A2Z Infra Engineering Ltd Management Discussions

1. Economy Overview A. Global Economy

Global growth is projected to be 3.0 percent in 2026 and 3.4 percent in 2027, down from the average of 3.5 percent observed in 2024-25 and broadly unchanged on a cumulative basis compared with the forecasts in the April 2026 World Economic Outlook (WEO). The modest slowdown reflects the effects of the war in the Middle East being partly offset by accelerated demand-driven momentum in the global technology cycle thanks to advances in artificial intelligence (AI) and its adoption. The impact varies widely based on countries exposure to the war and position in the technology value chain. Global trade growth is also expected to moderate from 5.0 percent in 2025 to 3.5 percent in 2026 before recovering to 4.3 percent in 2027, reflecting the impact of tariffs, adjustments in trade and production linkages, and continued growth in technology-related trade. Energy exporters outside the conflict zone benefit from favorable terms of trade, whereas economies plugged into the technology-led upturn experience stronger activity even if they are energy importers. Inflationary pressures have re-emerged, with Global headline inflation is expected to increase from 4.1 percent in 2025 to 4.7 percent in 2026 before declining to 3.9 percent in 2027, indicating that the disinflation trend in place since the beginning of 2024 has stalled. Energy and other input costs also remain elevated, with crude oil prices projected to increase by 32 percent and natural gas prices by 22 percent in 2026 compared with 2025.

In emerging market and developing economies, growth is projected to slow to 3.8 percent in 2026 before recovering to 4.5 percent in 2027, with heterogeneous revisions reflecting differences in commodity dependence, geographic exposure, remittances and tourism receipts, and position in the global technology value chain. China s 2026 growth is projected to slow to 4.6 percent. India remains among the fastest growing major economies, with growth projected at 6.4 percent, supported by strong momentum in private consumption and services activity. The global outlook from remains subject to significant geopolitical developments, energy-price movements, trade-related measures and developments in the technology cycle, with the impact varying across economies depending on their exposure to these factors.

Source: IMF — World Economic Outlook Update, July 2026: Global Economy in Crosscurrents of War and Technology

B. Indian Economy

India has steadily evolved into one of the fastest-growing major economies, offering a vibrant and welcoming environment for investors from around the world. According to the latest estimates of the Ministry of Statistics and Programme Implementation (MoSPI),26India s real GDP grew by 7.7% in FY2025 26, while nominal GDP increased by 8.9%. Real GVA grew by 7.9%, reflecting broad-based expansion across economic activities. India is primarily a domestic demand-driven economy, with consumption and investments contributing to 70% of the economic activity. With India s economy showing resilient growth, supported by strong domestic demand, policy reforms, and a healthy investment pipeline, several new projects and developments are underway across key sectors. The World Bank has highlighted the importance of sustaining growth while addressing poverty, inequality and employment challenges to ensure that economic gains are broadly shared. India s industrial activity continued to witness steady expansion in March 2026, with the Index of Industrial Production (IIP) growing by 4.1% year-on-year, supported by sustained momentum across key sectors. The manufacturing sector recorded a 4.3% increase, while mining expanded by 5.5%, reflecting strength in core industrial segments. Electricity generation also remained positive at 0.8%, contributing to overall industrial performance. The IIP index rose to 173.2 in March 2026, up from 166.3 in March 2025, indicating continued expansion in India s industrial base. Within manufacturing, 14 out of 23 industry groups recorded growth, with key contributors including basic metals, motor vehicles and machinery & equipment, highlighting broad-based industrial activity. India s economic outlook remains robust, supported by strong macroeconomic fundamentals, resilient domestic demand and sustained investment momentum. The economy continues to rank among the fastest-growing major economies globally, driven by broad-based expansion across manufacturing, services and infrastructure, alongside steady improvement in industrial and business activity. India s external position remains broadly manageable, supported by substantial foreign exchange reserves and continued capital inflows, although the widening merchandise trade deficit and evolving global conditions remain areas to monitor. Domestic demand continues to act as a key anchor, supported by stable inflation, rising mobility and travel activity, healthy tax collections and strong participation from domestic institutional investors.

Ongoing government initiatives to boost manufacturing, infrastructure development, clean energy and investment are further strengthening the foundation for sustained growth.

Source: Investment in India / Market Trends, Sectors & Opportunities Source : MoSPI – GDP and IIP statistics Source: Indian Economy Growth Rate, GDP & Economic Structure Insights / IBEF

2. Industry Overview: Market Trends and Opportunities

This section covers, in detail, the three principal industries in which the Company s Strategic Business Units operate

Engineering, Procurement & Construction (EPC), covering both Power Transmission & Distribution (T&D) and Telecom infrastructure; Facility Management Services (FMS); and Municipal Solid Waste Management (MSW) together with relevant global and Indian market data.

A. Engineering, Procurement, And Construction (EPC)

The Indian Engineering, Procurement and Construction (EPC) industry is expected to maintain a healthy growth trajectory, supported by continued government infrastructure spending, increasing private-sector capital expenditure, industrial expansion, and investments across transportation, energy, utilities and other infrastructure segments. Government-led infrastructure development remains an important driver of EPC demand, with continued investments in roads, railways, airports, bridges, power and other public infrastructure supporting project opportunities and order inflows. At the same time, increasing Competitive Bidding (TBCB) private-sector investments in manufacturing, industrial facilities, energy, commercial infrastructure and other capital-intensive projects are broadening the addressable market for EPC contractors. Recent industry analysis from CRISIL also indicates that large, see diversified 9–11% revenue growth , supported by infrastructure capital expenditure, healthy order books and faster project execution. EPC Source: CRISIL Revenue of large, diversified companies to grow 9 11%

A.1 Power Transmission & Distribution (T&D) — Global and Indian Scenario Global Scenario: Globally, the electricity transmission and distribution market was valued at approximately USD 397.99 billion in CY 2025 and is projected to reach USD 410.8 billion in CY 2026 and about USD 580.51 billion by CY 2034, registering a CAGR of 4.42% during 2026-34, with Asia-Pacificaccounting for over 42.78% of global market in 2025, driven by rapid industrialisation, urbanisation, increasing electricity demand, renewable-energy integration and continued investment in grid expansion and modernization across major economies including China, India, Japan and Australia.

