Anawil Wire and Engineering Ltd Management Discussions

The following discussion is intended to convey managements perspective on our financial condition and results of operations for the Fiscals ended March 31, 2026, 2025 and 2024. You should read the following discussion and analysis of our financial condition and results of operations in conjunction with our Restated Financial Information and the sections entitled "Summary of Financial Information " and "Restated Financial Information " on page 44 and 168, respectively. This discussion contains forward-looking statements and reflects our current views with respect to future events and our financial performance and involves numerous risks and uncertainties, including, but not limited to, those described in the section entitled "Risk Factors " on page 20 Actual results could differ materially from those contained in any forward-looking statements and for further details regarding forward-looking statements, kindly refer to the section entitled "Forward-Looking Statements " on page 19 Unless otherwise stated or unless the context otherwise requires, the financial information of our Company used in this section has been derived from the Restated Financial Information. Unless noted otherwise, some of the industry related information in this section is obtained or extracted from the Dun & Bradstreet Report (which is a paid report and was commissioned by us solely in connection with the Offer). Our Fiscal year ends on March 31 of each year. Accordingly, unless otherwise stated, all references to a particular Fiscal year are to the 12-month period ended March 31 of that year.

OVERVIEW

We are engaged in the business of manufacturing of windmill towers, with primary focus on the fabrication of towers from heavy and precision steel components customized to meet the specific requirements of client in the wind energy sector. These towers are generally fabricated as tubular steel structures consisting of multiple cylindrical sections. These sections are rolled from heavy steel plates, longitudinally and circumferentially welded, and joined through flanges and bolts during erection at the project site. The weight of an individual tower can vary significantly based on its height and design specifications.

We commenced our commercial operations in April 2021, initially focusing on the fabrication of weldmesh and assembly of boiler accessories and paper machinery parts. Building on this foundation and leveraging our expertise in steel fabrication, we strategically shifted into the wind energy sector in 2023. Since then, we have focused on manufacturing of fabrication components for wind turbine towers. These towers are essential structural components that support wind turbines generators, allowing them to capture wind energy efficiently at optimum heights. The size of the tower depends on the turbine model and site requirements, typically 140 meters in height, designed to withstand diverse climatic conditions. Each tower is manufactured in multiple sections commonly five allowing for transportation by road to the project site.

In FY 2023-24, 2024-25 and 2025-26, we produced 114, 135 and 210 windmill towers, achieving a capacity utilization of 38.00%, 45.00% and 48.17% respectively. We cater our product to marquee customers of Original Equipment Manufacturers (OEMs) of Wind Turbine Generators ("WTG") and companies in renewable energy sector. Currently, our existing facility has the capacity to manufacture 35 windmill towers per month. Further, we commenced operations at our new manufacturing facility in Kutch, Guj arat, in March 2026, which has an additional production capacity of 16 windmill towers per month.

We have two manufacturing facilities in Koppal, Karnataka and Kutch, Gujarat and is spread across 48.05 acres area with an annual capacity of 612 towers. The location is favourably located which enable direct transportation of finished products to assembly sites, port facilities, or end customers, thereby reducing transit time and logistic costs. These facilities are equipped with machines, a laboratory and testing equipment such as Hardness tester, Dial gauges, Flatness and tilt measurement machine, Ultrasonic flaw detector, Profile meter (for dent measurement), Magnaflux magnetic particle inspection (MPI) instruments, GE Go Plus+ (Surface roughness tester), Spectrometer, Digital distance meter, Adhesion Tester (for paint/coating adhesion), Digital Gap Thickness (DGT) gauges etc.to make sure our products meet quality standards. We are an ISO 9001:2015, ISO 14001: 2015, ISO 14001: 2018 and ISO 3834-2: 2021 certified company for manufacture of windmill towers & components and fabrication of heavy structures.

