SignatureGlobal India Ltd Management Discussions

GLOBAL ECONOMY

The global economy demonstrated a degree of stability in 2024, even while navigating various economic, international relations, and governmental challenges. Global gross domestic product (GDP) growth, according to the IMF, reached 3.3%. The pace of economic expansion varied considerably worldwide. Growth in more established nations experienced a downturn, while developing economies, particularly in Asia, largely maintained consistent expansion. Meanwhile, India secured the position as the world s fourthlargest economy, surpassing Japan and is on track to become the world s third with a projected GDP of USD 7.3 trillion by 2030.

The launch of DeepSeek by China, followed by a new wave of tariffs on key imports, added fresh uncertainty to the global economic landscape, heightening concerns over supply chain disruptions and geopolitical fragmentation. The tariff

escalation also raised the risk of retaliatory trade actions, which could weigh on global investment flows and complicate inflation management for many economies.

Throughout 2024, the global economic landscape faced persistent difficulties. These included the ongoing Ukraine conflict, Red Sea disruptions, international supply chain issues, trade disputes, and investment shifts influenced by climate policy.

Global inflation trends showed improvement, projected at 5.7% for 2024, a drop from 6.7% previously. Developed economies are expected to meet their targets sooner, averaging 2.6% in 2024. Emerging markets, however, will experience a more gradual decline in inflation.

(Source: World Economic Outlook, IMF, April 22, 2025)

Outlook

The global economy is predicted to maintain a steady expansion path, with growth rates anticipated at 2.8% for 2025 and 3.0% for 2026. This favourable outlook reflects a balanced recovery across major economies, supported by steady demand and easing inflationary pressures. Key emerging markets are anticipated to contribute significantly to this growth, leveraging industrial activity and consumption improvements.

In the United States, following a period of robust economic activity, growth is forecast to moderate to 1.4% in 2025 and further to 1.5% in 2026. This projected deceleration reflects expected adjustments in the labour market and a normalisation of consumer spending from elevated levels. A recovery is predicted for the Eurozone, with growth projected at 0.8% in 2025, improving to 1.2% in 2026, linked to increased consumer spending and lower inflation rates.

Global price increases are generally slowing, though some areas face persistent high inflation. Global inflation is projected to decline to 4.3% in 2025 and 3.6% in 2026. Developed economies are expected to achieve their inflation targets sooner than others. Monetary policies will likely differ across regions, reflecting varying economic circumstances.

Indian Economy

Indias economy maintained a consistent growth trajectory and stability throughout FY 202425. This performance confirmed its standing as a major global economy, achieving strong growth. The National Statistical Office (NSO) projected real Gross Domestic Product (GDP) to grow by 6.5% in FY 202425. This follows the 9.2% growth reported for the previous fiscal year.

This sustained upward trend highlights Indias firm economic base, effective government policies, a dynamic services sector, and strong domestic spending. These factors collectively point to a bright future for Indias longterm economic progress.

Indias economic stature continues its ascent. It is now the worlds fourthlargest economy by nominal GDP, surpassing Japan, and thirdlargest by purchasing power parity (PPP). National targets are set to achieve a USD 5 trillion economy by FY 202728 and USD 30 trillion by 2047. These aims depend on substantial infrastructure investments, ongoing governmental reforms, and widespread technology adoption. Reflecting this commitment, the capital investment budget for FY 202526 increased to INR 11.21 lakh Cr, representing 3.1% of GDP.

Significant governmental reforms and considerable capital allocated towards both physical and digital infrastructure are central to Indias accelerated growth and increasing economic selfsufficiency. Government initiatives include Make in India 2.0, ease of doing business reforms, and the ProductionLinked Incentive (PLI) scheme. These aim to strengthen infrastructure, manufacturing, and exports, positioning India as a global manufacturing player. With inflation expected to meet targets by late 2025, a more accommodating monetary policy is probable. Infrastructure development and supportive policies will aid capital formation. Rural demand also benefits from initiatives like the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY).

9.7% 7.6% 9.2% 6.5% 6.2%

Source Press Information Bureau Outlook

Indias economy is currently set for substantial growth, with a projected expansion rate of 6.2% for FY 202526. This advancement is driven by significant infrastructure investment, increased private sector capital expenditure, and expanding financial services. Ongoing reforms are expected to provide longterm support for this economic progress.

