Godrej Properties Ltd Management Discussions

Global economic overview

In CY2024, the global economy displayed notable resilience despite uneven momentum across regions and sectors and grew at 3.3% as per International Monetary Funds (IMF) World Economic Outlook. Headline inflation moderated to 5.8% in CY2024 towards central bank targets, prompting the first wave of policy rate cuts in major economies. Labour markets, though slightly softened, remained tight, with unemployment near historical lows. Strong nominal wage growth, combined with easing price pressures, improved real household incomes. However, private consumption remained subdued, reflecting weak consumer sentiment and elevated uncertainty.

Rising geopolitical tensions, particularly in Eastern Europe and the Middle East, added further uncertainty, disrupting global trade, investment flows, and financial markets. These factors continued to cast a shadow over business confidence and long-term investment decisions.

Diverging regional growth patterns

• United States expanded by 2.8%, supported by resilient consumption, strong public spending, and stable exports.

• Eurozone posted modest growth of 0.9%, weighed down by weak investment in Germany and declining external demand.

• China faced head winds from sluggish consumption and continued stress in its property sector, with knock-on effects across Asia and Europe.

• India stood out as a bright spot, maintaining robust growth and reinforcing its position as a key engine of global expansion.

Outlook for CY2025 and beyond

The global economy enters CY2025 at a delicate inflection point. While inflation has eased, escalating tariff measures, particularly between the US and its trading partners, have raised effective tariff levels to a century-high, delivering a significant shock to global trade.

Inflation and policy dynamics

Global headline inflation is projected to average 4.3% in CY2025, easing to 3.6% in CY2026. While inflation estimates have been revised upwards for advanced economies, emerging markets are expected to benefit from more stable price conditions. In this environment, central banks may need to maintain a cautious stance, balancing support for growth with the need to anchor inflation expectations.

Going forward, policymakers will need to strike a careful balance between fostering growth and maintaining inflation discipline. While easing inflation could create room for monetary loosening, trade-related disruptions and climate- inked shocks remain key risks. Structural reforms, shifting demographics, and the transition to a low-carbon economy will significantly influence growth paths, with regional dynamics and policy frameworks playing an increasingly pivotal role in shaping emerging opportunities

Indian economic overview

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

In FY 24-25, India recorded a growth rate of 6.5%, underpinned by a recovery in rural demand, sustained Government investments in infrastructure and the continued buoyancy in the services sector. As per the world bank, India will remain resilient and grow at 6.3% in FY2026 led by strong domestic demand, a dynamic service sector, and a gradual revival in private sector investment. The macroeconomic environment remained stable, supported by a contained retail inflation rate of 4.6% - the lowest since FY 18-19, narrowing fiscal deficit and manageable current account, and healthy foreign exchange reserves, bolstering investor confidence.

The Reserve Bank of Indias calibrated monetary policy, which included two reporate reductions of 25 basis points each in February and April 2025, signalled a pro-growth orientation while maintaining inflation discipline.

Industry context

Indias real estate sector reflects the broader optimism surrounding the countrys economic future. According to the IMFs World Economic Outlook, April 2025, Indias GDP has more than doubled to ~$4.19 trillion, from $2 trillion in 2014, propelling the country from the tenth to the fifth-largest economy in the world and is on course to become the third- largest by FY 30-31, growing at a sustained pace of around 6.7%. This growth trajectory is powered by a convergence of long-term drivers: expanding middle class, accelerating urbanisation, increasing disposable income, rapid digital adoption, and continued structural reforms

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

Real estate is a key contributor to Indias GDP and employment generation. According to Knight Frank, the sector is expected to grow from $300 Billion in CY2024 to $650 Billion by CY2025, reaching $lTrillion by CY2030 and potentially $5.8 Trillion by CY2047.

Source Knight Frank

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

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

Economic resilience driving housing demand

Indias housing market continued to perform strongly in CY2024, driven by robust demand, particularly in the mid- and high-end residential segments, and supported by rising aspirations, increasing purchasing power and growing consumer confidence. Sustained momentum in homebuyer interest propelled annual residential sales to a new all-time high, reflecting the deep-rooted structural strength of Indias housing demand.

Policy reforms strengthening affordability

Government-led policy interventions have played a critical role in enhancing housing affordability and encouraging homeownership. The Union Budgetfor FY 25-26 introduced meaningful personal income tax reductions, increasing disposable incomes and driving demand for affordable housing, particularly across Indias fast-developing urban centres. Such reforms are contributing to a more inclusive, broad-based and geographically balanced growth trajectory for the real estate sector.

Urbanisation and infrastructure expansion

Indias accelerated urbanisation is being matched by a significant increase in infrastructure investments. The governments capital expenditure on infrastructure has more than doubled—from Rs5 lakh crore in FY 21-22 to Rsll.ll lakh crore in FY 24-25—with a strong focus on improving roads, railways and aviation networks. These upgrades are transforming connectivity, unlocking the real estate potential of Tier II and Tier III cities, and creating new corridors of opportunity for developers and homebuyers alike.

lakh crore

Governments infra development outlay in FY 24-25

Technology redefining real estate

The integration of artificial intelligence (Al), digital platforms, and virtual engagement tools is transforming the way real estate is designed, marketed and transacted. Al-powered property analytics, smart home solutions and immersive virtual site visits are improving transparency, enhancing customer experiences and streamlining operations. As the industry becomes increasingly data-driven and digitally enabled, real estate transactions are evolving to be more seamless, personalised and efficient

Residential real estate market

The real estate market continues to create significant opportunities for both domestic and international investors. Overall, the residential sector remains a focal point for growth, fuelled by sustained demand. The stable economic and interest rate scenario, along with the still strong momentum, hold enough tailwinds for the market. The government

remains committed ensuring housing for all and is taking steps to spur private sector participation and enable easier access to financing for homebuyers in this segment.

In CY2024, Indias residential real estate sector scaled new heights with sustained strong demand. A clear shift toward premiumisation is visible with buyer preferences evolving, driven by aspirations for an enhanced lifestyle. According to Knight Frank , the residential market has had a tremendous run since the pandemic in 2020 with sales volumes in the primary market growing at an annualised rate of 23%. Increased savings during lockdowns, minimal income disruptions in mid- and high-income brackets, household wealth creation and robust economic growth have fuelled demand. Market sentiments have also been positive largely due to an upbeat economic outlook, with India demonstrating growth and stability in a still volatile global economic and geopolitical environment.

Annualised growth in sales volume in residential market since CY2020

In CY2024, 3.51 lakh units got sold, representing a 7% growth. Most markets were at multi-year highs, except for NCR, which saw a marginal decline. Launches also kept pace, with 3.73 lakh units coming into the market aligned with changing lifestyle preferences for more space, amenities and differentiated experiences. As a result, the contribution of inventory above Rs1 crore could see a visible increase. The Quarters to Sell (QTS) level continued to fall steadily to 5.8 quarters from 10 quarters three years ago, indicating a strong demand momentum. Despite the increasing inventory level, the fall in QTS indicated an expanding industry size. Prices grew across markets, with Bengaluru recording the highest at 12% YoY.

NCR

The shift toward premium housing remains a defining trend in NCRs residential market. Properties priced above Rs1 crore accounted for nearly 80% of total sales volume, compared to less than 40% three years ago. This growth is indicative of sustained demand for spacious homes with state-of-the-art amenities, driven by affluent homebuyers prioritising quality living spaces. Within this segment, the tl-2 crore and Rs2-5 crore bracket saw the most significant activity, supported by well-established developers offering projects in strategic locations. In contrast, the segments below Rs50 lakh continue to show a shrinking trend.

