Parsvnath Developers Ltd Management Discussions

1. MACRO-ECONOMY OVERVIEW a. Global Economy

The World Banks Global Economic Prospects report of June 2025 highlights that the global economy is facing a challenging period. In 2024, the world economy grew at a pace of 2.8%, which is similar to 2023 but slower than 2022. However, this growth was expected to weaken further; it is projected to be the weakest since 2008, not counting major recessions. The world economy is expected to slow to 2.3% in 2025, with only a modest recovery in 2026 (2.4%) and 2027 (2.6%). This slowdown is mainly caused by rising trade tensions and deglobalisation, wars and geopolitical conflicts, and a lot of uncertainty in global policies. This has led to expected deceleration for most countries relative to 2024.

The performance of major economic groups also shows the same picture. Advanced economies are expected to see a decrease in growth, from an estimated 1.7% in 2024 to 1.2% in 2025. The Emerging Market and Developing Economies (EMDEs) are also facing a similarly tough outlook. Their growth forecasts for 2025 have been lowered, with overall growth expected to average 3.8%, down from 4.2% in 2024. The growth is projected to remain the same in 2026 and increase slightly to 3.9% in 2027. This slower growth means that these developing economies will have a harder time catching up to advanced economies and reducing poverty.

The Central Banks, especially in major economies, actively raised interest rates to combat high inflation in the previous years. These efforts succeeded, and the global headline inflation (GDP-weighted average) is still expected to continue to fall from an estimated 3.2% in 2024 to 2.9% in 2025. However, these levels remain above the pre-pandemic averages, with the easing in core inflation being slower than expected. There is, however, significant divergence in the scenarios across countries and significant volatility risks because of tari_ wars.

b. Indian Economy

The Indian economys performance in fiscal year 2024-25 saw a notable slowdown but remained strong. As per the provisional estimates from the National Statistics Office (NSO),

Indias real GDP grew by 6.5% year-on-year in FY2024-25, which was a marked decrease from the 9.2% expansion in the previous fiscal year. In nominal terms, the GDP growth was 9.8%. This slower pace was attributed to several factors, including a high base effect, lower government spending in the first half of the year due to national elections, a volatile monsoon, and external challenges like a global manufacturing slump and weaker demand from international trading partners. The Real Gross Value Added (GVA) also slowed, growing at 6.4% compared to 8.6% in the prior fiscal year. Despite the overall slowdown, certain sectors showed strong growth, with Construction leading at 9.4%, followed by Public Administration, Defence & Other Services at 8.9%, and Financial, Real Estate & Professional Services at 7.2%.

Infiation moderated to 4.6% in FY2024-25 from 5.4% in the previous fiscal year, remaining within the Reserve Bank of Indias (RBI) tolerance level. As a result, the RBI adopted a more accommodating monetary policy, cutting the repo rate by a total of 100 basis points between February and June 2025. This move is expected to support economic activity by encouraging increased credit uptake and fixed capital formation. The outlook for FY2025-26, as projected by the RBI, is for a resilient and stable economy, with an expected real GDP growth of 6.5% and inflation at 3.7%.

The Indian economy is expected to remain robust despite ongoing global economic headwinds, geopolitical tensions, and trade uncertainties. This resilience is supported by stable macroeconomic fundamentals, including controlled inflation and deficits, robust private consumption, and a pickup in investment activity driven by improved credit conditions and corporate balance sheets. Additionally, an expected above-normal monsoon is anticipated to benefit the agriculture sector. However, the elevated tari_ regime imposed by the United States is likely to adversely affect not only some of the key export sectors of the economy but also have a downstream effect on wages, consumer demand, and the requirement for commercial spaces. Unless a resolution is found, the elevated tariffs are likely to shave 0.4 – 0.5% of the GDP growth in FY2025-26, and the GDP growth may be closer to 6%. This is the key downside risk to the countrys economic growth.

2. REAL ESTATE SECTOR a. Global Real Estate Market

The global real estate market size was valued at USD 4.12 trillion in 2024. It is estimated to reach USD 4.34 billion in 2025, and grow at a CAGR of 5.5% from thereon till 2034 to touch USD 7.03 trillion based on a report by the Precedence Research. digital economy and changing lifestyles, changes in family structures, rise in single-person households, people delaying marriage, and migration leading to an increase in cultural diversity. These trends create demand for different types of properties, such as those offering flexible work areas, co-working spaces, smaller and more affordable housing, meeting specific cultural needs and preferences, etc. Over the forecast period, it is predicted that the sales type would increase at a CAGR of 6.20%, higher than the average. Luxury homes, villas, and second homes are in more demand as a result of how the COVID-19 pandemic altered consumer attitudes towards home ownership.

The real estate industry is also being reshaped by technology. The use of innovations like blockchain is enhancing the security of transactions, while virtual reality (VR) and augmented reality (AR) are providing immersive virtual tours. Artificial intelligence (AI) is also being integrated to automate various aspects of smart homes. These technological advancements, combined with the convenience of online platforms and mobile apps, are empowering consumers and transforming the entire real estate sector.

b. INDIAN REAL ESTATE SECTOR

The Indian real estate sector in FY2024-25 sustained the momentum that it has gathered since the pandemic, emerging as a key pillar of the nations economic growth story. From FY2029 to FY2025, residential sales in major cities surged 77% clearly demonstrating the robust buyer demand. Similarly, the office leasing segment has also shown strong absorption and growth in rentals on the back of sustained demand from the bellwether commercial estate sectors such as IT/ITeS and new age sectors like eCommerce, co-working, and Global Capability Centres (GCCs) in Tier-1 and Tier-2 cities. Similarly, the Industrial and Warehousing segment also performed well due to the growing e-Commerce industry, expanding manufacturing base in light of the ‘Make In India and Production Linked Incentive (PLI) schemes, and transforming global supply chains. The overall market resilience was supported by policy reforms and increasing demand for A-grade quality, smart, community-focused, and tech-enabled properties.

