Kesar India Ltd Management Discussions

1. Global Economic Overview – FY26

Global economic growth remained broadly resilient during most of FY26, supported by higher trade activity ahead of tariff changes, favorable financial conditions and continued investment in technology. Reflecting this strength, the International Monetary Fund (IMF) increased its global growth forecast for 2026 to around 3.3% in its January 2026 update, with emerging and developing economies expected to grow by nearly 4%.

However, global conditions became more challenging towards the end of the year. Rising tensions in the Middle East disrupted shipping routes through the Strait of Hormuz and affected energy infrastructure, leading to higher oil, gas and freight costs. As a result, the IMF revised its global growth forecast downwards to 3.1% for 2026 and 3.2% for 2027 in its April 2026 outlook, while also expecting inflation to rise slightly in the short term before continuing its downward trend. Meanwhile, the United States revised tariff arrangements with several countries, including India. Under a new bilateral framework, the reciprocal tariff on Indian goods was reduced from a peak of 50% to around 18%. Despite these developments, geopolitical tensions, trade barriers and increasing fragmentation in global trade continue to pose risks to economic growth and investment flows, including into emerging real estate markets such as India.

S o u rc e s:h t t p s : / / w w w. i m f. o r g / e n / p u b l i c a t i o n s / w e o / i s s u e s / 2 0 2 6 / 0 4 / 1 4 / w o r l d - e c o n o m i c -outlook-april-2026 IMF World Economic Outlook https://www.imf.org/-/media/files/publications/weo/2026/ january/english/text.pdf IMF WEO Update, Jan 2026 https:// www.imf.org/en/publications/weo/issues/2026/04/14/world-economic-outlook-april-2026 IMF WEO, Apr 2026.

Indian Economic Overview – FY26

India continued to be one of the fastest-growing major economies during FY26, supported by strong domestic demand, rising consumption and sustained government investment. Reflecting this momentum, the International Monetary Fund (IMF) increased its growth forecast for India to around 7.3% for FY26 in its January 2026 update. The Reserve Bank of India also raised its growth expectations during the year, highlighting the economys strong fundamentals. Looking ahead, growth is expected to moderate to a healthy 6.4%–6.5% in FY27 as the benefits of recent tax relief measures and higher government capital spending gradually ease. Despite growing global uncertainties and the impact of geopolitical tensions, the IMFs April 2026 outlook reaffirmed Indias resilience, indicating that the countrys growth remains largely driven by domestic demand and is less dependent on external trade compared with many other economies.

Retail inflation eased to multi-year lows for much of calendar 2025, driven by softer food prices. As the economy enters FY27, inflation is expected to gradually move closer to the Reserve Bank of Indias target of 4%, within its 2%–6% tolerance band, which has been extended until March 2031. The Union Budget 2026-27, presented on February

1, 2026, reinforced this growth agenda: the fiscal deficit was trimmed to 4.3% of GDP even as capital expenditure was raised to a record 12.2 lakh crore (approximately 4.4% of GDP), nominal GDP growth for FY27 was budgeted at approximately 10%, and the new Income Tax Act, 2025 took effect from April 2026, simplifying direct-tax compliance. Sustained infrastructure investment, continuing urbanisation and rising household incomes together provide a supportive backdrop for real estate demand across both residential and commercial segments – the core operating environment for Kesar Indias business, discussed from Section 3 onward.

Indias FY26/FY27 growth outlook against the global backdrop (IMF World Economic Outlook; India figures are fiscal-year, World figures are calendar-year).

Sources:"https://www.imf.org/en/publications/weo/ issues/2026/04/14/world-economic-outlook-april-2026"IMF World Economic Outlook "https://www.indiabudget.gov. in/doc/budget_speech.pdf"Union Budget 2026-27

3. Indian Real Estate Sector / Industry Overview – FY26

Real estate remains one of the largest and most employment-intensive sectors of the Indian economy, currently contributing an estimated 7.3% of Indias Gross Value Added – a share Knight Frank India projects will rise to approximately 15.5% by 2047 as urbanisation, rising incomes and the progressive formalisation of the sector continue. In value terms, Knight Frank estimates Indias real estate market has scaled from roughly USD 300 billion in calendar 2024 to USD 650 billion in 2025, and projects further expansion to USD 1 trillion by 2030 and as much as USD 5.8 trillion by 2047, underpinned by an expanding middle class, accelerating urbanisation, rapid digital adoption and continued policy reform under RERA, PMAY-Urban 2.0 and the REIT/InvIT framework.

