Sunteck Realty Ltd Management Discussions

For the financial year ended 31 March 2026

This Management Discussion and Analysis should be read together with the audited consolidated financial statements for the year ended 31 March 2026 and the notes thereto. Unless stated otherwise, all financial information is presented on a consolidated basis and all amounts are in ? crore. Operational measures referred to in this report, including pre-sales, collections and Gross Development Value (GDV), are non-lnd AS operational indicators compiled from the Companys internal reporting systems. Such measures are not recognised under Ind AS, and may not be comparable with similarly titled measures presented by other companies.

SECTION 1 - ECONOMIC OVERVIEW

1.1 Global economy

The global economy entered FY26 in a phase of uneven but resilient growth. In its July 2026 World Economic Outlook Update, the International Monetary Fund projected global growth of 3.0% for calendar 2026 and 3.4% for 2027, against an average of 3.5% recorded across 2024 and 2025. The outlook is shaped by two opposing forces: the energy and supply disruption arising from conflict in the Middle East, and an accelerating investment cycle in technology driven by the adoption of artificial intelligence. The net effect varies sharply by country, depending on exposure to the conflict and position in the global technology value chain.

Disinflation has stalled. Global headline inflation is now projected at 4.7% for 2026, revised upward through successive assessments during the year, before easing to 3.9% in 2027. Global trade growth is expected to moderate to 3.5% in 2026 from 5.0% in the prior year. Financial conditions tightened abruptly around the escalation of hostilities but subsequently eased and remain accommodative relative to historical norms. Risks are more evenly balanced than at the start of the year, though renewed conflict and a repricing of financial assets remain the principal sources of downside.

For a Company operating exclusively in Indian real estate, with no foreign-currency borrowings and revenues denominated in rupees, the direct transmission of these developments is limited. The relevant channels are indirect: commodity and energy prices feed into construction costs, and global risk appetite influences portfolio flows into Indian equities and the cost of domestic capital. Both were monitored closely during the year and are addressed in Section 5.

1.2 Indian economy

India retained its position as the fastest-growing major economy. Provisional estimates of the National Statistical Office place real GDP growth for FY26 at 7.7%, against 7.1% in FY25 under the revised 2022-23 base series, with nominal GDP expanding 8.9%. Growth was domestically generated: gross fixed capital formation rose 8.2%, private final consumption expenditure grew approximately 7%, and the services block spanning trade, transport, hotels and communication expanded in double digits. Manufacturing contributed a further 7%.

The monetary environment was supportive through the year. Following a cumulative easing cycle that concluded with a 25 basis point reduction in December 2025, the Reserve Bank of India held the policy repo rate at 5.25% through the February and June 2026 reviews, maintaining a neutral stance. Consumer price inflation for FY26 remained well below the mid-point of the target band. Looking into FY27, the Reserve Bank has moderated its real GDP growth projection to 6.6% and raised its CPI inflation projection to 5.1%, reflecting the pass-through of higher global energy prices and currency pressure.

India real GDP growth (%)

Implication for the Company:

A low and stable policy rate through FY26 supported home loan affordability and mortgage growth, which is the single most important macroeconomic variable for residential demand. The prospective rise in inflation and the pause in the easing cycle argue for continued conservatism in leverage and for pricing discipline rather than volume-led expansion — the approach the Company has followed and intends to maintain.

SECTION 2 - INDUSTRY OVERVIEW

2.1 Indian real estate

The residential market moved from recovery into consolidation during the year. Across the eight principal cities, sales in the first half of calendar 2026 stood at 1,71,471 units, an increase of approximately 1% year on year, while new launches rose 4% to 1,87,350 units. After four years of steep post-pandemic recovery, near-flat volume growth indicates stabilisation at a high base rather than deterioration in demand. Supply has exceeded sales in most markets since 2022, with the launches-to-sales gap at approximately 15,879 units in the half-year — a margin that remains manageable but warrants monitoring.

The more consequential development is compositional. Homes priced above Rs.1 crore accounted for 54% of total sales in the first half of 2026, up from 49% a year earlier. Premium housing now represents more than half of the Indian residential market by value and volume in the top cities. This is a structural shift driven by rising household incomes, changing buyer aspirations and sustained price appreciation, and it is directly aligned with the segments in which the Company operates.

