Aditya Birla Real Estate Ltd Management Discussions

This report encapsulates the operational and financial performance of Aditya Birla Real Estate Limited (formerly Century Textiles and Industries Limited) for the fiscal year ended 31^st March, 2026, and constitutes an integral part of the Integrated Annual Report.

1. OVERALL REVIEW:

During the year under review, earnings before interest, tax, depreciation, and amortization (EBITDA), including those from the discontinued Pulp & Paper business, improved compared to the previous year. Our Real Estate segment recorded its highest-ever performance in both booking value and collections. As you know, the Textile Divisions operations were fully discontinued in the previous year. Consequently, during the current year, the remaining plant, machinery, and related accessories of that division were sold, and the leasehold land was transferred through the execution of a deed of assignment.

The Indian real estate sector has experienced notable growth and transformation in recent years. Demand patterns show a rising preference for premium and luxury homes, highlighting shifting consumer preferences. As a vital component of the economy, the real estate sector remains crucial to Indias development and is projected to contribute around 8% to the GDP by 2030.

This year, Birla Estates entered the redevelopment space by acquiring its first redevelopment project in a joint venture with Parinee Group. The project is located in Khar, Mumbai, one of citys most desirable micro-markets, and spread across 1.3 acres with a Gross Development Value (GDV) of Rs. 1,700 Crores. The development will offer luxury residential apartments tailored to meet the evolving lifestyle aspirations of discerning urban homebuyers.

Over the year, eight projects/phases were launched, all of which received a strong market response, demonstrating ongoing demand and growing interest in the Birla brand across key regions. The launch of Phase 2 of Birla Arika in Gurugram saw bookings surpassing Rs. 1,600 Crores, with nearly 97% of units sold within a month, highlighting robust demand. Birla Pravaah, a premium residential project in Sector 71, Gurugram, was launched and sold out within 24 hours, generating sales over

Rs. 1,800 Crores, indicating sustained momentum and strong performance in the NCR residential market. In the Mumbai Metropolitan Region (MMR), Birla Taranya was introduced, marking our entry into the Thane market with sales totalling Rs. 952 Crores. Birla Mrida was also launched in Boisar, Palghar marking our entry into the residential plotted development segment. In Pune, we launched Birla Punya Phase 2, and with the introduction of Birla Evam in Manjiri, we strategically entered a new micro-market, further broadening our regional footprint. In Bengaluru, we advanced with the launches of Birla Trimaya Phase 4 and Birla Evara Phase 2. All these projects received strong responses, reflecting continued customer interest across our markets.

At the Companys last Annual General Meeting held on 30^th July 2025, shareholders approved the sale of Companys Pulp and Paper business, operating under the name ‘Century Pulp and Paper (CPP), to the buyer ITC Limited (ITC) as a going concern on a slump sale basis for the lumpsum sale consideration of Rs. 3,498 Crores. The Competition Commission of India approved ITCs proposed acquisition of CPP vide its letter dated 16^th December, 2025. Once other necessary approvals are received, the transaction is expected to be completed in the latter part of the first half of the fiscal year 2026-27. As mentioned last year, this divestment of the Pulp and Paper division is a value unlocking strategy that will allow the Company to focus on growth opportunities in its core business.

2. BUSINESS SEGMENT - PULP AND PAPER (PULP, WRITING & PRINTING PAPER, TISSUE PAPER, AND MULTILAYER PACKAGING BOARD)

a. Industry Structure and Development:

Indias growth outlook remains robust. International Monetary Fund (IMF) has raised Indias GDP growth estimates to 6.5% for FY27 and FY28, supported by strong domestic demand and resilient exports. While India continues to be among the fastest-growing economies, despite global headwinds and potential energy price volatility from Middle East, geopolitical tensions poses a key downside risk.

Paper consumption in India remains structurally linked to economic growth, with low per capita usage indicating significantheadroom for expansion as income levels and policy support improve. The industry is undergoing a structural transformation driven by evolving economic conditions, geopolitical developments, demographic shifts, and technological advancements.

Given its energy-intensive nature and dependence on global trade flows, the sector remains exposed to external risks, particularly energy price volatility and supply chain disruptions arising from geopolitical tensions, which may exert pressure on cost structures. Demand fundamentals, however, remain robust, supported by rising disposable incomes, increasing literacy rates, higher government spending on education, rapid urbanization, and growing awareness around hygiene and personal care. Additionally, a larger working population and increased consumption propensity are expected to sustain long-term growth, positioning the industry for steady and demand-driven expansion.

