Alliance Integrated Metaliks Ltd Management Discussions

This Management Discussion and Analysis presents the economic and industry environment relevant to the Company during FY 2025-26, covering global and Indian economic developments, infrastructure development, the Indian steel industry, Government initiatives supporting industrial and steel-sector growth, and developments in the Indian steel fabrication industry.

1. INDIAN ECONOMY OVERVIEW

Global Growth

Global growth is projected at 3.3% in 2026, fully recovering from the April 2025 tariff-related downgrade and returning to the level projected in January 2025. Advanced economies are expected to grow at 1.8%, driven largely by continued resilience in the United States, while emerging market and developing economies are projected to expand by 4.2%. The global economic environment remained uneven and regionally divergent, reflecting continued trade uncertainty, tight financial conditions and geopolitical developments.

Indias Economic Performance

The Indian economy continued to demonstrate strong resilience and remained one of the fastest-growing major economies globally during FY 2025-26. According to the estimates compiled for the Companys report, Indias real GDP growth stood at around 7.7%, supported by robust domestic consumption, investment activity and continued policy support. Economic activity remained resilient despite global uncertainties, geopolitical developments and volatility in international commodity and financial markets.

Domestic demand remained a key driver of economic activity. Private consumption continued to strengthen, while investment activity was supported by public capital expenditure and improving private-sector investment sentiment. Gross Fixed Capital Formation accounted for around 30% of GDP in FY 2025-26, reflecting continued investment activity. Industrial performance remained positive, with manufacturing emerging as an important contributor to economic activity.

The economic environment was further supported by continued policy emphasis on infrastructure, manufacturing and investment. These developments are particularly relevant to capital-intensive sectors such as construction, engineering, steel, fabrication, logistics and related manufacturing activities.

Indias industrial environment remained supportive during FY 2025-26. Domestic steel demand was estimated to grow by 9–10% in 2025, as per ICRA. According to the Ministry of Steel, finished steel consumption reached approximately 164 MT in FY 2025-26, registering growth of around 7–8%, driven by strong domestic demand from infrastructure, construction, railways and manufacturing sectors.

The machine tool industry was literally the nuts and bolts of the manufacturing industry in India. Today, technology has stimulated innovation with digital transformation a key aspect in gaining an edge in this highly competitive market. India is rapidly positioning itself as a global manufacturing hub, especially in electronics, fuelled by supportive policies and a skilled workforce. Value addition in electronics has risen from 30% to 70% and is projected to touch 90% by FY27.

The Indian steel fabrication industry is a critical segment of the countrys Manufacturing and infrastructure ecosystem. It involves the cutting, bending, assembling, and processing of steel to produce structures, machinery, and components used across diverse sectors such as construction, automotive, power, oil & gas, shipbuilding, railways, and defence.

SOURCE: https://www.ibef.org

2. INFRASTRUCTURE SECTOR – DEVELOPMENTS

Infrastructure development remained a major driver of Indias economic and industrial activity during FY 2025-26. Sustained Government expenditure on roads, railways, ports, logistics, power, urban development, digital connectivity and clean energy continued to support activity across the broader industrial ecosystem.

Indias infrastructure sector is emerging as an important investment destination, with Budget 2026 indicating investment opportunities of approximately Rs. 15.39 lakh crore (US$175 billion) over seven years across transport, digital infrastructure, clean energy and urban development. The continued focus on infrastructure creation is strengthening connectivity and supporting industrial and commercial activity across regions.

The Governments sustained investment in roads, highways, railways, ports, logistics, urban infrastructure, power and digital infrastructure is strengthening the countrys connectivity and supply-chain capabilities. Expansion of transport and logistics networks facilitates the movement of raw materials and finished goods and supports greater integration of domestic markets.

Infrastructure and construction projects are major consumers of steel and fabricated products. Government projects are estimated to account for approximately 25–30% of steel usage, highlighting the close linkage between public infrastructure spending and domestic steel demand. Steel remains a critical input for roads, bridges, railways, buildings, industrial structures, power projects, engineering applications and other large-scale infrastructure assets.