Prices continued to rise across markets, though at a more measured pace than in 2023 and 2024. Mumbai remained the most expensive residential market in the country. Sector fundamentals continue to be reinforced by the regulatory architecture established over the past decade: RERA has improved transparency and delivery accountability, and the consolidation of market share towards developers with balance sheet strength, brand equity and a record of completion remains firmly in progress.

2.2 Mumbai Metropolitan Region

The Mumbai Metropolitan Region remains the deepest and most valuable residential market in India, and the sole geography of the Companys operations. Property registrations in the Brihanmumbai Municipal Corporation jurisdiction reached 80,221 in the first half of calendar 2026, an increase of 6% year on year and the strongest first-half performance since 2013. Stamp duty collections rose 4% to Rs.6,968 crore, also the highest since 2013.

The divergence between the two figures is instructive. Registrations grewfaster than stamp duty revenue, indicating a moderation in average transaction value and a broadening of demand across buyer segments rather than concentration in the highest-value transactions. For a developer present across the price spectrum, this is a favourable configuration: depth in the premium and aspirational segments supports volume, while the uber-luxury segment continues to supply margin.

New supply in the region has been substantial. Mumbai recorded 41,341 new residential launches in the first half of calendar 2026, the highest since 2023. Cluster redevelopment has emerged as a significant mechanism for unlocking supply in a land- constrained city. Navi Mumbai accounted for the largest share of launches at approximately 32%, followed by Thane and the Eastern Suburbs at approximately 18% each and the Western Suburbs at approximately 11%.

In the commercial market, gross leasing reached a record 10.7 million square feet in the first half of calendar 2026, a year-on- year increase of approximately 30%, led by the BFSI sector at 37% of activity, followed by IT-BPM at 17% and Engineering and Manufacturing at 12%. Global Capability Centres remain a principal source of demand. Net absorption of 3.1 million square feet was lower year on year, reflecting constrained availability of quality space rather than weak occupier appetite — a condition that supports rentals and, by extension, the Companys commercial annuity assets.

The structural case for the region is unchanged:

Employment concentration in an established core, an infrastructure programme that is progressively redefining which locations are considered central, and in-migration that continues to add households faster than housing stock can be created. The Companys portfolio spans ten micro-markets across this region and is positioned along the corridors where that transition is currently occurring.

SECTION 3 - BUSINESS OVERVIEW

Sunteck Realty Limited is a premium residential and commercial developer operating in the Mumbai Metropolitan Region, with one international development in Downtown Dubai. The Company has completed 20 projects across multiple market cycles and has acquired in excess of 50 million square feet of development potential since inception. The operating model rests on three principles: focus on a single region understood in depth, diversification of risk within that region - three development models and customer segments, and growth funded in a capital-efficient manner.

3.1 Development model and investment discipline

The Company controls land through three routes, selected on the economics of each transaction rather than on a fixed allocation. Outright acquisition is used where returns justify the commitment of balance sheet capital. Joint ventures and joint development agreements provide a capital-light route to scale in partnership with landowners. Redevelopment is pursued selectively in the island city, where society-led opportunities offer entry into locations that are otherwise unavailable.

Whichever route is used, the same filters apply to every transaction: research-led selection of micro-markets, entry into growth corridors ahead of the infrastructure cycle, a threshold equity multiple below which the Company does not proceed, and the preservation of a near-zero net debt position. Construction is predominantly managed in-house, which provides direct control over quality, cost and programme, and reduces dependence on third-party contractors.

3.2 Portfolio and Gross Development Value

Total Gross Development Value stood at Rs.41,030 crore as at 31 March 2026, net of sales already effected, against Rs.39,370 crore a year earlier and Rs.19,345 crore three years earlier. Approximately 36 million square feet of development potential has been added since 2018. The portfolio is distributed across ten micro-markets, three customer segments and three development models.

