JTL Defence Ltd Management Discussions

This Management Discussion and Analysis Report ("MD&AR") has been prepared pursuant to Regulation 34 read with Schedule V of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended from time to time.

1. Company Overview

JTL Defence Limited (formerly known as RCI Industries & Technologies Limited) ("the Company"), is engaged in the manufacture of non-ferrous metal products. The Company has a diversified portfolio comprising copper, brass and alloy- based products, including copper strips and foils, brass strips, stainless steel foils and phosphorous bronze strips.

The Companys corporate office and works are situated at Plot No. 84-85, HPSIDC Industrial Area, Baddi, District Solan, Himachal Pradesh-173205. Its product portfolio is directed towards applications requiring combinations of conductivity, strength, formability, corrosion resistance and dimensional precision.

FY 2025-26 was a year of significant operational transition. The audited cash-flow statement records transactions pursuant to the Resolution Plan, including proceeds from issue of equity shares and payments to financial creditors, alongside the recommencement of operating activity.

2. Industry Structure and Developments

The non-ferrous metals industry forms an important part of Indias manufacturing and industrial ecosystem. Copper, brass and other copper-based alloys are widely used across electrical and power infrastructure, transformers, switchgear, automotive components, renewable energy systems, industrial equipment, telecommunications, electronics and engineering applications.

Copper continues to be a strategically important industrial metal owing to its high electrical and thermal conductivity, durability and suitability for a wide range of industrial applications. The long-term demand outlook for copper remains supported by electrification, expansion of power infrastructure, renewable energy, electric mobility, data centres, transmission and distribution networks and increasing industrial automation.

The downstream copper and copper-alloy products industry is increasingly moving towards specialised and value-added products. Customers are placing greater emphasis on product quality, dimensional accuracy, consistency, surface finish, conductivity, mechanical properties and application-specific specifications. This creates opportunities for manufacturers with appropriate processing capabilities and established customer relationships.

The industry, however, remains exposed to fluctuations in international metal prices, foreign exchange movements, energy costs, freight costs and availability of raw materials. Changes in copper and other non-ferrous metal prices can influence the value of sales and inventory, while margins depend substantially upon the Companys ability to efficiently manage raw- material procurement, conversion costs, product mix and working capital. Further, the experience of established listed players reinforces the importance of downstream value addition and operational efficiency.

3. Business and Operational Review

The Company recorded a substantial increase in operating activity during FY 2025-26. Revenue from operations has been increased to Rs. 1,928.77 lakh during the FY 2025-26 as compared to Rs. 97.99 lakh in FY 2024-25. Total income has been increased to Rs. 2,102.05 lakh as compared to Rs. 117.72 lakh in FY 2024-25.

The scale-up in operations is also reflected in material consumption, inventory, employee costs, depreciation, finance costs and other operating expenses. Inventories stood at Rs. 3,364.67 lakh at March 31, 2026, while trade receivables stood at Rs. 2,026.94 lakh.

Managements operating focus remains on stabilizing production, improving utilisation of manufacturing assets, strengthening customer relationships, optimizing product mix, improving procurement and inventory discipline, and building sustainable operating cash flows.

4. Segment wise and Product wise performance:

Particulars	Fiscal 2026		Fiscal 2025
	Amount	In % from Revenue from operations	Amount	In % from Revenue from operations
Brass Strips & Foils	1,836.45	95.21%	-	-
Copper Strips & Foils	92.32	4.79%	-	-
Phosphorous Bronze Strips	-	-	-	-
Stainless Steel Foils	-	-	-	-
CIRP Revenue	-	-	97.99	100%
Total	1,928.77	100%	97.99	100%

Note: Revenue from operations has been bifurcated only for Fiscal 2026, as our Company was acquired through the Corporate Insolvency Resolution Process ("CIRP") in December 2025.

