Crest Ventures Ltd Management Discussions

GLOBAL ECONOMY

FY 2025-26 was a more demanding year for the global economy. The IMFs April 2026 World Economic Outlook put growth at 3.1% for 2026, down from 3.4% in 2025, as geopolitical tensions, trade-policy uncertainty and the escalation in the Middle East weighed on the world economy.

The US tariff regime eased somewhat following the India-US Interim trade deal and the India-EU Free Trade Agreement but continued to weigh on global trade and investment. The West Asia conflict, which escalated from late February 2026, lifted energy prices and added market volatility throughout the rest of the year.

Inflation stayed broadly contained for most of the year, allowing advanced economy central banks to move from tightening to easing, though the West Asia escalation slowed further rate cuts later in the year. Growth in advanced economies remained below trend, while India and other emerging markets continued to outperform on strong domestic consumption and capital expenditure.

INDIAN ECONOMY

India retained its position as the fastest-growing major economy in FY 2025-26. The IMF revised its 2025 GDP estimate for India to 7.6%, while the RBI raised its own projection to 7.3% in December 2025. Q2 FY26 grew at 8.2%, the strongest in six quarters, driven by resilient domestic demand, public capital expenditure and the GST 2.0 rationalisation.

CPI inflation fell sharply in the first half of the year, from 1.55% in July 2025 (the lowest since June 2017) to a record low of 0.25% in October 2025, before reversing as food and crude oil prices rose amid the West Asia conflict, taking CPI back to 3.40% by March 2026. The RBI cut rates four times through December 2025, taking the repo rate to 5.25%, a cumulative 125 bps of easing, before pausing in February 2026 amid the more uncertain backdrop.

Indias external position was broadly sound for most of FY 2025-26. Forex reserves peaked at around USD 717 billion in early March 2026, covering close to eleven months of imports, while the current account deficit for the first nine months stood at USD 30.1 billion (1.0% of GDP), helped by services exports and record private remittances of USD 35.3 billion. The picture worsened in the closing weeks of the year: reserves fell by over USD 30 billion as the RBI defended the rupee against pressure from higher crude prices, FPI outflows and elevated US Treasury yields, and the rupee weakened significantly by fiscal year-end, a trend worth watching for its effect on input costs and NRI buyer sentiment in premium housing.

The Union Budget for FY2025-26, GST 2.0 rationalisation and expanded production-linked incentives kept investor sentiment constructive through the year, while the India-EU Free Trade Agreement and progress on the India-US trade agreement reinforced Indias standing as a preferred investment destination. The RBI projected 7.4% GDP growth for FY 2026-27 in its February 2026 statement, though the West Asia escalation and elevated crude prices introduce some downside risk to that outlook.

REAL ESTATE

Crest Ventures Limited (CVL or the Company) is committed to developing Built by Design high-quality real estate assets through the greenfield and redevelopment routes. Our focus lies in identifying projects that offer strong risk-adjusted returns, with an emphasis on optimising Return on Capital Employed and maximising our Internal Rate of Return through disciplined capital deployment and active project management.

We operate an asset-light development model, participating in projects through Joint Development Agreements, redevelopment partnerships and project management engagements, primarily in the Mumbai Metropolitan Region, with a presence in Chennai, Jaipur and Raipur. Through this model, we provide project capital at a defined cost, earn fees for our role as project managers, and retain a share of project revenues, allowing us to optimise our equity deployment and manage downside risk while maintaining strong execution oversight. The Company also, on a selective basis, acquires land parcels outright as capital assets where the opportunity is compelling, complementing this asset-light approach for value creation, as with the Companys acquisition of the Dadar land parcel underlying Crest Legacy.

Our in-house team manages design, planning, regulatory liaison, construction execution, financial management and sales, ensuring meticulous attention to detail and delivery quality across the portfolio. The Companys credit-linked participation, in projects that it develops in partnership, further reinforces cash flow visibility and enhances overall returns on capital.

(i) Industry Structure and Developments

The Indian residential real estate sector sustained its structural momentum in FY 2025-26, driven by deepening premium demand, improving housing affordability through the rate-easing cycle, and continued urbanisation. According to Knight Frank India, 348,247 housing units were sold across the top eight cities in calendar year 2025, with Mumbai the largest single market at 97,188 units, accounting for approximately 28% of aggregate sales across those cities.

