Empower India Ltd Management Discussions

Indian Economy Overview

Indias economy continues to grow at a steady and confident pace, standing out as the fastest growing major economy in the world. In 2024 25, real GDP growth was estimated at 6.5 per cent. The Reserve Bank of India expects the same rate to continue in 2025 26. This performance comes at a time when the global economy going through a Heightened uncertainty, driven by trade tensions, policy uncertainties, and slowdown in cross-border investments.

With Steady Growth in GDP and inflation easing to 2.82% in May 2025, the lowest level since February 2019, India has demonstrated its ability to balance expansion with price stability.

Concurrently, robust capital market participation, record export performance, and healthy foreign exchange reserves underscore rising confidence in the countrys economic outlook, both domestically and internationally.

Renewable Energy Sector Overview:

India has made significant progress in strengthening its energy sector in recent years. The country is successfully balancing the twin goals of meeting rising electricity demand and promoting sustainability. According to the International Energy Agency (IEA), 85% of the increase in global electricity demand over the next three years will come from emerging and developing economies. As one of the fastest-growing major economies, India plays a central role in the global energy transition. Its energy demand is expected to grow at the fastest rate among major economies, driven by sustained economic growth. Consequently, Indias share in global primary energy consumption is projected to double by 2035.

Over the past decade, Indias power sector has seen robust expansion driven by rising demand, infrastructure development, and strong policy support for both conventional and renewable energy sources. The Indian Renewable Energy Market is Expected to reach USD 52.1 Billion by 2033, Exhibiting a growth rate of CAGR 8.1%.

As of June 2025, Indias total installed power capacity has reached a significant milestone with 476 GW, where renewable Energy accounting for 49% of the Total Installed power generation Capacity. This includes 226.9 GW from renewables and 8.8 GW from nuclear power, marking a major milestone in the nations transition toward clean energy. The achievement underscores

Indias steady progress towards the target of achieving 500 GW of non-fossil fuel-based capacity by 2030, marking a key milestone in the nations decarbonization journey and reaffirming its commitment to a sustainable future.

Indias solar sector has witnessed rapid, transformative growth, with installed capacity rising more than 39 times, from 2.82 GW in 2014 to 110.9 GW in 2025, including a record addition of 23.83 GW in 2024 25 alone. This remarkable expansion, fueled by government initiatives, declining costs, and robust domestic demand, has positioned solar as the leading source of clean energy, now accounting for 47.06 percent of Indias total non-fossil fuel installed capacity.

Technology Industry Overview

The global technology industry, after navigating a period of slowdown marked by inflationary pressures, rising interest rates, and weak consumer sentiment, is entering a phase of recovery. In India, technology remains one of the strongest pillars of economic progress, supported by widespread digital adoption, a deep-rooted IT services ecosystem, and increasing investments in advanced solutions. Areas such as artificial intelligence, cloud infrastructure, and cybersecurity are taking center stage, with enterprises accelerating digital transformation to improve productivity, resilience, and competitiveness.

A widening talent shortage in high-demand fields like AI, data science, and cloud technologies has emerged as a critical barrier. Projections suggest that by 2026, a large portion of the workforce requirement in these domains may remain unmet. While this talent gap could potentially slow industry growth, it also opens avenues for large-scale skill development, reskilling, and closer collaboration between academia and industry to build future-ready capabilities.

With its demographic advantage, strong export potential, and established reputation as a global technology hub, India is well-positioned to sustain its leadership in the digital economy. Although near-term challenges in workforce readiness and global demand cycles persist, the medium- to long-term outlook for the sector remains highly promising, with technology poised to be a key driver of inclusive and sustained economic growth.

Housing Sector in India Overview

Indias housing sector is a vital pillar of the economy, contributing nearly 7 8 percent to GDP and generating large-scale employment across construction, real estate, and allied industries.

The sector is witnessing strong demand, driven by rapid urbanization, with the urban population projected to reach 40 percent by 2030, alongside rising household incomes and evolving lifestyle aspirations. Affordable housing continues to account for the majority of demand, particularly from first-time buyers, while mid-income and premium housing are gaining traction due to increased disposable incomes and improved financing options.

