Praveg Ltd Management Discussions

The global economy in FY 2025-26 continued to navigate a complex landscape shaped by lingering geopolitical tensions, shifting global trade policy (including tariff-related uncertainty between major economies), and a gradual easing of monetary policy by major central banks as inflation moderated from its earlier peaks. According to the IMFs World Economic Outlook, global GDP growth is estimated at around 3.0%-3.2% for 2025, with a broadly similar pace of around 3.1%-3.3% projected for 2026. Advanced economies, including the US and parts of Europe, showed uneven but generally stable performance, supported by resilient labour markets even as growth momentum in some regions softened.

Emerging markets continued to anchor global growth, with India retaining its position as one of the fastest-growing major economies, recording an estimated real GDP growth rate of around 6.5%-6.8% for FY 2025-26 (as per RBI and IMF estimates). Growth continued to be driven by robust domestic consumption, sustained government capital expenditure on infrastructure, digitalisation, and policy reforms supporting manufacturing, exports, and renewable energy. India continued to attract strong foreign direct investment inflows, estimated at over USD 80-90 billion for the year, supported by a favourable demographic profile and expansion in services, technology, and green energy.

The countrys macroeconomic stability - including inflation broadly within the RBIs comfort band, foreign exchange reserves of approximately USD 690-700 billion, and a contained current account deficit - enabled it to withstand external headwinds better than many peers, reinforcing Indias appeal to global investors seeking stable, high-growth markets.

Global trade and travel showed continued, if uneven, recovery amid shifting tariff regimes and supply chain realignment. According to the WTO, global merchandise trade volume growth is estimated at around 2%-3% for 2025, with a similar outlook for 2026, refecting cautious but steady momentum. International tourism and business travel continued to normalise, benefitting Indias hospitality and aviation sectors. Overall, while global uncertainties - particularly around trade policy and geopolitical risk - persist, Indias strong macroeconomic fundamentals and sustained growth momentum continue to reinforce its role as a key contributor to global economic stability and expansion.

India retained its position as one of the fastest-growing major economies in FY 2025-26, demonstrating resilience amid global trade and geopolitical uncertainties. Economic momentum was driven by strong domestic consumption, healthy growth in manufacturing and services, and continued government capital expenditure on infrastructure such as roads, railways, ports, and smart cities. Indias GDP is estimated to have expanded by 6.5%-7.0% in FY 2025-26, supported by inflation that eased further to around 4%-4.5% through the year, aided by softer food prices and stable monetary policy, and by comfortable foreign exchange reserves.

The Governments continued focus on structural reforms, digitalisation, and ease of doing business sustained investor confidence, attracting both domestic and foreign capital. Key policy measures such as the Production Linked Incentive (PLI) schemes and sector-specific reforms across electronics, renewable energy, and semiconductors continued to support manufacturing output and exports, which are estimated to have reached approximately USD 820-850 billion during the year. Despite global headwinds - including tariff-related trade friction and geopolitical uncertainty - India maintained macroeconomic stability with a manageable fiscal deficit, a resilient banking system, and buoyant investor confidence. Positive demographic trends, an expanding middle class, and a growing digital economy continued to underpin growth. Indias nominal GDP is estimated to have crossed approximately USD 4.3-4.5 trillion in FY 2025-26, keeping it firmly positioned among the worlds largest economies.

The Governments continued thrust on tourism promotion, MSME development, and the startup ecosystem created further avenues for employment generation and inclusive growth. Going forward, Indias strong fundamentals, policy stability, and emphasis on innovation, manufacturing self-reliance, and sustainability are expected to reinforce its position as a key driver of global growth and an attractive destination for long-term investment.

The Indian hospitality and tourism industry sustained its growth momentum through FY 2025-26, supported by resilient domestic demand and a gradual, steady increase in inbound travel. Domestic travel continued to be the primary growth driver,

propelled by an aspirational middle class, rising disposable incomes, and improved connectivity. According to the Ministry of Tourism, domestic tourist visits are estimated to have crossed, while foreign tourist arrivals are estimated at around. Government-led initiatives, including destination development under schemes such as Dekho Apna Desh and the Special Assistance for building tourism infrastructure, the development of regional tourism circuits, and continued investment in last- mile connectivity — played a pivotal role in encouraging both inter-state and intra-state travel. Tier II and Tier III cities, along with emerging leisure and wellness destinations, continued to widen the industrys footprint, driving demand for quality accommodation and experiential offerings beyond traditional metro hubs.

Hotels and resorts across categories reported healthy occupancy and continued pricing power. Nationwide hotel occupancy is estimated at around 65%-70%, with Revenue per Available Room (RevPAR) growth in the range of 8%-12%, year-on-year, according to industry reports (HVS Anarock, Hotelivate, and similar sources). Upscale and luxury segments continued to see strong demand, supported by corporate travel, destination weddings, MICE (Meetings, Incentives, Conferences, Exhibitions) events, and steady inbound tourism.

