Dhruv Consultancy Services Ltd Management Discussions

Dhruv Consultancy Services Limited Industry Structure and Development

The infrastructure and construction sector in India continues to be a critical driver of the nation?s economic growth. Backed by substantial government expenditure and private sector participation, the industry has shown resilience amidst global and domestic challenges. India?s focus on large-scale infrastructure development through flagship initiatives as the National Infrastructure Pipeline (NIP), PM Gati Shakti, Smart Cities Mission, and BharatMala Pariyojana has provided significant momentum to the engineering, procurement, construction (EPC) segment.

InFY2024–25,thesectorwitnessedincreasedbudgetallocations and policy support for roads, highways, urban transport, and logistics infrastructure. With the government?s commitment to investing over 100 lakh crore in infrastructure over the next few years, the construction and consultancy services industry is poised for long-term growth. The growing emphasis on sustainable infrastructure, digital project monitoring, and technology-driven project execution is reshaping the way infrastructure projects are planned and delivered.

Within this landscape, Dhruv Construction Services Limited operates as a specialist consultancy and services provider, focusing on road infrastructure, transportation systems, urban development, and engineering design. The Company has remained aligned with the evolving needs of the industry by offering integrated solutions including project planning, feasibility studies, detailed engineering, and traffic surveys. The increasing demand for technically sound and timely executed infrastructure solutions has expanded the opportunities for high-quality consultancy and project management service providers.

Furthermore, the adoption of Public-Private Partnership (PPP) models and increasing private sector involvement in infrastructure development have led to greater demand for reliable technical consultants. The sector is also witnessing a shift toward digitization and automation, including the use of Building Information Modelling (BIM), GIS-based planning,al stability, and the investment fisc and AI-driven analytics—all of which open new avenues for companies like Dhruv Construction Services Limited.

As the industry navigates challenges such as project delays, regulatory bottlenecks, and cost domain expertise, robust project execution capabilities, and adaptability to new technologies are expected to emerge as key enablers of India?s infrastructure ambitions.

Global Economic Overview

(Sources: World Bank Global Economic Prospects – June 2025, IMF World Economic Outlook, OECD Economic Outlook)

The global economy in 2025 is beginning to demonstrate encouraging signs of resilience and adaptability, even as it navigates a complex landscape shaped by ongoing geopolitical tensions, structural transitions, and lingering post-pandemic challenges. Amid these dynamics, the world is gradually shifting from short-term recovery efforts toward a longer-term trajectory of sustainable growth and transformation.

According to the World Bank, global GDP is projected to grow by 2.8% in 2025 and further grow by 3.0% in 2026. These growth rate mark a slowdown compared to the pre-pandemic average of 3.7% (2000-2019). After enduring several years of prolonged disruptions, the global economy began to stabilize, though growth remained modest and below historical norms. Growth is being supported by resilient private consumption, targeted government investments in certain regions, and technological such advancements especially in artificial intelligence. This modest yet steady expansion reflects a broad transition towards investment-led and sustainability-oriented growth models, particularly in advanced and middle-income economies. Structural reforms, digital modernization, and climate-conscious investment are becoming central to this economic realignment.

The International Monetary Fund (IMF) offers a somewhat more optimistic outlook, forecasting global output to increase by 3.3% over 2025–2026. This projection is supported by several positive undercurrents:

• A strengthening service sector, particularly in technology, healthcare, and financial services

• A moderation in global on consumers and businesses

• Renewed momentum in private investment flows, signaling improved business confidence and capital availability.

Emerging markets and developing economies (EMDEs) are forecast to grow at a robust 4.2%, with notable momentum in low-income countries driven by large-scale infrastructure programs, digitalization initiatives, and supportive policy reforms. These developments are especially significant for the infrastructure consultancy sector, as they translate into a broader and more diversifiedpipeline of investment opportunities globally. Within this group, low-income countries are showing a particularly strong rebound, bolstered by:

• Large-scale infrastructure investment in transport, energy, and digital connectivity;

• Ongoing policy reforms aimed at improving governance, climate;

• Enhanced support from multilateral institutions and international development partners.

