Mahindra Lifespace Developers Ltd Management Discussions

Mahindra Lifespace Developers Limited ("Mahindra Lifespaces”, "MLDL” or "the Company”) is a real estate development company in India. Through its subsidiaries and joint ventures (JVs), the Company is engaged in the development of residential projects, as well as industrial developments comprising integrated cities and industrial clusters (IC&IC).

Over the years, the Company has built a diversified portfolio of developments and established benchmarks in environmentally responsible residential communities and industrial ecosystems. The Companys performance during FY 2025-26 reflects continued execution across its residential and industrial businesses, supported by sustained demand and focused strategic priorities.

MACROECONOMIC OVERVIEW

Indias economy continued to demonstrate steady growth during FY 2025-26, supported by sustained domestic demand, investment activity and structural reforms. According to the First Advance Estimates released by the National Statistics Office (NSO), real GDP is estimated to grow by 7.4% in FY 2025-26.

Growth during the year was supported by strong performance across services and manufacturing, while agriculture recorded moderate expansion. Construction activity, a key driver for the real estate sector, continued to register healthy growth within the broader industrial segment.

GROWTH RATE (%) - GDP AND KEY SECTORS (FY 2025-26)

Sector	FY 2025-26 (AE)
Construction*	7.0% (approx.)
Agriculture	3.1%
Industry	7.0%
Services	7.3%
GDP	7.4%

^Construction is part of the secondary sector (Industry) as per NSO classification

Source: National Statistics Office (NSO), Ministry of Statistics and Programme Implementation, Government of India

OPPORTUNITIES

Indias macroeconomic environment continues to support long- term growth prospects for the real estate sector Key drivers include sustained income growth (lower-mid and upper-mid income households projected to grow from 54% in 2018 to 78% by 2030). Regulatory reforms, including RERA, GST, and the insolvency framework, have strengthened sector transparency and accelerated consolidation, resulting in a continued shift towards organised and credible developers whose share to increase from 23% in 2021 to an estimated 40-50% by 2030.

Premiumisation is reshaping the residential landscape. The affordable segments share in terms of volume has declined from 48% to 17% over the past five years, while the premium/mid- premium segment has grown from 46% to 69% and the luxury segment has more than doubled from 6% to 14%. Consumer preferences are also evolving as average unit sizes have risen 40% in just four years, from 1,180 sq.ft. in 2021 to 1,657 sq.ft. in 2025 driven by a post-pandemic desire for work-from-home spaces, balconies, and open areas. While some moderation in sales is visible in 2025 due to a lag in approvals and launches, underlying demand fundamentals remain intact, with premiumisation continuing to drive pricing growth.

Indias industrial real estate sector is entering a period of strong, policy-backed expansion. Manufacturing FDI flows into India have risen from US$ 8 bn in 2016 to US$ 19 bn in 2025, reflecting Indias growing attractiveness as a global manufacturing hub. By 2030, Indias economy is projected to reach approximately US$ 7.3 trillion, with manufacturings share of GDP set to grow from 17% to 25%. This is being enabled by structural reforms, Production Linked Incentive schemes worth 1.9 lakh Cr across 14 sectors, 2,500 Cr earmarked for plug-and-play industrial parks, and a 10,000 Cr growth fund for SME businesses creating significant demand for high-quality, well-connected industrial infrastructure

Against this backdrop, Mahindra Lifespace Developers Limited remains well positioned across both residential and industrial businesses, supported by its established development platform and execution track record. The Companys long-term growth ambition continues to be reflected in its stated aspiration to scale sales to ^10,000 crore by 2029-30.

RESIDENTIAL DEVELOPMENTS

The residential strategy continues to focus on a calibrated portfolio approach across markets, product segments, and development models. The Company continues to maintain its focus on MMR, Pune and Bengaluru, where demand remains structurally strong.

The portfolio remains oriented towards premium/mid-premium housing segments, with a gradual reduction in exposure to the affordable housing segment. The emphasis continues to be on delivering sustainable developments, differentiated design, and customer-centric innovations that enhance the overall living experience with aggressive premiumization including upgrades to key project elements and elevation of project quality.

The development strategy continues to balance outright land acquisition with asset-light models such as joint developments (JDs) and society redevelopment, both of which remain important drivers of growth and capital efficiency. There is also sharp CX focus across touchpoints and functions by leveraging technology and streamlining processes along with significant improvement in project execution through focused QCT initiatives and governance mechanism.

INTEGRATED CITIES AND INDUSTRIAL CLUSTERS (IC&IC)

Mahindra Lifespace Developers Limited continues to strengthen its position in the Integrated Cities and Industrial Clusters (IC&IC) segment, operating through Integrated Cities under the brand Mahindra World City and Industrial Clusters under the brand Origins.

These developments continue to serve as plug-and-play industrial ecosystems, supported by integrated infrastructure that enables efficient setup and operations for domestic and global enterprises.

The strategic focus remains on maximising value creation from existing locations while enhancing infrastructure readiness and occupancy across key developments, thereby strengthening the long-term annuity and development pipeline in the segment. Focus on monetizing existing land parcels/land sale/lease with systematic pricing assessment along with resolution of legacy issues around land aggregation/approvals/land litigations to create further pipeline. Current strategic priority is to deepen presence in target markets, aligned with our existing portfolio and evaluate potential high-value opportunities available across states.