Evolving consumer preferences towards sustainability, wellness, and immersive travel experiences continued to shape the sector. Eco-friendly resorts, adventure tourism, wellness retreats, and heritage stays continued to gain traction among travellers seeking authenticity and responsible travel options.

Technology adoption and digital transformation continued to reshape the industry, with growing reliance on online booking platforms, AI-driven guest services and personalisation, contactless check-ins, and customisable travel solutions enhancing both operational efficiency and guest experience.

Amid this promising backdrop, Praveg Limited, with its diversified presence across exhibitions, tourism infrastructure, and distinctive resort properties, continues to be strategically positioned to capitalise on the sectors sustained growth momentum. By leveraging its expertise in curating experiential offerings and building on strategic partnerships, the Company aims to capture emerging opportunities, deepen its geographic presence, and deliver consistent value to stakeholders as Indias hospitality and tourism landscape continues to evolve.

Praveg Limited continues to strengthen its position as a leading player in the exhibitions, hospitality, and advertising sectors. The Companys strategic initiatives, including targeted acquisitions, meaningful partnerships, and steady organic expansion, provide a robust foundation for sustained long-term growth.

With the resurgence of domestic and international travel, increasing consumer spending, and the growing demand for unique experiential events and high-quality hospitality services, the Company is well-placed to capitalize on emerging market opportunities. Pravegs recent collaborations and investments in new properties and service offerings are expected to drive revenue growth and enhance its brand presence across India and key global markets.

The management remains confident of leveraging favourable industry trends, expanding its footprint into untapped geographies, and diversifying its portfolio to meet evolving customer preferences. Continued focus on innovation, operational excellence, and digital transformation will further strengthen the Companys competitive edge.

Backed by its dedicated workforce, strong financial position, and clear strategic roadmap, Praveg Limited is committed to delivering sustained value to all stakeholders and aims to achieve new milestones in its growth journey in the years to come.

The Audited Financial Statements of the Company as on March 31,2026, are prepared in accordance with the relevant applicable IndAS and Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI Listing Regulations") and the provisions of the Companies Act, 2013 ("Act").

On a standalone basis, the Company recorded Revenue from Operations of Rupees 18,362.25 lakhs during FY 2025-26 as against Rupees 13,262.73 lakhs in the previous financial year, representing an increase of approximately 38.45%.

During the year under review, total expenses increased to Rupees 19,408.51 lakhs as compared to Rupees 12,331.13 lakhs in the previous year. The increase in expenses was primarily reflected across cost of operations and food consumed, employee benefit expenses, financial costs, depreciation and amortisation expenses and other expenses.

As a result, the Company recorded a Loss before Tax of Rupees 933.59 lakhs as against a Profit before Tax of Rupees 1,628.43 lakhs in the previous year. After considering tax expenses of Rupees 275.36 lakhs, the Company reported a Loss for the year of Rupees 1,208.95 lakhs, as compared to a Profit of Rupees 1,286.29 lakhs in FY 2024-25.

On a consolidated basis, the Group recorded Revenue from Operations of Rupees 24,094.37 lakhs during FY 2025-26 as against Rupees 16,717.60 lakhs in FY 2024-25, representing an increase of approximately 44.13%. Total Income increased to Rupees 24,243.66 lakhs from Rupees 17,443.01 lakhs in the previous year.

The consolidated total expenses increased to Rupees 24,759.52 lakhs during FY 2025-26 from Rupees 15,344.85 lakhs in the previous year. Consequently, the Group reported a Loss before Tax of Rupees 515.87 lakhs, as against a Profit before Tax of Rupees 2,098.15 lakhs in the previous year.

After considering tax expenses of Rupees 481.00 lakhs, the consolidated Loss for the year stood at Rupees 996.86 lakhs, as compared to a Profit of Rupees 1,604.84 lakhs in FY 2024-25. The Total Comprehensive Income attributable to the Group for the year was a loss of Rupees 985.05 lakhs, as against Total Comprehensive Income of Rupees 1,613.42 lakhs in the previous year.

The Company witnessed a significant growth in its Revenue from Operations during FY 2025-26 on both standalone and consolidated bases. However, the increase in operating and other expenses, together with the reduction in Other Income, resulted in the Company reporting a loss during the year under review as against a profit in the previous financial year.

The Management continues to remain focused on strengthening operational efficiency, improving cost management, enhancing revenues and taking appropriate measures for sustainable and profitable growth of the Company and its businesses. The Company remains committed to strengthening its operational and financial performance in the coming years.

