Balgopal Commercial Ltd Management Discussions

MACROECONOMIC REVIEW

The Indian economy is robust and remains the fastest growing large economy despite global uncertainties and strife. During FY 2025-26, the Indian economy maintained strong growth momentum despite an uncertain global environment marked by geopolitical tensions, trade- related uncertainties and volatility in global financial markets. As per the National Statistical Offices revised GDP series released in February 2026, real GDP growth for FY 2025-26 was estimated at 7.6%, while real Gross Value Added (GVA) growth was estimated at 7.7%. Quarterly real GDP growth was estimated at 6.7% in Q1, 8.4% in Q2 and 7.8% in Q3 of FY 202526.

The Economic Survey 2025-26 also highlighted a significant moderation in inflation; headline CPI inflation averaged about 1.7% during April-December 2025, compared with 4.7% in FY 202425. The easing in inflation, together with resilient domestic demand, investment activity and public capital expenditure, supported the overall growth environment. The construction and real estate sectors continued to benefit from urbanisation, infrastructure development and demand for residential and commercial assets. At the same time, global trade uncertainty, movements in commodity prices, financing conditions and financial-market volatility remained key risks to the outlook

Going forward, the Company will continue to monitor macroeconomic and market developments and evaluate business opportunities prudently.

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Company is principally focused on real estate and construction-related activities. The Indian real estate sector continues to present opportunities driven by urbanisation, infrastructure development, increasing demand for residential and commercial properties and continued development of urban centres.

The sector is also witnessing increasing emphasis on quality, timely execution, regulatory compliance, sustainability and efficient utilisation of resources. However, the industry remains subject to challenges including delays in statutory approvals, escalation in construction and input costs, availability of labour and materials, project execution risks and competitive pressures.

During FY 2025-26, the Company also earned income from sale of securities and derivative transactions undertaken as part of its investment and treasury activities. Such activities are incidental in nature and do not constitute the main business activity of the Company. The Indian derivatives market has witnessed exponential growth in recent years, bolstered by increased

retail participation, higher liquidity, regulatory support, and advancements in trading infrastructure. With the introduction of weekly options, increased product offerings by exchanges (NSE, BSE, MCX), and enhanced algorithmic access, the ecosystem continues to mature. The increased use of technology and data-driven trading models has also reshaped how participants engage with the market.

OPPORTUNITIES

• Growing demand for residential and commercial real estate driven by urbanisation and infrastructure development.

• Opportunities in real estate development, construction and allied activities.

• Increasing demand for quality and professionally managed real estate projects.

• Opportunities to leverage the capabilities and relationships of the group in the real estate sector.

• Selective deployment of capital in projects and assets offering appropriate risk-adjusted returns.

• Efficient management of investment and treasury resources, subject to prudent risk controls.

THREATS

• Changes in economic conditions and real estate market cycles.

• Delays in statutory and regulatory approvals.

• Escalation in construction, labour and other input costs.

• Project execution and completion risks.

• Increasing competition in the real estate and construction sector.

• Changes in interest rates, liquidity and financing conditions.

• Changes in applicable laws, regulations and government policies.

RISKS AND CONCERNS

The Companys principal risks arise from its real estate and construction-related activities, including market demand, project execution, regulatory approvals, construction and input costs, availability of resources, liquidity and financing conditions.

The Companys investment and treasury activities, including transactions involving securities and derivatives, are subject to market volatility and associated risks.

The Company seeks to identify, assess and mitigate these risks through prudent evaluation of business opportunities, appropriate financial and operational controls, regulatory compliance, periodic monitoring and review of its activities.

OUTLOOK:

The outlook for FY 2026-27 remains cautiously optimistic about its business prospects. The Company intends to focus on opportunities in real estate and construction-related activities, with emphasis on commercial viability, execution capability, regulatory compliance and prudent deployment of resources.

During June 2026, the Companys real estate business witnessed significant developments which have strengthened its development pipeline.

Sion Kokari Agar SRA Redevelopment Project, Mumbai:

M/ s. Esquire Real Estate & Bio-infocom Private Limited, a wholly owned subsidiary of the Company, received a Letter of Award from the Slum Rehabilitation Authority (SRA), Mumbai, for redevelopment of land admeasuring approximately 19,967.36 sq. metres situated at Sion Kokari Agar, Shaikh Mistry Road, Antop Hill, Mumbai. The Companys entitlement from the project towards the free-sale component is estimated at approximately 5.87 lakh sq. ft., with an estimated Gross Market Value (GMV) of approximately ?1,200 crore, subject to applicable development regulations, terms and conditions of the Letter of Award and receipt of requisite statutory and regulatory approvals.

