Homesfy Realty Ltd Management Discussions

Indian Economy

India retained its position as the fastest growing major economy during FY26. Real Gross Domestic Product growth is estimated at 7.4% for the year, an acceleration from 6.5% in FY25, supported by resilient domestic consumption, a sustained public capital expenditure programme, and a recovery in private investment. Growth was broad based through the year, with the economy expanding 7.8% in the first quarter and 8.2% in the second quarter, the latter its fastest pace in several years.

The inflation environment remained benign. Headline consumer price inflation eased to an eight-year low of 1.6% in July 2025 before firming in the closing months, and stayed within the Reserve Bank of Indias tolerance band of 2% to 6% through the year. The moderation was driven by a prolonged decline in food prices and was reinforced by the rationalisation of Goods and Services Tax rates from September 2025 into a simplified two-rate structure, which lowered the tax incidence on a range of essential goods. A revised consumer price index series, with 2024 as the base year, was introduced in February 2026.

In response to contained inflation, the Reserve Bank of India continued its accommodative approach, reducing the policy repo rate over the course of the year. Gross Goods and Services Tax collections rose to approximately =?22 lakh crore for the year, an increase of about 8% over FY25, reflecting the continued formalisation of the economy and a widening taxpayer base. The financial, real estate and professional services segment grew 10.2% in the second quarter, underlining the strength of services-led demand.

Growth for FY27 is projected in the range of 6.8% to 7.2%, with domestic demand, ongoing structural reforms and a stable monetary environment expected to underpin steady medium-term expansion, even as globaltrade conditions remain uncertain.

Indian Real Estate Industry

Indias real estate sector remains integral to the national economy, supporting more than 250 ancillary industries and contributing to employment generation at a significant scale. With around 18% of the countrys workforce engaged in the sector, it stands as one of the largest employment creators after agriculture. Independent market research estimates the Indian real estate market at approximately USD 0.66 trillion, contributing close to 7.3% of national output, and projects it to reach around USD 1.04 trillion by 2030 at a compound annual growth rate of about 9.5%, with its share of output rising over the longer term.

The residential segment is the primary addressable market for a broker and aggregator. Independent research estimates the Indian residential real estate market at approximately USD 399 to 400 billion in 2025, with a forecast compound annual growth rate of about 9% to 10% to 2030. Demand is broad based, fuelled by a rapidly urbanising population, rising disposable incomes, greater aspirations for quality housing, and strong growth in the commercial segment. Government policy has played a pivotal role in driving growth and formalisation, through the focus on affordable housing, the Smart Cities Mission, tax relief on home loans, and the Real Estate (Regulation and Development) Act, which has improved transparency and safeguarded buyers interests.

Source: Mordor Intelligence; IBEF.

Residential Real Estate

The residential market remained resilientthrough 2025, although demand became increasingly differentiated across ticket sizes and cities. Housing sales across the major cities moderated on a volume basis, even as total sales value rose, supported by a continued shift towards higher-value homes and selective price increases. Sales of homes priced below =f50 lakh and in the =f50 lakh to 1 crore band declined, while homes priced above =fl crore recorded growth, reflecting a clear premiumisation of demand. Mumbai remained the largest market in absolute terms, accounting for close to 28% of sales across the major cities.

Affordability improved across most leading cities during 2025, aided by lower home loan rates following the Reserve Bank of Indias cumulative repo rate reductions and by rising incomes. Average residential prices continued to firm, with the strongest appreciation recorded in the National Capital Region, Bengaluru and Hyderabad, driven largely by the expanding share of luxury and ultra-luxury supply. This combination of firm pricing, improving affordability and premiumisation shaped a more P selective but well-supported demand environment.

Source: ANAROCK Research; Knight Frank India; Reserve Bank of India House Price Index, 2025-26.

Commercial Real Estate

Indias commercial real estate sector continued to demonstrate resilience and outperformance when measured against global benchmarks. Growth in information technology and business process management, the establishment of Global Capability Centres, and the expansion of co-working and flexible office space sustained healthy absorption in office and industrial assets. The continued development of technology, manufacturing and services industries, along with increased foreign capital participation, is expected to support absorption levels, while demand for logistics infrastructure and data centres is projected to accelerate in tandem with the digital transformation of the economy.

