Auto Pins India Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS

Auto Pins (India) Limited operates within the vibrant and competitive Indian auto-components sector, specializing in the manufacturing of automotive leaf springs and parabolic leaf springs primarily serving the commercial vehicle (CV) and aftermarket segments.

The Indian auto-component industry is an essential pillar of the national economy, closely tethered to original equipment manufacturers (OEMs) and replacement market dynamics. During the financial year 2025-2026, the sector faced headwinds characterized by fluctuating raw material prices, modest demand recovery in specific segments of heavy commercial vehicles, and intensified pricing pressures. Despite these structural challenges, the push toward infrastructure development and logistics expansion continues to provide long-term underlying demand for heavy-duty suspension systems.

COMPANYS PERFORMANCE

For the financial year ended March 31, 2026, Auto Pins (India) Limited reported a moderation in its top-line and bottom-line metrics, reflecting broader macro-industrial adjustments and input cost volatilities.

• Total Revenue / Net Sales: The company registered total revenue of ?37.37 Crores (or approx. ?37.11 Cr in core operations) for FY 2025-2026, marking a decrease of approximately 19.80% compared to ?46.61 Crores recorded in FY 2024-2025.

• Net Profit: The Profit After Tax (PAT) stood at ?0.27 Crores, compared to ?0.33 Crores in the previous fiscal year, reflecting a contraction of about 18.18%.

• Profit Margins: Net profit margins remained tight but stable at approximately 0.72% (vs. 0.71% in FY 20242025), emphasizing a strong need for continued cost rationalization.

• Earnings Per Share (EPS): The basic and diluted EPS for the year stood at approximately ?0.48 per share. The reasons for decline in companys performance could include:

Increased Competition: The leaf spring market is intensely competitive, with both global and regional players vying for market share.

Technological Advancements: The shift towards alternative suspension systems like air suspension in some segments and the adoption of advanced materials like composites for leaf springs, aiming for lighter weight and higher performance, might have impacted the demand for this companys traditional Leaf Springs products.

Fluctuating Raw Material Prices : Prices of materials like steel, crucial for leaf springs, can impact manufacturing costs and profitability.

Other Operational Issues: Internal factors specific to the company, such as production inefficiencies, marketing challenges, or customer relationship management, could also contribute to the decline. Economic Factors: Broader economic conditions can affect a companys performance, even one that is generally stable.

Despite the decline, the directors are confident in the companys future performance and are focused on improving the situation. They may be planning to address the challenges through innovation, diversification, or strategic adjustments in their product offerings or operations.

OPPORTUNITIES AND THREATS.

The automotive leaf springs market in India has witnessed significant growth due to the countrys expanding automotive industry. Leaf springs are crucial components in the suspension systems of commercial vehicles, and the rise in demand for transportation and logistics services has contributed to the increased adoption of leaf springs. However, the market faces some challenges that affect its growth prospects. One of the key challenges is the growing preference for air suspension systems over traditional leaf spring setups in certain segments. Air suspension systems offer better ride comfort and adjustability, making them attractive for certain commercial vehicle applications. To remain competitive, leaf spring manufacturers must focus on improving product durability, weight reduction, and overall suspension performance. Furthermore, the market faces intense competition, both from domestic and international manufacturers, leading to pricing pressures and narrower profit margins. To thrive in such a competitive landscape, companies need to innovate and diversify their product offerings to cater to different vehicle types and customer preferences. Additionally, the fluctuating prices of raw materials, such as steel, impact the manufacturing costs and challenge the market players to maintain stable pricing for their leaf springs. Proper supply chain management and strategic sourcing become crucial to mitigate these challenges and sustain growth in the India automotive leaf springs market.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

The company primarily focuses on its core product line—Automotive Leaf Springs and Parabolic Leaf Springs.

• The replacement market segment continued to anchor volume stability during a year when OEM demand saw subdued movement.

• Efforts to fine-tune product mixes toward heavy-duty parabolic designs helped cushion margins amidst downward revenue pressures.

