Crest Ventures Ltd Management Discussions

Global Economy

From April, 2024 to March, 2025, the global economy maintained a phase of moderated but stable growth, with the International Monetary Fund ("IMF") projecting expansion of around 3.2% in 2024 and 3.3% in 2025. While resilience has been observed, structural headwinds continue to weigh on momentum. Geopolitical tensions in Eastern Europe and the Middle East have kept energy and shipping markets volatile, particularly due to disruptions in Red Sea trade routes. At the same time, geoeconomic fragmentation, reflected in rising protectionism, technology bifurcation, and realignment of supply chains toward regional hubs, is reshaping global trade. Inflation eased closer to central bank targets, falling from 5.9% in 2024 toward 4.5% in 2025, helped by earlier monetary tightening, stable energy prices, and moderating demand. However, risks remain from renewed supply shocks in food, energy, and critical minerals. As inflationary pressures soften, major central banks are expected to gradually shift toward easing cycles in 2025, while fiscal consolidation in advanced economies could constrain stimulus-driven growth. The medium-term outlook is also influenced by accelerated adoption of AI and automation, which are enhancing productivity in advanced economies but widening inequalities in emerging markets. Similarly, the global energy transition is driving long-term investment in renewables, even as short-term volatility persists in commodity markets. Overall, the global economy in FY 2024?€“25 reflects a low-growth but stable environment, underscored by vulnerability to shocks but supported by structural investments in technology and energy transitions.

Indian Economy

In contrast, the Indian economy continued to outperform global peers during FY 2024?€“25, with GDP growth estimated at 6.4?€“6.5%. This expansion was propelled by robust public investment in infrastructure, resilient private consumption, and steady growth in the services sector. Government-led capital expenditure on transport, renewable energy, and industrial corridors encouraged private sector participation, while urban demand for housing, automobiles, and services expanded alongside rising incomes and greater formalization of the workforce. The digital economy played an increasingly central role, supported by public platforms such as UPI, ONDC, and the Account Aggregator framework, which boosted financial inclusion, e-commerce, and fintech adoption. Services exports, particularly IT/ ITES, consulting, and professional services, remained strong, underpinned by Indias skilled workforce and competitive cost base. On the macroeconomic front, inflation cooled to 3.34% in March 2025, driven by moderating core inflation and lower fuel prices, though food price volatility remained a challenge. The rupee traded in a stable range of 82?€“84 per U.S. dollar, while foreign exchange reserves reached record highs, covering over 11 months of projected imports and exceeding external debt obligations. Continued reforms, including simplification under GST, stable taxation, and production-linked incentives for manufacturing and EVs, bolstered investor sentiment. At the same time, demographic trends and urban migration sustained strong demand for real estate and rental housing, key to Indias urban growth story. Nevertheless, challenges such as elevated youth unemployment, agricultural dependence on monsoons, and exposure to global slowdown risks persisted. Despite these headwinds, Indias combination of macroeconomic stability, digital transformation, and investment-driven growth positioned it firmly on a 6?€“7% medium-term growth trajectory, consolidating its role as a major driver of global economic expansion.

Real Estate

(i) Industry Structure and Developments

The Indian real estate market saw accelerated growth in FY 2024?€“25, with the residential sector leading the charge. The year under review under review saw record housing sales in metro cities and a growing appetite for premium and luxury offerings. Indias real estate sector is also benefiting from improved transparency due to RERA and GST, while increased capital flows from REITs, institutional investors, and NBFCs are enhancing liquidity and funding options. Smart cities, infrastructure expansion, and the digital economy are further catalyzing sectoral transformation.

Mumbais residential real estate market saw strong, broad-based demand in FY 2024?€“25, with consistent absorption across mid-income, premium, and luxury segments. Mumbai, in particular, remained a focal point, with micro-markets witnessing double-digit growth in both price and volume, driven by a mix of end-user demand and limited new supply. Homebuyers displayed a clear preference for near-completion or OC-stage inventory, driving strong sales in well-executed projects with visible progress and legal clarity. The Western suburbs and core central zones remained key demand hubs owing to their connectivity, social infrastructure, and aspirational positioning. In the premium segment, redevelopment projects in legacy neighbourhoods significantly outperformed, attracting discerning end-users seeking modern, boutique offerings in familiar locations. Buyers were also willing to stretch their ticket sizes in pursuit of larger units, better layouts, and comprehensive lifestyle amenities. Developer brand, digital presence, and execution credibility emerged as key differentiators, with institutional-grade developers achieving superior velocity and pricing across active launches.

