Maxvolt Energy Industries Ltd Management Discussions

1.INDUSTRY STRUCTURE AND DEVELOPMENTS

1.1 Global Economic and Industry Environment

The global economy in FY 2025 26 remained affected by geopolitical tensions, trade uncertainty, commodity prices and changing monetary policies. The IMF projects global growth of 3.0% in 2026 and 3.4% in 2027, with inflation expected at 4.7% and 3.9%, respectively. Meanwhile, global battery demand continues to grow, driven by EV adoption and energy storage, with EV battery demand expected to exceed 3 TWh by 2030.

1.2 Indian Economic and Sectoral Environment

India continues to offer strong growth opportunities in electric mobility, battery manufacturing and energy storage. Government initiatives such as PM E-DRIVE and PLI schemes are supporting EV adoption and domestic battery manufacturing. Electric two- and three-wheelers are particularly important, with EVs accounting for nearly 10% of sales in 2024 and expected to exceed one-third by 2030 under the IEAs Stated Policies Scenario.

1.3 Industry Structure EV, Lithium-ion Battery, ESS and Circular Battery Economy

Indias battery ecosystem is expanding across battery-pack manufacturing, BMS, charging, energy storage and recycling. The Company manufactures customised battery solutions for EVs, ESS, solar, telecom, medical and industrial applications, with installed capacity of approximately 600 750 MWh and monthly capacity exceeding 14,000 packs. Its network includes 875+ dealers/distributors, 30+ OEM partnerships, 10+ warehouses and 8 service centres, covering over 1,300 pin codes.

1.4 Regional and Global Battery Manufacturing Developments

The Global battery manufacturing remains concentrated in China, which accounted for approximately 85% of global capacity in 2024. However, manufacturing is increasingly diversifying across India, the US, EU and other markets. Indias growing domestic battery capacity, coupled with rising EV and energy-storage demand, presents opportunities for the Company in battery packs, storage solutions, battery-management systems and recycling.

2.OPPORTUNITIES AND THREATS 2.1 Opportunities

The transition towards electric mobility, renewable-energy integration and energy storage continues to create medium- to long-term growth opportunities for the Company. Key opportunities include:

Growth in electric two- and three-wheelers, supporting demand for lithium-ion battery packs.

Expansion of Energy Storage Systems and customised battery solutions for industrial, renewable and grid applications.

Increasing OEM demand for customised, high-performance and safety-compliant battery packs.

Capacity expansion through automation and capital investment, along with strengthening of the nationwide dealer, distributor and OEM network.

Opportunities in export markets, including Southeast Asia, the Middle East and Africa.

Growth in battery recycling, reverse logistics, second-life applications and recovery of critical materials.

Development of AI-enabled Battery Management Systems, predictive analytics and battery lifecycle-management capabilities.

Increasing localisation of supply chains and demand for sustainable, technology-led products within the circular energy ecosystem.

2.2 Threats

The Company operates in a competitive and rapidly evolving industry and remains exposed to the following principal risks:

Volatility in the prices and availability of battery cells, electronic components and other critical inputs.

Supply-chain disruptions arising from geopolitical developments, trade restrictions or logistics constraints.

Increasing competition from domestic and international battery manufacturers, resulting in pricing and margin pressure.

Rapid technological changes that may affect the competitiveness of existing products.

Changes in EV incentives, safety standards, environmental requirements, recycling obligations, customs duties and other regulations.

Higher working-capital requirements due to expansion, inventory and receivables.

Foreign-exchange exposure arising from imported inputs, equipment and export transactions.

3.SEGMENT-WISE / PRODUCT-WISE PERFORMANCE

The Companys products are deployed across electric mobility and stationary/industrial energy applications. The Investor Presentation provides product/application-wise revenue information for FY 2025 26 and FY 2024 25 as set out below. These figures should be reconciled with the audited financial statements before publication.

Product / Application	FY 2025 26 Revenue ( Lakhs)	FY 2024 25 Revenue ( Lakhs)
E-Cycles	14.8	3.6
E-Scooters	21,694.6	8,760.9
E-Rickshaws	2,196.2	38.8
Energy Storage Systems	2,136.8	335.3
Battery Chargers	2,018.1	132.45
Others	1,617.45	763.77

During FY 2025 26, the Companys product portfolio recorded significant growth, particularly in electric-scooter batteries, electric-rickshaw batteries and Energy Storage Systems. The Company attributes its growth strategy to capacity expansion, OEM relationships, wider distribution, customised battery solutions and increasing demand for lithium-ion applications.

