MPDL Ltd Management Discussions

The Management of MPDL LIMITED is pleased to present its analysis report on its performance and future outlook.

1. GLOBAL ECONOMY

During FY 2025-26, the global economy continued to witness moderate growth despite geopolitical uncertainties, inflationary pressures and evolving trade dynamics across major economies. While economic growth remained uneven across regions, easing inflation and improving financial conditions supported overall global economic activity. However, uncertainties arising from geopolitical developments and fluctuations in commodity prices continued to pose challenges to global growth.

2. INDIAN ECONOMY

India continued to remain one of the fastest-growing major economies during FY 2025-26, supported by strong domestic demand, Government-led infrastructure development, policy reforms and increasing investments. Continued focus on urbanisation, digital transformation, manufacturing and infrastructure development contributed positively to economic growth and provided a favourable environment for various sectors including real estate.

The continued emphasis of the Government on infrastructure development, urban expansion and ease of doing business has supported growth across various sectors. Increased investments in commercial infrastructure and improving business sentiment have contributed positively towards demand for quality commercial real estate assets in key urban markets.

3. INDUSTRY OVERVIEW

Industry Structure and Developments

The Indian real estate sector continues to be one of the significant contributors to the countrys economic growth and employment generation. The sector has witnessed steady progress supported by urbanisation, infrastructure development, increasing demand for quality commercial and residential spaces and favourable Government initiatives.

Regulatory reforms including the Real Estate (Regulation and Development) Act, 2016 (RERA), implementation of Goods and Services Tax (GST) and increased transparency have strengthened the sector and improved investor confidence. The commercial real estate segment continued to witness stable demand, supported by business expansion, infrastructure development and increasing preference for quality commercial spaces.

The National Capital Region (NCR), where the Company has its presence, continued to witness demand for commercial real estate supported by infrastructure development, improved connectivity and increasing business activity. The commercial office and mixed-use development segments are expected to benefit from long-term economic growth and urbanisation trends.

The long-term outlook for the Indian real estate sector continues to remain positive, supported by favourable demographics, infrastructure growth and continued economic development.

4. BUSINESS OVERVIEW

MPDL Limited is engaged in the business of real estate development. During the financial year under review, the Company continued to focus on completion and operational readiness of its commercial real estate project and efficient management of its business operations.

The Company continued to focus on completion and operational readiness of its flagship commercial project, M1 Tower, Faridabad. The Company received the Fire No Objection Certificate (NOC) on December 19, 2025 and the Occupancy Certificate on March 30, 2026, marking significant milestones towards operational readiness of the project. Subsequently, the Company received the Consent to Operate on July 1, 2026. The Final Completion Certificate is presently awaited from the concerned authorities. These developments are expected to facilitate the operationalisation of the project and strengthen the Companys revenue-generating capabilities.

The Company remains committed to strengthening its business, improving operational efficiencies and creating sustainable value for all stakeholders through prudent business decisions and efficient operational practices.

5. OPPORTUNITIES AND THREATS

Opportunities and Outlook

The Indian real estate sector continues to offer long-term growth opportunities driven by:

- Rapid urbanisation;

- Continued infrastructure development;

- Government initiatives supporting the real estate sector;

- Increasing demand for quality commercial developments;

- Improving ease of doing business; and

- Growing investor confidence.

The Company remains focused on strengthening its existing business, improving operational efficiencies and exploring suitable opportunities for sustainable growth.

Threats, risks and concerns

The Companys business is exposed to various risks including changes in economic conditions, Government policies, regulatory requirements, market demand, interest rate movements, competition, fluctuations in construction costs and delays in statutory approvals.

The Company has established an appropriate risk management framework supported by adequate internal control systems to identify, assess, monitor and mitigate business risks. The Board of Directors periodically reviews key business risks and the effectiveness of the mitigation measures adopted by the Company.

6. SEGMENT WISE PERFORMANCE

The Company operates in a single reportable business segment, namely Real Estate Development. Accordingly, there are no separate reportable business segments in accordance with the applicable Indian Accounting Standards (Ind AS).

The financial highlights are as under:

7. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the financial year ended March 31, 2026, the Companys standalone total revenue stood at Rs3,109.13 lakh as compared to Rs676.98 lakh during the previous financial year. The Company reported a Loss Before Tax of Rs868.23 lakh during FY 2025-26 as against a loss of Rs391.59 lakh during the previous financial year.

During the year under review, the Company continued its efforts towards operational readiness of its commercial project. The Occupancy Certificate for the Companys commercial project was received during the financial year, which marked an important milestone towards commencement of operations.

The management continues to focus on improving operational efficiencies, optimum utilisation of available resources and strengthening the Companys financial position.

8. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has adequate Internal Financial Controls ("IFC") and an effective internal control framework commensurate with the size, scale and complexity of its operations. The internal control framework is designed to ensure orderly and efficient conduct of business, safeguarding of assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records and timely preparation of reliable financial information. All efforts are being made to make the internal control systems more effective.

9. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

The Company acknowledges that human capital is a key driver of success, particularly in the real estate sector. It is committed to fostering a work environment that promotes productivity, innovation, and employee well-being. The Company ensures that its employees are provided with a conducive working environment, along with competitive remuneration and opportunities for professional growth.

Employees are encouraged to take initiative, be innovative, and align their individual goals with the broader objectives of the Company.

As the scale of operations remains moderate, the total number of employees on the rolls of the Company as on March 31, 2026, stood at Eight (8).

10. DETAILS OF SIGNIFICANT CHANGES (i.e. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THEREFOR, INCLUDING

During the financial year 2025-26, there are some significant changes in key financial ratios as compared to previous financial year. The Key financial ratios have been shown below:

11. DISCLOSURE OF ACCOUNTING TREATMENT

The financial statements have been prepared in accordance with the Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules, as amended from time to time, and other generally accepted accounting principles in India. There has been no change in the accounting treatment during the financial year.

12. CAUTIONARY STATEMENT

Certain statements made in the management discussion and analysis report relating to the Companys objectives, projections, outlook, expectations, estimates and others may constitute ‘forward looking statements within the meaning of applicable laws and regulations. Actual results may differ from such expectations whether expressed or implied. Several factors could make significant difference to the Companys operations. These include climatic and economic conditions affecting demand and supply, government regulations and taxation, natural calamities over which the Company does not have any direct control.