Glittek Granites Ltd Management Discussions

Prepared pursuant to Regulation 34(3) read with Part B of Schedule V to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

This Management Discussion and Analysis (“MD&A”) should be read in conjunction with the Audited Financial Statements of Glittek Granites Limited (“the Company”) for the financial year ended March 31, 2026, together with the notes thereto. Unless otherwise stated, the discussion relates to the Company’s standalone operations. During FY 2025-26, the Company operated in a single reportable segment, namely, dealing in granite.

1. Economic and Industry Overview:

Global and Indian operating environment

Demand for natural stone products is linked to construction activity, housing and commercial real-estate investment, renovation expenditure and infrastructure development. The industry remains fragmented and competitive, with purchasing decisions influenced by colour and design preferences, product consistency, processing quality, lead times, freight costs and price. Export-oriented participants are additionally exposed to global growth conditions, currency movements, geopolitical disruption, shipping availability and trade-policy changes.

India benefits from a broad natural-stone resource base, established processing capabilities and access to domestic and export markets. At the same time, the sector faces structural challenges arising from volatility in raw-material availability and logistics costs, competition from engineered stone, quartz and ceramic alternatives, environmental and mining-related regulation, working-capital intensity and changing customer preferences. Producers with disciplined sourcing, quality control, product development and customer responsiveness are better placed to navigate these conditions.

2. Company Overview and Developments:

The Company has historically been engaged in the dealing of granite products in the form of slabs and tiles. Its products are used in flooring, wall cladding, countertops and other architectural applications. During FY 202526, the Company continued to report its operations as a single business segment under Ind AS 108.

During the year, the Company substantially completed the monetisation of old, non-moving inventory and reduced inventory to Nil as of March 31, 2026. While the disposal at scrap value and limited operating activity affected revenue and profitability for the year, the exercise streamlined the legacy inventory position. The Company also repaid the outstanding unsecured loans from Directors and closed the year with no borrowings, providing a cleaner balance sheet base for the new management’s strategic initiatives.

Change in control and post-year-end diversification

A Share Purchase Agreement was executed on January 6, 2026 for the acquisition of 1,63,51,010 equity shares representing 62.99% of the fully diluted equity share capital of the Company. Following completion of the mandatory open offer, the Acquirers held, in aggregate, 1,83,24,613 equity shares representing 70.59% of the fully diluted equity share capital. The resulting change in control, together with the reconstitution of the Board and Key Managerial Personnel with effect from June 25, 2026, marks a new phase for the Company, with renewed promoter commitment, strategic direction and management oversight. At its meeting held on June 25, 2026, the Board of Directors approved, subject to the requisite approval of the members and other applicable statutory and regulatory approvals, the proposed diversification of the Company’s business; alteration of the Main Objects Clause and Name Clause of the Memorandum of Association; and shifting of the Registered Office from the State of Karnataka to the State of Maharashtra. These proposals are intended to align the Company’s constitutional documents, identity and administrative base with its evolving business strategy. Upon receipt of the requisite approvals, the Company proposes to commence the new business activities and progressively build a diversified operating platform.

3. Industry Structure and Developments:

During FY 2025-26, the Company continued to operate in the granite business, which remained its sole operating business during the reporting period. The granite industry is influenced by construction and real- estate activity, infrastructure spending, renovation and replacement demand, export markets, freight and logistics costs, product quality, design preferences and competition from domestic and international suppliers. The Company’s operating activity during the year remained limited and, accordingly, its performance was not representative of a normal operating cycle for the granite business. The proposed BESS and allied renewable- energy activities were approved only after March 31, 2026 and therefore did not contribute to FY 2025-26 results.

4. Opportunities and Threats:

Opportunities

• The proposed diversification represents a significant opportunity to expand beyond the legacy granite business and build additional revenue streams in sectors with long-term growth potential. Subject to receipt of the requisite approvals, the proposed alteration of the Main Objects Clause of the Memorandum of Association will provide the corporate framework needed to pursue these new activities in a structured and phased manner.

