THE ECONOMIC SCENARIO:
Global Scenario:
The global economy in FY 2025-26 continued to face a challenging and uncertain environment marked by persistent geopolitical tensions, evolving trade dynamics, and uneven growth trajectories across regions. While inflationary pressures moderated compared to previous years, central banks in major economies maintained a cautious stance on monetary policy, with interest rates remaining relatively elevated to ensure price stability and anchor inflation expectations.
Global growth remained moderate, with the International Monetary Fund (IMF) estimating world GDP growth in the range of approximately 2.9% to 3.1%, reflecting resilience in some advanced economies but continued weakness in others. The United States demonstrated relative economic strength supported by robust consumption and a stable labor market, although higher borrowing costs and fiscal concerns moderated the pace of expansion. The Eurozone experienced subdued growth amid ongoing energy security concerns and weak industrial output.
Geopolitical developments continued to exert significant influence on the global economic landscape. The prolonged Russia-Ukraine Conflict and escalating tensions in the Middle East, particularly around key energy supply routes, contributed to volatility in crude oil prices and heightened uncertainty in global markets. These disruptions impacted global supply chains, increased freight and insurance costs, and led to periodic spikes in commodity prices, especially crude oil and natural gas.
Chinas economic recovery remained uneven, with structural challenges in its real estate sector, subdued domestic consumption, and export slowdowns continuing to weigh on growth. Policy interventions by Chinese authorities provided some support; however, investor sentiment remained cautious. Global trade and investment flows were influenced by a trend toward supply chain diversification and China+1 strategies, benefiting emerging economies such as India. At the same time, currency markets witnessed volatility, with the US Dollar remaining relatively strong against most currencies, impacting capital flows and external balances in emerging markets.
Crude oil prices remained range-bound but volatile due to geopolitical risks and production decisions by major oil-producing nations, adding to inflationary pressures for import-dependent economies. Meanwhile, global infrastructure investment continued to focus on sustainable and resilient assets, including renewable energy, urban infrastructure, and affordable housing. However, elevated financing costs and tighter liquidity conditions posed challenges for project execution and funding.
Despite global uncertainties, India continued to stand out as one of the fastest-growing major economies, supported by strong domestic demand, policy reforms, and increased public capital expenditure. The country remained an attractive destination for global investors, particularly in infrastructure and real estate sectors, positioning itself as a key driver of global growth in the medium term.
Domestic Situation in India:
India continued to remain one of the fastest-growing major economies globally in FY 2025-26, supported by strong macroeconomic fundamentals, resilient domestic demand, and sustained policy support. Despite global uncertainties, the Indian economy demonstrated stability, underpinned by prudent fiscal management, a robust banking system, and continued focus on capital expenditure. As per estimates by the Reserve Bank of India and the Government of India, the countrys GDP growth is expected to remain in the range of approximately 6.5%-7.0% over the medium term. While growth moderated slightly compared to previous high post-pandemic levels, it remained among the highest globally, driven by public infrastructure spending, private consumption, and gradual recovery in private sector investments.
Key drivers of economic growth included the Governments continued thrust on infrastructure development through initiatives such as the PM Gati Shakti and the National Infrastructure Pipeline, which enhanced multimodal connectivity and logistics efficiency.
Increased allocations toward housing and urban development under schemes like the Pradhan Mantri Awas Yojana (PMAY - Urban and Rural) continued to support demand for affordable housing, particularly in Tier 2 and Tier 3 cities. Indias real estate and infrastructure sectors benefited from policy continuity, regulatory reforms, and improved ease of doing business. Government initiatives promoting Housing for All, urban transformation, and smart city development continued to create a conducive environment for sectoral growth. Increased adoption of technology, sustainable construction practices, and participation of private players under Public-Private Partnership (PPP) models further strengthened project execution capabilities.
On the macroeconomic front, inflation remained within the tolerance band of the Reserve Bank of India, supported by effective supply-side interventions and monetary policy measures, although periodic pressures from food and fuel prices persisted. Interest rates remained relatively stable, balancing the need for growth with inflation control. Indias strong domestic consumption base, which contributes significantly to overall economic activity, continued to act as a key growth driver. Indias external position remained stable, with healthy foreign exchange reserves providing a buffer against global volatility. The country continued to attract steady foreign direct investment (FDI), crossing the milestone of over US$ 1 trillion in cumulative inflows, reflecting sustained investor confidence. While foreign portfolio investment (FPI) flows remained volatile due to global financial conditions, long-term investment outlook for India remained positive.
Key economic indicators reflected steady progress:
Foreign exchange reserves remained robust, supporting currency stability.
Goods and Services Tax (GST) collections continued to show strong growth, indicating improved formalization of the economy.
Merchandise exports remained stable despite global demand challenges, while services exports continued to perform strongly.
Inflation trends moderated compared to earlier highs, staying broadly within policy targets.
Industrial activity showed gradual improvement, led by manufacturing and infrastructure-related sectors.
India also continued to improve its global competitiveness, including progress in innovation and digital adoption. Government-led initiatives such as Make in India, Digital India, Startup India, and Production Linked Incentive (PLI) schemes further strengthened the manufacturing ecosystem and encouraged domestic and foreign investments.
Additionally, new and ongoing initiatives such as PM Vishwakarma Scheme, Pradhan Mantri Suryodaya Yojana, and the AMRUT Mission continued to enhance inclusive growth, urban infrastructure, and energy transition. Nominal GDP continued to expand steadily, reflecting both real growth and inflationary factors, while real GDP growth moderated to a sustainable level after strong post-pandemic recovery. Overall, Indias economic outlook remained positive, supported by structural reforms, demographic advantages, and continued government focus on infrastructure-led development.
India is expected to remain the fastest-growing major G20 economy, with GDP growth projected at around 6.7% in 2025 and 6.2% in 2026, significantly ahead of global peers. This strong performance reflects the resilience of Indias domestic demand, continued policy support, and sustained infrastructure-led growth. Other emerging economies such as Indonesia and China are projected to grow at moderate levels of around 4%-5%, while advanced and other G20 economies are expected to witness relatively lower growth rates. The overall G20 average growth remains subdued at below 3.5%, indicating a clear divergence between India and global economic trends. Indias growth leadership underscores its increasing role as a key driver of global economic expansion. This sustained momentum also highlights the strength of structural reforms, investment activity, and macroeconomic stability in the country.
Indias economy has demonstrated notable resilience despite ongoing geopolitical tensions, particularly the Russia-Ukraine Conflict and instability in the Middle East, which have contributed to volatility in global crude oil prices and supply chain disruptions. As a major importer of crude oil, India faced periodic inflationary pressures and external account challenges; however, proactive policy measures, diversified sourcing of energy imports, and strategic reserves helped mitigate the impact. The country also benefited from calibrated actions by the Reserve Bank of India in managing inflation and currency stability. Strong domestic demand, robust foreign exchange reserves, and continued government focus on infrastructure and reforms enabled India to maintain stable growth momentum, positioning it as one of the most resilient economies amid global uncertainty.
Industry Scenario - Infrastructure Sector:
The infrastructure sector continues to play a pivotal role in driving Indias economic growth, acting as the backbone for industrial development, urbanization, and overall socio-economic progress. The sector encompasses key segments such as transportation (roads, railways, ports), energy, water and sanitation, and urban infrastructure, all of which are critical enablers for sustained economic expansion. A well-developed infrastructure framework enhances productivity, improves connectivity, and stimulates growth across allied sectors such as real estate, construction, logistics, and manufacturing.
The Government of India has maintained a strong focus on infrastructure development as a core pillar of its growth strategy. Flagship initiatives such as the PM Gati Shakti and the National Infrastructure Pipeline (NIP) continue to drive integrated and multi-modal infrastructure development across the country. These initiatives aim to improve logistics efficiency, reduce costs, and accelerate project execution through better coordination among various stakeholders. Complementary programs like Smart Cities Mission and affordable housing initiatives have further strengthened urban infrastructure and real estate development.
In line with its long-term vision, the Government has significantly enhanced capital expenditure on infrastructure. The Union Budget 2025-26 continued its strong emphasis on public capex, building on the previous years allocation of ?11.5 lakh crore, reflecting sustained commitment towards infrastructure-led growth. Investments under the NIP span multiple sectors, including renewable energy, roads and highways, urban infrastructure, and railways, with a growing emphasis on
Indias infrastructure pipeline remains robust, with thousands of projects under various stages of implementation across sectors. Transportation continues to receive a significant share of investments, particularly in roads, highways, and railways, aimed at improving connectivity and boosting economic efficiency. The logistics sector is also witnessing rapid growth, supported by policy initiatives to reduce logistics costs and improve Indias global competitiveness.
Furthermore, the Governments initiatives such as Make in India and Production Linked Incentive (PLI) schemes are driving manufacturing growth, thereby increasing demand for industrial and logistics infrastructure. Increasing private sector participation through Public-Private Partnership (PPP) models and rising foreign investments are also contributing to the sectors expansion.
sector is poised for sustained growth, supported by strong policy push, increasing investments, and a focus on integrated and sustainable development. This continued emphasis is expected to play a crucial role in enhancing Indias economic productivity, improving quality of life, and positioning the country as a global economic powerhouse.
Affordable Housing:
The affordable housing segment in India is expected to continue its steady growth trajectory in FY 2025-26, supported by strong government focus, favorable policy measures, and sustained demand from the economically weaker and middle-income population. The segment, which includes housing for the Economic Weaker Section (EWS), Low Income Group (LIG), and Middle Income Group (MIG), remains a key priority area under the national housing agenda.
The sector is structurally supported by Indias rapid urbanization trend, with a significant shift of population from rural to urban areas in search of employment and improved living standards. It is estimated that urban India will witness a substantial increase in population over the next decade, further intensifying the demand for affordable housing solutions. Despite strong growth in the real estate sector, a significant housing gap continues to persist, particularly in the affordable segment.
According to government estimates, the urban housing shortage remains substantial and is expected to increase further in the coming years due to rising migration and urban expansion. This structural demand-supply gap continues to provide long-term growth opportunities for developers focused on cost-effective and mass housing projects.
The Government of India has consistently strengthened its commitment to Housing for All through flagship initiatives such as the Pradhan Mantri Awas Yojana (PMAY - Urban and Rural). The scheme has played a crucial role in promoting home ownership among lower and middle-income households through interest subsidies, financial assistance, and institutional support. In addition, reforms such as reduced GST rates on affordable housing and enhanced credit-linked subsidy schemes have further improved affordability and accessibility.
