Mindspace Business Parks REIT Management Discussions

This section presents our discussion and analysis of Mindspace REITs financial condition and results of operations. It is based on the Audited Consolidated Financial Statements of Mindspace REIT and the Asset SPVs (also referred to as ‘Mindspace, ‘Our Entity, ‘We, or ‘Us) for the year ended March 31, 2026. These financial statements comply with Indian Accounting Standards and applicable REIT regulations. Unless stated otherwise, all financial figures are rounded to the nearest million.

Forward-Looking Statement

This discussion includes ‘forward-looking statements that describe Mindspace REITs projections and expectations based on reasonable assumptions, past performance, and the projected movement of the global and Indian economy. These statements often use ‘believe, ‘plan, ‘anticipate, ‘continue, ‘estimate, ‘expect, ‘may, ‘shall, and other similar words. Such projections are subject to changes in risks and uncertainties linked to economic and market fluctuations. Factors such as continued inflation, rising interest rates, supply chain and labour market disruptions, capital market dislocation and volatility, and shifts in tenant behaviour may impact these projections. We will not update or revise any of our forward-looking statements, regardless of new information, future events, or other factors.

Indian Economic Overview

The global economic environment during FY26 was characterised by moderate growth, easing inflationary pressures and evolving monetary policy conditions across major economies. While geopolitical uncertainties and trade disruptions continued to influence global markets, resilient domestic demand across emerging economies helped sustain overall economic stability. Against this backdrop, Indias economy continued to demonstrate strong resilience, supported by sustained expansion in consumption, investment and services. Real GDP is estimated to grow by 7.4% in FY26, compared with 6.5% in FY25. Nominal GDP is projected to reach Rs 357.14 Lakh Cr, reflecting broad-based growth across economic activity. The services sector remains the primary engine of growth. Financial, real estate and professional services are expected to expand by 9.9%, while trade, hospitality and communication services are projected to grow by 7.5%. The sector now contributes over 56% of Gross Value Added, highlighting Indias continued structural shift towards a services-led economy supported by urbanisation, digitalisation and the expansion of knowledge-based industries. Investment and consumption indicators remain strong. Private consumption is projected to grow by 7.0%, reflecting stable domestic demand and improving urban economic activity. Gross fixed capital formation is expected to increase by 7.8%, supported by infrastructure development, capacity expansion and sustained public capital expenditure. Industrial momentum also remains steady, with manufacturing and construction projected to grow by around 7.0%, reinforcing the broader investment cycle. Macroeconomic conditions remain supportive, aided by calibrated fiscal and monetary policies, stable liquidity conditions and ongoing structural reforms aimed at strengthening long-term growth drivers. Corporate earnings are expected to grow by approximately 14-15% over FY27, supported by improving demand and rising activity across financials, capital goods, real estate and consumption-linked sectors. Supported by favourable structural drivers, policy support and sustained investment momentum, India remains well positioned to maintain its growth trajectory over the medium to long term.

[Source: First Advance Estimates of Gross Domestic Product, 2025-26, MOSPI]

Indian Office Market Overview

Indias office real estate market continues to demonstrate strong fundamentals, supported by sustained occupier demand and the countrys growing position as a global business hub. Gross leasing volumes are expected to remain above 80 MSF annually, with net absorption projected at 54-56 MSF in 2026, reflecting steady expansion across key occupier sectors. Supply additions are expected to reach 59-61 MSF, with nearly half comprising premium Grade A+ developments, indicating a structural shift towards higher-quality assets. Despite new completions, vacancy levels are expected to remain stable at around 14%, highlighting the markets strong absorption capacity and balanced supply-demand dynamics. Office rentals have also strengthened, supported by tightening vacancy levels and sustained occupier demand across major commercial markets.

Key Market Trends

GCCs Solidify Position as the Primary Engine of Office Demand

Global Capability Centres (GCCs) continue to be the cornerstone of the Indian office market, accounting for a significant 37.7% share of gross leasing in 2025. These entities leased over 31 MSF during the year, representing the highest volume ever recorded. The momentum is increasingly diversified, with the BFSI and manufacturing sectors driving expansion alongside the technology sector. With approximately 200 new GCCs entering India over the past two years and these organisations currently representing nearly 50% of all active space requirements, the long-term demand for high-quality institutional space remains exceptionally robust.

Shift towards Grade A+ Assets

Occupiers are increasingly prioritising high-quality, future-ready office spaces, with nearly 50% of upcoming supply expected to come from Grade A+ developments. Rising pre-commitments and tightening vacancy across prime micro-markets highlight strong demand for premium assets. This shift underscores a structural move towards institutional-quality developments.

Tightening Vacancy and Rental Appreciation

Sustained demand has pushed Pan-India vacancy to a five-year low of 15.2%, with core submarkets experiencing tight, single-digit availability. This limited supply of premium space has accelerated rental growth across all major cities, led by double-digit growth in markets like Hyderabad. Institutional landlords continue to command significant premiums for assets offering superior quality and tenant amenities.

Intensifying Flight-to-Quality

As ‘in-office mandates become standard, rising occupancy levels are creating a space crunch in existing portfolios, triggering widespread expansion. Occupiers are increasingly prioritising high-quality, future-ready Grade A assets to accommodate this footprint growth. Total Grade A inventory is projected to surpass the 1 Bn sq ft milestone by mid-2027 to meet this evolving institutional demand.

