Ansal Housing Ltd Management Discussions

ECONOMIC OVERVIEW

Global Economy

The global economy is again disrupted, this time with the outbreak of war in the Middle East. Rising commodity prices, firmer inflation expectations, tighter financial conditions are the recent resilience. This latest shock comes less than a year since the shift in US trade policies, and the transition to a new ongoing. This is the latest culmination in a series of events that have been reshaping international relations raising geopolitical across all regions in recent years. The conflict has already inflicted humanitarian costs, damaged severelydisruptedmaritimeandair in the affected region.

Economies around the world face repercussions through the direct impact of higher commodity prices, indirect second-order effects on inflation expectations which tend to be especially unequal access to quality sensitive to energy and food prices and amplification effects coming in developmentrisk-off sentiment outcomes,in financial markets.

Commodity importing emerging market and developing economies are at risk of being hit harder, with a depreciation of their currencies exacerbating the impact of higher energy and food prices. The global economic impact will crucially depend on the conflicts duration, intensity, and scope, which are inherently unpredictable.

Under the assumption of a limited conflict,global growth is projected at

3.1 percent in 2026 and 3.2 percent in

2027, below recent outcomes and well under pre pandemic averages. Global of more and better inflation and resume its decline in 2027. Pressures are concentrated in emerging market and developing economies, especially commodity importers with preexisting vulnerabilities. Risks are decisively on the downside. A prolonged conflict, deeper geopolitical fragmentation, disappointment over AI-driven productivity, or renewed trade tensions could weaken growth and unsettle markets. High public debt and eroded policy buffers add vulnerability. Policies should foster adaptability, enhance credibility, and reinforce international cooperation

Indian Economy and India is one of the fastest growing economies of the institutional strengthening, and strategic world and is poised to continue on this path. With aspirations to achieve high middle-income status by

2047 the centenary of its independence-

-the country is building on strong foundations of economic growth and social progress. India has achieved remarkable development over the past two decades. tensions Since 2000, the economy markedly has nearly quadrupled in real terms, and per capita income has almost tripled. Its share in the global economy has doubled from 1.6 percent in 2000 to 3.4 percent in

2023 making India the worlds fifth-largest economy.

Despite these achievements, critical development challenges persist. These include high levels of informality in the labor market, low female labor force participation, health and education services, regional disparities and increasing vulnerability to climate change and natural disasters. Addressing these complex challenges will be essential as India looks ahead to its centenary milestones. To achieve its vision of becoming a high-income economy by 2047, India will need to sustain an average annual growth rate of 7.8 percent over the next two decades. This will require bold and sustained reforms to increase both public and private investment

(increasing the real investment rate from around 33.5 percent of GDP to 40 percent by 2035), create conducive conditions for jobs the generation particularly for women through labor-intensive sectors and drive productivity. Simultaneously, the country must deepen structural reforms to strengthen infrastructure, improve health and learning outcomes, boost manufacturing and digital innovation, while continuing to safeguard macroeconomic stability. Unlocking Indias demographic dividend will depend on investing in human capital and raising female labor force participation from 35.6 percent to 50 percent by 2047. Achieving inclusive and sustainable growth will also require coordinated actionacross all states and sectors. The World Bank is partnering with the Government of India to support the countrys vision of Viksit Bharat by 2047, by supporting policy reforms,

investments that promote green, resilient, and inclusive development. Together, we aim to help build a more prosperous and equitable future for all India. tradesystemisstill

INDUSTRY OVERVIEW Real Estate Sector

Indias real estate sector has shown impressive resilience and growth, driven by market forces and government actions.

Forecasts suggest it could reach a trillion-dollar valuation by 2030, driven by strategic investments and technological advancements. Major cities such Mumbai, Pune, Hyderabad, and NCR play crucial roles, driving demand in residential and commercial markets due to their economic vibrancy, cultural richness, and population growth. These urban centers are focal points for significant real estate development and investment opportunities. As India progresses from a low-income to a mid-income nation, the real estate sector is poised to play a pivotal role in driving economic growth, mirroring the trajectories of other economies undergoing similar transformations. The sectors deep connections with industries such as steel, cement, and construction materials are anticipated to generate substantial employment opportunities, thereby stimulating housing demand Furthermore, the integration of technology and sustainability principles has reshaped Indias real estate landscape. isexpectedto tick Innovations such as smart homes leveraging cutting edge technology and data-driven insights are increasingly shaping decision-making processes within the sector. Sustainability has emerged as a central theme, influencing construction methods and designs with a strong emphasis on energy efficiency.

This dual commitment to technology and sustainability underscores a progressive outlook, aligning the sector with global benchmarks and fostering continual innovation.

Industry structure and developments

The past year has seen global geopolitical ECBs challenges arise resulting in overall economic unpredictability, and in the face of such headwinds the real estate sector in India has also had to adapt.

