EPW India Ltd Management Discussions

[Pursuant to Regulation 34 read with Para B of Schedule V of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015]

The Management at EPW India Limited (the Company) is pleased to present the Management Discussion and Analysis Report for the financial year ended 31st March 2026 which provides an insight of the Companys business, Industry Structure, Developments, Outlook, Opportunities, Concern Areas and Performance of the Company with respect to the operations and other relevant information.

EPW operates an end-to-end reverse supply chain for IT assets, comprising the procurement of used laptops, desktops, Chromebooks, monitors and related peripherals, their refurbishment to near-new condition through in-house quality control and testing processes, and their onward sale to end customers. The Company services this demand through two channels:

• Business-to-Business (B2B): supply of refurbished IT products in bulk to corporate and institutional buyers; and

• Direct-to-Consumer (D2C): retail sale of refurbished laptops, desktops, Chromebooks, monitors and accessories (keyboards, mice, etc.) through the Companys own stores and its website.

This model allows the Company to offer IT hardware at a significant price advantage relative to new equivalents, while extending the useful life of electronic assets.

INDUSTRY REVIEW

The Company is engaged in the business of refurbishing and reselling information technology electronics. EPW India Limited procures used IT assets, including laptops, desktops, Chromebooks, monitors and related peripherals, and refurbishes them to near-new condition through in-house quality-control and testing processes before reselling them through its B2B and D2C channels.

The refurbished electronics industry operates across a broad ecosystem comprising IT Asset Disposition (ITAD) providers, authorised refurbishers, recyclers and e-waste logistics companies. Devices ranging from laptops and desktops to tablets, monitors and accessories are restored through testing, repair and upgrades and subsequently resold at affordable prices, improving access to technology for students, small businesses, rural populations and other price-sensitive segments.

As digital adoption accelerates, particularly across developing economies, the refurbished electronics industry is playing an increasingly important role in expanding access to affordable devices. In India, a growing youth population, rising demand for online education and the broader push for digital inclusion have supported the development of the sector. Government- led initiatives such as Digital India and the E-Waste (Management) Rules, 2022 have further strengthened the policy and regulatory framework supporting responsible e-waste management, reuse and recycling.

Industry Overview - Worldwide

Globally, the refurbished electronics market continues to expand, with electronics reuse increasingly recognised as an important component of sustainable consumption and the circular economy. The global refurbished electronics market was valued at approximately US$48.29 billion in 2023 and is projected to reach approximately US$94.10 billion by 2030, representing a CAGR of around 10%. North America remains a significant market, supported by developed e-commerce infrastructure, consumer awareness and sustainability considerations. Europe has also witnessed strong adoption, supported by regulatory emphasis on sustainable practices and consumer protection. The Asia-Pacific region is experiencing significant growth, driven by its large population, increasing urbanisation, digital adoption and demand for affordable electronic devices.

Key Trends

Key trends in the global refurbished laptops and desktops market include:

• Sustainability and E-Waste Reduction: Refurbishment extends the functional life of used devices through repair, upgrading and testing, reducing demand for raw materials and manufacturing-related energy consumption while diverting e-waste from landfills and informal recycling channels. The lifecycle carbon footprint of a refurbished laptop or desktop is generally lower than that of a new device.

• Online Marketplaces and Distribution Channels: The growth of online marketplaces such as Amazon Renewed, eBay Refurbished and Back Market has widened access to refurbished devices by connecting buyers and sellers across geographies. Certified- refurbished listings, supported by structured inspection and testing processes, have also contributed to consumer confidence in product quality and reliability.

• Technological Advancements in Refurbishment: Advances in artificial intelligence and automation are improving the efficiency and consistency of refurbishment processes, enabling component-level condition assessment, more precise defect detection and standardised quality grading. Robotics-assisted cleaning, component replacement and software reinstallation are further supporting operational efficiency.

Industry Overview - India

Indias refurbished laptops and desktops industry is emerging as an important contributor to digital inclusion and sustainable development. By offering devices at significantly lower prices, the sector supports students, MSMEs, government institutions and individual consumers, particularly in price-sensitive Tier II and Tier III cities. Government initiatives such as Digital India, PM e-Vidya and Skill India are also supporting demand for affordable computing solutions.