5. Financial Performance:

(Amount in Rs. Lakhs)

Particulars	FY 2025-26*	FY 2024-25*
Revenue from operations	1,928.77	97.99
Other income	173.28	19.73
Total income	2,102.05	117.72
Cost of materials consumed	3,288.49	8.62
Change in inventories	(2,536.44)	--
Employee benefit expenses	75.86	17.98
Finance costs	107.93	-
Depreciation and amortisation	481.12	541.25
Other expenses	679.56	186.91
Total Expenses	2,096.53	754.77
Profit/(loss) before tax	5.51	(637.05)
Profit/(loss) after tax	26.78	(644.04)
Other comprehensive income	14,159.16	--
Total comprehensive income/(loss)	14,185.93	(644.04)
Basic EPS (^)	0.19	(4.11)
Diluted EPS (^)	0.19	(4.11)

Revenue and income: Revenue from operations increased materially during FY 2025-26, reflecting the significant revival in business activity. Other income increased to ^173.28 lakh and total income increased to ^2,102.05 lakh.

Material costs: Cost of materials consumed was Rs. 3,288.49 lakh. The Companys margins remain sensitive to movements in the prices of copper, brass, alloying materials and other principal inputs. Procurement discipline, inventory management and appropriate customer pricing remain important to profitability.

Employee costs: Employee benefit expenses increased to Rs. 75.86 lakh, consistent with the increase in operating activity.

Finance costs: Finance costs amounted to Rs. 107.93 lakh during the year. Management continues to focus on liquidity, working-capital discipline and optimization of financing requirements.

Profitability: The Company reported profit before tax of Rs. 5.51 lakh and profit after tax of Rs. 26.78 lakh, compared with losses before tax and after tax of Rs. 637.05 lakh and Rs. 644.04 lakh, respectively, in FY 2024-25.

* The Company has a Wholly Owned Subsidiary (WOS) namely RCI World Trade Link DMCC, Dubai (U.A.E.). But the present management had not been provided with any information including financial or otherwise by the Resolution Professional (RP). So, the figures remains the same for Standalone and Consolidated.

6. Other Comprehensive Income and Revaluation

During the FY 2025-26, the Company recognized a revaluation gain on Property, Plant and Equipment of Rs. 18,921.26 lakh, with a related tax impact of Rs. 4,762.10 lakh. Other comprehensive income consequently amounted to Rs. 14,159.16 lakh and total comprehensive income amounted to Rs. 14,185.93 lakh.

The revaluation gain is a non-cash accounting adjustment and should be distinguished from operating profitability. Profit after tax for the year was Rs. 26.78 lakh, while the substantial increase in total comprehensive income primarily reflects the revaluation of Property, Plant and Equipment.

7. Financial Condition and Liquidity

Property, Plant and Equipment stood at Rs. 23,627.89 lakh as at March 31, 2026, compared with Rs. 4,213.85 lakh at March 31, 2025. Capital work-in-progress stood at Rs. 440.48 lakh.

Current assets stood at Rs. 7,358.27 lakh, including inventories of Rs. 3,364.67 lakh, trade receivables of Rs. 2,026.94 lakh, cash and cash equivalents of Rs. 19.26 lakh and other bank balances of Rs. 126.46 lakh.

Total equity stood at Rs. 19,621.04 lakh at March 31, 2026. Non-current borrowings stood at Rs. 5,981.64 lakh and current borrowings were nil at year-end. The Companys financing profile changed materially during the year in the context of the Resolution Plan.

Net cash used in operating activities was Rs. 1,548.43 lakh, while net cash used in investing activities was Rs. 785.58 lakh. Net cash generated from financing activities was Rs. 2,338.97 lakh, including proceeds from new borrowings, proceeds from issue of equity shares pursuant to the Resolution Plan and payment to financial creditors. Cash and cash equivalents increased from Rs. 14.30 lakh to Rs. 19.26 lakh.

