Veer Global Infraconstruction Ltd Management Discussions

FOR THE FINANCIAL YEAR ENDED MARCH 31, 2026

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Indian real estate sector continues to remain an important contributor to economic activity, supported by urbanisation, infrastructure development, rising household incomes, evolving consumer preferences and increasing demand for quality housing and commercial spaces.

The sector has undergone significant structural changes over the past decade, supported by regulatory reforms, increased transparency, formalisation of the industry and greater emphasis on project execution and timely delivery. The implementation of the Real Estate (Regulation and Development) Act, 2016 (RERA), Goods and Services Tax (GST) and tighter lending and compliance norms have contributed to the development of a more organised and transparent real estate ecosystem.

The residential segment continues to constitute a significant part of the Indian real estate market. Consumer preferences are increasingly shifting towards developers with established execution capabilities, financial discipline, construction quality and transparent project practices. At the same time, demand across different price segments remains influenced by affordability, interest rates, employment conditions and household income growth. The commercial real estate segment continues to benefit from increasing formalisation of businesses, expansion of organised enterprises and demand for quality office, retail and warehousing infrastructure. Hospitality and other real estate segments are also benefiting from increasing domestic consumption, travel and infrastructure development.

Going forward, the sector is expected to benefit from Indias continued urbanisation, expansion of the middle-income population, infrastructure development and increasing formalisation of the real estate market. However, developers will need to remain disciplined with respect to project selection, construction costs, funding requirements and execution timelines.

INDIAN HOUSING MARKET

The residential real estate market continues to benefit from structural demand arising from urbanisation, household formation, rising income levels and the increasing preference for quality and professionally managed developments.

Homebuyers are becoming increasingly discerning and are placing greater emphasis on construction quality, timely completion, amenities, location, connectivity and the credibility of developers. This trend has resulted in greater market consolidation and increased preference for established and compliant developers. While the housing market has demonstrated resilience, affordability remains an important consideration, particularly in the affordable and mid-income segments. Changes in interest rates, property prices and household income can influence home-buying decisions and absorption levels.

The easing of interest rates, where sustained, may provide support to housing affordability and improve demand in interest-rate-sensitive segments. At the same time, developers are expected to maintain calibrated launches and focus on projects with sustainable demand and attractive risk-adjusted returns. For the Company, the continuing development of the Indian real estate sector presents opportunities for disciplined growth, particularly in markets where demand for housing and associated real estate infrastructure remains resilient.

OPPORTUNITIES AND THREATS

Opportunities

• Continued urbanisation and migration towards urban and semi-urban centres are expected to support long-term demand for residential properties. Increasing household formation and the gradual improvement in household purchasing power are likely to support housing demand over the medium to long term.

• Growth in household income and improving employment opportunities can increase homeownership affordability and support demand for residential properties. Rising consumer expectations are also creating opportunities for developers capable of delivering quality projects and differentiated customer experiences.

• Regulatory reforms have resulted in increasing formalisation and professionalisation of the real estate industry. Greater transparency and compliance requirements favour developers with established processes, financial discipline and execution capabilities.

• Continued investments in roads, railways, metro networks and other urban infrastructure can create new development corridors and improve connectivity across established and emerging micro- markets.

• The increasing preference of customers and landowners for established developers provides opportunities for organised players to strengthen their market position. Developers with execution capabilities, established relationships and financial discipline may be better positioned to participate in industry consolidation.

• Joint development arrangements and other asset-light development models can provide developers with opportunities to expand their project pipeline while reducing the upfront capital requirement associated with outright land acquisition. Such models, when appropriately structured, can also improve capital efficiency.

Threats

• A sustained increase in property prices without a corresponding increase in household income may affect affordability and defer purchase decisions, particularly in affordable and mid-income segments.

• Changes in interest rates can influence housing affordability and mortgage demand. An increase in borrowing costs may adversely affect customer purchasing decisions and overall market absorption.

• A slowdown in economic activity, employment growth or household income could affect consumer confidence and delay property purchase decisions.

• Prices of cement, steel, labour and other construction inputs can materially influence project costs and margins. Significant increases in input costs may adversely affect project profitability, particularly where pricing flexibility is limited.

• Real estate development is subject to multiple approvals, permissions and regulatory requirements. Delays in obtaining approvals or changes in applicable regulations may affect project timelines and costs.

• Delays in construction, availability of labour and materials, contractor performance or other project- specific factors may adversely affect project completion schedules and cash flows.

• Real estate development requires substantial working capital and project funding. Any mismatch between project cash inflows and funding requirements may affect execution and financial performance.

