Max Heights Infrastructure Ltd Management Discussions

Max Heights Infrastucture Limited (referred to as Max or the Company) is a Real Estate Company that operates under the management control of experienced promoters with a wealth of knowledge in the Real Estate Sector. However, the Company faces numerous internal and external challenges that contribute to a complex and demanding operating environment.

Max Heights Infrastucture Limited has been established with the aim of providing high-quality real estate solutions to its customers. The Company specializes in developing residential and commercial that cater to the evolving needs of its clients. With a commitment to excellence and a customer-centric approach, Max Heights Infrastucture Limited has gained a reputation for delivering projects that embody innovation, sustainability, and contemporary design.

In the dynamic landscape of the real estate industry, Max Heights Infrastucture Limited confronts various internal challenges that impact its operations. These challenges include managing the internal processes efficiently, maintaining a talented workforce, ensuring effective communication within the organization, and adapting to the changing market trends. The Company recognizes the importance of addressing these internal challenges to streamline its operations and maximize its performance.

Furthermore, Max Heights Infrastucture Limited also faces external factors that significantly influence its business environment. These external challenges consist of regulatory changes, market fluctuations, economic conditions, and competitive pressures. The Company must navigate through these complexities by staying updated with regulatory requirements, implementing robust risk management strategies, and continuously innovating to stay ahead of the competition.

Moreover, economic conditions play a crucial role in shaping the operating environment for Max Heights Infrastucture Limited. Economic factors, such as GDP growth, employment rates, and disposable income, can influence the purchasing power and demand for real estate properties.

Additionally, competitive pressures in the real estate industry pose a constant challenge for Max Heights Infrastucture Limited. The sector is characterized by intense competition, with numerous players vying for market share. The Company must differentiate itself by offering unique value propositions, maintaining a strong brand image, and delivering superior customer experiences. Continuous market research and analysis are essential to identify emerging trends, consumer preferences, and competitor strategies, allowing Max Heights Infrastucture Limited to adapt and stay ahead in the competitive landscape.

To address these challenges and succeed in the complex operating environment, Max Heights Infrastucture Limited employs a multi-faceted approach. The Company emphasizes the importance of efficient internal processes and has implemented robust systems and procedures to streamline its operations. This includes leveraging technology solutions for project management, customer relationship management, and financial controls.

The Financial Statements have been prepared in compliance with the requirements of the Companies Act, 2013, Regulation 33 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI Listing Regulations) and the Indian Accounting Standards (Ind-AS) in India. Our Management accepts responsibility for the integrity and objectivity of these Financial Statements, as well as for the various estimates and judgments used therein. The estimates and judgments relating to the Financial Statements have been made on a prudent and reasonable basis, so that these Financial Statements reflect in a true and fair manner the form and substance of transactions and reasonably present our state of affairs, profits and cash flows for the Financial Year 2025-26.

I. ECONOMIC OVERVIEW

Global Economy

After two years of declining values and a largely stagnant 2025, the global real estate market is entering a more promising phase. 2026 expects to mark an inflection point, with a recovery in both valuations and transaction activity. The macro backdrop remains constructive—and divergent, requiring a diversified and granular investing approach from investors. Beyond U.S. growth opportunities supported by demographics and productivity gains. At the same time, new construction has slowed and, in many markets, it now costs more to build a property than to buy an existing one. Because this makes new projects harder to justify financially, it is likely to limit future supply and potentially lengthen the next phase of the real estate cycle. “Lower cost of capital, lower prices and constrained supply are creating favorable conditions for recovery,” says Tony Charles, Head of Research and Strategy for Global Real Assets at Morgan Stanley Investment Management. “That said, performance will vary across regions, sectors and asset types. Motivated sellers, engaged buyers and improved debt availability are setting the stage for a rebound in both transactions and valuations.”

The global real estate sector in FY 2025-26 is experiencing a structural recovery, driven by stabilizing interest rates, easing inflation, and growing transaction volumes. Market participants are prioritizing alpha-driven asset selection, energy efficiency, and operational excellence as they navigate an increasingly segmented property landscape.

Indian Economy

In FY 2025-26, the Indian economy expanded by an estimated 7.4%, fueling robust domestic demand. For real estate companies, this macroeconomic environment is characterized by stable capital availability, strong housing fundamentals, and premium housing absorption.

1. Macroeconomic Overview & GDP Growth

i Robust GDP Expansion: Indias real GDP growth in FY 2025-26 is estimated at 7.4%, outperforming previous years.

