Aartech Solonics Ltd Management Discussions

Pursuant to the provisions of Regulation 34(2)(e) read with Schedule V of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Management Discussion and Analysis Report provides an overview of the industry environment, business performance, opportunities and challenges, financial and operational performance, risks, internal controls, human resources and the outlook of Aartech Solonics Limited (Aartech or the Company) for the financial year ended March 31, 2026.

The discussion and analysis herein should be read in conjunction with the financial statements and related notes forming part of the Annual Report. Certain statements contained in this section may constitute forward-looking statements and are subject to risks, uncertainties and assumptions. Actual results may differ materially from those expressed or implied in such statements.

A) INDUSTRY STRUCTURE AND DEVELOPMENTS

The electrical, power infrastructure and industrial technology sectors continue to remain important components of Indias infrastructure-led economic development. The Indian power ecosystem is undergoing a structural transformation driven by increasing electricity demand, expansion and modernisation of generation capacity, strengthening of transmission and distribution infrastructure, integration of renewable energy, digitalisation of substations and increasing emphasis on reliability, automation and efficient utilisation of existing electrical assets.

Aartech Solonics Limited (Aartech or the Company) is well positioned across the three principal segments of the electricity value chain, namely Generation, Transmission and Distribution. The Companys product portfolio and application capabilities enable it to participate not only in new infrastructure creation but also in the modernisation, upgradation, retrofitment and lifecycle support of existing electrical installations.

The Company believes that the industry is gradually moving from a predominantly equipment-supply-oriented model towards a more integrated model encompassing engineering, automation, digitalisation, protection and control, retrofitment, service, spares and lifecycle management.

Aartech is strategically positioned across these segments through its product and solution portfolio encompassing Fast Bus Transfer Systems, Control & Relay Panels, customized enclosures, protection and control solutions, retrofit and obsolescence management, engineering services and emerging energy-storage and specialised technology solutions.

1. Growth in Power Generation

Indias increasing electricity demand, industrialisation, urbanisation and infrastructure development continue to necessitate augmentation of power generation capacity.

The thermal power segment, in particular, continues to have an important role in supporting grid stability and meeting base-load requirements during the energy transition. A significant pipeline of coal-based thermal capacity is under construction, planning or development in various parts of the country.

Major projects and capacity additions, including projects such as:

? Patratu Super Thermal Power Project, Jharkhand - 2,400 MW;

? Buxar Thermal Power Plant, Bihar - 1,320 MW;

? Lara Super Thermal Power Project Stage-II, Chhattisgarh - 1,600 MW;

? Singrauli Super Thermal Power Station Stage-III, Uttar Pradesh - 1,600 MW;

? Nabinagar Stage-II, Bihar - 2,400 MW;

? Talcher Thermal Power Station Stage-III, Odisha - 1,320 MW; and

? North Karanpura Super Thermal Power Project, Jharkhand - 1,320 MW

reflect the continuing investment in generation infrastructure.

The expansion of generation capacity creates opportunities for specialised electrical systems, including Fast Bus Transfer Systems (FBT/BTS), Control and Relay Panels (CRPs), protection and control systems, automation solutions and associated engineering and commissioning services.

The Company therefore expects generation-related investments to remain an important demand driver for its core products.

2. Modernisation of Transmission Infrastructure

The transmission segment is witnessing increasing emphasis on reliability, automation, remote monitoring and digital control of substations.

Existing substations are increasingly being upgraded from conventional systems towards Substation Automation System (SAS) based architecture, while new substations are being designed with greater levels of digital integration.

This transition is creating opportunities for:

? SAS-compatible Control and Relay Panels;

? digital protection and control systems;

? communication-enabled protection systems;

? automation and monitoring solutions;

? retrofit and replacement of legacy protection systems;

? relay, card and module replacement;

? engineering modification and upgrades; and

? testing and commissioning services.

Aartechs experience in protection and control applications and its capability to develop customised solutions position the Company favourably to participate in this modernisation cycle.

3. Distribution Sector and SCADA Adoption

The distribution sector is also undergoing significant technological transformation.

