Ravita Engineering Services Ltd Management Discussions

OPERATIONS

You should read the following discussion of our financial condition and results of operations together with our restated financial information for the nine months period ended December 31, 2025, and financial years ended March 31,2025, March 31, 2024, and March 31, 2023. Our Restated Financial Statements have been derived from our audited financial statements and restated in accordance with the SEBIICDR Regulations and the ICAI Guidance Note. Our financial statements are prepared in accordance with Indian GAAP, including the schedules, annexures and notes thereto and the reports thereon, included in the section titled "Restated Financial Information " on page 240 of this Draft Red Herring Prospectus. Unless otherwise stated, the financial information used in this section is derived from the restated financial statements of our Company.

This discussion contains forward-looking statements and reflects our current views with respect to future events and financial performance. Actual results may differ materially from those anticipated in these forward-looking statements as a result ofcertain factors such as those setforth in the sections titled "Risk Factors " and "Forward- Looking Statements " on pages 23, 21 and respectively, of this Draft Red Herring Prospectus.

These financial statements have been prepared in accordance with Indian GAAP. Indian GAAP differs in certain significant respects from U.S. GAAP, IFRS and Ind AS. We have neither attempted to quantify the impact of IFRS or U.S. GAAP on the financial data included in this Draft Red Herring Prospectus nor do we provide a reconciliation of our financial statements to those under U.S. GAAP or IFRS or Ind AS. Accordingly, the degree to which the Indian GAAP financial statements included in this Draft Red Herring Prospectus will provide meaningful information is entirely dependent on the readers level offamiliarity with the Companies Act, Indian GAAP and the SEBI ICDR Regulations. Any reliance on the financial disclosure in this Draft Red Herring Prospectus, by persons not familiar with Indian Accounting Practices, should accordingly be limited.

References to the "Company", "we", "us" and "our" in this chapter refer to Ravita Engineering Services Limited (formerly known as Powermech Services Private Limited) as applicable in the relevant fiscal period, unless otherwise stated.

OVERVIEW OF OUR BUSINESS

We are an engineering solutions company engaged in Engineering, Procurement, Installation and Commissioning ("EPIC") of heating, ventilation and air-conditioning ("HVAC") systems, central air-conditioning solutions, air flow systems, chiller plants, industrial compressors, cooling equipment and other related electromechanical equipment on a turnkey basis for diverse commercial and industrial establishments including offshore rigs, platforms and other installations. We also provide comprehensive operation and maintenance ("O&M") services for both projects executed by us and systems installed by third-party solution providers.

We are also currently engaged in execution of a specialised niche engineering project viz., laying of sub-sea discharge pipelines for effluent treatment plant ("ETP") at Paradeep, Odisha.

We classify our business operations under three areas of expertise, viz., (i) Onshore; (ii) Offshore; and (iii) Data Center.

Our Onshore operations are carried out at commercial establishments, hospitality units, corporate parks and industrial facilities, amongst others. We have undertaken our Onshore operations in states like Gujarat, Maharashtra, Odisha and Karnataka. Our order book for Onshore operations as on December 31, 2025 were Rs. 14,225.26 lakhs for EPIC projects, Rs. 622.94 lakhs for O&M services and Rs. 14,904.96 lakhs for Hybrid projects.

Our Offshore operations are carried out at rigs, platforms and other offshore marine installations located in territorial waters of India. In last three fiscal years and nine months period ended December 31, 2025, we have undertaken our operations at 6 rigs and 16 associated offshore oil and gas platforms located in territorial waters of India. Our order book for Offshore operations as on December 31, 2025 were Rs. 8,301.83 lakhs for EPIC projects and t 2,507.62 lakhs for O&M services.

Our Data Center operations comprise of operations and maintenance of cooling systems, chiller plants, HVAC equipment and mechanical utilities to support the uptime, reliability and temperature-control requirements of data

center operations. Currently, we provide our data center O&M services to one of a large Indian conglomerate at their data center facility at Navi Mumbai. Our order book for Data Center operations as on December 31, 2025 were Rs. 7,403.63 lakhs for O&M services.

Our Company is presently led by Vibhoar Agrawal, Chairman and Executive Director, who is also one of the promoters our company and Sunildutt Narayan Goswami, Managing Director and Chief Executive Officer of our Company. Vibhoar Agrawal, along with other members of the Promoter and Promoter Group, took over the operations and control of the Company in February 2025 by acquiring 100% shareholding of the Company. Vibhoar Agrawal has been associated with the engineering and EPC industry since several years and has played a significant role in the growth and development of our Company in recent period. Sunildutt Narayan Goswami, a Merchant Marine Officer and a member of Institute of Marine Engineers (India) and Indian Institution of Plant Engineers, had an expansive career spanning over 20 years and has been associated with our Company since 2010. His experience in merchant navy and as an engineer has been pivotal in laying the groundwork of our Company. As on December 31, 2025, our operations are supported by a qualified workforce of over 400+ employees.

For further details, please see "Our Business" on page 172 of this Draft Red Herring Prospectus.