Indian Scenario : India s Power Transmission & Distribution (T&D) EPC market specifically was valued at approximately USD 14.68 billion in CY 2025 and is projected to reach USD 35.20 billion by CY 2035, representing a CAGR of approx. 9.34% during 2026-2035, according to industry estimates by Astute Analytica. The growth outlook is supported by the planned integration of over 500 GW of renewable capacity by 2030, expansion of the Inter-State Transmission System (ISTS), Intra-state Transmission System (InSTS), grid modernisation, and increasing deployment of advanced transmission technologies, and increasing High Voltage Direct Current (HVDC) system. The Government of India has planned transmission infrastructure to integrate over 500 GW of renewable energy capacity by 2030 and over 600 GW by 2032. India s overall power market (installed generation capacity) is estimated at approximately 619 GW in CY 2026 and is projected to reach approximately 893 GW by CY 2031, representing a CAGR of approximately 7.6% during 2026-2031, according to Mordor Intelligence. The continued expansion of generation capacity, increasing electricity demand and the growing share of renewable energy are expected to drive corresponding investments in transmission and distribution infrastructure.

The competitive landscape of the India power transmission and distribution EPC market is shaped by the coexistence of dominant public sector enterprises and increasingly active private sector participants. The Tariff-Based has played a major role in opening the sector to broader participation by promoting competition and transparent procurement in transmission project development. Government policy and regulatory support play a critical role in driving the expansion of the India power transmission and distribution EPC market. The National Electricity Plan outlines a long-term roadmap for strengthening the country s power infrastructure and integrating renewable energy capacity. According to the plan, approximately Rs 9.15 lakh crore is expected to be invested in transmission infrastructure by 2032. These investments are intended to enhance grid resilience, expand transmission capacity, and support the growing share of renewable power in India s energy mix.

The Indian power transmission and distribution EPC market is entering a phase Triple Transition, involving simultaneous shifts in power generation, electricity consumption patterns, and grid infrastructure development. Renewable energy expansion is altering generation locations, while urbanization and electrification trends - including the growth of electric vehicles - are reshaping demand patterns. These transformations require extensive upgrades to both transmission and distribution networks, creating new opportunities for EPC contractors and infrastructure developers.

Source: https://www.fortunebusinessinsights. com/electricity-transmission-and-distribution-market-106366 Source: Astute Analytica / Research and Markets India Power T&D EPC Market

A.2 Telecom Sector — Global and Indian Scenario Global Scenario: The global telecommunications sector continues to undergo significant transformation, driven by the rapid growth in data consumption, increasing smartphone penetration, expansion of broadband connectivity and the continued deployment of advanced mobile technologies. The evolution of 5G networks, alongside the emergence of 5G Standalone, 5G-Advanced, artificial intelligence-enabled network management and Internet of Things applications, is expected to support the next phase of digital infrastructure development. According to the GSMA, the global mobile industry is increasingly focused on advancing 5G capabilities and developing enterprise applications across areas such as manufacturing, transport, energy, healthcare and smart infrastructure. The GSMA s Mobile Economy 2026 estimates that mobile technologies and services contributed approximately USD 7.6 trillion to global GDP in 2025 , equivalent to 6.4% of global GDP , with this contribution projected to increase to approximately USD 11.3 trillion by 2030 , supported by the increasing adoption of 5G, AI and other digital technologies.

Indian Scenario : India s telecommunications sector continues to demonstrate structural growth, supported by increasing digital connectivity, broadband adoption and the transition toward advanced mobile networks. The market is increasingly characterised by wireless and mobile-based connectivity, with continued investment in network capacity, coverage, fibre infrastructure and service quality. Recent data released by the Telecom Regulatory Authority of India (TRAI) indicates continued growth in India s overall telecom subscriber base, with the industry increasingly shifting toward wireless and mobile-based connectivity. As of June 2026, the total telephone subscriber base stood at approximately 1,348.08 million, comprising 1,300.25 million wireless subscribers and 47.82 million wireline subscribers . The wireless subscriber base increased by 5.79 million during June 2026, while the wireline subscriber base declined by 0.81 million, or 1.67%, from 48.64 million at the end of May 2026 to 47.82 million at the end of June 2026 .

