Manglam Infra & Engineering Ltd Management Discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT (MDAR)

The Management Discussion and Analysis ("MD&A") provides an overview of the business environment, industry developments, operational and financial performance of Manglam Infra & Engineering Limited ("the Company") during the financial year ended March 31,2026, together with the opportunities, risks and outlook for the business. The discussion should be read in conjunction with the audited Financial Statements, the Notes forming part thereof and other sections of this Annual Report.

A. Industry Structure and Developments

Infrastructure development continued to remain one of the key priorities for Indias economic growth during the financial year 2025-26. The Governments sustained focus on capital expenditure, expansion of national highways, railway infrastructure, multimodal logistics, urban development and public infrastructure created a favourable environment for engineering consultancy and project management service providers.

The demand for specialised consultancy services has continued to evolve with increasing emphasis on project planning, engineering design, quality assurance, independent supervision, digital project monitoring and efficient contract management. Timely execution, compliance with technical standards and effective project monitoring have become increasingly important in ensuring successful project delivery.

Despite the positive long-term outlook, the sector continues to face challenges arising from delays in land acquisition, statutory approvals, environmental clearances, changing project schedules and competitive bidding. These factors influence the pace of project execution across the infrastructure value chain. Nevertheless, the continued policy emphasis on infrastructure creation and connectivity is expected to support sustained demand for professional engineering consultancy services.

B. Business Overview

Manglam Infra & Engineering Limited is engaged in providing engineering consultancy and project management services for infrastructure projects. Its service portfolio includes survey and investigation, eng ineering design, preparation of Detailed Project Reports (DPRs), Project Management Consultancy (PMC), construction supervision, quality assurance, technical advisory and operation and maintenance support. The Company primarily caters to Government departments, public sector undertakings and other organisations engaged in infrastructure development.

As on March 31, 2026, the Companys order book stood at approximately Rs 67.00 Crores. The order book comprises consultancy assignments at various stages of execution and provides visibility for future business operations, subject to project schedules, contractual milestones and statutory approvals.

C. Segment-wise or Product-wise Performance

Manglam Infra & Engineering Limited operates in a single business segment, i.e., engineering consultancy and project management services for infrastructure projects. Accordingly, segment reporting is not applicable in accordance with the applicable Accounting Standards. Therefore, the operational and financial performance of the Company has been discussed on an overall basis in this Management Discussion and Analysis.

D. Financial Performance with Respect to Operational Performance

The financial performance of the Company during the financial year 2025-26 is summarised below:

Particulars	FY 2025-26 (Rs in Lakhs)	FY 2024-25 (Rs in Lakhs)
Revenue from Operations	3,486.92	4,518.16
Other Income	117.03	107.19
Total Income	3,603.95	4,625.36
Profit Before Tax	421.16	400.16
Profit After Tax	313.89	293.25

Revenue from operations for the financial year stood at Rs3,486.92 Lakhs as against Rs4,518.16 Lakhs in the previous year. The variation in revenue was primarily attributable to the timing of execution of consultancy assignments and achievement of project milestones during the year.

Despite the decline in revenue, the Company reported improved profitability. Profit Before Tax increased to Rs421.16 Lakhs from Rs400.16 Lakhs, while Profit After Tax increased to Rs313.89 Lakhs from Rs293.25 Lakhs in the previous financial year. The improvement in profitability was supported by prudent cost management and efficient utilisation of resources during the year.

The Company continued to maintain financial discipline during the year with emphasis on prudent cost control, effective working capital management and efficient deployment of available resources.

E. Opportunities and Threats

Indias continued focus on infrastructure-led development presents significant opportunities for engineering consultancy companies. Continued investments in highways, railways, urban infrastructure, logistics and public utilities are expected to sustain the demand for engineering consultancy, project management and construction supervision services. Increasing emphasis on quality assurance, digital project monitoring, asset management and sustainable infrastructure development is also expected to create opportunities for specialised consultancy services.

At the same time, the infrastructure consultancy sector operates in a competitive environment where technical capability, timely execution and competitive pricing remain key differentiating factors. Project execution may be impacted by delays in land acquisition, statutory approvals, environmental clearances, funding constraints and changes in Government policies or tender conditions. The Company also faces competition from established engineering consultancy firms, which may exert pressure on margins in competitive bidding. In addition, the availability and retention of qualified technical professionals continue to be important for maintaining operational efficiency and service quality.