4.OUTLOOK

The Companys outlook remains focused on leveraging growth opportunities in electric mobility, Energy Storage Systems, renewable-energy applications and the circular battery economy. The Company plans to expand manufacturing capacity through automation and capital investment, strengthen R&D, broaden its product portfolio and deepen relationships with OEMs, dealers and distributors. The newly commissioned 55,000 sq. ft. manufacturing facility is expected to support increased production and expansion in Energy Storage Systems, including customised MW-scale solutions for industrial, renewable and grid applications.

The Company is also developing a battery recycling and critical-mineral recovery platform. Land has been allotted by the Uttar Pradesh MSME Department for a lithium battery recycling plant at Aligarh, with an initial planned capacity of approximately 7,800 MT per annum, scalable progressively towards approximately 25,000 MT per annum by 2035. The proposed Phase 2 is expected to focus on extraction and refining of nickel, cobalt, manganese and lithium, subject to development and execution. Technology remains a strategic priority, with collaborations and initiatives in AI-enabled BMS, smart BMS, advanced battery architectures, lifecycle assessment, digital battery traceability and recycling technologies.

5.RISKS AND CONCERNS

Raw Material and Input Cost Risk

Risk: The Companys manufacturing operations depend upon lithium-ion cells, electronic components and other inputs whose prices and availability may fluctuate. Changes in commodity prices, supplier pricing, freight costs and import-related costs may affect margins and working-capital requirements.

Mitigation: The Company seeks to diversify sourcing relationships, align procurement with product requirements and develop recycling/material-recovery capabilities to improve long-term resource resilience.

Supply Chain and Import Risk

Risk: Dependence on global suppliers and imported components exposes the Company to geopolitical events, logistics disruptions, trade restrictions, currency movements and changes in customs duties.

Mitigation: The Company has stated that it follows diversified global sourcing partnerships and seeks to reduce dependence on any single geography.

Technology Risk

Risk: Battery technology is rapidly evolving, including developments in battery chemistry, BMS, thermal management, charging and energy-storage architecture. Technological obsolescence may affect product competitiveness.

Mitigation: The Company maintains an active R&D roadmap covering AI-enabled BMS, smart BMS, advanced battery architecture, digital lifecycle tools and recycling technologies.

Regulatory and Compliance Risk

Risk: The Company is subject to evolving EV, battery safety, environmental, recycling and other regulatory requirements. Changes in applicable standards or policy incentives may affect product design, costs or market demand.

Mitigation: The Company maintains ISO 9001:2015 and AIS 156 certification and continues to develop capabilities aligned with battery lifecycle and recycling requirements.

Competition Risk

Risk: The battery industry is characterised by increasing competition from established domestic and international players, which may place pressure on pricing, market share, product innovation and margins.

Mitigation: The Companys stated competitive differentiators include customised solutions, a nationwide network, service turnaround, quality systems, R&D and circular-economy initiatives.

Working Capital and Liquidity Ris k

Risk: Rapid growth may increase requirements for inventory, trade receivables and other working capital. Expansion and capital expenditure may also increase financing requirements.

Mitigation: Management monitors working capital, financing arrangements and operating requirements. The final Annual Report should include managements specific assessment of liquidity and funding arrangements.

Foreign Exchange Risk

Risk: To the extent the Company imports cells/components or undertakes foreign-currency transactions, fluctuations in exchange rates may affect procurement costs and profitability.

Mitigation: The Company should disclose its approved foreign-exchange risk-management/hedging policy where material.

Customer / Supplier Concentration Risk

Risk: Dependence on a limited number of major customers or suppliers, if material, may increase business continuity and pricing risks.

Mitigation: The Company should monitor customer and supplier concentration and maintain a diversified OEM/ dealer and sourcing network.

6.INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company maintains an internal control framework commensurate with the size, scale and nature of its operations, designed to provide reasonable assurance regarding safeguarding of assets, prevention and detection of fraud and errors, accuracy of accounting records, reliability of financial reporting, operational efficiency and compliance with applicable laws and regulations.

