Kolte Patil Developers Ltd Management Discussions

Global economy

The global economy remained unchanged at 3.4% in 2024 and 2025, influenced by the US tariff shock of April 2025. Despite the tariff shock, growth remained steady due to strong technology- sector investments, resilient trade activity, adaptive supply chains, and supportive policy measures. Businesses adapted to evolving trade patterns and stable demand across major economies helped sustain overall economic activity. Advanced economies witnessed a marginal growth from 1.8% in 2024 to 1.9% in 2025, while emerging market and developing economies demonstrated relative resilience, declined marginally to 4.4% in 2025 from 4.5% in 2024.

Global inflation continued its multi-year downward trend in 2025, declining to an estimated 4.1% from 5.8% in 2024.

Regional growth (%)	2025	2024
World output	3.4	3.4
Advanced economies	1.9	1.8
Emerging and developing economies (Source: IMF, United Nations)	4.4	4.5

Performance of the major economies, 2025

United States: GDP growth of 2.1% in 2025 compared to 2.8% in 2024.

China: GDP growth was 5.0% in 2025 compared to 5.0% in 2024.

United Kingdom: GDP growth was 1.3% in 2025 compared to 1.1% in 2024.

Japan: GDP growth was 1.2% in 2025 compared to -0.2% in 2024.

Germany: GDP growth was 0.2% in 2025 compared to a -0.5% in 2024.

(Source: IMF April 2026 Outlook)

Outlook

The global economy is expected to moderate over the next two years amid continued geopolitical tensions, trade disruptions, inflationary pressures, and heightened energy-market uncertainty. The outbreak of the

US Iran conflict in February 2026 has added a further layer of risk to the global outlook, contributing to volatility in oil prices, disruptions to trade routes, and increased uncertainty across financial markets. Global growth is projected at 3.1% in 2026 and 3.2% in 2027, while inflation is remain elevated before gradually easing. Although policy support and supply-chain adjustments may help stabilize markets, the external environment is likely to remain uncertain and volatile. Businesses may therefore continue to face pressure from cautious consumer demand, fluctuating input costs, and evolving trade dynamics. to

(Source: IMF April 2026 Outlook)

Indian economy

The Indian economy recorded a real GDP growth of 7.7% in FY 2025-26, compared to 7.1% in FY 2024-25, driven by strong consumption and increasing investments, reaffirming Indias position as one of the fastest-growing major economies globally.

Indias Real GDP at Constant Prices increased to H323.12 lakh crore in FY 2025-26, from H299.89 lakh crore in FY 2024-25(FRR).

Growth of the Indian economy

	FY23	FY24	FY25	FY26
Real GDP growth (%)	7.0*	7.2	7.1	7.7

(Source: MoSPI)

*FY23 GDP growth is based on the 2011–12 base year series, while FY24 onwards are based on the revised GDP series with base year 2022–23. Comparable FY23 data under the revised series is not yet available.

Growth of the Indian economy quarter by quarter, FY 2025-26

	Q1FY26	Q2FY26	Q3FY26	Q4FY26
Real GDP growth (%) (Source: MoSPI)	6.7	8.4	7.8	7.8

Inflation remained benign through much of FY 2025-26, with full-year CPI estimated at 2.1%. This created room for cumulative rate cuts of 125 basis points supporting consumption and investment activity.

However, macroeconomic stability was accompanied by currency volatility. The Indian rupee depreciated sharply by 9.9% during FY 2025-26 — its steepest annual fall since FY 2011-12 — touching H94.78 against the US dollar. The depreciation was driven by global capital outflows, elevated crude oil prices, a strengthening US dollar and geopolitical uncertainties. Foreign portfolio investors remained risk-averse, withdrawing H1.8 trillion during FY 2025-26. However, strong domestic institutional inflows of approximately H8.5 trillion provided a crucial counterbalance, highlighting the growing depth and resilience of Indias domestic capital markets.

Indias market capitalization declined 8% year on year in FY 2025-26 to USD 4.5 trillion from USD 4.83 trillion in FY 2024-25. The BSE Sensex declined 7% or 5,467 points in FY 2025-26, against a gain of 5.1% or 3,763 points, in FY 2024-25. Similarly, the Nifty 50 fell 5%, or 1,188 points, in FY 2025-26, compared to a gain of 5.3% or 1,192 points, in FY 2024-25. The downturn was largely driven by the ongoing West Asia conflict and concerns around potential tariff measures under Donald Trump, which weighed on global investor sentiment.

Gold prices surged 64.1% during

FY 2025-26 reflecting risk global aversion and safe-haven demand. Indias net direct tax collections rose 5.12% y-o-y to H23.40 lakh crore in FY 2025-26, though this fell short of the Revised Estimate of H24.21 lakh crore by approximately H80,000 crore. Corporate tax collections came in at H10.99 lakh crore against a target of H11.09 lakh crore, while personal income tax (including STT) stood at H12.41 lakh crore against a target of H13.12 lakh crore — the larger of the two misses, partly reflecting the income tax relief extended to the middle class in the Union Budget 2025–26

Indias banking sector reflected improving financial health, with the gross non-performing asset ratio declining to 2.1% as of September 2025, indicating stronger asset quality. Scheduled commercial banks reported a return on assets of 1.3% and a return on equity of 12.5% during the first half of 2025-26, reflecting continued improvement in profitability.

