Belding India Ltd Management Discussions

ECONOMIC OVERVIEW

Global Economy

The global economy remained resilient in 2025 despite rising geopolitical tensions, particularly ongoing conflicts in West Asia, which caused supply chain disruptions, higher energy prices, rising shipping costs, and uncertainty in global trade. Additional pressure came from rising tariffs, trade policy concerns, and fiscal consolidation across major economies. However, global growth was 3.4% in 2025, compared with 3.1% in 2026 supported by AIled investments, fiscal support, and accommodative financial conditions. Advanced economies grew by 1.9% in 2025, reinforced by relatively stable labor markets, accommodative financial scenarios and recovering demand. Similarly, Emerging Markets and Developing Economies (EMDEs) expanded by 4.4% in 2025, owing to improving manufacturing and services activity, infrastructure investment and domestic consumption.

The U.S. economy grew by 2.1% in 2025, the Eurozone by 1.4%, and China by 5.0%, supported by exports and policy measures. Global inflation eased to 4.1% in 2025, although inflation remains elevated in the U.S. For Belding India Limited (Formerly known as Synthiko Foils Limited), rising global investments in energy storage, data centers, defense, and precision engineering create strong growth opportunities, while volatility in raw material prices, freight costs, and supply chains may continue to impact execution and margins.

However, inflationary trends remained uneven across regions, with inflation continuing to exceed target levels in the United States while remaining relatively subdued in several other major economies.

[Source: IMF World Economic Outlook April 2026]Outlook

The global economy is projected to grow by 3.1% in 2026 and 3.2% in 2027, supported by stable demand, AI-led investments, and improving trade opportunities despite continued risks from geopolitical tensions, trade uncertainty, and elevated debt levels. The U.S. is expected to remain a key growth driver with GDP growth of 2.3% in 2026 and 2.1% in 2027, while the Eurozone is projected to grow at 1.1% in 2026 and

1.2% in 2027 through public spending, infrastructure investment, and energy transition initiatives.

[Source: IMF World Economic Outlook April 2026]

INDIAN ECONOMY Overview

India remained one of the fastest-growing major economies in FY26, supported by resilient consumer spending, strong public investment, and policy-led growth. Despite higher US tariffs and geopolitical tensions in West Asia affecting crude oil prices, trade routes, and external demand, Indias diversified trade base and strong domestic demand helped sustain economic stability. According to the Provisional Estimates released by the Ministry of Statistics and Programme Implementation (MoSPI), real GDP grew by 7.7% in FY26, while real Gross Value Added (GVA) increased by 7.9% to S294.91 lakh crore, supported by robust performance across manufacturing, services and construction sectors.

India continues to remain among the worlds largest economies and is currently ranked as the sixth- largest economy globally in nominal GDP terms, as per the IMF. Structural reforms such as the Goods and Services Tax (GST), Production Linked Incentive (PLI) schemes and Make in India 2.0 continue to enhance formalization, improve manufacturing competitiveness and strengthen ease of doing business, while reinforcing Indias integration within global supply chains. Manufacturing activity also remained robust, with the HSBC India Manufacturing PMI rising to 55.0 in May 2026, supported by growth in domestic orders, output and purchasing activity.

Indias Index of Industrial Production (IIP) recorded a growth of 4.9% in April 2026, led by a 6.2% expansion in manufacturing. Continued government investments in transportation, logistics, energy and digital infrastructure further supported economic growth.

Inflation moderated significantly during the year, with CPI inflation easing to 2.1% in FY26, supported by favorable supply conditions and easing food prices. In response, the Reserve Bank of India (RBI) cumulatively reduced the policy repo rate to 5.25%, supporting credit availability and investment activity. (Source: Tradingeconomics, PIB, RBI Annual Report 2025-2026)

OUTLOOK

India is expected to remain one of the fastest- growing major economies, supported by strong domestic demand, rising investments and continued infrastructure development. Rapid urbanization, industrialization and electrification are expected to drive sustained growth in power demand, creating significant opportunities for the energy sector. Additionally, Indias exports are expected to approach US$ 1 trillion in FY27, supported by expanding manufacturing capabilities, improving competitiveness and ongoing trade agreements.

