Nava Ltd Management Discussions

Company Overview

Nava Limited is a Hyderabad-headquartered, mutti-continentat industrial group with established businesses across metats, energy, mining, healthcare and commercial agriculture. The Company operates across India, Zambia and Southeast Asia, reflecting its growth from a domestic ferro attoys and power enterprise into a diversified, mutti-geography business group with a portfotio of tong-cycte industriat assets.

The breadth of the Companys portfotio is the product of a detiberate and consistent capitat attocation strategy. Each verticat — from ferro attoys in Tetangana and Odisha to thermat power in Zambia, from commerciat avocado farming and integrated sugar cuttivation in Kawambwa, Zambia to Sotar power at Maamba, Zambia — reftects a singte, tong-hetd investment conviction: deptoy capitat where barriers to entry are high, stay through the gestation period, and buitd assets that generate returns over decades rather than quarters. The resutt is a business group whose strengths compound across geographies, cyctes and sectors — quietty and consistentty, year after year.

FY 2025-26 was marked by strong cashftow returns from Maamba Energy Limited (MEL) which boosted Standatone Totat Income and Profit After Tax and making steady progress in the under-construction power and commerciat agricutture projects. This year marked a journey towards the renewabte energy portfotio with 100 MW Sotar project being imptemented in Zambia with a targeted commissioning by August 2026. Brown fietd expansion of 300 MW thermat power ptant under MEL and Avocado ptantation projects have attained criticatity with overatt project progress crossing 50% mark during the year and nearing compLetion phase by March 2027. Avocado ptantation had initiat fruit yietd of over 150 MT from Division A ptants which witt increase YoY with the growth of the ptants.

This report presents the managements perspective on externat environment affecting the companys businesses atongside strategy, operationat and financiat performance, materiat devetopments, risks and opportunities and the adequacy of internat controts. It shoutd be read in conjunction with the Companys standatone and consotidated financiat statements, Directors Report, and other sections of the annuat report.

Global Economic Overview and Outlook

The gtobat economy navigated a comptex and increasingty uncertain environment during FY 2025-26, shaped by etevated geopotiticat risks, trade poticy uncertainty, commodity price votatitity and the emergence of conftict in the Middte East during the second hatf of the year. After absorbing significant trade-retated disruption eartier - inctuding US tariff measures and retatiatory action — the gtobat economy entered a more chattenging phase with rising energy prices, firmer inftation expectations and tighter financiat conditions.

Regional Geopolitical Risk (Index, 1990s = 100).

The Middle East conflict has impacted the world economy through various channels of oil supply shocks and energy prices skyrocketing within short period impacting the trade flows, logistics costs, as well as many secondary quantity and price effects for various commodities down the value chain, including fertilisers, metal products, and packaging materials. These effects are likely to reverse in a gradual manner, after the end of military operations, with likely continuation of some geopolitical risk premium into market prices and the lingering effect of physical damages suffered by energy facilities and certain industries in the region during the war.

According to the IMFs April 2026 World Economic Outlook - titled Global Economy in the Shadow of War — global growth is projected at 3.1% in 2026 and 3.2% in 2027, below pre-pandemic averages. Global headline inflation is projected at approximately 4.4% in 2026 before resuming its downward trajectory. In the IMFs adverse and severe scenarios, global growth could fall to 2.5% and 2.0% respectively. In 2025, the global economy grew at an estimated 3.2%, supported by strong performance from India and Southeast Asian economies.

Advanced economies are expected to grow at a moderate pace, with the United States projected at 2.3% in 2026. Chinas growth is projected to moderate to 4.4% in 2026. India remains the fastest-growing large economy at a projected 6.5% for FY 2025-26 and 6.5% for FY 2026-27, underpinned by strong domestic demand and relative insulation from direct conflict impacts.

IMF Regional Growth Forecasts

Region	2025 (Est.)	2026 (Proj.)	2027 (Proj.)
World Output	3.4%	3.1%	3.2%
Advanced Economies	1.9%	1.8%	1.7%
United States	2.1%	2.3%	2.1%
Emerging Markets	4.4%	3.9%	4.2%
China	5.0%	4.4%	4.0%
India	7.6%	6.5%	6.5%

Source: IMF World Economic Outlook, April 2026. 2025 figures are estimates; 2026 and 2027 figures are projections.

The headwinds from higher trade barriers and elevated uncertainty have been offset by tailwinds from technology-related investment; accommodative financial conditions, including a weaker US dollar; and fiscal and monetary policy support.

Navigating a profoundly changing economic and geopolitical landscape requires policies that are robust to alternative states of the world. The policymakers must prioritise preserving price and financial stability, safeguarding fiscal sustainability and accelerating structural reforms. Fostering adaptability, maintaining credible policy frameworks, and reinforcing international cooperation are essential to navigating this environment. Indian Economic Overview and Outlook

India continued to stand out among major economies during FY 2025-26, supported by resilient domestic demand, public infrastructure spending, manufacturing expansion, formalisation and digital adoption, rationalisation of GST rates. Provisional

GDP growth was at 7.7% for FY 2025-26 according to the advance estimates of the National Statistical Organisation while for FY 2026-27, real GDP is projected to expand by 6.7%.

Inflation moderated substantially to the lower end of the RBIs tolerance band, averaging just above 2% during the year. GST rate cuts and moderation of food inflation contributed to the low inflation outcome, providing policy space for the RBI to cut its key repo rate by 100 basis points during the year. Headline CPI inflation is projected to rise to the RBIs target of 4% in FY2026-27.

The Indian economy continued on a strong footing with robust growth momentum and low inflation until the Middle East conflict.

The strong fundamentals helped the economy navigate through the effects of the crisis, related to US trade barriers and supply chain disruptions.

The government has undertaken several policy measures to absorb some of the pricing effects and support exporters.

The export barriers and the prolonged geopolitical risks are likely to hit the growth momentum, increase inflationary risks and widen the current account deficit. While there is significant uncertainty about the intensity and duration of the Middle East conflict, current projections indicate inflation rising above 4% and current account deficit widening to about 1.5% of the GDP.

