Hilton Metal Forging Ltd Management Discussions

The India metal forging market size was valued at USD 4.43 billion in 2022 and is expected to grow from USD 5.08 billion in 2023 to USD 9.75 billion by 2030, exhibiting a CAGR of 9.8% during the forecast period. Moreover, the metal forging market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 2.66 billion by 2032, driven by higher consumption of forged metals by automotive and construction industry. Developed in the past, forging is a process of metal forming that has evolved through the integration of innovative techniques. In the process, a metal is deformed with the use of compressive forces such as hammering, rolling, and pressing in controlled conditions for giving the material a desired geometric change. The process produces high-quality metal parts consisting of alloy steel, stainless steel, and aluminum alloys with enhanced material strength. The forging process offers a wide range of forging components having different materials, shapes, finishes, and sizes.

In India, forging OEMs offer closed-die forged solutions that are used in the automotive industry. Indias market share in automotive forging is higher than other industries such as industrial machinery, railway, aerospace and defence, and others. The rising demand for the product is due to its application in construction, mechanical equipment, oil & gas, automotive, and aerospace, driving the market growth during the forecast period.

Source: https://www.fortunebusinessinsights.com/india-metal-forging-market-106788

INDIA METAL FORGING MARKET TRENDS

Rising Adoption of Automation in Manufacturing to Drive Market Growth

Increasing adoption of the Industry 4.0 by key players in India metal forging industry to improve efficiency is the ongoing trend in the market. Industry 4.0 is the latest phase in manufacturing digitalization that involves multiple innovations that can be utilized through enhanced connectivity, processing power, and data analysis. The metal forging industry in India is not much developed in terms of advanced technologies. However, companies such as Bharat Forge, Sansera, and a few others have already adopted

Industry 4.0 for their forging lines to boost efficiency. addition, collaborative research by partnering suppliers, end users, government, institutes, and other forging companies to enhance or develop significant technologies is an essential strategy adopted by different OEMs in the forging industry. The rising research and development activities by forging OEMs will aid the India metal forging market growth during the forecast period.

INDIA METAL FORGING MARKET GROWTH FACTORS Increasing Demand for Forged Products in Power, Agriculture, Aerospace, and Defense to Drive Industry Expansion

Indian metal forging industry majorly caters to the high demand for forged products in the automotive sector. However, the recent slowdown in the automotive sector has diverted the focus of the leading metal forging key players on expanding their product portfolio for other non-automotive industries where the demand for forged products is increasing. These non-automotive industries include agriculture, power, and aerospace and defense. Hence, increasing investment and expansion of these sectors is positively influencing the require various high-quality and lightweight metal forged parts. Therefore, increasing demand for critical forged products in the aerospace & defense industry is likely to drive the market growth.

Increasing Export of Forging Products to Drive Market Growth Globally, India is considered one of the major forging production hubs. The increase in domestic manufacturing capacity and competitiveness is helping Indias exports grow rapidly. According to the Engineering Export Promotion Council of India (EEPC), the forging sector is one of the key sectors for export growth. In addition, government initiatives such as Make in India has boosted the manufacturing industry in the region by creating a positive business environment. The key players operating in the Indian metal forging industry are bagging export orders from various economies, which is likely to drive the market growth in India.

Source: https://www.fortunebusinessinsights.com/india-metal-forging-market-106788

Installation Capacity Analysis

Small (100 MT to 12,500 MT) Segment Leads Installation Capacity Due to Rising Demand for Small Forging Parts. Based on installation capacity, the market is segmented into small (100 MT to 12,500 MT), medium (12,500 to 30,000 MT), and heavy (above 30,000 MT). The small (100 MT to 12,500 MT) segment holds the largest market share. The small installation capacity segment comprises forging units with a capacity of 100 MT to 12,500 MT. Most of the automotive parts are produced with the help of small installation capacity-based solutions. The rising demand for small forged parts such as connecting rods, yoke ends, rocker arms, control arms, and others boost the growth of the small installation capacity segment. The medium (12,500 to 30,000 MT) installation segment is anticipated to witness the fastest growth rate during the forecast period. This is due to the inclining focus of players to diversify their product portfolio for non-automotive industries such as industrial machinery, aerospace, mining equipment, and others.

