Manav Infra Projects Ltd Management Discussions

The infrastructure sector plays a pivotal role in driving economic growth, enabling connectivity, and improving the quality of life for communities. As a cornerstone of national development, infrastructure Companies are entrusted with building and maintaining critical assets such as roads, bridges, ports, power systems, and urban facilities. This Management Discussion and Analysis (MD&A) report provides a comprehensive overview of the Companys performance, strategic direction, and operational highlights during the financial year. Our Company “Manav Infra Projects Limited” operates in a dynamic environment shaped by government policies, technological advancements, and evolving sustainability standards. The year under review witnessed significant progress in project execution, capacity expansion, and adoption of innovative construction practices. At the same time, challenges such as rising input costs, regulatory compliance, and global economic uncertainties required agile responses and prudent financial management.

This report aims to present a transparent and structured analysis of the Companys financial results, operational achievements, risks, and opportunities. It also outlines the strategies undertaken to strengthen our competitive position, enhance stakeholder value, and contribute to sustainable infrastructure development.

INDUSTRY OVERVIEW

The infrastructure sector continues to remain a critical pillar of economic development, supporting industrialisation, urbanisation, connectivity and overall economic growth. Infrastructure development encompasses a wide range of activities including roads and highways, bridges, buildings, urban infrastructure, water and wastewater management, power, transportation, logistics and other related projects.

The sector continues to benefit from sustained government focus on infrastructure development, increasing public and private sector investments, urbanisation and the growing requirement for modern and sustainable infrastructure. Increased emphasis on improving connectivity, developing urban infrastructure and strengthening the countrys physical and economic infrastructure is expected to create opportunities for companies operating in the sector.

The infrastructure industry, however, remains exposed to challenges such as fluctuations in raw material prices, availability of skilled manpower, project execution risks, regulatory approvals, land acquisition issues, financing constraints, changes in government policies and delays in project completion.

Against this backdrop, the Company remains focused on strengthening its execution capabilities, maintaining financial discipline and pursuing opportunities that are aligned with its technical expertise and risk appetite.

ECONOMIC AND BUSINESS ENVIRONMENT:

The overall business environment during the financial year 2025-26, remained positive supported by continued infrastructure spending and investments in various segments of the economy.

The Governments continued emphasis on infrastructure development, connectivity, capital expenditure and public facilities has provided a favourable environment for infrastructure companies. At the same time, the industry continues to experience competitive intensity and pressure on project margins, requiring companies to focus on efficient execution, cost optimisation and prudent working capital management. The Company continues to monitor developments in the economic and business environment and evaluates opportunities with a focus on sustainable growth and long-term value creation.

COMPANY OVERVIEW:

Manav Infra Projects Limited ("the Company") is a listed infrastructure company engaged primarily in Infrastructural Services.

The Company has established capabilities in infrastructural industries in the recent year and have performed very well since last year.

During the year under review, the Company continued to focus on its core business activities while strengthening its operational capabilities and pursuing opportunities for sustainable growth.

The Companys business strategy is centred around:

• Strengthening execution capabilities;

• Improving operational efficiency;

• Maintaining quality and safety standards;

• Expanding the project portfolio selectively;

• Enhancing customer relationships;

• Optimising working capital;

• Maintaining prudent financial management; and

• Creating sustainable long-term value for stakeholders.

OPERATIONAL PERFORMANCE:

During the financial year under review, the Company continued to focus on timely and efficient execution of its ongoing projects.

The Company undertook various initiatives aimed at improving project execution, resource utilisation, cost management and operational efficiency. Management continued to closely monitor project progress and address operational challenges to ensure timely completion and delivery. The Companys order book provides visibility of future revenue and reflects the continued confidence of its customers and business partners in its execution capabilities.

FINANCIAL PERFORMANCE:

The financial performance of the Company during the year under review is summarised below:

Rs. In Lakhs

PARTICULARS	31.03.2026	31.03.2025
Revenue from operations	4155.77	2449.73
Other Income	28.67	15.14
Total Income	4184.44	2464.87
Financial Costs	90.06	152.96
Depreciation	142.70	82.88
Profit/(Loss) before Tax	462.17	310.58
Less : Tax Expense / (Credit)
(1) Current tax
(2) Deferred tax	59.62	(11.29)
Profit After T ax	402.55	321.87
Paid Up Share Capital	1316	1316

REVENUE:

Revenue from operations for the year stood at Rs. 415,577,331 as against Rs. 244,973,386 in the previous year, representing an increase in the revenue during the financial year 2025-26.

The movement in revenue was primarily attributable to higher project execution and receipt of various new projects during the financial year.

PROFITABILITY:

Profit Before Tax stood at Rs. 46,217,380/- as compared to Rs. 31,057,502/- in the previous year. Profit After Tax stood at Rs. 40,255,279/- as compared to Rs. 32,186,596/- in the previous year.

The profitability during the year was influenced by factors such as project mix, execution efficiency, raw material prices, employee costs, finance costs and other operating expenses.

The Company continues to focus on improving project margins through efficient procurement, cost optimisation, project monitoring and better utilisation of resources.

