Felix Industries Ltd Management Discussions

MACROECONOMIC OVERVIEW

1.1 GLOBAL MACROECONOMIC OVERVIEW

The global economy entered FY2025 26, navigating an environment of moderate resilience amid persistent structural headwinds. According to the IMFs April 2026 World Economic Outlook (Global Economy in the Shadow of War), global GDP growth is projected to slow to 3.1% in 2026 and recover to 3.2% in 2027

Global headline inflation is projected to experience a temporary uptick in 2026 following a period of moderation before resuming its downward trajectory in 2027. The IMF projects global inflation at 4.4% in 2026, with Brent crude assumed at approximately USD

82 per barrel under the reference scenario. Advanced economies are converging towards their central bank inflation targets, while inflationary pressures in several emerging markets continue to persist, largely reflecting domestic supply constraints and currency depreciation pressures. In India, consumer price inflation remained broadly contained for much of FY2025 26, although price pressures strengthened towards the close of the

Global headline inflation is projected to rise modestly in 2026 before resuming its decline in 2027. Slowdown in growth and increase in inflation are expected to be particularly pronounced in emerging market and developing economies, following a recent growth pace of about 3.4% during 2024 25.

fiscal year, with the Consumer Price Index (CPI) rising to 3.93% in May 2026. Following cumulative policy rate reductions earlier in the monetary easing cycle, the Reserve Bank of India has since maintained a pause in its monetary policy stance, reflecting a calibrated and data-driven approach to balancing growth support with evolving inflation risks. The relatively stable monetary environment, together with sustained public infrastructure spending and resilient domestic demand, continued to provide a supportive backdrop for investment across environmental infrastructure, water and wastewater management and resource recovery sectors.

ADVANCED ECONOMIES	1.9	1.8	1.7
EMERGING MARKET AND DEVELOPING ECONOMIES	4.4	3.9	4.2

Advanced economies as a group are projected to expand by 1.8% in 2026, while Emerging Market and Developing Economies (EMDEs) are expected to grow by 3.9% in 2026, revised down from 4.2%. This revision reflects the combined impact of elevated trade protectionism, geopolitical fragmentation, energy market volatility and the delayed transmission of prior monetary policy tightening across major economies. Despite these global headwinds, India continues to maintain a relative macroeconomic advantage, positioning itself among the fastest-growing major economies globally. Concurrently, the global transition towards ESG compliance, circular economy principles andcarbonneutralitycommitmentscontinuestoexpand the addressable market for environmental technology and sustainability solutions, creating a favourable long-term structural tailwind for Felix Industries Limited.

Global Foreign Direct Investment ("FDI") flows remained uneven. While emerging markets with favorable structural stories - India, Vietnam, Mexico and parts of Southeast Asia - continued to attract significant capital, FDI to commodity-exporting economies and those

The Middle East conflict introduced significant near-term volatility to energy markets. Brent crude is assumed at approximately USD 94 per barrel in 2026 under the IMFs reference scenario, well above prior-year levels. However, the disruption also accelerated the strategic imperative for energy security through renewables diversification. Several major economies announced expanded renewable energy targets or fast-tracked transition programs as a direct consequence. From a longer-term perspective, global commitments to decarbonization remained broadly intact. The Paris Agreement framework continued to anchor national climate policies and Nationally Determined Contributions were progressively tightening. Sectors with high greenhouse gas footprints - fossil with direct conflict exposure declined. India emerged as a net beneficiary of supply chain diversification, with greenfield FDI in electronics, pharmaceuticals, renewable energy and environmental infrastructure remaining robust.

fuel production, heavy manufacturing and waste management - faced mounting regulatory and investor pressure to demonstrate credible transition pathways. This structural shift is a key long-term driver for companies in the environmental services and circular economy space, including Felix Industries. The global environmental services industry benefited from this confluence of climate urgency, regulatory tightening and resource scarcity. Total global waste management market revenues were estimated at approximately USD 1.37 trillion in 2026, growing at a CAGR of 6.66, while the global water and wastewater treatment market was valued at approximately USD 400.32 billion, expanding at 7.5% annually.

Source: IMF World Economic Outlook, April 2026 Global Economy in the Shadow of War; IMF WEO Update, January 2026; World Bank Global Economic Prospects, June 2026; MoSPI Provisional Estimates, June 2026; Precedence Research (Waste Management Market, 2025); Fortune Business Insights (Water & Wastewater Treatment Market, 2025-26)

ECONOMY / REGION	GDP GROWTH 2024	GDP GROWTH 2025E	HEADLINE INFLATION 2025E
GLOBAL	3.3%	3.2%	4.2%
ADVANCED ECONOMIES	1.7%	1.5%	2.5 3.3%
UNITED STATES	2.8%	2.0%	2.7%
EMERGING MARKETS &	4.3%	>4.0%	5.5%
DEV.
INDIA	7.1%	7.7%	2.1%

Indias GDP growth figures are for fiscal years (April March), while all other economies are reported on a calendar-year basis (January December). Comparisons should therefore be interpreted accordingly.

1.2 INDIAN ECONOMIC OVERVIEW

India sustained its position as the worlds fastest-growing major economy during FY2025 26. MoSPIs Provisional Estimates (June 2026) confirmed real GDP expansion of 7.7%, accelerating from 7.1% in FY2024 25 and surpassing both the RBIs earlier projection of 7.6% and the governments Second Advance Estimate. The Q4 FY26 print of 7.8% reflects sustained domestic consumption momentum and continued government capital expenditure. Gross Fixed Capital Formation grew at 8.2%, up from 6.4% in FY24 25, confirming that both public infrastructure investment and private capex are firming meaningfully.

Indias inflation remained well contained during FY 2025 26, supported by easing food prices, stable domestic supply conditions and moderating global commodity prices. Retail CPI inflation moderated to

3.93% in May 2026, remaining below the Reserve Bank of Indias medium-term target of 4%, reflecting a resilient macroeconomic environment. In view of the benign inflation outlook and evolving global uncertainties, the Reserve Bank of India maintained the policy repo rate at 5.25% at its June 2026 Monetary Policy Committee meeting, marking the third consecutive policy pause and signaling a balanced approach towards supporting

CAPITAL EXPENDITURE AND POLICY DIRECTION

The Union Budget 2025 26 allocated/Earmarked in 2025-26 a record 11.21 lakh crore for capital expenditure approximately 3.1% of GDP sustaining the governments multi-year infrastructure-led growth strategy. Of direct relevance to the environmental services sector, allocations included 99,502 crore to the Ministry of Jal Shakti (of which 74,226 crore was directed to the Department of Drinking Water and Sanitation), enhanced funding under AMRUT 2.0 for urban sewerage transformation and expanded support for solid waste management under Swachh Bharat Mission 2.0. Duty rationalisation on non-ferrous metal scrap and an extension of PLI incentives to environmental technology clusters further reinforced the policy environment for organised environmental services operators. The key government programmes driving investment in water, sanitation and waste management infrastructure are detailed in Section 1.4.

Source: Press Information Bureau, Highlights of Union Budget 2025-26, February 1, 2025

Indias urbanisation trajectory remains a powerful secular driver: over 600 million people are expected to reside in urban areas by 2036, intensifying pressures on water supply, solid waste management and industrial effluent control. NITI Aayogs Composite Water Management

Index has consistently highlighted that several Indian cities are approaching severe water stress thresholds, making sustainable water management an economic necessity as much as a regulatory requirement. The

National Green Hydrogen Mission (target: 5 MMT by

2030) and the National Water Policy frameworks are drawing private sector participation through PPP and Hybrid Annuity Models across hundreds of water and wastewater treatment projects-creating a sustained, policy-backed tendering pipeline for compliant environmental services providers.

Source: MoSPI Provisional Estimates, June 2026; RBI Monetary Policy Statements FY2026; Union Budget 2025 26; Reserve Bank of India Annual Report FY2025 26; PIB, Government of India.

