Bharat Global Developers Ltd Management Discussions

Overview

The Company is engaged in diversified trading and business activities across Construction Materials, Gold, Agricultural Products, Textiles, and Other businesses including Electronics, Consultancy and allied activities.

The Companys diversified business model enables it to serve customers across multiple industries and reduces its dependence on any single product category. Management continues to focus on expanding its customer base, strengthening supplier relationships, improving procurement efficiency, maintaining adequate working capital and identifying opportunities in high-growth markets.

The Companys principal business segments are:

1. Construction Materials

2. Gold

3. Agricultural Products

4. Textiles

5. Other Businesses - Electronics, Consultancy and allied activities

Global Economy Overview:

The global economy continues to operate in an environment characterised by moderate economic growth, elevated geopolitical uncertainty, commodity-price volatility and changing financial conditions. According to the World Banks June 2026 Global Economic Prospects, global economic growth is projected to moderate to approximately 2.5% in 2026, compared with 2.9% in 2025, before improving to around 2.8% during 2027-2028. The outlook remains subject to significant downside risks arising from geopolitical tensions, energy-market disruptions, inflationary pressures and tighter financial conditions.

The global economic environment during 2026 has been significantly affected by disruptions in energy and commodity markets. Higher energy and fertilizer prices have contributed to renewed inflationary pressures and increased operating costs across several industries. The World Bank projects global inflation at approximately 4.0% in 2026, compared with 3.3% in 2025. These developments may influence consumer spending, business investment, transportation costs and the profitability of commodity-dependent businesses.

At the same time, investment related to artificial intelligence, digital infrastructure and computing equipment has provided an important source of support to global trade and economic activity. This demonstrates that, despite broader macroeconomic challenges, technology-related investment and productivity improvements continue to create new opportunities across economies.

Emerging markets and developing economies are expected to remain important contributors to global economic activity, although their growth outlook is also being affected by higher energy costs, financing conditions and external trade uncertainties. South Asia remains one of the faster-growing regions, with the World Bank projecting regional growth of approximately 6.3% in 2026, followed by 6.9% in 2027.

Indian Economy Overview:

The Indian economy has continued to demonstrate strong resilience and sustained growth despite a challenging global economic environment characterised by geopolitical tensions, trade disruptions, commodity-price volatility and uncertainty in major international markets. Indias growth has been supported primarily by robust domestic demand, private consumption, capital formation, infrastructure investment and continued expansion of the services sector.

According to the Government of Indias Economic Survey 2025-26, Indias real GDP growth for FY2025-26 is estimated at 7.4%, with domestic demand remaining the principal driver of economic activity. The Survey also indicates that Indias medium-term growth potential has strengthened to around 7%, supported by improving macroeconomic stability, investment, infrastructure development and ongoing structural reforms.

Private consumption remains an important pillar of economic growth. The First Advance Estimates indicate that private final consumption expenditure accounted for approximately 61.5% of GDP in FY2025-26, supported by relatively low inflation, improving purchasing power and stable employment conditions. Investment also remains significant, with gross fixed capital formation estimated at approximately 30% of GDP.

The services sector continues to be a major contributor to Indias economic activity, while manufacturing has shown improvement and agriculture continues to provide stability to the overall economy. The Economic Survey estimates services to account for approximately 51.1% of nominal GDP, while construction contributes approximately 7.8% and manufacturing approximately 12.8%.

About the Company:

Company has been incorporated in the year 1992 and currently engaged in the business of dealing in Construction Materials, Gold, Agricultural Products and Textiles etc.

Financial performance & review

(Rs.In Lakhs)

Particulars	FY 2026	FY 2025
Revenue From operation	2610.79	66858.42
Other Income	108.52	1463.62
Finance Cost	0.00	0.00
Profit Before Tax	-10.43	2159.28
Profit After Tax	-8.60	1602.96
EPS (Basis) (In Rs.)	-0.01	1.60

SEGMENT WISE PERFORMANCE:

(Rs.In Lakhs)

Particulars	Year Ended 31.03.2026	Year Ended 31.03.2025
I. Segment Revenue (Revenue from Operation)
- Construction Material	0.00	12,060.15
- Gold	0.00	25,305.26
- Agricultural Products	2610.79	14,532.91
- Textile	0.00	14,955.85
- Other (Electronics, Consultancy etc..)	0.00	4.25
Total Segment Revenue	2610.79	66,858.42
II. Segment Results
- Construction Material	0.00	110.46
- Gold	0.00	15.66
- Agricultural Products	56.84	755.20
- Textile	-30.90	1,223.94
- Other (Electronics, etc..)	0.00	4.25
- Unallocable Income (Net of Unallocable
	-34.54	(506.55)
Expense)
Total Segment Results	-8.60	1,602.96
III. Segment Assets
- Construction Material	1629.65	1,225.54
- Gold	16702.07	16,724.70
- Agricultural Products	4412.91	5,098.74
- Textile	15214.11	15,663.95
- Other (Electronics, etc..)	0.00	0.00
- Unallocable Corporate Assets	13217.57	12,449.12
Total Segment Assets	51376.31	51,162.05
IV. Segment Liabilities
- Construction Material	14273.00	15,055.38
- Gold	1769.05	2,066.82
- Agricultural Products	2486.08	2,272.59
- Textile	1114.55	1,117.69
- Other (Electronics, etc..)	19.86	19.86
- Unallocable Corporate Liabilities	31713.76	30,629.71
Total Segment Liabilities	51376.31	51,162.05