The Governments focus on manufacturing, infrastructure and energy security continues to strengthen the investment environment. Initiatives such as Make in India 2.0 and the Production Linked Incentive (PLI) Scheme are enhancing domestic manufacturing capabilities and supporting demand for reliable and sustainable energy infrastructure.

Although geopolitical tensions in West Asia may create risks through volatile crude oil prices and trade route disruptions, Indias strong fundamentals and infrastructure-led growth are expected to contain the impact.

The Union Budget FY27 raised capital expenditure to a record WI2.2 lakh crore, with a focus on roads, railways, ports, airports, power, and urban infrastructure. Indias exports are expected to reach US$ 1 trillion in FY27, supported by trade agreements and tariff reductions. These developments create strong growth opportunities for Belding India Limited across BESS, data centers, defense, and precision engineering. [Source:, Careratings, PIB)

INDUSTRY OVERVIEW

Renewable Energy Global Market

The global renewable energy industry continued strong growth in 2026, supported by rising energy demand, decarbonization targets, and investments in clean power infrastructure. Global renewable power capacity reached 5,149 GW by the end of 2025, with a record 692 GW added during the year, reflecting 15.5% annual growth. Renewables accounted for 85.6% of total global power capacity additions, with solar contributing 511 GW, nearly 75% of all new renewable installations, and wind adding 159 GW. Renewable sources now represent nearly 50% of the worlds total installed power capacity, with Asia, led by China and India, remaining the key growth driver. The IEA projects that global renewable electricity capacity will increase by nearly 4,600 GW during 2025-2030.

The global BESS industry also witnessed strong growth in 2025, driven by renewable energy expansion, grid flexibility, and reliable power demand. Around 108 GW of new battery storage capacity was added, nearly 40% higher than in 2024, taking installed capacity to eleven times 2021 levels. Lithium iron phosphate (LFP) batteries accounted for nearly 90% of deployments due to lower cost and safety. The global lithium-ion battery market exceeded US$ 150 billion, while energy storage capacity is expected to grow sixfold to 1,500 GW by 2030.

(Source: Rechargenews, IEA, IRENA,, IEA, IRENA)

Indian Market

Indias renewable energy sector continued strong growth in 2025, supported by policy reforms, rising investments, and decarbonization targets. During FY26, India added 54,591.78 MW of renewable energy capacity and 55,291.78 MW of total non-fossil fuel capacity, achieving its target of 50% installed electricity capacity from non-fossil sources five years ahead of schedule. India now ranks as the worlds third-largest renewable energy market and targets 500 GW of renewable energy capacity, including hydro, by 2030, with focus on solar manufacturing, grid expansion, green hydrogen, and battery storage.

Indias BESS industry is also entering a strong growth phase. Energy storage requirement for FY27 is projected at 82.37 GWh, including 34.72 GWh from BESS and 47.65 GWh from pumped storage. Around 35.8 GWh is under construction, while annual battery

storage installations are expected to rise from 507 MWh in 2025 to nearly 5 GWh in 2026, reaching 346 GWh by 2033.

(Source: Investindia, PIB, MNRE)

DIGITAL INFRASTRUCTURE & DATA CENTERS (EPC)

Global

The global data center industry is expanding rapidly, driven by AI, cloud computing, hyperscale infrastructure, and enterprise digital transformation. Capacity is expected to nearly double from 103 GW to 200 GW by 2030, creating one of the worlds largest infrastructure investment cycles with a nearly US$ 3 trillion investment supercycle. AI workloads are expected to account for almost 50% of total data center capacity by 2030, increasing demand for high- density computing, advanced cooling, and power infrastructure. The global AI data center market, valued at US$ 147.3 billion in 2025, is projected to reach US$ 810.61 billion by 2033, growing at a CAGR of 23.9%. The modular data center market is also expected to grow from US$ 33.3 billion in 2025 to US$ 102.12 billion by 2032. The rollout of 5G and edge computing is accelerating demand for containerized micro data centers, while power availability, renewable energy access, and efficient cooling remain key priorities. (Sources: JLL, Globenewswire, Grandviewresearch)

Indian

Indias data center industry is witnessing strong growth, driven by cloud adoption, digital transformation, data localization, and 5G rollout. Data centers have become critical infrastructure supporting fintech, e-commerce, telecom, OTT platforms, and government digital services. As a result, the Indian data center market was valued at around US$ 8.94 billion in 2025 and is expected to reach over US$ 31.36 billion by 2035, reflecting longterm expansion.

