Emerald Leisures Ltd Management Discussions

YOUR DIRECTORS ARE PLEASED TO PRESENT THE MANAGEMENT DISCUSSION AND ANALYSIS REPORT FOR THE YEAR ENDED 31ST MARCH, 2026.

The Management Discussion and Analysis have been included in consonance with the Code of Corporate Governance as approved by the Securities and Exchange Board of India (SEBI). Investors are cautioned that these discussions contain certain forward-looking statements that involve risk and uncertainties including those risks which are inherent in the Companys growth and strategy. The company undertakes no obligation to publicly update or revise any of the opinions or forward-looking statements expressed in this report consequent to new information or developments, events or otherwise.

The management of the company is presenting herein the overview, opportunities and threats, initiatives by the Company and overall strategy of the company and its outlook for the future. This outlook is based on managements own assessment and it may vary due to future economic and other future developments in the country.

The operational performance and future outlook of the business have been reviewed by the management based on current resources and future development of the Company.

GLOBAL ECONOMY

The Global Economy displayed reasonably strong trends in FY 2026 despite different challenges like geopolitical tensions, reversal of FTA, currency volatility and energy crisis. Aided by moderate inflation (expected at 4.1% in 2025 vs. 5.8% in 2024) (Source: IMF, World Economic Outlook, April 13, 2026) global GDP is expected to grow by 3.4% in 2025 (2024: 3.3%) with steady growth in major emerging markets and moderate expansion in advanced economies. As China showed signs of stabilizing and other Asian economies like India showed sustained strong domestic demand and investment, emerging market economies and developing economies remained the principal drivers of global growth. Major investment thrust in sectors like artificial intelligence, digital infrastructure, and data centres continued the capital expenditure trajectory. Household consumption remained firmer than anticipated, with notable resilience in the United States and key emerging markets, particularly India. Global trade flows continued to adjust to US-China frictions, with other economies such as Vietnam, Indonesia and Cambodia emerging as strong manufacturing and logistics hubs.

The Organisation for Economic Cooperation and Development (OECD) projects global growth to moderate to 2.9% in 2026 from 3.2% in 2025 as higher energy prices and the uncertain trajectory of the evolving West Asia conflict are expected to raise costs and soften demand, offsetting the momentum from

2025.

World merchandise trade volume growth, as projected by the World Trade Organisation (WTO), in March

2026. is expected to moderate to 1.9% in 2026 from 4.6 per cent in 2025, before improving to 2.6% in 2027. Services trade volume is expected to ease to 4.8% in 2026 from 5.3% in 2025, before recovering to 5.1% in

2027. (Source: World Trade Organization (WTO) Global Trade Outlook and Statistics report, March 2026).

Amid evolving geopolitical tensions in West Asia, global growth faces increased downside risks, due to inflationary pressures arising from elevated uncertainty, market volatility, persistent supply-chain disruptions, and monetary policy tightening. Disruptions to energy flows and damage to critical infrastructure have generated spillover effects across global supply chains and related commodities, contributing to increased financial market volatility, particularly in energy-dependent Asian economies. The extent to which productivity gains and rising investments in technology, including artificial intelligence, can offset these headwinds remains uncertain, placing the resilience of the global economy under close watch. Overall, the global outlook has shifted from the relatively steady conditions seen at the start of 2026 to a more cautious environment. Moving forward, the duration, intensity and geographical spread of the conflict in West Asia will remain a significant factor influencing global growth, inflation trends and financial stability.

INDIAN ECONOMIC

INDIA maintained its position as the fastest-growing major economy in 2025, with a nominal GDP estimated at $4.2 trillion., showing good resilience amidst volatile global environment marked by uneven growth, tight monetary conditions in advanced economies, commodity price upheavals and geopolitical developments. Indias GDP growth in FY2025-26 stood at 7.6% (FY2024 25: 7.1%), backed by continuity in policy changes, sustained capital expenditure by Government, private consumption, stable demand and steady performance across manufacturing and services. Inflation moderated during the year, with CPI inflation remaining broadly within the RBIs tolerance band (~4% ± 2%), aided by easing food prices. The Current Account Deficit (CAD) is expected to remain around ~0.8-1.0% of GDP in FY2025-26 (FY2024-25 ~0.6%) with some estimates indicating a possible widening amid trade tariff pressures and the prevailing geopolitical environment. (Source: Ministry of Finance, PIB - February 1, 2026; IMF World Economic Outlook report, April 2026). Overall, macroeconomic conditions remained supported by moderating inflation, prudent financial regulation, and continued improvements in banking system balance sheets.

