Maks Energy Solutions India Ltd Management Discussions

OVERVIEW

The Financial Statements for the financial years 2024-25 and 2023-24, together with the accompanying notes, significant accounting policies, and the Statutory Auditors Report dated May 29, 2025, form an integral part of this Annual Report.

The Companys Financial Statements have been prepared in strict compliance with the applicable provisions of the Companies Act, 2013, Indian Generally Accepted Accounting Principles (Indian GAAP), and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The reporting framework ensures transparency, accuracy, and consistency in reflecting the Companys financial position and performance.

It may be noted that the interpretation and depth of insights derived from these Financial Statements could vary depending on the readers familiarity with Indian accounting standards and practices.

The Companys financial year concludes on March 31 of each year. Accordingly, any reference to a fiscal year in this Report denotes the twelve-month period ending on March 31 of the respective year.

Industry Structure and Developments

The Indian diesel generator (DG) market continues to demonstrate resilience and steady growth, with an estimated Compound Annual Growth Rate (CAGR) of around 5% projected over the medium term. While the sector faced significant disruptions during the COVID-19 pandemic, demand recovery has been robust, particularly in essential services such as healthcare, information technology, telecommunications, and data centers, where uninterrupted power supply remains mission-critical.

The revival of industrial and commercial activity, coupled with infrastructure expansion across Tier-II and Tier-III cities, has further supported demand for DG sets. The commercial and residential segments are expected to remain key growth drivers, supported by increasing urbanization, the rise of organized retail, and the need for reliable backup power in both business and household settings.

At the same time, the industry faces structural shifts as India accelerates its transition towards renewable energy and low-emission technologies. Compliance with the CPCB-IV+ emission norms is reshaping the market, encouraging innovation and adoption of cleaner, more efficient generator solutions. While this transition may pose short-term challenges in terms of cost and compliance, it also opens up long-term opportunities for differentiation and sustainable growth.

Looking ahead, growth in the manufacturing sector, driven by the Governments Make in India initiative and ambitions to establish India as a global manufacturing hub by 2030, is expected to significantly boost demand for reliable power backup solutions. Diesel generators will continue to play a vital role as both primary and standby power sources for industries that cannot afford downtime.

Further, technological advancements, including hybrid power systems, remote monitoring, and integration with renewable energy sources, are anticipated to strengthen the DG market by improving efficiency, reliability, and environmental performance.

Your Company remains well-positioned to capitalize on these developments. With a strong portfolio of products, a growing export footprint, and a focus on service excellence, we are committed to leveraging emerging opportunities while navigating the evolving regulatory and energy landscape.

India Diesel Generator Industry Segmentation

The Indian Diesel Generator (DG) industry is diverse and caters to a wide spectrum of applications across residential, commercial, industrial, and infrastructure sectors. The segmentation can be broadly classified as follows:

Sr No. Particulars	End Users
1. Types	• Portable generators
	• Inverter Generators
	• Industrial generators
	• Induction generators
2. Application	• Standby
	• Primer Power
	• Continuous
	• Peak Shaving
3. Purpose	• Residential
	• Commercial
	• Industrial
	• Infrastructure
4. Power Ratings	• Below 75 kVA
	• 75-375 kVA
	• 375-750 kVA
	• Above 750 kVA
5. By Region:	• North India
	• South India
	• East India
	• West India

BUSINESS OVERVIEW Business Overview

During FY 2024-25, the Company continued to strengthen its foothold in the diesel generator set (DG Set) market, driven by a combination of operational excellence, customer trust, and strategic growth initiatives. With Indias growing emphasis on infrastructure, industrial expansion, and uninterrupted power solutions, we remain well-placed to address diverse market requirements across residential, commercial, industrial, and export segments.

Our Strengths:

Sustained Expansion in the Diesel Generator Market: The Company has further broadened its operational reach, ensuring timely delivery of power solutions across multiple customer segments and geographies.

Consistent Performance: Our proven track record of execution and reliability continues to reinforce customer confidence and strengthen repeat business.

Technical and Execution Excellence: Leveraging our strong engineering expertise, compliance with the latest emission standards, and focus on high-quality solutions, we have successfully addressed evolving market needs.

Experienced Leadership: Our management team remains dedicated to driving innovation, strategic partnerships, and sustainable growth, ensuring the Company remains agile in a competitive and changing energy environment.

Competition: In FY 2024-25, competition in the DG set business has intensified, shaped by multiple factors including product capacity range, project location diversity, customer-specific customization, and pricing pressures.

While the Company continues to face challenges from well-established domestic and multinational players, regional competitors remain strong in localized markets where price competitiveness and distribution strength play a decisive role. The transition to CPCB-IV+ emission norms has also redefined the competitive landscape, with players who adapt faster to regulatory changes gaining a relative advantage.

Despite these challenges, the Company has retained its competitive position by:

• Strengthening customer-centric service models and after-sales support.