Broadband subscribers, including M2M cellular mobile connections, increased to approximately 1,087.50 million during the month. These trends highlight the continued predominance of wireless connectivity, while also underscoring the importance of high-capacity broadband and supporting digital infrastructure. The evolution of India s connectivity landscape is expected to sustain demand for telecom infrastructure, particularly across 5G network deployment, fibre backhaul, network densification, transmission infrastructure, data centres and associated power and passive infrastructure. While the decline in traditional wireline subscribers represents a structural shift in the market, the underlying requirement for high-capacity fibre and digital infrastructure continues to increase as mobile networks require greater bandwidth and enterprises and consumers consume increasing volumes of data. structural India s telecom infrastructure requirements are also being shaped by the broader digitalisation of the economy. The expansion of cloud computing, digital services, connected devices, enterprise connectivity and AI-enabled applications is expected to increase the requirement for reliable and scalable communications infrastructure. Accordingly, telecom sector growth is increasingly linked not only to subscriber additions but also to the continuous expansion, modernisation and upgrading of network capacity, coverage and performance. For EPC and infrastructure service providers, this evolution presents opportunities to participate across the telecom infrastructure value chain, including engineering, procurement, project execution, fibre deployment, network infrastructure and associated electrical and civil works. The sector s growth is therefore increasingly linked not only to subscriber additions but also to the expansion and upgrading of network capacity, coverage and quality. The Group sees strong long-term opportunities in its EPC business, supported by India s expanding power infrastructure, grid modernisation, electrification and telecom network requirements. Building on its established expertise in Power T&D and Telecom EPC , the Group will focus on technology-enabled execution, complex infrastructure projects and selective expansion into emerging opportunities such as renewable and associated power infrastructure. The Group remains committed to strengthening its EPC order pipeline and execution capabilities to deliver sustainable growth in the coming years. Source: GSMA, The Mobile Economy 2026 Source: https://www.trai.gov.in/notifications/press-release/trai-releases-telecom-subscription-data-june-2026.

B. Facility Management Services (FMS) Industry

Facility Management (FM) refers to the integrated management of buildings, infrastructure, workplace environment and associated support services to ensure that businesses and organizations operate efficiently, wide range of services, including maintenance, housekeeping, security, energy management, space planning, and administrative assistance. The purpose of facility management is to increase productivity, optimise cost, and improve the overall operation of businesses, residential complexes, healthcare facilities, educational institutions, and industrial facilities and other support services. In India, FM has progressed from conventional housekeeping and maintenance to a strategic function that employs technology, environmental practices, and data-driven decision-making.

The objective of facility management is to enhance operational efficiency, optimise costs, maintain safety and service standards, and support the effective functioning of diverse facilities, including commercial and residential properties, healthcare institutions, educational establishments, industrial facilities and other built environments.

Global Scenario: Globally, the Facility Management (FM) industry is evolving from traditional maintenance and support functions toward integrated, technology-enabled and outcome-based solutions. Increasing and adoption of AI, IoT, cloud-based platforms, predictive maintenance and smart building technologies is enabling organizations to improve operational efficiency, optimize energy consumption and enhance occupant experience. Sustainability and ESG requirements, hybrid workplace models, outsourcing of non-core activities and the need for resilient infrastructure are further supporting demand for professional facility management services across major markets.

Indian Scenario: India s facility management market is projected to witness a CAGR of 12.75% during the forecast period FY2026-FY2033, growing from a total addressable market (TAM) size of USD 54.81 billion in FY2025 and is projected to reach approximately USD 138.04 billion by FY2033. The facility management market in India is growing rapidly, owing to the rapid growth of urbanization, infrastructure, and changing business needs. The facility management domain is a broad domain which provides services such as maintenance, operations, security, and energy management for built environments to ensure they function and perform efficiently. The technological developments in IoT, AI, and automation for predictive maintenance, optimizing resource use, and efficient cost management are factors propelling the demand. The other key drivers include the growth of commercial real estate, hybrid workspaces, and government initiatives such as the Smart Cities Mission, which focuses on sustainable and inclusive urban development. Increasing adoption of green building practices and compliance with regulatory frameworks are also driving demand for professional facility management services. The market has witnessed tremendous growth due to increasing outsourcing trends, and the integration of cloud-based solutions is again reshaping the landscape of this industry. IT, healthcare, and retail sectors significantly influence the demand for integrated facility management services for operational excellence. This dynamic market is poised for sustained expansion as businesses prioritize safety, sustainability, and while embracing innovative solutions to meet evolving infrastructure needs across India. Businesses are increasingly acquiring competitors entirely as part of their growth strategies, while many are also partnering with technology firms to enhance their services and long-term efficiency.

Key Industry Trends:

Technology-enabled services delivery:- The Indian facility management market is expected to witness increasing adoption of smart technologies, including IoT, AI, automation and digital platforms, enabling real-time monitoring, predictive maintenance, improved service quality and greater operational efficiency.

Sustainability and energy efficiency: Increasing emphasis on sustainability ,energy efficiency environmentally responsible building operations is expected to support demand for energy-efficient technologies, resource optimisation and green facility management practices, in line with applicable standards and regulatory requirements.

Integrated Facility Management (IFM):

Organisations are Increasingly adopting Integrated facility management services to consolidate multiple services under a single service provider, streamline operations, improve accountability and achieve greater efficiency and cost optimisation .

Urbanisation and infrastructure development:

Continued urbanisation, expansion of commercial and residential real estate, and growth in sectors such as healthcare, hospitality and institutional infrastructure are expected to support demand for organised and professional facility management services.

The Group s Facility Management Services business provides integrated, technology-enabled solutions covering technical services, workplace management, maintenance and other support services. Going forward, the Group will focus on expanding its presence across corporate, institutional and government clients, while leveraging technology and integrated service capabilities to deliver cost-effective and efficient facility management solutions.

Source: IFMA 2026 Global Facility Management Trends and Insights

Source : India Facility Management Market Share, Trends & Industry Insights 2033

C. Municipal Solid Waste Management (MSW)

Municipal Solid Waste Management (MSW) encompasses the systematic collection, segregation, transportation, processing, recycling, treatment and scientific disposal of municipal solid waste generated from households, commercial establishments, institutions and other sources within municipal areas. The objective of MSW management is to ensure the safe and efficient handling of waste, maximise resource recovery and recycling, minimise theiroperations the environmental impact of waste disposal, and contribute to improved public health and sustainable urban development.

