Grovy India Ltd Management Discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

We submit herewith our Management Discussion & Analysis Report on the Companys Business for the year ended 31st March, 2026. We have attempted to include on all specified matters to the extent relevant or within limits that in our opinion are imposed by the Companys competitive position.

ECONOMY OVERVIEW

India maintained its position as one of the fastest-growing major economies during FY 2025-26. According to the First Advance Estimates released by the National Statistics Office (NSO), Indias real GDP is estimated to grow by 7.4% in FY 2025-26, compared to 6.5% in FY 2024-25. Growth was primarily driven by robust performance in the services sector, sustained government capital expenditure, rising private consumption, and continued infrastructure investments. The Financial, Real Estate and Professional Services segment remained among the strongest-performing sectors of the economy.

The Governments continued emphasis on infrastructure development, urban modernization, logistics enhancement, digital transformation, and housing initiatives has strengthened economic activity across sectors. Strong macroeconomic fundamentals, stable banking conditions, healthy foreign exchange reserves, and increasing domestic demand continue to support Indias long-term growth trajectory. Despite global geopolitical uncertainties and inflationary pressures in several economies, India remains well-positioned to achieve sustainable growth and advance its vision of becoming a developed economy by 2047.

INDUSTRY OVERVIEW

The Indian real estate sector witnessed another year of strong growth during FY 2025-26, particularly in the premium and luxury housing segments. The sector continued to benefit from increasing urbanisation, rising household incomes, favourable demographics, infrastructure expansion, and growing investor confidence.

A notable trend during FY 2025-26 was the increasing concentration of demand in premium and luxury residential developments. Across major metropolitan markets, including Delhi-NCR, affluent homebuyers, entrepreneurs, senior professionals, business owners and Non-Resident Indians (NRIs) continued to demonstrate strong appetite for high-quality residential assets. Industry reports indicate that premium housing remained one of the fastest-growing segments despite moderation in certain affordable and mid-income categories.

Institutional participation in the sector remained robust through Alternative Investment Funds (AIFs), private equity investments and structured financing platforms. Developers increasingly focused on redevelopment opportunities, luxury housing, sustainable construction practices, and technology-enabled customer experiences.

The real estate sector continues to be one of the largest employment generators in India and is expected to play a critical role in the countrys economic growth, urban development and infrastructure expansion over the coming decade.

OUR TARGET MARKET

Grovy India Limited continues to focus on the ultra-luxury residential segment in South Delhi and Lutyens Delhi, two of the most prestigious and supply-constrained residential markets in India. These markets have consistently demonstrated strong demand from high-net-worth individuals (HNIs), business owners, professionals, expatriates and Non-Resident Indians (NRIs), making them among the most resilient and value-accretive real estate destinations in the country.

The primary differentiator of these locations remains the acute scarcity of developable land. Unlike emerging peripheral markets where fresh land supply is available, South Delhi and Lutyens Delhi are mature urban centres with limited opportunities for new development. This supply constraint, coupled with sustained demand for premium residences, continues to support long-term appreciation in land and property values.

The luxury housing segment in Delhi has witnessed significant growth during FY 2025-26, driven by increasing wealth creation, rising aspirations for larger living spaces, and growing preference for premium lifestyle amenities. Redevelopment of old residential properties has emerged as a key growth driver in South Delhi, creating opportunities for modern luxury residences equipped with contemporary architecture, advanced security systems, energy-efficient features, smart home technologies and enhanced lifestyle offerings.

Several factors continue to accelerate redevelopment activity across these locations:

• Aging Housing Stock: A large proportion of residential buildings in South Delhi were constructed several decades ago and are increasingly being redeveloped into modern premium residences.

• Favourable Regulatory Framework: Progressive building regulations, enhanced Floor Area Ratio (FAR) norms, provision of elevators, stilt parking and improved building specifications have significantly improved redevelopment viability.

• Changing Consumer Preferences: Affluent homebuyers increasingly prefer modern residences with superior design, sustainability features, wellness amenities and smart technologies.

• Infrastructure Enhancement: Continued improvements in urban infrastructure, metro connectivity, road networks and civic amenities have further strengthened the attractiveness of these locations.

• Growing HNI and NRI Demand: Increasing participation by domestic high-net-worth individuals and overseas Indians has strengthened demand for luxury residential assets in prime Delhi locations.

Historically, South Delhi and Lutyens Delhi have exhibited remarkable resilience across economic and real estate cycles. The combination of limited supply, premium location advantage, established social infrastructure and strong end-user demand has enabled these markets to maintain their attractiveness even during periods of broader market volatility.

Why Grovy?

Grovys business strategy is centred on creating boutique luxury developments that combine architectural excellence, premium quality, sustainability and contemporary living standards. The Company possesses deep market knowledge, long-standing stakeholder relationships and extensive execution experience within its chosen markets.

