GEE Ltd Management Discussions

The Management of GEE Limited is pleased to present the Management Discussion and Analysis Report for the financial year ended 31 March 2026. This discussion should be read in conjunction with the Companys audited financial statements, notes thereto and other sections forming part of the Annual Report. Statements made herein describing the Companys objectives, projections, estimates and expectations may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied due to various risks and uncertainties.

1. Economic Overview

During FY 2025-26, the global economy demonstrated moderate growth amidst persistent geopolitical uncertainties, inflationary pressures, fluctuating commodity prices and evolving trade policies. Central banks across major economies continued to calibrate monetary policies to balance inflation control with economic growth.

The Indian economy continued to remain among the fastest-growing major economies, supported by strong domestic demand, increased capital expenditure, robust infrastructure development, manufacturing expansion and favorable government policies under initiatives such as Make in India, Production Linked Incentive (PLI) Schemes and National Infrastructure Pipeline. The continued emphasis on manufacturing, energy, railways, defence and infrastructure provided significant opportunities for engineering and industrial product manufacturers.

2. Industry Structure and Developments

The welding consumables and engineering industry continues to play a critical role in infrastructure, construction, power, oil & gas, shipbuilding, railways, heavy engineering and manufacturing sectors. Increased investments in public infrastructure, transportation, renewable energy, defence manufacturing and industrial automation are expected to drive sustained demand for welding products.

However, the industry continues to face challenges arising from volatile raw material prices, global supply chain disruptions, increasing competition from domestic and international manufacturers, pricing pressures and changing customer preferences.

The Company continues to focus on product quality, customer relationships, operational efficiency and value-added product offerings to strengthen its market position.

3. Business Performance

During the year under review, the Company continued its focus on operational excellence, customer satisfaction and sustainable growth despite a dynamic business environment.

The Companys revenue from operations for FY 2025-26 stood at Rs. 37,033.63 Lakhs , as compared to Rs. 33,410.71 Lakhs during the previous financial year, representing an increase of 10.84% over the previous financial year.

Profit After Tax stood at Rs. 1,299.86 Lakhs compared to a Loss of Rs.924.03 Lakhs in FY 2024-25, representing an increase of 40.67% over the previous financial year.

The Companys performance was supported by continued customer confidence, improved operational efficiencies, prudent cost management and focus on quality products.

4. Opportunities and Threats Opportunities

- Continued Government investment in infrastructure projects.

- Growth in manufacturing under Make in India initiatives.

- Expansion in renewable energy and power sectors.

- Increasing demand from railways, defence and heavy engineering industries.

- Export opportunities in emerging international markets.

- Technological advancements and automation in welding solutions.

Threats

- Volatility in prices of steel, ferro alloys and other raw materials.

- Intense competition from organised and unorganised sectors.

- Foreign exchange fluctuations.

- Global geopolitical uncertainties.

- Supply chain disruptions.

- Changes in environmental and regulatory requirements.

5. Segment-wise Performance

The Company operates primarily in the manufacturing and marketing of welding consumables and related products. The Companys operations are considered under a single reportable business segment in accordance with the applicable Indian Accounting Standards.

6. Outlook

The long-term outlook for the Company remains positive considering the Governments continued emphasis on infrastructure development, manufacturing growth, defence production, railway modernization and energy sector expansion.

The Company remains focused on:

- strengthening its market presence;

- expanding customer relationships;

- improving operational efficiencies;

- introducing value-added products;

- enhancing quality standards;

- improving profitability through effective cost management.

The management remains cautiously optimistic about future growth while continuously monitoring domestic and global economic developments.

7. Risks and Concerns

The Company has established a comprehensive risk management framework to identify, evaluate and mitigate various business risks.

The key risks include:

- Raw material price volatility.

- Supply chain disruptions.

- Credit risk.

- Liquidity risk.

- Competition and pricing pressures.