Government Initiatives for the Real Estate Sector

Housing: The government is promoting affordable housing through the Pradhan Mantri Awas Yojana (PMAY) with new tax deductions and relaxed loan rules. It also lowered property transaction costs by reducing stamp duty, registration fees, and GST to make buying a home more affordable for both buyers and investors.

Commercial Real Estate and REIT Growth: The budget provides tax benefits for investors and developers to encourage investment in REITs (Real Estate Investment Trusts) and rental properties. There is also a renewed focus on co-working hubs and warehousing to reflect modern workplace trends.

Sustainability: The government is promoting eco-friendly construction with financial incentives for green buildings and the use of solar energy. This is part of a broader goal to reduce carbon footprints and support long-term environmental targets.

Infrastructure Development: Significant funds in the Union Budget for 2025-26 were set aside for urban projects like expanding metro networks and the Smart Cities Mission. New industrial and commercial zones are planned to boost commercial real estate, especially for logistics and office spaces.

Digital Integration: The budget emphasizes using technology like blockchain for property registration, digitizing land records, and integrating AI to make property transactions more transparent and efficient.

The Indian Real Estate sector was valued at USD 482 billion in 2024 and projected to grow to USD 550 billion in 2025. It is also projected to grow at a CAGR of 10.5% from 2024 to 2033 and reach a size of USD 1.184 trillion. From a contribution of ~7% to the countrys GDP, the sectors contribution in 2033 will touch 13%. The sector also saw increased investment activity in FY2024-25 with the deal volumes and value rising in comparison to FY2023-24 to touch 99 transactions with a combined value of USD 6.99 billion. The major source of funding remained the Private Equity channel with a total of USD 3.15 billion across 48 transactions.

Indian Real Estate - Housing Market

Broadly, the residential market maintained its upward momentum in FY2024-25; however, the trends varied by price segment. The Affordable Housing segment sales fell, but the unsold inventory has reduced, indicating gradual absorption. Overall growth was limited by fewer new launches and a shift toward the premium housing segment. Despite a_ordability challenges, steady end-user demand helped clear inventory. Key trends in the housing market are:

Premiumization: There was a strong demand for mid-segment and premium housing, with developers shifting their focus to higher-margin projects.

Luxury Growth: There has been a surge in Luxury housing (above INR 1 crore) from 2019 to 2025, driven by higher incomes, lifestyle changes, NRI investments and targeted developer efforts.

A_ordable Housing Decline: The supply and sales of affordable housing saw a substantial decline, facing challenges from rising costs and operational viability issues.

Price Appreciation: Average residential prices across major cities saw a notable year-on-year increase in 2024.

Inventory Reduction: Available housing inventory in top cities decreased due to strong demand and restricted new supply.

Consumer Preferences: Buyers showed interest in tech-enabled homes, integrated townships, and flexible living arrangements.

As per Knight Frank Research, the unit sales in the Indian housing market during FY2024-25 grew by 4.82% Y-O-Y, whereas the new launches went up by 5.41%.

Residential Units	Sales	Launches
FY2023-24	336,314	356,701
FY2024-25	352,541	375,991

As of the end of March 2025, there was an unsold inventory of 503,873 housing units vis-?-vis 480,420 units at the end of March 2024.

Indian Real Estate – Office Segment

The Indian office real estate market has driven the growth of the commercial real estate segment in the past decades. Once dominated by information technology, office spaces are being increasingly leased by other sectors such as BFSI (banking, financial services, and insurance), engineering, manufacturing, e-commerce, and co-working sectors. The segment has demonstrated consistently low vacancy and high absorption rates. The segment has received a big boost from the enabling of Real Estate Investment Trusts (REITs), which own, manage, and fund income-producing real estate to cater to the demand for Grade-A office supply. Office properties have emerged as the most popular sector for investment among high-net-worth individuals (HNI) in India and international PE investors, who together represent the majority of all equity investments in Indian real estate.

Office Space Demand: India was projected to lead in Grade-A office supply in the Asia-Pacific region, driven by strong demand.

Industrial & Logistics Boom: The sector continued to show strong demand, with a focus on 3PL and E&M firms.

Decentralized Supply Chains: A shift towards ‘multipolar supply chains is boosting demand for warehousing and logistics facilities.

Popular Investment Segment: Office properties have emerged as the most popular segment for investment among high-net-worth individuals (HNI) in India and international PE investors, who together represent the majority of all equity investments in Indian real estate. And REITs have emerged as a preferred vehicle for both institutional and retail investors.

As per Knight Frank Research, the office segment of Indian real estate saw a decline of 17% in the completion of office spaces, whereas transactions/ absorptions increased by 30% in FY2024-25 over the previous fiscal.