Broadening Occupier Base

The market is witnessing an increasingly diversified occupier mix as manufacturing, industrial, and BFSI sectors expand their footprints alongside the technology sector. In 2025, these non-tech segments achieved nearly equal market shares, contributing to a more balanced and resilient demand profile. This broad-based participation reduces cyclical risks and reinforces the long-term stability of the institutional office sector.

Outlook

Indias office real estate market is expected to sustain its strong growth momentum, supported by the continued expansion of Global Capability Centres, a rising multinational occupier presence, and the increasing adoption of flexible workplace strategies. Supply additions are expected to remain measured relative to demand, with a growing share of premium Grade A+ developments enhancing overall asset quality. Stable vacancy levels, sustained rental growth, and rising institutional participation are expected to further strengthen market fundamentals. Increasing investment activity, along with greater participation from institutional developers and listed platforms, is also improving market transparency and capital formation. Supported by favourable structural drivers, strong demand visibility, and Indias growing global economic importance, the office market remains well positioned for sustained long-term growth.

Mindspace REIT Overview

We are one of Indias leading office REIT platforms, owning and operating a diversified portfolio of Grade A business parks and office assets across the Mumbai region, Hyderabad, Pune and Chennai. As of March 31, 2026, our portfolio comprised 39.3 MSF of leasable area, including 32 MSF of completed area, 5.4 MSF of under construction area and 1.9 MSF of future development area, with a WALE of 7.2 years. On pro forma basis our portfolio size increased to 44.4 MSF (including 2 assets acquired in Chennai post March 31, 2026). Our portfolio is anchored by institutional sponsorship and a fully integrated operating model, enabling consistent asset quality and performance across markets. Backed by the K Raheja Corp Group, we benefit from deep development expertise, a strong market presence and in-house facility management capabilities. This foundation is complemented by a diversified and high-quality tenant base of over 284 marquee occupiers, with GCCs and multinational corporations forming a significant share of occupancy. Together, these strengths position us to drive sustainable growth, with a long-term strategy focused on:

- Driving leasing momentum and rental reversion across existing assets

- Pursuing value-accretive acquisitions in high-entry-barrier micro-markets

- Executing disciplined development, including selective expansion into data centres with long lock-in structures

Operational Performance

The portfolio demonstrated strong operating momentum during the year, supported by sustained demand for Grade A assets and disciplined leasing execution.

Leasing and Occupancy

Gross leasing during FY26 stood at 7.1 MSF, with re-leasing spreads of 31.8% on 4.2 MSF and average rent for area leased at 90 PSF per month. Committed occupancy (excluding Pocharam) was approximately 95.7% as of March 31, 2026. In-place rent increased to approximately 80.4 PSF per month, reflecting continued mark-to-market capture, particularly across Hyderabad and other core micro-markets.

Tenant Profile

We host a diversified portfolio of global and domestic occupiers across sectors such as technology, financial services, engineering, consulting and emerging enterprise segments. This balanced tenant base enhances our portfolio resilience while supporting stable, long-term leasing visibility across our Grade A office campuses. GCCs continue to be a key driver of demand across our portfolio, reflecting Indias growing role as a global hub for technology, research and shared services. Alongside GCCs, we host a strong base of multinational corporations and leading domestic enterprises. This reinforces our positioning as a preferred platform for global occupiers establishing or expanding their India presence. Our portfolio includes 284 marquee tenants spanning global technology firms, financial institutions, engineering companies and new-age enterprises. This diversified tenant mix helps mitigate concentration risks while supporting consistent occupancy across key office markets. Guided by our wellbeing-led workplace design, we continue to create integrated campus environments that combine high-quality infrastructure with curated amenities, landscaped spaces and wellness-focused initiatives. These initiatives are designed to enhance employee engagement, productivity and overall work-life balance.

- 284 tenants across the portfolio

- Updated tenant mix by sector

- Share of GCC tenants 51.7%

- Share of foreign multinational tenants 72%

Tenant Engagement and Workplace Experience

Mindspace continues to strengthen its tenant relationships through engagement initiatives that foster collaboration, enhance workplace experience and support vibrant campus environments across our business parks. Through curated campus activities, tenant interaction platforms and structured feedback mechanisms, we work closely with our occupiers to understand evolving workplace needs and continuously enhance service delivery. These initiatives also help create a dynamic workplace ecosystem that supports employee engagement and sustains return-to-office momentum. Shared life and amenity spaces across campuses further enhance the tenant experience by integrating dining, wellness, recreation and collaborative environments within our business parks.

- Initiatives such as Table Talks continue to be conducted this year as well, fostering tenant partnerships through open communication and proactive resolution of tenant needs

- Experience centre and shared amenity space area: 1,30,000 SF

Events Conducted in 7 Parks

45+

Attendance

90,000+

Digital Impressions

25,00,000+

Avg Event Rating

4.7/5

Overall Feedback Sample Size

4,908

Portfolio Expansion and Development

During FY26, we continued to strengthen our portfolio through strategic acquisitions and development initiatives across key office markets. We acquired prime commercial assets in Mumbais CBD and Pune, along with The Square 110 in the Financial District in Hyderabad, adding a combined leasable area of approximately 1.6 MSF and further strengthening our presence in high-entry-barrier micro-markets. We also maintain a strong growth pipeline with approximately 7.1 MSF of development potential, alongside vacant area lease-up opportunities of around 1.4 MSF (excluding Pocharam) across our existing portfolio. In addition, ongoing SEZ-to-Non-Processing Area (NPA) conversions across select assets provide us with greater flexibility to cater to evolving tenant demand while unlocking incremental revenue potential. Together, these initiatives position us to capture future growth driven by the continued expansion of GCCs and sustained demand for high-quality office spaces across Indias leading commercial hubs.

