Puravankara Ltd Management Discussions

INDIAN ECONOMY

India closed FY 2025–26 as one of the most compelling growth stories in the global economic landscape, crossing a landmark threshold by displacing Japan to emerge as the world s fourth-largest economy by nominal GDP. This ascent is not an isolated data point it reflects the cumulative outcome of structural reforms, policy continuity and deepening domestic demand that have steadily elevated India s economic weight over the past decade. India is on track to secure the third position by 2028, a trajectory that places it in the company of the worlds largest and most consequential economies.

Real GDP expanded by 7.6% in FY 2025 26, building on the 7.1% registered in FY 2024 25, while nominal GDP climbed 8.6% to reach 345.47 lakh crore. The growth engine drew fuel from household consumption holding firm, an uptick in both public and private capital formation and concurrent strength in the industrial and services segments a broad-based expansion that underscores the economys structural depth.

Sectoral Growth Momentum

Across the principal pillars of the economy, FY 2025 26 was a year of broad-based advancement, with industry and services both registering meaningful acceleration relative to the prior year.

Industrial GVA growth strengthened to 6.2% from 5.9% in FY 2024–25, with the construction segment contributing materially to this uplift. A pickup in manufacturing output, supported by improving capacity utilisation and a favourable investment climate tied to infrastructure-linked demand, reinforced industrial momentum. For a sector-agnostic real estate developer like Puravankara, the sustained buoyancy in construction activity signals healthy underlying demand for both residential and commercial space across key urban markets.

The services sector retained its position as the dominant value creator in the economy with GVA growth accelerating sharply from 7.2% to 9.1% over the same period. Trade, transport, communication and allied services registered the highest sub-sectoral growth at 10.1%, while services exports remained a source of steady foreign exchange inflow, supporting macroeconomic stability. Expanding services employment and rising urban incomes translate directly into growing aspirational demand for quality residential property across the cities where Puravankara operates.

Inflation

One of the most consequential macro developments of FY 2025 26 was the sustained retreat in consumer prices. Indias headline CPI inflation averaged 2.7% during FY 2025 26, significantly lower than the previous years levels and well within the Reserve Bank of Indias target range. This disinflation was driven principally by a broad softening in food and fuel prices, which together account for 52.7% of the consumption basket.

Among major emerging market peers, India recorded one of the sharpest year-on-year inflation improvements, with headline CPI easing by approximately 1.8 percentage points between 2024 and 2025. Lower inflation directly enhances household disposable income, reduces the cost of home ownership and strengthens consumer confidence all of which are positive tailwinds for residential demand.

Responding to the softening price environment, the Reserve Bank of India (RBI) embarked on a calibrated rate easing cycle during the fiscal year. The policy repo rate was brought down to 5.25%, reducing the cost of borrowing for homebuyers and developers alike. Simultaneously, the Cash Reserve Ratio (CRR) was trimmed to 3%, releasing additional liquidity into the banking system and enhancing credit availability across the economy. For the residential real estate sector, these monetary conditions are particularly constructive lower home loan rates improve affordability and widen the addressable buyer base.

Infrastructure Development

India s government-led infrastructure investment programme has been one of the defining engines of economic activity over the past several years and FY 2025 26 continued this upward trajectory. Central government capital expenditure reached 11.21 lakh crore (Budget Estimates) a 4.2x increase over the 2.63 lakh crore deployed just eight years earlier in FY 2017 18. As a share of GDP, effective central capital expenditure has climbed from a pre-pandemic average of approximately 2.7% to nearly 4.0% in recent budgets a transformational step up in the investment intensity of the public sector.

State-level investment has been further catalysed through targeted fiscal transfers, including the Special Assistance to States for Capital Investment (SASCI) scheme, broadening the geographic spread of infrastructure delivery across the country. For Puravankara, this multi-year infrastructure build-out is directly consequential: improved urban connectivity, expanding metro networks, new highway corridors and city-level infrastructure upgrades collectively elevate the attractiveness of emerging residential micro-markets in cities such as Bengaluru, Chennai, Mumbai, and Pune.

The Union Budget for FY 2026 27 has proposed a further increase in capital expenditure to 12.2 lakh crore, consolidating the long-term policy commitment to investment-driven growth and reinforcing demand conditions for the construction and real estate sector over the medium term.

Outlook: Structural Tailwinds for Real Estate

The macroeconomic compass for India points decisively upward. Real GDP growth for FY 2026 27 is broadly projected in the 6.8% 7.2% range, supported by domestic consumption staying robust, a sustained public investment push, moderating input costs and deepening private sector participation across infrastructure, manufacturing, and digital services.

The Viksit Bharat 2047 vision India s blueprint for achieving developed-economy status by the centenary of independence provides a long-horizon policy anchor that reinforces investor confidence and shapes the long-term urbanisation and infrastructure agenda. Continued structural reforms, digital infrastructure expansion, financial inclusion and a young, growing workforce provide durable underpinnings for the countrys economic ascent.

For the residential real estate sector specifically, the convergence of declining borrowing costs, rising household incomes, accelerating urbanisation and government-supported housing initiatives creates a compelling demand environment. Puravankara is strategically positioned with a diversified portfolio across luxury, premium affordable, plotted segments and an expanding pan-India footprint to capitalize on these structural growth drivers as India s housing market enters an extended upcycle.

