Aegeus Technologies Ltd Management Discussions

OF FINANCIAL CONDITION AND RESULTS OF OPERATION

The following discussion is intended to convey management’s perspective on our financial condition and results of operations for the financial year ended March 31, 2026; March 31, 2025, and March 31, 2024. One should read the following discussion and analysis of our financial condition and results of operations in conjunction with our section titled "Financial Statements" and the chapter titled "Restated Financial Information" on page 257 of the Red Herring Prospectus. This discussion contains forward-looking statements and reflects our current views with respect to future events and our financial performance and involves numerous risks and uncertainties, including, but not limited to, those described in the section entitled "Risk Factors" on page 22 of this Red Herring Prospectus.

Actual results could differ materially from those contained in any forward-looking statements and for further details regarding forward-looking statements, kindly refer the chapter titled "Forward-Looking Statements" on page 20 of this Red Herring Prospectus. Unless otherwise stated, the financial information of our Company used in this section has been derived from the Restated Financial Information. Our financial year ends on March 31 of each year. Accordingly, unless otherwise stated, all references to a particular financial year are to the 12-month period ended March 31 of that year.

In this section, unless the context otherwise requires, any reference to "we", "us" or "our" refers to Aegeus Technologies Limited (Formerly known as Aegeus Technologies Private Limited), our Company. Unless otherwise indicated, financial information included herein are based on our Restated Financial Statements our Restated Consolidated Financial Statements for the Financial Years 2026, 2025 & 2024 included in this Red Herring Prospectus beginning on page 257 of this Red Herring Prospectus.

COMPANY OVERVIEW

Our Company was originally incorporated as a Private Limited Company with the name of "Aegeus Technologies Private Limited" under the Companies Act, 2013 vide certificate of incorporation dated April 20, 2017, issued by Registrar of Companies, Central Registration Centre, bearing CIN U74999KA2017PTC102441. Further, our Company was converted into a Public Limited Company in pursuance of a special resolution passed by the members of our Company at the Extra-Ordinary General Meeting held on May 27, 2024 and the name of our Company changed from "Aegeus Technologies Private Limited" to "Aegeus Technologies Limited" & Registrar of Companies, Central Processing Centre has issued a new certificate of incorporation consequent upon conversion dated August 08, 2024, bearing CIN U74999KA2017PLC102441.

BUSINESS OVERVIEW

Our Company designs and develops advanced robotic and intelligent automation solutions for the solar energy industry, with a focus on waterless robotic cleaning and O&M optimization. Headquartered in Bengaluru, we operate two integrated manufacturing facilities for the design, assembly, and testing of autonomous systems. Leveraging robotics, AI, ML, and IoT, we offer a comprehensive suite of solutions. Our flagship cleaning robots Unicorn and Shreem serve ground-mounted and rooftop plants. With patented technologies across multiple countries, we maintain strong technological leadership and deliver scalable, efficient, and sustainable solutions to major solar developers and O&M providers.

SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO THE LAST FINANCIAL YEAR

As per mutual discussion between the Board of the Company and BRLM, in the opinion of the Board of the Company there have not arisen any circumstances since the date of the last financial statements as disclosed in the Red Herring Prospectus and which materially and adversely affect or is likely to affect within the next twelve months except as follows:

The Board of Directors of our Company has approved and passed resolution on November 03,2025 to authorize the Board of Directors to raise the funds by way of Initial Public Offering.

The Shareholders of our Company have approved and passed resolution on November 08, 2025, in Extra ordinary General Meeting to authorize the Board of Directors to raise the funds by way of Initial Public Offering.

The Board of directors, in its meeting held on July 1, 2025, approved the redesignation of Mr. Suraj Vernekar’D as Managing Director w.e.f. July 1, 2025.

The Board of directors, in its meeting held on July 1, 2025, appointed Mr. Pratap Mishra as Chief Financial Officer of the Company w.e.f. July 1, 2025.

The Board of directors, in its meeting held on July 1, 2025, appointed Mr. Sandeep Singh and Mr. Sreenatha Madanayakanahalli Vivin Kumar w.e.f. July 1, 2025.

