Dhruv Consultancy Services Ltd Management Discussions

DHRUV CONSULTANCY SERVICES LIMITED

Economic Overview

Indias economic outlook continues to remain resilient, supported by prudent fiscal management, sustained public investment, and structural reforms aimed at strengthening long-term growth. The Union Budget 2026, presented by Honble Finance Minister Smt. Nirmala Sitharaman, marks a significant milestone in Indias fiscal journey, reinforcing the Governments commitment to infrastructure- led development while maintaining fiscal discipline.

The Budget outlines a threefold national priority of accelerating economic growth, fulfilling citizens aspirations through capacity creation, and ensuring inclusive development under the vision of Sabka Saath, Sabka Vikas. To achieve these objectives, the Government has identified six key intervention areas: scaling up manufacturing in strategic and frontier sectors, rejuvenating legacy industries, creating Champion MSMEs, strengthening infrastructure development, ensuring long-term energy security, and developing City Economic Regions.

The continued emphasis on capital expenditure, logistics infrastructure, regional connectivity, and industrial expansion is expected to generate significant opportunities across engineering consultancy, project management, transportation planning, airport infrastructure, and infrastructure advisory services

Industry Structure and Developments

Infrastructure continues to remain one of the strongest pillars of Indias economic development, with transportation infrastructure serving as a critical enabler of industrial growth, logistics efficiency, regional connectivity, and urban transformation. The Governments continued emphasis on capital expenditure, multimodal connectivity, and integrated infrastructure development is reinforcing the sectors role in enhancing productivity, improving supply chain efficiency, and attracting private investment across the economy.

The Union Budget 2026 has further strengthened this growth trajectory by prioritising infrastructure as a key driver of long-term economic expansion. The Union Government has budgeted Rs. 12.22 lakh crore towards capital expenditure for FY 2026-27, while effective capital expenditure is estimated at Rs. 17.15 lakh crore, reflecting the Governments continued commitment to creating productive assets and strengthening infrastructure-led growth.

The focus on developing City Economic Regions, expanding logistics networks, promoting manufacturing-led growth, and improving connectivity is expected to generate sustained demand for engineering consultancy, project management consultancy (PMC), Detailed Project Reports (DPRs), construction supervision, and technical advisory services.

Government Capital Expenditure

Growth in Union Government capital expenditure (t lakh crore)

Roads and Highways

The roads and highways sector continues to constitute one of the largest segments of Indias infrastructure landscape. The sector has witnessed cumulative investments of approximately Rs. 28.5 lakh crore since FY2017, reflecting sustained public investment in improving national and regional connectivity.

State-level investments have gained considerable momentum, particularly in Maharashtra, Uttar Pradesh, Gujarat, Tamil Nadu, Rajasthan, and Odisha, creating diversified opportunities for consultancy firms engaged in DPR preparation, PMC, construction supervision, and independent engineering services.

Although National Flighway project awarding has moderated due to land acquisition challenges and execution delays, policy measures aimed at improving project preparedness are expected to support execution efficiency over the medium term. (Source: Indian Road Sector_Care)

National Highway Construction Pace

Construction pace (km / day)

Airports and Aviation Infrastructure

The aviation sector continues to emerge as an important growth area within Indias infrastructure ecosystem. The Governments continued emphasis on expanding airport infrastructure, strengthening regional air connectivity, modernising aviation facilities, and integrating airports with broader multimodal transport networks is expected to create significant opportunities for engineering consultancy and project management services.

The development of new airports, expansion of existing terminals, enhancement of airside and landside infrastructure, and improved connectivity through road, rail, and urban transport systems are expected to increase demand for planning, design, engineering, and supervision services. These initiatives support the broader objective of creating seamless transportation ecosystems that facilitate economic growth, tourism, trade, and regional development.

For Dhruv Consultancy Services Limited, with its established expertise in consultancy engineering, highways, airport infrastructure, project management consultancy, and technical advisory services, these evolving sectoral developments present favourable long-term opportunities across Indias expanding infrastructure programme.

MoRTH Budget Allocation FY2026-27

Budget Estimates ( Rs. crore)

The Union Budget 2026 continues to strengthen investment in road infrastructure through higher allocations for NHAI and road development.

Major States by Road Capital Outlay

FY2025 Budget Estimates ( Rs. crore)

State governments are expected to remain major contributors to road infrastructure investments, creating diversified opportunities for consultancy firms.