Data localization regulations and the Digital Personal Data Protection framework are encouraging enterprises to store and process data within the country, increasing investments in domestic data centers and sovereign cloud infrastructure. This has attracted global hyperscale cloud operators and colocation providers due to strong digital demand, lower operating costs, and rising enterprise dependence on cloud services. The nationwide 5G rollout is also accelerating demand for edge computing and distributed micro data centers. In response, modular and containerized data centers

are gaining strong acceptance as they offer faster deployment, scalability, and lower construction risks, making them suitable for telecom, BFSI, and industrial clients.

The Union Budget FY27 announced a tax holiday till 2047 for eligible foreign cloud service providers using India-based data centers for global operations. India Semiconductor Mission 2.0 was launched with S1,000 crore allocation, while the Electronics Components Manufacturing Scheme (ECMS) allocation increased from ^22,000 crore to ^40,000 crore. Along with the proposed National Data Center Policy and infrastructure incentives, these measures aim to position India as a global hub for cloud, AI, and data center investments. With increased requirements for turnkey EPC solutions, this provides opportunities for Belding India Limited in modular data center deployment and digital infrastructure execution. (Source: Globenewswire, PIB, Strategic Engineering and Infrastructure)

Strategic Engineering & Infrastructure covers high- precision manufacturing, system integration, and mission-critical infrastructure across Defense, Aviation, Telecom, Data Centers, and FoodTech. It reflects the industrys shift from conventional fabrication to engineering-led infrastructure, where precision, reliability, and operational continuity are essential.

Global

The global Aerospace and Defense market is valued at approximately US$ 846.94 billion in 2025 and is projected to reach US$ 1185.07 billion in 2030, driven by defense modernization and rising geopolitical tensions. Precision engineering is increasingly integrated with AI, IoT, and advanced automation, creating demand for high-accuracy systems, industrial enclosures, control consoles, and safety- critical infrastructure. The global precision engineering machines market is experiencing robust growth, projected to reach approximately US$ 22.05 billion by 2030, growing at 6.8% CAGR. This expansion is driven by surging demand for high-accuracy components in aerospace, automotive (especially EVs), medical devices, and electronics, alongside increased adoption of Industry 4.0 automation and Computer Numerical Control (CNC) technologies. Aviation infrastructure is also undergoing modernization, with airports globally adopting automated passenger processing systems, self-service kiosks, and digitally integrated terminal infrastructure. The rise of

sovereign cloud infrastructure, modular data centers, and edge computing is further increasing demand for secure engineering-led infrastructure and high- density telecom systems.

(Source: The business research company, Grand view research) Indian

Indias defense manufacturing industry continues to strengthen under Atmanirbhar Bharat and Make in India, with defense exports reaching an all-time high of S384.24 billion (US$ 4.11 billion) in FY26, up over 62% from FY25, reflecting strong indigenous manufacturing and global demand for Indian strategic systems. Indias precision manufacturing industry is projected to reach US$ 16.6 billion by 2033, growing at a CAGR of 12.4%, driven by Make in India initiatives, 5-axis CNC technology, and SMEs serving sectors such as automotive, aerospace, and defense. The nationwide 5G rollout is increasing demand for telecom shelters, IT racks, industrial enclosures, and precision system integration solutions. Simultaneously, airport modernization and rising passenger traffic are boosting demand for self-service kiosks and automated terminal systems. PLI schemes across electronics, telecom, and engineering, along with growth in FoodTech and industrial automation, continue to strengthen this high-growth sector.