A pronounced structural shift continued in CY 2025: homes priced above 1 crore represented 50% of total residential sales across the top eight cities, up from 44% in 2024, with 175,091 premium units transacted - a 14% year-on-year increase. The sub-50 lakh segment contracted, with sales declining 17% year-on-year to 73,694 units and its share of total volumes falling to 21%, compared with nearly 37% in 2022. Weighted-average residential prices rose across all top-eight markets in 2025, with NCR (+19%), Hyderabad (+13%), Bengaluru (+12%) and Mumbai (+7%) leading the appreciation.

Mumbais residential market entered FY 2025-26 on a strong base, following a record FY24-25 in which 49,191 units worth 1,24,138 crore were sold - a 26% year-on-year increase. Momentum was sustained into the current year: MMR property registrations reached an all-time monthly high of 12,219 in November 2025, and stamp-duty collections from MMR registrations were up 12% year-on-year. Unsold inventory across the MMR continued its multi-year decline, reflecting healthy absorption, particularly in redevelopment-led micro-markets.

The luxury and ultra-luxury segments in Mumbai, particularly Bandra (West), Pali Hill, Worli and South Mumbai, continued to outperform the broader market. The Knight Frank Prime Global Cities Index for Q2 2025 ranked Mumbai sixth globally, with prime residential prices rising 8.7% year-on-year against a global prime average of 2.3%. Demand for boutique redevelopment projects in established neighbourhoods remained concentrated among UHNIs, senior professionals and NRIs, driven by a combination of aspirational positioning, restricted new supply, and the appeal of modern residences within legacy micro-markets.

The RBIs rate-easing cycle, which reduced the repo rate to 5.25% by December 2025, improved home-loan affordability and supported buyer confidence in both the premium and mid-income segments through the greater part of the year. Knight Franks September 2025 Greater Mumbai Redevelopment Outlook projects the unlocking of approximately 44,277 new free-sale apartments worth 1.31 lakh crore by 2030, with the Western Suburbs corridor from Bandra to Borivali accounting for roughly 73% of that pipeline - a structural dynamic that aligns well with the Companys micro-market focus.

(ii) Opportunities

Mumbais large stock of ageing residential and commercial buildings underpins a deep and enduring redevelopment opportunity. Established neighbourhoods across central and western Mumbai - where land availability is constrained and buyer aspiration is high - offer meaningful scope for boutique, premium redevelopment. The Maharashtra governments recent policy amendments to accelerate redevelopment on former mill lands, and MCGMs deployment of AI-assisted building plan approvals, are expected to improve execution timelines in central Mumbai corridors.

Rate cuts through most of the year and the consequent improvement in home-loan affordability are expected to broaden the buyer base for premium housing, particularly as real incomes grow in a 6-7% GDP environment. Institutional capital flows into Indian real estate remained healthy through the year. The continued depth of institutional capital reinforces the sectors overall liquidity profile. The Companys diversified model spanning direct development, joint development agreements, project-management agreements, structured credit to partner developers, and commercial annuity assets positions it to participate across multiple value pools within the Mumbai real estate ecosystem. The Companys presence in Jaipur, Raipur and Chennai adds geographic diversification in markets characterised by improving infrastructure, rising aspirational demand, and a broadly favourable supply-demand balance.

(iii) Performance

1. Crest 4 Pali Hill - Bandra (West), Mumbai

Crest 4 Pali Hill is an ultra-luxury residential development project of the Company, situated on a prime land parcel in Pali Hill, Bandra (West) - one of Mumbais most exclusive and tightly regulated neighbourhoods, characterised by its green cover, heritage character and concentration of legacy residences.

During FY 2025-26, the project achieved several key regulatory and construction milestones: the full IOD was received, a Commencement Certificate was obtained up to the top of the second podium, and superstructure construction commenced following completion of plinth work. The Company is developing the project with an emphasis on architectural distinction, curated amenities and premium finishes, consistent with its brand standards at the luxury end.

2. Crest Oaks - Marol, Andheri (East), Mumbai

Crest Oaks is a mid-premium residential development in Marol, Andheri (East), a well-connected transit and commercial node served by the metro network, Chhatrapati Shivaji Maharaj International Airport, and arterial highways. The locality continues to attract professionals from SEEPZ, MIDC and the broader Western Suburbs.

