Om Infra Ltd Management Discussions

1.) INDUSTRY STRUCTURE AND DEVELOPMENTS

1. Macroeconomic Context and the Infrastructure Upcycle

The fiscal year 2025 26 has been characterized by India s enduring structural resilience and sustained capital expenditure momentum amid global economic realignments. Central to this narrative has been the Union Governments aggressive infrastructure push, underscored by a rising national capital outlay scaling to 12.2 lakh crore. This public spending is specifically directed toward climate-resilient engineering, modern water management systems, and a green energy transition. Furthermore, the operationalization of the new Infrastructure Risk Guarantee Fund has significantly fortified lender confidence, lowering execution risks across multi-year civil works.

Your Company, Om Infra Limited, sits strategically at the epicentre of these structural growth engines through its integrated, turnkey execution architecture across two prime business landscapes:

? Water Infrastructure & Heavy Engineering : Providing turnkey execution from design, detail engineering, and precision fabrication to installation, testing, and commissioning of massive hydro-mechanical projects, irrigation systems, dams, and piped water networks.

? Real Estate Development : Crafting high-value residential townships, commercial assets, and urban redevelopment initiatives backed by deep internal engineering synergies.

2. Sectoral Structure and Trends

A. Heavy Hydro-Mechanical & Water Resource Engineering

The industry layout for high-capacity hydro-infrastructure and turnkey Engineering, Procurement, and Construction (EPC) contracts is highly specialized with significant barriers to entry. The industry has shifted definitively away from fragmented execution toward integrated players capable of executing an entire project lifecycle. Key drivers influencing our market workspace include:

? Government Allocation Resurgence : The Indian Government s fiscal roadmap highlights profound public capex pipelines. The total national water sector outlay has crossed 84,000+ crore, driven significantly by an allocation of 67,670 crore for the Jal Jeevan Mission (JJM) (extended through 2028), 8,000 crore for AMRUT 2.0 (targeting urban water and wastewater transformation), and 5,226 crore for river-interlinking and agricultural water distribution schemes like the Eastern Rajasthan Canal Project (ERCP).

? The Hydropower & Pumped Storage (PSP) Push : India s national blueprint targets an expansion of hydropower capacities from 42 GW up to 67 GW by 2031-32, alongside an ambitious plan to establish massive Pumped Storage Capacities (targeting over 50+ GW of potential) to balance clean energy power grids. This opens multifold, high-margin opportunities for deep, complex hydro-mechanical equipment manufacturing, such as radial gates, penstocks, and high-capacity hydraulic hoists.

? Cross-Border Hydro-Resurgence : Macro-political focus, including the strategic acceleration of border-region development and evolving geopolitical water treaty dynamics, is fast-tracking regional hydroelectric projects. This is opening substantial order inflows for customized hydro-mechanical gate systems and pressure shaft lines in sensitive or challenging terrains.

B. Urban Real Estate & Special Projects

The domestic real estate market reflects steady premiumization and structural demand across tier-1 and tier-2 urban corridors. Market preference rests definitively on transparent, corporate-governed, listed developers capable of delivering RERA-compliant projects on schedule.

? Execution Capability as a Margin Protector : In an era of volatile commodity cycles, internal engineering and civil execution capabilities act as primary margin shields against fluctuating material cost indices.

? Asset-Light and Redevelopment Models : The sector is witnessing a sharp trend toward asset-light monetization. Infrastructure companies holding highly valuable urban land banks or participating in high-yield frameworks like the Slum Rehabilitation Authority (SRA) in premium metros (e.g., Mumbai) are successfully unlocking significant capital via joint development or co-developer frameworks without requiring further internal working capital deployment.

2.) OPPORTUNITIES

1. Robust Public Capex on Strategic Water Initiatives

The Government of India has escalated its fiscal focus by extending the Jal Jeevan Mission (JJM) to 2028 with a targeted allocation of 67,670 crore, embedded within a comprehensive water sector budget crossing 84,000+ crore. With roughly 16.1 crore rural households across key states like Rajasthan and Uttar Pradesh still requiring tap water access, a substantial, multi-year execution runway remains for Your Company s core water transmission and distribution capabilities.

