Maxwell Engineering Solutions Ltd Management Discussions

MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL POSITION AND RESULTS OF OPERATIONS

You should read the following discussion in conjunction with our Restated Financial Information attached in the chapters titled "Restated Financial Information", "Risk Factors" & "Forward Looking Statements" on Page 242,20,18 of this Red Herring Prospectus, which discusses a number of factors and contingencies that could affect our financial condition and results of operations. The following discussion relates to us, and, unless otherwise stated or the context requires otherwise, is based on our Restated Financial Statements. Our financial statements have been prepared in accordance with Indian GAAP, the Companies Act and the SEBI (ICDR) Regulations and restated as described in the report of our auditor dated July 03, 2026, which is included in this Red Herring Prospectus under "Restated Financial Information". Our financial year ends on March 31 of each year, and all references to a particular financial year are to the twelve-month period ended March 31 of that year.

BUSINESS OVERVIEW

Our Company is a precision engineering company engaged in the business of manufacturing, trading and servicing of critical components for underwater pelletizing systems. Our company manufactures pelletizing die plates, pelletizing blades/knives, blade holders/cutter hub, tapped driving bush for underwater pelletizing systems and other spare items. To support our future growth and enhance our manufacturing capabilities, we commenced operations at our company-owned manufacturing facility situated at Plot Nos. 939 & 940, Waghodia GIDC, Vaghodia, Vadodara, Gujarat with effect from July 01, 2025 and have gradually transitioned manufacturing operations from our earlier leased facility situated at Makarpura, Vadodara. This expansion is expected to strengthen our production capabilities, improve operational efficiencies and progressively reduce our dependence on trading activities. We also undertake customized manufacturing based on customer specifications and offer our products on a white-label basis, enabling customers to market such products under their own brands while leveraging our manufacturing expertise. Our Company has entered into agreements with selected job workers to carry out specific processes related to its manufacturing operations. Under these arrangements, our Company supplies the required raw materials, while the job workers undertake operations such as machining, fabrication, welding, painting and other ancillary activities.

We also offer services, including refurbishing & repair services, intermediary support & management consulting. Our refurbishment services for used die plates help customers significantly reduce costs while improving product efficiency. Additionally, we act as an intermediary between CJTEK and third parties for the marketing and supply of CJTEK components. We also provide management consulting services for identifying and developing new customer relationships. We also represent CJTEK in exhibitions and market its product.

We also undertake selective trading of complementary components such as blades/knives, driving bushes, blade holders and related items to meet customer requirements and provide comprehensive solutions

Our manufacturing facility is equipped with modern precision machining equipment and in-house testing facilities to support the manufacture of high-quality precision-engineered components. Our products cater to applications across polymer compounding, masterbatches, engineering plastics, cable compounds, specialty polymers and plastics recycling industries.

Our Manufacturing facility are equipped with requisite machineries like VMC, CNC, Furnace Machine, Milling Machine, Wire cuts Machine, EDM Machine, Lathe Machine, Surface grinders Machine and other machines tools to manufacture precision engineering components and in-house testing system to keep a constant check on quality of our product. We have expanded globally, serving the customers spread over the countries like the USA, Germany, Netherland, Israel, Saudi Arabia, Oman, Indonesia, Japan, Luxembourg, Vietnam, Italy, Switzerland, Austria, South Africa, Australia, Thailand, etc. Our product includes the die plates for various applications like white, black, filler, additives, color masterbatches, cable compounds like HFFR, semiconductive, PVC, XLPE, HDPE blends, fluoropolymers like PFA, FEP, and PVDF, engineering compounds like BS, PA, PBT,PC, and PE, TPR, TPU, TPV, PET/PA resin productions, post-consumer and post-industrial recycling of ET, PP, PE, PVC, and many more applications.

Our company began its operations in 2022 under the brand name "Maxwell," foun ded by our promoters, Mr. Rajkumar Chaudhary and Mr. Vinubhai Kanjibhai Chavda. They have a combined experience of over 22 years in the underwater pelletizing systems industry. Their extensive industry knowledge and strategic leadership contribute significantly to the growth and development of our Company. Additionally, we are supported by an experienced technical, production and sales team.

Our Company is certified with ISO 9001:2015 for manufacturing and Supply of Die Plates/Heads, Pelletizing Blades/Knives, Blade Holders, Tapped Driving Bushes, which reflects our commitment to ensuring that we maintain quality standards across all operations. Further strengthening our commitment to quality and sustainable manufacturing, our Company was awarded the ZED Bronze Certification under the MSME Sustainable (ZED) Certification Scheme on November 28, 2025.

