Australian Premium Solar (India) Ltd Management Discussions

The discussion hereunder covers Companys performance and its business outlook for the future. This outlook is based on assessment of the current business environment and Government policies. The change in future economic and other developments are likely to cause variation in this outlook.

The Managements views on the Companys Performance and outlook are discussed below:

ECONOMIC OVERVIEW:

Global Economy:

Global economic activity in FY 25 continued to expand at a modest pace, with growth in advanced economies slowing while emerging markets maintained relatively higher momentum. The IMFs latest outlook projects global GDP growth at 3.3% for both 2025 and 2026, indicating a stable yet modest expansion. Inflation pressures are gradually easing worldwide global inflation is expected to decline from about 6.8% in 2023 to around 4.2% in 2025, bringing many advanced economies closer to their target ranges.

The global renewable energy market - experienced unprecedented expansion in 2024, reinforcing its pivotal role in the global energy transition. According to IRENA, a record-breaking 585 GW of new renewable power capacity was added globally in 2024, accounting for over 90% of total capacity addition. This surge brought the total installed renewable energy capacity to approximately 4,448 GW worldwide.

Indian Economy Outlook:

Indias macroeconomic outlook for FY 25-26 remains robust. As of April 2025, the Reserve Bank of India (RBI) projects GDP growth at 6.5%, signaling continued momentum in domestic demand and investment activity. The National Statistics Office (NSO), in its February 2025 release, also estimated real GDP growth at 6.5% for FY 2024-25, indicating alignment in institutional forecasts and sustained economic resilience.

The Union Budget for FY 25-26 has announced a substantial increase in capital expenditure outlays, continuing the governments infrastructure push in sectors such as transport, logistics, and energy. Notably, the budget allocation for the Ministry of New and Renewable Energy (MNRE) was raised to Rs. 26,549 Crore, marking a 53% year-on-year increase reflecting a strong focus on clean energy investment.

As of 31.03.2025, Indias total installed renewable energy capacity, including large hydro, has surpassed 220 GW, reflecting an impressive ~15% year on year growth. FY 25 saw record-breaking new installations, with approximately 24 GW of Solar PV and 4.1 GW of wind capacity added, marking the highest annual additions on record.

Over the last decade, Solar power has been the primary driver of Indias renewable energy growth, now constituting nearly 48% of total RE capacity. While these gains are impressive, the pace of expansion must continue to accelerate, as the government has set a target of 50 GW of renewable additions per year for the next five years to meet the ambitious 2030 target.

Achieving this scale of expansion is estimated to require an investment of around Rs. 33 trillion ($400 billion) in investments over the next decade, necessitating the mobilization of both public and private finance.

INDUSTRY STRUCTURE AND DEVELOPMENTS

Indian Solar Industry

Indias solar energy sector continued its rapid expansion, achieving a cumulative installed capacity of 105 GW as of the end of FY 25. The year witnessed record addition of 24 GW of new solar capacity, marking over a 60% increase compared to FY 2023-24. This surge was primarily driven by large-scale project deployments in states such as Rajasthan and Gujarat. Rooftop and distributed solar also registered steady growth, supported by net metering and subsidy programs. Solar energy now accounts for nearly half of Indias total installed renewable energy capacity. With an ambitious 2030 target of ~280 GW of solar capacity, India is steadily advancing, with a robust project pipeline of ~84 GW currently under implementation

With the increased support of the Government and improved economics, the sector has become attractive from an investors perspective. As India looks to meet its energy demand on its own, which is expected to reach 15,820 TWh by 2040, renewable energy is set to play an important role.

Indian Solar PV Module and Cell Manufacturing capacity

Indias solar capacity exceeds 50 GW, indicating a major shift towards renewable energy, Startups are developing affordable solar solutions to expand clean energy access. Solar tracking technology increases sunlight capture by up to 30%. Local manufacturing of solar components is increasing, reducing import dependence

Solar installations support Indias renewable energy goals: 175 GW by 2022, revised to 500 GW by 2030.

Indian Solar Inverters Market

Market Size (FY 2022-2023): Solar inverters market size was 2,520 MW. Grid-connected solar inverters (without storage) dominated the market (80%)

Market Projections: Expected to reach INR 9,352 crore (USD 1.1 million) by 2026 and Projected CAGR of 14.4% from 2020 to 2026.

