The following discussion is intended to convey the managements perspective on our financial condition and results of operations for Fiscals 2026, 2025 and 2024. Unless otherwise stated, the financial information in this section has been derived from the Restated Financial Information.
Our Companys financial year commences on April 1 and ends on March 31 of subsequent year, and references to "Fiscal 2026", "Fiscal 2025" and "Fiscal 2024", are to the 12-month period ended March 31 of the relevant year.
Our Restated Financial Information have been prepared in accordance with Ind AS, Section 26 of the Companies Act, the SEBI ICDR Regulations and the Guidance Note. Ind AS differs in certain material respects from Indian GAAP, IFRS and U.S. GAAP. Accordingly, the degree to which our financial statements will provide meaningful information to a prospective investor in countries other than India is entirely dependent on the readers level of familiarity with Ind AS. As a result, the Restated Financial Information may not be comparable to our historical financial statements.
We have included various operational and financial performance indicators in this Red Herring Prospectus, many of which may not be derived from our Restated Financial Information or otherwise be subject to an examination, audit or review by our auditors or any other expert. The manner in which such operational and financial performance indicators are calculated and presented and the assumptions and estimates used in such calculations, may vary from that used by other companies in India and other jurisdictions. Investors are accordingly cautioned against placing undue reliance on such information in making an investment decision and should consult their own advisors and evaluate such information in the context of the Restated Financial Information and other information relating to our business and operations included in this Red Herring Prospectus.
This discussion and analysis contain forward-looking statements that reflect our current views with respect to future events and our financial performance, which are subject to numerous risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements. You should also read
"Forward-Looking Statements" and "Risk Factors" on pages 27 and 28, respectively, which discuss a number of factors and contingencies that could affect our business, financial condition and results of operations.
Unless the context otherwise requires, in this section, references to "we", "us", "our", "the Company" or "our Company" refers to Veegaland Developers Limited.
Unless otherwise indicated, industry and market data used in this section has been derived from the report titled Industry Research Report titled "Assessment of Residential Construction Sector - With focus on Kerala" dated December 26, 2025 and updated on August 7, 2026 ("ICRA Report"), prepared and issued by ICRA Analytics Limited ("ICRA") appointed by us on July 16, 2025 and exclusively commissioned and paid for by us for the purposes of confirming our understanding of the industry, in connection with the Issue. Unless otherwise indicated, financial, operational, industry and other related information derived from the ICRA Report and included herein with respect to any particular year, refers to such information for the relevant calendar year. ICRA is not connected to our Company, our Directors, our Promoters, our Promoter Group, our Key Managerial Personnel, Senior Management or Book Running Lead Manager. A copy of the ICRA Report is available on the website of our Company at www.veegaland.com/ipo-offer-documents. For further information, see "Risk Factor no. 47 - Industry information included in this Red Herring Prospectus has been derived from the ICRA Report, which was prepared by ICRA and exclusively commissioned and paid for by our Company for the purposes of the Issue, and any reliance on information from the ICRA Report for making an investment decision in the Issue is subject to inherent risks" on page 68. Also see ‘Certain Conventions, Use of Financial Information and Market Data and Currency of Presentation on page 22.
OVERVIEW
We are a real estate development Company engaged in the planning, and sale of multi-storied residential apartment projects in the state of Kerala, India. Our projects are developed across our mid-premium, premium, ultra-premium, luxe-series and ultra-luxury residential segments and are implemented in accordance with the applicable provision of RERA. We operate under our brand name ‘Veegaland Homes and as on date we have undertaken projects in Kochi, Thiruvananthapuram, Kozhikode and Thrissur in the state of Kerala, India. As of June 30, 2026, we have a portfolio comprising 10 Completed Projects, 12 Ongoing Projects, and 3 Upcoming Projects in the state of Kerala, India.
For further details, see "Our Business" beginning on page 226.
Key Operational and Financial Metrics
( in Lakhs, unless otherwise stated)
| Financial Metrics | Fiscals | ||
| 2026 | 2025 | 2024 | |
| Financial KPI | |||
| Revenue from Operations (1) | 25,097.62 | 19,237.53 | 11,076.76 |
| Revenue Growth YoY (2) | 30.46 | 73.67 | NA |
| EBITDA (3) | 4,264.22 | 3,377.35 | 1,672.23 |
| EBITDA Margin (in %)(4) | 16.78 | 17.21 | 14.59 |
| Profit after tax (5) | 2,661.46 | 2,042.59 | 786.88 |
| PAT Margin (in %) (6) | 10.47 | 10.41 | 6.87 |
| Return on Equity (in %) (7) | 16.02 | 36.96 | 19.12 |
| Return on Capital Employed (in %) (8) | 11.89 | 13.75 | 9.85 |
| Debt/Equity (9) | 0.32 | 2.70 | 2.67 |
| Operational KPI | |||
| Attrition Rate (%) (10) | 5.56% | 4.41% | 7.87% |
| Saleable area of Completed Projects (in square feet) (11) | 11,05,009 | 11,05,009 | 9,76,840 |
| Saleable area of Ongoing Projects (in square feet) (12) | 16,96,407 | 10,02,610 | 10,41,140 |
| Number of Completed Projects (13) | 10 | 10 | 9 |
| Number of Ongoing Projects (14) | 11 | 7 | 7 |
| Gross collections (including GST) (in lakhs) (15) | 29,183.24 | 20,754.45 | 12,530.78 |
| Sales value (excluding GST) (in Lakhs) (A) (16) | 39,361.92 | 33,837.82 | 18,696.01 |
| Sales area (saleable area in square feet) (B) (17) | 4,90,697 | 4,67,166 | 2,69,573 |
| Sales (Number of units) (18) | 261 | 270 | 167 |
| Average sale price per square feet (in ) (A/B) (19) | 8,021.63 | 7,243.21 | 6,935.42 |
Notes:
As certified by Statutory Auditors pursuant to their certificate dated August 28, 2026 and August 28, 2026 for financial key performance indicators and operational key performance indicators, respectively. The Audit committee in its resolution for approval of KPIs dated August 18, 2026 has also confirmed that the Company has not disclosed any KPIs to any investors at any point of time during the three years preceding the date of this Red Herring Prospectus other than as disclosed in this section.
1. Revenue from Operations: This represents revenue recognized as per Ind AS 115, Revenue from Contracts with Customers under Percentage of Completion method.
2. Revenue Growth YoY: Increase/(Decrease)in Revenue from Operations divided by the previous years Revenue from Operations.
3. EBITDA: Profit/(loss) before tax, plus interest finance costs and depreciation and amortization expense and finance costs for the year as per the Financial Statements.
4. EBITDA Margin (in %): Percentage of, EBITDA during a given period divided by Total Income.
5. PAT: Profit/(loss) for the year from continuing and discontinued operations after deducting all expenses and direct taxes as appearing in the Financial Statements.
6. PAT Margin (in %): Profit after tax divided by Total Income of the Company.
7. Return of Equity: Profit after tax for the year/period divided by average equity attributable to owners of the company for the year/period.
8. Return on Capital Employed (ROCE): It is calculated as earnings before interest and tax for the year/period excluding other income divided by capital employed (Total Equity + Current and Non-Current Borrowings +Deferred Tax Liability Deferred Tax Asset Intangible Asset).
9. Debt/Equity: The total debt (current and non-current borrowings) of the Company at the end of the year/period divided by the total equity of the Company at the end of the year/period. 10. Attrition Rate: Dividing the number of employees resigned during the period divided by the average number of employees.
11. Saleable area of completed projects: Aggregate of saleable area of all projects for which Occupancy Certificate has been received as
on a date.
12. Saleable area of Ongoing Projects: Aggregate of saleable area of all projects for which RERA approval is received but yet to receive
Occupancy Certificate for as on a date.
13. Number of completed projects: Aggregate number of projects for which Occupancy Certificate has been received as on a date.
14. Number of Ongoing Projects: Aggregate number of projects for which RERA approval is received but yet to receive Occupancy
Certificate as on a date.
15. Gross Collections: Aggregate of amounts received from Customers towards sale of apartments during a given period. 16. Sales Value: Aggregate agreement value of the apartments sold during the respective year.
17. Sales area (saleable area in square feet): Aggregate of saleable area of all units for which sale agreements have been executed in the respective years.
18. Sales (Number of Units): Aggregate number of units for which agreements have been executed during the respective years.
19. Average sale price per square feet: Aggregate agreement value of apartments which have been sold in the respective years divided by the aggregate saleable area of the said units.
FACTORS AFFECTING OUR RESULTS OF OPERATIONS AND FINANCIAL CONDITION
Our business, results of operations and financial condition are affected by a number of factors, some of which are beyond our control. This section sets out certain key factors that we believe have affected our business, results of operations and financial condition in the past or which we expect will affect our business, results of operations or financial condition in the future. For a detailed discussion of certain factors that may adversely affect our business, results of operations and financial condition, see "Risk Factors" page 28.
General economic conditions and performance of the real estate market in the state of Kerala
We drive substantial part of our revenue from our real estate activities focussed predominantly in the city of Kochi in Kerala. Accordingly, we are heavily dependent on the state of the Indian real estate sector, Kochi, Kerala real estate sector in particular and the Indian economy in general. As of June 30, 2026 we had 10 (ten) Completed Projects, 12 (twelve) Ongoing Projects and 3 (three) Upcoming Projects across Kochi, Thiruvananthapuram, Kozhikode and Thrissur in Kerala that include a project portfolio of residential segment. The table below sets forth details of the Saleable Area of our Completed Projects, Ongoing Projects and Upcoming Projects in micro-markets within Kochi, Thiruvananthapuram, Kozhikode and Thrissur as of June 30, 2026:
| Markets | Completed Projects | Ongoing Projects | Upcoming Projects | |||
| Saleable area (in square feet) | Percentage of Total Saleable Area (%) | Saleable area (in square feet) | Percentage of Total Saleable Area (%) | Saleable area (in square feet) | Percentage of Total Saleable Area (%) | |
| Kochi | 9,62,603 | 87.11% | 11,08,828 | 59.70% | 2,82,465 | 61.14% |
| Thiruvananthapuram | - | - | 4,75,478 | 25.60% | - | - |
| Kozhikode | - | - | 1,21,800 | 6.56% | 1,79,545 | 38.86% |
| Thrissur | 1,42,406 | 12.89% | 1,51,354 | 8.15% | - | - |
| Total | 11,05,009 | 100.00% | 18,57,460 | 100.00% | 4,62,010 | 100.00% |
The real estate market in the state of Kerala is among the prominent regional markets in India, encompassing major urban centres such as Kochi, Thiruvananthapuram, Kozhikode and Thrissur. These cities benefit from diversified economic activity, including information technology, tourism, healthcare, education, port-led trade and small and medium enterprises, which contribute to employment generation across sectors and support demand for residential real estate. Regulatory initiatives, including amendments to local building rules, town planning schemes and development control regulations, have facilitated real estate development in Kerala through rationalisation of Floor Area Ratio ("FAR") norms.
The prices and availability of basic building materials and other raw materials used in real estate development depend on factors beyond our control, including fluctuations in raw material costs, demand-supply conditions, general economic conditions, geopolitical developments, regulatory changes, competition, indirect taxes and import duties. Demand for residential properties is influenced by employment trends and disposable income levels. Any slowdown or perceived slowdown in the Indian economy, the Kerala state economy or specific sectors could adversely affect demand for real estate and, in turn, impact our business, results of operations and financial condition. Further, real estate markets within Kerala may perform differently in terms of supply, absorption and pricing, and any adverse change in market conditions in these regions could affect our operations and financial performance.