Key Performance Indicators of our Company

(Rs. in Lakhs except percentages and ratios)

Particulars	For the period ended July 31,2026*	FY 2025-26	FY 2024-25	FY 2023-24
Revenue from operations (1)	1,187.51	2944.83	2209.98	1054.33
Growth in Revenue from Operations (2)	-	33.25%	109.61%	1264.41%
EBITDA(3)	428.75	1518.97	1,169.15	425.11
EBITDA (%) Margin(4)	36.11%	51.58%	52.90%	40.32%
PAT(5)	305.21	1,186.17	917.57	316.14
PAT Margin(6)	25.70%	40.28%	41.52%	29.98%
Net Worth(7)	2,792.11	2486.90	1,300.73	333.14
ROCE%(8)	9.87%	38.46%	53.31%	62.96%
Current Ratio (9) ROE(10)	1.71	1.91	2.75	1.54
	11.56%	62.63%	112.32%	180.58%
EPS(11)	3.04	11.80	9.17	3.16

Notes:

1. Revenue from operations is the total revenue generated by our Company.

2. Growth in Revenue in percentage, Year on Year

3. EBITDA is calculated as Profit before tax + Depreciation + Finance Costs- Other Income

4. EBITDA Margin is calculated as EBITDA divided by Revenue from Operations

5. PA T is mentioned as PA T for the period.

6. PAT Margin = PAT/ Revenue from Operations.

7. Net Worth = Share capital + Reserves & Surplus.

8. ROCE: Return on Capital Employed is calculated as EBIT divided by capital employed, which is defined as Tangible Net Worth + Total Debt + Deferred Tax Liability

9. Current Ratio: Current Assets over Current Liabilities

10. ROE is calculated PA T divided by average shareholders equity

11. EPS is mentioned as EPS for the period

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

For details in respect of "Significant Accounting Policies", please refer to Note 1 of "Restated Financial Information" beginning on Page 242 of this Red Herring Prospectus.

Factors Affecting our Results of Operations

1. Our business is directly linked to the global demand for polyolefins, recycling solutions, polymer processing and etc. industries, which influence orders for our components.

2. Volatility in raw material prices, particularly steel, carbide and brazing fillers, may impact our gross margins and profitability.

3. Foreign exchange fluctuations, given significant export sales, may affect our financial performance.

4. Regulatory changes relating to compounding, masterbatches, recycling, petrochemicals, bioplastics, environmental standards or trade/export incentives may impact our operations.

5. Adverse outcomes in ongoing or potential legal proceedings may affect our business.

6. Other macroeconomic and geopolitical factors beyond our control, such as global trade restrictions or supply chain disruptions.

7. Other factors beyond our control.

Discussion on Result of Operations

The following discussion on results of operations should be read in conjunction with the Restated Financial Statements for the year ended March 31, 2026, March 31, 2025, and March 31, 2024.

									(fin Lakhs)
				STATEMENT OF PROFIT & LOSS
Particulars	31 July 2026	% of Total Income		31 March 2026	% of Total Income	31 March 2025	% of Total Income	31 March 2024 2024	% of Total Income
Revenue from Operations	1,187.51	96.97%		2,944.83	95.75%	2209.98	97.82%	1054.33	97.03%
Other Income	37.12	3.03%		130.84	4.25%	49.16	2.18%	32.23	2.97%
Total Income	1,224.63	100.00%		3075.68	100.00%	2259.13	100.00%	1086.56	100.00%
Expenses
Cost of Material Consumed	51.77	4.23%		446.82	14.53%	163.27	7.23%	112.26	10.33%
Purchases of Stock in Trade	203.32	16.60%	377.91		12.29%	306.59	13.57%	133.43	12.28%
Change in Inventories of work in progress and finished goods	26.22	2.14%	-446.55		-14.52%	-97.03	-4.30%	-8.46	-0.78%
Employee Benefit Expenses	242.85	19.83%	521.71		16.96%	291.60	12.91%	223.46	20.57%
Finance Costs	45.64	3.73%	106.99		3.48%	34.18	1.51%	21.86	2.01%
Depreciation and Amortization Expenses	53.90	4.40%	103.17		3.35%	78.53	3.48%	52.93	4.87%
Other Expenses	234.60	19.16%	525.98		17.10%	376.40	16.66%	168.54	15.51%
Total expenses	858.29	70.09%	1636.03		53.19%	1153.54	51.06%	704.01	64.79%
Profit/(Loss) before Tax	366.34	29.91%	1439.65		46.81%	1105.60	48.94%	382.55	35.21%
Tax Expenses
- Current Tax	52.87	4.32%	220.39		7.17%	196.64	8.70%	68.42	6.30%
- Deferred Tax	8.25	0.67%	33.09		1.08%	-8.61	-0.38%	-1.91	-0.18%
- Prior Period Taxes	-		-		-	-	-	-0.10	-0.01%
Total Tax Expenses	61.12	5.00%	253.48		8.25%	188.03	8.32%	66.41	6.11%
Profit/(Loss) after Tax	305.21	24.92%	1186.17		38.57%	917.57	40.62%	316.14	29.10%
Profit attributable to Minority holders	-	-	-		-	-	-	-	-
Profit attributable to owner of the group	305.21	24.92%	1186.17		38.57%	917.57	40.62%	316.14	29.10%

Over the past three fiscal years, our company has achieved consistent growth in revenue and profitability, supported by increasing demand for our products and services and the expansion of our customer base across domestic and international markets. Revenue growth has been driven by higher volumes, timely delivery and sustained customer satisfaction and, consequently, higher sales. The increase in profitability is further supported by the companys increased focus on refurbishing services alongside manufacturing. Refurbishing extends the lifecycle of components and provides customers with value-driven solutions, contributing to improved cost efficiency and healthy profit margins.

