Shraddha Prime Projects Ltd Management Discussions

Annexure I

(a) Economic Environment and Industry Overview Global Economic Outlook

The global economy in 2025 remained resilient despite geopolitical uncertainties, evolving trade dynamics and tighter financial conditions. According to the IMFs January 2026 World Economic Outlook Update, global growth remained stable at approximately 3.3%, supported by private sector adaptability, policy support and continued investment in infrastructure and technology.

At the same time, global trade policies, geopolitical developments, commodity prices and financial continued to presentriskstothepaceofrecovery.Inflationhas moderated from the elevated levels witnessed in the earlier period, although the pace of disinflation remains uneven across economies.

The global environment is expected to remain characterized by a combination of opportunities and uncertainties. For India, continued domestic demand, infrastructure investment and improving economic fundamentals provide a relatively favourable backdrop. The Companys operations remain focused on the domestic residential real estate market, and therefore its performance is primarily influenced by developments in the Indian economy and the

Mumbai Metropolitan Region.

Indian Economic Outlook

India continued to demonstrate strong economic momentum during FY26, supported by domestic consumption, investment activity, infrastructure spending and improving macroeconomic stability. According to the First Advance

Estimates released by the Government, real GDP growth for FY26 was estimated at 7.4%, reflecting continued resilience in economic activity.

The Governments continued focus on infrastructure and capital expenditure is expected to support economic activity and improve connectivity across major urban and emerging growth centres. Public capital expenditure proposed for FY27 is approximately 12.2 lakh crore, reflecting the continued emphasis on infrastructure-led development.

The monetary environment has also become more supportive. The RBI reduced the policy repo rate during FY26, bringing it to 5.25%, which has improved borrowing conditions for households and businesses. Lower financing costs can support housing affordability and contribute to improved residential demand.

The Indian economy continues to benefit from structural factors such as urbanisation, rising household incomes, expanding infrastructure, increasing formalisation and improving connectivity. These factors are expected to remain supportive of residential real estate demand over the medium to long term.

Indian Real Estate Industry

The Indian residential real estate sector continued to witness healthy demand during FY26, with the market increasingly shifting from volume-led growth towards value-led growth and premiumization.

Homebuyers are showing greater preference for better located properties, larger homes, improved amenities and higher construction quality. This has resulted in stronger demand for premium and mid-premium housing, particularly in established urban markets.

The sector is also witnessing increasing importance of organized developers with established execution capabilities, access to capital and strong customer relationships. Greater transparency following the implementation of RERA has further strengthened customer confidence and encouraged the consolidation of the industry.

Redevelopment has emerged as an important structural opportunity, particularly in densely populated cities where availability of vacant land is limited. Redevelopment enables developers to participate in established residential locations while addressing ageing housing stock and meeting the changing aspirations of homebuyers.

For companies with experience in redevelopment, strong relationships with housing societies and established execution capabilities, the opportunity remains significant.

Mumbai Metropolitan Region Real Estate Outlook

Mumbai continues to be one of Indias most established and valuable residential real estate markets. Strong employment opportunities established social infrastructure, high purchasing power and limited availability of developable land continue to support residential demand across the Mumbai Metropolitan Region.

The market has also witnessed a clear shift towards premiumization. Buyers are increasingly looking for larger homes, better amenities, improved layouts and higher construction standards. This trend is particularly relevant in established residential micro-markets where availability of new housing supply remains constrained.

Infrastructure development is further improving connectivity across Mumbai and the wider MMR. Metro expansion, road infrastructure, the Mumbai Trans Harbour Link, Coastal Road and other connectivity projects are strengthening linkages between established residential locations and emerging growth corridors.

Redevelopment continues to be an important driver of housing supply in Mumbai. The combination of ageing housing societies, limited availability of vacant land and strong demand for well-located residential properties creates a sizeable opportunity for experienced redevelopment developers.

Shraddha Prime is positioned to participate in this opportunity through its focus on redevelopment across established Mumbai micro-markets. The Companys portfolio has expanded across Bhandup, Mulund, Kanjurmarg, Vikhroli,

Borivali, Kandivali, Jogeshwari, Thane and other locations, providing a diversified presence across the MMR.

FY26 Business Performance and Portfolio Development

FY26 represented an important year in the Companys growthjourney,with significantexpansion in its development portfolio.

The Companys running project portfolio increased to approximately 2,500 crore of GDV, compared with approximately 400 crore two years earlier. During FY26, the Company added six new projects with combined

GDV of approximately 900 crore, strengthening its development pipeline and future revenue visibility.

The Company also made meaningful progress on project approvals during the year and subsequently received

Commencement Certificates for Shraddha Phoenix in Mulund East and Shraddha Paradise Enclave in Mulund West.

Shraddha Phoenix comprises approximately 75,355 sq. ft. of residential RERA carpet area and has an estimated revenue potential of approximately 150 crore. Shraddha Paradise Enclave comprises approximately 1,30,000 sq. ft. of residential and 20,000 sq. ft. of commercial RERA carpet area, with estimated revenue potential of approximately 450 crore.

