Energy-Mission Machineries India Ltd Management Discussions

ANNEXURE-A

(Pursuant to Regulation 34(2)(e) read with Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015)

Your directors have pleasure in presenting the Management Discussion and Analysis Report of Energy-Mission Machineries (India) Limited ("the Company" or "EMMIL") for the financial year ended 31st March, 2026.

Established in 2011, Energy-Mission Machineries (India) Limited is engaged in the business of designing and manufacturing CNC, NC and conventional metal-forming machines catering to the requirements of the industrial sector for metal fabrication solutions.

The Companys product portfolio comprises a wide spectrum of metal-forming machinery, including press brake machines, shearing machines, plate rolling machines, iron worker machines, hydraulic presses, busbar bending, cutting and punching machines and other special-purpose machines. The Companys products find applications across diverse industries including automotive, steel, pre-engineered buildings, furniture, HVAC, agricultural equipment, road construction equipment, elevators, food-processing machinery, metalworking workshops and various other engineering and manufacturing sectors.

The Companys manufacturing facility is situated at Sanand, Gujarat, and is equipped with modern technology and manufacturing processes to provide precision machinery required for metal cutting and forming operations.

The Company continues to offer an extensive range of variants of metal-forming machines and has established a diversified customer base across India as well as international markets. Its products have been supplied to various overseas markets including the USA, Switzerland, Russia, Nepal, Kenya, Uganda, UAE, Saudi Arabia and other Middle Eastern countries.

The Company also provides machinery tools, accessories and spare parts such as die punches, shearing blades, roller sets, holding springs, limit switches, foot switches, seal kits and linear scales, which facilitate effective after-sales service and support.

The manufacturing infrastructure of the Company comprises, inter alia, CNC plasma cutting facilities, machine shop, heavy fabrication shop, hydraulic cylinder shop, hydraulic power-pack shop, electrical panel wiring facilities, sheet-metal shop, shot-blasting chamber, paint-booth chamber, assembly lines and testing facilities.

The financial statements also describe the Companys principal activities as manufacturing hydraulic and NC hydraulic shearing machines, hydraulic, NC and CNC Syncro hydraulic press brakes, Iron Worker Sigma, deep-drawing presses, general-purpose hydraulic presses and special-purpose machines.

The following discussion on the economy and industry is based on various publicly available reports, industry publications and information available in the public domain. The Company does not assume responsibility for any discrepancy or subsequent revision in such external information.

The global economy continued to operate in a challenging and rapidly evolving environment during 2025-26, marked by geopolitical conflicts, trade and tariff uncertainties, volatility in commodity and energy markets, inflationary pressures and continuing changes in global supply chains. At the same time, rapid technological advancement, particularly the increasing adoption of artificial intelligence, automation and digital technologies, continued to create new investment opportunities and productivity gains across industries.

According to the International Monetary Funds July 2026 World Economic Outlook Update, global growth is 2026, followed by an improvement to 3.4% in 2027. The outlook reflects the competing effects of geopolitical and energy-related disruptions on the one hand and technology-driven investment and economic activity on the other.

The operating environment nevertheless remains uncertain. Geopolitical developments, energy-price volatility, protectionist trade measures, changes in tariff structures and financial-market movements could continue to influence global investment and manufacturing activity.

At the same time, growing investment in automation, artificial intelligence, digital manufacturing and advanced production technologies is expected to support demand for sophisticated capital goods and manufacturing equipment. This transition towards smarter and more efficient manufacturing processes presents significant long-term opportunities for the global machine-tool industry.

The Indian economy demonstrated strong resilience during FY 2025-26 despite uncertainties in the global economic environment.

According to the First Advance Estimates released by the National Statistical Office, Indias real GDP was estimated to grow by 7.4% during FY 2025-26, compared with growth of 6.5% during FY 2024-25.

India continues to benefit from strong domestic consumption, infrastructure development, public and private capital expenditure, growing manufacturing activity and continued policy emphasis on domestic manufacturing.

Government initiatives aimed at strengthening the manufacturing ecosystem, infrastructure creation, localisation of supply chains and technological development continue to provide opportunities to the countrys engineering and capital-goods sectors. Programmes such as Make in India and Aatmanirbhar Bharat, together with investments in infrastructure and manufacturing capacity, are expected to encourage greater domestic production and reduce dependence on imported capital goods over the medium to long term.

The increasing adoption of automation, digital manufacturing, artificial intelligence and Industry 4.0 technologies by Indian manufacturers is also creating demand for technologically advanced and precision-oriented machinery.

While global trade uncertainties, geopolitical tensions and commodity-price fluctuations remain key external risks, Indias strong domestic economic fundamentals are expected to continue supporting manufacturing and investment activity.

The machine-tool sector forms an integral part of the capital-goods and engineering industry. Machine tools are often referred to as "mother machines" since they enable the manufacture of machinery and components used across virtually every major manufacturing industry.

The machine-tool industry therefore plays an important role in technological advancement, productivity improvement, quality enhancement and cost competitiveness of the overall manufacturing sector.

The Indian machine-tool industry caters to requirements across automotive and auto components, general engineering, defense and aerospace, railways, infrastructure, construction equipment, electrical equipment, agriculture machinery and various other manufacturing sectors.