Though these are adverse to the growth, the projected levels are still short of the levels that have caused macroeconomic instability in the past.

The Indian Meteorological Department (IMD), in its preliminary assessment, has forecast below-normal monsoon rainfall in 2026 because of El-Nino effects. This poses some risks to the outlook for agriculture and rural economy.

Notwithstanding the near-term headwinds, Indias medium-term growth prospects continue to be encouraging with economic reforms of labour codes and GST rationalisation bolstering the competitiveness of Indian industries. Conclusion of recent trade deals with the UK, EU, Oman and New Zealand and a one in pipeline with the US, augur wett for Indias exports and FDI investments.

The growth outlook is supported by: continued public capital expenditure; improving private capex; tax rationalisation broadening the urban consumption base; healthier household, corporate and bank balance sheets; and stable financial sector conditions.

India GDP Growth Rates

Financial Year	GDP Growth Rate
FY 2021-22	9.7%
FY 2022-23	7.6%
FY 2023-24	8.2%
FY 2024-25	6.5%
FY 2025-26 (Proj.)	6.6% - 7.3%

Source: Ministry of Statistics & Programme Implementation; RBI Monetary Policy Committee Statements; IMF World Economic Outlook, April 2026.

Ferro Alloys Industry Scenario

The ferro attoys industry is ctosety linked to the steet demand cycle. During FY 2025-26, global steet markets remained mixed — subdued demand in mature markets, protonged weakness in housing construction in China, and pricing pressure from oversuppty in some categories.

Significant divergence persists across regions. White steet demand in China is expected to continue dectining in the near term, devetoping economies exctuding China are projected to record growth. India is expected to remain a key growth driver, supported by expansion across infrastructure, construction and manufacturing. Emerging regions of ASEAN, MENA and

Africa are atso witnessing renewed momentum in steet consumption.

According to the Wortd Steet Association (WSA), gtobat steet demand in 2025 was at around 1,751 MnT and a modest recovery of 1.0% is anticipated in 2026, with demand rising to approximatety 1,773 MnT after two years of dectine. The catcutation assumes that the Middte East crisis resotves by the middte of the year. The WSA has atso undertined that major steet markets in the wortd are not being impacted by the direct spittovers of the crisis.

Indias steet demand is expected to grow at a heatthy rate of 7 - 8% in FY 2026-27 white the steet consumption is projected to reach 176 - 178 MnT majorty driven by infrastructure investment, urbanisation and manufacturing expansion. Government commitment remains strong, with pubtic infrastructure spending remaining robust.

Despite overatt gtoomy domestic outtook, Indian steet industry witt need to face excessive exports out of China and protectionist measures by att countries witt inftuence domestic prices.

The gtobat ferro attoys market reached USD 56.7 bittion in 2024 and is expected to grow at a CAGR of approximatety 5.9% through 2033. Asia-Pacific accounts for approximatety 75% of gtobat sitico manganese consumption. China accounts for approximatety 61% of gtobat ferro-sitico-manganese consumption.

During the year, India produced approximately 4 million tonnes of manganese alloys, of which approximately 1 million tonnes was earmarked for export, primarily to Europe and the Middle East. EU safeguard measures of tariff-rate quotas and price thresholds, US tariffs combined with Middle East conflict, restricted these markets — redirecting significant material into the domestic market and compressing domestic realisations. With the projected steel demand and increasing steel manufacturing capacity in India, the demand for ferro alloys is projected to grow domestically albeit at a lower rate.

World Steel Demand (Million Tonnes)

	2022	2023	2024	2025(E)	YoY %
World	1,778	1,779	1,744	1,751	0.4%
China	927	905	857	844	-1.5%
India	116	133	148	162	9.5%
Advanced Ec.	374	358	349	347	-0.7%
World ex-China	851	874	887	907	2.2%

Source: World Steel Association Short Range Outlook, April 2026.

Power Sector Industry Scenario

Global power demand continues to rise rapidly supported by the increasing electrification of transportation, advanced manufacturing, high value-added services, AI and the building sectors. Electricity demand grew by 3% in 2025 exceeding the decade long average of 2.8%. The demand from electrical vehicles and data centres is increasing at healthy rates while their overall contribution to demand growth remained relatively small.

Globally renewable energy capacity and generation is increasing at a faster pace and its share of generation mix has reached about 34% in 2025. Battery storage deployment grew at an exceptional pace with 108 GW of new battery storage capacity deployed globally whose growth will continue for catering the peak hours demand.

Global electricity demand is forecast to increase supported by raising consumption from industries, urbanisation, data centres and strides in electrification. Emerging economies will continue to be the main pillar of electricity demand growth, accounting for nearly 80% of additional electricity consumption through 2030.

Indias power sector recorded its strongest year of capacity addition and historically low energy shortage. Total installed capacity exceeded 532 GW by March 2026. The share of thermal capacity in the total installed generation mix declined from 61% in FY 2020-21 to 47% in FY 2025-26, while the share of renewable capacity including large hydro surged from 25% to 42%. The growth in renewable capacity addition in particular ~45 GW of Solar capacity enabled India to attain the third position globally in renewable energy installed capacity.

Coal-fired thermal generation continues to provide approximately 65% of electricity supply. The Government awarded 13.32 GW of new coal-based thermal capacity in FY 2025-26. The domestic power exchange witnessed pricing pressure during the year, with average exchange tariffs declining approximately 13% year-on-year because of prolonged monsoon, reinforcing the strategic value of long-term bilateral PPAs.

Notable trends in Indias Power sector during the financial year are:

• Successfully met record demand of 245 GW

• Per capita electricity consumption has increased to 1460 kWh in 2024-25 Vs 957 kWh over a decade

• Power shortages have reduced to a mere 0.03% in FY2026, a substantial improvement from 4.2% in FY2014.

