Kabra Extrusion Technik Ltd Management Discussions

I. Global Economy Overview

The global economy in FY26 is operating in a markedly challenging and uncertain environment, shaped by elevated geopolitical tensions, persistent inflationary pressures, and a gradual slowdown in momentum following the post pandemic recovery. As highlighted in the International Monetary Funds World Economic Outlook (April 2026), the outbreak of conflict in the Middle East in early 2026 constituted a major negative shock, disrupting what had previously been a period of relative resilience supported by technology related investment, accommodative financial conditions, and easing trade frictions. The conflict has underscored the growing fragility of the global economic backdrop and the increasing influence of geopolitical developments on macroeconomic outcomes.

Global real GDP growth is projected to moderate to about 3.1% in 2026, compared with approximately 3.4% in 2025, reflecting the adverse impact of higher energy prices, weaker confidence, and tighter financial conditions. While growth is expected to recover marginally to around 3.2% in 2027, it remains below long term historical averages, pointing to a subdued medium term trajectory. Advanced economies are projected to grow modestly, constrained by restrictive monetary policy settings, high public debt levels, and demographic challenges. In contrast, emerging market and developing economies are expected to continue contributing the bulk of global growth, although at a slower pace than in recent years, with outcomes varying significantly based on energy dependence, external vulnerabilities, and domestic policy buffers.

The recent progress on global disinflation has been interrupted by renewed supply side pressures. Headline inflation is projected to rise from about 4.1% in 2025 to 4.4% in 2026, driven primarily by sharp increases in energy and food prices following disruptions to oil and gas production and transportation. Although inflation is expected to ease in 2027 as commodity markets gradually normalize, price pressures remain uneven across countries, with several economies facing continued risks of inflation persistence. In this context, central banks have remained cautious, prioritizing price stability and the anchoring of inflation expectations. Global financial conditions have tightened moderately, risk premiums have increased, and capital flows to more vulnerable economies have become more selective.

Global trade activity has also softened in this environment. World trade volume growth is expected to slow significantly in 2026, reflecting weaker demand, higher transportation and input costs, and ongoing reconfiguration of global supply chains. Goods trade has been more adversely affected, while services trade has demonstrated greater resilience, supported by digitalization and the increasing tradability of knowledge based services. At the same time, heightened volatility in commodity markets has strained the external balances of net importing countries, particularly low income and energy dependent economies, while benefiting some commodity exporters in nominal terms.

Looking ahead, the balance of risks to the global outlook remains tilted to the downside. A prolonged or intensifying geopolitical conflict, further disruptions to energy supplies, sharper tightening in global financial conditions, or a correction in risk asset prices could materially weaken growth prospects. Scenario analysis by the IMF suggests that under more adverse conditions, global growth could slow toward recessionary levels, with inflation remaining elevated. Over the medium term, global growth is expected to remain modest, constrained by geopolitical fragmentation, slower productivity growth in major economies, and reduced dynamism in trade and capital flows. Nevertheless, potential upside exists if technological advances?€”particularly in artificial intelligence?€”translate into durable productivity gains, and if renewed policy coordination and structural reforms support investment and confidence. Overall, the global economic environment in FY26 is characterized by moderated growth, elevated uncertainty, and heightened sensitivity to geopolitical and policy developments, requiring businesses and policymakers alike to navigate an increasingly complex and volatile landscape.

II. INDIAN ECONOMY OVERVIEW

The Indian economy demonstrated notable resilience and underlying strength during FY26 despite a complex and evolving global macroeconomic environment. Heightened geopolitical tensions?€”particularly the escalation of conflict in West Asia?€”led to sharp volatility in global energy prices and disrupted trade and financial flows. Nevertheless, India sustained its position as the fastest growing major economy, supported by robust domestic demand, investment momentum, policy continuity, and a relatively stable macroeconomic framework.

As per national accounts data compiled using the revised 2023-24 base series, Indias real Gross Domestic Product (GDP) is estimated to have grown by 7.6% in FY26, improving from 7.1% in FY25. Quarterly performance remained strong, with real GDP and Gross Value Added (GVA) both expanding by 7.8% in 3QFY26, though some moderation was visible toward the end of the year. High frequency indicators suggested that while growth momentum remained intact through January and February 2026, early signs of softening appeared in March owing to global supply side shocks and rising input costs.

