Kolte Patil Developers Ltd Management Discussions

Global economic review

The global economy maintained a growth rate of 3.2% in both ell2023and2024,reflecting from 6.8% overall stability despite underlying challenges. The industrial sector, particularly in Europe and parts of Asia, came under pressure due to slowing manufacturing activity, persistent supply chain bottlenecks, and subdued consumer demand. In contrast, the services sector provided much-needed support, emerging as the primary driver of global expansion.

Advanced economies grew modestly, improving slightly from 1.6% in 2023 to 1.7% in 2024, while emerging and developing economies registered a marginal slowdown, easing to 4.2% in 2024 from 4.3% in the previous year.

A major positive development was the sharp moderation in global inflation, which in 2023 to 3.0% in 2024, with projections of 3.5% in 2025 and 3.2% in 2026. The decline was supported by receding effects of earlier shocks, stronger labour market participation, and effective monetary policy interventions worldwide.

However, entering 2025, the global outlook was clouded by rising trade uncertainty. The return of Donald Trump as US President introduced volatility, as his administration threatened new tariffs on imports unless trading partners reciprocated with lower barriers for US exports. This stance has created the most significant source of unpredictability for global trade and markets in 2025.

Regional growth (%)	2024	2023
World output	3.2	3.2
Advanced economies	1.7	1.6
Emerging and developing economies	4.2	4.3
(Source: IMF, KPMG, Press Information Bureau, BBC, India Today)

Outlook

Uncertainty has deepened in the global economy as the United States imposed tariffs on imports, prompting several countries to respond with reciprocal duties on US exports. While the eventual impact of these measures on global growth remains unclear, they are expected to act as a drag on momentum. This challenge is further compounded by geopolitical tensions, trade restrictions, and climate-related risks. Taking these factors into account, the World Bank has forecast global economic growth at 3.0% in 2025, growing slightly to 3.1% in 2026. (Source: IMF, United Nations)

Indian economic review

Indias economy expanded with a real GDP growth of 6.5% in FY 2024-25, compared to 9.2% in w FY 2023-24, marking a four-year low amid slower manufacturing and weaker investments, though the country retained its position as the worlds fourth-largest economy. Nominal GDP rose to H331 Trn (from H301.23 Trn).

In FY 2024-25, the RBI made its largest forex intervention since 2008 09, with net sales of USD 34.5 Bn as the rupee slid to 87.95 per dollar in February before rebounding to 83.75 by May. Forex reserves fell sharply, but the aggressive dollar sales and liquidity measures stabilized the currency and are expected to yield a record dividend transfer of H2.5 3 Trn to the government.

Inflationary pressures eased, with CPI averaging 4.63% and retail w was directed towards flo inflation at 4.6% thelowestsince the pandemic supporting savings and consumption. Forex reserves reached USD 676 Bn (April 4, 2025), while rating upgrades (14.5%) outpaced downgrades (5.3%) for the fourth year, reflecting strong growth, rural demand, infra investment, and low corporate leverage.

Gross foreign direct investment (FDI) inflows into India rose by 13.7% to USD 81 Bn in FY 2024-25, reflecting the countrys continued attractiveness as an investment destination. However, net inflows dropped sharply to just USD 0.4 Bn, compared to USD 10.1 Bn in FY 2023-24, as higher outward FDI, increased profit repatriation multinational companies, and rising cross-border investments by Indian firms offset the gains. Much of this outward technology, renewable energy, and other strategic global markets, signaling the growing ambition of Indian companies to establish a stronger international footprint. While the contrast between gross and net flows highlights the pressure of repatriations and overseas expansion, it also underscores a broader structural shift India is not only attracting significant foreign capital but also actively integrating into global value chains as both a capital recipient and investor abroad. This dual trend reinforces Indias evolving role in the global economy, moving beyond being a passive investment hub to becoming a more dynamic participant in cross-border capital and industry flows.