One of the most significant macroeconomic shifts anticipated companies with in 2025 is the continued decline in inflation, particularly in advanced economies. inflationary pressures subside As partly due to stabilizing commodity prices, easing supply chain disruptions, and tighter fiscal controls central banks in many countries are expected to begin easing interest rates, creating improved financing conditions for infrastructure projects, particularly those relying on blended finance or public-private partnership (PPP) models. This gradual monetary loosening could:

• Spur consumer demand and corporate borrowing;

• Revitalise trade volumes and cross-border capital flows;

• Improve conditions for emerging market debt markets and infrastructure financing.

Overall, the global economy appears to be pivoting decisively from the post-pandemic stabilization phase to a period of strategic transformation. This pivot is opening up a new wave of opportunities for countries, industries, and investors—particularly in areas such as:

• Sustainable Infrastructure: There is rising investment in climate-resilient and environmentally sustainable infrastructure, requiring deep technical and regulatory advisory expertise.

• Urbanization & Smart Cities: Urban population growth in EMDEs is fueling demand for integrated urban planning, mobility solutions, and utility infrastructure.

• Digital Infrastructure: The global push toward digital connectivity and smart systems has expanded consultancy opportunities in telecom, data infrastructure, and logistics hubs.

• PPP and Project Structuring: With more governments adopting PPP frameworks, demand has increased for consultancies capable of delivering technical, financial, and legal advisory services across the full project lifecycle.

The challenges facing the global economy are the resurgence of the tariff wars under the trump administration, which has introduced sweeping tariffs on imports from major trading partners, including the European Union, China, Canada, and

Mexico. These measures which is easing pressure have raised the average effective US tariff rate to approximately 22.5% highest since 1909. The ramifications of these trade barriers are extensive. Global trade growth has been revised downward for both 2025 and 2026 due to heightened trade uncertainty and the direct impact of tariffs.

In summary, while significant risks remain including geopolitical fragmentation, climate volatility, and uneven recovery trajectories—the global economic outlook for 2025 is cautiously optimistic. A confluence of structural shifts, policy realignments, and innovation-led investment is laying the foundation for a more inclusive, resilient, and forward-looking global growth paradigm.

The graph below illustrates global GDP growth projections for 2025–2026 from the World Bank and IMF, along with EMDEs? growth and pre-pandemic average growth (2000–2019).

India?s Infrastructure Landscape: Accelerating

Growth in FY 2025-26

The Union Budget for FY 2025-26 marks a decisive acceleration in India?s infrastructure investment, with the capital outlay surging by 12.3% to 12.48 lakh crore (US$150 billion) – representing 3.6% of GDP. This increase builds on the previous year?s momentum and underscores the government?s unwavering commitment to positioning infrastructure as the cornerstone of India?s dual ambitions: achieving a US$5 trillion economy by 2025–26 and advancing toward its 2047 vision of a developed nation. Strategic allocations prioritize climate-resilient, technology-integrated assets that enhance connectivity, decongest urban centres, and drive long-term productivity gains across manufacturing, agriculture, and services.

Transport and logistics remain central to this vision. The government continues to prioritize multimodal connectivity, with roads and highways (45% of sectoral outlay) leading investment targets. Efforts are now hyper-focused on completing the 2.3-lakh-km National Highway network by 2026 exceeding the original 2025 target. Rail infrastructure follows at 30% of allocations, emphasizing dedicated freight corridors, station modernization, and safety systems like Kavach. Urban public transport (15% share) is scaling metro networks across 30+ cities while integrating them with MultiModal Logistics Parks (MMLPs). Aviation and waterways (10%) are expanding strategically, targeting 240 operational airports by 2026 and accelerating the development of 14 national waterways by 2025 toward the 2030 goal of 23.

Flagship initiatives anchor this expansion. The PM Gati Shakti National Master Plan is driving systemic integration of 35+ MMLPs to reduce logistics costs from 14% to 10% of. Complementing this, the National Rail Plan 2047 prioritizes 100% electrification of broad-gauge routes and triple-layer freight corridors. Sustainability is now inseparable from growth: solar-powered highways, hydrogen fuel stations for freight, and coastal shipping networks signal India?s shift toward low-carbon infrastructure. Digitization remains pivotal, with the Unified Logistics Interface Platform (ULIP) enabling real-time cargo tracking across all transport modes.

