1. COMPANY OVERVIEW
PBA Infrastructure Limited ("PBA" or "the Company"), formerly known as Prakash Building Associates Ltd., was founded in 1974. Over the years, the Company has established itself as a professionally managed and quality-conscious organisation with experience in undertaking and executing infrastructure projects across various parts of India.
The Company is primarily engaged in the construction of highways, bridges, runways, heavy RCC structures and other infrastructure projects. The Company became a Public Limited Company in November 2005 and its equity shares are listed on BSE Limited, Mumbai.
The Company had consistently declared dividends to its shareholders since its Initial Public Offer, with the last dividend of 10% being declared in 2010.
The Company started facing financial challenges from 2010 onwards on account of the slowdown in the infrastructure sector, high working capital requirements, substantial interest costs and blockage of receivables at various Government levels. In addition, certain work orders awarded to the Company and put into operation were subsequently cancelled due to non-availability of the required land by the concerned authorities. Consequently, several matters were referred to arbitration for recovery of claims.
These circumstances adversely affected the Companys operations and financial position and resulted in various legal and financial challenges. Due to continuing irregularities in operations, the consortium bankers discontinued further financing and extension of guarantees and issuance of new guarantees, and the Companys accounts were classified as Non-Performing Assets.
2. INDUSTRY REVIEW
Introduction
India has one of the worlds largest road networks, with road transportation continuing to play a significant role in the movement of freight and passengers. Improvement in road connectivity between cities, towns and villages has contributed to increased economic activity, trade and mobility.
The continued expansion of road infrastructure, increasing freight movement, urbanisation and Government-led investment in highways, bridges, expressways and economic corridors are expected to support the long-term growth of the road and infrastructure sector.
Market Developments
National highway construction has witnessed significant growth over the past decade. The sector has continued to benefit from Government initiatives aimed at improving connectivity, reducing logistics costs and promoting infrastructure-led economic growth.
The development of expressways, economic corridors and multimodal infrastructure, together with initiatives such as PM Gati Shakti and Bharatmala, continues to support the expansion and modernisation of Indias transportation infrastructure.
The Governments continued emphasis on public capital expenditure and infrastructure development is expected to sustain demand for construction and allied infrastructure services.
As stated in the source material, the allocation for the Ministry of Road Transport and Highways in Union Budget 2026-27 is estimated at 3,09,875 crore, representing an increase over the revised estimate for 2025-26. The allocation includes expenditure towards national highways, roads and bridges and road transport and safety.
The sector is also witnessing increasing participation from private investors through Public-Private Partnership models, InvITs, Toll-Operate-Transfer arrangements and other asset monetisation initiatives.
Key Investments and Developments
The road and infrastructure sector continues to witness investments in greenfield highways, expressways, economic corridors, bridges and regional connectivity projects.
The proposed development of the Amaravati Outer Ring Road, improvement of strategic connectivity in Jammu & Kashmir, development of economic corridors and other highway projects reflect the Governments continued emphasis on improving regional connectivity and facilitating efficient movement of goods and passengers.
The Company believes that the continued development of Indias road network, together with the Governments focus on logistics efficiency and multimodal connectivity, provides long-term opportunities for experienced infrastructure contractors.
3. GOVERNMENT INITIATIVES
The Government continues to undertake several measures for strengthening Indias road and transportation infrastructure. Important initiatives referred to in the source material include:
These initiatives are expected to improve connectivity, reduce logistics costs and provide opportunities for construction and infrastructure companies.
4. ROAD AHEAD
The Governments continued focus on infrastructure development, connectivity, logistics efficiency and public capital expenditure is expected to support the long-term growth of the construction and infrastructure sector.
The development of highways, expressways, economic corridors, bridges and multimodal connectivity projects is likely to create opportunities for EPC contractors and infrastructure developers.
The Company intends to evaluate suitable opportunities in the infrastructure sector, including opportunities through Joint Ventures, while giving due consideration to project viability, funding requirements, execution capability and associated risks.
5. OPPORTUNITIES AND THREATS
Opportunities
Indias continued focus on infrastructure development and transportation connectivity presents opportunities for the construction sector. The Governments investment in highways, bridges, expressways, economic corridors and other infrastructure projects is expected to support demand for construction services.
The Company has experience in the construction of highways, bridges, runways, heavy RCC structures and other infrastructure projects. The Company believes that its experience and execution capabilities, together with opportunities arising through Joint Ventures, may enable it to participate in suitable projects in the roads, bridges and allied infrastructure segments.
The Company remains cautiously optimistic about the long-term prospects of the infrastructure sector and will continue to evaluate commercially viable opportunities.
Threats
The Companys operations may be affected by various external factors, including political and economic instability, geopolitical tensions, wars, terrorism, international conflicts and natural disasters.
