Elpro International Ltd Management Discussions

The Management Discussion and Analysis Report represents the key performance highlights of the financial year 2025-26, pertaining to the Companys business. This review should be read in conjunction with the Report presented in the other sections i.e., the Companys financial statements, the schedules and notes thereto and the other information included elsewhere in this Annual Report. The Companys financial statements for the financial year ended March 31, 2026, have been prepared in accordance with Indian Accounting Standards (IndAS) and in compliance of the requirements of Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Industry Structure and Developments:

Indias economic outlook for 2027 remains strong, with the country expected to remain among the worlds fastest-growing major economies. Following GDP growth of 7.6% in financial year 2025-26, momentum is expected to remain healthy in financial year 2026-27, supported by robust domestic demand, resilient services, manufacturing growth and sustained infrastructure investment. Lower inflation, tax relief and supportive monetary conditions should continue to aid consumption and investment.

The Union Budget financial year 2026-27 continues to balance fiscal consolidation with a strong focus on capital expenditure, infrastructure, manufacturing and other strategic sectors. Improving private investment, healthy financial-sector balance sheets and ongoing structural reforms further strengthen Indias medium-term prospects. Despite global trade tensions, geopolitical risks and commodity-price volatility, Indias domestic demand and policy stability provide a strong buffer against external shocks.

Indian Real Estates:

The real estate sector continued to benefit from favourable structural trends, including rapid urbanisation, rising disposable incomes and evolving consumer preferences. Residential demand remained healthy, particularly across the mid-income and premium segments, supported by stable financing conditions and sustained buyer confidence. Commercial real estate also maintained positive momentum, driven by demand for quality office spaces from sectors such as IT, BFSI and emerging businesses.

Going forward, Indias strong macroeconomic fundamentals, favourable demographics and continued policy support are expected to provide a supportive environment for the real estate sector. While global economic uncertainty, commodity-price volatility and financial-market risks remain key monitorables, the sector is well positioned to sustain its growth momentum and remain an important contributor to Indias long-term economic development.

Indian Equity Markets:

Foreign Portfolio Investors (FPIs) continued to remain cautious towards Indian equities during the early part of financial year 2026-27, amid elevated crude oil prices, geopolitical uncertainty, global trade concerns and relative attractiveness of other emerging markets. Foreign selling remained significant during the first half of calendar year 2026. Current estimates vary across brokerages, but broadly point towards a mid-teens recovery in Nifty 50 earnings during financial year 2026-27.

Indian equity markets have nevertheless remained volatile, reflecting geopolitical developments, crude oil prices and continued foreign investor caution.

Looking ahead, corporate earnings delivery will remain a key determinant of market performance and foreign investor flows. A sustained recovery in earnings, together with resilient domestic demand, reasonable valuations and stability in the rupee and crude oil prices, could strengthen Indias relative attractiveness to global investors. Strong domestic institutional and SIP flows should also continue to provide structural support to the market.

Overall, Indias position as one of the fastest-growing major economies, coupled with improving corporate profitability and strong domestic liquidity, provides a favourable medium-term backdrop for Indian equities. However, geopolitical risks, commodity-price volatility and global financial conditions remain important factors to monitor.

Business Overview and Segment wise Performance:

The Company is engaged in the manufacturing of Electrical equipments which includes manufacturing and sale of Lightning Arresters, Varistor, Secondary Surge Arresters, Discharge Counter, accessories and services in respect thereof; Real Estate includes development of property and lease of land & premises, Trading activity includes trading in commodities, financial instruments and derivatives thereof; Investment activity includes investment in businesses that provide reasonable returns and good growth prospects and power generation from Windmill.

The Companys revenue from manufacturing of electrical equipments increased from Rs. 412.01 Lakhs in Financial Year 2024-25 to Rs. 490.52 Lakhs in Financial Year 2025-26 and revenue from real estate increased from Rs. 10,750.80 Lakhs in Financial Year 2024-25 to Rs. 11,626.03 Lakhs in Financial Year 2025-26, revenue from trading activity stood at Rs. 4,711.30 Lakhs in Financial Year 2025-26 and lastly, revenue from other activity (includes power generation from Windmill) increased from Rs. 65.96 Lakhs in Financial Year 2024-25 to Rs. 75.23 Lakhs in Financial Year 2025-26.

The detailed segment wise and product wise performance of the Company is given in the notes to accounts for the Financial Year ended March 31, 2026.

The Company has enough liquid financial resources and strong investment management team, providing a reasonable income in long run as well as capital growth opportunities. The Company manages and monitors liquidity regularly, ensuring that it is sufficient to meet the Companys objectives.

The Company is continuing its effort to explore new market in export as well as in domestic market and adopting new technologies, in order to grow sustainably.