(Source: Grandviewresearch, Reuters)

Outlook

The outlook remains strong across renewable energy, BESS, data centers, and strategic engineering. Renewable capacity expansion and battery storage adoption are expected to accelerate further as global and domestic decarbonization targets tighten. Indias data center and EPC market is likely to benefit from AI infrastructure, tax incentives, and rising enterprise digitalization. Strategic engineering is expected to see sustained growth through defense manufacturing, telecom infrastructure, and precision-led industrial expansion, creating significant opportunities for integrated engineering players like Belding India Limited.

COMPANY OVERVIEW

The Company is an engineering-led infrastructure company engaged in providing solutions across data center infrastructure, battery energy storage systems (BESS), defense and strategic infrastructure, and precision fabrication. The Company delivers a combination of products, engineering services, system integration, manufacturing, and turnkey project execution to support mission-critical infrastructure requirements across industrial, energy, digital, and government sectors.

Strategic Transformation Journey

Belding India Limited has strategically evolved into an engineering-led infrastructure company focused on

high-growth sectors. The Companys transformation is driven by emerging opportunities across energy storage, digital infrastructure, strategic engineering, precision manufacturing, and defense. Reflecting its expanded business focus and long-term growth strategy, the Company was renamed Belding India Limited in February 2026, following approval from the Ministry of Corporate Affairs.

Now, the Companys operations are organised through four business verticals. DC&T Global focuses on modular data centers, electrical infrastructure, EPC services, structured cabling, and turnkey deployment of digital infrastructure projects. The BESS vertical provides battery energy storage solutions, including containerized energy storage systems, battery management systems, renewable energy integration, and grid-support solutions. Through Metafin Technology, the Company undertakes precision fabrication and manufacturing of engineered products such as industrial containers, electrical panels, cable trays, racks, kiosks, and custom-built assemblies catering to sectors including data centers, aviation, energy, and defense. DC&T Defense is engaged in the design, engineering, and deployment of tactical edge data centers, ruggedised systems, command-and-control infrastructure, military containers, ballistic protection solutions, and other strategic defense applications.

Supported by an integrated manufacturing facility and in-house engineering capabilities, the Company offers end-to-end solutions ranging from design and fabrication to installation, testing, commissioning, and lifecycle support. With its presence across

high-growth sectors driven by digitalization, energy transition, infrastructure development, and defense indigenization, Belding India is strategically positioned to participate in Indias evolving infrastructure landscape while creating long-term value through technology-driven and engineeringintensive solutions.

Products/services

The Company provides integrated engineering, manufacturing, and infrastructure solutions across the digital infrastructure, energy storage, precision fabrication, and defense sectors. The Company combines in-house design capabilities, manufacturing expertise, systems integration, and turnkey project execution to deliver mission-critical infrastructure solutions for industrial, commercial, government, and institutional customers.

Digital Infrastructure and Data Center Solutions

The Company designs, manufactures, and deploys modular data centers, containerized infrastructure solutions, electrical systems, structured cabling networks, and associated EPC services. Belding Indias offerings support hyperscale, enterprise, edge computing, and mission-critical applications, enabling rapid deployment, scalability, and efficient infrastructure management.

Battery Energy Storage Systems (BESS)

The Company offers advanced battery energy storage solutions designed to enhance energy reliability, renewable energy integration, and grid stability. Belding Indias solutions include containerized BESS platforms, energy management systems, battery monitoring and protection systems, and integrated storage solutions for industrial facilities, utilities, renewable energy projects, and critical infrastructure applications.

Precision Engineering and Manufacturing Solutions

Through its manufacturing and fabrication capabilities, the Company produces a wide range of engineered products, including electrical panels, cable management systems, industrial enclosures, racks, containers, kiosks, cooling infrastructure, fire-rated and specialized access systems, and customized fabricated assemblies. These solutions cater to diverse sectors such as data centers, aviation, telecommunications, energy, defense, and industrial infrastructure.

Defense and Strategic Infrastructure Solutions

The Company develops and delivers specialized engineering solutions for defense and strategic applications, including tactical edge data centers, ruggedised infrastructure, military-grade containers, command-and-control systems, ballistic protection solutions, and mission-critical support infrastructure. These capabilities align with Indias defense indigenization initiatives and the growing demand for locally engineered strategic systems.

