Afcons Infrastructure Ltd Management Discussions

GLOBAL ECONOMY

The global economy registered growth of 3.3% in 2024, supported by stable consumption and investment across key regions. Moving ahead, the global economy is projected to grow moderately at 2.8% in 2025 and further grow by 3.0% in 2026 as per IMF. These growth rates mark a slowdown compared to the pre-pandemic averages of 3.7% (2000 - 2019). After enduring several years of prolonged disruptions, the global economy began to stabilise, though growth remained modest and below historical norms. Growth is being supported by resilient private consumption, targeted government investments in certain regions, and technological advancements especially in artificial intelligence. However, the environment has since shifted, as governments across the world reassess their policy priorities and global uncertainties reach heightened levels. Growth remains uneven across regions, reflecting varying domestic conditions, external shocks, and structural constraints. A prominent feature of the global landscape is the rise in geopolitical tensions and escalating trade barriers. The United States has imposed tariffs at levels not seen since the Great Depression significantly dampening trade activity. Consequently, global trade volume is projected to grow by just 1.7% in 2025, well below the rate of overall economic expansion. These developments have eroded business confidence, disrupted supply chains, and raised concerns about long-term innovation and productivity if protectionist trends persist.

The global economy faces multiple interlinked challenges including trade policy uncertainty, persistent inflationary pressures, especially in services and wages, geopolitical conflicts, energy market volatility, climate-related risks, and enduring structural issues such as weak investment, slowing productivity, high debt burdens, and adverse demographic trends. In response, monetary policy easing is being approached cautiously, with advanced economy central banks expected to reduce rates gradually, while emerging markets display a mixed approach based on local inflation dynamics. Governments are increasingly urged to implement decisive policy actions to safeguard trade openness, address debt vulnerabilities, and boost investments in human capital, green infrastructure, and technology to promote resilience and inclusive growth.

Compounding the challenges facing the global economy is the resurgence of tariff wars under the Trump administration, which has introduced sweeping tariffs on imports from major trading partners including the European Union, China, Canada, and Mexico. These measures have raised the average effective US tariff rate to approximately 22.5%, highest since 1909. The ramifications of these trade barriers are extensive. Global trade growth has been revised downward for both 2025 and 2026 due to heightened trade uncertainty and the direct impact of tariffs.

Meanwhile, global supply chains are undergoing notable shifts as businesses reconfigure operations to mitigate geopolitical risks through "de-risking" strategies. These include developing alternative supply chains, diversifying sourcing, nearshoring, and friend-shoring - reshaping global trade and manufacturing patterns, though often at the cost of higher short-term expenses and operational complexity.

Across regions, advanced economies are forecast to grow at a slower but stable pace, around 1.4% in 2025. The United States is expected to moderate to 1.8% growth, with solid productivity gains but constrained by fiscal tightening and labour market softening. Europe is projected to achieve modest recovery with growth near 0.8%, supported by easing monetary conditions and steady household incomes, while Japans economy is anticipated to rebound to 0.6%, fuelled by rising wages and consumer spending. Inflation in advanced economies is easing more rapidly compared to emerging markets, though services and wage inflation continue to pose challenges.

Emerging markets and developing economies (EMDEs) are expected to grow faster, at around 3.7%, though with significant regional disparities. Chinas growth is forecast to slow to 4.0% in 2025 amid property sector weaknesses and demographic headwinds, despite policy support. India is expected to remain a global outperformed with GDP growth projected at 6.2% in FY 2025, driven by robust domestic demand and strong public investment. Latin America, SubSaharan Africa, and parts of the Middle East and North Africa are also expected to see moderate growth improvements, helped by domestic consumption and easing financial conditions.

OUTLOOK

Overall, the global economic outlook remains cautious. While growth persists, persistent inflation, elevated geopolitical risks, and structural vulnerabilities pose significant downside risks. Sustained global recovery will depend critically on restoring trade cooperation, maintaining prudent monetary and fiscal frameworks, and investing in productivity enhancing sectors such as technology, energy, and education. International cooperation will be essential to strengthen economic resilience and foster a more inclusive, sustainable growth trajectory.

Trade, a traditional engine of global economic integration, is also expected to expand at a more tempered pace. World trade volume of goods and services are projected to decline from estimated 3.8% in 2024 to 1.7% in 2025 and rising to 2.5% in 2026. This reflects the combined impact of rising protectionism, evolving global value chains, and recalibrated trade partnerships, signalling a shift towards a more fragmented and slower-growing global trade environment.

Real GDP Growth Projections (in %)

Region / Country	2024 E	2025 P	2026 P
World Output	3.3	2.8	3.0
Advanced Economies	1.8	1.4	1.5
United States	2.8	1.8	1.7
Euro Area	0.9	0.8	1.2
Japan	0.1	0.6	0.6
United Kingdom	1.1	1.1	1.4
Emerging Market and Developing Economies	4.3	3.7	3.9
Emerging and Developing Asia	5.3	4.5	4.6
China	5.0	4.0	4.0
India	6.5	6.2	6.3
Emerging and Developing Europe	3.4	2.1	2.1
Latin America and the Caribbean	2.4	2.0	2.4
Middle East and Central Asia	2.4	3.0	3.5
Saudi Arabia	1.3	3.0	3.7
United Arab Emirates	3.8	4.0	5.0
Sub-Saharan Africa	4.0	3.8	4.2

Note: E- Estimated, P- Projected; India growth rates on fiscal year basis (Apr - Mar); other countries growth rates on calendar year basis

(Source: https://www.imf.org/en/Publications/WEO/Issues /7075/04/77/world-economic-outlook-april-7075)

INDIAN ECONOMY

Amidst a complex and evolving global landscape marked by divergent growth trends, geopolitical uncertainties, and tighter financial conditions, India has demonstrated sustained macroeconomic strength. FY 2024-25 has seen a series of developments that have not only fortified the domestic economy but also reinforced Indias stature as one of the worlds fastest-growing major economies. Despite inflationary pressures, external volatility, and fluctuating global demand, Indias economic fundamentals have remained robust, reflecting enduring momentum.

The Reserve Bank of India (RBI), in its April 2025 Bulletin, estimates GDP growth at 6.5% for FY 2024-25, supported by resilient private consumption, steady government expenditure, and a healthy rural demand. A strong rabi crop has buoyed rural incomes, while urban consumption remains stable, driven by employment gains in services and a modest but uneven recovery in manufacturing.