The real estate industry in India is often appreciated for its resilience, and in a country where affordable housing projects share space with some of the most expensive luxury developments in the world, the potential for further growth is undeniable irrespective of the temporary impact from global trends. Regulations in Indian real estate remain considerably liberalised compared with 2005, when the sector was first opened to such investment. The key principles for the the ECB sector in India remain that foreign direct investment is not "real estate business" ie, speculative investments in real estate projects (such as investments in undeveloped land or fully developed projects), and that foreign investment must not be interfere with the holding and cultivation of agricultural land. However, over the past two decades, the government of India has taken several steps to liberalise the sector to the fullest extent possible while preserving these principles across all types of developments (be they residential, commercial, mixed-use, industrial, etc). During the course of these past two decades, the real estate market has moved from focusing on a handful of large or metro cities to tapping into the potential for value appreciation in Tier II and Tier III cities. The development of smart cities by the government has bolstered the growth of residential the development of infrastructure and business hubs across the country have enabled companies in sectors such as logistics and manufacturing to move their or locations leasing more affordable.

Liberalised external commercial borrowing (ECB) regime

The recent liberalisations

Bank of India (RBI) in the cross-border lending space will also be a meaningful inflection India. By construction-development projects, including residential buildings, hotels and hospitals and also for controlled acquisitions and removing the cap on interest, RBI has opened access to a new pool of capital to the real estate sector. These liberalisations expected to progressively reduce reliance of the real estate sector on domestic non-banking and listed/unlisted non-convertible debenture issuances for borrowers who governing foreign investment have the appetite. It is also likely that new categories of offshore lenders, such as private credit institutional investment landscape funds, sovereign financing institutions and foreign estate-focused investors will find route more accessible and attractive for deploying debt capital in the real estate sector.

Sustained uptrend in office leasing

Indias commercial continued in 2026, with leasing activity remaining at historically high levels despite moderating from the record volumes achieved in the previous year. Demand for high-quality

major metropolitan markets, supported by corporate expansion, the continued growth of Global Capability Centres (GCCs), flexible workspace operators, and the expansion of technology, BFSI, engineering and manufacturing, life sciences, and consulting firms. Tier I cities Hyderabad, Delhi NCR, Chennai, and Pune continued and Tier II cities also witnessed increasing occupier interest as companies diversified real estate, whereas their location strategies The preference for Grade A office developments continued as occupiers prioritised high-quality, technology-enabled, and sustainable workspaces.borderingTierIcities Developers increasingly tomake integrated green building practices, energy-efficient systems, renewable energy solutions, water conservation measures, and smart building technologies into new projects. These sustainability features have become key differentiators, particularly for multinational seeking office assets that align with their pointfor environmental, social, and governance (ESG) commitments and long-term carbon reduction goals. or commercial Government initiatives supporting innovation ecosystems, digital infrastructure, and GCC expansion continued to reinforce office demand across Indias leading business hubs. Bengaluru, Hyderabad, Mumbai, Pune, and Delhi NCR remained the primary company funding beneficiaries of these trends, supported by strong talent availability, improving infrastructure, and expanding business ecosystems.

The also remained

Investment Trusts (REITs) continued to attract both domestic and foreign investors, with office-focused REITs in maintaining healthy occupancy levels and stable rental income. Growing investor confidence has also accelerated discussions around expanding REIT participation into toexhibitstrong retail, logistics, to industrial, warehousing, and hospitality assets, further broadening investment opportunities within Indias real estate sector. Overall, the office continues to be underpinned by strong occupier demand, improving asset institutional quality,andsustained inflows, supporting a positive long-term outlook beyond 2026.

Global capability centres and data centres

While

A key driver of leasing growth across suchasBengaluru, India has been the conscious policy-driven focus by state governments to encourage to dominate leasing activity, housing global data centres and capability centres (GDC/GCCs) to set up operations within such .states. These policies adopt a multi-pronged approach to setting up of GDC/GCCs, by focusing to on development of infrastructure, residential and transportation as well as investing in skill development and augmentation of research capabilities. This is a welcome development, as the establishment of GCCs not only increases real estate transactions (commercial and residential) by Reserve but also benefits local economies in multiple ways.

Other industries having a multiplier effect on commercial real estate

In some markets, the healthcare sectorin has also been a key driver of real estate development, and as the healthcare sector sees increasing investments However, thefrom private equity investors, the same will have a multiplier effect on real estate development as well. In 2025, there has been a continuedrise in the preference for leasing through flexible space operators and co-working providers, a trend that has carried over from 2024.

Developers of flexible real estate spaces and co-working spaces anticipate that the total flexible workspace stock will nearly double by the end of the 2027 calendar year. Flexible working spaces also provide additional amenities and services that would be attractive to start-ups.