By integrating engineering, manufacturing, system integration, installation, testing, commissioning, and lifecycle support under a single platform, the Company provides end-to-end solutions that enhance execution, quality control, and operational reliability. This addresses the evolving infrastructure requirements of a rapidly transforming economy.

Growth drivers

Manufacturing Infrastructure & Capacity Expansion

During FY26, the Company strengthened its manufacturing capabilities through the establishment of a 2,00,000 sq. ft. facility at Khed, Pune. The facility serves as a key manufacturing and system integration hub supporting the Companys operations across Battery Energy Storage Systems (BESS), modular data centers, strategic engineering, precision fabrication, and defense infrastructure.

The facility enhances the Companys ability to undertake in-house manufacturing, fabrication, assembly, testing, and system integration activities. It also provides the operational capacity required to support large-scale project execution across its core business verticals.

The investment strengthens manufacturing selfreliance, improves quality control, reduces execution dependencies, and enhances scalability. The facility is expected to play an important role in supporting future growth opportunities and expanding the Companys infrastructure platform.

New markets

The Company has expanded into new and high- growth markets such as Battery Energy Storage Systems (BESS), modular data centers, defense engineering, aviation infrastructure, telecom solutions. These markets are supported by investments in renewable energy, digital infrastructure, 5G rollout, airport modernization, and defense indigenization under Make in India.

Innovation

Innovation remains a key driver through modular, containerized, and scalable solutions across energy storage and edge data centers. Its focus on precision engineering, advanced cooling systems, safety infrastructure, and turnkey project execution strengthens its presence across mission-critical industries and supports long-term business growth.

FINANCIAL AND OPERATIONAL PERFORMANCE REVIEW

Note on Consolidated Financial Ratios

Belding India Limited ("the Company") has, for the first time, prepared Consolidated Financial Statements for the Financial Year 2025-26, pursuant to the Company having acquired subsidiary company(ies) during the year under review. Consequently, the Company was not required to prepare Consolidated Financial Statements in the preceding financial year(s), as it did not have any subsidiary, associate or joint venture during those periods.

In view of the above, the key financial ratios computed on a consolidated basis for FY26, as required under Schedule V, Part B, Clause 1 (i) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, are being disclosed for the first time and hence do not have a comparative previous year figure. Accordingly, no explanation for variance (as otherwise required where the change in a ratio exceeds 25% as compared to the preceding year) has been provided, since a meaningful comparison with prior year consolidated ratios is not possible/ applicable for the reasons stated above.

Regulatory Compliance and Safety Standards

The Company operates across sectors that require adherence to stringent regulatory, safety, and quality standards. Regulatory compliance and operational safety remain integral to its business processes and project execution.

In the Battery Energy Storage Systems (BESS) business, the Company focuses on battery safety, system reliability, fire protection measures, and compliance with applicable technical and operational standards. Safety considerations are integrated across design, installation, testing, and monitoring activities.

In the defense and strategic infrastructure segment, the Company follows applicable regulatory requirements, technical specifications, and project protocols associated with defense-related projects and strategic applications.

Across its manufacturing operations, the Company maintains quality control processes, workplace safety practices, and operational procedures designed to support efficient production. The Company also focuses on compliance with applicable environmental, health, and safety requirements.

Through continuous monitoring, process controls, and adherence to established standards, the Company seeks to maintain operational reliability, product quality, and responsible business practices across its key business verticals.

OPPORTUNITIES & THREATS

Opportunities

Indias digital transformation, energy transition, infrastructure development, and defense modernization programs are creating significant opportunities for the Company across its core business segments.

The increasing adoption of cloud computing, artificial intelligence, and 5G technologies is driving strong demand for data center infrastructure. Investments in hyperscale and edge data centers continue to rise across the country. This creates opportunities for the Companys modular data center solutions, electrical infrastructure, and EPC services.

