Advait Infratech Ltd Management Discussions

Economic Overview

Global Economy: In 2024, the global economy demonstrated cautious resilience amid ongoing geopolitical tensions, elevated interest rates and persistent inflationary pressures. While growth remained uneven across regions, emerging markets demonstrated relative strength driven by improved domestic demand and robust trade activity. Advanced economies faced moderate slowdowns as central banks maintained tight monetary policies to anchor inflation. Despite these challenges, global supply chains continued to stabilise, and energy markets showed signs of normalisation, supporting a gradual recovery in key sectors.

Indian Economy: FY25 marked another significant chapter in Indias economic narrative, defined by robust domestic demand, strategic policy interventions and a steadfast commitment to long-term growth. Despite a complex global landscape characterised by geopolitical shifts and evolving trade dynamics, the Indian economy demonstrated remarkable resilience. It continued its upward trajectory, cementing its position as a leading global growth engine. According to the National Statistics Office (NSO), Indias real Gross Domestic Product (GDP) is expected to grow by 6.3% in 2025. The primary driver of this expansion was a resurgence in private final consumption expenditure, fuelled by a noticeable pick-up in rural demand. This internal consumption story, coupled with continued investment activity, particularly in infrastructure, formed the bedrock of the years economic performance.

The services sector emerged as the primary engine, expanding by 7.2%, driven by robust performance in information technology, finance, and the hospitality sector. The industrial sector maintained a steady growth of 6.2%, supported by construction and utilities, while agriculture grew at 3.8%, bolstered by record Kharif production.

Indias net direct tax collections reached H21.26 lakh crore, a 13.13% increase compared to the previous year. This included H9.87 lakh crore from corporate tax, H11.88 lakh crore from non-corporate taxes (with personal income tax). The Goods & Services Tax (GST) regime continued to mature, contributing significantly to indirect tax revenues and reflecting the formalisation and expansion of the Indian economy.

Managing inflation remained a key focus throughout FY25. Retail headline inflation showed a welcome moderation, easing to 4.6% for the full and further declining to a six-year low of 3.16% in April 2025. This significant easing was largely attributable to cooling food prices, particularly vegetables and pulses, which had exerted upward pressure earlier in the year. In response to the evolving inflation trajectory and to support economic growth, the central bank implemented strategic repo rate cuts, bringing the rate down to 6.0% by April 2025.

Foreign Direct Investment (FDI) inflows experienced a healthy rebound, increasing by nearly 18% year-over-year in the first eight months of the fiscal year. This reflects continued global investor confidence in Indias growth story and its potential as a hub for manufacturing and innovation.

Looking ahead, the foundations laid in FY 2025 position India for continued strong growth. The IMF predicts a 6.3% GDP growth in 2026, maintaining a solid lead over global and regional peers.

The focus on domestic demand, infrastructure development, and a conducive policy environment is expected to sustain the momentum. The nations demographic dividend and ongoing digital transformation present significant opportunities for innovation and inclusive growth in the years to come. India remains committed to its trajectory towards becoming a developed economy, leveraging its inherent strengths and adapting to the evolving global economic landscape.

Industry Overview

Indias energy sector is poised at a critical juncture, with transformational shifts underway to align with national growth aspirations, environmental imperatives, and technological progress. Significant capital inflows, large-scale policy interventions, and a strategic pivot towards decarbonisation and energy security characterise the sector.

India possesses the third-largest power transmission network globally, comprising over 817,000 Circuit KM (220 kV & above) of transmission lines and more than 13.5 lakh MVA of transformation capacity. As the country advances its renewable energy agenda and electrification efforts, the demand for robust, flexible, and smart grid infrastructure continues to intensify.

The National Electricity Plan (2022-2032) projects the addition of approximately 27,000 ckm of transmission lines and 75,000 MVA of substation capacity annually, particularly to integrate the targeted 500 GW of non-fossil fuel-based capacity by 2030. This would necessitate an estimated investment exceeding H2.44 lakh crore in transmission infrastructure alone.

The power transmission sector serves as a critical link between power generation and consumption, playing a vital role in delivering electricity from generating stations to distribution networks and, ultimately, to end consumers.

Indias geographical diversity and uneven distribution of energy resources such as coal, hydro, and renewables underscore the strategic importance of a robust and expansive transmission network.

As of April 30, 2025, Indias transmission network comprises approximately 817,000 CKM (220 kV & above) of transmission lines and 13,50,953 MVA of transformation capacity. Notably, the inter-regional transmission capacity has surged by a remarkable 230%, reaching 1,18,740 MW since 2014. This growth has been instrumental in enhancing grid stability and ensuring seamless power flow across regions.