Private sector participation is critical to scaling ambition. The total infrastructure outlay of 6.2 lakh crore for FY25-26(up from 5 lakh crore in FY24) unlocks unprecedented opportunities. Public-Private Partnerships (PPPs) are expanding rapidly, with over 50 projects – spanning highways, airports (Navi Mumbai, Vijayawada), and MMLPs – structured under Build-Operate-Transfer (BOT) frameworks. Enhanced Viability Gap Funding (30% for green projects), a streamlined National Infrastructure Pipeline (now US$1.8 trillion by 2030), and single-window clearances are catalysing private investment. NABARD?s 20,000-crore Green Fund further de-risks climate-resilient railways. projectslike

Challenges around land acquisition and supply-chain volatility persist, yet India?s infrastructure ecosystem is poised for transformation. With 70% public funding, 25% PPP capital, and 5% FDI, the sector combines scale, policy agility, and sustainability. For infrastructure consultants, this landscape demands expertise in ESG-aligned project structuring, technology deployment (AI/IoT in asset management), and navigating evolving regulatory frameworks. As India accelerates toward its economic targets, robust transport-logistics networks will remain the backbone of inclusive, climate-ready growth – creating fertile ground for innovation and long-term partnerships.

The chart below illustrates the sector-wise allocation of India?s infrastructure capital outlay for FY 2025 26, highlighting the government?s priority on roads, rail, urban transport, and strategic waterways & aviation.

India?s Infrastructure Landscape: Strategic

Imperatives and Sectoral Progress for FY 2025-26

Accelerated Public Investment and Economic Vision

The Union Budget 2025-26 marks a decisive inflection point in India?s infrastructure trajectory, with a capital expenditure outlay of 11.21 lakh crore (US$128.64 billion), constituting 3.1% of GDP. This allocation underscores infrastructure?s centrality to India?s dual ambitions: achieving a US$5 trillion economy by 2025–26 and advancing toward developed nation status by 2047. The 11% year-on-year increase from FY24-25 reflects the government?s commitment to leveraging infrastructure as a GDP multiplier, particularly through climate-resilient assets and integrated multimodal connectivity. Fiscal discipline accompanies this push, with the fiscal deficit targeted at 4.4% of GDP, creating headroom for sustainable investment.

Road Transport: Expanding Networks and Financial Consolidation

India?s road sector continues to dominate infrastructure spending, with the Ministry of Road Transport and Highways receiving 2.87 lakh crore and the National Highways Authority of India (NHAI) allocated 1.87 lakh crore—an 11% year-on-year increase. Strategic priorities include completing the 2.3-lakh-km National Highway network by 2026, exceeding original targets. Notable projectsencompass28flyovers in Rajasthan ( 67,000 crore) and 1,647 km of roads in Assam ( 50,000 crore).

Concurrently, NHAI has reduced its debt burden from 3.3 trillion to 2.8 trillion through rigorous fiscal management, eliminating reliance on internal and extra-budgetary resources for the fourth consecutive year.

Aviation and Ports: Regional Connectivity and Maritime Modernization

Civil aviation allocations rise to 24 billion, supporting the revamped UDAN 2.0 scheme to connect 120 new destinations and serve 40 million passengers over the next decade.

Infrastructure development includes greenfield airports in Bihar and upgrades at Patna and Bihta airports, complemented by cargo handling modernization. Ports and shipping witness a transformative 46% budget increase to 34.71 billion, channelled through the Sagarmala program ( 8.66 billion) and the newly established Maritime Development Fund ( 25,000 crore corpus). Critical waterways development accelerates, targeting 14 operational national waterways by 2025 en route to the 2030 goal of 23, with 17.52 billion granted to the Inland Waterways Authority. The substantial 46% increase in maritime allocations, driven by the Sagarmala Program and Maritime Development Fund, reflects the government?s long-term strategic focus on blue economy potential. Civil aviation, through UDAN 2.0, continues to deepen regional air connectivity, aligning with India?s ambition to democratize air travel.

Budget Allocations : Aviation & Ports (FY 2024-25)

Initiative	Budget (INR Billion)	Key outcomes
UDAN 2.0	24	120 new destinations, 40M passengers
Sagarmala Program	8.66	Modernize ports, enhance cargo handling
Maritime Development Fun	250	Long-term port infrastructure financing
Inland Waterways Authority	17.52	14 operational waterways by 2025