• Real estate markets are localised. A slowdown in a particular city or micro-market can adversely affect demand, pricing and project absorption.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

The Company is engaged in the business of construction and real estate development. The operations of the Company are considered to be a single segment, namely “Construction and Real Estate Development,” as the resources are allocated and performance is evaluated by the management on an overall basis. Accordingly, there is no separate reportable segment.

OUTLOOK

The long-term outlook for the Indian real estate sector remains constructive, supported by urbanisation, increasing household formation, infrastructure development, rising income levels and continued formalisation of the sector. The residential segment is expected to remain an important growth driver, although demand may vary across price categories and micro-markets. Affordability, interest rates and employment conditions will continue to influence customer purchasing decisions. The Company intends to maintain a disciplined approach towards project selection and execution, with emphasis on market demand, financial viability, construction quality, regulatory compliance and timely delivery. Management remains cautiously optimistic about the medium- to long-term prospects of the Indian real estate sector and believes that disciplined execution and prudent financial management will remain key to sustainable growth.

RISKS AND CONCERNS

• Operational Risks: Operational risks in the construction sector encompass a range of challenges, including the management of complex project timelines, coordination among multiple contractors, sub-contractors, and vendors, and strict compliance with safety norms and regulatory standards. Any delay in procurement of key materials, unexpected site conditions, labour shortages, or lapses in project coordination can result in significant cost overruns and schedule slippages.

• Regulatory and Legal Risks: Delays in obtaining statutory approvals, environmental clearances, and construction permits, as well as changes in land acquisition laws or development regulations, can adversely impact project timelines and overall feasibility.

• Interest Rate Risk: An increase in interest rates can lead to higher borrowing costs for the Company and reduced affordability for buyers, potentially impacting overall demand and project financing.

• Governance Risk: Inadequate corporate governance practices, or non-compliance with regulatory and disclosure requirements can adversely affect stakeholder confidence and the Companys reputation. In the construction sector, where large-scale projects involve multiple stakeholders and regulatory interfaces, weak governance may lead to contractual disputes, delays in decision-making, and legal liabilities.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company maintains internal control systems commensurate with the size and nature of its operations. The internal control framework is intended to provide reasonable assurance regarding safeguarding of assets; accuracy and completeness of accounting records; reliability of financial reporting; compliance with applicable laws and regulations; and prevention and detection of errors and irregularities. The adequacy and effectiveness of internal financial controls are reviewed periodically by the management and are subject to the oversight of the Audit Committee and Board of Directors. objectives.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATION PERFORMANCE

During the year under review:

• Total Revenue: Rs. 6.90 Crore

• EBITDA: Rs. 4.76 Crore

• PAT: Rs. 1.61 Crore

• EPS: Rs. 1.00 per share

There is an improvement in the performance due to operational optimization.

HUMAN RESOURCES / INDUSTRIAL RELATIONS

The Company recognizes that its employees are a vital asset and the contribution of it in growth and success. During FY 2025-26, efforts were made to train the manpower for the overall improvement of the same. The employee strength as of March 31, 2026 was 5. Industrial relations remained cordial throughout the year.

KEY FINANCIAL RATIOS

Ratio	FY 2025-26	FY 2024-25	Change (%)	Remarks
Debtor Turnover	0.35	0.49	66.12%	Slower collection of receivables.
Inventory Turnover	0.22	0.57	-37.14%	Decreased rotation of inventory.
Interest Coverage Ratio	1.98	2.18	1%	Fall due to increase in finance costs.
Current Ratio	2.31	2.63	16.34%	Improved due to better Current Assets Management
Debt-Equity Ratio	0.35	0.49	66.12%	Increase in borrowings.
Net Profit Margin (%)	0.23	0.16	0.00%	Improved Profitability.

DISCLOSURE OF ACCOUNTING TREATMENT

The Company has followed the accounting principles and policies consistently and has prepared its financial statements in accordance with the applicable Indian Accounting Standards (Ind AS) as prescribed under the Companies Act, 2013, read with the relevant rules issued thereunder. There is no deviation in the accounting treatment during the year from that prescribed in the applicable Accounting Standards.

CAUTIONARY STATEMENT

The Statements in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates, plans, industry, conditions, and events are “forward-looking” statements within the meaning of the applicable laws or regulations. The statements are based on certain assumptions and expectations of future events. Actual outcomes may vary significantly due to factors beyond the Companys control. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. The Companys actual results, performance, or achievements could thus differ materially from those projected in any such forward-looking statements. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or event. Investors are advised to conduct thorough due diligence before making any investment decisions.

By Order of the Board of Directors

For: Veer Global Infraconstruction Limited

Sd/-

Vijaybhai Vagjibhai Bhanshali

(Managing Director - DIN: 05122207)

Date: August 10, 2026 Place: Mumbai