Telge Projects Ltd Management Discussions

Industry Overview

The global Architecture, Engineering, and Construction (AEC) services industry, encompassing planning, design, engineering, and digital delivery solutions, is experiencing rapid expansion as urbanisation, infrastructure development, and project complexity accelerate worldwide. According to market research, the global AEC services market was valued at approximately USD 130.07 billion in 2025 and is projected to grow to over USD 426.6 billion by 2033, representing a compound annual growth rate (CAGR) of around 16.5% over the forecast period. This growth trajectory is supported by accelerated infrastructure modernisation, urban expansion in emerging economies, and an increasing focus on sustainable built environments.

A significant driver of this expansion is the increasing adoption of digital services and technology led engineering solutions, which accounted for nearly 47% of total AEC service revenues in 2025. Clients in commercial, residential, transportation, and public infrastructure sectors are demanding integrated digital design, lifecycle modelling, and realtime collaborative project tools that enhance planning accuracy and reduce execution risk. These digital solutions play a critical role in addressing longstanding challenges around project delays, cost overruns, and coordination inefficiencies traditionally associated with large infrastructure programmes.

Within this broader AEC landscape, the Building Information Modeling (BIM) market has emerged as a core force reshaping professional engineering and construction workflows worldwide. Independent analysis estimates the global BIM market at approximately USD 8.5-9.8 billion in 2024, with expectations to expand roughly USD 23.7-29.9 billion by 2033-2034, driven by a CAGR of ~11.8-13.2% over the forecast period. Growth is strongly supported by the increasing adoption of cloud based platforms, AI augmented modelling, and lifecycle cost optimisation tools that provide stakeholders with deeper project insights, improved coordination, and predictive planning capabilities.

This structural transition reflects a broader shift in the industry from traditional 2D drafting to data rich, integrated 3D and 4D workflows, which enable improved clash detection, sequencing, and longterm asset management. As digital technologies such as virtual reality (VR), augmented reality (AR) and digital twins become more prevalent, the construction ecosystem is embracing advanced simulation, realtime collaboration, and predictive analytics to enhance quality, safety, and project outcomes.

Geographically, Asia Pacific and North America remain key markets, with Asia Pacific leading overall AEC activity due to large scale infrastructure development and urban growth, while North America continues to benefit from high BIM penetration and regulatory support for digital delivery standards. Government mandates requiring BIM adoption in public infrastructure projects, present in advanced economies including the UK, Singapore, and parts of the Middle East, are accelerating uptake and driving overall industry digital maturity.

In India specifically, the architectural, engineering, and construction services market is projected to grow at a robust CAGR of approximately 16.6-17.5% through 2030, with digital services representing the largest segment. Expansion in commercial, residential, and public infrastructure projects, combined with smart city initiatives and increasing integration of digital engineering tools, positions India as a high growth regional market within the global AEC ecosystem.

Collectively, these dynamics reflect an industry that is rapidly embracing digitisation, sustainability, and integrated lifecycle planning. The shift towards BIM, cloud enabled platforms and AI driven design optimisation is redefining value delivery in construction and engineering, enhancing productivity, reducing risk, and enabling more resilient, data informed decisionmaking across project lifecycles.

Business Overview

Telge Projects Limited is a global engineering solutions company engaged in providing Structural Steel Design & Detailing,

Building Information Modelling (BIM), Precast Detailing, Architectural Design, Material Take-Offs (MTO), Project Coordination and allied engineering services to the Architecture, Engineering and Construction (AEC) industry. With a growing international footprint, the Company serves clients across the United States, Europe, Australia, the United Kingdom, Ireland and Southeast Asia through its technology-driven engineering platform and delivery capabilities. Founded with the objective of modernising structural and BIM engineering workflows, the Company has developed strong expertise across steel detailing, precast detailing, BIM coordination, drafting, General Arrangement (GA) drawings and connected construction services. These services are designed to support fabricators, contractors, architects, engineers and infrastructure developers executing projects across industrial, commercial and infrastructure segments globally. The Company combines engineering precision with digital workflows to deliver efficient and reliable project execution solutions for its customers.

A strong focus on quality, execution accuracy and timely delivery has enabled the Company to establish long-term relationships with customers and generate a significant portion of its business from repeat clients. Telge Projects continues to strengthen its project management systems, engineering standards and quality control processes to ensure consistent delivery across projects of varying complexity and scale. Its ability to provide faster turnaround timelines while maintaining engineering quality supports its positioning in the international engineering services market.

