Anant Raj Ltd Management Discussions

GLOBAL ECONOMY

The global economy remained resilient in 2025, despite a challenging environment marked by shifting trade policies, geopolitical uncertainties, and uneven regional growth trends. Easing inflationary pressures, improving financial conditions, and rising investments in technology, particularly artificial intelligence (AI), supported economic momentum. According to the International Monetary Fund (IMF), global Gross Domestic Product (GDP) stood at 3.4% in 2025. Advanced economies recorded 1.9% growth, while emerging markets and developing economies (EMDEs) grew at 4.4%.

However, the global outlook turned increasingly uncertain following the escalation of geopolitical conflicts in key regions, particularly the Middle East in early 2026. Disruptions to critical energy infrastructure and the closure of the Strait of Hormuz impacted global energy supplies and supply chains, resulting in higher crude oil prices and renewed concerns around inflation, rising input costs, and financial stability.

Amid this evolving environment, global real estate markets are witnessing rapid transformation, driven by urbanisation, infrastructure investments, and demand for quality assets. Rapid growth in AI adoption, cloud computing, and digital transformation is accelerating investments in data centres, positioning digital infrastructure as one of the fastest-growing real estate asset classes globally.

Outlook

Global economic growth is expected to moderate to 3.1% in 2026 and 3.2% in 2027. While emerging technologies and AI are expected to create new opportunities, risks related to trade disruptions, energy price volatility, and geopolitical tensions will continue to influence the global growth trajectory. Global inflation is expected to rise marginally to 4.4% in 2026 from 4.1% in 2025, driven by higher energy and food prices, before easing to 3.7% in 2027.

(Source: IMFs World Economic Outlook April 2026)

INDIAN ECONOMY

Despite global economic headwinds, India continues to stand out as one of the worlds fastest-growing major economies. Indias GDP growth stood at 7.7% in FY 2025-26, supported by robust domestic consumption, sustained infrastructure investments, digital transformation, and continued momentum in manufacturing-led growth.

Government initiatives such as Make in India, Production Linked Incentive (PLI) schemes, and Viksit Bharat 2047 continue to strengthen domestic manufacturing capabilities, infrastructure creation, and economic self-reliance. The Union Budget 2026-27 further reinforced this momentum with a public capital expenditure allocation of 12.2 lakh crore, aimed at boosting infrastructure development, enhancing competitiveness, and driving long-term economic growth.

India is undergoing a significant technology-led transformation, driven by expanding digital infrastructure, increasing cloud adoption, rising data centre investments, and accelerated adoption of AI. Backed by initiatives such as Digital India and a growing innovation ecosystem, India is reinforcing its position as a global hub for digital capabilities and next-generation technologies.

Macroeconomic fundamentals remained strong, with inflation easing from 4.6% in FY 2024-25 to 2.1% in FY 2025-26, supported by benign food prices, GST rate rationalisation, and stable supply conditions. In response to easing inflationary pressures, the Reserve Bank of India (RBI) reduced the repo rate by 125 basis points (bps) to 5.25%, supporting liquidity and economic activity.

Indias economic outlook remains positive amid heightened geopolitical tensions and trade uncertainties. According to the IMF, the Indian economy is expected to grow at 6.5% in both FY 2026-27 and FY 2027-28, supported by resilient domestic demand, expanding investments in infrastructure and digital technologies, low inflation, and a gradual recovery in private investments and exports.

INDUSTRY OVERVIEW

Indias Real Estate Sector

Indias real estate sector plays a pivotal role in the countrys economic growth and transformation. The sector is the second-largest employment generator after agriculture and continues to benefit from rapid urbanisation, rising household incomes, increasing nuclearisation of families, infrastructure expansion and favourable policy support. The sectors market size is estimated at USD 650 billion in FY25 from USD 180 billion in FY20 and is projected to reach USD 1 trillion by FY30.

(Source: https://www.ibef.org/download/1779796640_Real-Estate-PPT-February-2026.pdf)

Growth Drivers

Rapid Urbanisation

Indias burgeoning urban population continues to create strong demand for real estate development. According to the World Bank, Indias urban population is expected to reach 600 million by 2036, contributing nearly 70% of the countrys GDP.