A. Integrated and Multimodal Infrastructure

Infrastructure development is increasingly being undertaken through an integrated and multimodal approach. PM GatiShakti and the National Logistics Policy focus on improving coordination among different transport modes and infrastructure agencies, enhancing connectivity and reducing logistics bottlenecks. Development of industrial corridors, logistics infrastructure, urban mobility systems and digital networks is supporting the broader manufacturing and infrastructure ecosystem.

B. Key Infrastructure Areas

The infrastructure development landscape during the period encompassed highways and road connectivity, railway modernisation, ports and logistics, aviation, power and renewable energy, urban infrastructure, digital connectivity and industrial infrastructure. These areas collectively contribute to improved mobility, logistics efficiency, manufacturing competitiveness and demand for steel-intensive products.

The infrastructure outlook for India is promising, with several factors contributing to its growth.:

Economic Growth: Indias robust economic growth will continue to drive infrastructure development, attracting both domestic and foreign investments.

Technological Advancements: The integration of advanced technologies in infrastructure projects will enhance efficiency, reduce costs, and improve service delivery.

Policy Reforms: Continued policy support and regulatory reforms will create a favorable environment for infrastructure investments and public-private partnerships.

Sustainable Development: A focus on sustainable and green infrastructure will ensure long-term growth while addressing environmental concerns.

Urbanization: Rapid urbanization will necessitate the development of smart cities, affordable housing, and improved urban infrastructure.

Rural Development: Investments in rural infrastructure will enhance connectivity, support agriculture, and improve the quality of life in rural areas.

SOURCE: https://www.ibef.org

3. INDIAN STEEL INDUSTRY – PERFORMANCE AND DEVELOPMENTS

The Indian steel industry remained a critical component of the countrys infrastructure and industrial development during FY 2025-26. Domestic demand was supported by infrastructure development, construction, railways, manufacturing, automobiles, power and other capital-intensive sectors.

India continued to remain the worlds second-largest crude steel producer. During FY 2025-26, crude steel production reached approximately 168.4 MT, while finished steel consumption reached approximately 163.7–164 MT, reflecting continued strength in domestic demand. The growth in steel consumption was supported by infrastructure, construction, railways and manufacturing activity.

Indias steel capacity also continued to expand, moving towards approximately 220 MT. The National Steel Policy, 2017 provides a long-term framework for the development of a globally competitive steel industry and targets steel- digital infrastructure, clean energy and urban development. The continued focus on infrastructure creation is strengthening connectivity and supporting industrial and commercial activity across regions.

The Governments sustained investment in roads, highways, railways, ports, logistics, urban infrastructure, power and digital infrastructure is strengthening the countrys connectivity and supply-chain capabilities. Expansion of transport and logistics networks facilitates the movement of raw materials and finished goods and supports greater integration of domestic markets.

Infrastructure and construction projects are major consumers of steel and fabricated products. Government projects are estimated to account for approximately 25-30% of steel usage, highlighting the close linkage between public infrastructure spending and domestic steel demand. Steel remains a critical input for roads, bridges, railways, buildings, industrial structures, power projects, engineering applications and other large-scale infrastructure assets.

A. Integrated and Multimodal Infrastructure

Infrastructure development is increasingly being undertaken through an integrated and multimodal approach. PM GatiShakti and the National Logistics Policy focus on improving coordination among different transport modes and infrastructure agencies, enhancing connectivity and reducing logistics bottlenecks. Development of industrial corridors, logistics infrastructure, urban mobility systems and digital networks is supporting the broader manufacturing and infrastructure ecosystem.

B. Key Infrastructure Areas

The infrastructure development landscape during the period encompassed highways and road connectivity, railway modernisation, ports and logistics, aviation, power and renewable energy, urban infrastructure, digital connectivity and industrial infrastructure. These areas collectively contribute to improved mobility, logistics efficiency, manufacturing competitiveness and demand for steel-intensive products.

The infrastructure outlook for India is promising, with several factors contributing to its growth:.

Economic Growth: Indias robust economic growth will continue to drive infrastructure development, attracting both domestic and foreign investments.

Technological Advancements: The integration of advanced technologies in infrastructure projects will enhance efficiency, reduce costs, and improve service delivery.

Policy Reforms: Continued policy support and regulatory reforms will create a favorable environment for infrastructure investments and public-private partnerships.

Sustainable Development: A focus on sustainable and green infrastructure will ensure long-term growth while addressing environmental concerns.