BUSINESS PERFORMANCE Residential

During FY 2025-26, Mahindra Lifespaces continued to demonstrate steady performance in its residential business, supported by a calibrated launch approach, disciplined execution, and sustained demand across key micro-markets. The year was characterised by a balanced market environment, with healthy end-user participation and continued preference for branded, well-executed developments in the premium/mid-premium segments.

The Company remained focused on its strategic priorities of expanding presence in core markets such as MMR, Pune, Bengaluru, and Chennai, while deepening its portfolio through asset-light structures including joint developments and redevelopment opportunities. This approach continued to support capital efficiency and long-term scalability of the business model.

RESIDENTIAL BUSINESS PERFORMANCE SNAPSHOT

Key Performance Indicators	FY 2025-26	FY 2024-25
New Launches (msft)	2.26	4.30
Sales Value (? crore)	2,804	3,405
Collections (? crore)	1,831	2,107
Construction Completion (msft)	1.74	2.28
Handover (Units)	1,033	1,484
Cumulative GDV (? crore)	39,000	45,180

During the year, the Company undertook selective launches across ongoing and upcoming phases, with continued emphasis on absorption-led supply addition rather than volume-led expansion. Market response remained steady, supported by strong brand equity, customer trust, and a differentiated product positioning focused on design quality, sustainability, and community-centric living.

Sales performance was underpinned by sustained demand in the premium housing segment, particularly in well-established urban corridors. The Company continued to benefit from its diversified project portfolio and a robust channel partner ecosystem, which supported consistent customer acquisition across projects.

Collections momentum remained healthy, reflecting steady construction progress and disciplined payment cycles. The focus on execution excellence and customer engagement helped maintain confidence across ongoing projects.

Construction activity progressed steadily during the year, supported by continued improvements in project planning, contractor ecosystem management, and adoption of digital monitoring tools. This enabled smoother execution across multiple sites and supported timely delivery commitments.

The Company also strengthened its land pipeline during the year, with continued focus on redevelopment and joint development opportunities in key urban markets. This reinforces long-term visibility of growth and supports the Companys medium-term scale-up aspirations.

INTEGRATED CITIES AND INDUSTRIAL CLUSTERS (IC&IC)

The IC&IC business continued to deliver stable performance during FY 2025-26, supported by sustained leasing traction and healthy enquiry levels across Mahindra World City Chennai, Mahindra World City Jaipur, and Origins industrial clusters.

Demand for integrated industrial ecosystems remained steady, driven by continued interest from manufacturing, logistics, engineering, and technology-led sectors. The structural shift in global supply chains and Indias positioning as a preferred manufacturing destination continued to support long-term interest in the Companys industrial parks.

IC&IC BUSINESS PERFORMANCE SNAPSHOT

Key Performance Indicators	FY 2025-26	FY 2024-25
Lease Revenue / Income (? crore)	495	713
Land Leased (acres)	85.1	138.4
Cumulative Customers (Nos.)	262	258
Countries Represented (Nos.)	22	22

During FY 2025-26, leasing activity remained steady across operating clusters, supported by a mix of expansion from existing tenants and new customer acquisitions. The pipeline of enquiries continued to reflect diversified sector participation, reinforcing the resilience of demand for integrated industrial townships.

The Company continued to focus on enhancing infrastructure readiness across existing and upcoming phases, ensuring high- quality plug-and-play ecosystems for customers. Sustainability remained a core design principle, with continued emphasis on resource efficiency, green infrastructure, and long-term environmental resilience.

IC&IC continues to remain a key strategic growth pillar for Mahindra Lifespaces, with strong long-term potential driven by industrialisation trends and global supply chain diversification.

OPERATIONS - PROJECTS UPDATE Residential

Mahindra Lifespaces continued to strengthen its diversified residential portfolio across key metropolitan markets during

FY 2025-26. The portfolio remains well-balanced across ongoing developments and a strong pipeline of future projects, supported by a disciplined approach to capital deployment, phased launches, and execution-led growth.

The Company continued to focus on high-potential micro-markets in MMR, Bengaluru, Pune, Chennai, and select emerging urban corridors, while deepening its presence in redevelopment and joint development-led opportunities.

As on 31 March, 2026, the Companys residential portfolio continued to reflect a healthy mix of completed, ongoing, and pipeline developments across geographies.

PROJECTS SNAPSHOT AS ON 31st MARCH, 2026 (MILLION SQUARE FEET)

A1	Area sold	7.58	Total footprint for Ongoing projects	13.83
A2	Current inventory	4.41	Pipeline projects (excl. Strategic Projects)	14.66
A3	Future phases	1.84	Completed development	25.16
A	Total ongoing projects	13.83	Total Development footprint	53.65

ESTIMATED SALEABLE AREA INCLUDING SHARE OF PARTNER IN JOINT DEVELOPMENTS

During FY 2025-26, the Company continued to progress its ongoing developments through a structured execution framework, with emphasis on timely delivery, quality adherence, and customer-centric design outcomes. The completion pipeline remained steady, supported by strong construction momentum across key projects.

The pipeline portfolio continued to expand through selective acquisitions and redevelopment additions, reinforcing long-term visibility of growth. The Company maintained its focus on asset-light expansion, particularly through joint development structures in key urban locations.

