1. INDUSTRY STRUCTURE AND DEVELOPMENTS

The Indian renewable energy sector, particularly the solar energy industry, continues to witness significant growth driven by increasing energy requirements, greater emphasis on clean and sustainable sources of power, technological developments and supportive government policies.

Solar energy has emerged as an important component of India s renewable energy landscape. The sector encompasses solar photovoltaic modules and related products, engineering and installation activities, solar power generation and various ancillary products and services. Increasing awareness regarding environmental sustainability, reduction in the cost of solar power generation, technological advancement and growing adoption of renewable energy by industrial, commercial and residential consumers are expected to continue supporting the development of the solar industry.

During the year, the Company s business profile underwent a significant transformation pursuant to the Scheme of Amalgamation of Solar Citizen Private Limited with Citizen Solar Limited (formerly known as Citizen Infoline Limited).

The Honble National Company Law Tribunal, Ahmedabad Bench, vide its Order dated March 19, 2026 , sanctioned the Scheme of Amalgamation under Sections 230 to 232 of the Companies Act, 2013, with an Appointed Date of April 1, 2023 . Consequent to the Scheme and the Company s strategic transition towards the renewable energy sector, the Company s operations are now substantially focused on the solar energy business.

2. BUSINESS OVERVIEW

The Company operates in the renewable energy sector with a focus on the solar business and allied activities.

The Company s strategy is focused on developing and strengthening its presence in the solar sector, improving operating efficiencies, expanding business opportunities and creating sustainable long-term value for its shareholders and other stakeholders.

The amalgamation has enabled consolidation of business operations, assets, resources, expertise and financial strength under a single corporate structure and is expected to provide greater operational and administrative efficiencies.

3. OPPORTUNITIES AND OUTLOOK

The renewable energy and solar sectors present significant long-term opportunities. The principal opportunities for the Company include:

1. increasing adoption of solar energy across industrial, commercial and residential segments;

2. increasing demand for renewable and sustainable sources of energy;

3. opportunities arising from Indias transition towards cleaner sources of power;

4. expansion of solar infrastructure and related products and services;

5. technological improvements resulting in better efficiency and competitiveness of solar products;

6. opportunities for expansion into related segments of the renewable energy value chain; and

7. potential economies of scale and operational synergies following the amalgamation.

The Company intends to pursue growth opportunities in a disciplined manner while maintaining appropriate focus on profitability, working capital management, quality and risk management.

The Board remains positive about the long-term prospects of the renewable energy industry and will continue to evaluate opportunities that are commercially viable and consistent with the Company s business strategy.

4. RISKS AND THREATS

While the long-term prospects of the solar industry remain encouraging, the business is exposed to various risks and uncertainties, including:

? changes in government policies, regulations, duties and incentives applicable to the renewable energy sector;

? volatility in prices and availability of solar modules, cells, components and other raw materials;

? dependence on suppliers and supply-chain conditions;

? technological changes and the risk of technological obsolescence;

? intense competition and pricing pressure;

? fluctuations in interest rates and finance costs;

? working capital requirements associated with expansion of operations;

? foreign exchange fluctuations, where applicable;

? changes in demand and market conditions;

? credit risk associated with customers and counterparties; and

? general economic, geopolitical and regulatory developments.

The Company continuously evaluates the risks associated with its operations and seeks to adopt appropriate measures for mitigating such risks.

5. FINANCIAL AND OPERATIONAL PERFORMANCE

The Company s financial performance during FY 2025-26 reflects the expansion of its operations and the effect of the amalgamation.

As disclosed in the Directors Report, the Company recorded substantial growth during the year. The Company s profitability also improved, with the Net Profit Ratio increasing to 7.22% during FY 2025-26 from 6.27% during FY 2024-25.

The Return on Equity stood at 67.09% compared with 63.50% in the previous financial year.

The financial performance of the Company should be read together with the Audited Financial Statements and notes forming part thereof.

6. DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS

The key financial ratios of the Company for FY 2025-26 compared with FY 2024-25 are as follows:

Particulars	FY 2025-26	FY 2024-25	Variance	Reason for Variance
Current Ratio	0.86	1.52	(43.82%)	On account of increase in current liabilities during the current year.
Debt-Equity Ratio	2.53	0.77	229.34%	On account of increase in borrowings during the current year.
Debt Service Coverage Ratio	15.00	7.84	91.20%	On account of increase in earnings during the current year.
Return on Equity Ratio	67.09%	63.50%	5.67%	No significant change requiring separate explanation.
Inventory Turnover Ratio	30.83	20.37	51.40%	On account of increase in sales during the current year.
Trade Receivables Turnover Ratio	36.10	45.19	(20.13%)	On account of increase in trade receivables during the current year.
Trade Payables Turnover Ratio	553.95	339.92	62.96%	On account of increase in purchases during the current year.
Net Profit Ratio	7.22%	6.27%	15.15%	No significant change requiring separate explanation.
Return on Capital Employed	21.88%	42.85%	(48.94%)	Primarily attributable to the change/increase in capital employed during the current year.

Ratio Formulae

Ratio	Numerator	Denominator
Current Ratio	Current Assets	Current Liabilities
Debt-Equity Ratio	Total Debt	Total Equity
Debt Service Coverage Ratio	Earnings available for debt service	Interest expense + principal repayments of long-term loans
Return on Equity Ratio	Net Profit after Tax	Average Net Worth
Inventory Turnover Ratio	Net Sales	Average Inventory
Trade Receivables Turnover Ratio	Net Credit Sales	Average Trade Receivables
Trade Payables Turnover Ratio	Net Credit Purchases	Average Trade Payables
Net Profit Ratio	Net Profit	Net Sales
Return on Capital Employed	Earnings before Interest and Tax	Capital Employed

Note: Explanations have been provided for ratios where the change exceeds 25% as compared with the immediately preceding financial year.

7. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has established internal control systems commensurate with the size, scale and complexity of its operations.

The internal control framework is designed to provide reasonable assurance regarding the effectiveness and efficiency of operations, safeguarding of assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records, timely preparation of reliable financial information and compliance with applicable laws and regulations.

The Audit Committee periodically reviews the adequacy and effectiveness of the Company s internal control systems and monitors the implementation of recommendations arising from internal and statutory audits.

The Company continues to review and strengthen its internal controls in line with changes in the scale and nature of its solar business operations.

8. HUMAN RESOURCES AND INDUSTRIAL RELATIONS

Human resources continue to be an important element in the Company s growth and development.

The Company seeks to create a professional working environment based on performance, accountability, transparency, teamwork and continuous development.

Training and development initiatives are undertaken from time to time with a view to enhancing the technical, operational and managerial capabilities of employees.

Industrial and employee relations remained cordial during the year under review.

The Company had 66 active employees/members covered under the gratuity valuation as at March 31, 2026.

9. OUTLOOK AND BUSINESS STRATEGY

The Company s future strategy is centred around strengthening and expanding its presence in the renewable energy and solar sector.

The Company s key strategic priorities include:

1. strengthening its solar business operations;

2. expanding its customer and market base;

3. improving operational efficiencies and capacity utilisation;

4. maintaining product and service quality;

5. strengthening supply-chain and vendor relationships;

6. exercising disciplined working capital and financial management;

7. adopting appropriate technological developments relevant to the solar industry; and

8. exploring commercially viable opportunities in renewable energy and allied businesses.

The Company will continue to pursue opportunities that are consistent with its resources, capabilities and long-term business objectives.

10. CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis describing the Company s objectives, projections, estimates, expectations, strategies or predictions may constitute forward-looking statements within the meaning of applicable securities laws and regulations.

Actual results may differ materially from those expressed or implied due to various factors including economic conditions, market demand, availability and cost of raw materials, competition, technological developments, government policies and regulations, interest rates, foreign exchange fluctuations, supply-chain conditions and other factors affecting the Company s operations.

The Company assumes no obligation to publicly amend, modify or revise any forward-looking statement on the basis of subsequent developments, information or events, except as may be required under applicable law.

For and on behalf of the Board of Directors
CITIZEN SOLAR LIMITED
(Formerly known as Citizen Infoline Limited)
Omprakash L Jain	Tansukhraj L Jain
Managing Director	Whole Time Director
DIN: 00171365	DIN: 00171418
Place: Ahmedabad
Date: August 13, 2026