In response to this evolving inflation trajectory and with the intent to stimulate economic activity, the RBI reduced the repo rate by 25 basis points to 6.25% in February, 2025 - the first rate cut in five years since May 2020. This was followed by a further reduction to 6.00% in April, 2025. These calibrated moves are aimed at supporting growth at a time when inflation appears to be under control. Additionally, ongoing global uncertainties, exacerbated by trade tensions and reciprocal tariffs introduced by US President Donald Trump, have influenced monetary policy decisions, given their potential to disrupt global trade flows and impact Indias export performance. The RBI maintains a calibrated approach, signalling a readiness to shift towards monetary easing if headline inflation continues to converge sustainably toward its medium-term target. Nevertheless, external vulnerabilities have intensified; foreign portfolio outflows and pressures on the rupee underscore risks stemming from a fragile global trade environment and tightening international liquidity.

On the policy front, the governments fiscal strategy - focused on capital expenditure in infrastructure and targeted welfare spending in rural and semi-urban areas - is providing a strong counter-cyclical cushion to economic activity. Challenges persist in areas such as sustaining manufacturing growth, accelerating private investment, and boosting employment opportunities for youth and semi-skilled workers. The RBI emphasises that deepening structural reforms, enhancing productivity, and investing in physical and human capital will be critical to consolidating macroeconomic gains and achieving long-term development objectives.

Despite these headwinds, Indias growth outlook remains anchored in optimism, supported by resilient domestic demand, proactive policy management, and ongoing diversification of the economic base. Strong foreign exchange reserves and continued digital transformation further enhance the economys capacity to weather external shocks and maintain forward momentum.

Outlook

Indias economic outlook for FY 2025-26 remains broadly positive, underpinned by dynamic domestic demand, structural policy reforms, and substantial investments across critical sectors. The Reserve Bank of India projects real GDP growth at 6.5% for FY 2025-26, maintaining the same rate as estimated for FY 2024-25. RBI has further projected growth rate of 6.7% for FY 2026-27, highlighting continued recovery momentum. This expansion is expected to be driven by continued infrastructure investments, accelerating digital transformation, rising manufacturing output supported by Production Linked Incentive (PLI) schemes, and sustained rural consumption bolstered by favourable agricultural performance.

Infrastructure development remains a key catalyst for growth, with significant investments directed towards highways, railways, ports, and urban connectivity, improving logistics efficiency and reducing operational costs for businesses across the economy. At the same time, inflationary trends warrant continued vigilance. While headline inflation has moderated, food inflation remains elevated in certain segments, influencing consumer purchasing power and posing challenges for monetary policy calibration. The RBI is likely to maintain a cautious yet adaptive stance, adjusting policy levers as necessary to balance growth and price stability.

Concerns on lingering global market uncertainties and recurrence of adverse weather-related supply disruptions, however, pose upside risks to the inflation trajectory. Taking all these factors into consideration, and assuming a normal monsoon, CPI inflation for FY 2025-26 is projected at 4.0%. While overall price trends suggest a gradual stabilisation, food inflation remains somewhat volatile, necessitating cautious monetary management.

Externally, India continues to navigate an uncertain global environment marked by geopolitical tensions, evolving trade dynamics, and the impact of US tariff policies, which have introduced some volatility in export performance and operational costs. Future tensions between India and Pakistan may further add to the uncertainty, heightening geopolitical risks and potentially impacting investor sentiment and regional trade flows. However, Indias diversified trade partnerships, focus on domestic manufacturing, and efforts to enhance supply chain resilience provide important buffers against external disruptions.

Importantly, Indias long-term fundamentals remain strong. A large and youthful workforce, rapid urbanisation, and increasing digital penetration are reshaping the economy, fostering innovation, and boosting productivity. The services sector continues to expand dynamically, while emerging sectors such as clean energy, healthcare, and advanced manufacturing are creating new growth opportunities.

Looking ahead, the governments vision of ‘Viksit Bharat by 2047 offers a comprehensive blueprint for economic transformation, centred on building human capital, expanding infrastructure, and leveraging technology for inclusive growth. Maintaining geopolitical stability will also be critical to realising this vision, as regional frictions, particularly with neighbouring Pakistan, could pose headwinds to progress. With prudent macroeconomic management, India is well- positioned to harness these structural strengths and achieve durable, sustainable progress over the coming decades.

GLOBAL CONSTRUCTION SECTOR

The global construction and infrastructure sector is undergoing a pivotal transformation, fuelled by the intersecting forces of sustainability, rapid urbanisation, digital innovation, and government-led investment. As nations seek to modernise their built environments while addressing climate change and rising urban populations, the sector is emerging as a key pillar of sustainable development and economic momentum.

(Source: Fitch Solutions - Global Infrastructure Report - Q2 2025) f-forecast

Global Construction industry: Projected to attain a market size of USD 5,937 bn in 2024, the sector is on track to expand to USD 9,287 bn by 2034.

The Asia-Pacific region is likely to play a major role in driving global construction industry growth over the coming years. This is being supported by ongoing urbanisation and significant infrastructure development across countries like India, China, Bangladesh, Indonesia, and Vietnam. As populations grow and economies expand, these nations are making large-scale investments in areas such as transport, housing, smart cities, and clean energy. This steady activity is expected to help maintain consistent growth in the regions construction sector. Given the scale of construction already underway, with Asia-Pacific estimated to have made up nearly 40% of the global construction market by value in 2024, the region is well positioned to continue contributing strongly to global industry trends.

Within the region, India will increasingly contribute to growth, with average annual real growth of 6.3% y-o-y over 2025 and 2026 and of 6.2% y-o-y between 2025 and 2034. The Philippines, Vietnam and Indonesia will also see robust growth over the coming years, with all to see average annual construction industry real growth above 6.0% y-o-y both over 2025 and 2026 and over Fitchs ten-year forecast. Bangladesh is witnessing rapid expansion through infrastructure projects across energy, urban development, and industrial corridors. Meanwhile, Maldives is prioritising sustainable infrastructure, with key investments in renewable energy, connectivity, and climate-resilient coastal defences across its dispersed islands. Mainland Chinas construction industry will see more modest growth, with average annual growth of 3.6% y-o-y forecast over 2025 and 2026 and of 3.1% y-o-y between 2025 and 2034, down from average annual real growth of 4.7% y-o-y between 2015 and 2024.

MIDDLE EAST AND AFRICA (MEA) INFRASTRUCTURE OVERVIEW

The infrastructure sector in the Middle East and Africa (MEA) is currently in the midst of a transformation, characterised by considerable investment inflows. With a strong governmental emphasis on modernisation and sustainable development, the region is witnessing an increase in large- scale projects focussed on improving connectivity, urban living conditions, and energy security.

