Samor Reality Ltd Management Discussions

GLOBAL ECONOMIC OVERVIEW

The Indian real estate sector continues to remain an important contributor to economic growth, urbanisation and employment generation. The sector has demonstrated resilience amid global economic uncertainties, supported by sustained domestic demand, infrastructure development, rising household incomes, urbanisation and increasing institutional participation. Indias real estate market was estimated at approximately US$ 650 billion in 2025 and is projected to expand significantly over the coming decades, with the sector expected to play an increasingly important role in the countrys economic development.

The residential real estate market has undergone a phase of consolidation, with a gradual shift from volume-led growth towards value-led growth. During 2025, housing sales in the top seven cities moderated to approximately 3.96 lakh units, representing a decline of around 14% from 2024 levels. However, the overall value of housing sales increased by approximately 6% and crossed ?6 lakh crore, reflecting sustained demand for premium and luxury housing. The market is expected to remain broadly balanced in 2026, with calibrated supply, stable underlying demand and continued preference for quality and well-located properties.

The premium and luxury housing segment continues to be a significant growth driver. Buyers are increasingly demonstrating a preference for larger, better-located and higher-quality homes, supported by improving household incomes and changing lifestyle aspirations. The residential market is also witnessing increasing interest in branded residences and professionally managed housing formats. At the same time, affordability is expected to stabilise gradually as income growth improves relative to property price growth, supporting end-user demand over the medium term.

The commercial real estate sector continues to demonstrate strong fundamentals. Indias office market recorded a record 82.6 million square feet of leasing activity during 2025, supported by the expansion of domestic corporates and Global Capability Centres (GCCs). The office market is expected to maintain its growth momentum in 2026, with occupiers increasingly focusing on premium, technology-enabled and high-quality office spaces. Indias office stock is also expected to exceed one billion square feet during 2026, reflecting the continued expansion of the organised commercial real estate market.

The retail real estate segment is also expected to remain on a growth trajectory during 2026. Organised retail is witnessing increasing demand for investment-grade malls, high streets and experience-led retail destinations. The growing preference for mixed-use developments, destination retail, food and beverage offerings and premium lifestyle brands is expected to support retail leasing and expansion. Developers and retailers are increasingly focusing on quality locations, consumer experience and integration with transportation and urban infrastructure.

Investment activity in Indian real estate has also strengthened considerably. Equity inflows into the sector exceeded US$14 billion in 2025, representing an all-time high, with significant investments directed towards land and development sites, office assets and warehousing. Investment momentum is expected to remain strong in 2026, supported by institutional capital and increasing interest in residential, office, mixed-use, warehousing and datacentre developments. The growing role of REITs and InvITs is further contributing to the institutionalisation and formalisation of the real estate investment ecosystem.

Rapid urbanisation remains one of the key structural drivers of Indias real estate sector. Indias urban population is projected to continue increasing substantially, creating sustained demand for housing, commercial spaces, retail destinations and supporting infrastructure. The sector is also benefiting from improvements in physical infrastructure, digitalisation, regulatory reforms and increasing transparency following initiatives such as the Real Estate (Regulation and Development) Act, 2016 (RERA).

Going forward, the Indian real estate sector is expected to remain fundamentally resilient, although growth may vary across geographies and asset classes. Key trends likely to shape the sector include premiumisation of residential demand, increasing institutional investment, expansion of GCCs, growth of organised retail, development of logistics and warehousing infrastructure, data-centre expansion and greater adoption of technology and sustainability in real estate development.

Overall, the outlook for the Indian real estate sector remains positive, supported by favourable demographic trends, urbanisation, infrastructure development, improving consumer aspirations and increasing institutional participation. While interest rates, property prices, global economic conditions, regulatory developments and affordability may continue to influence near-term demand, the long-term fundamentals of the Indian real estate market remain strong.

OPPORTUNITIES AND THREATS

Opportunities

As India awaits policy reforms to pick up speed, your Company firmly believes that the demand for Real Estate in a country like India should remain strong in the medium to long term. Your Companys well accepted brand, contemporary architecture, well designed projects in strategic locations, strong balance sheet and stable financial performance even in testing times make it a preferred choice for customers and shareholders. Your Company is ideally placed to further strengthen its development potential by acquiring new land parcels.