Railways and Urban Transit: Electrification and Metro

Expansion

Rail infrastructure emerges as the second-largest investment priority, with 2,652 billion allocated in FY25-26. Key initiatives include achieving 100% broad-gauge electrification, deploying 455.3 billion for rolling stock (including Vande Bharat train expansions), and advancing the Mumbai-Ahmedabad high-speed corridor. Urban transit receives unprecedented emphasis, with 312.39 billion earmarked for metro and mass rapid transit systems—a 46% increase from FY24-25. These funds will support network expansions across 30+ cities and the Delhi-NCR Regional Rapid Transit System (RRTS), alongside grants of 6.5 billion for regional connectivity. The operating ratio shows improvement at 98.43%, signalling enhanced financial efficiency

This chart presents a comparative analysis of allocations for Railways and Urban Transit across FY2024-25 and FY2025-26, emphasizing increased focus on metro expansion and electrification

Railways & Urban Transit Investment Comparison FY 2024-25 vs FY 2025-26

Financing Mechanisms: Catalysing Public-Private Synergies

India?s infrastructure financing strategy for FY 2025-26 demonstrates sophisticated alignment between public capital and private innovation. The central government anchors investments through 1.5 lakh crore in 50-year interest-free loans to states, while the second phase of the National

Monetization Pipeline (2025-30) targets 10 lakh crore in asset recycling. Public-private partnerships (PPPs) have gained structural momentum, with infrastructure ministries mandated to publish 3-year project pipelines to attract private capital. Enhanced instruments include expanded Viability

Gap Funding (VGF) at 30% for green transport projects, credit enhancement facilities via NaBFID for infrastructure bonds, and liberalized FDI policies permitting 100% ownership in insurance. The newly established Maritime Development Fund with its 25,000 crore corpus and 49% government equity exemplifies targeted sectoral interventions to de-risk port modernization. These mechanisms collectively enable private participation beyond traditional BOT models, particularly for multimodal logistics parks and renewable-powered transport corridors.

Current Progress: Momentum Amid Persistent Challenges

India?s infrastructure ecosystem shows remarkable advancement across sectors, though implementation hurdles remain. Road construction has accelerated to 33.8 km/day, with Bharatmala Phase-I now 75% complete and 22 greenfield expressways underway. Railway transformation continues with 93.83% broad-gauge electrification achieved, bio-toilets installed in 80,478 coaches, and 35 Vande Bharat trains operational. Aviation infrastructure has expanded dramatically, with operational airports surging from 74 (2014) to 157 (2024), while the UDAN scheme has served 1.47 crore passengers through 425 regional routes. Urban transit networks now span 993 km of metro lines, complemented by the Jal Jeevan Mission providing. tap water to 79.74% of rural households. However, land acquisition delays in Rajasthan highway projects, supply-chain bottlenecks for rolling stock, and slow waterways development (only 8 operational against 14 targeted for 2025) continue to challenge progress. The newly launched 1 lakh . crore Urban Challenge Fund addresses municipal capacity constraints by incentivizing cities to become "growth hubs" through integrated redevelopment.

Strategic Positioning for Consultancies

India?s FY25-26 infrastructure agenda represents one of the world?s most ambitious capital formation programs, balancing scale with sustainability imperatives. The confluence of public capital (70%), PPP frameworks (25%), and foreign investment (5%) creates robust opportunities for consultants in project structuring, ESG integration, and technology deployment. As the Nuclear Energy Mission (allocating 20,000 crore for Small

Modular Reactors) and climate-resilient urban initiatives gain momentum, firms offering expertise in AI-driven asset monitoring, circular economy models, and regulatory navigation will lead the transformation. With the PM Gati Shakti platform now extending geospatial data access to private players, consultancies are uniquely positioned to translate India?s 11.21 lakh crore budgetary ambition into operational reality through integrated planning and execution excellence.

Company Overview

Dhruv Consultancy Services Ltd. is a leading Indian infrastructure consultancy firm that has been instrumental in the development of the nation?s infrastructure for over two decades. Established in 2003, the Company specializes in providing comprehensive infrastructure solutions, including design and engineering. Project management consultancy and supervision, technical audits, asset management, pre-bid engineering, and value engineering.

Starting with a single project in Maharashtra, Dhruv Consultancy has expanded its operations across India, undertaking iconic projects such as the Missing Link for the Mumbai-Pune Expressway, the new Savitri River Bridge in Mahad, the Delhi-Vadodara Expressway, and border roads in the northeastern states of Manipur and Arunachal Pradesh. Currently, we are working on 10 major expressway projects, serving a diverse range of clients in both the private and government sectors.

