Akanksha Power & Infrastructure Ltd Management Discussions

CAUTIONARY STATEMENT

This Management Discussion and Analysis may contain forward-looking statements relating to the Companys objectives, projections, estimates, expectations, or predictions, as defined under applicable securities laws and regulations. These statements are based on certain assumptions and anticipated future events.

By nature, forward-looking statements involve inherent risks and uncertainties. Actual results may differ materially from those expressed or implied due to factors such as climatic conditions, global and domestic demand-supply dynamics, fluctuations in finished goods prices, raw material costs and availability, foreign exchange movements, changes in government regulations and tax structures, and broader economic or political developments, both within India and in countries where the Company operates. Additional variables such as litigation outcomes and industrial relations may also influence performance.

The Company does not undertake any obligation to update or revise these forward-looking statements in light of subsequent developments, new information, or future events. These statements should not be relied upon as guarantees of future performance.

ECONOMIC & INDUSTRY OVERVIEW

The global economy, including India, continues to face heightened uncertainty amid an escalating trade war. The imposition of higher reciprocal tariffs by the United States has intensified concerns around global trade policy, with the scale of these measures exceeding initial expectations, not only for India but for several other economies as well. If left unresolved, this prolonged trade conflict could further aggravate global tensions, posing significant risks to both international and domestic growth trajectories. It is hoped that policymakers across nations will work toward a constructive resolution soon.

Against this backdrop of global volatility, the Reserve Bank of Indias Monetary Policy Committee (MPC) has signalled its intent to support domestic growth. In line with expectations, the MPC reduced the policy rate by 25 basis points and shifted its stance from neutral to accommodative. Acknowledging the complexity of the situation, the RBI Governor aptly noted the presence of "known unknowns" that make it challenging to quantify the full extent of the adverse impact. Reflecting this cautious outlook, the Central Bank has revised Indias GDP growth projection for FY26 downward from 6.7% to 6.5%.

The recent GST reforms represent a significant step toward consumer-centric and growth-oriented policy. By lowering tax rates on essential goods and selecting high-value items, the reforms aim to enhance affordability and stimulate demand. Simultaneously, they empower MSMEs and manufacturers by improving cash flow efficiency and simplifying compliance. These changes also strengthen state revenues and contribute to a broader economic multiplier driving consumption and manufacturing growth across India.

Beyond the immediate consequences of higher tariffs, the global trade tensions are expected to trigger significant indirect effects. As global growth decelerates, capital flows to emerging economies, including India are likely to be adversely affected. This shift in investor confidence could lead to increased volatility in financial markets and a cautious stance among domestic investors.

Amid ongoing global disruptions, uncertainty around trade policy and geopolitical developments continues to weigh on sentiment. These factors may dampen investment appetite and slow down momentum in key sectors, underscoring the need for policy agility and economic resilience.

The Union Budget for FY25 lays out a bold and comprehensive roadmap aimed at propelling India toward developed nation status. Infrastructure development remains a cornerstone of this vision, with substantial allocations reaffirming the governments commitment to long-term capacity building and inclusive growth.

The budget strategically focuses on three key pillars: employment generation, fiscal consolidation, and infrastructure expansion. Capital expenditure (CAPEX) has been maintained at 11.10 lakh crore, representing

3.4% of GDP underscoring the governments resolve to sustain momentum in public investment despite global economic headwinds.

A recent report by a leading infrastructure rating agency that India will invest 143 trillion in project infrastructure between FY24 and FY30, more than double the 67 trillion spent over the previous seven fiscal years since 2017. This surge in investment is expected to catalyse economic activity across sectors, enhance connectivity, and improve service delivery nationwide.

To further accelerate infrastructure development, the budget encourages private sector participation through mechanisms such as viability gap funding and supportive policy frameworks. These measures aim to unlock capital, reduce execution risks, and foster innovation in project delivery. Overall, the Union Budget FY25 reinforces economic stability while positioning India for sustained growth and global competitiveness.