Office Space	Completions	Transactions
FY2023-24	4.82 million sq. meter (51.4 mil- lion sq. feet)	5.98 million sq. meter (64.5 mil- lion sq. feet)
FY2024-25	3.98 million sq. meter (42.8 mil- lion sq. feet)	7.79 million sq. meter (83.9 mil- lion sq. feet)

The vacancy levels dropped from 15.8% at the beginning of the financial year to 14.3% at the end, as a result of the increased transactions and lower completions. Most markets saw a growth in rentals on a Y-O-Y basis.

Outlook

The Indian real estate sector is undergoing a significant transformation, with its positive outlook for FY2026 driven by evolving consumer behaviour, technology, and new investment avenues. The residential markets growth is fuelled by a strong preference for homeownership, seen as a means for asset creation and intergenerational wealth, and a notable shift towards low-density housing like villas and townhouses, particularly in suburban and Tier-2 cities.

Beyond the traditional segments, the sector is expected to see a growing importance of new trends and technologies. The REIT space is poised for continued growth, with the emergence of Small and Medium REITs (SM REITs) expected to democratize access to real estate investment. Furthermore, the concept of tokenisation of real estate is gaining traction, allowing fractional ownership through blockchain technology to improve liquidity and broader investor participation. On the development and operational front, PropTech innovation is a key driver, with the adoption of AI, Machine Learning, and automation streamlining processes from property valuation to transactions. Complementing this, Environmental, Social, and Governance (ESG) factors have gone mainstream, with a clear preference from both investors and end-users for green-certified and sustainable properties, recognizing that they can also command higher rents.

The credit rating agency ICRA has projected a 6–9% rise in new residential launches in FY2025-26 with a price rise of 3–5%, signalling strong demand and developer pricing power. As per Grant Thornton, the demand for commercial real estate will be fuelled by the continued expansion of GCCs, technology sector leasing, and growing tenant demand for flexible, ESG-compliant Grade A office spaces. The demand for Grade-A office spaces will remain strong in IT hubs like Bengaluru, Hyderabad, Pune, and Chennai. Further, a trend for establishing data centres in India, thanks to the exponential rise in digital consumption, will attract heavy investments.

3. COMPANY OVERVIEW

Parsvnath Developers Limited is Flagship Company of the Parsvnath Group. Established in 1990, the Company is Indias leading real estate brand with 4 decades of legacy. The company has near a pan-India presence, spread across 37 cities in 13 states. The Company has an impeccable track record of project execution across a diverse set of real estate products like Integrated Townships, Residential, Commercial, Retail, DMRC Station Development, IT Park, SEZ and Third-Party Contracting projects. To its credit, the Company has the credit of being the first Company in Indian real estate to integrate and implement quality standards such as ISO 9001, 14001 and OHSAS 18001.

The residential housing projects developed by the Company offer the customers best amenities in addition to quality construction of multiple con_guration units in high-rise apartment blocks, row houses and group housing. It also offers residential plots on sale. The projects that have made a name for the Company in this segment are Parsvnath Edens

– Greater Noida, Parsvnath Exotica – Gurugram, Parsvnath Green Ville – Gurugram, Parsvnath La Tropicana – Delhi, Parsvnath Planet – Lucknow and others.

In the Integrated Township projects, Parsvnath Group offering includes apartments, villas, group housing, plots, schools, hospitals, retail and commercial units. It has completed 14 township developments across major cities foremost among them being Ujjain, Dharuhera, Panipat, etc.

Among the leading institutions and corporates that operate from the Companys commercial projects is State Bank of India, ICICI Lombard General Insurance Company, Aditya Birla Group, Karmayogi Bharat, Agriculture Insurance Company of India Limited, LOr?al, Sammaan Capital, Sammaan_Finserve Ltd. Other than this, the main highlights among the Retail brands with presence in the Companys properties include PVR, Metro Cash & Carry, LOTS whole sales, Haldirams, KFC, Food forum- Food court, Caf? Co_ee Day, Burger King, Dominos, Pizza Hut, NEXA, Adidas, Skechers, Puma, Benetton, etc.

Delhi Metro Rail Corporation Limited (DMRC)s award of integrated property development rights at MRTS stations and commercial development of incremental land pockets available with it has been the most important project wins for the Company. The ‘Concession agreements are on a Build-operate-transfer (BOT) basis with terms of 30 years. Till date, Parsvnath Group has completed construction of 8 (Eight) DMRC projects.

The overall developed area of 76.86 million sq. ft. in 83 projects has been delivered by the Company till March 31, 2025. The number of ongoing projects is 23 with a potential development area totaling to 15.34 million sq. ft.

a. Segment Highlights of Completed Projects

Residential Segment

The Residential developments completed by the Company are based in 35 projects with a total area of 15.92 million sq. ft. These developments are concentrated in major cities such as Delhi, Gurugram, Greater Noida, Sonepat, Rohtak, Karnal, Indore, and many more.

Integrated Townships

The Companys Integrated Township portfolio comprises of the projects in cities such as Karnal, Rohtak, Indore, Jaipur, Panipat, Sonepat with commercially exploited and completed area of 55.53 million sq. ft. in 14 townships till March 31, 2025.

Commercial Segment

With a total leasable/ saleable area of 2.51 million sq. ft. spread over 20 completed projects in the prominent cities till March 31, 2025, the Company has established a significant presence in the Commercial segment. This segment had gained prominence in the Companys portfolio due to its focus on reliable income streams and steady demand patterns.

DMRC Projects

As on March 31, 2025, Parsvnath Group had completed 8 DMRC projects with a total developed area of 1.06 million sq. ft.

