ASK Automotive Ltd Management Discussions

A. INDUSTRY STRUCTURE AND DEVELOPMENT

Global Economy Overview¹

In CY 2025, the global economy grew by 3.4%, reflecting its resilience amid ongoing international geopolitical uncertainties. This performance was driven by sustained investment in technology, accommodative financial conditions and fiscal & monetary policy support. Easing supply constraints and more balanced labour markets helped reduce inflation, bringing global inflation down to 4%². As a result, borrowing became easier and cheaper. This was supported by a strong influx of foreign investment and a weaker US dollar, which stabilised local currencies and gave central banks more flexibility to manage their economies.

Overall, the growth trends varied across economies. Advanced economies recorded a modest 1.9% expansion, with the United States supported by resilient consumption and continued investment in innovation. The Eurozone, however, experienced slower momentum amid subdued industrial activity and weaker external demand. Emerging economies outpaced their advanced peers, growing by 4.4%, supported by Chinas export activity and steady trade across Asia.

Outlook³

The global economic outlook is currently shaped by shifting trade policies, fiscal challenges and ongoing geopolitical tensions. A significant hurdle has emerged with the recent conflict in West Asia. If the situation remains contained, global growth is projected to moderate to 3.1% in CY 2026⁴. Continued policy support, alongside sustained domestic demand from monetary easing, may help cushion the impact of higher tariffs, while rising wages in several major economies are expected to bolster private consumption. Inflation is anticipated to experience a minor uptick, with current estimates at 4.4% for CY 2026. However, price pressures are expected to ease to 3.5% in CY 2027 as job markets soften and demand for traded goods slows down⁵ . In response, central banks are likely to pursue a cautious easing of monetary policy to sustain growth. At the same time, expanding bilateral trade partnerships enables countries to reduce reliance on concentrated trade corridors. Overall, the outlook remains uncertain, with global growth expected to progress at a measured pace. Long-term stability will depend on stronger trade integration, resolutions of geopolitical tensions and sustained investment-led expansion, particularly across emerging markets.

Indian Economy Overview

In FY 2025–26, the Indian economy maintained strong momentum, supported by stable macroeconomic fundamentals and continued policy support. Despite a challenging global environment, real GDP grew by 7.7%, positioning India among the fastest-growing major economies⁶ . Inflation moderated at 3.4%, remaining well within the Reserve Bank of Indias target range of 2%–6%, supported by lower input costs and improved supply conditions⁷.

Robust domestic demand, aided by lower income tax and GST rates, stimulated further growth, especially in automobile sales and vehicle registrations. Private final consumption expenditure maintained a consistent momentum and investment activity continued to exhibit strength. On the supply side, industrial activity gathered pace, particularly in motor vehicle manufacturing, driven by growth in auto components, spares and accessories, as well as commercial vehicles.

Outlook⁸

Tariff-related trade disruptions and volatility in capital flows may intermittently affect exports and investor sentiment. However, strong capacity utilisation, improving credit growth and continued government focus on capital expenditure are expected to support investment activity, with the GDP growth rate projected at 6.6% for FY 2026-27. Near-term inflation outlook remains uncertain as the West Asia conflict and rising energy prices may impact the availability of key inputs for downstream sectors like automotive. Despite these pressures, CPI inflation for 2026-27 is projected at 5.1% by RBI, bolstered by favourable supply conditions and the ongoing benefits of GST rate rationalisation. To support consumer demand in this environment, the MPC has reduced the repo rate to 5.25% in FY 2026 and maintained its neutral stance. Policy measures announced in the Union Budget 2026–27 are aimed at strengthening manufacturing value chains. Initiatives such as investments in critical raw materials, the India Semiconductor Mission 2.0 and the Electronic Component Manufacturing Scheme are expected to strengthen the broader supply chain ecosystem, supporting the automotive sector. Concurrently, excise relief on biogas-blended CNG and allocations for carbon capture (CCUS) signal a clear push towards decarbonisation, supporting a more sustainable and inclusive mobility transition in line with the Viksit Bharat vision.