Challenges

While the management of your Company is confident of creating and exploiting the opportunities, it also finds the following challenges:

• Unanticipated delays in project approvals;

• Availability of accomplished and trained labour force;

• Increased cost of manpower;

• Rising cost of construction lead by increase in commodity prices;

• Growth in auxiliary infrastructure facilities; and

• Over regulated environment.

Segment wise Performance

The Company is operating only in one segment. The turnover/performance of the Company has been disclosed in the Directors report under the Head "Review of Operations, sales and working results."

Recent Trend and Future Outlook

Your Company remains committed to upholding the highest standards of governance, transparency, and ethical practices. With India racing towards growth and becoming a strong economy, we look forward to emerge as a strong, reliable, and sustainable company. Together, we shall embrace the future with optimism, determination, and the desire to build a brighter tomorrow.

Risks and Concerns

Market price fluctuation

The performance of your Company may be affected by the sales of its projects. These prices are driven by prevailing market conditions, the nature and location of the projects and other factors such as brand, reputation and the design of the projects. Your Company follows a prudent business model and tries to ensure steady cash flow even during adverse pricing scenario

Sales volume

The volume of bookings depends on the ability to design projects that will meet customer preferences, getting various approvals in time, general market factors, project launch and customer trust in entering into sale agreements well in advance of receiving possession of the projects. Your Company sells its projects in phases from the time it launches the project, based on the type and scale of the project and depending on market conditions

Execution

Execution depends on several factors which include labour availability, raw material prices, receipt of approvals and regulatory clearances, access to utilities such as electricity and water, weather conditions and the absence of contingencies such as litigation. Your Company manages the adversities with cautious approach, meticulous planning and by engaging established and reputed contractors. As your Company imports various materials, at times execution is also dependent upon timely shipment and clearance of the material.

Financing costs

The acquisition of land and development rights needs substantial capital outflow. Inadequate funding resources and high interest costs may impact regular business and operations. Your Company has always tried to build sufficient reserves resulting out of operating cash flows to take advantage of any land acquisition or development opportunity.

