Axis Solutions Ltd Management Discussions

Company, with its portfolio encompassing industrial analysers, panel accessories, HVAC shelters and automation modules, is strategically positioned to leverage this industry realignment. Our technical design capabilities and product customization strengths meet the growing need for lifecycle supported solutions in both domestic and international markets.

CPCB Guidelines on Continuous Emission Monitoring Systems (2023)

DPIIT: Make in India Reports

Frost & Sullivan Industry Reports (2023 24) www.axisindia.in, Axis internal product databases

Internationally, our geographic expansion into the UAE and European markets is expected to yield a compounded annual growth rate (CAGR) of 25 28% in export revenue. We are targeting an increase in our global business contribution to 25 30% of total revenue by FY2028. Company is committed to developing system integrated solutions that are compliant with international directives such as ATEX, IECEx and CE. On the digital front, the Company is integrating cloud based data acquisition systems, remote diagnostics and smart enclosures into its product suite. These innovations support recurring revenues through Annual Maintenance Contracts (AMC), calibration services and predictive maintenance modules. Our internal financial roadmap projects a top line of 650 700 Crores by FY2028, with an EBITDA margin expansion to 14 15%. Investments in localized warehousing, engineering hubs and service infrastructure will aid cost optimization and delivery speed. With a stable order book, diversified customer base and sustained demand across Greenfield and brownfield projects, Company remains confident in its forward looking operational strategy.

Axis Solutions Projections Fy2024 28

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PwC Industrial Automation Trends 2025

www.axisindia.in, internal sales and business plans

1. Make in India & Local Manufacturing Push

2. Rapid Industrial Automation Growth in Emerging Markets

The growing emphasis on digitalization, Industry 4.0 adoption, and ESG (Environmental, Social, and Governance) goals is driving increased demand for advanced instrumentation, data analytics, remote monitoring, and MRO (Maintenance, Repair, and Overhaul) solutions. These trends reflect a broader shift toward smarter, more sustainable, and efficient industrial operations, creating opportunities for the Company to offer value added technologies and services aligned with evolving customer and regulatory expectations.

3. MRO Services & Lifecycle Contracts

Post installation support, spares management, and Annual Maintenance Contracts (AMC) present strong opportunities to generate recurring revenue from the existing customer base. By offering comprehensive after sales services, the Company can enhance customer satisfaction, strengthen long term relationships, and ensure sustained engagement beyond initial project delivery. This focus also contributes to revenue stability and improved lifecycle value of deployed systems.

4. Entry into New Verticals

5. Government Driven Sustainability Initiatives

Stringent environmental regulations in the power, cement, steel, and oil & gas industries are driving the need for advanced monitoring and control systems. Company is well positioned to capitalize on this demand, leveraging its expertise and product portfolio to help clients achieve compliance while improving operational efficiency and sustainability.

1. Price Competition from Local Low Cost Vendors

The market for basic instrumentation products remains highly competitive, with numerous small players often resorting to aggressive pricing strategies to gain market share. This price undercutting can exert pressure on margins, particularly in commoditized segments. However, the Company continues to differentiate itself through product quality, technical expertise, and value added services, maintaining its competitive edge in a challenging pricing environment.

2. Disruptive Technology Shifts

Rapid advancements in wireless, AI integrated, and self calibrating sensors are transforming the industry, potentially rendering some conventional products obsolete. The Company is actively monitoring these trends and investing in innovation to ensure its offerings remain relevant and competitive

3. Policy & Compliance Risks in Export Markets

Expanding into Middle East, Southeast Asia, and European markets involves navigating regulatory certifications, establishing reliable local partnerships, and managing region specific political and economic risks. The Company is taking a structured approach to mitigate these challenges while pursuing strategic growth in these geographies.

4. Talent Retention in Technical Sales & Support

The migration of skilled manpower to multinational corporations or competitors poses a potential challenge in maintaining execution excellence and managing long standing customer relationships. The Company is addressing this risk through talent retention initiatives, continuous skill development, and a strong organizational culture that fosters employee engagement.