8. Key Financial Ratios

As per SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2018 (as amended), the Company is required to provide details of significant changes (change of 25% or more as compared to immediately previous year) in key financial ratios. Accordingly, the Company has identified the following ratios as key financial ratios:

Ratio	FY 2025-26	FY 2024-25	% Change
Debtors Turnover Ratio (times)	1.23	T>0.09	1300.49%
Inventory Turnover Ratio (times)	1.93	0.21	821.45%
Interest Coverage Ratio (times)	5.51	N.A.	N.A.
Current Ratio (times)	2.86	0.12	2302.36%
Debt-Equity Ratio (times)	0.30	-1.39	121.99%
Operating Profit Margin (%)	28.29	-81.38	134.76%
Net Profit Margin (%)	0.01	-6.57	100.21%
Return on Net Worth (%)	0.14	4.17	-96.73%

The Reason for significant change: The company was under Corporate Insolvency and Resolution Process ("CIRP") till October 09, 2025. The Honble NCLT vide its order dated October 09, 2025 approved the Resolution Plan as submitted by JTL Industries Limited, the Successful Resolution Applicant ("SRA"). The Company was handed over to present management w.e.f December 08, 2025 when the Resolution Plan was successfully implemented and Monitoring Committee was dissolved. Hence, the figures of FY 2025-26 also include figures of the CIRP Period. Therefore, comparison with previous year is not representative of the companys working.

9. Opportunities

The Company operates in the downstream non-ferrous metals industry, with a diversified product portfolio comprising copper, brass and other alloy-based products, including strips and foils. The Company believes that the evolving requirements of key end-user industries, coupled with opportunities for product diversification, value addition and operational efficiencies, provide a platform for sustainable growth.

a) Growing Demand Across Key End-User Industries

The continued development of electrical and electronics, automotive, engineering, infrastructure and renewable energy sectors is expected to support demand for copper, brass and specialised non-ferrous metal products. The increasing emphasis on electrification, energy efficiency and technological advancement also provides opportunities for manufacturers offering products with consistent quality and application-specific characteristics.

b) Expansion of Value-Added and Specialized Products

There is an opportunity to increase the contribution of value-added and specialised strips, foils and alloy-based products catering to specific customer and industry requirements. The Company intends to leverage its manufacturing capabilities, product knowledge and quality systems to develop and supply products with enhanced technical specifications, thereby supporting customer retention and improving realisations.

c) Product Diversification and Application Development

The Companys presence across copper, brass, stainless steel and other alloy-based products enables it to cater to a range of industrial applications and customer requirements. Further diversification of the product portfolio and development of products for emerging applications may provide opportunities to broaden the Companys customer base and reduce dependence on any single product or end-use segment.

d) Capacity Utilization and Operational Scaling

Improvement in capacity utilization, production efficiencies and manufacturing scale provides an opportunity to support revenue growth while enhancing the utilization of existing resources. As manufacturing operations stabilize and scale, the Company will continue to focus on improving productivity, process efficiencies and overall asset utilization.

e) Expansion of Domestic and Export Markets

The Company sees opportunities for selective expansion of its customer base across domestic and international markets. Strengthening relationships with existing customers, developing new customer relationships and exploring additional geographies, including export markets, may provide opportunities for growth, subject to market conditions, commercial viability and customer requirements.

f) Operational Efficiency and Cost Optimization

Improvement in procurement practices, production planning, inventory management, quality control and working-capital discipline provides opportunities to strengthen operational efficiency and competitiveness. The Company will continue to focus on process improvements and prudent resource utilization with a view to enhancing operational performance

and supporting sustainable margins.

g) Emerging Opportunities in Specialized and Precision Applications

The increasing requirement for specialized materials in precision engineering and other technically demanding applications provides opportunities for manufacturers with appropriate technical and manufacturing capabilities. The Company intends to evaluate such opportunities selectively and develop products in line with customer specifications and commercial feasibility.

