Mid India Industries Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENT

The Global economy during the Financial Year 2025-26 demonstrated resilience despite continuing geopolitical tensions, evolving trade dynamics, inflationary pressures, and uncertainties in energy and commodity markets. Economic activity across major economies remained supported by improving financial conditions, technological investments, and gradual normalization of global supply chains.

According to the International Monetary Fund (IMF), global growth remained broadly stable during 2025 and is projected to continue at approximately 3.0%-3.3% in the medium term. While advanced economies continue to experience relatively moderate growth due to tighter fiscal and monetary conditions, emerging and developing economies remain key drivers of global economic expansion. Inflationary pressures have moderated compared to previous years, enabling several central banks to gradually adopt a more accommodative policy stance. However, geopolitical conflicts, trade disruptions, commodity price volatility, and global financial market uncertainties continue to pose risks to the global economic outlook.

The continued advancement of digital technologies, artificial intelligence, infrastructure investments, and manufacturing diversification across emerging markets is expected to support sustainable economic growth in the coming years.

The Indian economy continues to remain resilient despite global uncertainties and various economic challenges. Strong domestic demand, increasing investment, infrastructure development and ongoing reforms by the Government are expected to support economic growth. Indias large domestic market and favourable demographic conditions also continue to provide a strong foundation for future growth.

As per the latest projections of the International Monetary Fund (IMF), Indias economy is expected to grow by around 6.4% during FY 2026-27. While global economic conditions, geopolitical developments, energy prices and trade-related uncertainties may continue to pose challenges, India is expected to maintain a steady growth path.

The Governments continued focus on infrastructure development, digitalisation, ease of doing business and structural reforms is expected to create new opportunities and support economic activity. With a strong domestic market and continued policy support, India is expected to remain one of the major growth economies in the coming years.

The Company is engaged in the business of trading heavy plant machinery, equipment and spare parts. The Indian capital goods, infrastructure and industrial sectors continue to offer significant opportunities driven by increasing investments in roads, railways, mining, construction, manufacturing facilities, logistics infrastructure and urban development projects.

Government initiatives promoting domestic manufacturing, industrial expansion and infrastructure development are expected to increase demand for construction equipment, heavy machinery and related spare parts. The growing emphasis on modernization of industrial facilities and mechanization across various sectors also presents growth opportunities for the Company.

The import and export of heavy machinery and industrial equipment continues to offer attractive business opportunities due to increasing global trade integration and demand from developing markets.

However, the business is exposed to certain risks including intense market competition, pricing pressure, fluctuations in foreign exchange rates, changes in import-export regulations, supply chain disruptions, volatility in commodity prices and changes in government policies affecting industrial and infrastructure sectors.

Overall, the global economic outlook remains cautiously positive. While uncertainties continue to pose challenges, improving economic activity, technological investment and gradual easing of inflation are expected to support global growth in the coming years.

The real estate sector has been experiencing a relatively slow and cautious market environment due to changing customer preferences, higher costs and overall market conditions. Demand and new project activity have remained moderate. The Company is closely monitoring the market situation and intends to proceed with its projects at prevailing market conditions and business opportunities.

During the financial year, your Company operated in a single segment, namely the Trading Division, focused on trading heavy plant machinery and spare parts.

During the financial year 2025-26, Company has generated total income from trading of heavy plant machinery and spare parts and made total income of INR. 1323.38 lakhs for the financial year ended March 31, 2026 as against INR. 632.17 lakhs in the previous year and earned net Profit before comprehensive income of INR. 29.85 lakhs in comparison to previous year incurred net loss of INR. 11.79 lakhs.

The Company shall enter into real estate sector and plans to develop residential projects to cater to the growing housing needs. The Company has received approval from the Collector of District Mandsaur for development of a residential colony under the project name Agrasen Enclave-2.