Indias expanding global trade footprint, supported by the signing of nine major Free Trade Agreements (FTAs) in six years, is strengthening trade ties across regions, including Africa, Europe, the US, the UK, Australia, the UAE and New Zealand. These agreements are expected to enhance auto component exports, improve market access, attract investments and strengthen the global competitiveness of Indian manufacturers. The India–EU Free Trade Agreement, in particular, creates opportunities for increased investment and strategic collaboration, supporting exporters amid global uncertainty with benefits expected to accrue over time⁹.

B. INDUSTRY OVERVIEW

Global Automotive Industry

The automotive industry is undergoing a period of rapid transformation, driven by technological innovation, evolving consumer preferences and changing regulatory frameworks. At the same time, the shift towards electric vehicles is gaining pace, fuelled by growing environmental awareness and government incentives to reduce emissions. Growth remains strong in emerging markets, such as Asia and Africa, supported by rising middle-class incomes and urbanisation. In 2025, global passenger car registrations reached 77.6 million units, a 3.5% increase from 2024. Growth was supported by tax reforms, government incentives and the rising adoption of electric vehicles across major markets. Global passenger car production also rose by 4.2% to 78.7 million units, with Asia accounting for 62.1% of total global output¹⁰.

Global light vehicle sales are projected to remain steady, reaching 91.8 million units in 2026 vis-?-vis 91.7 million in 2025. This stable outlook persists despite variables like tariff impact, semiconductor chip supplies, high interest rates and uneven EV adoption rates. To navigate this competitive landscape and manage high capital requirements, industry suppliers are proactively utilizing cost optimization and artificial intelligence to enhance operational efficiency.

Global Two-Wheeler Industry

Two-wheelers serve as an affordable and efficient mode of transport, especially in densely populated cities and developing economies. Rising traffic congestion is driving demand for motorcycles and scooters as convenient and fuel-efficient travel options. Their ease of parking and ability to reduce travel time make them especially popular across Asia, Latin America and Africa. Motorcycles account for the largest share of the market and remain a primary mode of transport in many developing countries. The shift towards electric two-wheelers is gaining momentum, supported by government incentives, stricter emission regulations and expanding charging infrastructure. Adoption is rising due to lower operating costs and zero emissions. Demand for both commuter and high-performance motorcycles is increasing, driven by the growth of ride-sharing and delivery services. In addition, premiumisation, advanced features and a growing aftermarket are supporting market expansion. Overall, market trends reflect a growing focus on electrification, digital connectivity and advanced rider assistance systems, with electric motorcycles gaining traction in urban areas.

Regional Overview

North America

Europe

In 2025, North American passenger car registrations grew by a modest 1% to 15.57 million units, reflecting an uncertain and volatile economic landscape. During the same period, the regions two-wheeler market contributed approximately USD 5.89 billion to the global sector, accounting for a 4.98% share. This figure is projected to reach USD 6.06 billion in 2026, with growth in the regional two-wheeler segment expected to be driven by increasing demand for motorcycles11.

Europes passenger car registrations grew 1.4% in 2025, reaching 16.32 million units. During the year, the two-wheeler market was valued at USD 10.21 billion, accounting for 8.63% of global demand. Projections indicate this market will rise to USD 10.54 billion by 2026, with growth driven by increasing consumer demand for the convenience of electric vehicles13.

South America

South America was the fastest-growing region as passenger car registrations increased 11.3% to 3.37 million units. A favorable macroeconomic environment and low unemployment supported this growth, while an aggressive expansion by Chinese brands maintained strong import activity despite currency depreciation. The regions two-wheeler market is expanding due to commercial fleet demand for last-mile delivery within the gig economy. The market is valued at USD 14.16 billion in 2025 and is projected to grow from USD 14.78 billion in 2026 to USD 18.31 billion by 2031, reflecting a 4.38% CAGR during the 2026 to 2031 forecast period¹².

Source: ACEA

Africa

Passenger car registrations in the Middle East and Africa grew by 4.4%, totalling 4.03 million units. The African two-wheeler market is projected to expand from USD 5.18 billion in 2025 to USD 5.55 billion in 2026, reaching USD 7.81 billion by 2031 at a CAGR of 7.08%. This growth is supported by rapid urbanization, a young population and ongoing government duty rebates for complete and semi-knocked-down assembly operations¹⁴.

