Forward looking statement
Statements in this Management Discussion and Analysis of Financial Condition and Results of Operations of the Company describing the Companys objectives, expectations or predictions may be forward looking within the meaning of applicable securities laws and regulations. Forward looking statements are based on certain assumptions and expectations of future events.The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. The Company assumes no responsibility to publicly amend, modify or revise forward looking statements, on the basis of any subsequent developments, information or events. Actual results may differ materially from those expressed in the statement. Important factors that could influence the Companys operations include changes in government regulations, tax laws, economic developments within the country and such other factors globally.
The financial statements are prepared under historical cost convention, on accrual basis of accounting, and in accordance with the provisions of the Companies Act, 2013 (the Act) and comply with the Indian Accounting Standards as pronounced by the Institute of Chartered Accountants of India (ICAI) from time to time. The Management of Manglam Infra & Engineering Limited has used estimates and judgments relating to the financial statements on a prudent and reasonable basis, in order that the financial statements reflect in a true and fair manner, the state of affairs and profit for year.
The following discussions on our financial condition and result of operations should be read together with our audited financial statements and the notes to these statements included in the annual report. Unless otherwise specified or the context otherwise requires, all references herein to "we", "us", "our", "the Company", "Manglam" are to "Manglam Infra & Engineering Limited".
OVERVIEW
Global Economic Overview
The global economy is witnessing a gradual deceleration, with GDP growth expected to moderate from 3.2% in 2024 to 3.0% in 2025, and further to 2.9% in 2026. This slowdown is largely driven by tighter monetary conditions in advanced economies, softening global demand, and escalating geopolitical and trade-related uncertainties. Advanced economies are projected to grow at a subdued pace of around 1.3%, reflecting the continued impact of high interest rates and cautious consumer sentiment. Meanwhile, emerging markets are expected to remain relatively resilient, with projected growth of 4.1% in 2025, although some moderation is likely as global financial conditions tighten and export momentum stabilizes.
On the policy front, central banks are proceeding cautiously with interest rate normalization. While global inflation is gradually easing from 4.5% in 2024 to an estimated 3.6% in 2025 it continues to pose challenges in select regions, particularly where tariff-related pressures and commodity price volatility remain elevated. Protectionist policies, such as increased tariff rates in some advanced economies, have distorted trade flows and introduced new uncertainties, forcing businesses to reassess their sourcing strategies and invest in more resilient supply chains.
Financial markets are also undergoing a realignment, with rising bond yields and weakening correlations between traditional asset classes leading to a broader repricing of risk. At the same time, high levels of public debt and increasing interest costs are placing pressure on fiscal policies, limiting the scope for stimulus in many economies. Labour markets are experiencing structural shifts as well. Talent shortages persist across several sectors despite the growing adoption of automation and artificial intelligence, prompting companies to rethink workforce strategies and invest in re-skilling and upskilling initiatives.
In this evolving environment, supply chain resilience has become a strategic imperative. Companies are placing greater emphasis on building shock-absorbing capabilities and ensuring business continuity through diversified efficiency, key themes across industries. The company continues to closely monitor these global developments and remains focused on aligning its operations, investments, and long-term strategy with the dynamic macroeconomic landscape.
Regional Highlights
US: Growth slowing from 2.8% (2024) to 1.5%
(2025) and 1.3% (2026); labour and capex expected to soften under tariff pressure.
Euro Area & UK: Modest growth (1.0 1.3%) amid disinflation; cautious ECB/BoE easing expected.
China: Facing domestic headwinds, growth tapers to 4.4% in 2025.
India: Sustains robust momentum at 6.6% growth.
Other regions: Mixed outlook ASEAN (4.5%),
MENA (3.6%), Sub-Saharan Africa (3.1%)
Annual real GDP growth over time across select developed markets. For 2025F and 2026F, bars represent our latest forecast, while dots indicate our forecast from January 2025 for comparison.
Emerging markets y/y percentage change in real GDP
2023-26F
Annual real GDP growth over time across select emerging markets. For 2025F and 2026F, bars represent our latest forecast, while dots indicate our forecast from January 2025 for comparison.
Source: https://www.ey.com/en_us/insights/strategy/global-economic-outlook
Indian Economic Overview
India continues to lead the global growth narrative, having emerged as the worlds fourth-largest economy in 2025, propelled by domestic reforms and strategic global positioning under the Aatmanirbhar Bharat vision. According to IMF projections, India is expected to remain the fastest-growing major economy, with GDP growth forecast at 6.2% in 2025 and 6.3% in 2026. The UNs mid-year update similarly estimates growth at 6.3% for FY25, rising to
6.4% in FY26 the highest among major economies.
