BUSINESS OVERVIEW

Mahendra Realtors & Infrastructure is a multi-disciplinary contracting company specializing in Structural Repairs, Rehabilitation, Retrofitting, Waterproofing, Corporate Interiors, BOT Projects, Maintenance, Construction, and Infrastructure Restoration.

Core Expertise & Notable Projects

The company has successfully delivered over 200+ projects across 50+ clients, maintaining a strong track record of on-time completion. Major government and public sector clients include projects at CIDCO Vashi & Belapur Railway Stations, Ghatkopar (IIT Bombay certified), SBI Harbour Heights, Begumpet Airport (Hyderabad), IIT Bombay, SVP Hospital Ahmedabad, and VVIP Circuit House Pune.

Key Services

1. Structural Repairs & Retrofitting

• Techniques: Jacketing, Polymer Modified Mortar, Micro Concreting, Fibre Wrapping, Epoxy/Cement Grouting, Carbon/Glass Laminates.

• Enhances structural integrity using advanced methodologies.

2. Waterproofing

• Solutions: Brickbat Coba, PU Coating, Cementitious Systems, EPDM Membranes, Injection Grouting.

• Targets foundations, roofs, terraces, walls to prevent water ingress and ensure durability.

3. Corporate Interiors

• Turnkey execution of civil, HVAC, fire safety, plumbing, electrical, data, and audiovisual systems.

• Executed high-end interiors at Loma IT Park, CIDCO Exhibition Centre, Stock Holding Corp., and Air India Corporate Office.

4. BOT (Build-Operate-Transfer) Projects

• Comprehensive delivery model encompassing design, finance, construction, operation, and handover.

• Unique application in building sector, not just infrastructure.

• Revenue generation through subleasing during operation phase before eventual transfer to authority.

5. Maintenance

• Includes routine and preventive maintenance of buildings and facilities.

• Covers inspection, troubleshooting, minor repairs, and budget implementation.

6. Construction

• Full-cycle construction of government and institutional buildings, from approvals to handover.

• Adheres to quality standards and timeline compliance.

7. Infrastructure Restoration

• Specialized in bridge and culvert repairs including girder lifting and bearing replacement under live traffic.

• Successful execution of complex projects like Dr. Baba Saheb Ambedkar Flyover, Surat.

Project Execution Lifecycle

1. Tender Publication by clients (Govt/Private)

2. Bid Submission (technical & financial)

3. Letter of Award (LOA) issued to lowest qualified bidder

4. Work Order & Site Handover

5. Design Approval & Planning

6. Procurement & Resource Deployment

7. Civil Work Execution

8. Electrical & Mechanical Installations

9. Trial Run & Quality Checks

10. Commissioning & Final Handover

Typical Contractual Terms

• Types: Item-rate or Percentage-rate Contracts

• Inclusions: Design, Procurement, Construction, Operation & Maintenance

• Key Clauses: Indemnity, Subcontract Restrictions, Performance Security, Defect Liability, Retention Money, Liquidated Damages, Insurance, Default Events, Termination

• Escalation clauses may apply in specific cases.

Currently the company have 76 full time employees as on June 30, 2025. The Banker to the company is Union Bank of India.

INDUSTRY ANALYSIS

Infrastructure Sector in India: An Engine of Growth

India’s ambitious growth trajectory, especially from 2023 onwards, places infrastructure development at the heart of its economic progress. Infrastructure is not merely a sector—it is a critical enabler that supports the country's journey towards becoming a US$ 26 trillion economy. Significant investments in upgrading physical infrastructure, aligned with initiatives for enhancing the ease of doing business, continue to boost efficiency and cost-effectiveness across industries.

Prime Minister Narendra Modi has consistently emphasized infrastructure as a pillar of good governance, and recent years have witnessed an aggressive push through transformative policies and programs. The US$ 1.3 trillion Gati Shakti Master Plan stands out as a flagship initiative aimed at ushering in systemic reforms, with remarkable progress already visible.

Supportive infrastructure is central to the success of India’s manufacturers, improving the logistics ecosystem, lowering freight costs, and enhancing export efficiency. Initiatives such as "Smart Cities Mission" and "Housing for All" have gained momentum due to this renewed infrastructure focus. In parallel, foreign interest has surged, with Saudi Arabia aiming to invest US$ 100 billion across sectors including energy, infrastructure, and mining.