The Indian machine-tool industry recorded encouraging performance during FY 2025-26. According to information published by the Indian Machine Tool Manufacturers Association (IMTMA), production turnover of the Indian machine-tool industry reached approximately 16,478 crore during FY 2025-26, representing growth of around 13% over FY 2024-25 and marking the industrys highest-ever production turnover.

The overall consumption of machine tools in India crossed approximately 35,000 crore during the year, reflecting robust underlying demand. Order bookings were approximately 16,176 crore, registering growth of around 20%.

However, imports continue to constitute a significant share of domestic machine-tool consumption. This presents both a competitive challenge and an opportunity for Indian manufacturers to increase localisation and develop technologically advanced products capable of substituting imports.

The increasing adoption of automation, robotics, CNC technology, artificial intelligence, connected machinery, advanced sensors and digitally integrated manufacturing processes is expected to significantly influence the industrys future development.

The continued emphasis on domestic manufacturing and localisation, together with Indias growing engineering capabilities, skilled manpower and expanding manufacturing base, provides a favourable long-term environment for Indian machine-tool manufacturers.

During the financial year under review, the Company continued to register growth in its operations and profitability.

The Companys Revenue from Operations increased to 15,907.69 lakh during FY 2025-26 from 15,049.37 lakh during FY 2024-25, representing an increase of approximately 5.70%. Revenue comprised 15,808.09 lakh from sale of products and 99.61 lakh from sale of services.

The Companys Profit Before Tax stood at 1,690.69 lakh during FY 2025-26 as compared with 1,556.87 lakh during FY 2024-25, reflecting an increase of approximately 8.60%.

The Profit After Tax increased to 1,256.69 lakh during FY 2025-26 from 1,115.70 lakh during FY 2024-25, representing growth of approximately 12.64%. Basic and diluted earnings per share increased to 11.10 from 9.85 in the preceding financial year.

The performance reflects the Companys continued focus on operational efficiencies, customer requirements, cost management, product quality and sustained development of its business.

The Company continues to undertake product development, technological improvement, capacity enhancement, market development and other operational initiatives in the ordinary course of business with the objective of supporting sustainable growth.

The outlook for Indias manufacturing and capital-goods sectors remains positive over the medium to long term, supported by economic growth, infrastructure development, increasing manufacturing investments, localisation initiatives and the growing adoption of automated and technologically advanced production processes.

The Companys growth prospects are closely linked with capital expenditure undertaken by its end-user industries. Accordingly, economic growth, availability and cost of finance, investment cycles, commodity prices and general business confidence can influence demand for the Companys products.

The Company continues to focus on enhancing operational efficiency, developing innovative and value-added products, strengthening customer relationships and exploring opportunities in domestic and international markets.

The Company intends to pursue growth while maintaining financial and operational discipline and shall continue to evaluate opportunities for improving its product portfolio, manufacturing capabilities and geographical reach.

The Company remains optimistic about the long-term growth prospects of the machine-tool and metal-forming machinery industry and will endeavour to capitalise on emerging opportunities while appropriately managing associated risks.

• Experienced and visionary management team with established industry knowledge.
• Strong Research & Development capabilities.
<li>Wide and diversified range of metal-forming machines.
• Established and diversified customer base.
• Modern manufacturing infrastructure and technical capabilities.
• Skilled and trained workforce.
• Strong operational and financial position.
• Established presence in domestic as well as international markets.
• Ability to provide machinery, spare parts and aftersales support.
• Presence in government/tender business and diverse end-user industries.
• Continuous focus on product development and technological advancement.

• Relatively long manufacturing cycle associated with customised and capital-intensive machinery.
• Requirement to maintain inventory of critical components to ensure timely production and delivery.
• Business performance is partly dependent upon the capital-expenditure cycle of customer industries.
• Working-capital requirements associated with manufacturing operations and inventory levels.

• Growing demand for capital goods and manufacturing equipment in India.
• Government initiatives promoting domestic manufacturing and localisation.
• Increasing investments in infrastructure, automotive, defence, railways, renewable energy and general engineering.
• Growing adoption of automation, CNC systems, Industry 4.0 and artificial intelligence in manufacturing.
• Opportunities for import substitution due to Indias continued dependence on imported machine tools.
• Increasing demand for high-precision and technologically advanced machinery.
• Potential for expansion of exports to new geographical markets.
• Opportunities arising from global supply-chain diversification.
• Development of customised and special-purpose machines for emerging industrial applications.

• Competition from established domestic and global machine-tool manufacturers.
• Significant imports of machine tools into India.
• Volatility in prices of steel and other key raw materials.
• Foreign-exchange fluctuations affecting imports and exports.
• Geopolitical tensions and disruption in international supply chains.
• Changes in government policies, tariffs and international trade regulations.
• Economic slowdown or postponement of capital expenditure by end-user industries.
• Rapid technological changes requiring continuous investment in R&D and product development.
• Availability and cost of finance affecting investment decisions of customers.

The Company recognises that risk is an inherent part of business operations and has adopted appropriate processes for identification, assessment, monitoring and mitigation of risks.

