Future Market Networks Ltd Management Discussions

Indian Economy and Industry Outlook

The Indian economy demonstrated strong resilience and maintained its position as one of the fastest-growing major economies during the financial year 2025–26, notwithstanding continuing global uncertainties, geopolitical tensions, volatility in commodity prices, trade-related risks and uneven global economic growth. The domestic economy was supported by robust private consumption, sustained investment activity, improving business confidence, infrastructure development and the continued expansion of the services sector.

According to the Provisional Estimates released by the Ministry of Statistics and Programme Implementation (MoSPI) on 5 June 2026, Indias real Gross Domestic Product (GDP) is estimated to have grown by 7.7% in FY 2025–26, compared with 7.1% in FY 2024–25 under the revised national accounts series with base year 2022–23. Real GDP for FY 2025–26 is estimated at approximately ?323.12 lakh crore, while nominal GDP is estimated at approximately ?346.36 lakh crore, representing nominal growth of 8.9%. Real Gross Value Added (GVA) is estimated to have grown by 7.9%, reflecting broad-based economic activity.

Inflationary pressures moderated significantly during FY 2025–26, contributing to an improvement in real purchasing power and supporting domestic consumption. The Economic Survey 2025–26 noted a marked easing in headline inflation during the year, particularly on account of softer food prices and improved supply conditions. Retail inflation remained within the broader framework of price stability, although commodity prices, food prices and global developments continue to remain important factors for the economic outlook.

The services sector continues to be a key structural pillar of the Indian economy, contributing more than half of Indias Gross Value Added. According to the Economic Survey 2025–26, Indias services sector has demonstrated relatively stable and resilient growth and remains a major contributor to exports, employment and foreign investment. India has also strengthened its position as a global services provider, particularly in digitally deliverable, technology-enabled, knowledge-intensive and professional services.

Outlook

Looking ahead, the medium-term outlook for the Indian economy remains positive. The economy enters FY 2026–27 with strong domestic fundamentals, a relatively resilient financial system, continued infrastructure investment and a broadening services ecosystem. The Governments continued focus on infrastructure development, digitalisation, manufacturing, entrepreneurship and ease of doing business is expected to support investment and economic activity.

Nevertheless, the economic environment remains subject to external risks, including geopolitical developments, global trade policies, commodity-price volatility, exchange-rate movements, international interest rates and disruptions in global supply chains. Domestic risks relating to inflation, consumption patterns, employment conditions and sector-specific demand may also influence business performance.

Against this backdrop, Indias strong domestic demand, expanding services economy, increasing digital adoption and continued investment in infrastructure provide a favourable foundation for sustained economic growth. The Companys business outlook will accordingly remain closely linked to the growth of the Indian services economy, corporate spending, outsourcing trends and the increasing demand for specialised and technology-enabled commercial services.

Mall Management

Shopping malls continue to evolve as important components of Indias organised retail ecosystem, offering an integrated mix of retail, food and beverage, entertainment, leisure and experiential services. The mall industry has increasingly moved beyond the traditional shopping-led model towards experience-driven destinations, with emphasis on customer engagement, curated tenant mix, entertainment, dining and lifestyle offerings.

During FY 2025-26, the Indian retail real estate sector demonstrated strong resilience and continued expansion, supported by sustained domestic consumption, increasing retailer confidence and growing demand for high-quality retail spaces. According to CBRE Research, retail leasing across India reached a record approximately 8.9 million sq. ft. during calendar year 2025, while approximately 4.3 million sq. ft. of new retail supply was added during the year. The strong leasing activity reflected a shift towards quality-led and experience-oriented retail formats.

The demand environment remained favourable during the first half of FY 2026-27 as well. Retail space take-up reached approximately 3.9 million sq. ft. during January–June 2026, representing a 20% year-on-year increase over H1 2025. Delhi-NCR, Chennai and Mumbai were among the leading markets, collectively accounting for approximately 66% of the total retail leasing activity during the period.

Within the mall and organised retail segment, fashion and apparel, food and beverage (F&B), entertainment and jewellery continued to be important demand drivers. Fashion and apparel accounted for approximately 48% of retail leasing during 2025, while F&B accounted for approximately 12%. Entertainment and experiential offerings are also gaining importance as mall operators seek to increase customer footfall, dwell time and repeat visits.