Outlook

The prospects for Indias real estate sector remain robust and broad based. Rapid urbanisation, rising income levels, strong demographics and supportive government policy are set to underpin consistent and sustainable growth. Demand is expected to extend across affordable, mid- price and luxury housing, reinforced by potential in smaller towns and upcoming urban centres, even as premiumisation continues to shape the composition of sales in the leading metropolitan markets.

The Real Estate Broking Industry

The real estate broking industry is witnessing a foundational transformation, shaped by regulatory clarity, market formalisation, technological innovation, and rising consumer expectations. As demand strengthens across both residential and commercial segments, brokerage firms are evolving rapidly to stay relevant in a more transparent and service-oriented ecosystem. The shift from fragmented, commission-driven models to structured, technology-enabled and multi-service platforms is evident across urban and semi-urban markets.

KEYTRENDS

Rise of Formalisation and Regulatory Oversight

The implementation of the Real Estate (Regulation and Development) Act has mandated agent registration, periodic renewal and adherence to compliance norms across states. Brokers are now regarded as regulated professionals under the supervision of state authorities, which has built trust among homebuyers, developers and institutional clients, and is expected to attract skilled talent and institutional partnerships into the ecosystem.

Digital Transformation and Technology Integration

From artificial-intelligence-driven property recommendations to immersive virtual tours, digital tools are becoming integral to property transactions. Brokers are leveraging customer relationship management platforms, video consultations and mobile-first engagement to improve response times and client satisfaction, while integrations such as instant home loan approvals and online documentation streamline the buyer journey. Firms that embrace a technology-first approach are best placed to scale efficiently.

Shift from pure brokerage to data-led advisory

As clients become more discerning and informed, the brokers role is evolving from deal-making to insight-driven advisory. Firms increasingly rely on market intelligence, behavioural analytics and transaction data to guide clients on pricing, investment timing and project selection, and developers rely on brokers for feasibility studies, absorption forecasts and micro-market mapping.

Platform-led aggregation and consolidation

The industry is witnessing a shift towards platform-led aggregation, where digital-first firms combine centralised lead generation, proprietary data analytics and standardised customer journeys to create scale advantages. Well- capitalised players are expanding through partnerships, leading to consolidation across leading markets, and the landscape is likely to be increasingly dominated by professionally run, brand-led broker networks that offer both reach and reliability.

OPPORTUNITIES

• Scalable growth and network expansion, as platform-led models allow brokers to serve multiple geographies and client segments without proportionate physical branch expansion, keeping operational costs in check.

• Improved conversion and client experience, as access to verified inventory from multiple sources increases the likelihood of a property match, resulting in faster deal closure and higher client satisfaction.

• Professionalisation through technology, as integrated documentation, lead tracking and centralised dashboards standardise operations and reinforce client trust.

• Entry into institutional and premium segments, as co- broking platforms provide the visibility and operational rigour required to engage with developers and institutional clients on higher-value transactions.

THREATS AND CHALLENGES

• Cautious buyer sentiment and delayed project launches can temper transaction momentum in specific micro- markets within a given period.

• Uneven digital adoption, as agents in smaller cities continue to rely on informal processes, creating inconsistency in service delivery.

• Absence of standardised protocols for commission sharing, documentation and dispute resolution across the industry.

• Fragmentation of platforms and limited awareness of the long-term benefits of co-broking models, particularly in smaller markets.

Company Overview

Homesfy Realty Limited is one of Indias leading real estate broking companies and the first real estate brokerage firm listed on the NSE Emerge platform. Incorporated in 2011 and headquartered in Thane, Maharashtra, the Company operates at the intersection of technology, scale and service, serving as a critical enabler in the home-buying value chain by connecting developers, brokers and homebuyers through structured processes and technology-led platforms.

The Companys core broking business is anchored by a team of in-house agents who manage the complete transaction lifecycle, from lead generation and property discovery to site visits and deal closure. This is complemented by the Companys proprietary technology platform, mymagnet.io, which aggregates third-party brokers under a single digital ecosystem, providing them with access to inventory, workflow tools, customer relationship management capabilities and transparent commission structures, thereby creating a scalable and asset-light model of market penetration. The Company also operates a growing home loans vertical that provides financing solutions through partnerships with banks and non- banking financial institutions, supporting buyers across the affordability spectrum.

