KRN Heat Exchanger and Refrigeration Ltd Management Discussions

ECONOMIC OVERVIEW

Global Economy: FY 2025-26

Global growth is projected at 3.1% in CY 2026 and 3.2% in CY 2027, moderating from the pace of approximately 3.4% recorded during CY 2024-25, and is expected to settle close to this rate over the medium term, below the historical average of 3.7% observed during CY 2000-19. The CY 2026 forecast has been revised downward by 0.2 percentage points relative to the January 2026 WEO Update, while the CY 2027 forecast remains unchanged. Global headline inflation is expected to rise to 4.4% in CY 2026 before easing to 3.7% in CY 2027, reflecting upward revisions for both years.

The ongoing conflict between Israel/the United States and Iran, which commenced in February 2026, has emerged as a significant global supply and confidence shock. The International Energy Agency has characterised the resulting disruption to flows through the Strait of Hormuz as the largest oil supply disruption on record, with consequent effects spreading across refined fuels and liquefied natural gas. Periodic airspace closures, elevated freight and insurance costs, and "stop-go" operating conditions have weighed on global trade, services activity, and investment sentiment. Fuel-importing economies across Asia-Pacific, including India, Japan, South Korea and parts of Southeast Asia, have faced power-conservation measures and elevated input costs, while several Asia-Europe shipments have been rerouted via the Cape of Good Hope, extending lead times by 10-14 days.

Growth in advanced economies is projected at 1.8% in CY 2026 and 1.7% in CY 2027, with the overall impact of the conflict remaining relatively contained at approximately 0.2 percentage points. Growth in emerging market and developing economies is projected to moderate to 3.9% in CY 2026 before recovering to 4.2% in CY 2027, with the Middle East and Central Asia region experiencing the sharpest slowdown, from 3.6% in CY 2025 to 1.9% in CY 2026, before a recovery to 4.6% in CY 2027.

Source: IMF World Economic Outlook, April 2026 Update.

Indian Economy: Resilience Amid Global Headwinds

India continues to be one of the fastest-growing major economies globally. Indias growth outlook for CY 2025 has been revised upward by 1.0 percentage point to 7.6%, supported by stronger-than-expected performance through the year, while the CY 2026 and CY 2027 projections stand at 6.5% each, aided by the carryover effect of strong 2025 performance and a reduction in additional U.S. tariffs on Indian goods from 50% to 10%, which more than offsets the adverse impact of the Middle East conflict.

Indias Real GDP for FY 2025-26 is estimated at ?322.58 lakh Crore, compared to ?299.89 lakh Crore in FY 2024-25, representing growth of 7.6%, higher than the 7.1% recorded in the previous year. Real Gross Value Added (GVA) for FY 2025-26 is estimated at ?294.40 lakh Crore, reflecting growth of 7.7% compared to 7.3% in FY 2024-25. The services sector remained the principal growth driver, expanding by 9.0% and contributing 52.6% to GVA, while the industrial sector grew by 7.7%, with its contribution to GVA rising marginally to 29.7%.

The Union Budget 2026-27 has reinforced the governments infrastructure focus through a record capital expenditure outlay of ?12.2 lakh Crore, together with the newly introduced Infrastructure Risk Guarantee Fund intended to crowd in private capital. Additional structural developments during the year, including the conclusion of the India-EU Free Trade Agreement negotiations, offering near-universal market access for 99.5% of Indias exports by value, and the India- Oman Comprehensive Economic Partnership Agreement, are expected to further strengthen Indias trade competitiveness and investment climate over the medium term.

The Wholesale Price Index (WPI) inflation stood at 3.88% (provisional) in March 2026, while Consumer Price Index (CPI) inflation, under the revised base year 2024 series, stood at 3.40% for the same month. The Reserve Bank of Indias Monetary Policy Committee has cumulatively reduced the repo rate by 125 basis points since February 2025, with the rate currently at 5.25%, supporting the growth- inflation balance.

Source: MOSPI National Account Statistics; IMF World Economic Outlook, April 2026; Union Budget 2026-27; CMIE Economic Outlook.

INDUSTRY OVERVIEW

Heat Exchanger Industry

Heat exchangers are critical thermal management devices that transfer thermal energy between two fluids without allowing them to mix, and find application across a broad spectrum of industrial and commercial processes, including chemical processing, oil & gas, power generation, HVAC systems, food & beverage processing, pharmaceuticals, data centres, and transportation. The global Heating, Ventilation, Air Conditioning and Refrigeration (HVAC&R) ecosystem, within which heat exchangers form a critical component, continues to see robust demand driven by technological advancement, energy-efficiency mandates, and supportive regulatory frameworks worldwide.

