Thrive Future Habitats Limited Management Discussions

The global economy remained resilient during FY 2025-26, despite continued uncertainty arising from geopolitical tensions, volatile energy prices, trade-related developments, and challenging financial conditions. According to the International Monetary Fund (IMF), elevated trade tensions and persistent policy uncertainty moderated global economic growth during the year. Nevertheless, the global economy continued to demonstrate adaptability, supported by stabilising inflation and improving economic conditions in key markets.

Against this backdrop, India remained among the fastest-growing major economies, supported by strong domestic demand, resilient consumption, and sustained investment in infrastructure. Stable macroeconomic fundamentals, prudent policy measures, and favourable demographic trends continued to support economic activity. The countrys growth momentum, coupled with ongoing reforms and infrastructure development, provides a strong foundation for long-term economic expansion.

The Indian real estate sector continued to exhibit resilience and steady growth during the year, supported by urbanisation, infrastructure development, rising disposable incomes, and improving economic sentiment. Demand remained healthy across residential, commercial, and retail segments, with the residential market particularly benefiting from sustained interest in premium and luxury housing. The sector is also witnessing consolidation in favour of established developers with strong brands, proven execution capabilities, and quality project delivery. Growth in office spaces, expanding business activity, and increasing demand for organised retail assets further supported the sectors positive momentum. Despite global economic and geopolitical uncertainties, the long-term outlook for the Indian real estate sector remains favourable.

The personal care industry in India continued to witness steady growth, driven by rising consumer awareness, increasing disposable incomes, premiumisation trends, and expanding digital commerce. Consumer preference is increasingly shifting towards innovative, wellness-oriented, and safe products, while the growth of direct-to-consumer (D2C) channels and omni-channel distribution models is enhancing market accessibility. Sustainability, advanced formulations, and changing lifestyle preferences are expected to remain key growth drivers for the industry, although increasing competition and pricing pressures continue to shape market dynamics.

The Company is well-positioned to leverage opportunities arising from its integrated product development, manufacturing and testing capabilities, enabling it to serve as a reliable long-term partner to brands across domestic and international markets. Continued investments in facility upgradation are expected to enhance production flexibility, while the entry into the real estate sector provides an additional avenue for future growth.

The Company operates in a competitive business environment and is exposed to risks arising from changing consumer preferences, pricing pressures, fluctuations in input costs, and evolving regulatory requirements. Economic uncertainties, market volatility, and industry-specific challenges may also impact the Companys business performance and growth prospects.

The Personal Care Products Division continued to expand its market presence during the year, supported by strong customer relationships, improved manufacturing capabilities, and a focus on operational excellence. The Division remains focused on enhancing capacity utilisation and pursuing growth opportunities across existing and new markets.

During the year, the Company expanded its presence in the real estate sector through tear building strategic land acquisitions, working on joint venture opportunities etc. The Company remains focused on building a sustainable real estate portfolio in near future.

The Company remains optimistic about its growth prospects, supported by opportunities in the personal care industry and its strategic entry into the real estate sector. The Company will continue to focus on operational excellence and efficiency, strengthening customer relationships, and pursuing disciplined business expansion while exploring growth opportunities across its business segments.

The Company operates in a dynamic business environment and is exposed to various risks, including economic, regulatory, taxation, environmental, operational, liquidity, market, and counterparty risks. Geopolitical developments, inflationary pressures, interest rate fluctuations, and changes in regulatory frameworks may impact business performance, customer sentiment, project execution, and operating costs. The Company also monitors risks arising from supply chain disruptions, cybersecurity threats, and evolving market conditions. To address these risks, the Company has established a robust risk management framework focused on the identification, assessment, monitoring, and mitigation of key risks, while ensuring compliance with applicable laws and regulations and supporting sustainable business growth.

The Company has adequate internal control and internal financial control systems commensurate with the nature, size, and complexity of its operations. These controls are designed to safeguard assets, ensure compliance with applicable laws and regulations, maintain the accuracy of financial records, and promote operational efficiency. The Company has established well-defined policies, standard operating procedures (SOPs), and delegation of authority frameworks, which are periodically reviewed through internal audits and management oversight. The Audit Committee regularly reviews the adequacy and effectiveness of the internal control framework.

The details of the financial performance of the Company are reflected in the Balance Sheet, Statement of Profit & Loss and other Financial Statements, appearing separately. Highlights are provided below:

The financial performance of the Company has been further explained in the Boards Report of the Company for the Financial Year 2025-26 appearing separately.

The financial statements have been prepared in accordance with the requirement of Companies Act 2013, and applicable accounting standards as notified by Ministry of Corporate Affairs (MCA).

The Company believes that its employees are a key driver of sustainable growth and continues to focus on strengthening organisational capabilities through talent development, employee engagement, and continuous learning. The management remains committed to attracting, retaining, and developing talent, supported by initiatives such as training, job rotation, and internal mobility opportunities that foster professional growth and leadership development. The Company promotes a collaborative and inclusive work environment and places significant emphasis on employee well-being through various health, wellness, and work-life balance initiatives. Industrial relations remained cordial throughout the year.

The remarks of the change in the above mentioned ratios are provided in the Balance Sheet, Statement of Profit & Loss and other Financial Statements, appearing separately.

Company has increased capital during the financial year 2025-26 due to which its capital employed increases significantly.

The statements contained in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations, or predictions may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied due to various risks and uncertainties, including changes in economic conditions, industry trends, market demand, input costs, regulatory and tax policies, competition, availability of resources, and other factors beyond the Companys control. While the Company has relied on information and sources believed to be reliable, no representation is made regarding the accuracy or completeness of information that is external to the Company. The Company undertakes no obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.