Lumax Auto Technologies Ltd Management Discussions

For the Financial Year Ended March 31, 2026

ECONOMIC OVERVIEW Global Economy

The global economy entered FY 2025-26 amidst a complex macroeconomic environment characterized by evolving trade dynamics, geopolitical uncertainties and elevated interest rates. While growth remained resilient across several major economies, heightened energy prices and supply chain disruptions continued to influence global economic activity. However, the outbreak of conflict in the Middle East during the second half of the year materially altered the outlook. The International Monetary Fund (IMF), in its April 2026 World Economic Outlook, projected global growth at 3.1% in CY 2026 and 3.2% in CY 2027, a moderation from the 3.4% growth recorded during CY 2025. This reflects the pressures of elevated energy prices, tighter financial conditions and weakened business sentiment; however AI-led productivity gains and resilient private consumption provide partial offsets.1

Global headline inflation, which had been on a steady decreasing path, is projected to edge up to 4.4% in CY 2026 before resuming its decline in CY 2027, driven largely by the pass-through of higher crude prices, freight costs and commodity-linked input pressures. Advanced economies have seen modest downward growth revisions, while commodity-importing emerging markets, particularly in Asia and Sub-Saharan Africa, face more pronounced adjustments. Growth in the United States is expected to moderate as residual tariff effects work through supply chains, while the Eurozone remains range-bound with growth projected in the 1.0-1.2% corridor.2

Trade dynamics remain a defining feature of the global landscape. The interim US-India trade agreement concluded earlier in CY 2026, which reduced effective tariffs to 18% from earlier proposed levels of 50%, has provided partial relief to export-oriented sectors. Progress on the India-EU Free Trade Agreement is expected to further improve market access over the medium term.3 For the automotive and auto component value chain, these developments carry meaningful implications: supply chains are being reconfigured around diversification strategies, critical raw material flows (including rare-earth magnets

and specialty electronics) remain concentrated and freight corridors around the Strait of Hormuz have become a key watch-item for cost visibility. The IMF highlights that the outlook remains highly contingent on the duration and intensity of the Middle East conflict, with downside scenarios implying materially lower global growth.

Real GDP Growth (in %)

Region	CY 2025 (Est.)	CY 2026 (Forecast)	CY 2027 (Outlook)
World	3.4%	3.1%	3.2%
United States	2.0%	2.1%	2.0%
Euro Area	1.0%	1.0-1.2%	1.2%
Emerging Markets	4.2%	3.9%	4.0%
India	7.6% (FY basis)	6.5%	6.5-6.6%

Source: IMF World Economic Outlook, April 2026; RBI Monetary Policy Statement, April 2026.

For automotive and auto component manufacturers, the read-through is two-fold. On the cost side, firmer crude oil, logistics and commodity prices exert pressure on input margins, particularly for import-linked components. On the demand side, resilient consumption in key Asian markets and the gradual easing of tariffs support export opportunities, while the accelerating shift to electrification and software- defined vehicles continues to reshape the component mix.

Indian Economy

India remained one of the fastest-growing major economies globally during FY 2025-26, with the Reserve Bank of India (RBI) maintaining real GDP growth at 7.6% for FY 2025-26, supported by robust domestic demand, strong manufacturing momentum and a resilient services sector. GDP growth reported at 8.4% in Q2 FY 2025-26 and moderated to 7.8% in Q3 FY 2025-26, reflecting sustained economic momentum despite a high base and post-festive normalization. Growth remained predominantly domestically driven, with private consumption and government capital expenditure continuing to anchor economic activity during the year. For FY 2026-27, the central bank has estimated growth at 6.9%, indicating a calibrated moderation amid evolving global uncertainties, including geopolitical risks and energy price volatility.4

The domestic macroeconomic environment has been supportive for discretionary consumption. Multiple policy and macroeconomic factors contributed to a favorable demand environment during FY 2025-26. Recent GST rationalization measures improved affordability across select categories, supporting consumption demand. Monetary policy remained balanced, with the RBI maintaining a neutral stance while ensuring adequate system liquidity, supporting credit availability across retail and industrial segments. Additionally, personal income tax adjustments announced in the Union Budget supported disposable incomes.5 Headline CPI inflation has remained within the RBIs target band of 2-6% for much of FY 2025-26, with inflation averaging close to 2.0-2.1% during the year and reaching a multiyear low in October 2025. This has allowed the monetary authority to maintain a balanced policy stance while food and fuel prices remain contained. The Governments continued thrust on infrastructure, PM GatiShakti, the Production-Linked Incentive (PLI) scheme and the finalization of the Automotive Mission Plan 2047 provide structural underpinnings for long-cycle investment.6

India Real GDP Growth (%)

Region	FY 2024-25	FY 2025-26 E	FY 2026-27 E
Real GDP Growth	7.1%	7.6%	6.9%
CPI Inflation	5.4%	2.0-2.1%	4.6%

Source: RBI Monetary Policy Statement, April 2026; MoSPI New Series with base year 2022-23.