Growth of the Indian economy
	FY22	FY23	FY24	FY25
Real GDP growth (%)	9.7	7.6	9.2	6.5

(Source: MoSPI, Business Standard, Business Today, CRISIL Ratings, Press Information Bureau)

Growth of the Indian economy quarter by quarter, FY 2024-25
	Q1 FY25	Q2 FY25	Q3 FY25	Q4 FY25E
Real GDP growth (%)	6.5	5.6	6.4	7.4

Between March 2024 and March 2025, the gross NPAs of public sector banks fell from H3.40 lakh crore to H2.84 lakh crore, a decline of about H55,900 crore. The gross NPA ratio improved from 3.47% to 2.58%, reflecting a drop of nearly one percentage point within a single year. Although the pace of reduction was more moderate than in previous years, the trend underscores a shift towards stability, with stressed assets now at their lowest level in over a decade. This improvement stems not only from sustained recoveries and write-offs but also from stronger credit growth, tighter risk management practices, and a decline in fresh slippages. On the external front, Indias goods and services exports rose to USD 824.9 Bn in FY 2024-25 from USD 778 Bn in the previous year. Indias merchandise exports reached USD 437.42 Bn, a slight 0.08% rise from USD 437.07 Bn the previous year, driven by strong performance in sectors like coffee, tobacco, electronics, rice, jute, meat and dairy, tea, carpets, plastics, garments, pharmaceuticals, processed foods, minerals, engineering goods, and fruits and vegetables.

Tax collections also gained traction, with net GST receipts rising 8.6% to H19.56 lakh crore in FY 2024-25. Gross GST collections increased 9.4% year-on-year to H22.08 lakh crore.

On the supply side, real gross value added (GVA) is projected to increase by 6.4%. The agriculture sector is expected to recover, achieving 3.8% growth in FY 2024-25. The industrial sector is forecasted to expand by 6.2%, supported by strong growth in construction as well as electricity, gas, water supply, and other utility services. The services sector is anticipated to remain resilient, growing at 7.2%, led by robust activity in financial services, real estate, professional services, public administration, defence, and allied sectors.

Government final consumption expenditure (GFCE) strengthened, expanding 4.1% in FY 2024-25 after 2.5% growth in FY 2023-24, reflecting higher public spending. On the demand side, private final consumption expenditure was forecast to grow 7.3%, indicating revived rural demand and improving consumer sentiment. As a share of gross domestic product (GDP) at current prices, PFCE is estimated to increase from 60.3% in FY 2023-24 to 61.8% in FY 2024-25.

Financial markets posted mixed performances. The Nifty 50 and SENSEX advanced 5.34% and 5.1%, respectively, during FY 2024-25, while gold surged 37.7% to a record USD 3,070 per ounce its steepest rise since FY 2007-08 mirroring global uncertainty.

Indias mutual fund industry grew strongly, with assets under management climbing 23% (H12.3 lakh crore) to H65.7 lakh crore in FY 2024-25. Folios reached nearly 23.5 crore, an all-time high, while average monthly SIP contributions increased 45% to H24,113 crore. Foreign portfolio investment (FPI) flows were volatile through 2024, with net inflows of about USD 20 Bn by year-end. However, selling intensified in the final quarter following the imposition of fresh US tariffs on most trading partners, including India.

Indian real estate sector overview

Indias real estate market was valued at USD 482 Bn in 2024 and is projected to reach USD 1,184 Bn by 2033, growing at a compound annual growth rate (CAGR) of 10.50% between 2025 and 2033. West and Central India led the market, accounting for over 32.0% of the share in 2024. The sectors growth is underpinned by several structural drivers. Rapid urbanization expected to bring 40% of the population into urban areas by 2030 is fuelling demand for residential housing, office spaces, and retail hubs, alongside the need for essential infrastructure such as roads, schools, and hospitals. Government-led capital expenditure, with H11.20 Trn earmarked for FY 2025 26, is further strengthening infrastructure and acting as a catalyst for economic expansion. Rising disposable incomes are also playing a critical role, with Indias per capita income set to increase from USD 2,450 in 2023 to USD 4,000 by 2029, spurring demand for modern homes and premium office spaces. At the same time, technological advancements ranging from smart homes and energy-efficient designs to automated building systems are transforming consumer preferences, attracting tech-savvy buyers and tenants, and driving the shift towards sustainable, future-ready developments.

The calendar year 2024 marked a milestone for Indias real estate sector, with institutional investments reaching an all-time high of USD 8.9 Bn across 78 deals up 51% from 2023. This impressive growth in investment was mirrored by a 47% rise in deal volume. Foreign institutional investors led the charge, contributing 63% of the total inflows, while domestic investors made up the remaining 37%. In addition, platform commitments worth USD 2.4 Bn were announced for phased deployment over the next 3 5 years. Qualified Institutional Placements (QIPs) also gained traction, raising USD 2.7 Bn, reflecting confidence and signaling the sectors robust recovery.

