Peninsula Land Ltd Management Discussions

Peninsula Land Limited (Peninsula) is the real estate development arm of the esteemed Ashok Piramal Group with a sustained and growth-oriented track record in the real estate vertical. Peninsula has created a reputation for delivering successful projects, thereby establishing industry benchmarks including pioneering retail ventures, world-class commercial projects and residential complexes. Over the last few years, we have overcome our hurdles to emerge as a hungry, profitable, low-leveraged, and performance-oriented organisation poised for big-time growth. As a part of its growth plans, Peninsula has setup a Real Estate Development Platform in Joint Venture with Alpha Alternatives group and Delta Corp Ltd., to exploit the potential in the plotted- development and redevelopment segments in Alibaug, Karjat, Pune and the MMR region. We have embraced the philosophy of innovation, sustainability, and excellence in real estate sector. Peninsula has always strived to deliver superior value to all stakeholders through creation of excellent and imaginative edifices keeping customer focus and insight. And in doing so we have always valued all our stakeholders interest, echoing our fair and transparent business practices and ethics.

Some of the significant aspects of the global Geopolitical and Economic front, which could have an impact on how our trade, industry and business function are:

1) USA, turning protectionist on various fronts like trade tariffs, immigration and labour policies and its unresolved geopolitical and its trade conflict with China and the tensions between NATO and Russia.

2) Increasing risk of cyber-attacks turning into state supported cyber warfare between nations, could lead to devastating consequences.

3) Nationalism, protectionism and populist policies of various Governments threatening to invoke de-globalisation and trade wars.

4) Global GDP growth at around 3.3% with outlook predictions not encouraging.

So, at a Global level we are perhaps in the most economically disruptive period seen in decades. With geopolitics playing an increasingly important role in global business, it is critical, now more than ever, for companies to have geopolitical risk analysis firmly embedded into their strategy and governance

While the global economy is still struggling in some respects, a recovery seems set to take place as the adverse effects of the previous surge in inflation subside. This is all happening against a backdrop of some political uncertainty. But while there are risks of a worse outcome, it is expected that inflation will generally continue to ease, and that fiscal policy will be tightened gradually. Most economies are benefiting from recent falls in inflation which have boosted real incomes significantly. Labour markets are still resilient, and unemployment rates are expected to remain low. Fiscal policy is still supportive in most cases and few governments intend to tighten it significantly. Indeed, government infrastructure spending has been the key factor in most cases of economic recovery and will continue to act as a tailwind. By the middle of next year, most of the major central banks will be cutting interest rates Thus firms and households will gradually face lower interest rates next year and growth is expected in most economies to accelerate towards the end of 2025 and into 2026. There is still a significant amount of capital sitting on the sidelines and, as with any period of adjustment, investment opportunities will arise. Indias GDP expanded at 6.5 % in FY 2024-25 and the forecast for 2025-26 is encouraging. Growth will sustain and gain momentum from second quarter of FY 2025-26 as political uncertainties abate. The Indian economy exhibits robust fundamental policies by Reserve Bank of India (RBI), which plays a key role in maintaining stability through its adept monetary policy framework. By carefully managing interest rates and liquidity, the RBI aims to control inflation while fostering sustainable economic growth. It ensures a resilient financial sector, contributing to overall economic stability. The resilience of Indian economy has navigated into the stock market to all time high. The stock markets relative resilience despite global scenarios, reflects investor confidence in Indias long-term growth prospects, driven by reforms, demographic dividends, and technological advancement. Higher economic growth typically correlates with increased job creation and improved social security measures. When a countrys GDP grows faster, businesses tend to expand and invest more, which leads to higher demand for labour across various sectors.

The Indian real estate (RE) continued its improved run, though a bit subdued in 2024-25, driven by prevailing optimism among consumers and developers. The market size has increased significantly, showcasing strong growth trends fuelled by economic stability and investor confidence. The desire for homeownership remains undeterred among consumers, as residential sales continue to breach previous highs. This market momentum is majorly driven by evolving consumer dynamics and a surge in projects with enhanced built-up experiences. The commercial segment has also grown steadily, fuelled by domestic demand, and increasing investor confidence in the Indian market.

