Oswal Green Tech Ltd Management Discussions

Global Economic Overview

The global economy demonstrated cautious resilience during FY 2025-26, navigating a landscape shaped by evolving trade policies, elevated tariff regimes, and gradually easing financial conditions. Advanced economies saw a modest pickup in growth, aided by monetary policy easing and fiscal support in key jurisdictions, while emerging market and developing economies continued to outpace their advanced- economy counterparts, though growth in several emerging markets moderated amid commodity dependence, geographic exposure, and sensitivity to global financial conditions.

The International Monetary Fund projected global GDP growth to remain broadly stable through the year, with global growth holding at around 3.3 percent, similar to the prior years outturn, on the back of resilient activity in major economies. The United States economy was supported by fiscal policy measures and a lower policy rate, even as the effects of higher trade barriers gradually receded, while central banks, including the US Federal Reserve, moved toward a more accommodative stance as inflationary pressures continued to ease, though price levels in some economies remained above target.

Improved financial conditions and de-escalation of certain trade tensions provided relief to global markets during the year. However, risks remained tilted to the downside, with persistent geopolitical conflicts in Eastern Europe and the Middle East, elevated global debt levels, and the possibility of renewed protectionist measures continuing to weigh on sentiment. Volatility in capital flows and currency markets remained a concern for businesses operating in developing economies. Global investor focus on sustainable practices, ESG disclosures, and energy-efficient innovation continued to intensify, reinforcing the shift toward responsible and long-term capital allocation.

Indian Economy Overview

The Indian economy strengthened further in FY 2025-26, reinforcing its position as the fastest growing major economy in the world. As per the Second Advance Estimate released under the revised GDP series (base year 2022-23), real GDP growth for FY 2025-26 is estimated at 7.6%, higher than the 7.1% recorded in FY 2024-25. Domestic consumption showed a broad-based recovery, with private final consumption expenditure quickening significantly, reflecting a strong recovery in both urban and rural demand, aided by the GST 2.0 rationalisation effective September 2025 and steady rural income support.

Credit conditions improved through the year as the RBI eased its policy stance, with a cumulative repo rate reduction of 125 basis points effected over the course of FY 2025-26. Growth was supported by a manufacturing sector that expanded strongly, while the services sector, comprising trade, hotels, transport and communication, also accelerated sharply over the previous fiscal. Agricultural growth, however, moderated relative to the previous year, reflecting continuing climate-linked variability.

External balances remained comfortable, with the current account deficit staying contained through the first half of the year. The half-yearly current account deficit narrowed to USD 15.0 billion (0.8% of GDP), from USD 25.3 billion (1.3% of GDP) a year earlier, supported by a strong rise in net invisibles. Services exports remained resilient, with the services trade surplus rising on the back of growth across computer and business services categories, alongside a sharp pickup in inward remittances.

Inflation remained benign for most of the year, with full-year average CPI inflation coming in at around 2.1%, the lowest since the current series began, driven primarily by a sustained decline in food prices. However, price pressures edged higher in early 2026 amid rising energy costs linked to geopolitical tensions in West Asia. The Reserve Bank of India maintained a neutral policy stance, holding the repo rate steady at 5.25% amid a weakening rupee and rising bond yields, as it balanced growth support against emerging external and geopolitical risks.

Industry review

Real estate continued to be one of the most closely tracked sectors globally, with its performance closely mirroring the broader health of the corporate and investment environment. The Indian real estate sector sustained its strong momentum through FY 2025-26, building on the highs of the previous year, with continued resilience across residential, commercial, and industrial segments despite pockets of consolidation.

The office leasing segment remained a standout performer, with the office market closing 2025 with annual volumes breaking prior record levels to reach 86.4 million sq ft, a 20% increase over 2024 and 43% above the pre-pandemic peak, led by continued expansion of Global Capability Centres. CRISIL projected net leasing of Grade A office space to cross 50 million sq ft by FY26, translating into a 7-9% CAGR through FY27, aided by declining work-from-home adoption. The industrial and warehousing segment maintained its growth trajectory, supported by manufacturing expansion, logistics modernization, and continued e-commerce demand.