Several factors support this positive outlook. These include favourable demographics, increasing capital investment, proactive government initiatives, and strong consumer demand. Improved rural spending also contributes, aided by easing inflation. The governments emphasis on capital expenditure and sound fiscal management creates a supportive environment for investment and consumption. Measures designed to enhance business and consumer confidence further aid this.

The Union Budget FY 202526 outlines a financial strategy focussed on growth, addressing both immediate and future economic requirements. By increasing disposable income, prioritising infrastructure, and promoting domestic

manufacturing, the budget aims for sustained growth while maintaining fiscal responsibility. A notable aspect of the budget is the increased income tax exemption limit of INR 12.75 lakh per annum, which is expected to boost middleclass disposable income and stimulate consumer spending.

INDUSTRY OVERVIEW

Indian Real Estate Sector

Indias real estate sector exhibited notable strength and adaptability in FY 202425. The industry was valued at USD 482 bn in 2024. It is projected to reach USD 1,184 bn by 2033, growing at a CAGR of 10.5%.

The Indian real estate sector has emerged as a cornerstone of the nations economic growth, significantly increasing its contribution to the Gross Domestic Product (GDP) over the past two decades. Currently, the sector accounts for approximately 7.3% of Indias GDP, with projections indicating this share could expand to 13% by 2025 and potentially 15.5% by 2047. This growth underscores its pivotal role beyond just construction, encompassing a wide array of economic activities.

Over the last 20 years, the sector has undergone a profound evolution, transitioning from a largely unorganised state to a more structured and dynamic industry. The early 2000s saw nascent growth, driven by initial urbanisation and economic liberalisation, though marked by limited standardisation. The mid2000s experienced a boom, particularly with the rise of the IT and ITeS sectors, which spurred demand for commercial spaces and led to the emergence of integrated townships. This period also benefited from increasing disposable incomes and more accessible home loans.

A significant turning point arrived with the introduction of landmark reforms such as the Real Estate (Regulation and Development) Act (RERA) in 2016 and the Goods and Services Tax (GST) in 2017. These legislative changes brought muchneeded transparency, accountability, and standardisation, fostering greater buyer confidence and attracting increased investment. Concurrently, government initiatives like the Housing for All scheme and the Smart Cities Mission have provided substantial impetus, particularly to the affordable housing segment and urban infrastructure development.

The Indian real estate sector has emerged as a cornerstone of the nations economic growth, significantly increasing its contribution to the Gross Domestic Product (GDP) over the past two decades.

Along with the above, the sector s growth trajectory is

supported by several other key factors:

Urbanisation: Urban areas are set to accommodate close to 600 mn people by 2026. This population shift raises urban density to 40% of the countrys total, from 31% in 2011.

Economic Contribution: Urban regions are forecast to generate nearly 70% of the national GDP. This provides significant advantages for the real estate sector across housing, retail, office, and infrastructure development.

Ecommerce Expansion: Indias ecommerce market shows substantial projected growth. It is expected to expand from INR 4,416.68 bn (approximately USD 53.07 bn) in 2024 to INR 7,591.94 bn (approximately USD 91.23 bn) by 2029. This expansion is reshaping the real estate landscape, particularly for logistics and warehousing.

Policy Reforms: Policy initiatives, such as the Real Estate (Regulation and Development) Act, 2016 (RERA), have improved sector transparency. These reforms have also significantly increased investor confidence.

Foreign Investment: The sector has drawn substantial foreign direct investments. This inflow serves to further propel its growth.

(Source: IMARC)

Improved connectivity & Infrastructure development:

Enhanced connectivity, particularly through new Expressways and National Highways, is a significant catalyst for the real estate sector. These infrastructure projects improve accessibility to previously underserved

areas, fostering urban expansion and driving property value appreciation in connected regions. This directly stimulates demand for both residential and commercial developments, attracting investment and facilitating broader economic activity.

The residential segment remains a cornerstone, with sustained demand across various income groups. Commercial real estate has rebounded robustly, driven by sectors such as IT, BFSI, engineering, and manufacturing. The retail and hospitality sectors are experiencing a renaissance, with consumer spending reaching USD 1.29 tn in 2024.