Other segments

The Company has also ventured in other segments such as

Hospitality and Contracting. Total area developed by the Company in other segments including contractual projects is 1.84 million sq. ft.

b. Segment-wise Under-construction Projects

Among the ongoing Residential and Integrated Township projects of the Company, the major ones are Parsvnath La Tropicana – Delhi, Parsvnath Paramount – Delhi, Parsvnath Exotica Extension (Part) – Gurugram, Parsvnath Palacia – Greater Noida, Parsvnath Castle – Rajpura, Parsvnath Villas – Saharanpur, and Parsvnath City township projects in Karnal, Rohtak and Indore.

Under Construction Projects		(As on March 31, 2025)
No.	Segment	No. of Projects	Area (Million Sq. Ft.)
A	Residential (Group	17	9.91
	Housings) Projects
B	Commercial /IT Park	3	1.19
	Projects
C	Integrated Town-	3	4.24
	ships Projects
_	GRAND TOTAL	23	15.34
	(A+B+C+D)

c. SWOT

Strengths

? Established brand name with a legacy of more than 4 decades.

? Diversified portfolio of market segments and regional mix.

? Strategically located and high-value land bank. ? Professional, skilled, and dedicated workforce.

Weakness

? High debt levels increase the cost of capital.

? Longer project gestation period leading to more capital invested in projects and possible cost escalation. ? Project execution delays due to various internal and external factors.

Opportunities

? Government policies promoting the sectors growth, like Affordable Housing, Housing for All, PM Awas Yojna Urban 2.0, SWAMIH Fund II, and more.

? Favorable interest rate cycle with increased interest from and flexibility in the regulatory regimen for funding by financial institutions. Many alternative options are available from foreign investors, REITs, Alternative Investment Funds (AIFs), and other sources.

? Strong economic growth and increasing urbanization are leading to a greater demand for residential and commercial properties.

? Global Capability Centers (GCCs) and gradual reversal of remote working across industries are leading to more demand for commercial/ retail spaces.

Threats

? Increase in cost of capital or cost of project execution. ? Legal or regulatory updates leading to higher compliance and delays in execution.

? Slump in demand due to market sentiments.

4. COMPANY PERFORMANCE & OUTLOOK a. Financial Performance

The consolidated operating revenue booked by the company during FY 2024-25 decreased by 45.04% from _ 462 Crores to _ 253.93 Crores. The increase in Other Income from _ 31.72 Crores to _ 49.53 Crores resulted in the Total Income of the Company decreasing at a lower rate of 38.54% to _ 303.46 Crores.

The Loss before Exceptional Item & Taxes for the reported financial year was lower than the previous year by 19.26% at _ 459.08 Crores. The company has recognised an Exceptional Gain of _ 120.65 Crores in the reported financial year vs. _ 61.26 Crores in the previous year. The Exceptional Gain was on account of the waiver of Interest and other dues on the settlement of loans with one of the lenders.

In addition to the Loss before Taxes, the companys Loss after Tax for the period was further impacted by recognition of a Deferred Tax Asset of _ 5.54 Crores and a prior period tax adjustment of _ 3.19 Crores. The Loss after Tax for the period decreased by 41.55% from _ 594.14 Crore in FY 2023-24 to _ 347.27 Crore in FY 2024-25.

b. Significant Changes in Key Financial Ratios

In compliance with the requirements of Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, the significant changes (i.e. 25% or more during the financial year 2024-25, as compared to financial year 2023-24) in the key financial ratios (Standalone), as mentioned in these regulations are given herein below:

Sr. No.	Ratio	As at 31-March-2025	As at 31-March-2024	% Change in ratio	Reasons for more than 25% change
1	Current ratio (in times)	0.77	0.78	-1.28%	-
2	Debt-equity ratio (in times)	N.A.	7.52	N.A.	Not disclosed as shareholders equity is negative
3	Debt service coverage ratio (in times)	(0.10)	0.04	350.00%	Due to decrease in losses incurred during the year and increase in borrowings
4	Return on equity ratio (%)	N.A.	(348.28)	N.A.	Not disclosed as shareholders equity is negative
5	Inventory turnover ratio (in times)	0.05	0.12	-58.33%	On account of decrease in Cost of goods sold
6	Trade receivable turnover ratio (in times)	0.48	1.24	-61.18%	Due to decrease in revenue
7	Trade payable turnover ratio (in times)	0.14	0.37	-62.16%	On account of decrease in Cost of goods sold
8	Net capital turnover ratio (in times)	-0.12	-0.39	69.23%	Due to decrease in revenue
9	Net profit ratio (in %)	(160.32)	(146.18)	-9.67%	-
10 11	Return on capital employed (%) Return on investment (%)^	(4.07)	1.03	-495.15%	Due to increase in losses
	i. Fixed income investments	6.80	6.52	4.29%	-

*does not include return on investment in subsidiaries, associates, joint ventures and partnership firms which are stated at cost as per Ind AS 27 ‘Separate Financial Statements and unquoted equity investments being measured at fair value through other comprehensive income (‘FVTOCI).

c. Operational Highlights

During the financial year, the Company was successful in booking sale of 2.24 Lakhs sq. ft. area at a valuation of Rs. 2,901.57 lakhs. The break-up of the total booking between the segments was as follows:

?	Residential Group Housing	: 21,081 sq. ft.
?	Commercial Property	: 10,049 sq. ft.
?	Integrated Townships	: 193,411.62 sq. ft.