Aviation Market Outlook and Growth Opportunities

Indias aviation sector continues to emerge as one of the fastest- growing segments of the countrys infrastructure ecosystem, supported by rising passenger demand, expanding regional connectivity, and sustained public investment in airport infrastructure. India is currently the third-largest domestic aviation market globally, with the number of operational airports increasing from 74 in 2014 to 165 by July 2026, reflecting the Governments continued commitment to strengthening air connectivity across metropolitan as well as Tier-ll and Tier-Ill cities.

The Governments Modified UDAN Scheme, approved with an outlay of Rs. 28,840 crore for the period FY 2026-27 to FY 2035- 36, aims to develop 100 additional airports, 200 modern helipads, and strengthen regional aviation infrastructure while improving last- mile connectivity. The scheme has already operationalised over 679 routes across 95 airports, heliports, and water aerodromes, benefiting more than 1.68 crore passengers and significantly expanding the countrys regional aviation network.

Simultaneously, large-scale greenfield airport developments and terminal expansion projects, including Navi Mumbai, Noida (Jewar), Mopa, Kannur, and Bhogapuram airports, demonstrate Indias continued investment in creating world-class aviation infrastructure capable of supporting future passenger and cargo growth. (Source: Press Information Bureau)

Dhruv Consultancy Services Limited has steadily expanded its presence in the aviation infrastructure sector by leveraging its expertise in engineering consultancy, project management consultancy, construction supervision, and technical advisory services. The Companys multidisciplinary capabilities in planning, design, surveying, and project execution enable it to participate across various stages of airport infrastructure development, including runway and taxiway planning, landside connectivity, utility infrastructure, terminal-area development, and associated transportation networks.

As India accelerates investments in airport expansion, regional connectivity, and multimodal infrastructure integration, the Company is well positioned to capitalise on emerging opportunities within the rapidly evolving aviation infrastructure market.

Government Policy Initiatives

The Governments continued focus on integrated infrastructure planning through initiatives such as PM Gati Shakti, the National Infrastructure Pipeline (NIP), Bharatmala Pariyojana, Sagarmala, UDAN, and the development of City Economic Regions is reshaping Indias infrastructure ecosystem. These initiatives aim to improve multimodal connectivity, enhance logistics efficiency, reduce transportation costs, and promote balanced regional development.

The increasing emphasis on technology-driven planning, digital project monitoring, sustainable infrastructure, and faster project implementation is expected to strengthen the demand for engineering consultancy, Detailed Project Reports (DPRs), Project Management Consultancy (PMC), independent engineering services, and technical advisory solutions across transportation infrastructure.

Emerging Infrastructure Trends

The infrastructure sector is witnessing a gradual shift towards integrated planning, digitalisation, and sustainability. The adoption of technologies such as Geographic Information Systems (GIS), Building Information Modelling (BIM), drone-based surveys, LiDAR mapping, intelligent transport systems, and digital project monitoring is transforming the planning and execution of infrastructure projects.

Additionally, the growing emphasis on resilient infrastructure, green construction practices, and climate-conscious project planning is influencing project design and execution across roads, airports, urban infrastructure, and industrial developments. These evolving trends are creating new opportunities for consultancy firms possessing multidisciplinary technical capabilities.

Company Overview

Dhruv Consultancy Services Ltd is an Indian infrastructure consultancy firm with over two decades of experience in planning, designing and managing complex infrastructure projects. Established in 2003, the Company has evolved from a roads and highways consultancy into a multidisciplinary infrastructure partner with capabilities across roads and highways, expressways, bridges, tunnels, railways, metro, airports, buildings, ports, PFHE and urban infrastructure.

With 200+ completed projects across 23 states, experience with 25+ government clients and a team of400+ engineers and infrastructure professionals, Dhruv offers end-to-end services covering **feasibility studies, DPR preparation, design and engineering, project management, construction supervision, O&M, asset management and technical advisory.

Infrastructure consultancy continues to be at the core of the Companys business. Dhruv has contributed to major assignments including the Missing Link on the Mumbai-Pune Expressway, Delhi-Vadodara section of the Delhi-Mumbai Expressway, Narnaul Bypass and NH-11, Savitri River Bridge and several National and State Flighway projects. The Company is also strengthening its capabilities in large *6-lane and 8-lane highways and expressways. During the year, Dhruv expanded into Wayside Amenities, securing its first assignment, including the Verul Wayside Amenity project near the Ellora Caves. The Company is also exploring opportunities in airport and aviation infrastructure leveraging its expertise in transportation planning, mobility, engineering and project management.

