Arvind SmartSpaces Ltd Management Discussions

Global economic review

Overview

Global economic growth declined marginally from 3.3% in 2023 to an estimated 3.2% in 2024. This was marked by a slowdown in global manufacturing, particularly in Europe and parts of Asia coupled with supply chain disruption and weak consumer sentiment. In contrast, the services sector performed more creditably. The growth in advanced economies remained steady at 1.7% from 2023 to 2024 as the emerging cum developing economies witnessed a growth decline at 4.2% in 2024 (4.4% in 2023).

On the positive side, global inflation was expected to decline from 6.1% in 2023 to 4.5% in 2024 (projected at 3.5% and 3.2% in 2025 and 2026 respectively). This decline was attributed to the declining impact of erstwhile economic shocks, and labour supply improvements. The monetary policies announced by governments the world over helped keep inflation in check as well.

The end of the calendar year was marked by the return of Donald Trump as the new US President. The new US government threatened to impose tariffs on countries exporting to the US unless those countries lowered tariffs for the US to export to their countries. This enhanced global trade and markets uncertainty and emerged as the largest singular uncertainty in 2025.

Regional growth (%)	2024	2023
World output	3.2	3.3
Advanced economies	1.7	1.7
Emerging and developing economies	4.2	4.4

(Source: IMF, KPMG, Press Information Bureau, BBC, India Today

Performance of the major economies, 2024

United States	China	United Kingdom	Japan	Germany
Reported GDP growth of 2.8% in 2024 compared to 2.9% in 2023.	GDP growth was 5.0% in 2024 compared to 5.2% in 2023.	GDP growth was 0.8% in 2024 compared to 0.4% in 2023.	GDP growth was 0.1% in 2024 compared with 1.9% in 2023.	GDP contracted by 0.2% in 2024 compared to a 0.3% decline in 2023.

(Source: CNBC, China Briefing, ons.gov.uk, Trading Economics, Reuters)

Outlook

The global economy has entered a period of uncertainty following the imposition of tariffs of products imported into the USA and some countries announcing reciprocal tariffs on US exports to their countries. This is likely to stagger global economic growth, the full outcome of which cannot be currently estimated. This risk is supplemented by risks related to conflicts, geopolitical tensions, trade restrictions and climate risks. In view of this, World Bank projected global economic growth at 2.7% for 2025 and 2026, factoring the various economic uncertainties.

(Source: IMF, United Nations)

Indian economic review

Overview

The Indian economy grew at 6.5% in FY24-25, compared to a revised 9.2% in FY23-24. This represented a four-year low due to a moderate slowdown within the Indian economy (marked by slower manufacturing growth and a decline in net investments). Despite the slowdown, India retained its position as the worlds fifth-largest economy.

Indias nominal GDP (at current prices) was Rs.330.68 Trn in FY24-25 (Rs.301.23 Trn in FY23-24). The nominal GDP per capita increased from Rs.2,15,936 in FY23-24 to Rs.2,35,108 in FY24-25, reflecting the impact of an economic expansion.

The Indian rupee weakened 2.12% against the US dollar in FY24-25, closing at Rs.85.47 on the last trading day of FY24-25. In March 2025, the rupee recorded the highest monthly appreciation since November 2018, rising 2.39% (arising out a weakening US dollar).

Inflationary pressures eased, with CPI inflation averaging 4.63% in FY24-25, driven by moderating food inflation and stable global commodity prices. Retail inflation at 4.6% in FY24-25, was the lowest since the pandemic, catalysing savings creation.

Indias foreign exchange reserves stood at a high of USD 676 Bn as of April 4, 2025. This was the fourth consecutive year when rating upgrades outpaced downgrades on account of strong domestic growth, rural consumption, increased infrastructure investments and low corporate leverage (annualised rating upgrade rate 14.5% exceeded the decade-long average of 11%; downgrade rate was 5.3%, lower than the 10-year average of 6.5%).

Gross foreign direct investment (FDI) into India rose 13.6% to USD 81 Bn during the last financial year, the fastest pace of expansion since 2019-20. The increase in the year was despite a contraction during the fourth quarter of FY24-25 when inflows on a gross basis declined 6% to USD 17.9 Bn due to the uncertainty caused by Donald Trumps election and his assertions around getting investments back into the US.

Growth of the Indian economy

	FY22	FY23	FY24	FY25
Real GDP growth (%)	8.7	7.2	9.2	6.5

E: Estimated

(Source: MoSPI, Financial Express)

Growth of the Indian economy quarter by quarter, FY24-25

	Q1 FY25	Q2 FY25	Q3 FY25	Q4 FY25
Real GDP growth (%)	6.5	5.6	6.2	7.4

E: Estimated

(Source: The Hindu, National Statistics Office)

The banking sector continued its improvement, with gross non-performing assets (NPA) for scheduled commercial banks (SCBs) declining to 2.6% as of September 2024, down from 2.7% in March 2024. The capital-to-risk-weighted assets ratio for SCBs stood at 16.7% as of September 2024, reflecting a strong capital position.

Indias exports of goods and services reached USD 824.9 Bn in FY24-25, up from USD 778 Bn in the previous fiscal year. The Red Sea crisis impacted shipping costs, affecting price-sensitive exports. Merchandise exports grew 6% YoY, reaching USD 374.1 Bn.

Indias net GST collections increased 8.6%, totalling Rs.19.56 Lakh Cr in FY24-25. Gross GST collections in FY24-25 stood at Rs.22.08 Lakh Cr, a 9.4% increase YoY.

On the supply side, real gross value added (GVA) was estimated to expand 6.4% in FY24-25. The industrial sector grew by 6.5%, supported by growth in construction activities, electricity, gas, water supply and other utility services.

Indias services sector grew at 8.9% in FY24-25 (9.0% in FY24), driven by public administration, defence and other services (expanded at 8.8% as in the previous year). In the infrastructure and utilities sector, electricity, gas, water supply and other utility services grew a projected 6.0% in FY24-25, compared to 8.6% in FY24. Meanwhile, the construction sector expanded at 9.4% in FY24-25, slowing from 10.4% in the previous year.

Manufacturing activity was subdued in FY24-25, with growth at 4.5%, which was lower than 12.3% in FY24. Moreover, due to lower public spending in the early part of the year, government final consumption expenditure (GFCE) is anticipated to have slowed to 3.8% in FY24-25, compared to 8.1% in FY24.