The Indian government continues to advance its ambitious clean energy agenda, setting a bold target of 500 GW of non-fossil fuel capacity by 2030. This transformative vision is being supported through a multi-pronged approach that includes:

PM Surya Ghar: Muft Bijli Yojana, which empowers households to adopt rooftop solar and generate up to 300 units of free electricity monthly

Development of large-scale solar parks to harness regional solar potential

Strengthening domestic manufacturing of critical components, reducing import dependency and fostering self-reliance

Expansion of grid and energy storage infrastructure, with 61 GW of storage capacity projected as essential by 2030

Enhanced access to finance through green bonds, structured debt instruments, and targeted subsidies

These initiatives are designed not only to decarbonize the energy mix but also to ensure long-term energy security and economic resilience. With over 226 GW of renewable capacity already operational and another 253 GW under implementation or tendered, India is well on track to meet its 2030 target. The renewable energy push is also expected to catalyze job creation, attract private investment, and position India as a global leader in sustainable energy innovation.

During FY 2024 25, Indian corporates have navigated global uncertainties with measured optimism. While international headwinds persist, sectors anchored in domestic demand have demonstrated notable resilience, supported by stable consumption patterns and a moderating inflation environment.

Indias macroeconomic fundamentals remain robust. The economy is well-positioned for sustained growth, with GDP projected to expand by 6.2% in FY26. This outlook is underpinned by strong domestic demand, continued structural reforms, and a supportive policy environment.

The anticipated increase in government capital expenditure, coupled with a gradual revival in private sector capex, is expected to further stimulate economic activity. Strategic initiatives such as Make in India and the Production Linked Incentive (PLI) schemes continue to drive momentum in manufacturing and digital transformation, reinforcing Indias appeal as a long-term investment destination.

While global economic conditions remain challenging, Indias relative growth advantage and improving microeconomic stability offer a strong buffer. These factors collectively position the country for sustained medium-term gains and deeper integration into global capital flows.

Indias relatively low external trade exposure offers a degree of insulation amid the ongoing global trade war. However, in todays interconnected economy, no nation remains entirely immune to heightened global uncertainties. Even prior to the escalation of trade tensions, Indias GDP growth had begun to moderate, reflecting structural challenges and subdued broad-based consumption.

The intensifying trade conflict is expected to further weigh on Indias growth outlook, particularly through indirect channels such as weakened global demand, capital flow volatility, and investor caution. Domestic consumption, while stable in pockets, continues to lack the widespread momentum needed to drive sustained acceleration.

Yet, amid these concerns, a key positive emerges: the moderation in domestic inflation. This provides the Reserve Bank of India with greater policy flexibility to support growth through accommodative measures an encouraging signal for sectors reliant on infrastructure investment and digital transformation.

For industries like Power Quality Solutions (PQS) and smart metering, this macroeconomic backdrop presents both challenges and opportunities. While global headwinds may temper short-term expansion,

Indias continued focus on grid modernization, loss reduction, and energy efficiency - backed by fiscal and policy support positions these sectors for resilient, long-term growth.

OUTLOOK OF THE COMPANY:

In FY 2024 25, Indian corporates have demonstrated resilience amid global uncertainty, navigating trade disruptions and capital flow volatility with cautious optimism. Sectors anchored in domestic demand particularly infrastructure, energy, and digital utilities have remained robust, supported by stable consumption and moderating inflation.

Indias macroeconomic fundamentals continue to inspire investor confidence. With GDP growth projected at 6.2% for FY26, the economy is well-positioned for sustained expansion. This outlook is reinforced by:

Strong domestic demand

Structural reforms in taxation, manufacturing, and energy

Continued fiscal support through capital expenditure

For investors in smart metering and PQS, this environment presents a compelling opportunity. Government-led initiatives such as Make in India, PLI schemes, and Revamped Distribution Sector Scheme (RDSS) are accelerating digital transformation across utilities. The push for grid modernization, loss reduction, and consumer empowerment is driving demand for:

a. Advanced metering infrastructure (AMI) b. Real-time data analytics c. Integrated PQS platforms for voltage regulation and energy efficiency

With increasing emphasis on energy reliability, renewable integration, and smart distribution, APILs end-to-end capabilities, from design and manufacturing to deployment and data management, positioned the company as a strategic enabler in this transition. Despite global headwinds, Indias relative growth advantage and improving microeconomic stability offer a strong buffer. This translates into a steady and stable profile, especially in sectors aligned with infrastructure, digital utilities, and energy resilience.

