Flywings Simulator Training Centre Ltd Management Discussions

In compliance with the applicable provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI Listing Regulations"), the Management Discussion and Analysis Report ("MD&A") provides an overview of the operating performance, financial performance, business environment, opportunities, risks and outlook of Flywings Simulator Training Centre Limited ("Company" or "FWSTC") for the financial year ended March 31, 2026.

The discussion below should be read in conjunction with the Companys audited financial statements and the accompanying notes thereto.

1. INDUSTRY OVERVIEW

The aviation industry continues to evolve with increasing emphasis on aviation safety, skilled manpower, regulatory compliance, specialised training infrastructure and maintenance capabilities. The growth and development of aviation infrastructure and related services create opportunities for specialised aviation training and Maintenance, Repair and Overhaul ("MRO") activities.

Aviation training is an essential component of the aviation ecosystem, particularly in relation to safety and emergency procedures, simulator-based training and other specialised training requirements for aviation personnel. At the same time, MRO services form an important part of the aviation value chain by supporting aircraft availability, operational efficiency and safety.

The industry, however, remains sensitive to several external factors, including economic conditions, regulatory developments, availability of trained personnel, capital expenditure requirements, technological developments, foreign exchange movements and changes in the operating environment of the aviation sector.

2. COMPANY OVERVIEW AND BUSINESS OPERATIONS

Flywings Simulator Training Centre Limited is engaged in aviation-related training activities and MRO-related operations. During the financial year under review, there was no change in the nature of the Companys business.

The Company continues to focus on providing aviation-related training and developing its capabilities in the aviation services segment. The Companys business model is supported by its focus on specialised aviation training requirements and associated aviation services.

The Company remains committed to strengthening its operational capabilities, maintaining high standards of service quality and complying with applicable regulatory requirements governing its activities.

3. FINANCIAL PERFORMANCE

The Company delivered a resilient financial performance during FY 2025–26. The financial performance reflects growth in income while maintaining profitability despite an environment characterised by inflationary pressures, slower economic growth, higher interest rates and geopolitical uncertainties.

Standalone Financial Performance

Particulars	FY 2025–26 (Rs Lakhs)	FY 2024–25 (Rs Lakhs)
Total Income	2,582.04	2,364.33
Total Expenses	1,078.19	820.55
Profit Before Tax	1,541.84	1,513.76
Profit After Tax	1,143.40	1,078.09

The Company recorded total income of Rs 2,582.04 lakhs during FY 2025–26 as compared with Rs 2,364.33 lakhs during FY 2024–25, representing an increase of approximately 9.20%. Profit After Tax increased from Rs 1,078.09 lakhs in FY 2024–25 to Rs 1,143.40 lakhs in FY 2025–26, representing an increase of approximately 6.06%.

Profit Before Tax increased from Rs 1,513.76 lakhs to Rs 1,541.84 lakhs during the same period. The increase in profitability demonstrates the Companys continued ability to generate positive earnings while operating in a challenging business environment.

Consolidated Financial Performance

On a consolidated basis, the Company reported:

Particulars	FY 2025–26 (Rs Lakhs)	FY 2024–25 (Rs Lakhs)
Total Income	2,630.93	2369.88
Total Expenses	1,127.06	871.90
Profit Before Tax	1503.87	1497.98
Profit After Tax	1143.41	1032.22
Share of Profit from Associate	21.07	-
Consolidated Profit After Tax	1,164.48	1032.22

The consolidated Profit After Tax for FY 2025–26 stood at Rs 1,164.48 lakhs, including Rs 21.07 lakhs representing the Companys share of profit from its associate, Ambitions Flying Club Private Limited.

4. OPERATIONAL PERFORMANCE

The Company maintained its focus on aviation-related training and MRO activities during the year under review. The increase in total income reflects continued business activity and the Companys ability to maintain its market presence. The Management continues to focus on operational efficiency, service quality, regulatory compliance and strengthening the Companys capabilities in aviation-related services.