1.3 INDUSTRY STRUCTURE AND DEVELOPMENTS

1.3.1 SECTOR POSITIONING & STRUCTURE

Indias environmental services and eco-technology sector-encompassing water and wastewater management, solid waste management, waste oil management, metal recycling, desalination - is undergoing a structural transformation driven by intersecting forces of regulatory tightening, industrialisation, urbanisation, water scarcity and ESG-linked capital allocation. The following sub-sections analyses each of Felix Industries principal service verticals: market size, key demand drivers, regulatory

1.3.2 WATER AND WASTEWATER TREATMENT MARKET

The global water and wastewater treatment market was valued at approximately USD 369.6 billion in 2025 and is projected to grow at a CAGR of 6.5%, reaching USD 652 billion by 2034, supported by rising demand for clean water and advanced treatment solutions. Growing pressure on freshwater resources, coupled with increasing regulatory emphasis on water conservation, wastewater recycling and reuse, continues to drive investments across the global water treatment ecosystem.

Nearly 71% of Earths surface is covered by water, yet approximately 97.5% of this is saline and unsuitable for direct consumption. Of the remaining freshwater, most is locked away in glaciers, ice caps and deep groundwater, leaving less than 1% of the planets total water readily accessible for human use. This scarcity is compounded by rising demand: as of 2024, 2.2 billion people were still without safely managed drinking water, while UN data shows global water stress remained steady at 18% in 2022, though regional disparities are stark, with Central and Southern Asia facing high stress and Northern Africa in critical stress. Rising industrialization, urbanization, changing consumption patterns and the expansion of water-intensive digital infrastructure are further widening the gap between water demand and freshwater availability, making water recycling and reuse increasingly critical.

Source: https://unstats.un.org/sdgs/report/2025/goal-06/

India represents one of the most compelling growth markets within the global water and wastewater treatment industry. The Indian wastewater treatment market was valued at approximately USD 10.4 billion in FY2025-26 and is expected to reach USD 19.4 billion by

The growth opportunity is underpinned by a significant infrastructure deficit and increasing water stress. India supports approximately 18% of the worlds population while possessing only 4% of global freshwater resources. Per capita water availability has declined from approximately 5,177 cubic metres in 1951 to nearly 1,500 cubic metres in 2025, below the internationally recognised water scarcity threshold of 1,700 cubic metres. India generates approximately 72,368 MLD of sewage annually; however, only about 28% is currently treated before discharge, leaving more than 52,000 MLD entering rivers, groundwater systems and water bodies untreated. Furthermore, NITI Aayog has warned that 21 Indian cities face significant groundwater

Within this evolving landscape, Felix Industries operates as an integrated environmental infrastructure company, providing end-to-end water and wastewater management solutions across engineering, procurement and construction (EPC); BOOT projects; and long-term operation & maintenance contracts. The company has established an installed wastewater restoration capacity of 17+ MLD, serving industries including textiles, chemicals, pharmaceuticals, food & beverages, steel and oil & gas through effluent treatment plants (ETPs), sewage treatment plants (STPs), common effluent treatment plants (CETPs), reverse osmosis systems (RO) and advanced Zero Liquid Discharge (ZLD) facilities.

2034, growing at a CAGR of 7.0% during 2026-2034.

Source: https://globalriskcommunity.com/market_ research/india-wastewater-treatment-market-2026-2034-size-share-key-trends

depletion risks by 2030. This structural imbalance, coupled with stricter regulatory enforcement under the Liquid Waste Management Rules and increasing industrial water reuse mandates, continues to create sustained demand for industrial wastewater treatment, recycling and ZLD solutions.

Source: Precedence Research, 2025; Fortune Business Insights, 2025; IMARC Group, 2026; CPCB, National Inventory of Sewage Treatment Plants, 2021; Ministry of Jal Shakti, Government of India; NITI Aayog, Composite Water Management Index, 2018; UN-Water; MoSPI Provisional Estimates, June 2026, Central Water Commission, Reassessment of Water Availability in India, 2019; PIB Press Release No. 2002726

Felixs integrated execution capability enables it to participate across the entire project lifecycle-from design and engineering to commissioning and long-term operations-creating recurring revenue streams alongside project execution. During the year, the company strengthened its market presence through significant project wins, including a 140.08 crore BOOT contract for an integrated ZLD, water treatment and sewage treatment facility and a 32.65 crore EPC order for a 2 MLD ZLD CETP, reinforcing its positioning in one of the fastest-growing segments of Indias environmental infrastructure sector.

1.3.3 ZERO LIQUID DISCHARGE (ZLD) MARKET

Zero Liquid Discharge (ZLD) represents the highest standard of industrial wastewater management, enabling near-complete recovery and reuse of water. As water scarcity intensifies and environmental regulations tighten globally, ZLD is rapidly becoming a core requirement for sustainable industrial operations.

The global ZLD systems market was valued at approximately USD 8.42 billion in 2025 and is projected to reach USD 12.4 billion by 2030, growing at a CAGR of

8.0%. This growth is driven by rising industrial activity, increasing pressure on water resources and stricter discharge norms across key economies.

In India, Zero Liquid Discharge (ZLD) has evolved from a sustainability initiative to a regulatory imperative. The domestic ZLD market was valued at USD 1.14 billion in 2024 and is projected to reach USD 1.84 billion by 2030, reflecting a CAGR of 8.1%. The ZLD market in India is driven by stricter regulatory enforcement and rising industrial demand. Large water-consuming industries are required to adopt advanced treatment systems, while export-oriented sectors are implementing ZLD to meet global sustainability and OCEMS standards.

The energy and power sector remains the largest end-use segment. South India leads the market, while North India is the fastest-growing region due to rapid industrial expansion. CPCB mandates across key sectors continue to drive sustained adoption.

The Central Pollution Control Board (CPCB) has mandated the implementation of ZLD systems across several high-pollution sectors, including textile dyeing units generating more than 25 cubic meters of effluent per day. Similar requirements extend to distilleries, tanneries, sugar mills and chemical, food & beverage and pharmaceutical manufacturers operating in critically polluted regions. In addition, industries located within a 10 km radius of major river systems are also required to comply, collectively impacting over 4,200 industrial units across the country.

Despite favourable demand fundamentals, ZLD remains a technically intensive segment characterised by high capital expenditure, complex engineering requirements and significant operational expertise. Project success depends on accurate process design, optimisation of energy consumption, integration of multiple treatment technologies and long-term operational reliability. Consequently, the market presents relatively high entry barriers, favoring companies with proven engineering capabilities, execution experience and lifecycle service expertise.

Felix Industries has established a strong presence within this specialized segment by delivering integrated

ZLD solutions across engineering, procurement, construction and long-term operation & maintenance models. The companys expertise spans industrial effluent treatment, membrane-based separation technologies, evaporation systems and customised

ZLD configurations designed for complex wastewater streams across diverse industries. Its ability to execute complete projects, from process design and system integration to commissioning and plant operations, positions the company as an integrated solutions provider rather than a standalone equipment supplier.

Driver	Detail
CPCB Mandate	Mandatory ZLD for textiles, tanneries, distilleries, pharma; non-compliance leads
	to closure
Court Orders	NGT and High Court orders enforcing ZLD across the Ganga, Yamuna and Cauvery basins
National Water Policy 2012	Thermal power plants in water-scarce zones must recycle 90% of process water by 2030
ESG / Investor Pressure	Listed companies increasingly required to disclose water consumption; ZLD adoption improves ESG scores
Water Scarcity	Rising cost and uncertainty of freshwater supply; ZLD creates internal water self- sufficiency

Source: CPCB Guidelines on ZLD; National Water Policy 2017, Ministry of Jal Shakti; Mordor Intelligence ZLD Report 2026.

1.3.4 SOLID WASTE MANAGEMENT MARKET

Rapid urbanisation, industrialisation and tightening environmental regulations are driving a structural transformation in the global solid and hazardous waste management industry. The global waste management market - encompassing solid waste collection, treatment, recycling and disposal - was valued at approximately USD 1.28 trillion in 2025 and is projected predicted to increase from USD 1.37 trillion in 2026 to approximately to reach USD 2.44 trillion by 2035 at a CAGR of approximately 6.7%.