Utilities are increasingly adopting SCADA-compatible protection and control systems, digital relays and automation solutions to improve visibility, reliability and response time across distribution networks.

This trend is particularly relevant to Aartechs CRP business, where the Company is developing and supplying solutions incorporating modern automation requirements.

The Companys ability to combine electrical engineering with automation and application-specific customisation provides an opportunity to participate in the continuing upgrade of distribution infrastructure.

4. Renewable Energy and Energy Transition

Indias energy transition continues to create significant long-term opportunities in solar, wind, hydro, hybrid renewable systems and energy storage.

The increasing share of intermittent renewable generation also creates a corresponding need for technologies that can support:

? grid stability;

? rapid power response;

? energy balancing;

? power quality;

? short-duration energy storage;

? backup power;

? hybrid power systems; and

? reliable operation of critical infrastructure.

Aartech, through its product development initiatives and its association with specialised energy-storage technologies, is exploring opportunities in ultracapacitors, flywheel-based systems, fuel-cell applications and other energy-storage solutions.

The Companys wholly owned subsidiary, Faradigm Ultracapacitors Private Limited (FUPL), is focused on developing indigenous capabilities in ultracapacitor-based energy storage and application-specific solutions.

5. Defence and Strategic Applications

The defence sector represents another specialised growth opportunity for the Company and its group entities.

The increasing emphasis on Atmanirbhar Bharat, indigenous defence technology and application-specific solutions is creating opportunities for domestic technology companies capable of developing customised systems for demanding operating environments.

The development of the Adaptive Alternate Power Module (AAPM), together with initiatives in energy storage and mobile power applications, represents an important component of the Companys technology development efforts.

The Company believes that successful qualification, field validation and commercial adoption of such products can create new business opportunities over the medium to long term. At the same time, management recognises that defence-oriented product development typically involves longer qualification and approval cycles and therefore requires sustained technical and commercial engagement.

6. Increasing Importance of Lifecycle Business

A significant structural opportunity is emerging from the installed base of electrical systems already operating across generation, transmission, distribution and industrial facilities.

Many legacy systems require:

? relay replacement;

? card/module replacement;

? obsolescence management;

? logic modification;

? communication upgrades;

? retrofitment;

? testing and commissioning;

? engineering modifications;

? critical spare parts; and

? technical support.

The Company believes that its installed customer base constitutes an important strategic business asset. Accordingly, management is increasingly focusing not only on new-system orders but also on retrofit, upgrade, service, spares and lifecycle support opportunities.

This approach is expected to improve customer retention, create recurring revenue opportunities and reduce dependence on only new-project order cycles.

7. Competitive Landscape

The electrical equipment and power infrastructure industry continues to remain competitive and price-sensitive.

The Company faces competition from established domestic manufacturers, specialised engineering companies, low-cost manufacturers and, in certain product categories, imported alternatives.

The competitive environment is particularly relevant in standardised products where procurement may involve competitive bidding or reverse-auction mechanisms.

Accordingly, the Company is increasingly focused on competing through:

? application engineering;

? product customization;

? technical reliability;

? execution capability;

? customer responsiveness;

? lifecycle support;

? retrofit capabilities;

? quality and testing; and

? differentiated technology.

Management believes that technical capability and application knowledge remain important differentiators in specialised products, even as price competition remains significant.

B) OPPORTUNITIES AND THREATS

The Companys growth strategy is based on strengthening its established product portfolio while selectively developing new businesses and technologies.

Opportunities:

1. BTS Business

BTS remains a specialised core business of the Company.

Future growth opportunities are expected to arise from both:

? New installations, and

? Lifecycle opportunities, including:

o retrofittment;

o upgrades;

o replacement;

o spares;

o service;

o testing;

o commissioning; and

o engineering modifications.

The Companys application expertise and customer-specific engineering capabilities provide an important competitive advantage in this segment.

2. Expansion of CRP Business

CRP has emerged as one of the Companys important business lines.

The increasing adoption of SAS, digital relays and SCADA-compatible systems provides a structural opportunity for Aartech to expand its CRP business across generation, transmission and distribution customers.