Growth Drivers and Demand Conditions

Economic growth in FY26 was largely driven by domestic demand. Private Final Consumption Expenditure (PFCE)?€”the largest component of GDP?€”recorded strong growth of around 7.7%, benefitting from low inflation for most of the year, tax reforms aimed at increasing disposable incomes, and improving labor market conditions. Consumption demand remained broad based across urban and rural segments, with supporting evidence from automobile sales, services activity, and retail indicators.

Investment demand also remained a key pillar of growth. Gross Fixed Capital Formation (GFCF) grew by about 7-8%, supported by sustained public capital expenditure, improved balance sheets in the corporate and banking sectors, and a gradual revival in private investment intentions. The investment to GDP ratio averaged around 32%, and Indias incremental capital output ratio (ICOR) remained stable at approximately 4.4, indicating efficient deployment of capital.

On the external front, net exports exerted a marginal drag on growth. Export volumes grew modestly amid weak global demand, while imports expanded at a faster pace due to strong domestic consumption and higher energy prices. Consequently, the contribution of net exports to GDP growth turned negative in the latter part of FY26.

Outlook and Risks

Looking ahead, Indias medium term growth prospects remain favourable, supported by structural reforms, digital public infrastructure, demographic advantages, and sustained public investment. Multilateral agencies project Indias GDP growth at around 6-6.5% in FY27 and FY28, still well above global averages. However, near term risks have increased due to elevated geopolitical tensions, energy price volatility, and potential spillovers to inflation, fiscal balances, and external accounts.

Overall, FY26 reaffirmed the Indian economys resilience and adaptability. While external shocks have heightened uncertainty, a strong domestic demand base, prudent macroeconomic management, and continued reform momentum position India relatively well to navigate an increasingly volatile global environment.

III. INDUSTRY OVERVIEW

1. Plastic Extrusion Machinery Sector Growth Dynamics

The Plastic Extrusion Machinery Market expanded from USD 7.74 billion in 2025 to USD 8.24 billion in 2026, reflecting robust growth. Forecasts indicate a compound annual growth rate (CAGR) of 6.72%, reaching USD 12.22 billion by 2032. This upward trajectory underscores a sustained global demand driven by transformative shifts in manufacturing environments, evolving end-user industry requirements, stricter regulatory compliance, and a heightened emphasis on sustainable and high-efficiency production processes. Substantial investments in machinery modernization and digitalized production lines confirm that the plastics extrusion industry is transitioning into a data-driven operational phase, empowering manufacturers worldwide to enhance adaptability and optimize performance.

Market Scope and Emerging Trends

Machine Types: The market offers a comprehensive range of extruders?€”including single screw, twin screw, and multi screw models?€”catering to diverse application needs. These machines support both standard product manufacturing and specialized compounding for unique material processing demands.

Polymer Variants: Equipment is designed to process a variety of polymers such as acrylonitrile butadiene styrene (ABS), polypropylene (PP), polyethylene (PE), polystyrene (PS), and polyvinyl chloride (PVC), addressing the requirements of packaging, construction, automotive, and medical industries.

Automation Levels: Solutions encompass fully automated extrusion lines with integrated control systems, as well as manual and semi-automatic configurations, ensuring flexible adaptation to varying plant sizes and customization needs.

Applications: Core applications include extrusion of pipes, profiles, sheets, films, wires, and cables. The market is also witnessing growth in advanced uses such as barrier films and eco-friendly jacketing compounds, targeting emerging industry segments.

End-Use Industries: Demand is driven by sectors including consumer goods, building materials, automotive parts, medical devices, and packaging. These industries prioritize machinery that delivers consistent quality and versatile production capabilities.

Technological Advancements: The integration of digital twins, predictive maintenance, advanced melt filtration, and modular production units is revolutionizing operational efficiency. These technologies enable manufacturers to upgrade workflows and position their facilities for future market developments.

The Plastic Extrusion Machinery Market is poised for sustained growth fuelled by innovation, regulatory pressures, and evolving industry demands. The manufacturers prudently investing in digital transformation and flexible, high-performance equipment will lead the sectors next phase of expansion.

SOURCE: Research and Markets - Plastic Extrusion Machinery Market - Global Forecast 2026-2032

Flexible Packaging (Brown Film)

Flexible packaging utilizes a variety of materials such as polymers, paper, films, aluminum foil, cellulose, bioplastics, and laminated films. The selection of material is guided by packaging needs including barrier effectiveness, sealing ability, durability, print quality, cost efficiency, and environmental considerations.