(ii) Opportunities

Mumbais older precincts present significant potential for broadening the redevelopment pipeline, particularly as urban migration trends continue to drive demand across both luxury and mid-income housing segments. Government-led infrastructure investments are unlocking new residential and commercial growth corridors, creating opportunities to strategically position projects for maximum value. By forging alliances with landowners and co-developers, these opportunities can be accelerated, enabling faster acquisition, execution, and delivery in high-demand markets.

(iii) Segment-wise Performance

Crest Ventures has consistently delivered value across its real estate portfolio:

1. Crest Oaks ?€“ Andheri (East), Mumbai

Crest Oaks is a mid-premium residential development in Marol, Andheri (East), a key transit and commercial hub of Mumbai with strong connectivity via metro, airport, and arterial highways. The neighbourhoods strategic location continues to attract professionals from SEEPZ, MIDC, and the Western suburbs. Sales have been encouraging, significant portion of inventory sold shortly after launch, reflecting market confidence in both the location and the product offering. Execution on-site is progressing at a steady pace, with the structure advancing as per schedule and a well-coordinated contracting setup ensuring control on timelines and quality.

2. Crest Link ?€“Khar (West), Mumbai

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. On the commercial side, several spaces have already been leased to marquee tenants in fashion and jewellery ensuring strong long-term rental income. Part Occupancy Certificate (OC) has been received, with full OC expected by October 2025. 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.

3. Crest Parkview ?€“ Bandra (West), Mumbai

Located in Bandra (West), one of Mumbais most exclusive and aspirational neighbourhoods, Crest Parkview offers a rare combination of new-age living in a heritage-rich urban setting. The project benefited from strong sales during construction, with a buyer profile of professionals and affluent families upgrading within Bandra. It has now been delivered with all requisite occupancy certifications.

4. One National Park ?€“ Velachery, Chennai

One National Park is a Grade A commercial development located in Velachery, in a high-potential growth corridor of Chennai with excellent access to the airport, arterial roads, and metro connectivity. The project has been completed with over 6 lakh sq. ft. of leasable area, has already attracted strong tenant interest, and is expected to begin contributing to annuity income from H2 FY 2025?€“26, subject to receipt of the occupancy certificate. Positioned as a high-quality office asset, execution has been efficient and on schedule, aligning with global standards for institutional office developments. Active leasing discussions are ongoing with IT, consulting, and co-working firms, all drawn to the assets specifications and strategic location. The Company holds a 50% stake in the SPV, Starboard Hotels Private Limited, which has developed the project in partnership with The Phoenix Mills Limited.

5. Crest Greens Phase 2 & 3 ?€“ Raipur

Crest Greens Phase 2 & 3 is a large-format township development in suburban Raipur. Phase 2 is planned to offer plotted layouts, and Phase 3 will comprise a multi-storeyed residential tower, with the combined planned development across both phases exceeding 6 lakh sq. ft.

The area is seeing steady urban expansion, and early buyers have shown confidence in the brands long-term vision and success in Phase 1. Sales in the plotting segment are active, with interest from both end-users and investors. Execution has focused on building robust lifestyle infrastructure?€”internal roads, landscape zones, and community amenities?€”ensuring the site evolves as a self-sustained living ecosystem over phases. The Company owns a 50.01% stake in Ramayana Realtors Private Limited, which is developing the project.

6. Crest Park ?€“ Bani Park, Jaipur

Crest Park is located in Bani Park, one of Jaipurs most prestigious and centrally located residential neighbourhoods, known for its heritage charm, tree-lined avenues, and proximity to Civil Lines, the railway station, and the citys key administrative areas. The project is a premium plotted development aimed at discerning end-users seeking land in a prime, low-supply micro-market. Sales have been very good, with strong uptake from both local HNIs and NRIs, driven by the projects brand strength, clear title, and superior planning. The initial civil infrastructure roadworks, sewerage, and landscaping has been completed, and Phase 1 handovers remain on track, reinforcing buyer confidence and project momentum.

7. Crest 4 Pali Hill ?€“ Bandra (West), Mumbai

Crest 4 Pali Hill is a flagship ultra-luxury residential project located in Pali Hill, Bandra (West), one of Mumbais most exclusive and storied neighbourhoods, known for its green cover, heritage bungalows, and celebrity residents. The project sits on a rare, high-value land parcel in a tightly regulated low-rise precinct. With pre-development approvals in place and land possession secured in May 2025, the project has now completed demolition and commenced piling work, marking the official start of construction. Pre-launch buzz has been strong, with interest from UHNI buyers and families. The project is being executed with iconic design, premium amenities, and a strong emphasis on exclusivity.

