Integrity Infrabuild Developers Ltd Management Discussions

1. INDUSTRY STRUCTURE AND DEVELOPMENTS:

The Company was originally incorporated as a partnership firm. Subsequently, Partnership Firm was converted to public Limited company under the Companies Act, 2013 with the name and style of —Integrity Infrabuild Developers Limited and received a Certificate of Incorporation from the Registrar of Companies as on June 01, 2024.

Further the Company has issued 12,00,000 equity share as on May 16,2025 pursuant to Initial Public Offer (IPO) and listed on the NSE EMERGE SME Platform with effect from May 20, 2025.

Your Company is engaged in the business construction and maintenance of motorways, streets, roads, other vehicular and pedestrian ways, highways, bridges, tunnels, and subways. While the construction industry remains the largest customer segment, your company continues to invest in construction modernization, including roads, highways, bridges, tunnels, urban infrastructure, and industrial development. Consequently, your Company has been able to make good progress in acquiring new international as well as domestic customers/brands in various markets.

2. COMPANY OVERVIEW AND BUSINESS PERFORMANCE:

Your Company is engaged in the construction and maintenance of motorways, streets, roads, highways, bridges, tunnels, subways, and other vehicular and pedestrian pathways. With a strong foundation in civil infrastructure, the Company has consistently delivered high-quality projects across geographies.

During the year under review, the Company made significant strides in expanding its customer base, both domestically and internationally. Strategic investments in construction modernization —particularly in smart highways, resilient bridges, and sustainable urban infrastructure—have enhanced operational efficiency and project delivery timelines.

Key highlights include:

• Successful completion of 112 Projects Since incorporation of Rural Roads and Bridges with major work of Roads.

• Entry into Tapi, Bharuch & Rajpipla Road & Building Department through Subcontracting.

• Adoption of advanced construction technologies such as BIM, precast systems, and automated machinery.

3. FINANCIAL PERFORMANCE:

The Company recorded robust growth in revenue and profitability, driven by increased project execution and improved cost management. Enhanced bidding capabilities and a diversified project portfolio have contributed to a healthy order book.

• Revenue from operations grew by Rs. 310.00 Lakhs to Rs. 587.44 Lakhs.

• EBITDA margins improved by Rs. 173.12 Lakhs to Rs. 378.61 Lakhs reflecting operational efficiencies.

• Net profit increased by Rs. 111.80 Lakhs to Rs. 277.44 Lakhs supported by higher asset utilization and optimized resource deployment.

4. OPPORTUNITIES AND THREATS:

A. OPPORTUNITIES:

• Government-led infrastructure programs

• Urbanization & Smart Cities: Rapid urban expansion and smart city initiatives are creating demand for roads, subways, and utility infrastructure.

B. THREATS:

• Regulatory Volatility: Frequent changes in land acquisition laws, environmental clearances, and taxation can delay projects.

• Input Cost Inflation: Rising prices of cement, steel, and fuel impact project margins.

• Execution Bottlenecks: Land acquisition delays, labor shortages, and bureaucratic red tape remain persistent challenges.

• Climate Risks: Extreme weather events and sustainability mandates increase design complexity and compliance costs.

5. MODERNIZATION AND INNOVATION:

Your Company continues to invest in construction modernization, focusing on:

• Digital project management tools for real-time monitoring.

• Green construction practices and materials.

• Workforce training and safety enhancements.

These initiatives have not only improved project outcomes but also positioned the Company as a preferred partner for complex infrastructure projects.

6. OUTLOOK:

The outlook for the infrastructure sector remains positive, with continued investments expected in roads, highways, bridges, and urban mobility. Your Company is well-positioned to capitalize on these opportunities through its technical expertise, strategic partnerships, and commitment to innovation.

The management remains confident in sustaining growth momentum and delivering longterm value to stakeholders.

7. RISKS AND CONCERNS:

Engaging in the construction and maintenance of infrastructure especially roads, highways, bridges, tunnels, and the extraction of raw materials comes with a wide spectrum of risks.

These span from operational and environmental to financial and regulatory. Heres a breakdown of the key risk categories you should be aware of:

Project Execution and Operational Risks:

• Delays in land acquisition, environmental clearances, and statutory approvals can impact project timelines and cost estimates.

• Unforeseen geological or site conditions may lead to design modifications and execution challenges.

