CHL Limited reported a consolidated net profit of ₹101.38 crore for the first quarter ended June 30, 2026, marking a significant turnaround from the net loss of ₹82.02 lakh recorded in Q1FY26. The surge in profitability was primarily driven by non-operating items, specifically a foreign currency translation gain of ₹35.92 crore recognized under Other Comprehensive Income (OCI) due to the appreciation of the Tajikistani Somoni against the US Dollar. Meanwhile, standalone operations showed modest growth, with revenue from operations rising 7.8% year-on-year to ₹212.40 lakh, although standalone net profit fell 41.6% to ₹29.44 lakh.

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.

Financial Performance Overview

Standalone revenue from operations increased to ₹212.40 lakh in Q1FY27, up from ₹197.10 lakh in the corresponding quarter of FY26. 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 Q1FY26. Consequently, standalone profit before tax decreased to ₹40.52 lakh from ₹68.03 lakh. After accounting for tax expenses of ₹11.08 lakh, the net profit for the period stood at ₹29.44 lakh, down from ₹50.40 lakh previously.

In contrast, the consolidated figures reflected substantial volatility due to foreign exchange movements. Consolidated revenue from operations remained relatively stable at ₹347.58 lakh, compared to ₹314.40 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 ₹460.66 crore.

Legal and Regulatory Disclosures

The auditor’s report included an emphasis of matter regarding ongoing litigation involving the subsidiary CJSC CHL International. The company acts as a corporate guarantor for a USD 32.50 million term loan availed by the subsidiary from the Export Import Bank of India (EXIM Bank) for a hotel project in Dushanbe, Tajikistan. EXIM Bank has filed applications before the National Company Law Tribunal (NCLT), Debt Recovery Tribunal (DRT), and the Supreme Court of India.

A One Time Settlement (OTS) was executed between EXIM Bank, the borrower, and guarantors, crystallizing the liability at USD 34 million. This settlement is currently under implementation as of June 30, 2026. The auditor noted that while the litigation remains pending adjudication in the Supreme Court and DRT, the OTS has been brought on record in the pending original applications. The company’s conclusion on the financial statements was not modified regarding this matter.

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 8% 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.

CHL Limited has opened a special window for the re-lodgement of transfer requests for physical shares, effective from February 5, 2026, to February 4, 2027. This initiative follows SEBI Circular No. HO/38/13/11(2)2026-MIRSD-P0D/13750/2026 dated January 30, 2026. The facility is available to shareholders who purchased shares prior to April 1, 2019, but whose transfer requests were rejected, returned, or not attended due to document deficiencies or other reasons.

The company specified that securities re-lodged during this period will be issued only in Demat mode once all documents are verified as complete. Transferred shares will be mandatorily credited in Demat mode and will be subject to a lock-in period of one year from the date of registration of transfer. During this lock-in period, the securities cannot be transferred, lien-marked, or pledged.

To be eligible for the current window, the original security certificate must be available. Requests lodged for transfer before April 1, 2019, that were previously rejected or returned are eligible, provided the certificate is available. Fresh lodgements or requests where the original certificate is missing are not eligible for this special window.

Shareholders with eligible requests are advised to contact the company's Registrar and Share Transfer Agent (RTA), BEETAL Financial & Computer Services Pvt Ltd., with the requisite documents. The RTA is located at BEETAL HOUSE, 3rd Floor, 99, Madangir, Behind LSC, New Delhi - 110062. Queries can also be directed to the company at cs@chl.co.in .

Applicability of Special Window