Puravankara Ltd Management Discussions

In FY 2024–25, the Indian economy demonstrated resilience amid global uncertainties. The National Statistical Office

(NSO) projects a GDP growth of 6.5%, driven by robust domestic consumption, infrastructure investments, and a rebound in rural demand. This growth is supported by strong performances in the construction, trade, and financial services sectors. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2113316&utm_ source

This growth momentum is underpinned by strong domestic demand, strategic government-led infrastructure investments, and a stable macroeconomic framework. Flagship initiatives like the National Infrastructure Pipeline (NIP) and National Monetisation Pipeline (NMP) are expected to catalyse private sector participation, addressing the rising need for large-scale infrastructure development. Additionally, the PM Gati Shakti programme, which integrates key transport modes—including aviation, railways, roads, and waterways—represents a transformative step in enhancing multimodal connectivity and accelerating infrastructure-led growth.

Inflationary pressures eased considerably, with the Consumer Price Index (CPI) declining to 3.16% in April 2025 its lowest level since July 2019 and below the Reserve Bank of Indias (RBI) medium-term target of 4%. The moderation was primarily driven by a sharp drop in food inflation, which fell to 2.69%, supported by declining prices of vegetables and pulses.

Notably, vegetable prices entered deflation, recording a YoY decrease of 7.04%.Inflation in the fuel and light category also remained subdued at 1.48% in March 2025. This broad-based softening of price pressures provides the RBI with greater policy flexibility to explore further monetary easing in support of economic growth.

Amid a stable inflationary environment and improving macroeconomic indicators, the Reserve Bank of India (RBI) adopted a more accommodative policy stance in its June 2025 meeting. It announced a sharper-than-anticipated 50 basis point reduction in the repo rate, bringing it down to 5.50%, alongside a 100 basis point cut in the Cash Reserve Ratio (CRR) to 3%. This decisive intervention aims to reinvigorate credit demand, boost consumer spending, and accelerate the pace of economic recovery. The move has already begun to reflect in lower interest rates across key lending categories such as retail loans, housing finance, and MSME credit. With several major banks adjusting their lending rates downward, borrowers are benefitingfrom reduced EMIs and improved access to finance. The RBIs shift towards a growth-oriented monetary policy signals a strategic push to strengthen economic momentum through FY 2025–26.

https://www.reuters.com/world/india/indias-april-retail-inflation-eases-316-yy-2025-05-13/?utm_source https://www.moneycontrol.com/economic-indicators/india-inflation-rate-5128767?utm_source

Infrastructure development remains a cornerstone of Indias growth strategy. The Union Budget in FY 2024 25 allocated 11.11 Lakh Crore towards capital expenditure, marking an 11.1% increase from the previous year, which accounts for 3.4% of GDP. Approximately 47% of this investment is directed towards transport infrastructure, including roads, railways, and ports, aiming to enhance connectivity and support economic expansion. https://assets.kpmg.com/content/dam/kpmgsites/in/pdf/2024/07/ public-infrastructure-pov-union-budget-2024-25.pdf.coredownload. inline.pdf?utm_source

Indias industrial sector is projected to expand by 6.2%, supported by robust performance in construction, electricity, gas, water supply, and other utility services. The manufacturing segment, in particular, is positioned for substantial growth, with its share in Gross Value Added (GVA) anticipated to rise from 14% in FY 2024 25 to 21% by 2032, reflecting the sectors term economic development.

The services sector continues to be a significant to the economy, with services export growth surging to 12.8% during April November FY 2024-25, up from 5.7% in FY 2023- 24. This robust performance underscores Indias position as a global services hub. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2097921&utm_ source

INDUSTRY OVERVIEW

Indias real estate sector is set for extraordinary expansion, with the market estimated at USD 332.85 Billion in FY 2024-25 and projected to reach USD 985.80 Billion by 2030, reflecting a robust CAGR of 24.25% during this period. The industry momentum in FY 2023-24 has been underscored by strong growth across residential, commercial, and premium segments. Residential sales surged 17% YoY in the first three quarters of 2024, driven by heightened buyer increased demand for premium housing in key urban centers such as Mumbai, Bengaluru, and Pune. Notably Bengaluru residential prices climbed by 9% while Mumbai, NCR and Pune saw 4-5% increase, highlighting pronounced growth in the luxury and premium markets.

