ICE Make Refrigeration Ltd Management Discussions

Global Economy

The global economy delivered a growth rate of 3.4% in CY 2025, a resilient outcome despite elevated trade policy uncertainty and the lingering effects of prior tightening cycles across major economies. Global headline inflation, which had been on a sustained downward trend, stood at 4.1% for CY 2025, reflecting the progress central banks had made in anchoring price stability. This relative equilibrium, however, was disrupted by the outbreak of conflict in the Middle East at the close of February 2026, an event that has introduced significant downside risk into what was otherwise a steadily recovering global environment.

The conflicts most immediate economic consequence has been its impact on energy prices. Crude oil, which averaged USD 67.74 per barrel in CY 2025, is assumed by the IMF to rise to USD 82.22 per barrel in CY 2026, a jump driven by supply disruptions and elevated risk premiums across energy markets. This repricing of energy has cascaded directly into inflation projections. Global headline inflation is now expected to rise to 4.4% in CY 2026, reversing the disinflation progress of the previous two years, before resuming its decline to 3.7% in CY 2027 as supply conditions are assumed to gradually normalize.

The inflation reversal has placed central banks in a difficult position. Having committed to easing cycles through late 2025, many are now reassessing the pace and extent of rate reductions. The possibility of delayed easing, or even renewed tightening in economies where inflation expectations are less well-anchored, is adding to financial market uncertainty. Equity prices have pulled back, credit conditions have tightened, and rate expectations have shifted across major economies since the conflict began.

The impact of this combined shock is unevenly distributed across regions. Energy-importing economies, particularly in Europe and parts of Asia-Pacific, face the sharpest exposure given their structural reliance on imported energy and already-fragile growth momentum entering 2026. Net energy exporters such as the United States and Canada are better insulated from the direct cost shock, though tighter financial conditions and soft prior- year growth continue to act as headwinds. For emerging market and developing economies, the pressure is more acute: this group faces both higher import costs and tighter external financing conditions, creating a more pronounced growth and inflation trade-off than the global aggregate suggests.

Indian Economy

India remains one of the fastest- growing major economies globally, and 2025-26 reinforces that standing. The National Statistics Office (NSO), under the Ministry of Statistics and Programme Implementation (MoSPI), estimates real GDP growth at 7.7% for 2025-26, per the provisional estimates released in June 2026. Strong private consumption, sustained capital formation, and a resilient services sector drove this performance, keeping India well ahead of most comparable economies and reflecting the structural depth that underpins the long-term Viksit Bharat 2047 development vision.

The manufacturing sector was a particular standout, recording double-digit growth in 2025-26, while

the secondary and tertiary sectors together recorded growth rates exceeding 9%.

Inflation management was a defining feature of 2025-26. CPI headline inflation for the year averaged approximately 2.0% to 2.6%, the lowest reading in several years and comfortably within the RBIs target band of 2% to 6%. Food prices, which had been a persistent source of volatility in prior years, sustained a prolonged decline through most of 2025-26, with headline CPI moderating to 3.4% by March 2026.

This well-contained inflation trajectory gave the Reserve Bank of India room to act decisively on monetary policy through the year. The RBI cut the repo rate by a cumulative 125 basis points across

2025-26, bringing it from 6.5% to 5.25%, the lowest level since July 2022. At its February 2026 meeting, the MPC held rates steady at 5.25% with a neutral stance, signaling caution in light of the West Asia conflict and its potential inflationary spillover through energy and supply chain channels.

Infrastructure investment continues to anchor the growth story. The Union Budget 2026-27 allocated Rs.12.22 lakh Crore toward capital expenditure, stepping up from Rs.11.21 lakh Crore in 2025-26. This sustained public investment improves connectivity, streamlines supply chains, and generates multiplier effects across allied industries including cold chain and food processing.

Cold Chain Industry

The global cold chain market is expanding at a pace that reflects both structural demand and heightened urgency around supply chain integrity. The market stood at USD 452.84 Billion in 2025 and is projected to reach USD 876.47 Billion in 2026 at a compound annual growth rate (CAGR) of 14.1%.

