Suratwwala Business Group Ltd Management Discussions

Management Discussion and Analysis

Global Economy Overview

The year 2026 unfolded against a global economy that entered the period on a firmer footing than many had anticipated, only to be tested in its initial months by the outbreak of geopolitical conflict in the Middle East. Having absorbed successive waves of trade-policy uncertainty and elevated borrowing costs over the preceding two years, world output proved notably resilient through much of 2025. The conflict, however, disrupted energy markets, firmed up inflation expectations and prompted a wholesale re-evaluation of the interest-rate path that had been widely expected at the start of the year. According to the International Monetary Fund (IMF), global GDP growth averaged 3.5% in 2024-25, then moderated to 3.0% in calendar 2026.¹

Global economic growth

(Source: h ttps://www. imf.org/en/publications/weo/issues/2026/07/08/world-economic-outlook-update-july-2026) [MECA: Middle East & Central Asia EDA: Emerging and Developing Asia LATC: Latin America & The Caribbean]

On the downside, the war in the Middle East and higher energy prices weigh most heavily on commodity importers and vulnerable emerging economies. On the upside, the technology cycle, driven by investment in and adoption of artificial intelligence (AI), is lifting economies that are well integrated into the global technology value chain.

Growth among the advanced economies remains subdued in 2026, with the United States projected at 2.3%, the euro area at 0.9%, the United Kingdom at 1.0%, Canada at 1.1%, and Japan at 0.6%. Emerging market and developing economies (EMDEs) continue to outperform, expanding by a projected 3.9%, led by China at 4.6% and by a cluster of technology-linked Asian economies. India retains its position as the fastest-growing major economy, underpinned by resilient private consumption and services activity.

The most consequential shift during the year was the interruption of global disinflation. According to the IMF, the global headline inflation is expected to rise to 4.7% in 2026, up

1 https://www.imf.org/en/publications/weo/issues/2026/07/08/world- economic-outlook-update-july-2026

(Source: https://www.imf.org/en/publications/weo/issues/2026/07/08/world-economic-outlook-update-july-2026)

2026 marked a turning point for real estate, transitioning from stagnation to recovery after two years of declining values. Global property markets gained momentum with improved capital markets and limited development, showing divergence across sectors and regions. Transaction volumes reached about US$216 billion in early 2026, up 18% year-on-year, led by Asia- Pacifics 31%. In the US, commercial real estate investment is expected to grow 16% to US$562 billion, nearing pre-pandemic levels, with slight cap-rate compression. Recovery is uneven: industrial, residential, and data centres lead due to demand, while office and life-science sectors face challenges. India is the top destination for increased investment, with 86% of European and Asia-Pacific investors intending to invest more, followed by Canada (80%) and France (78%). The main factor influencing the market is policy rate movement; rising yields after conflict slowed the recovery pace, though the cycle remains strong and debt is available.

Outlook

Risks to the global outlook remain tilted to the downside. A longer or wider conflict, greater geopolitical fragmentation, disappointment over AI productivity, or trade tensions could weaken growth and shake markets, with high public debt limiting policy room. Conversely, de-escalation, faster AI gains, and disinflation could lead central banks to ease policy and boost recovery.

For real estate, policy rates and energy prices will be crucial. Despite this, limited new supply, demand for logistics, data centres, housing, and returning liquidity support a continued recovery, especially for India, which has a growth premium and strong investor interest.

Indian economy overview

India retained its position as the fastest-growing major economy in FY26. As per the Provisional Estimates released by the Ministry of Statistics and Programme Implementation (MoSPI) in June 2026, the Indian economy expanded by 7.7% in real terms in FY2025-26, an acceleration from the 7.1% growth recorded in FY2024-25. Nominal GDP rose 8.9% to approximately ?346.36 lakh crore. Growth momentum held firm throughout the year, with real GDP expanding 7.8% year-on-year in the fourth quarter (January-March 2026), underscoring the resilience of domestic activity amid persistent global trade uncertainty and geopolitical volatility.

Indias GDP growth trend

[Source: MoSPI Provisional Estimates (FY26); RBI and World Bank (FY27 forecast)]

The expansion was broad-based across sectors. The services sector, the largest contributor to GDP, grew by an estimated 9.1% during the year, with financial services, real estate, and professional services acting as the key drivers of services-sector growth. Industrial activity remained robust, with manufacturing expanding around 7.0%, while the construction sector, a bellwether for real estate, sustained healthy momentum. Sustained private consumption and elevated government capital expenditure continued to anchor demand.

