Ajmera Realty & Infra India Ltd Management Discussions

Economic Overview

Global Economy

The global economy remained resilient in 2026 despite increasing geopolitical uncertainty. While the year began with strong momentum, supported by technology investments and easing trade tensions, the Middle East conflict in February 2026 disrupted supply chains, infrastructure, and energy markets. According to the IMF (April 2026), global GDP growth is projected to moderate to 3.1% in 2026 before recovering to 3.2% in 2027. Global inflation is expected to rise from 4.1% in 2025 to 4.4% in 2026 due to higher energy, transportation, and fertiliser costs, before easing to 3.7% in 2027, increasing stagflation risks and the likelihood of tighter monetary policies. Emerging and developing economies are expected to slow from 4.4% in 2025 to 3.9% in 2026, while the United States is projected to grow by 2.3% and the Eurozone by 1.1%. Rising protectionism, elevated sovereign debt, demographic shifts, and climate-related challenges continue to weigh on the global outlook, reinforcing the need for prudent policymaking and stronger international cooperation.

World Growth Projections
Year	Growth (%)
2025	3.4
2026P	3.1
2027P	3.2

(Source https://www.imf.org/en/publications/weo/issues/2026/04/14/world-economic-outlook-april-2026)

Indian Economy

India remained the worlds fastest-growing major economy in FY 2025-26, recording 7.6% GDP growth (Second Advance Estimates) despite an uncertain global environment. Growth was driven by resilient domestic demand, with Private Final Consumption Expenditure (PFCE) growing 7.7% and contributing 56.7% of GDP, while Gross Fixed Capital Formation (GFCF) expanded by over 7%, accounting for 29.7% of GDP, supported by sustained public infrastructure spending and improving private sector investments.

Macroeconomic stability remained a key strength, with average retail inflation moderating to 2.1%, aided by favourable monsoons, record agricultural output, and GST rationalisation.

Although inflation edged up towards the end of the year due to higher global energy prices, the RBI reaffirmed its 4% inflation target through March 2031 and projects 6.6% GDP growth for FY 2026-27.

Infrastructure development continued to strengthen Indias long-term growth story, with the national highway network expanding to 1,46,572 km, railway electrification reaching 99.2%, operational airports increasing to 164, and installed power capacity rising to 509.74 GW, with 51.5% generated from renewable sources. Construction activity remained healthy despite a 3–5% increase in construction costs, reflecting sustained investments across infrastructure and real estate.

Fiscal indicators remained robust, with revenue receipts at 9.2% of GDP, capital expenditure sustained at around 4% of GDP, and GST collections of C 17.4 Lakh Crore during April–December 2025, registering 6.7% year-on-year growth. While the Indian Rupee depreciated by 5.4%–6.5% against the US Dollar amid global volatility, the countrys macroeconomic fundamentals remained resilient.

Looking ahead, Indias projected GDP growth of 6.6%–6.8%, supported by continued infrastructure investments, urbanisation, rising incomes, manufacturing expansion under the PLI scheme, and accelerating digital adoption, is expected to sustain housing demand and real estate development. These structural growth drivers, coupled with increasing homeownership aspirations and ongoing public investment, provide a favourable backdrop for Ajmera to capitalise on emerging opportunities across key urban markets.

GDP Growth
Year	GDP Growth
FY 2022–23	7.6%
FY 2023–24	9.2%
FY 2024–25	6.5%
FY 2025–26 (Advance Estimates)	7.6%
FY 2026–27 (Projected)	6.6% – 6.8%

Industry Overview

Indian Real Estate Sector

Indias real estate sector is one of the largest contributors to the countrys economy and is currently in a phase of structural, rather than purely cyclical, growth.

The market is estimated at around USD 585 billion in FY 2025-26 and is projected to reach USD 926 billion by FY 2030-31, growing at a CAGR of about 9.6%._This growth will be driven by strong corporate leasing, rising REIT-led institutional participation, and the expansion of Global Capability Centres. Liquidity has improved at the top end, supporting asset-led growth.

Indias real estate sector continues to witness strong growth across residential, commercial, retail, hospitality, and industrial segments. The residential segment dominated the market in CY 2025, contributing nearly 70% of total demand, while the Mumbai Metropolitan Region accounted for around 28% of industry revenue. Bengaluru and Pune emerged as key growth markets during FY 2025–26, driven by strong IT-sector demand, expanding Global Capability Centers (GCCs), infrastructure development, and improving urban connectivity. Bengaluru recorded nearly 13% year-on-year property price growth, while demand remained robust across major metros such as Mumbai, Delhi-NCR, Hyderabad, Chennai, and Pune, with Tier-II cities including Indore, Jaipur, and Kochi emerging as new real estate growth hubs.

