Indian Hume Pipe Company Ltd Management Discussions

1. INDUSTRY STRUCTURE & DEVELOPMENT:

We all know that water is a prime natural resource and a basic human need for survival and existence. Indeed water is fundamental to our life. In view of the vital importance of water for human, animal & plant life, for maintaining ecological balance and for economic and developmental activities of all kinds and considering its increasing scarcity, the planning and management of this resource and its optimal economical and equitable use has become a matter of national importance.

The Company has been in the business of manufacturing, laying and jointing of pipelines of various pipe materials such as RCC pipes, Steel pipes, Prestressed Concrete pipes, Penstock pipes, Bar Wrapped Steel Cylinder pipes (BWSC), Prestressed Concrete Cylinder pipes (PCCP) etc., which provide infrastructure facility and development of drinking water supply projects, irrigation projects, Sanitation and Sewerage schemes. For over five decades as a part of nation building, the Company has also been undertaking infrastructure development programmes by way of executing on turnkey basis the combined water supply projects i.e. undertaking the complete job of water supply from source to distribution centers which apart from manufacturing, laying and jointing of pipelines included construction of intake wells, water sumps, water treatment plants, water pumping stations, installation of pumping machineries, electro-mechanical works, branch mains, ground level reservoirs, elevated reservoirs, leading to executions of complete systems for water supply to various towns and villages of India.

The Company continues to monetize its land parcels and advance real estate development initiatives across the key locations of the Company. Development on the lands at Hadapsar and Vadgaon in Pune is progressing rapidly, with strong pace driving the projects forward. The Slum Rehabilitation Authority (SRA) project at Wadala, Mumbai, as well as the Companys land at Badarpur, New Delhi, are currently at the initial stages of obtaining development-related approvals from the relevant authorities. These projects reflect the Companys long-term strategy of unlocking value from its land holdings while navigating regulatory frameworks and market dynamics.

2. OPPORTUNITIES AND THREATS:

Water is one of the most crucial elements in our national developmental planning for the 21 st Century. The proper management of our limited water resources will be essential to ensure food security for countrys growing population and to eliminate poverty. (Water Policy and Action Plan for India 2020: An Alternative).

As per Indian Census 2011, the population of India was 121 crores. A scarce natural resource, water is fundamental to life, livelihood, food security and sustainable development. India has more than 18% of the worlds population, but has only 4% of worlds renewable water resources and 2.4% of worlds land area. There are further limits on utilizable quantities of water owing to uneven distribution over time and space. In addition, there are challenges of frequent floods and droughts in one or the other part of the country. With a growing population and rising needs of a fast-developing nation as well as the given indications of the impact of climate change, availability of utilizable water will be under further strain in future with the possibility of deepening water conflicts among different user groups. The main emphasis of the National Water Policy, 2012 is to treat water as economic good. Low consciousness about the scarcity of water and its life sustaining and economic value results in its management, wastage, and inefficient use, as also pollution

and reduction of flows below minimum ecological needs. In addition, there are inequities in distribution and lack of a unified perspective in planning, management and use of water resources (Source:- National Water Policy 2012). As it is with the growing population demanding more food, more products and higher standards of living, the shortage of drinking water can only get worse. Thus, there is a vast scope for improvement in infrastructural developmental activities in water supply, drainage and sewerage schemes in sanitation Swachh Bharat segments leading to good scope for the Companys manufacturing and contracting activities in this field.

The governments focus on interlinking rivers is expected to significantly expand lift irrigation schemes across the country. These projects will require extensive water conveyance infrastructure, thereby creating strong demand for pipes. As a result, our company is well-positioned to benefit from this policy initiative through increased production and sales of irrigation pipes. Growth of population and the expansion of economic activities inevitably lead to increasing demands for water for diverse purposes i.e. domestic, industrial, agricultural, hydro-power, thermal power, navigation, recreation etc. Domestic and Industrial water needs have been largely concentrated in or around major cities, however the demand in rural areas is expected to increase sharply with the development programmes of State Governments to improve the economic conditions of the rural mass. Demand for water for hydro and thermal power generation and for other industrial uses is also increasing substantially. As a result, water which is already scarce will become even scarcer in future. This underscores the need for the utmost efficiency in water utilisation and its distribution. Through awareness of efficient water supply system and water quality, we can keep our water supply adequate and provide clean & healthy water for our children. It is their fundamental rights. Hence there is a good scope for many water supply projects coming up in near future and this auger well for the Company.

Increased competition from medium/large scale construction entities and availability of substitutes such as alternative pipe materials like Ductile Iron pipes, spirally welded steel pipes and H.D.P E. pipes are perceived as one of the threat/ competitions to the Company. Another cause is prices of key raw materials namely steel, steel wires, HT wires and cement, which were on uptrend during the year under review.

The ongoing geopolitical conflict in West Asia, particularly between the United States and Iran, has intensified uncertainty in global energy markets, resulting in rising crude oil prices. This situation poses significant risks of high inflation due to increased costs of oil, bought- out items, and transportation, which in turn impact input expenses and overall project costs. There is substantial increase in the prices of steel, cement and other related products.