Source: https://www.precedenceresearch.com/waste management-market

Urban populations globally generate over 2 billion metric tonnes of solid waste annually and this figure is projected to rise to 3.4 billion metric tonnes by 2050.

The collection gap in developing nations-where a significant portion of waste goes uncollected and ends up in open dumps, waterways, or informal burn sites-represents both a public health crisis and a long-term commercial opportunity for organized waste management operators.

India is home to one of the worlds most critical solid waste management challenges. The country generates over 62 million tonnes of municipal solid waste (MSW) annually. Of this, only approximately 43 million tonnes are collected and just 12 million tonnes receive treatment before disposal-leaving 31 million tonnes directly dumped in unscientific landfills, open grounds, or water bodies. Urban waste generation per capita in

India is projected to rise to 0.7 kg per person per day by FY2026 and total MSW generation is expected to surge to 165 million tonnes by 2030. The India waste management market is projected to grow from USD 14.29 billion in 2026 to USD 18.94 billion by 2031, registering a CAGR of approximately 5.8%, reflecting the enormous scope of the unaddressed waste infrastructure deficit.

Source: https://www.mordorintelligence.com/industry-reports/india-waste-management-market

Swachh Bharat Mission 2.0, supported by Viability Gap Funding from Urban Local Bodies, is driving adoption of advanced thermochemical technologies-incineration, pyrolysis and gasification-at newly tendered facilities. The Ministry of New and Renewable Energy has set a target of 1,365 MW of installed capacity from Waste-to-Energy by 2032. Biomethanation plants converting organic waste to biogas are being actively financed under the GOBAR-Dhan scheme, with over 5,000 biogas plants commissioned across India.

Within this evolving landscape, Felix Industries provides integrated solid and hazardous waste management solutions through a dedicated business vertical with an installed treatment capacity of 50 TPD. The Companys offerings include oily sludge treatment, industrial solid waste processing, scientific landfill operations and resource recovery solutions designed to maximize value extraction from waste streams. Looking ahead,

Felix is exploring opportunities in waste-to-energy and energy-positive waste infrastructure as part of its long-term sustainability roadmap. As an initial step in this direction, the company is commissioning a 175 kW waste-to-energy facility primarily as an R&D initiative to evaluate technological viability and future commercial applications in the sector.

The Liquid Waste Rules 2024 mandate scientific treatment of all non-recyclable hazardous waste, closing a critical compliance gap in Indias industrial ecosystem. Felixs established CPCB-compliant disposal credentials and recurring O&M contracts position it as a preferred partner for industries requiring reliable hazardous waste management under tightening regulatory scrutiny.

Source: Precedence Research, 2025; Mordor Intelligence, 2025; MoHUA, Swachh Bharat Mission 2.0; MNRE, Government of India; World Bank, What a Waste 2.0, 2018.

1.3.5 WASTE OIL RECYCLING MARKET

The global waste oil recycling market, covering used lubricating oils, engine oils, hydraulic fluids, transformer oils and cooking oils, was valued at approximately USD 5239.6 million in 2026 and is projected to reach USD 11722.6 million by 2035, growing at a CAGR of approximately 9.36%. The industry is witnessing robust growth, driven by increasing environmental awareness, stringent waste management regulations and the accelerating adoption of circular economy principles across industrial ecosystems.

From a segment perspective, lubricating oil remains the largest category, accounting for more than 50% of global waste oil processing volumes. The automotive sector is the largest source of waste oil generation, contributing over 60% of collected waste oils globally, while industrial applications account for a significant share of recycled lubricant consumption. The increasing utilization of recycled oils across manufacturing, mining, power generation and heavy engineering industries is expected to further strengthen market demand over the coming years.

Source: https://www.globalgrowthinsights.com/market-reports/waste-oil-recycling-market-110225Rsutm_source Waste Oil Recycling Market Size & Shares, 2035

THE MIDDLE EAST OPPORTUNITY - OMAN AND THE GCC

The Middle East market for waste oil recycling and allied sustainable industrial solutions continues to demonstrate steady growth, supported by increasing regulatory emphasis on environmental compliance, resource efficiency and circular economy practices.

The GCC Waste Management Market size in 2026 is estimated at USD 73.23 billion, growing from 2025 value of USD 68.25 billion with 2031 projections showing USD 104.06 billion, growing at 7.29% CAGR, reflecting a positive growth trajectory driven by industrial expansion and sustainability initiatives.

Saudi Arabia remains a key contributor to regional growth, supported by the strategic objectives outlined under Vision 2030. The sector is expected to witness growth at an estimated CAGR of approximately

8%, driven by ongoing industrial diversification, infrastructure development and increasing focus on environmental sustainability.

The United Arab Emirates, particularly Sharjah, has emerged as a prominent hub for sustainability-led initiatives, with significant advancements in waste management and recycling infrastructure. The region is estimated to generate over 400,000 gallons annually in recyclable waste streams, highlighting substantial potential for waste oil recovery and reuse.

The Middle East and specifically Oman within the GCC, represents a strategically important and rapidly evolving market for waste oil recycling. Oman generates approximately 2.6 million tonnes of solid and industrial waste annually. The countrys national waste management entity, Beah (Oman Environmental

Services Holding Company), has articulated a comprehensive circular economy strategy, with an official launch in March 2025, targeting a 60% diversion of waste from landfills by 2030 and 80% by 2040. The Omani government has allocated approximately OMR 528 million (USD 1.5 billion) for circular economy projects.

Oman Vision 2040 identifies environmental sustainability as one of its four core pillars, with explicit targets around waste minimization, resource efficiency and the elimination of unscientific waste disposal.

Omans oil and gas sector - home to Shell Oman and Oman LNG, among others - generates substantial quantities of used industrial and transformer oils from its drilling, refining and power generation activities.

The Government, in collaboration with key industry stakeholders, is actively promoting the adoption of clean technologies and emission reduction measures, aligned with global decarbonization objectives. A progressive shift towards low-sulfur fuels and ultra-low emission standards is underway, in line with evolving international regulatory frameworks. Additionally, refinery operations are increasingly integrating renewable energy sources, including solar and wind, to reduce carbon intensity and improve energy efficiency.

Furthermore, the adoption of advanced digital monitoring systems for carbon tracking and compliance reporting is gaining momentum, enabling enhanced transparency, regulatory adherence and data-driven decision-making.

OMAN SUSTAINABILITY INITIATIVES

Initiative	Details
Oman Vision 2040 - Sustainable Environment	Core pillar focusing on resilient ecosystems, waste minimisation and resource efficiency; 30% renewables by 2030
Beah Circular Economy Strategy	Launched March 2025; targets 60% landfill diversion by 2030, 80% by 2040; OMR 528 mn (USD 1.5 bn) allocated
Barka Waste-to-Energy Plant	First national WtE plant launching in 2028; biogas and
	recycling programmes rolling out in phases from 2025
National Circular Economy Roadmap	Oman joined the Global Stocktake of National Circular Economy Roadmaps in May 2026; framework in development
Net Zero Target	Oman committed to net-zero carbon emissions by 2050; net-zero socioeconomic centre established for implementation

Source: Mordor Intelligence; GlobeNewswire; Arab Urban Development Institute; Waste & Recycling Magazine; Omanet; Oman Vision 2040; Oman Observer; Zawya; Utility Business MENA; Oman Ministry of Energy & Minerals; Zawya Net Zero Centre

Through its Waste Oil Management vertical, Felix converts used/waste lubricating oils into re-refined base oils, blended fuels and value-added by-products through a multi-stage process involving collection and pre-treatment, vacuum distillation, catalytic cracking and finishing treatment. The Oman subsidiarys installed capacity stands at 40 TPD (tones per day), with an active target to scale it to 100 TPD by

FY2026-27.

