Maharashtra Corporation Ltd Management Discussions

ANNEXURE-IV

Pursuant to Schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Management Discussion and Analysis Report is as under:

Forward-Looking Statements Disclaimer

Readers are cautioned that this Management Discussion and Analysis contains forward-looking statements that involve risks and uncertainties. When used in this discussion, the words

"anticipate", "believe", "estimate", "intend", "will", "expected" and other similar expressions as they relate to the Company or its business are intended to identify such forward-looking statements, whether as a result of new information, future events or otherwise. Actual results may vary from those expressed or implied.

The important factors that could make a difference to the Companys operations include economic conditions affecting demand, supply and price conditions in the domestic markets, changes in raw material and property prices, changes in Government policies and regulations, taxation laws and other statutes, economic developments within India, availability of finance, competitive conditions and other incidental factors.

The Company undertakes no obligation to publicly amend, modify or revise any forward-looking statements on the basis of any subsequent developments, information or events. The discussion and analysis should be read in conjunction with the Companys financial statements included in this Annual Report and the notes thereto.

Outlook

The global economic environment during FY 2025-26 remained resilient despite geopolitical tensions, trade-related uncertainties, fluctuations in commodity prices and evolving financial conditions. According to the International Monetary Fund, global growth is projected at around 3.0% for 2026, with the global outlook influenced by geopolitical developments, energy prices, inflationary pressures and changing trade conditions.

The Indian economy continued to demonstrate strong underlying fundamentals during FY 2025-26. As per the latest estimates released by the Ministry of Statistics and Programme

Implementation, Indias real GDP is estimated to have grown by 7.6% during FY 2025-26, supported by robust domestic consumption, investment activity and growth across manufacturing and services sectors.

The outlook for the Indian economy remains positive, supported by infrastructure development, urbanization, increasing disposable incomes, digitalisation, policy initiatives and continued investments in physical and digital infrastructure.

For the real estate sector, the long-term outlook remains encouraging on account of increasing urbanisation, rising demand for residential and commercial properties, improving infrastructure connectivity and increasing institutional participation. At the same time, the sector continues to remain sensitive to interest rates, regulatory developments, construction costs, availability of funding and overall economic conditions.

The Company will continue to evaluate opportunities prudently and focus on sustainable growth, efficient utilisation of resources and appropriate risk management while pursuing its business objectives.

About your Company

Originally incorporated on November 24, 1982, as Maharashtra Industrial Leasing and Investments Limited under the provisions of the Companies Act, 1956, with the Registrar of Companies, Mumbai, Maharashtra, the Company subsequently underwent changes in its name to reflect its evolving business interests.

The Company was renamed Maharashtra Overseas Limited on May 31, 2006, and subsequently adopted the name Maharashtra Corporation Limited on March 23, 2011.

The main objects of Maharashtra Corporation Limited include investing, trading and distributing various textile products, commodities and goods. The Companys diverse product portfolio includes gunnies, handicrafts, hessian, tea, shellac, hides, cotton and other commodities.

In addition, the Company expanded its business horizons by passing a Board Resolution on December 13, 2021, to include real estate business as an additional main object of the Company.

The shareholders approval for such diversification was subsequently obtained through a special resolution passed at the Extraordinary General Meeting held on January 29, 2022.

The Company continues to evaluate opportunities in its existing businesses as well as in the real estate sector with a view to creating sustainable long-term value for its stakeholders.

ECONOMIC OVERVIEW

India continued to remain one of the fastest-growing major economies during FY 2025-26. As per the latest estimates of the Ministry of Statistics and Programme Implementation, Indias real

Gross Domestic Product (GDP) is estimated to have grown by 7.6% in FY 2025-26, compared with growth of 7.1% in FY 2024-25 under the revised GDP series.

The economic performance during FY 2025-26 was supported by robust activity in manufacturing and services, strong domestic consumption and continued investment activity. Private Final Consumption Expenditure recorded growth of approximately 7.7%, while Gross Fixed Capital Formation grew by approximately 7.1% during the year.

The manufacturing sector remained an important contributor to economic growth, while the services sector continued to benefit from strong activity across financial services, real estate, professional services, transport, communication and other service segments.