• The change in control and reconstitution of the Board and Key Managerial Personnel bring renewed promoter focus and an opportunity to establish a clear strategic roadmap, strengthen governance and managerial capabilities, optimise the deployment of financial and other resources, and evaluate scalable markets and business models.

• The proposed diversification into Battery Energy Storage Systems (“BESS”), solar photovoltaic and allied renewable-energy activities positions the Company to explore opportunities arising from the expansion of renewable-energy capacity, grid-balancing requirements, commercial and industrial energy management, and growing demand for dependable energy-storage solutions.

• The proposed combination of engineering, procurement and construction, balance-of-system contracting, operations and maintenance services, and trading activities is designed to create multiple potential revenue streams and support enduring relationships with customers, technology providers, suppliers and project developers.

• The proposed shifting of the Registered Office from the State of Karnataka to the State of Maharashtra is expected to facilitate closer coordination with the new management, improve access to financial and commercial centres, and support efficient administration and implementation of the Company’s proposed business plans.

Threats and Concerns

• The proposed diversification involves entry into technically specialised businesses and will require the Company to develop new operating capabilities. Management intends to address this transition through phased implementation, recruitment and retention of qualified personnel, appropriate technology partnerships, development of supply-chain and customer relationships, and disciplined project execution.

• The proposed businesses are capital-intensive and may require investment in land, buildings, plant and machinery, technology, inventory and working capital. The Company proposes to calibrate the scale and phasing of investment to available resources and financing on commercially acceptable terms, with a view to maintaining financial discipline while implementing the projects.

• The proposed activities are subject to statutory, regulatory, environmental, land-use, safety and sector-specific approvals. Management intends to integrate regulatory planning and compliance into project development; nevertheless, the timing of approvals and changes in applicable policies or regulations may influence implementation schedules and operations.

• The Company will operate in competitive markets that include established domestic and international participants. Management proposes to build its position through focused execution, suitable technology and supply-chain relationships, customer responsiveness, cost discipline and differentiated service offerings; however, competition may affect order acquisition and margins.

• The Company believes that the new promoter and management framework, its debt-free position at the reporting date and the proposed phased approach provide a constructive foundation for diversification. Realisation of the anticipated benefits will depend on timely execution, availability of finance, market acceptance, cost control, regulatory compliance and the broader economic and industry environment.

5. Segment-wise and Product-wise Performance:

During FY 2025-26, the Company operated in a single reportable segment namely, dealing in granite. The Company did not have any other operating segment or product line contributing to revenue during the year. Revenue from operations was ?4.68 lakh compared with ^203.63 lakh in FY 2024-25. Limited operating activity and the disposal of old, non-moving inventory at scrap value resulted in an operating loss; however, the exercise substantially cleared legacy inventory. As the proposed BESS and allied activities were approved after the reporting date, they did not form a reportable operating segment or contribute to the financial performance for FY 2025-26.

6. Financial Performance:

The Audited Standalone Financial Results for the year ended March 31, 2026 reflect a year of limited legacy operating activity and balance-sheet rationalisation. Revenue from operations was ?4.68 lakh and other income was ^135.90 lakh, resulting in total income of ^140.59 lakh, compared with ^203.63 lakh, ^3,126.28 lakh and ^3,329.91 lakh, respectively, in FY 2024-25; the previous year included significant income from the disposal of fixed assets. The Company recorded an EBITDA loss of ^34.47 lakh and a loss before and after tax of ^39.45 lakh, while finance cost and depreciation and amortisation reduced to ?4.43 lakh and ?0.55 lakh, respectively. As at March 31, 2026, total assets stood at ^1,099.14 lakh, net worth at ^1,094.38 lakh and cash and cash equivalents at ^658.73 lakh. Importantly, current liabilities reduced substantially and the Company had no borrowings at year end, providing a streamlined financial base for the new management and the proposed phased diversification.

