Real Growth Corporation Ltd Management Discussions

The company was engaged in the development of commercial complexes since 2000. In 2007, the company diversified to another business segment i.e. “Trading Business”. The objective of the trading division was to increase the scope of the business used in construction and real estate industry. Towards business development, the company will strengthen / establish in ancillary business activities of Real Estate Industry.

1. ECONOMY OVERVIEW

1.1 Global Economy Overview

The global economy in 2025-2026 is stabilizing at a modest, sub-trend pace with GDP growth hovering between 2.5% and 3.1%, as steady disinflation and an artificial intelligence investment boom are heavily countered by escalating trade tariffs, severe geopolitical fragmentation, and mounting public debt burdens. While major central banks have shifted toward monetary easing to provide relief to global credit markets, structural headwinds continue to diverge performance regionally: the United States is experiencing a moderate, policy-driven slowdown, the Euro Area remains largely stagnant due to industrial and energy pressures, and Chinas growth is easing toward the mid-4% range amid real estate and export challenges. In contrast, India stands out as the fastest-growing major economy, powered by robust domestic infrastructure spending.

1.2 Indian Economy Overview

The Indian economy in 2025-26 stands out as a highly resilient global growth engine, with real GDP expanding by an impressive 7.4%. According to the Government of Indias Economic Survey 2025-26, the nation has secured its status as the worlds fastest-growing major economy for the fourth consecutive year, successfully navigating external vulnerabilities like trade fragmentation and the West Asia conflict. This momentum is primarily propelled by a "double engine" of robust domestic demand and aggressive infrastructure capital expenditure, with private consumption scaling to 61.5% of GDP?its highest share since 2012. Macroeconomic foundations have strengthened substantially, highlighted by a notable drop in consumer inflation, a multi-decade low gross non-performing asset (GNPA) ratio of 2.2% within the banking sector, and a narrowing fiscal deficit targeting 4.4% of GDP.

2. INDUSTRY REVIEW

2.1 Global Real Estate Industry

The global real estate industry is a major sector of the world economy that includes the development, buying, selling, leasing, and management of residential, commercial, industrial, and retail properties. It is influenced by factors such as economic growth, population growth, urbanization, interest rates, government policies, and changing consumer preferences. Rapid urbanization and increasing demand for housing and commercial spaces continue to create opportunities in emerging markets, while developed markets focus on sustainable development, smart buildings, and technology-driven property management. The industry is also being transformed by digital technologies such as artificial intelligence, virtual property tours, online property platforms, and data analytics. Despite challenges such as high interest rates, economic uncertainty, rising construction costs, and regulatory changes, real estate remains an important avenue for investment and wealth creation worldwide.

2.2 Indian Real Estate Industry

The Indian real estate industry is one of the major sectors of the Indian economy and plays an important role in employment generation, infrastructure development, and economic growth. It includes residential, commercial, retail, industrial, and infrastructure-related properties. Rapid urbanization, rising incomes, population growth, increasing demand for housing, and the expansion of businesses have contributed to the growth of the sector. Major cities such as Mumbai, Delhi-NCR, Bengaluru, Hyderabad, Chennai, and Pune are important real estate markets in India. The industry is also witnessing increased adoption of technology, sustainable construction, smart homes, and organized real estate practices. Government initiatives such as RERA, affordable housing schemes, and infrastructure development have further supported the sector. Although challenges such as high property prices, financing costs, regulatory issues, and construction delays remain, the Indian real estate industry continues to offer significant opportunities for investment and long-term growth.

3. SEGMENT WISE PERFORMANCE

3.1. Real Estate Segment

The major revenue during the year has been contributed by the Real Estate segment of the company primarily on account of sale of commercial inventory.

3.2 Trading Segment

During the financial year 2025-26, the Company did not generate any revenue from its trading segment. This was primarily due to unfavorable market conditions. Further, the results of the Companys operating segments have been disclosed in Note 31 of the Balance Sheet, in accordance with applicable financial reporting standards.

