Man Infraconstruction Ltd Management Discussions

Management Discussion & Analysis Global Economic Overview:

The global economy demonstrated resilience through much of 2025 supported by technology-led investments, easing inflation across several economies and relatively accommodative financial conditions.

Entering 2026, heightened geopolitical developments and their impact on energy markets, inflation expectations and financial conditions have moderated the global outlook. According to the International Monetary Fund (IMF), global growth is projected at 3.1% in 2026 and 3.2% in 2027, while the World Bank expects global growth to remain below historical averages amid continued uncertainty and softer global demand.

Source:

1. International Monetary Fund (IMF), World Economic Outlook - Global Economy in the Shadow of War, April 2026

2. World Bank, Global Economic Prospects, June 2026

Indian Economic Overview:

India remained the fastest-growing major economy in FY26 despite elevated global trade tensions and external uncertainties. GDP growth accelerated to 7.6% in FY26 from 7.1% in FY25¹, supported by strong domestic consumption, sustained investment activity and continued momentum across manufacturing and services.

Private consumption remained a key growth driver and increased by 7.7% YoYi, supported by moderating inflation, tax relief measures and GST rationalisation initiatives that supported household spending. Inflation remained below the RBIs target for most of FY25, creating room for monetary easing, with the RBI reducing the policy rate by a cumulative 125 basis points during 2025² to support economic activity. Growth momentum was further supported by continued public infrastructure spending and private investments

However, geopolitical developments in the Middle East and the resulting increase in energy prices, along with global trade uncertainties, continue to pose near-term risks. Reflecting these external headwinds, Indias growth is projected to moderate to 6.6% in FY27i, while still remaining among the highest globally.

Source:

1. World Bank, India Development Update, April 2026

2. Reserve Bank of India, Monetary Policy Statements and Monetary Policy Committee (MPC) Resolutions, FY26

Infrastructure And Ports Opportunity

Infrastructure remained central to Indias growth strategy in FY26. The Union Budget for 2026-27 raised public capital expenditure to Rs.12.2 lakh crore (up ~11.5% year-on-year).

Within this landscape, Ports represent one of the most compelling opportunities of the decade. According to the Ministry of Ports, Shipping & Waterways (MoPSW), the maritime sector handles ~95% of Indias trade by volume. Under the Maritime Amrit Kaal Vision 2047 the Government aims to quadruple capacity to 10,000 MTPA by 2047 (from ~2,762 MTPA), backed by nearly Rs.80 lakh crore of investment.

One of the new mega-ports identified under this Vision, and the opportunity closest to home, is the Rs.75,000+ crore Vadhavan Port in Palghar·~140 km north of Mumbai·which broke ground in August 2024 and, on completion, is expected to be one of the worlds largest container ports.i

With Vadhavan port within the MICL Groups home market with a rich heritage in port EPC, this infrastructure cycle is one to which the Groups capabilities are directly aligned - positioning the company to participate meaningfully in its construction activities.

Source:

1. Vadhavan Port project cost and timeline as disclosed by Jawaharlal Nehru Port Authority (JNPA), MoPSW

Residential Real Estate Overview:

Indias residential real estate market continued to demonstrate underlying strength and maturity through the year. Demand remained firmly anchored in the premium to high end of the market. The luxury and ultra-luxury segment (homes priced Rs.2.5 crore and above), near-negligible in 2021, now commands close to a fifth of the market · a structural rerating of demand toward the high end (ANAROCK, Jan 2026).

The Mumbai Metropolitan Region (MMR) remains the countrys largest and deepest residential market and the clear epicentre of luxury and ultra-luxury demand, consistently leading the top cities in residential sales.

Sustained infrastructure investment, with the Coastal Road and an expanding Metro network strengthening connectivity across the MMRs western and island-city corridors, continued affordability supported by the years repo rate cut, and rising affluence among the citys enterprise and professional class · continue to strengthen the demand environment in the MMR. Against this backdrop, well-conceived products that pair location with wellness and design are positioned to capture demand across the premium-to-luxury spectrum.

For a developer focused on premium to ultra-luxury residential in the MMR, these are not abstract trends but the precise conditions in which your Company operates. It is against this backdrop that your Companys performance for the year should be read, recognising that the pace of revenue recognition in any single year reflects the timing of launches and execution milestones rather than the health of the market.

Company Review:

Man Infraconstruction Limited (MICL Group) has over six decades of experience in the construction industry. The Group built its name in port construction, delivering 8 ports in different phases across India. From this foundation, it expanded its construction expertise into diversified EPC works including residential & townships, commercial projects, industrial & IT parks, institutions and hospitals. Across EPC and real estate, the Group has today delivered 60+ million sq. ft. of construction, 60+ projects, and 20,000+ units, backed by an in-house engineering strength of 500+ engineers.

