Jay Bee Laminations Ltd Management Discussions

Global Outlook

Global energy demand rose by 2.2% in 2024, with electricity consumption up 4.3%, almost twice the decade average (IEA). The
expansion was led by electric mobility, industrial electrification, and the rapid growth of digital infrastructure. Renewable additions
reached a record 585 GW, of which 92% came from solar and wind (IRENA). High-voltage transformer and T&D equipment markets
globally are expected to grow at 6-7% CAGR through 2034, supported by grid modernization and renewable integration.

References: International Energy Agency (IEA), International Renewable Energy Agency (IRENA)

Indian Outlook

India remains the fastest-growing major economy with GDP growth of 6.5% in FY25 (MoSPI). Power demand grew ~4.2% in FY25
and is expected at ~6% in FY26 (ICRA). Installed capacity reached 476 GW by June 2025, with non-fossil sources contributing ~49%
(CEA). Solar led growth with 23.8 GW added in FY25, bringing solar capacity above 110 GW. Indian Railways has electrified 98.8% of
broad-gauge routes (April 2025) and targets full electrification by FY26. The National Electricity Plan envisages ^9.1 lakh crore capex in
transmission by 2032 for 191,000 km of lines and 1,270 GVA of substations. On distribution, the ^3.03 trillion RDSS scheme continues
to drive upgrades in metering, feeders, and loss reduction.

References: Ministry of Statistics and Programme Implementation (MoSPI), Central Electricity Authority (CEA), ICRA Research, Ministry
of Railways, National Electricity Plan (CEA), Revamped Distribution Sector Scheme (MoP)

Industry Structure & Developments

Indias power sector spans generation, transmission, and distribution. PGCIL dominates inter-state transmission, while state transcos
manage intra-state networks. Demand for equipment is driven by central/state schemes and utility capex. Recent developments
include:

- Mandatory BIS certification for cores/laminations - favoring organized players.

- PGCIL approvals as critical credentials - Jay Bee secured approval up to 400 kV class in FY25.

- OEMs outsourcing core assemblies and small transformers to specialist vendors

- opening higher value-added opportunities.

The domestic transformer market (USD ~4 bn in 2023) is projected to nearly double by 2030, with growth focused on renewable
integration and urban electrification.

References: Bureau of Indian Standards (BIS), Power Grid Corporation of India (PGCIL), Industry Market Research Reports
Company Performance in FY25

• Production & Volumes: Total production increased to 12,400 MT, up 32% YoY, driven by Unit-ll expansion.

• Revenue & Profitability: Revenue rose 21% YoY to ^368 crore, with PAT growing 31% to ^25.4 crore. EBITDA stood at ^43 crore with
an 11.7% margin. Margins came under temporary pressure in H2 due to CRGO raw material supply volatility, a trend that continues
into H1FY26. However, we remain committed and confident of achieving long-term sustainable growth in the CRGO laminations
and cores market, as volatility is expected to ease with increased raw material capacities coming on-stream at the steel mill level.

• Financial Strength: Debt-equity at 0.16x reflects prudent capital allocation. We will continue to keep debt levels in check, guided
by our confidence in growth prospects and strategic initiatives. Our inventory levels rose abnormally in H2FY25 due to expanded
capacities and uncertainty in raw material supply. We expect both inventory and receivables to stabilize at 60-70 days in the long
run.

• Customer Diversification: Added ~12 new clients in FY25, contributing 12% of sales, including BHEL Bhopal. Top-10 client
concentration reduced to 52% from 57% last year. Going forward, we are targeting marquee clients in the power transformer
segment in FY26, which will further reduce client concentration, help us better utilize our new capacities, and support more organic
and sustainable growth.

Product-wise Performance (FY25)

The Company recorded ^367.64 crore in product revenues during FY25, with the following mix:

- Cut Laminations - ^291.43 crore (79.3%): the largest contributor, reaffirming our strong market position in precision-cut CRGO
laminations.

- Assembled Cores - ^57.96 crore (15.8%): continued growth as OEMs increasingly outsources core assembly requirements.

- Slit Coils - ^8.40 crore (2.3%): steady demand from selected customers.

- Others - ^9.85 crore (2.6%): a relatively minor contribution, reflecting low focus on non-core activities.

The shift in revenue composition shows that while Cut Laminations remain the anchor business, value-added segments such as
Assembled Cores are steadily gaining share, in line with the Companys strategic direction.

Financial Performance & Ratios (FY25 vs FY24)

Ratios	FY25	FY24	Reason for change >25%
Current ratio (in times)	2.64	1.76	Due to increase in Inventory/Debtor
Debt-Service coverage ratio (in times)	1.48	1.10	Due to increase in Debts/Borrowing
Inventory turnover (in times)	6.10	7.69	-
Trade receivables turnover ratio (in times)	5.55	5.71	-
Trade payables turnover ratio (in times)	7.77	7.31	-
Net capital turnover (in times)	3.12	5.75	Due to increase in Inventory/Debtor
Return on equity ratio (in %)	0.24	0.36	Due to increase in total liabilities
Net profit ratio (in %)	0.07	0.06	-
Return on CaDital emoloved (in %)	0.26	0.45	Due to increase in total liabilities

Strategic Developments

Along with the expansion in Unit-ll, we have also successfully established a modern laboratory for sample testing of CRGO steel. This
laboratory is equipped with high-precision testing instruments imported from a world-renowned manufacturer in Germany. These
instruments are of the same standard as those relied upon by some of the worlds most reputed CRGO steel mills. We are on our way to
secure NABL accreditation for this laboratory, which will reduce lead time for our customers and enhance our credibility with high-end
transformer manufacturers. Some of the other key strategic developments underway include:

1. PGCIL & REPDCL Approvals: PGCIL certification for 400 kV class and REPDCL approval strengthens our ability to participate in large
utility projects. We are targeting PGCIL 765 kV approval within FY26.