2. Expansion of Hydropower and Grid Storage Pipelines

National clean energy roadmaps project expanding domestic hydropower capabilities from 42 GW to 67 GW by 2031-32, with a highly prioritized target of adding substantial Pumped Storage Project (PSP) capacity to balance intermittent renewable grids. Given that Your Company is currently delivering one of India s most prestigious hydro storage networks the Kundah PSP (1,000 MW) Om Infra is uniquely positioned to leverage its credentialing to capture a dominant share of this high-margin engineering pipeline.

3. Geopolitical Acceleration in Border Corridor Hydropower

Strategic macro-political developments and an intensified central focus on border-region development are highly anticipated to expedite regulatory clearances and accelerate hydroelectric structural setups in sensitive bordering river basins. This creates direct, high-entry-barrier tailwinds for Your Company s specialized hydro-mechanical order books (comprising heavy radial gates, penstocks, and hydraulic hoists) where strict technical pre-qualifications eliminate unorganized competition.

4. Unlocking Latent Capital via Non-Core Asset Arbitrations

Your Company is systematically executing a balance sheet optimization strategy aimed at retrieving structural cash flows from legacy, non-operational segments. This includes a major favorable arbitration award of 587 crore linked to the Jaipur-Bhilwara Toll Road SPV (in which Your Company holds a 51% stake) and a 53 crore legal ruling tied to the Gurha Thermal facility. Successful enforcement of these awards projects over 700+ crore in non-dilutive, high-liquidity inflows over the next 2-3 fiscal years.

5. Geographic Expansion and Mega Project Bidding Pipelines

Capitalizing on proven engineering execution benchmarks most notably the successful water impounding milestone achieved at the Isarda Dam Project Your Company plans to scale its engineering footprint. Management is actively target-bidding for components of the emerging Eastern Rajasthan Canal Project (ERCP), while establishing a firm standalone fresh order inflow guidance threshold of 1,500 crore for FY2026-27.

6. Real Estate Monetization and Asset-Light Value Creation

A resilient urban luxury residential and redevelopment demand environment provides Your Company with an excellent cash-flow shield. Active monetization pipelines include an estimated 290 crore in remaining realizable collections from the premium Pallacia project in Jaipur, alongside a massive, asset-light joint-development layout spanning ~2 million sq. ft. of FSI within the Slum Rehabilitation Authority (SRA) project in Mumbai executed in partnership with Valor Estate Ltd.

4. THREATS :

? Project Delays and Cost Overruns: Large-scale civil projects are susceptible to delays due to land acquisition issues, regulatory hurdles, environmental clearances, and unforeseen geological conditions. This can lead to cost escalations and impact profitability. ? Raw Material Price Volatility: Fluctuations in the prices of key construction materials like steel, cement, and aggregates can significantly impact project costs and margins. ? Skilled Labor Shortage: Availability of skilled labor, particularly for specialized dam and gate construction, remains a challenge, potentially affecting project timelines and labor costs. ? Intense Competition: High competition can lead to aggressive bidding, impacting project margins. ? Environmental and Social Concerns: Increased scrutiny and public awareness regarding the environmental and social impact of large dam projects can lead to protests and delays. ? Geopolitical and Economic Instability: Global and domestic economic downturns, inflation, and interest rate changes can affect government spending and project viability. ? Climate Change Impacts: Extreme weather events (e.g., excessive rainfall, droughts) can disrupt project schedules and impact the long-term viability of water resources.

3.)RISKS, CONCERNS, AND MITIGATION STRATEGIES

Operating across high-value, turnkey engineering setups and premium real estate assets exposes Your Company to diverse macro and operational variables. Management systematically identifies, monitors, and minimizes these risks through an institutional Risk Management Framework, ensuring corporate resilience and capital protection.

1. Systemic Receivable Cycles across State-Level Agencies

Turnkey public utility engineering remains highly exposed to the timing of state budgetary allocations and bureaucratic approval windows. During FY26, industry-wide delays in state fund releases under rural piped-water programs temporarily moderated billing velocity, stretching outstanding receivables beyond historic averages.

? Mitigation Strategy : Your Company has selectively pivoted towards front-loaded payment structures in newer contracts and is actively leveraging newly injected State Revival funds to clear backlogged cycles as we enter the new fiscal year.

