Peninsula Land Ltd Management Discussions

<dhhead>Management Discussion and Analysis</dhhead>

1. COMPANY OVERVIEW

Peninsula Land Limited ("Peninsula" or "the Company"), the real estate development arm of the esteemed Ashok Piramal Group, has established a sustained and growth-oriented presence in the Indian real estate sector.

Over the years, the Company has built a strong reputation for delivering successful projects and setting industry benchmarks across asset classes, including pioneering retail developments, world-class commercial spaces and premium residential complexes.

As the Company is already taking significant strides on its next phase of growth under the "Peninsula 2.0" vision, it continues to embrace the principles of innovation, sustainability and excellence in all aspects of its operations.

A key strategic milestone during the period has been the operationalisation of the real estate development platform established in June 2024 in partnership with Alpha Alternatives Group and Delta Group. This platform has begun to gain traction with the launch of its first project, "Peninsula Estates - Alibaug ONE", in Alibaug. Several additional projects under this platform are in advanced stages of planning and are expected to be launched over the next 8-12 months.

The Company remains committed to delivering superior value to all stakeholders through the creation of thoughtfully designed and high-quality developments. Its approach continues to be guided by a strong customer focus, deep market insight and adherence to fair, transparent and ethical business practices.

2. ECONOMIC OVERVIEW

Global Economy

The global economy over the past 12 months has experienced significant volatility, shaped largely by heightened geopolitical tensions and evolving macroeconomic dynamics. Persistent conflicts, particularly in West Asia, have contributed to inflationary pressures across major economies and heightened uncertainty in energy markets. Fluctuations in crude oil prices have, in turn, exerted pressure on global currencies relative to the US dollar, prompting central banks to adopt a more calibrated and cautious approach to monetary policy.

Despite these challenges, there are emerging signs of stabilization. Expectations of a potential ceasefire in West Asia and a gradual return to normalcy have begun to improve investor sentiment and support global capital flows. Looking aheadconstraints andnomic outlook remains moderately optimistic, underpinned by resilient labour markets, easing supply chain constraints, and continued fiscal support-particularly in infrastructure development and energy transition initiatives.

Overall, while risks remain, the global economy is expected to maintain a trajectory of steady, albeit moderate, growth.

Indian Economy

India continues to exhibit strong macroeconomic resilience and remains among the fastest-growing major economies globally. Despite persistent global uncertainties, including geopolitical tensions and financial market volatility, the domestic economy has demonstrated stability, underpinned by sound fiscal management and proactive policy measures by the Government of India and the Reserve Bank of India (RBI).

The Central Government has maintained a sustained focus on infrastructure-led growth, supported by increased capital expenditure and many transformative initiatives. Continued investments in roads, metro rail networks, dedicated freight corridors, airports, and urban infrastructure are not only enhancing connectivity but also catalysing economic development and urban expansion. Policies promoting housing, manufacturing, digitisation, and energy transition further strengthen Indias long-term growth outlook.

The Reserve Bank of India has played a critical role in maintaining macroeconomic stability through a calibrated and balanced monetary policy approach. By effectively managing inflation, maintaining adequate liquidity, and ensuring stability in the financial system, the RBI has mitigated the impact of global headwinds. Its prudent stance on policy rates and foreign exchange management has supported currency stability and reinforced investor confidence amid global capital flow volatility.

Domestic demand continues to be a key driver of growth, supported by rising urbanisation, improving employment conditions, and resilient consumption trends. This has helped offset intermittent foreign institutional investment outflows, with strong participation from domestic institutional and retail investors providing stability to financial markets.

As geopolitical tensions ease, particularly in West Asia, and crude oil prices show signs of stabilisation, inflationary pressures are expected to moderate. This may provide additional policy flexibility to the RBI in the coming quarters, supporting a conducive environment for credit growth and investment activity.