• Expanding its distribution network and export footprint.

• Emphasizing cost optimization and operational efficiency.

• Focusing on innovation in product design and compliance with evolving emission standards.

With these strategies, the Company remains confident of sustaining growth and safeguarding market share in an increasingly competitive environment.

RISKS, OPPORTUNITIES AND THREATS RISKS

1. Technological Transition and Customer Expectations

The pace of technological change, combined with evolving customer needs for more efficient and environmentally compliant solutions, continues to be a key risk. To address this, the Company is investing in R&D, digital monitoring capabilities, and advanced emission-compliant products to ensure alignment with industry trends and regulatory requirements.

2. Availability of Skilled Workforce

The shortage of skilled technical manpower remains a concern, particularly as demand for specialized expertise in new emission technologies and hybrid solutions increases. The Company is mitigating this risk by investing in structured training, employee retention initiatives, and partnerships with technical institutions.

3. Regulatory Compliance

The implementation of CPCB-IV+ norms and evolving energy policies require continuous adaptation. While compliance enhances product quality and sustainability, it also poses challenges in terms of cost structures and supply chain readiness.

OPPORTUNITIES

1. Government Policy Support

The Government of Indias continued thrust on Atmanirbhar Bharat and Production Linked Incentive (PLI) schemes for manufacturing present significant opportunities. These initiatives are designed to encourage domestic production, reduce import dependency, and build strong supply chains. The Company is strategically aligning operations to leverage these programs, strengthening its role in supporting national objectives.

2. Technological Advancements

The ongoing development of fuel-efficient, emission-compliant, and hybrid diesel generator sets offers opportunities to expand product offerings and capture new customer segments. The Company remains committed to embracing these innovations to enhance competitiveness and customer value.

3. Export Growth Potential

The demand for reliable and cost-effective power solutions in emerging global markets presents a strong growth opportunity. By expanding its international footprint, the Company is positioning itself to capture export-driven revenue streams.

4. Employment Generation and Community Impact

With Indias push for domestic manufacturing, the DG set sector is expected to create additional employment opportunities. The Company is proud to contribute to this positive economic impact, fostering skill development and job creation within local communities.

THREATS

1. Supply Chain Volatility

Global geopolitical uncertainty, fluctuations in commodity prices, and logistical challenges continue to affect the supply chain. The Company is adopting multi-sourcing strategies, vendor diversification, and inventory optimization to minimize disruptions.

2. Intensified Market Competition

The DG set industry has seen an influx of new entrants and aggressive expansion by existing players, both domestic and multinational. To counter this, the Company is focusing on innovation, customer centric service models, and operational efficiency to sustain its competitive edge.

3. Shift to Renewable Alternatives

The growing adoption of renewable energy and battery storage solutions represents a long-term structural threat. The Company is actively exploring hybrid models and alternative-fuel generators to align with this transition.

SIGNIFICANT DEVELOPMENTS AFTER MARCH 31, 2025 THAT MAY AFFECT FUTURE RESULTS OF OPERATIONS

Several developments after the close of the financial year may influence the Companys performance in FY 2025-26 and beyond:

• Regulatory Changes: Continued evolution of emission norms and environmental regulations necessitates timely compliance and adaptation in product design and manufacturing processes.

• Competitive Intensity: The entry of new players, coupled with strategic expansions by established competitors, has heightened market competition, requiring continuous innovation and differentiation.

• Implementation of Growth Plans: While the Company remains committed to its strategic growth roadmap, challenges relating to cost pressures and execution timelines may influence the pace of implementation.

• Economic and Business Environment: Global macroeconomic uncertainties, inflationary pressures, and fluctuating demand cycles have the potential to impact operational performance.

• Health and Safety Considerations: Company continues to prioritize employee safety, supply chain resilience, and business continuity planning in the face of evolving health and environmental risks.

DISCUSSION OF RESULT OF OPERATION

The results of our operations for the fiscal years 2024-2025 and 2023-2024 reflect the impact of various factors influencing our income and expenditure. The table below provides a detailed comparison of our operational results for the two fiscal years. Please note that fluctuations in our financial performance from period to period are a result of these diverse factors.

RESULTS OF OUR OPERATIONS AS PER FINANCIAL STATEMENTS

FINANCIAL REVIEW

Income Statement Summary MAKSs performance during FY 2024-25 reflected resilience amidst stable revenues and an increasingly competitive environment. The Company reported a total income of Rs.6,674.91 lakh, registering a marginal increase of 0.13% compared to Rs.6,666.41 lakh in FY 2023-24.

Despite the flat revenue trend, profitability improved significantly. Profit Before Tax (PBT) rose to Rs.73.74 lakh in FY 2024-25, an increase of 85.9% over Rs.39.67 lakh in the previous year. Similarly, Profit After Tax (PAT) nearly doubled to Rs.55.16 lakh, compared to Rs.28.18 lakh in FY 2023-24, reflecting a robust growth of 95.8%.