Asia Pacific

Asia led global passenger car registrations with a 4.8% increase to 38.27 million units, largely driven by a 5.5% rise in China. This expansion was supported by scrappage incentives, tax benefits for new energy vehicles and an improved economic outlook. The Asia Pacific region generated USD 82.9 billion in revenue, representing 70.09% of the global two-wheeler market. This value is expected to reach USD 86.96 billion by 2026 as urbanization and traffic congestion increase demand for efficient transportation solutions¹⁵.

Indian Automotive Industry

The Indian automotive industry is undergoing a significanttransformation,contributingapproximately 7.1% to GDP and nearly 49% to manufacturing GDP, while serving as a critical driver for employment, manufacturing growth and the transition to green mobility¹⁶. Demand remains strong, supported by rising disposable incomes, improving rural sentiment, a large working-age population and increased female participation in the demographic profile. The Indian automotive industry saw broad-based growth as both the passenger and commercial vehicle segments benefited from favourable fiscal and monetary policies. Improved affordability, driven by GST rate reductions and personal income tax relief, boosted consumer purchasing power, while increased government spending stimulated industrial demand. Furthermore, successive RBI repo rate cuts significantly lowered financing costs, making vehicle ownership more accessible for individuals and fleet operators alike.

46.43 Lakh Units

Passenger Vehicle Domestic Sales (7.9% YoY Growth)

10.80 Lakh Units

Commercial Vehicle Domestic Sales (12.6% YoY Growth)¹⁷

The industry provides direct employment to about 4 million people and supports nearly 26 million across its value chain, including dealerships, logistics, service centres and allied industries. Its reach spans both rural and urban India, with two-wheelers enabling mobility and passenger and commercial vehicles supporting connectivity and goods movement¹⁸ Further, the auto component industry is witnessing steady growth, supported by domestic demand and localisation initiatives. The industry recorded a turnover of INR 7,59,234 crore in FY2025–26, registering a year-on-year growth of 12.7%. The aftermarket segment grew by 9% to INR 1,08,453 crore, due to improving replacement demand and a gradual shift towards organised players. Auto component exports grew despite global challenges, but higher imports led to a trade deficit. Europe recorded the strongest growth as a key export market, while China, Japan, and Germany remained leading sourcing markets. Electric vehicles accounted for 4.6% of total supplies to OEMs (excluding lithium-ion batteries), underscoring the steady transition towards new-age mobility. Global concerns, such as geopolitical conflicts, continue to weigh on the industrys outlook by potentially increasing costs and disrupting critical supply routes. Despite these external pressures, India has successfully established itself as a global automotive powerhouse through strategic initiatives such as Make in India, Faster Adoption and Manufacturing of Electric Vehicles in India (FAME) and the Production Linked Incentive (PLI) scheme. This positive momentum is further reinforced by the Union Budget 2026–27, which allocates INR 5,940 crore to the PLI scheme to attract investment and accelerate the adoption of advanced automotive technologies²⁰. Policy support, including GST reductions on small cars, two-wheelers and auto components, has improved affordability and stimulated demand, while reinforcing domestic manufacturing. The sector has also strengthened its global position, with exports growing by 24% year on year, reflecting the growing competitiveness and capacity expansion by OEMs. This momentum is positioning India as a dependable manufacturing hub for emerging & developed markets²¹.

Indian Two-Wheeler Industry

India is considered the worlds largest two-wheeler market and a major player across key vehicle segments globally. This growth is underpinned by favourable demographics, rising incomes and gaps in public transport infrastructure. Motorcycles and scooters continue to serve as the primary mode of mobility for a large section of the population.

At the same time, two-wheelers and entry-level vehicles are benefiting from rural recovery and replacement demand. The increasing role of shared mobility, quick commerce and last-mile connectivity is also supporting sustained demand for two-wheelers. Growth has been seen in both urban and rural markets, but it is mainly driven by demand from urban areas. Two-wheeler domestic sales grew by 10.7%, driven by a revival in replacement demand following GST rate cuts, a gradual recovery in urban consumption and resilient rural incomes aided by a normal monsoon²³

. Further, the segment export has reached a record high, driven by a wider product range, strong global acceptance of Indian brands and a weaker rupee supporting export volumes.