In CY 2025, the Indian real estate market remained predominantly sales-driven, with the sales model accounting for 69.5% of market share, while the rental segment is expected to expand steadily at a CAGR of 10.99% through CY 2031. Among end-users, individuals and households accounted for 66.1% of transaction value, while demand from corporates and SMEs is anticipated to grow at a CAGR of 11.01%.

On the residential side, the market has shifted decisively toward premium and luxury housing. According to Knight Frank India, homes priced above C 1 Crore made up 50% of total residential sales across the top eight cities in CY 2025, up from 44% a year earlier, driven by rising incomes, NRI participation, and upgrade-led demand.

The commercial office segment remains a powerhouse: total leasing reached 29.9 million sq ft in Q1 2026, up 6% year-on-year, with Global Capability Centres (GCCs) accounting for 48% of leasing activity, reinforcing Indias role as a global hub for technology, R&D, and back-office operations.

Growth Drivers

Shift to Premiumisation: The real estate market is increasingly tilting toward premium and luxury housing, driven by demand for better design, wellness features, sustainability, and integrated community living.

Investor and Institutional Interest: Strong investor confidence, rising institutional participation, and improved transparency are reinforcing long-term sector growth.

Strong Metro Demand: Metropolitan cities, especially Mumbai, continue to dominate due to robust fundamentals, high purchasing power, and limited supply.

Emerging Mid-income and Ultra-luxury housing : The C 2–5 Crore housing segment has emerged as one of the fastest-growing categories in Indias residential real estate market, driven by rising affluence, aspirational homebuyers, and increasing demand for larger, lifestyle-oriented residences. Positioned between mid-income housing and ultra-luxury developments, this segment

Capital inflows have hit record levels. Q1 2026 saw capital inflows of USD 5.1 billion — a 72% jump year-on-year — with developers contributing about 42% and REITs nearly 40% of the total, while Bengaluru, Mumbai, and Delhi-NCR together drew roughly 65% of the inflows. The rise of REITs, SM REITs, and family-office participation is institutionalising what was traditionally a fragmented, family-funded industry.

In a nutshell, the Indian real estate sector in 2026 is maturing into an institutionalised, investor-driven asset class with strong long-term fundamentals, even as it navigates near-term affordability and execution headwinds.

offers an attractive balance of premium amenities, strategic locations, and relative affordability.

End-User Driven Demand: Demand is increasingly led by dual-income households prioritising long-term liveability and quality over speculative investments.

Rise of Tier-2 and Tier-3 Cities: Smaller cities are gaining traction, supported by remote work trends and relatively better affordability.

The Union Budget 2026–27 reinforces a strong infrastructure-led growth strategy, positioning real estate as a key downstream beneficiary.

Public capital expenditure has increased to C 12.2 Lakh Crore, with continued investment in transport networks, urban infrastructure, and intercity connectivity. The proposed development of high-speed rail corridors and the creation of City Economic Regions (CERs) across Tier-2 and Tier-3 cities are expected to unlock new growth corridors and drive real estate demand beyond metro markets.

Additionally, initiatives such as the Infrastructure Risk Guarantee Fund and monetisation of public assets through REITs are likely to enhance liquidity and encourage private sector participation. The budget also emphasises manufacturing expansion, tourism development, and digital infrastructure, which will indirectly support real estate across industrial, logistics, hospitality, and data centre segments.

(Sources: https://www.mordorintelligence.com/industry-reports/real-estate-industry-in-india https://www.constructionweekonline.in/people/real-estate)

Real Estate Performance Across Key Urban Centres

Mumbai

Mumbais residential real estate market continues to demonstrate strong, structurally driven growth. In_ CY 2025, Mumbai recorded_ 1,50,231 property registrations, marking a_6% YoY increase_from 1,41,202 registrations in CY 2024—the highest annual performance in_14 years. Stamp duty collections rose by_11% to C 13,469 Crore, reflecting not just higher volumes but also improving realisation rates across premium and mid-segment segments.

At the same time, compact homes (up to 1,000 sq. ft.) continue to dominate transaction volume, accounting for nearly 80% of transactions, highlighting their relevance to first-time buyers and mid-income segments.

Suburban markets remain the key growth drivers, contributing the majority of registrations due to improved affordability and connectivity. Infrastructure developments such as metro expansion and key road projects are further unlocking new residential corridors. With demand largely end-user driven and supported by stable economic conditions, Mumbais residential market reflects long-term stability, premiumisation, and sustained confidence rather than cyclical growth.

Mumbais commercial real estate market continues to evolve into a mature, institutional-grade asset class, driven by sustained demand from financial services, GCCs, technology firms, and flexible workspace operators. Office leasing remains resilient, supported by a clear shift toward high-quality, Grade A developments that offer strong connectivity, sustainability, and employee-centric design. Institutional capital inflows from global investors, REITs, and private equity further reinforce market depth, aided by improved regulatory transparency.

