Hind Aluminium Industries Ltd Management Discussions

Industry Structure and Developments

The Company is primarily engaged in two business segments, namely aluminium products and renewable energy (solar and wind power generation).

During the year, the Company expanded its business activities by entering the Engineering, Procurement and Construction (EPC) segment, particularly in the execution of electrical sub-station projects. This strategic diversification is expected to create additional growth opportunities and strengthen the Companys revenue base over the coming years.

Opportunities and Threats

The Company has undertaken turnkey projects relating to electrical sub-stations and currently has two projects in hand aggregating to 532 kV, with a total contract value of Rs. 2040.00 Lakh. Approximately 55% of the project work was completed during FY 2025-26, and the balance work is under execution.

The Company intends to actively participate in future tenders and bidding opportunities to further expand its presence in this line of business. The company is also adding a new line of business, as mentioned below.

The Board of Directors regularly reviews both internal and external risks associated with the Companys operations and undertakes appropriate impact assessments and mitigation measures to e_ectively manage such risks.

Segment-wise Performance Renewable Energy Segment

The Companys Wind Turbine Generators (WTGs) and Solar Power Plants, with an aggregate installed generation capacity of 2.52 MW, contributed revenue of Rs. 132.00 lakh during FY 2025-26, as compared to Rs. 112.00 lakh in the previous financial year.

Aluminium Business Segment

During the year, pursuant to the approval of the shareholders, the Company entered into a material related party transaction with Nirav Commercials Limited for the acquisition of its aluminium grills, doors and windows business under the brand name "Elesar Focchi", together with the related assets, liabilities, licences, approvals and employees, on a going concern/slump sale basis or in such other manner as may be determined by the Board. The Company has also taken over customer orders aggregating approximately Rs. 400 Lakh, which are expected to be executed during FY 2026-27.

Outlook

The Company continues to explore opportunities in new business segments to diversify its operations and strengthen its long-term growth prospects.

The Company has entered the EPC space in the electrical sector and is actively participating in bids for electrical sub-station projects. Management is optimistic that this initiative will contribute significantly to the Companys future growth. The management is also optimistic of the source of revenue coming through the acquisition of the aluminium business.

Risks and Concerns

The Company recognises that risk management is an integral part of its business operations and is committed to identifying, monitoring and mitigating risks in a proactive and e_icient manner.

Appropriate risk assessment mechanisms have been implemented to minimise the impact of uncertainties arising from economic, regulatory, operational and market-related factors.

Internal Control Systems and Their Adequacy

The Company has an adequate Internal Financial Control framework commensurate with the size, scale and complexity of its operations. These controls are designed to ensure:

Proper recording and safeguarding of financial and operational information;

Accuracy and reliability of accounting records;

Compliance with applicable laws, regulations and statutory requirements; and

Adherence to internal policies, procedures and regulatory requirements.

The e_ectiveness of these controls is periodically reviewed and strengthened wherever necessary.

Performance

The Company continues its e_orts to enhance revenue generation from its existing business segments. It is also focused on e_icient treasury management with the objective of optimising returns and maximising overall profitability.

Human Resources and Industrial Relations

The Company places significant emphasis on the development of its human resources and regularly conducts training programmes to enhance employee skills and enable them to adapt to the evolving business environment.

Industrial relations remained cordial and satisfactory throughout the year. Key Financial Ratios with details of significant changes:

	Standalone
Ratios	2025-26	2024-25
Current Ratio	2.64	27.84
Debt Equity ratio	0.11	-
Debt Service coverage ratio	25.34	19.74
Return on equity ratio	5.86%	2.94%
Interest Coverage Ratio	23.75	20.64
Inventory Turnover ratio	3.73	-
Trade receivable turnover ratio in months(annualised)	2.24	1.57
Trade payable turnover Ratio	12.82	-
Net capital turnover ratio	54.34%	11.74%
Net Profit Ratio	58.05%	178.32%
Turnover on Capital employed ratio	8.46%	7.53%
Return on Investment ratio	18.50%	12.75%