FY 2025-26 was a decisive year of progress for the project. Building construction has been completed in its entirety, the project has received its full Commencement Certificate, and interior finishing work is underway across all units. Over 70% of inventory has been sold, a reflection of market confidence in both the product and the location. The near-completion stage is expected to support accelerated final sales closure and OC receipt in the near term.

3. Crest Golfshire - Chembur, Mumbai

Crest Golfshire is a large residential-led mixed-use development in Chembur, Mumbai, a corridor that has seen meaningful appreciation in recent years on the back of improving social infrastructure, enhanced connectivity, and growing premium residential demand. A key feature of the project is its location across the golf course, which lends it a distinctive positioning in the micro-market. The project is being developed under a Joint Development Agreement with Vensco Projects LLP. The project, spread across approximately 11,000 sq. m., is positioned to be one of the largest single-parcel development projects in the rapidly developing neighbourhood of Chembur, Mumbai. The project was launched on 11 February 2026. On-site activity is underway, with piling and excavation in progress. Chemburs growing appeal as a well-located alternative to the higher-cost western-suburb micro-markets has been a key factor in the projects early positioning.

4. Crest Saidale - Breach Candy, Mumbai

Crest Saidale is a premium residential redevelopment opportunity in Breach Candy, one of Mumbais most sought-after South Mumbai addresses, offering sea views and proximity to the areas established social and cultural infrastructure. The project has been secured through a Development Agreement with the society.

Key regulatory milestones achieved during the year include receipt of the CFO NOC, with concession approvals currently under process. The project is at an advanced pre-construction stage, with construction expected to commence following receipt of the pending approvals.

5. Crest Uno - Union Park, Bandra (West), Mumbai

Crest Uno is a boutique residential redevelopment in Union Park, Bandra (West) - a well-regarded neighbourhood characterised by premium retail, fine dining establishments, and strong citywide connectivity. The project has been secured under a Development Agreement.

During FY 2025-26, the project received both its Intimation of Approval and Commencement Certificate, and piling work was initiated, formally marking commencement of construction. Crest Uno is positioned as a curated premium residential offering in a high-demand, low-supply micro-market, consistent with the aspirational character of Union Park.

6. Crest Greens Phase II & III - Raipur

Crest Greens is a large-format township development in suburban Raipur, Chhattisgarh, built on the foundation of the very successful, fully delivered Phase I. The project is located on Kota Road and is being executed through Ramayana Realtors Private Limited, in which the Company holds a 50.01% stake.

Phase II, comprising plotted layouts, has commenced construction. Phase III, which will feature a multi-storeyed residential tower, is expected to follow soon. Raipur continues to record steady urban expansion, and demand from both end-users and investors has been consistent, underpinned by the brand goodwill established through Phase Is successful delivery. Infrastructure works including internal roads, landscaping and community amenities are progressing in parallel to ensure the site develops as a cohesive residential ecosystem.

7. Crest Park - Bani Park, Jaipur

Crest Park is a premium residential plotted development in Bani Park, one of Jaipurs most prestigious and well-located neighbourhoods, known for its heritage character, tree-lined avenues, and proximity to the citys administrative and commercial core.

FY 2025-26 was a strong year of execution for this project. Phase 1 has been completely sold out, Phase 2 sales are active, and overall project completion is expected by July 2026. Phase 1 handovers are progressing on schedule, reinforcing buyer confidence in the Companys execution credibility. Demand from local HNIs and NRIs has been consistent, supported by the projects clear title, deliberate planning, and the Crest brands growing recognition in Jaipur. The project has established a platform for further opportunities in the Rajasthan market.

8. One National Park - Velachery, Chennai

One National Park is a Grade A commercial development in Velachery, Chennai, a high-growth corridor with direct access to the citys airport, arterial roads and metro network. The project encompasses approximately 6 lakh square feet of leasable office space and has been developed through Starboard Hotels Private Limited, a 50:50 joint venture between the Company and The Phoenix Mills Limited.

