Country Condos Ltd Management Discussions

OVERVIEW:

The Real Estate Sector is one of the most globally recognized sectors. Its impact on the overall economy has been deepening over the past few years, mainly because of the rising population on the demand side and enhanced government initiatives as an enabler. The growth of this sector is well complemented by the growth of the corporate environment and the demand for office space as well as urban and semi-urban accommodations. The construction industry ranks third among 14 major sectors in terms of direct, indirect and induced effects in all sectors of the economy.

The Indian economy continued to exhibit steady growth and remained among the fastest growing emerging economies, with a focus on the continued implementation of structural and financial sector reforms and efforts to reduce public debt.

In India, real estate is the second largest employer after agriculture and is slated to grow at 30 percent over the next decade. It is also expected that this sector will incur more non-resident Indian (NRI) investments in both the short term and the long term. Bengaluru is expected to be the most favored property investment destination for NRIs, followed by Ahmedabad, Pune, Hyderabad, Chennai, Goa, Mumbai, Delhi, Lucknow, Jaipur, Surat, Indore, Varanasi, Kolkata, Visakhapatnam and Dehradun.

ECONOMIC OVERVIEW:

GLOBAL ECONOMY:

World economic outlook reports are slowing global growth and renewed inflationary pressures. Policies need to be agile, carefully manage the trade-offs involved in ramping up defense spending, and lay the foundation for a sustained recovery.

Global growth is projected at 3.3% for 2026 and 3.2% for 2027, facing a slowdown driven by geopolitical instability, particularly in the Middle East, and high energy prices. While inflation is expected to gradually decline, persistent risks include conflict escalation, fragmented trade, and high debt servicing costs, with India and emerging economies providing relative growth resilience.

Technology investment, fiscal and monetary support, accommodative financial conditions, and private sector adaptability offset trade policy shifts. Global inflation is expected to fall, but US inflation will return to target more gradually.

Key downside risks are re-evaluation of technology expectations and escalation of geopolitical tensions. Policymakers should restore fiscal buffers, preserve price and financial stability, reduce uncertainty, and implement structural reforms

The global economy in CY 2025 saw a year defined by the recalibration of trade relationships, persistent geopolitical uncertainty, and a gradual normalisation of monetary policy. World output is estimated to have expanded at around 3.4%, broadly in line with CY 2024 stabilisation efforts, but the underlying texture of growth was distinctly uneven. Economic activity remained resilient, supported by easing inflation, gradual normalisation of monetary policy, steady domestic demand across several large economies, and sustained investment in technology, particularly in Artificial Intelligence (AI) and digital infrastructure. These structural factors helped offset persistent challenges arising from trade fragmentation, elevated tariffs, and ongoing geopolitical uncertainty.

Global growth is expected to remain at 3.1% in CY 2026, below the IMFs pre-pandemic long-term average of 3.7%, declining from last year amidst prolonged geopolitical tensions and trade-related uncertainties. AI-related investments and still accommodative financial conditions are supporting economic activity, even as bouts of heightened asset price volatility reflect shifting market sentiment. Recent energy price increases due to the West Asia conflict have heightened upside inflation risks and clouded the global growth outlook.

The outlook is highly contingent on the evolving situation in West Asia: an early resolution would likely limit the damage, whereas further escalation and a protracted conflict could have a more severe impact on the global economy. At the same time, the ongoing trade and policy uncertainty is reinforcing concerns about the outlook.

Advanced economies are forecast to grow by 1.8% during the year, marginally less than last year, while Emerging Markets and Developing Economies (EMDEs) are expected to grow at 3.9% over the same period, 50 bps lower than last year. The strengthening of the US dollar after the outbreak of the West Asia conflict on safe-haven demand has had a direct impact on emerging economies. Global headline inflation, after moderating steadily in recent years, is projected to tick up to 4.4% in CY 2026, reflecting the impact of the Middle East conflict, which has pushed up energy commodity prices and disrupted global supply chains. However, assuming the conflict remains limited in duration and scope, inflation is expected to resume its downward trajectory in CY 2027, easing to 3.7%, led by the expectation that energy prices will normalise as hostilities subside and the lagged effects of prior monetary policy tightening continue to anchor inflation expectations

Rising geopolitical tensions, particularly in Eastern Europe and the Middle East, added further uncertainty, disrupting global trade, investment flows, and financial markets. These factors continued to cast a shadow over business confidence and long-term investment decisions. The growth rate of these economies, which stood at 1.7% in CY 2024, is anticipated to remain sluggish over the next two years due to policy tightening, financial sector turmoil, high inflation, the ongoing conflict between Russia & Ukraine and Israel & Gaza and America & Iran.

Inflation rates are declining more rapidly than anticipated across most regions, supported by tight monetary policies. Combined with a modest uptick in economic activity, this sets the stage for a softer-than-expected economic slowdown.

The risks to global economic growth are balanced, with potential upside from quicker disinflation, slower withdrawal of fiscal support measures, robust economic expansion in China, and advancements in supply-side reforms. Conversely, downside risks include spikes in commodity prices due to geopolitical or weather-related disruptions, ongoing core inflation necessitating tighter monetary policies, potential slowdowns in Chinese growth, and potential disruptions from abrupt fiscal consolidations.

INDIAN ECONOMY:

Indias economic outlook for 2026 remains strong, with projections positioning it as the worlds fastest-growing major economy, driven by robust domestic demand, infrastructure investment, and financial sector stability. GDP growth for FY

2025 - 26 is estimated between 7.4% - 7.8%, with a projected moderation to 6.4% - 7.2% for FY 2026 - 27, backed by strong rural and urban consumption.

Indias economic fundamentals enter FY 2026-27 in a position of notable strength. The RBI projects Indias GDP growth for FY 2026-27 at 6.6%. Indias domestic growth is on an upward trajectory owing to multiple factors such as robust domestic demand, income tax and goods and services tax (GST) rationalization, front-loading of government capital expenditure (CAPEX), along with facilitative monetary and financial conditions and benign inflation. The IMF, in its April

2026 World Economic Outlook, has affirmed Indias status as the worlds fastest-growing major economy for the near future. However, risks remain due to uncertainties from the ongoing West Asia conflict, potential supply disruptions and global financial volatility.

The Gross Domestic Product (GDP) growth was underpinned by robust performance in services, manufacturing recovery, and sustained public capital expenditure. Government initiatives focusing on infrastructure development, urbanization, and digital transformation continued to create a conducive environment for long-term economic expansion. Additionally, policy measures such as Production-Linked Incentive (PLI) schemes and ease-of doing- business reforms further strengthened investor confidence.

