Shah Construction Company Ltd Management Discussions

The Management of Shah Construction Company Limited presents the analysis of performance of your Company for the year ended 2025-2026 and its outlook for the future. This outlook is based on assessment of the current business environment and the expectations, estimates and projections of the Directors and Management of the Company. It may vary due to future economic and political development, both in the Indian and international economies and due to other factors beyond control.

ECONOMIC ENVIRONMENT WORLD

The global economy continued to demonstrate resilience during FY 2025-26 despite persistent geopolitical tensions, trade policy uncertainties and elevated financial market volatility. Global growth is estimated at around 3.0% in 2025 and is projected to improve modestly to approximately 3.1% in 2026, supported by easing inflationary pressures, gradual recovery in global trade and improving financial conditions. While advanced economies are expected to witness moderate growth driven by resilient labour markets and stable consumer spending, emerging market and developing economies are projected to remain the primary drivers of global economic expansion, albeit with varying growth trajectories across regions.

Global inflation continued its downward trajectory during the year as the effects of earlier monetary policy tightening and easing supply-side constraints moderated price pressures. Inflation is expected to move closer to the target levels of major central banks, enabling a gradual shift towards accommodative monetary policies in several economies. Nevertheless, downside risks remain, including geopolitical conflicts, trade fragmentation, fiscal pressures, climate- related events and volatility in commodity prices, which continue to pose challenges to the global economic outlook.

Despite these uncertainties, the global economy has exhibited remarkable resilience, supported by strong labour markets, resilient corporate balance sheets and improving consumer confidence. Over the medium term, however, global growth is expected to remain below historical averages due to structural challenges such as demographic shifts, slower productivity growth, elevated public debt levels and continued geopolitical uncertainties. Strengthening investment, fostering innovation, enhancing productivity and implementing structural reforms will remain critical to sustaining long-term economic growth.

(I) Industry Structure and Developments :

There is fierce competition in the business of Construction Business which is normal for any business.

(II) Threats :

The Company perceives normal business threats of competition from new entrants.

(III) Segment-wise or Product-wise Performance :

The performance of the company in Construction Business is stable.

(IV) Outlook :

The outlook of the Company is positive.

(V) Risks and Concerns:

The Company perceives normal business risks and concerns.

(VI) Internal Control systems and their adequacy:

The Company has adequate internal control systems.

(VII) Discussion on financial performance:

The Company has earned Gross total income of Rs. 771.73 Lakhs for the year under report as against Rs. 613.87 Lakhs in the previous year.

(VIII) Material developments in human resources / Industrial Relations front, and number of people employed:

There are no material developments in human resources front.

No. of employees: 18

(IX) Cautionary Statement:

Certain statements made in this Report relating to the Companys outlook, estimates, predictions etc. may constitute “forward looking statements” within the meaning of applicable laws and regulations. Actual results may differ from such estimates, whether express or implied. Several factors that could make a difference to Companys operations include climatic conditions and economic conditions affecting demand and supply, changes in Government regulation tax regimes, natural calamities, etc. over which the Company does not have any direct control.

Mehul Jadavji Shah	Dinesh Keshardeo Poddar
Director	Director
DIN:00933528	DIN: 00158597