Increasing Infrastructure Investments

Sustained infrastructure push continues to unlock significant opportunities for the real estate sector. The Union Budget 2026-27 envisaged a public capital expenditure allocation of 12.2 lakh crore towards infrastructure development. Further, expanding transportation networks, urban development initiatives, and investments in smart infrastructure will strengthen demand across residential, commercial, logistics, and emerging asset classes.

E-commerce Expansion

The rapid growth of e-commerce, digital consumption, and organised retail is accelerating demand for modern logistics and warehousing infrastructure. Indias e-commerce warehousing market, valued at USD 10.0 billion in 2025, is expected to reach USD 39.1 billion by 2034, growing at a CAGR of 16.42% during 2026-34.

Government Initiatives and Policy Reforms

Supportive government initiatives, including higher capital expenditure, PMAY-U 2.0, and SWAMIH Fund, among others, are expected to propel demand for housing and real estate development. Additionally, progressive reforms such as 100% FDI in township development and the National Real Estate Policy 2025 are enhancing transparency, investment attractiveness, and long-term growth prospects for the sector.

Technology Integration

Rapid technological advancements and digital transformation are reshaping the future of real estate development.

Residential Real Estate

Decline in inventory overhang

Indias residential real estate sector witnessed improving demand-supply dynamics, supported by healthy absorption levels and new launches. Strong end-user demand, particularly across premium and quality developments, has resulted in a reduction in unsold inventory levels across key markets, reflecting greater market stability and improved fundamentals.

Premium segment growth

In 2025, sales of homes priced above Rs.10 million recorded strong growth, increasing by 14% YoY. In Q1 2026, sales in the above

Rs.10 million segment grew by 11% YoY, making it a major driver of overall sales growth.

Market dynamics

Indias residential real estate market witnessed mixed trends across key cities in 2025, with select markets such as Delhi-NCR, Chennai, Hyderabad, Mumbai, and Ahmedabad maintaining growth momentum, supported by steady demand and improving buyer sentiment. While some markets witnessed temporary moderation in sales activity, the sector remains resilient, backed by strong fundamentals, rising urbanisation, and sustained end-user demand.

Outlook

Favourable policy measures, including lower interest rates, GST rationalisation, and continued government focus on housing and infrastructure development, are expected to strengthen affordability, improve liquidity, and support demand in the real estate sector. Rising urbanisation, increasing disposable incomes, preference for quality developments, and expanding connectivity infrastructure are expected to drive growth across key markets. With improving consumer confidence and growing demand for premium and integrated developments, the sector remains well-positioned for long-term expansion.

Commercial Real Estate

Office Leasing Market

Indias office market achieved a record 8.03 million sq. m. (86.4 million sq. ft.) of gross leasing activity in 2025, representing 20% growth over 2024. Bengaluru, Pune and Kolkata were the leading markets.

Leasing momentum remained strong in Q1 2026, with the office market recording a new high of 2.77 million sq. m. (29.9 million sq. ft.), surpassing the previous quarterly peak recorded in Q1 2025 by 6%. Bengaluru, Mumbai (MMR) and Hyderabad led office leasing activity during the period.

Grade A Office Assets and GCCs-led Demand

Grade A office assets accounted for 91% of total leasing activity in 2025. Global Capability Centres (GCCs) emerged as the largest demand driver, accounting for approximately 3.0 million sq. m. (32.6 million sq. ft.) of office leasing and continued to be the primary demand driver in Q1 2026, accounting for a record 1.34 million sq. m. (14.4 million sq. ft.).

NCR Real Estate Market

Residential

NCRs residential market evolved significantly in 2025, driven by rising demand for premium and luxury housing, improving infrastructure connectivity, and increasing preference for integrated developments. The shift towards higher-value homes remained a key trend, with Gurugram continuing to lead the NCR residential market, accounting for 48% of annual sales. Noida and Greater Noida together contributed 34% of annual residential launches and 32% of total sales, reinforcing their position as NCRs second-largest housing cluster. Ghaziabad also maintained a steady presence, accounting for 16% of overall residential sales in 2025.