• i Domestic Drivers: Growth is largely propelled by private consumption, healthier household balance sheets, and continued governmental focus on capital investments.

2. Industry Dynamics & Residential Demand

• i Sustained Upcycle: The residential real estate market has maintained a powerful upcycle, with Tier I cities recording significant sales volumes.

• i Price Appreciation: Average home prices are projected to climb by 3% to 5% in FY26, sustaining developer pricing power and profitability following strong double-digit growth in previous years.

• i Affordable Housing Evolution: While entry-level and affordable housing volumes have stabilized, unsold inventory is reducing, indicating gradual absorption.

3. Financial & Capital Market Environment

• i Favourable Interest Rates: The Reserve Bank of Indias (RBI) cumulative

125 bps reduction in the repo rate has significantly supported housing affordability and loan eligibility.

• i Institutional & Foreign Investment: Indian real estate continues to attract billions in institutional investments, supported by increased domestic capital contributions.

II. INDUSTRY STRUCTURE AND DEVELOPMENTS

In FY 2025-26, the real estate sector experienced resilient growth, driven by strong residential absorption, rebounding commercial leasing, and supportive macroeconomic policies. While premium and luxury segments surged, companies successfully navigated affordability challenges through sustained urbanization, favourable credit conditions, and strategic technological advancements.

1. Industry Structure and Developments

i Macroeconomic Tailwinds: The sector benefited from strong domestic fundamentals. Robust GDP growth and strategic capital expenditure (capex) outlays by the government sustained infrastructure development.

• i Market Resilience: Despite cyclical interest rate adjustments, residential demand remained strong. Commercial real estate investments increased notably, driven by a resurgence in office leasing and a structural shift towards flexible workspaces and green buildings.

2. Company Performance and Operational Review

• i Sales Velocity and Inventory: Detail project-wise sales bookings, total area delivered, and the monetization of land banks. Emphasize how unsold inventory turnover rates improved across affordable and mid-segment projects.

• i Portfolio Diversification: Discuss strategic shifts into high-growth alternative verticals such as luxury housing, mixed-use developments, and specialized spaces (e.g., life sciences, data centers, and third-party logistics warehousing).

3. Financial Review and Capital Management

• i Revenue and Profitability: Highlight key metrics such as profit after tax

(PAT), net worth, and EBITDA margins. Mention the impact of construction and raw material costs on project margins.

• i Funding and Liquidity: Analyze liquidity position, debt-to-equity ratio, and average cost of capital. Detail how the company leveraged private equity (PE), mergers and acquisitions (M&A), and digital lending platforms to manage capital efficiently.

INDUSTRYSTRUCTURE

Structure of the Real Estate Industry:

The real estate industry in India comprises various stakeholders involved in the development, sale, purchase, and management of properties. These stakeholders include developers, builders, construction companies, real estate agents, brokers, financial institutions, investors, and buyers.

Developers and Builders:

Developers are the key players in the real estate industry. They acquire land, obtain necessary permissions and approvals, and undertake construction projects to develop residential, commercial, and mixed-use properties. Builders are responsible for executing the construction work as per the design and specifications provided by the developers.

Developers and builders can be classified into different categories based on their scale of operations. Large-scale developers undertake mega projects and are often publicly listed companies. They have the resources, expertise, and track record to execute projects of significant magnitude. On the other hand, small and medium-sized developers focus on niche segments or specific geographic areas. They may specialize in affordable housing, luxury projects, or commercial properties.

Real Estate Agents and Brokers: Real estate agents and brokers act as intermediaries between buyers and sellers. They help buyers in finding suitable properties and negotiate transactions on their behalf. These professionals earn a commission based on the value of the property transaction.

Real estate agents and brokers play a crucial role in connecting buyers and sellers in the real estate market. They provide market insights, facilitate property visits, assist in price negotiations, and help in the documentation process. Some agents specialize in specific segments, such as residential, commercial, or industrial properties, while others offer comprehensive services across multiple property types.

Regulatory Authorities: The real estate sector in India is regulated by various authorities at the central and state levels. The key regulatory authority is the Real Estate Regulatory Authority (RERA), established in 2016. RERA aims to protect the interests of buyers, promote transparency, and regulate the real estate industry through registration of projects, disclosure of information, and resolution of disputes.

RERA mandates developers to register their projects with the regulatory authority, provide detailed project information, adhere to timelines, and maintain a separate escrow account for each project to ensure that the funds collected from buyers are utilized for that specific project. The authority also provides a platform for grievance redressal and dispute resolution between buyers and developers.