AKANKSHAs performance during the current financial year reflects the strength of Indias macroeconomic environment and sectoral tailwinds. Production and dispatches have remained firmly aligned with budgeted targets, demonstrating operational discipline and execution excellence.

A key growth catalyst continues to be the momentum in green energy initiatives and DISCOM reform projects, both of which are backed by consistent policy direction and sustained investment under Indias broader energy transition framework. These developments are driving demand for advanced metering infrastructure and Power Quality Solutions, reinforcing our strategic positioning in the utility technology space.

Strong order booking with the healthy enquiry pipeline further validates market confidence, with strong order visibility and continued interest from both public and private sector stakeholders. This positions AKANKSHA for scalable growth and deeper participation in Indias evolving energy ecosystem.

FY 2024 25 closed by AKANKSHA with a robust operational foundation and clear strategic momentum. Key performance indicators reflect disciplined execution and market responsiveness:

Production Efficiency: Output volumes have consistently met or exceeded quarterly targets, with minimal variance across product lines.

Dispatch Reliability: On-time delivery rates remain above 97%, underscoring supply chain resilience and customer satisfaction.

Order Book Strength: The enquiry pipeline has converted confirmedorders at a healthy rate, with YoY into growth exceeding 18%.

Sectoral Alignment: Over 60% of new orders are linked to green energy and DISCOM reform initiatives, validating our strategic focus.

to evolve, with increased adoption of smart metering, grid AKANKSHAs technology portfolio continues analytics, and power quality solutions. These offerings are aligned with Indias energy transition goals and are gaining traction among utilities and industrial clients.

The company remains committed to operational excellence, digital innovation, and stakeholder value creation. FY 2024 25 is expected to deliver sustained growth, enhanced market share, and deeper policy-aligned engagement across the energy sector. Following performance reports are Self-explanatory.

The financial performance of the Company reflects a steady consistent and positive trajectory in terms of revenue generation, profitability, and overall financial health. Focusing on the most recentfi scal year, the Company has demonstrated robust growth across key financial parameters:

Net Sales and Service Revenue

In the current financial year, the Company achieved net sales and service revenue of .78,74.41 Lacs, registering a growth of 40% over the previous years revenue of 56,53.13 Lacs

This significant increase reflects the Companys strong market presence, successful execution of strategic initiatives, and expanding customer base.

The double-digit growth also indicates effective product and service delivery, market penetration, and possibly an improvement in pricing strategies or volume increases.

Pro t Before Tax (PBT)

Profit Before Tax increased to 606.07 Lacs, up from 412.51 Lacs in the previous year, representing a growth of 47 %.

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This improvement is a testament to the Companys ability to manage costs effectively while scaling up its operations. The steady rise in PBT demonstrates operational efficiency and strong control over administrative and other indirect expenses.

Pro t After Tax (PAT)

Profit After Tax increased to 438.06 Lacs, compared to 290.89 Lacs in the previous year, showing a growth of

50.52 %.

The PAT growth, although slightly moderated compared to revenue and PBT, indicates healthy bottom-line sustainability despite reflects potential tax rate adjustments or extraordinaryexpenses. This the Companys capacitytoconvertits operating into shareholder value, which is crucial for long-term financial stability.

Special Note on Financial Performance

The elevated debtor outstanding reflected in the financials is primarily attributable to the execution of a Greenfield Street lighting turnkey project under the Public Private Partnership (PPP) program with OUDF, under the aegis of the Government of Odisha (GOO). As part of the contractual framework, the Company contributed 10% of the project value, which has been retained and is scheduled for realization upon completion of the warranty period.

This retention amount has been appropriately classified under realisable debtors, in accordance with accounting standards. While this classification temporarily inflates the debtor figures, it represents a secured and recoverable asset, aligned with the projects financial structure and timeline.