Economic growth in FY 2025–26 was primarily driven by the non-primary sectors, reflecting the continued structural shift towards industrial and service-led activities. While the primary sector recorded a moderate growth of 3.2% at constant prices, supported mainly by agriculture and fisheries, the secondary and tertiary sectors emerged as the principal contributors to overall economic expansion, registering a robust growth of 8.8% and 9.3%, respectively.

Within the economy, manufacturing, trade, hotels, transport, communication, services related to broadcasting and storage, and financial, estate and IT, professional services recorded double-digit growth at both constant and current prices, indicating strong momentum across key production and service-oriented activities. The broad-based performance of these sectors points to strengthening industrial output, expanding commercial activity, and increasing demand for business and financial services.

On the expenditure side, growth remained supported by both consumption and investment demand. Private Final Consumption Expenditure (PFCE) and Gross Fixed Capital Formation (GFCF) each recorded growth of 7.7% and 8.2% respectively during FY 2025–26, suggesting sustained household spending alongside continued capital creation. The simultaneous expansion of consumption and investment reflects a healthy demand environment and provides a strong foundation for future economic growth.

Outlook

The year under review highlighted the contrast between a global economy facing continued uncertainty and the Indian economy that remained relatively resilient. Supported by strong domestic demand, sustained infrastructure investment, and supportive policy measures, India is expected to remain among the fastest-growing major economies globally, with the World Bank estimating its FY 2026-27 growth forecast to around 6.6%.

Growth is expected to be supported by resilient private consumption, a stable interest rate environment, continued government capital expenditure, and strengthening trade linkages. However, risks to the outlook have increased following the escalation of the

US Iran conflict in 2026, which has heightened volatility in crude oil prices and global financial markets.

As highlighted by the Reserve Bank of India (RBI), higher energy and input costs could place upward pressure on inflation and operating expenses. While geopolitical uncertainties, elevated commodity prices, and weaker global demand may create near-term headwinds, Indias strong macroeconomic fundamentals, favourable demographics, rising urbanization, and sustained focus on economic development are expected to underpin long-term growth.

Tax relief: Domestic consumption is expected to receive a boost from policy measures aimed at enhancing household purchasing power. Under the New Tax Regime for AY 2026-27, the combination of a H75,000 standard deduction and an enhanced Section 87A rebate effectively eliminates income tax liability for salaried individuals earning up to H12.75 lakh annually, increasing disposable incomes and spending

Pay Commission impact: The 8^th Pay Commission process is expected to strengthen consumer sentiment well before implementation. With estimated salary revisions of 20-80%, over 1.1 crore central government employees and pensioners could experience a substantial rise in purchasing power. The expectation of retrospective arrears from January 1, 2026 is also likely to reduce precautionary savings and support discretionary spending on housing, automobiles, consumer durables, retail, and lifestyle categories.

Infrastructure investment : The Governments continued focus on capital expenditure remains a key economic growth catalyst, with budgeted capital outlay increasing from H11.2 lakh crore to H12.2 lakh crore for FY 2026-27. Beyond infrastructure creation, this spending generates a multiplier effect across steel, cement, logistics, construction, and real estate sectors. As private companies expand operations to meet rising demand, employment generation and wage growth strengthen household incomes, creating a virtuous cycle of investment, consumption, and economic expansion.

Stable monetary conditions: The Reserve Bank of Indias decision to maintain the repo rate at 5.25% provides visibility on borrowing costs and helps protect household disposable incomes by preventing sharp increases in EMIs on housing, automobile, and personal loans. At the same time, credit expansion is projected to remain robust, with overall credit growth estimated at around 13% significant in FY 2026-27, supported by approximately 14% growth in retail lending and over 22% growth in MSME credit. Greater availability of consumer finance, housing loans, personal credit, and business lending is enabling households and enterprises to advance spending and investment decisions, thereby supporting economic activity.

Fiscal consolidation:

The Governments commitment to reducing the fiscal deficit to 4.3% of GDP in FY 2026-27 is expected to strengthen macroeconomic stability while supporting private sector growth. Lower government borrowing requirements help release liquidity into the banking system, enabling financial institutions to extend more competitive retail and business credit. This crowding-in effect supports investment, consumption, and financial affordability while helping contain inflationary pressures and preserving household purchasing power.

(Source: MoSPI, Business Standard, Press Information Bureau, Business Standard, IMF, OECD, Deccan Chronicle. NDTV Profit, Business, The Asian Banker)

Indian real estate sector overview

Indias real estate market was valued at USD 532.61 billion in 2025 and is projected to reach USD 1,264.00 billion by 2034, growing at a CAGR of 10.08% from 2026 to 2034. The sector continues to be supported by rapid urbanization, infrastructure development, rising household incomes, and favourable demographic trends.

Indias urbanization rate stood at 40.3% in 2025, and is set to add more urban residents over the next 25 years. Indias urban population is expected to almost double by 2050 to 951 million. Indias cities are engines of growth, innovation, and labour absorption — evidence shows that exponentially growing city size raises productivity by 12%, underscoring the centrality of cities to long-term economic performance.