Building on our highways leadership aligned with India?s 2.3-lakh-km NH network target—we are diversifying into high-growth sectors. Our expansion into Wayside Amenities (WSA) leverages NHAI?s user-experience push, while airport modernization (supporting India?s 240-airport vision) and rail/metro consultancy capitalize on record infrastructure allocations. This shift balances our portfolio toward private-sector opportunities.

Concurrently, we are executing our inaugural international project in Saudi Arabia ($22,000 road mandate) and pursuing Lenders? Independent Engineer (LIE) roles with global financiers. Our targeted entry into MENA, Africa, and Southeast Asia aligns with India?s infrastructure diplomacy, transforming domestic expertise into global delivery capability.

Financial Overview

Order Inflow and Order Book

As of March 31, 2025, the company?s total order book stands at 573.3 crore with 299.8 crore of unexecuted orders. During FY 2024 25 company achieved key milestones in expanding and diversifying its order portfolio. Notably, the Company was awarded a General Consultancy contract worth 11.05 crore ant strategic signific by the West Central Railway,markinga entry into the railway infrastructure segment. This project represents a crucial step in our efforts to broaden our domain expertise beyond highway and road infrastructure.

Additionally, we signed an agreement valued at 1.09 crore with Hindustan Construction Company (HCC) for Design Proof Checking of a vital two-lane bridge across Agardanda Creek on the Revas–Reddi Highway. This engagement not only demonstrates our technical capabilities but also marks our foray into the private sector.

Going forward, the Company is actively focused on enhancing its presence in the private sector while continuing to strengthen its robust government order book. This dual-track strategy is expected to drive sustainable growth and reinforce the Company?s position as a leading infrastructure advisory and engineering services provider in India.

Revenue from operations

The company?s revenue from operations recorded a robust growth in its revenue from operations during FY 2024–25. The Company reported revenue from operations of 10,196.47 lakh, marking a 25.1% compared to 8,150.10 lakh in FY 2023–24. This growth was primarily driven by the diversific successful execution of ongoing projects, into new infrastructure segments, and the addition of high-value contracts from both government and private sector clients. The strong revenue performance reflects Company?s operational efficiency, strategic project selection, and its growing presence in India?s expanding infrastructure landscape.

Total Expenses

During FY 2024–25, the company reported total expenses of 9,433.06 lakh, compared to 7,556.10 lakh in FY 2023–24, an increase of 24.8% year-on-year. This increase was primarily driven by the scale-up in project execution activities, expansion into new infrastructure segments, and continued investments in strengthening operational capacity. Employee benefit expenses remained largely stable at 2,279.80 lakh compared to 2,272.72 lakh in the previous year, indicating effective cost control while supporting business growth.

Depreciation and amortisation expense

Depreciation and amortisation expense for FY 2024 25 stood at 453.61 lakh, compared to 492.20 lakh in FY 2023–24. The slight decrease reflects minimal addition to depreciable assets during the year.

Finance Cost

Finance cost for FY 2024–25 stood at 205.16 lakh, showing a decline from 297.80 lakh in FY 2023–24. 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 Profit After Tax (PAT) of 690.32 lakh for FY 2024–25, as compared to 589.50 lakh in FY 2023–24, registering a growth of 17.1%.

Earning Per Share

The Company reported an Earnings Per Share (EPS) of 4.14 for the financial year 2024 25, as compared to 3.88 in the previous year, reflecting a steady improvement. The increase reflects enhanced operational efficiency and overall growth. During the year, 31,33,800 equity shares were issued on a preferential basis at a price of 108 per share (including a premium of 98 per share), thereby strengthening the Company?s capital base and supporting future growth initiatives.

Networth, Capital Employed and Returns

The networth of the shareholders stood at INR 10,349.93 lakhs as of 31st March 2025, as compared to INR 6627.4 lakh as at 31st March 2024.

Capital employed increased to INR 11,888.79 lakh as of 31st March 2025, as compared to INR 8,180.9 lakh as of 31st March 2024.

Return on equity for the FY 2024-25 stood at 6.72%, as compared to 8.90 % in FY 2023-24.

EBITDA

EBITDA for FY 2024–25 increased by 7.0% year-on-year to increase of 1,578 lakh, reflecting the Company?s continued growth in core operations. However, EBITDA margin declined to 15.2%, compared to the previous year, primarily due to higher spending in non-staff operational areas, including project-related and administrative expenses.

