Rudrabhishek Enterprises Ltd Management Discussions

Global Economic Scenario

The global trade scenario is turbulent due to tariff related concerns. The situation is still fluid and it will take some time in stabilizing. In the current financial year, it will naturally have impact on growth rates globally. The World Bank has estimated the world output growth in 2025 at 2.8% and that for 2026 to be 3.0% (April 2025, World Economic Outlook). The estimates have been revised downward after the international trade war ignited early this year.

Multiple regions across the globe are facing geopolitical conflicts which directly impact international trade by disputing the supply chain. The global development scenario is definitely going to be challenging in the coming financial year. Trade uncertainties may guide the nations to focus more on internal economic activities. The countries are likely to pursue stability oriented macroeconomic policies. Even in the regional economy, major structural shift is underway. When the uncertainty settles down, we may witness a new equation emerging from the current international trade and investment scenario. The nature of globalization that we have been quite used to since a long time may take an altogether new shape.

Indian Economic Scenario

In post global tariff tension, most of the national and multilateral agencies have marginally sliced down the GDP growth estimates for India. Even after this, India remains the fastest growing country among all major economies of the world. As per the RBI, in FY 2026, Indias GDP is expected to grow at a robust 6.5%; as per the World Bank it will be 6.3%; as per IMF it will be 6.2%; while ADB has pegged Indias growth slightly higher at 6.7%. In the present global trade and economic scenario, a six percent plus growth rate makes India one of the most lucrative investment destinations in terms of longterm value creation. The fact that India has now become fourth largest economy in the world surpassing Japan, indicates the size of opportunity that it offers for everyone. India is uniquely positioned in a favorable position of having an enormous market size as well as the leading growth rate among all major economies.

It has also been emphasized by our central bank that Indian Economy is supported by stability in terms of monetary, fiscal and political certainties. Our domestic demand is strong and our dependency of exports is not too heavy to create any significant disruption. Indias domestic consumption demand lies heavily on rural areas which is likely to remain strong as the monsoon is expected to be above normal. The inflation is stabilized within the range, enabling the RBI to ease the interest rates in successive MCPs (Monetary & Credit Policies) this year which will create higher liquidity in the system that in turn will foster and sustain growth. The finance ministrys economic review released in April 2025 has also emphasized that the Indias strong domestic demand, rising GST collection and increase eway bill generation strongly suggests that country economic growth has got firm base.

Indian Infrastructure Scenario

In the Union Budget 202526, the honorable Finance Minister has emphasized infrastructure as a catalyst for the vision of Viksit Bharat by 2047. This has been mentioned as one of the four engines of growth. Year on year the budgetary allocation to infrastructure has been significant, and on the increasing trend. For the financial year it has been pegged at Rs. 11.21 lakh crore. Moreover, the second asset monetization plan of Rs. 10 lakh crore will have its direct impact on infrastructure and urban development. This will unlock

the potential of dormant assets and unleash many opportunities for various private players, including the consulting firms like REPL.

By introducing various majors and provisions, government is encouraging private participation through PPP. Jal Jeevan Mission (JJM) has been extended till 2028 focusing on quality infrastructure and rural piped water supply scheme. Urban Challenge Fund of Rs. 1 lakh crore has been announced in previous budget to implement the proposal for Cities as Growth Hubs, Creative Redevelopment of Cities and Water & Sanitation. Allocation of Rs. 10,000 Crores has been proposed for 202526. In all these sectors, REPL consultancy services have very strong positioning and the emerging opportunities will immensely help us in escalating our business.

Similarly, multiple schemes have been proposed in Maritime, Aviation & Tourism sectors. The regional connectivity through UDAN is planned to be extended to 120 new destinations in next ten years. We are trying to expand our presence in many other areas within infrastructure, such as power, renewable energy, tourism and transportation.

In the Real Estate sector, SMREIT has started taking shape. The previous year SEBI announced the policy and ever since the interest of industry has been rising rapidly. This new asset class will democratize the investment in real estate domain. Many developers, operators and investors are looking at it as a great opportunity to get their property listed on exchange and leverage the capital.

