Woodsvilla Ltd Management Discussions

For the Financial Year Ended 31st March 2026

Industry Structure and Developments

The Indian hospitality industry remains one of the fastest-growing service sectors, contributing to GDP and employment across lodging, food and beverages, travel and tourism, wellness and event management. Demand continues to be supported by domestic and international travel, infrastructure investment, government tourism initiatives and rising disposable incomes. The sector retains a strong multiplier effect across transportation, food & beverages and aviation.

Opportunities

1. Growth in domestic and international tourism: rising tourist footfall to leisure and cultural destinations supports demand for mid-size and boutique formats, which the Company is positioned to serve through experiential offerings and location advantage.

2. Business and MICE travel: Indias position as a hub for IT, pharmaceuticals, finance and manufacturing sustains demand for business travel and MICE, providing a steady corporate revenue stream.

3. Digital and technological integration: investment in mobile apps, CRM, AI-enabled booking and contactless check-in/out enhances the guest experience and loyalty.

4. Experiential and sustainable tourism: the shift toward eco-friendly stays, wellness and cultural immersion creates opportunities to package local experiences and promote sustainable practices.

Threats, Risks & Concerns

1. Economic cyclicality: as a discretionary service, hospitality is sensitive to inflation, interest rates and disposable incomes.

2. Intensifying competition: a fragmented market with global chains, aggregators and alternative stays requires differentiation through service quality.

3. Regulatory and compliance framework: multiple, frequently-changing regulations (FSSAI, GST, fire and safety, labour laws) require ongoing compliance.

4. Seasonality and regional dependence: occupancy and revenue remain seasonally skewed, challenging cash-flow consistency.

5. Security and health risks: continued investment in hygiene, safety protocols and staff training remains essential to protect reputation.

Outlook

The outlook for FY 2026 27 remains positive, supported by domestic tourism, a revival in international travel and demand for value-driven, experiential and sustainable stays. The Company intends to focus on technology-led guest touchpoints, staff up-skilling, local engagement and prudent, asset-light growth, while maintaining compliance and ESG discipline.

Human Resources / Industrial Relations

Industrial relations remained cordial during FY 2025 26. The Company continued its initiatives on standard operating procedures, structured onboarding, training, career development and an inclusive, ethical workplace culture with formal grievance-redressal mechanisms. As on 31st March 2026, the Company had 12 employees on its payroll.

Segment-wise or Product-wise Performance

The Company operates in a single segment hospitality services. Accordingly, segment-wise reporting under the applicable Indian Accounting Standards is not applicable.

Discussion on Financial Performance vis-a-vis Operational Performance

During FY 2025 26, the Companys financial performance was broadly aligned with its operational outcomes. Revenue from operations witnessed a moderate decrease owing to lower occupancy and other related reasons.

Compliance with Statutory and Legal Requirements

The Company remains committed to full compliance with the Companies Act, 2013, the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, labour and environmental laws and other applicable frameworks, supported by periodic compliance reporting and audits.

Going Concern

Based on its assessment of the Companys financial position, the Board is of the opinion that the Company has adequate resources to continue operations for the foreseeable future, and the financial statements for FY 2025 26 have been prepared on a going-concern basis.

Internal Control Systems and their Adequacy

The Company maintains an internal-control framework, reviewed periodically by the internal and statutory auditors and the Audit Committee, to ensure adherence to policies and SOPs, safeguarding of assets, reliability of accounting records, compliance with laws, and identification and mitigation of risks.

Material developments in Human Resources

The company with its total employee strength as at FY26, continues to accord high priority to human resource development, with emphasis on improving skill, competence and knowledge through regular virtual/online training and in-house/external professional development programmes.

Key Financial Ratios

The key financial ratios for FY 2025 26 (with FY 2024 25 as the comparative) are set out below. The FY 2024 25 figures are those printed in the FY 2024 25 annual report and are retained without recomputation; the FY 2025 26 figures and the percentage changes are to be inserted from the audited financial statements.

Cautionary Statement

Statements in this Management Discussion and Analysis describing the Companys objectives, expectations or projections may be “forward-looking statements” within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed or implied, owing to changes in market conditions, regulatory developments, economic factors and other external and internal factors.