OVERALL GROWTH TREND

Over the last five years, the Company has consistently improved its financial performance as:

Financial Year	Gross Revenue (Rs./lakh)	Net Pro t (Rs./lakh)	Net Pro t Margin (%)
2020-21	74,27.35	394.08	5.31 %
2021-22	51,83.70	242.39	4.68 %
2022-23	46,09.44	283.72	6.16 %
2023-24	56,53.13	290.89	5.14 %
2024-25	78,74.41	438.06	5.56%

Strong double-digit growth in revenue, indicating increasing demand and effective delivery.

Healthy profitmargins, reflecting in operations and cost control.

Sustainable PAT growth, ensuring value creation for stakeholders.

Such performance underscores the Companys strategic resilience, robust business model, and adaptability in a dynamic market environment. Going forward, maintaining this momentum will depend on continued innovation, customer engagement, operational and prudent financial management.

A PIVOTAL ENHANCEMENT TO THE PRODUCT FAMILY

The company is committed to enhancing operational efficiency by optimizing infrastructure through advanced technology and strategic IT interventions. To better serve its customers, it has positioned itself as a Single

Window Solution Provider for comprehensive AT&C loss reduction, addressing both technical and commercial dimensions. Key focus areas include:

a. Power Quality Solutions targeting reduction of technical losses

b. AMI Infrastructure enablingsystem-widelossmitigation through intelligent metering and data analytics.

In response to PQS Solutions:

In a strategic move to strengthen its capabilities, PQS has successfully acquired a Medium Voltage Capacitor production line, equipped with cutting-edge technology. This acquisition, coupled with expanded market accessthroughTDK, scale new heights in the power quality segment.

This momentum is further accelerated by the development of the 36 kV Double Break Capacitor Switch, a significant addition that expands the companys product portfolio while reinforcing its Power Quality Solutions.

This innovation positions the company to play a dominant role in alignment with CEA guidelines for the renewable energy segment, strengthening its relevance and leadership in grid modernization and loss reduction.

Through its collaboration with TDK Technology, the company has significantly enhanced its design capabilities addressing reactive power losses, harmonics, and overall system inefficiencies. This advancement supports the development of low-loss, high-efficiency electrical infrastructure across critical sectors including Mines, Steel, Cement, Renewable Energy, Heavy Industries, and DISCOMs.

As a result, AKANKSHA has emerged as a trusted and recognized system provider, delivering reliable and performance-driven solutions tailored to the evolving needs of these industries.

With technology support from ASIPL, an AI-driven IoT innovation company, the organization is advancing toward next-generation digital solutions for remote operation and intelligent monitoring. This enablestheintegrationofsmart paving the way for highly responsive, data-driven infrastructure that enhances reliability, efficiency,

As regards to the AMI infrastructure,

As part of its commitment to advancing AMI infrastructure, the company has commenced operations of its flagship initiative MITL, a visionary venture jointly promoted by MIDC and the Government of India. By taking over the distribution management operations with a strong emphasis on digital intervention, the company is laying the foundation for a next-generation, end-to-end digital interface in electrical infrastructure. This milestone marks a significant leap toward realizing the companys long-standing vision of a smart, efficient, and future-ready power ecosystem.

As regards to its AMI vertical:The company is steadily advancing its efforts to indigenize its AMI infrastructure technology, making it more India-centric and cost-optimized. As part of this initiative, one rating of its smart electricity meter has been successfully type-tested, with a second rating currently under evaluation. These milestones significantly enhance the companys market readiness and competitive positioning in the smart metering space.

In parallel, the company has also achieved successful testing and MID approval for its smart water meter, further expanding its product portfolio. With these innovations, the company is confidently progressing toward becoming a dominant player in the smart utility segment, offering high-quality, locally adapted solutions for modern infrastructure needs to manageallutility with a single infrastructure .

HUMAN RESOURCES/ INDUSTRIAL RELATIONS:

The Company remains deeply committed to the development of its human resources, recognizing that its employees are its greatest strength. It upholds the individual rights and dignity of every team member, fostering a culture of mutual respect and inclusivity. Throughout the year, management employee relations have remained cordial and collaborative. The Company has further strengthened its learning and development initiatives, aimed at enhancing individual capabilities, promoting team synergy, and driving collective success.

