Univastu India Ltd Management Discussions

GLOBAL ECONOMY AND CONSTRUCTION INDUSTRY OUTLOOK

The global economy in 2025-26 presented multiple opportunities for the construction sector, supported by economic recovery, technological innovations, and increasing infrastructure investments worldwide. Key benefits for the industry included:

Increased Investment: Rising global investments in infrastructure, driven by recovery measures and government stimulus programs, opened opportunities for construction firms to participate in large-scale international projects and collaborations.

Technological Advancements: Adoption of advanced technologies such as Building Information Modeling (BIM), digital project management tools, and sustainable construction methods improved efficiency, reduced costs, and enhanced project outcomes.

Strengthened Supply Chains: Improved global logistics and supply chains facilitated smoother procurement of construction materials and equipment, minimizing project delays and reducing costs.

Foreign Direct Investment (FDI): Increased FDI in developing economies supported infrastructure development, creating opportunities for construction companies to expand into emerging markets.

Economic Growth: Growth in major economies boosted demand for residential, commercial, and industrial projects, benefiting construction service providers.

Green Building Trends: Rising emphasis on sustainability encouraged eco-friendly practices and the adoption of green construction technologies, creating niche opportunities.

Urbanization: Rapid global urbanization continued to fuel demand for housing, transportation, and public infrastructure, generating long-term opportunities for the industry.

Regulatory Harmonization: Efforts to standardize construction norms across regions eased compliance requirements and encouraged international collaboration.

Favourable Financial Conditions: Supportive financial markets, including favourable interest rates and credit availability, enabled funding for large projects.

Collaborations and Partnerships: Strengthened global partnerships provided access to expertise, advanced technologies, and diversified projects.

INDIAN ECONOMY AND CONSTRUCTION SECTOR

Indias economy in FY 2025-26 demonstrates robust momentum with a projected real GDP growth of 7.4%. The construction and infrastructure sector serves as a vital anchor, backed by a massive ?11.21 lakh crore capital expenditure allocation in the Union Budget, driving structural urban development, residential demand, and transport logistics. The Economic Survey 2025-26 highlighted infrastructure as a key growth driver and noted that Indias effective capital expenditure was ?15.48 lakh crore in FY 2025-26. Key highlights influencing the construction industry included:

Government Infrastructure Spending: Strong focus on infrastructure development, particularly through projects in highways, metro systems, smart cities, and affordable housing, created significant opportunities.

Urban Development: Rapid urbanization and expansion of metropolitan areas drove demand for residential, commercial, and industrial infrastructure.

Employment Dynamics: The construction sector experienced varied labor market trends, with skill shortages in some regions and high attrition in others, affecting project execution timelines.

Regulatory Environment: Stricter building codes, environmental compliance, and safety norms increased complexity and costs but also improved standards in project delivery.

Technological Adoption: Wider implementation of BIM, ERP modules, and sustainable practices improved efficiency and long-term cost management.

Private Sector Participation: Mixed private sector sentiment influenced real estate and commercial construction, with select segments showing strong recovery.

Global Influences: Supply chain disruptions and material price volatility, driven by global uncertainties, impacted project costs and delivery schedules.

COMPANY PERFORMANCE

During the financial year 2025-26, your Company delivered a strong performance, reflecting resilience, operational efficiency, and a focus on sustainable growth.

• Total Income: ?22,921.58 Lakhs (Previous Year: ?10,300.55 Lakhs)
• Profit Before Tax (PBT): ?3,075.70 Lakhs (Previous Year: ?1,280.62 Lacs)
• Profit After Tax (PAT): ?2,338.50 Lakhs (Previous Year: ?1,036.24 Lacs)

This growth was supported by efficient execution, strategic diversification, and a continued emphasis on quality and compliance.