The Company continues to monitor these factors closely and remains focused on leveraging emerging opportunities while adopting appropriate measures to mitigate business risks through prudent project selection, efficient execution and disciplined operational management.

F. Risks and Concerns

The infrastructure consultancy business is subject to a number of operational and business risks. Delays in land acquisition, statutory approvals, environmental clearances and project funding may affect project commencement and execution timelines. Changes in Government policies, tender conditions and regulatory requirements may also influence business opportunities and project implementation.

The Company also operates in a competitive environment where pricing pressure and intense competition remain key business considerations. In addition, timely availability and retention of qualified technical professionals continue to be important for successful execution of consultancy assignments.

The management regularly reviews project progress, contractual obligations, financial exposures and operational risks to ensure timely identification of potential issues and implementation of appropriate mitigation measures.

G. Internal Control Systems and Their Adequacy

The Company has established an internal control framework commensurate with the size, nature and complexity of its operations. The internal control systems are designed to safeguard the Companys assets, ensure the reliability of financial reporting, promote operational efficiency and ensure compliance with applicable laws, regulations and internal policies.

Internal audit is carried out to evaluate the effectiveness of internal controls and key business processes. The Internal Auditor submits observations and recommendations to the Audit Committee, which reviews the adequacy of the internal control framework and monitors the implementation of corrective actions, wherever considered necessary.

H. Human Resources and Industrial Relations

The Company believes that its employees are integral to its continued growth and operational success. It remains committed to providing a professional work environment that encourages learning, teamwork and accountability.

During the year, the Companys efforts remained focused on strengthening employee capabilities through technical learning and professional development while maintaining a safe, healthy and inclusive workplace. Industrial relations remained cordial throughout the financial year, and the Company continued to comply with applicable laws.

As on March 31, 2026, the Company had 280 employees on its rolls. The management remains committed to attracting, developing and retaining competent professionals who contribute to the Companys long-term growth and operational excellence.

I. Key Financial Ratios

The Company monitors key financial ratios to evaluate its liquidity, solvency, operational efficiency and profitability. The details of the key financial ratios for the financial year ended March 31,2026, together with comparative figures for the previous financial year and explanations for significant changes, wherever applicable, form part of the Financial Statements and the Notes thereto included in this Annual Report.

J. Outlook

Indias infrastructure sector is expected to remain an important contributor to the countrys economic growth. Continued Government investment in transportation infrastructure, logistics, urban development and other public infrastructure is expected to support demand for engineering consultancy and project management services over the medium to long term.

The Company will continue to focus on its core strengths in engineering consultancy by enhancing technical capabilities, maintaining execution quality and pursuing opportunities that are aligned with its expertise. Management remains committed to strengthening operational efficiency, maintaining financial discipline and delivering value to all stakeholders through sustainable business practices.

Cautionary Statement

Statements in this Management Discussion and Analysis describing the Companys objectives, expectations, estimates, projections, business outlook or future performance may constitute "forward-looking statements" within the meaning of applicable securities laws and regulations. These statements are based on assumptions and expectations of future events that the management believes to be reasonable at the time of preparation of this Annual Report. However, actual results may differ materially from those expressed or implied due to various factors, including changes in Government policies and regulations, tax laws, economic conditions, project execution schedules, competitive conditions and other domestic or global developments beyond the Companys control. The Company undertakes no obligation to publicly update, amend or revise any forward-looking statements on the basis of subsequent developments, information or events.

The financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP), including the Accounting Standards notified under Section 133 of the Companies Act, 2013, read with the applicable Rules thereunder and other relevant provisions of the Companies Act, 2013. The financial statements have been prepared under the historical cost convention on the accrual basis of accounting.

The discussion on the Companys financial condition and results of operations should be read in conjunction with the audited Financial Statements and the Notes thereto forming part of this Annual Report. Unless the context otherwise requires, references to "the Company" "Manglam", "MIEN, "we", "our" and "us" refer to Manglam Infra & Engineering Limited.