Shriram Properties Ltd Management Discussions

Company overview

BUILDING ON A LEGACY. EXECUTING THE NEXT PHASE OF GROWTH.

For over 25 years, Shriram Properties Limited (SPL or the Company) has built thoughtfully designed homes, delivered projects with quality, consistency and reliability and earned the trust of customers, investors, financial institutions and business partners. Today, SPL is one of Indias leading listed residential real estate developers with a strong footprint across major urban markets such as Bengaluru, Chennai, Kolkata and Pune.

As of March 31, 2026, the Company has delivered 31.5 msf across 51 completed projects, creating vibrant communities for more than 25,000 families. Anchored by a diversified portfolio of ongoing and upcoming developments, SPL continues to strengthen its position in the resilient mid-market and mid-premium housing segments.

FROM TRANSFORMATION MOMENTUM TO EXECUTION EXCELLENCE

The financial year 2025-26 (FY26) marked a defining phase in #SPLNxT, the Companys long-term strategic roadmap for accelerating profitable and sustainable growth. With clear and measurable ambitions set through FY28, the strategy is focused on scaling the business through disciplined execution, capital-efficient growth and sustained value creation for stakeholders.

Building on the brand transformation and strategic repositioning undertaken in FY25, the Company transitioned from establishing its strategic priorities to translating them into tangible business outcomes. Stronger focus on business development, execution excellence, customer-centricity and financial discipline further reinforced the Companys foundation and positioned it for the next phase of growth.

#SPLNxT: FY28 growth ambitions

FY25 baseline	FY28 ambition
Pre-sales value	2 growth
Revenue recognition	3 growth
Profit before tax	4 growth

FY26 provided early evidence of the #SPLNxT roadmap in action. Despite significant external headwinds in some of its core markets (relating to approval timing, completion certificates (OC/CC) or e-Khata issues impacting handover and registrations) during parts of the year, the Company closed the year with a sharp execution-led recovery, record handovers, its highest-ever revenues and record profits. Net profit crossed the strategically significant milestone of H100 crore in FY26. This demonstrated the scalability of SPLs operating platform and its ability to convert project readiness into financial performance.

EXECUTION: A COMPETITIVE ADVANTAGE

Execution remains the defining strength of SPL.

The Companys integrated governance framework spans project sourcing, approvals, construction management, and customer handovers, supported by disciplined capital deployment, processes and technology-enabled monitoring. This capability was evident during FY26, when strong cross-functional coordination enabled the Company to overcome approval-related challenges, accelerate customer handovers and finish the year with record deliveries and its highest-ever revenue and profits.

CAPITAL-EFFICIENT GROWTH

SPLs growth strategy is anchored in a capital-light development model that increasingly leverages joint development agreements (JDAs) and joint ventures (JVs). Amidst changing market dynamics among landowners, this approach enables the Company to expand its development pipeline while preserving financial flexibility, maintaining prudent leverage and improving capital efficiency.

GOVERNANCE AND CUSTOMER TRUST

Strong governance and customer-centricity remain fundamental to SPLs operating philosophy. Transparent business practices, responsible governance, robust internal controls and timely delivery of thoughtfully designed products have helped in building lasting stakeholder relationships while reinforcing the Companys reputation as a trusted residential developer.

LOOKING AHEAD

Indias residential real estate sector continues to benefit from favourable demographics, rapid urbanisation, infrastructure investments and increasing preference for organised developers. With a strengthened brand, expanding development pipeline, scalable operating platform and disciplined financial framework, SPL enters the next phase of its #SPLNxT journey well positioned to deliver sustainable growth and long-term value for all stakeholders.

Indian economy

INDIA CONTINUES TO LEAD GLOBAL GROWTH

India continued to outperform most major economies during FY26, reinforcing its position as one of the worlds fastest-growing large economies. The economy remained resilient despite global geopolitical uncertainties, elevated energy prices and external headwinds, supported by strong domestic consumption, sustained public capital expenditure, robust services activity and healthy investment momentum. According to the National Statistical Office (NSO), Indias real GDP is estimated to have grown by 7.7% in FY26. The Governments continued emphasis on infrastructure development through higher capital expenditure, alongside transformative initiatives such as PM Gati Shakti, the National Infrastructure Pipeline (NIP) and the Production Linked Incentive (PLI) scheme, continued to strengthen the countrys long-term growth potential.

Indias growth story remains favourable for residential real estate because it is being supported by a combination of domestic consumption, infrastructure-led urban expansion, formal employment growth and improving financial conditions, supplemented by increasing desire for home ownership. For housing demand, this matters because macroeconomic growth is increasingly translating into city-level opportunities around employment hubs, transit corridors and expanding middle-class households.

The Indian middle-class advantage

Indias expanding middle class remains one of the strongest long-term drivers of housing demand. With the middle class estimated to comprise about 31% of Indias population and expected to expand further over the next decade with increasing urbanisation, the demand base for organised, well-located and aspiration-led housing is expected to deepen. This is especially relevant for mid-market and mid-premium residential developers, like SPL, where affordability, upgradation demand and homeownership aspirations intersect.