We primarily use Mild Steel (M.S.) plates to manufacture windmill towers and several other materials are also utilized, including shots and grits, paint, welding rods, electric plasma power sources for cutting, oxy-fuel stations, and grinding wheels. Additionally, components such as ladders, lightning protection systems, and platforms are

essential for the internal assembly of the towers. During the Fiscal 2026, Fiscal 2025, and Fiscal 2024, our cost of goods sold (cost of materials consumed, purchase of stock in trade, and changes in inventories of finished goods) was Rs. 4,528.29 lakhs, Rs. 2,365.07 lakhs, and Rs. 1,116.48 lakhs respectively, which represented 30.09%, 20.65%, and 38.81% of our revenue from operations. The raw materials we use in our manufacturing process are primarily sourced from local suppliers in India.

India is the 4th largest wind power market globally and one of the fastest-growing renewable energy markets. The Government aims to achieve 500 GW of installed non-fossil fuel capacity by 2030, including 100 GW from wind energy. As of December 31, 2024, Gujarat (12473.78 MW) and Karnataka (6,731.30 MW) lead in installed wind capacity. (Source:- https://www.ibef.org ).

Our Company is led by Nimish Kumar Rameshchandra Vashi and Ayush Nimish Vashi who are the Promoters and Executive Directors of the Company. Our Promoter, Chairman & Managing Director, Nimish Kumar Rameshchandra Vashi has been associated with the Company since February, 2025 and provide strategic guidance and oversees overall performance of our Company. Further, our Promoter, Whole-Time Director, Ayush Nimish Vashi has been associated with the company since incorporation. He manages division encompassing Accounts and Finance and Secretarial ensuring synchronized and effective functioning across these pivotal areas.

Key Performance Indicators of our Company

Key Financial Performance	31st March 2026	31st March 2025	31st March 2024
Revenue from operations (1)	14,326.69	7,858.86	5,406.65
EBITDA(2)	6,108.90	2,997.57	2,222.28
EBITDA Margin(3)	42.64%	38.14%	41.10%
PAT	3,662.83	1,230.58	439.18
PAT Margin(4)	25.57%	15.66%	8.12%
Net Worth (5)	8,951.16	4,007.59	2,776.75
Return on Net Worth(6)	40.92%	30.71%	15.82%
RoCE (%)(7)	23.05%	21.84%	13.68%

Notes:

1. ‘Revenue from Operations means the Revenue from Operations as appearing in the Restated Financial Statements

2. ‘EBITDA is calculated as Profit before tax + Depreciation + Interest Expenses - Other Income

3. ‘EBITDA Margin is calculated as EBITDA divided by Revenue from Operations

4. ‘PAT Margin is calculated as PAT / revenue from operations.

5. ‘Net worth means Equity share capital + Reserves and surplus (including, Securities Premium, General Reserve and surplus in statement of profit and loss).

6. ‘Return on Net Worth is ratio of Profit after Tax and Net Worth.

7. ‘Return on Capital Employed is calculated as EBIT divided by capital employed, which is defined as shareholders equity plus total borrowings {current & non-current}+ DTL-DTA.

Explanation for KPI metrics

KPI	Explanations
Revenue from Operations	Revenue from Operations is used by our management to track the revenue profile of the business and in turn helps to assess the overall financial performance of our Company and volume of our business
EBITDA	EBITDA provides information regarding the operational efficiency of the business
EBITDA Margin (%)	EBITDA Margin (%) is an indicator of the operational profitability and financial performance of our business
PAT	Profit after tax provides information regarding the overall profitability of the business.
PAT Margin (%)	PAT Margin (%) is an indicator of the overall profitability and financial performance of our business.
Net Worth	Net worth is used by the management to ascertain the total value created by the entity and provides a snapshot of current financial position of the entity.
Return on net worth (%)	Return on Net Worth provides how efficiently our Company leverages its net assets to generate income.
RoCE (%)	RoCE provides how efficiently our Company generates earnings from the capital employed in the business.

Statement of Significant Accounting Policies

For details in respect of Statement of Significant Accounting Policies, please refer to "Annexure IV of Restated Financial Statements" beginning on page 168 of this Red Herring Prospectus.

Factors of Significant Accounting Policies

• General economic and business conditions in the markets in which we operate and in the local, regional, national and international economies;

• Our dependence on the growth of online commerce industry in India and our inability to effectively respond to changing user behaviour on digital platforms

• Under-utilization of our manufacturing capacities and an inability to effectively utilize our expanded and proposed manufacturing capacities could have an adverse effect on our business, prospects, financial performance and cash flows.