FY 2025-26 was a landmark year for this asset. The project received its Occupancy Certificate, and leasing activity progressed strongly. Leasing stood at approximately 66% as on 31 March 2026, with tenants drawn from the IT, consulting, automobiles, universities and professional services sectors. Annuity income from the asset has commenced and the project is expected to reach stabilised occupancy over the course of FY 2026-27. One National Park is positioned as a high-quality institutional office asset and is expected to contribute meaningfully and on a sustained basis to the Companys rental income stream.

9. Crest Legacy – Dadar, Mumbai

Crest Legacy is a strategically located land parcel in Dadar (East), Mumbai, positioned at the heart of the citys central corridor and benefiting from strong connectivity, robust social infrastructure, and consistent demand from both end-users and investors. The land was acquired outright by the Company, reflecting a selective and opportunistic approach to direct land acquisition in strategic corridors, alongside the Companys broader asset-light development model. The project presents a significant cluster redevelopment opportunity aligned with Mumbais progressive urban renewal policies. Pre-construction activities including architectural planning, feasibility assessments and regulatory groundwork are underway, and negotiations with neighbouring societies are in progress to expand the project footprint and optimise development potential. With clear title and a well-defined development opportunity in a compelling location, Crest Legacy is positioned to emerge as a transformative urban development in the Dadar skyline.

10. Crest Link

Crest Link is a landmark mixed-use development located on Linking Road, Khar (West), a vibrant, high-footfall zone that blends upscale retail with residential charm. The projects residential component has been fully sold out, driven by Bandras acute shortage of new launches and the projects premium positioning. During the year, the project received its Occupancy Certificate and possession was handed over to residential buyers. On the commercial side, space has been leased to marquee tenants, including De Beers Groups Forevermark Diamond Jewellery, its worlds largest flagship store, and a leading fashion brand, ensuring strong long-term rental income. The execution quality has been strong, with careful attention to frontage, accessibility, and premium finishes that align well with the expectations of both homeowners and commercial tenants.

11. Crest Mukta

Crest Mukta is a 100,000 sq. ft. commercial building in Andheri, a prestigious suburb of Mumbai. The building, co-owned by Crest Ventures Limited and Mukta Arts Limited, has been leased out to prestigious multinationals and is fully leased.

12. Project Hospital - Worli, Mumbai

A hospital development project in Worli, Mumbai, is progressing with the Company being involved as a project management consultant (PMC), in a premium central-Mumbai location with strong citywide connectivity.

Plans have been submitted and a Commencement Certificate has been received. Piling is currently in progress. This project is at an early stage of development and further details will be provided as it progresses through subsequent regulatory and construction milestones.

(iv) Risks and Concerns

Localised oversupply in certain Mumbai micro-markets, particularly at the luxury end, could pressure pricing and slow absorption for projects without a clear point of difference or a proven execution record. The Company manages this by targeting micro-markets with genuine supply constraints and strong buyer aspiration.

Input cost inflation across cement, steel, aluminum and labour continues to weigh on project margins. Cement prices rose through CY 2025 on stronger demand and consolidation among large players, while steel prices stayed above the FY24 base. Rupee weakness in the closing months of FY26 added further pressure on imported inputs and capital goods. The Company manages this through careful procurement, phased contracting and closer cost monitoring, though input cost inflation remains a risk.

Regulatory and approval timelines, including environmental clearances, municipal building plan approvals, and litigation risk inherent in redevelopment, remain an ongoing operational variable. The Company manages this with in-house regulatory and liaison expertise. Geopolitical tensions in the Middle East, and their effects on crude oil prices, the rupee and investor sentiment, are an external risk worth monitoring. Rupee depreciation can help NRI buyer interest in dollar terms, but sustained market volatility or a correction in Indian equities could affect domestic buyer liquidity, particularly at the premium end of the Mumbai market.

The RBIs rate trajectory remains a key variable. It paused the easing cycle in its February 2026 review amid renewed inflation and external-sector uncertainty; an extended hold or reversal would slow the pace of affordability improvement for rate-sensitive buyers.

(v) Outlook

The Company will continue to focus on projects in strategic, central locations with shorter gestation periods. This has been the core thesis behind Crests project selection and remains central to how the Company plans to grow.

With various projects spanning Mumbai, Chennai, Raipur and Jaipur across residential, mixed-use, commercial and institutional formats, the Company has a broader development pipeline than at any point in its recent history. The addition of Crest Golfshire, Crest Saidale, Crest Legacy and Project Hospital (the latter executed as a PMC) extends both the revenue pipeline and the strategic depth of the portfolio.