Volatility in global crude oil prices remained a key macroeconomic factor influencing the Indian economy during the year. Elevated and fluctuating oil prices impacted import costs, inflation levels, transportation expenses, and overall input costs across industries, given Indias dependence on energy imports. Higher crude prices also exerted pressure on the trade deficit and currency movement, while affecting consumer spending and corporate profitability in energy intensive sectors. The weakening of the Indian Rupee during the year, while supporting export competitiveness and improved realizations for export-oriented sectors, also increased the cost of imports, particularly crude oil, raw materials, and capital goods, thereby exerting pressure on inflation and input costs. The RBI projects CPI (Consumer Price Index) inflation to average 5.1% for FY 2026-27. The currency movement contributed to volatility in financial markets and influenced interest rate expectations and corporate margins across sectors dependent on imported inputs. Despite these challenges, Indias strong domestic demand, resilient foreign exchange reserves, and continued policy support helped maintain overall macroeconomic stability.

Climate risks continued to pose challenges to economic activity during the year. Irregular rainfall patterns, heatwaves, floods, cyclones, and other extreme weather conditions impacted agricultural output, supply chains, logistics, and energy demand across regions. Such events also contributed to volatility in commodity prices and inflationary pressures, while increasing operational and infrastructure risks for businesses. The growing frequency and intensity of climate related disruptions underscore the importance of resilience planning, sustainable resource management, and adaptive business strategies to mitigate long-term environmental and economic risks.

Inflation, while moderating compared to previous highs, remained a key area of focus, with monetary authorities maintaining a calibrated stance to balance growth and price stability. The banking sector stayed well-capitalized, ensuring adequate liquidity and credit flow to productive sectors, including real estate.

Amid global uncertainties, Indias economic fundamentals remain firmly anchored. Infrastructure expansion, robust real estate activity, and rapid digitalisation have continued to act as key growth multipliers across sectors. Strong agricultural output, rising household incomes, and government-backed initiatives in financial inclusion and affordable housing have provided further impetus to consumption.

Support will come from other areas. Household consumption is expected to improve as continued disinflation will prop up the purchasing power of consumers. Secondly, healthy rabi sowing and good kharif output assuming a normal monsoon will support agricultural income. Thirdly, prospects of fixed investment remain bright owing to an upturn in the private capex cycle, improved business sentiments, healthy balance sheets of corporates and banks as well as the governments continued thrust on capital expenditure. A sustained economic growth will lead India to become the 3 rd largest and an upper middle-income economy in years to come.

Despite of war in Iran and the staggering inflation, the Indian equity market had a comparatively stellar year. The governments focus on infrastructure development with initiatives like the National Infrastructure Pipeline and Atmanirbhar Bharat Abhiyan are expected to create opportunities. However, the effects of geo-political tension rising around the world pose a threat to the economic growth of the Country and clouds of uncertainty are still hovering around World economic growth.

Although the short-term outlook appears challenging due to rising interest rates, external supply shocks, and geopolitical tensions, we believe the government is taking appropriate measures to ensure a sustainable growth trajectory for the country. The union budget presented this year strongly supports the long-term growth of Indias real estate sector through its focus on urban infrastructure and the digital economy. The governments significantly expanded capital expenditure target for the year is expected to generate job opportunities and stimulate higher economic activity.

INDUSTRY CONTEXT:

THE INDIAN REAL ESTATE SECTOR

The real estate sector is one of the most globally recognized sectors. The real estate sector comprises four sub sectors - housing, retail, hospitality and commercial. The growth of this sector is well complemented by the growth of the corporate environment and the demand for office space as well as urban and semi-urban accommodations. The construction industry ranks third among the 14 major sectors in terms of direct, indirect and induced effects in all sectors of the economy.

The Indian Real Estate Sector has entered a phase of sustained structural growth, underpinned by robust macro fundamentals, a supportive policy environment, and an aspirational, urbanizing population. The sector is valued at approximately US$ 650 billion in 2025 and is projected to reach US$ 1 trillion by 2030 and expand to US$ 5.8 trillion by 2047, with its contribution to GDP expected to grow from 7% to 15.5% by 2047.

The sectors deep linkages with over 200 allied industries - ranging from cement, steel, and logistics to consumer goods, ensure that real estate remains a critical employment generator and economic multiplier. Flagship government initiatives, including Smart Cities Mission, Housing for All, and RERA, continue to enhance transparency, strengthen investor confidence, and provide a stable regulatory foundation for long-term capital deployment across residential, commercial, And industrial real estate.

Flagship government initiatives

Government policy has been consistently supportive of the sector. Key measures shaping the operating environment include:

• National Real Estate Policy 2025: Introduced a unified single-window clearance system targeting a 40% reduction in project approval timelines, and incentivised green-certified developments with tax benefits and subsidies.

• Land digitisation: The governments drive towards 100% land record digitisation by December 2025 is reducing title risks and boosting institutional investor confidence. Institutional capital continues to flow in at record levels. Private equity inflows into Indian real estate rose 38% YoY to 20,566 crore in Q1 2025, with Q2 2025 alone contributing 13,710 crore, double the previous quarter. Indias REIT market surpassed a 1,00,000 crore market capitalisation milestone in November 2025, with projections of 25-30% penetration in the office segment by 2030.

Further other government initiatives such as the Smart Cities Mission, Housing for All, and the Real Estate (Regulation and Development) Act (RERA), have enhanced transparency, improved regulatory oversight and strengthened investor confidence across the real estate value chain.

The real estate sector, in particular, benefited from favourable structural trends such as rising urbanization, increasing disposable incomes, and evolving consumer preferences. Demand for residential properties remained strong, especially in mid-income and premium segments, supported by stable interest rates and renewed buyer confidence. Commercial real estate also witnessed gradual recovery, driven by demand for high-quality office spaces and growth in sectors such as IT, BFSI, and startups.

Looking ahead, the outlook for the Indian economy remains positive, supported by strong macroeconomic fundamentals, demographic advantages, and continued policy support. However, external risks such as global economic slowdown, commodity price volatility, and financial market uncertainties warrant cautious optimism.

Overall, the economic environment continues to provide a solid foundation for sustainable growth in the real estate sector, positioning it as a key contributor to Indias long-term development trajectory.

The improved sales momentum has lifted confidence among realty developers, pushing them to launch more projects as indicated by the rise in new offerings across markets.

This growth reflects not only the demand for housing and office spaces but also the sectors deep linkages with over 200 allied industries - from cement and steel to logistics, finance, and consumer goods. Sustained demand across residential, commercial, and industrial real estate, combined with the expansion of Indias corporate sector and a services-driven economy, is reinforcing the sectors long-term outlook.

As India advances towards inclusive and sustainable urban development, real estate will continue to serve as a critical enabler, shaping cities, creating jobs, and building physical and social infrastructure needed to support a rapidly evolving population.

Indias real estate sector is witnessing a healthy increase in demand in 2026 and this momentum is expected to hold for the rest of the year. From commercial spaces to the residential market, the overall market outlook is a bright one for the real estate industry.