Infrastructure-led development continues to reshape Mumbais commercial real estate landscape, with enhanced metro connectivity and expanding road networks driving the emergence of multi-nodal business districts beyond traditional hubs. In the Maharashtra Budget 2026–27, the Government unveiled an ambitious urban infrastructure roadmap, including a planned 1,200 km metro network, the C 23,487 Crore Metro Line 11 connecting Wadala to the Gateway of India, and the launch of Metro Lines 2B and 9, significantly strengthening suburban connectivity. The State also approved C 1.5 Lakh Crore worth of road, highway, and urban mobility projects, including the C16,318 Crore Pune–Chhatrapati Sambhajinagar Expressway, while an additional 147 road projects worth C 4,478 Crore and the new PPP Policy 2026 are expected to accelerate infrastructure investment. Supported by these developments, emerging business corridors such as Andheri–Kurla, Powai, and Navi Mumbai are gaining prominence alongside established markets like BKC, Lower Parel, and Worli, reinforcing Mumbais position as one of Asias most dynamic, future-ready, and resilient commercial real estate destinations.

Key Trends Shaping Mumbai Real Estate

Robust demand momentum: Property registrations crossed 1.5 Lakh in CY 2025, reaching a 14-year high, driven by strong residential demand, growing preference for premium housing, and rising buyer confidence.

Infrastructure-led growth corridors: Expanding metro networks, the Mumbai Trans Harbour Link (MTHL), and major road and highway projects are accelerating development across Navi Mumbai, Thane, Powai, and other emerging micro-markets.

Supportive policy environment: Government-led infrastructure investments, stable stamp duty rates, and new public-private partnership (PPP) initiatives continue to strengthen the real estate ecosystem and enhance market attractiveness.

Improving price realisation: Premium and mid-segment housing markets are witnessing steady appreciation, supported by limited inventory, strong end-user demand, and higher transaction values.

Resilient commercial market: Mumbai remains a leading office destination, with strong occupancy levels, growing demand for ESG-compliant workplaces, and increasing adoption of smart, amenity-rich commercial developments.

Healthy investment activity: Sustained transaction volumes, rising institutional participation, and strong demand for ready-to-move-in properties reflect improving market liquidity and investor confidence.

Favourable supply-demand balance: Controlled new launches, undersupply in key mid-income segments, and continued demand across affordable and luxury housing categories are supporting pricing strength across the market.

Key Drivers of Residential Real Estate Growth

Redevelopment Momentum: Transformation of ageing buildings into modern housing, supported by favourable FSI norms, is unlocking supply in prime locations.

Infrastructure-Led Connectivity: Metro expansion, Coastal Road, and bridge projects are improving accessibility and driving demand across emerging corridors.

Premium & Luxury Demand: Strong traction in high-end housing, led by HNIs and NRIs seeking quality assets and long-term value.

Lifestyle Upgradation: Increasing preference for larger homes (2.5–3 BHK), gated communities, and projects offering wellness, sustainability, and lifestyle amenities.

Key Drivers of Commercial Real Estate Growth

Flexible & Grade A Workspaces: Rising demand for modern, tech-enabled, and sustainable office environments that support hybrid work models.

GCC & BFSI Expansion: Continued leasing demand from Global Capability Centres and financial services firms reinforces Mumbais position as a corporate hub.

Logistics & Data Centre Growth: E-commerce, 3PL, and manufacturing expansion are driving demand for warehousing and digital infrastructure.

Retail & Mixed-Use Evolution: Shift toward integrated developments that combine office, retail, F&B, and leisure to drive experience-led consumption.

Key Government Initiatives Shaping Mumbai Real Estate

AI-Driven Approvals: MCGM is deploying AI-based systems to fast-track building approvals, improving speed, efficiency, and transparency.

UDCPR 2034 Reforms: Higher FSI norms and relaxed regulations are enabling vertical growth and making redevelopment projects more viable.

Cluster Redevelopment Push: Government incentives and higher FSI are accelerating redevelopment of old and dilapidated buildings.

Infrastructure Expansion: Projects such as metro lines, the Mumbai Trans Harbour Link (Atal Setu), and the Coastal Road are enhancing connectivity and unlocking new growth corridors.

Affordable Housing Initiatives: Schemes such as MHADA, PMAY, and SRA are promoting housing accessibility for mid- and lower-income segments.

Regulatory Transparency: MahaRERA is strengthening governance, ensuring project accountability, and boosting buyer confidence.

Digital Integration: Platforms like the NAREDCO ONE app are improving coordination between developers and authorities.

‘Third Mumbai Development: Strategic expansion beyond the city core to create new economic hubs and decongest existing regions.

