Hazoor Multi Projects Ltd Management Discussions

GLOBAL ECONOMY OVERVIEW

In CY2024, the global economy demonstrated notable resilience despite uneven momentum across regions and sectors, registering a growth rate of 3.3%, according to the International Monetary Fund s (IMF) World Economic Outlook. Headline inflation moderated to 5.8% in CY2024, moving closer to central bank targets and prompting the first round of policy rate cuts in major advanced economies. Labour markets remained relatively tight, with unemployment near historical lows, while real household incomes improved due to strong nominal wage growth and easing price pressures.

However, private consumption remained subdued amid fragile consumer sentiment and elevated macroeconomic uncertainty. Rising geopolitical tensions particularly in Eastern Europe and the Middle East disrupted global trade, investment flows, and financial markets, casting a shadow over business confidence and long-term capital allocation decisions across sectors, including real estate.

Outlook for CY2025 and beyond

The global economy enters CY2025 at a delicate inflection point. While inflationary pressures have eased, rising protectionism evident in the escalating tariff measures between major economies has pushed effective global tariff levels to a century-high, posing risks to international trade and capital mobility.

Inflation and policy dynamics

Global headline inflation is projected to average 4.3% in CY2025, easing further to 3.6% in CY2026. While advanced economies face upward revisions in inflation estimates, emerging markets are expected to benefit from relatively stable price conditions. In this context, central banks are likely to adopt a cautious monetary stance, balancing support for economic growth with the imperative to anchor inflation expectations.

Monetary policy direction will play a pivotal role in shaping the global real estate environment. Potential easing of interest rates may improve financing conditions, stimulate housing demand, and revive investor appetite in commercial real estate. Conversely, persistent trade disruptions, volatile commodity prices, and climate-related shocks could drive up construction costs and delay new project launches.

INDIAN ECONOMY

Amid global uncertainties, India s economic fundamentals remain firmly anchored. Infrastructure expansion, robust real estate activity, and rapid digitalization 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 further supported domestic consumption.

In FY 2024 25, India recorded a GDP growth rate of 6.5%, underpinned by a recovery in rural demand, sustained Government investment in infrastructure, and continued buoyancy in the services sector. According to the World Bank, India is expected to remain resilient, with projected growth of 6.3% in FY 2025 26, led by strong domestic demand, a dynamic services 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 2018 19 along with a narrowing fiscal deficit, a manageable current account position, and healthy foreign exchange reserves. These fundamentals continued to bolster investor confidence. The Reserve Bank of India s calibrated monetary stance, including two repo rate cuts of 25 basis points each in February and April 2025, signalled a shift toward a pro-growth approach while maintaining inflation discipline.

INDUSTRY CONTEXT

India s real estate sector continues to mirror the broader optimism surrounding the country s economic progress and future potential. According to the IMF s World Economic Outlook (April 2025), India s GDP has more than doubled to approximately USD 4.19 trillion, up from USD 2 trillion in 2014, propelling the nation from the 10th to the 5th-largest economy globally. India is now on course to become the third-largest economy by FY 2030 31, with an expected long-term growth trajectory of around 6.7% per annum.

This momentum is underpinned by a confluence of structural drivers, including an expanding middle class, rapid urbanisation, rising disposable incomes, accelerated digital adoption, and ongoing economic reforms. These macroeconomic fundamentals have translated into increased demand for quality residential, commercial, and industrial real estate across urban and semi-urban areas.

Flagship Government initiatives such as the Smart Cities Mission, Housing for All, and the Real Estate (Regulation and Development) Act (RERA) have significantly strengthened regulatory oversight, improved transparency, and enhanced investor confidence across the sector. These policy measures are gradually formalizing the real estate market, leading to greater compliance, better risk management, and more sustainable growth.

Real estate remains a key pillar of India s economic engine, contributing significantly to GDP and employment generation. According to Knight Frank, the Indian real estate sector is expected to grow from USD 300 billion in CY2024 to approximately USD 650 billion by CY2025, and is projected to reach USD 1 trillion by 2030, with a potential to scale up to USD 5.8 trillion by 2047, making it one of the largest global real estate markets.

The sector s contribution extends well beyond physical infrastructure it is deeply interlinked with over 200 allied industries, including cement, steel, building materials, logistics, banking, and consumer goods. These forward and backward linkages amplify its multiplier effect on the economy and employment.

Sustained demand across the residential, commercial, retail, logistics, and industrial segments, along with the continued expansion of Indias corporate footprint, startup ecosystem, and services-driven economy, underscores the sector s robust long-term outlook. As India advances towards more inclusive, sustainable, and technology-enabled urban development, real estate will remain a central enabler shaping modern cities, generating livelihoods, and creating the built environment necessary to support the aspirations of a rapidly transforming population.

Economic resilience driving housing demand

India s 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 India s housing demand.