Indias real estate sector is entering a pivotal phase of transformation, with FY 2025-26 expected to mark a significant and contributed approximately 7% to the nations GDP in FY 2023-

24, the sectors contribution to GDP is projected to expand from 7% in FY 2023 24 to 13% by FY 2024 25 and further to 18% by 2047. This growth is driven by urbanisation, infrastructure development and evolving consumer preferences. https://www.thehindu.com/real-estate/real-estate-properties-construction-buildings-2025/article69028297.ece

Indias residential real estate sector is expected to witness steady growth in FY 2025 26. Housing sales volumes across the top seven cities are projected to rise by 1 4%, supported by sustained end-user demand. Concurrently, new supply is anticipated to expand by 6 9%, with project launches estimated to reach approximately 620–640 Million sq. ft. during the fiscal. Average selling prices are also expected to appreciate by 3 5%, driven by the rising share of premium inventory and continued buyer interest in well-located, quality developments. https://economictimes.indiatimes.com/industry/services/property-/-cstruction/icra-projects-1-4-pc-increase-in-housing-sales-volume-in-fy26-6-9-pc-rise-in-launches/articleshow/120062785.cms?utm_ source=chatgpt.com&from=mdr

The commercial real estate sector continues to demonstrate resilience with strong demand for office spaces, particularly IT centric markets such as Bengaluru and Hyderabad. Leasing activity and the absorption of Grade A office developments are witnessing consistent growth, driven by optimistic projections for co-working and flexible workspace solutions. Looking ahead, Indias urbanisation is set to accelerate, with 50% of the population expected to reside in urban centres by 2047. This demographic shift will drive substantial demand for residential, office and retail spaces. Additionally, emerging segments such as senior living, co living and data centers are anticipated to witness exponential growth, with real estate demand for data centers projected to increase by 15-18 Million sq. ft. by FY 2024-25.

The luxury residential sector has experienced robust growth in FY 2023-24, maintaining its position as a key demand center, driven by high-net-worth individuals and discerning professionals seeking premium living experiences. The market focus has been on delivering high-end residences that seamlessly blend sophisticated design, state-of-the-art amenities, and sustainable practices. Looking ahead to FY 2025-26, the sector aims to expand its luxury portfolio to align with the evolving expectations of modern homebuyers. With a continued emphasis on quality, innovation, and lifestyle enhancement, the segment is well-positioned to redefine contemporary urban living and cater to the aspirations of the next generation of residents.

https://www.mordorintelligence.com/industry-reports/real-estate-industry-in-india https://www.business-standard.com/content/press-releases-ani/2024-a-year-of-transformation-and-growth-in-indian-real-estate-124123100794_1.html

Indias Housing Sector

Indias housing sector is positioned for substantial growth, underpinned by rapid urbanisation, technological advancement and shifting consumer preferences. The sector is projected to contribute 13% to the national GDP by 2025 and expand to $ 1 Trillion market by 2030. This growth is being shaped by favourable policy reforms, demographic dynamics and alignment with global real estate trends, reinforcing the sectors critical role in driving economic development. https://www.financialexpress.com/money/indias-housing-market-in-

2025-a-transformation-on-the-horizon-3693000/

Demand for Affordable Housing

The cumulative demand for affordable housing in India is projected to reach 31.2 Million units by 2030, with a market size estimated at 67 Lakh Crore.

Government Initiatives

The Union Budget 2025 has introduced key reforms to boost the real estate sector, most notably the launch of SWAMIH Fund 2 — a 15,000 Crore blended finance initiative designed to accelerate the completion of stalled housing projects and offer much-needed relief to homebuyers. Building on the success of the original SWAMIH initiative, which delivered 50,000 homes and is set to complete another 40,000 units in 2025, the new fund aims to enable the completion of an additional one Lakh housing units. This move is expected to benefit thousands of families awaiting possession while restoring liquidity and investorconfidence in the sector.