• Failure to successfully upgrade our product portfolio, from time to time;

• Any change in government policies resulting in increases in taxes payable by us;

• Our ability to successfully implement strategy, growth and expansion plans and technological initiatives;

• Our ability to retain our key managements persons and other employees;

• Our ability to customize the products based on customers specific needs and preferences;

• Changes in laws and regulations that apply to the industries in which we operate.

• Our failure to keep pace with rapid changes in technology;

• Our ability to make interest and principal payments on our existing debt obligations and satisfy the other covenants contained in our existing debt agreements;

• Inflation, deflation, unanticipated turbulence in interest rates, equity prices or other rates or prices;

• Companys ability to successfully implement its growth strategy and expansion plans;

• failure to comply with regulations prescribed by authorities of the jurisdictions in which we operate;

• Inability to successfully obtain registrations in a timely manner or at all;

• Occurrence of Environmental Problems & Uninsured Losses;

• Conflicts of interest with affiliated companies, the promoter group and other related parties;

• Concentration of ownership among our Promoter;

• Other factors beyond our control.

Discussion on Result of Operations

The following discussion on results of operations should be read in conjunction with the Restated Financial Statements for the financial years ended on March 31,2026, March 31,2024 and March 31, 2023.

Particulars	Forthe year ended 31st Mar26	% of Total Income	For the year ended 31st Mar25	% of Total Income	For the year ended 31st Mar24	% of Total Income
Revenue from operations	14,326.69	99.75%	7858.86	98.98%	5406.65	99.98%
Other Income	35.98	0.25%	80.98	1.02%	1.27	0.02%
Total Income	14,362.68	100%	7939.84	100%	5407.92	100%
Expenses
Cost of Material Consumed	4,731.58	32.94%	2500.72	31.50%	1915.92	35.43%
Purchase Of Stock in Trade	0.00	0%	0.00	0%	0.00	0%
Changes in inventories of finished goods, Stock-In- Trade & Work in progress	-203.30	-1.42%	-135.65	-1.71%	-799.44	-14.78%
Employee benefits Expenses	415.03	2.89%	272.84	3.44%	219.29	4.05%
Finance costs	594.71	4.14%	593.99	7.48%	575.46	10.64%
Depreciation and amortization expense	1,130.14	7.87%	1005.13	12.66%	1134.00	20.97%
Other Expense	3,244.03	22.59%	2215.05	27.90%	1828.33	33.81%
Total Expenses	9912.20	69.01%	6452.08	81.26%	4873.56	90.12%
Profit before exceptional, extraordinary items and tax	4,450.47	30.99%	1487.76	18.74%	534.36	9.88%
Less: Exceptional Items	-		-	-	-	-
Profit before extraordinary items and tax	4,450.47	30.99%	1487.76	18.74%	534.36	9.88%
Extra ordinary items	-		-	-	-
Profit/(Loss) before tax	4,450.47	30.99%	1487.76	18.74%	534.36	9.88%
Tax expenses:
(a) Current tax expense	770.34	5.36%	279.43	3.52%	125.12	2.31%
(b) Earlier Year Tax Adjustments	11.69	0.08%
(c) Deferred tax	5.61	0.04%	(22.25)	-0.28%	(29.94)	-0.55%
Profit/(Loss) for the period After Tax- PAT	3662.83	25.50%	1230.58	15.50%	439.18	8.12%

Revenue from operations:

Revenue from operations mainly consists of Tower Manufacturing and Fabrication of Wind Turbine.

Other Income:

Our other income primarily comprises of Rent Income, Interest Income, Foreign Exchange, Dividend Income and Misc. Income.

Expenses:

Companys expenses consist of Cost of Material Consumed, Purchase of Stock in Trade, Changes in inventories of finished goods, work-in-progress and Stock-in-Trade, Employee benefits expense, Finance costs, Depreciation and amortization and other expenses.

Cost of Material Consumed:

Companys Cost of Material Consumed consist of Opening Stock, Purchases and Closing stock.

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade:

Our changes in the inventory comprises of Changes in inventories of finished goods, work-in-progress and Stock-inTrade.