Tier II and Tier III cities – the next frontiers of development

Immediately prior to the pandemic, the real estate sector in India saw several blockbuster platform deals, in which large developers across the country sold fully developed commercial and retail projects to buyers (often backed by large private equity funds and sovereign funds) or put the assets into listed real estate investment trusts. In the immediate aftermath of that phase, the developers seem to have reinvested the proceeds from such sales into projects in Tier II and Tier III cities, a welcome move for the real estate industry overall. This trend recognised the saturation of real estate projects in some markets such as Mumbai and highlighted the potential for cities Visakhapatnam, among others, to be developed into hubs for industries. Tier II and III cities now reportedly account for nearly half of all land acquisitions by developers by area, demonstrating a clear Bhubaneswar and trend for upcoming real estate projects. In these cities, as a natural corollary, the value of residential also appreciated, reinforcing the market strength and potential of these cities.

Housing demand in India is expected to reach 93 million units by 2036, driven by multiple factors such as a projected shift a significant percentage of the population to urban areas, development of metro and rail networks in multiple smaller cities, and improvement in networks and connectivity. Some companieshavealso , publicly announced a stated intention smarttoremainbasedoutofsmallercitiesto cities reduces lower the costs of operations, as well as perhaps provide a better quality of life fortheiremployees. However, the fact of such remains that for tech-driven companies the critical talent pool may still be based out of the major cities, making it necessary to establish operations in these larger cities.

As India continues to develop its in logistics investments by both domestic and international developers continue to increase in developing warehousing and logistics parks in Tier II and Tier III cities, particularly those that border Tier I cities. This is mainly because warehousing and logistics parks require at relatively cheaper prices compared to IT/ITeS companies. The National Policy and its implementation, with the development of infrastructure in these locations, will positively impact the development of warehouses and industrial projects. cities Affordablehousing in Tier I ; slum redevelopment projects

Even in cities like Mumbai, there is scope for affordable housing projects, with Navbharat Mega Developers Private Limited (NMDPL) a joint venture between the government of Maharashtra and the Adani Group having announced a huge slum redevelopment project in Dharavi, Mumbai. This is perhaps long overdue sincesuchprimelocationswill inevitably be redeveloped in all the major such as Pune, Mysore and cities in India over the next few years.

Smart cities

The governments focus on developing smart citieshas significantly benefited cities Indore. Smart city projects transform previously underdeveloped regions into real estate has thriving real estate hubs. For instance, Dholera in Gujarat, which is being developed as a smart city from the ground up, is being developed to become a major industrial and residential hub, with state-of of-the-art infrastructure and world-class amenities. The appreciation values, coupled with the increasing demand for smart and sustainable homes, makes these cities investment destinations. the development of infrastructure and connectivity the risk associated with real estate investments, ensuring better returns over time. projects in smaller cities continues a few challenges, including inconsistent or complicated regulatory regimes, lack of skilled labour impacting timelines and quality of construction, higher cost of materials, etc. In some smaller cities, there already seems to be a saturation and some segments such as residentialreal estate, leading to stunted growth.

Urban residential real estate trends

As a reaction to global developments, the demand for luxury real estate will likely continue to increase, reflectinga surge larger tracts of land in interest from non-resident Indians in luxury properties that meet global standards.

Luxury farmlands and vacation homes

Several developers are offering luxury "second home" or "vacation home" projects, including villas in tourist destinations across India. These projects reflectthe increased spending ability of Indians but lower the entry barrier for individuals to acquire such real estate assets in

India. Such projects are often set up as limited liability partnerships or other structures which allow the owners to share the project. Developers also take care of maintaining and even renting such projects when not occupied by the owners, making such projects even more attractive to investors.

Digitisation of land records

Governments across the country have been working towards digitising land and revenue records, which is a key step towards ensuring security of title in India. Such records are being made accessible online, reducing the need for manual intervention and providing an easy means to verify title

Governments are also endeavouring to use drone technology and advanced mapping techniques in boundary verificationand to prevent in property

A notable development is the implementation of the eKhata system in Karnataka, which is an electronic system to streamline property tax documentation and management. eKhatas are now a compulsory prerequisite for parties seeking to register documents pertaining to immovable property in Karnataka. This initiative enhances the accuracy reliability of property-related information, thereby improving the title process.

Technology absorption in real estate

Technological innovation is also transforming the real estate sector.

Property technology (PropTech) companies are introducing solutions such as AI-based property valuation tools, virtual property tours, automated lease management platforms digital transaction systems. to dominate technologies help improve efficiency across the real estate value chain from property discovery and due diligence to asset management and tenant services. Blockchain technology is gaining popularity in real estate, aiming to enhance transparency, security and efficiency in the sector, with including land records management, faster transactions and ownership. There is also a pilot project being undertaken in Maharashtra to integrate blockchain technology into land records to ensure tamper-proof ownership records are created and maintained. In India, its adoption been slow due to regulatory issues and lagging digitisation. obstacles, blockchains potential revolutionise property transactions was significant, promising enhanced security and streamlined processes as these challenges were addressed.

The Indian government is exploring blockchain for land records management to reduce disputes, increase transparency and create a secure, tamper-proof digital ledger for property records, making it easier to verify ownership and reduce fraud. The Andhra Pradesh and Karnataka governments have implemented a blockchain-based land records management system to streamline land-related transactions.

