Latteys Industries Ltd Management Discussions

Forward Looking Statement - In this, Management Discussion and Analysis of Financial

Condition and Results of Operations of the Company describing the Companys objectives, expectations or predictions may be forward looking within the meaning of applicable securities laws and regulations. Forward looking statements are based on certain assumptions and expectations of future events.

The Company cannot guarantee that, these assumptions and expectations are accurate or will be realized. The Company assumes no responsibility to publicly amend, modify or revise forward looking statements, on the basis of any subsequent developments, information or events. Actual results may differ materially from those expressed in the statement. Important factors that could influence the Companys operations include changes in government regulations, tax laws, economic developments within the country and such other factors globally.

Pursuant to Regulation 34 of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015 the Listed Companies are required to furnish Management Discussion and

Analysis Report (MDAR) as a part of Directors Report to the Shareholders.

As per Schedule V of SEBI (Listing Obligations and Disclosures Requirements), Regulations, 2015, Annual Report shall contain the below points in the Management Discussion and Analysis Report (MDAR):

1. INDUSTRY STRUCTURE AND DEVELOPMENTS

The Indian water pumping and irrigation equipment industry is undergoing a gradual transition towards energy-efficient, reliable and renewable-energy-based pumping solutions. The increasing focus on agricultural productivity, efficient utilisation of water resources, rural infrastructure and reduction of dependence on conventional sources of energy is creating new opportunities for manufacturers of efficient pumping systems.

For the Company, the most significant opportunity continues to emerge from the convergence of the water management, agricultural irrigation and renewable energy sectors . Solar-powered pumping systems provide an alternative to conventional diesel-based irrigation and are increasingly relevant in areas where grid electricity is either unavailable, unreliable or economically inefficient.

The Governments continued focus on solarisation of the agricultural sector is expected to support the long-term demand for solar pumping systems. Under the PM-KUSUM programme, standalone solar agricultural pumps and solarisation of grid-connected agricultural pumps remain important components of Indias renewable-energy and agricultural policy framework. The National PM-KUSUM Portal reported substantial implementation of solar agricultural pumps during 2026, demonstrating the continuing scale of the opportunity available in this segment.

The Company, being engaged in the manufacture and supply of pumps and motors, is strategically positioned to participate in this transition. Its existing capabilities in submersible pumps, motors and solar pumping solutions provide a platform to address the requirements of agricultural, domestic, institutional and project-based customers.

During FY 2025-26, the Company witnessed a meaningful improvement in its business performance. Revenue from operations increased by approximately 45.55% , while profit after tax increased by approximately 96.67% over the previous year. The improvement demonstrates the Companys ability to convert market opportunities into business growth while maintaining focus on profitability and operating efficiency.

Going forward, the Company intends to build on this momentum by strengthening its presence in solar water pumping, agricultural irrigation and institutional/project business, while continuing to serve its conventional pump and motor markets.

3. LATTEYS MOVING FROM PUMP MANUFACTURING TO WATER & ENERGY SOLUTIONS

The Companys business strategy is increasingly focused on providing complete and reliable pumping solutions rather than competing solely on product price.

The management believes that the future of the industry will be driven by a combination of energy efficiency, product reliability, lifecycle cost, service capability and renewable-energy integration .

Accordingly, the Company is focusing on the following areas:

Expansion of solar-compatible pumping solutions;

Improvement in energy efficiency and product performance;

Development of products suitable for agricultural and irrigation applications;

Strengthening of quality and testing processes;

Increasing participation in institutional and government projects;

Improving customer service and after-sales support;

Expanding geographical market coverage; and Improving manufacturing and supply-chain efficiency.

This approach is expected to enable the Company to build stronger customer relationships and create a more sustainable business model over the medium to long term.

3. SOLAR PUMPING A KEY GROWTH AREA

Solar pumping represents an important growth opportunity for the Company because it directly addresses two critical requirements of the agricultural sector reliable irrigation and reduction in dependence on conventional energy sources .

The Companys experience in pumps and motors provides a natural foundation for expanding its presence in solar pumping applications. The management intends to focus on products that combine pumping efficiency, durability, ease of operation and compatibility with solar power systems.

The continuing implementation of PM-KUSUM and related solarisation initiatives provides a significant addressable market for solar agricultural pumping solutions. The Companys participation in tender-based and institutional business also provides opportunities to scale its presence in this segment.

The management, however, remains mindful that government-led business may involve competitive pricing, technical qualification requirements, performance guarantees, project execution timelines and longer receivable cycles. Accordingly, the Company intends to pursue such opportunities with appropriate commercial and execution discipline.

4 . FY 2025-26 PERFORMANCE HIGHLIGHTS

FY 2025-26 was a year of significant improvement in the Companys financial performance.

Revenue from operations increased from 8,026.83 lakh in FY 2024-25 to 11,687.67 lakh in FY 2025-26 , registering growth of approximately 45.55% .