Human Capital

At Dhruv Consultancy Services Limited (DCSL), we recognize that our people are the foundation of our success. Our culture—guided by the core values of Freedom to Dream, Connect, Grow, and Collaborate—continues to foster an inclusive, purpose-driven, and growth-oriented work environment.

In FY 2024–2025, we reinforced our commitment to People Development through expanded learning initiatives, enhanced employee engagement practices, and the introduction of the Employee Stock Ownership Plan (ESOP) to foster long-term alignment and ownership. Structured feedback sessions between employees and leadership promoted transparency and alignment, while fresh talent was brought in through campus placements to support workforce renewal.

Our Learning & Development programs focused on both technical and soft skills, leveraging online platforms, workshops, sponsored PG programs, and seminars (domestic optimized use of existing assets and and international). Collectively, employees completed over 1,900 hours of training during the year.

DCSL?s workforce now comprises 398 employees, including 10 freshers, representing four generations, with millennials making up 53%. We remain focused on creating a supportive ecosystem where talent is nurtured, growth is continuous, and

Outlook

Dhruv Consultancy?s strategic focus for FY26 is meticulously aligned with India?s infrastructure acceleration under the Union Budget 2025-26, which allocated 11.21 lakh crore (3.1% of GDP) for capital expenditure. As India targets $5 trillion GDP by 2025–26 and completes critical projects like the 2.3-lakh-km National Highway network, we are doubling down on our highways dominance while expanding into high-growth adjacencies. Our new focus on Wayside Amenities (WSA) leverages NHAI?s user-experience initiatives, transforming highway ecosystems into integrated service hubs. Simultaneously, we are diversifying into airport modernization (aligned with India?s 240-airport target) andrail/metro consultancy, capitalizing on the railways? 2,652 billion allocation. This sectoral shift reduces reliance on public projects and taps into private-sector velocity. To de-risk revenue streams, we are prioritizing empanelment as Lenders? Independent Engineers (LIE) and targeting MDB-funded projects (World Bank, ADB, AfDB). This aligns with India?s 10 lakh crore asset monetization pipeline and new financing vehicles like the Maritime Development Fund ( 25,000 crore). Our inaugural Saudi Arabian road project – a $22,000 private-sector mandate exemplifies our international thrust into high-potential markets like MENA, mirroring India?s global infrastructure diplomacy. Domestically, our new Equipment Services Division addresses India?s 12,500 km/year highway construction pace, while monetizing machinery leasing externally.

Capability building remains core to our execution. Upskilling teams in MDB compliance, AI-driven monitoring, and green infrastructure directly supports India?s sustainability agenda, including PM Gati Shakti?s data-sharing reforms and the National AI Mission. As India races toward its 2047 vision, Dhruv?s integrated strategy balancing sectoral diversification with highways leadership – positions us as catalysts of the nation?s infrastructure renaissance.

Innovation & Technological Advancement

Dhruv Consultancy Services Ltd. (DCSL) drives growth through advanced technology and expertise. Its capabilities include diagnostic hardware (FWDs, MBIUs) for infrastructure assessment and a sophisticated digital design suite (BIM, Bentley Systems) for precision engineering. Operational efficiency is achieved via integrated ERP systems (SAP, Mendix platform) and specialized workforce upskilling.

This convergence of tech, systems, and talent redefines infrastructure delivery. DCSL?s 2025 roadmap prioritizes scaling its integrated ERP, developing predictive maintenance models using IoT field data, and launching "Digital Twin" initiatives for national highways, solidifying its competitive advantage in building India?s progress.

Sustainability Initiatives

At Dhruv Consultancy Services Limited (DCSL), sustainability is an integral part of our infrastructure development philosophy. Our projects are guided by the principles of ecological preservation, resource

We have pioneered sustainable practices across several high-impact projects. Notably, during the construction of the Delhi–

Vadodara Expressway, DCSL implemented India?s first fully integrated drip irrigation system along a national highway, achieving up to 60% water savings and sapling survival in arid zones.

In the area of wildlife conservation, our road and highway designs have incorporated scientifically backed wildlife corridors. For instance, in Andhra Pradesh, we developed elephant underpasses based on seasonal migration data, and in Maharashtra, lion overpasses were planned through detailed ecological assessments and satellite telemetry.

These initiatives reflect our commitment to building infrastructure that not only serves generations but also respects and preserves the natural ecosystem.

