Subject: Corporate Development Update – SPML Infra Ltd

Executive Summary SPML Infra Ltd has reported significant positive developments regarding its financial flexibility and legal claims. The company has secured a substantial Surety Bond facility and a favorable arbitration award, bolstering its liquidity position and bidding capacity for future infrastructure projects. Key Developments 1. Enhanced Bidding Capacity via Surety Bond (₹159 Crore) The company has successfully secured a Surety Bond limit of ₹159 crore from a reputable insurer registered with the IRDAI. Strategic Impact: This facility serves as a critical financial instrument, allowing SPML Infra to provide security for contract awards in lieu of traditional Bank Guarantees. Benefit: This move is expected to de-clutter the company’s banking limits, thereby enhancing liquidity and enabling more aggressive participation in upcoming government tenders without locking up significant working capital. 2. Arbitration Award Realization (₹21.61 Crore) In a favorable legal outcome, SPML Infra secured an arbitration award of ₹21.61 crore against the Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB) on December 31, 2025. Financial Implication: This award strengthens the company’s cash flow position. While subject to standard procedural terms, it represents the successful monetization of contingent assets and effective dispute resolution. 3. Operational Context & Recent Order Wins These developments complement the strong operational momentum observed in December 2025, where the company (in a JV with Shree Hari Infraprojects) bagged a ₹207.38 crore order under the Jal Jeevan Mission in Rajasthan. Project Scope: Execution of the Nonera Water Supply Project (Kota/Bundi), including 118 MLD water treatment plants and 10 years of O&M. Visibility: These wins highlight a robust order book and continued government focus on water infrastructure (JJM), a key growth driver for SPML.