Nyssa Corporation Ltd Management Discussions

ANNUAL OVERVIEW AND OUTLOOK

According to the second advance estimates, Indias real GDP growth for FY26 is estimated at 7.6%, surpassing previous projections. This growth is anchored in a robust manufacturing performance and resilient domestic demand despite external headwinds like geopolitical tensions in West Asia and tariff concerns. The economy showed strong momentum through the first three quarters of FY26, with a slight moderation expected in the final quarter due to the Middle East conflict and an unfavourable statistical base. The manufacturing sector maintained double-digit growth for five consecutive quarters as of Q3FY26, bolstered by inventory stocking and GST rationalisation. Services sector reached a seven-quarter high of 9.5% in Q3FY26. Growth was led by Financial, Real Estate & Professional Services and Trade, Hotels, and Transport. Growth in the Agriculture and allied sector moderated to a seven-quarter low of 1.4% in Q3FY26, partly due to unfavourable base effects and weather disruptions like unseasonal rainfall.

Headline inflation plummeted to an average of ~2.1% for FY26 (vs. 4.6% in FY25), driven by a prolonged nine-month decline in food prices and a favourable monsoon. Core inflation (excluding gold) remained stable at around 2.6%, indicating that the underlying price pressures were well-contained. The RBI delivered one of the sharpest easing cycles in recent history, cutting policy rates by a full percentage point within four months starting in February, 2025. The RBI delivered another rate cut of 25 basis points in December, 2025, even as macroeconomic fundamentals strengthened, signalling its commitment to sustain domestic demand through 2026 amid global uncertainty.

On the fiscal front, the Central Government is set to narrow its fiscal gap to 4.4% of GDP for FY26 compared to 4.8% in FY25. During

Apr-Jan FY26, fiscal deficit stood at 9.8 lakh Cr, representing 63% of the budget estimate. Significant tax reforms in

FY26 (personal income tax revisions and GST rationalisation) had a revenue-reducing effect, with an estimated tax revenue shortfall of 1.9 lakh Cr in FY26 (RE), which was balanced by higher non-tax revenue and expenditure adjustments.

Foreign direct investment (FDI) into India grew by 18% year-on-year to US$47.87 Bn during April-December, FY26, with inflows from the US nearly doubling to US$7.8 Bn during this period. Foreign portfolio investment (FPI) outflows were about US$16.4 Bn (up to March 25, 2026), highest ever in any financial year. Such investment withdrawals contributed significantly to currency depreciation with the Indian Rupee breaching the 94 per US dollar mark in late March 2026. Despite RBIs interventions in the forex market to contain rupee volatility, Indias foreign exchange reserves at US$710 Bn are adequate to cover for more than 11 months of imports.

INDUSTRY OVERVIEW

Capital Market

The Indian capital markets entered a phase of democratisation and structural maturity in FY26, marked by healthy retail participation. Geopolitical tensions and shifts in global trade policies acted as re-tractive forces, leading to a muted domestic equity market performance of -5.1% and -7.1% for the Nifty 50 and BSE Sensex respectively. Domestic Institutional Investors (DIIs) (DMF + Banks, FI and Insurance) ownership in NSE listed universe of companies increased to 16.6% as of December 2025, at par with foreign portfolio investment (FPI) holdings, underscoring the growing influence of domestic investors in Indias equity markets and the shift toward local capital as a primary stabilising force amid negative FPI flows.

The primary equity market remained buoyant in FY26, with India emerging as one of the most active initial public offering (IPO) markets globally. Companies raised over €770 billion of fresh capital through IPOs, on both mainboard and SME, during the first eleven months of the fiscal year, higher by more than 15% over the previous year. Following the trend in FY25, the industry continued to witness high share of Offer for Sale (OFS) in the current financial year as well, at over C1 trillion, accounting for over 57% of capital raised through IPOs, reflecting a supportive environment for shareholder exits and enhanced secondary market liquidity. The country witnessed 8.1% Y-o-Y growth in the number of issuances to 346 in the first eleven months of FY26 with mainboard number of listings growing by 26.6% Y-o-Y to 100. SME listings also maintained strong momentum, with 246 companies raising over €111 billion during the first eleven months of FY26, underscoring the growing depth and maturity of Indias primary market ecosystem for emerging enterprises.