3. REAL ESTATE ? INDUSTRY OVERVIEW AND OUTLOOK

The Indian real estate sector continued to demonstrate resilience and steady growth during FY 2025-26, supported by strong macroeconomic fundamentals, policy reforms, and infrastructure development. The sector remains a key contributor to the economy, with sustained momentum across residential, commercial, retail, and industrial segments.

The residential segment remained the primary growth driver, with healthy end-user demand and a noticeable shift toward premium and higher-value housing. While sales volumes saw some moderation, transaction values remained robust, reflecting rising aspirations and improved income levels.

The Mumbai Metropolitan Region (MMR) continued to be a significant market, driven by strong demand across mid-income and premium segments including plotted development, supported by infrastructure-led development.

The commercial real estate sector witnessed strong recovery, with record office leasing driven by Global Capability Centres (GCCs), IT/ITeS, and flexible workspace operators.

Looking ahead, the outlook for the sector remains positive. Residential demand is expected to remain stable with continued traction in premium housing, while commercial real estate is poised for sustained growth driven by GCC expansion. Industrial and logistics assets are expected to witness continued demand, supported by supply chain transformation and policy support.

Overall, the sector is well-positioned for steady growth, supported by strong fundamentals, improving transparency, and infrastructure-led urban development.

Key Industry Drivers

Infrastructure-led urban expansion

Sustained residential demand driven by end-users

Increasing institutional capital and REIT participation

Growing adoption of PropTech and digital solutions

Rising focus on sustainability and ESG

4. SEGMENT_WISE PERFORMANCE DISCUSSION

4.1 Residential Segment

The residential segment remained the principal contributor to the Companys business during FY 2025-26, driven by sustained end-user demand and stable financing conditions.

Demand trends indicate continued preference for:

Larger and better-designed homes

Projects by established developers

Integrated developments offering lifestyle amenities The Company continued to witness steady traction across its residential portfolio, particularly in key markets.

Geographical Performance

Real Estate Sector - Performance and Outlook (with MMR Focus)

The Indian real estate sector has demonstrated robust performance over the past year, emerging as a key beneficiary of favourable macroeconomic conditions, policy reforms, and strong end-user demand.

In the Mumbai Metropolitan Region (MMR), one of the countrys most prominent real estate markets, demand has remained strong across residential segments, particularly in mid-income and premium housing. Infrastructure development continues to be a major growth catalyst in the region. Key projects such as the Mumbai Metro network expansion, coastal road, trans-harbour link (MTHL), new airport at Navi Mumbai, and extension of the Freeway from existing Ghatkopar to Thane, sea-link connecting the Versova-Madh are unlocking new micro-markets and improving accessibility, thereby driving real estate absorption and price appreciation.

The residential segment has witnessed sustained demand driven by end-users, supported by rising income levels, favourable demographics, and a preference for home ownership. The commercial real estate segment has also shown steady recovery, with improved demand for office spaces driven by the services sector, Global Capability Centres (GCCs), and flexible workspace operators. Retail real estate is gradually strengthening, supported by increased consumer spending and the expansion of organised retail.

Looking ahead, the outlook for the Indian real estate sector remains positive. Growth is expected to be driven by continued infrastructure investments, urbanisation trends, stable interest rate environment, and sustained policy support for housing. In the MMR region specifically, ongoing infrastructure upgrades and limited land availability in core areas are likely to support long-term value appreciation and demand across segments.

Overall, the sector is well-positioned to achieve steady and sustainable growth, supported by strong macroeconomic fundamentals, increasing formalisation, and enhanced investor confidence.

4.2 Mumbai - Residential Redevelopment Market

The residential redevelopment market in Mumbai and its suburbs has officially entered a hyper-acceleration phase, driven by aggressive infrastructure growth and dramatic regulatory easing. Land scarcity has forced Mumbai to grow vertically, cementing redevelopment as the dominant mechanism for creating new housing stock in established neighbourhoods

The emerging scenarios across key operational and market vectors which include the following:

A. Market Sizing and Geographical Trends are characterised by:

Pipeline Scale: Over 1,100 Development Agreements (DAs) signed recently are set to pump approximately 59,000 new housing units into the market. The total market valuation of this current pipeline stands at an estimated 1.5 lakh crore.