SIGNIFICANT FACTORS AFFECTING OUR RESULTS OF OPERATIONS

Our financial condition and results of operations are affected by numerous factors and uncertainties, including those discussed in the section entitled "Risk Factors" on page 23 of this Draft Red Herring Prospectus. The following are certain factors that have had, and we expect will continue to have, a significant effect on our financial condition and results of operations:

Cost of Services Rendered

Our ability to maintain competitiveness and profitability depends, in part, on our ability to efficiently manage the cost of services rendered in relation to our project execution activities. Our cost of services rendered primarily includes expenses relating to contract payments, material purchases, and other direct costs incurred for the execution of projects and services. For the nine month period ended December 31, 2025 and financial year ended March 31, 2025, financial year ended March 31, 2024 and financial year ended March 31, 2023, our cost of services rendered amounted to Rs.16,608.89 lakhs, Rs.8,534.27 lakhs, Rs.831.27 lakhs and Rs.1,448.20 lakhs, respectively, representing 79.73%, 78.08%, 61.45% and 77.85%, respectively, of our total income during the respective periods.

Our project execution depends on the timely availability of materials, technical manpower and other project- related inputs at commercially viable prices. Any significant increase in such costs or disruption in their availability may adversely affect our profitability and results of operations.

Availability of technically qualified, proficient manpower and our ability to consistently expand and retain our pool of employees

As an engineering solutions company, we require technically skilled and proficient manpower to execute our projects and O&M projects. As on December 31, 2025, our manpower includes 381 technical staff who are engaged in project management activities.

We secure engineering talent through our own industry network, while investing in a rigorous on-the-job learning ecosystem, all of which enable our workforce to stay abreast of the best engineering practices in the industry in which we operate. This ensures our workforce are able to maintain and enhance their proficiency in their respective areas of expertise, making the retention of such expertise critical to sustaining our project delivery excellence.

Segment mix and growth in individual business area

We classify our projects under three distinct areas of expertise, viz., (i) Onshore; (ii) Offshore; and (iii) Data Centre. Historically, gross margins (in terms of percentage of revenue) has been highest in data centre operations, followed by offshore and onshore. Following is revenue from operations and business-wise margins for each of our business area for last three financial year and nine months period ended December 31, 2025:

(Rs. in lakhs, except ratios)

	Nine months period ended December 31, 2025	Fiscal 2025	Fiscal 2024	Fiscal 2023
Data Centre Particulars Revenue from operations
	2,492.95	3,081.48	507.58	353.75
Less: Cost of service rendered	1,739.19	2,148.94	288.35	246.07
Gross Margins	753.76	932.54	219.23	107.68
Gross Margin (% of revenue)	30.24%	30.26%	43.19%	30.44%
Offshore
Revenue from operations	6,977.24	2,665.26	637.44	345.80
Less: Cost of service rendered	5,365.70	2,072.88	405.91	249.29
Gross Margins	1,611.54	592.38	231.54	96.51
Gross Margin (% of revenue)	23.10%	22.23%	36.32%	27.91%
Onshore
Revenue from operations	11,350.31	5,114.53	204.23	1,156.94
Less: Cost of service rendered	9,504.00	4,312.45	137.01	952.84
Gross Margins	1,846.31	802.08	67.21	204.11
Gross Margin (% of revenue)	16.27%	15.68%	32.91%	17.64%

Traditionally, onshore operations have the largest contribution to our total revenue from operations. However, as we grow our business, the revenue from operations, profitability and cashflows may change due to change in segment-mix.

Order book, new orders and terms of contracts awarded

Our current order book and the new orders that we receive have a significant impact on our future revenue and business performance. Our order book as of any particular date represents the value of outstanding orders, being the total contract value of projects secured by us, reduced by the value of work executed and billed up to such date.

The value and timing of orders received by us influence our future operating performance. We typically evaluate projects and accept orders after considering various factors, including expected profit margins, costs involved and execution timelines. Accordingly, any cancellation, modification, premature foreclosure or termination of projects by our customers may adversely affect our future revenue and results of operations.

Seasonality

Our business may be subject to seasonal variations depending on project execution cycles and the timing of order inflows from our customers. Project execution activities may vary during certain periods of the year due to factors such as weather conditions, site readiness, customer project schedules and other operational considerations.

Any disruption or delay in project execution arising from seasonal factors or adverse weather conditions may affect our project timelines, billing cycles and revenue recognition during the relevant periods. Consequently, such factors may impact our results of operations for the respective financial year.

Competition

We operate in a competitive environment and face competition from various large domestic players operating in similar business segments. For details in relation to the risks associated with such competition, see "Risk Factors - We face certain competitive pressures from existing competitors and new entrants, in both public and private sector. Increased competition and aggressive bidding by such competitors may make our ability to procure business in future uncertain which may adversely affect our business, financial condition and results of operations." on page 30 of this Draft Red Herring Prospectus. While we seek to maintain competitive pricing and build long-term relationships with our customers through effective project execution and service quality, we may be required to respond to evolving market conditions and competitive strategies adopted by other market participants.

In addition, certain competitors may have greater financial, technical or other resources, which may enable them to compete more aggressively in terms of pricing, project execution capabilities or geographic presence. Our ability to compete effectively depends on factors such as our project execution capabilities, cost management, technical expertise and ability to service both domestic and offshore clients. Any increase in competitive intensity in the markets in which we operate may adversely affect our market share, margins and results of operations.

Project portfolio /geographical distribution ofprojects

Our current project portfolio predominantly comprises projects located in the state of Maharashtra. Our ability to secure new projects within our existing areas of operation, as well as expand our presence into other geographies, will influence our future order inflows and revenue growth. Our projects include engagements with various corporate and industrial clients.

While a significant portion of our projects are currently concentrated in Maharashtra, we continue to explore opportunities to expand our geographical footprint, including projects for offshore clients. We believe that our ability to secure projects across diverse client segments and geographies will contribute to the growth of our order book and revenue in future periods.