2. Early Expense Booking and Working Capital Drag

Because multi-year infrastructure contracts demand continuous construction progress to avoid default or performance penalties, delays in government cash clearances force EPC contractors into early expense booking. Deploying internal capital pools to sustain site velocity creates a temporary working capital drag.

? Mitigation Strategy : By maintaining an exceptional consolidated net debt-to-equity ratio of 0.03x and optimizing lean inventory controls, Your Company relies on its strong equity base ( 808 crore) to cushion these timing mismatches without expanding expensive debt.

3. Input Commodity Volatility and Inflationary Margin Pressure

Turnkey EPC operations are structurally sensitive to volatility in global and domestic raw material markets, particularly structural steel, cement, aggregates, and specialized alloy components. On long-gestation orders, sharp, unexpected inflationary spikes risk compressing projected EBITDA margins.

? Mitigation Strategy : Management increasingly integrates robust price-escalation clauses indexed to wholesale price benchmarks within new tender agreements to pass through raw material cost increments seamlessly.

4. Extended Litigation Cycles for Arbitration Recoveries

While the monetary upside from outstanding arbitration awards (such as the 587 crore award for the Jaipur-Bhilwara Toll Road SPV) is substantial, the actual collection timelines face systemic pushbacks. Government departments frequently contest tribunal declarations across successive judicial hierarchies (High Courts and the Supreme Court), leading to extended litigation lifecycles before the awards translate into active operational cash.

? Mitigation Strategy : Your Company maintains a dedicated legal cell and utilizes formal executing petitions to fast-track court-mandated deposits, ensuring progressive fund realization.

5. Complex Terrains, Logistical Bottlenecks, and Climate Risks

Constructing massive hydro installations and dams in high-altitude zones, remote river valleys, or border corridors introduces unpredictable subterranean anomalies and severe logistical constraints. Furthermore, climate change has increased the frequency of extreme weather events (such as flash floods or delayed monsoons), which can disrupt project sites and ongoing river-diversion works.

? Mitigation Strategy : Your Company leverages over 50 years of specialized technical data, utilizing advanced in-house R&D, detailed pre-bidding topological mapping, and specialized engineering protocols to insulate project timelines against terrain and weather surprises.

6. Intense Competition in Standard Civil Bidding

The entry of multiple domestic and international players into standard civil engineering contracts has intensified competitive bidding, creating a localized compression of profit margins.

? Mitigation Strategy : Your Company is consciously moving away from low-margin, un-segregated civil construction. By focusing on niche, high-entry-barrier domains like Pumped Storage Projects (PSPs) and integrated Hydro-Mechanical setups (radial gates, penstocks, liners) where strict technical pre-qualifications are required, Om Infra effectively bypasses crowded marketplace competition.

4.) SEGMENT-WISE PERFORMANCE AND OUTLOOK

Pursuant to the provisions of Ind AS 108 (Operating Segments), Your Company has identified two core reportable business segments: Engineering & Infrastructure (EPC) and Real Estate Development.

OM INFRA BUSINESS SEGS

Engineering & Infra (EPC)	Real Estate Development
100% of Order Backlog	Monetization Engine
Niche Hydro-Mechanical	600Cr+ Asset Value

A. ENGINEERING & INFRASTRUCTURE SEGMENT (HYDRO-MECHANICAL & WATER SUPPLY)

This represents the primary business vertical of Your Company, accounting for 100% of the active unexecuted project order book (totalling 2,106.61 Crore) as of March 31, 2026.

Operational Review:

The segment recorded an intentional adjustment in billing velocity during the fiscal year 2025-26. Total execution revenue stood consolidated as management consciously prioritized project margin safety and structural risk mitigation over aggressive billing. This was a tactical response to mid-year industry-wide procedural funding delays under various state-level rural piped-water packages, which temporarily elongated working capital cycles across the construction sector for up to nine months.

Structural Turnaround & Stabilization:

The liquidity landscape for this segment improved significantly in the latter half of the fiscal year following the implementation of major state-level economic revival allocations totalling 27,000 crores across our primary execution geographies (Uttar Pradesh and Rajasthan). Backed by these institutional clearances, standard milestone payment collections are structured to flow systematically into Q1FY27. Because early on-site cost-booking has normalized, the operational pipeline remains perfectly stable.

