BEML Land Assets Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS

Industry Structure

The real estate sector stands as a vital pillar of the global economy, encompassing a broad spectrum of activities involving property development, transactions, management, and financing. Core stakeholders such as development companies, real estate agencies, property management firms, REITs, construction companies, and mortgage lenders each play a critical role in driving the sectors growth and resilience.

Recent advancements underscore the industrys dynamic evolution, with key trends emerging in the form of technology integration, sustainable construction, co-living models, affordable housing, urban renewal, and ESG-centric investing. These developments reflect the sectors responsiveness to changing consumer demands, environmental considerations, and technological progress.

In the Indian context, the domestic real estate sector is a significant contributor to the economy. Since FY 2011-12, it has consistently contributed approximately 11% to the Gross Value Added (GVA) and is closely intertwined with nearly 50% of Indias GDP through its linkages with allied industries such as steel, cement, power, and infrastructure. The sector is not only crucial for supporting urbanization and infrastructure expansion but also in capitalizing on Indias demographic dividend. It remains a substantial source of government revenues and a catalyst for socio-economic progress.

While the sector grapples with challenges such as regulatory complexities, liquidity pressures, and market fluctuations, it offers tremendous scope for growth—particularly in affordable housing, technological innovation, and sustainable urban development. As India continues its economic ascent, real estate remains pivotal to employment generation, infrastructure enhancement, and nationwide development.

Companys Insight

Government of India has proposed for disinvestment of 26% of its shareholding in the equity share capital of BEML Limited, which involves undertaking and implementing the Demerger of identified surplus/ non-core assets of the BEML Limited. For demerger, transfer and vesting of identified surplus/ non-core assets, BEML Land Assets Limited (BLAL) was incorporated on 15.07.2021.

On 28.07.2022, MCA had passed order approving the Scheme of Arrangement for demerger of "BEML Land Assets Limited" (Resulting Company). In terms of Scheme of Arrangement, the identified surplus and non-core assets of BEML had been transferred at its book value to BEML Land Assets Limited on the appointed day of demerger that is on 25.08.2022.

In compliance with MCA order, BEML Limited had fixed 09.09.2022 as record date for issuing shares of Resulting Company in the ratio of 1:1 and same were issued to all shareholders whose name were recorded in the Register of Members of BEML on the above said date. Further, the said shares were listed on both stock exchanges (BSE & NSE) and trading therein has started on 19.04.2023.

The President of India, through the Department of Defence Production, Ministry of Defence, currently holds a 54.03% equity stake in BLAL. The Company has been classified as a Schedule C CPSE as of 22.01.2024, in accordance with Department of Public Enterprises guidelines for categorizing CPSEs created for asset management postdisinvestment.

Companys properties are located in 12 Cities and 10 States across India. The title for transfer of the said properties are in progress. Central Government has amended section 8G of the Indian Stamp Act, 1899 granting exemption on payment of stamp duty for transfer of title deeds from one Government company to another Government company in the demerger process. Pursuant to the above, all State Governments have granted exemption from stamp duty except Government of Karnataka, which is under process. Notably, the title registration for properties in Bhopal, Madhya Pradesh and Delhi have been completed successfully on 21.03.2025 and 08.04.2025 respectively.

? Bhopal, Chittod Apartments (7 Flats- 7,017 sq.ft. Built up area), Madhya Pradesh - Registration completed on 21.03.2025.

? New Delhi, Greater Kailash (Guest House) (3,173 sq.ft. Land Area & 5,300 sq.ft. Built up Area) - Registration completed on 08.04.2025.

? Chennai, Supriya Apartments (2000 Sq. Ft. built up area) -Registration completed on 21.05.2025

? Panjim Goa, Victor Building, Fontainhas, (3 Flats & Two shops 24/5 & 24/5- 3360 Sq. ft built up area)-Registration completed on 31.12.2025

? Kochi Kerela (Land & Building) 6970 sq. ft. (Land area) 3918 sq. ft.(Built up area) Registration completed on 28th April, 2026.