Plastics continue to dominate the industry as the preferred material because of their affordability, strength, moisture resistance, versatility, strong barrier properties, and ease of use.

The Blown Film Extrusion Machine Market is projected to grow from USD 8.2 billion in 2025 to USD 12.7 billion by 2035, at a CAGR of 4.5%. This growth is driven by rising demand for high-speed film production and flexible packaging solutions, fuelled by consumer preferences for lightweight, durable, and sustainable packaging. Manufacturers are prioritizing automation, energy efficiency, and precision control to boost production efficiency and minimize downtime. Market expansion is further supported by increased consumption of packaged goods and growth in food processing and pharmaceutical sectors, especially in emerging economies. Environmental concerns are accelerating the adoption of recyclable and thinner films, while smart manufacturing and IoT integration are transforming operations. Investments in multilayer extrusion technologies and high-barrier films for specialty packaging will drive the deployment of advanced, intelligent extrusion systems in the coming years.

SOURCE: Future Market Insights Inc. - Blown Film Extrusion Machine Market Size and Share Forecast Outlook 2025 to 2035

Polymer Pipe Industry

The India plastic pipes market, valued at USD 2.10 billion in 2025, is projected to reach USD 3.65 billion by 2034, growing at a CAGR of 6.30%. This robust growth is driven by government initiatives such as the Jal Jeevan Mission and Smart Cities Mission, expansion in agricultural irrigation, and rising real estate developments in tier-2 and tier-3 cities. The shift from conventional materials to durable, corrosion-resistant, and cost-effective plastics like PVC, HDPE, and CPVC is accelerating market adoption, supported by sustainable infrastructure projects and smart urban development.

Rapid urbanization and increased construction of industrial, commercial, and residential buildings are fuelling demand for long-lasting plastic piping systems. The agricultural sector remains a key driver, with extensive use of plastic pipes in drip and sprinkler irrigation to enhance water efficiency and crop yields. Growing water conservation efforts and smart city projects are boosting demand for leak-resistant, low-maintenance pipes. Enhanced retail and distribution channels, along with organized supply chains, are improving accessibility, standardization, and end-user confidence, solidifying plastic pipes as the preferred choice across diverse end-use segments.

SOURCE: IMARC Groups report titled India Plastic Pipes Market Size, Share, Trends and Forecast by Type, Diameter, End Use, and Region, 2026-2034

Union Budget 2026-27: Key Announcements for Plastics Extrusion Machine Manufacturers

The Union Budget 2026-27 emphasizes infrastructure-driven growth by raising capital expenditure by 9% to 12.2 lakh crore, up from 11.21 lakh crore in FY26. The Effective Capital Expenditure is projected at 17.15 lakh crore, representing 4.4% of GDP. The budgets primary focus areas are manufacturing, railway expansion, and digital infrastructure development.

Union Budget 2026-27 and Other Announcements: Growth Accelerators for Plastics Extrusion Machine Manufacturers

MSME Support & Growth Fund : The government has launched a 10,000 crore SME Growth Fund to support high-potential enterprises, along with a 2,000 crore top-up for the Self-Reliant India Fund to facilitate easier capital access for manufacturers.

Electronics & Component Manufacturing Boost: The outlay for the Electronics Components Manufacturing

Scheme has been increased to 40,000 crore, which is expected to boost demand for plastic components used in electronics.

Container Manufacturing Scheme: A new 10,000 crore, five-year Container Manufacturing Scheme has been introduced to enhance domestic container production, driving demand for plastic products in the logistics sector.

Infrastructure & Industrial Clusters: A scheme has been launched to revive 200 legacy industrial clusters through technology upgrades.

Tax & Customs Reforms: o A deferred duty payment system has been introduced for trusted manufacturers. o A five-year income tax exemption has been granted to non-residents supplying capital goods, equipment, or tooling to manufacturers operating in bonded zones, which will reduce costs for advanced machinery. o Furthermore, limits for duty-free imports of specified inputs have been increased to support exports.

Jal Jeevan Mission 2.0: The Cabinet has approved increasing the Jal Jeevan Mission (JJM 2.0) outlay to INR 8.69 lakh crore, with central assistance rising to INR 3.59 lakh crore, an additional INR 1.51 lakh crore since 2019-20. JJM 2.0 aims to provide tap water connections to all 19.36 crore rural households by December 2028, ensuring scheme sustainability and timely delivery through state-specific MoUs. The mission shifts to a citizen-centric, utility-based approach, targeting 24?—7 rural drinking water supply aligned with the vision of Viksit Bharat @2047.

