Kalpataru Ltd Management Discussions

Economy Overview

Global Economy

The global macroeconomic environment continues to reflect measured expansion, providing a stable, yet selective, backdrop for infrastructure and real asset-linked sectors. Global GDP grew by 3.4% in Calendar Year (CY) 2025 and is projected to moderate to 3.1% in CY 2026 indicating steady but constrained growth.

Advanced economies remain subdued, expanding at around 1.9%, reflecting persistent demand moderation. In contrast, emerging markets continue to anchor global growth, expanding by 4.4% in CY 2025 and expected to stabilise at around 4.2% by CY 2027. Asia remains the primary growth driver, led by Indias strong domestic demand and infrastructure investment, while Chinas growth is expected to moderate from 5.0% to 4.0% amid ongoing structural realignment. 1

Policy responsiveness and technological advancements have supported macroeconomic stability. However, the global environment remains vulnerable to geopolitical and trade-related risks. Heightened tensions in West Asia, particularly around strategic routes such as the Strait of Hormuz, have disrupted energy supply chains, resulting in oil price volatility and increasing input and logistics costs.

While countries are increasingly diversifying energy sources and strengthening supply chains, although uncertainty continues to weigh on trade flows, investment sentiment and overall economic stability.

Outlook

The medium-term outlook points to gradual stabilisation, with global growth expected to remain around 3.2% IN CY 2027. Advanced economies are likely to face continued demand-side constraints, keeping growth around 1.7% in CY 2027, while emerging markets are expected to maintain relative outperformance despite near-term moderation.

Asia is expected to remain central to global expansion, backed by strong domestic investment cycles in India and a more calibrated growth trajectory in China. Improving economic prospects in the Middle East and select emerging markets may support recovery towards CY 2027. However, the outlook remains sensitive to global financial conditions, geopolitical developments and the pace of global investment activity.

Indian Economy 2

India continues to strengthen its position as one of the fastest-growing major economies, creating a favourable demand environment for infrastructure-led sectors. GDP grew by 7.7% in FY 2025–26, compared to 7.1% in the previous year, supported by resilient rural demand, robust agricultural output and a gradual recovery in industrial activity. 3

Government-led initiatives, including the Production Linked Incentive (PLI) schemes, continue to drive manufacturing expansion, while the services sector remains a key contributor to growth. Sustained public investment in infrastructure, spanning transportation, urban development and energy, has enhanced order visibility and execution momentum across sectors.

Inflation remains well contained, with the Consumer Price Index (CPI) at 3.40% (revised 2024 base year), supporting purchasing power and demand across both urban and rural markets. 4 Policy measures, including income tax relief, GST rationalisation efforts and a supportive monetary stance are further aiding consumption and liquidity.

Indias increasing integration into global value chains, supported by ongoing trade engagement with key economies, is expected to boost exports and attract long-term investments. Concurrently, efforts to diversify crude oil sourcing and strengthen alternative supply channels are enhancing energy security and reducing external vulnerabilities.

Indias growth outlook remains robust, with GDP projected to grow by 6.6% in FY 2026–27, supported by sustained public capital expenditure and a gradual recovery in private consumption. 5

Outlook

Real Private Final Consumption Expenditure is expected to grow by around 7.0%, indicating improving demand conditions. Infrastructure development, urbanisation and energy transition initiatives are expected to remain key growth drivers over the medium term.

Structural reforms, including GST rationalisation, expansion of free trade agreements and continued focus on ease of doing business, are expected to enhance competitiveness and investment flows.

With inflation expected to remain moderate, the monetary environment is expected to stay supportive, facilitating credit growth and capital formation. While global uncertainties persist, strong domestic fundamentals position the economy for sustained, broad-based growth.

Industry Overview

India Real Estate Industry

Indias real estate sector has emerged as a key pillar of economic growth, supported by rapid urbanisation, rising quality housing demand and expanding commercial infrastructure. The sector continued to witness steady momentum across residential, commercial and industrial segments, driven by increasing homeownership, growth in global capability centres and rising demand for logistics and data infrastructure.