As on March 31, 2025, the Company has completed total area sq. ft. distribution across segments was:

?	Residential group housing	: 15.92 Million Sq. Ft.
?	Commercial/ retail property	: 2.51 Million Sq. Ft.
?	Integrated township	: 55.53 Million Sq. Ft.
?	DMRC Projects	: 1.06 Million Sq. Ft.
?	Contractual	: 1.84 Million Sq. Ft.

d. Segment Highlights

		Bookings (by Segment) During FY 2024-25
No.	Segment	No. of Projects	Booking Value (Rs. Lakhs)	Area in (sq. ft.)
A	Residential (Group Housings) Projects	7	585.45	21,081
B	Commercial /IT Park Projects	4	1,083.85	10,049
C	Integrated Townships Projects	10	1,232.27	1,93,411.62
_	GRAND TOTAL (A+B+C)	21	2,901.57	2,24,541.62

 

	Area completed	(by Segment) As on March 31, 2025
No.	Segments	No. of Projects	Area in (Million Sq. Ft.)
A	Residential (Group Housings) Projects	35	15.92
B	Commercial / retail property	20	2.51
C	Integrated Townships Projects	14	55.53
D	DMRC Projects	8	1.06
E	Contractual	6	1.84
_	GRAND TOTAL (A+B+C)	83	76.86

e. Business Strategy & Outlook

The real estate industry has been riding on the wave of good macroeconomic performance and political stability in the Indian Economy. This is likely to continue in the immediate future. The Company is focused on recovering from the fiscal issues created by the past demand slumps by riding on this positive industry scenario. The strategic focus areas for the Company in the coming year to leverage the industry tailwinds are as follows:

? Focus on improving balance sheet strength

The Company will prioritize debt reduction to strengthen its balance sheet, which will enable it to be prepared for all future growth opportunities with the ability to raise capital for the execution of new and existing projects.

? Execution Focus

The Company is focused on settling the past disputes within and outside the legal framework.

It will also place equal emphasis on the timely and quality deliveries of the ongoing projects to ensure timely revenue realization and the prevention of further disputes.

? Collaborative Growth Opportunities

The Company will also continue its strategy to grow collaboratively, involving like-minded players from the industry. This approach helps all constituents to share risks, capital expenditure, and the value benefits. One of the existing successes has been its alliance with the Unity Group, named ‘Unity Parsvnath LLP. This alliance was set up for the construction and development of a project at Netaji Subhash Place, Delhi.

f. SUBSIDIARIES AND ASSOCIATE COMPANIES i. Subsidiaries Companies Parsvnath Infra Limited (PIL)

Parsvnath Developers Limited holds 94.87% equity in PIL. PIL was allotted land by Andhra Pradesh Industrial Infrastructure Corporation Ltd. for setting up a Biotechnology SEZ at village Karkapatla, District Medak, Andhra Pradesh for which the sale deed was executed in 2010. However, there were some discrepancies in the survey numbers of the allotted land which were subsequently recti_ed. As a result, the commencement of the project was delayed. PIL received a notice dated May 26, 2018 from Telangana State Industrial Infrastructure Corporation Ltd (TSIIC) for cancellation of allotment of land due to delay in execution of the project. A writ petition has been filed against the cancellation order of allotment of SEZ Land by TSIIC before the Telangana High Court. The Honble Court has directed TSIIC not to create any third-party rights over the land in dispute. An amicable resolution is also being tried simultaneously.

PIL intends setting up a Private Integrated IT / Hitech Park. On application for setting up Private

Integrated IT/ Hi-tech Park in Ernakulam District, Kerala, the Information Technology (A) Department - Government of Kerala has certified the said Park to be a Private Integrated IT & HiTech Park.

Parsvnath MIDC Pharma SEZ Private Limited (PMPSPL)

PMPSPL, a subsidiary of PIL, was incorporated to implement a pharmaceutical SEZ project in Maharashtra. However, the project was found to be unviable and therefore surrendered during 2014-15. Options are now being explored for taking up suitable business in PMPSPL.

Parsvnath Landmark Developers Private Limited (PLDPL)

Construction of a premium residential project "La Tropicana" at Civil Lines, Delhi, is in progress. The project is being constructed in four phases. Possession for fit out for Phase I and Phase II are completed and the families have started residing there and the club is also operational. The construction work of Phase III is in progress. Structure work is almost completed and finishing work is in progress. PLDPL has yet to start the construction of Phase IV.

Parsvnath Hotels Limited (PHL)

PHL, wholly owned subsidiary of the Company, aimed at carrying on the business of development of hotels. PHL is exploring the business opportunities and looking for development of suitable projects.

Parsvnath Estate Developers Private Limited (PEDPL)

PEDPL, a wholly owned subsidiary of the Company, has constructed the "Parsvnath Capital Tower", a modern state of-the-art office-cum-commercial complex of international standards, located adjacent to Connaught Place on Bhai Veer Singh Marg, New Delhi on land allotted on BoT basis from DMRC. The complex has two parts. Part A has been completed and is leased out to leading organisations like the State Bank of India, ICICI Lombard General Insurance Company, Aditya Birla Group, Karmayogi Bharat, Agriculture Insurance Company of India Limited, LOr?al, Sammaan Capital, Sammaan_Finserve Ltd. etc. Part B has been completed in May 2021 and is in the process of being leased out.

PEDPL is working towards modernizing the building with major renovation and upgradation of lift lobby, reception and exterior of building. This will greatly enhance the building outlook and help in further leasing out of the building. This work is largely completed.

