Indifra Ltd Management Discussions

Financial Year 2025-2026

1. Industry Landscape

Indias infrastructure development continues to be supported by a long-term expansion in transportation, urban infrastructure, commercial development, public facilities, energy networks and modern construction.

The nature of infrastructure itself is also changing. Projects are becoming larger, technically more demanding and increasingly integrated. Modern buildings require specialised facades, sophisticated electrical and utility systems and greater coordination between design, engineering, materials and execution.

For companies operating within the infrastructure value chain, the opportunity therefore extends beyond construction volume. Increasing project sophistication is creating demand for specialised partners capable of delivering individual packages to the standards required by major developers and engineering organisations.

2. Business Development

FY 2025-26 saw Indifra continue to strengthen its position within specialised infrastructure solutions.

The fagade business expanded meaningfully, with the Company participating in projects across major public and private infrastructure developments. Our experience now extends across transportation infrastructure, institutional developments and technologically advanced large-scale projects.

Importantly, repeat and expanded engagements with leading construction organisations demonstrate increasing acceptance of Indifras execution capabilities.

The Companys broader infrastructure and distribution activities also continued to develop, providing diversification beyond any single project category.

Recognition received from business partners for performance within our distribution activities further reinforces the importance of maintaining multiple complementary business verticals.

3. Building Scale Through Specialisation

Indifras strategy is not to attempt to participate in every part of infrastructure development.

Instead, the Company intends to build depth in selected areas where specialised knowledge, reliable execution and strong relationships can create a sustainable advantage.

Fagade solutions represent an important part of this strategy. As modern transportation hubs, commercial developments, institutional buildings and public infrastructure become increasingly design-intensive, the building envelope itself has become a specialised engineering discipline.

Our growing experience in this area provides a foundation for participating in progressively larger and more technically demanding opportunities.

4. Expanding the Infrastructure Horizon

At the same time, Indifra intends to avoid becoming dependent upon a single vertical.

The Companys broader objective is to gradually increase the range of infrastructure solutions and associated products it can offer, allowing existing relationships and execution capabilities to create opportunities across adjacent segments.

This approach can provide both diversification and greater participation in the overall value of infrastructure development.

5. Opportunities

The Company sees opportunities arising from:

• Continued investment in transportation and urban infrastructure;

• Increasing architectural and technical complexity of public and private developments;

• Growth in specialised fagade requirements;

• Expansion of energy and utility infrastructure;

• Opportunities created through relationships with major construction and engineering companies;

• Demand for quality electrical and infrastructure-related products; and

• Expansion into adjacent infrastructure solutions that complement existing capabilities.

6. Challenges and Risk Management

Infrastructure businesses remain exposed to fluctuations in commodity and material prices, execution timelines, working-capital cycles, labour availability and competitive bidding.

Large projects additionally require coordination among multiple stakeholders, making project planning and execution discipline essential.

Indifra therefore remains focused on selective project evaluation, quality control, vendor relationships and financial discipline while pursuing growth.

7. Material Developments in Human Resources / Industrial Relations:

The Company continues to maintain cordial and harmonious industrial relations across all levels. We recognize that our employees are our most valuable asset, and their dedication, skill, and commitment have been pivotal in driving the Companys growth and expansion.

As of March 31, 2026, the Company had a total workforce of 31 employees. We have consistently fostered a culture of inclusivity, collaboration, and performance, while ensuring a safe and conducive work environment.

Our approach to human resources emphasizes merit-based recruitment, diversity, and equal opportunity. The Company is committed to building a diverse and inclusive workforce and continues to provide opportunities for professional development, skill enhancement, and employee engagement.

Going forward, the Company will continue to invest in human capital, focusing on employee well-being, training initiatives, and fostering a high-performance culture aligned with our strategic objectives.

8. Internal Control System and Their Adequacy

The Company has established adequate internal control systems commensurate with the nature, size and complexity of its business.

These controls are designed to ensure the orderly and efficient conduct of operations, safeguarding of assets, accuracy and reliability of financial reporting, and compliance with applicable laws, regulations and internal policies.

The Company has a well-defined delegation of authority and standardized operating procedures to ensure effective monitoring and control over business processes. The internal control framework is periodically reviewed and strengthened to address changing business requirements and ensure operational efficiency. The Management believes that the existing internal control systems are adequate and effective for the Companys operations.

9. Execution and Organisational Capability

The increasing scale and complexity of projects require corresponding improvements in organisational capability.

During the year, the Company continued to strengthen project coordination, technical understanding and relationships across the infrastructure ecosystem.

Our approach remains centred on practical execution - delivering to specification, resolving challenges efficiently and developing relationships that can extend beyond a single project.

Discussion on Financial Performance with respect to Operational Performance:

*Company is operational in single segment.

10. Details of significant changes in key financial ratio, along with detailed explanations:

Ratio Analysis

*The variance in many ratios are due to operational changes. Revenue growth along with higher efficiency on working capital"improvement has resulted in an improvement in certain ratios.

11. Disclosure of Accounting Treatment

The financial statements of the Company have been prepared in accordance with Indian Accounting Standard ("IND-AS") notified under the Companies (Indian Accounting Standards) Rules, 2021 read with section 133 of the Companies Act, 2013.