India real estate market size, CY2024–CY2047F (Knight Frank India Research).

FY26 was defined less by raw transaction volumes – which moderated in several large markets – and more by the sectors continuing institutionalization: larger, more structured land banks, greater capital-markets access for developers, and a decisive shift in buyer and occupier preference toward quality, well-titled, RERA-compliant developments. The same dynamic is increasingly visible in ancillary segments: rising urban-redevelopment activity in space-constrained metros and a broader move by developers toward capital-light, fee-based execution models such as third-party EPC contracting are beginning to blur the boundary between development and construction services – a trend Kesar India began to pursue in the early weeks of FY27.

3.1 Residential

Housing sales across Indias leading cities softened in volume terms through calendar 2025 even as sales value continued to climb – a clear illustration of the premiumization reshaping Indian housing demand, with buyers purchasing fewer but larger and more expensive homes. Knight Frank data shows the average size of homes launched rising by roughly 7% year-on-year, with the sub- 1 crore segment continuing to lose share as demand concentrates in higher ticket bands, driven by rising affluence, aspirational upgrades and continued end-user (rather than purely investment-led) demand. Tier-2 hubs and well-connected peripheral micro-markets – including Central Indian cities such as Nagpur – are capturing a rising share of both new launches and absorption as metro, expressway and airport connectivity improves nationally.

Top-7 city housing: sales volume moderated even as sales value continued to rise, CY2024 vs CY2025 (Knight Frank India Research).

3.2 Commercial (Office)

Indias office market delivered a third consecutive record year in 2025, with gross leasing across the countrys leading cities estimated by Knight Frank at over 86 million square feet, roughly 20% above the prior year. Global Capability Centres were the single largest demand driver, accounting for close to 38% of full-year absorption and an even higher share of leasing in early 2026, as multinational corporations continued to expand India-based technology, engineering and analytics operations. Grade A space captured the overwhelming majority of leasing activity, and limited new completions relative to demand kept rentals firm across most major markets – a dynamic expected to persist through FY27 given the continuing weight of GCC-led demand.

India office market, CY2025: leasing volume and the growing share of Global Capability Centres in total absorption (Knight Frank India Research).

Sources: Knight Frank India Research

4.Nagpur Real Estate Sector / Industry Overview – FY26

Nagpur, which forms the core of Kesar Indias land bank, further strengthened its position as the leading urban and industrial growth hub of Central India during FY26. In a January 2025 assessment, Colliers India ranked Nagpur first among the countrys top emerging cities, ahead of Jaipur (second) and Lucknow (third), evaluating each city across physical infrastructure, social infrastructure, population growth and economic development. Building on this, a July 2026 study by Liases Foras – an independent, non-broking real estate research firm – introduced an ‘Alpha

Grade Luxury Asset Framework and named Nagpur Indias #1 emerging luxury real-estate investment market, ahead of Indore, Coimbatore, Ahmedabad and Lucknow, the four other cities assessed.

The citys growth continues to be anchored by MIHAN, a unique airport-linked multi-product Special Economic Zone spread over approximately 4,351 acres and targeting over 1 lakh jobs, already home to operational campuses of TCS, Infosys, HCL, Dassault Reliance Aerospace and the Air India MRO facility. Connectivity has been transformed by the fully operational, 701-kilometre Samruddhi Mahamarg linking Nagpur to Mumbai, an operational Metro network exceeding 40 kilometers (with a further approximately 56 kilometers planned under Phase 2), and a proposed 148-kilometre, six-lane peripheral ring road. At the policy level, the Maharashtra governments approximately 5.25 lakh crore Viksit Nagpur 2047 master plan underpins a proposed International Bi-Financial Centre at Hingna – conceived along the lines of Mumbais Bandra-Kurla Complex or Gujarats GIFT City. Independent reporting reviewed by JLL confirms that the Nagpur Metropolitan Region Development Authority initiated land acquisition of approximately 1,710 acres on the citys outskirts for the IBFC in September 2025, with an estimated project outlay of approximately 6,500 crore – a scheme expected to catalyze the citys next phase of commercial and residential growth.

Nagpur land price appreciation, led by the MIHAN/ IBFC corridor (Liases Foras).