4. SWOT ANALYSIS

4.1 Growth Drivers

Measures like increased TDS thresholds for rental income and potential tax benefits for homebuyers are expected to boost market activity. Increased FDI in the real estate sector, particularly in townships and settlements development projects, is anticipated. Adoption of digital technologies in real estate, such as online platforms and virtual property viewings, will enhance customer experience and streamline transactions. Growing emphasis on Environmental, Social, and Governance (ESG) factors in project planning and execution is expected to drive sustainable development. Expansion into smaller cities with developing infrastructure and lower property costs is likely to gain traction.

4.2 Key Trends

Luxury housing and commercial spaces are expected to see increased demand from both domestic and foreign investors. While theres a push for affordable housing, factors like rising costs and affordability pressures may pose challenges in certain segments. The Real Estate Investment Trust (REIT) platform is expected to attract more global investors, contributing to the growth of the overall market. Fractional ownership of commercial real estate is gaining popularity, offering retail investors a way to participate in the market. Developers are adapting to changing buyer preferences, with a focus on modern amenities, sustainable construction, and smart home technologies.

4.3 Potential Challenges:

Rising property prices and high mortgage rates may impact affordability, particularly for first-time homebuyers.

External factors like global economic slowdown or geopolitical instability could impact investor confidence and market growth.

5. INTERNAL CONTROL SYSTEMS

RGCL has established a robust internal control system that protects all of its assets and assures operational excellence. The internal control system also assures regulatory compliance and precisely documents all information regarding the Company’s transactions. The internal control system is totally relevant to the business’s type, size, scope, and complexity of operations. The Company has effective internal financial control mechanisms in place to make sure that transactions are properly authorised, documented, and reported. Regular internal audits and checks make sure that operations are carried out successfully.

6. FINANCIAL PERFORMANCE

During the financial year under review, your Company achieved a total revenue of ?387.23 lakh, a significant decrease compared to ?860.86 lakh in the previous year. The Company also reported a profit of ?77.49 lakh, as compared to profit of ?727.64 lakh in the preceding year. Looking ahead, the Company remains committed to strengthening its operations and maintaining a consistent focus on enhancing profitability in the coming years.

7. HUMAN RESOURCES

RGCL considers its people to be the foundation of the Company’s success. The Company takes greatpride in recognizing the success of its human resource, which has always responded with unwavering dedication to accomplish business growth and market leadership. The executive leadership serves as the governing force in promoting a progressive workplace culture. The Company believes in reinforcing the core thrust areas, namely becoming the employer of choice, fostering an inclusive culture, developing a strong talent pipeline.

8. DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS ALONG WITH EXPLANATION

In compliance with the requirements of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the key financial ratios of the Company have been disclosed in Note 35 of the Balance Sheet. Further, explanations have also been provided for those ratios that have undergone a significant change of 25% or more as compared to the previous financial year.

9. STATEMENT

This Statement contains forward-looking statements about the business, financial performance, skills and of the Company. Statements about the plans, intentions, expectations, beliefs, estimates, predictions or similar expressions for future are forward-looking statements. Forward-looking statements should be viewed in the context of many risk issues and event that could cause actual performance to be different from that contemplated in the Directors’ Report and Management Discussions and Analysis Report, including but not limited to, the impact of changes in oil, steel prices worldwide, technological obsolescence and domestic economic and political conditions. Actual result

By Order of the Board
For Real Growth Corporation Limited
Sd/-	Sd/-
Rajesh Goyal	Himanshu Garg
Director	Director
DIN - 01339614	DIN: 08055616
Add:- First Floor, House No. 32, Road No. 43, West Punjabi Bagh Delhi	Flat No. 150 Tower-Magnolia, Gaur Saundaryam, Greater Noida West, Uttar Pradesh-201306
Date: 26.08.2026
Place: Greater Noida