Sobha Limited — Call Transcript 2025

Jul 30, 2025

Date: July 30, 2025

BSE Limited Department of Corporate Services PJ Towers, Dalal Street Mumbai – 400 001 Scrip Code: 532784	The National Stock Exchange of India Limited Exchange Plaza, Plot No C/1, G Block Bandra Kurla Complex Mumbai – 400 051 Scrip Code: SOBHA

Dear Sir/Madam(s),

Sub: Transcript of Annual General Meeting

Please find enclosed herewith the transcript of the 30[th] Annual General Meeting held on Thursday, the 24[th] day of July 2025.

This will also be hosted on the Company’s website, at www.sobha.com

This is for your information and records.

Yours sincerely,

FOR SOBHA LIMITED

Bijan Kumar Digitally signed by Bijan Kumar Dash Dash Date: 2025.07.30 14:53:33 +05'30' Bijan Kumar Dash Company Secretary & Compliance Officer Membership No. ACS 17222

SOBHA LIMITED

Regd & Corporate Office: SOBHA Limited, Sarjapur - Marathahalli, Outer Ring Road (ORR), Devarabisanahalli, Bellandur Post, Bengaluru - 560103, Karnataka, India. CIN: L45201KA1995PLC018475 | Tel: +91 80 49320000 | www.sobha.com | Email: investors@sobha.com

SOBHA LIMITED

TRANSCRIPT OF THE 30[TH] ANNUAL GENERAL MEETING OF SOBHA LIMITED HELD AT 3.00 P.M. IST ON THURSDAY, JULY 24, 2025, THROUGH VIDEO CONFERENCING

Ravi PNC Menon - Chairman:

Good afternoon Everyone. On behalf of our Board of Directors, I welcome the members to the 30th Annual General Meeting. This meeting is being held through a video conference in accordance with the circulars issued by the Ministry of Corporate Affairs and SEBI. We have the requisite quorum present through video conference to conduct the proceedings of this meeting. Participation of members through video conference is being reckoned for the purpose of quorum as per the circular issued by the MCA and Section 103 of the Companies Act, 2013. The quorum being present, I call this meeting to order.

Before we start the proceedings of the meeting, I would like to introduce the Board Members to all of you.

1. Mr. Jagadish Nangineni, Managing Director, present in person along with me, at the registered office, Bengaluru.

2. Ms. Srivathsala K N, Independent Woman Director and Chairperson of the Stakeholders Relationship Committee and Corporate Social Responsibility Committee, Present through VC

3. Mr. Raman Mangalorkar, Independent Director and Chairman of the Audit Committee and Nomination, Remuneration & Governance Committee, present through VC

4. Mr. Subba Rao Amarthaluru, Independent Director and Chairman of Risk Management Committee, present through VC.

5. Mr. Gopal Bhimrao Hosur, Independent Director, attending the meeting through VC

6. Mr. Nisanth M N, Deputy Managing Director, attending the meeting through VC

In addition, Yogesh Bansal, Chief Financial Officer and Bijan Kumar Dash, Company Secretary & Compliance Officer are also present at this meeting and attending from the Registered office, Bengaluru. Mr. Manish Agrawal, Partner, Walkar Chandiok & Co. LLP, Statutory Auditor, Mr. Surendra Patel, Director, Walkar Chandiok & Co. LLP, Statutory Auditor and Mr. Nagendra D Rao, Secretarial Auditor and Scrutinizer for conducting the e-voting are also present at the meeting.

My statement is included in the Annual Report of the Company which has been circulated to the members of the Company.

I, now, request Bijan Kumar Dash, Company Secretary and Compliance Officer to provide general instructions to members regarding participation in this Annual General Meeting.

Bijan Kumar Dash:

Thank you, Sir. Good afternoon everyone.

• Members may note that this Annual General Meeting is being held through video conferencing in accordance with the Companies Act, 2013 and circulars issued by the Ministry of Corporate Affairs and SEBI. The facility for attending this meeting, through video conference or other audio-visual means, is made available for the members on a first-come, first serve basis

• All of us are remotely connected to this meeting. Hence, in case if any Director/panellist is disconnected due to any technical glitches or otherwise, we will try to resolve it at the earliest and if not, meeting will be continued with other Board members.

• Soft copies of the annual report have been sent to all the shareholders whose emails ids are registered with the Depositories/Company. Hard Copies of the Annual Report were sent to those members at their registered address (as per the data downloaded from the depositories) who had requested for the same.

