M & B Engineering Ltd Management Discussions

ECONOMIC OVERVIEW

Global economy

The global economy maintained a steady pace of growth during 2024 and 2025, expanding by approximately 3.4%. Economic activity was supported by sustained demand for services, investments in emerging technologies such as arti cial intelligence, and generally favourable nancial conditions across major economies.

The outlook became more uncertain entering 2026 as

geopolitical tensions and supply chain disruptions affected

Global Growth Projections (%) business sentiment and economic activity across several regions. Developments in the Middle East during early 2026 added to concerns around energy markets, trade ows and in ation.

According to the International Monetary Fund (IMF) April 2026 outlook, global GDP growth is projected to moderate to 3.1% in 2026 before improving marginally to 3.2% in 2027. In ation, which had shown signs of easing during 2024 and 2025, is expected to rise temporarily to 4.4% in 2026 due to higher energy and food prices before moderating again in 2027.

Region	2024	2025	2026 E	2027 E
World	3.4	3.4	3.1	3.2
Advanced Economies	1.7 1.8	1.9	1.8	1.7
EM & Developing Economies	4.3 4.4	4.4	3.9	4.2
Middle East & Central Asia	3.2	3.6	1.9	4.6

Global Outlook

While global growth remains positive, performance continues to vary across regions. Advanced economies are experiencing moderate growth, while emerging markets are navigating a more challenging environment characterised by higher nancing costs, supply-side pressures and external uncertainties. Rising government debt levels, trade restrictions and changing geopolitical alignments continue to in uence the global economic landscape.

At the same time, investments in technology and digital infrastructure are expected to remain important contributors to productivity and long-term economic expansion. Overall, the global economy continues to grow, although the operating

Growth of the Indian economy	FY23	FY24	FY25	FY26 E
Real GDP Growth (%)	7.2	7.2	7.1	7.6

Sector Performance

While the services sector remains the largest contributor to the economy, Manufacturing and construction have also recorded strong growth and are emerging as increasingly important contributors to economic activity, thanks to several initiatives and incentives provided by the Government to boost Manufacturing under the "Atma Nirbhar Bharat" vision. The sectors identi ed as Thrust Sectors include Electronic Manufacturing Service (EMS), Semi Conductors, Engineering, Automobiles, Heavy Industries, Textiles, Pharma, Renewable energy, Logistics etc. Agriculture continues to provide stability, although growth in the sector remains relatively moderate compared with other segments of the economy.

On the demand side, growth has been supported by healthy consumer spending, rising investment activity and continued capital formation. Household savings remain supportive of investment growth, while exports have shown improvement despite imports remaining elevated due to strong domestic demand.

Indias economic expansion is being supported by a combination of consumption, investment and infrastructure development. Continued investments in physical infrastructure, the expansion of digital and nancial systems, and rising participation across formal sectors of the economy have strengthened the countrys growth foundations. The economy has also become more diversi ed, with multiple sectors contributing to growth rather than dependence on any single driver.

Indian Outlook

Indias medium-term outlook remains favourable. Growth is expected to bene t from continued public investment in infrastructure, ongoing digital transformation, manufacturing expansion, urbanisation and the advantages of a young workforce.

Consumption and investment are expected to remain the principal drivers of economic activity, while services and industry continue to support broader economic growth. At the same time, the economy remains exposed to risks arising from a potential environment remains in uenced by geopolitical developments,

commodity price movements and nancial market volatility.

Source: IMF April 2026 Report

Indian economy

India continues to be among the fastest-growing major economies globally, supported by strong domestic demand, rising investments and sustained activity across both manufacturing and services sectors.

Indias real GDP growth is estimated at 7.6% in FY2025-26,

compared with 7.1% in FY2024-25, extending a period of growth

above 7% over the past several years. Nominal GDP is estimated at approximately Rs.345 Lacs crore in FY2025-26, re ecting healthy economic activity alongside moderate in ation.

slowdown in global growth, uctuations in commodity prices and

external shocks that may affect trade and capital ows.

Domestic priorities such as in ation management, employment generation and productivity improvement will remain important to sustaining long-term growth. Nevertheless, Indias strong domestic fundamentals and broad-based economic expansion position it to remain a signi cant contributor to global economic growth in the years ahead.