Electric Vehicle (EV) Market

Indias EV market is witnessing strong demand from end-use segments such as passenger mobility platforms, food delivery aggregators, quick commerce players and e-commerce logistics providers, where electric two-wheelers offer superior economics for high-utilisation use cases. In addition, rising adoption among daily commuters, driven by lower running costs and increasing fuel price sensitivity, is further supporting volume growth. This demand momentum is attracting significant interest from manufacturers, investors and policymakers.

Central to this is the PM E-DRIVE scheme, which provides direct subsidies for vehicles and has extended the electric two-wheeler subsidy deadline to July 31, 2026, or until funds are exhausted²⁶. Separately, the scheme has allocated INR 2,000 crore to expand the national public EV charging network²⁷. These efforts are bolstered by reduced GST rates on EVs and chargers, state-level road tax and registration fee waivers and complementary PLI-ACC and PLI-Auto schemes that strengthen domestic battery and component manufacturing to lower costs and build supply chain resilience.

Allocated to PM E-DRIVE Scheme in Budget 2026-27 ²⁸

Aluminium-Based Component

The aluminium market comprises alloys and forms such as extrusions, sheets and castings, widely used in vehicle components to reduce overall weight. A significant share is utilised in alloy wheels and other lightweight parts, aligning with the governments push for electric mobility and fuel efficiency under PM E-Drive and BS-VI norms. The Asia-Pacific region, led by China, India and Japan, dominates the secondary aluminium market, driven by growing automotive demand.

The Companys strong presence in the Aluminium Lightweighting and Precision Solutions (ALPS) segment positions it to capitalise on this trend. Beyond its core ICE two-wheeler business, it is also expanding into EV component manufacturing. In the future, growth is expected to be driven by sustained investments and ongoing technology upgrades in this segment of business.

C. OPPORTUNITIES AND THREATS

Opportunities

IncreasingTrendofElectrificationandLightweighting

The growing shift towards premiumisation of vehicles and increased adoption of electronic and electrical applications have also increased the requirement for thermal management solutions, wherein the Companys Aluminium Lightweight Precision Solutions (ALPS) business stands to benefit significantly. Further, the increasing focus on vehicle lightweighting is opening additional opportunities for aluminium-based products and components, particularly in electric vehicles.

Expanding Independent Aftermarket riding on GST 2.0

The rationalisation of GST rates has accelerated the shift towards organised aftermarket players, particularly in safety-critical products such as braking systems and friction materials. With increasing preference for quality and reliable products, established players with strong distribution reach and trusted brands are expected to benefit from the growing formalisation of the aftermarket segment, replacing grey market operators.

Scaling PV Segment Products

The Company, with its design-to-delivery capabilities, expertise in safety-critical products, established OEM-approved infrastructure and proven technical and operational track record, is well positioned to scale its presence in the passenger vehicle segment. As the Company has already entered the PV space, both directly and through Tier-1 channels, there is a significant market opportunity to tap, particularly for the Companys ALPS products and solutions.

Leveraging our Proven Technical & Operational Capabilities for Export

The Company has established itself as export-ready through the supply of safety-critical, high-precision and high-quality components and assemblies to renowned global OEMs in both automotive and non-automotive segments. With India emerging as a manufacturing hub for auto components, the Company is well positioned to support global OEM requirements and expand its export presence across key markets.

Import Substitution and Localisation Trends Opening New Avenues

Driven by government initiatives and broader economic dynamics, there is a visible trend towards import substitution and localisation among OEMs. Schemes such as PLI encourage higher local content to qualify for incentives. In addition, the overall competitive strength of Indian manufacturers has reached global standards and the Company is already well positioned within this category.

Threats

Global Geopolitical and Supply Chain Uncertainties

The Companys business is linked to domestic and global automotive industry trends and supply chains.

D. OVERVIEW AND OUTLOOK

ASKAutomotivestandsasIndiasleadingmanufacturer of two-wheeler Advanced Braking Systems. The Company has showcased engineering excellence for over three decades. The Company commands approximately 50% of the Indian two-wheeler Advanced Braking Systems market, including brake shoes, disc brake pads and brake panel assemblies.

