Majestic Auto Ltd Management Discussions

1. Global Economy

The global economy witnessed a blend of opportunities and challenges. It persisted with challenges and uncertainties arising on account of trade tariffs from President Donald Trump, rising geo-political tensions between USA-Europe over Greenland, USA-Venezuela, USA-Iran-Israel, India-Pakistan, Israel-Lebanon, Russia-Ukraine leading to supply-chain disruptions, including through the Strait of Hormuz. There was massive disruption in Oil, LPG, Aluminium, and Urea and its resulted in rising inflation, currency weakening, and governments around the world expecting shortages even in food supply.

Additionally, were witnessing immense capex in AI related infrastructure and anticipated loss of business and jobs among knowledge workers around the world. There seem to be opportunities across the stack in all layers of the infrastructure build, including power generation, transmission, storage, and equipment, along with chips, memory, and finally applications including agents. The anticipated challenges have hit Software and IT Companies valuations hard.

2. Industry Structure & Developments

Real Estate has generally done well across the board with steady interest rates, rising prices and increased deal activity. Office space demand saw robust growth.

The Residential Real Estate sector witnessed a strong growth in the past couple of years and is stabilizing for now. The outlook is driven by a confluence of multiple factors including increasing urbanization, shifting demographics, aspirational lifestyle and supportive economic growth in the country. A number of factors are adding further impetus to the growth of the industry. The growth can be attributed to a growing residential demand, expected growth in sustainable workplaces, rising consumption and needs of a growing population with higher income levels.

3. Indian Real Estate: Opportunities and Challenges /Threats/ Strategies

Challenges/Threats

Supply in Noida Office Space

The sheer number of upcoming properties on the Noida-Greater-Noida Expressway will soon lead to over-supply again.

Increased deal Activity /Positive Approach There has been robust growth in leasing/occupancy, a significant uptick in property values, and even more pronounced deal flow. So, weve been able to strike deals to liquidate some of our assets at prices favourable compared to the rental yield. This has eliminated the debt in our company, and we have room for further reinvestment.

4. Segment-wise/ Product-wise Performance

You are already aware that, your Company has divested out of our significant presence in Noida, UP.

Commercial Office Space:

We were able to exit the Knowledge Boulevard asset at a favourable value. We thank our buyers for their speedy execution and our bankers for their ever so reliable support. Industrial Assets: Our large industrial land in Greater Noida was finally sold at a favourable value. We thank our reputed buyers for staying consistent and true to their word from the beginning of our agreement for this sale, even through long periods of waiting for the right permissions from the authorities. This sale was concluded in this year.

Future Real Estate plans: As we search for more lucrative opportunities to deploy our capital, in recent quarters we have been finding high valuations and low yields. Considering the long timeframe required for most real estate projects, were unable to find opportunities with good margin of safety. Especially considering our experience in peculiar bye-laws and requirements, we feel it is better to wait patiently for more attractive prices. It is after-all attractive to be debt free for now.

Financial Investment and Treasury Operations: As we liquidated our real estate assets, we wish to park our funds in liquid assets that we aim to grow at a reasonable pace. Unfortunately, from time to time we suffer volatility due to any number of reasons, including the latest shock to markets from the US/Israel attack on Iran. We did have a reasonably good 11 months until the negative returns of March alone. However, we feel this volatility is temporary and over any reasonably longer term we should see consistent and positive returns.

Currency Risk: We feel the largest risk to our treasury is that of INR depreciation. While we have made small investments in funds investing in stocks globally, that may not be enough of a hedge. The rally in Gold (and Silver) in the last 2 years is pausing and doesnt promise to be a good hedge against a depreciating Rupee. Of course, credit to Ind-As accounting standard that both realised and unrealised gain and loss are transparently visible in our P&L statement now, whereas the long-term investment in Hero MotoCorp used to be displayed only in the Total Comprehensive Income line, and therefore did not get the attention it deserved. Its also important to emphasize, at the risk of repetition, that unlike in GAAP, the previous accounting standard, only realised profit and loss used to be visible in P&L, but Ind-As brings information of even unrealised gain and loss to the top line and gives it the appropriate attention it deserves from all stakeholders.

Given the volatility seen in the last many months, were glad to have held significant debt mutual funds diversified across reputed AMCs and protected our portfolio through treasury operations.

5. Outlook and Strategy

The key elements of the strategy of the Company are the following:

The Company has sold several Real Estate assets and is completely debt-free now.

Company to consider purchase of more real estate assets for investment and growth, as we find favourable opportunities.

Upon continuous feedback from shareholders, company gave a substantial dividend last year. This will be considered again as cashflows allow, and the company is striving toward improving this position.