Access to capital and cost of financing

Our business is working capital intensive. Significant working capital is required to finance procurement of materials, engagement of subcontractors and execution of projects prior to receipt of payments from our clients. We typically meet our working capital requirements through bank borrowings, client advances and internal accruals.

Our ability to access capital on commercially acceptable terms is important for the continued growth of our operations. Any limitation on our ability to obtain financing on acceptable terms may adversely affect our business operations and growth.

SIGNIFICANT ACCOUNTING POLICIES

The accounting policies have been applied consistently to the periods presented in the Restated Financial Statements. For details of our significant accounting policies, please refer section titled "Financial information on page 240 of this Draft Red Herring Prospectus.

RESULTS OF OUR OPERATIONS

The following discussion on results of operations should be read in conjunction with the Restated Financial Statements of the Company for the nine months ended December 31, 2025 and for the financial years ended March 31, 2025, March 31, 2024 and March 31, 2023:

(Rs. in lakhs, except ratios)

Particulars	Nine months period ended December 31, 2025		Financial Year 2025		Financial Year 2024		Financial Year 2023
	Amount	% of Total Income	Amount	% of Total Income	Amount	% of Total Income	Amount	% of Total Income
Revenue from Operations	20,820.50	99.95%	10,861.27	99.37%	1,349.25	99.74%	1,856.50	99.80%
Other Income	11.40	0.05%	68.75	0.63%	3.52	0.26%	3.74	0.20%
Total Income	20,831.90	100.00%	10,930.02	100.00%	1,352.77	100.00%	1,860.24	100.00%
Cost of Services Rendered	16,608.89	79.73%	8,534.27	78.08%	831.27	61.45%	1,448.20	77.85%
Employee Benefits expenses	277.16	1.33%	192.80	1.76%	157.95	11.68%	225.88	12.14%
Finance costs	59.05	0.28%	34.54	0.32%	64.58	4.77%	74.24	3.99%
Depreciation and Amortization expenses	152.77	0.73%	17.99	0.16%	16.14	1.19%	11.44	0.61%
Other expenses	928.42	4.46%	569.19	5.21%	73.90	5.46%	81.48	4.38%
Total Expenses	18,026.29	86.53%	9,348.79	85.53%	1,143.84	84.56%	1,841.24	98.98%
Profit /(Loss) before tax	2,805.61	13.47%	1,581.23	14.47%	208.93	15.44%	19.00	1.02%
Tax expense:
- Current Tax	723.74	3.47%	384.24	3.52%	60.96	4.51%	18.24	0.98%
- Deferred Tax	(17.62)	-0.08%	14.29	0.13%	(2.83)	-0.21%	(10.08)	-0.54%
Profit/(Loss) after tax	2,099.49	10.08%	1,182.70	10.82%	150.80	11.15%	10.84	0.58%

PRINCIPAL COMPONENTS OF OUR STATEMENT OF PROFIT AND LOSS ACCOUNT Total Income

Our total income for the nine months period ended December 31, 2025 and for the financial years ended March 31, 2025, March 31, 2024 and March 31, 2023 amounted to Rs.20,831.90 lakhs, Rs.10,930.02 lakhs, Rs. 1,352.77 lakhs and Rs.1,860.24 lakhs, respectively. Our revenue comprises of revenue from operations and other income.

Revenue from operations

Our revenue from operations comprises of revenue from execution of EPC projects and O&M contracts. Our revenue from operations amounted to Rs.20,820.50 lakhs, Rs.10,861.27 lakhs, Rs. 1,349.25 lakhs and Rs. 1,856.50 lakhs representing 99.95%, 99.37%, 99.74% and 99.80% of our total income for nine months period ended December 31, 2025 and for the financial years ended March 31,2025, March 31, 2024 and March 31, 2023, respectively.

Other income

Other income comprises of interest on deposits, income tax refund, rental income and key man insurance receipts. Our other income amounted to Rs.11.40 lakhs, Rs.68.75 lakhs, Rs. 3.52 lakhs and Rs. 3.74 lakhs and accounted for 0.05%, 0.63%, 0.26%and 0.20% of our total income for nine months period ended December 31, 2025 and for the financial years ended March 31, 2025, March 31, 2024, and March 31, 2023, respectively.

Expenses

Our total expenses for nine months period ended December 31, 2025, and for the financial years ended March 31,2025, March 31, 2024 and March 31, 2023 amounted to Rs.18,026.29 lakhs, Rs.9,348.79 lakhs, Rs.1,143.84 lakhs and Rs.1,841.24 lakhs, respectively. Our expenses primarily consist of the following:

Cost of services rendered

Cost of materials consumed amounted to Rs.16,608.89 lakhs, Rs.8,534.27 lakhs, Rs.831.27 lakhs and Rs.1,448.20 lakhs for the nine months period ended December 31, 2025, and for the financial years ended March 31,2025, March 31, 2024 and March 31, 2023, respectively comprising 79.73%, 78.08%, 61.45%, and 77.85% of the total income, respectively.

Employee benefits expense

Employee benefits expenses consist of directors remuneration, salaries and wages, contribution to provident and other funds, staff welfare expenses and gratuity. Employee benefits expenses for the nine months period ended December 31, 2025 and for the financial years ended March 31,2025, March 31, 2024 and March 31, 2023 amounted to Rs.277.16 lakhs, Rs.192.80 lakhs, Rs.157.95 lakhs, and Rs.225.88 lakhs, respectively which accounted for 1.33%, 1.76%, 11.68%, and 12.14% of our total income, respectively.