Policy reforms strengthening affordability

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

Urbanisation and infrastructure expansion

India s accelerated urbanisation is being matched by a significant increase in infrastructure investments. The government s capital expenditure on infrastructure has more than doubled from Rs. 5 lakh crore in FY 21-22 to Rs. 11.11 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.

Technology redefining real estate

The integration of artificial intelligence (AI), digital platforms, and virtual engagement tools is transforming the way real estate is designed, marketed and transacted. AI-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 annualized 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. 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 H1 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.

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 emphasize infrastructure development and housing while providing a boost to disposable income to drive consumption, setting a favorable 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 centers.

Reviving stalled projects

It announced a second Special Window for Affordable and Mid-Income Housing (SWAMIH) fund, with an allocation of Rs. 15,000 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 liquidity in the sector, this initiative is expected to attract more investments into this space.

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 H19,784 crore, up 36% from H13,670 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 Government s 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 H1 lakh crore Urban Challenge Fund will further incentivise cities to boost urban development by raising funds through municipal bonds and Public Private Partnerships.

BUDGET 2025-26 KEY TAKEAWAYS FOR CLIMATE ACTION

The Union Budget 2025 26 reinforces India s climate commitment by significantly increasing allocations for renewable energy, green hydrogen, and electric mobility. The Ministry of New and Renewable Energy received 26,549 crore, supporting initiatives like PM Surya Ghar and the Green Hydrogen Mission. Major investments were also made in nuclear energy, solar PV manufacturing, battery storage, and the Green Energy Corridor, reflecting an integrated clean energy push. Additionally, green industrial measures such as the expansion of the specialty steel PLI scheme and the 25,000 crore Maritime Development Fund aim to promote low-carbon manufacturing.

In the transport sector, funding for electric vehicles and e-buses saw a notable rise, with key incentives for domestic EV battery manufacturing. However, the discontinuation of the Electric Mobility Promotion Scheme and lack of targeted measures for high-emission sectors like cement and agriculture highlight areas needing further policy attention. Overall, while the Budget marks progress in clean energy and mobility, broader decarbonisation strategies remain essential to meet India s long-term climate goals.

Climate change and real estate sector

The Indian real estate sector, a vital contributor to GDP and employment, is increasingly exposed to the growing impacts of climate change. Rising temperatures, erratic monsoons, flooding, and extreme weather events are disrupting construction timelines, increasing operational costs, and reshaping housing and commercial demand. These effects present both physical and transitional risks ranging from direct asset damage to regulatory and financial shifts associated with the transition to a low-carbon economy. Long-term changes such as sea-level rise, and acute events like floods, significantly affect property values, insurance, and project viability.

Buildings account for approximately one-third of global energy system emissions, with a sharp rise in operational energy demand driven by urbanisation and rising cooling needs. Despite growing awareness, efforts to decarbonise the built environment remain limited by dependence on fossil fuels, weak energy efficiency mandates, and low investment in sustainable construction. As India targets net-zero emissions by 2070, the sector must integrate climate resilience, adopt green technologies, and align with evolving ESG expectations.

Investor sentiment is also shifting, with increasing preference for climate-aligned developments. Green building certifications, climate-smart design, and policy frameworks supporting sustainability are gaining traction. For the sector to remain competitive and resilient, it must embrace innovation, collaborate with technology and policy partners, and embed sustainability into all aspects of planning, construction, and asset management.

OPPORTUNITIES

Housing Demand

A combination of economic growth, increasing income levels, and the perception that housing prices are stabilizing has led to a notable uptick in the demand for homes. This trend is evident as potential buyers, previously on the sidelines, are now entering the market as first-time homeowners or existing home owners looking for larger spaces. The shift 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, characterized by its highly fragmented nature, has been undergoing a significant consolidation phase for several years. This consolidation has been accelerated by various factors, including the 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

The segment of affordable housing remains a pivotal area for developers and a primary focus for the government. As per the new Union budget, a housing for Middle Class scheme is to be launched to encourage the middle class to buy their own houses. The Pradhan Mantri Awas Yojana (PMAY) is close to achieving 3 crore houses, 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 AI-driven chatbots are increasingly being employed to offer tailored services to 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 AND CHALLENGES

Regulatory Hurdles

The real estate industry is subject to extensive regulation, and any negative adjustments in governmental policies or the regulatory framework can negatively influence the sector s 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 company s 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 maintained an accommodative stance 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

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

COMPANY S PERFORMANCE AND PROJECTS

The Company had entered in the road construction projects in the past year, the Company has made profit of Rs. 1409.35 Lakhs in FY 2024-25 in accordance with Ind-AS as explained further in significant accounting policies.