(Source: KPMG)

Indias luxury residential market has undergone significant change. It now contributes strongly to overall sector growth. This segment is driven by increased disposable incomes and a desire for premium living. Postpandemic, buyers also seek larger, welldesigned homes. High Net Worth Individuals and affluent buyers prioritise branded residences, integrated amenities, and strategic locations. Developers are adjusting their offerings to meet these evolving demands. Low inventory levels, improved RERA transparency, and strong enduser demand further support this segment. These factors indicate continued market momentum.

The Indian real estate sector is set for continued growth in FY 202526. This outlook is supported by economic expansion, urbanisation, and beneficial government policies. The residential market should gain from improved affordability. Projected interest rate cuts will enhance homeownership prospects. Technological integration and a commitment to sustainability will remain central. These elements will shape future real estate development and investment across India.

(Source: Knight Frank Report)

Residential Sector

The Indian residential real estate market maintained its positive momentum, building on a good performance since 2020. This growth stems from increased personal savings, stable incomes, and a healthy economic outlook. India also shows significant GDP growth.

Home sales volumes reached a twelveyear high in 2024. A total of 0.35 mn units were sold, marking a 4% yearonyear increase. Sales in H2 2024 grew by 3% yearonyear to 0.18 mn units. This activity continued into Q1 2025, with 88,274 units sold, a 2% rise yearonyear. This sales growth was complemented by a rise in per sqft prices, thereby translating into higher overall sales values for the sector.

India Market Summary

Parameter	2024	2024 Change(YoY)	H2 2024	H2 2024 Change (YoY)
Launches (housing units)	372,936	6%	189,535	7%
Sales (housing units)	350,612	7%	177,371	3%

Note 1 square metre (sq.m) = 10.764 feet (sqft)

Source: Knight Frank Research

New project launches have consistently outpaced sales since 2022. Launches reached an elevenyear high of 0.37 mn units in 2024. Q1 2025 saw 96,309 units launched, a 3% increase over the prior period. Developers adapt to buyer needs, delivering properties with improved space, amenities, and experiences.

Indias midend (INR 45 lakh 1 Cr) and highend (INR 1 2 Cr) housing markets experienced consistent demand in 2024. The midend segment remained the most soughtafter, accounting for over 40% of total residential sales, attracting many firsttime buyers. The highend segment followed, comprising about 27% of demand. A notable trend was the blurring distinction between these segments, with traditionally midend markets like Noida, Pune, and Chennai seeing increased highend activity.

A clear shift to premium and luxury homes is evident. Units over INR 10 mn formed 46% of H2 2024 sales; this held true in Q1 2025. Sales in this segment grew by 29% yearonyear in H2 2024 and 16% in Q1 2025, driving overall sales growth. The INR 2050 mn price range saw the most growth, increasing its share and sales volumes. Demand for units under INR 10 mn declined in H2 2024 and Q1 2025. This shows a market shift to higher margin segments.

The luxury housing market in India saw a remarkable 75% YoY sales increase in 2024. This surge was driven by affluent buyers desire for upscale living and luxury properties appeal as investments for the expanding uppermiddle class, NRIs, and HNWIs. DelhiNCR, Mumbai, and Hyderabad dominated luxury sales, accounting for over 90% of the market, with Gurugram showing particularly strong growth.

Developers responded by launching approximately 22,000 luxury units, a 25% yearonyear increase, aligning supply with robust demand.

Bank credit to Indias residential real estate sector grew significantly, with the RBI reporting an 11% YoY increase in home loan disbursements in 2024, reaching INR 2.9 lakh Cr by December. Firsttime homebuyers were a key driver. A clear upward trend in average loan ticket sizes was observed, with housing loans exceeding INR 75 lakh constituting approximately 30% of the total housing loan market in FY 202324, a notable expansion from 19% in FY 201920.

A stable economic climate should improve homebuyer credit. This is aided by recent RBI rate cuts and efforts to boost banking liquidity. The governments focus on housing for all and stable interest rates creates a positive market outlook.