- Regulatory and statutory compliance risks.

- Information technology and cyber security risks.

- Human resource risks.

- Environmental, health and safety risks.

The Companys risk management processes are periodically reviewed by the management and the Board of Directors.

8. Internal Control Systems and their Adequacy

The Company has adequate internal control systems commensurate with the size, scale and complexity of its operations. The internal control framework ensures:

- safeguarding of assets;

- accuracy and reliability of accounting records;

- compliance with applicable laws and regulations;

- efficient utilisation of resources;

- prevention and detection of frauds and errors.

The Internal Auditors conduct periodic audits based on a risk-based audit plan approved by the Audit Committee. Significant observations and corrective actions are regularly reviewed by the Audit Committee and the Board of Directors.

9. Financial Performance with respect to Operational Performance

The Company maintained financial discipline during the year through effective working capital management and prudent utilisation of financial resources.

Key financial indicators are summarized below:

(Rs. In Lakhs)

Particulars	FY 2025-26	FY 2024-25
Revenue from Operations	37,033.63	33,410.71
EBITDA	3125.68	110.11
Profit Before Tax	1,896.53	(1,196.39)
Profit After Tax	1299.86	(924.03)
Net Worth	14,515.50	12,212.64

The management continues to focus on improving operational efficiency, productivity enhancement, inventory optimisation and cost rationalisation to strengthen financial performance.

10. Human Resources

The Company firmly believes that its employees are its most valuable asset. It continues to invest in employee development through structured training programmes, skill enhancement initiatives, leadership development and performance management systems.

Industrial relations remained cordial throughout the year. As on 31 March 2026, the Company had 402 employees on its rolls.

The Company continues to promote a safe, inclusive, ethical and performance-driven work culture while ensuring compliance with all applicable labour laws and occupational health and safety standards.

11. Sustainability, Health, Safety and Environment

The Company remains committed to conducting its operations in an environmentally responsible manner. It continues to focus on resource conservation, energy efficiency, waste management, pollution control and workplace safety.

The Company promotes a strong safety culture through regular awareness programmes, training and compliance with applicable environmental and safety regulations.

12. Details Of Significant Changes (I.e. Change Of 25% Or More As Compared to The Immediately Previous Financial Year) in Key Financial Ratios

During the financial year 2025-26, GEE Limited witnessed notable movements in several key financial ratios compared to the previous year. These changes primarily reflect the impact of increased input costs, pricing pressures, and adjustments in investment valuations.

	31st March, 2026	31st March, 2025	Reasons
1. Debts Service Coverage Ratio	3.33	0.92	Improved primarily due to an increase in profit after tax and other cash available for debt servicing relative to debt service obligation.
2. Return on Equity	0.06	(0.05)	The increase in ROE is primarily attributable to the improvement in profit after tax, resulting in a positive return on shareholders equity compared with the negative return in the previous period.
3. Net Profit Ratio	0.04	(0.03)	Improved from a negative margin of 2.77% to a positive margin of 3.52%, primarily due to the increase in profit after tax.
4. Return on Capital Employed	0.11	(0.02)	The improvement in ROCE is primarily attributable to the increase in profit before interest and tax, resulting in a positive return on capital employed compared with the negative return in the previous period.
5. Return on Investment	0.06	(0.20)	The improvement in ROI is primarily attributable to an increase in fair-value changes during the current period.
6. Net Capital Turnover Ratio	4.09	10.80	Decreased due to Reduction in Working Capital Borrowings.

13. Cautionary Statement

Statements in this Management Discussion and Analysis Report describing the Companys objectives, estimates, expectations or predictions may be forward-looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied due to changes in economic conditions, government policies, taxation, market demand, competition, raw material prices, exchange rate fluctuations and other incidental factors beyond the control of the Company.

For and on behalf of the Board of Directors of GEE Limited

Mr.Umesh Agarwal

Joint Managing Director DIN: 01209962