Urbanization, rising disposable incomes, and increased formalization of the economy have also supported demand for affordable housing. However, access to affordable home financing remains a critical factor, especially for economically weaker sections and migrant populations moving to urban centres.
Urbanization, rising disposable incomes, and increased formalization of the economy have also supported demand for affordable housing. However, access to affordable home financing remains a critical factor, especially for economically weaker sections and migrant populations moving to urban centres. This highlights the continued need for policy support and innovative financing mechanisms to bridge the housing gap.
Overall, the affordable housing sector is expected to remain a key growth driver for the real estate industry, supported by strong demographic trends, government incentives, and sustained urban development initiatives. The segment continues to present significant long-term opportunities for developers aligned with mass housing and value-driven infrastructure development.
Key Affordable Housing Categories & Income Limits (2026):
EWS (Economically Weaker Section): Annual income up to ?3,00,000.
LIG (Low Income Group): Annual income ?3,00,001 - ?6,00,000.
MIG (Middle Income Group): Annual income ?6,00,001 - ?12 lakh or up to ?18 lakh for specific schemes.
In a transformative step that sought to ensure ease of living for the urban poor and dignified housing for urban migrants, Pradhan Mantri Awas Yojana-Urban (PMAY-U) was launched on June 25, 2015. The Mission addresses the urban housing shortage among the Economically Weaker Section (EWS) / Low Income Group (LIG) and Middle-Income Group (MIG) categories including the slum dwellers by ensuring a pucca house to all eligible urban households.
To ensure good quality of house construction, training and certification programmes have been launched pan-India to train rural masons to construct good houses using locally available materials. The scheme is being implemented in urban and rural areas. In urban areas, it is implemented by the Ministry of Housing and Urban Affairs whereas in rural areas, it is implemented by the Ministry of Rural
Industrial Parks - Warehouse & Logistics:
The industrial parks and logistics sector has gained greater strategic importance in recent years due to persistent disruptions in global supply chains caused by geopolitical tensions, including the ongoing Russia-Ukraine Conflict and instability in the Middle East. These events have led to volatility in energy prices, rerouting of trade flows, and periodic disruptions in the movement of goods across key global corridors, highlighting the risks of overdependence on distant and concentrated supply chains.
As a result, global economies and multinational corporations are increasingly adopting supply chain diversification strategies, including China-plus-one and regional sourcing models. This structural shift has significantly increased the demand for resilient, localized, and well-integrated logistics infrastructure in emerging markets like India. Industrial parks, modern warehousing facilities, and multimodal logistics hubs are now seen as critical enablers to ensure supply chain continuity, cost efficiency, and operational flexibility.
India, with its strategic geographic location, large domestic market, and improving infrastructure ecosystem, is well positioned to benefit from this realignment. The growing emphasis on domestic manufacturing under initiatives such as Make in India further strengthens the need for robust logistics and industrial infrastructure. Overall, the sector has evolved from being a supporting function to becoming a core pillar of economic resilience, enabling countries and businesses to better withstand global disruptions and maintain stable trade and supply networks.
The warehousing, industrial, and logistics (WIL) sector continues to play a critical role in supporting Indias long-term growth ambitions, particularly in its journey towards becoming a multi-trillion-dollar economy. Post-pandemic, the sector has maintained strong momentum, supported by structural shifts driven by the rapid expansion of e-commerce, increasing formalization of supply chains, and accelerated adoption of digital technologies. As a result, logistics has emerged as a key enabler of efficiency across industries, with warehousing becoming a central component of modern supply chain infrastructure.
The sectors growth is strongly supported by favourable macroeconomic conditions, sustained infrastructure development, and government-led reforms aimed at improving ease of doing business. Initiatives such as the development of dedicated freight corridors, expansion of national highway and rail networks, and the rollout of digital platforms like the National Logistics Portal have significantly improved connectivity, transparency, and operational efficiency. In addition, the National Logistics Policy aims to substantially reduce logistics costs and enhance Indias global competitiveness over the medium term.
Rising domestic consumption, rapid urbanization, and the expansion of organized retail and e-commerce are further driving demand for modern warehousing facilities. The emergence of Direct-to-Consumer (D2C) models and omni-channel retailing has increased the need for strategically located warehouses to enable faster last-mile delivery and efficient inventory management. Consequently, Grade A warehouses, characterized by advanced infrastructure and technology integration, are witnessing strong demand, while older assets are gradually being upgraded or replaced.
The sector has also attracted significant institutional and foreign investment, reflecting strong investor confidence in Indias logistics and industrial real estate segment. Industrial parks and logistics hubs are increasingly emerging as preferred investment destinations, particularly in Western India, including Gujarat and Maharashtra, due to their strong connectivity and industrial ecosystems. Growing participation of global investors and private equity funds further highlights the sectors long-term potential.
Overall, the industrial parks and logistics sector is expected to remain a key growth driver, supported by policy reforms, infrastructure expansion, technological advancement, and increasing integration of Indias supply chain network with global trade systems.
NILA INFRASTRUCTURES - The Company
As a pure-play Urban Infrastructure contractor/developer, your Company works on developing urban infrastructure projects by leveraging its core competency. The management is optimistic about the growth of our economy in general and construction sector in particular. Your Company has on hand meaningful Affordable Housing development orders to the tune of the highest order-book in the history of your Company and providing a visibility of a multi-year growth. Hence, it envisages that on back of enhanced pre-qualifications/bidding capacities, its business will grow sustainably. There are lakhs of people in India who do not have a home of their own, inducing the government to plan more aggressively to provide houses to these people who dont have housing at this point of time.
Your Company has also built significant PPP based order-book where the remuneration is superior for a long- term sustainable growth. Your Company is now a sort of a Specialist in Affordable Housing Infrastructure and pure-play Urban Infrastructure player.
Strategic Focus of NILA:
Unique Business Model - Diversified and Flexible:
Your company has developed a unique business model of construction contracts on EPC/LSTK, EPC+PPP and PPP mode for Affordable Housing projects as well as Urban Infrastructure Projects. Your Company has successfully leveraged the construction expertise to grow into construction contracts from government authorities and reputed corporates. Your Company holds commercial properties in the prime location of Ahmedabad and such lease rent ensures continued revenue.
This diversified business model for Transforming Lives has shown great strength in the past years of challenging business environment. Leasing ensures steady cash flow income while construction contracts of Government assure timely and confirmed recovery of dues, whereas the PPP projects ensure better profitability margins. Your Company has developed in-house expertise in the entire gamut of construction and execution - including design, planning & estimation, project preparation, project execution, interior designing, integration of project management.
Project Selection and Execution:
Your Companys comprehensive evaluation of opportunities in infrastructure projects includes the following parameters:
Principal: Constitution, financial strength, bureaucratic structure, involvement of any bilateral/multilateral agency, track record on other projects, contract management strength, appropriateness of design for local market, etc.
Pre-development: Financing flexibility to fund the early design work, community/political participation/ opposition, government stability over the life of the project, environmental problems, site selection and regulatory approval delays, land acquisition, etc.
Finance: Commercial viability of the project, capacity of the lender to evaluate and speed in providing the credit lines, repayment mechanism, credit availability on viable terms, etc.
Construction: Viability of the design/technology, availability of labour and raw-material, outlook of raw-material cost, contractor failure, developers access to funds on a timely basis for construction, etc.
Market: Local economic conditions, demand-supply outlook, interest/inflation rate scenario, etc.
Throughout this process, your Company has to identify and mitigate inherent risks that can adversely affect the project. It is broadly evaluated in three parts:
Preliminary considerations, market analysis, financial analysis, tender analysis, and strategic marketing;
Site due diligence, tender due diligence, entitlements, permissions, etc.; and
Planning and design, construction management, operations and property management. Hence, with sufficient due-diligence the project is bided and execution is carried-out accordingly by your Company. Your Companys Quality Management System is ISO 9001: 2015 accredited by INTERCERT that include Project Management, Site Development and Construction activities for Infrastructure, Industrial, Residential and Commercial projects.
Project Management and Monitoring:
Your Company has adopted an integrated system for planning, scheduling, monitoring and control of the approved project under implementation. To coordinate and synchronise all the support function of Project Management it relies on an Integrated Project Management Control System which integrates its project management, contract management and control function addressing all stages of project implementation from concept to commissioning.
All projects have project monitoring centres which facilitate monitoring of key project milestones and also act as a Decision Support System for the management. It is used as integrated web based collaborative system to facilitate consolidation of project related issues and its timely resolution. Various features for information delivery of ERP facilitate project tracking, issues resolution and management interventions on a regular basis. Integrated ERP platform for monitoring and controlling of critical project activities spread across various functions - projects, contracts, finance and execution. This helps in decision support through timely identification of critical input and provides a holistic approach towards project implementation and major project milestones.
Financial Resources:
The foremost source of finance of your Company has traditionally been internal accruals and borrowings from banks. Your Company has made financial arrangement with banks and financial institutions for its various long- term and working capital requirements. During the year your Company has not only successfully contracted/ renewed substantial credit limits at competitive terms, but also pertinently tuned the requisite credit limits. Such measures will enhance the overall financial flexibility.
Joint Ventures:
In order to share risk and cost, experience and expertise your Company develops certain projects in association with other renowned corporates and has formed associates and joint ventures. This provides a larger scale to your Company to work on specific operations. In such a scenario, the construction work is invariably carried- out by your Company. Your Company looks upon them as partners in its progress and shares with them the rewards of growth. It is your Companys endeavour to build and nurture strong links with the trade based on mutuality of benefits, respect for and cooperation with each other, consistent with consumer interests.
Opportunities and Outlook:
The Company continues to focus its operations in the State of Gujarat, which remains one of the most dynamic and high-growth regions in India, often regarded as the growth engine of the nation. Gujarat has consistently demonstrated strong economic performance, with its Gross State Domestic Product (GSDP) witnessing sustained growth over the years and significantly outperforming the national average. The states economy continues to benefit from robust industrial development, strong infrastructure base, and proactive policy support from the government.
Gujarat is one of Indias most industrially advanced states, with a well-established and diversified industrial ecosystem spanning sectors such as chemicals, petrochemicals, pharmaceuticals, textiles, engineering, cement, ceramics, gems and jewellery, and dairy. The states industrial strength is further supported by a large base of manufacturing units, including a significant number of large industries as well as a strong MSME network, which together form the backbone of its economic activity.