The Oman subsidiary-Felix Industries LLC, in which the company holds a 76.50% stake - commenced operations in 2023 and serves the Gulfs oil and gas sector, including the OQ8 Duqm Refinery and other industrial clients operating under Omans stringent environmental regulations. This subsidiary secured a significant semi-government waste management contract worth OMR 1.8 million (approximately 45 crore) for end-to-end waste management at Qalhat and Sur facilities in Oman, providing minimum guaranteed revenue over a 5-year tenure with dual revenue streams from waste management services and recycled materials sales. In May 2026, a further 3-year Oman hazardous waste contract worth OMR 2.6 million (approximately 60 crore) was won, reinforcing the international growth trajectory.

1.3.6 METAL RECYCLING

Metal recycling sits at the intersection of industrial necessity and environmental imperative. As primary metal production becomes costlier, more energy-intensive and subject to greater environmental scrutiny - accounting for approximately 7 9% of global CO emissions in the case of steelmaking alone - secondary metal production from recycled scrap offers a compelling combination of cost efficiency, supply security and sustainability. Recycling each tonnetons of steel scrap saves approximately 1.1 tonnestones of iron ore, 630 kilograms of coking coal and 55 kilograms of limestone, while consuming 60 75% less energy and generating 58% fewer greenhouse gas emissions than primary production from ore. For aluminum, the energy saving is even more dramatic-secondary production requires just 5% of the energy needed for primary smelting.

The global metal recycling market size was valued at

USD 263.0 bn in 2025 and it is expected to reach USD 368.5 bn by 2034, exhibiting a growth rate (CAGR) of 3.70% from 2026 to 2034. The market is large, structurally essential to the global steel, aluminum and copper industries and increasingly shaped by environmental policy mandates, the transition to electric arc furnace (EAF) steelmaking and the demand for low-carbon materials in construction, automotive and electronics applications.

Market Size in 2025	USD 263.0 Billion
Market Forecast in 2034	USD 368.5 Billion
Market Growth Rate (2026-2034)	3.70%

Source: https://www.precedenceresearch.com/waste management-market

Ferrous metals, principally steel and iron, dominate the recycling market by volume, accounting for approximately 71 75% of total scrap metal processed globally. Aluminum accounts for approximately 56% of recycled metal market value on a per-tonne basis given its higher intrinsic value. Non-ferrous metals like copper, aluminum, lead and zinc and precious metals are gaining an increasing share of recycling investment, driven particularly by the demand for recycled battery metals and electronics-grade copper as EV adoption accelerates and critical mineral security becomes a strategic priority.

Indias metal recycling market is at an inflection point.

The market size is estimated at approximately USD 12 billion in FY2025 26 and it is expected to reach USD 19.3 bn by 2034, exhibiting a growth rate (CAGR) of 5.26%. India represents one of the most attractive near-term growth opportunities in secondary metals globally.

The country generates approximately 25 million tonnes of metal scrap annually, predominantly ferrous, but recycles only a fraction of its recyclable potential.

Recycled steel accounts for under 20% of Indias total steel production, compared with a global average of 30 32%. This gap represents both a structural challenge and a significant commercial opportunity for organized, technology-enabled recyclers.

Indias National Infrastructure Pipeline - involving investments of over 111 lakh crore through 2025 - is generating massive volumes of construction and demolition (C&D) metal waste. The Union Budget 2025-26 removed basic customs duty on a range of non-ferrous metal scrap items-including copper scrap, zinc scrap, lead scrap and battery scrap-directly reducing cost barriers for domestic recyclers and providing a structural advantage for organized operators over informal channels. The Vehicle Scrappage Policy, which came fully into effect in 2025, is creating a large formal pipeline of end-of-life vehicle scrap-estimated to add approximately 5-7 million vehicles annually to the scrap pool over the next decade.

KEY GOVERNMENT POLICIES SUPPORTING METAL RECYCLING IN INDIA

Policy / Scheme	Nodal Ministry	Key Provisions
Steel Scrap Recycling Policy	Ministry of Steel	Framework for formal collection, dismantling and processing of end-of-life metal products; targets 70 80 MT scrap demand by 2030
National Vehicle	MoRTH / Ministry of	Mandatory scrapping of 15+ year old vehicles through
Scrappage Policy	Heavy Industries	authorised RVSFs; creates structured scrap supply
Non-ferrous Recycled	Ministry of Mines /	Mandatory recycled content in aluminium (10%),
Content Rules (FY2028 )	MoEFCC	copper (20%), zinc (25%) manufactured products by FY2031
Critical Mineral Recycling Incentive Scheme	Ministry of Mines	1,500 crore scheme to build capacity for Li, Co, Ni recycling from e-waste and batteries
Hazardous Waste Management Rules (2016)	MoEFCC / CPCB	Regulates collection, storage and processing of hazardous waste including metal-containing streams
E-Waste Management Rules 2022	MoEFCC	EPR framework for e-waste; mandates manufacturer take-back and authorised recycler participation

Source: IMARC Group Metal Recycling Market Report; International Energy Agency (IEA) Iron & Steel Technology Roadmap; Bureau of International Recycling (BIR); World Steel Association; Ministry of Steel, Government of India; Press Information Bureau (PIB), Government of India; NITI Aayog National Infrastructure Pipeline: Ministry of Environment, Forest and Climate Change (MoEFCC)

Building on these structural opportunities, Felix Industries, through its subsidiary Felix Prime Metals

Private Limited, is focused on carrying out the recycling and recovery of metals from both hazardous and non-hazardous waste streams. The subsidiarys activities encompass the manufacturing, processing, refining, casting, trading and commercialization of recovered metals and ancillary metal products, with a strong emphasis on sustainable recycling, resource recovery and environmental conservation. To accelerate scale and strengthen its material recovery and refining infrastructure, the company has been actively pursuing

1.3.7 DESALINATION MARKET OVERVIEW

As a technology response to structural freshwater scarcity, desalination has transitioned from a niche, high-cost solution to a mainstream water supply option across the Middle East, Asia and increasingly India. Declining capital costs, particularly for reverse osmosis systems, combined with improved energy efficiency and intensifying policy support have driven this transformation. The global water desalination technologies market was valued at USD 21.9 billion in 2026 and is expected to reach USD 42.7 billion by 2033, growing at a CAGR of 10%.

An emerging and often underestimated demand driver is the water consumption of AI-driven data centres. Data centres and emerging technologies such as AI and green hydrogen are expected to significantly increase industrial water demand, reinforcing the need for alternative water sources such as desalination.

The Indian desalination market reached USD 736.7 million in 2025 and is expected to reach USD 1,633.1 strategic expansion initiatives, including acquisitions such as Tierra Fertilizer Private Limited, while also evaluating further opportunities to enhance its presence across the metal recycling value chain.

Management has indicated that discussions are at an advanced stage for expanding metal recycling capacity within this vertical, driven by growing demand from Indias electric vehicle ecosystem and construction sector and the increasing emphasis on circular economy initiatives under Extended Producer

Responsibility (EPR) regulations.

million by 2034, growing at a CAGR of 8.97%. Indias 7,500-kilometre coastline makes it inherently suited for seawater desalination, while substantial inland brackish water resources create demand for smaller-scale brackish water reverse osmosis systems. Tamil

Nadu and Gujarat have been the most active states in commissioning capacity. Industrial demand is growing particularly rapidly: pharmaceutical, textile, chemical and food processing manufacturers require high-purity process water and the intersection of desalination with ZLD requirements creates a specific technology niche in hybrid RO-crystallisation systems. Green hydrogen hubs under development in Gujarat,

Andhra Pradesh and Tamil Nadu similarly require large volumes of ultra-pure water. Felix Industries subsidiary Enovation Aquaprocess Private Limited, which focuses on advanced mixed salt separation processing, is positioned directly within this hybrid desalination-

ZLD niche, addressing both industrial water quality requirements and ZLD compliance.