Dhruv successfully completed its first international assignment in Mozambique, a World Bank-funded project, marking an important milestone in its global journey. The Company also emerged as the Most Responsive Bidder for a project in Ghana and continued to pursue opportunities in Saudi Arabia and other international markets.

Dhruv is well positioned for its next phase of growth. From a four- memberteam in 2003 to 200+ completed projects across 23 states, the Companys journey reflects its focus on technical excellence, long-term relationships, diversification and sustainable growth.

Financial Overview Revenue from operations

The Companys total revenue for FY 2025-26 stood at Rs.4,395.60 lakhs as against Rs.10,352.06 lakhs in FY 2024-25, registering a decrease of Rs.5,956.46 lakhs. The decrease was primarily on account of revisions in project cost and margin estimates pursuant to a detailed review of select long-term contracts, as elaborate in the Directors Report.

The impact is primarily accounting in nature and does not involve any corresponding cash outflow or impact on the Companys operational cash flows. Despite the same, the Company continues to have a healthy order book and positive project-level profitability across most of its ongoing assignments.

Total Expenses

The Companys total expenses for FY 2025-26 stood at Rs.8,169.37 lakhs as against Rs.9,433.06 lakhs in FY 2024-25, registering a decrease of Rs.1,263.69 lakhs.

Depreciation and amortisation expense

Depreciation and amortisation expense for FY 2025-26 stood at Rs.435.35 lakhs, as compared to Rs.453.61 lakhs in FY 2024-25.

Finance Cost

Finance cost for FY 2025-26 stood at Rs.149.21 lakhs, as compared to Rs.205.16 lakhs in FY 2024-25. The reduction is primarily attributable to improved working capital management and lower reliance on external borrowings during the year.

Profit after Tax

The Company reported a Loss After Tax of Rs.2,842.12 lakhs for FY 2025-26, as compared to a Profit After Tax of Rs.690.32 lakhs in FY 2024-25. The loss for the year was primarily on account of revisions in project cost and margin estimates in accordance with Ind AS 8 and Ind AS 115, as explained in the Directors Report.

Earnings Per Share

The Company reported an Earnings Per Share (EPS) of ( Rs.14.76) for FY 2025-26, as compared to Rs.4.14 in FY 2024-25. The decline in EPS is primarily attributable to the loss reported during the year, arising from revisions in project cost and margin estimates in accordance with Ind AS 8 and Ind AS 115, as explained in the Directors Report.

Networth, Capital Employed and Returns

The net worth of the shareholders stood at Rs.4,395.60 lakhs as at 31 March 2026, as compared to Rs.10,349.93 lakhs as at 31 March 2025.

Capital employed for the year 2025-26 is Rs. 8173.72 Lakhs.

Return on Equity (ROE) for FY 2025-26 stood at (39.28%), as compared to 6.72% in FY 2024-25.

EBITDA

EBITDA for FY 2025-26 stood at ( Rs.31.89) crore, as compared to Rs.15.78 crore in FY 2024-25, reflecting a significant decline in operating performance. The decline was primarily attributable to lower operating revenues coupled with higher project-related, administrative and other operational expenses during the year.

Human Capital

At Dhruv Consultancy Services Limited (DCSL), we believe that our people remain the driving force behind our continued growth and execution excellence. Guided by our core values of Freedom to Dream, Connect, Grow, and Collaborate, we continue to foster an inclusive, performance-oriented, and learning-driven workplace. During FY 2025-26, the Company strengthened its talent acquisition and employee development initiatives to support its expanding business operations. FIR successfully mobilized manpower for 14 newly awarded projects, achieving approximately 98% timely deployment, while critical positions were filled within planned timelines, including leadership hiring for the Airport Strategic Business Unit. The workforce comprised 294 employees on regular rolls and 92 consultants, supported by 88 new regular hires and 36 consultant engagements during the year.

Employee engagement remained a key focus through career progression opportunities, competency development programmes, and continued support for higher education, professional certifications, and skill enhancement initiatives.