Indias food and beverage market, spanning food processing, organized retail, and adjacent categories, out of which the food processing industry is projected to approach approximately USD 535 Billion by 2026. Growing within this larger market, online food delivery has become one of the fastest- scaling distribution channels, with the India-specific market estimated at USD 7-10 Billion in 2025.

Several forces are expected to sustain this expansion simultaneously: economic activity in emerging markets generating new demand for cold storage infrastructure, a growing global population raising food production and distribution requirements, and the pharmaceutical sector outpacing

The high-velocity, temperature- sensitive nature of quick commerce fulfillment places significant demands on cold chain infrastructure at every stage of the delivery cycle. Beyond consumption-driven demand, persistent food wastage across agricultural supply chains adds a second structural argument for cold chain investment, one that holds across economic cycles and keeps

most other segments on the back of rising demand for biologies and mRNA-based therapies, categories that require strict temperature control throughout the supply chain.

(Sources : .

thebusinessresearchcompany.com/report/cold-

chain-global-market-report)

the focus on preservation efficiency and temperature-controlled transportation as essential rather than incidental infrastructure.

(Sources : mar eg roup.com/ind i a n- cold-chain-market,

reports/india-cold-chain-logistics-market,

india-online-food-delivery-market)

Growth Drivers

Shift toward High-Value Agriculture and Specialized Storage

Indias increasing focus on horticulture, dairy products, seafood, and value-added agricultural produce generates sustained demand for specialized refrigeration and preservation infrastructure. This transition encourages investments in controlled- environment storage, pre-cooling facilities, and customized refrigeration systems that improve shelf life, maintain product quality, and reduce post-harvest losses. Export-oriented agricultural categories, including seafood and fresh produce, contribute to higher demand for integrated cold chain infrastructure across sourcing and distribution corridors.

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Pharmaceutical and Healthcare Cold Chain Expansion

Indias pharmaceutical industry continues to expand, with biologies and temperature-sensitive therapies emerging as the fastest-growing segments within it. This growth strengthens demand for compliant cold chain infrastructure across the sector. Reliable refrigeration systems, temperature-monitored warehousing, and specialized transportation networks grow increasingly important for maintaining product integrity and meeting regulatory requirements. Indias pharmaceutical market reached approximately USD 68.38 Billion in 2025, and the continued rise of biologies should sustain long-term demand for advanced cold storage and monitoring solutions.

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Export Growth and Reefer Logistics Development

Rising exports of pharmaceuticals, seafood, processed foods, and agricultural produce generate demand for efficient cold chain logistics and refrigerated transportation networks. Refer fleets, temperature-controlled transportation, and integrated logistics infrastructure all scale up as businesses look to achieve faster delivery cycles, wider geographic coverage, and improved handling standards. Agriculture exports were estimated at USD 52.55 Billion in 2025-26, while seafood exports reached Rs.72,325.82 Crores during the same period.

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Infrastructure Development and Regional Expansion

The development of logistics corridors, food processing clusters, warehousing hubs, and industrial infrastructure across major states creates region-specific demand for refrigeration and cold storage solutions. Growth in organized retail, warehousing activity, industrial leasing, and distribution infrastructure supports the deployment of customized cooling systems across commercial and industrial applications. States such as Uttar Pradesh, Maharashtra, and West Bengal remain important demand centers given their strong agricultural, food processing, and logistics ecosystems, while Gujarat and Punjab see increasing investments in cold chain and distribution infrastructure.

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Increasing Private Sector Participation and Integrated Solutions

The growing participation of organized Logistics operators, technology-enabled start-ups, and third-party logistics providers strengthens Indias cold chain ecosystem. Businesses increasingly offer integrated end-to-end solutions that combine storage, transportation, monitoring, and distribution capabilities, improving operational coordination, supply chain visibility, and service reliability. Expansion into emerging markets and the rising outsourcing of logistics operations further support demand for scalable cold chain infrastructure and integrated service platforms.

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Technology Adoption, Monitoring and Smart Warehousing

Technology-led improvements raise efficiency, reliability, and transparency across the cold chain ecosystem. Businesses deploy loT-enabled sensors, real-time monitoring systems, and traceability solutions to improve temperature visibility and quality control throughout the logistics cycle. Al-based predictive maintenance, smart warehousing systems, and automation technologies reduce downtime, improve planning efficiency, and optimize inventory and transportation management, collectively moving the sector from reactive to anticipatory operations.