Total Leasable Area added through Acquisitions During FY26

6.8 MSF*

Vacant Area Available For Lease (Excluding Pocharam)

1.4 MSF

*Including 2 assets acquired in Chennai post March 31, 2026

Key Portfolio Additions During the Year

The Square 110, Financial District, Hyderabad

Acquisition of a ~0.8 MSF Grade A office campus in Hyderabads Financial District, marking our first third-party acquisition and strengthening our presence in one of Indias leading technology and GCC hubs.

Ascent-World, Mumbai

Addition of a newly completed Grade A office tower in Worli, expanding our footprint in Mumbais premium commercial district and strengthening our CBD presence.

The Square Avenue 98, BKC Annex, Mumbai

Acquisition of a premium office asset in BKC Annex, strengthening our presence in the Bandra-Kurla Complex office district.

IT Building Pune

Expansion into Punes Kalyani Nagar micro-market through the acquisition of a Grade A office building, further strengthening our footprint in one of the citys established commercial corridors.

Operational Performance

FY26 reflects the strength of our resilient business model, strategic clarity, and disciplined execution, reinforcing our position as a leading Grade A office platform in India. Our performance continues to demonstrate consistency and momentum, with a clear focus on enhancing long-term unitholder value.

Operational Excellence

Our operational performance remained robust, supported by sustained demand from Global Capability Centres (GCCs) and multinational corporations.

- Leasing Momentum: We recorded total gross leasing of 7.1 MSF for FY26, reflecting strong demand across key micro-markets.

- Record Occupancy: Portfolio committed occupancy stood at 95.7% as of March 31, 2026, among the highest levels since listing, with key assets demonstrating strong stabilisation

- Rental Growth and Mark-to-Market: Re-leasing spreads remained strong at 31.8%, with rentals in select micro-markets reaching Rs 120 PSF. Our annualised in-place rent stood at ~Rs 80.4 PSF.

- SEZ Demarcation: We completed demarcation of ~2.8 MSF, with ~89% leased, effectively addressing vacancy concerns

Strategic Development

We continue to strengthen our portfolio through a calibrated mix of development and asset enhancement.

- Project Delivery: Key completions during the year included The Pearl Club (Madhapur) and Mindspace Fusion (Airoli East)

- Development Pipeline:

o Under-construction: 5.4 MSF

o Near-term pipeline: 1.9 MSF (advanced approvals)

o Pre-leased developments: ~[High pre-leasing visibility]–100% for select assets]

- Data Center Portfolio: Total footprint of 1.7 MSF (operational + pipeline), reinforcing our differentiated platform positioning

- Asset Upgrades (‘H23 Initiatives): Investment of ~Rs 6.8 Bn since listing, focused on enhancing tenant experience and asset quality

Financial Performance (FY26)

Our financial performance reflects strong organic growth and disciplined capital allocation.

- Net Operating Income (NOI): FY26 NOI stood at Rs 26 Bn, registering a growth of 29.2% YoY

- Distribution per Unit (DPU): FY26 DPU stood at Rs 24.09 per unit, reflecting a growth of 9.7% YoY

- Capital Structure:

o Loan-to-Value (LTV): 24.3%

o Cost of debt: 7.41% p.a.p.m

o Fixed-rate debt: 67.5%

Investor Value Creation

- Portfolio Expansion: Expanded portfolio by 2.2 MSF across prime micro-markets

- Regulatory Tailwinds: REIT classification as equity effective January 2026, with expected index inclusion supporting liquidity and visibility

- Total Returns: Delivered strong total returns of 15.7% for FY26

ESG Leadership and Recognition

- Ranked among the Top 5 REITs globally in the S&P Global Corporate Sustainability Assessment

- Continued leadership in green-certified office developments

Capital Structure and Liquidity

The REIT continues to maintain an optimal capital structure, with Net Debt to Market Value at 24.3% as of March 31, 2026, providing adequate headroom for growth initiatives. The weighted average cost of debt stood at 7.41% p.a.p.m, supported by diversified borrowings including green and sustainability-linked instruments. In addition, the balance sheet strength provides flexibility to pursue acquisitions and execute the development pipeline while maintaining disciplined leverage levels.

Outlook

We remain well positioned to capitalise on sustained demand for high-quality Grade A office spaces in India, supported by the continued expansion of GCCs and multinational corporations. The Indian office market is also witnessing a clear ‘flight to quality, with occupiers increasingly favouring well-located, campus-style developments that offer strong infrastructure and integrated workplace environments. Against this backdrop, GCCs continue to account for a significant share of leasing activity and contribute meaningfully to our occupancy. This structural demand positions us to benefit from stable, long-term leasing across our portfolio. At the same time, our strong operational performance, reflected in record committed occupancy levels and healthy leasing spreads, further strengthens our ability to capture mark-to-market rental upside across key micro-markets. Looking ahead, our growth strategy will be anchored in a balanced approach that combines accretive acquisitions with a robust development pipeline. Ongoing developments across key assets, along with our recent acquisitions in strategic CBD markets such as Mumbai and Hyderabad, are expected to enhance both the quality and scale of our portfolio while supporting long-term income growth. Importantly, our disciplined capital structure and healthy balance sheet headroom provide the flexibility to pursue attractive investment opportunities as they arise. Supported by favourable sector fundamentals, active asset management initiatives, and sustained demand from global occupiers, we remain confident of delivering stable distributions while creating long-term value for our unitholders.