The agriculture sector grew at 4.6% in FY24-25 (1.4% in FY23-24). Trade, hotel, transport, communication and services related to broadcasting segment were estimated to grow at 6.4% in FY24- 25 (6.3% in FY23-24). From a demand perspective, the private final consumption expenditure (PFCE) exhibited robust growth, achieving 7.2% in FY24-25, surpassing the previous financial years rate of 5.6%. The Nifty 50 and SENSEX recorded their weakest annual performances in FY24-25 in two years, rising 5.3% and 7.5% during the year under review respectively. Gold rose 37.7% to a peak of USD 3,070 per ounce, the highest increase since FY 2007-08, indicating global uncertainties. Total assets managed by the mutual fund (MF) industry jumped 23% or Rs.12.3 Lakh Cr in fiscal 2025 to settle at Rs.65.7 Lakh Cr. At close of FY24-25, the total number of folios had jumped to nearly 23.5 Cr, an all-time peak. During last fiscal, average monthly systematic investment plan (SIP) contribution jumped 45% to Rs.24,113 Cr.

Foreign portfolio investments (FPIs) in India experienced high volatility throughout 2024, with total inflows into capital markets reaching approximately USD 20 Bn by year-end. However, there was significant selling pressure in the last quarter, influenced by new tariffs announced by the new US government on most countries (including India).

Outlook

India is expected to remain the fastest-growing major economy. Initial Reserve Bank of India estimates have forecast Indias GDP growth downwards from 6.7% to 6.5% based on risks arising from US tariff levies on India and other countries. The following are some key growth catalysts for India in FY26.

Tariff-based competitiveness: India identified at least 10 sectors such as apparel and clothing accessories, chemicals, plastics and rubber where the US high tariffs give New Delhi a competitive advantage in the American market over other suppliers. While India faced a 10% tariff after the US suspended the 26% additional duties for 90 days, the levy remained at 145% on China, the biggest exporter to the US. Chinas share of apparel imports into the US was 25%, compared with Indias 3.8%, a large opportunity to address differential (Source: Niti Aayog).

Union Budget FY25-26: The Union Budget 2025-26 laid a strong foundation for Indias economic trajectory, emphasising agriculture, MSMEs, investment, and exports as the four primary growth engines. With a fiscal deficit target of 4.4% of GDP, the government reinforced fiscal prudence while allocating Rs.11.21 Lakh Cr for capital expenditure (3.1% of GDP) to drive infrastructure development. The February 2025 Budget marked a shift in approach, with the government proposing substantial personal tax cuts. Effective April 1, 2025, individuals earning up to Rs.12 Lakh annually will be fully exempt from income tax. Economists estimate that the resulting Rs.1 Lakh Cr in tax savings could boost consumption by Rs.3-3.5 Lakh Cr, potentially increasing the nominal private final consumption Expenditure (PFCE) by 1.5-2% of its current Rs.200 Lakh Cr.

Free trade agreement: In a post-Balance Sheet development, India and the United Kingdom announced a free trade agreement to boost strategic and economic ties. This could lead to a significant increase in the export competitiveness of Indian shipments in the UK across the textiles, toys, leather, marine products, footwear, and gems & jewellery sectors. About 99% of Indian exports to UK will enjoy zero-duty access tariff cuts; India will cut tariffs on 90% of tariff lines and 85% could become fully duty-free within 10 years.

Pay Commission impact: The 8^th Pay Commissions awards could lead to a significant salary revision for nearly ten million central government employees. Historically, Pay Commissions have granted substantial pay hikes along with generous arrears. For instance, the 7^th Pay Commission more than tripled its monthly salaries, raising the range from Rs.7,000 to Rs.90,000 to Rs.18,000 to Rs.12.5 Lakh, triggering a widespread ripple effect.

Monsoons: The India Meteorological Department predicted an ‘above normal monsoon in 2025. This augurs well for the countrys farm sector and a moderated food inflation outlook.

Easing inflation: Indias consumer price index-based retail inflation in March 2025 eased to 3.34%, the lowest since August 2019, raising hopes of further repo rate cuts by the Reserve Bank of India.

Deeper rate cuts: In its February 2025 meeting, the Monetary Policy Committee (MPC) reduced policy rates by 25 basis points, reducing it to 6% in its first meeting of FY 2025-26. Besides, Indias CPI inflation is forecasted at 4% for the fiscal year 2025-26.

Lifting credit restrictions: In November 2023, the RBI increased risk weights on bank loans to retail borrowers and NBFCs, significantly tightening credit availability. This led to a sharp slowdown in retail credit growth from 20-30% to 9-13% between September 2023 and 2024. However, under its new leadership, the RBI has prioritised restoring credit flow. Recent policy shifts have removed restrictions on consumer credit, postponed higher liquidity requirements for banks, and are expected to rejuvenate retail lending.

(Source: CNBC, Press Information Bureau, Business Standard, Economic Times, World Gold Council, Indian Express, Ministry of External Affairs, Times of India, Business Today, Hindustan Times, Statistics Times)

Indian real estate sector review

The Indian real estate sector is estimated to reach a market size of USD 332.85 Bn in 2025 and is projected to grow to USD 985.80 Bn by 2030, registering a CAGR of 24.25% during the forecast period. Despite this growth, the country faces a housing shortfall-currently, only three houses are built per 1,000 people annually, compared to the required rate of five. The current urban housing shortage stands at approximately 10 Mn units, and to meet the demands of a growing urban population, an additional 25 Mn affordable homes will be needed by 2030. By 2047, the sector is expected to expand to USD 5.8 Trn, reflecting consistent growth over the next two decades.

After a strong performance in 2023, the residential segment experienced a mixed year in 2024, largely due to the impact of general and state elections. Both new launches and housing sales saw a decline, while average residential prices continued to rise. According to CBRE, the sector remained resilient in 2024, with annual sales crossing 300,000 apartment units for the second consecutive year. Demand was driven by rising household incomes, improved infrastructure, and a growing preference for homeownership-especially in Tier-I cities such as Mumbai, Pune, and Bengaluru. The mid-end housing segment (Rs.45 Lakh–1 Cr) led the market, accounting for over 40% of total sales, followed by the high-end segment (Rs.1–2 Cr), which contributed around 27%. Notably, cities like Pune and Noida, traditionally mid-income strongholds, witnessed increased demand for high-end homes, reflecting evolving buyer aspirations. The luxury segment posted a 75% year-on-year growth in sales, fuelled by Rs.NIs, NRIs, and the upper-middle class, particularly in Delhi-NCR, Mumbai, and Hyderabad. Overall homeownership sentiment remained robust, with home loan disbursements rising 11% year-on-year to cross Rs.29 Lakh Cr by December 2024, largely driven by first-time homebuyers.

New residential unit launches in Indias top eight cities reached approximately 3.75 Lakh units in FY24-25, up 5% from 3.56 Lakh units in FY24. This indicates a measured approach by developers to maintain market balance and avoid oversupply. Housing sales in FY24-25 reached around 3.53 Lakh units, also up by 5% year-on-year, underscoring sustained buyer confidence and market resilience.