3. SEGMENT-WISE ACTIVITY:

(i) Construction:

The Company is considered a pioneer in the field of water supply industry; it is in this line of business for over five decades. The Companys presence is there in almost all water supply related activities, viz. Urban & Rural Water Supply, Large diameter Irrigation pipelines, Head Works including pumping machinery, Treatment Plants, Overhead Tanks and other allied Civil Construction. The Company manufactures and sells different types of pressure and non-pressure concrete pipes for its own projects as well as for supply to various contractors. The Company also manufactures and supplies Concrete Railway sleepers to Indian Railways.

MANAGEMENT DISCUSSION AND ANALYSIS

(ii) Land Development:

The Company is monetizing its land parcels. It is a new segment activity which was started in the financial year 2023-24 which is in accordance with applicable Accounting Standards. The development of real estate projects on the Companys land situated at Hadapsar, Pune was started during the year 2024 and Vadgaon, Pune started during the year 2025 under review.

The segment wise report is given below:

(I) A. WATER SUPPLY AND SEWERAGE PROJECTS:

(i) Some prominent Water Supply Projects and Drainage Schemes substantially completed by the Company valued more than Rs.5,000 Lakhs each during the year are:-

1. Public Health Engineering Department, Jaipur, Region-II, for Bisalpur- Prithviraj Nagar Water Supply Project Phase-I, Stage-I Consisting of 700 to 2300 mm dia Ms pipes for 44.34 kms., 100 to 600 mm dia DI pipes for 125.22 kms. and 110 to 200 mm dia HDPE Pipes 811.97 kms. including Clear Water Reservoir : 10 Nos (2000 KL to 36000 KL) Over Head Service Reservoir : 19 Nos (1000 Kl to 2500 KL) Pumping Station with Chlorination Room: 9 nos PLC & SCADA System of the value of Rs.29,550.63 Lakhs in Rajasthan.

2. Municipal Corporation Madurai, for dedicated Water Supply Scheme for Madurai Corporation from Mullai Periyar River at Lower Camp Construction of Distribution Network System (DI & HDPE), House Service connections, and Instrumentation Package-IV consisting of 250 to 500 mm dia DI K7 pipes - 74.59 Km, 110 mm to 200 mm dia HDPE (PN-6) Pipes - 907.68 Km, 20 mm to 32 mm House service connection- 96,933 Nos works order value of Rs.25,759.79 Lakhs in Tamilnadu.

3. Madhya Pradesh Jal Nigam Maryadit for Indwar-I Multivillage Rural Water Supply Scheme in Umariya and Katni District consisting of 100 to 800 mm dia DI (K-7) Pipes for 257.23 Km, 600 mm dia DI (K9) pipes for 51.24 Km and 90 to 200 mm dia HDPE (PN-6) Pipes for 1674.34 km including Intake well 35.90 MLD, Water Treatment Plant 29.10 MLD, Overhead Tank 66 Nos. (100 KL to 500 KL), MBR 1 Nos (1200 KL) and 33,280 Nos. House Service Connection of the value of Rs.23,243 Lakhs in Madhya Pradesh.

4. Madhya Pradesh Urban Development Co. Ltd., Asian Development Bank (ADB) funded, Bhedaghat Water Supply Scheme consisting of 150 to 200 mm dia DI K7 pipes for 10.95 KM, 100 to 600 mm dia DI K9 pipes for 148.06 kM and 110 to 315 mm dia HDPE Pipes for 328.44 KM including Intake Well 27.93 MLD, water treatment plant 31 MLD, overhead tanks 13 Nos. (120 KL to 920 KL) and 32,066 Nos. House Service Connections of the value of Rs.21,802.53 Lakhs in Madhya Pradesh.

MANAGEMENT DISCUSSION AND ANALYSIS

5. Asolamendha Project Renovation Division No.1, Mul, Dist. Nagpur, for creation of Irrigation Potential 9219 Ha. by providing irrigation facility to CCA 7348 Ha.by Construction of Earth Work, Structure and Lining in Km. 1 to Km. 3 and Pipe Distribution Network in Km. 3 to Km. 16.32,Dewada Sub Branch and Network in Km. 1 to 16.32 of Gowardhan Branch on Asolamendha Project consisting of 63 to 315 mm dia - HDPE Pipes - 494.66 Kms, 350 to 600 mm dia HDPE Pipes - 33.55 Kms, 700 to 1700 mm dia PCCP Pipes- 23.96 Kms, 2000 mm dia-1.70 Kms & 2300 mm dia - 3.93 Kms M.S. Pipes of the value of Rs.15,262.68 Lakhs in Maharashtra.

6. Madhya Pradesh Jal Nigam Maryadit for Bankpura Multivillage Rural Water Supply Scheme in Rajgarh District consisting of 100 mm to 450 mm dia DI (K-7) Pipes for 189.30 Km, 100 mm to 450 mm dia DI (K9) pipes for 32.04 Km and 90 mm to 225 mm dia 446.25 Km for HDPE (Pn- 6) Pipes including Intake well 17.98 MLD, Water Treatment Plant 14.75 MLD, Overhead Reservoirs 58 Nos. and House service connection 22,680 Nos. Clear Water Pumping Mains and allied civil works of the value of Rs.14,163.00 Lakhs in Madhya Pradesh.

