Marc Technocrats Ltd Management Discussions

ANNEXURE- III

MARC TECHNOCRATS LIMITED MANAGEMENT DISCUSSION & ANALYSIS REPORT (FY 2025-26)

INDUSTRY STRUCTURE & DEVELOPMENTS

The Engineering Consultancy, Project Management Consultancy (PMC), Infrastructure Support Services and Technical Services sector in India continued to witness robust growth during FY 2025-26. Government initiatives such as National Infrastructure Pipeline (NIP), PM Gati Shakti, Smart Cities Mission, Industrial Corridors, and increased capital expenditure by both public and private sectors have created significant opportunities for engineering and consultancy companies.

The Companys business model is aligned with the growing demand for technical consultancy, project execution support, engineering services, survey activities, infrastructure management and allied services. The management remains optimistic about the long-term growth prospects of the sector.

The Company continues to monitor emerging industry trends, technological advancements and policy developments to enhance its competitiveness and deliver sustainable value to its stakeholders.

BUSINESS OVERVIEW

MARC TECHNOCRATS LIMITED is engaged in providing engineering consultancy, project management consultancy, technical advisory services, survey-related activities and allied infrastructure support services. During the year under review, the Company successfully expanded its business operations, strengthened customer relationships and enhanced its execution capabilities.

The Company completed its Initial Public Offer (IPO) during the year, resulting in enhanced capital base, improved financial strength and greater visibility in the marketplace.

SEGMENT-WISE / SERVICE-WISE PERFORMANCE

The Company primarily operates in the business of Engineering Consultancy, Project Management Contracts (PMC), Technical Advisory Services, and Infrastructure Support Services, Project Supervision Services, Prebid advisory Services, Detailed Engineering Design, Third Party Quality Control, Material testing and Geotechnical Investigation, Feasibility Studies and Detailed Project Reports and Engineering Surveys.

During the financial year under review, Engineering Consultancy and Project Management Consultancy continued to contribute the major share of the Companys revenue. The Company also strengthened its presence in technical advisory assignments, infrastructure support services and survey-related projects across various sectors.

The management continues to focus on expanding service offerings, improving operational efficiencies and increasing its presence across government, public sector and private infrastructure projects. As the Company presently operates in a single reportable business segment, separate segment reporting is not applicable under the applicable Accounting Standards.

IPO AND CAPITAL STRUCTURE

During the financial year, the Company successfully completed its Initial Public Offer (IPO) and issued 36,69,600 Equity Shares. Consequently, the paid-up equity share capital increased from 41,364.38 Lakhs to 41,731.34 Lakhs.

The successful completion of the Initial Public Offer (IPO) has significantly strengthened the Companys capital structure, enhanced its net worth, improved liquidity and increased its visibility and credibility in the capital market. The funds raised through the IPO will support the Companys growth strategy by enabling investment in business expansion, strengthening execution capabilities, augmenting working capital, enhancing operational efficiencies and pursuing new business opportunities in line with the objects of the Issue. The strengthened financial position also provides greater flexibility to capitalize on future growth opportunities and create longterm value for stakeholders.

Pending utilization, unutilized IPO proceeds amounting to 430.89 Crores have been invested in fixed deposits, current accounts and permitted investment instruments in accordance with the objects stated in the Prospectus and applicable regulatory requirements.

OPPORTUNITIES

The Company expects continued growth opportunities arising from:

• Expansion of infrastructure and industrial projects across India.

• Increased government spending on transportation, urban infrastructure and industrial development.

• Rising demand for engineering consultancy and project management services.

• Growing requirement for technical surveys, project monitoring and execution support.

• Opportunities arising from digitization and technology- driven infrastructure management.

• Availability of IPO proceeds to support future business expansion.

Management remains confident of sustaining growth momentum through operational excellence, strategic business development and prudent financial management.

OUTLOOK

The outlook for the Engineering Consultancy and Infrastructure Services sector remains positive, supported by continued Government emphasis on infrastructure development, urbanisation, industrial growth and increased public capital expenditure.

The Companys strengthened capital base following the successful Initial Public Offer (IPO) provides financial flexibility to pursue future growth opportunities, expand geographical presence, diversify its client base and enhance execution capabilities.

The management remains focused on sustainable growth through prudent financial management, technological adoption, operational excellence and customer-centric service delivery while maintaining strong corporate governance standards.

Management remains confident that the Companys strong order execution capabilities, experienced management team and healthy financial position will support long-term sustainable growth and value creation for all stakeholders.

RISKS & CONCERNS

The Company continuously evaluates risks associated with its operations and has established suitable mitigation mechanisms.

Major risks include:

a. Project execution delays.

b. Regulatory and compliance risks.

c. Competition from established industry participants.

d. Client concentration and collection risks.

e. Inflationary pressure on operating costs.

f. Economic slowdown affecting infrastructure spending.

g. Human resource retention and skill availability.

h. Cyber Security and Information Technology Risks: Increasing dependence on information technology systems exposes the Company to risks relating to cyber security, data protection and system disruptions. The Company continues to strengthen its IT infrastructure and security measures to mitigate such risks.

i. Changes in Government Policies and Regulatory Framework: The Companys business is influenced by changes in Government policies, regulatory requirements, taxation laws and infrastructure development policies. Any significant changes may have an impact on business operations and profitability.

j. Interest Rate Fluctuations and Macroeconomic Risks: Changes in interest rates, inflation, foreign exchange movements, geopolitical developments and overall macroeconomic conditions may affect project investments, business sentiment and operational performance.

k. Environmental, Social and Sustainability Risks: Increasing focus on environmental sustainability, climate-related regulations and ESG practices may require changes in business processes and compliance requirements. The Company continuously evaluates such developments and takes appropriate measures to ensure sustainable business practices.