Source: https://www.fortunebusinessinsights.com/india-metal-forging-market-106788

RESTRAINING FACTORS

Electrification in Automotive Industry to Slow Down the Market Growth

The domestic automotive industry in India is the leading customer for forged products and parts. Approximately more than 60% of the forging units in India are involved in . The aerospace industry automotive component manufacturing. Therefore, the Indian metal forging market is highly dependent on the domestic automotive industry. Currently, the automotive industry is going through once in a century revolution. Rising environmental concerns, government initiatives to promote green mobility, an increasing number of stringent emission regulations, and rising fuel prices are driving electrification in the automotive industry. Nearly all the leading automakers are focused on developing electric vehicles as future mobility solutions. However, electric vehicles have fewer moving parts and forged components compared to conventional vehicles. Thus, the developments in the domestic automotive industry are likely to hamper the growth of the India metal forging market during the forecast period.

Source: https://www.fortunebusinessinsights.com/india-metal-forging-market-106788

Railways Sector

India has the fourth-largest railway system in the world, after the US, Russia, and China, and remains a backbone of national connectivity and logistics. As of FY24, Indian Railways operated 13,523 passenger trains and 11,724 freight trains daily across a route network of 68,584 kms, with passenger trains averaging 50.6 kmph and freight trains 24 kmph. The sector has witnessed rapid development, strong investments, and continued government support in recent years. By FY25, a total of 34,000 kms of new railway tracks had been added nationwide, significantly expanding capacity. At the same time, major corridor upgrades are underway: the Delhi-Mumbai and Delhi-Howrah routes are being upgraded to 160 kmph, while new 3rd and 4th lines are being laid on key sections. Dedicated freight corridors have been commissioned to reduce congestion and improve efficiency.

Sustainability and innovation are also shaping the sector. Indian Railways has expanded its solar power capacity to 2,249 installations across stations and service buildings, with 1,489 units added in the last five years, 2.3 times more than the preceding period. In a private-sector initiative, DP World and Reliance Industries Limited (RIL) launched a logistics solution shifting petrochemical transport from road to rail, reducing carbon emissions while linking RILs Jamnagar plant in Gujarat to DP Worlds ICD in Ahmedabad and onward to Mundra Port. Looking ahead, massive investments are set to transform the sector. Indian Railways plans to invest Rs. 16,70,000 crore (US$ 193.98 billion) by 2031 to modernise 1,309 stations, expand freight corridors, electrify tracks, and develop new high-speed projects. The Union Cabinet has also cleared multiple regional projects: four infrastructure projects worth Rs. 5,100 crore (US$ 592.4 million) will add 574 kms across six states, boosting freight capacity by 10 million tonnes and benefiting2,309 villages. Two additional projects worth Rs. 6,405 crore (US$ 744 million) will cover 318 kms, enabling the movement of 49.3 million tonnes of freight while saving 520 million litres of diesel and cutting 2,640 million kg of CO emissions.

High-speed rail is emerging as a game-changer. The Mumbai-Ahmedabad High-Speed Rail Corridor is under active construction, while India plans four more corridors by 2035 to strengthen capacity and drive growth. Andhra Pradesh has also proposed a South India bullet train corridor connecting Hyderabad, Chennai, Amaravati, and Bengaluru, which would serve over five crore people and stimulate trade, employment, and regional development.

In February 2026, the Union Cabinet approved three railway multi-tracking projects worth Rs. 9,072 crore (US$ 990.34 million) across Maharashtra, Madhya Pradesh, Bihar and Jharkhand, adding around 307 km to the railway network and improving connectivity for 5,407 villages with a population of nearly 98 lakh people. In February 2026, Indian Railways sanctioned infrastructure projects worth Rs. 871 crore (US$ 96 million) across Rajasthan, Kerala and West Bengal to expand maintenance facilities, double key rail sections, and remove operational bottlenecks, strengthening passenger and freight services. In February 2026, the Bengaluru Suburban Rail Project, worth Rs. 23,342 crore (US$ 2.57 billion), advanced as a major urban mobility initiative covering 148 km with 57 stations across four corridors, expected to serve 19 lakh daily passengers and remove around 40,000 buses from city roads, easing congestion and reducing emissions.

