SSPDL Ltd Management Discussions

1. Economic Overview

The start of 2026 saw a major crisis developing in the Middle East, leading to disruptions in energy supplies and the global supply chain. The global economy in FY26 operated under the shadow of renewed geopolitical crisis, with the Middle East conflict and the neareffective blockade of the Strait of Hormuz, fundamentally disrupting energy markets, freight economics, and growth trajectories across regions. As per the International Monetary Fund (IMF), the global economy remains resilient but increasingly exposed to geopolitical, trade and commodity-price shocks. In early 2026, the IMF projected steady global growth of 3.3% in 2026 and 3.2% in 2027, supported by technology-led investment, accommodative financial conditions and private-sector adaptability. However, the Middle East conflict and related higher energy price uncertainty led the IMF to moderate the 2026 outlook to 3.1%, while retaining a broader view of medium-term resilience.

Further, the evolving conflict in the Middle East presents a significant challenge to the resilience of the global economy. Any prolonged escalation could have an outsized impact on global growth, particularly for energy-importing nations. Slowdown in growth and increase in inflation are expected to be particularly pronounced in emerging markets and developing economies.

India continues to stand out as one of the worlds fastest-growing major economies, well-positioned to sustain this momentum. Indias economy delivered an outstanding performance in FY26, reaffirming its position as the fastest-growing major economy in the world. India remains relatively well positioned, with growth projected at 6.5% in both 2026 and 2027, supported by resilient domestic momentum. Backed by resilient domestic consumption, strong public capital expenditure, services strength, and steady manufacturing activity, India stands out as one of the worlds fastest-growing major economies.

In FY26, the Reserve Bank of India (RBI) eased its monetary stance, reducing the repo rate to 5.5% in October 2025 and further to 5.25% in December 2025, with a view to support growth amid moderating inflation. Inflation, which remained benign through FY26, faces some upside risk from imported energy costs but is projected by the RBI to remain within manageable limits.

While domestic fundamentals remain strong, the outlook for FY27 will depend on global developments, particularly geopolitical tensions, commodity price movements, and external demand conditions.

2. Indian Real Estate Industry Overview

Indian real estate sector acts as a strategic pillar of national development with significant contribution to growth, employment, and inclusive urbanisation. The sector contributes nearly 8% to Indias GDP and fosters sustainability and equitable growth across tier I, II, and III cities alike. India continues to be the fastest-growing major economy, supported by strong domestic demand, sustained public investment and stable macroeconomic fundamentals. Driven by this economic momentum, the development landscape is rapidly shifting from fragmented ownership toward highly organised, institutionalised capital structures. This transformation is marked by increased institutional participation through innovative mechanisms such as REITs, private equity, and alternative investment funds.

Concurrently, the residential market in Indias leading cities is entering a phase of maturity. This evolution is characterised by measured growth, a consolidation of market share toward established developers, and a sharper industry-wide focus on construction quality, affordability, and timely project execution. Also, the market is experiencing a sharp divergence in residential demand. Premium and luxury housing now dominate, capturing the majority of total sales across major metros.

Despite global uncertainties and domestic affordability challenges, the real estate market exhibits remarkable resilience, continuously propelled by long-term structural drivers like rapid urbanisation, robust government support, infrastructure expansion, and accelerating digitalisation. The demand for specialized sectors like student housing, senior living, and flexible co-working spaces also increasing.

Overall, FY 2025-26 can be described as a phase of "steady expansion with cautious optimism" where the Indian real estate sector continues to grow, driven by strong fundamentals, but with increasing emphasis on financial discipline, location-specific demand, and resilience to global economic headwinds.

Opportunities

We believe that long term structural potential for the sector to grow is immense. The Indian real estate industry has strong structural growth drivers, which will keep the longer-term demand trends robust even as the industry undergoes sectoral cyclicality. These are as under:

• Rapid urbanization is boosting the urban population

• Nuclearization of families

• Improving education levels

• Rising household incomes

As the bank rate starts moving down modestly in line with inflation, demand will further get a boost as consumers will want to benefit from a low home loan rate scenario.

The offices segment is exhibiting a gradual recovery, resulting in an improvement in occupancy levels mainly due to the back-to-office policies, although certain occupiers continue to operate on a flexible and hybrid approach.