Global Scenario : Globally, municipal solid waste management is becoming an increasingly important component of sustainable urban development, driven by population growth, rapid urbanisation, rising consumption and increasing waste generation. According to the World Bank s latest What a Waste 3.0 report estimates that the world generated approximately 2.56 billion tonnes of municipal solid waste in 2022, with waste volumes projected to increase by approximately 50% to 3.86 billion tonnes by 2050 under a business-as-usual scenario. This is increasing the focus on improved waste collection and treatment infrastructure, recycling, composting, resource recovery, waste prevention and circular-economy approaches. Governments and municipalities are also seeking greater private-sector participation and investment to improve waste-management systems and reduce environmental and climate impacts.

Indian Scenario : The India s Solid Waste Management Market is undergoing significant rapid urbanization, rising population density, and increasing environmental awareness drive demand for efficientand sustainable waste management practices. Cities across India are shifting from outdated collection methods toward more structured waste segregation, scientific Moreover, smart city initiatives are integrating digital waste tracking, GPS-enabled collection vehicles, and data-driven monitoring to improve transparency. Additionally, waste-to-energy projects are gaining traction, with municipal bodies exploring technologies like biomethanation, pyrolysis, and incineration to convert waste into usable power. The India s Solid Waste Management Market is expected to witness steady growth, supported by government initiatives, increasing investment in waste management infrastructure and greater participation of private-sector operators. Government programs like Swachh Bharat Mission, extended producer responsibility (EPR) rules, and policies promoting plastic waste management are pushing cities and industries to adopt structured waste management systems. Moreover, rising industrial and commercial waste streams from retail, hospitality, and manufacturing sectors are creating opportunities for specialized waste treatment and recycling services. Additionally, infrastructure development in tier-2 and tier-3 cities is improving waste collection networks, transportation fleets, and processing capacity. By 2031, the India s Solid Waste Management Market will be shaped by increasing reliance on digital technologies and smart city solutions. Waste-to-energy conversion will emerge as a key revenue stream, reducing landfill dependency and generating renewable energy. Circular economy principles will drive recycling and material recovery as core practices. Governments will push stricter compliance measures to ensure environmentally responsible disposal. The market will expand significantly, balancing economic growth with sustainability priorities. IMARC estimates that the India s solid waste management market was valued at USD 13.0 billion in 2025 and is projected to reach USD 21.9 billion by 2034, registering a CAGR of 6.0% during 2026 2034.

India Solid Waste Management Market Trends

Adoption of Technology-Enabled Waste Management Solutions

In India, digital tools such as IoT sensors, AI-driven sorting, and GPS-enabled collection vehicles are enhancing These technologies improve route optimization, reduce operational costs, and enable real-time tracking of waste streams. Municipalities are increasingly investing in smart waste systems as part of urban modernization. Adoption of digital platforms also promotes data-driven policy making. This trend will accelerate as smart city programs expand across India.

Growth in Waste-to-Energy Projects

Rising energy demand and landfill constraints are fueling investments in waste-to-energy facilities in India. These projects convert municipal solid andadvanced treatment waste into electricity and heat, offering dual benefits of waste reduction and renewable power efficiencyand generation. Governments are providing incentives to encourage private sector participation. The approach supports both sustainability goals and energy diversification strategies. Waste-to-energy is becoming a cornerstone of integrated waste management.

Increased Focus on Recycling and Material Recovery

Recycling initiatives in India are gaining momentum as part of the circular economy movement. Governments are enforcing stricter policies to divert waste away from landfills. Companies are also investing in advanced sorting and recycling technologies. Public awareness campaigns are increasing household participation in recycling programs. This trend ensures resource conservation and reduces environmental impact.

Public-Private Partnerships in Waste Management

Governments in India are increasingly collaborating with private companies to address growing waste management challenges. These partnerships bring in expertise, innovation, and funding for infrastructure projects. PPP models are being used to develop recycling plants, waste collection systems, and landfill alternatives. The collaborations are improving service quality. This trend strengthens the overall waste management ecosystem.

Sustainability-Driven Policy Reforms

Regulatory frameworks in India are becoming stricter to ensure sustainable waste management. Policies are focused on reducing landfill usage and encouraging recycling and composting. Extended producer responsibility (EPR) regulations are being applied to industries generating high volumes of waste. Governments are pushing industries to adopt eco-friendly packaging and disposal practices. These reforms will reshape industry behavior and support market growth.

Our Group is a key player in the Municipal Solid Waste Management sector and remains well positioned to benefit from the growing demand for scientific and sustainable waste management solutions. Going forward, the Group will focus on technology-driven MSW projects, advanced waste processing, resource recovery and waste-to-energy solutions , leveraging the latest technologies to enhance operational efficiency, enhancing resource recovery and deliver sustainable outcomes.

Source: World Bank What a Waste 3.0 Source: IMARC India Solid Waste Management Market Size, Share, Trends and Forecast 2026 2034 Source: Mordor Intelligence India Waste Management Market Size and Share Analysis 2031 Source: IMARC India Waste-to-Energy Solutions Market 2026–2034

3. Business Segment Review Company Overview

A2Z Infra Engineering Ltd., the flagship listed entity of the A2Z Group, was established in 2002. The Group began its journey as a Facility Management Services (FMS) provider player and has since then evolved into a diversified operating through three Strategic Business Units (SBUs) Engineering Services (ES), Facility Management Services (FMS) and Municipal Solid Waste Management (MSW). It primarily operates in the Engineering Procurement & Construction (EPC) sector for Infrastructure projects, specializing in Telecom Infrastructure Development projects. The Group has cultivated professional expertise and established a proven track-record in this space. The Group has a presence in India and selected overseas markets, including Nepal, Uganda and Tanzania.