The Companys priorities include:

? expanding customer coverage;

? entering new geographies;

? strengthening repeat business;

? improving pre-tender customer engagement;

? standardising frequently executed designs;

? increasing engineering efficiency; and

? protecting margins through disciplined bidding.

The objective is not merely to increase CRP volumes but to achieve profitable and sustainable growth.

3. Installed Base, Retrofit and Obsolescence Management

The Company sees significant opportunity in systematically mapping its installed customer base.

Legacy systems often require replacement or modification because of technological obsolescence, discontinued components, changes in communication protocols or evolving protection requirements.

A structured installed-base programme can enable the Company to proactively identify:

? obsolete relays;

? discontinued cards and modules;

? critical spares;

? long-lead components;

? communication upgrades;

? retrofit requirements; and

? system modernisation opportunities.

This can create a recurring revenue stream with comparatively lower customer-acquisition costs because the Company already possesses customer and application knowledge.

4. Service and Spares

The Company is also seeking to strengthen its service business.

Services such as:

? testing;

? commissioning;

? troubleshooting;

? preventive maintenance support;

? modification;

? technical training;

? emergency support; and

? system upgrades

can deepen customer relationships and create opportunities for subsequent retrofit, spare and upgrade orders.

Management therefore views service not merely as a support function but as a business-development and customer-retention opportunity.

5. Energy Storage and New Technologies

The Company is actively pursuing new product development in areas such as:

? ultracapacitors;

? AAPM;

? flywheel systems;

? fuel-cell applications; and

? other energy-storage solutions.

These technologies have potential applications in defence, transportation, industrial automation, renewable energy and critical infrastructure.

However, management recognises that new technologies require customer validation, field acceptance, qualification and, in certain sectors, lengthy approval processes. Accordingly, these businesses are being developed with a long-term perspective.

6. Trading Business

The Trading business has demonstrated its ability to execute orders in India as well as overseas markets.

The Company intends to leverage its customer relationships, vendor network and industry knowledge to develop Trading as a complementary business.

The objective is to provide customers with a broader range of products and solutions while improving customer stickiness and creating additional revenue opportunities.

7. BestCase Business

BestCase is a specialised business based on customised enclosure solutions.

Customer-specific design capability, responsiveness and product knowledge remain key differentiators.

Management is taking initiatives aimed at increasing the scale of the business through additional market outreach, resources and digital channels.

8. FCL Business

The Fault Current Limiter (FCL) business represents a specialised technology opportunity.

The Company has experience as a supplier/system integrator in India and overseas markets. A focused strategy involving customer development, technology positioning and identification of suitable applications may enable the Company to expand this business over time.

Threats

1. Pricing Pressure

Competitive bidding and reverse-auction mechanisms can result in substantial pricing pressure.

The principal risk is that order-booking growth may not necessarily translate into profitable growth if projects are accepted without adequate consideration of:

? contribution margins;

? engineering effort;

? payment terms;

? execution complexity;

? service exposure;

? working-capital requirements; and

? commercial risk.

The Company is therefore strengthening its bid/no-bid discipline and minimum commercial threshold approach.

2. Raw Material and Imported Component Costs

The Companys products involve various electrical, electronic and engineering components.

Fluctuations in:

? copper;

? aluminium;

? electronic components;

? semiconductors;

? specialised protection components;

? engineering materials; and

? logistics costs

may affect product costs and margins.

The Company seeks to mitigate these risks through advance planning, alternate sourcing and supplier development.

3. Customer Payment and Working Capital Risk

Large infrastructure and PSU-related projects may involve extended payment cycles.

Consequently, order evaluation needs to consider not only order value and margin but also the customers payment history, contractual terms and working-capital requirements.

The Company is strengthening its collection monitoring and intends to involve the Sales function more actively in receivable management.

4. Skilled Manpower Dependency

The specialised nature of the Companys business requires technical expertise in:

? electrical engineering;

? protection and control;

? automation;

? embedded systems;

? application engineering;

? project execution; and

? service.

Availability and retention of suitably skilled personnel remain important to the Companys growth.

5. Technology Adoption and Market Acceptance

New products may require considerable time before achieving commercial scale.