Commercial

Delhi-NCR remained a key commercial real estate market in 2025, supported by strong demand from Global Capability Centres (GCCs), technology companies, and India-facing enterprises. Gurugram maintained its leadership position as the regions dominant office hub, accounting for 61% of annual leasing transactions. GCCs boosted demand in Gurugram, contributing 38% of transactions, followed by India-focussed enterprises at 29%. Noida accounted for 27% of annual leasing activity, supported by improving infrastructure and growing occupier interest.

(Source: Knight Frank Research)

Hospitality Sector

Indias hospitality sector demonstrated strong momentum in FY 2025-26, supported by sustained domestic leisure travel, rising business travel and increasing demand from meetings, incentives, conferences and exhibitions (MICE), weddings and large-scale social events. The sector is expected to benefit from strong occupancy levels, with pan-India premium hotel occupancy projected to remain at 72-74% in FY 2025-26, compared with 70-72% in FY 2023-24 and FY 2024-25.

The strong growth trajectory is expected to support expansion in hospitality real estate, with increasing focus on sustainability, eco-friendly developments and experiential accommodation offerings. The sector is further supported by favourable government initiatives, including 100% FDI in hospitality-related developments, tourism promotion programmes such as Swadesh Darshan and PRASAD, tax incentives for hotels, and higher Floor Space Index (FSI) norms.

(Source: ICRA)

Data Centre Industry

India is witnessing robust growth in the data centre industry, driven by rapid digital transformation and unprecedented surge in data generation, cloud adoption, and advanced computing requirements. As the second-fastest-growing digital economy globally, Indias expanding technology ecosystem creates enormous opportunities for digital infrastructure development.

The sectors growth is being accelerated by the widespread adoption of cloud computing, artificial intelligence (AI), Internet of Things (IoT), big data analytics, rising smartphone penetration, and the transition towards high-speed 5G networks. These advancements are driving the need for high-capacity data storage and computing infrastructure.

Supported by expanding digital infrastructure, favourable policy initiatives, and increasing investments from global technology players and cloud service providers, India has emerged as a preferred destination for data centre development. The countrys data centre capacity is expected to expand significantly from around 1.5 GW currently to 5-8 GW by 2030, positioning India as a key global hub for cloud, AI, and digital infrastructure investments. Key markets include Mumbai, Chennai, Bengaluru, Hyderabad, Pune, and the Delhi NCR region.

Government Initiatives and Policy Support

Indias data centre industry continues to benefit from a progressive regulatory framework. Recognising data centres as critical digital infrastructure, the Government has granted infrastructure status to the sector, enabling improved access to long-term financing and supporting faster capacity expansion.

Several initiatives, including Digital India, evolving data protection and localisation regulations, National E-Commerce Policy, updates to the IT Act, India Data Centre Policy, and state-level policies are strengthening demand for domestic data storage and processing capabilities. These measures aim to establish India as a global digital infrastructure hub by facilitating the development of secure, scalable, and future-ready data centres.

The Union Budget 2026-27 has also introduced measures to enhance Indias position as a global digital hub. A tax holiday has been proposed until 2047 for foreign companies providing cloud services to global customers through India-based data centres. These initiatives are expected to accelerate investments in cloud, AI, and next-generation digital infrastructure.

India AI Impact Summit 2026: A Gamechanger in Indias AI Revolution

India successfully hosted the India AI Impact Summit 2026 from 16-21 February 2026 in New Delhi, marking a defining milestone in Indias journey towards becoming a global AI powerhouse. As the fourth edition in the series of global AI summits and the first hosted in the global south, the summit brought together global technology leaders, policymakers, innovators, and industry participants from across the world.

Centred around the theme of AI for All, the summit reflected Indias vision of enabling inclusive AI adoption while strengthening its role in shaping the global AI ecosystem. The summit witnessed significant investment commitments exceeding USD 250 billion across the AI value chain, including computing infrastructure, foundation models, hardware, applications, and digital platforms. Leading Indian enterprises and global investors pledged multi-billion-dollar investments in AI infrastructure and digital ecosystems, alongside partnerships to expand AI-ready data centres.

COMPANY OVERVIEW

Anant Raj Limited (ARL) is one of the most esteemed real estate developers & Data centre player in Delhi and the National Capital Region (NCR), with a legacy spanning over five decades. Over the years, the Company has built a strong presence across real estate, Data Centre development and Cloud Services, construction and infrastructure sectors, underpinned by disciplined execution, strategic land acquisitions and an unwavering commitment to quality. ARL has developed a diversified portfolio comprising integrated township, group housing projects, commercial developments, hotels, serviced apartments, retail assets, warehousing facilities and data centres.