Government-led capital expenditure is further strengthening infrastructure and acting as a catalyst for economic expansion; public capital expenditure has been proposed to increase by approximately 9% to H12.2 lakh crore in FY 2026–27, creating opportunities for real estate development across emerging growth corridors. Rising disposable incomes are emerging as a key growth driver. Indias nominal GDP per capita is projected to increase from USD 2,675 in 2025 to USD 2,813 in 2026, reflecting a steady upward trajectory alongside economic expansion.

IoT-enabled smart buildings are increasingly integrating automated lighting, climate control, and advanced security systems. Now becoming commonplace across metro cities, these features are accelerating the transition toward sustainable, future-ready developments.

The calendar year 2025 witnessed strong institutional investments with total inflows reaching USD 10.4 billion across 77 deals, up 17% from USD 8.9 billion in 2024. This momentum was accompanied by a structural shift in 2025, as domestic institutional investors accounted for 52% of total inflows, surpassing foreign investors for the first time since 2014.

Equity investments continued to dominate, accounting for 83% of total institutional deployment, underscoring a clear preference for stable income and long-term capital appreciation.

The office segment attracted nearly USD 6 billion, or 58% of total inflows, driven by strong leasing activity, expansion of global capability centres, and renewed corporate hiring.

In 2025, the residential segment attracted institutional investments of USD 2.1 billion, accounting for 20% of total institutional capital deployed. Investments declined by 49% year-on-year, reflecting a more cautious funding environment. Equity investments accounted for 44% of total inflows, indicating a shift from the historically debt-dominated funding pattern, while foreign and domestic investors contributed equally, with a 50% share each.

Key statistics, FY 2025-26

The residential real estate market across Indias top eight cities witnessed a moderate correction in FY 2025-26 following a period of strong activity. Overall launches declined by 4% year-on-year to approximately 3.61 lakh units, while sales moderated by 2% to 3.45 lakh units. Despite the moderation, demand and supply remained broadly balanced, reflecting continued market activity across key residential markets. Bengaluru and Chennai witnessed growth in both launches and sales, reflecting sustained demand momentum, while Mumbai continued to retain the largest share of overall sales contribution despite a marginal decline in volumes. NCR and

Pune recorded moderation in both new launches and sales activity, whereas Hyderabad and Ahmedabad remained relatively resilient. Mumbai, Bengaluru, and NCR together continued to account for a significant share of overall residential market activity.

The following table provides a detailed city-wise comparison of launches and sales during FY 2024-25 and FY 2025-26.

Particulars	Launches	Sales
City	FY25	FY26	Change	FY25	FY26	Change
Mumbai	96,913	86,899	-10%	97,374	95,443	-2%
Bengaluru	59,403	69,421	17%	54,733	55,961	2%
NCR	59,082	49,750	-16%	56,375	50,938	-10%
Pune	62,486	55,384	-11%	54,745	49,361	-10%
Hyderabad	43,534	40,051	-8%	36,883	38,485	4%
Chennai	17,657	21,401	21%	16,645	18,668	12%
Ahmedabad	22,512	22,276	-1%	18,476	18,823	2%
Kolkata	14,404	15,548	8%	17,310	17,081	-1%
Total	3,75,991	3,60,730	-4%	3,52,541	3,44,760	-2%

Source: Knight Frank

Residential sales across Indias top eight cities - Mumbai, Bengaluru, NCR, Pune, Hyderabad, Chennai, Ahmedabad and Kolkata - totaled 84,827 units in Q1 2026, a 4% year-on-year decline. The quarter marked a moderation from the peak levels achieved in the second half of 2025, when sales rose from 87,603 units in Q3 to 90,403 units in Q4, although demand remained above the levels recorded in Q2 2025 (81,927 units).

Among the major markets, NCR and Pune recorded the sharpest moderation, with sales declining 10% year-on-year, while Mumbai witnessed a 2% decline. In contrast, the remaining cities reported modest growth, led by Chennai (12%), followed by Bengaluru (2%), Ahmedabad (2%) and Hyderabad (4%).

Despite the slowdown, during Q1 2026, Mumbai Metropolitan Region (MMR) remained the countrys largest residential market, accounting for 23,185 units sold during Q1 2026. Bengaluru ranked second with 13,092 units, followed by NCR (12,734 units) and Pune (12,711 units). Hyderabad contributed 9,541 units, while Chennai, Ahmedabad and Kolkata each recorded sales volumes in the range of 4,000–4,800 units. The supply side remained active, marking the 14^th consecutive quarter in which new launches exceeded sales. Total residential launches reached 94,855 units in Q1 2026, resulting in a supply-demand gap of approximately 10,000 units during the quarter. This sustained launch activity contributed to a rise in unsold inventory to 5,19,846 units, up 3% year-on-year. Consequently, the Quarters to Sell (QTS) metric edged up from 5.9 quarters in Q1 2025 to 6.0 quarters in Q1 2026, indicating a gradual build-up of available inventory.