2. CRGO Capacity Expansion: Installed capacity reached 18,060 MTPA by the end of FY25. Further it is being increased and optimized
to reach close to 24,000 MTPA in FY26.

3. Forward Integration: Unit-Ill building and machinery is fully established, with production of Core Coil Assemblies and transformers
commencing soon with an initial capacity of 1000 MVA per annum. This forward integration is mainly targeted towards export
customers in the long term and represents a significant step up the value chain.

4. EPC Business: We are preparing to enter the EPC segment targeting distribution line electrification, transmission line projects, and
substation augmentation, aligning with RDSS opportunities within the vast Indian Power sector.

Opportunities and Risks

Opportunities: The power sector in India and globally is at an inflection point, creating immense opportunities for transformer
manufacturers and allied industries:

- Indias fast-growing economy is naturally driving higher household and commercial consumption of electricity.

- Electric Vehicles (EVs) and Data Centers - The rapid adoption of EVs and the establishment of high power-consuming data centers
are expected to significantly increase electricity demand, necessitating expansion of transmission and distribution infrastructure.

- Renewable Energy Growth - The surge in renewable energy generation—solar, wind, and hybrid—will lead to decentralization of
power production, requiring new grid connections and reinforcement of existing T&D networks.

- Carbon Neutrality Goals - Global initiatives toward carbon neutrality and energy transition are pushing utilities and governments
to invest heavily in grid modernization and efficiency-enhancing equipment.

- Aging Grid Infrastructure - In both developed and developing economies, aging networks are creating steady replacement demand
for modern, high-quality transformer cores and assemblies.

To balance these opportunities, it is equally important to acknowledge the risks that can affect our growth trajectory:

Risks: CRGO price volatility, industry-wide capacity expansions that may create oversupply, and raw material supply chain disruptions.
Our mitigation strategies include customer diversification, moving up the value chain, forward integration with transformers and EPC
services, and prudent financial management.

Human Resources & ESG

Our people are the backbone of our success, and in FY25 we continued to strengthen this foundation. The headcount increased from
277 in FY24 to 405 in FY25 (a 46% rise). The Company invests in training, CRGO handling skills and building a strong safety culture.
We foster a performance-driven and safe work environment. Employee engagement remained high, with attrition at minimal levels
in key skill categories, reflecting the loyalty and commitment of our team. In recognition of employees contributions, we issued
special appreciation awards post-IPO and implemented a production-linked incentive program for shop-floor staff, which has boosted
productivity.

We remain committed to the Make in India vision: our entire manufacturing is done domestically, supporting local job creation and
supplier ecosystems in line with Atmanirbhar Bharat.

On the ESG (Environmental, Social, Governance) front, we are aligned with global best practices and national priorities. Environmentally,
our core products themselves enable energy efficiency - high-quality transformer laminations reduce no-load losses in transformers,
thereby saving energy over the equipment lifecycle. Scrap generated from the production of CRGO laminations and cores is also 100%
recycled. The Company has invested in a small solar PV installation at our facility to partly offset electricity consumption with clean
energy. We hold ISO 14001:2015 and ISO 45001:2018 certifications, demonstrating adherence to ESG commitments.

Governance is another area of strength. FY25 was our first year as a publicly listed company, and we have adhered to all SEBI LODR
requirements in both letter and spirit. We follow a robust code of conduct and have implemented enhanced internal controls. Our
quality and process certifications underscore our governance and operational rigor: we are also ISO 9001:2015 certified for quality
management.

Outlook

With expanded capacity in CRGO laminations and cores, the Company is on track to secure NABL accreditation for its newly established
testing laboratory in FY26. Within the same period, it is also aiming to obtain 765 kV approval from PGCIL. These initiatives, along with
the ongoing capacity expansion in CRGO laminations scheduled for completion by the end of the third quarter of FY26, will further
strengthen our credibility with high-end transformer manufacturers. Building on this foundation, the Company is poised to sustain
~30% volume growth in FY26 and FY27.

Further growth will be driven by the manufacturing of Core-Coil Assemblies and transformers, as well as selective entry into EPC
services. The Companys transformation from a CRGO lamination supplier into an integrated transformer solutions provider positions
it strongly for long-term growth in both domestic and international markets.

Cautionary statement

This document contains forward-looking statements based on the Companys current expectations and assumptions. Such statements
are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially due to economic
conditions, regulatory changes, tax policies, and other factors. The Company does not undertake to revise any forward- looking
statement that may be made from time to time by or on behalf of the Company.