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 2024-25.

Leasing of industrial and warehousing spaces rose 63 per cent in the first six months of this calendar year 2025 to record 27.1 million square feet across eight major cities on better demand from e-commerce players. The third-party logistics (3PL) players took 32 per cent of the total spaces leased during January-June, 2025 this year while e-commerce entities share surged to 25 per cent.

The dominance of 3PL and e-commerce, which together drove over half of H1 demand, underscores how rapidly evolving consumer expectations and supply chain optimisation are reshaping the landscape.

The next wave of growth would be defined by premium, sustainable, and tech-enabled facilities. The robust growth in leasing activity, coupled with sustained institutional investments in quality assets, reflects the confidence of both occupiers and developers in Indias industrial and logistics sector.

The demand for industrial and warehousing spaces is rising in tier-II cities. Among the eight major cities, Delhi-NCR saw the maximum leasing of industrial & warehousing spaces at 7.3 million square feet, followed by Bengaluru 4 million square feet, Hyderabad at 3.6 million square feet, Kolkata 3.3 million square feet, Mumbai 2.9 million sq ft, Chennai 2.3 million sq ft, Pune 2.2 million sq ft and Ahmedabad 1.4 million sq ft.

Between January and June 2025, the supply of industrial & warehousing spaces stood at 16.7 million sq ft. Bengaluru, Chennai, and Mumbai accounted for 57 per cent of the total supply during this period.

With strong showing in the first half of 2025, it is hoped that the demand would remain robust in the second half.

"3PL, e-commerce, and retail sectors are likely to be the primary drivers of this space take-up as they aggressively pursue shorter delivery timelines and re-evaluate their supply chain models. Your company is fully equipped with all required resources to operate and excel in the industrial & warehousing spaces arena.

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 11 employees. Other mandatory disclosures like details of significant changes in key financial ratios along with detailed explanation is given in page no.110 of the Annual Report as additional disclosures to the standalone financial statements.