7. Madhya Pradesh Jal Nigam Maryadit for Kandaila Multi village Rural Water Supply Scheme in Rewa district consisting of 100 to 500 mm dia DI (K-7) Pipes for 120.02 Km, 450 to 600 mm dia DI (K9) pipes for 8.88 Km and 90 to 280 mm dia HDPE (PN-6) Pipes for 868.05 km including Intake well 25.4 MLD, Water Treatment Plant 20.6 MLD, Overhead Reservoirs, House service connection 19,633 Nos. Clear Water Pumping Mains and allied civil works of the value of Rs.13,590.00 Lakhs in Madhya Pradesh.

Cascade Aerator at Water Treatment Plant in Kandaila Multi Village Rural Water Supply Scheme in Rewa District in Madhya Pradesh.

8. Municipal Corporation Raipur, Chhattisgarh for Augmentation of Raipur Water Supply Scheme Phase-II Package-V consisting of 100 to 500 mm dia DI K7 pipes for 341.10 km and 500 to 800 mm dia DI K9 pipes for 5.79 km including allied civil works and 40,281 Nos. House Service Connections of the value of Rs.12,793.02 Lakhs in Chhatisgarh.

9. Madhya Pradesh Jal Nigam Maryadit for Gadakota Multi village Rural Water Supply Scheme in Sagar district consisting of 100 to 450 mm dia DI (K-7) Pipes for 160.38 Km, 100 to 450 mm dia DI (K9) pipes for 12.32 Km and 90 to 200 mm dia HDPE (PN-6) Pipes for 626.34 km including Intake well 18.27 MLD, Water Treatment Plant 15.21 MLD, Over head Reservoirs, House service connections 16,200 Nos. Clear Water Pumping Mains and allied civil works of the value of Rs.11,393.00 Lakhs in Madhya Pradesh.

Approach Bridge constructed for a length of 588 meters and width of 4.20 meters at Intake well in Gadakota Multi Village Rural Water Supply Scheme in Sagar District in Madhya Pradesh.

10. Public Health Engineering Department, Jahazpur JJM, for Chambal Bhilwara Water Supply Project Phase II Consisting of 100 to 250 mm dia DI and 75 to 225 mm dia HDPE Pipes including Clear Water Reservoir : 3 Nos (50 KL to 100 KL) Over Head Service Reservoir : 14 Nos (75 KL to 250 KL) Pumping Station with Chlorination Room:- 1 No HSC:- 32,990 nos PLC & SCADA System of the value of Rs.11,000.93 Lakhs in Rajasthan.

11. Dimbhe Dam Division, Manchar, Pune, for Construction of Chilhewadi Left bank pipe line km.1 to 40 including two structures on river crossing on Mandavi river & 3 Structures on Nalla crossing along with pipeline distribution system up to outlet for Maharashtra Krishna

Valley Development Corporation. The Project comprises of PCCP pipeline of 900-1500 mm dia for 28.11 Km and bWsC Pipeline of 350-800 mm dia for 9.14 km including 1500 mm dia MS Pipeline for Crossing River and nallah of the value of Rs.8,662.72 Lakhs in Maharashtra.

12. Maharashtra Jeevan Pradhikaran Division, Buldhana, for RCC Design, Construction, Commissioning and Trial Run for Buldhana & 4 Village Water Supply Scheme. The Project comprises of PCCP pipeline of 600 to 800 mm dia for 27.18 km of the value of Rs.7,436.25 Lakhs in Maharashtra.

13. Gosikhurd Left Bank Canal Division, Wahi (Pauni), Dist. Bhandara, for Execution of Pauni Lift Irrigation Scheme consisting of 600 to 1400 mm dia PCCP pipes for 15.735 kms, 63 to 315 mm dia PVC pipes for 59.024 kms and 350 to 600 mm dia DI Pipes for 9.63 kms and Construction of Pump House, Delivery Chambers, etc. along with allied works of the value of Rs.5,395.71 Lakhs in Maharashtra.

14. Ghodazari Canal Division, Nagbhid, Dist.-Chandrapur, for Construction of Pipe Distribution Network along with CADWM Works of Tail Dy. (RD 25230 m) on Sub Branch No.1 of Ghodazari Branch of GRBC of Gosikhurd Project. (Creation of Irrigation Potential of 2537.39 Ha) consisting of 110 to 315 mm dia - HDPE Pipes - 153.21 Kms, 350 to 600 mm dia DI Pipes - 1.13 Kms, 355 to 630 mm dia HDPE Pipes - 13.28 Kms, 700 to 1600 mm dia PCCP Pipes - 10.80 Kms of the value of Rs.5,028.19 Lakhs in Maharashtra.

(ii) Companys works on many Water Supply Projects and Drainage Schemes valued more than Rs.5,000 Lakhs each are progressing well and/or nearing completion and the noteworthy amongst them are:-

1. Sulwade Jamphal Kanoli Lift Irrigation Division, Dhule for Engineering, Procurement and Construction (EPC), Trial, Testing, Commissioning of Gravity Piped Distribution Network to irrigate 26907 Ha. Command area of Jam-phal Dam under Sulwade Jamphal Kanoli Lift Irrigation Project, Tal. Shindkheda Dist. Dhule including Operation and Maintenance of entire system for five years consisting of 600 to 2000 mm dia PCCP Pipes for 94.65 Kms, 2100 mm dia M.S. pipes for 6.3 Kms and 110 to 560 mm dia HDPE Pipes for 626.80 Kms. along with allied works of the value of Rs.85,887.65 Lakhs in Maharashtra.