In CY2024, NCR maintained a steady performance with robust demand seen in the primary residential market. However, NCR was the only market that saw sales dip marginally by 4% YoY to 57,654 residential units, albeit from a multi-year high base, and low inventory levels in the mid- and-affordable categories, in the right locations.

Gurugram retained its dominance as the preferred micromarket in NCR, accounting for half of the total sales and launches. The continuous development of the Dwarka Expressway, along with the anticipated completion of key infrastructure projects, has significantly enhanced the areas connectivity and appeal. The Southern and Central Peripheral Roads continue to draw interest, fuelled by a mix of premium projectsthat caterto high-net-worth individuals. Noida and Greater Noida collectively contributed around a third of the sales. The Uttar Pradesh governments dispute resolution mechanisms have rejuvenated buyer confidence, resolving long-standing issues with stalled projects. Greater Noida witnessed notable traction owing to improved infrastructure, including the Noida International Airport and the extension of metro connectivity.

New launches in CY2024 experienced a slight 3% decrease to 60,699 units. The inventory level rose marginally to 1,06,652 units and QTS of 7.3 quarter was healthy. Prices grew by 6% to Rs5,066/sq. ft.

The shift toward premium housing remains a defining trend in NCRs residential market. Properties priced above Rs1 crore accounted for nearly 80% of total sales volume, up from less than 40%three years ago. This growth is indicative of sustained demand for spacious homes with state-of-the- art amenities, driven by affluent homebuyers prioritising quality living spaces. Within this segment, the Rsl-2 crore and Rs2-5 crore bracket saw the most significant activity, supported by well-established developers offering projects in strategic locations. Conversely, the segments below Rs50 lacs continueto show a shrinking trend.

MMR

The residential market in Mumbai is poised for continued growth, driven by strong consumer demand furled by ongoing infrastructural developments, rising affluence and evolving consumer preferences. In CY2024, the market retained its top position, with 96,187 units sold and almost an equal number of units launched. Mumbai benefits from a thriving economic ecosystem, positioned as the centre for finance, commerce and industry. Further, completion of infrastructure projects such as the Mumbai Coastal Road, Metro Line 3 and the Mumbai Trans Harbour Link provides additional fillip to demand.

Most new launches in Mumbai were concentrated in the peripheral Central and Western Suburbs, as well as Thane. Inventory levels remained at 1.65 lakh units, while QTS at 7.2 quarters was healthy. Pricing showed an increase of 5% YoY to Rs8,277/sq. ft. While high QTS levels in higher ticket sizes warrant close observation, the markets strong fundamentals ensure stability and long-term growth potential

Bengaluru

Bengalurus residential real estate market in CY2024 continued its trajectory of robust performance, bolstered by consistent demand across various segments. Sales grew by 2% to 55,362 units. More importantly, there was heightened activity across premium housing segments with ticket sizes Rsl-5 crore contributing over 50% to volumes, indicating a

shift in buyer preferences towards upscale housing, driven by Bengalurus affluent demographic from its thriving IT and startup ecosystems.

South Bengaluru, comprising Electronic-City, Koramangala and Outer Ring Road, remained a leading micro-market. The emergence of luxury housing in this predominantly mid-segment market highlights the growing appetite for high-end residential options among the citys affluent. East Bengaluru, comprising Whitefield and KR Puram, also showed remarkable growth, driven by its reputation as the citys prime IT hub. North Bengaluru, comprising Hebbal, Devanhalli and Bellary Road, stands out as one of the fastest growing residential clustersdueto its strategic location near the airport, further bolstered by infrastructure projects like the Blue Line Metro.

With inventory levels at 54,131 units and QTS at only 4 quarters, the Bengaluru market continues to appear as the fundamentally most healthy market. Pricing showed an increase of 12% YoY to Rs6,620/ sq. ft., the most for any market.

Pune

Pune continued to be a dynamic real estate market, balancing affordability with premium offerings with sales of 52,346 units, up 6% YoY, supported by strong demand from IT professionals, infrastructure development and evolving buyer preferences. New launches increased substantially by 40% in CY2024to 59,548 units, highlighting rising developer confidence. The Western Zone, including prominent areas like Hinjewadi and Baner, dominated with a significant share of total launches, leveraging its proximity to IT hubs and enhanced connectivity.

Punes inventory levels increased by 18% YoY in CY2024 but QTS remained healthy at 3.7 quarters, reflecting quicker absorption and strong buyer demand. Prices grew by 6% to Rs4,778/sq.ft.

Office market

The office market across major Indian cities sustained its record-breaking momentum, with annual transaction volumes surpassing 71.9 Million sq. ft—the highest so far. As a result, vacancy levels also dropped to 15%, the lowest since the pandemic. The positive sentiment around the economy has been the primary driver of occupier activity in the office market.

Transaction volumes in major markets of Mumbai, NCR, Bengaluru, Pune and Ahmedabad scaled record highs in CY2024. Bengaluru led with 18.1 Million sq. ft. of leasing, followed by NCR, Mumbai and Hyderabad at 12.7 Million sq ft., 10.4 Million sq. ft. and 10.3 Million sq. ft., respectively.

Hyderabad, on the other hand, led with completions of 15.6 Million sq. ft., followed by Bengaluru with 12.4 Million sq. ft. out of total completions of 50.6 Million sq. ft. Overall, completions were comparatively subdued as development interest continues to be largely focused on residential projects and vacancy levels remained above prepandemic levels.

While the overall transacted volume has been on a steady uptrend, its underlying constituents have changed substantially over time. Third party IT services had been a prominent driver of office space demand previously, but India-facing businesses have been anchoring demand in recent years due to the strategic business need to be aligned with the growing Indian market. India-facing businesses accounted for 36% of the total volume transacted during CY2024 and Global Capability Centres (GCC) took up 31% of the total transactions.

The pricing has shown a steady growth between 3% and 7% across all markets.

Outlook

The sustained surge in office demand throughout CY2024, despite the volatile global economic environment, underscores the positive business sentiment that exists in the country today. The Indian office space market has few headwinds over the near term other than a weak supply scenario and appears well poised to sustain its momentum in CY2025.

Union Budget 2025-26 takeaways

The Union Budget for 2025-26 continued to emphasise infrastructure development and housing while providing a boostto disposable incometo drive consumption, setting a favourable backdrop for a more inclusive and balanced real estate growth story.

Income tax rationalisation strengthening affordability

The Government introduced personal income tax cuts by rejigging the income tax slabs and raising the rebate cap, increasing disposable income and, in turn, stimulating demand for affordable housing, especially across emerging urban centres.

Reviving stalled projects

It announced a second Special Window for Affordable and Mid-Income Housing (SWAMIH) fund, with an allocation of 715,000 crore, to resolve project delays due to financial constraints. This move is expected to benefit homebuyers awaiting possession and also inject fresh capital into stalled projects. By enhancing liguidity in the sector, this initiative is expected to attract more investments into this space.

Climate change and real estate sector

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

Housing and inclusive development

Aligned with its vision of housing for all, the Government launched the Pradhan Mantri Awas Yojna - Urban 2.0 (PMAY-U 2.0) with a proposed allocation of 719,784 crore, up 36% from 713,670 crore estimated in the previous budget. Over 88 lakh homes have already been completed under the first phase of PMAY-U. This initiative presents a big opportunity for developers. Private players can participate in creating well-planned, sustainable housing projects with Government support.

Urbanisation and infrastructure expansion

The Governments infrastructure investments, with a strong emphasis on enhancing roads, railways, and aviation network, are improving connectivity, unlocking real estate potential in Tier II and Tier III cities, creating new growth corridors for developers and homebuyers alike. The newly introduced 71 lakh crore Urban Challenge Fund will further incentivise cities to boost urban development by raising funds through municipal bonds and Public- Private Partnerships.

short-term occurrences, and vary by location or in response to efforts to shift towards a low-carbon economy.

