Atlantaa Ltd Management Discussions

1. INDIAN ECONOMY

India continued to demonstrate resilience during FY 2025-26 despite persistent geopolitical uncertainties, global in ationary pressures, supply chain disruptions and volatility in commodity prices. Supported by strong domestic demand, sustained Government capital expenditure, improving manufacturing activity and robust growth in the services sector, the Indian economy remained one of the fastest-growing major economies globally.

According to advance estimates released by the Government of India, the countrys real Gross Domestic Product (GDP) is estimated to have grown by approximately 6.5% during FY 2025-26. Growth was primarily driven by higher public investment in infrastructure, increased private consumption, improved agricultural output supported by a normal monsoon, and continued expansion in the digital economy.

The Government maintained its focus on infrastructure-led economic development through continued investments in highways, railways, airports, metro rail projects, logistics parks, urban infrastructure and renewable energy. Capital expenditure remained a key pillar of economic policy, creating signi cant opportunities for companies operating in the engineering, procurement and construction (EPC) and infrastructure sectors.

Indias manufacturing sector continued to strengthen under initiatives such as Make in India, the Production Linked Incentive (PLI) Schemes and the National Infrastructure Pipeline (NIP), while initiatives including the PM Gati Shakti National Master Plan and Bharatmala Pariyojana continued to enhance multimodal connectivity and improve logistics e ciency.

The Company believes that the Governments continued emphasis on infrastructure development, coupled with increasing investments in transportation, urban development, logistics and industrial corridors, will continue to generate signi cant business opportunities for the infrastructure and construction sector. Atlantaa Limited remains well positioned to capitalize on these opportunities by leveraging its execution capabilities, project management expertise and disciplined approach towards business growth.

(A) INFRASTRUCTURE

Infrastructure sector is a key driver for the Indian economy. The sector is highly responsible for propelling Indias overall development and enjoys intense focus from Government for initiating policies that would ensure time-bound creation of world class infrastructure in the country. Infrastructure sectors include power, bridges, dams, roads, and urban infrastructure development.

The Indian economy is expected to grow by 6.6 per cent in 2025 and 6.7 per cent in 2026, supported by solid private consumption and investment growth, according to the United Nations (UN) agship report, World Economic Situation and Prospects 2025

(a) Capital investment outlay for infrastructure has been increased by

11.21 lakh crore (US$ 128.64 billion), which would be 3.1 % of GDP. FDI in construction development (townships, housing, built-up infrastructure and construction development projects).

(b) Construction (infrastructure) activity sectors stood at 1,32,601.17 crore (US$ 26.76 billion_ and 2,50,628.61 crore (US$ 35.24 billion), respectively, between April 2000-September 2024.

The Ministry of Development of North-Eastern Region (MDoNER) sanctioned 90 projects with a total cost of 3,417.68 crore (US$ 391.08 million) under the North-East Special Infrastructure Development Scheme (NESIDS) during the past three nancial years (FY22 to FY24) and the ongoing FY25.

(d) The Indian government raised the Union Housing and Urban A airs Ministrys budget by 18% to 96,777 crore (US$ 11.07 billion) for FY26, with major allocations for urban development, housing, and street vendor support.

(e) The Union Minister of Finance, Ms. Nirmala Sitharaman announced plans to connect 120 new airports over the next 10 years, bene ting four crore additional passengers.

(f) In October 2024, the Ministry approved 50 National Highway projects spanning 1,026 km in Manipur, with 44 projects covering 902 km located in the hills. Of these, 8 projects totaling 125 km have been completed, while 36 ongoing projects, with an investment of Rs. 12,000 crore (US$ 1.43 billion), will cover the remaining 777 km.

(g) Union Budget 2025-26 is complemented with a continuation of the 50-year interest-free loan states for capital expenditure and incentives for reforms., with a signi cantly enhanced outlay of

1.5 lakh crore (US$ 17.30 billion).