The state also continues to maintain a strong position in exports, supported by well-developed ports, logistics infrastructure, and connectivity to global markets. Its leadership in various national rankings, including export readiness, reflects the strength of its industrial base and business-friendly environment. Gujarats strategic location, policy stability, and investor-friendly ecosystem make it a preferred destination for infrastructure, industrial parks, logistics, and real estate development.
Going forward, continued government focus on industrial corridors, logistics infrastructure, and urban development, along with rising private and foreign investments, is expected to create significant opportunities in infrastructure-led growth sectors. The combination of strong economic fundamentals, expanding industrial activity, and increasing demand for modern infrastructure positions Gujarat as a key growth driver for the Companys future prospects.
According to recent estimates and DPIIT trends, Gujarat continues to attract strong foreign direct investment (FDI) inflows in FY 2025-26, supported by its diversified industrial base, strong logistics ecosystem, and policy stability. The state is estimated to have received FDI inflows in the range of US$ 5-6.5 billion during FY26 (till latest available period), maintaining its position among the top FDI destinations in India. Cumulative inflows continue to grow steadily, reflecting sustained global investor confidence in Gujarats manufacturing, infrastructure, renewable energy, and logistics sectors. The state remains a key beneficiary of global supply chain diversification, with increasing investments flowing into industrial parks, warehousing, green energy, and export-oriented manufacturing clusters. Gujarat continues to rank among the top five states in India in terms of FDI inflows, alongside Maharashtra, Karnataka, and Tamil Nadu. Overall, the states strong infrastructure base, proactive governance, and industrial-friendly policies continue to reinforce its position as a preferred investment destination in FY 2025-26.
Affordable Housing Opportunities:
Affordable housing continues to be one of the most significant structural growth segments in Indias real estate and infrastructure landscape in FY 2025-26, driven by the fundamental need to provide safe, adequate, and dignified housing across all income groups. Housing is not only a basic human requirement but also a critical enabler of social stability and economic development. Despite sustained policy support, the sector continues to face affordability challenges due to rising land prices, escalation in construction material costs, and increasing labour and infrastructure expenses, which collectively impact project viability, particularly in urban areas.
The demand for affordable housing is primarily being driven by Indias rapid urbanization and large-scale migration towards cities in search of employment and better living standards. As urban populations continue to expand, pressure on existing housing infrastructure has intensified, leading to a widening gap between demand and supply, especially in the economically weaker and lower-income segments. This structural gap presents a long-term opportunity for developers focused on cost-effective, mass housing solutions supported by enabling policy frameworks.
A key growth driver of the sector is the steady expansion of Indias middle-income population, which is increasingly aspiring for home ownership in urban and semi-urban locations. Improved income levels, greater financial inclusion, and easier access to housing finance have significantly enhanced purchasing capacity within this segment. In parallel, the expanding working-age population is expected to further accelerate housing demand over the medium to long term, particularly in major employment hubs and emerging industrial corridors.
Government support continues to play a pivotal role in strengthening the affordable housing ecosystem. Policy initiatives aimed at Housing for All, along with interest subsidies, credit-linked support schemes, and regulatory reforms, have improved accessibility and affordability for end users. Schemes under the Pradhan Mantri Awas Yojana continue to remain central to this mission, encouraging both public and private participation in mass housing development.
However, the sector continues to face structural constraints. Limited availability of affordable land parcels in urban locations, coupled with rising input costs such as cement, steel, and other construction materials, continues to exert pressure on project economics. These challenges necessitate greater adoption of innovative construction technologies, efficient project planning, and policy interventions to reduce overall development costs and improve execution timelines.
Overall, the affordable housing sector is expected to maintain strong long-term growth momentum in FY 2025-26, supported by favourable demographic trends, continued urban expansion, and sustained government focus on inclusive housing development. The segment remains a key driver of Indias real estate growth story and presents significant opportunities for developers aligned with mass housing and value-driven infrastructure development.
The Government of Gujarat came out with Gujarat Affordable Housing Policy 2014 had been announced vide order dated 15-01-2014 under Mukhya Mantri GRUH Yojana. It focuses on provision of housing at affordable price to Economically Weaker Section (EWS), Lower Income Group (LIG) and Middle-Income Group (MIG) urban families, The state aims to involve both public institutions as well as private developers in such projects. The policy comprises three model for development of affordable housing in Gujarat.
Model-I: Public Agency on Public Land (Green Field Development) Model-II: Private Developer on Public Land through PPP
Model-III: Private Developer on Private Land
Slum Rehabilitation in PPP
According to the Government of Gujarat about 7,00,000 families reside in slums in the urban areas of Gujarat. State Government aims to accord priority to rehabilitate such slum dweller families in-situ. Eligible slum dwellers families will be provided houses of minimum 25 sq. mtr. Carpet area with basic civic amenities free of cost in lieu of their hutments with main objectives being:
In-site rehabilitation of the slums situated on public land in urban areas of the State
Provision of pucca houses with basic amenities having two rooms, kitchen, bath room and latrine for slum dwellers families
Ownership rights of the house to the beneficiaries after 15 years
Provision of hygienic and healthy life style especially for urban poor
Qualitative improvement in socio-economic and environmental conditions of towns and cities of Gujarat
Attracting private investment by PPP for this purpose
Simple and transparent policy framework to rehabilitate slums in-situ on public land through PPP
The beneficiaries get basic civic facilities of drinking water, sewerage line, electricity connections, Anganwadi/Health Centre. The beneficiaries are responsible for payment of operational and maintenance cost, property tax and any other tax levied by LSG. The beneficiaries will be initially granted lease-hold rights for the houses allotted to them for first 15 years and thereafter will be granted ownership rights. However, the ownership of the land will remain with the LSG. The developer gets certain incentives including additional FSI, TDRs, free-hold rights on balance vacant land for development and free sale, exemption on developmental charges, relaxation in construction. Private developer is selected through established, open and transparent procedures.
Your Company is at forefront in slum rehabilitation projects in Gujarat and possesses sizable chunk of market share within the segment. Looking at the size of opportunity, the scalability of operation is very high and the Company has developed all necessary expertise to execute slum projects involving complexity of varied nature.
Redevelopment of Housing Projects
Alongside its strength in slum rehabilitation, the Company has established a growing footprint in the redevelopment of aging housing colonies, particularly those originally developed by government housing boards. Many of these developments, constructed decades ago, now require structural upgrades and modernization to meet present-day standards of safety and livability.
Such redevelopment opportunities are typically awarded through a formal tendering process conducted by housing authorities. Upon securing a project, the Company undertakes the responsibility of redeveloping the entire housing colony. This involves facilitating the temporary relocation of existing residents, usually through rental support or alternate accommodation arrangements, ensuring continuity and convenience during the redevelopment phase.
Following site clearance, the existing structures are dismantled and replaced with new, well-designed residential units that adhere to modern construction standards and regulatory requirements. These developments significantly enhance not only the living conditions of the residents but also contribute to the overall urban renewal of the surrounding locality.
From a commercial standpoint, the project structure allows the Company to develop additional saleable units over and above the rehabilitation requirement. These units are monetized in the open market, forming a key revenue stream. Depending on the project terms, the Company may also receive TDRs, which can be either utilized internally or realized through market transactions. The exact consideration varies based on project-specific parameters such as scale, location, and applicable policy framework.
With more than 3,500 housing units under execution in this segment, the Company has built a solid presence in the housing redevelopment space. Considering the large base of aging residential colonies across urban centres-particularly in Ahmedabad-this segment presents a significant long-term opportunity. Supported by its execution expertise, disciplined project management, and strong institutional relationships, the Company is well-equipped to expand this vertical and play a key role in urban renewal and housing modernization.
Urban Infrastructure:
Your Company has, over a period of time, developed a niche for itself by executing unique and pioneering projects e.g. BRTS bus-shelters, Multi-level parking facility, Slum Rehabilitation and Redevelopment, Medical college campus, etc. Through execution of such projects, your Company has built proprietary knowledge and it places your Company favourably with employers of such projects. Your Company expects that number of large sized urban infrastructure projects in Gujarat will start taking shape on the basis of investments committed vide 28,360 MoUs executed during the latest Vibrant Gujarat. In the backdrop of the announcement of GIFT, MEGA, Dholera SIR, Mega cities, Million plus cities, etc., your Company is favourably poised to replicate such experience. Apart from this, there are also other opportunities that your Company can participate into, such as:
Transportation infrastructure for better mobility through public transport, improved walkability, parking
Sewerage, drainage and water supply
Solid waste management
Social infrastructures such as parks, playgrounds and leisure spaces
Preservation of heritage precincts
Community Halls
Your Company is confident to benefit from this.
Bus Ports in PPP
A typical SRTC is a state -owned corporation for passenger transport providing bus services both interstate and intra-state. As part of this endeavour, various SRTCs have decided to develop state-of-the-art Bus Terminals with an iconic structure and design as well as modern facilities. To improve the urban transport infrastructure, SRTC will undertake development and operation & maintenance of bus terminals with commercial facilities on DBFOT basis.
SRTC normally adopts a single stage three step online tendering process for selection of the Concessionaire for award of the Project(s). GoIs guidelines for qualification of bidders seeking to acquire stakes in any public sector enterprise through the process of disinvestment apply mutatis mutandis. The selected bidder i.e. the Concessionaire is responsible for designing, engineering, financing, procurement, construction, operation and maintenance of the Project(s) under and in accordance with the provisions of a long term Concession Agreement to be entered into between the Concessionaire and SRTC.
The scope of work broadly include rehabilitation, demolition of existing bus terminals with designing, financing, construction of new bus terminals along with associated amenities & facilities, development and construction of commercial facilities and the operation and maintenance thereof of bus terminal and commercial facilities. The commercial facilities to be developed by the Concessionaire shall be available on a long-term lease basis.
Your Company has already got a couple of orders directly as well as in joint venture with other reputed corporates for Amreli and Modasa Bus Ports at Gujarat. Your Company is confident to gain positively from execution of such projects.
Health and Medical
Your Company has already executed 3,00,000 sq ft bua facility of a Medical College campus for 100 MBBS admission annually as per applicable MCI norms at Barmer, Rajasthan. This Project will provide additional opportunities to your Company into Medical and Health related construction business, which has abundant prospect more so post COVID-19 pandemic. Your Company is confident to gain positively from execution of such project. Your Company is also seriously evaluating options to provide and/or construct Health Community Centres at land allotted in consideration for slum rehabilitation at various locations in Gujarat.