Passenger traffic reached a new high of 7.41 billion in FY26, up 3.54% from 7.16 billion in FY25, reflecting sustained growth in rail-based mobility and the continued expansion of Indias mass transit network. Passenger revenue increased by 5.96% to Rs. 800 billion (US$ 9.05 billion) in FY26 from Rs. 755 billion (US$ 8.93 billion) in FY25, supported by higher ridership and improved earnings across passenger services.

Freight loading touched a record 1,670 million tonnes (MT) in FY26, registering a 3.25% year-on-year increase, underscoring the growing reliance on Indian Railways for bulk cargo and long-haul logistics. Freight growth was driven by strong performance in key sectors, with fertiliser loading rising 13.49% and pig iron & steel transportation increasing 13.11%, reflecting continued momentum in agriculture and industrial production. Core infrastructure commodities continued to support freight volumes, with iron ore transportation rising 6.74% to 190.12 MT and cement loading increasing 4.74% to 157.17 MT, indicating sustained infrastructure and construction activity across the country. Freight earnings rose to Rs. 1.78 trillion (US$ 20.11 billion) in FY26, up 1.44% from Rs. 1.75 trillion (US$ 20.73 billion) in FY25, reinforcing Indian Railways pivotal role in Indias logistics and economic growth ecosystem. In September 2025, India announced plans to invest Rs. 30,000 crore (US$ 3.4 billion) to build 500 km of new strategic railway lines, including bridges and tunnels, near its China border to enhance logistics and defence preparedness.

Indian Railways unveiled its first9,000 HP electric locomotive in April 2025 to boost hauling capacity and operational performance. Indian Railways will launch the first Vande Bharat Sleeper train in September 2025, offering speeds up to 180 kmph. With features like USB charging, modular pantries, enhanced safety, and showers in 1st AC coaches, it aims to redefine long-distance rail travel.

In March 2024, Prime Minister Mr. Narendra Modi inaugurated infrastructure projects worth Rs. 15,400 crore (US$ 1.84 billion) in Kolkata, including Indias first underwater metro system, to improve connectivity in west Bengal. The Cabinet Committee on Economic Affairs, led by Prime Minister Mr. Narendra Modi, approved two railway projects totalling Rs. 6,798 crore (US$ 808.8 million). These include doubling the 256 km Narkatiaganj-Raxaul-Sitamarhi-Darbhanga and Sitamarhi-Muzaffarpur sections and constructing a 57 km new line from Errupalem to Namburu via Amaravati.

India is in the process of developing high-speed train sets capable of reaching a maximum speed of 280 km/h. These trains are being designed and manufactured by the Integral Coach Factory in collaboration with BEML. Each train car is estimated to cost approximately Rs. 28 crore (US$ 3.2 million) and will incorporate advanced features such as aerodynamic designs, sealed gangways, and modern amenities. India aims to transform Indian Railways into a net-zero emitter as part of its broader energy goals by 2030, as confirmed by Prime Minister Mr. Narendra Modi. Prime Minister, Mr. Narendra Modi inaugurated a significant Indias rail network by introducing 10 new Vande Bharat trains, bringing the total count to over 50 trains covering 45 routes nationwide. Foreign Direct Investment (FDI) inflows in railway-related components stood at Rs. 9,163 crore (US$ 1.43 billion) for April 2000-June 2025.