(Source: Knight Frank Report, CBRE Research Report)

Commercial and Office Sector

Indias commercial real estate market saw its strong performance continue into 2025. This momentum extends from the record transaction volumes recorded throughout

2024. Positive economic sentiment remains the key influence on occupier activity within the market.

Office space transactions reached an unprecedented 6.68 mn sq. m (71.9 mn sq. ft.) in 2024. This figure significantly surpassed the previous peak set in 2019. The second half of 2024 maintained this pace, with 3.46 mn sq. m (37.3 mn sq. ft.) transacted, an 11% yearonyear increase. The first quarter of 2025 saw this trend persist, setting a new high of 2.62 mn sq.m (28.2 mn sq. ft.). This represented a substantial 74% increase yearonyear and accounted for 39% of the total area transacted in the recordbreaking year of 2024.

Transaction volumes in Mumbai, NCR, Bengaluru, Pune and Ahmedabad scaled record highs in terms of annual transacted volumes in 2024, while Bengaluru and NCR achieved the same milestone in halfyearly terms in H2 2024 as well. Bengaluru, NCR and Mumbai are the three largest office markets in the country, and they accounted for 57% of the total transacted area during the year. All three markets saw volumes grow much above the country s growth rate of 21% YoY during 2024 and were the primary volume drivers for the Indian office market.

India Market Summary

Parameter	2024	2024 Change(YoY)	H2 2024	H2 2024 Change (YoY)
Completions in mm sq (mn sqft)	4.67 (50.3)	17%	2.34 (25.2)	1%
Transactions in mm sq (mn sqft)	6.68 (71.9)	21%	3.46 (37.3)	11%
Note : 1 square metre (sq.m) = 10,764 square feet (sqft) Source: Knight Frank Research

Demand drivers in the Indian office market have shifted. Previously, ThirdParty IT Services were a key factor. More recently, Indiafacing businesses primarily drove demand. In Q1 2025, IT Services saw a return, making up 19% of total transactions. However, Global Capability Centres (GCCs) are now the primary demand segment.

GCCs accounted for 31% of total transactions in 2024. This increased to 44% in Q1 2025, reaching their highest quarterly volume on record. This reflects global companies expanding their operations in India to take advantage of talent and cost benefits. Indiafacing businesses, while previously leading, saw their share decrease to 17% in Q1 2025.

The ongoing increase in office demand shows positive business sentiment across India. Remote working did not significantly affect the Indian office market. Most sectors, including major technology firms, have returned to fulltime office environments. Indias economic growth and a probusiness government suggest the office market is set to maintain its momentum in 2025. The main challenge will be the available supply of office space.

(Source: Knight Frank Report)

Retail Sector

India s organised retail sector, particularly within malls, has seen a significant comeback and sustained growth since 2022. Strong consumer sentiment, combined with stable economic conditions, drives increased footfall and sales. This momentum fuels active leasing and new store launches

by both national and international retailers. High occupancy rates in quality developments are now creating a clear demand for new mall space.

The Grade A organised retail stock in Indias top seven cities stood at 87.2 mn sqft as of December 2023, following a correction for subpar properties. Vacancy rates are on a declining trend. Recently completed quality mall developments have achieved high occupancy levels, reinforcing the strength of India s physical retail market. PanIndia vacancy across mall stock in these seven cities was 11.4% by September 2024.

Retail leasing activity remains strong, driven by retailer preference for highquality malls. Net absorption has been healthy when quality supply enters the market. Net absorption reached an alltime high in 2023, with substantial space takeup across key cities. Retailers are now optimising store formats and locations, focussing solely on quality mall developments.

The outlook for the retail segment is positive, supported by favourable demographics, a stable economy, and projected highquality retail completions. India remains a key market for global brands looking to expand. The market anticipates the growing popularity of new concepts and the development of more destinationoriented shopping malls. The sector also presents opportunities for new REIT listings, as global funds partner with developers. This focus on quality malls is expected to result in lower vacancies, quicker stabilisation, and improved rental growth and asset values.

India s organised retail sector, particularly within malls, has seen a significant comeback and sustained growth since 2022.

NCR REAL ESTATE SECTOR

The National Capital Regions real estate market, particularly its residential segment, has seen a strategic recalibration after consistent growth since 2020. Demand continues to shift towards highervalue properties, reflecting evolving buyer preferences and the impact of significant infrastructure developments.