Other expenses

Other expenses consist of repairs and maintenance charges, legal and professional fees, advertisement and business promotion expenses, audit fees, lease rental, insurance and license fees, conveyance & travel expenses, printing & stationary expenses, transportation and freight charges, power and fuel, office expenses, rates & taxes and miscellaneous expenses. Other expenses for the nine months period ended December 31, 2025 and for the financial years ended March 31,2025, March 31, 2024, and March 31, 2023 amounted to Rs.928.42 lakhs, Rs.569.19 lakhs, Rs.73.90 lakhs, and Rs.81.48 lakhs, respectively which accounted for 4.46%, 5.21%, 5.46%, and 4.38% of our total income, respectively.

Finance Costs

Finance cost consists of interest on borrowings, bank guarantee charges and other borrowing costs which amounted to Rs.59.05 lakhs, Rs.34.54 lakhs, Rs.64.58 lakhs, and Rs.74.24 lakhs for the nine months period ended

December 31, 2025 and for the financial years ended March 31,2025, March 31, 2024, and March 31, 2023, which accounted for 0.28%, 0.32%, 4.77%, and 3.99% of our total income, respectively.

Depreciation and Amortization

Depreciation and amortization represent depreciation on property, plant & equipment and intangible assets. Depreciation and amortization expense amounted to Rs.152.77 lakhs, Rs.17.99 lakhs, Rs.16.14 lakhs, and Rs.11.44 lakhs for the nine months period ended December 31, 2025 and for the financial years ended March 31,2025, March 31, 2024, and March 31, 2023, respectively which accounted for 0.73%, 0.16%, 1.19%, and 0.61% of our total income, respectively.

FINANCIAL YEAR 2025 COMPARED TO FINANCIAL YEAR 2024 Total Income

Our total income increased by 707.97% from Rs. 1,352.77 lakhs in financial year ended March 31, 2024, to Rs.10,930.02 lakhs in financial year ended March 31, 2025, primarily due to the reasons discussed below.

Revenue from operations

Our revenue from operations increased by 704.99% from Rs. 1,349.25 lakhs in the financial year ended March 31, 2024 to Rs.10,861.27 lakhs in the financial year ended March 31, 2025. The increase was primarily attributable to higher order inflows from both new and repeat clients and expansion in project execution activities during the year. During the financial year ended March 31, 2025, we received fresh work orders aggregating to Rs. 17,491.97 lakhs, which supported higher project execution during the year. Consequently, our order book stood at t 8,387.12 lakhs as on March 31, 2025.

Other Income

The increase in other income by 1,853.13% from Rs.3.52 lakhs in the financial year ended March 31, 2024 to Rs. 68.75 lakhs in the financial year ended March 31, 2025 was primarily attributable to one-time proceeds of Rs. 62.39 lakhs received from encashment of keyman insurance policy during the year.

Expenses

Total expenses increased by 717.32% from Rs. 1,143.84 lakhs in financial year ended March 31, 2024, to Rs. 9,348.79 lakhs in financial year ended March 31,2025 primarily due to the reasons discussed below:

Cost of services rendered

Our cost of services rendered increased by 926.65% from Rs.831.27 lakhs in the financial year ended March 31, 2024 to Rs. 8,534.27 lakhs in the financial year ended March 31, 2025. The increase was primarily attributable to the significant expansion in the scale of our operations and execution of multiple projects during the year, which resulted in higher material consumption, increased site execution expenses and higher labour costs associated with such project execution. Consequently, cost of services rendered as a percentage of revenue from operations stood at 78.58% in the financial year ended March 31, 2025 as compared to 61.61% in the financial year ended March 31, 2024. In comparison, the same stood at 78.01% in the financial year ended March 31, 2023, indicating that the cost structure in the financial year ended March 31, 2025 has largely returned to levels comparable with earlier periods following the strategic shift undertaken during the financial year ended March 31, 2024.

Employee benefits expense

Our employee benefits expense increased by 22.06% from Rs. 157.95 lakhs in the financial year ended March 31, 2024 to Rs. 192.80 lakhs in the financial year ended March 31, 2025. The increase was primarily attributable to strengthening of our head office team and operational workforce to support the expanded scale of operations and growing order book. The number of employees at the head office increased from 22 employees as on March 31, 2024 to 36 employees as on March 31, 2025, reflecting our efforts to enhance organisational

capacity to support business growth.

Other expenses

Our other expenses increased by 670.22% from Rs.73.90 lakhs in the financial year ended March 31, 2024 to Rs.569.19 lakhs in the financial year ended March 31, 2025, primarily due to the significant increase in the scale of our operations during the year. The increase was mainly attributable to higher administrative and office expenses, which increased from Rs.8.46 lakhs in the financial year ended March 31, 2024 to Rs. 211.34 lakhs in the financial year ended March 31, 2025, higher transportation and freight expenses, which increased from Rs.0.57 lakhs in the financial year ended March 31, 2024 to Rs.22.52 lakhs in the financial year ended March 31, 2025 due to increased movement of materials across multiple project locations, and higher repair and maintenance expenses, which increased from Rs.11.45 lakhs in the financial year ended March 31, 2024 to Rs.135.10 lakhs in the financial year ended March 31, 2025, primarily on account of maintenance of our fixed assets, which increased to Rs.1,092.89 lakhs as at March 31, 2025 from Rs.123.70 lakhs as at March 31, 2024. Further, advertisement and business promotion expenses increased to Rs.61.58 lakhs in the financial year ended March 31, 2025 as compared to nil in the financial year ended March 31, 2024.