Over the past 12+ years, MICL Group has grown into one of Mumbais renowned real estate developers. It operates an asset-light model anchored in MMR. The Group has delivered 20+ real estate projects, spanning 8.0 million square feet of construction area and 3.1 million square feet of carpet area. Every project has been delivered ahead of schedule and is nearly fully sold out.

This track record is built on financial discipline. MICL is net debt free at consolidated levels as on March 2026, with healthy liquidity and backed by a CARE A+ credit rating, stable outlook.

Real Estate Introduction

MICL works on an asset-light model. Instead of acquiring land outright, it grows by collaborating with landowners and partners through Joint Development Agreements (JDA), Joint Ventures (JV), and the Development Manager (DM) model, while also undertaking select projects on its own. This approach keeps upfront investment low while applying MICLs execution strength across every project.

Within this model, MICL has built a distinct niche in redevelopment of private societies, cluster development, MHADA societies, and SRA projects across the MMR. It also carries a strong track record in building of high-rise towers.

The Groups ongoing and upcoming portfolio currently stands, spanning 12 projects with a combined gross development value (GDV) of Rs.18,625+ crores and 5.3 million square feet of carpet area. The portfolio reaches from South Mumbais most prestigious addresses · Tardeo and Marine Lines · through prime western and central suburbs, including Bandra (BKC, Pali Hill, off- Bandstand), Vile Parle, Goregaon, near Dahisar, Ghatkopar and Mulund serving the premium to ultra-luxury segments.

Operational Performance

In FY26, MICL recorded annual sales of Rs.1,800 Crores, backed by 5.02 lakh sq. ft. of carpet area sold. Collections stood at ~Rs.990 Crores. This was led by healthy traction across ongoing projects in Tardeo, Vile Parle, BKC, Mulund, and Dahisar.

During the year, MICL Group launched its BKC project, Artek Park, in Mumbais financial hub at the Bandra Kurla Complex (BKC), which has seen an encouraging response. The project remains in its launch phase, with nearly a quarter of inventory already sold while construction is still at the excavation stage

· an early signal of strong sales velocity.

At its flagship Aaradhya Avaan in South Mumbai, MICL has sold over two-thirds of project inventory. The Group has now launched the higher-floor inventory of the premium Oceano tower, with a newly opened experience centre to support sales. At the same project, the Group delivered the 38-storey members tower in under 2.5 years · a new delivery record for MICL.

The Group also deepened its South Mumbai presence with a new addition at Tardeo, carrying an estimated GDV of ~Rs.2,000 crores and nearly 3 lakh sq. ft. of carpet area for sale. With this addition, MICLs South Mumbai portfolio now stands at a combined GDV of over Rs.8,000 crores across Tardeo and Marine Lines, positioning the Group across some of Mumbais most prestigious residential micro-markets.

Subsequent to the year, MICL Group strengthened its Bandra presence with its third luxury acquisition in the micro-market

· an ultra-luxury sea-view residential development off Bandstand, Bandra West, with an estimated GDV of Rs.1,000+ crores. It is a boutique sea-view offering for the premium luxury segment. With this addition, MICLs Bandra portfolio, spanning Artek Park at BKC as well as the upcoming project at Pali Hill, represents a combined GDV of Rs.2,350+ crores.

MICL Group is preparing for the largest launch phase in its history. Subject to receipt of regulatory approvals and market conditions, the Group expects to launch new projects with a combined GDV potential of over Rs.6,700 crores · spanning Marine Lines, Tardeo, Pali Hill, off-Bandstand and Mulund. Together, these mark the next chapter of MICLs growth.

EPC

Introduction

The EPC division earns contracting revenue from infrastructure projects such as ports, government residential projects as well as for the Groups own residential developments. On select Group real estate projects, it also earns Project Management Consultancy (PMC) fees for providing professional construction services.

The division brings end-to-end execution capabilities, backed by its own plant, machineries, equipments, and manpower. Its expertise spans complex infrastructure, high-rise buildings, townships, and mass-housing. A disciplined focus on quality, timely delivery, with tight project monitoring and cost control, has earned lasting client trust and consistent repeat business.

Operational Performance

As of March 31, 2026, Companys EPC order book stands at Rs.392 crore, comprising of infrastructure projects and the residential segment.