• Company has published an advertisement in the newspapers (Business Line- nationwide English newspaper and Prajavani-Kannada newspaper) on the matter pertaining to the AGM on 03[rd] July, 2025.

• The statutory registers and all other documents referred to in the Notice are available for inspection by Members.

• The Company had availed e-voting facility from MUFG Intime India Private Limited for the AGM in compliance with the provisions of the Companies Act, 2013 and Listing Regulations. Mr. Nagendra D Rao, Practising Company Secretary is the Scrutinizer for conducting the e- voting process.

• The Company had announced July 17, 2025 as the cut-off date for voting. The e-Voting began on July 21, 2025 at 09:00 A.M. and concluded on July 23, 2025 at 05:00 P.M.

• Those Members, who are present in the AGM through VC / OAVM facility and have not casted their vote on the Resolutions through remote e-Voting and are otherwise not barred from doing so, shall be eligible to vote through e-Voting system during the AGM and 30 minutes after the conclusion of the AGM.

• The results of the e-Voting will be announced within 48 hours of the conclusion of the AGM, i.e. on or before 3.00 p.m., Saturday, July 26, 2025.

• The Company has received requests from few members to register as speakers at this meeting. Accordingly, the floor will be open for these members to ask questions or express their views. We will facilitate this session once the Chairman opens the floor for questions and answers. Those Members who have registered themselves as a speaker will only be allowed to express their views/ask questions during the AGM. The Company reserves the right to restrict the number of speakers depending on the availability of time for the AGM. The shareholders may send their questions to the Company during and after the meeting also. Thank you.

Ravi PNC Menon - Chairman

Before we discuss the agenda items, I request Mr. Jagadish Nangineni, Managing Director of the Company, to brief the shareholders on the operations of the Company for the year ended 31st March 2025.

Jagadish Nangineni:

Thank you, Chairman.

It is a privilege to address you today at the 30th Annual General Meeting of Sobha Limited. This year marks a meaningful milestone, thirty years since your company was founded, another landmark in the illustrious timeline of Sobha. I extend my sincere gratitude to our shareholders, the Board members, our associates, external stakeholders, and every Sobhaite who has played a role in shaping the company’s journey to this point.

Being at the juncture of thirty years, it is a moment that invites both reflection and renewed resolve. As we honour this legacy, our focus remains on building forward with clarity and conviction. In this milestone year, we stayed the course—committed to building with focus on world class quality & consistency, governed by discipline, and guided by a long-term view. FY 2024–25 was another demonstration of that approach in action.

After COVID, which unfortunately came into our lives more than five years ago, your company has resolved to become financially stronger to weather any kind of externalities and industry cycles. It is that resolve, strategic decision making and relentless operations focus from every person in the organization, that we are today a zero-debt company, with a net cash position of ₹6.30 billion.

Our balance sheet is now structured for long-term growth, with the ability to pursue right opportunities and be resilient in tough times. This position was ofcourse built by a ₹19.99 billion rights issue in FY 2024-25, which was oversubscribed 1.39 times. The trust our investors have placed in us is highly encouraging and I extend my heartfelt thanks for everyone who had participated in the rights issue. We intend to honour it with continued rigour.

Our real estate sales value stood at ₹62.77 billion, of which Sobha’s share was ₹49.60 billion. This performance was led by a sharp focus on the premium segment, where our average price realisation rose 22.8% to ₹13,412 per square foot. Homes priced ₹3 crore and above contributed

45% of our sales, while the ultra-premium ₹5 crore-plus category alone made up nearly a third of the mix. This speaks not only to our positioning, but also to the depth of demand in the markets we serve. It also reflects a shift in buyer behaviour—one that increasingly rewards credibility, delivery, and long-term value.

We handed over 4.64 million square feet across 2,797 homes and completed 4.54 million square feet. The scale of delivery is set to see a growth inline with the growth we have seen in the past four-year sales.

The year saw us launch eight new projects totalling 8.76 million square feet of saleable area. These included marquee developments such as SOBHA Aranya and SOBHA Altus in Gurugram, and SOBHA Ayana, Madison Heights, and Hamptons in Bengaluru. SOBHA Aranya and SOBHA Ayana alone contributed over a quarter of total sales value—underscoring strong product-market alignment.

Geographically, we expanded with purpose. Gurgaon and Pune recorded year-on-year growth of 50.5% and 93.1% respectively. Tamil Nadu and Hyderabad remained resilient, while Bengaluru— our largest market—contributed ₹36.42 billion. Our projects in GIFT City and Kerala were carefully phased, in line with market timing. Sobha closed the year with its highest-ever operational cash inflows of ₹61.84 billion.