2. Rural Water Supply & Sanitation, Odisha for Execution of 4 Nos. Individual Rural Piped Water Supply Project pertaining to Astaranga, Gop, Kakatpur, Delang, Puri Sadar and Satyabadi block of Puri District including 5 years O&M on EPC contract under the package on EPC contract consisting of DI K9 Pipeline - 82.00 Kms, DI K7 & HDPE Pipeline - 1,562.00 Kms, Construction of WTPs and CW Pump House 16.5 MLD to 40 MLD, Rapid Intake well cum pump house, ELSRs, Sumps, Grid connected solar plan 700 KWp, electro mechanical items, SCADA, house service connections, etc. of the value of Rs.63,916.28 Lakhs in Odisha.

3. Minor Irrigation and Ground Water Development Division, Koppal, for filing of tanks in Kushtagi Taluk of Koppal district by lifting water from Kishna River for ground water development and drinking purpose Pipeline consisting of 500 to 800 mm dia BWSC, 150 to 1250 mm dia MS and 160 to 280 mm dia HDPE pipes, construction of intake channel, jack well cum pump house with Power supply including terminal bays, laying of transmission lines etc. including civil works of the value of Rs.56,105.03 Lakhs in Karnataka.

MANAGEMENT DISCUSSION AND ANALYSIS

4. State Water & Sanitation Mission, Kanpur Water Supply Scheme and various Rural Water Supply Projects in the State of Uttar Pradesh, consisting of Survey, Design, Preparation of DPR, Construction, Construction of tube well / Intake Well, WTP rising / pressure mains, CWRs, overhead tanks, distribution pipe networks, individual house connections, public stand posts, Retrofitting etc. of the value of Rs.55,000.00 Lakhs.

5. Jalgaon Medium Project Division No.2, Jalgaon for Engineering, Procurement and Construction (EPC) of Civil, Mechanical and Electrical works for Pressurised Piped Distribution Network of Varkhede Londhe irrigation Project including Operation and Maintenance of entire system for five years for CCA 8290 Ha. Tal. Chalisgaon Dist. Jalgaon consisting of 600 to 2000 mm dia PCCP Pipes for 44.45 Kms, M.S. pipes 1,122.27 M.T., 75 to 560 mm dia HDPE Pipe for 251.06 Kms. Construction of Pump house, 11/3.3kv switchyard etc. along with allied works of the value of Rs.49,503.87 Lakhs in Maharashtra.

1700 mm dia PCCP pipeline laying for Pressurised Piped Distribution Network of Varkhede Londhe Irrigation Project, Jalgaon, Maharashtra

6. The Public Health Circle, Warangal for Water Supply Projects in 30 ULBs & Sewerage Projects in 03 ULBs under AMRUT 2.0 under the jurisdiction of Adilabad, Karimnagar & Warangal PH Divisions Package - 1. The project consist of construction of Sewerage Treatment Pants, Wet wells, RCC, DI K7 & K9 Pipelines, ELSRs, Inspection chambers, House Sewer Connections, Bulk flow meters, compound wall, staff quarters, etc. under M/s AMRIL-SCPL-IHP (JV). The total value of work is Rs.1,13,776.52 Lakhs out of which IHPs share is Rs.22,755.30 Lakhs in Telangana.

7. Minor Irrigation & Ground Water Development Division, Kalaburgi Lift Irrigation Scheme consisting of Survey, investigation, design, supply, installation, testing etc., Filling of tanks in Kalaburagi (south) taluk of Kalaburagi district by lifting

water from Bennithora reservoir for ground water development and drinking purpose, comprising of head works, Construction of Approach Channel, Intake Channel, Jack Well cum Pump House, Raw Water Pumping, 100 to 300 mm dia MS Pipes and 500 mm dia BWSC pipes, laying of transmission lines. Raising main, Delivery chambers and gravity mains etc along with Pumps & Motors, Rejuvenation of Kere Bhosga & Melkunda Tank of the value of Rs.19,879.99 Lakhs in Karnataka.

8. Maharashtra Jeevan Pradhikaran Division, Buldhana, Maharashtra for Jalgaon Jamod & 150 Villages Regional Rural Water Supply Scheme (Retrofitting), Tq. Jalgaon Jamod & Sangrampur, Dist.Buldhana (Under Jal Jeevan Mission). The Project comprises of PCCP pipeline of 450 to 700 mm dia of 26.34 km, 100 to 500 mm dia DI K-7 pipes of 253.83 Km, MS Pipeline of 450 mm to 800 mm dia of 1.90 Km of the value of Rs.19,402.90 Lakhs.

9. Madhya Pradesh Jal Nigam Maryadit for Naharayi Multi village Rural Water Supply Scheme in District Bhopal & Vidisha consisting of 100 to 500 mm dia DI (K-7) Pipes for 187.732 Km, 100 mm to 350 mm dia DI (K9) pipes for 16.440 Km and 63 to 200 mm dia HDPE (PN-6) Pipes for 478.757 km including Intake well 28.32 MLD, Water Treatment Plant 21.50 MLD, Overhead Tank 28 Nos. (50 KL to 400 KL) and 12,737 Nos. House Service Connection of the value of Rs.17,739.00 Lakhs in Madhya Pradesh.