Source: MOSPL Feb 2026 Report

Pre-Engineered Buildings (PEB) Industry Overview

Global Industry: Evolution and Market Size

The global pre-engineered buildings (PEB) industry has expanded

steadily over the past decade as construction activity increasingly adopts engineered, factory-manufactured building solutions that offer greater speed, cost ef ciency and design exibility than conventional methods.

The market is estimated to have grown from approximately US$15 17 billion in 2019 to US$20 22 billion in 2024, re ecting a CAGR of around 7%. Industry estimates indicate that the market could reach US$32 35 billion by 2029, translating into a CAGR of approximately 9 10% between 2024 and 2029.

The growing acceptance of steel-based construction systems across industrial, infrastructure and commercial applications has broadened the addressable market for PEB solutions. Businesses and project developers are increasingly prioritising shorter construction timelines, predictable project execution and ef cient utilisation of resources, all of which have contributed to the industrys growth.

End Market Composition

The global PEB market serves a diverse range of end-use sectors and is broadly categorised into infrastructure, buildings and industrial applications.

Infrastructure remains the largest segment, accounting for approximately 40% of the market, followed by buildings at around 37% and industrial applications at approximately 23%.

Demand within the infrastructure segment is supported by investments in logistics parks, airports, transportation networks, rail systems and large-scale urban development projects. The buildings segment has expanded as commercial, institutional and mixed-use developments increasingly seek construction solutions that combine exibility with faster project completion. Industrial demand continues to originate from manufacturing facilities, engineering projects, processing plants and industrial warehouses.

Infrastructure is expected to remain the largest contributor to industry demand through 2029, supported by ongoing investments in logistics infrastructure, transportation assets and digital infrastructure.

Indian Pre-Engineered Buildings (PEB) Industry Overview

The Indian Pre-Engineered Buildings (PEB) industry has witnessed

steady and sustained growth over recent years, driven by increasing demand from industrial, infrastructure, logistics, and

commercial sectors. The market expanded signi cantly from approximately Rs.130 billion in FY2019 to around Rs.210 billion by FY2025, re ecting a compound annual growth rate (CAGR) of

about 8.3%. This upward trajectory is expected to continue, with

industry estimates projecting the market size to reach between

Rs.330 billion and Rs.345 billion by FY2030, implying a stronger CAGR in the range of 9.5% to 10.5%. Supporting this outlook, Overall, the

PEB sector in India is poised for accelerated expansion, underpinned by structural growth drivers such as rapid urbanization, infrastructure development, and shift toward cost-effective and faster construction solutions in the Industrial segment.

Industry Penetration

Indias pre-engineered buildings (PEB) industry continues to witness steady growth, although penetration levels remain relatively low, highlighting a signi cant long-term growth opportunity. As of FY2025, PEB penetration in the overall construction sector is estimated at 3-5% and is expected to increase to 5-7% by FY2030, driven by rising awareness, faster project execution, cost ef ciencies, and growing acceptance of steel-based construction solutions.

Penetration levels vary considerably across end-use segments. The industrial and warehousing segment is the most developed, with PEB penetration of approximately 53-55%, supported by strong demand from manufacturing, logistics, and e-commerce sectors. Infrastructure applications, including airports, metro rail projects, logistics parks, and transit hubs, have achieved moderate penetration of around 6-8%. In contrast, the buildings segment encompassing commercial, and institutional developments remains largely underpenetrated at just 0-1%, representing the largest untapped opportunity for the industry.

Encouragingly, early adoption trends are now emerging in high-rise commercial buildings, particularly across select metro cities. As awareness increases and advancements in design capabilities, engineering standards, and construction technologies continue to evolve, structural steel and PEB solutions are expected to gain wider acceptance in the segment. This transition could unlock substantial growth potential, positioning high-rise construction as the next frontier for the PEB and structural steel industry in India.

Looking ahead, in near term the infrastructure segment is expected to grow at a faster pace compared to others, gradually increasing its share within the overall industry. This acceleration comes on the back of rapid expansion in warehousing, the rise of data centres, the development of modern logistics parks, and ongoing investments in urban infrastructure. These trends are not only reshaping the demand landscape but also reinforcing the role of PEBs as a preferred construction solution in time-sensitive and large-scale infrastructure projects.