The Board of directors, in its meeting held on July 1, 2025, appointed Ms. Surbhi Sharma as Company Secretary & Compliance Officer of the Company w.e.f. July 1, 2025.

The Board of directors, in its meeting held on July 23, 2026, take note on cessation of Mr. Sreenatha Madanayakanahalli Vivin Kumar w.e.f. July 23, 2026.

The Board of directors, in its meeting held on July 23, 2026, appointed Mr. Anil Kapoor w.e.f. July 23, 2026, as Additional Independent Director.

SIGNIFICANT FACTORS AFFECTING OUR RESULTS OF OPERATIONS

Our business is subjected to various risks and uncertainties, including those discussed in the section titled "Risk Factor" beginning on page 22 of this Red Herring Prospectus. Our results of operations and financial conditions are affected by numerous factors including the following:

Changes, if any, in the regulations / regulatory framework / economic policies in India and / or in foreign countries, which affect national & international finance.

Company’s results of operations and financial performance;

Performance of Company’s competitors;

Significant developments in India‘s economic and fiscal policies;

Failure to adapt to the changing needs of industry and in particular government policies and regulations may adversely affect our business and financial condition;

Volatility in the Indian and global capital market.

MANAGAMENT’S DISCUSSION ON RESULT OF OPERATION

S. No. Particulars	For the year ended
	March 31, 2026	March 31, 2025	March 31, 2024
	Amount	As %age of Total Income	Amount	As %age of Total Income	Amount	As %age of Total Income
1 Revenue from operations	4,093.69	99.33%	2,189.01	99.96%	1,527.39	99.93%
II Other income	27.81	0.67%	0.97	0.04%	0.99	0.07%
III Total Income (I + II)	4,121.50	100.00%	2,189.98	100.00%	1,528.38	100.00%
IV Expenses
(a) Cost of material consumed	1,232.35	29.90%	958.19	43.75%	805.22	52.68%
(b) Changes in inventories of finished goods and traded goods	(86.42)	(2.10) %	(43.14)	(1.97) %	(5.24)	(0.34) %
(c)Employee benefits expenses	545.62	13.24%	336.18	15.35%	223.91	14.65%
(d) Finance costs	134.68	3.27%	99.94	4.56%	47.13	3.08%
(e)Depreciation and amortization expenses	35.86	0.87%	35.24	1.61%	31.45	2.06%
(f) Other expenses	1,717.87	41.68%	613.93	28.03%	333.96	21.85%
Total Expenses (IV)	3,579.97	86.86%	2000.34	91.34%	1,436.43	93.98%
V Restated Profit before tax (III - IV)	541.53	13.14%	189.64	8.66%	91.95	6.02%
VI Tax expense:
(a) Current tax	140.17	3.40%	55.52	2.54%	-	-
(b) Deferred tax	(8.54)	(0.21) %	(5.06)	(0.23) %	(0.92)	(0.06) %
(c) Earlier Year	8.13	0.20 %	-	-	-	-
Tax
Total Tax Expense	139.76	3.39%	50.46	2.30%	(0.92)	(0.06) %
VII Restated Profit for the year (V - VI)	401.77	9.75%	139.18	6.36%	92.87	6.08%
VIII Basic & Diluted EPS	6.57	-	2.40	-	1.68	-

Our Significant Accounting Policies

For Significant accounting policies please refer Significant Accounting Policies", under Chapter titled Financial Statements beginning on page 257 of the Red Herring Prospectus.

Overview of Income and Expenses

The following discussion on results of operations should be read in conjunction with the Restated Consolidated Financial Information for the year ended March 31, 2026, March 31, 2025 & March 31, 2024. Our revenue and expenses are reported in the following manner:

Total Income

Our total income comprises (i) revenue from operations; and (ii) other income

Revenue of operations

Revenue from operations comprises (i) sale of finished goods; (ii) sale of Services and (iii) other operating income, which consists of sale of scrap.

Other income

Other income primarily comprises (i) scrap sales; and (ii) miscellaneous income (iii) Freight cost based on INCO terms

Expenses

Our expenses primarily comprise (i) cost of materials consumed; (ii) employee benefits expenses; (iii) depreciation and amortisation expenses; (iv) finance costs; (v) changes in inventories of finished goods and (vii) other expenses.