Total Gross Development Value (Rs cr)

The composition of the pipeline is as important as its scale. Of the FY26 balance GDV, Rs.7,316 crore relates to projects that have received the relevant approvals and are launched; Rs.13,625 crore to projects under the approval process; and Rs.20,089 crore to projects in planning and design. By model, Rs.11,535 crore is owned outright, Rs.28,245 crore is held through joint ventures and joint development agreements, and Rs.1,250 crore is under redevelopment.

FY26 GDV composition

This structure gives the Company several years of launch visibility before any new acquisition is required, which is what permits selectivity in the land market. It also means that the majority of the pipeline is held through structures that do not require full upfront land payment, limiting the capital at risk at any point in the development cycle.

3.3 Micro-market presence

The following table sets out the Companys presence by micro-market as at 31 March 2026, with GDV stated net of sales already effected.

MICRO-MARKET	PRINCIPAL PROJECTS	GDV(RSCR)
Bandra Kurla Complex	Signature Island • Signia Isles & Pearl	505
Nepean Sea	Nepean Sea projects 1 and 2	3,470
Andheri	Andheri WEH • Andheri-Kurla, Sahar	3,600
Goregaon (W)	Sunteck City, ODC — Avenues 1 to 5	5,060
Bandra (W)	Bandra West project	1,000
Mira Road	Sunteck Sky Park • Sunteck Park, Mira Road-2	2,125
Vasai (W)	Sunteck Beach Residences	3,360
Naigaon	Sunteck World	4,110
Kalyan	Sunteck Crescent Park	8,800
Downtown Dubai	Burj Khalifa community	9,000
Total		41,030

Balance GDV as at 31 March 2026, net of sales already effected.

3.4 Customer segments

The Company addresses three customer segments. Uber luxury comprises Signature Island, Signia Isles and Signia Pearl in Bandra Kurla Complex, together with the Nepean Sea Road and Downtown Dubai developments. Premium luxury comprises Sunteck City, Sunteck Sky Park, Sunteck Park and Sunteck Beach Residences. Aspirational luxury comprises Sunteck World at Naigaon and Sunteck Crescent Park at Kalyan.

SEGMENT	Q4 FY26 PRE-SALES	FY26 PRE-SALES	SHAREOFFY26
Aspirational luxury	94	302	9.6%
Premium luxury	361	1,317	41.7%
Uber luxury & others	609	1,538	48.7%
Total	1,064	3,157	100.00%

Uber luxury and others led the year, contributing Rs.1,538 crore or 48.7% of pre-sales, followed by premium luxury at Rs.1,317 crore or 41.7% and aspirational luxury at Rs.302 crore or 9.6%. The weighting towards uber luxury was concentrated in the fourth quarter, in which the segment contributed Rs.609 crore of the Rs.1,064 crore of quarterly pre-sales.

Management does not regard the mix in any single period as indicative of a permanent shift. The segment composition of presales is a function of which projects reach launch and inventory release in a given quarter, and it rotates accordingly. The material point is that all three segments and none is dependent on the others.

This spread is deliberate. Exposure to a slowdown in anyone price band is limited by the presence of the other two, and margin is supported by the uber-luxury contribution while volume and market breadth are supported by the premium and aspirational segments. The structure also creates an internal upgrade path: as household incomes rise, customers migrate to higher segments within the Companys own portfolio rather than to a competing developer.

3.5 Commercial and annuity portfolio

The commercial portfolio comprises two completed assets, Sunteck BKC 51 and Sunteck Icon at Bandra Kurla Complex

Junction, both pre-leasedfor a tenure of 29 years. Occupancy is full and cash flows are contracted and predictable. Annual rental income stood at approximately Rs.76 crore, and both completed assets have generated an average return on invested capital of approximately 30%, at rental yields of 7% to 7.5% on the commercial portfolio.

With the addition of 5th Avenue at Sunteck Oshiwara District Centre, the annuity book is expected to scale to approximately Rs.450 crore per annum by FY29, with capital value creation of up to approximately Rs.5,000 crore at full build-out. The strategic purpose of this portfolio is to establish a contracted, inflation-linked income stream that is independent of the timing of residential launches and that improves the stability of consolidated cash flow through the development cycle.