10. Public Health Engineering Department, Jaipur, Region-II, for Bisalpur Jaipur Water Supply Project Stage-II, Phase-I, including Construction of WTP having capacity of 216 MLD extendable to 360 MLD at Surajpura Construction of Pumping Station-2 nos. Clear Water Reservoirs having capacity of 30 MLD at Renwal- 2 nos. Construction of 150 KL Capacity RCC underground Sump for collection of recycled water. PLC & SCADA System at WTP and Pump Houses conducting of Surge Analysis Solar Power Generation System of the value of Rs.17,315.58 Lakhs in Rajasthan.

11. M/s Laxmi Civil Engineering Services Pvt. Ltd., for supply of 1700 mm dia PCCP pipes of 64.050 Kms. length to Jath Lift Irrigation Scheme, Dist. Sangli of value of Rs.16,552.00 Lakhs in Maharashtra.

12. Urmodi Dam Division, Satara for Construction of Piped Distribution Network (PDN) for Palashi Branch, Vadjal Branch, Dy-1, Dy-2 & Minor No.1 to 18 on Man Canal of Urmodi Irrigation Project consisting 600 mm to 1600 mm dia PCCP Pipes of 24.66 Kms, 350 mm to 500 mm dia BWSC Pipes of 45.32 Kms, 110 mm to 315 mm HDPE Pipes of 344.30 Kms and allied civil works of the value of Rs.15,911.07 Lakhs in Maharashtra.

400 mm dia BWSC pipeline laying work at Man Canal PDN of Urmodi Irrigation Project in Maharashtra.

13. Gajapati Water Supply Scheme for Rural Piped Water Supply Projects pertaining to Kasinagar & Gumma block of Gajapati District consisting of DI K9 100 to 400 mm dia for 94,799 mtrs, DI K7 pipes 200 to 250 mm dia for 37,937 mtrs and HDPE pipes 90 to 160 mm dia for 2,56,833 mtrs including operation and maintenance of the value of Rs.13,482.10 Lakhs in Odisha.

Installed HSC Pumps of Capacity 110 KW Each (2 Working + 1Stand by) at Intermediate Booster Pumping Station, Bhoopathi Laxmipur Village, Goribandha for Gajapati Water Supply Scheme, Odisha.

14. The Public Health Circle, Nellore for Ongole Municipal Corporation Water Supply Improvements Scheme, AMRUT project consisting of 200 to 450 mm dia DI pipeline, 110 to 315 mm dia HDPE pipeline, 1200 mm dia MS Pipeline and 500 mm dia BWSC pipeline of the value of Rs.12,256.62 Lakhs in Andhra Pradesh.

15. J. C. Nagi Reddy Drinking Water Supply Scheme in Ananthapuramu District (Phase-IV) for Rural Water Supply & Sanitation Department in Andhra Pradesh consisting of 350, 800 & 900 mm dia BWSC pipes of the value of Rs.11,335.89 Lakhs in Andhra Pradesh.

16. Solapur Irrigation Division, Solapur for construction of Pipe Distribution Network for Main Canal Stage-1 & 2 of its Minors & Sub Minors on Dahigaon Lift Irrigation Scheme Tal- Karmala consisting of 700 to 1000 mm dia PCCP pipes for 12.06 kms and 90 to 630 mm dia HDPE pipes for 285.70 Kms and 63 to 250 mm dia PVC Pipes for 7.57 Km and allied civil works of the value of Rs.10,629.18 Lakhs in Maharashtra.

800 mm dia PCCP pipeline laying for Piped Distribution Network of Dahigaon Lift Irrigation Scheme, Solapur, Maharashtra.

17. For Construction and Commissioning of Wastewater Treatment Plants, Rising Main, main Sewers and laterals including machine holes and lift Sewage pumping stations consisting of 250 mm dia & 300 mm dia DwC - HDPE Pipes - 65,370 Mtrs, 100 mm Dia and 150 mm Dia DI K9 Class Pipes - 2,030 Mtrs., 110 mm dia CPVC Pipes - 37,670 Mtrs. for RR Nagar & Dasarahalli Zone in 110 Village Areas (Phase-II) Under Karnataka Water Security and Disaster Resilience Program (KWSDRP) for Bangalore Water Supply & Sewerage Board, Bangalore of the value of Rs.10,104.00 Lakhs in Karnataka.

18. Madhya Pradesh Jal Nigam Maryadit for Kerwa Multi village Rural Water Supply Scheme in District Bhopal consisting of 150 to 350 mm dia DI (K-7) Pipes for 120.639 Km, 200 mm to 350 mm dia DI (K9) pipes for 20.912 Km and 63 to 250 mm dia HDPE (PN-6) Pipes for 179.273 km including Intake well 16.70 MLD, Water Treatment Plant 11.30 MLD, Overhead Tank 14 Nos. (50 KL to 250 KL) and 8,842 Nos. House Service Connection of the value of Rs.8,080.24 Lakhs in Madhya Pradesh.