Outlook

The Indian economy is expected to sustain its growth momentum through FY 2026-27, supported by strong domestic fundamentals. Private consumption is expected to strengthen further, supported by stable inflation, improving income visibility and a resilient labor market. Investment activity is likely to accelerate on the back of higher capacity utilization in manufacturing, a healthier corporate balance sheet and continuing public capital expenditure. Export growth, while subject to global trade realignments, remains supported by improving competitiveness and widening market access.

The principal downside risks relate to geopolitical fragmentation, prolonged elevation in crude oil prices and

currency volatility. For discretionary categories including automobiles, however, supportive policy measures, stable financing conditions and tax adjustments continue to provide a favorable demand environment which is expected to support demand conditions through FY 2026-27.

AUTOMOTIVE INDUSTRY OVERVIEW Global Automotive Industry

Global light-vehicle sales rose 3.4% in CY 2025 to 91.7 Million units, the first year to exceed the CY 2019 pre-COVID peak of 89.9 Million and S&P Global Mobility expects 2026 sales to remain near-flat at 91.8 Million units, with global production ticking down 0.4% to 92.6 Million.7

Production outlook has been revised across key regions, reflecting demand softness, geopolitical disruptions and affordability pressures. In the United States, CY 2026 and CY 2027 production are now estimated at 14.3 Million (1.5%) and 15.3 Million (2.3%), with further cuts due to conflict spillovers and weakening demand; while OEMs are initially absorbing tariff impacts8, gradual price increases are expected amid already elevated vehicle prices. In Europe, CY 2026 production has also been trimmed due to energy costs and affordability constraints, with Germany still below pre-COVID levels and France lagging, as OEMs navigate electrification mandates, rising Chinese EV competition and a consumer shift toward hybrids. In China, domestic demand remains subdued due to lower subsidies and weak sentiment, leading to downward revisions, although exports continue to provide structural support. Meanwhile, Japan and Korea have seen modest cuts, with Japanese OEMs benefiting from a weaker yen and evolving supply chain strategies, including increased localized and sourcing shifts. A key structural shift is that Chinese-origin brands now account for 26.5% of global vehicle production (24.8 Million units, +18% YoY in CY 2025) and are projected to take 27.4% in CY 2 0 2 67. More tellingly, Chinese OEMs production outside China grew from 1.1 Million units in CY 2025 to a forecast 1.6 Million in CY 2026, a 45% increase that signals the second wave of the Chinese auto export thrust: localised manufacturing in Europe, Southeast Asia, Mexico and Egypt.

Another key trend is the moderation of pure-Battery Electric Vehicle (BEV) adoption in favor of a multi-powertrain world. S&P Global Mobility now projects electrified vehicles (BEV

+ Plug-in Hybrid Electric Vehicle (PHEV) + Range-Extended Electric Vehicle (REEV) at 30% of global sales in CY 2026, with EV-Volumes pegging the BEV+PHEV share at 27.5% but the mix is shifting toward hybrids and PHEVs as bridge technologies9

China remains the global EV growth engine; North America continues to lag the adoption curve; Europe is in flux as government incentive structures are recalibrated. Battery demand is forecast to exceed 1 TWh in CY 2025 and reach 6 TWh by 2040.9 BEV sales in France grew 12.4% in CY 2025 to a 20% market share despite the overall PV market decline illustrating that the regulatory mix-shift is independent of cyclical demand.10

OEMs are caught between three forces in CY 2026: (i) tariff cost absorption pressuring margins; (ii) rising EV-related amortisation (battery, software, charging infrastructure); and (iii) competitive pressure from Chinese OEMs that are not competing in the sub-€20,000 segment, where they could, but are instead targeting higher-margin segments with aggressive value propositions. As a result: OEMs globally are recalibrating product portfolio and investment priorities to balance profitability, affordability and electrification objectives.

Software-defined vehicles (SDVs) represent a key medium- term margin lever. Recurring software/services revenue, OTA-update monetization and ADAS feature unlocks are reshaping the OEM business model.

Global Auto Component Industry

The global auto components industry, estimated at ~USD 1.8-2.0 Trillion in revenue, is in the middle of its most significant restructuring since the 1980s. Three forces converge: (i) the EV content uplift (BEVs require ~3-4x the value of power electronics, motors, battery management and thermal management vs ICE); (ii) software-and-electronics share rising to 30%+ of vehicle BoM by 2030; and (iii) the collapse of legacy ICE-only supplier economics as volumes for engines, fuel systems and exhaust components face structural decline. Tier-1 suppliers globally are bifurcating into ‘EV-ready and ‘value migrants exiting ICE-dependent product lines.