Revenue and profitability: Revenue from operations declined by approximately 97.70% from ^203.63 lakh in FY 2024-25 to ?4.68 lakh in FY 2025-26, reflecting the limited level of legacy operating activity and the disposal of old, non-moving inventory at scrap value. Other income declined by approximately 95.65% from ^3,126.28 lakh to ^135.90 lakh, primarily because the previous year included significant income from disposal of fixed assets. Consequently, total income declined by approximately 95.78% from ^3,329.91 lakh to ^140.59 lakh, and the Company reported a loss before and after tax of ^39.45 lakh as against a profit in the previous year. The year also involved balance-sheet rationalisation ahead of the change in management and the proposed diversification.

Balance sheet and liquidity: Total assets stood at ^1,099.14 lakh. The Company retained cash and cash equivalents of ^658.73 lakh, while current liabilities reduced substantially from ^166.29 lakh to ?4.76 lakh, mainly due to settlement of trade and other liabilities. With no borrowings as at March 31, 2026, the Company entered the new management phase with a strong liquidity position and low balance-sheet leverage, while recognising that the proposed diversification will require prudent capital allocation and funding.

Cash flows: Net cash used in operating activities was ^218.63 lakh. Investing activities reflected investment purchases and proceeds from the sale of fixed assets and investments, while financing activities included repayment of unsecured loans and payment of finance costs. After these movements, cash and cash equivalents stood at ^658.73 lakh at year end, providing liquidity to support evaluation and phased implementation of future opportunities.

7. Key Financial Ratios

Ratios that could be derived consistently from the published audited financial results are presented below. Ratios that are not meaningful because the relevant balance or denominator was nil have been identified accordingly.

Ratio	FY 2025-26	FY 2024-25	Change / explanation
Debtors Turnover	0.00	1.33	Decrease of more than 25%, primarily due to the significant decline in revenue from operations and nil trade receivables outstanding at year end.
Inventory Turnover	0.00	2.08	Decrease of more than 25%, primarily due to the limited operating activity and nil inventory outstanding at March 31, 2026.
Interest Coverage Ratio	Not meaningful	(7.91)	Not meaningful for FY 2025-26 due to the loss incurred and absence of borrowings / material finance cost at year end.
Current Ratio	197.81	6.17	Increase of more than 25%, primarily due to substantial reduction in current liabilities from ?166.29 lakh to ?4.76 lakh.
Debt Equity Ratio	Nil	Nil	No borrowings were outstanding at either year end.
Operating Profit Margin (%)	Not meaningful	Not meaningful	Not meaningful / not comparable due to the negligible revenue from operations and operating loss in FY 2025-26.
Net Profit Margin (%)	-28.06%	20.60%	Change of more than 25%, primarily due to the significant decline in revenue from operations and the resulting net loss in FY 2025-26.
Return on Net Worth (%)	(3.15)	83.14	Decrease of more than 25%, primarily due to the loss incurred in FY 2025-26 as against profit in FY 2024-25.

The above ratios have been selected to address the key financial ratios specified under Regulation 34 read with Schedule V of the SEBI LODR Regulations. Where a ratio is not meaningful or not comparable because the relevant denominator is nil or the underlying operating activity is negligible, the same has been stated. Significant changes of 25% or more from the immediately preceding financial year have been explained above.

Formula basis: current assets/current liabilities; EBIT/fmance cost for interest coverage; EBITDA/revenue from operations for operating profit margin; PAT/revenue from operations for net profit margin; and PAT/closing net worth for return on closing net worth. The figures should be read with the audited financial statements and notes.

8. Outlook:

The Company will continue to evaluate commercially viable opportunities in the granite business across domestic and export markets, with emphasis on rebuilding operating volumes, optimising the product and customer mix, maintaining quality and delivery performance, and managing costs. Under the renewed promoter and management framework, the legacy business will be assessed alongside the Company’s broader diversification strategy, with a disciplined approach to working capital and capital expenditure.

