Maiden Forgings Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS

The objective of this report is to convey the Managements perspective on the external environment and steel industry, as well as strategy, operating and financial performance, material developments in human resources and industrial relations, risks and opportunities and internal control systems and their adequacy in the Company during the FY2025-26. This should be read in conjunction with the Companys financial statements, the schedules and notes thereto and other information included elsewhere in the Annual Report. The Companys financial statements have been prepared in accordance with Indian Accounting Standards (‘Ind AS) complying with the requirements of the Companies Act, 2013, as amended and regulations issued by the Securities and Exchange Board of India (‘SEBI) from time to time.

In 2025, the global economy grew at an estimated rate of 3.4% despite significant turbulence. The year was marked by record increases in U.S. tariffs and heightened trade policy uncertainty, a raft of trade deals the impact of which is yet to play out, and a surge in AI linked investments. Key factors impacting economic activity included the weaponisation of trade, and the ongoing transition towards technology-driven growth, particularly in North America and Asia.

Geopolitical risks intensified during the year, with escalating conflict in the Middle East. These developments heightened uncertainty across energy markets and global trade corridors, increasing volatility in commodity prices and disrupting cross-border logistics.

These challenges and uncertainties are continuing into FY2026-27.

India remained one of the fastest-growing major economies, with a growth rate of 7.5% in FY2025-26. For FY2026-27, real GDP is projected to expand by 6.7%. Headline CPI inflation is projected to rise to the RBIs target of 4% in FY2026-27 from a record low of 2.2% in FY2025-26. Despite this rise, the RBI is expected to maintain current policy with the repo rate settling at 5.0%. This suggests that while nominal rates may stay low to support growth, the narrowing gap between inflation and interest rates will require careful management to ensure real interest rates continue to stimulate consumer spending in the auto and housing sectors.

Public capex remains high at over 5% of GDP, focusing on infrastructure and defence. The sustained investment in steel-intensive projects, such as those under the National Infrastructure Pipeline (NIP 2.0), ensures positive steel demand.

Your Company is engaged in the business of manufacturing of wide range of Bright Steels bars and Wires which main aim to provide the best quality of its products to its customers and to meet their dynamic demand. Your Company has experience of more than 20 years in the manufacturing of bright steel bars and it has a complete in-house manufacturing facility, including testing, pickling, and annealing, and accordingly, has become a domestic leader in the Industry, offering reliable customized solutions and constant access to new and cutting-edge solutions to its customers domestically and globally.

OPPORTUNITIES/ THREATS AND OUTLOOK

India continues to be a global leader in steel demand growth, with consumption expected to grow at a healthy rate of 7-8% in FY2026-27. Apparent Steel Use is projected to reach 176-178 MT in FY2026-27, driven by the National Infrastructure Pipeline and emerging segments like data centres, defence, and renewable energy. Government Demand & Supply commitment remains strong, with public infrastructure spending remaining robust. While production is expected to outpace demand growth due to massive capacity, India is transitioning toward becoming a sizable net exporter.

During the year under review, the Company continued to strengthen and diversify its product portfolio in line with evolving market requirements and emerging industry trends. The Company remains focused on enhancing its presence in both domestic and international markets by offering value-added and quality products, thereby creating opportunities to expand its export footprint and improve overall profitability.

The Indian steel industry continued to witness healthy demand during the year, supported by sustained growth in infrastructure development, construction, automotive, engineering, railways, renewable energy, and capital goods sectors. Government initiatives towards infrastructure expansion, manufacturing under the "Make in India" programme, and increasing investments in industrial development have further contributed to the growth in steel consumption. The Company believes that these favourable market conditions, coupled with its strategic initiatives and operational capabilities, position it well to capitalize on the growing demand and achieve sustainable long-term growth.

RISKS AND CONCERNS

Your Company has established a well-defined process of risk management, wherein the identification, analysis and assessment of the various risks, measuring of the probable impact of such risks, formulation of risk mitigation strategy, and implementation of the same takes place in a structured manner. Though the various risks associated with the business cannot be eliminated completely, all efforts are made to minimize the impact of such risks in the operations of the Company.

SEGMENT WISE AND PRODUCT WISE PERFORMANCE

Your Company is carrying out the business of manufacturing of wide range of bright steel bars and wires and accordingly, there is no segment reporting is required.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the financial year 2025-2026, Your Company has shown good performance an all aspects as follows:-

(Amount in lakhs)

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Your Company has in place adequate internal financial controls that are commensurate with the size and nature of its operations of Your Company and has been operating satisfactorily. Further, Internal control systems comprise policies and procedures that are designed to ensure the reliability of financial reporting, timely feedback on achievement of operational and strategic goals, compliance with policies, procedures, applicable laws and regulations, and that all assets and resources are acquired economically, used efficiently, and adequately protected.

DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THEREFORE, INCLUDING

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

The employees are the backbone and true assets for the success of Company. Your Company on regular basis takes initiatives for their welfare; development, up gradation in their performance in order to build a strong team of talented professionals. Your Company human resources are commensurate with the size, nature and operations of the Company. Further, Your Companys total permanent employee strength as on 31st March 2026 stood at 98 and it continues to maintain open and cordial employee relations with the employees.

Moreover, the establishment of Vigil Mechanism plays an important role as a watchdog via which employees and directors can report their genuine concerns to the management of Your Company.

DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF

During the year under review, Return on Net Worth (%) of the Company decreased by 21.73% due to decreased in PAT due to adverse market conditions.

CAUTIONARY STATEMENT

Statements in this ‘Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations, plans or industry conditions or events are ‘forward-looking statements within the meaning of applicable securities laws and regulations. Actual results, performance, or achievements 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, competitors pricing, changes in government regulations, tax regimes, and economic conditions within India. The Company assumes no responsibility to publicly update, amend, modify, or revise any forward-looking statements, based on any subsequent development, new information, or future events or otherwise except as required by applicable law.