Feature	Details
Fund Name	SWAMIH Fund 2
Announced In	Union Budget 2025
Total Allocation	15,000 Crore
Objective	Complete 1 Lakh stalled housing units
Beneficiaries	Middle-class homebuyers facing delayed possession
Financial Contributors	Government, banks, and private investors
Execution Body	SBICAP Ventures Ltd (State Bank Group)
Impact on Real Estate	Increased liquidity and buyer confidence

https://www.ey.com/en_in/technical/alerts-hub/2025/02/budget-2025-real-estate-sector https://realty.economictimes.indiatimes.com/news/industry/real-estate-budget-2025-swamih-fund-2-0-announced-to-revive-stalled-housing-projects/117823833

PMAY-U 2.0: The government has launched the Pradhan Mantri awas Yojana Urban 2.0 (PMAY-U 2.0) aiming to provide affordable housing to 1 Crore urban poor and middle-class families with an investment of 10 Lakh Crore ($120.16 Billion). This initiative focuses on the goal of "Housing for All," leveraging subsidies, building public private relationships, and prioritizing the construction of sustainable, energy efficient housing units. https://realty.economictimes.indiatimes.com/news/industry/what-real-estate-industry-gained-in-budget-2025/117822843

Emerging Growth Hubs: Rise of Tier II and Tier III Cities

Tier II and Tier III cities such as Jaipur, Indore and Kochi are rapidly emerging as key drivers of residential growth, expected to account for over 40% of new housing developments by FY 2024-25. Factors such as enhanced infrastructure, competitive land pricing and government initiatives like smart cities mission, Bharatmala and Gati Shakti are accelerating this shift. Indore is projected to attract over 1,00,000 new residents each year by FY 2024-25, solidifying its position in the real estate hubs in the country. https://www.financialexpress.com/money/indias-housing-market-in-2025-a-transformation-on-the-horizon-3693000/

Smart Cities & Sustainability Projects

Sustainability remains a centre pillar of Indias infrastructure.

The union budget in FY 2025-26 allocated 1.5 Crore-a 25% increase over the previous year for sustainable infrastructure projects, with 50,000 Crore earmarked for climate resilience, projecting 8-10% CAGR in the infrastructure sector over the next decade. Key priorities include increasing renewable energy capacity to 50% by 2030 and developing 100 sustainable smart cities aimed at reducing urban carbon emissions by 20-25%. https://lsigroup.in/sustainable-development-in-infrastructure.html

Under the Government of Indias Smart Cities Mission, 8066 projects have been sanctioned across 100 cities, with 91 % already completed. Key milestones include the establishment of Integrated command and Control Centres (ICCCs) in all 100 cities, deployment of CCTV cameras, emergency call boxes and public address systems. The mission also delivered smart roads, cycle tracks, SCADA- enabled water supply networks.

Solid waste management system has been modernised in 66 cities with RFID enabled vehicles. Additionally smart classrooms, digital libraries, e-health centres, ATMs have been set up-demonstrating a transformative impact on urban - infrastructure and citizen services. https://lsigroup.in/sustainable-development-in-infrastructure.html

Taxation and GST

GST on property in India primarily applies to under-construction properties, with standard residential units attracting a 5% GST rate and affordable housing taxed at 1%, both without Input Tax Credit (ITC). Commercial properties are generally subject to a 12% GST rate, with ITC benefits available. Importantly, GST does not apply to ready-to-move-in or completed properties, as these are treated as transactions in goods rather than as a supply of services. These are intended to simplify taxation, reduce the burden on buyers, and increase transparency in property transactions.

