Batliboi Ltd Management Discussions

Company Overview:

Batliboi, incorporated in 1941, has established itself as a leader among engineering companies. The companys enduring success is built on strong beliefs and values, which have supported its growth over the years. of activity, including manufacturing ,Batliboi has driven technologic a innovation engineering, its various fields contracting, and marketing. The company operates manufacturing plants in Surat, India, and Peterborough, Canada, where it produces advanced machinery. This machinery is either developed in-house or in collaboration with leading engineering companies worldwide.

The company has undertaken major turnkey projects both in India and internationally, reflecting its capability as engineers and contractors. With a strong focus on customer service, Batliboi operates through various Business Groups at the corporate level. These groups are supported by a dedicated team of engineers who provide comprehensive pre-sales and post-sales service through a network of multiple offices across the country.

Batlibois operations encompass Machine Tools, Air Engineering Textile Machinery and Environmental Engineering Group. The company is committed to investing in, diversifying and expanding its operations in both manufacturing and marketing, contributing to the Make in India for a strong and prosperous India.

The Management of Batliboi Limited presents the analysis of performance of your Company for the year ended 2025-2026 and its outlook for the future. This outlook is based on assessment of the current business environment and the expectations, estimates and projections of the Directors and Management of the Company. It may vary due to future economic and political development, both in the Indian and international economies and due to other factors beyond control.

A. PERFORMANCE AND OUTLOOK

Batliboi Textile Engineering Group

Business Structure

The Textile Engineering Group comprises of Air Engineering and Textile Machinery.

Air Engineering Group

Air Engineering Group is a leading manufacturer of complete Auto control type Humidification plant equipment, Waste collection equipment along with Automatic controls for Textile Spinning, Weaving and Knitting plants. Its activities have now diversified to provide air control requirements for food, pharmaceuticals and general industry

Industry structure and developments

The overall business environment in the textile sector continue to be challenging primarily due to tariff issues, general instability in Bangladesh and West Asia conflict, cotton textile sector under stress due to rising cotton prices. Inspite of these adversaries, we have finalised some sizeable orders in Q4,

Opportunities:

We expect the textile industry to do better with introduction of the new textile Incentive policies and reduction in electricity tariff rates.

Going forward our focus will be to generate business on retro-fit segment, export market like Africa and South Asia market. With a government now in place, the situation in Bangladesh will stabilise. All this augurs well for business in FY 2026-2027

Threats, Risk & Concern:

Uncertainty due to geo political situation, any tariff related development and subdued local demand will impact this industry.

Outlook

With healthy order backlog and adequate enquiries, the Company is optimistic for FY 2026-2027.

Internal Control System and their Adequacy

The group has adequate internal controls in place.

Textile Machinery Group

The textile machinery group caters to the spinning, knitting, and processing machinery requirements of the textile industry. Despite facing high volatility in overall demand and raw material prices during the review period, we have successfully retained our overall market Share and average business volume. This was achieved through strategic expansions of our product portfolio and extending our geographical reach through key representations.

Opportunities:

- Anticipated investments in Dyeing, Printing and Automation products,Open End Spinning and Knits present lucrative prospects, both in the domestic and international markets.

- There is a growing emphasis on high-productivity automated sustainable technologies, providing avenues for innovation and market expansion.

- The realignment of the global supply chain offers emerging opportunities for strategic partnerships and market penetration.

Threats, Risks, and Concerns:

- Potential slowdown in European business due to geopolitical tensions, trade wars may lead to deferral of investment decisions and impact market stability and principal stability.

Outlook:

Despite the potential threats and uncertainties, we maintain a cautiously optimistic outlook on a long term basis. Barring any unforeseen circumstances such as geopolitical tensions, we anticipate continued growth and resilience in the textile machinery sector.

2. Batliboi Machine Tool Group (BMTG)

Business Structure

The Machine Tool Group is engaged in manufacturing, selling/trading, and servicing of various types of metal forming and metal cutting machine tools.

