Maharashtra Seamless Ltd Management Discussions

The Management Discussion and Analysis ( MDA ) provides Management s perspective on the operating environment, industry dynamics, business performance, financial performance, key risks and strategic priorities of Maharashtra Seamless Limited ( the Company ) during FY 2025 26.

This should be read in conjunction with the Company s financial statements, the schedules and notes thereto and other information included elsewhere in the Annual Report. The Company s financial statements have been prepared in accordance with Indian Accounting Standards ( Ind AS ) complying with requirements of the Companies Act, 2013, as amended and regulations issued by the Securities and Exchange Board of India ( SEBI ) from time to time.

Economic Environment

The global economic environment during FY 2025 26 remained in uenced by geopolitical developments, evolving monetary policies, commodity price volatility and changing trade dynamics. These factors continued to affect investment decisions across energy, infrastructure and industrial sectors.

For the steel and seamless pipes industry, demand remained closely linked to investments in oil and gas exploration and production, pipeline infrastructure, energy security, industrial activity and infrastructure development.

The industry also continued to face competitive pressure from excess capacity in certain international markets. Increased availability of competitively priced imports, particularly from China, placed pressure on domestic pricing and realisations. Against this backdrop, companies with established manufacturing capabilities, strong customer relationships, technical expertise, diversi ed product portfolios and robust balance sheets remain better positioned to navigate cyclical fluctuations.

Indian Economy

India continued to demonstrate resilience during FY 2025 26, supported by domestic demand, infrastructure development, manufacturing activity and continued focus on capital expenditure.

Investment in energy infrastructure remains an important structural driver of Indias economic growth. Continued development of oil and gas exploration and production, pipeline networks, city gas distribution, water infrastructure and industrial projects is expected to support long-term demand for steel pipes.

However, during FY 2025 26, the pace of expenditure and tendering activity in the oil and gas sector remained below expectations. As a significant portion of the Companys seamless pipe business is linked to oil and gas expenditure, the slower pace of tendering and project awards affected order in flows and revenue visibility during the year.

The Company believes that the underlying long-term opportunity remains intact, with the timing of demand recovery being dependent on the pace of capital expenditure and project execution across the sector.

Industry Overview

The seamless steel pipe industry serves critical applications across oil and gas exploration and production, transportation, power, infrastructure and industrial sectors.

Oil and gas remains one of the principal demand drivers for seamless pipes. Accordingly, industry demand is closely linked to capital expenditure by oil and gas companies, government infrastructure spending and the pace of tendering and project execution.

During FY 2025 26, the industry faced pressure from two key factors: slower expenditure and tendering in the oil and gas sector and continued competitive pressure from Chinese imports.

The increased availability of imported seamless pipes, particularly from China, affected domestic pricing and realisations. The competitive environment remained challenging during the year, with Management continuing to engage with relevant stakeholders on issues relating to imports and trade-remedial measures.

At the same time, the industry continues to present significant medium and long term opportunities arising from Indias growing energy requirements, pipeline infrastructure, import substitution and increasing demand for technically specialised products. The ability to develop and manufacture value-added products, maintain quality standards and establish long-term customer relationships is expected to remain an important differentiator in the industry.

Financial Performance

( in Crores except EPS)

Particulars	FY 2025-26	FY 2024-25	Change
Revenue from Operations	4671	5266	-11%
Other Income	387	197	+96%
EBIDTA	684	922	-26%
Depreciation	110	100	+10%
Finance Cost	3	3	-
Profit after tax	718	793	-9%
Earnings per share ()	54	59	-9%

Type of Ratio	FY 2025-26	FY 2024-25	Change
Trade Receivable Turnover	7.78	8.94	-12.98%
Trade Payable Turnover	14.91	15.39	-3.12%
Inventory Turnover	2.64	2.46	+7.32%
Debt Service Coverage Ratio	181.99	9807.13	-98.14% 1
Current Ratio	14.13	16.41	-13.89%
Debt Equity Ratio	-	-	-
Operating Profit Margin (%)	14.70%	17.50%	-16.00%
Net Profit Margin (%)	15.40%	15.10%	1.99%
Return on Capital Employed	13.18%	15.35%	-14.14%
Return on Investments	10.30%	5.85%	76.07% 2

Explanation of percentage change in ratios greater than 25%

1. Debt Service Coverage Ratio Due to small increase at absolute level in debt obligations 2. Return on Investments Due to higher income from investments

Operational Performance

FY 2025 26 was a year of moderation in operating performance for the Company, following a period of strong pro tability in the preceding years. Revenue from operations stood at 4,671 crores, compared with 5,266 crores in FY 2024 25, representing a decline of approximately 11%. While the quantity dispatched did not see material change, the moderation in revenue from operations was primarily attributable to slower order in flows, lower expenditure in the oil and gas sector, continued competitive pressure from Chinese imports and consequent pressure on market realisations. The impact of the weaker demand environment was visible particularly during the first half of the year. Order booking declined significantly during the first quarter as tendering activity by oil and gas companies remained below expectations. The Company nevertheless continued to maintain its dispatch levels and focused on protecting pro tability rather than pursuing volumes through aggressive pricing. The Companys ability to sustain dispatches despite lower order in flows reflects the strength of its customer relationships and established position in the market.

