Kedia Construction Company Ltd Management Discussions

forming part of Directors Report for the year ended 31^st March, 2026.

INDUSTRY STRUCTURE AND DEVELOPMENT

During 2025-26, the Indian real estate sector continued to witness structural growth, supported by rapid urbanisation, rising household incomes, infrastructure development, increasing institutional investment and sustained demand for quality residential and commercial spaces. The industry has gradually shifted from a fragmented and largely unorganised market towards a more formalised, transparent and institutionally driven sector, supported by regulatory reforms such as RERA and the growing participation of REITs, private equity funds and other institutional investors. The market comprises residential, commercial, retail, industrial and warehousing, hospitality and emerging alternative assets such as data centres and co-living spaces. The strength of the sector is reflected in the record capital inflows of approximately USD 14.3 billion into Indian real estate during calendar year 2025, representing a growth of around 25% over 2024. Land and development sites accounted for more than 46% of these inflows, followed by built-up office assets at approximately 28%, highlighting continued investor confidence in residential and commercial development.

The momentum continued into 2026, with real estate equity capital inflows reaching USD 8.5 billion during H1 2026, the highest-ever half-yearly figure and 32% higher year-on-year.

The Indian real estate sector continues to offer significant opportunities driven by urbanisation, rising household incomes, infrastructure development, growth of Global Capability Centres, expansion of e-commerce and logistics, and increasing institutional participation. The emergence of alternative asset classes such as data centres, warehousing, co-living and senior living further provides opportunities for diversification and sustainable growth. However, the sector remains exposed to risks arising from fluctuations in interest rates, availability and cost of financing, rising land and construction costs, regulatory and approval requirements, intense competition, economic cycles and project execution delays. The Company remains focused on prudent capital allocation, efficient project execution, regulatory compliance, cost management and diversification to effectively manage these opportunities and risks. While the management of your Company is confident of creating and exploiting the opportunities, it also finds the many challenges such as unanticipated delays in project approvals, availability of accomplished and trained labour force Increased cost of manpower, rising cost of construction, growth in auxiliary infrastructure facilities, over-regulated environment

The outlook for the Indian real estate sector remains positive, supported by sustained economic activity, urbanisation, rising household incomes, infrastructure development and increasing institutional participation. The residential segment is expected to remain resilient, with improving affordability and continued preference for professionally managed and branded developments supporting end-user demand.

The commercial office segment is also expected to maintain its growth trajectory, driven by expansion of Global Capability Centres (GCCs), technology and professional services. Indias office absorption reached a record 45.5 million sq. ft. during H1 2026, representing approximately 10% year-on-year growth, while the countrys office stock is expected to exceed 1 billion sq. ft. during 2026.

Under such circumstances, business gives right signals of growth & improvement and to avail of all such growth opportunities. The Board, therefore, considers that the Company should be managed in controlled manner.

The Company operates in a highly competitive and capital-intensive industry and is exposed to various business, economic, financial, regulatory and operational risks. Changes in interest rates, availability of finance and liquidity conditions may affect borrowing costs, project funding and customer affordability, thereby impacting demand and project profitability.

Fluctuations in land prices and construction costs, including the cost of cement, steel, labour and other raw materials, may adversely affect project margins. The business is also subject to regulatory and approval risks, including changes in real estate regulations, development control regulations, environmental norms, taxation and other statutory requirements, as well as delays in obtaining necessary approvals. Delays in project execution, availability of labour and contractors, supply-chain disruptions and unforeseen site-related issues may result in cost overruns and delays in project completion.

The Company is operating in one segment known as construction activity. The product wise comparison is not possible as it is not producing the product but it is undertaking the project. Hence performance can be compared on project completion as such performance of the Company has to be seen in overall manner.

The Company has developed adequate internal control system commensurate to its size and business. The Company has Internal Auditors, to conduct the internal audit to ensure adequacy of internal control system, compliance of rules and regulations of the country and adherence to the management policies.

The Company has registered a turnover of Rs. 55 Lakhs and Profit/ Loss before depreciation and a tax were Rs. (229.57) Lakhs. The depreciation provided during the year was NIL and, the net profit after tax for the year is Rs. (232.72).

During the year under review, the Company continued to maintain harmonious, cordial and healthy relations with its employees. The Company remains committed to fostering a positive, inclusive and productive work environment, while ensuring effective communication and employee engagement across the organisation. There were no instances of industrial disputes, strikes or other labour-related disruptions during the year and, accordingly, no man-days were lost on account of any industrial dispute or labour-related issue. The Company continues to focus on employee welfare, workplace discipline and a conducive working environment to support sustained organisational growth and productivity.

During the financial year under review, none of the Senior Management Personnel of the Company, including personnel positioned one level below the Board of Directors and all Heads of Departments

(HODs), had any financial, commercial or other material transactions or arrangements with the Company in which they had a personal interest that could potentially result in a conflict with the interests of the

Company at large.

The Company remains committed to maintaining the highest standards of integrity, transparency and ethical conduct in its business operations and requires its Senior Management Personnel to act in the best interests of the Company and its stakeholders at all times.

The statements in this management discussion and analysis describing the outlook may be "forward looking statement" within the meaning of applicable laws and regulations. Actual result might differ substantially or materially from those expected due to the developments that could affect the companys operations. The factors like significant change in political and economic environment, tax laws, litigation, technology, fuctuations in material cost etc. may deviate the outlook and result.

In accordance with Regulation 34 (3) of SEBI (Listing Obligations and Disclosure requirement)

Regulations, 2015, I hereby confirm that, all the Directors and the Senior Management personnel of the Company have affirmed compliance with the Code of Conduct, as applicable to them, for the financial year ended 31^st March, 2026.