With a presence in the Mumbai Metropolitan Region, Pune, Bengaluru and Hyderabad, the Company is strategically positioned in Indias high-demand urban corridors. Its emphasis on technology, standardisation and customer experience is aligned with the ongoing formalisation of the real estate sector, positioning it as a trusted partner in the organised residential real estate ecosystem.

FY26 Performance Review

FY26 was a year of deliberate consolidation and operational transformation for Homesfy. The Company chose to prioritise quality of business, operating discipline and the strengthening of internal processes over pure scale. This transition weighed on near-term financial performance but is intended to build a more resilient and sustainable business. Gross Transaction Value stood at T2,347 crore, a 3% increase over FY25, supported by a higher average ticket size, which rose 15% year on year to approximately T1.47 crore per home. The core direct broking business demonstrated resilience, with direct Gross Transaction Value growing 17% to T2,005 crore and direct gross bookings rising 2% to 1,363.

The mymagnet channel business recorded Gross Transaction Value of T343 crore, a decline of 40%, with 226 gross bookings, as the Company consciously prioritised higher-quality business and operating discipline over volume. The home loans vertical disbursed loans worth T341 crore during the year, an increase of 26% over FY25, reflecting growing adoption among end-users and the depth of the Companys network of lending partners.

Revenue from operations was T40.32 crore, compared with T58.67 crore in FY25. While the operational business recorded steady growth, the moderation in reported revenue was primarily attributable to lower recognition of unbilled revenue, following the strengthening of the Companys internal validation processes. This is confirmed by the issuance of an unqualified audit opinion by the auditors. This reflects a more conservative and disciplined approach to revenue recognition and does not affect the underlying operating performance of the business. On the profitability front, EBITDA stood at T(20.44) crore against T1.56 crore in FY25, and Profit After Tax was T(20.49) crore against T1.38 crore in the previous year. The reduction in profitability reflected the lower revenue recognition majorly due to strengthen internal validation process, together with continued investment in technology, salesforce productivity and leadership depth undertaken as part of the Companys transformation programme.

GROSS TRANSACTION VALUE AND OPERATING SNAPSHOT (FY26)

PARTICULARS	FY26	FY25	CHANGE
Gross Transaction Value (T crore)	2,347	2,280	+3%
GTV - Direct (T crore)	2,005	1,714	+17%
GTV - mymagnet (T crore)	343	572	(40%)
Home loans disbursed (T crore)	341	271	+26%
Total gross bookings (no.)	1,589	1,766	(10%)
Direct gross bookings (no.)	1,363	1,336	+2%
mymagnet gross bookings (no.)	226	435	(48%)
Average ticket size per home (T crore)	1.47	1.28	+15%

CONSOLIDATED FINANCIAL PERFORMANCE

PARTICULARS	FY26	FY25
Revenue from Operations	40.32	58.67
Employee Expenses	26.73	28.27
Other Expenses	33.67	28.84
Exceptional and Prior Period Items	0.36	-
EBITDA	(20.44)	1.56
EBITDA Margin (%)	(51%)	3%
Other Income	1.65	1.39
Depreciation	1.80	0.85
Finance Cost	0.02	0.20
Profit Before Tax	(20.61)	1.90
Tax Expenses	(0.12)	0.52
Profit After Tax	(20.49)	1.38
PAT Margin (%)	(51%)	2%

Composition of Revenue from Operations. The reduction in reported revenue is best understood through the movement in billed and unbilled revenue. Billed revenue was T45.30 crore against T51.22 crore in FY25, unbilled revenue was T10.77 crore against T15.27 crore, and unbilled revenue converted into billed revenue was T(15.75) crore against T(7.82) crore. The reduction in unbilled revenue recognition is primarily driven by strengthened internal validation processes.

REVENUE FROM OPERATIONS CRORE)	FY26	FY25
Billed revenue	45.30	51.22
Unbilled revenue	10.77	15.27
Unbilled revenue converted into billed revenue	(15.75)	(7.82)
Total	40.32	58.67

Risks and Concerns

The Company operates in a cyclical industry, and its performance is closely linked to the health of the residential real estate market. A slowdown in housing demand, a sustained rise in interest rates, or a correction in property prices could reduce transaction volumes and brokerage income. As a large share of business is concentrated in the Mumbai Metropolitan Region, any adverse development in this market may have a disproportionate impact on results.