The global heat exchanger market expanded from USD 14.5 billion in CY 2021 to USD 19.7 billion in CY 2025, reflecting a CAGR of approximately 8.0%, underpinned by rising demand for efficient thermal management solutions across power generation, oil & gas, chemicals, HVAC, and emerging segments such as renewable energy and data centres. Regionally, the market remains fairly balanced, with the Americas holding the largest share at approximately 30.0%, followed by Europe at 29.0% and Asia-Pacific (APAC) at 27.0%, while the Middle East and Africa account for the remaining 14.0%.

Indian Heat Exchanger Industry

The Indian heat exchanger market has demonstrated robust growth, expanding from approximately USD 579.6 million in FY 2021 to an estimated USD 952.7 million in FY 2025-26, reflecting a CAGR of approximately 10.4%, outpacing the global growth rate and underscoring Indias emergence as a key high-growth market for heat exchangers. This growth has been driven by increasing industrial activity, capacity expansion across power, oil & gas, chemicals, data centres, and HVAC segments, along with rising investments in infrastructure and energy- efficiency initiatives.

By product type, Shell & Tube Heat Exchangers continue to dominate the Indian market with an approximate 53.55% share, owing to their applicability across oil & gas, power generation, chemicals, and heavy process industries. Finned Tube / Air-Cooled Heat Exchangers represent the second-largest category at approximately 21.30%, supported by increasing adoption in water-constrained applications, followed by Plate Heat Exchangers at approximately 19.60% and Spiral Tube Heat Exchangers, a niche segment, at approximately 5.55%.

By end-use industry, the Chemical sector remains the largest contributor at approximately 24.0%, followed by Oil & Gas at 22.0%, Power & Energy at 17.1%, HVAC at 16.3%, Food & Beverages at 7.7%, Paper & Pulp at 7.3%, and other sectors including cement and marine at 5.6%.

Key Growth Drivers

Rapid Growth in HVAC Demand: The Indian HVAC market is projected to expand from approximately USD 17.1 billion in FY 2025 to USD 32.6 billion by FY 2030, reflecting a CAGR of approximately 13.7%, driven by rising cooling demand, projected by the India Cooling Action Plan to grow nearly eightfold by 2037-38, and rising penetration of room air conditioners, estimated at approximately 110 million units in FY 2025 with an additional 130-150 million units expected by FY 2035

Infrastructure Expansion: Large-scale infrastructure development under the National Industrial Corridor Development Programme (NICDP), the PM GatiShakti National Master Plan, and the Union Budget 2026-27s Integrated East Coast Industrial Corridor is expected to generate sustained demand for HVAC systems and thermal management equipment across new industrial townships, logistics hubs and manufacturing clusters

Pharmaceutical Sector Growth: Indias pharmaceutical turnover is projected to reach ?8 lakh Crore (USD 130 billion) by FY 2030, with continued expansion in cleanroom manufacturing and R&D infrastructure expected to drive demand for precision HVAC and thermal control systems

Data Centre and Semiconductor Expansion: The number of data centres in India increased from 130 in CY 2021 to 271 in CY 2025, with cumulative investments of approximately USD 95 billion during CY 2019-25, expected to exceed USD 100 billion by CY 2027. Cooling infrastructure constitutes 15-25% of total data centre capital expenditure, creating substantial demand for high-efficiency heat exchangers, particularly as the sector transitions toward liquid and hybrid cooling technologies

Cold Chain and Warehousing: Indias total warehousing stock reached approximately 610.0 million sq. ft. in CY 2025 and is projected to reach 850 million sq. ft. by CY 2030, while cold storage capacity utilisation remains constrained relative to demand, indicating substantial headroom for temperature- controlled infrastructure investment

Transportation and Electrification: The transition toward electric public transport, including the PM e-Bus Sewa Schemes sanction of 10,000 air-conditioned electric buses across 116 cities, is expected to sustain demand for HVAC systems within the transportation segment

Renewable Energy Integration: Indias installed renewable energy capacity expanded from 95.8 GW in FY 2021 to approximately 275.4 GW as of February 2026, creating incremental demand for heat exchangers in applications such as concentrated solar power, hydrogen production, and battery energy storage cooling systems