Strengths:

(1) Diversified and Experienced Board:

The Company is managed by a team of diversified and experienced Board Members with deep knowledge of the core aspects of Companys business activities and considered as biggest strength for the organization.

(2) Long term business relationship with the Clients:

The Company believes in maintaining long term business relationship with the Customers in terms of increased revenues. Our dedicated focus on customer coverage and our ability to provide timely solutions and faster resolution of customer complaints, if any, has helped us to establish long term business relationships. This key strength has helped us to receive repeat business from our customers.

The Company has also successfully built a goodwill in the Indian market and has developed customers trust over a period of time because of timely execution of contracts / arrangements with customers, competitive pricing and best customer service.

(3) Strong cash flows:

The Company has built a business model that ensures strong cash flows from their investment and real estate business activities. The Management Team strives for steady cash flow even during the adverse business cycles.

(4) Highly qualified Management Team:

The Company has experienced, capable and highly qualified management team who can oversee and execute business aspects of the Company.

(5) Transparency:

The Company follows a strong culture of corporate governance and ensures transparency and high level of business ethics.

Opportunities:

The Company is pursuing growth opportunities in various segments in which it operates. The Company has Shopping and Entertainment Mall named Elpro City Square Mall in Pune, Maharashtra, India, which is fully operational and active. The Company has a manufacturing unit situated at Pune Maharashtra, India which produces Electrical equipments includes manufacturing and sale of Lightning Arresters, Varistor, Secondary Surge Arresters, Discharge Counter, accessories and services in respect thereof. Beside these, the Company is engaged into trading activity includes trading in commodities, financial instruments and derivatives thereof and had made investments in diversified listed, unlisted, managed assets and fixed income securities with an objective to achieve superior risk adjusted returns on long term sustainable basis. The Company has also windmill operations based at Karnataka and Maharashtra, India.

Considering the above business segments, the Management Team is optimistic about the Companys future growth and prospects. The Company has ample opportunity to grow in long run.

Threats:

(1) Market Completion in real estate industry

(2) High Volatility in the capital market caused due to geopolitical and other unforeseen events.

(3) Changes in regulatory environment, could sometime cause short term disruption.

However, the Company has various due diligence systems in place to mitigate the impact of the threats mentioned above and to ensure transparency and accountability in the day-to-day business activities.

Financial and Operational Performance:

The key highlights of the standalone financials are given below:

Particulars	FY 2025-26	FY 2024-25
Total Income	25,542.66	27,251.08
Profit Before Tax (after exceptional items)	2,792.64	3,624.98
Profit After Tax (PAT)	3,327.36	3,777.76

Key Financial Ratios:

As per provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Key Financial Ratios are given below:

Particulars	Financial Year ended		Deviations	Reasons
	March 31, 2026	March 31, 2025
Debtors Turnover Ratio (times)	31.51	32.37	-2.66%	Decline in revenue outpaced the fall in average trade receivables_
Inventory Turnover Ratio (times)	4.45	4.47	-0.48%	Rise in manufacturing segment inventories was broadly in line with rise in manufacturing segment turnover_
Interest Coverage Ratio (times)	1.29	1.58	-18.17%	Due to increase in interest expense_
Current Ratio (times)	0.51	0.44	15.18%	Current assets grew at a faster rate than current liabilities_
Debt Equity Ratio (times)	0.50	0.47	7.20%	Due to increase in current and non-current borrowings_
Operating Profit Margin (%)	28.76	21.75	32.22%	Margin improved mainly due to the reduction in purchases of stock-in-trade_
Net Profit Margin (%)	19.68	18.09	8.85%	Fall in profit after tax was proportionately lower than the fall in revenue_
Return on Net Worth (%)	1.64	2.15	-23.73%	Due to decrease in net profit after tax_

Internal Control Systems and their Adequacy:

A separate paragraph on internal financial control systems and their adequacy has been provided in the Directors Report, which forms part of this Annual Report.

Human Resources:

The Company has been continuously working to advance human resources skills, competencies and capabilities within the organization, which are critical to achieve desired results in line with the strategic business ambitions. The Company strongly believes that to achieve continual success, a dedicated and devoted workforce is very much required to get high performance and improved productivity. The Company has left no stones unturned for enhancing the capabilities of employees across all levels of the Organization through continuous learning and development programs.

The total employee strength as on March 31, 2026 stood at 55.

Cautionary Statement:

Statements in this management discussion and analysis report describing the Companys objectives, projections, estimates and expectations may be forward looking statements within the meaning of applicable laws and regulations. Actual results may differ substantially or materially from those expressed or implied. Important developments that could affect the Companys operations include a downtrend in the industry - global or domestic or both, significant changes in political and economic environment in India, applicable statues, litigations etc.

Mumbai, April 28, 2026