Our Learning and Development framework continued to strengthen professional and personal capabilities through structured training programmes identified during feedback and appraisal discussions. During the year, employees participated in 20 training sessions, covering areas such as project management, BIM implementation, contracts management, aerodrome operations, road safety, cross-cultural communication, and change management, with a cumulative 1,907 training hours delivered.

The Company also continued its digital FIR transformation by leveraging Spine FIRMS, Spine Payroll, Spine Asset Management, and Zoho Expenses to enhance employee data management, payroll administration, asset tracking, and reimbursement processes.

Looking ahead, DCSL remains committed to strengthening its talent pipeline, enhancing employee capabilities through focused training programmes, and fostering a high-performance culture that supports the Companys long-term growth and business objectives.

Outlook

Dhruv Consultancy Services Limited remains focused on strengthening its position as an infrastructure consultancy and project management services provider, with particular emphasis on the roads and highways sector. During FY 2025-26, the Company continued to pursue opportunities across highways and allied infrastructure segments, while strengthening its capabilities to participate in large-scale infrastructure development projects.

The Companys strategic focus remains on diversifying its project portfolio and expanding into high-growth infrastructure segments, including highways, Wayside Amenities, airport infrastructure, railways and metro projects. The Companys involvement in the Wayside Amenities project represents an important step towards expanding its presence beyond conventional consultancy services and creating opportunities in integrated highway infrastructure and allied services.

Going forward, the Company intends to focus on securing new consultancy and project management assignments, including opportunities funded by multilateral development institutions and financial institutions, and to strengthen its capabilities for undertaking Lenders Independent Engineer (LIE) and similar technical advisory assignments. These initiatives are expected to support the Company in broadening its client base and creating more diversified and sustainable revenue streams.

The Company also continues to evaluate opportunities in international markets, particularly in regions offering significant infrastructure development potential. Its experience in international road and infrastructure projects provides a foundation for pursuing selective opportunities in overseas markets while maintaining a disciplined approach towards project selection and execution.

Capability development and adoption of technology will remain important areas of focus. The Company intends to strengthen its technical expertise, project monitoring capabilities and use of technology-driven solutions to improve project execution, operational efficiency and service delivery. The Company will continue to remain responsive to emerging opportunities arising from Indias infrastructure development and the increasing demand for specialised consultancy and project management services.

With its established experience in infrastructure consultancy, diversified project capabilities and continued focus on new business opportunities, the Company remains committed to creating sustainable long-term value while supporting the development of Indias infrastructure ecosystem.

Innovation & Technological Advancement

Innovation and technology continue to play a pivotal role in strengthening the Companys engineering capabilities and operational excellence. As the infrastructure sector increasingly adopts digital engineering, automation, and data-driven decisionmaking, the Company remains focused on integrating technology across its project execution and business operations.

During FY 2025-26, the Company continued to strengthen its digital capabilities through Building Information Modelling (BIM) initiatives and technology-enabled project execution practices, while enhancing internal processes through digital platforms such as Spine FIRMS, Spine Payroll, Spine Asset Management, and Zoho Expenses to improve operational efficiency and workforce management.

Going forward, the Company will continue investing in digital technologies, Al-enabled project monitoring, and capability enhancement initiatives that improve engineering accuracy, strengthen collaboration, and support efficient project delivery. Guided by the theme "Built to Endure - Navigating Challenges Building the Future," the Company remains committed to building a resilient, technology-enabled engineering organisation capable of delivering sustainable value in an evolving infrastructure landscape.

Corporate Social Responsibility

As a responsible corporate citizen, Dhruv Consultancy Services Limited remains committed to contributing to the socio-economic development of the communities it serves. In line with its CSR policy and the provisions of the Companies Act, 2013, the Companys initiatives during FY 2025-26 focused on education, healthcare, rural development, and tribal welfare through contributions to Mangubai Public Charitable Trust, BBN Global Association, and Nature Walk Charitable Trust. These efforts reflect the Companys belief in inclusive growth and its ongoing commitment to supporting organizations that create a positive and sustainable impact at the grassroots level.