The Company therefore recognises the risk associated with technology adoption, customer qualification and market acceptance of newly developed products.

C) SEGMENT-WISE / PRODUCT-WISE PERFORMANCE

FY 2025-26 witnessed continued strengthening across the Companys established business lines, with CRP and Fast Bus Transfer/BTS emerging as important contributors to growth.

The Company also continued to develop new business opportunities in Trading, energy storage, FCL, retrofitment, service and other specialised applications.

1. Fast Bus Transfer / Bus Transfer Systems

The BTS/FBT business continues to represent one of the Companys specialised core competencies.

The Companys application knowledge and ability to customise solutions for specific customer requirements remain important differentiators.

The Company intends to expand this business through a combination of:

? new projects;

? retrofitment;

? upgrades;

? replacement systems;

? spares;

? service;

? testing; and

? commissioning.

The lifecycle opportunity is particularly important because existing customers can provide repeat business beyond the initial equipment sale.

2. Control and Relay Panels (CRP)

CRP remained one of the principal growth drivers during the year.

The business benefited from increasing demand for modern protection and control systems and the transition towards SAS and SCADA-compatible infrastructure.

The Companys focus has been on providing technically differentiated solutions rather than competing solely on price.

The CRP business also provides opportunities for:

? new installations;

? upgrades;

? retrofitment;

? standardised panel solutions;

? digital protection systems; and

? lifecycle service.

Going forward, management intends to focus on geographic expansion, customer diversification, repeat business and margin protection.

3. Ultracapacitors (Faradigmr)

Faradigm Ultracapacitors Private Limited continues to develop ultracapacitor-based energy-storage solutions.

The technology has significant potential applications in defence and other sectors requiring high-power, rapid-charge and rapid-discharge capabilities.

The Companys development of AAPM in association with relevant technology and institutional partners represents an important step towards application-specific commercialisation.

However, management recognises that the commercialisation of specialised technology requires customer validation, field trials, qualification and budgetary adoption.

Accordingly, the Companys strategy is to diversify applications and progressively develop scalable manufacturing capabilities rather than depend on a single application.

4. BestCase - Customized Enclosures

BestCase continues to operate as a specialised customised-enclosure business.

The business is characterised by customer-specific requirements and therefore relies significantly on product knowledge, engineering capability, quality and delivery commitment.

Management is undertaking initiatives to increase market reach and strengthen the business through digital marketing, additional resources and new sales channels.

5. Fault Current Limiter (FCL)

The Fault Current Limiter business represents a specialised technology opportunity in the area of grid protection and power-quality management.

The Company has established technical capabilities and execution experience and intends to pursue the business selectively in domestic and international markets.

6. Trading Business

The Trading business has established a foundation through successful execution of orders in India and overseas markets.

Going forward, the Company intends to leverage its customer network, business partnerships and sourcing capabilities to expand this business while maintaining adequate commercial and working-capital discipline.

7. Retrofit, Obsolescence, Spares and Services

The Company considers lifecycle support of its installed base to be an important area of future growth.

Opportunities include:

? replacement of obsolete relays;

? card and module replacement;

? logic modification;

? communication upgrades;

? system upgrades;

? testing and commissioning;

? troubleshooting;

? technical support;

? customer training; and

? supply of critical spare parts.

A structured lifecycle approach can strengthen customer relationships while creating opportunities for recurring revenue.

8. Engineering and Application Development

Customer-specific engineering remains a key differentiator for the Company.

Management is also focusing on standardising frequently repeated engineering solutions into reusable modules and documentation. This is expected to reduce engineering cycle times, improve scalability and reduce dependency on individual technical resources.

D) FINANCIAL PERFORMANCE AND OPERATIONAL PERFORMANCE

Order booking provides an important indicator of future business visibility.

Based on the management sales dashboard, the Companys order booking during FY 2025-26 stood at approximately 45.09 crore, compared with approximately 31.29 crore in FY 2024-25 and 30.80 crore in FY 2023-24.

This represents an increase of approximately 44.1% over FY 2024-25, reflecting stronger business traction, order conversion and customer engagement during the year.