Sales of our project in timely manner
We typically commence sale of units along with the construction of projects. During the Fiscals 2026, 2025 and 2024, Revenue from Sale of projects was:
( in lakhs)
| Particulars | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 |
| Revenue from Completed projects | 339.13 | 1,981.12 | 5,013.85 |
| Revenue from Ongoing projects | 24,758.49 | 17,256.41 | 6,062.91 |
| Total Revenue from Operations | 25,097.62 | 19,237.53 | 11,076.76 |
Revenue is recognised in accordance with Ind AS 115 Revenue from Contracts with Customers, over the period of sale agreements executed with the Customer using the Percentage of Completion Method (POCM). Refer Note no 2.2.6 - Accounting Policies to the Restated Financial Information on page 304. Our revenues and costs may fluctuate from period to period due to a combination of factors beyond our control, including pace of bookings received and registration of sale agreements thereof in a particular period and volatility in expenses including costs of land/ development rights and construction costs. The volume and pace of sales depend on our ability to design projects that will meet customer preferences, location preferences and market trends, and the efficiency of marketing activities in getting customers to make bookings and enter into sale agreements at earlier stages of the projects. We market and pre-sale our projects in phases from the date of launch of the project after receiving requisite approvals, including those required under the RERA and building rules, which is after acquisition of the land or land development rights and completion of the designs and plans and continue into the construction and completion phases depending on market conditions. As of June 30, 2026, we have 12 (twelve) Ongoing Projects. Our projects schedules are susceptible to disruptions by and subject to unforeseen circumstances at different stages of planning and execution due to factors beyond our control including adverse weather conditions, availability of materials/ labour and minimising of impact to residents of the vicinity. This may lead to fluctuation in financial result for any financial period depending on work completed in that period. Therefore, our results of operations will significantly depend upon the size and number of projects which are available for sale, both in ongoing and completed projects, in each financial period as our revenue depends upon the volume of sales to obtained from such units as well as the rate of progress of construction of these projects.
Fluctuations in market prices for our Projects
Our total income is affected by the sales of our projects, which are affected by prevailing market conditions and prices in the real estate sector in the state of Kerala in particular and in India in general (including market forces of supply and demand), It is also affected by the nature and location of our projects, and other factors such as our brand perception, reputation and the design of our projects.
The real estate market in Kerala may be affected by various factors beyond our control, such as:
prevailing local and macro-economic conditions,
changes in the supply and demand for properties in the segments we operate, change in demographic trends, employment and income levels, availability of consumer financing (interest rates and eligibility criteria for loans), changes in the applicable government regulations and related policies, decrease in or restrictions on foreign currency remittances, regional natural disasters or pandemics, performance of key industrial sectors, or the public perception that any of these events may occur.
Since most of our ongoing and planned projects in India are concentrated in Kochi in Kerala than other districts of the state, we are particularly affected by changes in real estate market conditions in Kochi in Kerala, particularly by availability of, and demand for, projects comparable to those we develop and competition from other real estate developers to market and sell similar projects within the same micro-markets.
Sales volumes, revenue recognition and rate of progress of construction and development
The table below provides our revenue from operations for the Fiscal 2026, 2025 and 2024, also presented as a percentage of our total income:
| Particulars | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 | |||
| ( in lakh) | % of Total income | ( in lakh) | % of Total income | ( in lakh) | % of Total income | |
| Revenue from Operations | 25,097.62 | 98.75 | 19,237.53 | 98.04 | 11,076.76 | 96.64 |
We recognize revenue based on the fulfilment of performance obligations as set out in the contracts with our customers, which is further described in Note 2.2.6 of our Restated Financial Information. The estimate of costs are reviewed periodically by our management and any effect of changes therein is recognized in the period in which changes are determined. Our cost estimates are affected by, among other things, volatility in expenses comprising the costs to acquire land, development rights and construction costs. Such changes may in turn affect the profit recognized during the same Financial Year. Accordingly, our income across time periods may fluctuate significantly due to a variety of factors, including the size and number of our developments, execution of agreements and/or contracts with buyers and general market conditions. Variation of project timelines due to project delays and estimates may also have an adverse effect on our ability to recognize revenue in a particular period. As a result of one or more of these factors, the revenue from operations may vary significantly from one reporting period to the next.
Our Sales volumes within any Financial Year depends on our ability to, among other things:
design projects that will meet customer preferences and market trends;
timely market and sell our projects at reasonable pace. We market and sell our projects in phases from the date of launch of the project after receiving requisite approvals, including those required under the RERA and building rules, which is after acquisition of the land or land development rights and completion of the designs and plans and continue into the construction and completion phases depending on market conditions. the preference of our customers to pay for the projects or enter into sale agreements well in advance of receiving possession of the projects; and general market conditions
Our presales (sales done after launch and during construction of a project) have allowed us to benefit from instalment payments from our customers, which we are able to use as working capital. We estimate the total costs of a project prior to its commencement based on, among other things, the size, specifications and location of the project. We re-evaluate our project costs periodically. If, during the re-evaluation, the total project cost is estimated to exceed the total revenue from the project, we recognize the loss in the relevant Financial Year. Reevaluations also affect our ability to allocate resources to the project in a timely manner, which in turn affects construction progress. Our construction process is also affected by other factors including the competence of, and priority given to our projects by, our contractors, the receipt of approvals and regulatory clearances, access to utilities such as electricity and water, and the absence of contingencies such as litigation and adverse weather conditions.
Cost of construction and development
Our cost of construction includes the cost of raw materials such as steel, cement, flooring tiles, sanitary fittings, electrical fittings, plumbing materials, other building materials, labour costs, finance cost and other allocable expenses. Raw material prices, particularly those of steel and cement, may be affected by price volatility caused by various factors that affect the Indian and international commodity markets. If there are extraordinary price increases in construction materials due to increases in demand for cement and steel, or shortages in supply, the contractors we hire for construction or development work may be unable to fulfil their contractual obligations and may therefore be compelled to increase their contract prices. For the Fiscal 2026, Fiscal 2025 and Fiscal 2024, Cost of Goods Sold comprises of Operating Cost and Changes in inventories. Operating Cost comprises of cost of land and development rights, cost of material consumed, compensation, labour and contract expenses, professional charges, rates and taxes and other project expenses. Cost of Goods Sold for Fiscal 2026, Fiscal 2025 and Fiscal 2024 is 82.98%, 82.97% and 76.25% respectively, of our total expenses.
As a result, increases in costs for any construction materials may affect our construction costs, and consequently our margins unless we are able to pass on such costs by increasing the sales price for our projects. Further, certain approval costs and premiums payable to Government authorities are linked to the ready reckoner rates announced by the relevant government authorities periodically. Any increase in the ready reckoner rates increases our approval costs. In addition, the timing and quality of construction of the projects we develop depends on the availability and skill of our contractors and consultants, as well as contingencies affecting them, including labour and industrial actions, such as strikes and lockouts. Such labour and industrial actions may cause significant delays to the construction timetables for our projects and we may therefore be required to find replacement contractors and consultants at higher cost. As a result, any increase in prices resulting from higher construction costs could adversely affect demand for our projects and our profit margins.
Availability of financing on favourable terms
We fund our property development activities through a combination of medium and long-term debt and internal accruals. Accordingly, our ability to obtain financing, as well as the cost of such financing, affects our business. Though we believe we are able to obtain funding at competitive interest rates, cost of financing is material for us. Our total outstanding indebtedness as on March 31, 2026 is 8,558.90 lakh, and our finance costs before allocating to cost of projects for the year ended March 31, 2026 is 950.28 lakh. Major drivers behind the growth of demand for housing units are nuclearization of families, increasing in working population, rising disposable income, availability of housing loans at affordable interest rates. Changes in interest rates also affect the ability and willingness of our prospective real estate customers, particularly customers for our residential properties, to obtain financing for their purchase of our developments. The interest rate at which our real estate customers may borrow funds for the purchase of our properties affects the affordability and purchasing power of, and hence the market demand for, our residential real estate developments.
Regulatory framework
The real estate sector in India is highly regulated. Our operations including the acquisition of land and land development rights, and the implementation of our projects require us to obtain regulatory approvals and permits from multiple regulatory authorities. We are also subject to local and municipal laws relating to real estate development activities and the relevant development control regulations. These require approvals for construction and development of real estate projects including approvals for the ratio of built-up area to land area, plans for road access, community facilities, open spaces, water supply, sewage disposal systems, electricity supply, environmental suitability, safety features, zoning regulations and size of the project. Any delay or failure in getting any of these approvals for our projects may affect our business and result of operations.
Further, the Central Government notified the RERA on March 26, 2016 and has enforced RERA with effect from May 1, 2017. The RERA has been introduced to regulate the real estate industry and ensure, amongst others, imposition of certain responsibilities on real estate developers and accountability towards customers and protection of their interest. RERA requires the mandatory registration of real estate projects and developers are not permitted to issue advertisements or accept advances unless real estate projects are registered. The RERA also imposes restrictions on use of funds received from customers prior to project completion and taking customer approval for major changes in sanction plan. In addition, with the introduction of RERA we have to comply with specific legislations enacted by respective State Governments, where our Ongoing Projects, Upcoming Projects, or future projects may be located.
For further information on RERA and on changing laws and regulations in general see, "Risk Factor no. 29 We are subject to extensive statutory or governmental regulations, including the Real Estate (Regulation and Development) Act, 2016, and a change in laws, rules, regulations and legal uncertainties, including the withdrawal of certain benefits or adverse application of tax laws or any non-compliance of any applicable law, may adversely affect our business, results of operations and financial condition." and "Key Regulations and Policies in India" on pages 57 and 255.
Availability of future growth opportunities
Our growth is linked to the availability of land in areas where we intend to develop projects either by ourselves or through joint development or joint venture arrangements. The ability for the Company to grow in the market is relatively affected by the rate of growth of the market at large. Therefore, the Company may need to expand beyond Kerala in order to sustain the growth at the pace of its brand acceptance. This growth would be affected by its ability to maintain the efficiency and customer acceptance in such new geographies.
Competition
We compete for land, sale of projects, manpower resources and skilled personnel with other private developers. We face competition from various national and regional real estate developers. Moreover, as we seek to diversify our operations in other markets, we face the risk that some of our competitors have a wider geographical reach while some other competitors have a strong presence in regional markets. Some of our competitors may have greater resources (including financial, land resources, and other types of infrastructure) to take advantage of efficiencies created by size, and access to capital at lower costs, have a better brand recall, and established relationships with homeowners. For example, we face competition from some listed developers such as Puravankara Limited and Shriram Properties Limited and unlisted developers such as Skyline Foundations and Structures Private Limited and Asset Homes Private Limited that have real estate projects in Kerala region (Source: ICRA Report). Our success in the future will depend significantly on our ability to maintain and increase market share in the face of such competition. Our inability to compete successfully with the existing players in the industry, may affect our business prospects and financial condition.
For further details in relation to the competition we face and our significant competitors, see "Industry Overview - Competitive Landscape" and "Our Business - Competition" on pages 221 and 250.
Brand reputation and goodwill
We believe that our brand reputation and the goodwill associated with being part of a well-known group comprising V-Guard Industries Limited and Wonderla Holidays Limited play an important role in the success of our business and in fostering customer confidence. Our ability to leverage the groups established reputation and to differentiate our real estate offerings on the basis of quality, reliability, timely execution, eco-friendly designs and customer-centric practices is a significant factor in attracting and retaining customers.
This brand reputation or the goodwill associated with the group is susceptible to factors, including those beyond our control, such as delays in project execution, quality-related issues, customer complaints, adverse market perception, or negative publicity relating to us or other group entities in India or abroad. Any failure to uphold expected standards associated with the group brand, if not promptly and adequately addressed, may adversely affect our reputation, customer trust, competitive position, business prospects, financial condition, results of operations and cash flows.
Further, any negative publicity, adverse reports, claims, or public and/or defamatory statements relating to our real estate projects, construction quality, regulatory compliances, customer service, or those of other group companies could materially and adversely impact our brand image, reputation and corporate standing, and may affect our ability to conduct our business in the ordinary course.
Maintaining and enhancing our brand image and the goodwill associated with the group may also require us to incur significant costs and make continuous investments, including in project design and innovation, construction quality, safety and sustainability measures, marketing and brand communication initiatives, customer relationship management, and employee training and development. If these initiatives are not implemented effectively, or if our projects fail to meet customer expectations for any reason, leading to erosion of customer confidence in our brand, our ability to attract and retain customers and to successfully launch and sell future projects could be adversely affected.
PRESENTATION OF FINANCIAL INFORMATION
1. Basis of Preparation
The Restated Statement of Assets and Liabilities of the Company as at March 31, 2026, March 31, 2025, and March 31, 2024 the restated Statement of Profit and Loss (including other comprehensive income), the restated Statement of Changes in Equity and the restated Statement of Cash Flows for each of the years ended March 31, 2026, March 31, 2025 and March 31, 2024, and restated other financial information (together referred as Restated Financial Information) has been prepared under Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act) read with the Companies (Indian Accounting Standards) Rules, 2015 as amended and other relevant provisions of the Act, to the extent applicable.
