S V Global Mill Ltd Management Discussions

Reserve Bank of India in its various reports indicated that, the Indian economy, with a sustained momentum is expected to achieve a GDP growth of 7.6% for the FY 2025-26, driven by domestic consumption, investment and structural reforms. The GDP growth for FY 2026-27 is projected at 6.9%. The reason for the decline in the estimate for 2026-27 is on account of geo political tensions and the corresponding fluctuation in oil prices.

The RBI has slightly revised its quarterly projections for FY 2026-27. Growth for the first quarter has been lowered to 6.8% from 6.9%, while the second quarter estimate has been reduced to 6.7% from 7%, reflecting global headwinds and rising energy prices.

The latest update from the Ministry of Statistics and programme implementation is that the GDP for 2025-2026 is estimated at 7.7% as Compared to 7.1% in the previous Financial year 2024-2025. GDP growth in the fourth quarter of 2025-2026 stood at 7.8%

The Honble Prime Minister commented that the GDP growth rate of 7.7% in 2025-2026 reflected the inherent strength of our economy, the success of reforms and the hard work of 140 Crore Indians.

The Policy reforms contemplated by the Union Government in respect of Direct tax exemption for the middle income group lifted the disposable income and rational of GST contributed to the boost to domestic demand. Public Investment and fiscal discipline and diversification of export markets on account of steep hike in US tariff are some of the policy measures which enabled the economy to face the pressures and improve the demand.

The central bank sees a strong economy in the back of solid investment demand, which is supported by healthy balance sheets of banks and corporates, the governments focus on capital expenditure and prudent monetary, regulatory and fiscal policies.

India continues to demonstrate resilience as one of the fast growing large economies supported by strong domestic demand, sustained public capital expenditure and policy continuity.

The Indian economy is navigating the drag from an adverse global macroeconomic and financial environment and is well-placed to step up growth trajectory over the next decade in an environment of macroeconomic and financial stability.

India recorded the lowest inflation rate with Apr to Dec 2025 average headline inflation coming in at 1.7% attributing to general disinflationary trends in food and fuel prices.

Head line inflation plummeted to an average of ~2.1% for FY 2025-26 as against 4.6% in the previous year FY2024-25 driven by a prolong decline in Food prices and favourable monsoon.

The RBI revised its inflation forecast for the year 2026 from 2.6% to 2% supported by good Kharif harvest and healthy Rabi sowing.

The macro economic trends in FY 2025-26 points to an economy characterised by stability alongside momentum. Growth remains broad based against agriculture, Industry and Services while inflation has moderated and labour market indicators have strengthened.

However, the recent trends in Global scenario is not encouraging on account of the ongoing war between Iran and US and other Gulf countries. This has resulted in the shortages of Petrol and Gases

from the Gulf countries as Iran has closed the strait of Hormuz. However, the Government is taking all steps to limit the impact to the minimum through diplomatic outreach.

As headline inflation eases towards the target, it will spur consumption demand especially in rural areas. It is also emphasised that the Indian economy would have to navigate challenges posed by rapid adoption of AI/ML (artificial intelligence/machine learning) technologies as well as recurrent climate shocks.

However, the risks to food inflation remains vulnerable to supply-side shocks. The prolonged wars in Asia and Middle east and the conflict between Iran and US and other gulf countries on the one side have affected the oil prices and the availability of Gas and oil which has resulted in spiralling of prices in the food and other groceries and affected the middle and lower segments of the population in India. All major countries including the United Nations Organisations (UNO) are working for an amicable solution to resolve the conflict at the earliest.

