Bondada Engineering Ltd Management Discussions

1. GROWTH PROSPECTS & FUTURE OUTLOOK

The Company continues to witness significant opportunities across its core business segments of Telecom Infrastructure and Solar EPC. The increasing adoption of digital technologies, expansion of telecom networks, government-led infrastructure initiatives, and the growing focus on renewable energy are expected to create sustained demand for the Companys services. With its proven execution capabilities, strong industry relationships, and expanding customer base, the Company is well- positioned to capitalize on emerging opportunities in both sectors.

2. INDIAN TELECOM INDUSTRY

The Indian telecommunications industry remains one of the largest and fastest-growing telecom markets globally and continues to play a critical role in supporting Indias digital economy. As of March 2026, Indias total telephone subscriber base stood at approximately 1.33 billion, while broadband subscribers exceeded 1.06 billion, reflecting continued growth in connectivity and digital adoption.

The sector is undergoing rapid transformation driven by nationwide 5G expansion, increasing fiberization, cloud adoption, digital services growth, and accelerating data consumption. 5G services are now available across virtually all districts of the country, with telecom operators continuing investments in network densification, optical fiber deployment, and Fixed Wireless Access (FWA) solutions. The Governments Digital India Program, National Broadband Mission 2.0, BharatNet expansion, and indigenous telecom manufacturing initiatives continue to strengthen the industrys long-term growth prospects.

The industry structure remains largely consolidated with Reliance Jio, Bharti Airtel, Vodafone Idea, and BSNL/MTNL as the major service providers. Industry participants are increasingly focusing on network quality, customer experience, infrastructure sharing, and monetization of 5G investments.

Key Industry Growth Drivers

• Growing demand for high-speed broadband and digital services.

• Increasing adoption of 5G-enabled applications and enterprise connectivity solutions.

• Expansion of Fixed Wireless Access (FWA) and IoT ecosystems.

• Continued investments in telecom fiber infrastructure and data centers.

• Government initiatives promoting rural broadband access and digital inclusion.

• Rising use of cloud computing, OTT content, artificial intelligence, and Industry 4.0 applications.

Despite challenges relating to spectrum costs, regulatory compliance, right-of-way permissions, and capital intensity, the telecom sector is expected to remain a key contributor to Indias economic development and digital transformation.

3. TELECOM INFRASTRUCTURE

Telecom infrastructure continues to be the foundation of digital connectivity and comprises telecom towers, optical fiber cable networks, power systems, small cells, and associated equipment that support wireless and wireline communication services.

The rapid rollout of 5G, increasing network traffic, and expansion of enterprise connectivity solutions are creating substantial infrastructure requirements across both active and passive network segments.

Active Infrastructure

Active infrastructure includes:

• Spectrum

• Radio access network equipment

• Antennas and receivers

• Switches and transmission equipment

• Microwave communication systems

Passive Infrastructure

Passive infrastructure includes:

• Telecom towers

• Power supply systems, batteries, DG sets, and associated equipment

• Optical Fiber Cable (OFC) networks

• Small cells and street furniture supporting 5G networks

4. EXPECTED GROWTH IN TELECOM TOWER BASE

Indias telecom tower ecosystem continues to expand in response to growing mobile data traffic and 5G deployment requirements. Industry estimates indicate that the number of telecom towers is expected to cross 10 lakh towers by FY 2030, supported by network densification and enhanced coverage requirements.

Growth is expected to be driven by:

• Continued 5G expansion requiring higher site density.

• Deployment of small cells and distributed antenna systems.

• Growth of Fixed Wireless Access (FWA) services.

• Expansion into rural and underserved markets.

• Increased infrastructure sharing among telecom operators.

• Emergence of smart city, IoT, and private enterprise network applications.

The Companys telecom infrastructure capabilities position it favorably to benefit from these long-term industry developments.

5. EXPECTED GROWTH IN TELECOM FIBER BASE

Optical fiber remains the backbone of next-generation networks and is essential for supporting high-capacity broadband infrastructure, data centers, enterprise connectivity, and 5G backhaul requirements.

Indias cumulative optical fiber network has expanded significantly, exceeding 42 lakh route kilometers, while the Government continues to extend broadband connectivity across rural regions through BharatNet and related initiatives.

The telecom sector is expected to witness strong fiber deployment activity over the next several years due to:

• 5G backhaul requirements.

