Cranex Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS

GLOBAL ECONOMY OVERVIEW

The global economy during FY 2025-26 demonstrated resilience despite heightened geopolitical tensions, trade uncertainties, and evolving supply-chain dynamics. While economic activity remained supported by technological investments, easing financial conditions, and relatively stable labour markets, growth moderated compared to recent years. According to the International Monetary Fund (IMF), global growth is estimated at 3.1% in 2026 and is expected to improve modestly to 3.2% in 2027. However, the pace of expansion remains below historical averages due to persistent geopolitical risks, elevated policy uncertainty, and disruptions in energy markets. Emerging and developing economies continue to be the primary drivers of global growth, supported by stronger domestic demand and ongoing structural investments, while advanced economies are expected to witness relatively subdued growth.

Growth across major developed economies remains moderate. The United States is expected to expand by around 2.3% in 2026, supported by resilient consumption and technology related investments, while growth across Europe remains constrained by weaker industrial activity, elevated energy costs, and subdued consumer spending. At the same time, several emerging economies continue to outperform their developed counterparts, benefiting from demographic advantages, infrastructure investments, and improving domestic demand conditions. India remains one of the fastest growing major economies globally, supported by strong public capital expenditure, expanding manufacturing activity, rising consumption, and continued infrastructure development.

Despite improving economic conditions, risks to the global outlook remain significant. Ongoing geopolitical conflicts, trade policy uncertainties, disruptions to global shipping routes, and volatility in commodity markets continue to pose challenges for businesses and policymakers alike. In addition, climate-related events and the ongoing reconfiguration of global supply chains are influencing investment decisions and production costs across industries. Currency fluctuations, higher energy prices, and evolving trade relationships may further impact economic activity in certain regions.

Overall, while the global economy has remained resilient amid a complex operating environment, the outlook for the coming years remains cautiously optimistic. Continued moderation in inflation, supportive investment trends, technological advancements, and the strong performance of emerging economies provide a foundation for sustainable growth. However, businesses must continue to focus on operational agility, prudent risk management, and long-term value creation to successfully navigate an increasingly dynamic global landscape.

INDIAN ECONOMY OVERVIEW

India continued to reinforce its position as one of the fastest-growing major economies globally during FY 2025- 26, demonstrating remarkable resilience amid a challenging external environment marked by geopolitical tensions, trade disruptions, and global economic uncertainty. Economic growth remained broad-based, supported by strong domestic consumption, sustained government capital expenditure, healthy services sector performance, and a gradual recovery in private investment. Structural reforms, digitalization initiatives, manufacturing incentives, and infrastructure development programs continued to strengthen the countrys long-term growth potential.

The Second Advance Estimates released by the National Statistical Office (NSO) placed Indias real GDP growth at 7.6 per cent in FY 2025-26, owing to strong expansion in private consumption and fixed investment. Robust performance of manufacturing and services sectors were the growth drivers from the supply side. The RBI projects real GDP growth for FY 2026-27 at 6.6 per cent. However, prolonged global supply chain disruptions, heightened volatility in global financial markets, and weather-related shocks continue to pose downside risks to the domestic growth outlook.

Domestic demand remained the primary engine of growth throughout the year. Rising urban incomes, improving employment conditions, resilient rural demand supported by a strong agricultural performance, and continued public investment in infrastructure contributed to robust economic activity. Private consumption expenditure increased its share in GDP, reflecting improving household confidence and a broadening consumption base. Government initiatives focused on infrastructure creation, manufacturing expansion, logistics modernization, and digital transformation continued to support economic momentum and enhance Indias competitiveness in global value chains.

Looking ahead, the outlook for the Indian economy remains highly encouraging. The RBI projects GDP growth in the range of 6.6% for FY 2026-27, while the IMF projects medium-term growth of around 6.5%, making India one of the fastest growing major economies globally. Continued infrastructure investments, improving private sector participation, favourable demographics, strong domestic demand, and ongoing structural reforms are expected to support sustainable long-term growth. While global uncertainties related to trade policies, geopolitical developments, and commodity prices remain key risks, Indias strong macroeconomic fundamentals position it favourably to navigate external challenges and continue its growth trajectory.