Employee benefits expense:

Our employee benefits expense comprises of Salaries and Wages, Staff Welfare Expenses, Directors Remuneration, Contribution to PF & Other Funds, Bonus and Gratuity Expense.

Finance Costs:

Our finance cost includes Interest expenses and other borrowing costs.

Depreciation and Amortization Expenses:

Depreciation includes depreciation on Property, Plant & Equipments and Amortization of intangible assets.

Other Expenses:

Our other expenses include Power & Fuel, Fabrication Work, Labour Charges, Freight and forwarding Charges, Site Expenses, Machine Rent Expenses, Refilling Charges, Custom Duty, Packing & Forwarding Charges, Import Clearing & Forwarding Charges, Technical Services, Professional & Legal Fees, Repair and Maintenance, Rent, Rates & Taxes, Security Charges, Selling and Administrative Expenses, Auditor Remuneration, Donation, Insurance expenses, Postage and Courier expenses, Preliminary expenses written off, Miscellaneous Expenses, GST Expense, Printing & Stationary Expenses, Supervision Charges, TDS Late Fees, Foreign Exchange Gain/loss, Office Expense, Testing & Service Charges, Pollution Control Expense, Vehicle Exp, Water Charges, Travelling and Conveyance expenses, Advertisement and Marketing Expenses and ROC Fees.

Financial Year 2026 Compared to Financial Year 2025 (Based on Restated Financial Statements)

Total Income:

Total income for the financial year 2025-26 stood at t 14,362.68 Lakhs as compared to t 7,939.84 Lakhs in financial year 2024-25 representing an increase of 80.89%. Such Increase was due to increase in business operations of the Company.

Revenue from Operations:

The significant increase in revenue during FY 2025-26 was primarily driven by higher order execution at the Companys existing manufacturing facility at Koppal, Karnataka, and was not solely attributable to the commencement of operations at the Gujarat manufacturing unit, which became operational only in March 2026. During FY 2025-26, the Company completed the expansion of Bay-4 at its Koppal manufacturing facility, which enhanced its production capacity and enabled execution of a higher volume of customer orders. The Company also executed pending work orders carried forward from the previous financial year and successfully completed several high-value orders during the year, resulting in higher revenue generation. Further, during FY 2025-26, the Company introduced a third tower model comprising the base tower along with steel plates and internals, thereby expanding its product portfolio. The Company supplied four towers of this model during the year, which also contributed to the increase in revenue.

Although the Gujarat (Kutch) manufacturing facility commenced commercial operations only in March 2026, the Company manufactured and supplied 16 towers from the facility during the year, generating revenue of approximately t877.74 lakhs. Accordingly, while the Gujarat unit contributed incremental revenue towards the end of FY 2025-26, the significant increase in the Companys revenue during the year was primarily.

Other Income:

During the financial year 2025-26, the other income of our company stood at t 35.98 Lakhs as against t 80.98 Lakhs in financial year 2024-25, representing an decrease of 55.57%. The decrease in other income was due to decrease in Misc. Income from t 68.38 lakhs in the FY. 2024-25 to t 0.32 Lakhs in the FY. 2025--26 representing a decrease of 99.53%.

Total Expenses:

T otal expenses for the financial year 2025-26 increased to t 9,912.20 Lakhs as compared to t 6,452.08 Lakhs in financial year 2024-25 representing an increase of 53.63%. Such Increase was due to increase in the volume of business operations of the company.

Cost of material consumed:

The Cost of material consumed for the financial year 2025-26 stood at t 4,731.58 Lakhs against t 2,500.72 Lakhs in the Financial Year 2024-25 representing an increase of 89.21%. The major reason for this increase was due to increase in manufacturing and fabrication activity of towers.