Another significant trend has been the increasing physical presence of direct-to-consumer (D2C) brands. D2C brands accounted for approximately 27% of retail leasing in 2025, reflecting the growing importance of an omnichannel strategy in which digitally native brands use physical stores to enhance brand visibility, customer engagement and experiential retail. During H1 2026, D2C brands increased their share further to approximately 28% of overall retail leasing activity.

The mall management industry is therefore witnessing a transition from conventional space-management and leasing models towards integrated asset and customer-experience management. Effective mall management increasingly involves tenant mix optimisation, leasing strategy, facility management, customer experience, marketing and events, digital engagement, data-driven footfall management, energy efficiency, safety and security, and the creation of differentiated experiential destinations.

The competitive environment, however, remains significant. The increasing availability of Grade-A retail developments and alternative retail formats, including high streets, mixed-use developments, business-park retail, outlet centres and transit-oriented retail, requires mall operators to continuously enhance the quality and relevance of their offerings. Retailers are increasingly selective about store locations and formats, placing greater emphasis on footfall quality, catchment demographics, visibility, customer experience and sales productivity.

Looking ahead, the outlook for mall management remains positive, supported by Indias growing consumption base, expansion of organised retail, increasing penetration of branded and D2C businesses, and consumer preference for integrated shopping and entertainment experiences. Mall operators with strong tenant relationships, differentiated customer propositions, efficient operations and an ability to adapt to changing consumer preferences are expected to be better positioned to capture the growth opportunities in the sector.

Overall, FY 2025-26 witnessed a continued strengthening of Indias organised retail and mall ecosystem, with the industry moving decisively towards quality, experience, premiumisation and omnichannel integration rather than merely increasing retail space. This trend is expected to continue shaping the mall management industry in the coming years.

THREATS AND CHALLENGES

Risk

Mall Management

As of 2026, the continued expansion of e-commerce and digital-first consumer behavior poses an ongoing challenge to traditional mall-based retail models. The convenience, variety, and competitive pricing offered by online platforms have led to a structural shift in consumer preferences, impacting footfall and sales in brick-and-mortar retail outlets.

While malls have increasingly positioned themselves as experience-led destinations—combining shopping with dining, entertainment, and community engagement—there remains a risk for malls that rely heavily on traditional retail anchors, especially in the absence of diversification or adaptive reuse of space.

Business Risk

The business of construction and development is heavily dependent on the performance of the real estate market in India and could be adversely affected if market conditions deteriorate. The real estate market is significantly affected by changes in government policies, economic conditions, demographic trends, employment and income levels and interest rates, among other factors. The development of real estate projects involves various risks including regulatory risks, financing risks and the risks that these projects may ultimately prove to be unprofitable.

Challenges faced by the industry

The mall management industry continues to operate in a dynamic and evolving landscape shaped by global economic uncertainties, supply chain disruptions, and increasing operational costs. Key industry challenges include shifting consumer preferences, rising attrition, counterfeit risks, and cybersecurity threats. The accelerated growth of e-commerce has intensified competition, compelling malls to transform into experience-centric destinations that go beyond traditional retail. Furthermore, the increasing presence of Exclusive Brand Outlets (EBOs) in Tier II and III cities, along with the sustained relevance of Multi-Brand Outlets (MBOs), underscores the importance of a well-curated tenant mix and differentiated offerings to drive sustained footfall and enhance customer engagement.

Financing costs

The acquisition of land and development rights needs substantial capital outflow. Inadequate funding resources and high interest costs may impact regular business and operations.

Financial Performance

Revenues

The income from Operations for the Company has decreased by 3.66% to INR 87.70 Crores in 2025-26 from INR 91.04 Crores in 2024-25.

Other Income

Other Income has Increased to INR 11.00 Crores in 2025-26 from 5.85 Crores in 2024-25

Operating Margin

EBIDTA (including other income) (Adjusted effect of Ind AS -116) for 2025-26 was INR 55.17 Crores as compared to INR 103.38 Crores in 2024-25.

Costs & Expenses

• Employee Costs

Manpower cost for 2025-26 was INR 8.38 Crores, which decreased from INR 7.99 Crores in 2024-25. In terms of percentage of Turnover, there was increase of 0.77% (as compare to 9.55 % for 2025-26 with 8.78% for 2024-25).

• Other Expenses

Other Expenses as a percentage of turnover has decreased to 17.08 % in 2025-26 as compared to 23.16% in 2024-25.