NCR Residential Sector

The residential market in NCR saw a pause in its growth trajectory. Although new launches reached 53,000 units, reflecting a 44% increase, sales volume declined by 6% yearonyear. However, the rise in per sqft values supported overall sales performance in terms of value.

NCR Market Summary

Parameter	2024	2024 Change (YoY)
Launches (housing units)	53,000	44%
Average Capital Value (INR/sqft)	7,550	30%

Note : 1 square metre (sq. m) = 10.764 square feet (sqft)

Source: ANAROCK Report 2024

Gurugram remained the preferred micromarket in H2 2024, making up 51% of total launches and 49% of sales. The ongoing development of the Dwarka Expressway and other key infrastructure projects enhances its connectivity and attractiveness, particularly for premium projects. Noida and Greater Noida together accounted for 33% of NCR s sales in H2 2024. Buyer confidence in these areas has risen due to government dispute resolution efforts and improved infrastructure, including the Noida International Airport. Ghaziabad secured a 13% sales share, appealing to midincome buyers due to its affordability and better connectivity. Delhi and Faridabad showed limited activity, collectively less than 6% of sales, due to land constraints.

Premiumisation and Affordability

A defining trend is the clear shift towards premium housing. Properties priced above INR 10 mn made up 88% of total sales in H2 2024, a 30% YoY increase. This growth highlights demand for spacious homes with modern amenities. The INR 1020 mn and INR 2050 mn segments saw the most activity. Conversely, the affordable housing segment (below INR 5 mn) faced challenges, its share shrinking to less than 5% of total sales in H2 2024. Rising borrowing costs impacted budgetconscious buyers, also affecting the INR 510 mn segment.

Infrastructure and Outlook

Major infrastructure projects, including the DelhiMumbai Expressway, Regional Rapid Transit System (RRTS), metro expansions, Noida International Airport, and Gurgaon Metro expansion, significantly enhance regional connectivity. These developments create new growth corridors and increase the appeal of peripheral areas. NCRs residential market, known for its investment interest, saw its topend continue

to drive volumes even as the overall trajectory plateaued in 2024. The market expects cautious yet steady growth, with developers focussing on premium and midsegment housing in wellconnected areas. The markets performance relies on regulatory stability, financing conditions, and timely infrastructure project completion.

NCR Commercial and Office Sector

The National Capital Region (NCR) experienced exceptional growth in residental & commercial leasing during 2024, reaching 1.2 mn sq. m (12.7 mn sq. ft), a 25% increase from 2023. The second half of 2024 was particularly strong, driven by robust domestic economic conditions, rising corporate confidence, and a diverse occupier base. This demand was further boosted by the shift towards officebased and hybrid work models. Gurugram dominated leasing activity with a 64% share. Noida also performed strongly, while Delhis Secondary Business District saw increased activity.

Despite a 20% decline in residental & commercial completion in H2 2024, the market saw a significant 395 basis point reduction in vacancy rates, bringing the overall vacancy to 8.4%. This highlights a sustained demand for highquality, ESGcompliant office spaces. Indiafacing businesses led leasing activity, with flexible workspace operators showing a strong recovery, particularly in Gurugram and Noida, catering to the growing preference for scalable and collaborative environments. The average transacted rents in NCR increased by 3% year on year, with Gurugram Zone A and SBD Delhi leading this growth.

approval of the New Noida city project and the completion of expressways like the DelhiMumbai Expressway. These advancements are set to attract more occupiers, further reducing vacancy rates and putting upward pressure on rents.

COMPANY OVERVIEW

Signatureglobal (India) Limited (referred to as Signatureglobal or the Company ) is a leading real estate development company in India, founded in 2014 by seasoned professionals with extensive experience in the financial services sector. The company initially established itself as a key player in affordable and midhousing segments. In 2024, it successfully transitioned to the premium housing segment through the launch of new group housing projects. Signatureglobal now focusses on midincome and premium segments, emphasising quality execution, value creation, reliability, and adherence to global standards. Post Covid19 pandemic, Signatureglobal has achieved 20% market share in Gurugram and 13% in Delhi NCR in the mid income housing segment.