Change in inventories of finished goods, work in progress and stock in trade:

The Change in inventories of finished goods, work in progress and stock in trade for financial year 2025-26 stood at t -203.30 lakhs as compared to t -135.65 lakhs for FY 2024-25. The major reason for this change is due to increase in closing stock of work in progress, stores and spares, scrap from t 935.09 lakhs in FY 2024-25 to t 1,138.38 lakhs in FY 2025-26 resulting in increase by 21.74%

Employee benefits expense:

Our company has incurred t 415.03 lakhs as employee benefit expenses during the FY 2025-26 as compared to t 272.84 lakhs for FY 2024-25 resulting in increase by 52.11 %. The major reason for this increase is due to (i) increase in salary and wages from t 293.39 lakhs in FY 2025-26 from t 193.08 lakhs for FY 2024-25 resulting in increase by 51.95%, (ii) Contribution to Provident Fund and ESIC from t 11.95 lakhs in FY 2024-25 to t 15.65 lakhs in FY 2526 resulting in increase by 30.96%, (iii) Staff welfare expense from t 13.43 lakhs in FY 2024-25 to t 18.40 lakhs in FY 25-26 resulting in increase by 37.01%, (iv) Directors Remuneration from t 14.50 lakhs in FY 24-25 to t 37.50 lakhs in FY 25-26 resulting in increase by 158.62%, (v) Gratuity from t 7.40 lakhs for FY 24-25 to t 10.57 lakhs for FY 25-26 resulting in increase by 42.84%, (vi) leave encashment from t 0.00 lakhs for FY 24-25 to t 6.03 lakhs for FY 25-26 resulting in increase by 100%

Finance costs:

Our company has incurred t 594.71 lakhs as finance cost for FY 25-26 as compare to t 593.99 lakhs for FY 24-25 resulting in increase by 0.12%.

Depreciation and Amortization Expenses:

Depreciation for the financial year 2025-26 stood at t 1130.14 Lakhs as against to 11,005.13 Lakhs in financial year

2024- 25 representing a increase of 12.44%. The major reason for this increase is due to additions in fixed asset for the year.

Other expense:

Our company has incurred t 3,244.03 lakhs as other expenses during the financial year 2025-26 as compared to t 2,215.05 lakhs in the financial year 2024-25 representing an increase of 46.45%. Such increase was due to increase in

(i) Fabrication work from t 893.95 lakhs in FY 2024-25 to t 1,282.41 lakhs in FY 2025-26 representing an increase of 43.45%; (ii) Power & Fuel Expenses from t 309.63 lakhs in FY 2024-25 to t 552.27 lakhs in FY 2025-26 representing an increase of 78.36%; (iii) Labour Charges from t 252.46 lakhs in FY 2024-25 to t 444.27 lakhs in FY

2025- 26 representing an increase of 75.98%; (iv) Site expenses from t 148.18 lakhs in FY 2024-25 to t 191.45 lakhs in FY 2025-26 representing an increase of 29.20%; (v) Rifilling expense from t 129.31 lakhs in FY 2024-25 to t 149.74 lakhs in FY 2025-26 representing an increase of 15.80%; and (vi) freight and forwarding expense from t 26.66 for FY 24-25 to t 104.28 lakhs for FY 25-26 resulting in increase by 291.15%;

Restated Profit/ (Loss) before tax:

Restated Profit before T ax for the financial year 2025-26 was t 4,450.47 Lakhs as compared to Restated profit before tax of t 1,487.76 Lakhs during the financial year 2024-25 which amounts to increase by 199.14%, majorly due to factors as mentioned above.

Restated Profit/ (Loss) after tax:

Restated Profit after Tax for the financial year 2025-26 was t 3,662.83 Lakhs as compared to Restated profit after tax of t 1,230.58 Lakhs during the financial year 2024-25.

PAT Margin in FY26 as compared to FY25

The Companys PAT margin increased to 25.56% in FY 2025-26 from 15.66% in FY 2024-25. The improvement in PAT margin was primarily attributable to higher operating leverage resulting from significant growth in revenue from operations and improved cost efficiencies.

Revenue from operations increased by 82.30%, from t7,858.86 lakhs in FY 2024-25 to t14,326.69 lakhs in FY 202526. While the scale of operations increased significantly, the corresponding increase in operating costs was proportionately lower, resulting in improved profitability.

The key factors contributing to the increase in PAT margin were as follows:

(i) Improved Manufacturing Cost Efficiency: Manufacturing expenses constituted 20.03% of revenue from operations in FY 2025-26 as compared to 25.04% in FY 2024-25. This improvement was primarily attributable to better utilization of manufacturing facilities, improved production efficiencies and higher absorption of fixed manufacturing overheads resulting from increased production volumes.