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

In CY2022, emissions from buildings, covering both operational (26%) and embodied emissions (7%), accounted for about a third of total energy system emissions . The emissions intensity of cement production has increased by close to 10% since 2015. The rest stems from direct on-site emissions, predominantly from electricity use for lighting and air conditioning. Over the past decade, operational energy consumption in buildings has surged due to rising urbanisation, increased cooling demand, and expanding commercial floor space. Indias building sector energy consumption has more than doubled since 2000. Theres a significantyet unexplored opportunity to reduce emissions, hindered by the ongoing reliance on fossil fuel-driven assets, the absence of potent energy-efficiency mandates, and a deficit in investments towards sustainable buildings .

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

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

Budget 2025-26 - Key takeaways for climate action

The Union Budget 2025-26 reflects Indias commitment to climate action through several key initiatives. While it emphasises renewable energy and clean transportation, it also highlights the need for more comprehensive strategies in industrial decarbonisation and agricultural sustainability to achieve Indias longterm climate objectives.

The Ministry of New and Renewable Energy received a significant budgetary boost, with allocations increasing from Rs19,100 crore in the previous fiscal to Rs26,549 crore. This funding supports flagship schemes such as the PM Surya Ghar and the Green Hydrogen Mission, aiming to expand renewable energy infrastructure.

In addition, the Nuclear Energy Mission was allocated ^20,000 crore, emphasising the development of small modular reactors to enhance energy security. Investments in solar PV manufacturing, the Green Energy Corridor, and battery energy storage systems further demonstrate the Governments integrated approach to increasing non-fossil fuel capacity and meeting growing energy demands.

The Budget provided support for green steel (2.2 tonnes of C0₂ emission for every tone of steel produced), including a sixfold increase in the specialty steel Production Linked Incentive (PLI) scheme from Rs 55 crore to Rs 305 crore. Initiatives like the restructured Shipbuilding Financial Assistance Policy and the establishment of a ^25,000 crore Maritime Development Fund are steps toward promoting sustainable practices. Nonetheless, sectors like cement, despite allocations for infrastructure development under the PM Gati Shakti master plan, lack targeted green initiatives, indicating a need for more comprehensive industrial decarbonisation strategies.

The transportation sector witnessed a notable increase in funding for electric mobility, with allocations rising from Rs 4,435 crore to Rs 5,322 crore. The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme received Rs4,000 crore to accelerate electric vehicle adoption. The PM-eBus Sewa Schemes funding also increased significantly, supporting the expansion of electric bus operations. To bolster domestic EV manufacturing, the Government removed import duties on 35 items essential for EV battery production, aiming to strengthen the electric vehicle ecosystem. However, the non-renewal of the Electric Mobility Promotion Scheme, which previously offered subsidies for advanced battery-fitted EVs, suggests a shift in policy focus.

Opportunities

Housing Demand

A combination of economic growth, increasing income evels, and the perception that housing prices are stabilising, which has led to a notable uptick in housing demand. Potential buyers, previously on the sidelines, are now entering the market as first-time homeowners while existing homeowners are looking for larger spaces. Theshift towards remote and hybrid work models is further influencing the desire for more spacious living arrangements. Employers offering flexible work options continue to be a significant factor in this trend, as it allows employees the freedom to live further from the office, thereby boosting demand for residential properties in various segments.

Sector Consolidation

The Indian real estate sector, characterised by its highly fragmented nature, has been undergoing a significant phase of consolidation for several years. This consolidation has been accelerated by variousfactors, includingthe pandemic, which has effectively sidelined less robust participants. The current environment in the real estate industry poses challenges to the entry of new competitors. With the trend leaning towards a smaller number of dominant developers in each region, this period of consolidation offers an attractive chance for current real estate firms to meet the increasing demand for housing.

Affordable Housing

Affordable housing remains a pivotal area for developers and a primary focus for the government. The PMAY is close to achieving 3 crore houses, and an additional 2 crore houses are targeted for the next 5 years, as discussed above. This shows that the affordable housing market is projected to experience a surge in demand, bolstered by an anticipated economic revival and increasing income levels.

Digital Real Estate Sales

Since the pandemic, marketing efforts in real estate have expanded beyond attracting new customers and building brand awareness to include creating personal connections digitally. Thanks to technology that allows property purchases online, developers have seen strong sales, even during lockdown periods. They are using digital tools to engage with potential buyers, present project details, offer virtual tours and target Non-Resident Indians (NRIs) to increase sales. Advanced technologies like virtual reality, augmented reality, and Al-driven chatbots are increasingly being employed to offertailored servicesto potential clients. The share of real estate transactions conducted online is likely to increase further, requiring developers to remain aligned with the advancements in digital technologies.

Threats & challenges

Regulatory Hurdles

The real estate industry is subject to extensive regulations, and any negative adjustments in governmental policies orthe regulatory framework can negatively influence the sectors

performance. Significant delays in procedures related to acquiring land, determining land use, initiating projects, and obtaining construction approvals are common. Changes in policy applied retrospectively, along with regulatory obstacles, could affect profitability and diminish the appeal of both the sector and the companies active within it.

Monetary Tightening and Funding Issues

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

Shortage of Manpower and Technology

As the countrys second-largest employment provider, the real estate sector relies significantly on manual labour. The pandemic severely impacted this sector due to labour shortages, disrupting project completion schedules. Consequently, theres a pressing need for the adoption of alternative construction methods that are less dependent on manual labour and more on technology.

About Godrej Properties Limited

Godrej Properties, part of the venerable Godrej Industries Group (GIG) founded in 1897, is a leading real estate player in India. Upholding the Groups ethos of innovation, sustainability and excellence, Godrej Properties has been synonymous with trust and quality for over a century. With a focus on leveraging advanced design and technology, we are committed to exceeding stakeholder expectations by crafting exceptional and innovative spaces, rooted in deep consumer understanding. We believe in the power of collaboration to achieve excellence, partnering with premier designers, architects, and contractors both in India and internationally. This approach ensures that every development not only meets the present needs of its residents and communities but is also durable and forward-thinking, reflecting the best the world has to offer in real estate.

A. Leveraging the Godrej Brand

The Godrej brand is well-recognised throughout India due to its long history in the market, the diverse sectors the Godrej Industries Group operates in, and the trust it has built over time. This strong brand reputation aids in several business activities, such as establishing joint development agreements, moving into new cities and markets, and forming business partnerships. Godrej Properties has also entered the plotted development space in Tier-2 cities, recognising their sales potential. The brand has been crucial in developing solid relationships with customers, service providers, partners, investors and lenders, helping us secure a strong position in the industry. In addition, our binding arrangements with Godrej & Boyce appointing GPL as the development manager for developing all its lands in Vikhroli is a large opportunity.

B. Sales Momentum

We delivered eight consecutive years of record annual sales, underscoring the strength of our brand and the quality of our products. GPL recorded the highest ever booking value and volume by any listed developer in India in a financial year, with booking value reaching 729,444 crore, up 31% YoY and 9% above guidance, and sales volume of 25.73 Million sq. ft., up 29% YoY. We also achieved the highest cumulative booking value of 784,704 crore for any real estate developer since FY 19-20, with 764,203 crore sold since FY 22-23.

Our sales are most widely distributed in the industry, with only 36% booking value coming from the largest market, 27% from the home market and 13% from the largest single project. This surge was the result of launching 34 new projects or phases in FY 24-25. The NCR, MMRand Bengaluru markets contributed 710,523 crore, 78,034 crore and 75,089 crore, respectively. 12 projects spread across the six markets of Gurugram, Noida, MMR, Bengaluru, Pune and Hyderabad achieved booking value of more than 71,000 crore, highlighting the broad-based momentum in demand.