Regulatory reforms and policy support have enhanced transparency, strengthened buyer confidence and improved capital inflows. Initiatives in affordable housing and financing have broadened access across income segments. Additionally, increasing traction in Tier II and Tier III cities, coupled with technology adoption and sector formalisation, is transforming the sector into a more organised and scalable market.

Outlook

The sector is poised for long-term expansion, with its market size projected to reach 88 trillion by 2030 and 440–616 trillion by FY 2047. Indias urban population is expected to grow from about 543 million in FY 2025 to nearly 900 million by FY 2047, driving sustained demand for housing, commercial spaces and urban infrastructure.

Public infrastructure investments, industrial corridors and digital ecosystems are expected to unlock new growth corridors, particularly in emerging cities. Continued policy support, improved access to financing and increasing adoption of technology and sustainable construction practices are likely to enhance efficiency and scalability, positioning the sector as a key driver of long-term economic expansion and urban transformation. 6

As the Company assess the macroeconomic drivers of housing demand, the advent of Artificial Intelligence represents both a transitional challenge and a significant opportunity for the Indian workforce. The automation of routine white-collar tasks, particularly within the IT and BPO sectors, may introduce near-term friction in employment growth for certain segments. While the profile of the traditional homebuyer is evolving, the foundational aspiration for homeownership remains intact, supported by ongoing upskilling initiatives and the resilience of Indias domestic consumption story.

Mumbai Metropolitan Region (MMR)

The Mumbai Metropolitan Region remains the largest and most active residential market in the country, supported by strong demand, high-value transactions and sustained supply. The region continues to lead among major cities, driven by a clear shift towards premiumisation, reflected in rising ticket sizes and increased participation from high-income buyers.

MMR has also emerged as a dominant market in the luxury and ultra-luxury segments, supported by wealth creation, lifestyle upgrades and investor interest. This shift is evident in improving pricing power, larger unit configurations and a growing preference for high-quality developments.

Outlook

The outlook for MMR remains favourable, supported by infrastructure-led expansion, rising income levels and continued demand from both end-users and investors. Large-scale infrastructure development and improved connectivity are expected to unlock new micro-markets and enable more balanced regional growth beyond core locations.

Premium and luxury housing will likely remain key growth driver, supported by upgrade demand and increasing preference for amenity-rich developments. Society Redevelopments continue to be the primary source of new land in this region.

Pune Housing Market

The Pune residential market continues to demonstrate stable growth, supported by balanced demand across mid-income and premium segments and steady supply in key corridors. The market has witnessed sustained launch activity, with a notable increase in high-end and luxury development, reflecting evolving buyer preference towards larger, better-quality developments.

Key micro-markets, including the NH-4 Bypass and NorthEast and eastern corridors, remain active, supported by infrastructure developments such as metro expansion and ring road connectivity. Capital values have tended upward, driven by premiumisation and steady demand.

The market continues to be predominantly end-user driven, limiting speculative activity.

Despite short-term fluctuations in sales, underlying demand remain strong, supported by a growing employment base, a robust IT and manufacturing ecosystem and continued urbanisation, positioning Pune for sustained medium term growth.

Company overview

Kalpataru Limited is an integrated real estate developer with over five decades of experience and a strong lineage within the Kalpataru Group. The Company operates across the entire development lifecycle, including land acquisition, planning, execution & sales. With a primary focus on the Mumbai Metropolitan Region and Pune along with other select cities like Hyderabad & Nagpur, the Companys portfolio is predominantly residential, comprising premium high-rise developments, integrated townships and redevelopment projects. A balanced mix of owned and partnership-led developments supports a robust pipeline, providing steady visibility on growth and cash flows.

The Company places strong emphasis on design and build quality, focusing on efficient layouts, contemporary architecture and robust construction standards across its developments. Supported by collaborations with reputed design consultants and disciplined execution practices, this approach enables consistent delivery of high-quality projects, strengthens customer trust and supports premium positioning in key markets.

