Keltech Energies Ltd Management Discussions

The explosives industry includes manufacturing of various products like Cartridge Explosives, Bulk Emulsion Explosives, Mono Methyl Amine Nitrate (MMAN) solutions, accessories for explosives etc. The key raw material for manufacturing of explosives is Ammonium Nitrate. Whereas perlite is an aerator in potting mix which speeds up the germination and rooting, improves aeration, draining & insulation in Potting Mixes and improves the texture of clay soils. Different types of Perlite products are used in plantation, garment industry, manufacture of refractories, concrete biocks etc.

SEGMENT-WISE PERFORMANCE

1. Explosives Division : Your Companys focus was to enhance exports in various Explosive Products. This resulted in growth of Accessories. Your Companys continued presence in PSUs, has contributed to the volume of Bulk Explosives.DetailshasbeenmentionedintheBoardssReport.Thecompanyhasalreadyset-upAcessoriesProjectatits Garamsur Location.

2. Perlite Division: Perlite Filter-Aid diversification into new areas of market is underway by focusing more in to the phama sector to get higher volumes. Horticulture Mixes and Perlite have seen a considerable growth in the market. Specific products for cashew and blueberry have been developed for tissue culture industry. Your company has executed various insulation projects and catering to Indias growth in the cryogenic market.

STRENGTHS

The quality function at KEL has been at the forefront of enabling delivery and support functions in differentiation, optimization, and de-risking. While we continue to comply with international standards, such as ISO 9001,14001&45001Company,ourqualityandengineeringdepartmentshavedrivenchangeinitiativesforproductivity improvements. The Company has improved the overall infrastructure at Vishwasnagar, Garamsur and other Units

RISKS AND CONCERNS

Just like any other Industry, our Company also faces some risks like shortage in skilled labours, competition in the domestic and local markets, and stringent government regulations with respect to license and safety. Your Company is in continued efforts to evaluate and assess potentials risks and threats impacting the business.

Further, your Company has identified manufacturing risks at its various manufacturing locations and took appropriate measures to minimize the same. Also, your Company has approached eminent experts to identify market risks and take pro-active actions.

OPPORTUNITIES & CHALLENGES

Research and Development (R&D) efforts are continued to develop new products specific to customer needs by maintaining quality and consistency of the products. Safety has been the primary focus on all production activities. Your company has from time to time strengthened the processes to enhance safety. More focus is made on trainings, skill development of employees to further enhance safety. Various Government Initiatives and Investment in manufacturing and infrastructure sectors will be crucial for the increasing demand in Indias Explosive industry.

OUTLOOK

The explosives industry is expected to grow with emphasis on infrastructure growth and mining by the Govt. The growth drivers include sectors like mining, construction and infrastructure. During the Financial Year 2025-26, your Companys focus is majorly into exports. New plant commissioned in March 2026 is expected to stabilise. These steps shall ensure continued growth of your Company..

INTERNAL CONTROL SYSTEMS & ADEQUACIES

The Company has proper and adequate system of internal control to ensure that all assets are safeguarded and protected against loss from unauthorized use on disposition and transactions are authorized, recorded and reported correctly. Internal control systems are supplemented by Internal Audit Reviews, coupled with guidelines and procedures updated from time to time by the Management. Internal control systems are established to ensure that the financial and other records are reliable for preparing financial statements. Internal Audit System is engaged in evaluation of internal control systems. Internal audit findings and recommendations are reviewed by the Management and Audit Committee of the Board of Directors.

HUMAN RESOURCES

As on 31st March 2026, the employees strength (on permanent roll) of the Company was 292 Numbers.

FINANCIAL STATEMENT ANALYSIS

In accordance with SEBt (Listing Obligation and Disclosure Requirements) (Amendment) Regulations, 2015, 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.

The Company has identified the following ratios as key financial ratios:

Ratios where there has been a significant change (25% or more) from year ended March 31, 2025 to year ended March 3 1 , 2026.

I . Return on Equity Ratio : Not Applicable 2. Inventory Turnover Ratio : Not Applicable 3. Trade Receivablel Turnover Ratio: Not Applicable 4. Net Capital Turnover Ratio: Not Applicable 5. Net Profit Ratio : 29% .

6. Debt Service Coverage Ratio : + 32%

THE DETAILS OF RETURN ON NET WORTH ARE GIVEN BELOW:

% of Change: -19% .