OPERATIONS AND BUSINESS OVERVIEW

The company is dedicated to enhancing project execution by minimizing costs, optimizing overheads, adhering to schedules, and maximizing turnover while upholding high quality. It has acquired certifications for quality, environmental standards, and occupational health and safety. The company is committed to delivering top-notch products and has integrated an ERP module to oversee project delivery and company operations. Additionally, there is an efficient monitoring process in place to reduce environmental impact during project execution, and the company consistently gathers customer feedback.

Certifications & Recognitions:

• ISO 9001 (Quality Management)
• ISO 18001 (Occupational Health & Safety)
• ISO 14001 (Environmental Management)
• PWD Class 1A (Unlimited) and CIDCO Class 1A (Unlimited) certifications, reinforcing capability for large-scale projects.

Specialization:
The Company specializes in Integrated engineering, procurement and construction (EPC) services across civil, structural, and infrastructure projects.

Establishment & Footprint:
Founded in April 2009, with headquarters in Pune, and operational presence across Maharashtra, Goa, Haryana, and Uttar Pradesh.

Core Focus Areas:
Execution of metro stations, hospitals, sports complexes, commercial buildings, mass housing, water supply, drainage systems, cold storage, educational institutions, bridges, and roads.

Current Activities:
Active in government and private infrastructure projects, alongside trading of construction materials such as steel, cement, and electrical products.

Strategic Initiatives:
Enhancing in-house execution capabilities to reduce dependency on third-party contractors. Leveraging ERP for project monitoring and operational efficiency. Strengthening infrastructure and aligning with sustainable practices to improve long-term competitiveness.

BUSINESS STRENGTHS AND STRATEGIES

Strong project execution capabilities with focus on cost optimization, quality, and timely delivery. Certified management systems ensuring compliance with global quality, safety, and environmental standards. Integration of digital solutions (ERP) for project monitoring and execution. Active customer feedback mechanisms and focus on sustainability to minimize environmental impact.

INDIAN INFRASTRUCTURE SECTOR - OUTLOOK

The infrastructure sector continues to play a pivotal role in Indias economic development. For FY 2025-2026, the following factors are shaping the industry:

1. Government Initiatives: Flagship programs like Bharatmala, Sagarmala, Smart Cities Mission, the National Logistics Policy, UDAN and PM Gati Shakti continue to expand infrastructure capacity.
2. Strong Public Capital Expenditure: Sustained government spending on infrastructure remained a major growth driver during FY 2025-26. Increased capital expenditure is aimed at creating high-quality physical infrastructure and generating a multiplier effect across various sectors of the economy.
3. Transportation Expansion: Road networks, metro projects, airport modernization, and railway upgrades remain key growth drivers.
4. Energy Sector: Focus on renewable energy (solar, wind), grid modernization, and enhanced generation capacity.

5. Urban Development: Rapid urbanization continues to create demand for housing, water supply, sanitation, waste management, urban mobility and other municipal infrastructure. The Government announced an Urban Challenge Fund of ?1 lakh crore with an allocation of ?10,000 crore proposed for FY 2025-26 to support urban development and bankable projects.
6. Challenges: Project delays, regulatory hurdles, land acquisition complexities, and rising input costs.
7. Technology Integration: Wider adoption of digital construction, automation, and green technologies.
8. Public-Private Partnerships (PPP): Strong reliance on PPP models to implement large projects.
9. Sustainability: Increasing focus on minimizing environmental footprint and maximizing social benefits.
10. Economic Impact: Infrastructure development remains a primary driver of economic growth, employment generation, and productivity enhancement.

MANAGEMENT SYSTEM

The Company continues to emphasize efficiency in project execution by focusing on cost optimization, streamlined overheads, timely delivery, and enhanced productivity per employee. Simultaneously, strict working capital discipline is maintained in a tight liquidity environment without compromising project quality.

The Company adheres to globally recognized management standards:

• ISO 9001:2015 (Quality Management System)
• ISO 14001:2015 (Environmental Management System)
• ISO 45001:2018 (Occupational Health & Safety Management System)

Our commitment to quality delivery is reinforced through the Quadra ERP system, implemented across all project sites to ensure real-time monitoring, efficient project management, and company-wide integration.