Middle East Infrastructure Market

Middle East construction market was valued at USD 298 bn in 2023 and is projected to reach USD 401 bn by 2030, clocking in a CAGR of 2.9% from 2024 to 2030. The Middle East construction market is witnessing sustained momentum driven by mega projects across transportation, energy, residential, and commercial sectors. Countries like Saudi Arabia, the UAE, and Qatar are leading this growth, propelled by economic diversification agendas and Vision 2030 initiatives. The focus is shifting towards smart cities, green infrastructure, and public-private partnerships, further strengthening the regions infrastructure pipeline.

Saudi Arabias construction industry is projected to maintain a steady and broad-based growth outlook, underpinned by the countrys strategic efforts to diversify its economy away from oil dependency. The sector is propelled by an ambitious pipeline of megaprojects and large-scale transport infrastructure developments, aimed at transforming the countrys urban landscape and economic base. The ongoing execution of Vision 2030, coupled with the award of the 2034 FIFA World Cup, is expected to drive substantial investments from the Public Investment Fund (PIF) and other government related entities. The United Arab Emirates (UAE) construction industry is expected to sustain its growth trajectory, supported by economic diversification agenda and continued investments in infrastructure development. Transport infrastructure sector is poised to benefit from high urbanisation rates and the governments strategic focus on expanding tourism and enhancing both domestic and international logistical connectivity. Significant investments are planned in port infrastructure, reinforcing the UAEs position as one of the leading global shipping and logistics hub.

African Infrastructure Market

Africa is fast emerging as one of the most dynamic construction markets globally, supported by favourable demographics, rapid urbanisation, and increasing infrastructure investments. The African construction sector is projected to expand from USD 61 bn in 2025 to USD 77 bn by 2030, representing a compound annual growth rate (CAGR) of 4.8%. This sustained expansion underscores the sectors growing role in supporting long-term economic progress across diverse African economies. Sub-Saharan Africa (SSA), in particular, is leading this momentum, with one of the fastest-growing construction sectors worldwide. The regions construction sector is forecast to grow by 5.0% in 2025 and 5.6% in 2026. Over the next decade, SSA is expected to record an average annual growth rate of 5.1%.

In the aftermath of the covid-19 pandemic, several African governments continue to face elevated fiscal pressures, managing higher debt levels and strained public finances. This has led to near-term funding constraints, with some delays and deferment in capital expenditure plans. Despite these headwinds, the medium- to long-term outlook for Africas infrastructure sector remains positive, supported by structural drivers such as urbanisation, population growth and regions ongoing demand for critical infrastructure. In the near term, government-led infrastructure projects are expected to be the primary growth drivers, supported by ongoing global interest in Africas natural resources, affordable labour, expanding consumer base, and investment opportunities in sectors such as transport and energy. Supportive economic reforms, commodity price recovery, anti-corruption efforts, and the entrenchment of democratic governance are further enhancing the continents investment appeal.

Nonetheless, the continent continues to face a significant infrastructure funding gap estimated at USD 68-108 bn annually. To bridge this, strategic investments are being channelled into high-impact areas such as transport, energy, water, and urban development. Major regional initiatives like the African Continental Free Trade Area (AfCFTA) are driving large scale infrastructure projects across roads, railways, ports, and power grids, aimed at enhancing regional integration and boosting economic productivity.

Rapid urbanisation, which is expected to double Africas urban population by 2050, is further driving demand for critical urban infrastructure including housing, public transport, water supply, and sanitation. Financial institutions such as the African Development Bank, World Bank continue to play a pivotal role in financing large-scale projects, helping to address the continents infrastructure deficits and enabling inclusive, sustainable economic growth.

EUROPE INFRASTRUCTURE MARKET

The European construction industry is projected to grow by 2.5% in real terms in 2025 and 2.3% in 2026, with the average growth over the ten-year period (2025-2034) expected to be 2.1%, as per Fitch Solutions. Within Europe, Central and Eastern Europe continues to stand out as one of the fastest growing regions, supported by a combination of EU funding, national investment programmes and private sector participation. The region presents diverse infrastructure opportunities, particularly in transportation, energy, and digital connectivity. Significant initiatives are underway to enhance cross-border road and rail connectivity in the region where projects are being supported by both EU structural funds and domestic capital investment programmes. These developments are expected to strengthen regional integration, improve logistics efficiency, and support economic growth across the broader EU market

INDIAN INFRASTRUCTURE MARKET

India is undertaking several large-scale infrastructure projects to imrove connectivity and accelerate economic growth. These initiatives are pivotal to transforming the countrys infrastructure landscape and advancing Indias aspiration to become a developed nation under Viksit Bharat 2047. The country has already achieved significant milestones in this journey. Notable examples include: Atal Tunnel - the worlds longest highway tunnel located at an altitude of 3,000 metres above sea level; East-West Kolkata Metro - Indias first underwater metro; Chenab Bridge -tallest single-arch railway bridge in the world. These landmark achievements underscore Indias commitment to building world-class infrastructure and setting new engineering benchmarks.

The infrastructure sector is closely linked to the trajectory of economic growth, rendering it inherently cyclical. Furthermore, the majority of infrastructure expenditure in India is funded by the government. The Union Governments capital expenditure priorities across various sectors, including roads, railways and urban infrastructure, are subject to periodic adjustments, reflecting evolving economic needs and policy directions. State governments also play a vital role in driving infrastructure investments, contributing significantly to overall capital expenditure in the economy. However, state level capex tends to be more volatile than central government capex as differing political ideologies and priorities often lead to shifts in investment patterns following changes in state governments. Consequently, the infrastructure capex trajectory within a particular state can witness significant fluctuations post-elections. Despite these challenges, Indias infrastructure sector remains a cornerstone of the nations economic growth and development, fully aligned with the vision of Viksit Bharat 2047.

Total Capital Expenditure (Union Budget 2025-26) Rs 11.21 Lakh Crores

Reaffirming its commitment to national progress, the Government of India has launched a plethora of initiatives aimed at upgrading transportation infrastructure, refining urban amenities, and expanding digital connectivity. These efforts encompass the development of highways, metros, railways, and airports, as well as the promotion of waterways and ropeway systems, with the aim of fostering inclusive and sustainable development across the nation.

A key feature of Indias infrastructure sector is the increasing role of the private sector, which presents substantial opportunities for investment and innovation. Additionally, the government has introduced various incentives to attract private investment and foreign direct investment (FDI), including support for project feasibility studies, land acquisition facilitation, and streamlined environmental clearances. Private sector involvement is also expanding in urban infrastructure through initiatives like Cities as Growth Hubs and Creative Redevelopment of Cities, which aim to leverage competitive, project-based financing models and encourage bond issuances and bank loans alongside PPPs. The 2025-26 budget emphasises improving logistics infrastructure by investing in multimodal parks to reduce transportation costs and enhance market access, further opening avenues for private sector participation.