In Facility Management Services, the Group provides housekeeping, security, hospitality, workforce contracting, maintenance and related services. Over the years, the Group has also expanded successfully into other adjacent businesses such as the high growth solid waste management. The solid waste management services to urban local bodies cover Collection & Transportation (C&T) and Processing of waste. The Group has been successful in developing synergies between each of the business segments. These products and supply of ancillary service and equipment needs of its other businesses are the other businesses that the Group operates. The Group s business portfolio is organized into three Strategic Business Units (SBUs) Engineering Services (ES), Facility Management Services (FMS) and Municipal Solid Waste (MSW). The ES segment primarily constitutes the entire infrastructure EPC business and MSW segment includes the solid waste management offering.

With a robust presence both in India and select international markets across South Asia and Africa, A2Z Group has built a strong reputation for successfully executing complex and critical infrastructure projects. The Group s strength lies in its professional leadership, well-structured operational framework, and a skilled workforce committed to delivering excellence across functions.

A. Engineering Services (ES)

The Engineering Services (ES) SBU of the Company undertakes EPC projects for the Telecom and the Power Transmission & Distribution ( T&D ) sub-sectors of the infrastructure. Under the Power T&D infrastructure sub-sector projects, the Company mainly works on the turnkey projects providing services ranging from testing, integrated design, construction, installation and erection which is concluded with project commissioning. The Company has strong industry reputation of delivering on-time innovative solutions that are focused conserving energy by minimizing T&D losses. We offer customized solutions catering to the needs of domestic and global patrons. This approach of the Company helps its clients in achieving financial savings despite higher power consumption. Over the years, the Company has across group entities delivered multitude of projects in this space with operational challenges such as inclement weather and extremities, complex topography, short timelines, and multi-location delivery. The major areas addressed by the Company in the Power T&D sector include:

Rural Electrification,

Railway Overhead Electrification,

Reduction of AT&C losses, feeder renovation,

Underground cabling, feeder segregation,

Installing High Voltage Distribution System ( HVDS ) and Low Voltage Distribution System ( LVDS ) distribution lines and transmission lines.

The Company has its overseas presence in Nepal, Uganda and Tanzania.

We have completed projects in various states of India including Jammu & Kashmir, Rajasthan, Odisha, Bihar, Arunachal Pradesh, Jharkhand, Kerala, Chhattisgarh, Haryana, Uttar Pradesh and Himachal Pradesh. In the Telecom sub-sector, the Company undertakes EPC based development and maintenance projects, primarily for Optical Fibre Cable (OFC) laying & maintenance work. The Company offers turnkey

31 solutions that encompass all services related to OFC network implementations mentioned below:

Project Management

Materials Planning

Technical Site Survey

Logistics Management

Network Implementation and Integration

Supply and Installation of Equipment

Telecom Infrastructure Operation & Maintenance Services

Updates:

The ES SBU contributed 29.48% or 11,393.66 lakhs to the total operating revenues of the Company for FY26 as against 14.44% or INR 4,854.93 lakhs during FY25.

The Company continues to selectively pursue profitable, feasible and sustainable projects, while evaluating opportunities in 5G telecom infrastructure, water and sewage distribution networks, gas distribution networks, and Smart Cities / Metro-linked infrastructure, and in Fixed Asset Management / O&M services.

B. Facility Management Services (FMS)

As the first business stream, the FMS business has remained a mainstay and strength of the Company. The Company offers multiple facility management services under the FMS SBU. The integration of multiple services under one roof, positions the Company strongly in industry which is progressively increasing the pie of Integrated Facility Management Services. The Company s wide array of services are well positioned to serve a wider set of facilities like corporate offices, malls, railway stations, railway coaches, airports, ports, other commercial establishments, monuments, parks and beaches. Our patrons include aboriginal and global MNC s, Indian Companies, PSU s and Government sector. To further strengthen its technology-enabled service delivery and enhance operational efficiency, the Company has also launched the FMEdge App , a digital platform designed to facilitate employee attendance management and enable a range of employee-related services. The FMEdge App supports streamlined, technology-driven workforce management and improves accessibility, transparency and efficiency in the delivery of facility management operations. The integration of digital capabilities with its comprehensive service portfolio further strengthens the Company s position as an integrated and technology-enabled facility management service provider.

The origin business of the Group continues to be a strong vertical.

Our Services include:

Integrated Facility Management Services

Mechanized & High-Pressure Cleaning Services.

Manpower Supply & Workforce Management

Building Operations & Maintenance (BOM)

Electrical & Utility Maintenance Services

Comprehensive Annual Maintenance Contracts

Pest Control & Hygiene Management

Pantry, Hospitality & Support Services

Railway & Transit Facility Support Services

Facility Helpdesk & Service Management

Energy & Resource Management

The company is strategically focused on expanding its Facilities Management Services (FMS) business over the upcoming financial years. This growth initiative aims to strengthen the company s market presence, broaden its service portfolio, and drive sustainable revenue growth by capitalizing on increasing demand for integrated facilities management solutions.

Updates:

The FMS business revenues stood at INR 18,643.40 lakhs for FY26, compared to INR 21,341.73 lakhs during FY25.

FMS business contributed 48.24% to the total revenues of the Company during FY26.

The Company continues to execute existing FMS contracts.

The Company will continue to focus on the FMS business and selectively pursue projects offering attractive profitability and sustainable commercial potential, while maintaining a disciplined approach to project evaluation and execution.