Residential Real Estate Market

Indias residential real estate market delivered a resilient performance in CY 2025, with a total of 348,207 housing units sold across the eight major cities, reflecting a broadly stable performance and registering a marginal 1% dip YoY according to Knight Franks India Real Estate Q2 2025 report. New supplies, at 362,148 units launched across the eight major cities, grew marginally by 2.89% YoY and yet represented the second-highest annual launch volume since 2019.

Office Market

The Indian office market delivered an exceptional performance in CY 2025, scaling new highs despite global headwinds. Annual transaction volumes touched a record 86.4 million sq. ft., marking a 20% YoY increase, surpassing the previous record set in CY 2024, and underscoring the depth and durability of occupier demand across major Indian cities. Vacancy levels stood at 15.1% at the end of CY 2025, broadly stable YoY reflecting a sustained demand-supply balance even as new completions moderated. Bengaluru led all markets with 28.7 million sq. ft. of leasing in CY 2025, representing a remarkable 59% YoY increase and marking an all-time high for the city. NCR recorded the second-highest annual volume at 11.3 million sq. ft., followed by Hyderabad at 11.4 million sq. ft., Pune at 10.8 million sq. ft. and Chennai at 10.1 million sq. ft. Mumbai recorded 9.8 million sq. ft. of transactions during the year.

On the supply side, new office completions across the eight major markets totaled approximately 54.8 million sq. ft. for the full year, a 9% YoY increase. As has been the trend in recent years, completions continued to trail leasing activity, reinforcing a gradual tightening of the demand-supply balance across most markets.

The composition of demand witnessed a notable structural shift in CY 2025. GCCs emerged as the dominant occupier segment, accounting for 38% of total annual transactions - the highest share on record - as multinational corporations increasingly expanded their India operations to support complex, mission-critical functions. Bengaluru captured 47% of all GCC leasing activity nationally, reinforcing its credentials as the preferred global enterprise hub. Third-party IT services staged a strong comeback after a period of relative subdued activity, with the segment leasing approximately 17.1 million sq. ft., reflecting a sharp 117% YoY increase and accounting for 20% of total annual volumes. India-facing businesses, which had anchored demand in the immediate post-pandemic years, moderated their share to 21% in CY 2025 from 36% in the preceding year, reflecting a broader and more diversified occupier mix rather than any weakening of domestic demand. Flexible workspace operators also recorded their highest-ever annual absorption at 18.6 million sq. ft., an 18% YoY increase.

2026 Residential Outlook: Stable, Quality-Led Growth

Looking into 2026, Knight Frank expects the residential sector to remain stable rather than explosive. Premium and high- end housing is expected to continue attracting the greatest developer focus. A Reuters poll of property analysts conducted between February and March 2026 indicates that home prices in major urban centers are expected to continue rising, but at a more measured pace, with micro market dynamics increasingly determining performance. The RBIs repo rate cut to 5.25% provides a significant demand catalyst, particularly for first-time buyers and the premium segment.

2026 Outlook: Towards 100 Million Sq. Ft.

According to Knight Franks Asia-Pacific Outlook 2026, India heads into 2026 with one of the strongest office market outlooks in the region, with rentals in Bengaluru, Mumbai, and NCR projected to grow between 7.5% and 9% YoY JLLs Q1 2026 commentary signals that deal pipelines point towards the 100 million sq. ft. annual leasing milestone within the next two years, a transformational threshold that would mark Indias definitive arrival as the worlds premier office market destination.

UNION BUDGET 2026-27 TAKEAWAYS

The Union Budget 2026-27, presented on February 01, 2026, continued the governments capital expenditure-driven growth model, reinforcing infrastructure as the backbone of Indias economic and urban expansion. While the budget did not introduce direct demand-side incentives for housing, its sharp focus on infrastructure, urbanization, and institutional capital is expected to create strong indirect momentum across residential and commercial real estate segments, setting a constructive backdrop for long-term sector growth.

Record capital expenditure and infrastructure push public capital expenditure scaled up to 12.2 lakh crore from 11.2 lakh crore in FY 2025-26, reinforcing the governments commitment to infrastructure-led growth. With Metro Phase III and 7 new High-Speed Rail corridors fast-tracked, transit-proximate zones are expected to see significant value appreciation, while the focus on City Economic Regions (CERs) is designed to unlock new real estate growth corridors beyond traditional metro markets.

City Economic Regions — unlocking decentralized growth

One of the most significant announcements was the introduction of CERs - planned urban clusters designed Retrofitting and Asset Modernization to integrate residential, commercial, industrial, and civic infrastructure, with a focus on Tier-II and Tier-III cities and emerging urban centers. This is expected to broaden real estate demand beyond saturated metros and create new self-sustaining urban ecosystems for both developers and homebuyers.

CPSE asset recycling through REITs

The government announced the acceleration of recycling of significant real estate assets of Central Public Sector Enterprises (CPSEs) through the setting up of dedicated REITs. Market analysts believe this measure could deepen Indias real estate investment landscape, improve transparency and offer stable returns to investors, while freeing up public resources for new development projects.

Simplified transactions for homebuyers

Tax compliance was eased for resident buyers purchasing immovable property from non-residents, with the removal of the requirement to obtain a TAN, allowing TDS deposits through the buyers PAN, streamlining cross-border transactions and reducing administrative friction. This is expected to particularly benefit NRI participation in Indian real estate.

Continued affordable housing support

PMAY-Urban and PMAY-Urban 2.0 continued to progress with an allocation of over 18,600 crore, though the absence of revised affordable housing definitions or fresh interest subsidies was noted by the industry. The budgets long term infrastructure focus, however, is expected to gradually improve affordability in emerging urban corridors over the medium term.

Climate Change and Real Estate sector

A Rapidly Shifting Investment Paradigm Climate risk has moved from the periphery to the center of real estate investment decision-making in India. The Q1 2026 data from CBRE points to a decisive and accelerating shift: 83% of all GCC leasing in Q1 2026 was in green-certified tech parks, 79% of total office leasing occurred in green certified assets, and 78% of transactions were in buildings less than 10 years old. These figures are not incidental — they represent a structural recalibration of occupier priorities, with ESG alignment, energy efficiency, and employee well-being now functioning as baseline requirements rather than aspirational attributes.

CBRE India noted that in Q4 2025, green-certified assets represented 93% of newly completed office space and 75% of all leasing activity, an extraordinary concentration that reflects the extent to which sustainability has become the de facto standard for institutional-grade commercial real estate. For developers and landlords, this means that assets without meaningful ESG credentials face growing obsolescence risk and are increasingly likely to experience vacancy-led valuation compression.