Trade Scenario

Indias trade position in heat exchange equipment has transitioned from a net importer to a net exporter over the past decade. Exports of heat exchange equipment rose from USD 196.8 million in FY 2021 to a peak of USD 327.4 million in FY 2025, before moderating to USD 260.0 million during FY 2025-26 (till December 2025), while imports rose from USD 172.6 million to USD 263.4 million over the same period, standing at USD 246.5 million during FY 2025-26 (till December 2025). The UAE remains Indias largest export destination for heat exchange equipment at approximately 33.2% of total exports, followed by the USA at 12.7%, while China continues to be the dominant import source at approximately 42.9%, reflecting continued reliance on cost- competitive manufacturing capacity for certain inputs.

Source: Directorate General of Foreign Trade; Ministry of New and Renewable Energy; NITI Aayog; D&B Research and Estimates.

Growth Outlook

The global heat exchanger market is projected to grow from approximately USD 21.4 billion in CY 2026E to USD 29.6 billion by CY 2030, reflecting a CAGR of approximately 8.5%, with Asia-Pacific expected to emerge as the leading region by CY 2030 at approximately 30.0% share, overtaking the Americas (29.0%) and Europe (27.3%).

The Indian heat exchanger market is projected to grow at a relatively higher CAGR of approximately 11.8%, from an estimated USD 952.7 million in FY 2025-26 to USD 1,488.5 million by FY 2030, reflecting Indias position as a high-growth market supported by industrialisation, policy-led domestic manufacturing initiatives, and rising adoption of energy-efficient technologies.

Within this, the finned tube heat exchanger segment, a core focus area for the Company, is projected to grow at a CAGR of approximately 12.9%, from USD 201.2 million in FY 2025-26 to USD 326.5 million by FY 2030, outpacing the broader market and reflecting increasing preference for air-cooled and compact thermal solutions.

COMPANY OVERVIEW

Operations

KRN Heat Exchanger and Refrigeration Limited ("KRN" or the "Company"), established in 2017 and headquartered in Rajasthan, is a prominent Indian manufacturer of fin & tube-type heat exchangers, with a growing and diversified presence across the HVAC&R value chain. The Company is engaged in the design, manufacturing and supply of precision-engineered evaporator and condenser coils, headers and tubings, sheet metal parts, refrigerator components, bar and plate heat exchangers, and bus air-

conditioning systems for Original Equipment Manufacturers ("OEMs") across domestic and international markets.

The Company operates three manufacturing facilities in Neemrana, Rajasthan, one dedicated to heating & refrigeration products and two dedicated to HVAC products, supported by integrated production processes, automated manufacturing systems, dedicated R&D infrastructure and inhouse testing facilities.

Particulars (Rs. in Lakhs)	FY 2025-26	FY 2024-25	FY 2023-24
Total Income	60,980.59	44,170.64	31,374.00
Revenue from Operations	60,005.77	42,984.93	30,828.00
Growth in Revenue (YoY)	39.60%	39.43%	24.57%
EBITDA	11,287.32	7,050.91	5,845.00
EBITDA Margin	18.81%	16.40%	18.96%
Growth in EBITDA (YoY)	60.08%	20.63%	14.33%
Profit After Tax	7,646.74	5,287.54	3,939.00
PAT Margin	12.74%	12.30%	12.78%
Growth in PAT (YoY)	44.62%	34.24%	17.42%

The Company serves a diversified base of over 200 customers globally, with an established export presence across international markets including the North America, Europe and UAE. Key customers served by the Company include Daikin Air Conditioning India Private Limited, Schneider Electric IT Business India Private Limited, Carrier Air Conditioning & Refrigeration Limited, and Trosten Industries Company LLC. The Company continues to focus on expanding its product portfolio and distribution footprint across newer HVAC&R applications, supported by its integrated manufacturing capabilities across raw materials, critical components and full-system manufacturing.

Financial Highlights

The financial performance of the Company for the year under review, together with the corresponding figures for the preceding two fiscal years, is summarised below:

Note: Key financial ratios, including EPS, current ratio, debt- equity ratio, debtors turnover ratio and return on net worth, along with explanations for significant changes therein, are set out under Key Financial Ratios and Return on Net Worth below, and are also disclosed in the audited standalone and consolidated financial statements forming part of this Annual Report.