INDUSTRY STRUCTURE AND DEVELOPMENTS:

REAL ESTATE SECTOR:

As one of the largest contributors to Indias economy accounting for 7.3% of GDP and generating significant employment across construction and allied sectors, real estate remains central to the growth trajectory. Yet growing project scale, persistent cost pressures and tighter regulatory oversight are exposing the limitations of fragmented manual operating models. In response developers and investors are turning to digital and data driven tools to improve execution, certainty, transparency and capital efficiency

The Indian Real Estate sector is experiencing a phase of stabilisation and moderation for the financial year 2025-2026 following robust growth in the past decade both in Commercial and Residential Sectors. There has been a significant decrease in new project launches by 17 to 18% indicating a cautious approach to prevent over supply. The real estate prices are expected to increase by 5 to 7% annually

The Real Estate growth in 2025-2026 saw a controlled cool down in volume with sales in eight major cities showing a downward trend, Yet total market value increased highlighting a rise in per square foot up to 8%

Luxury and premium segment (ie more than Rs 1 crore) continue to drive demand while affordable housing faces pressure. However, the affordable housing has received a significant boost from Government. PMAY-Urban & PMAY-Urban 2.0 have been scaled up with a substantial outlay of Rs. 21,625 crores, a nearly threefold increase compared to the previous Rs. 7,500 crores. This expansion supports the goal of sanctioning 1 crore additional houses under PMAY-Urban 2.0 (between 2024-2029) to address the housing needs of the urban poor and middle class. For rural development the SWAMIH (Special window for Affordable and Mid Income housing) initiative is effectively transitioning to its next phase SWAMIH 2.0 backed by a planned corpus of Rs 15000 Crores. This phase builds on the successful milestone of delivering over 58000 housing units as of December 2025 providing much needed relief to home buyers in the stalled projects and further strengthening the real estate ecosystem.

Strong urbanisation and Infrastructure development are sustaining demand. Urban infrastructure development remains a central pillar for Indias growth strategy. The investment is being channelled through key programmes such as Bharatmala pariyojana, Sangamala, Smart cities mission and UDAN which are enhancing connectivity, improving logistics efficiency and reducing transport cost.

Infrastructure development in Tier 2 and Tier 3 Cities particularly those with population of more than 5 Lakhs is being prioritised to support more balanced and decentralised urbanisation.

Institutional investors and domestic investors created a balanced land scape in 2025.

The outlook for 2026-2027 is towards sustainable growth rather than runaway boom.

Office demand is set to stabilise at 70-75 Million Sq.feet with Global capacity centres driving grown Continued moderate growth in residential pricing is anticipated due to persistent demand.

OPPORTUNITIES AND CHALLENGES:

OPPORTUNITIES:

As explained earlier, the demand for Commercial and Residential spaces are increasing and your Company diligently safeguarded the inventories in the form of lands in both Bengaluru and Chennai waiting for the rightful opportunity to invest, construct commercial properties, expand and optimise the returns to the stake holders. Our Company has a Zero Debt policy and would like to expand on the internal accruals and revenue.

The Company is constantly evaluating to develop Joint venture development to develop Housing or commercial buildings in the real estate sector. There are some parcels of land which are not ideal to JV development and hence is weighing options to lease the land for exhibitions and car parking and also seeking suitable buyers to dispose of some of the parcels not ideal for JV development.

CHALLENGES:

As in every Industry, your Company also faces both Macro and Micro challenges;

• Global economic volatility and elevated domestic interest rates impacted homebuyer affordability and increased the cost of capital for the developers. The rise of housing prices is faster than incomes and hence affordability constraints are visible in mid income and affordable segments.

• Supply chain disruptions, rising material cost and margin pressure strained project visibility

• Land acquisition complexities, delayed environmental clearances and slower municipal approval processes continued to cause project delays and added execution risks

• Evolving consumer preferences necessitating Developers to adapt project designs and marketing strategies

• External macro factors such as geopolitical tensions, commodity price fluctuations and global capital flow uncertainties hinder investor sentiment in cross border investments

SEGMENT - WISE PERFORMANCE:

At present, the Company is engaged only in the business of real estate activities and there is no other separate reportable segment.