Particulars	FY 2025-26	FY 2024-25	Change(%)
Operating margin (%)	-87.08%	9.60%	-77.85%
Debt/Eguity Ratio	0.27	0.15	-82%
Return on eguity (%)	-39.82%	6.72%	-685%
Earnings per share (Rs.).	-14.76	4.14	-10.62%
Debtors Turnover (in times)	211.25	75.43	135%
Interest Coverage Ratio	-24.33	6.18	-8.86%
Current Ratio (in times)	2.29	3.26	-28%
Net profit ratio (%)	-66.24%	6.82%	-1072%

Risk and Concerns

Dhruv Consultancy Services Limited operates in the infrastructure consultancy and project management sector, which is subject to various economic, regulatory, project-specific and competitive factors. The Companys business is substantially dependent on the pace of infrastructure development, project awards, government and institutional spending, and timely execution of projects. Any slowdown in infrastructure investments, delays in project awards or changes in government priorities may impact the Companys order inflows and business performance.

The Companys business involves participation in competitive bidding processes. Increased competition, pricing pressure and changes in tender conditions may affect the Companys ability to secure new assignments and may exert pressure on project margins. The Company therefore continues to evaluate opportunities based on their technical suitability, commercial viability, execution requirements and risk-return profile.

Project execution remains an important area of consideration.

Infrastructure projects may be affected by factors such as delays in statutory approvals, land acquisition, changes in scope, client- related dependencies and other circumstances beyond the Companys direct control. Such factors may affect project timelines, billing and collections. The Company seeks to manage these risks through regular project monitoring, coordination with clients and stakeholders and deployment of experienced technical and project management personnel.

The Companys financial performance is also influenced by the timing of project awards, execution and receipt of payments from clients. Delays in certification or collection of receivables may affect working capital and cash flows. The Company continues to monitor receivables and project-related cash flows and undertakes regular follow-up with clients for timely certification and collection.

Availability and retention of qualified technical personnel is another key consideration, given the knowledge-intensive nature of consultancy and project management services. The Companys ability to execute projects effectively depends on the availability of experienced engineers, technical professionals and project management personnel. The Company continues to focus on strengthening its technical capabilities and retaining experienced resources in line with its project requirements.

The Company is also exposed to regulatory and contractual risks arising from the nature of infrastructure projects and its obligations towards clients and regulatory authorities. Changes in applicable laws, regulations, contractual requirements or government policies may have an impact on project execution and compliance requirements. The Company monitors applicable regulatory developments and reviews its contractual and compliance obligations on an ongoing basis.

As the Company continues to explore new infrastructure segments and business opportunities, including Wayside Amenities and other allied infrastructure projects, such expansion may involve new execution requirements and competitive challenges. The Company intends to pursue such opportunities in a calibrated manner, considering its technical capabilities, available resources and commercial viability.

The Company is also evaluating opportunities to diversify its client and project portfolio, including consultancy and advisory assignments and opportunities in international markets. While such diversification may provide additional avenues for growth, international and new-market assignments may involve jurisdiction- specific regulatory, contractual, commercial and geopolitical considerations, which are assessed before undertaking such projects.

Overall, the Company remains focused on identifying and managing risks proactively while maintaining prudent financial and operational practices. The management continues to monitor the evolving infrastructure environment and takes appropriate measures, wherever required, to mitigate risks that may have a material impact on the Companys operations and financial performance.

Internal Control System and their adequacy

The Company has established a robust internal control system that is commensurate with the size and nature of its operations. The Company periodically reviews its internal control framework to ensure its adequacy, effectiveness, and alignment with statutory and operational requirements. Internal audits are conducted regularly by independent professionals, and their findings and recommendations are reviewed by the management and the Audit Committee. Based on these evaluations, corrective actions are taken to strengthen controls and improve business processes.

The management believes that the existing internal control systems are adequate and effective and provide a reasonable assurance regarding the reliability of financial reporting and compliance with applicable laws and regulations.

Cautionary Statement

This annual report contains certain forward-looking statements and may contain certain projections. These forward-looking statements generally can be identified by words or phrases such as aim, anticipate, believe, expect, estimate, intend, objective, plan, project, will, will continue, will pursue, seek to or other words or phrases of similar import. Similarly, statements that describe strategies, objectives, plans or goals are also forward-looking statements.

Such statements are subject to numerous risks and uncertainties and are not necessarily predictive of future results. Actual results may differ materially from those expressed or implied in the statements. Crucial factors that could make a difference to the companys operations include economic conditions affecting demand and supply and price conditions in the market in which the company operates, changes in government regulations, tax laws and other statutes, and other incidental factors.