Cost of materials consumed

Cost of materials consumed comprises costs from consumption of raw materials.

Change in inventories of finished goods and traded goods

Changes in inventories of finished goods and work in progress is based on calculating the difference between the closing stock and the opening stock.

Employee benefit expense

Employee benefit expense primarily comprises (i) salaries, wages and bonus; (ii) contribution to provident and other funds; (iii) gratuity expense; and (iv) staff welfare expenses.

Finance Cost

Finance costs primarily comprise (i) interest expense on term loans; (ii) interest on cash credit facility; (iii) interest on vehicle loans; (iv) interest others; and (v) other finance cost.

Depreciation and Amortization Expenses

Depreciation and amortisation expenses primarily comprise (i) depreciation on tangible assets; (ii) amortisation of intangible assets; and (iii) depreciation on right of use of assets

Other Expenses

Other expenses comprise expense on

(i) power and fuel;

(ii) Audit Fees

(iii) repair and maintenance;

(iv) rent;

(v) insurance;

(vi) rates and taxes;

(vii) Marketing Expenses;

(viii) travelling and conveyance;

(ix) legal and professional;

(x) Labour Charges;

(xi) business promotion expenses;

(xii) printing and stationery;

(xiii) donation;

(xiv) bad debts and sundry balances written off;

(xv) Telephone & Internet expenses;

(xvi) Courier expenses;

(xvii) office expenses;

(xviii) loss on exchange fluctuations (net); and

(xix) Recruitment expenses.

FISCAL YEAR ENDED MARCH 31, 2026, COMPARED WITH THE FISCAL YEAR ENDED MARCH 31, 2025.

Total Income

Total income increased by 88.20% from Rs. 2,189.98 lakhs in Fiscal 2025 to Rs. 4,121.50 lakhs in Fiscal 2026 primarily due to increase in both sales of goods by 18.92% and sale of services by 546.80%, which is explained under ‘Revenue from operations.

Revenue of operations

Revenue from operation increased by 87.01% from Rs. 2,189.01 lakhs in Fiscal 2025 to Rs. 4093.69 lakhs in Fiscal 2026 primarily due to following reasons:

Reason:

During FY26, the Company recorded product Revenue of Rs. 2,267.43 lakhs and service revenue of Rs. 1,826.26 lakhs, as against product sales of Rs. 1,906.65 lakhs and service revenue of Rs. 282.36 lakhs during FY25.

The increase in product revenue by 18.72% was primarily attributable to the execution of the Serentica order valued of Rs. 395 Lakhs. Further, the significant increase in service revenue was mainly driven by the Operations & Maintenance (O&M) services rendered to Alfanar, Saudi Arabia, amounting to Rs. 1628 Lakhs. Accordingly, the growth in both product and service revenues reflects the successful execution of key customer contracts during the year.

Other Income

The other income in Fiscal 2026 is Rs. 27.81 lakh as compared to Rs. 0.97 lakh in Fiscal 2025 which primarily consists of interest income and written off income.

Expenses

Total expenses

Total expenses increased by 77.39% from Rs. 2,000.34 lakhs in Fiscal 2025 to Rs. 3,579.97 lakhs in Fiscal 2026.

Reason: The Expenses increased during FY26 compared to FY25, primarily due to the significant growth in business operations. The Companys revenue increased by 87.01%, from 2,189.01 lakhs in FY25 to 4,093.69 crore in FY26, driven by improved order inflows and execution. Consequently, labour expenses increased to support the higher volume of operations, particularly for the execution of Alfanar O&M services rendered in Saudi Arabia.

Cost of Material Consumed

The cost of materials consumed in Fiscal 2026 was Rs. 1,232.35 lakhs as compared to Rs. 958.19 lakhs in Fiscal 2025 depicting an increase of Rs. 274.16 lakhs in Fiscal 2026 due to overall increase in volume and operations of the Company. However, cost of material consumed (incl. change in inventories) as a percentage of revenue is 27.99% in Fiscal 2026 as compared to 41.80% in Fiscal 2025 representing decrease in material cost by 13.81%

During FY26, the Company recorded product sales of Rs. 2,267.43 lakhs and service revenue of Rs. 1,826.26 lakhs, as compared to product sales of Rs. 1,906.65 lakhs and service revenue of Rs. 282.36 lakhs in FY25, reflecting significant growth in both business segments, particularly in service revenue.