PROJECT-WISE STATUS AS ON 31st MARCH, 2026 (AREA IN MILLION SQUARE FEET)

Project	Area Sold (A)	Current Inventory (B)	Future Phases of Ongoing Projects (C)	Total Development (A+B+C)
Ongoing Projects
Blossom	0.78	0.57	-	1.35
Rainforest	-	1.89	-	1.89
Vista	1.25	0.42	-	1.67
Marina64	0.22	0.20	-	0.42
Meridian	-	0.01	-	0.01
Happinest Palghar 2	0.25	0.10	-	0.35
Happinest Kalyan 1	0.13	0.02	-	0.15
Happinest Kalyan 2	0.53	0.50	0.12	1.15
Nestalgia	0.12	0.01	-	0.13
IvyLush	1.10	0.43	-	1.53
Citadel	1.13	0.17	1.30	2.60
Happinest Tathawade	0.70	0.03	-	0.73
Eden	0.40	-	-	0.40
Zen	0.48	0.01	-	0.49
Mahindra NewHaven	0.23	0.04	-	0.27
Lakewoods	0.20	-	0.22	0.42
Green Estates	-	-	0.13	0.14
Lakefront Estates	0.05	-	-	0.05
Aqualily 2D	-	-	0.07	0.07
Total	7.58	4.41	1.84	13.83

UPCOMING PROJECTS

During FY 2025-26, the Company continued to strengthen its development pipeline through strategic additions in key urban markets. The portfolio expansion remains concentrated in high-demand micro-markets, particularly through redevelopment opportunities in Mumbai and select Bengaluru and NCR corridors.

	Lokhandwala 2,	Mulund,	Navrat 2,	Chembur,	Mahalunge,	Navy 2,	Matunga,	Thane,
	Mumbai	Mumbai	Bengaluru	Mumbai	Pune	Mumbai	Mumbai	Mumbai
Acres	2.22	3.08	8.79	4.4	13.46	1.65	1.54	33
Type	Cluster redevelopment	Society redevelopment	Outright acquisition (shares)	Society redevelopment	Outright	Society redevelopment	Cluster Redevelopment	Own Land
Definitive documents	Apr25	Jun25	Jun25	Sep25	Oct25	Oct25	Nov25	DP plan approved in FY26
GDV ( Cr)	1150	1250	1100	1700	3500	800	1010	7500

INTEGRATED CITIES AND INDUSTRIAL CLUSTERS (IC&IC)

The IC&IC business continued to demonstrate steady operational performance during FY 2025-26, supported by sustained leasing momentum and continued interest from domestic and global enterprises.

The portfolio across Mahindra World City Chennai, Mahindra World City Jaipur, and Origins clusters remained well-positioned to capture long-term demand from manufacturing, engineering, logistics, and knowledge-based industries.

The Company continued to focus on expanding occupancies across existing infrastructure while advancing development readiness in upcoming phases.

CUSTOMER ACQUISITION

MLDLs activities in Customer Acquisition during FY 2025-26 continued to focus on premiumising product with differentiated features which enhances value, building the brand idea, and driving scalable sales outcomes across key markets. The product design philosophy remained anchored in evolving customer preferences, urban lifestyle shifts, and emerging demand for premium and sustainable living solutions.

Sustainability continued to remain central to the development approach. The Company further strengthened its leadership in green housing, building on its pioneering Net Zero philosophy in India. It remains committed to achieving Net Zero Developments by 2030, while sustaining a 100% green residential portfolio. The pipeline of Net Zero-enabled projects expanded further during the year, reinforcing sustainability as a core product differentiator rather than a standalone initiative.

During FY 2025-26, Mahindra Lifespaces continued to build on its brand narrative of Home of Positive Energy, deepening its focus on community-centric living. The brand engagement ecosystem was strengthened through integrated digital campaigns, immersive customer experiences, and on-ground activations across key project locations. These initiatives improved brand recall and strengthened lead quality across priority markets.

Digital and channel-led sales continued to remain the backbone of acquisition strategy. The Company further enhanced its channel partner ecosystem through expanded onboarding, structured capability building, and technology-enabled sales enablement tools. Upgrades to the digital partner platform improved lead tracking, transparency, ease of doing business and conversion efficiency.

Contribution from alternative acquisition channels—including corporate partnerships, digital direct-to-customer platforms, and referral networks—continued to increase, reflecting a more diversified and resilient sales engine.

Box-item

In FY 2025-26, the Home of Positive Energy framework became more structured and instrumental in guiding product design across our residential portfolio. The philosophy helped translate brand intent into tangible and intangible customer value, strengthening relevance across segments. The framework is anchored around three core pillars:

Distinctive project design focuses on well-defined architectural identities, premium facades premiumisation, a strong arrival experience, and contemporary clubhouses with differentiated lifestyle amenities.

Superior layout design emphasises space efficiency and usability, with segment-relevant features such as walk-in wardrobes, smart storage solutions, terrace-style decks, and senior-friendly washrooms.

Sustainability remains integral, with homes planned to enable access to nature, adequate sunlight and ventilation, supported by biodiversity-focused landscape planning. We continue our commitment to IGBC-certified green homes and Net Zero-aligned developments, reinforcing long-term environmental responsibility and customer well-being.

MARKETING AND BRAND BUILDING

In FY 2025-26, Home of Positive Energy remained the central brand philosophy guiding our residential portfolio and continued to shape the narrative across new launches. The idea was consistently reflected across communication, design storytelling, and customer engagement, reinforcing trust, well-being, and long-term relevance for homebuyers.