On the infrastructure side, the BMCT project at Nhava Sheva is nearing completion. On the residential side, 4.4 million sq. ft. of construction area is under execution. This comprises PMC contracts for the projects at Tardeo, Vile Parle, and Mulund, alongside the EPC contract at BKC.

Looking ahead, the Groups strong real estate launch pipeline presents significant contracting opportunities for the EPC division, a meaningful share of which is expected to add to the EPC order book as projects are launched.

Consolidated Financial Performance

Revenue & Profitability

• The companys consolidated revenue from operations for FY26 stood at Rs. 631 crores and reported a total income of Rs. 792 crores.

• MICL achieved Net Profit after non-controlling interest of Rs.201 crores with a margin of 25.3%

Balance Sheet

• The consolidated net worth of the company for FY26 stands at Rs.2,266 crore

• The company has gross debt of Rs.58 crores and continues to be Net Debt Free with cash and cash equivalents of Rs.686 crores providing considerable strength for future growth.

Risk Management:

The Company works in an environment which is affected by various factors, some of which are controllable while others are outside the control of the Company. We have developed a vigorous risk management framework that reduces the volatility due to unfavorable internal and external events, facilitates risk assessment, mitigation and reporting procedures and enables timely reviews by the management. The following section discusses some of these risks and steps taken by the Group to mitigate such risks.

1. Macroeconomic Risk

Risk:

• Real estate and EPC sectors are inherently cyclical

• Sensitive to changes in GDP growth, interest rates, inflation, and consumer sentiment

Mitigation:

s Adopted a conservative approach with internal financial safeguards

s Use of joint development model to reduce upfront capital risk

s Maintained a net debt-free position with comfortable liquidity

s Focus on working with financially stable clients with timely payment records

2. Policy Risk

Risk:

• Non-Compliance with RERA regulations

• Delays and cost overruns

Mitigation:

s All active projects are RERA-registered, ensuring compliance and transparency

s Regular quality and timeline check at key project milestones

s Strong financial discipline and focus on on-time project delivery

s Maintains high construction standards

3. Execution Risk

Risk:

• Project timelines may be affected by regulatory procedures, approvals, and resource availability

Mitigation:

s Well-defined operating procedures followed from project planning to execution

s Internal monitoring systems help maintain process discipline

s Detailed due diligence before entering joint development partnerships

4. Liquidity Risk Risk:

• Significant initial investment and returns at expected at the end of project

• RERAs mandates 70% allocation to project specific accounts

• Project delays can impact cash flows

Mitigation:

s Prudent planning of cash flows and disciplined capital deployment

s Strong working capital management practices

s EPC contracts often provide mobilization advances to support upfront funding needs

s Net Debt free as of March 31, 2026

5. Input Price Risk Risk:

• Cost overruns due to rising material and labor costs

Mitigation:

s Risk accounted for at project launch s Phased sales to cover rising construction costs

6. Sales Volume Risk Risk:

• Actual sales may vary from projections due to changing market preferences or economic conditions

Mitigation:

s Careful selection of projects based on location, design, and market trends

s Delivering superior quality and building strong client relationships

s Utilizing latest technologies and cost-effective measures for timely delivery

s Offering distinctive project features to stand out in the market

Human Resources

The strength of MICL lies in its people. A motivated, skilled, and engaged workforce is vital to driving growth and sustaining business excellence. The Company continues to invest in developing its human capital, recognizing employees as its core competitive advantage.

Employee Development

s Management is dedicated to continuously upgrading skills and competencies at all levels through extensive training.

s Focuses fostering employee development, and offering competitive compensation

s As of 31^st March 2026, the MICL Group employs over 850 individuals

Expertise and Culture

s Well-qualified employee possessing the technical expertise necessary to execute projects

s Maintaining an excellent work culture with high retention ratio

s Commitment to ensuring safe working conditions s Promoting social awareness

Internal Control Systems

The Company has an adequate internal control system in place to safeguard all assets and ensure their efficient productivity. It employs a quality management system for design, planning, and construction that complies with international quality standards.

Business Processes and Operations

• Company has a suitable internal control system for the business processes, operations, financial reporting, compliance with applicable laws and regulations

• Enterprise Resource Planning (ERP) software is in place at the Head Office and across its sites

• Periodical audits conducted by an Internal Audit firm ensure the adequacy of internal control systems and adherence to management policies

• When necessary, internal control systems are reassessed and corrective actions are taken

Cautionary Statement

This management discussion and analysis may contain forward looking statements that reflects Companys performance with respect to future events. The management believes these to be true to the best of its knowledge at the time of preparation of this report. The actual results may differ materially from those anticipated in the forward-looking statements as a result of many factors.