19. For Manufacture, supply, laying, jointing & testing of RCC NP3 Class pipes of 400 mm, 2000 mm, 2200 mm and 2400 mm dia for 5,000 mtrs. 2600 mm dia 75 mtrs MS Pipes from Mylasandra STP to Doddabele STP for Bangalore Water Supply & Sewerage Board, Bangalore of the value of Rs.7,000.00 Lakhs in Karnataka.

20. For Supply, Laying, jointing of 100 mm, 150 mm, 200 mm, 250 mm and 300 mm dia DI K-9 Class Pipes for Water Supply Pipe Line under Un-accounted Flow of Water (UFW) for a length of 1,08,800 mtrs,15,300 Nos of House Service Connections, 932 Fixing of Sluice Valves, Water Meters, EMF Meters, etc and other connected civil works for Bangalore Water Supply & Sewerage Board, Bangalore of the value of Rs.6,736.00 Lakhs in Karnataka.

21. M/s Laxmi Civil Engineering Services Pvt. Ltd., for supply of 1700 mm dia PCC pipes of 28.149 kms. length to Krishna- Koyna Lift Irrigation Project - Mhaisal Extended Jath PDN of the value of Rs.6,343 Lakhs in Maharashtra.

22. M/s S. V. Jadhav Contractors Pvt. Ltd., for supply of 700 to 1300 mm dia PCC pipes and 400 to 600 mm dia BWSC pipes to their Bevnur Water Supply Scheme Project of the value of Rs.6,250 Lakhs in Maharashtra.

23. For Supply, Laying, Jointing & Testing of DI K-9 Class Pipes from 100 mm to 600 mm dia for 1,22,000 Mtrs., and DI Specials, Valves etc. and connected civil works for Providing Water Supply Facilities to Phase-1 of Arkavathi BDA Layout, for Bangalore Water Supply & Sewerage Board, Bangalore of the value of Rs.5,707.68 Lakhs in Karnataka

24. Municipal Corporation, Tirupati Municipal Corporation under AMRUT Scheme for providing Sewerage Network and Sewerage House Service Connections, Construction of 500 KLD consisting of DWC & RCC pipelines including civil work of the value of Rs.5,297.47 Lakhs in Andhra Pradesh.

25. M/s. Swastik Construction., for supply of 500 to 1700 mm dia PCC pipes to Kamath Gravity Main, Tal. Atpadi, Dist. Sangli of the value of Rs.5,120.60 Lakhs in Maharashtra.

26. M/s Koya & Company Construction Limited, Construction and commissioning on turnkey basis of Bonthu - Saravakota - Kothuru L. I. Scheme on Mahendratanya River in Saravakota Mandal of Srikakulam District PSC, consisting of RCC & PVC Pipelines MS Pipeline - 2.54 Kms, PSC Pipeline - 14.70 Kms, rCc Pipelines - 4.00 Kms and PVC Pipelines - 20.00 Kms of the value of Rs.5,061.25 Lakhs in Andhra Pradesh.

(B) Bar Wrapped Steel Cylinder (BWSC) Pipes/Prestressed Concrete Cylinder Pipes (PCCP)/ Prestressed Concrete Pipes (PSC):

The BWSC and PCCP pipes introduced by the Company as an alternative pipe materials to M.S. and D.I. pipes have become popular amongst various Government authorities. The Company has undertaken / is undertaking several projects involving BWSC & PCCP pipes. To meet the demand of these pipes, the Company had specially set up manufacturing plants at Choutuppal in Telangana, Chilamathur in Andhra Pradesh, Miraj, Dhule, Walwa and Kanhan in Maharashtra. In addition to the above, the Company has also created facilities to manufacture these pipes in its existing factories at Patancheru, Kekri, Sikar and Karari to cater to the local demands. During the year under review, these plants produced 32.305 Kms of BwSc pipes valued at Rs.1,838.01 Lakhs, 225.992 Kms of PCCP Pipes valued at Rs.36,822.11 Lakhs and 5.640 Kms of PSC Pipes valued at Rs.278.70 Lakhs.

During the year the Company has received orders worth Rs.1,396.19 Lakhs for BWSC pipes alongwith other civil works, orders worth Rs.26,736.57 Lakhs for PCCP pipes alongwith other civil works and orders worth Rs.833.27 Lakhs for PSC pipes along with other civil works.

(C) Railway Sleepers:

The Company has total outstanding order book of Rs.8,282.98 Lakhs as on 31 st March, 2025. During the year, the Company has received a work order amounting to Rs.4,321.40 Lakhs from the Ministry of Railways, Railway Board, New Delhi, for the manufacture of 1,55,000 sleepers. The Company has manufactured a total of 2,27,796 sleepers, amounting to Rs.6,274.42 Lakhs and supplied a total of 2,08,574 sleepers, amounting to Rs.5,763.31 Lakhs. As on 31 st March, 2026 the total outstanding order book is of Rs.6,841.07 Lakhs.