Demand patterns continued to shift towards higher-value housing. Sales in the premium segment (above H10 million) increased by 14% year-on-year, with homes in this category accounting for 50% of total residential sales in 2025 — up from 47% a year earlier. In contrast, the sub-H5 million segment registered a sharp 17% year-on-year decline, reflecting the impact of sustained price appreciation on affordability for value-conscious buyers. The moderation in residential absorption reflects a combination of factors, including elevated property prices, evolving buyer preferences and a more cautious purchasing environment amid global economic and geopolitical uncertainties. While underlying housing demand remains fundamentally healthy, affordability pressures and rising inventory levels have prompted developers to adopt targeted sales incentives, including subvention schemes and limited-period offers, to support transaction momentum. Overall, the residential market appears to be transitioning from a phase of rapid expansion to one of more measured growth. Although long-term demand drivers remain intact, the sector is increasingly characterized by greater emphasis on affordability, product differentiation, inventory management and disciplined execution as developers navigate a more balanced market environment.

Pune

The Pune residential market entered a phase of normalization during calendar year 2025 and the first quarter of 2026, characterized by moderating transaction volumes, continued price appreciation, and disciplined supply additions. Residential sales declined 3% year-on-year to 50,881 units in calendar year 2025, with the second half accounting for 26,552 units. This moderation continued into Q1 2026, when quarterly sales volumes declined 11% year-on-year to 12,711 units, reflecting the impact of rising residential prices on affordability.

In response, developers adopted a measured approach to new supply, with project launches declining 6% year-on-year to 56,118 units in calendar year 2025. This trend continued in Q1 2026, as launches declined by 5% to 15,497 units. Inventory increased 11% year-on-year to 51,653 units at the end of 2025, while the citys Quarters-to-Sell (QTS) metric remained at a lean 4.0 quarters, indicating balanced market conditions.

Residential prices rose 5% year-on-year to H53,992 per sq m (H5,016 per sq ft) at the end of 2025, demonstrating the markets ability to sustain value appreciation despite moderating volumes. Demand remained concentrated in employment-driven corridors. Western micro-markets such as Hinjewadi, Wakad, Baner and Balewadi continued to attract strong buyer interest, reflecting their evolution into established mid- and premium-housing destinations. Eastern locations including Kharadi, Wagholi and Hadapsar also witnessed sustained development activity, supported by corporate expansion and growth in commercial office infrastructure.

Demand increasingly shifted towards homes priced above H1 crore, while the affordable housing segment faced pressure from rising land and construction costs. This trend indicates a gradual premiumization of Punes housing market, supported by rising incomes and changing buyer preferences.

Looking ahead, infrastructure projects including Pune Metro Line 3, the Pune Ring Road and the proposed international airport expansion are expected to improve regional connectivity, support development in emerging corridors and strengthen the citys long-term residential growth prospects.

Mumbai

Mumbai retained its position as Indias largest residential market during calendar year 2025 and the first quarter of 2026, supported by sustained demand, healthy absorption and continued price appreciation. Residential sales increased 1% year-on-year to 97,188 units in 2025, while the second half recorded 50,153 units, reflecting steady market activity.

Sales moderated 7% year-on-year in Q1 2026 to 23,185 units, although overall demand remained resilient across key residential segments.

Developers maintained a disciplined supply strategy through most of 2025, with launches declining 10% year-on-year to 87,114 units. However, confidence in market fundamentals was reflected in a strong rebound in Q1 2026, when new launches reached 19,775 units, the highest quarterly level in 14 quarters. Residential prices increased 7% year-on-year to H95,326 per sq m (H8,856 per sq ft) at the end of 2025, supported by strong demand across mid- and premium-housing categories. A notable feature of the Mumbai market was its ability to sustain price growth while reducing inventory. Unsold stock declined 6% year-on-year to 155,604 units at the end of 2025, resulting in a balanced QTS metric of 6.4 quarters. This reflects the markets depth, liquidity and capacity to absorb new supply despite elevated property values.

The market continued to witness a clear shift towards premium housing. During Q1 2026, homes priced between H1 crore and H3 crore accounted for 48% of new launches, while the luxury and high-end segment contributed a further 27%. At the same time, the share of homes priced below H50 lakh declined, highlighting changing buyer preferences and increasing premiumization. Geographically, the

Western Suburbs led new supply, followed by the Eastern Suburbs, Navi Mumbai and Thane, while peripheral suburban locations continued to attract demand due to improving connectivity and relative affordability.

Infrastructure upgrades remain a key structural driver for Mumbais residential market. The operationalization of Metro Line 3s 33.5-Km underground corridor connecting Colaba, BKC, Worli, SEEPZ, and the airport, alongside the completed Phase 1 of the Coastal Road (Marine Drive to Worli) and the Atal Setu sea link, has meaningfully improved intra-city connectivity. Further catalysts are in the pipeline — Metro Line 8 (the 35-Km Gold Line linking both airports via Navi Mumbai nodes), the Thane–Borivali Twin Tunnel, Phase 2 of the Coastal Road (Worli to Kandivali), the Versova–Bandra Sea Link and the Panvel–Karjat suburban rail extension — collectively expanding the citys mobility network and opening new residential corridors in Navi Mumbai, Thane, and the western suburbs. The Navi Mumbai International Airport, now partially operational, is additionally reshaping demand dynamics across the MMRs eastern and southern nodes. These developments, together with rising household incomes and continued interest in under-construction properties, are expected to sustain long-term residential demand across the metropolitan region.