Market observation indicates a strategic shift toward value-added products, cost optimization, and sustainable manufacturing practices to enhance long-term competitiveness and resilience.

b. Opportunities and Threats:

The Indian paper industry has undergone structural transformation driven by capital investments, advanced technology adoption, and improved operational efficiencies. Supportive government policies promoting sustainable forestry and eco-friendly materials are strengthening long-term industry sustainability. The following are the Opportunities & Threats for the Industry.

Opportunities:

• E-commerce sector expected to grow at 20-23% CAGR over the next 2-3 years, driving strong demand for packaging paper and board.

• Robust demand from FMCG, food & beverages, and pharmaceutical sectors continues to support packaging growth.

• Writing & printing segment expected to grow at a stable 2-3% CAGR, supported by a hybrid "Print and Digital" ecosystem.

• Increasing digital transactions are boosting demand for specialty grades such as thermal paper (labels and receipts).

• Rising literacy rates, higher government

spending on education, and NEP

implementation to drive sustained demand.

• Growing environmental focus is accelerating substitution of plastic with paper-based, biodegradable alternatives.

• Ongoing capacity expansions and

technological advancements expected to improve productivity and cost

competitiveness.

• Enhanced efficiency likely to support export growth in the medium term.

• Decor and absorbent kraft segments to benefit from steady growth in the real estate sector (~7.2% CAGR).

• Tissue segment expected to witness strong growth driven by rising hygiene awareness and increasing consumption across residential and institutional sectors.

Threats:

• Rising Imports Pressure: Increased duty-free imports from ASEAN markets continue to impact domestic pricing and market share.

• Geopolitical & Energy Risks: West Asia tensions are disrupting supply chains and driving up energy costs, significantly affecting margins.

Raw Material Volatility: Dependence on imported pulp and waste paper, coupled with domestic fiber shortages is creating pressure on profitability.

• Regulatory Compliance: Stricter

environmental norms and evolving export regulations are increasing compliance costs.

• Technology Gap: Slower adoption of advanced technologies versus global peers may impact competitiveness.

• Export Market Uncertainty: Geopolitical disruptions are weakening key export markets and affecting revenue stability.

c. Segmental Review and Analysis:

As you are aware, last year the Company has entered into a Business Transfer Agreement (BTA) for divestment of the Companys Pulp and Paper (CPP) Business and manufacturing facility situated in Lalkuan, Uttarakhand by way of slump sale to ITC Limited (ITC). As stated under Sr.No.1 as above viz. Overall Review the Competition Commission of India has approved ITCs proposed acguisition of Century Pulp and Paper (CPP) vide its letter dated 16^th December, 2025. Once other necessary approvals are received, the business will stand transferred effective from the closing date as per BTA entered into by the Company with ITC Limited.

The Writing & Printing segment demonstrated steady recovery, driven by education-led demand and improved institutional offtake. Pricing momentum strengthened amid cost pressures, while disciplined supply management supported realizations. Demand remained stable across copier and non-copier grades with Export markets remained mixed. Moderate growth outlook supported by structural consumption trends.

Virgin packaging board segment witnessed mixed demand trends, with gradual recovery led by FMCG and seasonal consumption. Pharma demand remained subdued due to API cost pressures and production rationalization. Industry-wide price increases were driven by elevated input costs. Export markets remained balanced overall, with softness in the Middle East and stable demand across Europe and the UK. Virgin tissue segment demand remained stable, supported by domestic consumption; however, entry of two new players has intensified competitive pressure. Export demand softened amid geopolitical disruptions and elevated freight costs.

According to IPMA report, Paper and paperboard imports into India dropped by 1.50 percent to 1.54 million tonnes in the April-December period of 2025- 26 against same period previous year. Increase in import is seen from ASEAN countries which jumped by 12.02 percent to 0.34 million tonnes in the period against same period previous year.

A Minimum Import Price (MIP) of Rs. 67,220/MT on a CIF basis was imposed by Government of India from 22^nd August, 2025 on virgin multi-layer paperboard which aims to curb dumping and protect domestic industry competitiveness.

d. Risks and Concerns:

The Indian paper industry is currently operating in a challenging environment marked by cost pressures, demand uncertainty, and supply-side constraints. Geopolitical disruptions and crude oil volatility are further inflating energy and freight costs, compressing margins across the value chain.