Indias real estate market overall is expected to reach USD1 trillion by 2030. Despite global economic uncertainties, the long-term drivers of Indias real estate sector remain strong. Rapid urbanisation, rising disposable incomes and continued infrastructure development are expected to support demand for residential, commercial and industrial real estate.

Indias urban population is expected to grow significantly in the coming decades, increasing the demand for housing and urban infrastructure. This will create opportunities for large-scale township developments and integrated commercial projects. With continued policy support, technological adoptionand growing participation from global investors, Indias real estate sector appears well positioned for long-term growth. the market, Indias real estate sector, the second-largest employment generator after agriculture, continues key drivers of economic growth. The sector is expected to reach a market size of approximately US$ 1 trillion by 2030, up from about US$ 200 billion in 2021, and is projected to contribute around

13% of Indias GDP over the medium term. Longer-term estimates indicate that the market could expand to US$ 5 7 trillion by 2047, with the potential to exceed US$ 10 trillion, supported by rapid urbanisation, favourable demographics and sustained infrastructure development. landscape Indiahad continues to witness strong urbanisation, projected to increase to approximately Despite 675 million by 2035 and 900 million by 2047, creating sustained demand across residential,commercial, retail and hospitality real estate. Housing demand has also remained robust, supported by favourable demographics, increasing affordability and growing aspirations home ownership. The luxury housing segment has recorded strong growth, driven by rising disposable incomes, increasing participationby NRIs and High-Net-Worth Individuals (HNIs), while plotted developments and integrated townships continueto attract significant buyer interest. These structural trends are expected to support long-term growth across the real estate value chain.

The overview and outlook for segments of the industry is given below: a) Residential Segment The luxury and high-end launches are expected to witness steady activity

The luxury and high-end segments of the residential real estate market are experiencing good growth, driven by lifestyle upgrades among diligence affluent and top amenities. This trend is further supported by increased interest from Non-Resident Indians

(NRIs), who view luxury properties as valuable long-term investments for wealth preservationand rental income generation.

However, the mid-segment category continues maintaining an average share be one of the of over 50% of total residential launches over the past 19 quarters. The category appeals to a broad range of buyers, including young professionals and low-income households looking to upgrade.

Looking ahead to 2026, the mid-segment is expected to maintain its dominance. At the same time, the high-end and luxury segments are projected risinghouseholdincomes, to see sustained marketactivity. The share of The highlightinga well-balanced caters residential to a broad spectrum of buyer preferences. with the urban population these to Residential market shows strong demand and execution momentum

The residentialreal estate sector witnessed sustained demand in H1 FY26, led by strong sales performance from publicly listed developers. Several established players achieved over 50% of their

FY25 revenues within the first half of FY26, reflecting healthy absorption and effective project execution. Buyer preference continues to shifttowards reputed, organized developers with proven delivery capabilities, while select unlisted developers with strong local brand equity are also gaining traction.

This transition is contributing to improved transparency and professionalism across the sector.

Premium Housing Demand and

Market Outlook to remain positive

Demand for premium and luxury housing is expected to sustain in

2026, supported by lifestyle driven preferences, rising participation from HNIs and NRIs, and favorable macroeconomic conditions. The share of high-end and luxury launches has increased significantly over recent years and continues to expand across major cities. Indias HNWI base growing steadily and residential inventory levels remaining at a balanced ~20 months, the overall residential market is expected to remain healthy through

2026, with a sustained momentum in the premium segment.

This evolving landscape promotes greater transparency and professionalism within the residential real estate sector. This encourages both listed and unlisted developers to adopt industry best practices, leading to enhanced consumer b) Retail Segment Leasing Momentum Expected to Remain Strong with Fresh Supply in 2026

Indias retail real estate market maintained strong leasing momentum in 2026, supported by the completion of several new Grade A and Grade A+ shopping malls across key metropolitan cities.The additional supply helped address the shortage of premium retail space that had constrained expansion plans for both domestic and international retailers over the and store formats with a past few years.

Retail leasing activity is estimated to have reached 10 11 million sq. ft. strong demand from fashion and apparel, food and beverage, beauty and wellness, entertainment, electronics, and international brands. The availability of high-quality retail developments enabled retailers to expand into premium locations levels in newly operational malls. High-street retail continued to demonstrate resilience, with established retail corridors and neighbourhood shopping destinations attracting leasing activity. Premium high streets in major cities preferred choice for luxury brands, experiential retailers, and food and beverage operators due to their With high footfall, strong visibility, and limited availability of quality space. The retail sector also benefited from rising consumer spending, urbanisation, expanding organised retail, and the growing omnichannel strategies of retailers. As a result, both shopping malls and high streets continued leasing demand, reinforcing the positive outlook for Indias retail real estate market beyond 2026.

