CHL Limited returns to quarterly profit as operating costs fall

CHL Limited reported standalone profit after tax of Rs 3.78 crore for the quarter ended 30 September 2026, reversing a Rs 4.44 crore loss a year earlier as operating expenses declined to Rs 11.71 crore from Rs 19.81 crore and revenue from operations rose to Rs 23.09 crore.

How did CHL's standalone quarterly earnings change?

CHL returned to standalone profitability in the quarter ended 30 September 2026, reporting profit before tax of Rs 5.06 crore and profit after tax of Rs 3.78 crore. In the quarter ended 30 September 2025, it recorded a pre-tax loss of Rs 5.82 crore and a post-tax loss of Rs 4.44 crore.

The result also improved from the preceding quarter. Standalone profit after tax was Rs 2.94 crore in the quarter ended 30 June 2026, while profit before tax was Rs 4.05 crore. Total income rose by Rs 2.89 crore quarter on quarter to Rs 27.40 crore, while total expenses increased by Rs 1.88 crore to Rs 22.34 crore.

For the half year ended 30 September 2026, CHL reported standalone profit after tax of Rs 6.73 crore, compared with Rs 0.60 crore in the corresponding prior-year half year. Profit before tax rose to Rs 9.11 crore from Rs 0.99 crore, and total income increased to Rs 51.91 crore from Rs 47.80 crore.

What drove CHL's return to standalone profit?

The main reported change was a 41% year-on-year reduction in operating expenses, which fell by Rs 8.10 crore to Rs 11.71 crore in the September 2026 quarter from Rs 19.81 crore a year earlier. That reduction exceeded the Rs 2.82 crore increase in revenue from operations over the same period.

Total expenses declined by Rs 7.24 crore to Rs 22.34 crore from Rs 29.58 crore. Consumption of provisions and other items rose to Rs 2.30 crore from Rs 1.99 crore, employee benefit expense increased to Rs 7.36 crore from Rs 6.99 crore, and depreciation rose to Rs 0.97 crore from Rs 0.80 crore, but the operating-expense reduction offset those increases.

Other income, including rentals, was Rs 3.40 crore for the September 2026 quarter, compared with Rs 3.50 crore a year earlier. Finance costs were Rs 0.03 crore, versus Rs 0.05 crore in the September 2025 quarter, while revenue from operations accounted for the increase in total income.

How did CHL's first-half expenses compare with last year?

CHL's standalone total expenses for the half year ended 30 September 2026 decreased to Rs 42.80 crore from Rs 46.81 crore in the prior-year period. Operating expenses declined to Rs 22.52 crore from Rs 28.14 crore, alongside a Rs 4.11 crore rise in total income to Rs 51.91 crore.

Employee benefit expense fell to Rs 10.86 crore for the six months from Rs 13.29 crore a year earlier, while consumption of provisions and other items increased to Rs 4.42 crore from Rs 3.85 crore. Depreciation and amortisation rose to Rs 1.96 crore from Rs 1.51 crore, and finance costs declined to Rs 0.01 crore from Rs 0.01 crore after conversion from the reported lakh figures.

CHL said it operates in one segment and has no separate reportable segments under Indian Accounting Standard 108 on operating segments. The filing therefore does not divide the first-half revenue from operations of Rs 45.23 crore among hotel, property, geographic or other operating categories.

Why was CHL's consolidated profit lower than standalone profit?

CHL reported consolidated profit after tax of Rs 1.71 crore for the September 2026 quarter, below standalone profit after tax of Rs 3.78 crore. Consolidated total income was Rs 42.39 crore and total expenses were Rs 39.41 crore, resulting in consolidated profit before tax of Rs 2.98 crore.

The filing identifies CJSC CHL International as CHL's subsidiary. The consolidated review report stated that the subsidiary recorded a loss after tax of Rs 2.07 crore for the quarter ended 30 September 2026 despite total revenue of Rs 14.99 crore; its total comprehensive income was Rs 5.30 crore, including a Rs 7.37 crore currency-exchange fluctuation gain.

For the half year ended 30 September 2026, consolidated profit after tax was Rs 11.85 crore, compared with a loss after tax of Rs 12.86 crore in the corresponding prior-year period. CHL also recorded Rs 43.30 crore of foreign-currency translation fluctuation in other comprehensive income for the half year, which it said did not represent an actual gain or loss and was included in the foreign currency translation reserve.

What do CHL's cash and balance-sheet figures show?

CHL's standalone cash and cash equivalents rose to Rs 49.47 crore at 30 September 2026 from Rs 39.14 crore at 31 March 2026. Net cash from operating activities was Rs 9.70 crore for the six-month period, while investing activities used Rs 2.53 crore and financing activities used Rs 1.90 crore.

Standalone total assets were Rs 227.83 crore at 30 September 2026, compared with Rs 219.70 crore at 31 March 2026. Other equity increased to Rs 191.04 crore from Rs 184.08 crore, while long-term borrowings declined to Rs 1.30 lakh from Rs 5.46 lakh and current liabilities rose to Rs 12.85 crore from Rs 12.15 crore.

Consolidated total assets were Rs 1,032.89 crore at 30 September 2026, up from Rs 914.04 crore at 31 March 2026. Consolidated non-current liabilities were Rs 315.13 crore, including long-term borrowings of Rs 286.13 crore, compared with standalone non-current liabilities of Rs 12.98 crore.

What is the status of CHL's EXIM Bank settlement and litigation?

CHL said CJSC CHL International agreed a USD 32.50 million term loan from Export Import Bank of India, or EXIM Bank, for construction of a five-star hotel in Dushanbe, Tajikistan, for which CHL provided a corporate guarantee. EXIM Bank has claimed USD 44,611,207 plus interest before Debt Recovery Tribunal-III in New Delhi, where the next hearing is scheduled for 30 November 2026.

A one-time settlement involving EXIM Bank, the principal borrower and guarantors crystallised CJSC CHL International's liability at USD 34 million through a letter dated 29 May 2026, and CHL said the settlement was under execution at 30 September 2026. CHL stated that it had requested a further extension and expected one in due course.

However, the auditor's consolidated review report said the settlement extension expired on 30 September 2026 and had not been extended by the report signing date of 5 November 2026. The auditor drew attention to that matter without modifying its review conclusion, while EXIM Bank's civil appeal before the Supreme Court remained pending.

Conclusion

CHL's September 2026 standalone return to profit reflected an Rs 8.10 crore year-on-year fall in operating expenses and a Rs 2.82 crore rise in revenue from operations. The company reported profit after tax of Rs 3.78 crore after a Rs 4.44 crore loss a year earlier, while the subsidiary's Rs 2.07 crore quarterly loss contributed to consolidated profit of Rs 1.71 crore.

The next disclosed event is the 30 November 2026 Debt Recovery Tribunal-III hearing on EXIM Bank's claim. CHL has requested a further extension of the USD 34 million one-time settlement after the previous extension expired on 30 September 2026, while future consolidated figures will continue to include the subsidiary's results and foreign-currency translation effects.