Urbanization: Rapid urbanization will necessitate the development of smart cities, affordable housing, and improved urban infrastructure.

Rural Development: Investments in rural infrastructure will enhance connectivity, support agriculture, and improve the quality of life in rural areas.

SOURCE: https://www.ibef.org

3. INDIAN STEEL INDUSTRY - PERFORMANCE AND DEVELOPMENTS

The Indian steel industry remained a critical component of the countrys infrastructure and industrial development during FY 2025-26. Domestic demand was supported by infrastructure development, construction, railways, manufacturing, automobiles, power and other capital-intensive sectors.

India continued to remain the worlds second-largest crude steel producer. During FY 2025-26, crude steel production reached approximately 168.4 MT, while finished steel consumption reached approximately 163.7-164 MT, reflecting continued strength in domestic demand. The growth in steel consumption was supported by infrastructure, construction, railways and manufacturing activity.

Indias steel capacity also continued to expand, moving towards approximately 220 MT. The National Steel Policy, 2017 provides a long-term framework for the development of a globally competitive steel industry and targets steel

making capacity of 300 MT and per-capita steel consumption of 160 kg by 2030-31. This policy framework has supported investment in capacity expansion, modernisation and downstream steel facilities.

Demand Drivers and Industry Developments

Steel is a critical input for roads, bridges, railways, buildings, industrial plants, power projects, renewable-energy structures, automobiles and engineering applications. The continued expansion of infrastructure and manufacturing therefore has a direct bearing on domestic steel consumption. Increasing emphasis on domestic manufacturing and localisation is also supporting the development of downstream steel processing and value-added applications.

Value Addition, Technology and Sustainability

The steel sector is increasingly focused on specialty and high-value steel products, process efficiency, automation, quality improvement, recycling, energy efficiency and lower-carbon production technologies. These developments are shaping the evolution of the domestic steel value chain and encouraging investment in modern production and downstream capabilities.

4. GOVERNMENT INITIATIVES TO BOOST INDUSTRIAL GROWTH, INFRASTRUCTURE AND STEEL

The Government of India continues to implement a broad policy framework aimed at strengthening the industrial ecosystem, promoting domestic manufacturing, attracting investments, improving infrastructure and enhancing Indias competitiveness in global markets. India is experiencing a blitzkrieg upgrade in its infrastructure, driven by increased government investment and development initiatives. There are significant advancements in Indias transportation networks, including roads, railways, aviation, and waterways, and their impact on the countrys economic growth. The major initiatives relevant to the sectors covered in this report are as follows:

• Make in India and Ease of Doing Business reforms: support domestic manufacturing, improve the investment environment and reduce regulatory and compliance barriers.

• Start-up India: promote entrepreneurship, innovation and the development of new business models and technologies.

• PM GatiShakti and National Logistics Policy: promote integrated and multimodal infrastructure planning, improve connectivity and enhance logistics efficiency.

• National Industrial Corridor Programme: support the development of modern industrial infrastructure, industrial clusters and manufacturing ecosystems.

• Production Linked Incentive (PLI) Schemes: encourage domestic manufacturing, attract investment and strengthen integration with global value chains. As per the information compiled for this report, PLI schemes covering 14 sectors had attracted more than ¹ 2.40 lakh crore of actual investment as of March 31, 2026.

• National Steel Policy, 2017: provide the long-term framework for a globally competitive steel industry and envisage steel-making capacity of 300 MT and per-capita steel consumption of 160 kg by 2030-31.

• PLI Scheme for Specialty Steel: encourage investment in high-value and technologically advanced steel products and reduce dependence on imports in specialised applications.

• Domestic manufacturing and procurement measures: promote the use of domestically manufactured iron and steel in Government procurement and strengthen domestic value addition.

• Steel Import Monitoring System (SIMS) and trade measures: monitor steel imports, improve market transparency and address unfair trade practices.

• Green Steel and sustainability initiatives: support energy efficiency, renewable energy, green hydrogen, recycling and other low-carbon technologies in the steel value chain.

• Steel Research and Technology Mission of India (SRTMI): support industry-led research, innovation, productivity improvement and advanced technologies for the steel industry.