1. Risks and Concerns

The ‘Risk Factors section on pages 156 to 160 of the Annual Report provides a detailed overview of the risks and concerns that could affect our operations.

2. Basis of Preparation of Consolidated Financial Statements

We have explained the basis for preparing our consolidated financial statements in the ‘Basis of Preparation section on page 418 of the Annual Report.

3. Summary of Material Accounting Policies

The ‘Material Accounting Policies section on pages 419 to 436 of the Annual Report outlines our key accounting policies.

4. Key Components of the Consolidated Statement of Profit and Loss

Our revenue from operations comes from the following key sources:

- Facility rentals

- Income from maintenance services

- Revenue from works contract services

- Revenue from power distribution

- Other operating income

Facility Rentals

Facility rentals comprise base rentals from our properties, income from car parking and other services, and certain Ind AS adjustments for lease straight-lining and security deposit discounting:

- Base Rentals: Represent rental income from leasing our assets

- Income from Car Parking and Others: Primarily includes revenue from car parking, kiosks, signage, ATMs, promotional events, and similar sources

Income from Maintenance Services

We derive this income from tenants for Common Area Maintenance (CAM) services, as outlined in their agreements. It also includes revenue from CAM services provided to third parties within our assets, where applicable.

Revenue from Works Contract Services

This includes earnings from construction services tailored to customer specifications.

Revenue from Power Distribution

We generate this income by supplying power to tenants within the notified SEZ, following tariff regulations set by the Maharashtra Electricity Regulatory Commission (MERC).

Other Operating Income

Our other operating income mainly includes:

- Interest Income from Finance Leases: Includes interest from fit-out rentals classified as finance leases, where the lessee takes on most risks and rewards of ownership

- Sale of surplus construction materials and scrap

- Compensation Received from Customers

Interest and Other Income

We earn interest income from:

- Fixed deposits with banks

- Electricity deposits

- Income tax refunds

- Fair value gain through profit and loss for investment

- Write back of liabilities

- Other miscellaneous sources

Expenses

Our key expenses include:

- Power purchase costs

- Employee benefit expenses

- Management fees

- Other expenses

- Finance costs

- Depreciation and amortisation expenses

Power Purchase Costs

This includes expenses for power procurement, transmission charges, and other costs related to supplying power to tenants within the notified SEZ.

Employee Benefit Expenses

These primarily include salaries and wages, provident fund and other fund contributions, gratuity, compensated absences, and staff welfare expenses.

Management Fees

This is the fee paid to the Manager for property management services. It is net of employee expenses directly incurred by the Asset SPVs, as per the property management and support services agreement. It also includes investment management fee paid by the REIT to Manager for investment management services.

Other Expenses

Other expenses primarily include:

- Repairs and maintenance, property tax, insurance and security expenses, electricity, water, and diesel charges

- Business and project support fees paid to KRC groups entities

- Rates and taxes

- Corporate social responsibility (CSR) expenses

- Expenses for assets written off or demolished

- Revenue share, business promotion, miscellaneous expenses, provisions for unbilled revenue, legal and professional fees and advertisement expenses

Earnings Before Finance Costs, Depreciation, Amortisation, Regulatory Income/Expense, Exceptional Items, and Tax (EBITDA)

We prioritise clarity and transparency in financial reporting. To achieve this, we present earnings before finance costs, depreciation, amortisation, regulatory income/expense, exceptional items, and tax as a separate line item in the statement of profit and loss. EBITDA reflects net profit before interest expense, taxes, depreciation, amortisation, and exceptional items. However, Ind AS 114 (Regulatory Deferral Accounts) requires movements in all regulatory deferral account balances to be presented separately from other income and expenses. Therefore, in the Consolidated Financial Statements, we disclose these movements separately in the statement of profit and loss. Specifically, they appear after the line item ‘Profit before rate-regulated activities, exceptional items and tax and do not form part of EBITDA.

Finance Costs

Finance costs primarily include:

- Interest expenses mainly on borrowings from banks, financial institutions, debentures, and bonds

- Unwinding of interest expenses on security deposits

- Other finance charges

We capitalise borrowing costs related to under-construction properties. After completion, we add interest costs to the statement of profit and loss, increasing finance costs.

Depreciation and Amortisation Expenses

These expenses cover the depreciation of property, plant, and equipment and investment property, as well as the amortisation of intangible and right-of-use assets.

Regulatory Income/Expense

As a deemed power distribution licensee in the SEZ, certain Asset SPVs charge tenants tariffs that are pre-approved by MERC. Under the Multi-Year Tariff (MYT) regulations, tariff petitions are submitted for each control period based on projected expenses and revenue. MERC reviews these projections and approves the applicable tariffs. Subsequently, audited accounts are submitted for the truing-up process. During truing-up, MERC compares the actual expenses and revenue with the previously approved figures and adjusts future tariffs accordingly. These adjustments, recorded as the ‘impact on account of true-up, are recognised in the financial statements as regulatory income or expense.

Tax Expense

Our tax expenses include:

1. Current tax

2. Deferred tax charges (net)

Companies can opt for a concessional tax rate of 25.17% (including cess and surcharge) under the Indian Income Tax Act. To qualify, they must meet specific conditions, such as foregoing other tax incentives and using MAT credits (New Tax Regime). As of 31 March 2026, we have not opted for the New Tax Regime. We continue to discharge tax liabilities under the existing tax regime, except in the case of Mack Soft Tech Private Limited, an asset SPV of Mindspace REIT, which has opted for the New Tax Regime.