The elevated global pulp prices, rising wastepaper costs, and increased chemical, fuel, and logistics expenses have also significantly contributed to the demand for price hikes in the mills. The input costs inflation have subsequently impacted the overall cost structure, necessitating adjustments in product pricing.

At the same time, demand visibility remains challenging across segments, as customers adopt cautious procurement strategies and maintain lower inventory levels, resulting in inconsistent order flows. Export markets remain uncertain due to geopolitical factors, further impacting realization and volume stability.

The Indian virgin tissue segment is expected to witness intensified competitive pressure in FY 2026-27, driven by new entrants, potentially challenging pricing dynamics and market share.

While long-term demand fundamentals remain intact, the near-term outlook remains cautious.

e. Outlook:

Macro-economic tailwinds remain supportive, with Indias GDP growth projected by IMF ~ 6.5% for FY26 and FY27, citing strong domestic demand and resilient economic activity despite globa Aditya Birla Real Estate Limited

headwinds. Given the strong correlation between economic growth and paper consumption, Indias low per capita usage presents a structural growth opportunity as income levels and literacy rates improve.

Indias paper industry is positioned for steady, demand-led growth, supported by strong macroeconomic fundamentals and favourable structural drivers. Despite accounting for ~15% of the global population, India consumes only ~5% of global paper, highlighting significant headroom for per capita consumption growth. Over the past 5-7 years, the industry has witnessed investments exceeding Rs. 25,000 Crores toward capacity expansion, efficiency enhancement, and adoption of sustainable technologies.

Demand is expected to grow at 4-6% annually, reaching -30 million tonnes by FY27, with paperboard and specialty segments emerging as key growth drivers, supported by robust demand from FMCG, pharmaceuticals, food packaging, and organized retail. The expansion of e-commerce and increasing preference for premium and sustainable packaging solutions will further accelerate this trend.

Writing and printing demand is expected to see near-term uplift driven by increased government spending on education and implementation of NER while long-term growth remains moderate. Regulatory push toward reduction of singleuse plastics is accelerating substitution toward paper-based alternatives.

While short-term risks persist due to geopolitical disruptions and energy cost volatility, the mediurn- to long-term outlook remains positive. Industry players focusing on sustainability, backward integration, energy efficiency, and technological advancement will be better positioned to navigate cost pressures and capitalize on evolving market opportunities.

3. BUSINESS SEGMENT - REAL ESTATE

a. Industry Structure and Development:

The Indian real estate sector has exhibited significant growth and transformation in recent

years. Demand trends indicate an increasing preference for premium and luxury housing, reflecting evolving consumer preferences. As a key pillar of the economy, the real estate sector continues to play a critical role in Indias growth trajectory and is expected to contribute approximately 8% to the GDP by 2030.

Indias residential real estate market remained resilient in FY26, characterised by a divergence between volume and value growth. While overall sales volumes across major cities witnessed some moderation, total sales value increased, supported by sustained demand for higher-value homes and steady price appreciation across key micro-markets.

Consumer preference continued to favour well- located, branded developments with an increasing emphasis on design, quality, and sustainability. This has contributed to a gradual consolidation of demand toward established developers, particularly for marquee residential projects. During the last quarter of FY26, sales momentum witnessed a period of temporary moderation, reflecting cautious buyer sentiment amid prevailing global geopolitical uncertainties. However, underlying market fundamentals remained stable, with pricing trends continuing to demonstrate resilience.

In parallel, development strategies have evolved toward more capital-efficient models. There has been a discernible shift toward redevelopment and joint development arrangements, particularly in land-constrained urban markets such as Mumbai, where redevelopment activity has gained traction sup ported by p ol i cy i n itiati ves and stro ng underlying demand. These models enable developers to optimise capital deployment while participating in value creation driven by steady price appreciation rather than volume-led expansion.

The commercial real estate segment demonstrated steady performance during FY26. Office leasing activity remained robust, supported by demand from global capability centres, technology firms, and financial services occupiers. While occupiers continued to adopt a measured approach to expansion due to geopolitical uncertainties, high-

quality Grade A assets in key business districts maintained healthy absorption levels and stable rentals, reflecting sustained demand for premium office spaces.

b. Opportunities and Threats:

Evolving consumer preferences continue to create structural opportunities for the sector, with increased emphasis on quality, design, and overall living experience. Demand is increasingly oriented toward well-located and thoughtfully designed developments with strong amenity offerings and access to open spaces, while sustainability considerations are becoming an mportant factor in purchase decisions. These shifts also underscore the growing importance of execution, as timely delivery and construction quality play a critical role in building consumer trust and strengthening brand equity.

