Elango Industries Ltd Management Discussions

Annexure 01 REPORT COMPANY OVERVIEW

Elango Industries Limited was originally established in 1994 with the setup of a steel plant for producing steel ingots in Karaikal and Pondicherry. After operating in the steel industry for nearly a decade, the business was divested, and the promoters shifted focus to the power sector. In 2005, they commissioned a 7 MW gas-based power plant in Mayiladuthurai.

Recognizing the growing opportunities in the power generation sector, the Company further expanded its operations by establishing a 63 MW coal-based captive power plant in 2012. Since then, Elango Industries Limited has primarily operated as a power generation and distribution company.

In recent years, the Company has diversified its services by offering operation and maintenance (O&M) solutions for power plants, which now form a significant part of its revenue. To further enhance its revenue streams, the Company has started marketing and selling power generated by its clients power plants.

OPPORTUNITIES AND THREATS

Indias renewable energy sector continues to witness strong growth, supported by favourable Government policies, increasing energy demand, and the countrys commitment towards achieving net-zero carbon emissions. The Company views this transition as a significant opportunity to expand its operations and strengthen its position in the energy sector.

The Company is actively pursuing the development of a solar power generation project with a proposed capacity of 20 MW in Mayiladuthurai, Tamil Nadu. The project is expected to be implemented in phases, with the initial phase comprising approximately 3 MW capacity coupled with battery energy storage systems. Upon receipt of the required approvals and completion of financial arrangements, the Company intends to commence implementation of the project.

In addition to power generation, the Company is exploring opportunities in energy storage solutions, power trading, and value-added services within the renewable energy ecosystem. The management remains focused on improving operational efficiencies, expanding its customer base, and leveraging emerging opportunities in the clean energy sector.

The Board believes that the Companys strategic emphasis on renewable energy, coupled with its experience in power generation and O&M services, will support sustainable growth, enhance shareholder value, and contribute positively towards environmental sustainability in the years ahead.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has a proper and adequate internal control system to ensure that all the assets of the Company are safeguarded and protected against any loss and that all the transactions are properly authorized and recorded. Information provided to management is reliable and timely. Company ensures adherence to all statutes. The Internal Financial Control systems are adequate considering the present state of business. The company has established Internal Financial Control framework including internal control over financial reporting operating controls and fraud framework. The framework is revised regularly by the management and tested by the internal audit team. Based on the periodical testing, the frame work is strengthened from time to time to ensure adequacy and effectiveness of Internal Financial Controls. The Report of the Statutory Auditors containing the Internal Financial Controls is given in the Statutory Auditors Report for the year ended March 31, 2026

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the financial year 2025-26, the Company continued its focus on power generation, operation and maintenance (O&M) services, and power marketing activities. The O&M segment remained a significant contributor to the Companys revenue stream, supported by long-standing customer relationships and efficient service delivery.

The Companys financial performance during the year reflected the challenges and opportunities prevailing in the power sector. While fluctuations in fuel costs, regulatory developments, and market conditions continued to impact the industry, the Company maintained operational stability through prudent cost management and effective utilization of resources.

Recognizing the increasing demand for clean and sustainable energy, the Company intensified its efforts towards expanding its presence in the renewable energy sector. During the year, the Company undertook various preparatory activities relating to the proposed solar power project in Mayiladuthurai, Tamil Nadu, including feasibility assessments, discussions with regulatory authorities, prospective investors, and potential power consumers.

The management believes that diversification into renewable energy will strengthen the Companys business model, reduce dependence on conventional power generation, and create long-term value for stakeholders. The renewable energy initiatives undertaken during the year are expected to provide sustainable revenue streams and improve the Companys growth prospects in the coming years

BOARD EVALUATION

The Board of Directors has carried out an annual evaluation of its own performance, board committees, and individual Directors pursuant to the provisions of the Act and SEBI Listing Regulations. The performance of the Board was evaluated by the Board after seeking inputs from all the Directors on the basis of criteria such as the board composition and structure, effectiveness of board processes, information and functioning, etc. The performance of the committees was evaluated by the Board after seeking inputs from the committee members on the basis of criteria such as the composition of committees, effectiveness of committee meetings, etc.

The above criteria are broadly based on the Guidance Note on Board Evaluation issued by the Securities and Exchange Board of India on January 5, 2017. In a separate meeting of Independent Directors, performance of Non-Independent Directors, the Board as a whole and the Chairman of the Company was evaluated, taking into account the views of Executive Directors and Non-Executive Directors.

HUMAN RESOURCES

The Company strives to maintain a cordial relationship and healthy atmosphere with its employees at all times. Continuous commitment to upgrading skills is an integral part of the human resource development policy of the Company. The Company is an equal opportunity employer and promotes diversity in its workforce. Equal opportunities are given to optimize their potential and improve their standard of living. The Company lays great emphasis on retention of its human talents. Employees welfare is a paramount consideration of the Company.

CAUTIONARY STATEMENT

The Management Discussion and Analysis Report contains forwarding looking statements based upon the data available with the Company, assumptions with regard to global economic conditions, the Government policies etc. The Company cannot guarantee the accuracy of assumptions and perceived performance of the Company in future. Therefore, it is cautioned that the actual results may materially differ from those expressed or implied in the report.

	For and on behalf of the Board of Directors
	Elango Industries Limited
Place: Chennai	S. Elangovan	S. A. Premkumar
Date: 28.05.2026	Managing Director	Director
	(DIN: 01725838)	(DIN: 00342952)