In 2024, Indias real estate investment trends saw a marked shift. Residential assets took the leadwith45%oftotal surpassing the office segment at 28%, reversing the dominance seen in earlier years. Within housing, equity funding surged to 54%, moving away from the debt-heavy strategies of 2023.

Non-core assets accounted for 77% of transactions, up from 53% last year, underscoring investors growing appetite for higher-risk plays. Geographically, the Americas rebounded strongly with 26% of

20%. Overall, equity was the dominant choice, making up 78% of deployed capital.

(Source: ibef.org, Business Standard, JLL)

The residential real estate market in Indias top eight cities recorded steady momentum in FY 2024-25, with both launches and sales registering a 5% year-on-year growth. While markets such as

Pune and Bengaluru saw sharp increases in new supply, NCR and

Hyderabad witnessed moderationwhileAPAC in launches. Sales remained resilient across most cities, led by strong demand in Mumbai, Pune, and Bengaluru, which together accounted for 60% of the national sales share. The following table provides a detailed city-wise comparison of launches, sales, and contribution to overall market activity during FY 2023-24 and

FY 2024-25.

	Launches (units)				Sales (units)		% contribution
City	FY24	FY25	Change	FY24	FY25	Change	FY24	FY25
Mumbai	92,579	96,913	5%	90,314	97,374	8%	27%	28%
NCR	63,056	59,082	-6%	60,137	56,375	-6%	18%	16%
Bengaluru	52,188	59,403	14%	53,789	54,733	2%	16%	16%
Pune	44,190	62,486	41%	50,730	54,745	8%	15%	16%
Hyderabad	47,139	43,534	-8%	34,130	36,883	8%	10%	10%
Ahmedabad	22,307	22,512	1%	16,561	18,476	12%	5%	5%
Chennai	16,670	17,657	6%	15,220	16,645	9%	5%	5%
Kolkata	18,573	14,404	-22%	15,435	17,310	12%	5%	5%
Total	3,56,702	3,75,991	5%	3,36,316	3,52,541	5%

Key Statistics

The number of homes delivered across Indias top nine cities Bengaluru, Chennai, Hyderabad, Kolkata, Delhi-NCR, Mumbai, Thane, Navi Mumbai, and Pune rose by

33% in FY 2024-25 to 4,06,889 units. Over the past three financial years, more than 10 lakh homes have been delivered in these cities. Delhi-NCR was the only city to register a year-on-year decline, with home deliveries falling by 8% in FY 2024-25. In contrast, the other eight cities recorded growth ranging from 22% to 88%, led by

Kolkata (88%) and followed by Chennai (49%), Hyderabad (61%), and Pune (41%). Mumbai saw the smallest increase at 22%.

Western India (Mumbai, Navi

Mumbai, Thane, and Pune) accounted for 55% of all home deliveries in FY 2024-25, up from 53% in FY 2023-24. Southern

India (Bengaluru, Chennai, and Hyderabad) contributed 30%, up from 28%. Kolkatas share rose to 4% from 3%, while Delhi-NCRs share declined from 16% to 11%. Among individual cities, Pune topped the list with 81,563 homes delivered (41% growth), followed by Thane (77,017 units; 39% growth),

Hyderabad (57,304 units; 61% growth), Bengaluru (46,103 units; 26% growth), Delhi-NCR (44,423 units; 8% decline), Mumbai (41,999 units; 22% growth), Navi Mumbai (21,112 units; 37% growth), Chennai (19,650 units; 49% growth), and Kolkata (17,718 units; 88% growth).

Strong market sentiment, steady cash flows, and improved execution capabilities particularly among branded developers have contributed to this surge in home deliveries. The introduction of SWAMIH 2.0 is also expected to accelerate the completion of stalled projects.

This 33% increase in the number of homes delivered reflects the real estate sectors resilience and the growing efficiency of developers in meeting delivery timelines and aligning with buyer expectations. With a favourable policy environment, enhanced consumer confidence, and a focus on timely project execution, the sector is entering a more mature phase where delivery performance is emerging as a key indicator of developer credibility.