Government initiatives relating to infrastructure development, digitalisation, manufacturing, urban development and investment promotion continued to support economic activity. Continued development of roads, railways, airports, digital infrastructure and urban infrastructure is expected to provide a favourable foundation for long-term economic expansion.

Despite the positive domestic outlook, risks remain from geopolitical tensions, global trade uncertainties, commodity price volatility, fluctuations in interest rates, inflationary pressures and disruptions to global supply chains. The resilience of domestic demand and the continued focus on structural reforms, however, provide support to Indias medium- and long-term growth prospects.

REAL ESTATE INDUSTRY

The Indian real estate sector continues to be an important contributor to economic activity, employment generation and urban development. The sector comprises residential, commercial, retail and hospitality segments and is closely linked with growth in infrastructure, urbanisation, employment and household incomes.

During FY 2025-26, the Indian real estate market continued to witness healthy demand across major urban centres. Residential demand remained supported by improving household incomes, changing lifestyle preferences, urbanisation and increased preference for quality housing.

The commercial real estate segment also continued to benefit from demand for office and business spaces, supported by Indias expanding services economy, technology sector and growing presence of global businesses.

MARKET OUTLOOK

The long-term growth prospects of the Indian real estate sector remain positive. Increasing urbanisation, infrastructure development, rising aspirations of consumers and improving connectivity between urban and semi-urban locations are expected to support demand for residential and commercial properties.

Institutionalisation of the sector has also increased, with greater participation from institutional investors, private equity funds and Real Estate Investment Trusts (REITs). The increasing formalisation of the real estate market and greater emphasis on transparency and regulatory compliance are expected to strengthen investor and consumer confidence.

The sector, however, continues to face challenges relating to land availability, regulatory approvals, financing costs, construction costs, interest rates and competitive intensity.

PROSPECT & OUTLOOK

The management is of the view that the prospects of the Company remain positive. The

Companys decision to diversify into the real estate sector provides opportunities to participate in a growing segment of the Indian economy and create additional avenues for long-term value creation.

The real estate business may provide opportunities through property development, acquisition, sale, leasing and other related activities, subject to suitable opportunities and commercial viability.

The Company intends to evaluate projects carefully, with due consideration to location, market demand, regulatory requirements, capital requirements, expected returns and associated risks.

The management remains committed to prudent capital allocation, compliance with applicable laws and regulations, transparency in operations and protection of stakeholders interests.

The Company will continue to monitor developments in the real estate and trading businesses and assess suitable opportunities for sustainable growth.

OPPORTUNITIES AND THREATS

Opportunities

Diversification of business activities into Real Estate and Trading. Increasing demand for residential and commercial properties. Rising urbanisation and development of urban and semi-urban areas. Long-term appreciation potential of well-located real estate assets.

Government initiatives supporting infrastructure and real estate development. Increasing institutional participation and formalisation of the real estate sector. Technology integration and digitalisation of business processes.

Opportunities arising from Indias long-term economic growth.

Potential for attracting investment for commercially viable real estate projects.

Threats

Changes in local, state and national regulatory requirements.

Changes in economic conditions and consumer purchasing behaviour. Rising interest rates and financing costs. Inflation and volatility in construction and other input costs. Intense competition in the real estate and trading sectors. Financing and liquidity challenges for real estate projects. Delays in statutory approvals and project execution. Supply chain disruptions resulting in increased costs and delays.

Cybersecurity and data privacy risks arising from increasing technology dependence.

Environmental regulations and sustainability-related requirements. Geopolitical developments and their impact on economic activity

RISK FACTORS

The following factors may affect the Companys operations and financial performance. These risks are not exhaustive and the Company may face additional risks and uncertainties that may not presently be known or may not be considered material.

Fluctuations in prices and changes in demand and supply. Changes in economic and market conditions. Increase in operational costs. Changes in product and market mix. Currency exchange rate volatility. Changes in Government and local regulatory policies. Availability of Government benefits and incentives. Fundraising and financing challenges. Availability and retention of skilled personnel. Competitive pressures. Delays in project execution and completion. Changes in interest rates and inflation. Availability of raw materials and other resources. Machinery or equipment breakdown, wherever applicable. Disruption in power and other essential services. Labour-related disruptions. Emergence of product substitutes or technological innovations. Impact of natural calamities. Force majeure events. Insufficient funding or liquidity. Cancellation or delay of business transactions. Legal disputes and compliance-related risks. Cybersecurity threats and data breaches. Environmental and sustainability-related risks.

