Mahendra Realtors & Infrastructure Ltd Management Discussions

The Board of Directors of Mahendra Realtors & Infrastructure Limited (MRIL or the Company) is pleased to present the Management Discussion and Analysis (MDA) for the financial year ended 31 March 2026. This report provides an overview of the Companys operating environment, industry dynamics, business performance, financial review, opportunities, risks, internal control systems, human resources, and future outlook. The discussion should be read in conjunction with the audited financial statements and notes forming part of the Annual Report.

1. Company Overview & Core Strengths

Mahendra Realtors & Infrastructure Limited is an engineering-led organisation with over three decades of experience in executing technically challenging structural rehabilitation and infrastructure projects. The Company has established a reputation for delivering specialized engineering solutions that enhance structural safety, improve durability, and extend the service life of buildings and infrastructure assets.

With a strong technical foundation, experienced engineering professionals, disciplined project execution practices, and customer-focused service delivery, the Company has successfully completed more than 500 projects across residential, commercial, industrial, institutional, and government sectors. Its execution capability extends across India, supported by a team of over 120 professionals comprising employees, engineers, project managers, technical experts, supervisors, and support personnel.

The Companys philosophy

Engineered to Restore. Built to Last. reflects its commitment to engineering excellence, innovation, structural integrity, and long-term value creation for customers and stakeholders.

2. Industry Structure and Developments

The Indian infrastructure and real estate sectors are witnessing extensive capital expenditure driven by central and state public works initiatives, urbanization, and asset modernization. Within this expanding macroeconomic context, specialized engineering sub-verticals such as structural restoration, high-risk rehabilitation, and seismic retrofitting have emerged as critical components for economic asset preservation.

The demand for specialized technical restoration solutions has increased, supported by growing awareness of structural safety, asset preservation and cost-effective rehabilitation compared with complete redevelopment. Aging civic architecture, high urban land costs, and stringent municipal safety regulations have made structural life-cycle extension a high-priority, resilient market segment.

3. Operational & Segment-Wise Review

The Company manages its operations across distinct business verticals using its disciplined project delivery model:

a) Works Contracts: The core driver of business revenue, encompassing structural repairs, waterproofing, retrofitting, and high-risk stabilization of administrative, commercial, and residential concrete structures.

b) Corporate Interiors: High-end turnkey design and workspace installations for major government and corporate clients.

c) Infrastructure Projects: Specialty repair and rehabilitation services for major civic infrastructure, including bridge deck rehabilitation and flyover expansion joint repairs.

d) PPP & BOT: The Company continues to evaluate opportunities in Public-Private Partnerships (PPP) and Build, Operate, Transfer (BOT) infrastructure formats to create long-term value.

e) Waste Management Patented C&D waste management solution that enhances the recycling, and sustainable processing of construction and demolition waste.

4. Financial Performance & Analysis

The financial performance of the Company during FY 2025 26 reflects steady growth in operations supported by prudent financial management and operational discipline.

a) Revenue and Income

Revenue from Operations: Increased to 13,586.31 lakhs during FY 2025 26 from 12,477.18 lakhs in the previous financial year, registering a growth of approximately 8.89%. This growth was primarily driven by improved execution of ongoing projects and continued demand for the Companys specialized engineering services.

Total Income: Including Other Income of 526.38 lakhs, Total Income increased to 14,112.69 lakhs compared with 12,869.25 lakhs in FY 2024 25, reflecting an overall growth of approximately 9.66%. This demonstrates the Companys ability to sustain business growth while maintaining operational stability.

b) Operating Expenses

Contracting and Material Expenses: Increased from 8,719.71 lakhs to 9,180.50 lakhs, broadly in line with the increase in business activity and project execution during the year.

Employee Benefit Expenses: Increased to 1,842.70 lakhs from 1,273.78 lakhs, reflecting key investments in technical manpower and human resources to support business expansion and execution capabilities. The increase was also attributable to strengthening of project execution teams, annual increments and expansion of operational capabilities.