Near-term revenue and cash flows will be supported by the completion of Crest Oaks, Mumbai and Crest Park, Jaipur. Projects at earlier stages, including Crest 4 Pali Hill, Crest Uno and Crest Golfshire, should contribute to revenues over the next two to three years, with the upcoming launch of Crest Legacy in Dadar (East) forming the next tier of the pipeline.

The Company will continue to favour an asset-light development model, participating mainly through joint development and project-management arrangements, with selective direct development where returns justify it. New project additions will stay disciplined, with pricing and timelines calibrated to each micro-markets supply dynamics. This is complemented by an opportunistic approach to direct land acquisition in select high-value corridors, as reflected in the outright acquisition of the Dadar land parcel for Crest Legacy.

FINANCIAL SERVICES, INVESTMENT & CREDIT Financial Services

Our legacy has been built on a 30-year old track record of building large, successful businesses in the Financial Services sector, across various categories including investment banking, share registry, equity brokerage, retail distribution of financial products, fixed income and derivatives through joint ventures and partnerships with global industry leaders.

We provide intermediary services in the Government Securities Markets as well as the Corporate Bond Markets for the last 20 years. Our customers include Worlds Largest Banks, Mutual Funds, Financial Institutions, Corporate Treasuries, Provident funds, Investment Banks, Large Family Offices and Foreign Portfolio Investors. We also assist Foreign Portfolio Investors in procuring limits for their investments in Government Securities and Corporate Bonds.

We have an Integrated Derivatives Desk which intermediates on Interest Rate Swaps and Currency Options and is among the top brokers in this fast developing segment. The company is an approved Foreign Exchange Broker with more than 20 years of experience in the Inter-Bank Foreign Exchange Markets. The dealing room is managed by professionals and experienced brokers. Our desk offers broking services in the USD/INR Short & Long Swaps, Long Term Forwards (LTFX) and Outright Forward Segments. We are a leading funds mobilizer for large Mutual Funds. The Mutual Fund distribution business started in 2001 and services large Institutional Investors, Corporate Clients and High Net Worth Individuals through its compact and skilled AMFI certified sales team. We are distributors for third party products like PMS, AIF (Alternate Investment Funds), Fixed Deposits, Corporate Bonds and IPOs.

(i) Industry Structure and Developments

FY 2025-26 was an active year for Indias capital and financial markets. Bond market liquidity improved further after Indias inclusion in the JP Morgan Global Bond Index, while equity markets hit successive highs before moderating in H2 on global uncertainty and rupee weakness. OTC derivatives volumes stayed healthy, driven by interest rate and currency volatility and active RBI management. The RBIs rate-easing cycle, a cumulative 125 bps of cuts, improved liquidity and supported activity across the SLR and derivatives desks. GIFT City continued to grow as an offshore financial hub, with rising volumes in non-deliverable derivatives as institutional participation deepened.

(ii) Opportunities

The shift by Indian corporates from bank-based to market-based financing is a growth opportunity for the Non-SLR (Corporate Bond) desk, with volumes expected to keep expanding as the credit market matures. GIFT Citys growing regulatory framework opens avenues for competitive derivative products, cross-border treasury solutions and institutional mandates. Rising demand from mid-cap corporates and MSMEs for structured hedging is an underserved segment suited to the Companys OTC expertise, and technology is creating scope for efficiency gains across desks.

(iii) Performance

The Forex Desk held its market share in OTC forex derivatives. Government Securities (SLR) Desk delivered higher volumes, better market share and brokerage income growth over the prior year, helped by stronger bond market liquidity after Indias global index inclusion. Non-SLR (Corporate Bond) Desk grew revenue by approximately 30% in FY 2025-26, supported by record commercial paper placements and higher secondary market turnover, with further market share gains expected in FY 2026-27. The Derivatives Desk grew revenue 37% year-on-year, driven by active RBI management of USD/INR and strong market flows. GIFT City continued with client onboarding to build up a healthy pipeline. Services income remained broadly stable year-on-year, with volume increases across the SLR, Non-SLR and Derivatives desks partially offsetting spread compression in certain product lines. The GIFT City unit moved from setup to revenue-generating status during the year.

