Gita Renewable Energy Ltd Management Discussions

1. ECONOMIC REVIEW

GLOBAL ECONOMY

Global economic growth is estimated at around 3.1% for 2026, supported by resilient consumption, easing financial conditions and front-loaded trade activity, even as tariff-related uncertainty and geopolitical tensions continue to weigh on the outlook ( IMF, World Economic Outlook, 2026 ). The global energy transition reached a structural inflection point during the year: worldwide investment in clean energy renewables, nuclear, grids, storage and electrification is estimated at USD 2.2 trillion in 2026, nearly double the USD 1.2 trillion directed to oil, gas and coal, and renewables overtook coal for the first time to supply over a third of the worlds electricity IEA, World Energy Investment 2026; Ember, Global Electricity Review 2026).

INDIAN ECONOMY

India remained among the fastest-growing major economies, with GDP estimated to have grown by around 7.4% in FY2025-26 per the National Statistics Offices first advance estimates, before moderating to about 6.4% in FY2026-27 as cyclical tailwinds fade ( National Statistics Office; IMF, World Economic Outlook, 2026 ). On the energy front, India added over 55 GW of non-fossil generation capacity during FY2025-26 its highest-ever annual addition taking cumulative non-fossil capacity past 283 GW and total installed renewable energy capacity ( including large hydro ) to over 275 GW as of 31 March 2026, the third-largest such base in the world; installed solar capacity crossed 150 GW during the year ( Ministry of New and Renewable Energy; IRENA, Renewable Energy Statistics 2026 ).

OUTLOOK

India continues to pursue its target of 500 GW of non-fossil generation capacity by 2030, supported during the year by a reduction in GST on renewable energy devices and components from 12% to 5% ( effective September 2025 ), extended customs-duty relief for lithium-ion cell manufacturing, and a new import-monitoring system for renewable equipment. Sustained policy support and domestic manufacturing capacity build-out are expected to keep capacity addition strong, although trade and geopolitical uncertainty, commodity-price volatility and financing constraints for large projects remain key risks for the sector.

2. INDUSTRY OVERVIEW

GLOBAL RENEWABLE ENERGY INDUSTRY

With clean energy now drawing close to twice the capital flowing into fossil fuels, the global industry is entering a phase where energy security and cost-competitiveness, and not climate policy alone, are driving investment decisions ( IEA, World Energy Investment 2026 ). Solar photovoltaics alone is estimated to attract over USD 500 billion of investment in 2026 more than any other generation technology while supply-chain diversification and grid/storage build-out remain central themes as renewable penetration deepens across major markets.

INDIA RENEWABLE ENERGY MARKET

Indias renewable energy sector recorded its strongest year yet in FY2025-26, adding an estimated 44

45 GW of solar and around 6 GW of wind capacity ( Ministry of New and Renewable Energy, March 2026 update ). Domestic solar module manufacturing capacity also expanded sharply, from around 2.3 GW in 2014 to approximately 172 GW by March 2026. The sector continues to face project execution delays, transmission and grid-connectivity constraints following the expiry of inter-state transmission-charge waivers, and financing hurdles for large-scale and offshore projects, even as central agencies increasingly favour round-the-clock and firm dispatchable renewable supply.

3. COMPANY OVERVIEW

Gita Renewable Energy Limited ( GREL/ the Company ) continues to operate as a pure-play, end-to-end renewable energy engineering, procurement and construction ( EPC ) solutions provider, focused on project design, engineering and execution management from conceptualisation to commissioning, together with Operations & Maintenance ( O&M ) services for own projects and those executed by third parties.

4. INTERNAL CONTROL SYSTEMS

The Companys internal control systems continued to operate effectively during the year under review.

The Board of Directors, the Audit Committee and senior management remained actively engaged in ensuring that financial and operating controls, including those over financial reporting, operated as intended and remained commensurate with the size and nature of the Companys operations. There was no material weakness was identified/reported by the Statutory Auditor or in the Internal Financial Controls review for FY2025-26

5. FINANCIAL AND OPERATIONAL PERFORMANCE

The Companys did not generate any revenue from operations for FY2025-26 as against Rs. 5,60,000 recorded in FY2024-25, representing a slump in revenue generation. The key financial ratios required to be disclosed under Schedule V to the SEBI ( Listing Obligations and Disclosure Requirements ) Regulations, 2015 are set out below:

The Company had no outstanding debt/ borrowings as at 31 st March 2026; hence Debt-Equity Ratio and Debt Service Coverage Ratio were not applicable.

6. HUMAN RESOURCE DEVELOPMENT

There were no material developments in human resources during FY2025-26 The total number of employees as on 31 st March 2026 is 4 as compared to 6 in the previous year.