Globe Civil Projects Ltd Management Discussions

1. BUSINESS AND COMPANY OVERVIEW

Globe Civil Projects Limited ("Globe Civil") is an integrated Engineering, Procurement, and Construction (EPC) company headquartered in New Delhi. With more than two decades of experience, the Company has built a strong reputation for delivering large and complex infrastructure projects across India. Our operational footprint spans multiple states - Uttar Pradesh, Haryana, Delhi, Punjab, Maharashtra, Andhra Pradesh, Karnataka, Gujarat, Chhattisgarh, Chandigarh, Rajasthan and Himachal Pradesh.

The Companys core focus areas include educational institutions, healthcare facilities, railway station buildings, housing, and commercial offices with recent expansion into sports infrastructure. Over the years, we have successfully completed more than 40 projects and are currently executing 12 projects. Globe Civil is registered as a Class-1 Super Contractor with CPWD, authorized to tender for projects up to 6,500 million, valid till November 2027.

As of March 31, 2026, our Order Book stood at 7,300 million, providing strong visibility of future revenues.

2. ECONOMIC OVERVIEW development during the year

Global Context

The global economy during FY 2025-26 operated in an environment marked by geopolitical tensions, trade policy uncertainty, and evolving monetary conditions across major economies. Global economic growth is projected to moderate to around 3.1% in 2026 - a notable moderation from the historical average of 3.7% recorded during 2000–2019.

A significant the volatility in energy prices, driven by disruptions to global supply chains and escalating tensions in key energy-producing regions. This volatility in energy costs increased input and transportation pressures across industries, including the construction sector.

Indian Economy

India remained one of the fastest-growing major economies during FY 2025–26 despite global economic uncertainties. Indias real GDP is estimated to have grown by 7.7% in FY 2025–26 as compared to 7.1% in FY 2024–25. The secondary sector, which encompasses construction and manufacturing, recorded a strong growth of 8.8% at constant prices.

Infrastructure development continued to be a key focus area of the Government during the year. Against the Union Budget 2025–26 capital expenditure outlay of 11.21 lakh crore, the actual capital expenditure incurred during the year was approximately 10.52 lakh crore. The Union

Budget 2026–27 further increased the capital expenditure outlay to 12.21 lakh crore.

3. INDUSTRY STRUCTURE AND DEVELOPMENTS

Indias civil construction sector continued to benefit from sustained government investment in infrastructure and public asset creation during FY 2025–26. The Governments continued focus on capital expenditure remained a key driver of demand for civil construction and EPC services. Urban infrastructure development remained an important area of focus during the year. Government schemes focused on urban water supply, sewerage infrastructure, public facilities, and urban redevelopment continued to drive construction activity across cities and towns.

Sector Opportunities for Globe Civil Projects Limited the

The continued emphasis on public infrastructure creation, institutional development, urban infrastructure, and government-funded construction projects presents a significant opportunity landscape for Globe Civil. The Companys experience in executing civil construction projects positions it to participate in opportunities arising from government departments, public sector undertakings, educational institutions, and other public infrastructure agencies.

Government Initiatives Driving Growth

The Union Budget 2025–26 provided a capital expenditure outlay of 11.21 lakh crore, with actual expenditure of approximately 10.52 lakh crore during the year. The Union Budget 2026–27 further increased the capital expenditure outlay to 12.21 lakh crore, reaffirming continued commitment to infrastructure-led growth.

4. OPPORTUNITIES, THREATS & SWOT ANALYSIS

Opportunities i. Sustained Government Infrastructure and Public Asset Creation

The Government of Indias continued emphasis on capital expenditure-led growth, infrastructure development, urban renewal, institutional facilities, and public asset creation is expected to sustain demand for civil construction services.

ii. Repeat Business and Established Client Relationships

The Company has developed relationships with various government departments, public sector undertakings, and institutional clients. A demonstrated track record of timely execution and quality delivery enhances the Companys competitive positioning in government procurement processes.

iii. Geographic Expansion and Market

Diversification

Building on its established presence in current operating regions, the Company sees opportunity to expand its geographic footprint as infrastructure deployment broadens across states. iv. Institutional and Healthcare Infrastructure Opportunities

Continued government investment in educational institutions, public facilities, healthcare infrastructure, and allied social infrastructure is expected to create opportunities within the Buildings and Civil Structures segment.

Threats i. Intense Competition in Government Tendering

The construction industry remains highly competitive, with government contracts generally awarded through transparent competitive bidding processes. Increasing participation by contractors across project categories may exert pressure on bid margins and impact profitability. ii. Volatility in Material and Labour Costs

Fluctuations in the prices of key construction materials such as steel, cement, fuel, and other inputs, together with rising labour costs, may affect project economics, particularly in fixed-price contracts. iii. Project Execution and Working Capital Risks

Delays arising from factors such as approvals, design changes, site-related constraints, or delayed payments may impact project execution schedules, cash profitability flows, and iv. Macroeconomic and Policy Uncertainties

The Companys operations may be influencedby broader economic conditions, including inflationary pressures, interest rate movements, geopolitical developments, and changes in government spending priorities.