Market Structure

The Indian Pre-Engineered Buildings (PEB) industry is characterised by a highly fragmented market structure, with a signi cant presence of both organised and unorganised players. As of FY2025, organised companies account for approximately 42-47% of the market share, while the unorganised segment continues to dominate with around 53-58%. This fragmentation re ects the historical prevalence of smaller, regional fabricators and contractors catering to localised demand. However, the industry is gradually undergoing a structural shift toward greater formalisation. By FY2030, the share of organised players is expected to increase to about 47-52%, indicating a steady consolidation trend.

This transition is largely driven by evolving customer preferences and project requirements. Demand is increasingly shifting toward large, organised players due to their superior execution capabilities, ability to manage large and complex projects, and proven track record in maintaining reliability and stringent timelines. As infrastructure projects scale up and industrial clients demand higher quality and ef ciency, organised players are becoming the preferred choice, positioning them to capture a larger portion of future growth in the PEB sector.

Key Growth Drivers

1. Industrial Capex Supercycle: India is entering a sustained multi-year private capital expenditure upcycle, where improving business con dence and rising capacity utilisation levels of around 75-80% are prompting companies to undertake fresh investments, thereby signi cantly boosting demand for pre-engineered building solutions.

2. Massive Infrastructure Investment: The governments planned infrastructure spending of approximately Rs.50-55 trillion between FY2026 and FY2030 is creating a robust and

long-term demand pipeline, particularly for logistics, transportation networks, and large-scale public infrastructure projects that favor faster construction methods like PEBs.

3. Manufacturing Expansion (Make in India drive, PLI & China+1): Global supply chain diversi cation strategies, coupled with Indias Make in India drive, Production-Linked Incentive (PLI) schemes, are accelerating investments in domestic manufacturing, especially in high-growth sectors such as semiconductors, electronics, and renewable energy, all of which require scalable and time-ef cient construction.

4. Warehousing & Logistics Boom: Signi cant investments of around Rs.460-500 billion in the warehousing and logistics sector are driving the development of modern, organised

storage infrastructure and third-party logistics (3PL) facilities, where PEBs play a crucial role due to their cost ef ciency and speed of execution.

5. Data Centre Explosion: The data centre segment is emerging as a high-value growth area, with capacity expanding at an estimated CAGR of 20% from FY2019 to FY2024 and expected to reach about 4-5 GW by FY2030, leading to increasing demand for specialized, large-scale PEB structures.

6. Renewable Energy Ecosystem: Indias ambitious target of achieving 500 GW of renewable energy capacity is generating substantial demand for supporting infrastructure, including manufacturing plants, storage facilities, and related ecosystem development, all of which create opportunities for PEB adoption.

7. Urbanisation and Building Segment Opportunity: Rapid urbanisation combined with extremely low penetration of PEBs in the buildings segment highlights a signi cant untapped market, offering a multi-decade growth opportunity as developers increasingly adopt ef cient and exible construction solutions.

Advantages Driving Adoption (Validated + Strengthened)

The rising adoption of pre-engineered buildings (PEBs) in India is being driven by a combination of clear structural and economic advantages over traditional construction methods. One of the most signi cant bene ts is the speed of execution, with PEB projects typically completed 30-50% faster, enabling quicker project turnaround. This is complemented by a compelling cost advantage of approximately 15-35% on a lifecycle basis, making PEBs a highly attractive option for cost-conscious developers and industrial users. Additionally, these structures require around 25% lower manpower, helping address labour constraints and improving overall project ef ciency. PEBs also offer superior scalability and exibility, allowing easy expansion or modi cation as business needs evolve.

A critical and often underappreciated advantage is the impact of faster construction on project economics. By reducing build time, PEBs enable earlier commencement of operations, which translates into faster revenue generation for clients. This time-to-market bene t can signi cantly enhance returns on investment, particularly in sectors such as warehousing, manufacturing, and data centres, where speed and ef ciency are crucial competitive factors. Overall, these advantages are playing a pivotal role in accelerating the shift toward PEB solutions across industries.

