Dhanuka Infra Realty Ltd Management Discussions

INDUSTRY OVERVIEW

India is one of the fastest-growing major economies, supported by rapid urbanization, infrastructure development, industrial expansion and increasing investments across residential, commercial and hospitality assets. Sustained economic growth requires continuous investments in infrastructure, smart cities, commercial developments, housing, transportation and industrial facilities, creating significant opportunities for the real estate and construction sectors.

The Indian real estate sector is one of the most globally recognized sectors, comprising four major subsectors?housing/residential, retail, hospitality and commercial. The sector continues to be driven by rapid urbanization, increasing demand for quality residential and commercial spaces, infrastructure development and growing investments across the country. The construction industry complements the growth of the real estate sector by supporting residential, commercial and infrastructure development. In India, the real estate sector is the second-largest employment generator after agriculture.

BUSINESS OVERVIEW

The Company is engaged in the business of real estate development, commercial construction contracting and allied services. The Company undertakes both residential and commercial real estate developments, with its current strategic focus on commercial real estate projects in Jaipur. The Company has also initiated steps towards entering the hospitality services segment as part of its business diversification strategy.

OVERVIEW OF REAL ESTATE, CONSTRUCTION AND HOSPITALITY SECTOR

The real estate sector is one of the most globally recognized sectors and is the second-largest employment generator in India after agriculture.

The sector comprises four major sub-sectors?housing, retail, hospitality, and commercial. Growth in these sectors is supported by increasing urbanization, expansion of corporate offices, demand for commercial spaces, modern residential developments, tourism, and improved infrastructure.

The construction industry ranks among the largest contributors to Indias economy due to its strong direct and indirect employment generation. The demand for quality residential and commercial developments, commercial infrastructure, and hospitality projects continues to create significant opportunities.

The hospitality sector is also witnessing sustained growth driven by increasing domestic travel, business tourism, improving infrastructure, and rising demand for quality accommodation and related services. The integration of hospitality with commercial real estate is expected to create new avenues for growth in the coming years.

Our Strengths

• Established presence in Jaipurs real estate market.

Strong understanding of Jaipurs commercial real estate market and customer requirements

• Strong brand image and reputation built through consistent focus on quality and customer satisfaction

• Focus on Quality Construction.

• Diversified business model comprising residential development, commercial development, commercial construction contracting and proposed expansion into hospitality services. Strong execution capabilities in commercial construction projects.

• Well qualified and Experienced Management team.

• Cordial relationship between management and employees.

• Ability to identify and develop projects with long-term value creation.

Factors Affecting our Results of Operation

• General economic and demographic conditions.

• Overall condition and performance of the real estate and construction markets.

• Demand, pricing trends and overall market sentiment across residential, commercial, construction and hospitality sectors.

• Changes in regulations affecting the real estate and construction industry, including the Real Estate (Regulation and Development) Act, 2016 (RERA), GST, environmental regulations, and other statutory requirements.

• Companys ability to identify suitable projects and execute them in a timely and cost-effective manner.

• Companys ability to secure construction contracts and successfully execute them.

• Availability of finance on favourable terms for the Company as well as customers.

• Availability and cost of construction materials and skilled manpower.

• Growing competition across real estate, construction, and hospitality businesses.

• Interest rate movements and overall market sentiment.

Segment-wise/product-wise sales performance

The Company is engaged in the business of real estate development, commercial construction contracting and allied services. The Company continues to undertake both residential and commercial real estate developments; however, its strategic focus remains on commercial real estate projects and execution of commercial construction contracts. During the year, the Company also initiated steps towards entering the hospitality services segment as part of its business diversification strategy. Companys Turnover for the current financial year 2025-26 is Rs. 460.14 Lakhs and Standalone total Profit after tax for the current financial year 2025-26 is Rs. 3.85 Lakhs.

OPPORTUNITIES

The Company expects demand for both residential and commercial real estate to remain positive over the medium to long term.

Increasing disposable incomes, rapid urbanization, infrastructure development, expansion of business districts, and favourable demographics continue to support growth in the real estate sector.

The Company also sees significant opportunities in commercial real estate development, commercial construction contracts, redevelopment projects, mixed-use developments, and institutional infrastructure.

The hospitality sector presents additional opportunities arising from increasing tourism, business travel, demand for quality accommodation, and integrated commercial developments. The Company intends to leverage these opportunities through its proposed hospitality initiatives.