5. Volatile Project Based Business

The Company has strategically aligned its operation around three core business segments: Automation and Digitalization, Infra & Water and Industrial Engineering & Systems, each reflecting its commitment to innovation, sustainability and long term value creation. The Automation and Digitalization segment focuses on delivering smart, connected solutions that enhance efficiency and operational intelligence across industries. The Infra & Water segment addresses critical infrastructure needs, with an emphasis on sustainable water management, urban development, and environment resilience. The Industrial Engineering & Systems segment provides integrated engineering solutions and turnkey systems for complex industrial applications, supporting clients in achieving productivity, reliability, and technological advancement. These strategic focus areas position the Company to capitalize on evolving market trend and drive growth across diverse sectors.

The Automation and Digitalization Segment, introduced during the year, recorded revenue of 2391.46 Lakhs and a profit before interest and Tax (EBITDA) of Rs. 374.89 lakhs, reflecting strong initial traction in smart technologies and digital solutions.

The Infra & Water Segment, too introduced during the year, recorded revenue of 6087.03 Lakhs and a profit before Interest and Tax (EBITDA) of Rs. 1832.74 Lakhs, driven by increased execution of water infrastructure and urban development projects.

The Industrial Engineering & Systems segment remained the largest contributor with 11,588.94 Lakhs in revenue and 1,646.59 lakhs in (EBITDA), though it saw a decline compared to the previous year due to lower project volumes and margin pressures.

All necessary actions as stipulated in the Resolution Plan including settlement of admitted claims, infusion of funds, issuance/ allotment of securities (if applicable), and reconstitution of the Board of Directors have been completed within the prescribed timelines. Consequently, the Company has formally exited the CIRP in compliance with the Insolvency and Bankruptcy Code, 2016.

Technology Obsolescence and The growing reliance on To mitigate this risk, the Innovation Risk proprietary products, such as Company has established an in turbidity and chlorine analyzers house R&D cell dedicated to within the Automation & areas such as sensor calibration, Digitalisation vertical, brings embedded systems, and cloud with it the risk of technological based diagnostics. Additionally, obsolescence. A failure to it has integrated collaborations continuously upgrade and with technical institutes and enhance product capabilities incorporated pilot feedback may expose the Company to loops into its innovation increased competitive pressure lifecycle to ensure continuous and the potential loss of product enhancement and relevance in digitally driven technological relevance. tenders and customer requirements.

Supply Chain and Import A significant portion of key To mitigate these risks, The Dependencies components used in sensors, Company is actively pursuing analyzers, and automation domestic vendor development panels continues to be sourced and implementing a dual from Europe, the US, and East sourcing strategy to reduce Asia. This dependence on global reliance on single geographies. supply chains exposes the The Company also undertakes Company to risks arising from partial hedging of currency international supply exposure and maintains disruptions, freight cost strategic inventories of high inflation, and foreign exchange lead time components to volatility, all of which can safeguard against supply adversely affect cost structures disruptions and cost volatility. and lead to delays in delivery schedules.

(in Lakh except EPS)

The Company has also adopted various policies and procedure to safeguard its interests. These policies and procedures are reviewed from time to time. A proper reporting mechanism has been implemented in the organization for reporting any deviation from the policies and procedure.

Axis firmly believes that our team members are our greatest asset. We are proud to have a talented team of 250+ professionals who consistently perform at their best. At Axis, the management embraces a unique, parent like approach, creating a workplace that feels like home and fostering a true sense of belonging and family among all members.

Our leadership style is affiliative, participative, and pacesetting and focused on building commitment, harmony, and teamwork, while striving for excellence in everything we do. We are dedicated to cultivating a culture of respect, care, and mutual honor.

Additionally, Axis places a strong emphasis on Learning Beyond Classrooms by investing in future talent through structured recruitment cycles. We offer Summer and Final Year Internships for Engineering and MBA students, organize factory visits for real time shop floor and manufacturing exposure, and conduct Faculty Development Programmes, Guest Lectures, and Technical Workshops. These initiatives not only enhance industry academia collaboration but also help us identify and nurture future talent from the grassroots.

In recognition of our employee first culture, Axis has been certified as a Great Place to Work for two consecutive years a testament to our commitment to creating a positive, engaging, and growth driven workplace.

This inclusive, growth oriented, and open culture makes Axis a place where every team member feels valued, respected, and inspired to grow together.

As on 31st March, 2025 the total number of permanent employees stood at approximately 169.

The financial statements of the Company were prepared in accordance with the Indian Accounting Standards (Ind AS), ensuring consistency with the prescribed accounting guidelines. No departures from these standards were made during the preparation of the financial statements.