Key Challenges

Steel price volatility (primary risk driver)

Fragmented / unorganized competition

Execution and working capital challenges

Dependence on capex cycle

Industry Outlook

The Indian PEB industry is entering a structural, multi-year growth phase, supported by a strong con uence of macroeconomic and sectoral tailwinds. The revival of the industrial capex cycle is driving fresh investments across manufacturing, while large-scale infrastructure development and rapid expansion of logistics networks are creating sustained demand for fast, ef cient construction solutions. At the same time, the increasing acceptance of prefabricated construction methods is accelerating the shift toward PEBs, particularly as projects become more complex and time-sensitive, requiring higher levels of engineering precision and execution capability.

A key structural transformation emerging within the industry is the development of a "winner-takes-more" dynamic. Larger, organised players are steadily gaining market share as clients increasingly prefer partners with proven track records, strong engineering expertise, and the ability to execute large and complex projects reliably. This shift is also raising entry barriers, as new or smaller players may nd it dif cult to compete without established capabilities, scale, and credibility. As a result, the industry is gradually moving toward consolidation, with leading rms well-positioned to capture disproportionate gains in the coming growth cycle.

Conclusion

The Indian Pre-Engineered Buildings (PEB) Industry is undergoing a signi cant structural transformation, driven by a combination of powerful long-term trends. At the same time, there is a rapid shift toward off-site and pre engineered construction technologies, as developers and businesses increasingly prioritise speed, cost ef ciency, and quality. This transition is further reinforced by a growing emphasis on sustainability and resource ef ciency, where PEBs offer clear advantages through reduced material waste and optimized energy use.

Within this global context, India stands out as a particularly attractive and high-growth market due to its relatively low penetration levels and strong underlying fundamentals. The country bene ts from favourable macroeconomic tailwinds, including urbanisation, industrial expansion, and government-led infrastructure investments, all of which contribute to a large and expanding addressable opportunity. Additionally, the industry is witnessing rapid formalisation, with organised players steadily gaining prominence over smaller, unorganised participants.

This evolving landscape presents a compelling long-term opportunity for established players such as M&B Engineering, which can leverage their execution capabilities, engineering strength, export potential, and scale advantages to capture disproportionate growth and strengthen their market position in both domestic and international markets.

Company Overview

M&B Engineering Limited ("MBEL") is a well-established, engineering-focused player in the Indian Pre-Engineered Buildings (PEB) industry, offering integrated solutions across design, engineering, manufacturing, and project execution. The Company ranks among the leading organised players with an estimated market share of 5% and installed manufacturing capacity of approximately 103,800 MTPA across its facilities in Sanand (Gujarat) and Cheyyar (Tamil Nadu).

MBELs business model is supported by a diversi ed product portfolio, strong execution capabilities, and a growing presence in both domestic and international markets, positioning it to capitalize on the structural growth in the PEB industry.

Business Segments

Phenix - Pre-Engineered Buildings

The Phenix division constitutes the core of MBELs operations, focusing on design-led manufacturing and execution of preengineered buildings and complex structural steel solutions.

Phenix is the only PEB manufacturer in India to hold American Institute of Steel Construction (AISC) certi cation for both its manufacturing facilities, at Sanand in Gujarat and Cheyyar in Tamil Nadu. The AISC certi cation, while not mandatory for exports to the United States, is a widely recognized quali cation that strengthens customer con dence and market access. The Sanand facility additionally holds Canadian Welding Bureau (CWB) certi cation, which is obligatory for exports to Canada. Cheyyar received its AISC certi cation in August 2026, positioning the facility to serve customers on the U.S. West Coast, where the Paci c shipping route offers a distinct logistical advantage.

Revenue contribution (FY26): 78% (Rs.985 crore)

Applications: Industrial plants, warehouses, logistics parks, infrastructure projects

Strong Export Focus: MBEL also enjoys a decent Market presence in the North American Markets, and is also Exporting PEBs to African countries

Phenix is the primary growth driver, bene ting from rising demand across industrial, logistics, and infrastructure segments, supported by strong in-house engineering capabilities and global project execution expertise.

Pro ex - Self-Supported Roo ng Solutions

The Pro ex division operates in the niche segment of self-supported steel roo ng systems, offering technologically advanced roo ng solutions, offering advantages like better aesthetics due to semi circular shape, Wider spans, additional storage space due to absence of any support structure like trusses, leak proof, Bird proof, longer life and Maintenance free.

Revenue contribution (FY26): 22% (Rs.275 crore)

Installed capacity: 2.1 million sq. m. per annum (as on date of this report)

Execution capability: 17 mobile manufacturing units (as on date of this report) enabling pan-India deployment

MBEL is the largest player in India by revenue in self-supported roo ng solutions, with strong leadership in railway, industrial, and infrastructure applications.

