Pursuant to Regulation 34(2)(e) read with Schedule V of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Management Discussion and Analysis Report for the financial year ended March 31, 2026 is presented below.
1. GLOBAL ECONOMIC OVERVIEW
The global economy demonstrated resilience during 2025 despite an environment characterised by geopolitical uncertainties, trade-related disruptions, changing monetary conditions and continuing pressures on global supply chains.
According to the International Monetary Fund Rs.s July 2026 World Economic Outlook Update, global growth is projected at approximately 3.0% in 2026 and 3.4% in 2027. The outlook remains uneven and subject to risks arising from geopolitical developments, energy-price movements, inflation, financial-market conditions and global trade uncertainties.
For businesses, continued volatility in raw-material prices, energy costs, interest rates and supply-chain conditions necessitates prudent financial management and operational flexibility.
2. INDIAN ECONOMIC OVERVIEW
The Indian economy continued to exhibit strong underlying momentum during FY 2025-26, supported by domestic consumption, capital formation, government infrastructure expenditure and growth across the services and manufacturing sectors.
As per the Provisional Estimates released by the Ministry of Statistics and Programme Implementation, India Rs.s real GDP grew by approximately 7.7% during FY 2025-26, while real GDP growth during the fourth quarter of FY 2025-26 was estimated at approximately 7.8%.
India continues to benefit from:
sustained public infrastructure expenditure; growing urbanisation; improving physical and digital infrastructure; resilient domestic consumption; increasing formalisation of the economy; strong investment activity; and continued growth in manufacturing and services.
At the same time, movements in global commodity prices, geopolitical developments, inflation, financing costs and global trade conditions remain important variables for the Indian economy.
3. INDUSTRY STRUCTURE AND DEVELOPMENTS
The Company Rs.s operations are reported under the following two business segments:
A. Sale of Services, comprising primarily works-contract/infrastructure and real-estate related activities; and B. Pharmaceutical Goods.
The two businesses operate in distinct market environments and therefore provide a degree of diversification to the Company Rs.s revenue profile.
4. INFRASTRUCTURE AND REAL ESTATE INDUSTRY
The Indian real-estate and infrastructure sectors continue to benefit from urbanisation, infrastructure development, increasing household incomes, demand for improved housing and commercial spaces and continued public-sector capital expenditure.
The Indian real-estate market has witnessed increased institutional participation and demand across residential, office, warehousing, retail and data-centre assets. India Rs.s office market has also continued to benefit from demand generated by Global Capability Centres, technology companies, financial-services businesses and flexible workspace operators.
Industry estimates indicate continued long-term expansion of the Indian real-estate sector, with infrastructure investment and urbanisation expected to remain significant growth drivers.
The regulatory environment has also become increasingly structured, particularly with the implementation of the Real Estate (Regulation and Development) Act, 2016 ("RERA"), which has enhanced transparency, accountability and consumer protection within the organised real-estate sector.
The Company has activities/projects falling within the real-estate and infrastructure space and continues to evaluate opportunities in accordance with prevailing market conditions and regulatory requirements.
5. PHARMACEUTICAL INDUSTRY
India continues to hold an important position in the global pharmaceutical industry, supported by its manufacturing capability, extensive domestic market, established generic-drug industry and growing healthcare requirements.
India is one of the world Rs.s largest pharmaceutical producers by volume and remains an important global supplier of generic medicines. The domestic pharmaceutical market was estimated at approximately US$60 billion during FY 2025-26, with continued long-term growth expected on account of increasing healthcare access, rising incomes, demographic trends and greater demand for pharmaceutical products.
Pharmaceutical exports also remained resilient during FY 2025-26 and crossed approximatelyUS$31 billion, notwithstanding global pricing and regulatory pressures.
The sector nevertheless remains subject to significant regulatory oversight, pricing pressures, quality requirements, supply-chain risks and competition.
The Company Rs.s pharmaceutical operations are presently primarily in the naturetrading of of pharmaceutical goods. The Statutory Auditors have also specifically identified pharmaceutical trading as one of the Company Rs.s revenue activities during FY 2025-26.
6. SEGMENT-WISE PERFORMANCE
During FY 2025-26, revenue from the Company Rs.s infrastructure/works-contract activities continued to constitute the principal component of operating revenue, while pharmaceutical trading remained a significant and continuing business activity.
