Abhishek Integrations Ltd Management Discussions

Aviation

Industry Structure and Development

India is expected to overtake China and the United States to become the worlds third-largest air passenger market by 2030, according to the International AirTransport Association (IATA). The rising demand has also accelerated fleet expansion, with the number of airplanes projected to reach 1,100 by 2027.

Domestic passenger and international passenger traffic combined increased at a CAGR of 5.25% and 2.30%, respectively, in FY26 (April-January 2026). In FY26 (April-January 2026), airports in India pegged the domestic passenger traffic to be 281.78 million, a 1.9% YoY increase, and international passenger traffic to be 68.71 million, a 7.2% YoY increase, as compared to FY25 (April-January 2025).

Freight movement has also grown steadily. Between FY16 and FY25, total freight traffic increased at a CAGR of 2.80%, from 2.70 MMT to 3.71 MMT. In FY26 (April-January 2026), domestic freight traffic increased by 7.2% as compared to FY25 (April-January 2025). In FY26 (April-January 2026), domestic freight traffic stood at 1253 thousand MT, and international freight traffic was 2038 thousand MT.

Aircraft movement has risen in parallel with passenger and freight growth. From FY17 to FY25, aircraft movement grew at a CAGR of 3.85%, increasing from 2.05 million to 2.87 million. In FY24, the sector recorded robust capacity and demand growth, with Available Seat Kilometers (ASK) in domestic flights reaching 162,289 million km, while Revenue Passenger Kilometers (RPK) stood at 168,251 million km.

Opportunities end Threats.

Opportunities:

- Increasing Government focus on increasing reforms in the infrastructural and industrial sector;

- Expansion of key industry sector Airports, Ports etc.;

- Infrastructural development in the Country.

Threats:

- Economic and Political scenario in the country;

- Gradually becoming highly competitive due to entry of large number of organized players which are creating disturbance by offering services at unrealistic prices.

Segment-wise or product-wise performance

The Company has expanded its segment apart from existing developing, maintaining S operating of Airports to a Lighting & Electrical Products Trading and Coal Trading.

Outlook

The Company has continued to perform in line with the prevailing market environment and has maintained its growth momentum during the year under review. The Management remains optimistic about the Companys future prospects and expects to achieve sustained growth in the coming years, subject to favourable market conditions, stable economic policies, and a supportive regulatory environment. The Companys commitment to delivering value to its customers and stakeholders has strengthened with each passing year, and the continued trust, guidance, and support of its clients have played a vital role in enabling the Company to pursue its strategic objectives and successfully execute its business plans. The Company remains focused on enhancing its operational capabilities, improving efficiency, adopting best business practices, and effectively addressing emerging challenges. Through continuous innovation, prudent resource management, and a customer-centric approach, the Management is confident of achieving sustainable growth, improving profitability, and creating long-term value for all stakeholders.

Internal Control Systems and their adequacy

Your Company has established a robust and adequate system of internal controls designed to provide reasonable assurance regarding the safeguarding of assets, the accuracy and reliability of financial and operational information, compliance with applicable laws and regulations, and the efficient conduct of business activities. As part of its governance framework, appropriate checks and balances are in place to ensure that all transactions are duly authorized, accurately recorded, and reported in a timely manner, thereby promoting operational efficiency, transparency, and accountability.

Risks and Concerns

The Company has implemented a robust Risk Management Policy for the identification, assessment, monitoring, and mitigation of business risks. Risks are reviewed periodically to ensure effective management and appropriate controls. Based on the current assessment, the Management does not foresee any significant technological, operational, financial, regulatory, or environmental risks that are likely to materially impact the Companys operations in the near future.

Discussion on financial performance with respect to operational performance Revenue:

We have got thought leadership in our focused domains. The Companys growth considering the past years performance has increased. The Company is taking necessary steps for increasing profits from year to year. The Company recorded net sales Rs. 2824.63 lakhs as against Rs. 2635.83 lakhs in the previous year and thereby recording the Increase in the net sales by7.16% over previous year.

Net Profit:

During the year under review, the profit after tax stood at Rs. 80.24 lakhs as against profit after tax of Rs. 102.56 lakhs during the previous financial year and thereby recording the net Loss by 21.76% over previous year. Net profit of previous few years as under:

Human Resources

More than 700 employees are working in the Company. We continuously endeavor to improve and enhance the work environment for our employees. Competitive compensation package,

innovative and challenging environment to work, etc., are some of the steps taken by the Company for the welfare of its employees.

Cautionary Statement

Statements in the Management Discussion & Analysis Report describing the Companys expectations, opinion, and predictions may please be considered as "forward looking statements" only. Actual results could differ from those expressed or implied. Companys operations should be viewed in light of changes in market conditions, prices of raw materials, economic developments in the country and such other factors.

Key Financial Ratios

Explanations for significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in Key Financial Ratios:

Interest Coverage Ratio decreased by25.26% due to increase in Interest amount.