FINANCIAL OVERVIEW

During FY 2025-26, the Company recorded revenue from operations of 4.50 lakh, as compared to 155.00 lakh in FY 2024-25. The Company reported a loss after tax of 36.62 lakh during FY 2025-26, as against a profit after tax of 8.72 lakh in the previous financial year. Consequently, the Net Profit Ratio stood at -813.78% during FY 2025-26 as compared to 5.63% in FY 2024-25.

The Companys Net Capital Turnover Ratio stood at 0.01 times during FY 2025-26 as compared to 0.02 times in FY 2024-25. The Return on Capital Employed (ROCE) was -0.58% during FY 2025-26 as compared to 0.02% in the previous year.

The Return on Equity Ratio stood at -0.59% during FY 2025-26, compared with 0.00% in FY 2024-25. The Return on Investment has been considered N.A. for FY 2025-26 as well as FY 2024-25.

The Companys Debt-Equity Ratio remained negligible at approximately 0.00 times during FY 2025-26. The Current Ratio was -38.56 times as against 20.69 times in FY 2024-25, primarily due to the negative closing current liabilities reported at the end of FY 2025-26.

The Inventory Turnover Ratio remained at 0.00 times during both FY 2025-26 and FY 2024-25, as no cost of goods sold was reported in the ratio calculation. The Trade Receivables Turnover Ratio declined to 0.01 times during FY 2025-26 from 0.37 times in FY 2024-25, in line with the significant reduction in revenue from operations during the year.

The Trade Payables Turnover Ratio remained at 0.00 times during both years. The Debt Service Coverage Ratio (DSCR) has been considered Not Applicable (N.A.), as detailed interest and principal debt-service information was not available in the supplied financial statements.

Key Financial Ratios

Particulars	FY 2025-26	FY 2024-25
Net Profit Ratio	-813.78%	5.63%
Net Capital Turnover Ratio	0.01 times	0.02 times
Return on Capital Employed (ROCE)	-0.58%	0.02%
Return on Equity	-0.59%	0.00%
Return on Investment	N.A.	N.A.
Debt Service Coverage Ratio	N.A.	N.A.
Debt-Equity Ratio	0.00 times	0.00 times
Current Ratio	-38.56 times	20.69 times
Inventory Turnover Ratio	0.00 times	0.00 times
Trade Receivables Turnover Ratio	0.01 times	0.37 times
Trade Payables Turnover Ratio	0.00 times	0.00 times

RISK MANAGEMENT

The Company has established a risk management framework to identify, assess, manage and mitigate risks arising from both external and internal factors.

Risk identification and assessment are undertaken periodically to identify strategic, operational, financial and compliance-related risks. The identified risks are evaluated based on their likelihood and potential impact, and appropriate mitigation measures are considered.

The principal risks faced by the Company include fluctuations in demand and prices, changes in economic and regulatory conditions, financing and liquidity risks, competitive pressures, project execution risks, changes in interest rates, geopolitical developments and technology-related risks.

As the Company continues to explore opportunities in the real estate sector, particular attention is required towards project feasibility, regulatory approvals, funding requirements, market demand, execution timelines and compliance with applicable laws.

The management continuously monitors the risk environment and takes appropriate measures to mitigate identified risks. The Company remains committed to strengthening its risk management practices in line with the scale and nature of its operations.

INTERNAL CONTROL SYSTEMS & ADEQUACY

The Company has established internal control systems designed to provide reasonable assurance that its assets are safeguarded, transactions are executed in accordance with managements authorisations and properly recorded, and accounting records are adequate for the preparation of financial statements and other financial information.

The internal control framework includes appropriate processes for financial reporting, authorisation of transactions, monitoring of assets and compliance with applicable laws and regulations.

Internal checks are conducted periodically to assess the adequacy and effectiveness of the internal control systems. The management reviews significant operational and financial matters and takes corrective action, wherever required.

The Company believes that its existing internal control systems are adequate and commensurate with the size and nature of its operations.