In the Real Estate segment, the Company has delivered approximately 22.34 million sq. ft. of residential and commercial developments as of 31^st March 2026, reinforcing its reputation for quality, timely execution and customer trust. Its ability to secure strategically located land parcels, obtain regulatory approvals and consistently deliver projects has established ARL as a trusted name in the Delhi-NCR real estate market.

In Data Centre and Cloud Services, the Company has operationalised two campuses situated at Manesar and Panchkula as of 31^st March 2026, with a combined planned capacity of approximately 107 MW IT Load. The Company has commenced work on the third campus at Rai, Sonipat with planned capacity of approximately 200 MW IT Load, to be operationalised in phases.

The Companys enduring legacy, diversified business portfolio and strategic expansion into digital infrastructure position it favourably to capitalise on emerging opportunities across both real estate and data centres.

Land Bank as a Strategic Asset

The Companys strategically located, ready-to-develop land bank across Delhi, Gurugram and NCR represents a significant competitive advantage. Spread across approximately 320 acres and largely acquired at historical costs, the land holdings are debt-free and free from litigation, providing strong visibility for future project launches and expansion for both businesses.

Anant Raj Estate, Golf Course Extension, Sector 63A, Gurugram

Anant Raj Estate, the Companys flagship integrated township in Sector 63A, Gurugram, spans approximately 220 acres. Strategically located in one of Gurugrams high-growth corridors, the township integrates premium residences, condominiums, commercial developments, and modern infrastructure & lifestyle amenities, offering significant future development potential while strengthening the Companys presence across diverse housing segments.

Foray into Data Centres

ARL strategically forayed into the data centre business in 2019, recognising the emerging opportunities from Indias accelerating digital transformation, growing focus on data localisation, and demand for secure digital infrastructure. The evolving regulatory framework, coupled with the Governments emphasis on strengthening digital infrastructure under the Atmanirbhar Bharat initiative, is propelling the development of indigenous data centre capacity and cloud infrastructure.

Evolution from Colocation to Cloud and AI Services

The Company commenced its journey with co-location services and subsequently expanded into cloud services with the launch of Ashok Cloud in October 2024, a sovereign, hyper-scalable cloud platform in association with Orange Business Services India Technology Pvt. Ltd. The platform offers Infrastructure-as-a-Service (IaaS), with plans to expand into Platform as a Service (PaaS) and Software as a Service (SaaS).

Building on its strong execution capabilities and proven data centre expertise, ARL is advancing towards AI-ready services through strategic partnerships with leading global technology providers. The Company has entered into an arrangement with Submer, a Spain-based AI and immersion cooling solutions provider, to develop AI-ready, liquid-cooled data centre infrastructure for high-density computing environments and evolving AI workloads.

Note: The Companys data centre and cloud services business is undertaken through its wholly-owned subsidiary, Anant Raj Cloud Private Limited, which serves as the dedicated platform for scaling its digital infrastructure capabilities.

Growth Trajectory and Outlook

Following the successful demerger of the Anant Raj Group in FY 2020-21, the Company embarked on a focussed growth journey, driven by disciplined execution, strong balance sheet, and healthy cash flow generation. Leveraging its extensive legacy and capabilities in real estate development, the Company expanded into the high-growth digital infrastructure segment through data centres and cloud services, creating an additional revenue stream.

Strong operating cash flows from the real estate segment have enabled the Company to achieve a net debt-free position, enhancing financial flexibility. Additionally, the data centre business has commenced cash flow generation from its operational capacity, establishing a scalable platform for growth and value creation.

As both real estate and data centre businesses enter their next phase of growth, the Company is evaluating strategic initiatives to create focussed platforms with dedicated management capabilities, independent growth strategies, and efficient capital allocation. This approach is expected to enhance operational focus, unlock the full potential of each business vertical, and create long-term value for all stakeholders.

- Revenue expanded from Rs.957 crore in FY 2023 to Rs.2,512 crore in FY 2026, representing growth of 162%.