OPPORTUNITIES & CHALLENGES Opportunities

Indias policy ecosystem continues to nurture the growth of the real estate sector. Government-led initiatives such as:

? Housing for All

? Smart Cities Mission

? Make in India

? Start-up India

? Relaxed FDI Norms

? Ease of Doing Business

Key opportunities for BLALs land portfolio include:

1. Rising Urban Housing Demand, especially in tier-l and tier-ll cities.

2. Land Consolidation amid growing scarcity of vacant land in urban centers.

3. Infrastructure-Linked Development through strategic government and private sector partnerships.

Real estate is a leading employment generator, offering a wide array of job opportunities across skill levels—from construction workers and civil engineers to urban planners, architects, and project managers.

Revenue from real estate development remains a significant fiscal contributor, supporting both central and state government initiatives while enhancing urban infrastructure and quality of life.

RISKS AND CONCERNS

While the outlook remains positive, several sectoral risks and operational challenges must be addressed:

? Title Registration:

Although BLAL legally owns the land parcels post-demerger, titles are still recorded under BEML in certain jurisdictions. The Company is actively pursuing title transfers through registrars, sub-registrars, and land records authorities in respective states. This process may require additional legal compliance and documentation.

? Land Use Conversion

Some assets currently fall under industrial or mixed-use zoning. To optimize development potential, BLAL may need to obtain approvals for change of land use (CLU) from local and state regulatory bodies.

? Funding Constraints

The real estate lending environment remains bifurcated. While top-tier developers continue to access capital, others face difficulty amid tighter monetary policies and risk-averse lending. With the Reserve Bank of India potentially moving toward monetary tightening to manage inflation, the real estate sector may experience short-term liquidity constraints, rising cost of funds, and margin pressure due to ongoing input cost inflation.

OUTLOOK

The Indian real estate sector is poised for steady growth. Rapid urbanization, rising disposable incomes, and favorable demographics will continue to support demand in both residential and commercial segments. Key trends shaping the sectors future include:

? Smart Cities and Integrated Townships

? Digital Transformation in Real Estate Services

? Green Buildings and Sustainable Design

? Growth in Co-living and Shared Spaces

Real estate continues to be one of the most trusted investment avenues for Indian households, valued for its potential to deliver capital appreciation, rental income, and financial security.

As India advances toward becoming a $5 trillion economy, the real estate sector will remain central to achieving this vision. With strong governance, policy stability, and a focus on sustainable urban development, BLAL is well-positioned to unlock the potential of its land assets and contribute meaningfully to Indias economic and social development journey.

SEGMENT-WISE PERFORMANCE

The Company does not have any other segment.

FINANCIAL PERFORMANCE

The discussion on financial performance is as below:

Particulars	2025-26	2024-25
Revenue from Operations	98	-
Value of Production	-	-
Profit before Depreciation, Interest and Tax	(205)	(291)
Finance costs	109	77
Depreciation and amortization expense	9	8
Profit Before Tax	(323)	(375)
Tax Expense	324	-
Other Comprehensive Income	-	-
Total Comprehensive Income	1	(375)
Net worth	112	111

There was no change in the nature of business of the Company during the year. Further, there was no material change/commitment occurred affecting the financial position of the Company subsequent to the financial year ended 31.03.2026 till the date of this report.

INTERNAL CONTROL SYSTEMS ANDTHEIR ADEQUACY

BLAL has in place adequate internal financial controls with reference to financial reporting in compliance with the provisions of Section 134(5)(e) of the Companies Act, 2013 and such internal financial controls were operating effectively during the year. The Statutory Auditors submit a report on internal financial controls over financial reporting along with their Audit Report on the financial statements every year.

HUMAN RESOURCE DEVELOPMENT

As on 31.03.2026, the Company has Three (3) employees. Out of three employees, one employee is posted on deputation basis and two employees on contract basis.

Statements made in the Management Discussion & Analysis Report describing the Companys objective, projections, estimates and expectations may be forward looking statements within the meaning of applicable laws and regulations. Such statements reflect the Companys current views with respect to the future events and are subject to risks and uncertainties. Actual results may differ from such expectations, projections and so on whether express or implied. The Company does not undertake any obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

	For and on behalf of the Board of Directors
Place: Bengaluru	Sd/-
	SHANTANU ROY
Date: 18-05-2026	Chairman & Managing Director