Revenue from operations:

The companys revenue from operations primarily comprises the manufacturing and sale of die head plates, blade holders, blades, and driving bushes. In addition to manufacturing, the company is also engaged in limited trading activities involving blades/knives, driving bush, blade holders, and related items. Furthermore, the company has expanded its operations resultantly increase in refurbishing & repair services, intermediary support & management consulting.

Other Incomes

Other income primarily comprises of Interest Income on FD, Exchange Fluctuation Gain, Export incentives and Miscellaneous income.

Total Expenses:

Total expenses consist of operating cost like Cost of Material consumed, Purchases of Stock in Trade, Change in Inventories of work in progress and finished goods, Employee benefits expense, Finance costs, Depreciation and amortization expenses and other expenses.

Cost of Material consumed

Cost of Material consumed expenses primarily comprise of Raw material consumption.

Purchases of Stock in Trade

Change in inventories of stock in trade comprises of increase/ (decrease) in stock in trade.

Change in Inventories of work in progress and finished goods

Change in inventories of work in progress and finished goods comprises of increase/ (decrease) in work in progress and finished goods

Employee benefits expense:

Employee benefits expense primarily comprises of salaries and wages, Remuneration to directors, Expenses related to ESIC and other, Contribution to PF & Other Funds, Gratuity Expenses, Leave Encashment, and Staff welfare expenses.

Finance Costs:

Our Finance cost includes Interest expenses and Bank charges, Processing fees and Credit Card Financial Charges.

Depreciation and Amortization Expenses:

Depreciation and Amortization Expenses includes depreciation on Factory Building, Plant and Machinery, Furniture and Fixture, Vehicles (Cars), Mobiles, Electrical Equipment, Computers, Office and factory Equipment, and software.

Other Expenses:

Other Expenses consists of Expenses Auditors Remuneration, Advertisement, Commission, Conveyance expenses, Freight Inward, Insurance, Manufacturing Expenses comprises Cutting Charges-Electricity Expenses-Job Work Expenses-Technical Testing & Analysis Charges-Power and fuel, Professional fees, Rent, Repairs to machinery, Repairs others, Rates and taxes, Selling & Distribution Expenses, Telephone expenses, Travelling Expenses, Clearing & Forwarding Charges, Crane Hiring Charges, Cylinder Charges, Donation, Inspection/Certification Charges, Internet Expenses, Membership Expenses, Office Expenses, Postage & Courier Expenses, Printing & Stationery Expenses, Security Service Charges, Software Renewal Charges, Website Domain Charges, Miscellaneous expenses.

For the Period ended July 31, 2026 (Based on Restated Financial Statements)

Total Income:

Total income for the period ending July 31, 2026 stood at t 1,224.63 lakhs.

Revenue from Operations:

During the period ending July 31, 2026, revenue from operations stood at t 1,187.51 lakhs.

Other Income:

During the period ending July 31, 2026, other income was Rs 37.12 lakhs.

Total Expenses:

The Total Expenses for the period ending July 31, 2026 stood at t 858.29 Lakhs.

Cost of Material Consumed:

During the period ending July 31, 2026, cost of material consumed stood at t 51.77 lakhs.

Purchases of Stock in Trade

During the period ending July 31, 2026, Purchases of Stock in Trade stood at t 203.32 lakhs.

Changes in inventories of finished goods, WIP & Stock-in-trade:

During the period ending July 31, 2026, there was a change in inventory of t 26.22 lakhs.

Employee benefit expenses:

Our Company has incurred t 242.85 lakhs as employee benefit expenses for the period ending July 31, 2026.

Finance costs:

Finance costs for the period ending July 31, 2026 was t 45.64 lakhs.\

Depreciation and Amortization Expenses:

Depreciation for the period ending July 31, 2026 was t 53.90 lakhs.

Other Expenses:

Other Expenses for the period ending July 31, 2026 stood at t234.60 lakhs.

Restated Profit before tax:

The Company reported Restated profit before tax for the period ending July 31, 2026 of Rs. 366.34 lakhs.

Restated profit after tax:

The Company reported Restated profit after tax for the period ending July 31, 2026 of Rs. 305.21 lakhs.

FISCAL 2026 COMPARED TO FISCAL 2025

Total Income:

Total income for the fiscal 2026 stood at Rs.3,075.68 lakhs as compared to Rs.2,259.13 lakhs in the fiscal 2025, representing an increase of 36.14%.

The increase in total income was primarily attributable to higher revenue from operations driven by growth in manufacturing activities, increased export sales, expansion of customer relationships across domestic and international markets, and higher refurbishment and allied service income. The Company also benefited from increased production capacity and operational efficiencies arising from investments in its new manufacturing facility.