Apart from RERA, other regulatory bodies such as the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), and Competition Commission of India (CCI) also have roles in overseeing specific aspects of the real estate industry, such as financing, real estate investment trusts (REITs), and competition regulations.

Main Segments of the Real Estate Sector

Residential Real Estate

The residential sector focuses on the buying and selling of properties used as homes or for non-professional purposes. The residential real estate sector is comprised of single-family homes, apartments, condominiums, planned unit developments, and more.

Commercial Real Estate

The commercial sector consists of real estate used for business purposes; common types include shopping malls, retail, office spaces, hotels, or other spaces used for business purposes.

In the commercial real estate sector, the largest REITs include Simon Property Group (SPG) and Brookfield Property (BPYUP). Investors in this sector also look at sales data for office buildings and retail developments and lease price trends for office and retail space.

Industrial Real Estate

The industrial real estate segment is comprised of properties used for manufacturing and production, such as factories, plants, and warehouses. Utility companies such as PG&E, for example, will own a lot of industrial real estate as assets, including but not limited to power plants that work to generate electricity.

Metrics Used in the Real Estate Sector

The different segments have different metrics that investors and analysts use to gauge the health of the real estate industry. All three segments feature publicly traded real estate investment trusts,or REITs, portfolios of properties whose stock prices investors frequently use to determine and analyze industry trends.

III. OPPORTUNITES AND THREATS

The Indian real estate market, a cornerstone of the countrys economic landscape, is characterized by its robust growth, policy support, and attractiveness to investors. However, the sector also faces several challenges and opportunities that influence its dynamics. With high demand driven by luxury residential sales and significant government backing, real estate presents itself as an attractive investment avenue and a reliable inflation hedge. Nonetheless, the markets inherent weaknesses, such as liquidity issues and substantial capital requirements, pose barriers for many potential investors. Concurrently, advancements in technology and tax benefits offer promising growth prospects, while threats like financial market volatility and regulatory complexities underscore the need for strategic navigation.

Strengths of the Indian Real Estate Sector:

1. High demand- The real estate market is seeing strong demand and it is predicted to expand by 15-18 million square feet.

2. Attractive investment- Being an industry with a large scope for growth, it is very attractive to the private sector and to foreign investors whose investments have risen 27% from last year.

3. Inflation Hedge- Real estate falls under the category of a good inflation hedge which means that it protects its investors from inflation in the country, which in turn increases its demand.

Weaknesses of the Indian Real Estate Sector:

1. Non-Liquid asset - Since real estate is not a liquid asset, people would rather have more liquid assets in case of unforeseen circumstances requiring cash in the current unstable economic climate. A survey shows that 52% of the people in India prefer other investments to real estate.

2. Large capital requirements- Many people in India do not have required finances to invest in capital heavy industries and prefer putting their money in less costly investments with quick and regular returns rather than real estate which is usually only profitable in the long run.

3. Lack of Technological development- India being a country that is still developing, does not have the required technology or resources needed for large real estate projects.

4. Inadequate Human Resources- India produces nearly four lakh civil engineers every year however in the same time frame, only 24,000 architects are developed.

Opportunities of the Indian Real Estate Sector:

1. Tax benefits on home loans- There is a tax deduction available on the interest paid on home loans which is used to buy a house of upto Rs. 2,00,000. This reduces the tax liability, increasing the demand for loans to purchase houses.

2. Technological Advancements- AI is expected to increase profitability in this industry by 40%. It indents on doing this through streamlining designs, analyzing historical trends, forecasting future data and by giving real-time insights into market trends.

3. Barrier to Entry- The industry has a low barrier to entry which means that more and more companies cant keep entering the industry with ease.

Threats of the Indian Real Estate Sector:

1. Volatility in Financial Markets- When there is an economic depression, the demand for real estate decreases and the property values stay stagnant causing a fall in the investments in this industry.

2. Unstable demand- The demand for real estate in India is very unstable since it depends on the season, location, and other circumstances. For example, in the holiday season in India when Diwali and Dussehra happen, the demand for real estate is nearly double of that during any other time of the year.

3. Competition from other investments- The demand for other investments such as stocks, bonds, and gold are much more valuable since they can be movable and liquid which is something many people are looking for from their investments currently.

4. Regulatory Difficulties - The real estate industry has experienced problems with regulatory compliances, which has led to delays, creating a relationship gap between the firms and the consumers.

