Raja Bahadur International Ltd Management Discussions

i. Industry Review, Developments and Outlook

India sustained strong economic momentum during FY 2025-26, holding its position as the worlds fastest-growing major economy. Indias real estate sector, the second-largest employment generator after agriculture, is poised for remarkable growth. It stands at the cusp of a transformative era, driven by rapid urbanisation, digital reforms, and strong investor participation. With growing demand this sector is set to remain a key pillar of Indias economic expansion. As modern infrastructure, policy support, and sustainable development converge, Indias real estate market is well-positioned to emerge as a global powerhouse shaping vibrant cities and enabling inclusive growth in the decades ahead.

The Indian economy recorded a real GDP growth of 7.7% in FY 2025-26, compared to 7.1% in FY 2024-25, driven by strong consumption and increasing investments, reaffirming Indias position as one of the fastest-growing major economies globally.

As per market reports, Punes office real estate market witnessed robust growth during FY 202526, recording a historic net absorption of approximately 9.9 million square feet, reflecting sustained occupier demand and strong market fundamentals. Demand was primarily driven by Global Capability Centres (GCCs), Banking, Financial Services and Insurance (BFSI), IT/ITeS, Financial Services, and Life Sciences companies. In addition, the growing adoption of flexible and managed workspaces continued to contribute meaningfully to leasing activity.

The supply of Grade-A office space also remained healthy, with Pune making a significant contribution to new office completions across India. This trend underscores continued developer confidence in the citys long-term commercial real estate prospects, supported by a diversified occupier base and favourable business ecosystem.

The Company remains well positioned to benefit from the sustained demand in the commercial real estate sector and continues to focus on the development and management of high-quality commercial assets, with particular emphasis on the office and retail segments.

ii. Opportunities and Threats Opportunities:

Indias favourable economic outlook, increasing urbanisation, rising corporate investments, expansion of Global Capability Centres (GCCs), and continued infrastructure development are expected to support sustained demand for commercial real estate over the medium to long term. Further, anticipated policy initiatives, ease of doing business, and increasing institutional investments in the real estate sector are expected to provide additional impetus to the industrys long-term growth.

Threats:

The real estate sector continues to operate in a dynamic business environment and is exposed to various external and industry-specific risks including advent of AI. Delays in obtaining statutory approvals, changes in the regulatory framework, or prolonged approval timelines may impact project execution and overall business performance.

The industry is also highly dependent on the availability of skilled and semi-skilled labour. Any shortage of labour or disruption in the supply of an adequately trained workforce may adversely affect project timelines and execution.

Further, the Companys operations are exposed to market-related risks, including fluctuations in interest rates, inflationary pressures leading to higher construction and input costs, supply chain disruptions, and changes in overall economic conditions. The Company continues to monitor these risks closely and adopts appropriate mitigation measures, including prudent project planning, cost optimization initiatives, and robust risk management practices.

iii. Segment Wise Performance:

Your Company has only one segment i.e. Construction and Real Estate Development. Revenue and expenses have been identified on the basis of accounting standard as applicable and guidance note issued by Institute of Chartered Accountant of India for this sector.

iv. Key Financial Ratios Analysis

v. Risks and Concerns

The real estate industry is exposed to various operational, financial and regulatory risks that may affect project execution and business performance. Timely completion of projects depends on factors such as availability of labour, fluctuations in raw material prices, receipt of statutory approvals and regulatory clearances, access to essential utilities, favourable weather conditions, and the absence of legal or contractual disputes.

The Company seeks to mitigate these risks through prudent planning, effective project monitoring, and engagement of experienced contractors.

The industry also faces challenges arising from the prevailing interest rate environment and elevated construction input costs, which may impact project costs and margins. The Company continues to monitor these risks and adopts appropriate cost optimisation and risk management measures.

Further, evolving environmental regulations and climate-related considerations may increase development costs and impact project execution. The Company remains committed to integrating sustainable practices into its operations to enhance long-term resilience.

vi. Internal Control Systems and their Adequacy

The Company has an adequate internal control system commensurate with the nature, size and complexity of its business. It has a well-defined organisational structure, documented policies and procedures, and clearly defined authority levels to ensure the orderly and efficient conduct of its operations.

The internal audit function is carried out by an independent firm of Chartered Accountants, which reviews the adequacy and effectiveness of the internal control framework, compliance with applicable laws and regulations, and adherence to the Companys policies and procedures. The observations and recommendations of the internal auditors are reviewed by the Audit Committee.

vii. Financial Performance

During the year under review Companys operational income is Rs.2,865.13 lakhs (previous year 2,774.66 lakhs) and other income is Rs. 831.97 lakhs (previous year Rs. 281.71 lakhs). The Company has earned a profit of Rs. 134.00 lakhs during the year (previous year loss of Rs. 92.95 lakhs).

viii. Material development in Human Resources including number of people employed.

Your Company firmly believes that success of a company comes from good Human Resources. Employees are considered an important asset and key to its success. The employees relation continued to be satisfactory.

As of March 31, 2026, we had 45 permanent employees, as compared to 43 as on March 31, 2025.