Industrial and Logistics
The logistics value chain comprises three units - transportation, warehousing and administration. Transportation involves the end-to-end movement of freight from the manufacturer/retailer to the customer. This transfer can span across borders and across different modes of transport. Warehousing is the intermediate storage of goods that happens during a products journey from the factory to the consumer. Administration is supply chain management.
Indian Government has increased thrust to improve the logistics sector. Promising and futuristic Policy and Infrastructure environment for the Logistic sector exists in India today, and is creating the most encouraging impact in revolutionizing the logistics sector and taking it to the next level of evolutionary phase. The country is gradually improving its logistics positioning as seen in the LPI, wherein Indias rank has improved as mentioned earlier - also attributable to reforms undertaken by the government like the introduction of the SWIFT in the Customs Department.
The sector indeed has a potential to embrace lot more positive changes and has a long way to go. With the Logistics Sector getting Infrastructure status, the access to credit on long term basis is at competitive rates from financial institution and access to funds as ECB, as well as access long tenure funds from insurance and pension funds. Further, the implementation of GST has made way for cost and operationally efficient Hub & Spoke Model of warehousing and has shifted the end user demand and developer supply from inefficient, low quality redundant warehouses to large box, good quality Grade A warehouses. Strong demand and investment are foreseen in short to medium term.
A warehouse is a fundamental part of business infrastructure and is one of the key enablers in the global supply chain. It is the fulcrum for procurement, manufacturing and distribution services which collectively build robust economies. Earlier, the incentives to enter Indias warehousing sector was minimal for organised players as the occupiers themselves were content to engage with fringe partners offering low cost options with a network of small storage facilities near consumption centres. Multiple state and central level taxes made it sensible for companies to maintain smaller warehouses in each state. Further, this limited the focus on automation and higher throughput. This attitude of occupiers of preferring to save on costs as their sole objective is changing. There has been a gradual transition in the mind-set of occupiers to use the services offered by organised segments. A plethora of factors are driving this wave of change such as: requirement from compliance regulators (in case of the pharmaceutical industry), quality consistency assurance required by clients/ regulators, statutory penalties on non-complaint warehousing facilities, economies of scale being achieved through larger warehouses, safety and security of goods, efficiency in operations, quicker turnarounds, need for efficient warehousing designs and the advent of e-commerce and other multinational businesses that prefer to occupy only complaint facilities. This shift was further accentuated by the implementation of the GST. The warehousing market in India is highly fragmented as majority of the warehouses measure less than 10,000 square feet. Further, almost 90% of the warehousing space is controlled by unorganised players and comprises small-size warehouses with limited mechanisation. The present warehousing market in India can be categorised into three - lower stratum, middle stratum and higher stratum. The lower stratum is just godowns of the past converted into warehouses. These are old buildings, mostly Reinforced Cement Concrete (RCC) structures and their only utility is storage. The middle stratum warehouses comprise similar structures as in the lower stratum, but these are built with pre-engineered slabs and are known as pre-engineered building (PEB) structures. Their planning and functioning is very basic, like that of the lower strata, but their buildings are in a comparatively better condition. Higher stratum warehouses are the modern and massive structures that perform a lot of supply chain functions along with storage. Another practice in Indian warehousing market is the lack of attention to warehouse designing. This ignorance stems from lack of awareness and/or lack of willingness on the part of landowners and developers to cater to the requirements of end users. Most warehouses are built keeping in mind the developers perspective and not that of the end user. Hence, the focus is to save cost which results in the construction of a very basic structure for a warehouse. Such warehouses do not adhere to market standards and therefore, end users are frequently plagued with issues like lack of basic amenities and sub-standard infrastructure with lower longevity. Warehouses today take different forms - fulfilment centres, distribution centres, return centres, and even showrooms. Your Company, thus, focuses on the concept of Built-to-Suit (BTS) warehouse incorporating the designing and end user centric facilities/ amenities. Demand for large warehousing spaces is likely to see steady increase as occupiers now prefer to move out of their smaller warehouses and consolidate their activities in larger facilities, which are presently in short supply compared to the demand. This demand-supply gap is visible in the current premium commanded by organised players owning these assets.
Such opportunity has attracted global corporations in Indian warehousing sector. The governments thrust to the sector such as giving infrastructure status to the logistics sector, Make in India, Digital India, Skill India, India Brand Equity Foundation Trust, Multi-modal logistics parks, Dedicated Freight Corridors, signing of FTA/PTA, etc.; and initiatives to set up industrial corridors like DMIC, Delhi Kolkata Industrial Corridor and logistics parks have propelled the cause. Over the past few years, the government has undertaken several reforms to promote and provide an exit route to real estate investors via the REITs. Currently the market for REITs in India is at a very nascent stage and it would take time to evolve. Once the market for REITs matures, the institutional investors would be able to get a credible exit avenue to gain from their warehousing investments by listing their warehousing assets through REITs. These initiatives would go a long way in leveraging the true potential of the sector and bring down the overall costs linked to warehousing and logistics as well give credible exit opportunities to investors.
As more and more companies streamline their logistics networks, it would be observed that unorganised players or smaller organized players would consolidate or sell their assets to larger ones. The industry is expected to witness a structural shift over the next 3-5 years. The warehousing aspect in the logistics supply chain globally is going through a transformation. From being a mere storage space provider for goods, the segment is offering an array of value added services such as packaging, small scale manufacturing, cross docking, automation, algorithm based demand forecasting and distribution centres. This transition would only happen if economies of scale come into play and companies are able to consolidate their spaces and move into larger warehouses. The Indian warehousing industry, which was lagging behind its global counterparts due to its fragmented structure, would now enter the same league. Your Company is favourably located, being in the economically most vibrant state of India i.e. Gujarat, to participate in developing/constructing the industrial infrastructure. The MOU with the Kataria Group of Ahmedabad to work jointly for acquiring land and developing industrial and logistics parks, units, sheds, plots, residential colonies, and allied infrastructure at various locations situated near the upcoming automobile hub at Bechraji - about 90 kms from Ahmedabad at Gujarat; offers your Company a strategic advantage. Your Company has already delivered five (5) dormitories, commercial complex, and a couple of sizeable logistic warehouses under this initiative. Your Company is favourably placed to take the advantage of the expected spur in construction/development of new industrial facilities e.g. industrial park, warehouse/logistics Park, etc.
SEBI Notification on SM REITs:
SEBI has recently notified Small REIT structure to start real estate REIT fund starting from INR 50 Crore by issuing units to a minimum of 200 investors. These funds are to be used for acquiring and managing real estate properties, generating income for the investors of the fund. This move aims to regulate the fractional ownership industry and safeguard investor interests, incorporating both commercial and residential properties within the new framework. Your Company possesses premium land bank near Bechraji Region at Gujarat capable to develop industrial parks / warehouses and other properties which can be offered to such funds. The opportunities are ample for such structures in future.
RISK, CHALLENGES AND THREATS:
As is typical in expanding business activities your Company has become a subject to a variety of risks, challenges, and threats. It is recognised that risks are not only inherent to any business but are also dynamic in nature. Further, the Company is susceptible to certain risks arising out of various activities undertaken in the normal course of business.
There are many constraints affecting the smooth functioning of the industry in which your Company operates. The table below provides a brief overview of the most significant risks and your companys approach to managing them.
| Risk | Explanation | Mitigation Approach |
| Pandemic risk | Any epidemic/pandemic can cause interruption in the execution and business | Your Company categorizes Project sites into High, Medium and Low based on perception of such risk and the sites are mandated to be operated with strict adherence to the government/HSE guidelines. Your Company focuses to ensure the health and safety of all employees, labourers, suppliers and channel partners, while initiating stringent measures to control costs and strengthen cash flows. |
| Health and Safety at projects | Any employee, labour, worker is hurt or killed by an accident at work. | Apart from the QMS, project execution policy/processes, loss prevention programmes, insurance, etc. your Company ensures to initiate development and construction of the Project, only post identifying, defining and addressing all such risk propositions and dynamics. Your Company also ensure to share sufficient knowledge about such risks and imparts adequate training to all the employees, labourers, workers, so as to tackle such risks. Zero accident programs supported by proactive near miss reporting aims at the avoidance of all workplace accidents. |
| Risk | Explanation | Mitigation Approach |
| Health and Safety related to your Companys construction | Person or persons are hurt or injured as a result of your Companys construction failure or defect. Stability/sturdiness of the structure is compromised. | Your Company follows strict design and validation rules for all projects, and fully adheres to Principal/client/NBC specific requirements for safety and structural sturdiness. Your Company ensures implementation of detailed instructions of the Project Principal/client, Architect, Structural Engineer, PMC, etc. to ensure the fulfilment of Principal/clients requirements and your Companys quality standards. Your Companys overall approach to quality management assures conformance and performance to the highest level. |
| Interest rate risk | Your Companys interest costs are impacted by market rates. | Your Companys liquidity and borrowing are managed by professional at Senior management level. The interest rate exposure of your Company is reduced by matching the duration of investments and borrowings. |
| Credit risk | Your Companys Principals ability to pay can have an impact on the financial result. | As per your Companys policy only well-established institutions/ corporates are approved as counterparties. Exposure per counterparty is continuously monitored. |
| Liquidity risk | Acceptable liquidity levels are required in order to achieve desired financial results. | In addition to its own liquidity, your Company enjoys credit facilities with the largest Bank of the country as well as other banks/financial institutions of high-standing and good repute. |
| Competitor risk | Competitors find ways to bid at dramatically lower cost or bid to construct with better functioning/ latest technologies. | Your Company aims to be the cost and value leader, meaning striving to innovate and bring new and increased value through the innovation to our customers while at the same time working to assure that your Companys operations are world class in terms of efficiency, cost and waste avoidance. Your Company has developed proprietary knowledge to construct with different technologies, while the management provides highest importance to the Quality perspective to ensure long-term sustainable growth. |
| Economic downturn | Your Companys customers could be impacted by a major economic downturn resulting in lower demand for their respective projects. | Your Company has a highly diversified and well balanced customer base. The risk is therefore spread very widely on customer, regional and industrial sector/segment perspective. Your Companys flexible business model is capable to set operational priorities in the face of changing economic scenario. Your Company uses market data intelligence to follow and anticipate developments - allowing proactive management of changing market conditions. |
| Execution risk | It depends on various factors e.g. labour availability, raw material prices, receipt of approvals and regulatory clearances, access to utilities, weather conditions, and absence of contingencies such as litigation. | Your Company manages the adversities with cautious approach, meticulous planning and by engaging established and repute contractors. |