Provisional estimates from the Ministry of Statistics indicate real GDP growth of 6.5% in FY 2024–25, supported by strong construction (+9.4%), services, robust private consumption (+7.2%), and healthy investment activity (+7.1%).
Inflation has moderated, with headline CPI easing to 3.6% in February 2025, while RBI projects inflation to average around 4.0–4.2% in FY 2025–26.
External sector performance remains solid: exports have surged to a record US $825 billion in FY 2024–25, reflecting a 76% increase over the past decade, driven by engineering goods, electronics, pharmaceuticals, and services.
With inflation in check and banks in good health (public sector NPLs around 2.6%), macroeconomic fundamentals remain sound.
Overall, Indias strong growth trajectory, anchored by resilient domestic demand, controlled inflation, rising exports, and progressive reforms, positions it well to sustain momentum, building on its role as a key engine of global economic growth.
INDUSTRY STRUCTURE AND DEVELOPMENTS
Global Infrastructure & Engineering Industry
The global infrastructure and engineering industry in FY
2024 25 continued to reflect a mixed performance across regions. While developed markets faced challenges from tightening monetary policy, elevated inflation, and high public debt levels, emerging markets showed stronger activity in urban infrastructure, transportation, and renewable energy.
Key global trends included:
Increased capital allocation to climate-resilient infrastructure and ESG-linked financing.
Realignment of global supply chains to mitigate geopolitical risk.
Strong investment in digital engineering, including BIM (Building Information Modelling), prefabrication, and automation.
Expansion of transport corridors in Asia, Africa, and MENA under multilateral support (e.g., Belt and Road, EU Global Gateway).
Despite funding constraints in developed markets, global infrastructure FDI remained stable, with growing private sector appetite for greenfield and brownfield assets in transport, water, and energy.
Indian Infrastructure & Engineering Industry
Indias infrastructure sector continued to be a cornerstone of economic growth during FY 2024
25, with sustained momentum across roads, urban development, water, transport, and renewable energy. The Governments focus remained anchored in long-term investment through the National Infrastructure
Pipeline (NIP) and PM Gati Shakti National Master
Plan for Multimodal Connectivity, alongside a record high capital expenditure outlay of 11.1 lakh crore in the
Union Budget 2024 25, reflecting a 16% YoY increase.
Execution of projects under EPC (Engineering, Procurement and Construction), HAM (Hybrid Annuity
Model), and PPP (Public Private Partnership) models accelerated significantly, with multiple tenders floated across NHAI, Ministry of Housing and Urban Affairs, Jal Shakti Ministry, and state infrastructure agencies.
Sectoral Trends and Demand Drivers
Roads & Highways: The National Highways network expanded by over 10,000 km in FY 2024
25. NHAI awarded road projects worth 2.7 lakh crore, with strong participation under EPC and HAM formats.
Urban Infrastructure: Continued momentum in AMRUT 2.0, Smart Cities Mission, and metro rail systems supported demand for urban engineering solutions.
Water & Waste Management: Projects under Jal Jeevan Mission and Namami Gange gained traction, supported by multilateral funding, offering opportunities in pipeline networks, STPs, and water treatment EPC.
Power & Renewables: Government initiatives like PM-KUSUM, offshore wind tenders, and green hydrogen infrastructure sparked EPC opportunities in T&D, substations, and energy corridors.
Manglam Infra & Engineering Limited: Sector Participation and Strategic Positioning
Manglam Infra & Engineering Limited actively participated in this growth environment, leveraging its deep EPC execution capabilities and sectoral expertise to capitalize on opportunities across core and emerging infrastructure verticals.
During FY 2024 25, the Company:
Executed over 45.18 crore worth of projects in roads, urban infra, and industrial civil works across multiple Indian states.
Expanded its presence in water and waste-water EPC, winning initial orders from state governments and urban local bodies.
Strengthened its pre-qualification credentials by timely completing large-scale EPC contracts, improving its eligibility for higher-value bids.
Deployed digital project management tools to enhanceon-sitevisibility,costcontrols,andschedule adherence, ensuring best-in-class execution quality.
Manglam Infra is strategically aligned with Indias infrastructure growth trajectory, maintaining a selective bidding approach focused on margin accretive projects, operational risk discipline, and client diversification.
The Company continues to pursue opportunities under NIP, Gati Shakti corridors, and emerging sectors such as water management and renewable energy EPC.
With a robust and diversified balance sheet metrics, and a strong project execution team, Manglam Infra & Engineering Limited is well-positioned to benefit from Indias multi-decade infrastructure transformation.