Finance costs

Finance costs decreased by 46.52% from Rs.64.58 lakhs in the financial year ended March 31, 2024 to Rs.34.54 lakhs in the financial year ended March 31, 2025. The decrease was primarily attributable to the closure of certain borrowings from financial institutions and increased reliance on interest-free unsecured loans from related parties.

Depreciation and amortization

Depreciation and amortization expenses increased by 11.46% from Rs. 16.14 lakhs in financial year ended March 31, 2024, to Rs.17.99 lakhs in financial year ended March 31,2025, primarily on account of addition of fixed assets during the year.

Profit after tax

The profit after tax increase from Rs.150.80 lakhs in financial year ended March 31, 2024, to Rs.1,182.70 lakhs for financial year ended March 31,2025. The increase in profit after tax and PAT margin for financial year ended March 31,2025 as compared to financial year ended March 31,2024 was primarily on account of substantial growth in revenue from operations, improved project execution and operating performance during the year.

FINANCIAL YEAR 2024 COMPARED TO FINANCIAL YEAR 2023 Total Income

Our total income decreased by 27.28 % from Rs.1,860.24 lakhs in financial year ended March 31, 2023, to Rs.1,352.77 lakhs in financial year ended March 31, 2024, primarily due to reasons discussed below:

Revenue from operations

Our revenue from operations decreased by 27.32% from Rs.1,856.50 lakhs in financial year ended March 31, 2023, to Rs.1,349.25 lakhs in financial year ended March 31, 2024. The decrease was primarily attributable to our strategic focus on undertaking projects with relatively higher gross margins and selective participation in contracts during the year.

Other Income

The decrease in other income by 5.88% from Rs.3.74 lakhs in financial year ended March 31, 2023 to Rs.3.52 lakhs in financial year ended March 31, 2024 and was primarily due to reduction in interest income on account of fixed deposits due to their maturity. It reduced from Rs.3.59 lakhs in financial year ended March 31, 2023 to Rs.3.10 lakhs in financial year ended March 31, 2024.

Expenses

Total expenses decreased by 37.88% from Rs.1,841.24 lakhs in financial year ended March 31, 2023, to Rs.1,143.84 lakhs in financial year ended March 31,2024 primarily due to reasons as discussed below:

Cost of services rendered

Cost of services rendered decreased by 42.60% from Rs.1,448.20 lakhs in financial year ended March 31, 2023, to Rs.831.27 lakhs in financial year ended March 31, 2024, primarily due to change in project mix which led to a reduction in contract payments and material purchases during the year.

Employee benefits expense

Our employee benefits expense decreased by 30.07% from Rs.225.88 lakhs in the financial year ended March 31, 2023 to Rs.157.95 lakhs in the financial year ended March 31, 2024. The decrease was primarily attributable to a reduction in salaries and wages from ^ 116.69 lakhs in the financial year ended March 31, 2023 to Rs.88.63 lakhs in the financial year ended March 31, 2024, a decrease in provision for gratuity from Rs.46.30 lakhs in the financial year ended March 31, 2023 to Rs.10.28 lakhs in the financial year ended March 31, 2024, and a reduction in staff welfare expenses from Rs.8.36 lakhs in the financial year ended March 31, 2023 to Rs.5.19 lakhs in the financial year ended March 31, 2024.

Other expenses

Our other expenses decreased by 9.30% from Rs.81.48 lakhs in the financial year ended March 31, 2023 to Rs.73.90 lakhs in the financial year ended March 31, 2024. The decrease was primarily attributable to a reduction in transportation and freight expenses from Rs.12.65 lakhs in the financial year ended March 31, 2023 to Rs.0.57 lakhs in the financial year ended March 31, 2024 and reduction in office expenses from Rs. 18.33 lakhs in the financial year ended March 31, 2023 to Rs. 8.46 lakhs in the financial year ended March 31, 2024. The reduction in office expenses and transportation and freight expenses was off-set by increase in other miscellaneous expenses from Rs. 6.13 lakhs in financial year ended March 31, 2023 to Rs. 17.15 lakhs in financial year ended March 31, 2024.

Finance costs

Finance costs decreased by 13.01% from Rs.74.24 lakhs in the financial year ended March 31, 2023, to Rs.64.58 lakhs in the financial year ended March 31, 2024, primarily due to (i) lower utilization of loans and (ii) repayment of loans. Total borrowings reduced from Rs.614.02 lakhs in financial year ended March 31, 2023, to Rs.352.18 lakhs in financial year ended March 31, 2024.

Depreciation and amortization

Depreciation and amortization expenses increased by 41.08% from ^11.44 lakhs in financial year ended March 31, 2023, to Rs.16.14 lakhs in financial year ended March 31, 2024. The increase was primarily attributable to depreciation charged for the full year in the financial year ended March 31, 2024 on certain fixed assets added during the financial year ended March 31, 2023, which had been depreciated only for a partial period in the previous year.

Profit after tax

The profit after tax increase from Rs.10.84 lakhs in financial year ended March 31, 2023, to Rs.150.80 lakhs for financial year ended March 31,2024. The increase in profit after tax and PAT margin for financial year ended March 31,2024 as compared to financial year ended March 31,2023 was primarily on account of the Companys strategic shift towards higher-margin projects. The increase was further supported by a reduction in employee benefit expenses, and finance costs during the year.