Parsvnath Promoters and Developers Private Limited (PPDPL)

PPDPL was identified as the SPV to implement a residential project at Delhi awarded by Rail Land Development Authority (RLDA) to the Company. However, since RLDA subsequently wanted the project to be implemented by a newly incorporated company, a new company Parsvnath Rail Land Project Pvt. Ltd (PRLPPL) was incorporated and the project was transferred to PRLPPL. While a major part of the consideration for the assignment/ transfer of the project has been received from PRLPPL, receipt of the remaining part will depend on the outcome of the arbitration proceedings initiated by PRLPPL and the Company against RLDA.

Parsvnath Rail Land Project Private Limited (PRLPPL)

PRLPPL was incorporated for implementing the residential project near Rani Jhansi Road, Delhi, on land leased by Rail Land Development Authority (RLDA). Your Company had tied up with Red Fort Capital Group, international private equity investors, for investment in the project. However, because of various factors including inability to achieve financial closure due to delay in approval of building plans, PRLPPL had surrendered the project and sought refund of the amounts deposited towards land premium. Since the RLDA disputed the claims of PRLPPL and the Company for refund, the matter was referred to arbitration.

In one of the arbitration proceedings, an arbitral award of Rs.146.19 cr. was awarded in favour of the organization which was modified to Rs.147.47 cr. after seeking rectification in the award. The Honble High Court, Delhi issued notice and directed RLDA to deposit the principal awarded amount along with interest @ 6.5% per annum (as per the Original Award). RLDA has deposited the substantial amount with the Registry of the Honble Court, which may be released by furnishing of security. The matter is sub-judice.

Another arbitral award has also been pronounced, in one of the arbitration proceedings, wherein a sum of Rs.3.30 cr. along with the interest, in the event RLDA fails to make the payment, was awarded in favour of the organization. RLDA has deposited a sum of Rs.1.65 crores (50% of the awarded amount) with the Registry of the Honble High Court, Delhi and the Honble Court has directed to release the amount subject to furnishing of security to the satisfaction of the Registrar General.

Parsvnath Hessa Developers Private Limited (PHDPL)

PHDPL, a wholly owned subsidiary of the Company, is developing a part of the premium luxury residential project "Parsvnath Exotica" at Gurgaon, Haryana. Possession of fiats of all the towers, have been given to the customers except the EWS Tower whose construction is almost completed.

Parsvnath Buildwell Private Limited (PBPL)

PBPL, a wholly owned subsidiary of the Company, is implementing a premium residential project "Parsvnath Exotica - Ghaziabad" in Ghaziabad District,UttarPradesh,spreadoveranareaofapprox.

12.55 hectares. Construction has been delayed due to delay in receipt of approval of revised building plans from the Ghaziabad Development Authority, which has been now partially approved. In terms of the Order passed by the Honble Supreme Court in a related matter, arbitration proceedings were initiated against the land owners. An arbitral award was passed by Ld. Sole Arbitrator terminating the contracts between the parties. PBPL challenged the Award by filing objections under Section 34 of the Arbitration and Conciliation Act, 1996 on the ground that the Ld. Arbitrator has erroneously considered a non-determinable contract to be a determinable contract. The Commercial Court, Gautam Budh Nagar allowed the objections filed by PBPL thereby setting aside the Impugned Award in entirety.

Subsequently, the collaborators (land owners) filed an Appeal under section 37 of the Arbitration and Conciliation Act, 1996 before High Court of Judicature at Allahabad challenging the order of Commercial Court. The Bench has directed that during pendency of the Appeal, status quo pertaining to the land in question shall be maintained by the parties.

Parsvnath Realcon Private Limited (PRPL)

PRPL is developing a luxury residential project at Subhash Nagar in West Delhi on land acquired from DMRC. Construction was delayed due to delay in receipt of approval for revised building plans by South Delhi Municipal Corporation which was mainly by certain acts of commission/omission by DMRC. Construction of the Project is almost completed. Possession has been offered in all four residential towers. The allotment is yet to be offered in EWS Tower.

The Company had initiated arbitration proceedings against DMRC. By way of Award, Arbitral Tribunal has extended the period of lease by 9 years i.e. increasing the original lease period to 99 years as against 90 years in terms of the contract. The Arbitral Tribunal also granted a claim of Rs.90 Lakhs to the organization against litigation costs along with interest at the rate of 9% p.a. and rejected counter claims filed by DMRC.

Subsequently, a petition under Section 34 of the Arbitration and Conciliation Act, was filed by DMRC challenging the arbitral award and a petition under Section 34 of the Arbitration and Conciliation Act, 1996 was also filed by the Company in this regard. Both the matters are sub-judice.

Parsvnath HB Projects Private Limited (PHBPL)

PHBPL, a subsidiary of Company and a joint venture with HB Estate Developers Ltd., is a SPV for developing a Hotel-cum-Multiplex-cum Shopping Mall Project viz., Parsvnath Mall Matrix at Mohali in Punjab. Pursuant to certain disputes with the Punjab Small Industries Export Corporation (PSIEC) from whom the plot of land was acquired, the allotment of the plot was cancelled by PSIEC vide their letter dated May 21, 2015. The Company filed an Arbitration Petition against Cancellation of Allotment. PSIEC initiated proceedings under Public Premises (Eviction of Unauthorized Occupants) Act. Orders were passed by the Authority on July 20, 2017 directing the Company to handover the possession of the site. PSIEC has taken symbolic possession of the land around early October, 2019. The arbitration proceedings are going on against PSIEC. It is believed that there are good chances that the Company may succeed in the Arbitration proceedings and the cancellation of the allotment may be set aside.

