Mahamaya Steel Industries Ltd Management Discussions

The global economy in FY 2025-26 remained resilient but uneven. Advanced economies saw moderate growth supported by consumer spending, while emerging markets like India continued to outpace global averages. Key challenges included geopolitical tensions, trade restrictions including new U.S. tariffs, volatile energy prices, and climate-related disruptions. Despite this, global investments in infrastructure and clean energy provided support to industrial demand.

India maintained its position as one of the fastest-growing major economies. GDP growth for FY 2025-26 is estimated at 6.5%, driven by strong domestic demand, government capex, and structural reforms. Initiatives like Gati Shakti, PLI schemes, and focus on manufacturing continued to boost investments. However, global trade uncertainties and inflationary pressures posed challenges. Rising urbanization and a growing middle class further supported consumption across sectors.

Global steel trade in 2024 remained volatile due to demand moderation in China and imposition of trade protection measures by various countries. World crude steel production declined marginally to 1,839.4 Million Tonnes in CY2024. While advanced economies faced headwinds from high interest rates and weak manufacturing, emerging economies witnessed growth supported by infrastructure investments. The industry outlook for 2025 is cautiously optimistic, driven by public infrastructure spending and energy transition projects. However, decarbonization regulations, carbon border adjustment mechanisms, and ESG-linked financing are reshaping competitive dynamics and prompting steelmakers globally to invest in low-emission technologies.

India remains the 2nd largest producer and consumer of steel globally. Demand in FY 2025-26 was driven by infrastructure, housing, railways, and automotive sectors. Governments ?11.21 Lakh Crore capex allocation in Budget 2025-26 under Viksit Bharat 2047 gave further momentum. However, the industry faced margin pressure due to volatile raw material prices, rising energy costs, and increased steel imports.

Infrastructure & Urbanization: Continued government spending on roads, railways, and housing will drive steel demand.

Manufacturing Growth: PLI and Make in India are creating new demand from auto, engineering and renewable sectors.

Sustainability: Shift towards green steel and renewable energy opens up opportunities for cost and brand leadership.

Raw Material Price Volatility: Prices of iron ore, coal and power keep fluctuating.

Competition: Pressure from imports and other domestic players.

Regulatory Changes: Stricter environmental norms and compliance requirements.

Economic Slowdown: Any slowdown in key consuming sectors can impact demand.

The Company is primarily engaged in the business of manufacturing and sale of Steel products. There is no separate reportable segment.

The outlook for the Indian steel industry remains positive, supported by the Governments continued focus on infrastructure development, housing and manufacturing under Viksit Bharat 2047. Demand is expected to remain robust from key consuming sectors such as construction, railways, automotive and engineering.

For the Company, the focus in the near term will be on enhancing operational efficiency, improving product mix and optimizing costs.

In line with our long-term strategy of sustainability and energy security, the Company has commenced work on a 130 MW Solar Power Plant for captive consumption. This initiative will not only reduce our dependence on conventional power and lower costs, but will also support our ESG commitments and contribute to a cleaner environment. The project is targeted for commissioning in the next 6 to 8 months.

Further, as part of our diversification strategy, the Company continues to evaluate opportunities in the logistics sector. As communicated earlier, we have identified approximately 100 acres of prime land owned by the Company for development of a Logistics Park. While the primary focus for this year remains on the solar project, we intend to pursue the logistics initiative in the coming years. This will enable us to tap into the growing demand for logistics infrastructure and create an additional revenue stream for the Company going forward.

Overall, with our focus on efficiency, green energy and strategic diversification, the Company is well positioned to capitalize on future growth opportunities and create long-term value for all stakeholders.

The Board identifies and categorizes risks in the areas of operations, finance, marketing, regulatory compliances and corporate matter. The Company re-views periodically the "List of Risk Area" to identify potential business threats and takes suitable corrective actions. Confirmations of compliance with appropriate statutory requirements are obtained from the respective units/divisions. The Internal Auditor expresses his opinion on the level of risks during the audit of a particular area and reports to the Audit Committee.

The Company also has in place a Risk Management Policy and Procedure for mitigating risks and managing as well as recording them. Further, corrective actions / steps are being taken as and when necessary, in a continuous manner.

The Company believes in systematic working and placing of proper checks. The Company has proper and adequate system of internal controls commensurate with its size and nature of operations to provide reasonable assurance that all assets are safeguarded, transactions are authorised, recorded and reported properly. The internal auditor of the company conducts audit of various department and areas. The Internal Audit Department reports its findings and observations to the Audit Committee which meets to review the audit issues and to follow up implementation of corrective actions. The statutory auditors also provide assurance on the adequacy of the internal control systems in the Company.

During the year, the Company continued to focus on operational efficiency, cost optimization and quality enhancement. The benefits of modernization undertaken in earlier years were reflected in improved productivity and reduced power consumption.

During the year under review, the Company achieved total revenue from operations of ?882.85 Crores as against ?801.76 Crores in the previous year.

Profit Before Tax stood at ?12.09 Crores as against ?8.65 Crores in FY 2024-25.

The financial performance of the Company has been discussed better in Directors Report under the heading "Financial Performance and the State of the Companys Affairs".

The Companys Human Resources Department (HRD) is committed to promoting a safe, collaborative and positive work environment that encourages strong relationships between workers and staff. The HRDs core principle is that employees at all levels play a crucial role in achieving the Companys objectives. The Company promotes a culture of continuous improvement and adaptability by regularly conducting training programs to enhance employees skills, knowledge and productivity while keeping them updated on the latest techniques. The Companys senior management ensures they are readily accessible to provide counselling and effectively address any grievances that arise. The HRD continuously strives to nurture harmony and coordination among workers, staff and senior management. Additionally, the Company prioritizes employee safety by ensuring adherence to safe work practices. As of 31^st March 2026, the company had 908 employees and its industrial relations remained peaceful and cordial throughout the year.

In accordance with the SEBI (Listing Obligations and Disclosure Requirements 2018) (Amendment) Regulations, 2018, 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 financial ratios

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

The Management Discussions and Analysis describe Companys projections, expectations or predictions and are forward looking statements within the meaning of applicable 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 economic conditions affecting demand and supply and price conditions in domestic and international market, changes in Government regulations, tax regimes, economic developments and other related and incidental factors.