Stamp Duty Incentives: Periodic reductions and incentives are supporting demand and accelerating project uptake.

Outlook

Mumbais residential real estate market outlook for FY 2025-26 remains stable and balanced. Rising housing supply and new project launches are expected to benefit homebuyers with more competitive, realistic prices. Redevelopment will continue to be a key growth driver, unlocking land within the city and boosting supply. Demand is likely to remain steady across both premium and mid-income segments, with luxury housing holding momentum and mid-segment offering value opportunities. Supported by infrastructure improvements and strong end-user demand, the market is transitioning toward a more sustainable, equilibrium-driven growth phase with long-term stability.

Bengaluru

In CY 2025, Bengaluru recorded approximately 61,000 residential unit launches, marking a strong 22%–23% year-on-year increase and emerging as one of the highest-performing residential markets in India. The city accounted for nearly 18% of Indias total residential launches during the year, supported by robust demand from the IT sector, infrastructure expansion, and growing premium housing preference. While overall rental levels remained relatively stable across the city, select micro-markets in the eastern and southeastern corridors witnessed moderate rental appreciation driven by sustained residential demand.

Bengaluru solidified its position as Indias leading office market, with 28.7 million sq. ft. of leasing activity, accounting for 59% of the annual growth. Demand remained robust, driven by Global Capability Centres (GCCs), IT, and BFSI players. Notably, 97% of leasing occurred in Grade A assets, underscoring a strong preference for high-quality, future-ready workspaces.

Despite a 16% decline in cross-border investments into Indian real estate to USD 3.7 billion, Bengaluru emerged as the top investment destination, attracting USD 2.2 billion. Capital inflows remained concentrated in office assets, while diversification into logistics, warehousing, and data centres continued to gain momentum.

In the REIT landscape, Bengaluru remained a backbone of Indias market in CY 2025, supported by sustained office demand and continued interest from global technology occupiers. The citys mature commercial ecosystem has made it a key contributor to listed REIT portfolios, offering stable rental yields and strong visibility on future cash flows.

Key Trends Shaping Bengaluru Real Estate

Shift to End-User Driven Demand: In Bengaluru, homebuying is increasingly driven by long-term living preferences rather than speculative investment, with buyers prioritising comfort, community, and stability.

Infrastructure-Led Growth: Expansion of metro networks, highways, and ring roads continues to reshape demand, with well-connected corridors witnessing stronger price resilience and buyer interest.

IT & Employment Hubs Driving Demand: Proximity to tech parks and business districts, especially in East and North Bengaluru, remains a key factor influencing both residential demand and rental activity.

Rise of Rental Demand: Strong influx of working professionals is reviving rental markets, particularly in micro-markets with high connectivity and job concentration.

Selective Investment Approach: Investors are becoming more strategic, focusing on locations with visible infrastructure development and long-term growth potential rather than broad-based buying.

Preference for Low-Density Living: Buyers are increasingly favouring less crowded developments with open spaces, better planning, and improved liveability.

Sustainability as a Core Factor: Demand is rising for projects with green features such as rainwater harvesting, open landscapes, and eco-friendly infrastructure.

Emergence of Peripheral Growth Corridors: Outskirts and green-edge locations are gaining traction, offering a balance between access to infrastructure and quality of life.

Land & Plotted Development Appeal: Villa plots and low-density layouts are witnessing stronger long-term preference due to land scarcity and better appreciation potential.

Key Drivers of Residential Real Estate

Premiumisation of Demand: In Bengaluru, demand is increasingly skewed toward luxury and high-end housing, with nearly half of new launches targeting premium buyers, while demand for affordable housing has softened.

Price Appreciation Momentum: Bengalurus residential market continued to witness robust price appreciation in FY 2025–26, driven by sustained demand for premium and under-construction housing. Premium under-construction projects recorded capital value growth of approximately 13%–15% year-on-year, with East and North Bengaluru emerging as the strongest-performing micro-markets, registering growth of nearly 23%–24%. Completed premium developments also delivered healthy appreciation of around 12%–14%. Reflecting evolving buyer preferences, the citys luxury housing segment gained significant momentum during FY 2025-26, with luxury launches surpassing mid-income launches for the first time and accounting for nearly 49% of total new project launches.

Tech-Led Housing Demand: The continued inflow of IT professionals, along with rising homeownership aspirations among millennials and Gen Z, is driving residential absorption.

Emerging Micro-Markets: East, South, and North Bengaluru remain key growth corridors, supported by infrastructure and employment hubs.

Inventory Realignment: Healthy demand has kept inventory levels under control, even as developers increase supply, particularly in the premium segment.

Key Drivers of Commercial Real Estate

GCC and IT-Led Demand: Expansion of Global Capability Centres (GCCs) and technology firms continue to anchor office space absorption.