164 Vande Bharat trains are operational as of December 2025.

As of March 2025, Indian Railways operates more than 13,000 passenger trains, including 4,111 Mail and Express trains, 3,313 Passenger trains, and 5,774 Suburban trains. Indian Railways, as of 2025, has expanded 35,000 km of track, produces 30,000 wagons and 1,500 locomotives annually, increased freight share to 29 %, cut accidents by 80 %, and plans 1,000 new trains and bullet train operations by 2027. Indias freight wagon market is expected to nearly double by 2031, rising to about Rs. 25,000 crore to Rs. 30,000 crore (US$ 2.83 billion to US$ 3.40 billion), driven by exports, technology upgrades and large-scale procurement. Revenue of Indian railway sector companies is expected to grow 5% in FY26, with operating margins around 12 %, supported by government capital outlay of Rs. 2,52,000 crore (US$ 29.41 billion) and a strong order book-to-income ratio of 2.77.

In 2025-26, Railways capital expenditure is targeted at 3,02,000 crore (US$ 34.7 billion).

A wave of on-demand, shared, and electric-powered urban transportation services will generate Rs. 56,44,320 crore (US$ 660 billion) in revenue globally by 2030. Passenger safety and experience have improved with modern trains (Vande Bharat, Amrit Bharat, Namo Bharat), Kavach implementation, elimination of level crossings, 1,337 redeveloped stations, Bharat Gaurav tourist trains, digital payments, and Rolling Blocks for planned maintenance. Indian Railways is modernising its long-standing train control systems to enhance safety, improve efficiency, reliable operations across the network.

In December 2023, the Indian Railways introduced the Amrit Bharat Express, a fully non-AC, affordable modern train service for low and middle-income families. As of August 2025, 14 services are in operation with enhanced safety and comfort features.

Indian Railways has boosted operational efficiency by modernising trains and stations, improving punctuality to 80% in FY26, deploying advanced Vande Bharat, Amrit Bharat, and Namo Bharat services, upgrading tracks and signalling, expanding bio-toilet coverage, and streamlining catering, all while maintaining affordable fares for over 720 crore passengers.

From July 2025, introduced Aadhaar-authenticated Tatkal bookings, OTP verification, revised fares, early reservation charts, and agent restrictions to improve passenger convenience and transparency.

The RailOne app, launched on 1 July 2025, offers passengers a single platform for unreserved ticketing, live train tracking, grievance redressal, and other services, while the modern PRS set for December 2025 will handle high-volume bookings efficiently.

The UTS mobile app now covers 9,120 stations, with around 2.34 lakh tickets booked daily, facilitating travel for approximately 14.21 lakh passengers and generating revenue of about Rs. 1.33 crore (US$ 1,54,490) each day.

Over 21,800 track km (TKM) of Indian Railways are now fit to run semi-high-speed trains of 130 km per hr in India, as per an internal report of the Ministry.

Around 76% of the excavation work has been completed on the Mumbai bullet train station located at Bandra Kurla Complex (BKC), which is the only underground station on the Mumbai-Ahmedabad High-Speed Rail Corridor.

According to the official report, 14.2 lakh cubic metres of the excavation work has been completed. 18.7 lakh cubic metres of earthwork must be excavated from this site.

In a significant move towards enhancing passenger experience by returning the lost/missing mobile phones, the Railway Protection Force (RPF) has successfully on boarded with the Central Equipment Identity Register (CEIR) portal of the Department of Telecommunication. This initiative follows the success of a pilot program in the Northeast Frontier Railway (NFR).

Indian Railways has taken a major step towards automation and efficiency in rolling stock maintenance by signing a Memorandum of Understanding (MoU) with the Delhi Metro Rail Corporation (DMRC) for the procurement and installation and support faster, more of Automatic Wheel Profile Measurement Systems (AWPMS).

The implementation of the PPP model is anticipated to meet the growing demand for mineral and coal transportation, with the development of these corridors—integral to the economic corridor program—projected to attract over 5.25 lakh crore (US$ 60.43 billion) in investments by 2031.

The Government of India launched a dedicated Rail Tech Portal to encourage startups, innovators, industry, and academic institutions to develop technology solutions for Indian Railways, accelerating modernisation and innovation in the sector.

Indian Railways announced that it will fund up to 50% of the development cost for innovative railway technologies, supporting startups and innovators working on solutions for safety, maintenance, and operational efficiency.