6. Outlook on Risks and Concerns

The Company is exposed to a number of risks such as economic, regulatory, taxation and environmental risks as well as sectoral investment outlook. Some risks that may arise in the normal course of business and could impact its ability to address future developments comprise credit risk, liquidity risk, counterparty risk, regulatory risk, commodity inflation risk and market risk. The Companys strategy of focusing on key products and geographical segments is exposed to economic and market conditions. The Company has implemented robust risk management policies that set-out the tolerance for risk and your Companys general risk management.

7. Internal Control Systems and Adequacy

The Companys internal controls are commensurate with nature, size and complexities of operations. These internal control systems ensure compliance with all applicable laws and regulations and facilitate optimum utilization of available resources as also protect the interests of all stakeholders. The Company has clearly defined policies, standard operating procedures (SOPs), financial and operational delegation of authority (DOA) and organizational structure for its business functions to ensure a smooth conduct of its business.

8. Discussion on Financial Performance with respect to Operational Performance

The details of the financial performance of the Company are reflected in the Balance Sheet, Statement of Profit & Loss and other Financial Statements, appearing separately. Highlights are provided below:

(Rs. in Lakhs)

Particulars	March 31, 2026	March 31, 2025
Total Income	6,128.18	3629.32
Profit Before Tax	14,386.03	-9.14

The financial performance of the Company has been further explained in the Boards Report of the Company for the Financial Year 2025-26 appearing separately. The financial statements have been prepared in accordance with the requirement of Companies Act 2013, and applicable accounting standards as notified by Ministry of Corporate Affairs (MCA).

S. No. Particulars	FY 2025-26	FY 2024-25
1 Debtors Turnover	30.98 times	22.86 times
2 Inventory Turnover	NA	NA
3 Interest Coverage Ratio	24.64 times	0.11 times
4 Current Ratio	34.27 times	3.08 times
5 Debt Equity Ratio	0.02 times	0.02 times
6 Operating Profit Margin in percentage	-71.69%	-10.09%
7 Net profit margin in Percentage	562.83%	-13.76%
8 Details of any change in Return on Net worth as compared to the immediately previous	18.28%	-0.61%
Financial Year along with a detailed explanation thereof

9. Material developments in Human Resources / Industrial Relations front, including number of people employed.

The Companys core focus areas are building organizational capability and capacity, leveraging and nurturing key talent, encouraging meritocracy and enhancing people utilization in alignment with its business strategy. The Company is undertaking the following steps:

Strengthening and diversifying the advisors and consultants: Were bringing in specialists from real estate and other industries who will enhance all domains, while keeping costs low, especially fixed costs. Key advisors have been brought in across functions including Finance, Business Development, Project Management and execution, Marketing, IT and Hospitality.

Various training and coaching programmes are being implemented to refresh and enrich its existing talent pool. The Company leverages diversity of knowledge, qualification, skill, professional experience, culture, geography and sectoral understanding to enhance its competitiveness. The Company believes in creating an inclusive environment, where diverse perspectives can enrich strategic perspectives. To enhance inclusiveness at work, our gender sensitivity workshops sensitise the environment in strengthening our conduct towards women colleagues. The Companys holistic wellness programme sensitised employees around work-life balance and importance of a healthy lifestyle, emotional, physical well-being and prevention of diseases. Regular medical checks, structured monthly health programmes, health bulletins, health talks and awareness campaigns were periodically conducted. The Company also rolled out a structured program to vaccinate all its employees and their families along with contractors/ partners staff & their families.

10. Details of significant changes in key financial ratios along with detailed explanations thereof, including:/

11. Details of any change in Return on Net Worth as compared to the immediately previous financial year along with a detailed explanation thereof

As compared to previous financial year, the Return on Net Worth was favorable due to the reason that the revenue for the year 2025-26 included Rs. 3302.21 Lacs, on account of sale of property at Greater Noida, U.P and Rs.12280.00 lakh on account of sale of Investment in Subsidiary.

12. Cautionary Statement

Certain statements in the Management Discussion and Analysis describing the Companys views on the industry, expectations/ predictions and objectives etc. may be forward looking within the meaning of applicable laws and regulations. Actual results may differ from those expressed or implied in these statements.

The Companys operations may, inter-alia, be affected by the supply and demand situations, input prices and availability, changes in Government regulations, tax laws, government or court decisions and other factors such as industry relations and economic developments, possible risk of lockdown and/or restrictions in certain geographies. Investors should bear this in mind when considering the above statements.

On behalf of the Board of Directors
Majestic Auto Limited

Mahesh Munjal
Chairman & Managing Director
DIN: 00002990

Date: May 23, 2026
Place: Delhi