SELECTED RESTATED STATEMENT OF ASSETS AND LIABILITIES

The table below sets forth the principal components of our total assets, equity and liabilities as at the periods indicated in the table below:

(Rs. in lakhs)

Particulars	As at
	December 31, 2025	March 31, 2025	March 31, 2024	March 31, 2023
Total Shareholders funds	9,251.17	1,513.12	330.42	179.62
Total Non-Current Liabilities	161.02	117.69	139.40	240.51
Total Current Liabilities	5,255.62	4,192.92	438.01	560.01
Total Equity and Liabilities	14,667.81	5,823.73	907.83	980.14
Total Non-current Assets	1,067.41	1,148.40	174.46	187.05
Total Current Assets	13,600.40	4,675.33	733.37	793.09
Total Assets	14,667.81	5,823.73	907.83	980.14

Our shareholders funds increased from Rs. 179.62 lakhs as at March 31, 2023 to Rs.330.42 lakhs as at March 31, 2024, Rs. 1,513.12 lakhs as at March 31, 2025 and further to Rs.9,251.17 lakhs as at December 31, 2025. The increase in the financial year ended March 31, 2024 was primarily attributable to profit after tax for the year amounting to Rs.150.80 lakhs. The increase in the financial year ended March 31, 2025 was primarily due to profit after tax of Rs.1,182.70 lakhs for the year. The further increase during the nine months ended December 31, 2025 was primarily on account of profit of Rs.2,099.49 lakhs during the period and issuance of new equity shares amounting to Rs. 5,638.56 lakhs resulting in an increase in paid-up share capital and securities premium.

Our total non-current liabilities decreased from Rs.240.51 lakhs as at March 31, 2023 to Rs.139.40 lakhs as at March 31, 2024, primarily on account of a decrease in long-term borrowings from Rs.196.28 lakhs as at March 31, 2023 to Rs. 84.11 lakhs as at March 31, 2024 which further reduced to Rs.50.81 lakhs as at March 31, 2025, with total non-current liabilities reducing to Rs.117.69 lakhs as at March 31, 2025, largely attributable to a further decrease in long-term borrowings. However, non-current liabilities increased to Rs. 161.02 lakhs as at December 31, 2025, primarily due to an increase in long-term provisions, which increased from Rs. 66.88 lakhs as at March 31, 2024 to Rs.140.84 lakhs as at March 31, 2025.

Our total current liabilities (i) decreased from Rs. 560.01 lakhs as at March 31, 2023 to Rs. 438.01 lakhs as at March 31, 2024; and (ii) increased from Rs. 438.01 lakhs as at March 31, 2024 to Rs. 4,192.92 lakhs as at March 31, 2025 and further increased to Rs. 5,255.62 lakhs as at December 31, 2025. The principal component of our short-term borrowings comprises cash credit facilities from banks and loans from other parties and directors. As on date, we have cash credit facilities with sanctioned amount of Rs.2,100 lakhs from ICICI Bank, which have been availed primarily to support our working capital requirements.

Our trade payables (i) decreased from Rs.32.43 lakhs as at March 31, 2023 to Rs. 24.60 lakhs as at March 31, 2024; and (ii) increased from Rs.24.60 lakhs as at March 31, 2024 to Rs. 1,476.39 lakhs as at March 31, 2025 and further increased to Rs. 3,045.09 lakhs as at December 31, 2025, primarily in line with the movement in the scale of our business operations and project execution during the respective periods..

Our total non-current assets decreased from t Rs.187.05 lakhs as at March 31, 2023 to Rs. 174.46 lakhs as at March 31, 2024, primarily on account of a decrease in the written down value of property, plant and equipment from Rs.138.95 lakhs as at March 31, 2023 to Rs.123.70 lakhs as at March 31, 2024. Our total non-current assets increased to Rs. 1,148.40 lakhs as at March 31, 2025, mainly due to addition of new assets in the block of assets amounting to t 987.18 lakhs. Further, total non-current assets decreased to Rs.1,067.41 lakhs as at December 31, 2025, primarily on account of a reduction in the written down value of property, plant and equipment during the period on account of depreciation.

Our total current assets decreased from Rs. 793.09 lakhs as at March 31, 2023 to Rs. 733.37 lakhs as at March 31, 2024, primarily attributable to reduction in amount of cash and cash equivalents from Rs. 343.77 lakhs as at March 31, 2023 to Rs. 37.46 lakhs as at March 31, 2024. Further, our total current assets increased to Rs. 4,675.33 lakhs as at March 31, 2025, mainly due to an increase in short-term loans and advances from Rs. 46.30 lakhs as at March 31, 2024 to t 1,034.39 lakhs as at March 31, 2025, trade receivables from Rs. 370.95 lakhs to Rs. 2,632.67

lakhs, and inventories from Rs.246.86 lakhs to Rs.908.64 lakhs. Our total current assets further increased to Rs. 13,600.40 lakhs as at December 31, 2025, primarily due to an increase in inventories to Rs.3,569.75 lakhs and trade receivables to Rs.6,904.17 lakhs.

CASH FLOWS

The following table sets forth our cash flows for the period indicated:

Particulars	Nine months ended December 31, 2025	Fiscal 2025	Fiscal 2024	Fiscal 2023
Net cash flow from/ (used in) operating activities	(4,378.31)	(913.40)	17.49	81.91
Net cash flow from/ (used in) investing activities	(46.72)	(984.22)	2.62	(21.65)
Net cash flow from/ (used in) financing activities	4,819.19	1,923.82	(326.42)	250.95
Net increase/decrease) in cash and cash equivalents	394.15	26.20	(306.31)	311.22
Cash and cash equivalents at the beginning of the year	63.66	37.46	343.77	32.55
Cash and cash equivalents at the end of the year	457.81	63.66	37.46	343.77

Operating Activities

Nine months period ended December 31, 2025

Our net cash utilized in operating activities was Rs.(4,378,31) lakhs for the nine months period ended December 31, 2025. Our operating profit before changes in working capital was Rs.3,083.86 lakhs which was primarily adjusted against an increase in inventories by Rs.2,661.11 lakhs, increase in trade receivables by Rs.4,271.50 lakhs, increase in short term loans & advances by Rs.1,458.95 lakhs, increase in other current assets by Rs.139.26 lakhs, increase in trade payables by Rs.1,568.70 lakhs, increase in current liabilities by Rs.304.13 lakhs and decrease in provisions by Rs.80.44 lakhs.

