Aksh Optifibre Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENT

The fiber optics industry is projected to reach USD 6.8 billion by 2029 from USD 3.18 billion in 2024, at a CAGR of 16.4% from 2024 to 2029. Rapid expansion of data centers, cloud services, and 5G infrastructure is driving strong adoption of fiber optic solutions. Rising internet penetration and surging data tra_c are accelerating the deployment of high-bandwidth fiber networks.

The global fiber optics market size is expected to grow from US$ 7.7 billion in 2025 to US$ 15.8 billion, with a CAGR of 10.7% by 2032. According to the Persistence Market Research report, the fiber optics industry is experiencing strong growth, driven by increasing demand for high-speed data transmission and the expansion of telecommunications infrastructure. Fiber optics are used in various applications, including internet services, healthcare, defense, and industrial automation, offering unparalleled bandwidth, security, and durability. Additionally, advancements in 5G technology, cloud computing, and the Internet of Things (IoT) are further accelerating the global expansion and innovation.

Optical Fiber Market Analysis:

The development of the optical fiber network is anticipated to be driven by the surge in consumer data demand and the rapid proliferation of Internet of Things (IoT) devices. Also, governments of numerous countries across the globe have made significant investments in optical fiber deployments, creating lucrative opportunities for market growth. For instance, the US requires a substantial expansion of fiber-optic infrastructure within the next five to seven years to support the upcoming 5G wireless network, promote broadband competition, and provide rural broadband coverage. This necessitates an estimated investment of ~US$ 130–150 billion in fiber cable deployment. These developments highlight the immense potential for businesses operating in the telecommunications industry to capitalize on the growing demand for fiber-optic infrastructure and leverage the opportunities created by the 5G revolution, further fueling the optical fiber market growth.

Optical Fiber Market Industry Overview:

An optical fiber, also known as an optic fiber, is a highly flexible glass or plastic fiber that enables the transmission of light signals from one end to another. These fibers play a crucial role in fiber-optic communications, offering the advantage of longer transmission distances and higher bandwidths compared to traditional electrical cables. The utilization of optical fibers is preferred to metal wires due to their lower signal loss and immunity to electromagnetic interference, which is a common issue faced by metal wires. In addition to telecommunications, optical fibers are extensively used for applications such as illumination, imaging, and carrying light or images into confined spaces, similar to the application of fiberscopes. Moreover, specialized fibers are employed for various purposes, including fiber optic sensors and fiber lasers. Source: https://www.theinsightpartners.com/reports/optical-fiber-market

OPPORTUNITIES AND THREATS

OPPORTUNITIES

The optical fibre industry is strategically positioned at the core of the global digital ecosystem, benefiting from structural tailwinds arising from technological advancement, exponential data growth, and policy-driven infrastructure development. The following factors are expected to drive long-term growth across the sector:

1. Accelerated Deployment of 5G and Next-Generation Networks

The ongoing global transition toward 5G networks, coupled with future advancements in communication technologies, is substantially increasing the requirement for dense fibre backhaul and fronthaul infrastructure. Optical fibre, by virtue of its superior bandwidth and low latency capabilities, remains indispensable to the effective functioning of next-generation telecom networks. (Indicative references: GSMA industry intelligence)

2. Exponential Growth in Data Consumption

The proliferation of digital services including cloud computing, video streaming, remote working solutions, and enterprise digitization has resulted in an unprecedented surge in data tra_c globally. This structural shift necessitates the expansion and strengthening of fibre-based networks to support high-speed and reliable data transmission. (Indicative references: Cisco Systems internet and data tra_c outlooks).

3. Government-Led Digital Infrastructure Initiatives

Public sector initiatives aimed at enhancing broadband penetration, particularly in rural and underserved areas, continue to act as a significant demand catalyst. In India, programs such as BharatNet are expected to drive large-scale fibre deployment, thereby creating sustained opportunities for industry participants.

4. Expansion of Data Centres and Cloud Ecosystems

The rapid growth of hyperscale data centres and cloud infrastructure has amplified the need for high-capacity, low-latency connectivity. Optical fibre forms the backbone of interconnectivity between data centres and end users, thereby reinforcing demand across domestic and international markets.

5. Increasing Adoption of Fibre-to-the-Home (FTTH)

The rising demand for high-speed broadband connectivity at the household level, driven by evolving consumer behavior and digital lifestyles, is accelerating FTTH rollouts. This trend is particularly pronounced in emerging economies, offering long-term volume visibility for fibre manufacturers.

