RBM Infracon Ltd Management Discussions

1. GLOBAL ECONOMY

Global economic growth remained resilient during 2025-26, with global output estimated to have grown by 2.9%, despite elevated trade tensions, policy uncertainty and geopolitical challenges. Growth is projected to improve moderately to 3.1% in 2026, supported by continued investment, resilient domestic demand and gradual adaptation to changing global trade and economic conditions. However, elevated public debt, tighter fiscal conditions, geopolitical tensions and uncertainty surrounding trade policies continue to pose challenges to the global economic outlook.

Global headline inflation declined during 2025-26 to around 4.1% and is projected to rise modestly to approximately 4.4% in 2026, primarily reflecting higher commodity prices and renewed inflationary pressures arising from geopolitical developments. While inflation remains on a broadly declining path over the medium term, the pace of disinflation is expected to vary across economies.

The global economy demonstrated resilience during FY 2025-26, supported by steady consumption, investment and improving financial conditions in several major economies. Nevertheless, geopolitical conflicts, trade-policy uncertainty, commodity-price volatility, high government debt and the possibility of tighter global financial conditions remain key downside risks. At the same time, technological investment, particularly in artificial intelligence and related sectors, is emerging as an important source of productivity and economic activity, providing potential upside to the global growth outlook.

(Source: IMF - World Economic Outlook, April 2026: "Global Economy in the Shadow of War")

2. INDIAN ECONOMY

India continued to reinforce its position as the fastest-growing major economy in the world, with the Indian economy demonstrating strong resilience during FY 2025-26 despite global economic uncertainties and geopolitical challenges. Indias real GDP growth is estimated at 7.4% during FY 2025-26, supported by robust domestic demand, strong private consumption, sustained government capital expenditure and improving investment activity.

The Indian economy has maintained a strong growth trajectory in recent years, supported by structural economic reforms, favourable demographics, rising formalisation, digitalisation and the continued expansion of the services sector. The resilience of domestic demand, moderation in inflation and sustained public investment have provided a strong foundation for economic activity. The manufacturing sector has also shown renewed momentum, with manufacturing GVA recording strong growth during FY 2025-26.

Indias economic outlook remains positive, with growth expected to remain among the strongest globally. The key factors supporting the economic outlook include:

• Strong domestic consumption, supported by favourable inflation conditions, improving household purchasing power and resilient economic activity.

• Sustained public capital expenditure, particularly in infrastructure, transportation, energy and other critical sectors.

• Revival in private investment, supported by improving business confidence, capacity utilisation and favourable domestic demand conditions.

• Growth in manufacturing and services, with continued policy support aimed at strengthening Indias position in global supply chains.

• Increasing foreign and domestic investment flows, supported by Indias expanding market, improving business environment and structural reforms.

• Rapid digitalisation and technological adoption, which continue to enhance productivity, financial inclusion and the efficiency of economic activity.

At the same time, the economic outlook remains subject to risks arising from geopolitical tensions, global trade uncertainties, commodity-price volatility, fluctuations in crude oil prices and changes in global financial conditions. Nevertheless, Indias strong domestic fundamentals, resilient consumption and investment demand, and continued structural transformation are expected to support sustained economic growth in the medium term.

(Source: Economic Survey 2025-26, Government of India; World Bank - India Development Update, April 2026.)

3. BUSINESS OVERVIEW

RBM Infracon Limited, established in 1992, is an ISO 9001:2015 accredited specialist contractor providing comprehensive Construction, Maintenance and Turnaround services across a wide range of industrial sectors.

Key Sectors Served:

• Oil & Gas Refineries

• Petrochemicals & Fertilizers

• Gas Cracker Plants

• Power Plants (Coal, Gas & WHR-based)

• Cement, Chemicals, Sugar & Paper Plants

• Irrigation & Allied Industries

Core Services:

• EPC-based Fabrication & Erection of Structural Works

• Tankage Works

• Piping Fabrication & Erection (CS/SS/Alloy Steel, above & underground)

• Annual Rate Contract (ARC) Maintenance for Refineries & Petrochemicals

• Turnaround (Shutdown) Services for Power & Petrochemical Plants

• Blasting & Painting Works

• Insulation & Refractory Works

• Electrical & Instrumentation Services

• Wagon Tipplers and Raw Material Handling Systems

Over the past three decades, the Company has successfully executed projects for reputed clients including Reliance Industries Limited, Nayara Energy Limited, Tata Projects, L&T, Afcons Infrastructure Ltd., Chemie-Tech (Nigeria & Malta), GPPL Malta and YARA Fertilizers.

During FY 2025-26, the Company continued to focus on strengthening its execution capabilities, maintaining quality standards and delivering projects efficiently across its key sectors. The Companys skilled workforce, inhouse resources, technical expertise and modern equipment enable it to undertake complex industrial projects and maintenance assignments with a focus on safety, quality and timely execution.