With redevelopment opportunities expanding, regulatory support improving and demand for luxury housing remaining robust, Grovy is well positioned to capitalize on the evolving dynamics of South Delhi and Lutyens Delhi. The Company remains committed to creating high-value residential developments that deliver superior customer experience while generating sustainable long-term value for shareholders.

STATE OF AFFAIRS OF THE COMPANY

Grovy India Limited, incorporated in 1985, is engaged in the business of real estate development, infrastructure development and consultancy services. Over the years, the Company has established a strong presence in the Delhi region through the successful execution of premium residential and commercial projects, earning the confidence of customers, investors and business associates.

The Company continues to focus on the development of boutique luxury residential projects in prime locations of South Delhi and Lutyens Delhi. Leveraging its extensive industry experience, strong execution capabilities and indepth understanding of local market dynamics, the Company remains committed to delivering high-quality developments that meet the evolving aspirations of modern homebuyers.

During the year under review, the Company continued to strengthen its project pipeline, improve operational efficiencies and pursue strategic growth opportunities in its core areas of operation. The Companys experienced management team, supported by qualified professionals across engineering, architecture, planning and finance functions, continues to drive innovation, quality and customer satisfaction across all business activities.

The Company remains focused on prudent financial management, efficient capital allocation and sustainable business practices, thereby creating long-term value for its shareholders and other stakeholders.

FUTURE OUTLOOK

The outlook for the South Delhi real estate sector remains positive, supported by favourable demographics, increasing disposable incomes, infrastructure development and sustained demand for premium housing. The luxury residential segment, particularly in established urban markets, continues to witness strong demand from end-users as well as investors seeking quality assets with long-term appreciation potential.

Grovy India Limited remains well-positioned to benefit from these favourable industry trends through its strategic focus on the redevelopment and development of premium residential projects in South Delhi and Lutyens Delhi. The Company continues to evaluate growth opportunities while maintaining a disciplined approach towards project selection, execution and risk management.

The Company is also focused on adopting modern technologies and digital solutions to enhance operational efficiency, customer engagement and project management capabilities. Sustainability remains an integral part of the Companys development philosophy, with increasing emphasis on energy-efficient designs, environmentally responsible construction practices and smart infrastructure solutions.

Further, the Companys strategic association with Golden Growth Fund, a Category-II Alternative Investment Fund (AIF), is expected to strengthen its ability to pursue attractive development opportunities and support future business expansion.

While macroeconomic and industry-specific challenges may continue to persist, the management remains confident about the long-term prospects of the Company and its ability to create sustainable value through focused execution, financial discipline and customer-centric development.

OPERATIONAL REVIEW

During the financial year ended 31st March, 2026, the Company continued to focus on its core business segments comprising real estate development and investment activities. The Company remained committed to operational excellence, timely execution of projects and effective utilization of resources, enabling it to navigate the evolving business environment efficiently.

The Company continued to strengthen its market presence in the Delhi region through its emphasis on premium residential developments, while maintaining a disciplined approach towards investments and financial management. Operational efficiencies, cost optimization measures and prudent business strategies contributed positively to the overall performance of the Company during the year.

The Company reported a Profit After Tax (PAT) of Rs.289.81 Lakhs during FY 2025-26 as compared to Rs.179.43 Lakhs in the previous financial year.

The management remains optimistic about the Companys future prospects and expects continued growth supported by favourable market conditions, a strong project pipeline, strategic partnerships and ongoing efforts towards operational excellence.

There were no material changes or commitments affecting the financial position of the Company which occurred between the end of the financial year and the date of this Report.

BUSINESS SEGMENTS

Your Company is engaged into the Businesses listed as under:

A. Construction Business:

Residential Segment:

Your company, Grovy India Limited has completed their projects and sustains credibility among its customers by providing possession on time and quality of work to all of them.

Location	Area	Status	Type	Delivery
East of Kailash	10,000 sq. ft	Completed	Residential	—
Greater Kailash 1	20,000 sq. ft	Completed	Residential	—
Greater Kailash 1	10,000 sq. ft	Completed	Residential	—
Greater Kailash 1	22,000 sq. ft	Completed	Residential	—
Greater Kailash 1	15,000 sq. ft	Completed	Residential	Q4 (25-26)
Greater Kailash 2	15,000 sq. ft	On Going	Residential	Q3 (26-27)
Greater Kailash 1	15,000 sq. ft	On Going	Residential	Q4 (27-28)
Greater Kailash 1	20,000 sq. ft	On Going	Residential	Q4 (26-27)
Greater Kailash 1	20,000 sq. ft	On Going	Residential	Q3 (27-28)
Hauz Khas	15,000 sq. ft	On Going	Residential	Q1 (27-28)
Hauz Khas	15,000 sq. ft	On Going	Residential	Q3 (27-28)
Anand Niketan	17,000 sq. ft	On Going	Residential	Q3 (26-27)
Neeti Bagh	36,000 sq. ft	On Going	Residential	Q3 (27-28)
Defence Colony	15,000 sq. ft	Pipeline	Residential	TBD
Defence Colony	15,000 sq. ft	Pipeline	Residential	TBD
Gulmohar Park	20,000 sq. ft	Pipeline	Residential	TBD
Safdarjung Enclave	20,000 sq. ft	Pipeline	Residential	TBD