BUSINESS OUTLOOK:

As mentioned earlier and as per RBI, India is the only large Economy in the World to have continuous GDP growth of above 6.5% in the previous 3 financial Years and FY 2025-26 India real GDP growth is projected at 7.6% for FY 2026-27, the central bank has estimated growth at 6.9%, indicating a likely moderation amid rising global uncertainties and cost pressures. The RBI has slightly revised its quarterly projections for FY 2026-27. Growth for the first quarter has been lowered to 6.8% from 6.9%, while the second quarter estimate has been reduced to 6.7% from 7%, reflecting global headwinds and rising energy prices. Indias GDP growth stood at 7.8% in the December quarter of FY 2025-26, compared to 8.4% in the preceding quarter.

In the Real Estate Sector after record performance in 2025 there has been a controlled cool down in volume with sales in major cities dipping though market value has increased highlighting a rise in per square foot up to 8% at the national level. Luxury and premium housing continue to drive demand while affordable housing faces pressure.

Luxury and premium housing continue to drive demand while affordable housing faces pressure. The Key drivers for sustaining demand are urbanisation and infrastructure demand. Institutional investors and domestic investor created a balanced land scape in 2025.

For the year 2026-2027 the real estate sector is aiming at sustainable growth rather than a runway boom. Office demand is said to stabilise at 70-75 Million square feet with Global capability centres driving growth. Data centres are expected to grow rapidly by 2027.

To achieve the targeted GDP growth, the need of the hour is investments in the Commercial Space, Logistics & Warehousing which is gaining significant importance. We can see spurt of rentals of Commercial spaces in Metros by Worlds top 10 Companies like Meta, Apple, Amazon and various start- ups and Unicorn Companies. Your Company is constantly looking for suitable avenues to identify and venture in to new projects and business opportunities.

RISKS AND CONCERNS:

The Company is exposed to a number of risks such as economic, regulatory, taxation and environmental risks as well as sectoral investment outlook. Some risks that may arise in the normal course of business and could impact their ability to address future developments, comprise credit risk, liquidity risk, counterparty risk, regulatory risk, commodity inflation risk and market risk. The Companys strategy on focusing real estate activity for various geographical segments is exposed to economic and fluctuating market conditions. The Company continues to implement robust risk management policies that set-out the tolerance for risk management and the requisite mitigation plans.

Cautionary Statement: The above Management Discussion and Analysis contains certain forward-looking statements within the meaning of applicable security laws and regulations. These pertain to the Companys future business prospects and business profitability, which are subject to several risks and uncertainties and the actual results could materially differ from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, fluctuations in earnings, ability to manage growth, competition, economic growth in India, ability to attract and retain highly skilled professionals, time and cost over-runs on contracts, Government policies and actions with respect to investments, fiscal deficits, regulations etc. In accordance with the Regulations on Corporate Governance as approved by the Securities and Exchange Board of India, shareholders and readers are cautioned that in the case of data and information external to the Company, no representation is made on its accuracy or comprehensiveness, though the same are based on sources thought to be reliable. The Company does not undertake to make any announcement, in case any of these forward-looking statements become materially incorrect in future or update on any forward-looking statements made from time to time on behalf of the Company

ECONOMIC RISKS:

An economic slowdown and uncertainty in the economic system like the natural risks associated with the construction sector are beyond the control of a company so also the risks that have to do with the economy. A sluggish economy or even recession in a specific industry such as IT/ITES can lead to a decrease in sales or market rates for residential projects. In extreme cases of an economic downturn, a company may also run the risk of customer insolvency though the registration of property happens only on the receipt of all the dues from a customer. These factors could decrease the revenue generation

from some or all companys businesses, adversely effecting its business and future growth. Further, uncertainties in the national or global economic scenario, a changing demographic profile of the country and inflation also have a bearing on the functioning of a company operating in the real estate sector. In India, a real estate companys business is dependent on the easy availability of finance. An economic slowdown can result in fund shortages as lenders may want to act safe.