The REIT & SMREIT market is expected to grow in the line of Mutual Fund in India. The retail participation and listing on exchange is expected to take it to an altogether different level of investment and making it a significant asset class. As per AMFI, the overall MF Industry has grown to Rs. 74.41 trillion in June 2025, which is more than sixfold increase in last ten years. The number of investor folios has grown to 25 crores which is more than two and half fold increase in span of five years. On average approx. 25 lakh folios are added every month in last five years since June 2020. This is an indication of what kind of potential REIT & SMREIT holds in terms of growing in overall market size and participation if grows on the lines similar to Mutual Fund. As the market of REIT & SMREIT matures in coming years, we will see a magnitude of retail and institutional investors coming into its fold. Also, the asset owners will use this opportunity in leveraging their existing revenue generating properties by listing through this platform.

Future Outlook & Companys Plans

REPL has now firmly placed its credentials in the infrastructure and urban development landscape. Our integrated services and quality deliverance is acknowledged in the industry both among the private and public sector clientele. Our strategy is to keep consolidating the position in our core consultancy business and keep exploring the new areas of business for expansion. Depending on the available opportunities, market conditions and our internal situations, we recalibrate our strategy at every stage.

There has been great focus by the present government on egovernance and digitalization. Even all the state governments are being encouraged to make their systems smart and transparent by application of technology. REPL has extensively worked in the IT application in Smart Cities by developing Integrated Command & Control Centers. We have also delivered large projects in GIS mapping & digitization of records. Now the governments push on egovernance is opening up new opportunity window for us that

we plan to capitalize through RIPL.

We are also getting into the electricity sector through application of GIS which is our proven credential area. All the state governments are moving towards consumer indexing, asset survey & mapping, validation of existing and new data by using GIS and web applications. We have already procured a large project in Jharkhand and we look forward to similar projects from other states contributing to our business in this financial year.

REPL, as investment manager to ImpactR is actively looking to make inroads into the SM REIT market, not only for commercial assets such as Office Complex, but also to the other segments like Hostels, Hotels and Hospitals that have much robust revenue model and bring in advantage of scale. The segment is also much untapped by the industry at large that will give us higher margin of profits. Our dedicated team is at advance stage of negotiation on multiple revenue generating real estate assets. In the coming year, the SMREIT venture will contribute significantly to our revenue. Our initiative to get into PMC of defence sector through RAD is at

commencement stage. The ramping up will take some time but this will give us a new revenue stream and thereby spurring up our topline growth. It will also bring stability in mitigating risk of operation as a major part of the engagement is framework with cost plus.

Geoengineering services have a huge scope across a wide range of industries and it has lower competition because of the high entry barrier. RGEPL has made initial inroads in the market during previous year. We have been measured in this business line to contain the working capital and finetune the delivery process. With stabilized business model, now the plan is to expand across new territories and client segments. In the coming year, the plan is to acquire geoengineering assignments across diversifies sectors, with focus on Solar Energy, Metro Rail and Real Estate.

During the coming years, we foresee the REPL steadily growing the core business through a combination of organic and inorganic growth. Overall, despite all the turbulence in economic climate, our business plan remains firm and dynamic.

From a very modest start in 1992 to the listing at NSE main board in 2020, it has been a classic dream journey for us.

The distinctive feature of our company growth has been its alignment with the core development concerns of the country.

At every stage, we have made sure that our business operations and objectives create a synergy with the fundamental priorities of the populace at large. Past three decades have witnessed major macroeconomic changes and frequent policy realignments in India as well as at the global platform. The fact that we have been able to pull out the sustained growth over such a long time span, is in itself a testimony of our robust business model and internal strength. We are hardwired to sail through any upheaval in economic and business environment. As the inception of our country was in the period of economic liberalization and globalization in the country, we truly reflect the spirit of modern India that has been shaping over these 30 Years.

REPL has faced the heat of European Economic Recession and Dot Com Bubble in 2000; then again in 2008 company sailed through global meltdown driven by US Subprime Crisis. Every time we were able to keep our business intact and emerged at the highher coordinates of growth curve. In 201617 massive changes were precipitated by the GOIs decision of demonetization and introduction of GST regime; we again handled the transition with great efficiency and consequently our growth rates were even higher than previous years. The way we have handled the coronavirus pandemic and managed to restrict the impact, reinforces the robustness of our business model and resilience of our organizational character.