Comparison of Financial Numbers

Particulars	FY26 (Rs Mn)	Share (%) FY26	FY25 (Rs Mn)	Share (%) FY25
Facility Rentals	24,750	76.5%	19,652	76.70%
Maintenance Services	6,170	19.1%	4,991	19.50%
Revenue from Power Supply?	885	2.7%	586	2.30%
Revenue from Works Contract Services	13	0.0%	1	0.00%
Interest Income from Finance Lease	416	1.3%	295	1.20%
Sale of Surplus Construction Material	85	0.3%	71	0.30%
Compensation	23	0.1%	31	0.10%
Revenue from Operations?	32,342	100.0%	25,627	100.00%
Cost of Works Contract Services	0	0.0%	1	0.00%
Direct Operating Expenses	5,707	17.6%	5,010	19.50%
Net Operating Income?	26,636	82.4%	20,616	80.40%

Note: (1) Includes regulatory income/(expense) from the power business

(2) Represents 100% of the SPVs, including the minority interest in Madhapur SPVs

Movement in Revenue from Operations and NOI by Assets

Assets	Revenue from Operations (Rs Mn) FY26	Revenue from Operations (Rs Mn) FY25	Variance (%)	NOI (Rs Mn) FY26	NOI (Rs Mn) FY25	Variance (%)
Mindspace Airoli East	4,265	4,045	5.4%	3,056	2,921	4.6%
Mindspace Airoli West	5,238	4,063	28.9%	4,047	2,987	35.5%
Mindspace Malad	1,089	1,028	5.9%	956	898	6.5%
The Square BKC	450	444	1.4%	417	411	1.4%
Ascent- Worli?	336	-	100.0%	288	-	100.0%
The Square Avenue 98?	84	-	100.0%	82	-	100.0%
Mumbai Region	11,462	9,580	19.6%	8,846	7,217	22.6%
Gera Commerzone Kharadi	3,639	2,429	49.8%	3,063	1,774	72.7%
The Square Nagar Road	991	957	3.5%	765	730	4.8%
Commerzone Yerawada	2,377	2,181	9.0%	1,862	1,672	11.3%
Pune IT Building?	30	-	100.0%	23	-	100.0%
Pune	7,037	5,567	26.4%	5,713	4,176	36.8%
Mindspace Madhapur	10,495	9,255	13.4%	8,963	7,810	14.8%
Commerzone Raidurg?	1,638	115	1324.6%	1,284	108	1088.6%
Mindspace Pocharam	-	1	-100.0%	-31	-24	28.2%
The Square 110 Financial District?	365	-	100.0%	143	-	100.0%
Hyderabad	12,498	9,371	33.4%	10,359	7,895	31.2%
Commerzone Porur, Chennai	1,317	1,070	23.1%	1,068	851	25.5%
Facility Management Division	1,900	1,569	21.1%	650	478	35.9%
Inter Company Eliminations	-1,868	-1,531	22.0%	-	-	0.0%
Total	32,342	25,627	26.2%	26,636	20,616	29.2%

NOI came in higher at Rs 26,636 Mn in FY26 as compared to Rs 20,616 Mn in FY25 primarily due to following reasons:

- Rental addition from acquisitions in Mumbai and Hyderabad and from new leases in Madhapur, Airoli, Pune and Porur

- Mark-to-market rental growth and escalations during the year

Note: (1) w.e.f from 09th January, 2026 (2) w.e.f from 06th March, 2025 (3) w.e.f from 22nd July, 2025

Profit and Loss Statement Analysis

Particulars	For the Year Ended March 31, 2026 (Rs Mn)	For the Year Ended March 31, 2025 (Rs Mn)	% of Variance
Revenue From Operations	32,163	25,961	23.9%
Other Income	767	795	(3.5)%
Total Income	32,931	26,756	23.1%
Expenses
Cost Of Work Contract Services	-	1	(100.0)%
Cost of Materials Sold	3	-	0.0%
Cost of Power Purchased	920	726	26.7%
Employee Benefits Expense	367	303	21.3%
Management Fees	876	691	26.8%
Repairs and Maintenance	2,165	1,616	34.0%
Electricity, Water and Diesel Charges	1,044	952	9.6%
Property Tax	812	863	(5.9)%
Other Expenses	1,599	1,923	(16.9)%
Total Expenses	7,785	7,075	10.0%
Earnings before finance costs, depreciation and amortisation, regulatory income/expense, exceptional items and tax	25,146	19,682	27.8%
Finance costs	8,364	5,573	50.1%
Depreciation and amortisation expense	4,790	4,060	18.0%
Profit before rate regulated activities, exceptional items and tax	11,992	10,049	19.3%
Add: Regulatory income/(expense) (net)	129	(132)	(198.1)%
Add: Regulatory income/(expense) (net) in respect of earlier years	50	(202)	(124.6)%
Profit before exceptional items and tax	12,171	9,715	25.3%
Exceptional items	(448)	(33)	1247.3%
Profit before tax	11,723	9,682	21.1%
Current tax	3,635	2,760	31.7%
Deferred tax charge	1,146	1,784	(35.8)%
Tax expense	4,781	4,544	5.2%
Profit for the year	6,943	5,137	35.1%
Profit for the year attributable to unit holders of Mindspace REIT	6,519	4,763	36.9%
Profit for the year attributable to non-controlling interests (NCI)	424	375	13.2%

Key Highlights

Revenue from Operations

Revenue from operations increased by Rs 6,202 Mn on account of higher occupancy, contractual escalations, positive re-leasing spreads, commencement of rent from new area and acquisitions done during prior year and current year

Power Purchase Costs

Power purchase costs increased by Rs 194 Mn, reflecting an increase in energy-related expenses.

