Cella Space Ltd Management Discussions

The Management Discussion and Analysis for the financial year under review as stipulated under Regulation 34(2)(e) read with Part B of Schedule V of the SEBI Listing Regulations forms part of this Integrated Annual Report. It provides mandatory disclosures required under the Listing Regulations comprising of inter-alia details about the overall industry structure economic scenarios operational and financial performance of the Company, business strategy, internal controls and their adequacy risk and concerns and other material developments during the financial year 2025-26.

Indias industrial and warehousing sector has continued its strong growth trajectory in 2026, supported by sustained demand from third-party logistics (3PL), e-commerce, manufacturing, automobile, and retail occupiers. The sector remains one of the strongest-performing segments within Indias commercial real estate market, driven by supply chain modernization, infrastructure investments, and the rapid expansion of distribution networks.

During the first quarter of 2026, industrial and warehousing leasing across the top eight cities reached approximately 11 million sq. ft., reflecting a 22% year-on-year increase. Third-party logistics (3PL) companies remained the largest occupier group, accounting for nearly one-third of total leasing activity, while e-commerce and automobile companies also recorded significant space absorption. Delhi-NCR continued to lead leasing demand, followed by Chennai, with Hyderabad and Bengaluru witnessing particularly strong growth in Grade-A space uptake.

The continued dominance of 3PL and e-commerce occupiers highlights the transformation of Indias logistics ecosystem. Growing consumer expectations for faster deliveries, the expansion of quick-commerce platforms, and increasing investment in supply chain efficiency are driving demand for strategically located, technology-enabled warehousing facilities. Major occupiers are increasingly seeking modern Grade-A assets equipped with automation, digital tracking systems, sustainability features, and scalable infrastructure.

Demand is also expanding beyond traditional metropolitan markets into emerging logistics and industrial corridors. Government initiatives supporting manufacturing, logistics infrastructure, multimodal connectivity, and industrial corridor development continue to strengthen the long-term fundamentals of the sector. Institutional investors and developers remain confident in the market, focusing on high-quality assets that can meet evolving occupier requirements.

Looking ahead, 3PL, e-commerce, manufacturing, retail, and automobile sectors are expected to remain the primary drivers of warehousing demand throughout 2026. As companies continue to optimize supply chains, shorten delivery timelines, and strengthen inventory management capabilities, demand for premium, sustainable, and technology-enabled industrial and warehousing facilities is expected to remain robust. Despite global supply chain challenges, Indias industrial and logistics sector continues to demonstrate resilience and strong long-term growth potential.

Our company is fully equipped with the expertise, resources, infrastructure, and operational capabilities required to capitalize on these emerging opportunities and deliver best-in-class solutions across the industrial and warehousing sector. With a strong commitment to quality, innovation, sustainability, and customer satisfaction, we are well-positioned to support the evolving needs of occupiers, investors, and supply chain stakeholders throughout 2026 and beyond.

Your Company has got an internal audit system which thoroughly verifies various transactions and contracts entered into by the company. Your company also holds periodical performance review meeting wherein various parameters and budgetary norms fixed are compared with actual, reasons ascertained deviations if any and corrective actions taken then and there.

Your company during the year under review has very peaceful and cordial relationship with the employees. there was no instance of labour unrest.

The company has a total of 10 employees. Other mandatory disclosures like details of significant changes in key financial ratios along with detailed explanation is given in page no.121 of the Annual Report as additional disclosures to the standalone financial statements.