HRS Aluglaze Ltd Management Discussions

INDUSTRY OUTLOOK

GLOBAL ECONOMY

The global economy entered FY2026 with improving macroeconomic stability despite continued geopolitical uncertainty,, trade realignments, and commodity price Volatility- Nominal global GDP expanded by approximately 4.9% during CY2Q24-25 and Is expected to maintain a healthy long-term growth trajectory, supported by infrastructure spending, industrial expansion, urban development, and sustainability-led investments,

Global construction and urban infrastructure activity remained resilient during the period, driven by increasing focus on energy-efficient buildings, green infrastructure, and technologically advanced construction systems, At the same time, evolving tariff structures, logistics disruptions, and regional conflicts continued to create periodic pressure an global supply chains and commodity markets,

Commodity-linked sectors, particularly metals and construction materials, continued to witness volatility during the year, reinforcing the importance of disciplined procurement and supply chain management across construction and building envelope industries.

INDIAN ECONOMY

India continued to demonstrate strong economic momentum entering FY2026, supported by manufacturing growth, infrastructure investments, resilient domestic consumption, and sustained construction activity. Nominal GDP reached approximately INft 347.5 trillion during FY2025, reflecting year-on-year growth of 15.4%> while India emerged as the worlds fourth-largest economy.

Inflation moderated significantly during the yeor, with the Consumer Price index easing to 3.3% by March 2025, creating a relatively stable operating environment for infrastructure and real estate sectors. Improved macroeconomic stability ond continued public and private sector investments are expected to support long-term growth across construction-linked industries,

India also continued to benefit from increasing global supply chain diversification and rising foreign investments. Foreign Direct investment inflows increased 14% year-on-year to approximately USD 81 billion during FY2025, led by manufacturing and technology-oriented sectors.

At the same time, structural cost pressures remained relevant across the broader construction ecosystem. Labour costs increased sharply over the past three years, while prices of steef, aluminium, copper, and cement witnessed increases ronging between 30% ond 90%, impacting project economics and procurement planning across the value chain.

Year	GDP Nominal (Current USD)	GDP Growth	GDP per capita	Pop, Change
2026	54,153,191,000,000	6,5%	52,813	0,87%
2025	53,910,312,000,000	7.6%	52,675	0.89%
2024	53,760,314,000,000	7.1%	52,692	0,39%
2023	53,500,906,000,000	7.2%	52,434	0,39%

REAL ESTATE & CONSTRUCTION INDUSTRY

Indias real estate and const ruction sectors continue to remain key long-term demand drivers for the building envelope ecosystem, including fagade and fenestration solutions. The Indian real estate market was valued at approximately INR 52,5 trillion in FY2Q25 and is projected to reach nearly I MR 85 trillion by FY203Q.

Demand remained healthy across residential, commercial, hospitality, and mixed-use developments entering FY2026, supported by urbanisation, rising disposable incomes, and increasing preference for premium developments,

The residential market is witnessing a continued shift toward premium and higher-specification housing, properties above INR10 million now account for approximately 62% of residential sales compared to 51% previously, increasing demond for advanced glazing systems, thermally insulated profiles, energy-efficient facades, ond architecturally differentiated building exteriors.

Commercial real estate activity also remained robust, supported by demand from Global Capability Centres (GCCs), technology companies, financial institutions, and integrated urban developments. Indias commercial real estate market is projected to grow from approximately INR 3,5 trillion in FY2024 to over INR II trillion by FY203H

Urbanisation remains a major structural growth driver for the sector, with Indias urban population expected to increase significantly over the coming decodes, supporting sustained demond for modern, sustainable, and technologically advanced construction solutions.

BUILDING & CONSTRUCTION MATERIALS INDUSTRY

The Indian construction ecosystem is witnessing a gradual shift toward higher-specification and performance-oriented building materials. Modern construction increasingly prioritises sustainability, thermal efficiency, durability, aesthetics, and lifecycle performance, resulting in growing adoption of engineered building envelope solutions across residential, commercial, ond institutional developments.

Developers and architects are increasingly integrating advanced glazing systems, insulated fagades, modular construction methods, and energy-efficient materials into project specifications, This transition is being driven by evolving architectural preferences, rising environmental awareness, stricter building standards, and growing focus an operational efficiency,

The contribution of fagade and envelope systems to overall construction costs has increased significantly over the past two decades, reflecting the growing importance of energy-efficient and performance-oriented construction materials within modern urban developments.