The Company holds a prominent position as a manufacturer of Aluminium Lightweighting Precision Solutions for automotive and non-automotive industries. It has the integrated capabilities of die-casting, critical machining, paint finishing and critical assembly. These enable the Company to supply powertrain-agnostic products to automobile Original Equipment Manufacturers (OEMs). Further, the Company is increasing its focus on the electric vehicle sector.

Geopolitical developments, trade restrictions, logistics disruptions and changes in international business environments may impact the availability and movement of raw materials and components. Any prolonged disruption in global supply chains could affect production schedules, lead times and overall business operations.

Fluctuation in Raw Material Prices

The Company remains exposed to volatility in the prices of key raw materials such as aluminium, steel and other commodities used in manufacturing processes. Significant fluctuations in input costs may impact margins, particularly where immediate cost pass-through mechanisms are not feasible. The Company continues to focus on operational efficiencies, strategic sourcing and cost optimisation initiatives to mitigate such risks.

Regulatory Changes and Evolving Mobility Trends

The automotive industry is subject to evolving regulatory requirements relating to safety, emissions and localisation norms. Changes in government policies, environmental regulations, or industry standards may require continuous investments in technology, product development and manufacturing capabilities. Additionally, the transition towards electric mobility and changing customer preferences could impact demand patterns across certain conventional automotive components.

As a mitigation strategy, the Company has in-house design and development capabilities to adapt to changing customer preferences and investments in new technologies are not considered a constraint for the Company.

In the Safety Control Cable segment, by adopting best-in-class technologies and constant upgrades, the Company has been able to establish a network of 450+ dealers in India. The Company offers a range of control cables, such as front and rear brake cables, throttle cables and speedometer cables. In addition, the Company also manufactures clutch cable assemblies and other critical safety control cable systems catering to leading 2W OEMs.

The Company has 18 strategically located state-of-the-art manufacturing facilities in close proximity to OEMs, enabling timely delivery, better economies of scale for customers and logistical advantages. In addition, 3 plants, including one Joint Venture plant, are currently under installation and are expected to become operational by FY2027. The Company ensures that its manufacturing facilities are accredited for quality and safety with globally recognised certifications such as IATF 16949:2016, ISO 9001:2015, ISO 14001:2015, ISO 45001:2018 and ISO 27001:2022.

The Companys recent joint venture with T.D. Holdings GmbH (Germany), the technical license-holding company of GEMO, established in 2025, has provided it with an opportunity to strengthen its presence in the passenger vehicle segment. The joint venture focuses on the manufacturing, marketing and sale of sunroof control cables and helix cables for passenger vehicles. The joint venture can leverage GEMOs technical expertise and global capabilities in the design, development and manufacturing of advanced cable systems for automotive applications. The Company has a strong engineering, R&D and design team that forms the backbone of its product development capabilities. Backed by advanced technological expertise and a workforce of over 9,000 dynamic individuals, the Company remains committed to delivering best-in-class solutions to customers. The Company is also a technology-driven organisation with 52 proprietary formulations that support innovation and future-ready mobility solutions.

Key Differentiators

Group Strengths	Description
Leading Market Position	Indias largest 2W Advanced Braking System manufacturer, holding roughly 50% of the market share.
Versatile EV and Non- EV Offerings	Powertrain-Agnostic Product Portfolio Across EV and Non-EV Segments.
Strong Collaborations and Joint Ventures	Five World-Class Technical Collaborations and Three Joint Ventures
High Entry Barriers	High barriers to entry sustained through proprietary material formulations, in- house engineering, designing and tooling.
Strong Customer Alliances & Aftermarket	Deep-rooted customer relationships and an established aftermarket network anchored by excellence in quality, cost and delivery.

Operational Highlights

The Company delivered strong operational performance during the year, supported by steady demand recovery and improved execution across business segments. Earnings improved through a strategic focus on enhancing the product mix and scaling high-value segments such as Aluminium Lightweight Precision Solutions (ALPS). This was further supported by improved capacity utilisation at the Karoli (Rajasthan) and Bengaluru (Karnataka) facilities, along with a calibrated reduction in the low-margin wheel assembly business.