FINANCIAL REVIEW

Revenue & Profitability

The Gross Revenue from operations for F.Y 2024-25 was placed at Rs. 40021.39 lakhs (Previous Year Rs. 49460.13 lakhs). The Profit after tax stood at Rs. 1409.35 lakhs (Previous year was Rs. 5487.50 lakhs).

Balance Sheet

Your Company s Balance Sheet as on March 31, 2025 reflected with a net worth of 41298.10 Lakhs. The Company does have 5628.08 Lakhs debt as on March 31, 2025.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIO:*

1. CURRENT RATIO

A surge in short-term borrowings and other current liabilities, without matching growth in current assets, has negatively impacted the current ratio.

The Interest Service Coverage Ratio declined during the year due to an increase in interest costs and a simultaneous reduction in operating profitability.

*Standalone Figures

(In view of nature of business and various components of financial statements, other Ratios as mentioned in Schedule III are not applicable to the Company or has no relevance or not practical to be calculated. Auditor has already mentioned the reasons for variance more than 25% in audit report).

Risk management

The Company has implemented a robust risk management framework to identify and mitigate operational and business risks. The senior management and risk management committee regularly review major risk areas. Comprehensive policies and procedures are in place to identify, mitigate and monitor risks at various levels. The company conducts a comprehensive risk review through an external agency, which provides recommendations to the Board on risk management strategies and possible controls.

Human resources

We are committed to creating a positive, collaborative and productive environment in which our people are enabled to perform their best and are healthy, resilient and happy at work. Engage with our employees to drive commitment and have the right talent in the right roles at the right time , Embrace a culture that empowers employees, attracts talent, provides growth and creates future Leaders with right attitude , Evolve by adapting to technology, automation and new ways of work, workplace and work life. We continue to keep our commitment of providing transparency on people and executing a robust Annual Performance Management Process.

Our approach to attracting, retaining and developing talent has evolved over the years. At the heart of our strategy is strong leadership, based on trust, collaboration and empathy. We understand that learning is not a set path, in fact it is more unstructured than ever before. We have adapted a learning culture to ensure our people take the time to learn independently and from each other and the company has created a learning ecosystem that ensures 100% compliance to all mandatory Learning courses apart from giving the option to employees to undergo courses / attend seminars required for work execution.

Health, Safety and Well Being continues to be our focus and structured wellness programs run throughout the year to keep our employees and their families happy and healthy. This creates a safe and welcoming working environment and through various well-planned initiatives we promote a culture of wellness within the company which serves to improve the physical and mental health of employees.

In our people strategy it is clear that we want to pivot to the " New " . We have an opportunity to evolve our mindset from asking our people to work on something, to encouraging our people to work towards something linked to a clear sense of belonging, goal and purpose.

INTERNAL CONTROL SYSTEM AND ADEQUACY:

The internal financial controls for all the significant processes have been identified based on the risk evaluation in the business process and same have been embedded/ implemented in the business processes. These processes and controls have been documented. Professional internal audit firms review the systems and processes of the Company and provide independent and professional opinion on the internal control systems. The Audit Committee of the Board reviews the internal audit reports, adequacy of internal controls and risk management framework periodically. These systems provide reasonable assurance that our internal financial controls are designed effectively and are operating as intended.

OUTLOOK

The global economic landscape for FY 2025 26 remains uncertain due to rising trade tensions, protectionist policies, and geopolitical volatility. However, India continues to stand out as a resilient economy, with the World Bank projecting GDP growth of 6.3%, driven by strong domestic demand, policy support, and increasing investor confidence. Structural shifts in global supply chains, moderating crude prices, and sustained infrastructure investments further reinforce India s position as a stable and scalable growth destination.

Against this backdrop, Hazoor Multi Projects Limited is well-positioned to capitalize on emerging opportunities in infrastructure and real estate development. The Union Budget 2025 26 s focus on capital expenditure, affordable housing, and urban infrastructure directly aligns with our business priorities. With a strong order book, proven execution capabilities, and a commitment to quality and sustainability, Hazoor is poised for steady growth. Our strategic focus remains on expanding our presence across key geographies, enhancing operational efficiency, and delivering long-term value to all stakeholders.

CAUTIONARY STATEMENT:

Certain statement in the management discussion and analysis may be forward looking within the meaning of applicable securities law and regulations and actual results may differ materially from those expressed or implied. Factors that would make differences to Company s operations include competition, price realization, currency fluctuations, regulatory issues, changes in government policies and regulations, tax regimes, economic development within India and the countries in which the Company conducts business and other incidental factors.

Place: Mumbai	For the Board of Director	For the Board of Director
Date: 28.08.2025	Hazoor Multi Projects Limited	Hazoor Multi Projects Limited
	Sd/-	Sd/-
	Radheshyam Laxmanrao Mopalwar	Pawankumar Nathmal Mallawat
	Chairperson & Managing Director	Executive Director
	DIN: 02604676	DIN: 01538111