COMPANY OVERVIEW

Established in 1986, we at Puravankara Limited are proud to be among Indias most reputed and leading real estate developers, with a legacy of nearly four decades. Over the years, we have built a robust presence across key metropolitan cities such as Bengaluru, Chennai, Hyderabad, Kochi, Mumbai, Pune, and Mysore, while progressively expanding our footprint in

Western India.

We operate through a well-diversifiedportfolio that caters to multiple customer segments. This includes luxury and premium residential developments, premium affordable housing under the ‘Provident brand, and plotted developments through ‘Purva Land. As of March 31, 2025, we have successfully delivered 90 projects, encompassing over 52.74 Million sq. ft. of completed developable area. In addition, 36.8 Million sq. ft. is under active development, supported by a land bank of 24.56

Million sq. ft., taking our total development pipeline to 78.06 Million sq. ft., including land under clearance. Established in 1986, we at Puravankara Limited are proud to be among Indias most reputed and leading real estate developers, with a legacy of nearly four decades. Over the years, we have built a robust presence across key metropolitan cities such as Bengaluru, Chennai, Hyderabad, Kochi, Mumbai, Pune, and Mysore, while progressively expanding our footprint in Western India. We operate through a well-diversifiedportfolio that caters to multiple customer segments. This includes luxury and premium residential developments, premium affordable housing under the ‘Provident brand, and plotted developments through ‘Purva Land. As of March 31, 2025, we have successfully delivered 90 projects, encompassing over

52.74 Million sq. ft. of completed developable area. In addition,

36.8 Million sq. ft. is under active development, supported by a land bank of 24.56 Million sq. ft., taking our total development pipeline to 78.06 Million sq. ft., including land under clearance.

Our business strategy is anchored in product innovation, customer-centricity, and operational excellence. With differentiated offerings that cater to a wide spectrum of homebuyers from aspirational first-time owners to luxury seekers—we have ensured resilience across market cycles. Our pan-India expansion is underpinned by disciplined capital management and strategic alliances with marquee institutional partners such as Standard Chartered Bank, Tata Capital Limited, and HDFC Capital. We remain steadfast in our focus on enhancing operational efficiency, driving digital transformation, and embedding sustainability across our value chain reflecting corporate governance and long-term value creation for all stakeholders.

With a robust pipeline of planned launches, especially in the high-potential Mumbai and Pune markets, along with a healthy mix of ongoing projects across geographies and price segments, we are well-positioned to capitalise on Indias resilient real estate demand and drive sustainable growth in the coming years.

PURAVANKARA BUSINESS OVERVIEW

At Puravankara Limited, one of Indias most trusted and longstanding real estate developers, we continued to build on our legacy in FY 2024–25 with a strategic focus on product diversification, pan-India expansion, and disciplined capital deployment. Incorporated in 1986, we have grown our presence across nine key Indian cities Bengaluru, Chennai, Hyderabad,

Pune, Mumbai, Kochi, Goa, Mysore, and Mangalore—and have also expanded internationally with ongoing interest in

Colombo.

With over 52.74 Million sq. ft. of completed developable area and an additional 36.80 Million sq. ft. under active development, we operate through three differentiated brands: Puravankara – catering to the luxury and premium residential segments Provident Housing – focused on premium affordable commitment tohousing sound

Purva Land – specialising in plotted developments

As of March 31, 2025, our economic interest in the land bank stood at 21.98 Million sq. ft. During FY 2024 25, we invested approximately 1,284 Crore in land acquisitions, adding around 8 Million sq. ft. of developable area with an estimated

Gross Development Value (GDV) exceeding 13,000 Crore. These investments further reinforce our commitment to building a robust and future-ready development pipeline. In FY 2024–25, we delivered a resilient performance amidst a challenging macroeconomic environment, achieving total sales bookings of 5,006 Crore, backed by a sales volume of 5.67 Million sq. ft. and customer collections of 3,937 Crore. Our average realisation improved to 8,830 per sq. ft., reflectinga 10% YoY growth, driven by strategic pricing actions and sustained demand across product categories. Our total income for the year stood at 2,093 Crore, with an EBITDA margin of 18%. We reported a Loss After Tax of 186 Crore, compared to a profit 42 Crore in FY 2023 24.