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Growth in Cold Chain Packaging Solutions

The emphasis on preserving product quality during storage and transportation drives adoption of advanced cold chain packaging. Businesses deploy thermal packaging materials, insulated containers, and reusable packaging systems across food, pharmaceutical, and retail supply chains to maintain product integrity, improve handling efficiency, and support longer transportation cycles as distribution networks extend their geographic reach.

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Energy Efficiency and Sustainable Refrigeration

A rising focus on sustainability and energy efficiency is reshaping investment decisions across the cold chain industry. Regulatory initiatives and environmental standards accelerate the transition toward low-GWP refrigerants, high-efficiency equipment, and improved leak prevention practices, while digital energy monitoring systems give operators greater visibility into consumption and losses. This shift should drive sustained investment in energy-efficient cooling infrastructure and environmentally sustainable refrigeration solutions across industrial and commercial applications.

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A Manufacturing Network Built for Scale

Headquartered in Ahmedabad, Gujarat, Ice Make operates a mutti-tocation manufacturing network designed to serve regionat demand effectivety white supporting production flexibility and timely customer delivery across India. Manufacturing facilities are located at Dantati in Gandhinagar, Vamaj in Mehsana, and Bavta in Ahmedabad across Gujarat, and at Chennai in Tamil Nadu and Kotkata in West Bengal. This spread across five locations reduces Logistical lead times, calibrates production to regionat needs, and supports consistent service execution across key markets.

Cooling Solutions across Every Link of the Chain

The Companys product portfolio spans eight categories, covering the full length of the cold chain from storage and processing to transport and retail display.

This breadth positions the Company to respond to emerging market trends, including the shift toward online grocery and quick-commerce delivery. Customized cold room solutions for dark stores and dedicated manufacturing units for Continuous PU/PIR Sandwich Panels and Chest Freezers and Visi Coolers, which commenced commercial operations in January 2025, have expanded the Companys presence in adjacent markets such as pre-engineered buildings, insulation infrastructure, and modern retail refrigeration. These initiatives are aligned with the Companys long-term growth trajectory.

Consolidated Financial Performance (Rs. in lakhs)

Consolidated Financials	2025-26	2024-25
Total Revenue	66,891.94	48,041.99
EBITDA	4,604.15	4,344.32
EBITDA Margin (%)	6.9%	9.04%
PAT	1,212.88	2,290.40
PAT Margin (%)	1.8%	4.77%
Net Worth	13,260.74	12,370.51
Long-Term Debt	7,903.65	4,782.27
Cash and Cash Equivalents	177.29	37.79

Key Financial Ratios (Consolidated)

Ratio	Numerator	Denominator	As of March 31, 2026	As of March 31, 2025	Variance %	Explanation (if Variance >25%)
Current Ratio	Current Assets	Current Liabilities	1.17	1.17	-	-
Debt-Equity Ratio	Total Debt	Shareholders\u2019 Equity	2.79	1.97	42%	The ratio has increased due to increase in total debt of the company.
Debt Service Coverage Ratio	Earnings Available for Debt Services	Debt Service	1.89	5.32	-64%	The ratio has decreased due to increase in total debt of the company.
Return on Equity Ratio	Net Profit After Taxes Less Preference Dividend (If Any)	Average Shareholders Equity	9.44	20.07	-53%	The ratio has decreased due to decrease in earnings.
Inventory Turnover Ratio	Cost of Goods Sold or Sales	Average Inventory	4.00	4.30	-7	-
Trade Receivables Turnover Ratio	Net Credit Sales*	Average Trade Receivables	5.41	6.03	-10	-
Trade Payables Turnover Ratio	Net Credit Purchase*	Average Trade Payables	4.10	4.64	-12%	-
Net Capital Turnover Ratio	Net Sales	Average Working Capital	13.65	14.97	-9%	-
Net Profit Ratio	Net Profit After Taxes	Net Sales	1.82	4.78	-62%	The ratio has decreased due to decrease in net profit after tax.
Return on Capital Employed	Earnings Before Interest and Taxes	Capital Employed	13.67	20.45	-33%	The ratio has decreased due to decrease in earnings before interest and tax.
Return on Investment	Income from Investments	Cost of Investment	Since the return on investment is negligible, therefore the ratio is not provided.

