GVK Power & Infrastructure Ltd Management Discussions

The Indian economy continued to demonstrate strong resilience during FY 2025-26, supported by robust domestic demand, improving investment activity, strengthening manufacturing, and sustained momentum in the services sector. As per the Economic Survey 2025-26, Indias real GDP growth for FY 2025-26 is estimated at 7.4%, with GVA growth estimated at 7.3%, reaffirming Indias position among the fastest-growing major economies. Domestic demand continued to remain the principal driver of growth, supported by strengthening capital formation, while manufacturing and services recorded improved performance.

On the supply side, manufacturing is estimated to grow by 7.0% in FY 2025-26, compared with 4.5% in FY 2024-25, while services are estimated to grow by 9.1%. Construction is expected to grow by 7.0%, while agriculture, livestock, forestry and fishing is estimated to grow by 3.1%. Financial, real estate and professional services are expected to expand by 9.9%, reflecting continued strength in the services economy.

On the demand side, private final consumption expenditure is estimated to grow by 7.0%, while gross fixed capital formation is estimated to expand by 7.8%, indicating continued support from domestic consumption and investment. Government final consumption expenditure is estimated to grow by 5.2%, while exports are expected to increase by 6.4%.

The outlook for FY 2026-27 remains cautiously positive. The Economic Survey 2025-26 has projected Indias real GDP growth in the range of 6.8% to 7.2% for FY 2026-27, supported by resilient domestic demand, investment, infrastructure development, manufacturing expansion and the continued strength of the services sector.

Indias power sector continued to witness strong growth during FY 2025-26, supported by rising electricity demand, capacity additions and strengthening transmission infrastructure. Peak power demand reached 242.49 GW, while the energy shortage remained at a low 0.03%, reflecting improved power availability and grid reliability. Indias total installed generation capacity crossed 520 GW, with non-fossil fuel sources accounting for more than 52% of the installed capacity, reflecting the countrys accelerating transition towards cleaner sources of energy.

Renewable energy capacity additions remained strong during the year, supported by continued investments in solar, wind, hydro and energy storage. At the same time, conventional thermal generation continues to play an important role in meeting the countrys round-the-clock power requirements. The outlook for the sector remains positive, driven by economic growth, industrialisation, urbanisation and increasing electricity consumption. Continued investments in generation, transmission, storage and grid modernisation are expected to provide sustained opportunities for the Indian power sector in the medium to long term.

Indias National Highway infrastructure continued to expand during FY 2025-26, supported by sustained investment and accelerated project execution. NHAI constructed 5,313 km of National Highways during the year, achieving an average construction pace of approximately 14.6 km per day, with capital expenditure of around 02.44 lakh crore. Under the Bharatmala Pariyojana, 26,425 km of projects had been awarded, of which 21,597 km had been completed as of November 2025.

Asset monetisation remained an important funding mechanism, with NHAI realising 028,307 crore during FY 2025-26 through InvIT and TOT models. Digital tolling continued to improve highway efficiency, with over Rs. 98% of National Highway toll collections undertaken through FASTag, while initiatives towards barrier-free tolling through Multi-Lane Free Flow technology progressed during the year.

The 330 MW Alaknanda Hydro Power Company Limited recorded revenue of Rs. 954.62 Crore for the year ended March 31, 2026, as against Rs. 869.12 Crore in the previous year. Your Company now has only one revenue generating asset during the year 2025-26 i.e. 330 MW Alaknanda Hydro Power Company Limited.

The 3330 MW Shrinagar Hydro Electric Project achieved an Annual Plant Availability Factor of 55.96% and a Plant Load Factor of 50.36% during FY 2025-26. During the year under review, AHPCL recorded total income of Rs. 954.62 Crore and profit after tax of Rs. 284.82 Crore, as compared to total income of Rs. 869.12 Crore and profit after tax of Rs. 81.28 Crore in the previous year.

The energy crisis is the concern that the worlds demands on the limited natural resources that are used to power industrial society are diminishing as the demand rises. These natural resources are in limited supply. While they do occur naturally, it can take hundreds of thousands of years to replenish the stores. The world faces two energy problems: most of our energy production still produces greenhouse gas emissions, and hundreds of millions lack access to energy entirely.

Among the major categories of risk considered are those relating to industrial operations, to atmospheric pollution, to shortage of water supply, and to change in climate. For each of these, we have considered the risks posed by energy systems based on fossil fuels, nuclear fuels, and solar energy. Some of the issues leading to the power deficit situation in the country include (i) shortage of fuel, (ii) high AT&C losses, (iii) a differential tariff structure, and (iv) delays in tariff revisions.

One of the most common transportation risks in distribution logistics is delays and disruptions. These can occur due to various factors such as traffic congestion, weather conditions, accidents, strikes, customs clearance, regulatory changes, or unexpected events. Few other instances of transportation risks are labor shortage delays, loss or theft of cargo, incorrect documentation, cargo damage and lack of proper insurance. To reduce these risks, businesses implement transportation risk management strategies and procedures.

The total income of the company, which comprises of income from operations, of power plant, Fees for technical services and other income is Nil

The Companys total expenditure, comprising of Cost of Operation, Employee Benefit Expenses and other administrative expenses, increased to Rs.104,197 Lakhs (Including impairment of Deemed investment of Rs. 84,120 lakhs,advances written off to the extent of Rs,19,690 Lakhs and bad debts written off to the extent of Rs. 62 Lakhs) for the year ended March 31,2026 from Rs.474 lakhs for the year ended March 31,2025.

Interest expenses stood at Rs.Nil (previous year figure was Rs. Nil)

Profit before tax for the year stood at Rs.(103,893) lakhs for the current year as compared to profit of Rs. 37 lakhs in the previous year.

Profit after tax is Rs. (103,931) lakhs for the year ended March 31,2026 as compared to profit of Rs. (32) lakhs in the previous year. Earnings Per Share (EPS)

The earnings per share at a standalone level for the current year stands at Rs. (6.58) as compared to Rs. (0.00) per equity share of Re.1/- each in the previous year.

under Section 133 of the Companies Act, 2013 and Companies (Indian Accounting Standards) Rules, 2015, as amended. These companies operate broadly in a) Power b) Road c) Airports and d) Other sectors.