Backed by a skilled engineering workforce and experienced leadership team, the Company continues to invest in manpower development, process enhancement and research & development initiatives. Its team comprises professionals with expertise across leading engineering software platforms such as Tekla, SDS2 and Revit. Through continuous investments in technology integration and operational efficiency, the Company aims to improve productivity, optimise resource utilisation and strengthen execution capabilities across geographies.

Operational strength is supported through delivery centres in Pune, Latur and Nashik, along with an international presence in the United States through offices and subsidiaries across multiple states. This integrated global delivery model enables round-the- clock project execution, operational flexibility and closer engagement with international customers.

Strategic expansion remains an important part of the Companys long-term growth approach. Through acquisitions and capability enhancement initiatives, Telge Projects is expanding its presence into architectural and planning services while also evaluating opportunities in adjacent engineering solutions. These initiatives support the Companys vision of becoming an integrated end-to- end engineering and BIM solutions provider for the global AEC industry.

Going forward, Telge Projects remains focused on expanding its global customer base, strengthening engineering capabilities and enhancing service offerings across the AEC value chain. With increasing adoption of BIM and digital engineering solutions globally, the Company continues to position itself as an integrated end-to-end engineering and BIM solutions provider for international markets.

Architectural Services

The Architectural Services division continues to remain aligned with Telge Projects long-term strategy of delivering integrated design and project solutions across residential, commercial and infrastructure segments. During FY 2025-26, the global architectural services industry continued to witness steady growth, supported by rising investments in urban infrastructure, industrial development, transportation projects and sustainable construction solutions. According to industry estimates, the global architectural services market was valued at over USD 370 billion in 2025 and is projected to reach approximately USD 505 billion by 2031, growing at a CAGR of around 5.3% during the forecast period.

India continues to remain one of the important growth markets for architectural and infrastructure-related services, supported by rapid urbanization, increasing government infrastructure spending and rising investments across commercial and residential real estate. Government initiatives focused on smart cities, metro rail networks, industrial corridors, airports and logistics infrastructure are creating long-term opportunities for organized architectural and engineering service providers. The increasing scale of urban development projects and growing preference for sustainable and planned infrastructure are expected to support demand across residential, industrial and public infrastructure segments over the coming years.

The industry is also witnessing a gradual shift toward technology- enabled project execution and sustainable design solutions. Building Information Modelling (BIM), digital visualization and integrated project management platforms are increasingly being adopted to improve project planning, collaboration and execution efficiency. Industry estimates indicate that BIM Level 1 workflows accounted for over 54% of the architectural services market in 2025, while integrated BIM and digital collaboration solutions are expected to witness strong adoption over the coming years. In addition, increasing demand for green buildings, energy-efficient structures and modular construction techniques is reshaping project requirements globally.

The residential segment continues to remain a significant contributor to industry demand, accounting for more than 34% of the global architectural services market in 2025, supported by urban housing demand and mixed-use development projects. At the same time, industrial and manufacturing projects are witnessing increasing investments driven by supply chain diversification, industrial expansion and infrastructure modernization initiatives across emerging economies.

Against this backdrop, Telge Projects continues to focus on strengthening its execution capabilities and delivering customercentric architectural solutions aligned with evolving market requirements. The Company remains focused on efficient planning, design coordination and timely project delivery while maintaining quality and execution standards across projects. Its diversified approach across residential, commercial and infrastructure segments supports a balanced project portfolio and enhances longterm growth visibility.

Operational efficiency and process optimization remain important focus areas for the Company. Increasing integration of digital workflows, technology-driven coordination systems and structured project management practices is expected to improve execution timelines, resource utilization and delivery efficiency. These initiatives are aimed at strengthening scalability while maintaining service quality and customer satisfaction.

Looking ahead, the outlook for the architectural services industry remains positive, supported by continued investments in infrastructure, urban modernization and sustainable construction. Asia-Pacific is expected to remain one of the fastest-growing markets globally, driven by urban expansion and industrial development activities. With growing adoption of technology-led design solutions, increasing focus on green infrastructure and continued infrastructure investments in India, Telge Projects remains well-positioned to participate in emerging opportunities and strengthen its presence across key development sectors.