Key Financial Ratio

Ratio	FY26	FY25	Reason for Change in ratios
Debtors Turnover	5.80	3.81	Increase in ratio due to higher revenue and efficiency in collection as
			compared to the previous year.
Inventory Turnover	0.21	0.15	Increase in ratio due to higher revenue as compared to the previous year.
Interest Coverage Ratio	2.37	2.43	No major movement.
Current Ratio	1.53	1.49	Improvement in the ratio was mainly due to an increase in current assets
			during the year.
Net Debt Equity Ratio	1.99	3.79	Improvement in ratio due to repayment of borrowings and increase in
			shareholders\u2019 equity through issue of shares.
Operating Profit Margin (%)	0.20	0.21	No major movement as the operating profit margin remained almost
			consistent with the previous year.
Net Profit Margin (%)	0.02	0.01	Increase in ratio is due to increase in net profit earned as compared to
			the previous year.

Financial Metrics

in crore

Financial Metrics	FY26	FY25	FY24	FY23*
Revenue from operations	3,436	2,222	1,930	3,611
EBITDA	178	114	(68)	(61)
EBITDA margin (%)	5.2%	5.1%	(3.5)	(1.7)
Adjusted EBITDA	1,022	681	459	1,948
Adjusted EBITDA margin (%)	29.8	30.6	23.8	54.0
Net debt	8,106	9,310	9,983	9,227
Net debt to Equity (x)	2.0	3.8	10.1	7.7

* In FY23, 2,003 crore of revenue is from one-time sale of land parcels

Company Outlook

The Companys outlook remains supported by a strong project pipeline, sustained demand across key micro-markets and improving execution visibility. With a significant portion of ongoing developments nearing completion, the business is entering a phase of increased deliveries, which is expected to support revenue recognition, strengthen cash flow generation and enable a gradual reduction in leverage.

Demand momentum remains steady across core markets, including the Mumbai Metropolitan Region and Thane, with continued traction in both premium and mid-income segments. The Company remains focused on disciplined project selection in Residential space, with an increasing emphasis on joint ventures (JV), joint development agreements (JDA) and Society Redevelopment opportunities to enhance capital efficiency while maintaining margin thresholds.

Planned launches over the medium term, supported by a sizeable inventory of ongoing and forthcoming projects, provide visibility on future growth. This is further reinforced by steady pricing trends, operational execution and a calibrated approach to expansion.

Information Technology

The Company is purposefully accelerating its technology transformation, embedding intelligence across the enterprise, from foundational systems to individual ways of working. This reflects a deliberate strategic choice to position technology not as a support function, but as a core driver of competitive advantage across the real estate value chain.

With a significant portion of ongoing developments nearing completion, the business is entering a phase of increased deliveries, which is expected to support revenue recognition, strengthen cash flow generation and enable a gradual reduction in leverage.

Enterprise systems, including SAP, are continuously strengthened and integrated across finance, procurement, project costing and supply chain functions, ensuring real-time visibility and operational discipline at every level. The Company is actively transitioning its SAP landscape to a cloud-native architecture, unlocking continuous innovation cycles, embedded AI capabilities and a high-integrity data foundation that future intelligence layers can reliably build upon. Customer engagement platforms, including Salesforce, are being advanced with AI-driven lead scoring, intelligent nurturing and automated workflows, delivering a unified view of every customer interaction from enquiry through to post-sales service, and meaningfully improving conversion and retention outcomes.

Building on this strong core, the Company has embarked on co-developing and deploying AI use cases in partnership with a curated ecosystem of global and specialised technology companies. These initiatives span intelligent project monitoring, document automation, conversational AI at customer touchpoints and predictive insights, enabling faster and better-informed decisions across Sales, Construction, Procurement, Finance and Human Resources.

To reinforce a positive safety culture, a structured Reward & Recognition program has been implemented to acknowledge individuals and teams for exemplary safety performance, proactive hazard identification, and adherence to EHS practices. This initiative fosters greater engagement, accountability, and continuous improvement across all project sites.