- Profit After Tax (PAT) surged from Rs.151 crore in FY 2023 to Rs.557 crore in FY 2026, delivering a CAGR of 55%.

- Reduced net debt from Rs.1,010 crore in FY 2023 to Nil in FY 2026.

The Company successfully raised Rs.1,099.99 crore through a Qualified Institutions Placement (QIP) in FY 2026 to support future development and expansion opportunities.

KEY OPERATIONAL HIGHLIGHTS FY 2026

Real Estate Development

- Obtained licence and key approvals for Group Housing-2 on 5.09 acres in Sector 63A, Gurugram, with a planned saleable area of 0.90 million sq. ft.

- Advanced licensing stage for Group Housing-3 on 6.38 acres in Sector 63A, Gurugram, with an estimated saleable area of 1.20 million sq. ft.

- Commenced Phase IV of Anant Raj Estate across 6.08 acres, with a development potential of approximately 0.50 million sq. ft.

- Initiated approvals for Phase V of Anant Raj Estate spanning 9.12 acres, further expanding the township development pipeline.

- Delivered Phase I of Birla Navya, while obtaining occupancy certificates and commencing deliveries for Phase II.

- Progressed construction of The Estate Residences (Group Housing-1) ahead of schedule.

- Near completion of Ashok Estate, a 20+ acre development with a total development potential of approximately 1.34 million sq. ft.

- Strengthened the luxury residential pipeline through new project additions in Sector 63A, Gurugram, one of NCRs fastest-growing premium residential corridors.

Data Centre and Cloud Services

- Operationalised 28 MW IT load capacity, comprising 21 MW at Manesar and 7 MW at Panchkula, with a roadmap to scale capacity to 357 MW by FY 2032.

- Expanded Ashok Cloud offerings, with Infrastructure-as-a-Service (IaaS) capabilities operational at Manesar and Panchkula, operationalised as scheduled.

- Signed an MoU with the Government of Andhra Pradesh for the development of an additional 50 MW IT load data centre facility, expanding the Companys footprint in South India. With this, the total planned data centre capacity will reach to 357 MW IT load, mix of colocation and cloud services, of which 117 MW IT load will commence by FY 2028.

- Empanelled with MeitY (Ministry of Electronics and Information Technology) as a sovereign Government Community Cloud (GCC) provider and BSNL as a data centre service provider, strengthening access to government, telecom and enterprise opportunities.

- Entered into a strategic partnership with Submer, a Spain-based AI and immersion cooling solutions provider, to develop AI-ready, liquid-cooled data centres, supporting high-density computing and next-generation AI workloads.

- Incorporated a subsidiary in Singapore to expand the global reach of Anant Raj Cloud Private Limited, offering cloud business to international markets.

FINANCIAL OVERVIEW
	Consolidated Profit & Loss Snapshot		(Rs.Cr)
Particulars	FY 2026	FY 2025	YoY Change
Net Sales	2,511.60	2,059.97	21.92%
Other Income	67.48	40.31	67.40%
Total Income	2,579.08	2,100.28	22.80%
EBITDA*	723.15	531.98	35.94%
Depreciation	48.86	30.46	60.41%
Interest	12.35	10.99	12.37%
Profit Before Tax (PBT)	661.94	490.53	34.94%
Profit After Tax (PAT)	557.02	425.82	30.81%
*EBITDA includes other income

Revenues

The Company recorded a significant increase in its revenues, which grew by 21.92% from Rs.2,059.97 crore in FY 2025 to

Rs.2,511.60 crore in FY 2026.

Profitability and Margins

The Companys profitability saw notable improvement. EBITDA increased by 35.94%, rising from Rs.531.98 crore in FY 2025 to Rs.723.15 crore in FY 2026.

Profit After Tax (PAT) grew by 30.81%, moving from

Rs.425.82 crore in FY 2025 to Rs.557.02 crore in FY 2026. For FY 2026, the EBITDA margin stood at 28.04%, and the PAT margin was 21.60%.

Other Income

Other income for FY 2026 amounted to Rs.67.48 crore, compared to Rs.40.31 crore in FY 2025.

