Agni Green Power Ltd. Management Discussions

India has remained the world?s fastest-growing major economy in FY 2024 25, with renewable energy continuing to play a central role in its growth and sustainability agenda. Supported by a robust policy framework and international partnerships, the country has made remarkable progress in scaling up solar power capacity.

During the year, India consolidated its position as the third-largest producer of solar power globally. As per the Ministry of New & Renewable Energy (MNRE), the installed solar capacity crossed 108 GW by April 2025, compared to just over 21 GW in 2018. The pace of growth in this segment highlights India?s leadership in the global renewable energy transition.

The overall installed renewable energy capacity (excluding large hydro) is estimated to touch 170 GW by March 2025, up from around 136 GW in December 2023. Renewable energy, including hydro and nuclear, now contributes close to 49% of India?s total installed capacity of ~476 GW, reflecting a significant shift towards clean energy.

On the generation front, solar electricity output registered a strong growth of over 30% year-on-year, contributing nearly 10% of India?s total power generation during March April 2025. This surge was driven by capacity expansion, improved grid integration, and strong policy support.

The Government?s target of achieving 500 GW of installed capacity from non-fossil fuel sources by 2030 remains the key driver for future growth. In the Interim Budget 2024 25, the allocation for solar grid infrastructure was substantially increased to 8,500 crore, while the Pradhan Mantri Surya Ghar Muft Bijli Yojana, launched in 2024, aims to accelerate rooftop solar adoption across one crore households. With an untapped solar potential of more than 10,800 GW, India?s renewable energy sector continues to offer immense opportunities for expansion, innovation, and investment.

BUSINESS OVERVIEW

Agni Green Power Limited (“AGNI” or “the Company”) is engaged in the execution of turn-key Solar Photovoltaic (PV) Power Plant projects, including Design, Engineering, Supply, Installation & Commissioning (I&C), and Maintenance for both stand-alone and grid-connected PV systems, covering the entire project lifecycle from conceptualization to completion.

The Company was originally incorporated as Agni Power and Electronics Private Limited on August 25, 1995 under the Companies Act, 1956, with the Registrar of Companies, Kolkata, West Bengal. Subsequently, the name was changed to Agni Green Power Private Limited vide a fresh Certificate of Incorporation dated March 4, 2022. Thereafter, the Company was converted into a Public Limited Company and renamed Agni Green Power Limited with effect from April 1, 2022.

AGNI is an integrated solar energy solutions provider offering Engineering, Procurement and Construction (EPC) services as well as Operations & Maintenance (O&M) services. In addition, the Company manufactures a wide range of solar energy products including Solar Power Conditioning Units, Solar Inverters (Hybrid & Grid Connected), Solar Maximum Power Point

Tracking (MPPT) Chargers, Remote Monitoring & Diagnostic Systems, Solar Photovoltaic Junction Boxes, Control Panels, Digital DC Energy Meters, Solar Adapters, and Solar Pump Controllers, among others.

We are an integrated solar energy solutions provider offering engineering, procurement and construction (“EPC”) services, and operations and maintenance (“O&M”) services to our customers. We also manufacture Solar Power Conditioning Unit, Solar Inverter (Hybrid & Grid Connected), Solar Maximum Power Point Tracking (MPPT) Charger, Remote Monitoring and Diagnostic System, Solar Photovoltaic Junction Box, Control Panel, Digital DC Energy Meter, Solar Adapter and Solar Pump Controller etc.

During the financial year 2024 25, Agni Green Power Limited has continued to strengthen its leadership position in the renewable energy sector by executing prestigious projects, diversifying into new business domains, and demonstrating consistent financial growth. The Company successfully secured and executed multiple high-value contracts across different regions, thereby expanding its operational footprint and reinforcing its reputation as a trusted solar EPC and O&M solutions provider.