Building Information Modelling (BIM) Services

Building Information Modeling (BIM) services continue to be a cornerstone in transforming the construction and infrastructure industries, aligning with Telge Projects long-term strategy of delivering comprehensive, technology-driven project solutions. As we close FY2025-26, BIM stands at the forefront of construction and engineering services, shaping the industrys digital future. According to global reports, the BIM market is projected to grow from USD 9.3 billion in 2024 to USD 22.7 billion by 2031, expanding at a strong CAGR of 13.7%. This growth is fueled by advancements in AI, digital twins, cloud-based technologies, and integrated lifecycle management solutions.

In India, the BIM services market is experiencing similar momentum. The countrys growing urbanization, increased investments in infrastructure, and government initiatives such as "Smart Cities Mission" and BIM mandates for public sector projects are accelerating the adoption of BIM technologies. Indias BIM market is projected to expand from USD 350.5 million in 2025 to USD 1.06 billion by 2034, with a CAGR of 11.04%. As commercial, residential, and industrial sectors increasingly recognize the benefits of BIM in improving project efficiency, cost control, and collaboration, Telge Projects is well-positioned to take advantage of this growth trend by offering comprehensive BIM services tailored to meet the diverse needs of these sectors.

BIMs core capabilities include 3D design validation, cost estimation, clash detection, and improved collaboration, all of which are crucial in enhancing the efficiency of complex projects. The rise of cloud- based BIM solutions is further enabling real-time collaboration, enhancing the flexibility and scalability of project teams. Cloud deployment, with an expected market share of 55% by 2025, is especially significant as it reduces upfront infrastructure costs and provides seamless access to shared models, facilitating faster decision-making and smoother coordination across multiple project stakeholders.

The expansion of BIM in India is also linked to the increasing demand for sustainable construction. BIMs ability to simulate energy efficiency, evaluate material performance, and optimize designs for environmental impact aligns with the growing emphasis on ecofriendly construction. This trend is supported by the Indian governments push for sustainability, as seen in new standards for

green buildings and infrastructure development projects.

As Telge Projects continues to integrate BIM into its services, it remains focused on leveraging these innovations to provide clients with end-to-end project solutions. From pre-construction design to post-construction operations, BIM enables better resource management, project timelines, and cost optimization. Furthermore, the Companys focus on AI-driven BIM tools, such as predictive data analytics and generative design, ensures that it remains competitive by offering cutting-edge services that meet the evolving needs of clients.

Looking ahead, the future of BIM services in India is promising. As the adoption of smart infrastructure projects increases and digital transformation gains momentum, BIM will play a central role in the successful execution of complex urban, industrial, and infrastructure projects. Telge Projects, with its expertise in delivering BIM-integrated solutions, is poised to capitalize on these opportunities, further highlighting its position as a leader in the evolving engineering and construction landscape. With a continued focus on improving operational efficiency and driving digital innovation, Telge Projects is well-equipped to thrive in the growing BIM-driven market.

Structural Engineering & Design

The Structural Engineering & Design division continues to remain aligned with Telge Projects long-term strategy of delivering integrated engineering, detailing and project execution solutions across infrastructure, industrial and commercial segments. During FY2025-26, the global engineering and construction industry continued to witness steady activity despite ongoing macroeconomic and supply chain challenges. Industry estimates indicate that construction real value-added in the United States crossed USD 900 billion during 2025, while non-residential construction activity remained supported by infrastructure, institutional and manufacturing investments.

The Indian structural engineering and construction industry also continues to benefit from rising infrastructure investments, industrial expansion and urban development initiatives. Increasing investments in transportation infrastructure, metro rail projects, industrial corridors, commercial developments, warehousing and energy infrastructure are creating sustained demand for structural design, detailing and engineering services. Government-led initiatives focused on smart cities, logistics infrastructure, renewable energy and manufacturing expansion are further supporting long-term opportunities across the sector.

During the year, the industry also witnessed increasing adoption of digital engineering and technology-driven execution practices. Engineering and construction companies are increasingly integrating Building Information Modelling (BIM), digital twins, AI- assisted project planning and advanced design software to improve project coordination, design efficiency and execution timelines. Industry reports indicate that digital transformation is becoming a key competitive differentiator across engineering and construction services, particularly in large infrastructure and industrial projects.

The sector is also witnessing a growing shift toward high- investment areas such as data centers, energy infrastructure and industrial manufacturing facilities. According to industry analysis, commercial construction activity linked to data centers and energy infrastructure is expected to witness one of the fastest growth rates over the coming years, supported by rising AI-driven infrastructure demand, grid modernization and increasing investments in power and digital infrastructure. This trend is expected to create additional opportunities for structural engineering, detailing and integrated project management services.