Wider Base Sleepers Confirming to RDSO Drawing No. RT-8746 Stacked on Siding Yard for Loading into Wagons/Trucks at Karari-II, in Uttar Pradesh

II. Land Development:

Hadapsar, Pune: Four phases of Residential Real Estate project named Dosti Greenscapes by Dosti Realty Ltd. have been launched on revenue share basis on the Companys land at Hadapsar, Pune. The entire project consists of 12 residential towers and 1 commercial tower with saleable area of 14.77 lakhs sq. ft. (approx.) RERA carpet area of 10.54 lakhs sq. ft. (approx.). Presently, 3 towers of Phase I, 3 towers of Phase II, 2 Towers of Phase III and 1 Tower of Phase IV have been launched. These towers consist 1,025 flats with RERA carpet area of 8,40,117 lakhs sq. ft. (approx.). The revenue generated from the sale of the project will be shared in the ratio of 38% to the Company and 62% to M/s. Dosti Realty Ltd.

As on 31 81 March, 2026, 683 flats having Sale value of Rs.557.70 Crores have been booked out of which the share of the Company is Rs.211.93 Crores (38%). As per schedule of payment of the buyers of flats, the Company has received advance of Rs.150.35 Crores of its share of revenue.

Vadgaon, Pune: Kalptaru Ltd. is developing a Residential / Commercial real estate project named Kalpataru Blossoms. The said project have been launched on Plot A of area admeasuring of 20,900 sq. mtrs or thereabouts on revenue share basis on the Companys land at Vadgaon, Pune. The present project consists of 3 residential towers i.e. Tower 1, Tower 2ABC and Tower 3AB. These towers consist of 463 flats and 7 shops with saleable area of 8.58 lakhs sq. ft. (approx.) and RERA carpet area of 5.65 lakhs sq. ft. (approx.).

As on 31 st March, 2026, all towers on Plot A have been launched either partially or fully. These launched towers consist of 463 flats and 7 shops with RERA carpet area of 5.65 lakhs sq. ft. (approx.). The revenue generated from the sale of the project will be shared in the ratio of 32.50% to the Company and 67.50% to M/s. Kalpataru Ltd.

As on 31 st March, 2026, 188 flats having Sale value of Rs.368.98 Crores have been booked out of which the share of the Company is approx. Rs.119.92 Crores. As per schedule of payment of the buyers of flats, the Company has received advance of Rs.36.91 crores of its share of revenue.

The development of Plot B of area admeasuring of 41,700 sq. mtrs or thereabouts will be launch in due course of time.

Badarpur, Delhi: The Company has executed Development Agreement with M/s. Birla Estates Pvt. Ltd. on 18 th July, 2023 for about 6.8 acres land at Badarpur, New Delhi to develop residential project on revenue share basis. It is likely to yield a development potential of about 13 lakhs sq. ft. (approx.) of saleable area. The project is expected to be launched in phases after obtaining necessary approvals from the authorities. The revenue generated from the sale of the project will be shared in the ratio of 36.50% to the Company and 63.50% to Birla Estates Pvt. Ltd.

SRA Project, Wadala, Mumbai: The development of the SRA Project of Companys land at Wadala Mumbai on area share basis are at stages of obtaining development related approvals from various Authorities.

4. Outlook:

During the last decade, Urban area limits are spreading wider and wider to peripheral areas, but at the same time, the basic amenities like Water Supply, Drainage, etc are not keeping pace with the requirement of more and more urbanization. Apart from the above, most of the rural areas in India fall short of access to drinking water.

Central Government, State Governments and local bodies are making best efforts to supply safe drinking water. Hence, number of water supply schemes are under anvil.

Har Ghar Jal (Water to Every Household) is a Scheme announced in the Union Budget 2019 by the Government of India with the aim to provide tap water to every rural household by the year 2024 at a cost of Rs.5 Lakhs crores has been extended till 2028.

To augment agricultural output, Lift Irrigation Schemes (LIS) are undertaken by various State Governments. Hence, number of LIS are under anvil.

Further to make cities and rural areas under more hygienic conditions and endeavour towards Swachha Bharat number of sewerage disposals and drainage schemes are also coming up.

Barring the above factors, the long term outlook for the Company in water supply, irrigation, sewerage and drainage segments is encouraging and good. The Company will keep a close watch on the evolving scenarios and will prepare itself for adapting to the changing environment.

5. Risks & Concerns:

The Company carries out various water supply related projects across India for State / Central Government agencies. The Company is undertaking various turnkey projects of water supply schemes, irrigation and sewages schemes for various State Governments. The entire project and the future of the project will largely depend on the Policy of Central Government and State Government as well as on the approval of finance and allocation of funds as well as their ability to raise funds to undertake such water supply projects amongst various infrastructure related projects being implemented by them. Any adverse change in the Policy or the lack of funds for these projects will delay the work resulting in higher cost of and can affect the business prospects of the industry and the Company.

Even change in the State Government / Central Government will have a sizable impact on the existing as well as future projects of the Company.

In case of non-release of funds by the Government under Jal Jeevan Mission (JJM) Projects contractors hesitated to book and lift raw materials. The Company may also face liquidity crunch and working capital issue in case of the contract amount is not released.

There is a severe competition observed during the year from various competitors who are the manufactures of alternate pipes like Ductile Iron Pipes, HDPE Pipes and Spirally Welded Steel Pipes, which may impact the Companys prospects in form of reduction in demand of Pipe products of the Company.

During the year under review, due to sluggish domestic & global demand, the prices of Steel, DI Pipes & HDPE pipes shown downtrend till December, 2025. Thereafter in last quarter for the financial year 2025-26, due to turnover pressure & Gulf War, prices rebound much higher than prices at the start of Year.