Indian Automotive Industry

The Indian auto industry posted its strongest fiscal year in seven years (since FY 19), with production of 34.71 Million units, up 12.0% YoY and robust performance across segments.1112

Segment	FY 2025-26 Volume	FY 2024-25 Volume	YoY Growth
Passenger Vehicles	55.39.115	50,61,164	+9.4%
Two-Wheelers	2.66.91.916	2,38,83,857	+11.8%
- Motorcycles	1,74,44,978	1,59,22,027	+9.6%
- Scooters	87.19.739	74,37.681	+17.2%
- Others	5,27,199	5,24,149	+0.6%
Three-Wheelers	13,00,805	10,50,020	+23.9%
Commercial Vehicles	11,70,150	10,34,947	+13.1%
Total*	3,47,01,986	3,10,29,988	+11.8%

Source: SIAM, April 2026.

* Total includes quadricycles

Passenger Vehicles: SUVs continue to take share from sedans and hatchbacks; the ‘premium-affordable segment (Rs. 10-25 Lakhs) is the fastest-growing segment; and BEV penetration in PVs reached the mid-single-digit range in FY 2025-26, with Tata Motors and Mahindra capturing the lions share. The launch of the SPMEPCI scheme in June 2025 (Scheme to Promote Manufacturing of Electric Passenger Cars) is bringing global OEMs onto the Indian production map.13

Two-Wheelers: The 11.8% headline understates the scooter renaissance 17.2% growth led by EV scooters and a return of urban commuter demand. EV penetration in 2W has crossed 8-10% on a monthly basis, the highest in any major segment. Motorcycle growth at 9.6% reflects steady premiumization. Commercial Vehicles: The 13.1% growth marks a clear cyclical recovery, supported by infrastructure-led freight demand, fleet replacement after the pre-BS-VI vehicle cohort and improving operator economics on lower diesel prices through most of 2025. Heavy CV (M&HCV) outperformed light CV, a classic mid-cycle indicator.

Vehicle exports surged 24% in FY 2025-26 to 6.65 Million units, the strongest export year on record, with passenger- vehicle exports up 17.5%, two-wheelers up 23.4%, three-

wheelers up 50.1% and CVs up 17.4%. India is now the worlds largest 2W exporter and a top-5 PV exporter by volume. The drivers: rupee depreciation tailwind, Maruti-Hyundai-Kia volume push from India as an export hub and growing acceptance of Indian-engineered products in Latin America, Africa and ASEAN. The two soft spots: (i) Mexico raised import duties and (ii) Middle East demand is at risk from the conflict. Together, these account for ~20-22% of Indias PV exports, per SIAM.14 This is a calibrated risk, not a structural one.

Indias auto growth outlook remains robust and is underpinned by rising incomes (crossing USD 3,000 per capita), increasing urbanization (36% to 43% by 2035), deeper financing penetration and premiumisation. Higher- priced vehicles are driving revenue growth, while demand remains broad-based across rural and urban markets, indicating underlying macro strength.

Indian Auto Component Industry

The Indian auto components industry is now a USD 80+ billion-revenue industry at annualized pace, reflecting strong OEM growth, an expanding vehicle parc (number of vehicles on the road) and the formalization of repair and maintenance channels. The PLI architecture is specifically designed to deepen India from ‘assembly-driven to ‘vertically integrated. The 12.5% YoY growth in component imports (driven primarily by China) is flipping the trade balance from a USD 150 Million surplus to a USD 180 Million deficit reveals the uncomfortable truth about Indias auto-components positioning: even as India exports more, it is also importing more sophisticated subsystems (rare-earth magnets, power electronics, EV-specific components) from China. ACMA leadership has explicitly flagged securing critical materials, including rare-earth magnets, as the top supply-chain priority for FY 2026-27.15 Dependence on imports of certain advanced components and critical materials, including rare earth magnets and power electronics, remains a key strategic consideration for the industry. This also presents opportunities for localisation and domestic value addition.

OPPORTUNITIES

Expanding Domestic Vehicle Demand

The expanding middle class and rapid urbanization are fuelling a surge in automobile demand. This, in turn, is propelling growth in the auto component sector. The growth of Indias middle class is leading to higher vehicle ownership, driven by rising incomes, better education, and employment

opportunities. These factors boost disposable income and encourage spending on personal transportation.

Premiumization

ASP-led growth now contributes more to industry revenue than unit-volume growth in most quarters. The component implication: precision engineering, ADAS, infotainment, premium interiors and lighting are the highest-growth subverticals, far ahead of generic body-and-chassis components.