Particulars / Financial Ratios	FY 2025-2026	FY 2024-2025	% Change	Reasons for change in ratio by more than 25%
Trade Receivables Turnover Ratio	12.05	7.75	55.4%	Due to decrease in trade receivable
Net Profit Ratio	0.01	0.0	2.1%	NA
Return on Net Worth / Equity (RoNW / ROE)	0.03	0.04	20.9%	NA
Debt-to-Equity Ratio	0.60	0.56	7.0%	NA
Current Ratio	1.26	1.29	-2.4%	NA
Inventory Turnover Ratio	2.35	3.44	-31.6%	Due to increase in average inventory

DETAILS OF ACCOUNTING TREATMENTS

Accounting treatment are mentioned in Financial Statement and Auditors report for the year ended 31.03.2026 that is the part of Annual Report.

WORKING CAPITAL MANAGEMENT

Your Company practices prudent working capital management, methodologies and adequate planning for managing its day-to-day requirements of working capital funds. The Company focuses on timely receivables, realizations, and low inventory level considering JIT supply to customers which helps in reducing the working capital requirement. The funds are borrowed from Banks to bridge the working capital gap on weekly basis to avoid fixed liability of interest.

HUMAN RESOURCE MANAGEMENT

The Company believes that its employees are the most valuable assets. It encourages passion, commitment, innovation and meritocracy, and this has enabled the company to sustain its leadership position. The Company is focused not only in attracting but also in retaining talented individuals across Companys business units. It does this by ensuring that the employees professional growth is consistent with their aspirations, and also within the framework of the corporate goals.

During the period under review, the Company maintained cordial relationship with all its employees. The Directors would like to acknowledge and appreciate the contribution of all employees towards the performance of the Company.

FUTURE OUTLOOK

Looking ahead to FY 2026-2027, Our Company remains cautiously optimistic and plans to focus on:

• Enhancing manufacturing efficiency and asset turnover.

• Strict working capital management to improve operational cash flows.

• Deepening market penetration across key regional distribution channels to revive volume growth. FORWARD LOOKING STATEMENTS

Investors are cautioned that statements in this management discussion and analysis describing your Companys objectives, projections, estimates and expectations may be forward looking statements within the meaning of applicable laws and regulations. Actual results might differ substantially or materially from those expressed or implied.

Important developments that could affect your Companys operations include a downtrend in the automobile industry global or domestic or both, significant changes in political and economic environment in India or key markets abroad, tax laws, litigation, labour relation and interest costs.

Place: New Delhi Date: 02.09.2026	Sd/-	Sd/-
	RAJBIR SINGH	SUBHASH JAIN
	MANAGING DIRECTOR	DIRECTOR
	DIN: 00176574	DIN: 00176493
	9 SOUTHERN AVENUE	D-681-682, J J
	MAHARANI BAGH, NEW	COLONY, TIGRI,
	DELHI - 110065	NEW DELHI - 110062

ANNEXURE -6

CERTIFICATE BY MANAGING DIRECTOR & CHIEF FINANCIAL OFFICER TO THE BOARD

To,

The Board of Directors AUTO PINS (INDIA) LIMITED

New Delhi

Dear Sir(s),

We, Rajbir Singh, Managing Director and Pradeep Singh Chauhan, Chief Financial Officer of Auto Pins (India) Limited certify that :

(A) We have reviewed financial statements and all the notes on accounts and the Boards report for the year ended 31 st March, 2026 and to the best of my knowledge and belief that:

1. These statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading;

2. These statements together present a true and fair view of the companys affairs and are in compliance with existing accounting standards, applicable laws and regulations;

(B) No transactions entered into by the Company during the above said period which are fraudulent, illegal or violation of the companys code of conduct;

(C) 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 company 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 take to rectify these deficiencies; and

We further certify that the following information have been indicated to the Auditors and the Audit committee:

I. There have been no significant changes in internal control over financial reporting during the period under review;

II. There have been no significant changes in accounting policies during the period under review; and;

III. There have been no instances of significant fraud of which we have become aware and the involvement therein, of the management or an employee having a significant role in the Companys internal control system over financial reporting.