3.6 Business development during the year

FY26 was the Companys most active year for business development. Rs.813 crore was deployed on land, joint development and related costs, against Rs.184 crore in the prior year. Three projects with an aggregate estimated GDV of Rs.4,950 crore were added during the year.

PROJECT	MICRO-MARKET	MODEL	AREA(MSF)	EST.GDV Rs.CR)
Sunteck Park (Mira Road 2)	Mira Road	JDA	0.6	1,200
Andheri Kurla — Sahar	Andheri	Owned	0.6	2,500
Andheri, WEH	Andheri	Redevelopment	0.3	1,250
Total			1.5	4,950

Projects added during FY26. Estimated GDV as at 31 March 2026.

SECTION k - OPERATIONAL PERFORMANCE

Pre-sales for FY26 were Rs.3,157 crore, an increase of 25% over the prior year and the highest in the Companys history. This represents the fifth consecutive year of growth in pre-sales and a compound annual growth rate of approximately 25% over FY22 to FY26. Collections were Rs.1,433 crore, an increase of 14%.

The gap between the growth ratesof pre-sales and collections reflects the ordinary mechanicsof the construction-linked payment plans under which the Company sells. Pre-sales contracted in FY25 and FY26 will convert into collections as construction milestones are achieved over the next several quarters. Management expects collections growth to accelerate towards the rate of pre-sales growth as the launched portfolio progresses through its construction programme; this is the principal driver of cash flow in FY27 and FY28.

OPERATING METRIC CR UNLESS STATED)	FY23	FY24	FY25	FY26
Pre-sales	1,602	1,915	2,531	3,157
Collections	1,250	1,236	1,255	1,433
Business development spend (incl. LO/ JDA)	166	91	184	813
Net operating cash flow surplus	428	484	374	552
Total GDV	19,345	26,465	39,370	41,030
Net debt/equity (x)	0.10	(0.00)	(0.04)	0.06

Four-year operating scorecard. Pre-sales, collections and GDV are non-lnd AS operational indicators and are unaudited.

SECTION 5 - FINANCIAL PERFORMANCE AND POSITION

5.1 Results of operations

Revenue from operations for FY26 was Rs.1,124 crore, an increase of 31.7% over Rs.853 crore in FY25. EBITDA was Rs.305 crore against Rs.186 crore, an increase of 64.0%, and profit after tax was Rs.202 crore against Rs.150 crore, an increase of 34.4%.

Revenue recognition in real estate follows the completion of performance obligations rather than the contracting of sales, and consequently the reported revenue of any single year reflects projects completed in that year rather than the pre-sales momentum of that year. The increase in FY26 reflects the flow of completed inventory through the profit and loss account.

The more significant development is in margin. EBITDA margin expanded by 5.3 percentage points to 27.1%, and PAT margin improved to 18.0%. This expansion is a function of operating leverage: the Companys fixed overhead base has been held broadly stable while revenue has grown by approximately a third, and the mix of revenue recognised has shifted towards higher-margin premium and uber-luxury inventory.

Margin profile (%)

5.2 Consolidated statement of profit and loss

PARTICULARS CR)	Q4 FY26	Q4 FY25	FY26	FY25
Operating revenue	339	206	1,124	853
EBITDA	97	69	305	186
— margin (%)	29%	33%	27%	22%
Profit before tax	83	67	268	183
Tax expense	20	17	66	33
Net income (PAT)	63	50	202	150
— margin (%)	19%	24%	18%	18%
Basic earnings per share Rs.	4.34	3.44	13.94	10.26

Consolidated. Tax expense is derived as profit before tax less profit after tax. Earnings per share for FY26 to be completed from the audited financial statements.

Profit before tax grew 46.4% to Rs.268 crore, ahead of the 34.4% growth in profit after tax. The difference is explained by the effective tax rate, which normalised to approximately 24.6% in FY26 from approximately 18.0% in FY25. At a constant effective rate, profit after tax growth would have been broadly in line with the growth in profit before tax.