Material consumption increased from Rs. 958.19 lakhs in FY25 to Rs. 1,232.35 lakhs in FY26, in line with the higher volume of product sales during the year.

Change in Inventories of Finished Goods

The change in inventories of finished goods is Rs. (86.42) lakhs in Fiscal 2026 as compared to Rs. (43.14) lakhs in Fiscal 2025.

Reason: Change in Inventory due to increase in closing stock of finished goods which stood at 88.03 in FY2025 & 160.54 in FY2026.

Employee benefit expense

Employee benefits expenses increased by 62.30% from Rs. 336.1 8lakhs in Fiscal 2025 to Rs. 545.62 lakhs in Fiscal 2026

Reason:

Employee benefits expenses increased by 62.30% from Rs. 336.18 lakhs in Fiscal 2025 to Rs. 545.62 lakhs in Fiscal 2026, primarily due to the addition of manpower in FY26 considering the growth of the business and the annual salary increments considered during Fiscal 2025 to Fiscal 2026.

Finance Cost

Finance costs increased by 34.76% from Rs. 99.94 lakhs in Fiscal 2025 to Rs.134.68 lakhs in Fiscal 2026.

Reason:

The finance costs increased in Fiscal 2026 primarily due to higher borrowings availed during the year to meet increased working capital requirements arising from the growth in business operations. The additional working capital facilities were utilized to support higher levels of inventory, trade receivables, and day-to-day operational requirements, which resulted in a corresponding increase in interest and other finance costs.

Depreciation and Amortization Expenses

Depreciation and amortisation expenses increased by 1.78% from Rs.35.24 lakhs in Fiscal 2025 to Rs. 35.86 lakhs in Fiscal 2026.

Reason

Depreciation and amortization expenses increased marginally in Fiscal 2026 primarily due to the depreciation charged on additions to property, plant and equipment and other depreciable assets during the year. The increase is in line with the Companys normal business operations and capital expenditure.

Other Expenses

Other expenses increased from Rs. 613.93 lakhs in Fiscal 2025 to Rs. 1,717.87 lakhs in Fiscal 2026 representing an increase of 179.82% primarily due to increase in operations, other expenses have also increased under following accounts and the reasons for the same stated below.

The increase in other expenses during FY26 is primarily attributable to the Labour costs incurred for the Operations & Maintenance (O&M) service order executed for Alfanar, Saudi Arabia. The total labour cost recognized for the Alfanar O&M services during FY26 amounted to Rs 1,281.79 lakhs, which constitutes the major component of the increase in other expenses. Freight charges have been borne by S&W as per the mutually agreed commercial terms and pricing for this major-margin order. No additional freight cost is to be charged to the customer."

Particulars	Fiscal 2026	Fiscal 2025	Increase
Labour costs	1,281.79	272.81	1,008.98
Freight charges	71.89	-	71.89

Restated Profit before Tax

Our restated profit before tax increased by 185.56% from Rs. 189.64 lakhs in Fiscal 2025 to Rs. 541.53 lakhs in Fiscal 2026.

Tax Expense

Total tax expense (current and deferred) stood at Rs. 131.63 lakhs in Fiscal 2026 whereas in Fiscal 2025 it was Rs. 50.46 lakhs primarily due to following.

Current tax expense increased from Rs. 55.52 lakhs in Fiscal 2025 to Rs. 140.17 lakhs in Fiscal 2026, primarily due to higher taxable income arising from improved business performance during Fiscal 2026. Current tax expense increased significantly by Rs. 84.65 lakhs (approximately 152.46%), from Rs. 55.52 lakhs in Fiscal 2025 to Rs. 140.17 lakhs in Fiscal 2026. The increase was primarily driven by higher profit before tax, resulting in increased taxable income. Consequently, the Companys current tax liability increased in line with the higher earnings under the applicable income tax provisions.

Deferred tax expense changed from Rs. (8.54) lakhs in Fiscal 2025 to Rs. (5.82) lakhs in Fiscal 2026.

