Sanmit Infra Ltd Management Discussions

1. INDUSTRY STRUCTURE AND DEVELOPMENT :

Sanmit Infra Limited ("the Company") operates across diversified business segments, including Bio-medical and other Waste Management, Infrastructure and Real Estate Development, Trading in Petroleum Products, Bitumen Emulsion and other Road Construction related materials, and Microsurfacing, road repair and allied services.

The Companys diversified business model enables it to participate in multiple sectors and pursue opportunities across infrastructure, road construction, waste management, petroleum products and real estate. The Company continues to evaluate business opportunities based on market conditions, commercial viability, availability of resources and the Companys ability to execute projects efficiently.

The infrastructure and road construction sectors continue to provide opportunities arising from increasing emphasis on development and maintenance of roads, urban infrastructure and allied facilities. The waste management sector is also witnessing increasing attention towards scientific, compliant and environmentally responsible handling and disposal of biomedical and other waste.

The real estate and infrastructure sectors remain dependent on economic growth, availability of financing, interest rates, government policies, regulatory developments and demand conditions. Similarly, the petroleum trading and road construction material businesses are influenced by commodity prices, demand-supply conditions, transportation costs and competitive intensity.

The Company believes that its presence across multiple business segments provides opportunities for business diversification and supports its long-term growth strategy.

2. ECONOMIC CONDITIONS AND BUSINESS CYCLES :

The performance of the Company is influenced by prevailing macro-economic conditions, business cycles, government expenditure, interest rates, inflation, commodity prices and changes in regulatory and taxation policies.

Infrastructure and road-related activities are dependent, among other factors, upon government and private sector expenditure on infrastructure development and maintenance. Changes in economic activity, availability of projects, tendering activity and investment in infrastructure may have a direct impact on the Companys business.

The Companys petroleum products and road construction material trading activities are subject to fluctuations in market prices, demand and supply conditions. Changes in crude oil prices and other input costs may affect the margins of the Company.

The waste management business is influenced by regulatory requirements, generation of biomedical and other waste, demand for compliant waste treatment and disposal services and the Companys ability to maintain the required operational and compliance standards.

The real estate and infrastructure development business is affected by prevailing market conditions, availability of finance, interest rates, property demand, regulatory approvals and other external factors.

The Company continues to monitor these factors and evaluates business opportunities with a view to maintaining operational efficiency and managing business risks.

3. BUSINESS PERFORMANCE AND OPERATIONAL OVERVIEW:

The Company is engaged in the following principal business activities:

1. Bio-medical and Other Waste Management

2. Infrastructure and Real Estate Development

3. Trading in Petroleum Products

4. Bitumen Emulsion and Other Road Construction Related Materials

5. Microsurfacing, Repair of Roads and Related Services

The Company continues to focus on strengthening its presence in its existing business segments while exploring commercially viable opportunities for growth. The Company also undertakes activities relating to bitumen emulsion and other road construction materials, which complement its infrastructure and road-related business activities.

The Companys microsurfacing and road repair activities provide opportunities in the maintenance and rehabilitation of existing road infrastructure. The Company seeks to undertake projects based on commercial viability, availability of orders and its operational capabilities.

The Company is also engaged in bio-medical and other waste management activities. This segment provides an opportunity to participate in the growing requirement for systematic and environmentally responsible waste management solutions.The Company continues to assess opportunities in infrastructure and real estate development while considering prevailing market conditions and the availability of suitable projects.

4. ABILITY TO CONTROL COST AND ATTAIN HIGH PRODUCTIVITY:

Cost management and operational efficiency remain important factors affecting the Companys profitability. The Companys operating costs are influenced by various factors, including petroleum prices, bitumen and other raw material prices, transportation costs, manpower costs, project execution costs and other operating expenses.

In the road construction and microsurfacing business, timely execution of projects, effective deployment of skilled and unskilled manpower, efficient utilization of machinery and control over material consumption are important for maintaining cost competitiveness.