Environmental Impact: Potential energy savings of 21.1 billion kWh and Reduction in CO2 emissions by 15.1 million tons.

Indian Solar Pump Market:

Market Size: Valued at USD 0.5 billion in 2022; projected to grow to USD 2.7 billion by 2032.

CAGR: Expected compound annual growth rate (CAGR) of 15% from 2023 to 2032.

Technological Advancements: Continuous innovations in solar pumping systems are enhancing efficiency, durability, and reliability, making solar pumps a viable alternative to diesel/electric pumps.

Smart Monitoring: Innovations like smart monitoring and control systems allow for optimized water usage, remote performance tracking, and improved operational efficiency.

IoT Integration: Use of IoT and data analytics provides farmers with real-time insights and decision-making tools.

Government Support: Active promotion of solar pumps through initiatives such as the PM-KUSUM scheme, which offers financial assistance and subsidies to farmers.

Sustainability Focus: Aligns with government goals for enhancing agricultural productivity, energy efficiency, and reducing the carbon footprint of agriculture

GOVERNMENT INITIATIVES:

The Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) scheme is a government program that provides subsidies to farmers to install solar irrigation pumps.

The scheme provides the following subsidies:

Central government subsidy Up to 30% or 50% of the total cost for installing standalone solar pumps or solarizing existing grid-connected agricultural pumps.

Procurement Based Incentive (PBI) is 40 paise/kWh or Rs. 6.60 lakhs/MW/year, whichever is less

CFA around

30% of the benchmark cost or the tender cost, whichever is lower

Government subsidies are promoting rooftop solar installations across sectors, targeting 40 GW capacity

PM-KUSUM scheme aims to install 2 million solar pumps and generate 27,000 MW from barren lands.

Tax incentives, including 80% depreciation on solar assets, encourage business investment in renewable energy.

Atmanirbhar Bharat initiative promotes domestic manufacturing of solar components to reduce imports.

India initiated the International Solar Alliance with 121 countries, targeting $1trillion in solar energy investments.

SUMMARY OF OUR BUSINESS:

Our company is primarily engaged in the manufacturing of Solar Panels and installation of solar panels and solar modules. The industry term for solar panel is PV Module (Photovoltaic Module) which refers to setup for generating electricity from sunlight, using semiconductor materials in devices called photovoltaic cells or solar cells. Currently in the solar panel segment, we manufacture both monocrystalline and N Type Topcon Solar Panels.

Our Core business can be divided in following categories: a) Manufacturing of Monocrystalline and N Type Topcon Solar Panels b) Installation Services for Solar Rooftop and Solar Pump c) Offered other products like Solar Grid Inverters and Solar Water Pumps

The Only Manufacturer Offering Both Solar Panels and Inverters Under Its Brand Name

Our company is also involved in the business of enabling the sustainable development through adoption of renewable energy and with energy transition to renewables.

Through our installation services, we have our footprints across India and currently working with 38 cities to transform them to solar cities and enable the growth of solar in states like Gujarat, Punjab, Uttar Pradesh, Goa, Maharashtra, Telangana, Uttrakhand, Jharkhand, Delhi/NCR, Odisha, Karnataka, Kerala, J&K, etc.

SEGMENT WISE OR PRODUCT-WISE PERFORMANCE:

The Companys operation predominantly comprises of only one segment. In view of the same, separate segmental information is not required to be disclosed as per the requirement of Indian Accounting Standard 108 Operating Segment.

We derive our revenue from following major products:

A. Solar Rooftop Panels:

Monocrystalline Solar Panels: Variants: Mono 535w 144C, Mono 540w 144C, Mono 540w 144C, Mono 550w 144C, Mono 555w 144C and Mono Bifacial 520w545C

N-Type TopCon: Variants: Topcon 560w to 600w 144C, Topcon 610w to 650w 156C

No. 1 Rank in providing Rooftop solar panel solutions in Gujarat for the past two years. Equipped with state-of-the-art, world-class technology, APS solar modules are designed for optimal performance, even under adverse conditions.