Notably, in October 2024, AGNI received a significant work order from the Selco Foundation for the supply, installation, commissioning, and maintenance of off-grid SPV systems across 108 health centres in Mizoram, valued at 4.1 crore. This was followed by a 2.13 crore contract under the WBREDA scheme for the installation of 38 solar power plants of 10 kW each in schools and government buildings across West Bengal. In January 2025, the Company was awarded a 2.38 crore ground-mounted solar project of 410 kW capacity by BRBNMPL Salboni, covering design, installation, commissioning, and training. Further consolidating its credentials, in May 2025 AGNI bagged a landmark 4.71 crore rooftop solar project of 1 MW capacity from Power Grid Corporation of India Ltd at NIT Durgapur. Collectively, these projects not only strengthened AGNI?s presence in the Eastern and North-Eastern regions of India but also highlighted its ability to deliver reliable and sustainable solutions to diverse clients ranging from healthcare institutions to educational campuses and government establishments.

We have also expanded our footprints through four branch offices in Chhattisgarh, Assam, Mizoram and Tripura. Our key customers mainly include reputed Government organizations.

AGNI is committed to delivering high-quality, professional, and cost-effective solar solutions. The Company is supported by a team of highly skilled engineers and professionals with proven expertise in handling projects of diverse scale and complexity. With its strong technical capabilities and extensive execution experience, AGNI ensures the highest standards of reliability, performance, and customer satisfaction.

The leadership team of AGNI, comprising the promoters with decades of experience in the solar energy sector, continues to drive innovation, efficiency, and sustainable growth. The Company operates with a professionally managed team possessing vast techno-commercial knowledge, enabling AGNI to consistently execute projects with excellence and maintain its position as a trusted and acclaimed enterprise in the renewable energy industry.

By leveraging its integrated strengths turnkey project execution, in-house manufacturing capabilities, certified quality systems (ISO 9001, ISO 14001, ISO 45001), and strong MNRE accreditation AGNI has not only maintained but enhanced its competitive edge during the year under review. The combination of prestigious project wins, diversification into emerging energy verticals, and robust financial outcomes makes FY 2024 25 a year of strategic importance and sets the foundation for continued growth in the years to come.

OUR STRENGTHS

Agni brings over 40+ years of experience in the solar energy sector, positioning it as a seasoned and trusted EPC (Engineering, Procurement, and Construction) and O&M player in India?s solar landscape. The company?s leadership includes founders with decades of hands-on technical and R&D experience, including Prof. Hiranmay Saha (over 45 years in solar R&D) and Dr. Kanak Mukhopadhyay (pioneer entrepreneur with 40+ years in the solar industry). Agni offers a full-stack offering, covering design, procurement, engineering, construction, installation, commissioning, operations, and maintenance for both off-grid and grid-connected PV systems. It is an ISO-certified company, indicating high standards in quality, environment, and occupational health & safety Agni maintains an in-house R&D facility, focused on developing indigenous solar products tailored to India?s market needs One among very few listed companies in Renewable Energy Industry. Agni has professional team of engineers and staff offers strong technical execution capabilities across project design, commissioning, and service. Working experience in harsh climate condition including hilly regions and coastal areas.

As a leading supplier of solar installations and ecological energy technology solutions, Agni Green Power Limited is committed to delivering integrated and sustainable SPV solutions for private, commercial, and public sector applications. Our team of nearly 80 dedicated professionals works relentlessly to ensure clean energy access and reliable performance across every project we undertake. Over the years, our product and service portfolio has evolved to cover a wide spectrum ranging from household and institutional solar lighting systems to large-scale, megawatt-level solar power plants.

Our SPV products and solutions are designed with a strong emphasis on quality, reliability, and long-term performance. We take pride in our highly skilled workforce, which comprises trained engineers, specialized technicians, and certified installers who ensure that every project meets the highest industry standards. By combining premium components sourced from global leaders with those designed and manufactured in-house at our modern, fully-equipped factory, we are able to guarantee solutions that are both efficient and durable. Our approach is based on precise planning, careful selection of materials, and timely execution values that have become the guiding mantra of AGNI.