SURFACE TRANSPORT Road and Highways

India has the second largest road network in the world and its National Highways span a total length of 1,46,145 km, forming the primary arterial network of the country. Maharashtra has the longest network of national highways in India, with a total length of approximately 18,459 km, followed by Uttar Pradesh at 12,292 km and Rajasthan with 10,706 km in second and third place respectively.

Expansion of National Highways in India

Road Transport & Highways Budget Allocation (FY 2025-26)

This marks a 2.41% increase from the previous year, signalling a continued push for connectivity and economic expansion. The National Highways Authority of India (NHAI) has received a boost in funding, with an allocation of Rs 1.87 Lakh Crores, up from Rs 1.69 Lakh Crores in the prior year. The Budget also highlights ambitious plans for expanding the road network, with 15 major projects worth Rs 44,000 Crores set to be awarded. These projects will cover 937 kilometres, enhancing regional connectivity and fostering economic development.

The Ministry of Road Transport and Highways (MoRTH) has announced an ambitious plan to develop a 50,000 km high-speed highway network across India, adopting a corridor-based approach. This strategy focuses on creating continuous high-speed corridors that ensure consistent standards, enhance user convenience, and improve logistics efficiency. The corridor-based model is designed to integrate major economic zones, facilitating smoother and faster movement of goods and people, which is critical for Indias vision of becoming a USD 30 tn economy by 2047. By the end of FY 2024-25, MoRTH aims to operationalise approximately 4,827 km of these high-speed corridors, building on the 4,693 km already operational by December 2024. Completion of several ongoing expressway projects such as the Delhi-Mumbai Expressway, Delhi-Dehradun Expressway, Bengaluru-Chennai Expressway will further provide boost to national connectivity.

In addition to the central governments efforts through agencies like the National Highways Authority of India (NHAI), various state governments are actively developing highways and expressways, contributing significantly to the expansion of Indias road infrastructure.

State-wise Highway and Expressway Developments:

• Maharashtra: The state government, through the Maharashtra State Road Development Corporation (MSRDC), is executing a grand plan to build nearly 3,000 km of highways aimed at connecting most of its 36 districts within the next five years. This complements the operational 701-km Mumbai- Nagpur Expressway (Samruddhi Mahamarg), which is one of the longest expressway in India and a flagship project for the state. The overall investment for this network is estimated at Rs 3 Lakh Crores, reflecting Maharashtras strong commitment to enhancing intrastate connectivity.

• Uttar Pradesh: With approximately 1,500 km of expressways, Uttar Pradesh has been a frontrunner in expressway development. Major expressways like the Agra-Lucknow Expressway, Purvanchal Expressway, Bundelkhand Expressway, and Yamuna Expressway are fully operational, significantly reducing travel time and boosting economic activity in the region. The state is also working on the Ganga Expressway and Gorakhpur Link Expressway, expected to be completed soon.

• Rajasthan: Rajasthan has developed around 840 km of expressways, including key corridors like the Jaipur- Bandikui Expressway under construction. The state is also part of multi-state expressways such as the Delhi-Mumbai Expressway and the Atal Progress-Way (Chambal Expressway), which are crucial for regional connectivity.

• Karnataka: Karnataka has developed around 251 km of expressways, including the operational section of the Bengaluru-Chennai Expressway. The state is also involved in multi-state expressway projects such as the Bangalore-Vijayawada Expressway, expected to enhance connectivity in southern India.

• Odisha: Odisha is rapidly upgrading its road infrastructure with projects like the six-laning of the Bhubaneswar-Puri highway and four-laning of the Kanaktora-Telebani section of NH-49. The state is also part of the 464 km Raipur-Vizag economic corridor, with 241 km in Odisha expected to be completed by December 2025 at a cost of Rs 20,000 Crores. Additionally, the Ranchi-Sambalpur highway and Cuttack-Sambalpur NH-55 are major projects underway, aiming to elevate Odishas roads to international standards soon.

Other states like Telangana, Jharkhand, West Bengal, and Madhya Pradesh are also contributing to the expressway network with state-built expressways and participation in national corridor projects.

Award and Construction of National Highways

Sr. No.	Year Award (in km)	Construction (in km)	Construction (in km / day)
1	FY 2014-15 7,972	4,410	12.1
2	FY 2015-16 10,098	6,061	16.6
3	FY 2016-17 15,948	8,231	22.6
4	FY 2017-18 17,055	9,829	26.9
5	FY 2018-19 5,493	10,855	29.7
6	FY 2019-20 8,948	10,237	28.1
7	FY 2020-21 10,964	13,327	36.5
8	FY 2021-22 12,731	10,457	28.6
9	FY 2022-23 12,376	10,331	28.3
10	FY 2023-24 8,581	12,349	33.8
11	FY 2024-25 3,100 (till Dec24)	5,853	21.3

(Source: https://pib.gov.in/PressReleasePage.aspx?PRID= 2091508)

Railways

Indias rail infrastructure has witnessed significant advancements, strengthening connectivity, safety, and urban mobility. India is also pursuing a number of highspeed rail (HSR) projects, with the government attempting to push for progress with the Mumbai-Ahmedabad route. In the highspeed trains, India aims to have 7,000 km of high-speed rail network supporting speeds of 250 km per hour by 2047.

Indian Railways achieved a historic milestone, transporting over 3 Crores passengers in a single day on 4^th November, 2024. Flagship initiatives such as the Vande Bharat trains and metro rail expansion are enhancing the passenger experience, modernising transit hubs, and ensuring seamless travel. Additionally, Indian Railways stated that it will achieve 100 % electrification by the end of FY 2025-26. With a strong push under the Make in India vision, the expansion of the railway network underscores the commitment to inclusive growth and efficient transportation.

Over the years, Indian Railway has placed significant emphasis on capacity expansion, particularly through the construction of new tracks and the enhancement of existing rail infrastructure. This focus has been accompanied by a steady increase in both the allocation and utilisation of funds over past several years, aimed at expanding the network and ensuring upkeep of existing lines. As a result, the annual capacity addition has more than doubled, rising from 2,226 km in FY 2019-20 to 5,309 km in FY 2023-24, reflecting the Railways commitment to strengthening its role as a backbone of Indias transportation network. Rs 2.65 Lakh Crores

Railway Capital Expenditure (2025-26)

These allocated funds will support critical infrastructure initiatives, including track expansion, procurement of rolling stock, electrification, signalling upgrades, and station modernisation. Major focus has been placed on the creating railway track infrastructure with an allocation of Rs 1.05 Lakh Crores, which includes Rs 32,235 Crores for the construction of new lines, Rs 32,000 Crores for line doubling.