| Input cost fluctuations | Significant changes in raw material costs can impact the profitability. | Your Company has established a proficient supply chain which assures raw materials are purchased in a highly competitive manner. Raw material cost indexes could also be included in contractor/supplier agreements. |
| Supply chain disruption | External factors such as fires, extreme weather events, natural disasters, water stress, war or pandemic illness to mention a few, could result in disruption of supply and impact on revenue and profit. | Your Company has intentionally set up a flexible supply chain and works to avoid dependence on a single source or production location. The supply chain tracks issues e.g. extreme weather events, natural disasters, water stress, war or pandemic illness, etc. as these may impact the supply. In addition your Company focuses on working with suppliers that have adequate insurance for both production and transports. |
| Risk | Explanation | Mitigation Approach |
| Material source or type compliance risks | Your Company aims to avoid the use of hazardous substances in its products and processes; your company also strives to avoid negative social impacts within the extended supply chain. Legislations have been and are being introduced in these aspects, failure to meet with direct or customer requirements of these legislations could result in costs as well as loss of business for your Company. | Your Companys majority Principal/client are government bodies and the material used by your Company is subject to stipulations of the client, BIS specifications, laboratory checks, inspection by independent third-party e.g. Project Management Consultant, etc. Hence, environment, health and safety risks have already been considered while deciding such stipulations. |
| Labour disputes | Industrial disputes lead to industrial action with impacts your Companys ability to meet Principal/client demands. | Your Company maintains an open and positive relationship with all the employees, sub-contractors, workers, etc.; as exemplified by not a single instance of any such dispute so far. |
| Loss of a major project site | Fire, flood or natural disaster could result in the temporary loss of a construction operation, in addition to the reconstruction and remediation costs; this could put time schedule, cost and revenues at risk. | Your Companys Quality Management System is ISO 9001:2015 accredited by INTERCERT that include Project Management, Site Development and Construction activities for Infrastructure, Industrial, Residential and Commercial projects. Your Companys construction strategy aims to assure adequate insurance, so that your Company is not financially affected. While, the loss prevention programmes, protect your Companys tangible and intangible assets through active risk management. Your Company is operating on about 19 projects across Gujarat and Rajasthan. Hence, if one project is taken out of action, others could provide support. |
| Major incident at a project | A major incident during which a significant amount of local environmental damage occurs leading to fines, loss of reputation, etc. | Your Companys Quality Management System is certified to ISO 9001 : 2015 and works to assure that all such material risks are identified and effective counter-measures are implemented in order to mitigate them. This includes actions to mitigate the risk as well as emergency response plans to assure the impacts of any incident are minimised. |
| Climate change risks - extreme weather events | Extreme weather events disrupt project execution. | Requirements for emergency response plans at all sites include flood risks etc. See also mitigations mentioned hereinabove. |
| Corrupt or fraudulent actions carried out by your Companys representatives | Your Companys employee or employees fail to adhere to your Companys Code of Conduct and related policies and requirements and act in a fraudulent or corrupt manner leading to financial penalties and reputation damage. | Your Company takes a proactive approach to assure awareness of demanded ethical standards by education, compliance programmes including anti-corruption, antifraud and antitrust. The work to follow up adherence is facilitated by the whistle blower function and a risk-and incident based audit system. |
| Non-compliance with applicable laws | The diverse nature of your Companys business and operations means that your Company is required to adhere to numerous laws and regulations related to all aspects of its activities. Failure to meet these requirements could lead to legal and financial consequences as well as damage to your Companys reputation. | Your Company has put in place comprehensive and robust compliance programme which is based on your Companys Code of Conduct. The compliance programme is put in place to ensure that applicable laws and regulations are identified, understood and adhered to. |
| Risk | Explanation | Mitigation Approach |
| Legal risks relating to | In connection with the revenue | Your Company has put in place policies, procedures and |
| our business activities | of your Company and in the | training programs in order to make sure that legal risk |
| relating to our business activities are identified and that | ||
| purchase of materials and | ||
| services from our suppliers, | risk decisions are taken on the appropriate level. In | |
| consultants, etc. large potential | addition, independent professional legal counsels support | |
| liabilities may occur in case of e.g. | your Company in identifying and handling legal risks. The | |
| late delivery, delivery of defective | legal counsels work closely with the Senior management | |
| products, unfulfilled service | and provide contract drafting and negotiation support, | |
| commitments and incorrect | claim and litigation management, support, training and | |
| advice. Therefore, it is important | general advice. | |
| that all such risks are identified, | ||
| that risk decisions are taken on | ||
| the appropriate level and that | ||
| carefully worded contractual | ||
| provisions aiming at reducing | ||
| your Companys liabilities are | ||
| included in contracts. |
Your Company is operating in a business which is cyclic in nature. Timely supply of raw material like cement, steel, bricks are essential for timely completion of the projects. Shortage of labour and raw material may delay the execution of projects of your Company. The infrastructure projects are capital intensive in nature. Your Companys business requires long-term commitment of capital to meet the financial requirement of long-term projects. Further, timely availability of skilled and technical personnel is also one of the key challenges. Infrastructure projects are mainly dependent on the economic scenarios and any adverse events affecting the whole economy may deteriorate the industry as well. Any significant change in government policy in promoting Affordable Housing and/or Urban Infrastructure could pose a threat. Further, the approval process and time for projects are generally uncertain which may delay the execution and thereby affect financials.
Your Company has in place an effective risk management mechanism to identify potential risk and its timely mitigation.
CORPORATE GOVERNANCE:
Your Companys Corporate Governance philosophy is based on the total transparency, integrity, fairness, equity, accountability and commitments to the values. Your Company is committed to the best governance practices that create long term sustainable shareholder value. With the object of your Company to conduct its business in a highly professional manner and thereby enhance trust and confidence of all its stakeholders, your Company has devised a complete compliance of Corporate Governance norms. Your Company firmly believes that definite Corporate Governance leads to the optimal utilization of resources and enhances the value of the enterprise and an ethical behavior of the enterprise leads to honoring and protecting the rights of all the stakeholders. Sound Corporate Governance practices and ethical business conduct always remain at the core of your Companys value system.
The Annual Return for the FY2026 is available at the website of your Company at under the investor segment. A separate report on Corporate Governance is provided together with a Certificate from the Practicing Company Secretary of your Company regarding compliance of conditions of Corporate Governance as stipulated under Listing Regulations. A Certificate of the CEO and CFO of your Company in terms of Listing Regulations, inter alia, confirming the correctness of the financial statements and cash flow statements, adequacy of the internal control measures and reporting of matters to the Audit Committee is part of this Annual Report.
WORK CULTURE AND HUMAN RESOURCE:
The management believes in team work and a corporate environment which is self-motivating. Your Company has successfully developed a work force of highly motivated people over a period of time.
The top management is acting as the governing force in creating and maintaining the corporate work culture. The businesses that your Company engages in are primarily people-driven. Our Vision is to raise our own benchmarks with every successive endeavour and it is possible only by making every employee a fully engaged and aligned team member. Your Company continues to remain focused on reinforcing the key thrust areas i.e. being the employer of choice, building an inclusive culture, building a strong talent pipeline, building capabilities in the organization and continuing to focus on progressive employee relations policies. Accordingly, our HR policies are centred around the creation of an environment that attracts, nurtures and rewards high-calibre talent. Young engineers gain the opportunity to operate on the frontlines of technology and associate with projects of scale and complexity. We drive sustainable growth and have been instrumental in bringing in thought leadership in building strong employee relations. There is no material development in HR. Your Company continued to build on the Diversity and Inclusion agenda through building leadership capability and recognizing line managers who provide a simple, flexible and respectful work environment for their teams. Your Company is developing future leaders and having the best people practices. A structured leadership development initiative has helped to build a robust talent pipeline at all levels. Our HR organisation is well-geared towards attraction and retention of qualified/potent talent in an ecosystem that provides long-cycle professional development opportunities in various facets of civil urban infrastructure and caters to career building aspirations of talent at all levels. There are total 62 permanent employees who are working on the roll of the company as on 31 March 2026.
INTERNAL CONTROL SYSTEM:
The Board of Directors of your Company have prescribed Internal Controls for effective control system within the organisation. The Corporate Governance Policy guides the conduct of affairs of your Company and clearly delineates the roles, responsibilities and authorities at each level of its three-tiered governance structure and key functionaries involved in governance. The Code of Conduct commits management to financial and accounting policies, systems and processes. The Corporate Governance Policy and the Code of Conduct stand widely communicated across your Company at all times, and, together with the Strategy of Organisation, Planning & Review Processes and the Risk Management Framework provide the foundation for Internal Financial Controls with reference to your Companys Financial Statements. Such Financial Statements are prepared on the basis of the Significant Accounting Policies that are carefully selected by management and approved by the Audit Committee and the Board. These Policies are supported by the Corporate Accounting and Systems Policies that apply to the entity as a whole to implement the tenets of Corporate Governance and the Significant Accounting Policies uniformly across your Company. The Accounting Policies are reviewed and updated from time to time. These, in turn are supported by a set of divisional policies and SOPs that have been established for individual businesses. Your Company uses ERP System as a business enabler and also to maintain its Books of Account. The SOPs in tandem with transactional controls built into the ERP Systems ensure appropriate segregation of duties, tiered approval mechanisms and maintenance of supporting records. The Information Management Policy reinforces the control environment. The systems, SOPs and controls are reviewed by divisional management and audited by Internal Audit whose findings and recommendations are reviewed by the Audit Committee and tracked through to implementation. Your Company has in place adequate internal financial controls with reference to the Financial Statements. Such controls have been tested during the year and no reportable material weakness in the design or operation was observed. Nonetheless your Company recognises that any internal financial control framework, no matter how well designed, has inherent limitations and accordingly, regular audit and review processes ensure that such systems are reinforced on an on- going basis. Your Company has also put in place comprehensive systems and procedural guidelines concerning other areas of business, too, like budgeting, execution, material management, quality, safety, procurement, asset management, human resources etc., which are adequate and necessary considering the size and level of operations of your Company. The management has been making constant efforts to review and upgrade existing systems and processes to gear up and meet the changing needs of the business.
Discussion and Information of financial performance of the Company including various ratio analysis are given separately in Financial Discussion Analysis Report as a part of this report in continuation.
