Markolines Pavement Technologies Limited — Call Transcript 2025

Nov 20, 2025

20[th] November, 2025

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To, BSE Limited P. J. Towers, Dalal Street, Fort, Mumbai – 400001. Kind attention: Department of Corporate Services. BSE Scrip ID: 543364, BSE Script Code: MARKOLINES	To, National Stock Exchange of India Limited Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra (E), Mumbai – 400051. Kind attention:Listing Dept. NSE Symbol: MARKOLINES

Sub: Transcript of Post Earnings Conference call with Analyst / Investors held on 18[th] November, 2025

Dear Sir / Madam,

Pursuant to Regulation 30 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, please find enclosed herewith the transcript of the Post Earnings Conference Call for unaudited financial results for quarter ended 30[th] September, 2025, held on 18[th] November, 2025 at 12:30 p.m. (IST).

The transcript will also be available on the Company's website at www.markolines.com

Kindly take the same on your record.

For Markolines Pavement Technologies Limited

SANJAY Digitally signed by SANJAY BHANUDAS PATIL BHANUDAS PATIL Date: 2025.11.20 17:50:04 +05'30'

Sanjay Patil Chairman & Managing Director DIN: 00229052

502, Wing-A, Shree Nand Dham, Sector 11, CBD Belapur, Navi Mumbai 400614 Maharashtra, India Corporate Office: 6th Floor, Wing-A, Shree Nand Dham, Sector 11, CBD Belapur, Navi Mumbai 400614 Maharashtra, India +91 22 6266 1111 Info@markolines.com www.markolines.com CIN: L99999MH2002PLC156371 (Formerly Markolines Traffic Controls Ltd.)

Markolines Pavement Technologies Q2 and H1 FY’26 Earnings Conference Call November 18, 2025

Moderator:

Good afternoon, ladies and gentlemen, and welcome to the Earnings Conference Call for Q2 and H1 FY '26 for Markolines Pavement Technologies Limited.

Today, on the call from the Management Team, we have with us Mr. Vijay Oswal, Founder and Chief Financial Officer. Mr. Vijay Oswal has over 3 decades of experience across infrastructure, finance, manufacturing and international business. He has been one of the guiding forces behind Markolines' growth through sharp business acumen and strategic planning.

At this point, all participant lines will be in the listen-only mode. Later we will conduct question and answer session. At that time, you may click on the Q&A tab to ask live questions. Please note that this conference is being recorded.

I would now like to request Mr. Vijay Oswal, Founder and Chief Financial Officer, to run us through the presentation for the quarter and half ended 30th September 2025 and the growth plan and vision for the coming year. Thank you, and over to you, sir.

Vijay Oswal:

Yes. Thank you, Yashashri, and thank you, everybody, for being here on this earnings call for Markolines. Let's begin with it. So, Markolines Pavement Technologies Limited, so as far as management goes, this year has been a year of sure activities, certain important things have happened, some milestones that we have achieved like right from shifting us from ourselves from SME to the Mainboard BSE. Subsequently, we also are listed now on NSE Mainboard. As informed earlier, we have already announced the merger for the Markolines Infra with Markolines Pavement.

As of now after the end of this Quarter 2, we are starting our season because for us, Q3 and Q4 are important. After the monsoon, we see a very good opportunity. We have got a lot of work at hand. We are also expecting a few more large-sized orders, which will be announced as soon as we have received them. Very soon, we will come up. And we are hoping for a good season in H2. And we, as management, we remain committed to delivering the performances, enhancing operational efficiencies and maintaining the financial discipline.

So, the order book, strong order book and our client relationship, which is established over 2.5 decades enable us to be leaders. And definitely, we will keep up to the expectations what we have been committed. Now about the Markolines, we were founded for those who are new, we were founded in 2002 with a single product of road marking that is how our name comes

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as Markolines. Subsequently, by adding various portfolios to our product line, we have become India's largest maintenance company in the highway sector.

We are the only company who has a support technology center where we have an R&D facility wherein practically every batch or every work that we conduct on site is being tested and monitored through a central lab at Mumbai. Then we are the only and first highway O&M company to be listed on BSE and SME with a pan-India presence. Now as our journey goes from 2002 when we started 2009, we started -- after the road marking, we started as an outsourcing agency in 2009. And thereafter, we have been growing ever then. And there is no looking back.