The above policies aim to accelerate the industrys shift toward high-technology production. It is poised to strengthen the capital goods ecosystem for the Plastics Extrusion Machine Industry.

SOURCE: www.pib.gov.in and Union Budget Speech 2026-27

2. Electric Vehicle and Allied Industries

Indias electric mobility shift is accelerating, backed by strong policy support, falling battery costs, and a rapidly strengthening domestic manufacturing base. The country is moving decisively away from import dependence toward becoming a competitive global hub for EV production, aligned with its goals of energy security, lower oil imports, and its 2070 net-zero target.

This transformation is already evident. EV sales have risen sharply from around 50,000 units in 2016 to over 2 million in 2025, positioning India among the fastest-growing EV markets globally. Adoption is led by cost-efficient two-wheelers and high-usage three-wheelers dominating urban and last-mile mobility, while passenger vehicles are steadily scaling. At the same time, electric buses and commercial fleets are emerging as core components of public transport and logistics.

With demand incentives, localisation push, and expanding charging infrastructure, India has entered a scale-up phase. As global supply chains realign, India is positioning itself as a key destination for EV manufacturing and investment. The outlook for Indias EV market remains highly compelling. As per Grand View Horizon - India Electric Vehicle Market Size & Outlook, 2026-2033, the sector is projected to expand significantly from USD 20.2 billion in 2025 to USD 178.2 billion by 2033, registering a strong CAGR of 29.4%. This rapid growth is being driven not only by supportive government policies but also by rising consumer awareness and continuous improvements in EV infrastructure. As per Modor Intelligence - India EV battery pack market share & size analysis - growth trends & forecasts (2026-31), Indias EV battery pack market is set for rapid expansion, rising from USD 39.39 million in 2025 to USD 53.76 million in 2026, and projected to reach USD 254.59 million by 2031, growing at a CAGR of 36.5%. This growth is driven by declining cell costs, government incentives such as Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II) and Production Linked Incentive for Advanced Chemistry Cell (PLI ACC), and increasing global investments in gigafactories, positioning India as a key node in Asias EV supply chain.

While passenger vehicles continue to lead battery demand, rising adoption of electric buses and fleet vehicles is gradually shifting the volume mix. Manufacturers are moving toward Lithium Iron Phosphate (LFP) and emerging

Lithium Manganese Iron Phosphate (LMFP) chemistries to enhance safety, optimise energy density, and reduce raw material risks. At the same time, newer players are adopting cell-to-pack designs and 800 Volt architectures to enable faster charging, while established companies are investing in backward integration to protect margins and strengthen supply chains.

EV Sales Comparison

Category	FY25	FY26	YoY Change
E-2 Wheelers	11,50,790	14,01,818	21.8%
E-3 Wheelers	6,98,914	8,30,819	19.0%
E-4 Wheelers	108,873	199,923	83.6%
E-CV	8,820	19,454	120.6%
Grand Total	19,67,397	24,52,014	24.6%

SOURCE: FADA

FY26 marked a defining inflection point in Indias electric mobility trajectory, with total EV retail sales reaching 2.5 million units, representing a robust year-on-year growth of 24.6%. This growth was broad-based, with all major segments delivering strong double-digit expansion.

The E-4 Wheelers segment led the surge, recording sales of 1,99,923 units in FY26, a sharp rise of 83.6% YoY. The E-4 Wheelers share in total EV sales expanded by 262 bps to 8.2% in FY26. The E-2 Wheelers continued to scale rapidly as a mass-market solution, growing 21.8% YoY to 14,01,818 units. However, The E-2 Wheelers share in total EV sales contracted by 132 bps to 57.2% in FY26. The E-3 Wheelers sales grew by 19.0% YoY to 8,30,819 units in FY26. However, The E-3 Wheelers share in total EV sales contracted by 164 bps to 33.9% in FY26. Meanwhile, E-CV emerged as the fastest-growing category, more than doubling with a 120.6% YoY increase to 19,454 units. The E-VC share in total EV sales expanded by 35 bps to 0.8% in FY26.