INDUSTRY OVERVIEW

INDIAN REAL ESTATE SECTOR

Indias real estate sector continued to demonstrate resilience during FY 2025 26, supported by strong urbanization, rising disposable incomes, infrastructure-led development and sustained demand for premium residential housing. The sector benefited from improving consumer confidence, increasing formalization following RERA implementation, and continued consolidation in favour of branded and financially strong developers.

The industry is witnessing a structural transformation, shifting from cyclical recoveries to sustained, demand-driven growth. This transition is being driven by the rapid expansion of the middle class, evolving consumer aspirations, strong economic fundamentals, and increasing adoption of technology and sustainable development practices. Demand remained robust across key metropolitan markets, particularly in the premium and luxury housing segments, with homebuyers increasingly preferring trusted developers and lifestyle-oriented developments.

Indias real estate market remains well-positioned for long-term growth, supported by favourable demographics, urbanization, infrastructure investments and rising home ownership aspirations. According to industry estimates, the sector has the potential to reach approximately US$ 1 trillion by 2030. https://www.researchgate.net/publication/392164458_India%27s_ take_on_Real_Estate_Overview_and_Outlook_2025-2030 https://www.grantthornton.in/globalassets/1.-member-firms/india/assets/ pdfs/realty bytes/realty_bytes_may_2025.pdf

Indias residential market in FY 2025–26 transitioned into a phase of calibrated consolidation after a multi-year upcycle (FY22 FY24) that recorded a 26% CAGR in area sales. The year was characterised by volume moderation, sustained value growth and a decisive structural shift in demand towards premium and luxury housing. Residential sales in Indias top 7 cities are estimated to have moderated by 0 3% YoY to 620 640 million sq. ft. for FY26, against a backdrop of elevated average selling prices (ASPs) and affordability constraints in the affordable and mid-income segments. https://www.business-standard.com/amp/industry/news/housing-sales-to - decline -3-pc-in-f y26- amid-price -rise - an d-supply -recovery-125091100542_1.html https://www.grantthornton.in/globalassets/1.-member-pdfs/realty-bytes/realty_bytes_may_2025.pdf

Sales, Prices & Inventory

Residential sales in top 7 cities for FY26 estimated at 620 640 msft, a moderation of 0 3% YoY following a 26% CAGR upcycle in FY22 FY24. [ICRA / Biz Std] In Q3 FY26, housing sales volumes declined ~9% YoY to 97,080 units across top 7 cities; however, aggregate sales value rose 14% YoY to 1.52 lakh crore, underscoring the value shift to premium segments. [Money Control/CBRE] Average Selling Prices (ASPs) rose over 10% during FY26 a continuation of the 10%+ annual ASP growth recorded in FY23 FY25. Home prices rose ~10% nationally during calendar year 2025. [ICRA / Biz Std] New launches are estimated to have grown 4 7% in FY26 to 630 650 msf, recovering from a 14% decline in FY25, supported by spillover projects and healthy unsold inventory. [ICRA / Biz Std] Years-to-Sell (YTS) ratio remained healthy at 1.0 1.1x by March 2026, indicating balanced inventory management despite supply recovery. [ICRA / Biz Std] Home loan originations for first 9 months of FY26 stood at 2.6 million new loans totalling 8.3 trillion (USD 92.6 billion); public banks contributed 50.3% of new credit value. [Global Prop Guide]

Luxury & Premium Segment The Dominant Growth Story

The luxury housing segment(above 1crore)was defining theme of FY 2025 26, sustaining its out performance as India s HNI and ultra-HNI population continued to expand. This segment remained structurally insulated from broader affordability pressures, driven by lifestyle upgrades, post-pandemic preference for larger homes and wealth creation in technology and financial ecosystems. https://www.gulftoday.ae/opinion/2025/12/20/indias-luxury-housing-segment-continues-to-rule-market-in-7-cities

Of 3.95 lakh units sold across the top 7 cities in full yaer 2025, nearly 30% were in the luxury segment remarkable given the nationwide surge in home prices. [Gulf Today/Anarock] https://www.business-standard.com/industry/news/housing-sales-top-7-cities-fall-14pc-2025-value-rises-luxury-anarock-125122600341_1.html

Luxury housing sales jumped 85% YoY in H1 FY26, nearing 7,000 units across major cities (CBRE-Assocham). [MoneyControl/CBRE] Mid-range and premium homes ( 40 lakh 1.5 crore) recorded ~39% average price appreciation across the top 7 cities since 2022. [Gulf Today/Anarock] HNIs and ultra-HNIs showed strong preference for low-density formats villas, townhouses, and plotted developments offering privacy and harmony with nature. [Grant Thornton] Delhi-NCR registered 18% YoY price growth in 2025 (highest among metros); Bengaluru followed with 13% YoY growth, reinforcing its status as India s technology and premium housing hub. [Altois Report]

Office & Commercial Real Estate

Office leasing reached record levels in FY 2025 26, driven by the continued expansion of Global Capability Centres (GCCs), IT/ ITES companies, e-commerce players and flexible workspace operators. India s office positive rental growth with vacancy rates at multi-quarter lows. https://www.grantthornton.in/globalassets/1.-member-firms/india/assets/pdfs/realty-bytes/realty_bytes_may_2025.pdf