Source: Grand View Research Water Desalination Equipment Market; IMARC Group India Water Desalination Market; IMARC Group Global Desalination Equipment Market; OG Analysis Global Desalination Market

PLASTIC WASTE MANAGEMENT (EMERGING VERTICAL)

Plastic waste management has emerged as a critical environmental priority as countries intensify efforts to reduce plastic pollution, improve resource efficiency and promote circular economy practices. Growing urbanisation, rising consumption of packaged goods and increasing environmental awareness have significantly expanded the volume of plastic waste generated globally, necessitating greater investment in organised collection, recycling and resource recovery infrastructure. Increasing regulatory intervention, corporate sustainability commitments and mandatory recycled-content requirements are further accelerating the shift towards a formalised plastic recycling ecosystem.

The global plastic recycling market is estimated at

US$52.16 Bn in 2026 and is projected to reach US$71.1 Bn by 2030, expanding at a CAGR of 8.0%, reflecting sustained long-term growth supported by policy interventions and industry-wide adoption of circular economy practices.

India is emerging as a key plastic recycling market, driven by regulatory frameworks such as the Plastic Waste Management Rules and the Extended Producer

Responsibility (EPR) regime, alongside increasing investments in a formal circular ecosystem. According to Mordor Intelligence, the market is valued at US$1.73 billion in 2025 and is projected to reach US$2.33 billion by 2030, growing at a CAGR of 6.17%.

The country generates approximately 9.4 million tonnes of plastic waste annually-nearly 20% of the global total-with around 90% originating from municipal sources. Indias plastic waste surge, spurred by swift urbanization, population growth and economic strides, is alarming. Urban demand for single-use plastics and packaging has skyrocketed. With per capita plastic consumption nearing 11 kg annually and projections of further increases due to rising industrialization and consumerism, the challenge looms large.

Source: https://www.mordorintelligence.com/industry-reports/india-plastic-waste-management-market

Rapid urbanisation and rising consumption continue to intensify the challenge, making plastic recycling a critical pillar of Indias transition towards a sustainable circular economy.

Source: https://www.mordorintelligence.com/industry-reports/india-plastic-waste-management-market

In this evolving landscape, Felix Industries, through its associate, is planning to enter the plastic waste recycling and resource recovery space-an area gaining strong regulatory momentum under Indias

EPR framework for plastic packaging.

1.4 REGULATORY ENVIRONMENT AND GOVERNMENT SCHEMES

Indias environmental services regulatory landscape underwent material strengthening in FY2025 26, with expanded mandates, tighter enforcement and record public expenditure across water, sanitation and waste management domains. This regulatory intensification structurally advantages compliant, technology-enabled operators by expanding the addressable market, raising barriers to informal entry and creating enforceable demand for licensed processing infrastructure.

UNION BUDGET ALLOCATIONS - WATER AND ENVIRONMENTAL INFRASTRUCTURE

SCHEME / ALLOCATION HEAD	FY25 REVISED ESTIMATE	FY26 BUDGET ESTIMATE	CHANGE
DEPT. OF DRINKING WATER & SANITATION	29,916 CR	74,226 CR	+148%
JAL JEEVAN MISSION	22,694 CR	67,000 CR	+195%
DEPT. OF WATER RESOURCES, RIVER DEV. & GANGA REJUVENATION	21,641 CR	25,277 CR	+17%
NAMAMI GANGE MISSION-II	3,000 CR	3,400 CR	+13%
AMRUT (URBAN WATER &
		10,000 CR	NEW
SEWERAGE)
SWACHH BHARAT MISSION - GRAMIN	7,192 CR	7,192 CR	FLAT
MINISTRY OF JAL SHAKTI - TOTAL	51,558 CR	99,503 CR	+93%

Source: Press Information Bureau; PRS Legislative Research, Demand for Grants 2025 26.

UNION BUDGET ALLOCATIONS - WATER AND ENVIRONMENTAL INFRASTRUCTURE

PROGRAMME	STATUS AND RELEVANCE
JAL JEEVAN MISSION (JJM) AMRUT 2.0	Extended to 2028 with 67,000 crore outlay. 81% rural household coverage achieved (15.68 crore HHs). Drives demand for decentralised water treatment, quality monitoring and distribution infrastructure. 2.77 lakh crore outlay across 4,378 towns. Mandates 100% sewerage in 500 cities and 20% wastewater recycling. 18.9 million tap connections delivered. Major pipeline for urban water and wastewater EPC. 3,400 crore in FY26 (total 22,500 crore). 173 STPs operational; 3,977
NAMAMI GANGE MISSION-II	MLD treatment capacity created; 538 MLD added in FY26. Focused on STP expansion and advanced treatment technologies. 1,41,600 crore outlay. ZLD-linked faecal sludge mandates; 1,191 ULBs
SWACHH BHARAT MISSION 2.0	rated ODF++; targets 100% sewage treatment in Class I and II towns. 19,744 crore through FY30; 5 MMT production target by 2030. GHCI
NATIONAL GREEN HYDROGEN MISSION	certification live from April 2025. Creates demand for industrial water treatment and ultra-pure water supply infrastructure.
PROGRAMME	STATUS AND RELEVANCE
NATIONAL INFRASTRUCTURE PIPELINE	185 trillion, 13,000-project pipeline. Water, sewerage and environmental management are priority verticals with long project-execution visibility. 1 lakh crore announced in Union Budget 2025 26 for city infrastructure
URBAN CHALLENGE FUND	development, with water security and sanitation as core investment themes.

UNION BUDGET 2026 27 - ADDITIONAL

ENVIRONMENTAL PRIORITIES

The Union Budget for FY2026 27 (presented February 2026) further reinforced government commitment to environmental infrastructure. Public capital expenditure was raised by 9% to 12.2 lakh crore with effective capex, including state grants, exceeding

4% of GDP. Special Assistance to States for Capital Investment (SASCI) was increased 23% to 1.85 lakh crore, inclusive of sewerage, water supply and waste management. Notable new initiatives include 20,000 crore over five years for Carbon Capture, Utilisation and Storage (CCUS) across five high-emission industries; City Economic Regions (CERs) with 5,000 crore per region requiring integrated water, waste and environmental management; and an Infrastructure Risk

Guarantee Fund offering partial credit guarantees for environmental infrastructure lenders.

Source:Union Budget 2026-27 (February 1, 2026), Ministry of Finance

OTHER RELEVANT INITIATIVES

- Make in India and PLI-linked incentives supporting domestic manufacturing of membranes, pumps and environmental engineering equipment, reducing import dependence for treatment-plant components.

- Tax incentives for businesses adopting net-zero and

ESG-aligned operating practices, strengthening corporate demand for water-reuse and resource-recovery solutions.

Source:Press Information Bureau; Ministry of New and Renewable Energy; Ministry of Environment, Forest and Climate Change; Central Pollution Control Board.

1.5 KEY INDUSTRY TRENDS AND STRUCTURAL SHIFTS

Six structural forces are reshaping Indias environmental services landscape each expanding the long-term addressable market for water treatment, industrial effluent management, e-waste recycling and clean energy infrastructure.

1. Water Scarcity as Structural Demand Driver

India holds 4% of global freshwater but supports 18% of the worlds population. Twenty-one major cities face groundwater depletion by 2030. Rising per capita demand from urbanisation and industrialisation has elevated water treatment from an infrastructure service to a strategic national priority-sustaining long-cycle, government-backed demand for treatment EPC.

India: 25% of global groundwater extraction Urban water coverage 70% (2025)

2. Accelerating Urbanisation & Infrastructure Gap

Urban India generates 48,000 MLD of sewage daily against an installed treatment capacity of 30,000 MLD - an 18,000 MLD deficit that will take years to bridge.

Rapid city growth, new City Economic Regions and the governments record 12.2 lakh crore capex budget for FY27 are collectively sustaining a multi-year order pipeline for water and wastewater EPC contractors.

Wastewater treatment market: USD 9.64 bn (2024) ? USD 18.63 bn by 2033 CAGR 7.6%

3 Compliance-Driven Industrial Water Treatment

ZLD mandates enforced by CPCB and State Pollution

Control Boards across textiles, pharmaceuticals, distilleries and tanneries are converting compliance into an operational necessity. Industries now risk NOC rejection and forced shutdown for non-compliance.