POLITICAL RISKS:

Changes in government policy, social and civil unrest, and political developments in or effecting India could affect the Companys business interests. Specific laws and policies effecting real estate, foreign investments and other matters effecting investments in the companys securities could also change.

LIQUIDITY RISKS &CREDIT RISKS:

LIQUIDITY RISKS: The real estate industry has its own challenges and dynamics. The time required to liquidate a real estate property can vary depending on the size, volume, demand, quality and location of the project.

CREDIT RISKS: In most of the cases properties are on a joint venture/sale basis. Credit risks arise when its JV partners or the buyers do not discharge their obligations and, in such circumstances, it may be required to make additional investments in a joint venture or become liable for the other partys obligations

POLICY AND REGULATORY RISKS:

REGULATORY RISKS: Local, state, and central regulatory bodies control the real estate sector through laws and regulations governing the acquisition, construction and development of land including zoning, permitted land use, fire safety standards, height of buildings and access to water and other utilities. Our business is subject to all these laws and regulations. Any delay in obtaining an approval under these laws and regulations will expose the business to higher risks.

LEGAL RISKS: In some legal proceedings relating to the land, in relation to taxation matters, any adverse decision may have a significant effect on the companys business, prospects, and financials.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has a comprehensive Internal Financial Control System commensurate with the size, scale and complexity of its operations. Your Company lays greater importance on internal control systems across the organization. The Company has adequate system of internal control which helps the management to review the effectiveness of financial and operating control as well as to ensure that all the assets are safeguarded and more productive. The system encompasses the major processes to ensure reliability of financial reporting, compliance with policies, procedures, laws, and regulations, safeguarding of assets and economical and efficient use of resources. We have a qualified and independent Audit Committee from the Board and quarterly meetings are attended by the Internal Auditors & Statutory Auditors. The Audit Committee reviews the adequacy and efficiency of internal controls and recommends any improvements or corrections. These internal controls ensure efficiency in operations, compliance with the policies of the Company.

DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT:

Employees are at the heart of your Company and a major resource for the future. Its their inexorable commitment that helps your Company to create spaces that enhance quality of life. Keeping the spirits

high at workplace needs a sound mental and physical fitness and deep-rooted culture which promotes work life balance.

Your Companys focus is to continue building organizational capability and capacity, leverage and nurture key talent, encourage meritocracy and enhance people utilization aligned with the business strategy. As on March 31, 2026 your Company had 15 employees.

DETAILS OF KEY FINANCIAL RATIONS:

Particulars	FY 2025-26	FY 2024-25	% of Variance
a) Current Ratio	26.15	92.04	65.89
b) Debt - Equity Ratio	0.04	0.11	0.06
c) Debt Services Coverage Ratio	NA	NA	NA
d) Return on equity Ratio	4.20	(0.18)	(4.38)
e) Inventory Turnover Ratio	0	-	NA
f) Trade Receivables Turnover Ratio	NA	NA	NA
g) Trade Payables Turnover Ratio	NA	NA	NA
h) Net Capital Turnover Ratio	0.04	0.04	0.00
i) Net Profit Ratio	4.5	(0.21)	4.29
j) Return on Capital Employed	1.19	(0.004)	1.19
k) Return on Investment	11.29	(0.01)	11.28

DISCLOSURE OF ACCOUNTING TREATMENT:

In the preparation of the financial statements for the year ended 31st March, 2026, the applicable Indian Accounting Standards ("Ind AS") have been followed. Pursuant to the notification dated February 16, 2015 issued by Ministry of Corporate Affairs, the Company has adopted the Indian Accounting Standards ("Ind AS") notified under the Companies (Indian Accounting Standards) Rules, 2015 with effect from April 1, 2017.

Place: Chennai	By Order of the Board
Date: 03.07.2026	For S V GLOBAL MILL LIMITED
	Sd/-
	E. SHANMUGAM
	Chairman
	DIN:00041968