While the medium-term outlook remains favourable, the economy is navigating a period of evolving technological and geopolitical change. The rapid adoption of artificial intelligence (AI) has led to concerns around employment in select sectors, influencing consumer sentiment and discretionary spending decisions. However, these concerns are being partly offset by continued expansion of Global Capability Centres (GCCs), rising investments in the manufacturing and technology-led sectors, which continue to generate high-quality employment opportunities across Indias leading metropolitan markets. Although prolonged geopolitical tensions, elevated energy prices and inflationary pressures could moderate consumption in the near-term,

Indias favourable demographics, rapid urbanisation, rising incomes and improving infrastructure are expected to sustain long-term economic growth. With the Reserve Bank of India projecting 6.7% real GDP growth for FY27, the country remains well positioned to support sustained demand across the residential real estate sector.

Indian residential real estate sector

TRAVERSING THROUGH A MULTI-YEAR STRUCTURAL GROWTH CYCLE

Indias residential real estate sector continued to move from broad-based volume expansion to more value-led and quality-led growth. While sales volumes across the top cities moderated in CY25, demand remained resilient in established urban markets, supported by higher ticket sizes, preference for branded developers, better-located projects and sustained appetite for upgraded living. Demand showcased a K-shaped trend in the top markets as branded/well-known developers continued to grow despite the broader market moderation. This indicates that demand has not weakened structurally; rather, it has become more selective, with buyers prioritising trust, execution track record, product relevance and long-term value.

Homebuyer preferences are also evolving rapidly, with increasing emphasis on quality construction, trusted brands, lifestyle amenities, sustainability and long-term value. While premium housing continues to gain traction, the mid-market and mid-premium segments remain the largest contributors to residential demand, offering an attractive balance of affordability and aspiration. These structural trends continue to create significant long-term growth opportunities for organised developers such as SPL.

Industry consolidation theme continued, with larger brands showing growth and market share expansion in core markets. The K-shaped trend was visible in most core markets that accounted for large majority of residential housing demand in the country.

Megatrends reshaping housing demand

URBANISATION

Indias rapid urbanisation continues to drive migration towards major cities in search of better employment opportunities and improved quality of life. This structural shift is creating sustained demand for organised residential developments across well-connected urban growth corridors. United Nations (the World Cities Report), Indias urban share is expected to rise from roughly 35%–36% now to 43.2% by 2035 (reaching ~607 million by 2030 and 675 million by 2035). Coupled with growing desire for owning homes among younger generations, a shift witnessed more prominently during the post-COVID era, this points towards a strong and consistent demand for housing in the core markets across regions.

Source: UN World Urbanisation Prospects 2025; Ministry of Housing & Urban Affairs, Government of India, World Banks 2025 India urban resilience report

PREMIUMISATION

Premiumisation is no longer limited to luxury housing. Across mid-market and mid-premium categories, homebuyers are increasingly seeking larger homes, better amenities, wellness-led spaces, improved connectivity and community infrastructure, while remaining conscious of affordability. This has created demand for products that combine aspiration, functionality and value, particularly in employment-led urban markets.

INFRASTRUCTURE-LED GROWTH

Investments in metro rail networks, highways, airports and industrial corridors are transforming connectivity and unlocking new residential micro-markets. These infrastructure-led developments continue to create long-term opportunities across SPLs core operating markets. For residential real estate, infrastructure is not only a mobility enabler but also a micro-market creator. Metro connectivity, arterial roads, airports and industrial corridors improve access to employment hubs, reduce commute friction and support the emergence of new residential catchments. Developers with strong local market knowledge and execution discipline are better placed to identify such corridors early and phase supply responsibly.

GLOBAL CAPABILITY CENTRES (GCCS)

Indias emergence as a global hub for Global Capability Centres continues to support employment-led housing demand across technology, engineering, analytics and financial services. Bengaluru, Chennai and Pune remain important beneficiaries of this trend. While AI-led disruption may create near-term uncertainty around certain job profiles, the continued expansion of GCCs and higher-value technology functions can partly offset this risk by supporting skilled employment, office absorption and residential demand near major commercial corridors.

INTEREST RATES AND AFFORDABILITY

Improving monetary conditions have supported housing sentiment, with lower policy rates expected to gradually improve home loan affordability and customer conversion. However, affordability remains influenced by multiple variables, including property prices, income growth, construction costs, land values and ticket sizes. As a result, developers need to remain disciplined in product configuration, pricing and micro-market selection, particularly in price-sensitive mid-market categories.

HOUSING FINANCE

Improved access to housing finance, supported by wider banking penetration and competitive mortgage products at competitive interest rates, has enhanced home affordability. This continues to encourage both first-time homebuyers and existing homeowners looking to upgrade.

INDUSTRY CONSOLIDATION

The residential real estate sector continues to consolidate in favour of organised and credible developers with strong execution capabilities. Increasing customer preference for quality, transparency and timely delivery is creating long-term growth opportunities for established players such as SPL.

LISTED AND GRADE-A DEVELOPERS SUPPLY SHARE IN CY25

The operating environment, however, remains nuanced. Approval timelines, city-specific regulatory transitions, input cost movements, affordability pressures and employment-linked sentiment can influence launch calendars and absorption. In this environment, organised developers with established delivery track records, stronger governance, access to institutional capital and disciplined launch-phasing are better positioned to navigate volatility.