After starting in 2009, 2014 was the first place where we added maintenance services, then we added micro-surfacing. We as management, have always believed in the innovation and technology, we have given lots of first-time technologies to be used in the highway maintenance in India, such as micro-surfacing. We changed the complete market scenario by creating the name that micro-surfacing has. Then subsequently, we introduced the microsurfacing with fiber. Then we also introduced something called a CIPR Cold In Place Recycling. And then we started with FDR, then the rigid pavement, tunneling and all of that.

And today, we stand here being listed on both the exchanges, NSE as well as BSE. So, this company, Markolines is led by our Chairman and Managing Director, Mr. Sanjay Patil and myself. Both of us are basically engineers. We have been together for more than 3 decades into the business and in this business also for the last 24 years. Then we also have a capable leadership at the helm with technical and very qualified and experienced people from the industry like Mr. Praveen Panchal, Mr. Nagarkar and Anil Nikam, who is our CEO, who has joined this year.

As far as our business goes, our business is divided into 3 verticals: highway maintenance, specialized maintenance services and specialized construction services. Now just to quickly take you through the services. In highway maintenance, we do a lot of preventive maintenance activities like micro-surfacing, crack sealing, slurry sealing, et cetera. Then major maintenance and repairs, this is basically roads are susceptible because of the traffic to the wear and tear. So, they need to be maintained and overhauled every 5 to 7 years, wherein the complete -- a new layer of 40 mm of bituminous concrete has to be laid over the existing road to achieve or maintain the riding quality, that is rigid maintenance.

And rigid pavement is basically now as we are seeing that concrete roads are increasing, concrete roads are called as rigid pavements because they are not flexible like bituminous. And we also provide various services for maintenance of rigid pavement also. Then under the specialized maintenance activities, we do conduct two major activities like micro-surfacing and CIPR, Cold In Place Recycling.

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Micro-surfacing is basically a lamination of road, which prevents water to enter the road surface and avoids damages to the basic infrastructure of road or foundation. And CIPR is basically what you say, recycling of road wherein an equipment, train of equipment is passed over the bad road. It is excavated, mixed with the additives predefined. And it mixes again into the core equipment called as recycler. And then it is relaid and compacted and the complete new road is ready except the last course that is the top surfacing.

Then as specialized construction services, we have entered recently about 2, 3 years first is tunneling, where we are conducting the conventional methodologic two tunnels, one in Maharashtra and one in Jammu Kashmir. And second is soil stabilization because lot of greenfield roads are coming wherein the roads passing through the fields, the soil strata is very soft. And then with the conventional method earlier we use to dig deeper. But now with the newer technology, what we can do is simply treat the soil with chemicals, harden the surface so that just by a top layer hardening, we can lay the road over that, which gives a good foundation for the road. So, these are various services.

Now as far as our experience goes up till now, we have done more than 118 lakh square kilometers of micro-surfacing. We have done 5,000 plus kilometers of major maintenance. We as of today, we have about close to INR 400 crores of unexecuted order book and 1.37 lakh cubic meters of FDR and soil stabilization and about 200 kilometers of road recycling that is CIPR.

As far as strength, our strength goes that we are one of the established enterprise in road infrastructure in India, strong portfolio, skilled workforce and in-house capabilities to conduct every activity that we do. And excellent relationship puts us as a preferred vendor amongst our clients. And then we are the one who provide end-to-end comprehensive tailor-made solutions, which definitely gives us the edge over the competitors.

Now as far as if we were to really look at the weaknesses, then this basically, we are dependent on the workforce. Then we also are dependent some part of our portfolio comes from the government. Then because of the nature, cyclic operations and the short-term project life, we are basically high capital intensive. So, these are the weaknesses and opportunities. Now India is really growing in terms of infrastructure. We have the second largest infrastructure highway road infrastructure in the world. And we are also adding at a very fast pace -- even if you have to talk just national highway, we are adding about 35 kilometers per day of road to this.

And increasing road length will obviously require the major maintenance as well as the other maintenances, and that gives us definitely an opportunity. Then the privatization is happening. It is increasing. The government is looking at monetizing the road assets by giving the rights for a limited period to the various financial institutes who have come in. And then for them, having not capable of having the technical expertise, outsourcing becomes obvious, and that is where lies the opportunity for us.

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Now fluctuating prices of the raw materials because we are dependent on the fuel or bituminous product and the natural disasters. But generally, we take care of both the low cost the fluctuating prices are being addressed always through the escalation clauses in all our contracts. Now I have already briefed that we have already migrated to the BSE Mainboard as well as NSE Mainboard and merger is going on. We shall be submitting some papers once the since we have declared the updated papers will be submitted to Exchange in next 10 days' time.