A cornerstone of our success is our dedicated Research & Development (R&D) facility, which enables us to innovate, indigenize, and continuously improve our product portfolio. This facility allows us to design customized solutions tailored to specific customer requirements while reducing dependency on imported technologies. By keeping full control over product design, development, and features, AGNI not only ensures superior quality but also aligns with the Government of India?s vision of “Atmanirbhar Bharat” (self-reliant India) in the renewable energy sector.

Driven by our commitment to sustainability and innovation, AGNI continues to play a vital role in India?s transition towards clean and green energy solutions, empowering communities and contributing to the nation?s renewable energy goals.

FACTORS AFFECTING OUR RESULTS OF OPERATION

Agni Green Power operates in a sector highly reliant on Central and state government incentives and support. If these subsidies are reduced, revoked, or not renewed, or if regulations become more burdensome, it could significantly impact their business operations and financial health. As an EPC provider, the company faces stiff competition from peers some of whom possess greater financial strength, marketing reach, and deeper backward integration that allow for lower cost structures and better margins. High working capital requirement. Limited pricing power due to fragmentation in the industry.

Our ability to identify suitable projects and execute them in timely and cost effective manner.

OPPORTUNITIES

Potential to provide other value based services.

India?s ambitious 500 GW non-fossil-energy target by 2030, with solar at the core, opens vast opportunities across utility-scale, rooftop, and off-grid projects. Key schemes such as PM-KUSUM, PM Surya Ghar Muft Bijli Yojana, and Production-Linked Incentives (PLI) offer subsidies, capital support, and accelerated incentives for solar pumps, rooftop systems, and domestic manufacturing. Rooftop solar continues to boom fuelled by residential and commercial demand, net metering policies, and subsidies. Mumbai alone could tap 1.72 GW of rooftop potential. Advanced tech AI-driven monitoring, IoT-enabled energy management, smart inverters, bifacial modules, and AI predictive analytics are improving efficiency and opening doors for premium, differentiated offerings.

Increasing private investments, both domestic and international, are flowing into solar infrastructure,

THREATS & CHALLENGES

Low entry barriers in Solar segment creates severe competition. Competitive bidding in government tenders often drives tariffs down. High debtor days could strain liquidity.

Rising interest rates or tighter bank lending norms could further limit access to working capital and project financing.

FINANCIAL AND OPERATIONAL HIGHLIGHTS

Your Company?s total Profit after tax for the financial year 2024-25 is Rs. 62.67 lakhs as compared to a profit for the previous financial year being Rs. 38.46 lakhs.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Pursuant to the requirements of Section 134(3)(q) of the Companies Act, 2013 read with Rule 8(5)(viii) of the Companies (Accounts) Rules, 2014, the Board of Directors confirms that the Company has in place adequate internal financial controls commensurate with the size, scale, and nature of its business operations.

These internal financial controls are designed to provide reasonable assurance with regard to the reliability of financial reporting, ensuring the orderly and efficient conduct of business, adherence to applicable laws, safeguarding of assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records, and the timely preparation of financial and operational information.

The internal financial controls have been formally laid down through policies, procedures, and authorization manuals and are reviewed on a periodic basis by the management and the Board. The Audit Committee also oversees the adequacy and effectiveness of such controls through regular internal audit reviews and discussions with statutory auditors. Internal control also try to reduce debtor days, provides a more relaxed business financing option, and to improve the overall quality of the project by ensuring better financial discipline and accountability

During the financial year under review, the internal financial controls were tested and evaluated and were found to be adequate and effective. No reportable material weakness was observed in the design or operation of such controls.

RISKS AND CONCERNS

Every business involves a delicate balance between risk and return, and Agni Green Power Limited “AGNI” remains committed to maximizing shareholder value while managing risks diligently. AGNI?s management continues to drive cost efficiency through detailed market studies and expert engagement. Senior leadership regularly identifies and monitors operational, financial, and market risks, evolving processes and systems to mitigate them proactively.