From an ESG (Environmental, Social, and Governance) perspective, the Company is committed to responsible and sustainable business practices. Environmental stewardship is integrated into operations, social responsibility is demonstrated through employee welfare and community safety initiatives, and strong governance practices ensure transparency, compliance, and ethical conduct across all levels of the organisation.

From a social inclusion perspective, the Company is committed to promoting a safe, respectful, and inclusive workplace for all employees, including female workers. Equal opportunity practices are encouraged across all levels of the workforce, and necessary safety measures, facilities, and support systems are provided to ensure a secure working environment for women at project sites. The Company actively works towards enhancing gender diversity and fostering an inclusive culture aligned with its ESG commitments. The Company remains committed to worker welfare by providing essential facilities such as safe drinking water, sanitation, rest areas, and first-aid infrastructure, thereby ensuring a healthy, safe, and supportive working environment.

Corporate Social Responsibility

Kalpatarus Corporate Social Responsibility (CSR) initiatives are guided by a structured, holistic, and impact-driven approach to social development. Implemented through Kalpataru Foundation, the philanthropic arm of the Kalpataru Group, these initiatives leverage collaborative partnerships, community-led solutions, and the responsible deployment of resources to strengthen stakeholder trust, build social resilience, and contribute to inclusive growth aligned with the Companys vision of responsible and sustainable value creation.

Rooted in the philosophy of contributing meaningfully to society, Kalpatarus CSR framework is anchored across four strategic thematic pillars—Healthcare, Education (Project Prerna), Skill Development (Project Kaushal Vriddhi), and Environmental Sustainability (Project Kartavya). Each programme is thoughtfully designed to respond to genuine community needs through inclusive, participatory, and outcome-oriented interventions, ensuring the delivery of measurable and sustainable social impact.

Collectively, these initiatives strengthen access to essential services, promote social equity, and enhance the resilience and overall, well-being of vulnerable and marginalised communities.

Project Prerna – Education

Kalpatarus education initiatives under Project Prerna are closely aligned with the vision and guiding principles of the Government of Indias National Education Policy (NEP) 2020. The program follows a dual intervention approach i.e. community-based interventions and school-level interventions, each comprising a diverse portfolio of high-impact initiatives. These interventions focus on upgrading school infrastructure, strengthening drinking water, health, and hygiene facilities; enhancing experiential and digital learning ecosystems, bridging the digital divide and expanding access to quality education for children from underserved communities, also inculcating behaviour change of the future generation at large. Together, these efforts support improved learning outcomes, long-term academic attainment, and the holistic development of children.

Community Digital Education Centre

The initiative aims to bridge the digital divide in underserved communities by enhancing digital skills and fostering sustainable development in the low-income communities of Thane. The program aimed to provides accessible digital education to residents, addressing the significant gap in computer literacy. By offering comprehensive courses in essential computer skills and providing placement support, the digital centre facilitates personal and professional development.

The centre demonstrated continuous impact during FY 2025–26, successfully bridging the digital skills gap in underserved communities. Beyond training, the program adopted a holistic approach by integrating community mobilisation and student development initiatives, supported by strategic partnerships with institutions and industry stakeholders. Structured assessments, certification programs, and exposure to emerging domains such as AI, cybersecurity, etc to boost their confidence. In this academic year over 180 children benefit from this centre, enhancing their digital competencies and preparedness for future learning.

School Infrastructure Enhancement Programme

Kalpataru is committed to fostering enabling learning environments in government schools through targeted infrastructure development. Under this initiative, WAsH (Water, Sanitation & Hygiene) facilities were constructed, and this intervention aims to increase enrolment rates and improve learning outcomes. The provision of sanitation facilities has further supported hygiene and well-being among students. The construction of gender-segregated, child-friendly, and accessible toilets in schools, and also establishment of sustainable safe drinking water systems. The program also incorporates Teachers Training and Behaviour Change Communication (BCC) trainings. These initiatives aim to improve the overall learning environment for children.