Particulars	FY 2023-24	FY 2024-25	FY 2025-26
Order Booking	30.80 Cr	31.29 Cr	45.09 Cr
YoY Growth	~4%	~4.1%	~44.1%

The improvement in order booking is encouraging; however, management recognises that order booking alone should not be regarded as the sole measure of business performance.

The Company is increasingly evaluating business opportunities based on:

? contribution margin;

? customer payment terms;

? working-capital requirements;

? engineering effort;

? execution complexity;

? service obligations;

? strategic customer value; and

? long-term business potential.

Accordingly, the Companys objective is to pursue profitable, cash-generating and sustainable growth, rather than revenue growth at any cost.

E) OUTLOOK

The outlook for FY 2026-27 remains positive, supported by Indias continuing investments in power infrastructure, generation, transmission, distribution, automation and industrial development.

The Company intends to pursue a steady and focused growth strategy while simultaneously developing new technologies and business verticals.

RISKS AND CONCERNS

The Companys business is exposed to various operational, commercial, financial, technological and market-related risks.

1. Competitive and Pricing Risk

The industry is highly competitive, particularly in standardised electrical products.

Reverse auctions and price-based tenders may exert pressure on margins.

Managements response is to strengthen bid/no-bid evaluation, establish minimum commercial thresholds and assess the total economic value of orders before acceptance.

2. Execution Risk

The Companys projects often involve customised engineering and coordinated procurement, manufacturing, testing, dispatch and site activities.

Delays in any stage can affect delivery schedules and profitability.

The Company therefore intends to strengthen project lifecycle monitoring from enquiry through collection.

3. Working Capital and Receivable Risk

Long customer payment cycles can increase working-capital requirements. Management is therefore focusing on:

? customer credit assessment;

? contractual payment terms;

? milestone-based billing;

? collection monitoring; and

? greater Sales involvement in receivable management.

4. Imported Component Risk

Availability, pricing and delivery timelines of imported electronic and specialised components may affect project execution.

The Company is addressing this through alternate vendors, advance planning and critical-spares management.

5. Technology Risk

The Company operates in rapidly evolving areas including automation, protection, energy storage and defence electronics.

Continuous investment in product development and application engineering is therefore necessary.

6. New Product Commercialisation Risk

New products may require significant time for testing, customer acceptance, qualification and commercial adoption.

The Company recognises that technological development does not automatically translate into immediate commercial revenues and therefore intends to adopt a phased and commercially disciplined approach.

7. Human Capital Risk

The specialised nature of the business creates dependence on technically skilled personnel.

Development of second-line resources, documentation and knowledge transfer will therefore remain important priorities.

G) INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Aartech maintains an internal control framework designed to support operational efficiency, financial reporting reliability, asset protection and compliance with applicable laws and regulations.

The Companys ISO 9001 certification provides a structured quality-management framework, while the Companys implementation of 6S practices supports workplace organisation, process discipline and continuous improvement.

The Companys Quality Control function plays an important role in ensuring that products undergo appropriate inspection and testing before dispatch to customers.

Key Elements of Internal Controls

1. Order Review

Orders are evaluated from technical, commercial and execution perspectives before being taken forward.

2. Procurement Controls

Procurement is monitored with reference to approved specifications, vendors, pricing and delivery requirements.

3. Production Controls

Production activities are undertaken in accordance with established processes and quality requirements.

4. Testing and Quality Assurance

Products undergo appropriate testing and inspection prior to delivery, with the objective of ensuring compliance with customer specifications.

5. Financial Controls

Financial processes include controls relating to:

? procurement;

? invoicing;

? receivables;

? payments;

? inventory;

? approvals; and

? financial reporting.

6. Audit Committee Oversight

The Audit Committee reviews internal control matters, audit observations and corrective actions, as applicable.

The Company continues to strengthen its processes through digitisation, dashboard-based monitoring and greater accountability across functions.

H) FINANCIAL PERFORMANCE VIS-A-VIS OPERATIONAL PERFORMANCE

FY 2025-26 witnessed continued growth in the Companys operations and financial performance.