The Restated Financial Information has been prepared by the management for inclusion in the Red Herring Prospectus (RHP) and the Prospectus to be filed by the company with Securities and Exchange Board of India ("SEBI") in connection with the proposed Initial Public Offering ("IPO") of equity shares of the Company. The Restated Financial Information, which has been approved by Board of Directors has been prepared in accordance with the requirements of:
(i) Section 26 of Part I of Chapter III of the Companies Act, 2013 ("the Act"), as amended from time to time ("the Act"); (ii) the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements)
Regulations, 2018, as amended to date (the "SEBI ICDR Regulations") issued by the Securities and Exchange Board of India (the "SEBI"); and (iii) The Guidance Note on Reports in Company Prospectuses (Revised 2019) issued by the Institute of
Chartered Accountants of India ("ICAI"), as amended from time to time (the "Guidance Note").
The accounting policies have been consistently applied by the Company in preparation of the Restated Financial Information and are consistent with those adopted in the preparation of audited Financial Statements for the year ended March 31, 2026. This Restated Financial Information does not reflect the effects of events that occurred subsequent to the respective dates of board meeting held to approve and adopt the Audited Financial Statements for the years ended March 31, 2026, March 31, 2025 and March 31, 2024.
The Restated Financial Information have been compiled by the Management from:
a) The audited Ind AS Financial Information of the Company as at and for the year ended March 31, 2026 and March 31, 2025 ("Audited Financial Statements") prepared in accordance with Ind AS notified under section 133 of the Companies Act, 2013 read together with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 as amended and Companies (Indian Accounting Standards) Amendment Rules, 2016 issued, which have been approved by the Board of Directors at their meeting held on May 19, 2026 and August 27, 2025 respectively. b) The comparative information as at and for the year ended March 31, 2024 included in the audited financial statements for the year ended March 31, 2025 have been prepared by making Ind AS adjustments to the audited financial statements of the Company as at and for the year ended March 31, 2024, prepared in accordance with the accounting standards notified under the Section 133 of the Act read with the Companies (Accounting Standards) Rules, 2021, as amended ("Indian GAAP") which have been approved by the Board of Directors at their meeting held on September 03, 2024.
The transition date adopted by the Company at the time of transition to Ind AS is April 01, 2023 for the purpose of preparation of audited Ind AS Financial Statements for the year ended March 31 2025 as required under the Act.
The Restated Financial Information have been prepared in accordance with the Act, SEBI ICDR Regulations and the ICAI Guidance Note after incorporating adjustments for the changes in accounting policies, material errors and regrouping/reclassifications, as applicable, retrospectively in the financial years ended March 31, 2025 and March 31, 2024 to reflect the same accounting treatment as per the accounting policies and grouping/classifications followed as at and for the year ended March 31, 2026; The Restated Financial Information have been approved by the Board of Directors on July 21, 2026.
Application of new and revised Ind AS
All the Ind ASs issued and notified by the Ministry of Corporate Affairs under the Companies (Indian Accounting Standards) Rules, 2015 (as amended) till the financial statements are authorised for issue have been considered in preparing these financial statements.
Presentation of Financial Statements
The Restated Financial Information of the Company have been prepared to comply in all material respects with the Indian Accounting Standards ("Ind AS") notified under the Companies (Indian Accounting Standards) Rules, 2015 as amended, presentation requirements of Division II of Schedule III to the Companies Act, 2013, (Ind AS compliant Schedule III), as applicable to the financial statements and other relevant provisions of the Act.
The Company generally reports financial assets and financial liabilities on a gross basis in the Balance Sheet. They are offset and reported net only where it has legally enforceable right to offset the recognised amounts and the Company intends to either settle on a net basis or to realise the asset and settle the liability simultaneously as permitted by Ind AS. Similarly, the Company offsets incomes and expenses and reports the same on a net basis where the netting off reflects the substance of the transaction or other events as permitted by Ind AS.
Functional And Presentation Currency
These Restated Financial Information are presented in Indian rupees (INR) which is also the Companys functional currency. All accounts are rounded-off to the nearest lakh with two decimals, unless otherwise stated.
Basis Measurement
Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company considers the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these financial statements is determined on this basis.
Fair value measurements are categorised into Level 1, 2, or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety.
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices;
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and place limited reliance on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2; and
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
Historical Cost Convention:
"The Restated Financial Information have been prepared on the accrual and going concern basis, and the historical cost convention except where the Ind AS requires a different accounting treatment. The principal variations from the historical cost convention relate to financial instruments classified as fair value for the followings: (i) certain financial assets and liabilities and contingent consideration that is measured at fair value; (ii) assets held for sale measured at fair value less cost to sell; (iii) defined benefit plans plan assets measured at fair value; and (iv) Historical cost is generally based on the fair value of the consideration given in exchange for goods and services."
Current/Non - Current classification.
"The Company as required by Ind AS 1 presents assets and liabilities in the balance sheet based on current /non-current classification. The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents. The Companys normal operating cycle in respect of operations relating to the construction of real estate projects may vary from project to project depending upon the size of the project, type of development, project complexities and related approvals and is ascertained from commencement of project till completion of project. The real estate development projects undertaken by the Company generally runs over a period ranging upto 4 years. Operating cycle for all completed projects is based on 12 months period. Operating assets and liabilities have been classified into current and non-current based on their respective operating cycles.
An asset is treated as current when it is:
Expected to be realized or intended to be sold or consumed in normal operating cycle
Held primarily for purpose of trading
Expected to be realized within twelve months after the reporting period, or
Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period
All other assets are classified as non-current.
A liability is treated as current when:
It is expected to be settled in normal operating cycle
It is held primarily for purpose of trading - It is due to be settled within twelve months after the reporting period, or
There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period
All other liabilities are classified as non current.
Deferred tax assets and deferred tax liabilities are classified as non- current assets and liabilities.
Use of Estimates and Judgements
The preparation of financial statements in conformity with Ind AS requires management to make estimates, judgements and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities (including contingent liabilities) and disclosures as of the date of the financial statements and the reported amounts of revenue and expenses for the reporting period. Actual results could differ from these estimates. Accounting estimates and underlying assumptions are reviewed on an ongoing basis and could change from period to period. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Appropriate changes in estimates are recognised in the periods in which the Company becomes aware of the changes in circumstances surrounding the estimates. Any revisions to accounting estimates are recognised prospectively in the period in which the estimate is revised and future periods.
In particular, information about material areas of estimation, uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the financial statements is included in the following notes: (i) Assumptions involved in actuarial valuation of defined employee benefit assets and liabilities (ii) Fair value measurement
(iii) Contingent liabilities and provisions
(iv) Determination of performance obligations and timing of revenue recognition on revenue from real estate development (v) Recognition of Deferred Tax Asserts (vi) Accounting for revenue and land cost for projects executed through joint development agreements (vii) Computation of percentage completion for projects in progress, project cost and revenue (viii) Useful lives of Property, Plant and Equipment, Investment Property and Intangible Assets (ix) Impairment of tangible and intangible assets other than goodwill (x) Net realisable value of inventory (xi) Impairment of trade receivables
SIGNIFICANT ACCOUNTING POLICIES
The notes to our Restated Financial Information included in this Red Herring Prospectus contain a summary of our material accounting policies. Set forth below is a summary of our most significant accounting policies under Ind AS.
Property, Plant and Equipment
On transition to Ind AS, the Company has elected to continue with the carrying value of all of its property, plant and equipment recognised as at 1st April, 2023 measured as per the previous GAAP and use that carrying value as the deemed cost of the property, plant and equipment.
Tangible property, plant and equipment (PPE) are stated at cost less accumulated depreciation and impairment, if any. The cost of an item of property, plant and equipment is recognised if it is probable that future economic benefits associated with the item will flow to the Company and the cost thereof can be measured reliably. All property, plant and equipment are initially recognised at cost net of tax/ duty credits availed. Cost comprises the purchase price and any directly attributable cost to bring the asset to its working condition for its intended use. Subsequent expenditure incurred on assets put to use is capitalised only when it increases the future economic benefits/ functioning capability from/of such assets. Advances paid towards acquisition of property, plant and equipment, outstanding at each Balance Sheet date is classified as capital advances under other non-financial assets and the cost of assets not put to use before such date are disclosed under Capital work-in-progress.
Depreciation
Depreciation is recognised so as to write-off the cost of assets less their residual values over their useful lives, using the straight-line method. The estimated useful lives, residual values and depreciation method are reviewed at the end of each financial year, with the effect of any changes in estimate accounted for on a prospective basis. Assets purchased during the year are depreciated on the basis of actual number of days the asset has been put to use in the year. Assets individually costing Rs. 5,000/- or less are fully depreciated in the year of purchase.
Estimated useful life of assets is as below:
| Category of PPE | Estimated useful life as assessed by the Company |
| Plant and Equipment | 15 Years |
| Office and electrical equipments | 5 Years |
| Computer | 3 Years |
| Leasehold improvements | 5 Years |
| Furniture, fixture and fittings | 10 Years |
| Bikes and Scooters | 10 Years |
| Motor vehicles | 8 Years |
Changes in the expected useful life are accounted for by changing the depreciation period or methodology, as appropriate and treated as changes in accounting estimates.
The Management believes that these estimated useful lives are realistic and reflect fair approximation of the period over which the assets are likely to be used.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in the Statement of Profit and Loss.
Intangible Assets
On transition to Ind AS, the Company has elected to continue with the carrying value of all of the Intangible assets recognised as at 1st April, 2023 measured as per the previous GAAP and use that carrying value as the deemed cost of the Intangible Asset.
Intangible assets are recognised when it is probable that the future economic benefits that are attributable to the asset will flow to the enterprise and the cost of the asset can be measured reliably. Intangible assets are stated at original cost net of tax/ duty credits availed, if any, less accumulated amortization, and cumulative impairment. Direct expenses (including salary costs) and administrative and other general overhead expenses that are specifically attributable to acquisition of intangible assets are allocated and capitalised as a part of the cost of the intangible assets.
Intangible assets not ready for the intended use on the date of the Balance Sheet are disclosed as "Intangible assets under development".
Amortisation is recognised on a straight-line basis over their estimated useful lives. The estimated useful life and amortisation method are reviewed at the end of each financial year, with the effect of any changes in estimate being accounted for on a prospective basis. The estimated useful life of Software is considered as 4 years.
An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, and are recognised in the statement of profit or loss when the asset is derecognised.
Impairment
The Company assesses at each Balance Sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. The recoverable amount is the higher of an assets net selling price and its value in use. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the Statement of Profit and Loss. A previously recognised impairment loss is increased or reversed depending on changes in circumstances. However, the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation/amortisation had there been no impairment.
Investment Property
Land or building held to earn rentals or for capital appreciation or both rather than for use in the production or supply of goods or services or for administrative purposes; or sale in the ordinary course of business is recognised as Investment Property. Land held for a currently undetermined future use is also recognised as Investment Property. An investment property is measured initially at its cost. The cost of an investment property comprises its purchase price and any directly attributable expenditure. After initial recognition, the Company carries the investment property at the cost less accumulated depreciation and accumulated impairment, if any.
After initial recognition, the Company measures all of its Investment Property in accordance with Ind AS 16 Property, Plant and Equipment requirements for cost model. The depreciable amount of an item of Investment Property is allocated on a systematic basis over its useful life, as applicable. the Company provides depreciation on the straight line method. Changes in the expected useful life are accounted for by changing the depreciation period or methodology, as appropriate and treated as changes in accounting estimates. The estimated useful lives, residual values and depreciation method are reviewed at the end of each financial year, with the effect of any changes in estimate accounted for on a prospective basis. The depreciation charge for each period is generally recognised in the Statement of Profit and Loss. Any gain or loss on disposal of an Investment Property is recognised in the Statement of Profit and Loss.
Fair value of investment property is based on a valuation by an independent valuer who holds a recognised and relevant professional qualification and has recent experience in the location and category of the investment property being valued.
Inventories
Inventories are valued as under:
(i) Land (for project construction) - Land and plots other than area transferred to construction work in progress at the commencement of construction are valued at lower of cost or net realizable value. Cost includes land acquisition cost, development charges and apportioned borrowing cost. Land inventory which is under development or held for development/ sale in near future is classified as current assets. Land which is held for undetermined use or for future development is classified as non-current asset/investment property. (ii) Project Work in Progress - Construction work in progress represents cost incurred in respect of the real estate development projects which includes cost of land, construction cost, allocated interest and allocated expenses and is valued at lower of cost and net realizable value. (iii) Finished Apartments - are valued at lower of Cost or Net realizable value
Direct expenditure relating to construction activity is included in cost of inventory. Other expenditure (including borrowing costs) during construction period is included in cost of inventory to the extent the expenditure is directly attributable to cost of bringing the assets to its working condition for its intended use. Other expenditure (including borrowing costs) incurred during the construction period which is not directly attributable for bringing the asset to its working condition for its intended use is charged to the Statement of Profit and Loss. Direct and other expenditure including expected warranty costs is determined based on specific identification to the construction and real estate activity. Cost incurred/ items purchased specifically for projects are taken as consumed as and when incurred/ received.