This strong improvement in bottom-line performance was primarily driven by effective cost management, improved operational efficiency, and disciplined financial practices, despite the impact of higher finance charges and lower other income.

Earnings per Share (EPS) also strengthened to Rs.0.80 in FY 2024-25, as against Rs.0.41 in FY 2023-24, in line with the improved profitability and enhanced shareholder value.

(Amount Rs. in Lakh)

Particulars	FY 2024-25	FY 2023-24	YoY % Change
Total Revenue	6,674.91	6,666.41	0.13%
Expenses	6,578.15	6,580.33	(0.03%)
EBITDA	293.95	234.45	25.39%
Other Income	26.75	40.43	(33.80%)
Finance Charges	217.49	191.98	13.27%
Depreciation & Amortisation	2.70	2.90	(6.21%)
Profit Before Tax (PBT)	73.74	39.67	85.86%
Tax Expenses	18.58	11.39	63.12%
Profit After Tax (PAT)	55.16	28.18	95.77%
EPS (Basic)	0.80	0.41	95.12%

KEY FINANCIAL RATIO CHANGES

Key financial ratios along with the details of significant changes (25% or more) in FY 24-2025 compared to FY23-2024 is as follows:

S. RATIO NO.	FY 2024-25	FY 2023-24	% CHANGE	DETAILS OF SIGNIFICANT CHANGES (IF >25%)
1 Current Ratio	1.81	1.88	-3.48%	No significant change
2 Debt Equity Ratio	1.02	0.95	7.88%	No significant change
3 Debt Service Coverage Ratio	1.56	1.44	8.22%	No significant change
4 Return on Equity Ratio	3.32%	1.74%	90.80%	Increase in profit along with no corresponding increase in average shareholders fund.
5 Inventory Turnover Ratio (in days)	66 days	79 days	-15.56%	No significant change
6 Trade Receivables Turnover Ratio (in days)	93 days	74 days	24.90%	Increase in average receivables led to higher receivable days.
7 Trade Payables Turnover Ratio (in days)	7 days	9 days	-16.84%	No significant change
8 Net Capital Turnover Ratio	4.28	4.32	-0.77%	No significant change
9 Net Profit Ratio	0.83%	0.43%	95.06%	Increase in profit comparatively higher than turnover during the current year.
10 Return on Capital Employed	9.20%	8.74%	5.29%	No significant change

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has in place an effective and reliable internal control system commensurate with the size and nature of its operations. These controls are designed to ensure orderly and efficient conduct of business, adherence to applicable statutory requirements, safeguarding of assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records, and timely preparation of reliable financial information.

The adequacy and effectiveness of the internal control systems are continuously monitored through periodic self-assessments, internal audits, and reviews by statutory auditors. The findings and recommendations are reviewed by the management to ensure that corrective measures are implemented in a timely manner, thereby strengthening the overall control environment.

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

Your Company continues to recognize that its people are its most valuable asset and the cornerstone of its success. The Company follows a policy of building strong teams of talented professionals and has maintained a sharp focus on employee engagement, development, and well-being.

The Human Resources framework is commensurate with the size, nature, and operations of the Company. Initiatives are undertaken on a continuous basis to enhance employee satisfaction and strengthen organizational capabilities.

As part of employee welfare measures, the Company provides health insurance coverage through a recognized insurance provider, M/s MD India Health Insurance TPA Private Limited, ensuring medical security and benefits to its employees and their families.

The industrial relations environment during the year remained cordial, with a culture of collaboration and mutual trust being fostered across all levels of the organization.

RISK MANAGEMENT

The Company has established a robust risk management framework designed to identify, assess, and mitigate various business risks that may affect its performance and sustainability. The framework ensures proactive monitoring and timely management of internal as well as external risks, thereby safeguarding the interests of stakeholders.

Key categories of risks identified and monitored by the Company include:

• Operational Risks: Continuous focus is maintained on improving operational efficiency, supply chain resilience, and quality control processes to minimize disruptions.

• Financial Risks: The Company regularly monitors liquidity, credit, interest rate, and foreign exchange exposures, ensuring prudent financial management and compliance with regulatory requirements.

• Compliance Risks: A structured compliance management system ensures adherence to applicable laws, regulations, and corporate governance standards.

• Strategic Risks: Regular evaluation of business strategies in light of changing market dynamics, competition, and customer expectations helps in aligning objectives with sustainable growth.

• Technology and Cybersecurity Risks: With increasing reliance on digital platforms, the Company has implemented appropriate IT controls, data protection policies, and cybersecurity measures.

The Board of Directors and the Audit Committee periodically review the risk management framework to ensure its adequacy and effectiveness. The Company remains committed to strengthening its risk management practices to support long-term growth and value creation.