Rodium Realty Ltd Management Discussions

I am pleased to present the Annual Report for FY 2024 25. I trust this message finds you and your families in the best of health and spirits.

Macroeconomic & Sector Outlook

Indias macroeconomic environment remained broadly supportive in FY 2024 25. Real GDP growth is estimated around 6.5 7.0% for the year, keeping India among the worlds fastest-growing major economies. Importantly, inflation moderated into the mid-single digits (CPI ~4.8% by March 2025), which helped preserve consumer purchasing power and set the stage for potential policy rate cuts. This stable growth-and-inflation mix bolstered overall business confidence and was conducive to housing demand. Against this backdrop, the Indian real estate sector saw robust momentum. Housing sales across the top 8 cities hit a 12-year high in 2024, rising ~7% year-on-year. Strong economic growth and stable mortgage rates fueled better demand, especially for premium homes. Mumbai led in volumes recording about 96,500 residential units sold (up ~4% YoY) the highest among all metros. This broad-based recovery in residential real estate, coupled with favorable demographics and urbanization trends, underpins a positive sector outlook. Developers are increasingly optimistic, focusing on timely project execution and innovation in product offerings to cater to evolving consumer preferences (e.g. larger homes, integrated townships). Overall, the sector enters FY 2025 26 on a solid footing, with healthy end-user demand and improving investor sentiment.

Mumbai Residential Market Performance (FY 2024 25)

Mumbais housing market continued its growth trajectory through FY 2024 25, building on the previous years record activity. Annual residential transactions in the city reached multi-year highs nearly 96,470 units sold in 2024 reflecting sustained buyer interest across segments. Demand was buoyed by a mix of affordable and mid-income buyers as well as an uptick in luxury purchases, in line with the nationwide "premiumisation". Stable home loan rates (following earlier RBI hikes) and new project launches in key suburbs kept the momentum strong. Notably, Mumbais Western and Central suburbs saw the bulk of new supply and sales, as homebuyers showed preference for peripheral locations offering modern amenities and relatively better affordability than the city core. The Jogeshwari-Borivali belt led the surge, accounting for a significant share of sales. With average prices rising around 6% to 27,500 per sq ft, inventory overhang has reduced, signalling a healthy, balanced market. Kandivali Micro-Market: In particular, the Kandivali belt (part of the western suburbs) emerged as a vibrant micro-market during FY 2024 25. Kandivali caters to a broad spectrum from budget-conscious buyers to premium segment customers and this diversity was reflected in local market performance. Residential property prices in Kandivali appreciated healthily over the year, supported by new infrastructure and redevelopment projects. Kandivali East, for instance, saw an average price surge of ~26% YoY (to around 22,600 per sq.ft.), while Kandivali West registered a 6% YoY rise with average rates near 20,760 per sq.ft.. New premium developments in the area now command prices upwards of 30,000 per sq.ft. with some under-construction projects in Mahavir Nagar quoting 32,000 38,000 per sq.ft. underscoring the willingness of buyers to invest for quality and location. At the same time, the micro-market continues to offer affordable options (smaller units or older buildings) that attract first-time homebuyers, ensuring sustained transaction volumes. Improved connectivity (e.g. the Mumbai