(Source: https://www.mospi.gov.in/uploads/latestReleases/ latest_release_1780655857536_5ac01869-ca4a-422d-b7a7- 57b81da60932_Press_Note_on_GDP_Estimates_for_Q4_2025- 26_and_PE_FY_2025-26_F.pdf)

On the price front, the macro environment became benign. Headline CPI inflation averaged 1.7% from April-December,driven mainly by food-price disinflation, while core inflation stayed subdued, indicating limited demand pressures. This easing allowed the Reserve Bank of India to cut rates: a total of 125 basis points since February 2025, along with liquidity measures, improved monetary transmission. Lower borrowing costs reduced home-loan rates, boosting affordability and housing demand.

Fiscal management remained disciplined, with strong tax revenue and controlled spending, supporting capital expenditure and keeping the FY26 fiscal deficit forecast at 4.4% of GDP. The emphasis on infrastructure-led growth benefited the built environment, with the Union Budget 2026-27 increasing public capital expenditure to ?12.20 lakh crore from ?11.20 lakh in FY26. Structural reforms enhanced the operating environment for real estate, including the National Real Estate Policy 2025s single-window clearance system and incentives for green developments. SEBIs reforms, like reclassifying mutual fund investments in REITs as equities from January 2026, boosted transparency and investor participation.

Taken together, a fast-growing economy, moderating inflation, an accommodative interest-rate cycle, rising urbanisation and continued policy support create a constructive demand environment for real estate.

Indian MSME Sector

Indias MSME sector remains key to the economy, contributing about 31.1% to GDP, 35.4% to manufacturing, and 48.58% to exports. Formalisation increased with over 8.7 crore registrations by June 2026 and employment nearly 38.9 crore. The revised MSME classification from April 2025 allowed enterprises to scale up, supported by measures like doubled collateral-free credit limits and CGTMSE support. In real estate, MSMEs drive demand and employment, especially in Tier-II and Tier-III cities, boosting commercial, industrial, and residential sectors.

[Source: https://www.dailyexcelsior.com/indias-msme-sector-contributes-31-1pc-to-gdp-formal-registrations-cross-8- 7-cr/]

Outlook

Indias medium-term growth outlook remains one of the strongest among major economies. Projections from leading agencies estimate real GDP growth of about 6.5-6.6% for FY2026-27, with the Reserve Bank of India and the World Bank forecasting 6.6%, and the IMF around 6.5%. This is despite global growth expected to slow to approximately 3.0% in 2026. In the near term, risks mainly stem from external factors such as high global energy prices, geopolitical tensions in West Asia, and changing trade and tariff policies. On the domestic front, growth remains robust, supported by resilient private consumption, low inflation, an accommodative interest-rate cycle, ongoing government capital spending, and continued urbanization. For the real estate sector, this macro environment is favorable. Lower home-loan rates, structural demand for urban housing, rising incomes, household formation, and reforms like the National Real Estate Policy 2025s single-window clearance and SEBIs REIT reforms position the sector to maintain its growth into FY2026-27.

Indian real estate sector

Real estate is the second-largest employment generator in India after agriculture and a significant contributor to national output. The sector is estimated to reach a market size of US$1,000 billion by 2030 and US$5,700 billion by 2047, up from US$650 billion in 2025, after growing at a 14% CAGR. Growth is being propelled by rapid urbanisation, rising household incomes, and the proliferation of nuclear families, resulting in sustained demand across the residential, commercial, retail, and hospitality segments. Indias urban population is expected to rise to around 542.7 million by 2025 and 675.5 million by 2035, providing a durable structural underpinning for housing and commercial development.

Indias growing real estate market

(Source: https://assets.kpmg.com/content/dam/kpmgsites/in/pdf/2026/05/reimagining-indias-real-estate-landscape.pdf) [*Forecasted]

FY26 marked a shift from cyclical recovery towards a more structural, demand-led phase of growth. The residential market absorbed inventory steadily across the major metros, the commercial office segment delivered record leasing activity, and the listed REIT market continued to mature, even as the sector navigated elevated global uncertainty and a gradually rising level of unsold inventory.