FINANCIAL DISCUSSION AND ANALYSIS
Your Company is Uplifting Lives, Thriving Communities by going beyond development and become force for meaningful transformation. The continual improvement in business profile of your Company has continued primarily due to focusing the available resources only on developing urban infrastruc-ture business. Your Company has since been able to broad-base its offerings as well as expanded scale of operations in urban infrastructure activities. The summarized analysis of financial statements viz. Profit and Loss Account, Balance Sheet and Cash Flow are furnished further.
Total Revenue (? in lakhs % change)
| Particulars | For FY2026 | For FY2025 | YoY change | % change |
| Revenue from Operations on: (Refer Note 24) | 26,122 | 19,921 | 6,202 | 31% |
| Rental income | 109 | 132 | - 23 | - 17% |
| Other Operating Income | 6,039 | 4,635 | 1,404 | 30% |
| Total Operating Income (TOI) (A) | 32,270 | 24,688 | 7,582 | 31% |
| Other income (B) (Refer Not 24) | 1,522 | 1,572 | - 50 | - 3% |
| Total Revenue (A + B) | 33,792 | 26,260 | 7,533 | 29% |
The revenue of your Company comprises income from construction and development of Urban Infra-structure projects as well as certain income from rental, and share of profit from LLPs; other operating income includes revenue from sale of balance land received on completion of PPP project; while Other Income mainly comprises interest earned on investments such as term deposits with banks, and on loans given.
The overall revenue from operations during FY2026 increased by ?6,202 lakh (31%) as compared to the FY2025. As your Company has since swayed towards execution of higher margin PPP projects, the reve-nue from PPP basis projects has since increased by 39% during FY2026 as compared to FY2025, while the revenue from EPC basis projects has reduced by 1% during FY2026 as compared to FY2025. Geogra-phy wise, the revenue contribution from Gujarat has increased with corresponding reduction for Rajas-than as the earlier projects at Rajasthan were completed or near to completion stage. The total income for FY2026 is ?33,792 lakh as against ?26,260 lakh in the previous year registering an increase of 29%. Each element of total revenue is discussed further.
Infrastructure Projects
Your Company undertakes construction and development of Urban Infrastructure projects for govern-ment/semi-government agencies/departments as well as private entities of repute. Construction and development of Infrastructure project is carried-out pursuant to work order issued by/Agreement entered into with the client. Revenue of your Company from construction and development of Infra-structure project is driven by the success in selecting the right order (nature as well as size), executing it proficiently and building sufficient order-book.
On April 1, 2025, your Company had an unexecuted order-book of construction and development of Infrastructure projects worth ?135,285 lakh. During FY2026, your Company secured (net) work-orders amounting to ?32,928 lakh. On April 1, 2026, your Company had an unexecuted order-book of construction and development of Infrastructure projects worth ?142,091 lakh.
Rental
Your Company owns prime commercial office space of 88,000 sq ft in an upmarket locality of Ahmed-abad. In order to generate regular sustainable income, your Company has leased certain prime com-mercial office space to reputed corporates on long-term basis. Income from rental for FY2026 is ?109 lakh that is 1% (?23 lakh) lower as compared to FY2025 as certain office space has since been vacated during FY2026. Meanwhile, your Company is looking-out for the new lessee with good credentials and is confident to find lessee/s in due-course for the remaining space.
Share of Profit/(Loss) from LLP
During FY2026, your Company has booked share of its loss from a JV i.e. Kent Residential and Industrial Park LLP of ?436 lakh, which is higher by ?163 lakh from ?273 lakh loss during FY2025.
Other Income
Other income mainly comprises interest income from bank deposits and others, liabilities written back, and miscellaneous income. Other income in FY2026 is ?1,522 lakh that is 3% (?50 lakh) lower as com-
pared to FY2025s ?1,572 lakh. The break-up of other income is furnished further.
(? in lakhs)
| Particulars | For FY2026 | For FY2025 | YoY change | % change |
| Interest income: (Refer Note 25) | 1,477 | 1,547 | - 71 | - 5% |
| From loan | 1,390 | 1,486 | - 97 | - 7% |
| On Bank Deposits | 87 | 61 | 26 | 44% |
| Liabilities no longer required to be paid written back | - | 5 | - 5 | - 100% |
| Profit on sale of property, plant and equipment | - | 17 | - 17 | - 100% |
| Other non-operating income | 0 | 0 | 0 | 0% |
| Realised gain on sale of mutual funds | 47 | - | 47 | NA |
| Net gain on fair valuation of mutual fund investments (FVTPL) | - 3 | 3 | - 6 | - 200% |
| Total Other Income | 1,522 | 1,572 | - 50 | - 3% |
The decrease in interest income from other parties to the extent of ?97 lakh is from the advances extended mainly to JVs and subsidiary companies. It may be mentioned that such advances are given in the routine course of business and it carry interest not lesser than the weighted average cost of your Companys funds. Interest income from bank deposits for FY2026 has increased by ?26 lakh owing to placing of certain new Security Deposit as cash-margin towards utilization of bank-guarantee limits. Overall interest income during FY2026 has decreased by 5% i.e. by ?71 lakh as compared to FY2025.
Expenses
Total expenses in FY2026 is ?30,035 lakh as compared to ?23,270 lakh in FY2025 i.e. increase of 29% (?6,765 lakh), which is commensurate to 29% (?7,533 lakh) increase in total revenue. The breakup of the said expenses is furnished further.
(? in lakhs)
| Particulars | For FY2026 | For FY2025 | YoY change | % change |
| Cost of material consumed and project expenses (Refer Note 26) | 24,419 | 17,494 | 6,924 | 40% |
| Purchase/allotment of land, Change in Inventory (Refer Note 27 and 28) | 3,112 | 3,966 | - 855 | - 22% |
| Employee benefit expenses (Refer Note 29) | 597 | 509 | 88 | 17% |
| Finance costs (Refer Note 30) | 429 | 387 | 42 | 11% |
| Depreciation and amortization expense (Refer Note 4, 5 & 6) | 162 | 141 | 21 | 15% |
| CSR Expense (Refer Note 31A) | 21 | 22 | - 1 | - 3% |
| Share of Profit/(Loss) from LLP (Refer Note 31) | 436 | 273 | 163 | 60% |
| Other Expenses (Refer Note 31) | 860 | 477 | 383 | 80% |
| Total Expenses | 30,035 | 23,270 | 6,765 | 29% |
Cost of material consumed and project expenses (Refer Note 26) and Changes in inventories (Refer Note 28)
The expenditure incurred on projects for FY2026 has increased to ?24,419 lakh, in proportionate to the increase in revenue from operations, by 40% over the previous years expenditure of ?17,494 lakh.
The prime contributor to the net increase of ?6,924 lakh is Labour cost which is ?16,949 lakh for FY2026 with an increase by 41% over the previous years expenditure of ?12,060 lakh and increase of ?1,065 lakh is Relocation cost which is ?3,948 lakh for FY2026 with an increase by 37% over the previous years expenditure of ?2,883 lakh.
There has been decrease in land-bank by 48% i.e. ?3,368 lakh during FY2026 to ?3,598 lakh.
Both these have collectively increased the costs for FY2026 by ?6,765 lakh i.e. by 29% over the previous years expenditure.
Employee benefits expenses (Refer Note 29)
Employee benefits expenses include salaries, allowances, bonus, Contribution to provident and other funds, Remuneration and perquisites to Directors, and Staff welfare expenses.
Total No. of employees at March 31, 2026 is 62 as compared to 54 employees at March 31, 2025. This expense has increased by 17% (?88 lakh) i.e. from ?509 lakh in FY2025 to ?597 lakh in FY2026. There is no variable component of remuneration availed by the Directors except fixed pay of monthly salary and sitting fees as applicable, which is in conformity of the Remuneration Policy of your Company.
Finance costs (Refer Note 30)
Your Company does not inventorise any finance cost. The finance costs for FY2026 is ?429 lakh in com-parison to ?387 lakh during FY2025. Interest on borrowings has reduced by ?42 lakh over previous financial year as your Company has reduced its overall debt and also successfully re-negotiated the RoI with the lenders for debt and has lowered the finance cost. The weighted average cost of borrowing has reduced.
The Other borrowing cost has increased by 114% from ?58 lakh in FY2025 to ?124 lakh in FY2026, during FY2026 your Company has paid higher bank guarantee charges by ?47 lakh (118%) - as com-pared to FY2025.
Depreciation and amortisation expense (Refer Note 4, 5 & 6)
The depreciation and amortisation expense charged to the profit and loss account during FY2026 is
? 162 lakh as compared to ?141 lakh in FY2025 i.e. increase of 15%. During FY2026, your Company sold certain worn-out Plant & Machinery, office equipment, vehicles aggregating ?10 lakh; while there has been a net addition of office equipment/computers/vehicles by ?21 lakh. The combined net-block of PPE and Investment properties has decreased by ?142 lakh at March 31, 2026 as compared to March 31, 2025.
CSR Expense (Refer Note 31A)
As an ideal corporate citizen, your Company has undertaken activities of CSR in accordance with the policy. An aggregate amount of ?20.91 lakh is spent on such CSR activities during the year, well satisfy-ing the statutory stipulations. The detail of CSR policy, program, activities and spending are given in Annexure to the Board Report.
Other expenses (excluding CSR Expense) (Refer Note 31)
Other expenses majorly comprise Legal and professional charges, Power and fuel expenses, Repairs and Maintenance expenses, Travelling and conveyance, Insurance, Rent. Collectively other expenses (excluding CSR Expense) have increased by ?383 lakh i.e. ?860 lakh in FY2026 from ?477 lakh in FY2025 mainly owing towards commission on sale by ?221 lakh, Provision for loss allowance on Trade Receiv-ables by ?43 lakh and Legal and Professional charges by ?78 lakh.