Sales momentum increased in the second half, with Q4 FY 24-25 being our most successful quarter ever, contributing 710,163 crore, or 35% of our annual booking value. This was also the first time we crossed the 710,000 crore mark in a quarter and the seventh consecutive quarters of achieving more than 75,000 crore of booking value.

In FY 25-26, we expect to increase residential bookings to over 732,500 crore by launching a large number of exciting projects, combined with strong sustenance sales. With a robust launch pipeline, strong balance sheet and sectoral tailwinds, we expect to sustain the momentum in FY25-26.

Performance in key markets

NCR

In FY 24-25, the NCR region remained GPLs top-performing area, marking yet another year of record-breaking sales driven by enthusiastic responses to new launches and consistent sales performance. We achieved a 5% YoY increase in booking value to 710,523 crore, on a high base, from sales of 5.66 Million sq. ft. area. This impressive sales outcome was supported by several successful new projects and phase launches, alongside sustained sales from ongoing developments. A highlight this year was the outstanding performance of Godrej Jardinia, Godrej Riverine, Godrej Vrikshya, Godrej Astra and Godrej Zenith, each achieving a booking value of more than 71,000 crore.

Godrej Jardinia, in Sector 146, was our best ever launch in Noida, achieving a booking value of 72,377 croreacross 1.60 Million sq. ft. Godrej Riverine in Sector 44, Noida achieved a booking value of 72,206 crore across 1.01 Million sq. ft. Godrej Vrikshya in Sector 103, Gurugram achieved a booking value of 71,633 crore across 0.94 Million sq. ft. Godrej Astra in Sector 54, Gurugram achieved a booking value of 71,323 crore across 0.42 Million sq. ft. Godrej Zenith in Sector 89, Gurugram achieved a booking value of 71,189 crore across 0.77 Million sq. ft. Other major projects contributing to sales were Godrej Miraya in Sector 43, Gurugram, which achieved a booking value of 7701 crore across 0.12 Million sq. ft. Godrej South Estate, Godrej Aristocrat, Godrej Green Estate, Godrej 101/Aria and Godrej Tropical Isle contributed between 7100 crore to 7500 crore to booking value, driven by sustenance sales and a strong market reception to new phase launches.

Mumbai

Sales in Mumbai reached 7.82 Million sq. ft., a 91% YoY increase, generating a booking value of 78,034 crore, up 23% YoY. This strong sales performance was fuelled by the launch of some new projects/phases, along with sustained sales momentum from ongoing projects. Notably, Godrej Reserve in Kandivali, reported sales of 0.82 Million sq. ft., with a booking value of 71,654 crore. Godrej Avenue Eleven in Mahalaxmi, reported sales of 0.35 Million sq. ft., with a booking value of 71,106 crore. Both benefitted from sustenance sales and a strong market reception to new phase launches. Other notable contributors were Godrej City, the township project in Panvel, which reported sales of 1.71 Million sq. ft. with a booking value of 7815 crore; Godrej Horizon, which reported sales of 0.31 Million sq. ft. with a booking value of 7716 crore; Godrej Woodside Estate, which reported sales of 1.58 Million sq. ft. with a booking value of 7700 crore; Godrej Hillview Estate, which reported sales of 1.70 Million sq. ft. with a booking value of 7672 crore; Godrej Vistas, which reported sales of 0.19 Million sq. ft. with a booking value of 7430 crore.

Godrej Carmichael, Godrej Nurture, Godrej Ascend, Godrej Urban Park, Godrej Golfside Estate, Godrej Sky Terraces, Godrej Tranquil and Godrej Five Gardens contributed more than 7100 croreto booking value.

Bengaluru

In Bengaluru, total sales reached 5.13 Million sq. ft., generating a booking value of 75,089 crore, up 107% YoY, driven by the launch of two new projects. Godrej Woodscapes was our most successful ever launch, registering sales of 3.97 Million sq. ft. with a booking value of 73,736 crore, while Godrej Lakeside Orchard registered sales of 1.15 Million sq. ft. with a booking value of 71,271 crore. Godrej Ananda and Godrej Athena contributed more than 7100 croreto booking value.

Pune

In Pune, total sales reached about 3.92 Million sq. ft. with a booking value of 73,409 crore, marking a 27% YoY increase, propelled by the launch of several new projects/phases and solid sales performance from ongoing projects. The new launch, Godrej Evergreen Square achieved sales of

I. 41 Million sq. ft. with a booking value of 71,144 crore. New project launches, Greenfront and Eden Estate Phase

II, led to Hinjewadi together with all its phases achieving sales of 1.17 Million sq. ft. with a booking value of 71,019 crore. Other notable contributors include Godrej Emerald Waters, Godrej Skyline, all phases of Mahalunge, all phases of Manjari and Godrej Park Greens—each contributed more than 7100 croreto booking value.

Other Cities

GPL achieved sales of around 3.21 Million sq. ft., generating a booking value of 72,389 crore, up 191% YoY. This includes contribution from Godrej Madison Avenue, our first project in Hyderabad, which achieved sales of 0.91 Million sq. ft. with a booking value of 71,081 crore. Godrej Blue, another new launch in Kolkata, achieved sales of 0.45 Million sq. ft. with a booking value of 7624 crore. Other notable contributors include Godrej Forest Estate in Nagpur, Godrej Sunrise Estate in Chennai and Godrej Seven in Kolkata, each contributed more than 7100 crore to booking value.

C. Business Development

FY 24-25 marked our entry into the Indore market with two new deals. The year also included one project addition each in Ahmedabad and Kolkata after a few years. During this period, we added 14 new residential projects, characterised by 100% economic interest. These projects, which cover a saleable area of -19.02 Million sq. ft., carry a revenue potential of around 726,450 crore, exceeding the initial annual forecast of 720,000 crore in booking value. The strategic locations of these projects are poised to bolster our continued rapid growth and significantly enhance our margin profile. In addition, the ongoing consolidation in the real estate sector, accelerated by the pandemic, continues to present significant opportunities for GPL to further business development. With growth capital at our disposal, we plan to concentrate on opportunistic investments and expand our project portfolio in FY 25-26.

Residential deals signed by GPL in FY 24-25

Particulars	Estimated Saleable Area (Million sq. ft.)	Estimated Booking Value (Rs Cr)
Sector-53 2, GCR, Gurugram	1.70	5,500
Kharghar, MMR	1.97	3,500
Sigma-Ill, Greater Noida	2.04	2,700
Sector-53, GCR, Gurugram	0.81	2,600
Yelahanka, Bengaluru	1.50	2,500
Sector-12, Greater Noida	1.75	2,400
Godrej Evergreen Square, Pune	2.26	1,800
Vastrapur, Ahmedabad	0.90	1,300
Thanisandra, Bengaluru	0.90	1,200
Sector-39, GCR, Gurugram	0.34	800
Godrej Woodside Estate, MMR	1.76	650
Indore Plotted	1.16	500
Indore Plotted-2	0.62	500
Joka Plotted, Kolkata	1.31	500
Total	19.02	26,450

D. Customer Centricity

FY 24-25 demonstrates GPLs commitment to delivering top-notch customer experience. Our performance, measured through the Net Promoter System, which we adopted in FY 18-19, reflects the impact of our customer experience and the customer advocacy it creates.

NPS trend

Survey Year	FY 18-19	FY 19-20	FY 20-21	FY 21-22	FY 22-23	FY 23-24	FY 24-25
Relationship NPS Survey Responses	9,306	12,283	8,857	8,806	13,332	14,267	17,217
Combined relationship NPS	28%	61%	42%	55%	65%	68%	67%

In FY 24-25, we increased focus on creating delight at the time of handovers while making our processes agile to handle incoming customers.