(Source: msn.com, PropEquity)

Pune

The Pune residential market reached a new peak in 2024, with average property prices rising 11% year-on-year to H6,590 per sq. ft. the highest level ever recorded. This marked the fifth consecutive year of price appreciation, with values surging nearly 40% since 2020, underscoring the strength of the citys ongoing growth cycle.

However, sales volumes moderated, slipping 5% to 90,127 units in 2024 from 94,500 units in 2023 and over one lakh units in 2022. New launches also declined slightly to 91,400 units, as developers adopted a more cautious approach in response to softening demand. Despite this moderation, Punes housing market continues to demonstrate resilience. Micro-markets located near IT and industrial hubs remain strong growth drivers, supported by the citys robust employment base and strategic location. Demand is increasingly skewed toward affordable and mid-segment housing, aided by government incentives and accessible financing, while the premium and luxury segments continue to attract steady interest from affluent buyers. Integrated townships are also gaining traction, offering a self-sustained ecosystem that combines residential, commercial, and lifestyle amenities within a single development.

The rental market remains a key strength for Pune, with areas such as Hinjewadi, Kalyani Nagar, and Koregaon Park enjoying strong demand due to their proximity to workplaces and educational institutions. This ensures healthy and consistent rental yields, making the city an attractive destination for buy-to-let investors.

Looking ahead, infrastructure expansion including metro rail connectivity, new road networks, and the proposed international airport is set to open up fresh growth corridors.

These projects are expected to enhance connectivity, improve livability, and drive sustained long-term appreciation across both established and emerging residential markets.

Mumbai

Mumbais residential real estate market recorded a remarkable performance in calendar year 2024, driven primarily by a surge in demand for high-end and luxury homes. Significant growth was seen in the H5 10 crore and H20 50 crore price segments, reflecting a strong shift in buyer preferences toward larger and more premium properties. Launch activity closely tracked this trend, with developers aligning their offerings to cater to this The citys housing market continues on a robust growth trajectory, underpinned by sustained appetite for premium homes and transformative infrastructure upgrades. One of the most notable developments in 2024 was the 143% year-on-year surge in sales in the ultra-luxury H20 50 crore segment, with transactions rising from 79 units in 2023 to 192 units. The H10 20 crore category also saw a sharp rise, growing by 68% YoY to 360 units. Sales in the H5 10 crore bracket more than doubled, registering 112% growth to 1,866 units.

Mumbai led all Indian cities in sales of luxury homes priced between H20 50 crore, reinforcing its position as the countrys premier luxury real estate destination. While premium and luxury segments flourished, the above- H50 crore segment experienced a 60% decline in sales, from 255 units in 2023 to 101 in 2024. Mid-range housing also showed strong momentum. The share of homes priced between H1 2 crore rose to 20% in 2024 from 17% in the previous year, while the H2 5 crore category expanded its market share from 6% in 2023 to 10% in 2024, highlighting growing aspirations among mid-income buyers for more spacious and well-appointed homes.

Despite the increasing demand demand. in the H1 2 crore range, a bulk of the new supply in 2024 was concentrated in higher price brackets, echoing homebuyers growing interest in expansive, upscale living. Larger apartments and premium amenities were key drivers, particularly in the H20 50 crore range.

High-net-worth individuals (HNIs) dominated the luxury segment, with most being repeat buyers. A majority of these transactions involved under-construction properties, with redevelopment projects accounting for a modest 5 7% of deals.

Mumbai also registered a 5% annual increase in housing prices, with the average weighted price reaching H8,277 per sq ft the highest among Indias top eight cities. Central Mumbai and South Mumbai witnessed the steepest appreciation, with prices rising by 8% and 7%, respectively. A stable macroeconomic environment and rising household incomes gave buyers confidence to invest in property as a long-term wealth asset. Rapid infrastructure upgrades including the Mumbai Coastal Road, metro network expansion, and trans-harbour link significantly boosted connectivity, enhancing demand in both central and suburban micro-markets. The shift in lifestyle aspirations post-pandemic, with families seeking larger apartments and integrated amenities, accelerated momentum in mid-to-premium housing segments. Importantly, affluent buyers and HNIs dominated luxury transactions, particularly in the H5 50 crore range, with demand concentrated in under-construction projects. Developers aligned closely with these trends by launching premium and luxury projects, especially in central and western suburbs, ensuring supply kept pace with rising expectations. Industry leaders highlight that Mumbais housing market now reflects a maturing demand cycle where buyers value connectivity, spacious design, and lifestyle-driven developments. The outlook is optimistic on account of interest rate easing, continued infrastructure investments, and government policy support, all of which position the citys real estate sector for sustained momentum in FY 2025 26.