Revenue Recognition
(i) Revenue from contracts with customers
Revenue from contract with customer is recognised, when control of the goods or services are transferred to the customer, at an amount that reflects the consideration to which the Company is expected to be entitled in exchange for those goods or services. Revenue is measured based on the transaction price, which is the consideration, adjusted for discounts and other credits, if any, as specified in the contract with the customer. The Company presents revenue from contracts with customers net of indirect taxes in its Statement of Profit and Loss. The Company considers whether there are other promises in the contract that are separate performance obligations to which a portion of the transaction price needs to be allocated. In determining the transaction price, the Company considers the effects of variable consideration, the existence of significant financing components, non-cash consideration, and consideration payable to the customer (if any). The Company assesses its revenue arrangements against specific criteria in order to determine if it is acting as principal or agent. The Company concluded that it is acting as a principal in all of its revenue arrangements. The specific recognition criteria described below must also be met before revenue is recognised.
Revenue is recognised as follows:
a) Revenue from real estate projects
The Company recognises revenue, on execution of agreement and when control of the goods or services are transferred to the customer, at an amount that reflects the consideration (i.e. the transaction price) to which the Company is expected to be entitled in exchange for those goods or services excluding any amount received on behalf of third party (such as indirect taxes).
An asset created by the Companys performance does not have an alternate use and as per the terms of the contract, the Company has an enforceable right to payment for performance completed till date. Hence the Company transfers control of a good or service over time and, therefore, satisfies a performance obligation and recognises revenue over the period of time. The Company recognises revenue for performance obligation satisfied over the period of time only if it can reasonably measure its progress towards complete satisfaction of the performance obligation.
Sale of residential units consists of sale of undivided share of land and constructed area to the customer, which have been identified by the Company as a single performance obligation, as they are highly interrelated with each other. For contracts involving sale of real estate unit, the Company receives the consideration in accordance with the terms of the contract in proportion of the percentage of completion of such real estate project and achievement of milestone of contract and represents payments made by customers to secure performance obligation of the Company under the contract enforceable by customers. Such consideration is received and utilised for specific real estate projects in accordance with the requirements of the Real Estate (Regulation and Development) Act, 2016. Consequently, the Company has concluded that such contracts with customers do not involve any financing element since the same arises for reasons explained above, which is other than for provision of finance to/from the customer.
Sale of residential units consists of sale of undivided share of land and constructed area to the customer, which have been identified by the Company as a single performance obligation, as they are highly interrelated with each other. For contracts involving sale of real estate unit, the Company receives the consideration in accordance with the terms of the contract in proportion of the percentage of completion of such real estate project and achievement of milestone of contract and represents payments made by customers to secure performance obligation of the Company under the contract enforceable by customers. Such consideration is received and utilised for specific real estate projects in accordance with the requirements of the Real Estate (Regulation and Development) Act, 2016. Consequently, the Company has concluded that such contracts with customers do not involve any financing element since the same arises for reasons explained above, which is other than for provision of finance to/from the customer.
In respect of sale of stock of units in completed projects, revenue is recognised at the point of time of transfer of control of the units upon execution of agreement
In respect of Joint development (‘JD) arrangements wherein the land owner/ possessor provides land and in lieu of land owner providing land, the Company transfers certain percentage of constructed area/ revenue proceeds ,the revenue from development and transfer of constructed area is recognised over the period of time. Project costs include fair value of such land received and the same is accounted on the commencement of the project. When the fair value of the land received cannot be measured reliably, the revenue and cost is measured at the fair value of the estimated construction service rendered to the landowner, adjusted by the amount of any cash or cash equivalents transferred. In case of JD arrangements, where performance obligation is satisfied over the period of time, the Company recognises revenue only when it can reasonably measure its progress in satisfying the performance obligation. Until such time, the Company recognises revenue to the extent of cost incurred, provided the Company expects to recover the costs incurred towards satisfying the performance obligation.
b) Contract Balances
A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the Company performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is recognised for the earned consideration that is conditional.
A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Company transfers goods or services to the customer, a contract liability is recognised when the payment is made or the payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the Company performs under the contract.
A receivable represents the Companys right to an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due).
c) Contract Cost Assets
Costs incurred in the nature of sales commission (for obtaining certain contracts to sell certain residential units) and the legal fees (for registration of sale agreements) are recognised as an asset (prepaid expense) in the nature of incremental cost of obtaining a contract. These costs are amortised on a systematic basis that is consistent with the satisfaction of the performance obligations arising out of such contracts. Such Contract Cost assets are reported under Other Assets.
d) Revenue from other Operating Activities
Revenue from marketing and commission is recognised at the point in time.
(ii) Interest income
Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time proportionate basis, by reference to the principal outstanding and at the effective interest rate applicable.
Leases
The Company follows Ind AS 116 - Leases for accounting for contracts which are in the nature of leases (other than short term leases and leases of low value assets). A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
As a Lessee:
The Company accounts for each lease component within the contract as a lease separately from non - lease components of the contract and allocates the consideration in the contract to each lease component on the basis of the relative standalone price of the lease component and the aggregate stand-alone price of the non-lease components.
The Company recognises right-of-use asset representing its right to use the underlying asset for the lease term at the lease commencement date. The right-of-use assets are depreciated using the straight-line method from the commencement date over the lease term. Right-of-use assets are tested for impairment whenever there is any indication that their carrying amounts may not be recoverable. Impairment loss, if any, is recognised in the Statement of Profit and Loss.
The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement date of the lease. Lease liabilities are measured at the present value of the contractual payments due to the lessor over the lease term, with the discount rate determined by reference to the rate inherent in the lease unless (as is typically the case) this is not readily determinable, in which case the
Companys incremental borrowing rate on commencement of the lease is used. The lease liability is subsequently remeasured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made and remeasuring the carrying amount to reflect any reassessment or lease modifications or to reflect revised in-substance fixed lease payments. Variable lease payments are only included in the measurement of the lease liability if they depend on an index or rate. In such cases, the initial measurement of the lease liability assumes the variable element will remain unchanged throughout the lease term. Other variable lease payments are expensed in the period to which they relate.
The Company recognises the amount of the re-measurement of lease liability as an adjustment to the right-of-use asset. Where the carrying amount of the right-of-use asset is reduced to zero and there is a further reduction in the measurement of the lease liability, the Company recognises any remaining amount of the re-measurement in the Statement of Profit and Loss.
The Company has elected not to apply the requirements of Ind AS 116 to short - term leases of all assets that have a cancellable lease term of 12 months or less and leases for which the underlying asset is of low value. The lease payments associated with these leases are recognized as an expense on a straight - line basis over the lease term.
As a Lessor:
Leases for which the Company is a lessor is classified as a finance or operating lease. Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases.
Taxation
Income tax expense represents the sum of current tax and deferred tax.
(i) Current tax
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date and applicable to the year.
Current tax is determined at the amount of tax payable in respect of taxable profit for the year as per the Income Tax Act, 2025. Taxable profit differs from ‘profit before tax as reported in the Statement of
Profit and Loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The entitys current tax is calculated using tax rate that has been enacted by the end of the reporting period.
(ii) Deferred tax
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the end of the reporting period and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.
Deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient future taxable profits will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.
Current tax and deferred tax is recognised in Statement of Profit and Loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.
Employee Benefits
(i) Short Term employee benefits
All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits and recognised in the period in which the employee renders the related service and include performance incentives and compensated absences which are expected to occur within twelve months after the period in which the employee rendered the related service. Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service.
The cost of short-term compensated absences is accounted as under:
in case of accumulated compensated absences, when employees render the services that increase their entitlement of future compensated absences; and in case of non-accumulating compensated absences, when the absences occur.
(ii) Defined Contribution Plans
The Company has defined contribution plans for employees comprising of Provident Fund and
Employees State Insurance. The contributions paid/payable to these plans during the year are recognised as employee benefit expense in the Statement of Profit and Loss for the year. The Company has no further payment obligations once the contributions have been paid.
(iii) Defined Benefit Plans
Payment of Gratuity to employees is covered by the Gratuity Trust Scheme based on the Group Gratuity cum Life Assurance Scheme of the LIC of India, which is a defined benefit scheme and the Company makes contributions under the said scheme.
The liability or assets recognised in the Balance Sheet in respect of defined benefit gratuity plan is the present value of the defined benefit obligation at the end of the reporting period less the fair value of the plan assets. The defined benefit obligation is actuarially valued using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation. The net interest cost is calculated applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in the employee benefit expenses in the Statement of Profit and Loss. Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the Statement of Changes in Equity and in the Balance Sheet. Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in Statement of Profit and Loss as past service cost.
(iv) Long-term employee benefits
Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related service are recognised as a liability at the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. The benefits are discounted using the market yields at the end of the reporting period that have terms approximating to the terms of the related obligation. Remeasurements as a result of experience adjustments and changes in actuarial assumptions are recognised in Statement of Profit and Loss.
The obligations are presented as current liabilities in the Balance Sheet if the entity does not have an unconditional right to defer the settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.
Borrowing Cost
Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Interest expense is recognised by applying the Effective Interest Rate (EIR) to the gross carrying amount of financial liabilities other than financial liabilities classified as FVTPL. Interest expense includes issue costs that are initially recognized as part of the carrying value of the financial liability and amortized over the expected life using the effective interest method. These include processing charges, fees and commissions payable to advisers and other expenses such as external legal costs, rating fee etc, provided these are incremental costs that are directly related to the issue of a financial liability.
Borrowing costs, allocated to and utilised for qualifying assets, pertaining to the period from commencement of activities relating to construction / development of the qualifying asset up to the date of capitalisation/completion of such asset, is added to the cost of the assets. Capitalisation of borrowing costs is suspended and charged to the Statement of Profit and Loss during extended periods when active development activity on the qualifying assets is interrupted.
A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale and includes the real estate projects developed by the Company.
Financial Instruments
(i) Recognition of Financial Instruments
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the financial instruments.
(ii) Initial measurement of Financial Instruments
Financial assets and financial liabilities are initially measured at fair value. However, trade receivables that do not contain a significant financing component are measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at FVTPL) are added to or deducted from their respective fair value on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at FVTPL are recognised immediately in the Statement of Profit and Loss.
A financial asset and a financial liability is offset and presented on a net basis in the Balance Sheet when there is a current legally enforceable right to set-off the recognised amounts and it is intended to either settle on net basis or to realise the asset and settle the liability simultaneously.
(iii) Classification and Subsequent Measurement of Financial Instruments
a) Financial assets
All regular way purchases or sales of financial assets are recognised and derecognised on a trade-date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the market place.
All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on the classification of the financial assets.
(i) Financial assets carried at amortised cost (AC)
A financial asset is measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
(ii) Financial assets at fair value through Other Comprehensive Income (FVTOCI)
A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Further, in cases where the Company has made an irrevocable election based on its business model, for its investments which are classified as equity instruments, the subsequent changes in fair value are recognised in other comprehensive income
(iii) Financial assets at fair value through profit or loss (FVTPL)
A financial asset which is not classified in any of the above categories is measured at FVTPL.
Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any gains or losses arising on remeasurement recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any dividend or interest earned on the financial asset.
(iv) Impairment of financial asset
The Company applies the expected credit loss model for recognising impairment loss on financial assets measured at amortised cost, debt instruments at FVTOCI and other contractual rights to receive cash or other financial assets.
For trade receivables and other financial assets
For trade receivables or any contract assets within the scope of Ind AS 115 and that do not contain any significant financing component in accordance with Ind AS 115, provision for bad and doubtful debts is based on the simplified approach of impairment of trade receivables permitted by Ind AS 109 Financial instruments which requires lifetime expected credit losses to be recognized excepting those which are contractually not due as per the terms of the contract or those which are considered realizable based on a case to case review. The expected credit loss is computed based on a provision matrix which takes into account historical credit loss experience and is adjusted for forward looking information.