Environmental responsibility remains a core value. The Company has developed a robust monitoring framework to minimize environmental impact during project execution. Regular quarterly customer feedback surveys further enable continuous improvement in project delivery and client satisfaction.

RISK MANAGEMENT AND OPERATIONAL RESILIENCE

During the year, the Company maintained strong operational and financial controls to ensure resilience in a dynamic environment. Key highlights include:

Health & Safety Measures: All construction sites and offices continue to strictly implement safety protocols such as thermal screening, enhanced sanitation, social distancing, mandatory use of masks, and restricted visitor entry.

Cost Management: Non-essential expenditure was curtailed and resources reallocated to safeguard liquidity.

Tendering Process: As government infrastructure projects are predominantly awarded through competitive bidding (technical + financial), profitability depends on the ability to qualify technically and remain cost-competitive. The Companys expertise, strong net worth, and execution record enhance its ability to secure large-scale projects.

Raw Material Volatility: Cement and steel form a major cost component. Long-duration contracts expose the Company to price fluctuations, potentially impacting margins. Mitigation strategies include careful project selection and escalation clauses where applicable.

Skilled Manpower Availability: Construction requires specialized technical resources. The Company selectively bids based on manpower availability and has HR policies to attract, retain, and develop skilled talent.

Timely Completion: Recognizing the reputational and financial risks of delays, the Company practices selective bidding and robust project planning. Its track record of timely execution demonstrates operational strength.

Working Capital & Liquidity: Delayed realization of receivables can impact cash flows. To mitigate this, the Company prefers projects backed by central and multilateral funding agencies, ensuring timely payments and sustainability of operations.

Regulatory Risks: The Companys operations are governed by the Companies Act, 2013 and subject to evolving statutory and regulatory frameworks. Any changes in law, compliance requirements, or accounting standards could affect operations, though the Company maintains strong governance practices to adapt effectively.

OPPORTUNITIES AND CHALLENGES

Government Infrastructure Spending: Infrastructure remains central to Indias economic development. Increased allocation in roads, housing, urban development, and industrial corridors is expected to directly benefit the construction sector.

Technological Advancements: The adoption of advanced project monitoring tools, BIM, and digital construction technologies is driving higher efficiency and improved project supervision.

National Infrastructure Pipeline (NIP): The Government of Indias ambitious NIP aims to develop world-class infrastructure and achieve the vision of a USD 5 trillion economy, opening significant opportunities for sector participants.

Atmanirbhar Bharat: Emphasis on self-reliance promotes indigenous products and services, boosting domestic construction activity.

Labour Availability: Migration of workers and hesitancy to return post-pandemic continues to pose challenges, creating manpower shortages in select regions.

Rising Raw Material Costs: Global supply chain disruptions and volatility in commodity prices, especially steel and cement, increase project costs and impact margins.

INTERNAL CONTROLS SYSTEM AND ADEQUACY

The Company has a well-established internal control framework to ensure operational efficiency, reliability of financial reporting, and compliance with applicable laws and regulations. Internal controls were tested during the year, with no material weaknesses observed in design or effectiveness.

The framework is supported by an independent Internal Audit function, which reports directly to the Audit Committee of the Board. Risk assessments, inspections, and periodic safety audits strengthen operational safeguards. Assets are adequately protected through comprehensive insurance coverage.

SUBSIDIARIES AND CONSOLIDATED FINANCIAL STATEMENTS

As of March 31, 2026, the Company has Three subsidiaries:

1. Univastu HVAC India Private Limited
2. Univastu Charitable Foundation
3. Univastu NUOS IoT Systems Private Limited

The Consolidated Financial Statements have been prepared in accordance with Indian GAAP and applicable provisions of the Companies Act, 2013, ensuring true and fair presentation. Significant accounting policies are disclosed in the Notes to Financial Statements.

A statement containing key highlights of subsidiaries performance is attached to the Consolidated Financials in Form AOC-1.