Software, Electronics and the SDV Transition

The vehicle BoM is shifting from majority mechanical to more electronics- and software-led in the next few years. Indias strength in software, embedded systems and engineering services is structurally aligned with this shift. The global engineering-R&D services opportunity for Indian autoservices firms is expected to be in the USD 50-60 Billion range by CY 2028.

Emergence as a Global Sourcing Hub

India is being considered a potential global automotive supply chain alternative under global diversification strategy. This strategy encourages companies to diversify manufacturing beyond China. Additionally, Indias automotive industry is gaining importance in global supply chains due to strategic localization, economic growth, endurance, and targeted investments in infrastructure and technology.

Technological Advancements

India is enhancing its advanced manufacturing infrastructure through increased foreign direct investment and a focus on localizing advanced components to reduce import dependency. The country is also embracing advanced technologies like robotics, automation, and Industry 4.0 to improve productivity and meet international quality standards, positioning itself as a competitive player.

Aftermarket - The Under-Appreciated Structural Compounder

With the strong increase in vehicle parc, the aftermarket is the single most predictable growth pool in the industry for the next decade, with relatively higher margin profile. The formalization tailwind such as growing organized channels compounds the secular volume growth.

THREATS

Supply Chain Disruptions

The sector contends with geopolitical and economic disruptions, prompting the need to localize critical

components to reduce import dependency, especially from China. Logistics challenges are exacerbated by geopolitical tensions, complicating and raising input and transportation costs. As a result, the sector remains vulnerable to global supply chain disruptions and currency fluctuations due to significant reliance on imported advanced components.

Transition to EVs

The shift to EVs presents both challenges and opportunities for the auto component industry. While EV adoption is accelerating, it poses significant threats to traditional auto component manufacturers due to the fundamental change in vehicle architecture. The demand for ICE-related components, such as engines, transmissions, and fuel systems is expected to decline, impacting businesses that rely heavily on these parts. Additionally, developing skills for EV production remains a challenge, as the existing workforce may not be adequately trained for battery technology, power electronics, and electric drivetrains. Moreover, the growth of the EV segment is highly dependent on charging infrastructure, battery supply chains, and government incentives.

Margin Pressure from OEMs

OEMs, facing their own margin squeeze, are pushing component pricing down by 2-4% annually in real terms. Sustainable defence for component manufacturers is technology differentiation, cost-leadership through scale and efficiency enhancements.

Government Regulations and Compliance

The auto component industry faces uncertainty and increased production costs due to constantly changing government policies and regulations, as manufacturers adapt to new emissions and safety standards. Evolving labor regulations, including the implementation of new labor codes and state-specific requirements may necessitate changes to workforce policies, payroll structures, contractor management and compliance processes, resulting in higher administrative costs and operational complexity.

Demand Slowdown In Developed Markets

US, Europe and Japan together account for 50% of global auto demand by value and 60% of auto-component import value. Any combination of (i) Fed reaction-function tightening, (ii) European recession, or (iii) Japanese yen-driven import compression hits Indian auto exports through volume and price simultaneously.

Geopolitical Risks

Geopolitical risks, including changes in tariff structures, regional conflicts, trade restrictions, and supply chain

disruptions across key markets, may impact the global business environment. Such developments could result in volatility in commodity prices, logistics costs, currency movements, sourcing dynamics, and overall business continuity, potentially affecting operations and financial performance.

Company Overview

Lumax Auto Technologies Limited (‘LATL or ‘the Company) stands as a leading integrated automotive component manufacturer in India, with a diversified portfolio spanning advanced plastics, mechatronics, structures and control systems, aftermarket solutions and alternate fuel systems. With over four decades of operational excellence, LATL has transitioned from a traditional component supplier to a system-level solution provider, driven by increasing content per vehicle (CPV), premiumization trends and deeper integration with OEM platforms.

The Company operates through a robust ecosystem of global partnerships and joint ventures, including collaborations with companies such as Mannoh, Cornaglia, IAC, Alps Alpine, Ituran, Jopp, FAE and Yokowo, enabling access to advanced technologies and enhancing product capabilities across segments.

LATL has a strong manufacturing footprint of 28 facilities spread across Haryana, Gujarat, Madhya Pradesh, Maharashtra, Uttarakhand, Rajasthan and Karnataka across India and serves over 20 prominent customers in the automotive sector including leading OEMs such as M&M, Bajaj Auto, Maruti Suzuki, Tata Motors and HMSI.

BUSINESS SEGMENTS

Advanced Plastics and Interior Systems

The Advanced Plastics segment is the largest contributor to the Companys revenue, driven by strong growth in passenger vehicle platforms and increasing demand for premium interior solutions.

