GHV Infra Projects Ltd Management Discussions

(MDA) REPORT FOR THE ANNUAL REPORT FY 2025-26

Economic Overview

1. The fiscal year 2025-26 (FY26) was marked by resilient global growth amid persistent geopolitical tensions, trade uncertainties, and uneven recovery across regions. Global GDP growth moderated to around 3.0 in 2025, reflecting the impact of elevated policy uncertainties and supply- side pressures, while early indicators for 2026 pointed to continued moderation.

Against this backdrop, the Indian economy demonstrated resilience and continued to record strong growth and emerged as the fastest-growing major economy. Real GDP expanded by 7.6% in FY 2025-26, accelerating from 7.1% in the previous year. Growth was broad-based, driven by robust performance in manufacturing (which recorded double-digit expansion), a buoyant services sector (particularly trade, transport, financial services, and real estate), and sustained investment activity. Private consumption strengthened, and Gross Fixed Capital Formation continued to grow at a healthy pace, supported by sustained investment activity.

Indias infrastructure sector remained a key pillar of this growth. Sustained high levels of government capital expenditure-budgeted at approximately Rs.11.2 lakh crore for FY 2025-26 under the National Infrastructure Pipeline, PM Gati Shakti, and related programmes continued to drive activity in roads, railways, urban development, energy, and industrial corridors. Construction and core infrastructure-related industries maintained healthy momentum, creating a favorable operating environment for EPC players.

Emerging markets such as India and the UAE continued to outperform, supported by domestic demand, infrastructure investments, and diversification into manufacturing, logistics, and energy-transition projects. This combination of strong domestic fundamentals and selective international opportunities provided a constructive backdrop for companies operating in the infrastructure and construction space during FY 2025-26.

2. Industry Structure and Developments

Indias infrastructure and construction sector maintained strong momentum during FY 2025-26, supported by sustained public capital expenditure, continued investment in highways, railways, urban infrastructure and renewable energy, and increasing demand for industrial and commercial facilities. Digitalization of tendering and project management processes, greater emphasis on sustainable and green construction practices, and increasing focus on timely project execution continued to influence the competitive landscape. The operating environment remained favorable for EPC players with strong technical capabilities, established track records, financial capacity and the ability to access opportunities across domestic and international markets.

GHV Infra Projects Limited (formerly Sindu Valley Technologies Limited) continued to build on the strategic transformation initiated during FY 2024-25 following the acquisition of shares in November 2024 and the subsequent change of the Companys name in December 2024. During FY 2025-26, the Company continued to strengthen its position as a diversified EPC contractor, with capabilities across six core verticals and an expanding international presence. The Company remained focused on leveraging its execution capabilities, technical expertise and diversified business portfolio to participate in opportunities arising from continued infrastructure and construction activity in India and selected international markets.

3. Key Corporate and Operational Activities

FY2025-26wasayearofdecisivetransformation andscale- up for GHV Infra Projects Ltd. Building on the foundation laid in the previous year, the Company expanded its order book substantially, strengthened its presence across core infrastructure and building verticals, established a meaningful international footprint, and delivered strong financial growth. In parallel, the Company commenced preparatory and operational activities in the Energy and Data Center sectors, actively positioning itself to secure orders in these high-potential areas.

Business Segments The Company now operates / is actively developing capabilities across the following six segments:

• Infrastructure: Highways & Expressways, Railways, Bridges & Viaducts, Runway & Taxiways, Dams & Irrigation Works, Pipeline Works.

• Building: Building Construction, Hotels & Hospitality, Industrial Infrastructure, Airport Infrastructure, Commercial Places.

• Coastal Infrastructure: Jetties & Berths, Ro-Ro & Cruise Infrastructure, Marine Connectivity (Road & Rail).

• Energy: Solar Power, Thermal Power (the Company has commenced preparatory work, capability building, and active tendering / opportunity hunting in this vertical; no orders secured as of 31 March 2026).