Segment Outlook:

The growth path for this segment is robustly supported by a high-entry-barrier, technically specialized order mix. As the domestic market shifts towards high-margin clean energy alternatives, Your Company is positioning its credentials to capture a dominant share of the national Pumped Storage Project (PSP) and Grid Battery Storage wave leveraging its active execution at India s largest active hydro battery network, the Kundah PSP (1,000 MW).

Furthermore, mega-scale river interlinking and cross-basin water transfer channelization s (such as the emerging Eastern Rajasthan Canal Project - ERCP) will serve as major structural order inflow drivers where Your Company plans to target active bids up to 2,000 crores in FY27.

B. REAL ESTATE DEVELOPMENT SEGMENT

Your Companys Real Estate segment operates as a highly strategic, high-margin cash monetization engine. Driven by steady premiumization and resilient residential and commercial demand across Tier-1 and Tier-2 urban corridors, this segment holds an incremental realizable asset valuation pipeline exceeding 600+ Crore.

Portfolio Review & Collection Visibility:

? Pallacia (Jaipur): A premier luxury residential footprint spanning a total built layout of 6,46,150 sq. ft. To date, cumulative structural collections stand firm at 341 Crores against a recognized accounting revenue of 275 Crores. This project retains a highly secure, incremental realizable revenue and collection landscape estimated at 290 Crores to be unlocked in the upcoming cycles.

? Om Green Meadows (Kota): Encompassing a total development profile of 3,53,814 sq. ft., this residential project has registered collections of 88 Crores against 63 Crores recognized as revenue. The remaining inventory presents an expected realizable value of 24 Crores.

? Slum Rehabilitation Authority (SRA) Project (Mahim, Mumbai): Located across a premium urban corridor, this land package holds extensive Floor Space Index (FSI) clearances permitting approximately 2 million sq. ft. of high-value residential and luxury hospitality development. Following the definitive settlement of legacy municipal and statutory hurdles, survey frameworks and planning for relocating transit-camp inhabitants are fully underway via our co-developer.

Segment Outlook:

The Real Estate division is transitioning into a highly optimized, asset-light value creator. For the landmark Mumbai SRA project, the underlying equity structure is strictly optimized ( Valor Estate Ltd: 50.0%, Om Infra Limited: 17.5% ). Because Your Company is not required to deploy any further incremental capital toward active construction costs, this mega-development will serve as a massive cash flow catalyst with zero development drag or balance sheet leverage. Internal civil execution capabilities will continue to act as a primary shield protecting overall margins across our active regional townships.

Segment Summary Table for Shareholders

(Derived from Consolidated Business Metrics)

Operating Segment	Strategic Role	Primary Driver / Asset	Portfolio Visibility ( )
Engineering & Infra (EPC)	Core Growth Engine	Hydro-Mechanical, JJM, &PSP	2,107 Cr Active Order Book
Real Estate Development	Capital Extraction Engine	Pallacia, Kota Meadows, & Mumbai SRA	600+ Cr Monetization Pipeline

5.) STRATEGIC OUTLOOK & FUTURE ROADMAP

Your Company enters the financial year 2026 27 (FY27) with deep structural strength, backed by a robust consolidated net worth of 808 Crores, a historic low net debt-to-equity ratio of 0.03x, and a highly visible order book of 2,107 Crores. As the macro economy shifts toward large-scale clean energy storage and integrated river systems, the management is executing a well-defined strategy to scale execution, improve profit margins, and unlock latent capital.

The strategic outlook for Your Company is centered around three primary operational pillars:

1. Rebound in Construction Revenue and Margin Expansion

Following a conscious, tactical consolidation of the topline in FY26 to safeguard working capital during industry-wide state billing delays, execution velocity is projected to accelerate sharply.

? Revenue Target : Management has issued a firm revenue guidance of 700 to 750 Crores for FY27, representing a powerful multi-quarter operational recovery.

? EBITDA Expansion : Profitability is projected to improve, with target EBITDA margins climbing to 7% to 8%. This margin expansion is supported by optimized internal component production, the stabilization of input material indexes, and a higher proportion of complex, high-margin hydro engineering milestones.

2. Niche Positioning in Energy Transition and Large-Scale River Basins

Your Company is shifting its bidding focus from general civil works toward specialized, technologically intensive turnkey projects that carry higher entry barriers and better pricing power.