The segment comprises:

• I nterior modules such as cockpits, door panels, trims and consoles

• Blow-moulded and injection-moulded components

• High-value plastic assemblies

The acquisition followed by integration of IAC India has further strengthened the Companys presence in this segment, enabling scale benefits, enhanced customer engagement and improved margins. Growth is supported by increasing CPV and premiumization trends across OEM platforms.

Structures and Control Systems

The Structures and Control Systems segment comprises mechanical and structural components, including gear shifters, metallic assemblies and control systems.

Key growth drivers include:

• Increasing penetration of automatic transmission systems

• Expansion of product portfolio into higher-value components

• Export opportunities through joint venture partnerships The segment continues to deliver steady growth, supported by strong OEM relationships and increasing adoption of premium features in vehicles.

Aftermarket

The Aftermarket segment remains a stable and high-margin business for the Company, supported by a well-established distribution network and strong brand presence.

The segment includes:

• Lighting and other automotive components

• Replacement parts

During the year, this segment continued to outperform other segments, driven by focused channel expansion, product portfolio enhancement and strategic initiatives to improve reach and service levels.

Mechatronics

The Mechatronics segment represents the Companys focus on future-ready technologies, including sensors, telematics, antennas and electronic modules.

This segment is witnessing strong growth momentum, driven by:

• Increasing adoption of connected and intelligent vehicle technologies

• New product launches and commencement of production (SOPs)

• Strong order book across product lines

As the segment scales up, it is expected to contribute meaningfully to both revenue growth and margin expansion over the medium term.

Alternate Fuel Systems

The Alternate Fuel segment, led by Greenfuel Energy, is a recent strategic foray into clean mobility solutions.

The segment includes:

• CNG and LNG systems

• Fuel delivery and control components

The business is witnessing strong traction, supported by regulatory tailwinds, increasing adoption of alternate fuel vehicles and ongoing localization initiatives. The Company continues to expand its product offerings and enhance CPV in this segment.

Others

This segment includes legacy and smaller business lines, including lighting and other diversified components.

While relatively smaller in contribution, these businesses continue to provide stable revenues and support the Companys diversified product portfolio.

Segment	Core Products	Key Partnerships/Entities
Advanced Plastics and Interiors	Cockpit, trims, panels	IAC India (now part of standalone)
Structures and Control Systems	Gear shifters, metal parts	Mannoh and Jopp
Mechatronics and Electronics	Sensors, telematics, antennas	Yokowo, Alps Alpine, Ituran, FAE
Alternate Fuel Systems	CNG/LNG kits	Greenfuel
Aftermarket	Spare parts, lighting	Standalone
Lighting/Legacy	LED, 2W lighting	Standalone

Strategic Developments During FY 2025-26

• IAC India Integration: During FY 2025-26, the Company completed the acquisition of the remaining 25% stake in IAC India and merged with LATL with effect from October 01, 2025. This strengthens LATLs presence in premium interior systems and plastics, while enhancing scale, margins and relationships with leading PV OEMs.

• Greenfuel Energy Scaling: Following the acquisition in FY 2024-25, the Greenfuel business scaled up during FY 2025-26, solidifying LATLs entry into alternate fuel systems (CNG/LNG). The business is expected to contribute meaningfully to revenues with higher margin profile and strong growth visibility. While FY 2024-25 reflected only a part-year contribution from Greenfuel, FY 2025-26 marks the first full year of its consolidation, supporting overall revenue growth.

• Shift Toward Passenger Vehicles: LATL continues to benefit from increasing exposure to the PV segment, which now contributes ~53% of revenues, supported by strong OEM programs and premiumization trends.

• Order Book Strength: The Company maintains a strong order book of Rs. 1,450 Crore, with 40% linked to EV and future mobility platforms, providing medium-term revenue visibility.

• Manufacturing Initiatives: During FY 2025-26, the Company continued to strengthen its manufacturing footprint in line with its strategic roadmap with land parcels acquired in Gujarat. Earlier in FY 2024-25, the Company had announced investment in land in the Kharkhoda region in Haryana. These investments are intended to strengthen future manufacturing and supply chain readiness, while enhancing proximity to key customers and emerging business opportunities.

• Technology Center: The Company has established a dedicated Technology Center in Bengaluru, named Smart Hub for Innovation and Future Trends (SHIFT), to strengthen its capabilities in electronics, digital systems and next-generation mobility solutions. The Bengaluru hub serves as a key platform for research, development and innovation, enabling the Company to enhance its capabilities in electronics and mechatronics and support its transition toward a system-level solution provider.

• Global Expansion: The Company successfully

established its first representative office in China, which became operational in January 2026, serving as a strategic resource center. This office is dedicated to benchmarking advanced manufacturing and electronic trends—particularly in premium interior cabin spaces— while optimizing sourcing and tooling for new product development. This initiative is yielding tangible results, including the signing of Technology Arrangements (TAs) with localized partners and securing marquee business wins.