Redevelopment in MMR: A Key Growth Strategy

Redevelopment is increasingly at the forefront of Mumbai Metropolitan Region (MMR)s growth strategy, especially in land-constrained residential pockets. Mumbais housing stock is ageing over 50% of buildings are 30+ years old, many with structural dilapidation and outdated layouts. Redevelopment offers a win-win solution by replacing these old structures with modern, taller buildings, thereby increasing housing supply and upgrading living standards without expanding the citys footprint. It enables existing residents to obtain safer, amenity-rich homes (often in the same neighborhood), while developers get access to prime urban land for new projects. In FY 2024 25, redevelopment continued to gather pace across the city, supported by proactive regulatory changes. The government has provided regulatory impetus including smoother approvals and more favorable FSI norms under the Development Control Regulations 2034 which has made redevelopment projects more financially viable for builders. Incentives like relaxed parking requirements and fast-track clearances for cluster redevelopments have further eased execution. Looking ahead, Indias real estate sector is projected to expand its output to USD 1.3 trillion by 2034, up from the current USD 650 billion. This growth is primarily driven by increased residential demand, alongside developments in commercial, retail, hospitality, and warehousing sectors, which are all responding to the needs of the growing population. Keeping in mind the factors of redevelopment, Your Company has successfully launched the following redevelopment projects.

Xheights World of Delight, Rodium will launch Xheights, an iconic 42-storey skyscraper that will encapsulate the epitome of modern living. Xheights will feature a blend of exquisite design and premium finishes, establishing itself as a true symbol of opulence. Every corner will reflect meticulous attention to detail and an unwavering commitment to quality, promising a lifestyle that will be as luxurious as it is comfortable. For those who will seek a harmonious blend of luxury, comfort, and modernity, Xheights will be the ultimate destination

"Xone Luxury Like None" in Kandivali. It has continued to strive to create comfortable yet affordable spaces for the families of the city. This project is nestled in the prime location of Kandivali (West), standing as a masterpiece of architectural ingenuity, a blend of luxury and practicality, where every detail has been meticulously crafted to exceed customers expectations. It is set against the backdrop of the serene Shankar Mandir and Jain Derashar. This project enjoys a unique blend of spiritual tranquillity and urban convenience. This is not just home; its a statement of your refined taste and aspirations.

"Xline and Xenus projects have been successfully completed by the Company in the current year.

We believe new and existing projects results into strong balance sheets and the projects are poised to grow faster, given the limited period of opportunity to contract projects at low costs and their pace of growth depends on the success of the existing projects (cash flows), ability to grow (balance sheets), intent (growth track records), execution skills and pricing flexibilities.

Key Opportunities

Urbanization & Housing Demand:

Indias rapid urbanization trends ensure long-term opportunity for residential real estate. The countrys urban population continues to swell (projected to exceed 40% of total population by 2030), adding millions of new city dwellers each year. This megatrend is especially relevant in Mumbai as more people migrate or form new households in the metro area, the demand for housing (across affordable and premium segments) remains structurally robust. Our company is well-positioned to tap into this growing urban housing requirement through strategic redevelopment projects in the city.

Evolving Work & Lifestyle Trends:

The post-pandemic shift toward hybrid work models has subtly reshaped housing preferences, which presents an opportunity. With an estimated 58% of Indian employees now preferring a mix of remote and office work, many homebuyers are seeking larger, flexible homes to accommodate home-office setups. This trend has bolstered demand for well-designed residential spaces in suburban markets like Kandivali, where buyers can get bigger apartments (with amenities like dedicated work nooks or study rooms) at relatively reasonable prices. Our focus on redevelopment (often yielding larger apartment sizes and modern layouts) aligns well with these evolving consumer needs, potentially driving higher absorption for our projects. Additionally, increased time spent at home has heightened the value placed on amenities and community infrastructure, which we integrate into our premium redevelopment offerings to attract discerning buyers.

Policy Support & Self-Redevelopment Initiatives

The regulatory climate is turning increasingly supportive of redevelopment activities. The Maharashtra governments new Housing Policy 2025 explicitly emphasizes redevelopment of old buildings and slums, and notably pushes for self-redevelopment of cooperative housing societies. A dedicated funding allocation of 2,000 crore and the creation of a single-window facilitation cell for society-led projects are expected to accelerate redevelopment approvals and execution. Moreover, authorities plan to streamline approvals via single-window clearance and even offer subsidized loans (around 4% interest) for societies opting to rebuild on their own. All these measures will expand the pipeline of viable redevelopment projects in MMR. As a specialist in society redevelopment, the company can leverage these policies partnering with housing societies or advising on self-redevelopment thereby tapping a large latent market. According to industry estimates, over 25,000 buildings in MMR are eligible for redevelopment (worth ~ 30,000 crore in project value). This represents a vast opportunity in the coming years, supported by government incentives and rising homeowner awareness.