SEGMENT-WISE PERFORMANCE:

The Company operates primarily only in the following business segments:

Infrastructure Business.

The infrastructure segment remained the principal contributor to the Companys operations. During the year, the Company focused on execution of ongoing projects and selective bidding for new opportunities.

ORDER BOOK AND PROJECT PIPELINE:

A healthy order book is an important indicator of revenue visibility for infrastructure companies. As on March 31, 2026, the Companys order book stood at approximately Rs. 18 Crores comprising projects across the state.

The Company continues to adopt a selective approach towards new projects, with emphasis on:

• Project profitability;

• Counterparty credibility;

• Payment terms;

• Execution timelines;

• Working capital requirements;

• Project-specific risks; and

• Overall return on capital employed.

The Company expects its existing order book, together with opportunities under evaluation, to support business growth in the coming years.

WORKING CAPITAL MANAGEMENT:

Efficient working capital management remains a key priority for the Company due to the working capital- intensive nature of the infrastructure business.

The Company continues to focus on timely billing, collection of receivables, optimisation of inventory levels, efficient utilisation of advances and improved cash-flow management.

Management regularly monitors receivables, project-wise cash flows and contractual claims to maintain adequate liquidity and minimise financial stress.

HUMAN RESOURCES AND INDUSTRIAL RELATIONS:

Human capital continues to be an important component of the Companys success.

The Company believes that skilled, motivated and engaged employees are essential for efficient project execution and sustainable growth. During the year, the Company continued to focus on employee development, training, workplace safety and employee engagement. The industrial relations across the organisation remained satisfactory during the financial year.

TECHNOLOGY AND DIGITALISATION:

The Company continues to evaluate and adopt technology-driven solutions to improve project monitoring, operational efficiency, documentation, cost control and communication.

The increasing adoption of digital tools, project management systems, data analytics and technology- enabled monitoring is expected to enhance transparency and efficiency in infrastructure project execution.

The Company remains committed to adopting appropriate technologies based on business requirements and cost-benefit considerations.

HEALTH, SAFETY AND ENVIRONMENT:

Health and safety remain integral to the Companys project execution philosophy. The Company seeks to maintain appropriate safety standards at its project sites and encourages employees, contractors and other stakeholders to adhere to applicable safety practices. The Company also recognises the importance of environmental sustainability in infrastructure development and seeks to comply with applicable environmental requirements and regulatory standards. Where applicable, the Company continues to focus on responsible resource utilisation, waste management, energy efficiency and minimising the environmental impact of its operations.

RISK MITIGATION:

The Company has established processes for identifying, assessing and monitoring key business risks.

Risk mitigation measures include:

• Regular monitoring of project progress;

• Evaluation of projects before bidding;

• Effective contract management;

• Cost and procurement controls;

• Regular monitoring of receivables;

• Diversification of customers and projects, wherever feasible;

• Maintaining adequate liquidity;

• Compliance with applicable laws and regulations; and

• Periodic review of operational and financial risks by management.

The Company believes that its risk management framework enables it to identify emerging risks and take timely corrective action.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has established internal control systems commensurate with the size, scale and complexity of its operations.

The internal controls are designed to ensure:

• Reliability of financial reporting;

• Safeguarding of assets;

• Efficient utilisation of resources;

• Compliance with applicable laws and regulations;

• Prevention and detection of fraud and errors; and

• Appropriate authorisation and approval of transactions.

The internal audit function periodically reviews the adequacy and effectiveness of internal controls and reports significant observations to the appropriate management/Board-level authority. The management believes that the Companys internal control systems are adequate and operating effectively.

OUTLOOK:

The medium-to-long-term outlook for the infrastructure sector remains encouraging, supported by continued investment in infrastructure, urbanisation, industrial development and public capital expenditure.

The Company expects opportunities to emerge across roads/highways/EPC/buildings/urban infrastructure and other relevant sectors.

Going forward, the Company will remain focused on profitable growth rather than growth at any cost. The key priorities will include strengthening the order book, improving execution, enhancing margins, managing working capital efficiently and maintaining financial discipline.

The Company will continue to evaluate new opportunities selectively, taking into consideration project viability, execution capability, counterparty quality, funding requirements and expected returns.

CAUTIONARY STATEMENT:

Statements in this Management Discussion and Analysis describing the Companys objectives, expectations, estimates, projections and outlook may constitute "forward-looking statements" within the meaning of applicable securities laws and regulations.

These statements are based on certain assumptions and expectations concerning future events and are subject to various risks and uncertainties. Actual results could differ materially from those expressed or implied in such forward-looking statements due to various factors, including changes in economic conditions, government policies, regulatory environment, market conditions, project execution, raw material prices, interest rates, competition and other risks.

The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of future events or otherwise, except as required under applicable laws.

MANAGEMENT PERSPECTIVE:

The management remains committed to strengthening the Companys position in the infrastructure sector through disciplined growth, efficient execution, prudent financial management and strong corporate governance.

The Company will continue to focus on delivering quality infrastructure solutions, building long-term stakeholder relationships and creating sustainable value for shareholders while maintaining appropriate standards of safety, compliance and responsible business conduct.