(? in lakhs)
| Particulars | For FY2026 | For FY2025 | YoY change | % change |
| Revenue from Operations | 32,271 | 24,688 | 7,583 | 31% |
| Less: Operational Expenses | 29,444 | 22,742 | 6,702 | 29% |
| EBIDTA | 2,826 | 1,946 | 880 | 45% |
| EBITDA % to Revenue from operation | 9% | 8% | ||
| Add: Other Income | 1,522 | 1,572 | - 50 | - 3% |
| Less: Finance Costs | 429 | 387 | 42 | 11% |
| Less: Depreciation and amortisation expenses | 162 | 141 | 21 | 15% |
| Profit Before Tax (PBT) | 3,757 | 2,989 | 768 | 26% |
| PBT % to Total Revenue | 11% | 11% | ||
| Tax Expenses | 1,058 | 835 | 223 | 27% |
| Profit After Tax | 2,699 | 2,154 | 545 | 25% |
| PAT % to Total Income | 7.99% | 8.20% |
Total expenses in FY2026 is ? 30,035 lakh as compared to ? 23,270 lakh in FY2026 i.e. an increase of 29% (? 6,765 lakh), which is at par in comparison of 29% (? 7,533 lakh) growth of revenue. The increment in Finance cost, and Depreciation, RM/Project cost, Employee benefits, CSR and other expenses have reduced your Companys profitability. The EBIDTA has increased from ? 1,946 lakh i.e. 8% of revenue from operations for FY2025 to ? 2,826 lakh i.e. 9% for FY2026. During FY2026, your Company imple-mented certain cost-cutting measures which provided certain cushion at PBT level. Your Company provides for current tax and deferred tax based on the computation in accordance with provisions of Income Tax Act, 1961. The net tax payable for FY2026 is ? 1,058 lakh that is increase by 27% (? 223 lakh) over FY2025s ? 835 lakh. PAT for FY2026 has increased to ? 2,699 lakh (7.99% of Total Income), as against ? 2,154 lakh (8.20% of Total Income) for FY2025.
The Board of Directors of your Company has thought it prudent to not propose declaration of any dividend and plough-back the entire profit instead as retained earnings to ably support growth of your Company.
Non-current Assets
The non-current assets at March 31, 2026 and March 31, 2025 with detail of changes therein during the
financial year are as follows:
(? in lakhs)
| Particulars | For FY2026 | For FY2025 | YoY change | % change |
| a. Property, plant and equipment (Refer Note 4) | 583 | 640 | - 57 | - 9% |
| b. Investment properties (Refer Note 5) | 3,037 | 3,121 | - 84 | - 3% |
| c. Intangible assets (Refer Note 6) | 1 | 3 | - 1 | - 43% |
| d. Financial assets: | ||||
| i. Investments (Refer Note 7) | 10,840 | 10,873 | - 33 | - 0% |
| ii. Loans (Refer Note 8) | 34 | 13 | 21 | 155% |
| iii. Other financial assets (Refer Note 9) | 1,450 | 1,508 | - 58 | - 4% |
| e. Other tax assets net (Refer Note 11) | 319 | 314 | 5 | 1% |
| f. Other non-current non-financial assets (Refer Note 10) | 809 | 552 | 257 | 47% |
| Total | 17,073 | 17,024 | 49 | 0% |
During FY2026, your Company purchased new PPE amounting ? 21 lakh to support the operations, while it sold certain vehicles, worn-out Plant & Machinery, furniture & fixtures, office equipment/-computer, aggregating ? 10 lakh i.e. post depreciation the balance is ? 583 lakh at March 31, 2026. The Investment Property post depreciation has decrease to ? 3,037 lakh at March 31, 2026.
The primary reason of net decrease in Investment during FY2026 is refund of investment made to JV/associate viz. Kent Residential and Industrial Park LLP. These entities are established to address specific business opportunities. Such investments as well as loans/advances are extended in normal course of business in order to pursue the specific objective for which it is formed. Loans and Advanc-es to related parties at March 31, 2026 and March 31, 2025 are ? Nil lakh.
Security and other Deposit has decreased by net ? 205 lakh to ? 491 lakh at March 31, 2026 from ? 696 lakh at March 31, 2025 mainly due to certain security deposits are received back. Certain stipu-lated amount is normally deposited towards utility, other infra connections, etc. The margin money deposited with bank has increased by ? 149 lakh at March 31, 2026 to ? 855 lakh from ? 706 lakh at March 31, 2025 mainly due to utilization of bank-guarantee limits. It may be noted that such interest bearing fixed deposits are kept with bank for the purpose of issuing bank guarantee in order to participate in various tenders. These have collectively decreased the Other financial assets by ? 58 lakh to ? 1,450 lakh at March 31, 2026 from ? 1,508 lakh at March 31, 2025.
The Income tax assets have increased by ? 5 lakh from ? 314 lakh at March 31, 2025 to ? 319 lakh at March 31, 2026.
During FY2026, your Company has tendered advance towards certain PPE and higher prepaid expenses with an aggregate balance of ? 809 lakh at March 31, 2026 as compared to ? 552 lakh at March 31, 2025.
Hence, overall Non-current Assets have increased by net ? 49 lakh i.e. 0.3% from ? 17,024 lakh at March 31, 2025 to ? 17,073 lakh at March 31, 2026 mainly due to increase in Margin Money, Advances towards certain PPE and higher prepaid expenses.
Current Assets:
The detail of Current Assets at March 31, 2026 and March 31, 2025 with changes therein during the year is furnished further.
(? in lakhs)
| Particulars | For FY2026 | For FY2025 | YoY change | % change |
| a. Inventories (Refer Note 12) | 6,516 | 7,627 | - 1,111 | - 15% |
| b. Financial Assets | ||||
| i. Investments (Refer Note 7) | - | 1,003 | - 1,003 | - 100% |
| ii. Trade receivables (Refer Note 13) | 2,731 | 444 | 2,288 | 516% |
| iii. Cash and cash equivalents (Refer Note 14) | 26 | 2,314 | - 2,288 | - 99% |
| iv. Bank balances other than (ii) above (Refer Note 14) | - | 311 | - 311 | - 100% |
| v. Loans (Refer Note 8) | 10,233 | 8,990 | 1,243 | 14% |
| vi. Other current financial assets (Refer Note 9) | 2 | 10 | - 7 | - 75% |
| c. Other current non-financial assets (Refer Note 10) | 52,172 | 48,340 | 3,832 | 8% |
| Total | 71,681 | 69,038 | 2,643 | 4% |
Total decrement of ? 1,111 lakh in inventories during FY2026 is mainly attributable to decrease in land by ? 3,368 lakh i.e. ? 3,598 lakh at March 31, 2026 from ? 6,966 lakh at March 31, 2025, while RM+WIP has increased to ? 2,920 Lakh at March 31, 2026. This fructified as a result of your Companys conscious and focused efforts to rationalize the inventory carrying as well as graduated efficiency of purchase function.
There is an overall increase in the level of Trade Receivables by ? 2,288 lakh i.e. from ? 444 lakh at March 31, 2025 to ? 2,731 lakh at March 31, 2026. Your Company is making rigorous follow-up with all the debtors.
The collective cash and bank balance at March 31, 2026 is ? 26 lakh as compared to ? 2,625 lakh at March 31, 2025.
Loans comprise the portion that is expected to be realized within a period of 12 months from the Balance Sheet Date. At March 31, 2026 it is ? 10,233 lakh as against ? 8,990 lakh at March 31, 2025 depicting an increment by ? 1,243 lakh - mainly extended to subsidiary and JV companies. During FY2026, your Company has earned interest to the tune of ? 1,224 lakh from Loans to Related Parties.
The other financial assets amount to ? 2 lakh at March 31, 2026.
The other current non-financial assets have increased by ? 3,832 lakh to ? 52,172 lakh at March 31, 2026 as against ? 48,340 lakh at March 31, 2025 mainly on account of increase in Gross value of Sale of Contract Assets by ? 5,785 lakh and increase in balance with government authorities (GST receivables) by ? 180 lakh which have been curtailed by with the decrease in Land rights and TDRs by ? 2,077 lakh along with decrease in unbilled revenue vide Ind AS 11 and Ind AS 18 by ? 340 lakh to ? 148 lakh at March 31, 2026 as against ? 488 lakh at March 31, 2025. It may be noted that such contract assets are booked in normal course of business and would be converted to receivables in due course of time. Prepaid expenses increased by ? 324 lakh to ? 735 lakh at March 31, 2026 as against ? 411 lakh at March 31, 2025, while Advance to Vendors decreased by ? 41 lakh to ? 254 lakh at March 31, 2026 as against ? 295 lakh at March 31, 2025.
Hence, overall Current Assets have increased by ? 2,643 lakh i.e. from ? 69,038 lakh at March 31, 2025
Net Worth
The networth of your Company has been augmenting considerably in past financial years. During FY2026, the net worth of your Company has increased by ? 2,682 lakh to ? 20,785 lakh at March 31, 2026 from ? 18,103 lakh at March 31, 2025 mainly due to earnings are retained and ploughed-back.
Non Current Liabilities
The detail of Non Current Liabilities at March 31, 2026 and March 31, 2025 with changes therein during
the year is furnished further.
(? in lakhs)
| Particulars | For FY2026 | For FY2025 | YoY change | % change |
| a. Financial liabilities | ||||
| i. Borrowings (Refer Note 17) | 2,064 | 2,254 | - 191 | - 8% |
| ii. Other non-current financial liabilities (Refer Note 18) | 934 | 760 | 174 | 23% |
| b. Provisions (Refer Note 19) | 181 | 112 | 69 | 62% |
| c. Deferred tax liabilities (Net) (Refer Note 20) | 820 | 923 | - 103 | - 11% |
| Total | 3,999 | 4,049 | - 50 | - 1% |
During FY2026, your Company has repaid its long-term Borrowings. The long term borrowing has decreased to ? 2,064 lakh at March 31, 2026 from ? 2,254 lakh at March 31, 2025. This has also reduced the interest/finance cost.
Your Company has honoured all its financial commitments and the account is Standard with all the lenders. None of the BGs submitted by your Company has ever been invoked by any Principal/Client. There are no Trade Payable to other than Micro & Small Enterprises (as per the intimation received from vendors) at March 31, 2026.
Other financial liabilities are security deposits that your Company accepts in ordinary course of business from its various vendors and/or contractors. It has increased by ? 174 lakh i.e. to ? 934 lakh at March 31, 2026 from ? 760 lakh at March 31, 2025 owing to incremental holding of retention amount of your Companys contractors for want of successful completion of project and/or achieving stipulated milestones by them.
Provision for employee benefits including gratuity and leave encashment has increased by ? 69 lakh i.e.
? 181 lakh at March 31, 2026 from ? 112 lakh at March 31, 2025 mainly as there has been increment in total Eligible employees during FY2026.
Net deferred tax liability has decreased by ? 103 lakh i.e. ? 923 lakh at March 31, 2026 from ? 820 lakh at March 31, 2025 mainly due to time difference in booking and payment of certain expenses.
Hence, overall Non-current Liabilities have decreased by ? 50 lakh (1%) i.e. from ? 4,049 lakh at March 31, 2025 to ? 3,999 lakh at March 31, 2026 mainly due to decrease in long term borrowing and Net deferred tax liabilities.