Parsvnath Film City Limited (PFCL)

PFCL was set up to implement a Multimedia-cum-Film City Project near Chandigarh on the land to be provided by Chandigarh Administration. PFCL had deposited Rs. 4,775.00 lakhs with ‘Chandigarh Administration (CA) for acquiring development rights in respect of a plot of land. Since CA could not handover the possession of the said land to PFCL, it sought refund of the allotment money along with compensation, cost incurred and interest thereon. The matter involved arbitration proceedings and subsequent petitions / appeal before the appropriate Courts.

The Honble Supreme Court of India on the appeal of PFCL, directed CA to pay PFCL the amount of initial deposit i.e. Rs.4,775 lakhs along with the interest @8% per annum on or before 30.06.2025. In case the amount is not paid on or before 30.06.2025, the interest shall be at the rate of 12% per annum. CA has paid the substantial amount to PFCL before 30.06.2025. It is believed that PFCL is entitled to the interest at the rate of 12% per annum on the whole amount since part payment of CA upto 30.06.2025 does not seem to be in compliance of the directions of the Honble Supreme Court of India and the available legal recourses are being explored in the matter.

PDL Assets Limited (PAL)

PAL is a SPV used for developing the Azadpur Project at Delhi in terms of the concession agreement executed with Delhi Metro Rail Corporation Limited ("DMRC"). DMRC has withdrawn the Project. Consequent upon denial of amicable resolution by DMRC, the Company invoked Arbitration in terms of the Concession Agreement. The matter is sub-judice under arbitration proceedings.

Parsvnath Realty Ventures Limited (PRVL)

PRVL is a SPV for developing the Akshardham Project at Delhi in terms of the concession agreement executed with DMRC. The Project is completed and is leased out to leading brands like Benetton, Nexa, Adidas, Adi Sports, Smart Chip Pvt. Ltd., Spemz Radiology, Bio-Met, Wow Momos, Skechers India, Crocs, Dominos, One and only, 99Nine, Haldirams, KFC, Caf? Co_ee Day, Lots, Sketcher, Puma, Burger King, etc.

Jarul Promoters & Developers Private Limited (JPDPL)

JPDPL is a SPV being used for developing the Seelampur Project at Delhi in terms of the concession agreement executed with Delhi Metro Rail Corporation Limited ("DMRC"). While part of the project has been developed by the Company, the SPV will be developing/ completing the balance part subject to requisite approvals from DMRC and the Lenders.

Suksma Buildtech Private Limited (SBPL)

SBPL is a SPV being used for developing the Inderlok Project at Delhi in terms of the concession agreement executed with Delhi Metro Rail Corporation Limited ("DMRC"). While part of the project has been developed by the Company, the SPV will be developing/ completing the balance part subject to requisite approvals from DMRC and the Lenders.

With respect to the disputes in connection with the performance of the Agreement between the Company and DMRC, parties have mutually undertaken that the disputes shall be referred to Arbitration. The Arbitration proceedings are going on in the matter.

Snigdha Buildwell Private Limited (SBPL)

Snigdha Buildwell Private Limited is a wholly owned subsidiary of Parsvnath Developers Limited. SBPL is engaged in development of various projects through its subsidiaries.

Evergreen Realtors Private Limited (ERPL)

Evergreen Realtors Private Limited is the step-down subsidiary of Parsvnath Developers Limited and subsidiary of Snigdha Buildwell Private Limited. ERPL is in looking for development of the suitable projects.

Generous Buildwell Private Limited (GBPL)

Generous Buildwell Private Limited is the step-down subsidiary of Parsvnath Developers Limited and subsidiary of Snigdha Buildwell private Limited. GBPL is looking for development of the suitable projects.

ii. Associate Companies

Amazon India Limited (AIL)

AIL in collaboration with the Company has successfully developed a group housing project viz., "Parsvnath Green Ville at Sohna whereat possession of all fiats have already been handed over. The Company is looking for implementing other suitable projects.

Homelife Real Estate Private Limited (Home Life)

Home Life has developed a part of a residential colony in Rajpura (Punjab) and balance part is currently under development.

5. HUMAN RESOURCES

A companys human capital is a key source of its competitive advantage, and your Company fully believes in this axiom. The Company is committed to investing in its people to ensure its success. Hence, the company has put in place sound HR practices to attract, retain, and develop the best talent. These practices include:

• Recruitment and selection of competent and professional talent

• Performance management to track and evaluate employee performance

• Training and development to help employees develop their skills and knowledge

• Compensation and benefits to attract and retain top talent

• Employee relations to create a positive and productive work environment

• Work-life balance to promote employee productivity and well-being

• Employee engagement to create a positive work environment

As on March 31, 2025, the Company has a total of 263 numbers of employees including contractual employees and Executive Directors.

6. RISK MANAGEMENT & MITIGATION

The Company has adopted an integrated risk management framework with supporting systems and structure to manage business risks. Managing risks is integral to running a business profitably, and this framework helps the Company identify, assess, mitigate, and monitor the risks. This section outlines the major risks that the Company manages while operating in the real estate sector and the mitigation approach adopted for each.