Key Risks & Challenges

Regulatory Approvals & Delays

While policy support has improved, obtaining the myriad approvals for redevelopment projects in MMR can still be a protracted process. Projects often require clearances from multiple agencies (municipal corporations, environmental authorities, etc.), and any procedural inefficiency can delay project timelines. In older housing societies, securing requisite consent from cooperative members is another hurdle disagreements over terms or developer selection can stall redevelopment starts. Despite a push for single-window systems, the clearance process remains complex; in fact, many societies have been hesitant to undertake redevelopment precisely due to the lengthy approval bureaucracy involved. For our company, such regulatory delays could impact project schedules and carrying costs. We mitigate this by diligent project planning, compliance, and stakeholder management, but this risk remains a factor that could affect revenue recognition and investor returns if not carefully managed.

Funding & Liquidity Constraints

Real estate development is capital-intensive, and redevelopment projects in particular entail upfront costs (for land/society premiums, temporary tenant accommodations, construction) with cash inflows only coming after new sales. Financing challenges can thus pose a risk. Higher interest rate environments or tight credit availability can strain developers balance sheets. Notably, the cost of funding rose over the past year, increasing the financial burden on developers financing costs have been up, heightening risk for projects that generate no revenue until completion. Smaller developers in Mumbai have at times struggled with this, leading to stalled projects. While our company maintains prudent leverage and has access to diverse funding sources, an industry-wide liquidity crunch or sustained high borrowing costs could slow down project execution and growth plans. We continue to monitor macroeconomic factors (interest rate trends, lender sentiment) and maintain adequate capital buffers to navigate this risk.

Construction Cost Pressures

The past year saw elevated construction costs, which can compress profit margins if not managed. In 2024, average construction expenses for residential projects rose roughly 10 11%, driven by a steep jump in labor wages (labor costs up ~25%) and enhanced specifications (as developers pivot to higher quality, amenity-rich projects). Although core material prices (cement, steel) were relatively stable or even slightly down, the surge in overall input costs has made project budgeting more challenging. For redevelopment, where sale prices are often capped by local market dynamics, rising costs can erode viability. Additionally, volatility in commodity prices or supply chain disruptions could further inflate costs. The company mitigates this risk through value engineering, bulk procurement arrangements, and contingency provisions in project budgets. Nonetheless, sustained construction inflation remains a risk factor that we closely watch, as it could necessitate pricing adjustments or impact housing affordability in the price-sensitive segments we serve.

Outlook

Despite these challenges, the company remains confident in its strategic direction. We believe our focus on residential redevelopment in Mumbais key micro-markets backed by strong market fundamentals and prudent risk management will continue to deliver sustainable growth. The management is committed to navigating the above risks while capitalizing on emerging opportunities, thereby creating long-term value for our stakeholders in FY 2025 26 and beyond.

COMPLETED PROJECTS

"Xcube"

Integrating Eminence and Efficiency

CRISIL 5-Star Rated Commercial Development located in Andheri (West), Xcube offers exotic spaces catering to the needs of restaurants, showrooms, office exhibition areas & customizing to the needs of MNCs, Corporate houses, Professionals & Exhibitors. An advance and unmarked rendition. The structure has been made environmentally sensitive by emphasizing on the conservation of natural resources. Xcube successfully makes a bold visual statement

"Xtrium"

A Symphony of Elegance and Class

CRISIL 5-Star Rated Commercial Development located on the commercial artery. With a passion for achieving supremacy, Xtrium promises ergonomically designed spaces with word-class infrastructure to house Commercial offices, Banquet halls and Residential hotels. Every floor at these eco-techno environs is meticulously planned making them not just commercial spaces but refreshing surrounds. Now featuring additional floors, Xtrium offers enhanced convenience and capacity, catering to the growing demands of dynamic businesses and events, while maintaining its core essence of elegance and efficiency.

