Jyoti Ltd Management Discussions

Jyoti Limited is a leading engineering company engaged in providing innovative and reliable solutions for the Power and Water sectors. The Company designs, manufactures and supplies a wide range of hydraulic and electrical products, including pumps, pumping systems, hydro-generators, switchgear products and engineering solutions.

The Company has established a strong presence over several decades by serving critical infrastructure sectors that are essential for Indias economic development. Continuous focus on technology, product quality, operational excellence and customer satisfaction has enabled the Company to maintain its position in these sectors.

The Governments continued emphasis on strengthening power infrastructure, renewable energy, water resource management, irrigation, urban infrastructure and industrial development is expected to provide sustained opportunities for engineering companies operating in these sectors. The Company continues to improve operational efficiencies, optimise costs, strengthen project execution capabilities and enhance productivity to remain competitive in a dynamic business environment.

Opportunities and Threats

India continues to focus on infrastructure development, with the Power and Water sectors remaining key drivers of the countrys economic growth and development. With over eight decades of experience in the Power, Hydel and Lift Irrigation sectors, which are of strategic national importance, the Company is well positioned to leverage emerging business opportunities. These sectors are expected to continue offering significant growth potential, providing a positive outlook for the Companys long-term business prospects.

The Company continues to adopt a selective approach while bidding for orders, considering the competitive market environment and prevailing pricing pressures. Timely execution of projects within budgeted costs remains a key priority, while volatility in the prices of major raw materials continues to pose challenges.

Subject to market conditions and other unforeseen circumstances, the Company expects to improve its business performance during the current year. The Company remains committed to capitalising on emerging opportunities through operational excellence, prudent decision-making and effective execution, while addressing the challenges presented by the evolving business environment.

Outlook

Indias continued focus on infrastructure development, power generation, transmission, renewable energy, water conservation, irrigation and urban development is expected to create significant business opportunities for engineering companies.

Government initiatives aimed at improving energy access, strengthening transmission infrastructure, expanding water supply networks and promoting sustainable development are expected to support long-term demand for the Companys products and services.

The Company remains focused on improving operational performance, strengthening execution capabilities, enhancing customer satisfaction, expanding market reach and improving overall financial performance. The management believes that the Companys diversified product portfolio, experienced workforce and established market presence provide a strong foundation for sustainable long-term growth.

Risk and Concerns

Every industry and business segment is exposed to inherent risks that cannot be completely eliminated but can be effectively managed and mitigated through a robust risk management framework. The Company continually identifies, assesses and monitors the key risks, concerns and challenges associated with its business operations.

The present challenge for the Company is to execute competitively priced orders within the budgeted cost and timelines, while ensuring timely completion of projects without significant cost or time overruns. The availability and cost of funds continue to remain important factors influencing the Companys operations and growth plans. Financial risks, including timely servicing of debt obligations and access to adequate working capital at competitive rates, remain significant areas of focus. Project execution may also be affected by the non-availability of skilled and unskilled manpower, making talent development, competency management and employee retention increasingly important.

Segment-wise Performance

This is not applicable to the Company as there is only one identified reportable segment.

Internal Control Systems

The Company maintains adequate and effective internal control systems commensurate with the size and complexity. It also ensures that they are recorded in all material respects to permit preparation of financial statements in conformity with established accounting principles, along with the assets of the Company being adequately safeguarded against significant misuse or loss. In the opinion of the Management, the Company has adequate internal audit and control systems to ensure that all transactions are authorized, recorded and reported correctly. The internal control systems of the Company are monitored and evaluated by internal auditors and their audit reports are periodically reviewed by the management and Audit Committee. The observations and comments of the Audit Committee are placed before the Board.