6. Emergence of Smart Infrastructure and IoT Ecosystems

The development of smart cities, intelligent transport systems, and Internet of Things (IoT)-enabled solutions requires robust communication infrastructure. Optical fibre is expected to play a pivotal role in enabling seamless connectivity across such integrated ecosystems.

7. Export Potential and Global Market Penetration

With increasing global demand for fibre optic infrastructure, manufacturers have the opportunity to expand their geographic footprint and diversify revenue streams by tapping into international markets, subject to competitive positioning and trade dynamics.

THREATS

The optical fibre industry remains exposed to a range of external risks and uncertainties that may impact its performance, profitability, and long-term sustainability:

1. Intensified Competitive Landscape

The presence of large-scale global manufacturers, coupled with regional players, has resulted in heightened competition, often leading to aggressive pricing strategies and margin compression. Sustained oversupply conditions may further exacerbate this challenge.

2. Technological Substitution and Disruption Risks

While optical fibre remains the preferred medium for high-capacity data transmission, emerging technologies such as fixed wireless access, satellite-based broadband, and evolving wireless standards may partially substitute fibre in specific use cases, particularly in last-mile connectivity.

(Indicative references: Deloitte telecom outlooks)

3. Volatility in Raw Material Costs

Fluctuations in the prices of key inputs, including silica and petrochemical derivatives, may adversely affect cost structures and profitability. Limited supplier concentration further accentuates this risk.

4. Dependence on Telecom Operator and Government Spending

A substantial portion of demand is linked to telecom operators capital expenditure cycles and government-funded projects. Any deferment, slowdown, or reprioritization of such investments may lead to demand variability.y.

5. Regulatory and Policy Uncertainties

A substantial portion of demand is linked to telecom operators capital expenditure cycles and government-funded projects. Any deferment, slowdown, or reprioritization of such investments may lead to demand variability.

6. Supply Chain and Geopolitical Risks

Global supply chains remain vulnerable to disruptions arising from geopolitical tensions, trade restrictions, and unforeseen events such as pandemics. Such disruptions may impact both raw material availability and logistics efficiency.

7. Foreign Exchange Exposure

Given the industrys dependence on imported inputs and export-oriented operations, volatility in foreign exchange rates may have a material impact on margins and overall financial performance.

8. Execution and Infrastructure Constraints

Delays in project execution - arising from right-of-way (RoW) issues, administrative approvals, or infrastructure bottlenecks - may lead to cost overruns and deferred revenue realization, thereby affecting overall project viability.

BUSINESS REVIEW & GLOBAL OUT LOOK

Fibre Optic Cable Market

The global fibre optic cable market continues to witness strong and structurally sustained growth in 2026, driven by the rapid expansion of high-speed digital infrastructure, rising data consumption, and the increasing adoption of advanced technologies such as 5G, cloud computing, artificial intelligence (AI), and Internet of Things (IoT). The market is estimated at approximately USD 11.5 billion in 2026 and is projected to grow at a CAGR of around 6-7% over the medium term, supported by large-scale fibre deployment across telecom networks, data centers, and smart city infrastructure.

A key shift in the current year is the emergence of AI-driven data center demand as a dominant growth catalyst. Hyperscale data centers and cloud providers are significantly increasing investments in optical connectivity, leading to unprecedented demand for high-capacity fibre networks. This has resulted in supply constraints and even sharp increases in fibre prices due to limited upstream manufacturing capacity and long production cycles. From a structural standpoint, the industry is primarily segmented into:

• Telecommunications: The largest segment, accounting for the majority of demand, driven by 5G rollouts, fibre-to-the-home (FTTH) expansion, and broadband penetration. Over 65% of global fibre usage is linked to telecom infrastructure.

• Data Centers & Cloud Infrastructure: A rapidly growing segment in 2026, fueled by AI workloads, hyperscale computing, and inter-data center connectivity requirements. Data centers now account for a significant share of incremental demand.

• Enterprise & Smart Infrastructure: Includes applications in smart cities, industrial automation, utilities, railways, and defense, where high-speed and reliable communication networks are critical.