OUTLOOK

The outlook for Indias residential real estate sector remains positive, supported by favourable demographics, rapid urbanisation, infrastructure investments, expanding employment opportunities and continued industry consolidation. While near-term demand may be influenced by macroeconomic uncertainties, global tensions and geopolitical concerns-led elevated energy prices, inflationary pressures and interest rate movements, the structural drivers of housing demand remain firmly intact.

Importantly, the current real estate cycle differs significantly from previous up-cycles. The sector has witnessed disciplined supply additions, low inventory overhang, stronger developer balance sheets and improved financial discipline, supported by a significant reduction in leverage over the past decade. Increasing preference for organised developers has created a healthier and more resilient operating environment, reducing the risk of the excesses witnessed in earlier cycles. Although pricing growth has moderated compared to the sharp increases seen in FY21-25, positive trends persist. Disciplined supply and housing price increases bode well for sustaining the resilience of end-user demand. An increase in housing loan rates remains a risk to demand momentum.

As industry continues to consolidate, organised developers with strong governance, execution capabilities and prudent capital allocation are expected to strengthen their market position and deliver superior growth. Supported by healthy operating cash flows and disciplined business development, the sector remains well placed to sustain long-term value creation despite short-term market fluctuations.

For SPL, these structural tailwinds align closely with the Companys #SPLNxT strategic roadmap. Its presence in high-growth urban markets, focus on the mid-market and mid-premium segments, asset-light development model and disciplined execution capabilities position the Company to capitalise on the next phase of Indias residential real estate growth story while continuing to deliver sustainable long-term value for all stakeholders.

SPLs core markets

INVESTING IN INDIAS MOST ATTRACTIVE RESIDENTIAL GROWTH MARKETS: A FOCUSED MULTI-CITY STRATEGY

SPL has adopted a focused multi-city strategy centred on high-growth urban markets that offer favourable demographic trends, robust employment generation, expanding infrastructure and sustained residential demand. The Companys presence across Bengaluru, Chennai, Kolkata and Pune provides a balanced portfolio of mature and emerging residential markets, each supported by distinct economic drivers while collectively reducing dependence on any single geography or demand cycle.

This approach enables SPL to allocate capital selectively towards micro-markets where long-term fundamentals remain strong, customer demand is resilient and infrastructure investments continue to unlock new growth corridors.

Bengaluru

INDIAS TECHNOLOGY CAPITAL DRIVING LONG-TERM HOUSING DEMAND

Bengaluru remains SPLs largest and most strategic market, supported by its leadership in technology, global capability centres (GCCs), biotechnology, aerospace, fintech, advanced manufacturing and the startup ecosystem.

Continued employment generation, a highly skilled workforce and sustained investments in infrastructure, including Namma Metro expansion, STRR, suburban rail and airport connectivity, are driving residential demand and unlocking new growth corridors. With a strong brand presence, diversified portfolio and deep market expertise, SPL remains well positioned to capitalise on these long-term structural opportunities.

Chennai

MANUFACTURING AND TECHNOLOGY POWERING RESIDENTIAL GROWTH

Chennai continues to be one of Indias most resilient residential markets, supported by its diversified economy spanning automobiles, electronics, engineering, healthcare, technology and GCCs. Ongoing investments in industrial development, metro expansion and transport infrastructure are creating new employment hubs and strengthening demand across emerging residential micro-markets. SPLs established presence and focused mid-market strategy position the Company to benefit from the citys sustained growth.

Kolkata

A STABLE MARKET WITH LONG-TERM VALUE POTENTIAL

Kolkata remains an important market in SPLs portfolio, characterised by stable end-user demand, attractive affordability and improving infrastructure. Metro expansion, road connectivity and urban redevelopment support residential activity, while increasing preference for organised developers strengthens the outlook for quality projects. The Company remains optimistic about the markets long-term potential, supported by opportunities to unlock value from its land bank as development activities gather momentum.

SPL has built a strong presence in Kolkata over the past decade, selling ~3.6 msf and serving ~4,500 homebuyers, while delivering ~2,200 homes in the last three years. Its flagship integrated township, Shriram Grand City, comprising apartments, villas and plotted developments, has transformed the micro-market. Improving market dynamics and new development opportunities are creating a stronger pathway for value creation.

Pune

EMERGING AS A KEY GROWTH MARKET

Pune continues to rank among Indias fastest-growing residential markets, driven by its expanding technology ecosystem, engineering, automotive manufacturing, education and GCCs. A young workforce, strong employment generation and ongoing investments in connectivity and infrastructure support healthy demand. Building on its successful entry, SPL seeks to deepen its presence in Pune and selectively expand across Western India through a disciplined, asset-light growth strategy.

SPL forayed into this high-growth market during FY26, with its maiden project, Shriram Spectrum in southern Pune and has sold ~300 units, accounting for 33% of average annual absorption of the micro-market during FY26. The entry validated the portability of SPLs mid-market and mid-premium proposition beyond the southern and eastern markets. The strong response to the launch demonstrated acceptance of the Shriram brand in a new geography and created a platform for expansion across Western India. SPL has secured another development opportunity and is in the process of finalising few more opportunities during FY27.