ZLD is also becoming a supply chain due diligence requirement for EU and US export buyers, elevating it from regulatory cost to competitive differentiator.

India water treatment market: USD 2.54 bn (2025) ? USD 6.97 bn (2035) CAGR 10.6%

5 Technology Integration & Smart Infrastructure

IoT-based SCADA monitoring, membrane-based separation, Sequential Batch Reactor (SBR) and Membrane Bio-Reactor (MBR) technologies are becoming mainstream procurement specifications.

AMRUT 2.0 had approved 1,487 water supplies. projects with SCADA by June 2025. Technology capability is increasingly a differentiator in competitive EPC tendering, rewarding operators with strong in-house engineering and digital integration.

India membrane treatment market: USD 520 mn (2025) ? USD 891 mn (2032) CAGR 8%

4 Regional expansion into the Gulf: Tightening environmental regulation and water-scarcity pressures across the GCC, particularly in Oman and the wider

Middle East, are creating export opportunities for Indian environmental engineering companies with proven hydrocarbon-recycling and ZLD execution capability.

6 Circular Economy & Resource Recovery as Core Industry Shift

Industrial waste is increasingly being viewed as a resource rather than a liability. Regulatory pressure, Rising raw material costs and sustainability commitments are accelerating investments in waste-to-value solutions-including used oil re-refining, solvent recovery, metal extraction and plastic-to-fuel technologies. This shift is expanding opportunities for integrated environmental service providers capable of combining waste treatment with resource recovery at scale.

Sources: IMARC Group, India Wastewater Treatment Market 2033 (imarcgroup.com); Market Research Future, India Water Treatment Market 2035; India E-Waste Management System Market 2034; Mordor Intelligence, India Water & Wastewater Treatment Technology Market 2031; Vyansa Intelligence, India Membrane Treatment Market 2032; mnre.gov.in; PIB; CEEW, Water Reuse & Sustainable Financing for Indias Water Crisis (2025); CPCB; insightsonindia.com, Indias Water Gap Crisis (March 2025).

1.6 BUSINESS PERFORMANCE IN THE CONTEXT OF INDUSTRY GROWTH

The favorable macroeconomic environment, supportive government policies and increasing industrial investments in water treatment, wastewater recycling, resource recovery and environmental infrastructure translated into strong business momentum for Felix Industries during FY2025 26. Leveraging its integrated capabilities across environmental engineering, water and wastewater treatment, waste oil management and sustainable resource recovery, the Company has delivered its strongest financial performance to date.

Consolidated revenue from operations increased by

178% year-on-year to 102.21 crore, while EBITDA grew by 131% to 31.88 crore and Profit After Tax (PAT) increased to 18.18 crore. The Companys performance reflects its ability to effectively capitalise on favourable industry dynamics through disciplined execution, operational excellence and an expanding portfolio of environmental solutions.

During FY2025 26, the Companys revenue continued tobeprimarilydrivenbyitscorewaterandenvironmental engineering businesses in India, complemented by the scaling of its waste oil management operations in

Oman. The Company also continued to strengthen its presence across emerging business verticals, including metal recycling, hazardous waste management and resource recovery, which are expected to contribute progressively to future growth as capacities are ramped up and commercial operations mature.

Felix Industries has strategically evolved from a project execution company into a provider of integrated environmentalinfrastructuresolutions,withanincreasing focus on Build, Own, Operate and Transfer (BOOT) and Operations & Maintenance (O&M) models. These long-term engagement models enable the Company to build recurring revenue streams, strengthen customer relationships and enhance earnings visibility through sustained operational partnerships. Complementing this approach, its Engineering, Procurement and

Construction (EPC) capabilities, together with waste management, resource recovery and technology-driven environmental solutions, enable Felix to deliver comprehensive, end-to-end solutions across a diverse range of industries.

The GCC region, particularly Oman, continued to represent an important strategic market during FY2025 26. While geopolitical developments in the Middle East resulted in a temporary moderation in business activity during the closing months of the financial year, project execution resumed as conditions normalised and the company continues to see healthy business prospects in the region. Supported by increasing environmental regulations, industrial investments and growing demand for waste management and resource recovery solutions, the long-term outlook for the companys international operations remains encouraging.

Looking ahead, the company remains confident of sustaining its growth momentum, supported by a healthy project pipeline, increasing contribution from overseas operations and continued expansion of its recurring revenue portfolio. Based on the current business outlook and managements growth strategy,

1.7 OPERATIONAL FOOTPRINT & COMPETITIVE POSITIONING

BUSINESS VERTICAL (UP TO 31ST MARCH)	CURRENT OPERATIONAL CAPACITY	STRATEGIC POSITION
WATER & WASTEWATER MANAGEMENT	17+ MLD	INDUSTRIAL & MUNICIPAL EPC/O&M
WASTE OIL MANAGEMENT (OMAN)	40 TPD	GCC REFINERIES & INDUSTRIAL CUSTOMERS
METAL RECYCLING	4 TPD	NEWLY COMMISSIONED FACILITY
HAZARDOUS WASTE & ENVIRONMENTAL MANAGEMENT	INTEGRATED SOLUTIONS	INDUSTRIAL CLIENTS

Felix Industries differentiates itself through its integrated environmental solutions platform encompassing water and wastewater management, waste oil management, hazardous waste management, resource recovery and environmental engineering services. The company has developed strong capabilities across the entire project lifecycle through its EPC (Engineering, Procurement and Construction) , BOOT (Build-Own-Operate-Transfer) and O&M (Operations & Maintenance) business models, enabling it to deliver end-to-end environmental infrastructure solutions. Unlike pure-play EPC contractors, Felix is strategically increasing the proportion of recurring revenues through long-term BOOT and O&M contracts, technology-led services and resource recovery businesses, thereby enhancing earnings visibility, cash flow stability and operational resilience.

COMPANY OVERVIEW

2.1 COMPANY OVERVIEW AND BUSINESS PROFILE

Felix Industries Limited is an integrated environmental solutions company focused on enabling the circular economy through advanced technologies in water and wastewater management, waste management, waste oil management and resource recovery. Since its establishment in 2010 and subsequent listing on the National Stock Exchange in 2017, the company has expanded its capabilities across India and international markets, delivering sustainable solutions to industrial and municipal customers.

The companys business model is built around the principles of Recycle, Reuse, Recover and Reduce, transforming waste streams into valuable resources while helping customers improve operational efficiency, meet stringent environmental regulations and reduce their ecological footprint. By combining engineering expertise with technology-driven solutions, Felix continues to strengthen its position as a trusted partner in environmental infrastructure and resource recovery.

2.2 BUSINESS MODEL AND REVENUE STREAMS

Felix operates through a diversified contractual architecture, each model calibrated to client requirements and project risk profiles:

- EPC (Engineering, Procurement &

Commissioning) - One-time project execution with revenue recognition on milestone completion

- BOO (Build, Own & Operate) - Felix owns and operates the asset; recurring income over the contract life

- BOOT (Build, Own, Operate & Transfer) - 5 10 year operation followed by asset transfer; annuity revenue generation

- Infrastructure Development - Shared CETP and

ZLD infrastructure projects generating long-term annuity income through treatment and O&M services.