Refurbished devices, typically priced 40-60% below new products, enable businesses and consumers to reduce capital expenditure while gaining access to functional computing equipment. The growth of e-commerce and certified re-commerce platforms has further improved consumer access, quality assurance, warranty support and after-sales service.

The sector also contributes to Indias circular economy by extending the useful life of electronic devices and reducing premature e-waste generation. With increasing digitalisation, demand for affordable technology and growing emphasis on Right to Repair and sustainable consumption, the Indian refurbished electronics market is expected to witness continued growth.

Key Trends in Indias E-Waste Management Market

Key trends in the Indian refurbished laptops and desktops market include:

• Adoption of Advanced Recycling Technologies: The sector is increasingly adopting automation, robotics and AI-based technologies for e-waste collection, sorting and material recovery. These technologies improve efficiency and support the safe handling of hazardous substances such as lead, mercury and cadmium.

• Government Initiatives and Policy Support: Government regulations, including the E- Waste (Management) Rules, 2022 and the Extended Producer Responsibility (EPR) framework, have strengthened accountability for the collection, recycling and environmentally responsible disposal of electronic waste. Increasing regulatory focus and public awareness are expected to support the growth of organised e-waste management and recycling.

With rising digital penetration, increasing emphasis on Right to Repair and strong demand from budget-conscious users, Indias refurbished laptops and desktops market is expected to witness sustained expansion. The sector is increasingly evolving from a cost-driven alternative into a strategic component of the circular economy, supporting inclusive digital access and resource sustainability.

OPPORTUNITIES AND THREATS

The Company operates in a market supported by structural and secular growth drivers, including the rising global and domestic adoption of refurbished electronics, underpinned by the twin imperatives of cost optimisation and sustainability. The increasing emphasis among corporates and institutions on IT Asset Disposition (ITAD), responsible asset lifecycle management and circular-economy practices is creating a growing addressable market for organised refurbishment and value recovery.

The Company believes that the evolving market landscape presents multiple avenues for scalable growth, including expansion into new geographies, entry into adjacent product categories and deeper penetration of B2B and enterprise customer segments. The progressive strengthening of e-waste regulations and increasing regulatory emphasis on formal collection, refurbishment, recycling and responsible disposal are also expected to favour organised, compliant and technologically enabled refurbishers.

At the same time, the Company operates in a highly competitive and price-sensitive market, with competition from organised refurbishers, OEM-backed programmes, online marketplaces and informal market participants. Fluctuations in the availability and procurement cost of used electronic assets, rapid technological obsolescence and changes in the pricing of new devices may impact margins and inventory valuations. The Company is also exposed to product quality, data security and evolving e-waste and environmental compliance requirements.

OUTLOOK

The outlook for the Indian refurbished electronics industry remains positive and structurally favourable, supported by rising demand for affordable computing devices, increasing adoption of circular-economy practices, growing corporate focus on IT Asset Disposition (ITAD), and heightened awareness of sustainable consumption. The increasing formalisation of the e-waste management ecosystem, coupled with evolving regulatory requirements, is expected to create a favourable environment for organised and compliant refurbishers.

The Company is focused on strengthening its sourcing and refurbishment capabilities, enhancing operational efficiencies, expanding its product portfolio and geographical presence, and deepening its engagement with B2B and enterprise customers. The Company intends to leverage technology-enabled refurbishment processes, robust quality-control mechanisms and efficient distribution channels to enhance product reliability, customer confidence and market reach. Continued emphasis on quality, data security, responsible e-waste management and customer satisfaction will remain central to the Companys strategy.

While the Company remains optimistic about its long-term growth prospects, its performance may be influenced by the availability and cost of used electronic assets, fluctuations in prices of new devices, technological obsolescence, consumer and enterprise spending patterns, competitive intensity, regulatory developments, logistics costs and broader economic conditions. Nevertheless, the Company believes it is well positioned to capitalise on emerging opportunities in the sector and create sustainable long-term value for its stakeholders.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

The Companys revenue is derived from a single reportable business segment, being the sale of refurbished IT products (laptops, desktops, Chromebooks, monitors and accessories) through its B2B and D2C channels. Accordingly, segment-wise reporting under the applicable Accounting Standards is not separately applicable to the Company.

