Ganesh Infraworld Ltd Management Discussions

1. Economic Review

Global Economy

Despite facing recessionary threats, geopolitical instability, trade disruptions, and inflationary pressures, global economic growth in 2024 remained modest, with world GDP projected at 3.3%. This growth was uneven, primarily propelled by the robust performance of the US economy. Central banks in developed nations, particularly the US Federal Reserve, initiated strategic interest rate cuts as inflation showed signs of easing—though they continue to adopt a cautious stance.

Amid ongoing political and economic uncertainties, including pivotal elections in major democracies, the global economy exhibited resilience. Nonetheless, considerable risks remain, such as escalating geopolitical tensions, stubborn inflation, and potential financial market volatility. At the same time, the global shift toward green energy and digital transformation is opening new avenues for innovation and sustainable economic growth. Addressing these challenges will require coordinated global action and a commitment to long-term development goals.

Outlook

In its April 2025 update, the International Monetary Fund (IMF) revised its global growth forecast for 2025 downward to 2.8%, from an earlier estimate of 3.3%. The slower outlook reflects the impact of new trade restrictions, rising uncertainty, and weakening investor and consumer sentiment.

Indian Economy

India continues to exhibit strong economic resilience amid global headwinds, supported by robust domestic consumption and sustained government spending. Inflation has moderated and liquidity conditions have improved, thanks to timely and effective policy interventions. However, challenges persist in the form of foreign portfolio outflows and currency depreciation. The National Statistical Office (NSO) estimates GDP growth at 6.5% for FY 2024-25, signalling continued economic momentum.

Indias macroeconomic fundamentals remain solid, underpinned by the strength of corporate and financial sector balance sheets. To unlock long-term growth potential—particularly as globalisation trends slow—India must leverage its demographic advantage through structural reforms, deregulation, and productivity- enhancing measures, creating a more competitive and dynamic economy.

Outlook

The Reserve Bank of India (RBI) maintains its GDP growth projection at 6.5% for FY25. This forecast is driven by improved performance in agriculture and industry, resilient rural demand, and strengthening consumer confidence. Despite prevailing global uncertainties, Indias growth trajectory is expected to remain robust, supported by rising private investment and a rebound in rural consumption.

2. Indian EPC Industry Review

According to Mordor Intelligence, the Indian Engineering, Procurement, and Construction Management (EPC) market is projected to grow from US$69.28 billion in 2025 to US$126.91 billion by 2030, registering a CAGR of 12.87% during the forecast period. This robust growth is driven by sustained infrastructure investment, particularly in the power and energy sectors.

However, challenges such as regulatory hurdles, land acquisition issues, and fluctuating raw material prices could potentially moderate growth. The industry is also adapting to emerging trends, such as the increasing adoption of smart grids and digital technologies, which are expected to influence future project development and execution.

The Indian EPC industry is experiencing significant transformation driven by several key trends:

Infrastructure Development and Government Initiatives

The Indian governments National Infrastructure Pipeline (NIP), with investments exceeding Rs.100 lakh crore, remains a critical catalyst for EPC demand. Strategic programmes such as Atmanirbhar Bharat and the Gati Shakti Master Plan aim to improve logistics, connectivity, and self-reliance, accelerating activity across roads, railways, ports, airports, and urban infrastructure. Projects under the Smart Cities Mission, affordable housing, and renewable energy will further bolster EPC engagement.

Renewable Energy Expansion

Indias target of achieving 500 GW of renewable energy capacity by 2030 is fostering rapid growth in solar, wind, and green hydrogen projects. This shift toward clean energy presents vast opportunities for EPC players specialising in energy infrastructure.

Urbanisation and Smart Cities

Continued urban growth is fuelling demand for sustainable city infrastructure, including metro rail networks, smart water and waste systems, and commercial development. The Smart Cities initiative is a core driver of EPC activity in urban centres.