Other Expenses

Other expenses declined from FY25 to FY26, primarily due to:

- Rs 141 Mn increase in Insurance and Security Expense

- Rs 171 Mn decline in assets written off or demolished

- Rs 88 Mn fall in business promotion expenses

- Rs 277 Mn movement in provision for revenue share

Employee Benefit Expenses

Employee benefits, covering salaries and wages, provident fund and other funds, gratuity, compensated absences, and staff welfare expenses, rose by Rs 64 Mn during the year.

Management Fees

Management fees, based on a percentage of lease rent, license fees, car park charges, compensation, and fit-out rentals, increased by Rs 185 Mn in line with the corresponding increase in the mentioned revenue streams.

Finance Costs

Finance costs increased by Rs 2,791 Mn mainly on account of incremental borrowings for capital expenditure and acquisitions during the year. As of March 31, 2026, our cash and cash equivalents stood at Rs 12,176 Mn, primarily comprising:

- Balances in current and deposit accounts with banks, with original maturity under three months Investment in Overnight Mutual Funds

- Cash on hand

Undrawn facilities Rs 5,952 Mn, while other bank balances and fixed deposits stood at Rs 1,868 Mn. Our strong liquidity position, backed by cash and treasury reserves, ensures financial stability and supports future obligations.

Summary of Cash Flow Statement

Particulars	FY26 (Rs Mn)	FY25 (Rs Mn)
Net Cash Generated/(Used in) from Operating Activities	24,139	20,173
Net Cash (Used in)/Generated from Investing Activities	(12,933)	(15,000)
Net Cash Generated/(Used in) Financing Activities	(9,188)	(4,727)
Net Increase/(Decrease) in Cash and Cash Equivalents	2,019	446
Adjustments for Net Gains on Fair Value of Mutual Funds (FVTPL)	(1)	1
Cash and Cash Equivalents at the Beginning of the Period/Year	1,677	1,886
Add/Less: Net Cash/(Bank Overdraft) Acquired on Asset Acquisition	(67)	656
Cash and Cash Equivalents at the End of the Period/Year (Net of Book Overdraft)	3,628	1,677
Cash on Hand	3	3
Balance with Banks
Current Accounts	6,937	6,222
Deposit Accounts with Three Months or Less Maturity	5,211	-
Cash and Cash Equivalents at the End of the Period/Year	12,151	6,225
Investment in Mutual Funds	25	155
Less: Bank Overdraft	(8,548)	(4,702)
Cash and Cash Equivalents at the End of the Period/Year (Net of Book Overdraft)	3,628	1,677

Cash Flow from Operating Activities

Net cash generated from operating activities stood at Rs 24,139 Mn in FY26. Profit before tax for the year was Rs 11,723 Mn and was adjusted for non-cash items as well as financing and investing-related items, mainly comprising finance costs of Rs 8,364 Mn and depreciation and amortisation expenses of Rs 4,790 Mn. Working capital movement during the year was driven by a decrease in trade payables of Rs 205 Mn, reduction in trade receivables of Rs 350 Mn, increase in other inventories of Rs 13 Mn, increase in other financial assets and other assets of Rs 70 Mn, and increase in other non-current and current liabilities (including financial liabilities) and provisions amounting to Rs 2,850 Mn. In addition, regulatory deferral account assets decreased by Rs 179 Mn. Direct taxes paid during the year (net of refunds) amounted to Rs 3,409 Mn.

Capital Expenditure and Investments

Capital expenditure includes additions made during the financial year to property, plant and equipment, capital work-in-progress, investment property, intangible assets, and investment property under construction. In FY26, we incurred capital expenditure of Rs 18,106 Mn, for construction activities at Mindspace Madhapur, Mindspace Airoli West, and Mindspace Airoli East, as well as for upgrading and enhancing our existing assets. It also includes payments made for acquisition of SPV and their related transaction cost.

Liquidity and Capital Resources

Our low leverage and robust credit profile offer adequate headroom for future growth.

For the year ended March 31, 2026, we raised Rs 67.1 Bn in fixed cost debt from capital markets via issuance of NCDs and CPs bearing coupons ranging from 5.89% to 7.30% on a p.a.p.m. basis.

Out of the total Rs 67.1 Bn raised, Rs 5.5 Bn was through a Sustainability-Linked Bond issued to IFC, the investment arm of the World Bank Group.

Successfully repaid Rs 25.6 Bn worth of CPs on maturity.

Strategically increased our exposure to fixed cost debt to c. 67.5% of our total outstanding debt.

Successfully repaid Rs 69,155 Mn worth of loans during FY26, which includes scheduled repayments prepayments.

Debt raised during the year was predominantly used for refinancing existing debt to fund capital expenditure and acquisitions.