Infrastructure augmenting growth: There is a synergistic relationship between infrastructure development and the RE sector. For instance, with the Noida International Airport expected to operationalize next year, neighbouring areas, such as Greater Noida and Yamuna Expressway, are witnessing robust RE activity, marked by a surge in new developments in residential, commercial, and retail spaces. Similarly, with upcoming / completed connectivity projects in Navi Mumbai—such as the Navi Mumbai International Airport, the Mumbai Trans Harbour Link, and the Navi Mumbai Metro Line 1—property prices are expected to witness a consistent upswing. Going ahead, with several infrastructure projects in the pipeline advancing seamless connectivity—the Delhi-Mumbai Industrial Corridor, Bharatmala, Delhi-Ghaziabad-Meerut RRTS corridor and the development of

100 airports by 2028—RE markets, especially in tier-2 and tier- 3 cities, will witness a demand growth. Prominent national-level developers are expected to tap into these newer markets to cater to the demand.

Changing consumer profile: Changing consumer profile and preferences are shaping emerging trends in RE. Favourable economic factors, such as a rising per capita income, stability in interest rates and strengthening regulations, are driving consumers today into the sector, particularly millennials who are opting for property ownership over renting. The largest demographic group, they prefer affordable, tech-savvy and socially conscious living spaces. Further, technological advancements are reshaping investment dynamics, opening doors for new investors, who are attracted by the ease in investing, creativity in portfolio management and enhanced information accessibility. The concept of fractional ownership is also rapidly gaining traction, offering several advantages, such as reduced financial burden and investment diversification. With SEBIs recent amendments to create a regulatory framework for Small and Medium REITS (SM REITS), the sector is expected to attract more investors. Asset tokenisation too is gaining traction, making fractional ownership easier. With first-time investors now starting at 25 years of age, the next generation is expected to shape RE products.

Strong global standing favouring commercial growth: The

commercial segment is expected to continue growing as India remains a favourable investment option amidst rising geopolitical tensions. The demand growth will be mainly driven by tech- enabled sectors expanding their operations in the country. Today, India is the most preferred destination for global shared services. The data centre stock is also likely to double to 23 million square feet in the next three years. Other trends, such as enhanced consumer spending, increasing manufacturing output and supply chain diversification, are further expected to boost commercial RE in the coming year. Following a significant year of institutional investments which grew by -20% in FY 2024-25, it is likely to see another spike, with investors preferring commercial asset classes such as logistics, warehouses, and data centres.

Expanding technology adoption: Surging digitisation is constantly disrupting the RE sector. PropTech is making processes, such as buying, selling, managing, and building, more efficient and transparent. Today, occupiers are preferring properties equipped with cutting-edge technologies, which enhance their living experience. As technology keeps expanding, use cases of emerging trends—such as AI, IoT and machine learning— are expected to increase. Estimates suggest that the global market size of RE is expected to grow at a CAGR of 9.5 per cent in the coming years. Emerging tech is also elevating customer experiences. By analysing complex metrics, consumers today can make informed and data-driven market decisions. Similarly, these advancements are also optimising property management from a developers perspective by reducing overall operational costs. Predictive tasks, such as managing finances, marketing, and maintenance, are now being automated. Going ahead, further advancements in VR, AR and generative AI can create much more immersive and interactive experiences. Besides this, tech has also evolved as an integral component of managing a largely fragmented construction cycle. Advanced digital tools—such as Building Information Modelling (BIM), 3D printing, drones and real-time tracking instruments—are ensuring cost-efficiency, quality, and timely delivery of construction projects.

Sustainability remains a key priority: ESG practices are seeing increased adoption. For instance, according to a recent KPMG- Colliers report, about 56 per cent of RE stakeholders have assigned high consideration to sustainability in projects. This growing consciousness is promoting sustainable buildings, which offer multiple benefits such as enhanced well-being, resource efficiency and reduced emissions. Although most green buildings have an added cost of 5 to 15 per cent, occupiers are opting for sustainability to meet their emission targets. Going ahead, driven by enhanced demand, government reforms and improvements in green financing, sustainability is expected to emerge as a key trend. growth.

GGovernment of India along with the governments of respective States has taken several initiatives to encourage development in the sector over the last few years which are now beginning to bear fruit. The Smart City Project, with a plan to build 100 smart cities, is a prime opportunity for real estate companies. In India, the real estate sector continues to be the second-highest employment generator after the agriculture sector.