Sectorally, Services remained the primary driver of economic growth, expanding by 8.7% in FY2025-26 (FY 2024-25: 7.8%) and contributing 55-60% of GVA, reflecting the increasing importance of modern, tradable, and digitally enabled services. Financial, real estate, and professional services recorded growth by 9.9%, while trade, hotels, transport, and communication services expanded by around 10.1%. In spite of increasing global trade uncertainties faced during the year due to US trade policy, imposition of new tariffs, etc., during FY 2025-26, Government implemented a range of structural and policy measures to support economic activity, broadening the tax base and strengthening Indias position in global trade by implementing GST rate rationalization, introduction of new Income-Tax Act 2025, signing FTA with UK & EU and enhanced focus of MAKE IN INDIA ( PLI) SCHEME to encourage manufacturing. These measures are expected to maintain revenue buoyancy, support domestic consumption and export competitiveness, while increasing competitive intensity in select sectors.

The Reserve Bank of India (RBI) implemented cumulative policy rate cuts of 125 bps and reduced the cash reserve ratio (CRR) from 4% to 3%, injecting approximately ?2.5 lakh crores of liquidity into the system. Additional support was provided through open market operations and forex swaps. Together,

these measures supported the transmission of lower lending rates, credit growth, and investment activity in the country.

Despite disruptions during the second half of FY2025 26, Indias financial position remained broadly stable. Tax collections were largely in line with expectations, the financial deficit remained within the glide path, and rating agencies acknowledged financial discipline through upgrades.

Going Forward, Indias economic outlook for FY2026-27 remains strong, with real GDP growth projected at approximately 6.9% and CPI inflation at around 4.6% (RBI). Growth is expected to be driven by strong domestic demand, sustained government capital expenditure, and ongoing structural reforms. (Source: RBI Monetary Policy Report, April 2026). While Services sector (mainly financial services & hospitality) will continue to be the torch bearer, Manufacturing sector under Make in India PLI scheme is expected to contribute higher. Monetary policy is likely to remain calibrated and data-dependent, with an ongoing focus on maintaining price stability. However crude oil prices and tariffs could influence the current account balance and imported inflation.

However, a major risk can be, expected slowdown in global trade growth in 2026 as compared with 2025, owing to persistent tariff-related uncertainties, the ongoing West Asia conflict, and elevated energy prices. These factors could weigh on private sector investment sentiment. The possible emergence of El Nino conditions may also pose a risk to growth and inflation dynamics. While external risks persist, Indias relative insulation from global shocks, along with its continued focus on infrastructure and digital transformation, provides a solid foundation for sustained economic expansion.

GLOBAL HOSPITALITY & TOURISM INDUSTRY

The global tourism industry reached a new post-pandemic peak in 2025, fully surpassing pre-COVID levels. According to the UNWTO Barometer (January 2026), international tourist arrivals are estimated to have reached 1.52 billion in 2025, representing a 4% increase over 2024 and reaffirming a return to longterm growth trends. Growth was supported by strong demand from large source markets, expanded air connectivity, and continued visa facilitation initiatives across destinations. Europe remained the most visited region with 4% Y-O-Y growth in arrivals, accounting for about 52% of global international arrivals, with 794 million visitors. The Americas recorded approximately 218 million international arrivals, reflecting 1% growth over 2024 and reaching 99% of 2019 levels. The Middle East continued to outperform pre-pandemic benchmarks, with international tourist arrivals exceeding 2019 levels by 39%, although growth over the previous year remained modest at 3%. The Asia-Pacific (APAC) region made significant progress claiming 22% share, recording 331 million international arrivals in 2025, recovering to 91% of pre pandemic levels.

The outlook for the year 2026 ahead remains characterized by measured optimism amidst persistent uncertainties. Geopolitical tensions in West Asia have impacted tourism activity across the region, driven primarily by heightened uncertainty and operational disruptions. These developments have weighed on traveller confidence and influenced destination preferences, resulting in some moderation in international

travel flows. The sector has repeatedly demonstrated resilience, rebounding strongly from far more severe disruptions in the past.

The global hospitality and tourism industry remains well poised for long-term growth, supported by stable employment markets, a healthy level of business activity and resilient leisure demand. The travel and tourism sector also continues to benefit from favourable structural drivers, supported by sustained demand for both business and leisure travel. Rising disposable incomes and the expansion of the middle class across emerging markets remain key demand catalysts. Travel demonstrated resilience as a discretionary spending category, while business travel demands remain strong.

