CHL Limited reported a significant year-on-year decline in standalone profitability for the first quarter of FY26, with net profit falling 42% to ₹2.94 crore from ₹5.04 crore in Q1FY25. The drop was driven by a contraction in revenue from operations and higher operational expenses. However, the consolidated net profit rose sharply to ₹10.14 crore, compared to a loss of ₹82.02 lakh in the corresponding period last year, largely due to non-operating foreign exchange gains recognized by its subsidiary, CJSC CHL International.

The Board of Directors approved the unaudited financial results at a meeting held on July 30, 2026. The results were reviewed by D G A & Co., the independent auditors, pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The audit report included an emphasis of matter regarding pending litigation involving Export Import Bank of India (EXIM Bank) against the company as a corporate guarantor for a loan availed by CJSC CHL International.

Financial Performance

Standalone revenue from operations decreased to ₹21.24 crore in Q1FY26, down from ₹19.71 crore in Q1FY25, representing a modest growth that was offset by rising costs. Total expenses stood at ₹20.46 crore, up from ₹17.23 crore in the prior year quarter. Employee benefit expenses increased to ₹6.52 crore from ₹6.31 crore, while operational expenses rose significantly to ₹10.81 crore from ₹8.34 crore. Other income declined to ₹3.27 crore from ₹4.32 crore.

In consolidated terms, revenue from operations grew 11% to ₹34.76 crore from ₹31.44 crore. Other income saw a substantial jump to ₹14.94 crore from ₹4.61 crore, primarily due to exchange fluctuation gains. The subsidiary recognized foreign exchange gains of ₹11.40 crore arising from the appreciation of the Tajikistani Somoni against the US Dollar, which reduced foreign currency-denominated liabilities. These gains were classified as other income since they did not arise from principal operating activities.

Litigation and Settlement Updates

The company disclosed ongoing legal proceedings related to a USD 32.50 million term loan from EXIM Bank for the construction of a five-star hotel in Dushanbe, Tajikistan. CHL Limited acted as a corporate guarantor alongside Late Dr. L K Malhotra. EXIM Bank had previously filed applications before the National Company Law Tribunal (NCLT) and Debt Recovery Tribunal (DRT). The NCLT dismissed the petition, a decision upheld by the National Company Law Appellate Tribunal (NCLAT). EXIM Bank’s civil appeal challenging this judgment is pending before the Supreme Court of India.

A One Time Settlement (OTS) was executed between EXIM Bank, the principal borrower, and the guarantors, crystallizing the liability of CJSC CHL International to USD 34 million. This settlement is currently under implementation. EXIM Bank has filed separate applications before DRT-III regarding the personal and corporate guarantors, noting that the settlement is being implemented. The next hearing date for the DRT case is August 18, 2026.

What the Numbers Show

The divergence between standalone and consolidated performance highlights the impact of non-operating items on the group's bottom line. While standalone operations faced margin pressure with expenses rising faster than revenue, the consolidated result was heavily influenced by currency translation effects. The subsidiary CJSC CHL International reported total assets of ₹85,682 crore, including a revalued building of ₹52,528 crore. The recognition of ₹11.40 crore in forex gains and ₹35.92 crore in other comprehensive income (OCI) from currency translation reserves underscores the sensitivity of the group's financials to foreign exchange fluctuations in Tajikistan.

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