Financial Performance and Operational Efficiency

The Companys revenue from operations was Rs276.53 crores in the Financial Year 2025-26 as compared to Rs244.92 crores for the previous year. The Company is continuing various corrective measures to reduce the material cost and other overheads. The Companys EBITDA was Rs23.18 crores in the Financial Year 2025-26 as compared to Rs17.17 crores during the previous year. The Net Profit for the year was at Rs18.18 crores as compared to Rs13.52 crores for the previous year.

Details of Significant Changes in the Key Financial Ratios & Return on Net Worth

Pursuant to amendment made in Schedule V to the Listing Regulations, details of significant changes (i.e. changes of 25% or more as compared to the immediately previous financial year ) in Key Financial Ratios and any changes in Return on Net Worth of the Company ( on standalone basis ) including explanations therefore are given below:

Sr. No.	Particulars	FY ended 31st March, 2026	FY ended 31st March, 2025	Explanations
i	Debtors Turnover Ratio	1.52	1.37	-
ii	Inventory Turnover Ratio	6.98	11.23	Ratio shows negative as inventories increased
iii	Intrest Coverage Ratio	Nil	Nil	-
iv	Current Ratio	0.81	0.76	-
v	Debt Equity Ratio	-6.18	-4.24	Negative Networth reduced with partial repayment of debt.
vi	Operating Profit Margin (%)	8.38%	7.01%	-
vii	Net Profit Margin (%)	6.43%	5.52%	-
viii	Return on Net Worth (%)	-53.65%	-25.98%	Ratio shows improvement in view of overall improvement in operations.

Human Resource

At Jyoti Ltd., we believe that our people are the foundation of our success. Every milestone achieved by the Company is driven by the commitment, capability and dedication of our employees. We are committed to fostering an inclusive, high-performance work environment where individuals are empowered to learn, innovate and grow.

As an equal opportunity employer, we uphold fairness, transparency and merit-based practices across all aspects of the employee lifecycle. Our Human Resources function continues to evolve as a strategic partner to the business, with a strong focus on building organizational capability and strengthening talent management processes.

During FY 2025-26, the HR function initiated several key transformation initiatives aimed at creating a future-ready workforce and enhancing organizational effectiveness. Our focus areas include:

- Strengthening the recruitment process through structured manpower planning, recruitment gap analysis and improved talent acquisition strategies.

- Developing comprehensive role-based induction programmes to enable faster integration and productivity of new employees.

- Enhancing employee development through structured learning interventions, functional capability building, and leadership development initiatives.

- Establishing clear Key Result Areas (KRAs) and Key Performance Indicators (KPIs) across functions to promote accountability, performance excellence and alignment with business objectives.

- Building a robust performance driven culture through clearly defined roles, expectations and continuous feedback mechanisms.

- Encouraging internal career mobility by providing employees with opportunities to explore new roles, broaden their capabilities and support long-term career growth.

Our learning and development philosophy is designed to support employees at every stage of their careers:

- Early Career: Building functional expertise, technical competence and role readiness.

- Mid-Career: Strengthening managerial capabilities, cross-functional collaboration and business acumen.

- Senior Leadership: Developing strategic leadership capabilities to build a resilient and future-ready organization.

Employee well-being remains a core pillar of our HR philosophy. We continue to invest in initiatives that promote a safe, healthy, inclusive, and engaging workplace, ensuring our employees remain motivated, valued, and empowered to perform at their best.

As of 31st March, 2026 Jyoti Ltd. proudly counted 213 dedicated employees who help transform challenges into opportunities every signal day.

Cautionary Statement

The statements in the Boards Report and the Management Discussion and Analysis describing the Companys objectives, explanations and predictions, may be forward looking within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed in the statements. Important factors that could influence the Companys operations include global and domestic demand and supply conditions affecting selling prices, new capacity additions, availability of critical materials and their cost, changes in government policies and tax laws, economic development of the country, and other factors which are material to the business operations of the Company.

On Behalf of the Board of Directors

Rahul N. Amin

Chairman & Managing Director

(DIN:00167987)

Place: Vadodara

Date: 14th August, 2026