Shift to Flexible & Sustainable Workspaces: Growing preference for co-working, managed offices, and green-certified buildings is reshaping leasing trends.

Infrastructure-Backed Growth: Enhanced metro connectivity and large-scale infrastructure developments are improving access to key business districts.

Rising Institutional Participation: The growing role of Real Estate Investment Trusts (REITs) is driving capital inflows and increasing institutional ownership in commercial assets.

Key Government Initiatives Shaping Bengaluru Real Estate Premium FAR Framework: The Karnataka government has formalised Premium Floor Area Ratio (FAR) under the Karnataka Town and Country Planning Act, enabling developers to build beyond permissible limits by paying a premium. This promotes vertical development, optimises land use, and generates dedicated funds for infrastructure.

Greater Bengaluru Authority (GBA): The establishment of the GBA under the 2024 Act has restructured city governance. Acting as an apex body, it integrates multiple civic agencies to enable coordinated planning, faster decision-making, and efficient infrastructure delivery.

Land Reforms for Industrial Use: Amendments to the Karnataka Land Revenue Act (2024) simplify land conversion norms, allowing up to 2 acres of agricultural land to be used for industrial purposes without formal conversion, provided master plan compliance is met, thereby boosting ease of doing business.

Revised Buffer Regulations: Updated zoning norms classify stormwater drains with defined buffer zones, ensuring environmental protection while enabling planned urban development and improved flood resilience.

Digitised Property Registration: The Registration (Karnataka Amendment) Bill, 2025, introduces digital, streamlined, and citizen-friendly property registration processes, enhancing transparency, reducing delays, and improving overall transaction efficiency.

Outlook

Bengaluru continues to stand out as one of Indias most compelling real estate investment destinations, supported by strong underlying economic drivers and a progressive, investor-friendly policy environment. Recent legislative and regulatory reforms have streamlined processes, reduced inefficiencies, and addressed long-standing bottlenecks in development and asset management.

These structural improvements are enhancing transparency, accelerating project execution, and strengthening investor confidence, collectively positioning the city as a future-ready, scalable, and high-potential real estate hub.

Pune

Pune continued to strengthen its position as one of Indias most resilient and high-growth real estate markets during FY 2025-26, supported by robust demand from the IT sector, expanding Global Capability Centers (GCCs), and ongoing infrastructure development. The city emerged as the countrys highest-selling residential market in CY 2025, recording over 81,000 housing sales with a transaction value of approximately C 63,000 Crore. Average home prices reached C 78 Lakh, reflecting a 44% increase since CY 2021, while the overall market value expanded by nearly 71% over the same period.

The market is increasingly characterized by premiumization, with demand shifting towards mid- and premium-segment housing, larger apartment configurations, and transit-oriented developments. Major infrastructure projects, including the Pune Metro expansion, Outer Ring Road, and the proposed international airport, are enhancing connectivity and unlocking growth across emerging micro-markets such as Hinjewadi, Wakad, Kharadi, and Punawale. Supported by healthy rental yields, strong end-user demand, and a balanced supply environment, Pune remains well-positioned for sustainable long-term growth, with residential prices expected to appreciate steadily over the coming years.

Key Trends Shaping Pune Real Estate

Infrastructure-Led Growth: Major projects such as Metro Phase-II, the Pune Ring Road, airport expansion, underground road networks, and the Mula-Mutha Riverfront Development are improving connectivity and unlocking new development corridors.

Premiumisation of Housing Demand: Homebuyers are increasingly opting for larger residences, premium homes, and lifestyle-focused developments, particularly in the C 1 Crore-plus segment.

Sustainable and Smart Living: Demand is rising for projects incorporating smart home technologies, energy-efficient systems, green building features, and ESG-compliant infrastructure.

Emergence of New Growth Corridors: Micro-markets such as Undri, Moshi, Tathawade, Ravet, Punawale, and Chikhali are gaining traction due to affordability, infrastructure upgrades, and proximity to employment centres.

Integrated Township Developments: Buyers increasingly prefer self-sustained communities that combine residential, retail, recreational, and social infrastructure within a single ecosystem.

Institutional Investment Momentum: Growing investments in Grade-A offices, data centres, warehousing, and mixed-use developments are enhancing Punes commercial real estate landscape.

Key Drivers of Residential Real Estate

Strong technology-led employment growth supporting sustained end-user demand.

Relative affordability compared to Mumbai attracting both homebuyers and long-term investors.

Expanding industrial and economic corridors creating new residential catchments across peripheral locations.

Continued urban migration driving demand for quality housing across income segments.

Rising disposable incomes and lifestyle aspirations encouraging home upgrades and ownership.

Affordable housing programs broadening access to homeownership for first-time buyers.