On a quarterly basis, Q4 FY26 operating revenue of Rs.339 crore was 64.6% higher than the corresponding quarter, EBITDA of Rs.97 crore was 40.6% higher and profit after tax of Rs.63 crore was 26.0% higher. Quarterly margins were lower year on year — EBITDA margin of 29% against 33% and PAT margin of 19% against 24% — reflecting the project mix reaching completion in the quarter rather than any change in underlying profitability. Full-year margins, which are the more meaningful measure in a business with lumpy revenue recognition, improved on both counts.

5.3 Abridged consolidated balance sheet

LIABILITIES (RSCR)	FY26	FY25	ASSETS (RS CR)	FY26	FY25
Net worth	4,472	3,260	Inventories	7,894	6,206
Borrowings	774	387	Other assets	1,444	1,453
Other liabilities	4,667	4,680	Loans & advances	367	347
			Trade receivables	113	117
			Cash & bank balances	95	203
Total	9,913	8,327	Total	9,913	8,327

Consolidated position as at 31 March. FY25 figures converted to Rs crore from the audited financial statements presented in Rs lakh.

The balance sheet expanded by approximately Rs.1,586 crore during the year. On the asset side, substantially all of the increase is in inventories, which rose from Rs.6,206 crore to Rs.7,894 crore, reflecting the record business development spend and construction progress across the launched portfolio. Trade receivables reduced to Rs.113 crore, and the debtors turnover ratio improved materially, evidencing the quality of collections.

On the funding side, net worth increased from Rs.3,260 crore to Rs.4,472 crore. Retained profits account for Rs.202 crore of this increase; the balance reflects equity infusion during the year, including subscription monies received against convertible warrants. Gross borrowings rose from Rs.387 crore to Rs.774 crore, which is discussed in the following sub-section.

5.4 Cash flow and capital allocation

The Company manages the business on operating cash flow rather than on recognised revenue. Net operating cash flow surplus for FY26 was Rs.552 crore, an increase of 48% over Rs.374 crore in FY25, and the fifth consecutive year in which this measure has been positive. Cash flow return on capital employed was approximately 20%.

Gross cash collections of Rs.1,433 crore absorbed project expenses of Rs.589 crore and a JDA revenue share of Rs.46 crore, leaving a gross operating cash flow surplus of Rs.798 crore against Rs.637 crore in FY25. After other expenses of Rs.246 crore, the net cash flow surplus was Rs.552 crore.

The material point on capital allocation is that FY26 combined a record operatingcash surplus with a record business development outlay of Rs.813 crore. The Company was able to fund a 4.4-fold increase in land and joint development spend in a capital-efficient manner.

5.5 Capital structure and credit profile

Net debt at 31 March 2026 was Rs.266 crore against net worth of Rs.4,472 crore, giving a net debt to equity ratio of 0.06x.

India Ratings and Research, part of the Fitch Group, has reaffirmed the Companys long-term rating at AA, which places Sunteck among the most highly rated developers in Indian real estate. The Company maintains long-standing relationships with a group of marquee lenders and has faced no constraint on the availability of construction finance during the year.

Gross debt increased from Rs.336 crore to Rs.747 crore during the year. Borrowings of Rs.774 crore as reported in the balance sheet comprise this gross debt together with Rs.27 crore of quasi-equity instruments, being 1% secured non-convertible debentures issued to a retired LLP partner, redeemable only out of the free cash flow of specified projects over a tenure of 20 years. Against gross debt of Rs.747 crore, the Company held cash and cash equivalents of Rs.95 crore and loans to JDA partners of Rs.386 crore, giving net debt of Rs.266 crore.

The gross debt drawn is project-linked and was raised to fund construction and business development in a year of exceptional acquisition activity. On an adjusted basis, including quasi-equity, net debt was Rs.293 crore and adjusted net debt to equity was 0.07x. Management does not regard the increase in gross debt as a change in the Companys leverage policy, which remains anchored in capital-efficient growth.