India s office market surpassed 89 million sq. ft. of gross leasing activity in 2025, building on the record 79 million sq. ft. leased in 2024. [IBEF RE India] For the first time, gross leasing in India s top 7 markets crossed 60 million sq. ft., up 26.4% YoY. [IBEF RE India] Overall office vacancy rates dropped to ~17% the lowest in 14 consecutive quarters. [KPMG India] India s flexible workspace market expanded up to 18% in FY26, driven by GCCs, startups and hybrid working models. [IBEF RE India] India is rapidly emerging as a global data centre hub, attracting heavy institutional and technology firm capital amid exponential growth in digital consumption. [Grant Thornton]

INDIAS HOUSING SECTOR

India s housing sector navigated a defining shift in FY 2025 26, shifting from the volume-led post-pandemic upcycle to a value driven, structurally disciplined growth phase. While aggregate unit sales moderated, the total market value continued to rise sharply, driven by strong premiumization, rising average ticket sizes and sustained buyer confidence in branded and execution-ready projects. The sector closed the year with housing sales crossing 6 lakh units nationally, at an estimated total value of 8.4 lakh crore. https://www.outlookmoney.com/invest/indias-real-estate-market-booms-as-premium-housing-drives-record-residential-sales

Key Metric	FY 2025\u201326 / CY 2025 Data	Source
Total Housing Sales (National CY 2025)	~6 lakh units / 8.4 lakh crore value	Outlook Money Mar-26
		https://economictimes.indiatimes.com/markets/
		digital-real-estate/realty-news/developers-bet-
		big-on-luxury-as-housing-market-value-expected-
		to-cross-rs-6-65-lakh-crore-in-fy26-anarock/
		articleshow/125241002.cms
Residential Registrations (CY 2025)	~5.45 lakh units / 4.46 lakh crore	Square Yards Dec-25
Top 7 Cities Sales Volume (CY 2025)	3,95,625 lakh units ( 14% YoY in units)	Whalesbook/Anarock
Top 7 Cities Sales Value (CY 2025)	6+ lakh crore (+6% YoY in value)	Whalesbook/Anarock
New Launches Top 7 Cities (CY 2025)	4.19 lakh units (+2% YoY)	Whalesbook/Anarock
New Launches RERA Data (CY 2025)	4.6 lakh+ homes (+18% YoY)	Square Yards Dec-25

Affordable Housing Segment

The affordable housing segment remained relatively subdued during FY 2025 26, with demand growth lagging the premium and luxury residential categories. Developers across major urban markets increasingly prioritized higher-margin projects, resulting in limited new launches in the affordable segment. While affordability-driven demand continues to exist, rising input costs and changing consumer preferences have contributed to a gradual shift toward mid-income and premium housing. Despite these near-term challenges, the segment remains supported by Indias urbanization trends, housing demand and government-led initiatives aimed at improving homeownership. through PM Awas Yojana Urban 2.0 ( 10 lakh crore), the Urban Challenge Fund ( 1 lakh crore However, in Budget FY26) and the Maharashtra Housing Policy 2025 (35 lakh homes) is expected to progressively stimulate supply and demand in this segment. [IBEF RE India]

Government Initiatives & Union Budget

Initiatives	Key Developments in Union Budget 2026\u201327
PMAY-U 2.0 (Pradhan Mantri Awas	Continued allocation toward PMAY-U 2.0 with focus on affordable urban housing and
Yojana Urban)	interest subsidy support. Budget allocation for PMAY-U remained a key component under
	Ministry of Housing & Urban Affairs https://prsindia.org/budgets/parliament/demand-for-grants-
	2026-27-analysis-housing-and-urban-affairs
SWAMIH Fund II	Government initiated rollout of 15,000 crore SWAMIH Fund II to support completion of
	additional 1 lakh stalled housing units. https://economictimes.indiatimes.com/news/economy/policy/
	swamih-fund-ii-rollout-underway-rs-15000-crore-boost-for-stalled-housing-says-nirmala-sitharaman/
	articleshow/129748403.cms
	https://www.pib.gov.in/PressNoteDetails.aspx?ModuleId=3&NoteId=157795&id=157795&utm
Infrastructure-led Urban	Union Budget 2026 27 continued emphasis on metro rail, highways, logistics corridors,
Development	and Tier I & Tier II urban infrastructure expansion. Continued investments in metro
	rail, highways, logistics corridors, smart cities, and urban infrastructure under NIP
	and government capex programmes. https://timesofindia.indiatimes.com/real-estate/news/
	union-budget-2026-signals-renewed-momentum-for-real-estate-and-focus-on-tier-1-and-tier-2-cities/
	articleshow/127834938.cms
	https://www.ibef.org/industry/real-estate-india
Tier I & Tier II City Development Push	Budget emphasized urban expansion and infrastructure-led growth in Tier I & Tier II
	cities. Rs.5000 Cr has been per region has been proposed over a period of 5 years. https://
	timesofindia.indiatimes.com/real-estate/news/union-budget-2026-signals-renewed-
	estate-and-focus-on-tier-1-and-tier-2-cities/articleshow/127834938.cms
Digital Governance & Housing	Increased adoption of digital approvals, DBT mechanisms, geo-tagging, and digital
Transparency Measures	monitoring under PMAY-U 2.0. https://timesofindia.
	urban-housing-scheme-rules-explained/articleshow/131206690.cms