Realty Segment

The Indian construction market size is estimated at USD 0.79 trillion in 2026, and is expected to reach USD 1.10 trillion by 2031, at a CAGR of 6.87% during the estimated period (2026-2031), underpinned by front-loaded public spending and deepening private capital pools. Accelerated highway contract awards, renewable-energy buildouts, and rapid data-centre expansion continue to anchor order books for large engineering, procurement, and construction (EPC) firms.

On the demand side, Tier-2 and Tier-3 cities are capturing a larger slice of metro-rail and water-infrastructure allocations, broadening the geographic base of activity. Sharper adoption of modular building systems, digital-twin modelling, and green-building retrofits is lifting productivity and helping contractors offset margin pressure from volatile bitumen and rebar prices. Meanwhile, ESG-linked lending thresholds introduced by the Reserve Bank of India are nudging mid-tier players toward tighter emissions reporting and recycled-material use, reshaping procurement strategies.

OPPORTUNITIES & THREATS

Capital Market

Indian equities have transitioned from a phase of sustained outperformance to one of correction and recalibration. Following several years of strong returns and valuation expansion, the market entered a period of adjustment in 2025–26. Foreign outflows, elevated valuations and sectoral earnings moderation contributed to underperformance relative to global peers. The correction has been broad-based, particularly in segments where valuations had become stretched. This phase is best understood as a reset rather than a reversal. Valuation have narrowed, sector leadership has rotated, and forward returns are increasingly tied to earnings rather than multiple expansion.

The sharp underperformance of Indian equities since 2025 has largely been a valuation and positioning reset after years of outperformance, not a fundamental break in the story. Multiple years of high returns left pockets of the market expensive just as global rates stayed elevated and capital rotated towards AI-centric and developed markets, triggering sustained FPI selling even as domestic investors kept buying. With this correction, valuation over global peers have compressed and FPI ownership in Indian equities has fallen, reducing crowding risk and improving the medium term risk–reward for new capital.

Looking ahead, the equity outlook hinges on a still robust macro backdrop-fastest-growing major economy, low and stable inflation, healthy bank and corporate balance sheets—and on the breadth of earnings growth beyond a handful of sectors. Services exports and public capex continue to underpin aggregate demand, while rising domestic financialization provides a sticky source of equity demand that can partly offset foreign risk-off phases.

Realty Segment

Opportunities:

Indias housing demand is gaining momentum due to rapid urbanisation, shifting demographics towards nuclear families, rising aspirations and an expanding pool of first-time buyers. The demand outlook remains strong, aided by economic recovery, accommodative mortgage rates, price stability and growth in household incomes.

The government continues to play a significant role in supporting the housing sector through focused policy initiatives such as the Pradhan Mantri Awas Yojana (PMAY) and the Housing for All mission. In addition, schemes such as the Credit Linked Subsidy Scheme (CLSS) under PMAY, the Affordable Rental Housing Complexes (ARHC) scheme for urban migrants, and the Pradhan Mantri Gramin Awaas Yojana (PMGAY) for rural housing have expanded access to affordable housing across income segments. Urban development initiatives like the Smart Cities Mission, Atal Mission for Rejuvenation and Urban Transformation (AMRUT), and the Swachh Bharat Mission (Urban) further strengthen supporting infrastructure such as water supply, sanitation, and urban mobility, making housing projects more viable and sustainable. Additionally, government incentives such as infrastructure status to affordable housing, interest subvention schemes, and tax benefits for developers and homebuyers have improved financing access and boosted private sector participation.