Capacity expansion remained a key focus area during the year. The Advanced Braking Systems (ABS) segment continued to operate at high utilisation levels, leading to additional capacity investments to support future demand growth. The Bengaluru plant also achieved healthy utilisation levels ahead of schedule. To cater to the increased demand propelled by GST 2.0 reforms, the Company is in the process of installing 2 new facilities.

The Company remains well-positioned to capitalise on opportunities across the EV, Commercial Vehicle and Passenger Vehicle segments, supported by its market leadership in 2W braking systems, EV-focused product development and strong global partnerships. The Company also continued to strengthen its ESG initiatives through the CARE framework and renewable energy adoption efforts. The 9.9 MWp captive solar plant in Sirsa, Haryana, is delivering the expected results, while the 11.55 MWp captive solar plant in Rajasthan is expected to become operational in Q1 FY2027.

Strategic Partnerships

The Companys philosophy to engage in new collaborations and partnerships has enabled it to build strong relationships with OEM customers, some of which span over three decades. The Company has 5 world-class technical collaborations and 3 joint ventures with leading global players.

The Companys recent joint venture, ASK GTD Control Cables Pvt. Ltd., with T.D. Holdings GmbH (Germany), the technical license-holding company of GEMO, has provided an opportunity to strengthen its presence in the passenger vehicle segment. The joint venture focuses on the manufacturing, marketing and sale of sunroof control cables and helix cables for passenger vehicles. Through this partnership, the Company can leverage GEMOs expertise in the design, development and manufacturing of advanced cable systems for automotive applications.

The recent technical collaboration with Kyushu Yanagawa Seiki Co., Ltd., Japan, a leading motorcycle wheel supplier and expert in aluminium die-casting technology, enables the Company to capitalise on the growing demand for Aluminium Lightweighting Precision Solutions (ALPS) in the two-wheeler segment. Further, the strategic partnership with Taiwans LIOHO Machine Works Ltd supports the Company in expanding its product portfolio into new markets such as the High-Pressure Die-Casted Two-Wheeler Alloy Wheels sector.

Business Outlook

The Company expects a continued growth momentum in two-wheeler demand, supported by improving affordability and favourable policy measures. The reduction in GST rates on key auto components still continuetoactasastructuraldemanddriver,improving price competitiveness and supporting volume recovery across both OEM and aftermarket segments.

Additionally, the independent aftermarket business is also expected to benefit from the rationalisation of tax rates, which is likely to reduce the presence of unorganised players and support a shift towards organised manufacturers as seen in the second half of FY 2026.

Long-term growth in the two-wheeler segment is further supported by consistent demand from mobility platforms, e-commerce logistics and last-mile delivery services. Backed by strong OEM relationships, ongoing capacity expansion and a diversified product portfolio, the Company remains well positioned to capitalise on these opportunities. Concurrently, the strategy focuses on leveraging export opportunities to enter new markets and to expand into the Passenger Vehicle and Commercial Vehicle segments by diversifying product offerings across AB systems and ALP solutions. Furthermore, the Company prioritizes its design, R&D and engineering capabilities to develop innovative systems and solutions, thereby maintaining a strong product pipeline However, ongoing geopolitical turbulence has increased uncertainty globally, which may adversely impact the general business environment.

ESG AND CSR

The Company recognises that long-term business success is closely linked to social well-being, with CSR embedded in its core approach and evolving from traditional philanthropy to active community engagement. The commissioning of a 9.9 MWp captive solar power plant in Sirsa, Haryana, marks a significant step towards reducing the carbon footprint as well as energy costs. Riding on the success of this plant, the Company has started setting up of one more 11.55 MWp captive solar plant in Bikaner, Rajasthan, which is expected to be operational in Q1 FY27. In addition to the above, we have also invested in Group Captive Renewable Energy projects aggregating to 11.1 MWp. We continue to evaluate additional green energy initiatives as part of our long-term roadmap.

Additionally, Zero Liquid Discharge (ZLD) systems were enhanced at major facilities, such as Karoli and the Bangalore 3^rd plant, to ensure no wastewater is discharged beyond the plant boundaries.

