ANB Metal Cast Ltd Management Discussions

1. INDUSTRY STRUCTURE AND DEVELOPMENTS

Global Economic and Industry Overview

Aluminium is one of the most widely used non-ferrous metals globally owing to its lightweight nature, durability, corrosion resistance, recyclability and favourable strength-to-weight ratio. These characteristics make aluminium an important material across industries such as construction, transportation, automobiles, renewable energy, electrical and electronics, engineering, consumer durables and industrial applications.

The global aluminium extrusion industry continues to benefit from the increasing emphasis on lightweight materials, energy efficiency, infrastructure development, urbanisation, renewable energy installations and sustainable manufacturing practices. The transition towards electric mobility and renewable energy, particularly solar power, is also creating additional applications for aluminium extrusion products.

At the same time, the industry remains exposed to fluctuations in aluminium prices, global economic conditions, energy costs, freight costs, geopolitical developments and changes in international trade policies.

Indian Aluminium Extrusion Industry

India continues to witness increasing consumption of aluminium products supported by infrastructure development, urbanisation, industrialisation, renewable energy expansion, automotive manufacturing and the Governments focus on domestic manufacturing.

Aluminium extrusion products find application across a wide range of sectors including architectural and building systems, solar structures, automobiles, electrical and electronics, engineering applications, consumer durables, transportation and industrial machinery.

Government initiatives relating to infrastructure development, renewable energy, Make in India, domestic manufacturing and increasing adoption of electric vehicles are expected to support long-term demand for aluminium and aluminium extrusion products.

The increasing preference for lightweight, corrosion-resistant and recyclable materials also provides a favourable long-term environment for the aluminium extrusion industry.

2. COMPANY OVERVIEW

ANB Metal Cast Limited is engaged in the manufacture of aluminium extrusion products and provides customised aluminium solutions for customers across various industries.

The Company manufactures a wide range of aluminium extrusion products including, inter alia, motor bodies, PDC motor bodies, hardware profiles, kitchen profiles, railing profiles, window profiles and customised extrusion profiles.

The Companys products cater to diverse market segments including:

Architecture; Solar; Mechanical and Engineering; Electrical; Electronics; and Automobile industries.

Apart from aluminium extrusion manufacturing, the Company has capabilities in CNC and VMC machining, assembly and finishing, enabling it to provide value-added and customised solutions to its customers.

The Companys focus continues to be on maintaining product quality, improving operational efficiency, strengthening customer relationships and expanding its capabilities to cater to growing demand from existing as well as emerging industrial sectors.

3. OPPORTUNITIES

The Management believes that the following factors present significant opportunities for the Company:

Growth in Renewable Energy Sector:

Indias continued expansion of renewable energy, particularly solar energy, is expected to increase demand for aluminium profiles used in solar module frames, mounting structures and other applications.

Infrastructure and Construction Growth:

Continued investment in residential, commercial and industrial infrastructure is expected to support demand for aluminium architectural products including window sections, railing profiles, curtain walls and other building applications.

Automobile and Electric Vehicle Industry:

The automotive industrys increasing focus on lightweight materials for improving fuel efficiency and vehicle performance, together with the growth of electric vehicles, provides opportunities for aluminium extrusion manufacturers.

Growth in Electrical and Electronics Applications:

Aluminiums conductivity, thermal properties, durability and relatively low weight make it suitable for numerous electrical and electronic applications.

Import Substitution and Domestic Manufacturing:

Increasing preference for domestic sourcing and Government initiatives promoting manufacturing in India provide opportunities for organised domestic manufacturers capable of maintaining consistent product quality.

Customised and Value-Added Products:

The ability to manufacture customised extrusion profiles and undertake CNC/VMC machining, assembly and finishing provides opportunities to increase value addition and strengthen customer relationships.

Diversified End-User Industries:

The Companys presence across architecture, solar, automobile, electrical, electronics and mechanical applications reduces dependence on any single end-user industry and provides opportunities to participate in growth across multiple sectors.

4. THREATS, RISKS AND CONCERNS

The Companys operations are subject to various business and industry-related risks. Major risks and concerns include:

Raw Material Price Volatility:

Aluminium is the principal raw material for the Companys operations. Significant fluctuations in aluminium and alloy prices may affect production costs, working capital requirements and margins, particularly where increases cannot immediately be passed on to customers.

Competitive Environment:

The aluminium extrusion industry is competitive and comprises organised as well as unorganised manufacturers. Competition based on price, product quality, delivery schedules and technical capabilities may affect the Companys margins and market position.

Economic and Industry Cyclicality:

Demand for aluminium extrusion products is linked to the performance of industries such as construction, infrastructure, automotive, engineering, electrical and renewable energy. Slowdown in these sectors may affect demand.

Working Capital Requirements:

Growth in operations may require higher levels of inventories and receivables. Efficient working capital management therefore remains important for maintaining adequate liquidity.

Energy and Manufacturing Costs:

Aluminium extrusion is a manufacturing-intensive activity and changes in power, fuel, labour and other operating costs may affect profitability.

Customer Concentration and Credit Risk:

Dependence on significant customers and delays in collection of trade receivables may affect cash flows and working capital.

Regulatory and Environmental Requirements:

Changes in environmental, labour, taxation, industrial safety or other regulations may require additional compliance expenditure or changes to operating processes.

Global and Geopolitical Risks:

Geopolitical conflicts, changes in commodity prices, disruptions in supply chains, international trade restrictions and currency fluctuations may indirectly impact raw material availability, costs and customer demand.

The Company continuously evaluates its principal business risks and takes appropriate measures to mitigate such risks to the extent practicable.