RISKS AND CONCERNS

The Company operates in a competitive and evolving refurbished electronics industry, exposed to pricing pressure, changing customer preferences, technological obsolescence and competition from organised and unorganised market participants. The Company is also subject to risks relating to the availability and procurement cost of used electronic assets, product quality, inventory management, data security and evolving e-waste and environmental regulations.

The Company seeks to mitigate these risks through robust sourcing practices, stringent refurbishment and quality-control processes, efficient inventory management, technology adoption and regulatory compliance. The Company also intends to diversify its sourcing and customer base, strengthen its B2B and enterprise presence, and expand its product portfolio to support sustainable growth and enhance its competitive position.

FINANCIAL PERFORMANCE VIS-A-VIS OPERATIONAL PERFORMANCE

During the financial year under review, the Company continued to focus on strengthening its core business of procurement, refurbishment and sale of IT assets, with operations being undertaken through its B2B and D2C channels. The Companys financial performance for the year reflects the scale of its business operations, the level of demand for refurbished IT products and the Companys continued efforts towards building an organised and scalable refurbishment business.

Total Income

During the year under review, the Company continued to witness strong growth in its business operations. On a standalone basis, the Company achieved Revenue from Operations of Rs. 10,182.91 Lakhs during the financial year 2025-26, as compared to Rs. 5,187.54 Lakhs in the previous financial year, representing a significant year-on-year growth of 96.28%. On a consolidated basis, Revenue from Operations stood at Rs. 10,745.90 Lakhs, as compared to Rs. 5,330.91 Lakhs in the previous financial year, registering a growth of 101.58%. The Companys Total Income on a standalone basis increased by 96.56%, from Rs. 5,190.22 Lakhs in 2024-25 to Rs. 10,202.10 Lakhs in 2025-26. On a consolidated basis, Total Income increased by 101.57%, from Rs. 5,333.59 Lakhs to Rs. 10,750.48 Lakhs during the corresponding period.

This growth was driven by a combination of demand-side and company-specific factors. On the demand side, the refurbished IT products segment continued to see strong and growing consumer demand even as the market for new branded electronics products expanded in parallel, with new entrants and start-ups continuing to enter the IT sector and widening the overall addressable market for both new and refurbished devices. Advances in memory and storage technologies, together with the accelerating adoption of AI-enabled computing, have also sustained upgrade cycles and replacement demand, which in turn support the supply pipeline of used IT assets available for refurbishment.

On the Company-specific side, the extension of warranty coverage - from the previously offered 6-month warranty to a 1-year warranty to 3 years for corporate customers, together with the introduction of on-site warranty support, strengthened customer confidence and supported higher-value B2B and corporate order wins. Taken together, the increase in revenue was primarily attributable to the increase in the volume of refurbished IT products sold, expansion of production and refurbishment operations, a wider PAN-India supply and distribution network, expansion of customer relationships, product mix and sustained demand across the B2B and D2C channels, supported by the Companys continued efforts to strengthen its market presence, operations, and customer and geographical reach.

Share Capital

The paid-up equity share capital of the Company as on 31st March, 2026 stood at Rs. 5,73,98,000/- (Rupees Five Crores Seventy-Three Lakh Ninety-Eight Thousand Only), comprising 1,14,79,600 (One Crore Fourteen Lakh Seventy-Nine Thousand and Six Hundred) fully paid-up equity shares of Rs. 5/- (Rupees Five Only) each.

During the financial year under review, the Company undertook significant capitalisation and fund-raising initiatives. The Company allotted 80,00,000 (Eighty Lakh) equity shares of Rs. 5/- each as fully paid-up bonus shares to the eligible members of the Company in the ratio of 40:1, i.e., 40 equity shares for every 1 equity share held by the members as on 01st September, 2025.

Further, during the year under review, the Company successfully entered the capital markets through an Initial Public Offering (IPO) comprising a Fresh Issue of 32,79,600 equity shares of Rs. 5/- each at a premium of Rs. 92/- per equity share. Pursuant to the IPO, the equity shares of the Company were listed on the NSE Emerge SME Platform of the National Stock Exchange of India Limited.