• Industrial: Steel Plants, Refineries, LSTK Process Units.

• Data Center: Civil works, MEP and all related compliances (the Company has initiated operational readiness, technical preparations, and tender participation in this emerging segment; no orders secured as of 31 March 2026).

While the current executed and order-book portfolio is concentrated in Infrastructure, Building, Coastal Infrastructure, and Industrial segments, the proactive entry into Energy and Data Center verticals expands the Companys addressable market and reduces longer-term concentration risk.

International Expansion During the year, the Company significantly strengthened its international footprint with projects in the United Arab Emirates, the United States, and Africa. The landmark UAE EPC contract for development of industrial and commercial facilities at Ras Al Khaimah, along with subsequent awards in the USA and Africa (including Cameroon), positioned GHV as a globally competitive EPC player. International orders now form a meaningful and growing portion of the overall order book and are largely structured on a cost-plus fixed-margin basis, providing better visibility on margins and protection against price variations.

Order Book The order book demonstrated exceptional growth and quality. As on 31 March 2026, the order book stood at over Rs.9,100 crore. By 30 June 2026 it had expanded to more than Rs.19,000 crore, reflecting a well- balanced mix of approximately 46% domestic and 54% international orders. This balanced portfolio provides strong multi-year revenue visibility while mitigating geographic concentration risk. The order book currently comprises projects primarily from the Infrastructure, Building, Coastal, and Industrial segments.

Recognition The Companys progress was recognised by the industry with the "Emerging Contractor of the Year” Award at the RAHSTA Awards 2026, presented by ASAPP + Media. This recognition underscores GHVs rapid rise and commitment to quality, innovation, and execution excellence.

Corporate Actions & Governance The Company continued to strengthen its corporate structure, including operations through subsidiaries (including the

UAE subsidiary), enhanced digital project-management systems, and robust governance practices in line with SEBI and BSE requirements. Regular compliance filings, internal audits, and focus on sustainability and ESG principles remained integral to operations.

Detailed Financial Performance (Standalone, Rs. in Cr):

Particulars	FY 202526	FY 202425	FY 202324
Revenue from Operations	605.53	184.88	-
Total Expense	548.25	161.55	(0.43)
Profit Before Tax	57.28	23.33	(0.43)
Tax Expense	15.03	6.18	-
Net Profit After Tax	42.26	17.15	(0.43)
EPS (Basic)	05.86	35.47	(6.21)

Key Highlights

• Standalone revenue from operations grew 328% YoY to Rs.605.53 crore.

• Profit After Tax more than doubled (up 246%) to Rs.42.26 crore.

• Operating margins improved, reflecting better project mix, scale efficiencies, and contribution from higher- margin international and specialised works.

• Q4 FY26 revenue stood at Rs.213.60 crore with PAT of Rs.19.84 crore, demonstrating continued sequential momentum.

Balance Sheet & Cash Flow Highlights (Standalone) Total assets and net worth expanded significantly in line with business scale-up. Working-capital intensity remained elevated due to rapid order execution and mobilisation requirements, resulting in continued focus on structured financing, milestone-linked collections, and optimisation of debtor days. Finance costs rose with higher working- capital utilisation but remained well-managed relative to earnings growth. Investing and financing cash flows supported project mobilisation and balance-sheet strengthening.

4. Opportunities and Threats

Opportunities:

a. Sustained government focus on transport (roads, railways, airports), energy transition (solar and related infrastructure), urban development, and industrial corridors continues to generate large bid pipelines for mid-to-large EPC players.

b. Diversification into Data Centers, Coastal Infrastructure, and specialised Industrial (steel, refinery, LSTK) projects opens higher-value, longer- duration opportunities.

c. International expansion in UAE, USA, and Africa provides geographic diversification, access to cost- plus structures, and brand-building on a global stage.

d. Growing order book of over Rs.19,000 crore (as of June 2026) with balanced domestic-international mix offers multi-year revenue visibility and reduced concentration risk.