Margin Pro le

The Company reported a EBITDA margin of approximately 12.5% and a PAT margin of around 7.4% in FY2026, re ecting a balanced and resilient pro tability pro le. The Companys growing exports of PEBs particularly in developed markets such as North America further supports margin expansion due to better pricing. Moreover, increasing project complexity and a shift toward larger, design-intensive orders with improved pricing and in-house execution capabilities, is enabling the Company to sustain and gradually improve its margin pro le over time.

Operational Performance

Order Book and Order In ows

Order Book (FY26): Rs.1,083 crore

Order In ow (FY26): Rs.1,539 crore (+28% YoY)

This re ects Strong demand momentum, Healthy bid conversion

rates, Increasing order size and project complexity

Exports Performance

FY26 Export Revenue: Rs.165.62 crore

Key markets: USA, Canada, Africa

Exports are a key growth driver due to Higher margins, Larger

project sizes, Technological differentiation

Capacity and Operations

The Company has built a strong operational foundation supported by robust manufacturing capacities and a scalable workforce. M&B Engineering operates with a PEB installed capacity of over 103,800 metric tonnes per annum (MTPA), between its two Plants enabling it to address large and complex structural steel project requirements across industrial, infrastructure, and logistics segments.

MBEL is in the process of enhancing its PEB capacity in Sanand by 20000 TPA, targeted to be implemented by October 2026, and at Cheyyar facility by 20000 TPA targeted to be implemented by October 2027, so that the total PEB Capacity will increase to 143,800 MTPA in FY 2028. The Company is also in the process of enhancing its heavy Structural Steel capacity by 10,000 TPA through introduction of German automated equipments to be implemented by Q1 of FY28 which will cater to the needs of data centers, high rise buildings, Bridge Girders and other heavy Steel Structurals.

The Company is also in the process of adding 2 mobile equipments which will enhance its self-supported roo ng capacity to approximately 2.1 million square metres annually and implemented in rst quarter of FY27.

The Sanand Facility is also certi ed by the Americal Institute of Steel Construction( AISC), USA and the Canadian Welding Bureau( CWB), Canada. MBEL is also in the process of obtaining AISC Certi cation for the Cheyyar facility.

The Companys operations are further strengthened by a workforce of around 1,631 employees, providing a combination of technical expertise, engineering capabilities, and execution strength. This integrated operational setup allows MBEL to ef ciently manage large-scale projects, optimize execution timelines, and maintain consistent quality standards while scaling its business in line with growing demand.

Geographical Presence

? Have exported to more than 22 countries globally

? Balanced presence across domestic and international markets, especially in USA & Canada

? Strong export footprint supported by certi cations and global execution capability

Customer Base and Industry Diversi cation

2,000+ customer groups served

Repeat customers: 54% of FY26 revenues

Outlook

MBEL is well-positioned to bene t from multiple structural growth drivers shaping the pre-engineered buildings industry. The ongoing revival of the industrial capex cycle is expected to drive fresh investments in manufacturing facilities, directly supporting demand for PEB solutions. In parallel, increasing government and private sector investments in infrastructure and logistics, particularly in warehousing, transportation, and industrial corridors are creating a strong pipeline of opportunities for the Company. Additionally, the growing acceptance of prefabricated and off-site construction technologies, driven by the need for faster execution, cost ef ciency, and scalability, further strengthens the long-term demand outlook for MBELs offerings. Backed by a balanced revenue mix across PEB and roo ng solutions, strong order in ows, a growing export footprint, and a steadily improving margin pro le, the Company is well-positioned to deliver sustained growth and create long-term value for its stakeholders.