Residential real estate delivered one of its strongest first-half performances in over a decade before entering a phase of consolidation. Total housing sales value across top cities was expected to exceed Rs. 6.65 lakh crore in FY26, up from about Rs. 5.59 lakh crore in FY25, with luxury housing continuing to outperform amid sustained demand from aspirational and HNI buyers.

The commercial real estate segment saw accelerating institutionalization and diversification, with 2025 institutional investments surpassing USD 7.5 billion, an all-time high, and data centres emerging as a dominant asset class, attracting 38% of private equity inflows into Indian real estate in Q2 2026, overtaking office assets for the first time. The introduction of SM REITs was expected to unlock a monetisation opportunity of Rs. 67,000-71,000 crore, reinforcing the sectors shift toward broader, tech-enabled ownership structures.

Overall, the FY 2025-26 real estate landscape was marked by sustained institutional capital, sectoral diversification, and continued strength in commercial and industrial segments even as residential demand moderated. For Oswal Greentech Limited, engaged directly in the real estate business, this environment offers continued opportunities across commercial, industrial, and emerging alternative asset classes, supported by robust capital flows, institutionalization trends, and policy-led tailwinds

Opportunities

Continued government support for affordable housing and infrastructure development presents significant growth opportunities. Strong GDP growth projections and potential interest rate cuts are expected to further boost demand in the real estate sector. Increasing urbanization and favourable demographic trends provide a steady demand for residential and commercial properties.

Challenges

While the management of your Company is confident of creating and exploiting the opportunities, it finds the following challenges:

• Unanticipated delays in project approvals;

• Regulatory hurdles;

• Availability of accomplished and trained labour force;

• Monetary tightening and funding issues;

• Increased cost of manpower;

• Rising cost of construction lead by increase in commodity prices.

Performance overview

The Company is primarily engaged in the business of real estate development and construction activities.

The Company flagship residential development at Ludhiana continues to demonstrate strong end-user traction, with 513 of the 538 flats in the project sold as on 31st March, 2026. This sustained absorption reflects the projects design quality, strategic location, and competitive pricing, reinforced by the Companys disciplined sales execution and a consistently positive response from homebuyers in the region.

The near-complete sell-out of this project is a strong validation of the Company real estate strategy and its ability to convert market demand into tangible bookings, even amid evolving macroeconomic conditions in the housing sector.

With only a limited number of units now remaining, the Company expects to conclude sales of this project in the near term and is confident that the remaining flats will be absorbed swiftly, supported by continued interest from prospective buyers. The successful execution of this project strengthens the Company track record in the residential real estate segment and provides a strong foundation for identifying and pursuing similar opportunities going forward.

Other Income:

During the year, the Company has also received income from interest on Inter-Corporate deposits (ICDs) and investments in mutual funds. The financial performance highlights for the year ended 31st March, 2026, are as follows

The net income from operations achieved during the year is Rs. 3,680.69 lakh as compared to Rs. 3,525.26 lakh in the previous year. The net loss is Rs. 6,241.86 lakh as compared to profit after tax Rs. 853.21 lakh in the previous year.

Discussion on financial performance with respect to operational performance:

During the financial year 2025-26, the Companys financial performance was adversely impacted, with the Company reporting a net loss of Rs. 6,241.86 lakhs, as against a profit after tax of Rs. 853.21 lakhs in the previous financial year. This loss was primarily on account of a provision made towards non-repayment of principal and/or interest of Inter-Corporate Deposits (ICDs) and Real estate advance, undertaken as a matter of prudence in view of the uncertainty surrounding recoverability of the said amounts. Barring this exceptional provisioning impact, the Companys core operational performance remained largely stable, and the management continues to pursue all available legal and recovery options to realise the amounts due. The Company witnessed better sales velocity and healthy collections across key developments, contributing to improved cash flows. Cost optimization initiatives and prudent resource allocation resulted in higher EBITDA margins during the year. Operational performance was further supported by a strong demand environment, especially in the residential and commercial segments. The companys focused approach to project management, cost control, and sales execution translated directly into financial gains. Overall, the operational achievements during FY 2025-26 laid a robust foundation for continued profitability and sustainable growth.