Over the past decade, Indias real estate sector has become a key driver of urbanisation, infrastructure, and capital formation. Covering residential, commercial, retail, industrial, and logistics segments, it mirrors the countrys rapid urban growth, changing demographics, and rising consumption. With strong links to financial markets, infrastructure, and asset development, real estate remains central to Indias long-term economic growth.

Demand-led growth drivers

I. Rapid urbanisation: An estimated ~590 million people (39% of the total population) are expected to live in urban areas by 2036, driving sustained demand for affordable housing.

II. Rising public capital expenditure: A sixfold rise in government capital expenditure to a planned USD128.5 billion in FY27 is bolstering the infrastructure foundation and fostering ongoing growth.

III. Institutional investment support: An institutional investment of USD4.3 billion as of October 2025, along with increasing REIT adoption, is improving transparency and liquidity in both commercial and residential real estate.

IV. Monetary policy easing: The RBIs 25-basis-point cut in the repo rate in December 2025 to 5.25% has reduced borrowing costs, improved EMI affordability, and boosted demand for end-user housing.

V. GCC-led rental upside: The projected increase in the number of GCCs to approximately 1,700 by 2025 is fuelling demand for office space, leading to higher rental rates and accelerating the creation of new business districts in India.

Historically, value creation in Indian real estate depended on land acquisition, location, and timing in the cycle. Competitive advantage came from access to capital, regulatory navigation, and holding or exiting assets. Technology played a minor role, mainly supporting marketing or project management rather than influencing results.

As the market matures, traditional advantages are insufficient. Rising asset sizes, longer holding periods, and discerning investors shift focus from asset creation to optimization. Value now depends on execution, differentiated products, disciplined management, and technology, which boosts efficiency, visibility, customer experience, and asset performance.

Technology absorption in the Indian real estate industry

Technological innovation is transforming Indias real estate sector. Property technology (PropTech) companies offer AI-based valuation tools, virtual tours, automated lease management, and digital transaction platforms, enhancing efficiency from property search to asset management. Blockchain is gaining traction for improving transparency, security, and speed in land records, transactions, and fractional ownership. A pilot project in Maharashtra aims to create tamper-proof land records, though adoption has been slow due to regulatory and digitization challenges. The government is exploring blockchain to reduce disputes, increase transparency, and secure property data. Andhra Pradesh and Karnataka have already implemented blockchain- based land systems to streamline transactions.

Indias real estate market is projected to reach USD 1 trillion by 2030, driven by urbanization, rising incomes, and infrastructure growth. Urban population increases will boost demand for housing and urban development, creating opportunities for large-scale projects. With supportive policies, technological adoption, and global investment, Indias real estate sector is set for strong long-term growth.

Key trends shaping the Indian real estate industry

Tier II andTier III cities, the next frontiers of development

Before the pandemic, large Indian developers regularly sold commercial and retail assets to private equity or sovereign fund buyers or listed them in REITs. Afterwards, they reinvested proceeds into Tier II and III cities, a healthy shift that addressed market saturation in Mumbai and unlocked growth in Pune, Mysore, and Visakhapatnam. These cities now account for nearly half of land acquisitions and are seeing rising residential values, indicating market strength. Housing demand is projected to reach 93 million units by 2036 due to urbanization, metro and rail expansion, and better connectivity. Some firms are moving to smaller cities to cut costs and improve quality of life, even as tech companies stay in larger talent hubs. Simultaneously, growth in logistics and infrastructure is attracting domestic and international investment into warehousing and logistics parks near Tier I centres in Tier II and III cities, which need large, affordable land and will benefit from the National Logistics Policy and ongoing infrastructure expansion.

Affordable housing in Tier I cities; slum redevelopment projects

In cities like Mumbai, there are still opportunities for affordable housing developments. Navbharat Mega Developers Private Limited (NMDPL), a joint venture between the Maharashtra government and the Adani Group, has announced a major slum redevelopment project in Dharavi, Mumbai. Such projects have been long anticipated, especially as prime urban locations in major Indian cities are likely to undergo redevelopment in the coming years.