This performance-despite elevated interest rates and property prices-highlights the sectors strong underlying demand fundamentals and reinforces real estates position as a preferred investment class.

According to Anarock, inventory overhang across the top seven cities stood at 14 months at the end of CY24, reflecting a 2% decline from 2023 levels and a substantial 62% drop from the 30-month overhang in 2019. This reduction was primarily due to robust buyer demand and a cautious supply approach by developers, resulting in improved market alignment and operational efficiency.

CY24 also saw record-breaking investment inflows in Indias real estate sector, reaching an all-time high of USD 11.4 Bn-a 54% increase over 2023. Foreign investors accounted for more than 25% of the total investments, with Singapore leading at 36% of the foreign share, followed by significant contributions from the United States, Canada, and a growing presence from the UAE. Looking ahead to 2025, the residential real estate segment is well-positioned for continued growth, supported by strong end-user demand, healthy economic indicators, and favourable home loan rates. The mid-income and premium MIG housing categories are expected to lead demand, driven by the expanding base of Rs.NIs and URs.NIs. With the election-related slowdown now past, developers are expected to ramp up launches from their robust project pipelines, setting the stage for a year of renewed momentum.

(Source: Business Standard, Economic Times)

Industry trend

City	Launches			Sales
	FY24	FY25	Change	FY24	FY25	Change
Mumbai	92,579	96,913	5%	90,314	97,374	8%
NCR	63,056	59,082	-6%	60,137	56,375	-6%
Bengaluru	52,188	59,403	14%	53,789	54,733	2%
Pune	44,190	62,486	41%	50,730	54,745	8%
Hyderabad	47,139	43,534	-8%	34,130	36,883	8%
Ahmedabad	22,307	22,512	1%	16,561	18,476	12%
Chennai	16,670	17,657	6%	15,220	16,645	9%
Kolkata	18,573	14,404	-22%	15,435	17,310	12%
Total	3,56,702	3,75,991	5%	3,36,316	3,52,541	5%

Key demographics

Ahmedabad: In calendar year 2024, Ahmedabads real estate sector posted a landmark performance, achieving the highest residential unit sales in a decade and record-breaking Office space transactions. Residential sales grew 15% year-on-year, rising from 16,113 units in 2023 to 18,426 units in 2024. The mid-income housing segment, particularly properties priced between Rs.50 Lakh and Rs.1 Cr, led the market, contributing 43% of total sales. Properties priced under Rs.50 Lakh accounted for 35% of Rs.2 2024 sales, while demand in the premium category strengthened, with the share of homes priced above Rs.1 Cr increasing from 16% to 22%.

New launches remained strong, with 22,043 residential units introduced during the year, reflecting robust supply-side momentum. Rs.2 2024 marked the highest half-yearly sales in a decade, increasing 12% from 8,131 units in Rs.2 2023 to 9,085 units. At the state level, Gujarats real estate market demonstrated resilience in FY 2024–25. Despite a dip in demand during the final quarter, the market saw a rise in project registrations. According to the Gujarat Real Estate Regulatory Authority (GujRERA), 1,823 new projects were registered during the fiscal—up 6% from 1,713 in the previous year.

Ahmedabads Office market, which averaged 1 to 1.5 Mn sq. ft. in annual transaction volume pre-pandemic, has shown consistent recovery since 2022. This has been driven by business expansion within the city and its emerging economic stature, bolstered by the establishment of the International Financial Services Centres Authority (IFSCA) in 2020 and strong government support. Office space transactions reached a historic high of 3 Mn sq. ft. in 2024, up 64% year-on-year—nearly double the pre-pandemic average—affrming the citys growing importance as a commercial hub. Average transacted rents increased by 5% year-on-year, reaching Rs.44 per sq. ft. per month.

(Source: Times of India)

Key demographics

Ahmedabad

In calendar year 2024,

Ahmedabads real estate sector posted a landmark performance, achieving the highest residential unit sales in a decade and record-breaking Office space transactions. Residential sales grew 15% year-on-year, rising from 16,113 units in 2023 to 18,426 units in 2024. The mid-income housing segment, particularly properties priced between Rs.50 Lakh and Rs.1 Cr, led the market, contributing 43% of total sales. Properties priced under Rs.50 Lakh accounted for 35% of Rs.2 2024 sales, while demand in the premium category strengthened, with the share of homes priced above Rs.1 Cr increasing from 16% to 22%.

New launches remained strong, with 22,043 residential units introduced during the year, reflecting robust supply-side momentum. Rs.2 2024 marked the highest half-yearly sales in a decade, increasing 12% from 8,131 units in Rs.2 2023 to 9,085 units. At the state level, Gujarats real estate market demonstrated resilience in FY 2024–25. Despite a dip in demand during the final quarter, the market saw a rise in project registrations. According to the Gujarat Real Estate Regulatory Authority (GujRERA), 1,823 new projects were registered during the fiscal-up 6% from 1,713 in the previous year.

Ahmedabads Office market, which averaged 1 to 1.5 Mn sq. ft. in annual transaction volume pre-pandemic, has shown consistent recovery since 2022. This has been driven by business expansion within the city and its emerging economic stature, bolstered by the establishment of the International Financial Services Centres Authority (IFSCA) in 2020 and strong government support. Office space transactions reached a historic high of 3 Mn sq. ft. in 2024, up 64% year-on-year-nearly double the pre-pandemic average-affirming the citys growing importance as a commercial hub. Average transacted rents increased by 5% year-on-year, reaching Rs.44 per sq. ft. per month.

(Source: Times of India)

Bangalore

During the calendar year 2024, Bengalurus residential real estate market witnessed a 2% increase in housing sales compared to 2023, driven by rising demand for luxury properties, particularly those priced between Rs.2 Cr and Rs.5 Cr (Source: Knight Frank India). The city recorded sales of 55,362 units in 2024, up from 54,046 units in the previous year, representing a 10% year-on-year growth and underscoring a significant influx of new project launches. This surge contributed to Bengaluru registering its highest number of new launches in a decade, with developers increasingly focusing on luxury and ultra-premium residential offerings.

The South Bengaluru micro-market maintained its leadership position in both sales and new launches during 2024. The citys ongoing infrastructure development and dynamic economic environment continue to sustain positive momentum in residential sales. The majority of transactions occurred in key areas such as Whitefield in the eastern IT corridor, and Hebbal and Yelahanka in the northern part of the city. North Bengaluru, in particular, emerged as one of the fastest-growing residential zones, with substantial increases in both sales and launches during the second half of 2024. This growth is attributed to its proximity to Kempegowda International Airport and ongoing infrastructure projects, including the Blue Line metro, which are transforming Hebbal, Devanahalli, and Bellary Road into thriving residential and commercial hubs.