Manufacturing : Batliboi manufactures CNC machines viz. Turning Centers, Vertical Machining Center, Vertical Turning Lathes and Double Column Machining Centers and conventional radial drilling machines.

Trading : The Company is also engaged in sales and service as an agency house representing various overseas reputed companies from Czech Republic, Belgium, Italy, Germany, South Korea, China and Taiwan as well local manufacturers of Metal Cutting and Metal Forming machine tools.

Machine Tool Trading (MTT)

Industry structure and developments

Demand for Heavy Machine Tools is picking up, primarily due government push for private industry participation in defence, aerospace and power industries.

Opportunities

In sectors like Fabrication and Wind-Energy, new entrants have opened up opportunities. The opportunities have increased for specialized equipment like Isostatic Presses. There is an improvement of demand for heavy-duty machines.

With increase spending by government and private sectors in infrastructure expansion, strategic and general manufacturing sectors, we are optimistic that demand improves in FY 2026-2027.

Threats, Risks and concerns

Delay in decision making due to government policies as well as in the strategic sectors may affect finalization of orders.

Outlook

We are cautiously optimistic for improved demand for heavy metal cutting and forming machine tools as a result because of the improvement in economy and the large spending on infrastructure and strategic sectors by the government and the private sector.

Internal Control system and their adequacy

The group has adequate internal controls in place.

Machine Tool Manufacturing (MTU & Foundry)

Batliboi manufactures CNC machines viz. Turning Centers, Vertical Machining Centers, Vertical Turning Lathes and Double Column Machining Centers and conventional radial drilling machines.

Developments and Performance

This group was able to improve market share with improvement in quality and introduction of more new models of

CNC machines.

For FY 25-26 all machines under the capital expenditure initiative were progressively commissioned resulting in the top line growth of around 30% as compared to FY 24-25.

Opportunities

The domestic market continues to be robust for machine tool industry and will continue to grow at CAGR of 7 to 8%. Demand will be driven by auto and auto component, aerospace, defence, strategic sectors and agriculture. Based on the market feedback we are now expanding our product range for higher size vertical machine centres as well as small size vertical turning lathes. These two products have good demand in the mould and die industry.

We are confident that we shall continue to grow at a similar pace in FY 26-27.

Threats, Risks and concerns

The current geo political situation in the gulf remains challenging and any adverse impact on the crude prices will likely to impact our input costs. This may also likely to slow down the capex investment by the major engineering industries .

Internal Control system and their adequacy

The group has adequate internal controls in place.

Batliboi Environmental Engineering Group (EEG)

Business Structure

The Environmental Engineering Group (EEG) comprises of Air Pollution Control Equipment, Industrial Fans and Projects for Green Hydrogen.

EEG is a one of the leading solution provider in domain of Air pollution control/ Product recovery, Industrial Fans for Steel, Power, Oil & Gas, Sugar, Cement and Solar panels manufacturing Industries.

EEG has in-house capabilities of providing 100% Make in India solutions for the industry spectrum as mentioned above.

Industry structure and developments Steel Industry :

- India s domestic demand continues to expand by 9-10% as per ICRA which augurs well for the demand for products and services.

Energy Industry- Oil & Gas and Solar-

With increasing focus on upgradation in Oil & Gas sector and increasing demand of solar energy, there growing opportunities available in the market for us to cater

Power Industry :

- With increasing demand in electricity the power sector is expected to grow in conventional, non- conventional and renewable sectors. This will also require product and services which we offer.

Cement Industry

- This sector is expected to revive slowly throughout the 2025 to 2027 and we are now focusing on this sector.

Overall Economic Outlook:

Growth in Indian market is mainly driven through Infrastructure development and Consumption. The robustness of this growth is going to boost overall sentiments in the market.

Due to recent geo-political conflicts, there is Wait and Watch strategy adopted by almost all industries which is causing delay in Project executions despite various announced projects.