Smart cities

The governments focus on developing smart cities has benefited Pune, Bhubaneswar, and Indore by transforming underdeveloped areas into thriving real estate hubs. Dholera in Gujarat, a smart city under development, is poised to become a major industrial and residential center with advanced infrastructure and amenities. Rising property values and demand for sustainable homes make these cities attractive for investment. Infrastructure growth in smart cities also reduces investment risks and improves returns. Nonetheless, smaller cities face challenges such as complex regulations, a shortage of skilled labour, higher material costs, and market saturation in segments like residential real estate, all of which hamper growth.

Luxury farmlands and vacation homes

Several developers offer luxury "second home" or "vacation home" projects, including villas and managed farmlands across India. These projects reflect Indians increased spending power and lower barriers to entry. Often structured as limited liability partnerships, owners share the project, while developers handle maintenance and rent out unoccupied units, thereby enhancing their attractiveness to investors.

Indian residential real estate sector

Indias residential sector showed resilience in FY26, notably shifting towards premium and luxury segments. In over 75 cities, sales volumes remained nearly stable at about 7.10 lakh units, a slight decrease of around 1% compared to the previous year. However, total sales value increased by approximately 16% to ?9.32 lakh crore, driven by larger individual transaction sizes. Homes priced above ?1 crore made up around 50% of sales in the top eight cities in 2025, up from 44% the year before. New project launches grew by around 10%, reaching approximately 6.21 lakh units, with the March 2026 quarter seeing a record- high quarterly launch volume.

The surge in new launches lifted unsold inventory by about 13%, a key watch-item for the mass-market segment, even as the premium end thrived. Looking ahead, the industry expects new launches across the top seven cities to rise 6-9% and average prices to firm a further 3-5%, with premiumisation and the rise of Tier-II and Tier-III cities remaining the dominant themes.

Growth drivers

I. Indias urbanisation is around 35%, projected to reach 4050%, with urban population growing from 542.7 million in 2025 to 675.5 million by 2035. A housing shortfall, rising incomes, and a shift to nuclear families drive sustained demand.

II. Since February 2025, a rate cut cycle has lowered home- loan rates, boosting the mortgage market with about 2.6 million loans worth ?8.3 lakh crore in the first three quarters of FY26. High-net-worth individuals and NRIs are driving premiumisation, while government support sustains affordable housing demand.

III. Policy and regulation: The Pradhan Mantri Awas Yojana- Urban 2.0, launched September 2024, aims for one crore more urban homes over five years. The SWAMIH fund has financed over 60,000 stressed units, and measures like RERA, rationalised GST, infrastructure status for affordable housing, and tax deductions boost buyer confidence. Growing green-certified and smart-home developments also drive demand.

Indian commercial real estate sector

Indias commercial office market marked a historic year in FY26. Net absorption in the top six cities reached an all-time high of approximately 69-70 million sq. ft., surpassing new supply for the third straight year. Meanwhile, gross leasing for 2025 hit a record of about 83.3 million sq. ft. Demand was primarily driven by Global Capability Centres (GCCs), accounting for nearly 38% of leases, along with flexible workspace providers and the BFSI sector, which together offset a slowdown in traditional IT leasing. Continuous absorption resulted in vacancy rates rising to between 12.5% and 13% by March 2026.

Indias growing office space demand

According to industry experts, Grade A office stock is expected to expand to 925 million sq. ft. by FY27, and net absorption is expected to remain above 65 million sq. ft., with vacancy easing to 12-12.5%. The listed REIT market continued to mature, aided by SEBIs January 2026 reform, which reclassified mutual fund investments in REITs as equity, thereby broadening the investor base.

Growth drivers

Global Capability Centres leased nearly 28 million sq. ft. in 2025 and are projected to lease 60-65 million sq. ft. over 2026-27, a 15-20% increase, as global firms continue to leverage Indias cost-effective talent for technology, engineering, and analytics. Demand is expanding beyond traditional IT to include flexible workspace, BFSI, and manufacturing/engineering sectors.

New asset classes are expanding the market. Indias data-centre capacity increased from 375 MW in 2020 to nearly 1,500 MW, driven by digitalization and data localization, with over US$28 billion planned. The warehousing, logistics, life sciences, coworking, and co-living sectors are rapidly growing, fuelled by manufacturing, Make in India, PLI schemes, and e-commerce.