The government launched the e-Railway Claims Tribunal (e-RCT) system, enabling 24 × 7 online filing, digital case tracking, and paperless hearings to improve transparency and speed in resolving railway compensation claims across India. The government announced that all 23 benches of the Railway Claims Tribunal will be fully digitised within 12 months, enabling citizens to file claims and access tribunal services online from anywhere in the country.

In November 2025, India and Nepal signed an agreement to strengthen rail trade connectivity to improve freight movement and deepen economic integration between the two countries.

In October 2025, India announced plans to develop Vande Bharat 4.0 with advanced technology and upgraded passenger features, positioning it for global export within the next 18 months.

In September 2025, India announced that it will establish its first rail links with Bhutan through the Kokrajhar to Gelephu and Banarhat to Samtse routes with a total outlay of Rs. 4,033 crore (US$ 454 million).

In June 2023, IRCON (formerly Indian Railways Construction Company Limited) signed a memorandum of understanding (MoU) with the National Investment and Infrastructure Fund Limited and Ayana Renewable Power Limited. This partnership will consider suitable opportunities for solar energy production for the Indian Railways as they intend to increase the share of renewables in their overall energy mix. With a view to improving rail connectivity and ease travel for commuters, the Union Cabinet approved seven projects for the Ministry of Railways in August 2023 at a cost of around Rs. 32,500 crore (US$ 3.93 billion). Spanning 35 districts in nine States - Uttar Pradesh, Bihar, Telangana, Andhra Pradesh, Maharashtra, Gujarat, Odisha, Jharkhand, and West Bengal, the projects will add 2,339 km to the existing network speed. The Rs. 1,800 crore (US$ 209.1 million) Brahma rail coach hub near Bhopal will be developed as a green factory with zero liquid waste, renewable energy use, rainwater harvesting, and sustainable materials, setting new eco-friendly benchmarks in rail manufacturing.

India is in the process of developing high-speed train sets capable of reaching a maximum speed of 280 km/h. These trains are being designed and manufactured by the Integral Coach Factory in collaboration with BEML. Each train car is estimated to cost approximately Rs. 28 crore (US$ 3.2 million) and will incorporate advanced features such as aerodynamic designs, sealed gangways, and modern amenities.

The National High Speed Rail Corporation Limited announced the successful launch of a 100-meter steel girder over four railway tracks in Gujarat for the Mumbai-Ahmedabad bullet train project, facilitating the metal framework installation between Kim and Sayan villages in Surat district.

RailTel, a PSU under the Railway Ministry, which provides fast and free Wi-Fi across the Indian Railways network, announced its highest-ever consolidated income of Rs. 704 crore (US$ 85 million) for Q4 of FY23. This income figure is a growth of 5% over the consolidated income of the same quarter income last year.

Indias export of railways grew at and reached US$ 315 million in FY24 as compared to US$ 173 million in FY21. Since 2016, Indian Railways has exported over 1,000 rail cars, 3,800 bogies, 4,000 flatpacks, and 5,000 propulsion systems to countries including Australia, Canada, Germany, Egypt, Sweden, Brazil, the UK, Saudi Arabia, France, Mexico, Romania, Spain, Italy, Mozambique, Senegal, Sri Lanka, Myanmar, Bangladesh, and the Republic of Guinea, reflecting rapid growth in global exports up to 2025.

Indian Railways plans to market semi-high speed Vande Bharat trains by 2025-26, aiming to cover 10-12 lakh kilometres on 75 trains in three years. Indian Railways will target European, South American, and East Asian markets for exporting Made in India trains.

The Marhowrah Diesel Locomotive Factory in Bihar will export 150 Evolution Series ES43ACmi locomotives to Guineas Simandou iron ore project under Make in India, in a Rs. 3,000 crore (US$ 345.9 million) deal, boosting Indias global railway exports with advanced 4,500 HP locomotives and creating over 2,100 jobs nationwide.

India is expanding its railway manufacturing footprint globally, exporting coaches, bogies, locomotives, and propulsion systems to more than 16 countries, supported by rising orders and successful deliveries from facilities such as the Marhowra plant.