The control framework covers procurement, inventory management, production, quality control, sales, receivables, payments, fixed assets, financial reporting, statutory compliance, information systems and other operational processes. With the expansion of manufacturing capacity and distribution network, the Company continues to strengthen the factors like process controls, authorisation mechanisms segregation of duties reconciliation procedures and management reporting.

During FY 2025 26, M/s. S. Yadav & Co. was appointed as the Internal Auditor of the Company. The internal audit was conducted periodically.

The internal audit reports and key observations were placed before the Audit Committee and Board of Directors for review. During the year, no material weaknesses, significant deficiencies were reported and appropriate corrective measures were implemented by the management.

The Audit Committee periodically reviews the adequacy and effectiveness of the Companys internal control framework, including the status of internal audit observations and corrective actions. Based on the reviews undertaken during the year, the management is of the view that the Companys internal financial controls over financial reporting were adequate and operating effectively / insert applicable management assessment. The Companys internal control framework is supported by appropriate accounting systems, MIS and approval mechanisms, and the Company continues to enhance its control environment in line with the scale and complexity of its operations.

7.DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The Companys financial performance during FY 2025 26 reflected significant growth in revenue and profitability, supported by expansion in battery sales, increased manufacturing capacity, strengthening of the dealer/distributor network and growth in OEM relationships.

Particulars	FY 2025 26	FY 2024 25	% Change
Revenue from Operations ( Lakhs)	29,676.48	10,746.62	176.1%
EBITDA ( Lakhs)	3,560.2	1,393.9	155.4%
EBITDA Margin	12.0%	13.0%
Profit Before Tax (Rs. Lakhs)	3,282.79	1,392.63	135.7%
Profit After Tax ( Lakhs)	2,438.47	1,011.68	140.9%
PAT Margin	8.2%	9.4%	14.63%
EPS ( )	22.36	11.69	91.28%

The Investor Presentation indicates that revenue from operations increased by approximately 176.1% to 29,676.48 lakh in FY 2025 26 from 10,746.62 lakh in FY 2024 25. EBITDA increased by approximately 155.4% to 3,560.2 lakh, while Profit After Tax increased by approximately 140.9% to 2,438.47 lakh. Operationally, the Company increased monthly production capacity to more than 14,000 battery packs, expanded its distribution footprint to more dealers/distributors, strengthened its OEM network and expanded manufacturing capacity through the newly commissioned 55,000 sq. ft. facility.

As at March 31, 2026, total assets stood at approximately 22,458.44 lakh compared with 9,552.63 lakh as at March 31, 2025. Inventories increased to 6,223.18 lakh from 1,995.22 lakh, trade receivables increased to 3,913.14 lakh from 3,080.10 lakh, and cash and cash equivalents increased to 2,586.45 lakh from 132.31 lakh.

Net cash generated from operating activities was negative 2,902.21 lakh during FY 2025 26 compared with negative 4,450.65 lakh during FY 2024 25. Cash flow from investing activities was negative 3,001.52 lakh, while cash flow from financing activities was positive 8,357.86 lakh. The net increase in cash and cash equivalents during the year was approximately 2,454.14 lakh.

8.MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS

Human resources remain an important component of the Companys growth strategy, particularly in view of the expansion of manufacturing capacity, R&D activities, sales and distribution operations, service infrastructure and technology initiatives.

The Companys Investor Presentation reports an employee strength of more than 217 persons as of FY 2025-26.The workforce supports manufacturing, R&D, product development, quality, sales and distribution, customer service, finance, human resources, marketing and other corporate functions.

The Companys R&D and product-development initiatives are supported by technical professionals, IIT graduates, PhDs and industry specialists. The Company continues to focus on capability development in battery technology, product safety, manufacturing, quality control, BMS, digital systems and recycling.

9.KEY FINANCIAL RATIOS

In accordance with the applicable requirements of SEBI LODR, the Company is required to disclose significant changes of 25% or more, as compared with the immediately preceding financial year, in specified key financial ratios, together with detailed explanations for such changes. The ratios should be obtained from the Finance/ CFO team and reconciled with the audited financial statements and statutory auditors workings.