In 2025, private-equity real estate investments in India reached $6.7 billion, a 59% increase, mainly in offices and data centres. Supportive policies, mature REITs, 100% FDI for townships, and government infrastructure spending (?12.20 lakh crore in 202627) boost connectivity, land markets, and attract institutional investors.

Outlook for the real estate sector

The outlook for Indian real estate remains positive. In commercial properties, the industry expects net office absorption to stay above 65 million sq. ft. in FY27, driven by ongoing demand from GCC, flex, and BFSI sectors. Vacancy rates are expected to decrease further to 12-12.5% by March 2027, with Grade A office space increasing towards 925 million sq. ft. In residential markets, the industry envisions new launches in the top seven cities to grow by 6-9%, with average prices rising by 3-5%. Premiumisation is expected to continue as the main trend. Over the longer term, the sectors goal of reaching a US$1 trillion market by 2030 remains achievable, supported by urbanisation, formalisation, and growing capital markets.

Key risks need careful monitoring. In FY26, unsold residential inventory increased by approximately 13% as new launches exceeded sales. The mass-market segment faces ongoing affordability challenges, although the premium segment continues to perform well. Factors such as a possible reversal of the interest-rate cycle, rising input costs, and global macroeconomic or geopolitical shocks could slow down growth. Nonetheless, a supportive macro environment, with moderating inflation, lower borrowing costs, ongoing infrastructure investments, and a push for transparency through reforms, sets the stage for sustained healthy growth into FY2026-27. The Company is well-positioned to benefit from these positive trends while remaining alert to fluctuations in demand, supply, and costs.

Indian renewable energy industry

India is now the third-largest producer of renewable energy in the world, having surpassed Brazil in the IRENA Renewable Energy Statistics 2026. As of 31 March 2026, the countrys installed non-fossil-fuel capacity stood at 283.5 GW, comprising 274.7 GW of renewable energy, led by solar (150.3 GW) and wind (56.1 GW), and 8.8 GW of nuclear. A landmark was reached in June 2025, when India achieved 50% of its cumulative installed electricity capacity from non-fossil sources, five years ahead of its 2030 Nationally Determined Contribution target under the Paris Agreement, keeping the country firmly on course towards its goal of 500 GW of non-fossil capacity by 2030.

FY26 marked Indias strongest energy transition year, with nonfossil capacity reaching 55.29 GW, nearly double FY25s 29.5 GW. Solar added around 45 GW, nearly twice FY25 levels, bringing the total to 150 GW. Winds annual addition hit 6.05 GW, up 46%. The non-fossil share rose to 29.2%, and renewables met 51.5% of peak demand in July 2025. Coal generation fell 3.7%, indicating a major shift in the power mix.

Growth Drivers

a) Policy and targets: The 500 GW non-fossil commitment by 2030 is supported by flagship schemes like PM Surya Ghar: Muft Bijli Yojana (?75,021 crore to install rooftop solar for 1 crore households by FY27), PM-KUSUM for agricultural solar, and 50 solar parks of 500 MW or more, plus competitive bidding, transmission charge waivers, and renewable obligations.

b) Domestic manufacturing: The Production Linked Incentive (PLI) scheme for high-efficiency solar modules has awarded 48 GW of module capacity, with about 18.5 GW of module, 9.7 GW of cell and 2.2 GW of ingot-wafer capacity already established, deepening the domestic supply chain and reducing import dependence.

c) Green hydrogen: The National Green Hydrogen Mission (?19,744 crore outlay) targets 5 million tonnes of annual green-hydrogen production and about 125 GW of dedicated renewable capacity by 2030, aiming to attract over ?8 lakh crore of investment and create around 6 lakh jobs.

d) Economics and demand: Falling solar and electrolyser costs, rising electricity demand from a fast-growing economy, and growing corporate and commercial-and- industrial (C&I) procurement of clean power continue to strengthen project viability and offtake.

e) Investment: India aims to invest more than US$360 billion in renewables and related infrastructure by 2030. This includes US$190-215 billion to achieve 500 GW capacity and an additional US$150-170 billion for transmission and storage.

Outlook

Having reached the 50% non-fossil milestone well ahead of schedule and recording record additions in FY26, the 500 GW target by 2030 now seems attainable. Future growth is expected to extend beyond utility-scale solar and wind, encompassing energy storage, green hydrogen, distributed and rooftop solar, and grid modernisation·wind capacity alone is projected to reach 99.9 GW by 2029-30. Main challenges include grid integration, transmission expansion, securing round-the-clock and reliable power via storage, land acquisition, and large- scale financing. Overall, continued policy support, improved economics, and expanded domestic manufacturing position the sector for sustained growth in the medium term.