Standalone revenue from operations increased to 4,017.82 lakh (40.18 crore) from 3,569.73 lakh (35.70 crore) in the previous year, representing growth of approximately 12.56%.

Profit Before Tax increased to 554.78 lakh (55.55 crore) from 144.98 lakh (1.45 crore) in the previous year.

Profit After Tax increased to 349.71 lakh (3.50 crore) from 204.37 lakh (2.04 crore).

Particulars	FY 2025-26	FY 2024-25	Change
Revenue from Operations	40.18 Cr	35.70 Cr	\u2191 12.56%
Profit Before Tax	5.55 Cr	1.45 Cr	Significant increase
Profit After Tax	3.50 Cr	2.04 Cr	\u2191 ~71.10%

The financial performance reflects the Companys continued focus on execution, product mix, customer development and operational efficiency.

The growth in revenue was supported by the Companys core business activities, particularly CRP and Fast Bus Transfer/BTS, along with continuing contribution from BestCase and other business initiatives.

The Companys order booking of approximately 45.09 crore during FY 2025-26 also provides evidence of stronger business traction and improved future revenue visibility.

However, management remains focused on ensuring that order-booking growth translates into adequate contribution margins, efficient working-capital utilisation and timely cash conversion.

The Companys strategic approach is therefore increasingly centered on profitable growth rather than order volume alone.

I) HUMAN RESOURCES / INDUSTRIAL RELATION

Human capital continues to be an important enabler of the Companys growth.

The specialised nature of Aartechs business requires professionals with expertise in electrical engineering, protection and control, automation, application engineering, project management, embedded systems, production, testing and technical service.

During FY 2025-26, the Company continued to focus on developing technical and functional capabilities required to support its growth plans.

The Company recognises that the next phase of growth will require strengthening of second-line technical and managerial resources, enabling senior personnel to focus increasingly on:

? strategic customers;

? complex technical applications;

? major negotiations;

? business development;

? new product development; and

? strategic partnerships.

The Company also intends to strengthen its technical team through recruitment of senior technical professionals and specialised application engineers.

The objective is not only to support revenue growth but also to strengthen product quality, engineering capability and the Companys overall brand positioning.

The Company continues to encourage a collaborative and professional working environment and believes that employee capability, commitment and institutional knowledge remain critical to sustainable growth.

J) SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS:

In accordance with the applicable disclosure requirements, the Company is required to provide details of significant changes in key financial ratios, generally being changes of 25% or more as compared with the immediately preceding financial year, together with explanations for such changes.

The final ratio figures should be inserted based on the audited financial statements and the methodology consistently followed by the Company.

Below is a summary of such significant changes for FY 2025-26, along with the business context behind them:

Ratio	FY 2026	FY 2025	% Change	Explanation
Current Ratio	2.72	2.79	\u2193 2.37%	Due to increase in Working Capital
Debt-Equity Ratio	0.16	0.17	\u2193 8.39%	Due to increase in Borrowings from Related Party

Debt Service Coverage Ratio	9.20	4.40	\u2191 109.19%	Due to increase in Borrowings from Related Party
Return on Equity Ratio	10.29	6.43	\u2191 60.21%	Due to increase in business activity of the company
Inventory Turnover Ratio	2.41	2.16	\u2191 11.86%	Due to increase in business activity of the company
Trade Receivables Turnover Ratio	3.63	4.67	\u2193 22.40%	Due to increase in business activity of the company
Trade Payables Turnover Ratio	4.47	4.24	\u2191 5.52%	Due to increase in business activity of the company
Net Capital Turnover Ratio	1.80	1.95	\u2193 7.66%	Due to increase in business activity of the company
Net Profit Ratio	8.70	5.73	\u2191 52.03%	Due to increase in business activity of the company
Return on Capital Employed	0.15	0.05	\u2191 191.14%	Due to increase in business activity of the company

The Companys financial performance during FY 2025-26 reflects an improvement in revenue and profitability.

The management continues to monitor working-capital efficiency, receivables, inventory levels, leverage and profitability as part of its financial governance framework.

Particular attention is being given to cash conversion, as higher order volumes and project execution can result in increased working-capital requirements.

