Coral India Finance & Housing Ltd Management Discussions

Overall Business Environment and Economy

FY 2025-26 was marked by resilient domestic economic growth despite continued geopolitical uncertainties, inflationary pressures in certain global markets and evolving international trade dynamics. The Indian economy continued to demonstrate strong fundamentals, supported by robust domestic consumption, sustained Government expenditure on infrastructure, stable financial markets and healthy corporate performance.

The commercial real estate sector witnessed steady demand for quality office spaces in key urban markets, while the Indian capital markets remained buoyant with strong participation from domestic institutional and retail investors. These factors provided a favourable operating environment for the Companys business activities.

Against this backdrop, the Company continued to adopt a prudent and disciplined approach in managing its operations across both reportable business segments, namely Construction and Investments. The Company remained focused on preserving capital, maintaining adequate liquidity, generating sustainable returns and ensuring compliance with all applicable statutory and regulatory requirements.

Outlook

The Company remains cautiously optimistic about its prospects for FY 2025-26.

The rental business is expected to continue providing stable and predictable cash flows through existing lease arrangements and contractual rental escalations. The Company will continue to maintain its properties efficiently to ensure high occupancy levels and long-term value creation.

The Investment segment is expected to continue contributing steadily to the Companys performance through a diversified portfolio comprising equity shares, mutual funds and other financial instruments. The management will continue to adopt a balanced investment approach, focusing on capital preservation, liquidity and sustainable returns while responding prudently to changing market conditions.

Business Segment Review

Industry Structure and Developments & Companys Performance

The Company operates through two reportable business segments, namely Construction and Investments. During the year under review, the Company continued to manage its business operations with a balanced and conservative approach, focusing on long-term value creation, prudent

deployment of capital, effective risk management. The Management of the Company remained focused on creating long-term value for its stakeholders through prudent financial management and efficient utilization of resources.

Construction Segment

The Company did not undertake any construction activity or sale of property during the financial year 2025-26 and, accordingly, no revenue was generated from construction operations during the year as compared to ^256.04 Lakhs in the previous financial year.

Rental income generated from the Companys investment properties amounted to ^954.52 Lakhs during the year as against ^902.31 Lakhs in the previous financial year, registering a growth of 5.79%. Such rental income is disclosed under the Investment segment, as the underlying properties are classified as investment properties.

The Company continues to maintain its commercial properties to a high standard, ensuring optimum occupancy, timely realization of lease rentals and longterm value creation. The strategically located properties continue to attract quality tenants and provide a stable and predictable source of recurring income and cash flows.

Investment Segment

The Investment segment continued to be the principal contributor to the Companys revenue during the financial year 2025-26. The segment comprises rental income from investment properties and income generated from investments in equity shares, mutual funds and other financial instruments.

Income from financial investments (excluding rental income) stood at ^1,093.90 Lakhs during FY 2025-26 as against ^1,438.70 Lakhs in the previous financial year, reflecting a decline of 23.97%. The decrease was primarily attributable to fluctuations in market-linked investment income and the timing of realization of investment gains during the year.

The Company continues to follow a prudent investment strategy focused on capital preservation, liquidity management and long-term value creation. Its diversified investment portfolio, coupled with a debt-free balance sheet and strong liquidity position, enables the Company to effectively manage market volatility while pursuing sustainable returns.

This segment primarily includes - Investments in listed equity shares, mutual funds, and liquid funds.

Short-term and long-term lending to known proprietors

and companies, within thresholds that do not require NBFC registration.

The Company continues to follow a disciplined investment approach, focusing on liquidity, capital preservation, and yield optimization. Further, the lending operations are backed by due diligence and proper documentation, with focus on short-term secured exposures.

Opportunities, Threats, Risks and Concerns (OTRC)

The Companys performance is influenced by macroeconomic conditions, financial market movements and changes in the regulatory environment. The management continuously monitors these factors and adopts appropriate measures to manage risks while capitalizing on growth opportunities.

Opportunities

- Strong liquidity position and debt-free balance sheet.

- Stable rental income from commercial properties.

- Diversified investment portfolio providing long-term growth opportunities.

- Financial flexibility to capitalize on attractive investment opportunities.

Risks, Threats and Concerns

- Volatility in domestic and global financial markets.

- Changes in Government policies, taxation and regulatory framework.

- Inflationary pressures, interest rate fluctuations and economic slowdown.

- Geopolitical developments affecting investor sentiment and overall market conditions.

