Apex Ecotech Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENT

Our Company Apex Ecotech Limited was founded on 01 st April 2009 and stands out as a leading force in the water and wastewater management sector, leveraging over 17 years of expertise to tackle complex water-related challenges with advanced, value-driven solutions. Our core competencies include the provision and integration of advanced technologies and comprehensive services in water and wastewater treatment, recycling, evaporators, and Zero

Liquid Discharge (ZLD) systems.

Leadership and Expertise:

Apex Ecotech Limited is led by a team of seasoned professionals with deep technical and project execution expertise in the water and wastewater treatment industry.

The company is spearheaded by a Quartet of promoters: Mr. Anuj Dosajh, Mr. Ajay Raina, Mr. Ramakrishnan

Balasundaram Aiyer and Mr. Lalit Mohan Datta. Collectively, they bring specialised experience of over 31 years. Their deep understanding of market dynamics and technical expertise is a cornerstone of Apex Ecotech Limiteds success.

Apex Ecotechs leadership continues to drive its expansion through technological integration, client trust, and a strong on-ground project management team.

We specialize in total water management projects, delivering state-of-the-art solutions. Our comprehensive approach, backed by in-depth knowledge and experience, allows us to design and implement advanced equipment and systems. We focus on incorporating the latest technologies to provide reliable, value-added, and user-friendly solutions in the industry and other establishments for a wide range of applications.

The Companys independent directors Mr. Neeraj Bhagat, Mr. Ashutosh Anilkumar Vadanagekar, Mr. Rajiv Mathur and Ms. Satya Jagannathan provide additions to the Board with their expertise and maintain transparency.

PRODUCT RANGE

Apex Ecotech delivers a comprehensive suite of water and wastewater treatment solutions, tailored for industrial, commercial, and municipal settings:

1. Raw & Process Water Treatment

Systems including raw water intake treatment, removal of solids, sedimentation, and filtration ensuring safe water quality for industrial use.

2. Effluent and Sewage Treatment Plants (ETP/STP)

• Custom-designed ETPs/STPs to meet regulatory standards, with features like sludge dewatering for efficient waste disposal.

3. Membrane-Based Recycling

Ultrafiltration (UF), nanofiltration (NF), and reverse osmosis (RO) systems, including disc-type RO, enabling pre-treatment and high-purity recycling of wastewater.

4. Zero Liquid Discharge (ZLD) Technologies

• Full ZLD systems using thermal evaporators, mechanical vapor recompression (MVR), and crystallizers to nearly eliminate liquid discharge and recover >98% water.

5. Operation, Maintenance & After-Sales Support

• Pos t-ins talla tion ser vices and O& M engagements for plant sustainability, backed by ISO 9001:2015-certified processes.

6. Component Supply & Spares

In-house provision of equipment, chemicals, and spares for system upkeep and long-term operational continuity.

MARKET PRESENCE

Geographic Coverage

Headquartered in Pune with an office in Delhi, the Company has commissioned over 250 turnkey projects across India, aggregating approximately ~145 MLD treatment capacity and ~5.5 MLD ZLD capacity.

Clientele

Blue-chip clients: Aditya Birla, Hero MotoCorp, HUL, PepsiCo,

Honda, Reckitt Benckiser, and many more.

Key products and services

Sewage Treatment Plants, Effluent Treatment Plants,

Water Treatment Plants, Zero Liquid Discharge Systems,

Dewatering Systems.

Recognition & Technological Edge

• Awards: Global Ecological Transformation (Shanghai, 2024), MBR Champions Award by Suez.

• Strategic tech alliances: Partnerships with OEMs like

Veolia, DuPont, Pentair, lending global-grade technology to their systems.

Strategic Position & Outlook

• End-to-end EPC capabilities: From design to commissioning and O&M minimizing reliance on third-party vendors.

• Sustainability-driven solutions: High recovery ZLD and membrane-based recycling align with stringent ESG regulations and water reuse initiatives.

STRENGTHS AND COMPETITIVE ADVANTAGES

Apex Ecotech has established a strong foothold in the market by leveraging its core competencies and unique selling propositions (USPs):

• Customization Expertise: Apex Ecotech excels in tailoring its solutions to meet the unique needs of each client and project. This ability to provide customized solutions is crucial in a market where standardized approaches often fail to address specific industry requirements.

• Experienced Leadership and Management Team: The company benefits from the guidance of a seasoned management team with extensive industry knowledge and a successful track record in the water and wastewater treatment sector.