Initiatives to enhance customer experience

1. Improving experiences during key moments of truth

The emotion of Shubharambh during handovers: Taking post-possession customer experience to a new orbit, we have commenced the practice of celebrating customers homecoming as a carnival. Adorned in celebrative decor, this handover carnival is presided over by top management with entire zonal leadership team participating in the handovers.

Customer testimonials as social assets: We have developed a new video series, titled "Impressions" for social media to amplify the real voices, reflections, and stories of the living experience at Godrej Homes. Over 200 customer video testimonials have been captured underthe Impressions series.

In FY 24-25, we welcomed 13,000+ customers, completed 16,000+ registrations, handed over 6,000+ homes, facilitated 25,000+ customer site visits, and provided 1,200+ unique construction updates with quality talking points.

2. Technology as a service

The Godrej Properties Ltd. Mobile App, launched in FY 21-22, empowers customers to manage all aspects of their purchases at their fingertips. Continuing to deliver customer delight, the Mobile App maintained a 4+ rating on Google Play and App Store. The enablement of alternate payment modes (credit/debit card) on the Mobile App has resulted in 2X growth in App-based collections. To further enhance the experience of self-service, we launched a dedicated communication channel over WhatsApp. The medium allows enhanced engagement, quick response to routine queries, and audio/video call features for realtime interaction with the Relationship Manager.

E. Global Recognition for Sustainability Initiatives

GPL features among the top 10% in Real Estate Management and Development Sector globally and has been recognised as an Industry Mover by S&P Global. We were also included in the Sustainability Yearbook 2025 and the Emerging Markets Index of the prestigious Dow Jones best-in-class indices (formerly DJSI) for the second consecutive year, reaffirming our commitment to ESG excellence.

The DJSI, developed through a collaboration between S&P Dow Jones Indices and RobecoSAM, serves as a leading benchmark for corporate sustainability. S&P Global conducts an annual sustainability assessment and ranking based on economic, social, and environmental indicators in alignment with sustainable business development guidelines. Companies are selected based on a comprehensive assessment of their long-term economic, environmental and social performance, with the top 10% in each industry included in the global index. This best-in-class approach ensures that only companies demonstrating superior sustainability practices are recognised.

GPLs achievement in the DJSI underscores a proactive approach to sustainability, with strategic enhancements across various dimensions such as climate strategy, human rights, occupational health & safety, and information security/cybersecurity governance. By aligning practices with the rigorous criteria set forth by the DJSI, GPL demonstrates leadership in sustainable real estate development.

GPL ranks second on the Global Real Estate Sustainability Bench mark (GRESB) globally with a score of 99/100 and a 5-star rating for the fifth consecutive year. GRESB is a Netherlands-based organisation established in 2009 through a collaboration between pension funds and Maastricht University. It provides standardised and validated ESG data and benchmarks for the real assets investment community, including real estate and infrastructure sectors. GRESB conducts annual sustainability assessments for standing real estate investments, development projects, infrastructure funds, and assets, enabling nvestors and fund managers to evaluate and compare ESG performance across portfolios

F. Health and Safety Management System

Safety is our top priority and a critical component for achieving our ambitious business goals. We are committed to the health and safety of our employees and all stakeholders, as outlined in the GPL Health & Safety Policy. To ensure a strong safety culture where every employee takes responsibility for safety, we have implemented a robust health and safety management system certified to the ISO 45001:2018 international standard

Our safety management system follows a proactive PDCA cycle, emphasising leadership commitment, consultation and participation at all levels and functions to achieve a Score Zero safety record. We have established predefined safety processes and standard operating procedures (SOPs), including comprehensive safety checks and inspections starting from the contractor pre-qualification stage. Each location has a dedicated safety team tasked with promoting safety awareness and implementing various training programmes as part of our monthly safety activity plan. In addition, our Health and Safety Management system undergoes regular assessment by certifying agencies through surveillance audits to ensure continual improvement and compliance.

• Visible Safety Leadership

Visible Safety Leadership is an essential aspect of our safety management system, as outlined in the GPL Health & Safety Policy. This policy reflects the commitment of top management to implement and monitor occupational health and safety (OH&S) measures within the organisation to create a safe workplace, ensure compliance with OH&S regulations, solicit stakeholder input, and continuously improve safety processes.

To make OH&S a business imperative that enables operational excellence, we engage with top management to reinforce safety practices through visible leadership. This initiative involves three levels of Management Review Meetings (MRM) to assess organisational performance and promote a positive safety culture. MRM Level 1, chaired by the COO at the Head Office, is followed by Level 2, chaired by the Operations Head at the regional level, and Level 3, chaired by the Project Manager at the project level. In addition, we have implemented a Safety Involvement Index mechanism to encourage active participation of Operations Heads in various OH&S initiatives at project sites.

Contract Health and Safety Management System

The Contract Health and Safety Management System is a proactive approach that begins well before contract awarding. Itinvolves evaluating prospective contractors through a pre-qualification (PQ) procedure, assessing business risks, and developing mitigation plans based on the contractors PQ score. Preference is given to contractors who are ISO 45001 certified during the pre-qualification stage. A joint safety kick-off meeting briefs the contractor, and the subsequent mobilisation phase is monitored and audited by a safety and health infra tracker. Contractors are required to sign a formal undertaking while implementing the site health and safety plan, which includes standard operating procedures (SOPs), work instructions, and guidelines to ensure compliance during work execution on-site.

Hazard Identification and Risk Assessment (HIRA)

One crucial aspect of the GPL Safety System is assessing risks using an approved risk matrix before commencing any activity. At each site, a cross-functional Hazard Identification and Risk Assessment (HIRA) team is formed to identify hazards, evaluate associated risks, and develop control measures following the hierarchy of control. While the main responsibility of this team is to conduct a comprehensive HIRA exercise, they also provide workers with training on hazards, risks, and control measures. The implementation of these controls on-site is enforced through the Permit to Work system.

Training and Awareness Campaign

We prioritise skill development, competence building, and awareness as the key pillars of our safety and health management system at GPL. Our focus revolves around conducting awareness campaigns, skill training sessions, motivational initiatives, and health camps. In the current reporting year, we organised over 39707 safety training sessions across offices and construction sites. All crucial stakeholders received necessary training and awareness programmes in preparation for the implementation of ISO 45001:2018.

We have formalised the process of identifying training needs and creating a training calendar for safety sessions at sites, effectively executing multiple programmes to cultivate a robust safety culture across all project sites. National Safety Day, World Environment Day, Road Safety Week, and Fire Service Day are commemorated at our sites, serving as vital platformsfor raising awareness about health and safety Safety communications play a pivotal role in our Safety Management System, promoting safety awareness and fostering a strong safety culture throughout GPL. Additionally, GPL has conducted Safety Assessment exercises to assess the safety awareness levels among the execution team

To further enhance safety culture and reinforce operational controls, we conduct safety campaigns on various topics such as the usage of cell phones at construction sites, rope-suspended platforms, fire prevention and control, and safety in-store management. The "horizontal deployment of learnings" initiative aids in developing a positive safety culture and continual improvement across GPL, aimed at preventing the recurrence of any unfortunate incidents

Safety Audit

The safety audit serves as a regular evaluation of our entire occupational health and safety management system, encompassing policies and programmes designed to prevent workplace accidents or incidents. We adhere to a stringent safety audit process in alignment with ISO 45001 requirements, conducting audits quarterly. Our qualified internal safety auditors oversee the audit, while our online safety audit portal efficiently monitors and manages the process. Through analysis of the safety audit findings, we pinpoint gaps and areas for enhancement within our health and safety management system.