Bengaluru

Bengalurus residential market remained one of the countrys strongest-performing housing markets during calendar year 2025 and Q1 2026, supported by sustained demand from the startup employment, expanding Global Capability Centre (GCC) activity beyond technology sector and continued developer confidence.

Residential sales remained stable at 55,373 units during 2025, while second-half sales increased 3% year-on-year to 28,774 units. This momentum continued into Q1 2026, when sales grew 5% year-on-year to 13,092 units, reflecting resilient end-user demand. Supported by positive market sentiment and long-term demand visibility, developers accelerated project launches, which increased 23% year-on-year to 68,760 units in 2025. A further 17,185 units were launched during Q1 2026, reinforcing Bengalurus position as one of Indias most active residential markets. While the increase in supply led inventory to rise 25% year-on-year to 67,518 units at the end of 2025, resulting in a QTS metric of 4.9 quarters. The markets most notable trend was the continued shift towards premium housing. Residential prices increased 12% year-on-year to H79,525 per sq m (H7,388 per sq ft) at the end of 2025 and continued to strengthen in Q1 2026. Demand remained strongest in the H1 crore to H5 crore segment, where inventory turnover remained healthy, while the affordable housing category experienced slower absorption. This divergence highlights the growing preference for larger, higher-quality homes among Bengalurus professional workforce and reflects broader premiumization trends across the city.

Demand continues to be closely linked to Bengalurus position as Indias leading technology and GCC hub. Continued expansion of technology firms and global capability centres has supported housing demand from a growing base of high-income professionals, particularly in established employment corridors. Residential activity remained concentrated across Whitefield, Sarjapur

Road, Hebbal, Yelahanka and the emerging Devanahalli corridor, all of which benefit from strong employment connectivity. Looking ahead, infrastructure projects including Namma Metro Phase 2B, the Peripheral Ring Road and the Satellite Town Ring Road are expected to expand development opportunities across new growth corridors. These investments are likely to improve connectivity, support integrated township development and sustain long-term residential demand across the metropolitan region.

(Source: Knight Frank, Cushman and Wakefield)

Growth drivers

Growing premiumization: The structural shift toward premium housing continues to strengthen. Properties priced above H1 crore accounted for 63% of annual residential sales in 2025, up from 53% in 2024. The high-end segment above H1 crore recorded 6% year-on-year growth, despite an 11% decline in overall market volumes, highlighting the resilience of demand for higher-value homes. Demand remained concentrated in major urban centers such as Bengaluru, Mumbai, and

Pune, reflecting the growing preference for premium residential developments.

Rising urbanization: According to the UNs World Urbanization

Prospects 2025, Indias urbanization rate stood at 40.3% in 2025, and is set to add more urban residents over the next 25 years. Indias urban population is expected to almost double by 2050 to 951 million. This demographic shift is expected to strengthen housing demand, drive residential development across emerging urban centres, and stimulate investments in infrastructure, thereby supporting sustained real estate absorption over the long term.

Green buildings on the rise: Indias green building market is expected to grow at a CAGR of 10.5% through FY 2031-32, reaching an estimated USD 85 billion, driven by surging demand for certified spaces from investors and tenants amid tightening supply. The market stood at USD 38 billion in FY 2023-24 and is forecast to reach USD 85 billion by FY 2031-32. As India advances toward its net-zero emissions target by 2070, green building practices will be critical to sustainable development, resource conservation, and improved quality of life.

Tax rationalization and housing demand: The Union Budget 2026–27 introduced the New Income Tax Act, 2025, effective April 2026, aimed at simplifying tax structures, easing compliance, and improving dispute resolution. Measures such as automated

TDS certification, extended return revision timelines, and lower pre-deposit requirements for appeals are expected to improve taxpayer confidence and strengthen disposable incomes. For the real estate sector, these reforms are likely to support homebuyer sentiment, improve affordability perception, and drive housing demand across urban mid-income and premium segments.

Rising disposable incomes: Indias growing middle class, rising urban employment, and increasing dual-income households are expected to support a gradual rise in disposable incomes over the coming years. Backed by economic growth, infrastructure development, and financial inclusion, higher purchasing power is likely to strengthen homeownership aspiration, improve affordability for first-time buyers, and drive demand for larger and better-quality homes. This trend is expected to sustain long-term demand across affordable, mid-segment, and premium housing categories.

Renewed focus on affordable housing and urban development: The governments continued focus on housing and infrastructure remains a key driver for the real estate sector. Initiatives such as SWAMIH Fund 2 are expected to accelerate completion of stalled housing projects and improve homebuyer confidence. Increased infrastructure spending and the Urban Challenge Fund are likely to improve urban connectivity, support faster urbanization, and unlock growth across emerging cities and suburban regions. Together, these measures are expected to strengthen housing demand and create long-term opportunities across residential and mixed-use developments.