The growing share of renewable energy in Indias power mix is accelerating the need for energy storage solutions. Battery Energy Storage Systems (BESS) are becoming critical for improving grid stability, enhancing energy reliability, and supporting renewable energy integration. This is expected to create long-term opportunities for the Companys energy storage business.

Government-led infrastructure development and industrial expansion are driving demand for engineering and fabrication solutions. Increasing investments across the data center, energy, aviation, telecommunications, and industrial sectors are expected to support demand for the Companys precision-engineered products and manufacturing capabilities.

Indias focus on defense indigenization under the Atmanirbhar Bharat initiative is creating opportunities for domestic manufacturers of strategic infrastructure and defense systems. Growing requirements for tactical computing, edge data centers, ruggedized infrastructure, and mission-critical solutions are expected to support the growth of the Companys defense business.

With capabilities spanning engineering, manufacturing, system integration, and turnkey project execution, the Company is well-positioned to capitalise on these emerging opportunities and participate in Indias long-term infrastructure and technology growth story.

Threats

The Companys businesses operate in highly competitive and technology-driven markets. Increasing participation by domestic and global players in the data center, energy storage, engineering, and defense sectors may intensify competition and exert pressure on pricing, margins, and market share.

The data center and digital infrastructure industry requires continuous investment in technology, engineering capabilities, and execution excellence. Rapid technological advancements and evolving customer requirements may require ongoing investments in product development, system upgrades, and specialized talent.

The Battery Energy Storage Systems (BESS) business is exposed to fluctuations in battery cell prices, supply chain disruptions, and the availability of critical raw materials. Changes in government policies, regulatory frameworks, or incentive structures relating to renewable energy and energy storage may also impact project economics and industry growth.

The Companys engineering and manufacturing operations may be affected by volatility in raw material prices, including steel, metals, and electrical components. Any significant increase in input costs or supply constraints could impact project timelines and profitability.

The defense and strategic infrastructure business is dependent on government spending, procurement cycles, regulatory approvals, and project execution timelines. Delays in approvals, order finalization, or policy changes could affect business growth and revenue visibility.

In addition, macroeconomic uncertainties, geopolitical developments, foreign exchange fluctuations, and disruptions in global supply chains may influence project execution, procurement costs, and overall business performance. The Company continues to focus on technology development, operational efficiency, diversification, and prudent risk management to mitigate these challenges.

DISCLOSURE ON ACCOUNTING TREATMENT

The financial statements of the Company for the financial year ended March 31, 2026, have been prepared in accordance with the Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013, read with the Companies (Indian Accounting Standards) Rules, 2015 and other generally accepted accounting principles in India.

The Company has consistently followed the applicable accounting policies in preparation of the financial statements. The accounting treatments adopted conform to the applicable Indian Accounting Standards, and there have been no material departures from the prescribed accounting standards during the year. Further, the Statutory Auditors have confirmed that the standalone financial statements comply with the Ind AS specified under Section 133 of the Companies Act, 2013.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Belding India Limiteds internal control systems are commensurate with the nature of its business and the size and complexity of its operations. Significant audit observations and follow-up actions thereon are reported to the Audit Committee. The Company views Internal Control as a tool for improving operational performance and ensuring the reliability of the reporting mechanism. The Company is equipped with adequate internal control systems for

its business operations, which support the efficiency of its financial reporting and ensure compliance with applicable laws and regulations.

HUMAN RESOURCES

Belding India Limited recognizes people as the primary source of its competitiveness and continues to focus on people development by leveraging technology and developing a continuously learning human resource base to unleash their potential and fulfil their aspirations. It believes in creating a favorable work environment, which can lead to innovative ideas. The Company has an optimum process of recruitment and awarding its human resources, which leads to attraction and retention of highly qualified and productive individuals in the organization. As of March 31, 2026, the Company had a total of 23 employees.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis describing the Companys objectives, projections, expectations and estimates regarding future performance may be "forward-looking statements" within the meaning of applicable securities laws and regulations and are based on currently available information. The management believes these to be true to the best of its knowledge at the time of preparation of this report. However, these statements are subject to future events and uncertainties, which could cause actual results to differ materially from those that may be indicated by such statements.