Key Drivers of Commercial Real Estate

Expansion of Global Capability Centres (GCCs) and corporate occupiers fueling demand for premium office spaces.

A diversified economic base spanning technology, automotive, engineering, manufacturing, and services sectors.

Growing adoption of flexible workplace models driving demand for co-working and managed office solutions.

Improved mobility infrastructure enabling the emergence of new commercial clusters.

Evolution of organized retail formats supporting investment in modern retail and mixed-use developments.

Development of innovation-focused ecosystems around technology, EVs, and knowledge-based industries.

Key Government Initiatives Shaping Pune Real Estate

Strategic investments under Maharashtras long-term growth vision to strengthen Punes position as a technology, manufacturing, and innovation hub.

Metro Phase-II development aimed at improving urban mobility and supporting transit-oriented growth.

Large-scale urban infrastructure projects focused on road connectivity, riverfront enhancement, and civic infrastructure modernization.

Pradhan Mantri Awas Yojana (PMAY) 2.0 supporting housing accessibility across key demand segments.

Promotion of EV and emerging technology ecosystems to attract investment and employment generation.

Regulatory reforms and transparency measures enhancing ease of doing business and buyer confidence.

Airport infrastructure expansion strengthening regional connectivity and supporting long-term economic growth.

Outlook

Punes real estate market remains highly stable, defined by sustained IT-driven growth, strong rental yields, and a decisive buyer shift toward integrated townships by branded developers. Steady annual capital appreciation of 5-10% continues to outpace inflation, with average property values heavily bolstered by active metro and infrastructure expansions.

Company Overview

Ajmera Realty & Infra India Ltd. (ARIIL) is a leading Indian real estate developer with a legacy of over five decades, known for pioneering large-scale township developments and transforming emerging micro-markets into established residential hubs. With over 20.7 million sq. ft. delivered and 46,000+ families served, the Company has built a strong reputation for execution and trust.

ARIIL follows a diversified and capital-efficient four-bucket business model comprising greenfield developments on owned land, joint ventures and development agreements, selective acquisitions, and redevelopment projects, particularly in Mumbai, which remains a key growth driver. Its strategic ‘5X Roadmap focuses on scaling operations through asset-light expansion, unlocking its 10.4 million sq. ft. of own land bank, and increasing both geographic presence and project pipeline. The Company has a strong footprint across MMR and Bengaluru, with a growing presence in Pune, offering residential products across segments and select commercial developments. Flagship land parcels in Wadala and Kanjurmarg provide significant visibility into long-term value.

ARIIL stands out for its disciplined financial management (0.53x debt-to-equity in FY26), early project deliveries, and consistent sales growth. Its commitment to ESG, green building practices, and transparent governance further strengthens its positioning as a future-ready, sustainable real estate platform.

During FY 2025-26, the Company delivered a strong operational performance, supported by robust demand, successful project launches, and disciplined execution across its key markets. The Company recorded its highest-ever sales of C 1,701 Crore and collections of C 1,103 Crore, marking a year-on-year growth of 57% and 71%, respectively. Additionally, the sales volume reached 6.60 Lakh sq. ft., reflecting sustained customer confidence and healthy market traction. New launches were the primary growth engine, contributing over 82% of total sales, led by strong demand for projects such as Ajmera Manhattan 2 (Wadala), 33Fifteen (Bandra), Ajmera Solis (Vikhroli), and Vann by Ajmera (Versova). Demonstrating superior execution capabilities, the Company delivered Ajmera Prive (Juhu) one year ahead of its RERA timeline and secured Occupation Certificates for key developments including Ajmera Lugaano & Florenza (Bengaluru) and Ajmera Eden (Ghatkopar). During the year, the revised master plan for the Boutique Office development at Wadala significantly enhanced the projects development potential, increasing its estimated Gross Development Value (GDV) from approximately _1,800 Crore to _7,261 Crore. The Company further strengthened its growth pipeline through asset-light projects worth of C 2,433 Crore across Mumbai, Bengaluru, and Pune, while maintaining a robust launch pipeline of eight projects with an estimated GDV of approximately C 6,508 Crore. With multiple asset-light opportunities under evaluation, the Company remains well-positioned to drive future growth, expand its market presence, and create long-term stakeholder value.

Projects	Location	Sales volume (Sq.Ft.)	Sales value ( D Crore)	Avg Realization Rate ( D /sq.ft.)	Collections (D Crore)
Lugaano & Florenza	Bengaluru	4,865	5	11,239	41
Iris	Bengaluru	38,500	47	12,127	81
Vihara	Mumbai	25,268	47	18,557	37
Marina	Bengaluru	16,635	19	11,670	47
Manhattan 2	Mumbai	2,55,175	836	32,746	134
33Fifteen	Mumbai	11,366	77	67,432	18
Solis – Phase 1	Mumbai	2,10,687	462	21,950	88
Vann by Ajmera	Mumbai	3,177	14	45,229	1
Total		6,60,246	1,701	25,760	1,103

Financial Overview

FY 2025-26 was a year of strong operational momentum and disciplined financial performance for the Company. Revenue stood at C 1,098 Crore, registering a 46% year-on-year growth, supported by steady project execution, resilient customer demand, and successful new launches across key markets.

