A B Infrabuild Ltd Management Discussions

Industry structure and developments:

The infrastructure sector remains the foundational engine of Indias economic growth, guided by the national vision of Viksit Bharat 2047. The FY 2026-27 Union Budget has reinforced this trajectory, focusing on three core mandates: accelerating economic growth, fulfilling citizen aspirations, and ensuring universal access to resources.

For the current fiscal year, the government has significantly strengthened its commitment to infrastructure-led growth by increasing public capital expenditure (Capex) to ?12.2 lakh crore, up from ? 11.2 lakh crore in the previous fiscal year. This record allocation is designed to sustain a high-multiplier effect on the economy and catalyze private sector participation.

Key strategic developments influencing the sector in 2026-27 include:

De-risking and Developer Confidence: The government has introduced an Infrastructure Risk Guarantee Fund to strengthen the confidence of private developers, directly supporting operational stability in large-scale projects.

Enhanced Connectivity & Modernization: The budget has prioritized the development of seven high-speed rail corridors and the operationalization of 20 new national waterways, creating a long-term ordering pipeline for engineering and construction firms.

City Economic Regions (CERs): With an allocation of ?5,000 crore per region over five years, the Challenge Mode funding for integrated City Economic Regions is set to transform Tier-2 and Tier-3 cities into regional economic hubs, unlocking new real estate and industrial growth corridors.

Manufacturing & Equipment Support: New schemes have been launched specifically for the Enhancement of Construction and Infrastructure Equipment, alongside incentives for domestic container manufacturing, reducing dependence on imports and promoting indigenous construction capabilities.

Business Overview:

A B Infrabuild Limited is delivering excellence in civil and structural engineering with a focus on railway and urban infrastructure. Our long-standing expertise allows us to align seamlessly with the governments 2026-27 strategic priorities, particularly in rail connectivity and urban development.

Our core operational competencies continue to address the critical needs of the Indian infrastructure landscape:

Railway Infrastructure: We specialize in the development of new railway lines, gauge conversion, track linking, and the construction of new station buildings and platforms. This aligns with the national focus on improving freight and passenger logistics through rail modernization.

Urban Infrastructure: We remain a trusted partner for municipal and metropolitan authorities, such as the Municipal Corporation of Greater Mumbai (MCGM) and the Mumbai Metropolitan Region Development Authority (MMRDA). Our work in road reconstruction, widening, and the construction of pedestrian-cum-vehicular subways is essential to supporting the increased demand for urban connectivity and Ease of Living as outlined in the current budget framework.

As we move forward in FY 2026-27, A B Infrabuild Limited is committed to leveraging advanced technologies and optimizing operational efficiency to meet the heightened standards of the infrastructure sector. We continue to prioritize time-bound project execution to contribute to the nations journey toward a developed economy.

Opportunities and Threats:

The infrastructure industry presents a mix of significant opportunities and notable threats. Growth in emerging markets, increased public and private investment, and technological advancements are creating opportunities, while challenges like land acquisition, funding gaps, and environmental concerns pose significant threats. Understanding these dynamics is crucial for navigating the evolving landscape of the infrastructure sector.

O pportunities:

Government-Driven Infrastructure Push:

Continued state commitment through large-scale initiatives like the National Infrastructure Pipeline (NIP) and the Gati Shakti master plan provides a robust pipeline for projects.

Digital Transformation:

The integration of digital tools for traffic monitoring, asset performance management, and real-time project tracking is significantly improving operational efficiency.

Economic Expansion:

As India aims to become a US$ 5 trillion economy, there is a sustained, long-term demand for civil and structural works, including railways, roads, and urban infrastructure development.

China+1 Strategy & Manufacturing:

India is increasingly becoming a preferred sourcing destination for global automotive and electronics OEMs, driving the need for supportive infrastructure like industrial parks, roads, and efficient freight corridors.

Focus on Sustainability:

There is a growing demand for green infrastructure, renewable energy projects, and eco-friendly building standards, which creates new avenues for specialized construction services.

Threats, Risks and Concerns:

Cybersecurity & Digital Resilience: Cybersecurity has emerged as Indias most severe immediate systemic risk. The concentration of data and reliance on digital platforms creates single-point vulnerabilities that can disrupt power grids, financial systems, and critical infrastructure.

Geo-Economic Confrontation: Global market fragmentation due to tariffs, investment screenings, and technology restrictions is affecting capital flows and supply chain continuity.

Structural Supply Chain Volatility: Supply chain challenges are no longer viewed as temporary but as a structural phenomenon, requiring proactive ecosystem coordination over reactive contingency planning.

Energy Availability & Price Volatility: For critical infrastructure and manufacturing, energy transition risks and price fluctuations represent a major business continuity concern.

Operational & Regulatory Hurdles:

Project Execution: The pace of government projects remains a key weakness, compounded by uncertainties in the bidding process.

Regulatory Dependencies: The business relies heavily on obtaining and renewing licenses and permits. Failure to secure these, or changes in government policy/budgetary allocations, directly impacts financial performance.

Land & Clearances: Navigating land acquisition and complex environmental regulatory compliance remains a consistent challenge that can cause delays and cost overruns.

Particulars	For the year ended 31 st March, 2026	For the year ended 31st March, 2025
Total Revenue	25,954.51	20,993.57
Total expenses	23,328.01	18,741.84
Profit before exceptional items and income tax	2,626.50	2,251.73
Exceptional item	1.10	66.14
Profit before tax	2,625.41	2,185.57
Tax Expenses	691.28	573.41
Profit after tax for the period	1,934.43	1,612.16
Basic and Dilutes earning per share	0.30	0.34

Material developments in Human Resources/Industrial Relations front, including number of people employed.

The Company continuously focuses on aligning organizational objectives with the efforts facilitated by an effective organization structure. New talents are hired at the leadership as well as operating levels, costs are optimized and improved and automated methods for achieving better controls and efficiency at the project sites were deployed. The manpower numbers were contained to the actual requirement of the projects linked to work progress. The Company has comprehensive safety plans in place for all workers and clear protocols to follow in the event of injuries.

The company continues to give utmost importance to Human Resources Development and keeps relations normal. As on 31st March, 2026, there were 34 employees in the Company including 4 Directors of the Company.

Industrial relations continue to be harmonious and normal.

Ratios	31.03.2026	31.03.2025	% variation	Remarks
Debtors Turnover	3.32	5.85	(43.25)	Due to increase in revenue from operations during the year
Inventory Turnover	2.13	2.51	(15.14%)	N.A.
Interest Coverage Ratio	4.30	5.46	(21.25 %)	N.A.
Current Ratio	1.76	1.69	4.14%	N.A.
Debt Equity Ratio	1.14	1.26	(9.52%)	N.A.
Operating Profit Margin (%)	14.22 %	14.12 %	0.71%	N.A.
Net Profit Margin (%)	7.75 %	7.74 %	0.13%	N.A.
Return on Net Worth	0.11	0.15	(26.67%)	Due to increase in revenue from operation during the year

By Order of Board of Directors For A B INFRABUILD LIMITED
Sd/-	Sd/-
Amit Mishra	Bharatkumar Parmar
Managing Director	Whole time Director
DIN-03388129 Date : 21.08.2026 Place : Mumbai	DIN: 07645422