(h) Under the Union Budget 2025-26, the budgetary allocation for the Ministry of Road Transport and Highways (MoRTH) is 2.87 lakh crore, an annual increase of 2.4% on a y-o-y basis. The Build-Operate-Transfer (BOT) model by the government o ers contractors long-term revenue opportunities through the operation and maintenance phases of an infrastructure project. Meanwhile, the business continues to focus on opportunities in this segment by partnering with BOT concessionaires for the EPC scope of the project.

(B) REAL ESTATE:

The Indian real estate market is one of the most recognised sectors in the nation. It majorly comprises four subsectors: housing, hospitality, retail, and commercial. The growth of this sector is a major contributor to the growth of the entire economy. The Indian real estate market is the second highest employment generator after agriculture. The sector serves the growing urban needs of the population and has become the backbone of the nations infrastructure.

The growth in real estate largely depends on the demand generated. It is true that the market witnessed a signi cant decline in real estate demand during the COVID pandemic between 2020 and 2021. However, the industry bounced back quickly, witnessing a demand higher than before.

Initial Setback and Recovery

The real estate market was hit severely by the COVID-19 pandemic. It su ered a loss of around INR 1 Lakh Crore. At the beginning of 2021, there was a sharp decline in the residential real estate market. The market went down by almost 40%. It is in comparison to the previous year. There was a sharp decline in the sale of residential units. It almost touched 1.38 Lakh units in 2020. Whereas, this number was around 2.61 Lakh in 2020.

Although a signi cant decline, it was only short-lived as the real estate market quickly picked itself up post-2021. Sales rebounded signi cantly, reaching 2.33 lakh units by 2021 end, marking a 51 percent YOY (Year on year) increase.

Post the pandemic, India became one of the few markets in APAC (Asia-Paci c) region to showcase a positive o ce absorption.

Growth of the Indian Real Estate Sector

The Indian real estate market is expected to reach USD 1 trillion by 2030. This is a signi cant up from USD 200 billion in 2021. Currently the sector contributes to 13 percent of the nations GDP. If circumstances continue to prevail, the real estate sector can potentially reach USD 10 trillion by 2047.

Indias retail landscape is expected to witness substantial boost with around 41 million sq. ft of retail developments between 2024 and 2028. These developments are expected in seven major cities.

Factors Driving Real Estate Growth in India

Considering the nancial years 2022 to 2032 (a decade), here are some factors that will most de nitely in uence the real estate market in India. These factors are and will continue contributing towards the growth of the realty sector.

Increase in Market Size

As mentioned above, the real estate market in India is expected to reach USD 1 trillion by the year 2030. This will only be possible with a stable rise in demand for commercial, residential and industrial real estate. Since India is witnessing population growth, urban expansion and increasing incomes, real estate is also expected to signi cantly

Increased Demand for Premium and Commercial Properties

People with high net worth are seeking premium properties with state-of-the-art amenities. Commercial real estate has also witnessed a boom since start ups, MNCs and IT industries are seeking modern o ce spaces.

Rapid Urbanisation

The urban population is expected to rise by 416 million by the year 2050. This urban growth will continue to fuel demand for housing, infrastructure and commercial spaces. Due to increased migration, better jobs and expanding employment infrastructure, demand for residential and commercial properties will continue to grow.

Better Infrastructure

Improvements in infrastructure brings a noticeable impact on the growth of the real estate sector. Initiatives such as improvement in metro rails, roadways and development of smart cities increase accessibility, making areas more appealing for investors.

International Investments

Due to relaxed foreign direct investment (FDI) rules, India attracts many global investors. High returns along with easier investment options makes the country popular among foreign nationals. These further fuels the Indian real estate market growth.

2. SEGMENT WISE PERFORMANCE

2.1. GOVERNMENT INITIATIAVE AND INVESTMENT

A. Bharatmala Pariyojana

Continued development of economic corridors, border roads, coastal roads, and expressways.

Focus on improving logistics e ciency and reducing travel time across the country.

B. PM Gati Shakti National Master Plan

Integrated planning of roads, railways, ports, airports, logistics parks, and utilities through a digital GIS platform.

Enhanced coordination among various Ministries for faster project implementation.