Ratio	FY 2025 26	FY 2024 25	% Change	Detailed explanation where change is 25%
Debtors / Trade Receivables Turnover	8.49	5.75	47.51%	Increase primarily due to increase in revenue from operations, resulting in improved utilisation of trade receivables during the year.
Inventory Turnover	5.88	5.14	14.35%	-
Interest Coverage Ratio	10.45	12.06	-13.38%	-
Current Ratio	1.78	3.74	-52.42%	Decrease primarily due to a significant increase in current liabilities during the year, particularly borrowings and other working- capital related obligations, relative to current assets.
Debt Equity Ratio	0.82	0.04	1817.60%	Increase primarily due to a significant increase in debt during the year, mainly to fund the Companys increased working-capital requirements and business expansion.
Operating Profit Margin (%)	0.12	0.14	-13.43%
Net Profit Margin (%)	0.11	0.13	-14.64%
Return on Net Worth	0.23	0.15	58.57%	Increase primarily due to growth in profitability and improvement in the Companys earnings relative to its net worth during the year.

For every ratio showing a change of 25% or more, the explanation should identify the principal business, operational, financing, working-capital or accounting factors responsible for the movement and should be sufficiently specific to enable shareholders to understand the underlying change.

10.ADDITIONAL RATIOS IN COMPANY MD&A FORMAT

Ratio	FY 2025 26	FY 2024 25	% Change	Explanation
Debt Service Coverage Ratio	7.34	8.49	-13.55%	Decrease due to increase in debt servicing obligations during the year.
Return on Equity	0.23	0.15	58.57%	Increase primarily due to improvement in profitability during the year.
Trade Payables Turnover Ratio	24.78	9.33	165.54%	Increase primarily due to higher purchases/ consumption during the year and relatively lower average trade payables.
Net Capital Turnover Ratio	3.54	1.65	114.69%	Increase primarily due to higher revenue from operations and improved utilisation of net working capital during the year.
Return on Capital Employed	0.31	0.21	46.99%	Increase primarily due to improvement in operating profitability and better utilisation of capital employed during the year.

These additional ratios may be retained if they form part of the Companys established Annual Report format or are otherwise considered relevant. They should be calculated consistently with the prior-year methodology and audited financial information.

11.RETURN ON NET WORTH DETAILED EXPLANATION

The Return on Net Worth (RoNW) for FY 2025 26 was 0.23% as compared with 0.15% in FY 2024 25, representing a change of percentage points 58.57% on a year-on-year basis.

The movement in RoNW was primarily attributable to: change in profitability / increase in net worth / capital raising / retained earnings / change in borrowings / other relevant factors]. During FY 2025 26, Profit After Tax increased to 2,438.47 lakh from 1,011.68 lakh in the previous year, while total equity increased to 10,441.1 lakh from 6,861.3 lakh. The final explanation should be aligned with the Finance-approved RoNW calculation.

12.DISCLOSURE OF ACCOUNTING TREATMENT

The Companys financial statements have been prepared in accordance with the applicable accounting framework and the accounting policies disclosed in the financial statements.

If no treatment different from that prescribed under an applicable Accounting Standard / Ind AS has been followed, the following statement may be used, subject to confirmation by the CFO and statutory auditor:

During the year under review, there has been no material departure from the accounting treatment prescribed under the applicable Accounting Standards / Indian Accounting Standards in the preparation of the financial statements.

If any alternative accounting treatment has been followed, the final Annual Report must specifically identify the relevant Accounting Standard / Ind AS, describe the alternative treatment adopted, quantify its impact where required, and include managements explanation as to why such alternative treatment is considered more representative of the true and fair view of the underlying business transaction.

13.FORWARD-LOOKING STATEMENTS / CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations, plans or other forward-looking information may constitute forward-looking statements and are subject to risks and uncertainties. Actual results may differ materially from those expressed or implied due to factors including changes in economic conditions, industry demand, competition, raw-material prices, supply-chain conditions, technological developments, government policies, regulatory requirements, foreign-exchange movements and other factors affecting the Companys operations.

The Company undertakes no obligation to publicly update or revise any forward-looking statement except as may be required under applicable law. Forward-looking statements should be read in conjunction with the risks and uncertainties described elsewhere in the Annual Report.