The segment-wise performance of the Company is disclosed in the Notes forming part of the Standalone Financial Statements for the financial year ended March 31, 2026 and should be read in conjunction therewith.
| in Lakhs | ||
Particulars |
FY 2025-26 | FY 2024-25 |
Segment Revenue |
||
Sale of Services |
2,565.24 | 2,225.90 |
Pharmaceutical Goods |
654.16 | 623.64 |
Unallocated |
12.18 | |
Total Revenue from Operations |
3,219.40 | 2,861.72 |
Segment Results |
||
Sale of Services |
291.91 | 267.03 |
Pharmaceutical Goods |
(60.42) | 13.17 |
Unallocated |
(117.92) | (234.02) |
Total Segment Results / Profit before Tax |
113.57 | 46.18 |
The Sale of Services segment continued to constitute the principal component of the Company Rs.s operating revenue during FY 2025-26. The Pharmaceutical Goods segment recorded higher revenue during the year, although the segment reported a loss at the segment-result level.
7. OPPORTUNITIES
The Management believes that the principal opportunities available to the Company include:
Infrastructure and Real Estate
continued urbanisation and housing demand; infrastructure-led development; redevelopment opportunities; growing demand in emerging urban and suburban locations; increasing preference for organised and RERA-compliant developers; commercial and residential development opportunities; growing institutionalisation of the real-estate sector; technology-enabled project execution and customer engagement; and increasing emphasis on sustainable and resource-efficient buildings.
Pharmaceutical Goods
increasing domestic healthcare expenditure; growing demand for pharmaceutical and healthcare products; expansion of organised pharmaceutical distribution; wider healthcare penetration in Tier-II and Tier-III markets;
opportunities arising from India Rs.s large pharmaceutical manufacturing base; and potential expansion of product and customer portfolios.
8. THREATS AND CHALLENGES
The Company Rs.s businesses remain exposed to various external and operating challenges, including:
Infrastructure and Real Estate
changes in the regulatory environment; project approval and execution delays; availability and cost of land; fluctuations in construction-material prices; interest-rate and financing risks; slowdown in property demand;
changes in customer preferences; concentration of project/customer exposure;
regulatory compliance under RERA and other applicable laws; and general macroeconomic conditions.
Pharmaceutical Goods
intense competition and pricing pressure; changes in drug and healthcare regulations; product-quality and compliance requirements; supply-chain disruptions; dependence on manufacturers and vendors; working-capital requirements; credit risk associated with customers; and changes in market demand and product mix.
9. STRENGTHS
The Management considers the Company Rs.s principal strengths to include: experience of the promoters and management; diversified presence across infrastructure/real estate and pharmaceutical trading; established business relationships; ability to execute works-contract assignments; customer and vendor network; operating flexibility; focus on statutory and regulatory compliance; established internal-control processes; and ability to evaluate opportunities across multiple business segments.
10. OUTLOOK
The medium- to long-term outlook for India Rs.s infrastructure, real-estate and healthcare sectors remains constructive, supported by domestic economic growth, urbanisation, infrastructure spending and increasing healthcare requirements.
For the infrastructure and real-estate business, demand conditions are expected to remain dependent upon location, affordability, interest rates, availability of financing and timely execution of projects. The Management intends to continue adopting a selective approach towards opportunities with emphasis on project viability, cash flows and regulatory compliance.
For pharmaceutical trading, the Company intends to focus on maintaining commercial relationships, prudent credit management and opportunities for expanding its trading operations in line with market demand.
The Company Rs.s overall strategy will continue to emphasise disciplined growth, working-capital management, regulatory compliance and preservation of financial flexibility.
11. RISKS AND CONCERNS
The Company Rs.s operations are exposed, inter alia, to the following major risks: economic and market risk; project execution risk; regulatory and compliance risk; credit and receivables risk; liquidity and financing risk; interest-rate risk;
input-cost inflation; customer concentration risk; supply-chain risk; competition; technology and cyber-security risk; human-resource risk; and reputation risk.
The Company seeks to manage these risks through periodic management review, internal controls, appropriate contractual arrangements, monitoring of receivables and payables, statutory compliance systems and oversight by the Board and its Committees.
12. RISK MITIGATION FRAMEWORK
The Company follows a structured approach for identification and management of business risks. Responsibility for monitoring specific risks is assigned at the appropriate management level and significant matters are periodically reviewed by the senior management and the Board.
