International Combustion India Ltd Management Discussions

The Management Discussion & Analysis Report for the financial year ended 31st March 2026, as required under Regulation 34 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with Schedule V thereto, is presented below:

1. Industry Structure & Developments

During the Financial Year under review, the Company recorded Revenue from Operations of ^ 294.40 Crores as against ^ 292.98 Crores during the previous financial year, registering a marginal increase in revenue. Loss before tax from operations stood at ^ 3.20 Crores as against a Profit before tax of ^ 13.54 Crores in the previous financial year.

The capital goods industry where your company is active, witnessed a challenging business environment during the year under review. Demand from core sectors such as steel, mining, cement and infrastructure remained uneven due to deferment of capital expenditure by customers and delays in execution of industrial projects. Volatility in raw material prices, logistics constraints and pressure on supply chains also impacted operational efficiencies and project execution timelines.

Despite these challenges, the Company continued to maintain its market presence across its major business verticals, namely Heavy Engineering, Geared Motors & Industrial Gear Boxes and Building Materials. The Company also continued its efforts towards technology upgradation, operational efficiency and strengthening customer relationships.

2. Strength & Opportunities

The Company continues to enjoy a strong reputation in the market for quality engineering products and customised solutions. The Heavy Engineering Division and the Geared Motor & Industrial Gear Box Division are recognised for their technological capabilities, engineering expertise and established customer base across various industries.

The Company s long-standing technical collaborations and continuous product development initiatives enable it to offer reliable and technologically advanced products to customers in India and overseas.

The Building Material Division, operating with advanced technology under licence agreement with CAPA, Spain, has received encouraging market response. Increasing urbanisation, infrastructure growth and rising demand for high-quality construction materials are expected to create significant growth opportunities for this business segment in the coming years.

The Company also sees considerable growth potential in the Industrial Gear Box business under the brand name IC TORQUE DRIVE , which has been introduced in line with the Make in India initiative. The Company expects this vertical to contribute meaningfully to future growth.

3. Threats

The Company operates in the capital machinery & equipment as well as industrial chemicals sectors, where demand is largely dependent on investments in core industries such as steel, mining, cement, power and infrastructure. Any slowdown in economic activity, reduction in capital expenditure or deferment of projects by customers may adversely impact the Company s order inflow, execution cycle and overall business performance.

The Company continues to face challenges arising from volatility in prices of steel and other key raw materials, inflationary trends, supply chain disruptions and fluctuations in foreign exchange rates. In addition, intense competition from domestic as well as international manufacturers, including low-cost imports, exerts pressure on pricing, margins and market share.

The Company remains focused on improving operational efficiencies, cost optimisation, product quality and customer service in order to mitigate the impact of these challenges.

4. Risks & Concerns

The Company has an established Risk Management framework designed to identify, assess, monitor and mitigate various business risks on a continuous basis. The Risk Management Plan approved by the Board provides for periodic review of operational, financial, strategic and regulatory risks and implementation of appropriate mitigation measures.

The key risks faced by the Company include fluctuations in raw material prices, competitive market conditions, working capital management, liquidity constraints, supply chain disruptions and changes in regulatory policies.

Managing receivables and ensuring timely collection of dues from customers continue to remain important areas of focus considering the nature of the Company s business and project execution cycle.

The management continuously reviews risk mitigation strategies and internal processes to minimise the impact of such risks on the Company s operations and financial performance.

5. Outlook

The Company presently operates through three strategic business segments/divisions, namely:

• Heavy Engineering Division;

• Geared Motors & Industrial Gear Box Division; and

• Building Material Division.

The Company remains cautiously optimistic regarding future business prospects considering the expected recovery in infrastructure and industrial investments and increasing emphasis on domestic manufacturing initiatives.

Future outlook for these segments is given below:- Heavy Engineering Division

The Heavy Engineering Division caters primarily to steel, mining, mineral beneficiation and material handling industries. Though demand from these sectors remained subdued during the year under review, the Company expects gradual improvement in business conditions driven by infrastructure development and revival in industrial investments.

The Company continues to focus on strengthening execution capabilities, improving operational efficiencies and expanding customer reach in this segment.

Geared Motor & Industrial Gear Box Division

The Geared Motor Division manufactures geared motors under licence from Bauer, Germany, catering to OEMs and various industries including steel, mining, power and material handling.

The Company expects steady growth in this segment supported by increased industrial activity and demand for efficient drive solutions.

The market response to Industrial Gear Box has been encouraging and the Company expects this vertical to emerge as an important contributor to future business growth.

The market response to the Industrial Gear Box vertical has been encouraging. With growing acceptance across industrial sectors and continued focus on expanding the product range, the Company expects this business segment to emerge as an important contributor to future growth and profitability.

Building Material Division

The Building Material Division manufactures advanced dry mortar and related products using technology licensed from CAPA, Spain. The products have received positive response in the market owing to their superior quality, consistency and technological advantages.

The Company is undertaking various initiatives to strengthen its marketing and distribution network with a view to improving market penetration and expanding customer reach. The Company also plans to introduce high-end waterproofing systems and expects significant growth opportunities in this sector driven by increasing demand from the construction and infrastructure industries.