In North Bengaluru, residential prices have appreciated across prominent locations-Hebbal, Yelahanka, and Thanisandra-bringing them at par with those in the eastern IT corridor of Whitefield, where prices range from Rs.6,000 to Rs.11,000 per sq ft. These rates have now surpassed prices in the southern IT corridor of Electronic City, where residential rates range between Rs.5,000 and Rs.7,500 per sq ft. Among the top eight cities in India, Bengaluru leads in the Rs.1–2 Cr ticket size segment, with 19,744 units sold, accounting for 22% of the total 90,814 units sold across these markets. This segment saw a 45% year-on-year increase in volume, rising from 13,626 units in 2023. The highest growth in Bengalurus residential sector was recorded in the Rs.2–5 Cr segment, which surged by 91% year-on-year to 9,584 units, up from 5,014 units in 2023. Sales in the Rs.5–10 Cr and Rs.10–20 Cr segments also experienced significant increases, growing by 58% and 20% year-on-year, respectively.

Conversely, the Rs.50 Lakh to Rs.1 Cr segment recorded a 22% decline, with 21,000 units sold compared to 26,836 units in 2023. The most pronounced decline was in the Rs.50 Lakh and below category, which dropped by 46%, from 8,141 units in 2023 to 4,388 units in 2024. Developers have responded to the increasing demand for luxury housing by offering expansive layouts and high-end amenities—features that have been well-received by homebuyers. Bengaluru is witnessing a distinct shift in buyer preference, with heightened interest in higher-ticket homes and a corresponding migration away from lower-priced segments.

This expansion in the luxury segment, especially during a period of elevated residential prices, highlights the maturing nature of Bengalurus residential market and the evolving profile of its buyers. The citys vibrant startup ecosystem has created a new class of affuent entrepreneurs and CXOs, while the exponential growth of the IT/ITeS sector has led to a substantial rise in senior-level professionals with enhanced purchasing power. Moreover, post-pandemic preferences for larger, amenity-rich homes have further accelerated the transition towards premium and luxury residences, with many mid-segment homeowners upgrading to higher-end properties.

The appeal of the region has been further bolstered by the introduction of premium villas, plotted developments, and larger apartments that cater to high-income buyers seeking exclusivity. The development of new business districts and economic parks has also given a fillip to the residential market, positioning North Bengaluru as a critical driver of the citys overall real estate growth. As Indias Silicon Valley, Bengaluru is poised for continued growth in its residential market through 2025, supported by the rapid expansion of its technology and startup ecosystems. The citys record-breaking commercial Office space absorption and the sustained growth of the IT-ITeS sector are expected to further fuel housing demand in the near term.

(Source: Hindustan Times)

Mumbai Metropolitan Region (MMR)

In the calendar year 2024, Mumbais real estate sector achieved a landmark performance, recording its highest-ever annual property registrations at over 1.41 Lakh units—an 11% rise compared to the previous year. Stamp duty collections also witnessed a 12% increase, surpassing Rs.12,138 Cr. This surge in activity was underpinned by robust economic fundamentals, enhanced infrastructure, and a growing preference among buyers for larger, premium residences. These trends are projected to persist into 2025, further cementing Mumbais stature as Indias largest and most expensive housing market.

The consistent growth in property registrations and government revenue points to a healthy demand environment, particularly within the premium and spacious housing categories. This reflects a shift in buyer behaviour, with increased focus on long-term value and improved living quality. Infrastructure enhancements across the city—especially those related to connectivity and urban development—have significantly influenced buyer sentiment. These upgrades are reshaping residential preferences and fueling interest in areas with better accessibility and livability. Analysts believe that the continued emphasis on infrastructure development and sound urban planning will drive future demand and influence price dynamics.

The demand for larger, higher-value homes has become more evident. In December 2024, homes priced above Rs.2 Cr made up 23% of all property registrations-up from 18% in December 2023-amounting to 2,879 transactions. This indicates a definitive shift towards high-end housing. In contrast, the share of homes priced below Rs.50 Lakh declined from 30% to 25%. Similarly, compact units (up to 500 sq ft) saw a sharp fall in share - from 51% to 35% - while mid-sized apartments (1,000–2,000 sq ft) became more popular, with their share rising from 8% to 12%. The proportion of large apartments (over 2,000 sq ft) remained steady at 2%.

(Source: Economic Times)

Peripheral markets in MMR emerged as key growth drivers of the regions residential real estate sector in 2024. The Peripheral Central and Western Suburbs together accounted for 45% of new launches and 41% of total sales across MMR. This marks a notable shift in market dynamics, driven by strategic developer moves and evolving buyer preferences. Three factors support this transition: First, limited land availability and high property costs in central Mumbai are pushing developers to the periphery, where larger and more cost-efficient plots are accessible. Second, large-scale infrastructure initiatives-such as metro extensions, the coastal road, and the trans-harbour link-have greatly improved connectivity, increasing the attractiveness of peripheral micro markets. Third, post-pandemic demand for larger homes at competitive prices has made these areas appealing due to their better space-to-price proposition. Looking ahead, MMRs residential market is poised for strong growth in 2025, supported by the completion of major infrastructure projects, particularly the metro network and coastal road. The city is expected to witness heightened redevelopment activity in established micro markets, adding high-end inventory to the supply pipeline. Suburban areas along new infrastructure corridors are set to become preferred residential zones. The trend of compact housing in space-constrained but high-demand areas is likely to persist, delivering functional living spaces. Additionally, Mumbai is expected to see a growing emphasis on sustainable housing and waterfront developments, leveraging the regions unique coastal advantages. As connectivity improves and commute times reduce, far-flung suburbs will become more viable and attractive for homebuyers. New project launches are expected to favour mixed-use developments in locations with improving social infrastructure.

Pune

The Pune residential market demonstrated notable shifts in CY2024, with new launches dropping to 60,500 units—a substantial 28% decline compared to 83,600 units in 2023. Despite this sharp reduction in fresh supply, sales remained relatively stable at 81,100 units, reflecting only a 6% dip from 86,700 units recorded in the previous year. This contrast between declining launches and resilient sales highlights a strategic recalibration by developers—prioritising steady inventory absorption while controlling new supply.

The slight contraction in sales can largely be attributed to higher property prices and rising home loan interest rates, both of which weighed on affordability for potential homebuyers. Regionally, North Pune maintained its leadership position, contributing 36% of the total launches and 39% of all residential sales in 2024. West Pune followed closely, accounting for 30% of launches and 31% of sales volume.