URBAN INFRASTRUCTURE

Indian Government continues to place a strong emphasis on urban infrastructure and has introduced several key measures to support the expansion of sustainable urban transport solutions. Metro Rail has emerged as a cornerstone of this transformation, offering a fast, reliable, and eco-friendly alternative to conventional public transport commuting methods.

Metro Rail Expansion

Over the last decade, Indias metro rail systems have been instrumental in strengthening urban transportation infrastructure, alleviating congestion, improving air quality and significantly enhancing the ease of living in urban centres. Indias metro network spans over 1,000 km across 11 states and 23 cities, serving millions of commuters daily by providing affordable, safe and efficient urban mobility solutions. With the rapid pace of expansion, India has become home to the third-largest metro network and is on a verge to become second largest metro network in the world, reflecting the countrys ambitious metro rail infrastructural development agenda. The metro network has expanded from 248 km in 2014 to 1,011 km by March 2025, covering over 23 cities, supported by substantial investments from both the central and state governments.

In addition to traditional metro systems, India has made significant strides in introducing the Regional Rapid Transit System (RRTS) - a new generation of high-speed commuter rail networks connecting urban centres with their satellite towns. Delhi-Meerut RRTS corridor marks a key milestone in Indias efforts to establish multi-modal urban and regional connectivity, further integrating metro, RRTS, and suburban rail networks into a seamless transport ecosystem.

Looking ahead, the governments continued focus on urban transport under Viksit Bharat 2047, coupled with progressive policies and innovative financing models are expected to drive further metro rail expansion.

Marine & Industrial

Indias strategic location along key global shipping routes, with a vast coastline of approximately 7,517 km, positions it as a vital maritime hub. Maritime transport plays a pivotal role in the nations trade, handling around 95% of Indias trade by volume and approximately 70% by value.

The countrys maritime infrastructure is robust and expanding, comprising:

• 12 government-owned major ports

• 217 minor and intermediate ports

• 30 shipyards

(Source: https://www.pib.gov.in/PressNoteDetails.aspx?

NoteId=153432)

India also boasts one of the largest merchant shipping fleets among developing nations, currently ranked 20^th globally. Being part of the worlds busiest trade routes enhances Indias economic relevance and underlines the critical importance of the maritime sector in supporting trade and economic growth. Indian Governments Maritime India Vision 2030 (MIV 2030) is aimed at propelling India to global maritime leadership. It seeks to:

• Upgrade ports to global standards

• Promote inland water transport and coastal shipping

• Foster sustainability across maritime operations

MIV 2030 identifies 150+ initiatives across various maritime sectors like ports, shipping and waterways aiming to transform Indias maritime sector into a world- class ecosystem through coordinated and accelerated development. Key targets under major initiatives were defined to improve performance and efficiency of Indian maritime sector to best in class levels. Additionally, MIV 2030 outlines an ambitious investment plan of Rs 3,00,000-3,50,000 Crores

across ports, shipping, and inland waterways categories. This strategic roadmap is projected to unlock over Rs 20,000 Crores in potential annual revenue for Indian Ports. Moreover, MIV 2030 is expected to generate approximately 20 Lakhs additional jobs, both direct and indirect, thereby significantly contributing to employment generation and enhancing overall competitiveness of the Indian maritime sector.

MIV 2030 - Key targets

Key Performance Indicator	2020	Target 2030
Major Ports with >300 MTPA cargo handling capacity	-	3
% of Indian cargo transshipment handled by Indian ports	25%	>75%
% of cargo handled at Major Ports by PPP/other operators	51%	>85%
Average vessel turnaround time (containers)	25 hours	<20 hours
Average container dwell time	55 hours	<40 hours
Average ship daily output (gross tonnage)	16,500	>30,000
Global ranking in ship building and ship repair	20+	Top 10
Global ranking in ship recycling	2	1
Annual cruise passengers	4,68,000	>15,00,000
% share of Indian seafarers across the globe	12%	>20%
% share of renewable energy at Major Ports	<10%	>60%

In addition to the Governments sustained focus, Indian maritime sector has witnessed a progressive increase in private sector participation, supported by enabling policies and robust growth in trade volumes. Private players are playing an increasingly pivotal role in augmenting port infrastructure, particularly in the development of container terminals, multi-purpose berths, and cargo handling systems thereby enhancing the overall efficiency and capacity of Indian ports. Several marquee global and domestic investors have made substantial investments in both brownfield and greenfield port assets encouraged by Indias growing trade volumes and the governments initiatives to improve port-led logistics infrastructure. This evolving investment landscape presents significant growth opportunities in the domestic maritime market in the areas of marine structures, port mechanisation, dredging, breakwater construction, and allied infrastructure.

HYDRO & UNDERGROUND

Hydropower is poised to play a pivotal role in shaping Indias energy infrastructure, thanks to its unique advantages such as grid stability and balancing support through Pumped Storage Projects (PSPs). With India targeting 500 GW of non-fossil fuel capacity by 2030, the need for flexible, dispatchable energy storage solutions has become critical, particularly to complement the variability of solar and wind power. Recognising this, the Government of India has placed renewed emphasis on fast-tracking the development of PSPs, supported by favourable policy reforms. Several state governments have also initiated competitive bidding processes for PSP development on identified sites, attracting interest from both public and private sector developers. The governments thrust on hydro and incentives for Pumped Storage Schemes is expected to catalyse capacity addition in the coming year. Hydroelectric power capacity is likely to increase from 47 GW as of DecRs 2024 to 67 GW by FY 2031-32. Further, PSP capacity is projected to increase from 4.7 GW to 55 GW by FY 2031-32.

WATER

The Indian government has allotted 67,000 Crores for Jal Jeevan Mission in Budget 2025-26, while also extending the mission timeline to 2028, underscoring its commitment to providing 100% of rural households with potable tap water within next three years. Since its launch in 2019, the mission has already benefitted around 80% of Indias rural population, with several states and union territories like Goa, A&N Islands, Puducherry, D&NH and D&D, Arunachal Pradesh, Haryana, Punjab, Telangana, Mizoram, Himachal Pradesh, and Gujarat achieving 100% Har Ghar Jal status. In addition to water supply, Indias water treatment and sewerage sector is witnessing accelerated investments, driven by rapid urbanisation, industrial growth, and rising environmental awareness. Central and state governments initiatives focused on urban sanitation, water reuse along with regulatory tightening, are fuelling the development of wastewater treatment, sewage management and recycling infrastructure. The sector is poised for robust growth with continued policy focus on 100% sewage treatment coverage in urban areas, industrial water reuse, and river rejuvenation programmes.

