Divine Power Energy Ltd Management Discussions

“ANNEXURE-IV”

In compliance of Regulation 34(3) and 54(f) read with Schedule V of Securities Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations, 2015, please find Management Discussion and Analysis Report forming part of Annual Report.

1. Overview of the Business

Our Company was incorporated on August 24, 2001, as ‘PDRV Enterprises Private Limited, a private limited company under the Companies Act, 1956, pursuant to a certificate of incorporation issued by the Registrar of Companies, NCT of Delhi & Haryana. Our Companys name was changed from ‘PDRV Enterprises Private Limited to ‘Dee Power and Electricals Private Limited pursuant to the Resolution passed by the Shareholders in an ExtraOrdinary General Meeting held on January 05, 2023 and a fresh Certificate of Incorporation dated May 11, 2023 was issued to this effect by Registrar of Companies, NCT of Delhi & Haryana. Further, our Companys name was changed from ‘Dee Power and Electricals Private Limited to ‘Divine Power Energy Private Limited pursuant to the Resolution passed by the Shareholders in an Extra-Ordinary General Meeting held on June 10, 2023 and a fresh Certificate of Incorporation dated July 11, 2023 was issued to this effect by Registrar of Companies, NCT of Delhi & Haryana. Subsequently, pursuant to a resolution passed by the Shareholders in an Extra-Ordinary General Meeting held on July 17, 2023, our Company was converted from a private limited company to a public limited company and a fresh certificate of incorporated dated August 03, 2023 was issued by the Registrar of Companies, Delhi. Consequent to the conversion of our Company, the name of our Company was changed to ‘Divine Power Energy Limited. The Corporate Identity Number of our Company is U31300DL2001PLC112176.

In furtherance of our growth and expansion plans, our Company undertook an Initial Public Offering (IPO) of its equity shares and was successfully listed on the “National Stock Exchange of India Limited” (“NSE”) SME on 02nd July,, 2024. The listing marked a significant milestone in the Companys journey, enabling us to access capital markets, enhance visibility, and strengthen our financial position to support future business objectives.

In Pursuant to the Initial Public Offering (“IPO”) of 56.9 lakh Equity Shares having a face value of ?10/- each at a price of ? 40 per Equity Share, the upper end of the price band. The Equity Shares of our Company are listed and admitted to dealings on the NSE SME Platform, specify as applicable under the Symbol “DPEL”

Divine Power Energy Limited likely focuses on integrating sustainable energy solutions with advanced technology, driving operational excellence, expanding market presence, and maintaining financial health, all while prioritizing customer satisfaction and community engagement.

2. Opportunities and Threats

Divine Power Energy Limited” operates in a dynamic and evolving power and electrical equipment industry. With the rising demand for reliable and efficient energy transmission solutions, the Company is well-positioned to leverage upcoming opportunities while addressing industry challenges effectively.

We offer a diversified range of products.

> Existing well-established reputation and customer relationships

> Quality Assurance

> Stable financial performance with improved margins

> Experienced management team with industry expertise and successful track record

3. Competition:

We face competition from organized and unorganized players in the industry which have a presence across multiple regions in India. There are various companies offering products similar to us. We believe the principal elements of competition in our industry are price, durability, product quality, timely delivery and reliability and most importantly our pace in keeping up with the changing technology in the industry. To stay competitive, we regularly update our existing facilities/technology and adopt new technology for our manufacturing facilities. We aim to keep our costs of production low to maintain our competitive advantage and our profit margins.

We continuously seek new product registrations, marketing authorizations to increase our product offerings.

4. Prospect & Outlook

Growing Power Sector: The Indian electrical equipment market is projected to continue its growth trajectory, driven by increasing energy demand, a focus on the significant government investments in power infrastructure. As the government revamps and upgrades the power grid, there will be a continued demand for the companys core products.

Product Diversification: The company has identified new avenues for growth by planning to enter the ancillary industries with its products, specifically tinned copper wires. This diversification can reduce its dependence on the power and transformer sectors and open up new markets for its products.

The management is of the view that the future prospects of your Company are bright and the performance in the current year is expected to be very well. The committed customers of the Company are expected to place more orders, which ultimately affect the top line of the Company, positively.