Threats:

• Intense competition from established large EPC players in both domestic and international markets.

• Volatility in raw-material prices (steel, cement, aggregates) and skilled-labour availability.

• Working-capital and mobilisation risks inherent in large-scale, multi-year contracts.

• Geopolitical, regulatory, and currency risks associated with international projects.

• Potential delays in project awards or clearances due to policy or environmental factors.

5. Segment-Wise or Product-Wise Performance

In FY 2025-26, the Companys revenue of Rs.605.53 crore was derived primarily from the Infrastructure, Building, Coastal Infrastructure and Industrial verticals. Operations and capability-building activities also commenced in the Energy and Data Center verticals, though no orders had been secured in these two areas as of 31 March 2026.

The order book remained well-balanced, with approximately 46% domestic and 54% international contribution as of 30 June 2026, supporting sustainable growth and limiting concentration risk across the active verticals.

6. Outlook

FY 2026-27 and beyond present significant growth potential. With an order book exceeding Rs.19,000 crore (as of 30 June 2026), a well-diversified segmental and geographic mix, and demonstrated execution capability, the Company is positioned for continued strong revenue growth and margin expansion. Management remains focused on:

• Accelerating project execution and converting the large order book into revenue.

• Improving working-capital efficiency and reducing debtor days through structured financing and milestone discipline.

• Strengthening digital project-management systems, engineering capabilities, and sustainability practices.

• Selectively expanding the international portfolio while maintaining disciplined risk management.

• Building organisational capacity in people, processes, and technology to support the next phase of scale.

Indias infrastructure investment cycle and global demand for reliable EPC partners continue to create a favourable operating environment. GHV believes it is uniquely positioned to capitalise on both domestic and international opportunities.

7. Risks and Concerns

• Credit / Receivable Risk: Elevated receivables inherent in large EPC projects are monitored through regular performance metrics, milestone-linked billing, and structured financing arrangements.

• Market Risk: Limited forex exposure on international projects; cost-plus structures on key overseas contracts provide additional protection.

• Operational Risk: Project delays, supply-chain disruptions, and labour availability are mitigated through insurance, robust subcontracting frameworks, training, and digital monitoring.

• Regulatory & Compliance Risk: Continuous adherence to SEBI, MCA, & RBI environmental, and local statutory requirements are ensured through internal audits and dedicated compliance functions.

• Execution & Working-Capital Risk: Large order book requires careful mobilization planning and liquidity management; the Company continues to strengthen banking relationships and internal controls.

8. Internal Control Systems and Their Adequacy

The Company has put in place a structured internal control framework commensurate with the nature, scale and complexity of its operations. The framework is designed to safeguard the Companys assets, maintain the accuracy and reliability of financial and operational information, promote operational efficiency and ensure compliance with applicable laws and regulations. The internal audit function conducts periodic reviews of key financial, operational and compliance processes, including project-level controls and information technology systems, and submits its observations and recommendations to the Audit Committee for review and appropriate action. The Company periodically assesses the effectiveness of its internal controls and undertakes necessary improvements to address emerging business, operational and compliance requirements.

9. Discussion on Financial Performance with Respect to Operational Performance

The Companys standalone financial performance during FY 2025-26 reflects a substantial increase in the scale of operations, accompanied by a significant improvement in profitability. The key financial indicators for the year, together with comparative figures for the preceding two financial years, are summarized below:

(Rs. Cr)

Particulars	FY 2025-26	FY 2024-25	FY 2023-24	Variance (FY26 vs FY25)
Revenue from Operations	605.53	184.88	0.00	+328%
EBITDA (approx.)	91.23	24.93	(0.43)	Significant growth
Profit After Tax	42.26	17.15	(0.43)	+246%
Total Assets	58.25	221.43	0.01	Substantial
Net Worth	123.51	42.57	(0.80)	Strong accretion

Operational performance improved with higher absolute margins and better absorption of fixed costs. While operating cash flow continued to reflect the working-capital investment required for rapid growth, the quality of the order book and improving project mix position the Company for stronger cash conversion in the coming years. Finance costs increased with scale but remained well-covered by operating earnings.