Earlier year tax Rs. 8.13 Lakhs in FY 2026

Restated Profit after Tax

Restated Profit for the year increased by 188.66% from Rs. 139.18 lakhs in Fiscal 2025 to Rs. 401.77 lakhs in Fiscal 2026.

Justification for PAT:

Financial Performance Indicators Underlying the Growth in Restated Profit After Tax

Particulars	Fiscal 2026	Fiscal 2025
Revenue from Operation	4,093.69	2,189.01
COGS(including change in inv.)	1,145.93	915.05
COGS % of Revenue	27.99%	41.80%
Employee Benefit Expenses	13.33%	15.36%
PAT	401.77	139.18
PAT Margin	9.81%	6.36%

 

Description	Fiscal 2026	Fiscal 2025	%age change
Total income	4,121.50	2,189.98	87.01%
Total expenses	3,579.97	2,000.34	78.97%
Tax expense	139.76	50.46	176.98%
Profit after tax	401.77	139.18	188.66%

The Restated Profit After Tax (PAT) increased by 188.66%, from Rs. 139.18 lakhs in Fiscal 2025 to Rs. 401.77 lakhs in Fiscal 2026. This substantial increase was primarily attributable to the Companys improved operational and financial performance during Fiscal 2026, which resulted in a significant increase in total income while maintaining effective cost management.

The growth in revenue was primarily driven by a significant increase in service revenue, mainly on account of Operations & Maintenance (O&M) services rendered to Alfanar, Saudi Arabia, amounting to Rs. 1628 Lakhs during Fiscal 2026. These O&M services generated comparatively higher operating margins of approximately 13%, which favorably impacted the Companys overall profitability. Additionally, the higher contribution of this relatively high-margin service segment improved the Companys earnings profile, thereby resulting in a substantial increase in the Restated Profit After Tax for Fiscal 2026 as compared to Fiscal 2025.

The increase in profitability also reflects the Companys ability to enhance revenue from value-accretive service offerings while leveraging its existing operational capabilities, leading to improved operational efficiency and stronger overall financial performance during the year.

FISCAL YEAR ENDED MARCH 31, 2025, COMPARED WITH THE FISCAL YEAR ENDED MARCH 31, 2024.

Total Income

Total income increased by 43.29% from Rs. 1528.38 lakhs in Fiscal 2024 to Rs. 2189.98 lakhs in Fiscal 2025 primarily due to increase in both sales of goods by 31.50% and sale of services by 264.63%, which is explained under ‘Revenue from operations.

Revenue of operations

Total income increased by 43.32% from Rs. 1527.39 lakhs in Fiscal 2024 to Rs. 2189.01 lakhs in Fiscal 2025 primarily due to following reasons:

(Amount in Lakhs)

Particulars	FY 25	FY 24
Revenue from operations	2,189.01	1,527.39
% Growth	43.32%	172.18%

Total income increased by 43.32% from Rs. 1,527.39 lakhs in Fiscal 2024 to Rs. 2189.01 lakhs in Fiscal 2025 primarily due to following reasons:

(i) During Fiscal 2025, the Company has got substantial order from one of its new customers which has resulted into additional revenue of Rs. 211 lakhs in Fiscal 2025 as compared to Fiscal 2024.

(ii) Further, in Fiscal 2025, the Company has received substantial higher order volumes from one of its primary existing customers, which has resulted into increase in revenue by Rs. 620 lakhs as compared to Fiscal 2024.

Other Income

The other income in Fiscal 2025 is Rs.0.97 lakh as compared to Rs. 0.99 lakh in Fiscal 2024 which primarily consists of interest income.

Expenses

Total expenses

Total expenses increased by 39.26% from Rs. 1,436.43 lakhs in Fiscal 2024 to Rs. 2,000.34 lakhs in Fiscal 2025 due to overall increase in variable as well as fixed cost due to increase in operations and have been discussed below in detail.