• Specialized Applications: Such as medical equipment, sensing technologies, and aerospace, which are witnessing faster growth rates due to precision and performance advantages of optical fibre. Geographically, Asia-Pacific continues to dominate the market, led by aggressive network expansion in countries like India and China, supported by government initiatives and rising internet penetration. India, in particular, is expected to grow at a higher CAGR of nearly 10% over the forecast period, reflecting strong investments in digital infrastructure and rural connectivity. Overall, the fibre optic cable industry in 2026 is transitioning from a traditional telecom-driven cycle to a broader digital infrastructure backbone, with AI, cloud computing, and data-centric ecosystems emerging as key demand drivers. This structural transformation is expected to sustain long-term growth momentum while also creating challenges related to supply chain constraints, capital intensity, and technological upgradation.

FRP (Fibre Reinforced Polymer)

The FRP industry in 2026 continues to grow steadily, driven by rising demand for lightweight, durable, and corrosion-resistant materials across telecom, power, and infrastructure sectors. A key demand driver remains the telecom industry, where FRP rods are widely used as strength members in optical fibre cables, supported by ongoing 5G rollout, FTTH expansion, and broadband connectivity initiatives.

In addition to telecom, demand is increasing from power transmission, renewable energy, and infrastructure projects due to FRPs superior strength, insulation properties, and long service life. Asia-Pacific, particularly India, remains a high-growth region owing to strong digital and infrastructure development.

Overall, the FRP business in 2026 reflects stable growth with diversified applications, though it continues to face challenges such as raw material price volatility and competitive market conditions.

Service

1. E Governance Sector – AKSH is working as Local Service provider in Emitra Project – a flagship project of Government of Rajasthan for delivering the 773 kind G2C and B2C services to citizens nearby their door step through emitra ICT Enabled Kiosk. AKSH is one of largest LSP in this project and having 12.50 Market share in average across Rajasthan for the transaction carried out by all about 76,200 Emitra kiosk. AKSH is having 8499 Active kiosks across Rajasthan. Recently in Rajasthan District Boundaries redefine by creating the new districts. AKSH is now having emitra kiosk in all 41 districts and this year targeting to achieve 12.48% market share in both terms i.e. Number of kiosk and Number of transactions. Aksh has started as planned for mobile emitra called mini emitra & targeting 5000 mini emitra. As per recent CAGR reports, the India E-Governance Market is projected to grow at a CAGR of 17.93% during 2025–2035, while the India Interactive Kiosk Market is expected to grow between 11.1% and 15.95% during the forecast period up to 2034.

2. Smart Solutions: AKSH has executed many smart solutions projects. Aksh has developed applications software for smart water metering prepaid as well as postpaid services. Aksh has developed smart dashboard for Various kind of services and data analytics. Aksh have integrated on smart dashboard the smart lighting, smart parking, solar inverter and smart level sensors. As per the latest market research reports, Indias Smart Solutions sector is witnessing rapid growth across segments. Smart Cities are projected to grow between 15.35% and 34% CAGR, Smart Homes at 31.6%, Smart Home Security above 20%, Smart Healthcare around 27.1%, and Home Automation between 16%–18% during the forecast period up to 2034.

3. Turnkey Projects: AKSH has developed the expertise as an System Integrator in various solutions implementation like Fibre optic network deployment, FTTH projects, Smart city & surveillance projects, E- Governance infrastructure project and collaboration solutions. aksh has strategic tie up with reliance group company for offring IOT based CCMS smart penal solution and deploying the same in different cities in India. "As per the latest CAGR reports, the Global Turnkey Project Market is projected to grow at approximately 5.5% CAGR till 2033, while the Turnkey Project Management and Engineering Services Market is expected to grow at around 6.5% CAGR during the same period. Additionally, the Global IT Services Market is forecasted to register an annual growth rate of 8.38% up to 2030.

4. FTTH: Aksh is executing FTTH in Rajasthan with BSNL and Railtel. Aksh is creating last mile network to provide FTTH services and have achieved 18000 customer base. As per the latest CAGR market research reports, the India Broadband Services Market is projected to grow at approximately 15.6% CAGR up to 2033. Considering the rapid increase in digital adoption, fiber broadband penetration, 5G rollout, OTT consumption, and government initiatives such as BharatNet and Digital India, we anticipate similar growth opportunities in Rajasthan and plan to further expand our broadband services into additional areas and customer segments.