Indias EV growth story is no longer confined to the automotive sector?€”it reflects the countrys accelerating transition toward sustainable and scalable mobility solutions. From last-mile connectivity to personal transportation, the momentum across segments highlights Indias rising capability to lead a large-scale, mass-market energy transition.

Government Initiatives: Key Announcements for EV Industry

PM E-DRIVE Scheme: A INR 10,900 crore program, valid until March 2028, designed to accelerate EV adoption through direct upfront price reductions for electric two-wheelers, three-wheelers, trucks, and ambulances. The scheme also supports the deployment of electric buses for public transport and expands charging infrastructure across the country.

PLI Scheme for ACC Battery Storage: This initiative provides financial incentives to foster a competitive domestic battery manufacturing ecosystem, with the objective of reducing battery costs and strengthening supply chain resilience.

Phased Manufacturing Program (PMP): The program promotes higher domestic value addition by encouraging manufacturers to progressively source EV components locally, thereby reducing reliance on imports.

Favourable Tax Rates: A concessional Goods and Services Tax (GST) rate of 5% is maintained on EVs and EV chargers, making electric mobility more affordable and accessible to consumers.

IV. Company Overview

Kabra Extrusiontechnik Limited ("KET" or "the Company") is one of Indias leading manufacturers of plastic extrusion machinery and a key player in the evolving advanced energy solutions space. With a legacy of over four decades, the Company is part of the reputed Kolsite Group and has built a strong global presence across more than 100 countries, supported by a robust installed base and long-standing customer relationships. The Company operates through two core business segments:

1. Extrusion Machinery (Core Business)

KETs legacy business is centered around the manufacturing of plastic extrusion machinery, primarily catering to pipe extrusion and blown film/flexible packaging applications. The Company continues to hold a strong leadership position in the domestic market, supported by its robust engineering expertise, deep understanding of application requirements, and long-standing relationships with customers across both domestic and international markets. This combination has enabled KET to build a resilient and trusted market presence over the years.

The Company has consistently focused on technological advancement, process efficiency, and product customization to meet evolving industry needs. Its offerings include high-output, energy-efficient extrusion systems, advanced multilayer film technologies, and solutions compatible with sustainable and recyclable materials. These capabilities position the Company well to address changing customer demands and industry trends focused on efficiency and sustainability. During FY26, the extrusion segment faced some moderation in demand due to factors such as slower execution and fund disbursement under government initiatives like the Jal Jeevan Mission (JJM), delays in infrastructure spending by state governments, and weakness in export markets arising from geopolitical challenges and currency volatility. Despite these short-term headwinds, the long-term outlook remains positive, driven by increasing demand for polymer pipes, growth in the flexible packaging segment, and continued government emphasis on water and sanitation infrastructure development.

2. New Energy Business - GEON

KETs new energy division, GEON, represents the Companys strategic entry into the rapidly expanding electric vehicle (EV) and energy storage markets. The division was initiated around 2018 through technology collaborations, with commercial manufacturing commencing in 2020. Over the years, GEON has developed significant scale, with an installed battery pack manufacturing capacity of approximately 7 GWh at its Chakan facility, supported by investments of nearly USD 30 million (INR 250 Crores) toward capacity creation and technology development.

GEON has built strong capabilities across the entire battery value chain, including end-to-end design, integration, and manufacturing of lithium-ion battery packs. The division operates on a technology-agnostic model, sourcing cells globally while focusing on system-level innovation and efficiency. It is supported by a strong in-house R&D team comprising over 100 engineers dedicated to product development, performance optimization, and adapting battery systems to Indian operating conditions.

The division has established a growing market presence, with over 400,000 battery packs deployed in the field. Its product portfolio caters to a wide range of applications, including electric two-wheelers, three-wheelers, passenger vehicles, and high-voltage and off-road applications. In addition, GEON has expanded into stationary applications such as energy storage systems and inverter batteries, thereby diversifying its use cases beyond mobility.

Strategically, GEON is accelerating its expansion into adjacent segments such as Battery Energy Storage Systems (BESS), telecom and solar storage solutions, commercial and industrial (C&I) energy storage, and the B2C lithium-ion battery market for power backup. While mobility currently accounts for around 70-80% of revenues, the contribution from energy storage applications is poised to contribute in the coming years, reflecting the divisions intent to build a diversified and future-ready energy solutions portfolio.