Government support has been a major catalyst in sustaining momentum. Initiatives like the Pradhan Mantri Awas Yojana (PMAY), tax incentives on home loans, and infrastructure status for affordable housing have created a favorable ecosystem for both buyers and developers. Regulatory reforms such as RERA have further enhanced transparency and accountability, attracting greater investor confidence, including foreign direct investment into the real estate sector.

The sectors multiplier effect on allied industries such as cement, steel, paints, and furnishings makes it critical for broader economic growth. With consistent policy push, rising private participation, and structural demand, Indias housing sector is poised for steady expansion, reinforcing its role as a long-term growth driver.

Financial Performance:

During FY2025, Empower India Ltd recorded revenue of 12,946.68 lakh, reflecting an 8 percent increase compared to 12,001.49 lakh in FY2024. This steady growth in revenue highlights the Companys continued operations in the solar energy sector during the year.

At the profitability level, the Company reported a net profit of 521.83 lakh in FY2025 as against 691.27 lakh in FY2024, representing a decline of 25 percent year-on-year. The corresponding earnings per share (EPS) stood at 0.0448 for FY2025 compared to 0.0594 in the previous year, also showing a reduction of 25 percent.

While revenue growth remained positive, the decline in profit and EPS reflects changes in the financial outcome for the year as compared to the previous period. While short-term margins remain under pressure, the Company is confident of strengthening profitability over the medium term through scale efficiencies, technology integration, and Indias strong push towards solar energy adoption.

Key Ratios:

Opportunities

The technology industry is also regaining momentum, driven by rapid digital adoption and enterprise investments in artificial intelligence, cloud computing, and cybersecurity. Indias established IT services base and young workforce provide a solid foundation for sustained digital growth.

Indias renewable energy sector offers significant long-term potential, with the country steadily advancing toward its target of non-fossil fuel capacity by 2030. Solar power has emerged as the leading source of clean energy, supported by government initiatives, declining costs, and strong domestic demand.

In housing, steady urbanization, rising incomes, and government-backed initiatives such as Pradhan Mantri Awas Yojana (PMAY) are fueling strong demand across affordable, mid-income, and premium segments, creating long-term opportunities for both developers and investors.

Threats

Key challenges remain across these sectors. Renewable energy expansion relies heavily on large-scale infrastructure development, effective policy execution, and stable supply chains. In technology, the widening talent gap in high-demand areas such as AI and cloud computing could slow adoption, while global uncertainties and inflationary pressures add further risks. In housing, rising construction costs, financing constraints, and regulatory complexities may impact project delivery and affordability. Addressing these challenges will be essential to ensure sustained growth and maximize sectoral potential.

Adequacy of Internal Controls

Empower India Limited has implemented a robust and comprehensive system of internal controls designed to safeguard its assets, ensure operational efficiency, and maintain the accuracy and reliability of financial reporting. The internal control framework ensures that all transactions are duly authorized, properly recorded, and effectively monitored. Independent internal audits are carried out periodically in accordance with a structured annual audit plan, and key findings along with ‘Action Taken Reports are regularly presented to the Audit Committee. Inputs from statutory auditors are also incorporated to further strengthen and refine the control environment.

Human Resources

Empower India Limited recognizes its employees as a vital driver of sustainable growth in the solar industry. The Company nurtures a culture of collaboration, inclusivity, and continuous learning. Regular training sessions and development initiatives are conducted to enhance technical expertise, operational efficiency, and alignment with emerging renewable energy technologies and industry best practices. The organization maintains a supportive and growth-oriented environment, reflected in employee satisfaction and retention. Strong teamwork and a shared sense of responsibility continue to foster a culture of performance, accountability, and innovation.

Cautionary Statement

The Management Discussion and Analysis may include forward-looking statements based on current expectations of Empower India Limited. These statements may cover projections, strategic plans, and anticipated developments. Actual results, however, could differ materially due to various risks and uncertainties, including changes in government policies, economic conditions, regulatory frameworks, raw material price fluctuations, global supply chain dynamics, and competitive pressures in the solar energy sector. The Company assumes no obligation to publicly revise or update any forward-looking statements except as required under applicable laws.