Smart Cities & Sustainability Projects

The Government of India has continued to prioritize sustainable urbanization and infrastructure-led development through flagship programmes such as the Smart Cities Mission, AMRUT, metro rail expansion and the recently approved Urban Challenge Fund. These initiatives are aimed at improving urban mobility, digital governance, climate resilience, water and sanitation infrastructure, and overall urban liveability across major metropolitan and emerging cities. Various projects are as follows:

Smart Cities Mission	Investments of approximately	To promote sustainable urban	https://www.pib.gov.in/
	1.64 lakh crore across over	development through smart	PressReleaseIframePage.
			aspx?PRID=2030491
	8,000 projects in 100 cities;	infrastructure, integrated
	GOI budget allocation of	command systems, digital	https://www.pib.gov.in/PressNoteDetails. existing GST structure has helped
			aspx?ModuleId=3&NoteId=154736
	48,000 crore.	governance, mobility solutions
		and improved urban liveability.
AMRUT / AMRUT 2.0	Projects worth approximately	To strengthen urban water	https://mygovscheme.com/atal-mission-for-
	78,910 crore under AMRUT	supply, sewerage systems,	rejuvenation-and-urban-transformation-
			amrut-2025/
	programmes.	green spaces, stormwater
		drainage and sustainable
		urban infrastructure.
Urban Challenge Fund	Proposed corpus of 1	To establish a 1 lakh	https://www.pib.gov.in/PressReleasePage.
(UCF)	lakh crore with potential to	crore Urban Challenge	aspx?PRID=209838
	catalyze nearly 4 lakh crore	Fund for implementation of
	investments.	projects relating to \u201c Cities
		as Growth Hubs \u201d , urban
		redevelopment, water &
		sanitation infrastructure, and
		creative transformation of
		cities through public-private
		participation models.
Climate-Resilient &	Policy-driven investments	To encourage environmentally	https://www.pib.gov.in/PressReleasePage.
Sustainable Urban	toward green buildings,	sustainable urbanization	aspx?PRID=2252186
Development	renewable integration, clean	and climate-resilient city
	mobility, and sustainable	infrastructure.
	infrastructure.
Digital Governance &	Deployment of integrated	To improve governance
Smart Infrastructure	command centres, smart	efficiency, service delivery
Systems	utilities, digital approvals and	and urban infrastructure
	e-governance systems.	management.

Taxation and GST

TheGoods and Services Tax (GST) regime continues to contribute toward greater transparency and standardization in India s real estate sector. GST is applicable primarily on under-construction properties, with affordable housing projects attracting a concessional GST rate of 1% and other residential under-construction properties subject to 5% GST, both without Input Tax Credit (ITC). Affordable housing generally covers residential units priced up to 45 lakh, subject to prescribed carpet area norms. Under-construction commercial properties are generally taxed at 12%, with ITC benefits available for eligible entities.

GST is not applicable on ready-to-move-in or completed properties for which the Completion Certificate (CC) or Occupancy Certificate (OC) has been issued, as such transactions are treated as sale of immovable property and remain outside the scope of GST. Similarly, resale transactions and sale of land are exempt from GST applicability. taxation framework for the real estate sector by reducing tax cascading, The improving compliance and enhancing pricing transparency for homebuyers. Stable taxation policies and concessional GST rates for affordable housing are expected to continue supporting housing affordability and demand across residential segments, while also benefiting organized developers through a more streamlined and transparent tax environment.

COMPANY OVERVIEW

Established in 1986, Puravankara Limited is among India s most reputed and longstanding real estate developers, with a legacy of nearly four decades. Headquartered in Bengaluru, the Company has built a robust pan-India presence across key metropolitan cities including Bengaluru, Chennai, Hyderabad, Kochi, Mumbai, Pune, Goa, Mangalore, and Mysore, while actively expanding its footprint in Western India and exploring international opportunities. The Company operates through four well-differentiated brands catering to a broad spectrum of homebuyers:

Puravankara Luxury and premium residential developments

Provident Housing Premium affordable housing ant ramp-up in

Purva Land Plotted developments

Purva Streaks Provides end to end interior solutions.

As of March 31, 2026, the Company has successfully delivered 95 completed residential and commercial projects encompassing over 57.36 million sq. ft. of completed developable area. An additional 36.69 million sq. ft. across 24,000+ homes is under active development, while a land bank of 39.69 million sq. ft. of developable area underpins the future growth pipeline. The Group s total development potential stands at approximately 93.17 million sq. ft. (including land under settlement/clearances), reinforcing its position as one of India s most diversified real estate platforms.

The Company s credit profile continues to be affirmed, with ICRA reaffirming Puravankara

Portfolio Snapshot – As at March 31, 2026

Parameter	Details
Completed Projects	95 projects 57.36 msft developable area
Homes Under Development	24,000+ homes 36.69 msft developable area
Land Bank	39.69 msft developable area
Total Development Pipeline	~93.17 msft (including land under clearance)
Geographic Presence	Bengaluru, Chennai, Hyderabad, Kochi, Mumbai, Pune, Goa, Mangalore, Mysore, Coimbatore
Credit Rating	ICRA \u2018A\u2013\u2019 Stable

PURAVANKARA BUSINESS OVERVIEW Operational Performance

At Puravankara Limited, FY 2025 26 has been a year of robust operational momentum, marked by strong pre-sales growth, improved profitability, accelerating project deliveries, disciplined capital management, and an active expansion of the development pipeline across Southern and Western India.