INDIAN HOSPITALITY & TOURISM INDUSTRY - AN OVERVIEW

The Indian travel and tourism industry remained positive in FY2025-26, led by strong domestic leisure demand and improving corporate travel. Inbound travel also showed modest recovery. As per World Travel & Tourism Council (WTTC) Economic Impact of India Report 2025, the tourism sector accounted for an estimated 9.4% of total employment in India during FY2023-24 and contributed 6.6% to Indias GDP, underlining its significant role in supporting economic growth and employment generation. During calendar year 2025, India recorded 9.02 million foreign tourist arrivals and foreign exchange earnings of ?27,363.8 crores. Domestic tourist visits stood at 4,132.8 million during the same period. A facilitative visa regime remains a key enabler for inbound tourism. As of December 2025, Indias e-visa facility covered nationals of 172 countries, with entry permitted through 33 international airports, 16 seaports, and 2 land ports. (Source: Ministry of Tourism, Government of India, annual report 2025-26)

PERFORMANCE & OUTLOOK

Indian Hospitality witnessed improved occupancy level due to resilient leisure demand and improving corporate travel which helped sustain pricing momentum across ADR (Average Daily Revenue) and RevPAR (Revenue Per Available Room). The upcycle witnessed between FY2023-24 and FY2024-25 remained intact in 2025-26, with occupancy, ADR and RevPAR remaining at or above pre COVID levels. As per Horwath HTL, national occupancy stood at 64% in 2025 (2024: 63.0%), while ADR increased to ?8,624 (+8.5% Y-o-Y) and RevPAR rose to ?5,522 (+8.7% Y-o-Y).

Looking ahead, a structural demand-supply imbalance across key markets, coupled with improving infrastructure may support sustained occupancy levels and healthy pricing, including in select Tier 2 and 3 markets, subject to macroeconomic conditions and any event-related disruptions. (Source: Horwath HTL India Hotel Market Review 2025 report published in February 2026).

ICRA projects demand growth of 8-10% CAGR compared with supply growth of 5-6% during FY2025- FY2028. Supply additions are expected to remain measured due to higher land and construction costs, longer approval timelines and talent availability, which may continue to support occupancy and ADR levels. (Source: ICRA Report, November 10, 2025).

Strong Government Initiatives like Swadesh Darshan 2.0 and PRASHAD, major thrust for development of new destinations across select iconic sites, growing connectivity with enhanced infrastructure & initiatives

like RCS-UDAN, improved facilities at traditional pilgrimage centres are expected to contribute substantially in keeping the upcycle intact.

Further establishment of new airports and strengthening regional air connectivity through affordability measures and viability support, with 53 tourism routes operational to improve access to key and iconic tourist destinations, is expected to add to tourism momentum. (Source: Ministry of Tourism, Government of India, annual report 2025-26) Effective September 22, 2025, the GST rate on hotel rooms priced up to ?7,500 per day was reduced to 5% (without input tax credit), improving affordability, simplifying taxation, and supporting demand in the mid-scale and budget segments, despite the trade-off arising from the loss of input tax credit for businesses.

The Hospitality & Tourism Sectors performance in coming year shall depend on some of the key factors like the geopolitical environment, inbound travelers, domestic discretionary spending, increasing regional air connectivity to new destinations and corporate spend on MICE. Outlook on the hospitality sector is expected to remain stable in FY2026-27 with occupancy rate & room rates likely to remain firm. According to ICRA, industry revenues are projected to grow by ~7-9% Y-o-Y in FY2026-27, with occupancy and ARR continuing to improve.

OPPORTUNITIES & THREATS

OPPORTUNITIES

The Hospitality industry faces both significant opportunities and challenges. Opportunities are emerging out of

1. Increase in disposable incomes

2. Growth in leisure & wellness travel

3. MICE events and mega events by global artists

4. Improved connectivity from interiors to metro cities by road, rail and air

5. Medical tourism

THREATS:

The hotel industry is always under threat due to rapidly changing world. Faced with a diversearray challenges of hospitality industry has demonstrated strong resilience and capacity to evolve and thrive. By embracing innovative strategies, sustainability practices, and a commitment to guest well-being, it continues to provide exceptional experiences for travelers, promising a bright future amidst the present uncertainties that surround us.

The major threats perceived are:

1. Geopolitical tensions and instability

2. Travel plan embargos and disruptions

3. Cybersecurity concerns

4. Economic volatility & supply chain disruptions

5. Climate change & Environmental challenges

6. Pandemics and Regulatory changes

MITIGATION

It has been our constant endeavour to achieve excellence in customer delight and expand our reach through quality of service, amenities, food quality, new offerings and value-addition. We are working to identify and adopt new technologies and improve operational efficiencies. We are also working out strategies and plans to capture additional revenue streams to strengthen the cash flows. We undertake appropriate and timely repairs & maintenance to the assets to provide excellent hospitality experiences. We also have a continual risk management framework to ensure competitive advantages, business continuity & minimise adverse impact on business objectives

INTERNAL CONTROL SYSTEMS & ITS ADEQUACY

We have retained professionals who constantly evolve new measures & monitor that the set policies & procedures for internal control of operations and activities are followed diligently. Our procedures strive to ensure that all the assets are protected against loss from unauthorized use or disposition and all transactions are recorded and reported in conformity with Generally Accepted Accounting Principles. We ensure that maximum compliance of norms and regulations required by the regulatory authorities across various aspects of the business are achieved and implement rectifications immediately, wherever required. The Audit Committee periodically reviews the audit findings & recommends corrective action to the Board as and when required.