6. Internal Control Systems and their Adequacy

The Company has adequate Internal Financial Control Systems commensurate with the size, nature and complexity of its operations. These systems are designed to ensure safeguarding of assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records and timely preparation of reliable financial information.

The Company has implemented various policies and procedures including Code of Conduct, Vigil Mechanism (Whistle Blower Policy), Related Party Transactions Policy and Risk Management framework to ensure compliance with applicable laws and corporate governance standards.

The Internal Control Systems are routinely tested by the Management, the Statutory Auditors and the Internal Auditors, who submit their Reports on half-yearly basis to the Management and the Audit Committee. The Audit Committee reviews the reports of the Internal Auditors and addresses significant issues raised by both the Internal Auditors and the Statutory Auditors.

The Audit Committee also follows up on the implementation of the corrective actions suggested by the Auditors in order to ensure the adequacy of the Internal Control Systems.

7. Financial/OperationalPerformance ( in lakh)

Particulars	2025-26	2024-25
Revenue from operations	29,340	29,298
Profit/ (Loss) before exceptional items, extra-ordinary items and tax	(269)	1,354
Exceptional items	51	-
Profit/ (Loss) before extra-ordinary items and tax	(320)	1354
Extra-ordinary item	-	281
Profit/ (Loss) before tax	(320)	1635
Profit/ (Loss) for the year after tax	(239)	1495
Net Cash Flow from Operations	2,286	1,235
Profit/ (Loss) before tax to Sale (%)	(0.92)	4.62
Basic EPS (^)	(10.01)	62.54
Segment-wise Performance		( in lakh)
Particulars	2025-26	2024-25
Segment revenue (Sales & Other Operating Income)
a) Mineral & Material processing & Handling Equipment	17,304	19,714
b) Geared Motor and Gear Box	8,183	7,584
c) Building Material	4,368	2,516
Net Sales/Income & Inter-Divisional Transfer	29,855	29,814
Less: Inter-Segment Transfer	515	516
Net Sales/Income from Operations	29,340	29,298
Segment Result (Profit before tax & Interest)
a) Mineral & Material processing & Handling Equipment	3,936	5,320
b) Geared Motor and Gear Box	(325)	(70)
c) Building Material	(329)	(255)
Total	3,282	4,994
Less : Finance Cost	346	500
Other Unallocable Expenditure, net of unallocable Income	3,256	3,141
Total Profit/(Loss) before tax from Operations	(320)	1,354

9. Details of Key Financial Ratios & Return on the Net Worth

Details of Key Financial Ratios, alongwith detailed explanations for significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) and Return on Net Worth, alongwith detailed explanations for any changes in the same as compared to the immediately previous financial year are given below :-

T Particulars No.	Current FY ended March 31, 2026	Previous FY ended March 31, 2025	% Change between Current FY & Previous FY
1 Debtors \u2019 Turnover Ratio	4.06	4.09	(0.73)
2 Inventory Turnover Ratio	4.44	4.25	4.47
3 Interest Coverage Ratio	0.08	4.27	(98.12)
4 Current Ratio	1.72	1.87	(8.02)
5 Debt Equity Ratio	0.21	0.24	(12.5)
6 Operating Profit Margin (%)	2.13	9.42	(77.39)
7 Net Profit Margin (%)	(0.82)	5.16	(115.89)
8 Return on Net Worth (%)	(1.83)	11.18	(116.37)

Notes: 1. The above ratios are based on the financial statements of the Company.

2. Previous year s figures have been rearranged wherever necessary.

3. Interest Coverage Ratio declined substantially during the financial year 2025-26 due to the higher interest costs and lower Earnings before Interest & Taxes during the said financial year.

4. Due to the higher operating costs without growth in sales during the year under review, the operating profit margin during the said year showed significant decline.

5. Due to the higher operating costs without growth in sales during the year under review, the net profit margin during the said year showed decline.

6. Due to the higher operating costs without growth in sales during the year under review, the return on net worth during the said year showed significant decline.

10. Human Resources/Industrial Relations

The Company continues to focus on development of human resources through various training, skill enhancement and employee engagement initiatives across all divisions and operational areas.

Industrial relations at all units and offices of the Company remained cordial during the year under review. The management maintains continuous interaction with employees and workmen to ensure a productive and harmonious work environment.

The total number of employees of the Company as on 31st March 2026 was 585.

11. Cautionary Statement

Certain statements in this reports relating to Company s objectives, outlooks, projections, expectations etc. may be forward looking statements within the meaning of the applicable laws and regulations. Although the Company believes that the expectations reflected in such forward looking statements are reasonable, the Company does not and cannot guarantee the accuracy of various assumptions underlying such expectations. Accordingly, actual results or performance could differ materially from such expectations, projections etc., whether expressed or modified, due to changes in global economy and business conditions, changes in political environment, changes in Government regulations, tax laws, external economic condition affecting demand and supply, price conditions in the market in which the Company operates, natural phenomena such as flood and earthquake, customers strategies etc. over which the Company does not have any control. The Company does not assume any responsibility/obligation in respect of such forward-looking statement which may undergo changes in future on the basis of subsequent developments or events.

	For and on behalf of the Board of Directors
	Sanjay Bagaria
Date : 28th May 2026	Chairman
Place : Kolkata	DIN: 00233455