Company overview

Established in 2008, Suratwwala Business Group Limited ("SBGL" or "the Company") is a Pune-based real estate developer with operations across commercial and residential developments, redevelopment projects, leasing of immovable properties, property maintenance services and allied business support services. Over the years, the Company has expanded its business portfolio by entering the renewable energy sector through its subsidiary, Suratwwala Natural Energy Resource Private Limited ("SNER"), which undertakes solar EPC (Engineering, Procurement and Construction), solar park development, operation and maintenance (O&M)/AMC services, and power projects under the Power Purchase Agreement (PPA) model.

SBGL currently operates through two principal business verticals:

• Real Estate: Development of commercial and residential projects, redevelopment opportunities and strategic land acquisition across Pune and adjoining markets.

• Renewable Energy: Solar EPC solutions, solar park development, long-term PPA projects and allied renewable energy services through SNER.

Since its incorporation, the Companys growth has been driven by three strategic phases. The initial phase focused on creating a quality land bank through direct acquisitions and development arrangements.

Following its listing, the Company strengthened its governance framework, internal processes and institutional capabilities. The current phase is focused on project execution, asset monetisation and expansion of its renewable energy business.

The Company follows an integrated development approach encompassing project planning, development, construction, marketing, sales and post-handover maintenance services. As on the date of this Report, SBGL has a land bank of over 180+ acres, providing a pipeline for future development, subject to regulatory approvals and market conditions. In addition to development income, the Company derives recurring revenue from leasing of commercial properties, maintenance services and allied business support activities, thereby creating a diversified revenue profile.

The Companys expansion into renewable energy complements its existing real estate business by adding an additional operating vertical with opportunities in solar EPC execution, long-term PPA projects and related maintenance services. This diversification is intended to broaden the Companys revenue streams while enabling participation in Indias growing renewable energy sector.

Our Strengths

I. Deep presence in Punes resilient micro-market: SBGL focuses on Pune, a hub with a strong IT/ITeS, manufacturing, auto sectors, and high in-migration. This local focus provides detailed insight into demand, land, and buyer trends, making it hard for competitors to copy.

II. The Company has a diversified, integrated revenue model, earning from development /commercial), redevelopment, leasing, property maintenance, business services, and increasing solar EPC, long term solar PPA projects, and AMC services. It balances one-time development income with recurring streams, protecting against real estate cycle fluctuations.

III. Established brand with a delivery track record, completed landmark projects like Suratwala Sweet 16 and Suratwala Mark Plazzo Tower A and B, car mall and Gajanan heritage and Shri brahmachaitanya. These projects boosted Suratwwalas recognition in Punes commercial markets, fostering customer trust and repeat business.

IV. Project Portfolio and Development Pipeline

The Companys flagship commercial project, Suratwwala Mark Plazzo (SMP), continues to contribute to the Companys ongoing project monetisation. The Company is also progressing its residential development pipeline, which includes:

• Prabhat Road - Proposed ultra-premium residential development.

• Kasar Amboli - Proposed premium villa development.

V. Renewable energy as a growth adjacency. The Companys expansion into renewable energy through SNER represents a strategic diversification into solar EPC, PPA, solar park and allied services. This vertical leverages the Groups existing capabilities in project execution, procurement and site management while broadening its revenue base.

VI. Committed promoter group and stable leadership. A high level of promoter ownership aligns management incentives with long-term shareholder value, and continuity of leadership under the Chairman and Managing Director provides strategic consistency.

I. Asset base and order visibility. The Company enters FY27 with a project pipeline of multiple projects and an order book of ?93 crore, providing some forward revenue visibility.

Awards & Recognition

During the year under review, the Company received the following recognitions / continued to be recognised for its contribution to the Pune real estate and renewable energy sectors:

• Best Employer Brand Awards 2025 -Maharashtra state best employer brands awards 2025

Finance Review

The following review should be read together with the audited financial statements and the accompanying notes. Figures are presented on a consolidated basis unless otherwise stated.