Revenue from Operations

Revenue from operations increased to Rs.2,944.83 lakhs in financial year 2025-26 from Rs.2,209.98 lakhs in financial year 2024-25, representing a growth of 33.25%.

The growth was primarily driven by:-

• Increased demand for pelletizing die plates, blades/knives, blade holders and related components;

• Higher export sales across key international markets;

• Growth in refurbishment and repair services;

• Improved customer retention resulting in repeat orders;

• Enhanced production capability following expansion of manufacturing infrastructure.

Other Income:

Other income increased to Rs.130.84 lakhs during fiscal 2026 from Rs.49.16 lakhs during fiscal 2025, representing an increase of 166.15%.

This is Increase was Primarily driven by the following factors:

The increase was primarily attributable to higher export incentives, foreign exchange gains arising from export transactions, increased interest income on deposits and other miscellaneous operational receipts.

Interest Income increased to Rs.11.38 lakhs in fiscal 2026 from Rs.9.68 lakhs in FY 2024-25, reflecting higher interest earned on fixed deposits and improved cash Flow management. Export Incentive-Duty Drawback rose significantly to Rs.29.87 lakhs from Rs.20.25 lakhs in the previous year, driven by an increase in eligible export volumes and timely realization of Claims. Export Incentive - RODTEP stood at Rs.3.72 lakhs, compared to Rs.3.70 lakhs in fiscal 2025. Foreign Exchange gain increased to Rs.85.38 lakhs from Rs.15.54 lakhs in fiscal 2025, Owing to Favourable currency Fluctuations and Efficient Forex Exposure management.

Total Expenses

Total expenses increased to Rs.1,636.03 lakhs during fiscal 2026 from Rs.1,153.54 lakhs during fiscal 2025, representing an increase of 41.83%.

Cost of Material Consumed

Cost of material consumed increased to Rs.446.82 lakhs in fiscal 2026 from Rs.163.27 lakhs in fiscal 2025, representing an increase of 173.67%.

The increase was primarily due to higher production activity, increased consumption of raw materials and greater manufacturing contribution in the overall revenue mix.

Purchases of Stock in Trade

Purchases of stock in trade increased to Rs.377.91 lakhs in fiscal 2026 from Rs.306.59 lakhs in fiscal 2025, representing an increase of 23.26%.

The increase was mainly due to higher procurement of traded products to meet customer requirements and support growing order volumes.

This increase was attributable to expansion in trading activities undertaken to meet enhanced customer demand. Showing the Companys ability to cater wider market requirements and strengthen customer relationships.

Change in Inventories of Work in Progress and Finished Goods

Change in inventories of work-in-progress and finished goods stood at Rs.(446.55) lakhs during fiscal 2026 compared to Rs.(97.03) lakhs during fiscal 2025.

The larger negative balance reflects a substantial increase in closing inventories resulting from increased production levels, capacity expansion and inventory build-up to support future customer orders and export demand.

Such Negative change reflects an increase in Closing Stock maintained to fulfil higher anticipated orders and to ensure uninterrupted operations, which highlights the companys proactive approach in preparing for future demand and supporting sustained growth.

Employee Benefit Expenses

Employee benefit expenses increased to Rs.521.71 lakhs during fiscal 2026 from Rs.291.60 lakhs during fiscal 2025, representing an increase of 78.91%.

The increase was primarily due to:

(i) Expansion of the workforce to support increased manufacturing capacity and business operations;

(ii) Increase in managerial and technical personnel;

(iii) Higher salaries, wages, incentives and employee welfare expenses; and

(iv) Increased statutory contributions including provident fund, ESIC and gratuity provisions.

This increase was primarily due to:

(i) Higher Salary & wages of Rs.293.67 lakhs for fiscal 2026 as compared to Rs.172.24 lakhs for fiscal 2025 representing an increase of 70.50%;

(ii) increased Director Remuneration of Rs.121.80 lakhs as compared to Rs.60.05 lakhs remunerations for fiscal 2025. Representing an increase of 102.83%;

(iii) provident fund and ESIC contribution increased due to higher staff strength and wages and

(iv) Other Staff Welfare Expenses such as Leave salary, Bonus, festival, Mediclaim and Ex -Gratia payments increased reflecting improved HR policies and larger workforce. This rise reflects the Companys investment in expanding its work force and strengthening human capital, which is critical to sustaining operational excellence and supporting business growth.

Finance Costs

Finance costs increased to Rs.106.99 lakhs in fiscal 2026 from Rs.34.18 lakhs in fiscal 2025, representing an increase of 213.0 2%.

The increase was mainly on account of increased Term Loans for Property and Term Loan for Plant & machineries incurred to support expanding business operations and new Business loan. This reflects the Companys strategic use of financing to facilitate growth, strengthen infrastructure and meet raising Operational Requirements.