This was primarily due to higher input costs, increased land acquisition expenditure, and marketing investments aligned with our strong future launch pipeline.

While our sales volume declined 23% YoY, attributable to fewer new project launches during the year, this was significantly offset by improved pricing and strong sustenance sales—especially under the ‘Puravankara and ‘Provident Housing brands. Our business fundamentals remain robust, supported by a healthy mix of projects across geographies, a rising share of Western markets, and a solid upcoming launch pipeline for

FY 2025–26.

Ratio	FY 2024-25	FY 2023-24
Debt Equity Ratio	1.36	1.15
Current Ratio	1.02	1.03
EBITDA Margin	5.25%	23.75%
Net Profit Margin	-22%	3%
Return on Capital Employed	(0.06)	0.02
Debtors Turnover Ratio	4.24	3.61
Inventory Turnover Ratio	0.13	.16
Sales Performance	FY 2024-25	FY 2023-24
Sales Value ( Crore)	5,006	5,914
EBITDA Margin ( Crore)	48.19	262.63
Average price realisation ( per sq. ft)	8,830	8,035

In Purva Land, despite a YoY decline in volume due to fewer new launches, our higher price realisations across segments and geographies reflected our brand strength and pricing power. Sustenance sales contributed significantly, particularly the Provident and Puravankara brands, driven by strong demand in the mid-income and aspirational segments.

Our growing presence in Western India, particularly Mumbai and Pune, is underpinned by a robust planned development pipeline of 9.22 Million sq. ft., with 21% concentrated in these two key markets. Redevelopment continues to be a strategic growth lever, with approximately 1.34 Million sq. ft. of projects in Mumbai at various stages of execution and discussion—reflecting our deeper penetration into high-value urban micro-markets.

Our capital strategy remains focused on maintaining a balanced debt profile, supported by strong project-level cash for flows and efficient 15,949 Crore in estimated surplus cash flows from ongoing, pipeline, and commercial projects, providing a robust buffer against financial risk and enabling future growth.

Looking ahead, we are strategically positioned to drive scale, profitability, and shareholder value through disciplined execution, a robust launch pipeline, and a sustained focus on operational excellence, digital transformation, and green building initiatives.

HUMAN RESOURCES

Acknowledging and appreciating Long Tenured Employees

Organisational trust is fundamental to fostering employee commitment, engagement, and a strong sense of belonging. At Puravankara, we recognise that a trusted workplace environment is key to enhancing job satisfaction, loyalty, and long-term retention. As part of our efforts to cultivate this culture, we celebrate and acknowledge the contributions of our long-serving employees through the ‘Simply Inspiring series a platform that profiles individuals who have demonstrated enduring dedication to the organisation. As of FY 2024 25, 64 of our employees have completed 10 to 20 years of service and 14 employees have achieved more than 20 years of service with Puravankara, reflecting the strength

Accelerated Improvement with Learning & Development

We at Puravankara believe that fostering a culture of continuous learning is fundamental to both organisational growth and individual development. By seamlessly integrating learning into our daily operations, we ensure it evolves into an ongoing journey rather than a one-time initiative deeply embedded within our organisational fabric. Learning and development play a pivotal role in enhancing employee capabilities, expanding knowledge, and strengthening professional competencies. Our commitment to continuous upskilling not only supports career advancement but also maximises the potential of our human capital, thereby reinforcing business performance.

Our Learning & Development (L&D) initiatives are strategically alignedwithidentifiedtraining needs across the organisation. These efforts include targeted programmes in areas such as sales effectiveness, MS Office and Excel proficiency, impactful workplace working capital cycles. We have visibility of communication, and innovative thinking. We also conduct group-wide workshops to ensure employees are equipped with the skills necessary to excel in their roles and contribute meaningfully to Puravankaras long-term success.