The Company also continued to maintain appropriate internal processes and controls for financial reporting, asset management, regulatory compliance and operational monitoring.

5. BUSINESS PERFORMANCE AND KEY DRIVERS

The principal factors supporting the Companys performance during FY 2025–26 include:

- Continued demand for specialised aviation training services;

- The Companys established presence in the aviation training segment;

- Focus on operational efficiency and disciplined cost management;

- Development of capabilities in aviation-related MRO activities;

- Continued emphasis on regulatory compliance and safety standards; and

- Strengthening of the Companys organisational and governance framework following its listing on the SME Platform of National Stock Exchange of India Limited (“NSE Emerge”) on December 12, 2025.

The Company believes that its aviation-focused capabilities and experience provide a foundation for sustainable growth as it continues to develop its business operations.

6. OPPORTUNITIES

The aviation sector presents opportunities for companies providing specialised training and aviation support services. The Management believes that the following areas may provide opportunities for the Company:

a) Aviation Training

The increasing importance of safety, regulatory compliance and skill development in aviation provides opportunities for specialised aviation training services.

b) Simulator-Based Training

The increasing use of simulation-based training provides opportunities to expand specialised and technology-enabled aviation training capabilities.

c) MRO Services

The development of the Companys MRO capabilities provides an opportunity to participate in the aviation maintenance and support services ecosystem.

d) Expansion of Aviation Services

The Company may evaluate opportunities to broaden its aviation-related service offerings in line with market requirements, regulatory developments and available resources.

7. OUTLOOK

The Management remains cautiously optimistic about the Companys medium- to long-term prospects.

The Company intends to continue strengthening its aviation training and MRO capabilities while focusing on operational efficiency, service quality, regulatory compliance and prudent financial management.

The Management will continue to monitor developments in the aviation sector, regulatory requirements, technological changes, customer requirements and prevailing economic conditions and will evaluate business opportunities based on their commercial viability and strategic fit.

The Companys focus will remain on sustainable growth rather than short-term expansion, with appropriate consideration given to capital requirements, operational capabilities and risk management.

8. RISKS AND CONCERNS

The Companys operations are subject to various risks that may affect its business performance. These include, among others:

a) Regulatory Risk

Aviation training and MRO activities are subject to regulatory requirements and approvals. Changes in applicable regulations, standards, certification requirements or regulatory policies may impact the Companys operations.

b) Market and Economic Risk

Changes in economic conditions, inflation, interest rates and overall business sentiment may affect demand for aviation-related services and the Companys operating costs.

c) Operational Risk

The Companys operations require appropriate infrastructure, trained personnel, technology and operational processes. Any disruption in these areas may adversely affect service delivery.

d) Technology Risk

Aviation training and simulator-related activities are dependent on technology and specialised equipment. Technological changes may require continuing investments and upgrades.

e) Human Resource Risk

The availability and retention of appropriately skilled and experienced aviation professionals is important to the Companys operations. Competition for specialised talent may affect manpower costs and operational continuity.

f) Financial and Liquidity Risk

The Company is required to maintain adequate liquidity to meet its operational and strategic requirements. The Management continuously monitors cash flows and liquidity requirements to maintain an appropriate balance between financial flexibility and efficient utilisation of funds. The Company maintains sufficient liquidity to meet its strategic objectives and manages liquidity with the objective of balancing adequate returns with the need to cover financial and business risks.

9. RISK MANAGEMENT

The Company periodically reviews the risks associated with its business operations and evaluates the potential impact of identified risks.

The Management believes that appropriate operational and internal control measures are necessary to identify, monitor and mitigate risks. The Company continues to review its risk environment in light of its evolving business activities, regulatory requirements and strategic plans.

The Company will continue to strengthen its risk management framework as its business operations expand.

10. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

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

The internal control framework is designed to facilitate:

- Timely and accurate financial reporting in accordance with applicable accounting standards;

- Proper safeguarding and efficient utilisation of the Companys assets;

- Appropriate monitoring and maintenance of assets;

- Compliance with applicable laws, regulations and management policies; and

- Prevention and detection of errors and irregularities.