5.6 Key financial ratios

The following ratios are disclosed in accordance with the requirements of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

RATIO	UNIT	FY26	FY25	EXPLANATION OF CHANGE
Debtors turnover	X	9.77	4.16	Sharp improvement driven by higher collections and a reduction in outstanding receivables
Inventory turnover	X	0.08	0.07	Continuous improvement driven by higher business volumes and revenue.
Interest coverage	X	4.98	5.49	Marginal moderation due to higher finance costs from increased borrowings.
Current ratio	X	1.81	1.50	Improvement reflects stronger and enhanced liquidity.
Debt equity ratio	X	0.21	0.12	Increase reflects project-linked gross borrowingfor a record year of business development; net debt to equity remains conservative at 0.06x and adjusted net debt to equity at 0.07x
Operating profit margin	%	27.1%	21.8%	Operating leverage on a broadly stable overhead base and a higher-margin revenue mix
Net profit margin	%	18.0%	17.6%	Margin expansion at the EBITDA level partly absorbed by higher depreciation and finance cost
Returnon net worth	%	4.5%	4.6%	Broadly stable; the denominator has expanded on equity infusion during the year, ahead of the earnings contribution from that capital

SECTION 6 - OPPORTUNITIES, RISKS AND OUTLOOK

6.1 Opportunities

• Structural premiumisation. Premiumisation of demand has moved decisively in the Companys favour, with homes above Rs.lcrore now representing the majority of sales in the leading cities.

• Infrastructure-led revaluation. Metro extensions, coastal and trans-harbour connectivity and the wider road programme continue to redefine which locations are considered central, generating value in corridors the Company entered ahead of the cycle.

• Redevelopment supply. Cluster and society-led redevelopment has become a principal source of new supply in a land- constrained city, and offers entry into locations otherwise unavailable.

• Commercial demand. Record office leasing and sustained demand from Global Capability Centres support both residential demand from a growing professional population and the Companys commercial annuity assets.

• Sector consolidation. Consolidation continues to favour developers with balance sheet strength, brand equity and a delivery record.

6.2 Risks and mitigation

The Company manages risk stage by stage across the life cycle of a project, from the assessment of market and demand through

to the capital-efficient recycling of proceeds into the next cycle. The principal risks at each stage, and the manner in which they

are managed, are set out below.

In addition to the structural mitigants shown above, the Company monitors input cost inflation closely. Construction cost escalation, driven partly by global energy and commodity prices, remains the most immediate pressure on development margins; this is managed through in-house construction, procurement planning and, where market conditions permit, price realisation. Liquidity and interest rate risk are limited by the low absolute level of net debt and by five consecutive years of positive operating cash surplus. Concentration risk arising from a single-region focus is managed through diversification across ten micro-markets, three price segments and three development models within that region.

6.3 Outlook

The Company entered FY27 with a portfolio of Rs.41,030 crore of balance GDV, of which Rs.20,941 crore is either launched or under the approval process, and with a net debt to equity ratio of 0.06x. Managements operating priorities for FY27 are to convert the launched and approval-stage pipeline into pre-sales on schedule; to accelerate collections in line with construction progress; to scale the annuity portfolio towards its FY29 objective; and to add land and joint development opportunities only where they satisfy the Companys return thresholds.

Management expects revenue recognition to increase materially over the next two financial years as a larger proportion of the launched portfolio reaches completion, and expects margins to be sustained at or above current levels given the embedded margin in the contracted pre-sales book. Growth will continue to be funded principally from operating cash flow, and the Company does not intend to depart from its policy of maintaining minimal net leverage.

SECTION 7 - ENVIRONMENT, SOCIAL AND GOVERNANCE

In the 2025 GRESB assessment cycle, the Company recorded a participation and score of 99 out of 100 with a 5-star rating, and a development score of 69 out of 70 against a benchmark average of 68 and a GRESB average of 61. In the S&P Global Corporate Sustainability Assessment for the Dow Jones Sustainability Index, the Company recorded an ESG score of 78 out of 100 and a CSA score of 78 in its third year of participation, against an industry average of approximately 30. Pillar scores were 76 for environment, 86 for social and 73 for governance, against industry averages of 32,32 and 34 respectively.