BUSINESS OVERVIEW
Manglam Infra & Engineering Limited ("the Company") is a listed, multi-disciplinary infrastructure development and engineering services enterprise engaged in executing projects across the infrastructure value chain, including roads and highways, urban infrastructure, water and wastewater management, and industrial civil construction. Headquartered in India, the Company has built a robust presence across multiple states and sectors, underpinned by its expertise in EPC (Engineering, Procurement & Construction) project execution.
With a growing track record of delivering complex, time-bound projects, Manglam Infra has positioned itself as a reliable partner to central and state government agencies, public sector undertakings, and select private clients. Its project execution capabilities are complemented by investments in digital tools, advanced construction methodologies, and a focus on sustainability and quality compliance.
Key Business Segments
Roads & Highways: The Company undertakes the construction of national and state highways, bridges, flyovers, and rural roads under EPC and
Hybrid Annuity Model (HAM) contracts. It is pre-qualified with NHAI, MoRTH, and multiple state
PWDs.
Urban Infrastructure: This includes the development of smart-city infrastructure, municipal utility services, drainage networks, and urban housing complexes under AMRUT 2.0 and Smart Cities Mission.
Water & Wastewater Management: The Company has entered the water infrastructure space with orders involving water pipeline laying, sewage treatment plants (STPs), and related civil works under the Jal Jeevan Mission and Namami Gange programme.
Industrial & Civil Engineering Projects: Manglam Infra also executes site development, plant civil works, and industrial sheds for clients in sectors such as logistics, cement, and energy.
Strategic Differentiators
Execution Track Record: Proven experience in delivering projects on time and within cost, even in challenging geographies.
Diversified Exposure to multiple sectors and funding models (Govt-funded, multilateral, PPP).
Pre-Qualification Strength: Registered with key central and state authorities with high-value PQ credentials.
Digital Project Management: Use of modern tools for real-time monitoring, procurement control, and risk tracking.
Sustainability Commitment: Integration of ESG principles in design, construction, and operations, with a focus on green building practices and waste minimization.
Vision and Strategic Focus
Manglam Infras vision is to become a leading infrastructure and engineering firm delivering sustainable, high-quality infrastructure solutions that enable socio-economic transformation. The Company continues to focus on:
Expanding into high-growth infrastructure subsegments such as green energy and water resilience.
Enhancing margins through operational efficiency and cost discipline.
Project Portfolio:
Strengthening talent and leadership across technical and commercial functions.
Deepening presence in high-priority government infrastructure programmes.
Segment-wise performance
Not Applicable
Financial Performance Overview
Particulars (in Lacs) |
FY 2023-24 |
FY 2024-25 |
Net Worth |
1676.71 |
4426.50 |
Total Receipts |
3495.00 |
4625.36 |
Profit Before Tax |
890.35 |
400.16 |
Net Profit |
661.77 |
293.25 |
EBITDA |
1006.95 |
608.91 |
EPS |
7.50 |
1.84 |
Gross block |
607.08 |
915.13 |
Particulars |
FY 2023-24 |
FY 2024-25 |
Net Worth |
1676.71 |
4426.50 |
Total Receipts |
3495.00 |
4625.36 |
Profit Before Tax |
890.35 |
400.16 |
Net Profit |
661.77 |
293.25 |
EBITDA |
1006.95 |
608.91 |
Gross Block |
607.08 |
915.13 |
Debtors Turnover Ratio |
2.07 |
2.16 |
Inventory Turnover Ratio |
Not Applicable |
Not Applicable |
Interest Coverage Ratio |
32.29 |
9.44 |
Current Ratio |
1.55 |
2.71 |
Debt Equity Ratio |
0.21 |
(0.22) |
Operating Margin Ratio |
Not Applicable |
Not Applicable |
Net Profit Margin Ratio |
19.08 % |
6.49 % |
EBITDA % |
28.81 % |
13.16 % |
EPS |
7.50 |
1.84 |
The Company reported notable improvements in key financial ratios, reflecting enhanced operational efficiency and financial health.
Strategic & Operational Highlights (FY 2024–25)
FY 2024 25 was a year of strategic consolidation and operational acceleration for Manglam Infra
& Engineering Limited. In the backdrop of strong infrastructure policy momentum and increased capital expenditure by government agencies, the Company executed a series of strategic initiatives aimed at driving scale, improving margins, and enhancing execution capability.
Strategic Highlights
Diversification intoWaterEntered the water and wastewater EPC segment with initial project wins under Jal Jeevan Mission and urban sewerage programs, aligning with the Companys long-term goal of participating in essential utility infrastructure.