There has been a transformation in the customer value proposition. Focus shifted to premium/mid-premium customers - allows for better locations in city and suburbs, modern building facades and elevated brand aesthetics. Larger typologies of 2, 3 & 4 BHKs allowed intelligent designs like square decks, walk-in wardrobes, balconies for master bedroom, etc. Net-zero/ IGBC certified projects have also been launched that improves the consumer pull with better economics. Providing differentiated amenities in each project - Urban Forest (Rainforest), Larger clubhouses (Vista, Rainforest), Biophilic clubhouse (IvyLush), among others.

We sustained a strong focus on digital-first marketing, with sharper targeting, data-led optimisation, and content-driven engagement. These efforts improved campaign effectiveness, resulting in stronger organic traffic and enhanced conversion efficiency across key launches during the year.

Superlative customer experience and marquee brand partnerships have been important factors enabling premiumisation. As we deepened our presence in premium micro-markets such as South Mumbai, our marketing approach focused on building relevance with the citys HNI homebuyers. Anchored in our belief in active living, we leveraged sports-led associations and contextual platforms to amplify and hasten brand awareness and relevance. Participation in platforms such as the New Zealand Cricket Golf Day in Mumbai and visibility at the T20 cricket match in Nashik supported this objective. This philosophy also extended into product differentiation, with one of our large developments hosting a cricket ground, going beyond conventional offerings.

The Company continued to strengthen its channel partner ecosystem through structured training and digital enablement. Enhancements to the partner application ecosystem improved ease of doing business, with better lead management, deal visibility, and operational efficiency. While channel partners remained the primary sales driver, direct digital engagement and corporate alliances contributed meaningfully to overall sales momentum, reinforcing a balanced and resilient multi-channel acquisition strategy. Focus is also on M-Partners channel partner app to be scaled further, streamlining partner registration, project access, and brokerage tracking.

CUSTOMER RELATIONS

Customer centricity remained at the core of MLDLs operating philosophy during FY 2025-26, covering the entire lifecycle of the home-buying journey—from discovery and booking to possession and post-handover engagement.

Key initiatives during the year included:

• M-Life Customer App: The M-Life Customer App serves as a convenient self-help digital channel for customers. It is designed to provide convenience, faster access, and reduced dependency on manual support and is aimed at customers between booking and possession.

• Tech-enabled Service Delivery: Expanded deployment of AI- driven service resolution workflows, predictive analytics, and automation tools to enhance responsiveness and reduce turnaround times.

• Quantum Leap: Presales booking portal that is integrated with SFDC with one URL for all projects. It provides real-time communication at each stage of customer journey - from site visit to booking -Communication mode (Whatsapp & Email).

• Customer Communication Framework: Strengthened proactive communication protocols across construction updates, billing cycles, documentation, and statutory processes. The centralised customer care system was further upgraded to enhance responsiveness and escalation management.

• Resident Engagement: Continued focus on community- building initiatives through festivals, wellness programs, sustainability awareness sessions, and on-site engagement events. Property management systems were further integrated to streamline post-handover experience.

• M-Living App: A digital platform for managing residential and community operations post possession. It supports resident engagement, operational oversight, and service delivery and is applicable for projects post possession.

These initiatives collectively contributed to continued improvement in customer satisfaction metrics, reinforcing MLDLs positioning as a customer-first organisation.

PROJECT EXECUTION

Project execution continued to remain a strategic priority for FY 2025-26, guided by principles of quality assurance, process discipline, and First Time Right execution philosophy

Key initiatives during the year included:

• Conscious effort to move to tier 1 / 1.5 contractors to save 4-6 months of time and improve on quality and safety

• Target reduction of construction schedule through multiple initiatives such as dedicated PMO, digitalization, modular formwork system, product and design standardization, parallel sequencing, among others.

• Strategic initiatives like batching plant, forward purchase of steel, vendor diversification, windows and tiles standardization implemented across projects

• Further refinement and strengthening of SOP frameworks across planning, procurement, execution, and quality assurance processes.

• Wider deployment of in-process inspection systems supported by advanced digital tools for real-time quality monitoring and defect prevention.

• Expansion of standardisation frameworks through the Product Finishes Standardisation Catalogue, improving consistency across projects and geographies.

• Continued capability building through structured training programs, including finishing excellence and technical skill enhancement initiatives for site teams.

• Scaling of digital learning platforms, including M-Skill modules and visual work procedures to standardise execution practices across sites.

Safety remained a critical pillar of execution excellence. The Company strengthened its inclusive safety culture through enhanced monitoring systems, proactive risk identification, and technology-enabled reporting tools. The Safety Portal and Mobile App saw wider adoption, improving real-time visibility of safety incidents and corrective actions.

Initiatives such as Safety Observation Tours, structured safety campaigns, and on-ground engagement programs continued to reinforce behavioural safety culture across project sites.

LAND AND CAPITAL

Mahindra Lifespaces continues to pursue its long-term aspiration of scaling residential pre-sales to ^10,000 crore by FY2029-30. The Companys growth strategy remains anchored on disciplined capital allocation, a strong balance sheet, and a diversified development model spanning outright acquisitions, Joint Development (JD), and Society Redevelopment (SR) structures.

The financial position continues to remain robust, supported by access to competitively priced debt and a strong ecosystem of strategic capital partners. This provides flexibility to support sustained expansion of the development pipeline while maintaining prudent leverage discipline.