The intervention involved the renovation and construction of separate toilet facilities for boys and girls, including the installation of WC units and urinals, provision and cleaning of drainage systems along with buckets, levelling and repair of tiles, and the addition of windows to improve ventilation. The programme benefitted 254 students across 6 Zilla Parishad schools in Karjat, ensuring adequate water flow in taps and flushing systems, and the creation and renovation of drinking water, handwashing areas, with separate spaces designated for drinking water. These improvements will contribute to a significant reduction in water-borne and hygiene-related diseases among beneficiaries, as well as a reduction in school absenteeism, particularly among girls, through improved sanitation and hygiene facilities. Additionally, behavioural change communication sessions on health and hygiene will be conducted for students to promote awareness and healthy practices.

Remedial Education Centre -Abhyasikas

Kalpataru supported the Abhyasikas, after-school remedial education programme in Varne and Palasdari villages near Karjat to strengthen academic outcomes and holistic development of first-generation learners from underserved communities. The initiative served primary and secondary students through structured learning, life-skills education, youth development sessions, and health, nutrition, and gender awareness activities. The Abhyasika programme delivered an average of 127 learning days per centre for primary and secondary students, achieving 100% coverage in the year.

The Student Support Programme enabled participation in state-level competitive examinations, while digital learning through the First in Math platform boosted in math problems solving. Additionally, the Nutritional Support Programme positively impacted attendance, enthusiasm, and parental engagement across both Abhyasikas.

Community participation, teacher capacity building, and parental outreach further strengthened programme impact, contributing to improved retention, reduced learning gaps, and increased educational resilience among rural first-generation learners.

Healthcare

Kalpatarus healthcare initiatives are aimed at strengthening access to affordable, basic, and quality medical services for marginalised and underserved communities. These interventions adopt a comprehensive approach encompassing preventive, promotive, and curative healthcare, with a strong focus on early diagnosis, timely treatment, and overall community well-being, thereby contributing to improved health outcomes and sustained health awareness at the grassroots level.

Access to Basic Quality Healthcare through Mobile Medical Units

A significant step towards enhancing healthcare access in the rural villages of Karjat has been the launch of Mobile Medical Units (MMUs), since 2024. These units provide doorstep primary healthcare services to marginalised and vulnerable populations, where the nearest health centre is 8 -10 kilometres away.

Operational across 18 villages in Karjat, Maharashtra, the MMU has benefited over 20,740 direct beneficiaries since its inception.

Women and geriatric population received medical care in regions with limited medical infrastructure, transport constraints, and high poverty levels, the project follows the ADCR model (Awareness, Diagnosis, Cure, and Referral) to promote preventive care, early diagnosis, and timely treatment.

The MMU project prioritises underprivileged and underserved populations, including women, children, men, and the elderly. The overarching objective of the initiative is to enhance healthcare accessibility, improve health outcomes, raise health awareness, and encourage proactive healthcare-seeking behaviour by delivering doorstep medical services to remote and rural communities of Karjat, Maharashtra. The services include preventive, promotive, and curative healthcare, free distribution of medicines, and mobile pathology services, thereby facilitating early detection and timely management of health conditions.

The MMU addressed nearly 30 types of ailments, with a focus on commonly reported conditions such as skin infections, respiratory tract infections, common cold, joint pain, hypertension, gastritis, diabetes, and sore throat.

Social and Emotional Learning (SEL) Programme in schools

The Social and Emotional Learning (SEL) programme aimed at creating safe, inclusive, and supportive learning environments was launched as a pilot across in 10 BMC (BrihanMumbai Municipal Corporation) schools. During the academic year, the program reached out to 1572 students through a total of 690 structured sessions. The curriculum covered five core SEL modules—Self-Awareness, Self-Management, Social Understanding, Relationship Skills, and Responsible Decision-Making.

The initiative led to observable positive outcomes, including improved emotional regulation, empathy, peer relationships, participation, and inclusive classroom behaviour.