• Raw material security measures: support the availability and security of critical inputs, including coking coal, and strengthen domestic steel supply chains.

5. INDIAN STEEL FABRICATION INDUSTRY AND DEVELOPMENTS

The Indian steel fabrication industry remained an important beneficiary of the countrys infrastructure and industrial activity during FY 2025-26. Demand for fabricated steel products continued to be supported by investments in infrastructure, construction, railways, power, manufacturing, transportation, warehousing and other industrial projects. The sustained expansion of these sectors provided a favourable environment for organised steel fabricators and engineering companies.

The growth in domestic steel consumption and the expansion of infrastructure and manufacturing capacity are creating opportunities for downstream fabricators across structural steel, heavy engineering, industrial buildings, equipment supports, transportation-related structures, power projects and other engineered applications. Increasing emphasis on domestic sourcing and localisation is also supporting the development of downstream capabilities and vendor ecosystems.

Technological advancement and quality consciousness are becoming increasingly important within the fabrication industry. Fabricators are progressively adopting modern welding and cutting technologies, computer-aided design, automated processes, digital planning, improved quality-control systems and better material utilisation to enhance productivity, precision and cost competitiveness.

The fabrication industry is also being influenced by sustainability considerations. Increasing use of recyclable steel, energy-efficient processes, waste reduction and low-carbon materials is becoming more relevant as customers and project owners place greater emphasis on environmental performance and responsible sourcing.

During FY 2025-26, the combination of infrastructure activity, domestic steel consumption, industrial development and increased emphasis on domestic manufacturing created a supportive environment for the steel fabrication sector. The sector remained closely linked with developments in construction, transportation, power, engineering and industrial projects.

Sectoral Developments During FY 2025-26

The principal developments influencing the steel fabrication industry during the year included continued infrastructure- led demand, expansion of domestic steel capacity, higher domestic steel consumption, increased attention to value- added and specialty steel products, adoption of improved fabrication technologies and greater emphasis on quality, efficiency and sustainability. These developments strengthened the linkage between the upstream steel industry and downstream fabrication and engineering activities.

AIML doesnt have much competition in organized sector but same time small players in Market are giving tough competition for simple bridges which are in bulk, however AIML has potential to capture a reasonable share of the business and turn it to its advantage.

AIML is an approved vendor with RDSO, Delhi Metro, and NHAI.

Over the years, the Company has become an established player for large projects by executing steel bridges for NHAI, NHIDCL, DFCC, and Railways. It has also successfully undertaken projects in collaboration with reputed private contractors such as L&T, Tata Projects, ShapoorjiPallonji, APCO, SP Singla, and Megha Constructions.

In infrastructure applications such as Road/Rail/Metro bridges and spans, safety during and after erection of heavy structures has come into focus due to certain recent mishaps. This has led to an increasingly greater preference for factory made structures, as opposed to site fabrication, as the former are made in a quality controlled environment.

Over the years, the Company has become an established player for large projects by executing steel bridges for NHAI, NHIDCL, DFCC, and Railways. It has also successfully undertaken projects in collaboration with reputed private contractors such as L&T, Tata Projects, ShapoorjiPallonji, APCO, SP Singla, and Megha Constructions.

In infrastructure applications such as Road/Rail/Metro bridges and spans, safety during and after erection of heavy structures has come into focus due to certain recent mishaps. This has led to an increasingly greater preference for factory made structures, as opposed to site fabrication, as the former are made in a quality controlled environment.

Source Note

India Brand Equity Foundation (IBEF), Press Information Bureau (PIB), Ministry of Steel-related information and industry estimates referred to therein.

6. OPPORTUNITIES & THREATS

AIML: Poised to Capitalise on the Opportunity

At AIML, we view these macro tailwinds not as background noise, but as the very canvas on which we are shaping our future. During Financial Year 2026, we executed landmark projects — including metro and railway bridges, expressway overpasses, and long-span structures — demonstrating our ability to handle scale, complexity, and precision.

We are proud to be an approved partner to institutions of national importance such as RDSO, Delhi Metro, NHAI, and NHIDCL, as well as trusted collaborators of leading EPC players including DRAIPL, L&T, Tata Projects, ShapoorjiPallonji, APCO, SP Singla, and Megha Constructions.

