Tirupati Sarjan Ltd Management Discussions

WORLD ECONOMY

The global economy continues to navigate a complex and evolving environment, with economic activity being in uenced by geopolitical developments, energy market disruptions, trade-related uncertainties and changing nancial conditions. According to the International Monetary Funds July 2026 World Economic Outlook Update, global growth is projected at 3.0 per cent in 2026 and 3.4 per cent in 2027. The outlook re ects the resilience of global economic activity, supported in part by technology-led investment and advances in arti cial intelligence, while the impact of the ongoing war and related energy shocks remains a key source of uncertainty.

The global economic outlook remains subject to signi cant risks, including renewed geopolitical tensions, volatility in energy prices, nancial market repricing and potential disruptions to international trade. While global disin ation has stalled, the impact of these developments continues to vary across economies, with energy-importing and vulnerable economies facing greater challenges. At the same time, economies integrated into the global technology value chain may bene t from the continued momentum in technology-related investment.

At this critical juncture, strengthening international cooperation, maintaining macroeconomic stability and fostering a predictable trade and investment environment remain important for supporting sustainable global growth. Policymakers across economies are expected to focus on preserving price stability, rebuilding scal bu ers and enhancing economic adaptability. Continued structural reforms, investment in technology and infrastructure, and measures to strengthen labour force participation and productivity will remain important in promoting resilient and inclusive growth.

INDIAN ECONOMY

India continued to demonstrate strong economic resilience and sustained growth momentum during FY 2025-26, despite an evolving global economic environment marked by geopolitical uncertainties, trade-related disruptions and volatility. According to the provisional estimates released by the Ministry of Statistics and Programme Implementation (MoSPI), Indias real GDP is estimated to have grown by 7.7 per cent in FY 2025-26, compared with 7.1 per cent in FY 2024-25. The growth was supported by resilient domestic demand, consumption and investment, along with continued activity across key sectors of the economy.

The outlook for the Indian economy remains positive, supported by strong domestic fundamentals, continued infrastructure development, digitalisation and policy initiatives. While global economic uncertainties, geopolitical developments and external trade conditions may continue to pose challenges, India remains well positioned to sustain its growth momentum. The International Monetary Fund (IMF), in its July 2026 World Economic Outlook Update, projects Indias growth at 6.4 per cent for FY 2026-27, reinforcing the countrys position among the fastest-growing major economies globally.

INDUSTRY OVERVIEW

The Indian construction market is highly competitive, owing to the presence of major local and international players. However, the market holds opportunities for small and medium players due to increasing government investments in the sector. The Indian construction market presents opportunities for growth during the forecast period, which is expected to further drive market competition. Large players are competing with each other for a large share of the Indian construction market. This makes it hard to see any consolidation in the market. Source: https://www.mordorintelligence.com/industry-reports/india-construction-market.

INDUSTRY STRUCTURE AND DEVELOPMENTS

Tirupati Sarjan Limited is among the most reputed & renowned real estate Company. Serving and ful lling dreams of innumerable customers in the various cities of Gujarat, since 4th January, 1995. Core objective of the Company is to provide preeminent housing at a ordable prices catering to the middle class families of North Gujarat. Company has executed over 100+ projects during its tenure from its inception till date.

Tirupati Sarjan Ltd is an ISO 9001:2008 certi ed Company. The equity shares of the Company are listed on BSE. The Company has focused on residential and commercial projects in major cities of North Gujarat. Company has spread its wings to other parts of Gujarat by launching high end luxurious residential project such as Tirupati Akruti Greenz in Ahmedabad located behind Nirma University.

The Company formed an infra division in 2008-09 with mainly focusing on undertaking Government projects. With rich experience of numerous projects, Company has been awarded Central Government and State Government project, our valuable Government projects ongoing at Gujarat, Rajasthan, Goa, Maharashtra Diu and Tamil Nadu. Our expertise in mainly construction/ expansion of Educational Campuses, Hospital & Medical Campuses, Commercial Complexes, Guest/ Circuit House, Residential Bungalows & Apartments Institutional Buildings, Township & land Development and many more and we had successfully completed many Government projects.

