Supreme Holdings & Hospitality Ltd Management Discussions

B) The revenue from real estate activity is recognised in accordance with the Guidance Note on Accounting for Real Estate Transactions (for entities to whom Ind AS is applicable)” issued by the Institute of Chartered Accountants of India (ICAI), and accordingly the income from operations during the financial year 2025-26 has been reported at Rs.3,80,70,878/- as compared to Rs. 66,22,92,751/- in the previous year. The total Income for the year 2025-26 was at Rs. 7,66,85,600/- as compared to Rs. 69,39,77,642/- in the previous year.

During the financial year under review, the cost of sales and other operational expenses were at Rs. 3,29,14,848/- as against Rs. 48,57,88,261/- in the previous year. The employees cost during the financial year 2025-26 was at Rs. 83,98,816/- as compared to Rs. 2,07,46,450/- in the previous year. The Finance cost for the year 2025-26 was at Rs. 2,73,505/- as against Rs. 97,030/- in the previous year. The Depreciation and amortization expenses and other expenses were at Rs. 37,01,968/- as compared to Rs. 36,99,980/- in the previous year.

The Profit for the year 2025-26 before taxation was at Rs. 99,16,441/- as against Rs. 13,70,29,859/- in the previous year. After providing for taxation, including deferred tax, the Company has reported Profit of Rs. 73,29,932/- during the financial year 2025-26 as against Rs. 10,39,88,750/- in the previous year.

C) Segment-wise Performance:

As Company had only one reportable segment during the financial year, disclosure under Ind-AS 108 on segment reporting is not applicable to the Company.

d) Outlook for the Company:

The companys ambitions to expand its presence in the real estate industry are significant. It is actively seeking opportunities in the Panvel region, with the goal of developing large-scale townships in the future. Simultaneously, the company is exploring strategic joint ventures in the dynamic Pune market to support its growth trajectory.

Meanwhile, the Mumbai Metropolitan Region (mmr) is undergoing a major infrastructure transformation. Projects such as the new international airport, an upgraded road network including the coastal road, and expanding metro connectivity are set to significantly enhance the regions accessibility. These developments are poised to reinforce MMRs status as a key economic hub, attracting both investment and talent. As a result, the housing market in MMR is expected to see substantial growth, opening new avenues for development.

In line with these trends, the company is also actively exploring options that promote sustainable growth and ensure a promising, steady future. By focusing on long-term value creation and resilience, it aims to maintain stability in an otherwise vibrant and fast-evolving real estate market.

e) Opportunities, Threats, Risk and Concerns:

The demand for homes has significantly increased as a result of a number of factors, including economic growth, rising income levels, and the belief that housing prices are stabilizing. Potential buyers who had been hesitant to enter the market are now doing so as first-time homeowners or as experienced homeowners seeking for greater areas, which is a clear indication of this trend. The trend toward remote and hybrid work patterns is also having an impact on peoples desire for larger living spaces.

Here are some of the key risks faced by the Company:

Unforeseen Risk:

Unforeseen risks such as global economic uncertainties, including geopolitical tensions and supply chain disruptions, can impact real estate markets. Economic slowdowns or recessions can lead to decreased demand and lower property values. Despite such hurdles, our robust business model remains firm towards enhancing business sustainability.

Contractual Risk:

Real estate contracts frequently include contingencies like deliverables, inspection etc. Under these circumstances, many contracts entitle the contractors to a time extension. Right contractual provisions should be incorporated in case of unforeseeable risks to prevent business losses.

Manpower Risk:

Its critical to recruit and retain qualified workers in light of the growing competition. Experienced employees may be poached as a result of new competitors in the industry taking an aggressive stance.

Human Resource Management Risk:

Employee-Centric Approach: The companys employees are its greatest asset and help it achieve its greater business goals. Their tenacity and commitment to the business are much valued and acknowledged. The company wants to improve talent development and create a more positive work environment. Our goal is to support our staff members professional development.

Consumer-Centric Approach:

Leading the charge in advancing consumer interests is the Real Estate (Regulation and Development) Act (rera). It emphasizes on handling customer complaints and making sure that concerns are promptly resolved, fostering a climate that is open and accountable to homebuyers.

f) Internal Control Systems and their Adequacy:

The Company has adequate internal control system running throughout the organisation. Internal processes of the Company commensurate with our nature of business. The Company has appointed Internal Auditor who audits the adequacy and effectiveness of the internal control system as laid down by the management and suggests improvements as required.

The Audit Committee periodically reviews the audit plans, internal audit reports and adequacy of internal controls.

g) Discussion on financial performance with respect to operational performance:

During the year under review, the Company recorded revenue of Rs. 3,80,70,878/-, compared to Rs. 66,22,92,751/-in previous year. The decline in revenue reflects the natural variation in the project lifecycle, with fewer projects reaching the revenue recognition stage during the year.

Profit before tax stood at Rs. 99,16,441/-, compared to Rs. 13,70,29,859/-in the previous year. After accounting for taxation, including deferred tax, the Company reported a net profit of Rs. 73,29,932/- for FY 2025-26, as against Rs. 10,39,88,750/-in FY Previous Year.

The reduction in profitability during the year should be viewed in the context of the Companys business lifecycle rather than as a reflection of its operational strength. The previous financial year included the successful completion and handover of major projects, resulting in significant revenue and profit recognition. During the year under review, the Company was in a transition phase, with completed projects having substantially concluded, Belmac Infinity progressing through its development and sales cycle, and the upcoming Koproli, Panvel project under planning and pre-development activities. As is typical in the real estate industry, revenue and profit recognition are closely linked to project execution milestones and handovers. Accordingly, the lower profitability during the year reflects the natural timing difference between completed projects and the commencement of revenue recognition from the Companys next phase of developments, while its underlying project pipeline and long-term growth prospects remain strong.

h) Material developments in Human Resources/lndustrial Relations front including number of employees:

Industrial relations with employees remained cordial during the financial year. Your Company recognizes that its committed and talented workforce is the key factor in driving sustainable performance and growth. As one of the most critical assets of the Company, its people are responsible for its competitive advantage. Your Company is committed to recruiting and retaining the most relevant and best industry talent. The total number of permanent employees working as on March 31, 2026 was 19.

i) Comparative analysis of Financial ratios and significant Changes therein as on 31st March, 2026:

Details of any change in return on net worth as compared to the immediately previous financial year along with a detailed explanation there of:

Due to decrease in net profit, the Return on Net worth of the Company has decreased to 0.51% for financial year 2025-26 as compared to 7.29% for financial year 2024-25.