The Company also intends to strengthen its commercial evaluation process so that customer payment terms and working-capital implications are considered before major orders are accepted.

K) CHANGE IN RETURN ON NET WORTH (RONW)

Metric	FY 2025-26	FY 2023-24	% Change
Return on Net Worth (RoNW)	9.84	6.30	\u2191 56.19%

The significant increase in RoNW in FY 2025-26 reflects the Companys enhanced ability to generate profits from its equity base. Key drivers include:

Stronger Profitability:

Even after accounting for the one-time impairment of 3.93 Cr, the Company posted a 41% growth in PAT, showcasing robust core profitability.

Operational Excellence:

Record topline growth, improved margin profile, and strategic cost optimization strengthened returns on invested capital.

Capital Efficiency: The RoNW improvement underscores disciplined capital deployment, with enhanced contribution from high-value areas such as:

? Ultracapacitors (Faradigmr)

? Adaptive Alternate Power Module (AAPM)

? Export-oriented BTS and CRPs

This metric validates the Companys profit-first growth strategy, prudent financial governance, and sharp focus on high-ROI business verticals.

L) MANAGEMENT OUTLOOK

The Company remains cautiously optimistic about the medium- to long-term outlook for its business.

Indias continuing investment in generation, transmission and distribution infrastructure, together with the modernisation of existing electrical systems, provides a favourable environment for the Companys core businesses.

At the same time, the Company recognises that growth in the electrical industry will not be uniform across all product categories. Increasing competition, price sensitivity, technological change and evolving procurement practices require a disciplined approach to business selection.

Accordingly, Aartechs strategy is to combine its established strengths in application engineering, customised electrical solutions and customer relationships with emerging opportunities in automation, digitalisation, energy storage, retrofitment, service and indigenous technology development.

The Company intends to build growth around a balanced portfolio comprising:

Core Products + New Products + Retrofit + Spares + Service + Trading + Exports.

Management believes that this diversified approach can provide greater resilience and improve the quality and sustainability of future revenues.

Conclusion

FY 2025-26 was a year of continued business expansion and strengthening financial performance for Aartech Solonics Limited.

The Company recorded revenue from operations of approximately 40.18 crore, compared with approximately 35.70 crore in the previous year, while Profit After Tax increased to approximately 3.50 crore.

The order-booking performance of approximately 45.09 crore during the year further reflects stronger business traction and provides a foundation for future revenue growth.

The Companys core businesses, particularly CRP and BTS/FBT, continue to provide the principal foundation for growth. At the same time, the Company is consciously developing additional opportunities through BestCase, Trading, retrofitment, obsolescence management, service, spares, FCL and energy-storage technologies.

The Companys approach going forward is based on a fundamental principle: growth must be profitable, cash-generative and sustainable.

The Company therefore intends to place greater emphasis on:

? quality of order booking;

? contribution margins;

? cash conversion;

? customer diversification;

? installed-base monetisation;

? service and recurring revenue;

? engineering standardisation;

? technology development;

? skilled manpower; and

? disciplined expansion into new markets.

With its established domain expertise, customer relationships, engineering capabilities and focus on indigenous technology development, Aartech Solonics Limited remains committed to building a stronger and more diversified business platform.

The Company looks forward to leveraging the opportunities arising from Indias infrastructure development, power sector modernisation, digitalisation and energy transition, while continuing to manage competitive, operational, financial and technological risks prudently.

The management remains committed to creating sustainable long-term value for shareholders and other stakeholders and to strengthening Aartechs position as an Indian technology-driven company providing specialised electrical, power and engineering solutions for critical infrastructure and emerging applications.

Place: Bhopal Dated: 05/09/2026

For and on behalf of the Board Aartech Solonics Limited

Sd/- Amit Anil Raje Chairman & Managing Director (DIN: 00282385) R/o 15, Silver Oak, Green Heights Gulmohar Colony Bhopal 462038 (M.P.)

Sd/- Arati Nath CEO & Director (DIN: 08741034) Bunglow No.3, Samarth Parisar, Bawadia Kalan, E-8 Extension, Near Orion School, Trilanga, Bhopal, 462039 (M.P.)