From a budget perspective, mid-segment homes (Rs.40–Rs.80 Lakh) remained the most sought-after, comprising 42% of all new launches in the city. The affordable segment (under Rs.40 Lakh) formed 19% of launches, while the high-end segment (Rs.80 Lakh–Rs.1.5 Cr) made up 31% of the supply. The luxury and ultra-luxury segments (above Rs.1.5 Cr) contributed the remaining 8%, indicating that mid-income housing continues to be the dominant driver of Punes residential market.

The shrinking share of mid-segment launches is partly a result of increased land acquisition and construction costs, which have nudged developers toward higher-priced offerings to protect margins. Simultaneously, the luxury and ultra-luxury categories (above Rs.1.5 Cr) have exhibited consistent growth, with their combined share rising from 5% in 2021 to 8% in 2024. This upward trajectory signals rising developer confidence in Punes premium housing segment, supported by the citys sustained economic development and the evolving aspirations of an upwardly mobile population.

Looking ahead to 2025, Punes residential market is projected to maintain a positive outlook, propelled by the ongoing expansion of the IT-ITeS industry. Increased development activity is anticipated in emerging micro-markets, especially those located along the planned Pune Ring Road and metro corridors.

(Source: Anarock)

Growth drivers

Urbanisation: By 2030, 38% of Indias population will live in urban areas, further fueling the need for housing, Office spaces, and retail establishments. Population growth also increases the demand for infrastructure like roads, schools, and hospitals, making it a key driver for the real estate sectors expansion.

Capital expenditure: For FY 2025-26, the Indian government allocated Rs.11.20 Trn for capital expenditure, reflecting a 9.8% increase from the previous year, highlighting the governments commitment towards infrastructure development as a catalyst for economic growth and job creation.

Rising disposable incomes: Indias per capita disposable income increased from USD 2.11 thousand in 2019 to USD 2.54 thousand in 2023, with projections to reach USD 4.34 thousand by 2029. As consumers gain more purchasing power, there is a growing demand for higher-end residential and commercial properties. This trend is driving the demand for modern, well-designed homes and Office spaces, particularly in urban developments and luxury real estate projects.

Technological advancements: The rise of smart technologies in homes and commercial buildings is shaping the future of the Indian real estate market. Innovations such as home automation, energy-efficient designs, and smart building systems are becoming increasingly popular among consumers. As these technologies evolve, they are driving the growth of modern residential and commercial spaces that offer enhanced convenience, sustainability, and connectivity, attracting tech-savvy buyers and tenants.

Growing demand for sustainable developments: As awareness of environmental issues increases, there is a growing preference for eco-friendly and sustainable real estate developments. Consumers are prioritising properties that incorporate green building practices, energy-efficient designs, and sustainable materials. This shift is prompting real estate developers to adopt more sustainable practices, such as LEED-certified buildings and eco-friendly construction methods, to meet the growing demand for environmentally responsible developments.

(Source: Data bridge market research, IBEF, Economic times, Credence Research, IMARC, Globaldata)

Union Budget allocation

The government has allocated Rs.10 Trn over the next five years to the Pradhan Mantri Awas Yojana (PMAY), with a focus on constructing 30 Mn new affordable homes. This includes Rs.2.2 Trn earmarked specifically for urban housing, benefiting approximately 10 Mn urban poor and middle-class families. A new scheme to assist eligible middle-income individuals and families residing in rented accommodations, chawls, slums, and unauthorised colonies in purchasing or constructing their own homes.

The Union Budget 2025–26 has allocated Rs.11.21 Trn to the infrastructure sector, marking a 0.9% increase from the previous year. This includes roads Rs.2.87 Trn for the Ministry of Road Transport and Highways, an annual increase of around 3%.

(Source: Business standard, Economic times, EY US, Indian Infrastructure)

Company overview

Arvind SmartSpaces Ltd (ASL), founded in 2008 in Ahmedabad as a wholly-owned subsidiary of Arvind Limited, operates as the real estate arm of the Lalbhai Group, a USD Rs.1.7 Bn conglomerate. Specialising in the development of residential properties, ASL focuses on villas, apartments, and plots designed for middle- to high-income buyers. Its portfolio includes integrated townships that offer a mix of executive golf courses, villas, apartments, retail spaces, commercial centers, and recreational facilities. In addition, ASL takes on select commercial and industrial developments. As of FY24-25, the company has completed projects covering 6.5 Mn square feet, with ongoing developments spanning 35.9 Mn square feet and upcoming projects estimated at 64.1 Mn square feet.

Project overview

Arvind SmartSpaces Ltd is dedicated to developing real estate projects across residential, commercial, and industrial sectors. As of March 31, 2025, the companys ongoing and pipeline projects are divided into mid-segment projects (87%), premium/ luxury projects (10%), and affordable projects (3%).

Companys strengths

Strong promoter relationships

Arvind SmartSpaces Ltd (ASL) leverages its strong ties with the Lalbhai Group, which includes prominent entities such as Arvind Limited and Arvind Fashions Limited, all operating under the same brand umbrella. The parent companys ownership of 50.27% in ASL highlights its confidence and commitment to ASLs growth. Additionally, the shared presence of Directors on the Boards of these companies strengthens the connection, providing significant support to ASL.

Streamlined operations with low fixed costs

ASL has effectively minimised its fixed costs by centralising key operations while outsourcing non-essential tasks and construction activities to external partners. This strategy is backed by a lean in-house team of around 434 employees, with 73% of its projects being executed through joint development collaborations.

Credit rating enhancement

ASLs credit profile has been affirmed by Indian Ratings and Research raising its Long-Term Issuer Rating to ‘IND A+/Stable. This affirmation reflects the companys strong financial collections, which have positively influenced its pre-sales to net debt and net debt to working capital ratios. With solid internal cash flows and a reduction in debt, ASL is well-positioned to manage its liabilities, setting the stage for significant growth.

Strong sales and steady cashflow

In the fiscal year 2025, Arvind SmartSpaces Limited (ASL) saw a notable increase in its pre-sales, which grew to Rs.1,271 Cr, driven by supported by the sales of ongoing projects and the launch of new projects or additional phases. This enabled a net operating cash flow of Rs.337 Cr.

Diversified geographic presence across varied ticket size

ASLs projects are moderately diversified in terms of ticket size and geographic presence. Currently, 10% of its projects are in the luxury segment, 87% are mid-segment, and 3% focus on affordable housing. The companys primary focus remains on residential projects, with a strong presence in Ahmedabad and Bangalore. During the year, ASL entered Mumbai Metropolitan Region (MMR) with a ~Rs.1,500 Cr horizontal township project. This project is located near Khopoli, Mumbai 3.0 and is the companys first project in the MMR region.