Suburban Dominance: The Western Suburbs (Bandra to Borivali) command a massive 75%+ share of the total redevelopment activity, led heavily by micro-markets like Borivali and Andheri.

Central Suburbs Catching Up: Micro-markets like Ghatkopar, Kurla, Mulund, and Chembur account for roughly 20-25% of active projects.

South Mumbai Supply Influx: While historically slower, recent updates are unlocking stuck projects in prime nodes like Dadar, Mahim, and Parel.

B. Regulatory and Governance Landscape

Reduced Consent Threshold: In certain redevelopment scenarios, the mandatory consent required from housing society members has been slashed from 70% to a lean 51%. This policy change eliminates the standard bottleneck of minor holdouts blocking projects.

MHADA Intervention Power: A landmark amendment to the MHADA Act allows the authority to forcefully take over and redevelop stalled or unsafe cessed buildings (affecting 13,000 structures in the Island City) where landlords or developers have abandoned construction.

Mandatory Digital Governance & Safeguards: Housing societies must now mandate video-recording of general body meetings to ensure transparency. To prevent builder defaults, developers must provide a mandatory 20% bank guarantee of the total project cost.

FSI Incentives: Revisions under DCPR 2034 and Regulation 33(5) provide high Floor Space Index (FSI) and Transit-Oriented Development (TOD) benefits, allowing taller towers near major transit lines.

C. Cost Vectors and Viability Risks that need to be managed

Escalating Input Costs: Rising costs for raw materials (cement, steel, finishing goods) and labour are squeezing margins. So efficient project management, timely delivery are the key differentiators between competing developers.

Aggressive Bidding Caps: Premium expectations from housing societies (demanding disproportionately larger corpus funds and substantial extra carpet area) coupled with reckless financial bidding by non-local developers are creating severe project viability risks.

Displacement Rentals: Finding transit accommodations for displaced residents has caused a structural spike in the citys rentals. Displaced owners currently account for roughly 8% of Mumbais total rental demand.

D. Price Realisation and the "New vs. Old" Gap

The Premium Margin: The price gap between new primary properties and old secondary resale inventory has spiked significantly. Primary redevelopment inventory yields approximately a 44% price premium in Western Suburbs and a 30% premium in Eastern Suburbs over local resale apartments.

Micro-Market Micro-Pricing: Prices commanded by Redeemed properties across the city vary as between the West (Bandra-Andheri), mature northern hubs like Borivali and Value corridors like Ghatkopar and Mulund.

The "Minutes over Miles" Value: Price growth is no longer uniform. Realization is strictly tied to "infrastructure access"-projects within walking distance of the newly operating Metro Aqua Line 3, Coastal Road, and the MTHL (Atal Setu) corridors see an instant 10-20% premium realization.

E. Consumer Demand and Shift in Typologies

Gated Communities over Standalone Structures: End-users are steering clear of standalone redeveloped buildings. Demand has shifted heavily toward cluster redevelopment and plot-amalgamation projects that offer modern lifestyle amenities like multi-tier parking, clubhouses, and security ecosystems.

Mid-Premium Sweet Spot: The mid-segment residential unit priced between 1 crore and 2 crore is the highest volume driver, making up roughly 38% of total registrations.

Shrinking Affordability: The heavy push toward premiumization by top Grade-A builders taking over these properties means the middle class is increasingly being priced out of core suburban locations into peripheral regions.

F. Credibility: Due to historic delays, buyers exclusively prefer buying free-sale components from institutional, Grade-A developers with proven credibility, avoiding unorganized, small-scale developers.

4.3 Pune

Pune continued to be one of the Companys key focus markets during FY 2025-26, supported by its strong economic fundamentals, expanding infrastructure network, and sustained demand across residential and commercial real estate segments. The citys well-established presence as a major IT, ITeS, manufacturing, and education hub continued to attract a skilled workforce and drive housing demand across micro-markets.