Depreciation and Amortization Expenses

Depreciation and amortization expenses increased to Rs.103.17 lakhs in fiscal 2026 from Rs.78.53 lakhs in fiscal 2025, representing an increase of 31.38%.

The Increase was primarily on account of addition of new plant and machinery and other Fixed assets capitalised during the year. The rise underscores the Companys Continued Investment in Modernizing and expanding its Production capacity, thereby enhancing efficiency and supporting long term sustainable growth.

During FY 2025-26, the Company has changed its method of providing depreciation on fixed assets from the Written Down Value (WDV) method to the Straight-Line Method (SLM). In accordance with Accounting Standard (AS) 5 "Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies" read with AS 10 "Accounting for Fixed Assets," a change in the method of depreciation is treated as a change in accounting estimate and not a change in accounting policy. Accordingly, this change does not require restatement of the financial statements of prior periods.

The impact of changing the method from WDV to SLM has led to decrease in depreciation expense and increase in profit before tax by Rs. 179.97 Lakhs for FY 2025-26 as per the details mentioned below:

		(Rs. in Lakhs)
Particulars	As per SLM	As per WDV
Depreciation	103.17	283.14
Profit before tax	1,439.65	1,259.68

Other Expenses

Other expenses increased to Rs.525.98 lakhs in fiscal 2026 from Rs.376.40 lakhs in fiscal 2025, representing an increase of 39.74%.

Other Expenses consists of Expenses Auditors Remuneration, Advertisement, Commission, Conveyance expenses, Freight Inward, Insurance, Manufacturing Expenses comprises Cutting Charges- -Electricity Expenses-Job Work Expenses-Technical Testing & Analysis Charges-Power and fuel, Professional fees, Rent, Repairs to machinery, Repairs others, Rates and taxes, Selling & Distribution Expenses, Telephone expenses, Travelling Expenses, Clearing & Forwarding Charges, Crane Hiring Charges, , Inspection/Certification Charges, Internet Expenses, Membership Expenses, Office Expenses, Postage & Courier Expenses, Printing & Stationery Expenses, Security Service Charges, Software Renewal Charges, Website Domain Charges, Miscellaneous expenses

The increase was primarily due to:

• Increase in conveyance expense

• Increase in freight, logistics and export-related expenses;

• Increase in Contract Labour charges

• Increase in power consumption and fuel consumption At Expansion location; Power consumption increased due to increased Capacity & fuel Consumption increased due to Increase commute distance at new Location.

• Increase in water charges

• Increase in Professional Fees

• Additional rent cost on Hiring of Transport Vehicle For employees, at the New Location.

• Higher professional fees, certification and compliance costs;

• Increase in Security Service Charges

• Increase in Software Renewal Charges

• Increase in Website Domain Charges and

• Other administrative and operational expenses associated with expanded business activities.

There was an increase mainly due to Increase in Postage & Courier expenses on account of higher dispatch activity and enhanced documentation associated with growing export and domestic sales, reflecting the Companys expanding customer base and strengthened business volumes,, increase in professional fees mainly due to engagement of additional consultants , electricity expense, office expense, and other expenses including Freight Inward, Insurance, Technical Testing, Printing & Stationery, Security Charges, etc.

Restated Profit before tax:

Profit before tax increased to Rs.1,439.65 lakhs during fiscal 2026 from Rs.1,105.60 lakhs during fiscal 2025, representing an in crease of 30.21%.

The increase in profit before tax was primarily attributable to higher revenue generation, improved manufacturing scale, growing export contribution and better absorption of fixed costs despite increases in finance costs.

The main Reason for increase in PBT margin is due to various factors as under:

Key drivers of the PBT expansion:

Scale-up in Revenue from operations: The increase in revenue that, ultimately cause to higher profit volume, is attributed to higher customer satisfaction, driven by the companys consistent delivery of quality products on time. This has resulted in a growing customer base and, consequently, higher sales and rise in PBT. Revenue from operations rose from Rs.2209.98 lakhs (Fiscal 2025) to Rs.2944.83 lakhs (Fiscal 2026), Rs.1,054.33 lakhs (Fiscal 2024) to Rs.2,209.98 lakhs (Fiscal 2025), on the back of stronger demand and timely delivery performance.

Higher refurbishing Die plates: companys increased focus on refurbishing machinery parts starting. Refurbishing requires less material compared to manufacturing new parts, which has led to improved cost efficiency and Gross Contribution towards Profit.

Improved product/service mix: Higher contribution from die head plates, blades/blade holders, supported by limited trading and consulting/export-commission activities.

Operating leverage and cost control: Several fixed and semi-variable cost lines (e.g., employee benefits, certain other expenses) did not rise in proportion to revenue, and process discipline.

Other income support: Growth in export incentives and forex gain supplemented operating profitability.

Restated profit after tax:

Profit after tax increased to Rs.1,186.17 lakhs during fiscal 2026 from Rs.917.57 lakhs during fiscal 2025, representing an increase of 29.27%.