5. IT Hardware: Aksh has tie up with leading OEM like LG, Samsung, Acer, Dell, HP, & participating in hardware procurement bids of government department. As per the latest CAGR market research reports, the India IT Hardware Market is projected to grow at approximately 7%–7.3% CAGR up to 2033, driven by increasing digital transformation, e-governance initiatives, smart city projects, data center expansion, and rising IT hardware procurement by government departments and public sector organizations. Considering the continuous increase in government IT infrastructure spending, significant growth opportunities are expected in hardware procurement tenders and turnkey IT projects across various departments.

RISKS AND CONCERNS

The industry is exposed to working capital and counterparty risks, primarily due to the financial stress of telecom operators. Receivable cycles in the sector typically range between 90 - 150 days, and delays in payments can strain liquidity and increase reliance on external borrowings.

Regulatory and execution challenges continue to pose operational risks. Delays in obtaining Right-of-Way (RoW) permissions, project clearances, and infrastructure deployment approvals can extend project timelines and escalate costs. Additionally, changes in government policies relating to import duties, localisation norms, or public procurement can impact competitiveness and supply chain dynamics.

The industry must also navigate technological substitution risks, albeit moderate in nature. While optical fibre remains the backbone of high-speed communication networks, emerging technologies such as 5G Fixed Wireless Access (FWA) and satellite-based broadband may partially substitute fibre deployment in select last-mile connectivity scenarios.

Lastly, environmental and sustainability considerations are becoming increasingly relevant. Optical fibre manufacturing is energy-intensive, and compliance with evolving ESG norms may result in incremental capital and operating expenditure. Companies are required to invest in energy efficiency, waste management, and sustainable practices to align with regulatory and stakeholder expectations.

INDUSTRIAL RELATIONS AND HUMAN RESOURCE DEVELOPMENTS

The Company continues to recognise that a stable industrial relations environment and a progressive human resource framework are fundamental to sustainable business performance. During the year, industrial relations remained cordial and harmonious across all operational locations, with no significant disruptions affecting productivity. The management maintained an open and transparent communication framework with employees and worker representatives, fostering mutual trust, timely grievance redressal, and collaborative problem-solving. Continuous engagement initiatives, including regular meetings, feedback mechanisms, and participative forums, have further strengthened workplace cohesion and alignment with organisational objectives. On the human resource front, the Company has adopted a structured and forward-looking approach towards talent management, focusing on attracting, developing, and retaining a competent and motivated workforce. Emphasis was placed on capability building through targeted training and development programmes, covering technical skills, leadership development, compliance awareness, and digital competencies. Learning interventions were aligned with evolving business requirements and industry trends to ensure workforce readiness in a dynamic operating environment.

The Company also prioritises performance-driven culture through robust appraisal systems, clearly defined key performance indicators, and merit-based recognition and reward mechanisms. Employee well-being remains a key focus area, supported by initiatives relating to health, safety, work-life balance, and an inclusive workplace environment. Various welfare measures, employee engagement activities, and awareness programmes were conducted during the year to enhance morale and productivity. Further, the Company continues to strengthen its HR policies and practices in line with applicable labour laws and corporate governance standards. E_orts towards digitisation of HR processes, enhancement of internal controls, and adoption of best-in-class HR practices have contributed to improved operational efficiency and employee experience.

Overall, the Companys commitment to nurturing a skilled, engaged, and resilient workforce, coupled with stable industrial relations, positions it well to achieve its strategic objectives and long-term growth.

INTERNAL CONTROL AND THEIR ADEQUACY

The Company has established a robust internal control framework designed to ensure orderly and efficient conduct of its business operations, safeguarding of assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records, and timely preparation of reliable financial information. The internal control systems are commensurate with the size, scale, and complexity of the Companys operations, including its diversified business segments.

The Company maintains well-documented policies, standard operating procedures (SOPs), and authority matrices to ensure that all transactions are authorized, recorded, and reported appropriately. Key financial controls, including budgeting, periodic financial reviews, variance analysis, and approval mechanisms, are embedded across functions to monitor performance and ensure financial discipline. The enterprise resource planning (ERP) systems and IT controls further strengthen the reliability and integrity of data and reporting processes.

An independent Internal Audit function, supported by reputed external firms, conducts periodic audits covering key operational, financial, and compliance areas. The scope and audit plans are reviewed and approved by the Audit Committee of the Board. The

findings and recommendations of the internal auditors are placed before the Audit Committee at regular intervals, and corrective actions are tracked for timely closure.