Business Outlook

The Company continues to enhance its CPV across key segments, with steady progress in interior systems and significant headroom in alternate fuel solutions. The Greenfuel business is witnessing strong traction, supported by localisation initiatives and new product additions, which are expected to drive incremental growth. The mechatronics vertical is scaling up rapidly, backed by new program launches and expanding application areas. The aftermarket segment continues to outperform industry growth and is

expected to maintain strong momentum going forward. Overall, the Company remains focused on improving its product mix and scale, with a targeted margin expansion driven by higher contribution from premium and technology- led businesses.

At LATL, the journey continues to be anchored by a clear and ambitious strategic framework. The mid-term vision defines four critical goals that steer the Companys growth and transformation:

• 20%+ revenue CAGR, driven by new product segments and strategic acquisitions

• 20%+ Return on Capital Employed (ROCE), reflecting disciplined capital allocation

• Vision for 20% EBITDA margin, through sustained operational excellence

• 20%+ revenue contribution from clean and future mobility solutions, including EVs, CNG platforms, electronification, and software-defined systems

LATL remains well-positioned to benefit from:

• Premiumization in automotive interiors

• Increasing electronics and CPV

• Growth in alternate fuel and EV ecosystems

• Expansion in aftermarket segment Key Growth Drivers

Strategic Transformation and Premiumization: The

cornerstone of LATLs growth is the ‘BRIDGE: Bold Roadmap Integrating Diverse Growth Engines mid-term plan (FY 2025-26-FY 2030-31), a roadmap designed to transform the Company from a traditional Tier-1 supplier into a Tier-0.5 system integrator. This shift is fuelled by a profound trend toward premiumization across the automotive sector, as OEMs prioritize sophisticated interior cabin solutions, high- end features and software-enabled functionalities. Mechatronics Segment: Characterized by high engineering intensity, this segment is scaling internal capabilities in vehicle electronics, including a strategic foray into Body Control Modules (BCMs). The Company is also commissioning a mega plant in Manesar to house multiple technology joint ventures, which is expected to further accelerate the trajectory of this division.

Clean Mobility: Expanding into clean mobility remains a core priority, with the Company targeting 20% of its total revenue from this segment by FY 2030-31. This driver is anchored by Greenfuel Energy Solutions, which provides specialized delivery systems for CNG, Hydrogen, and LNG platforms. A key milestone in this segment was the domestic localization of ferrule-less tubes and fittings, positioning the Company

as a first-to-market provider for major automotive platforms in India.

Value-led Growth: The Company is prioritizing value-led growth by significantly increasing its CPV and wallet share with marquee OEMs. By providing integrated assemblies and ‘one interface solutions, the Company is successfully deepening its penetration into the high-growth passenger vehicle and SUV segments. This strategy allows the Company to capture a larger portion of the vehicles total value while insulating its performance from broader industry volume fluctuations.

Aftermarket Focus: A strategic overhaul of the Aftermarket segment has transitioned the Company to a demand-led growth model focused on secondary market pull. By aggressively expanding its product portfolio and strengthening its engagement with retailers and mechanics, the division achieved a robust growth in FY 2025-26. Management remains committed to an accelerated growth trajectory for this vertical, which consistently delivers margins above the consolidated average.

New Product Launches and Program Wins

Throughout FY 2025-26, the Company secured several key strategic wins and executed multiple new program launches aligned with its BRIDGE mid-term plan and its evolution toward becoming a Tier-0.5 system integrator.

Key Strategic and Order Wins:

• Alternate Fuel Systems Localization: The Company achieved an industry-first localization of specialized

delivery system components for alternate fuel platforms, which were previously imported by all domestic manufacturers.

• Mechatronics Expansion: A significant lighting

program was secured through technology scouting with an international partner. Additionally, a technology joint venture established a strong entry into a major vehicle manufacturer for communication and antenna systems.

• The Company successfully commenced supplies for several high-profile vehicle platforms across its various product verticals:

o Passenger Vehicles: Commenced supplies

for multiple platforms featuring localized delivery systems, shifters, switches, sensors, and sophisticated interior and emission-related components. These wins underscore the Companys ability to participate across various platforms and move up the value chain. o Two-Wheelers (2W): Began supplying frames and specialized plastic components for various domestic and export platforms.

These launches, particularly in the high-value electronics and alternate fuel segments, have been instrumental in driving the Companys CPV growth and its historic high revenue performance in FY 2025-26.