• Indias real estate sector estimated presently at USD 0.66 trillion is expected to expand to US$ 1.04 trillion by 2030 contributing 13% to the GDP from an existing share of 7.3%.

• Rapid urbanisation bodes well for the sector. The number of Indians living in urban areas is expected to reach 542.7 million by 2025 and 675.5 million by 2035.

• Construction is the third-largest sector in terms of

FDI inflow. FDI in the sector (including construction development & activities).

• Government of Indias Housing for All initiative is expected to spike investment in the sector.

• Boosted by supply from established developers, stable economic conditions, and positive

2024-25 was again a very good year for the real estate sector, particularly the residential segment. There was a robust housing demand, primarily from the end-users, across the top 7 cities as well as the tier 2 and tier 3 cities of India. During the year, job security had improved significantly in view of the economy performing well. The growing home-ownership sentiment also helped residential real estate gain momentum. Housing sales in this year, breached previous peaks sales across the top 7 cities. Demand, driven primarily by end-users, was mainly focused on projects by Grade A developers, who gained even more market share in 2025. The weighted average launch price of homes in Indias top 9 cities rose by 9% in FY 2024-25 to 13,197 per sq. ft. as compared to 12,569 per sq. ft. in FY 2023-24

The Mumbai real estate market experienced robust growth despite global challenges, retaining its position as the top market with, marking the highest sales in eleven years. This surge stemmed from a positive economic outlook, increased disposable income among buyers, a shift towards larger homes, and a fear of missing out on opportunities in the flourishing market amidst rising prices. Sales surged during festive seasons like Navratri, Dussehra, and Diwali, which traditionally witness heightened real estate activities due to positive sentiments and developer strategies of introducing new projects with attractive payment plans. The residential market in Mumbai is poised for continued growth, driven by strong consumer demand fuelled by ongoing infrastructural developments, rising affluence, and evolving consumer preferences.

Punes residential market achieved all-time highs in 2024-25, with 52,346 units sold (up 6% YoY) and a remarkable 59,548 launches (up 40% YoY). The citys price growth is robust at 6% YoY, with average prices at 51,426 per sq m ( 4,778 per sq ft). Unsold inventory increased to 46,416 units (up 18% YoY), but the QTS is just 3.7 quarters—the lowest among major metros, indicating exceptional market health and absorption. (Source: Knight Frank, H2 2024). Punes demand is broad-based, spanning affordable to premium segments, and is supported by a strong IT/ITeS sector, manufacturing, and educational institutions. The office market is similarly vibrant, with high absorption and declining vacancy rates. The growth was particularly prominent in the West Zone, which accounted for 41% of total sales, driven by Punes status as an IT hub and focused infrastructure development efforts. This evolution has positioned Pune as a pivotal housing destination, prompting leading developers to actively pursue opportunities in this burgeoning market.

Despite the continued cyclical upswings and downswings, the Indian real estate sector has remained largely resilient. Indian economy to remain the flag-bearer of growth for the world economy, albeit with a few downside risks such as growing inflationary pressures. In Residential sector strong momentum to continue in sales and new launches; divergent trends in capital value appreciation are likely. Uptake of 5-10% expected in investment activity; ESG criteria to become paramount during due diligence. Flexible spaces are the new norms and Core + flex strategies likely to gain further prominence amidst portfolio expansion and hybrid working. Heightened movement from captive to colocation Data centres likely leading to rise in investor interest and improved supply addition. Strong revival in activity expected with the reopening of universities and workplaces which could spur demand in Student accommodation / co-living. REITs: Operational and financial performance to witness robust recovery; new REITs expected in office as well as retail and leasing sectors.

The commercial market across major Indian cities demonstrated resilience in 2024-25, despite global challenges. The average rentals grew appreciably driven by increased demand in key micro markets in various tier-1 and tier-2 cities. Mumbais office market experienced strong rental growth, with some reports indicating a year-on-year increase of 12%. This growth was fuelled by a surge in office leasing activity and a rise in new office supply. Specifically, Mumbai recorded a historic high in office transaction volumes, reaching 10.4 million square feet, a 40% increase compared to the previous year.