Financial and Operational Performance:

Consolidated Financial Overview:

Particulars (Rs. Crore)	FY26	FY25	Chang YoY (%)
Revenue from Operations	1,260	989	27.4%
EBITDA	157	135	16.7%
EBITDA Margin	12.5%	13.6%
PAT	93	77	20.2%
PAT Margin	7.4%	7.8%

Key nancial ratios, along with detailed explanations therefore:

Particulars	FY26	FY25	Change (%)	Reason for Change
Debtors Turnover	5.84	5.97	-2.2%	Signi cant increase of 16% in revenue during last quarter
Inventory Turnover	3.75	3.82	-1.6%	Due to price increase in the later part of the year, inventory value increase lead to slightly lower turnover ratio.
Interest Coverage Ratio	8.09	6.12	+32.2%	Savings in Interest cost by 12.7% coupled with increase in Earnings resulted into better Interest cover ratio
Current Ratio	1.67	1.39	+20.1%	Signi cant growth in Cash bank balance. Increase in Receivables and inventories, coupled with negligible growth in total current liabilities improved current ratio.
Debt-Equity Ratio	0.12	0.61	+48.7%	Repayment of Term loan, signi cant reduction of Short term borrowings coupled with increase in shareholders equity due to IPO and retained pro ts during the year resulted into better Debt Equity Ratio.
EBITDA (%)	12.5%	13.6%	-1.1%	Increase in Steel Price in last quarter coupled with substantial Unrealised loss on Account of Forex post war position.
Net Pro t Margin (%)	7.4%	7.8%	-0.4%	Increase in Steel Price in last quarter coupled with substantial Unrealised loss on Account of Forex post war position.
Return on Net Worth (%)	19.2%	28.6%	-9.3%	Increase in shareholders equity due to IPO

Notes: a) Above ratios were based on the Consolidated Financial Statements of the Company b) De nitions of the ratios: 1. Debtors turnover: Average trade receivable by Sales Revenue for the year. 2. Inventory turnover: Average inventory by Sales Revenue for the year.

3. Interest coverage ratio: Total EBIT by nance cost for the year.

4. Current ratio: All types of Financial and Non-Financial Current assets excluding FD from unutilised IPO proceeds by all types of

Financial and Non-Financial current liabilities.

5. Debt equity ratio: Current and Non-current Borrowing by total equity at the end of the year. 6. EBITDA Margin: EBIDTA by Sales Revenue for the year. 7. Net pro t margin: Pro t for the year by Sales Revenue for the year.

8. Return on net worth: Pro t for the year by average Total Equity.

Opportunity and Threats

Opportunities:

Growing acceptance of product in the construction sector due to faster project execution time and reduced dependence on onsite labour

Availability of improved and advanced machinery and technologies improves acceptance of the product resulting into increase in demand

Rise in government-led innovative and policies like PLI scheme leading to increase in demand Threats:

As Steel is the major raw material which is a good conductor of heat, it reduces the thermal comfort of the building and the overall re resistance of the building.

Presence of unorganized segment may result in price pressure.

Limited suppliers of high-grade steel, makes the industry susceptible to supply chain issues.

Risks, Concerns and Mitigations

The Company operates in a dynamic business environment and is exposed to various risks that could affect its operational and nancial performance. MBEL continuously evaluates these risks and adopts appropriate mitigation measures to minimize their impact while ensuring sustainable growth and long-term value creation. The key risks and mitigation strategies are outlined below.

Risk	Description	Mitigation Strategy
Industry Risk	The Companys performance is in uenced by overall economic conditions, industrial capex cycles, infrastructure spending, and government policies. Economic slowdowns, reduced investments, regulatory changes, or project delays may impact order in ows and execution schedules.	The Company bene ts from a diversi ed customer base across industrial, infrastructure, warehousing, and commercial segments. The short execution cycle of PEB projects enables faster order conversion and revenue realization, reducing exposure to long- term project risks. Continuous focus on market diversi cation and customer engagement further mitigates industry-related uncertainties.
Geopolitical Risk	Changes in global geopolitical conditions, trade policies, regional con icts, supply chain disruptions, or economic sanctions in export markets may impact demand, project execution, logistics, and international business operations.	The Company maintains a diversi ed geographical presence and customer portfolio across domestic and international markets. Long-term customer relationships, prudent contract structuring, and continuous monitoring of global developments help mitigate the impact of geopolitical uncertainties on operations and exports.
Engineering & Design Risk	The pre-engineered buildings business requires precise engineering, structural design accuracy, and adherence to evolving industry standards. Design errors or technical de ciencies could impact project timelines, quality, customer satisfaction, and business reputation.	The Company is supported by one of the industrys strongest engineering capabilities, with a team of over 100 quali ed engineers and design professionals. Robust review mechanisms, standardized design processes, advanced engineering software, and rigorous quality control practices help ensure design accuracy, structural integrity, and execution excellence.
Raw Material Price Risk	Steel is the primary raw material used in the Companys operations. Volatility in steel prices may affect project pro tability and margins, particularly for xed-price contracts.	The Company follows a disciplined procurement strategy and typically secures a signi cant portion of steel requirements upon order booking, covering nearly 80% of material needs. This helps minimize exposure to raw material price uctuations while enhancing cost visibility and margin protection.
Foreign Exchange Risk	The Company is exposed to foreign currency uctuations arising from exports, imports, and other cross-border transactions. Volatility in exchange rates could impact pro tability and cash ows.	The Company manages foreign exchange exposure through a combination of natural hedging between export and import transactions and a prudent hedging policy. Regular monitoring of currency movements and appropriate risk management measures help limit the impact of exchange rate uctuations on business performance.