SPL strategic review

FY26: A YEAR OF STRATEGIC PROGRESS

During the year, SPL translated its strategic priorities into tangible outcomes, strengthening its operating platform, expanding its growth avenues and reinforcing its execution capabilities. The key strategic milestones achieved during the year have enhanced the Companys long-term growth potential and positioned it favourably for the next phase of its journey.

Successful entry into Pune reinforces growth strategy

The Companys maiden launch in Pune marked a significant strategic milestone, demonstrating its ability to successfully penetrate a new micro-market after several years. Achieving nearly one-third share of the micro market during its launch year itself reflected strong customer acceptance, differentiated product positioning and growing brand recognition, providing a solid foundation for further expansion across Pune and Western India.

Kolkata advancing towards value creation

FY26 also marked a turning point for the Companys Kolkata business with an improved outlook for its land bank. SPL is now better placed to pursue accelerated development, selective monetisation and product-led value unlocking from its land parcel at Uttarpara, Kolkata. With approvals progressing rapidly and recent launches of new products like the villas and plotted development witnessing an encouraging response, Kolkata is well positioned to emerge as a key growth and value creation market. Kolkata is seeing a positive shift in market dynamics, with demand strengthening and prices expected to trend upwards.

Launch strategy demonstrates strong market acceptance

The Companys well-calibrated product offerings and customer-centric value proposition continued to receive an encouraging market response, with launch performances exceeding internal expectations. This reinforces confidence in the Companys differentiated product strategy and provides strong visibility for its robust launch pipeline over the coming years.

Positioned for the next phase of growth

The strategic progress achieved during FY26 has strengthened the Companys platform for sustainable growth. Supported by an expanding development pipeline, improving market presence, disciplined capital allocation and robust execution capabilities, SPL enters the next phase of #SPLNxT with greater confidence and a clear focus on delivering long-term stakeholder value.

Pipeline visibility supporting future growth

As on March 31, 2026, SPL had a development pipeline of 41 projects with aggregate development potential of 35.2 msf, including 16.6 msf of ongoing projects. During FY26, the Company added seven projects aggregating ~3.5 msf with estimated gross development value (GDV) potential of RS. 3,500 crore. In addition, projects with more than 7 msf of development potential were at advanced stages of evaluation/closure, supporting visibility for future launches and revenue conversion.

Operational performance review

FY26 was a landmark year for operational performance, with several key operating metrics reaching record highs. The successful handover of 3,465 units supported the Companys highest-ever revenue recognition and record profits, reflecting disciplined execution and effective conversion of operational momentum into financial performance.

During the year, SPL remained focused on strengthening every aspect of its operating platform, from business development and project launches to construction execution, customer engagement and operational excellence.

Supported by favourable market conditions and a strong execution, SPL further enhanced development pipeline, improved project execution capabilities and reinforced its position in its core markets. The Companys integrated operating model, experienced leadership team and disciplined project management systems enabled it to navigate a dynamic operating environment while maintaining focus on long-term value creation.

MOMENTUM TRANSLATED INTO PERFORMANCE

FY26 was a year of resilient execution. While launch timing, approval-related disruption and OC/e-Khata processes affected the pace of activity during parts of the year, the Company maintained sales momentum, accelerated construction and delivered a strong year-end recovery. Record handovers, improved collections and higher revenue recognition reinforced the strength of SPLs execution-led business model.

FY26 OPERATIONAL HIGHLIGHTS

Steady sales

SPL clocked a sales volume of 4.2 msf and sales value of RS. 2,354 crore. This was driven by strong sustenance sales from ongoing projects and also supported by robust offtake in the Companys recent launches. Buoyant demand in its core markets led to healthy momentum despite the odds of approval-led delay impacting launches during the year.

Record-high collections

During the year, SPL recorded its highest-ever gross collection of H1,661 crore. Due to healthy milestone achievements and successful handovers, the Companys collections have shown a healthy improvement compared to the previous financial year.

Timely execution

Staying true to its reputation of delivering quality projects on-time or ahead of timeline, SPL made significant progress in project execution. Eight projects involving total saleable area of 4.0 msf, both residential and plotted development, reached completion milestones during the year. Adhering to committed timelines under RERA, the Company ensured that construction progress remained seamless, meeting customer expectations and delivering projects on time.

Record-high handovers

Despite the prolonged administrative process that impacted timelines for receipt of completion certificates (CC/OC) and e-Khata in Bengaluru, the handover team weathered the storm effectively. SPL handed over 3,465 units during the year, creating a new record. Third consecutive year of 3,000+ handovers reflects the ramp-up in execution capabilities. The handover process significantly improved upon receiving occupancy or completion certificates for crucial projects. SPL added a feather to its cap by overcoming external CC/OC/e-khata challenges and delivered ~1,200 units to customers within a short window of 45 days during the last quarter. SPLs committed efforts and seamless coordination allowed it to achieve this milestone.

Q4 execution momentum accelerates

The fourth quarter marked a decisive recovery in execution and revenue recognition. SPL recorded sales value of Rs. 663 crore, sales volume of 1.3 msf, collections of Rs. 511 crore and 1,348 handovers during the quarter. This strong finish helped the Company close FY26 with record deliveries, highest-ever revenues and its highest-ever annual profit since listing.