Finance Costs & Depreciation: Finance Costs remained largely stable at 124.09 lakhs compared with 118.47 lakhs during the previous year, reflecting effective financial management. Depreciation and Amortization Expenses at 30.31 lakhs owing to additions in property, plant, and equipment during the year compared with 23.49 lakhs during the previous year.

c) Profitability & EBITDA Performance

Profit Before Tax (PBT): Increased to 2,350.08 lakhs from 2,047.93 lakhs, recording a growth of approximately 14.75% as a result of efficient project execution and disciplined cost management.

Profit After Tax (PAT) : Increased to 1,774.61 lakhs from 1,486.63 lakhs, representing a growth of approximately 19.37% over the previous financial year.

EBITDA: Increased to approximately 2,504.48 lakhs during FY 2025 26 compared with 2,189.89 lakhs in the previous year, reflecting improved operational efficiency. EBITDA margin improved from 17.55% to 18.43% during the year.

5. Opportunities, Risks, and Concerns Opportunities:

Diversified Public & Private Client Base: Registered vendor status with government bodies, municipal corporations, and public sector undertakings, complemented by a growing portfolio of private corporate clients.

Asset Life-Extension Focus: Rising industry focus on reducing carbon footprints favors structural rehabilitation over demolition. Restoring existing structures allows MRIL to participate in the growing green building and asset life-extension market.

Proven Track Record: High-quality execution of complex civil engineering projects acts as a robust reference point and entry barrier for competitors.

Government Infrastructure & Urban Development Spending: Continued investment by central and state governments in infrastructure development, urban renewal, transportation networks and public asset modernization is expected to create opportunities for specialized engineering companies. The Companys experience in executing rehabilitation and repair projects positions it to participate in such growth opportunities.

Risks & Mitigation:

Working Capital Cycle: Infrastructure projects are inherently capital-intensive. Delayed public sector billing timelines and retention monies can stretch working capital cycles. The Company mitigates this risk through strict cash flow monitoring, selective project bidding, efficient working capital management and utilisation of IPO proceeds towards the objects stated in the offer document.

Market Volatility: Since listing on the NSE SME platform, the Companys equity shares have faced typical short-term market volatility. Management remains focused on operational execution and long-term financial performance rather than short-term price movements.

Execution Risk: Delay in project execution due to factors beyond the Companys control, including availability of resources, weather conditions, approvals and client-side dependencies, may impact timelines. The Company mitigates these risks through project planning and monitoring mechanisms.

Regulatory and Compliance Risk: The Companys operations are subject to various statutory and regulatory requirements relating to construction activities, labour laws, environmental regulations and contractual obligations. Any changes in regulatory requirements or delays in approvals may impact project execution. The Company mitigates such risks through continuous monitoring and compliance systems.

6. Internal Controls & Human Resources

The Company has established internal control systems commensurate with the size and complexity of its operations, supported by project monitoring mechanisms, periodic reviews and financial controls.

Supply Chain Resilience: To mitigate raw material price fluctuations, the Company has streamlined its procurement via direct tie-ups with primary manufacturers, ensuring price stability and unhindered project timelines.

Human Capital & Safety: Supported by its specialized team of structural engineers and project managers, the Company maintains strict on-site safety protocols and ongoing technical training. Industrial relations remained completely harmonious during the year under review.

7. Outlook

The Company remains optimistic about the growth prospects of the structural rehabilitation and infrastructure maintenance sector. Increasing urbanization, aging infrastructure assets, and emphasis on sustainable redevelopment are expected to provide long-term opportunities. The Company will continue to focus on selective project execution, operational efficiency, technological capabilities and sustainable growth.

8. Cautionary Statement

Certain statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may constitute forward-looking statements within the meaning of applicable securities laws and regulations. These statements are based on current expectations and assumptions and are subject to risks and uncertainties. Actual results may differ materially from those expressed or implied due to various factors, including economic conditions, regulatory changes, market developments and other risks. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements based on subsequent developments.

For and on behalf of the Board of Directors
MAHENDRA REALTORS & INFRASTRUCTURE LIMITED
(Formerly Known as Mahendra Realtors & Infrastructure Private Limited)

Sd/-
HEMANSHU SHAH
CHAIRMAN AND MANAGING DIRECTOR
DIN: 01473263

DATE:18.08.2026
PLACE: MUMBAI