Results of operations

Particulars (? lakh)	FY26	FY25	Change (%)
Revenue from Operations	14,299.34	3,587.81	298.55%
Other Income	62.88	144.43	-56.46%
Total Income	14,362.22	3,732.24	284.82%
Total Expenses	9,242.92	2,203.27	319.51%
EBITDA	5,292.42	1442.48	266.90%
EBITDA Margin (%)	37%	40%	·
Finance Cost	68.01	13.61	399.71%
Depreciation & amortisation	167.99	44.33	278.95%
Profit Before Tax	5,119.30	1,528.97	234.82%
Tax Expenses	1,329.16	425.36	212.48%
Profit After Tax	3,790.14	1,103.61	243.43%
PAT Margin (%)	27%	31%	·
Earning per share	2.15	0.64

Revenue. Revenue from operations was ?14,299.34 Lakhs in FY26 compared with ?3,587.81 Lakhs in FY25, a growth of 298.55%, driven by project completions and revenue- recognition milestones across the residential and commercial portfolio, together with contributions from the solar and business-auxiliary verticals.

Profitability. Profit before tax stood at ?5119.30 Lakh (FY25: ?1528.97 lakh) and profit after tax at ?3790.14 Lakh (FY25: ?1103.61 Lakh).

Net worth stood at ?11,040.99 Lakh as at 31 March 2026, as against ?7,014.17 Lakh in FY25.

Key financial ratios

Ratio	FY26	FY25	Change (%)	Reason for variance
Current Ratio	2.80	2.55	9.85%	NA
Debt-Equity Ratio	0.79	0.88	-10.70%	NA
Debt Service Coverage Ratio	0.45	0.26	75.93%	(i)
Return on Equity Ratio	0.31	0.16	99.87%	(ii)
Inventory turnover ratio	0.34	0.15	121.20%	(iii)
Trade Receivables turnover ratio	36.14	7.48	383.17%	(iv)
Trade payables turnover ratio	77.80	3.94	1,872.88%	NA
Net capital turnover ratio	0.66	0.43	51.77%	(v)
Net profit ratio	0.34	0.33	2.55%	NA
Return on Capital employed	0.24	0.12	107.67%	(vi)
Return on investment	0.31	0.15	102.70%	(vi)

Notes:-

(i) Ratio is improved as profit available for service debts is increased more as compared to corresponding increase in debts

(ii) The increase in ratio is due to increase in profits for the year as compared to previous year

(iii) The increase in ratio due to increase in sales turnover & corresponding increase in COGS & closing inventory

(iv) Ratio is impacted as increase in sales revenue & decrease in avg. Trade receivable as compared to previous year

(v) The increase in ratio due to increase in sales turnover

(vi) Due to increase in profits for the year, ratio is improved

Analysis Of Balance Sheet

Particulars	FY26	FY25	Changes in %
Total Equity	9732.05	6848.84	42.10%
Long- term borrowing	7170.4	5218.19	37.41%
Short - term borrowing	470.33	803.15	-41.44%
Total Non current assets	7092.47	4674.68	51.72%
Trade receivable	310.47	183.70	69.01%
Cash And Cash Equivalents	354.98	103.79	242.02%

Financial position SFS

Financial position. Net worth stood at ?9,732.05 lakhs as at 31 March 2026, as against ?6,848.84 lakhs in FY25.

CFS

Financial position. Net worth stood at ?11,040.98 lakhs as at 31 March 2026, as against ?7,014.17 lakhs in FY25.

Our ESG Focus

SBGL approaches environmental, social and governance ("ESG") responsibility as integral to durable value creation in the built- environment sector.

Environmental

As a real estate developer, the Company recognises the environmental impact associated with construction activities and seeks to mitigate it through resource-efficient design, responsible construction practices, water and waste management, and green-building considerations, wherever applicable. The Companys renewable energy vertical further supports its environmental objectives through solar EPC and allied services, facilitating clean-energy adoption across industrial, commercial, residential and institutional segments, with approximately 787 MWh Electricity and saved 650 tonnes of carbon during FY 2025-26. The Company also places strong emphasis on health and safety across its operations and project sites through a structured EHS framework encompassing safety induction, fire and workplace safety training, statutory labour and site compliances, appropriate insurance coverage, regular site inspections and monitoring of safe and unsafe practices. Identified risks and observations are periodically reviewed, with corrective and preventive actions tracked to closure, reinforcing the Companys commitment to responsible operations, environmental stewardship and a safe working environment.