CONSOLIDATED BALANCE SHEET ANALYSIS

Shareholders Fund / Net Worth

The Companys Shareholders fund, which includes Share Capital, and Reserves and Surplus, saw an increase of 39.13%. This fund grew from Rs.4,160.79 crore as of March 31, 2025, to Rs.5,788.71 crore as of March 31, 2026. As of March 31, 2026, the Share Capital stood at Rs.71.98 crore, representing 35.99 crore equity shares, each valued at Rs.2. Reserves and Surplus amounted to

Rs.5,716.73 crore as of March 31, 2026, compared to Rs.4,092.14 crore as on March 31, 2025.

Receivables

Receivables increased from Rs.148.38 crore as of March 31, 2025, to Rs.270.98 crore as of March 31, 2026.

The Company has consistently declared dividends. For the financial year ended March 31, 2026, the Board of Directors recommended a final dividend @ 50%, i.e. Rs.1/- per equity share (face value of Rs.2 per equity share), subject to shareholders approval. If approved, it works out to 12.06% of disposable profits compared to 11.43% in the previous year.

Debt

The Company achieved a net debt-free position as on March 31, 2026, compared to a net debt of Rs.50 crore in FY 2025. This was achieved through strong operating cash flows and efficient revenue generation, thereby enhancing ARLs financial position.

Key Ratios
Ratios	FY 2026	FY 2025	YoY Change	Reason for Change
Debt Equity Ratio	0.10	0.11	-9.09%	Increase in total equity
Return on Equity	11.20	10.89	2.85%	Increase in average shareholder equity
Operating Profit Margin	26.11	23.87	9.38%	Increase in revenue from operations
Net Profit Margin	21.60	20.27	6.56%	Increase in total revenue

PROJECT UPDATES

Residential

Anant Raj Estate Township

Anant Raj Estate, spread across 220 acres in Sector 63A, Golf Course Extension Road, Gurugram, is the Companys flagship integrated township project. The township comprises a mix of residential plots, luxury villas and independent floors, complemented by commercial developments and social infrastructure, including schools, nursing homes, community centres and office complexes.

During FY 2026, the Company commenced Phase IV of Anant Raj Estate, covering an additional 6.075 acres with a development potential of approximately 0.50 million sq. ft. Further, approvals for Phase V, spanning 9.12 acres, are expected in FY 2027, which will expand the townships development footprint and strengthen the Companys luxury residential development pipeline.

- Obtained licence and key approvals for Group Housing-2 on 5.09 acres in Sector 63A, Gurugram, with a planned saleable area of 0.90 million sq. ft.

- Advanced licensing stage for Group Housing-3 on 6.38 acres in Sector 63A, Gurugram, with an estimated saleable area of 1.20 million sq. ft.

Birla Navya (Joint Venture with Birla Estates)

The Company, through its joint venture with Birla Estates, is developing Birla Navya, a premium residential project within Anant Raj Estate. Spread across 47 acres, the development comprises 764 luxury independent floor units across multiple phases.

Phase I of the project has been delivered, while occupancy certificates for Phase II have been received and deliveries have commenced. Phase III is scheduled for completion by the end of FY 2028. The Company also launched Phase IV during FY 2026.

Ashok Estate

Ashok Estate is a plotted residential development spread across 20.14 acres near Golf Course Extension Road, Gurugram. The project has a development potential of approximately 1.34 million sq. ft., and deliveries are substantially complete.

The Estate Residences

The Estate Residences is a luxury group housing development situated on a 5.43-acre plot in Sector 63A, Gurugram, spanning approximately 0.99 million sq. ft. saleable area. The project comprises 248 units of 4 BHK with all lifestyle amenities. The project is currently under development, with construction progressing ahead of schedule.

Affordable Housing

Anant Raj Aashray II, Tirupati, Andhra Pradesh

Anant Raj Aashray II, located in Tirupati, Andhra Pradesh, is an affordable housing project spread across 10.14 acres with a saleable area of approximately 1.2 million sq. ft. The project is under construction and is targeted to be completed as scheduled.

Hospitality & Commercial

Anant Raj Center 1, South Delhi

Anant Raj Center 1 is a mixed-use development comprising an operational area of approximately 0.70 lakh sq. ft, with an additional 4.9 lakh sq. ft. under construction following FSI approval expansion from 0.15 to 1.75. The site houses Hotel Bel-La Monde, a revenue-generating asset, and is being expanded to include commercial spaces, service apartments, a motel, and banqueting facilities.