ASSESSMENT /CERTIFICATION	STANDING
GRESB 2025 — participation & score	99 /100, with a 5-star rating
GRESB 2025 — development score	69 / 70 (benchmark average 68; GRESB average 61)
S&P Global CSA/DJSI 2025	ESG score 78 /100; CSA score 78 (industry average 30)
EDGE (IFC) — residential	Sunteck City 4th Avenue, ODC Goregaon (W) • Sunteck Maxxworld and Sunteck Oneworld, Naigaon • Sunteck Beach Residences, Vasai (W)
EDGE (IFC) — commercial	Sunteck BKC 51 • Sunteck Icon • Sunteck Crest
LEED Gold (USGBC)	Sunteck Centre, Vile Parle (East) — head office
ISO surveillance audit	Completed with no material non-conformities; certification maintained

GRESB — Global Real Estate Sustainability Benchmark. EDGE — Excellence in Design for Greater Efficiencies, IFC (World Bank Group).

All projects on the Companys platform are to be constructed to green standards. Management regards this as an engineering and asset-value decision as much as an environmental one: buildings constructed to higher environmental specification carry lower operating costs, retain value over a longer period, and meet the expectations that occupiers and regulators are expected to hold over the life of the asset.

SECTION 8 - INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company maintains an internal control framework designed to safeguard assets, ensure the reliability of financial reporting, promote operational efficiency and secure compliance with applicable law. The framework is reviewed periodically by management and by the Audit Committee of the Board.

The Company operates on SAP S/4HANA, which provides integrated control, governance and operational oversight across business functions. Customer relationship management systems incorporate data encryption, access management and realtime monitoring. Sensitive customer data, including telephone numbers and electronic mail addresses, is masked, and Data Loss Prevention protocols are enforced to mitigate the risk of unauthorised access or leakage.

Information security measures include antivirus deployment, firewalls and upgraded hardware, supported by defined IT policies and a structured monthly review process. During the year, network access was migrated from password-based wireless authentication to Active Directory credential authentication, making access identity-bound and eliminating the vulnerabilities associated with shared passwords. Access beyond general business internet use — including to specific applications, internal systems or elevated privileges — is now granted exclusively through a formal ticketing system, ensuring traceability, controlled provisioning and adherence to the principle of least privilege.

The Board is of the opinion that the internal control systems are adequate and operating effectively, commensurate with the size, scale and complexity of the Companys operations.

SECTION 9 - HUMAN RESOURCES

The Companys people remain central to its performance. Diversity, inclusion, equal opportunity, non-discrimination and freedom of expression form the foundation of the Companys work culture. Investment continues in upskilling and reskilling across functional, technical and behavioural competencies.

Safety is embedded in operations rather than treated as a compliance obligation, supported by protocols, regular training and a safety culture applied consistently across sites and offices. Communication is maintained through digital platforms and HR Connect programmes, and employee feedback is captured through regular internal surveys and used as an input to management decisions.

The principal focus during the year was strategic talent management in sales, marketing and customer relationship functions, which are central to the Companys customer-facing growth, alongside the core technical functions of quality, safety, engineering procurement and construction, design and architecture, which are critical to execution. The Company continues to strengthen its talent pipeline through the recruitment of younger professionals while identifying and promoting high-potential individuals from within.

SECTION 10 - CAUTIONARY STATEMENT

This Management Discussion and Analysis contains forward-looking statements that reflect the Companys current views with respect to future events and financial performance. These statements are based on assumptions and expectations that management believes to be reasonable at the date of this report. Actual results may differ materially from those anticipated as a result of factors including, but not limited to, changes in economic conditions, movements in interest rates and input costs, regulatory and approval timelines, and demand conditions in the markets in which the Company operates. The Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Sources

External data referenced in this report is drawn from the following publications, each cited at the point of use:

• Global economy — International Monetary Fund, World Economic Outlook Update, July 2026.

• Indian economy — National Statistical Office, Provisional Estimates of National Income FY 2025-26 (2022-23 base series); Reserve Bank of India, Monetary Policy Statements, December 2025 to June 2026.

• Indian real estate — Knight Frank India, India Real Estate: Residential and Office, HI 2026.

• Mumbai Metropolitan Region — Knight Frank India, Mumbai property registrations HI 2026; Cushman & Wakefield, Mumbai MarketBeat, Q2 2026.

Company operational data, including pre-sales, col lections and Gross Development Value, is derived from the Companys management information systems. Financial data is derived from the audited consolidated financial statements for the year ended 31 March 2026.