Indias power sector is poised for sustained growth, supported by strong demand fundamentals, policy support, and an accelerating energy transition. To meet this demand, India is undertaking a largescale capacity expansion with a strong focus on clean energy, targeting 500 GW of non-fossil fuel capacity by 2030. Energy storage solutions, including battery storage systems and pumped hydro, are gaining increasing importance to address peak demand and variations associated with Solar power.

Zambia

Zambias power sector continues to face structural challenges arising from heavy dependence on hydroelectric generation (approximately 85% of installed capacity). The 2023-24 drought catalysed an active policy response, with the Government pursuing energy diversification through thermal IPPs, solar capacity and open-access frameworks. ZESCOs financial position has improved materially. The Zambian Kwacha appreciated by approximately 32% against the US Dollar during the year, reflecting improved macroeconomic stability.

Zambia is adding both thermal and solar capacities at a much faster pace in recent years for catering to the demand growth from domestic consumers and copper mining companies.

Opportunities & Threats

Ferro Alloys

The primary catalyst for positive growth of Ferro Alloys industry is the increasing demand for steel. Factors of increased demand for housing and infrastructure, urbanisation, increased living standards, expansion of manufacturing are driving the demand for steel industry which in turn leads to higher consumption of Ferro Alloys.

The stringent environmental regulations, carbon neutrality targets and industry standards imposed by regulatory bodies on the iron and steel manufacturing industries may impede the expected high growth unless large investments happen towards green steel solutions.

The major challenges being faced by the ferro alloys sector:

• Increase in energy prices

• Lower availability of Manganese ore domestically and higher dependency on import materials which are subjected to supply-chain disruptions

• Imposition of tariffs and quotas by the developed economies

Power Sector

Global electricity demand is at structurally strong growth phase, with demand forecast to increase at annual average rate of 3.6% till 2030 supporting raising consumption from industry, electric vehicles, data centres and standard of living. India is expected to be one of the key contributors to this growth, with electricity demand projected to grow at ~6.5% till 2030.

Renewables, nuclear are expected to meet majority of additional global electricity demand over next 5 years. Total generation from renewables is overtaking coal globally while in India, its share is being increased drastically YoY.

Despite the addition of capacities and increased demand, the sector faces several challenges as given below:

• Grid integration challenges majorly for renewable energy sources

• Higher solar generation during day times are threating the existence of thermal power plants which has raw material and higher fixed costs

• Continuous innovation in energy technologies leading to enhanced efficiency and cutting costs making the existing power capacities disadvantaged.

Companys Performance Overview

Financial Highlights

FY 2025-26 has been a year of strong standalone performance and steady consolidated operations. The table betow presents the audited summary.

	Standalone	Consolidated
Particulars	FY2025-26	FY2024-25	% Growth	FY2025-26	FY2024-25	% Growth
Revenue from Operations (Lakhs)	1,92,473	1,61,203	19.4%	4,29,091	3,98,355	7.7%
Totat Income (Lakhs )	2,24,174	1,80,020	24.5%	4,47,866	4,13,517	8.3%
EBITDA (Lakhs )	70,278	56,319	24.8%	1,90,519	1,98,678	(4.1%)
Profit before Tax and after exceptionat item, discounted operations (Lakhs)	1,06,868	52,479	103.6%	1,50,063	1,60,677	(6.6%)
Profit after Tax (Lakhs)	91,093	42,169	116.0%	1,03,852	1,43,400	(27.6%)
EPS - Basic ()	32.19	14.54	121.4%	27.80	37.63	(26.1%)
Reserves exct. revatuation (Lakhs)	4,25,862	3,57,984	19.0%	7,58,293	6,87,975	10.2%

Standalone Revenue from Operations grew 19.4% to 1,92,473 Lakhs, supported by higher Sitico Manganese volumes and improved Indian power operating parameters. Other income recorded was highest ever with dividend flows of 25,406 Lakhs from Nava Global Pte Ltd and domestic subsidiaries. Standalone PAT grew 116.0% to 91,093 Lakh with exceptional gain made from the buyback of shares carried out by subsidiary Nava Global Pte Ltd.

Consolidated Revenue from Operations grew 7.7% to 4,29,091 Lakhs aided by growth in Standalone and MEL. Consolidated PBT declined 6.6% to 1,500.63 Lakhs, white Consolidated PAT was 276% tower at 1,03,852 Lakhs. The decline in Consolidated PAT was majorty with MELs power division getting into tax liability structure (now taxed at 15% effective rate fottowing comptetion of the tax-hotiday period) and deferred tax tiabitity on account of forex gains associated with appreciation of Zambian Kwacha

Maamba Energy Limiteds (MEL) 300 MW power ptant continue to operate at high degree of operationat parameters and maintained its materiat contribution to the consotidated financiats. The construction of MELs brown fietd expansion by 300 MW, 100 MW Sotar and integrated Sugar manufacturing projects have gained criticatity white Avocado ptantation is as per schedute which is being devetoped in phases. 100 MW Sotar project is projected to commence operations by Juty- August 2026 white 300 MW thermat power ptant during the period of January - March 2027

Avocado ptantation had first trait fruit yietd of over 150 MT harvested during the year. The mining division in Zambia has sustained its revenue white increase in mining costs and forex tosses have dented its profitabitity.

The increase in consotidated debt is with the drawt of term toans for the projects of 300 MW thermat power ptant and 100 MW Sotar.

Segment-wise Performance

Metals Division

Location	Capacity	Products
Patoncha, Tetangana	4 smetters - 125,000 MTPA	Sitico Manganese and Ferro Siticon
Dhenkanat, Odisha	2 smetters - 50,000 MTPA	Sitico Manganese

Quantitative Details of the Division

Particulars	FY 2025-26	FY 2024-25	YoY Change
Sitico Manganese - Production (MT)	127,486	104,165	22.4%
Sitico Manganese - Sates (MT)	134,410	94,686	42.0%
Ferro Siticon - Production (MT)	5,966	13,490	(55.8%)
Ferro Siticon - Sates (MT)	8,039	12,162	(33.9%)

FY 2025-26 was characterised by a deliberate shift in product mix and a meaningful expansion of Sitico Manganese volumes. Ferro Silicon production was stalled with the imposition of tariffs by US and quota system by EU which affected the export competitiveness.