During FY2025-26, the Company continued to strengthen its development pipeline through strategic acquisitions and redevelopment opportunities across key urban markets, with continued focus on the Mumbai Metropolitan Region (MMR) and Bengaluru. The year saw further consolidation of the Companys redevelopment-led growth strategy, with increasing share of capital-efficient structures in overall pipeline addition.

LAND ACQUISITION IN FY2025-26 AND GDV

Location	Land Area (Acre)	Dev. Potential (msft)	GDV (? Crore)
Lokhandwala 2, Mumbai A	2.22	0.31	1,150
Mulund, Mumbai A	3.08	0.66	1,250
Navrat 2, Bengaluru	8.79	1.04	1,100
Chembur, Mumbai A	4.4	0.71	1,700
Mahalunge, Pune	13.46	3.5	3,500
Navy 2, Mumbai a	1.65	0.37	800
Matunga, Mumbai	1.54	0.33	1,010
Thane	33	-	7,500
Total	68.14	6.92	18,010

a Society Redevelopment project

JOINT DEVELOPMENT PROJECT

The Company continued to focus on Large-scale redevelopment opportunities in Mumbai micro-markets, which remain a key driver of future GDV creation and capital-efficient growth.

GDV PIPELINE AND DEVELOPMENT VISIBILITY

The Companys cumulative GDV pipeline as of FY2025-26 stood at 45,180 Crore, reflecting continued expansion of development visibility across ongoing, pipeline, and newly acquired projects.

Compared to the previous year, the Company has witnessed:

• Higher share of redevelopment-led additions

• Increased concentration in high-value urban micro-markets

• Improved capital efficiency through JD/SR structures

• Stronger conversion visibility of pipeline into execution-ready projects

The GDV pipeline continues to provide multi-year revenue visibility and reinforces the Companys medium-term growth trajectory.

CAPITAL STRATEGY AND FUNDING FRAMEWORK

The Company continues to maintain a strong capital structure supported by diversified funding sources including bank debt, structured partnerships, and joint venture platforms.

Key strengths include:

• Prudent leverage management

• Access to long-term capital at competitive cost

• Strategic partnerships with institutional investors

• Strong capability to scale through asset-light models

The Rights Issue approved earlier continues to strengthen the Companys financial flexibility and supports accelerated execution of the development pipeline.

FY2026-27 OUTLOOK

Looking ahead to FY2026-27, management expects continued momentum in:

• Redevelopment-led growth, particularly in Mumbai

• Expansion of GDV through disciplined and selective acquisitions

• Scaling of capital-efficient JD and SR models

• Strong execution visibility across key residential micro- markets

• Continued focus on balance between growth and capital efficiency

The Company remains well positioned to benefit from sustained demand in premium/mid-premium residential segments, supported by structural urban housing demand and redevelopment tailwinds in key cities.

INFORMATION TECHNOLOGY

Mahindra Lifespaces approach towards technology continues to focus on enabling operational efficiency, driving scalability, and strengthening competitive advantage across its businesses. The Company has deployed a robust IT ecosystem spanning core business operations, project execution, and customer-facing functions.

Its key technology backbone continues to include SAP ERP for integrated management of core and peripheral business processes, seamlessly connected with SFDC as the enterprise-wide platform for sales, customer servicing, and communication management. This is supported by secure IT infrastructure comprising primary and disaster recovery data centres, enterprise communication tools, and specialised project management applications tailored for real estate operations.

During FY 2025-26, the Company continued to strengthen its digital backbone through ongoing enhancements in system stability, integration, and process automation across business functions. Focus remained on improving data consistency, reducing manual interventions, and enabling real-time decision support across project and sales operations.

A key area of continued focus has been the adoption of Building Information Modelling (BIM), which is now increasingly being leveraged beyond design applications to improve cross-functional coordination, execution efficiency, and project planning accuracy across developments.

The Companys digital initiatives across sales, customer engagement, and project management continue to support standardisation and scalability, enabling a more integrated and data-driven operating model. These initiatives have been further detailed in the respective sections of this report.

HUMAN RESOURCES

Mahindra Lifespaces people strategy continues to be central to its long-term growth agenda. The Company recognises that sustained business performance is enabled by a strong talent base, a high- performance culture, and an inclusive, future-ready organisation. Over the years, the organisation has steadily strengthened its workforce across capability, scale, and engagement, while deepening its focus on digital enablement, governance, and leadership development.

The total employee base has grown from 477 in FY22 to 764 in FY26, reflecting sustained organisational expansion and capability build-out across business functions. This growth has been supported by a structured approach to talent acquisition, capability development and employee engagement.

TALENT ACQUISITION AND DIVERSITY

The Company continues to follow a structured, capability-led hiring approach aligned with business priorities and organisational values. Alongside strengthening functional expertise, emphasis remains on building a diverse and inclusive workforce.

Women representation in the workforce has consistently improved from 17% in FY22 to 28% in FY26, reflecting sustained progress in diversity and inclusion. This improvement has been supported by targeted hiring across business and support functions, along with focused efforts to strengthen representation in leadership pipelines.

Attrition levels, after peaking in earlier years, have moderated to 20.64% in FY26, compared to 21.52% in FY25, reflecting improved retention focus and employee experience interventions.

Recruitment during the year continued to support key growth areas across residential and IC&IC businesses, with increasing emphasis on role-based hiring, leadership readiness, and critical skill augmentation.