BUSINESS OVERVIEW

The Company operates out of its single standalone property located at Chembur, Mumbai. The Companys hospitality offerings are well-known by its service and Exclusive Multi-Cuisine Pure Vegetarian food at its restaurants and banquets which finds strong endorsement from its customers. The Company has successfully captured the increased business traffic buoyed by positive economic outlook and looks forward to strengthening it further. The Company consistently follows sustainable business practices, adopts energy and water saving measures, implements waste recycling and eco-friendly garbage disposal systems. The Company is also pro-actively looking to modernise and digitalise its routine operations by adopting AI and automation. The Company has continued to follow its growth targets in line with asset light expansion strategy.

FINANCIAL PERFORMANCE

For the FY 2025-26, Revenues from operations were Rs.1674.15 lakhs, up by 9.90% over FY 2024-25 and EBIT for FY 2025-26 was Rs. -852.17 lakhs as compared to Rs. -1079.84 lakhs for FY 2024-25. The Company registered good growth in business as economies opened up, travel restrictions were removed and pent- up demand for travel and celebrations got released. The Company has improved its operational efficiency.

REAL ESTATE SEGMENT PROGRESS

The Company has taken strong steps into establishment of new segment of business namely Real estate division. In the year 2025-26 the company has taken concrete measures and successfully activated the operations in this segment. The Company has received LOI from the regulatory authority for its Chembur project & the company is gearing up to kickstart the operations in coming months. The other project at Mahim is under consolidation phase and the company is confident that the project would be started in this financial year. Though there is no revenue from this segment for the year 2025-26, the Company is confident that the division will start showing results from FY 2026-27. The Company has made investments of Rs.35.61 Crores in this segment as on 31st March, 2026.

OUTLOOK & STRATEGY

Emerald Leisure Limited is confident of achieving higher growth in times to come and is laying down concrete plans for securing revenue growth from existing business as well as from new streams of business that it is exploring and successfully establishing. The strategic location of companys operations, strong goodwill, loyal work force coupled with Managements hands on & pro-active approach enhances the Companys ability to navigate evolving economic conditions with agility, resilience, and capitalise on the emerging opportunities over the medium to long term.

HEALTH & SAFETY

The Company consciously takes measure to ensure that all safety protocols and rules and regulations set by the regulatory authorities as regards fire, building safety, sanitation, COVID-19 protocols and garbage disposal are strongly adhered. We are committed to providing a safe and conducive work environment to our guests and people. Designing and implementation of Health & Safety protocols is one of the important items on agenda across all our decision-making processes.

FOOD SAFETY, HYGIENE AND CLEANLINESS

The Company ensures that there is constant monitoring and adherence to FSSAI guidelines and standards. Regular meetings and training sessions are conducted for our staff to apprise them of the importance of following the prescribed standards. The Company consistently endeavours to make use of newer technologies and processes for water recycling, waste management and garbage disposal.

HUMAN RESOURCES

The Company believes that our people are our greatest asset. Our loyal and skilled staffs enable us to withstand the challenges and grow in a highly competitive and dynamic industry. We strive to develop teams that are fully involved in their work and empower them to achieve new milestones in customer satisfaction and experience. They are constantly guided by the Companys philosophy of "A Service Approach To Growth". We recognize the criticality of human resource and ensure a conducive work environment that helps learning and growth of individuals that in turn will enable achieving the Organizational Objectives.

CAUTIONARY STATEMENT

Information in the management Discussion and Analysis describing the Companys projection, estimates, expectations or predictions, may be "forward looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ significantly from those expressed or implied in the statement. Important factors that would make a difference to the Companys operations include slowdown in Indias economic growth, inflation, war, change in Government Regulations, tax laws and other factors such as litigations and labour relations.

For and on behalf of the Board Emerald Leisures Limited
SD/-	SD/-
Rajesh Motilal Loya	Nikhil Vinod Mehta
Whole Time Director & CFO	CEO & Director
DIN: 00252470	DIN - 00252482
Date: 30.06.2026
Place: Mumbai