Total consolidated revenue for FY 2025-26 stood at INR 3,739.83 crore, compared to INR 2,013.61 core in FY 2024-25, driven from 2,510 units in FY 2024-25 to 3,742 units in FY 2025-26.primarilybya

FY 2025-26 – Key Financial & Operational Highlights

Metric	FY 2025-26	FY 2024-25	YoY Change
Sales Value (INR Crore)	7,407	5,006	+47.96%
Sales Volume (msft)	7.25	5.67	+28%
Total consolidated revenue (INR Crore)	3,739.83	2,013.61	+86%
EBITDA Value (INR Crore)	396.62	48.19	+723.03%
\u201c A \u201d Stable. PAT (INR Crore)	56.75 (Profit)	182.92 (Loss)	+131 %
Units Handed Over	3,742	2,510	+49%

FY 2025-26 marked a significant inflection in profitability, with the Company recording a PAT (consolidated) of INR 56.75 crore against a loss of INR 182.92 crore in FY 2024-25. Total income surged by 84% year-on-year, primarily driven by the handover of 3,742 units. EBITDA margin expanded to 17.22% from 5.25% in FY 2024-25, reflecting improved scale, higher-value project completions, and operational leverage. interest: 34.86 msft)

Sales Performance & Geographic Diversification

The South region (primarily Bengaluru) remained the Company s largest revenue contributor at 61% of FY26 sales value, while Chennai accounted for 13%, and Mumbai and Pune together contributed 20% up from 15% in FY25 highlighting the Company s growing presence in Western India. Approximately 39% of sales volume in FY26 came from outside the Bengaluru market. On a unit value basis, 75% of the Group s sales were from units priced below INR 2 crore, and 35% from units priced below INR 1 crore, reflecting the continued importance of the affordable and mid-income segment to the Company s portfolio mix. Purva Silversky, Purva Northern Lights (Bengaluru) and Purva Estrella (Mumbai) were the key new project launches during FY26, contributing meaningfully to South and West pre-sales respectively.

Project Launches & Completions

During FY26, the Company launched 6.39 msft of new projects and phases across Kochi, Bengaluru, Mumbai, Pune, and Chennai. Completions in the same period aggregated 4.53 msft, predominantly in Bengaluru (79%), with the balance in Pune and Chennai. Key completions included Atmosphere T1, Provident Equinox II, Provident Oakshire, Provident Parksquare V, Atmosphere T2, Silversand II, Sound of Water and Purva

Soukhyam Phase Meryta.

As of March 31, 2026, the Company had 1,821 units (2.53 msft) for which Occupancy Certificates have been obtained but handovers are pending, primarily owing to the awaited issuance of e-Khata in Bengaluru. Once resolved, this inventory is expected to generate significant revenue recognition in coming quarters.

Land Bank & Pipeline Expansion

The Company continued to build its development pipeline aggressively estimated Gross Development Value (GDV) of approximately INR 15,200 crore. Key acquisitions included:

Land acquisition in Attibele, Bengaluru 53.5 acres ~6.41 msft Estimated GDV: INR 4,800 crore

Joint Venture in North Bengaluru with KVN Property Holdings LLP 24.59 acres ~3.48 msft Estimated GDV: INR 3,300+ crore

Redevelopment project in Malabar Hills, Mumbai 1.43 acres ~0.7 msft Estimated GDV: INR 2,700 crore

Redevelopment project in Chembur, Mumbai 3.78 acres ~1.28 msft Estimated GDV: INR 2,100 crore

Joint Development in East Bengaluru (Balegere) 5.5 acres ~0.85 msft Estimated GDV: INR 1,000+ crore

Joint Development in Bengaluru (Hennur Road) 4 acres ~0.84 msft Estimated GDV: INR 1,300+ crore

The planned project pipeline as of March 31, 2026, comprises 21.02 msft of total launches (including new phases), with a saleable area of 18.26 msft. The Company has identified 18 new projects for launch, predominantly in Bengaluru and Mumbai, with an estimated cash flow potential of INR 8343 crore from new launches.

Puravankara s redevelopment portfolio in Mumbai has grown to approximately 4.38 msft of developable area and 2.67 msft of saleable area (Company s share), spread across five projects at various stages of execution, including Apna Ghar (Lokhandwala), Deccan (Pali Hills), Miami (Breach Candy), Deonar Baug (Chembur), and Malabar Hills. This portfolio is a key strategic differentiator as the Company deepens its presence in Mumbais premium urban micro-markets.

Key Financial Ratio

Ratio	FY 25-26 (in %)	FY 24-25 (in %)	Variances (%)	Rationale
Debt Equity Ratio	1.53	1.36	12
Current Ratio	1.03	1.02	1
Net Profit Margin	3	(22)	(114)	The
				current year \u2019 s profit compared
				in previous year.
Return on Capital	0.04	(0.06)	(172)	The ratio has changed mainly due to
Employed				current years profit compared to losses in
				previous year.
Trade Receivables atio has changed mainly due to r 8.05 4.24 90 The
Turnover Ratio				increase in revenue from operations for
				the current year compared to previous
				year.
Inventory Turnover	0.31	0.13	130	The ratio has changed mainly due to
Ratio				increase in cost of goods sold for the
				current year compared to previous year.