Anant Raj Center 2, NH-8, Delhi

Anant Raj Center 2 is a mixed-use development that currently offers 90,000 sq. ft. of built-up space, with Hotel Bellanta Resorts operating as a key income-generating asset. The Company is planning to add 6.10 lakh sq. ft. of new space-subject to FSI approval, which will include commercial units, service apartments, and a motel with banqueting facilities.

Office Building, Sector 44, Gurugram

The LEED-certified Grade A commercial asset is fully operational and 100% leased, providing stable rental income.

Anant Raj Tech Park, Manesar

Spread across 10 acres, the project has a total development potential of approximately 1.70 million sq. ft. The facility currently houses 21 MW of operational data centre capacity and cloud services/ infrastructure.

Anant Raj Trade Centre, Rai

The 25-acre campus has a planned development potential of approximately 3.40 million sq. ft. The project is being upgraded to support a 100 MW Tier III data centre facility and work has commenced in the existing building. An additional 100 MW IT load is planned as part of the proposed expansion in a new building.

Anant Raj Tech Park, Panchkula

The project is spread across 9.23 acres with a development potential of approximately 1.0 million sq. ft. Phase I, comprising 4.40 lakh sq. ft. of leasable space in the existing building, has been completed. The facility currently operates 7 MW of data centre capacity, with expansion plans supporting a total IT load capacity of 57 MW.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

At ARL, sustainability extends beyond business operations to creating lasting value for communities. The Companys CSR initiativesareguidedbyacommitmenttoinclusivegrowth,focussing on healthcare, education, skill development, rural upliftment and environmental stewardship. Through these interventions, ARL seeks to strengthen social infrastructure, improve quality of life and contribute to long-term community resilience.

Central to this commitment is the Monica Sarin Foundation which serve as key platform for the Companys social outreach efforts. Established in 2021, the Monica Sarin Foundation works in health and education sector to enable equitable access to opportunities and foster sustainable social progress.

During FY 2026, the Company incurred CSR expenditure of

Rs.491.84 lakhs, underscoring its continued commitment to sustainable development and responsible corporate citizenship. This amount includes the CSR obligation of Rs.383.60 lakhs for FY 2026 and Rs.106.81 lakhs towards the unspent CSR obligation pertaining to the previous financial year. The Company incurred an excess CSR expenditure of Rs.1.43 lakhs, which shall be available for set-off against CSR obligations in the succeeding three financial years, subject to compliance with the applicable provisions of the Companies Act, 2013 and the rules made thereunder.

HUMAN RESOURCES

The Company recognises its employees as a key driver of sustained growth and success. ARL is committed to fostering an inclusive, performance-oriented work environment that promotes collaboration, learning and professional development.

ARL continues to invest in talent development through structured training and capability-building initiatives, enabling employees to enhance their skills and adapt to evolving business requirements. The Company also places strong emphasis on employee well-being and workplace safety through regular training, awareness programmes and preventive measures, aimed at maintaining a safe and healthy work environment.

As on March 31, 2026, the Group had a dedicated workforce of 403 employees.

RISK MANAGEMENT

Risk	Impact	Mitigation Strategy
Economic Risk	The real estate sector is susceptible	to ARLs diversified business portfolio, supported by a
	macroeconomic conditions. Any slowdown	in strategically located land bank across residential,
	domestic or global economic growth, geopolitical commercial, hospitality, and digital infrastructure uncertainties and persistent inflation could impact segments, strengthens its ability to navigate economic housing demand, commercial leasing activity cycles. The Company remains focussed on disciplined and investment inflows, thereby affecting ARLs execution, faster project delivery, strong pre-sales,
	business performance.	and healthy cash flow generation while maintaining a net debt free balance sheet. Supported by operational excellence, technology-led capabilities, and prudent capital allocation, the Company remains well-positioned to deliver sustainable, long-term growth.
Interest Rate Risk	Rising interest rates can increase borrowing ARL has significantly strengthened its balance sheet costs for homebuyers and businesses, potentially through substantial debt reduction over the years. affecting housing affordability, property demand Lower leverage, healthy cash flows and prudent financial and financing activity, affecting ARLs and management provide flexibility to navigate changing
	business performance.	interest rate environments.
Liquidity Risk	The capital-intensive nature of the real estate The Companys substantial land bank, acquired over sector may create liquidity pressures arising from the years at attractive acquisition costs, enables project funding requirements, execution timelines it to undertake developments with relatively lower and market fluctuations, potentially impacting capital commitments. Combined with a phased project
	business operations and growth plans.	execution strategy and prudent financial management, this approach supports efficient utilisation of capital. Robust operational performance in FY 2026, reflected in higher revenues and profitability, further reinforced the Companys liquidity position.