• Increasing fiberization of telecom towers.

• Expansion of FTTH (Fiber-to-the-Home) services.

• Growth of hyperscale and edge data centers.

• Smart city projects and enterprise digital transformation initiatives.

• Government initiatives under National Broadband Mission 2.0 and BharatNet.

The Companys expertise in telecom EPC, fiber rollout, and network deployment creates substantial growth opportunities within this segment.

6. TECHNOLOGY UPGRADES: EXPANSION OF 4G AND 5G NETWORKS

The continuing coexistence of 4G and 5G technologies is creating significant opportunities across telecom infrastructure deployment and network modernization.

While 4G remains the dominant technology for mass-market mobile connectivity, 5G adoption continues to accelerate owing to superior speed, lower latency, and enhanced network capabilities.

The transition to 5G is increasing demand for:

• Telecom tower augmentation.

• Small cell deployment.

• Fiberized backhaul infrastructure.

• In-building network solutions.

• Power management systems.

• Enterprise connectivity solutions.

In addition to consumer mobility services, 5G is enabling new use cases across manufacturing, logistics, healthcare, smart cities, industrial automation, and digital infrastructure development.

The Company expects to continue benefiting from increased infrastructure spending by telecom operators and network service providers.

7. SOLAR EPC

The Company continues to strengthen its presence in the Solar EPC segment by leveraging its project execution capabilities, experienced management team, and customer relationships.

The renewable energy sector in India remains a priority focus area for the Government, providing substantial opportunities for EPC companies involved in utility-scale solar projects, captive power installations, rooftop solar systems, and hybrid renewable energy solutions.

The Company continues to actively pursue opportunities from leading renewable energy developers and public sector undertakings, including NTPC, SECI, BHEL and other large infrastructure developers.

8. SOLAR INDUSTRY IN INDIA

India has emerged as one of the worlds fastest-growing renewable energy markets. As of March 2026, the countrys installed solar capacity exceeded 150 GW, reflecting strong growth supported by favorable government policies, private sector investment, and increasing demand for clean energy.

The Government remains committed to achieving its renewable energy objectives, including the long-term target of 500 GW of non-fossil fuel capacity by 2030. Continued policy support, transmission infrastructure development, and domestic manufacturing initiatives are expected to further accelerate solar deployment.

9. GROWTH DRIVERS

• Government focus on renewable energy expansion and energy security.

• Increasing electricity demand from industrial and commercial consumers.

• Strong growth in utility-scale solar projects.

• Rising adoption of rooftop and distributed solar solutions.

• Growth in green hydrogen projects requiring renewable power.

• Increasing corporate sustainability and ESG commitments.

• Expansion of energy storage and hybrid renewable projects.

10. INDUSTRY OUTLOOK

The Indian Solar EPC market is expected to maintain strong growth momentum over the medium to long term, supported by record renewable energy additions, increasing private investments, and government-backed programs such as PM Surya Ghar and PM-KUSUM. Solar installations in India have reached unprecedented levels, creating sustained demand for EPC services across utility-scale, commercial & industrial (C&I), and rooftop solar segments.

Emerging opportunities are expected in:

• Utility-scale solar projects.

• Solar-plus-storage projects.

• Green hydrogen-linked renewable energy infrastructure.

• Floating solar projects.

• Commercial & industrial captive power projects.

• International EPC opportunities in developing markets.

11.CHALLENGES AND RISKS

• Fluctuation in solar module and equipment prices.

• Supply chain constraints and geopolitical risks.

• Project execution delays due to land acquisition and approvals.

• Intense industry competition affecting pricing and margins.

• Working capital requirements for large-scale projects.

12. OPPORTUNITIES FOR THE COMPANY

The Company believes that its experience in telecom infrastructure execution, project management expertise, and growing presence in renewable energy projects provide a strong platform for future growth.

With increasing investments in digital infrastructure and renewable energy, the Company expects sustained opportunities in:

• Telecom tower and fiber infrastructure deployment.

• 5G network rollout projects.

• Telecom EPC and network modernization services.

• Utility-scale solar EPC projects.

• Renewable energy infrastructure development.

• Operations & Maintenance (O&M) services.

The Company remains focused on operational excellence, prudent risk management, customer diversification, and efficient capital utilization to create long-term value for all stakeholders.