If the credit risk on the trade receivables has not increased significantly since initial recognition, the Company measures the loss allowance for that financial instrument at an amount equal to 12-month expected credit losses. 12-month expected credit losses are portion of the life-time expected credit losses and represent the lifetime cash shortfalls that will result if default occurs within the 12 months after the reporting date and thus, are not cash shortfalls that are predicted over the next 12 months.
(v) Derecognition of Financial Assets
The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party and the transfer qualifies for derecognition under Ind AS 109.
If the Company enters into transactions whereby it transfers assets recognised on its Balance Sheet but retains either all or substantially all of the risks and rewards of the transferred assets, the transferred assets are not de-recognised and the proceeds received are recognised as a collateralised borrowing.
On derecognition of a financial asset in its entirety, the difference between the assets carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognised in other comprehensive income and accumulated in equity is recognised in the Statement of Profit and Loss.
b) Financial liabilities and equity instruments
(i) Classification as debt or equity
Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.
(ii) Equity instruments
An Equity Instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.
(iii) Financial Liabilities
A financial liability is any liability that is:
Contractual obligation:
to deliver cash or another financial asset to another entity; or
to exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavourable to the entity; or
a contract that will or may be settled in the entitys own equity instruments.
Financial Liabilities are subsequently measured at amortized cost using the effective interest method, except those that are classified as FVTPL. Financial Liability is classified at FVTPL if it is held for trading or it is a derivative or it is designated as such on initial recognition. For trade and other payables maturing within one year from the Balance sheet date, the carrying amount approximates the fair value due to the short maturity of these instruments.
(iv) Derecognition of financial liabilities
The Company derecognises financial liabilities when, and only when, the Companys obligations are discharged, cancelled or have expired. An exchange with a lender of debt instruments with substantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, a substantial modification of the terms of an existing financial liability (whether or not attributable to the financial difficulty of the debtor) is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in the Statement of Profit and Loss.
Fair Value Measurement
For financial assets and financial liabilities that have a short - term maturity (less than twelve months), the carrying amounts, which are net of impairment, are a reasonable approximation of their fair value. Fair Value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these financial statements is determined on such a basis and measurements that have some similarities to fair value but are not fair value, such as net realisable value in Ind AS 2 or value in use in Ind AS 36. In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2, or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;
Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and
Level 3 inputs are unobservable inputs for the asset or liability
Provisions, Contingent Liabilities and Contingent Assets
Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and quantification of the liability requires the application of judgement to existing facts and circumstances, which can be subject to change. The carrying amounts of provisions and liabilities are reviewed regularly and revised to take account of changing facts and circumstances.
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, considering the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).
Contingent Liabilities are disclosed when the Company has a possible obligation or a present obligation and it is probable that an outflow of resources will not be required to settle the obligation or the amount of obligation cannot be measured with sufficient reliability.
Contingent assets are not recognized in the books of account. If it has become virtually certain that an inflow of economic benefits will arise, then the related asset is not a contingent asset and such asset and the related income are recognised in the financial statements of the period in which the change occurs. If an inflow of economic benefits has become probable, the Company discloses the contingent asset.
Provisions, Contingent Liabilities, and Contingent Assets are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates.
Commitments
Commitments are future liabilities for contractual expenditure, classified and disclosed as follows:
estimated amount of contracts remaining to be executed on capital account and not provided for; uncalled liability on shares and other investments partly paid;
other non-cancellable commitments, if any, to the extent they are considered material and relevant in the opinion of the management.
Foreign Currencies
The functional currency and presentation currency of the Company is Indian Rupee (INR). Functional currency of the Company has been determined based on the primary economic environment in which the Company operates considering the currency in which funds are generated, spent and retained.
Transactions in currencies other than the Companys functional currency are recorded on initial recognition using the exchange rate at the transaction date. At each Balance Sheet date/ reporting date, foreign currency monetary items are reported at the prevailing closing spot rate. Non-monetary items that are measured in terms of historical cost in foreign currency are not retranslated.
Exchange differences that arise on settlement of monetary items or on reporting of monetary items at each Balance Sheet date at the closing spot rate are recognised in the Statement of Profit and Loss in the period in which they arise.
Cash and Cash Equivalents
Cash and Cash Equivalents include cash at banks and cash on hand, demand deposits with banks, other short-term highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. They are held for the purposes of meeting short-term cash commitments (rather than for investment or other purposes).
Segment Reporting
Operating segments are those components of the business whose operating results are regularly reviewed by the chief operating decision maker (CODM) of the Company to make decisions for performance assessment and resource allocation. The reporting of segment information is the same as provided to the management for the purpose of the performance assessment and resource allocation to the segments. Segment accounting policies are in line with the accounting policies of the Company.
Events after reporting date
If the Company receives information after the reporting period, but prior to the date of approved for issue, about conditions that existed at the end of the reporting period, it will assess whether the information affects the amounts that it recognises in its financial statements. The Company will adjust the amounts recognised in its financial statements to reflect any adjusting events after the reporting period and update the disclosures that relate to those conditions in light of the new information. For non-adjusting events after the reporting period, the Company will not change the amounts recognised in its financial statements, but will disclose the nature of the non-adjusting event and an estimate of its financial effect, or a statement that such an estimate cannot be made, if applicable.
Earnings per share
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period is adjusted for events such as bonus issue that have changed the number of equity shares outstanding, without a corresponding change in resources. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date.
Cash Flow Statement
The Cash Flow Statement shows the changes in cash and cash equivalents arising during the year from operating activities, investing activities and financing activities.
The cash flows from operating activities are determined by using the indirect method. Net income is therefore adjusted by non-cash items, such as measurement gains or losses, changes in provisions, impairment of property, plant and equipment and intangible assets, as well as changes from receivables and liabilities. In addition, all income and expenses from cash transactions that are attributable to investing or financing activities are eliminated.
For the purpose of the Statement of Cash Flows, cash and cash equivalents consist of cash and short-term deposits, net of outstanding bank overdrafts as they are considered an integral part of the Companys cash management.
Application of new and revised Ind AS
The Ministry of Corporate Affairs (MCA) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. The Ministry of Corporate Affairs vide notification dated May 7, 2025 and August 13, 2025 notified the Companies (Indian Accounting Standards) Amendment Rules, 2025 and Companies (Indian Accounting Standards) Second Amendment Rules, 2025, respectively, which amended certain accounting standards (see below), and are effective for annual reporting periods beginning on or after April 1, 2025
Amendment to Ind AS 1 - Classification of liabilities as current or non-current and non-current liabilities with covenants: The amendment specifies the requirements for classifying liabilities as current or non-current in the balance sheet based on entitys right to defer settlement of a liability. These amendments have no effect on the measurement of any items in the financial statements of the Company. The Company did not make retrospective adjustments as a result of adopting the amendments to Ind AS 1.
Amendment to Ind AS 7 and Ind AS 107, The amendments to Ind AS 7 ‘Statement of Cash Flows and Ind AS 107 ‘Financial Instruments: Disclosures clarify the characteristics of supplier finance arrangements and require additional disclosures for such arrangements. These amendments did not have any material impact on the disclosures in the financial statements of the Company.
Amendments to Ind AS 12 - International Tax Reform Pillar Two Model Rules - The amendments had no impact on the financial statements as the Company is not in the scope of the Pillar Two model rules.
Amendments to Ind AS 21 - Lack of Exchangeability - The amendments had no impact on the financial statements since the company is not exposed to multiple currencies.
Standards issued but not yet effective
Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2026, MCA has not notified any new standards but has notified an amendment to the existing standard applicable to the Company as stated below:
Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants Amendments to Ind AS 1
This amendment, also includes specific provisions that will take effect for reporting periods beginning on or after April 1, 2026, as outlined below.
Under the existing Ind AS 1, where there is a breach of a material provision of a long-term loan arrangement on or before the end of the reporting period with the effect that the liability becomes payable on demand on the reporting date, the entity does not classify the liability as current, if the lender agrees, after the reporting period and before the approval of the financial statements for issue, not to demand payment as a consequence of the breach.
However, the amended requirements stipulate that entities will no longer be permitted to consider lender waivers that are granted after the reporting date but before the financial statements are approved for the purpose of classification of loans. This amendment is required to be applied retrospectively in accordance with Ind AS 8.
The company does not expect this amendment to have an impact on its operations or financial statements as there are no material breach of financial covenants.
Non- GAAP Measures
Gross Margin, Gross Margin %, EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin, PAT
Margin %, ROE, ROCE (together, "Non-GAAP Measures"), presented in this section is a supplemental measure of our performance and liquidity that is not required by, or presented in accordance with, Ind AS, Indian GAAP, IFRS or US GAAP. Further, these Non-GAAP Measures are not a measurement of our financial performance or liquidity under Ind AS, Indian GAAP, IFRS or US GAAP and should not be considered in isolation or construed as an alternative to cash flows, profit/ (loss) for the years/ period or any other measure of financial performance or as an indicator of our operating performance, liquidity, profitability or cash flows generated by operating, investing or financing activities derived in accordance with Ind AS, Indian GAAP, IFRS or US GAAP. In addition, these Non-GAAP Measures are not standardised terms, hence a direct comparison of these Non-GAAP Measures between companies may not be possible. Other companies may calculate these Non-GAAP Measures differently from us, limiting its usefulness as a comparative measure. Although such Non-GAAP Measures are not a measure of performance calculated in accordance with applicable accounting standards, our Companys management believes that they are useful to an investor in evaluating us as they are widely used measures to evaluate a companys operating performance. For further information, see "Risk Factor no. 48 This Red Herring Prospectus includes certain Non-GAAP Measures, financial and operational performance indicators and other industry measures related to our operations and financial performance. The Non-GAAP Measures and industry measures may vary from any standard methodology that is applicable across the Real Estate segment and, therefore, may not be comparable with financial or industry related statistical information of similar nomenclature computed and presented by other companies." on page 69.
Reconciliation of Non-GAAP Measures
Reconciliation of Gross margin and gross margin (%)
Gross margin is calculated by deducting the cost of materials consumed and changes in inventories of finished goods and work-in-progress from revenue from operations. Gross margin (%) is calculated as gross margin divided by revenue from operations.
The following table sets out reconciliation between revenue from operations to Gross margin and Gross margin (%) for the years indicated.
( in lakhs, except percentages)
| Particulars | For the year ended March 31, 2026 | For the year ended March 31, 2025 | For the year ended March 31, 2024 |
| Revenue from Operations (A) | 25,097.62 | 19,237.53 | 11,076.76 |
| Less: Operating Cost (B) | 24,968.06 | 20,692.80 | 8,647.51 |
| Less: Changes in Inventories (C) | (6,882.97) | (6,757.60) | (764.34) |
| Gross Margin (D =A - B - C) | 7,012.53 | 5,302.33 | 3,193.59 |
| Gross Margin (%) (E = D/A)*100 | 27.94% | 27.56% | 28.83% |
Reconciliation of EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin
The table below reconciles profit after tax to EBITDA. EBITDA is calculated as profit/ (loss) before tax, plus depreciation and amortisation plus finance costs. EBITDA Margin is calculated as EBITDA divided by Total Income. Adjusted EBITDA is calculated as EBITDA plus finance cost component included in Operating Cost while Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by Total Income.
( in lakhs, except percentages)
| Particulars | For the year ended March 31, 2026 | For the year ended March 31, 2025 | For the year ended March 31, 2024 |
| Profit/(Loss) for the year (A) | 2,661.46 | 2,042.59 | 786.88 |
| Total income tax expense (B) | 958.87 | 783.93 | 335.89 |
| Finance costs (C) | 571.60 | 503.55 | 508.85 |
| Depreciation and amortization expense (D) | 72.29 | 47.28 | 40.61 |
| EBITDA (E) (E=A+B+C+D) | 4,264.22 | 3,377.35 | 1,672.23 |
| Total Income (F) | 25,415.95 | 19,621.88 | 11,461.38 |
| EBITDA Margin (%) (G) (G=E/F)*100 | 16.78 | 17.21 | 14.59 |
| Add: finance cost component included in Operating Cost (H) | 378.68 | 734.25 | 542.68 |
| Adjusted EBITDA (I) (I=E+H) | 4,642.90 | 4,111.60 | 2,214.91 |
| Adjusted EBITDA Margin (%) (J) (J=I/F)*100 | 18.27 | 20.95 | 19.32 |
Reconciliation of PAT Margin (%)
PAT Margin is calculated as profit (loss) for the year divided by total income.
