Fabtech Cleanrooms Ltd Management Discussions

Global Economic Review

The global economy remained resilient during 2025-26 despite geopolitical tensions and evolving trade policies and volatility in commodity markets. Global growth moderated amid continued economic uncertainty, with the World Bank estimating growth at around 2.9% in 2025 and projecting 2.5% in 2026. Inflationary pressures and geopolitical risks remained key challenges, while technological investment, particularly in artificial intelligence supported economic activity. Businesses continued to focus on operational efficiency, adaptability and prudent risk management amid the evolving global environment.

Indias economy continued to demonstrate resilience during FY 2025-26, supported by strong domestic demand, robust infrastructure spending and sustained investment activity. Despite global geopolitical tensions, trade uncertainties and evolving economic conditions, India remained among the fastest-growing major economies.

With continued government focus on infrastructure development, capital expenditure, digitalisation and economic reforms, along with improving private investment and domestic consumption, India is well positioned to sustain its growth momentum and strengthen its position as a major global economy.

The Indian Cleanroom Technologies industry continued to demonstrate strong growth during FY 2025-26, supported by increasing investments in pharmaceutical manufacturing, biotechnology, healthcare, renewable energy, semiconductor electronics manufacturing, and other contamination-sensitive industries. Recent market estimates indicate that Indias growth, with projections suggesting it could reach approximately USD cleanroomtechnologymarketis poisedforsignificant

11 billion by 2030.

The Indian cleanroom technologies market comprises Equipment and Consumables segments. The equipment segment remains a key growth area, supported by new facility construction and capacity expansion across pharmaceuticals, biotechnology, healthcare, semiconductors, renewable energy and electronics.

Cleanroom equipment includes HVAC systems, HEPA filtrationsystems,laminarairflowunits, fan filter units (FFUs), air showers, mist showers, pass boxes, T-grid ceiling systems, dynamic dispensing booths (DDBs) and cleanroom enclosures.

Together, these solutions help maintain controlled levels of airborne particles, temperature, humidity, pressure differentials and airflow within critical manufacturing environments.

During FY 2025-26, demand was supported by pharmaceutical capacity expansion, increasingly stringent regulatory requirements and growing investments in semiconductor and electronics manufacturing. These developments have established cleanroom equipment as an important component of Indias advanced manufacturing infrastructure..

The Company is primarily engaged in the business of providing end to end turnkey solution for cleanrooms and the Company has identified it as its single segment. As the Company operates in a single business segment, the disclosure requirements under AS-17 Segment Reporting are not applicable to the company

The cleanroom technology market is expected to grow significantly in the coming years, driven by increasingly stringent quality and contamination-control requirements across pharmaceuticals, biotechnology, semiconductors, solar electronics, automotive, electric vehicles, data centres, food and beverages, and other precision-led industries. The rapid growth of these sectors, together with the increasing need for controlled manufacturing environments, is expected to strengthen demand for cleanroom solutions. Technological advancements, including energy-efficient HVAC systems, automation and intelligent monitoring, are also supporting market expansion. Additionally, evolving government regulations and standards relating to product quality, safety and environmental performance are encouraging wider adoption of cleanroom technologies and creating new opportunities for innovation.

Strengthening presence in high-growth sectors like semiconductors, renewable energy, and healthcare

Driving operational excellence

Enhancing stakeholder value through innovation and sustainability Please find out how we are saving lives at: www.fabtechcleanroom.com OPERATIONAL & FINANCIAL PERFORMANCE FY 2025-26

Standalone Operational Income: 14,186.13 lakhs (??1.92 % from 13,918.24 lakhs in FY 2024 25)

Consolidated Operational Income: 21,932.42 lakhs (??46.19% from 15,003.19 lakhs)

Standalone PAT: 905.73 lakhs (??24.78% from 1,204.18 lakhs)

Consolidated PAT: Rs. 1581.53 lakhs (??18.95% from, Rs. 1329.56 lakhs)

Standalone EPS: Basic and Diluted 7.35/-

Consolidated EPS: Basic and Diluted Rs. 12.84/-

Talent acquisition and retention

Continuous professional development through in-house and external training

Employee health, safety, and well-being via robust EHS programs

As of March 31, 2026, the company employed 143 at Head Office and 49 at factory across its operations, each contributing to the organizations collective success.

Our comprehensive training programs, conducted both internally and in collaboration with external partners, are designed to empower employees with the tools and capabilities needed to thrive in their respective roles.

In addition to career development, we are deeply committed to the health, safety, and overall well-being of our employees. We strictly adhere to environmental, health, quality, and safety standards, ensuring compliance with evolving regulatory frameworks.

Our dedicated Environment, Health, and Safety (EHS) function plays a critical role in:

Risk identification and mitigation

Accident prevention and workplace safety

Fostering a safety-first culture across the organization

The Company has established robust and effective internal control systems, supported by best practices suited to its size and scale of operations. These controls ensure that all assets are safeguarded, and all transactions are duly authorized, accurately recorded, and properly reported. The internal audit function reviews a broad range of operational areas and ensures compliance with applicable policies, procedures, and standards. During the year, no reportable material weaknesses in the design or operation of these controls were observed.

Key risks include safety, regulatory changes, credit exposure, supply chain disruptions, and commodity price fluctuations. These are mitigated through:

Comprehensive EHS protocols

Ongoing compliance monitoring

Diversified vendor and customer base

Strategic procurement and forward contracts

There has been no change in the accounting treatment for the preparation of the financial statements compared to the previous financial year. Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, and the relevant provisions of the Companies Act, 2013 ("the Act"), as applicable.

This report contains forward looking statements that address expectations and projections about the future, based on certain assumptions of future events. Companys actual results, performance or achievements may, thus, differ materially from those projected in any such forward looking statements.