Bengaluru

In calendar year 2024, Bengalurus residential real estate market experienced a modest 2% increase in housing sales compared to 2023, largely fueled by a strong surge in demand for luxury homes particularly those priced between H2 crore and H5 crore. The city recorded 55,362 units sold, up from 54,046 units in the previous year.

This growing appetite for premium housing led to a decade-high in new residential launches. Developers ramped up activity in the luxury and ultra-luxury segments, introducing around 56,014 new units in 2024 a 10% year-on-year increase underscoring the influx of high-value projects in the market. The most significant growth was observed in the H2-5 crore price band, where sales soared 91% year-on-year to 9,584 units, up from 5,014 units in 2023. The H5-10 crore segment also grew by 58%, reaching 552 units, while the H10-20 crore segment rose 20% to 89 units in 2024. Even the ultra-luxury bracket of H20-50 crore witnessed activity, with 5 units sold.

Among Indias top eight cities, Bengaluru led sales in the H1-2 crore category, selling 19,744 units accounting for 22% of the total 90,814 units sold across these markets. This segment grew 45% from 13,626 units in 2023 and made up 36% of the citys total residential sales.

In contrast, mid and affordable housing segments saw a notable slowdown. Sales in the H50 lakh to H1 crore range dropped 22% year-on-year to 21,000 units (from 26,836 in 2023), while the sub-H50 lakh segment recorded a steep 46% decline, falling from 8,141 units to 4,388 units.

To cater to rising luxury demand, developers have introduced larger layouts and upgraded amenities, which have been well-received by buyers. With increasing incomes and ease of finance, the financial comfort zone for many homebuyers has shifted from H50 lakh to the H1 1.5 crore bracket, with increasing interest now seen in the H2 5 crore range.

Buyers in this bracket are primarily senior professionals and corporate executives purchasing homes for end use. A smaller portion includes NRIs investing in H2 3 crore properties. Geographically, demand is concentrated in the eastern IT corridor particularly Whitefield and in northern Bengaluru, including Hebbal and Yelahanka.

(Source: Hindustan Times)

Growth drivers

Growing premiumization: A significant share of new housing supply is concentrated in the luxury bracket~ 59% with 44% of launches in Delhi NCR, 20% in Hyderabad, and 12% in the Mumbai Metropolitan Region (MMR) priced above H2.5 crore highlighting the rising appetite for premium homes among affluent domestic and overseas buyers.

Rising urbanization: Indias urban population is expected to rise from 31% in 2011 to 50% by 2050, significantly expanding housing demand and driving real estate growth in cities and emerging urban centers.

Green buildings on the rise: Indias green building market is projected to grow at a compound annual growth rate (CAGR) of over 5% between 2023 and 2028. Valued at USD 30.24 Bn in 2023, the sector previously expanded at a CAGR of 7.5% from 2017 to 2022. As India advances toward its goal to achieve net-zero emissions by 2070, the widespread adoption of green building practices will be critical to driving sustainable development, conserving resources, and improving overall quality of life.

Tax rationalization and housing demand: Recent income tax relief measures under the Union Budget 2025 improved disposable incomes, especially among younger buyers, boosting residential investment. The increase in the TDS threshold on rental income from H2.4 lakh to H6 lakh is expected to ease compliance and promote rental housing. The new tax regime now provides zero income tax liability for annual incomes up to H12 lakh, effectively extended

to H12.75 lakh when factoring in standard deductions leaving more disposable income with middle-income earners. Collectively, these measures are expected to improve household savings and support higher investment in residential real estate.

Rising disposable incomes: Indias per capita disposable income has grown from USD 2,110 in 2019 to an estimated USD 2,690 in 2024, and is projected to reach USD 4,210 by 2029, driven by job creation, urbanization, and a rapidly expanding middle class. This growth is reshaping consumption, with households increasingly spending on premium products across automobiles, electronics, lifestyle goods, real estate, healthcare, and financial services. Government policies, including tax reforms, financial inclusion, and infrastructure investments, alongside the rise of dual-income households in urban centres, are amplifying purchasing power, making disposable income a key catalyst for Indias evolving consumer economy and long-term GDP growth.