Source: https://www.wrightresearch.in/encyclopedia/chapter-report/chapter-3- swot-analysis-of-the-indian-real-estate-sector-in-2024/

IV. SEGMENT WISE OR PRODUCT WISE PERFORMANCE

In FY 2025-26, the Indian real estate market shifted toward value-led growth. While overall residential sales volumes declined slightly, total sales value increased as demand surged for premium and luxury properties. Commercial office leasing broke historic records, driven primarily by Global Capability Centers (GCCs).

Segment-wise performance highlights for FY 2025-26:

1. Residential Real Estate

The residential market saw a sharp contrast between high-end segments and affordable housing.

• i Premium & Luxury: This segment became mainstream, capturing over 50% of pan-India market share. Sales in the luxury category grew by 22%, fueled by wealth concentration and NRI investments.

i Mid-Income: Held the largest market share (roughly 48%) and showed stable year-on-year growth, supported by returning middle-income buyers taking advantage of RBI rate cuts.

• i Affordable Housing: Continued to shrink, experiencing a 15-23% decline in volume due to high land/construction costs and a lack of new project launches in this price band.

2. Commercial Real Estate

The commercial sector maintained a strong upward trajectory.

• i Office Spaces: Achieved record-breaking gross leasing volumes across major metropolitan hubs. This was heavily propelled by Global Capability Centers (GCCs), IT services, and flexible workspace operators.

• i Retail & Malls: Developers shifted toward experience-led designs, integrating leisure, premium food and beverage (F&B), and entertainment zones.

3. Warehousing & Logistics

• i Industrial & Third Party Logistics: Surpassed leasing milestones for the fourth consecutive year, driven primarily by Third-Party Logistics (3PL) providers, e-commerce, and domestic manufacturing.

• i Rental Growth: Tight vacancies led to a 5-7% increase in rentals across major corridors.

V. OUTLOOK

Indias real estate market was characterized by strong sales growth, surge in new project launches, and robust price growth across both residential and office segments, supported by strong economic fundamentals, shifting consumer preferences, and the agility demonstrated by developers in responding to evolving market demands.

In the residential sector, the management aims to cater to the increasing demand for housing and create vibrant communities. They envision the development of well-planned townships that offer a range of housing options to suit different needs and preferences. This includes the construction of villas, penthouses, studio apartments, and other types of residential units. By providing diverse housing choices, the management aims to address the requirements of different segments of the population.

Additionally, the management recognizes the importance of commercial development in driving economic growth. They plan to focus on constructing commercial complexes that offer modern office spaces, retail outlets, and other amenities. These complexes will provide a conducive environment for businesses to thrive and contribute to the overall development of the region.

By undertaking these land development and construction projects, the management aims to create quality infrastructure and contribute to the growth of the real estate sector. They anticipate that these projects will not only meet the growing demand for residential and commercial spaces but also stimulate economic activity and generate employment opportunities.

Overall, the management is optimistic about the prospects of their projects and looks forward to making a positive impact on the real estate landscape by delivering high-quality developments that meet the needs and aspirations of individuals and businesses alike. etc.

VI. RISKS & CONCERNS

• i Regulatory and Legal Hurdles: Outline risks associated with land acquisition, environmental clearances, and compliance updates. Detail mitigation frameworks (e.g., the Model Tenancy Act, digitized approval processes).

• i Macro Volatility: Discuss the impact of inflation and global geopolitical tensions on raw material costs and interest rates, and how the company hedges these risks.

As an infrastructure company, there are several risks and concerns that the company needs to address in order to ensure its smooth operations and sustainable growth. These risks include credit risk, market risk (including liquidity and interest rate risk), operational risk, legal risk, competition risk and risks associated with investment management and the operating environment.

In addition to these general risks, the company is exposed to specific risks related to its investments and the overall operating environment. It closely monitors government policies and measures that may impact its business operations, and takes necessary actions to mitigate any associated risks.

Overall, the company recognizes the importance of understanding, measuring, and monitoring the various risks it faces. It has established policies and procedures to mitigate these risks as far as reasonably and practically possible, ensuring the companys resilience and adherence to best risk management practices.

VII. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Maxheights is a system-driven company. Our effective internal control system plays a crucial role in our efficient daily operations. The Company follows a systematic method of financial reporting of various transactions, efficiency of operations, safeguarding of assets and compliance with applicable statute and regulations. Our structured audit system is an on- going process. It forms a basis for reviewing the adequacy of internal control systems.

The Company maintains a well-documented internal control system aligned with its scale and complexity. The Internal Auditor reviews operations and reports directly to the Audit Committee. No material weaknesses were observed during the year. Compliance with statutory and regulatory requirements was regularly monitored.

