Srinibas Pradhan Constructions Ltd Management Discussions

[Pursuant to Regulation 34(2)(e) read with Regulation 34(3) and Schedule V(B) of SEBI (LODR) Regulations, 2015]

For the Financial Year Ended March 31, 2026

OVERVIEW

Srinibas Pradhan Constructions Limited (“SPCON” or the "Company") was incorporated in 2020 and is engaged in infrastructure development, with a primary focus on Roads and Highways, including Rural, Major District, and Urban roads. We utilize a range of materials such as Aggregate, Sand, Tar, and Cement to ensure durable and reliable construction. In addition to roads, we focus on construction of Bridges and Steel Structures, both for bridges and sheds. Our Civil Construction Services encompass a wide spectrum, from Foundations and Superstructures to Multi-Storied Structures, Factories, and Industrial Facilities. We engage in competitive bidding processes by participating in tenders/ bids/ quotations and complete the process for getting contracts/work orders for diverse projects in the State of Odisha, such as Roads, Bridges, Irrigation & Canals, Civil, and Industrial construction.

The Company achieved a significant milestone during the year by completing its Initial Public Offering (IPO) and getting its equity shares listed on the SME Platform of National Stock Exchange of India Limited (NSE Emerge) on March 13, 2026. The listing has enhanced the Companys access to capital markets and provides a platform to support its future growth plans.

This Management Discussion and Analysis (“MD&A”) presents the key performance highlights and developments for the financial year ended March 31, 2026. It should be read together with the other sections of this Annual Report, including the financial statements and the notes thereto. Unless otherwise stated, the financial performance and key financial ratios discussed in this MD&A are based on the consolidated financial statements of the Company for the year ended March 31, 2026, which include the financial performance of its wholly owned subsidiary, Srinibas Pradhan Infra Private Limited. The standalone financial performance is separately presented where relevant. The consolidated financial statements have been prepared in accordance with the applicable accounting framework under the Companies Act, 2013 and the rules made thereunder.

INDUSTRY STRUCTURE AND DEVELOPMENTS

The global economy faced macro headwinds in FY 2025 - 26, yet India retained its position as a primary driver of global economic growth. As reflected in public data and disclosures on the NSE platform, the SME and emerging business sector in India continues to experience strong structural momentum. Growth is supported by government initiatives promoting domestic manufacturing, digital transformation, and capital market accessibility for high-growth enterprises. Positioned on the NSE Emerge platform, the Company leverages this favourable ecosystem to scale operations, expand client reach, and meet regulatory transparency standards.

OPPORTUNITIES AND THREATS

The Company sees opportunities from continued infrastructure spending, particularly in roads, highways, bridges and industrial infrastructure, as well as from its enhanced access to equity capital following the NSE

Emerge listing. The Company also expects opportunities from new project pipelines and from strengthening its execution capabilities and working capital position.

The principal risks and challenges include volatility in the prices of construction materials and other inputs, delays in project execution due to regulatory approvals or other external factors, changes in applicable laws and regulations, competitive pressure, availability and cost of finance, and general economic conditions. The Company seeks to manage these risks through project monitoring, prudent financial management, appropriate bidding and cost-control measures and compliance with applicable laws and contractual requirements.

SEGMENT - WISE AND PRODUCT-WISE PERFORMANCE

The Company is primarily engaged in the business of construction and related services. For FY 2025-26, consolidated revenue from operations comprised construction revenue of Rs. 8,657.33 Lakhs, annual maintenance and other operations of Rs. 227.33 Lakhs and rental income from machinery of Rs. 136.64 Lakhs, aggregating to Rs. 9,021.30 Lakhs. In FY 2024-25, consolidated revenue from operations was Rs. 8,968.47 Lakhs. Construction activities remained the principal source of revenue during the year. The Company operates primarily in construction and related services and the activities are inter-related; accordingly, the discussion above provides the relevant product/service-wise performance.

For the financial year ended March 31, 2026, consolidated revenue from operations stood at Rs. 9,021.30 Lakhs as compared to Rs. 8,968.47 Lakhs in FY 2024-25, representing growth of 0.59%. Consolidated Profit After Tax (PAT) increased to Rs. 821.02 Lakhs from Rs. 658.84 Lakhs, representing growth of 24.62%. Basic and diluted EPS stood at Rs. 13.33 for FY 2025-26 as compared to Rs. 11.34 in FY 2024-25. The improvement in profitability was supported by the higher scale of operations and contribution from the wholly owned subsidiary. The consolidated financial performance includes the results of Srinibas Pradhan Infra Private Limited.