Debt Profile

Description	Fixed/Floating	Total Facility (Rs Mn)	Undrawn Facility (Rs Mn)	Principal O/S (Rs Mn)	Interest Rate (p.a.p.m)	Wt. Avg. Maturity (Years)	Principal Repayment FY27	Principal Repayment FY28	Principal Repayment FY29	Principal Repayment FY30	Principal Repayment FY31	Principal Repayment FY32 & beyond	Total
At REIT Level
NCD 4	Fixed	5,000	-	5,000	7.9%	1.3	-	5,000	-	-	-	-	5,000
NCD 5	Fixed	5,500	-	5,500	8.0%	0.0	5,500	-	-	-	-	-	5,500
NCD 6	Fixed	5,000	-	5,000	7.7%	0.3	5,000	-	-	-	-	-	5,000
NCD 7	Fixed	5,000	-	5,000	7.9%	0.7	5,000	-	-	-	-	-	5,000
NCD 8	Fixed	3,400	-	3,400	7.9%	1.0	3,400	-	-	-	-	-	3,400
NCD 9	Fixed	5,000	-	5,000	7.9%	3.1	-	-	-	5,000	-	-	5,000
NCD 10	Fixed	6,500	-	6,500	7.9%	5.2	-	-	-	-	-	6,500	6,500
NCD 11	Fixed	5,000	-	5,000	7.7%	1.9	-	5,000	-	-	-	-	5,000
NCD 12	Fixed	6,000	-	6,000	7.2%	4.1	-	-	-	-	6,000	-	6,000
NCD 13	Fixed	5,500	-	5,500	7.3%	7.4	-	-	-	-	-	5,500	5,500
NCD 14	Fixed	6,000	-	6,000	7.0%	1.5	-	6,000	-	-	-	-	6,000
NCD 15	Fixed	7,000	-	7,000	7.1%	4.6	-	-	-	-	7,000	-	7,000
NCD 16	Fixed	12,000	-	12,000	6.9%	2.7	-	-	12,000	-	-	-	12,000
NCD 17	Fixed	5,600	-	5,600	7.1%	2.9	-	-	5,600	-	-	-	5,600
CP	Fixed	5,400	-	5,400	6.4%	0.1	5,400	-	-	-	-	-	5,400
TL/LRD - MBPP/L	Free Float	11,900	3,000	8,392	7.4%	10.7	458	576	680	801	951	4,927	8,392
TL/LRD - Sundew	Free Float	1,500	-	582	8.1%	5.2	78	98	110	117	141	38	582
TL/LRD - Pramaan	Free Float	7,275	-	7,076	7.4%	14.1	284	365	392	422	409	5,204	7,076
TL/LRD - KRC Infra	Free Float	9,690	-	7,277	7.3%	8.3	851	973	1,102	1,215	330	2,806	7,277
TL/LRD - Horizonview	Free Float	1,500	-	1,451	7.5%	10.6	29	44	78	111	144	1,044	1,451
TL/LRD - Gigaplex	Free Float	6,384	-	5,378	7.3%	12.1	218	251	284	340	389	3,897	5,378
TL/LRD - Sundew Real Estate	Free Float	2,500	-	2,179	8.3%	12.4	60	65	80	110	120	1,744	2,179
OD/LOC	Free Float	12,946	2,952	9,994	7.6%	9.2	1,619	267	454	1,822	321	5,511	9,994
Total		1,41,595	5,952	1,30,229	7.41%	5.2	27,896	18,640	20,779	9,937	15,805	37,171	1,30,229
Repayment (%)							21.40%	14.30%	16.00%	7.60%	12.10%	28.50%	100%

Note: NCD – Non-Convertible Debentures TL – Term Loan Principal outstanding for CP is the value payable on maturity

Corporate Ratings for Mindspace Business Parks REIT (as of March 31, 2026)

Overall Ratings

- CRISIL Ratings: ‘AAA/Stable

- ICRA Ratings: ‘[ICRA]AAA (Stable)

Specific Credit Ratings for Debt Instruments:

NCD/CP	Amount (Rs Cr)	Rating	Crisil Ratings	ICRA Ratings
CP*	3,100	Dual Rated	CRISIL A1+	[ICRA] A1+
NCD	500	Dual Rated	Crisil AAA/Stable	[ICRA]AAA (Stable)
NCD	340	Dual Rated	Crisil AAA/Stable	[ICRA]AAA (Stable)
NCD	500	Dual Rated	Crisil AAA/Stable	[ICRA]AAA (Stable)
NCD	500	Dual Rated	Crisil AAA/Stable	[ICRA]AAA (Stable)
NCD	500	Dual Rated	Crisil AAA/Stable	[ICRA]AAA (Stable)
NCD	500	Single Rated	-	[ICRA]AAA (Stable)
NCD	650	Dual Rated	Crisil AAA/Stable	[ICRA]AAA (Stable)
NCD	550	Dual Rated	Crisil AAA/Stable	[ICRA]AAA (Stable)
NCD	600	Dual Rated	CRISIL AAA/ Stable	[ICRA] AAA (Stable)
NCD	550	Single Rated	-	[ICRA] AAA (Stable)
NCD	600	Single Rated	CRISIL AAA/ Stable	-
NCD	700	Dual Rated	CRISIL AAA/ Stable	[ICRA] AAA (Stable)
NCD	1200	Single Rated	-	[ICRA] AAA (Stable)
NCD	560	Single Rated	-	[ICRA] AAA (Stable)

*The above table comprises all NCDs and CPs that were outstanding at any time during FY26. As of March 31, 2026, the outstanding balances of NCDs and CPs were Rs 82,500 Mn and Rs 5,400 Mn, respectively

Key Ratios Highlights (as of March 31, 2026)

- Loan-to-Value (LTV) Ratio: 24.3% in FY26, reflecting a prudent leverage position

- Undrawn Facilities: Rs c. 5.9 Bn in undrawn committed facilities, providing ample liquidity and flexibility for portfolio growth.