The aforesaid capitalisation and fund-raising initiatives have strengthened the Companys capital base and provided an enhanced platform for pursuing its growth strategy, expanding its operations and strengthening its presence in the organised refurbished electronics market.

Profitability

The Company recorded a Profit Before Tax (PBT) of Rs. 1,422.80 Lakhs on a standalone basis during the financial year 2025-26, as compared to Rs. 566.64 Lakhs in the previous financial year, representing a significant increase of 151.04%. On a consolidated basis, Profit Before Tax stood at Rs. 1,452.43 Lakhs, as compared to Rs. 592.15 Lakhs in the previous financial year, representing a growth of 145.28%.

The Company also recorded a Profit After Tax (PAT) of Rs. 1,006.61 Lakhs on a standalone basis during the year under review, as compared to Rs. 404.45 Lakhs in the previous financial year, reflecting an increase of 148.88%. On a consolidated basis, PAT increased to Rs. 1,031.25 Lakhs, as compared to Rs. 424.53 Lakhs in the previous financial year, registering a growth of 142.93%

The sharp improvement in profitability was largely a function of the operating leverage generated by the near-doubling of revenue described above: with refurbishment, warehousing and distribution infrastructure already in place, a significant portion of the incremental sales converted directly into profit, as fixed and semi-fixed overheads were spread across a substantially larger revenue base. This was supported by continued discipline in the procurement cost of used IT assets, a favourable product mix skewed towards higher-margin corporate and B2B orders following the extended warranty offering, and efficiencies gained in refurbishment, testing and inventory management as volumes scaled. The profitability of the Company remains influenced by factors including procurement costs of used IT assets, refurbishment and testing costs, product mix, selling prices, inventory management, logistics and other operating expenses, and the Company continues to focus on improving operational efficiencies, optimising procurement and refurbishment processes and strengthening its sales channels with a view to improving margins and overall profitability.

Earnings Per Share (EPS)

The Earnings Per Share (EPS) of the Company for the financial year 2025-26 stood at Rs. 11.11 per equity share, based on the face value of Rs. 5/- (Rupees Five Only) per equity share. The significant improvement in profitability during the year, coupled with the Companys successful transition to the listed platform and continued expansion across its B2B and D2C channels, provides a strong foundation for sustaining profitable growth and enhancing long-term value for its shareholders.

Overall, the Company continues to focus on scaling its refurbishment operations, strengthening its B2B and D2C channels, improving inventory and procurement efficiencies and enhancing operational profitability. The Management remains committed to pursuing disciplined growth while maintaining appropriate focus on quality, customer satisfaction, compliance and sustainable business practices.

Detail of Significant Changes (i.e. change of 25% or more as compared to the immediately previous financial year) in Key Financial Ratios

The Companys key financial ratios (on a standalone basis) as at 31st March, 2026 as compared to the previous financial year, along with explanations for changes of 25% or more, are set out below:

S . No	Particulars	Numerator	Denominator	As at 31 March 2026 (Current Period)	As at 31 March 2025 (Previous Period)	% Variance	Variance Remark
1	Current ratio (in times)	Current assets	Current liabilities	2.32	1.19	48.66%	Variance represents increase in receivables and Inventory
2	Debt-equity ratio (in times)	Total debt	Share holders equity	0.24	2.65	-999.76%	Significant decrease due to issue of public shares
3	Debt service coverage ratio (in times) *	Earning available for Debt Service (1)	Debt service (2)	14.26	1.22	1070.31%	Significant increase due to increase in profit during the year
4	Return on equity ratio (in % )	Net Profits after taxes	Average Shareholders Equity	21.19%	142.39%	-572.04%	The variation is due to increase in the paid-up share capital of the Company via the issue of 80 Lakhs Bonus Shares and Initial Public Offering of 32.79 Lakhs Equity Shares
5	Inventory turnover ratio (in times )	Cost of goods sold	Average inventory	4.67	4.76	-2.02%	No significant variance during the year
6	Trade receivables turnover ratio (in times )	Revenue from operations	Average trade receivable	4.34	8.77	-101.90%	Decline caused by increase in both Revenue and receivables
7	Trade payables turnover ratio (in times)	Total Purchases	Average trade payables	9.52	11.20	14.97%	Increase is due to increase in Overall trade payables for the company
8	Net capital turnover ratio (in times)	Revenue from operations	Average Working capital	2.61	21.68	-730.26%	Majorly due to increase in current assets i.e. receivables and inventory
9	Net profit ratio (in %)	Net profit	Revenue from operations	9.89%	8.07%	18.40%	Increase due to higher profit during the year
10	Return on capital employed (in %)	Earnings before interest and taxes	Capital employed (3)	29.56%	120.26%	-306.82%	Decline caused by issue of public shares
11	Return on investment (in %)	Not Applicable	Not Applicable	-	-	-	-