Sources: https://prsindia.org/policy/report-summaries/economic-survey-2025-26?utm https://www.imf.org/en/countries/ind?utm https://www.imf.org/external/datamapper/profile/IND?utm https://www.reuters.com/world/india/india-gdp-growth-likely-eased-january-march-quarter-softer-external-demand-2026-06-01/?utm

INDIAN CRANE MARKET

The Indian crane market continued to demonstrate healthy growth during FY2026, supported by strong infrastructure investments, rapid urbanization, industrial expansion, and increasing demand from sectors such as construction, logistics, mining, energy, and manufacturing. According to industry estimates, the Indian crane market was valued at approximately USD 3.6 billion in 2024 and is projected to reach around USD 5.4 billion by 2033, growing at a CAGR of approximately 4.4% during the forecast period. The construction and infrastructure sectors continue to account for an estimated 70- 75% of total crane demand in the country. The governments sustained focus on infrastructure development through investments in roads, railways, metro networks, airports, ports, industrial corridors, renewable energy projects, and urban infrastructure continued to drive demand for a wide range of lifting and material handling equipment across the country.

The renewable energy sector has emerged as a significant demand driver for higher-capacity cranes, particularly for wind energy projects, transmission infrastructure, and utility scale solar installations. Simultaneously, the expansion of logistics parks, warehousing facilities, industrial manufacturing units, and data centres has created new opportunities for material handling and lifting equipment across the country. The increasing adoption of modern construction techniques and large-scale infrastructure projects is expected to further support demand for specialized crane solutions.

Competition within the industry remains intense, with both domestic and international manufacturers focusing on product innovation, localization, customer service capabilities, and financing solutions to strengthen their market positions. While challenges such as commodity price volatility, financing costs, skilled manpower availability, and global supply chain uncertainties continue to persist, the industrys fundamentals remain robust.

Looking ahead, the long-term outlook for the Indian crane market remains highly positive. Continued government focus on infrastructure development, increasing private sector investments, growth in renewable energy installations, industrial expansion, and rising mechanization levels are expected to support sustained demand growth. Furthermore, Indias emergence as a global manufacturing hub and its expanding role in international supply chains are likely to create additional opportunities for crane manufacturers. Supported by favourable economic fundamentals and a strong infrastructure pipeline, the Indian crane market is well positioned for continued growth over the coming years.

Sources: https://www.icema.in?utm https://www.investindia.gov.in/sector/constructionequipment?utm https://morth.nic.in?utm https://gati.shakti.gov.in?utm https://www.investindia.gov.in/team-india-blogs/nationalinfrastructure-pipeline-nip-india?utm https://mnre.gov.in?utm

OPPORTUNITIES

Indias long-term economic growth trajectory, coupled with continued government emphasis on infrastructure creation, manufacturing expansion, logistics modernization, defence indigenization, and agricultural mechanization, provides a strong opportunity landscape for the Company across its core business segments.

The ongoing expansion of metro rail systems, urban transportation networks, and infrastructure development in Tier-2 and Tier-3 cities is creating increasing demand for technologically advanced, compact, and high productivity equipment capable of operating efficiently in urban environments. Rising investments in commercial real estate, industrial parks, data centres, warehousing facilities, and logistics infrastructure further expand the Companys addressable market.

Indias manufacturing sector continues to benefit from the Make in India initiative, Production Linked Incentive (PLI) schemes, and supply chain diversification strategies adopted by global corporations. Growing investments across engineering, automotive, electronics, defence, renewable energy, and industrial manufacturing sectors are expected to drive sustained demand for cranes, forklifts, warehousing equipment, and material handling solutions. The development of industrial corridors and manufacturing clusters further strengthens long-term growth prospects for the Companys industrial equipment portfolio.

Overall, the convergence of infrastructure development, manufacturing growth, defence modernization, logistics expansion and technology adoption provides a diversified and favourable growth environment for the Company. Supported by its strong market position, diversified product portfolio, manufacturing capabilities, distribution network, and brand equity, the Company remains well positioned to capitalize on these opportunities and create sustainable long-term value.

THREATS

The Companys performance remains closely linked to overall economic activity and investment sentiment across infrastructure, manufacturing, logistics, agriculture, and industrial sectors. Any slowdown in domestic economic growth, reduction in infrastructure spending, delays in private capital expenditure, or prolonged global economic uncertainty could adversely impact demand for construction, material handling, and agricultural equipment.