AIMLs evolution from a conventional fabricator to a nation-building partner delivering complex truss, cable-stayed, and metro bridges.

Recently AIML has been approached by EPC Companies Like Ahluwalia Constructions, Everscon-Sindhuja JV, for Steel Structure requirements for Modernization of Railway Stations like, Prayagraj, Faridabad, Ghaziabad, Jalandhar Cantt, Chandigarh etc, who are responsible for modernizing of these Stations with more Passenger facilities. Scope of Steel Superstructure for these Stations is estimated to be approx. 90,000 MT and Enabling Work of approximately 30,000 MT.

Another Area of interest of AIML is Supplies to Large Exhibition Halls, Stadiums and Airport Structures where increase in demand has been seen.

With the announcement of New Expressways by the Indian Government significant opportunities in the Steel Bridge sector has opened up.

Despite challenges of High Steel Prices and Fuel prices, AIML is in a position to contribute significantly for this requirement with its specialized knowledge and technical expertise required for manufacture and supply of heavy structures and equipment related to power plants, roads & railways, bridges, steel plants and the oil and gas sector.

With stabilizing efforts of the GOI, need of various large scale infra projects the need for more roads, bridges and metro & rail lines is certain, thereby potentially opening up some good opportunities for AIML.

The Company has now graduated from making simple Plate girders to Complex Bridges like Truss bridge and Cable stay bridges and remains focused on the following growth areas.

Steel Bridgesfor Metro Projects

• India continues its metro expansion fervently, with Jaipur, Ahmedabad, Nagpur, Lucknow, Pune, Patna, Mumbai, Agra, and Kanpur actively setting up new lines or extending existing corridors. Rapid developments in emerging networks like Patna, Pune, Agra, Bhopal, Indore, Meerut, and Suratcollectively moving Indias total metro network well into global top ranks.

• Noida Aqua Line Extensions

• Kolkata Metro - Yellow Line Safety Clearance

• Mumbai Metro Line 11 (Wadala Depot to Gateway of India)

Indian Railways

• Indian Railways is set for a major overhaul, with plans to introduce 1,000 new trains in five years and launch bullet train services by 2027. The government aims to boost capacity, cut costs, and improve passenger experience, investing heavily in infrastructure and manufacturing.

• The Indian Railways and the Union Cabinet approved 7 major rail projects in August 2023, costing approximately Rs. 32,500 crore, adding about 2,339 km to the network across 9 states, including UP, Bihar, Telangana, Maharashtra, Odisha, and others

• In Himachal Pradesh, projects like Bhanupalli-Bilaspur-Beri, Chandigarh-Baddi, and Nangal-Talwara are underway. The Bhanupalli-Bilaspur-Beri line has seen cost escalation to Rs. 6,753 crore (with Rs. 2,583 crore share by HP), expected completion by December 31,2027. The Chandigarh-Baddi line (30.28 km, Rs. 1,540 crore) is set to finish by April 30, 2026.

• Indian Railways has huge demand forit severex panding new rail routes.

• Indian Railways is Expanding its reach to Himachal, Uttarakhad, J&K, Laddakh, Arunachal Pradesh which will need about 1,50,000 tons of steels uper structures.

• States of Eastern UP and Bihar were declared for major revamp in Bridges adding approx. 3,00,000 MtrequirementsthisregionAlonemainlyoverriverGangaandothermajortributaries.

Road Projects

• With More and More Express ways being announce dore pansion of carriage ways being done, there is Huge demand of ROB/RUBs by Tier-1 Road making EPC companies

• NHAI has mandated the construction of Foot Over Bridges (FOBs) at regular intervals and near critical locations such as hospitals and schools; multiple FOBs are now under construction across key highways

• New expressway projects—such as the Ganga Expressway, Raxaul-Haldia corridor, Amritsar-Jamnagar route, and Gorakhpur-Siliguri link—are set to dramatically increase the future demand for steel bridges and related infrastructure.

Thermal Power Plant Projects

• Many of the Existing plant shad only ESP installed and with stricter norms FGD have become mandatory thus these units need structures for FGD, hence the demand is being expected.