These structural tailwinds are already visible in pricing. Per Liases Foras, Nagpurs plotted-land market has compounded at approximately 15.2% a year over the past seven years (17.8% in South Nagpur specifically), while the IBFC-influence belt spanning Butibori, Dongargaon and Kothewada delivered cumulative price appreciation of approximately 119% over the past three years – nearly triple the roughly 38% appreciation recorded across the broader South Nagpur market over the same period, even before the business district itself becomes operational. Looking ahead, the same study projects plot values in South Nagpur to grow approximately 4x between 2025 and 2033, well ahead of the 2.6x projected for North Nagpur and 1.9x projected for the East and West Nagpur corridors, and finds that developments meeting its full ‘Alpha Grade criteria – brand credibility, strategic location, product design, hospitality integration and HNI community exclusivity – have historically delivered 12–18% CAGR appreciation and 15–30% higher resale premiums than the broader luxury market.

Projected plot-value growth by Nagpur zone, 2025–2033E (Liases Foras).

The entry of national developers such as Godrej Properties into Nagpur, including through the purchase of a developed land parcel from Kesar India itself during FY26 (Section 9), is a further sign of the citys rising profile on the national real estate map.

Sources: Colliers India, Top Emerging Cities Report  Liases Foras, Nagpurs Emerging Luxury Opportunity

JLL Homes Research

5. Union Budget & Policy Tailwinds

The Union Budget 2026-27, presented on February 1, 2026, provided a broadly supportive backdrop for real estate and allied construction activity. Effective capital expenditure was raised to a record 12.2 lakh crore, up approximately 11.4% over the prior year and equivalent to roughly 4.4% of GDP, even as the fiscal deficit was trimmed to

4.3% of GDP – a combination intended to sustain the infrastructure-led growth model without compromising fiscal discipline. Nominal GDP growth for FY27 was budgeted at approximately 10%.

• SWAMIH Fund-II: a second Special Window for Affordable and Mid-Income Housing was announced to complete stalled housing projects nationally, building on the first funds substantial commitments already deployed across more than 148 projects.

• Urban Challenge Fund: continuing municipal-bond and public-private-partnership financing for city-level growth-hub infrastructure – directly relevant to Nagpurs ‘Viksit Nagpur 2047 ambitions.

• PMAY-Urban 2.0: ongoing rollout of the Governments flagship affordable-housing programme.

• Income-tax relief: continued personal income-tax rationalization supporting household purchasing power and, in turn, housing demand.

• RBI policy easing: a cumulative 125 basis points of repo-rate cuts since February 2025, together with benign inflation, lowered financing costs for both homebuyers and developers, including Kesar India, through FY26.

Sources: Union Budget 2026-27

6. Company Overview

Kesar India Limited ("Kesar India" / "the Company") is a Nagpur-headquartered, listed real estate development company with a legacy spanning more than four decades in real estate and finance under the Kesar Group, founded by Shri Gopal Fatehchand Gupta, who continues to serve as Founder & Chairman Emeritus. Originally incorporated in 2003, the Company was converted into a public limited company in December 2021 and listed on the SME platform of the BSE in 2022. During FY26, shareholders approved the migration of the Companys equity shares to the Main Board of the BSE and the NSE, a significant step in the Companys institutionalization and a foundation for the next phase of its growth. The Company markets its developments under the "Kesar Lands" brand, is ISO 9001:2015 certified, and holds memberships of CREDAI, IGBC, NAREDCO and the Builders Association of India.

The Companys stated vision is to build Central India and, over time, expand into multiple high-growth regions across the country, with the ambition of becoming Indias most valuable real estate company; its mission is to deliver homes that are both affordable and aspirational, with clear titles and dependable, on-time completion. This is underpinned by a philosophy the Company describes as the "3 Ts" – Trust, Transparency and Timely Delivery. Leadership continuity is provided by Shri Yash Gopal Gupta (Chairman & Whole-time Director) and Shri Sachin Gopal Gupta (Managing Director, an alumnus of IIM Ahmedabad and IIM Bangalore), supported by a board that includes Smt. Sangeeta Gopal Gupta as Non-Executive Director and three Independent Directors. The Companys momentum was recognised externally during FY26: it was ranked sixth nationally for year-on-year revenue growth in the Grohe–Hurun India Real Estate 150, 2025 – the only Central India-based developer to feature on the list – and was named "Emerging Developer of the Year" at the Economic Times Leadership Excellence Awards 2025.