LEARNING AND DEVELOPMENT (L&D)

Learning and capability building remain foundational to creating a future-ready organisation. The Company continues to invest in structured leadership and functional development programmes, aimed at strengthening both current capability and future leadership pipelines.

Key flagship initiatives such as MALT, Future Shapers, m-LEAP, and m-LEAD continued during the year, complemented by executive education partnerships including SPJIMR and NICMAR. The Company also strengthened coaching and experiential learning journeys for high-potential talent.

During FY26, structured programmes such as m-IGNITE delivered over 24,000+ learning hours, while m-POWER continued to support onboarding of 150+ new joinees. Learning Fridays and monthly capability sessions further reinforced continuous learning across functions.

These initiatives collectively strengthen technical depth, leadership capability, and organisation-wide readiness for future growth.

EMPLOYEE ENGAGEMENT AND CULTURE

Employee engagement continues to be a key pillar of the organisations culture-building efforts, focused on strengthening collaboration, wellbeing, and organisational belonging.

During FY26, flagship engagement platforms such as MSPIRE (annual offsite) and the Mahindra Premier League continued to bring employees together across teams and geographies. The organisation also continued to promote celebration of cultural diversity through festivals and community-building initiatives.

The Company has further enhanced workplace inclusivity through infrastructure upgrades, including expanded office facilities in Bengaluru (RO) and Bhandup (RO) along with gender-neutral washrooms and improved accessibility for persons with disabilities across locations.

Recognition and rewards mechanisms were strengthened, with over 525 awards distributed through structured R&R frameworks, including long-term incentives and cash-based recognition programmes.

TALENT MOBILITY, SCALE-UP AND RETENTION

The Company continues to focus on building strong internal talent pipelines and enabling career mobility across levels. During FY26, structured internal mobility programmes supported leadership continuity, with 2 EX and DH band roles filled through internal rotations.

A total of 24 associates were onboarded in DH band and above, reinforcing leadership pipeline depth. Early-career talent development also remained a priority, with 33 trainees inducted in FY26 and 42 planned for FY27, supporting long-term capability build-out.

The Company continues to strengthen its differentiated reward framework, combining performance-linked incentives, long-term incentives, and recognition mechanisms to drive retention and ownership mindset.

HIGH-PERFORMANCE ORGANISATION AND CULTURE

The organisation continues to evolve towards a high-performance, ownership-driven culture anchored on accountability, long-term orientation, and operational excellence.

During FY26, key organisational development initiatives included:

• Strengthening of organisation design across key functions including projects, finance, procurement, Legal, safety, and communications.

• Revamp of the performance management system.

• Introduction of the new RISE values, reinforcing behavioural alignment.

• Enhanced communication frameworks through town halls, leadership connects, and structured information-sharing platforms.

These initiatives collectively reinforce a culture of transparency, performance orientation, and alignment with strategic priorities.

DIGITAL HR TRANSFORMATION AND GOVERNANCE

The Company continues to leverage digital platforms to improve HR efficiency, transparency, and employee experience. HRMS-enabled processes have stabilised further, supporting integrated workflows across recruitment, onboarding, performance management, and employee servicing.

Strong governance frameworks remain embedded across HR operations through:

• Maker-checker controls and structured approval mechanisms

• Standardised policies including BEGC and WB frameworks.

• Zero-tolerance compliance approach.

• Strengthened process adherence and execution discipline.

The HR function continues to operate on first principles of consistency, fairness, and cost leadership, ensuring scalable and sustainable people processes.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

As a responsible corporate citizen, Mahindra Lifespaces, through its subsidiaries, continues to contribute to the development of local communities across its areas of operation through focused Corporate Social Responsibility (CSR) initiatives. During FY 2025-26, CSR programmes were implemented across five key thrust areas, namely environment, women empowerment & skill development, health & well-being, education, and social & community development.

Key areas of intervention during the year included:

• Environmental Stewardship: Afforestation, water conservation, renewable and energy-efficient infrastructure, and environmental awareness initiatives aimed at strengthening ecological resilience and resource conservation.

• Education and Skill Development: Programmes focused on improving access to quality education, promoting girl child education, supporting differently-abled students, and enhancing employability through vocational and skill development initiatives.

• Women Empowerment and Livelihood Creation: Initiatives designed to strengthen womens economic participation through entrepreneurship development, vocational training, and livelihood support.

• Health and Community Well-being: Support towards strengthening public healthcare infrastructure, emergency response capabilities, and community health outcomes in underserved regions.

• Community Infrastructure and Social Development:

Development of community assets and public infrastructure, including libraries, learning centres, sports facilities, mobility support, and other projects aimed at improving the quality of life in local communities.

During the year, the Company and its subsidiaries incurred a CSR expenditure of ^524 lakhs and positively impacted more than 30,000 beneficiaries across their operational geographies. Employee volunteering also remained an integral part of the CSR approach, enabling active participation in community development initiatives.

Further details on the Companys CSR philosophy, governance framework, initiatives and outcomes are provided in the Social and Relationship Capital of this Integrated Annual Report.