• Labour availability and productivity fluctuations, especially in remote or high-risk zones, can affect delivery schedules.

Market and Economic Volatility:

• Fluctuations in commodity prices—particularly steel, cement, and bitumen—can adversely affect project margins.

• Interest rate movements and inflationary pressures may impact borrowing costs and working capital requirements.

• Global economic uncertainties, including currency volatility, can influence international project viability and profitability.

Regulatory and Compliance Risks

• Changes in government policies, tax regimes, or infrastructure funding models may alter the business landscape.

• Non-compliance with evolving environmental, labour, or safety regulations could result in penalties or reputational damage.

• Delays in arbitration or dispute resolution mechanisms may affect cash flows and project continuity.

Client and Contractual Risks

• Dependence on government contracts exposes the Company to payment delays, scope changes, and administrative bottlenecks.

• Contractual disputes, liquidated damages, or performance guarantees may pose financial and legal risks.

• Concentration of revenue from a limited number of clients or geographies may affect business resilience.

Technology and Cybersecurity Risks

• Increasing reliance on digital project management tools and automated systems introduces vulnerabilities to cyber threats.

• Inadequate data protection or system failures could disrupt operations and compromise sensitive information.

Environmental and Social Risks

• Climate-related disruptions such as floods, heatwaves, or extreme weather events may delay construction activities.

• Community opposition or social unrest near project sites can impact execution and stakeholder engagement.

The Company has instituted robust risk management protocols, including regular monitoring, contingency planning, and compliance audits, to mitigate these risks.

8. INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has in place adequate internal financial controls with reference to financial statement across the organization. The same is subject to review periodically by the internal audit cell for its effectiveness. During the period, such controls were tested and no reportable material weaknesses in the construction and maintenance of motorways, streets, roads. The Statutory Auditors of the Company also test the effectiveness of Internal Financial Controls in accordance with the requisite standards prescribed by ICAI. Their expressed opinion forms part of the Independent Auditors report.

Internal Financial Controls are an integrated part of the risk management process, addressing financial and financial reporting risks. The internal financial controls have been documented, digitized and embedded in the business processes.

Assurance on the effectiveness of internal financial controls is obtained through management reviews, control self-assessment, continuous monitoring by functional experts. We believe that these systems provide reasonable assurance that our internal financial controls are designed effectively and are operating as intended.

During the period, no reportable material weakness was observed.

9. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

Reserves and Surplus: The Reserve and Surplus of Company is Rs. 277.44 Lakhs as on period ended on 31st March, 2025.

Total Income: The Company has earned total income Rs. 10,891.26 Lakhs as on period ended on 31st March, 2025.

10. MATERIAL DEVELOPMENTS IN HUMAN RESOURCE / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF EMPLOYEES EMPLOYED:

Your Company follows a policy of building strong teams of talented professionals. People remain the most valuable asset of your Company.

Your directors would like to place on record their appreciation of the commitment and efficient services rendered by all employees of the Company. The industrial relations continued to remain cordial during the period. Employees being a key factor, the Company encourages employees for continuous learning by conducting periodical training programmes throughout the period.

11. DETAILS OF KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THEREFORE:

The key financial ratios are as below:

Particulars	As at 31st March, 2025	^change in the ratio by more than 25% as compared to the preceding year
Debtors Turnover	17.37	No
Inventory Turnover	79.44	No
Interest Coverage Ratio	5.36	No
Current Ratio	0.77	No
Debt Equity Ratio	4.16	No
Operating Profit Margin	10.69	No
Net Profit Margin	0.03	No
Return on Net Worth	0.15	No

*Your company converted from firm i.e. M/s Integrity Infrabuild to Public Company as on June 01, 2024 and hence previous year this key financial year ration was not applicable.

12. DETAILS OF ANY CHANGES IN RETURN ON NET WORTH AS COMPARED TO IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF:

The Return on Net Worth for F.Y. 2024-25 was 47.23%.The Company is in the growth phase and therefore the Company has incurred substantial expenses towards the business growth and for the purpose of fund raising by getting listed on the SME Platform of NSE.

For and on behalf of the Board	Sd/-
Integrity Infrabuild Developers Limited	Disha Keyurkumar Sheth
Sd/-	Whole Time Director
Keyurkumar Sheth	(DIN: 09063221)
Managing Director
(DIN: 02678042)
Place: Vadodara
Dated: 27th September, 2025