Simultaneously, increasing emphasis on green buildings and sustainable infrastructure is accelerating demand for technologically advanced and compliant building envelope systems across Indias organised construction ecosystem,

FACADE & FENESTRATION SECTOR

The fagade and fenestration sector has become an increasingly important component of modern construction and urban infrastructure development. Building envelope systems today play a critical role in thermal efficiency, sustainability, energy management, occupant comfort, safety, and architectural identity.

Indias combined fagade and fenestration market was valued at approximately INR 292.3 billion in FY2025 and is projected to reach INR 531.4 billion by FY2030, reflecting a CAGR of 12.7%,

The fagade segment is projected to grow from approximately INR 73.1 billion in FY2G25 to INR 136 billion by FY2G30, while the fenestration market is expected to increase from INR 219.2 billion to INR 395.4 billion during the same period.

Premiumisation trends across residential and commercial real estate are materially improving project specifications. Higher adoption of curtain wall systems, high-performance glazing, modular fagades, and energy-efficient solutions continues to support long-term sector growth.

The sector is also witnessing gradual formalisation, with organised players continuing to gain market share as developers increasingly prioritise execution capability, engineering expertise, compliance standards, and

SUSTAINABILITY & BUILDING STANDARDS

Sustainability and energy efficiency are becoming increasingly central fo the construction ecosystem entering FY2026. More than 60% of commercial occupiers now prefer green-certified buildings, while institutional investors are increasingly incorporating sustainability criteria into investment decisions.

Regulatory frameworks such as the E nergy Conservation Building Code (ECBC) 2022 and Eco-Niwas Samhita are encouraging adoption oF energy-efficient glazing systems, advanced insulation technologies, and higher-performance building envelopes. Building envelope systems are estimated to deliver energy savings of up to 30%, strengthening their importance within modern building design.

Technology adoption within the sector is also increasing steadily. Smart facades, adaptive glaring systems, modular installation methods, prefabricated solutions, and Building-integrated Photovaltaics (BiPV) are gradually gaining traction across premium and institutional developments.

These trends ore expected to support organised players with stronger engineering capabilities, technical expertise, integrated execution models, and sustainability-focused product offerings,

INDUSTRY DYNAMICS

The Indian facade and fenestration industry continues to remain fragmented, particularly within smaller and cost-sensitive projects. However, rising compliance standards, increasing project complexity, and evolving customer expectations are steadily accelerating the shift toward organised and technically capabie players.

The organised fa gad e segment is projected to grow at approximately 20% CAGR through FY2030, significantly outpacing the broader industry. Similarly, the organised fenestration segment is expected to witness strong growth driven by increasing demand for premium and energy-efficient solutions.

Execution capability, engineering expertise, sustainability alignment, advanced manufacturing capability, and integrated project delivery are increasingly emerging as key differentiators within the organised segment.

Institutional clients and large developers are progressively prioritising long-term performance, quality standards, execution reliability, and technical competence over purely cost-driven procurement decisions. As industry standards continue to evolve, organised players with stronger technical capabilities and -20% CAGR

established client relationships are expected to strengthen their organisedla;i,d..sgm.nithroegtiEY2G3D

competitive positioning further

OUTLOOK

The outlook for Indias faqade and fenestration sector remains favourable entering FY2026, supported by urbanisation, premiumisation of real estate, infrastructure expansion, and increasing adoption of sustainable building practices.

Demand visibility remains healthy across commercial real estate, premium residential developments, institutional infrastructure, airports, hospitality projects, and mixed-use urban developments. Rising focus on energy efficiency, sustainability, and technologically advanced building envelope systems Is expected to further support long-term sector growth.

The Indian facade and fenestration market is projected to grow from approximately 1NR 292.3 billion in FY2D25 to JNR 531.4 billion by FY2030, while organised players ore expected to continue gaining market share supported by stronger execution capabilities, technical expertise, and compliance standards.

For organised and execution-foe used players operating within the facade and building envelope industry, the evolving market environment continues to present favourable long-term opportunities supported by increasing specification intensity, sustainability-led demand, and growing preference for technically capable partners.

