Transwind Infrastructures Ltd Management Discussions

<dhhead-MANAGEMENT DISCUSSION AND ANALYSIS REPORT</dhhead-

INTRODUCTION

Transwind Infrastructures Limited continues to provide infrastructure development services across the sectors of Railway Signalling & Telecommunication (S&T), City Gas Distribution Networks, Water Distribution Networks, Civil Construction and Irrigation Works. The Company remains focused on delivering quality infrastructure solutions while maintaining operational efficiency and strengthening customer relationships.

INDUSTRY OVERVIEW

Infrastructure continues to be one of the key pillars of Indias economic growth. The Governments continued focus on investments in roads, railways, urban infrastructure, water supply, gas distribution and irrigation projects is expected to create significant opportunities for infrastructure development companies. Increased public expenditure, policy reforms and emphasis on improving connectivity are expected to support long-term growth in the sector.

BUSINESS OVERVIEW

During FY 2025-26, the Company continued to execute projects in Railway Signalling & Telecommunication (S&T), City Gas Distribution, Water Distribution, Civil Construction and Irrigation sectors. Despite a marginal decline in revenue during the year, the Company improved its profitability through efficient project execution, better cost management and operational efficiencies.

The Company reported revenue from operations of ?2,148.54 lakh during FY 2025-26 as against ?2,288.13 lakh in the previous year. Profit after tax increased to ?86.12 lakh from ?58.10 lakh, reflecting improved operational performance.

OPPORTUNITIES

• Continued Government investment in infrastructure and public utility projects.

• Growing demand for railway signalling, gas distribution and water infrastructure.

• Increased focus on urban development and smart infrastructure projects.

• Opportunities arising from expansion of transportation and utility networks.

THREATS

• Intense competition in infrastructure projects.

• Delays in project execution due to regulatory approvals and site-related issues.

• Rising input costs and shortage of skilled manpower.

• Working capital requirements and delays in realization of receivables.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has adequate internal financial control systems commensurate with the size and nature of its business. These controls ensure orderly and efficient conduct of operations, safeguarding of assets, accuracy of financial reporting and compliance with applicable laws and regulations. The management periodically reviews the effectiveness of the internal control systems and takes appropriate corrective measures wherever necessary.

FINANCIAL PERFORMANCE

During the financial year under review, the Company recorded total income of ?2,225.89 lakh as against ?2,340.18 lakh in the previous year. Profit before tax stood at ? 123.94 lakh compared to ? 168.90 lakh in FY 2024-25, while profit after tax increased to ?86.12 lakh from ?58.10 lakh in the previous year.

OUTLOOK

The Company remains optimistic about the long-term growth prospects of the infrastructure sector. With continued Government emphasis on infrastructure development and expansion of railway, gas distribution and water supply projects, the Company expects to improve its business performance by strengthening execution capabilities, maintaining financial discipline and exploring new business opportunities.

RISKS AND CONCERNS

The Company continuously monitors business risks including project execution risks, regulatory changes, liquidity management, cost escalation and market competition. Appropriate risk mitigation measures are adopted to minimize the impact of such risks on business operations.

HUMAN RESOURCES

The Company recognizes its employees as its most valuable asset and continues to maintain cordial industrial relations. It remains committed to providing a safe working environment and enhancing employee skills through continuous development.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has an adequate internal control system commensurate with the size, scale and nature of its business. The internal control framework ensures the orderly and efficient conduct of business operations, safeguarding of assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records, and timely preparation of reliable financial information. The management periodically reviews the effectiveness of these controls and takes necessary corrective actions, wherever required.

KEY FINANCIAL RATIOS

The key financial ratios of the Company for the financial year ended March 31, 2026, together with an explanation of significant changes, wherever applicable, are provided below forming part of this Annual Report.

CATEGORY-WISE PERFORMANCE

The Company undertakes infrastructure development projects in the areas of Railway Signalling & Telecommunication (S&T), City Gas Distribution Network, Water Distribution Network, Civil Construction and Irrigation Works. During the year under review, the Company continued to execute projects across these segments with a focus on operational efficiency, timely execution and quality standards. The Company remains committed to expanding its presence in these sectors and exploring new business opportunities.

CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates and expectations may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied due to various economic, regulatory and other factors beyond the Companys control.