Now as far as H1 goes, I will be definitely taking you through the details. We have given a good growth in terms of PAT. Earnings per share has also increased from -- to INR 1.70 from INR 0.98 that gives about 74% of growth. Then we have sufficient work at hand, unexecuted order book and also working on an active pipeline of INR 600-plus crores.

Now what are the advantages that we as a company have is basically working pan-India, we have an excellent regional and cultural understanding. We have the people who follow the strict SOPs and ethical practices, then we have a very experienced and integral team. Most of our top management people are the people who have been working with us for years together. And definitely, we are excellent in contingency and risk management. We are the company who are 100% compliance on the statutory requirements.

Then latest technologies, I have explained, and I will be explaining also at various times. And our approach is always customer-centric and that is the reason we are one of the preferred vendor. We have the highest focus on health, safety, security and environment. In fact, we have been acknowledged for following the good HSSE practices various times. In one of our projects in Rajasthan, I remember that practically every the BOT operator or the fund, they have sent delegates to our project when we were doing one project in Rajasthan to see that the kind of -- the safety we had followed, the safety regulations and norms. And we have always been introducing newest technologies and the innovations, which keeps definitely us ahead.

Now what are our key drivers is definitely, one is the market leadership, then a proven track record, experienced team. We have a robust business model. Definitely, we get the first-mover advantage because we have always been ahead in terms with the technology and innovation. And there are trends, which I explained are changing because of the new entrants of the financial institutes or funds into the India and the strong order book and growing potential. These are the real drivers for our growth and wherever we start.

Now what do we see as our future, is basically definitely the client and the stakeholder satisfaction is definitely the first important to us. Then expanding the service offerings and giving the revenue growth, leveraging the core expertise and definitely, we have proven the leadership in the infra O&M. As far as our order book goes, we have as I explained, INR 400 crores of unexecuted order book and an active pipeline of INR 600 crores.

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If you see the screen, this is practically a pan-India presence that we have, particularly except the Northeast, we are working across India. Every fund that has come to India or the top-notch BOT operators or the asset owners, you can see they are on our client list. We have been awarded for various -- our achievements and work

we have done by our clients various times. And now just let me take you through the industry overview. Basically, we have a national highway network, which is really growing second largest.

Even if you have to consider we have about close to 150,000 kilometers of the national highway. Then we are also growing the network every day. From 11 kilometers in 2014, today we are at about 34 kilometers per day building new highways. And as I explained, the investment monetization is happening by privatization of the projects. Just 2 days back, the latest TOT bundle was offered to IRB with about 8, 9 projects for INR 9,000-plus crores.

So, as far as the government is concerned, they have been really very pro, the infrastructural development. After the Modi regime, we have really added a lot of things and a focus to the infrastructure industry. Mr. Gadkari, who has always been very keen in terms of removing all difficulties and giving us the world-class infrastructure. And a lot of projects have been awarded by the government across the countries, including the expressways, the national highways and a lot of the coastal highways, the BRO is working in the hilly region across the border for developing the highways in the border region also. And there is a lot of huge infrastructure work that is going on. So, this is all about what we are and what we do.

Now let's look at the financials for Q2, INR 77.67 crores, which is about 39% higher than the last year of Q2. Then profitability has also increased by 27% approximately rise in EBITDA and 69% growth in terms of PAT. We have given INR 4.08 crores of PAT. And the EPS has also grown to INR 1.70. That is also a growth about 73%.

Now Q2 versus Q1, if I look both being into the monsoon zone, we have all done similar kind of performance with a slight definitely improvement in the Q2, a little bit of improvement, about 6%. The profitability also remains almost same with a slight growth of 7% over the last quarter. And the profitability also you can see.

Now H1 '26 versus H1 '25, we have to see. There is a good growth over last year because the people who have been learning from our experiences that we have our business development and execution team has done good planning wherein we could achieve this growth of 42% over last half and about close to 40% increase in EBITDA and 90% growth in terms of the PAT and also the EPS.

Now I have already explained the quarterly profit and loss statements, which are available on the net for you to look at the details, which will give us the synopsis what I have just now

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covered. And as we can see that we have given about 18% CAGR from '22 to '25 in terms of revenue, 25% CAGR growth in EBITDA, 26% growth in PBT, about 31% growth in terms of PAT. Balance sheet details are also there, which are available on this thing. Our shareholding pattern remains same as Q1, about 55% with the promoters and 45% with the investors and public.