The following table sets out a reconciliation from our Profit/(loss) for the year to PAT margin for the years indicated:
( in lakhs, except percentages)
| Particulars | For the year ended March 31, 2026 | For the year ended March 31, 2025 | For the year ended March 31, 2024 |
| Profit After Tax (A) | 2,661.46 | 2,042.59 | 786.88 |
| Total Income (B) | 25,415.95 | 19,621.88 | 11,461.38 |
| Particulars | For the year ended March 31, 2026 | For the year ended March 31, 2025 | For the year ended March 31, 2024 |
| PAT Margin (%) (C) (C=A/B) | 10.47% | 10.41% | 6.87% |
Fiscal 2024 to Fiscal 2025
PAT increased from 786.88 lakh in Fiscal 2024 to 2,042.59 lakh in Fiscal 2025, mainly due to:
Significant increase in Revenue from Operations from 11,076.76 lakh in Fiscal 2024 to 19,237.53 lakh in Fiscal 2025, driven by higher construction progress and revenue recognition in ongoing residential projects.
Reduction in inventory write-downs / inventory changes compared to Fiscal 2024, resulting in lower cost absorption.
The total expense to total income ratio improved, with total expenses declining from 90.20% of total income in Fiscal 2024 to 85.60% in Fiscal 2025, reflecting improved operating efficiency and operating leverage during Fiscal 2025.
Controlled finance costs as a percentage of income, despite increase in absolute borrowings, due to better project cash flows.
Fiscal 2025 to Fiscal 2026
PAT increased from 2,042.59 lakh in Fiscal 2025 to 2,661.46 lakh in Fiscal 2026, mainly due to:
Increase in Revenue from Operations from 19,237.53 lakh in Fiscal 2025 to 25,097.62 lakh in Fiscal
2026, primarily on account of higher construction progress and revenue recognition from ongoing residential projects in accordance with the percentage of completion method.
Higher contribution from ongoing residential projects, with revenue from ongoing projects increasing from 17,256.41 lakh in Fiscal 2025 to 24,758.49 lakh in Fiscal 2026, resulting in improved operating profitability despite lower revenue recognised from completed projects.
Improved operating leverage arising from the higher scale of operations, resulting in better absorption of fixed and administrative overheads over a larger revenue base.
Improved execution across key residential projects and a favourable project mix, which contributed to higher operating profitability notwithstanding the increase in employee benefit expenses, depreciation and other operating expenses required to support the expanded business operations.
Finance costs remained largely stable relative to the growth in operations, increasing only from 503.55 lakh in Fiscal 2025 to 571.60 lakh in Fiscal 2026 despite the increase in project activities, thereby supporting the overall increase in profitability.
The increase in profitability was primarily operational in nature, as the growth in PAT was driven by higher revenue and improved project execution despite a decline in Other Income from 384.35 lakh in Fiscal 2025 to 318.33 lakh in Fiscal 2026.
Reconciliation of Return on Equity (%)
Return on equity is calculated as Profit / (Loss) for the year divided by the average total equity at the end of the respective year. The following table sets out a reconciliation from our Profit/(Loss) for the year to Return on equity for the years indicated.
( in lakhs, except percentages)
| Particulars | For the year March 31, 2026 | For the year ended March 31, 2025 | For the year ended March 31, 2024 |
| Profit After Tax (A) | 2,661.46 | 2,042.59 | 786.88 |
| Opening total equity (B) | 6,544.39 | 4,507.10 | 3,723.97 |
| Closing total equity (C) | 26,690.02 | 6,544.39 | 4,507.10 |
| Average total equity (D)= (B+C)/2 | 16,617.21 | 5,525.75 | 4,115.54 |
| Return on equity (%) (A/D)*100 | 16.02% | 36.96% | 19.12% |
Reconciliation of Return on Capital Employed (%)
Return on Capital Employed is calculated as a percentage of earnings before interest and taxes / total equity minus Deferred Tax Assets/(Liabilities), intangible assets, Intangible Assets under development and plus total borrowings. EBIT is calculated as profit before tax plus finance costs.
The following table sets out a reconciliation from our Profit/(loss) before Tax for the year to Return on Capital employed for the years indicated:
( in lakhs, except percentages)
| Particulars | For the year ended March 31, 2026 | For the year ended March 31, 2025 | For the year ended March 31, 2024 |
| Profit Before Tax (A) | 3,620.33 | 2,826.52 | 1,122.77 |
| Add: Finance costs (B) | 571.60 | 503.55 | 508.85 |
| Earnings before interest, taxes (EBIT) (C = A + B) | 4,191.93 | 3,330.07 | 1,631.62 |
| Total Equity (D) | 26,690.02 | 6,544.39 | 4,507.10 |
| Less: Deferred Tax | (35.43) | 30.97 | (33.82) |
| Asset/(Liability)(E) | |||
| Less: Intangible Assets (F) | 4.32 | - | - |
| Less: Intangible Assets under development (G) | 25.52 | - | - |
| Add: Total Borrowings (H) | 8,558.90 | 17,696.99 | 12,022.65 |
| Total Capital Employed (I= D-E- F-G+H) | 35,254.51 | 24,210.41 | 16,563.57 |
| Return on Capital Employed (G = C/ I) | 11.89% | 13.75% | 9.85% |
Debt Service Coverage Ratio
The Companys Debt Service Coverage Ratio was 0.62 in Fiscal 2024, 1.31 in Fiscal 2025 and 0.18 in Fiscal 2026. These ratios reflect the project-based nature of the Companys borrowings and repayments in the residential real estate business. During these periods, the Companys borrowings largely comprised loans from Directors and related parties availed for funding specific projects. Upon achievement of construction milestones and receipt of customer collections, such loans were repaid, including substantial repayment of principal, and new borrowings were undertaken for new projects.
As a result, total debt servicing during these periods included significant principal repayments, which exceeded earnings available for debt service in the same period, leading to DSCR of below one. These repayments were made out of project inflows and not solely from operating profits of the respective periods.
Accordingly, the DSCR in these periods is reflective of the timing of project cash flows and repayment of project-level borrowings, and not indicative of any default in servicing debt obligations.
KEY COMPONENTS OF OUR RESTATED STATEMENT OF PROFIT AND LOSS
Income
Our total income comprises revenue from operations and other income.
We generate majority of our revenue from sales of projects which includes Revenue from completed projects and Revenue from ongoing projects.
Other income comprises of Interest Income, Provisions / Liabilities no longer payable written back, Finance Income on Security Deposit (Represents interest income from financial assets at amortised cost), Unwinding of Fair Valuation Gain, Commission received and other non-operating income such as sale of scrap and miscellaneous income.
Expenses
Our expenses primarily consist of operating costs, which include the purchase and development of land, construction materials, labour charges and other direct project-related expenses. In addition to these operating expenses, our cost structure also comprises changes in inventories, employee benefits expense, finance costs, depreciation and amortization expense, and various other administrative and operational expenses that are allocated to support our overall business activities.
Operating Cost
Operating Costs Primarily includes the purchase and development of land, construction materials, labour charges and other direct project-related expenses.
Changes in inventories
Changes in inventories primarily represent the movement in the value of our project-related inventories between the beginning and end of the reporting period. For our business, inventories mainly comprise land held for project development, stock of units in completed projects, and projects work-in-progress ("WIP"). The "Changes in inventories" line item reflects the net increase or decrease in these categories and impacts our cost of goods sold for the period.
Employee benefit expense
Employee benefit expenses primarily comprise salaries and wages, contributions to provident fund and other employee benefit schemes, gratuity, compensated absences, and staff welfare expenses. Further, any portion of employee benefit costs that is specifically attributable to project execution activities is allocated to the projects and is deducted from employee benefit expenses and shifted to operating expenses.
Finance costs
Finance costs include interest on term loan, unsecured loan, HP loan, overdraft, Vehicle loan, and other borrowing costs. Finance cost on project loans directly attributable to projects are deducted from Finance Costs and allocated to Operating Costs.
Depreciation and Amortization Expense
Depreciation and amortization expense primarily include depreciation on building, plant & Machinery, vehicles, computers, furniture & fixtures, office equipments, electrical fittings, and depreciation on intangible assets such as trademark and computer software.
Other Expenses
The largest components of other expenses are advertisement expenses, Legal & professional expenses, Rates & taxes and rent expenses. Other components of other expenses include Project maintenance expense, repairs to buildings, repairs to machinery, repairs others, Software maintenance expense, Amortisation of Financial asset, Payment to auditors, travelling and conveyance expenses, office expense, loss on disposal/discarding of assets, corporate social responsibilities and donations, provision for doubtful debts, provision for land advance and miscellaneous expenses. Other expenses directly attributable to projects are deducted and allocated to Operating Costs.
Tax expenses
Tax expense consists of current tax and deferred tax (credit) / charge.
Profit for the Year
Profit for the year represents profit after tax.
RESULTS OF OPERATIONS
The following table provides certain information with respect to our results of operations for the Fiscal 2026, Fiscal 2025 and Fiscal 2024 from our Restated Financial Information and each item as a percentage of total income for the periods indicated.
( in lakh, unless otherwise stated)
| Particulars | Fiscal 2026 | % of Total Income | Fiscal 2025 | % of Total Income | Fiscal 2024 | % of Total Income |
| Revenue from | 25,097.62 | 98.75 | 19,237.53 | 98.04 | 11,076.76 | 96.64 |
| Operation | ||||||
| Other Income | 318.33 | 1.25 | 384.35 | 1.96 | 384.62 | 3.36 |
| Total Revenue | 25,415.95 | 100.00 | 19,621.88 | 100.00 | 11,461.38 | 100.00 |
| Operating Cost | 24,968.06 | 98.24 | 20,692.80 | 105.46 | 8,647.51 | 75.45 |
| Changes in inventories | (6,882.97) | (27.08) | (6,757.60) | (34.44) | (764.34) | (6.67) |
| Employee | 766.38 | 3.02 | 594.02 | 3.03 | 450.96 | 3.93 |
| Benefits | ||||||
| Expenses | ||||||
| Finance Cost | 571.60 | 2.25 | 503.55 | 2.57 | 508.85 | 4.44 |
| Depreciation and | 72.29 | 0.28 | 47.28 | 0.24 | 40.61 | 0.35 |
| Amortisation expenses | ||||||
| Other Expenses | 2,300.26 | 9.05 | 1,715.31 | 8.74 | 1,455.02 | 12.69 |
| Total Expenses | 21,795.62 | 85.76 | 16,795.36 | 85.60 | 10,338.61 | 90.20 |
| Profit Before | 3,620.33 | 14.24 | 2,826.52 | 14.40 | 1,122.77 | 9.80 |
| Tax | ||||||
| Tax Expenses | 958.87 | 3.77 | 783.93 | 4.00 | 335.89 | 2.93 |
| Current Tax | 887.14 | 3.49 | 846.93 | 4.32 | 348.25 | 3.04 |
| Deferred Tax | 71.73 | 0.28 | (63.00) | (0.32) | (12.36) | (0.11) |
| Profit (Loss) for the Year | 2,661.46 | 10.47 | 2,042.59 | 10.41 | 786.88 | 6.87 |
Fiscal 2026
Total income
Our Total Income increased by 29.53% from 19,621.88 lakh in Fiscal 2025 to 25,415.95 lakh in Fiscal 2026, primarily due to an increase in our Revenue from Operations, partially offset by a decrease in Other Income.
Revenue from operations
Our Revenue from Operations increased by 30.46%, from 19,237.53 lakh in Fiscal 2025 to 25,097.62 lakh in
Fiscal 2026.
The increase was primarily attributable to higher construction progress and revenue recognition from our ongoing residential projects under the Percentage of Completion Method (POCM). Revenue from ongoing projects increased from 17,256.41 lakh in Fiscal 2025 to 24,758.49 lakh in Fiscal 2026, reflecting continued execution across the Companys residential portfolio and improved customer collections linked to construction milestones. During Fiscal 2026, the Company launched four new projects, Casabella, Flora, Serene and Lluvia Garden, which contributed 5,999.95 lakhs to our revenues. In addition, our existing projects, Symphony, Springbell and Elanza, witnessed enhanced customer traction and improved sales conversions, thereby contributing meaningfully to the overall growth in revenue from Ongoing Projects.
Revenue from Completed projects, however, declined significantly from 1,981.12 lakh in Fiscal 2025 to 339.13 lakh in Fiscal 2026 due to lower inventory available for sale in Completed projects as a majority of the completed inventory had already been sold in earlier years.