Internal control systems and their adequacy:

The Company has an adequate internal control system commensurate with the size, nature and complexity of its business operations. The internal control framework is designed to ensure efficient conduct of business, safeguarding of assets, compliance with applicable laws and regulations, accuracy of financial reporting and timely identification and mitigation of business risks.

The internal audit function periodically reviews the effectiveness of internal controls, and its observations are placed before the Audit Committee for review. Appropriate corrective actions are implemented wherever necessary, and the Company continues to strengthen its governance framework and internal control systems in line with evolving regulatory requirements and best governance practices.

Discussion on financial performance with respect to operational performance:

(t in Lakhs except EPS)

Particulars	STANDALONE	YoY growth
	2025-26	2024-25	(%)
Revenue from Operations including Other Income	2048.42	2597.06	(21.13)
Profit before Interest, Depreciation and Taxes	1730.80	2126.03	(18.59)
Less:
a. Finance Cost	1.17	0.02	5,750
b. Depreciation	6.28	7.38	(14.91)
c. Provision for Taxation (including Deferred Tax)	244.73	369.62	(33.79)
Net Profit for the Year (I)	1478.62	1749.01	(15.46)
Total Comprehensive Income/Loss (II)	(2682.70)	2141.71
Balance Profits for the earlier years	16164.33	14576.53	10.89
Less: Dividend paid on Equity Shares	(161.21)	(161.21)
Balance carried forward	17481.74	16164.33
Earnings Per Share (EPS) (Face Value of t 2/- each)	3.67	4.34	(15.44)

Note: Previous years figures have been regrouped / reclassified wherever necessary in conformity with Indian Accounting Standards (Ind AS) to correspond with the current years classification / disclosure and may not be comparable with the figures reported earlier.

Companys Performance Over view

During the financial year 2025-26:

- During the financial year 2025-26, there is a reduction in the total income to ^ 2048.42 Lakhs as against ^ 2597.06 Lakhs in the previous year - a decline of 21.13 %.

- Employee cost as a percentage to revenue from

operations increased to 6.02% 93.80 Lakhs) as

against 4.45% (^ 94.12 Lakhs) in the previous year, an increase of 35.28%.

- Other expense as a percentage to revenue from operations increased to 14.54% (^ 223.82 Lakhs) as against 14.32% (^ 303.06 Lakhs) in the previous year, an increase of 1.54%.

- Total Profit after tax for the current year has been decreased to ^ 1478.62 Lakhs against ^ 1749.01 Lakhs in the previous financial year - a decline of 15.46 %.

- Total Earning per share for the current year has been decreased to ^ 3.67 against ^ 4.34 in the previous financial year - a decline of 15.44%.

Material developments in Human Resources / Industrial:

The Company recognizes its employees as one of its most valuable assets and key contributors to its sustained growth and success. It remains committed to fostering a positive, inclusive and performance-driven work environment that encourages continuous learning, professional development and employee engagement.

The Company regularly undertakes initiatives aimed at enhancing employees skills and competencies through training and development programmes, enabling them to effectively adapt to the evolving business and regulatory environment. Industrial relations remained cordial throughout the year, and there were no significant human resource or industrial relations issues affecting the operations of the Company.

Cautionary Statement

Statements on the Management Discussion and Analysis and current years outlook are Managements perception at the time of drawing this report. Actual results may be materially different from those expressed in the statement. Important factors that could influence the Companys operations include demand and supply conditions, availability of inputs and their prices both domestic and global, changes in Government regulations, tax laws, economic developments within the country and other factors such as litigation and industrial relations.

Ratios where there has been significant change (i.e. change of 25% or more as compared to the immediately previous financial year) from FY 2025- 26 to FY 2024- 25:

Inventory Turnover Ratio (in times)

2025-26	-
2024-25	11.41
Reduction:	(100)%

Reason: There has been no movement in the Inventory during the current year.

Current Ratio
2025-26	45.49
2024-25	34.14
Improvement:	33.27%

Reason: Increase in cash and cash equivalent along with decrease in current financial liabilities and tax.

Operating Profit Margin
2025-26	107.21
2024-25	77.89
Reduction:	37.65

Reason: Although the operating profit ratio has increased, it may not indicate an improvement in overall performance because both operating profit and revenue have decreased. The ratio increased because revenue decreased at a faster rate than operating profit.

Net Capital Turnover Ratio
2025-26	0.11
2024-25	0.16
Reduction:	(33.71)%

Reason: Decline in sales and additional capital investment without corresponding rise in revenue.

Interest Coverage Ratio
2025-26	1473.30
2024-25	1,14,831.82
Variance:	(98.72)%

Reason: Due to interest on Overdraft facility.