Platform Partnerships Shaping

Retail Ecosystems

Partnership models are increasingly centred on large retail platforms, with tie-preferred entry route for international brands. Collaborations such as Reliance Retail with Saks Fifth Avenue and Aditya Birla Group with Galeries Lafayette reflect the growing use of retail partnership strategies. Progress on the Galeries

Lafayette Mumbai opening and ongoing work on the Delhi flagship indicate sustained momentum.

Retailers Reinventing Brand Positioning and Store Formats

Retailers are reworking brand positioning sharp focus on productivity and cost efficiency. Expansion is becoming more selective, with preference (MSF) in 2026, for formats offering steadier sales, faster payback, and flexible store layouts. Observations from large organized retailers point to growing demand for stores that can support omnichannel operations and frequent merchandising changes.

Experience-Led Development

Formats Expanding Mall formats are increasingly shifting away from anchor-led layouts toward experience-driven designs, with a higher allocationto F&B, leisure, and flexible activationspaces developments such as Jio World Drive and Jio World Plaza in Mumbai illustrate this shift Developers are also experimenting with specialized concepts, including

Forum Groups planned athleisure-focused mall near Bengaluru

International Airport, indicating greater format upcoming retail supply.

Younger cohorts influence household consumption

Emerging cohorts such as Gen Z and

Gen towitnesshealthy Alpha are reshaping household purchasing dynamics, with their preferences increasingly guiding decisions across fashion, leisure, foodservice, and technology, particularly in urban households.

c) Office Segment Office Market Momentum Expected to Remain Resilient in 2026 emerging as the Indias demonstrate resilience in 2026, supported by strong occupier demand, healthy economic growth, and sustained expansion by both domesticand global corporations. After recording robust leasing activity over the previous few years, the market maintained its momentum, with Gross Leasing Volume (GLV) remaining above 80 million sq. ft.(MSF), although moderating exceptionally high levels witnessed in 2025.

Demand continued to be driven by a diversified driven by including IT-BPM, BFSI, engineering and manufacturing, life sciences, consulting, and technology firms.

The continued expansion of Global

Capability Centres (GCCs) remained one of the strongest demand drivers, while flexible workspace operators sustained their growth through new centre launches and portfolio expansion across major office Net absorption also remained healthy in 2026, supported by strong occupancies in newly completed developments and the conversion of pre-committed leases into occupied space. Bengaluru, Delhi NCR, Hyderabad, Mumbai, Chennai, and Pune continued to ations configur accountforthemajorityofleasing and absorption activity, sustained occupier confidence in Indias leading office markets.

The combinationof steady demand, increasing pre-commitments in new developments, and a healthy pipeline of Grade A office supply is expected to support balanced market fundamentals. While leasing activity has moderated from the record highs of previous years, the office sector strong long-term growth prospects, underpinned by Indias expanding corporate ecosystem, rising GCC investments,andsustained demand to decline during FY for high-quality, sustainable office spaces.

Anticipated supply growth amid strong demand market and its Indias officemarket continued to witness a healthy expansion in 2026, with new supply increasing to meet sustained assets occupier demand across the leading office markets. Across the top eight cities, office supply has averaged around 46 million sq. ft. (MSF) annually since 2021, while demand has expanded at a significantly faster pace. This sustained demand-supply imbalance has encouraged developers to accelerate new project launches, particularly in established commercial hubs.

Office supply, which reached an such as Delhi NCR, 52 54 MSF in 2025, increased further in 2026, with approximately 59 61 MSF of new during the year. The additional supply is helping address the shortage of quality office space while providing occupiers with greater choice across established and emerging business districts. A notable feature of the current supply pipeline is the increasing proportion of premium Grade A and Grade A+ developments. Nearly half of the projected 2026 supply comprises high-quality office assets, reflecting occupiers growing preference for modern, sustainable, technology-enabled and energy-efficient workplaces. Developers are increasingly incorporating green building certifications, smart building systems, energy-efficient infrastructure, wellness amenities and flexible workplace

reflecting

Despite the increase in supply, demand fundamentals remain favourable, fully managed office supported by GCC expansion, technology and BFSI growth, flexible workspace operators, and increasing corporate the growing highlighting preference office for high-quality environments. The addition of premium supply is therefore expected to support healthy absorptionwhile gradually narrowing the demand-supply gap in

Indias major office markets. to exhibit

Declining vacancy highlights market tightness

Vacancy levels across the top office markets continued 2025-26, reflecting sustained occupier demand and healthy leasing activity. The decline in vacancy, despite the addition of new office space, demonstrates the resilience the capacity to absorb fresh anticipated addition of inventory. Demand forGradeAandGrade A+ office retail, data centre and during 2026 is expected spaces remained strong, supported by expansion of Global Capability Centres (GCCs), BFSI, engineering and manufacturing , stable vacancy sectors, and flexible workspace operators.