7. Project Portfolio & Development Pipeline

As of March 31, 2026, Kesar Indias aggregate development pipeline – spanning completed, ongoing, upcoming and forthcoming projects – comprised 29 projects with an estimated aggregate Gross Development Value in excess of 5,100 crore, providing three to five years of execution visibility. A further approximately 4,000 crore of Gross Development Value is under active evaluation, subject to due diligence and definitive agreements. The portfolio spans the Companys four core formats – plotted developments, villas and bungalows, apartments, and integrated mixed-use developments combining residential, retail and commercial space – concentrated across Nagpurs fastest-growing micro-markets, including Kamptee, Bhilgaon, Hingna, Sumthana and the MIHAN-SEZ corridor.

29	12.24 msf	> 5,100 cr	4,000 cr
PROJECTS across the pipeline	DEVELOPABLE AREA additional pipeline	GDV 3–5 yr visibility	UNDER EVALUATION further GDV, pre-DD

The Companys Project Portfolio & Development Pipeline is approximately ~15.6 million square feet of saleable area and 1,191 units, anchored by Kesar Gateway, a 1.5-million-square-foot mixed development in Kamptee comprising villas, a mall and plots that was completed 28 months ahead of its original schedule – a benchmark the Company has positioned as a new standard for execution speed in its home market. The forthcoming pipeline is led by Kesar Hills, at approximately 87.45 lakh square feet the Companys single largest project to date, alongside the upcoming Kesar Business Park (Hingna MIDC) and Code Name Mihan (within the MIHAN-SEZ corridor), both combining commercial, residential and, in the case of Kesar Business Park, hospitality components.

			RERA
Name of Project	Location (Nagpur)	Project Type	Registration No	Status	Total	Units Saleable Area in Sq. ft
Kesar 29	Yerkheda	Plots	P50500029593	Completed	7	15,656
Kesar 45	Yerkheda	Plots	P50500029664	Completed	13	28,270
Kesar Fortune	Kothewada	Plots	P50500080762	Completed	33	51,146
Kesar Garden 2	Bhilgaon	Plots	P50500053961	Completed	46	51,905
Kesar Vihar	Bhilgaon	Plots	P50500031273	Completed	47	78,540
Kesar Signature	Bhilgaon	Plots	P50500029368	Completed	49	89,912
Kesar Garden 3	Bhilgaon	Plots	P50500078180	Completed	74	97,221
Kesar Gold	Kamptee	Plots	P50500054355	Completed	120	1,59,751
Kesar Gateway	Kamptee	Villas, Mall, Plots	P50500032514	Completed	351	8,59,977
Kesar Gold Villas	Khairi	Villa / Bungalow	PP1190002500461	On-going	42	46,790
Kesar Vihar 2	Bhilgaon	Plots	PP1190002501855	On-going	42	60,170
Kesar Riverdale	Sumthana	Plots	RERA In Process	On-going	367	4,97,216
Kesar Business Park	Hingna MIDC	Commercial + Residential + Hotels	RERA In Process	Upcoming	*	15,00,000
Code Name Mihan	Takli Sumthana	Commercial + Residential	RERA In Process	Upcoming	*	*
Total					1,191 units	35,36,555 sq. ft.

*Planning stage; area/units excluded from the completed & ongoing subtotal. Rows consolidated for readability.

7.2Forthcoming Projects

14 Forthcoming projects, aggregating approximately 12.1 million square feet of saleable area:

Name of Projects Forthcoming Saleable Area in Sq. ft

Kesar Hills	87,45,190
Kesar Gold 2	15,00,000
Kesar Gateway Mall & Tower	4,85,000
Kesar Code Name - B	2,85,000
Kesar G Bungalow	2,72,000
Kesar Metro	2,37,500
Signature Tower	1,57,000
Kesar Gold Tower 2	84,000
Kesar Gold Tower	81,000
Kesar Riverdale 2	80,000
Kesar Imperia	75,000
Kesar G Convenient Shopee	35,000
Kesar G Clubhouse	30,000
Kesar Gold Shop	21,000
Total	1,20,87,690 sq. ft.

8. Business Segments

Kesar Indias core business spans four established real estate formats – residential, commercial, plotted developments and mixed-use – executed through a deliberately flexible mix of wholly owned development, joint ventures, joint-development agreements and special-purpose vehicles that allow the Company to scale its land bank without disproportionately straining its balance sheet. Standard-format projects typically target completion within 12 to 24 months of launch, underpinned by the Companys four-decade track record of on-time – and, increasingly, ahead-of-schedule – delivery in its home market.