Overall, the increase in revenue during Fiscal 2026 reflects continued progress in construction activities, sustained customer demand for the Companys Ongoing residential projects and higher revenue recognition from projects under development.
Project wise revenue for the Fiscal 2026 and Fiscal 2025 is as mentioned below:
( in lakh)
| Projects | Status for Revenue Recognition for the Fiscal 2026 | Revenue recognised for Fiscal 2026 | Status for Revenue Recognition for the Fiscal 2025 | Revenue recognised for Fiscal 2025 |
| Bliss | Completed | - | Completed | 144.50 |
| Exotica | Completed | - | Completed | 360.44 |
| Kings Fort | Completed | 113.00 | Completed | 110.00 |
| Thejus | Completed | 219.75 | Completed | 933.18 |
| Zinnia | Completed | - | Completed | 108.00 |
| Green Clouds | Completed | - | Completed | 325.00 |
| Springbell | Completed | 6.38 | Ongoing | 4,030.44 |
| Elanza | Ongoing | 2,174.11 | Ongoing | 825.75 |
| Symphony | Ongoing | 2,596.47 | Ongoing | 1,873.85 |
| Green Capitol | Ongoing | 3,478.06 | Ongoing | 2,447.05 |
| Maybell | Ongoing | 2,230.79 | Ongoing | 2,229.63 |
| Green Heights | Ongoing | 5,213.07 | Ongoing | 4,176.91 |
| Green Fort | Ongoing | 1,894.35 | Ongoing | 766.49 |
| Queens Park | Ongoing | 1,171.68 | Ongoing | 906.28 |
| Serene | Ongoing | 710.84 | NA | NA |
| Lluvia Garden | Ongoing | 897.32 | NA | NA |
| Casabella | Ongoing | 2,898.29 | NA | NA |
| Flora | Ongoing | 1,493.50 | NA | NA |
| Total | 25,097.62 | 19,237.53 |
Other Income
Other Income decreased by 17.18% from 384.35 lakh in Fiscal 2025 to 318.33 lakh in Fiscal 2026.
The decrease was primarily attributable to a significant reduction in provisions and liabilities no longer payable written back, which declined from 160.26 lakh in Fiscal 2025 to 3.11 lakh in Fiscal 2026, indicating one-time non-operating credits in Fiscal 2025 which did not recur during Fiscal 2026.
The decline was partially offset by an increase in interest income, which increased from 111.09 lakh to 129.46 lakh, primarily on account of escrow accounts funds being invested in fixed Deposits vide circular bearing no 102/3/2020/KRERA. Further, unwinding of fair valuation gains increased from 76.12 lakh in Fiscal 2025 to 103.75 lakh in Fiscal 2026 in accordance with the Companys accounting policy under Ind AS. Other non-operating income also increased from 12.99 lakh to 57.68 lakh, partially mitigating the overall reduction in other income.
Accordingly, despite the decline in other income, the Companys overall profitability improved during Fiscal 2026, demonstrating that the increase in earnings was predominantly driven by its core operating performance rather than non-operating income.
Operating Cost
Operating Cost increased by 20.66% from 20,692.80 lakh in Fiscal 2025 to 24,968.06 lakh in Fiscal 2026.
The increase was primarily attributable to the higher scale of construction activities undertaken during the year and increased project execution across the Companys ongoing residential projects.
Purchase and development of land increased from 9,368.75 lakh in Fiscal 2025 to 11,837.81 lakh in Fiscal 2026, reflecting acquisition and development expenditure incurred for existing and new residential projects.
Construction materials, labour and direct expenses increased from 10,265.65 lakh in Fiscal 2025 to 12,350.39 lakh in Fiscal 2026 due to higher construction activity, increased procurement of construction materials, engagement of contractors and labour and overall progress achieved across multiple ongoing projects. Allocated employee benefit expenses capitalised to projects increased from 308.78 lakh in Fiscal 2025 to 382.70 lakh in Fiscal 2026, reflecting deployment of additional engineering, project management and site personnel directly attributable to project execution.
Finance costs capitalised to qualifying assets decreased from 734.25 lakh in Fiscal 2025 to 378.68 lakh in Fiscal
2026. The decrease was primarily attributable to the repayment of loans from promoters that had been utilised for financing the Companys projects. During Fiscal 2026, the Company availed fresh borrowings primarily for financing newly launched projects, and accordingly, the amount of borrowing costs eligible for capitalisation in respect of such projects was lower as compared to the preceding fiscal..
Other project-related expenses capitalised also increased marginally from 15.37 lakh in Fiscal 2025 to 18.48 lakh in Fiscal 2026, reflecting higher project administration expenses.
Overall, the increase in operating cost remained proportionate to the increase in revenue from operations and was consistent with the increased level of project execution during Fiscal 2026.
Changes in inventories
Changes in inventories recorded a net increase in inventories which increased from 6,757.60 lakh in Fiscal 2025 to 6,882.97 lakh in Fiscal 2026.
The increase primarily reflects movement in inventories of land held for project construction, work-in-progress and completed residential units consequent to the Companys construction activities and revenue recognised under the Percentage of Completion Method.
Inventory relating to land held for project construction increased from 9,368.75 lakh as at March 31, 2025 to 12,929.87 lakh as at March 31, 2026, reflecting continued investment in land development and project expansion.
Project work-in-progress also increased from 12,326.00 lakh as at March 31, 2025 to 15,866.97 lakh as at March 31, 2026 owing to higher expenditure incurred on ongoing projects that had not yet reached the stage of revenue recognition as at the reporting date.
At the same time, inventory of completed residential units reduced from 219.12 lakh as at March 31, 2025 to Nil as at March 31, 2026, indicating that substantially all completed inventory available at the beginning of the year had been sold during Fiscal 2026.
Accordingly, the movement in inventories reflects continued project execution, increased investment in ongoing residential developments and conversion of completed inventory into revenue during the year.
Employee Benefit Expenses
Employee benefit expenses increased by 29.02% from 594.02 lakh in Fiscal 2025 to 766.38 lakh in Fiscal 2026 primarily attributable to the growth in the Companys employee strength during the year. The total number of employees increased from 72 as at March 31, 2025 to 107 as at March 31, 2026, representing an increase of approximately 48.6%. The increase in employee strength was in line with the growth in the Companys business operations, with Revenue from Operations increasing from 19,237.53 lakhs in Fiscal 2025 to 25,097.62 lakhs in Fiscal 2026. During Fiscal 2026, the Company strengthened its engineering, project management, sales, marketing and administrative functions to support the execution of multiple ongoing residential projects and future business growth.
Salaries, wages and bonus continued to constitute the largest component of employee benefit expenses and increased in line with the higher employee headcount and annual remuneration revisions. Contributions towards provident fund and other employee welfare expenses also increased correspondingly.
Further, employee costs directly attributable to project execution amounting to 382.70 lakh were capitalised as part of project costs during Fiscal 2026 as compared to 308.78 lakh during Fiscal 2025. The increase in capitalised employee costs reflects greater deployment of technical and site personnel on construction activities. Notwithstanding such capitalisation, employee benefit expenses recognised in the Statement of Profit and Loss increased due to the expansion of the Companys corporate and operational functions.
Employee benefit expenses represented 3.02% of Total Income during Fiscal 2026 as compared to 3.03% during Fiscal 2025, indicating that employee costs remained stable relative to the growth in business operations and demonstrating improved operating leverage.
Finance Cost
Finance costs increased by 13.51% from 503.55 lakh in Fiscal 2025 to 571.60 lakh in Fiscal 2026.
The increase was primarily attributable to borrowings utilised for funding Ongoing residential projects and working capital requirements associated with higher construction activities during the year.
However, finance costs increased at a substantially lower rate than revenue from operations. Consequently, finance costs as a percentage of Total Income declined from 2.57% in Fiscal 2025 to 2.25% in Fiscal 2026, reflecting efficient utilisation and management of borrowings despite the expansion in project execution.
Finance costs capitalised to qualifying assets decreased from 734.25 lakh in Fiscal 2025 to 378.68 lakh in Fiscal
2026. The decrease was primarily attributable to the repayment of loans from promoters that had been utilised for financing the Companys projects. During Fiscal 2026, the Company availed fresh borrowings primarily for financing newly launched projects, and accordingly, the amount of borrowing costs eligible for capitalisation in respect of such projects was lower as compared to the preceding fiscal..
Overall, the Companys financing structure remained efficient and supported the increase in project execution without a proportionate increase in finance costs recognised in the Statement of Profit and Loss.
Depreciation and Amortisation Cost
Depreciation and amortisation expense increased by 52.90% from 47.28 lakh in Fiscal 2025 to 72.29 lakh in Fiscal 2026.
The increase was primarily attributable to additions to property, plant and equipment, office infrastructure, information technology assets and other operational assets acquired to support the Companys expanding business operations and project execution activities.
The increase in depreciation expense is consistent with the Companys continued investment in operational infrastructure required to support the growth in its business and is not significant in relation to the increase in total income.
Other Expenses
Other expenses increased by 34.10% from 1,715.31 lakh in Fiscal 2025 to 2,300.26 lakh in Fiscal 2026.
The increase was primarily attributable to higher selling, marketing, administrative and project support expenses incurred consequent to the expansion in business operations and increased execution of residential projects.
Advertisement and sales promotion expenses increased from 1,331.20 lakh in Fiscal 2025 to 1,551.29 lakh in Fiscal 2026, reflecting increased marketing initiatives undertaken for ongoing and newly launched residential projects and continued efforts to strengthen customer acquisition.
Legal and professional charges increased significantly from 38.43 lakh in Fiscal 2025 to 172.17 lakh in Fiscal 2026. The increase was primarily attributable to higher professional fees incurred in connection with business expansion, legal compliances, corporate advisory services and other professional engagements associated with the Companys growing scale of operations.
Software maintenance, information technology support expenses, office maintenance and other administrative expenses also increased during Fiscal 2026 due to the strengthening of operational infrastructure and digital systems required to support larger project execution and organisational growth. Travelling, communication, electricity, repairs and maintenance and other office-related expenses increased in line with the higher level of construction activity, increased employee strength and expansion of the Companys operational footprint.
Despite the increase in absolute expenditure, other expenses remained broadly aligned with the overall increase in revenue and reflected the Companys continued investment in strengthening its sales, operational and administrative capabilities.
Tax Expense
Tax expense increased from 783.93 lakh in Fiscal 2025 to 958.87 lakh in Fiscal 2026.
Current tax increased from 846.93 lakh in Fiscal 2025 to 887.14 lakh in Fiscal 2026, primarily due to the increase in taxable profits during the year.
Deferred tax, which represented a credit of 63.00 lakh in Fiscal 2025, changed to a deferred tax expense of 71.73 lakh in Fiscal 2026. The movement was primarily attributable to temporary timing differences relating to depreciation, project costs and other items recognised under the applicable provisions of the Income Tax Act, 2025 and Indian Accounting Standards.
Accordingly, the overall increase in tax expense was consistent with the Companys improved profitability during Fiscal 2026.
Profit (Loss) for the Year
As a result of the foregoing factors, our profit after tax increased by 30.30% from 2,042.59 lakh in Fiscal 2025 to 2,661.46 lakh in Fiscal 2026.
The increase in profit after tax was principally driven by the 30.46% growth in revenue from operations arising from higher construction progress and revenue recognition from ongoing residential projects under the Percentage of Completion Method. The increase was further supported by improved operating leverage, efficient management of finance costs and continued focus on cost optimisation.
The increase assumes greater significance considering that other income declined by 17.18% during the year, primarily due to a substantial reduction in one-time write-back of provisions and liabilities. Accordingly, the improvement in profitability was predominantly attributable to the Companys core real estate development operations rather than non-operating or exceptional items.
FISCAL 2025 COMPARED TO FISCAL 2024
Total Income
Our Total Income increased by 71.20% from 11,461.38 lakh in Fiscal 2024 to 19,621.88 lakh in Fiscal 2025, primarily due to an increase in our revenue from operations.
Revenue from operations
Our Revenue from Operations increased by 73.67%, from 11,076.76 lakh in Fiscal 2024 to 19,237.53 lakh in
Fiscal 2025. This growth was primarily driven by a significant increase in sales from our ongoing projects, which rose by 184.62%, from 6,062.91 lakh in Fiscal 2024 to 17,256.41 lakh in Fiscal 2025. The strong performance in Fiscal 2025 was attributable to both the launch of new projects and improved sales momentum in select ongoing developments.