PAT margin remained strong at 40.28% during fiscal 2026 as compared to 41.52% during fiscal 2025. The Company continued to benefit from operational efficiencies, higher value-added products, refurbishment activities and export-oriented business despite increased depreciation and finance costs arising from expansion investments.

Across the last three fiscals, growth in revenue and PAT margin has been driven by consistent quality and on time delivery (customer retention and repeat business), a rising refurbishing contribution (material efficient), and process/ Overhead discipline -together yielding stronger operating leverage and profitability.

Key drivers of the Profit expansion:

Scale-up in Revenue from operations: The increase in revenue that, ultimately cause to higher profit volume, is attributed to higher customer satisfaction, driven by the companys consistent delivery of quality products on time. This has resulted in a growing customer base and, consequently, higher sales and rise in PBT Revenue from operations rose from Rs.2209.98 Lakhs (Fiscal 2025) to Rs.2944.83 lakhs (Fiscal 2026) on the back of stronger demand and timely delivery performance.

Higher refurbishing Die plates: companys increased focus on refurbishing machinery parts starting. Refurbishing requires less material compared to manufacturing new parts, which has led to improved cost efficiency and Gross Contribution towards Profit.

Improved product/service mix: Higher contribution from die head plates, blades/blade holders, supported by limited trading and consulting/export-commission activities.

Operating leverage and cost control: Several fixed and semi-variable cost lines (e.g., employee benefits, certain other expenses) did not rise in proportion to revenue, aided by selective job-work and process discipline.

Other income support: Growth in export incentives and forex gain supplemented operating profitability

FISCAL 2025 COMPARED TO FISCAL 2024

Total Income:

Total income for the fiscal 2025 stood at Rs.2259.13 lakhs whereas in fiscal 2024 the same stood at Rs.1086.56 lakhs representing an increase of 107.92% due to the factors described below:

Revenue from Operations

During the fiscal 2025 the net revenue from the operation of our Company increased to Rs.2209.98 lakhs as against Rs.

1054.33 lakhs in the fiscal 2024 representing an increase of 109.61%. The main reason of increase was increase in the volume of business operations of the company.

Other Income:

During the fiscal 2025, the Other Income of our Company increased to Rs.49.16 lakhs as compared to Rs.32.23 lakhs in the fiscal 2024, representing a growth of approximately 52.53%.

This increase was primarily driven by the following factors:

Interest Income increased to Rs.9.68 lakhs in Fiscal 2025 from Rs.6.38 lakhs in Fiscal 2024, reflecting higher interest earned on fixed deposits and improved cash flow management. Export Incentive - Duty Drawback rose significantly to Rs.20.25 lakhs from Rs.9.53 lakhs in the previous year, driven by an increase in eligible export volumes and timely realization of claims. Export Incentive -

RODTEP stood at Rs.3.70 lakhs, compared to Rs.4.30 lakhs in Fiscal 2024. The marginal decrease is due to changes in applicable RODTEP rates and product classifications. Foreign Exchange Gain increased to Rs.15.54 lakhs in Fiscal 2025 from Rs.12.02 lakhs in Fiscal 2024, owing to favorable currency fluctuations and efficient forex exposure management.

Total Expenses

The total expense for the Fiscal 2025 increased to Rs.1153.54 lakhs from Rs.704.01 lakhs in the Fiscal 2024 representing an increase of 63.85%. Such an increase was due to increased volume of business operations and expansion activities undertaken by the Company.

Cost of Material Consumed

The cost of material consumed for the Fiscal 2025 increased to Rs.163.27 lakhs from Rs.112.26 lakhs in the Fiscal 2024 representing an increase of 45.44%. This increase was due to higher procurement and consumption of raw materials necessitated by increased production requirements, reflecting the Companys increasing purchase order and growth in operational sector.

Purchases of Stock in Trade

Purchases of stock in trade for the Fiscal 2025 increased to Rs.306.59 lakhs from Rs.133.43 lakhs in the Fiscal 2024 representing an increase of 129.78%. This increase was attributable to expansion in trading activities undertaken to meet enhanced customer demand, showcasing the Companys ability to cater wider market requirements and strengthen customer relationships.

Change in Inventories of Work in Progress and Finished Goods

Change in inventories for the Fiscal 2025 stood at Rs.(97.03) lakhs compared to Rs.(8.46) lakhs in the Fiscal 2024. Such change reflects an increase in closing stock maintained to fulfill higher anticipated orders and to ensure uninterrupted operations, which highlights the Companys proactive approach in preparing for future demand and supporting sustained growth.

Employee Benefit Expenses

Employee benefit expenses during the Fiscal 2025 stood at Rs.291.60 lakhs as compared to Rs.223.46 lakhs in the Fiscal 2024 representing an increase of 30.49%. This increase was primarily due to (i) higher salaries and wages of Rs.172.24 lakhs for Fiscal 2025 as compared to Rs.141.59 lakhs for Fiscal 2024 representing an increase of 21.65%, (ii) increased director remuneration of Rs.60.05 lakhs for Fiscal 2025 as compared to Rs.43.01 lakhs for Fiscal 2024 representing an increase of 39.62%, (iii) provident fund and ESIC contribution increased due to higher staff strength and wages, and (iv) other staff welfare expenses such as leave salary, bonus, festival, Mediclaim and ex-gratia payments increased reflecting improved HR policies and larger workforce. This rise reflects the Companys investment in expanding its workforce and strengthening human capital, which is critical to sustaining operational excellence and supporting business growth.