Geographic Expansion: Successfully entered two new Indian states through competitive bidding, expanding the Companys presence to X+ states and reducing project concentration risk.
Digital Transformation: Rolled out an integrated Project Monitoring Dashboard and ERP-linked procurement tracking system, ensuring real-time visibility into project milestones, billing cycles, and material management.
Strengthened ESG Roadmap: Formulated an ESG compliance framework to improve project-level environmental reporting, safety audits, and green construction practices. Several new tenders submitted included sustainability-linked metrics.
Enhanced Prequalification Credentials: Upgraded PQ capabilities through the timely completion of high-value projects, increasing eligibility for bids above 500 crore under NHAI, Smart Cities Mission, and State Infra agencies.
Operational Highlights
Order Book Strength: As of 31 March 2025, the Company had a robust and diversified of 22.82 crore. Over 70% of the order book was EPC-based, with the rest under HAM and design-build formats.
On-Time Project Delivery: Achieved 95% on-time delivery ratio across all major projects during the year, with improved milestone achievement under penalty-linked contracts.
Improved Equipment Utilization: Enhanced mechanization and asset tracking helped achieve
18% higher equipment productivity, reducing overall project execution time and rental costs.
Manpower & Safety: The average on-site workforce exceeded 3,500 personnel during peak execution months, with zero fatal incidents and an increased frequency of toolbox safety talks and training sessions.
Operational Efficiencies: Reduced average working capital cycle by 8 days YoY, supported by quicker billing turnaround and faster government clearances in key states.
Outlook
Infrastructure:
As India continues to consolidate its position as the fastest-growing major economy, the infrastructure sector is poised for robust expansion, backed by sustained government commitment to capital investment, rising private sector participation, and favourable policy frameworks such as the National Infrastructure Pipeline (NIP) and PM Gati Shakti. Against this backdrop, Manglam Infra & Engineering Limited enters FY 2025 26 with strong momentum and a well-diversified project portfolio.
Macro and Sectoral Tailwinds
Infrastructure-Led Growth: The Union Budget
2025 26 increased capital outlay for infrastructure by over 15%, with significant transport, water resources, smart cities, and industrial corridors, directly supporting the Companys core segments.
Urban and Water Infrastructure Demand: Continued thrust under AMRUT 2.0, Smart Cities Mission, and Jal Jeevan Mission presents sustained demand in urban infrastructure and essential utilities key areas where the Company is expanding its presence.
Digital and Green Construction: The rising adoption of sustainable construction norms, ESG-linked tendering, and digital project execution is creating long-term competitiveness opportunities for players with adaptive capability. order book
Company Strategy Moving Forward
Manglam Infra aims to strengthen its strategic position by pursuing:
Disciplined Order Book Expansion: Focus on quality order inflow in sectors aligned with core competencies, while maintaining healthy margins and avoiding over-leveraging.
Operational Excellence: Continued investment in digital project management, mechanization, and centralized procurement to improve execution speed, safety, and cost efficiency.
Geographic and Sectoral Diversification : Targeting new geographies and entering high-growth verticals such as renewable energy civil works, water EPC, and rail infrastructure to reduce project concentration risk.
Strengthening Financial Position: Enhancing cash flow management, working capital discipline, and optimal debt servicing to support scalability and credit strength.
People and Capability Building: Continued focus on strengthening technical and project leadership talent, safety culture, and ESG awareness across project sites and offices.
Medium-Term Growth Prospects
Manglam Infra expects to maintain a double-digit revenue growth trajectory over the next 2 3 years, supported by:
Order book execution ramp-up,
Increased bid participation in high-value EPC tenders, and
Improving working capital efficiency.
With a resilient business model, execution discipline, and alignment to national infrastructure priorities, the Company is well positioned to participate meaningfully in Indias infrastructure transformation journey.
STRENGTHS, CHALLENGES, OPPORTUNITIES & THREATS
Core Strengths
Manglam Infra & Engineering Limited leverages its engineering capabilities, sectoral expertise, and execution discipline to drive sustainable growth. The Companys key strengths include:
Proven Execution Track Record: Strong credentials in delivering EPC projects in roads, bridges, and civil infrastructure within stipulated timeframes.
Diversified Participation across roads, urban development, water infrastructure, and industrial construction mitigates sector-specific risks.
Pre-Qualification and Technical Accreditation: Empanelment with key government agencies like NHAI, MoHUA, and several state PWDs enables bidding on high-value projects.
In-House Engineering, Equipment & Manpower:
A self-sufficient owned equipment fleet enhances project control, safety, and cost efficiency.