• Sustainable Business Model: Apex Ecotech is committed to promoting sustainability through its solutions, prioritizing resource recovery, and emphasizing efficient water usage. This focus on environmentally responsible practices resonates with clients who are increasingly conscious of their ecological footprint.

• Strong Client Relationships and a Portfolio of Marquee Clients: Apex Ecotech has forged enduring relationships with prominent clients in various sectors, demonstrating its capability to deliver high-quality solutions and build trust within the industry.

GROWTH STRATEGIES AND FUTURE PLANS

Apex Ecotech aims to capitalize on the growing water and wastewater treatment market through the following strategic initiatives:

• Maintaining a Strong Focus on the Industrial Sector:

The company will continue to concentrate on providing specialized solutions for industrial clients, leveraging its expertise and deep understanding of the unique requirements of various industries.

• Expanding into New Markets and Industry Segments:

Apex Ecotech plans to broaden its geographical reach and explore opportunities in new industry segments. This strategic expansion will diversify the companys revenue streams and mitigate risks associated with dependence on specific sectors or regions.

• Driving Innovation and Adopting Advanced Technologies: Apex Ecotech is committed to investing in research and development to create innovative solutions that meet evolving industry needs and incorporate cutting-edge technologies. This focus on innovation will ensure the company remains competitive and offers high-value solutions to its clients.

• Strengthening Strategic Partnerships: Apex Ecotech aims to collaborate with leading technology providers, industry consultants, equipment suppliers, and EPC contractors. These strategic partnerships will provide the company with access to specialized knowledge, resources, and expertise, supporting its innovation efforts and market expansion plans.

RISK FACTORS AND CONCERNS

Potential investors should carefully consider the following challenges and risks associated with Apex Ecotech and its business model:

Dependence on Key Industries: A significant portion of Apex Ecotechs revenue is generated from a limited number of industries, making it vulnerable to fluctuations in those specific sectors.

• Intense Competition: The water and wastewater treatment industry is highly competitive, with both domestic and international players vying for market share. Apex Ecotech must continually adapt and innovate to maintain its competitive edge.

Market Volatility: the Companys share price may experience volatility influenced by market sentiment, industry trends and broader economic conditions, and the SME platform can be less liquid than the Main Board.

• Litigation: the Company is party to litigation in the ordinary course of business, the outcomes of which could give rise to financial liabilities, reputational impact or operational disruption. Details of contingent liabilities, if any, are set out in the Notes to the Financial Statements.

OUTLOOK

At Apex Ecotech Limited, we are dedicated to advancing environmentally conscious and carbon-neutral technologies and solutions for global water resource management. Our commitment includes evolving and adopting intelligent, energy-efficient systems while expanding and diversifying our efforts ethically. We strive to be responsible and aspirational in our approach, ensuring high-impact results and sustainable practices.

INTERNAL CONTROL

The Company has an independent Internal Audit function with a well-established risk management framework. There is an adequate internal control procedure commensurate with the size of the company and nature of the business for inventory, fixed assets and for the sale of goods or services. The Company has implemented proper and adequate systems of internal control to ensure that all assets are safeguarded and protected against loss from any unauthorized use or disposition and all transactions are authorized, recorded and reported correctly. The system ensures appropriate information flow to facilitate effective monitoring. The

Company has engaged a reputable external firm to support the Internal Audit function for carrying out the Internal Audit reviews.

Further, the Company has constituted Audit committee to overlook the internal control systems and their adequacy. Audit committee regularly reviews and gives recommendations on proper and adequate internal control systems.

OPERATIONAL PERFORMANCE

Apex Ecotech Limited demonstrated strong operational momentum during the financial year, driven by successful execution of turnkey water and wastewater treatment projects across a diverse range of industries. The company maintained healthy profit margins and showed notable improvement in efficiency, particularly in the latter half of the year, supported by increased project deliveries and better resource utilization.

The business benefited from growing demand for sustainable water solutions and stricter environmental regulations, which aligned well with its core offerings such as zero liquid discharge systems, membrane technologies, and effluent treatment plants.

The Company continues to manage the receivables cycle and the working capital intensity inherent in turnkey EPC contracting, supported by the financial discipline and the investor oversight that come with being a listed entity.

In summary, the Companys performance in FY 2025-26 was marked by revenue from operations of 14,865.07 Lakh and profit after tax at 1,702.30 Lakh and continued investment in technology and execution capability, positioning it well for further expansion.

DEVELOPMENT IN HUMAN RESOURCE

At Apex Ecotech Limited, we firmly believe that our employees are pivotal to our success and growth. Our human resources strategy is designed to attract, retain, and nurture the best talent, ensuring that each individual contributes effectively to our business objectives.