The Audit Committee, comprising Independent Directors, provides strategic oversight on financial reporting, internal controls, and risk management systems. It regularly reviews the adequacy and effectiveness of internal controls, significant audit observations, and compliance with applicable laws and regulations, including the provisions of the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Further, the Company has implemented a comprehensive risk management framework to identify, assess, and mitigate key business risks. Internal financial controls over financial reporting (IFC) are periodically tested and evaluated, and no material weaknesses were observed during the year under review.

Based on the internal audit reports, management reviews, and Audit Committee assessments, the internal control systems of the Company are considered adequate and operating effectively during the year.

RISK MANAGEMENT FRAMEWORK

• Comprehensive Risk Identification: The company uses multiple approaches to uncover both internal and external threats, including risk identification surveys, business environment analysis, and feedback solicitation.

• Active Stakeholder Engagement: By incorporating input from both internal and external stakeholders, the framework ensures a 360-degree view of potential risks, promoting a culture of transparency and trust.

• Strategic Risk Management: Risks are not only identified but scrutinized, managed, and mitigated, with a focus on prioritizing actions that align with the companys core objectives.

• Adaptability and Agility: The framework is designed to evolve, ensuring the company can adapt to changing business demands, emerging threats, and new technologies in real-time.

• Objective: The primary goal is to protect stakeholders interests, ensure business continuity, and provide a secure, sustainable environment. Financial Performance

I. Source of funds

1. Share capital

The Company has only one class of shares – equity shares of par value Rs. 5/- each. Authorized share capital is Rs. 26,005.00 lakhs, divided into 5,201.00 lakhs equity shares of Rs.5/- each. There has been no change in the Issued, Subscribed and Paid up capital of the Company, which is Rs. 8134.90 lakhs as at March 31, 2026 .

2. Other Equity Capital Reserve

The balance as at March 31, 2026 is Rs. 2,223.35 Lakhs, same as at March 31, 2025.

Securities Premium

The balance as at March 31, 2026 is Rs. 33,064.11 Lakhs, same as at March 31, 2025.

Retained Earnings

There is a net deficit of Rs. 37,203.54 lakhs in the Retained Earnings as at March 31, 2026, as compared to net deficit of Rs. 36,359.77 Lakhs as at March 31, 2025.

During the year ended March 31, 2026, the Company incurred a net loss after tax of Rs. 856.42 lakhs, as compared to the net loss after tax of Rs. 2,011.30 lakhs during the year ended March 31, 2025. Shareholder funds The total shareholder funds decreased to Rs. 8,085.91 Lakhs as at March 31, 2026 as compared to Rs. 8,929.68 lakhs as at March 31, 2025.

The book value per share decreased to Rs. 4.97 as on March 31, 2026, as compared to Rs. 5.49 as at March 31, 2025.

II. Application of Funds

3. Property, Plant and Equipment Addition to gross block

During the year ended March 31, 2026, an amount of Rs. 51.39 lakhs was added to gross block of fixed assets as compared to Rs. 337.33 lakhs (including Rs. 1.90 Lakh of intangible assets and Rs. 76.12 Lakh in Right of use Assets) during the year ended March 31, 2025

Deductions to gross block

During the year ended March 31, 2026, there has been deduction from gross block aggregating Rs. 15.66 Lakhs Capital work–in- progress There has been a decrease of Rs. 1.15 Lakhs in Capital work in progress.

Capital expenditure commitments

NIL

4. Loans and Advances (current and non-current)

Loans and Advances include an amount of Rs. 3,256.17 lakhs (Previous Year: Rs. 2,976.17 lakhs) out of which Rs. 2,976.16 has been extended to related parties. This amount has been provided during the year by creating a provision for doubtful loans and advances. Further, NIL provision for doubtful loans and advances has been created for Loans and Advances to Others (Previous Year:Rs. 350.00 lakhs).

5. Trade Receivables (current and non-current)

Trade receivables of Rs. 3,236.78 lakhs as at March 31, 2026 as compared to Rs. 2,116.65 lakhs as at March 31, 2025, which are considered good and realizable. Debtors are at 25.75% of gross revenues, representing 94 days of gross revenues for the year ended March 31, 2026, as compared to 16.65% of gross revenues, representing 61 days of the gross revenues for the previous year ended March 31, 2025.