The Company has consistently focused on design-led development, incorporating modern lifestyle amenities and adopting environmentally responsible development practices while continuing to enhance execution capabilities to ensure on-time delivery and superior construction quality.

Evolving global geopolitical dynamics have intermittently impacted fuel and labour availability. Material supply chains have also experienced short-term disruptions at certain points.

These are being mitigated through diversified sourcing strategies, optimized vendor and contractor eco-systems, and efficient planning, ensuring greater flexibility and resilience while ensuring no material impact on project delivery timelines and long-term fundamentals.

c. Segment Review Analysis:

The Company has performed remarkably well in FY26, clocking their highest ever annual booking value and collections at Rs. 8,136 Crores and Rs. 3,341 Crores respectively, with nearly 5.5 million sq.ft, of area sold.

During the year, 8 projects/phases were launched, all of which witnessed a strong market response, reflecting sustained demand and continued

traction for the Birla brand across key markets. Birla Pravaah, a premium residential development in Sector 71, Gurugram, was sold out within 24 hours of launch, generating pre-sales exceeding Rs. 1,800 Crores. Birla Arika Phase 2 also recorded robust performance, with bookings surpassing Rs. 1,600 Crores and nearly 97% of units sold within a month, underscoring continued momentum in the NCR residential market.

In the MMR region, Birla Taranya marked an entry into the Thane market, further strengthening presence in the Mumbai Metropolitan Region. The launch of Birla Mrida in Boisar represented a strategic foray into the residential plotted development segment, expanding the overal portfolio. In Pune, the second phase of Birla Punya was introduced, while Birla Evam in Manjiri marked entry into a new micro-market, broadening the Companys footprint in the city. In Bengaluru, over 85% pre-sales were achieved for Birla Trimaya Phase 4, alongside healthy traction witnessed for Birla Evara Phase 2.

FY26 marked a significant milestone for Birla Estates with its entry into the redevelopment segment through a marquee luxury project in Khar (Pali Hill), undertaken in partnership with the Parinee Group. The project, with an estimated booking value potential of approximately Rs. 1,700 Crores represents a strategic foothold in Mumbais redevelopment market and positions the Company to participate in a growing segment with strong demand fundamentals.

Birla Estates demonstrated a strong commitment to safety in FY26, recording over 16 million safe man-hours across all projects. This commitment has been recognised through the conferment of the British Safety Councils Sword of Honour, one of the highest global workplace safety accolades, awarded to Birla Niyaara and Birla Tisya. In addition, Birla Niyaara was awarded the National Safety Councils Safety Shield Award, reflecting the Companys stringent on-site safety standards. Reflecting its continued focus on ESG, Birla Estates achieved a perfect 100/100 GRESB score this year, earning the distinction of being ranked the top

ranked residential developer in Asia. In a landmark achievement, Birla Niyaara became the first building in India to be certified by BREEAM, a UK based globally leading international standard for sustainable building design and performance. The project was awarded afive-star rating, underscoring the Companys leadership in sustainable and responsible real estate development.

As part of its calibrated marketing strategy, Birla Estates strengthened its association with the Indian Premier League (IPL) by securing the principal sponsorship of Gujarat Titans, one of the leagues leading franchises. Building on prior IPL engagements, this partnership represents a strategic step-up in visibility and brand salience and is expected to enhance on-field presence and audience recall, supporting deeper market penetration and sustained brand awareness across key residential markets.

Birla Estates continues to leverage technology and digitalisation as key enablers of growth and operational efficiency. During the year, it successfully implemented the Salesforce platform across marketing, sales, and customer relationship management functions, creating an integrated, data-driven ecosystem that streamlines the customer journey, enhances decision-making, and supports scalable growth.

d. Risk and Concerns:

The real estate sector continues to face risks arising from its inherent dependence on a labour-intensive and largely informal workforce. While underlying demand fundamentals remain stable, buyer behaviour has become increasingly selective and cautious, influenced by evolving global geopolitical conditions that may impact the economic outlook and overall sentiment. This could result in periodic moderation in absorption following a strong growth cycle. Additionally, regulatory and approval-related complexities persist, given the multi-layered compliance framework.

