Global Economic Scenario
Global growth is projected to be 3.0 percent in 2026 and 3.4 percent in 2027, down from the average of 3.5 percent observed in 2024–25 and broadly unchanged on a cumulative basis compared with the forecasts in the April 2026 World Economic Outlook (WEO).
The modest slowdown reflects the effects of the war in the Middle East being partly offset by accelerated demand-driven momentum in the global technology cycle thanks to advances in artificial intelligence (AI) and its adoption. The impact varies widely based on countries exposure to the war and position in the technology value chain.
Energy exporters outside the conflict zone benefit from favorable terms of trade, whereas economies plugged into the technology-led upturn experience stronger activity even if they are energy importers. In contrast, activity weakens for energy importers with limited participation in the technology value chain, a group that includes many low-income countries. Global headline inflation is expected to increase from 4.1 percent in 2025 to 4.7 percent in 2026 before declining to 3.9 percent in 2027. Slightly revised upward from April, these projections indicate that the disinflation trend in place since the beginning of 2024 has stalled.
Indian economic scenario opportunities
Over the past decade, India accelerated infrastructure creation across transport, housing, water, energy, logistics, and digital networks. Large-scale investments improved mobility, strengthened service delivery, widened digital access, and supported economic activity across regions. Integrated planning initiatives like PRAGATI, PM GatiShakti, the National Logistics Policy, Sagarmala, PM-WANI, Jal Jeevan Mission and UDAN have shaped the vision of a connected and competitive India. These initiatives have improved competitiveness and supported Indias transition towards a modern and integrated economy.
Infrastructure today shapes everyday life and daily experiences across the country. Roads, railways, airports, digital networks, housing, water supply, and clean energy systems have expanded access to essential services. These systems also influenced how people travel, connect digitally, and participate in economic activity. After 2014, infrastructure development has increasingly focused on scale, integration, and long-term capacity creation.
A major shift during this period was the integration of infrastructure planning, as opposed to the earlier practice of fragmented project execution. Public capital expenditure increased from about 2 lakh crore in FY2014–15 to 12.2 lakh crore in FY2026–27. This reflects sustained focus on long- term infrastructure creation across sectors. Major programmes such as Sagarmala, Bharatmala, PM GatiShakti, PMAY, Jal Jeevan Mission, PM Ujjwala Yojana, and UDAN expanded infrastructure access. These initiatives linked infrastructure growth with household welfare, economic opportunity, and regional development.
Transportation networks serve as the backbone of economic integration. From highways and railways to airports, waterways, and urban transit systems, investments across multiple modes of transport have strengthened connectivity. Together, these networks are creating a more seamless and integrated mobility ecosystem.
A wider and more capable road network is bringing regions closer.
The expansion of National Highways, rural roads and major corridors is enabling smoother movement of people and goods.
? India has the worlds second-largest road network at 63.73 lakh km.
? Length of national highways increased by about 61%, from 91,287 km in FY 14 to 1,46,572 km in March 2026.
? The length of four-lane and above national highways increased from 18,371 km in 2014 to 45,516 km.
? The length of roads increased from 3.86 lakh km during 2000–2014 to 4.11 lakh km during 2014–2026 under Pradhan Mantri Gram Sadak Yojana. Since September 2024, PMGSY-IV has been launched with an objective to provide connectivity to 25,000 unconnected habitations by the year 2029.
? Under Bharatmala, 22,590 km of roads have been completed till 31 March 2026.
Risks and Concerns
Threats are described as anything that would contribute to the interruption of infrastructure development in the country. Threats can be either in the form of major policy changes by the Government, implementation of stringent qualification criteria and insurgency threats in a specific region. These have been described below:
Policy Changes
Policies for development of infrastructure projects are now prepared keeping in view longer gestation period and are being given equal importance by all the ruling Governments as development of the road sector is an example and which is given top most priority at all levels in Government. However, there are chances of major policy changes by the Government either National or at State level which can affect the development of a particular segment of infrastructure.
Looking at the current scenario and demand for infrastructure development in the country, the chances of any major policy change which can adversely affect infrastructure business in the country are negligible Selection Criteria In certain cases the project awarding authorities keep stiff qualification criteria which may disallow small or mid-size developers having inadequate financial or technical scores to bid for the project.
The Company has sufficient scores both in terms of financial or technical aspects to be able to qualify for all categories of projects being implemented or which are in the pipe line
Force Majeure Threats
There are certain regions in the country which may carry the risk of the project having to be abandoned due to force majeure events like natural perils, war, terrorism etc. However, all the Concession Agreements signed provide proper risk cover in such circumstances with no adverse financial impact on the Company as it is backed by Government guarantee and covered through insurance Change in Law In case the Government makes changes in law which could have an impact on infrastructure projects, the Concession Agreement provides for the Concessionaire to be insulated from any adverse impact arising from such change in law Outlook
Discussion on financial performance with respect to operational performance:
In the Financial year 2025-26 the company has work order in hand as on 31.03.2026 Rs.201201.00 Lakhs consisting of 28 major projects in the State of Karnataka. Out of these work orders Rs.59,586.00 Lakhs completed till 31.03.2026 and balance to be carried out is Rs.1,41,615.00 Lakhs in next 1 to 2 Years
The Companys revenue from operations stood at Rs.21,132.56 Lakhs in financial year 2025-26 vis-?-vis Rs. 28,912.73 lakhs in 2024-25, with a decline over last year due to delay in start of the National Highways due to land acquisition by the National Highways Department.