10. Threats, Risks and Concerns

a) Raw material price volatility: Copper, brass, alloying materials and other inputs are subject to commodity-price movements that can affect margins and working-capital requirements.

b) Demand and market risk: Demand is influenced by the performance of electrical, electronics, automotive, engineering, infrastructure and other end-use industries.

c) Working-capital risk: Inventory and receivables can require significant funding. Delays in collections or elevated inventories may affect liquidity.

d) Foreign exchange risk: Imports, exports or other foreign-currency exposures, if any, may affect costs and profitability through exchange-rate movements.

e) Competition: Competition may arise from domestic and international manufacturers on price, quality, technology, delivery and customer service.

f) Manufacturing and quality risk: Equipment breakdowns, production interruptions or failure to meet customer specifications may adversely affect operations and customer relationships.

g) Energy and operating costs: Electricity, fuel, labour, logistics and other operating costs may increase and may not always be fully recoverable through product pricing.

h) Regulatory and environmental risk: Manufacturing operations remain subject to applicable environmental, health and safety, labour, taxation and other regulatory requirements.

i) Liquidity and financial risk: The Company remains focused on maintaining adequate liquidity and disciplined working- capital management while scaling operations.

11. Outlook

The Companys immediate priority is to establish a stable and scalable manufacturing facility following the completion of the resolution process and recommencement of operations.

Managements focus is on increasing capacity utilisation, improving throughput, optimising plant operations, expanding the customer base and increasing the contribution of value-added products.

The Company intends to leverage its manufacturing facility at Baddi and its existing product capabilities to serve customers across electrical and power, infrastructure, automotive, industrial, renewable energy and defence-related applications.

Management has indicated that the Company is targeting a gradual increase in operating scale and aims to restore revenue levels achieved during the Companys earlier operating period over the medium term. The strategy is expected to be supported by capacity utilisation improvement, product diversification, OEM/customer empanelment and increased value addition.

The Company remains cautiously optimistic about the medium- to long-term prospects of the business, while recognising that the pace of recovery will depend on market conditions, execution, working-capital availability, customer acceptance and the successful scaling of manufacturing operations.

12. Internal Control Systems and Their Adequacy

The Company maintains internal control systems and procedures commensurate with the nature and scale of its operations. The control framework is intended to safeguard assets, ensure appropriate authorisation and recording of transactions, promote operational efficiency, support reliable financial reporting and assist compliance with applicable statutory and regulatory requirements.

The Audit Committee reviews the adequacy and effectiveness of internal financial controls and related matters in accordance with its terms of reference and applicable regulatory requirements. The Company will continue to strengthen its control environment in line with the scale and complexity of its operations.

13. Human Resources and Industrial Relations

Human resources remain an important component of the Companys manufacturing and operational capabilities. Employee benefit expenses increased to Rs. 75.86 lakh in FY 2025-26 from Rs. 17.98 lakh in FY 2024-25, reflecting the revival of business activity.

The Company seeks to maintain a work environment that promotes productivity, operational discipline, employee development and compliance with applicable health, safety and employment requirements.

As at March 31, 2026, the Company had a total workforce of 55 employees.

14. Accounting Treatment

The financial statements for FY 2025-26 have been prepared in accordance with the applicable Indian Accounting Standards (Ind AS) and other applicable provisions of the Companies Act, 2013. The accounting policies and treatments adopted by the Company are set out in the accompanying notes to the financial statements.

15. Cautionary Statement

Statements in this MD&A describing the Companys objectives, expectations, estimates, projections or predictions may constitute forward-looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied due to, among other factors, changes in economic conditions, industry demand, commodity prices, foreign exchange rates, competition, availability and cost of raw materials, regulatory changes, financing conditions, operational performance and other risks and uncertainties.

The Company assumes no obligation to publicly update or revise any forward-looking statements on the basis of subsequent events, information or developments, except as may be required under applicable laws and regulations.

16. Basis and Regulatory Coverage

This MD&A has been structured to address the matters specified in Schedule V(B) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, including industry structure and developments, opportunities and threats, product-wise performance, outlook, risks and concerns, internal controls, financial and operational performance, and human- resource/industrial-relations matters. It should be read with the other disclosures forming part of the Annual Report.

The quantitative financial information in this MD&A is based on the audited standalone financial statements for the year ended March 31, 2026.

Sd/-	Sd/-
Pranav Singla	Dhruv Singla
Managing Director	Whole-time Director
DIN: 07898093	DIN: 02837754
Date: 29.08.2026
Place: Chandigarh