Dynavision Ltd Management Discussions

ANNEXURE II

Management Discussion and Analysis forms part of the Annual Report to the shareholders and it includes discussion on matters as required as per Companies Act 2013.

1. OUTLOOK Global Economy

According to the IMF World Economic Outlook (April 2025), the global economy is expected to experience moderate growth amid evolving trade policies, geopolitical uncertainties and tighter financial conditions. Global growth is projected at 2.8 percent in 2025 and 3.0 percent in 2026. While growth in advanced economies is expected to remain modest, emerging market and developing economies are projected to continue contributing significantly to global economic expansion despite external headwinds. The global outlook remains subject to risks arising from geopolitical tensions, trade policy uncertainties and inflationary pressures, although easing financial conditions and continued technological advancements are expected to support medium term growth.

Source: IMF World Economic Outlook, April 2025.

Economy

The Indian economy continued to remain resilient during FY 2025–26, supported by robust domestic demand, sustained public infrastructure spending and healthy private sector investments. Continued policy support, increasing capital expenditure and stable macroeconomic fundamentals have strengthened economic activity across sectors. The renewable energy sector continues to receive significant policy support, creating long term growth opportunities.

2. INDUSTRY STRUCTURE AND DEVELOPMENTS:

The Company is currently engaged in leasing of its own property. The Companys subsidiary, Dynavision Green Solutions Limited, continues to operate its 6.477 MW solar power generation facility. The Company continues to explore suitable business opportunities in the renewable energy and other emerging sectors.

SOLAR INDUSTRY

Indias transition towards clean energy has gathered significant momentum over the last decade, driven by rising electricity demand, climate commitments, and the need to enhance long term energy security. Solar energy has emerged as the fastest growing source of renewable power due to declining technology costs, improved efficiency of photovoltaic modules, and strong policy support from both the Central and State Governments.

The countrys renewable energy strategy is focused on increasing the share of clean energy in the overall power mix while reducing dependence on conventional fossil fuels.

Tamil Nadu continues to be one of Indias leading renewable energy states, supported by abundant solar irradiation, strong wind resources, and a well developed transmission network. The State has consistently remained at the forefront of renewable energy adoption and has set ambitious targets for expanding solar and wind capacity over the coming years. Large scale utility projects, rooftop solar installations, captive power plants, and hybrid renewable projects are expected to play a crucial role in meeting the growing electricity requirements of industries, commercial establishments, and households.

South India as a region has emerged as the countrys renewable energy hub, with Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, and Kerala collectively accounting for a substantial share of Indias installed renewable energy capacity. Favorable climatic conditions, availability of land in suitable locations, proactive state policies, and increasing private sector participation have accelerated investments in utility scale solar parks, floating solar projects, energy storage systems, and green hydrogen initiatives. The integration of renewable energy with battery storage and smart grid technologies is expected to further improve grid reliability and facilitate higher penetration of clean power.

According to recent industry estimates, Tamil Nadu has an installed solar capacity exceeding 11 GW and wind capacity of over 11 GW, making it one of the largest renewable energy markets in the country. The State Government aims to substantially increase renewable energy capacity over the next decade through supportive policies, transmission infrastructure expansion, and promotion of distributed renewable generation. Across South India, renewable energy capacity is expected to witness sustained growth as governments and private developers continue to invest in large scale solar, wind, and hybrid projects to support Indias clean energy transition and long term sustainability objectives.

The continued emphasis on decarbonization, increasing corporate adoption of renewable energy through open access mechanisms, advancements in energy storage technologies, and growing investments in transmission infrastructure are expected to create significant opportunities for the renewable energy sector. With strong policy support, improving economics of solar generation, and increasing focus on sustainable development, Tamil Nadu and the southern region are well positioned to remain key contributors to Indias renewable energy growth in the coming years.

3. OPPORTUNITIES

The renewable energy sector in India continues to offer significant growth opportunities, supported by rising electricity demand, favourable government policies, and the countrys commitment to achieving net zero emissions by 2070. Solar photovoltaic (PV) technology has emerged as one of the most cost effective and scalable sources of clean energy, enabling power generation for utility scale projects, commercial and industrial consumers, and residential applications. Continuous advancements in module efficiency, energy storage solutions, and digital monitoring systems are further enhancing the reliability and commercial viability of solar power projects.

Tamil Nadu remains one of the most attractive destinations for renewable energy investments owing to its high solar irradiation, established transmission infrastructure, and strong industrial base. The State receives average solar radiation ranging between 5.0 and 5.5 kWh/m? per day across many parts of the state, making it well suited for large scale solar installations as well as distributed rooftop projects. Growing electricity consumption across manufacturing, commercial, and agricultural sectors is expected to create sustained demand for clean and reliable power, providing significant opportunities for developers and investors.

The Government of India and various State Governments continue to introduce policy initiatives aimed at accelerating renewable energy deployment. These include support for utility scale solar parks, rooftop solar programmes, open access regulations, renewable purchase obligations (RPOs), green energy corridors, production linked incentives for domestic manufacturing, and the promotion of energy storage and hybrid renewable projects. Such initiatives are expected to encourage greater private sector participation while improving the economics of renewable energy investments.

Corporate demand for renewable energy is also witnessing steady growth as businesses increasingly adopt Environmental, Social and Governance (ESG) practices and seek to reduce their carbon footprint. Open access solar projects, captive power plants, group captive arrangements, and long term power purchase agreements (PPAs) are gaining wider acceptance among industrial and commercial consumers due to their ability to provide cost competitive and sustainable power over the long term.

