Suntech Infra Solutions Ltd Management Discussions

OVERVIEW

Suntech Infra Solutions Ltd. ("Suntcch") came into existence in 2009 as a construction equipment renting company, which dealt in renting of cranes, dozers, transit mixers, etc. Subsequently, we started turnkey piling projects, and today we are one of the leading companies in the field of Foundation jobs, and Equipment Renting across India. Our vision is to give client a similar experience that is "WOW". Machinery is our wealth, and Team members arc our asset. Providing safe work environment to the team members and empowering them to achieve required results. Quality is the building block of our organization

This Management Discussion & Analysis Report presents the key performance highlights of the year 2025-26 pertaining to the Companys business. This review earlier sections of this Annual Report, the Companys financial statements, the schedules and notes thereto and the other information included elsewhere in this Annual Report. The Companys financial statements have been prepared in accordance with Indian Accounting Standards (IND AS), complying with the requirements of the Companys Act 2013 and the guidelines issued by Securities and Exchange Board of India (SEBI).

Our ultimate objective is to provide the best service in Industry.

INDUSTRY STRUCTURE & DEVELOPMENTS

The Indian infrastructure and construction sector continued to witness strong growth in FY 2025-26, driven by increased government spending on urban infrastructure, transportation networks, and industrial projects. Initiatives under the National Infrastructure Pipeline and Gati Shakti have further accelerated project execution across the country. The Companys focus areas ? including civil construction, drilling, piling, and specialized equipment hiring ? remain integral to this growth.

OPPORTUNITIES. THREATS, RISKS AND CONCERNS

The Company had the opportunity in Expansion in infrastructure spending by the government, rising demand for specialized high-capacity construction equipment, opportunities in metro rail, highways, and industrial corridor projects and Potential for technology adoption to improve efficiency. The Companys Threats are Volatility in raw material prices impacting project costs, Delays in project execution due to regulatory approvals and environmental concerns, Competitive pressure from domestic and international players, Higher finance costs in a rising interest rate environment.

SEGMENT PERFORMANCE

The Company is engaged primarily in the business to construct, execute, carry out, develop civil constructional work and to carry on the business of drilling & blasting pipe jacking. Accordingly, there are two separate reportable segments i.e. Hiring business and job Work business.

Segment Revenue for FY 2025-26:

• Hiring Business: 41632.61 Lakhs {Previous Year: 41,477.02 Lakhs)

• Job Work Business: 415,994.76 Lakhs (Previous Year: 413,788.08 Lakhs)

Segment Results (Profit Before Tax & Finance Cost):

• Hiring Business: 4544.99 Lakhs {Previous Year: 4557.00 Lakhs)

• job Work Business: 4 1867.55 Lakhs (Previous Year: 41,908.68 Lakhs)

INTERNAL CONTROL SYSTEM & THEIR ADEQUACY

The Company has a good system of internal controls in all sphere of its activity. The internal control system is supplemented by effective Internal Audit. The audit committee regularly reviews the findings of the internal auditors and effective steps to implement the suggestion /observation of the auditors are taken and monitored regularly. In the opinion of the Board, an effective internal control system commensurate to the size of the Company exists.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

Revenue from Operations increased to 417,627.37 Lakhs inFY 2025-26 from 415,265.10 Lakhs inFY 2024-25, mainly due to substantial increase in job work contracts executed during the year. Profit after Tax stood at 41,375.52 Lakhs compared to 41,211.36 Lakhs in the previous year. The Debt-Equity Ratio increased due to additional borrowings for equipment procurement.

ENVIRONMENT, OCCUPATIONAL HEALTH & SAFETY

Your Company is committed to conducting its operations with utmost concern towards the environment and ensuring a safe and healthy workplace for all employees. The collective endeavour of the Companys employees at all levels is directed towards sustaining and continuously improving standards of environment management, and occupational health & safety in an endeavour to meet and exceed international benchmarks.

MATERIAL DEVELOPMENT IN HUMAN RESOURCES /INDUSTRIAL RELATIONS FRONT, INCLUDING THE NUMBER OF PEOPLE EMPLOYED.

The Company has employees and the cordial relations were maintained with all of them throughout the year. The Board of the Company wishes to place on record its appreciation to all the employees for their sustained efforts in improving the capacity utilization and operational efficiency.

The Company has initiated many steps in career and personality development of the employees belonging to different departments. The employees attended seminars and other training programs to enhance their skills and knowledge.

To motivate and to get the best results from the employees, the Company has the performance based incentive scheme for its entire management & office cadre.

INTERNAL FINANCIAL CONTROL

Initiated companywide adoption of Internal Financial Control (IFC) Framework as a proactive measure for documentation and testing of the Controls. The Company has robust Internal Control over Financial Reporting (ICFR) framework which is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with generally accepted accounting principles. During the year an elaborate exercise was undertaken for standardization and consolidation of the controls for better control and improved testing purposes. All the controls have been documented, validated, and tested. All these measures provide reasonable assurance that the Companys internal financial controls are adequate and are operating effectively as intended.

CAUTIONARY STATEMENT

Statement in the Management Discussion and Analysis describing the Companys objectives, expectations, predictions and assumptions may be forward looking¹ within the meaning of applicable Securities Laws and Regulations. Actual result may differ materially from those expressed herein. Important factors that could influence the Companys operations include global and domestic economic conditions affecting demand, supply, price conditions, change in Governments regulations, tax regimes, other statutes and other factors such as litigation and industrial relations.

For Suntech Infra Solutions Limited