5. BUSINESS OUTLOOK

Globe Civil has consistently delivered quality projects across diverse sectors. Our diversified portfolio reduces concentration risks and enhances revenue stability. As of March 31, 2026, our Order Book was approximately 7,300 million, comprising 18 ongoing projects.

Recently Completed Key Projects

Name of Project	Estimated Cost (in millions)
Construction of Academic Block, Hostel, Residential Tower, Directors Residence and External Development works at NIT Delhi Campus (TCIL)	3,300 million
Development and Modernization of Infrastructure at Naurangilal Inter College, Aligarh, UP — Sports Complex	553 million
Comprehensive External Development Work at NIT Delhi Campus — EPC-II basis (TCIL-II)	483 million

Key Ongoing Projects

Name of Project	Estimated Cost (in millions)
Construction of International Cricket Stadium at Lohat, Jhajjar, Haryana	2,221.97 million
Redevelopment of Housing Complex for MEA at KG Marg, New Delhi	1,988.89 million
Construction of Infrastructure facilities at Central University of Punjab, Bathinda	1,729.90 million
Income Tax Office Building at Bengaluru, Karnataka	1,430.00 million
Residential Building (3B+G+11) at IIT Delhi	988.48 million
Kotak School of Sustainability at IIT Kanpur Campus	617.80 million
Redevelopment of Delhi Public School, Sector-30, Noida	708.90 million
Redevelopment of Delhi Public School, Sector-19, Faridabad	560.00 million

Recently Awarded Projects

Name of Project	Estimated Cost (in millions)
Residential Building (3B+G+11) including allied services at IIT Delhi	988.48 million
Infrastructure facilities and other related works at Central University of Punjab, Bathinda	1,729.90 million
Kotak School of Sustainability at IIT Kanpur Campus	617.80 million
International Cricket Stadium at Lohat, Jhajjar, Haryana	2,221.97 million
Sports Complex & HT Ring Main at NIT Delhi Campus — EPC-II Basis	131.14 million
Indoor Sports Complex at GGSIPU, Sector 16C, Dwarka, New Delhi	23.74 million

6. QUALITY CONTROL

Quality management remains an integral part of the Companys project execution framework. The

Company holds certifications under:

• ISO 9001:2015 — Quality Management System

• ISO 14001:2015 — Environmental Management System

• ISO 45001:2018 — Occupational Health and Safety Management System Quality control measures are implemented throughout the project lifecycle. Construction materials are tested through accredited laboratories. Site activities are subject to regular monitoring and inspections to verify workmanship, adherence to approved drawings, and compliance with quality requirements. The Company maintains portionquality recordsof the and facilitates inspections by clients, consultants, and other authorised agencies.

7. RISKS AND CONCERNS

>i. Project Execution Risk

The successful execution of construction projects depends upon timely availability of resources, site readiness, approvals, design finalisation, and coordination among multiple stakeholders. Delays may impact project timelines, profitability, and cash flows.

ii. Input Cost Risk

Construction projects are exposed to fluctuations in the prices of key inputs such as steel, cement, fuel, and other construction materials. Significant increases in material or labour costs may affect project margins, particularly where cost escalations are not fully recoverable under contractual arrangements.

iii. Working Capital and Receivables Risk

The construction business requires substantial working capital for project execution. Delays in certification of work completed, release of payments, retention money, or approval of claims may impact liquidity and working capital cycles.

iv. Client Concentration Risk

A significant revenues is derived from government departments, public sector undertakings, and institutional clients. Any reduction in project awards or delays in project approvals may impact future business opportunities.

v. Competitive Tendering Risk

The industry is characterised by intense competition, with contracts awarded through competitive bidding processes. Increased competition may exert pressure on bid pricing and profit margins.

vi. Regulatory and Compliance Risk

The Company operates within a comprehensive regulatory framework comprising corporate, taxation, labour, environmental, and contract-related laws and regulations. Any non-compliance may result in penalties, litigation, or reputational impact.

vii. Macroeconomic and Policy Risk

Any significant expenditure or adverse macroeconomic developments may affect the availability and timing of project opportunities.

viii. Workforce Availability Risk

The availability and retention of skilled engineers, supervisors, technicians, and construction workers remain important for timely project execution.

8. STRATEGY OUTLOOK

Our strategy is built around six pillars that position Globe Civil for sustainable and accelerated growth:

1. Securing Government Infrastructure Projects

The Company continues to focus on government-led infrastructure opportunities, particularly in the construction of educational institutions, hospitals, and railway infrastructure. This focus, combined with diversification into specialised projects such as airports, bridges, and commercial facilities, positions the Company to benefit from long-term sector growth.