Challenges:

Frequent policy updates, evolving compliance norms, and delays in land acquisition and statutory approvals can extend project timelines and increase holding costs.

Natural disasters, pandemics, and macroeconomic disruptions can interrupt construction activity, disrupt supply chains, and weaken demand sentiment.

Milestone-based payments, extended receivable cycles, and retention clauses create uneven cash flows, increasing dependence on short-term borrowings and raising finance costs.

Lower adoption of advanced construction technologies such as BIM, prefabrication, and digital project management tools can lead to inefficiencies, rework, and margin pressures.

Volatility in steel, cement, fuel, and other raw material prices—driven by global commodity cycles and currency fluctuations—can compress margins, particularly in fixed-price contracts.

RISKS AND CONCERNS

Nyssa Corporation Ltd. (NCL) has exposures in various line of business. NCL are exposed to specific risks that are particular to their respective businesses and the environments within which they operate, including market risk, competition risk, credit risk, liquidity and interest rate risk, operational risk, information security risks, regulatory risk and macro-economic risks. The level and degree of each risk varies depending upon the nature of activity undertaken by them.

MARKET RISK

The Company has quoted investments which are exposed to fluctuations in stock prices. NCL continuously monitors market exposure in equity and, in appropriate cases, also uses various derivative instruments as a hedging mechanism to limit volatility.

LIQUIDITY AND INTEREST RATE RISK

The Company is exposed to liquidity risk principally, because of lending and investment for periods which may differ from those of its funding sources. Management team actively manages asset liability positions in accordance with the overall guidelines laid down by various regulators. The Company may be impacted by volatility in interest rates in India which could cause its margins to decline and profitability to shrink. The success of the Companys business depends significantly on interest income from its operations. It is exposed to interest rate risk, both as a result of lending at fixed interest rates and for reset periods which may differ from those of its funding sources. Interest rates are highly sensitive to many factors beyond the Companys control, including the monetary policies of the RBI, deregulation of the financial sector in India, domestic and international economic and political conditions and, inflation. As a result, interest rates in India have historically experienced a relatively high degree of volatility.

The Company seeks to match its interest rate positions of assets and liabilities to minimize interest rate risk. However, there can be no assurance that significant interest rate movements will not have an adverse effect on its financial position.

HUMAN RESOURCE DEVELOPMENT

The Company recognizes that its success is deeply embedded in the success of its human capital. During 2025-26, the Company continued to strengthen its HR processes in line with its objective of creating an inspired workforce. The employee engagement initiatives included placing greater emphasis on learning and development, launching leadership development programme, introducing internal communication, providing opportunities to staff to seek inspirational roles through internal job postings, streamlining the Performance Management System, making the compensation structure more competitive and streamlining the performance-link rewards and incentives.

CORPORATE SOCIAL RESPONSIBILITY INITIATIVES

The provision of the Companies Act, 2013 relating to CSR Initiatives are not applicable to the Company.

COMPLIANCE

The Compliance function of the Company is responsible for independently ensuring that operating and business units comply with regulatory and internal guidelines. The Compliance Department of the Company continues to play a pivotal role in ensuring implementation of compliance functions in accordance with the directives issued by regulators, the Companys Board of Directors and the Companys Compliance Policy. The Audit Committee of the Board reviews the performance of the Compliance Department and the status of compliance with regulatory/internal guidelines on a periodic basis.

The Company has complied with all requirements of regulatory authorities. No penalties/strictures were imposed on the Company by stock exchanges or SEBI or any statutory authority on any matter related to capital market during the last three years.

Mumbai, July 14, 2026	By order of the Board
	For Nyssa Corporation Limited
	S/d-
Registered Office:	Sandeep Gaur
002, Gulmohar Complex, Opp.	DIN: 05284870
Anupam Cinema, Station Road,	Whole-time Director
Goregaon (E), Mumbai \u2013 400 063