OUTLOOK

The Company remains focused on strengthening its execution capabilities and pursuing opportunities in roads, highways, bridges and other infrastructure projects. The Companys capital structure strengthened materially during the year following the equity issuances undertaken pursuant to the Initial Public Offer. The increase in shareholders funds contributed to the reduction in the debt-equity ratio and provides an enhanced capital base for the Companys working capital and business requirements. As at March 31, 2026, IPO proceeds aggregating to Rs. 1,024.33 Lakhs had been utilised, comprising Rs. 500.00 Lakhs towards working capital requirements, Rs. 100.00 Lakhs towards repayment of a portion of loans, Rs. 221.12 Lakhs towards general corporate purposes and Rs. 203.21 Lakhs towards public issue expenses. An amount of Rs. 655.00 Lakhs earmarked for working capital requirements remained unutilised as at March 31, 2026 and shall be utilised in accordance with the objects of the issue and applicable regulatory requirements. The Company will continue to focus on working capital management, operational efficiency, equipment capability and disciplined bidding to support sustainable growth.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company maintains internal financial controls commensurate with the size and nature of its operations. Internal audit evaluations are conducted regularly to verify operational accuracy, statutory compliance and asset protection. Findings are periodically reported to the Audit Committee and Board for review and appropriate steps are taken to implement suggestions and observations of the auditors.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

Consolidated revenue from operations increased to Rs. 9,021.30 Lakhs in FY 2025-26 from Rs. 8,968.47 Lakhs in FY 2024-25, registering growth of approximately 0.59%. The consolidated results include the performance of the Companys wholly owned subsidiary, Srinibas Pradhan Infra Private Limited.

Consolidated Profit After Tax stood at Rs. 821.02 Lakhs, compared to Rs. 658.84 Lakhs in the previous year, registering growth of approximately 24.62%. The consolidated net profit margin improved to 9.10% from 7.35%, reflecting the improvement in profitability despite the relatively stable revenue base.

The consolidated Debt-Equity Ratio improved to 0.37 times in FY 2025-26 from 1.09 times in FY 2024-25, primarily on account of the substantial increase in shareholders equity following the equity issuances, together with the relative reduction in debt. Consolidated shareholders funds increased to Rs. 4,110.24 Lakhs as at March 31, 2026 from Rs. 1,590.26 Lakhs as at March 31, 2025. The strengthened capital base provides greater financial flexibility to support working capital and execution of future contracts.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS (REGULATION 34(3) SCHEDULE V)

Pursuant to Schedule V(B) of SEBI (LODR) Regulations, 2015, key financial ratios and explanations for significant changes (i.e. change of 25% or more compared to FY 2024-25) are detailed below. Unless otherwise stated, the ratios below are based on the consolidated financial statements.

*Ratios with significant change (25% or more) primarily reflect changes in working capital, inventory, trade receivables and the strengthening of the shareholders equity base following the IPO.

Return on Net Worth (RONW) & Explanation: Return on Net Worth stood at 29.00% in FY 2025-26 compared to 56.00% in FY 2024-25, representing a decrease of approximately 48.38%. The decrease is primarily attributable to the increase in average shareholders equity following the equity issuances during the year. RONW has been calculated as profit for the year divided by average shareholders equity.

ENVIRONMENT, OCCUPATIONAL HEALTH AND SAFETY

The Company is committed to protecting the environment and providing a safe and healthy workplace for all its employees. Employees at all levels work together to maintain and improve environment management and occupational health and safety standards, in line with applicable benchmarks.

HUMAN RESOURCES AND INDUSTRIAL RELATIONS

The Company maintained cordial relations with all its employees throughout the year. As at March 31, 2026, the Company had 75 employees. The Board places on record its sincere appreciation for the employees sustained efforts in improving capacity utilisation and operational efficiency.

The Company has undertaken initiatives towards the career and personality development of employees across various departments, including seminars and training programmes to enhance their skills and knowledge.

To motivate employees and derive optimum performance, the Company operates a performance-based incentive scheme covering its management and office cadre.

CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis describing the Companys expectations or projections may be forward-looking within the meaning of applicable securities laws. Actual results could differ materially from those expressed herein. Important factors that could influence the Companys operations include global and domestic conditions affecting demand, supply, price conditions, changes in government regulations, tax regimes, regulatory shifts, and other unforeseen environmental factors.