The Companys current development pipeline comprises 9 ongoing projects and 8 upcoming projects, providing visibility across multiple Mumbai micro-markets.

The Company has also continued to strengthen its premium housing portfolio. The addition of Avyukta Imperial in Matunga East provides exposure to an established Central Mumbai micro-market and represents the Companys continued transition towards larger-format premium residences.

(b) Opportunities and Threats Opportunities

The Company continues significantopportunities arising from the sustained growth in demand for residential see real estate. Increasing urbanisation, changing customer preferences, rising household incomes and the growing need for quality housing are expected to support the long-term growth of the residential property market. The

Company is well positioned to benefit from these trends through the development of residential projects in markets offering favourable growth prospects.

The growing demand for well-planned, quality and strategically located residential properties provides opportunities to increase project launches, sales and overall market presence. The Company may also benefit from opportunities to expand its project portfolio, strengthen its presence in existing markets and explore new locations with attractive demand potential. In addition, the adoption of technology, efficient project management and customer-focused sales practices can support improved operational efficiency and enhance customer experience.

Threats and Risks

Despite the positive demand environment, the residential real estate sector remains subject to various external and operational risks. Rising costs of construction materials, labour and other inputs may put pressure on project margins and profitability. Any increase in interest rates, changes in lending conditions or reduction in housing affordability could affect customers purchasing decisions and overall demand.

The Company also faces competition from established and emerging real estate developers, which may result in pricing pressure and higher marketing and customer acquisition costs. Delays in obtaining approvals, changes in government policies and regulations, availability of land, project execution challenges and potential delays in construction may adversely affect project timelines and cash flows.

Market conditions may also change due to broader economic factors, including inflation, employment levels, interest ratesandconsumerconfidence.Accordingly, while the Company remains positive about the long-term growth potential of the residential real estate sector, it continues to monitor market developments and focus on prudent project selection, effective cost management, timely execution and disciplined financial management.

(c) Segment wise Performance

The Company is engaged in Real Estate Business and in single operating segment.

Residential Real Estate Segment: In the Residential Real Estate segment, SPPL has continued its strong performance by successfully launching and completing several high-quality residential projects during the fiscal year. The demand for affordable housing remained robust, leading to increased sales and healthy revenue growth. The Companys focus on timely project execution, innovative designs, and customer-centric approach has contributed to positive customer feedback and increased brand loyalty.

Commercial Real Estate Segment: SPPLs Commercial Real Estate segment has witnessed steady progress in FY 2025-2026. The strategic location of these properties and the implementation of modern amenities have attracted reputable businesses, contributing to a positive occupancy rate. SPPL remains committed to exploring opportunities for expanding its commercial real estate portfolio in line with market demand.

(d) Outlook

Shraddha Prime enters FY27 with a significantly larger and morediversifieddevelopment portfolio and a clearer focus on redevelopment-led growth and premium housing.

The Companys running project portfolio has expanded to approximately 2,500 crore of GDV, supported by six projects added during FY26 with combined GDV of approximately 900 crore. The Company currently has nine ongoing and eight upcoming projects, providing a visible development pipeline across Mumbais key residential micro-markets.

The receipt of Commencement Certificates for Shraddha Phoenix and Shraddha Paradise Enclave represents an important milestone as these projects move closer to execution. Together with the Companys existing developments, these projects are expected to contribute to the Companys growth over the coming years.

The Company intends to remain focused on redevelopment-led growth across Mumbai and the MMR, particularly in established residential locations where land availability is constrained and redevelopment provides an attractive development opportunity.

At the same time, the Company will continue to increase its exposure to premium and larger-format housing in line with evolving customer preferences. The Companys transition from 1RK and 1BHK formats towards 2BHK,

3BHK and 4BHK residences reflects this evolution in its portfolio.

The broader operating environment remains constructive, supported by Indias economic growth, infrastructure investment, improving urban connectivity and relatively favourable financing conditions. Mumbais established residential market, limited land availability andsignificantredevelopment potential provide a favourable structural backdrop for the Companys business.

Managements focus for FY27 will remain on timely project execution, efficient capital deployment, strengthening customer and society relationships, improving collections and selectively adding projects that meet the Companys location, demand and return criteria.

The Company remains cautiously optimistic about its growth prospects and believes that its redevelopment expertise, expanding geographical presence, premiumization strategy and growing project pipeline provide a strong foundation for the next phase of growth.

(e) Risks and concerns

SPPL recognizes the inherent risks associated with the real estate sector, including fluctuations in market demand, changes in interest rates and regulatory requirements, rising construction and input costs, competitive pressures, and potential delays in project execution. In the current environment of sustained residential demand coupled with evolving economic and regulatory conditions, the Company continues to adopt a proactive and disciplined approach to risk management. SPPL closely monitors market trends, customer preferences, project economics and regulatory developments to identify and mitigate potential risks at an early stage. The Company also focuses on prudent project selection, effective cost and cash-flow management, timely project execution, and adherence to applicable statutory and regulatory requirements. Its sound financial position and disciplined financial management provide resilience and flexibility to navigate market uncertainties while supporting the Companys continued growth objectives.