So, this is all about the Q2 performances and definitely the performance that we have given with the good order in hand, we expect definitely a very good upside from these results also in the Q3 and Q4, which will be also Q3 will be a step-up from Q2. And as usual, Q4 will add and definitely help us to achieve what we have targeted a good growth over last year. As we have already said, we are expecting at least 30% growth over last year.

So, that's all about the financial performance, about the Q2 and H1 that we have recently closed. So, Yash, now we can start with the queries, Q&A, if we have from the people.

Moderator:

Certainly, sir. Ladies and gentlemen, we will now begin the question-and-answer session. To ask a question, please click on the Q&A tab on the panel and click on the Resend button.

The operator will announce your name when it is your turn to ask a question. Please accept the prompt on your screen and unmute your microphone while proceeding with your question. You may post text questions as well.

We will wait for a moment while the question queue assembles. We will take our first question from Rahul Kamdar from RK Consultancy. Please go ahead.

Rahul Kamdar:

So, basically, I just wanted to understand, sir, that since the numbers have been so strong and as explained by, sir, from FY '22 to FY '25, the CAGR growth has been so fantastic, okay? I wanted to understand that how we are looking at things from here, I mean, in terms of next 3 to 5 years because there are enough growth triggers, the support from the government is very strong. The order book pipeline is very strong. And the way the industry is going and way the infra has been seen, many of the analysts and investors believe that we are in the right space and infra companies are going to just boom from here.

So, I just wanted to understand your view from here on, specifically for Markolines as in how we can lead the industry? I mean, what's your view that how numbers will be better from here on, not only from Markolines' point of view, but how you will be able to go ahead than the industry?

Vijay Oswal:

Okay. So, thanks, Rahul. Nice question. The thing is that, see, there is a good growth in terms of infrastructure, there's a government focus. And as I've already explained that Markolines is one of the player who is always ready for offering anything and everything that clients require, keeping their only focus on the client satisfaction, now with the growth in the industry and

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secondly, we have also been very -- always ahead because of our 2 important things that is the innovation and technology addition in the maintenance space and because of that.

And secondly, we just don't go with the clients' requirement. General practice what we follow is very often in the large tenders or the inquiries, we send our technical team to the site before we put our bid. And at times there are various times that we have always proposed the revised solutions or the comprehensive solutions wherein by taking a different approach and which could save some money and latest technology and better performance for the user. This is what has always kept us ahead of the competition.

Now yesterday only I was going through the Cube Highways presentation, which they have made, who is one of our client and the largest portfolio holder in the industry. Now in their investor presentation also, they have mentioned that they have adopted a few new technologies. And I am really proud to say that we are the people who have helped them and suggested these technologies to them. This is what is definitely keeps us ahead in terms of industry.

Now as far as growth goes, I have also said in my earlier presentation that we are looking more than 100% growth in coming 3 years. And we will also try to surpass that looking at the potential and the various opportunities that we are working on. As far as the performance is concerned, since technically, that way, the highway maintenance industry, there is nothing that we do as a rocket science, except other than getting the new technologies. So, volume is the game, but the potential is also increasing and the first-mover and leadership advantage, we are always there. So, we will definitely try to fill in our commitment rather we will try and surpass our commitments. And as I have already said in earlier this thing that with this skill set also now we are looking at the allied infrastructure industries also wherein we could add some more growth to the company. This is how I look at the future.

Moderator:

Vijay Oswal:

Thank you. We will take one text question from Laxmikant Khanvilkar, an individual investor. The question is your company's EBITDA margin has declined. Why and what measures the company is taking to arrest the slide and possibly increasing going forward? What strategy the company has adopted or is devising to grow its operations? And have you issued any guidelines for the same?

Okay. So, Laxmikant Ji, the thing is that basically we being the service provider, our EBITDA margins, if you've seen the track record, they keep fluctuating because EBITDA margin varies because of the clients' requirement in terms of deploying the machinery. At various times, if the client ask for the specific machinery or the new equipments or the plants to be installed because of that, the cost, which is generally loaded to the client only. So, the EBITDA margins would vary because of the cost incurred in terms of depreciation as well as the interest.