? The Pumped Storage Hydro (PSP) Horizon : Leveraging our proven operational credentials at the 1,000 MW Kundah Pumped Storage Project one of Indias most prominent active hydro batteries Om Infra is actively bidding for incoming national grid-balancing infrastructure projects. The targeted domestic pipeline of 50+ GW in planned PSP configurations gives Your Company a multi-decade market opportunity.

? Mega-Scale Water Infrastructure : Beyond rural distribution pipelines, Your Company is positioning itself to capture a significant share of heavy hydraulic gate, penstock, and automated canal contracts under large regional river-interlinking channels. Management intends to aggressively pursue target components of the emerging Eastern Rajasthan Canal Project (ERCP), with an active bidding intention of up to 2,000 Crores in this corridor alone.

? Order Inflow Targets : For FY27, Your Company has established a fresh structural order intake threshold of 1,500 Crores, focused on protecting cash-flow velocity and expanding high-value order books.

3. Execution of the Asset-Light Monetization Strategy

The medium-term outlook is uniquely supported by a non-dilutive, liquid treasury pipeline that is structured to bring in 700+ Crores over the next 2 3 fiscal years. This capital influx will fundamentally transform our balance sheet liquidity without requiring equity dilution:

? Arbitration Inflows : Your Company is fast-tracking executing petitions in the High Court for the 587 Crore Jaipur-Bhilwara Toll Road award and closely pursuing the final settlement of the 53 Crore Gurha Thermal ruling. The incoming capital from these successful awards will be deployed directly as low-cost operational working capital to support faster project turnover.

? The Mumbai SRA Growth Catalyst : With all primary historic land clearances successfully resolved at our premium Mumbai footprint, co-developer Valor Estate Ltd is moving into transit-camp relocation and site-mobilization planning for a ~2 million sq. ft. development. Because Om Infras 17.5% stake does not require any incremental development capital or debt deployment, this project provides the company with a major cash-flow catalyst that carries zero development risk.

? Regional Township Liquidations : Ongoing collections from our flagship residential projects comprising an estimated remaining realizable value of 290 Crores at Pallacia (Jaipur) and 24 Crores at Om Green Meadows (Kota) provide strong, predictable internal cash support to protect regular operations.

Summary Conclusion

Om Infra Limited is exceptionally well-positioned to capitalize on Indias public infrastructure upcycle. By maintaining low balance sheet leverage, focusing strictly on high-barrier hydro-mechanical engineering, and unlocking substantial cash from legacy non-core assets, Your Company is built to deliver resilient growth, operational excellence, and long-term value for all stakeholders

6) INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Your Company maintains a comprehensive, highly institutionalized system of Internal Financial Controls (IFC) designed to safeguard assets, prevent and detect fraud or errors, ensure accounting precision, and guarantee the timely preparation of reliable financial disclosures. The framework is strictly aligned with the scale, operational complexity, and geographic diversity of Your Company s turnkey Engineering, Procurement, and Construction (EPC) and Real Estate operations.

The Audit Committee, comprising independent directors, regularly reviews the adequacy and effectiveness of the internal control systems and monitors compliance with internal control policies. Internal audits are conducted periodically across all functions and project sites, with findings and corrective actions reported to the management and the Audit Committee.

7)Material Developments in Human Resources / Industrial Relations

Our employees are our most valuable asset. During FY2026, we continued to focus on talent acquisition, retention, and development. We invested in various training programs aimed at enhancing technical skills, safety awareness, and leadership capabilities. The Company maintained harmonious industrial relations throughout the year, fostering a collaborative and productive work environment. Our employee strength as of March 31, 2026, was 647 permanent employees. We are committed to diversity, equity, and inclusion in our workforce.

8) DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

(Based on the Audited Consolidated Financial Statements for the Fiscal Year ended March 31, 2026)

The consolidated financial architecture of Your Company for the fiscal year 2025 26 reflects a calculated operational strategy. Management deliberately prioritized margin safety, balance sheet liquidity, and lower capital deployment risks over pursuing high-volume, low-margin billings. This approach allowed the company to successfully navigate temporary payment gridlocks within the wider rural infrastructure sector.

A. Comprehensive Operational Analysis of the Income Statement

1.Revenue from Operations & Project Execution Velocity

During the fiscal year under review, Consolidated Revenue from Operations stood at 500 Crore, compared to 713

Crore in the previous fiscal year (a variance of 30.0%).