AHSAAS Trust, the philanthropic arm of ASK Automotive, leads these initiatives across its areas of operation. Established by Chairman and Managing Director Mr. Kuldip Singh Rathee and Non-Executive Director Mrs. Vijay Rathee, the Trust has delivered lasting impact through focused programmes in healthcare, education, environmental sustainability, sports development, skill building, rural development and womens safety. One of the key CSR projects, the Vocational Training Centre at Jhajjar, is under development and the building is ready, expected to be operationalised in FY 2027.

For more details, refer to the page number 37

DISCUSSION ON FINANCIAL PERFORMANCE WITH REFERENCE TO OPERATIONAL PERFORMANCE

Financial Performance

Key highlights of the Companys performance on a consolidated basis are provided below-

THE DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS Financial Ratio Analysis - Consolidated Basis

Particulars	Unit	FY 2026	FY 2025	% Change
Debtors Turnovers	Times	16.79	17.61	-4.6%
Inventory Turnovers	Times	10.26	11.96	-14.2%
Interest Coverage Ratio	Times	9.06	10.54	-14.0%
Current Ratio	Times	1.04	1.03	1.5%
Debt Equity Ratio	Times	0.50	0.38	32.3%
Operating Profit Margin	%	10.4%	9.8%	59bps
Net Profit Margin	%	7.1%	6.9%	23bps
Return on Net Worth	%	22.7%	23.6%	-91bps

* Debt Equity Ratio increased due to an increase in Debt, mainly for Capital Expenditure ** Operating Margin and Net Profit Margin have been calculated on Total Income.

Consolidated Financial Review

Particulars	FY 2026	FY 2025
Profit After Tax	297	248
Profit After Tax Margin (%)	7.1%	6.9%
Earnings Per Share (INR)	15.1	12.6

# EBITDA Margin and Profit After Tax Margin have been calculated on Total Income.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

During FY 2026, the Company achieved consistent revenue growth across all three business segments. The Advanced Braking System segment retained its market leadership, registering growth of 17% during the year. The Aluminium Lightweighting Precision Solutions segment recorded robust growth of 30%, while the Safety Control Cable segment grew by 14%.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company maintains a strong risk management framework that includes assessment, mitigation, monitoring and reporting, aligned with its size and operational complexity.

To ensure financial discipline, accountability and economies of scale, the Company uses an established SAP HANA system, which enables internal controls through access restrictions, approval mechanisms and audit trails of all transactions.

For internal financial control, the Company conducts multiple internal audits and control checks to ensure that all transactions are authorised, recorded and reported in line with policies, procedures, accounting standards and defined workflows. This framework is supported by an independent internal audit function, a comprehensive audit program and periodic reviews by management and the Audit Committee.

The design, implementation and effectiveness of these internal control systems are regularly tested, ensuring a strong risk management framework that supports effective risk management and reporting.

RISK AND CONCERNS

To identify the risks associated with its business, the Company has established a dedicated Risk Management Committee to oversee the implementation and effectiveness of its risk mitigation strategies and plans.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCE/ INDUSTRIAL RELATIONS FRONTS INCLUDING NO. OF PEOPLE EMPLOYED

Human resource development remains a key priority at ASK Automotive, with regular training programmes designed to align the workforce with the latest technologies and global standards. The Company fosters a collaborative work environment that supports teamwork, individual growth and performance excellence, while proactively aligning its HR policies with the New Labour Codes to ensure enhanced social security and statutory compliance.

Through structured employee engagement initiatives, it maintains strong workforce relationships while enhancing motivation and productivity. This commitment to welfare is reflected in the companys focus on occupational safety and the formalisation of employee benefits in line with evolving national regulations.

Cautionary Statement

The statements made in the Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may be ‘forward-looking statements within the meaning of applicable securities laws and regulations. By nature, forward-looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. Important factors that could make a difference to the Companys operations include economic conditions affecting demand, supply and price conditions in the domestic and overseas markets in which the Company operates, changes in Government regulations, tax laws and other statutes and other incidental factors. Readers are cautioned not to place undue reliance on forward-looking statements as several factors could cause assumptions, actual future results and events to differ materially from those expressed in the forward-looking statements.