5. FINANCIAL PERFORMANCE

During the financial year ended March 31, 2026, the Company recorded significant growth in revenue and profitability.

Financial Performance ( in Lakhs)

Particulars	FY 2025-26	FY 2024-25	Change
Revenue from Operations	22,519.08	16,256.86	38.52%
Other Income	8.25	6.71	22.95%
Total Income	22,527.33	16,263.57	38.51%
Profit Before Tax	2,878.30	1,400.40	105.53%
Profit After Tax	2,145.96	1,024.71	109.42%
Earnings Per Share (Rs)	20.15	11.87	69.76%

The Companys Revenue from Operations increased by approximately 38.52% , from 16,256.86 lakh in FY 2024-25 to 22,519.08 lakh during FY 2025-26.

Profit Before Tax increased substantially from 1,400.40 lakh in the previous financial year to 2,878.30 lakh during the year under review, representing growth of approximately 105.53% .

Profit After Tax increased from 1,024.71 lakh in FY 2024-25 to 2,145.96 lakh during FY 2025-26, representing growth of approximately 109.42% .

The improvement in profitability was supported by higher scale of operations and operating performance during the year.

The Companys basic and diluted Earnings Per Share stood at 20.15 for FY 2025-26 as compared to 11.87 in the previous financial year.

As at March 31, 2026, the Companys shareholders funds stood at 9,834.08 lakh, comprising equity share capital of 1,183.48 lakh and reserves and surplus of 8,650.60 lakh.

6. OPERATIONAL PERFORMANCE

During FY 2025-26, the Company continued to focus on strengthening its aluminium extrusion business and improving its capabilities to cater to customers across multiple industries.

The Company follows quality control procedures throughout the manufacturing process, from inspection of incoming aluminium material to final product inspection. Its manufacturing and quality infrastructure includes facilities for testing chemical composition, dimensions, electrical conductivity, mechanical strength, hardness and other relevant parameters.

The Companys in-house capabilities relating to tool and die development, CNC/VMC machining, assembly and finishing enable it to cater to customised requirements and provide value-added products to customers.

Management continues to focus on operational efficiency, product quality, timely delivery, customer satisfaction and optimum utilisation of manufacturing resources.

7. INITIAL PUBLIC OFFER AND LISTING

During the financial year under review, the Company successfully completed its Initial Public Offering and its equity shares were listed on the SME Platform of the National Stock Exchange of India Limited (NSE Emerge) .

The listing represents an important milestone in the Companys journey and is expected to enhance its corporate visibility, strengthen its capital base and support its future growth plans.

The Company remains committed to maintaining appropriate standards of governance, transparency, disclosure and regulatory compliance as a listed entity.

8. OUTLOOK

The long-term outlook for the aluminium extrusion industry remains positive, supported by increasing application of aluminium across infrastructure, construction, renewable energy, automotive, electrical, electronics and engineering sectors.

The Management expects increasing demand for lightweight, durable, corrosion-resistant and recyclable materials to continue supporting aluminium consumption.

The Company intends to focus on:

increasing production and operational efficiency; improving capacity utilisation; developing customised and value-added extrusion products; strengthening relationships with existing customers; expanding its customer base; increasing its presence across high-growth end-user industries; maintaining stringent quality standards; improving working capital efficiency; and exploring opportunities that create sustainable long-term value for stakeholders.

While the overall business outlook remains positive, the Company will continue to remain cautious regarding raw material price volatility, global economic conditions, working capital requirements and other external risks.

9. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has established internal control systems commensurate with the size and nature of its operations. The internal control framework is designed to provide reasonable assurance regarding safeguarding of assets, prevention and detection of fraud and errors, accuracy and completeness of accounting records, timely preparation of reliable financial information and compliance with applicable laws and regulations.

The internal control systems and procedures are periodically reviewed to identify areas requiring improvement and to ensure that they remain adequate and effective considering the evolving scale and complexity of the Companys operations.

The Audit Committee and the Board of Directors periodically review significant observations relating to internal controls and appropriate corrective actions are taken wherever considered necessary.

10. HUMAN RESOURCES AND INDUSTRIAL RELATIONS

Human resources are an important component of the Companys growth and operational capabilities. The Company recognises the importance of attracting, developing and retaining skilled and motivated employees.

The Company continues to focus on employee training, workplace safety, productivity enhancement, skill development and creation of a positive working environment.

Industrial relations during the year remained cordial and the Management appreciates the contribution and commitment of employees at all levels towards the growth and performance of the Company.

11. HEALTH, SAFETY AND ENVIRONMENT

The Company recognises occupational health, workplace safety and environmental responsibility as integral elements of sustainable manufacturing.

The Company endeavours to maintain appropriate systems and processes for workplace safety, quality management, environmental management, waste reduction and efficient utilisation of resources.

The Company continues to promote awareness among employees regarding safe working practices and responsible utilisation of resources.

12. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES

The Company continues to strengthen its organisational capabilities in line with the growth of its operations. Recruitment, employee development, technical training and retention of skilled manpower remain important areas of focus.

The Management believes that an experienced and committed workforce will continue to play an important role in achieving the Companys strategic and operational objectives.

13. CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates, expectations, plans or predictions may constitute forward-looking statements within the meaning of applicable securities laws and regulations.

Actual results could differ materially from those expressed or implied due to various factors including economic conditions affecting demand and supply, fluctuations in raw material prices, changes in Government regulations, taxation, interest rates, market conditions, competition, technological developments and other incidental factors.

The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements on the basis of subsequent developments, information or events, except as may be required under applicable laws.