Launch of Integrated HR Solution

We have implemented greytHR, a comprehensive Human Resource Management System (HRMS) that provides a unified platform to seamlessly manage the entire employee lifecycle. This integrated solution ensures smooth data flow across HR modules, improving coordination and enhancing operational efficiency. Designed with mobility in mind, the platform is smartphone-enabled, empowering our employees with convenient access to core HR functionalities anytime, anywhere.

Attendance and Leave Management: Our system supports a wide range of scenarios, including time-in/time-off tracking, attendance regularisation, and leave applications—all accessible with a single click Employee Self-Service (ESS) Portal: Employees can independently manage documentation such as address proof and their personal data whenever required employment Role-Based Access Control: We ensure secure and structured access through role-based permissions, providing functionality tailored tospecific roles and responsibilities user Access to HR Policies: Our employees have continuous access to HR policies, enabling them to conveniently review relevant guidelines and procedures at any time

Employee Centric Insurance Policies

We are deeply committed to the well-being of our workforce and their families, and we extend this care through a comprehensive, employee-centric insurance policy. Our tailored group health insurance plan covers employees and their dependents, including in-laws, providing financial security during unforeseen medical Ambulance Charges: Covered up to 1% of the sum insured, with a maximum cap of 2,500 per hospitalisation AYUSH Treatments: Included for procedures undertaken at government-recognised hospitals, up to 25% of the sum insured, with a ceiling of 25,000 Vision Care: Coverage for Lasik surgery (for eye power above +/-7.5) and cataract treatment up to 50,000 per eye Family Transportation Support: Medical-related transportation expenses for family members are covered up to 5,000 Corporate Buffer:Provision of a corporate buffer facility in cases where medical expenses exceed the base sum insured, ensuring additional protection This comprehensive policy underscores our commitment to providing robust healthcare support while fostering a secure and supportive workplace environment.

Employee Well-Being

Employee well-being remains one of our key focus areas at Puravankara, as we believe it directly contributes to higher productivity, engagement, and retention. We recognise that a supportive environment nurturing physical, mental, and emotional health leads to improved performance, reduced absenteeism, and a stronger organisational culture.

To promote holistic wellness, we conduct regular health camps and have partnered with Arogya World, a global nonprofit focused on preventing non-communicable diseases (NCDs). Through this collaboration, we organise periodic workshops and webinars on topics such as healthy eating, nutrition, and lifestyle management—reinforcing our commitment to building a healthier and more resilient workforce.

Maternity Benefits

We recognise the importance of fostering a supportive environment that enables our employees to effectively balance their personal and professional responsibilities. In addition to statutory maternity benefits, we offer flexible work arrangements for new mothers, including the option to work from home—allowing them to cherish time with their newborn while staying connected to their careers. This initiative reflects our broader commitment to employee well-being, satisfaction, and diversity across the organisation.

Celebrating Festivals

With our presence in nine cities and a culturally diverse workforce, we actively celebrate regional and national festivals to foster inclusivity and workplace camaraderie. Key celebrations across our offices include Sankranthi, Ganesh Chaturthi, and Diwali, complemented by engaging activities such as Secret Santa during the holiday season and themed dress codes during Navaratri. These initiatives promote a festive atmosphere and strengthen employee bonds.

Employee Engagement Activities

Creating an engaging and energising workplace is central to our employee-first philosophy. Throughout the year, we organise various employee engagement initiatives, including theme-based activities, talent shows, and wellness sessions, aimed at enhancing morale and strengthening team dynamics.

We conduct monthly team-building activities across project offices to improve collaboration, encourage innovation, and enhance productivity. These efforts contribute to a positive work culture—reducing stress, improving service quality, increasing employee commitment, and minimising absenteeism and turnover.

By investing in engagement and cultural initiatives, we reaffirm our commitment to nurturing a workplace where employees are empowered to thrive—both personally and professionally.

Purava Champion

The Purva Champion Programme is our innovative internal referral initiative that empowers us, as employees, to actively contribute to the Companys growth. Under this programme, we are eligible to receive a 2% referral benefit on the essential cost of every apartment booking made through our referral.