Office space indicates a positive demand side momentum; anticipated pickup in long-term decision-making by occupiers. Leasing activity to remain strong and next-gen logistics facilities will dominate supply pipeline. In retail space pent-up demand to spur activity across consumption categories; partnerships between digital and traditional retail brands to accelerate. Leasing is poised for sustained recovery, driven by Tech firms who would be the key drivers. Large institutional players will continue with green field investments via JVs/ partnerships/ platforms or brownfield investments via REITs, which in turn would also boost the upcoming supply in coming years. Occupier appetite for office space expansion would be strengthened & physical offices are here to stay, along with hybrid working.

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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 2024-25.

At Peninsula Land, we have an 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 committee conducts periodic reviews and is actively involved in identifying and addressing existing and potential risks, and deploying mitigation measures adopted by the Company.

Effective internal control systems are of paramount importance for Peninsula Land where every project demands a unique set of employees and partners. The Company, through a set of well-established internal control systems, promotes adherence to prescribed processes and procedures, ethical conduct, transparent and reliable reporting, and periodic monitoring by designated personnel. Peninsula Lands internal control system ensures timely recording of all transactions, maintenance of financial records, optimal utilisation of resources and preservation of assets. The Company has engaged a professional audit firm to carry out internal audits from time to time. The firm reviews the Companys adherence to Standard Operating Procedures (SOPs) across functions and reports gaps, if any, to the Audit Committee. In addition, it suggests benchmark policies followed in the sector to upgrade the methods/practices followed by the Company. At the beginning of each year, the Audit Committee, in consultation with independent internal auditors and the management, finalises the annual audit plan. The Committee also periodically reviews different risks and shares its finding with the management, and takes appropriate action post discussions.

We have a well-endowed work force of ~200 members spread across various geographies. Human capital has been one of the most crucial factors in our organisations growth story. The challenge of recruiting the right talent, developing them and retaining them has been at the forefront of Peninsulas Human Capital endowment strategy. Peninsula has always attracted the right talent pool over the years. Our values and culture are well communicated to all our employees and we offer equal opportunities to all its employees - with zero tolerance for discrimination on the basis of age, caste, religion, gender or marital status. We carry a passion to drive work which is well endowed by our philosophy of Passion at Excellence" which is much more than a phrase. We lay equal emphasis on recognising and rewarding zeal to excel through our dovetailed program of Rewards & Recognition. This echoes the talent and skills that employees bring to the table consistently to deliver superior quality work. We have embarked on the strategy unique to each project where dedicated separate team of professionals are earmarked for each project, with a separate project head which ensures delivery of superior quality products and fast tracking delivery of our superior edifices.

In FY 2024-25 Peninsula had to deal with handled challenges on operational fronts which were largely extraneous, and which impacted the financial and operational performance. The company relentlessly continued with its focus on initiatives to perform better on project execution and delivery, efficient working capital management, financial prudence and discipline, robust sales and collections. It made significant progress on new business development and growth initiatives as well as funding for growth. Going forward, we expect to continue to show improvements in performance and undertake new projects and business. With avenues for growth through the Real Estate Platform set up in joint venture with strategic partners, through private equity/debt involvement and institutional funding, we expect the growth to accelerate over the coming 2-3 years. We anticipate our business development activity to gather further pace and hope to add new projects to our portfolio. Given our existing pipeline, strong brand and an impressive performance over last 3 years, the outlook for FY 2025-26 remains positive though cautious and Peninsula believes that it remains well-positioned to benefit from emerging opportunities in the Indian real estate sector.

Certain statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be forward-looking statements within the meaning of applicable securities laws and regulations. Actual results could differ from those expressed or implied. Important factors that could make a difference to the Companys operations include labour and material availability, and prices, cyclical demand and pricing in the Companys principal markets, changes in government regulations, tax regimes, economic development within India and other incidental factors .

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 thereunder. Until and unless, explicitly registered / declared / stated on the official website of RERA, none of the images, material, projections, details, descriptions and other information that are mentioned in the Annual Report for the year 2024-25, should be deemed to be or constitute advertisements, solicitations, marketing, offer for sale, invitation to offer, or invitation to acquire within the 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 2024-25 to enable continuity of information to investors and shall not be construed to be of any relevance to home buyers / customers.