Human Resource

At MBEL, our people remain the foundation of our sustained growth and operational excellence. We are committed to fostering a performance-driven and people-centric culture that encourages accountability, collaboration, innovation, and continuous learning. By creating an inclusive and empowering work environment, we enable our employees to realize their full potential while contributing meaningfully to the Companys long-term success.

The Company is supported by a highly experienced workforce, including one of the industrys strongest engineering and design teams, which serves as a key differentiator in delivering complex, customized, and value-engineered solutions. Our capabilities across Engineering, Sales, Manufacturing, Project Execution, and Corporate Functions continue to strengthen our market leadership and execution excellence. Through structured training programs, technical upskilling initiatives, leadership development interventions, and talent management practices, we remain focused on building a future-ready organization equipped to address evolving customer requirements and industry opportunities.

As part of our ongoing digital transformation journey, the Company has strengthened its Human Resources function through the implementation of integrated technology platforms, enabling greater ef ciency, transparency, and employee engagement. The digitization of key HR processes, including attendance and leave management, payroll administration, performance evaluation, and employee services, has improved process effectiveness, enhanced governance, supported data-driven decision-making, and elevated the overall employee experience.

The Company continues to maintain harmonious and constructive industrial relations across all its manufacturing facilities and of ces. Built on a foundation of trust, transparency, mutual respect, and open communication, these strong employee relations have played an important role in ensuring operational continuity, workplace stability, and sustained productivity.

Our continued focus on talent development, employee well-being, engineering excellence, workforce engagement, and digital enablement has helped build a motivated, agile, and high-performing workforce. This strong human capital foundation will remain instrumental in driving innovation, operational excellence, customer satisfaction, and sustainable long-term growth while reinforcing M&Bs leadership position in the pre-engineered buildings and steel structures industry.

Internal Control Systems

The Company has established an adequate and effective internal control framework commensurate with the size and nature of its operations. Well-de ned policies, procedures, and governance mechanisms support ef cient business operations, safeguard assets, ensure reliability of nancial reporting, and promote compliance with applicable laws and regulations. These systems are regularly reviewed and strengthened to align with the Companys evolving business requirements, enabling effective risk management, operational ef ciency, and sound corporate governance.

Health, Safety and Environment (HSE)

The Company is committed to complying with all applicable laws and regulations relating to environmental protection, occupational health, and workplace safety. Its operations are governed by various environmental and safety regulations covering areas such as air emissions, wastewater discharge, handling, storage and disposal of hazardous substances and waste, site remediation, natural resource conservation, and employee health and safety.

The Company believes that workplace incidents and occupational health risks can be minimized through systematic risk identi cation, assessment, and control measures, supported by regular training and awareness programs for employees and management. To reinforce this commitment, the Company has implemented a comprehensive Health, Safety and Environment (HSE) Policy aimed at ensuring compliance with statutory requirements, promoting resource conservation, preventing pollution, and safeguarding the health and well-being of its workforce. Through continuous monitoring, medical check-ups, safety initiatives, and preventive measures, the Company strives to provide a safe and healthy work environment and remains committed to achieving its goal of sustainable zero-accident operations.

Cautionary statement

The Statement in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates, expectations or predictions may be forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ substantially or materially from those expressed or implied. Important developments that could affect the Companys operations include demand supply conditions, changes in government and international regulations, tax regimes, economic developments within and outside India and other factors such as litigation and labour relations.