• Interest Expenses

Interest expenses for the year 2025-26 have increased to INR 16.58 Crores from INR 11.18 Crores in 2024-25. In terms of percentage of Turnover, it has increased to 18.90% for 2025-26 from 12.28% for 2024-25.

• Depreciation

Depreciation cost as a percentage of turnover has increased to 35.36 % in 2025-26 from 13.47% in 2024-25.

• Taxes on Income and Deferred Tax Provision

The Companys Deferred Tax Asset (net) has increased from INR 32.40 Crores in 2024-25 to INR 33.38 Crores in 2025-26. The Company has made current Tax provision of INR Nil and deferred Tax provision reversed of INR 0.84 Crores [earlier provision written back INR 0.07 Crores. Hence total Tax expenses works out to INR (0.78) Crores.

• Profit before Tax

As a result of the foregoing factors, profit before tax decreased from INR 79.94 Crores in 2024-25 by 72.36 Crores to arrive at a profit of INR 7.58 Crores in 2025- 26.

• Net Worth

The net worth of the Company has increased from INR 114.21 Crores as on March 31, 2025, to INR 124.69 Crores as on March 31, 2026. The increase in amount of net worth is on account of profit for the current year.

• Income Tax Expense

Income tax expense was INR (0.78) Crores for 2025-26 and INR 12.44 Crores for 2024-25.

• Profit for the Year

As a result of the foregoing factors, the Company reported a net profit of INR 8.36 cr in FY 2025–26, compared to a net profit of INR 67.50 Crores in the previous year.

• Earnings Per Share (EPS)

Basic and Diluted EPS were INR 1.38 for 2025-26 and INR 11.70 for 2024-25.

• Borrowings

The total standalone outstanding borrowing is INR 69.67 Crores as on March 31, 2026, and INR 79.08 Crores as on March 31, 2025.

• Cash and Bank Balance.

Cash and Bank balance decreased to INR 4.34 Crores as of March 2026 from INR 8.35 Crores as of March 2025.

• Investments

Total Investment of the Company was INR 50.85 Crores as of March 2026 and INR 55.22 Crores as of March 2025.

• Current Assets & Liabilities

The Companys current assets primarily consist of debtors, investment in liquid fund, inventories, cash and bank balances, loans and advances and other current Assets. Total current assets as on March 31, 2026, were INR 78.63 Crores as against March 31, 2025, were INR 75.72 Crores.

The Companys current liabilities primarily consist of short-term borrowings, trade payables, short term provisions and other current liabilities. Total current liabilities as on March 31, 2026, were INR 57.05 Crores as against March 31, 2025, were INR 62.71 Crores.

• Net Profit Margin

Net Profit Margin decreased by 64.61 % in 2025-26 as compared to 2024-25.

• Return on Net Worth

Return on Net Worth decreased from 59.10% in 2024-25 to 6.70% in 2025-26.

• Debtors turnover Ratio

The debtor turnover ratio increased from 11.41 in 2024-25 to 11.93 in 2025-26.

• Current Ratio

The current ratio increased from 1.21 in 2024-25 to 1.38 in 2025-26.

Internal Control System and Adequacy

Your Company has a proper and adequate system of Internal Controls, to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposal and that transactions are authorized, recorded and reported correctly.

The internal control system is supplemented by extensive internal audits, regular reviews by management and well-documented policies and guidelines to ensure reliability of financial and all other records to prepare financial statements and other data. Moreover, the Company continuously upgrades these systems in line with best accounting practices. The Company has independent audit systems to monitor the entire operations and the Audit Committee of the Board review the findings and recommendations of the internal auditors.

Human Resources

The Company regards its human resources as amongst its most valuable assets and proactively reviews policies and processes by creating a work environment that encourages initiative, provides challenges and opportunities and recognizes the performance and potentials of its employees. The industrial relations across different locations of the Company were cordial during the year. The Company has, over the last few months, built the team necessary to be able to build and execute the vision that has been articulated in the preceding paragraphs. The total number of employees of the Company on March 31, 2026, stood at 44.

Cautionary Statement

Statements in Management Discussion and Analysis describing the Companys objectives, expectations or predictions may be forward-looking within the meaning of applicable securities law and regulations. Actual results may differ materially from those expressed in the statement. Important factors that could influence the Companys operations include stiff competition leading to price-cuts, high volatility in prices of major inputs such as steel, cement, building materials, petroleum products, change in government regulations, tax laws, economic developments within the country and other factors such as litigation and industrial relations.