e. Outlook:

The outlook for the Indian real estate sector remains constructive, supported by sustained

demand and a continued preference for quality, well-located developments. While residential sales volumes may witness periodic moderation following a strong run, pricing is expected to remain resilient, particularly in micro-markets benefiting from infrastructure development and constrained supply. Developers are likely to maintain a calibrated approach to project launches, with a sharper focus on absorption- led growth, capital efficiency, and disciplined execution. Differentiation through product design, amenities, and delivery capabilities will remain critical as customer expectations evolve, with performance increasingly driven by precise market positioning rather than broad-based demand cycles.

The commercial real estate segment is expected to maintain stable momentum, supported by steady leasing demand from global capability centres, domestic corporates, and the continued expansion of service sectors. High-quality office assets in established business districts are likely to sustain healthy occupancy levels and stable rental trajectories.

4. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has strong internal control systems in place to support its growth goals, ensure regulatory compliance, and protect against fraud. An extensive internal audit structure, overseen by the Audit Committee, assesses the effectiveness of these controls and suggests improvements. The Companys Interna Control System is supported by a comprehensive, independent internal audit conducted throughout the year. Each year, a detailed internal audit plan covering various functions across all divisions is developed and approved by the Audit Committee. Every quarter, the Audit Committee meets with auditors and management to review audit results and agree on an action plan to address any areas needing improvement. Further, in accordance with circular dated 7^th January, 2026 issued by National Financial Reporting Authority (NFRA) a sub-group of the Board being Those Charged with Governance (TCWG) has been formed for an overall communication frame

work between TCWG and Auditors at least twice a year i.e. once before the commencement of audit and second time well in advance before approval of the annual financial statements by the Audit Committee.

In accordance with frame work for communication between TCWG and Statutory Auditors a meeting of TCWG was held before the approval of the Annual Financial Statements by the Audit Committee and the matters mentioned in the aforesaid NFRA circular

5. HIGHLIGHTS OF THE COMPANYS FINANCIAL PERFORMANCE:

were deliberated and no area of concern was observed for further deliberation at the Audit Committee. Audit findings are classified as High, Medium, or Low risk based on their potential impact, and are evaluated using a scientifically developed Control Effectiveness Index (CEI?) score. A CEI score above 90% indicates satisfactory performance, while a score below 71% is considered inadeguate. Currently, the Companys CEI score is 86%.

(Rs. in Crores)

PARTICULARS	Standalone		Consolidated
	2025-26	2024-25	2025-26	2024-25
Continuing Operations
Total Income	516.23	497.60	459.16	1,257.33
Earnings before Exceptional items, Finance Cost, Tax, Depreciation and Amortisation and Share of Profit/ (Loss) of Joint Venture (EBITDA)	370.06	352.21	(307.21)	68.04
Less: Finance Cost	175.87	140.14	64.40	45.75
Profit before Exceptional items, Tax, Depreciation and Amortisation and Share of Profit / (Loss) of Joint Venture	194.19	212.07	(371.61)	22.29
Less: Depreciation and Amortisation expenses	52.97	55.12	67.50	63.79
Profit before Exceptional items, Tax and Share of Profit / (Loss) of Joint Venture	141.22	156.95	(439.11)	(41.50)
Less: Exceptional item	(19.84)	(156.89)	(24.79)	(123.97)
Profit before Tax and Share of Profit/ (Loss) of Joint Venture	121.38	0.06	(463.90)	(165.47)
Less: Share of Profit/(Loss) of Joint Venture	-	-	(13.16)	(13.53)
Profit / (Loss) before tax	121.38	0.06	(477.06)	(179.00)
Less/(Add):
Current Tax	26.85	35.78	35.46	86.18
Current Tax pertaining to earlier year	-	-	(0.44)	1.08
Deferred Tax	(34.11)	(20.67)	(174.01)	(117.52)
Profit / (Loss) after tax from continuing operations	128.64	(15.05)	(338.07)	(148.74)
Discontinued Operations
Add / (Less):
Profit / (Loss) before tax from discontinued operations	210.26	(13.38)	210.26	(13.38)
Tax (Expense)/ Income of discontinued operations	12.99	4.68	12.99	4.68
Profit / (Loss) from discontinued operations	223.25	(8.70)	223.25	(8.70)
Net Profit / (Loss) for the year	351.89	(23.75)	(114.82)	(157.44)

The Consolidated EBITDA including exceptional item from continuing operations for the year 2025-26 is Rs. (345.16) Crores (including share of Joint Venture) as against Rs. (69.46) Crores for the previous year.