The Company continues to focus on efficient resource utilization, project planning, procurement management and operational controls to improve productivity and manage costs.

5. PRICING PRESSURE DUE TO COMPETITION / COMPETITIVE BIDDING:

The businesses in which the Company operates are competitive and pricing is influenced by market forces, demand and supply, competition, input costs and customer requirements. Infrastructure, microsurfacing and road repair projects may involve competitive bidding and tender-based procurement, particularly in relation to institutional and government-related projects. Competitive bidding may result in pricing pressure and may affect margins. Similarly, petroleum products and road construction materials are subject to prevailing market prices and competition.

The Company seeks to maintain competitiveness through efficient procurement, cost control, timely execution and maintaining appropriate relationships with customers and business partners.

6. HUMAN RESOURCE MANAGEMENT :

Human capital is an important contributor to the Companys growth and operational performance. The Company recognizes the importance of attracting, developing and retaining competent personnel across its business segments. The Company strives to maintain a safe, professional and conducive working environment and promotes teamwork, transparency, ethics and accountability. The Companys activities require an appropriate mix of managerial, technical, skilled and operational manpower. The Companys ability to attract and retain competent personnel, particularly technical and project execution personnel, will continue to be an important factor in achieving its business objectives.

7. CAPITAL EXPANSION AND CAPITAL EXPENDITURE:

Capital expenditure and expansion plans are evaluated based on business requirements, market opportunities, expected returns and availability of financial resources. The Companys future capital requirements may arise from expansion of its infrastructure and road-related activities, waste management operations, acquisition or deployment of equipment and other business requirements. The timing and scale of any capital expenditure will depend upon prevailing market conditions, availability of suitable opportunities, project requirements and the Companys financial position.

8. RELATIONSHIP WITH CLIENTS, BANKS, FINANCIAL INSTITUTIONS AND OTHER STAKEHOLDERS :

The Companys business and revenue generation are dependent, inter alia, upon its ability to secure new orders, execute existing contracts efficiently and maintain long-term relationships with customers and business associates. The Company endeavors to maintain professional and transparent relationships with its customers, suppliers, banks, financial institutions and other stakeholders.The ability to secure repeat business and new opportunities, particularly in infrastructure, road-related and waste management activities, will remain an important factor in determining future growth.

9. KEY STRATEGIC HIGHLIGHTS :

The Companys key strategic focus areas include:

Diversification across infrastructure, road construction, waste management, petroleum products and real estate-related activities;

Expansion of opportunities in microsurfacing and road repair services;

Development of the road construction materials and bitumen emulsion business;

Strengthening the Companys presence in waste management activities;

Identification of commercially viable infrastructure and real estate opportunities;

Improvement in operational efficiency and cost management;

Strengthening customer and business relationships;

Adoption of appropriate technology and improved project execution practices; and

Focus on sustainable and long-term business growth.

The Company remains focused on creating a balanced and diversified business portfolio and intends to pursue growth opportunities based on market conditions and commercial viability.

10. RISK AND CONCERNS :

Risk is an inherent part of business operations. The Company operates across multiple sectors and is therefore exposed to various operational, financial, market, regulatory and business risks.

Key risks and concerns include:

Market Risk: Changes in demand, commodity prices and prevailing market conditions may affect business performance.

Competition Risk: Increased competition and competitive bidding may put pressure on margins.

Raw Material Price Risk: Fluctuations in prices of petroleum products, bitumen and other materials may affect project costs and profitability.

Project Execution Risk: Delays in execution, availability of manpower, equipment or materials and other operational challenges may affect project performance.

Regulatory Risk: Changes in laws, regulations, environmental requirements, taxation and government policies may impact the Companys operations.

Real Estate Risk: Changes in property demand, interest rates, availability of financing and regulatory approvals may affect the real estate business.

Environmental and Compliance Risk: Waste management activities require adherence to applicable environmental and operational requirements.