Finance Costs

Our Company has incurred Rs.34.18 lakhs as finance costs during the Fiscal 2025 as compared to Rs.21.86 lakhs in the Fiscal 2024 reflecting an increase of 56.36%. The increase was primarily on account of increased Term Loans for Property & term loans for Plant & Machineries incurred to support the expanding business operations. This reflects the Companys strategic use of financing to facilitate growth, strengthen infrastructure and meet rising operational requirements.

Depreciation and Amortization Expenses

Depreciation for the Fiscal 2025 stood at Rs.78.53 lakhs as against Rs.52.93 lakhs during the Fiscal 2024, representing an increase of 48.37%. The increase was mainly due to the addition of new plant and machinery and other fixed assets capitalized during the year. This rise underscores the Companys continued investment in modernizing and expanding its production capacity, thereby enhancing efficiency and supporting long-term sustainable growth.

Other Expenses

Our Company has incurred Rs.376.40 lakhs during the Fiscal 2025 on other expenses as against Rs.168.54 lakhs during the Fiscal 2024. There was an increase of 123.33% mainly due to increase in Postage & Courier expenses on account of higher dispatch activity and enhanced documentation associated with growing export and domestic sales, reflecting the Companys expanding customer base and strengthened business volumes, increase in job work expenses due to increase in purchase order which leads to more outsourcing of manufacturing activities to support larger production volumes and timely fulfilment of orders, increase in professional fees mainly due to engagement of additional consultants, increase in travelling expenses (Domestic & Foreign) due to growing business development activities, client visits, and vendor/supplier evaluations, increase in Repairs & Maintenance of Machineries due to increased machine utilization in line with greater production volumes and increase in rent expense, electricity expense, office expense, marketing expense (Exhibitions, etc) and other expenses including Freight Inward, Insurance, Technical Testing, Printing & Stationery, Security Charges, etc.

Restated Profit before tax:

Our profit before tax for the Fiscal 2025 increased by 189.01% from Rs.382.55 lakhs in the Fiscal 2024 to net profit of 1105.60 lakhs in Fiscal 2025. Consequently, our PBT Margin expanded to 50.03% in Fiscal 2025 (Fiscal 2024: 36.28%). The main reason for increase in PBT margin is due to various factors as under:

Restated profit after tax:

As a result of the above factors, our profit after tax increased by 190.24% from Rs.316.14 lakhs in Fiscal 2024 to Rs.917.57 lakhs in Fiscal 2025. Consequently, our PAT margin expanded to 41.52% in Fiscal 2025 from 29.98% in the Fiscal 2024.

Across the last three fiscals, growth in revenue and PAT margins has been driven by consistent quality and on-time delivery (customer retention and repeat business), a rising refurbishing contribution (material-efficient), and process/overhead discipline, together yielding stronger operating leverage and profitability.

Key drivers of the Profit expansion:

Scale-up in Revenue from operations: The increase in revenue that, ultimately cause to higher profit volume, is attributed to higher customer satisfaction, driven by the companys consistent delivery of quality products on time. This has resulted in a growing customer base and, consequently, higher sales and rise in PBT Revenue from operations rose from Rs.1,054.33 lakhs (Fiscal 2024) to Rs.2,209.98 lakhs (Fiscal 2025), on the back of stronger demand and timely delivery performance.

Higher refurbishing Die plates: companys increased focus on refurbishing machinery parts starting. Refurbishing requires less material compared to manufacturing new parts, which has led to improved cost efficiency and Gross Contribution towards Profit.

Improved product/service mix: Higher contribution from die head plates, blades/blade holders, supported by limited trading and consulting/export-commission activities.

Operating leverage and cost control: Several fixed and semi-variable cost lines (e.g., employee benefits, certain other expenses) did not rise in proportion to revenue and process discipline.

Other income support: Growth in export incentives and forex gain supplemented operating profitability.

An analysis of reasons for the changes in significant items of income and expenditure is given hereunder:

1. Unusual or infrequent events or transactions -

Our business has not experienced any unusual or infrequent events during the reporting periods that materially affected our operations. However, events such as global supply chain disruptions, fluctuations in raw material availability/prices, and volatility in foreign exchange rates could impact our future financial performance.

2. Significant economic changes that materially affect or are likely to affect income from continuing operations.

Our business has been subject to, and we expect it to continue to be subject to significant economic changes arising from the trends identified above in "Factors Affecting our Results of Operations" and the uncertainties described in the chapter titled "Risk Factors" beginning on page 20 of this Red Herring Prospectus. To our knowledge, except as we have described in this Red Herring Prospectus, there are no known factors which we expect to bring about significant economic changes.