C. National Infrastructure Pipeline (NIP)

Continued investments in transport, energy, urban infrastructure, water resources, and social infrastructure.

Increased opportunities for EPC contractors and infrastructure developers.

D. National Highways Development

Continued expansion, widening, strengthening, and maintenance of National Highways through the Ministry of Road Transport & Highways (MoRTH) and the National Highways Authority of India (NHAI).

E. Hybrid Annuity Model (HAM), EPC and BOT Project

Continued award and execution of highway projects under various implementation models, providing opportunities for private sector participation.

F. PM Gram Sadak Yojana (PMGSY)

Continued focus on improving rural connectivity through construction and upgradation of rural roads.

G. Metro Rail and Urban Transport Projects

Ongoing metro rail expansion and urban mobility projects across major Indian cities, generating demand for civil construction services.

2.2. ACHIEVEMENTS OF THE MINISTRY OF ROAD TRANSPORT & HIGHWAYS (MORTH)

The Ministry of Road Transport & Highways (MoRTH) continued to strengthen Indias road infrastructure during FY 2025 26 through sustained investments in National Highways, expressways, road safety, and digital initiatives. The Ministrys focus on enhancing connectivity, reducing logistics costs, and improving transportation e ciency has signi cantly contributed to economic growth and regional development.

o Expansion of National Highway Infrastructure

The Ministry continued to expand and modernize the National Highway network through the development of economic corridors, access-controlled expressways, border roads, coastal roads, and strategic connectivity projects. These initiatives are aimed at improving freight movement, reducing travel time, and strengthening multimodal connectivity across the country.

o Progress in Highway Construction

As of December 31, 2025, the Ministry had constructed approximately 4,989 kilometres of National Highways and awarded 2,257 kilometres of new highway projects during FY 2025 26. These projects are expected to further enhance connectivity between industrial hubs, ports, logistics parks, and urban centres.

o Development of High-Speed Corridors

MoRTH continued the implementation of access-controlled expressways and high-speed corridors under agship infrastructure programmes. The Ministry targeted the operationalisation of approximately 5,800 kilometres of high-speed corridors during FY 2025 26, aimed at reducing travel time and improving logistics e ciency across key economic corridors.

o Road Safety and Engineering Improvements

Road safety remained a key priority during the year. The Ministry accelerated the identi cation and recti cation of accident-prone "black spots", implemented road safety audits, improved highway signage and engineering standards, and promoted the adoption of Intelligent Tra c Management Systems (ITMS) to enhance highway safety.

o Asset Monetisation and Private Sector Participation

MoRTH continued to encourage private sector participation through Public-Private Partnership (PPP) models and highway asset monetisation. During FY 2025 26, the Ministry targeted mobilisation of 30,000 crore through asset monetisation and continued to expand programmes such as Toll-Operate-Transfer (TOT) and Infrastructure Investment Trusts (InvITs), thereby creating additional resources for infrastructure development. o Improved Regional Connectivity

Special emphasis was placed on improving road infrastructure in the North-Eastern States, tribal regions, border areas, and Left Wing Extremism (LWE) a ected districts. These initiatives are expected to promote balanced regional development, improve accessibility, and facilitate socio-economic integration.

o Digital Transformation of Highway Services

The Ministry further strengthened digital governance through widespread implementation of FASTag-based electronic toll collection, improved project monitoring systems, and adoption of technology-driven tra c management solutions. These initiatives have enhanced operational e ciency, reduced congestion at toll plazas, and improved user convenience.

o Contribution to Economic Growth

Continued investment in road infrastructure has strengthened Indias logistics ecosystem by reducing transportation costs, improving supply chain e ciency, facilitating trade and commerce, generating employment opportunities, and supporting industrial and rural development. The ongoing expansion of the National Highway network is expected to remain a key driver of Indias long-term economic growth.

3. RISKS AND CONCERNS

The key risks and concerns include:

1. Project Execution Risk

Delays in project execution due to land acquisition issues, regulatory approvals, adverse weather conditions, labour shortages, supply chain disruptions, or unforeseen site conditions may impact project timelines, increase costs, and a ect pro tability.