In parallel we continued to invest in the strength of our integrated model. Sobha’s backwardintegrated delivery model—spanning design, engineering, manufacturing, and execution— remains central to our ability to control quality, optimise costs, and ensure delivery certainty. Our contracting and manufacturing businesses delivered revenues of ₹6.58 billion, and our commercial portfolio generated operating income of ₹529 million. These verticals are integral to our operations, catering to both inhouse projects and external clients with the same ethos of world class quality and delivery reliability.

Our performance must be seen in the context of the world we operate in. India continues to evolve rapidly—now the world’s fourth-largest economy, with a young, skilled population and strong urbanisation trends. Over one million engineering and technical graduates enter the workforce each year. Income levels are rising, credit access is expanding, and homeownership is increasingly seen not just as an aspiration but a necessity.

We believe that residential real estate developers like us will play a central role in meeting this demand—and Sobha is uniquely positioned to do so. The strength of our reputation, combined with our ability to consistently execute, puts us in a place of opportunity and responsibility. Our growth is not a response to trends; it is built on principles that have remained constant for three decades—quality, transparency, and reliability.

FY 2025 was also a year where those principles were reflected in the choices we made— particularly in how we approached our ESG priorities, with progress that was both deliberate and measurable.

We reduced our carbon footprint by 2,125 tonnes of CO₂ equivalent, largely through expanded solar usage at our corporate and manufacturing facilities. 80% of the energy needs at our corporate office and 50% of power at our interiors and glazing units were met through solar energy. We are increasing the focus on solar energy usage in our factories and extending the usage even to our concrete products unit.

We are working towards ambitious but necessary goals by FY 2030: 100% recycling of construction waste, 15% of energy sourced renewably, 35% water reuse, and the use of lifecycle assessments in 50% of raw materials. Our environmental agenda is matched by a deep and sustained focus on social impact.

Education, healthcare, women’s empowerment, and vocational training for youth and women have long been areas of focused effort. Through our CSR arm, over 1,170 underprivileged children received access to free, quality education, while more than 33,450 individuals benefited from primary healthcare services in the past year alone. Under the ‘1,000 Homes’ initiative, the Sobha Group has now handed over more than 230 homes—free of cost—to deserving families.

These efforts are not separate from our business—they are a reflection of the values that guide it. We believe that for any business to endure, it must create lasting value not only for its customers and shareholders, but also for the communities it touches.

This commitment to balanced growth continues to guide our strategic choices.

In FY 2025–26, we enter two important new markets—Mumbai and Greater Noida—marking a decisive step into regions that offer both depth of value and scale of opportunity. Alongside this, we have a development pipeline of 19.27 million square feet across nine cities, covering 18 residential and two commercial projects.

To deliver this with consistency and rigour, we will continue to invest in our people, processes, and technology.

Thirty years ago, Sobha was founded with the idea to transform real estate by superior quality, on-time delivery and exceptional customer service. Today, as we look forward, those ideas remain intact — refined by experience, strengthened by delivery, and validated by trust.

This has been a year marked by meaningful milestones, grounded in delivery, discipline, and clarity of direction. They reflect not just what we have achieved, but how we have achieved it. I want to thank the Chairman and Board for their guidance, our teams for their unwavering commitment, and our shareholders for their continued trust.

Thank you once again. I now hand the proceedings back to our Chairman.

Ravi PNC Menon

Thank you, Jagadish. I now request Mr. Bijan, Company Secretary, to provide a summary of the auditor's report.

Bijan Kumar Dash:

Hello, everyone. The statutory auditors, Walkar Chandiok & Co. LLP, and the Secretarial Auditor, Nagendra D Rao, have expressed unqualified opinion in the respective audit reports for the financial year 2024-25. There were no qualifications, observations or adverse comments on financial statements and matters which have any material bearing on the functioning of the Company. The statutory auditor reports on the Standalone and Consolidated financial statements, respectively, are available on page numbers 198 and 316 of the Annual Report.

The Secretarial Auditors Report is enclosed as Annexure A to the Board's report on page number 73 of the Annual Report. We will not read the auditors’ report here and we take the same as read. Thank you.

Ravi PNC Menon:

Thank you, Bijan. As the Notice is already circulated to all the members, I take the Notice convening the meeting as read. Before we proceed, I am pleased to bring to your notice that as required under the Companies Act, 2013, the Company has provided you the facility to cast your vote electronically on all resolutions set forth in the Notice.

