B&B Realty Ltd Management Discussions

The Indian economy remained resilient during FY 2025-26, supported by strong domestic demand, public capital expenditure, infrastructure development and improving investment activity. The Reserve Bank of India revised its real GDP growth projection for FY 2025-26 to 7.3%, reflecting the continued strength of the Indian economy.

Indias medium- to long-term growth prospects remain positive, supported by rapid urbanisation, favorable demographics, rising disposable incomes and an expanding middle-class population. These factors are expected to sustain demand for housing and infrastructure and provide a supportive environment for the real estate sector.

The Indian real estate sector continued its growth momentum during FY 2025-26, driven primarily by sustained residential demand and improving activity in commercial and mixed-use developments. Demand for quality housing, particularly in urban and metropolitan areas, remained encouraging.

Regulatory reforms, increased transparency under RERA, improved access to financing, infrastructure development and greater institutional participation have contributed to the formalisation and strengthening of the sector. Improved connectivity and urban development are also creating opportunities in emerging markets.

The regulatory environment also continued to evolve. SEBI notified amendments to the SEBI (Real Estate Investment Trusts) Regulations, 2014 during FY 2025-26, further developing the framework for institutional participation in real estate assets.

The Companys business model is primarily focused on strategic investments in Special Purpose Vehicles (SPVs)/Joint Ventures, acquisition and holding of land parcels and participation in land development opportunities, rather than undertaking construction activities directly on a large scale.

The Companys business model provides opportunities arising from the long-term appreciation and development potential of strategically located land assets and participation in real estate projects through SPVs/JVs.

Rapid urbanisation, infrastructure development, improved connectivity and increasing demand for residential and commercial real estate continue to create opportunities for land aggregation and development. Infrastructure expansion around metropolitan cities is also opening up new development corridors.

The Companys existing land bank and investments in SPVs provide opportunities for future development, strategic monetisation and value creation, subject to applicable approvals, market conditions and commercial feasibility.

The Company will continue to evaluate suitable land acquisition, investment and strategic partnership opportunities, with emphasis on location, title quality, development potential, regulatory feasibility, expected returns and prudent capital deployment.

The real estate sector remains exposed to various external and industry-specific challenges, including:

• Regulatory and approval risks, including delays in land-use conversion, development permissions and other statutory approvals;

• Market risk arising from fluctuations in property prices and demand;

• Liquidity and funding risk associated with acquisition and holding of land assets and investments;

• SPV/JV risks, including dependence on the financial performance, management and execution capabilities of investee entities;

• Changes in government policies, taxation, zoning and land-use regulations;

• Escalation in the cost of land and other development-related inputs; and

• General economic and interest-rate risks affecting the real estate sector.

The outlook for the Indian real estate sector remains positive, supported by continued urbanisation, infrastructure development, favorable demographics, rising household incomes and sustained demand for quality real estate.

For the Company, the long-term outlook is linked to the potential of its land assets and investments in SPVs/JVs. The Company intends to focus on unlocking value from its existing assets and investments while selectively evaluating new opportunities.

The Company will continue to adopt a cautious and disciplined approach towards capital deployment, land acquisition and investments in SPVs/JVs, with emphasis on risk-adjusted returns, asset quality and long-term value creation.

During FY 2025-26, the Company continued to focus on its core activities comprising investments in SPVs/JVs and land-related activities. The financial performance of the Company is influenced by the timing and nature of transactions and monetization of its assets.

The Company recorded a loss before and after tax of Rs.44.25 Lakhs during FY 2025-26, as compared to a profit of Rs.46.43 Lakhs in the previous year. The basic and diluted EPS stood at ( Rs.0.30) per equity share as against Rs.0.31 in the previous year.

The loss reported during the current year, as compared to the previous year is primarily attributable to income received by its SPVs but not recognised in accordance with the applicable Accounting Standards. The said income is expected to be recognised in FY 2026-27, which is expected to have a corresponding positive impact on the financial performance

However, The Company continues to hold a sizable land bank of approximately 30 acres in and around North Bangalore, strategically located near the airport and other prime areas of Bengaluru.

This land bank provides a strong foundation for the Companys long-term growth plans, with development activities proposed in the near future.

The Company continues to maintain its focus on prudent financial management, efficient deployment of capital and optimization of its land assets and investments in SPVs/JVs. The Management remains focused on identifying appropriate opportunities for development and monetization of its assets and investments with a view to improving the Companys financial performance and creating long-term value for its stakeholders.

This Management Discussion and Analysis (MD&A) report may contain forward-looking statements regarding the Companys objectives, strategies, expectations, estimates, projections, and future outlook. These statements are based on certain assumptions and anticipated future events that are beyond the Companys control.

Actual results, performance, or achievements may differ significantly from those expressed or implied in such statements due to various risks, uncertainties, and external factors. The Company assumes no responsibility to update or revise any forward-looking statements, whether arising from new information, future developments, or otherwise, except as required under applicable laws and regulations.