- O&M (Operations & Maintenance) - Standard price contracts for ongoing facility management

- PPP (Public-Private Partnership) - Government-sponsored environmental infrastructure projects

2.2 SUBSIDIARIES AND GROUP STRUCTURE

Felix operates through a carefully constructed corporate hierarchy that assigns specialised functions to distinct legal entities while retaining consolidated operational governance under the parent:

ENTITY	TYPE		PRIMARY MANDATE & KEY ACTIVITIES
FELIX INDUSTRIES LTD.	PARENT		Core EPC, BOOT and O&M environmental engineering across water and wastewater management, solid waste management and waste oil management verticals in India.
FELIX INDUSTRIES LLC, OMAN	SUBSIDIARY (76.50%)		Hazardous waste treatment, single-use plastic processing, chemical waste incineration, oil recycling and environmental cleanup for the Gulf oil & gas sector.
RIVITA SOLUTIONS PVT. LTD.	SUBSIDIARY		Current capacity: 40 TPD; target 100 TPD by FY2026-27. Engineering and technology solutions for the oil & gas sector; operates 5 plants for ONGC (6th being commissioned); water infrastructure construction and maintenance; registered vendor for oil & gas PSUs.
ENTITY		TYPE	PRIMARY MANDATE & KEY ACTIVITIES Urban water management for residential complexes, luxury hotels and hospitals; niche products RoSoft
FELIX WMC PVT. LTD		SUBSIDIARY	(surface/groundwater reclamation) and Aiwasun (energy- efficient water systems); bore well; commercial; and residential wastewater solutions.
ENOVATION AQUAPROCESS PVT. LTD.		SUBSIDIARY	R&D, design, manufacturing and maintenance of water treatment systems; proprietary mixed salt separation process for salt recovery; membrane and advanced treatment technologies.
FELIX PRIME METALS PVT. LTD.		SUBSIDIARY	Metal recycling and recovery from hazardous and non- hazardous waste; manufacture, refining, casting and trading of recovered metals; circular economy positioning
ECO VISION AQUA CARE PVT. LTD.		ASSOCIATE	Environmental infrastructure development for CETP-ZLD facilities and EPC and O&M services for common effluent treatment and zero liquid discharge systems.

RECENT SIGNIFICANT ORDER WINS AND CONTRACT MILESTONES

FY2025-26 saw Felix Industries secure a material pipeline of high-value, long-tenure contracts that collectively enhance revenue visibility, deepen client relationships and validate the Companys ability to compete for large-scale infrastructure assignments. The following table captures the key contract wins disclosed during the year:

CLIENT SECTOR	SCOPE	CONTRACT VALUE	TENURE	MODEL
SEMI-GOVT. BODY (OMAN)	End-to-end hazardous waste mgmt. at Qalhat & Sur	40 CR (OMR 1.8 MN)	5 YEARS	O&M (WASTE MANAGEMENT CONTRACT)
JAL JEEVAN MISSION PHARMA/	500 KLD ZLD + 500 KLD WTP - design, supply, install, commission + O&M	63.64 CR	10 YEARS	O&MS
INDUSTRIAL (GUJARAT)	1,500 KLD ZLD + 1,500 KLD WTP + 120 KLD STP + O&M	140.08 CR	10 YEARS	BOOT
INDUSTRIAL CETP (GUJARAT)	2 MLD ZLD CETP	32.65 CR	CONTRACT	EPC
OIL & GAS CO. (GUJARAT)	Effluent water processing & O&M	2.20 CR	3 YEARS	BOO
STEEL SECTOR CO. (GUJARAT)	75 KLD ZLD plant supply & installation	1.43 CR	2 3 MONTHS	EPC + O&M
OIL & GAS SECTOR COMPANY	Hiring of facilities for effluent water processing & O&M	1.90 CR	3 YEARS	BOO
OIL & GAS SECTOR COMPANY	Installation & O&M of Water Injection Facility	1.87 CR	3 YEARS	BOO
		60 Crore		O&M (WASTE
SEMI-GOVT. BODY (OMAN)	Hazardous waste collection, treatment, recycling & disposal	(OMR 2.6 million)	3 YEARS	MANAGEMENT
				CONTRACT)

3. SWOT ANALYSIS

S - STRENGTHS

Integrated End-to-End Delivery Platform

- End-to-end value chain integration across design, engineering, construction, commissioning and O&M eliminates subcontracting risk and protects margin integrity

Diversified Business Model Portfolio

Diversified delivery model spanning EPC, BOO, BOOT, BOT, O&M, DBO and PPP, enabling risk-adjusted revenue capture across contract typologies and project scales

Technology-Led Competitive Advantage

- Proprietary technologies including RoSoft, Aiwasun, mixed salt separation (Enovation) and in-house acid reclamation process provide technological differentiation

Strategic International Presence

- International presence via fully licensed Felix

Industries LLC (Oman, 76.5% stake) - strategically positioned in a premium-priced Gulf market with tightening environmental regulation

Diversified Industry Exposure

Multi-sectoral clientele across 15+ industries (pharma, steel, F&B, textiles, oil & gas, chemicals, power) reduces

W - WEAKNESSES

Dependence on EPC-Led Revenue Streams

Revenue concentration in project-based (EPC) revenue introduces execution risk and cash-flow cyclicality; the annuity/O&M proportion remains under-scaled relative to peer benchmarks.

Margin Pressure During Expansion Phase

Declining EBITDA margin from 37.45% in FY2024-25 to 31.19% in FY2025-26 reflects scale-up costs, higher finance charges and working capital intensity of a rapidly expanding order book

Emerging International Operations Risk

Oman operations remain early-stage (40 TPD capacity), exposing the Company to forex risk, geopolitical considerations and cross-border regulatory compliance.

concentration risk and broadens addressable market

Robust Financial Performance

FY2025-26 ROCE of 16.38% reflects disciplined capital deployment; revenue grew 178% YoY to 102.2

Cr on consolidated basis

Scalable Infrastructure Base

75,766 sq. mt. aggregate production and facility infrastructure with facilities in Gujarat and Oman supports scalable capacity ramp

Experienced & Professional Management Team

Management depth: Founder with 20+ years experience; whole-time director with 40+ years in environmental compliance; CA-qualified Finance Director ensuring boardroom-grade financial governance

Demand-Led Capacity Expansion

Felix follows a demand-driven capacity expansion strategy, aligning investments with customer commitments and market opportunities rather than speculative capacity creation. This disciplined approach supports efficient capital allocation, improves asset utilisation and reduces the risk of idle capacity.

Geographic Concentration in Domestic Markets

- While internationalisation is progressing, a significant portion of current domestic revenue is concentrated in Gujarat-based clients and contracts. Geographic diversification within India remains a work-in-progress.

Execution Risk in Emerging Verticals

- Metal recycling, plastic recycling and acid reclamation businesses remain at an early stage of development, requiring continued capital investment, acquisition integration and customer onboarding before achieving meaningful revenue contribution, creating short-term execution and scale-up risks.

O - OPPORTUNITIES

Water Reuse Mandates

Indias Liquid Waste Management Rules 2024 mandate treated wastewater reuse of 20% by FY2028 and 50% by FY2031 for bulk industrial users.Felix already serves bulk industrial clients in pharma, textiles and chemicals - precisely the categories the mandate targets - making this an upsell opportunity into an existing client base rather than a new-client acquisition challenge.

Environmental Infrastructure Gap

Only 54% of Indias 62 million tonnes of annual waste is scientifically treated, 62.5% of urban wastewater remains untreated and only 37% of installed treatment capacity is utilised nationally. Felixs 75,766 sq. mt. facility base provides room to expand into this underserved gap without a fresh land/facility investment cycle.

Supportive policy tailwinds

- Swachh Bharat Mission 2.0 remediation mandate for

2,452+ legacy dumpsites; government allocation of

W - WEAKNESSES

Regulatory & Policy Changes

- Frequent changes in environmental regulations, compliance standards and government policies could impact project execution timelines, operating costs and profitability.

Project Execution Risks

-Delaysinapprovals,landacquisition,clientclearances, or supply chain disruptions can affect completion schedules and cash-flow realisation, particularly given

Felixs current order-book expansion pace.

Customer Concentration & Tender Dependency

- A significant reliance on large industrial and government contracts exposes the company to tender delays, contract renewals and customer-specific spending cycles. The Company is currently focused on private-sector opportunities, while remaining open to partnering with government and semi-government entities in the future to address emerging environmental challenges.

Rising Competitive Intensity

Increasing participation from water/ZLD EPC

1,500 Cr for waste-to-energy; SBM 2.0 extended till 2028 - direct beneficiary opportunity for Felixs solid waste capabilities

Middle East Regulatory Intensification

GCC adoption of stricter environmental standards - aligned with Vision 2030/2040 and increasingly mirroring EU/US MARPOL-level waste protocols

- creates a premium-priced market for integrated hazardous waste and oil recycling services. Felixs Oman subsidiary is already licensed and operating in this market, ahead of India-only peers.