Profitability improved notably, with EBITDA grew by 25% y-o-y to C 306 Crore, translating into an EBITDA margin of 28%. Profit After Tax (PAT) increased by 24% to C 157 Crore, with margins of 14%, reflecting operational efficiency and a favourable product mix.

Consequently, our collection efficiency improved to 65%, up from 60% in FY 2024-25, providing the liquidity to significantly outperform our leverage targets. As a result, we achieved a Debt-to-Equity ratio of 0.53x, well below our annual guidance of 0.85x. This disciplined capital structure further strengthens our balance sheet and provides the requisite capital agility to fund our expansion sustainably.The weighted average cost of debt reduced significantly from 12.20% p.a. to 11.15% p.a. during the year, reflecting improved borrowing efficiency and prudent financial management.

This strengthened financial position provides ample headroom to fund the Companys robust launch pipeline and supports its strategy of sustained, disciplined growth and long-term value creation.

Abridged Consolidated Profit and Loss Account

(Rs in Crore)

Particulars	FY 2025-26	FY 2024-25
Revenue from Operations	1,090	738
Other Income	7.65	15
Total Income	1098	753
Total Expenditure	869	586
Profit Before Tax (PBT)	229	167
Tax Expense	72	41
Profit After Tax (PAT)	157	126
Non-Controlling Interest	7	0
Adjusted PAT	150	126
Basic EPS (C /share)	7.61	6.80
Diluted EPS (C /share)	7.61	6.80

Abridged Consolidated Balance Sheet]

(Rs in Crore)

Particulars	FY 2025-26	FY 2024-25
Equity & Liabilities
Shareholders Funds	1,399	1,207
Minority Interest	120	117
Borrowings	711	677
Other Liabilities	342	228
Provisions	22	26
Total Liabilities	2,594	2,255
Assets
Trade Receivables	424	316
Inventories	1,495	1,292
Loans & Advances	116	108
Cash & Bank Balances	87	101
Other Assets	472	438
Total Assets	2,594	2,255

Consolidated Key Financial Ratios

Particulars	FY 2025-26	FY 2024-25	Variance	Reasons
Current Ratio	6.28	5.96	5%	Due to increase in Current Assets
Debt-Equity Ratio (Net of Cash)	0.45	0.48	(6%)	Better Debt management
Debt Service Coverage Ratio	0.97	0.65	49%	Better Debt management
Return on Equity (ROE)	11.50%	12.16%	(5%)	Due to increase in input cost
Inventory Turnover Ratio	0.78	0.60	30%	Better inventory management
Trade Receivables Turnover Ratio	2.95	2.78	6%	Due to higher realization of trade receivable
Trade Payables Turnover Ratio	8.91	6.62	35%	Due to improved operating cash flow

Human Resources

At Ajmera Realty, human capital remains the cornerstone of sustained growth and long-term success. The Company is committed to attracting, nurturing, and retaining high-quality talent across the real estate value chain, from business development and sales to project execution and delivery. Backed by strong brand equity, Ajmera Realty continues to attract top-tier professionals and invests consistently in capability building through structured learning and development initiatives.

The Human Resources function plays a strategic role in aligning workforce capabilities with evolving business priorities and market dynamics. Reinforcing its employee-centric philosophy, the Company has been recognised as a Great Place to Work, reflecting its commitment to fostering an inclusive, engaging, and high-performance work environment.

The Company has instituted a robust framework for employee development, focusing on continuous learning, performance management, and career progression. Regular feedback mechanisms, structured appraisals, and targeted training programmes ensure that employees are equipped with the skills required to excel in a dynamic industry.

Ajmera Realty also places strong emphasis on recognising and rewarding excellence through well-defined employee recognition initiatives, fostering motivation, engagement, and a sense of ownership among its workforce.

Ensuring the health, safety, and well-being of employees is a core priority. A dedicated safety team conducts regular site inspections, audits, and risk assessments to maintain high safety standards across operations. Beyond physical safety, the Company actively promotes mental well-being by encouraging work-life balance, providing supportive workplace policies, and enabling access to employee welfare resources.

Ajmera Realty promotes a culture of inclusivity, equality, and open communication, where employees are empowered irrespective of their background, gender, or experience. The organisation encourages cross-functional collaboration and participation in initiatives beyond defined roles, fostering innovation and creative thinking.