VIII. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

Particulars	For the Financial Year Ended
	31.03.2026	31.03.2025
Revenue
Revenue from Operations (net)	826.67	457.96
Other income	22.15	3.97
Total Revenue	848.81	461.93
Expenditure
Purchase of stock-in-trade	134.94	816.82
Changes in inventories of finished goods, work-in-progress and stock-in-trade	475.49	427.76
Employee bene fits expense	42.42	33.19
Finance costs	33.09	21.11
Depreciation and amortisation expense	19.99	20.00
Other Expenses	23.79	38.24
Total Expenses	729.71	501.60
Profit / (Loss) before exceptional and extraordinary items and Tax	119.10	(39.67)
Exceptional items	-	-
Profit / (Loss) before extraordinary items and tax	119.10	(39.67)
Extraordinary items	-	-
Profit / (Loss) before Tax	119.10	(39.67)
Tax expense
Current tax	20.40	-
Earlier years tax	-	-
Deferred tax	0.59	0.31
Total Tax Expense	20.99	0.31
Profit / (Loss) from c ontinuing operations	98.12	(39.98)
Profit/(Loss) for the year	98.12	(39.98)
Earnings per equity share Basic	0.63	0.00
Diluted	0.63	0.00

The silent features of the financial performance are:

• i The total revenue has increased from Rs. 461.93 Lakhs to. Rs. 848.81 Lakhs

• i The company has recorded a profit after tax of Rs. 98.12 Lakhs during the year

2025-26.

• i Segment-wise or product-wise performance-as detailed in Boards Report.

IX. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES OR INDUSTRIAL RELATIONS FRONT INCLUDING NUMBER OF PEOPLE EMPLOYED

Max recognizes that human resources are the foundation of its business success. The company places a strong emphasis on attracting and retaining top talent, as it understands that skilled and motivated employees are crucial for achieving its goals.

The Company has undertaken employees development initiatives, which have very positive impact on the morale and team spirit of the employees. The company has continued to give special attention to human resources and overall development.

X. DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS:

Particu lars	FY 2025-26	FY 2024-25	% change
*Debtors Turnover	464.42	143.56	320.86
Inventory Turnover	0.29	0.19	0.1
Interest Coverage Ratio	5.20	0.07	5.13
**Current Ratio	145.08	91.84	53.24
Debt Equity Ratio	0.11	0.21	-0.1
Operating Profit Margin
Net Profit Margin	14.41	-	14.41
***Return on Net Worth	0.05	-	0.05

*The Debtor Turnover Ratio increased during the year primarily due to significant improvement in collection and subsequent reduction in Trade Receivables during the year. Please refer Note No. 2.6 of the Notes to Financial Statements.

** The Current Ratio has increased during the financial year as compared to the previous financial year, primarily due to reduction in current liabilities during the year. The change is mainly attributable to reduction in short-term borrowings and other financial liabilities. Please refer Note No. 2.11 of the Notes to Financial Statements.

***The Return on Net Worth (RONW) for Maxheights, an infrastructure business, experienced a significant change in the financial year. From NIL Return on net worth the company manages to earn 0.05% during the financial year 2025-26. There was a positive change in the return of net worth.

Cautionary Statement

This Management Discussion and Analysis contains forward-looking statements regarding the Companys objectives, projections, estimates, and expectations. These statements are subject to various risks and uncertainties, and actual results may differ significantly or materially from those expressed or implied in such statements.

The Company cautions that there are important factors and developments that could affect its operations and financial performance. These factors include, but are not limited to, the potential downward trend in the real estate sector, significant changes in the political and economic environment in India or key financial markets abroad, changes in tax laws, potential litigation, labor relations issues, fluctuations in exchange rates, and fluctuations in interest rates and other costs.

The Company advises readers to carefully consider these factors and to not unduly rely on forward- looking statements. These statements are based on current expectations, assumptions, and projections, and the Company disclaims any obligation to update or revise any forward-looking statements based on new information, future events, or other factors.

Investors and stakeholders should be aware that actual results may differ from the forward-looking statements and should exercise caution and judgment when making investment decisions based on such statements.

By Order of Board of Directors
For Max Heights Infrastucture Limited
Sd/-	Sd/-
Naveen Narang	Mansi Narang
Managing Director and CFO	Director
DIN:00095708	DIN: 07089546
Max Heights Infrastucture Limited
Regd. Off.: SD-65, Pitampura, New Delhi-110034
Date: 25th August, 2026
Place: Delhi
CIN: L67120DL1981PLC179487
E-Mail ID: maxinfra1981@gmail com, cs@maxheights com