Renewed focus on affordable housing: The government launched a second H15,000 crore SWAMIH fund to address stalled affordable and mid-income housing projects. This move is set to benefit homebuyers awaiting possession and inject fresh capital into the segment.

Infrastructure push: The H15.5 lakh crore capital expenditure planned for FY 2025-26 aims to spur growth across sectors. PPP pipelines and H1 lakh crore in the Urban Challenge Fund will accelerate urban transformation, especially in tier-2 and tier-3 cities, boosting real estate demand.

(Source: KPMG, Economic Times, Financial Express, Indian Express, Anarock)

Government policies

Smart city mission: Launched in 2015, the Smart City Mission is a flagship initiative by the Government of India aimed at transforming urban centers into sustainable, efficient, and technology-driven ecosystems. The mission focuses on enhancing citizens quality of life, boosting economic productivity, and ensuring long-term urban sustainability. Under this program, 100 cities across India are being developed with advanced infrastructure, integrated services, and smart technology solutions.

Affordable housing policy: As part of the Union Budget 2024 25, the government expanded the Pradhan Mantri Awas Yojana Urban 2.0, targeting the housing needs of 1 crore urban poor and middle-class families. The initiative includes a proposed investment of H10 lakh crore over the next five years, with H2.2 lakh crore allocated as central assistance.

Regulatory framework and government reforms:

Policy interventions have played a pivotal role in reshaping the real estate sector. The introduction of the Real Estate (Regulation and Development) Act (RERA) has enhanced transparency, accountability, and consumer protection. RERA mandates the registration of real estate projects and agents, as well as the disclosure of project timelines, approvals, and financials instilling greater buyer confidence and encouraging investment.

Benami Transactions (Prohibition) Amendment Act:

This legislation strengthens the framework to curb benami transactions where properties are held in the name of one person while the actual beneficiary is another. The amendment to the original 1988 Act aims to combat black money, prevent tax evasion, and deter the misuse of real estate for illicit activities. The law empowers authorities to confiscate benami properties and imposes stringent penalties on violators.

Industry SWOT analysis

Strengths

Strong market growth and economic fundamentals: India is the fastest growing economy in the world, growing more than twice the global GDP growth rate of 3.2%. In addition to this, the real estate market is expected to grow to USD

1 Trn in 2030 supported by growing premiumization, rising disposable income and infrastructure reforms.

Government policy support and regulatory framework: The real estate sector benefits from strong government backing through initiatives like Pradhan

Mantri Awas Yojana (PMAY), tax benefits on home loans, and the implementation of RERA (Real Estate Regulatory Authority) which has enhanced transparency and buyer confidence.

Real estate as a favourable investment avenue: The Indian real estate market is evolving rapidly, driven by urbanization, a growing middle class, and major infrastructure projects that are creating new investment hotspots. Supported by reforms like RERA, affordable housing incentives, and rising NRI investments, the sector enjoys strong transparency and accessibility. With higher disposable incomes and expanding urban aspirations, real estate in India is not just about homeownership but also a reliable avenue for long-term financial

Technology integration: The real estate sector is embracing digital transformation, sustainability initiatives, and innovative construction technologies, positioning itself for future growth and efficiency improvements.

Weaknesses

High land and development costs:

Escalating land costs, particularly in prime urban locations, continue to pressure developers margins and make housing less affordable for middle-income buyers. This cost inflation affects project viability and pricing strategies.

Complex regulatory environment:

Despite RERAs benefits, the regulatory framework remains complex with multiple approvals required at various levels. Developers face increased compliance burdens, documentation requirements, and administrative processes that can delay project initiation and execution.

Infrastructure congestion: Major cities suffer from congested infrastructure, inadequate transportation networks, and utility constraints that limit development potential and affect the quality of life in urban areas.

Fragmented market structure:

The industry still retains some characteristics of a fragmented market, with numerous small and medium developers operating alongside larger organized players, leading to inconsistent quality and service standards.

Opportunities

Urbanization and demographic dividend: Indias rapid urbanization, growing young population, and expanding middle class present massive opportunities for residential and commercial real estate development. Rising urban aspirations and changing lifestyle preferences are creating new market segments.

.