(ii) Reduction in Finance Cost as a Percentage of Revenue: Finance cost reduced to 4.15% of revenue from operations in FY 2025-26 from 7.56% in FY 2024-25. Although borrowings increased during the year, a significant portion of the borrowing costs relating to the construction of the Companys Manufacturing Unit-II at Kutch, Gujarat was

capitalized in accordance with AS 16 - Borrowing Costs, resulting in a lower finance cost recognised in the Statement of Profit and Loss relative to revenue.

(iii) Lower Depreciation as a Percentage of Revenue: Depreciation and amortisation expense increased marginally from t1005.13 lakhs in FY 2024-25 to ^1130.14 lakhs in FY 2025-26. However, as a percentage of revenue from operations, depreciation reduced from 12.79% in FY 2024-25 to 7.89% in FY 2025-26 due to the substantial increase in revenue during the year.

Accordingly, the Company benefited from significant operating leverage during FY 2025-26, whereby the increase in revenue substantially outpaced the increase in manufacturing, finance and depreciation expenses, resulting in a significant improvement in PAT margin.

Financial Year 2025 Compared to Financial Year 2024 (Based on Restated Financial Statements)

Total Income:

Total income for the financial year 2024-25 stood at t 7,939.84 Lakhs as compared to t 5,407.92 Lakhs in financial year 2023-24 representing an increase of 45.36%. Such Increase was due to increase in business operations of the Company.

Revenue from Operations:

The Company submits that its revenue from operations increased from t5,406.65 lakhs in FY 2023-24 to t7,858.86 lakhs in FY 2024-25, representing a growth of 45.36%. The increase in revenue was primarily attributable to the Companys strategic focus on its core tower manufacturing business, which contributed t7,854.55 lakhs, accounting for 99.95% of the total revenue during FY 2024-25. During the year, the Company consciously reduced its focus on the manufacturing of boiler accessories, paper machinery parts and other non-core products, and concentrated its operational and manufacturing resources on the execution of wind turbine tower orders. Further, the Company witnessed higher order execution and increased customer demand for wind turbine towers during the year, which contributed to the growth in revenue. Accordingly, the increase in revenue in FY 2024-25 was primarily driven by the Companys focused business strategy and improved execution of its tower manufacturing orders.

Other Income:

During the financial year 2024-25, the other income of our company increases to t 80.98 Lakhs as against t 1.27 Lakhs in financial year 2023-24, representing an increase of 6276.38%. The increase in other income was due to increase in Interest Income from t 0.00 lakhs in the FY. 2023-24 as compared to t 12.47 Lakhs in the FY. 2024-25 representing an increase of 100%, and increase in Misc. Income from t 1.27 Lakhs in the FY. 2023-24 as compared to t 68.38 lakhs in FY 2024-25 representing an increase of 5284.25%.

Total Expenses:

Total expenses for the financial year 2024-25 increased to t 6452.08 Lakhs as compared to t 4873.56 Lakhs in financial year 2023-24 representing an increase of 32.39%. Such Increase was due to increase in the volume of business operations of the company.

Cost of material consumed:

The Cost of material consumed for the financial year 2024-25 stood at t 2500.72 Lakhs against t 1915.92 Lakhs in the Financial Year 2023-24 representing an increase of 30.52%.

Change in inventories of finished goods, work in progress and stock in trade:

The Change in inventories of finished goods, work in progress and stock in trade for financial year 2024-25 has been increased as compared to the financial year 2023-24 by 83.03%, which was due to increase in closing stock of finished goods from 0.00 Lakhs in FY. 2023-24 as compared to 81.47 Lakhs in FY. 2024-25 representing an increase of 100%, increase in closing stock of stores and spares from 0.00 lakhs in FY 2023-24 to t 69.44 lakhs in FY 2024-25 representing an increase of 100% and increase in opening stock of WIP from 0.00 lakhs in FY 2023-24 as compared to 799.44 Lakhs in FY 2024-25 representing an increase of 100%.