APS actively supports the "Make In India" campaign, aligning its mission with the Government of Indias initiative to promote domestic manufacturing.

B. Solar Grid Inverter:

APS is a top choice for solar inverters in the Indian market, recognized for offering high-quality, locally manufactured, grid-connected inverters for both residential and commercial applications. APS inverters are known for their proven efficiency, providing superior integration, flexibility, and performance.

The brand is highly regarded for its reliable and effective solar inverter solutions, coupled with a strong commitment to after-sales service and an exclusive warranty on all APS inverters.

C. Solar Water Pumps:

APS provides solar-powered water pumps and these are a highly cost-effective solution that enables people living/operating in these locations to spend more time growing crops and making more money rather than worrying about the water and power crisis.

The APS series solar pump is a state-of-art technology and designed to provide an eco-friendly and energy efficient solution for pumping of water from Bore-well, Open-well or for domestic applications driven by solar energy.

D. EPC Services:

APS provides installation services for Rooftop solar for both residential and commercial usage and installation services for solar pump across country.

APS expanding its on-grid residential solar systems across India, providing feasible solar solutions for commercial and residential customers and also offers state-of-the-art solar rooftop solutions to industrial as well as commercials to reduce reliance on the grid.

INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has adequate internal control procedures commensurate with its size and nature of business in India. The Company has clearly laid down policies, guidelines and procedures that form a part of the internal control systems. The adequacy of Internal Control Systems, which encompasses the Companys business processes and financial reporting systems, is examined by the management as well as by its internal auditors at regular intervals.

The internal auditors carry out audits at regular intervals in order to identify weaknesses and suggest improvements for better functioning. The observations and recommendations of the Internal Auditors are discussed by the Audit Committee to ensure effective corrective action.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL

PERFORMANCE:

The key strategy will be focused around:

1. Timely completion of Orders

2. Financial strength & liquidity

3. Professional Management

4. Brand Equity

Financial Highlights:

(Rs. In Lakhs)

	STANDALONE-YEAR ENDED		CONSOLIDATED-YEAR ENDED
PARTICULARS	31/03/2025	31/03/2024	31/03/2025	31/03/2024
Revenue From Operations	43280.30	14967.29	43887.73	-
Other Income	224.58	64.21	226.29	-
Total Income	43504.88	15031.51	44114.02	-
Less: Total Expenses before Depreciation, Finance Cost and Tax	37720.15	14033.02	38231.99	-
Prot bef ore Depreciation, Finance Cost and Tax	5784.73	998.49	5882.03	-
Less: Depreciation	398.73	146.91	398.77	-
Less: Finance Cost	119.83	26.38	120.14	-
Prot B efore Tax	5266.17	825.20	5363.12	-
Less: Current Tax	1317.94	151.89	1317.94	-
Less: Deferred tax Liability (Asset)	65.70	58.02	65.70	-
Prot A fter Tax	3882.53	615.28	3979.48	-

All activities of the company revolve around the main business and as such there is no separate reportable business segment and all the operations of the company are conducted within India as such there is no separate reportable geographical segment.

OUTLOOK

We believe, the Company has a great deal of opportunities for future growth. We believe our management team has a long-term vision and has proven its ability to achieve long term growth of the Company. Our strengths lie in our track record of completing our projects efficiently and effectively within the stipulated time. It is critical in the renewable industry that projects are completed as per contracted schedule.

We have a track record of timely execution of the projects which minimizes cost overruns and eliminates any possibilities of penalties and liquidated damages, while earning repeat orders from our clients. We have never been penalized for delayed execution of a project. We intend to take advantage of the growing opportunities in renewable development by strengthening our expertise in software, advisory, development of solar plants and enabling the adoption of distributed solar for new prospects for growth.

The Company also continues to converge on improving business capabilities and enhancing growth levers. Improved R&D capabilities, enhanced retail format expansion, design abilities and better operational management amongst others will help reinforce our competitive advantages.

RISK AND CONCERNS:

A well-defined risk management mechanism covering the risk mapping and trend analysis, risk exposure, potential impact and risk mitigation process is in place. The objective of the mechanism is to minimize the impact of risks identified and taking advance actions to mitigate it. The mechanism works on the principles of probability of occurrence and impact, if triggered. A detailed exercise is being carried out to identify, evaluate, monitor and manage both business and non-business risks.

