Pansari Developers Ltd Management Discussions

INDUSTRY TRENDS & DEVELOPMENT

a) Global Economic Environment

The global macroeconomic landscape in FY 2025-26 remained volatile, driven by persistent geopolitical tensions, trade disruptions, and tighter financial conditions across several major economies. According to the International Monetary Fund (IMF), forecasts project global economic growth to slow to 3.0% in 2026 before picking up to 3.4% in 2027. Meanwhile, global headline inflation is expected to hit 4.7% in 2026 before cooling down to 3.9% in 2027. These global headwinds have had indirect implications on capital flows, input costs, and investor sentiment in emerging markets, including India.

b) Indian Economic Overview

Decisive domestic strengths have enabled India to maintain robust macroeconomic fundamentals despite global uncertainty. According to official Ministry of Statistics and Programme Implementation (MoSPI) data, Indias real GDP grew by 7.1% in FY 2024-25 and expanded at 7.7% in FY 2025-26, driven by resilient services and secondary sectors. The Reserve Bank of India (RBI) noted anchored inflation expectations and a steady financial framework, maintaining a policy stance aimed at sustaining growth momentum. In its latest updates, the International Monetary Fund (IMF) projects Indias GDP to grow at 6.4% in FY 2026-27 and 6.7% in FY 2027-28, reaffirming its position as the fastest-growing major economy in the world.

BUSINESS OVERVIEW

The real estate sector remains one of the most globally recognized economic pillars. In India, real estate is the second-largest employer after agriculture, employing over 70 million workforce members, and is expected to reach Rs. 95.31 Lakh Crore / US1trillionby2030,up from Rs.15.241 Lakh Crore/US1 trillion by 2030, up from Rs.15.241 Lakh Crore/US 200 billion in 2021, it is projected to contribute 13% to the countrys GDP by 2025. Ranking third among fourteen major economic sectors in terms of direct, indirect, and induced multiplier effects, the construction and real estate ecosystem drives extensive industrial backward and forward linkages.

The real estate sector in West Bengal is steadily expanding, driven by rising urbanization, growing housing demand, and increasing industrial and commercial activities. The market is primarily focused on affordable to mid-segment housing, with a gradual rise in demand for modern, premium residential spaces. Improved infrastructure, supportive government policies, and faster project approvals have made the state an attractive destination for real estate investment. Sustainable and eco-friendly developments are gaining attention, reflecting evolving consumer preferences. The sector is also witnessing growth in suburban areas, supported by increasing connectivity. Overall, West Bengals real estate market offers stable, long-term growth opportunities across segments.

FUTURE OUTLOOK

The company is exploring at growth opportunities, our residential portfolio currently covers projects catering to customers across all income groups. We believe that we have established a successful track record in the real estate industry in Kolkata, West Bengal by developing versatile projects through our focus on innovative architecture, strong project execution and quality construction.

OUR STRENGTH

- Strong presence in Kolkata.

- Well known brand image and reputation.

- Focus on quality construction.

- Well qualified and experienced management team.

- Cordial relationship between management and labour.

OPPORTUNITIES & THREATS

Our company expects demands from the mid income and affordable residential segment to improve as we believe there is significant demand in this category across the country. There is a strong upturn in the commercial real estate sector also.

Unfavorable changes in government policies and the regulatory environment can adversely impact the performance of the sector. There are substantial procedural delays with regards to land acquisition, land use, project launches and construction approvals. Retrospective policy changes and regulatory bottlenecks may impact profitability and affect the attractiveness of the sector and companies operating within the sector.

OUTLOOK

a) Real Estate Sector Outlook

The Indian real estate sector continues to demonstrate sustained expansion, on track to reach a market size of $1 trillion by 2030 and contribute 13% to national GDP. This growth is anchored by robust absorption across residential and commercial segments in Tier-I and Tier-II markets, fueled by rapid urban migration, rising real disposable incomes, and institutional shift toward branded, organized developers. Macro policy incentives, including the PMAY-Urban 2.0 scheme and rationalized GST structures, have further buoyed housing affordability and credit flow.

In particular, the eastern region of India, including Kolkata, has seen rising demand for integrated residential townships, mid-segment housing, and commercial real estate. Regulatory reforms such as RERA and the GST framework have enhanced transparency, buyer confidence, and formalization within the sector.

b) Company Outlook – Pansari Developers Limited

Your Company continues to align its strategic vision with macroeconomic trends and evolving consumer preferences. The Company remains focused on delivering value through its "PURTI" branded developments, ensuring quality construction, timely delivery, and customer-centric solutions. With a robust pipeline of residential and commercial projects in Kolkata and surrounding areas, the Company is well-positioned to leverage upcoming growth opportunities in the eastern real estate corridor.

The management remains cautiously optimistic while maintaining operational agility in navigating external risks, including material cost volatility and evolving regulatory dynamics.

INTERNAL FINANCIAL CONTROL SYSTEM AND THEIR ADEQUACY

The Companies Act, 2013 re-emphasizes the need for an effective Internal Financial Control system in the company. The scope of work for Internal Auditors, which is reviewed and expanded as required, addresses issues related to internal control systems particularly those related to regulatory compliance. Pre-audit and post-audit checks and reviews ensure that audit observations are acted upon. Audit Committee of the Board of Directors reviews the Internal Audit Reports and adequacy of internal controls.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The following review are intended to convey Managements perspective on the financial and operating performance of the Company during the Financial Year 2025-26. This Report should be read in conjunction with the Companys financial statements and other information included in this Annual Report.

The Company has recorded very satisfactory performance during the Financial Year 2025-26 on Standalone basis. Below is a brief quantitative overview of the financial and operational performance of your Company during the reporting period.

A. Standalone Results:

The Company has recorded a satisfactory performance during the year under review. The total income is Rs. 11,359.51 Lakhs as against total income of Rs. 4,104.80 Lakhs in the previous year. The Profit before depreciation and tax is Rs. 2797.58 Lakhs. After providing for depreciation of Rs. 243.82 Lakhs and tax of Rs. 592.14 Lakhs, the Net Profit is Rs. 1,961.62 Lakhs as against Rs. 750.12 Lakhs in the previous year.

B. Consolidated Results:

On the consolidated front, the Company has received during the year. The total income is Rs. 11,428.20 Lakhs as against total income of Rs. 4,484.32 Lakhs in the previous year. The Consolidated Profit before depreciation and tax is Rs. 2849.26 Lakhs. After providing for depreciation of Rs. 244.11 Lakhs and tax of Rs. 616.17 Lakhs. The Consolidated Net Profit is Rs. 1,988.99 Lakhs as against Rs. 750.09 Lakhs in the previous year.