Municipal and Government Infrastructure Pipeline

Smart Cities Mission, AMRUT 2.0, Swachh Bharat Mission 2.0 and PM Gati Shakti create a multi-decade pipeline of CETP, STP and solid waste projects.

NMCG and Jal Jeevan Mission (81.52% rural household coverage, extended to 2028) open large-scale PPP and government contracting channels

contractors and oil re-refining players - rather than the EPC sector broadly - may pressure pricing and margins in the segments where Felix directly competes.

Capital-Intensive BOO/BOOT Projects

Expansion through BOO and BOOT models requires substantial capital deployment, exposing the Company to financing, interest rate and return-on-investment risks.

Technology Obsolescence

- Rapid advancements in treatment, recycling and digital monitoring technologies may require continuous investment to maintain competitiveness and operational efficiency.

Raw Material & Equipment Cost Inflation

- Volatility in equipment, membrane, steel and construction costs can impact project margins, particularly in fixed-price contracts.

Geopolitical & International Market Risks

Growing overseas operations expose the Company to currency fluctuations, geopolitical uncertainties and country-specific regulatory challenges.

4. FINANCIAL PERFORMANCE ANALYSIS

FINANCIAL HIGHLIGHTS - FY2025-26

FY2025-26 was the most consequential year in Felix Industries listed history. The Company delivered a near-tripling of consolidated revenues, a doubling of absolute profitability and a meaningful improvement in return on capital - outcomes that validate the multi-year investment cycle the management has been executing since

FY2023-24.

REVENUE FROM OPERATIONS 10,221.3 LAKHS +177.6% YOY

Consolidated revenue crossed 100 crore for the first time, growing 177.6% from 3,682.2 Lakhs in FY25. The performance reflects the convergence of multiple revenue streams activating simultaneously - large BOOT annuity contracts in Gujarat reaching full operational throughput, the Oman subsidiary completing its first full commissioned year and O&M revenues growing organically as the installed asset base expanded. Q4 FY26 alone delivered 3,743.4 Lakhs - the Companys highest-ever quarterly revenue - confirming that momentum was accelerating as the year closed.

EBITDA - 3,188.1 LAKHS +131.2% YOY MARGIN: 31.19%

EBITDA grew 131.2% to 3,188.1 Lakhs. The EBITDA margin of 31.19% reflects a compression of approximately 626 basis points versus the prior years 37.45%, attributable to the ramp-up phase margin profile of Oman operations and a higher proportion of EPC contract completions in the revenue mix. As Oman scales toward 100 TPD and annuity revenues constitute a larger share of consolidated income, margins are expected to recover progressively.

PAT - 1,818.3 LAKHS +99.5% YOY EPS: 11.51

Net profit crossed 1,818.3 Lakhs, growing 99.5% from 911.3 Lakhs. PAT margin of 17.79% reflects higher finance costs (+206.8% YoY) and depreciation (+163.9% YoY) as newly commissioned BOOT assets and Oman infrastructure entered the cost cycle - charges that are transitional and will grow more slowly relative to revenues as the asset base matures. Basic EPS grew 67.5% to 11.51.

ROCE - 16.38% +399 BPS YOY

Return on Capital Employed improved from 12.27% to 16.38% - demonstrating that capital deployed across the investment cycle is now generating returns above the cost of capital, with incremental deployment at improving marginal productivity.

BALANCE SHEET - TOTAL ASSETS: 24,545.6 LAKHS +65.1% YOY

Net worth grew 116.8% to approximately 15,174.3 Lakhs on the back of strong PAT accretion. Fixed assets rose to 9,002.2 Lakhs reflecting BOOT plant capitalisations and Oman investment. Cash improved nearly three-fold to 982.0 Lakhs. Shareholder-authorised borrowing limits of 100 crore provide headroom for continued growth without near-term equity dilution.

STRONG Q4 MOMENTUM

Felix delivered its highest-ever quarterly revenue of 3,743.4 Lakhs in Q4 FY26, up 188.1% YoY, while EBITDA increased 66.8% to 932.2 Lakhs. Sequential revenue growth of 39.8% over Q3 FY26 highlights strong operational momentum entering FY2026-27, signalling strong operating momentum entering FY27.

SHAREHOLDER VALUE CREATION

FY2025-26 witnessed strong value creation, with EPS rising 67.5% to 11.51 and ROCE improving by 399 basis points. Growth in reserves significantly enhanced book value per share, while retained earnings continue to be reinvested into high-return growth opportunities across the Companys expanding business portfolio.

4.1 KEY FINANCIAL RATIOS & VARIANCE ANALYSIS

Particulars	FY2025-26	FY2024-25	% Change
Current Ratio (times)	2.08	1.57	33.05%
Debt-to-Equity Ratio (times)	0.52	0.69	-23.52%
Debt Service Coverage Ratio (times)	0.82	0.68	19.82%
Inventory Turnover Ratio (times)	3.80	1.88	102.05%
Net Profit Ratio (%)	17.79%	24.75%	28.12%
Return on Capital Employed - ROCE (%)	18.40%	8.77%	-109.87%

5. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Felix Industries Limited has established a comprehensive internal control framework designed to ensure operational efficiency, safeguard assets, maintain the accuracy of financial records and ensure compliance with applicable laws, regulations and internal policies. The Companys control environment is aligned with the scale and complexity of its operations across engineering, environmental infrastructure, recycling and operations & maintenance activities.

The internal control system encompasses well-defined policies and procedures covering project execution, procurement, contract management, financial reporting, treasury operations, asset management, statutory compliance and risk monitoring. Appropriate authority matrices and approval mechanisms are in place to ensure accountability and transparency in decision-making across business functions.

The Company maintains robust financial controls supported by periodic management reviews, budgetary controls and monitoring mechanisms to track operational and financial performance. Internal audits are conducted at regular intervals to evaluate the effectiveness of controls, identify process improvement opportunities and strengthen risk mitigation measures.

Audit committee observations and recommendations are reviewed by management and the Audit Committee, which oversees the adequacy and effectiveness of the internal control framework.

The Audit Committee of the Board plays an active role in reviewing internal audit findings, financial reporting processes, compliance status and risk management practices. Based on these reviews and the internal audit assessments carried out during the year, the management believes that the Companys internal control systems are adequate and operating effectively, commensurate with the nature, size and complexity of its business operations.

With consolidated revenue from operations increasing by nearly 178% to 14,234.45 lakhs in FY2025-26, coupled with the addition of large-value projects such as the 14,008 lakhs BOOT contract and 3,265 lakhs EPC order, Felix has continued to strengthen its internal control and monitoring mechanisms. Enhanced oversight over project execution, procurement, contract administration, cash flow management and financial reporting enables the Company to manage operational complexities effectively while supporting sustainable and controlled business growth.

6. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES

The success of Felix Industries is driven by the expertise, commitment and innovation of its people. As the Company continues to expand its presence across environmental infrastructure, water and wastewater treatment, recycling and operations & maintenance services, it remains focused on building a skilled workforce capable of delivering sustainable growth and operational excellence.

During FY2025-26, Felix strengthened its human capital base through targeted recruitment, capability enhancement and continuous learning initiatives aimed at supporting its growing domestic and international operations. The Company invested in developing technical, managerial and operational competencies across key functions, ensuring that its talent pool remains aligned with evolving industry requirements and business opportunities.

Felix fosters a culture of performance, collaboration, safetyandinnovation,whereemployeesareencouraged to contribute ideas, embrace accountability and pursue professional growth. The Company continues to prioritize employee well-being, workplace safety and skill development, recognizing that a motivated and engaged workforce is fundamental to long-term success.

As of March 31, 2026Currently, the Company employed

293 professionals across its operations. With a strong blend of technical expertise, industry experience and entrepreneurial mindset, Felixs workforce remains a key competitive advantage in executing complex projects, driving innovation and creating enduring value for stakeholders.