Corporate Social Responsibility

As a responsible corporate citizen, Dhruv Consultancy Services Limited remains committed to contributing to the socioeconomic development of the communities it serves. In line with its CSR policy and the provisions of the Companies Act,

2013, the Company?s initiatives during FY 2024 25 focused on education, healthcare, rural development, and tribal welfare through contributions to Mangubai Public Charitable Trust, Raginiben Bipin Chandra Seva Karya Trust, and Vanvasi

Kalyan Ashram. These efforts reflect the Company?s belief in inclusive growth and its ongoing commitment to supporting organizations that create a positive and sustainable impact at the grassroots level.

Particulars	FY 2024-25	FY 2023-24	FY 2023-24
Operating margin (%)	24	24	24
Debt/Equity Ratio	0.15	0.23	-37%
Return on equity (%)	6.72%	8.9%	-25%
Earnings per share (Rs.).	4.14	3.88	+6.70%
Debtors Turnover (in times)	75.43	93.77	-20%
Interest Coverage Ratio	6.18	4.64	33.19%
Current Ratio (in times)	3.26	2.32	40%
Net profit ratio (%)	6.82%	7.23%	-6%

Risk and Concerns

Dhruv Consultancy Services Limited operates in a dynamic and evolving environment where various internal and external factors can influence its performance. The Company maintains a structured approach to identifying, assessing, and mitigating key risks. However, certain industry-specific and business-specific risks may affect the Company?s operations, financial condition, or reputation. The key risks and concerns faced by the Company are outlined below:

Risk Category	Description	Mitigation Measures
Industry and Economic Risks	Exposure to economic slowdown, delays in infrastructure investments, and dependency on government policies.	-Diversify client base across central/state agencies and the private sector
		- Monitor economic trends and adjust bidding strategy accordingly.
Tender-Based Business Risk	Revenue largely depends on successful bidding; high competition can lower margins.	- Focus on value-added services and niche expertise to improve bid competitiveness
		- Maintain robust pre-bid evaluation processes.
Project Execution Risk	Delays due to land acquisition, statutory clearances, or third-party dependencies, impacting delivery timelines and cost control.	- Employ experienced project managers and planning teams.
		- Maintain strong client liaison and contingency planning mechanisms.
Human Capital Dependency	Shortage or attrition of skilled professionals is affecting delivery.	- Invest in training, skill development, and retention programs.
		.- Build a pipeline of talent through campus recruitment and internships
Financial Risks	Delayed client payments—particularly from government agencies—may strain working capital.	- Strengthen follow-up systems for timely collections.
	The concentration of revenue from a limited number of clients can pose risks to income stability.	- Explore new client segments to reduce concentration.
		- Maintain sufficient credit lines.
Technological Risks	Obsolescence of tools and software; cybersecurity vulnerabilities.	- Regularly upgrade to industry-standard tools and platforms.
		- Implement strong IT security protocols and data backup systems.
Regulatory and Legal Risks	Exposure to changes in compliance laws and potential legal disputes.	- Dedicated compliance and legal team for ongoing regulatory monitoring.
		- Maintain proper documentation and contract reviews.
Environmental & Social Risks	Infrastructure projects are often subject to environmental assessments and clearances.	- Conduct comprehensive environmental and social due diligence.
	Delays or failure to comply may result in financial penalties, reputational loss or lack of ESG compliance.	- Implement ESG policy framework aligned with industry norms.
Reputational Risk	Quality lapses, project delays, or disputes may harm the Company?s image.	- Enforce strict quality assurance protocols.- Maintain transparent communication with clients and stakeholders.
		- Focus on client satisfaction and feedback resolution.
Inflation and Cost Escalation	Sudden increases in operating costs (salaries, software licenses, travel, compliance) or inflation may impact margins, especially in fixed-price contracts.	Cost escalation clauses are incorporated in eligible contracts. The Company also employs budget control systems and regularly reviews vendor contracts and procurement strategies for cost optimization.
Audit and Compliance Risk	Inaccurate documentation, oversight filings, tax or delay in regulatory submissions can lead to scrutiny or penalties.	A structured internal audit function ensures quarterly compliance checks. The Company uses digital tools for statutory tracking and real-time dashboard reporting for internal governance.

Internal Control System and its 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 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 identifiedby 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 company?s 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 other incidental factors.