Coal reserves are predominantly concentrated in the central and eastern regions of the country.

At the same time, hydro energy resources are primarily located in the Himalayan range, spanning the northern and north-eastern states. In response to these spatial disparities, the transmission infrastructure has witnessed significant expansion over the years to facilitate the efficient evacuation of power from resource- rich areas to high-demand load centres via both intra-state and interstate transmission systems.

Despite these advancements,

FY25 presented certain challenges. According to the latest data from the Central Electricity Authority (CEA), only 8,830 ckm of new transmission lines were added during FY25, substantially below the planned target of 15,253 ckm and marking the lowest annual addition since FY15.

A significant portion of this (22% or 1,950 ckm) was commissioned in March 2025 alone, highlighting a year- end push to meet targets.

Industry stakeholders attribute the shortfall largely to Right of Way (RoW) constraints, with inadequate compensation to landowners emerging as a key bottleneck. Addressing this issue, the Union Ministry of Power revised land compensation norms in June 2024, a policy move expected to alleviate RoW challenges and expedite future transmission projects. Despite these headwinds, the sector is projected to exhibit a Compound Annual Growth Rate (CAGR) of approximately 7.5% through 2030, supported by substantial public investments and Public-Private Partnership (PPP) frameworks.

Groundbreaking initiatives, such as universal electrification, enhanced rural power availability, and the adoption of cutting-edge technologies, have firmly set India on the path to becoming a global energy leader.

These efforts, coupled with continued infrastructure development and a focus on energy conservation and consumer empowerment, are geared towards ensuring reliable, affordable, and clean energy for all. The strategic adjustments to land compensation rates are a positive indicator for accelerated transmission infrastructure development in the coming years.

TRANSMISSION LINE LENGTH AND SUBSTATION CAPACITY ADDITION BY 2031-32

Transmision line	Unit	Likely addition during 2022-27	Likely addition as of March 31, 2027	Likely addition during 2027-32	Likely addition as of March 31, 2032
HDVC (+-30 HDVC [+-320 kV/500 kV/800 kV bipole])	ckt km	80	19,455	15,432	34,887
765 kV	ckt km	36,558	87,581	27,138	114,719
400 kV	ckt km	34,618	228,596	20,989	249,585
230/220 kV	ckt km	43,431	235,771	13,228	248,999
Total - Transmisssion lines	ckt km	114,687	571,403	78,787	648,190
765 kV	MVA	343,500	6,00,700	319,500	920,200
400 kV	MVA	284,970	678,083	135,745	813,828
230/220 kV	MVA	147,860	568,497	42,610	611,107
Total - Substations	MVA	7,76,330	1,847,280	497,855	2,345,135
Bipole link capacity	MW	1,000	31,500	32,250	63,750
Back-to-back capacity	MW	-	3,000	-	3,000
Total - HVDC	MW	1,000	34,500	32,250	66,750

STRENGTHS, WEAKNESSES, OPPORTUNITIES, THREATS (SWOT) ANALYSIS

STRENGTHS

• Indias electricity demand is increasing rapidly, creating a large market for T&D services

• The government is actively promoting investments in the T&D sector through various policies and initiatives

• Indias large population and increasing industrialisation offer a vast market for T&D services

• Transmission/T&D will require $150-170 bn through 2030 as part of Indias 500 GW RE pushsupporting multi-year order book

• Power demand expected to grow ~5-6% p.a., implying sustained grid expansion and strengthening needs; large capex expected across the value chain

WEAKNESSES

• Significant losses in the transmission and distribution network lead to financial losses and inefficiencies

• Ageing infrastructure and insufficient grid infrastructure hinder optimal performance

• Inefficient distribution practices lead to power cuts and service disruptions

OPPORTUNITIES

• Regulatory reforms and policies are paving the way for modernisation and efficiency improvements

• Government and private investments are driving the expansion and modernisation of T&D infrastructure

• Modernisation of T&D systems, including smart grids, can improve efficiency and reliability

• HTLS/advanced conductor retrofits to increase capacity on existing corridors- mitigating RoW hurdles while adding near-term megawatt-miles

• Integration of renewable energy sources into the grid presents a significant opportunity for growth

THREATS

• Existing regulations and policies can hinder the smooth functioning of the T&D sector

• Increased competition from independent power producers can impact the market share of existing players

• The evolving power market, including deregulation and privatisation, can pose challenges

• The rapid evolution of technology in the power sector requires constant adaptation and innovation

NEW & RENEWABLE ENERGY

Indias renewable energy domain stands as a cornerstone of the nations energy transition strategy. As of March 2025, the country has achieved an installed renewable capacity of 220 GW, comprising 105 GW of solar energy and 50 GW of wind power. In alignment with its COP26 commitments, India has pledged to attain 500 GW of non-fossil capacity by 2030 and net-zero emissions by 2070.