Social

Social Responsibility

The Companys social commitment focuses on delivering safe and quality-built spaces, fostering fair, safe and inclusive workplaces, and engaging responsibly with the communities in which it operates. Its EHS framework emphasises employee and workforce health and safety through regular safety induction and training, fire and workplace safety measures, appropriate insurance coverage, statutory labour compliances and periodic monitoring of safe and unsafe practices. During the year, the Company spent ?53,00,000 approx. towards CSR initiatives, covering healthcare and health camps, vocational training for women, promotion of education, measures for the benefit of armed forces veterans, war widows and their dependants, and support for community and entrepreneurship-related initiatives,

Governance. SBGL is committed to transparent disclosure, board oversight and robust internal controls. The Board comprises [6] directors, including [3] Non-executive independent directors, and is supported by the Audit, Nomination & Remuneration, corporate social responsibility, risk management and Stakeholders Relationship Committees, which meet at prescribed intervals. The Company complies with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and its Code of Conduct governing directors and senior management.

Human Resources

The Company regards its people as central to its ability to execute projects and serve customers. As at 31 March 2026, SBGL had 49 employees across development, sales, finance, project execution and the solar vertical.

Risk Management

The Company operates a structured risk management approach through which the Board and management identify, assess, and mitigate the principal risks to the business. The key risks and mitigation measures are set out below.

Market and demand risk: Real estate demand is sensitive to interest rates, income growth, buyer sentiment and macroeconomic conditions.

Mitigation: concentration in the structurally resilient Pune market, a diversified product mix across residential and commercial segments, and phased project launches aligned to absorption.

Project execution risk: Delays in approvals, construction or delivery can affect timelines, costs and reputation.

Mitigation: disciplined project planning, experienced execution teams, contractor management, and periodic milestone monitoring.

Regulatory and compliance risk: The sector is governed by RERA, environmental clearances, municipal approvals and evolving tax and listing regulations.

Mitigation: Dedicated compliance oversight, professional advisors and proactive tracking of regulatory change.

Liquidity and financial risk: Development is working-capital-intensive and exposed to funding availability and cost.

Mitigation: Prudent capital structure, monitoring of the working-capital cycle, and diversification of income through annuity streams.

Input-cost and supply-chain risk: Movement in cement, steel, labour and other input costs can compress margins.

Mitigation: Efficient procurement planning, longterm vendor relationships, and implementation of cost control measures.

New-vertical (solar EPC) risk. Entry into renewable energy introduces technology, execution and competitive risks in an adjacent market.

Mitigation: Taking leveraging existing project- execution capabilities, qualified partners and selective bidding.

During the year, the Company continued to invest in skill development, on-site safety and a performance-oriented culture, and maintained cordial industrial relations across its offices and project sites. The Companys talent priorities include attracting and retaining qualified professionals in real estate and renewable energy, strengthening execution capability, and fostering a safe and engaged workplace.

Internal Control Systems and Their Adequacy

The Company has in place internal control systems commensurate with the nature, size and complexity of its business, designed to provide reasonable assurance regarding the efficiency of operations, the reliability of financial reporting, the safeguarding of assets, and compliance with applicable laws and regulations.

These systems encompass documented policies and authorisation frameworks, defined approval hierarchies, and periodic management review. Transactions are recorded and reported in conformity with applicable accounting standards. The internal audit function, conducted by an independent internal auditor / carried out through management review,

reviews the adequacy and effectiveness of controls across key processes, and its findings, together with corrective actions, are placed before the Audit Committee. The Audit Committee reviews the internal control environment, audit observations and the implementation of recommendations, and provides oversight of financial reporting.

Based on the reviews conducted during the year, the Board is of the view that the Companys internal control systems were adequate and operating effectively during FY26.

Cautionary Statement

Certain statements in the Management Discussion and Analysis regarding future prospects may be forward-looking and involve risks that could cause actual results to differ. These include macroenvironment changes and evolving, uncertain risks affecting the Company. Results depend on assumptions based on internal and external information, which may change over time. These forward-looking statements reflect the Companys current beliefs and are valid only as of the date made. The Company is not obliged to update them due to new information or events.