Cost of Material Consumed

The cost of materials consumed in Fiscal 2025 was Rs. 958.19 lakhs as compared to Rs. 805.22 lakhs in Fiscal 2024 depicting an increase of Rs. 152.97 lakhs (19.00%) in Fiscal 2025 due to overall increase in volumes and operations of the Company. However, cost of material consumed (incl. change in inventories) as a percentage of revenue is 41.80% in Fiscal 2025 as compared to 52.38% in Fiscal 2024 representing decrease in material cost by 10.57% due to following reasons:

a) The average price of one of its major components which is battery has decreased from Rs. 7,600 per unit in

Fiscal 2024 to Rs. 5,400 per unit in Fiscal 2025 representing 28.94% reduction in price due to volume increase and global price reduction. b) The average price of one of its major components which is drive motor has decreased from Rs. 9,040 per unit in Fiscal 2024 to Rs. 5,800 per unit in Fiscal 2025 representing 35.84% reduction in price due to localization of product. c) The average price of one of its major components which is electronics has decreased from Rs. 9,800 per unit in Fiscal 2024 to Rs. 7,842 per unit in Fiscal 2025 representing 19.98% reduction in price due to volume increase and design change.

Change in Inventories of Finished Goods

The change in inventories of finished goods is Rs. (43.14) lakhs in Fiscal 2025 as compared to Rs. (5.24) lakhs in Fiscal 2024 due to increase in stock levels on account of growth in operations.

Employee benefit expense

Employee benefits expenses increased by 50.14% from Rs. 223.91 lakhs in Fiscal 2024 to Rs. 336.18 lakhs in Fiscal 2025 primarily due to senior management hires, increase in additional technical manpower and increasing salaries, wages and incentive. This increase in manpower was planned considering future growth.

Finance Cost

Finance costs increased by 112.06% from Rs. 47.13 lakhs in Fiscal 2024 to Rs. 99.94 lakhs in Fiscal 2025 primarily due to increase in interest cost on account of higher utilisation of working capital limits due to increase in operations.

Depreciation and Amortization Expenses

Depreciation and amortisation expenses increased by 12.06% from Rs.31.45 lakhs in Fiscal 2024 to Rs. 35.24 lakhs in Fiscal 2025 primarily due to increase in depreciation on tangible assets from Rs. 9.14 lakhs in Fiscal 2024 to Rs. 12.93 lakhs in Fiscal 2025 on account of new additions to the block of assets.

Other Expenses

Other expenses increased from Rs. 333.96 lakhs in Fiscal 2024 to Rs. 613.93 lakhs in Fiscal 2025 representing an increase of 83.83% primarily due to increase in operations, other expenses have also increased under following accounts.

Particulars	Fiscal 2025	Fiscal 2024	Increase
Marketing expense	56.06	13.61	42.44
Professional charges	71.07	23.04	48.03
Rent	37.10	11.71	25.40
Labour costs	272.81	210.62	62.19
Rates and taxes	23.53	2.22	21.31
Travelling expenses	103.47	41.15	62.31

Restated Profit before Tax

Our restated profit before tax increased by 106.23% from Rs. 91.95 lakhs in Fiscal 2024 to Rs. 189.64 lakhs in Fiscal 2025 primarily due to increase in gross margins attributable to reduced cost of material consumed, which is primarily on account of reduction in prices of certain key materials in Fiscal 2025 as compared to Fiscal 2024 as explained above.

Tax Expense

Total tax expense (current and deferred) stood at Rs. 50.46 lakhs in Fiscal 2025 whereas in Fiscal 2024 it was Rs. (0.92) lakhs primarily due to following.

Current tax expense increased from Rs. Nil lakhs in Fiscal 2024 to Rs. 55.52 lakhs in Fiscal 2025 primarily due to utilisation of brought forward losses in Fiscal 2024 resulting into Nil current tax expense in Fiscal 2024; however, there were no such brought forward losses available for utilisation in Fiscal 2025 and also there an increase in the total taxable income in Fiscal 2025.

Deferred tax expense decreased from Rs. (0.92) lakhs in Fiscal 2024 to Rs. (5.06) lakhs in Fiscal 2025.