(iv) Risks and Concerns

Key risks include adverse changes to OTC market regulations or margining rules, shifts in global capital flows or risk-off sentiment, growing competition from electronic trading platforms in vanilla OTC products, and cybersecurity and operational continuity risks. The evolving GIFT City framework, while an opportunity, also brings compliance obligations that need active management.

(v) Outlook

The Forex Desk expects continued INR volatility from elevated crude oil prices and global trade tensions. The Non-SLR desk expects strong revenue growth in FY 2026-27 as market share gains continue and corporates shift further toward market-based financing. At GIFT City, the focus will be on onboarding institutional clients, launching new product verticals and scaling analytics to capture long-term growth in non-deliverable and cross-border derivatives.

Investment and Credit

The company actively participates in opportunistic special situations where we provide companies with structured debt and equity solutions to unlock debt capacity and support growth initiatives. We seek compelling investments in leading companies that typically have not maximized their growth potential. We invest our capital in a variety of structures, depending on the needs of a company or a particular transaction.

At Crest, we believe in investing and partnering with passionate founders and world-class teams who are solving interesting and challenging real-world problems. We play an active role in helping them realize their untapped growth potential by providing them with access to business development opportunities, industry experts, leading technologies and established processes.

The Companys investment and credit portfolio consists of early-stage and mature businesses across private and public markets. We evaluate and invest in companies with high growth potential with a clear strategy and ability to execute. Crest is committed to building value in these businesses by establishing synergistic partnerships and effective resource allocation.

(i) Industry Structure and Developments

Indias private capital ecosystem continued its rebound in FY 2025-26, with QIPs, IPOs and structured exits maintaining healthy momentum. Structured credit became a preferred instrument across real estate, infrastructure and asset-light businesses seeking flexible financing. In real estate, private credit gained further traction as developers turned to alternative sources for land acquisition, construction capital and last-mile funding, driven by cautious bank lending, faster execution needs and investor appetite for secured, asset-backed yield instruments. Listed equities were buoyant through H1-FY26 before moderating in H2 as global uncertainty, crude prices and rupee weakness introduced caution.

(ii) Opportunities

There is room to expand the structured credit portfolio through real estate-backed senior lending, focused on transactions with strong collateral, credible sponsors and clear exit timelines. The steady pipeline of redevelopment projects in high-demand Mumbai micro-markets is a natural source of deal flow aligned with the Companys sector expertise. In public equities, the focus on real estate and financial services continues to offer selective opportunities, while consumer sectors such as agri-food, wellness and travel present further avenues for private portfolio diversification.

(iii) Performance

1. Credit-Linked Real Estate Portfolio

The Company recorded healthy growth in its credit-linked real estate portfolio in FY 2025-26, deploying selectively into well-structured, asset-backed opportunities with strong sponsors. Capital went mainly toward financing last-mile completions and redevelopment in high-demand micro-markets, backed by strong security cover and clear exit timelines. These investments delivered steady yields, exceeding internal benchmarks, while strengthening relationships with established developers and building a pipeline for future transactions.

2. TBOF Foods Private Limited

TBOF Foods Private Limited (TBOF), a direct-to-consumer organic agri-food company, continued to build on its Series A funding round, deploying capital toward channel expansion, product innovation and scaling operations. The brand has established itself as a category leader in premium D2C organic food, known for its cultured Desi Gir cow ghee, Khapli atta and wellness products. TBOF has trained over 15,000 farmers in sustainable organic farming and continues to expand distribution across domestic and international channels. The Company holds an 11.89% stake in TBOF as of March 31, 2026.

3. Tamarind Global Services Private Limited

Tamarind Global Services Private Limited (Tamarind Global), a destination and event management company across Tours, MICE, Events and Online verticals, sustained its recovery to pre-COVID scale in FY 2025-26. The business delivered strong cash flow, driven by demand for destination events, corporate MICE activity and inbound and outbound travel. With a stake of over 22.39%, the Company is well placed to participate in Tamarind Globals planned expansion into new geographies and service lines.

(iv) Risks and Concerns

Key risks include asset concentration and borrower-specific exposure in the structured credit portfolio; adverse regulatory changes such as tighter NBFC underwriting norms, revised FDI rules or margining requirements; delays in exit cycles due to market timing or liquidity constraints; and equity market volatility affecting the public equities portfolios mark-to-market value.