Indian Railways has undertaken a mega-infrastructure project of two Dedicated Freight Corridors (DFC) namely Eastern and Western Dedicated Freight Corridors (EDFC & WDFC) to facilitate the faster evacuation of freight traffic.

As of March 2025, out of the total 2,843 km of Indias DFC, comprising the EDFC from Ludhiana to Sonnagar (1,337 km) and the WDFC from Jawaharlal Nehru Port Terminal to Dadri (1,506 km), 2,741 km (96.4%) has been commissioned and made operational.

The Ministry of Railways plans to monetize assets including Eastern and Western Dedicated Freight Corridors after commissioning, induction of 150 modern rakes through, station redevelopment through PPP, railway land parcels, multifunctional complexes (MFC), railway colonies, hill railways and stadiums.

With increasing participation expected from private players, domestic and foreign, due to favourable policy measures, both passenger and freight traffic is expected to grow rapidly over the medium to long term. The Government of Indias focus on infrastructure is a major factor which will accelerate the growth of railways. Railways infrastructure plans to invest t 50 lakh crore (US$ 715.41 billion) by 2030.

Indian Railways completed eight major capacity enhancement projects by taking advantage of the coronavirus lockdown. These projects included three supercritical projects with a combined length of 68km, three critical projects with a combined length of 45km, the upgradation of the entire 389km railway line from Jhajha in Bihar to Pandit Deen Dayal Upadhyaya junction in Uttar Pradesh and a new 82km port connectivity line to Paradip.

As of March 2025, Indian Railways had electrified (98.83%) of its 69,512 km broad-gauge network, with the remaining 811 km expected to be completed by Q3 FY26. As a part of the Railways plans to upgrade its network, the Ministry announced that all non-AC sleeper coaches will be replaced by AC coaches for trains running >130 kmph. This move has been taken as a technical necessity for high-speed trains with the bonus of improving the passenger experience. As of April 1, 2025, Indian Railways has sanctioned 431 infrastructure projects, including 154 New Line, 33 Gauge Conversion and 244 Doubling, covering 35,966 km at an estimated cost of Rs. 6,75,000 crore (US$ 78.41 billion). Out of this, 12,769 km has been commissioned, with an expenditure of approximately Rs. 2.91 lakh crore up to March 2025.

In an initiative to decarbonise rail transport, Indian Railways is collaborating with public sector enterprises to accelerate track electrification, achieving 45,922 route kilometres (RKM) electrified between 2014 and February than a fivefold increase compared to 21,801 RKM electrified before 2014.The future outlook of the railway sector looks on track with the pandemic easing out.

Railways are leading India s fight against climate challenges and are taking significant steps towards goal of being a net zero carbon emissions organisation by 2030 and meeting Indias Intended Nationally Determined Contributions (INDC) targets.

Indian Railway network is growing at a healthy rate. By 2030, the Indian railway market is expected to be the third largest in the world, accounting for 10% of the global market. 68,701 km Internal Control Systems and their adequacy:

The Company has in place internal financial systems, commensurate with the size and complexity of its operations to ensure proper recording of financial and operational information and compliance of various internal controls and other regulatory and statutory compliances.

The internal auditor monitors and evaluates the efficacy and adequacy of internal control systems in the Company. Based on the report of the internal auditor, respective departments undertake corrective action in their respective areas and thereby strengthen the controls. Significant observations and corrective actions thereon are presented to the Audit Committee of the Board for their perusal.

Financial Performance with respect to operational performance

(Rs. in Lakhs)

Particulars	Year Ended March 2026	Year Ended March 2025
Total revenue	23,201.10	16,822.35
Less: Operating Expenses & Provision	21,908.22	15,284.95
Profit before Interest, Depreciation & Taxes	1,292.88	1,537.40
Less: Depreciation	223.06	222.97
Less: Interest & finance Charges	700.55	704.66
Less: Exceptional Items	-	-
Profit before Tax	369.27	609.77
Less: Provision for Taxation	24.66	-7.87
Profit After Tax	344.61	617.63
Other Comprehensive Income	0	0
Total Comprehensive Income for the Year	0	0
Balance Brought forward	1,200.96	583.33
Balance Available for Appropriation	344.61	617.63
Surplus retained in Profit & Loss account	1,545.57	1,200.96

During the year under review, the total revenue of the company was Rs. 23,201.10 Lakhs as compared to Rs. 16,822.35 Lakhs during the previous year and the PAT is Rs. 344.61 Lakhs as compared to last year s profit of 617.63 Lakhs.