Financials

Abridged Profit and Loss Statement

(? Crore)

Particulars	Standalone FY 2025-26	Standalone FY 2024-25	Consolidated FY 2025-26	Consolidated FY 2024-25
Operating Income	860.3	349.3	1178.3	372.3
Other Income	317.3	283.3	87.7	91.6
Total Income	1177.6	632.6	1266.0	463.9
Project and Operating Expenses	802.7	315.8	1042.8	316.4
Employee and Other Expenses	238.7	209.9	257.1	225.8
Financial Expenses	21.0	27.8	10.9	19.4
Depreciation	23.6	17.6	23.9	17.8
Total Expenditure	1086.0	571.1	1334.7	579.4
PBDIT	136.2	106.9	(33.9)	(78.3)
PBDT	115.2	79.1	(44.8)	(97.7)
PBIT	112.6	89.3	(57.8)	(96.1)
Share in Profit of JVs and Associates	-	-	348.9	186.0
PBT	91.6	61.5	280.2	70.5
Exceptional Item	(3.6)	-	25.8	-
PBT after Exceptional Item	88.0	61.5	306.0	70.5
Tax	15.9	10.1	7.9	9.1
Profit After Tax (PAT)	72.1	51.4	298.1	61.4
Diluted EPS (?)	3.53	3.04*	14.61	3.63*

(*) Earnings per share (EPS) for the previous year have been adjusted for effect of rights issue during the year.

STANDALONE FINANCIAL HIGHLIGHTS

Total income of the standalone entity stood at 1177.6 crore in FY 2025-26 compared to 632.6 crore in FY 2024-25. The movement reflects changes in project completion cycles, revenue recognition from ongoing developments, and execution pace during the year

Total expenses followed a corresponding trajectory driven by project and operating costs, employee-related expenses, and finance costs aligned with business scale-up.

The Companys profitability metrics during FY 2025-26 reflect operational performance across project execution, sales momentum, and cost management efficiencies.

Operating profit (PBDIT) stood at 136.2 crore in FY 2025-26, while profit after tax (PAT) stood at 72.1 crore.

CONSOLIDATED FINANCIAL HIGHLIGHTS

Consolidated total income stood at 1266.0 crore in FY 2025-26, compared to 463.9 crore in FY 2024-25. Operating loss at the consolidated level stood at 33.9 crore in FY 2025-26, compared to a loss of 78.3 crore in FY 2024-25.

After accounting for the share of profits from JVs and associates, the Company reported a profit at the consolidated level. Profit before tax (PBT) stood at 306.0 crore in FY 2025-26 compared to 70.5 crore in FY 2024-25.

Profit after tax (PAT) stood at 298.1 crore in FY 2025-26 compared to 61.4 crore in FY 2024-25.

KEY FINANCIAL RATIOS (STANDALONE)

(? Crore)

Particulars	FY 2025-26	FY 2024-25	% Change as compared previous year	Rationale
Debtors Turnover	5.54	3.58	54.7%	Increase in operating revenue and increase in trade receivables
Inventory Turnover	0.24	0.10	140.0%	Increase in operating revenue
Interest Coverage RatioA	1.97	1.02	93.1%	Increase in EBITDA and decrease in interest expense
Current Ratio	1.20	1.33	(9.8%)
Debt Equity RatioA	0.20	0.92	(78.3%)	Decrease in debt and increase in other Equity on account of rights issue
Operating Profit Margin (%)A	(21.1%)	(50.5%)	58.2%	Increase in operating revenue
Net Profit Margin (%)a	8.4%	14.7%	(42.9%)	Increase in revenue and increase in expenses
Return on Net WorthA	3.1%	3.3%	(6.1)

A Ratios where change is significant (over 25% compared to previous year). Net debt to equity ratio on a fully consolidated basis as on March 2026 is -0.27 (FY 2024-25: 0.39)

The increase or movement in the debt equity ratio, if applicable, will reflect changes in borrowings undertaken to support project development, land acquisition, and execution pipeline.

The Companys ability to generate cash and service its debt obligations continues to remain robust, and liquidity is expected to remain comfortable. Surplus funds continue to be deployed in creditworthy instruments including bank deposits.

INTERNAL CONTROLS

The Company has adequate internal control systems, commensurate with the size and nature of its business. Well-documented policies, guidelines and procedures to monitor business and operational performance are supported by IT systems, all of which are aimed at ensuring business integrity and promoting operational efficiency.

An independent internal audit and assurance firm appointed by the Company conducts periodic audits to ensure adequacy of internal control systems, adherence to management policies and compliance with laws and regulations. The scope of work of this firm includes internal controls on accounting, efficiency and economy of operations. The internal auditors also report on the implementation of their recommendations.

Reports of the internal auditors are regularly reviewed at Audit Committee meetings. The Audit Committee of the Board also reviews the adequacy and effectiveness of the internal control systems and suggests improvements, as required.

THREATS, RISKS AND CONCERNS

Mahindra Lifespaces has appropriate risk management systems in place for identification and assessment of risks, measures to mitigate them, and mechanisms for their proper and timely monitoring and reporting.

The Company has a Risk Management Committee consisting of four members — one Non-executive Director, one Independent Director, the MD & CEO and the Chief Financial Officer — to review the risk management plan and oversee the complete process. The role of the Committee, inter alia, includes formulation, oversight and implementation of the risk management policy and business continuity plan, and ensuring that appropriate methodology, processes and systems are in place to monitor and evaluate risks associated with the business. The Board also regularly reviews risks.

ECONOMIC RISKS

Real estate industry is cyclical in nature. Any downturn in the industry can impact the Companys performance. Inflation in commodity costs can also impact profitability.

The Companys presence in both residential and industrial segments continue to be a key strength in managing cyclical volatility. Further, the Companys focus on premium / mid-premium segments provides relative resilience compared to the luxury segment.