During Fiscal 2025, the Company launched one new project, Queens Park, which contributed 906.28 lakh, to our revenues. In addition, our existing projects, Symphony, Springbell, Elanza, Green Capitol, Maybell, Green Heights and Green Fort, witnessed enhanced customer traction and improved sales conversions, thereby contributing meaningfully to the overall growth in revenue from ongoing projects.
( in lakh)
| Projects | Status for Revenue Recognition for the Fiscal 2025 | Revenue recognised for Fiscal 2025 | Status for Revenue Recognition for the Fiscal 2024 | Revenue recognised for Fiscal 2024 |
| Bliss | Completed | 144.50 | Completed | 58.33 |
| Exotica | Completed | 360.44 | Completed | 1,234.52 |
| Kings Fort | Completed | 110.00 | Completed | 403.87 |
| Thejus | Completed | 933.18 | Completed | 2,988.82 |
| Zinnia | Completed | 108.00 | Completed | 328.31 |
| Green Clouds | Completed | 325.00 | Completed | - |
| Springbell | Ongoing | 4,030.44 | Ongoing | 3,569.19 |
| Elanza | Ongoing | 825.75 | Ongoing | 415.55 |
| Symphony | Ongoing | 1,873.85 | Ongoing | - |
| Green Capitol | Ongoing | 2,447.05 | Ongoing | 597.64 |
| Maybell | Ongoing | 2,229.63 | Ongoing | 775.85 |
| Green Heights | Ongoing | 4,176.91 | Ongoing | 693.13 |
| Green Fort | Ongoing | 766.49 | Ongoing | 11.55 |
| Queens Park | Ongoing | 906.28 | Ongoing | - |
| Total | 19,237.53 | 11,076.76 |
Revenue from completed projects, however, decreased by 60.49%, from 5,013.85 lakh in Fiscal 2024 to 1,981.12 lakh in Fiscal 2025. This decline was primarily due to the lower availability of inventory in completed projects, as a substantial portion of units had already been sold in prior years, resulting in limited stock available for sale for Completed Projects during Fiscal 2025.
Overall, the growth in Fiscal 2025 reflects the successful launch of new projects, strong demand for our ongoing developments, and the sustained market acceptance of our brand and project offerings.
Other Income
Other Income was 384.35 lakh in Fiscal 2025, broadly consistent with 384.62 lakh in Fiscal 2024. Although the aggregate amount remained largely stable, the composition of other income changed during the year.
In Fiscal 2025, other income primarily comprised interest income of 111.09 lakh, unwinding of fair valuation gain of 76.12 lakh, finance income on security deposits of 13.41 lakh, commission received of 10.48 lakh, and other non-operating income of 12.99 lakh. A significant contributor during the year was 160.26 lakh arising from provisions/liabilities no longer payable written back, which increased the total other income for Fiscal 2025.,
In comparison, other income for Fiscal 2024 included interest income of 233.64 lakh, unwinding of fair valuation gain of 64.70 lakh, finance income on security deposits of 12.38 lakh, commission received of 4.41 lakh, other non-operating income of 8.31 lakh, and 61.18 lakh from provisions/liabilities no longer payable written back.
The year-on-year variation in the components of other income is primarily attributable to lower interest income in Fiscal 2025 due to the utilisation of surplus funds for project development and land acquisition, offset by a higher write-back of provisions/liabilities during the year.
Operating Cost
Operating Cost increased significantly from 8,647.51 lakh in Fiscal 2024 to 20,692.80 lakh in Fiscal 2025, primarily due to higher project execution activity and increased land development expenditure during the year. Expenses incurred directly during the year rose to 19,634.40 lakh in Fiscal 2025, compared to 7,816.96 lakh in Fiscal 2024, driven by an increase in purchase/development of land, which grew from 1,025.31 lakh to 9,368.75 lakh, and higher construction materials, labour and direct expenses, which increased from 6,791.65 lakh to 10,265.65 lakh. The substantial increase reflects the commencement and scaling up of multiple projects, as well as enhanced construction intensity across ongoing developments.
Allocated expenses also increased during Fiscal 2025 due to higher resource utilisation for project execution.
Employee benefit expenses allocated to projects increased from 276.02 lakh in Fiscal 2024 to 308.78 lakh in
Fiscal 2025, reflecting higher staffing and project management involvement. Finance costs allocated rose from
542.68 lakh to 734.25 lakh, attributable to increased borrowing costs eligible for capitalisation in line with the growth in project development activity. Other expenses allocated to projects also increased from 11.85 lakh in Fiscal 2024 to 15.37 lakh in Fiscal 2025.
Overall, the rise in operating cost in Fiscal 2025 corresponds to the expansion of our project portfolio, commencement of new projects, and higher construction and development intensity across our ongoing projects.
Changes in inventories
Changes in inventories reflect movements in land held for project construction, stock of completed units, and projects work-in-progress ("WIP"), and are directly influenced by the pace of project execution and corresponding operating costs incurred during the year. For Fiscal 2025, the Company reported a net increase in inventories of
6,757.60 lakh, compared to a net increase of 764.34 lakh in Fiscal 2024.
The significant inventory build-up in Fiscal 2025 was mainly attributable to higher development activity and land-related capitalisation, consistent with the substantial increase in operating costs during the year (from 8,647.51 lakh in Fiscal 2024 to 20,692.80 lakh in Fiscal 2025). Land inventory increased by 8,343.44 lakh in Fiscal 2025, driven by additional land acquisition and development expenditure. WIP inventory also decreased by 208.82 lakh, reflecting the capitalisation of construction materials, labour and direct project-related expenses incurred during the year. Conversely, stock of completed units decreased by 1,377.02 lakh, owing to sales of completed inventory during the period.
The overall increase in inventories during Fiscal 2025 is therefore aligned with the Companys higher construction momentum, expansion of its project portfolio and increased capitalisation of project-related costs. As operating cost rises due to enhanced development activity, a corresponding increase in inventories is recognised until such time as units are completed and revenue is booked.
Employee Benefit Expenses
Employee benefit expenses increased from 726.98 lakh in Fiscal 2024 to 902.80 lakh in Fiscal 2025, reflecting the expansion of our operational scale and higher staffing requirements to support our growing project portfolio. The increase was primarily driven by higher salaries and wages, which rose from 659.19 lakh in Fiscal 2024 to 802.10 lakh in Fiscal 2025, on account of additional recruitment and annual increments. Staff welfare expenses also increased from 24.31 lakh to 45.40 lakh, while gratuity and compensated absences expenses rose in line with statutory provisions and actuarial valuations.
Employee benefit expenses directly attributable to project execution are allocated to the respective projects. The amount allocated increased from 276.02 lakh in Fiscal 2024 to 308.78 lakh in Fiscal 2025, consistent with the higher level of construction activity during the year. As a result, net employee benefit expenses recognised in the
Restated Statement of Profit and Loss were 594.02 lakh in Fiscal 2025, compared to 450.96 lakh in Fiscal 2024.
The increase in employee benefit expenses is primarily attributable to the growth in the Companys employee strength. The total number of employees increased from 64 as at March 31, 2024 to 72 as at March 31, 2025, representing an increase of approximately 12.5%.
Further, employee benefit expenses also increased due to higher performance-linked and marketing incentive payouts, particularly to sales and marketing personnel, which rose in line with the growth in the Companys sales during the relevant period. These factors along with salary increments provided to employees for the Fiscal primarily contributed to the increase in employee benefit expenses.
The overall increase in employee benefit expenses is aligned with the Companys operational growth, enhanced project execution requirements and strengthening of its organisational capabilities.
Finance Cost
Finance costs increased from 1,051.53 lakh in Fiscal 2024 to 1,237.80 lakh in Fiscal 2025, primarily due to higher utilisation of borrowings to support project development and land acquisition initiatives. Interest expense rose from 970.35 lakh in Fiscal 2024 to 1,140.63 lakh in Fiscal 2025, reflecting both the increase in debt levels and the timing of interest accruals. Other finance costs, which mainly comprise interest recognised on instruments measured at amortised cost, also increased from 81.18 lakh to 97.17 lakh during the same period.
Borrowing costs directly attributable to the acquisition or construction of qualifying assets are capitalised to the respective projects or land. Accordingly, the amount of finance costs allocated increased from 542.68 lakh in Fiscal 2024 to 734.25 lakh in Fiscal 2025, consistent with the growth in project execution and capitalisation of borrowing costs. After such allocations, the net finance cost recognised in the Restated Statement of Profit and
Loss was 503.55 lakh in Fiscal 2025, marginally lower compared to 508.85 lakh in Fiscal 2024.
The movement in finance costs reflects the Companys project-driven capital requirements, increased development activity, and corresponding capitalisation of eligible borrowing costs.
Depreciation and Amortisation Cost
Depreciation and amortisation expenses increased from 40.61 lakh in Fiscal 2024 to 47.28 lakh in Fiscal 2025, primarily due to additions to property, plant and equipment used for administrative and project management functions. Depreciation on property, plant and equipment accounted for 47.28 lakh in Fiscal 2025, compared to 40.61 lakh in Fiscal 2024. Overall, the movement in depreciation and amortisation expenses reflects normal wear-and-tear of assets and incremental capital expenditure undertaken to support the Companys expanding operations.
Other Expenses
Other expenses increased from 1,466.87 lakh in Fiscal 2024 to 1,730.68 lakh in Fiscal 2025, primarily due to higher marketing, professional and administrative outlays incurred to support the Companys project expansion and operational scale-up. The largest component, advertisement expenses, rose from 881.47 lakh in Fiscal 2024 to 1,331.20 lakh in Fiscal 2025, reflecting intensified promotional activities for newly launched and ongoing projects. Legal and professional fees increased significantly from 16.95 lakh to 38.43 lakh, driven by higher engagements relating to regulatory, advisory and project documentation matters.
Further, rates and taxes decreased from 2.67 lakh in Fiscal 2024 to 1.34 lakh in Fiscal 2025, while office expenses increased from 35.31 lakh in Fiscal 2024 to 44.75 lakh in Fiscal 2025, consistent with the expansion of business operations. Software maintenance expenses also rose from 7.38 lakh in Fiscal 2024 to 14.33 lakh in Fiscal 2025, reflecting investments in technology and systems required to support the Companys growing operations. Certain expenses such as payment to auditors, CSR expenditure, and miscellaneous expenses also recorded higher outflows compared to the previous year.
In accordance with applicable accounting standards, expenses directly attributable to project activities are allocated to the respective projects. The amount allocated to projects increased slightly from 11.85 lakh in Fiscal 2024 to 15.37 lakh in Fiscal 2025, resulting in net other expenses of 1,715.31 lakh being recognised in the Restated Statement of Profit and Loss for Fiscal 2025, compared to 1,455.02 lakh in Fiscal 2024.
The overall increase in other expenses is aligned with the Companys heightened project development activity, enhanced brand-building efforts, and strengthening of operational and administrative functions during Fiscal 2025.
Tax Expense
Tax expense recognised in the Restated Statement of Profit & Loss increased from 334.63 lakh in Fiscal 2024 to 782.14 lakh in Fiscal 2025, primarily reflecting impact of transition to IndAS and the higher profitability recorded during the year. Current tax increased from 348.25 lakh in Fiscal 2024 to 846.93 lakh in Fiscal 2025, in line with the growth in taxable income. Deferred tax, however, moved from a credit of 12.36 lakh in Fiscal 2024 to a credit of 63.00 lakh in Fiscal 2025, mainly due to timing differences arising from depreciation, fair valuation adjustments and provisions.
In addition, income tax recognised in Other Comprehensive Income, relating to the remeasurement of defined benefit obligations, resulted in a deferred tax credit of 1.26 lakh in Fiscal 2024 and 1.79 lakh in Fiscal 2025.
The overall increase in tax expense in Fiscal 2025 corresponds to the improved operating performance of the Company, resulting in a higher tax base and related deferred tax adjustments.
Profit (Loss) for the Year
As a result of foregoing factors, the profit after tax of our Company increased from 786.88 lakh in Fiscal 2024 to 2,042.59 lakh in Fiscal 2025. The increase was 159.58% in Fiscal 2025 as compared to Fiscal 2024.
LIQUIDITY AND CAPITAL RESOURCES
We have historically financed the expansion of our business and operations primarily through the funds generated from our operations and debt financing. From time to time, we may obtain loan facilities to finance our short term working capital requirements and business operations.
Cash Flows
The following table sets forth certain information relating to our cash flows under Ind AS for the Fiscal 2026, Fiscal 2025 and Fiscal 2024:
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