The proposed diversification into BESS and allied renewable-energy activities is intended to create a scalable new growth platform aligned with the expanding renewable-energy ecosystem. Based on the current working assessment, the Board has indicated an estimated project cost of approximately ?150 crore, inclusive of the proposed underlying land acquisition. Management proposes a phased and disciplined implementation approach, with actual investment and timing determined by project configuration, financing, technology and equipment selection, infrastructure requirements, customer demand, and receipt of statutory and regulatory approvals. The initiative is at a preparatory stage and, while its future contribution cannot presently be quantified with certainty, the Company views it as an important component of its long-term growth strategy.

9. Risks and Concerns:

The Board and the new management recognise that sustainable growth requires proactive identification and management of risk. The principal risks being monitored include:

Business and demand risk arising from low operating volumes and dependence on construction and real-estate activity.

Execution risk in restarting or scaling granite operations and implementing the proposed BESS project. Funding and liquidity risk associated with the proposed capital-intensive diversification.

Technology and supply-chain risk relating to battery cells, equipment, warranties, safety standards and rapid technological change.

Regulatory and compliance risk across company law, securities law, environmental, land, labour, taxation, foreign trade and sector-specific approvals.

Commodity, freight, foreign-exchange and counterparty-credit risks.

Information-security and cyber risk affecting systems, data and business continuity.

Health, safety and environmental risks inherent in industrial and project operations.

The Company’s risk-management approach includes Board and Committee oversight, approval controls, financial monitoring, legal and technical due diligence, segregation of duties, insurance where appropriate, vendor and customer assessment, contractual protections, and periodic review of policies and compliance systems. As the new activities progress, management intends to scale these measures in line with the nature and complexity of operations.

10. Internal Control Systems and Their Adequacy:

The Company has established internal control systems commensurate with its present size and nature of operations. The framework includes documented authorisation limits, financial and operational controls, periodic reconciliations, safeguarding of assets, compliance monitoring and management review. Internal financial controls are designed to provide reasonable assurance regarding the reliability of financial reporting, maintenance of accounting records and preparation of financial statements in accordance with applicable accounting standards.

The Audit Committee reviews the adequacy and effectiveness of internal controls, audit observations and corrective actions. As the Company progresses with its proposed diversification, management intends to strengthen and scale the control environment across project governance, procurement, capital expenditure, technology, inventory, health and safety, cybersecurity and regulatory compliance. The Statutory Auditors’ opinion was not modified. However, the auditors drew attention to the non-provision and non-payment of interest on delayed payments to micro and small enterprises, the financial impact of which had not been quantified as at the date of their report. Management is evaluating the matter and will take appropriate corrective and compliance measures, including assessment and provision of any liability that may become payable, based on the applicable legal requirements and supporting information.

11. Human Resources and Industrial Relations:

The Company recognises that competent and engaged employees are important to operating discipline, quality, customer service and successful implementation of its future plans. Employee relations remained cordial throughout the year under review. As of March 31, 2026, the Company had 11 employees. The Company continued to focus on appropriate deployment of personnel, compliance with applicable labour laws and maintenance of a safe and respectful workplace.

The proposed BESS and allied businesses will create opportunities to build capabilities in battery technology, project engineering, procurement, quality assurance, safety, commercial management, finance and regulatory compliance. The Company intends to support implementation through targeted recruitment, training, leadership development and retention of appropriately qualified personnel, fostering a performance-oriented and compliant organization.

12. Disclosure Of Accounting Treatment:

The financial statements for FY 2025-26 have been prepared in accordance with the applicable Indian Accounting Standards (Ind AS) and other applicable requirements. No treatment different from that prescribed under the applicable Accounting Standards has been followed in the preparation of the financial statements. Accordingly, no alternative accounting treatment requiring disclosure under the applicable SEBI Listing Regulations is reported.

13. Cautionary Statement:

This MD&A contains forward-looking statements concerning the Company’s objectives, strategies, plans, expectations and future performance. These statements are based on assumptions and expectations considered reasonable at the date of this Report but are subject to risks and uncertainties. Actual results may differ materially due to changes in economic conditions, demand, prices, competition, availability and cost of finance, technology, supply chains, laws and regulations, receipt of approvals, project execution and other factors. The Company does not undertake to update any forward-looking statement except as required by applicable law.