Significant changes in key financial ratios:

Ratios	For FY 25-26	For FY 24-25	Variation
Debtors Turnover	5.81	3.34	More than 25%
Inventory Turnover	2.30	2.00	Less than 25%
Debt Service Coverage Ratio	1.10	1.85	More than 25%
Current Ratio	2.64	1.78	More than 25%
Debt Equity Ratio	0.33	0.49	More than 25%
Operating Profit Margin (%)	5.57%	9.14%	More than 25%
Net Profit Margin (%)	1.49%	3.67%	More than 25%
Net Worth ( In Lacs)	15,103.43	11,559.63

Explanations for variation of 25% or more in Key Financial Ratios:

1. Debtors Turnover Ratio:

The Company has undertaken focused efforts to strengthen its receivables management during the year, resulting in the recovery of a significant of long-outstanding trade receivables. The higher receivables balance at year-end primarily reflects increased business activity and is expected to be realized in the normal course of business.

2. Debt Service Coverage Ratio (DSCR):

The Company significantly strengthened its debt servicing profile during the year by reducing its overall borrowings through the repayment and closure of approximately Rs. 10.00 Crores of term loans and the ICICI Bank overdraft facility from internal accruals. This deleveraging initiative is expected to support improved debt servicing capacity going forward.

3. Current Ratio:

The Current Ratio improved during the year, primarily on account of a stronger current asset base, particularly trade receivables, which exceeded the growth in current liabilities. This reflects the Company s expanding business operations and provides a stronger liquidity position to support future growth.

4. Debt-Equity Ratio:

The Company s capital structure witnessed a significant improvement during the year through the repayment of approximately Rs. 10.00 Crores of debt, coupled with the successful infusion of equity capital through the Rights Issue of 1.12 Crore equity shares. These initiatives have strengthened the balance sheet and reduced financial leverage.

5. Operating Profit Margin:

The Operating Profit Margin was impacted during the year due to elevated operating costs and the execution of orders with comparatively lower margins. These wereportion strategic business decisions aimed at strengthening customer relationships, improving capacity utilization, and expanding the Companys market presence. Management expects operating margins to improve as the product mix shifts towards higher-value segments and operating efficiencies continue to strengthen

6. Net Profit Margin:

The Net Profit Margin was affected by elevated finance costs and one-time expenses associated with the successful Rights Issue, in addition to the impact on operating margins. These expenses are largely non-recurring in nature, while the strengthening of the Companys capital base and reduction in debt are expected to contribute positively to profitability in the coming periods.

Human Resource Management and Industrial Relations:

The Company believes that human resources are the most important assets of the organization. During the year under review, your company continued its efforts to improve HR related processes, practices and system to align these to the organizational objectives. Over the years, Company has maintained consistency in its efforts in training and developing its human recourses with a view to face competition.

There was satisfactory co-operation between the management and the workers in working towards the overall objectives of the company.

Women Centric Initiatives:

The Company is committed to provide healthy environment to all employees of HMFL and does not tolerate any discrimination and/or harassment in any form. The Company has in place a stringent policy in place, to address issues pertaining to female employees and to provide a safe environment for them.

Cautionary Statements:

Statements made in the Management Discussion & Analysis describing the Companys objectives, projections, estimates, expectations may be Forward-looking statements within the meaning of applicable securities, laws & regulations.

Actual results could differ from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand supply and price conditions in the domestic & overseas markets in which the Company operates, changes in the government regulations, tax laws & other statutes & other incidental factors.

For and on behalf of the Board of Directors

	Yuvraj Malhotra
Place: Mumbai	Chairman & Managing Director
Date: 29th May 2026	DIN: 00225156