Horizontal development

The COVID-19 pandemic and the widespread adoption of hybrid work models have profoundly influenced homebuyer preferences. Increasingly, buyers are prioritising larger, independent homes that emphasise health, privacy, and security. This shift has also sparked renewed interest in land ownership, particularly within the plotting segment, where built-to-suit options offer flexibility and greater control over design and space utilisation.

Low-density or horizontal housing formats—such as villas, villaments, and plotted developments—continue to gain traction, especially in the premium segment. The preference for spacious and private living environments is being driven by the need for flexible work-from-home arrangements and a heightened focus on wellness. These horizontal projects typically feature personalised designs, expansive open spaces, advanced amenities, and green landscapes, meeting the modern homebuyers aspirations for quality living in a tranquil setting.

The growing appeal of horizontal real estate developments is reshaping urban and suburban landscapes. Unlike high-rise apartments, horizontal formats such as gated villa communities and plotted townships offer residents a unique combination of independence, low-density living, and community-driven design. These projects often include features like wide internal roads, private gardens, outdoor fitness zones, and smart-home infrastructure-enhancing the quality of life and catering to the demand for a more relaxed and connected lifestyle. With greater work-life integration becoming the norm, these formats are particularly attractive to families seeking long-term residential investments outside congested urban centers.

Luxury real estate has also undergone a transformation. Once limited to standalone bungalows in prime city areas, todays luxury segment encompasses branded horizontal developments, penthouses, and sky villas integrated within expansive townships. These projects combine premium customisations with modern infrastructure and cutting-edge technology, appealing to a new generation of affluent buyers seeking comfort, security, and a holistic lifestyle experience. Horizontal luxury developments are increasingly seen not just as residences but as lifestyle destinations that foster community living while maintaining exclusivity. While horizontal developments present significant opportunities, they also come with challenges such as complex land aggregation and regulatory compliance.

However, when approached strategically, these projects offer long-term value creation through scale, community infrastructure, and enhanced liveability.

Arvind SmartSpaces has long been a frontrunner in the plotted development and villa segments, with a strong footprint in Ahmedabad and surrounding regions. Even before the pandemic, the company recognised the potential of horizontal formats and focused on offering thoughtfully designed second homes. Post-2020, Arvind SmartSpaces has strengthened its position with differentiated offerings, including integrated townships featuring golf courses, luxury clubhouses, and nature-centric designs. Backed by a proven track record and innovative approach, the company is well-equipped to harness the accelerating demand for plotted and horizontal real estate developments across key micro-markets.

The Arvind brand

The ‘Arvind brand enjoys strong national recognition, rooted in the Lalbhai Groups legacy of over 120 years across diverse sectors including textiles, apparel, advanced materials, water solutions, omnichannel retail, telecommunications, and heavy industry. As a professionally managed conglomerate with a turnover of USD 1.7 Bn, the group is renowned for its unwavering commitment to core values, ethical practices, robust governance, and social responsibility. This solid reputation significantly enhances Arvind SmartSpaces credibility and brand equity, enabling it to effectively pursue joint development opportunities, enter new geographies, build strategic partnerships, and deepen relationships with customers, service providers, investors, and financial institutions.

Financial overview

Arvind SmartSpaces, along with its subsidiaries, primarily operates in the residential real estate segment, with a strong presence across Ahmedabad, Bengaluru and Pune. The Company is currently executing 22 projects through a mix of owned land, joint ventures, and joint development agreements. To date, it has successfully delivered 14 projects, encompassing a total development area of 6.5 Mn square feet.

In FY24-25, ASL registered a booking value of Rs.1,271 Cr, a YoY growth of 15 %, where the number of units sold stood at 1,370 units. Bangalore bookings stood at Rs.474 Cr, contributing 37% to the total annual bookings. Further, new launches continued to perform well in new micro markets. In FY24-25, ASL launched two projects successfully including Arvind Aquacity and The Park, which contributed 67% (Rs.855 Cr) by annual booking value.

In FY24-25, ASL recorded a collection of Rs.942 Cr, a YoY growth of 7%; highlighting the strong operational cycle of new sales, construction and delivery. During the year, Operating Cash Flows stood at Rs.337cr as against Rs.458 Cr last year. The net-debt equity ratio on a consolidated basis as on March 31, 2025 is 0.04 compared to (0.10) as on March 31, 2024. During the year, ASL consolidated revenue from operations grew by 109% to Rs.713 Cr and Profit attributable to equity holders increased by 133% to Rs.119 Cr. FY24-25 was another successfully year for the Company from a project addition perspective with a cumulative new business development topline potential Rs.4,450 Cr* added during the year. ASL added projects in Ahmedabad, Bengaluru and Mumbai Metropolitan Region.

During Q1 FY24-25 signed new business development with a topline potential of ~Rs.410 Cr*. Remainder phase of Forest Trails Sarjapur, Bengaluru to be developed as a high-rise project comprising a saleable area of 3.2 Lakh sq ft with a top line potential increased by of ~Rs.205 Cr. Further, acquired additional 42 acres at Uplands 2.0 & 3.0. which added Rs.205 Cr to the top line.

During Q2 FY24-25 acquired new high-rise project in ITPL Road, Bengaluru with a top-line potential of ~Rs.600 Cr spread across 2.9 acre and saleable area of 4.2 Lakh sq. ft.

During Q3 FY24-25 entered Mumbai Metropolitan Region (MMR) with a ~Rs.1,500* Cr horizontal township project, spread over ~ 92 acre. The project is located near Khopoli in Mumbai 3.0. Additionally acquired a project to develop a mega industrial park in Ahmedabad spread over ~440 acre with a top-line potential of ~ Rs.1,350* Cr

During Q4 FY24-25 added new plotted development project in Sanand, Ahmedabad with a topline potential of Rs.600 Cr spread across 150 acre and a salable area of 6.6 mn sq. ft.

*On the basis of the current business assumptions

Project portfolio

The description of all completed projects of the Company until the close of FY24-25 is provided below:

State	Project	Total Saleable	Booked (Sq.ft.)	Unsold Inventory	Booking Value	Revenue recognised	^Collections (Rs. Cr.)	Average Price (Price till date)
		(Sq.ft.)		(Sq.ft.)	(Rs. Cr.)	(Rs. Cr.)		(Rs. / Sq.ft.)
Gujarat	Aavishkaar	5,45,468	4,49,215	96,253	129	12	124	2,865
	Alcove	10,32,660	9,84,150	48,510	25	25	25	251
	Citadel	1,01,859	10,18,859	-	55	55	55	5,407
	Megaestate	59,180	28,752	30,428	9	8	8	3,256
	Megapark	5,01,222	4,83,860	17,362	29	28	27	591
	Megatrade	82,526	74,550	7,976	32	3	32	4,293
	Parishkaar/ Trade Square	9,51,809	9,15,809	-	254	254	254	2,776
Karnataka	Belair	4,69,620	4,23,373	46,247	286	196	249	6,755
	Expansia	1,40,268	1,40,268	-	75	75	75	5,358
	Greatlands	9,52,854	7,61,657	1,91,197	317	275	300	4,158
	Oasis	5,72,262	5,63,878	8,384	325	323	324	5,770
	Skylands	4,91,113	4,91,113	-	267	267	267	5,443
	Sporcia	5,01,491	4,99,990	1,501	235	235	234	4,692
	Total	65,01,284	59,96,931	5,04,353	2,098	1,942	2,021