The sector encompasses power, roads, bridges, dams, and urban infrastructure, serving as a catalyst for development in housing, construction, and township planning. The National Infrastructure Pipeline (NIP), Make in India, and the Production-Linked Incentive (PLI) Scheme work synergistically to advance the sector’s growth. Notably, over 80% of India’s historical infrastructure spend has been directed towards transport, electricity, water, and irrigation, though focus is now diversifying with evolving demographic and environmental needs.

Market Dynamics and Key Figures

In the Interim Budget 2024-25, India’s capital investment outlay for infrastructure was raised by 11.1%, reaching ₹11.11 lakh crore (US$ 133.86 billion)—3.4% of GDP. The Indian Railways alone saw a capital outlay of ₹2.55 lakh crore, a 5.8% increase from the prior year. As of now, the NIP includes 9,142 projects across 34 sub-sectors, with a projected investment of US$ 1.9 trillion—nearly 50% of these projects are in transportation.

The Indian logistics market, valued at US$ 317.26 billion in 2024, is set to expand to US$ 484.43 billion by 2029, at a CAGR of 8.8%. The government targets to improve India’s Logistics Performance Index rank to 25 and reduce logistics costs from 14% to 8% of GDP within five years.

The metro rail network, now the fifth largest globally, has reached 810 km, with operations in 20 cities. Ongoing construction covers 919 km in 26 cities, putting India on track to surpass Japan and South Korea. In aviation, the Civil Aviation Ministry's Vision 2040 estimates 200 operational airports by 2040, with major cities like Delhi and Mumbai having three international airports each.

FDI has played a major role in infrastructure growth, with construction and development sectors attracting US$ 61.22 billion between April 2000 and June 2024. In real estate, investment reached US$ 2.77 billion in Q2 2024 alone, while property sales hit record highs in top cities with a 26% YoY growth in 2023.

The Road Ahead

Infrastructure capital expenditure is projected to grow at 11.4% CAGR (2021-26). As India eyes a US$ 5 trillion economy by 2027, the government’s budget reflects sharp focus on roads, railways, and shipping to spur private sector participation and rural employment.

To accommodate urban population growth, India needs to invest US$ 840 billion over the next 15 years in urban infrastructure. This investment must also account for maintenance and sustainability, ensuring longevity of buildings, bridges, ports, and airports.

The growing demand from Tier II and III cities, driven by digitization and decentralization of corporate operations, is further narrowing the urban-rural divide. The infrastructure landscape is now seeing exponential growth in commercial and residential real estate, fueled by India’s economic aspirations and foreign investor confidence.

India is well-positioned for a transformational leap in infrastructure development, aided by strategic global partnerships, such as the India-Japan Coordination Forum, and internal initiatives focused on sustainability and smart cities.

Interior Design Industry in India: From Function to Fashion

India’s interior design industry has rapidly evolved from a niche luxury service to an essential component of both residential and commercial spaces. Combining art and science, interior design today represents an integral process that enhances spatial aesthetics and functionality through conceptual planning, spatial analysis, and design execution.

Driven by urbanization, rising disposable income, and changing lifestyle preferences, the industry is undergoing a transformation that is setting the stage for long-term growth. With a projected market size of US$ 81.2 billion by 2030, the sector is expected to grow at a CAGR of 14.3%, positioning India as a design-forward nation.

Key Growth Drivers

The rise of India’s middle class, empowered by higher disposable incomes, has resulted in a surge in demand for personalized interior design services. Simultaneously, the booming real estate market, especially in urban centers, has created massive demand for interior solutions that maximize space utility and reflect evolving aesthetic sensibilities.

India's urban population, currently about 34%, is forecast to touch 40% by 2030, further fueling residential and commercial property development. As property prices rise, space optimization becomes more critical, enhancing the value of professional interior designers who can effectively transform small areas into functional, stylish living and working environments.

Social media platforms such as Instagram and Pinterest, along with the growing influence of smart home technologies, have reshaped consumer behavior. The exposure to global design trends has made modern Indian consumers increasingly design-conscious, often seeking contemporary, theme-based interiors.

Furthermore, technological innovations like virtual reality (VR) tools are allowing both designers and clients to visualize concepts in real-time—though adoption is still limited due to cost barriers.

Government Support and Institutional Framework

The Pradhan Mantri Awas Yojana (PMAY) has created a substantial push for affordable housing, indirectly increasing demand for interior design services. In the 2024-25 Union Budget, ₹30,170 crore (US$ 3.6 billion) was allocated for PMAY (Urban) 2.0, with ₹4,000 crore (US$ 477 million) dedicated to Credit Linked Subsidy Scheme (CLSS).