2. Funding and Liquidity Risk

Infrastructure projects require signi cant capital investment and working capital. Delays in customer payments, increased borrowing costs, or limited access to nancing may impact liquidity and project execution.

3. Contractual and Legal Risk

Infrastructure projects involve complex contractual arrangements and may give rise to disputes relating to scope changes, delays, claims, arbitration, or recoveries, which could a ect nancial performance and cash ows.

4. Order Book and Competitive Risk

The Companys future growth depends on securing new projects through competitive bidding. Intense competition, pricing pressures, and changes in government spending priorities may a ect the Companys order in ows and pro tability.

5. Health, Safety and Environmental Risk

Construction activities involve inherent occupational health, safety, and environmental risks. Failure to maintain appropriate safety standards or comply with environmental regulations may lead to operational disruptions, penalties, or reputational damage.

6. Macroeconomic and Geopolitical Risk

Economic slowdown, in ationary pressures, interest rate uctuations, geopolitical developments, and global supply chain disruptions may in uence infrastructure investments, project costs, and business sentiment

4. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The company has an adequate internal control system in place, which is regularly monitored and updated to safeguard assets, comply with regulations and promptly address any issues. All signi cant transactions are authorized, recorded and reported correctly. The audit committee diligently reviews internal audit reports, takes corrective action as required and maintains open communication with both statutory and internal auditors to ensure the e ectiveness of internal control systems.

5. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE.

Financial overview:

Total revenue from operations decreased from 2,949.44 Lakhs

in FY 2024-25 to 2,722.59 Lakhs in FY 2025-26.

Other income Decreased from 3,156.08 lakhs in FY 2024-25 to

1,310.68 Lakhs in FY 2025-26.

Finance costs increased from 44.34 Lakhs in FY 2024-25 to

68.61 Lakhs in FY 2025-26

Pro t after tax decreased from 6349.07 Lakhs in FY 2024-25 to

408.07 Lakhs in FY 2025-26

Consolidated Performance:

Total revenue from operations increased from 6,809.91 Lakhs in FY 2024-25 to 7,390.39 Lakhs in FY 2025-26.

Other income decreased from 3,143.62 Lakhs in FY 2024-25 to

1,964.74 Lakhs in FY 2025-26.

Finance costs Increased from 382.94 Lakhs in FY 2024-25 to

1088.04 Lakhs in FY 2025-26.

There was a Pro t after tax in the FY 2024-25 was 4257.17 Lakhs compared to Loss after tax of 171 Lakhs in FY 2025-26.

6. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES

/ INDUSTRIAL RELATIONS FRONT, INCLUDING

NUMBER OF PEOPLE EMPLOYED.

Number of employees at the beginning of the year 53

Number of the employees at the end of the year 53

7. KEY FINANCIAL RATIOS

Particulars	FY 2026	FY 2025	Variance	Reason for major variance
Current ratio (in times)	10.39	17.56	-7.17	Due to increase in short term borrowing
Debt-Equity ratio (in times)	-	-	-	-
Debt service coverage ratio (in times)	5.18	18.00	-12.82	Due to absence of their necessary component would lead to illogical results
Return on equity ratio (in %)	1.21	20.95	-19.74	Due to decrease in the pro tability of the Company
Inventory turnover ratio	0.15	0.06	0.09	Due to absence necessary component (Saleable Inventory) Inventory in the form of work in progress of development real estate new project ratio calculation will lead to illogical results
Trade receivables turnover ratio (in times)	0.77	0.51	0.26	Due to reduction of operational income & increase in average debtors
Trade payables turnover ratio (in times)	3.82	1.44	2.38	Due to increase in operational cost & increase in average trade payables average working capital
Net Pro t Ratio	0.15	2.15	-2.00	Due to decrease in the pro tability of the Company due to deferred tax impact as compared to previous year
Return on capital employed (in %)	0.02	0.13	-0.11	Due to increase in the net worth & lower pro t before tax & nance cost
Return on investments (in %)	0.02	0.11	-0.09	Due to increase in the total assets and lower pro t before tax and nance cost