We will open the floor for any questions by members after all the resolutions are tabled. The following is the gist of all the resolutions contained in the Notice of the Annual General Meeting:

ORDINARY BUSINESS

Item No. 1 - Ordinary Resolution

• a) To consider and adopt the standalone financial statements of the Company for the financial year ended March 31, 2025, together with reports of the Board of Directors and the Statutory Auditors thereon.

• b) To consider and adopt the consolidated financial statements of the Company for the financial year ended March 31, 2025, together with the report of the Statutory Auditors thereon.

Item No. 2 - Ordinary Resolution

To declare dividend on equity shares.

The Board has recommended a dividend of Rs. 3.00/- (30%) on the equity share of Rs. 10/- each for fully paid-up shares of the Company and pro-rata dividend on partly paid-up equity shares.

Item No. 3 - Ordinary Resolution

To appoint a Director in place of Mr. Jagadish Nangineni (DIN: 01871780), who retires by rotation and being eligible has offered himself for reappointment.

SPECIAL BUSINESS

Item No. 4 - Ordinary Resolution

Appointment of Nagendra D Rao & Associates LLP, Company Secretaries as the Secretarial Auditor of the company for a period of 5 (five) years

Item No. 5 - Ordinary Resolution

Ratification of remuneration payable to M/s. Gudi Srinivasarao and Co., Cost Accountants, the Cost Auditors of the Company.

Item No. 6 - Special Resolution

Issue of Non-Convertible Debentures on Private Placement Basis

Now the session is open for Question and Answer:

Those Members who have registered themselves as a speaker will only be allowed to express their views/ask questions during the AGM.

Members are requested to stick to /limit the question on the items circulated in the Notice of the Annual General Meeting and Financial Statements of the Company.

The name of the shareholders who have registered as speakers will be called serially to express their views.

If any shareholder is not present, the name of the next shareholder will be called.

The shareholders who have not registered as speakers but wish to ask questions can send the queries directly to us through the facility provided in the VC platform.

I Request the Moderator, please call the speaker as per the serial number:

(Moderator):

Thank you, Sir. Now I invite our first speaker Mr. Himanshu Upadhyay, Sir you are in the panel. Please enable your video and you may ask your question.

Mr. Himanshu Upadhyay:

Hello Sir, good afternoon.

I have sent my list of questions. For everybody’s reference, I’ll just speak them out:

1. We have stated that one of our business frameworks is that we have an in-house manufacturing facility, a complete design-to-delivery format, and 1,456 checkpoints and detailed protocols. This comes with its own challenges, right? Can you elaborate on this statement? With increased scale, these challenges are expected to grow. How are you working to reduce these challenges and maintain our brand ethos?

2. The company has stated that it has renewed its focus on commercial projects. Can you share what type of projects and strategy is being considered? Are we, for instance, dedicating a senior leader to oversee this vertical and make it a sizable business over the next five years? Some thoughts or clarity on that business would be helpful.

3. We have 11.5 million sq. ft. or ₹14,500 crore worth of inventory (under construction + unsold) at the end of March 2025. Can you share: What value (in million sq. ft.) is expected to be completed in the next one year and in the following two years?

Secondly, what is the value of unsold inventory in the projects that are getting completed in the next two years?

1. In FY 2026, we made significant land payments of ₹946 crore. Can you clarify how much of that was used for: The existing land bank (to make it contiguous or for approvals), Partner payments, and new land procurement?

2. In FY25, revenue from real estate increased by 40%, but the EBITDA margin percentage has fallen. Almost the entire revenue increase seems to have gone towards cost.

How should we look at this? Because most of the revenue for FY25 would have come from projects sold in FY22, when the market was performing much better.

1. Over the last three years, attrition has increased from 38% (in FY23) to 47% (in FY25). What are the primary reasons for such high attrition? What are we doing to reduce it? In this scenario, how do we ensure continuity in:

How we engage with our channel partners,

The quality we aim to deliver,

And the commitments we make to customers?

How big a threat is such a high attrition rate to the organization?

So these are my six questions. A point-by-point response would be very helpful.

Thank you.

(Moderator):

Thank you, sir. Now I invite our second speaker shareholder. Our second speaker shareholder Mr. Manjit Singh is currently not present in the panel. So, I invite speaker number three. Mr. Yash Pal Chopra Sir, you are in the panel. Please enable your video and you may ask your question.

Mr. Yash Pal Chopra

Yeah, I’m a shareholder from Delhi — a shareholder of the company since IPO level.

