Garuda Construction and Engineering Ltd Management Discussions

A. Company Overview

Garuda Construction and Engineering Limited ("the Company") has established a diversified presence in the construction and engineering sector, with experience across residential, commercial, hospitality, infrastructure and EPC projects. Over the years, the Company has developed a strong project execution track record, supported by its capabilities in undertaking complex construction assignments and delivering projects across multiple segments and geographies.

The Company has successfully executed several landmark and key projects, including the Delhi Police Headquarters, a 17-storey twin-tower development with a complete glass facade and an approximate built-up area of 9 lakh square feet, along with various hospitality and residential projects such as Golden Chariot Vasai Hotel & Spa, Juvana Resort and Spa, Golden Chariot Boutique Hotel, Bollywood Sea Queen Beach Resort and Rivali Park, Borivali. These projects reflect the Companys experience in executing diverse construction assignments across hospitality, residential and infrastructure segments.

The Company has further strengthened its EPC portfolio through projects such as

Sangam Veda, Sangam Nero and Trinity Oasis, demonstrating its capabilities in undertaking turnkey and residential construction projects.

As part of its ongoing business expansion, the Company is presently executing a diversified portfolio comprising residential, commercial, township, convention infrastructure and other development projects. The Companys ongoing projects include

Gorakhpur Sports City Complex, Gorakhpur Integrated State-of-the-Art Convention Centre, Options World, Santacruz, Garuda Shatrunjay, Borivali, Powai Heights Chandivali and +ART, Lower Parel. The Companys ongoing portfolio reflects its strategy of expanding its presence across high-growth segments and strengthening its execution capabilities.

Among the key ongoing developments, the Gorakhpur Sports City Complex is a significant project being undertaken in collaboration with group companies. The project spans approximately 207 acres and comprises an integrated greenfield township of approximately 177 acres and a Sports City spread over approximately 30 acres, with planned residential, commercial, recreational, educational, healthcare and sports facilities. The development is proposed to be executed in phases over a period of approximately three years and six months.

The Company, along with its group companies, has also been selected as the successful bidder for the development of an Integrated State-of-the-Art Convention Centre and Support Amenities at Gorakhpur, Uttar Pradesh, under the Land Monetization Model. The project encompasses a world-class convention centre, spiritual library, elite club, U.P. Haat and supporting infrastructure, together with commercial and mixed-use development and a hotel component.

The Company is also executing significant residential and commercial projects in the Mumbai Metropolitan Region. Powai Heights Chandivali is being executed as an EPC project with an approximate built-up area of 1.51 million square feet and a delivery period of 60 months. Garuda Shatrunjay, Borivali comprises a substantial residential development with provisions for rehabilitation, while Options World, Santacruz represents the Companys presence in the commercial development segment.

With a diversified and growing project portfolio, the Company continues to focus on strengthening its EPC and construction capabilities, expanding its presence across residential, commercial, hospitality and infrastructure segments, and leveraging its execution experience to pursue larger and more complex projects. The Companys ongoing order book and diversified project mix provide a platform for sustained business growth and long-term value creation.

B. Industry structure and developments

Our Company operates in the construction and engineering industry, which remains a key contributor to Indias economic growth and infrastructure development. During FY 2025-26, the sector continued to witness healthy growth, supported by sustained government capital expenditure, infrastructure development, urbanisation and increasing private investment.

The Indian construction industry broadly comprises infrastructure, real estate and industrial construction. Continued investments in roads, railways, airports, urban infrastructure, housing and industrial projects are expected to provide significant growth opportunities for the sector.

As per the Economic Survey 2025-26, construction activity grew by 7.4% during H1 FY 2025-26, reflecting continued momentum in infrastructure and construction activity. Going forward, increasing urbanisation, infrastructure spending and demand for residential and commercial developments are expected to support the long-term growth of the Indian construction industry.