The description of all ongoing projects of the Company is provided in the table below:

State	Project	Total Saleable	Booked (Sq.ft.)	Unsold Inventory	Booking Value	Revenue recognised	^Collections (Rs. Cr.)	Average Price (Price till date)
		(Sq.ft.)		(Sq.ft.)	(Rs. Cr.)	(Rs. Cr.)		(Rs. / Sq.ft.)
Gujarat	Aquacity	1,02,80,457	63,54,936	39,25,521	675	-	100	1,062
	Chirping Woods	13,39,092	10,89,275	2,49,817	129	2	109	1,180
	Forreste 1-4	29,58,846	24,10,211	5,48,634	346	32	327	1,437
	Forreste 5	9,43,164	5,47,500	3,95,664	124	5	68	2,265
	Fruits of Life	17,45,853	15,02,775	2,43,078	146	-	137	969
	High grove	43,77,033	24,23,835	19,53,198	230	98	225	951
	Rhythm of Life	7,98,858	7,63,659	35,199	93	-	24	1,214
	Uplands 2.0 & 3.0, Adroda	67,50,136	48,89,880	18,60,256	441	-	306	902
	Uplands One	31,92,901	29,31,050	2,61,849	507	481	501	1,731
	Uplands Two	12,89,128	10,83,204	2,05,924	331	119	293	3,053
Karnataka	Forest Trails (Sarjapur JD)	9,71,736	4,36,550	5,35,186	323	-	63	7,394
	Orchards	5,70,200	3,94,907	1,75,294	216	-	148	5,481
	The Edge	1,68,224	56,994	1,11,230	40	-	26	7,077
	The Park	5,06,304	2,78,304	2,28,000	180	-	15	6,485
	Total	3,58,91,933	2,51,63,082	1,07,28,851	3,781	735	2,341

*Forreste is a project under the Development Model (DM). The revenue recognition for Forreste for Arvind SmartSpaces Ltd. would be limited to DM fees only. During the year, the Company launched Uplands 2.0 & 3.0, Forest Trails, Arvind Orchards and Rhythm Of Life.

Financial performance (Standalone)

Equity Share Capital	The equity share capital of the Company as on March 31, 2025, stood at Rs.4,556.45 Lakh compared to Rs.4,534.40 Lakh as on March 31, 2024.
Net debt-equity ratio	The net debt equity ratio of the Company as on March 31, 2025, was at 0.30 compared to 0.04 as on March 31, 2024.
Revenue	The revenue from operations of the Company was Rs.12483.36 Lakh in the FY24-25 against Rs.15,077.87 Lakh in FY23-24.
EBITDA/Operating Margin	EBITDA margin during the financial year FY24-25 stood at 25% compared to 50% for the previous financial year.
Finance Costs	Interest and financial charges for the financial year FY24-25 was Rs.1052.55 Lakh compared to Rs.572.69 Lakh in the previous year, increase by 84%.
Net Profit	Net profit available for appropriation for the year FY24-25 stood at Rs.1350.65 Lakh compared to Rs.5,513.34 Lakh in the previous year.
Earnings Per Share (EPS)	The Companys Basic Earnings Per Share (EPS) during the current year was Rs.2.97 compared to Rs.12.17 in the previous year and Diluted EPS is Rs.2.94 as compared to Rs.12.05 in the previous year
Debtors Turnover	The Companys debtors turnover ratio during the current year was 77.30 compared to 66.26 in the previous year.
Inventory Turnover	The Companys inventory turnover ratio during the current year was 0.12 compared to 0.23 in the previous year
Interest Coverage Ratio	The Companys interest coverage ratio during the current year was 0.98 compared to 1.37 in the previous year.
Current Ratio	The Companys current ratio as on March 31, 2025 was 1.14 compared to 1.12 in the previous year.
Debt-Equity Ratio	The Companys debt equity ratio as on March 31, 2025 was 0.34 compared to 0.11 in the previous year mainly on account of net increase in term loan by Rs.1,500 Lakh during the year.
Net Profit Margin (%)	The Companys net profit margin ratio during the current year was 10% compared to 36% in the previous year.
Details of any change in Return on Net Worth	The Companys return net worth ratio as on March 31, 2025 was 4% compared to 12% in the previous year mainly due to decreased revenue from operations.

Financial performance (consolidated)

Equity Share Capital	The equity share capital of the Company as on March 31, 2025, stood at Rs.4,556.45 Lakh compared to Rs.4,534.40 Lakh as on March 31, 2024.
Net debt-equity ratio	The Net debt equity ratio of the Company as on March 31, 2025, was at 0.37 compared to 0.09 as on March 31, 2024.
Revenue	The revenue from operations of the Company was Rs.71330.49 Lakh in the FY24-25 against Rs.34117.72 Lakh in FY23-24.
EBITDA/Operating Margin	EBITDA margin during the financial year FY24-25 stood at 25.95% compared to 34.53% for the previous financial year.
Finance Costs	Interest & Financial Charges for the financial year FY24-25 was Rs.2081.01 Lakh compared to Rs.4093.81 Lakh in the previous year, a decrease by 49%, which was predominantly on account of redemption of debentures of 40 Cr during the year.
Net Profit	Net profit available for appropriation for the year FY24-25 stood at Rs.11916.90 Lakh compared to Rs.5,109.08 Lakh in the previous year, an increase of 133%.
Earnings Per Share (EPS)	The Companys Basic Earnings Per Share (EPS) during the current year was Rs.24.28 compared to Rs.9.17 in the previous year and Diluted EPS is Rs.24.00 as compared to Rs.9.09 in the previous year.
Debtors Turnover	The Companys debtors turnover ratio during the current year was 81.99 compared to 123.89 in the previous year
Inventory Turnover	The Companys inventory turnover ratio during the current year was 0.23 compared to 0.08 in the previous year.
Interest Coverage Ratio	The Companys interest coverage ratio during the current year was 8.22 compared to 2.23 in the previous year.
Current Ratio	The Companys current ratio as on March 31, 2025 was 1.22 compared to 1.24 in the previous year
Debt-Equity Ratio	The Companys debt equity ratio as on March 31, 2025 was 0.35 compared to 0.17 in the previous year.
Net Profit Margin (%)	The Companys net profit margin ratio during the current year was 16.77% compared to 15.37% in the previous year.
Details of any change in Return on Net Worth	The Companys return net worth ratio as on March 31, 2025 was 17.13% compared to 15.96% in the previous year mainly due to increased profitability during the year

