Shrydus Industries Ltd Management Discussions

GLOBAL ECONOMIC OVERVIEW

The global economy remained resilient during FY 2025-26 despite a complex macroeconomic environment marked by geopolitical uncertainties, evolving monetary policies, uneven economic growth, commodity price volatility and continued technological transformation. Major economies continued to focus on balancing inflation management with economic growth, while businesses and investors adapted to changing trade patterns, supply-chain dynamics and evolving global financial conditions.

Equity Markets: Global equity markets remained supported by improving investor sentiment, technological advancement and expectations of monetary policy normalization in several major economies. Technology, artificial intelligence, digital infrastructure, healthcare, financial services, renewable energy and advanced manufacturing continued to attract significant investor interest. Developed markets remained important destinations for institutional capital, while emerging markets continued to offer attractive long-term growth opportunities.

Private Equity & Venture Capital: Global private equity and venture capital activity continued to focus on businesses with scalable business models, strong technology capabilities and long-term growth potential. Artificial intelligence, fintech, healthcare technology, electric mobility, renewable energy, climate technology and digital infrastructure remained among the sectors attracting strategic and financial investment.

Sustainable & ESG Investments: Sustainability continued to gain importance in investment decisions, with investors increasingly evaluating businesses on environmental, social and governance parameters. Investments in renewable energy, energy efficiency, clean technologies, sustainable infrastructure and climate-oriented solutions remained an important part of the global investment landscape.

Challenges: The global economy continued to face risks arising from geopolitical tensions, trade-related uncertainties, fluctuating commodity prices, elevated borrowing costs in certain markets and disruptions in global supply chains. Nevertheless, continued digitalisation, technological innovation, infrastructure development and the transition towards cleaner energy are expected to support global investment and economic activity over the medium to long term.

INDIAN ECONOMIC OVERVIEW

The Indian economy continued to demonstrate resilience during FY 2025-26, supported by strong domestic consumption, public and private investment, infrastructure development, increasing digitalisation and continued policy support. Structural reforms and Indias expanding manufacturing and services capabilities further strengthened its position as an important destination for domestic and international investment.

Equity & FDI Inflows: India continued to attract investment across infrastructure, manufacturing, financial services, information technology, healthcare, renewable energy, logistics and consumer-oriented sectors. Government initiatives relating to manufacturing, infrastructure development, digitalisation and ease of doing business continued to support investor confidence and encourage both domestic and foreign investment.

Start-up Ecosystem: Indias start-up ecosystem continued to mature, with increasing focus on sustainable business models, profitability, innovation and technology-led growth. Artificial intelligence, fintech, health tech, electric mobility, e-commerce, SaaS, deep technology and climate technology remained important areas of entrepreneurial and investor interest.

Capital Markets: Indian capital markets continued to witness significant participation from domestic institutional investors, foreign investors and retail investors. The increasing adoption of digital investment platforms, broader financial inclusion and greater investor awareness continued to support participation in the capital markets. Indias capital markets also remained an important source of funding for businesses seeking to expand and strengthen their operations.

Infrastructure & Green Energy: Infrastructure development remained a key driver of Indias economic growth. Continued investment in roads, railways, ports, logistics, urban infrastructure, renewable energy, electric mobility and digital infrastructure created significant opportunities for businesses across the value chain. Indias focus on energy security and transition towards cleaner sources of energy is expected to support sustained investment in renewable and allied sectors.

OUTLOOK

The outlook for the Indian economy remains positive, supported by strong domestic demand, infrastructure investment, favorable demographics, increasing digital adoption and continued structural reforms. Indias expanding manufacturing base, growing services sector and increasing integration with global supply chains are expected to create further opportunities for businesses and investors.

While risks relating to global economic conditions, geopolitical developments, commodity prices, interest rates, exchange-rate movements and international trade remain, Indias strong domestic economic fundamentals provide a favorable foundation for sustained growth.

Going forward, continued government expenditure on infrastructure, increasing private-sector investment, technological advancement, digital transformation and the transition towards sustainable and energy-efficient business models are expected to remain key drivers of economic activity. The Company remains committed to closely monitoring the evolving economic environment and leveraging emerging opportunities while maintaining a prudent approach towards risks and sustainable long-term growth.