The Standalone EBITDA including exceptional item from continuing operations for the year 2025-26 is Rs. 350.22 Crores as against Rs. 195.32 Crores for the previous year.

In consolidated financial statement finance cost has gone up from Rs. 45.75 Crores to Rs. 64.40 Crores.

Key financial metrics for the fiscal year, including total ncome, EBITDA, and net profit, reflect the Companys performance. Noteworthy changes include increased nterest costs and satisfactory technical performance across all plants.

6. DETAILS OF SIGNIFICANT CHANGES (I E. CHANGE AS COMPARED TO IMMEDIATE PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS:

Ratios	2025-26	2024-25	Change (%)	Explanation for change
1. Debtors Turnover Ratio	27.48	24.65	-11.48	-
2. Inventory Turnover Ratio	4.05	7.44	-45.56	Due to decrease in sales resulting into lower cost of goods sold charged to statement of profit & loss and increase in real estate inventories due to more launch of projects.
3. Interest Coverage Ratio	*	0.01	-	-
4. Current Ratio	1.24	1.40	-11.43	-
5. Debt Equity Ratio	1.53	1.29	-18.60	-
6. Operating Profit Margin (including discontinued operations) (%)	-8.37	-1.20	-597.50	Due to decrease in sales resulting in lower margins.
7. Net Profit Margin (including discontinued operations) (%)	-3.28	-3.54	7.34
8. Return on Net Worth (%)	-3.10	-4.05	23.46	-

* since the computed ratio is negative, it is not disclosed.

The above key financial ratios are in accordance with Note 47 of Consolidated Financial Statements prepared in accordance with Ind AS requirements and Schedule III of the Companies Act, 2013 and exhibit changes compared to the previous fiscal year, attributed to various factors impacting operational and financial performance.

7. HUMAN RESOURCE DEVELOPMENT / INDUSTRIAL RELATIONS:

The Company remains dedicated to investing in the growth and development of its employees, recognizing this as a vital factor for business success. Based

on this conviction, the Company has continued to implement a comprehensive employee development strategy that encourages continuous learning, cross- functional collaboration, and career advancement. To support internal mobility and prepare future leaders, the Company promoted internal job opportunities and introduced targeted mentoring programs for high- potential staff.

Career development continued to be a major priority, featuring structured learning paths, training sessions, and team activities. Learning Fest 2025 was an initiative designed to explore growth opportunities and enhance skills in line with the Aditya Birla Groups vision, aiming

to cultivate a strong learning culture and upgrade employee capabilities at all levels. Throughout the year, employees were nominated for a variety of online and offline training programs to offer them broad learning experiences. The learning event, conducted both in- person and virtually, included engaging sessions such as Dialogue in the Dark, Behavioural Competency, Maximizing Productivity, Digital Transformation, Emotional Intelligence, and Mindfulness, all intended to help employees better understand their behaviour, skills, digital trends, emotions, and potential career paths.

To enhance leadership capabilities, leadership programs incorporating peer learning in both classroom and online formats have been conducted for emerging leaders. This program addressed key areas such as leadership skills, behavioural competencies, people management, and digital transformation.

With a heritage spanning over 125 years, our esteemed organization values a legacy built on trust, integrity, commitment, passion, seamlessness, and speed. We credit our operational achievements to our dedicated teams, who play a vital role in advancing our future goals. We take pride in cultivating an inspiring workplace culture marked by agility and high performance, designed to attract, develop, and retain top talent. This approach strengthens our reputation as an employer of choice. The ongoing positive industrial relations maintained across all plants and project sites further demonstrate our organizations lasting success.

As of March 31, 2026, the total number of employees stands at 2,125 (2,129 as of March 31, 2025), representing a strong workforce committed with dedication and passion to our strategic business objectives. The number of employees has decreased by 4.

8. HEALTH, SAFETY AND SECURITY MEASURES:

The Company is committed to ensuring the health, safety security and well-being of its employees, workers, contractors and other stakeholders, recognising these as critical enablers for achieving

its business objectives and operational excellence. A robust Occupational Health, Safety (OH&S) contractua guideline and Policy are in place to promote a strong safety culture and safeguard the well-being of the workforce across all plants and project sites.