The Company Rs.s risk-management approach includes: periodic review of project and business performance; monitoring of receivables and working capital; evaluation of major contractual commitments; review of statutory and regulatory compliances; internal audit and control reviews; monitoring of liquidity and borrowing positions; and timely corrective action where deviations are identified.
The objective of the framework is to minimise adverse impact on operations while preserving the Company Rs.s ability to pursue viable business opportunities.
13. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has established internal control systems commensurate with the nature, size and complexity of its operations.
The control framework is designed, inter alia, to provide reasonable assurance in relation to: orderly and efficient conduct of business; safeguarding of assets; prevention and detection of frauds and errors; accuracy and completeness of accounting records; authorisation of transactions; statutory and regulatory compliance; and timely preparation of reliable financial information.
The Internal Auditor periodically reviews significant areas of operations and reports its observations to the Audit Committee.
At the Group level, the Statutory Auditors have reported a material weakness relating to the monitoring and assessment of recoverability of certain long-outstanding trade receivables of the subsidiary company. The management is taking steps to strengthen reconciliation, monitoring, recovery follow-up and periodic assessment of such receivables.
14. FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE
During FY 2025-26, the Company Rs.s Standalone Total Income increased to 3,270.00 Lakhs from 2,866.18 Lakhs in FY 2024-25.
The Standalone Profit after Tax increased to 81.52 Lakhs as compared to 30.02 Lakhs in the previous year.
On a consolidated basis, Total Income increased to 3,371.55 Lakhs from 2,870.45 Lakhs, while Consolidated Profit after Tax increased to 60.43 Lakhs from 16.88 Lakhs in FY 2024-25.
The improvement in profitability reflects the operating performance during the year and the absence of the exceptional charge which had affected the previous year Rs.s results.
Detailed financial performance is discussed in the Board Rs.s Report and should be read together with the Audited Financial Statements and Notes thereto.
15. SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS
Pursuant to Schedule V of the SEBI Listing Regulations, details of significant changes, i.e. changes of 25% or more, as compared to the immediately previous financial year in the key financial ratios, together with explanations thereof, are required to be disclosed.
Particulars |
FY 2025- 26 | FY 2024- 25 | % Change | Explanation |
Debtors Turnover Ratio (Times) |
13.43 | 7.57 | 77.37% | The ratio improved mainly due to increase in revenue from operations coupled with better management and realisation of trade receivables during the year. |
Inventory Turnover Ratio (Times) |
7.31 | 5.71 | 28.08% | The ratio improved due to increase in revenue from operations and reduction in the average inventory level during the year. |
Interest Coverage Ratio (Times) Debt-Equity |
2.71 | 1.63 | 65.88% | The ratio improved mainly due to higher earnings before interest and tax during the current year, while finance costs were lower as compared to the previous year. |
Ratio (Times) |
0.67 | 1.11 | (40.05%) | The ratio improved due to reduction in total borrowings and increase in shareholders Rs. equity during the year. |
Operating Profit Margin (%) |
4.24% | 7.88% | (46.21%) | The operating margin declined primarily due to an increase in operating costs during the year notwithstanding growth in revenue from operations. |
Net Profit Margin (%) |
2.53% | 1.05% | 141.38% | The ratio improved due to increase in profit after tax during the year and the absence of the exceptional loss which had impacted the previous financial year. |
16. CHANGE IN RETURN ON NET WORTH
Return on Net Worth increased from 5.42% in FY 2024-25 to 13.41% in FY 2025-26, primarily on account of the increase in Profit after Tax during the year. The Company Rs.s Standalone Profit after Tax increased from 30.02 Lakhs in FY 2024-25 to 81.52 Lakhs in FY 2025-26.
17. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS
Human resources remain an important element of the Company Rs.s ability to execute its business plans.
The Company seeks to provide a professional and equitable working environment and encourages employee responsibility, performance and skill development.
Industrial and employee relations remained cordial during the year under review. Number of permanent employees on the rolls of the Company as at March 31, 2026: 22
18. CAUTIONARY STATEMENT
Statements in this Management Discussion and Analysis Report describing the Company Rs.s objectives, projections, estimates, expectations, plans or predictions may be "forward-looking statements" within the meaning of applicable laws and regulations.
Actual results may differ materially from those expressed or implied due to various factors including economic conditions, changes in government policies and regulations, market conditions, interest rates, commodity prices, availability of finance, customer demand, competition, project execution, regulatory developments and other factors beyond the control of the Company.
The Company does not undertake any obligation to publicly revise or update any forward-looking statement except as may be required under applicable law.
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