The real estate sector in India, a key contributor to the countrys GDP and employment, is increasingly facing the multifaceted impacts of climate change. Rising temperatures, erratic monsoons, flooding, and extreme weather events are not only disrupting construction timelines and increasing operating costs but are also reshaping demand patterns for housing and commercial infrastructure. As climate change increasingly affects economies and this sector, there are both physical and transitional risks that could harm assets and the markets they are part of, either directly or indirectly. The impact of climate change on real estate portfolios can be chronic, reflecting long-term trends, or acute, indicating severe short-term occurrences, and vary by location or in response to efforts to shift towards a low-carbon economy.

The urgency for drastic measures is underscored by the observable effects of climate change, such as rising temperatures and sea levels, and increased frequency of extreme weather events. In addition, climate change exacerbates risks to occupational health and safety, with high temperatures already contributing to a 1.4% loss in working hours in 1995. Studies suggest that without addressing climate change, and with an expected temperature increase of 1.3°C by 2030, we could see a productivity loss of 2.2%, equating to 80 million full time jobs.

Climate change is also influencing regulatory and financial frameworks that govern the sector. With Indias commitment to achieve net-zero emissions by 2070, there is growing emphasis on incorporating climate resilience and sustainability into urban development policies. Real estate firms must urgently implement innovative strategies to adapt their buildings, operations, workforce, products, and services to these significant and impending changes.

Moreover, investor sentiment is shifting toward environmentally responsible developments. Institutional and retail investors are beginning to factor climate risk into asset valuation, leading to a potential decline in the premium of properties in high- risk zones and a surge in demand for buildings that meet environmental and social governance (ESG) criteria. Governments, policymakers, investors, and the general populace are shifting their views on climate change and are taking bold actions. The creation of tools that encourage eco- friendly building practices and the widespread acceptance of green building certifications are helping more areas to align their construction activities with the goals of the Paris Agreement. While the surge in investments is indeed encouraging, it also highlights the necessity of engaging with additional external partners to leverage technology effectively, ensuring seamless operations, accountability and transparency. As India progresses towards its net-zero goals, integrating climate considerations across all sectors will be crucial to building a resilient and sustainable economy.

IMPACT OF CLIMATE CHANGE ON REAL ESTATE SECTOR

Due to the nature of business, the real estate sector is a significant contributor to the GDP of India. It is also responsible for nearly one-fifth of the nations emissions, and 33% of total energy consumption. Considering Indias rigorous climate objectives, including the goal of Net-Zero by 2070, the Indian real estate sector is required to act quickly and effectively. As climate change increasingly affects economies and this sector, there are both physical and transitional risks that could harm assets and the markets they are part of, either directly or indirectly.

Real estate portfolios are exposed to various risks, including the impact of climate change, which can cause damage to properties through extreme weather events. These impacts can be chronic, reflecting long-term trends, or acute, indicating severe short-term occurrences, and vary by location or in response to efforts to shift towards a low-carbon economy. The urgency for drastic measures is underscored by the observable effects of climate change, such as escalating temperatures, rising sea levels, and increased frequency of extreme weather events. Additionally, environmental hazards adversely affect the ability to provide safe, healthy, and adequate working conditions, alongside job availability. Climate change exacerbates risks to occupational health and safety, with high temperatures already contributing to a 1.4% loss in working hours in 1995. Studies suggest that without addressing climate change, and with an expected temperature increase of 1.3°C by 2030, we could see a productivity loss of 2.2%, equating to 80 million full-time jobs. Recognizing their contribution to climate change, real estate firms must urgently implement innovative strategies to adapt their buildings, operations, workforce, products, and services to these significant and impending changes.

In recent years, theres been a noticeable uptick in worldwide investments aimed at diminishing the energy consumption of buildings. This move by the real estate sector towards minimizing its environmental footprint marks a positive trend. Governments, policymakers, investors, and the general populace are shifting their views on climate change and are taking bold actions to counteract its effects. The creation of tools that encourage eco-friendly building practices and the widespread acceptance of green building certifications are helping more areas to align their construction activities with the goals of the Paris Agreement.

OPPORTUNITIES AND CHALLENGES:

OPPORTUNITIES:

As India awaits policy reforms to pick up speed, your Company firmly believes that the demand for Real Estate in a country like India should remain strong in the medium to long term. Your Companys well accepted brand, contemporary architecture, well designed projects in strategic locations, strong balance sheet and stable financial performance even in testing times make it a preferred choice for customers and shareholders. Your Company is ideally placed to further strengthen its development potential by acquiring new land parcels.

Real estate sector in India is expected to reach US$ 1 trillion by 2030. By 2027, it will contribute 13 per cent to countrys GDP Emergence of nuclear families, rapid urbanization and rising household income are likely to remain the key drivers for growth in all spheres of real estate, including residential, commercial and retail. Rapid urbanization in the country is pushing the growth of real estate. Indian real estate developers have shifted gears and accepted fresh challenges.

As India awaits policy reforms to pick up speed, your Company firmly believes that the demand for Real Estate in a country like India will remain strong in the medium to long term. Your Companys well accepted brand, contemporary architecture, well designed projects in strategic locations, strong balance sheet and stable financial performance even in testing times make it a preferred choice for customers and shareholders. Your Company is ideally placed to further strengthen its development potential by acquiring new land parcels.

Premium and Luxury Housing Demand

The structural shift towards premium and luxury housing represents one of the most durable opportunities in the Indian residential market. With homes above 1 crore now accounting for 50% of total annual sales, up from a negligible share just five years ago, and high-net-worth individuals, dual-income households, and returning NRIs driving demand, developers with strong brand equity and the ability to deliver quality products in prime locations are well positioned to capture sustained value creation. The RBIs rate cut to 5.25% further enhances the economics of premium homeownership.

GCC and Flex Expansion in the Office Space

Indias emergence as the global destination of choice for Global Capability Centre (GCC) expansion is creating a multiyear runway for office market growth. A strong deal pipeline is expected to drive annual office absorption towards the 100 million sq. ft. milestone within the next two years. With GCCs already accounting for 44% of Q1 2026 office absorption, the structural demand driver is intact and accelerating.

Affordable Housing: Policy-Driven Opportunity

While private market dynamics have shifted decidedly towards premium housing, the affordable segment presents a significant policy-driven opportunity. Knight Frank estimates Indias urban affordable housing deficit at 9.4 million units currently and projected to widen to nearly 30 million units by 2030. PMAY-U 2.0, SWAMIH 2.0, and the Urban Challenge Fund collectively create a framework within which private developers can partner with government on well-structured, government-supported affordable housing delivery, a model that can generate stable, long-term returns while addressing one of Indias most pressing social infrastructure challenges.

Logistics and Industrial Real Estate

Beyond residential and office, Indias logistics and industrial real estate sector is poised for significant growth, driven by the China-plus-one strategy of global manufacturers, government-led incentives in electronics, automotive, and pharmaceuticals, and rapid e-commerce expansion. Knight Frank projects approximately 5% rental growth in key logistics hubs such as Bengaluru, Mumbai, and NCR in 2026, outperforming most Asia-Pacific markets. Indias skilled workforce, strategic geographic positioning, and active participation in global supply chains make logistics and warehousing an increasingly compelling asset class for institutional investors.