A comprehensive Integrated Management System (IMS) aligned with ISO 45001: 2018 for Occupations Health, Safety (OH&S), ISO 9001: 2015 for Quality (QMS) & ISO 14001: 2015 for Environment (EMS) is in place supported by periodic internal IMS audits and external surveillance audit by certification body at project sites, regional offices and the head office to assess compliance with ISO reguirements and drive continual improvement.

In addition, third-party health, safety and well-being audits are conducted across project sites to strengthen safety performance and governance. CCTV cameras have been installed at various project sites to enhance workplace safety and security monitoring and the same can be used for Al safety surveillance in future. The Company has also deployed the Suraksha App at project sites to record, track and analyse realtime safety data and violations enabling project teams to monitor performance, identify trends and implement corrective and preventive actions for continuous improvement and compliance. Contractor onboarding is governed through a comprehensive pre-qualification process that incorporates stringent OH&S requirements and assessment criteria.

To strengthen workforce capability, external training programmes are conducted by third-party (subject matter experts) covering behaviour-based safety, electrical safety firefighting, work-at-height rescue, first aid and other critical safety topics across all regions with a total participation of 3313 workers from various project sites.

Under the Skill Development Program, worker training, competency assessment, and certification are conducted in collaboration with the Construction Industry Development Council (CIDC) and the Skill Development Council of India. During the year, a total of 420 workers from project sites completed the assessment process and were awarded certifications.

For real estate segment, Safety Leadership and Road Safety training programmes were conducted at all regions and the head office, covering 187 employees, while Advanced Scaffolding Training was also imparted to 105 participants. The Company achieved 100% training coverage for employees and workers in line with the annual training calendar across projects relating to real estate development.

The SHEEL cloud-based training platform continues to support learning and capability development across projects, with more than 3,000 workers trained on various modules covering Occupational Health & Safety (OH&S).

The Company actively commemorates National Safety Day, World Environment Day, Road Safety Week, National Electrical Safety Week and Fire Service Day across its offices, plants and project sites, providing important platforms for promoting awareness and reinforcing safe work practices.

Our safety management system follows a proactive safety cycle that emphasises leadership commitment, consultation and participation across all levels and functions, supporting the Companys aspiration of achieving "Zero Harm" safety culture. The safety audit process serves as a comprehensive evaluation of the occupational health and safety management system, including policies, procedures and programmes designed to prevent workplace incidents and occupational injuries. The Company continues to follow a rigorous safety audit framework aligned with ISO standards and industry best practices.

The Companys holistic wellness programme educates and promotes the importance of a healthy lifestyle, emotional, physical well-being and prevention of diseases. Annual health check-ups, structured health programmes, preventive health programs, and awareness campaigns are periodically conducted. The Company instituted attractive comprehensive Group Mediclaim and Accident Insurance Policies including emergency response facilitation, online OPD facility in alliance with renowned hospitals and diagnostic centres as well as consultation facilities with an in- house doctor.

Our Mental Wellness Programme through Mpower provides confidential mental wellness support through a team of expert counsellors, available round the clock. Our focus is on assisting employees in managing personal and work-related concerns, empowering them to navigate sensitive situations both within and outside the workplace effectively.

Achieved third-party recognition and accolades for health and safety excellence, which reinforces the effectiveness of the Companys safety management systems, operational controls and safety culture. During the year, the Company has received several prestigious national and international recognitions, including the British Safety Council Five Star Rating and Sword of Honour Awards for two project sites, the Five Star Rating and Safety Shield Award from the National Safety Council, the National EHS Award from GSS, 20^th Exceed OHS & Security Award, Gold Award from Greentech Foundation etc. These recognitions reflect the Companys continued commitment to maintaining high standards of health, safety and security across its project operations.

9. CAUTIONARY STATEMENT:

Statements in this report on Management Discussion and Analysis, describing the Companys objectives, projections, estimates, expectations, or predictions may be forward looking, considering the applicable laws and regulations. These statements are based on certain assumptions and expectations of future events. Actual results could, however, differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include finished goods prices, raw materials costs and availability, global and domestic demand supply conditions, fluctuations in exchange rates, changes in Government regulations and tax structure, economic developments within India and the countries with which the Company has business contacts. The Company assumes no responsibility in respect of the forward-looking statements herein, which may undergo changes in future based on subsequent developments, information, or events.