Key growth catalysts include:

• The National Green Hydrogen Mission, with a H19,744 crore outlay and an annual production target of 5 million metric tonnes of green hydrogen by 2030

• Production-Linked Incentive (PLI) schemes promote domestic manufacturing of solar PV modules and electrolysers

• Waiver of interstate transmission charges for renewable projects commissioned by March 2026

• Large-scale tenders floated by SECI, GUVNL, and NTPC for solar, wind, and hybrid energy projects exceeding 40-50 GW per annum

There is a pressing need for decarbonisation because human activities, primarily the burning of fossil fuels, are releasing vast amounts of carbon dioxide and other greenhouse gases into the atmosphere, contributing to global warming and exacerbating climate change impacts, including extreme weather events, rising sea levels, and ecosystem disruption.

India has emerged as a global leader in the transition to new and renewable energy, demonstrating ambitious targets and significant progress. Driven by a rapidly growing economy and a commitment to address climate change, the nation has set a formidable goal of achieving 500 GW of non-fossil fuel-based energy capacity by 2030, alongside a net-zero emissions target by 2070. Strong government policies and initiatives back this commitment.

As of March 31,2025, Indias total installed renewable energy capacity reached a remarkable 220.10 GW, a significant leap from previous years. Solar energy has been the primary driver of this growth, exceeding 105 GW, while wind power has also crossed the 50 GW milestone. The country is not only adding new capacity at a record pace but also has a substantial pipeline of projects under implementation and tendered. Critical impediments persist, including land acquisition hurdles, evacuation bottlenecks, regulatory heterogeneity across states, dependency on imported modules and minerals and a dearth of skilled personnel in emerging domains such as hydrogen and storage.

With its abundant solar potential (over 5,000 TWh/year), well-articulated policy frameworks, and accelerating private and foreign investment inflows, India is positioned to emerge as a global leader in the clean energy domain, alongside nations such as China and the United States. The sector is projected to grow at a CAGR of 12-14%, led by grid-scale solar, battery storage, and green hydrogen initiatives. Indias goal of producing

5 MMT of green hydrogen annually by 2030 under the National Green Hydrogen Mission has unlocked a H70,000 crore opportunity in electrolysers and allied technologies. This initiative will not only significantly reduce Indias reliance on fossil fuel imports and cut CO 2 emissions but also foster the domestic manufacturing of electrolysers, create jobs, and attract substantial investments, ultimately bolstering Indias energy security and driving decarbonisation across hard-to-abate sectors such as steel, refining, and heavy transport.

OPPORTUNITIES IN NEW & RENEWABLE ENERGY

Climate Change Mitigation:

Renewable energy sources, such as solar, wind, hydro, geothermal, and biomass, produce little to no greenhouse gas emissions, directly addressing the urgent need to combat climate change and its associated environmental impacts. Energy Security & Independence:

By diversifying energy sources and reducing reliance on volatile fossil fuel markets, countries can enhance their energy security and reduce geopolitical risks associated with imported energy.

Economic Growth & Job Creation: The renewable energy sector is a rapidly expanding industry, creating numerous job opportunities in manufacturing, installation, operation, maintenance, research and development. This includes roles for engineers, technicians, project managers, consultants and more.

Technological Advancements & Cost Reduction: Continuous innovation in renewable energy technologies is leading to increased efficiency and significant cost reductions, making them increasingly competitive with traditional energy sources. This includes advancements in solar PV, wind turbine design and energy storage solutions.

Decentralised Energy Systems: Renewables can facilitate the development of decentralised energy systems, offering greater energy access and resilience, particularly in remote or underserved areas. This can reduce transmission losses and enhance grid stability.

Investment Opportunities:The sector attracts significant investment from both the public and private sectors, with green bonds and climate funds providing capital for projects. Governments are also offering incentives and supportive policies to encourage further investment. Innovation in Ancillary Technologies: The growth of renewables drives innovation in related fields such as advanced Battery Energy Storage Systems (BESS), smart grids and Electric Vehicle (EV) technologies.