The Companys business may be exposed to risks arising from economic conditions, changes in demand from end-user industries, competition, technological developments, raw-material price volatility, supply-chain disruptions, foreign-exchange movements, credit risks, regulatory changes and geopolitical developments.

The Company continues to monitor these risks and undertakes appropriate measures to mitigate their impact. Risk management and mitigation measures are periodically reviewed by the management and, wherever appropriate, placed before the Board of Directors and its Committees.

The Company continues to strengthen its operational processes, diversify its customer base, maintain appropriate financial discipline and focus on technological advancement with a view to mitigating business and operational risks.

The key financial ratios of the Company for the financial year 2025-26, together with the comparative figures for the previous financial year and explanations for material variations, wherever applicable, have been disclosed in the Notes forming part of the Financial Statements.

The financial statements include, inter alia, the Current Ratio, Debt-Equity Ratio, Debt Service Coverage Ratio, Return on Equity Ratio, Inventory Turnover Ratio, Trade Receivables Turnover Ratio, Trade Payables Turnover Ratio, Net Capital Turnover Ratio, Net Profit Ratio, Return on Capital Employed and Return on Investment.

The said disclosures should be read as an integral part of this Management Discussion and Analysis Report.

The machine-tool industry is undergoing a structural transformation driven by digitalisation, automation, artificial intelligence and Industry 4.0.

Manufacturers are increasingly adopting technologically advanced production systems to enhance productivity, improve precision, reduce downtime, optimise resource utilisation and provide greater flexibility in manufacturing operations.

Integration of advanced sensors, artificial intelligence, sophisticated simulation systems, connected machinery and real-time monitoring is expected to improve machine performance and overall equipment effectiveness.

The increasing adoption of smart manufacturing practices is also creating opportunities for predictive maintenance, remote diagnostics, digitally enabled services and data-driven production management.

Customer expectations are gradually shifting towards machines capable of delivering greater precision, speed, flexibility, reliability and energy efficiency. Customisation and shorter product-development cycles are also becoming increasingly important.

The Indian manufacturing sectors continued expansion and increasing focus on localisation are expected to create opportunities for domestic machine-tool manufacturers. The significant share of imported machinery in Indias overall machine-tool consumption also provides an opportunity for capable domestic manufacturers to develop import-substitution products.

The Company shall continue to focus on research and development, technology enhancement, operational efficiency, customer-centric solutions and expansion of its market reach to participate in these emerging opportunities.

Human resources play a critical role in driving the Companys strategies, operations and long-term growth.

As on 31st March, 2026, the Company employed 264 employees.

The Company endeavours to provide its employees with a safe, conducive and productive working environment that encourages professional and personal development.

The Companys workforce comprises experienced, skilled and technically qualified personnel who contribute to manufacturing, research and development, sales and marketing, quality control, finance, administration and other critical functions.

The Company continues to undertake training and development initiatives to enhance the technical and managerial capabilities of its employees. The Company believes that continuous skill development, employee engagement and a positive organisational culture are essential for maintaining operational efficiency and supporting sustainable business growth.

The Company shall continue to focus on attracting, developing and retaining competent human resources while fostering a culture of performance, integrity, innovation and continuous improvement.

The Company has established adequate internal control systems commensurate with the size, nature and complexity of its operations.

The internal control framework is designed to ensure safeguarding of assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records, timely preparation of reliable financial information and compliance with applicable laws, regulations and internal policies.

Necessary checks and controls are in place to ensure that transactions are properly verified, appropriately authorised, correctly recorded and adequately reported.

The Internal Auditors of the Company conduct periodic audits of various functions and departments to evaluate the effectiveness of internal controls and submit their observations and recommendations to the Audit Committee.

The Audit Committee periodically reviews the adequacy and effectiveness of the Companys internal control systems and monitors implementation of corrective measures wherever considered necessary.

The management believes that the Company has maintained adequate internal financial controls over its business operations, statutory compliances and financial reporting.

The Company remains focused on strengthening its position in the metal-forming and machine-tool industry by leveraging its manufacturing capabilities, technological expertise, established customer relationships and experienced management team.

Indias continued emphasis on manufacturing, infrastructure development, localisation and technological advancement provides a favourable long-term environment for the capital-goods industry.

The Company shall continue to focus on sustainable and profitable growth through product innovation, technological advancement, operational efficiency, cost optimisation, market expansion and customer satisfaction.

While the external environment continues to be influenced by geopolitical developments, global trade uncertainties, commodity-price movements and technological disruptions, the Company remains committed to identifying emerging opportunities and adapting its strategies in line with changing market conditions.

Statements in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates, expectations, plans or predictions may constitute "forward-looking statements" within the meaning of applicable securities laws and regulations.

Actual results may differ materially from those expressed or implied in such forward-looking statements due to various risks and uncertainties, including economic conditions, demand and supply conditions, changes in government regulations and policies, taxation laws, raw-material prices, foreign-exchange fluctuations, competition, technological changes, geopolitical developments and other factors beyond the control of the Company.

The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements on the basis of subsequent developments, information or events, except as may be required under applicable laws.