Government policies

Affordable housing policy: Government initiatives such as PMAY-Urban 2.0 continue to support housing affordability and expand access to homeownership across urban India. The scheme is expected to strengthen demand across affordable and mid-income housing segments while supporting greater inclusivity, formal financing adoption, and long-term growth in organized residential development.

Urban Challenge Fund: The

H1 lakh crore Urban Challenge Fund is expected to accelerate infrastructure-led urban transformation across Indian cities by supporting resilient, inclusive, and climate-responsive urban development. Increased participation from market-linked financing mechanisms is likely to improve execution efficiency, enhance urban infrastructure, and create long-term opportunities for residential, commercial, and mixed-use developments across emerging urban centres.

City Economic Regions (CERs): The proposed development of City Economic Regions (CERs) is expected to strengthen the economic potential of Tier-II and Tier-III cities through integrated infrastructure, industrial expansion, and urban development. The initiative is likely to support decentralized urbanization, create new employment hubs, and drive organized housing demand across emerging regional markets.

Expansion of high-speed rail connectivity: Proposed high-speed rail corridors connecting key economic centres are expected to improve intercity mobility and accelerate infrastructure-led corridor development across peripheral and secondary urban markets. Enhanced connectivity is likely to support residential expansion beyond core city limits, improve housing accessibility, and stimulate demand for integrated townships, commercial spaces, and transit-oriented developments.

Infrastructure Risk Guarantee Fund and CPSE REITs: The proposed Infrastructure Risk Guarantee Fund is expected to improve funding access and reduce financing risks for large-scale infrastructure and real estate projects, thereby supporting faster project execution and developer confidence. In addition, the monetization of CPSE real estate assets through dedicated REIT structures is likely to deepen institutional participation, strengthen capital inflows, and support greater transparency and formalization across the real estate sector.

Regulatory framework: Regulatory reforms such as RERA continue to strengthen transparency, accountability, and consumer confidence within the Indian real estate sector. Improved disclosure standards, stricter compliance requirements, and greater project oversight are accelerating sector formalization and strengthening the credibility of organized and compliant developers.

Benami Transactions (Prohibition)

Amendment Act: The continued enforcement of the Benami Transactions (Prohibition) Amendment Act is expected to strengthen transparency and discourage the use of unaccounted funds in real estate transactions. The legislation supports the governments broader objective of improving governance, enhancing market credibility, and encouraging formalization across the sector.

Industry SWOT analysis

Strengths

Strong market growth and robust economic fundamentals: India remains one of the worlds fastest-growing major economies, and its real estate sector continues to benefit from rising urbanization, infrastructure investments, increasing disposable incomes, and strong employment generation. These favourable macroeconomic trends are supporting sustained expansion across residential, commercial, retail, and industrial real estate segments, strengthening the sectors long-term growth outlook.

Government policy support and a maturing regulatory framework: The real estate sector continues to benefit from sustained government support through housing initiatives, infrastructure development, and urban transformation programmes. At the same time, regulatory reforms such as RERA and improved compliance frameworks are enhancing transparency, strengthening buyer confidence, improving affordability, and accelerating the formalization of the sector, particularly benefiting organized developers.

Real estate as an investment avenue: Indian real estate continues to gain traction as a long-term investment asset, supported by rapid urbanization, rising income levels, and infrastructure-led development. Regulatory reforms, increased transparency, and growing participation from institutional investors and NRIs have strengthened investor confidence, positioning real estate as a stable and value-accretive asset class across residential, commercial, and alternative segments.

Technology integration: The sector is increasingly leveraging digital platforms, data-driven sales processes, sustainable construction practices, and advanced building technologies to improve operational efficiency, project execution, and customer experience. This is enhancing transparency, scalability, and the long-term competitiveness of organized developers.

Weaknesses

High land and development costs impacting affordability: Escalating land prices, construction costs, and input cost inflation continue to increase overall project costs across the real estate sector. These rising costs are affecting housing affordability, particularly for middle-income buyers, while also increasing demand sensitivity in price-sensitive segments. At the same time, higher development expenses may impact project viability and developer margins, especially in competitive urban markets.

Complex and multi-layered regulatory environment: Despite improvements under RERA, the approval ecosystem remains complex, requiring multiple clearances across environmental, municipal, fire, and structural authorities. These procedural challenges can delay project execution and increase compliance costs.

Infrastructure congestion in metropolitan centres: Major cities continue to face pressure on transport systems, utilities, and civic infrastructure. Inadequate infrastructure augmentation relative to the pace of development is affecting liveability, reducing commute efficiency, and limiting the pace of sustainable urban expansion across several metropolitan regions.

Fragmented market and inconsistent quality standards: The Indian real estate market remains fragmented, with strong participation from regional and unorganized developers across several markets. This often leads to inconsistent quality standards, varying customer experiences, and reputational challenges for the sector.

Opportunities

Urbanization and demographic dividend: Indias rapid urbanization, expanding workforce, and growing middle class are expected to drive sustained long-term demand for housing, commercial spaces, and urban infrastructure.

GCC-led commercial real estate growth: Global Capability Centres (GCCs) are emerging as a key driver of office demand across

Indias major business hubs. Their expansion is supporting demand for Grade A office spaces, strengthening office absorption, and driving the development of high-quality commercial assets while also supporting residential demand in surrounding micro-markets.