Financial performance

DELIVERING RECORD FINANCIAL PERFORMANCE THROUGH EXECUTION EXCELLENCE

Revenue

FY26 was a landmark year for the Company, driven by exceptional execution and strong cross-functional teamwork with the oneness that enabled accelerated customer handovers despite external operational challenges relating to receipt of completion/occupancy certificates and e-Khatas during the year. A strong recovery in execution momentum, particularly in the fourth quarter, resulted in record handovers of 3,465 units, over 1,200 of which was done in record time of 45 days during the last quarter. This notable achievement translated into highest-ever total revenue of Rs. 1,357 crore and record high net profit of H101 crore, representing a y-o-y growth of 39% and 30% respectively in FY26.

The Company reported total revenues of Rs. 1,357 crore comprising operating revenues of RS. 1,327 crore, that included Revenue from Operations of Rs. 1,267 crore and other operating income of Rs. 60 crore. Revenue from operations was up 54% y-o-y and was primarily driven by revenue recognition from recently completed projects in Bengaluru and Kolkata. Other operating income comprised fair value gains on development rights and financial instruments, along with interest income on security deposits. During the year, the Company reported other income of RS. 30 crore, mainly comprising of interest from related-party loans, bank deposits, gains from mutual funds, etc.

Operating expenses

Operating expenses, comprising cost of revenue, employee benefit expenses, impairment losses and other expenses, stood at Rs. 1,180 crore, increasing in line with higher revenue recognition and project deliveries. Employee expenses stood at Rs. 105 crore, marking a 14% y-o-y increase, primarily attributable to standard annual salary revisions and ESOP related expenses. As of March 31, 2026, the Company had 663 employees on its rolls.

Other expenses reflected strategic investments in marketing, new project launches, brokerage on revenue-recognised projects and select legacy project provisions. These strategic investments in marketing expenses were consciously undertaken to strengthen brand visibility, expand market presence and support future growth.

Operating Profits & EBITDA

The Company continued to maintain a healthy gross margin of 29% in FY26, supported by disciplined project selection, efficient procurement and sustained value engineering initiatives.

EBITDA stood at Rs. 177 crore in FY26. While EBITDA margin moderated compared with the previous year, the movement primarily reflected higher launch-linked marketing investments, certain provisions related to select legacy projects, brokerage costs charged off on revenue recognised projects and timing-related revenue recognition impacts.

Finance Costs

Finance costs for the year stood at Rs. 86 crore, lower by 18% y-o-y, primarily driven by a reduction in interest and financing expenses and a lower non-cash charge relating to the unwinding of discount on land cost payable in Kolkata.

Profit after tax (PAT)

The Companys strong execution-led recovery during the second half of the year culminated in its highest-ever PAT since listing, at Rs. 101 crore. Record project handovers, improved revenue recognition and prudent financial management enabled the Company to convert operational momentum into sustained profitability, reinforcing the strength and resilience of its business model.

Cash flow performance

STRONG CASH FLOWS SUPPORTING SUSTAINABLE GROWTH

Cash flow remains a key measure of financial strength for a real estate developer. During FY26, the Company remained focused on accelerating customer collections, improving project cash flows and maintaining disciplined working capital management.

Operating cash flow stood at RS. 271 crore, driven by robust customer collections supported by strong construction activity and associated milestone-linked customer collections, record project handovers and effective receivables management. This translated into free cash flow before new business investments of RS. 224 crore, reflecting the Companys ability to consistently generate cash flow from its core operations.

Supported by healthy internal cash flows and an opening cash and cash equivalents of RS. 320 crore, the Company invested RS. 372 crore in new project opportunities to strengthen its future development pipeline.

This reinvestment reflects SPLs disciplined capital recycling approach: cash flow generated from project execution and customer collections is being deployed into construction progress and new business development opportunities that can support future launches, milestone collections and revenue recognition.

Accordingly, the Company ended the year with cash and cash equivalents of H172 crore and unutilised credit facilities of RS. 348 crore, providing adequate liquidity to support project execution, business development and future growth.

BALANCE SHEET

Maintaining financial resilience

The Company continues to maintain a prudent approach to balance sheet management. During FY26, management remained focused on preserving liquidity, optimising the debt profile and maintaining financial flexibility to support future growth.

Rs. 438 cr

Net debt

0.30:1

Net debt-to-equity

Crisil A- positive outlook

Credit rating

The Companys cost of debt stood at 11.2% as on March 31, 2026, and remained competitive, supported by disciplined treasury management, strong lender relationships and a largely construction-linked borrowing profile. The Company does not have any significant debt associated with the landbank, and the majority of existing debt is attributable to ongoing projects, backed by their respective cash flows. This provides financial flexibility to support ongoing execution and new business development while maintaining prudent leverage.

The Companys diversified funding relationships with banks, housing finance companies, financial institutions and capital market participants provide access to multiple funding avenues while reducing refinancing risk.

RETURN RATIOS

Measuring value creation

Beyond conventional profitability metrics, management closely monitors return ratios that reflect the efficiency with which capital is deployed.