Today, we stand as team of 200+ professionals with multidisciplinary experience and exposure. We have inhouse experts comprising of Fund Managers, Architects,

Urban Planners, GIS Experts,

Infrastructure Specialist,

Interior Designers, Engineers and Project Managers. This enables REPL to deliver endtoend consultancy

solutions in diverse sectors across Infrastructure and Urban Development. Within the urban development segment REPL has designed and executed HiTech Cities, Integrated Townships, Group Housing projects, Commercial & Office Complexes, Hospitality Projects (Hotels & Hospitals), Recreational Facilities (Sports Stadium & Club Houses).

Within infrastructure sector,

REPL has been working with central government and multiple state government agencies. The variety of projects include preparation of regional & zonal plans, GIS based master plans, water supply systems, sewerage system & waste water management, riverfront development, slumfree city plan of action, city street vending plan, housing for all plan of action (HFAPoA), Roads & Highways, Tourism Infra etc. Another flagship government program PMAY (Pradhan Mantri Awas Yojna) has our extensive involvement covering 211 towns across 6 states.

REPL has been associated with Smart City mission of GOI since the very initial stage, when the plan designed for the Bhopal Smart city was selected in competition and included in the list of initial 20 cities. We have been providing consultancy in conceptualization, planning and implementation of multiple smart cities Varanasi (UP), Indore (Madhya Pradesh), Kanpur (UP), Dehradun (Uttarakhand), Moradabad (UP), Itanagar (Arunachal Pradesh), Jabalpur (Madhya Pradesh), Vellore (Tamil Nadu), and Madurai (Tamil Nadu). On these projects, we have been working on ABD (Area Based Development)

as well as Pan City solutions. There is extensive applications of ICT on various project components. We strive to design and build sustainable cities that are right at the top of livability index. REPL has also parted with GOIs Skill India Mission for technical training of youth in U.P. A fully quipped Training Center cum Hostel has been operational in Kaushambi for this purpose.

REPL is an ISO 9001:2015 and ISO/IEC 27001:2013 certified organization empaneled with more than 30 government department & agencies including UP RERA. The Group has the privilege of serving a number of esteemed clients from Government, Public and Private sectors. Company is headquartered at New Delhi. Pan India assignments are handled through various local project offices.

When we look ahead with higher growth aspirations for the company and all our stakeholders and associates, we also find it opportune moment to be reminded of the Shloka from Katha Upanishad that teaches about the peaceful coexistence and collective prosperity.

[Om! May we all be protected; May we all be nourished; May we work together with great energy; May our intellect be sharpened; Let there be no animosity amongst us; Peace (in me), Peace (in nature), Peace (in divine force)].

CALCULATIONS AND EXPLANATIONS OF MAJOR RATIOS

No. Ratios	Numerator	Denominator	Mar25	Mar24	Change in ratio as compared to preceding year	Reason for change in ratio by more than 25% as compared to preceding year
1 Current Ratio (in times)	Total Current Assets	Total Current Liabilities	3.45:1	3.12:1	10.53%
2 DebtEquity Ratio (in times)	Debts Consists of borrowings and lease liabilities	Total Equity	0.01:1	0.08:1	32.47%	Due to increase in borrowing
3 Debt Service Coverage Ratio (in times)	Earning for Debt Service = Net Profit after taxes + Noncash operating expenses + Interest + other noncash adjustments	Debt Service = Interest and lease payments + Principal repayments	5.81:1	5.24:1	10.86%
4 Return on Equity Ratio (%)	Profit for the year less Preference dividend (if any)	Average Total Equity	9.83%	11.60%	15.24%
5 Trade Receivables Turnover Ratio (in times)	Revenue from Operations	Average Trade receivables	1:1	1.11:1	9.90%
6 Trade Payables Turnover Ratio (in times)	Direct Operating Cost+Other expenses	Average Trade Payables	2.23:1	1.74:1	28.45%	Due to increase in Direct Operating Cost & decrease in Trade Payables
7 Net Capital Turnover Ratio (in times)	Revenue from operations	Average Working Capital (i.e. Total current assets less Total current liabilities)	0.91:1	1.06:1	13.87%
8 Net Profit Ratio (in %)	Profit for the year	Revenue from Operations	13.71%	14.26%	3.88%
9 Return on Capital Employed (in %)	Profit before tax and finance cost	Capital employed = Net worth + Lease liabilities + Deferred tax liabilities	14.46%	16.03%	9.77%
10 Return on Investment (in %)	Income generated from invested funds	Average invested funds in treasury investments	NA	NA