The Company also depends on the availability of saleable inventory from developers and on the continued participation of channel partners on the mymagnet platform. Delays in project launches, weaker developer relationships, or lower partner engagement could affect the transaction pipeline. Slower adoption of technology in smaller markets remains a further constraint.

Regulatory changes, including amendments to the Real Estate (Regulation and Development) Act, taxation, and compliance norms, could raise the cost of doing business. The Company is also exposed to competition from both organised and unorganised brokers, and to the challenge of attracting and retaining skilled talent.

The Company seeks to mitigate these risks through diversification across markets and service lines, disciplined cost management, strengthened internal processes, and continued investment in technology and people.

Key Financial Ratios

PARTICULARS	NUMERATOR/ DENOMINATOR	FY26	FY25	% CHANGE	REASON
Current Ratio	Current Assets	3.03	5.94	-49%	The Current Ratio stood at 3.03 times as at March 31, 2026, compared with 5.94 times as at March 31, 2025. The movement primarily reflects the optimisation of the Companys working capital position during the year. The ratio continues to remain at a healthy level, reflecting the Companys adequate liquidity position and ability to meet its short-term obligations.
	Current Liabilities
Debt-Equity Ratio	Total Debts	0.00	0.00	0%	-
	Equity
Debt Service	Earning available for Debt Service	(280)	45	-722%	The Debt Service Coverage Ratio stood at negative 280 times as at March 31, 2026, compared with 45 times in the previous year. The movement is primarily attributable to the change in earnings during the year, while the Company continues to maintain a relatively low level of debt obligations. The Companys low leverage profile provides flexibility to support its business strategy and future growth initiatives. The adverse movement is also influenced by the relatively low level of debt service obligations, which magnifies the ratio movement when earnings decline.
Coverage Ratio	Interest + Installments
Return on Equity Ratio/Return on Net Worth Ratio	Profit after Tax	-51.26%	3.07%	-1,770%	The Return on Equity stood at -51.26% in FY26 compared with 3.07% in FY25. The movement primarily reflects the earnings profile for the year and the Companys continued investment in improving operating efficiencies, optimising its cost structure and enhancing returns as the benefits of these initiatives scale up. While these changes may take time to fully reflect in financial outcomes, we believe they are important for building a more scalable, resilient, and profitable business over the long term.
	Average Shareholders Equity
Inventory turnover ratio	Total Trunover	-	-	-	-
	Average Inventories
Trade receivables turnover ratio	Total Turnover	2.02	2.28	-11%	-
	Average Account Receivable
Trade payables turnover ratio	Total Purchases	11.42	14.05	-19%	-
	Average Account Payable
Net capital turnover ratio	Total Turnover	1.60	1.27	26%	The Net Capital Turnover Ratio improved to 1.60 times in FY26 from 1.27 times in FY25. The improvement reflects more efficient utilisation of the Companys net working capital and demonstrates the Companys focus on maintaining an efficient capital structure. The higher ratio indicates improved turnover generated relative to the net capital deployed in the business.
	Net Working Capital
Net profit ratio	Net Profit	-50.80%	2.34%	-2,271%	The Net Profit Ratio stood at -50.80% in FY26 compared with 2.34% in FY25. The movement primarily reflects the Companys business transition during the year, including investments towards strengthening its operating capabilities and business platform. During FY26, the Company continued to focus on building a scalable operating model, with the expectation that the benefits of these initiatives will accrue progressively as business volumes and operating leverage improve.
	Total Turnover
Return on Capital employed	EBIT	-53.88%	2.58%	-2,188%	The Return on Capital Employed stood at -53.88% in FY26 compared with 2.58% in FY25. The movement is primarily attributable to the earnings profile during the year and the investments undertaken to strengthen the Companys operating platform and future growth capabilities. The Company remains focused on improving asset utilisation, operational efficiency and internal validation processes, which is expected to support improved returns on capital employed over the medium term.
	Average Capital Employed [Net worth + Borrowings + DTL (net)]
Return on investment	Return on Investment	-39.52%	2.51%	-1,675%	The Return on Investment stood at -39.52% in FY26 compared with 2.51% in FY25. The movement primarily reflects the earnings profile for the year and the Companys continued investment in business development and strengthening its operating capabilities. The Company remains focused on improving the productivity of its investments and enhancing returns through greater scale, operating efficiencies and improved business performance.
	Total Investment
Interest Coverage Ratio	EBIT	-1,61,937%	634%	-25,638%	The Interest Coverage Ratio stood at -161937% as at March 31, 2026, compared with 634% in the previous year. The movement is primarily attributable to the change in earnings during the year, while the Company continues to maintain a relatively low level of interest obligations. The Companys low interest profile provides flexibility to support its business strategy and future growth initiatives. The adverse movement is also influenced by the relatively low level of interest obligations, which magnifies the ratio movement when earnings decline.
	Interest
Operating Profit Margin	EBIT	-53.42%	1.97%	-2,814%	The Operating Profit Ratio stood at -53.42% in FY26 compared with 1.97% in FY25. The movement primarily reflects the Companys business transition during the year, including investments towards strengthening its operating capabilities and business platform. During FY26, the Company continued to focus on building a scalable operating model, with the expectation that the benefits of these initiatives will accrue progressively as business volumes and operating leverage improve.
	Revenue