"Xczar"

Residences that will make you proud

Structurally grandiose and majestic, Xczar will undoubtedly be the envy of the quaint neighbourhood of J.V.P.D. A residential space which will be a symbol of magnificence at its best Serving you with the most stupendous and dazzling of services and offerings that you would only have dreamt of. Setting high standards of living, enjoying life to the peak and lavish living at its best, are some of the things that Xczar stands for.

"Xpoint"

Reside Relax Rejuvenate

In the perspective of creating & designing spaces, for every owner to love, to be proud of and be happy to live in. With such expectations we create, one after another, exclusive and unique living spaces here by introducing X-POINT. The Project is a mix of retail spaces and residences that comes along with a rare vision to transcend the expectations of occupant. Arriving at the site one is first greeted with a truly elegant double height lobby forming a welcoming gesture, this is a place to come home to.

"Xenus"

Where Life Resides

Xenus by Rodium is not just an ordinary block on block building. It is a beautiful space that is designed keeping your needs and goals in mind Xenus personifies the best experience of affluent lifestyle replete with unparalleled conveniences. With all the luxuries and amenities of 5 stars to the basic housing needs, weve prepared a breath taking space that you will be proud to call your home.

"Xline"

Redefining Kandivalis Skyline

After the success of Rodium Xpoint, we are have completed another iconic landmark to redefine the skyline of Kandivali. Located in the bustling suburbs of Kandivali West, Rodium Xline offers you a lifestyle most people can only dream of. We are creating a project that has thoughtfully designed homes and delightful amenities. At Rodium Xline, we intend to deliver another successful project and develop another iconic landmark in Kandivali.

ONGOING PROJECTS

"Xone"

Luxury Like None

The Rodium Xone Project, nestled in the prime local of Kandivali West, stands as a masterpiece of architectural ingenuity, a blend of luxury and practicality, where every detail has been meticulously crafted to exceed your expectations. Set against the backdrop of the serene Shankar Mandir and Jain Derasar, the project enjoys a unique blend of spiritual tranquillity and urban convenience. This is not just a home; its a statement of your refined taste and aspirations.

UPCOMING PROJECTS

"Xheights" World of Delight

Rodium presents Building Xheights, an iconic 42-storey skyscraper that encapsulates the epitome of modern living. Xheights is a blend of exquisite design and premium finishes, making it a true symbol of opulence. The attention to detail and commitment to quality are evident in every corner, promising a lifestyle that is as luxurious as it is comfortable. For those seeking a harmonious blend of luxury, comfort, and modernity, Xheights is the ultimate destination.

Xmeadows"

Smart Homes For Smart Living

Your Company is seeking the opportunities in MMR Region, the largest market for sales of residential units in the country. Xmeadows is designed with a master plan incorporating an interesting interplay of open and semi-open spaces that weave in the elements of nature. From commanding 14 storey towers, infinite panaromic vistas & airy homes to all modern & recreational ammenties we welcome you to sense the serenity, connect with nature and experience the tranquility.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:

Rodium Realty Limited has a well-established internal control system to manage business operations, financial reporting and other compliance needs. The business performance vis-a-vis plan is monitored periodically, and regular internal audits are performed to ensure sustenance of the internal control systems. The Company has a robust and well embedded Internal Control systems in place, adequate for the size of the Company and the nature of its business. The Primary function of our internal control systems is to ensure efficiency in business operations, safeguarding of Companys assets, adherence to policies and procedures, protecting and detecting errors and frauds, compliance with applicable laws and ensuring the reliability of financial statements and reporting. This provided assurances to the Audit Committee regarding the adequacy and efficacy of internal controls, advises management on the changing risks that matter and is aligned with the business objectives. Progress to plan and key findings are reviewed by the Audit Committee each quarter. Further, the Audit Committee also monitors the status of management actions following the internal audit reviews.