Financial Year 2024-25

Our net cash utilized in operating activities was Rs.(913.40) lakhs for the financial year ended March 31,2025. Our operating profit before changes in working capital was Rs.1,642.39 lakhs which was primarily adjusted against an increase in inventories by Rs.661.78 lakhs, increase in trade receivables by Rs.2,261.72 lakhs, increase in short term loans & advances by Rs.1,007.13 lakhs, increase in other current assets by Rs.4.17 lakhs, increase in trade payables by Rs.1,451.79 lakhs, increase in current liabilities by Rs.137.87 lakhs and increase in provisions by Rs.173.59 lakhs.

Financial Year 2023-24

Our net cash generated from operating activities was Rs.17.49 lakhs for the financial year ended March 31, 2024. Our operating profit before changes in working capital was Rs.297.19 lakhs which was primarily adjusted against increase in inventories by Rs.97.74 lakhs, increase in trade receivables by Rs.148.67 lakhs, increase in short-term loans & advances by 4.35 lakhs, increase in current liabilities by Rs.4.25 lakhs and short-term provision by Rs.31.25 lakhs along with decrease in trade payables by Rs.7.83 lakhs and decrease in other current assets by Rs.4.34 lakhs.

Financial Year 2022-23

Our net cash generated from operating activities was ^81.91 lakhs for the financial year March 31, 2023. Our operating profit before changes in working capital was ^ 145.17 lakhs, which was primarily adjusted against increase in inventories by Rs.92.68 lakhs, increase in trade receivables by ^11.66 lakhs, increase in short term loans & advances by Rs.0.73 lakhs, increase in other current assets by Rs.7.50 lakhs, increase in short term provisions by Rs.6.21 lakhs, increase in trade payables by Rs.8.11 lakhs and increase in current liabilities by Rs.59.10 lakhs.

Investing Activities Nine months period ended December 31, 2025

Our net cash used in investing activities was Rs.(46.72) lakhs for the financial year ended on March 31, 2025. It was on account of interest income amounting to Rs.7.53 lakhs which was offset against capital expenditure incurred on fixed assets amounting to Rs.54.16 lakhs, and purchase of investments aggregating to Rs.0.10 lakhs.

Financial Year 2024-25

Our net cash used in investing activities was Rs.(984.22) lakhs for the financial year ended on March 31, 2025. It was on account of interest income amounting to Rs.2.96 lakhs which was offset against purchase of fixed assets amounting to Rs.987.18 lakhs.

Financial Year 2023-24

Our net cash generated from investing activities was Rs.2.62 lakhs for the financial year ended on March 31, 2024. It was on account of purchase of fixed assets amounting to Rs.0.90 lakhs and and receipt of interest income amounting to Rs.3.52 lakhs.

Financial Year 2022-23

Our net cash used in investing activities was Rs.21.65 lakhs for the financial year ended on March 31, 2023. It was on account of interest income amounting to Rs.3.74 lakhs but was offset against capital expenditure incurred on fixed assets amounting to Rs.25.38 lakhs.

Financing Activities

Nine months period ended December 31, 2025

Net cash generated from financing activities for the nine months ended December 31, 2025 was Rs.4,819.19 lakhs. This was primarily attributable to proceeds from issue of shares amounting to Rs.5,638.56 lakhs, which was partially offset by repayment of short-term borrowings of Rs.729.69 lakhs, repayment of long-term borrowings of Rs.30.63 lakhs and payment of interest and other finance charges amounting to Rs.59.05 lakhs.

Financial Year 2024-25

Net cash generated from financing activities for the financial year ended March 31, 2025 was Rs.1,923.82 lakhs. This was primarily attributable to proceeds from short-term borrowings amounting to Rs.1,991.66 lakhs, which was partially offset by repayment of long-term borrowings of Rs.33.30 lakhs and payment of finance costs amounting to Rs.34.54 lakhs.

Financial Year 2023-24

Net cash used in financing activities for the financial year ended March 31,2024 was Rs.326.42 lakhs which was on account of repayment of short-term borrowings of Rs.149.67 lakhs, repayment of long term borrowings amounting to Rs.112.17 lakhs and payment of interest and other finance expenses amounting to Rs.64.58 lakhs.

Financial Year 2022-23

Net cash generated from financing activities for the financial year ended March 31, 2023 was Rs.250.95 lakhs. This was primarily attributable to proceeds from short-term borrowings amounting to Rs.417.74 lakhs, which was partially offset by repayment of long-term borrowings of Rs.92.55 lakhs and payment of interest and other finance expenses amounting to Rs.74.24 lakhs.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market risk is the risk of loss related to adverse changes in market prices, including interest rates. In the normal course of business, we are exposed to certain market risks including interest risks.