C. Municipal Solid Waste Management (MSW)

The Company had ventured in the high growth potential business of Municipal Solid Waste Management in the year since 2007. Under the MSW SBU, the Company (along with its subsidiaries and associates) works with urban local bodies on Collection & Transportation (C&T), segregation and processing of municipal solid waste, largely in north India, aligned with the Swachh Bharat mission.

The Company s comprehensive MSW services include collection, transportation, treatment, and disposal of solid waste. Over the recent years, the Company has further narrowed down its focus on Collection and Transportation of municipal solid waste. The mandates are won by the SBU not only based on competitive pricing, but also because of the technology used in collection, treatment and disposal through scientific methods.

Updates:

The Company continued to deliver on the commitments under the existing contracts and is exploring select opportunities of higher profitability and better feasibility.

MSW segment revenue grew to INR 8,606.73 Lakhs in FY 26 from INR 7,430.09 lakhs in FY 25. During FY26, MSW SBU contributed 22.27% to the total revenue of the Company.

4. Financial Review — FY 2025-26

The Company recorded consolidated turnover of INR

38,643.79 lakhs in FY 2025-26, compared to INR 33,626.75 lakhs in FY 2024-25, representing a year-on-year growth of approx. 14.92%. The growth was primarily from the attributable to a significant ES segment, which rose from INR 4,854.93 lakhs to INR 11,393.66 lakhs, supported by the completion of work and final billing in various projects. The MSW segment also recorded healthy growth of approx. 15.80%. However, the overall improvement in turnover was partly offset by margin compression across segments.

During FY 2025-26, the Group s Operating Profit (EBITDA before Other Income) stood at INR 868 lakhs, compared with INR 865.00 lakhs in FY 2024-25, representing a marginal increase of approx. 0.35%. The relatively modest growth in operating profit, despite approx. 14.92% increase in turnover, reflects the impact of margin compression across segments. Consolidated PBT before exceptional items and tax declined to INR 1,282 Lakhs (FY 2025-26) from INR 1,537 Lakhs (FY 2024-25), a fall of 16.59%, primarily due to higher cost of material consumed. The Group recorded a net exceptional loss of INR 517 Lakhs in FY 2025-26 against a net exceptional loss of INR 533 Lakhs in FY 2024-25.

Consolidated profit before tax accordingly declined to INR 766 Lakhs (FY 2025-26) from INR 1,004 lakhs (FY 2024-25), a fall of 23.75%. However, consolidated net profit for the year increased to INR 524 lakhs (FY 2025-26) from INR 103 lakhs (FY 2024-25), an increase of 409%.

Segment Revenue

Key Changes in Financial Ratios

Parameter	FY 2025-26	FY 2024-25	Change	Explanation
Current ratio	0.83	0.77	7.82%	No Major Variance
Debt-equity ratio	1.94	2.03	(4.41)%	No Major Variance
Debt service coverage ratio	(2.64)	0.35	(850.47)%	Due to borrowings taken in current year.
Return on equity ratio	0.11	0.03	270.57%	Due to higher profit in current year as compared to previous year.
Trade receivables turnover ratio	4.18	2.58	62.03%	Due to higher revenue in current year
Trade payables turnover ratio	0.76	0.51	51.30%	Due to higher cost in current year.
Net capital turnover ratio	(6.09)	(3.49)	74.40%	Due to increase in revenue in current year
Net profit ratio	0.01	0.00	340.48%	Due to higher profit in current year as compared to previous year.
Return on capital employed	0.12	0.15	(22.98%)	No Major Variance

5. Business SWOT Analysis

Strengths	Weakness
Diversified business portfolio.	Over-reliance on B2G business.
Experience of working with large and renowned clients on challenging projects	High working capital and labour intensity of businesses.
Differentiated organizational capabilities across business segments through technology and processes.	Multi-pronged capital investment due to diversified business.
Compliance and Corporate Governance	Adverse inflow.
Illustrious track record created over 20+ years.
Fungibility of resources across segments.
Sizeable trained and skilled workforce.
Innovation capabilities
Reduced debt of the company

Opportunities	Threats
Recapitalising and Debt Restructuring	Competition gaining inroads in segments of our operation due to increased demand, availability of funds and advent of technology.
Increasing demand for Office spaces in view of \u2018 hybrid \u2019 working approach and increasing share of Grade A properties leading to greater demand for professional FMS companies.	Upgrade of existing infrastructure due to stressed balance sheets of Telecom companies.
Heightened sense of cleanliness and hygiene, post pandemic with increased awareness for the same.	Repeated failures in nursing SEBs back to financial health may result in stoppage of investments in power generation, transmission, and distribution infrastructure.
Increasing power generation capacity in traditional and renewable sector.
5G rollout in telecom sector.
Government policies promoting cleanliness, sanitation, and basic amenities like toilets, housing, piped water, Swachh Bharat Abhiyaan and impetus from Digital India.
Private involvement in railways, airports and other government- controlled infrastructure may increase demand for professional FMS players.
Increasing demand and suitability of Integrated Facility Management Services, opening up opportunities for large, diversified FMS services providers.