8. Crest Uno ?€“ Bandra (West), Mumbai

The Company has been appointed as the preferred development partner for a boutique redevelopment project in Union Park, Bandra (West), one of Mumbais aspirational and culturally vibrant neighbourhoods. Located in an upscale neighbourhood, the site enjoys proximity to premium retail outlets, fine-dining destinations, educational institutions, and arterial roads that ensure excellent citywide connectivity. Branded as Crest Uno, it is poised to become a curated residential offering in a high-demand, low-supply micro-market. The project is on the verge of receiving key approvals, and construction work is expected to commence shortly.

9. Crest Legacy ?€“ Dadar (East), Mumbai

During the year, the Company secured full ownership and control of a strategically located land parcel in Dadar (East), Mumbai, now named Crest Legacy (working title). Positioned at the heart of Mumbais central corridor, the site benefits from exceptional connectivity, robust social infrastructure, and consistent demand from both end-users and investors. Crest Legacy presents a significant opportunity for cluster redevelopment, aligned with Mumbais progressive urban renewal policies. The project is poised to become a flagship addition to the Companys residential portfolio. Pre-construction activities are underway, including architectural planning, feasibility assessments, and regulatory groundwork. In parallel, negotiations with neighbouring societies are in progress to expand the project footprint and optimise the development potential. With clear title, full control, and a compelling location, Crest Legacy is positioned to emerge as a transformative urban development in the Dadar skyline, reflecting the Companys commitment to thoughtful, high-impact city-building.

(iv) Risks and Concerns

Localised oversupply in certain micro-markets could create pricing pressure and extend sales cycles, particularly for offerings that lack differentiation. Rising input costs, especially in raw materials and labour, coupled with broader inflationary pressures, may compress project margins if not offset through pricing power or cost control. Regulatory and approval delays, including environmental clearances and litigation risks in redevelopment projects, threaten timely launches and execution. Geopolitical tensions and macroeconomic volatility could dampen buyer sentiment?€”especially in discretionary or premium housing?€”while interest rate fluctuations may further impact housing loan affordability.

(v) Financial and Operational Performance

The Company delivered a steady performance during the period, underpinned by prudent capital management, disciplined execution, and a focus on value-accretive opportunities. Operationally, significant progress was made across key projects, with milestones achieved in both ongoing developments and newly initiated ventures. A robust pipeline has been built, which is expected to start reflecting in the near term through project completions and lease commencements, thereby contributing meaningfully to the topline and driving sustainable growth.

(vi) Outlook

With a development pipeline of over 1.2 million sq. ft. underway, the Company is well-positioned to drive scalable growth. Timely execution will be critical to capturing market opportunities, while project location will remain a key determinant of value creation. The Company will maintain a strong focus on financial prudence and disciplined capital allocation, even as it expands its footprint through joint development agreements, fee-based models, and strategic city-level partnerships. At the same time, we remain cautious about excess inventory and potential oversupply in certain micro-markets, ensuring our approach stays measured and market-responsive.

Financial Services, Investment & Credit

Financial Services

(i) Industry Structure and Developments

FY 2024?€“25 was a pivotal year for Indias capital and derivatives markets. Bond market liquidity improved following Indias inclusion in global indices, while equity markets reached all-time highs. Corporate demand for structured risk solutions surged amid volatile interest rate and FX environments. GIFT City emerged as a credible offshore hub for global financial flows.

Digital transformation, algorithmic trading, and regulatory clarity further expanded market access, particularly in interest rate and currency derivatives. The OTC broking ecosystem continued to evolve, with pricing pressures being offset by bespoke product offerings.

(ii) Opportunities

Opportunities are emerging from GIFT Citys evolving regulatory framework, which enables the launch of globally competitive products and platforms. Technology-led transformation in broking workflows and analytics is creating scope for enhanced efficiency, client engagement, and differentiated service delivery. In addition, rising demand from MSMEs and mid-cap companies for effective hedging solutions presents a growing market for tailored risk management offerings.

(iii) Segment-wise Performance

In FY25, the Forex Desk operated in a highly volatile environment, with the INR weakening from 83.15 in April 2024 to 87.95 in February 2025, driven by global uncertainties including the Russia?€“Ukraine conflict, aggressive US Federal Reserve tightening, and fluctuating foreign capital flows. Additional pressures from geopolitical events, trade policy shifts, and interest rate differentials between the US and India influenced currency valuations, while sustained central bank intervention kept forward volumes subdued despite yield movements between 1.50%?€“2.50%. The SLR (G-Sec) desk delivered a strong performance with improved volumes, market share, and brokerage compared to the previous year. The Non-SLR (Corporate Bond) desk achieved 25% revenue growth, supported by higher secondary market turnover and increased placement of primary commercial papers. The Derivatives Desk posted robust 38.15% year-on-year growth, benefiting from active RBI management of USD/INR, global and domestic rate cuts, and strong market flows. At GIFT City, the business commenced client onboarding and built a healthy pipeline, with strategic positioning under the IFSC framework expected to drive significant long-term growth across treasury, derivatives, and global access platforms.