The Companys revenue from operations grew at a CAGR of approximately 39.6% between FY 2023-24 and FY 2025-26, supported by expansion in product offerings, deepening customer relationships, and increased participation in the HVAC&R value chain. EBITDA and Profit After Tax similarly recorded strong growth over the period, reflecting improving operating leverage alongside the Companys expanding scale of operations. Growth in the Companys revenue during the year continued to significantly outpace both the global heat exchanger market CAGR of approximately 8.0% and the Indian heat exchanger market CAGR of approximately 10.4%, reflecting market share gains and the Companys ability to capitalise on the sectors underlying secular growth drivers.

Key Financial Ratios

Pursuant to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Companys key financial ratios (on a consolidated basis) for FY 2025-26, as compared to FY 2024-25, are set out below:

Ratio	FY 2025-26	FY 2024-25	% Change
Debtors Turnover Ratio (Times)	3.43	4.62	(25.8)%
Inventory Turnover Ratio (Times)	2.20	4.49	(51.0)%
Interest Coverage Ratio (Times)	15.88	19.31	(17.8)%
Current Ratio (Times)	1.64	4.52	(63.7)%
Debt-Equity Ratio (Times)	0.33	0.07	371.4%
Operating Profit Margin (EBITDA Margin) (%)	18.81%	16.40%	14.7%
Net Profit Margin (%)	12.74%	12.30%	3.6%

Note: The above ratios ore computed on a consolidated basis. Debtors Turnover Ratio and Inventory Turnover Ratio are computed as Revenue from Operations divided by closing Trade Receivables and closing Inventories, respectively.

In terms of the above, the following ratios recorded a change of 25% or more as compared to the immediately preceding financial year, together with explanations therefor:

Debtors Turnover Ratio declined by approximately 25.8%, from 4.62 times in FY 2024-25 to 3.43 times in FY 202526, as trade receivables grew at a faster pace than revenue on account of higher billing to large OEM, data-centre and export customers acquired during the year, several of whom operate on longer, negotiated credit cycles; the underlying receivables quality remains sound and is not indicative of any deterioration in collections.

Current Ratio declined by approximately 63.7%, from 4.52 times in FY 2024-25 to 1.64 times in FY 2025-26. The elevated FY 2024-25 ratio reflected the temporary build-up of cash and liquid balances following receipt of IPO proceeds; during FY 2025-26, these proceeds were substantially deployed towards capital expenditure for the new manufacturing facility and towards funding incremental working capital (inventory and receivables) commensurate with the Companys revenue growth, resulting in a corresponding increase in current borrowings and normalisation of the ratio.

Inventory Turnover Ratio declined by approximately 51.0%, from 4.49 times in FY 2024-25 to 2.20 times in FY 2025-26, primarily due to a deliberate build-up of raw material and finished goods inventory to support the ramp-up of the new KRN HVAC Products facility (commissioned in May 2025) and the Companys ongoing strategy of maintaining an inventory buffer of approximately 2.5 months to mitigate volatility in copper and aluminium (LME-linked) prices.

Debt-Equity Ratio increased from 0.07 times in FY 2024-25 to 0.33 times in FY 2025-26, an increase of approximately 371.4%, on account of higher utilisation of working capital borrowings to fund the increased inventory and receivables associated with the Companys revenue growth and the ramp-up of the new facility. The FY 2024-25 ratio was unusually low following the equity infusion from the Companys IPO; the Companys leverage nonetheless remains conservative on an absolute basis.

Return on Net Worth

The Companys Return on Net Worth (Return on Equity) on a consolidated basis increased from 10.60% in FY 202425 to 13.32% in FY 2025-26, an increase of approximately 25.7%. This improvement was driven by a 44.62% growth in consolidated Profit After Tax to ?76.47 Crore in FY 2025-26, as the equity capital raised through the Companys IPO in FY 2024-25 began to be more fully deployed towards the new KRN HVAC Products facility and incremental working capital during the year, thereby improving capital efficiency. The comparatively lower FY 2024-25 ratio reflected the dilutive impact of the enlarged net worth base following the IPO, ahead of full deployment of the proceeds.

Quality Assurance

The Company continues to place strong emphasis on precision engineering, product quality and compliance across its manufacturing operations. Its manufacturing facilities are supported by in-house quality and reliability testing

infrastructure, and the Company holds certifications and product approvals. The Companys multi-level quality control processes, spanning raw material procurement through to final delivery, together with advanced nano and powder coatings applied to enhance corrosion resistance and product longevity, continue to underpin its brand reputation among OEM customers.