Against this backdrop, Telge Projects continues to strengthen its engineering and execution capabilities while focusing on delivering customer-centric structural design solutions aligned with evolving industry requirements. The Company remains focused on efficient project planning, design optimization, timely execution and maintaining quality standards across assignments. Its diversified approach across infrastructure, industrial and commercial projects supports a balanced project portfolio and enhances longterm growth visibility.

Operational efficiency and process optimization continue to remain important focus areas for the Company. Increasing integration of digital workflows, advanced design tools and technology-enabled coordination systems is expected to improve project execution timelines, resource utilization and delivery efficiency. These initiatives are aimed at strengthening scalability while maintaining high standards of engineering quality and customer satisfaction.

Looking ahead, the outlook for the structural engineering and construction industry remains positive, supported by continued infrastructure investments, industrial expansion and increasing adoption of technology-enabled engineering solutions. Industry reports also indicate that the engineering and construction sector is expected to face increasing demand for digitally integrated project execution and sustainable infrastructure solutions over the coming years. With rising investments across infrastructure and industrial segments, growing adoption of digital engineering tools and continued focus on execution excellence, Telge Projects remains well-positioned to participate in emerging opportunities and strengthen its presence across key development sectors.

During the year, the industry also witnessed increasing adoption of digital engineering and technology-driven execution practices. Engineering and construction companies are increasingly integrating Building Information Modelling (BIM), digital twins, AI-assisted project planning and advanced design software to improve project coordination, design efficiency and execution timelines. Industry reports indicate that digital transformation is becoming a key competitive differentiator across engineering and construction services, particularly in large infrastructure and industrial projects.

The sector is also witnessing a growing shift toward high-investment areas such as data centers, energy infrastructure and industrial manufacturing facilities. According to industry analysis, commercial construction activity linked to data centers and energy infrastructure is expected to witness one of the fastest growth rates over the coming years, supported by rising AI-driven infrastructure demand, grid modernization and increasing investments in power and digital infrastructure. This trend is expected to create additional opportunities for structural engineering, detailing and integrated project management services.

Against this backdrop, Telge Projects continues to strengthen its engineering and execution capabilities while focusing on delivering customer-centric structural design solutions aligned with evolving industry requirements. The Company remains focused on efficient project planning, design optimization, timely execution and maintaining quality standards across assignments. Its diversified approach across infrastructure, industrial and commercial projects supports a balanced project portfolio and enhances long-term growth visibility.

Operational efficiency and process optimization continue to remain important focus areas for the Company. Increasing integration of digital workflows, advanced design tools and technology-enabled coordination systems is expected to improve project execution timelines, resource utilization and delivery efficiency. These initiatives are aimed at strengthening scalability while maintaining high standards of engineering quality and customer satisfaction.

Looking ahead, the outlook for the structural engineering and construction industry remains positive, supported by continued infrastructure investments, industrial expansion and increasing adoption of technology-enabled engineering solutions. Industry reports also indicate that the engineering and construction sector is expected to face increasing demand for digitally integrated project execution and sustainable infrastructure solutions over the coming years. With rising investments across infrastructure and industrial segments, growing adoption of digital engineering tools and continued focus on execution excellence, Telge Projects remains well-positioned to participate in emerging opportunities and strengthen its presence across key development sectors.

Opportunities and Threats

The global Building Information Modelling (BIM) market is expected to grow from USD 9.03 billion in 2025 to USD 15.42 billion by 2030, at a CAGR of 11.3%, driven by rising urbanisation, infrastructure development, sustainability requirements and adoption of digital twin technologies. This provides a strong opportunity for Telge Projects, given its focus on BIM, structural engineering design, MTO, 2D drafting and architectural design services across domestic and

international markets. The Company is well placed to benefit from increasing BIM adoption across AEC firms, contractors, builders and government agencies, along with growing demand in North America, Europe and Asia-Pacific markets.

However, the Company operates in a competitive and technology- led industry. Key threats include high dependence on skilled BIM professionals, rising employee costs, fast-changing software platforms, cybersecurity risks, high implementation costs for clients, and dependence on export markets such as the USA, UK and Australia. Any slowdown in construction activity, delayed digital adoption, foreign exchange volatility, or client project delays may impact order flow and profitability.

Risks and Concerns

As a global engineering and BIM solutions provider with operations across multiple geographies, Telge Projects Limited remains exposed to various enterprise-level risks that may impact business operations, financial performance, and long-term growth. The Company continuously evaluates key risks and strengthens its internal processes, technology capabilities, and operational systems to support sustainable growth and business continuity.