Operating expenses for the year stood at 21,400.74 lakhs in financial year 2025-26 as against 30,270.36 lakhs in financial year 2024-25. The Company EBITDA is increased to Rs. 1,781.38 Lakhs vis-?-vis Rs. Rs. 908.17 lakhs during 2024-25.
Outlook
The construction industry in India is projected to grow by 6.4% in real terms by 2026, driven by substantial investments in transport infrastructure and energy projects. These investments are integral to the fiscal year 2026-27 budget, presented by the Indian Finance Minister Nirmala Sitharaman in February 2026. The budget encompasses a total expenditure of INR53.5 trillion ($596.7 billion), representing 13.6% of GDP.
This is a 7.7% increase over the revised financial year 2025-26 budget. The planned capital expenditure alone amounts to INR12.2 trillion ($136.1 billion), equivalent to 3.1% of GDP, showing an 11.5% rise from the previous year.
The Ministry of Commerce and Industry reported a 7.8% year-on-year increase in total gross fixed capital formation for Q4 2025. Additionally, the Reserve Bank of India noted a 9.1% YoY growth in the industrial production index for infrastructure/construction goods in 2025.
Looking towards the future, the Indian construction industry is expected to maintain a 6% average annual growth rate from 2027 to 2030. This sustained growth is supported by government initiatives focusing on manufacturing, infrastructure, and energy projects. Notably, the government aims to integrate 500GW of non-fossil fuel electricity generation capacity by 2030 and extend an additional 17,000 km of expressways by 2033. A new high-speed road network, valued at INR11.2 trillion ($124.9 billion), is also planned for completion by 2033, indicating robust investment in transportation infrastructure.
Furthermore, a pipeline of 852 PPP projects was introduced in January 2026, collectively valued at INR17 trillion ($189.6 billion). Significant highway projects are also underway in Gujarat, with investments amounting to INR200 billion ($2.2 billion). Key upgrades are focused on strategic routes such as Ahmedabad to Mumbai and Ahmedabad to Udaipur, incorporating four to six-lane carriageways, expressways, and smart traffic systems to enhance logistics, tourism, and rural access.
Risk Management
Risk Management is a key aspect of the "Corporate Governance Principles and Code of Conduct" which aims to improvise the governance practices across the Companys activities. Risk management policy and processes will enable the Company to proactively manage uncertainty and changes in the internal and external environment to limit negative impacts and capitalize on opportunities.
The Board of Directors ("the Board") of Udayshivakumar Infra Limited (‘the Company) has adopted the following policy and procedures with regard to Risk Management as defined below. The Board may review and amend this policy from time to time.
RISK MANAGEMENT POLICY:
1. FRAMEWORK:
Risk Management is a key aspect of the "Corporate Governance Principles and Code of Conduct" which aims to improvise the governance practices across the Companys activities. Risk management policy and processes will enable the Company to proactively manage uncertainty and changes in the internal and external environment to limit negative impacts and capitalize on opportunities.
The Board of Directors ("the Board") of Udayshivakumar Infra Limited (‘the Company) has adopted the following policy and procedures with regard to Risk Management as defined below. The Board may review and amend this policy from time to time.
2. DEFINITIONS
i. ‘Risk in literal terms can be defined as the effect of uncertainty on the objectives. Risk is measured in terms of consequences and likelihood.
Risks can be internal and external and are inherent in all administrative and business activities. Every member of any organisation continuously manages various types of risks.
Formal and systematic approaches to managing risks have evolved and they are now regarded as good management practice also called as Risk Management.
ii. Risk Management is the identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of uncertain events or to maximize the realisation of opportunities. Risk management also provides a system for the setting of priorities when there are competing demands on limited resources. iii. ‘Risk Assessment is the systematic process of identifying and analysing risks. Risk Assessment consists of a detailed study of threats and vulnerability and resultant exposure to various risks.
3. OBJECTIVE & PURPOSE OF POLICY
The main objective of this policy is to ensure sustainable business growth with stability and to promote a pro-active approach in reporting, evaluating and resolving risks associated with the business. In order to achieve the key objective, the policy establishes a structured and disciplined approach to Risk Management, to guide decisions on risk related issues. The specific objectives of the Risk Management Policy are:
i. To ensure that all the current and future material risk exposures of the company are identified, assessed, quantified, appropriately mitigated, minimized and managed i.e. to ensure adequate systems for risk management.
ii. To establish a framework for the companys risk management process and to ensure its implementation.
iii. To enable compliance with appropriate regulations, wherever applicable, through the adoption of best practices.
iv. To assure business growth with financial stability.