(iv) Risks and Concerns

Key risks include potential adverse regulatory changes, such as revisions to margining rules, and shifts in global capital flows or liquidity that could impact market activity. Narrowing spreads and intensifying competition in vanilla products may pressure profitability, while cybersecurity threats and operational continuity challenges remain ongoing areas of vigilance.

(v) Financial and Operational Performance

Services income remained steady year-on-year, with margin compression offset by volume increases. Operational performance is expected to improve through planned system enhancements and process digitization initiatives

(vi) Outlook

The outlook for the Forex Desk suggests further INR weakness, influenced by looming US tariffs and the risk of capital outflows from Asian economies amid escalating US?€“China trade tensions. In the Non-SLR (Corporate Bond) segment, Indian corporates raised a record 9.9 lakh crore in FY25?€”a 15% increase over the previous year?€”reflecting a continued shift from traditional bank borrowings toward market-based financing. With anticipated market share gains, the desk projects revenue growth of around 40% in the coming year. For the Derivatives Desk, the rollout of an electronic trading system for the Modified MIFOR by CCIL, combined with persistent global uncertainties, is expected to temper activity, leading to a conservative revenue outlook of flat to 10% growth. At GIFT City, with macroeconomic headwinds easing and the platform gaining market traction, the focus in FY26 will be on scaling analytics capabilities, onboarding institutional clients, and launching new product verticals to capture long-term growth opportunities.

Investment and Credit

(i) Industry Structure and Developments

Indias private capital ecosystem rebounded, with QIPs, IPOs, and structured exits dominating PE/VC flows. Structured credit emerged as a preferred instrument, particularly for real estate and asset-light businesses seeking flexible working capital solutions. In the real estate sector, private credit continues to gain traction as developers increasingly turn to alternative financing for land acquisition, last-mile project completion, and bridging capital gaps in redevelopment projects. This trend is supported by a cautious banking environment, the need for faster execution timelines, and investor appetite for secured, high-yield opportunities backed by tangible assets.

(ii) Opportunities

Opportunities exist to expand in real estate-backed senior lending, focusing on well-structured transactions with strong collateral coverage and clear cash flow visibility to ensure downside protection. In parallel, consumer-driven sectors such as agri-food, wellness, and tourism present attractive growth potential, supported by rising disposable incomes, evolving lifestyle preferences, and sustained demand momentum.

(iii) Segment-wise Performance

The Company recorded healthy growth in its credit-linked real estate portfolio during the year, driven by selective deployment into well-structured, asset-backed opportunities with strong sponsor credentials. Capital was strategically allocated to projects offering robust security cover, clear cash flow visibility, and well-defined exit timelines. The focus remained on financing last-mile completions in high-demand micro-markets and funding redevelopment opportunities with favourable regulatory clearances. These investments not only delivered steady yields but also strengthened the Companys strategic relationships with established developers, building a strong pipeline for future deals.

Thematic Public Equities ?€“ Real Estate and Financial Services

The Company maintained a focused public equities portfolio in real estate and financial services, targeting fundamentally strong businesses with healthy balance sheets, cash flow visibility, and sector tailwinds. Active monitoring and timely rebalancing helped capture market opportunities while ensuring disciplined risk management.

TBOF Foods Private Limited ("TBOF")

TBOF experienced a significant acceleration in its growth trajectory during FY 2024?€“25, marked by the successful closure of its Series A funding round. The capital infusion from strategic investors validated the brands strength and differentiated positioning in the premium foods segment, while enabling the business to scale key verticals, expand distribution, and invest in brand-building initiatives. With over a 15% stake, the Company is well-placed to benefit from TBOFs next phase of growth, which will focus on channel expansion, product innovation, and operational scalability.

