CHL company name reported a standalone net profit after tax (PAT) of ₹1,615.73 lakh for the financial year ended March 31, 2026, a decline from ₹2,492.56 lakh in FY25. The company’s total revenue stood at ₹10,941.81 lakh, slightly lower than the ₹11,134.38 lakh recorded in the prior year. While operational performance remained resilient with an average room occupancy of 86.31%, profitability was impacted by the settlement of long-pending property tax litigation and increased gratuity provisions under new labor codes. On a consolidated basis, the group reported a net profit of ₹42.03 lakh compared to a loss of ₹170.90 lakh in FY25, with total comprehensive income surging to ₹49,673.10 lakh largely due to a non-cash revaluation surplus.

The Board of Directors did not declare or recommend any dividend for FY26. The Annual General Meeting (AGM) is scheduled for September 3, 2026, where shareholders will vote on the re-appointment of Ms. Kajal Malhotra as a Non-Executive Non-Independent Director and seek special resolution approval for the continuation of Mr. Rakesh Mathur as an Independent Director beyond the age of 75, in compliance with Regulation 17(1A) of the SEBI Listing Regulations. Remote e-voting will be facilitated by Central Depository Services (India) Limited (CDSL) between August 31 and September 2, 2026.

Financial Performance Highlights

Standalone expenses rose to ₹8,740.80 lakh from ₹7,583.64 lakh in FY25, primarily due to operational costs and employee benefits. EBITDA margin contracted to 23.32% from 34.72% in the previous year. The consolidated statement reflects significant movement in other comprehensive income, driven by the revaluation of fixed assets at the subsidiary level.

Subsidiary Revaluation and Litigation Update

The most material item in the consolidated financials is the revaluation of the leasehold building owned by CJSC CHL International, the company’s subsidiary in Tajikistan. An independent valuation resulted in a credit of ₹52,688.04 lakh to the revaluation reserve, significantly boosting equity. This non-cash gain does not impact the profit and loss account but improves the balance sheet strength.

Regarding ongoing legal matters, the Export Import Bank of India (EXIM Bank) continues to pursue claims related to a USD 32.50 million term loan guaranteed by CHL Limited. A One Time Settlement (OTS) crystallizing the liability at USD 34 million is under implementation. Cases remain pending before the Debt Recovery Tribunal and the Supreme Court. Statutory auditors DGA & Co. issued an unmodified opinion but included an emphasis of matter paragraph regarding these litigations.

What the Numbers Show

The divergence between standalone and consolidated results highlights the accounting impact of the subsidiary’s asset revaluation rather than operational cash generation. While standalone operations faced margin pressure from rising operational expenses—particularly rent, rates, and taxes which jumped to ₹1,370.88 lakh from ₹254.91 lakh—the core hospitality business maintained high occupancy rates. The settlement of the ₹10.62 crore property tax liability under the MCD amnesty scheme provided clarity on contingent liabilities but weighed on current-year profits. Investors should note that the surge in consolidated comprehensive income is non-distributable and stems from valuation adjustments rather than revenue growth.

CHL Limited reported a consolidated net profit of ₹1,013.80 lakh for the first quarter ended June 30, 2026 (Q1FY27), marking a significant turnaround from the net loss of ₹82.02 lakh recorded in the corresponding period of FY26. This improvement was primarily driven by non-operating items, specifically a substantial foreign currency translation gain recognized under Other Comprehensive Income (OCI) due to the appreciation of the Tajikistani Somoni against the US Dollar. While the consolidated bottom line surged, standalone operations faced headwinds, with net profit falling 41.6% year-on-year to ₹294.40 lakh despite a modest rise in revenue. Investors should note that the consolidated profitability is largely structural rather than operational, reflecting macroeconomic currency movements rather than core business growth.

The Board of Directors, chaired by Managing Director Luv Malhotra, approved the unaudited financial results at a meeting held on July 30, 2026, in New Delhi. The results were reviewed by the Audit Committee and subsequently submitted to the Bombay Stock Exchange pursuant to Regulation 30 and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Statutory auditors D G A & Co. issued a limited review report, providing moderate assurance that the financial statements are free from material misstatement. The company also highlighted ongoing litigation involving its subsidiary CJSC CHL International regarding a USD 32.50 million term loan from the Export Import Bank of India (EXIM Bank), which remains under implementation via a One Time Settlement (OTS).

Financial Performance Overview

Standalone revenue from operations increased to ₹2,450.77 lakh in Q1FY27, up from ₹2,403.05 lakh in Q1FY26, representing a year-on-year growth of approximately 2.0%. However, total income saw a slight dip due to a decline in other income, which fell to ₹32.67 lakh from ₹43.20 lakh in the previous year. Consequently, standalone profit before tax decreased to ₹405.25 lakh from ₹680.39 lakh. After accounting for tax expenses of ₹11.08 lakh, the net profit for the period stood at ₹294.40 lakh, down from ₹504.01 lakh previously. Earnings per share (EPS) declined to ₹0.54 from ₹0.92.

In contrast, the consolidated figures reflected substantial volatility due to foreign exchange movements. Consolidated revenue from operations remained relatively stable at ₹4,969.86 lakh, compared to ₹3,604.66 lakh in Q1FY26. The key driver for the consolidated bottom line was the OCI component. The subsidiary, CJSC CHL International, recognized foreign exchange gains of ₹11.40 crore from currency appreciation, classified as other income. Additionally, the conversion of assets and liabilities resulted in a ₹35.92 crore gain under OCI-Foreign Currency Translation Reserves, which significantly boosted the total comprehensive income to ₹4,606.64 lakh.

What the Numbers Show

The divergence between standalone and consolidated results highlights the company’s exposure to foreign exchange fluctuations through its Tajikistan subsidiary. While core operational revenue grew steadily by nearly 2% on a standalone basis, the consolidated bottom line was disproportionately influenced by non-cash accounting gains related to currency translation. The ₹35.92 crore OCI gain underscores how macroeconomic factors in emerging markets can significantly impact reported equity and comprehensive income, even when operational cash flows remain stable. Investors should note that the consolidated net profit improvement is largely structural rather than operational, driven by balance sheet revaluation rather than top-line sales expansion.