OPPORTUNITIES AND THREATS:

The industry is highly fragmented in the hands of several organized and unorganized players. Due to the attractiveness of the opportunity and large potential, competition across the industry in India is rising significantly.

The Companys weakness is limited recognition due to its relatively recent founding; the company might have lower brand recognition and while digital innovation is a strength, reliance on technology could pose a risk if there are disruptions in the digital infrastructure. The possible threats are the regulatory changes, competition and the technology shifts happening in the sector. There are no entry barriers in our industry, which puts us to the threat of competition from new entrants.

SWOT:

Strengths:

Experienced Promoters and Management Team

Pioneer in the Industry having first mover advantage

Scalable Business Model

Modern Manufacturing Facility

Weaknesses:

Dependency on suppliers for raw material

Geographically concentrated

Capital Intensive Business

Opportunities:

Government Incentives

Growing Solar Adoption

Cost competitiveness

Policy Support for Domestic Manufacturing

Renewable Energy Targets

Increasing Investments

Threats:

Price Volatility on raw material

Change in Technology

Change in government policies

Supply Chains

Climatically Challenges

Unavoidable Circumstances

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS:

Human resource is an asset to any industry. We believe that our employees are the key to the success of the business. Our manpower is a mix of experienced and young personal which gives us the dual advantage of stability and growth. The Companys relations with the employees continued to be cordial and harmonious with its employees. It considers manpower as its assets and that people had been driving force for growth and expansion of the Company. The Company acknowledge that its principal assets is it employees. The Company has continued its efforts in building a diverse and inclusive workforce.

As on March 31, 2025, the Company had total 430 Permanent employees on roll in the company.

IN KEY FINANCIAL RATIOS:

	PARTICULARS	NUMERATOR/ DENOMINATOR	31-MAR-25	31-MAR-24	CHANGE IN %	REASON FOR VARIANCE
(a)	Current Ratio	Current Assets	1.60	2.82	-43.30%	Due to increase in current liabilities
		Current Liabilities
(b)	Debt-Equity Ratio	Total Debts	0.09	0.20	-54.66%	Due to repayment of borrowing
(c)	Debt Service Coverage Ratio	Shareholders Equity Earnings available for Debt Service Interest + Installments	24.65	10.53	134.14%	Due to increase in prot
(d)	Return on Equity Ratio	Net Prot aft er Tax	1.98	0.62	219.68%	Due to increase in prot
(e)	Inventory turnover ratio	Average Shareholders Equity Total Turnover	16.41	33.34	-50.79%	Due to increase in inventory level
(f)	Trade Receivables turnover ratio	Average Inventories Total Turnover Average Account Receivable	14.50	11.43	26.82%	Due to increase in revenue from operations
(g)	Trade payables turnover ratio	Total Purchases	7.64	7.11	7.49%	-
(h)	Net capital turnover ratio	Average Account Payable Total Turnover	6.50	3.79	71.42%	Due to increase in net working capital
(i)	Net prot after tax ratio	Net Working Capital Net Prot	0.0904	0.0411	119.95%	NA
(j)	Return on Capital employed	Total Turnover Earnings before interest and taxes Capital Employed	0.55	0.14	292.58%	Due to decrease in debt and increase in Prot
(k)	Return on investment	Return on Investment Total Investment	NA	NA	NA	NA

CAUTIONARY STATEMENT:

Statements in the Management Discussion and Analysis report may be forward looking statements within the meaning of the applicable laws and regulations. Actual results may differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include among other, climatic conditions, economic conditions affecting demand, supply and price conditions in the domestic and overseas markets in which the Company operates, changes in the Government regulations, tax laws and other statutes and incidental.

Registered oc e:	For, Australian Premium Solar (India) Limited
Tajpur, NH-08 TA-Prantij, Sabarkantha
	By order of the Board of Directors
Gujarat- 383205 India
Place: Ahmedabad	Nikunjkumar Chimanlal Patel
Date: August 29, 2025	Chairman & Executive Director
	DIN: 07834023