Threats/Risks/Concerns:

Real estate being a cyclical industry and projects having a long gestation period, gets impacted more by the changes in macroeconomic variables like global and countrys economy, changes in the market dynamics, availability of capital, interest rate, GDP Growth, employment, purchasing power, inflation, availability of skilled labour, etc., and the same directly impacts the project sales and profitability of the Company.

Execution delays may result in cost overruns, and can cost dearly in the form of higher than expected input costs and higher than anticipated interest burden. Further, such delays also negatively impact the Companys reputation and returns.

Also, intrinsic challenges that hinder growth of the sector and performance of your Company, factors such as high borrowing costs, lack of funding, liquidity issues, and slow (and uneven) development of urban infrastructure.

As the growth of your Companys portfolio is linked to overall economic growth, the primary risk to the business is adverse changes to the economy.

4. SEGMENT WISE PERFORMANCE:

The Company is engaged in the construction and development of Commercial and residential properties in metropolitan and Tier II cities.

The projects undertaken by the Company on its own and through other partners are under various stages of execution, and the details of the status of these projects are mentioned in the Directors Report.

5. OUTLOOK

Indias broader macroeconomic growth narrative remains firmly intact, underpinned by a supportive policy environment characterised by calibrated interest rate cuts and targeted tax incentives, and is expected to provide further stimulus to demand, particularly within the affordable and mid-income segments, together creating a conducive ecosystem for sustained growth in the housing sector, enabling consistent demand absorption across cycles. However, despite strong fundamentals, FY 2026 has also seen a phase of cautious recalibration, as developers and investors adjust strategies amid global economic uncertainties, inflationary pressures, and fluctuating demand conditions.

The real estate sector presents several strong opportunities in the residential segment, where rising incomes, rapid migration to urban centres and increasing preference for home ownership continue to fuel demand, especially in mid-income and premium housing

Your company is currently executing housing projects in Hyderabad and Chennai. Considering past experiences, your Company is primarily focusing on the development of property, mid-size houses, etc., and has reduced the construction contract works. However, on finding better opportunities, it will take up and execute the construction contracts.

Based on the opportunities available in the real estate sector, the management, optimistic about the growth in the sector, will undertake projects that suit market requirements.

6. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

Your Company has a reasonably sound system of controls in the operational areas. Internal controls are in line with the size of the operations and organisational requirements. These are adequate to protect the Companys resources. The Audit Committee reviews the adequacy of internal financial control and risk management systems from time to time.

The Company focuses on quality control in its operations and projects. Adhering to quality norms and standards will help minimise risks and improve the efficiency of operations.

Total Revenue: During the year under review is Rs. 2862.05 lakhs, against Rs. 639.16 lakhs in 2024-25.

Total Expenses: During the year under review is Rs. 1560.60 lakhs, as against Rs. 833.22 lakhs for 2024-25.

Profit/(Loss) Before Tax: During the year under review is Rs. 1301.45 lakhs, as against Rs. (194.07) lakhs in 2024-25.

Profit/(Loss) After Tax: During the year under review is Rs. 749.44 lakhs, as against Rs. (194.06) lakhs in 2024-25.

8. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT:

The Company continues to maintain cordial relations with its employees, vendors and other agencies. The Company strives to provide a congenial atmosphere to the employees to enable them to offer their best in terms of performance. As of 31 st March, 2026, your company has 17 employees on its payroll.

9. DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS AND CHANGE IN RETURN ON NET WORTH:

As per the amendment made under Schedule V to the Listing Regulations read with Regulation 34(3) of the Listing Regulations, details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year ("FY")) in Key Financial Ratios, with explanations therefor are given below along with details of any change in Return on Net worth (based on the standalone financial statements of the Company):

Details of change in Return on Net Worth with detailed explanation: The Net Worth for the financial year 2025-26 is Rs.96291.45 thousands, for the financial year 2024-25 is (1 971 6.21) thousands, and the change in Net Wirth is Rs.116007.66 thousands, due to the increase in the net profit during the year under review.

CAUTIONARY STATEMENT:

Statements in the Management Discussions and Analysis, the Directors Report, describing the Companys objectives, projections, estimates, and expectations are "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors/developments that could affect the companys operations include a downward trend in the real estate sector, including political and economic conditions of the country, in which the Company operates, and the changes in the Government regulations, tax laws, corporate and other laws, interest and other costs, and other incidental factors.