Capital Management & Debt Profile landacquisitionswith The Company maintained combined disciplined capital management through FY26. As of March 31, 2026, gross debt (excl. payable when able debt) stood at INR 4,016 crore, while net debt (excl. payable when able debt) reduced to INR 2,321 crore from INR 2,949 crore in FY25, a reduction of INR 628 crore Y-o-Y basis. Cash and bank balances increased to INR 1,283 crore. The when able debt) improved to 11.05% from 11.85% as at March 31, 2025, reflecting favourable refinancing conditions.

The Net Debt-to-Equity ratio (excl. payable when able debt) improved to 1.31x as of March 31, 2026, from 1.70x as at March 31, 2025. The Company s debt repayment schedule is well-structured, with 21% due within one year and 44% in the second year, supported by a robust operating cash flow cycle.

Strategic Priorities & Outlook

Puravankara is well-positioned for sustained growth in FY 2025 26, underpinned by a robust launch pipeline, improving execution cadence, and a strong demand environment for residential real estate across its operating geographies. Key strategic priorities for the remainder of the year include:

Accelerating new project launches across Bengaluru, Kochi, and Mumbai to convert the INR 13,900 crore GDV pipeline into pre-sales

Driving handovers of the 2,443 units (2.40 msft) pending e-Khata issuance in Bengaluru, to unlock revenue recognition Scaling the redevelopmentportfolioinMumbaias differentiator in high-value urban micro-markets long-term Continued reduction of net debt through strong operating cash flows and disciplined capital allocation Strengthening the Western India platform through the Purva Panorama launch momentum in Thane and the Pune residential pipeline

Embedding sustainability and digital transformation across the project lifecycle and customer experience has changedmainlydueto With a 50-year legacy, a diversified brand portfolio, and a development pipeline of approximately INR 16,100 crore in estimated surplus, Puravankara is strategically positioned to deliver long-term, compounding value to all stakeholders.

Human Resources Talent Development and Capability Building

Building future-ready capability strengthens business performance and succession readiness. Learning interventions focused on functional excellence, leadership effectiveness and role readiness.

Sales capability enhancement through Buyer Behaviour, DISC Persona Model, and GRE simulation-based learning.

Technical capability programs covering RCC, Waterproofing, Concrete Enhancement Technologies, and site ownership practices.

Sales Development Centre assessments completed for 120 internal employees and 29 external leadership participants.

Strengthened customer engagement, technical quality, leadership readiness, and productivity.

Employee Experience and Engagement

Strong employee experiences improve retention, collaboration, and organizational alignment. Engagement initiatives focused on communication, participation and connection.

• Quarterly Employee Connect sessions introduced structured employee-manager discussions and feedback mechanisms.

• GrowthX Annual Operating Plan sessions strengthened understanding of business priorities and goals.

River of Wishes initiative strengthened employee participation during the organization s 50th-year celebration.

Cleanathon initiative engaged 150+ employees in sustainability and community participation.

Culture, Inclusion and Well-Being

Employee well-being and workplace trust remain key drivers of a high-performance culture. Programs focused on inclusion, awareness and employee care.

Women s Day initiatives included wellness, development, and recognition sessions.

POSH and Code of Conduct programs reinforced respectful workplace practices.

Safety Week activities included awareness programs, drills, emergency preparedness, and employee participation.

• Strengthened workplace trust, safety awareness and inclusion.

Onboarding and Leadership Integration

Effective onboarding accelerates productivity and improves employee experience. Structured frameworks supported faster integration.

Buddy Program relaunched with a structured three-month onboarding approach.

Two-week leadership induction journey introduced through site visits, stakeholder interactions and knowledge transfer sessions.

Improved early engagement and leadership readiness.

Operational Excellence and Digital Transformation

Scalablesystemsimprove efforts focused on creating a digitally enabled HR ecosystem.

Initiated implementation of Purva PeopleFirst integrated HRMS platform.

Completed process redesign, workflow configuration, testing and readiness activities.

Enabled adoption through 80+ Change Champions and organization-wide training.

Improved process standardization, transparency and scalability.

Risks & Concerns

Risk management is integral to the Companys strategy, operating discipline and long-term stakeholder value creation. The real estate development business is exposed to risks arising from macroeconomic cycles, customer affordability, market demand, project approvals, land and development rights, construction execution, supply chain continuity, funding conditions, regulatory changes, technology, climate and stakeholder expectations. The Company seeks to manage these risks through disciplined project selection, prudent capital allocation, phased launches, robust internal controls, governance oversight, risk-based decision-making and continuous monitoring of material business exposures.