Infrastructure projects are also exposed to risks arising from delays in statutory approvals, land acquisition, availability of equipment and skilled manpower, project execution, cost escalation and financing constraints.
Fluctuations in the prices and availability of key construction materials, including cement, sand and other raw materials, may adversely affect project costs and margins. Increased competition and changes in the regulatory environment may also affect the Companys operations.
The Company continues to monitor these risks and take appropriate measures, as considered necessary, to mitigate their potential impact.
6. ANNOUNCEMENTS IN THE UNION BUDGET 2026-27
The Union Budget 2026-27 has continued to place significant emphasis on infrastructure development. Public capital expenditure has been proposed at Rs.12.2 lakh crore for FY 2026-27, supporting continued investment in infrastructure.
The Budget has also proposed a strong push to infrastructure and connectivity, including the development of new Dedicated Freight Corridors and seven High-Speed Rail corridors as growth connectors.
These initiatives, together with continued Government investment in transportation infrastructure, are expected to support economic activity and create opportunities for the construction and infrastructure sector, including roads, bridges and allied infrastructure.
6. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE
The financial performance of the Company for the year ended 31 March 2026 has been reviewed with reference to the Companys operational performance. The financial statements have been prepared in accordance with the applicable Indian Accounting Standards (Ind AS).
Financial Highlights
| Particulars | 2025-26 | 2024-25 | 2023-24 |
| Revenue from Operations | 2484.35 | 4587.95 | 7980.18 |
| EBITDA | (7410.13) | 580.26 | 1758.01 |
| PBT | (7844.30) | 136.54 | 163.82 |
| PAT | (8201.74) | 222.15 | 245.39 |
During the year under review, the Company recorded a decline in revenue from operations as compared with the previous year.
The decline in revenue was primarily attributable to the near completion of the Omega Project at Solapur, which was entrusted by NHAI to its concessionaire.
The Company has also pursued arbitration proceedings in respect of certain projects and has received awards in its favour. The concerned authorities have challenged the awards before the courts and the matters remain pending.
One Time Settlement
The Company continues to engage with the consortium banks for resolution of its outstanding liabilities through a One-Time Settlement (OTS). Pursuant to earlier discussions with the lenders, the Company has submitted and revised various OTS proposals from time to time, taking into consideration the feedback received from the consortium banks and the Companys financial position and assessment of available resources.
As on the date of this Report, the consortium banks have not conveyed their approval to any of the OTS proposals submitted by the Company. Discussions and negotiations with the lenders are continuing, and the management remains actively engaged with the consortium banks, including the appropriate senior authorities, with a view to arriving at mutually acceptable, commercially feasible and sustainable settlement terms.
The Company will continue to pursue the matter with the lenders in a constructive manner and remains committed to exploring all reasonable avenues for an amicable resolution of its outstanding obligations.
7. RISKS AND CONCERNS
The Companys operations in the infrastructure sector expose it to various risks, including credit risk, market risk, liquidity risk, interest rate risk, foreign exchange risk, operational risk and legal risk.
Infrastructure projects are generally capital intensive and may be affected by:
The Companys objective is to proactively identify, assess and monitor material risks and to implement appropriate measures to mitigate their potential impact, while maintaining a suitable balance between pursuing business opportunities and managing associated risks.
8. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has systems of internal control designed to ensure that its resources are used efficiently and effectively, its assets are adequately safeguarded, and transactions are properly authorised, recorded and reported.
The internal control framework is supplemented by internal audit, management review and documented policies, procedures and guidelines. The Management periodically reviews the adequacy and effectiveness of the internal control systems and takes corrective measures wherever considered necessary.
9. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATION
Human resources remain an important component of the Companys operations. The Company continues to focus on improving its human resource processes, practices and systems in line with its organisational objectives.
As on 31 March 2026, the Company had 41 permanent employees.
The Company maintains cordial relations with its employees and continues to encourage a professional, responsible and performance-oriented work environment.
As on 31 March 2026, the Company had 41 permanent employees.
The Company maintains cordial relations with its employees and continues to encourage a professional, responsible and performance-oriented work environment.
10. OUTLOOK
The infrastructure sector continues to remain an important driver of Indias economic growth and development. The Governments continued emphasis on public capital expenditure, road connectivity, transportation infrastructure and economic corridors is expected to support the sector over the medium to long term.
The Company remains cautiously optimistic about the future prospects of the infrastructure sector. With its experience in highways, bridges and other infrastructure projects, the Company intends to evaluate suitable business opportunities, including opportunities through Joint Ventures.
At the same time, the Company will continue to take into consideration project viability, funding requirements, execution risks, commercial terms and the overall financial implications before undertaking new projects.
The Company remains committed to strengthening its business capabilities and pursuing sustainable opportunities while maintaining prudent risk management.
11. SOCIAL COMMITMENT
The Company believes that business success is not an end in itself but is also a means of contributing towards broader socio-economic objectives.
