Maitri Enterprises Ltd Management Discussions

In terms of the provisions of Regulation 34(2) (e) of the Listing Regulations, the Managements discussion and analysis are as follows.

Global Economy:

The global economic landscape in FY25 was shaped by a balance of growth and uncertainty. While the International Monetary Fund (IMF) reported overall GDP growth at 2.6%, this headline number only partially reflects the underlying complexities that businesses faced throughout the year. Geopolitical tensions, persistent trade fragmentation, and elevated inflation continued to weigh on sentiment and decision-making.

Looking forward, the consensus among major institutions such as the IMF and World Bank points to a gradual improvement. Global GDP is projected to rise to 2.9% in FY26, supported by robust domestic demand in emerging economies and early signs of recovery in global trade, which is expected to grow by 3.1%. While geopolitical and trade-related risks remain a part of the landscape, there is growing confidence that the most disruptive phase of economic fragmentation may be behind us.

Indian Economy:

Indias economic performance in FY25 reinforced its position as the worlds fastest-growing large economy, with real GDP growth of 6.5%. This performance was achieved despite a challenging global environment marked by trade disruptions and geopolitical uncertainty. The economys resilience was particularly evident in the final quarter, where GDP growth accelerated to 7.4%.

The Union Budget 2024-25 allocated _11.1 lakh crore for capital expenditure, amounting to 3.4% of GDP. This commitment is designed to generate a multiplier effect across the economy, with targeted investments in transport, logistics, energy, and urban infrastructure. States have also been incentivised to increase their own infrastructure outlays through long-term, interest-free loans.

Looking ahead, the outlook for FY26 remains optimistic. The RBI projects GDP growth at 6.5%, while the IMF and World Bank forecast growth in the range of 6.2–6.3%. The growth narrative is expected to be supported by a resilient domestic demand, a sustained push on infrastructure, and improving financial conditions.

Industry Real Estate Market:

Indias real estate sector stands as a cornerstone of the nations economic and social development, underpinned by the countrys sustained economic growth and rapid urbanisation. With direct and indirect linkages to approximately 250 ancillary industries, real estate is the second-largest employment generator after agriculture, accounting for nearly 18% of total employment in India. As of 2025, the sectors market size is estimated at USD 482 billion, contributing 7.3% to Indias total economic output.

Looking ahead, the sector is projected to reach USD 1.5 trillion by 2034, representing 10.5% of the countrys economic output. This growth will be driven by robust residential demand, expanding requirements for modern office and retail spaces, and the rising need for warehousing and data centres, fuelled by e-commerce and digitalisation.

The Governments sustained push on infrastructure is evident in fiscal priorities: the central capital expenditure on infrastructure has more than tripled over the past decade, rising from about 0.6% of GDP in FY15 to nearly 2.0% of GDP in FY2025. In the latest Union Budget ofFY25, allocation for infrastructure development was increased by a further 11% YoY, reflecting a strong commitment to build roads, railways, urban transit and more. In fact, infrastructures share of total government capex has swelled from 33% in FY2015 to about 61% in FY25. This unprecedented public investment in infrastructure is laying the groundwork for the next phase of real estate growth.

Outlook for FY25 and Beyond:

The outlook for Indias residential real estate market is resoundingly positive. The optimism stems from multiple factors including, historically low inventory, buoyant consumer sentiment, and an improving financial environment for homebuyers. After a phase of rising interest rates, the cycle is turning benign. The Reserve Bank of India effected its first policy rate cut in early 2025 (25 bps in Q1) as inflation eased to multi-year lows (~3.6%). Lower inflation and interest rates, alongside measures to infuse liquidity into the banking system, are set to reduce mortgage costs and improve credit availability.

Segment wise Performance:

The Company has two operating and reporting segments viz: A. Pharmaceutical Goods B. Infrastructure and Real Estate

Segment wise performance is provided in the Disclosure of material accounting policy information & Notes Forming Part of the Standalone Financial Statement for the Year Ended 31^st March, 2025.

SWOT Analysis (Strength, Weakness, Opportunities and Threats):

Opportunities:

Rental Housing & Co-living Models

Affordable Housing

Real Estate Investment Trusts (REITs)

Technology-Enabled Real Estate Services

Commercial & Office Real Estate in Select Metros

Data Centers, Warehousing, and Industrial Parks

Green & ESG-Compliant Buildings

Vacation & Retirement Homes in Scenic Locations

Challenges:

Regulatory Environment

Land Acquisition

Financing

Construction Delays

High Inventory Levels

Lack of Professionalism

Lack of Infrastructure

Signs of Over Supply & Bubble Risks in Cities

Luxury Segment Pressure

Macroeconomic & Infiationary Constraints

Strength:

Brand Reputation

Execution

Strong cash flows

Significant leveraging opportunity

Outsourcing

Transparency

Threats:

Political uncertainty Execution

Interest rate

Economy and housing a_ordability

Change of demography

Loss of middle class society

Troubled Technology

Natural Disaster

Energy and water crisis

Infrastructure

Immigration

Risks Mitigation Framework:

Management addresses these risks through a structured and dynamic risk management system. This framework assigns clear ownership for the monitoring and mitigation of identified risks, ensuring accountability at every level. The Company has made significant investments in transparent, customer-centric processes and advanced IT infrastructure, which collectively support effective risk mitigation and operational resilience.