The Company maintained a strong presence in Pune through multiple ongoing projects across residential and plotted development segments. Continued investments in infrastructure, improved connectivity, and growing urbanization have further enhanced the attractiveness of the Pune market. The Company remains optimistic about the long-term growth prospects of the city and continues to evaluate opportunities that align with evolving customer preferences and market demand.

4.4 Plotted Development

Plotted development continues to be one of the Companys core business verticals and an important driver of future growth. Through its projects across the Mumbai Metropolitan Region (MMR), Pune, Karjat, Alibaug, and other emerging growth corridors, the Company has strengthened its presence in markets witnessing increasing demand for land ownership, second homes, and lifestyle-oriented developments.

The segment has benefited from evolving consumer preferences towards larger living spaces, integrated communities, and flexible development options. Improved regional connectivity, infrastructure upgrades, and growing interest from both end-users and investors have further supported demand in these locations.

Leveraging its expertise in land acquisition, planning, and project execution, the Company continues to identify and develop strategically located plotted development opportunities. The Company remains confident that the increasing preference for plotted assets, coupled with the long-term growth potential of emerging residential corridors, will continue to support sustainable business growth in the years ahead.

4.5 Commercial Segment

The commercial segment demonstrated resilience during the year, supported by steady demand from technology companies, Global Capability Centres (GCCs) and financial services firms.

The sector continues to benefit from Indias favourable economic fundamentals, rising demand for high-quality Grade A office assets, and occupiers increasing preference for sustainable and technologically advanced workspaces. Institutional investors remain attracted to the sector due to stable rental yields, strong occupancy levels, and the long-term growth potential of Indias office markets. Further, the growing penetration of Real Estate Investment Trusts (REITs) has enhanced transparency and provided an additional avenue for capital deployment within the commercial real estate ecosystem.

The data centre sector has emerged as one of the fastest-growing real estate asset classes in India. JLL estimates that Indias operational data centre capacity surpassed 1 GW in 2024 and is expected to reach approximately 1.8 GW by 2027, driven by cloud adoption, artificial intelligence applications, digital transformation initiatives, and increasing data localisation requirements. Supported by sustained economic growth, infrastructure development, digitalisation, and favourable demographic trends, the Company believes that the long-term fundamentals of Indias commercial real estate sector remain strong. The continued growth of office spaces, logistics infrastructure, and digital assets is expected to create attractive opportunities for developers, investors, and occupiers across key real estate markets Growth drivers included:

Expansion of GCCs and outsourcing activity

Gradual normalisation of workplace strategies

Continued demand for high-quality office space

5. FINANCIAL REVIEW ( in Crore)

Year	2025-26	2024-25
Revenue	169	263
EBITDA	(101)	35
PAT	(154)	(25)

Key Financial Ratios Analysis:

The Analysis of Key Financial Ratios have been separately explained in the Financial Statements Section of this Annual Report under Note No.55 to the Standalone Financial Statements of the Company for the year 2025-26.

6. OPPORTUNITIES AND THREATS

Opportunities

Continued urbanisation and infrastructure expansion

Increasing demand for organised real estate developers

Growth in emerging asset classes such as logistics and data centres

Rising institutional participation

Threats / Risks

Changes in regulatory environment

Volatility in input costs

Interest rate fluctuations

Macroeconomic uncertainties including residual geopolitical risks

7. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

In todays digital era, data remains one of the Companys most valuable assets. Recognizing the critical importance of safeguarding information and strengthening process-driven internal control systems, the Company has launched a comprehensive internal initiative titled PROTECT PLL 360. The programme is designed to build awareness, strengthen organizational practices, and embed a culture of security and accountability into everyday operations. Through this initiative, the Company seeks to enhance data protection, reinforce compliance standards, and promote responsible business practices across all functions. Together, these efforts contribute towards protecting our customers, our business, our reputation, and our future.