Cement and Steel Plant expansion Projects

• Few Cements Plants and Steel are going in Expansion and AIML has started looking for the possibility of supplies of Structure and Equipment to these plants

7. AIML: STRATEGY AND OUTLOOK

Looking Ahead: Vision 2030

The next five years represent a defining chapter for AIML. Our strategy is anchored in four pillars:

1. Deepening Infrastructure Play

o Expanding presence in railways, metros, expressways, and urban transport. o Targeting opportunities in high-growth corridors like UP, Bihar, Maharashtra, and the North-East.

2. Diversification into New Segments

o Exploring large exhibition halls, airport terminals, and industrial structures. o Positioning for supplies to steel and cement plant expansions and thermal power retrofits.

3. Technology and Process Excellence

o Transitioning from batch to line production with advanced CNC equipment. o Reducing trial assembly times through digital inspections and mark-no systems. o Leveraging automation to enhance quality and safety.

4. Financial and Organisational Strengthening

o Pursuing a more disciplined approach to cash flows, project milestones, and working capital. o Nurturing our people through skilling, inclusion, and a culture of excellence.

Our Purpose: Building the Future of India

As India marches towards its vision of becoming a $5 trillion economy by 2027 and a developed nation by 2047 (Viksit Bharat), the role of infrastructure will be central. Steel bridges, metro networks, power plants, and industrial structures are not just projects for AIML — they are symbols of progress, resilience, and pride.

AIML stands committed to this journey. With a blend of engineering expertise, execution excellence, and visionary ambition, we are poised not only to participate in Indias infrastructure renaissance but to help shape it.

AIMLs growth strategy for next 1-2 years will centered on:

OPERATIONS

1. Process - Since orders are repetitive, operations strategy will be changed from batch production to line production with some technological fixtures and processes in place

2. No Trial Assly - Cutting down Trial assembly time by switching to Mark No inspection and clearing the jobs

3. New Equipment - New low cost small equipments will be added to supplement the CNC lines, thus balancing the capacities of critical processes

4. Change the Working hands model from more of wages based to PMT base

5. Expansion of Fabrication at Sites MARKETING

1. With it scredentials of Large Steels pans, AIML will target projects which need more number of repeated orders.

2. Identify and target large multispan projects from Prebidding stage its elf to lock tentative Orders

3. New orders to be negotiated with more assured Payment terms.

4. Improve CASH Flow by proposing stage payments

5. Comprehensive focus on Orders with Erection shall be there, as orders with erection have better margins.

OFFERINGS

AIML offers a fully integrated one stop shop for Heavy Fabrication

> Design

> Detailed engineering

> Manufacturing - Fully automated European lines

> Finishing

> Erection and handover at site

We have supplied critical structures to industries ranging from Power, Railways, Roads, Metros and Industrial and Residential.

The Company has now graduated from making simple Plate girders to Complex Bridges like Truss bridge and Cable stay bridge sand remains focused on the following growth areas.

Details of Few Important Orders Completed / Undertaken in 2025-26

• RLDA Station Redevelopment Project at New Ahmedabad

• Structural components like CSBG (Composite Steel Box Girders) for viaduct and bridge structures on this high-speed rail corridor.

• Network Arch Bridge project in New Delhi.

• Scoop Structure project for Indian Oil Corporation Limited (IOCL), Faridabad

RLDA Station Redevelopment Project at New Ahmedabad

• Project undertaken during FY 25-26, structural steel works for the RLDA Station Redevelopment Project at New Ahmedabad.

• The project is part of the transformation of the station into a modern, world-class transportation hub with enhanced passenger amenities.

• The redevelopment includes large-span passenger concourses, modern facilities and integrated commercial/ retail spaces.

• AIML contributed its expertise in structural steel fabrication for the project.

• The project involved execution of steel structures requiring high levels of quality, dimensional accuracy and coordination.

• Strong emphasis was placed on safety, quality assurance and adherence to project schedules.

• Successful execution demonstrates AIMLs capability in delivering large-scale railway and infrastructure steel projects.

Network Arch Bridge - New Delhi

• Successfully completed structural steel works for a Network Arch Bridge project in New Delhi.

• The project involved execution of a technically challenging network arch bridge structure requiring precise fabrication and erection.

• AIML undertook structural steel works with emphasis on accuracy, alignment and dimensional control.

• The complex arch and hanger arrangement required careful planning during fabrication, transportation, assembly and erection.