INTEREST RATE RISK

Interest rate risk results from changes in prevailing market interest rates, which can cause a change in the fair value of fixed-rate instruments and changes in the interest payments of the variable-rate instruments. Our operations are funded to a certain extent by borrowings. Our current loan facilities carry interest at variable rates as well as fixed rates. We mitigate risk by structuring our borrowings to achieve a reasonable, competitive cost of funding. There can be no assurance that we will be able to do so on commercially reasonable terms, that our counterparties will perform their obligations, or that these agreements, if entered into, will protect us adequately against interest rate risks.

LIQUIDITY RISK

Adequate and timely cash availability for our operations is the liquidity risk associated with our operations. Our Companys objective is to all time maintain optimum levels of liquidity to meet its cash and collateral requirements. We employee prudent liquidity risk management practices which inter-alia means maintaining sufficient cash and the availability of funding through an adequate amount of committed credit facilities.

CREDIT RISK

We are exposed to the risk that our counterparties may not comply with their obligations under a financial instrument or customer contract, leading to a financial loss. We are exposed to credit risk from our operating activities, primarily from trade receivables.

We consider our customers to be creditworthy counterparties, which limits the credit risk, however, there can be no assurance that our counterparties may not default on their obligations, which may adversely affect our business and financial condition.

MATERIAL FRAUDS

There is no material frauds committed against our Company in the last three financials year.

UNUSUAL OR INFREQUENT EVENTS OR TRANSACTIONS

Except as described elsewhere in this Draft Red Herring Prospectus, there have been no events or transactions to our knowledge which may be described as "unusual" or "infrequent".

SIGNIFICANT ECONOMIC/REGULATORY CHANGES

Government policies governing the sector in which we operate as well as the overall growth of the Indian economy has a significant bearing on our operations. Major changes in these factors can significantly impact income from continuing operations.

There are no significant economic changes that materially affected our Companys operations or are likely to affect income except as mentioned in the section titled "Risk Factors" on page 23 of this Draft Red Herring Prospectus.

KNOWN TRENDS OR UNCERTAINTIES THAT HAVE HAD OR ARE EXPECTED TO HAVE A MATERIAL ADVERSE IMPACT ON SALES, REVENUE OR INCOME FROM CONTINUING OPERATIONS

Other than as described in the section titled "Risk Factors" and chapter titled "Managements Discussion and Analysis of Financial Conditions and Results of Operations" on pages 23 and 270, respectively, of this Draft

Red Herring Prospectus, to our knowledge there are no known trends or uncertainties that have or are expected to have a material adverse impact on our income from continuing operations.

FUTURE CHANGES IN THE RELATIONSHIP BETWEEN COSTS AND REVENUES

Other than as described in the section titled "Risk Factors" and chapter titled "Managements Discussion and Analysis of Financial Conditions and Results of Operations" on pages 23 and 270, respectively, and elsewhere in this Draft Red Herring Prospectus, there are no known factors to our knowledge which would have a material adverse impact on the relationship between costs and income of our Company. Our Companys future costs and revenues will be determined by demand/supply situation, government policies and other economic factors.

NEW BUSINESS SEGMENTS

Except as disclosed in this Draft Red Herring Prospectus, we have not announced and do not expect to announce in the near future any new services or business segment.

SEASONALITY OF BUSINESS

Except as mentioned in this chapter, our business is not subject to seasonal variations.

SIGNIFICANT DEPENDENCE ON A SINGLE OR FEW SUPPLIERS OR CUSTOMERS

For nine months ended December 31, 2025 and for the financial year ended March 31,2025, March 31, 2024 and March 31,2023, our top five customers accounted for 81.48%, 87.86%, 99.49% , and 96.28%, respectively, and our largest customer accounted for 28.37%, 33.22%, 47.24%, and 42.11% of our revenue from operations, respectively. For nine months ended December 31, 2025 and for the financial year ended March 31,2025, March 31, 2024 and March 31,2023, our top five suppliers accounted for 60.77%, 49.34%, 9.59% , and 42.71%, respectively, and our largest supplier accounted for 21.56%, 13.72%, 2.91%, and 20.28% of our revenue from operations, respectively.

RELATED PARTY TRANSACTIONS

We enter into various transactions with related parties in the ordinary course of business. For further information relating to our related party transactions see "Restated Financial Statements " on page 240.

MATERIAL DEVELOPMENTS SUBSEQUENT TO DECEMBER 31, 2025

Except as disclosed below, no circumstances have arisen since December 31, 2025, the date of the last financial statements as disclosed in this Draft Red Herring Prospectus which materially or adversely affect or are likely to affect our operations or profitability, or the value of our assets or our ability to pay our material liabilities within the next twelve months:

1. Pursuant to the shareholders resolution dated January 29, 2026, the Company has approved the reclassification of the unissued 8,00,000 (Eight Lakhs) Preference Shares of Rs.100/- (Rupees One Hundred only) each, amounting to Rs.8,00,00,000/- (Rupees Eight Crores only), into 80,00,000 (Eighty Lakhs) Equity Shares of Rs.10 (Rupees Ten only) each aggregating to ^8,00,00,000/- (Rupees Eight Crores only.

2. Pursuant to the shareholders resolution dated January 29, 2026, the Company has approved subdivision of the equity shares of the Company from 1 equity share of face value of Rs.10 each to 2 equity shares of face value Rs.5 each.

3. Our Company has allotted 2,70,48,200 Equity Shares pursuant to bonus issue in the ratio of 100:1 (i.e.,100 fully paid-up equity shares for 1 Equity Share held by shareholders) on February 19, 2026,

4. Shah Kinjal Nitinkumar was appointed as Company Secretary and Compliance Officer with effect from March 12, 2026