Marketing Approach

KRN continues to follow a relationship-driven, customercentric marketing approach, supported by a dedicated team of experienced professionals with presence in both domestic and international markets. The Companys strategy continues to emphasise early-stage engagement with customers, multilevel client contact, timely delivery, and continuous expansion of its product offering into adjacent applications, supported by an effective feedback mechanism to enhance customer satisfaction and retention.

btrengtns

• Integrated thermal and HVAC&R platform with a broad-based portfolio across 9 product categories serving 19 end-use application categories, spanning HVAC, refrigeration, data centres, automotive, railways, industrial cooling and process applications

• Diversified, marquee customer base of over 200 customers globally, including Daikin, Schneider Electric, Carrier, Voltas, Blue Star, Knorr-Bremse and Trosten, reducing dependence on any single customer relationship

• Scaled and expanding manufacturing footprint, with three facilities at Neemrana, Rajasthan supported by integrated production, testing and quality-control infrastructure

• Established export franchise across 19 countries, including the North America, Europe and UAE, with exports contributing an increasing share of consolidated revenue

• Quality and certification moat, with 10 or more certifications and product approvals, supported by stringent in-house testing capability

• Dedicated technology and R&D capability through the Thermotech Research Laboratory, supporting proprietary product engineering and customised solutions for customers

• Strong and improving financial profile, with

FY 2025-26 consolidated EBITDA margin of 18.81% and revenue growth significantly outpacing both the global and Indian heat exchanger market growth rates

• Raw-material-intensive cost structure, with copper, aluminium and steel together constituting a substantial majority of the bill of materials, exposing margins to commodity price cycles despite inventory buffers and quarterly price passthrough arrangements

• A meaningful portion of near-term growth is contingent on the progressive utilisation of newly commissioned capacity at the Companys HVAC Products facility, which remains in the early stages of its utilisation ramp-up

• Sustained growth in demand for HVAC&R solutions across residential, commercial, industrial

and transportation applications, supported by rising urbanisation, cooling demand and infrastructure investment

• Expansion in export markets, supported by Indias improving cost competitiveness, the transition of the domestic heat exchange equipment trade to a net-exporter position, and free trade agreements including the India-EU FTA and India-Oman CEPA

• Continued government support through PLI schemes, the National Capital Goods Policy, and infrastructure-led capital expenditure of ?12.2 lakh Crore under the Union Budget 2026-27

• Capacity expansion and diversification into new product lines, including heat exchangers, printed circuit heat exchangers, and modular thermal management systems, aligned with evolving industry technology trends

• Rising demand from emerging high-growth sectors including data centres, semiconductor manufacturing, renewable energy, and electrified public transportation

• Increased focus on ESG, energy efficiency, and waste heat recovery applications across industrial decarbonisation initiatives

• Volatility in key raw material prices, particularly copper, which has exhibited a sharp upward trajectory in FY 2025-26 alongside stainless steel and aluminium, impacting manufacturing costs and margin visibility

• Dependence on imported high-grade alloys and critical minerals, including nickel, cobalt, graphite and rare earth elements, the processing of which remains highly concentrated in China (accounting for over 90% of global rare earth processing capacity), exposing the industry to supply chain and geopolitical risks

• Geopolitical instability, including the ongoing Middle East conflict, which continues to disrupt global shipping routes, elevate freight and insurance costs, and create broader input cost and currency volatility

• Intense competitive pressures from established domestic and international players operating in the Indian HVAC&R market

RISKS AND MITIGATION

The Company continues to operate a structured risk management framework aimed at identifying, assessing and mitigating risks that could impact its business operations, financial performance and strategic growth objectives. This framework operates under the Companys Board-approved Risk Management Policy, formulated in accordance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, with oversight provided by the Risk Management Committee and periodic review by the Board of Directors. The key risks identified by the Company and its approach to mitigating each are set out below.