THREATS & CHALLENGES

Unfavourable changes in government policies, taxation, and the regulatory environment may adversely impact the performance of the real estate, construction, and hospitality sectors.

There are substantial procedural delays relating to land acquisition, land-use approvals, environmental clearances, project launches, and construction permissions.

Retrospective policy changes, regulatory bottlenecks, fluctuations in input costs, shortage of skilled labour, financing constraints, and intense competition may affect project execution, profitability, and overall business performance.

The Company is also exposed to risks arising from changes in demand for commercial properties, construction contracting opportunities, the proposed hospitality services business and overall macroeconomic conditions.

FINANCIAL AND OPERATIONAL HIGHLIGHTS

• Your Companys total revenue from operations for the financial year 2025-26 stood at Rs. 460.14 Lakhs, while the Profit After Tax (PAT) was Rs. 3.85 Lakhs as compared to Rs. 88.69 Lakhs in the previous financial year. During the year, the Company continued to strengthen its project portfolio, improve operational efficiencies and focus on commercial real estate developments and commercial construction contracts while exploring opportunities for long-term sustainable growth.

OUTLOOK

The Indian real estate sector continues to benefit from improving macroeconomic fundamentals, infrastructure development, increasing urbanization and sustained demand for quality residential and commercial developments. The Company remains focused on strengthening its presence in the commercial real estate segment while continuing to undertake residential developments and commercial construction contracts. The Company also intends to explore opportunities in the hospitality services segment as part of its long-term growth strategy. With its established presence in Jaipur, experienced management team and focus on quality execution, the Company is well positioned to capitalize on emerging opportunities and create sustainable value for its stakeholders in the coming years.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Companies Act, 2013 re-emphasizes the need for an effective Internal Financial Control system in the Company. The system should be designed and operated effectively. Rule 8(5)(viii) of Companies (Accounts) Rules, 2014 requires the information regarding adequacy of Internal Financial Controls with reference to the financial statements to be disclosed in the Boards report.

The Companys internal control system is commensurate with the nature, size and complexities of operations. Adequate records and documents are maintained as required by laws. The company has established well defined polices and processes across the organization covering the major activities. The Companys audit Committee reviewed the internal control system on an ongoing basis keeping in mind the growth prospects and ever evolving business environment. Audit committee reviews proper implementation of corrective measures. All efforts are being made to make the internal control systems more effective.

To ensure effective Internal Financial Controls the Company has laid down the following measures:

>- All legal and statutory compliances are ensured on a monthly basis. Non-compliance, if any, is seriously taken by the management and corrective actions are taken immediately. Any amendment is regularly updated by internal as well as external agencies in the system.

>- Approval of all transactions is ensured through a pre-approved Delegation of Authority Schedule which is reviewed periodically by the management.

>- The Company follows a robust internal audit process. Transaction audits are conducted regularly to ensure accuracy of financial reporting, safeguard and protection of all the assets. Fixed Asset verification of assets is done on an annual basis.

RISKS AND CONCERNS

The Company operates in a dynamic business environment and is exposed to various risks arising from economic conditions, changes in government policies, regulatory developments, fluctuations in demand, availability of finance, construction material prices and competitive market conditions. The Company has established appropriate risk management processes to identify, assess, monitor and mitigate key business risks. Senior management periodically reviews potential risks and takes necessary corrective measures to minimize their impact on the Companys operations and financial performance.

FINANCIAL PERFORMANCE & OPERATIONAL PERFORMANCE:

A. FINANCIAL CONDITION:

Capital Structure:

The Paid-up Share Capital of the Company as on 31st March, 2026 is Rs. 9,54,00,400 divided into 95,40,040 Equity Shares of Rs. 10/- each fully paid up.

During the year the Company has not transfer any amount to Capital Reserve.

Fixed Assets:

During the financial year 2025-26, fixed assets were Rs. 10.45 lakhs Sundry Debtors:

Sundry debtors are Rs. 226.07 lakhs as on 31st March, 2026 as against Rs. 285.53 Lakhs debtors in the previous financial year.

Cash and Bank Balances:

Cash and Bank balances stood to Rs. 51.04 lakhs as against Rs. 10.62 lakhs in the previous year.

Loans and Advances:

Long Term Loans and Advances is NIL in Current Financial Year as against NIL in previous year. Short Term Loans and Advances is NIL as against NIL in the previous financial year.