Strong student attachment to facilitators and programme elements, positive teacher feedback, and high recall of concepts during assessments highlighted the programmes effectiveness and relevance. To reinforce learning beyond the classroom, interactive revision booklets were distributed across all schools in three age-appropriate versions, with appreciation from both students and educators. Observations from school visits further underscored the programmes impact in building integrity, assertiveness, negotiation skills, and peer-supported learning.

Project Kaushal Vriddhi

Kalpataru has established skill training centers in the slum communities of Thane & villages in Karjat to empower women and youth. The centers offer vocational training in tailoring, embroidery, food technology and digital skills with special focus on entrepreneurship development for women.

Skill Development Centre for Youth and Women

Kalpatarus Skill Development Centers in Slum community of Thane and the villages of Karjat focuses on training both youth and women, with the objective of enhancing employability, entrepreneurship, and financial independence. During the reporting period, the centers trained 464 youth across market-relevant courses including digital literacy, MS Office, Tally, Multi-Skill Technician, and Wireman trades, achieving 100% certification completion. Strengthening digital inclusion further. The programme was reinforced through strong community mobilisation, with 300+ youth counselled on career pathways and skill-based employment.

For women beneficiaries, the centers delivered focused skill training in tailoring, culinary arts, and product development, enabling income generation and livelihood opportunities. A total of 371 women were trained through robust outreach and door-to-door engagement. The culinary training emerged as a promising career pathway, witnessing growing participation and sustained interest. Beyond vocational skills, the centres function as enabling platforms that build confidence, encourage participation beyond traditional household roles, and promote sustainable livelihoods. Additionally, 40 beneficiaries were supported under the Entrepreneurship Development Programme (EDP) to facilitate enterprise creation and self-employment.

Project Kartavya

Environmental Awareness & Coastal Sustainability

In response to the growing threat of marine pollution and the urgent need to preserve coastal ecosystems, the programme is implemented as a sustained, community-driven environmental initiative focused on protecting coastlines from plastic waste while encouraging long-term behavioural change through citizen participation and awareness.

The project successfully conducted 104 beach clean-up drives across Prabhadevi & Silver Beach Juhu, mobilising 5,570 citizens who actively contributed to environmental conservation. These collective efforts led to the removal of 78,376 kgs of plastic waste from coastal areas, significantly reducing the risk of marine pollution and harm to biodiversity. Importantly, 31,278 kgs of the collected plastic waste was handed over to relevant authority to be recycled, reinforcing the projects commitment to sustainable and circular waste management practices.

The program operates on the belief that collective action and community ownership are key to achieving meaningful and lasting environmental impact. Each clean-up drive serves not only as a physical intervention but also as an awareness-building platform, educating participants about the consequences of improper waste disposal and encouraging the adoption of environmentally responsible behaviours in daily life.

For the past three years, this initiative has evolved into a strong community movement that promotes environmental stewardship, responsible waste management, and civic responsibility. By combining consistent on-ground action with awareness generation, it has contributed to cleaner beaches, increased public consciousness and a healthier coastal ecosystem.

The initiative demonstrates how sustained partnerships and citizen engagement can drive long-term environmental change for future generations.

Human Resources

The Companys people strategy was focused on building organisational capabilities that support long-term business growth, operational excellence and leadership continuity. During the year, employee strength expanded to over 1,900 employees in line with business requirements, supported by campus recruitment initiatives and management trainee programmes that strengthened the talent pipeline. The Company continued to invest in capability development through structured interventions, including Performance Management System (PMS) workshops, KMLP coaching programmes, leadership coaching sessions, Managers as Coaches initiatives and cross-functional collaboration workshops. These programmes were designed to enhance managerial effectiveness, leadership capabilities and organisational collaboration while reinforcing a performance-oriented and learning-driven culture.