• Execution was carried out in accordance with approved drawings and specified quality and safety requirements.

• The project reflects AIMLs expertise in handling complex bridge structures and specialized steel erection works.

• Successful completion further strengthens AIMLs credentials in major railway and infrastructure projects

IOCL - Scoop Structure, Faridabad

• Scoop Structure project for Indian Oil Corporation Limited (IOCL), Faridabad is being implemented.

• The project involved fabrication and erection of a specialized structural steel scoop arrangement.

• AIML executed the works with a strong focus on fabrication accuracy, structural integrity and quality control.

• The project required careful planning of fabrication, material handling, and transportation and site erection activities.

• Dimensional checks and quality inspections were undertaken to ensure compliance with the required project specifications.

• Erection activities were executed with emphasis on safe working practices and coordination with site operations.

• Successful completion demonstrates AIMLs capability in executing specialized industrial steel structures for major organizations such as IOCL.

8. RISK AND CONCERNS

The Company is currently address in g the following risks and concerns through appropriater is kmitigation measure sand strategies:

Price Increase in Inputs: Due to substantial increase in Diesel costs and in Steel and Metal costs, few inputs like consumables, Paint, cutting inserts, Metalizing wire etc has seen an increase. To mitigate the same in long termim proving of efficiency of processes and out put is in focus + New RFQs are being quoted with increased rates.

Strategic Risks: Strategic risks refer to those associated with the long-term strategy and plans of the Company, including risks related to the macro environment in which the Company operates. However, the Company has adopted a focused approach and has employed various means to mitigate the risk.

Increased Steel prices is one of the key risks that the Company faces at this stage.

To hedge the same in 2025-26 the order being book edare only offree issued steel by customers.

Operational Risks: Operational risks refer to risks impacting the operations of the Company. These include risks associated with the supply chain, employee productivity, health and safety of employees and environmental impact,and risks to business reputation. The Company is exposed to various risks which may impact the Companys reputation such as labour relations, product mix, innovation sand effective deployment of technology.

The Company closely monitors the developments in the supply chain and takes effective steps to mitigate all operational risks.

Financial Risks: Liquidity constraint, which arose due to unfavorable market conditions in infrastructure space has affected the Companys performance. This has resulted in the Company not being able to meet it stoits lenders as also non-availability of adequate non -fund based working capital lines has impacted in exploring new avenues for orders.This industry having long gestation period requires huge working capital facilities.

To rectify the situation, the Company has approached its lenders for restructuring of its debt and One Time Settlement.

Legal and Compliance Risks: Legal and Compliance risks refer to risks arising from the outcome of legal proceedings and government and/ or regulatory action, which could result in additional costs. The Company is subject to various laws, regulation sand contractual commitments.

AIML has policies, systems and procedure stoen force substantial compliance in this respect.

9. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

AIML has implemented a robust internal control framework designed to safeguard assets, ensure regulatory compliance, and maintain operational efficiency across its growing business.AIML is committed to maintaining the highest standards of corporate governance and believes that a strong internal control framework is one of the most important pillars of corporate governance.

In-line with its philosophy and tenets, the Company has put in place adequate systems of internal control commensurate with its size and the nature of its operations. The systems have been designed to provide reasonable assurance with regard to recording and providing reliable financial and operational information complying with applicable statutes, safeguarding of assets, executing transactions with proper authorisations and ensuring compliance of corporate policies.

AIML ensures that internal audit is conducted by a reputed firm having considerable experience in the sector on a regular basis. These audit reports are submitted to the Audit Committee which reviews it and takes note of the remedial measures taken by the concerned departmental heads with reference to the audit observations.

The Company understands that with expanding operations and a constant evolution of technology, an effectiveinternal control system is very important. AIML is committed to maintaining the highest standards of corporategovernance and believes that a strong internal control framework is one of the most important pillars of corporategovernance.

In-line with its philosophy and tenets, the Company has put in placead equate systems of internal control commen surate with its size and the nature of its operations.Thesystemshavebeendesignedtoprovidereasonableassurance with regard to recording and providing reliable financial and operational information complying with applicable statutes, safe guarding of assets, executing transactions with proper authorisations and ensuring compliance of corporate policies.