The company upholds high standards of corporate governance and environmental responsibility. Signatureglobal follows a disciplined approach to land acquisition, maintaining a lead time of approximately 18 months from acquisition to

project launch. All projects are strategically located in key areas of Delhi NCR and its micro markets, including South of Gurugram (Sohna), Southern Peripheral Road (SPR), and Dwarka Expressway and New Gurugram. This strategic positioning and operational discipline attract support from prominent investors.

Signatureglobal consistently incorporates sustainable best practices into the design and construction of its projects. This involves implementing environmentally friendly building concepts aimed at increasing green cover and minimising net carbon impact. Most of the companys projects are either EDGE or IGBC certified. Signatureglobal also holds globally recognised certifications, including ISO 9001:2015 for quality management systems, ISO 14001:2015 for environmental management systems, ISO 45001:2018 for occupational health and safety, and ISO 27001:2022 for information security management systems (ISMS). These efforts have received industry recognition, such as the Developer Leading the Green Affordable Housing Movement in India. The Company adopts a strategic approach to land acquisition, aiming to maintain a land bank roughly equivalent to its planned launches over a period. This approach reflects a balanced strategy, ensuring a visible development pipeline while concurrently upholding the Companys strong liquidity position.

The company has replicated its business model across micromarkets in Delhi NCR, with a particular focus on Gurugram, Haryana. Its rapid expansion is attributed to standardised design, technical specifications, and layout plans. These methods enable efficient future expansion. Signatureglobal s track record in execution and continued construction has been instrumental in maintaining consistent performance, even amid challenging market conditions.

Between the unit price of INR 2 Cr and INR 5 Cr Source Prop Equity database

Key Ongoing Projects as on March 31,2025

Particulars	Number of Projects	Land (in acres)	Saleable Area 1 (in mn sqft)
Affordable	5	42.4	4.3
Mid Income Gurugram	8	91.6	5.3
Mid Income Sohna	4	26.3	0.6
Others Retail/SCO	3	8.1	0.3
Total	20	168.4	10.4

Approved Projects: Awaiting Kickoff as on March 31,2025

Location	Project	Land (in acres)	Recently launched Estimated Saleable Area1 (in mn sqft)	Forthcoming Total Saleable Estimated Saleable Area 1 Area 1 (in mn sqft) (in mn sqft)
Sector 71, SPR	Housing, Commercial and Retail	93	2.1	14.9	17.1
Sector 37D, DXP	Group Housing & LowRise Floors	53	3.0	6.4	9.3
Sohna Elevated Corridor	Township LowRise Floors & Industrial Plots	140	6.1	0.7	6.8
Manesar	Township LowRise & Industrial Plots	151	2.7	0.5	3.2
Others	Housing & Retail	32	0.9	2.0	2.9
	Total	469	14.8	24.6	39.3

1 Saleable Area potential for forthcoming projects is based on best estimates as per the current zoning regulations FINANCIAL OVERVIEW

The company achieved sales growth and improved margins in FY 202425. This was driven by our focus on highmargin midincome segments. Revenue from operations stood at INR 25.00 bn in FY 202425, compared to INR 12.41 bn in the previous fiscal year. Revenue from real estate properties was INR 24.2 bn in FY 202425, against INR 11.9 bn in FY 202324.

The Company reported a positive profit after tax (PAT) of INR 1.01 bn in FY 202425. Companys net debt was INR 8.8 bn as on March 31,2025, a decrease from INR 11.6 bn on March 31,2024.

Consolidated Profit & Loss Snapshot		(INR in bn)
Particulars	FY 202425	FY 202324
Total Revenue	25.00	12.41
Total Expenses	25.33	13.20
Adjusted EBITDA	3.60	1.33
Adjusted EBITDA %	14.41%	10.75%
Profit After Tax (PAT)	1.01	0.16
PAT Margin (%)	4.04%	1.29%