Opportunities and threats Opportunities:

EEG is expecting to ride upon the increase in production of crude iron initiative and expects increase in new project announcement in the current financial year.

EEG is actively working with Utility Boiler and Captive Power Plant Boiler manufacturers and expects this business to give consistent growth in business.

EEG is actively pursuing cases in Oil & Gas and Solar industry and will selectively choose the projects based on Profitability and Cash flow.

EEG has also started increasing its visibility in Cement market and systematic efforts will ensure getting visibility and improved acceptance in the Cement industry too.

Threats Risk & Concern:

The market has become very competitive and maintaining margin has become a challenge. prices mainly Steel and Globaluncertaintyiscausingfluctuation other utilities required in fabrication and other bought outs

EEG is consciously working on keeping our margins intact through design improvement, alternative vendor devel- opment and leveraging bulk buying etc.

Outlook

With a healthy order backlog and good enquiries in hand EEG is optimistic for consistent business growth.

Internal Control System and their Adequacy

The group has adequate internal controls in place.

Quickmill Inc. Canada Business Structure;

This 100% subsidiary of the company is headquartered in Peterborough, Canada and is engaged in the manufacture and sale of large size Gantry Drilling & Milling machines. It caters to the global market for the Energy, Structural Steel, Aviation, large equipment manufacturing and Job shop manufacturing sectors.

Development & Performance

Profitability in FY 25-26 was marginally lower than projected. However with healthy pending orders at the start of the year and strong prospects in the pipeline should considerably improve the performance in FY 26-27.

Opportunities, threats & Outlook

Focus on new business in the Gulf region and Mexico should yield positive results in FY 26-27. North America business is expected to improve compared to last year. The Canadian government intends to invest in defence sector and railways which augurs well for Quickmill to grow domestically in coming years.

Threats

Any adverse impact of renewal of USMCA (US Mexico Canada Agreement) agreement may pose challenges for North America business due to possibility of re-imposition of tariffs by USA.

Internal Control system and their adequacy

There is adequate internal controls system in place.

Biconcave Renewable Envirotech Private Limited (BREPL)

1. Industry Structure and Developments

The industrial effluent treatment sector is critical enabler of environmental compliance, particularly for water-intensive industries. The market is driven by a combination of stringent regulatory mandates, increasing freshwater scarcity, and rising sustainability expectations.

The industry structure comprises:

ETP solution providers offering turnkey Effluent Treatment Plants (ETPs) and Zero Liquid Discharge (ZLD) systems

T echnology providers specializing in membranes, evaporation, and biological treatment

O&M service providers ensuring long-term plant performance

A key industry trend is the transition from conventional physico-chemical and biological treatment systems to advanced multi-stage treatment solutions, including:

Membrane-based systems (UF, NF, RO)

- Membrane Bioreactors (MBR)

- Multi-Effect Evaporators (MEE) and Agitated Thin Film Dryers (ATFD)

- Crystallization and salt recovery systems

Regulatory authorities such as the Central Pollution Control Board (CPCB) and State Pollution Control Boards (SPCBs) have mandated:

Zero Liquid Discharge (ZLD) for specific sectors and clusters

Strict limits on parameters such as BOD, COD, TDS, and heavy metals

Installation of Online Continuous Effluent Monitoring Systems (OCEMS) for real-time compliance Industries such as textiles (e.g., Tirupur Cluster), chemicals, pharmaceuticals, and dyes are under increased scrutiny, accelerating demand for reliable, high-efficiency treatment solutions.

The sector is gradually shifting toward integrated water management, focusing not only on compliance but also on water recovery, reuse, and resource optimization.

2. Opportunities:

BREPL operates in a segment with strong long-term demand visibility, supported by both regulatory and Sustainability drivers:

Mandatory ZLD implementation in high-pollution industries is creating sustained demand for advanced treatment systems.

Growing need for high water recovery systems (90 95%+), especially in water-scarce industrial zones.

Significantopportunity in revamping and upgrading underperforming ETPs, where legacy systems fail to meet compliance norms.