Subsequent to the FY26 year-end, in May 2026, the Companys wholly owned subsidiary

Kesar Infraventures secured its first significant third-party EPC contract – for a large-scale residential redevelopment project awarded by Zee Enterprises at Siddharth Nagar, Byculla, Central Mumbai – a capital-light, fee-based complement to core development that positions Kesar India to participate in Indias fast-growing urban-redevelopment and construction-services market without the balance-sheet intensity of land acquisition. In parallel, the Company took its first steps into financial services during FY26, through a securities-trading subsidiary, and into international markets, establishing a Middle East trading platform in the UAE as a precursor to evaluating PropTech and real estate opportunities in Dubai.

international markets, establishing a Middle East trading platform in the UAE as a precursor to evaluating PropTech and real estate opportunities in Dubai.

Segment	Description
Residential	High-end luxury & affordable family homes – bungalows, villas, apartments
Commercial	Office spaces, malls & commercial complexes
Plotted Developments	Acquisition, development & sale of plots – the Companys core, capital-efficient format
Mixed-Use	Integrated "live-work-play" formats: residential + retail/mall + office (+ hospitality in select projects)
EPC / Infrastructure (new, FY26-FY27)	Third-party EPC contracting – e.g. Byculla, Mumbai redevelopment (contract secured May 2026)

9. FY26 Business Highlights

FY26 was a year of both rapid balance-sheet scale-up and material strategic progress for Kesar India, as the Company moved decisively from a project-by-project developer toward a structured, multi-year development platform.

9.1 Land Bank & Portfolio Expansion

The Company undertook a series of disciplined land acquisitions through the year, most notably a 24,256 square-metre parcel in Hingna, Nagpur earmarked for the mixed-use Kesar Business Park (estimated revenue potential of approximately 900 crore), a strategic four-acre plot within the MIHAN-SEZ corridor at Khapri for the ‘Code Name Mihan commercial and residential development (estimated Gross Development Value of approximately 600 crore), and two adjoining parcels totalling approximately 22.5 acres in Mouza Sumthana, Hingna (estimated revenue potential of approximately 200 crore). Together with further acquisitions across the year, these transactions took the Companys aggregate pipeline to 29 projects and an estimated Gross Development Value in excess of 5,100 crore, with a further approximately 4,000 crore of Gross Development Value under active evaluation.

9.2 Execution & Monetization

Kesar Gateway, the Companys 1.5-million-square-foot mixed development in Kamptee, was completed 28 months ahead of its original schedule during the year – a result management has positioned as a new execution benchmark for the industry. The Company also demonstrated the value embedded in its land bank when it sold a developed, non-agricultural parcel at Mauza Takli, Hingna to Godrej Properties Limited for approximately 115.7 crore.

The Company also took its first steps toward diversification during FY26: it acquired a 99.99% stake in Kesar Capital LLP (November 24, 2025) to enter securities-trading activities, took a majority stake in Mahashakti Coal Washeries Private Limited (January 19, 2026), and incorporated Oriole Trading FZ-LLC in Ras Al Khaimah, UAE (March 10, 2026) as a step-down subsidiary of Kesar Middle East – FZCO, ahead of a stated intent to evaluate PropTech and real estate opportunities in Dubai and entry into the solar power sector. Both the Kesar Capital LLP and Mahashakti transactions were nominal-value acquisitions of newly formed or dormant entities, intended to establish the corporate platform for these new verticals ahead of subsequent capital deployment.

9.3 Capital Markets & Corporate Actions

The Company raised approximately 273.72 crore through a preferential issue of fully convertible equity warrants during the year (issue conducted September 6–20, 2025; revised down from an originally planned 291.72 crore due to warrant undersubscription), with phased conversion into equity through FY26; Crisil Ratings Limited was engaged as monitoring agency for utilisation of proceeds, with no deviation reported. In November 2025, shareholders approved, by postal ballot, the migration of the Companys equity shares from the SME platform to the Main Board of the BSE and the NSE – a pivotal step toward institutionalising the business and broadening its investor base. The Company also approved and implemented the Kesar India Employees Stock Purchase Scheme, 2025, with allotments made during the year.

9.4 Recognition & Awards

Kesar India was ranked sixth in India for year-on-year revenue growth in the Grohe–Hurun India Real Estate 150, 2025 – the only Central India-based company to feature on the list – and was named "Emerging Developer of the Year" at the Economic Times Leadership Excellence Awards 2025. Company leadership received further individual recognition during the year, including for Managing Director Shri Sachin Gopal Gupta and Director Smt. Shweta Gupta.