The division navigated a challenging global environment characterised by EU quota system, Middle East market disruptions and dumping of export-grade material into the domestic market. Navas contracting discipline held the tine: approximately 40% of production sold under long-term annual contracts with Japanese mitts, 40-50% under quarterly fixed-base contracts with major Indian steet producers, limiting spot-market exposure to only 10-15% of output.

Going into FY 2026-27, the Company expects Sitico Manganese production to be tower with the announced shutdown of furnaces at Odisha-Ops for the period of Aprit - June 2026.The current instatted set-up provides ftexibitity to produce up to approximatety 160,000 MT depending on market conditions.

For the year, the Operationat revenue of the Metats division increased by 29.3% to 1,20,049 Lakhs with increased production and sates votumes of Sitico Manganese Attoys. PBT was 3,628 Lakhs Vs 2,693 Lakhs for FY2025 with higher export sate votumes whose margins were retativety better compared to domestic sates.

The prices of Manganese ore and other major raw materiats were consistent during the year. Owing to decrease in coat prices by Singareni Cottieries and higher operationat parameters of power ptant at Odisha-Ops, the captive power tariffs have been revised downwards whose positive effect witt be seen in FY 2026-27.

The increase in demand from domestic market and hope of increase in sate prices post easing of Middte East crisis and geopotiticat tensions provides a positive outtook for the Manganese Attoys in the near term.

Energy Division

Nava has the betow operating capacities of 714 MW across India and Zambia. Under standatone, 144 MW capacity is earmarked for captive consumption in the production of ferro attoys.

Company	Location	Capacity	Plant Type
Nava Limited	Patoncha, Tetangana	114 MW	CPP
	Dhenkanat, Odisha	150 MW	30 MW CPP / 120 MW IPP (w.e.f. 01 Nov 2025)
Nava Bharat Energy India Limited	Patoncha, Tetangana	150 MW	IPP
Maamba Energy Limited	Maamba, Zambia	300 MW	IPP - mine-to-mouth integrated

Standalone / Indian Energy Operations

Indian power operations recorded a strong year of improved utitisation and better cost competitiveness. Totat merchant power units sotd grew to 1,607 mittion kWh from 1,551 mittion kWh, with average PLF improving to 71.5% from 69.4%.

The conversion of 60 MW unit from CPP to IPP during the year has hetped in improving the operationat parameters of 150 MW capacity at Odisha-Ops with competitive marginat cost. Further the execution of 5 year Power Purchase Agreement (PPA) for 50 MW capacity starting from February 2026 has brought in stabitity to the operations. 150 MW power ptant has operated at PLF of 77.2% Vs 71.5% for FY 2025.

114 MW power ptant at Tetangana-Ops operated at a heatthy PLF of 74.5% Vs 66.1% for FY 2025 with the avaitabitity of bitaterat contracts and increased captive consumption by Ferro Attoys. The reduction in coat prices by Singareni Cottieries in the second hatf of the financiat year has further comptemented the unit in supptying power at retativety tower tariffs which ted to merchant sates being at 195.0 MUs Vs 179.0 MUs for FY2025.

Standalone operational performance

The operational revenue of power division from 264 MW was 83,407 Lakhs a decline by 1.2% compared to FY 2025. The decline in revenue was mainly because of softening in merchant tariffs compared to previous financial year even though generation was higher. The PBT for the year was 17,965 Lakhs Vs 20,288 Lakhs for last FY which had insurance claim of 1,424 Lakhs.

The structural shift toward long-term bilateral contracts - and the reduction in Singareni coal prices from September 2025 - will compound through future periods.

Nava Bharat Energy India Limited (NBEIL)

NBEILs 150 MW power plant operated at a PLF of 63.5% during the year Vs 69.9% PLF for FY2025. The reduction in PLF was because of lower merchant tariffs during the year over power exchanges with prolonged monsoon and increased solar power generation during day times.

The reduction in coal costs by Singareni Collieries and allotment of total coal required by Singareni Collieries under Shakti B-III scheme has helped the company in lowering coal costs which is expected to aid the profitability in the current year.

NBEIL delivered operating revenue of 44,157 Lakhs, PBT of 7,946 Lakhs and PAT of 5,925 Lakhs for FY 2025-26. The consolidation of providing technical support services to MELs 300 MW power plant at Nava Limited has reduced the operating revenue.

Maamba Energy Limited, Zambia - Energy and Mining

Maamba Energy Limited (MEL) operates Zambias only large-scale integrated coal-fired 300 MW power plant and the countrys largest coal mine. MEL holds a 20-year Power Purchase Agreement with ZESCO Limited, Zambias state utility and supplying power since 2016.

MEL maintained stable high utilisation during the year, with an average PLF of 89.6% and power units sold of 2,115 million kWh. The power plant operated at full load excepting for minor outages from the grid and planned maintenance activities which helped in sustaining the consolidated financial performance.

MEL - Key Operational and Financial Data

Particulars	FY 2025-26	FY 2024-25	Comment
Average PLF (%)	89.6%	89.8%	Broadly stable high utilisation
Power Units Sold (Mn kWh)	2,115	2,109	Marginal improvement with reduction in auxiliary consumption
Coal Outside Sales (MT 000s)	471	443	Improved external sales
Total Revenue Lakhs	226,046 (US$ 256.0 Mn)	207,380 (US$ 245.2 Mn)	Higher revenue
EBITDA Lakhs	133,661 (US$ 151.4 Mn)	131,413 (US$ 155.4 Mn)	Marginally higher in INR and lower in US$
PAT Lakhs	71,901 (US$ 81.4 Mn)	97,646 (US$ 115.5 Mn)	Impacted by tax applicability and DTL provision

Total revenue increased to US$ 256.0 million from US$ 245.2 million while EBITDA was marginally lower at US$ 151.4 million Vs 155.4 million for FY2025. PAT declined to US$ 81.4 million from US$ 115.5 million, with tax liability for power division starting from this FY following completion of the tax-holiday period and the deferred tax provision arising from the Kwacha appreciation. Expected Credit Loss (ECL) of US$ 15.5 million reversed during the year Vs US$ 17.1 million for FY25 in line with the accounting estimate.