However, some of the required statutory approvals from the concerned authorities are still awaited. In addition, the real estate market is currently slow. Therefore, the project has not yet commenced and the Company proposes to start the project after receiving the remaining approvals and considering the market conditions.

Indias infrastructure and manufacturing sectors are expected to remain key growth drivers over the coming years. Continued government spending on infrastructure development, industrial corridors, smart cities, logistics parks, renewable energy projects and transportation networks is expected to create sustained demand for heavy machinery and equipment.

The capital goods sector is expected to benefit from increased investments in manufacturing, construction, mining, energy and infrastructure projects. Rising mechanization and technology adoption across industries are likely to further support demand for specialized machinery and equipment.

The Companys strategic focus on machinery trading, customer service, operational efficiency and market expansion is expected to support future growth opportunities.

Risk Management plays a key role in business strategy and planning discussions. The Company has implemented a comprehensive risk management framework to identify, understand and manage risks associated with the business. The Companys risk management framework helps in conducting business in a well-controlled environment. It has in place a mechanism to identify, assess, monitor and mitigate various risks associated with the business.

Strict internal processes and controls enable the Company to effectively manage the business risks it encounters on daily basis. Risk Management Framework of the company ensures achievement of its strategic objectives; the framework is supported by risk processes, identification, assessment, response, action, mitigation and control. Risk Management framework of the company proactively addresses risks and seizes opportunities so as to gain competitive advantage, and also protects and creates value for the stakeholders.

As the real estate industry continues to evolve, the industry faces a multitude of threats and challenges. Rapid technological advancements, changing market trends, and regulatory complexities pose constant hurdles. Moreover, competition intensifies as new players enter the market. Navigating these obstacles requires strategic planning, innovation, and adaptability to ensure continued success in this dynamic landscape.

The Company has established adequate internal control systems commensurate with the size, scale and complexity of its operations. These systems are designed to ensure efficient conduct of business, safeguarding of assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records and timely preparation of reliable financial information.

The internal control framework is regularly reviewed and strengthened to ensure operational effectiveness, compliance with applicable laws and regulations and achievement of business objectives.

Financial and Operational performance forms part of the Annual Report and is presented elsewhere in the report.

The company is focusing the business of trading activities and therefore no substantial employment required. The company is committed to creating a professional culture to nurture and enable people to grow in their careers alongside Companys success. The company constantly strives to strengthen its manpower in alignment with the business needs and continue to engage them through various initiatives in the realm of learning & development opportunities, reward & recognition, employee engagement activities and career growth. As on 31st March, 2026, Company had 5 employees.

Your Company enjoyed during the year under review cordial relationship at all levels.

As per the amendment made under Schedule V to the Listing Regulations read with Regulation 34(3) of the Listing Regulations, details key financial ratios and any changes in return on net worth of the Company are given below:

Debtors Turnover: The Debtors Turnover Ratio has increased significantly during the year, mainly due to the substantial increase in the Companys turnover and efficient collection of receivables.

Inventory Turnover: The Inventory Turnover Ratio has increased during the year due to higher turnover generated by the Company and better movement of inventory.

Current Ratio: The Current Ratio has increased during the year mainly due to a significant increase in current assets, in line with the increase in the Companys turnover.

Operating Profit Margin: The Operating Profit Margin has increased during the year mainly due to a reduction in operating expenses, resulting in improved profitability.

There is Change of 7.67% in Return of Net Worth as compared to previous Financial Year Due to Accumulated Losses as a result of which Net worth of the Company has become Negative.

Statements in this Management Discussion & Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be “forward looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. The company assumes no responsibility to publicly amend, modify or revise any such statements on the basis of subsequent developments, information or events.

There are various factors like conditions in global financial markets, regulatory intervention and other acts of violence which may lead to situations unpredictable for any one Important factors that could make a difference to the Companys operations include economic developments in the country and improvement in the state of capital markets, changes in the Government regulations, tax laws and other status and other incidental factors.