External Recognition (This section will be updated once award list is received)

Achieving third-party recognition and accolades on health and safety systems endorses the organisations reputation, brand value, and safety system implementation. GPL received over 89 external recognitions and accolades in the reporting year, including international and national safety awards such as the RoSPA (Royal Society for the Prevention of Accidents), British Safety Council International Safety Award, National Safety Council India, Global Safety Summit, GreenTech Foundation and ICC National OH&S. These remarkable recognitions and accolades indicate a well-established and effective health and safety management system.

Health Surveillance Programme

As part of our Health Surveillance Programme for workers at project locations, we conduct preemployment medical examinations. Personnel responsible for operating machinery or driving vehicles undergo comprehensive medical assessments upon joining and at regular intervals thereafter.

G. Human Capital

At GPL, weve experienced significant business growth in the past year and are dedicated to sustaining this momentum. Consequently, our employee count surged 39%YoY, rising from 3,015 to 4,199 employees.

We attribute our operational success to our dedicated team of Godrejites, who are instrumental in driving our aspirations for the future. At GPL, we take pride in fostering an inspiring workplace culture characterised by agility and high performance, aimed at attracting, nurturing, and retaining top talent.

As part of the esteemed 128-year-old Godrej Group, we cherish a legacy founded on strong values of trust, integrity, and respect. Meanwhile, our ambitious growth plans provide exceptional career prospects, even at the early stages of ones professional journey.

People Philosophy

Our philosophy stands tall and proud on three principles:

• Your Canvas: "Our organisation is growing and we want you to grow with us." We have an internal talent marketplace and encourage our people to apply for aspirational roles. With our empowering culture, our people get a chance to lead early on.

• Tough Love: "Go ahead and challenge yourself! Weve got your back." We believe the race for the future is not for the faint-hearted. We expect a lot from our people and differentiate basis performance and potential through career opportunities and rewards.

• Whole self: "We are selfish about your happiness." Simply because happier people make for a more fun culture at Godrej.

Building Talent from Within

We prioritise internal talent development and actively cultivate the next generation of leaders within our organisation. Rather than solely considering seniority and tenure, we place emphasis on performance and potential, making early investments in promising individuals. 86% of the management committee is internally groomed talent and 66% of the Zonal Executive Committee is internally groomed talent

Commitment to Representation

Currently, cis-women represent 35.2% of our workforce, positioning us as a leader in the industry in this regard. We celebrate the achievements of our women leaders, with 2 serving on the GPL Management Committee and 12 as Profit & Loss Leaders. In achieving LGBTQIA+ and persons with disabilities (PwD) representation, we are making significant progress. Presently, we have 105 LGBTQIA+ employees and 41 PwDs.

Cis Women:

In 2023, we made a bold and public commitmentto achieve 35% cis-women representation across our organisation by the end of FY 24-25 — a goal we called 35 before 25.

Enabling the Shift: Sustained Action

Our achievement is the result of consistent, thoughtful interventions that focused on both representation and retention

• A special focus was placed on Women Attrition, with weekly calls involving all zonal teams. These discussions dentified resignation triggers early and enabled timely, corrective actions.

• As an outcome, we achieved a 6-percentage-point reduction in regretted attrition among women — from 19% last year to 13% year-to-date.

• 24% of regretted resignations were successfully reversed, underscoring the impact of timely and empathetic interventions

• Gender sensitisation programmes and inclusive leadership workshops helped embed an inclusive mindset throughout the organisation

Our West-East zone inspired us by setting a benchmark: were so thrilled to share that weve achieved 50% gender diversity in our West-East Zone — a first for GPL and a landmark moment for the Indian Real Estate industry.

One of the key drivers behind this success was WEZs Masked CV initiative, aimed at eliminating unconscious bias during hiring. Personal identifiers were removed from resumes, and profiles were rebranded with neutral IDs before being shared with hiring managers, ensuring that short listing decisions were based purely on skills and experience.

This approach led to a significant improvement in hiring diversity across functions, making the process more equitable and inclusive.

In addition, 9 of our sites have achieved equal gender representation, reflecting true inclusivity at the ground level.

6 sites have been developed as model accessible sites, reinforcing our commitment to universal design and equity in workplace infrastructure.

At GPL, our goal is to cultivate an inclusive environment where every employee feels valued, irrespective of their race, ethnicity, gender, gender identity, sexual orientation, or disability

LGBTQ:

In August 2022, we launched a 9-month internship programme with the aim of onboarding and supporting LGBTQIA+ talent for roles within real estate, a traditionally underrepresented sector for queer people. These internships offer structured learning, mentorship, and hands-on exposure, preparing participants for long-term careers in real estate

We presently have 32 interns participating in our program, representing the 10th cohort.

We have had a 50% conversion rate with 33 interns having moved to contractual or full-time roles in functions like Sales, Operations, and Design. This has been vital towards enhancing LGBTQ+ representation in real estate, where such diversity has been rare.

The programme has directly contributed to building a pipeline of skilled LGBTQIA+talent within Godrej Properties, adding to the 190+ LGBTQIA+ employees across the organisation, positioning us as an inclusive and progressive workplace in real estate.

At Godrej Properties Limited (GPL), we celebrated the graduation of 14 interns from our Pride Internship Programme, with MD & CEO Gaurav Pandey and CHRO Megha Goel felicitating the graduates, strengthening our commitment to building a more inclusive workplace.

Agile, Decentralised Operating Model

In the last few years, we have made agility a core focus of our operating model. We have designed our operations to be mostly site-based, with 66% of our employees working at the site level. To support this, we have increasingly decentralised decision-making at the last mile.

Campus

We are committed to bringing fresh talent into the industry and the Indian corporate world. The ACER and Summersault Internship (launched in FY 23-24) programmes are the foundation of our early careers strategy, designed to attract, assess, and rapidly elevate top talent from Indias leading engineering and post-graduate institutes to take up Project Leadership Team (PLT) roles

Program Structure and Impact

• 4-stage, multi-method selection process combines technical and cognitive assessments, real-world case challenges, video pitches, and rigorous interviews— ensuring only the most capable, well-rounded talent joins the organisation.

We launched Project Pathmaker in April 2024 to help analyse and map job roles in ways that make the workplace more equitable for people with disabilities. The project was developed in collaboration with Enable India - an NGO focused on facilitating employment opportunities for persons with disabilities.

Using the Red-Amber-Green (RAG) mapping system, we evaluated ten roles across four functions to do any accessibility check for various needs in the workplace of people with disabilities. We conducted a comprehensive task-level analysis of each role, breaking down responsibilities to evaluate their accessibility for individuals with diverse disabilities.

Beyond job fitment approaches, we also explored job-carving possibilities for roles with limited direct fitment. We also identified barriers in roles requiring mobility or physical presence, such as civil execution and sustenance sales. This project has helped GPL set an example for hiring practices in the real estate sector and has strengthened organisational readiness to hire and integrate talent from PwD communities in core functions.

• 70+ campuses engaged nationwide, drawing in 6,000+ applicants and culminating in over 800 interviews across 7 core functions: Operations, Sales, Customer Centricity, HR, Design, Legal, and Finance.

• Sector-first Case Challenge: Launched in 70+ institutions, empowering students to solve real business problems; 6 national winners will present at Godrej One in July 2025, spotlighting innovation and practical thinking

• Ready to Perform (RTP) Framework: Deployed for Sales & Customer Centricity, this certification has reduced timeto business impact by up to 50%; -120 ACERs certified; the top 25 Sales ACERs contributed a combined ~Rs200 crore in business value.

• RTP for Operations set for launch in FY 25-26, extending accelerated capability-building to additiona business functions.