The Companys order book subsequently improved and remained at healthy levels through the year, providing reasonable near-term revenue visibility. The Company continued to focus on strengthening its presence in value-added products, import substitution and specialised applications. These areas remain important to the Companys strategy of improving product differentiation and reducing dependence on commodity-oriented volumes.

Going forward, improved capacity utilisation, higher value addition and a recovery in oil and gas-related demand are expected to remain important drivers of operating performance.

Key Factors In uencing FY 2025 26 Performance

The moderation in the Company s financial performance during FY 2025 26 was attributable to a combination of industry, demand, pricing and accounting factors.

• Lower Oil & Gas Expenditure

The Companys seamless pipe business has significant exposure to oil and gas applications. During the year, expenditure and tendering activity by oil and gas companies remained below historically anticipated levels. The slower pace of tendering and project awards affected order in flows and consequently revenue visibility.

• Chinese Imports and Competitive Pressure

Continued dumping of seamless pipes from China remained a significant challenge for the domestic industry. The increased import pressure resulted in greater competition in the domestic market and contributed to pressure on product realisations and margins.

• Lower Realisations

Lower market realisations, together with weaker order in flows, affected the Companys operating pro tability during the year. The Company maintained pricing discipline and did not pursue volumes at the expense of pro tability. This approach resulted in some moderation in order intake but was consistent with the Companys focus on sustainable value creation.

• Timing of Project Awards

While opportunities and tenders remained available in the market, the conversion of tenders into actual orders and project execution was slower than anticipated. This timing mismatch affected the Companys revenue trajectory during the year despite the continued long-term requirement for energy infrastructure.

Order Book

The Companys order book remained an important indicator of business resilience during the year. The order book was at its lowest towards the initial part of FY 2025-26 and gradually revived as the year progressed but still remained below the levels anticipated. The order book generally provides approximately three to four months of revenue visibility.

The ability to replenish the order book during a period of subdued industry demand demonstrates the Companys established market position and customer relationships.

Pro tability

Operating pro tability remained under pressure during FY 2025 26, primarily due to lower realisations, subdued demand and competitive pricing pressure. This year was particularly affected by the combination of lower oil and gas expenditure and

Chinese dumping.

The Company remains focused on protecting operating pro tability through pricing discipline, improved product mix, manufacturing e ciencies and greater contribution from value-added products.

Value-Added Products and Product Development

Development of value-added products remains a key component of the Companys long-term strategy. The Company has developed capabilities across specialised product categories including:

Cold-drawn pipes

• Cylinder pipes

Drill pipes

Sour-service subsea seamless pipes

• Premium connections

These products address technically demanding applications and provide opportunities for import substitution as well as participation in higher-value domestic and international markets.

The Company completed its cold-drawn pipes project during the year. The development of premium connections also represents an opportunity to expand the Companys presence in specialised applications. The Companys focus on value addition is intended not only to support incremental revenue but also to improve product differentiation, deepen customer relationships and strengthen the quality of earnings over the medium term.

Capital Expenditure

The Company continues to undertake capital expenditure selectively, with emphasis on projects that enhance manufacturing capabilities, remove operational bottlenecks and improve long-term returns. The Companys capital expenditure programme is being funded through internal accruals.

A key project during the year was the cold-drawn pipes facility, which was completed during FY 2025 26. The Company also progressed with the Telangana nishing line project. The project is intended primarily to address an existing nishing bottleneck. Management expects the project to enable better utilisation of existing production capacity that is currently constrained by absence of commensurate nishing capacities.

The Company will continue to evaluate capital expenditure opportunities based on market demand, strategic relevance and expected returns, while maintaining a disciplined approach to capital allocation.

Financial Strength and Treasury

The Company continued to maintain a strong financial position during FY 2025 26. Its substantial treasury position provides resilience through industry cycles and enables the Company to finance working capital and capital expenditure requirements largely through internal resources.

The Companys conservative financial pro le also provides flexibility to evaluate strategic opportunities when valuations become attractive. Management continues to follow a disciplined treasury and capital allocation approach, with emphasis on preservation of capital, liquidity and appropriate risk-adjusted returns.

The Companys strong balance sheet remains an important competitive advantage, particularly in a cyclical industry where financial flexibility can enable investments and growth during periods of market weakness.

Working Capital Management

E cient working capital management remains an important area of focus given the cyclical nature of the steel and pipes industry. The Company continues to closely monitor inventory, receivables and payables and align procurement and production with customer requirements and market conditions.

The Companys strong liquidity position provides adequate flexibility to meet working capital requirements while continuing to invest in strategic projects. Management will continue to focus on maintaining an optimum working capital cycle without compromising customer service or operational continuity.