FINANCIAL HIGHLIGHTS

Standalone

On standalone basis, the revenue from operations during the Financial Year 2025-26 stood at Rs. 3,60,548.91 Lakhs as compared to Rs. 2,87,146.66 Lakhs in the last year, registering a growth of 25.56%. For the Financial Year 2025-26, the profit before tax stood at Rs. 27,309.74 Lakhs as compared to Rs. 22,766.58 Lakhs in the last year, registering a growth of 19.96%. The Profit after Tax (PAT) stood at Rs. 20,687.70 Lakhs as compared to Rs. 17,171.10 Lakhs, registering an increase of 20.48%. The Basic and Diluted Earnings for the FY 2025-26 per share stood at Rs. 30.35 registering an increase of 20.48%.

Consolidated

On consolidated basis, the revenue from operations during the Financial Year 2025-26 stood at Rs. 4,87,033.03 Lakhs as compared to Rs. 3,63,666.98 Lakhs in the last year, registering a growth of 33.92%. The profit before tax for the FY 2025-26 stood at Rs. 40,592.12 Lakhs as compared to Rs. 30,816.17 Lakhs in the last year witnessing a significant increase of 31.72%. The Profit for the FY 2025-26 stood at Rs. 33,714.59 Lakhs as compared to Rs. 22,916.21 Lakhs registering a significant increase of 47.12%. The Basic and Diluted Earnings per share for the FY 2025-26 stood at Rs. 40.91 registering a significant increase of 56.86%.

Details of Key Financial Ratios

Particulars	As at/for the year ended March 31, 2026	As at/for the year ended March 31, 2025	% Change	Reason for variance (>+-25%)
(a) Current Ratio (times)	0.92	1.00	(9%)	Not Applicable
Current Assets	1,39,979.18	1,19,521.30
Current Liabilities	1,52,643.24	1,18,932.03
b) Debt-Equity Ratio (times)	0.95	0.70	36%	Majorly due to increase in lease liabilities and short term borrowings in current financial year
Total Debt + Lease Liabilities	98,442.70	69,225.40
Shareholders Equity	1,03,62742	99,056.25
(c) Debt Service Coverage Ratio (times)	1.40	0.70	99%	Majorly due to substantial repayment of borrowings in the previous financial year.
Profit after tax + Interest + Depreciation	41,429.21	33,849.68
Principal repayment + Interest payments + Lease payments	29,680.19	48,303.22
(d) Return on Equity Ratio (%)	19.8%	19.2%	3%	Not Applicable
Profit after tax	20,687.70	17,171.10
Average Shareholders Equity	1,04,650.46	89,533.52
(e) Inventory Turnover Ratio (times)	9.62	8.83	9%	Not Applicable
Cost of goods sold	2,30,617.78	1,86,971.11
Average Inventory	23,964.44	21,174.99
(f) Trade Receivables Turnover Ratio (times)	5.01	5.03	(1%)	Not Applicable
Revenue	3,60,548.91	2,87146.66
Average Trade Receivables	72,030.59	57,047.40
(g) Trade Payables Turnover Ratio (times)	3.88	4.06	(5%)	Not Applicable
Purchase	2,29,400.07	1,93,723.85
Average Trade payables	59,184.77	47661.03
(h) Net Capital Turnover Ratio (times)	270.23	25.80	947%	Majorly due to increase in current borrowings in current financial year.
Revenue	3,60,548.91	2,87146.66
Working Capital (excluding current maturity of non-current borrowings)	1,334.25	11,130.39
(i) Net Profit Ratio (%)	5.7%	6.0%	(4%)	Not Applicable
Profit after tax	20,68,770.00	17,17,110.00
Revenue from contracts with customers	3,60,54,891.00	2,87,14,666.00
(j) Return on Capital Employed Ratio (%)	18.9%	19.3%	(2%)	Not Applicable
Profit before tax + Interest	35,664.78	29,587.64
Capital employed (Tangible networth + Total Debt (including lease liabilities) + Deferred tax liability)	1,88,835.07	1,53,315.80
(k) Return on Investment Ratio (%)	1.7%	2.1%	(22%)	Majorly due to decrease in gain on investments in current financial year
Gain Recognized in statement of profit and loss	364.26	410.90
Current investment (weighted average)	22,000.00	19,239.21

Risk Management

The Company has established a structured risk management framework to identify, assess and mitigate key business risks, ensuring long-term sustainability and resilience across its operations.