8 %

Return on capital employed (RoCE)

7 %

Return on equity (RoE)

I5.91

Earnings per share

These indicators provide a comprehensive assessment of financial performance and managements ability to generate sustainable returns for shareholders.

The Company remains committed to progressively improving these metrics through disciplined growth, operational excellence and efficient capital allocation.

FY26 PERFORMANCE HIGHLIGHTS SNAPSHOT

Particulars	March 2026	March 2025	Change %
Total income (Rs. crore)	1,357	973
EBITDA (Rs. crore)	177	179
Profit before tax (Rs. crore)	78	88
Net profit (Rs. crore)	101	77
Earnings per share (Rs.)	5.91	4.53
Book value per share (Rs.)	86	80
Financial performance ratios
Operating margin (%)	29%	30%	-5%
EBITDA margin (%) 1	13%	18%	-29%
Net profit margin (%)	7%	8%	-6%
Interest coverage ratio	1.9	1.6	20%
Balance sheet ratios
Return on capital employed	8%	8%	-4%
Net debt-equity ratio 2	0.30	0.24	25%
Debtors turnover ratio 3	15.2	9.6	59%
Return on net worth 4	7%	6%	21%
Current ratio	1.6	1.5	11%

Refer to Note 50 to the Standalone Financial Statements for the key ratios pertaining to the Standalone Financial Statements

Notes:

1. Due to higher operating expenses on launches and certain legacy project provisions

2. Increase in net debt and reduction in cash and cash equivalents

3. Attributable to increase in the revenue from operations

4. Primarily driven by higher profitability and stronger earnings generated on the Companys equity base

Strategic priorities and outlook

EXECUTING TODAY. BUILDING FOR TOMORROW

FY26 marked the transition from strategy to execution under #SPLNxT, as the Company translated its strategic vision into tangible business outcomes. Guided by disciplined business development, execution excellence, customer-centricity, financial prudence and responsible governance, SPL continued to strengthen the foundations for scalable, capital-efficient and sustainable growth.

Against the backdrop of favourable industry fundamentals, rapid urbanisation and increasing preference for organised developers, the Company is well positioned to capitalise on the next phase of growth through the following strategic priorities.

STRATEGIC PRIORITIES AT A GLANCE

Strategic priority	FY27 strategic focus
Disciplined business development	Expand a high-quality development pipeline through selective acquisitions, JDAs, JVs and development management (DM) opportunities while deepening presence across core markets and selectively expanding into Western India.
Execution excellence	Accelerate project delivery through stronger planning, procurement optimisation, technology- enabled monitoring and disciplined cost management without compromising quality or safety.
Customer-centric growth	Deliver a differentiated homebuying experience through greater transparency, digital engagement, responsive customer service and stronger post-possession support to enhance customer satisfaction and brand advocacy.
Digital and process transformation	Leverage digital technologies, automation, artificial intelligence and data analytics to improve productivity, strengthen decision-making and enhance operational agility across the value chain.
Financial strength and capital efficiency	Maintain prudent leverage, improve operating cash flows, optimise working capital and allocate capital selectively to maximise long-term shareholder returns.
Responsible and sustainable growth	Integrate sustainability into project planning through resource-efficient construction, green building practices, environmental stewardship and responsible governance.
Future-ready organisation	Strengthen organisational capabilities through leadership development, talent management, performance-driven culture and continuous learning to support long-term business growth.

OUTLOOK

SPL enters FY27 with a strengthened platform for sustainable growth, supported by:

• A differentiated and capital-efficient asset-light business model

• A strengthened brand with clear positioning under #SPLNxT

• A diversified portfolio across high-growth residential markets

• A healthy development pipeline backed by disciplined business development

• Opportunities to deepen its presence in Pune and selectively expand across Western India

• The potential to unlock significant long-term value from its Kolkata land bank

• Strong execution capabilities, prudent financial management and robust governance practices

Building on these strategic foundations, the Company remains firmly focused on delivering the ambitions set out under #SPLNxT. Under the mission set out within the framework of #SPLNxT, by FY28, SPL aims to double its pre-sales, triple revenue recognition and quadruple Profit Before Tax over the FY25 baseline through disciplined execution, capital-efficient growth and superior customer value creation. The Company has made significant progress in its mission path, in terms of building a strong pipeline to sustain growth momentum, execution excellence aimed at timely delivery of quality products that eventually lead to profitable growth and expanding market presence over the next few years. While remaining mindful of macroeconomic and regulatory uncertainties, the Company believes its focused strategy, execution excellence and financial discipline position it well to capitalise on Indias long-term residential real estate opportunity and deliver sustainable value for all stakeholders.

SCOT analysis

POSITIONED FOR SUSTAINABLE GROWTH

SPL has built a differentiated business model centred on disciplined capital allocation, an asset-light development strategy and customer-centric execution. While favourable industry fundamentals present significant opportunities, the Company remains focused on proactively managing business challenges and evolving market risks to deliver sustainable long-term value.

STRENGTHS

Building a strong foundation

Asset-light development model

Capital-efficient growth through joint development agreements (JDAs), joint ventures (JVs) and development management (DM) projects enable scalable expansion with lower capital intensity and improved returns.