Infrastructure and construction projects remain susceptible to delays arising from land acquisition challenges, regulatory approvals, environmental clearances, funding constraints, contractor execution issues, and labour shortages. Prolonged delays in project implementation may affect equipment demand and lead to deferment of capital expenditure by customers.

The industry is witnessing increasing technological transformation driven by automation, digitalization, telematics, electrification, and connected equipment solutions. Rapid technological changes may require continuous investments in product development, manufacturing capabilities, and research and development activities to remain competitive and meet evolving customer expectations.

· Availability and cost of financing continue to be important factors influencing equipment purchases and project investments. Tight liquidity conditions, rising borrowing costs, stricter lending standards, or reduced availability of project financing may impact customer purchasing decisions and slow equipment demand across manufacturing sectors.

While the Company continues to strengthen its risk management framework and operational resilience, the dynamic nature of the business environment requires continuous monitoring and proactive mitigation of these risks to ensure sustainable long-term growth.

O RISKS AND CONCERN

The Company has established a structured risk management framework for identification, assessment, monitoring and mitigation of risks that may have a material impact on its business operations, financial performance or strategic objectives. The Risk Management Committee, together with the senior management, periodically reviews significant risks based on their likelihood, potential impact and changing business environment and oversees appropriate mitigation measures.

The Companys risk management framework is supported by internal controls, internal audits, management reviews and established policies and procedures. The Company continuously monitors emerging risks and takes appropriate corrective and preventive measures to enhance business resilience and ensure continuity of operations.

Some of the key risks and concerns that require continuous monitoring are set out below:

Supply Chain and Availability of Components: ·Disruptions in the availability of raw materials, components and critical inputs due to supplier issues, logistics constraints, geopolitical developments or other unforeseen events may affect production schedules and customer deliveries.

Mitigation: The Company continues to focus on research and development, product innovation, value engineering and technology upgradation. Customer feedback and market trends are regularly evaluated to improve product design, quality, safety, performance and competitiveness.

Product Quality, Reliability and Warranty: ·Any failure in product quality, reliability or performance may result in warranty claims, customer dissatisfaction, financial impact and reputational risk, particularly considering the safety critical nature of certain construction and lifting equipment.

Mitigation: The Company follows established quality control, testing and inspection processes across product development and manufacturing. Customer feedback, warranty trends and field performance are monitored and corrective and preventive actions are taken wherever required.

Occupational Health and Safety: Manufacturing operations involve heavy machinery, fabrication, material handling, vehicle movement and other industrial activities, which may expose employees and contractors to operational safety risks.

Mitigation: The Company emphasises compliance with applicable safety requirements, employee training, use of appropriate personal protective equipment, safety inspections, preventive maintenance, emergency preparedness and regular review of incidents and near misses.

Human Capital and Skill Availability: ·Availability and retention of skilled personnel across engineering, manufacturing, quality, sales, service, technology and other specialised functions are important for the Companys continued growth.

Mitigation: The Company focuses on recruitment, training, skill development, employee engagement, succession planning and creating a safe, inclusive and performance oriented work environment.

Regulatory and Compliance Risks: ·Changes in laws, regulations, taxation, environmental requirements, product standards, safety norms and other regulatory requirements may increase compliance costs or require changes to products and business processes.

Mitigation: Relevant teams continuously monitor regulatory developments and coordinate implementation of applicable requirements. Internal reviews and audits are undertaken to strengthen compliance and identify potential gaps.

O FINANCIAL PERFORMANCE REVIEW

Financial statements have been prepared in accordance with Ind AS as per the Companies (Indian Accounting Standards) Rules, 2015 as amended and notified Section 133 of the Companies Act, 2013 ("the Act") and other relevant provisions of the Act.

The key highlights of financial performance of standalone business are as under:

Total revenue from operations increased to Rs. 5537.02 Lakhs as against Rs. 5153.76 Lakhs in the previous year a decrease of 7.44% %.

Earnings before Interest, Depreciation, Amortization, Exceptional Items & Tax for the current year is Rs. 354.07 Lakhs against Rs. 285.58 Lakhs in the previous year-an increase of 23.98%. %.

Profit before Tax (PBT) and Profit after Tax (PAT) for the current year are Rs. 323.33 Lakhs and Rs. 241.36 Lakhs respectively against Rs. 251.54 Lakhs and Rs. 194.62 Lakhs in the previous year - increase of 28.54% and 24.02% respectively.

Earnings per share is Rs. 3.67 for the year under review.

O INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company believes that its internal control framework is adequate and commensurate with the nature, size and complexity of its operations. The controls are designed to provide reasonable assurance with regard to the reliability of financial reporting, effectiveness and efficiency of operations, safeguarding of assets, prevention and detection of errors and fraud, and compliance with applicable laws and regulations.

The internal control framework operates through a combination of preventive, detective and monitoring controls, supported by management oversight, internal audit reviews and the oversight of the Audit Committee. The Company remains committed to continuously strengthening its internal control environment in line with its business growth, operational requirements and evolving regulatory and technological landscape.

O MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS

The Company recognises that its people are a key enabler of sustainable business growth and operational excellence. The Human Resources Department ("HRD") is committed to fostering a safe, inclusive, collaborative and positive work environment that encourages employee engagement, mutual respect, teamwork and constructive relationships between employees, workers and management.

The Company believes that employees across all levels play an important role in achieving its strategic and operational objectives. Accordingly, the Company continues to focus on building a resilient, agile, capable and inclusive workforce equipped to respond effectively to changing market conditions, evolving customer expectations and emerging business requirements.

The Company continued to focus on the following key areas of human resource development and employee engagement:

Employee Engagement and Workplace Culture: The Company undertakes various initiatives to create an engaging, collaborative and fulfilling workplace. Employee engagement activities and celebrations, including occasions such as Diwali, New Year and Holi, provide opportunities for employees to interact and strengthen relationships, fostering a sense of belonging and community within the organisation.

Employee Communication and Industrial Relations: The Company believes that open communication and constructive dialogue are essential for maintaining healthy employee and industrial relations.

Employee Enablement and Digitalisation: The Company continues to focus on providing employees with user-friendly tools, digital platforms and an increasingly integrated workplace infrastructure. The objective is to simplify work processes, improve collaboration, enhance access to information and enable employees to work in a more agile and efficient manner.

Health, Safety and Wellbeing: Employee safety and wellbeing remain important priorities for the Company, particularly considering the nature of its manufacturing and engineering operations. The Company continues to promote a safe working environment through appropriate safety practices, awareness, training and adherence to applicable health and safety requirements. The Company also remains focused on employee wellbeing and creating a workplace where employees can perform their responsibilities safely and effectively.

Recognition and Positive Work Environment: The Company endeavours to create an environment that recognises employee contribution, encourages teamwork and supports a culture of accountability, performance and continuous improvement. The objective is to enable employees to contribute meaningfully to the Companys growth while maintaining a positive and respectful workplace.

The Number of permanent employees on the rolls of the Company as on March 31, 2026 is 125.

O DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS:

The Company has identified the key financial ratio as described in note no. 31 of the standalone financial statement that is the part of Annual Report.

O RISK MANAGEMENT AND GOVERNANCE

Risk is an inherent part of conducting business and the Company recognises that effective risk management is essential for protecting stakeholder interests, maintaining business continuity and achieving sustainable growth. The Company follows a structured and proactive approach to identify, assess, monitor and mitigate risks. Risks are evaluated based on their likelihood and potential impact and are considered across long-term strategic, short- and medium-term operational and event-specific horizons.

The Risk Management Committee, senior management and relevant functional teams oversee the identification and management of significant risks. Business and functional teams are responsible for managing risks within their respective areas and implementing appropriate mitigation measures.

The Company believes that strong corporate governance and an effective internal control environment are integral to sound risk management. Internal financial controls, internal audits, management reviews and Audit Committee oversight support the Companys risk management framework.

The Company seeks to manage risks through appropriate measures including risk avoidance, reduction, mitigation, retention and sharing, depending upon the nature and materiality of the risk. The Company remains committed to strengthening its risk management and governance framework in line with its evolving business, regulatory and operating environment.

O DISCLAIMER

Certain statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be "forward looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ from those expressed or implied. Important factors that could make a difference to the Companys operations include raw material availability and prices, cyclical demand and pricing in the Companys principal markets, changes in Government regulations, tax regimes, economic developments within India and the countries in which the Company conducts business and other incidental factors.

	By Order of the Board of Directors
	For Cranex Limited
Sd/-	Sd/-
Chaitanya Agrawal	Piyush Agrawal
Whole Time Director	Managing Director
DIN: 05108809	DIN: 01761004
Place: New Delhi
Date: 2 September, 2026