We did not rebuild merely to recover; we rebuilt to lead India's next infrastructure growth story

 Overview

India stands at the threshold of a golden phase in its infrastructure growth story. A confluence of sustained public capital expenditure, policy continuity and rising private participation has, over recent years, transformed the nation's roads, industrial corridors and civic infrastructure at a pace without precedent in its history. This phase promises to create meaningful opportunities for infrastructure-focused companies possessing rich, cross-format execution experience and a sound Balance Sheet capable of supporting the scale of ambition that lies ahead. MBL Infrastructure Limited is one such Company - a business that, having weathered a demanding period of consolidation, now stands ready to capitalize on the unfolding national infrastructure transformation.

FY2025-26: Transitioning from recovery to growth

 FY2025-26 marked an inflection point in the Company's journey. The year saw the Company's focus shift decisively from financial recovery and organisational restructuring towards a new chapter of sustainable and profitable growth. In the years preceding this transition, management had prioritized strengthening the Company's financial position, restoring the confidence of its lenders and resolving legacy issues, recognising that these foundations had to be secured before the next phase of growth could responsibly begin. With the majority of restructuring initiatives now behind it, the Company entered FY2026- 27 with a stronger financial foundation, sharpened operational readiness and renewed confidence in pursuing new business opportunities.

Financial strengthening and banking support

Significant progress was made during the year in improving the Company's financial health. Focused recovery of long-term receivables, together with a deliberate strengthening of liquidity and working capital, restored a measure of financial discipline that had long been the Company's ambition. Regular banking facilities were reinstated, once again providing the Company with access to the working capital required to bid for and execute new infrastructure projects. Financial institutions renewed their confidence in the Company's underlying business fundamentals, extending additional banking limits in support of future project execution. Shareholders, for their part, approved the raising of H300 crore, a decision that lent the Company welcome financial flexibility to pursue its growth strategy and further strengthen its capital base. Underlying each of these steps was a single, consistent objective: to ensure that the Company's future expansion would rest upon a robust financial platform rather than on excessive leverage.

Resolution of subsidiaries

Six of the Company's eight subsidiaries were successfully cleaned up and rendered debt-free. The Resolution Plan for Suratgarh Bikaner Toll Road Company Private Limited has been submitted and is under active consideration by lenders, with management expecting this subsidiary to be resolved during FY2026- 27, a milestone that would leave only one further subsidiary to be addressed. The completion of this exercise promises a leaner organisation, marked by improved governance, lower liabilities and greater operational efficiency.

Changing dynamics of the highway EPC sector

The highway EPC sector experienced intense competitive pressure over the preceding three years, as aggressive bidding led to projects being awarded at commercially unsustainable prices. Margin compression emerged as a defining challenge across the industry, with several companies choosing to prioritise order acquisition over long-term profitability. The Company chose a different path. Rather than matching irrational bids, it adopted a disciplined approach, participating selectively in tenders while preserving its financial stability and continuing to strengthen its business fundamentals. The prevailing market environment only reinforced the wisdom of this course, underscoring the importance of disciplined bidding, prudent capital allocation and a preference for sustainable returns over headline topline growth.

Diversification to drive the next phase of growth

As part of its long-term strategy, the Company has begun transitioning from a business predominantly built around highway EPC contracting towards a more diversified infrastructure platform. Growth opportunities are being evaluated across a wide canvas of sectors spanning Steel Plant modernisation, civil engineering projects, Urban Infrastructure Projects, Public Health Engineering, Irrigation Infrastructure, Electrical Transmission, Industrial Infrastructure Projects, Developments connected to the Commonwealth Games in Ahmedabad and strengthening the Quarrying, Concrete, Bitumen, Construction material & tolling divisions of the Company. This diversification is intended to broaden the Company's revenue base, reduce its dependence on any single segment and build a more balanced and resilient project portfolio. Importantly, this strategic expansion is designed to build upon the Company's existing engineering capabilities rather than venture into wholly unfamiliar terrain.

Leveraging established engineering credentials

 The Company brings to this next phase decades of execution experience across a wide spectrum of infrastructure projects, providing a strong foundation upon which to diversify. Its track record includes modernisation projects executed for SAIL, the Durgapur Steel Plant modernisation, petrochemical infrastructure projects, civil engineering works, and infrastructure delivered for the Commonwealth Games. These credentials position the Company to compete effectively across multiple infrastructure sectors, while meaningfully reducing the execution risk that so often accompanies diversification.

Building a quality order book

Future order acquisition would be guided not by volume alone, but by the ambition to build a diversified and genuinely high-quality order book. Project selection would continue to prioritise commercial viability, execution capability, risk profile and long-term profitability, with diversification across infrastructure sectors expected to improve revenue visibility even as it reduced concentration risk.

Profitability will remain our primary focus

 The Company remains committed to a disciplined bidding strategy and resolves not to compromise profitability merely to secure new orders. New projects would be pursued only where they meet the Company's commercial expectations and profitability thresholds. The Company is commitment to sustainable growth and disciplined capital allocation. In every respect, long-term shareholder value creation will take precedence over aggressive revenue expansion or the pursuit of market share for its own sake.

West Bengal as a strategic growth opportunity West Bengal continues to hold particular significance for the Company, underpinned by its long-standing corporate presence in Kolkata and its extensive execution experience across the state. The Company sees growing opportunities for industrial and infrastructure development across eastern India, and considers itself well placed to participate in the projects that would follow, owing to its established regional presence and long-standing relationships. Its existing office infrastructure, execution track record and deep understanding of the regional market are expected to provide a genuine competitive advantage as investment activity in the region gather momentum.

Strategic priorities for FY2026-27 and beyond

 Looking ahead, the Company has set out a clear set of priorities to guide the next phase of its journey. Foremost among these is the completion of the remaining subsidiary resolution process. The Company aims to get new orders while building a genuinely diversified portfolio spanning highways, industrial infrastructure, civil engineering, irrigation, power transmission and other infrastructure. The Company will strengthen the Quarrying, Concrete, Bitumen, Construction material & tolling divisions. Pricing discipline would be maintained throughout through selective bidding and prudent project execution. The Company intends to draw upon its strengthened banking relationships, improved liquidity and enhanced financial flexibility to participate in larger and more complex infrastructure opportunities. Taken together, these priorities mark the Company's transition from a phase of financial recovery to one of sustainable, diversified and profitable growth - a journey undertaken in the continuing service of long-term value for all its stakeholders.

Anjanee Kumar Lakhotia

Chairman