Key Ratios

Location	FY 202425	FY 202324	YoY Change Reason for Change, (If the change is more than 25%)
Operating Profit Margin (%)	23.66%	21.66%	9.23% Refer point (a) below
Net Profit Margin (%)	4.04%	1.29%	213.18% Refer point (b) below
Debtors Turnover Ratio	50.65	39.69	27.61% Refer point (c) below
Current Ratio	1.18	1.23	(4.06)% Refer point (a) below
Interest Coverage Ratio	0.42	0.25	68% Refer point (b) and (e) below
Debt Equity Ratio	3.24	3.06	5.88% Refer point (d) below
Inventory Turnover Ratio	0.25	0.18	39% Refer point (e) below
Return on Net Worth	6%	2%	200% Refer point (f) below

Notes:

a. Since the change in ratio is less than 25%, no explanation is required to be furnished.

b. Increase in operating and net margin is on account of variation in the Product Mix of projects eligible for revenue recognition.

c. Variance in ratio is attributable to an increase in trade receivables during the year.

d. Variance in ratio is attributable to an increase in borrowings as the company has taken additional loan during the year.

e. Increase in ratio is due to the Company has launched two additional projects during the yearTitanium SPR and City of

Colours.

f. Variance in ratio is attributable to an increase in profit after tax during the year.

STRATEGICAL OUTLOOK

The Company is strategically placed with a healthy pipeline of launches in the coming 78 quarters, particularly, in the key micro markets Sector 71 on the Southern Peripheral Road (SPR), Sector 37D on the Dwarka Expressway and Sohna region.

RISK MANAGEMENT

Risk management is a key part of our strategy and planning. Our Risk Management Framework is certified for conformance as per ISO standard 31000:2018 Risk Management Guidelines. This helps us identify, assess, monitor, and reduce risks tied to our business and operations.

Some of the main risks and how we addressed them during the year are listed below:

Risks		Impact	Mitigation Process
A		Consumer behaviour and purchasing power may be impacted by an economic slowdown. Other macroeconomic factors also play a role. Such changes could negatively affect our business and its growth.	Despite challenges, the global economy is expected to sustain moderate growth, while the Indian economy continues to demonstrate resilience and a promising outlook. Our strong execution track record and ongoing construction efforts have been crucial in sustaining consistent sales and performance, even in challenging market conditions.
Macroeconomic Risk
A Inflation Risk		Elevated inflation could increase land prices. Increases in the costs or shortages of construction materials, labour, and equipment could also affect our estimated construction costs and timelines. This may lead to cost overruns. Such events could significantly impact our operations, profitability, and cash flow.	We take proactive measures to minimise the impact of inflation on operations by maintaining a prudent and cautious approach. Despite ongoing commodity cost inflation, Signatureglobal has effectively absorbed price escalations. We prioritise obtaining timely and costeffective supplies of construction materials and maintaining optimal inventory levels of key commodities like cement, steel, aluminium, etc. Additionally, we have adopted Aluminium formwork technology to reduce construction time, giving us a competitive advantage.
Risks	Impact		Mitigation Process
Interest Rate Risk	Our business is capitalintensive, requiring significant spending for real estate project development. We typically meet working capital needs through external debt from banks and financial institutions. This makes us highly dependent on real estate financing availability.		Our quick turnaround at predictable costs allows us to execute efficiently on a larger scale, generating cash flows in a short period to support further developments. We also aim to diversify our real estate investments across different property types to help mitigate interest rate risk.
	We also face market risk from interest rate fluctuations on our borrowings. This may negatively impact our earnings and the overall returns from real estate investments. Furthermore, high mortgage interest rates may discourage potential buyers from investing in properties.
ca Concentration Risk	Our real estate development activities are mainly in the DelhiNCR region. This includes the Gurugram and Sohna micromarkets in Haryana. We also depend significantly on our residential development business. Fluctuations in market conditions could affect our ability to sell projects at target prices. This may negatively impact our financial state and operational results.		We strive to diversify real estate investments across different property types to help us mitigate concentration risk. We have strategically expanded into the luxury housing segment, diversifying our portfolio and reducing our dependence on any single market or category.
\u2014 A Regulatory Risk	The real estate sector operates under extensive regulation. Adverse changes in government policies or the regulatory framework can negatively impact our business. Adhering to numerous laws is vital for developers. These include rules on land acquisition, property transfer, registration, and land usage. Delays in obtaining regulatory approvals or clearances could affect our project timelines.		We take proactive steps to ensure timely approvals and maintain compliance with all legal requirements. By staying updated on policy changes and having a dedicated team to manage regulatory processes, we strive to minimise delays and mitigate potential risks to project timelines.
rv o zSk Manpower Risk	Our industry is labourintensive. A shortage of skilled labour, work stoppages, or other labour issues could negatively affect our business. We also rely on contract labour. This makes it challenging to secure enough labour at reasonable costs. Such issues could impact our business prospects and operational results.		We actively manage labourrelated risks through strategic workforce planning and by establishing robust recruitment and retention strategies. By offering competitive wages and fostering a positive work environment, we aim to attract and retain skilled labour while reducing the likelihood of work stoppages and other labour issues.
Climate Risk	Inadequate preparedness for climate change may lead to significant financial losses, hinder our ability to execute strategic initiatives, and jeopardise the achievement of key business objectives, ultimately affecting our business strategy, customer experience, ESG performance, and investor confidence.		As part of promoting climate change awareness, we have formulated various environment related policies targeting reduction of GHG emissions, waste and water management, sustainable procurement etc. We leverage wellestablished reporting frameworks and disclosure standards to comprehensively assess the impact of ESG and climaterelated risks on our operations, supply chain, and customer satisfaction across progressive planning horizons.