As at 31 st March, 2026 the Company employed 121 employees individuals, forming a robust and versatile team.

Our workforce includes:

• Experienced Professionals: These individuals bring valuable industry knowledge and expertise, contributing to strategic decision-making and high-level operational oversight.

• Skilled Workers: Employees with specific technical skills and specialized knowledge play a crucial role in maintaining operational efficiency and product quality.

• Semi-Skilled and Unskilled Workers: These team members are integral to day-to-day operations, supporting various tasks that are essential for the smooth functioning of our manufacturing processes.

SIGNIFICANT CHANGES

(i) Debtors Turnover: ratio for the F.Y. 2025-26 is 10.50 as compared to F.Y. 2024-25 which was 10.36. (ii) Inventory Turnover: ratio for the F.Y. 2025-26 is 32.98 as compared to F.Y. 2024-25 which was 23.59.

(iii) Interest Coverage Ratio: ratio for the F.Y. 2025-26 is 256.28 as compared to F.Y. 2024-25 which was 145.55.

(iv) Current Ratio: ratio for the F.Y. 2025-26 is 3.56 as compared to F.Y. 2024-25 which was 4.50.

(v) Debt Equity Ratio: ratio for the F.Y. 2025-26 is 0.02 as compared to F.Y. 2024-25 which was 0.00. There is a change due to availment of debt of debt during the year, also in previous year debt was negligible.

(vi) Operating Profit Margin (%): operating profit margin for the F.Y. 2025-26 is 14.64%.

(vii) Net Profit Margin (%): net profit margin for the F.Y. 2025-26 stands at 11.45%

FUTURE PROSPECTS:

Apex Ecotech Limited is well-positioned for sustained growth, driven by increasing environmental regulations, rising demand for water recycling, and industry-wide adoption of sustainable practices. Its expertise in zero liquid discharge systems, advanced membrane technologies, and turnkey project execution gives it a strong competitive edge. With improved visibility and capital strength following its IPO, the company is poised to expand both domestically and in select international markets. Continued investments in technology and operational efficiency, along with a robust order book, are expected to support its long-term growth trajectory.

CAUTIONARY STATEMENTS

All statements made in Management and Discussion Analysis have been made in good faith. Many unforeseen factors may come into play and affect the actual results, which may be different from what the management envisages in terms of performance and outlook. Factors such as economic conditions affecting demand/supply and priced conditions in domestic & international markets in which the Company operates, and changes in Government regulations, tax laws, other statues and other incidental factors, may affect the final results and performance of the Company.

By order of the Board of directors Apex Ecotech Limited

Sd/-Anuj Dosajh

(Managing Director) DIN: 00119225 Date: Septemer 02, 2026

Place: New Delhi

ANNEXURE-V

CERTIFICATION FROM MD & CFO

(Regulation 17(8) of SEBI Listing Obligations and Disclosures Requirements) Regulations, 2015)

To,

The Board of Directors, Apex Ecotech Limited,

Office No. 202, Garden Plaza, Five Gardens Road, Sunshine Villas,

Rahatani, Pimpri Waghire, Pune, Maharashtra-411017

Dear Sir,

We, Mr. Anuj Dosajh, Managing Director, (DIN:00119225) and Mr. Rakesh Kaul, Chief Financial Officer, of the Company jointly declare and certify as under, in relation to the financial year 2025-26:

A. We have reviewed financial statements and the cash flow statement for the year and that to the best of our knowledge and belief:

(i) These statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading;

(ii) These statements together present a true and fair view of the listed entitys affairs and are in compliance with existing accounting standards, applicable laws and regulations.

B. There are, to the best of our knowledge and belief, no transactions entered into by the listed entity during the year which are fraudulent, illegal, or violative of the listed entitys code of conduct.

(i) We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have evaluated the effectiveness of internal control systems of the listed entity pertaining to financial reporting and we have disclosed to the auditors and the audit committee, deficiencies in the design or operation of such internal controls, if any, of which we are aware and the steps we have taken or propose to rectify these deficiencies.

(ii) We have indicated to the Auditors and the Audit committee:

there is no significant changes in internal control over financial reporting during the year;

there is no significant changes in accounting policies during the year; and

there is no instances of significant fraud of which we have become aware and the involvement therein, if any of the management or an employee having a significant role in the listed entitys internal control system over financial reporting.

By order of the Board of directors Apex Ecotech Limited

Sd/- Sd/-

Anuj Dosajh Rakesh Kaul Date: September 02, 2026 (Managing Director) (Chief Financial Officer) Place: New Delhi DIN: 00119225 PAN: ABFPK6544B