Employee benefits expense:

Our company has incurred t 272.84 Lakhs as employee benefit expenses during the financials year 2024-25 as compared to t 219.29 Lakhs in the financial year 2023-24 representing increase of 24.42%. Such increase was due to increase in (i) Salaries & Wages from 132.97 lakhs in FY. 2023-24 as compared to t 193.08 Lakhs in FY. 2024-25 which amount to increase of 45.20%; (ii) Bonus from 17.35 lakhs in FY. 2023-24 as compared to t 32.48 Lakhs in

FY. 2024-25 which amount to increase of 87.24%; (iii) Director Remuneration from t 12.00 lakhs in FY. 2023-24 as compared to t 14.50 Lakhs in FY. 2024-25 which amount to increase of 20.83%

Finance costs:

These costs were for the financial Year 2024-25 increased to t 593.99 Lakhs as against t 575.46 Lakhs during the financial year 2023-24, representing an increase of 3.22%. Such increase was due to increase in Interest on Unsecured loans Expenses from 5.44 lakhs in FY. 2023-24 as compared to t 36.31 Lakhs in FY. 2024-25 which amount to increase of 567.91%.

Depreciation and Amortization Expenses:

Depreciation for the financial year 2024-25 stood at t 1005.13 Lakhs as against to t1134.00 Lakhs in financial year 2023- 24 representing a decrease of 11.36%.

Other expense:

Our company has incurred t 2,215.05 lakhs as other expenses during the financial year 2024-25 as compared to t 1,828.33 lakhs in the financial year 2023-24 representing an increase of 21.15%. Such increase was due to increase in

(i) Fabrication work from t 700.71 lakhs in FY 2023-24 to t 893.95 lakhs in FY 2024-25 representing an increase of 27.58%; (ii) Power & Fuel Expenses from t 252.88 lakhs in FY 2023-24 to t 309.63 lakhs in FY 2024-25 representing an increase of 22.44%; (iii) Labour Charges from t 168.19 lakhs in FY 2023-24 to t 252.46 lakhs in FY 2024-25 representing an increase of 50.10%; (iv) Machine Rent Expense from t 134.07 lakhs in FY 2023-24 to t 207.15 lakhs in FY 2024-25 representing an increase of 54.51%; (v) Site expenses from t 104.19 lakhs in FY 2023-24 to t 148.18 lakhs in FY 2024-25 representing an increase of 42.22%; and (vi) Rifilling expense from t 109.51 lakhs in FY 202324 to t 129.31 lakhs in FY 2024-25 representing an increase of 18.08%;

Restated Profit/ (Loss) before tax:

Restated Profit before Tax for the financial year 2024-25 was t 1487.76 Lakhs as compared to Restated profit before tax of t 534.36 Lakhs during the financial year 2023-24 which amounts to increase by 178.42%, majorly due to factors as mentioned above.

Restated Profit/ (Loss) after tax:

Restated Profit after Tax for the financial year 2024-25 was t 1230.58 Lakhs as compared to Restated profit after tax of t 439.18 Lakhs during the financial year 2023-24.

PAT Margin in FY25 as compared to FY24

The Companys PAT margin increased to 15.66% in FY 2024-25 from 8.12% in FY 2023-24. The improvement in PAT margin was primarily attributable to higher operating leverage resulting from significant growth in revenue from operations and improved cost efficiencies.

Revenue from operations increased by 45.36%, from t5,406.65 lakhs in FY 2023-24 to t7,858.86 lakhs in FY 202425. While the scale of operations increased significantly, the corresponding increase in operating costs was proportionately lower, resulting in improved profitability.

The key factors contributing to the increase in PAT margin were as follows:

(i) Improved Manufacturing Cost Efficiency: Manufacturing expenses constituted 25.04% of revenue from operations in FY 2024-25 as compared to 28.20% in FY 2023-24. This improvement was primarily attributable to the Companys increased focus on tower manufacturing and fabrication, better utilization of manufacturing facilities and higher absorption of fixed manufacturing overheads resulting from increased production volumes.