Details of Significant Changes in Key Financial Ratios

Particula rs	As at March 31, 2026	As at March 31, 2025
(i) Current Ratio = Current Assets/Current Liabilities
Current Ratio (In Times)	9.66	4.44
Current Assets	11,087.35	8,497.86
Current 1 iabilities	1,147.55	1,914.66
% Change from Previous Period/ Year	117.69%	-
Comment : Increase is primarily due to a decrease in current liabilities, particularly borrowings from outsiders.
(ii) Debt- Equity Ratio = Total Debt/ Shareholders Equity
Debt - Equity Ratio (in Times)	0.40	0.67
Total Debts	2,543.00	4,094.99
Share holders Equity	6,309.10	6,117.84
% Change from Previous Period/ Year	-39.78%	-
Comment : Decrease is primarily due to repayment/reduction of borrowings during the year.
(iii) Debt Service Coverage Ratio ( DSCR) = Earnings Available for debt Service/ Debt Service
Debt Service Coverage Ratio (in Times)	0.30	0.84
Earnings before exceptional items, interest and tax (EBIT)	143.46	375.11
[Finance cost + principal repayments made during the period for non-current borrowings (including current maturities)]	470.73	448.83
% Change from Previous Period/ Year	-63.53%	-
Comment : Decrease is mainly due to lower earnings available for debt servicing during the year.
(iv) Return on Equity Ratio = Net Profit After Tax/ (Share holders Equity - Misc Expenses)
Return on Equity Ratio %	-10.97%	-1.14%
Net profit after taxes less preference dividend	(681.83)	(62.71)
Average shareholders equity	6,213.47	5,494.40
% Change from Previous Period/ Year	861.40%	-
Comment : Change is primarily due to the increase in loss during the year, resulting in a significantly negative return on equity.
(v) Inventory Turnover Ratio = Cost of Goods Sold/ Average Inventory
Inventory Turnover Ratio (in Times)	0.19	0.38
Cost of Goods Sold	1,770.53	2,654.73
Average Inventory	9,130.42	6,917.79
% Change from Previous Period/ Year	-49.47%	-
Comment : Decrease is mainly due to higher average inventory during the year.
(vi) Trade Receivables Turnover Ratio = Net Credit Sales/ Average Trade Recievables
Trade Receivables Turnover Ratio (in Times)	-	-
Net credit sales	-	-
Average Trade receivables	-	-
% Change from Previous Period/ Year	-	-
(vii) Trade Payable Turnover Ratio = Net Credit Purchase/ Average Trade Payables
Trade Payable Turnover Ratio (in Times)	4.79	6.77
Net credit purchases	1,435.34	2,145.82
Average Trade payables	299.94	316.86
% Change from Previous Period/ Year	-29.34%	-
Comment : Decrease is mainly due to lower credit purchases during the year.
(viii) Net Capital Turnover Ratio = Revenue From Operations/ Average Working Capital
Net Capital Turnover Ratio (in Times)	-	-
Revenue from Operations	-	-
Average Working Capital	8,262	5,742
% Change from Previous Period/ Year	0.00%	-
(ix) Net Profit Ratio = Net Profit After Tax/ Revenue from Operations
Net Profit Ratio (in %)	0.00%	0.00%
Profit After Tax	(681.83)	(62.71)
Revenue From Opearations	-	-
% Change from Previous Period/ Year	0.00%	-
(x) Return on Capital Employed = Earnings before Interest & Tax/ Total Assets less current liability excluding short term borrowing
Return on Capital Employed (in %)	2.27%	6.13%
Earnings before interest & Tax	143.46	375.11
Capital Employed	6,309.10	6,117.84
% Change from Previous Period/ Year	-62.91%	-
Comment : Decrease is primarily due to lower EBIT during the year.

Internal Control Systems and their Adequacy

The Company has adequate internal audit and control systems. Internal auditors comprising of Chartered Accountants have been entrusted the job to conduct regular internal audits at all units and report the lapses, if any, to the management. Both Internal auditors and Statutory auditors independently evaluate the adequacy of internal control system. Based on the audit observations and suggestions, follow up and remedial measures are being taken including review and increase in the scope of coverage, wherever necessary. The Audit Committee of Directors in its periodical meetings, review the adequacy of internal control systems and procedures and suggest areas of improvements.

Material Developments in Human Resources and Industrial Relations Front

The Company has continued to give special attention to Human Resources/ Industrial relations development. Industrial relations remained cordial throughout the year and there was no incidence of strike, lock out etc.

Financial Performance with respect to Operational Performance

PARTICULARS	Standalone
	31.03.2026	31.03.2025
IX. Net Sales / Income from Operations	0	0
X. Other Income	23.37	0
XI. Total Revenue (I+II)	23.37	0
XII. Earnings Before Interest, Taxes, Depreciation and Amortization Expense	(264.91)	(71.10)
XIII. Finance Cost	0	0
XIV. Depreciation and Amortization Expense	2.64	2.62
XV. Profit Before Tax (IV-V-VI)	(267.55)	(73.72)
XVI. Tax Expense:
Less: Current Tax Expense	617.14	31.67
Less: Deferred Tax	(209.03)	(42.82)
Short Provision for tax	6.17	0.16
Profit After Tax (VII-VIII)	(681.83)	(62.71)

Cautionary Statement

Statement in this Management Discussion and Analysis Report, Describing the Companys objectives, estimated and expectations may constitute "Forwarding Looking Statements" within the meaning of applicable laws or regulations. Actual results might differ materially from those either expressed or implied.

For and on behalf of Board of Directors	Birjukumar Ajitbhai Shah	Jagrutiben Birjubhai Shah
Samor Reality Limited	Managing Director & CFO	Whole Time Director
Date: 05th September 2026	DIN: 02323418	DIN: 02334894
Place: Ahmedabad