I. Market, Demand and Pricing Risk

The Company s performance is influenced by sale across its projects, which are shaped by macroeconomic conditions, interest rate movements, buyer sentiment, competitive intensity, micro-market dynamics, product positioning and brand perception. Any sustained moderation in demand, softening of pricing, increase in inventory levels or change in customer preferences may affect sales velocity, realizations, margins and cash-flow timing. The Company seeks to mitigate this risk through a diversified portfolio strategy, calibrated pricing, periodic review of market conditions and phased inventory release. Product design, launch planning and pricing decisions are evaluated with reference to micro-market demand, customer segment, competitive supply and absorption trends. This approach enables the Company to remain responsive to changing market conditions while maintaining discipline around project-level economics and long-term value creation.

II. Sales Volume, Launch and Affordability Risk

Sales momentum depends on the Company s ability to launch projects at the right time, secure necessary approvals, offer products aligned with evolving customer expectations and maintain customer confidence through the project lifecycle. Changes in home-loan affordability, interest rates, employment conditions, buyer sentiment, regulatory approvals or competitive activity may affect booking velocity and revenue conversion. The Company manages this risk through phased launches, customer-centric planning, market research, channel partners governance and active monitoring of demand patterns. Launches are calibrated to project readiness, regulatory status, micro-market conditions and expected absorption. The Company also seeks to address a broad spectrum of customer needs through differentiated product offerings, thereby reducing overdependence on any single price point, customer segment or market cycle.

III. Land Acquisition, Title and Development Rights Risk

Land acquisition and development rights are critical to the Company s growth and involve risks relating to title clarity, ownership disputes, zoning restrictions, land-use permissions, encumbrances, statutory approvals, infrastructure alignments, joint development arrangements and counterparty obligations. Delays or defects in title, approvals or development rights may affect project commencement, project viability, timelines, costs and reputation. The Company seeks to mitigate these risks through legal, technical and commercial due diligence before committing to land or development rights. Site evaluation includes assessment of title, regulatory permissions, land-use compatibility, infrastructure plans, market potential and development feasibility. The Company also uses structured agreements, appropriate contractual protections, senior management oversight and external legal opinion along with escalation mechanisms for complex land parcels, redevelopment opportunities, joint development arrangements and other strategic acquisitions.

IV. Project Execution, Construction, Quality and Safety Risk

Project execution is exposed to risks arising from construction delays, cost escalation, labour availability, contractor performance, productivity challenges, design changes, statutory clearances, utility connections, weather events, safety incidents and quality defects. Any delay or deficiency in execution may impact project timelines, margins, customer satisfaction, regulatory commitments and brand reputation.

The Company manages these risks through disciplined project planning, critical-path monitoring, construction oversight, quality assurance processes, contractor governance and periodic review of project progress. Execution is supported by in-house capabilities, experienced project teams, reputed contractors and specialist consultants where required. The Company also places emphasis on safety governance, worksite supervision, insurance coverage, quality checks, snagging processes and structural certifications to strengthen delivery discipline and reduce execution risk.

V. Supply Chain and Resource Risk

The Company s operations depend on the timely availability of construction materials, skilled labour, equipment, contractors, vendors and other project resources. Volatility in material prices, vendor concentration, contractor underperformance, logistics disruptions, statutory non-compliance within the vendor ecosystem or quality gaps may affect costs, delivery timelines, ESG commitments and execution efficiency. The Company seeks to mitigate these risks through multi-vendor sourcing, procurement planning, vendor capability assessment, contractual safeguards and continuous monitoring of key input costs and supply availability. Vendors and contractors are evaluated with reference to quality, delivery track record, financial strength, statutory compliance and execution capability. The Company also seeks to build resilience by diversifying procurement channels, strengthening vendor governance and aligning procurement decisions with project schedules and quality requirements.

VI. Financial, Liquidity and Capital Allocation Risk

Real estate development is capital intensive and involves long project cycles. The Company is exposed to risks arising from funding availability, borrowing costs, interest rate volatility, refinancing conditions, working capital requirements and capital allocation decisions. Any tightening of liquidity or increase in financing costs may affect project execution, land acquisition opportunities, profitability and growth plans.

The Company seeks to manage financial risk through prudent capital allocation, cash-flow discipline, periodic review of financing obligations, liquidity planning and balanced use of internal accruals and external funding sources. Capital deployment is evaluated against project viability, execution readiness and expected cash flows. The Company also monitors its debt profile, repayment obligations and liquidity position to support operational continuity and preserve financial flexibility across market cycles.

VII. Credit, Collection and Counterparty Risk

The Company is exposed to risks relating to customer collections, customer creditworthiness, delayed payments, cancellation trends and performance of counterparties such as joint development partners, vendors, contractors and other business associates. Delayed collections or counterparty underperformance may affect cash flows, project funding, execution discipline and financial stability. The Company seeks to mitigate this risk through milestone-linked collection processes, receivables monitoring, ageing analysis, early-warning reviews and customer due diligence at the booking stage. Counterparty relationships are evaluated based on commercial terms, operational capability, financial strength, contractual obligations and performance history. Appropriate contractual safeguards, periodic performance reviews and escalation mechanisms are used to manage exposure to key counterparties and support timely project delivery.

VIII. Regulatory, Legal and Compliance Risk

The real estate sector operates within a complex regulatory environment involving RERA, local planning laws, land-use regulations, environmental approvals, building codes, taxation, labour laws, corporate laws, listing obligations and evolving ESG-related disclosure requirements. Changes in laws, delays in approvals, non-compliance with regulatory requirements, litigation, tax disputes or enforcement actions may result in financial penalties, project delays, operational disruption and reputational impact.