RISK MANAGEMENT

Economic risk	Mitigation
The real estate sector is susceptible to cash flow fluctuations driven by economic volatility, with downturns often leading to a sharp decline in demand.	ASL mitigates this risk by diversifying its operations across Ahmedabad, Bangalore, Pune, Surat, and the Mumbai Metropolitan Region. The company also adopts strong cost management practices and ensures adequate liquidity to navigate potential economic downturns.
Operational risk	Mitigation
ASL encounters operational challenges including delays in land acquisition, securing regulatory approvals, project execution, and rising construction costs, all of which can impact customer satisfaction.	The company addresses these risks through a structured framework that defines clear controls and accountability. Pricing decisions are made prudently to protect profit margins. ASL has implemented an Enterprise Resource Planning (ERP) system, further strengthened by SAP integration, to track project progress and manage deviations effectively. Its strong focus on corporate governance reinforces operational transparency and ensures compliance with regulatory requirements.
Project risk	Mitigation
Risks include potential cost overruns and slow sales, which can result in lower cash collections.	As of March 31, 2025, ASL had secured receivables of Rs.1,516 Cr from booked units, sufficient to cover the remaining construction costs of ongoing projects, excluding land costs in joint venture arrangements.
Interest rate risk	Mitigation
Volatile interest rates can lead to changes in borrowing costs and influence overall demand in the real estate market.	ASL mitigates this risk by maintaining healthy cash reserves, diversifying its funding sources, and closely monitoring cash flow and liquidity. As a result, the company was able to keep its borrowing costs low, at 10.1% as of March 31, 2025.
Liquidity risk	Mitigation
This risk can impact the companys ability to meet short-term obligations and complete projects on time, potentially resulting in higher financing costs and damage to its reputation.	With a net debt-to-equity ratio of 0.04 and an operating surplus cash flow of approximately Rs.337 Cr in FY24-25, ASL is well- positioned to raise additional financing while maintaining a healthy debt-to-equity level. The companys strong cash flow outlook provides confidence in meeting its funding requirements over the near to medium term.
Concentration risk	Mitigation
Dependence on a small	ASL mitigates risk by offering a diverse range of product types
number of projects or markets	across its operational regions, including plotted developments,
can expose the company to	villas, luxury homes, and middle-income group (MIG) housing.
revenue stream risks.
Raw material risk	Mitigation
Significant fluctuations in raw material prices can affect property prices and, if passed on to consumers, may also influence demand.	ASL has built a stable supply chain and secures fixed prices for essential materials over defined periods, carefully passing on any price increases to consumers when necessary.
Regulatory and political risk	Mitigation
Shifts in government policies or the introduction of new regulations can present risks to the real estate sector.	The company fosters strong relationships with government bodies at all levels, keeps abreast of regulatory changes, and has a crisis management plan in place to tackle potential political or regulatory challenges.

Customer-centricity

The Company implemented NPS (Net Promoter Score) during the year. Customer satisfaction is now measured by doing an NPS survey once every year across the ongoing and delivered projects. The feedback is gathered by way of Survey forms as well as calling. Customer relationships are now managed using Salesforce as the tool where timely responses are tracked and measured for inbound calls and emails. Each customer is assigned a dedicated relationship manager who is responsible for on-time client responses and query resolutions. We have provided our customers, the project specific customer care number and email ids to address their concerns and queries, A customer care portal was developed where customers access their property accounts and can reach respective relationship managers. Monthly Construction progress updates are shared with customer to get their project related information

We are also engaging customers with customers through various touchpoints like newsletter, festival events, get-together etc. by which we wish to enrich your living experiences through our community engagement initiatives and make your journey more memorable. Bookings by way of referrals stands at 22% for FY24-25.

Our customers have project specific ids to put forth any issues they have and our team members ensure to resolve the same. We are also using the ‘My gate app for the members residing in our schemes. They log-in their complaints through the application only and our team takes care to resolve the same in a timely manner.

During the year, several customer engagement activities, including Plumbing & Electrical Camp, Run to Inspire marathon, Uttarayan event, Shree Ram Vandana, Navratri, Holi and Musical Night events were organised across our projects.

Internal control and their adequacy

The company has an Internal Audit team and an Internal Control System, supported by an external audit firm and a group assurance team, tailored to the size, scale, and complexity of its operations. Both the Internal Audit team and external reviewers bring extensive experience and expertise in internal controls, operating systems, and standard operating procedures. The system is backed by approved, documented policies, guidelines, and procedures that align with industry best practices to monitor business and operational performance, ensuring business integrity and enhancing operational effciency. The Internal Audit team regularly assesses the adequacy of the internal control systems, compliance with operating procedures, and adherence to policies, conducting an annual audit of Internal Financial Controls. Based on the internal audit report, process owners implement corrective actions within a specified timeline to strengthen controls. Significant audit findings and corresponding corrective actions are presented to the Audit Committee of the Board of Directors on a quarterly basis.

ERP

The Company has maintained its focus on strengthening its IT infrastructure, encompassing both hardware and software enhancements. In FY 2022–23, it successfully implemented Salesforce, which is now actively used for lead management, customer relationship management (CRM), and tracking customer queries and response quality, along with related documentation. Building on this, the Company rolled out SAP in FY 2023–24. The integration of SAP with Salesforce has resulted in a robust, unified ERP system designed to support the Companys evolving business requirements and enable more informed decision-making.

Legal compliance tool

To ensure transparency and full compliance with applicable laws, the company has developed a comprehensive tool that covers the entire range of compliance requirements relevant to its business. This tool allows the company to track and ensure adherence to regulations within the specified timeframes. Additionally, it provides an opportunity to create an efficient plan for the go-to-market strategy for its projects.

Human resources management

The company recognises that the quality of its workforce is vital to its success and is committed to equipping employees with the skills and knowledge needed to adapt to technological advancements. Throughout the year, the company fostered positive relationships with its employees and focused on offering training and skill development opportunities to help them thrive in an evolving work environment. As of March 31, 2025, the company employed 434 permanent staff members.

Cautionary statement

Certain statements in this Management Discussion and Analysis, outlining the companys objectives, outlook, and expectations, may be considered "forward-looking statements" under applicable laws and regulations. Actual results may differ materially from those expressed or implied. Several factors, such as climatic conditions, economic changes affecting demand and supply, government regulations, taxation, natural disasters, and other factors beyond the companys control, can significantly impact its operations.