A. Demand Risk

The Companys projects and services may see reduced demand due to economic slowdown, slump in consumer sentiments, misalignment with consumer expectations, higher competition/ oversupply, or due to regulatory actions.

Mitigation

Some of the factors affecting demand are beyond the Companys control, whereas the rest are. For the factors in the Companys control, mitigation is in the form of accurate demand forecasting, market research to understand customer needs, and a study of local factors at the micro-market level to align pricing, positioning, and production/ inventory levels to the markets needs and demands more accurately. For the factors beyond the Companys control, the mitigation strategies are Portfolio Diversification, operating in segments with less demand volatility, partnerships to share risks, and industry engagement for a conducive regulatory environment.

B. Cost/ Infiation Risk

Any increase in the prices of input materials, services, and labor directly leads to a decline in the Companys profitability.

Mitigation

The Company has adopted various approaches to mitigate the risk of cost inflation, which include better project management to avoid delays that result in cost overrun, in-house execution of projects for better control with outsourcing only peak workloads to expedite execution, entering into long-term supplier relationships and rate contracts for quality raw materials, and efficient inventory management practices to minimize waste and storage costs. The Company also engages with registered contractors who can supply experienced labor at predictable costs.

C. Execution Risk

Delivery delays can not only result in higher operational costs but also higher capital costs, penalties, loss of revenue, customer dissatisfaction, and a dent in the Companys brand and credibility.

Mitigation

The Company mitigates the risks related to project execution through following approaches:

? Deploying project-based organization structures and creating a culture of on-time project execution. Ensuring there are no delays in assigning budgeted resources due to conflicting priorities.

? Developing strong, in-house project management capability to keep execution on track. This requires continued value addition to employees and staff through training and development programs, which are provided.

? Partnering with like-minded industry players for collaborations that minimize the capital at risk and pool resources for speedier project execution.

D. Funding Risk

Timely availability of low-cost capital in large amounts is critical to deliver real estate projects with the desired quality on time. Any delays in the availability of funds, an increase in the cost of borrowings, or unplanned increases in capital requirements can negatively impact a projects viability and also limit the Companys ability to finance other projects, thus affecting financial performance.

Mitigation

One of the ways in which the Company mitigates the risks related to capital is by improving internal cash flow generation through projects that deliver a regular revenue stream, such as commercial leasing, BOT projects, fee-based income, i.e., third-party contracts. It has also tightened its capital allocation checks to fund only projects with lower risks to project viability. The Company has been consistently making efforts to monetize non-core assets and to raise long-term debt/ capital, to reduce the cost of capital.

E. Compliance Risks

Given the nature of the Construction sector as a heavily regulated sector requiring approvals and compliance with complex laws and regulations at various levels from local bodies to state to the center, the risk of delays in securing approvals or failure in compliance is high. Such risks if realized may result in financial penalties, embargo on sale of units in a project, and/ or loss of reputation for the Company.

Mitigation

The Company nominatesa dedicated project compliance team, wherever necessary, to manage approvals and compliance to handle local complexities and needs related to a project to avoid any delays and lapses. It has also strived to develop a company-wide culture of full compliance with regulations and total rejection of unscrupulous activities through incentivization of the right behavior and strong internal controls.

F. Human Resources Risk

Construction projects require a large labor pool with diverse skillsets to complete the project and sell the units successfully. Any shortages or delays in labor availability may directly affect Companys execution capabilities and hence its financial performance.

Mitigation

The mitigation strategies to address the labor risks include:

? Appropriate HR strategies and capable HR professionals to attract, retain, and nurture skilled in-house manpower and professional senior employees.

? Ensure cordial employee-employer relations with an effective and transparent communication process to build engagement.

? Providing a safe and healthy work environment not only for the in-house personnel but also for contract workers to ensure high productivity.

? Continuous value addition to employees through training and development

7. INTERNAL CONTROLS AND SYSTEMS

The Company has implemented internal control systems that ensure alignment with company objectives and management directives, compliance with laws and regulations, accurate and timely recording of all transactions, and prevention of errors and malpractices. These controls are comprehensively and regularly tested by an in-house Internal Audit Department and external Internal Auditors, who carry out the internal audit of various project sites, commercial, and other functions of the Company. The Company also incorporates industry best practices in its operating manuals and control systems to remain abreast with developments. The Audit Committee reviews audit findings, recommendations of internal and external auditors, and issues directions to address process de_ciencies and prescribe actions in cases of misconduct. They also appropriately modify internal controls in case of any observed de_ciencies.

Key elements of the Companys internal control systems include:

? Policies and procedures ? Quality standards and checks

? Management structures and authority matrix

? IT systems

? Internal and statutory audits ? Review and corrective mechanisms

8. FORWARD LOOKING STATEMENT

Statements made in the Management Discussion and Analysis Report describing the Companys objective, projections, estimates, expectations may be forward looking statements within the meaning of applicable laws and regulations, based on beliefs of the management of your Company. Such statements reflect the Companys current views with respect to the future events and are subject to risks and uncertainties. Many factors could cause the actual result to be materially different from those projected in this report, including among others, changes in the general economic and business conditions affecting demand/ supply and price conditions in the segment in which the Company operates, changes in business strategy, changes in interest rates, inflation, defiation, foreign exchange rates, competition in the industry, changes in Governmental regulations, tax laws and other Statutes & other incidental factors. The Company does not undertake any obligation to publicly update any forward looking statements, whether as a result of new information, future events or otherwise.