6. Enterprise Risk Management

The Company at group level operates in various sectors and has established a robust enterprise risk management framework to identify, assess and mitigate risks across its operations. With projects being executed across multiple geographies, the Company is exposed to a diverse range of risks. The Company follows a carefully framed risk management framework that covers identification, assessment, and mitigation of risks. The Company s Risk Management frame work encompasses all of the Group s businesses and is integrated into the Group s business strategy, processes, planning, execution, and review activities. The framework focuses on prioritizing risks based on their probability and severity of impact. Some of the key enterprise risks identified by the Company and the corresponding mitigation measures are outlined below:

A. Macro-economic Risks

Being part of a connected world and interconnected segments of the economy, the Company faces Macroeconomic risks. These risks include the dependence of the Company s business with the country s economic developments and the market demands. The macro-economic developments can also lead to risks related to cost of capital that is directly impacted by the policy interest rates by central banks. Besides, the Government s spending and policies in response to the macro situation can also affect the industry and the Company.

Risk mitigation:

To mitigate the macro-economic risks, the Company takes a comprehensive approach with a focused effort on their mitigation. One of the mitigation measures is to diversify revenue streams and SBUs which will help mitigate the risks associated with one type of business by other business type. The company also strives to geographically diversify its project presence within India and to hedge against risks arising from local business environment. The Company has also been working on reducing the cost of capital, decreasing its debt through repayment and one-time settlements with banks and other financial institutions.

B. Customer Concentration Risks

Customer concentration in any one business or any one geography poses risks of financial setbacks in case of any large or few large customers moving away from the Company or due to delays in cash flows. In such cases there are also the risks of other clients or other projects getting impacted due to financial blockades, and absorbing of company s bandwidth in reviving such erring clients or projects.

Risk mitigation:

The Company consistently works towards diversifying its customer concentration. The Company also endeavours to diversify its markets geographically, industry-wise service offering-wise. There is a relentless effort to add more number of new clients to the Company s clientele. Another measure is to diversify customer mix between private sector clients and government clients.

C. Working Capital Risks

The Company s major business SBU of EPC requires immediate and continuous fund allocation during projects execution. The uninterrupted and cost effective availability of capital funds for project execution is imperative for business operation continuity, especially in the EPC projects. There is risk of project delays, project stalemate due to delays in securing working capital may impact project viability also due to delay or escalation in cost of capital.

Risk mitigation:

The Company has been gradually decreasing the share of EPC projects in its overall portfolio while diversifying the project streams. The reduction in EPC project would mean a lesser need of immediate funds for project execution. Besides this, the Company actively engages with leading financial institutions to arrange the required funding facilities and credit lines, as and when necessary, to support timely project execution and maintain adequate liquidity.

D. Execution Risks

The Company operates in complex operating environment for execution of its projects. The major challenges include availability of suitable manpower, raw material procurements, legal & commercial documentation, project level investments, challenging topographical and extreme weathers in some cases. The Company faces risks on account of deficiency in any of these inputs for the project execution. Any such deficiency can cause delays in project execution leading to cost escalation and penalties.

Risk mitigation:

The Company takes multiple measures to mitigate the project execution risks. The Company opts for procuring purchase adequate professional liability insurance cover. The Company puts in place stringent Standard Operating Procedures (SOPs) and Project Manuals besides consistently strengthening its Project Management capabilities. There is acute focus on procuring quality materials and having multiple sources for procuring raw material. There is an effective control system to periodically review and monitor the project progress and to take any corrective measure promptly upon a need arising. The Company may also, from time-to-time consider sharing project execution risks through partnerships.

E. Legal & Contractual Risks

Given the scale, complexity and duration of the projects, contractual disputes, claims and litigation may arise, potentially impacting project outcomes and financial performance.

Risk mitigation:

The Company follows a structured contract review and approval process, supported by dedicated legal and commercial teams. Claims and contractual matters are subject to rigorous evaluation and monitoring, while learning from past disputes are incorporated into future contract negotiations and project execution practices.

F. Talent Risks

The Company s business is human capital intensive and it requires to attract and retain talented and skilled manpower for the effective discharge or business operations and generate revenues. In case of lacks in hiring or retaining talent, the Company s business operations are likely to get impacted which may further affect the revenue generation and growth besides client servicing issues.

Risk mitigation:

The Company puts emphasis on establishing capable and professional functional leaders across all critical and important business functions. These functional leaders are entrusted with acquiring and retaining talent in close coordination and supervision of the HR team. The Company s HR team of professionals consistently works towards putting in place the best-in-class people processes, spanning sourcing, retention, career development, training, and employee engagement. The Company s also puts best endeavours to have an effective remuneration and rewards & recognition policies and practices for this objective including engaging external experts.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/ INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

The Company is engaged in human capital intensive business wherein an critical to the success of the Company s business operations. The Company s human capital boasts of balanced mix of managerial, skilled, and unskilled human resources. The Company recognises that effective, transparent and employee-centric human resource policies are essential for aligning its workforce with its business objectives and fostering a culture of productivity, accountability and continuous development. The Company remains committed to providing a healthy, safe, equitable and productive work environment and to attracting, retaining and nurturing talent. Its HR policies and practices are designed to support the professional and personal development of employees while creating opportunities for career progression, learning and skill enhancement.

The Company s focus areas in nurturing its human resources include:

a. Providing a healthy, safe, equitable and productive work environment.

b. Consistently induct, retain and nurture talent.

c. Develop policies for the achievement of professional goals and opportunities to grow for employees.

d. Putting in place a performance driven work culture and practices for mutual benefit.

e. Have an effective rewards & recognition system to acknowledge and encourage employee performance and satisfaction.

f. Have open, effective and multi-modal communication channel with the employees.

g. Safe, equitable, and productive work environment.

h. Talent acquisition, retention, and nurturing.

i. Career growth, development, and training.

j. Transparent, multi-modal employee communication.

k. Zero tolerance policy on cheating and fraud.

l. Strict norms for POSH compliances.

m. Employees incentive s

n. Promote learning about the field and business of the company.