? Operational Linkage : This topline compression was a direct result of a conscious operational pause on select rural water distribution packages under the Jal Jeevan Mission (JJM) . Facing industry-wide billing and clearance extensions that stretched past nine months at the state agency level, Your Company reallocated engineering resources to conserve internal capital. Velocity was maintained primarily at milestone-secure, front-loaded projects, such as the major Isarda Dam project, which achieved its landmark water impounding phase on July 30, 2025.

2. Total Operating Expenses & Resource Optimization

Consolidated Operating Expenses were successfully streamlined by 31.9%, dropping to 472 Crore from 693 Crore in FY25.

? Operational Linkage : This reduction was driven by two operational factors: first, a drop in sub-contracting and raw civil construction outlays during the billing slow-down; and second, the high efficiency of Your Companys captive manufacturing infrastructure. By engineering and fabricating critical high-head radial gates, penstocks, and hydraulic hoists entirely in-house, Om Infra avoided third-party supply premiums, converting input cost control into direct project savings.

3. Other Income

Other Income stood at 18 Crore for FY26 compared to 36 Crore in FY25. This variance reflects normalized treasury returns and the timing of non-operational asset liquidations as the company transitions toward core engineering expansions.

4. EBITDA and Margin Expansion

A key financial highlight for the year was the substantial growth in Core EBITDA, which expanded by 40.0% to 28 Crore, up from 20 Crore in FY25. Consequently, EBITDA Margins registered a powerful expansion of 281 basis points, rising to 6.0% (from 3.0% in FY25).

? Operational Linkage : This improvement underscores the success of our operational shift. By focusing execution on technically demanding, high-entry-barrier engineering milestones such as the 1,000 MW Kundah Pumped Storage Project Your Company successfully replaced high-volume general civil billings with higher-margin, specialized turnkey industrial works.

5. Depreciation and Finance Costs

? Depreciation remained stable at 5 Crore (down from 6 Crore in FY25), showing optimized capacity utilization across manufacturing units.

? Finance Costs fell by 13.6% to 19 Crore (down from 22 Crore in FY25). This reduction highlights managements operational goal to minimize short-term debt extensions and reduce interest expense through disciplined capital management.

6. Profitability Ratios (PBT and PAT)

? Profit Before Tax (PBT) stood at 22 Crore compared to 28 Crore in FY25.

? Profit After Tax (PAT) attributable to owners was reported at 21 Crore, compared to 36 Crore in the previous year, leaving a stable Consolidated PAT Margin of 4.0%. The variance in net profit lines was largely due to lower tax adjustments and reduced non-operating other income compared to the previous year.

B. Balance Sheet Evaluation and Capital Management Efficiency

The operational choices made during the year are highly visible in the strengthened liquidity and resilience of the consolidated balance sheet:

1. Total Equity Framework & Retained Earnings

Your Companys Total Equity expanded to 808 Crores in FY26 (up from 792 Crores in FY25). This baseline demonstrates long-term capital stability and a strong internal net worth, providing a resilient buffer to comfortably support our unexecuted 2,107 Crore project pipeline.

2. Exceptional Leverage Control (Net Debt-to-Equity at 0.03x)

Long-term non-current borrowings were systematically reduced to just 2 Crores in FY26 (down from 4 Crores in

FY25). Consolidated short-term operational borrowing stood at 84 Crore, offset by cash reserves. This keeps the companys Net Debt-to-Equity footprint at an exceptional 0.03x.

? Operational Linkage : Traditional infrastructure EPC models are highly vulnerable to expensive debt traps when government payments face delays. By maintaining strict leverage control, Your Company insulated its operations from interest rate risks, allowing it to navigate a multi-month payment slowdown without a destabilizing increase in long-term debt.

3. Working Capital & Inventory Performance

Consolidated Inventory value improved dynamically, dropping to 386 Crores from 404 Crores in FY25. Cash and

Bank Balances remained healthy at 80 Crores.

? Operational Linkage : The reduction in inventories validates steady field installation clearances and successful site handovers, which effectively released cash from slow-moving construction assets.

