Kalana Ispat Ltd Management Discussions

In compliance of Regulation 34(3) and 54(f) read with Schedule V of Securities Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations, 2015, please find Management Discussion and Analysis Report forming part of Annual Report.

1. Overview of the Business

Our Company is primarily engaged in the manufacturing of Mild Steel (M.S.) Billets and Alloy Steel Billets of various grades. Our production facility is certified under international quality management standards, including ISO 2830:2012.

We operate under two key business segments:

Sale of Products: This includes the sale of billets manufactured in-house, as well as traded goods. Our core manufactured products — M.S. Billets and Alloy Steel Billets—are sold directly to customers on an order basis. Additionally, we engage in trading of goods such as iron scrap, iron ore, and ingots to complement our product offerings.

Sale of Services (Job Work): Leveraging available spare capacity, we offer casting services for M.S. and Alloy Steel Billets on a job work basis. In this segment, clients supply the raw materials, and we provide casting services, charging a service fee for the same.

2. Opportunities and Strengths

A. Experienced Leadership and Strong Management Expertise

Kalana Ispat Limited continues to derive strategic advantage from the extensive industry knowledge and visionary leadership of its Promoter and Managing Director, Mr. Varghese Joseph Pottakerry. With significant experience in the steel manufacturing sector, he has been instrumental in driving the Companys operational growth, business expansion and long-term strategic planning. Under his leadership, the Company has strengthened its manufacturing capabilities and enhanced its market position in the production of M.S. Billets, Alloy Steel Billets and Ingots. Supported by a competent and experienced management team possessing technical, operational and commercial expertise, the Company remains focused on achieving sustainable growth and operational efficiency.

B. Strong Market Presence and Long-Term Customer Relationships

Over the years, Kalana Ispat Limited has established a credible market presence and earned the confidence of its customers through consistent quality standards, reliable supply and timely execution of orders. The Companys customer-centric approach and commitment to maintaining high operational standards have enabled it to build enduring business relationships with customers across diverse industries. The trust and goodwill developed over time continue to contribute towards repeat business opportunities, strengthening the Companys position in the competitive steel manufacturing industry.

C. Diversified Product Portfolio and Operational Capability

The Company offers a diversified portfolio of steel products catering to the varied requirements of customers across multiple sectors, including infrastructure, construction and engineering industries. Our primary products comprise Mild Steel (MS) Billets and Ingots, which serve as essential raw materials for rolling mills and other downstream manufacturing applications. These products are manufactured using quality raw materials such as MS Scrap, Sponge Iron, Ferro Alloys and other additives through a controlled melting and casting process to ensure product consistency and reliability.

Further, the Company possesses the capability to manufacture Alloy Steel Billets on a customized order basis to meet specific customer requirements. This flexibility in production and product customization enhances the Companys ability to cater to evolving market demands and strengthens its competitive advantage within the industry.

D. Focus on Quality Standards and Operational Safety

Kalana Ispat Limited remains committed to maintaining high standards of quality assurance and operational safety across all stages of its manufacturing process. The Company follows stringent quality control mechanisms and standardized operating procedures to ensure that its products conform to applicable industry specifications and customer requirements. Regular testing and inspection processes are undertaken to maintain consistency in product quality and performance.

The Company also places significant emphasis on workplace safety, process efficiency and environmental responsibility. Continuous monitoring of manufacturing operations and adoption of improved operational practices enable the Company to enhance product reliability, operational effectiveness and customer satisfaction.

3. Competition

The steel manufacturing industry continues to remain highly competitive, with the presence of numerous organized and unorganized players operating across regional and national markets. The industry is influenced by factors such as raw material availability, pricing pressures, technological advancements, product quality and customer service standards. Several competitors possess larger financial resources, wider distribution networks and diversified product portfolios.

Despite the competitive environment, Kalana Ispat Limited continues to focus on maintaining consistent product quality, operational efficiency and customer satisfaction. The Companys emphasis on reliability, timely delivery and competitive pricing supports its ability to sustain and strengthen its market position amidst evolving industry dynamics.

4. Prospects and Outlook

The Company remains optimistic about its future growth prospects considering the increasing demand from infrastructure, construction and industrial sectors. The management believes that the Company is well-positioned to capitalize on emerging opportunities through expansion of operational capabilities, enhancement of production efficiency and strengthening of customer relationships.

Further, the ongoing development and establishment of the proposed rolling mill project is expected to support the Companys long-term growth strategy and improve operational integration. The management expects stable business performance and anticipates increased customer engagement and order flow in the coming years, which may contribute positively towards the Companys revenue and profitability.

5. Risks and Concerns

Like any manufacturing business, the Company is exposed to certain business risks including fluctuations in raw material prices, changes in market demand, competitive pressures, regulatory developments and operational risks. In order to mitigate such risks, the Company continuously reviews its business strategies, operational processes and internal control systems.

The management has implemented appropriate preventive and risk management measures to address potential challenges and ensure continuity of operations. The Company also focuses on efficient resource utilization, cost optimization and maintaining quality standards to minimize adverse business impacts and support sustainable growth.

3. Discussion on Financial Performance with respect to Operational Performance

The details of the financial performance of your Company are reflected in the Balance Sheet, Profit & Loss Account and other Financial Statements, appearing separately. Highlights are provided below:

(Rs.in lakhs)

Particulars	Standalone
	2026
Revenue from Operations	5184.04
Other Income	105.87
Total Income	5289.91
Profit/(Loss) Before Tax	136.40

The financial performance of your Company has been further explained in the Directors Report of your Company for the year 2025-26, appearing separately.

7. Financial Ratios

Particulars	FY 2025-26
i. Current Ratio	3.38
ii. Inventory Turnover ratio (days)	13.70
iii. Debt Service Coverage Ratio	17.97
iv. Return on Equity Ratio(%)	2.22%
v. Debt Equity Ratio	0.05
vi. Trade Receivable Turnover Ratio	24.08
vii. Trade Payable Turnover Ratio	24.82
ix. Net Capital Turnover Ratio	2.66
x. Net Profit Ratio (%)	1.87%
xi. Return on Capital Employed	3.43%

8. Economic Outlook

The long-term fundamentals of the Indian economy continue to be strong due to rising incomes and large investments. These growth drivers are expected to sustain over a long period of time. At the same time, there are some concerns due to uncertain global economic environment and slow recovery in developed markets.

9. Human Resources

The Company keeps developing its organizational structure consistently over time efforts are made to follow excellent Human Resource practices. Adequate efforts of the staff and management personnel are directed on imparting continuous training to improve the management practices. The objective of your company is to create a workplace where every person can achieve his or her potential. The employees are encouraged to put in their best. Lots of hard work is put in to ensure that new and innovative ideas are given due consideration to achieve the short and long term objectives of your company.

The employees are satisfied and having good relationship with management.

10. Cautionary Statement

Certain statements in the Management Discussion and Analysis describing your Companys views about the industry, expectations/predictions, objectives etc. may be forward looking within the meaning of applicable laws and regulations. Actual results may differ from those expressed or implied in these statements. Your Companys operations may, inter-alia, be affected by the supply and demand situations, input prices and availability, changes in Government regulations, tax laws, government or court decisions and other factors such as industry relations and economic developments etc. Investors should bear this in mind when considering the above statements

For Kalana Ispat Limited
Sd/-	Sd/-
Varghese Joseph Pottakerry	Aftabhusen S Khandwawala
Managing Director	Director
DIN: 02771578	DIN: 02771726
Date: 14.05.2026
Place: Ahmedabad