The Management believes that the Companys internal control systems are adequate and commensurate with the size and nature of its business.

11. LIQUIDITY AND CAPITAL RESOURCES

Liquidity management remains an important area of focus for the Company. The Company seeks to maintain adequate liquidity to meet its operational requirements and strategic objectives. The Management continuously monitors cash flows, working capital requirements and anticipated capital expenditure to ensure that sufficient financial resources are available when required. The Company also seeks to maintain an appropriate balance between financial flexibility, business requirements and efficient utilisation of available funds.

12. CAPITAL STRUCTURE

As at March 31, 2026, the authorised share capital of the Company was Rs 12.00 crore, comprising 1,20,00,000 equity shares of Rs 10 each.

The issued and paid-up share capital stood at Rs 10.177 crore, comprising 1,01,77,128 equity shares of Rs 10 each.

The equity shares of the Company are listed on the SME Platform of National Stock Exchange of India Limited (NSE Emerge) since December 12, 2025.

13. UTILISATION OF IPO PROCEEDS

During the financial year, the Company received proceeds from the fresh issue of equity shares.

The utilisation of proceeds as disclosed in the Directors Report was as follows:

Particulars	Amount disclosed in Offer Document (Rs Lakhs)	Utilised (Rs Lakhs)	Unutilised (Rs Lakhs)
Capital expenditure towards purchase of machines	3,533.98	666.01	2,867.06
General Corporate Purpose	468.34	468.34	Nil
Issue-related expenses	797.13	797.13	Nil

The Company continues to monitor the utilisation of the balance IPO proceeds in accordance with the objects disclosed in the Offer Document and applicable regulatory requirements.

14. HUMAN RESOURCES

Human resources remain an important component of the Companys operations, particularly considering the specialised nature of aviation training and related services.

The Company seeks to maintain an appropriately skilled workforce and promote a professional working environment. The Management recognises that employee capability, training, experience and retention are important to maintaining service quality and supporting the Companys growth objectives.

The Company remains committed to employee development, compliance with applicable employment laws and maintaining a safe and professional workplace.

15. CORPORATE GOVERNANCE

The Company places significant emphasis on sound corporate governance, transparency, accountability and ethical business practices.

Following its listing on NSE Emerge, the Company has continued to strengthen its governance and compliance framework in accordance with applicable provisions of the Companies Act, 2013 and SEBI Listing Regulations.

The Company has constituted the requisite Board Committees and has established appropriate mechanisms for oversight, compliance and stakeholder engagement.

The Company also maintains a Vigil Mechanism to enable Directors and employees to report genuine concerns relating to unethical practices, suspected fraud, misconduct or mismanagement.

16. TECHNOLOGY AND DIGITAL INFRASTRUCTURE

Technology continues to play an important role in the aviation training and related services ecosystem.

The Company recognises the importance of maintaining appropriate technology infrastructure and cybersecurity controls. The Company has implemented measures relating to data protection, access controls, encryption, cybersecurity awareness and response mechanisms with the objective of protecting stakeholder information and supporting business continuity.

17. CAUTIONARY STATEMENT

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

These statements are based on certain assumptions and expectations concerning future events and are subject to various risks, uncertainties and other factors. Actual results may differ materially from those expressed or implied in such forward-looking statements.

The Company assumes no obligation to publicly update or revise any forward-looking statement as a result of future events or developments, except as may be required under applicable laws and regulations.

18. MANAGEMENTS CONCLUSION

The Management believes that FY 2025–26 was a year of resilient financial and operational performance for the Company. Total income increased by approximately 9.20% and Profit After Tax increased by approximately 6.06% over the previous financial year.

The Company enters the next financial year with a focus on strengthening its aviation training and MRO capabilities, improving operational efficiency, maintaining strong regulatory and corporate governance standards and pursuing sustainable business growth.

The Management remains committed to creating long-term value for shareholders and other stakeholders while maintaining prudent financial discipline and appropriate risk management.