CHALLENGES:

While the management of your Company is confident of creating and exploiting the opportunities, it also finds the following challenges:

• Unanticipated delays in project approvals;

• Availability of accomplished and trained labour force;

• Increased cost of manpower;

• Rising cost of construction lead by increase in commodity prices;

• Growth in auxiliary infrastructure facilities; and

• Over regulated environment.

Regulatory and Approval Delays

Despite significant improvements post-RERA, regulatory complexity remains a persistent challenge. Delays in land use approvals, construction permits, and retrospective policy changes continue to introduce cost and timeline risks into project execution. As the market shifts towards larger-scale, premium developments, the stakes associated with approval delays have risen commensurately, making regulatory navigation a critical competency for developers.

Affordability Compression and Demand Bifurcation

The sustained price escalation across major markets, led by NCR at 19% YoY Hyderabad at 13%, and Bengaluru at 12% in CY 2026, is increasingly compressing affordability in the mid-income and affordable segments. The 17% decline in sub 50 lakh home sales and the 8% drop in the 50 lakh to 1 crore bracket in CY 2025 signal that a significant segment of potential buyers is being priced out of the formal market. Without continued government support through PMAY-U 2.0 and interest subvention schemes, this bifurcation risks deepening, with implications for both long-term market health and social equity.

Financing Costs and Developer Leverage

While the RBIs rate cut trajectory is broadly supportive, smaller and mid-sized developers continue to face challenges in accessing competitively priced capital. The divergence between large, well-capitalised developers, who benefit from strong brand equity and diversified funding sources, and more leveraged regional players remains pronounced. Rising construction material costs, higher land acquisition prices, and the continued shift towards premium products have collectively increased capital requirements for competitive development, creating structural barriers for smaller participants.

Human Resources and Technology Transition

Indias real estate sector continues to grapple with skilled labour shortages that disrupt construction timelines and inflate project costs. The imperative to reduce dependence on manual labour through the adoption of modern construction methods, including pre-fabrication, modular construction, and digital project management tools, is pressing. At the same time, the rapid integration of AI, data analytics, and PropTech into sales, asset management, and facility operations requires developers to invest in technology capabilities, with those who fail to adapt at risk of losing competitive ground to digitally native platforms and tech-forward developers.

The Indian real estate sector is still dependent on old building techniques and hence they are over-dependent on extensive human labour for construction activities. Whereas, high-quality building materials such as concrete and iron slabs are used in new construction techniques. India is touted to be the most populous country by the year 2050. More than 50 per cent of people are urban center and Tier 1 cities. To accommodate the population, India would require more new cities and urban center on a mass scale in order to provide the required resources to the inhabitants.

Monetary Tightening and Funding Issues

The lending to real estate developers by the NBFCs and HFCs was already limited after the IL&FS crisis and the pandemic has further deteriorated the liquidity situation for weaker developers who had to resort to alternative funding in absence of long-term loans from banks.

In recent years, the landscape of real estate financing has shown a marked divergence. Well-established developers with lower debt levels have continued to secure funding with relative ease, benefiting from the selective approach of lenders, while those with weaker financial standings have encountered challenges in accessing capital. The performance of the real estate sector is intricately connected to the broader economic recovery and the prevailing monetary policies. The RBI has adopted an accommodative stance for now to bolster economic growth but has kept a hawk eye on the inflation trajectory. The central bank could reverse its stance, which may pose challenges for the real estate sector in the form of higher housing loan costs and an escalation in financing costs for developers.

COMPANY STRENGTHS:

Your Company continues to capitalize on the market opportunities by leveraging its key strengths. These include:

1. Brand Reputation: Enjoys higher recall and influences the buying decision of the customer. Strong customer connects further results in higher premium realizations.

2. Execution: Possesses a successful track record of quality execution of projects with contemporary architecture.

3. Strong cash flows: Has built a business model that ensures continuous cash flows from their investment and development properties ensuring a steady cash flow even during the adverse business cycles.

4. Significant leveraging opportunity: Follows conservative debt practice coupled with enough cash balance which provides a significant leveraging opportunity for further expansions.

5. Outsourcing: Operates an outsourcing model of appointing globally renowned architects/contractors that allows scalability and emphasizes contemporary design and quality construction - a key factor of success.

6. Transparency: Follows a strong culture of corporate governance and ensures transparency and high levels of business ethics.

7. Highly qualified execution team: Employs experienced, capable and highly qualified design and project management teams who oversee and execute all aspects of project development.

HUMAN RESOURCES:

The timely availability of skilled and technical personnel is one of the key challenges. The Company maintains healthy and motivating work environment through various measures. This has helped the Company to recruit and retain skilled work force which would result in timely completion of the projects. The Company has cordial relation with the employees and contractors of the company. The staff has the depth of experience and skills to handle companys activities. Skilled team of workers and other professionals ensure superior quality standards during every stage of work. The total employee strength as on March 31,2026 was 75 (Seventy-Five Only).

Performance Management System:

Your Company has adopted a holistic approach to the performance management process that focuses on three broad categories - Nurture & Engage, Connect & Coach, Capability Building & Development.

The process begins with the Annual Goal Setting exercise that provides clarity to all employees about their targets. Goal setting ensures a commitment from all employees to achieve higher business milestones and alignment to the organizations goals at a macro level. The process is followed by a formal Mid Year Review and the Annual Review and Rating exercise.

The essence of the performance management process is Continuous Performance Management (CPM). CPM is an agile, modern, human centered approach of evaluating and improving employee performance. It fosters a forward-looking mindset and has an emphasis on real time, frequent check-ins and documentation. It is an approach that breaks the stereotype of formal later date discussions, rather it lays emphasis on spot feedback. The continuous check-ins help create an environment of trust, strengthen relationships, build communication and provide remedial coaching to the employees thereby assisting them to realize their full potential.

The Succession Planning helps in identifying the Critical Roles and High Potential employees who can take up these roles in the future. The process ensures business continuity, creates a pipeline for future leaders and provides employees with a defined growth path and an opportunity for a structured and focused learning.

Your Company has a robust Career Development framework that gives employees the power to define aspirations and take charge of their career. They can discuss their development needs and aspirations with their managers and carve a development plan for the future. Your Company extends the required assistance to employees and provide them with opportunities that can facilitate employees to grow both personally and professionally. This enables employees to achieve their career goals and in turn creates a set of motivated, valuable and skilled workforce.

Learning & Development:

The Learning & Development function aims to foster a culture of continuous collaboration and learning. The blended approach to Learning helps in development of Technical, Behavioral, Leadership as well as General Management skills.

Mental Wellness:

Mental wellness is a positive state of mental health. It ensures that individuals think, feel and act in ways that will create positive impact on their personal and professional life. Keeping this in mind, your Company launched 24/7 Employee Assistance Program (EAP).