OIL & GAS

India continues to be the fastest-growing oil consumer globally, with demand increasing by 200 kb/d in 2024, driven by strong industrial activity, rising transportation fuel consumption, and higher household demand for LPG. The country remains the worlds second-largest net importer of crude oil. In an effort to enhance energy security and improve price competitiveness, India has been diversifying its crude sourcing strategy, reducing dependence on traditional suppliers while tapping into new markets and discounted cargoes. Concurrently, India continues to expand its Strategic Petroleum Reserves (SPR) to reduce dependence on imported crude oil. The downstream sector continues to witness expansion, supported by increasing refining capacity, upgrades to existing refineries, and expansion of the fuel distribution infrastructure. Investments in pipeline networks and logistics capabilities have further bolstered domestic fuel availability and strengthened Indias position as a regional hub for refined product exports. The country is also witnessing an increasing integration of refinery and petrochemical capacities to maximise value addition.

OPPORTUNITIES

Government Initiatives and Funding

The government remains firmly committed to the growth of infrastructure and has made substantial financial provisions to support this objective. In the Union Budget FY 2025-26, Rs 11.21 Lakh Crores have been allocated to capital expenditure, underscoring importance of infrastructure sector in national development. Additionally, an allocation of Rs 1.5 Lakh Crores is proposed for providing 50-year interest- free loans to states, enabling them to increase capital expenditure and incentivise participation in infrastructure projects. To further attract foreign investments, the governments has introduced tax incentives designed to create a more favourable environment for investors.

National Infrastructure Pipeline (NIP) Projects (as of May 2025)

Sector	Sub-Sector	Total no. of projects	Total Value
Roads	Roads and Highways	6,552	Rs 45.58 Lakh Crores
Railways	Railways	878	Rs 20.83 Lakh Crores
Water Sector	Weaste & Water Sector	1,033	6.41 Lakh Crores
	Water Resources	626	Rs 12.64 Lakh Crores
Urban Transport	Urban Public Transport	223	8.04 Lakh Crores
Energy Sector	Electricity Generation	393	Rs 20.97 Lakh Crores
Oil and Gas	Oil and Gas	246	Rs 5.83 Lakh Crores

Urbanisation

The rapid pace of urbanisation in India is catalysing the need for modern infrastructure to support its growing cities. Initiatives aimed at urban transformation such as metro rail expansion, smart city projects, urban redevelopment programmes, affordable housing schemes, and the Urban Challenge Fund present a wide array of opportunities for infrastructure companies.

Metro rail projects, in particular, have emerged as a key enabler of sustainable urban mobility, offering efficient and eco-friendly transport solutions for densely populated cities. These endeavours are designed to enhance urban living standards and promote sustainable growth, creating significant demand for innovative, scalable infrastructure solutions.

Focus on Sustainable Infrastructure

With sustainability now a critical global imperative, India is increasing its focus on the creation of green and resilient infrastructure. Renewable energy projects, innovative waste management solutions, eco-friendly buildings, and sustainable transportation networks are emerging areas where infrastructure companies can explore and capitalise on substantial opportunities.

National Monetisation Pipeline-II

The second phase of the National Monetisation Pipeline (NMP-II) presents significant opportunities for infrastructure companies, as the Government of India sets an ambitious asset monetisation target of Rs 10 Lakh Crores over a five- year period from FY 2025-26 to FY 2029-30, with Rs 1.9-2 Lakh Crores earmarked for FY 2025-26. This phase builds on the success of NMP 1.0, under which the government achieved Rs 5.65 Lakh Crores of the 6 Lakh Crores objective amounting to 94% of the initial target, over a four year period from FY 2021-22 to FY 2024-25.

NMP-II will focus on strategic sectors such as coal and mining, highways, power, and railways, while also expanding its scope to infrastructure development on vacant public land. With a reinvestment goal of Rs 10 Lakh Crores in new projects, this phase is designed to unlock capital for greenfield development, boost private participation, and enhance asset productivity.

The National Highways Authority of India (NHAI) is expected to be the largest contributor in FY 2025-26, followed closely by power, railways, and coal & mining sectors. Road assets alone are projected to generate Rs 0.3 Lakh Crores through monetisation. Overall, asset monetisation in FY 2025-26 is expected to exceed the Rs 1.8 Lakh Crores achieved in the previous year by 5-10%.

A wide spectrum of industries will contribute to asset classes and land parcels under NMP 2.0, including:

• Ports

• Warehousing and Storage

• Coal and Mines

• Telecommunications

• Civil Aviation

• Roads and Railways

• Electricity

• Petroleum and Natural Gas

• Urban Infrastructure (including housing and transportation)

COMPANY PROFILE

Founded in 1959, Afcons Infrastructure Limited (referred to as Afcons or The Company) is the flagship infrastructure engineering and construction company of the Shapoorji Pallonji Group, a prestigious and multifaceted Indian conglomerate. With a rich history of over sixty years, Afcons has built an exceptional legacy, renowned for executing numerous technologically complex EPC (Engineering, Procurement, and Construction) projects both domestically and on the global stage. Operating across five core infrastructure business verticals, Afcons has built a strong track record of execution excellence, consistently delivering landmark projects on or ahead of schedule.

The Companys equipment base comprises a wide range of heavy machinery and specialised equipment carefully curated to align with its strategic objectives. This extensive inventory, coupled with the capability to internally manage specialised machinery and swiftly mobilise high-tech equipment as required, has been a key enabler in securing and delivering complex, large-scale projects. This has further reinforced the Companys execution capabilities and strengthened its growth outlook.

BUSINESS VERTICAL-WISE PERFORMANCE

Business Vertical	Description	Order Book % (as of
		31st March, 2025)
Marine &	• Ports & Harbours	12
Industrial	Jetties
	• Dry Docks
	• Wet Basins
	• Breakwaters
	• Outfall & Intake structure
	• LNG Tanks
	• Material Handling Systems

 

Business Vertical	Description	Order Book % (as of 31st March, 2025)	Business Vertical	Description	Order Book % (as of 31st March, 2025)
Surface Transport	• Highways & Roads • Interchanges • Mining-related Infra • Railways	5	Hydro & Underground	• Dams & Barrages • Tunnels (including large road tunnels) & Underground Works • Water & Irrigation	24
Urban Infrastructure	• Elevated & Underground Metro Works • Bridges & Flyovers • Elevated Corridors	55
			Oil & Gas	• Offshore Oil & Gas • Onshore Oil & Gas	4