The Company manages this risk through proactive compliance tracking, legal review, regulatory documentation, internal controls, statutory filings, internal audit processes and engagement with external advisors where necessary. Project launches and construction activities are undertaken with attention to applicable approvals and compliance requirements. The Company also seeks to maintain structured documentation, periodic compliance reporting and management oversight to strengthen regulatory preparedness and reduce avoidable legal or compliance exposures.

IX. Environmental, Climate and Sustainability Risk

Environmental and climate-related risks may affect the Company s project planning, construction productivity, water availability, flood exposure, heat stress, material choices, energy efficiency, environmental compliance and business continuity. Physical climate events and evolving sustainability expectations may increase operating complexity, project costs, regulatory scrutiny and stakeholder expectations.

The Company seeks to manage these risks by integrating environmental considerations into project planning, design, construction and operations. Measures include water conservation, rainwater harvesting, resource efficiency, waste management, environmental compliance monitoring and sustainable design practices. The Company also continues to strengthen its approach to climate resilience, disaster preparedness and business continuity, recognising that responsible and sustainable development is essential to long-term stakeholder value.

X. Technology, Cybersecurity and Data Protection Risk

Increasing digitalisation of business processes, customer communication, finance, procurement, project monitoring, sales, customer relations, human resources and enterprise systems increases exposure to cyber threats, data breaches, system downtime, unauthorised access, software compliance issues and operational disruption. A technology failure or cybersecurity incident may affect business continuity, data integrity, customer servicing, financial reporting and stakeholder confidence. The Company seeks to mitigate these risks through formal IT policies, access controls, secure connectivity, system monitoring, cybersecurity infrastructure, data backup, recovery processes and periodic review of technology controls. The Company continues to strengthen digital governance across enterprise applications, communication platforms and operating systems. Emphasis is placed on safeguarding confidential information, enhancing system resilience and improving preparedness for cyber incidents and business interruptions.

XI. Human Capital and Organizational Resilience Risk

The Company s growth and execution capability depend on the availability, retention and development of skilled professionals across leadership, project management, construction, design, sales, finance, legal, technology and support functions. Attrition of key talent, skill gaps, insufficient succession depth, workforce safety concerns or organisational capability constraints may affect project execution, customer service, institutional knowledge and strategic agility. The Company seeks to address these risks through structured talent management, learning and development, leadership development, succession planning, performance management, employee engagement, workplace safety and grievance redressal mechanisms. A resilient organisation, supported by capable people and clear governance, remains central to the Company s ability to execute its strategy and respond to changing business conditions.

XII. Stakeholder Risk

The Company seeks to manage this risk through ethical business conduct, transparent communication, customer engagement, responsible project planning, quality focus, ESG integration and structured grievance redressal. Customer expectations are managed through clear communication on project specifications, progress updates, contractual terms and post-sales service processes. The Company also seeks to engage responsibly with employees, customers, vendors, communities, regulators and shareholders, recognising that sustained trust is fundamental to the Companys license to operate and ability to create long-term value.

Internal Control Systems

Our internal control systems are appropriately designed and scaled to match the nature, size, and complexity of our operations. Emphasising continuous improvement, we have prioritised the enhancement of our IT infrastructure across both hardware and software domains. Supported by well-defined policies, robust standard operating procedures (SOPs), clearly articulated financial and operational delegations of authority, and a structured organisational framework, we ensure the seamless and efficient execution of our business operations.

To further strengthen its governance framework, the Company has appointed Grant Thornton Bharat LLP as its Internal Auditor to independently assess the adequacy and effectiveness of its internal control framework through a risk-based internal audit plan covering key operational, financial, compliance, procurement, project execution, vendor management, and cost monitoring risks. The Internal Auditors present their findings and recommendations to the Audit Committee on a quarterly basis. Audit observations are classified as High, Medium, or Low based on the severity and potential impact of identified control gaps, enabling timely prioritisation of corrective actions. The Audit Committee reviews these observations and monitors the implementation of managements action plans to continuously strengthen the Companys internal control and governance framework.

Sustainability

Puravankara continues to advance its sustainability agenda during the year, making steady progress towards its 2030 ESG commitments. Efforts remained focused on integrating sustainable practices across the project lifecycle through the expansion of green building certifications, improvement in energy and water efficiency, progress towards zero waste to landfill, and increased adoption of recycled and sustainable construction materials. Our developments continue to be designed and executed in accordance with green building standards, including IGBC, LEED and IFC EDGE.

These initiatives reflect our commitment to responsible growth, operational resilience, regulatory preparedness, and the creation of long-term value for its stakeholders.

Cautionary Statement

The statements contained in this Management Discussion and Analysis describing the Company s objectives, expectations, projections, estimates, strategies and outlook may constitute forward-looking statements within the meaning of applicable laws and regulations. Such statements are based on certain assumptions and expectations of future events and are subject to a variety of risks, uncertainties and other factors, including changes in economic conditions, regulatory developments, market dynamics, customer preferences, funding availability, project execution challenges and other factors beyond the Company s control. Actual results, performance or achievements may differ materially from those expressed or implied in these statements. Readers are advised not to place undue reliance on forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required under applicable law.