Receivable arrears from ZESCO reduced to US$ 28.0 million from US$ 160.6 million as in March 2025. The realisation of arrears coupled with regular monthly payments have helped MEL pay dividend of US$ 175.0 million during the year alongside full repayment of shareholder loans to both the sponsors in early part of the financial year.

Coal Mining Operations

External coal sales grew to 471,976 MT during FY 2025-26 from 442,728 MT in the previous year. Mining division reported a growth in revenue at 47,659 Lakhs (US$ 54.0 million) Vs 45,458 Lakhs (US$ 53.8 million) with the increased external coal sales. PBT for the year declined by 14.7% to 13,874 Lakhs from 16,266 Lakhs (US$ 19.2 million) for FY25 because of increase in mining costs and forex losses. The mine-to-mouth model continues to provide fuel security, cost stability and independence from global coal market dynamics, while also contributing external revenue beyond the captive requirement.

Phase II - 300 MW Power Plant, Zambia

Construction of MELs Phase II 300 MW brown field thermal power plant is progressing steadily. Of the capex outlay of USD 400 million, debt funding of US$ 290 million is tied-up with Zambian banks and financial institutions. Commissioning of the project is targeted for Q4 FY 2027. Nava Energy Pte Ltd has been appointed as the O&M Contractor. The PPA with ZESCO for 100% of Phase II net capacity is in place at 9.5 US cents per kilowatt hour. At full year operation, Phase II is expected to generate USD 180-200 million in annual revenues.

100 MW Solar Power Plant, Zambia

Development of the 100 MW solar project under Maamba Solar Energy Limited (MSEL) is progressing well, with commissioning scheduled to commence in July 2026. While total capex of the project is US$ 90 million, debt funding of US$ 63 million has been tied-up. The 20-year PPA with ZESCO is signed at 7.80 US cents per kilowatt hour. At full operation, the project is expected to generate USD 20-22 million in revenue.

The Healthcare Division

Healthcare remains a part of Navas diversified portfolio through overseas operations engaged in medical distribution of womens health and wellness products in Southeast Asia. Through Compai Pharma, the Group distributes two products and one product in Malaysia and Singapore respectively and has signed exclusive distribution rights for more products. The business remains in a development phase, with emphasis on product expansion, commercialisation and improving its operating profile.

The clinic operated by The Iron Suites Pte Ltd was closed during the year which required higher management oversite while the growth potential was limited.

Agri-Business

Nava Avocado Limited

Avocado plantation project achieved a defining milestone during FY 2025-26 with its first commercial harvest of over 150 MT from Division A, exported into the South African market. As in March 2026, over 250,000+ avocado plants have been planted and the full plantation of 400,000 trees to be completed by May 2027.

Construction of the state-of-the-art Packhouse is underway while Division A plantation have received Global Good Agricultural Practices (GAP) certification. With a target fruit yield of ~25,000 MT at peak maturity of the trees, the Company is building a high margin, export driven agriculture plantation.

The plantation is expected to yield approximately 1,200+ MT in FY 2026-27, with volumes expected to approximately double each year thereafter through 2034.

Kawambwa Sugar Limited — Integrated Sugar Complex

The construction of the integrated Sugar project has commenced during the year with progress made in sugarcane plantation activity and land development. All major packages have been ordered. The integrated complex — comprising sugarcane plantation in 4500 Ha, 2,500 TCD sugar processing, 30 KLPD distillery and 20 MW co-generation power plant — is expected to be commissioned by March 2028.

Debt financing for the project is being worked upon with Bilateral financial institutions and banks.

Operations and Maintenance Services

Navas Operations and Maintenance capability is anchored in years of experience operating thermal power assets at high parameters across India and Zambia. The sustained performance of MELs 300 MW power plant — consistently delivering high availability and strong PLF — is the most direct evidence of this capability. Nava Energy Pte Ltd has been appointed as O&M Contractor for MELs Phase II 300 MW expansion, extending the divisions mandate while Nava Energy Zambia Limited is appointed as O&M Contractor for MSELs 100 MW Solar project.

During the year, the contracts of providing technical support services by Indian group companies have been consolidated at Nava Limited.

Manganese Ore Mining and Mineral Exploration

In Cote dIvoire, the Company holds a 340 square kilometre manganese ore concession. Exploratory work in part of the mine area has yielded promising results, and the metallurgical studies are underway, post which the Company will move towards an exploitation permit.

In Zambia, lithium exploration in the Mapatizya area — close to the Maamba thermal plant — is ongoing, subject to regulatory clarity on an overlapping licence claim currently under review by the Ministry of Mines.

Outlook

Nava is poised for commissioning the projects under construction in Zambia other than integrated Sugar project during the current year. The strong cashflows and strengthened balance sheet will support the group to take up new projects across its core and emerging businesses. Focus remains on early commissioning of committed projects - 400 MW Power capacity addition and Avocado plantation.

Metals

India is expected to remain the fastest-growing large steel-demand market in 2026 and 2027, providing a positive backdrop for domestic ferroalloy demand. The governments capital expenditure growth and continuing infrastructure upgrade, strong momentum of automobile industry with GST rationalisation, Indias trade deals with developed economies are likely to support the momentum in the steel industry.

The Companys strategic mix of long-term Japanese export contracts and limited spot-market exposure positions it well. Pricing remains fluid; however, management does not anticipate any reason for prices to fall meaningfully below the preceding year on a full-year basis.

The domestic market for ferro alloys is expected to be quite stable given the uptick in demand for steel within India. However, continued weak export market and trade barriers will continue to have pressure on the realisations in the domestic market. The reduction in captive power tariffs shall improve the competitiveness and margins of the division.