A. Key Strengths

1. Established Market Leadership in Core Business

Kabra Extrusiontechnik Limited enjoys a strong leadership position in the domestic plastic extrusion machinery market, supported by over four decades of industry experience. The Company has developed deep domain expertise across pipe and film extrusion applications, enabling it to cater to a wide range of customer requirements across industries and geographies.

2. Diversified Business Model with Dual Growth Engines

The Company operates through a balanced portfolio comprising its legacy extrusion business and the high-growth new energy division (GEON). While the extrusion business provides stability and cash flow generation, the energy division offers exposure to emerging sectors such as EV batteries and energy storage, creating a strong long-term growth platform.

3. Early Mover Advantage in Energy Storage & EV Ecosystem

Through GEON, KET has established an early presence in the lithium-ion battery and energy storage market, with operational manufacturing capabilities since 2020. The division has already deployed 400,000+ battery packs, demonstrating strong execution capabilities and real-world operating experience in the EV ecosystem.

4. Strong In-House Design, R&D and Engineering Capabilities

A key differentiator for the Company is its strong engineering and product development capabilities, supported by a dedicated R&D team. In the energy business, GEON has 100+ engineers focused on design and development, enabling the Company to customize battery systems for Indian conditions and customer-specific applications.

5. Technology-Agnostic and Asset-Light Approach in Energy Business

KET follows a technology-agnostic approach in its battery business, sourcing cells globally while focusing on design, integration, and system optimization. This allows flexibility, reduces technology risk, and enhances the ability to adopt evolving battery chemistries without heavy capital investments in cell manufacturing.

6. Strong Manufacturing Infrastructure with Scalability

The Company has built a robust manufacturing base, including a ~7 GWh battery pack capacity at its Chakan facility. Investments in automation and a robotic manufacturing setup position the business to scale efficiently as demand grows.

7. Expanding Product Portfolio Across Mobility and Energy Storage

GEON has diversified beyond its initial focus on two-wheeler EV batteries into:

3-wheelers, 4-wheelers, and high-voltage applications

Telecom, solar, and inverter storage

Emerging BESS opportunities

This diversification reduces dependence on a single segment and strengthens long-term growth visibility.

8. Strong Order Visibility and Revenue Potential in Energy Business

The Company has secured a ~INR 150 Crore order for execution in the upcoming year and has the potential to scale revenues significantly as capacity utilization improves. At optimal levels, the existing facility can generate INR 1,500+ crore revenue, highlighting the scalability of the business model.

B. Financial Performance Snapshot

Particulars (in INR Cr.)	FY25	FY26	Change (in %)
Revenue	477	451	(5.45%)
Gross Profit	186	170	(8.60%)
Gross Profit Margin (%)	38.9%	35.64%	326 bps
EBITDA	52	13.05	(74.88%)
EBITDA Margin (%)	10.9%	2.9%	(8%)
EBIT	45	7.16	(83.95%)
PAT	34	(2.44)	(107.21%)
PAT Margin (%)	7.2%	(0.54)	(107.63%)
EPS (In INR)	9.69	(0.70)	(107.21%)

KETs revenues stood at INR 451 crores in FY26 as compared to INR 477 crores in FY25, registering a decline of 5.45% year-on-year. The Companys EBITDA stood at INR 13.05 crores in FY26 against INR 52 crores in FY25. Consequently, the EBITDA margin declined to 2.9% in FY26 from 10.9% in FY25.

KET reported an EBIT of INR 7.16 crores in FY26 as compared to INR 45 crores in FY25. The Company recorded a net loss, with PAT standing at INR (2.44) crores in FY26 against a profit of INR 34 crores in FY25. Accordingly, the PAT margin stood at (0.54)% in FY26 compared to 7.2% in FY25.

C. Key Financial Ratios

In accordance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations") and the Company is required to give details of significant changes (change of 25% or more) as compared to the immediately previous financial year) in key sector-specific financial ratios.

Particulars	% Change	Reasons for Variation
Debtors Turnover	5.20%
Inventory Turnover	(13.10%)	Due to increase in inventory and Lower sale
Interest Coverage Ratio	39.20%
Current Ratio	(7.20%)
Debt Equity Ratio	16.70%
Operating Profit Margin	(8%)	Due to lower sale
Net Profit Margin	(107.6%)	Due to lower sale
Return on Capital Employed	(86.50%)

D. Business Outlook

The outlook for Kabra Extrusiontechnik Limited remains anchored in its dual-business strategy, comprising its established extrusion machinery business and its emerging new energy segment under GEON. While near-term demand conditions in the extrusion segment have remained subdued, the long-term growth trajectory continues to be supported by structural drivers such as infrastructure development, water management initiatives, and increasing demand for advanced plastic processing solutions.