6. Other financial Assets (current and non-current)

Margin money deposits pledged with banks as security for various facilities, are having a carrying amount of Rs. 659.87 lakhs as at March 31, 2026 as compared to Rs. 401.42 lakhs as at March 31, 2025. Interest accrued includes Rs. 18.18 lakhs on fixed deposits and Rs. 3.84 lakhs on other deposits as at March 31, 2026, as compared to Rs. 37.94 lakhs and Rs. 305.98 lakhs respectively as at March 31, 2025. Foreign exchange forward contract is NIL as at March 31, 2026. Security Deposit amounts, as at March 31, 2026 is Rs. 187.07 Lakhs as compared to Rs. 260.20 lakhs as at March 31, 2025.

7. Inventories

Inventories amounted to Rs. 1,574.81 Lakhs as at March 31, 2026 as compared to Rs. 1,460.34 lakhs as at March 31, 2025. Inventories are valued at lower of cost or net realizable value.

8. Cash and cash Equivalents

The bank balances in India and outside India include both rupee accounts and foreign currency accounts aggregating Rs. 11.98 lakhs as at March 31, 2026 as compared to Rs. 89.85 lakhs as at March 31, 2025.

The cash equivalents also include Deposits with original maturity of less than 12 months amounted to Rs. NIL as at March 31, 2026 as compared to Rs. 48.60 lakhs as at March 31, 2025.

Cash Equivalent also include balance in unpaid dividend account. Nil as compared to Rs. 6.01 Lakhs to March 2025 Cash in hand amounted to Rs. 1.50 lakhs as at March 31, 2026 as compared to Rs1.95 lakhs as at March 31, 2025. Other bank balance amounted to Rs. 2,353.40 lakhs as at March 31, 2026 as compared to Rs. 1823.14 lakhs at March 31, 2025.

Liabilities

9. Trade Payables (current and non-current)

Trade payables amounted to Rs. 3,864.52 Lakhs as at March 31, 2026, as compared to Rs. 2,588.55 Lakhs as at March 31, 2025.

10. Provisions (current and non-current)

Long term and short-term provisions for employee benefits amounted to Rs. 242.04 lakhs as at March 31, 2026, as compared to Rs. 221.81 lakhs as at March 31, 2025.

11. Short Term Borrowings

Short-term borrowings amounted to Rs. 6,383.21 lakhs as at March 31, 2026, as compared to Rs. 6,417.24 lakhs as at March 31, 2025.

12. Other financial Liabilities (current and non-current)

Other financial liabilities amounted to Rs. 3,986.88 lakhs as at March 31, 2026, as compared to Rs. 3,572.91 lakhs as at March 31, 2025.

13. Other current liabilities

Other current liabilities amounted to Rs. 1,276.31 lakhs (including Rs. 642.03 lakhs advance from customers) as at March 31, 2026, as compared to Rs. 804.48 lakhs (including Rs. 67.88 lakhs advance from customers) as at March 31, 2025.

III. Results of Operations

The Company reported a net loss after tax amounted to Rs. 856.42 lakhs during the year ended March 31, 2026, as compared to net loss after tax of Rs. 2,011.31 lakhs during the year ended March 31, 2025.

1. Revenue from Operations

Revenues were generated mainly from sale of finished goods, traded goods and services. During the year ended March 31, 2026, the Companys revenue from operations was Rs. 12,570.66 lakhs as compared to Rs. 12,712.48 lakhs during the previous year ended March 31, 2025.

2. Other Income

Other income amounted to Rs. 201.36 lakhs for the year ended March 31, 2026, as compared to Rs. 156.69 lakhs during the previous year ended March 31, 2025.

3. Cost of goods sold

Cost of goods sold amounted Rs. 8,560.84 lakhs (70.98 % of gross revenue) during the year ended March 31, 2026 as compared to Rs. 8,923.28 lakhs (70.19 % of gross revenue) during the previous year ended March 31, 2025. It includes Rs. 7,880.94 lakhs (previous year Rs. 8,096.37 lakhs relating to raw material consumed, Rs. 412.64 lakhs (previous year Rs. 411.84 lakhs) relating to purchase of traded goods and Rs. 267.26 lakhs (previous year Rs. 415.07 lakhs) relating to decrease in inventories.

4. Employee Benefit Expense

Employee benefit expense amounted to Rs. 1793.19 Lakhs during the year ended March 31, 2026, as compared to Rs. 1,866.58 lakhs during the previous year ended March 31, 2025.