Data centres emerging as a new asset class: Data centres are emerging as a high-growth real estate asset class in India, supported by rising digital adoption, cloud expansion, and increasing investments in digital infrastructure. Growing institutional participation and supportive policy measures are expected to strengthen demand for industrial-grade land and specialized commercial developments across key markets.

Growth of alternative asset classes: Segments such as warehousing, co-living, senior living, mixed-use developments, and logistics infrastructure are witnessing rising investor interest, supported by changing lifestyle preferences, digital adoption, and supply chain transformation.

Expansion across Tier-II and

Tier-III cities: Government initiatives such as City Economic Regions (CERs), high-speed rail corridors, and urban infrastructure investments are opening new real estate growth corridors beyond traditional metropolitan markets. Improving connectivity and lower land costs are enhancing the attractiveness of emerging cities for residential and commercial development.

Rising focus on green and sustainable buildings: Increasing demand for ESG-compliant and energy-efficient developments is accelerating the adoption of green-certified buildings across residential and commercial segments. Sustainable assets are expected to attract stronger investor interest and premium valuations over the long term.

Threats

Macroeconomic and interest rate risks: Global volatility, inflationary pressures, and rising interest rates may affect affordability, increase borrowing costs, and moderate overall demand sentiment.

Construction cost inflation and labour availability: Rising costs of key construction materials and labour shortages may impact project costs, margins, and execution timelines.

Policy and regulatory uncertainty: Changes in land regulations, environmental clearances, urban development norms, and compliance requirements may impact project approvals, execution timelines, and long-term planning across the sector.

Demand-supply imbalances: Although premium housing continues to witness strong demand across major markets, selective oversupply in certain luxury micro-markets could lead to inventory build-up and pricing pressures if supply growth outpaces absorption.

Environmental and climate-related risks: Stricter sustainability norms and climate-related challenges may increase development costs and affect construction activity in vulnerable regions.

Competition from alternative investment assets: Growing investor preference for financial and digital assets may divert capital flows away from real estate, particularly among younger investors seeking higher liquidity.

Legal and land title-related risks: Land acquisition challenges, litigation, and legacy title issues continue to affect project timelines and overall market confidence.

Technology-led disruption in commercial real estate: Evolving workplace models, including hybrid working trends and digital collaboration platforms, may impact long-term demand for traditional office formats in certain markets.

Company overview

Since its inception in 1991, Kolte-Patil Developers Ltd. (KPDL) has established itself as one of Indias leading real estate developers, with a strong presence across Pune, Mumbai and Bengaluru. Headquartered in Pune and listed on both the NSE and BSE (BSE: 532924; NSE: KOLTEPATIL), the Company has built a reputation for quality, transparency, design excellence, and timely delivery. Over the past three decades, KPDL has delivered more than 68 landmark projects spanning residential developments, integrated townships, commercial complexes and IT parks, with a cumulative saleable area exceeding 32 million square feet. The Company enjoys a leadership position in Punes residential market while steadily expanding its footprint in Mumbai and Bengaluru.

Guided by its philosophy of "Creation, not Construction," KPDL caters to distinct customer segments through its two flagship brands: Kolte-Patil, which addresses the mid-premium and premium housing segments, and 24K, its premium luxury brand known for aspirational living experiences and design-led developments. The Companys diversified portfolio, strong execution capabilities, and customer-centric approach have enabled it to consistently create value across markets while setting benchmarks in urban living. Renowned for its focus on quality, design excellence and transparency, Kolte-Patil has built enduring trust among homebuyers and investors. The Company is guided by an experienced leadership team and remains committed to developing spaces that are relevant today while being adaptable for the future, balancing functionality with aesthetic appeal and environmental harmony. Its core values — integrity, innovation, excellence, sustainability, value creation, and timely delivery — remain deeply embedded across all its projects. This disciplined approach is supported by prudent financial management, reflected in the

Companys asset-light strategy, healthy balance sheet, and low leverage profile. The Companys strong financial position is further validated by its CRISIL AA-/Stable rating for long-term bank facilities and non-convertible debentures.

Profit and loss account snapshot- Standalone

Particulars	FY 2025-26	FY 2024-25	Change in %
		(Restated)
Revenue from operations (H in crore)	658	1,539	-57
EBITDA (H in crore)	51	226	-78
EBITDA margin (%)	7.69	14.65	-48
Profit before tax (PBT) ( H in crore)	9	171	-95
PBT margin (%)	1.31	11.12	-88
Net profit/loss after tax ( H in crore)	(1.97)	114.65	-102
PAT margin (%)	-0.30	7.45	-104

Key financial ratios

Particulars	FY 2025-26	FY 2024-25	Change in %	Reason for variance
		(Restated)
Current ratio	1.01	0.97	4	-
Debt-Equity ratio	0.96	1.40	(31)	Variance is on account of increase in shareholders equity during the year.
Debt Service Coverage ratio	0.08	0.39	(79)	Variance is on account of decrease in earnings in current year as compared to previous year.
Return on Equity ratio	(0.00)	0.15	(101)	Variance is on account of decrease in earnings in current year as compared to previous year.
Inventory Turnover ratio	0.12	0.39	(0.70)	Variance is on account of decrease in cost of goods sold against increase in average inventory during the year.
Trade Receivable Turnover ratio	21.63	83.44	(74)	Variance is mainly on account of decrease in revenue in current year compared to previous year.
Trade Payable	3.09	2.63	17	-
Turnover Ratio