10. Material Developments in Human Resources / Industrial Relations

Employees remain the cornerstone of GHVs success. The workforce continued to expand in line with business growth, with strong emphasis on attracting and retaining talent with domain expertise in EPC execution, project management, engineering, and international operations. Industrial relations remained harmonious throughout the year.

Employee engagement initiatives, and a culture of transparency and collaboration were further strengthened. Regular team events, celebrations, and open communication channels fostered a sense of belonging and high motivation across locations.

11. Key Financial Ratios:

Sr. No. Ratio	Numerator	Denominator	Unit of Ratio	Financial Year 2025-26	Financial Year 2024-25	% Change	Reason for Variance > (? 25%)
i Current Ratio	Current Asset	Current Liabilities	Times	1.41	1.10	27.40%	Significant Increase in Current assets and current liabilities in the current year due to commercial operations commencement
ii Debt Equity Ratio	Total Debt:- long term borrowings + short term borrowings + current maturities of long term borrowings	Shareholders Equity:- Equity attributable to Equity Holders of the Company	Times	1.55	0.73	113.53%	The Change in ratio compared to previous year is due to increase in Loan and decrease in Net Worth.
iii Debt Service Coverage Ratio	Earning available for debt services:- Net profit before tax + Non cash operating expenses + Interest Expense	Debt Service:- Interest Payments + Principal Repayments during the year	Times	4.04	15.78	(74.39)%	Substantial increase in debt servicing obligations, including higher interest and principal repayments, coupled with relatively lower earnings available for debt service.
iv Return on Equity Ratio	Net Profits after taxes	Average Shareholders Equity:- Equity attributable to Equity Holders of the Company (Simple Average)	%	50.88%	82.09%	(38.02)%	The Change in ratio compared to previous year is due to split of share during the year and also increase in profit.
v Inventory Turnover Ratio	Cost of Goods Sold:- Cost of Material Consumed + Changes in Inventory + Manufacturing Expenses	Closing Inventory	Times	9.65	11.57	(16.60)%
vi Trade Receivable Turnover ratio	Net Sales:- Revenue from operations	Closing Trade Receivables	Times	5.21	1.38	276.45%	The Change in ratio compared to previous year is due to increase in sales and decrease in Trade receivables.
vii Trade Payable Turnover Ratio	Cost of materials consumed + Construction expenses	Closing Trade Payables	Times	1.22	1.29	(5.17)%
viii Net Capital Turnover Ratio	Net Sales:- Revenue from operations	Working Capital: - Current Assets - Current Liabilities	Times	5.14	12.23	(58.01)%	The Change in ratio compared to previous year is due to increase in Turnover.
ix Net Profit Ratio	Net Profits after taxes	Net Sales: Revenue from operations	%	6.97%	9.27%	(24.80)%	-
x Return on Capital Employed	Earning before interest & taxes (EBIT) : Profit/(loss) before tax + Interest Expense	Capital employed: - Shareholders Equity + Total Debt - Intangible Assets - Deferred Tax Assets + Deferred Tax Liability	%	46.15%	67.69%	(31.82)%	The Change in ratio compared to previous year is due to decrease in profit as compared to capital employed.
xi Return on Investment	Gain / (loss) on Sale of Investment + Dividend and Interest Income on Investments	Average Investment (Simple Average)	%	NA	NA	NA

12. Cautionary Statement

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations, or predictions may be "forward-looking statements” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Company operates, changes in Government regulations, tax laws, other statutes, and other incidental factors.

		For and on behalf of the Board
	Ajay Hans	Reby Thomas Elsan
	Managing Director	Whole Time Director
	(DIN:00391261)	(DIN:06505474)
Date: 10/08/2026
Place: Mumbai