2. Expanding Geographical Footprint

Headquartered in New Delhi, the Company has successfully expanded operations across 12 states. Going forward, the Company intends to consolidate its presence in existing markets while exploring opportunities in Tamil Nadu and Andhra Pradesh.

3. Enhancing Pre-qualification and Bidding

Capacity

Continuous enhancement of bid capacity and technical credentials will allow the Company to access larger and more complex projects. Where required, project-specific joint ventures will be pursued to strengthen financial and technical qualifications.

4. Strengthening Execution and Quality

Timely project delivery and adherence to quality standards remain central to the Companys growth strategy. Investments in modern equipment, project management tools (including ERP platforms), and skilled manpower will continue to drive execution efficiency.

5. Pursuing Strategic Alliances

As of March 31, 2026, six joint ventures have been established to pursue opportunities in new markets and specialised projects. Such collaborations enhance technical capabilities, expand reach, and mitigate project risks.

6. Diversifying Revenue Base

Within EPC, the portfolio spans transport and logistics (roads, bridges, terminals), social and commercial infrastructure (education, healthcare, sports), and non-infrastructure projects (commercial offices, housing). Continued diversification will reduce concentration risks and broaden growth opportunities.

9. INTERNAL CONTROL TheSYSTEMS AND THEIR ADEQUACY

Globe Civil has robust internal control mechanisms including:

ERP-based financial and operational monitoring.

• Periodic internal audits reviewed by the Audit Committee business expansion.

• Annualbudgetingwithmonthlyperformance reviews.

• Strict compliance with applicable laws and regulations.

10. FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

Over the last fiscal year, the Company has demonstrated steady revenue growth with significant standalone and consolidated financial statements are presented below:

(All Amounts are in Million unless otherwise stated)

	Standalone		Consolidated
Particulars	2025-26	2024-25	2025-26	2024-25
Revenue from Operations	3,765.29	3,259.92	4,057.15	3,785.76
Other Income	32.24	28.43	33.24	29.92
Total Revenue	3,797.53	3,288.35	4,090.39	3,815.68
Profit Before Tax	312.34	332.37	313.19	332.44
Total Tax Expense	79.26	91.86	80.10	91.93
Net Profit After Tax	233.08	240.51	232.99	240.51
EPS (Basic & Diluted)	4.18	5.52	4.18	5.52

Standalone Performance Highlights

On a standalone basis, the Company recorded a healthy increase in revenue from operations to 3,765.29 million in FY 2025 26 from 3,259.92 million in FY 2024 25, reflecting a growth of approximately 15.5%. Net profit after tax stood at 233.08 million, with earnings per share (basic and diluted) at 4.18.

Consolidated Performance Highlights

On a consolidated basis, revenue from operations increased to 4,057.15 million in FY 2025 26 from 3,785.76 million in FY 2024 25. Net profit after tax stood at 232.99 million, with earnings per share (basic and diluted) at 4.18.

KEY OPERATING RATIOS

Ratio	FY 2025-26	FY 2024-25	Reason for Change (>25%)
Trade Receivable Turnover	2.17	2.73	EPC Projects require high inventory levels for better execution of project
Inventory Turnover (times)	0.44	0.72
Interest Coverage Ratio (times)	2.53	2.72
Operating Profit Margin (%)	13.73	16.11
Net Profit Margin (%)	6.19	7.38
Return on Net Worth (%)	13.54	22.63	Infusion of Capital through IPO
Current Ratio (times)	1.70	1.32	Deployment of IPO proceeds in Working capital
Debt Equity Ratio (times)	0.87	1.61

11. HUMAN RESOURCES / INDUSTRIAL RELATIONS

The Company recognises its human resources as a critical enabler of project execution and organisational growth. As on 31st March 2026, the Company employed 159 permanent employees across its operations. In addition, the Company engaged 95 contract workers across its project sites, bringing the total workforce to 254.

The Company continued to invest in safety awareness and skill development of its workforce through regular training programmes, safety drills, and quality awareness initiatives during the year. Statutory benefits including Employees

Provident Fund and Employees State Insurance coverage were extended to eligible employees. Industrial relations during FY 2025–26 remained cordial and stable.

12. SEGMENT-WISE PERFORMANCE

Since the Company operates in the Construction/

EPC business, there is no specific segment or product-wise breakup. The Companys entire revenue is derived from civil construction and EPC activities across various project categories.

13. STATUTORY COMPLIANCES

Globe Civil Projects Limited is compliant with applicable corporate, tax, labor, and regulatory requirements. Internal audits and management reviews ensure adherence to changing regulations. Compliance systems are periodically updated in line with industry standards.

14. CAUTION STATEMENT

This Report contains forward-looking statements, based on certain assumptions and expectations of the Company. Actual performance may differ materially due to risks and uncertainties including changes in economic conditions, government policies, commodity prices, competition, and regulatory shifts. The Company assumes no responsibility for any changes in these statements arising from future events or developments.