9.5 Subsequent Events

Two further strategic developments occurred after the FY26 year-end and are noted here for completeness; they will be more fully described in the notes to the FY26 financial statements and/or the FY27 report as appropriate. On May 21, 2026, the Companys wholly owned subsidiary Kesar Infraventures secured an approximately 160 crore third-party EPC contract awarded by Zee Enterprises for a large-scale residential development at Siddharth Nagar, Byculla, Central Mumbai, comprising residential towers and allied infrastructure works, to be executed over approximately 24 months – the Companys first significant EPC contract and its first major footprint outside Central India. Separately, on May 29, 2026, the Company signed an LLP agreement for a 33.33% stake in Triinfinity Realty LLP. Both transactions are positioned by management as early steps in the Companys stated FY27 diversification strategy.

10. FY26 Financial Highlights

The Companys audited standalone and consolidated financial results for the year ended March 31, 2026 were approved by the Board on April 8, 2026, with an unmodified audit opinion on both. Consolidated performance for FY26 is summarised below.

10.1 Financial Performance Consolidated Financial Summary

Particulars ( crore, consolidated)	FY25	FY26
Total revenue from operations	107.8	176.5
EBITDA*	28.7	46.2
EBITDA Margin (%)*	26.6%	26.2%
Profit After Tax (PAT)	19.6	29.98
PAT Margin (%)	18.2%	16.9%
Basic EPS ( )	7.83	10.46

*EBITDA and EBITDA margin are Company-computed, non-GAAP measures

On a consolidated basis, revenue from operations grew 64% year-on-year to 176.5 crore, EBITDA grew 61% to 46.2 crore, and profit after tax grew 52% to 29.9 crore, even as EBITDA and PAT margins moderated modestly – to 26.2% and 16.9% respectively – reflecting a sharp increase in finance costs (up 193% year-on-year) and depreciation (up 145%) as the balance sheet scaled to fund the Companys expanded land bank. Basic consolidated earnings per share rose to 10.46 from 7.83 in FY25.

Consolidated Revenue, EBITDA and PAT, FY22–FY26 ( crore).

10.2 Consolidated Financial Performance, FY22–FY26

Particulars ( crore)	FY22	FY23	FY24	FY25	FY26
Revenue from Operations	8.4	15.2	53.4	107.8	176.5
Other Income	0.7	0.2	0.6	2.1	3.0
Total Revenue	9.1	15.4	54.0	109.9	179.5
EBITDA	5.3	1.3	15.3	28.7	46.2
Finance Costs	0.1	0.1	0.1	1.3	3.7
Depreciation & Amortisation	0.2	0.2	0.4	1.2	3.0
Profit Before Tax	5.1	1.1	14.8	26.2	39.5
Profit After Tax	3.6	0.8	10.8	19.6	29.9

10.3 Key Financial Ratios

Ratio	FY24	FY25	FY26	Basis
EBITDA Margin (%)	28.7%	26.6%	26.2%	Company (audited financials)
Net Profit Margin (%)	20.3%	18.2%	16.9%	Company (audited financials)
Debt / Equity (x, gross)	0.72	0.55	0.18	Company (investor presentation)
Return on Equity (%)	n.a.	n.a.	20.0%	Company (computed, indicative)
Return on Capital Employed (%)	41%	40%	23%	Company (computed, indicative)
Debtor Days	22	58	124	Company (computed, indicative)
Inventory Days	731	252	412	Company (computed, indicative)
Working Capital Days	n.a.	47	379	Company (computed, indicative)

Indicative ratios are derived from the Companys disclosed consolidated balance sheet and are subject to confirmation against the final audited The balance sheet grew approximately four-fold during the year, led principally by the ~ 273.72 crore equity-warrant issue and its progressive conversion into equity and reserves; the Companys debt-to-equity ratio (gross borrowings to net worth) improved sharply to 0.18x from 0.55x in FY25, among the more conservatively levered balance sheets in the Companys peer set even as it scaled to fund an expanded land bank; on a net basis (borrowings less cash and cash equivalents). Inventory days and working-capital days both lengthened materially during the year (inventory days to 412 from 252; working-capital days to 379 from 47), consistent with the substantial FY26 build-out of the land bank ahead of monetisation, and are expected to normalise as the pipeline is executed over the next three to five years. Operating cash flow was an outflow of approximately 128 crore (FY25: approximately 8 crore outflow), reflecting land-acquisition spend ahead of monetisation, while financing inflows of approximately 180 crore from the warrant issue comfortably funded this investment phase.