So, I’m very, very proud — proud to be with a company that is now a zero-debt company, ISOcertified, and running with a clear vision under your leadership.This is the first time I’m speaking at this meeting because, for the first time, I received the balance sheet — and it’s a 450-page document! That gave me a glaring example of what this company truly is.

Earlier, I was under the impression that this was just another home-building company, and I was casually comparing it with other players like Sobha and thinking that maybe 'XYZ Homes' is better. I never really knew what our company truly represented.

But now, after going through all that information, I must say I am very impressed.

First, I would like to pay my homage to the founder of the company, Mr. PNC Menon, for the visionary idea he had back in 1998, to start this journey in construction and homebuilding. He was truly a visionary. He knew that a time would come when someone would revolutionize the home construction space — and that time has clearly arrived.

Today, the company has a presence across nearly twelve states — from the northernmost to the southernmost points of India. The projects span across different types — from housing to institutional developments like universities and hospitals. I’m truly proud that this company is contributing to fulfilling the dreams of our Prime Minister as well — particularly, “Housing for All.”

So, I wish you the very best and must congratulate the entire team for the excellent performance of the company. There has been all-round growth — in revenue, PBT, PAT, RoCE, EPS. The dividend has also been investor-friendly, but I must say — I’m not very satisfied with the dividend. For such a large and successful company, the dividend could and should be enhanced.

Looking at the future, I believe the outlook is excellent. Last year’s performance was achieved despite a turbulent global economy — due to the Ukraine war and a confused domestic environment where the government’s full attention was on the elections. There was also a liquidity crunch.

Now, in FY25, there is ample liquidity in the hands of people, and many have realized that with rising incomes, they deserve better homes, better accommodation. So, there is strong demand for housing, and even our Prime Minister supports this vision. That’s a great incentive for our company. I’m proud that our company is on the fast track to growth, contributing to the economic rise of the nation. India is currently the fourth-largest economy and is on its way to becoming the third-largest by 2030 — that will be a huge, historic milestone.

At the same time, I would like to compliment both our founder and our young Chairman for leading a company with a diversified portfolio. This company is not limited to real estate or construction alone — it has a strong presence in manufacturing as well. That’s very strategic. If one vertical underperforms, the other can balance it out. So, as a shareholder, that gives me confidence and mental satisfaction.

Now, I come to a few queries:

1. Revenue Split:

Between the two regions — real estate and manufacturing — which one is generating more revenue currently? Which is the stronger contributor?

2. AI Applications:

AI is the buzzword today. What is the model or structure of AI applications within the company — especially in manufacturing and marketing? Are there AI tools already implemented or planned?

3. Attrition:

Such a large company must be facing attrition challenges. People today are career-focused and tend to move on quickly for better opportunities. What is the current attrition rate? What steps are being taken to reduce it?

4. Gender Ratio:

Our Prime Minister strongly supports women’s empowerment. What is the gender ratio in our workforce? Are there initiatives to enhance women's participation in the organization?

5. Expansion Plans:

Does the company have any plans to expand into the Northeast or other regions where we may not have a presence yet?

6. Dividend:

As I said earlier, while the company is performing exceptionally well, the dividend payout is not proportionate. I strongly urge the management to consider enhancing the dividend to reward long-term shareholders.

7. Founders & Supporters Recognition:

August 7th is the company’s annual day. While I know the company celebrates it with employees, I humbly request that you also remember the early supporters and shareholders on that day. We are part of this journey too and would love to bless the company on that occasion.

Lastly, I must compliment the Company Secretary for preparing such a comprehensive 450-page balance sheet — beautifully detailed with tables, graphs, and even photographs that reflect the real work happening on the ground. If someone ever asks me, “Can I visit the plant?” — I would say, “Just read the balance sheet; it’s a plant visit in itself!”

Before I conclude, I thank the Company Secretary, the moderator, and pray for continued positivity for the entire team, especially for our young Chairman and the professional leadership surrounding him. May you all be blessed by the Almighty. When the company is blessed, so is my investment.

Best of luck to you! We are now heading into a festive season, starting August, so I wish you all a joyful time ahead with your families — full of good health, good moods, and success. Lots of blessings from a super senior citizen and super senior shareholder.

I’m basically an advocate, retired 28 years ago from Indian Oil Corporation, and have long been involved with corporate governance.

Thank you.

(Moderator):

Now I invite our speaker number four, Mr. K Bharatraj. Sir, you are in the panel. Please enable your video and you may ask your question.