In compliance with Section 136 of the Companies Act, 2013, financial statements of the Company and subsidiaries are available on the corporate website (www.univastu.com) and can be inspected at the Registered Office upon request.

HIGHLIGHTS OF SUBSIDIARY COMPANIES

Univastu HVAC India Private Limited
Incorporated on October 11, 2018, with a paid-up capital of ?1,00,000/-
Engaged in HVAC contracting, project execution, consulting, trading, and allied services.

Univastu Charitable Foundation
Incorporated on December 4, 2022, with a paid-up capital of ?25,000/-
Established to support charitable and social initiatives.

Univastu NUOS IoT Systems Private Limited
Incorporated on October 15, 2025, with a paid-up capital of ?25,00,000/-
Established to design, develop, manufacture, trade, distribute, install, and maintain smart wireless Building Management Systems (BMS), fire safety solution, and IoT-based products and services.

FINANCIAL REVIEW

CONSOLIDATED INCOME STATEMENT SUMMARY

(? in Lacs)

Particulars	2025-26	2024-25	YOY %
Revenue from operations	24,334.86	17,117.78	42
Other income	168.63	85.20	100
Operating Expenses	20,342.15	14,289.01	42
EBITDA	3,992.71	2,828.75	41
Financial Charges	399.55	427.77	(7)
Depreciation & Amortization	170.42	137.75	24
Profit Before Tax	3,591.37	2,348.42	53
Tax Expenses	1,022.49	797.16	28
Profit After Tax	2,568.88	1,551.26	66
EPS (Basic)	6.48	8.78	(26)

Ratio

Ratio	2025-26 (Standalone)	2024-25 (Standalone)	Variance
Current Ratio	1.46	1.97	(25.89%)
Debt to Equity Ratio	0.22	0.30	(26.67%)
Debt Service Coverage Ratio	10.41	2.83	267.84%
Return On Capital Employed	27.29%	16.19%	68.56%
Net profit ratio	10.39%	10.68%	(2.72%)
Return on Equity	22.71%	13.02%	74.42%

Notes:

• Current ratio [Current assets ? Current liabilities]
• Debt-equity ratio [Total debt excluding lease liability ? Equity]
• Debt service coverage ratio [(Profit after tax + Finance cost + Depreciation) ? (Finance cost + Long term debt)]
• Return On Capital Employed [Earnings before interest and taxes ? Capital Employed]
• Capital Employed [Tangible net worth + Deferred tax liabilities + Lease liabilities]
• Net profit ratio [Net Profit after tax ? Net sales]
• Return on Equity [Net Profits after taxes ? Shareholders equity]

HUMAN RESOURCES

The Company believes that people are its most valuable asset. Human Resource policies are designed to foster a performance-driven culture while aligning with the Companys core values. Training and development programs were conducted for both technical and soft skills. Recruitment focused on building a strong technical talent pool and adopting digital HR practices for smarter workforce management. Average headcount during FY 2025-26 stood at 143 employees, reflecting selective hiring and retention of skilled resources. Employee turnover remained moderate, supported by structured HR policies, performance metrics, and a dynamic organizational structure. The Company continues to invest in people-centric strategies, building a competent, motivated, and digitally enabled workforce to support long-term growth.

CAUTIONARY STATEMENT

The Management Discussion and Analysis contains statements describing the Companys objectives, projections, estimates and expectations, which may be forward looking in nature. These statements are made within the meaning of applicable laws and regulations and are based on informed judgements and estimates. There cannot be any guarantee of the previous performance continuity as future performance also involves risks and uncertainties. These may include but not limited to the general market, macroeconomics, interest rates movements, competitive pressures, technological and legislative developments and other key factors that may affect the Companys business and financial performance.

For and on behalf of the Board of Directors

Univastu India Limited

Sd/-

Dr. Pradeep Khandagale

Chairman and Managing Director

DIN: 01124220

Sd/-

Mrs. Rajashri Khandagale

Non-executive Director

DIN: 02545231

Place: Pune

Date: 7th August, 2026