Kaarya Facilities & Services Ltd Management Discussions

About your company

The Indian Facility Management (FM) sector has broken away from traditional labor- reliant structures and entered an era dominated by technology integration and specialized service delivery. As the Indian market expands to hit record infrastructure volumes, your company has repositioned itself from a reactive services provider to a proactive business asset partner. While we maintain our core strength across heavily consolidated sectors like IT, ITES, E- commerce, and BFSI, our operations in FY26 have shifted focus heavily toward specialized demands.

The corporate ecosystem in India is now defined by the expansion of complex Global Capability Centres (GCCs) and advanced logistics hubs. This has naturally raised client standards regarding operational runtime, asset health, and workplace user experiences. Your company has met these changes by accelerating its deployment of specialized technical operations. Instead of managing simple headcount, we are managing critical outcomes. Furthermore, our business has shifted away from baseline upkeep toward service level agreement (SLA)- led models focused on performance uptime and strict transparency.

We remain a proudly home- grown enterprise competing with global multi- nationals. However, our true differentiator in FY26 is no longer just our Pan- India scale, but our data- driven delivery. Our workforce policies have similarly matured; we are countering industry- wide wage inflation and talent gaps by upskilling our front- line staff into fluent asset handlers, turning our physical presence into an innovative, high- efficiency network.

Our core strategy for the future relies on breaking the tie between headcount scaling and margin growth. The Indian FM market remains intensely competitive, but the nature of competition has pivoted from price- undercutting by unorganized players to technological value- add. Your company is actively addressing this by shifting away from low- margin soft services and pursuing specialized hard facility management contracts, such as data centers, industrial process hubs, and specialized healthcare setups where technical capability commands stronger returns.

To safeguard our bottom line from rising labour and operating costs, your company is heavily embedding predictive tools into our daily service delivery. This data- driven execution, combined with tighter controls on our corporate indirect costs, positions your company to scale its revenue faster than its expenses, stabilizing a clear path toward sustainable, compounding profitability.

The current Indian infrastructure market offers highly specific, lucrative opportunities for organizations with built- out technical frameworks. The most valuable openings sit squarely within the following domains:

-Predictive Asset Management: Moving corporate landholders away from reactive maintenance toward IoT

- driven, sensor- mapped systems that monitor HVAC, lighting, and power grids in real time.

- Measurable ESG & Energy Tracking: Assisting corporate clients with their green compliance goals through active energy reduction programs, resource tracking, and waste circularity systems directly embedded into their facility operations.

- Multi- Location Integration: Capitalizing on the rise of distributed retail networks, logistics parks, and regional office clusters by utilizing mobile- first platforms that unify disparate geographic facilities under a single, central operations dashboard.

The financial statements have been prepared in compliance with the requirements of the Companies Act 2013 and Accounting Standards (AS) notified by the companies (Accounting Standards) Rules, 2006. The salient features of the company performance are:-

• Total Sales of Rs. 388894000/- Net profit of Rs. 20165000/- Earnings per share (Basic) for the year of Rs. 2.14 of Rs. 10/share and Rs. 1.99 (Diluted) (which was Rs. 1.84 in the previous year (both basic and diluted) - Net worth of Rs. 26837000 / - as on March 31, 2026, Kaarya Facilities and Services Limited.

Your board has not received any disclosure by the management relating to any material, financial and commercial transactions where any of the managerial staff has personal interest that may have a potential conflict with the interest of the company at large.

Statements in the Management Discussion and Analysis, describing the Companys objective, projections and estimates, are forward looking statements and progressive within the meaning of applicable security laws and regulations. Actual results may vary from those expressed or implied, depending upon economic conditions, Government Policies and other incidental/related factors. This MD&A provides analysis of the operating performance of the companys two business segments, as well as a discussion of cash flows, the impact of risks and outlook for the business, Additional information about the company. This discussion and analysis is the responsibility of management. The Board of Directors carries out its responsibilities for review of this disclosure principally through its Audit Committee, comprised exclusively of independent directors. The Audit Committee has reviewed and approved this disclosure and it has also been approved by the Board of directors.

The management of the company is presenting herein the overview, opportunities and threats, initiatives by the Company and overall strategy of the company and its outlook for the future. This outlook is based on managements own assessment and it may vary due to future economic and other future developments in the country.