The Company is committed to conducting its business in a responsible manner and seeks to maintain appropriate standards of management commitment, work ethics and business practices. The Company encourages its employees and other stakeholders to contribute positively towards the communities and society in which it operates.
12. DETAILS OF KEY FINANCIAL RATIOS
The key financial ratios of the Company for the financial year ended 31 March 2026 and the previous financial year should be disclosed in accordance with the applicable requirements, together with the percentage change and an appropriate explanation for any significant change.
The ratios should be inserted after reconciliation with the audited financial statements and supporting financial data.
| Sr. No. Ratios | 31-Mar-26 | 31-Mar-25 | % Change | Reason for Variance |
| 1 Current Ratio | 0.13 | 0.29 | -55.70% | Current Assets increased due to increase in WIP Stock due to work done but not certified by department. |
| Sr. No. Ratios | 31-Mar-26 | 31-Mar-25 | % Change | Reason for Variance |
| 2 Debt-Equity Ratio | -2.06 | -3.53 | -41.68% | Decrease in Companys net worth due to losses incurred during the year. |
| 3 Debt Service Coverage Ratio | 0 | 60.93 | -100.00% | Due to Negative EBITDA as compared to previous year |
| 4 Return on Equity Ratio | 41.68% | -1.94% | -2252.86% | Due to Losses incurred during the year leading to negative shareholders fund |
| 5 Inventory Turnover Ratio | 138.18% | 0.40 | 241.20% | Increased in COGS during the year and lower average inventory as compared to previous year |
| 6 Trade Receivables Turnover Ratio | 0.33 | 0.56 | -40.48% | Due to Lower sales during the year leading to reduction in trade receivables as compared to previous year. |
| 7 Trade Payables Turnover Ratio | 0.73 | 1.32 | -44.38% | Due to Lower purchase during the year, while the trade payables remains constant at almost same level. |
| 8 Net Capital Turnover Ratio | -0.08 | -0.02 | 231.45% | Due to Negative working capital along with reduction in sales |
| 9 Net Profit Ratio | -330.14% | 4.84% | -6917.17% | Due to lower sales during the year leading to substantial losses. |
| 10 Return on Capital Employed | 55.32% | -2.45% | -2355.56% | Due to losses incurred during the year & negative capital employed arising. |
| 11 Return on Investment | -33.63% | 0.67% | -5113.40% | Due to Substantial losses incurred as compared to previous year. |
*Previous years Figures have been regrouped / rearranged wherever necessary
| Sr. No. Ratios | 31-Mar-26 | 31-Mar-25 | % Change | Reason for Variance |
| 2 Debt-Equity Ratio | -2.06 | -3.53 | -41.68% | Decrease in Companys net worth due to losses incurred during the year. |
| 3 Debt Service Coverage Ratio | 0 | 60.93 | -100.00% | Due to Negative EBITDA as compared to previous year |
| 4 Return on Equity Ratio | 41.68% | -1.94% | -2252.86% | Due to Losses incurred during the year leading to negative shareholders fund |
| 5 Inventory Turnover Ratio | 138.18% | 0.40 | 241.20% | Increased in COGS during the year and lower average inventory as compared to previous year |
| 6 Trade Receivables Turnover Ratio | 0.33 | 0.56 | -40.48% | Due to Lower sales during the year leading to reduction in trade receivables as compared to previous year. |
| 7 Trade Payables Turnover Ratio | 0.73 | 1.32 | -44.38% | Due to Lower purchase during the year, while the trade payables remains constant at almost same level. |
| 8 Net Capital Turnover Ratio | -0.08 | -0.02 | 231.45% | Due to Negative working capital along with reduction in sales |
| 9 Net Profit Ratio | -330.14% | 4.84% | -6917.17% | Due to lower sales during the year leading to substantial losses. |
| 10 Return on Capital Employed | 55.32% | -2.45% | -2355.56% | Due to losses incurred during the year & negative capital employed arising. |
| 11 Return on Investment | -33.63% | 0.67% | -5113.40% | Due to Substantial losses incurred as compared to previous year. |
13. CHANGE IN RETURN ON NET WORTH
As at 31 March 2026, the Net Worth of the Company stood at negative Rs.196.77 crore, as compared with negative Rs.114.76 crore as at 31 March 2025.
The change in Net Worth is primarily attributable to the loss incurred during the financial year under review.
14. CAUTIONARY STATEMENT
Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations and outlook may constitute forward-looking statements within the meaning of applicable laws and regulations.
Actual results may differ materially from those expressed or implied due to various factors, including changes in economic and business conditions, developments in the infrastructure sector, changes in Government policies and regulations, fluctuations in input costs, interest rates and foreign exchange rates, availability of financing, litigation and other risks and uncertainties.
The Company assumes no obligation to publicly update or revise any forward-looking statements, except as may be required under applicable laws and regulations.
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