Oshiwara Gokul CHSL Redevelopment Project, Mumbai:

M/ s. Dreamax Realtors, formerly known as M/ s. Lotus Realtors, a subsidiary of the Company, entered into a Supplemental Development Agreement with Oshiwara Gokul Co-operative Housing Society Limited for comprehensive redevelopment of the Societys land admeasuring approximately 2,531.62 sq. metres situated at Oshiwara, Jogeshwari (West), Mumbai. The Companys entitlement towards the free-sale component from the project is estimated at approximately 51,086 sq. ft., with an estimated Gross Market Value (GMV) of approximately ?200 crore, subject to applicable development regulations, contractual terms and receipt of requisite statutory and regulatory approvals.

These developments represent important additions to the Companys real estate development pipeline and are aligned with its strategic focus on real estate and construction-related activities. The Company will continue to evaluate and pursue commercially viable opportunities in the sector while maintaining prudent financial and operational discipline.

The Company remains focused on identifying suitable opportunities in residential and commercial real estate, urban redevelopment and allied construction activities, with emphasis on sustainable growth, regulatory compliance and efficient deployment of resources.

FINANCIAL REVIEW:

The summarized standalone audited financial performance of the Company is as follows:

Amount Rs.000

Particulars	(Amount in 000)
	2025-26	2024-25
Total Revenue	(89,643.05)	87,010.93
Total Expenses	15,154.11	12,742.40
Profit Before Tax & Provision	(1,04,797.15)	74,268.53
Less: Current Tax/ Deferred Tax	(14,755.90)	10,897.34
Profit After Tax available for appropriation	(90,041.26)	63,371.19
Basic Earnings Per Share	(4.72)	3.73
Diluted Earnings Per Share	(3.83)	3.55

DETAILS OF SIGNIFICANT KEY FINANCIAL RATIOS:

Details of ratios forms part of this Annual Report, pls refer Note 30 of the financial statements. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has suitable and adequate system of Internal Controls commensurate with its size and nature of operations primarily to ensure that

- The assets are safeguarded against loss from unauthorized use or disposition;

- The transactions are authorized, recorded and reported correctly and

- Code of conduct, Policies and applicable statutes are duly complied with.

The Company periodically reviews the adequacy and effectiveness of its internal control systems. The status of internal controls is reported to the Board and the Audit Committee for their review and appropriate action, wherever required.

ENVIRONMENT AND SAFETY

The Company recognises the importance of environmentally responsible and safe operations. The Company seeks to conduct its activities in compliance with applicable environmental, health and safety requirements and promotes responsible utilisation and conservation of natural resources, to the extent applicable to its operations.

RISK MANAGEMENT

The Company recognises that effective risk management is an integral part of its business operations. The Company has a risk management framework commensurate with the nature and scale of its activities.

The principal risks identified include project execution risk, regulatory and compliance risk, market risk, liquidity risk, interest rate risk, investment risk and operational risk.

The Companys investment and treasury activities, including transactions involving securities and derivatives, are subject to market volatility and associated risks and are undertaken with appropriate internal controls and approval mechanisms.

The Company periodically reviews its key business risks and takes appropriate measures to mitigate their potential impact. The Board of Directors oversees the Companys risk management framework and reviews significant risks and mitigation measures, as considered necessary.

HUMAN RESOURCES

Human resources remain an important element in achieving the Companys business objectives. The management continues to focus on employee development, appropriate training, workplace safety and maintaining healthy and cordial relations across all levels of the organisation.

The Company remains committed to maintaining a professional, ethical and performance- oriented work environment.

CAUTIONARY STATEMENT

Readers are cautioned that this Management Discussion and Analysis contains forward-looking statements that involve risks and uncertainties. Actual results, performance or achievements may differ materially from those expressed or implied in such statements due to various factors, including economic conditions, market developments, regulatory changes, business risks and other factors beyond the Companys control.

The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers are advised not to place undue reliance on such forward-looking statements.

	For and on behalf of the Board of Directors
		Balgopal Commercial Limited
	Sd/-	Sd/-
	Vijay Laltaprasad Yadav	Navaneet Lal Damani
	Managing Director	Director
	DIN: 02904370	DIN: 02904305
Place: Mumbai Date: 04.09.2026