Risk Management

Risk	Impact	Mitigation
Economic Risk	The global geopolitical landscape, shifting trade policies, and changing macroeconomic conditions create an environment of unpredictability that can affect the Companys regular operations and financial stability.	Ice Make monitors global economic trends closely, upholds legal compliance across its operations, builds strategic partnerships that strengthen its market position, and continuously adapts to evolving competitive conditions.
Supply Chain	The Company sources essential raw materials, components, and parts from external suppliers. Any significant disruption in this chain can impact production timelines and delivery schedules, with downstream effects on revenue and customer satisfaction.	The Company maintains active relationships with multiple suppliers for critical materials, implements contingency plans for alternative sourcing, conducts regular reliability assessments of its supplier base, and optimizes inventory levels to absorb disruptions before they reach the production floor.
Quality Control Issues	The Companys standing in the market is directly linked to the quality of its products. Any lapse in quality control standards can lead to product defects, recalls, and a measurable impact on customer trust.	Ice Make runs rigorous quality control processes at every stage of production, conducts regular inspections and audits, invests in advanced manufacturing technologies, and maintains a well-trained workforce to address quality concerns as they arise, protecting both product integrity and the Company\u2019s reputation. Ice Make manages this exposure through
Currency Exchange Risk	With international operations generating receivables in foreign currencies and the Indian Rupee as its functional currency, the Company is exposed to exchange rate volatility that can affect costs and margins.	hedging instruments, including forward contracts, diversifies its customer base across geographies, prices contracts in local currencies where feasible, and tracks exchange rate movements on an ongoing basis.
Cybersecurity Risk	A cybersecurity incident can result in data breaches, unauthorized access to sensitive information, operational disruption, financial losses, and regulatory penalties, each of which carries significant reputational consequences for the Company.	Ice Make maintains a strong cybersecurity infrastructure, with regular security audits, employee training on data protection, encryption and access controls, system backups, and intrusion detection systems in place. The Company also engages cybersecurity specialists to stay ahead of emerging threats. The Company responds by investing in product innovation and differentiation,
Competition	The refrigeration equipment market is served by a growing number of domestic and international players. This competitive intensity can exert pressure on the Companys operations, pricing, and market position.	maintaining competitive pricing, deepening customer relationships through superior service quality, improving operational efficiency, and monitoring market trends closely to act on shifts before they affect the business.
Technological Redundancy	Rapid technological evolution in the refrigeration industry means that a failure to keep pace can erode the Company\u2019s market position, particularly as customers increasingly expect updated and energy- efficient solutions.	Ice Make invests continuously in research and development, refreshes its product offerings in line with technological progress, builds partnerships with technology providers, conducts ongoing market research to track shifting customer preferences, and trains its workforce to adopt new technologies with confidence.

Governance and People

Standards that Hold Us Accountable

The Company operates with a structured quality assurance framework, supported by a dedicated team responsible for maintaining defined quality standards across operations. This function is equipped with the required technical expertise and follows established protocols to ensure consistency in processes, product reliability, and compliance with applicable standards.

Underpinning this is an internal control framework designed to safeguard assets, ensure accuracy of financial reporting, and support efficient operations. Internal audits are conducted periodically to review the effectiveness of controls and identify areas for improvement. The Audit Committee reviews these findings and provides guidance on corrective actions, ensuring alignment with organizational policies and regulatory requirements.

The People behind the Products

As of March 31, 2026, Ice Make had a workforce of 1,249+ employees, comprising 432+ On - roll employees and 817 contractual personnel across the Company. Its wholly owned subsidiary, Bharat Refrigerations Private Limited, employed 40 company personnel and 40 contract workers during the same period and its subsidiary, IceBest Private Limited, employed 10 company personnel and 8 contract workers during the same period.

This workforce composition reflects the Companys focus on supporting operational scale and meeting the demands of a growing business.

During the year, efforts were directed toward strengthening employee engagement, enhancing productivity, and building functional and operational competencies through structured training programs and planned interactions. The Company remains focused on aligning individual development with business requirements, maintaining a stable and performance-oriented environment where its teams can operate with consistency and purpose.