(ii) Reduction in Finance Cost as a Percentage of Revenue: Finance cost reduced to 7.56% of revenue from operations in FY 2024-25 from 10.64% in FY 2023-24. Although finance cost increased marginally in absolute terms, the increase was substantially lower than the growth in revenue, resulting in lower finance cost as a percentage of revenue and contributing to improved profitability.

(iii) Lower Depreciation as a Percentage of Revenue: Depreciation and amortisation expense decreased from 11134.00 lakhs in FY 2023-24 to t1005.13 lakhs in FY 2024-25. Consequently, depreciation as a percentage of revenue reduced from 20.97% in FY 2023-24 to 12.79% in FY 2024-25. The decrease was primarily attributable to the timing of capitalization and commencement of use of newly acquired assets, as depreciation was charged only for the period during which such assets were available for use in accordance with the applicable accounting standards.

(iv) Reduction in Professional and Legal Fees: Professional and legal fees reduced significantly to Rs. 25.23 lakhs in FY 2024-25 from ^ 155.71 lakhs in FY 2023-24. The higher expenditure incurred during FY 2023-24 was primarily attributable to one-time professional and legal expenses. The reduction in such costs during FY 202425 contributed to the improvement in the Companys profitability and PAT margin.

Accordingly, the Company benefited from improved operating leverage during FY 2024-25, whereby the increase in revenue substantially outpaced the increase in manufacturing, finance and depreciation expenses, resulting in a significant improvement in PAT margin.

Information required as per Item (II) (C) (iv) of Part A of Schedule VI to the SEBI Regulations:

An analysis of reasons for the changes in significant items of income and expenditure is given hereunder:

1. Unusual or infrequent events or transactions

There has not been any unusual trend on account of our business activity. Except as disclosed in this Red Herring Prospectus, there are no unusual or infrequent events or transactions in our Company.

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

There are no significant economic changes that may materially affect or likely to affect income from continuing operations.

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

Apart from the risks as disclosed under Section "Risk Factors" beginning on page 20 of this Red Herring Prospectus, in our opinion there are no other known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations.

4. Future changes in relationship between costs and revenues

Other than as described in the sections "Risk Factors", "Our Business" and "Managements Discussion and Analysis of Financial Condition and Results of Operations" on page 20, 112 and 229 respectively, to our knowledge, no future relationship between expenditure and income is expected to have a material adverse impact on our operations and finances.

5. Total turnover of each major industry segment in which our Company operates

Our business activity primarily falls within a single business and geographical segment, i.e. is engaged in the business of manufacturing of towers, as disclosed in "Restated Financial Statements" on page 168, we do not follow any other segment reporting.

6. Status of any publicly announced New Products or Business Segment

Except as disclosed in the Chapter "Our Business" on page 112, our Company has not announced any new product or service.

7. Seasonality of business

Our business is subject to seasonality. For further information, see "Risk Factor", "Industry Overview" and "Our Business" on page 20, 94 and 112, respectively.

8. Dependence on single or few customers

We are dependent upon single or few customers. For further information, see "Risk Factors" on page 20 of this Red Herring Prospectus.

9. Competitive conditions

Competitive conditions are as described under the Chapters "Industry Overview" and "Our Business" beginning on page 94 and 112 respectively of this Red Herring Prospectus.

10. Details of material developments after the date of last balance sheet i.e. March 31, 2026.

After the date of last Balance sheet i.e. March 31,2026, the following material events have occurred after the last audited period:

(i) The Offer has been authorized by our Board pursuant to a resolution passed at its meeting held on June 13, 2026 and by our Shareholders pursuant to a special resolution passed pursuant to Section 62(1)(c) of the Companies Act, 2013 at the Extra Ordinary General meeting held on June 15, 2026 to raise funds by making an Initial Public Offering.

(ii) Our Company has approved the Audited Financial statements for the period ended on March 31, 2026 in the Board meeting dated June 13, 2026.

(iii) The Company has approved the Restated Financial Statements for the financial year ending March 31 2026, March 31, 2025 and March 31, 2024 in the Board meeting dated June 19, 2026.

(iv) Our Company has approved the Draft Red Herring Prospectus vide resolution in the Board Meeting dated June 25, 2026

(v) Our Company has approved this Red Herring Prospectus vide resolution in the Board Meeting dated July 28, 2026