Risk Category	Impact	Mitigation Strategies
Economic Risk	Slowdown in the automotive sector due to macroeconomic factors such as inflation, interest rates, global geopolitical instability or weak consumer demand could impact volumes.	Diversified customer base across OEMs and segments (PV, 2W, CV), increasing focus on the aftermarket business and expansion into export markets to reduce volatility.
Environmental Risk	The automotive industry contributes to air pollution, greenhouse gas emissions and impacts water resources and ecosystems.	Promoting sustainable mobility solutions: Using Greenfuels expertise in alternate fuel systems like CNG, LNG solutions. Enhancing fuel efficiency. Adopting sustainable manufacturing practices. Ensuring compliance with environmental standards. Implementing initiatives like Quality Control Circles (QCC), Total Productive Maintenance (TPM) and Lean Across the Company (LAC) to optimize production efficiency and reduce waste.
Competitive Disruption	Rapid technological shifts and intensified competition from EV-focused and low-cost global suppliers may reduce demand for traditional automotive components, resulting in revenue decline, margin pressure, and potential obsolescence of existing manufacturing capabilities.	The Company mitigates competitive disruption risk through portfolio diversification, investment in advanced technologies, strategic partnerships, operational excellence initiatives, customer diversification, and continuous capability enhancement.
Labor and Talent Risk	A shortage of skilled labor or workforce disputes can disrupt production and business operations.	Implementing robust talent acqu isition and reten tion programs. Investing in training and development programs and fostering a positive work environment.
Supply Chain Risk	Disruptions due to natural calamities, geopolitical instability, or raw material shortages can delay production and increase costs.	Diversified sourcing strategy, localization of critical components, long-term supplier partnerships and continuous monitoring of supply chain risks.
Technological Risk	Accelerated pace of technological innovation may render existing products obsolete or reduce competitiveness.	Strong focus on R&D and innovation, establishment of technology centers (e.g., Bengaluru SHIFT) and collaborations with global technology partners.
Regulatory and Compliance Risk	Changes in emission norms, safety regulations and compliance requirements could increase costs or necessitate product redesign.	Continuous monitoring of regulatory developments, proactive product development aligned with future norms and adherence to global quality and compliance standards.
ESG and Sustainability Risk	Failure to meet evolving environmental, social, and governance expectations from regulators, OEMs, investors, and customers may result in increased compliance costs, loss of business opportunities, reputational damage, and reduced long-term competitiveness.	The Company mitigates ESG and sustainability risks through energy-efficient operations, responsible sourcing, strong governance practices, workforce safety initiatives, transparent ESG reporting, and long-term investments in sustainable manufacturing technologies.
Cybersecurity Risk	Operating in an increasingly digital automotive ecosystem and is exposed to cybersecurity risks including ransomware, phishing, data breaches, system disruptions and third party vulnerabilities. Such incidents may impact operations, supply chain continuity, confidential information, regulatory compliance and stakeholder trust.	Implemented a risk-based cybersecurity and information security framework supported by appropriate technology controls, governance mechanisms and monitoring processes. Key measures include access controls, network and endpoint security, periodic vulnerability assessments and security audits, data backup and recovery protocols, employee awareness programs and incident response procedures. Also undertaking ongoing review and enhancement of its cybersecurity practices to address emerging threats, strengthen resilience and support business continuity.

Human Resources

The Company recognizes that its people are a key enabler of its transformation into a technology-driven mobility solutions provider. LATL continues to focus on building a future-ready, agile and innovation-led workforce.

Key initiatives during the year include:

• Strengthening capabilities in engineering, product development and system integration, aligned with increasing CPV

• Building expertise in digital technologies, automation and Industry 4.0 practices across manufacturing and operations

• Enhancing competencies in new and alternate fuel technologies, supporting the Companys transition toward future and clean mobility solutions

• Focus on leadership development, training programs and cross-functional skill enhancement to drive organizational effectiveness

• Continued emphasis on employee engagement, safety and inclusive workplace practices, fostering a collaborative and high-performance culture

With a dedicated workforce of 2013 permanent employees, the Company remains committed to attracting, developing and retaining talent to support its long-term growth strategy.

Internal Controls and Systems

The Company has in place a robust internal control framework designed to ensure operational efficiency, financial integrity and regulatory compliance.

Key elements of the control framework include:

• Well-defined policies, procedures and standard operating processes across all functions

• Regular internal audits and risk assessments to identify gaps and strengthen controls

• Strong financial reporting systems ensuring accuracy, transparency and timely disclosures

• Adoption of ERP systems and digital monitoring tools to enhance operational visibility and decision-making

• Continuous improvement through automation, data analytics and process optimization initiatives

The internal control systems are periodically reviewed and strengthened to align with the evolving scale and complexity of operations, ensuring effective governance across the organization.

Cautionary Statement

The statements in the Management Discussion and Analysis Report regarding the Companys projections, estimates and expectations may be considered ‘forward-looking within the scope of applicable laws and regulations. Actual results may vary from those expressed or implied due to factors such as economic conditions impacting demand and supply, price fluctuations in domestic and international markets, changes in government regulations, tax laws and other relevant statutes. The Company assumes no obligation to publicly amend, modify, or revise any ‘forward-looking statements based on subsequent developments, new information, or future events.