In the extrusion business, demand is expected to gradually improve with the revival of government-led infrastructure spend, particularly under programs like the Jal Jeevan Mission and other water and sanitation initiatives. The polymer pipe segment is poised for long-term expansion driven by increasing urbanisation, housing demand, and the transition from conventional materials to polymer-based solutions. Additionally, the flexible packaging segment is expected to witness steady growth, supported by rising consumption across FMCG, pharmaceuticals, and e-commerce sectors. The Company continues to focus on enhancing its product portfolio through high-performance, energy-efficient systems and solutions compatible with sustainable and recyclable materials, positioning itself to benefit from evolving industry requirements.

The GEON division is expected to emerge as a key growth driver over the medium to long term, supported by strong tailwinds in the electric mobility and energy storage sectors. Increasing adoption of EVs, favourable government policies, and growing demand for efficient energy storage solutions are expected to drive significant opportunities for the Company. The division is expanding its presence across multiple applications, including electric vehicles, telecom, solar storage, and commercial and industrial energy solutions. The Company is also actively exploring opportunities in the Battery Energy Storage Systems (BESS) space, which is expected to play a critical role in renewable energy integration and grid stability.

From an operational perspective, the Company is focused on scaling up the utilization of its existing battery manufacturing capacities, strengthening its order book, and improving operating efficiencies. The battery business is expected to move towards profitability as volumes scale up, supported by execution of secured orders and a growing customer base. The Companys strategic focus on design, integration, and system optimization, combined with its investments in automation and technology, is expected to drive long-term competitiveness.

Overall, KET is well-positioned to leverage its engineering expertise, diversified product portfolio, and presence in high-growth sectors, enabling it to navigate short-term challenges while capitalizing on long-term opportunities across both its core and emerging businesses.

E. Risks and Challenges

The Companys operations remain exposed to risks arising from cyclical demand conditions in its core extrusion business, which is closely linked to infrastructure spending and capital investment cycles. Any delays in government projects, particularly under initiatives such as the Jal Jeevan Mission, along with moderation in state-level infrastructure spending, may impact order inflows and overall performance. In addition, volatility in export markets due to geopolitical uncertainties and currency fluctuations could affect the Companys international business.

The scaling of the new energy business under GEON also presents execution-related risks, as the division is still in a growth phase. The Companys ability to ramp up production, secure consistent order flows, and achieve optimal capacity utilization will be critical for improving profitability. Further, rapid technological advancements in battery technologies and energy storage solutions necessitate continuous investment in research and development to remain competitive and avoid obsolescence.

The Company is also exposed to supply chain risks, particularly in the battery segment, where key components are sourced globally. Any disruptions, price volatility, or dependency on external suppliers could impact operations and margins. Additionally, increasing competition across both the extrusion and energy segments, coupled with evolving regulatory and policy frameworks, may influence growth prospects and profitability.

V. Internal Control System and Their Adequacy

The Companys internal audit system is geared towards ensuring adequate internal controls commensurate with the size complexity and needs of the business, with the objective of efficient conduct of operations through adherence to the Companys policies, identifying areas of improvement, evaluating the reliability of financial statements, ensuring compliance with applicable laws and regulations and safeguarding of assets from unauthorized use. The Company has appointed a firm of Chartered Accountants as Internal Auditors in compliance of Section 138 of the Companies Act, 2013 to conduct internal audit of functions and activities of the Company. They report on quarterly basis to the Company on their findings. The Report is reviewed by the Audit Committee Members and Statutory Auditors.

VI. Human Capital

The Company continues to maintain cordial and peaceful industrial relations facilitating smooth manufacturing activities. The programmes aiming at leadership development and upgradation with advancing technology on all fronts were conducted during the year. Our human capital strength stood at 665 including Workers, Staff and Executives as on 31st March 2026.

Cautionary Statement

Actual performance may differ from projections made, as the Companys operations are subject to various economic conditions, government regulations, natural calamities and other incidental factors over which the Company may not have any direct / indirect control.

	For and on behalf of the Board
Place : Mumbai
Date : May 28, 2026	(Anand S. Kabra)
	Chairman & Managing Director
	(DIN: 00016010)