Balance sheet growth and the working-capital cycle, FY25 vs FY26.

11. Outlook

Management has articulated a clear ambition to convert Kesar Indias newly assembled ~ 5,100 crore development pipeline into delivered revenue over the next three to five years, while continuing to broaden the Companys footprint beyond Nagpur. Stated priorities include phased execution across the Companys 29-project pipeline; scaling the newly established EPC/infrastructure business beyond its first contract, secured in May 2026 for the Byculla, Mumbai redevelopment; entry into additional geographies including the National Capital Region, Hyderabad, Bengaluru, Chennai, Vijayawada and Kanpur; and evaluation of further diversification into solar power and international real estate, particularly in Dubai.

Margin trend (five-year) and the sharp de-leveraging following the FY26 equity-warrant issue.

The near-term operating backdrop remains broadly supportive: continuing infrastructure investment in and around Nagpur (MIHAN-SEZ, the Samruddhi Mahamarg, Metro Phase 2 and the proposed International Bi-Financial Centre), sustained national policy tailwinds for housing and urban infrastructure, and softer financing costs following the Reserve Bank of Indias rate-cutting cycle should all continue to support both demand and execution economics through FY27. The Companys planned migration to the Main Board of the BSE and the NSE is expected to further widen its institutional investor base and support the capital-raising capacity needed to execute its expanded pipeline. This outlook is necessarily forward-looking and is subject to the risks, uncertainties and assumptions set out in the Cautionary Statement at the end of this document.

12.SWOT Analysis

STRENGTHS	WEAKNESSES
40-year Nagpur legacy; strong "Kesar Lands" brand	High concentration in Nagpur/Central India
Large, self-accumulated land bank ( 12.24 msf)	Inventory & working-capital days rising sharply
Kesar Gateway delivered 28 months early	Limited track record in EPC, coal, trading, finance
Conservative leverage (0.18x D/E) post warrant issue	No dividend history to date
Flexible Own/JV/JDA/SPV execution	Rising finance costs & depreciation as scale increases
Ranked 6th nationally on revenue growth (Hurun 2025)
OPPORTUNITIES	THREATS
MIHAN-SEZ, Samruddhi Expressway, Metro Ph. 2, IBFC	Sector cyclicality; rate & input-cost sensitivity
New geographies: NCR, Hyderabad, Bengaluru, Chennai,	Execution risk on a large, greenfield 3–5-yr pipeline
Vijayawada, Kanpur	Middle East conflict / trade tensions – IMF-flagged downside risk
EPC / urban redevelopment (Byculla contract, secured May 2026) as new revenue stream	Approval delays; rising land & construction costs
Solar power evaluation; Main Board listing to widen investor base	Rising competition in Nagpur (e.g., Godrej Properties)
SWAMIH-II, Urban Challenge Fund, PMAY-U 2.0, rate easing	Integration risk from rapid multi-sector diversification

13. Risks

• Sector cyclicality and interest-rate sensitivity affecting demand and financing costs.

• Execution risk across a rapidly expanded, largely greenfield ~ 5,100 crore pipeline with three-to-five-year gestation periods.

• Geographic concentration risk, with the substantial majority of the existing land bank located in Nagpur/Central India.

• Integration and capital-allocation risk associated with rapid diversification into EPC, financial services, coal and international trading.

• Regulatory and approval risk typical of the Indian real estate sector, including delays in statutory clearances.

• Rising land and construction input costs.

• Competitive intensity, including the entry of large national developers into Nagpur.

• Working-capital and liquidity risk, with inventory and working-capital days increasing materially during FY26 as the land bank was built out.

14.Internal Control Systems and their Adequacy

The Company maintains an internal control framework commensurate with its scale: documented processes across land acquisition, project execution, sales and financial reporting; Audit Committee oversight of internal financial controls and internal audit (conducted by M/s M.C. Asawa & Co., Chartered Accountants, reappointed for FY27); rigorous land-title due diligence prior to every acquisition, supported by external legal counsel, given its centrality to the Companys growth strategy; a monitoring agency (Crisil Ratings Limited) engaged to track utilisation of preferential-issue proceeds, with no deviation reported for FY26; Board-approved policies covering related-party transactions, the vigil mechanism and insider trading; and ISO 9001:2015 certification for quality management across development operations.