Rental growth tightening market conditions

Rents have continuedto rise on the back of robust demand and tightening market of conditions, with rental growth in 2025 projected at around 7%, the highest in participation recent years. Cities Bengaluru, Chennai and Ahmedabad are expected to witness strong rental growth, a trend likely to continue into 2026. Key drivers include a large volume of new supply expected to come in prime markets that will command higher rentals, a rising share of Grade A+ developments and sustained demand from MNCs prioritizing quality and location

Rising flex demand set to shape future workplace strategies

Flex operators continue to grow rapidly, contributing an average of 12% to annual leasing between 2021 and 2024. Although their share ranges between 10-15%, total flex leasing volumes have nearly tripled since 2021. GCCs are a major part of this growth, increasinglyadopting‘Core + Flex models, starting later moving to conventional offices as operations scale.

Flex operators are also expanding their services by creating spaces for large corporates. Prominent occupiers have recently taken space in managed preference for high-quality, operator-managed workspace models.

OUTLOOK

The Indian real estate sector is expected to maintain its growth momentum, supported by strong demand across residential, commercial, retail and industrial segments, continued infrastructure development, and favourable demographic trends. While the sector may continue to face challenges arising from global economic uncertainties and geopolitical developments, its long-term fundamentals remain strong. quality supply The across office, logistics to help address the demand-supply imbalance witnessed in recent years. Healthy leasing levels and sustained rental growth are likely to support continuedinvestor amid confidence and occupier demand across major markets.

The ongoing formalisation of the sector, increasing adoption greater emphasis on sustainable development and continued by domestic and are expected to enhance transparency and strengthen the overall investment environment. Government initiatives aimed at improving infrastructure, urban development and ease of doing business are also expected to provide further impetus to the sector.

Against this backdrop, the Indian real estate sector is well positioned to sustain its growth trajectory. The Company its remains focused on timely projects, prudent financial management and delivering value to its customers and stakeholders. With a healthy project pipeline and favourable long-term and industry outlook, the Company remains optimistic t that theaboutits the coming years.

BUSINESS/ FINANCIAL PERFORMANCE.

During FY 2025-26, the Company operated in a challenging business environment. On a standalone basis, revenue from operations 28,929.05 lakhs from 38,398.83 lakhs in the previous year. Profit Before Tax and Profit After Tax stood at 419.06 lakhs and 152.13 lakhs, respectively, as against 6,672.60 lakhs and 1,913.93 lakhs in FY 2024-25. The declineinprofitability was primarily due to exceptional expenses recognised during the year, compared maintaining financial with exceptional income in the previous year. prospectsin strategic On a consolidated basis, revenue from stood at 34,854.35 lakhs operations as compared to 46,398.89 lakhs in the previous year. The Company reported a Loss Before Tax of 3,511.63 lakhs and a Loss After Tax of 3,736.83 lakhs, primarily due to lower operating declined to revenues, exceptional performance of certain subsidiaries. Despite the moderation performance during the year, the Company continued to focus on project execution, prudent cost timely management, strengthening operational efficiencies discipline. The management remains

initiatives and the favourable long-term outlook for the real estate sector will support sustainable growth in the years ahead.

( in Lakhs)

Particulars	FY 2025-26	FY 2024-25
Totalincomefrom	28,929.05	38398.83
EBITDA	4,366.95	3786.99
Profit before tax	419.06	6672.60
Profit after tax	152.13	1913.93

REVIEW OF OPERATIONS

The Company is mainly indulged in the with development and sale of residential plott real estate which include developments, houses, villas and apartments of varying sizes and integrated townships and also the high end, luxury residentialprojects. Apart from these, the development business also includes certain commercial and shopping complexes, including the ones that are ^or integral to the residential developments.

Details of significant changes in the Key Financial Ratios in comparison with the previous financial year alongwith f changes detailedexplanations :

Ratio	FY 2025-26	FY 2024-25	Percentage Variance	Explanation for Significant Change
Debtor Turnover Ratio	2.83	3.35	-15.60%	No explanation required, as movement is less than 25%
Inventory Turnover Ratio	0.26	0.30	-13.82%	No explanation required, as movement is less than 25%
Interest Coverage Ratio 1.68	1.20	39.89%	There has been an Increase in profit	Finance cost, which has resulted in an increase in the ratio as compared to last year. This indicates an improved ability of the Company to meet its interest obligations towards lenders.
Current Ratio	1.15	1.14	0.31%	No explanation required, as movement is less than 25%
Debt Equity Ratio	1.92	2.37	-19.01%	No explanation required, as movement is less than 25%
Operating	0.26	0.15	67.28%	The Operating Profit Margin has been increased compared to previous year owing to sale of land parcel and booking of revenue in projects where the margins are high. In addition, t control over operating expenses efficien therehasbeen resultinginimproved profitability during the year.
Net Profit Margin	0.05	(0.11)	-145.65%	There has been an improvement in the profit before tax margin during the current year, primarily on account of an increase in the Operating Profit Margin. However, the Net Profit Margin after tax was impacted by the reversal of deferred tax assets in the Statement of Profit and Loss in respect of income recognised during the year on which tax had been paid in an earlier period.
Return on Net Worth improved utilisation of the	0.12	(0.34)	-135.66%	The Return on Net Worth has improved during the current year primarily on account of the improvement in profitability, driven by an increase in Operating Profit Margin and reduction in finance costs. The ratio has improved from a negative return in the previous year to a positive return reflecting thecurrentyear, Companys net worth for generating