AIML ensures that internal audit is conducted by a reputed firm having considerable experience in the sector on aregular basis. These audit reports are submitted to the Audit Committee which reviews it and takes note of the remedial measure staken by the concerned departmental heads with reference to the audit observations.

10. FINANCIAL PERFORMANCE WITH REPSECT TO OPERATIONAL PERFORMANCE

During the annual year ended 31st March, 2026, the Company generated revenues of Rs.7,550.41 Lakhs as compared to Rs. 8,975.65 Lakhs in the previous financial year. EBITDA stood at Rs. 630.85 Lakhs as compared to Rs. 2170.34 Lakhs in previous financial year.

PARTICULARS	F.Y- 2025-26	F.Y- 2024-25	Year to Year Change	Explanation
Debtors Turnover	2.37	2.67	(1.87)%	Slower realization of receivables.
Inventory Turnover	2.68	4.53	41.78%	Slower inventory movement Due Bulk buying of RM.
Current Ratio	0.14	0.14	Stable	Marginal Changes
Debt Equity Ratio	0.94	0.84	11.07%	Increased due to non repayment of Over due loan.
Operating Profit Margin (%)	8	24	(16%)	Decline in erection segment sales
Net Profit Margin (%)	-1.26	(0.81)	(56.06)%	Net Margin decline to high financial Expenses and Decline in Sales of service segments.

A number of the major Indian infrastructure projects in the markets served by AIML have already been installed and commissioned over the last few years. This has enabled the Company to benefit from the utilization of installed capacity, while also diversifying into a few new business segments to strengthen its revenue base.

During the current financial year, AIML successfully erected 7,406 MT of bridges at multiple locations across India, reflecting its strong execution capabilities and consistent project delivery.

AIML monitors its financial position regularly and deploys a robust cash management system. The Company has also been able to arrange adequate liquidity at an optimum cost to meet its business and liquidity requirements. AIML would like to thank the financial institutions, shareholders and other stakeholders for their continuous support.

11. DEBT POSITION

As of 31st March, 2026, the Company had total debt of Rs. 58,114.41 Lakhs.

12. SHAREHOLDERS FUNDS AND NET WORTH

The authorized share capital of the Company as at 31st March, 2026 stood at Rs. 100 Crore divided into 70,00,00,000 equity shares of Rs. 1 each and 3,00,00,000 Preference shares of Rs. 10/- each. The paid up equity share capital as of 31st March, 2026 was Rs. 39,49.50 Lacs divided into 39,49,50,000 equity shares of Rs. 1/- each.

Net Worth of the Company as on 31st March 2026 is Rs. (35,900.70) Lakhs.

13. HUMAN RESOURCES AND INDUSTRIAL RELATIONS

For AIML, employees are regarded as the cornerstone of the Companys continued growth and long-term success. AIMLrecognises that its ambition to become a more efficient relies on the commitment and expertise of its workforce. Employees benefit from extensive learning and career development opportunities, while a strong emphasis on diversity and inclusion creates a culture of empowerment.

AIML is deeply committed to fostering a supportive, inclusive, and performance-driven work environment where employees are empowered to achieve both personal aspirations and professional excellence.

AIML has consistently focused on recruiting and onboarding the best talent from industry with the objective to generate superior performance. The Company continued to nurture a supportive and a safe working environment. AIML has always enjoyed strong industrial relations. The company has a systematic grievance redressal system to further strengthen these relationships. This system encourages employees to share their views and opinion with the management. Based on periodic feedback and surveys employee friendly policies have been put in place to ensure greater employee satisfaction. High level of Employee engagement is maintained through various programs, many of them which entail a high level of involvement with the families. The Directors would like to place on record their appreciation and recognition towards all its employees who continue to exude confidence and commitment toward the Company.

CAUTION STATEMENT

The above mentioned statements are only ‘forward looking statements based on certain assumptions and expectations. The Companys actual performance could differ materially from those expressed/projected depending upon changes in various factors. The Company does not assume any responsibility to any change(s) in forward looking statements, on the basis of subsequent developments, information or events etc.

Important developments that could affect the Companys operations include a downward trend in the domestic industry, competition, rise in input costs, exchange rate fluctuations, and significant changes in the political and economic environment in India, environmental standards, tax laws, litigation and labour relations.