Tamarind Global Services Private Limited ("Tamarind Global")

Tamarind Global successfully returned to pre-COVID operational scale during FY 2024?€“25, driven by a resurgence in inbound and outbound travel, destination events, and corporate MICE activity. The business not only recovered lost ground but also achieved incremental growth beyond pre-pandemic levels, supported by strong demand across its core verticals. Robust cash flow performance during the year reflected operational efficiency, disciplined cost management, and a healthy booking pipeline. With over a 23% stake, the Company is strategically positioned 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 exposures, as well as potential adverse regulatory changes?€”such as tightening in credit underwriting standards, revisions to NBFC norms, shifts in FDI rules, or changes to margining requirements?€”that could affect capital flows and market participation. Delays in exit cycles due to market timing challenges may impact returns and operational continuity risks remain ongoing areas of focus.

(v) Financial and Operational Performance

Structured credit returns exceeded benchmarks, and equity portfolio value was stable despite market volatility.

(vi) Outlook

The Company will continue to pursue selective growth in real estate-backed senior lending, prioritising opportunities with robust collateral, credible sponsors, and well-defined exit timelines to safeguard capital while delivering stable returns. Strategic capital deployment across these segments, supported by disciplined risk management and active portfolio monitoring, is expected to enhance returns and strengthen the Companys positioning for long-term value creation.

Internal Controls

We implemented robust ERP-driven project control systems to strengthen oversight across all operational and financial dimensions. These systems not only ensure stringent cost discipline by monitoring budgets, expenditures, and variances in real time, but also provide a framework for timely escalation of issues to senior management, thereby preventing cost overruns and project delays. In parallel, the governance framework has been fortified through independent audits, which validate compliance and financial integrity; compliance reviews, which ensure adherence to evolving regulatory requirements; and workflow automation tools, which standardize processes, minimize manual intervention, and improve operational accuracy.

The business continues to place governance and risk management at the core of its functioning, adopting a multi-layered approach supported by:

?€? Centralized compliance dashboards, enabling real-time tracking of statutory and regulatory obligations with consolidated visibility for management;

?€? Comprehensive management system audits, which assess and reinforce the effectiveness of policies, processes, and internal controls;

?€? Regular stress-testing and scenario analysis, undertaken to evaluate business resilience under market volatility, liquidity constraints, and geopolitical shifts; and

?€? Robust investment committee protocols, coupled with stringent legal structuring diligence and real-time performance monitoring systems, ensuring that investment decisions are prudent, legally sound, and continually benchmarked against defined risk-return parameters.

Through this integrated governance architecture, the company demonstrates its commitment to transparency, accountability, and sustainable value creation, while proactively mitigating risks in an increasingly dynamic business environment.

Human Resources

The Company is committed to building a future-ready organization anchored in teamwork, innovation, and resilience?€”values that not only sustain growth but also unlock bold thinking and differentiated results. Our culture is firmly grounded in performance, collaboration, diversity & inclusion. Conscious inclusion remains a non-negotiable principle, shaping decision-making today while guiding the workplace of tomorrow.

The HR function has been at the forefront of this transformation, aligning people strategy with the Companys ambitious growth agenda in real estate. FY25 was a year of both of form and experimentation: we strengthened our leadership and specialist talent base to ensure the right capabilities are in place to execute the expanding project pipeline. In parallel, the full-scale adoption of advanced technologies, including ERP, streamlined operations and created a scalable foundation that enhances agility, efficiency, and greater value creation across the business.

At the core of our strategy is a simple belief: people are the catalysts of competitive advantage. To this end, we continue to invest in a high-performance, high engagement environment where employees feel empowered to grow and contribute. Progressive people practices ranging from psychologically safe teams to experiential learning and inclusive platforms are designed to build leadership depth, stimulate creativity, and strengthen adaptability at every level of the organization.

As we look ahead, the Company reaffirms its deep gratitude to its people?€”the true cornerstone of our progress. Their unwavering dedication, trust, and passion have been instrumental in achieving meaningful milestones and will remain the driving force behind our future growth and collective success.

As of March 31, 2025, Crest Group, including its subsidiaries, comprised 159 employees, including the Managing Director. This deliberate strengthening of our talent base reflects a disciplined and forward-looking approach to workforce planning, underscoring our commitment to sustainable growth and long-term strategic impact.

Cautionary Statement

This document contains statements that are forward-looking about expected future events and the financials of Crest. By their nature, forward-looking statements require our Company to make assumptions and are subject to inherent risks and uncertainties. There is a significant risk that the assumptions, predictions, and other forward-looking statements may not prove to be accurate. Readers are cautioned not to place undue reliance on forward-looking statements as several factors could cause assumptions, actual future results, and events to differ materially from those expressed in the forward-looking statements. Accordingly, this document is subject to the disclaimer and qualified in its entirety by the assumptions, qualifications and risk factors referred to in the Management Discussion and Analysis section of this Annual Report .