Advance Metering Technology Ltd Management Discussions

The global economy continued to experience moderate growth during 2025 amidst persistent geopolitical tensions, trade policy uncertainties, and financial market volatility. While economic activity remained resilient in several advanced economies, growth across regions was uneven due to inflationary pressures, supply chain disruptions, and evolving geopolitical developments.

India continued to demonstrate strong economic resilience and remained one of the fastest-growing major economies in the world. Supported by robust domestic consumption, sustained public capital expenditure, increasing private investments, and a stable financial sector, the Indian economy maintained its growth momentum despite global uncertainties. Indias real GDP grew by approximately 7.7% during FY 2025-26, supported by strong macroeconomic fundamentals, improved manufacturing activity, and continued expansion in the services sector.

Inflation moderated during the year owing to easing food prices, stable commodity prices, and prudent monetary policy measures adopted by the Reserve Bank of India (RBI). The financial system remained well-capitalized, and continued emphasis on infrastructure development, digitalization, renewable energy, and manufacturing is expected to support Indias medium-term growth prospects. The Governments continued focus on fiscal discipline, ease of doing business, and structural reforms is expected to further strengthen economic activity in the coming years.

INDUSTRY STRUCTURE AND DEVELOPMENT

Renewable Power Generation

The renewable power generation sector continued its strong growth trajectory during FY 2025-26, supported by favorable government policies, rising investments, technological advancements, and Indias commitment to achieving a cleaner energy mix. Renewable energy remains a key pillar of the countrys energy transition strategy, enhancing energy security while reducing carbon emissions.

During FY 2025-26, India achieved a record 55.29 GW addition in non-fossil fuel-based power capacity, taking the countrys total non-fossil installed capacity to 283.46 GW as on 31 March 2026, of which 274.68 GW comprises renewable energy sources. The renewable energy portfolio includes 150.26 GW of solar power, 56.09 GW of wind power, 51.41 GW of large hydro, 11.75 GW of bio-power, and 5.17 GW of small hydro power. India is now ranked as the third-largest renewable energy market globally in terms of installed renewable energy capacity. The Government continues to pursue its target of achieving 500 GW of non-fossil fuel-based installed power capacity by 2030, providing significant opportunities for sustained growth in the sector.

Energy Meters

The energy meter industry in India is undergoing a significant transformation, driven by the Governments focus on modernizing the power distribution sector through digitalization and smart grid initiatives. The increasing deployment of smart meters is expected to improve billing efficiency, reduce Aggregate Technical & Commercial (AT&C) losses, enhance consumer services, and strengthen the financial health of power distribution companies (DISCOMs).

Under the Revamped Distribution Sector Scheme (RDSS), smart metering works have been sanctioned for approximately 19.79 crore consumer meters, 52.53 lakh distribution transformer meters and 2.05 lakh feeder meters across 28 States and Union Territories. As on 31 December 2025, about 5.28 crore smart meters had already been installed across the country under various schemes, reflecting the rapid pace of implementation. The Government continues to accelerate the nationwide rollout of Advanced Metering Infrastructure (AMI), creating substantial opportunities for domestic energy meter manufacturers and technology providers.

The sector is further supported by policy initiatives such as the Make in India programme, production-linked manufacturing, and increasing investments in digital power infrastructure. Growing demand for smart meters, communication technologies, data analytics, and grid automation is expected to drive sustained growth in the industry. With Indias ongoing energy transition and focus on improving distribution efficiency, the outlook for the energy meter industry remains positive, offering significant long-term opportunities for manufacturers and solution providers.

OPPORTUNITIES AND THREATS

India is expected to be an emerging market for smart phones. Under the Smart Meter National Programme, the Government of India has aimed to replace 250 million smart meters. This is a major business opportunity. However, interoperability issues with traditional metering, billing and collection systems need to be sorted out.

India is encountering challenges such as outdated infrastructure, unreliable connectivity, low public awareness, complex procurement processes, and consumer apprehensions over billing changes and privacy.

INTERNAL CONTROL SYSTEM AND AUDIT

The Company has an adequate internal control system commensurate with the size, nature, and complexity of its operations. The internal control framework is designed to safeguard assets, ensure the reliability of financial reporting, maintain compliance with applicable laws and regulations, and promote operational efficiency.

The Internal Auditor periodically reviews the adequacy and effectiveness of the internal control systems, accounting procedures, operational processes, and compliance with established policies. Significant observations and recommendations are placed before the Audit Committee, which regularly reviews the effectiveness of internal controls and risk management processes.

FINANCIAL PERFORMANCE

The financial performance of the Company has been discussed in detail in the Directors Report forming part of this Annual Report.

HUMAN RESOURCES

Your Company firmly believes that its employees are its most valuable asset and continues to invest in building a competent, motivated, and performance-oriented workforce.

The Company remains committed to providing a safe, inclusive, and professional work environment that encourages continuous learning, employee engagement, leadership development, and skill enhancement. Various initiatives relating to training, performance management, succession planning, and employee welfare are undertaken on a continuous basis to improve organizational effectiveness.

Industrial relations remained cordial throughout the year, and the Company continues to maintain a healthy and collaborative work culture that supports sustainable business growth.

This version is aligned with the FY 2025-26 economic environments and follows the style generally adopted by listed companies in their Annual Reports while keeping all your original headings unchanged.

CAUTIONARY STATEMENT

The Management Discussion and Analysis describe companys projections, expectation; estimates are the forward looking statements within the meaning of securities laws and regulations and are subject to certain risks and uncertainties like regulatory changes, local, political and economic developments and other factors.