Indian Energy

Indias power sector will witness sustained growth supported by strong demand driven by robust economic expansion, urbanisation, increased local manufacturing etc. Emerging demand from electric vehicles, data centres and AI driven infrastructure are expected to further strengthen the power consumption.

At Nava, the availability of medium term PPA, reduction in coal prices by Singareni Collieries, conversion of 60 MW unit into IPP will compound through FY 2026-27. The reduction in merchant tariffs during daytime over the power exchanges because of substantial increase in solar power generation, the projected below average monsoon and dry spells have to be watched for remunerative tariffs.

Zambia Energy and Mining

The power deficit scenario in Zambia and Southern African nations make MELs 300 MW power plant to operate at full capacities. The commissioning of 100 MW Solar and 300 MW thermal power plants during the current year may help in reducing the power deficits in Zambia thereby boosting the overall economic activity.

The group will witness additional revenues during the year with the expected commissioning of 100 MW Solar and 300 MW thermal power plants. Lower ECL reversal and appreciation of Zambian Kwacha will impact the profitability of MELs power division.

MEL expects to maintain the targeted external sales of 40,000 - 50,000 MT per month to the industrial consumers. The demand for high grade coal is expected to increase with improved economic activity owing to reduced power deficits going forward. The competition from the nearby mines is being addressed with increased marketing efforts and pricing strategy.

Commercial Agriculture

Avocado fruit yield from Division A plantation is expected to scale to 1,200+ MT in FY 2026-27 with the growth in tree sizes, from approximately over 150 MT in FY 2025-26, with progressive scaling thereafter. Division B plantation is expected to provide trial yield during the current year.

Risks and Mitigation

The Company maintains an Enterprise Risk Management framework to identify, evaluate and respond to operational, strategic, financial and regulatory risks.

Risk Type	Risks Involved	Mitigation Strategy
Sector-specific & Market	Ferro alloys exposure to steel demand; export-market weakness; commodity price volatility; power tariff movements; geopolitical uncertainty	Continuous monitoring; flexible product mix; long-term contracts; geographic diversification
Commercial	Pressure on realisations; freight costs; customer payment delays; spot-market exposure	Credit assessment; contractual enforcement; Letter of Credit mechanisms; prudent bidding
Financial	Cost and availability of capital; forex volatilities; deferred tax movements from currency appreciations	Disciplined capital allocation; project finance discipline; hedging, calibrated dividend decisions
Business	Fuel availability and pricing; manganese ore and reductant availability; project execution risk	Mine-to-mouth coal at Maamba; backward integration via Ivory Coast Manganese ore mine; phased project execution
Regulatory	Power sector regulations; Zambian statutory instruments; Zambia elections in August 2026	Regulatory engagement; legal and compliance oversight; ring-fencing of USD power assets
Environment & Climate	Agriculture exposure to weather; energy transition policies	Insurance; agronomic controls; irrigation; site- level monitoring; diversification into solar
Counterparty	ZESCO payment terms; potential PPA renegotiation	Bilateral engagement; arbitration precedent; receivables now reduced to US$28.0 million
Community	Community expectations; environmental scrutiny	CSR; stakeholder dialogue; local hiring; grievance mechanisms

Internal Control Systems and their Adequacy

Navas internal control systems are commensurate with the size, scale and complexity of its operations. Structured processes, independent audit reviews, ERP-integrated controls and periodic oversight by the Audit Committee ensure operational discipline, accuracy of financial reporting and compliance with applicable laws across domestic and overseas operations.

The Board affirms that internal controls are adequate and commensurate with the size and complexity of operations.

Financial Performance

Standalone Statement of Profit and Loss

Revenue from Operations increased 19.4% to 1,92,473 Lakhs from 1,61,203 Lakhs in FY 2024-25.Total Income - including other income - increased 24.5% to 2,24,174 Lakhs. EBITDA before exceptional items grew 24.8% to 70,278 lakhs while PBT including exceptional items of 40,395 Lakhs increased to 1,07,011 Lakhs. PAT grew 116.0% to 91,093 Lakhs. Standalone EPS rose from 14.54 to 32.19, an increase of 121.4%.

Standalone Balance Sheet

Shareholders funds increased to 4,28,693 Lakhs by 18.8% with the ploughing of profits into the business. Paid-up share capital stood at 2,831 Lakhs. Dividend pay-out during the year was 25,470 Lakhs compared to 8,706 Lakhs during the previous year. Debt increased to 3,693 Lakhs with higher utilisation for working capital limits as in March 2026. Treasury investments and bank balances have ballooned to 77,145 Lakhs from 27,615 Lakhs as in March 2025.

Consolidated Statement of Profit and Loss

Consolidated Revenue from Operations increased 77% to 4,29,091 Lakhs and Total Income increased 8.3% to 4,478.66 Lakhs. Consolidated EBITDA was lower by 4.1% at 1,90,519 Lakhs against 1,98,678 Lakhs. Consolidated PBT was 1,50,207 Lakhs versus 1,60,849 Lakhs for FY 2025. Consolidated PAT was 1,03,852 Lakhs against 1,43,400 Lakhs — lower primarily on account of the tax applicability for power division at MEL (15% effective rate) and the non-cash deferred tax provision arising from the Zambian Kwacha appreciation.

Consolidated Balance Sheet

Consolidated Reserves stood at 8,71,698 Lakhs, an increase by 15.0% compared to March 2025 with the retaining of profits made with the Company except for dividend payout made by the Company and MEL.

Long term debt increased to 2,17,325 Lakhs with the project loans of MELs 300 MW thermal plant and MSELs 100 MW solar plant. Deferred tax liabilities increased by 103% to 59,665 Lakhs because of appreciation of Zambian Kwacha.

Current borrowings have reduced to 4,767 Lakhs because of repayment of shareholder loans by MEL to its sponsors.