RISK AND MITIGATION

Risks	Description	Mitigation
Economic Risk	The infrastructure and construction industry is highly susceptible to shifts in the macroeconomic environment. Volatility in key parameters such as interest rates, inflation, currency exchange rates, and changes in governmental policies can have a profound impact on project costs, timelines, and overall profitability. Economic slowdowns, recessions or reductions in infrastructure investments, both by governmental and private sectors can lead to delays or cancellation of projects, thereby adversely affecting the Companys financial performance and long-term growth outlook.	Afcons mitigates economic risks through a strategically diversified business and robust order book comprising projects in India and international markets, thereby reducing its dependency on any single geography or sector. In the Indian market, the Companys portfolio spans projects funded by central and state governments, as well as private sector clients, ensuring broad exposure across multiple funding sources and reducing vulnerability to sector-specific or policy- driven downturns. Afcons has extensive international operations and has a presence or has delivered projects in 30 countries since inception across Africa, the Middle East, Southeast Asia, and South Asia. This geographic diversification insulates the Company from region-specific economic or political challenges, ensuring stability of revenue streams. Afcons has a consistent track record of project resilience, with no project that has reached execution stage ever been terminated, demonstrating the Companys robust project selection processes, prudent risk assessment practices, and effective project management capabilities. Additionally, Afcons emphasis on projects with protective clauses for escalation, delays beyond its control safeguarding its commercial interests. The Companys focus on critical and strategic infrastructure segments such as metros, expressway, railways further strengthens its position, as these sectors typically continue to receive sustained investment support even during periods of economic slowdown.
Environmental Risks	The infrastructure and construction sector, due to the inherent nature of its operations, is extensively impacted by environmental factors, including unpredictable natural catastrophes. Phenomena like earthquakes, floods,	Afcons adopts multi-pronged and proactive approach to mitigate environmental risks. The Company strives that project contracts include adequate clauses to protect against force majeure events, unforeseen environmental occurrences and natural calamities. Afcons maintains a Contractors All Risk (CAR)
Risks	Description	Mitigation
	hurricanes, tornadoes, and fires pose significant risks, capable of disrupting active projects and creating unforeseen challenges.	insurance policy and other relevant policies across its project portfolio, which provides financial protection against potential losses or damages arising from environmental events, ensuring business continuity and minimizing the financial impact on the company. Detailed due diligence and site-specific risk assessments are conducted at tender stage to evaluate potential environmental and climate risks. For several specific projects, Afcons undertakes detailed weather forecasting and site specific environmental studies during the tender stage to ensure highest standards of safety and preparedness during project execution. The Company has project-specific emergency response plans to manage and mitigate the impact of unforeseen environmental events, minimising disruptions and ensuring workforce safety.
Geographical & International Risk	The Companys international operations expose it to complex management, legal, tax, and economic risks, including difficulties in enforcing contractual rights, foreign currency risks, compliance with foreign laws, and potential adverse tax consequences. Geopolitical tensions in certain countries can also pose risks.	Afcons mitigates geographical and international risks through diverse regional presence across East and West Africa, South Asia, Southeast Asia and the Middle East, ensuring no overdependence on any single country. All overseas project collections are in USD or Euro, eliminating local currency risks. The Company also adopts currency hedging strategies to safeguard against exchange rate fluctuations. Additionally, the Company conducts rigorous legal, tax, and geopolitical due diligence during bid and execution phases and ensures compliance with host country regulations. To foster seamless operations and align with local norms, Afcons partners with regional firms, recruits and trains local workforces, and builds strong relationships with government bodies. This approach not only strengthens its local engagement but also ensures smoother project execution and minimises potential risks arising from geopolitical or legal challenges.
Concentration Risk	The predominant source of the Companys current orders stems from the public sector, encompassing both central and state government contracts. A potential reduction in government capital expenditure or a decline in the financial health of state governments could affect Afcons growth trajectory and elongate its operational cycle.	Afcons mitigates concentration risks by diversifying its client base across various government authorities, including multiple central and state government agencies, as well as private sector clients. Within state government, the Company target projects from multiple state departments to reduce reliance on any single revenue source. The Companys robust project selection framework emphasises thorough risk assessment, ensuring that the projects it pursues have reliable funding and financial structures, which minimises the risk of funding shortfalls or delays. Afcons also focuses on projects that have strong funding tie-ups and secure financing, targeting projects backed by multilateral agencies such as JICA, World Bank, ADB, AfDB, ensuring a stable financial backing. This approach enables Afcons to maintain a healthy mix of revenue sources and insulates the
Risks	Description	Mitigation
		Company from overdependence on any particular client type or region. Further, Afcons maintains a well-diversified infrastructure portfolio across roads, metros, railways, ports, bridges, hydro, tunnels, water supply, oil & gas. This sectoral diversification mitigates the risk of overexposure to any single infrastructure segment, ensuring a balanced and resilient order book.
Reliance on Suppliers	The Companys reliance on third-party suppliers for key construction materials exposes it to risks, including potential disruptions or deterioration in the quality of supplied goods. Such deficiencies could negatively affect Afcons market standing, operational efficiency, and financial results. Moreover, uncontrollable external factors could lead to supply chain interruptions, thereby jeopardising the Companys financial health, operational performance, and cash flow stability.	The Company has established long-term and trusted relationships with key suppliers, supported by rate contracts that ensure material availability and price stability. Majority of the Companys projects have escalation clauses, protecting against unforeseen raw material price hikes. During the tendering stage, the SCM team along with BU team conducts comprehensive due diligence to assess supplier capabilities and explore alternative sourcing channels. The Company also maintains a diversified vendor base and regularly conducts supplier performance assessments to ensure quality and reliability. With the help of digital tools, SCM team works closely with project teams to proactively identify potential supply chain issues, enabling real-time tracking and timely corrective actions.
Interest Rate Fluctuations	Afcons is subject to risks arising from interest rate fluctuations, which could reduce the profitability of projects and adversely affect its business, financial condition, and results of operations.	Afcons mitigates interest rate risks through prudent treasury management and disciplined financial planning. The Company maintains an optimal mix of short-term and long-term borrowings to ensure liquidity and cost efficiency. Its strong project selection and risk management framework focuses on securing projects with healthy cash flows during the construction phase, thereby reducing reliance on external working capital financing. Additionally, the Company also strives that contracts and payment terms are in a manner that supports self-sustaining project cash flows. Further, Afcons actively monitors interest rate trends and maintains adequate liquidity buffers to enhance resilience against interest rate fluctuations.
Labour Shortage and Dependence on Contract Labour	Construction and infrastructure companies are confronted with considerable challenges in recruiting and retaining proficient talent, while simultaneously striving to meet the increasing demand for their services. A lack of available skilled workers represents a critical risk to project delivery and productivity benchmarks, particularly when engaging in new undertakings.	Afcons mitigates labour shortage risks by proactively forecasting workforce requirements based on its project pipeline and aligning manpower, equipment, and inventory accordingly. The Company conducts comprehensive training programmes, including dedicated skill enhancement initiatives for both its direct workforce and subcontractor teams, ensuring availability of skilled labour across projects. Afcons also partners with external training institutions to create a steady talent pipeline. To further enhance retention, morale, and productivity, the Company
Risks	Description	Mitigation
		implements robust labour welfare measures such as regular health camps, quality accommodation, and safety-driven incentive schemes.
High Price of Raw Materials	The rising costs of raw materials and cement are hindering the expansion prospects of the construction industry, leading to a marked decline in buyer enthusiasm. Supply chain bottlenecks are contributing to material scarcities. Furthermore, certain international projects undertaken by the Company are based on fixed-price agreements, which limits flexibility in managing these increasing costs.	Afcons mitigates the risks of rising raw material prices through a combination of proactive procurement strategies, contractual safeguards and robust risk management. The Company maintains long-term rate contracts and relationships with key suppliers of steel, cement ensuring price stability and availability. Most projects of Afcons have price escalation clauses enabling it to pass on price hikes to clients, particularly in domestic projects. During the tendering stage, the SCM and BU teams conduct rigorous due diligence to assess raw material needs, evaluate supplier capabilities, and explore alternative sourcing options. Historical data and analytics are used to forecast potential price movements of raw material, which are factored into tender pricing. For fixed-price international projects, Afcons undertakes comprehensive risk assessment and builds contingencies into pricing to mitigate price rise of key materials. The Company also leverages digital tools for real-time tracking and enhanced forecasting accuracy, and maintains buffer inventories to manage short-term supply chain disruptions.
Failure to Qualify For or Win New Contracts	Afcons secures contracts via rigorous competitive bidding process, with its business performance reliant on its proficiency in submitting compelling bids and securing project awards from owners.	With over 60 years of experience across diverse infrastructure segments, Afcons possesses the credentials and technical qualifications to independently qualify and bid for majority of the projects. The Company leverages its extensive historical database of tendering & estimation, pricing trends and market intelligence to sharpen bid strategies and cost estimates thereby enhancing project win rates. Regular benchmarking and cost optimisation initiatives are undertaken to ensure bids remain competitive without compromising profitability. In certain cases where Afcons target a new market, whether in terms of geography or infrastructure sub-sector where it may lack specific PQ or as a risk mitigation strategy, the Company selectively forms JVs or consortiums with reputed domestic and international partners. Additionally, Afcons maintains continuous engagement with clients throughout the project lifecycle, offering innovative, value-added solutions that strengthen client relationships and create differentiation from competitors.