Restated Profit after Tax

The increase in profit after tax from Rs. 92.87 lakhs in Fiscal 2024 to Rs. 139.18 lakhs in Fiscal 2025 is attributable to following:

(i) During Fiscal 2025, the sales of the Company have grown by Rs. 662.00 lakhs, which has resulted into generating additional contribution of Rs. 508.00 lakhs as compared to Fiscal 2024, which is primarily due to following:

The Company has executed additional export sales orders of Rs. 94.00 lakhs in Fiscal 2025 as compared to Fiscal 2024 wherein the average price realization is almost double as compared to domestic sales orders. Further, the Company was able to execute retrofit orders amounting to Rs. 186 lakhs which has higher price realization as compared to other orders.

The cost of goods sold as a %age of sales has gone down to 43.77% in Fiscal 2025 as compared to 52.72% in Fiscal 2024, which is primarily due to decrease in prices of batteries from Rs. 7,600 in Fiscal 2024 to Rs. 5,400 in Fiscal 2025 (almost 29% reduction) due to higher volumes and global price reductions. The reduction in cost of goods sold has resulted into savings of Rs. 195 lakhs as compared to Fiscal 2024.

(ii) The said increase in contribution is offset by increase in employee cost from Rs. 224.00 lakhs in Fiscal 2024 to Rs. 336.00 lakhs in Fiscal 2025 resulting into reduction in profit by Rs. 112 lakhs. Further, other expenses also increased by Rs. 280 lakhs from Rs. 334 lakhs in Fiscal 2024 to Rs. 614.00 lakhs in Fiscal 2025.

(Amount in Lakhs)

Particulars	FY 2024-25	FY 2023-24
Revenue from Operation	2,189.01	1,527.39
COGS	915.05	799.99
COGS % of Revenue	41.80%	52.38%
Employee Benefit Expenses	15.36%	14.66%
PAT	139.18	92.87
PAT Margin	6.36%	6.08%

INFORMATION REQUIRED AS PER ITEM (II) (C) (I) OF PART A OF SCHEDULE VI TO THE SEBI REGULATIONS:

1. Unusual or infrequent events or transactions

Except as described in this Red Herring Prospectus, during the periods under review there have been no transactions or events, which in our best judgment, would be considered unusual or infrequent.

2. Significant economic changes that materially affected or are likely to affect income from continuing operations.

Other than as described in the section titled Risk Factors beginning on 22 of this Red Herring Prospectus, to our knowledge there are no known significant economic changes that have or had or are expected to have a material adverse impact on revenues or income of our Company from continuing operations.

3. Known trends or uncertainties that have had or are expected to have a material adverse impact on sales, revenue or income from continuing operations.

Other than as described in this Red Herring Prospectus, particularly in the sections Risk Factors and Management’s Discussion and Analysis of Financial Condition and Results of Operations on page 22 and 259, respectively, to our knowledge, there are no known trends or uncertainties that are expected to have a material adverse impact on our revenues or income from continuing operations.

4. Income and Sales on account of major product/main activities

The income and sales of our Company on account of major activities derives from the design, assembly, and testing of autonomous systems. Leveraging robotics, AI, ML, and IoT.

5. Future changes in the relationship between costs and revenues, in case of events such as future increase in cost of service and freight & forwarding expenses that will cause a material change are known.

Our Company’s future costs and revenues can be indirectly impacted by an increase in the cost of services and freight & forwarding expenses.

6. Future relationship between Costs and Income

Our Company’s future costs and revenues will be determined by competition, demand/supply situation,interest rates quoted by banks & others.

7. The extent to which material increases in net sales or revenue are due to increased sales volume, introduction of new products or services or increased sales prices.

Increases in our revenues are by and large linked to increases in the volume of business.

8. Total turnover of each major industry segment in which the issuer company operates.

The Company operates in the Solar Industry. Relevant industry data, as available, has been included in the chapter titled "Our Industry" beginning on page 128 of this Red Herring Prospectus.

9. Status of any publicly announced new products or business segments.

Our Company has not announced any new services and segment / scheme, other than disclosure in this Red Herring Prospectus.

10. The extent to which the business is seasonal.

Our business is not seasonal in nature.

11. Competitive Conditions

We face competition from existing and potential competitors, which is common for any business. We have, over a period of time, developed certain competitive strengths which have been discussed in the section titled Our Business on page 183 of this Red Herring Prospectus.