Emerging asset classes:

Beyond traditional residential and commercial properties, opportunities exist in coworking spaces, data centers, warehousing, senior living facilities, and student housing, driven by changing economic patterns and demographic needs.

Tier-II and Tier-III city expansion:

Secondary cities offer significant growth potential with lower land costs, improving infrastructure, and increasing corporate presence. These markets present opportunities for affordable housing and commercial development.

Sustainable and Green Building initiatives: Growing environmental consciousness and regulatory push towards sustainability create opportunities for green buildings, energy-efficient constructions, and environmentally responsible development practices.

Digital real estate platforms: The acceleration of digital adoption opens opportunities for prop-tech solutions, online property transactions, virtual property tours, and digital marketing platforms that can enhance customer experience and operational efficiency.

Infrastructure development projects: Government investments in smart cities, metro connectivity, highways, and airport expansions create opportunities for real estate development in previously less accessible areas.

Threats

Economic Uncertainty and Interest

Rate Fluctuations: Global economic volatility, potential interest rate increases, and inflation can affect buyer affordability, financing costs, and overall market sentiment, potentially dampening demand.

Regulatory Changes and Policy

Uncertainty: Frequent changes in real estate policies, taxation structures, and regulatory requirements can create uncertainty for developers and investors, affecting long-term planning and project viability.

Oversupply in Certain Segments:

Risk of oversupply in premium housing segments in major cities could lead to inventory buildup and pricing pressures, particularly if economic growth slows or buyer preferences shift.

Environmental and Climate

Risks: Climate change impacts, environmental regulations, and sustainability requirements may increase development costs and restrict construction in certain areas, affecting project feasibility.

Competition from Alternative

Investment Avenues: Growing attractiveness of stock markets, mutual funds, and digital assets may divert investment away from real estate, particularly among younger investors seeking higher liquidity and returns.

Legal and Title-Related Issues:

Despite RERA implementation, title disputes, litigation risks, and property-related legal challenges continue to pose threats to developers and buyers, potentially affecting market confidence.

Technology Disruption: While technology presents opportunities, it also threatens traditional real estate models through innovations like virtual workspaces, which could reduce demand for commercial

Company overview

Established in 1991, Kolte-Patil Developers Ltd. (KPDL) has been a prominent force in the Indian real estate sector for nearly three decades. Headquartered in Pune and listed on both NSE and BSE (BSE: 532924, NSE: KOLTEPATIL), the Company operates with a clear and compelling philosophy: ‘Creation, not construction. KPDL has successfully delivered over 68 landmark projects, spanning residential complexes, commercial spaces, and IT parks, with a cumulative saleable area of over 30 Mn square feet across Pune, Mumbai, and Bengaluru.

The Company enjoys a particularly dominant position in Pune, where it has established itself as a market leader in the residential segment, consistently setting benchmarks in design, quality, and timely delivery. Known for its commitment to quality, design excellence, and transparency, Kolte-Patil has earned the trust of homebuyers and investors alike. The Company is stewarded by a team of experienced leaders. It is dedicated to creating spaces that are not only relevant today but also adaptable for the future—spaces that harmonize with their environment and offer both aesthetic and functional value. Kolte-Patils core values honesty, innovation, excellence, sustainability, value creation, and on-time delivery are deeply ingrained in every project it undertakes.

The Companys prudent financial management is underscored by a ‘CRISIL AA-/Stable rating for its long-term bank facilities and non-convertible debentures the highest rating awarded by CRISIL to any publicly listed residential real estate developer in India.

Profit and Loss account

Particulars	FY 2024-25	FY 2023-24	Change in %
		(Restated)
Revenue from operations (H in crore)	1,088.60	579.14	88%
EBITDA (H in crore)	105.25	(59.80)	-
EBITDA margin (%)	9.67%	-10.33%	-
Profit before tax (PBT) (%)	91.36%	(102.24)	-
PBT margin (%)	8.39%	-17.65%	-
Net profit/loss after tax H in crore)	68.62	(71.26)	-
PAT margin (%)	6.30%	-12.30%	-