Furthermore, because Your Company was required to pool internal cash reserves to sustain work on critical sites and protect against regulatory or default penalties, our strong liquid asset base proved vital in bridging the operational gap until state revival fund clearances (totaling 27,000 Crores across UP and Rajasthan) began stabilizing standard payment streams heading into Q1FY27.

Consolidated Financial vs. Operational Performance Matrix

Financial Metric	FY26 ( Cr)	FY25 ( Cr)	Y-o-Y Change / Var	Key Operational Underlying Driver
Revenue from Operations	500	713	(30.0%)	Strategic pacing of JJM billing during state payment delays; focus directed to high-priority segments like the Isarda Dam.
EBITDA	28	20	+40.0%	Higher mix of high-margin, complex hydro-mechanical engineering milestones over low-margin general civil activities.
EBITDA Margin	6.0%	3.0%	+281 bps	Stronger cost controls and resource optimization achieved via captive, in-house gate and penstock fabrication.
Finance Costs	19	22	(13.6%)	Reduced reliance on short-term debt extensions; debt managed closely through internal cash flows.
Net Debt-to- Equity	0.03x	0.04x	Comfortably

Headcount and Workforce Composition

As of March 31, 2026, Your Company maintains an active talent base comprising over 350 permanent employees across its corporate headquarters in Jaipur, regional administrative cells, manufacturing facilities, and active project locations nationwide.

This core permanent team is structurally supported by an extended workforce of more than 1,500 specialized contract professionals, site engineers, technical fabricators, and skilled labor pools deployed dynamically across project clusters. This flexible, scalable workforce structure enables Your Company to efficiently manage on-site human resource costs in alignment with key project delivery milestones, such as the major water impounding phase achieved at the Isarda Dam or automated SCADA system rollouts under our urban water network expansions.

B. Talent Acquisition, Upskilling, and Capacity Building

During the fiscal year under review, human resource initiatives were strategically tailored to support the company s ongoing pivot into high-barrier, technologically intensive domains like Pumped Storage Projects (PSPs) and integrated Hydro-Mechanical setups:

? Specialized Engineering Recruitment : Your Company focused its talent acquisition on high-caliber design engineers, hydro-hydraulic consultants, and automated tooling specialists to support our expanding unexecuted order book.

? Technical Upskilling Programs : Continuous training modules were conducted on advanced metallurgy, precision automated welding, and automated quality control protocols to maintain our single-point liability advantage in heavy component manufacturing (such as high-head radial gates and complex steel penstocks).

? On-Site Safety and Zero-Harm Culture : Given the geographical complexities of high-altitude hydro zones and deep river valleys, Your Company conducted extensive, mandatory occupational health and safety (OHS) audits, mock drills, and specialized safety training to insulate field execution teams from high-risk terrain environments.

C. Industrial Relations Front

The industrial relations front across all manufacturing units, captive workshops, and structural construction sites remained entirely peaceful, harmonious, and productive throughout the fiscal year 2025 26. * Zero Operational Disruption: Your Company maintained an unblemished record of zero man days lost due to labor disputes, strikes, or trade union friction.

? Worker Welfare Alignment : Despite industry-wide cash flow elongations caused by state-level rural billing delays, internal control frameworks and strong equity planning prioritized human capital stability. Welfare programs, timely statutory compliance deposits (PF, ESI), and workplace safety updates were executed continuously, preserving a culture of mutual trust and high organizational morale.

Through proactive labor management, transparent communication, and a long-standing commitment to fair compensation practices, Your Company continues to retain its core technical talent, ensuring strong organizational capability to capture India s macro infrastructure upcycle.

9) DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS

Based on the audited consolidated financial statements for the fiscal year ended March 31, 2026, the metrics demonstrate a strategic pivot towards high-margin, technically complex projects alongside strict balance sheet discipline :

(i) Debtors Turnover Ratio

? FY26 : 1.59

? FY25 : 2.57

? Change % : -38.21%

Detailed Explanation : The Trade Receivables Turnover Ratio of the Company has decreased by more than 25% during the year primarily due to a significant decline in turnover as compared to the previous year. Further, slower realization from customers and lower business volumes during the year adversely impacted the receivables turnover cycle.

(ii) Inventory Turnover Ratio

? FY26 : 3.40

? FY25 : 5.18

? Change % : -34.29%

Detailed Explanation : The Inventory Turnover Ratio of the Company has decreased by more than 25% during the year primarily due to a significant decline in sales turnover and lower movement of inventory during the year. Further, reduced demand and lower production/utilization levels led to slower consumption and liquidation of inventory, thereby adversely impacting the ratio.