(f) Internal control systems and their adequacy

SPPL has established an appropriate internal control framework commensurate with the size, scale and nature of its operations. The internal control systems are designed to safeguard the Companys assets, ensure accuracy and reliability of financial and operational information, promote operational efficiency, and ensure compliance applicable laws, regulations and internal policies.

The Company maintains appropriate controls over key business processes, including project development and execution, procurement, financial reporting, cash flows, sales and collections, and statutory compliances. These controls are periodically reviewed by the management to ensure their effectiveness and to identify areas requiring strengthening in response to changes in the business and regulatory environment.

Management believes that the internal control systems in place are adequateandoperatingeffectivelyto mitigate identified risks and support the Companys business objectives. The Company remains committed to continuously strengthening its control environment through regular monitoring, timely corrective actions and improved processes and systems.

(g) Discussion on Financial Performance with respect to Operational Performance

During the fiscal year 2025-2026, SPPL achievedsignificantmilestones despite a challenging economic environment.

The companys financial performance demonstrated resilience and growth across various key indicators.

1. Revenue Generation: SPPLs total revenue for the year increased marginally compared to the previous fiscal year, driven by a combination of factors such as successful project completions, increased demand for real estate properties, and effective sales and marketing strategies.

2. Profitability: The companys operating profit on consolidated basis margin remained healthy, reflecting effectivecost management and operational efficiency. SPPLs netprofitalso witnessed a notable improvement, showcasing the companys ability to generate returns for its stakeholders.

3. Debt Management: SPPL continued its prudent debt management approach, but looking into the ongoing projects there was increase in overall debt levels. Company aims to reduce the debt position in years to come, which will strengthened the companys financial position and reduced its exposure to financial risks, enabling it to allocate resources strategically and pursue growth opportunities.

Operational Performance Analysis:

SPPLs operational performance during the fiscal year 2025-2026 further enhanced its position innovative player in the real estate industry.

1. Project Development: The Company successfully completed and delivered Shraddha Priva, Mulund West during the year, demonstrating its commitment to timely project execution and quality construction. These projects contributed significantly to revenue generation and customer satisfaction.

2. Customer Engagement: SPPL continued its customer-centric approach by focusing on personalized service, transparent communication, and addressing customer feedback. This approach resulted in a high level of customer satisfaction and enhanced brand loyalty.

3. Market Penetration: The Company strategically expanded its presence in key markets, capitalizing on emerging trends and opportunities. SPPLs market research and analysis enabled it to identify underserved segments, driving demand and sales growth.

4. Sustainability Initiatives: SPPL remains dedicated to sustainable practices and environmental responsibility.

The implementation of energy-efficient technologies and green building standards not only aligns with our corporate values but also positions us as a responsible and forward-thinking organization.

(h) Material developments in Human Resources / Industrial Relations front including number of people employed

As of 31st March, 2026, SPPL had 49 employees. The Company is supported by experienced consultants and external professionals engaged as required for various projects and specialised functions.

During FY 2025 26, there were no material developments adversely affecting the Companys human resources or industrial relations. The Company continues to maintain a professional, collaborative and conducive work environment and remains focused on attracting, retaining and developing talent aligned with its business requirements. Management continues to review its manpower needs in line with the Companys growth plans and project pipeline.

The Company maintains cordial relations with its employees and consultants, and therewerenosignificantindustrial relations issues reported during the year under review.

2. Industrial Relations and Employee Engagement:

SPPL maintains cordial and constructive relations with its employees and is committed to fostering a positive, inclusive and professional work environment. The Company encourages open communication, teamwork and employee participation, while providing opportunities for professional development and skill enhancement.

During FY 2025 26, the Company did not experience any significant industrial relations issues or disruptions.

Management continues to engage with employees regularly and remains focused on employee well-being, retention and creating a motivated workforce that supports the Companys business objectives and sustainable growth.

3. Employee Strength:

As at the end of FY 2025 26, SPPL had a workforce of 49 employees, supported by a network of external consultants and specialised professionals engaged across various projects and functions. The Companys human capital comprises individuals with diverse qualifications,experience and functional expertise, enabling it to effectively manage its business operations and project requirements.

SPPL recognizes its employees and professional consultants as an important enabler of sustainable growth. The Company remains focused on fostering a professional and collaborative work environment, while leveraging specialised external expertise wherever required to support project execution, regulatory compliance and other critical business functions.

Forward-Looking Statement

Statements in this Management Discussion and Analysis relating to the Companys objectives, expectations, plans, projections or future performance may constitute forward-looking statements under applicable securities laws and regulations.

Such statements are based on managements current expectations and assumptions and are subject to various risks and uncertainties. Actual results may differ materially from those expressed or implied due to changes in economic conditions, government regulations, interest rates, construction costs, project approvals, financing availability, customer demand, market conditions and other factors.

The Company undertakes no obligation to publicly update or revise any forward-looking statements to reflect subsequent events or developments.