Digital Operations Management: Implementation of digital tools (ERP, project dashboards) ensures efficient monitoring, billing, and project lifecycle management.
Long-Term Order Visibility: A healthy and diversified order book visibility and supports long-term planning.
Key Challenges
Despite the positive sectoral outlook, the Company faces multiple operational and external challenges:
Volatile Input Costs: Fluctuations in the prices of steel, bitumen, diesel, and other key materials impact gross margins, especially in fixed-price contracts.
Project Approval & Land Clearance Delays: Delays in obtaining land acquisition, environmental, and utility shifting approvals can disrupt project schedules and working capital cycles.
Competitive Intensity: Increasing competition from large infrastructure conglomerates and regional players puts pressure on bidding margins and project selection.
Dependence on Government Payments: Project cash flows often depend on milestone-linked disbursements by public sector clients, exposing the Company to receivables risk.
Labour Force Volatility: Intermittent skilled labour shortages, rising wage demands, and social compliance requirements pose productivity and cost risks.
Emerging Opportunities
The Company is well positioned to capitalize on the structural transformation of Indias infrastructure sector:
Government Infrastructure Push: Rising capital expenditure in roads, railways, logistics parks, water supply, and renewable energy under NIP andSector Exposure: Gati Shakti creates an expanded EPC opportunity landscape.
Urbanization & Smart City Development: Growth in urban population drives long-term demand for water, sewage, transport, and housing infrastructure areas where Manglam has a growing presence.
51
Green & Sustainable Construction: Government and multilateral focus on sustainability, ESG-linked tenders, and clean water initiatives open new sectors for Company participation.
Private Sector Capex Revival: Investment in industrial corridors, smart manufacturing, and logistics infrastructure generates non-government EPC opportunities.
Digital & Process Automation: Adoption of BIM, IoT-based asset tracking, AI in construction planning, and drone surveillance is improving execution quality and reducing inefficiencies.
Key Threats
Certain macroeconomic, regulatory, and industry-specific risks could potentially impact performance:
Regulatory & Policy Uncertainty: Changes in taxation, procurement rules, or EPC tender norms could affect bidding dynamics and project profitability.
Interest Rate and Financing Risk: Rising borrowing costs or tightening of banking norms for infrastructure lending can impact project financing and working capital availability.
Geopolitical and Supply Chain Disruptions:
Global conflicts, commodity trade restrictions, or currency volatility can inflate input costs and delay imports of key materials.
Climate Risks & Environmental Compliance: Increasing regulatory scrutiny on environmental performance, climate-related construction disruptions (e.g., floods, extreme heat), and sustainability-linked requirements may raise compliance costs.
Technology Disruption: Failure to adopt new digital technologies and modern construction practices may reduce competitiveness in future tenders.
Internal Control System and Their Adequacy
The Company has a robust internal control system in place concerning its financial statements. All transactions are duly authorized, accurately recorded, and reported to the management. It adheres to all relevant Accounting Standards for maintaining its books of accounts and preparing financial reports. The internal auditor regularly reviews and evaluates these controls to ensure compliance with the Companys established policies. Overall, the Company maintains appropriate systems and procedures that are well-suited to the scale and nature of its operations.
Risk Management
The company actively monitors a range of external and operational risks that influence its performance, particularly as an export-driven industrial packaging company. Foreign exchange risk is a key area of focus due to the companys significant managed through a clearly defined policy, overseen directly by senior leadership and supported by external advisors, with regular reviews to guide hedging and pricing strategies.
To address raw material risks especially fluctuations polypropylene prices the company has diversified its procurement base from a few concentrated suppliers a broader mix of domestic and international vendors. This shift enables more competitive pricing and reduces dependence on any single source.
Seasonal and labour-related challenges are also factored into operational planning. The company acknowledges that the April June quarter typically experiences lower utilization due to climate conditions, harvest season, and reduced workforce availability in North India. Additionally, the company continues to manage freight and shipping-related risks, as global disruptions have had a direct impact on working capital cycles and delivery timelines. These areas are monitored closely to ensure business continuity and responsiveness across its global customer base.
Human Resources
The company recognizes its workforce as a vital pillar its operations, particularly given the labour-intensive nature of its manufacturing processes. The companys shift in strategic focus from fabric sales to finished FIBC conversion has increased its dependence on semi-skilled and skilled manpower. Management has highlighted that even modest increases in FIBC revenue require proportionate additions to headcount, reflecting the skill orientation of the production process.
Seasonal labour dynamics continue to influence operational efficiency,
June quarter. This cyclical pattern is well understood and factored into production planning and resource allocation.
As of March 31, 2025, the company has 298 number of employees.
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