The Company has established a structured risk management framework for identification, assessment, monitoring and mitigation of business risks. The Board of Directors and Senior Management periodically review the risk management framework fo identify emerging risks and ensure that appropriate mitigation measures are implemented in a timely manner. The Company continuously monitors its internal and external business environment to strengthen its resilience and support sustainable long-term growth.

INTERNAL CONTROL SYSTEMS

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

Internal controls are designed to ensure:

a. Protection and safeguarding of assets.

b. Accuracy and reliability of accounting records.

c. Compliance with statutory requirements.

d. Prevention and detection of frauds and errors.

e. Efficient utilization of resources.

The Audit Committee regularly reviews internal financial controls, audit observations and corrective actions undertaken by the management.

The Company has established adequate Internal Financial Controls over Financial Reporting (IFC) commensurate with the nature and size of its business. These controls are periodically evaluated and tested to ensure operational effectiveness, compliance with applicable laws and safeguarding of assets. No material weakness in the internal control system was observed during the year.

FINANCIAL HIGHLIGHTS

The Companys key financial indicators remained strong during FY 2025-26:

Particulars	FY 2025-26	FY 2024-25
Revenue from Operations (? Lakhs)	6,972.82	4,787.30
Profit After Tax (? Lakhs)	1,056.35	757.53
EPS (?)	7.23	5.55
Net Profit Ratio	12.96%	13.40%
Current Ratio	1.90	3.24
Debt Equity Ratio	0.00	0.03

The substantial improvement in Debt-Equity Ratio reflects strengthening of shareholders funds following the IPO and reduction in leverage.

SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS

Particulars	FY 2025-26	FY 2024-25	Change	Explanation
Current Ratio	1.90	3.24	41.41%	Due to increase in Current Assets.
Debt Equity Ratio	0.00	0.03	86.40%	Due to increase in Shareholder equity during the year after issue of Shares in IPO.
Net Profit Ratio	12.96%	13.40%	3.26%	Due to increase in Turnover and profits during the year.
Return on Net Worth	20.81%	35.60%	41.55%	Due to increase in Shareholders equity during the year after issue of shares in IPO.

The changes in the above financial ratios are primarily attributable to the successful completion of the Companys Initial Public Offering during the financial year, which resulted in a significant increase in equity capital and shareholders funds. These changes are structural in nature and reflect the strengthened financial position of the Company rather than any deterioration in its operating performance.

Except for the above ratios, there were no significant changes (i.e., changes of 25% or more) in the other key financial ratios requiring explanation under Regulation 34(3) read with Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

WORKING CAPITAL MANAGEMENT

The Company maintained a healthy liquidity position during the year.

The Current Ratio stood at 1.90 times as compared to 3.24 times in the previous year. The movement in the ratio was primarily attributable to an increase in current liabilities arising from the expansion of business operations. Nevertheless, the Company continues to maintain sufficient current assets to meet its shortterm financial obligations.

Cash and Bank Balances increased significantly owing to IPO proceeds and improved operational cash generation. Trade receivables stood at Rs1,242.63 Lakhs as on March 31, 2026 and continue to be actively monitored by management.

The Company continues to maintain an efficient working capital cycle through effective receivable management, prudent cash flow planning and disciplined financial management. The management regularly reviews liquidity and cash flows to ensure adequate availability of funds for operational requirements and future business expansion.

TECHNOLOGY & DIGITAL INITIATIVES

The Company continues to leverage digital technologies to improve project execution, operational efficiency and customer service. The management remains committed to adopting modern engineering tools, digital project monitoring systems and technology-enabled business processes to enhance productivity and strengthen internal controls.

HUMAN RESOURCES

The Company firmly believes that its employees are its most valuable asset and continues to invest in human capital through training, skill enhancement, leadership development and professional growth initiatives. The Company promotes a performance-driven work culture founded on integrity, innovation, teamwork, equal opportunity, employee engagement and workplace safety.

Industrial relations remained cordial throughout the year and there was no significant disruption in operations due to labour- related issues. As on March 31, 2026, the Company had 193 employees on its rolls. The management remains committed to fostering a safe, inclusive and motivating work environment that encourages continuous learning and sustainable growth.

CORPORATE SOCIAL RESPONSIBILITY

In accordance with Section 135 of the Companies Act, 2013, the Company spent Rs12.40 Lakhs towards CSR activities during FY 2025-26 against the prescribed CSR obligation of Rs12.20 Lakhs. CSR initiatives were undertaken in the areas of social welfare, health, sports, rural development and education. The company remains committed to creating sustainable value for society through impactful CSR initiatives in accordance with its CSR Policy and the provisions of the Companies Act, 2013.

CAUTIONARY STATEMENT

Certain statements contained in this Management Discussion and Analysis Report describing the Companys objectives, expectations, estimates, projections and outlook may constitute "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, market developments, competition, regulatory changes and other risks beyond the control of the Company.

Readers are cautioned not to place undue reliance on these forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required under applicable laws.