CHALLENGES IN NEW & RENEWABLE ENERGY

In 2025, Indias renewable energy sector faces significant challenges. Dense populations and agricultural competition hinder land acquisition for solar and wind projects, delaying the addition of capacity toward the 500 GW target by 2030. Inadequate grid infrastructure struggles to integrate intermittent renewable energy, risking instability. Financially distressed discoms, with a large amount of debt, delay power purchase agreements, stalling many large projects. A heavy reliance on imported minerals, such as lithium, increases costs and supply chain risks. Inconsistent policies and complex tenders led to undersubscribed bids. Also, high financing costs deter investment. A shortage of skilled workers slows green hydrogen and storage projects, hampering innovation and scalability.

GOVERNMENT INITIATIVES IN NEW & RENEWABLE ENERGY

PM Surya Ghar Muft Bijli Yojana: Launched in February 2024, it aims to install rooftop solar panels in 100 million households by 2027, with 1.28 crore registrations and 14 lakh applications by July 2024. The budget allocation of H19,100 crore supports subsidies and implementation. National Green Hydrogen Mission: Approved in January 2023 with a H19,744 crore outlay (FY2023-30), it allocated $5.6 million per green hydrogen valley project in FY 2025 to promote production and export, targeting 5 million metric tons by 2030.

Production-Linked Incentive (PLI) Scheme: Tranche II allocated 39,600 MW for solar PV module manufacturing, with an investment of H19,500 crore, aiming to add 7,400 MW by October 2024 and 16,800 MW by April 2025, thereby creating 101,487 jobs.

Solar Park Scheme: Sanctioned 50 solar parks across 12 states with a cumulative capacity of ~38 GW by 2025-26, with SECI awarding contracts for 47 parks (25 GW+).

Bioenergy & CBG Initiatives: The PM JI- VAN Yojana (amended 2024) supports advanced bioethanol projects with H908 crore, while SATAT targets 750 CBG projects by 2028-29, aiming to produce 1 lakh cubic meters of biogas in FY25.

Sovereign Green Bonds: Issued H20,000 crore in FY25 to finance renewable projects, following a successful H16,000 crore issuance in 2023, supporting grid-scale solar, wind and green hydrogen.

Waiver of Interstate Transmission Charges: EExtended till March 2026 to reduce costs for renewable energy projects, supporting grid integration and 50 GW annual capacity auctions.

Company Overview

Advait Energy Transitions Limited (AETL), formerly Advait Infratech Limited, is a publicly listed energy infrastructure company headquartered in Ahmedabad, Gujarat. Since its inception in 2010, AETL has established a strong legacy in power transmission, substations and telecom systems, with a global footprint spanning over 45 countries and more than 450 executed projects.

The companys rebranding in November 2024 marks a strategic pivot toward energy transition, integrating traditional infrastructure expertise with cutting-edge solutions in renewable energy. AETLs core manufacturing includes stringing tools, ACS wires, OPGW cables, optical fibre cables and emergency restoration systems.

It also delivers turnkey EPC services across India, including live-line OPGW installations, underground cabling, and MVCC/HT AB cable projects.

In telecom, AETL offers end-to-end infrastructure solutions, from product deployment to liaison services.

Its renewable energy portfolio now features solar power systems, advanced storage technologies and green hydrogen solutions- including Alkaline and PEM electrolysers, hydrogen fuel cells, refuelling stations and storage systems.

AETLs transformation reflects its commitment to global decarbonisation, positioning it as a key enabler of clean, resilient and future-ready energy systems.

FINANCIAL PERFORMANCE

(BASED ON THE STANDALONE FINANCIALS)

Advait registered an excellent performance despite the prevailing uncertainty in the economy, owing to heightened geopolitical stress. Revenue from Operations increased from H20,743.95lakh in FY24 to H29,548.09 lakh in FY25. Alongside, EBITDA also increased from H3,708.86 lakh to H5,420.45 lakh over the same period. However, EBITDA margins increased- from 17.88% in FY24 to 18.34% in FY25. Net Profit improved appreciably from H2,133.46 lakh in FY24 to H3,149.37 lakh in FY25. Net Worth catapulted nearly threefold to H19,936.28 lakh as on March 31,2025, while debt remained largely at previous year levels. As a result, the Debt-Equity ratio dropped considerably.