A key element beyond the policies and HR practices that helps the Company connect with each employee is maintaining continuous and transparent communication with employees, which helps in building trust and commitment. The Company believes that its people are a key driver of sustainable business growth and continues to undertake appropriate initiatives for employee engagement, capability development, retention and overall well-being. As at end of FY26, the Group had 3814 employees, including 512 trained technical employees. The gross recruitment figure in FY26 for the Group was 1763 employees.

CORPORATE SOCIAL RESPONSIBILITY

As a responsible corporate citizen, the Company is deeply committed to inclusive and sustainable growth both for itself and for all its stakeholders, including society and the environment. Being in the business of waste management, dedicated and skilled manpower is environmental protection is not just a part of our corporate responsibility, but a core aspect of our daily operations. Through efficient and responsible waste handling, we play a direct role in reducing pollution, conserving natural resources, and promoting ecological balance.

Despite the financial losses incurred over the past few years, which place the Company under the exemption provided in Section 135 of the Companies Act, 2013 from the mandatory 2% CSR spending, our operations continue to generate meaningful social and environmental impact.

Moreover, as a key contributor to the nation s environmental infrastructure, our commitment to timely project delivery, operational excellence, and sustainable practices significantly benefits society at large and supports national development goals.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has established a robust and evolving internal control framework designed to ensure that business operations across the Group are conducted in a compliant, efficient, and effective manner. This framework includes comprehensive controls that align operational activities with strategic objectives, safeguard assets, prevent fraud, and ensure the accurate, complete, and timely recording and reporting of financial data. As part of our commitment to strengthening corporate governance and aligning its practices with global standards, the Company has undertaken training programs conducted in collaboration with the World Bank. These trainings have further enhanced our understanding of international best practices related to internal controls, and have supported the Company s continuing efforts to incorporate such principles into its systems, processes and control environment.

The Group conducts regular reviews of its policies and procedures, updating them in accordance with changing business needs, applicable regulatory developments, and the relevant global best practices. Internal and statutory audits are carried out rigorously by independent auditors to assess the effectiveness of controls and identify areas for improvement. The Audit Committee plays a key oversight role, reviewing compliance, evaluating the adequacy of internal controls, and assessing their effectiveness on annual basis. Based on these evaluations, the management team takes swift and structured action to implement the recommended changes, demonstrating our ongoing commitment to strong governance and operational excellence.

The Company believes that its internal control systems provide reasonable assurance with regard to the orderly and efficient conduct of its operations, safeguarding of assets, prevention and detection of fraud and errors, accuracy and completeness of accounting records, and timely preparation of reliable financial information.

OUTLOOK

Over the past few years, the Company has remained focused on strengthening its financial position through continuous debt reduction, disciplined cash flow management, and operational efficiency. As part of its long-term sustainability strategy, the Company has maintained a prudent scale of operations while emphasizing resource optimization, cost rationalization, and timely execution of ongoing projects. The Company s proven execution capabilities and established industry experience continue to reinforce its strong market reputation.

Going forward, the Company will leverage its extensive technical expertise, execution track record, and domain knowledge to actively participate in and bid for new tenders across its core business segments. The strategic focus will remain on securing selective, high-value opportunities in the Engineering, Procurement and Construction (EPC) segments of Telecom and Power Transmission & Distribution (T&D), while continue to significantly expanding its presence in the Facility Management Services (FMS) business over the coming financial years. The Company will also continue to explore opportunities in the Municipal Solid Waste Management sector, with emphasis on with its projects that are financially core competencies.

The Company remains committed to the continuous reduction of its debt through prudent financial management, improved operational performance, and constructive engagement with its lending partners. These initiatives are expected to further strengthen the Company s balance sheet, enhance financial flexibility, and create a solid foundation for sustainable long-term growth while safeguarding the interests of all stakeholders. India s resilient economic growth, supported by sustained investments in infrastructure, rapid urbanization, expansion of power generation and transmission networks, increasing digital connectivity, adoption of Artificial Intelligence (AI) and other emerging technologies, and the growth of commercial opportunities realestate, is expected to generate significant across the Company s target sectors. The rapid adoption of AI, cloud computing, data-driven technologies and digital services is expected to accelerate demand for data centres, telecom infrastructure, reliable power transmission and distribution networks, and technology-enabled facility management solutions.

With its experienced workforce, established credentials, technical capabilities and disciplined approach to project execution, the Company remains well positioned to capitalise on emerging opportunities in its focus sectors. The Company will continue to pursue a balanced and prudent growth strategy, with emphasis on financial discipline, operational efficiency, selective project acquisition and sustainable value creation for its stakeholders.

FORWARD-LOOKING STATEMENTS

This Management Discussion and Analysis Report contains certain forward-looking statements relating to the Company s future business prospects, growth strategies, operational performance, financial position, and business plans. These statements are based on the Company s current expectations, assumptions, estimates, and projections regarding future events and are subject to various risks and uncertainties. The Company continues to make steady progress across key aspects of its business through disciplined financial management, continuous debt reduction, active participation in new tenders, and a sustained focus on strengthening and expanding its existing business operations, particularly in its core business segments. These initiatives are expected to enhance the Company s operational capabilities, improve financial stability, and However, actual results may differ materially from those expressed or implied in these forward-looking statements due to various factors beyond the Company s control, including changes in economic conditions, market demand, competitive environment, availability of projects, government policies, regulatory and tax changes, financing conditions, and other business risks.

The forward-looking statements contained in this Report should therefore be viewed in light of these uncertainties. The Company undertakes no obligation to publicly update, revise, or modify any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable laws and regulations.