The Company continues to prioritize safety and quality through project-specific safety plans, established operating procedures and effective supervision, with the objective of ensuring safe and reliable project execution.

4. OPPORTUNITIES AND THREATS Opportunities

• Strong Infrastructure Growth - Continued government focus on infrastructure development, industrial expansion and capital expenditure is expected to create sustained opportunities for engineering, fabrication, erection and maintenance contractors.

• Energy & Industrial Investments - Expansion and modernization of oil & gas, refining, petrochemical, fertilizer and power infrastructure is expected to generate demand for fabrication, piping, tankage, maintenance and turnaround services.

• Manufacturing & Capex Expansion - Increasing investments in manufacturing, process industries and industrial capacity expansion may provide opportunities for EPC and allied construction service providers.

• Government Policy Support - Continued policy initiatives promoting infrastructure development, energy security, domestic manufacturing and private investment are expected to support long-term demand for industrial construction and maintenance services.

• Maintenance & Turnaround Opportunities - The growing need for preventive maintenance, plant modernization and periodic shutdown and turnaround activities provides recurring business opportunities across refineries, petrochemical plants, power plants and other process industries.

Threats

• Economic & Geopolitical Uncertainty - Global economic slowdown, geopolitical tensions and changes in international trade conditions may affect investment decisions and the pace of new infrastructure and industrial projects.

• Raw Material Price Volatility - Fluctuations in the prices of steel, fuel, energy and other key inputs may increase project costs and put pressure on operating margins, particularly where contracts do not provide adequate price escalation mechanisms.

• Execution & Project Delays - Delays in obtaining approvals, availability of materials, site readiness, client decisions or other external factors may affect project schedules and working capital requirements.

• Manpower Availability - The availability and retention of skilled technical and supervisory personnel remain important for timely and efficient execution of projects, particularly for specialized fabrication, erection and turnaround activities.

• Competition & Pricing Pressure - The industrial construction and EPC sector remains competitive, with companies facing pricing pressure and competition from established contractors and regional players for large-value projects.

• Working Capital & Funding Requirements - Infrastructure and industrial projects typically require significant working capital. Delays in certification and receipt of payments, together with tighter credit conditions, may place pressure on liquidity and project execution.

5. RISKS AND CONCERNS

• Geopolitical & Economic Risks - Geopolitical tensions, global trade uncertainties, protectionist measures and volatility in commodity and energy prices may affect supply chains, project costs and overall investment activity.

• Competition Risk - The industrial EPC, fabrication, construction and maintenance sectors remain highly competitive, with increased competition for large infrastructure and industrial projects potentially resulting in pricing pressure and lower margins.

• Raw Material Price Volatility - Fluctuations in the prices of steel, fuel, energy and other key inputs may increase project costs and adversely affect profitability, particularly where contracts do not provide adequate price escalation mechanisms.

• Execution Risks - Delays in land availability, work-front handover, statutory approvals, client clearances, material availability or other project-related dependencies may affect project schedules, costs and cash flows.

• Working Capital Risks - Delays in project certification, billing and collection of receivables may increase working capital requirements and place pressure on liquidity and the timely execution of projects.

• Manpower Risks - Shortages of skilled, semi-skilled and technical personnel, particularly during major shutdown and turnaround assignments, may affect project execution and timelines.

• Energy Transition Risks - The transition towards cleaner energy sources and increasing emphasis on sustainability may alter investment patterns in conventional energy sectors. The Company may need to continuously adapt its capabilities and service offerings in line with evolving industry requirements.

• Cybersecurity Risks - Increasing dependence on digital systems and communication networks exposes businesses to cybersecurity threats such as ransomware, phishing, data breaches and system disruptions, which may affect business operations and information security.

• Climate & Environmental Risks - Extreme weather events, including heatwaves, heavy rainfall, flooding and other adverse climatic conditions, may affect worker productivity, transportation, logistics, material movement and project execution.

• Regulatory Risks - Changes in government policies, environmental regulations, labour laws, safety requirements and other statutory or regulatory requirements may increase compliance costs and affect project execution.

6. FINANCIAL AND OPERATIONAL HIGHLIGHTS (FY 2025-26)

7. OUTLOOK (FY 2025-26)

RBM Infracon Limited enters FY 2025-26 with confidence, supported by Indias robust infrastructure pipeline, government capex push, and increasing private investments.

The Company will continue to focus on:

• Strengthening its presence in high-growth infrastructure segments.

• Expanding service capabilities to support energy transition and sustainability goals.

• Enhancing operational efficiencies and safety standards.

• Prudent financial management to maintain a strong balance sheet.

With a solid order book, a trusted client base, and a strong governance framework, RBM Infracon is well- positioned to deliver sustainable growth in FY 2025-26 while navigating global and domestic challenges.