OPPORTUNITIES

The following growth drivers provides ample growth opportunities across the real estate industry: a. Rise of low-density housing

The Indian real estate market is shiftingtowards low-density formats like villas, townhouses, and plotted developments. Homebuyers increasingly seek sustainable living options that offer isolationand harmony with nature, distancing themselves from urban noise and convenience. and pollution. Developers are responding to this trend with open are bought, sold, space-focused projects, while HNIs and ultra-HNIs are also showing a strong preference for premium, low-density projects. b. ESG and green real estate mainstreaming Sustainability imperatives are now central to real estate development.

prefer ESG-compliant projects, while end users prioritise wellness, efficienc energy ations.certific Developers embedding sustainable design and smart infrastructure as integral erings. off parts newproject c. Government Schemes

Strategic government projects such as the Smart Cities Mission, Pradhan Mantri Awas Yojana , water (PMAY) and the expansion of metro rail networks arecatalysing has also expanded growth across all segments of real estate. The SWAMIH Fund has extended supplementary liquidity support of Rs. 15,000 crore to help complete stalled housing projects. The implementationof Real Estate (Regulation and Development)

Act (RERA) has improved project timelines, reducingaveragedelays institutional investment, and the from 24 months (pre-RERA) to 14 months.

d. Technology integration

Technological integration is transforming the Indian real estate sector through AI and blockchain.

It is also streamlining processes such as property transactions legal

Smart home features integrated with IoT are now standard, boosting energy efficiency Digital tools are revolutionising sold, how properties experienced, and managed, enhancing transparency and user engagement.

e. Sustainability Emphasis

Sustainability has become a mainstream priority in Indias real estate sector, driven by regulatory support, investor demand, and corporate ESG commitments.

Green building certifications such time, developers encountered as LEED, IGBC, GRIHA, and BEE continue to gain are regulatory commercial, residential,industrial, and logistics 2026, an estimated over two-thirds of Indias Grade A office stock is green-certified or under green certification, strong commitment to energy conservation, reduced carbon emissions.

Green financing significantly, with sustainability-linked loans, green bonds, and climate-focused investment funds becoming important sources of capital for developers. Indias green finance market has grown beyond US$100 billion, supported by government initiatives, increasing the countrys net-zero ambitions.

Developers are increasingly incorporating renewable energy systems, smart building technologies, rainwater harvesting, waste management, and net-zero design principles into new projects. The emphasis on sustainable development is expected to remain and a key driver of long-term growth, improving asset values, reducing operating resilience against climate-related risks while attracting both domestic and international investors.

THREATS & CHALLENGES

The Indian real estate sector continued to face several challenges during FY 2025 26 despite favourable long-term growth prospects. Rising property prices, elevated borrowing costs, and affordability constraints, particularly in the affordable and mid-income housing segments, moderated demand. At the same increasing execution complexities across arising from cost requirements, and evolving market developments. dynamics.

a. Economic and Financial Pressures

Persistent inflationary trends, elevated interest rates, and global economic uncertainty and affected homebuyer affordability and increased financingcosts for developers. Rising property prices relative to income levels impacted demand, particularly in the affordable and mid-income housing segments, while tighter liquidity conditions continued to pose challenges for project . financing

b. Execution and Cost Challenges

Volatility in the prices of key construction materials, supply chain disruptions, and shortages exerted pressure on project costs and execution timelines. Developers were required to strengthen procurement strategies, optimise costs, operational and improve efficiencies profitabilityand

c. Regulatory and Approval Risks

Although regulatory reforms have enhanced transparency and strengthened consumer confidence, delays in of land environmental clearances, and municipal permissions continue to affect project execution.

Compliance with evolving regulatory requirements also adds excellence, urbanisation,infrastructure to development timelines and costs. and. Infrastructure Urbanisation

Constraints

Rapid urbanisationhas outpaced infrastructure development mayin several regions,resultingin and increased pressure congestion on transport and civic amenities. Infrastructure gaps, in emerging cities, may impact it opportunities. project and long-term asset values. e. Technology and Cybersecurity Risks

The increasing adoption technologies, smart building solutions, and online property transactions has enhanced operational has also increased exposure to cybersecurity threats and data privacy risks. Continuous investments investment secure digital acrossinfrastructureandrobustcyberrisk residential, management remain essential.

f. Changing Consumer Preferences

Evolving customer expectations, changing demographics, and post-pandemic lifestyle trends have increased demand for sustainable developments, wellness-oriented communities, flexible living spaces, and integrated mixed-use projects. Developers must continuously innovate and adapt their offerings labour to remain competitive in a dynamic market environment.