4. BACKGROUND AND IMPLEMENTATION
• The Company is prone to inherent business risks. This document is intended to formalize a risk management policy, the objective of which shall be identification, evaluation, monitoring and minimization of identifiable risks.
• This policy is in compliance with Section 134 (3) (n) of Companies Act 2013 and Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 which requires the Company to develop and implement a policy identifying elements of risks, if any, which in the opinion of the Board may threaten the existence of the Company.
• Further, the provisions of Section 177(4)(vii) of the Companies Act, 2013 require that every Audit Committee shall act in accordance with the terms of reference specified in writing by the Board which shall inter alia include evaluation of risk management systems.
• This policy lays down procedure for risk assessment and risk minimization.
• The Board of Directors of the Company and the Audit Committee shall periodically review and evaluate the risk management system of the Company so that the management controls the risks through properly defined network.
• Head of Departments of the Company shall be responsible for implementation of the risk management system as may be applicable to their respective areas of functioning and report to the Board and Audit Committee.
• This policy applies to all areas of the Companys operations.
5. RISK FACTORS
The objectives of the Company are subject to both external and internal risks that are enumerated below:
i. External Risk Factors
• Economic Environment and Market conditions
• Political Environment
• Competition
• Revenue Concentration and liquidity aspects- Each business area of services concerning projects has specific aspects on profitability and liquidity, the risks are therefore associated on each business segment contributing to total revenue, profitability and liquidity. Since the projects have inherent longer time-frame and milestone payment requirements, they carry higher risks for profitability and liquidity.
• Inflation and Cost structure-Inflation is inherent in any business and thereby there is a tendency of costs going higher. Further, the project business, due to its inherent longer timeframe, has much higher risks for inflation and resultant increase in costs.
• Technology Obsolescence –The Company strongly believes that technological obsolescence is a practical reality.
Technological obsolescence is evaluated on a continual basis and the necessary investments are made to bring in the best of the prevailing technology.
• Legal – Legal risk is the risk in which the Company is exposed to legal action.
As the Company is governed by various laws and the Company has to do its business within four walls of law, the Company is exposed to legal risk.
ii. Internal Risk Factors
• Project Execution
• Contractual Compliance
• Operational Efficiency
• Hurdles in optimum use of resources
• Quality Assurance
• Environmental Management
• Human Resource Management
• Culture and values
6. ROLE OF THE BOARD:
The Board will undertake the following actions to ensure risk is managed appropriately:
• The Board shall identify, evaluate and estimate risks at regular intervals
• The Board may delegate monitoring and reviewing of the risk management plan and such other functions as it may deem fit.
• Ensure that the appropriate systems for risk management are in place.
• The independent directors shall help in bringing an independent judgment to bear on the Boards deliberations on issues of risk management and satisfy themselves that the systems of risk management are robust and defensible;
• Participate in major decisions affecting the organizations risk profile;
• Monitor the management of strategic risks;
• Ensure that the processes and controls are in place for managing less significant risks;
• Ensure that an appropriate accountability framework is working whereby any delegation of risk is documented and performance can be monitored accordingly;
• Ensure risk management is integrated into Board reporting and annual reporting mechanisms;
• The Board shall be responsible for framing, implementing and monitoring the risk management plan for the company.
• Convene any board-committees meeting that are deemed necessary to ensure risk is adequately managed and resolved where possible.
7. DISCLOSURE IN BOARDS REPORT:
Board of Directors shall include a statement indicating development and implementation of a risk management policy for the Company including identification therein of elements of risk, if any, which in the opinion of the Board may threaten the existence of the Company.
8. COMPLIANCE AND CONTROL
All the Senior Executives under the guidance of the Chairman and Board of Directors has the responsibility for over viewing managements processes and results in identifying, assessing and monitoring risk associated with Organisations business operations and the implementation and maintenance of policies and control procedures to give adequate protection against key risk. In doing so, the Senior Executive considers and assesses the appropriateness and effectiveness of management information and other systems of internal control, encompassing review of any external agency in this regards and action taken or proposed resulting from those reports.
9. REVIEW AND AMENDMENT
This policy shall evolve by review and modifications by the Board from time to time as may be necessary. This Policy will be communicated to all vertical/functional heads and other concerned persons of the Company.
Internal Control system and their Adequacy
The compliance certificate from the Whole Time Director and the Chief Financial Officer provided in the Annual Report confirms the adequacy of our internal control system and procedure. The Audit Committee in every meeting evaluates Internal Financial control and Risk Management Systems
Material Development in Human Resources/Industrial Relations Front including number of people employed
Our strategic objective is to build a sustainable organization while creating growth opportunities for our employees and generating profitable returns to our investors. The total work force of the Company is 286. Number will be increased with the growth of business of the Company. The Company is aware that satisfied highly motivated and loyal employees contribute to the growth of the Company. The employee relations remained cordial throughout the year.
Disclosure of Accounting Treatment
In the preparation of financial statement for the year ended March 31, 2026, no treatment different from that prescribed in the Accounting Standards has been followed by the Company.
Details of Significant Changes in Key Financial Ratios
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