Mr. K Bharatraj

Yeah, very good morning, Mr. Chairman, entire Board of Directors. I’m Bharatraj, attending from Hyderabad.

Mr. Chairman, first of all, I would like to say that the Secretarial Department is wonderful in terms of annual report and always accessible and responsive.

Also, a wonderful Annual Report — it contains a lot of information. And my chairman has given a very good speech — I support all the resolutions. Now, I have a few points and queries:

When you're constructing apartments, do you consider building according to Vastu? Because Indians look Vastu and if you build in countries like Dubai and other parts of the world, they don’t consider Vastu there universal buildings are being constructed. Are we also building similar ones in India? Please let me know.

Recently, in Hyderabad, I attended an exhibition on a Saturday — it was focused on international investments. One of the developers there showcased their work in Dubai. I asked them if they built apartments in accordance with Vastu? They replied, “No sir, we don’t build as per Vastu.” So, how are we addressing this for Indian buyers who are interested in Vastu ? Please let me know, Mr. Chairman.

Also, our company is growing very aggressively, which is wonderful. In Hyderabad as well, you've started operations. When can we expect that project to be completed?

And what is the position in Kochi, of our biggest site that you are planning to construct? When is the closure expected?

One more request, Mr. Chairman — we have been expecting a bonus for a long time. Please consider declaring a liberal bonus.

And once again, Mr. Chairman, please consider distributing sweets and dry fruits to celebrate our progress.

Once again, I thank you —all the way from Hyderabad. Thank you very much.

(Moderator):

Thank you, sir. Now I invite our speaker number five Mr. Aspi. Sir, you are in the panel. Please enable your video and you may ask your question.

Aspi:

I am Aspi from Bombay. Thank you for giving me the opportunity to speak. I congratulate the management on the very good results, and I hope you continue to perform this way.

Regarding increasing the dividend, I do not approve of it because our finance costs are almost 19 crore per year. So, you should try to conserve cash rather than just giving higher dividends. I am also not in favor of a bonus or anything like that. If you want, you can consider a small rights issue.

We have too much inventory — what is your proposal to reduce it?

Coming to segment reporting, specifically the contractual and manufacturing segment, why is the profit reducing so much? Last year, it was 250.5 million, and this time it is only 174 million. Please explain why this profit is going down.

Secondly, how much of our sales income comes from high-end flats, and how much from lowend

flats? In India, demand for high-end flats is increasing, while demand for lower-end flats is reducing. So, please concentrate more on high-end flats. Thank you very much, and all the best for the future.

(Moderator):

Thank you, sir. Now I invite our speaker number six, mr. Redepa. Sir, you are in the panel. Please enable your video and you may ask your question.

Reddeppa Gundluru

Good afternoon,

I am very happy and proud of the company’s performance and progress. I requested the annual report and received it well in time. Thank you to the company secretary team.

Sir, I have gone through the annual report, and it was very amazing — excellent quality. The reports are informative, with numbers and figures as per statutory requirements. Also, I would like to thank my company for maintaining transparency and governance. Special kudos, special appreciation, and special thanks to all our hardworking KMPs, especially the accounts team and company secretary.

Sorry, there was some unexpected call just now. Thank you for the wonderful financial performance. Good numbers have been posted, and there is good growth. Everything is going well, sir. Your hard work is rewarding us shareholders, including minority shareholders.

Sir, I have already shared my questions with the company secretary, so I will not repeat them. I’ll just ask a few general questions. Just a minute, sir. Are there any plans to expand into new cities, like tier-2 markets, in the next two to three years?

Apart from that, I don’t have any other questions, as I already shared them with the company secretary. I strongly support all the resolutions, sir. This concludes my reporting from my side. Please continue the VC for the financial year so that I can attend from anywhere in the world. Thank you, sir.

Sir, I want to bring a special request to the board and others who have shown consistent support to our company. Last year, I requested a concession for a second mattress through the company secretary. Despite multiple follow-ups and sharing video proof of my son’s medical details, I have not received any response or support. I am deeply disappointed that my genuine request was not valued, especially considering the fact that my son is undergoing special medical treatment.

This is an exceptional case, and I requested a quality mattress necessary for his well-being. I approached with respect and sent emails and calls, but messages were not answered by the team. That is why I am bringing this to the board now in the AGM.

I request your kind approval for an exception of 75% for a second mattress. Our quality mattresses are currently in my elder son’s bedroom, and I need one for my special child’s bedroom as well.