The Company, with its diversified project portfolio and execution capabilities across residential, commercial, hospitality, infrastructure and EPC segments, remains well positioned to benefit from the growth opportunities in the sector.

C. Opportunities and Risk along with its Mitigation.

The Indian construction sector offers significant opportunities arising from Government infrastructure spending, urbanisation, increasing demand for residential and commercial developments and growth in EPC projects. The Companys diversified presence across residential, commercial, hospitality, infrastructure and EPC segments provides opportunities for sustainable growth and expansion of its order book.

The key risks include project execution delays, fluctuations in material and labour costs, intense competition, regulatory changes and working capital requirements. The Company mitigates these risks through effective project planning and monitoring, prudent cost and financial management, diversified project portfolio, timely regulatory compliance and leveraging its execution experience and established track record.

D. Segment wise or product- wise performance

The Company operates in single business segment i.e. Construction Activity hence segment information has not been provided. Further the Company conducts its business in only one Geographical Segment, viz., India.

E. Outlook

The outlook for the Indian construction and engineering sector remains positive, supported by continued Government spending on infrastructure, urbanisation, increasing demand for residential and commercial projects and growth in EPC opportunities. The Company expects to leverage its diversified project portfolio, execution capabilities and industry experience to secure new projects, strengthen its order book and achieve sustainable growth. The Company remains focused on timely project execution, operational efficiency and prudent financial management to create long-term value for its stakeholders.

F. Risk and Concerns

The Company is exposed to risks relating to project execution delays, fluctuations in the cost of construction materials and labour, intense competition, regulatory changes and working capital requirements. Delays in approvals, availability of resources or changes in market conditions may also impact project timelines and profitability. The Company mitigates these risks through effective project planning and monitoring, cost control, prudent financial management, regulatory compliance and diversification of its project portfolio.

G. Internal Control Systems and their adequacy

The Companys internal controls are commensurate with the nature of its business, the size and complexity of its operations. These have been designed to provide reasonable assurance with regard to recording and providing reliable financial and operational information, complying with applicable statutes, safeguarding assets from unauthorized use or disposition, executing transactions with proper 64 of 192authorization and ensuring compliance with corporate policies. The system ensures appropriate information flow to facilitate effective monitoring. The internal audit system also ensures formation and implementation of corporate policies for financial, reporting, accounting and information security.

The Internal Financial Control of the company is analysed and audited for the compliances and accordingly the report under Section 143 of the Companies Act, 2013 is prepared and the report on internal control over financial reporting as issued by the statutory auditors of the Company for the year ended March 31, 2026.

The Companys internal auditors review business processes and controls. The audit committee reviews reports presented by the internal auditors on a periodic basis. The committee makes note of the audit observations and takes corrective actions, if necessary. It maintains a constant dialogue with the statutory and internal auditors to ensure effective operations of the internal control systems. The Audit Committee of the Board then discusses significant findings and corrective measures initiated. The Audit Committee of the Board of Directors periodically reviews the adequacy and effectiveness of internal control systems and suggests improvement for strengthening these systems.

H. Discussion on Financial Performance with respect to Operational Performance.

This has been explained in the Boards Report.

I. Material Developments in Human Resources/Industrial Relations front, including number of people employed

Your Company endeavours to create a work environment which is collaborative and learning and growth oriented to enable employees to perform at their full potential. Your Company believes that a motivated and empowered employee base is the key to our operations and business strategy, and has developed a large pool of skilled and experienced personnel. Your Company maintain a collaborative, inclusive, non-discriminative and safe work culture, and provide equal opportunities to all employees. It believes that such an enabling environment is essential for us to deliver value for our customers, shareholders and communities. The Company also takes various measures to keep its employees motivated and committed to their work by providing them a healthy work environment.

As on March 31, 2026, the Company had 97 employees including the managing director.

J. Details of Significant changes in key financial ratios, along with detailed explanations therefor, including:

Standalone Figures