Particulars	FY 2024-25	FY 2023-24	% Change
Inventory Turnover	10.55	7.45	41.61%
Current Ratio	2.33	1.41	65.72%
Debt-Equity Ratio	0.23	0.48	51.59%
Debtors Turnover	5.00	6.13	(18.42%)
Operating Profit Margin	27.72	28.16	(1.54%)
Return on Net Worth	15.80	28.65	(19.72%)
Interest Coverage Ratio	9.40	6.50	44.69%

INTERNAL CONTROL SYSTEM & ITS ADEQUACY

Internal control forms a fundamental part of the Companys governance framework, offering a solid structure that enables effective management while ensuring proper oversight and accountability. The Company has established a robust, enterprise-wide internal control system that is deeply embedded within its operational and strategic processes, designed to ensure operational discipline, regulatory adherence and risk- informed decision-making.

This system comprises a structured set of policies, Standard Operating Procedures (SOPs), approval hierarchies and control matrices tailored to the Companys diverse business verticals and geographic presence. It is built to facilitate the achievement of strategic objectives while safeguarding stakeholder interests.

Particular emphasis is placed on financial reporting controls, which are subject to rigorous evaluation through periodic internal audits, statutory audits and independent third-party reviews. These assessments are reviewed at the Audit Committee level, ensuring proactive corrective actions and continuous process improvement.

To enhance oversight and transparency, the Company has deployed integrated digital dashboards that monitor key metrics across procurement, financial MIS, project execution and human capital management. This digitised control environment fosters accountability, improves operational agility and supports high-quality, data-driven governance.

By continually aligning its internal controls with global best practices, the Company reinforces its commitment to ethical conduct, stakeholder trust and long-term value creation.

HUMAN RESOURCES

At Advait Energy Transitions Limited, our people are the cornerstone of our long-term vision and organisational resilience. The Companys peoplecentric approach, anchored in strong leadership and inclusive values, has been instrumental in ensuring business continuity, driving innovation and fostering a high- performance culture.

We are deeply committed to creating a workplace that is not only safe and compliant but also enriching and future-focused. Our work environment is intentionally designed to support the holistic well-being, career growth and aspirations of every team member.

Recognising that continuous learning is essential in an industry defined by rapid change, the Company has institutionalised robust training and development programmes across technical, managerial and digital competencies. These initiatives are designed to equip employees with the tools and confidence to excel in dynamic, cross-functional roles.

Our approach to talent acquisition and retention is both strategic and impact-oriented. We actively seek individuals who not only possess deep domain expertise but are also aligned with our long-term mission of advancing Indias clean energy and infrastructure transformation. We particularly encourage professionals with global exposure- whether in education or industry- to bring their skills back to India and contribute meaningfully to nation-building through our platforms.

We recognise the importance of fostering an inclusive environment that enables all individuals to thrive. The Company continues to evolve its policies and workplace practices to support working women, especially married women and mothers, in balancing their professional ambitions with personal responsibilities.

As we scale our footprint across renewable energy, green hydrogen and sustainable infrastructure, we remain guided by our core belief: that an empowered, diverse and purpose- driven workforce is the true engine of transformation.

As of March 2025, Advaits team comprises over 90+ employees, a testament to the Companys success in building and retaining a high- performing workforce.

RISK MANAGEMENT

In todays complex and rapidly evolving global landscape, businesses face a range of challenges driven by increasing inter-connectedness, strict regulatory requirements, environmental concerns, geopolitical uncertainties and swift technological advancements. These factors collectively impact organisational performance and longterm sustainability.

Advait proactively manages these challenges by continuously monitoring its risk profile and maintaining an up-to-date risk register. The Company provides regular updates on risk management activities to the Board of Directors and senior management, ensuring informed decision-making and effective oversight.

Risk Category	Description of Risk	Mitigation Strategy
Regulatory & Policy Risk	Changes in energy regulations, renewable energy targets, tariffs, or subsidies could impact project viability	Engaging proactively with the policymakers; continuously monitoring policy landscape; diversifying project portfolio across geographies and regulatory environments
Technology Risk	Rapid technological advancement or under-performance of new technologies (e.g., battery degradation, solar panel efficiency loss)	Invests in proven, bankable technologies; maintains strong vendor relationships
Financing & Investment Risk	Delays or shortfalls in securing project finance or high cost of capital can stall development	Maintaining a strong credit rating and investor relations; establishing credit limits for customers; pursuing blended finance models
Climate & Environmental Risk	Extreme weather events (e.g., cyclones, floods) may damage assets or reduce output	Site selection based on climate risk models; insurance coverage; climate- resilient infrastructure design
Market & Demand Risk	Fluctuations in demand for renewable energy or lower-than-expected uptake of green technologies	Diversified customer segments; offering energy-as-a-service models; investing in market development and education