This program offers professional counseling services to all employees seeking help in managing concerns related to their life. It supports employees who experiences problems that affect their well-being and performance at work. These sessions are conducted privately and ensures complete confidentiality.

For the benefit of all employees, your Company organized the mental wellbeing session facilitated by professional counsellors covering certain real-life issues and topics like managing disagreements, dealing with lockdown situations, parenting, time management, work life balance, stress management and others.

This program has greatly assisted employees during the current unprecedented and challenging times. It has enabled them to manage stress, handle challenges and build stronger relations. This has led to a happier, healthier, focused and more productive workforce.

Health and Safety:

Your Company is always committed to the health and safety of its employees. Your Company provides a clean, hygienic and conducive work environment to all employees. All offices and sites go through regular sanitation, social distancing norms are followed, sanitizers are placed at various locations, visitors entries are minimized, wearing masks is mandatory. Weekly mailers are sent to educate employees regarding safety measures to be practiced during all the times.

Benchmarking:

It is your Companys constant endeavor to improve its processes and policies. Your Company strives to improve its policies and processes on a continuous basis and benchmarking as a tool assists in achieving the same. It helps to identify actionable insights and stay up to date with Human Capital trends.

Fun at work:

The Fun at Work Committee focuses on innovative initiatives to engage the workforce as enjoying work and ensuring camaraderie is a key element of employee happiness. Celebrations around festivals and cultural activities break the monotony at work and help people to have a more positive mind set, higher levels of wellbeing and better mental health.

ABOUT COUNTRY CONDOS LIMITED

Country Condos Limited vide CIN: L63040TG1987PLC007811, is a listed public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The equity shares of the Company are listed on BSE Limited and the National Stock Exchange of India Limited , providing the Company with an established public market presence and the regulatory framework applicable to listed entities. The Company has a paid-up equity base of 7,75,97,300 equity shares , having a face value of 1 each , representing a paid-up share capital of 7,75,97,300 .

The Company presently operates in the real estate segment and has established itself as a trusted name in the real estate sector and has been actively engaged in real estate development since 2006.

Historical Evolution and Strategic Shift

• The Company was incorporated in 1987 as Neocure Therapeutics Private Limited and began business in pharmaceuticals.

• Company became a public limited company in 1988 and raised public funds in FY 1995 -96 for its business and expansion.

• In 1997, the Company expanded its business objects to include hotels, resorts, holiday homes, condos and related activities.

• The Company later moved into real estate and changed its name to Country Condos Limited in 2006. Its current business mainly involves developing land, selling plots, and proposing condos and holiday homes.

Current Business Activities

Land Bank Development

Identification, acquisition and holding of strategic land parcels across high-potential locations for present and future real estate development.

Residential Plotted Layouts

Development of residential layouts with planned roads, parks, open spaces, amenities and supporting infrastructure. Infrastructure & Site Development

Execution of compound walls, internal roads, utilities, water facilities, street lighting, landscaping and allied development works.

Plot Monetization

Sale of developed residential plots to customers across ongoing and proposed ventures in multiple states.

Amenity & Facility Areas

Potential monetization of facility areas, informal commercial spaces, association offices and other project-linked amenity zones.

Future Growth Projects

Proposed expansion into condos, holiday homes, resort-linked developments and leisure-oriented residential projects to create additional revenue streams.

GEOGRAPHIC PRESENCE

Project portfolio is diversified across multiple states and demand catchments.

Since entering the real estate sector in 2006, Country Condos Limited has developed and marketed residential plotting projects directly and through its associates, successfully registering 68,560 plots overall across its project portfolio to date.

The company first focused on Hyderabad and nearby areas, expanding across districts within 90-100 km of Hyderabad , including Bhongir, Jangaon, Mahabubnagar and Nalgonda , along with projects on the Sagar Road and Srisailam Road corridors.

Its wider presence also covers key markets in Rajasthan, Andhra Pradesh, Tamil Nadu, Maharashtra and Karnataka , with project relevance across locations such as Pilani, Sira, Chittoor, Theni, Dindigul and Virudhunagar .

Through its own and associate ventures, the company has registered and handed over a large number of residential plots, with 27,791 plots registered to date around Hyderabad, Telangana and 40,769 plots registered across Karnataka, Andhra Pradesh, Rajasthan and Tamil Nadu.

The above Indian map pictorial representation, gives the significance presence of Country Condos Limited across the nation. Whereby it is currently operating its land banks across the state of Telangana, Tamil Nadu, Andhra Pradesh, Rajasthan, Maharashtra and Karnataka.

PAN INDIA PROJECT PORTFOLIO

Country Condos Limited has developed and built a sizeable real estate portfolio across multiple states in India, with projects spread across Telangana, Andhra Pradesh, Karnataka, Maharashtra, Tamil Nadu, Rajasthan and Kerala. The Companys portfolio includes already developed and delivered projects, work-in-progress projects and identified future development projects.

Particulars	Details
Total Land Portfolio	5,011 Acres
Total Project Area	21.83 Crore Sq. Ft.
Total Area in Million Sq. Ft.	218 Million Sq. Ft.
Total Deeds Executed	68,579

COMPOSITION

	Portfolio Category	Acres	Total Sq. Ft.	Million Sq. Ft.
	Projects Already Developed & Delivered	4,415 Acres	19.23 Crore Sq. Ft.	192 Million Sq. Ft.
	Work-in-Progress Projects	526 Acres	2.29 Crore Sq. Ft.	23 Million Sq. Ft.
	Future Projects	70 Acres	30.49 Lakh Sq. Ft.	3 Million Sq. Ft.
	Grand Total	5,011 Acres	21.83 Crore Sq. Ft.	218 Million Sq. Ft.

DEVELOPED & DELIVERED PROJECTS - REGIONAL PORTFOLIO

PROJECTS ALREADY DEVELOPED AND DELIVERED

Country Condos Limited has already developed and delivered projects aggregating to approximately 4,415 acres, covering around 19.23 crore sq. ft. / 192 million sq. ft. across major regional markets.

Region	Acres	Total Sq. Ft.	Total Deeds
Hyderabad / Telangana Region	1,917.18	8.35 Crore	27,810
Bangalore / Andhra Region	1,516.64	6.61 Crore	28,041
Maharashtra Region	217.5	94.74 Lakh	1,701
Tamil Nadu & AP Region	754.2	3.29 Crore	10,523
Rajasthan Region	9.28	4.04 Lakh	183
Total Delivered Portfolio	4,415	19.23 Crore	68,258

Country Kuteeram, Thapovanam, Golf Village, Fairway, Sagar Sundarvan, Coconut Groove, Vedic Spa, Swarna Bhoomi, Rajbhoomi, Ratnabhoomi, Serene Hills, Vaigai Meadows, Temple City, Vajra Bhoomi, Golf Village near Tiruthani and Sarzameen. The Company has demonstrated execution capability through a large completed portfolio across multiple regions, with substantial deed execution reflecting customer allotment and sale activity.