Significant Changes in Financial Ratios (Consolidated)

Particulars	FY26	FY25
NOI Margin	82.4%	80.4%
Loan-to-Value (LTV)*	24.3%	24.3%
Gross Debt to NOI	4.9x	4.6x
Net Debt to NOI	4.4x	4.3x

Note*: Adjusted for minority interest, wherever applicable

Off-balance Sheet Arrangements

We do not have any material off-balance sheet arrangements.

Distributions

Our Net Distributable Cash Flow (NDCF) comes from the cash flows generated by the assets and investments of Mindspace REIT. As per REIT regulations, at least 90% of the NDCF from each Asset SPV must be distributed to Mindspace REIT. This distribution is made in proportion to the REITs shareholding in the respective Asset SPVs, subject to the provisions of the Companies Act, 2013. We receive this NDCF in multiple forms, including dividends, interest income and principal loan repayments. It may also be received through capital reductions and buybacks from Asset SPVs, or through proceeds from the sale of investments or assets directly held by Mindspace REIT. Additionally, NDCF may be received in any other form permitted under REIT regulations.

The Manager is obligated to distribute at least 90% of the NDCF to unitholders as REIT distributions. These distributions are made on a quarterly basis. The first distribution was made for the quarter ended December 31, 2020, following the listing of the REITs units. In line with REIT regulations, distributions are ensured within 15 days of declaration.

FY26 Total Distribution

Rs 15,164 Mn

Translating to Rs 24.09 per Unit

Tax Implications of Distributions

Under Section 115UA of the Income Tax Act, 1961, income distributed by a REIT is taxed in the hands of unitholders in the same manner and proportion as the underlying income we receive or accrue.

Taxability of Income Based on Residential Status

Residential Status of Unitholders	Nature of Income	Tax Rates
Resident Unitholders	Interest	At Applicable Rates*
	Rental	At Applicable Rates*
	Return of Capital	To be Adjusted from Cost of Acquisition of Units**
	Qualified Dividend	Tax-exempt (Refer to the Note below)
	Disqualified Dividend	At Applicable Rates* (Refer to the Note below)
	Other Income Taxable in the Hands of the REIT	Tax-exempt
Non-Resident Unitholders	Interest	5%+ +
	Rental	At Applicable Rates**
	Qualified Dividend	Tax-exempt (Refer to the Note below)
	Disqualified Dividend	At Applicable Rates** (Refer to the Note below)
	Other Income Taxable in the Hands of the REIT	Tax-exempt

*Income is subject to Tax Deducted at Source (TDS)

**Non-resident unitholders may benefit from favourable tax provisions under applicable Double Taxation Avoidance Agreements (DTAA)

*** Such distributions shall not be taxable in the hands of Unitholders till the cumulative amount of such distributions exceeds issue price of Unit (refer Section 56(2)(x) of the Income Tax Act 1961) and shall be reduced from the cost of acquisition as per Section 48 of the Income Tax Act 1961

++ Tax rates are subject to applicable surcharge and cess

Note: The taxability of dividend income from the REIT depends on the taxation regime chosen by distributing SPV(s). If the SPV has opted for the concessional corporate tax rate under Section 115BAA of the Income Tax Act (qualifying SPV), the dividend qualifies as Qualified Dividend and is exempt from tax for unitholders. Any other dividend is a Disqualified Dividend and is taxable in the hands of unitholders.

Human Resources

We remain committed to fostering a diverse, inclusive, and people-centric ecosystem that prioritises the wellbeing of employees, tenants, and the broader community. Our continued focus on building an empowering workplace culture has earned us the ‘Great Place to Work certification for the 5th consecutive year, reflecting our sustained efforts to create an environment where individuals can thrive. To further strengthen this culture, we continue to advance inclusion and employee engagement through structured initiatives such as the SHEROES leadership programme, the WeCare platform, and the Pride Side Policy, which promote diversity, equity, and equal opportunity across the organisation. These initiatives are complemented by ESG awareness programmes and organisation-wide engagement efforts that reinforce responsible practices while strengthening alignment with our sustainability goals. Our progress is also reflected in improved diversity metrics, including increased representation of women in leadership roles. At the same time, employee wellbeing remains central to our philosophy. Initiatives such as Reach Out provide access to mental health and wellbeing resources, ensuring employees are supported both professionally and personally. In parallel, we continue to enhance tenant and employee experiences across our business parks through curated engagement programmes, cultural events, and the introduction of vibrant social and recreational infrastructure. The development of premium experience centres, lifestyle amenities, and community-focused spaces further reflects our commitment to creating dynamic, experience-driven workplaces that support collaboration, wellbeing, and productivity. Through these ongoing and evolving initiatives, we are strengthening our position as an employer and partner of choice while fostering a future-ready ecosystem that supports sustainable growth and long-term value creation.

Internal Control Systems

At Mindspace, we have established robust internal control systems aligned with the scale, complexity, and nature of our operations. These systems enable effective management of business processes, financial reporting, and regulatory compliance, while providing reasonable assurance on the accuracy and reliability of financial and operational information. In doing so, they help prevent fraud, safeguard assets, ensure proper authorisation of transactions, and maintain adherence to internal policies and applicable laws. To reinforce this framework, roles and responsibilities across functions are clearly defined, ensuring accountability and compliance with regulatory and internal requirements. The leadership team periodically reviews these systems, while process owners implement timely corrective actions to strengthen controls and drive continuous improvement. Further strengthening our governance framework, our statutory auditors, Deloitte Haskins & Sells LLP have audited the financial statements of each Asset SPV as of March 31, 2026. They issued an unqualified opinion on the effectiveness of internal controls over financial reporting, reaffirming our commitment to strong governance, transparency, and operational discipline.