Outlook

The year marked the beginning of a deeper operational transformation at Homesfy. Across functions, the Company increased its focus on productivity, conversion efficiency, accountability, technology integration and stronger operating rhythms. While these changes may take time to be fully reflected in financial outcomes, the Company believes they are important for building a more scalable, resilient and profitable business over the long term.

Entering FY27, the Companys strategic direction is centred on strengthening operational efficiency, internal process re-engineering and productivity across the organisation. Investments in customer relationship management systems, funnel optimisation and disciplined execution are expected to support operating leverage and improve lead-to-sale conversions over time. Through a balanced approach spanning direct broking and channel aggregation via mymagnet, the Company remains focused on building a more scalable, resilient and profitable business.

Human Resources and Industrial Relations

Homesfy Realty Limited regards its workforce as the foundation of its continued progress. The organisation draws strength from a diverse team of professionals whose expertise spans real estate, engineering, business, marketing and design, allowing for interdisciplinary collaboration and a unified pursuit of excellence. The Company maintains a well-structured recruitment framework, complemented by robust incentive mechanisms and significant investment in comprehensive training programmes.

During FY26, the Company sharpened its focus on salesforce productivity and a leaner, higher-performing organisation, with the share of sales roles in the workforce rising to 76%. Employee development remained a central focus, supported by an open-door culture and dedicated initiatives including the Young Leaders Programme and the Be Your Own Boss scheme. The year also saw the Company strengthen its leadership depth with senior additions across human resources, sales and corporate strategy.

PEOPLE METRICS	FY26	FY25
Employees (as at 31 March)	363	452
Men (%)	73%	69%
Women (%)	27%	31%
Sales roles as share of workforce (%)	76%	63%

Internal Control Systems and Their Adequacy

The Company has in place robust internal control systems suited to its size and industry. These systems and procedures are designed to provide reasonable assurance regarding the effectiveness and efficiency of operations, the reliability of financial reporting, and strict compliance with all applicable laws and regulations. Safeguarding the Companys assets remains a fundamental priority, with established measures aimed at preventing and detecting both errors and fraudulent activities. The internal team, supported by the Audit Committee, closely monitors operations and promptly informs the Board of any significant findings. Ongoing risk assessment and the implementation of mitigation strategies ensure that the internal control framework remains both effective and responsive to emerging challenges. During the year, the Company further strengthened its internal validation processes, which is reflected in the more conservative recognition of unbilled revenue.

Cautionary Statement

Certain statements in this report regarding the Companys objectives, projections, estimates, expectations or predictions may constitute forward-looking statements under applicable securities laws and regulations. While these expectations are based on reasonable assumptions, actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand and supply, price conditions in the domestic and overseas markets, changes in government regulations, tax laws and other statutes, and other incidental factors. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements on the basis of any subsequent developments, information or events.