WORK-IN-PROGRESS & FUTURE PROJECT PIPELINE

WORK-IN-PROGRESS PROJECTS PIPELINE

In addition to its completed portfolio, Country Condos Limited has a sizeable pipeline of work-in-progress and future projects aggregating to approximately 596 acres, covering around 2.60 crore sq. ft. of planned / under-development area.

Project / Venture	Location	State	Acres	Total Sq. Ft.
Capital Meadows - Phase 2	Mursalapalli	Andhra Pradesh	13.12	5.72 Lakh
Pilani Domiciles	Near Pilani	Rajasthan	32.77	14.27 Lakh
Vikhare Ghotane	Rajapur	Maharashtra	7.34	3.20 Lakh
Telangana / Hyderabad Ventures	Near Hyderabad	Telangana	396	1.72 Crore
Tamil Nadu Ventures	Near Madurai	Tamil Nadu	44.82	19.52 Lakh
Andhra Pradesh / Chittoor Ventures	Near Chittoor	Andhra Pradesh	32	13.94 Lakh
Total Work-in-Progress			526 Acres	2.29 Crore Sq. Ft.

FUTURE PROJECTS PIPELINE

The Companys future growth is supported by identified projects in Telangana, Maharashtra, Rajasthan, Tamil Nadu and Andhra Pradesh, providing a continued development pipeline beyond its completed portfolio.

Project / Location	State	Acres	Total Sq. Ft.
Near Dindi Reservoir	Telangana	35	15.25 Lakh
Sindhudurg	Maharashtra	35	15.25 Lakh
Total Future Projects		70 Acres	30.49 Lakh Sq. Ft.

The Companys Net worth remained positive and improved steadily over the Five-year period, reaching Rs.25.69 Cr in FY 2025-26. Total Assets also increased to Rs.44.99 Cr in FY 2025-26, reflecting expansion in the Companys asset base.

The positive Net worth indicates Financial stability, while the increased asset base provides a stronger platform for business operations, project monetisation, and future revenue generation.

Project	Concept / Location	Proposed Plan	Key Demand Drivers	Strategic Potential
Dindi Holiday Homes	Nature-led holiday home / resort-style project at Dindi, Telangana, positioned for Hyderabad weekend travelers and tourists moving towards Srisailam.	50 rooms; approx. 35 lakh per room;	Dindi Reservoir, greenery, monsoon views, Hyderabad-Srisailam Highway, pilgrimage route to Srisailam, proximity to Amrabad Tiger Reserve.	Suitable for weekend stays, family getaways, farmhouse-style stays, nature resorts and long-term tourism-led appreciation.
Sindhudurg Coastal Holiday Homes	Premium coastal holiday home project in the Sindhudurg-Goa tourism belt, designed for beach tourism, second homes and leisure rentals.	50 rooms; approx. 35 lakh per room;	Tarkarli Beach, Devgad Beach, Kunakeshwar coastal belt, Sindhudurg Fort, Devgad Fort, Kunakeshwar Temple, Chipi Airport, Mopa Airport and Konkan Railway connectivity.	Positioned as a quieter alternative to Goa, with potential for boutique stays, serviced rooms, coastal villas, wellness retreats and premium holiday rentals.
Kolad, Raigad District, Maharashtra	Riverfront adventure and nature holiday home project positioned for Mumbai and Pune weekend travelers.	50 rooms; approx. 35 lakh per room;	Kundalika River rafting, camping, monsoon tourism, waterfalls, Western Ghats greenery, Mumbai-Goa tourism corridor, road and rail connectivity.	Suitable for short-stay tourism, corporate outings, youth groups, family retreats, adventure packages and rental-based holiday homes.

OUTLOOK:

The global economic environment as we enter FY 2026-27 remains complex and uncertain. Escalating trade tensions, tariff wars, and rising protectionism continue to weigh on global trade and investment flows, prompting downward revisions to growth forecasts across major economies. Geopolitical volatility, most significantly the ongoing conflict in West Asia and its cascading impact on energy supply routes, has added further headwinds, dampening investor sentiment and weakening cross-border cooperation. The IMFs April 2026 World Economic Outlook projects global growth to moderate to 3.1% in 2026 and 3.2% in 2027, with the slowdown and inflationary pressures expected to be particularly pronounced in emerging market and developing economies. Global headline inflation is projected to rise modestly in 2026 before resuming its decline in 2027, a sharp departure from the recent downward trend.

The disruption of the Strait of Hormuz, one of the worlds most critical energy chokepoints through which approximately a quarter of global seaborne oil trade passes, has had direct and immediate consequences for energy markets globally. For India, the impact of the conflict in West Asia is particularly significant given its substantial dependence on crude oil, natural gas, and fertiliser imports from the Gulf region. Higher energy costs remain a key variable influencing Indias growth and inflation outlook. The Gulf also remains an important destination for Indian exports and a major source of remittances, making regional stability a matter of direct economic relevance.

India, however, continues to stand out as a beacon of resilience and opportunity. Building on a strong FY 2025-26, in which real GDP grew an estimated 7.6%, driven primarily by private consumption and fixed investment even as net external demand remained subdued, India enters FY 2026-27 on firm footing. The IMFs April 2026 World Economic Outlook has raised Indias FY 2026-27 GDP growth forecast to 6.5%, affirming Indias position as the fastest growing major economy, well ahead of China, the United States, and other large economies. India is also emerging as a net beneficiary of the global realignment of supply chains, as manufacturers seek to diversify away from China, a structural shift supported by Indias competitive labour costs, improving infrastructure, expanding production capabilities, and large English-speaking workforce. Near-term risks, however, bear watching. IMD has forecast below-normal monsoon rainfall for 2026, at approximately 90% of the long-period average, on account of the emerging El Nino phenomenon, which could weigh on kharif crop production, rural incomes, and food inflation in the months ahead.

Strong domestic demand, a dynamic services sector, and a gradual revival in private sector investment continue to anchor Indias economic momentum. Government led capital expenditure on infrastructure, PLI schemes to boost manufacturing, and the continued formalisation of the economy are expected to yield significant long-term productivity gains. The Union Budget 2026-27 reinforces this infrastructure-led growth strategy, with public capital expenditure rising to 1 12.2 lakh crore from i 11.2 lakh crore in FY 2025-26. While the budget does not introduce direct demand-side incentives for housing, its sharp focus on infrastructure, manufacturing, and urban development, and in particular the introduction of City Economic Regions, planned urban clusters designed to integrate residential, commercial, industrial, and civic infrastructure supported by an allocation of i 5,000 crore per region over five years, is expected to create strong indirect momentum across real estate segments and unlock new growth corridors beyond traditional metro markets.