Management believes these controls are adequate for the current scale of operations and is committed to strengthening compliance, MIS and risk-management infrastructure as the Company scales its pipeline, geographic footprint and business-segment diversity, and completes its migration to the Main Board of the BSE and the NSE.

15.Human Resources

The Company is led by a professional management team that combines long-tenured family leadership with specialist talent, including alumni of IIM Ahmedabad and IIM Bangalore and professionals with prior experience at global real estate firms. During the year, the Company approved and implemented the Kesar India Employees Stock Purchase Scheme, 2025, aligning employee incentives with long-term shareholder value creation as the Company scales. The Company also continued to invest in the communities around it, including school-upgradation initiatives in Nagpur and its continuing ‘Kesar Hope community-engagement programme. The Company intends to continue strengthening its people practices – including formal talent-acquisition, learning & development and performance-management frameworks – as it transitions from a family-promoted, Nagpur-centric developer into a multi-city, multi-segment, Main Board-listed platform.

Cautionary Statement

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be "forward-looking statements" within the meaning of applicable securities laws. Actual results could differ materially from those expressed or implied, owing to factors including global and domestic economic conditions, real estate demand and pricing trends, regulatory changes, interest rates, input costs, execution risk and other incidental factors. This document does not constitute an offer or invitation to purchase or subscribe for any securities of the Company. The Company undertakes no obligation to publicly update or revise any forward-looking statements.

References & Sources

This Management Discussion and Analysis draws primarily on four sources – supplemented by three additional named sources for Nagpur-specific market data in Section 4 – cited throughout. Titles are hyperlinked; the full URL is also shown in plain text for reference in printed copies.

• IMF World Economic Outlook — https://www. imf.org/en/publications/weo/issues/2026/04/14/ world-economic-outlook-april-2026

• Union Budget 2026-27 — https://www. indiabudget.gov.in/doc/budget_speech.pdf • Knight Frank India Research — https://content. knightfrank.com/research/3070/documents/ en/india-real-estate-office-and-residential-market-h2-2025-12597.pdf

• Kesar India Limited, FY26 Investor Presentation — https://kesarlands.com/wp-content/ uploads/2026/05/Intimation-for-Investor-Presentation_FY-2025-2026.pdf

• Colliers India, Top Emerging Cities Report — https://thelivenagpur.com/2025/01/25/nagpur-tops-list-of-top-3-emerging-cities-colliers-india-report/

• Liases Foras, Nagpurs Emerging Luxury Opportunity — https://www.tribuneindia. com/news/business/indias-luxury-real-estate-evolution-nagpurs-emerging-luxury-opportunity/ amp

• JLL Homes Research — https://www.jllhomes. co.in/blogs?category=Real+Estate+News

CORPORATE INFORMATION

BOARD OF DIRECTORS

Yash Gupta	(Chairman and Whole-time Director)
Sachin Gupta	(Managing Director)
Sangeeta Gupta	(Non-executive Director)
Utsav Bhavsar	(Independent Director)
Akshay Parmar	(Independent Director)
Ishwar Lal	(Independent Director)

 

CHIEF FINANCIAL OFFICER	REGISTERED OFFICE
Pankhuri Gupta	Kesar India Limited
	2nd Floor, Saraf Chambers, Mount Road,
COMPANY SECRETARY AND COMPLIANCE OFFICER
	Sadar Bazar, Nagpur-440001Maharashtra.
Aditi Anup Deshmukh
	Email: cs@kesarlands.com
STATUTORY AUDITORS	Website: www.kesarlands.com
M/s RHAD & CO.	CIN: L51220MH2003PLC142989
Firm Registration No. 102588W
	REGISTRAR & SHARE TRANSFER AGENT
SECRETARIAL AUDITORS	KFin Technologies Ltd
M/s. Prachi Bansal & Associates	Selenium Tower B, Plot 31 & 32, Financial District, Nanakramguda,
	Serilingampally Mandal, Hyderabad - 500 032, Telangana
House No 837 Sector	E-mail id: seml.ipo@kfintech.com
28 Faridabad,121008	Tel. No: +9140 6716 2222
INTERNAL AUDITORS	NAME OF THE STOCK EXCHANGE
M/s M.C. Asawa & Co,	BSE LIMITED – SME PLATFORM
Firms Registration No. 008041C	Phiroze Jeejeebhoy Towers,
	Dalal Street, Mumbai – 400001
	Script Code: 543542