Current Liabilities:

Current Liabilities as on 31st March, 2026 is Rs. 284.09 lakhs as against Rs. 915.11 lakhs in the previous Financial Year.

B. OPERATIONAL RESULTS

Turnover:

During the financial year 2025-26 the turnover of the Company was 460.14 lakhs and income from other sources as on 31st March, 2026 was 14.76 lakhs as compared to the turnover of the company on 31st March, 2025 as Rs. 312.72 lakhs and income from other sources was Rs. 48.71 lakhs in the previous financial year.

Depreciation:

The Company has provided for depreciation of Rs. 0.39 lakhs during the financial year 2025-26 whereas depreciation of Rs. 0.54 lakhs was provided in the previous financial year.

Tax Expenses:

The Company has provided for tax expenses of Rs. 1.26 lakhs in the financial year 2025-26 whereas in the previous financial year company had provided for tax expenses of Rs. 29.81 lakhs.

Net Profit:

The Net Profit of the Company after tax is Rs. 3.85 lakhs for the Financial Year 2025-26 as compared to Rs. 88.69 lakhs in the previous financial year.

Earnings per Share:

The Earnings per Share of the Company as on 31st March, 2026 is Rs. 0.04 per share for Face Value of Rs. 10/- as against Rs. 1.15 per share for Face Value of Rs. 10/- in the previous financial year.

HUMAN RESOURCES

Management is doing successfully in building experienced team and nurturing them to be leaders. The main motive of the company is trust, integrity, teamwork, innovation, performance and partnership. Various Departments are headed by Professional Qualified Personal, helping our business to remain competitive, achieve greater success and newer milestone.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS

A detail of significant changes in key financial ratios, along with detailed explanations is as follows:

Particulars	Numerator/Denominator	31-March-2026	31-March-2025	Change in %
(a) Current Ratio	Current Assets	4.67	1.65	182.38%
	Current liabilities
(b) Debt-Equity Ratio	Total Debts	0.14	0.83	-82.89%
	Shareholders Equity
(c) Debt Service Coverage Ratio	EarninR available for Debt Service
	Debt Service
(d) Return on Equity Ratio	Profit after Tax	0.27%	8.95%	-97.02%
	Closing Shareholders Equity
(e) Inventory turnover ratio	Total Turnover	0.41	0.26	61.18%
	Average Inventories
(f) Trade receivables turnover ratio	Total Turnover	1.80	1.85	-2.85%
	Average Trade Receivable
(g) Trade payables turnover ratio	Total Purchases	3.71	3.63	2.39%
	Average Trade Payable
(h) Net capital turnover ratio	Total Turnover	0.44	0.52	-15.56%
	Closing Working Capital
(i) Net profit ratio	Net Profit	0.84%	28.36%	-97.05%
	Total Turnover
(j) Return on Capital employed	EarninR before interest and taxes	1.90%	10.22%	-81.44%
	Capital Employed
(k) Return on investment	Return on Investment	0.00%	0.00%
	Total Investment

Reasons for Variances

(a) Current Ratio - Due to Decrease in current liability in comparison to previous year

(b) Debt-Equity Ratio - Due to increase in Equity in comparison to previous year

(c) Debt Service Coverage Ratio - Due to Decrease in Profit in comparison to previous year

(d) Return on Equity Ratio - Due to Decrease in Profit in comparison to previous year

(e) Inventory Turnover Ratio - Due to Increase in Turnover in comparison to previous year

(f) Trade Receivable Turnover Ratio - Due to Increase in Trade Receivable in comparison to previous year

(g) Trade Payable Turnover Ratio - Due to increase in Purchase in comparison to previous year

(h) Net Capital Turnover Ratio - Due to Increase in Closing Working Capital in comparision to previous year

(i) Net profit Ratio - Due to Decrease in Profit in comparison to previous year

(j) Return on Capital employed - Due to Decrease in Profit in comparison to previous year

(k) Return on investment - Due to Decrease in Profit in comparison to previous year

	BY ORDER OF BOARD OF DIRECTORS
	FOR DHANUKA INFRA REALTY LIMITED
	(FORMERLY KNOWN AS DHANUKA REALTY LIMITED)
YOGESH DHANUKA	ADITYA MALPANI
DIN: 01437705	DIN:06428810
(MANAGING DIRECTOR)	(WHOLE-TIME DIRECTOR)
PLACE: JAIPUR
DATE: 02/09/2026