(v) Outlook

The Company will continue selective growth in real estate-backed senior lending, prioritising opportunities with strong collateral, credible sponsors and clear exit timelines to protect capital while delivering stable returns. For the private portfolio, the Company is well placed to participate in the next growth phase of both TBOF and Tamarind Global, with active portfolio governance expected to strengthen returns over the long term.

INTERNAL CONTROLS

The Companys internal control systems commensurate with the nature, scale and complexity of its operations. Standard operating procedures govern the orderly conduct of business, including adherence to policy, safeguarding of assets, prevention and detection of fraud and errors, accurate accounting records, and timely financial disclosures. ERP-driven project control systems, scaled up over the past two years, give real-time oversight of project budgets, cost variances and procurement commitments, allowing timely escalation and corrective action.

To fulfil the requirements of the Companies Act, 2013, and applicable SEBI regulations, the internal control systems are supplemented by internal audits carried out by independent firm of Chartered Accountants. The internal audit function reviews the adequacy and effectiveness of internal controls for prevention, detection, reporting and remediation of fraud. The governance architecture is further reinforced by structured compliance review processes covering RERA obligations, SEBI Listing Obligations and Disclosure Requirements, RBI regulations, applicable taxation frameworks and standardisation of key processes across the real estate and financial services operations. During FY 2025-26, the Company continued to strengthen its investment committee protocols and legal-structuring diligence, particularly for its growing structured credit portfolio. Real-time performance monitoring, centralised compliance dashboards and scenario analysis against market and geopolitical stress remain part of the Companys risk management framework. Significant audit observations and follow-up actions are reported to the Audit Committee, which reviews the adequacy of the internal control environment and monitors implementation of audit recommendations. On review of internal audit observations, the Company confirms there are no adverse observations with a material impact on its financials or operations.

HUMAN RESOURCES

The Company remains committed to building a high-performance organisation grounded in collaboration, disciplined execution and accountability, values that matter in managing a complex, multi-project real estate portfolio alongside an established financial services business. Diversity, inclusion and merit-based advancement continue to guide the Companys approach to people management.

FY 2025-26 was a year of continued talent building. HR focused on strengthening specialist and leadership capability in the real estate vertical, to manage a portfolio that now spans new launches, early-stage redevelopment projects and upcoming pipeline developments. Hiring continued at senior and mid-management levels across project management, sales, design, legal and liaison functions.

Full deployment of ERP and project management systems has improved efficiency and coordination across execution teams. The Company continues to invest in performance-linked compensation, learning and leadership development to sustain a culture of engagement and accountability.

As of March 31, 2026, Crest Group, including its subsidiaries, comprised 206 employees, including the Managing Director. The Company regards its people as its most significant competitive asset and remains committed to attracting, developing and retaining talent of the highest calibre.

Financial Performance Overview

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

1. Key Financial ratio analysis

A summary of the key financial ratios, along with details of significant changes and detailed explanations therefor, as required under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015:

Ratios	FY 2025-26	FY 2024-25	Remarks
Price to Book Value	0.70	0.88
Price to Earnings	19.56	11.92
Return on Assets	2.49%	6.35%	Mainly attributable to fair value adjustments in the investment portfolio
Return on Equity	3.66%	7.55%	Mainly attributable to fair value adjustments in the investment portfolio
Debt to Equity	0.21	0.14
Total Debt to Total Assets	0.15	0.11
Interest Coverage Ratio	4.24	6.36	Mainly attributable to fair value adjustments in the investment portfolio
Net Profit Margin	30.06%	44.09%	Mainly attributable to fair value adjustments in the investment portfolio
Capital Adequacy Ratio* (*on a standalone basis)	64.40%	75.39%

The Company operates across diversified segments, primarily real estate and financial services, each with distinct business models and financial characteristics. This creates differences in capital deployment, revenue recognition and operating cycles across the segments.

