Kalyani Cast-Tech Ltd Management Discussions

• INDUSTRY OVERVIEW

The Indian logistics and container manufacturing industry continues to witness structural growth, supported by increasing trade activity, expansion of domestic manufacturing, infrastructure development and the Governments continued focus on improving the efficiency of Indias logistics ecosystem.

The increasing adoption of organised and multimodal transportation, together with the emphasis on reducing logistics costs and improving supply-chain efficiency, is expected to support the long-term growth of containerised freight transportation. The development of rail-based freight infrastructure, Multi-Modal Cargo Terminals and improved first- and last-mile connectivity is further expected to create opportunities for container manufacturers and integrated logistics infrastructure providers.

Indias expanding manufacturing and export ecosystem, particularly across sectors such as automotive, steel, engineering, chemicals and other industrial segments, is expected to generate demand for both standard and specialised container solutions.

The Governments focus on infrastructure development, multimodal connectivity, railway freight, domestic manufacturing and logistics efficiency is expected to provide a favourable operating environment for the industry over the medium to long term.

At the same time, the industry remains exposed to fluctuations in steel and other raw material prices, global economic conditions, geopolitical developments, freight costs and changes in trade patterns. Companies with strong manufacturing capabilities, product differentiation and operational efficiency are better positioned to navigate these challenges.

The growth and success of Kalyani Cast-Tech Limited are the result of strong and effective leadership. Our management team, with its extensive industry experience, has played a crucial role in guiding the company through key milestones and achieving significant progress.

i. Mr. Naresh Kumar, Chairman & Managing Director: Mr. Naresh Kumar, with over 35 years of experience in the manufacturing and industrial sectors, brings a wealth of expertise to our organization. His extensive background has been instrumental in guiding the company through periods of growth and transformation. Mr. Kumar?s strategic insight has been vital in shaping our long-term vision and navigating the complexities of the industry. His leadership has helped drive key initiatives, including the successful execution of our IPO and expansion strategies. His emphasis on adopting advanced technologies and optimizing processes has significantly enhanced our operational efficiency and product quality, contributing to our competitive advantage.

ii. Ms. Jayashree Kumar, Whole Time Director: As Whole-Time Director, Ms. Jayashree Kumar plays a crucial role in managing the company?s day-to-day operations. Her oversight ensures that our operations align with our strategic goals and maintain high standards of performance. Ms. Kumar is actively involved in streamlining operational processes and implementing effective management practices. Her contributions have been key to improving efficiency and achieving operational excellence. Ms. Kumar?s leadership in coordinating various departments and overseeing critical projects has been essential in achieving our business objectives and supporting our growth initiatives.

iii. Mr. Devender Kumar: As a Non-Executive Director, Mr. Devender Kumar provides essential governance and oversight. His role is crucial in ensuring that the company adheres to best practices in corporate governance and maintains high standards of integrity and accountability. His contributions help in shaping the company?s strategic direction and in making informed decisions that align with our long-term objectives. With a wealth of experience in the industry, Mr. Kumar brings valuable perspectives to the Board. His background helps in evaluating business strategies, assessing risks, and supporting the company?s growth initiatives. Mr. Kumar provides guidance on key business matters and strategic issues, helping to ensure that the company?s actions are aligned with its mission and vision.

iv. Satish Kumar, Independent Director: As an Independent Director, Mr. Satish Kumar is a qualified LL.B. professional with extensive experience in corporate, commercial and regulatory matters. His legal expertise and understanding of regulatory and compliance frameworks are valuable to the Company, particularly in matters relating to railway manufacturing standards, safety regulations, tendering processes, supply and commercial contracts, industrial laws and corporate governance requirements.

v. Mr. Sanjeev Negi, Independent Director: Mr. Sanjeev Negi, in his role as an Independent Director, ensures robust governance and accountability. His independent judgment supports the Board in maintaining transparency and aligning business practices with regulatory requirements. Mr. Negi?s expertise in the industry provides valuable input into the company?s strategic planning. His advice helps in identifying opportunities and addressing challenges, contributing to the company?s strategic success. Mr. Negi?s active participation in Board committees supports the development of sound policies and procedures. His role is integral to ensuring effective governance and strategic oversight.

Kalyani Cast-Tech Limited, during FY 2025-26, the Company continued to strengthen its manufacturing capabilities, expand its product portfolio and develop innovative container solutions for specialised applications.