In the reporting financial year AGNI has acknowledged several key risk factors affecting its operations, including insufficient market reach, dependence on suppliers, high working capital requirements, limited pricing power, and intense competition, which may constrain margins in the future.

Simultaneously, the Company recognizes emerging opportunities such as expanding into new geographical areas or value-added services and leveraging the government?s focus on to boost demand.

On governance and oversight, AGNI ensures that internal controls including financial and operational protocols are routinely monitored and tested by senior management and the Board, with the Audit Committee providing oversight. No material weaknesses in the design or operation of these controls were identified during the year.

FINANCIAL PERFORMANCE & OPERATIONAL PERFORMANCE:

CAPITAL STRUCTURE:

The Paid-up Share Capital of the Company as on 31st March, 2025 is Rs. 19,534,80,00 divided into 19,534,800 Equity Shares of Rs. 10/- each fully paid up.

During the year the Company has not transfer any amount to Capital Reserve.

Fixed Assets:

During the financial year 2024-25, new assets are acquired amounting to Rs.3.78/- Lakhs

Trade Receivables (Sundry Debtors):

Sundry debtors increased to Rs 2470.35. lakhs as on 31st March, 2025 as against Rs. 2213.63 lakhs debtors in the previous financial year.

Cash and Cash Equivalents:

Cash and Cash Equivalents raised to Rs. 49.93 lakhs as against Rs. 0.47 lakhs in the previous year.

Loans and Advances:

Long Term Loans and Advances is 850.26 lakhs in Current Financial Year compared to 861.91 in previous year. Short Term Loans and Advances is Rs.251.93 lakhs as against Rs. 329.30 lakhs in the previous financial year.

Non-Current Liabilities: Long term borrowings as on 31.03.2025 is Rs.169.95 lakh as against Rs.91.79 lakh in the previous year.

Current Liabilities:

Short term borrowings as on 31st March, 2025 is Rs. 810.23 lakhs as against Rs. 793.24 lakhs in the previous Financial Year.

Trade Payables (Sundry Creditors)

Total outstanding dues to Creditors other than micro enterprises and small enterprises as on 31.03.2025 is Rs.653.14 lakh against Rs.680.95 lakh in the previous year.

B. OPERATIONAL RESULTS

Turnover:

During the financial year 2024-25 the turnover of the Company was Rs. 4108.89 lakhs and income from other sources as on 31st March, 2025 was 33.96 lakhs, as compared to the turnover of the company on 31st March, 2024 as 3526.71 lakhs and income from other sources was Rs. 35.48 lakhs in the previous financial year.

Depreciation:

The Company has provided for depreciation of Rs. 25.93 lakhs during the financial year 2024-25 whereas depreciation of Rs. 22.97 lakhs was provided in the previous financial year.

Tax Expenses :

The Company?s tax expenses of Rs. 20.65 lakhs plus Deferred Tax Rs.1.37 lakh in the financial year 2024-25 whereas in the previous financial year tax expenses was Rs.10.97 and Deferred Tax Credit was Rs.2.54 lakh.

Net Profit:

The Net Profit of the Company after tax is Rs. 62.67 lakhs for the Financial Year 2024-25 as compared to a profit of Rs. 38.46 lakhs in the previous financial year.

Earnings per Share:

The Earnings per Share of the Company as on 31^st March, 2025 is Rs. 0.32 per share for Face Value of Rs. 10/- as against Rs. 0.20 per share for Face Value of Rs. 10/- in the previous financial year.

ACKNOWLEDGEMENT

Your Directors wish to express their appreciation to the continued and kind co-operation received from the Banks, Government Authorities, Customers, Vendors and Shareholders during the year under review. Your Directors also wish to place on record their deep sense of appreciation for the committed service of the Executives, staff and Workers of the Company. We look forward for the continued support of every stakeholder in the future.