The Board of Directors and Management provides strategic oversight by closely monitoring risk exposures and ensuring proactive response mechanisms are implemented. With structured reviews and timely interventions, the Company is committed to minimizing risk exposure while maintaining agility to adapt to dynamic market conditions.

• Client Concentration and Order Continuity:

- Nature of Risk: The Company derives a significant portion of its business from repeat customers and international markets, particularly the United States. Any slowdown in client spending, delay in project execution, or loss of key customers may impact revenues and profitability.

- Mitigation Measures: The Company continues to diversify its customer base by on-boarding new clients across geographies and increasing engagement with larger customers having better project visibility and higher ticket sizes. Expansion into new regions such as Canada, New Zealand, and Southeast Asia further supports diversification.

• Talent Availability and Employee Retention:

- Nature of Risk: The engineering and BIM industry is highly dependent on skilled manpower. Inability to attract, train, and retain qualified professionals may affect execution capabilities and service quality.

- Mitigation Measures: The Company has made continuous investments in manpower, training, and R&D initiatives to strengthen execution capability. Multi-location delivery centres and structured training programs support operational scalability and workforce readiness.

• Technology and Cybersecurity Risk:

- Nature of Risk: Increasing dependence on digital engineering platforms and software tools exposes the business to cybersecurity threats, system disruptions, and data security risks.

- Mitigation Measures: The Company continues to strengthen IT infrastructure, project management systems, and quality control processes while investing in technology-driven efficiency improvements and internal systems development.

• Foreign Exchange Risk:

- The Company is exposed to foreign currency risk on account of revenue from overseas contracts and expenses/payments denominated in foreign currencies.

- The exposure is managed through natural hedging and ongoing monitoring by management.

- The Company does not foresee any material adverse impact on account of foreign exchange fluctuations.

Internal Control Systems

The Company has established adequate internal control systems aligned with the nature, size, and scale of its operations. These controls are designed to ensure orderly and efficient conduct of business, safeguarding of assets, accuracy of financial records, compliance with applicable laws and regulations, and prevention of unauthorized transactions.

Clearly defined processes, delegation of authority, and periodic reviews, support operational and financial discipline across functions. The Company also follows structured planning and monitoring mechanisms to align business objectives with operational execution. Internal audits are conducted at regular intervals to review the effectiveness of controls and identify areas for improvement. The findings and recommendations are reviewed by the management, thereby strengthening governance and ensuring transparency in business operations.

To further strengthen governance and support informed decisionmaking, the Company engages external consultants with diverse professional expertise across various administrative and business functions, enabling access to the latest industry insights and best practices. Additionally, to enhance the effectiveness of its risk management and control framework, the company has appointed internal auditors who report independently to both the Audit Committee and the Board of Directors, thereby ensuring transparency, objectivity, and accountability and robust oversight across all governance processes.

Human Resources

Human Resources remain central to Telge Projects growth and longterm business objectives. We believe our employees are key contributors to the Companys success and therefore focus on attracting, developing, and retaining skilled talent across functions. Guided by experienced leadership, our workforce comprises a balanced mix of experienced professionals and young talent, enabling operational stability and supporting future growth initiatives. As on March 31, 2026, the Company had more than 220 permanent employees across departments including steel detailing, precast detailing, business development, management, finance, administration, and information technology.

The Company continues to emphasize employee engagement, capability enhancement, performance management, and career development initiatives, fostering a culture of meritocracy, collaboration, and continuous learning. These efforts strengthen the Companys human capital foundation and support the achievement of its strategic objectives in an increasingly competitive business environment.

Disclosure of Accounting Treatment:

The financial statements of the Company have been prepared in accordance with the Accounting Standards (AS) notified under Section 133 of the Companies Act, 2013 read with the Companies (Accounting Standards) Rules, 2021 and other relevant provisions of the Act.

Cautionary Statement

In compliance with relevant securities laws and regulations, certain statements in the Management Discussion and Analysis should be considered "forward-looking statements" regarding Telge Projects objectives, plans, estimates, and expectations. It is important to acknowledge that actual results may differ materially from those expressed or implied. Factors that could significantly impact the Companys operations include economic conditions affecting market demand, supply, and pricing dynamics in its operational markets, changes in governmental regulations, tax laws, and other statutes, as well as unforeseen events such as epidemics, pandemics, or natural disasters beyond our direct or indirect control.