*Debt service = Interest and Lease Payments + Principal Repayments made during the year.

The significant variances noted above (i.e. change of 25% or more) are primarily attributable to the capitalisation and fund-raising initiatives undertaken by the Company during the year - namely, the issue of bonus shares and the Fresh Issue of equity shares pursuant to the Companys Initial Public Offering - as well as the substantial increase in revenue and profitability during the year, as explained above. The Companys underlying operating ratios, such as inventory turnover, remained broadly stable, indicating that the variances are largely capital- structure and profit-driven rather than reflective of any deterioration in operational performance.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company maintains internal control systems commensurate with the size and nature of its operations, covering procurement of used IT assets, inventory management, refurbishment and quality-control processes, sales across its B2B and D2C channels, and related accounting and reporting functions. These systems are designed to ensure the accuracy and reliability of financial records, safeguard the Companys assets, and ensure compliance with applicable laws and internal policies. The Board of Directors and the Audit Committee periodically review the adequacy and effectiveness of these controls.

HUMAN RESOURCE

The Companys operations, spanning sourcing, refurbishment, quality testing, warehousing, and B2B/D2C sales, are supported by personnel engaged across procurement, technical/refurbishment, retail, logistics, and administrative and accounts functions. As the Companys operations are labour-intensive, particularly in the refurbishment and warehousing functions, the Company continues to focus on workforce training in quality-control and testing processes, and on maintaining harmonious employee relations.

The Company recognises its employees as a key contributor to its growth and continues to invest in their development. Regular training programmes are provided to employees across functions, including on refurbishment techniques, quality-control and testing protocols, product handling and data-security practices, with the objective of enhancing technical skills, improving productivity and ensuring consistent service and product quality across the Companys B2B and D2C channels.

As of the date of this report, the Company employed 89 permanent employees across its operations, in addition to personnel engaged on a contractual basis for refurbishment and warehousing activities during periods of peak demand. The Company has not experienced any material labour disputes or unionisation to date.

FUTURE PROSPECTS AND STRATEGY

The Company intends to consolidate its position in the organised refurbished-electronics segment by expanding its B2B relationships with enterprise and institutional buyers, widening its D2C footprint through its own stores and website, and strengthening its sourcing network to mitigate risks arising from the absence of long-term supply contracts and regulatory restrictions on the import of used IT equipment. The Company will also continue to invest in refurbishment quality, testing infrastructure, and warranty support to build customer trust and brand recognition. Consistent with the broader objects contained in its Memorandum of Association, the Company may, as its business evolves, selectively explore complementary IT-enabled products and services, subject to Board approval and applicable regulatory requirements.

Cautionary Statement

The statement and views expressed by the management in the above-said report are on the basis of best judgment, but the actual results might differ from whatever stated in the report. The Company takes no responsibility for any consequence of decisions made based on such statements and holds no obligation to update these in future. Readers are cautioned not to place undue reliance on these forward-looking statements.

	On behalf of the Board of Directors
	For EPW India Limited
	(Formerly known as EPW India Private Limited)
	Sd/-	Sd/-
	Mohd Fasi Uddin	Yousuf Uddin
Place: Secunderabad	Whole-Time Director	Chairman & Managing Director
Date: 14th August, 2026	DIN:09149104	DIN:08423158