The Companys product portfolio includes specialised containers designed for transportation of heavy steel products such as coils, slabs and sheets, along with stainless steel dry cargo containers, foldable containers, corrosion-resistant containers and Super High Cube containers for the automotive sector.

The Companys focus on indigenous product development and manufacturing is aligned with the broader objective of strengthening domestic manufacturing capabilities and the vision of ‘Atmanirbhar Bharat?.

During FY 2025-26, the Company delivered a healthy financial performance despite volatility in raw. material prices and an uncertain global economic environment.

Revenue from Operations increased to Rs.149.99 crore, compared with Rs.139.22 crore in the previous financial year, representing a growth of approximately 8.74%.

Profit After Tax increased to Rs.17.05 crore, representing a growth of approximately 20% over the previous financial year. Earnings Per Share increased by approximately 20% to Rs.23.75.

The Companys financial performance reflects the resilience of its business model, continued demand for its products and its focus on operational efficiency, cost management and profitable growth.

During the year under review, the Company continued to strengthen its manufacturing capabilities and broaden its product portfolio.

A key area of focus was the development of specialised containers designed for the transportation of heavy steel products, including coils, slabs and sheets. The incorporation of stainless steel in side walls, end walls and other critical sub-assemblies has enabled the Company to develop solutions aimed at enhancing durability, payload capacity and useful life.

The Company also expanded its product offerings to address specific requirements across various customer segments, including stainless steel dry cargo containers, foldable containers, corrosion- resistant containers and Super High Cube containers for the automotive sector.

These initiatives are aimed at strengthening product differentiation, expanding the Companys addressable market and creating opportunities for sustainable and value-added growth.

The Companys 144-acre campus at Shivlakha, Kutch, Gujarat, represents a significant step in its long-term expansion strategy.

Subsequent to the close of the financial year, container manufacturing operations at the facility has been commenced. The facility is expected to strengthen the Companys manufacturing capacity, enhance its geographical presence and improve its ability to serve customers across key industrial and logistics markets.

The Kutch facility also forms an important part of the Companys strategy to develop an integrated manufacturing and logistics ecosystem.

Subsequent to the financial year-end, the Company achieved a significant milestone in its integrated logistics strategy.

On August 20, 2026, the Companys first container trial train successfully reached the newly commissioned Gati Shakti Multi-Modal Cargo Terminal at Kachchh, Gujarat, operated by its subsidiary, KMT Engineering Private Limited.

The containers transported through the trial train were manufactured at the Companys Rewari facility and transported by rail to the Companys terminal at Kachchh.

The successful trial demonstrated the Companys emerging capabilities across the value chain, spanning container manufacturing, rail transportation and terminal infrastructure.

This development represents an important step towards the Companys objective of developing an integrated, efficient and sustainable rail freight ecosystem and expanding its presence across the broader logistics value chain.

The Companys medium- to long-term outlook remains positive, supported by the continued development of Indias manufacturing, infrastructure and logistics ecosystem.

The increasing focus on multimodal transportation, rail-based freight movement, development of Gati Shakti Multi-Modal Cargo Terminals and improvement in first- and last-mile connectivity is expected to create opportunities for container manufacturers and integrated logistics infrastructure providers.

The continued expansion of Indias manufacturing and industrial base is also expected to support demand for specialised transportation solutions across sectors such as steel, automotive, engineering and other industrial segments.

The Companys strategy of expanding its manufacturing footprint and developing an integrated manufacturing and logistics ecosystem is aligned with these structural trends. The commencement of manufacturing operations at the Kutch facility and the successful trial movement of the Companys first container train to its Gati Shakti Multi-Modal Cargo Terminal subsequent to the financial year-end represent important steps in this direction.

The Companys focus on specialised containers, product innovation, manufacturing efficiency and rail-linked logistics infrastructure is expected to provide opportunities for diversification and sustainable growth.

While the medium- to long-term industry outlook remains favourable, the Company remains mindful of uncertainties arising from geopolitical developments, commodity price movements, freight costs, currency fluctuations, global trade conditions and changes in customer demand. The management will continue to adopt a disciplined approach towards capacity expansion, capital allocation, operational efficiency and risk management

The increasing adoption of containerised transportation for domestic and international freight presents opportunities for manufacturers of standard and specialised containers. The Companys established manufacturing capabilities and diversified product portfolio position it to participate in this growing market.