RISKS AND CONCERN:

Statutory Approvals:

The real estate sector in India is heavily regulated by the central, state and local governments. Real estate developers are required to comply with a number of laws and regulations, including policies and procedures established and implemented by local authorities in relation to land acquisition, transfer of property, registration and use of land. These laws often vary from state to state. Several of your Companys projects are in preliminary stages of planning and any delay in obtaining approvals could warrant revised scheduling of project timelines.

Industry Cyclicality

The real estate market is inherently a cyclical market and is affected by macroeconomic conditions, changes in applicable governmental schemes, changes in supply and demand for projects, availability of consumer financing and illiquidity. However, any future significant downturn in the industry and the overall investment climate may adversely impact business.

Climate Change-

The sector is already experiencing shifts due to climate change, the intensity of which is expected to increase over the coming years. The challenges or risks can be broadly classified into two categories, physical and transitional. The former is on account of acute and chronic physical effects of climate change such as damage to infrastructure at construction sites or building projects, damages to logistics routes, reduced efficiency of workforce due to heatwaves, etc.

Several management and leadership team members including Board of Directors periodically review the risk management policies and systems to incorporate any changes in the risk profile due to changes in the external environment and strategic priorities. The Board of Directors and the Audit Committee of the Manager is assisted by internal audit team in monitoring the risk profile and effectiveness of mitigation plans to manage the identified business risks. The major risks identified by the businesses and functions are systematically addressed through mitigating actions on a continuing basis.

DISCUSSION ON FINANCIAL PERFORMANCE:

The financial overview comprises of revenue primarily from sale of completed property and proportionate revenue of property under development.

Standalone Financial Results of Rodium Realty Limited

Particulars	FY 2024-2025	FY 2023-2024
INCOME AND GAINS
Revenue from operations	1,003.71	1,981.10
Other Income	322.64	401.85
Total Income	1,326.35	2,382.95
Cost of Construction & Development	286.61	795.35
Cost of Finished Units	0.00	160.00
Changes in inventories of Finished Goods, Stock -in-	(143.35)	906.01
trade and Work -in- progress
Employee Benefit Expenses	36.54	36.12
Finance Costs	281.31	216.91
Depreciation and Amortisation expense	8.08	10.07
Other Expenses	548.53	219.19
Total Expense	1,017.72	2,343.65
Profit/ (Loss) Before Tax	308.63	39.30
-Deferred Tax	31.24	(34.71)
-Earlier year adjustments	(0.65)	54.72
Total Tax Expense	30.59	20.01
Profit/ (Loss) For the Year	278.04	19.29
Items that will not be reclassified to profit and loss -Remeasurement of defined benefit plans	0.12	5.70
-Income tax relating to items that will not be reclassified to Profit or Loss	(0.03)	(1.43)
Total Other Comprehensive Income for the year, Net of Tax	0.09	4.27
Total Other Comprehensive Income/ (Loss) for the year	278.13	23.56

These Separate financial statements (also known as Standalone Financial Statements) have been prepared in accordance with IND AS as prescribed under Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and subsequent amendments thereto.