INTERNAL CONTROL FRAMEWORK

Signatureglobal maintains an established internal control framework. It aligns with the size, scale, and complexity of its business operations. These controls support effective operational management. They also ensure regulatory compliance, protect assets, prevent fraud, and ensure accurate financial reporting.

Internal Auditors regularly monitor and evaluate these control systems. Findings and observations are promptly reported to management. This ensures timely action to mitigate risks and address any identified issues.

SUSTAINABILITY

Our operations are deeply rooted in sustainable development, aligned with economic and environmental objectives. We are committed to green building practices, energyefficient technologies, and environmentally responsible design principles that not only reduce ecological impact but also deliver longterm cost efficiencies and enhance resilience in a dynamic market landscape.

We continuously embrace innovation and adapt to emerging technologies to drive sustainable growth. Our developments incorporate advanced materials such as lowVOC paints, flyash bricks, and lowflow fixtures. As a proud member of the Indian Green Building Council (IGBC), many of our projects have been awarded IGBC Gold ratings, with a substantial number also holding EDGE certifications underscoring our commitment to global sustainability standards.

Beyond our core operations, the Signatureglobal Foundation actively supports environmental stewardship and community wellbeing. In alignment with the Swachh Bharat Abhiyan, the Foundation has facilitated the construction of public sanitation facilities and contributed to improving access to clean water through the installation of water storage tanks. These initiatives reflect our broader vision of fostering a cleaner, greener, and more inclusive future.

For further details, please refer to the ESG Report at Page No. 53 annexed to this Annual Report.

HUMAN RESOURCES

Our employees form the core of our success and business continuity. We develop employeecentric HR policies to cultivate a supportive and productive work environment. These policies also aim to advance professional growth while meeting our business objectives.

We initiate various programmes to attract and retain skilled personnel. These efforts boost employee morale and create career development avenues. Formal Monthly Corporate Induction Programme provides a deeper viewpoint of all departments functionalities. Regular training sessions improve employee skills, knowledge, and output, keeping them updated with current industry advancements. We also motivate staff through recognition and rewards. Engagement is enhanced by actively seeking and incorporating their feedback. Our dedication to an open and honest culture has supported our achievements, leading to our certification as a Great Place to Work .

As of March 31,2025, the Company including its subsidiaries had a dedicated team of 1,283 employees.

CAUTIONARY STATEMENT

This Management Discussion and Analysis includes statements that outline the Company s objectives, projections, estimates, expectations, and predictions. These are considered forwardlooking statements under applicable securities laws and regulations. The Company has conducted various assessments and analyses to form assumptions regarding future business developments. However, actual outcomes may differ from these expectations due to a range of risks and unforeseen factors.

Key factors that could influence the Company s operations include macroeconomic developments within the country and improvements in capital market conditions. Changes in government regulations, taxes, laws, and other statutes, as well as other incidental factors, could also affect results. The Company is not obligated to publicly update or revise any forwardlooking statements to account for future or probable events or circumstances.