Public-Private Partnerships (PPP)

PPP models are increasingly being used to deliver infrastructure across sectors such as transport, healthcare, education, and utilities. This approach ensures a reliable pipeline of large- scale projects for EPC firms and encourages private sector participation.

Technological Integration

The adoption of digital twins, Building Information Modelling (BIM), and Al-driven project management tools is enhancing project efficiency and predictability. Although unevenly implemented, these technologies mark a transformative shift in EPC operations.

Sustainability and Green Construction

Heightened environmental awareness is leading to the use of sustainable construction materials and green building practices. EPC companies are aligning with green certification standards to stay competitive in a sustainability-driven market.

Outlook

The Indian EPC sector is undergoing a dynamic transformation, propelled by infrastructure megaprojects, energy transition, and technological

modernisation. While risks persist, the longterm outlook remains positive, with significant opportunities for firms that can adapt to evolving market demands and policy landscapes.

3. Company Overview

Ganesh Infraworld Limited is one of the fastest- growing infrastructure companies in Eastern India, with a specialised focus on supporting leading EPC giants. Our core mission is to deliver comprehensive, end-to-end erection services for complex infrastructure projects across sectors.

Driven by a dynamic team of young and dedicated professionals, we are committed to transforming the EPC service landscape by offering unmatched reliability, speed, and accessibility. We operate 24/7, 365 days a year, ensuring that our clients receive expert support right at their project sites—whenever and wherever they need it. At Ganesh Infraworld, we position ourselves as a trusted one-stop destination for all EPC service requirements, setting new benchmarks in quality, responsiveness, and customer satisfaction.

4. Financial Review

*The figures for FY 23-24 pertain only for 1.5 months since the company was incorporated on 13^th February, 2024. Hence, the figures are not comparable.

Details of significant changes in key financial ratios along with explanation

In compliance with the requirement of the Listing Regulations, the key financial ratios of the Company along with explanation for significant changes (i.e., for change of 25% or more as compared to the immediately previous financial year will be termed as ‘significant changes), has been provided hereunder:

Risk assessment and management - A proactive risk assessment framework is vital to identify and address potential threats across financial, operational, and project domains. These include project delays, cost overruns, supply chain disruptions, and regulatory non-compliance. By systematically evaluating these risks, EPC companies can implement timely mitigation strategies and maintain project integrity.

Project planning and monitoring - Strong internal controls support comprehensive project planning — including clear timelines, budget allocations, and defined milestones. Ongoing monitoring mechanisms help track performance against these benchmarks, enabling early detection and resolution of deviations, and ensuring project objectives are met efficiently.

Financial controls - Maintaining financial integrity is crucial in high-value EPC projects. Internal financial controls must ensure accurate transaction recording, strict budget adherence, and timely identification of variances. These safeguards reduce the risk of fraud, financial misstatements, and cost escalation.

Human resources and training - Effective internal controls extendtoworkforce management. Clearly defined roles, responsibilities, and procedures, paired with regular training, minimize errors and inefficiencies. A well-informed workforce is critical to maintaining quality standards and ensuring procedural compliance across project sites.

Audits and technology integration - EPC

companies conduct regular internal audits — both at the project and corporate levels — to validate procedural adherence and financial accuracy. Increasingly, the adoption of ERP systems and specialized software for procurement and financial management is enhancing control environments. These technologies streamline workflows, boost transparency, and provide realtime insights, strengthening governance across the project lifecycle.

8. Disclaimer

This report contains forward-looking statements that involve risks, uncertainties, and assumptions. These statements are based on the current expectations, estimates, and projections of the companys management as of the date of this report. Actual results may differ materially from those expressed or

c.

implied in these forward-looking statements due to various factors, including but not limited to changes in the economic environment, regulatory landscape, competitive pressures and unforeseen circumstances affecting the companys operations. The Company does not assume responsibility for any loss or damage that may result from the use of or reliance on the information contained in this report.