Consolidated Financial Results of Rodium Realty Limited

Particulars	FY 2024-2025	FY 2023-2024
INCOME AND GAINS
Revenue from operations	6,155.54	4,755.04
Other Income	109.21	137.73
Total Income	6,264.75	4,892.77
EXPENSE AND LOSSES
Cost of Construction & Development	4,666.86	4,100.73
Cost of Finished Units	0.00	160.00
Changes in inventories of Finished Goods, Stock -in-
trade and Work -in- progress	(51.05)	(248.63)
Employee Benefit Expenses	126.38	46.00
Finance Costs	291.67	216.91
Depreciation and Amortisation expense	42.26	10.30
Other Expenses	596.58	259.53
Total Expense	5,672.70	4,544.84
Profit/ (Loss) Before Tax	592.05	347.93
TAX EXPENSE
-Current Tax	346.00	178.98
-Deferred Tax	(137.95)	(34.60)
-Earlier year adjustments	39.93	71.41
Total Tax Expense	247.98	215.79
Profit/ (Loss) For the Year	344.07	132.14
OTHER COMPREHENSIVE INCOME
Items that will not be reclassified to profit and loss
-Remeasurement of defined benefit plans	0.12	5.70
-Income tax relating to items that will not be reclassified to Profit or Loss	(0.03)	(1.43)
Total Other Comprehensive Income for the year, Net of Tax	0.09	4.27
Total Other Comprehensive Income/ (Loss) for the year	344.16	136.41

returns through its power over the investee. Specifically, the Group controls an investee if and only if the Group has:

Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee) Exposure, or rights, to variable returns from its involvement with the investee, and The ability to use its power over the investee to affect its returns

Generally, there is a presumption that a majority of voting rights result in control. To support this presumption and when the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including: The contractual arrangement with the other vote holders of the investee Rights arising from other contractual arrangements The Groups voting rights and potential voting rights

The size of the groups holding of voting rights relative to the size and dispersion of the holdings of the other voting rights holders

The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date the Group gains control until the date the Group ceases to control the subsidiary.

Consolidated financial statements are prepared using uniform accounting policies for like transactions and other events in similar circumstances. If a member of the group uses accounting policies other than those adopted in the consolidated financial statements for like transactions and events in similar circumstances, appropriate adjustments, if material, are made to that group members financial statements in preparing the consolidated financial statements to ensure conformity with the groups accounting policies.

The financial statements of all entities used for the purpose of consolidation are drawn up to same reporting date as that of the Holding Company, i.e., year ended on 31 March.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS & RETURN ON NET WORTH:

Particulars	FY 2024-2025	FY 2023-2024	% Change	Remarks for variance more than 25%
Debtors Turnover	1.61	1.83	(12.01%)	Not Applicable
Inventory Turnover	0.48	0.44	8.85%	Not Applicable
Debt Service Coverage Ratio	0.09	0.23	(60.86%)	Increase in Earning for Debt Service
Current Ratio	1.13	1.14	(1.08%)	Not applicable
Debt Equity Ratio	3.99	5.81	(31.42%)	Decrease in Debt
Net capital turnover Ratio	1.06	1.68	(37.00%)	Reduction in Working Capital
Net Profit Ratio	0.28	0.01	2745.33%	Increase in Profit
Return on Capital employed	0.35	0.18	91.82%	Increase in Profit
Return on Investment.	0.39	0.81	(51.79%)	Decrease in Investment Income

DISCLOSURE OF ACCOUNTING TREATMENT:

Your Company has followed all the relevant Accounting Standards while preparing the financial statements. The Financial Statements have been prepared on historical cost basis considering the applicable provisions of Companies Act 2013 except the following material items that have been measured at fair value as required by relevant Ind AS. Nevertheless, historical cost is generally based at the fair value of the consideration given in exchange for goods and services.

DISCLAIMER:

The Company shall be registering its forthcoming projects at an appropriate time in the applicable jurisdictions I States under the Real Estate (Regulation and Development) Act, 2016 (RERA} and Rules thereunder. Till such time, the forthcoming projects, none of the images, material, projections, details, descriptions and other information that are mentioned in the Annual Report for the FY 2024 2025, 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.

The Company uses carpet areas as per RERA in its customer communication. However, the data in saleable area terms has been presented in the Annual Report for the FY 2024-2025 to enable continuity of information to investors and shall not be construed to be of any relevance to home buyers /customers.