The ongoing geopolitical conflict between the United States and Iran has heightened uncertainty in global energy markets, leading to a sharp rise in crude oil prices. This escalation leads to fuel inflationary pressures, increase input costs, and strain fiscal balances across South Asia, particularly for economies dependent on oil imports. The sustained volatility in energy prices impact project costs and overall financial performance. In Steel (HR Coils / Plates & PC Wire) the net rise was 14%, HDPE Pipes the net rise was 57%, DI Pipes the net rise

Ratios		2025-26	2024-25	Change(%)	Explanation for change
1	Debtors Turnover Ratio	2.03	2.05	(0.98)	-
2	Inventory Turnover Ratio	1.88	2.78	(32.37)	Ratio has been decreased due to higher average inventory on account of purchase of FSI/TDR in Real Estate Segment
3	Interest Coverage Ratio	4.08	3.16	29.11	Improvement in the ratio is mainly due to reduction in interest cost.
4	Current Ratio	2.03	1.92	5.73	-
5	Debt Equity Ratio	0.28	0.33	(15.15)	-
6	Operating Profit Margin (%)	9.65	11.50	(16.09)	-
7	Net Profit Margin (%)	10.81	37.42	(71.11)	Net profit margin of current year 2025-26 is lower than previous year 2024-25, is mainly due to variation in exceptional gain.

Please refer schedule No. 2.45 of the Notes to Financial Statements.

9. Details of any change in the Return on Net Worth as compared to the previous financial year 2024-25 along with a detailed explanation thereof:

Particulars	2025-26	2024-25	Change %
Return on Net worth*	9.86	50.60	(80.51)

* The decrease is mainly due to variation in exceptional gain. 10. Human Resources and Industrial Relations:

To follow philosophy of Home grown Talent we groom Internal Talent for important roles, guiding internal talent movement and development plans, which undergo reviews and adjustments as necessary. In 2025-26, we have initiated structured senior leadership development program Uday Development Centre followed with Learning Lab under guidance of CMD, Vice-Chairman & Joint MD and Senior Management team with help of external experts. HR Team is also working on Managerial potential assessment for Mid band Managers and will be working on Managerial capability development initiatives.

To improve the talent pipeline of the Company, we have implemented key strategic initiatives such as development of IHP Technical Training Framework, hiring industry experts, investing in capabilities development, HR digitalisation to build a future-ready organisation. To improve quality of talent hiring we have designed IHPs own Technical & Cognitive capability assessment model with the help of external experts which is used for recruitment of Engineers. To hire best talent we also participated in Campus Hiring process in well-known Engineering colleges in India for hiring fresh Graduate Engineers & Post graduates in Construction/Project Management. These employees are groomed on fast track as per our development framework.

Training & Development:

We believe that our employees are our most valuable asset, and investing in their development is essential to our long-term success. In 2025-26, IHP continued to prioritize training and development initiatives to enhance the skills and capabilities of human capital. During year 2025-26 we conducted various training programs encompassing technical, functional, leadership development, Safety, productivity enhancement tools (Advanced Excel, Power BI). Structured skill development programs were conducted for Manufacturing & Project employees, Systems & ERP departments separately. During the Training program employees are also evaluated through an online test to understand learning captured. Training feedback reports are prepared after every training session to understand the effectiveness & impact of training program and to identify the knowledge captured by the participants. This feedback is used for training process improvement.

The Company has total strength of 1,484 permanent employees as on 31 st March, 2026 working at various locations at Factories / Project offices / Head Office and Research & Development Division.

was 22%, and cement the net rise was 3%. This has impacted profit margin of Company.

6. Internal Control Systems and their adequacy:

The Company has adequate internal control procedures commensurate with its size and nature of business that ensures control over various

7. Financial Performance with respect to Operational Performance:

functions of the organisation. The internal control system provides for guidelines, authorisation and approval procedures.

The internal audit reports, post audit reviews are carried out to ensure compliance with the Companys policies and procedures.

For the year ended 31 st March, 2026, the Revenue from Operations of the Company was Rs.1,30,556.83 Lakhs as compared to previous year Revenue from Operations of Rs.1,49,123.14 Lakhs.

The profit before tax was Rs.18,768.04 Lakhs as against Rs.66,328.93 Lakhs achieved last year. The order book position was Rs.4,118.97 Crores as on 6 th May, 2026 as compared to Rs.4,002.48 Crores as on 8 th May, 2025.

8. Details of significant changes (i.e. change as compared to the immediate previous financial year) in key financial ratios, along with detailed explanations therefor:

11. Cautionary Statement:

Statements in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates and expectations may be forward looking statements within the meaning of applicable laws and regulations. Actual results might differ substantially or materially from those expressed or implied. Important developments that could affect the Companys operations include a schedule of implementation of various water supply related projects undertaken by various States / Central Government Agencies, significant changes in political and economic environment in India, exchange rate fluctuations, prices and availability of key raw materials like steel and cement, tax laws, litigations, labour relations and interest costs, etc.

For and on behalf of the Board of Directors,

Rajas R. Doshi

Chairman & Managing Director DIN: 00050594

Place : Mumbai Dated : 14 th May, 2026