During the Financial Year 2025-26 and subsequent to the close of the financial year up to the date of this Report, the Company continued to focus on strengthening its hospitality, tourism and experiential infrastructure portfolio, expanding its presence across strategic destinations and pursuing opportunities for sustainable growth. The significant developments during the year under review and thereafter are as under:

During the year under review, the Company continued to expand and strengthen its portfolio of luxury resorts, tourism destinations, theme parks and hospitality projects across various locations in India. The Company commenced operations at Praveg Adalaj Theme Park, developed through its wholly owned subsidiary, Praveg Adalaj Tourism Infrastructure Private Limited, under a Public-Private Partnership arrangement. The project commenced operations in September 2025 and is intended to provide premium tourism, hospitality and event-related experiences. Moreover, White Rann Resort has been awarded an extension of 252 beds for 30 years.

During February 2026, the Company received a Letter of Award from the Directorate of Tourism, Government of Meghalaya, for the Development, Operation and Maintenance of Luxury Cottages at Umiam, Meghalaya, under the Design, Build, Finance, Operate and Transfer (DBFOT) mode on a Public-Private Partnership basis. The project envisages development and operation of a minimum of 40 luxury cottages on approximately 10 acres of land, together with allied amenities and supporting infrastructure, with a concession period of 30 years. The project is expected to further strengthen the Companys presence in the North-Eastern region and contribute to its long-term growth strategy.

Subsequent to the end of the financial year, the Board of Directors, at its meeting held on July 22, 2026, approved the issuance of up to 8,33,700 Equity Shares and 11,00,000 Convertible Warrants on a preferential basis, subject to applicable statutory and regulatory approvals, including approval of the shareholders and such other approvals as may be required. The proposed issue is intended to strengthen the capital base of the Company and support its growth and expansion plans.

Subsequent to the close of the financial year, the proposed Scheme of Arrangement for amalgamation of Eulogia Inn Private Limited ("Transferor Company") with Praveg Limited ("Transferee Company") and their respective shareholders and creditors progressed further. The Ahmedabad Bench of the Honble National Company Law Tribunal ("NCLT"), vide its order dated June 4, 2026, directed the convening of meetings of the Equity Shareholders and Creditors of the respective companies.

Pursuant thereto, the meetings of the Equity Shareholders and Creditors of the Company and the Transferor Company were convened and held on July 18, 2026, wherein the Scheme of Arrangement was duly approved by the requisite majority of the Equity Shareholders and Creditors of the respective companies, in accordance with the applicable provisions of the Companies Act, 2013 and the directions of the Honble NCLT.

The Scheme is presently subject to the receipt of the requisite approvals and sanctions from the Honble NCLT and other statutory, regulatory and governmental authorities, as may be applicable. The Company continues to take necessary steps for obtaining the requisite approvals and giving effect to the Scheme in accordance with applicable laws.

The Companys diversified operations remain exposed to external risk factors, including shifts in economic conditions, competitive pressures, regulatory developments, and unforeseen global disruptions. Management continues to follow robust risk management practices and adapts its strategies proactively to address these risks.

Praveg Limited maintains a comprehensive framework of internal controls designed to support operational efficiency, protect Company assets, guard against fraud and errors, and ensure adherence to statutory and regulatory requirements as well as internal corporate policies.

Underpinned by a resilient business model, a clear strategic direction, and supportive industry dynamics, Praveg Limited remains confident of sustaining its growth momentum. The Company remains committed to building long-term stakeholder value through disciplined execution, sound governance, and responsible business conduct.

As of March 31, 2026, the Companys workforce stood at over 1,024 employees, playing a central role in driving its wide- ranging operations across the tourism and hospitality space. Recognising its people as the foundation of its growth, the Company continued to strengthen its human resource practices through several initiatives — including refinements to the Performance Management System to better align individual and organisational goals, an expanded Reward & Recognition programme to acknowledge outstanding performance, and continued efforts to foster a transparent and participative workplace culture built on open communication and collaboration.

During the year, the Company rolled out ESOP 2024, granting fresh stock options to eligible employees as part of its continued efforts to attract, motivate, and retain talent while aligning employee interests with long-term shareholder value creation. Employee relations remained cordial and stable throughout the year, supported by sustained engagement and development initiatives.

Statements contained in this Management Discussion and Analysis relating to the Companys objectives, projections, estimates, and expectations may constitute forward-looking statements within the meaning of applicable securities laws and regulations. Such statements are based on certain assumptions and expectations of future events, and actual results may differ materially from those expressed or implied herein. Several factors could influence the Companys actual performance and results, including, but not limited to, fluctuations in earnings, the Companys ability to manage its growth effectively, competitive pressures within the industry, the pace of economic growth in India, the ability to attract and retain skilled professionals, potential time and cost overruns on projects and contracts, and changes in government policies, regulations, fiscal deficits, and investment-related actions, among other factors.