Key financial

Particulars	FY 2024-25	FY 2023-24	Reason for variance	% change
		(Restated)
Current ratio	0.97	1.03	Variance is on account of decrease in net current asset in current year.	-6%
Debt-Equity ratio	1.53	1.43	Variance is on account of increase in borrowings in current year.	7%
Debt Service Coverage ratio	0.27	0.00	Variance is on account of higher increase in earnings against slight increase in debt repayment in current year as compared to previous year.	14716%
Return on Equity ratio	0.09	(0.09)	Variance is mainly on account of profit in current year against loss in previous year.	-
Inventory Turnover ratio	0.41	0.27	Variance is on account of higher increase in cost of goods sold against slight increase in average inventory during the year.	52%
Trade Receivable Turnover ratio	56.99	31.77	Variance is mainly on account of increase in revenue in current year compared to previous year.	79%
Trade Payable Turnover Ratio	0.46	0.53	Variance is on account of increase in trade payables in the current year.	-14%
Net Capital Turnover Ratio	(14.77)	8.24	Variance is mainly on account of increase in revenue during the year and negative working capital in current year.	-279%
r NetProfit	0.06	(0.11)	Variance is mainly on account of profit in current year against loss in previous year.	-
Return on Capital Employed	0.07	(0.02)	Variance is mainly on account of increase in earnings in current year as compared to previous year.	-
Return on Investment	0.10	0.13	Variance is mainly on account of decrease in current year investments.	-22%

Risk management

Market risk

Real estate companies face market risk arising from fluctuations in property prices and demand. An economic downturn can result in lower property valuations, reduced sales, and diminished profitability.

Mitigation: Kolte-Patil mitigates this risk by diversifying its portfolio across geographies particularly in Pune, Mumbai, and Bengaluru thereby reducing dependency on any single market.

Interest rate risk

Changes in interest rates affect borrowing costs and can influence real estate demand. Rising rates may lead to higher financing expenses and deter homebuyers.

Mitigation: Kolte-Patil maintains a low net-debt-to-equity ratio, diversified funding sources, and healthy cash reserves. The Company also proactively monitors its liquidity position. During high interest rate cycles, demand is stimulated through targeted incentives and buyer-friendly pricing.

Raw material cost risk

Volatility in raw material prices can escalate construction costs and pressure margins, especially when market conditions limit price pass-through.

Mitigation: Kolte-Patil leverages long-standing supplier relationships and negotiates fixed-price contracts where feasible to ensure cost predictability and mitigate input cost inflation.

Liquidity risk

Liquidity constraints can hamper project execution, inflate financing costs, and limit future investments. Mitigation: The Company ensures steady cash inflows through robust sales and collections. It maintains strong refinancing capabilities and access to undrawn bank lines. As of 31 March, 2025, Kolte-Patil had a development pipeline of 36 Mn sq. ft., with undrawn bank facilities of H362.65 crore and cash and liquid investments of H481 crore.

Political and regulatory risk

Changes in government policies, zoning laws, and environmental regulations can delay or derail real estate projects.

Mitigation: Kolte-Patil actively tracks regulatory developments, engages with local authorities, and conducts comprehensive due diligence during land acquisition to preempt potential issues.

Competitive risk

Intensifying competition from peers may affect market share, pricing power, and customer acquisition.

Mitigation: Kolte-Patil focuses on product differentiation, customer satisfaction, and innovation. Strategic partnerships and disciplined financial management further support sustainable, long-term growth.

Internal control systems and adequacy

Kolte-Patil Developers Limiteds risk management system and internal control align with the principles and criteria mentioned in the corporate governance code. It is an integral and important part of the whole organizational structure involving coordination among various individuals to fulfil their responsibilities. The Board of Directors gives guidance, supervises strategy to the executive directors and management, and overviews monitoring and support committees of the Company. PWC is the Internal Auditor of the Kolte-Patil.

Human resources

The Company places great importance on its motivated and dedicated employees, considering them its most valuable asset and the foundation of long-term success. A healthy, transparent, and purpose-driven work environment is fostered, supported by competitive compensation, structured recognition and reward frameworks, and equitable opportunities for growth. Career advancement is enabled through internal academies, digital learning platforms, cross-functional exposure, and certification initiatives, ensuring clear pathways for progression. The Company also encourages voluntary projects beyond the scope of work to nurture creativity, innovation, and personal growth. Its human capital strategy emphasizes leadership development, inclusive hiring, data-driven decision-making, and continuous capability building across functions. As on 31 March, 2025, the Company had a strength of 1,020 employees, with a retention rate of over 82%, and 43% of the workforce having been associated with the organization for more than five 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.