• Early Engagement: 233 ACERs onboarded via virtual orientation, enabling stronger pre-joining connect and ensuring a seamless culture immersion, with further in- person immersion planned for July 2025.

Gallop & Gurukul: Leadership Acceleration

The Gallop and Gurukul programmes are the cornerstone of our business leadership pipeline, bringing in the best from Indias top B-Schools and immersing them in real- world, cross-functional business challenges. The vision of Gallop program is to build talent which takes up functional and managerial leadership roles via accelerated and diverse career experiences.

Programme Structure and Impact:

• Gallop: Full time Managerial Leadership program journey for high-potential Tier 1 B-School graduates. Gallopers begin with 12-month stint-based, with focused capability- building, performance reviews, and executive mentorship. -11% of Gallop alumni have reached Level 3+ leadership roles—including 2 of 4 current Zonal CEOs—validating the programs success in accelerating internal mobility and leadership readiness.

• Gurukul: Two-month intensive internship, serving as a feeder into Gallop. Interns are selected through the engaging LOUD case competition and pitch challenge, ensuring a strong pipeline of business-ready talent.

• Expanded Outreach: 12 premier B-Schools activated, with new partnerships forged at IIM Kozhikode and IIM Mumbai in FY 24-25.

• Multi-functional Leadership: Tracks offered in S&M, P&L, HR, and (for the first time in FY 24-25) Operations, ensuring depth and breadth in leadership exposure.

• Functional Masterclasses: 5 masterclasses delivered by senior leaders at top institutes (IIM Indore, IIM Mumbai, SPJIMR, SIBM, SCMHRD, IIM Kozhikode), enhancing sector awareness and industry readiness; program NPS exceeded 80+.

• Senior Leadership Engagement: 60+ leaders (Level 3+) directly participated in hiring, masterclasses, and mentorship, demonstrating organisational commitment to nurturing future leaders.

Learning & Development

At GPL, we envision a world where growth knows no limits. Every challenge is seen as an opportunity to push beyond limits and reach ones fullest potential. Launched in 2023, Alchemy holds a bold vision designed to unlock the true potential of our employees and drive our collective vision of quantum growth at GPL.

It is crafted to inspire, empower, and enable, offering transformative learning experiences that prepare every GPLite for a brighter future. Our specialised academies cover Operations, Sales, and Customer Centricity, alongside forward-thinking programmes in Leadership, Al, and Sustainability.

Alchemy is dedicated to driving holistic excellence, grounded in the GPL Codes. Whether we are building on our strengths or embracing new challenges, theres something here for everyone to learn, share, and grow.

Alchemy stands on four key pillars that form the foundation of this growth journey:

1. Business Academy is the gateway to build functional mastery, honing expertise, and fostering an innovation- first mindset. These academies empower us to craft a competitive edge for ourselves and the organisation, driving precision, impact, and sector-leading talent.

2. Leadership Academy is designed to shape our future leaders who balance people, profit, and the planet. Through immersive, purpose-driven learning experiences, the academy helps our leaders become grounded in trust, responsibility, and growth.

3. Alchemy Next Academy prepares us to deliver exponential innovation using Artificial Intelligence and create future-friendly homes in a tech- driven, sustainable world by cultivating forward- thinking leadership.

4. Alchemy Foundation Academy helps integrate the new incoming talent seamlessly into GPLs spirit and systems. It aligns them with our purpose, build capabilities, and set them up for success from day one through learning and mentorship.

Since its inception, Alchemy has empowered over 3,600 learners through 29 impactful programmes. With a clear mission to reach every GPLite by FY 25-26, were making bold strides towards a future-ready GPL.

Employee Well- Being

1. Hybrid Work

We have maintained our flexible work policy post- COVID by adopting a hybrid in-office model. We recognise the advantages of remote work, including the ability for individuals to prioritise their holistic well-being and enhance productivity through focused work. However, we also acknowledge the importance of in-person interactions for fostering impactful collaborations and conversations.

2. Mental Health Support

Our Employee Assistance Programme provides confidential mental wellness support through a team of expert counsellors, available round the clock. Additionally, we have partnered with Inner Hour, a mental health platform, to offer self-help tools and confidential mental wellness sessions for employees and their families. Our focus is on assisting employees in managing personal and work-related concerns, empowering them to navigate sensitive situations both within and outside the workplace effectively.

3. Unlimited Sick Leave

We remain committed to offering 100% trust-based sick leave to all employees, allowing them to access sick leave whenever necessary based on their needs.

4. Harmony Hours

We have specific hours (8PM-8AM) in the workday where employees must avoid any kind of two-way official communication (meetings, calls, mails, texts). This was done to enable individuals to have focused time for themselves and their families.

5. Amber - Employee Listening

We utilise Amber, a Smart HR assistant which interacts with employees on various touchpoints with employees to continuously hear feedback from them & same is utilised by HR team to resolve issues faced by employees in day to day working.

6. Culture Of Recognition

We firmly believe in the power of recognition to enhance strategic clarity among our team members. It serves to underscore the organisational significance of key focus areas and exemplary behaviours. Through esteemed platforms such as the Spot Recognition scheme, Quarterly Regional awards, and Annual GPL Legends Awards, we honour and acknowledge employees who consistently demonstrate outstanding performance and embody our core values.

Recognising the importance of acknowledgment, weve also introduced the OneGPL awards to further motivate our employees. However, its worth noting that the GPL Legends Awards stand as our pinnacle national recognition platform. Reserved for celebrating the most significant achievements of the previous fiscal year, this prestigious award honours the exceptional contributions of ourtop performers.

Threats, Risks and Concerns

1. Industry Cyclicality

The Inherent cyclical nature of the real estate market, which can be influenced by various macroeconomic factors, changes in governmental policies, fluctuations in supply and demand dynamics, availability of consumer financing, and market liquidity. We have strategically structured our business model to mitigate these risks by diversifying through owned projects, joint ventures, residential platforms, and development management services across India. However, any future significant downturn in industry and the overall investment climate may adversely impact business.

2. Statutory Approvals

In the operational landscape of the Indian real estate sector, regulatory oversight from central, state, and local governments plays a pivotal role. Compliance with a plethora of laws and regulations, encompassing land acquisition, property transfer, registration, and land usage policies, is imperative for real estate developers. Notably, the regulatory framework varies significantly across different states. At present, several projects within our portfolio are in their initial planning phases, where the timely acquisition of approvals holds paramount importance. Any potential delays in obtaining these approvals may necessitate re- evaluation and adjustment of projecttimelines.

3. Climate Change- Threats and Challenges for Real Estate

Sector

The real estate industry in India is currently confronting significant shifts attributed to the impacts of climate change, with expectations of heightened intensity in the forthcoming years. These shifts present a spectrum of challenges and risks, broadly categorised into two main types: Physical and Transitional. Physical risks encompass both acute and chronic effects of climate change, including infrastructure damage at construction sites, disruptions to logistics routes, and decreased workforce efficiency due to heatwaves. On the other hand, transitional risks emerge from the transition towards a low-carbon economy, manifesting across four key categories: reputational, market, technology, and policy. In our management analysis, we have outlined a summary of pertinent physical and transitional risks that bear relevance to our firms operations. As extreme weather events increase in frequency and severity, real estate leaders across the globe are ramping up efforts to better understand and mitigate the impact of climate- related hazards on assets

A summary of relevant physical and transitional risks material to the firm are listed below