At the same time, the industry continues to face challenges arising from raw material price volatility, supply chain disruptions, competitive intensity, and project execution risks. Maintaining procurement discipline, strengthening technical capabilities, improving operational efficiency, and adapting to evolving sustainability requirements will remain critical for sustaining profitability and long-term competitive positioning within the evolving industry landscape.

STRENGTHS & OPPORTUNITIES

O Integrated Capabilities

Driving Execution Excellence

HRS Aluglaze has built a strong foundation through its integrated business model, encompassing design, manufacturing, supply, and Installation of fagade and aluminium systems. Supported by advanced manufacturing infrastructure, including CNC machinery, in-house powder coating facilities, testing capabilities, and a dedicated uPVC production line, the company maintains greater control over quality, production schedules, and project execution. Its ability to successfully execute projects across residential, commercial, institutional, ond industrial segments, coupled with long-standing relationships with developers, architects, consultants, and institutional clients, has enabled the company to establish a strong reputation for quality and timely delivery.

? Positioned to Capitalise on Future Growth Opportunities

With increasing focus on capacity enhancement, operational efficiency, and geographical expansion, HRS Aluglaze is weN-positioned to pursue future growth opportunities within the architectural fagade and fenestration industry. The proposed expansion of manufacturing facilities at Rajoda is expected to augment production capacity and support a wider range of product offerings, while the planned expansion into new markets aims to strengthen customer engagement and regional presence. Supported by its commitment to quality, sustainability, and certifications such as ISO 9001:2015 and MSME ZED Bronze, the company continues to focus on building a scalable platform for long-term growth and value creation.

RISK AND THREATS

Exposure to Industry and Raw Material Cycles

The facade and fenestration industry remains closely linked to activity levels within the construction, real estate, and infrastructure sectors. Any slowdown in project execution or investment activity may influence demand across the value chain.

In addition, the industry remains dependent on key inputs such as aluminium, glass, and hardware, making it vulnerable to fluctuations in raw material prices and supply chain disruptions.

Recent volatility in global aluminium supply chains arising from the Middle East conflict has further highlighted the sectors exposure to external factors that may impact procurement costs, project timelines, and operating efficiencies,

HRS Aluglaze continues to focus on operational discipline and efficient project planning to navigate such industry-widechallenges.

Managing Growth in a Competitive Environment

As HRS Aluglaze continues to expand its operations and geographical presence, maintaining strong relationships with customers, suppliers, developers, architects, and consultants remains critical to sustaining growth.

The business also operates in a competitive environment where execution capabilities, quality standards, and timely delivery play a significant role in winning and retaining projects.

Any disruption in supplier relationships, changes in customer demand, or increasing competitive intensity couid impact business performance.

The companys continued focus on quality, execution excellence, and customer-centhc solutions is expected to remain central to addressing these challenges while supporting long-term growth.

COMPANY OVERVIEW

HRS Alugiaze Limited is an integrated fagade engineering and aluminium systems company engaged in the design, manufacturing, supply, and installation of a wide range of architectural solutions, including aluminium doors and windows, curtain walls, structural glazing systems, cladding, railings, partitions, louvers, and allied products. The Company caters to residential, commercial, industrial, institutional, and infrastructure projects, providing both standardised and customised solutions tailored to the requirements of developers, architects, contractors, and institutions.

Established in 2012, HRS Alugiaze has developed end-to-end capabilities across design engineering, fabrication, surface finishing, and installation, enabling greater control over quality, execution timelines, and project delivery. The Company operates a fully integrated manufacturing facility spread across approximately 11,176 square metres at Rajada, Ahmedabad, with an installed capacity of approx 35,00,000 square feet and equipped with advanced CNC machinery, in-house powder coating facilities, and quality testing infrastructure.

Over the years, the Company has completed more than 260 projects and established a presence across multiple states, including Gujarat, Maharashtra, Telangana, and Tamil Nadu. Supported by ISO 9001:2015, ISO 14001:2015 and MSME ZED Bronze certifications, HRS Alugiaze has built strong relationships with developers, contractors, and institutions, with approximately 80% of revenue generated from repeat customers, reflecting its execution capabilities and customer trust.

COMPANY OUTLOOK

Guided by our core strengths and strategic investments, we are we 11-positioned to accelerate growth and create long-term value.