Risks & concerns

The Company is exposed to specific risks that are particular to its businesses and the environment within which it operates, including inter alia, market risk, competition risk, human resource risk, execution risk and significant downturn in the economic cycle. The company has a comprehensive risk management framework to identify, assess, and mitigate potential risks. Regular monitoring and review of risk factors ensure timely interventions and strategic adjustments to safeguard our interests.

Human resource

Human resource is considered as key to the future growth strategy of the Company and looks upon to focus its efforts to further align human resource policies, processes and initiatives to meet its business needs. The Company has been very proactive to support all its

workforce at all the levels in best possible manner. The Company has a continuous process to monitor individual performance. The Company continued to have cordial and harmonious relations with its employees. Training programs, performance incentives, and a conducive work environment are integral to our HR strategy, aimed at fostering a motivated and skilled workforce.

Internal Control Systems and their adequacy

The Company has implemented an internal control framework to ensure all assets are safeguarded and protected against loss from unauthorised use or disposition and transactions are authorised, recorded and reported correctly. The framework includes internal controls over financial reporting, which ensures the integrity of financial statements of the Company and reduces the possibility of frauds.

The Audit Committee of the Board reviews the design of key processes from the point of view of adequacy of controls. The internal controls are tested for effectiveness, across all our projects and functions by the finance department, which is further reviewed by the management of the company from time to time, for corrective action.

Outlook

The outlook for the real estate sector remains optimistic, with anticipated growth in both residential and commercial segments. The company aims to leverage market opportunities through strategic project launches, enhanced customer service, and sustainable development practices. Continued focus on financial discipline and operational excellence will be key to maintaining growth momentum and delivering value to our stakeholders.

Key financial ratios

A comparative table showing a synopsis of the financial year 2025-26 vs. 2024-25 of Key Financial Ratios is provided below:

Risk Management

The Company follows well-established and detailed risk assessment and minimization procedures, which are periodically reviewed by the Board.

The Company takes a very structured approach to the identification and quantification of each risk and has a comprehensive board- approved risk management policy. The scope of the Audit Committee includes review of the Companys financial and risk management policies. The Audit Committee reviews the Audit reports covering operational, financial and other business risk areas.

Disclosure of accounting treatment

The standalone financial statements for the year ended 31st March, 2026 have been prepared and presented on a going concern basis under the historical cost convention (except for certain financial instruments which are measured at fair values), on the accrual basis of accounting and comply with the Indian Accounting Standards prescribed by Section 133 of the Companies Act, 2013 (‘the Act) read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued thereafter, other pronouncements of the Institute of Chartered Accountants of India, guidelines issued by Securities and exchange board of India (SEBI) and the relevant provisions of the Companies Act, 2013 (to the extent notified)/Companies Act, 1956.

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or are vision to an existing accounting standard requires a change in the accounting policy hitherto in use.

Cautionary Statement

The statements in the Management Discussion and Analysis Report, which may be considered ‘forward-looking statements, within the meaning of applicable laws and regulations, have been based upon the current expectations and projection about future events. The actual results could differ from those expressed or implied. Important factors that could influence the Companys operations include global geopolitical shifts, economic developments within the country, demand and supply conditions in the industry, input prices, changes in Government regulations, tax laws and other factors such as industrial relations. The management cannot, however, guarantee that these forward-looking statements will be realised or achieved.