The Company continues to follow strong financial discipline with strict adherence to target financial parameters such as IRR, prudent capital allocation, and strategic funding to support growth. It maintains a strong balance sheet and the ability to raise capital at competitive cost. With respect to the interest rate environment, the Company believes that domestic interest rates, particularly repo rates, have a greater bearing on residential demand and affordability than global interest rate movements. The stability in repo rates has been supportive of the real estate sector and continues to provide a favourable environment for homebuyers and developers.

To mitigate inflation-related risks, the Company follows a multi- pronged approach:

(i) appropriate provision for commodity price escalations in project costs

(ii) value engineering and design efficiency

(iii) long-term and forward contracts

(iv) price revisions aligned with market conditions

In addition, the Company continues to closely monitor the impact of ongoing geopolitical developments and associated market volatility. Geopolitical events can influence energy prices and the cost of key construction materials such as steel, cement, aluminium, glass and tiles, while supply disruptions in certain commodities, particularly aluminium and tiles, may lead to cost pressures. Such uncertainties can also contribute to volatility in financial markets, which may influence homebuyer sentiment given the high-value nature of residential purchases. While the Company has observed some moderation in sentiment amid recent geopolitical developments, underlying demand fundamentals remain intact, and the premium housing segment is expected to remain relatively resilient. The Company continues to manage these risks through prudent cost planning, value engineering and disciplined project execution.

OPERATIONAL RISKS

Key operational risks include:

(i) inability to sell projects as per plan

(ii) inability to complete and deliver projects within timelines leading to cost overruns

(iii) difficulties in appointment and retention of contractors and manpower

(iv) inability to attract and retain talent

(v) fraud and unethical practices

(vi) non-compliance with laws and regulations leading to penalties and litigation

(vii) Increased exposure to security breaches and exploitation of vulnerabilities driven by rapid advancements in AI

The Company addresses these risks through a structured framework that identifies controls and assigns ownership to monitor and mitigate risks. It continues to invest in customer-friendly processes and enabling IT infrastructure to strengthen operational control and transparency.

Corporate governance policies ensure transparency in operations, timely disclosures and regulatory compliance. The Company also maintains a Code of Conduct for all associates. Employee-friendly policies and engagement practices continue to support talent retention and organisational stability.

POLICY AND REGULATORY RISKS

The real estate industry remains sensitive to changes in government policies and regulations. Procedural delays in approvals related to land acquisition and development continue to be a structural challenge. Unfavourable regulatory changes may impact business performance.

The Company mitigates these risks through a disciplined approach to land acquisition supported by thorough due diligence and transparent development processes. Its continued focus on sustainable and environment-friendly practices also supports compliance with evolving environmental regulations.

OUTLOOK

Indias real estate sector continues to demonstrate structural resilience, supported by sustained end-user demand, favourable demographics and an increasing preference for organised and trusted developers. Demand in the residential segment remains healthy across key urban centres, driven by premiumisation trends and improving affordability dynamics. The industrial and integrated developments segment continues to benefit from manufacturing- led growth, supply chain diversification and supportive policy initiatives.

Against this backdrop, Mahindra Lifespaces delivered a steady operational performance in FY 2025-26, with continued momentum in its residential portfolio and stable progress in the industrial business. The Company remains focused on scaling its development pipeline while maintaining execution discipline.

The residential business recorded presales of 3,405 crore during FY 2025-26, reflecting, supported by key project launches and traction across core markets. Collections stood at 2,107 crore, indicating healthy customer demand and cash flow visibility.

Business development continued to be a key focus area, with the Company adding projects with an estimated GDV of over 18,060

crore during FY 2025-26, further strengthening its medium-term pipeline. The overall development portfolio provides strong visibility towards the Companys long-term growth aspirations.

Going forward, Mahindra Lifespaces remains focused on:

• Sustaining presales momentum through a strong and calibrated launch pipeline

• Accelerating execution across its existing portfolio

• Expanding its industrial footprint in high-demand corridors

• Strengthening its portfolio through selective and value- accretive business development

With a strengthened pipeline, improving sectoral tailwinds and a continued focus on execution excellence, the Company is well- positioned to sustain growth momentum over the medium term and progress towards its stated aspiration of achieving 10,000 crore in annual sales over the medium term(FY30).

CAUTIONARY STATEMENT

Certain statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be forward-looking statements within the meaning of applicable securities laws and regulations. Actual results could differ from those expressed or implied. Important factors that could make a difference to the Companys operations include labour and material availability and prices, cyclical demand and pricing in the Companys principal markets, changes in government regulations, tax regimes, economic development within India, and other incidental factors.

DISCLAIMER

The Company shall be registering its forthcoming projects at an appropriate time in the applicable jurisdictions/States under the Real Estate (Regulation and Development) Act, 2016 (RERA) and the Rules thereunder. Till such time as the forthcoming projects are registered under RERA, none of the images, material, projections, details, descriptions and other information mentioned in the Annual Report for the year 2025-26 shall be deemed to be or constitute advertisements, solicitations, marketing, offer for sale, invitation to offer, or invitation to acquire within the purview of RERA.

The Company uses carpet areas as per RERA in its customer communication. However, the data in saleable area terms has been presented in the Annual Report for the year 2025-26 to enable continuity of information to investors and shall not be construed to be of any relevance to home buyers/customers.