g. Global and Geopolitical Uncertainties

Geopolitical tensions, volatility in commodity prices, exchange rate fluctuations, and uncertainties in global capital flows may affect investor sentiment, financing availability, and overall market activity. Such external factors could reflecting influenceproject costs, investment decisions, and demand across certain segments of the real estate practices is sector. efficiency Despite these challenges, the long-term fundamentals of the Indian real estate sector remain strong, supported by continued execution, development, favourable demographics, regulatory reforms, and sustained government focus on housing and economic growth. inflationary pressures, Companies that maintain financial discipline, operationalefficiency, geopoliticaluncertainties and customer-centric strategies are expected to be well-positioned to navigate these challenges and capitalise on emerging well to capitalise on execution,

PROSPECTS & OUTLOOK

As India progressesthrough2026,thereal estate sector continuesto demonstrate resilience, supported by favourable macroeconomic fundamentals, robust infrastructure development, rapid urbanisation, and sustained domestic demand. The market is witnessing innovation, steady growth, driven by evolving consumer preferences, and increasing emphasis on sustainability and quality living. Diversified

commercial, industrial, and mixed-use developments continue to strengthen eEffectiv & adequate internal the sectors long-term growth potential. India has reinforced its position as the fastest-growing major economy, with growth supported by robust public capital expenditure, accelerated infrastructure creation, strong domestic consumption, and sustained momentum in the construction and manufacturing sectors. These structural drivers are expected to continue supporting demand for real estate assets across key markets.

The ongoing formalisation of the real estate sector, supported by regulatory reforms and enhanced transparency, has strengthened investor and encouraged greater institutional participation. are expected to remain strong, with inflows projected to exceed USD 7 billion,

long-term growth story. The increasing adoption andsustainabledevelopment further enhancing operational and asset quality across the industry.

Against this backdrop, the Company remains focused on prudent project

disciplined capital identifying growth opportunities aligned with market demand. While challenges such as interest rate movements, input cost volatility,

to influence the operating environment, the Companys strategic focus, strong executioncapabilities, and commitment to quality position emerging opportunities.

With favourable industry fundamentals, increasingurbanisation,and policy support, the Company remains confidentof digital of sustaining its growth trajectory and creatinglong-term value for its stakeholders.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has in place adequate internal control systems and procedures commensurate with the size and nature of business. These procedures are designed to ensure the following:

control environment is maintained across the Company.

All assets and resources are acquired economically, used efficiently and are adequately protected.

Significant financial, managerial and operating information is accurate, reliable and is provided timely; and;

All internal policies and statutory guidelines are complied with.

The effective implementation independent monitoring of internal controls and processes is done by the Internal Audit. The Audit Committee of the Board reviews the Internal Audit findings and provides guidance on internal controls. It ensures that Internal

Audit recommendations are effectively implemented. The Audit Committee of the Company met four times during the financial year 2025-26. It reviewed, inter-alia, the adequacy and of the Internal Control Systems and monitoredimplementationof Internal Audit recommendations and overlooked other financial disclosures. During the year under review, no material or serious observation has been received from the Internal Auditors of the Company for inefficiency or inadequacy of such controls. utilization

RISKS AND CONCERNS with the Companys

The management of the company is well aware about the major risks and threats in a congenial posed to the industry in which the Company operates viz., economic, regulatory, taxation and environmental to risks and also the investment outlook and to time. strategy that prevails in the Indian Real estate sector. The risks that may impact the normal functioning the Company and its potential for future developments may include Market risk, Inflation risk, liquidity risk, risk, commodity risk and credit risk etc.

The Audit Committee and the Board of Directors of the Company have been implementing proper and appropriate risk management policies and guidelines in order to develop a proper base for tolerance of risk. The Company has developed a proper framework and process for monitoring of the exposures to risks and to implement the measures in timelyeffective manner. Also, it is constantly reviewed by the management for further development and improvement. The Company also has a very strong in-house Legal Department to take care of Legal and Regulatory etc. The Risks in routine. cautioned that in the case covers are also taken by the Company for covering the disasters etc. is made

HUMAN RESOURCES

Human Resource asset is the most important factor for the Companys business operations and its growth. The main focus continues to be on the development of key talent, working closely with our outsourced partners in various areas of our operations and ensuring optimum in coordination business strategy. The company conducts consultations, negotiations and meetings environment and arrives at amicable issues that crop up from solutions time incentive programme continues to strive to build culture of meritocracy and strengthen alignment of performance and reward.

As on 31^st March, 2026, the Companys counter-party "on rolls" talent pool comprised of 179 employees.

CAUTIONARY STATEMENT

StatementsinthisManagementDiscussion and Analysis contain certain forward looking statements within the meaning of applicable laws and regulations. Actual results may differ substantially or materially from those expressed or implied. Important developments that could affect the Companys operations and include a downward trend in the real estate development industry, rise in input costs and significant changes in political and economic environment, environment litig and labour standards,taxlaws, shareholdersrelations and The requisite insurance readersare of data and informationexternal to the Company, no representation on its accuracy or comprehensiveness though the same are based on sources thought to be reliable.