4. OVERALL REVIEW:

The entire factory premises continue to be leased to M/s. Apollo Hospitals Enterprise Limited. for operating a world class multi speciality hospital. During the year under review, the Company earned stable rental income from its leased property, while its subsidiary, Dynavision Green Solutions Limited, continued generation of solar power through its 6.477 MW solar power plant. The Company reported a net profit of Rs. 858.42 lakhs for the year ended 31st March, 2026, as against Rs. 619.85 lakhs in the previous year. Your Board continues to explore suitable investment and business opportunities to enhance long term shareholder value.

5. THREATS, RISK AND CONCERNS:

The renewable energy sector continues to present attractive growth opportunities, however it is also exposed to various business, operational, regulatory, and market related risks. The development of solar power projects requires significant capital investment, long project development cycles, availability of suitable land, timely statutory approvals, and access to adequate transmission infrastructure. Delays in any of these areas may impact project execution timelines and overall returns.

The sector is influenced by changes in government policies, regulatory frameworks, tariff structures, and renewable energy procurement mechanisms at both the Central and State levels. Competitive bidding has resulted in declining tariff levels, increasing pressure on project margins and requiring developers to continuously improve operational efficiency and optimize costs. Further, fluctuations in the prices of solar modules and other key equipment, changes in import duties, supply chain disruptions, and foreign exchange movements may affect project economics.

Grid availability, transmission constraints, payment delays from certain power distribution companies, and evolving regulatory requirements continue to remain industry challenges. In addition, increasing competition from established developers, technological advancements, and the emergence of alternative clean energy solutions require companies to continuously adapt their business strategies and enhance operational capabilities. Despite these challenges, the Company remains focused on identifying prudent investment opportunities within the renewable energy sector while maintaining a disciplined approach towards risk management. The management continuously monitors regulatory developments, evaluates investment opportunities based on commercial viability, and adopts appropriate mitigation measures to safeguard stakeholder interests. The

Companys experienced leadership, prudent financial management, and focus on sustainable growth are expected to strengthen its ability to navigate industry challenges and capitalize on emerging opportunities in the evolving renewable energy landscape.

6. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has adequate system of internal control to safeguard and protect from loss, unauthorized use or disposition of its assets.

All the transactions are properly authorized, recorded and reported to the Management. The Company is following all the applicable Indian Accounting Standards for properly maintaining the books of accounts and reporting financial statements.

Considering the size and nature of business the company has appointed an Internal Auditor for the company from the financial year 2016-17 to ensure proper and adequate systems and procedures commensurate with its size and nature of its business. Internal Auditors continue to monitor the operations and administration of the company.

7. SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

The Company operates under two business segments: (a) renting of investment property and (b) implementation of solar power projects. (EPC) For the year ended 31st March 2026, revenue from the implementation of solar projects is nil for the year. Meanwhile, lease rental income for the year ended 31st March 2026 amounted to Rs. 822.59 lakhs, compared to Rs. 821.73 lakhs in the previous year.

8. FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

The total income of the company for the year ended 31st March 2026 was Rs 1,135.82 Lakhs as against Rs.

1,212.59 Lakhs during the Previous year. Profit Before Tax was Rs. 784.51 Lakhs as against Rs. 800.85 Lakhs in the previous year. Profit After Tax was Rs. 858.42 Lakhs as against Rs. 619.85 Lakhs in the previous year.

9. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/ INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

During the year, the human resource relations continued to be cordial, conducive and mutually productive.

Human resources are used efficiently to achieve success, stability and growth of the Company. The total employees as at the year-end were 9 (Nine only)

10. KEY RATIOS:

In accordance with the SEBI (Listing Obligations and Disclosure Requirements 2018) (Amendment)

Regulations, 2018, the Company is required to give details of significant changes (change of 25% or more as compared to the immediately previous financial year) in key sector specific financial ratios.

RATIO	FY 2025-26	FY 2024-25	% of Change	Explanation
Current Ratio	14.38	6.45	122.95%	The Current ratio indicates the Companys overall liquidity position. It measures a Companys ability to pay short-term obliga- tions or those due within one year. It is cal- culated by dividing current assets by current liabilities. The increase in current ratio is con- tributed by decrease in the excess Tax provi- sions during the year.
Trade Receiv- ables Turnover ratio	4,013.00	23.58	16918.66%	The increase is primarily attributable to a substantial reduction in average trade receiv- ables from 41.48 crore to 0.22 crore dur- ing the year. Although revenue from opera- tions decreased by approximately 9.74%, the sharp reduction of approximately 99.47% in average trade receivables resulted in a sig- nificant increase in the turnover ratio.
Net Capital Turnover ratio	29%	39%	-25.64%	The decrease in the Net capital turnover ra- tio is primarily attributable to the additional revenue generated during the previous year combined with improvement in the net work- ing capital position during the current year.
Net Profit ratio	97%	63%	34.00%	The increase in the Net Profit Ratio is primar- ily due to the reversal of the prior period ex- cess tax provisions.

11. DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF

RATIO	FY 2025-26	FY 2024-25	% of Change	Explanation
Return on Net worth	0.29	0.28	3.57%	The Return on Net Worth increased during the year mainly on account of higher profitability as compared to the previous financial year

 

	For and on behalf of the Board of Directors
	SULEELAL. V	HARSHAD REDDY
	Managing Director	Director
	DIN: 10711642	DIN: 02364798
PLACE:- Chennai
DATE:- 12.08.2026