OPPORTUNITIES:

With the current scenario economic volatility and imminent risks driven by socio-political factors makes it di cult to forecast the future with any degree of certainty. While we are hopeful that FY 2026-27 will herald better economic and business activity in terms of tendering, good liquidity and revival of labor and supply chains, it would be premature to predict the Companys business outcomes for FY 2026-27.

The infrastructure sector has normally been the governments biggest focus area for economic growth and shall undoubtedly continue to remain for years. The increased impetus for accelerating infrastructure development will further open up vast opportunities for construction companies and we are hopeful that your Company will surely bene t with good project orders and better nancial returns. The company is putting enormous e orts to mitigate the impact of the pandemic.

With the Companys core-competence in government projects, we are well-placed and look forward to strongly capitalize on the opportunities in these segments. The Company will consistently ensure to see the growth is achieved in conjunction with sustainable pro tability by driving operational excellence to ensure our projects are delivered on time within the allocated budgets.

THREATS/RISK:

1. Labor shortage, less- experienced or unskilled labor may impact on construction industries.

2. Uncertainty of seasons, Natural Disasters and threat of global warming on it.

3. Internal factors and government policies/ Regulatory Change , tough competition.

4. Price and availability of raw material as required by company, a ected due to a gap in supplydemand, intense competition and changes in production level. Price uctuations and inability to procure products on time might impact pro tability of the Company.

5. Economic slowdown and changes in regulatory environment may impact on Companys operations.

SEGMENT WISE PERFORMANCE:

The business of the Company falls under a single segment.

OUTLOOK

Considering the fact that the Volatility of demand is high, Your Company expects to facilitate better living and infra-structural solutions in innovative and a ordable manner throughout India. To set benchmark in real estate industry for residential, commercial and Infrastructure Projects by optimum utilization of resources and to develop splendid Infrastructure Company with global Presence in coming 10 years, with an intention to bene t substantially all stake holders of the Company, i.e. minority shareholders, employees, suppliers, distributors and society at large. To keep City, State & Country clean & Green.

RISKS AND CONCERNS

The Company recognize that every business has its inherent risks, and it is required to possess a proactive approach to identify and mitigate them. Risk Management is an important business aspect in the current economic environment and its objective is to identify, monitor and take mitigation measures on a timely basis in respect of events that may pose risks for the business.

The Company has a robust Risk Management Policy and Procedure in place for e ective identi cation and monitoring of risks and implementation of mitigation plans.

INTERNAL FINANCIAL CONTROL AND THEIR ADEQUACY

The Company has an internal control system, which provides protection to all its assets against loss from unauthorized use and for correct reporting of transactions. The company has put in place Proper controls, which are reviewed at regular intervals to ensure that transactions are properly authorized & correctly reported and assets are safeguarded. The internal control systems are implemented to safeguard the Companys assets from loss or damage. To keep constant check on cost structure and to provide adequate nancial and accounting controls and implement accounting standards.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

[Amount in Lacs]

Details of Key Financial Ratios are given below:

HUMAN RESOUCES AND INDUSTRIAL RELATIONS

Your Companys biggest asset is its employees. The Company provides suitable environment for development of leadership skills which enables it to recruit and retain quality professionals in all the elds. Your Companys industrial relation continued to be harmonious during the year under review.

CAUTIONARY STATEMENT

The report contains forward looking statements describing expectations, estimates, plans or words, with similar meaning. The Companys actual results may di er from those projected, important factors that could make the di erence to the Company operations include prices of raw material, energy and nished goods, changes in Government regulations, economic developments globally and within India and labour negotiations. The Company cannot guarantee that the assumptions and estimates in the ‘forward looking statements are accurate or will be realised.