The continued development of railway freight infrastructure and multimodal transportation provides opportunities for the container manufacturing and rail logistics ecosystem. The Companys increasing involvement in rail-linked logistics infrastructure provides a platform to participate in this evolving opportunity.

Indias expanding manufacturing base across automotive, steel, engineering and other industrial sectors is expected to generate demand for efficient and specialised freight transportation solutions.

The Companys specialised container offerings for heavy steel products and other industrial applications provide opportunities to cater to these requirements.

The increasing requirement for application-specific transportation solutions provides opportunities beyond conventional container manufacturing.

The Companys capabilities in heavy-duty, stainless steel, corrosion-resistant, foldable and Super High Cube containers enable it to address specialised requirements across multiple industries.

The development of multimodal logistics infrastructure and efforts to improve supply-chain efficiency are expected to encourage greater integration of road, rail and terminal operations. This trend is aligned with the Companys strategy of combining container manufacturing capabilities with rail-linked logistics infrastructure.

The continued emphasis on domestic manufacturing and supply-chain localisation provides opportunities for Indian manufacturers with established engineering and production capabilities.The Companys focus on indigenous product development and manufacturing positions it to participate in this evolving ecosystem.

Steel constitutes a significant raw material for container manufacturing. Fluctuations in steel and other input prices may affect manufacturing costs and operating margins, particularly where such increases cannot be passed on to customers in a timely manner.

Geopolitical tensions, changes in international trade policies, global economic conditions and disruptions in international supply chains may affect trade volumes, freight movement and demand for containerised transportation.

The container manufacturing industry is competitive and may witness increased competition from established domestic and international players as well as new entrants. Pricing, product quality, technical capabilities, delivery timelines, innovation and customer relationships remain important competitive factors.

Disruptions in global shipping routes, transportation networks and logistics infrastructure may result in increased freight costs, delivery delays and supply-chain uncertainty, which may indirectly affect customers and overall market demand.

The Companys operations are subject to applicable laws, regulations and government policies relating to manufacturing, railways, logistics, taxation, environment and infrastructure. Changes in the regulatory or policy environment may affect the Companys operations, costs or planned investments.

The Companys expansion into Kutch and its integrated logistics strategy involve capital expenditure and execution requirements. Any delay in capacity ramp-up, infrastructure development, customer onboarding or achievement of targeted capacity utilisation may affect the anticipated benefits of these investments.

Expansion in manufacturing capacity and logistics infrastructure may result in increased working capital and capital expenditure requirements. Effective working capital management and prudent deployment of financial resources will therefore remain important.

Changes in demand from particular customers or industry segments may affect order volumes. The Company intends to continue its efforts towards customer diversification and expansion into new applications and market segments.

Kalyani Cast-Tech Limited does not have multiple segments. Hence, comments on segments are not required.

The Company has established adequate internal control systems commensurate with the size, scale and complexity of its operations.

The internal control framework is designed to safeguard the Companys assets, ensure reliability of financial reporting, promote operational efficiency and ensure compliance with applicable laws and regulations.

The adequacy and effectiveness of the internal control systems are reviewed periodically by the management and the Audit Committee. Appropriate measures are undertaken wherever necessary to strengthen the control environment.

The Company believes that its existing internal control systems provide reasonable assurance regarding the orderly and efficient conduct of its business, safeguarding of assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records and timely preparation of reliable financial information.

Human resources remain an important contributor to the Companys operational performance and long-term growth.

The Company recognises that successful execution of its expansion and business strategy depends significantly on the skills, commitment and engagement of its employees.

The Company continues to focus on strengthening technical and managerial capabilities, employee development, workplace safety and a culture of innovation, accountability and continuous improvement.

The management remains committed to providing a professional and supportive working environment while maintaining appropriate standards of safety and conduct.

Statements made in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may constitute “forward-looking statements” within the meaning of applicable securities laws and regulations.

These statements are based on certain assumptions and expectations concerning future events and are subject to risks and uncertainties. Actual results may differ materially from those expressed or implied in such statements due to various factors, including changes in economic conditions, market demand, raw material prices, government policies, regulatory developments, competition, business risks, project execution and other factors beyond the Companys control.

The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.