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But by and large, the bottom line remains same. If you see our annual PBTs, they generally remain in the, say, a similar zone. That is how we work out because, by and large, we work with the client on a cost-plus basis model ensuring our returns. Now as far as increasing our bottom line, in my earlier presentation also, I have said that recently last 2, 3 years what we have added the new this thing to our portfolios like the specialized construction activities wherein we are definitely looking at increasing the bottom lines and which is visible also from our results, we are slowly increasing in terms of our net profitability.

Moderator: Thank you. The next question is from Yashwanti K., an individual investor. What is our order book position? And when can we see accounting of it?

Vijay Oswal:

So, basically, as of today, 30th of the month, so our current unexecuted order book as of 30th September, we had an unexecuted order book, which is to be executed over from next 1, 1.5 years is about INR 396 crores, and we are working on INR 600 crores of pipeline. Probably as short as this week, we will likely to come up with one major order disclosure, which we have already finalized and about to disclose. We are just expecting the formal award. So, this is the status of our order book, which is available on the official presentation on our website as well as BSE.

Moderator:

Thank you. There is a text question from Yashwanti K, an individual investor. What is our working capital cycle?

Vijay Oswal: So, working capital cycle keeps, by and large, though we say it is about 90 days, but on a few projects because of various things, generally, it lies about 90 to 120 days.

Moderator: Thank you. The next text question is from Pranay Shah from Careon Capital. What would have been growth if we had not witnessed extended monsoon. Did we have any impact?

Vijay Oswal: Yes, Pranay. As I said, this year, learning with the last years’ experience, we had already planned and there are 2 reasons where we have given better performance over last year. One, is basically we planned few orders where the work would not be affected through the monsoon because India is a very large country and very territorial.

And second is the specialized construction activities like tunneling, which generally are not affected during the monsoon much. So, both these have helped us to achieve the growth over last year's H1 and particularly the extended monsoon. In fact, you can see that last year, our first half was suffered. But in spite of having the extended monsoon over last year also, we have given a good growth. We keep planning to our best of our capacity so that the monsoon doesn't affect us.

Thank you. The next text question is from Shaurya Punyani from Arjav Partners. What kind of revenue growth we anticipate in FY '26 and FY '27. And what would drive such growth?

Moderator:

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Vijay Oswal: Okay. Shaurya, though I cannot say or specific numbers, but as I have already said that we are looking at good growth. We have been maintaining the same, this year, we are looking at about 30% growth over last year, which we definitely see that it has underwent with the kind of work that we have and the opportunities we are working ahead. And definitely, as I have said that if I have to achieve a real good growth over next 3 years, we will be keeping the same pace of growth over at least next 3 years. Moderator: Thank you. Next text question is from Yashwanti K., an individual investor. What is your solo bidding capacity? Vijay Oswal: So, bidding capacity, normally it is very complexly calculated with the tender requirements. Generally, the bidding capacity goes mostly is a major criteria in terms of the government tenders. Otherwise, the performances or the credentials, credibility matters more in terms of the private players, wherein we have a really large portfolio out of the order book. As of now, I can in solo bid capacity, we can bid up to about INR 500 crores to INR 700 crores of work. Moderator: Thank you. Vijay Oswal: Okay, I think no more questions. Moderator: We will wait for few seconds. Vijay Oswal: Okay. Moderator: There is one question from Yashwanti K. What is our employee strength? Vijay Oswal: So, in Markolines Pavement, we have about over 250 people working. And as far as the labor that is required, we hire them on a contract basis as we keep moving the basis from places to places. Moderator: As there are no further questions, I would now like to hand the conference over to Mr. Vijay Oswal, Founder and Chief Financial Officer, for closing comments. Over to you, sir. Vijay Oswal: Thank you, everybody, for, first of all, being on this call and hearing us about us, what we are doing, how we are doing. And definitely, as I have already promised, we will keep up to all our commitments. At the close of this H1 and the monsoon period, we are really looking forward to a very good H2. And definitely, we will keep coming to you at a regular frequency with the updates. And definitely, we will keep the commitments, looking forward to a good growth and good relationship with all of you. If anybody has missed out on to any questions, if you have any further queries or concerns, you can always get in touch with our IR or you can definitely contact us directly through our website, and we will be happy to answer your queries and

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address the concerns. Looking forward to your relationship in future, too. Thank you very much once again. Moderator: Thank you, sir. Ladies and gentlemen, on behalf of Markolines Pavement Technologies Limited, that concludes today's session. Thank you for your participation. You may now click on the exit meeting to disconnect. Thank you once again. Vijay Oswal: Thank you Yash. Moderator: My pleasure, sir. Vijay Oswal: Thank you.

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