Employee engagement and workplace well-being remained key priorities during the year. The Company undertook various initiatives to strengthen employee connect and encourage an inclusive work environment, including cultural celebrations, sporting events, team-building activities and cross-functional engagement programmes. Preventive healthcare initiatives, including Photon CT health assessments, were conducted to promote employee well-being across offices and project sites. The Company also continued its efforts to advance diversity and inclusion while encouraging a collaborative and growth-oriented work environment.

Risk Analysis

The Company operates in a competitive and evolving environment, with exposure to various internal and external risks that may impact financial performance, operational efficiency and strategic execution. To address these uncertainties, the Company has established structured frameworks for systematic identification, assessment and mitigation in alignment with evolving industry dynamics and regulatory requirements.

Risk	Description	Mitigation Strategy
	The real estate sector is sensitive to	Focus on established micro-markets with strong
	economic conditions, interest rate	demand visibility, supported by a diversified
Market and
	movements and demand environment.	portfolio across geographies and segments to
Macroeconomic
	Slowdowns or pricing pressures may	mitigate concentration risk.
Risk
	impact sales momentum and project
	performance.
	The business requires continuous capital	Maintain liquidity through disciplined cash flow
	deployment, with potential mismatches	management, improves collection efficiency
Liquidity and
	between customer inflows and project-	and optimisation of capital structure through
Funding Risk
	related outflows. Interest rate changes may	refinancing and cost rationalisation.
	also increase financing costs.
	Construction delays, supply chain	Strengthen project planning and monitoring
	disruptions or contractor-related	systems, adopts structured execution approaches
Project Execution
	inefficiencies may lead to cost overruns	and ensures contractor alignment through
and Delivery Risk
	and timeline delays, affecting brand	milestone-based tracking mechanisms.
	credibility.
	Multiple approvals from regulatory and	Proactive engagement with authorities, strong
Regulatory and	local authorities are required for project	compliance processes and comprehensive due
Approval Risk	execution. Approval delays may impact	diligence prior to project initiation.
	launch timelines and revenue visibility.
	Changes in regulations related to land,	Robust compliance frameworks supported by
Legal and	taxation or real estate may affect project	legal expertise, with continuous monitoring and
Compliance Risk	variability and timelines. Non-compliance	adherence to regulatory requirements.
	can lead to penalties or disruptions.
	Higher reliance on borrowings may expose	Focus on deleveraging through strong collections
Leverage and
	the business to refinancing challenges and	and timely project completions, alongside active
Debt Risk
	interest rate fluctuations.	refinancing to lower borrowing costs.
	Increased competition, particularly in	Differentiates through strong brand positioning,
Competitive	premium segments, may affect pricing	quality developments and strategic project
Intensity Risk	power and sales absorption rates.	locations, while focusing on segments with stable
		demand.
Customer	Demand is influenced by buyer sentiment,	Maintains a balanced mix of projects across
Demand and	affordability and product mix, impacting	segments and locations, supported by phased
Sales Risk	sales velocity and inventory levels.	launches and targeted marketing strategies to
		sustain demand.

Internal Control Systems and Adequacy

The Company has a well-established internal control framework commensurate with the size and nature of its operations. These controls are designed to provide reasonable assurance regarding the reliability of financial reporting, safeguarding of assets, prevention and detection of fraud and errors, accuracy of accounting records and timely preparation of reliable financial information. The internal control system is supplemented by documented policies, standard operating procedures and periodic reviews by management. The Audit Committee and Board review the adequacy and effectiveness of these controls on a regular basis, supported by internal audits and independent external audits where necessary. Based on the review carried out during the year, the Board believes that the Companys internal control systems are adequate and operating effectively.

Cautionary Statement

This Management Discussion and Analysis contain forward-looking statements that involve risks and uncertainties. These statements are based on current expectations, estimates and projections about the industry, the Companys strategic intent, future performance and business environment. Words such as anticipates, expects, intends, plans, believes, seeks, estimates and similar expressions are intended to identify such forward-looking statements. Actual results may differ materially from those suggested by the forward-looking statements due to a variety of factors, including but not limited to economic conditions, interest rate movements, regulatory changes, market demand, execution challenges and competitive dynamics. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law.