Against this backdrop, the real estate sector is well positioned to benefit from Indias structural growth story. Contributing 7.3% to Indias GDP and acting as a catalyst across more than 250 allied industries, real estate is widely recognised as a critical lever for employment generation, capital formation, and urban development. With policy support, demographic tailwinds, and growing investor confidence, the sector is undergoing a sustained transformation that positions it for meaningful long-term growth.

For Country Condos Limited, this macro environment aligns well with our own trajectory. Having delivered good performance in FY 2025-26, achieving good booking value, collections, operating cash flows, and net profit, we enter FY 2026-27 from a position of real strength. A robust launch pipeline, a good balance sheet, deep market presence across Indias major cities, and a proven ability to execute at scale give us confidence in our continued momentum. Our strategy, grounded in customer-centricity, design excellence, sustainability, and informed capital allocation, ensures we remain at the forefront of Indias real estate evolution, continuing to create long-term value for our customers, partners, investors, and communities. Having demonstrated strong performance over the last three to four years, we are well-positioned to capitalise on emerging opportunities. Our strategy, grounded in disciplined growth, customer centricity and sustainability ensure that we remain at the forefront of Indias real estate evolution—creating long-term value for all stakeholders.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has an adequate internal control system, corresponding with the size and nature of its business. The system of internal control is supported by documented policies, guidelines and procedures to monitor business and operational performance which are aimed at ensuring business integrity and promoting operational efficiency. It ensures timely and accurate financial reporting in accordance with applicable accounting standards, safeguarding of assets against unauthorized use or disposition and compliance with all applicable regulatory laws and Company policies.

The Company has an Internal Auditor who oversees the entire internal audit function. Internal Auditors of the Company review the internal financial control systems on a regular basis for its effectiveness and necessary changes and suggestions are duly incorporated into the system. However, given the size of its operations in terms of nature of its business, it also uses services of independent audit firms to conduct periodic internal audits in line with an audit plan that is drawn at the beginning of the year. This audit plan, prepared by the Internal Auditor, is approved by the Audit Committee and the Board of Directors.

Internal audit reports are placed periodically before the Audit Committee of the Board of Directors, which reviews the adequacy and effectiveness of the internal control systems and suggests improvements for strengthening them.

The Company has also focused on upgrading the IT infrastructure - both in terms of hardware and software. In addition to the existing ERP platform, the Company is presently reviewing the process documentation to ensure effectiveness of the controls in all the critical functional areas of the Company.

SEGMENT WISE PERFOMANCE:

The Company is primarily engaged only in the business of sale of Plots under Real Estate Segment in India. As per the Indian Accounting Standard 108 on Segment Reporting, the Board would like to inform that under the real estate segment total Revenue was 1748.35 Lakhs only. The Total Profit Before Tax for the Company was 87.44 Lakhs only & Total Profit After Tax for the Company was 59.41 Lakhs only.

Financial performance overview

Analysis of financial statements for FY 2025-26 is provided below:

Key Financial Ratio Analysis :

In accordance with SEBI (Listing Obligations and Disclosure requirements 2018) (Amendment) Regulations 2018, the Company is required to give details of significant changes (Change of 25% or more as compared to the immediately previous financial year) in key sector specific financial ratios.

A comparative table showing synopsis of FY 2025-26 versus FY 2024-25 of Key Financial Ratio is provided below:

( in Lakhs^

Ratios	Numerator	Denominator	Current year	Previous year	Variance (in %)	Explanations / Remarks
Current ratio (in times)	Total current assets	Total current liabilities	2.30	3.02	23.80	Decrease in Ratio is due to increase of current liabilities
Debt-Equity ratio (in times)	Debt consists of borrowings and lease liabilities*	Total Equity	0.00	0.00	00.00	There is no borrowings and lease liabilities
Debt service coverage ratio (in times)	Earning for Debt Service = Net Profit before taxes + Non-cash operating expenses + Interest + Other non-cash adjustments	Debt service = Interest and lease payments + Principal repayments*	18.62	7.20	158.64	The company has sufficient earnings in servicing the debt on time
Return on equity ratio (in %)	Profit for the year less Preference dividend (if any)	Average total equity	11.35	9.60	18.20	Return on equity increased due to increase in Profit
Inventory Turnover Ratio (in times)	Cost of goods sold OR sales	Average Inventory	0.12	0.19	36.45	Inventory Turnover changes due to increase of closing inventory.
Trade receivables turnover ratio (in times)	Revenue from operations	Average trade receivables	N.A	N.A		(No Trade receivables). As the company Selling its products only after receiving the advance from Customers.
Trade payables turnover ratio (in times)	Purchase of Services and other expenses	Average trade payables	N.A	N.A		There are no trade suppliers payable amount
Net capital turnover ratio (in times)	Revenue from operations	Total Equity	2.25	2.15	4.65	Increase in ratio due to Increase of Revenue.
Net profit ratio (in %)	Profit for the year	Revenue from operations	5.04	4.46	12.95	Net profit ratio Increase due to Increase in Sales
Return on capital employed (in %)	Profit before tax and finance costs	Capital employed = Tangible Net worth + Lease liabilities + Deferred tax liabilities	11.35	9.60	18.20	Increase in ratio due to increase of Profit

Return on investment (in %) - Unquoted	Income generated from invested funds	Average invested funds in treasury investments	N.A.	N.A.		Ratio not applicable as there is no income generated from invested funds
Operating Profit ratio	Earnings before Interest, Tax and Amortization	Net Operating Sales	5.87	5.42	8.35	Increase in ratio due to Increase of Operating income
Return on Net worth	Net Income	Shareholders equity	13.23	11.67	13.38	Increase in ratio due to Increase of Sales

CAUTIONARY STATEMENT:

This Management Discussion and Analysis contain forward looking statements within the meaning of applicable security laws and regulations that reflects your Companys current views with respect to future events and financial performance. The actual results may differ materially from those anticipated in the forward-looking statements as a result of many factors. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties, regarding fluctuations in earnings, our ability to manage growth, competition, economic growth in India, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, government policies and actions with respect to investments, fiscal deficits, regulation etc. In accordance with the Code of Corporate Governance approved by the Securities and Exchange Board of India, shareholders and readers are cautioned that in the case of data and information external to the Company, no representation is made on its accuracy or comprehensiveness though the same are based on sources thought to be reliable. The Company does not undertake to make any announcement in case any of these forward-looking statements become materially incorrect in future or update any forward-looking statements made from time to time on behalf of the Company.

For and on behalf of the Board of Directors of COUNTRY CONDOS LIMITED

PLACE: HYDERABAD	Y VARUN REDDY	D. KRISHNA KUMAR RAJU
DATE : 04-09-2026	VICE-CHAIRMAN & DIRECTOR	VICE-CHAIRMAN & CEO
	DIN:01905757	DIN: 00115553