B Scaling the Fat^ade & Fenestration Business

The company enters FY27 with a clear focus on deeper market penetration, participation in larger and technically complex projects, strengthening manufacturing capabilities and expanding into high-potential geographical markets.

? Expanding Presence Across Key Markets

Geographical expansion remains a key growth lever, with Ahmed a bad, Kolkata, Mumbai, Bengaluru and Hyderabad identified as focus markets for FY27. The company is actively pursuing large-sized opportunities in Eastern India and Hyderabad, while further strengthening its presence in existing markets.

Advancing Backward Integration & Automation

The company is strengthening its backward integration through in-house processing, automated manufacturing systems, powder coating and renewable energy infrastructure, whiie planning additional capabilities in aluminium extrusion and glass processing to enhonce operational efficiency, quality control and delivery reliability.

E Building a Diversified Order Pipeline

With approximately ?108 crores of order inflows in FY26, the company continues to develop a diversified project pipeline spanning residential, commercial, institutional, infrastructure and specialised fag ad e applications.

B Strengthening

Manufacturing Sc Execution capabilities

The companys integrated manufacturing and execution model, supported by its Bavla Ah me da bad facility and adjoining land acquired for expansion, is expected to enhance production capacity, improve execution timelines and enable the company to undertake larger and multi-location projects.

Focus on Sustainable,

I n te g rated G rowt h

Going forward, the company remains focused on building a sustainable order pipeline, improving capacity utilisation and expanding its geographical footprint, while strengthening its position as an integrated fagade and architectural building-envelope solutions provider.

KEY FINANCIAL RATIOS:

Sr. No Ratio	Unit	Numerator	Denomin ator	31 -Mar- 26	31-Mar- 25	Varianc e in %	Explanation for any change in the ration by > 25% as compa red to preceding year
1 Current Ratio	In Times	Current Assets	Current Liabilities	1.82	0.92	49.45	As per Note-2
2 Debt Equity Ratio	In Times	Total Debt	Sharehol ders Equity	0.52	1.92	(72.92)	As per Note-1
3 Debt Service Coverage Ratio	In Times	Earnings Available for Debt Service	Debt Service	1.77	2.23	(20.63)	NA
4 Return on Equity Ratio	In %	Net Profit after taxes available to Equity Share Holder	Average Share Holder Equity	21.39%	34.24%	(37.53)	As per Note-1
5 Inventory Turnover	Days	Cost of Goods Sold	Average Inventory	136 Days	92 Days	47.83	As per Note- 3
6 Trade Receivable Turnover Ratio	Days	Net Credit Sale	Average Trade Receivabl e	84 Days	77 Days	9.09	NA
7 Trade Payables Turnover Ratio	Days	Net Credit Purchase	Average Trade Payable	73 Days	90 Days	-23.29	NA
8 Net Capital Turnover Ratio	Days	Net Sales	Average Working Capital	71 Days	-23 Days	-400	As per Note-1
9 Net Profit Ratio	In %	Net Profit after taxes	Net Sales	15.13%	12.22%	23.81	NA
10 Return on Capital Employed	In %	Earnings Before Interest and Taxes	Capital Employe d	14.26%	15.97%	(10.71)	NA
11 Return on Investment	In %	Income from Investment	Cost of Investme nt	N/A	N/A	N/A	NA

Note

1. During the year, the Company completed its Initial Public Offering (IPO), resulting in a significant infusion of equity capital. As a result of the same Debt-Equity Ratio, Return on Equity Ratio and Net Capital Turnover has been affected.

2. During the year, the increase in inventories and trade receivables, along with retention of IPO proceeds in fixed deposits, has affected current ratio.

3. During the year, the company has kept higher level of inventory on account of higher orderbook on hand which has affected the Inventory Turnover Ratio.

Place: Ahmedabad	FOR AND ON BEHALF OF THE BOARD OF DIRECTORS
Date: 3rd September, 2026	Hrs Aluglaze Limited (Formerly Known as HRS Aluglaze Private Limited)
Registered Office:
601 -W1, OPP. PSP House, B/H S.G.
Highway, Ambli Road,	Mr. Rupesh Pravinbhai Shah
Ahmedabad - 380058, Gujarat	Chairman and Managing Director DIN:02806068