5. Risks And Concerns

The company recognizes several risks that could impact operations. Key risk factors include volatile input costs (copper and aluminium prices), intense industry competition, regulatory changes and macroeconomic volatility. For instance, the MD&A notes that “since major raw material for our company is copper and aluminium, our margins are mainly linked to commodity prices” and that overall “the macro-economic situation will remain challenging” with high inflation, interest rates and currency pressures.

In its prospectus, Divine Power lists numerous potential disruptors such as increased competition in the power distribution industry, rapid technology changes, and general economic uncertainties.

It also emphasizes long-term supply contracts and a reliable vendor base (NALCO, Hindalco, etc.) to reduce procurement risk.

The Company has taken adequate preventive and precautionary measures to overcome all negative factors responsible for low trend to ensure steady growth.

6. Discussion on Financial Performance with respect to Operational Performance

The details of the financial performance of your Company are reflected in the Balance Sheet, Profit & Loss Account and other Financial Statements, appearing separately. Highlights are provided below:

(INR Lakhs)

Particulars	Standalone
	2025	2024
Revenue from Operations	34,166.78	22,208.00
Other Income	52.40	63.99
Total Income	34,219.18	22,271.99
Profit/(Loss) Before Tax	1,294.98	816.58

The financial performance of your Company has been further explained in the Directors Report of your Company for the year ended 31st March, 2025 appearing separately.

7. Economic Outlook

The long-term fundamentals of the Indian economy continue to be strong due to rising incomes and large investments. These growth drivers are expected to sustain over a long period of time. At the same time, there are some concerns due to uncertain global economic environment and slow recovery in developed markets.

8. Human Resources

The Company keeps developing its organizational structure consistently over time efforts are made to follow excellent Human Resource practices. Adequate efforts of the staff and management personnel are directed on imparting continuous training to improve the management practices. The objective of your company is to create a workplace where every person can achieve his or her potential. The employees are encouraged to put in their best. Lots of hard work is put in to ensure that new and innovative ideas are given due consideration to achieve the short and long term objectives of your company.

The employees are satisfied and having good relationship with management.

9. Cautionary Statement

Certain statements in the Management Discussion and Analysis describing your Companys views about the industry, expectations/predictions, objectives etc. may be forward looking within the meaning of applicable laws and regulations. Actual results may differ from those expressed or implied in these statements. Your Companys operations may, inter-alia, be affected by the supply and demand situations, input prices and availability, changes in Government regulations, tax laws, government or court decisions and other factors such as industry relations and economic developments etc. Investors should bear this in mind when considering the above statements.

10. Year on Year Financial Performance During FY 2024-25

Divine Power Energy Limited delivered strong growth across all key financial parameters compared to FY 2024-2025.

• Revenue grew by 54%, increasing from ?222.08 Cr in FY 2023-24 to ?342 Cr in FY 2024-25. This growth was driven by higher order execution, stronger demand in the power and transformer sector, and improved capacity utilization.

• Net Profit rose by 42.8%, from ?6.41 Cr to ?9.15 Cr. While profitability improved, the Operating Profit Margin witnessed a slight moderation from 6.47% in FY 2023-24 to 5.75% in FY 2024-25, primarily on account of raw material price fluctuations and increased finance costs due to business expansion.

• Share Capital increased by 50.9%, from ?15.78 Cr to ?23.8 Cr, reflecting fresh infusion of equity capital post conversion to a public company and IPO listing.

• Reserves & Surplus registered a sharp rise of 536.6%, reaching ?62.3 Cr in FY 2024-25 from ?9.79 Cr in the previous year. This reflects retained earnings, premium from fresh capital raised, and strengthening of the companys financial base.

• Total Liabilities increased significantly by 174.5%, from ?63.33 Cr to ? 173.8 Cr, indicating higher borrowings and trade liabilities to support increased scale of operations.

• Net Worth (Equity) strengthened by 236.5%, moving from ?25.57 Cr in FY 2023-24 to ?86.07 Cr in FY 2024-25, underscoring a stronger balance sheet and improved shareholder value post IPO.

	RAJESH GIRI	VIKAS TALWAR
Date: 04th Septemeber, 2025	(Managing Director)	(Director)
Place: Delhi	DIN: 02324760	DIN: 01709711