By cultivating an employee-friendly environment, nurturing a positive workplace culture, and offering clear career growth opportunities, the Company continues to empower its workforce and align personal development with organizational excellence.

INTERNAL CONTROL SYSTEM,

Given the complexity of the Companys business portfolio, a robust framework of internal control systems and compliance policies has been established to safeguard corporate interests and ensure adherence to applicable laws and regulations.

The Company maintains a comprehensive system of internal controls that provides reasonable assurance regarding the efficiency and reliability of operations, protection of assets, and accuracy of financial reporting. These controls are designed to uphold the integrity of financial data and ensure full compliance with statutory requirements.

The internal financial controls are both adequate and effectively operational, supported by well-defined systems that ensure consistent compliance with all relevant legal provisions. The internal audit function encompasses a broad spectrum of operational areas, evaluating the reliability and suitability of policies and procedures against established standards.

Internal auditors report directly to top management through the CFO, maintaining continuous oversight of policy adherence and system integrity. The audit services are outsourced to a reputed audit firm, ensuring objectivity and professional rigor. These systems are periodically reviewed and updated to reflect changes in operational dynamics and regulatory frameworks, reinforcing the Companys commitment to transparency, accountability, and continuous improvement.

RISKS & CONCERNS

The Company operates in a dynamic global environment characterized by heightened geopolitical instability, disrupted trade flows, Ongoing U.S.- China trade tensions and regional conflicts, particularly in West Asia, have resulted in supply shortages and cost escalations for critical raw materials such as BOPP film, -Foil, Synthetic AL OIL, which remain largely of import-dependent. These challenges are further exacerbated by the volatility in increas globalcommodityprices,makinglong-termcostforecasting diff icult. ingly

At the same time for capital goods manufacturer operating under fixed-price contracts, such unpredictability in input costs places considerable pressure on operating margins and can materially impact profitability unless effectively hedged, absorbed, or mitigated through strategic sourcing and financial planning.

STRENGTHS

On the operational front, AKANKSHA benefits from a well-diversified client base and consistent order inflow, significantly reducing dependency on any single industry, customer, or region. This strategic diversification acts as a buffer against sector-specific downturns and regional economic fluctuations, thereby enhancing revenue stability and business resilience.

The Company maintains strong control over critical components, ensuring reliability and cost efficiency across its offerings. Its long-standing technology partnership with TDK has been instrumental in strengthening design capabilities, fostering institutional knowledge retention, and enabling efficient decision-making. This collaboration supports seamless scalability while upholding stringent quality and compliance standards.

The enduring association with TDK, combined with experienced leadership, empowers AKANKSHA to navigate complex project environments, manage strategic customer relationships, and respond proactively to evolving market dynamics. These strengths are particularly vital as the Company positions itself to meet rising demand across infrastructure, energy, and green technology sectors, reinforcing its role as a trusted and future-ready solution provider.

GROWTH & POSITIONING

The Company has exhibited robust growth across its core business segments, propelled by strategic investments, operational efficiencies, and favourable market dynamics. Its diverse product portfolio, offering comprehensive end-to-end solutions across both commercial and technical domains, has positioned the Company to effectively address the growing demand for efficiency enhancement in power infrastructure.

This strong foundation enables the Company to capitalize on emerging opportunities in the infrastructure and green energy sectors, reinforcing its role as a forward-looking, innovation-driven leader in the industry.

CUSTOMER OUTREACH:

Leveraging its collaboration with TDK and targeted market development support, the Company has successfully built a robust and loyal customerbaseacrossglobalmarkets.Itscommitmenttocustomizedsolutions, prompt service, and continuous technical support has led to consistentlyhighlevelsofcustomersatisfaction and trust.

The Companys broad geographic presence underpins a resilient and adaptive sales strategy, enabling it to respond effectively to emerging market demands while maintaining long-term relationships with leading positions the Company as a preferred partner in delivering solutions diverse industry verticals. reliable,high-performance

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS:

In accordance with the SEBI (Listing Obligations and Disclosure Requirements 2018) (Amendment) Regulations, 2018, the Company is required to give details of significant changes (change of 25% or more as compared to the immediatelyspecific previous nancial year) in key sector financial ratios.