 

Risk	Impact	Mitigation Strategy
Execution Risk	The real estate sector is subject to regulatory ARL mitigates execution risks through robust planning, approvals, compliance requirements and project strong compliance practices, and disciplined project execution challenges. Delays in approvals, labour management. The Company undertakes projects after shortages or disruptions in project execution securing necessary approvals and maintains close could impact timelines, increase costs and affect monitoring across the development lifecycle. Experienced
	project deliveries.	teams, strong stakeholder relationships, and reliable
	Data centres and cloud services require significant execution capabilities enable timely project completion capital investment, advanced technology while minimising disruptions. infrastructure, and timely capacity utilisation. For its data centre business, ARL follows a phased Additionally, uninterrupted power availability, expansion approach aligned with customer demand efficient cooling systems, and operational and long-term contracts, enhancing occupancy reliability remain critical to ensuring service visibility and stable cash flows. The Company ensures
	continuity.	operational reliability through resilient power and cooling infrastructure, continuous monitoring, preventive maintenance, and disaster recovery systems.
Input Risk	Increases in the cost of construction materials, ARL mitigates this risk through long-standing
	labour and other key inputs may lead to higher relationships with suppliers and contractors, enabling
	project costs and impact profit margins.	reliable access to quality materials at competitive prices.
		The Company follows disciplined procurement and project planning practices to optimise costs and maintain execution efficiency. Its established vendor network and streamlined construction processes help minimise the impact of input cost fluctuations on project economics and margins.
Credit Risk	Credit risk may arise from delays or defaults ARL maintains a prudent financial management
	in repayment obligations by customers	or frameworksupportedbyhealthycashflows,astrengthened
	counterparties, which could affect the Companys balance sheet and disciplined monitoring of receivables
	cash flows and financial performance.	and financial obligations. The Companys strong liquidity position and track record of meeting its debt servicing commitments enable it to effectively manage credit- related risks while supporting uninterrupted business operations.
Quality Risk	Any compromise in construction quality or project ARL follows stringent quality control processes across
	delivery standards may affect customer confidence, all stages of project development to ensure superior
	brand reputation and sales performance.	construction standards and customer satisfaction.
		The Company leverages the expertise of experienced engineers, architects and project management teams, supported by technology-enabled systems and continuous process improvements. Its consistent focus on quality and timely delivery helps strengthen customer trust and reinforce its market position.

 

Risk	Impact	Mitigation Strategy
Location Risk	The success of real estate developments is closely linked to location-specific factors such as connectivity, infrastructure development, demand dynamics and economic activity. An inability to secure projects in attractive growth corridors may impact sales performance and value realisation.	ARL mitigates this risk through a strategic focus on high- growth micro-markets across Delhi-NCR. The Companys flagship development, Anant Raj Estate in Sector 63A, Gurugram, is located in one of the regions fastest- growing real estate corridors, benefiting from improving infrastructure, strong residential demand and increasing commercial activity. ARLs disciplined land acquisition strategy and focus on future-ready locations enhance development potential and support long-term value creation.

Cautionary Statement

This Management Discussion and Analysis contain statements outlining the Companys objectives, expectations, estimates, projections and future outlook. These statements may be regarded as forward-looking statements within the meaning of applicable securities laws and regulations. They are based on certain assumptions and assessments made by the Company in light of its experience, business environment and expectations of future developments. Actual results may, however, differ materially from those expressed or implied due to various risks, uncertainties and other unforeseen factors.

The Companys performance may be influenced by changes in macroeconomic conditions, capital market developments, industry dynamics, government policies, taxation, regulatory requirements and other factors beyond its control. The Company undertakes no obligation to publicly update, amend or revise any forward-looking statements, whether as a result of new information, future events or otherwise.