Nature of Risk	Material Risk	Description
Transition Risks	Increasing regulatory and policy pressure	The sector faces impacts from increasing regulation and new policies, including stricter building standards, carbon pricing, and additional reporting requirements. These changes are expected to shape operational strategies and decision-making processes within the industry.
	Cost of indirect emissions	Increasing costs associated with carbon-intensive building materials will necessitate a revision of our approach to construction, refurbishment, and demolition activities. While we may not have direct control over these emissions, our influence can mitigate their magnitude. As sustainability becomes paramount, we must adapt our strategies to minimise environmental impact and manage construction costs effectively
	Shifting market preferences	As climate change awareness escalates, tenants and buyers increasingly demand emissions reduction efforts from the real estate sector This shift in preferences towards high-efficiency buildings with renewable energy sources presents new risks for the industry.
	Change in investor sentiment	Shifting investor preferences toward climate-conscious assets pose a riskto portfolios lacking clear decarbonisation strategies, potentially impacting capital access and valuations.
	Reputation risk	Inadequate climate action may damage our reputation among stakeholders, leading to loss of trust, reduced market competitiveness, and potential exclusion from sustainability-focused investment portfolios.
Physical Risks	Sea level rise and coastal flooding (Acute)	As sea levels continue to rise, coastal flooding events will occur with greater frequency and intensity, leading to heightened property damage and elevated expenses for repair and maintenance.
	Inland flooding (Acute)	Inland flooding poses a significant physical riskto real estate assets, potentially leading to property damage, operational disruptions, and increased insurance costs
	Extreme storms and wind (Acute)	Extreme storms and high winds pose physical risks during construction, potentially causing project delays, material damage, and increased costs
	Subsidence (Acute)	Given the evolving profile of real estate holdings, an increasing number of properties are projected to face heightened subsidence risk in the coming years, posing a significant threat to structural integrity and long-term asset performance.
	Heat and water stress (Chronic)	As temperatures continue to rise, buildings will face heightened cooling demands, resulting in elevated operational expenses. Additionally, escalating water stress will drive up operating costs through increased water rates, necessitating enhanced water efficiency measures and compliance with stringent water usage regulations.

Additionally, climate change also offers some opportunities for the real estate sector to manage these risks and grow in a sustained manner. The most relevant opportunities for

GPL are:

• Energy management of real estate assets: Cl mate change presents a strategic opportunity for real estate companies to enhance portfolio resilience through advanced energy management. The 2022 energy crisis and evolving carbon markets underscore the value of precise energy demand mapping. By adopting sustainable energy solutions and aligning with regulations such as the Energy Conservation (Amendment) Bill, forward- looking developers can reduce operational costs, exceed compliance standards, and strengthen the long-term value and sustainability of their assets.

• Sustainable building materials and efficiency measures: To ensure long-term asset value and regulatory alignment, GPL integrates sustainable building practices across the asset lifecycle. This includes the use of low-carbon materials and energy-efficienttechnologies such as sensor-based lighting systems. These measures not only drive operational cost savings but also position assets to meet evolving standards, including the redefined Energy Conservation and Sustainable Building Code and updates to the National Building Code of India

• Environmental and social stewardship: Embedding strong environmental and social practices, such as achieving Zero Waste to Landfill, enhances the long-term value and resilience of our assets. By fostering harmony between our developments, local ecosystems, and communities, we enable inclusive growth while aligning with evolving sustainability expectations.

Outlook

The global economic outlook for FY 25-26 is marked by heightened uncertainty. Escalating trade tensions, tariff wars, and increasing protectionism have weighed heavily on trade and investment flows. These developments have prompted downward revisions in global growth projections, with investor sentiment dampened by geopolitical volatility and weakening cross-border cooperation. However, as per a report by the World Bank, India remains a bright spot - projected to grow at 6.3% in FY26.

Amidst this challenging global environment, India is emerging as a net beneficiary. The global shift in supply chains, driven by a need to diversify manufacturing away from China, has opened up substantial opportunities for India, supported by its competitive labour costs, improving infrastructure, expanding production capabilities, and large, English-speaking workforce. Crude oil prices have also declined in recent months, offering macroeconomic tailwinds for India as a net importer and helping ease inflationary pressures. These factors are boosting domestic consumption, containing input costs and maintaining fiscal stability, reinforcing Indias position as a bright spot in an otherwise subdued global landscape.

Against this backdrop, Indias growth outlook remains resilient. Strong domestic demand, a dynamic services sector, and a gradual revival in private sector investment continue to anchor economic momentum. Government- led initiatives, such as increased capital expenditure on infrastructure, the PLI schemes to boost manufacturing, and the accelerated formalisation of the economy through digital platforms, are expected to yield long-term productivity gains.

The Union Budget FY 25-26 reinforces this positive outlook by prioritising urban infrastructure and affordable housing. It introduces several enabling measures, including enhanced tax incentives for homebuyers, higher TDS thresholds on rental income, and additional income-tax rebates. These initiatives are poised to stimulate the real estate sector, generate employment, and catalyse growth across ancillary industries.

According to World Bank, India is projected to grow by 6.3% in FY 25-26, retaining its position as the fastest- growing major economy in the world. This growth trajectory underscores Indias emergence as a stable, scalable, and investment-friendly economy.

In this evolving economic context, the real estate sector is poised for structural growth. The contribution of real estate to Indias GDP is set to rise significantly in the coming years, reflecting its critical role in employment generation, capital formation, and urban development. With policy support, demographic tailwinds and growing investor confidence, the sector is undergoing a structural and sustained transformation.

At Godrej Properties, this macro environment aligns well with our trajectory. Having demonstrated strong performance over the last three to four years, we are well-positioned to capitalise on emerging opportunities. Our strategy, grounded in disciplined growth, customer- centricity and sustainability ensures that we remain at the forefront of Indias real estate evolution—creating long-term value for all stakeholders.

Key Financial Ratios (Basis Consolidated Financial Statements)

In accordance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company is required to give details of significant changes (Change of 25% or more as compared to the immediately previous financial year) in key sector specific financial ratios.

Ratios	2025	2024	Definition	Explanation
Trade Receivables Turnover	11.13	5.79	Trade Receivables Turnover = Revenue from Operations/Average Trade Receivables	Increased mainly on account of increase in revenue recognised due to completion of performance obligation during the current year.
Inventory Turnover	0.11	0.08	Inventory Turnover = (Cost of Material Consumed + Changes in inventories of finished goods and construction work in-progress) / Average Inventory
Interest Coverage ratio	1.92	1.53	Interest Coverage Ratio = Earning before interest, taxes, depreciation and amortisation expenses / Finance Costs (excludes interest accounted on customer advance)	Increase mainly on account of increase in EBITDA on account of revenue recognised on completion of projects and increase in other income during the year
Current ratio	1.51	1.43	Current Ratio = Current Assets / Current Liabilities
Net Debt equity ratio	0.19	0.52	Net Debt-Equity Ratio = (Current Borrowing + Non-current Borrowing - Cash and Bank Balances - Fixed Deposits - Liquid Investments) /Total Equity (excludes non-controlling interest)	Decreased mainly on account of increase in equity and cash surplus due to equity raised durmg the year through QIP and profits recognised during the year, which is partially offset by increase in debt during the year
Operating Profit Margin	31.5%	31.5%	Earnings before interest, taxes, depreciation amortisation expenses and interest included in cost of sales /Total Income including Share of profit / (loss) of joint ventures and associate (net of tax)
EBITDA %	28.8%	27.4%	Earnings before interest, taxes, depreciation and amortisation expenses/Total Income including Share of profit / (loss) of joint ventures and associate (net of tax)
Net profit margin	204%	16.6%	Profit for the year attributable to equity holders of the parent /Total Income including Share of profit / (loss) of joint ventures and associate (net of tax)
Return on net worth	10.3%	7.5%	Profit / (Loss) for the year / Average Equity	Increased due to increase in profits recognised on completion on projects and increase in other income during the yea r