Exports

Exports remain an important opportunity for the Company to diversify its customer base and expand its addressable market. During FY 2025 26, the international market remained in uenced by global trade developments, competitive pricing and evolving tari and trade arrangements.

The Company continues to focus on markets and applications where its technical capabilities, product quality and specialised products provide competitive differentiation. The Company will continue to selectively pursue export opportunities while maintaining pricing discipline and focusing on sustainable returns.

Human Resources

The Company recognises its people as an important enabler of operational excellence and sustainable growth. During FY 2025 26, the Company continued to focus on employee development, technical skill enhancement, workplace safety and operational discipline.

The Companys manufacturing operations require specialised technical capabilities, and continued investment in employee training and development remains important to maintaining product quality, safety and productivity. As on 31 March 2026, the Company had 2027 employees.

Risk Management

The Company has established a comprehensive Risk Management Framework commensurate with the size and complexity of its operations.

• Demand Risk

The Companys business is significantly linked to the oil and gas and infrastructure sectors. A slowdown in government or oil and gas capital expenditure may affect order in flows and capacity utilisation.

Mitigation: The Company continues to diversify its product portfolio, develop value-added products, expand customer relationships and pursue export opportunities.

• Import and Competitive Risk

Aggressive pricing and increased imports, particularly from China, may adversely affect domestic prices and margins. Mitigation: The Company continues to focus on value-added products, import substitution, technical differentiation and customer approvals, while monitoring developments relating to trade-remedial measures.

• Project Execution Risk

Capital expenditure projects may be affected by execution, commissioning or cost-related risks.

Mitigation: Projects are monitored through defined execution and review mechanisms with emphasis on cost control and timely implementation.

• Export and Geopolitical Risk

Changes in tariffs, trade agreements, geopolitical developments and international demand may affect exports. Mitigation: The Company continues to diversify its geographical exposure and focus on technically differentiated products and markets.

Internal Financial Controls

The Company has established an internal financial control framework commensurate with the size, scale and complexity of its operations. The framework covers financial reporting, operational processes, statutory compliance, authorisation mechanisms and risk management.

Internal audit is undertaken through a risk-based approach, and significant observations are reviewed by the Audit Committee. The Company periodically evaluates the effectiveness of its internal control systems and continues to strengthen processes through appropriate systems, controls and monitoring mechanisms.

Management believes that the Companys internal financial controls are adequate and effective for its current operations.

Strategic Priorities

• Strengthening the Core Pipes Business

The Company will continue to focus on strengthening its position in seamless and specialised pipe applications, particularly across the oil and gas and infrastructure sectors.

• Increasing Value Addition

Increasing the contribution of specialised and value-added products will remain a key priority. These products offer opportunities for greater differentiation and improved realisations.

• Improving Capacity Utilisation

The Company will focus on removing operational bottlenecks and improving utilisation of its existing manufacturing infrastructure.

• Expanding Export Markets

The Company will selectively pursue international markets where its product capabilities and technical expertise provide a competitive advantage.

• Maintaining Financial Discipline

The Company will continue to maintain a strong liquidity position and deploy capital selectively towards projects and opportunities that offer appropriate long-term returns.

• Selective Inorganic Opportunities

The Company will continue to evaluate inorganic opportunities where assets can be acquired at appropriate valuations and where the transaction can create long-term shareholder value.

Outlook and Conclusion

The long-term outlook for Indias energy and infrastructure sectors remains favourable, supported by rising energy requirements, development of oil and gas infrastructure, pipeline expansion, city gas distribution, water infrastructure and industrialisation. In the near term, however, the pace of recovery in the seamless pipe business is expected to remain dependent on the revival of oil and gas expenditure, tendering activity and project awards.

The Company remains focused on strengthening its core seamless pipe business while increasing the contribution of value-added products and improving utilisation of its existing manufacturing assets.

FY 2025 26 was a year of operating moderation for the Company, rather than financial stress. The decline in revenue and operating pro tability was primarily driven by external and cyclical factors, including slower oil and gas expenditure, delayed tendering and project awards, increased competitive pressure from Chinese imports and lower market realisations. Importantly, the Company continued to maintain its manufacturing operations and dispatch levels, replenish its order book and generate strong absolute pro tability. Its robust balance sheet and substantial liquidity position provide resilience through the current industry cycle.

The Companys strategic focus on value-added products, import substitution, capacity utilisation, exports and disciplined capital allocation is expected to strengthen its competitive position over the medium to long term.

Management remains cautiously optimistic about the structural growth opportunity in Indias energy and infrastructure sectors.

A sustained improvement in oil and gas expenditure and tendering activity, together with moderation in import pressure, would provide the key catalysts for recovery in volumes, realisations and operating pro tability.

With established manufacturing capabilities, a strong customer base, specialised product capabilities and financial flexibility, the Company remains well positioned to participate in the next phase of growth in Indias energy and infrastructure ecosystem and remains committed to creating sustainable long-term value for all stakeholders.

For and on behalf of the Board
D.P. JINDAL
Chairman
DIN: 00405579

Place : New Delhi
Date : 7th August, 2026