Key Ratios (based on Standalone and Consolidated Financial Statements)

Particulars	Standalone	Consolidated
	2025-26	2024-25	Variance %	2025-26	2024-25	Variance %
EBITDA Margin	31.35%	31.28%	0.2%	42.54%	48.05%	-11.5%
PBT Margin	29.72%	29.25%	1.6%	33.54%	38.90%	-13.8%
PAT Margin	40.64%	23.42%	73.5%	23.19%	34.68%	-33.1%
EPS - Basic ()	32.19	14.54	121.4%	27.80	37.63	-26.1%
Debt-to-Equity Ratio	0.009x	0.006x	50.0%	0.21x	0.09x	133.3%
Current Ratio	6.64x	5.00x	32.8%	7.62x	5.98x	27.4%
Return on Capital Employed (ROCE)	26.49%	14.16%	87.1%	13.00%	17.18%	-24.3%
Return on Equity (ROE)	23.08%	11.60%	99.0%	10.29%	16.17%	-36.4%
Debtors Turnover	10.24x	7.74x	32.3%	3.18x	1.96x	62.2%
Inventory Turnover	2.10x	1.67x	25.7%	1.93x	1.72x	12.2%
Interest Coverage	495.21x	202.18x	144.9%	126.90x	63.15x	101.0%

Explanation of significant changes (where variance exceeds 25%)

Standalone

• PAT margin, EPS, Return on Average Capital Employed (ROCE), Return on Average Equity (ROE) have increased by 25%+ with the increase in revenue and profit from higher sales volumes, increased dividend income and exceptional item

• Debt to Equity ratio deteriorated to 0.009x with higher working capital facilities utilisation

• Current ratio improved to 6.64x with the overall increase in current assets majorly financial investments and slight reduction in current liabilities

• Debtors turnover ratio improved to 10.24x with the increase in turnover and marginal reduction in debtors

• Inventory turnover ratio improved with higher cost of goods sold and sales

• Interest coverage ratio more than doubled because of lower finance cost and increased profit

Consolidated

• PAT margin, EPS, ROCE and ROE have reduced with the reduction in profit made owing to increased tax Liabilities under MEL

• Debt equity ratio movement is substantial with the drawl of debt under MEL and MSEL for the projects under development

• Current ratio improved to 7.62x with the overall increase in current assets majorLy financial investments

• Debtors turnover ratio improved by 62.2% with the increase in turnover and reduction in receivables at MEL

• Interest coverage ratio more than doubled because of lower finance cost

Change in Return on Net worth

• The standalone return on Net worth for the year was 23.08% Vs 11.60% for FY2025 while the consolidated return on Net worth was 10.29% compared to 16.17% for the previous year. Standalone return % almost doubled over last FY because of increase in revenue and profit from higher sales volumes, increased dividend income and exceptional item.

• Consolidated return % has decreased with the reduction in profit made owing to increased raw material, personnel costs and tax liabilities under MEL.

Update on Human Resources and Industrial Relations

Navas Human Resources commitment is rooted in the Companys perseverance and the leaderships forward-looking vision—constantLy seeking growth opportunities while reinforcing the sustainability of its core businesses. These dedicated efforts are ongoing, driven by the Companys unwavering mission to enrich Lives in the countries and communities where it operates.

Work Culture

Guided by its vision, "To build a respected global business that delivers sustainable growth and value for our stakeholders while enriching lives in the countries and communities we serve" the Company remains committed to developing and empowering its human capital as a key driver of long-term success. During the year, the Company continued to strengthen its people-centric practices through initiatives such as the recategorization of young professionaLs, town haLL meetings that foster transparent communication and promote work-life balance, employee rewards and recognition programs, cross-functional project opportunities, and a range of empLoyee engagement activities, incLuding famiLy gatherings. These initiatives demonstrate the Companys agility in responding to evolving business needs while fostering an inclusive, collaborative, and high-performance work cuLture. By investing in its peopLe and uphoLding its core vaLues, the Company continues to reinforce its commitment to sustainabLe growth and Long-term vaLue creation.

Capacity & Capability Building

The Companys expansion into new horizons and geographies, combined with its growing presence across multiple continents, has accelerated the adoption of technology and highlighted the need to enhance knowledge, skills and capabilities. Towards strengthening the capabilities in execution of these projects, Nava has remained committed to sourcing niche talent from key markets, offering growth opportunities to homegrown professionaLs, nurturing existing taLent and fostering synergy among a LL employees - forming the cornerstone of its mission to build a robust Leadership pipeline.

The Leadership pipeLine for key and criticaL positions is being systematicaLLy deveLoped through weLL-structured career deveLopment and succession pLanning initiatives. These efforts incLude identifying high-potentiaL internaL successors and bringing in LateraL taLent where needed to strengthen Leadership capacity. EmpLoyees are aLso encouraged to pursue additional qualifications and certifications to support their career growth and readiness for expanded responsibilities.

To sustain the Companys cuLture and retain criticaL expertise, Nava promotes internaL mobiLity across domestic and internationaL Locations. This approach not onLy fosters professionaL growth but aLso ensures that vaLuabLe knowLedge and unique experiences remain within the organization, contributing to its Long-term success.

During the year, the Company undertook significant initiatives to align its human resource policies, compensation structure, and employee benefits framework with the evolving requirements of Indias New Labour Codes. These proactive measures are intended to enhance regulatory readiness while ensuring that the Companys compensation and benefits remain competitive, equitable, and sustainable. The Company remains committed to implementing statutory reforms in a manner that effectively balances regulatory compliance, employee well-being, and Long-term business objectives.

Diversity

Nava is an equaL opportunity empLoyer that activeLy encourages and promotes a diverse and incLusive workpLace cuLture. To ensure representation from across the country, recruitment is carried out in aLL regions without gender-based discrimination, whiLe aLso aLigning with specific pLant requirements. To re-emphasize this, in some of the key and criticaL positions, we have women empLoyees in Leadership and manageriaL cadres, who are aLso contributing significantLy. Diversity at various pLant Locations is further supported through the engagement of contractors and Labour gangs from different parts of the country, incLuding the hiring of LocaL taLent. This approach not onLy enriches our workforce but aLso fosters stronger reLationships and coordination with LocaL bodies and stakehoLders.