This inclusive and transparent communication framework enables seamless coordination across teams, strengthens organisational cohesion, and supports a collaborative, future-ready workplace.

Risk Management

The Company adopts a proactive and forward-looking approach to risk management, continuously monitoring macroeconomic trends, regulatory developments, and geopolitical factors that may influence the real estate sector. Recognising that market fluctuations, economic slowdowns, and external uncertainties can affect demand dynamics, the Company has instituted robust risk-mitigation frameworks to enhance resilience and agility.

Through disciplined planning, diversified project portfolios, and prudent financial and operational strategies, the Company effectively navigates evolving market conditions while safeguarding stakeholder interests. This structured approach enables it to sustain growth momentum and reinforce its position as a reliable and responsible player in the real estate industry.

Risk Category	Risk Description	Mitigation Strategy
Economic Risk	Volatility in macroeconomic conditions impacting property demand, cash flows, and overall profitability.	Portfolio diversification, continuous market intelligence, and maintaining financial resilience.
Regulatory Risk	Complex regulatory environment with evolving policies and approval-related challenges affecting project timelines.	Robust compliance frameworks, proactive policy tracking, and strong internal governance controls.
Competition Risk	Intensifying competition from established developers and emerging players leading to pricing and market share pressures.	Product differentiation, brand strengthening, and customer-centric engagement strategies.
Financial Risk	High capital intensity of projects combined with exposure to interest rate fluctuations and funding constraints.	Prudent capital allocation, diversified funding sources, and active monitoring of financing costs.
Social & Environmental Risk	Potential reputational and financial impact arising from inadequate management of environmental and social responsibilities.	Adoption of sustainable practices, ESG integration, and responsible development initiatives.
Technological Risk	Disruption from digital platforms, proptech innovations, and evolving customer engagement channels.	Technology adoption, digital integration, and enhancement of online customer interfaces.

Internal Control Systems

The Company maintains a robust and well-defined internal control framework designed to ensure the integrity of financial reporting, efficiency of operations, and adherence to applicable laws and regulations. Leveraging an integrated Enterprise Resource Planning (ERP) system, key processes are standardised and automated, enabling greater transparency, consistency, and operational efficiency.

Thesecontrolsfacilitateeffectivemonitoringofassetacquisition, utilisation, and safeguarding, while also supporting informed decision-making. In parallel, the Company has established a structured risk management mechanism to promptly identify, assess, and mitigate potential risks. This integrated approach ensures early detection of issues, prompt corrective action, and sustained alignment with the Companys strategic and compliance objectives.

Outlook

The outlook for Ajmera Realty & Infra India Ltd. (ARIIL) is anchored by our ambitious ‘5x Road Map strategy, aimed at scaling operations through project expansion, geographic diversification, and enhanced execution efficiency, while adopting a capital-efficient, asset-light growth model. We enjoy strong revenue visibility, with Occupancy Certificate

(OC) received projects expected to contribute C 66 Crore within the next 3 months, while ongoing projects are expected to generate C 4,042 Crore over the subsequent 48 months. Our total revenue potential, encompassing existing and planned launches, stands at a significant C 10,432 Crore.

A key growth driver remains the unlocking of value from its strategically located land bank in Mumbai. The Wadala development alone now carries an estimated Gross Development Value (GDV) potential of approximately C 17,841 Crore and total development potential of 47.2 Lakh sq. ft. across residential, uber residential, and boutique commercial developments. Simultaneously, the 55-acre Kanjurmarg land parcel represents a significant long-term opportunity with an estimated GDV potential of C 22,618 Crore and total development potential of 71.7 Lakh sq. ft.

The Company continues to expand through asset-light opportunities, including JVs, JDAs, and redevelopment projects across high-demand urban markets. As part of its scale-up strategy, Ajmera aims to expand from 7 locations to 12 locations while increasing project multiplicity from 9 projects to 17 projects. The launch pipeline for FY 2026-27 stands at an estimated GDV of C 6,508 Crore, further strengthening future growth visibility.

Backed by a healthy balance sheet, disciplined capital allocation, and strong cash flow visibility, the Company remains well-positioned to drive sustainable growth. The estimated cash flow potential from ongoing projects, upcoming launches, and other avenues is expected to exceed C 3,150 Crore over the lifecycle of projects, providing a strong foundation for long-term value creation and strategic expansion.

Cautionary Statement

In this Management Discussion and Analysis, statements describing the Companys objectives, projections, estimates, expectations or predictions may be ‘forward-looking statements, within the meaning of applicable laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could affect the Companys operations include raw material availability and prices, cyclical demand and pricing in the Companys principal markets, changes in Government regulations and tax regimes, economic developments in India and in the countries in which the Company conducts business, and other incidental factors.