Corporate governance policies are rigorously enforced to uphold transparency in business conduct, facilitate timely disclosures, and ensure strict compliance with all applicable regulations.

Through these measures, Management remains committed to safeguarding stakeholder interests and sustaining long-term value creation, while maintaining a proactive stance towards risk management in an evolving business environment.

The principal risks identified as material to the Companys business are as follows:

Infiation

Shifts in Consumer Preferences

Project delays

Brand Reputation

Talent Management

Customer Satisfaction

Frauds and Unethical Practices

Regulatory Changes

Internal Control Systems and Adequacy of Internal Financial Controls:

The Company maintains a comprehensive internal control framework that is rigorously aligned with the scale and complexity of its business operations. These controls are underpinned by well-defined policies and procedures, which are systematically documented to facilitate effective oversight of business performance and operational integrity.

In addition, the internal audit function operates independently and reports directly to the Audit Committee of the Board. Internal auditors perform regular assessments of key control areas, identifying opportunities for improvement and recommending corrective actions where necessary. Their findings and recommendations are presented to the Audit Committee, fostering a culture of transparency and accountability.

CHANGES IN SIGNIFICANT RATIO:

There is a slight significant change in the key financial ratios for the year 2024-25 which are as below:

KEY RATIOS:

Ratios	2024-25	2023-24	% Change	Reason of Change
Current Ratio	1.08	1.83	-40.66%	The ratio decreased mainly due to repayment of non- current liabilities
Debt-Equity Ratio	1.11	1.86	-40.41%	The ratio improved due to reduction in total debt during the current year
Debt service coverage ratio	24.76	7.92	212.74%	The ratio improved due to increase in earnings in current year as compared to last year
Return on equity ratio	0.05	0.01	261.77%	The ratio improved due to increase in earnings in current year as compared to last year
Inventory turnover ratio	5.71	3.25	75.59%	The ratio improved due to increase in Turnover as compared to last year
Trade receivables turnover ratio	7.57	5.16	46.91%	The ratio improved due to increase in Turnover and better receivable management
Trade payables turnover ratio	3.76	2.54	48.04%	The ratio improved due to better payable management
Net capital turnover ratio	9.93	4.50	120.58%	The ratio improved due to increase in Turnover as compared to last year
Net profit ratio	1.05	0.44	140.38%	The ratio increased due to increase in net profit and increase in turnover as compared to last year
Return on capital employed	9.69	4.33	123.93%	The ratio improved due to increase in earnings
Return on investment	0.54	0.00	0.54%	NA

Financial Performance with respect to Operational Performance:

The financial performance of your Company for the year 2024-25 will be described in the Directors Report.

Material Developments in Human Resources and Industrial Relations Front:

Employees are the key to achieve the Companys objectives and strategies. The Company provides to the employees a fair equitable work environment and support from their peers with a view to develop their capabilities leaving them with the freedom to act and to take responsibilities for the tasks assigned. The Company strongly believes that its team of capable and committed manpower, which is its core strength, is the key factor behind its achievements, success and future growth.

We are continuously working to create and nurture an organization that is highly motivated, result oriented and adaptable to the changing business environment. The industrial relations remained cordial during the year.

Cautionary and Forward-Looking Statement:

This report contains certain forward-looking statements, which are subject to inherent risks and uncertainties. Expressions such as ‘will, ‘shall, ‘anticipate, ‘believe, ‘estimate, ‘intend, ‘expect, and similar terminology, when used in relation to the Company or its business, are intended to denote such forward-looking statements. These statements are based on current expectations, assumptions, and projections regarding future events and business performance. Actual results, performance, or achievements may differ materially from those expressed or implied in these statements due to a variety of factors, including but not limited to changes in economic conditions, market dynamics, regulatory developments, and other unforeseen events.

The Company assumes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future developments, or otherwise. Accordingly, readers are advised not to place undue reliance on these forward-looking statements, which speak only as of the date of this report.

Registered office:	By order of Board of Directors
"Gayatri House", Ashok Vihar,	MAITRI ENTERPRISES LIMITED
Near Maitri Avenue Society,
Opposite Government Engineering College,
Motera, Sabarmati,
Ahmedabad-380005, Gujarat.	Sd/-	Sd/-
	RAMESHLAL B. AMBWANI	JAIKISHAN R. AMBWANI
Place: Ahmedabad	CHAIRMAN AND DIRECTOR	MANAGING DIRECTOR
Date: September 05, 2025	DIN: 02427779	DIN: 03592680