 

Particulars	FY 2025-26	FY 2024-25	Change in %	Reason for variance
		(Restated)
Net Capital Turnover Ratio	17.93	(11.16)	-	Variance is mainly on account of decrease in revenue during the year and positive working capital in current year compared to previous year.
Net Profit ratio	(0.00)	0.08	(104%)	Variance is on account of decrease in earnings in current year as compared to previous year.
Return on Capital Employed	1%	11%	(86%)	Variance is on account of decrease in earnings in current year as compared to previous year.
Return on Investment	10%	8%	34%	Variance is mainly on account of increase in interest income in current year as compared to previous year.

Risk management

Geopolitical risk

Global geopolitical tensions, supply chain disruptions, and volatility in commodity and energy markets may impact construction costs, investor sentiment, and overall real estate demand.

Mitigation: KPDL mitigates these risks through prudent financial management, diversified sourcing, strong liquidity buffers, and a geographically diversified project portfolio across key urban markets.

Interest rate risk

Variations in interest rates costs and buyer sentiment, with rising rates potentially dampening demand and increasing financing expenses.

Mitigation: The Company maintains a low net-debt-to-equity ratio, diversified funding sources and strong cash reserves, while closely monitoring liquidity. During high interest rate cycles, demand is supported through targeted incentives and buyer-friendly pricing strategies.

Market risk

Real estate companies are exposed to fluctuations in property prices and demand, particularly during economic slowdowns, which can impact valuations, sales and profitability.

Mitigation: KPDL addresses this through geographic diversification across key markets such as Pune, Mumbai and Bengaluru, reducing reliance on any single region.

Liquidity risk

Constraints in liquidity can disrupt project execution, raise financing costs and limit growth opportunities.

Mitigation: The Company maintains financial flexibility through strong operating cash flows, healthy sales and collections, diversified funding sources, and access to undrawn bank lines. As of 31 March 2026, KPDL had cash & cash equivalents & current investments of H976 crore, providing adequate liquidity to support ongoing and planned developments while mitigating refinancing and execution risks.

Raw material cost risk

Volatility in input costs can increase construction expenses and compress margins, particularly when pricing flexibility is limited.

Mitigation: KPDL leverages longstanding supplier relationships and secures fixed-price contracts where feasible to enhance cost visibility and manage inflationary pressures.

Political and regulatory risk

Changes in policies, zoning norms and environmental regulations can delay project timelines or impact feasibility.

Mitigation: KPDL actively monitors regulatory developments, engages with authorities and undertakes thorough due diligence during land acquisition to mitigate potential risks.

Competitive risk

Increasing competition may affect market share, pricing power and customer acquisition. Mitigation: The Company focuses on product differentiation, customer experience and innovation, while leveraging strategic partnerships and disciplined financial management to sustain long-term growth.

Internal control systems and adequacy

Kolte-Patil Developers Limited has established a robust risk management and internal control framework aligned with the principles and requirements of the corporate governance code. This framework is embedded within the organizational structure, ensuring coordinated efforts across functions and clear accountability in the discharge of responsibilities. The Board of Directors provides strategic direction and oversight to the executive leadership, while also supervising the functioning of monitoring and support committees. The Companys internal audit function is conducted by PwC, strengthening the effectiveness and reliability of its control environment.

Human resources

The Company regards its employees as its most valuable asset and a key driver of sustained success. It fosters a transparent and purpose-led work environment, supported by competitive compensation, structured recognition frameworks, and equitable growth opportunities. Career development is enabled through internal academies, cross-functional exposure, and certification programmes, providing clear pathways for progression. Employees are also encouraged to take on voluntary initiatives beyond their core roles, promoting creativity, innovation, and personal development.

During FY 2025-26, following the strategic partnership with Blackstone, the Company launched ASCEND, a structured transformation programme designed to strengthen organizational readiness for its next phase of growth. Built around five pillars People, Performance,

Processes, Positioning, and Perception—ASCEND focuses on leadership development, capability building, performance excellence, process digitization, institutionalization, employee engagement, and cultural alignment, helping create a more agile, scalable, and future-ready organization.

The Companys human capital strategy continues to focus on leadership development, inclusive hiring, data-led decision-making, and continuous capability building across functions. As on 31 March 2026, it had a workforce of 991 employees, with a retention rate exceeding 83%, and 42% of employees having been associated with theorganizationforoverfive years.

Cautionary statement

This statement made in this section describes the Companys objectives, projections, expectation and estimations which may be ‘forward-looking statements within the meaning of applicable securities laws and regulations. Forward-looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or to be realized by the Company. Actual result could differ materially from those expressed in the statement or implied due to the influence of external factors which are beyond the control of the Company. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements on the basis of any subsequent development, information or events.