3. Known trends or uncertainties that have had or are expected to have a material adverse impact on sales, revenue or income from continuing operations.

Apart from the risks as disclosed under chapter titled "Risk Factors" beginning on Page 20 of the Red Herring Prospectus, in our opinion there are no other known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations.

4. Future changes in the relationship between costs and revenues

Other than as described in the chapter titled "Risk Factors", "Business Overview" and "Management Discussion and Analysis of Financial Condition and Results of Operations" on Pages 20,158 and 244 respectively, to our knowledge, no future relationship between expenditure and income is expected to have a material adverse impact on our operations and finances.

5. Segment Reporting

Our company operates in a single segment. For details, please refer to chapter titled "Restated Financial Information" on Page 242 of the Red Herring Prospectus.

6. Status of any publicly announced New Products or Business Segment

Except as disclosed in the Chapter titled "Business Overview" on page 158, our Company has not announced any new product or service beyond our core portfolio.

7. Seasonality of business

Our business is not subject to seasonality. Orders are linked to production cycles of our customers operating in polyolefins, recycling solutions, polymer processing and etc. industries, which are generally consistent throughout the year. For further information, see "Industry Overview" and "Business Overview" on Pages 138 and 158, respectively.

8. Dependence on single or few customers

While we maintain long-term relationships with key customers, our business is not dependent on a single customer or a few customers alone. We serve a diverse base of domestic and international clients across more than 25 countries, reducing concentration risk. However, loss of a large customer or significant reduction in orders from key export destinations could adversely affect our results.

9. Competitive conditions

We operate in a competitive global market for pelletizing system components, facing competition from both domestic and international manufacturers. Competitive factors include quality, technical innovation, reliability, pricing, and service support. We believe our emphasis on simulation-driven design, refurbishment solutions, and customer-centric service provides us with a competitive edge.

Details of material developments after the date of last balance sheet i.e., March 31, 2026.

1. Our company has approved the audited financial statements for the financial year ending March 31, 2026 in the board meeting dated July 3, 2026.

2. Our company has approved the restated financial statements for the financial year ended March 31, 2026, March 31, 2025 and March 31, 2024 in the board meeting dated July 3, 2026.

3. Our company has approved the restated financial statements for the period ended July 31, 2026 in the board meeting dated October 17, 2026.

4. Ms. Ria Rajkumar Chaudhary is identified as a promoter by board of directors in their meeting held on September 18, 2026.

(I) Fund Based

(Rs. in lakhs)
Name of Institution	Sanction Amount	Purpose	Amount o/s as on 31.07.2026	Interest % per annum	Security/Margin	Period of Repayment/ Tenor (Months)
(A)	(B)	(C)	(D)	(E)	(F)	(G)
HDFCBANK	111.75	TERM LOAN AGAINST MACHINES	41.81	9.55	Machinery (25% margin)	60
HDFCBANK	10.09	AUTO LOAN- HYUNDAI EXTER	5.94	9.05	Vehicle	60
HDFCBANK	11.73	AUTO LOAN- GRAND VITARA	6.91	9.05	Vehicle	60
HDFCBANK	10.02	AUTO LOAN- ALTROZ	5.90	9.05	Vehicle	60
HDFCBANK	610.75	NON CGTMS- TERM LOAN AGAINST MACHINES	540.09	9.00	Machinery (25% margin)	84
HDFCBANK	371.25	PLOT 938939-940 WAGHODIA	305.81	9.00	Plot 938, 939 & 940, Waghodia GIDC, Vaghodia, Vadodara-391760, Gujarat, India.	84
HDFCBANK	289.25	CGTMS- TERM LOAN AGAINST MACHINES	259.35	9.00	Machinery (25% margin)	84
HDFCBANK	12.47	AUTO LOAN- MARUTI ERTIGA CAR	10.89	8.85	Vehicle	84
HDFCBANK	7.86	AUTO LOAN- HYUNDAI AURA	6.87	9	Vehicle	84
HDFCBANK	6.87	AUTO LOAN- TATA-TIAGO	6.00	9	Vehicle	84
Mercedes-Benz Financial Services India Pvt.Ltd	91.30	AUTO LOAN- Mercedes- Benz	59.84	8.30	Vehicle	60
Mercedes-Benz Financial Services India Pvt.Ltd	91.30	AUTO LOAN- Mercedes- Benz	59.84	8.30	Vehicle	60
HDFCBANK	200	BUSINESS LOAN- CGTMSE	179.71	11.5	BUSINESS LOAN- CGTMSE	48
HDFCBANK	99.00	CASH CREDIT	-37.75	7.75	Stock upto 180 days-25% & Debtors upto 90 days-50%	12
HDFCBANK	86.59	OVERDRAFT FACILITY	69.97	6.82	FD	-
HDFCBANK	18.66	AUTO LOAN- HYUNDAI CRETA	18.16	8.10	Vehicle	84
Total	2,028.89		1,539.34