Disciplined capital allocation

Rigorous project evaluation and prudent investment decisions support healthy cash flows, financial flexibility and sustainable profitability.

Leadership in high-growth markets

Established presence across Bengaluru, Chennai, Kolkata and Pune provides access to markets with strong housing demand, infrastructure development and favourable demographics.

Focused product strategy

Well-positioned in the resilient mid-market and mid-premium housing segments, where affordability meets aspirational living.

Execution excellence

Strong project management, disciplined procurement, technology-enabled monitoring and experienced leadership support timely delivery and operational efficiency.

Trusted brand and customer centricity

A 25+ year legacy, reinforced through the #SPLNxT brand transformation and the 4S philosophy (Sensible, Sensitive, Stylish and Spirited), strengthens customer trust and brand equity.

Strong governance framework

Robust governance practices, prudent risk management and financial discipline reinforce stakeholder confidence and support long-term value creation.

Executing growth with agility

Managing multi-city operations

Scaling operations while maintaining consistent execution quality across diverse markets require strong governance and operational discipline.

Construction cost volatility

Fluctuations in material prices, labour availability and supply chains require continuous optimisation of procurement and project planning.

Regulatory and approval timelines

Evolving regulatory requirements and approval processes necessitate proactive planning and continuous stakeholder engagement.

Talent and capability building

Attracting, retaining and developing skilled talent remains critical as the Company expands its operations and digital capabilities.

Technology adoption

Accelerating digital transformation across project management, sales and customer engagement remains an ongoing strategic priority.

Creating the next phase of growth

Structural growth in housing

Rapid urbanisation, rising incomes, favourable demographics and increasing home ownership continue to drive long-term residential demand.

Industry consolidation

Increasing customer preference for organised, financially strong and professionally managed developers continues to accelerate market share gains.

Infrastructure-led development

Metro rail, highways, airports and industrial corridors are unlocking new residential micro-markets across the Companys operating regions.

Deepening presence in Pune and Western India

Building on its successful entry into Pune, SPL is well positioned to expand its presence across Western India through a disciplined, asset-light growth strategy.

Unlocking value in Kolkata

With new project approvals acceleration gaining momentum, coupled with positive momentum in the state, Kolkata is expected to facilitate new project launches and unlock the significant value of the Companys Kolkata land bank.

Digital transformation

Leveraging AI, analytics, automation and digital platforms offer opportunities to improve productivity, customer experience and decision-making.

Sustainable development

Growing demand for environmentally responsible developments creates opportunities to strengthen differentiation through sustainable design and construction practices.

Navigating an evolving business landscape

Macroeconomic uncertainty

Changes in economic growth, inflation, geopolitical tensions and consumer sentiment may influence housing demand.

Interest rate movements

Higher borrowing costs can impact home affordability and purchasing decisions.

Competitive intensity

Increasing competition for quality land parcels and customers may exert pressure on margins and market share.

Regulatory changes

Changes in taxation, land regulations, environmental norms or development policies could affect project timelines and costs.

Climate and ESG risks

Increasing focus on climate resilience and sustainability requires continuous adaptation of new development practices.

Cybersecurity and data privacy

Growing digitalisation necessitates stronger cybersecurity frameworks and information security controls.

STRATEGIC OUTLOOK

SPLs long-term strategy is anchored in disciplined execution, prudent capital allocation and customer-centric growth. By strengthening its presence in high-growth markets, expanding its footprint in Pune and Western India, unlocking value from its Kolkata land bank and leveraging digital transformation, the Company is well positioned to capitalise on the structural growth opportunities in Indias residential real estate sector.

Supported by robust governance, an asset-light business model and the #SPLNxT strategic roadmap, SPL remains committed to delivering sustainable value for customers, shareholders and all stakeholders.

Enterprise risk management

MANAGING RISKS. ENABLING SUSTAINABLE GROWTH.

Risk management philosophy

Risk management is embedded into every stage of SPLs business—from project sourcing and investment evaluation to approvals, construction, customer handovers, capital allocation. The Companys Enterprise Risk Management (ERM) framework enables proactive identification, assessment and mitigation of strategic, operational, financial, regulatory and emerging risks, supporting disciplined decision-making, business resilience and sustainable value creation. Rather than viewing risk as a compliance exercise, SPL integrates risk considerations into its day-to-day operations and long-term strategic planning.

Governance and oversight

The Board of Directors and its Committees provide oversight of the Companys risk management framework. Senior management periodically reviews enterprise risks, evaluates mitigation measures and monitors emerging developments to ensure that risk management remains aligned with the Companys strategic priorities and evolving business environment.