 

Particulars	FY 2024-25	FY 2023-24	Change (%)
Revenues (in Crores)	12,966.66	13,285.34	(2.40)
EBITDA (in Crores)	1,759.15	1,571.43	11.95
PAT (in Crores)	586.13	442.12	32.57
Current Ratio (in times)	1.32	1.06	-
Debt-Equity Ratio (in times)	0.47	0.80	-
Debt Service Coverage Ratio (in times)	0.78	1.66	-
Return on Equity (ROE) (in %)	14.84	15.39	-
Inventory Turnover Ratio (in times)	3.49	3.27	-
Trade Receivables Turnover Ratio (in times)	3.67	4.20	-
Trade Payables Turnover Ratio (in times)	2.16	2.33	-
Net Capital Turnover Ratio (in times)	4.66	22.52	-
Net Profit Ratio (in times)	4.69	3.43	-
Return on Capital Employed (ROCE) (in %)	0.20	0.22	-
Return on Investment (ROI) (in %)	0.08	0.07	-

HUMAN RESOURCES

Afcons views its employees as the linchpin of its organisational strength. Guided by the principle of nurturing leaders from within, the Company dedicates significant resources to identifying, honing, and empowering talent, ensuring that its workforce remains dynamic, capable, and ready to lead.

The Company provides a conducive environment that motivates individuals to showcase their skills, celebrates excellence, and rewards high performance. This thriving and motivating workplace has empowered Afcons to attract, develop, and retain top talent for over six decades. As of 31^st March 2025, the total number of employees of the Company stood at 3,892. This workforce reflects a diverse mix of professional backgrounds, qualifications, and deep industry expertise.

The Company continues to invest in its people by fostering a culture of leadership, inclusion, continuous learning, and well-being. With a strong global presence across 13+ countries and a workforce representing over numerous nationalities, Afcons is building a future-ready, diverse, and agile organisation.

The Companys HR strategy in FY 2024-25 focused on digital transformation, employee empowerment, and operational excellence ensuring that the organisation remains aligned with its business goals and capable of navigating a rapidly evolving industry landscape.

Key HR Initiatives in FY 2024-25:

• Leadership Development: Under the Central

Development Council, programmes like PRAGATI (Project Managers), CMDP (Contract Managers), and SAKSHAM (Project Coordinators) were conducted. Leadership initiatives such as SP SHIKHAR and SP UDAAN, managed by Shapoorji Pallonji Group Centre HR, continued to nurture senior and mid-management talent.

• Learning & Development: Through the Afcons Talent Management Academy (ATMA), the Company delivered technical, functional, and behavioural training across domains like civil engineering, equipment, finance, HR, and planning.

• Employee Well-being: The Whole Wellness Model addressed physical, emotional, mental, and spiritual health, promoting a balanced and fulfilling work environment.

• HR Innovation: End-to-end digitalisation across the HR lifecycle improved efficiency, transparency, and employee experience.

• Employee Engagement: Initiatives like Anubandh, the Wall of Unity, and active social media engagement fostered connection, pride, and collaboration across the organisation.

CAUTIONARY STATEMENT

The Management Discussion and Analysis includes forward-looking statements identified by terms such as plans, expects, will, anticipates, believes, intends, projects, estimates, and similar expressions, as defined under applicable securities laws and regulations. These statements pertain to the Companys future business prospects, strategies for growth, product development, market position, expenditures, and financial performance. However, such forward-looking statements are subject to various risks and uncertainties, and actual results may differ significantly from the projections made.

The uncertainties associated with these statements include, but are not limited to, factors such as fluctuations in earnings, challenges in managing growth, competition (both domestic and international), economic conditions in India and other target markets, the ability to attract and retain skilled professionals, potential time and cost overruns in contracts, challenges in managing international operations, changes in government policies, fiscal deficits, regulatory changes, interest rates, and general economic conditions.

Past performance should not be considered indicative of future outcomes. The Company does not commit to announcing any corrections if these forward-looking statements prove to be materially inaccurate in the future, nor does it undertake to update any forward-looking statements made from time to time on its behalf.