The Smart City Mission is also opening up opportunities for designers to contribute to sustainable urban environments. Additionally, the India Design Council under the Ministry of Commerce & Industry is actively promoting design excellence across sectors, aiming to make India a design-driven economy.

In a bid to support startups and small businesses, the Design (Amendment) Rules, 2021 introduced reduced registration fees for design innovations, encouraging formalization and protection of creative work.

Conclusion

Both the infrastructure and interior design industries are riding on the wave of India’s rapid economic transformation. While infrastructure provides the backbone for development, the interior design sector is redefining how spaces are utilized and experienced.

As India inches closer to becoming a global economic powerhouse, these sectors will continue to play pivotal roles in shaping the country’s physical, social, and cultural landscape—from mega highways and airports to aesthetically curated living and workspaces.

BUSINESS STRENGTHS

1. Established Reputation
A strong track record in executing government projects fosters trust among clients and stakeholders. This reputation enhances customer acquisition, partner confidence, employee satisfaction, and resilience during challenging periods.

2. Specialized Skills
Expertise in government procurement, regulatory compliance, risk management, and adherence to ISO standards positions the company favorably in public sector contracting. These specialized skills support timely, high-quality project execution in a complex and regulated environment.

3. Strong Network
Well-established relationships with government bodies and industry partners provide a strategic advantage in securing contracts, accessing market intelligence, and driving collaborative growth within the government sector.

4. Financial Stability
Solid financial health ensures the capacity to invest in projects, manage operational expenses, and navigate economic uncertainties. This stability is essential for fulfilling large-scale, long-term government contracts.

BUSINESS STRATEGIES

1. Expanding Client Relationships and Service Verticals
The company aims to leverage its strong client relationships and sector expertise to expand service offerings across new verticals, including entry into the waste management sector. Focus areas include leadership development, skill enhancement, and goal alignment through embedded management teams and the involvement of an Organizational Development Coach to enhance workforce capabilities.

2. Talent Development and Operational Efficiency
Strategic emphasis is placed on attracting, retaining, and nurturing skilled talent through continuous organizational development and employee training programs. Innovative recruitment practices and sustained skill development initiatives are designed to enhance both technical and soft skill competencies.

3. Geographic Expansion
While headquartered in Mumbai, the company currently undertakes projects across various cities such as Delhi, Surat, Shirur, Pune, Vallur, and Vadodara. Efforts are underway to further expand geographically to grow the client base and enhance revenue streams.

4. Technological Focus in Waste Management
The company plans to scale operations in construction and demolition (C&D) waste management through Debries Solution Pvt Ltd, a promoter group entity with a registered patent in this domain. Plans include positioning Debries as a subsidiary and expanding its operations nationwide.

5. Public-Private Partnership Initiatives
Engagement in Public-Private Partnerships (PPPs) is seen as a strategic move to collaborate with government bodies and private players on joint ventures and long-term projects. These partnerships are expected to offer access to public contracts and infrastructure opportunities while fostering shared innovation and risk mitigation.

BUSINESS RISK FACTORS & CONCERNS

1. High Revenue Dependency on Top Customers
Over 50% of the company’s revenue in FY 2023, 2024, and 2025 was derived from the top 10 customers, with 81.29% in FY2025 alone. Loss of any key customer could significantly impact business performance, cash flow, and financial stability. The absence of long-term contracts and reliance on work orders increases this risk further.

2. Geographical Revenue Concentration
The majority of revenue is concentrated in Maharashtra, accounting for 96.55% in FY2025, 88% in FY2024, and 76% in FY2023. Such concentration heightens vulnerability to local economic shifts, political changes, or regional disruptions.

3. Dependency on Government and PSU Contracts
A significant portion of revenue is sourced from contracts with government departments and public sector undertakings. This exposes the company to risks such as budget cuts, policy shifts, procurement delays, and potential contract terminations. Additionally, evolving compliance norms and political influences could hinder future contract awards.

4. Raw Material Sourcing Concentration
A substantial share of raw material procurement is dependent on the State of Maharashtra. Regional issues like natural disasters, transport disruptions, policy changes, or regulatory hurdles could affect material availability and cost, leading to increased expenses and production delays.

Summary :
Mahendra Realtors & Infrastructure Ltd faces considerable business risks due to high customer and geographical revenue concentration, reliance on government contracts, and sourcing dependency on a single state. These factors collectively expose the company to financial, operational, and regulatory uncertainties that could impact long-term stability.