Bhanderi Infracon Ltd Management Discussions

We submit herewith our Management Discussion & Analysis Report on the Companys Business for the year ended 31st March, 2026. We have attempted to include on all specified matters to the extent relevant or within limits that in our opinion are imposed by the Companys competitive position.

OVERVIEW OF INDIAN ECONOMY AND REAL ESTATE INDUSTRY

Aligned with the broader economic momentum, the Indian real estate market reached a historic valuation of USD 585 billion in 2026. As the nations second-largest employer after agriculture, the sector plays a critical role in macroeconomic development, supporting over 250 allied industries, including steel, cement, logistics, banking, and financial services. Industry projections estimate a compounded growth rate of 30% over the next decade, fueled by rapid urbanization, rising disposable incomes, and regulatory frameworks that enhance transparency.

BUSINESS OVERVIEW

Company is engaged in the business of development of the residential and commercial properties and related allied activities. Company has completed construction of Residential and Commercial projects like "Siddheshwar Hill Square", "Siddheshwar Happiness" and "Dharnidhar Homes". Beyond physical asset development, our real estate consultancy and advisory services continue to generate steady fee-based revenue, leveraging our deep domain expertise to guide external stakeholders through project planning and market analysis.

FUTURE OUTLOOKS

The Companys growth strategy for the upcoming fiscal cycles centers on dual operational priorities:

Inventory Monetization: Efficiently marketing and liquidating existing ready-to-move-in inventory to optimize cash flows, reduce holding costs, and maximize liquidity.

Geographical Diversification: Expanding our footprints beyond our core market in Gujarat. The Company is actively assessing high-growth corridors in neighboring states to capture premium market share and diversify risk.

RISK AND CONCERNS:

The Real estate market is inherently a cyclical market and is affected by macro-economic conditions, changes in applicable government schemes, project cost, consumer financing and liquidity etc. Your Company has taken sufficient care to maintain quality of the construction which differentiates company products from market. However, any economic downturn in the years to come, may adversely impact the business.

INTERNAL CONTROL SYSTEMS AND ADEQUACY

The Company maintains a robust internal financial control framework designed to ensure the reliability of financial reporting, compliance with statutory regulations, and safeguarding of assets. The Board of Directors, alongside the Audit Committee, regularly reviews the design and operating effectiveness of these internal controls. For the financial year ended 31st March, 2026, the systems were found to be adequate, efficient, and well-aligned with the scale and complexity of the Companys operations.

DISCLOSURE OF ACCOUNTING TREATMENT

In the preparation of its financial statements, the Company has strictly adhered to the Accounting Standards prescribed under Section 133 of the Companies Act, 2013, read with relevant rules issued thereunder. No alternative or divergent accounting treatments have been adopted during the financial year under review.