Outlook

The Company remains cautiously optimistic about its medium- to long-term business prospects. The Indian economy continues to demonstrate strong resilience despite global economic uncertainties, geopolitical developments, energy-price volatility and changing trade conditions. The IMFs July 2026 outlook projects Indias real GDP growth at approximately 6.4% in 2026, with growth expected to strengthen to around 6.7% in 2027. The World Bank similarly expects India to remain among the fastest-growing major economies, although higher energy prices and geopolitical risks may moderate near-term growth.

The Companys diversified presence across Construction Materials, Gold, Agricultural Products, Textiles and Other businesses including Electronics and Consultancy provides multiple avenues for growth and reduces dependence on any single sector.

Risk Management

Key factor in determining a companys performance is the companys ability to manage the risks in its business/environment effectively. Many risks exist in a companys operating environment, and they emerge on a regular basis, Viz Currency Risk, Commodity price Risk, Human Resource Risk. Risk management is embedded in the operating framework of your Company. Your Company believes that managing risks helps in maximizing returns. The risk management framework is reviewed periodically by the Board and the Audit Committee. Like any other industry, the retail industry is also exposed to the risk of competition, government policies, fluctuation of commodity prices, natural factors like change in climate etc.

Opportunities and Threats:

The Companys diversified business model across Construction Materials, Gold, Agricultural Products, Textiles and Other businesses including Electronics and Consultancy provides multiple opportunities for growth. At the same time, the Company operates in markets that are subject to commodity-price fluctuations, changing customer demand, competitive pressures and regulatory developments.

Management continuously evaluates market conditions and seeks to leverage emerging opportunities while implementing appropriate measures to mitigate potential threats.

Internal Control system and their adequacy:

Your Company maintains a system of internal controls designed to provide reasonable assurance regarding the following:

Effectiveness and efficiency of operations Prevention and detection of frauds and errors Effective use of resources Adherence to applicable Accounting Standards and policies Timely preparation of reliable financial information Internal controls and governance processes are duly reviewed for their adequacy and effectiveness on a periodical basis.

The Company has a proper and adequate system of internal control which is proportionate to its size and volume of business. The internal control system of the Company are designed to ensure that the financial and other records are reliable for preparing financial statements and other data for maintaining accountability of assets. The Company has adequate internal control procedures and has well defined business processes to ensure the efficiency and effectiveness of the efforts that go in managing various assets and interests of the Company.

Discussion on Financial Performance with respect to Operational Performance:

The Financial Statements are prepared under the historical cost convention in accordance with Indian generally accepted accounting principles and the provisions of the Companies Act, 2013. All Income and Expenditure having a material bearing on the Financial Statements are recognized on accrual basis. The Management has taken utmost care for the integrity and the objectivity of these Financial Statements, as well as for various estimates and Judgments used therein.

Subordinates

The Company has no subsidiary as on 31st March, 2026.

Material Developments in Human Resources and Industrial Relations Front:

Company takes pride in the commitment, competence and dedication shown by its employees in all areas of business. Your directors wish to convey their gratitude and place on record their appreciation for all the employees at all levels for their hard work, solidarity, cooperation and dedication during the year. Industrial relations were cordial throughout the year.

Details Of Significant Changes (i.e. Change of 25% or more as compared to the immediately previous financial year) in key financial ratios. The Company has identified the following ratios as key financial ratios:

Standalone:

Ratios	Numerator	Denominator	Year ended 31.03.2026	Year ended 31.03.2025	% Change	Reason for change in ratio more than 25%
P&L Ratios
1. Net profit ratio	Profit after tax	Revenue	(0.00)	0.02	-113.74%	The companys Net Profit Ratio has decreased due to proportionately higher increase in the revenue from operations than net profit
2. Interest coverage ratio (in times)	Earnings before interest and tax	Interest	-	-	-
3. Earnings per share	Net Profit available for equity shareholders	Weighted average number of equity shares	(0.01)	1.60	-99.375%	EPS has become negative due to net loss.
Balance sheet ratios:
1. Current ratio	Current assets	Current liabilities	1.62	1.58	2.51%
2. Quick ratio	Quick assets	Current liabilities	1.57	1.54	1.95%
3. Return on equity ratio	Profit after tax	Shareholders equity	(0.00)	0.06	-100.82%	The companys return on equity ratio has decreased because the companys Profit after Tax has decreased
4. Trade receivable s to turnover	Revenue	Average trade receivable	0.08	3.56	-97.89%	The companys Trade Receivables Turnover Ratio has improved due to an