This initiative not only incentivises participation but also instils in us a deeper sense of ownership and pride in the brand. By encouraging us to leverage our personal networks and promote our offerings, the programme fosters a culture of collaboration, recognition, and shared success.

Through such engagement-driven programmes, we reinforce employee value, enhance job satisfaction, and strengthen our organisational culture—transforming each of us into proud ambassadors of the Puravankara brand

Leadership Development Programme

At Puravankara Limited, we recognise that effective leadership is fundamental to shaping our organisational culture and driving long-term success. As leaders, we play a pivotal role in cascading core values across the organisation, setting the tone for behaviours, priorities, and performance.

In line with this belief, we have invested in the continuous development of our senior leadership team by sponsoring participation in prestigious executive education programmes at globally renowned institutions such as Harvard Business School and IIM Bangalore. These programmes equip us with advanced strategic insights, global perspectives, and contemporary management skills.

This initiative reflects our commitment to cultivating a high-performing leadership bench that is deeply aligned with our values and long-term vision. By empowering our leaders, we enable them to inspire, engage, and guide their teams more effectively ensuring organisational resilience and agility in a dynamic business environment.

RISKS & CONCERNS

Market Price Fluctuation

Our performance is inherently linked to the sales and rental realisations of our projects, which are shaped by prevailing market dynamics, project location, product positioning, and brand equity. Recognising these factors, we follow a prudent and resilient business model designed to maintain healthy cash flows and

Sales Volume

Our booking volumes are driven by our ability to conceptualise and deliver projects that resonate with evolving customer preferences, secure timely regulatory approvals, and navigate prevailing market dynamics. Early-stage customer confidence, particularly in entering into sale agreements prior to possession, remains a key determinant. To optimise sales momentum and price realisation, we adopt a phased launch strategy—carefully calibrated to project type, scale, and market conditions.

Execution

Project execution is contingent on multiple factors, including workforce availability, raw material pricing, regulatory approvals, utility access, weather conditions, and legal clearances. We mitigate these risks through meticulous planning, engagement with reputed contractors, and a disciplined execution framework. Given the import dependence for certain materials, timely shipments and clearances also remain critical to maintaining our project timelines.

Land/Developmental Rights Cost & Availability

Land acquisition constitutes a substantial component of our overall project costs, particularly in high-value markets such as

Mumbai. These costs include payments for freehold and leasehold rights, fungible FSI, construction obligations toward landlords under development agreements, as well as applicable registration and stamp duties. We source land or development rights from both government and private entities, ensuring that the consideration is market-aligned, reasonable, and strategically timed. In many instances, we enter into Memorandums of Understanding (MoUs) and advance funds prior to finalisingdefinitive agreements.

These negotiations may culminate in either the successful acquisition of land or development rights, or the refund of the advance, depending on the outcome of the transaction process.

Finance Costs

Land and development rights acquisition entails significant capital or elevated borrowing costs can adversely impact our operations and growth momentum. To mitigate this risk, we maintain a disciplined financial strategy focused on building adequate reserves through robust operating cash flows, thereby ensuring our readiness to capitalise on strategic land acquisition and development opportunities as they emerge. in challenging pricing environments.

Internal Control Systems

Our internal control systems are appropriately designed and scaled to match the nature, size, and complexity of our operations.

Emphasising continuous improvement, we have prioritised the enhancement of our IT infrastructure across both hardware and software domains. Supported by well-defined policies, robust standard operating procedures (SOPs), clearly articulated financial and operational delegations of authority, and a structured organisational framework, we ensure the seamless and efficient execution of our business operations.

Sustainability

As a responsible corporate entity, we have embedded sustainability at the heart of our business operations. Through a range of focused initiatives, we remain committed to fostering a safe, inclusive, and environmentally sustainable ecosystem for all stakeholders.

Cautionary Statement

This Management Discussion and Analysis contains forward-looking statements that reflect our current views on future events and financial performance. The actual results may differ materially from those anticipated in these forward-looking statements due to various factors.