Risk	Impact	Mitigation
Raw Material Price Volatility	Heat exchangers are manufactured using metals such as copper, stainless steel and aluminium, whose prices remain highly volatile, driven by global commodity cycles, nickel price movements, and energy costs; copper prices in particular have risen sharply during FY 2025-26.	The Company continues to diversify its supplier base, maintain strategic inventory buffers, and evaluate forward contracts and alternate sourcing strategies to mitigate the impact of raw material price fluctuations also considering Quarterly settlement and pass on to customer for metal pricing
Dependence on Imported Critical Minerals	Manufacturing of high-performance alloys used in heat exchangers depends on critical minerals such as nickel, cobalt and rare earth elements, whose global processing capacity remains highly concentrated, with China accounting for over 90% of rare earth processing.	The Company continues to monitor its supply chain closely and evaluate diversification of sourcing markets to reduce dependence on any single geography.
Foreign Exchange Risk	Import of raw materials and export revenue expose the Company to currency fluctuations impacting costs and profitability, particularly amid elevated global volatility linked to the ongoing Middle East conflict.	The Company employs hedging strategies such as forward exchange contracts and periodically reviews procurement and pricing strategies to minimise the impact of currency variations.
Customer Concentration Risk	A degree of dependence on a limited number of large OEM customers poses a risk of revenue fluctuation due to order cancellations, delays or contract non-renewal.	The Company continues to diversify its customer base across domestic and international markets and to deepen long-term relationships through continuous improvement in product and service quality.
Geopolitical and Supply Chain Risk	The ongoing Middle East conflict continues to disrupt global shipping routes, elevate freight and insurance costs, and create broader input cost volatility affecting the industry.	The Company continues to monitor global supply chain developments closely and maintains flexibility in sourcing and logistics arrangements to minimise disruption.
Capacity Utilisation and Project Execution Risk	A meaningful part of the Companys growth outlook is linked to the progressive utilisation of newly commissioned capacity at its HVAC Products facility; slower-than-anticipated customer qualification, order conversion or execution could affect the pace of revenue growth.	The Company follows a structured, phased utilisation roadmap supported by active customer qualification processes, a robust quality management system, and continued new-customer additions across both domestic and export markets to drive progressive capacity utilisation.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has established a robust internal control framework designed to ensure the integrity and reliability of its financial reporting, safeguard its assets, and promote adherence to statutory, regulatory and internal procedural requirements, commensurate with the size, complexity and scale of its operations. The Board of Directors remains responsible for the design, implementation and continued adequacy of internal controls, with the Audit Committee, together with the internal audit function, continuing to provide independent oversight of internal audit procedures and compliance across business functions.

CORPORATE SOCIAL RESPONSIBILITY

The Company continues to undertake community-focused initiatives, particularly in the areas of education and healthcare, in keeping with its commitment to responsible corporate citizenship within its operational geography. Details of the Companys CSR initiatives and expenditure for the year are set out in the Annual Report on CSR Activities forming part of this Annual Report.

HUMAN RESOURCES AND INDUSTRIAL RELATIONS

The KRN Group employee strength increased to 1,500+, primarily on account of the expansion of its production facilities, including the ramp-up of the new KRN HVAC

Products facility commissioned in May 2025. The final consolidated headcount figure for the year is currently being compiled and will be reported in due course.

The Company continues to place strong emphasis on continuous learning and professional development, including through its internal Brazing school established to enhance staff skills, supported by regular training programmes for both workers and staff. The Companys human resource practices continue to be governed by its Nomination and Remuneration Policy and its Policy on Sexual Harassment of Women at Workplace, supported by an Internal Complaints Committee, reflecting its broader Code of Ethics and commitment to a safe and healthy working environment.

FUTURE OUTLOOK

• Robust demand drivers ahead, supported by the projected growth of the Indian heat exchanger market to USD 1,488.5 million by FY 2030 (CAGR of approximately 11.8%) and the Indian HVAC market to USD 32.6 billion by FY 2030 (CAGR of approximately 13.7%)

• Continued scaling of manufacturing capacities to meet rising demand across HVAC, refrigeration, data centres, automotive, railways and industrial cooling applications

• Expanding global footprint, building on the Companys established export presence across the North America, Europe and UAE and Indias continued transition toward a net-exporter position

• Continued product innovation and diversification into emerging technologies, including microchannel and hybrid heat exchanger systems, aligned with evolving customer and regulatory requirements

• Deepening relationships with existing OEM customers while pursuing new customer acquisition across both domestic and international HVAC&R markets

Source: Primary Research, D&B Estimates *=Projected, *E=Estimated

CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis report detailing the Companys objectives, projections, estimates, expectations or predictions may be "forwardlooking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include global and Indian demand-supply conditions, raw material prices, finished goods prices, cyclical demand and pricing in the Companys products and their principal markets, changes in Government regulations, tax regimes, economic developments within India and the countries with which the Company conducts business, geopolitical developments including the ongoing Middle East conflict, and other factors such as litigation and/or labour negotiations.