(iii) Interest Coverage Ratio

? FY25 : 2.23

? FY26 : 2.73

? Change % : -18.14%

Detailed Explanation : Ratio has declined by 18.14% during the period, primarily on account of repayment of borrowings by the Company.

(iv) Current Ratio

? FY26 : 2.44 ? FY25 : 2.39 ? Change % : +2.36%

? Detailed Explanation : No significant changes during the year

(v) Debt-Equity Ratio

? FY26 : 0.03

? FY25 : 0.04

? Change % : -27.55%

Detailed Explanation : The Debt-Equity Ratio of the Company has declined by 27.55% during the period, primarily on account of repayment of borrowings by the Company.

(vi) Operating Profit Margin (%)

? FY26 : 0.22%

? FY25 : 0.17%

(vii) Net Profit Margin (%)

? FY26 : 4.65% ? FY25 : 5.42% ? Change % : -14.09%

Detailed Explanation : The Net Profit Ratio of the Company has declined during the year primarily on account of a significant reduction in turnover along with increased raw material, consumables, and fixed overhead costs. Further, adverse market conditions and lower operational efficiency during the year resulted in reduced overall profitability margins of the Company.

10) DETAILS OF CHANGE IN RETURN ON NET WORTH (RoNW)

Pursuant to regulatory requirements, the comparison of Return on Net Worth with the immediately preceding financial year is detailed below :

Particulars	FY26	FY25	Variance (%)
Return on Net Worth (RoNW %)	2.73%	4.90%	-42.82%

(Calculated as Consolidated Profit After Tax Attributable to Owners / Total Equity)

Detailed Explanation for Significant Change in RoNW:

The Return on Net Worth contracted significantly by 42.8% year-on-year. This change was primarily driven by the arithmetic compression of Consolidated Profit After Tax, which fell to 21 Crore in FY26 from 36 Crore in FY25, combined with an expanding capital base as Total Equity grew to 808 Crores .

Operationally, net return yields compressed because the Company engaged in early expense booking and pooled internal cash reserves to keep projects moving forward during public fund delays. This choice safeguarded the firms execution record and protected it from default or performance penalties, but it temporarily lowered asset utilization returns for the year.

RoNW is positioned to rebound strongly over the next 12 24 months as execution targets expand toward an accelerated revenue guidance of 700 to 750 Crores in FY27, paired with the non-dilutive monetization of 700+ Crores in arbitration awards and real estate liquidations.

DISCLOSURE OF ACCOUNTING TREATMENT

In the preparation of the Consolidated and Standalone Financial Statements of Om Infra Limited for the financial year ended March 31, 2026, the Company has strictly followed the accounting treatment prescribed under the applicable Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013, read with the Companies (Indian Accounting Standards) Rules, 2015 (as amended), and other relevant provisions of the Act.

Statutory Confirmation and Compliance

? No Deviation from Standards: During the fiscal year 2025 26,Your Company has not followed any alternative treatment different from that prescribed under any applicable Accounting Standard (Ind AS).

? True and Fair View Framework : All accounting selections, estimation techniques, and structural provisions including revenue recognition for Engineering, Procurement, and Construction (EPC) contracts under Ind AS 115 (Revenue from Contracts with Customers) and joint-venture reporting under Ind AS 108 (Operating Segments) have been applied uniformly. The underlying policies consistently reflect a true and fair view of the financial position, operational results, and cash flows of the Company and its subsidiaries.

Future Disclosure Mandate

In accordance with corporate governance best practices, should any transaction arise in future financial years where the management adopts a treatment different from the prescribed standard to present a more representative true and fair view, Your Company will explicitly disclose:

1. The clear accounting facts of the deviation;

2. The alternative treatment utilized; and

3. The thorough management explanation justification linking the alternative framework to the underlying commercial essence of the business transaction.

11.) Cautionary Statement

Statements in this Management Discussion & Analysis describing the Company s objectives, projections, estimates, expectations, or predictions may be forward-looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Company s operations include, among others, economic conditions affecting demand and supply, changes in government regulations and tax regimes, and other incidental factors.