The Organization maintains a healthy age profile among employees, contributing to a dynamic mix of experience, innovation, and energy across all functions.

Performance Management Process

The performance management process at Nava has always followed a consultative approach, fostering open dialogue between employees and management. These discussions consistently help identify both strengths and areas for development, enabling targeted growth. The platforms and support provided for continuous improvement empower employees to unlock their full potential and embrace on-the-job learning as an integral part of their professional journey.

Employee Retention

Navas employee retention strategy focuses on seamless integration, career growth opportunities, employee-friendly HR policies, and a strong Rewards & Recognition framework. Integration begins with well-structured induction programs and suggestion schemes, ensuring that new employees are smoothly assimilated into the Companys culture and operations. Employees assigned to their respective positions (either at plant / offices) are effectively integrated into their respective functions with a time bound induction program, promoting a sense of belongingness, orientation and the role requirements.

To strengthen long-term employee commitment and recognise sustained high performance, the Company introduced a Restricted Stock Unit (RSU) program for select high-performing employees and critical talent. By aligning employee interests with the Companys long-term growth and value creation objectives, the program fosters a stronger sense of ownership, enhances employee engagement, and serves as an effective tool for attracting, motivating, and retaining key talent. The RSU program complements the Companys broader philosophy of recognizing merit, rewarding performance, and developing future leaders from within the organization, while reinforcing a culture of accountability and long-term value creation.

Our HR policies are continuously evolving to align with the changing needs of the workforce and the industrys best practices. This employee-centric approach combined with genuine appreciation and engagement has significantly contributed to talent development, retention and reduced attrition. Ongoing efforts, including regular HR surveys, are undertaken to identify areas for improvement and to enhance employee experience. These initiatives reinforce our commitment to making Nava a great place to work.

Industrial Relations: The Company has an impeccable record in terms of maintaining harmonious industrial relations. The year gone by too did not lose a single man day on account of any industrial strife / disturbance.

The number of permanent employees on the rolls of the Company stood at 573 (1,249 across all the Companies of the Group globally) as on March 31, 2026.

Looking Ahead

FY 2025-26 demonstrated the strength of Navas diversified platform, the discipline of its capital allocation and the resilience of its operating businesses. Strong standalone performance, the recovery of long-standing receivables, the maiden upstream dividend from Maamba Energy, the conversion of Odisha capacity to IPP, the medium term PPA, the first commercial avocado harvest and the highest-ever dividend declaration together marked a meaningful year of progress.

With the under-construction projects execution in well advanced, FY 2026-27 will be a year of further milestones. The Company remains committed to building strong, sustainable and future-ready businesses through disciplined execution, prudent capital allocation and long-term value creation.

Cautionary Statement

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations, plans, strategies or outlook may constitute forward-looking statements within the meaning of applicable securities laws and regulations. These statements are based on certain assumptions and expectations of future events and are subject to risks and uncertainties.

Actual results may differ materially from those expressed or implied due to various factors including, but not limited to, changes in global and domestic economic conditions, demand-supply dynamics, commodity and energy prices, raw material availability and costs, regulatory and policy changes, project implementation timelines, operational risks, geopolitical developments, foreign exchange movements, interest rate trends, environmental and climate-related factors, competitive intensity and other external risks affecting the Companys businesses in India and overseas.

The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements on the basis of subsequent developments, information or events, except as may be required under applicable laws and regulations.

The ratio of the remuneration of each director to the median employees remuneration and other details in terms of subsection 12 of Section 197 of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014:

Requirements	Disclosure
	Name of the Director	Ratio
	Mr. D. Ashok, Non-Executive Chairman	137.83x
	Mr. P. Trivikrama Prasad, NED	137.83x
	Mr. GRK Prasad, ED	62.55x
The ratio of the remuneration of each I director to the median remuneration of the employees for the financial year	Mr. Ashwin Devineni, MD & CEO	Not applicable
	Mr. Nikhil Devineni, ED	228.56x
	Mr. Kode Durga Prasad, Director	2.69x
	Mr. GP Kundargi, Director	2.13x
	Dr. A. Indra Kumar, Director	2.45x
	Mrs. B. Shanti Sree, Director	2.37x
	Mr. Mwelwa Chibesakunda, Director	2.03x
	Name of Director	% increase in remuneration
	Mr. D. Ashok, Non-Executive Chairman	Nil
	Mr. P Trivikrama Prasad, NED	Nil
	Mr. GRK Prasad, ED	4.6
	Mr. Ashwin Devineni, MD & CEO	Not applicable
II The Percentage increase in remuneration of each director, CFO, CEO, CS in the financial year	Mr. Nikhil Devineni, ED	102.7
	Mr. Kode Durga Prasad, Director	100* / 66#
	Mr. GP Kundargi, Director	100* / 55#
	Dr. A. Indra Kumar, Director	100* / 69#
	Mrs. B. Shanti Sree, Director	100* / 59#
	Mr. Mwelwa Chibesakunda, Director	100* / 354#
	Mr. KVS Vithal, CFO (up to 03.03.2026)	Not applicable
	Mr. B Srinivasa Rao, CFO (w.e.f. 04.03.2026)	Not applicable
	Mr. VSN Raju, CS & VP	8.4
The percentage increase in the median III remuneration of employees in the financial year
	The median remuneration of the employees increased by 6.2%
IV The number of permanent employees on the rolls of the Company Average percentile increase already	There were 573 permanent employees on the rolls as on March 31, 2026.
V made in the salaries of employees other than the managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration;	The average percentage increase already made in the salaries of employees other than managerial personnel was 10.2%. The ratio of percentile increase in salaries of employees and managerial personnel is 1:6.75, which indicates that revision in the managerial personnel salaries is attributable to the managerial commission paid to Mr. Nikhil Devineni.
VI Affirmation that the remuneration is as per the remuneration policy of the Company	Yes, it is confirmed that the remuneration is as per the remuneration policy of the Company

* includes only commission and does not include sitting fees # includes sitting fee and commission