The Companys internal control framework extends beyond conventional financial controls and statutory audit requirements. Regular audits and reviews are conducted to evaluate the effectiveness of operational processes, quality assurance mechanisms, and compliance with established standards. Particular emphasis is placed on ensuring that materials deployed at construction sites are subjected to appropriate quality testing and verification procedures before use.

The Company continuously reviews its business processes to ensure adherence to defined protocols, strengthen governance, and identify opportunities for improvement. Internal audits focus on evaluating whether established processes are being followed consistently and effectively across the organization. Based on audit findings and industry developments, processes are periodically updated and enhanced to align with evolving regulatory requirements and global best practices.

By adopting a flexible, practical, and risk-based approach, the Company remains committed to maintaining a robust internal control environment, ensuring operational excellence, enhancing stakeholder confidence, and supporting sustainable long-term growth.

8. RISK MANAGEMENT

At Peninsula Land, we have a internally constituted risk management task team comprising people from diverse backgrounds to not just oversee, but also efficiently manage and mitigate the risks facing the Company. The team conducts need-based reviews and is actively involved in identifying and addressing existing and potential risks and deploying mitigation measures adopted by the Company.

9. HUMAN RESOURCES

The Company believes that its people are the driving force behind its success and sustainable growth. As on March 31, 2026, the Company had a workforce of more than 200 employees, supported by a team of qualified professionals contributing across various functions and operations of the Group.

The Company recognizes its human capital as one of its most valuable assets and a key pillar of its organizational strength. The commitment, expertise, and dedication of employees continue to play a vital role in achieving business objectives and delivering value to stakeholders.

The Company has established comprehensive human resource policies and practices aimed at fostering a positive, inclusive, and performance-driven work environment. Continuous learning and capability development remain key priorities, supported through various training programmes, skill enhancement initiatives, leadership development efforts, and knowledge-sharing platforms. These initiatives are designed to equip employees with the skills and competencies required to meet evolving business and industry requirements.

The Company also places significant emphasis on employee engagement and well-being. Through various employee engagement programmes, cultural events, celebrations, and team-building activities, the Company promotes collaboration, inclusiveness, and a strong sense of belonging among employees. Such initiatives help strengthen organizational culture, enhance employee morale, and support long-term professional growth.

The Company remains committed to nurturing talent, promoting a culture of excellence and innovation, and creating a workplace that enables employees to realize their full potential while contributing to the Companys continued success.

10. OUTLOOK

The outlook for the real estate sector and the Company remains positive, though subject to macroeconomic conditions.

The residential segment is expected to continue its growth trajectory, supported by strong demand fundamentals and favourable demographics. The commercial segment is expected to witness steady recovery driven by leasing activity and institutional investments.

The Company remains focused on:

Strengthening execution capabilities

Maintaining financial discipline

Expanding its project pipeline through strategic partnerships

Leveraging its development platform for growth Given its established brand, diversified portfolio and prudent strategy, the Company is well-positioned to capitalise on emerging opportunities in the real estate sector.

11. CAUTIONARY STATEMENT

Certain statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied due to various factors including economic conditions, regulatory changes, input costs, demand-supply dynamics and other risks associated with the real estate industry.

12. DISCLAIMER

Peninsula may be registering its upcoming projects at appropriate time in the applicable jurisdictions / States under the Real Estate (Regulation and Development) Act, 2016 (RERA) and Rules there under. Until and unless, explicitly registered / declared / stated on the official websites of RERA, none of the images, material, projections, details, descriptions and other information that are mentioned in the Annual Report for the year 2025-26, should be deemed to be or constitute advertisements, solicitations, marketing, offer for sale, invitation to offer, or invitation to acquire within purview of the RERA. We use carpet areas as per RERA in our customer communication. However, the data in saleable area terms (wherever mentioned) has been presented in the Annual Report for the year 2025-2026 to enable continuity of information to investors and shall not be construed to be of any relevance to home buyers / customers.