5. Other Expenses

Other expenses amounted to Rs. 1,911.10 lakhs during the year ended March 31, 2026 as compared to Rs. 2,213.47 lakhs during the previous year ended March 31, 2025.

6. Depreciation

Depreciation and amortization amounted to Rs. 1,002.63 lakhs during the year ended March 31, 2026 as compared to Rs. 1,248.83 lakhs during the previous year ended March 31, 2025.

7. Finance Cost

Finance Cost amounted to Rs. 667.79 lakhs during the year ended March 31, 2026 as compared to Rs. 856.92 lakhs during the previous year ended March 31, 2025.

8. Exceptional (expense)/income

Exceptional item, Income/(Expense) for the year ended March 31, 2026 represents provision written off of (Rs. 39.43 lakhs), Provision for diminution in value of Investment and Loans & Advances of Rs. 630.40 lakhs, Foreign Exchange Fluctuations of (Rs. 361.58 Lakhs) and other miscellaneous provision net of (Rs. 172.26 Lakhs)

9. Tax Expenses Income Tax

During the year ended March 31, 2026, the Company has not made any tax provision in view of brought forward losses.

Deferred Tax

During the year ended March 31, 2026, the Company has created a deferred tax asset of Rs. 264.35 lakhs.

10. Earnings Per Share (EPS) after exceptional item Basic and Diluted EPS

Basic and Diluted EPS after exceptional item is (Rs. 0.53) per share for the year ended March 31, 2026 and (Rs. 1.24) per share for the year ended March 31, 2025. The weighted average shares used in computing EPS is 16,26,97,971 for the year ended March 31, 2026, same as year ended March, 2025.

11. Segmental Profitability

(Rs. in lakhs)

Segment YE Mar26 YE Mar25 % Increase/

Segment Results	YE Mar26	YE Mar25	% Increase/ (Decrease)
	Manufacturing
Revenues	6,248.38	7,511.38	(16.81)%
EBIT	(770.93)	(1505.14)	48.78%
EBIT (%)	-12.34%	-20.04%
	Services
Revenues	6,322.28	5,201.10	21.56%
EBIT	437.69	392.14	11.62%
EBIT (%)	6.92%	7.54%	-

IV. Consolidated Financial Performance

Companys revenue from operations amounted to Rs. 12,723.11 lakhs during the year ended March 31, 2026, as compared to Rs. 13,003.96 lakhs in the previous year ended March 31, 2025.

Manufacturing revenue is Rs. 6,400.83 lakhs during the year ended March 31, 2026 from Rs. 7,802.86 lakhs during the previous year ended March 31, 2025, a decrease of 17.97% as compare with previous year ended on March 31, 2025. The Profit before interest, depreciation, taxes, amortization and exceptional items amounted to Rs. 467.19 lakhs during the year ended March 31, 2026 as against (Rs. 350.22) lakh in the previous year ended on March 31, 2025.

Loss before tax and exceptional item amounted to Rs. 1,776.24 lakhs (-13.96% of revenue) during the year ended March 31, 2026 as against loss of Rs. 3,068.80 lakhs (-23.60% of revenue) in the previous year ended on March 31, 2025.

Loss after tax and exceptional item is Rs. 2,596.66 lakhs (-10.28% of revenue) during the year ended March 31, 2026 as against Rs. 2,596.66 lakhs (-19.97% of revenue) in the previous year ended March 31, 2025.

KEY FINANCIAL RATIOS (CONSOLE)

Ratios	FY26	FY25	Di_erence
a. Debtors Turnover Ratio	4.72	5.70	-17.19%
b Inventory turnover Ratio	5.28	4.79	10.23%
c. Interest Coverage Ratio1	-0.60	-1.00	40.00%
d Current Ratio	0.29	0.26	11.54%
e. Debt Equity Ratio %2	-13.51	14.56	-192.79%
f Operating Profit Margin %3	3.61%	-2.66%	235.71%
g. Net Profit Margin % or	-10.11%	-19.73%	48.76%
Sector - Specific equivalent ratios, as applicable.4

Remarks on Key Financial Ratios

1 Ratio is improved due to lower losses.

2 Ratio is declined due to negative equity.

3 Ratio is improved due to decrease in cost of goods sold.

4 Ratio is improved due to lower loss as compared to previous year.