2. Balance sheet analysis

A comparative table showing synopsis of Balance sheet as at March 31, 2026, as compared to March 31, 2025:

Consolidated Balance Sheet	As at March 31, 2026	As at March 31, 2025	% Increase / (Decrease)
Assets
Financial Assets	1,22,753.44	1,20,457.94	1.91%
Non-Financial Assets	69,768.42	21,655.97	222.17%
Total	1,92,521.86	1,42,113.91	35.47%
Liabilities and Equity
Liabilities
Financial Liabilities	31,188.76	18,732.59	66.49%
Non-Financial Liabilities	28,033.05	1,418.54	1876.19%
Sub-Total	59,221.81	20,151.13	193.89%
Equity
Equity attributable to Owners of the Company	1,30,703.25	1,19,480.99	9.39%
Non Controlling Interest	2,596.80	2,481.79	4.63%
Sub-Total	1,33,300.05	1,21,962.78	9.30%
Total	1,92,521.86	1,42,113.91	35.47%

The increase in Non-Financial Assets as well as Non-Financial Liabilities are attributable mainly to Real Estate segment and reflects progress of projects and commitments related to the same. Increase in Financial Liabilities reflects financing aspect of this growth.

3. Profit and Loss analysis

A comparative table showing synopsis of Profit and Loss for FY 2025-26 as compared to FY 2024-25:

Consolidated Profit and Loss	For The Year Ended March 31,		% Increase / (Decrease)
	2026	2025
Revenue
Revenue from Operations	15,914.16	20,428.60	-22.10%
Other Income	8.87	23.60	-62.42%
Total	15,923.03	20,452.20	-22.15%
Expenses
Employee Benefits Expense	3,202.15	2,441.66	31.15%
Other Expenses	3,735.73	4,263.70	-12.38%
Finance Costs	2,006.03	2,073.98	-3.28%
Depreciation and Amortisation	525.50	425.05	23.63%
Total	9,469.41	9,204.39	2.88%
Add: Share of Profit / (Loss) from Associates	45.73	-134.94	-133.89%
Profit Before Tax	6,499.35	11,112.87	-41.52%
Profit After Tax (A)	4,787.04	9,017.17	-46.91%
Earnings per Share (face value per share Rs. 10):
Basic (In Rs.)	16.61	31.39	-47.08%
Diluted (In Rs.)	16.46	31.11	-47.08%

The decline in revenue is mainly attributable to fair value adjustments in the investment portfolio, which has consequently impacted profit before and after tax as well as earnings per share. Employee benefit expenses reflect impact of deepening talent pool. Other expenses carry impact of increase in Marketing and Professional fees. However, there is a net decline in other expenses to a larger extent on account of changes in Real Estate Project-related expenses, which may not be exactly comparable owing to project milestones and longer operating cycles.

4. Cash Flow analysis

A comparative table showing synopsis of Cash Flow for FY 2025-26 as compared to FY 2024-25:

Consolidated Cash Flow	For The Year Ended March 31,
	2026	2025
Cash And Cash Equivalents At The Beginning Of The Year	5,641.46	9,569.56
Net Cash Generated From / (Used In) Operating Activities	4,615.08	-1,414.95
Net Cash Generated From / (Used In) Investing Activities	-8,521.16	2,763.14
Net Cash Generated From / (Used In) Financing Activities	10,882.96	-5,271.50
Net impact of Acquisition / Disposal of Subsidiary and Foreign Exchange Translation	283.77	-4.79
Cash And Cash Equivalents At The End Of The Year	12,902.11	5,641.46

Excluding the effect of fair value adjustments in the investment portfolio, the operating profit component remained stable. Working capital adjustments relating mainly to the real estate business, considering project milestones, had a minimal impact year-on-year. As a result, operating activities were a net cash contributor in FY 2025-26. Cash used in investing activities reflects operations in Investment and Credit business discussed above. Cash raised through financing activities to meet development requirements across all business segments of the Company/Group reflects adequate maintenance of capital and liquidity. The funds are held in current accounts and linked sweep in Fixed deposits.

CAUTIONARY STATEMENT

Statements in this Annual Report, particularly those that relate to Management Discussion and Analysis, describing the Companys objectives, projections, outlook, expectations and estimates may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied in such statements. Although these expectations and projections are based on reasonable assumptions, several factors - including economic conditions, government regulations, taxation, natural calamity, currency rate changes, and geopolitical developments - over which the Company has no direct control, could make a significant difference to the Companys operations and results. Readers are accordingly cautioned not to place undue reliance on forward-looking statements.