RESIDENTIAL PROJECTS

All posh colonies of south Delhi

KEY FINANCIAL RATIOS

Pursuant to Schedule V (B) to the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015

S.No.	Ratio	2025-26	2024-25
1.	Current ratio	1.52	1.87
2.	Debt Equity ratio	1.08	1.21
3.	Debt Service Coverage Ratio	7.85	4.82
4.	Return on equity	0.13	0.09
5.	Inventory Turnover ratio	0.68	0.84
6.	Trade Receivable turnover ratio	14.56	9.18
7.	Net capital turnover ratio	1.34	1.15
8.	Net profit ratio	0.09	0.07
9.	Return on Capital Employed	0.19	0.10
10.	Return on investment	1.55	1.63

ENVIRONMENT & SAFETY

We are conscious of the need of the environmentally clean and safe operations. Our policy requires all operations to be conducted in way so as to ensure safety of all concerned, compliance of statutory and industrial requirement for environment protection and conservation of natural re- sources.

HUMAN RESOURES AND INDUSTRIAL RELATION

Employees are the backbone of the Company and crucial for the organizations continued success. The Company strives to foster a conducive environment to attract and retain the best talent and ensure employee welfare with its robust HR policies and practices. To boost employee capabilities, the Company conducts numerous skill development and learning programmes. The Company draws on a wide range of information, qualifications, skills, professional experience, culture, geography, and industry understanding. The Company gives utmost importance to health and safety management and conducts mock trainings and drills on a regular basis to ensure preparedness.

INTERNAL CONTROL SYSTEMS

The Company has established an adequate internal control framework commensurate with the nature, size and complexity of its business operations. The internal control systems are designed to ensure operational efficiency, safeguarding of assets, reliability of financial reporting, compliance with applicable laws and regulations, and effective risk management.

Documented policies, standard operating procedures and approval mechanisms are in place across key business processes. The Company has implemented appropriate financial and operational controls, supported by a robust Management Information System (MIS), to facilitate timely monitoring and informed decision-making.

Independent internal auditors periodically review the adequacy and effectiveness of internal controls and submit their observations and recommendations to the Audit Committee. The Audit Committee regularly reviews the internal audit findings, implementation status of corrective actions and overall effectiveness of the control environment. Based on such reviews, the management believes that the Companys internal control systems are adequate and operating effectively.

RISKS AND CONCERNS

The Company operates in an environment that is subject to various internal and external risks which may impact business performance. The Board and management have adopted a structured risk management approach aimed at identifying, assessing, monitoring and mitigating potential risks on an ongoing basis.

Some of the key risks and challenges faced by the Company include:

• Economic slowdowns, inflationary pressures and adverse macroeconomic developments affecting consumer sentiment and investment activity.

• Changes in government policies, taxation laws, regulatory frameworks and real estate-related compliance requirements.

• Delays in statutory approvals, permissions and regulatory clearances for project execution.

• Fluctuations in the prices and availability of construction materials, labour and other critical resources.

• Changes in interest rates and liquidity conditions impacting borrowing costs and housing demand.

• Increased competition within the real estate sector and changing customer preferences.

• Market-related risks associated with the Companys investment activities and fluctuations in capital markets.

The Company continuously evaluates these risks and undertakes appropriate mitigation measures through prudent planning, regulatory compliance, financial discipline, project monitoring and strategic decision-making processes.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis Report describing the Companys objectives, expectations, estimates, projections, plans, strategies or predictions may constitute "forward-looking statements" within the meaning of applicable laws and regulations.

These statements are based on certain assumptions and expectations of future events and are subject to various risks, uncertainties and other factors which may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements. Important factors that may affect the Companys operations include changes in economic conditions, government policies and regulations, taxation laws, availability of financing, interest rate movements, market demand, competitive pressures and other factors beyond the Companys control.

The Company does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required under applicable laws and regulations.

For and on behalf of the board of directors of
Grovy India Limited
Sd/-	Sd/-
(Prakash Chand Jalan)	(Nishit Jalan)
Director	Whole-Time Director & CEO
DIN: 00475545	DIN:002964239
Date: 05.06.2026
Place: New Delhi