As a goodwill gesture to a shareholder who has actively supported the company, if this cannot be resolved through the company secretary, I kindly request you to provide your approval and office contacts so I can follow up directly.

Looking forward to your kind support, sir. Thank you so much. I pray to God to give wisdom, strength, and happiness to you, your family members, and the entire company secretary team. I am a proud shareholder and thankful to you all.

(Moderator):

Thank you, Sir. So now we invite our last speaker shareholder, Mr. Manmohan, you are in the panel. Please enable your video and you may ask your question.

Manmohan Dang

Let me start my note.

Respected Chairman Sri Ravi Menon, Managing Director, other Board of Directors, KMPs, Shri Yogesh Banzal, Chief of Finance, and Chief of Compliance —

To all the shareholders attending this VC, I am Manmohan singh, along with two other shareholders attending this VC from Delhi.

Much has been spoken, sir, regarding the company’s workings. Your presentation speaks volumes. I am equally happy to acknowledge the hard work and good results the company has delivered under review.

First of all, under CSR, you are empowering people by giving them free houses, which is much appreciated, along with other CSR activities pertaining to education and health. I really applaud this. In fact, we really applaud these efforts.

Now, sir, as I have listened, some learned shareholders have already given their speeches and asked several questions. I have two or three small questions, and your input on these will really help me.

Number one: Regarding the real estate projects under development, are there any delays? Usually, projects are delivered in about three to four years’ time. So, the projects that are already underway with built-up areas are a very good sign.

For NCR, Delhi, and Gurugram, how much land has been banked? What is the timeline for this? Last question: How much land was acquired in the last financial year? If you could reply, we would feel very happy.

We have been working for 30 years, which is really commendable. I acknowledge that 30 years is not a small period for a company, and we are looking at the next 30 years with more energy and stamina to grow from here on.

All the very best, and my personal best wishes to the company.

One more thing: some shareholders are interested in joining physically for meetings, so it would be good if you could allow those sitting in Delhi to attend meetings in person and contribute. We have been here since the IPO and feel very good about the company. Thank you for your Bijan Sir for your corporate governance, along with Yogesh’s hard work — it really makes us proud.

Thank you, moderator, and all the very best from Delhi. Bye-bye.

(Moderator):

Thank you, sir. Our last speaker shareholder, Mr. Ramesh Golla is currently not present in the panel, so with this we complete our speaker shareholder questions over to you sir.

Jagadish Nangineni:

Thank you. Thank you to all the shareholders who have posed their questions to us and also shown their appreciation for the work that has been done by the company. There are several questions related to both operations and finance. I will take up the operations-related queries, and some of the financial questions will be addressed by our Chief Financial Officer Yogesh.

With respect to some of the operational questions, one of the first things—as you're all aware— is that we are indeed scaling up. You can see this reflected in the numbers we are achieving. Naturally, one of the questions that arises is: how do we continue to deliver our projects with the quality we have always been known for, even as we grow?

We have established an integrated financial and operating model, which is modular in nature. The organizational structure has been designed in a way that allows it to expand as the number of projects and locations increase. Hence, scaling up is not new to us—only now, we are doing so from a much higher base.

As we increase the scale of operations, there are challenges with respect to people and processes—specifically, maintaining consistency across project locations. To address these, we have aggressively and proactively adopted new technologies, tools, and methods across our various sites. We now have a central technology team, and we have recently reorganized our overall development and execution teams to cater to this scale. We have promoted several deserving individuals into positions where they can handle this growth and mentor others. These individuals bring with them valuable experience, having delivered quality results in the past. Now, they are playing a much larger role and driving renewed focus on improving consistency in processes across sites.

In addition to technology, people training is the second key pillar. This is a continuous and critical process within our organization. The pace and scale of our training efforts are increasing to ensure delivery remains consistent and of high quality.

Third is our continuous review process, which is essential for operations and supply chain activities. This ensures all support functions are aligned with project requirements.

We are confident that we can continue to deliver at scale, maintaining our standards. As mentioned earlier, we are proactively exploring, evaluating, and executing several technology initiatives to:

1. Reduce dependency on manpower,

2. Improve quality, and

3. Accelerate delivery speed.

All these are continuous efforts. We are fully aware of the demands of scaling up, and we are committed to addressing the challenges that come with it.

Regarding People & Attrition:

Some of the queries were related to attrition. Yes, attrition is indeed a challenge for many industries, including ours. As a company that often serves as a training ground for many entering the construction industry, we experience significant attrition.