Current Liabilities
(? in lakhs)
| Particulars | For FY2026 | For FY2025 | YoY change | % change |
| Financial Liabilities | ||||
| Borrowings (Refer Note 17) | 305 | 357 | - 52 | - 14% |
| Trade payables (Refer Note 21) | ||||
| ii a. Due to micro and small enterprises | 43 | 207 | - 164 | - 79% |
| ii b. Due to others | 3,702 | 2,319 | 1,383 | 60% |
| Other financial liabilities (Refer Note 18) | 134 | 272 | - 137 | 51% |
| Other current non -financial liabilities (Refer Note 22) | 58,980 | 60,296 | - 1,316 | 2% |
| Provisions (Refer Note 19) | 276 | 219 | 58 | 26% |
| Current tax liabilities (net) (Refer Note 23) | 528 | 240 | 288 | 120% |
| Total | 63,969 | 63,909 | 60 | 0% |
Current Borrowings consist of Current maturities of long term borrowings that have reduced by ? 52 lakh i.e. from ? 357 lakh at March 31, 2025 to ? 305 lakh at March 31, 2026 as per the repayment sched-ule of term debt contracted by your Company; and Overdraft bank facility with utilisation was nil at March 31, 2025 as well as March 31, 2026 mainly as there was sufficient cash and bank balance were available.
Trade Payables at March 31, 2026 have increase by ? 1,219 lakh (48%) i.e. ? 3,745 lakh at March 31, 2026 as compared to ? 2,526 lakh at March 31, 2025.
Other financial liabilities of your Company at March 31, 2025 have decreased by ? 137 lakh (51%) i.e. ?
134 lakh at March 31, 2026 as compared to ? 272 lakh at March 31, 2025.
Other Current Non-Financial Liabilities have decreased by ? 1,316 lakh mainly towards the GST liability payable to the tune of ? 465 lakh, reduction in advance from contractors by ? 10 lakh to ? 100 lakh at March 31, 2026 from ? 110 lakh at March 31, 2025 and reduction in advance from customer by ? 875 lakh to ? 58,462 lakh at March 31, 2026 from ? 59,337 lakh at March 31, 2025.
Provisions consist of employee benefits including gratuity and leave encashment that have decreased to ?16 Lakh at March 31, 2026 from ? 24 lakh at March 31, 2025, while provision for defect liability (DL) period has increased by ? 66 lakh to ? 260 lakh at March 31, 2026 from ? 194 lakh at March 31, 2025 due to commencement of the DL period on completion of certain projects.
The Current Tax Liabilities (net of advance tax paid) is ? 528 lakh as on March 31, 2026.
Hence, overall Current Liabilities have increased by ? 60 lakh (0.10%) i.e. from ? 63,909 lakh at March 31, 2025 to ? 63,969 lakh at March 31, 2026.
KEY FINANCIAL RATIOS:
The detailed discussion on financial performance is captured in the Directors Report section of this Annual Report, while analysis of key ratios, in terms of the requirement of SEBI LODR Regulations, is furnished herein below.
| Ratio | FY2026 | FY2025 | Detailed explanation |
| Debtor Turnover Net Credit Sales/ Average Accounts Receivable In Days | 20.33 | 39.51 | The credit policies and collection process of your Company are satisfactory and commensurate to the industry and/or the segment it operates into. Your Company deals with creditworthy customers. During FY2026, the overall trade receivables as well as the No. of days have increased as compared to the previous year Due to recovery of old receivables from Government projects in previous year. |
| 18 | 9 | ||
| Inventory Turnover COGS/Average Inventory In Days | 3.89 | 2.25 | As your Company has certain historic land, the inventory turnover is not exactly comparable with industry and/or the segment it operates into. During FY2026, the overall inventory has increased as compared to the COGS that has marginally disturbed the perspective of No. of days as compared to the previous year due to sale of land inventory and faster project execution. |
| 94 | 162 | ||
| Interest Coverage Ratio EBIT/Interest | 9.76 | 8.72 | Your Companys debt:equity, leverage, gearing are commensu-rate to the industry and/or the segment it operates into. Your Company has tied-up with first-rung banks/NBFCs for its various credit requirements. Your Company has successfully maintained Investment Grade credit rating over a period of years, while the account is Standard with all the lenders. For FY2026, the interest coverage has increased as compared to FY2025 as your Compa-ny has substantially reduced the overall debt and consequently the interest cost, while the EBIT has increased as compared to the previous year. |
| Current Ratio Current assets/ Current liabilities | 1.12 | 1.08 | The increase in current ratio of your Company at March 31, 2026 as compared to that of March 31, 2025 is mainly owing to the increase in current assets is more than increase in current liabilities. The current ratio is well above the stipulated level. It could also indicate that your Company has sufficient ability to pay short-term obligations i.e. due within one year. Your company has been able to maximize the current assets on its balance sheet to satisfy its current debt and other payables. |
| Debt Equity Ratio Total debt/Networth | 0.11 | 0.14 | The Debt Equity ratio of your Company is favourable as compared to the industry and/or the segment it operates into. During FY2026, your Company has substantially reduced the overall debt and the networth has increased due to plough-back-of-profit. |
| Operating Profit Margin Op Profit/Op Income | 8.26 | 7.31 | During FY2026, your Companys operating margin has increase as compared to previous year as the new projects are with appropriate margin. |
| Net Profit Margin PAT/Operating income | 8.36 | 8.72 | The Company continued to undertake larger and strategically important projects during FY2026, which involved higher operational and administrative expenditures in the initial stage of execution. Despite the slight moderation in the ratio, the Company maintained a healthy profitability level. |
| Return on Net worth PAT/Networth | 12.99 | 11.90 | For FY2026, your Company has earned more PAT. Hence, Return on Assets the figures are more positive than previous year. |
| 3.04 | 2.50 | ||
| Return on Assets PAT/Total Assets | 16.94 | 15.34 | The improvement in the ratio indicates better utilisation of capital and improved operating efficiency during the year. |
Cashflow
(? in lakhs)
| Particulars | For FY2026 | For FY2025 |
| Opening cash and cash equivalents | 2,314 | 23 |
| Net cash generated from / (used in) Operating Activities (A) | - 2,520 | 6,262 |
| Net cash from / (used in) Investing Activities (B) | 910 | - 2,730 |
| Net cash from / (used in) Financing Activities (C) | - 677 | - 1,241 |
| Change in cash and cash equivalent (Total = A+B+C) | - 2,288 | 2,291 |
| Closing cash and cash equivalents | 26 | 2,314 |
During the year, the Company recorded a healthy increase in Profit Before Tax from ?2,989 lakhs in FY 2024-25 to ?3,757 lakhs in FY 2025-26, reflecting strong business momentum, improved project execu-tion, and growth in operational scale.
The temporary reduction in operating cash flow is primarily attributable to higher working capital deployment necessitated by increased project execution activities. Infrastructure and EPC businesses inherently require substantial upfront deployment of funds towards mobilization advances, project-re-lated deposits, subcontractor advances, procurement of materials, and execution expenses before realization of project receivables.
The increase in trade receivables during the year mainly represents milestone-based billing and reten-tion amounts receivable from customers, which are standard features in infrastructure contracts and are considered recoverable in the normal course of business. Similarly, the increase in other assets largely comprises project advances, security deposits, and other execution-related advances incurred for ongoing and newly awarded projects.
The Company has strategically utilized its resources to support expansion in operations and timely project execution. Reduction in inventory levels during the year demonstrates efficient utilization of materials and improved execution efficiency. Further, the increase in trade payables reflects enhanced vendor support and normal credit expansion associated with higher business volumes.
Despite significant working capital deployment, the Company maintained financial discipline by continuing repayment of long-term borrowings during the year. The Company also generated positive cash flow from investing activities through efficient treasury management, withdrawal of investments, and realization of interest income.
The lower cash and bank balance as on 31 March 2026 is primarily a timing difference arising from project execution cycles, receivable realization schedules, and year-end deployment of funds into ongoing projects. The management expects normalization of operating cash flows as project milestones are achieved and collections are realized in subsequent periods.
Overall, the cash flow movement during the year reflects growth-oriented deployment of funds rather than operational weakness, and is consistent with the working capital characteristics of a rapidly expanding infrastructure and project execution business.
Details of Subsidiaries, Associates and JVs of your Company at 31/03/2026:
(? in lakhs)
| Sr. No. | Name of the entity Project location | NILAs investment in equity | % share- - holding | Loans & Advances extended (As closing balance) | Profit After Tax shared | Remark |
| 1 | Romanovia Industrial Park Pvt Ltd (23.480621, 71.974021), | 1,251* | 50% | 4,782 | - | Industrial and logistics |
| Navyani, Gujarat | park - | |||||
| various | ||||||
| 2 | Kent Residential and Industrial Park LLP (23.478515, 72.009447), Sitapur, Gujarat | 9,039 | 50% | 84 | - 273 | structures under execution |
| 3 | Nila Terminals (Amreli) Pvt Ltd (21 deg 36\u203211\u2033N 71 deg 13\u203219\u2033E), | 1 | 100% | 1,034 | - | Bus-port projects for |
| Amreli, Gujarat | GSRTC - | |||||
| under | ||||||
| 4 | Vyapnila Terminals (Modasa) Pvt Ltd (23 deg 28\u2032N 73 deg 18\u2032E), | 548* | 34% | 2,346 | - | execution |
| Modasa, Gujarat |
* measured at fair value at the date of transition to Ind AS i.e. the deemed cost of such investment for your Company.
None of the Pvt Ltd entities mentioned above have declared any dividend during FY2026. Further, with respect to your Companys strategic investment with the Kataria Group of Ahmedabad to work jointly for acquiring land and developing industrial and logistics parks, units, sheds, plots, residential colonies, and allied infrastructure at various locations situated near the upcoming automobile hub at Bechraji - about 90 kms from Ahmedabad at Gujarat, it may be mentioned that the progress is satisfactory and your Company has started to reap benefits as more specifically furnished in detail in other sections of this Annual Report. Your Company has executed a well-thought strategy and is favorably positioned as a first-mover, promoter of industrial eco-system in the region, and fostering infrastructure develop- ment.
Your Company has built industrial warehouse structures as well as residential dormitories on BTS basis. Such infrastructure development has already been rented out on long-term lease basis to reputed corporates including MNCs.
There surely lies an opportunity in every crisis and your Company has embarked on a different growth trajectory with the adaptation to the new normal. Your Company is getting ready to bid for new orders and has identified favourable orders in pipeline to be executed across segments and geographies. The
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