Increasing demand for energy-efficient and cost-optimized ZLD solutions, addressing concerns around high operating costs.

Strong potential for O&M contracts, performance optimization, and lifecycle management of installed plants.

Adoption of digital monitoring, automation, and predictive maintenance systems for improved plant reliability.

3. Threats

The Company faces industry-specific competitive and operational challenges:

Presence of low-cost, non-optimized ETP solutionsin the market, impacting pricing discipline.

Increasing competition from global technology providers with advanced proprietary systems .

High energy consumption of ZLD systems, making clients sensitive to lifecycle costs.

Rapid evolution in membrane and evaporation technologies, requiring continuous upgradation.

4. Risks and Concerns

Given the technical complexity of BREPLs operations, the following risks are critical: a) Technical & Performance Risks

Variability inlet effluent characteristics (COD, TDS fluctuations) impacting plant efficiency

Risk of membrane fouling, scaling, and reduced recovery rates

Performance guarantees linked to strict discharge norms and recovery targets b) Execution Risks

Delays in site readiness, utilities availability, and client coordination

Integration challenges in retrofitting existing plants c) Financial Risks

High working capital requirements due to nature of projects

- Delays in receivables from industrial clients d) Compliance Risks

Stringent and evolving norms from Central Pollution Control Board and SPCBs

Non-compliance risks leading to penalties for clients, indirectly impacting reputation e) Operational Risks

Dependence on skilled engineers and technical workforce

Ensuring consistent O&M performance across multiple client sites

5. Outlook

The outlook for BREPLs business remains robust and structurally positive, driven by:

Increasing regulatory enforcement of ZLD and discharge norms Rising industrial focus on water sustainability and ESG compliance Growing awareness of total lifecycle cost vs. initial capex, favouring technically sound solution providers Future growth is expected to be driven by:

Expansion in core sectors (Textiles, Food, Chemicals, Pharma Industries)

Increased share of O&M and recurring revenue models

Adoption of digital and automation-led solutions

Entry into new geographies and industrial clusters

While the long-term outlook remains positive, short-term performance may be influenced by Industrial capex cycles and Energy cost fluctuations.

5. Internal Control Systems and Their Adequacy

BREPL has established a robust internal control framework , aligned with the technical and project-oriented nature of its operations.

B. HUMAN RESOURCES / INDUSTRIAL RELATIONS

The total number of permanent employees in the Company was 458 as on 31 st March, 2026.

The Company has in place Health, Safety and Environment policy for its manufacturing operations. The same is reviewed by the Board from time to time and appropriate actions are taken as directed.

Sr. No. Summary of Training Program (2025-2026)
1 ISO Awareness (ISO 14001& IS0 45001)-EHS
2 GAP Analysis For Good Working Culture
3 8D Problem Solving Technique
4 Motivation & Better Manufacturing
5 Quality policy
6 Safety
7 Fire Fighting
8 First Aid
9 Waste Handling
10 5s
11 Kaizen
12 PPE Usage
13 Lean Manufacturing
14 7qc Tool
15 ISO Awareness (ISO9001(2015)

C. Financial Ratios

Particulars	Standalone		Consolidated
	31.03.2026	31.03.2025	31.03.2026	31.03.2025
Debtors Turnover Ratio	3.64	3.59	4.37	4.41
Inventory Turnover Ratio	13.98	13.03	8.84	8.64
Interest Coverage Ratio	-0.20	2.34	2.28	4.14
Current Ratio	1.28	1.29	1.51	1.51
Debt Equity Ratio	0.42	0.42	0.37	0.39
Operating Profit Margin (%)	-0.36%	4.09%	3.17%	5.80%
Net Profit Margin (%)	-1.74%	1.98%	1.48%	3.27%
Return on Net Worth (%)	-2.67%	3.36%	2.87%	7.28%

Note 1-

Reduction in profit and loss on account of exceptional item during the current year as against profit in previous year has resulted in significant variance of the respective ratio.