While some attrition is natural, we are addressing it proactively through several recent initiatives. These include new engagement and reward programs, as well as training initiatives for new employees. We believe that, through these, attrition levels will become more manageable.

While attrition is something we must live with, it should not impact our overall operations. Our Human Resources department is continuously on the lookout for new talent, while also training and retaining existing staff. We are hopeful that these steps will yield positive results going forward.

On Gender Ratio:

One of the questions raised was about the gender ratio in our organization. As an integrated construction company, a majority of our employees are deployed at project sites, where the proportion of female colleagues is currently lower.

However, across other functions, we have a healthy gender mix. Currently, women represent approximately 14% of our workforce. Out of a total of 4,505 employees across functions, divisions, and locations, 627 are women.

On Commercial Portfolio:

Another query was about our commercial real estate portfolio. We remain predominantly focused on residential development and do not actively pursue commercial opportunities. However, we do take up strategic commercial projects—such as when a large township includes a commercial component. Currently, we have two assets generating rental income, and a few more under development, mainly in Gurugram, Bangalore and Thrissur. These are in small areas but will contribute incremental rental income in the future.

Our focus on residential development stems from the immense opportunity and depth in this segment. Given our capital structure and financial goals, we will continue to prioritize residential development in the near to medium term.

On Expansion Plans:

We are currently operating in 12 cities, and in the next financial year, we plan to expand to at least two more cities which is greater Noida and Mumbai. These cities are strategically important, and we are actively exploring opportunities there.

On AI Applications:

AI is both a buzzword and a real transformative force. In our industry, we are forming internal groups to evaluate AI applications. We've started by ensuring our ERP system provides a stable core for operations.

The next phase will involve integrating function-specific tools to increase efficiency. In areas like construction and design, we are actively testing AI applications. While not all are reliable yet, we are adopting them in a calibrated way to enhance productivity.

We are also evaluating AI use in marketing and operations, with a focus on customizing these tools to add meaningful value to our business.

On Dividends:

This year, we have declared a dividend of Rs. 3 based on the company’s performance. Going forward, decisions on dividend enhancement will be based on company performance, capital needs, and our ability to pay. As someone has pointed out, cash is critical in a capital-intensive sector like real estate.

Finance-Related Questions will be addressed by Yogesh, Chief Financial Officer.

Yogesh Bansal:

Regarding financials, one question was about lower EBITDA. In real estate, sales and revenue recognition do not always go hand in hand. While direct costs—such as sales and marketing—are booked in the same period, the related revenues are recognized over the period of 3–4 years.

Last year, we sold more than what was recognized as revenue, so the direct costs had a visible impact on reported margins. However, at the project level, our gross margin was 33%.

Land Payments: Last year, we paid ₹946 crore, of which 51% was for new land deals, and the balance for permitted land and consolidation of our own land bank.

Revenue Outlook: In the next two years, we expect to complete 10–12 million sq. ft., largely from already sold inventory.

A question was also raised about lower profits in contracts and manufacturing. Some of these were pre-COVID contracts, and the cost escalation during and after the pandemic affected margins. We do not expect this margin compression to continue going forward.

Jagadish Nangineni:

On Real Estate Project Delivery:

One final question was about project delays. We would like to confirm that there are no delays in any of the projects we have undertaken. To date, we have not delayed a single project, and we do not foresee any delays in ongoing work.

We currently have four projects in progress in Gurugram, and we have visibility of an additional 6–7 million sq. ft. in Gurugram. We are actively seeking new opportunities and are committed to increasing our presence in this market.

With this, we believe we have addressed most, if not all, of the questions raised by shareholders. I request the Chairman to continue with the meeting proceedings.

Ravi PNC Menon - Chairman:

Thank you, Jagdish, Thank you Yogesh,

We thank all shareholders for their continued support and cooperation. For those attending this AGM who have not yet cast their vote, please be reminded that the e-voting facility remains open for 30 minutes after the conclusion of this meeting. Members are requested to utilise the opportunity to cast their votes after that the e voting facility will be disabled.

The Board of Directors has appointed Nagendra D Rao, a practicing company secretary as the scrutinizer to supervise the e-voting process. The voting results will be announced to the stock exchanges and also will be placed on the website of the company within 48 hours of closure of this meeting.

I hereby authorize Bijan Kumar Dash, Company Secretary and Compliance Officer to receive the scrutinizer's report and announce the results to the Stock exchanges and also upload on the website of the company. Thank you once again to all shareholders present at this AGM for your support and for attending today’s meeting. There being no other matters for discussion, I now declare the meeting concluded.

Thank you.

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