Financial Risk: Liquidity, credit and working capital requirements may affect the Companys ability to execute and expand its operations.

The Company seeks to manage these risks through appropriate internal controls, regular monitoring, management review and timely corrective measures.

11. INTERNAL CONTROL SYSTEMS AND ADEQUACY:

The Company has established internal control systems commensurate with the nature, size and complexity of its operations.

The internal control framework is designed to provide reasonable assurance regarding:

1. Timely preparation of reliable financial information;

2. Accuracy and completeness of accounting records;

3. Compliance with applicable laws and regulations;

4. Safeguarding of assets;

5. Prevention and detection of frauds and errors; and

6. Effectiveness and efficiency of operations.

The Companys internal controls cover financial, operational and compliance functions. These controls are periodically reviewed by the management and are supplemented by internal audit and other review mechanisms, wherever applicable.

The Audit Committee reviews significant control matters and receives relevant updates from management and the auditors. The Company continues to strengthen its internal control framework in line with the requirements of the Companies Act, 2013 and applicable regulatory requirements.

12. FINANCIAL PERFORMANCE:

The summary of Operating Performance is given below:

(Rs. In Lakhs)

	Standalone
PARTICULARS	2025-26	2024-25
Revenue from operations	10,075.21	14,296.21
Other Income	366.64	385.35
Total Income	10,441.85	14,681.55
Total expenses	10,170.22	14,455.40
Profit/(Loss) before Tax	271.63	226.16
Total Tax Expenses	73.70	70.21
Profit / (Loss) for the period	196.59	154.80
Earnings per Equity Share (in Rs)
Basic	0.13	0.10
Diluted	0.13	0.10

12. OUTLOOK, OPPORTUNITIES AND THREATS :

The Company believes that its diversified business portfolio provides opportunities for growth across multiple sectors. The continued development and maintenance of road infrastructure presents opportunities in microsurfacing, road repair and allied services, as well as in the supply of bitumen emulsion and other road construction materials. The growing focus on environmentally responsible waste management provides opportunities in the bio-medical and other waste management segment, subject to applicable regulatory and operational requirements. The petroleum products trading business may provide opportunities based on market demand, customer requirements and prevailing trading conditions.

The infrastructure and real estate sectors may also provide opportunities arising from economic development, urbanization and infrastructure investment. However, these sectors remain subject to market cycles, interest rates, regulatory requirements, availability of financing and competitive conditions.The Company will continue to evaluate opportunities prudently and focus on sustainable growth, operational efficiency, risk mitigation and improvement in shareholder value.

13. INTERNAL FINANCIAL CONTROLS :

The Company has internal financial control procedures commensurate with the nature and scale of its operations. These controls are intended to ensure the reliability of financial reporting, safeguarding of assets, prevention and detection of fraud and errors, and compliance with applicable laws and regulations. The Company periodically reviews its internal control systems and takes appropriate measures to strengthen such systems wherever required.

The management, internal audit function, statutory auditors and the Audit Committee, as applicable, review the effectiveness of the internal financial control framework.

14. CAUTIONARY STATEMENT :

Certain statements contained in this Management Discussion and Analysis Report may constitute "forward-looking statements" within the meaning of applicable laws and regulations. Such statements are based on the Companys current expectations, assumptions, estimates and projections regarding future events and business performance.

Actual results may differ materially from those expressed or implied in such forward-looking statements due to various factors, including changes in economic conditions, market demand, competition, commodity prices, interest rates, government policies, taxation, regulatory requirements, project execution, availability of resources, natural calamities and other factors beyond the Companys reasonable control.

The Company undertakes no obligation to publicly update or revise any forward-looking statements, except as may be required under applicable laws and regulations.

	By Order of Board of Directors
	For Sanmit Infra Limited
	Sd/-
	Sanjay Makhija
Place : Mumbai	Managing Director
Date : 14.08.2026	DIN: 00586770