Profit before tax increased from 256.35 lakh to 476.23 lakh , representing growth of approximately 85.79% .

Profit after tax increased from 180.86 lakh to 355.73 lakh , representing growth of approximately 96.67% .

The substantially higher growth in profitability compared with revenue indicates improvement in the Companys operating performance and profitability during the year.

Finance cost also reduced from 158.85 lakh to 126.05 lakh , reflecting the Companys continued focus on financial discipline and optimisation of financing costs.

The managements focus during the year remained on increasing business volumes, improving operating efficiency, maintaining product quality, managing costs and strengthening working capital discipline.

5. GOVERNMENT AND INSTITUTIONAL BUSINESS

Government and institutional projects continue to represent an important opportunity for the Company, particularly in areas relating to agricultural irrigation, solar pumping, rural water infrastructure and renewable-energy-based applications.

The Company has experience of participating in tender-driven business and understands the importance of technical compliance, project execution, documentation, warranty obligations and timely delivery.

Going forward, the Company intends to selectively pursue opportunities where the commercial terms, project execution requirements and working-capital implications are aligned with its risk appetite.

The management believes that disciplined tender selection will be important for protecting margins and ensuring that growth in order volumes translates into sustainable profitability.

6. OPERATIONAL PRIORITIES FOR FY 2026-27

Based on the experience gained during FY 2025-26, the Companys key operational priorities for the forthcoming year include:

Market Expansion:

Expanding the Companys presence across additional geographical markets and customer segments.

Solar Pumping:

Increasing focus on solar water pumping systems and renewable-energy-linked irrigation applications.

Product Quality:

Continued emphasis on quality, reliability, testing and compliance with applicable technical standards.

Operational Efficiency:

Improving manufacturing processes, procurement efficiency, inventory management and utilisation of resources.

Working Capital:

Maintaining close monitoring of receivables, inventory and project-related cash flows.

Project Selection:

Following a disciplined approach towards government and institutional tenders, with emphasis on commercial viability and execution capability.

Customer Service:

Strengthening after-sales support and customer relationships to improve repeat business and long-term customer retention.

7. STRATEGIC OUTLOOK

The management believes that the Companys future growth will be driven by the increasing intersection of agriculture, water management and renewable energy .

Indias continuing focus on agricultural solarisation and efficient water utilisation provides a structural opportunity for companies with capabilities in pumps, motors and solar pumping systems. The Company intends to leverage this opportunity while maintaining a balanced approach towards growth, profitability and risk.

The Companys strategy will therefore be to pursue profitable growth rather than growth in volumes alone , with emphasis on product quality, operational efficiency, working-capital discipline and sustainable customer relationships.

The management remains cautiously optimistic about the Companys prospects and believes that the improved financial performance achieved during FY 2025-26 provides a strong foundation for the next phase of growth.

8. KEY RISKS SPECIFIC TO THE BUSINESS

In addition to normal industry risks, the Company recognises the following business-specific risks:

Policy and Subsidy Risk:

Solar pumping demand is influenced, among other factors, by government schemes, subsidy structures and state-level implementation policies. Changes in such policies may affect market demand or project timelines.

Tender Margin Risk:

Highly competitive tendering may place pressure on selling prices and margins. The Company therefore intends to evaluate tenders on the basis of complete project economics rather than order size alone.

Execution Risk:

Large institutional and government projects may involve stringent timelines, documentation and performance requirements. Delays in approvals, site readiness or customer-side processes may affect project execution and working capital.

Receivable Risk:

Project-based business may result in longer collection cycles. Effective receivable monitoring and cash-flow planning therefore remain important management priorities.

Product Liability and Warranty Risk:

Pumps and motors are performance-oriented products. Product quality, installation conditions, operating environment and maintenance can influence field performance. The Company continues to focus on quality control and customer support to mitigate such risks.

Raw Material Risk:

Volatility in the prices of metals, electrical components and other manufacturing inputs can affect margins. The Company continues to monitor procurement and cost structures closely.

9. MANAGEMENTS VIEW

The management believes that FY 2025-26 represents an important step forward for the Company. The strong improvement in revenue and profitability demonstrates the Companys ability to participate effectively in the growing demand for pumping solutions.

At the same time, the management remains conscious that sustainable growth requires careful management of margins, working capital, project execution and customer service.

The Companys objective for the coming years is therefore not merely to increase turnover, but to build a stronger, more efficient and more sustainable pumps and solar water-pumping business , capable of serving both conventional and emerging requirements of the Indian market.

	FOR AND ON BEHALF OF THE BOARD
PLACE: AHMEDABAD	FOR LATTEYS INDUSTRIES LIMITED
DATE: 02nd SEPTEMBER 2026	KAPOOR CHAND GARG
	MANAGING DIRECTOR
	DIN: 00434621