CHL’s comprehensive income includes a Rs 43.30 crore gain

CHL Limited (CHL) reported Rs 55.15 crore of consolidated total comprehensive income for the half year ended 30 September 2026, including a Rs 43.30 crore non-cash foreign-currency translation gain. Consolidated profit after tax was Rs 11.85 crore, meaning the translation entry accounted for most of the reported comprehensive total.

What drove CHL’s half-year comprehensive income?

CHL’s Rs 55.15 crore consolidated total comprehensive income was driven mainly by Rs 43.30 crore of other comprehensive income and Rs 11.85 crore of profit after tax for the half year ended 30 September 2026. The other comprehensive income arose from translating subsidiary CJSC CHL International’s financial statements from Tajikistani Somoni into Indian rupees.

The result compared with a consolidated total comprehensive loss of Rs 32.29 crore for the half year ended 30 September 2025. In that earlier period, CHL recorded a Rs 12.86 crore loss after tax and negative other comprehensive income of Rs 18.43 crore. Other comprehensive income therefore improved by Rs 61.73 crore year on year.

The Rs 43.30 crore amount was recorded in other comprehensive income, or OCI, under the foreign-currency translation reserve rather than in profit after tax. CHL said the translation fluctuation did not result in an actual gain or loss, distinguishing the entry from realised foreign-exchange income or cash earnings.

How did CHL’s reported profit and income change?

CHL returned to a consolidated profit after tax of Rs 11.85 crore in the half year ended 30 September 2026, from a Rs 12.86 crore loss in the corresponding 2025 period. Profit before tax rose to Rs 14.23 crore from a Rs 12.47 crore loss as total income increased and total expenses declined.

Consolidated revenue from operations increased to Rs 72.06 crore from Rs 63.09 crore, while other income rose to Rs 20.03 crore from Rs 8.41 crore. Total income consequently reached Rs 92.09 crore, compared with Rs 71.50 crore a year earlier. Total expenses declined to Rs 77.86 crore from Rs 83.97 crore.

CHL operates in one segment and does not report separate operating segments under Indian Accounting Standard 108, according to its 5 November 2026 filing. The results therefore do not provide a hotel-by-hotel or business-line split of the Rs 72.06 crore in half-year revenue from operations.

In the September 2026 quarter, CHL reported Rs 1.71 crore of consolidated profit after tax, down from Rs 10.14 crore in the June 2026 quarter. Quarterly total comprehensive income was Rs 9.09 crore, compared with Rs 46.07 crore in June, as OCI fell to Rs 7.37 crore from Rs 35.93 crore. This shows that comprehensive income moved more sharply than reported profit across the two quarters.

Why is CHL’s translation gain not cash profit?

CHL says the Rs 43.30 crore translation gain is not cash profit because it arose from converting the subsidiary’s assets and liabilities, excluding equity share capital, from Tajikistani Somoni into Indian rupees. The company recorded the amount under Indian Accounting Standard 21, which covers the effects of changes in foreign-currency rates, for the period ended 30 September 2026.

The filing separately says CJSC CHL International accounted for exchange fluctuation on its foreign-currency loan during the same period. CHL said a gain from the appreciation of the Tajikistani Somoni against the US dollar was recognised as non-operating other income. The filing does not quantify that loan-related gain or state that it is the same as the Rs 43.30 crore OCI translation amount.

CHL’s consolidated cash-flow statement includes a Rs 62.29 crore foreign-exchange-fluctuation adjustment for the half year ended 30 September 2026. Net cash from operating activities was Rs 122.44 crore, while net cash used in investing activities was Rs 99.35 crore, including Rs 113.97 crore spent on property, plant and equipment. These cash-flow figures include accounting adjustments and are separate from the Rs 55.15 crore comprehensive-income measure.

The balance sheet also reflects movements in the Indian-rupee presentation of overseas balances. Consolidated total assets increased to Rs 1,032.89 crore at 30 September 2026 from Rs 914.04 crore at 31 March 2026, while property, plant and equipment rose to Rs 935.94 crore from Rs 824.87 crore.

What is the status of CHL’s EXIM Bank settlement?

CHL disclosed that CJSC CHL International had 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. CHL provided a corporate guarantee for the loan, while the late Dr L K Malhotra provided a personal guarantee.

EXIM Bank’s application against CHL before the National Company Law Tribunal, Delhi, was dismissed, and that decision was upheld by the National Company Law Appellate Tribunal. EXIM Bank’s civil appeal remained pending before the Supreme Court at 30 September 2026. It also claimed USD 44,611,207 plus interest before Debt Recovery Tribunal-III, New Delhi, where the next hearing was scheduled for 30 November 2026.

CHL said a one-time settlement crystallising CJSC CHL International’s liability at USD 34 million was executed by letter dated 29 May 2026 and was under execution at 30 September 2026. However, the auditor’s 5 November 2026 emphasis-of-matter paragraph said the latest settlement extension had expired on 30 September 2026 and had not been extended by the report date.

The auditor did not modify its limited-review conclusion over the settlement or litigation matter. Consolidated non-current borrowings stood at Rs 286.13 crore at 30 September 2026, compared with Rs 262.23 crore at 31 March 2026, while other current financial liabilities increased to Rs 233.35 crore from Rs 195.26 crore.

Conclusion

CHL’s shift to Rs 55.15 crore of consolidated comprehensive income in the half year ended 30 September 2026 reflected both a return to Rs 11.85 crore of profit after tax and a Rs 43.30 crore non-cash translation gain. The currency entry materially affected reported OCI, while higher total income and lower expenses supported the movement in profit after tax.

The next disclosed event is the 30 November 2026 Debt Recovery Tribunal-III hearing on EXIM Bank’s claim. Investors can also watch for EXIM Bank’s response to CHL’s request to extend the USD 34 million one-time settlement, whose previous extension had expired on 30 September 2026.