KEY ENTERPRISE RISKS

Risk	Mitigation framework
Business development and land acquisition	Rigorous due diligence, comprehensive micro market study, investment committee approvals, disciplined underwriting and preference for asset-light JDA/JV structures.
Project approvals and regulatory delays	Early engagement with authorities, dedicated approval teams, compliance reviews and project planning with appropriate contingencies.
Construction execution and delivery	Technology-enabled monitoring, milestone tracking, contractor and vendor evaluation, procurement planning and periodic project reviews and continuous quality checks.
Sales and customer collections	Diversified project portfolio, calibrated launches, digital sales platforms, customer engagement and disciplined receivables management.
Liquidity and capital allocation	Rigorous monitoring of project receivables, prudent leverage, diversified funding sources and selective deployment of capital into high-return projects.
Cost inflation and supply chain	Strategic sourcing, vendor partnerships, value engineering and continuous cost optimisation.
Human capital	Leadership development, succession planning, capability building and performance-linked culture, training and development.
Technology and cybersecurity	ERP integration, cybersecurity controls, access management, disaster recovery and data protection practices.
ESG and sustainability	Green building practices, environmental compliance, efficient resource utilisation and integration of ESG considerations into project planning.

PREPARING FOR EMERGING RISKS

Beyond conventional business risks, the Company continues to monitor emerging developments that could influence its long-term operating environment, including advances in artificial intelligence, increasing digitalisation, evolving ESG regulations, climate resilience, data privacy requirements and changing customer expectations. These trends are periodically evaluated to enhance organisational agility and support informed strategic decision-making.

For FY27, the Company will continue to closely monitor construction cost inflation, interest-rate movements, IT and white-collar employment trends, cybersecurity preparedness and timely conversion of the business development pipeline. These factors are particularly relevant given the Companys focus on Bengaluru, Pune, Chennai and Kolkata and its strategy of scaling through a mix of own, JDA, JV and development management projects.

BUILDING A RISK-AWARE CULTURE

At SPL, effective risk management extends beyond policies and processes. The Company promotes a culture where employees across functions are encouraged to proactively identify, assess and escalate risks while upholding the highest standards of integrity, accountability and professional conduct. Regular training, cross-functional collaboration and structured reporting mechanisms reinforce risk awareness across the organisation.

LOOKING AHEAD

As the Company advances its #SPLNxT growth strategy, it will continue strengthening its Enterprise Risk Management framework through enhanced governance, technology-enabled monitoring and data-driven decision-making. By embedding risk considerations into strategic planning and day-to-day operations, SPL aims to build a resilient organisation capable of navigating uncertainties while creating sustainable long-term value for all stakeholders.

Internal control systems

GOVERNANCE FRAMEWORK

The Company has established a robust internal control framework commensurate with the size, nature and complexity of its operations. The framework is designed to safeguard assets, ensure reliable financial reporting, facilitate compliance with applicable laws and regulations, enhance operational efficiency and support effective risk management.

INTEGRATED CONTROL ENVIRONMENT

Internal controls are embedded across key business processes through well-defined policies, standard operating procedures, authority matrices and segregation of duties. The Companys internal financial controls provide reasonable assurance over the integrity of accounting records, authorisation of transactions and preparation of financial statements.

INDEPENDENT OVERSIGHT

The risk-based internal audit programme, approved by the Audit Committee, periodically evaluates the effectiveness of internal controls, governance processes and compliance mechanisms. Audit observations are reviewed by the management, while the Audit Committee monitors the implementation of corrective actions and the overall effectiveness of the control environment.

TECHNOLOGY, COMPLIANCE AND ETHICS

The Company continues to strengthen its governance framework through technology-enabled controls, enterprise systems and digital workflows that enhance operational efficiency and transparency. A strong compliance culture, supported by well-defined policies, a Code of Conduct and a Whistle Blower Policy, reinforces ethical business practices and accountability across the organisation.

MANAGEMENTS ASSESSMENT

Based on the assessments carried out during the year, the management believes that the Companys internal control systems, including internal financial controls, are adequate and operating effectively. These systems provide reasonable assurance regarding the orderly conduct of business, safeguarding of assets, prevention and detection of fraud and errors, compliance with applicable laws and the reliability of financial reporting.

The following capitals represent the financial resources, development pipeline, people capabilities, relationships, digital platforms, brand equity and sustainability practices through which SPL converts strategy into long-term value.

The capitals that power SPLs growth

FINANCIAL CAPITAL

Enabling profitable growth through financial discipline

Financial strength enables SPL to pursue growth while maintaining resilience across market cycles. The Companys disciplined approach to capital allocation, prudent leverage, strong operating cash flows and capital-light development model allows it to scale efficiently. Supported by diversified funding relationships and disciplined treasury management, SPL continues to strengthen returns, preserve liquidity and create long-term shareholder value.

HUMAN CAPITAL

Building a high-performance organisation

SPLs people are central to delivering consistent execution and customer value. The Company continues to invest in leadership, capability development and a collaborative, performance-driven culture that promotes innovation, accountability and continuous learning. A safe, inclusive and engaging workplace enables team members to support the Companys next phase of growth.

DEVELOPMENT CAPITAL

Building tomorrows growth pipeline

SPLs development portfolio is the foundation of future growth. By expanding through JDAs, JVs and DM models, the Company scales with lower upfront capital while enhancing returns. A rigorous investment framework ensures every opportunity meets its standards for location, demand, regulatory readiness and profitability, creating a diversified pipeline across high-growth residential markets.

ECOSYSTEM CAPITAL

Connecting relationships, knowledge and responsibility to create lasting value

SPLs ecosystem capital brings together the relationships, knowledge, technology, brand trust and social and environmental stewardship that enable sustainable growth.