Nava Ltd Management Discussions

Company Overview

Nava Limited is a diversified Global conglomerate with an expanding global footprint and established leadership in ferro alloys and thermal power generation. Headquartered in Hyderabad, the Company operates across India, Zambia, and Southeast Asia, reflecting its transformation into a multi-continental business group. Over five decades, Nava has built a resilient and future-focused portfolio spanning energy, mining, agriculture, healthcare, and operations & maintenance (O&M) services.

In FY 2023–24, the Company achieved a long-term debt-free status at both standalone and consolidated levels, resulting in significant interest cost savings and strengthening its financial position. With a robust balance sheet and strong cash flows, Nava is poised to implement a calibrated capital expenditure plan of up to USD 750 million over the next few years. These investments aim to enhance core capabilities in Energy, Agriculture and Metals, while also supporting strategic expansion into high-growth adjacencies.

This report presents the Managements perspective on external factors affecting the Companys businesses, alongside strategy, operational and financial performance, key developments, risks and opportunities, and the adequacy of internal controls. It should be read in conjunction with the Companys standalone and consolidated

Annual Report.

Global Economic Overview and Outlook

The global economy demonstrated moderate resilience over the past year, navigating persistent macroeconomic and geopolitical challenges. Despite tight monetary conditions, elevated debt levels, and ongoing conflicts in Ukraine and the Middle East, global growth remained relatively stable at an estimated 3.3% in 2024, although a slowdown was observed in several Emerging Markets and Developing Economies (EMDEs).

Geopolitical instability particularly the continuing Russia Ukraine war, the Israel Hamas conflict, and recently heightened tensions involving Iran—continues to disrupt global economic stability. In parallel, trade tensions between major economies, notably the United States and China, further exacerbate uncertainty. Additionally, climate change policies and evolving regulatory frameworks are reshaping investment patterns across industries worldwide.

Global inflation has continued on a downward path, with headline inflation projected to ease to 4.3% in 2025, aided by the anticipated normalisation of supply chain disruptions. In response to easing inflationary pressures and weakening demand, major central banks led by the US Federal Reserve have initiated significant interest rate cuts to support economic activity and growth.

However, the recent intensification of trade tensions, particularly unilateral tariff measures by the United States and elevated levels of policy uncertainty, are expected to have a substantial dampening effect on global economic performance. As a result, the International Monetary Fund (IMF) has revised the global growth forecast downward to 2.8% in 2025. The IMF notes that the negative effects of trade policies are being felt across most regions, with the United States and China expected to experience the sharpest impacts. These tariffs may also fuel inflationary pressures in the US, potentially complicating future interest rate decisions by the Federal Reserve.

Beyond trade policy concerns, geopolitical risks remain elevated. Ongoing conflicts in Eastern Europe and the Middle

East, coupled with global economic uncertainties, are expected to exert downward pressure on commodity prices and may contribute to cautious investor sentiment in the near term.

IMF Regional Growth Forecasts
Region	2024 (Est.)	2025 (Proj.)
World Output	3.3%	2.8%
Advanced Economies	1.8%	1.4%
US	2.8%	1.8%
Emerging Markets	4.3%	3.7%
China	5.0%	4.0%
India	6.5%	6.2%

While there are emerging signs of stabilisation, the global economy remains on a fragile path—highly contingent on prudent fiscal policies, geopolitical de-escalation, and coordinated efforts to contain inflationary and trade-related pressures to ensure a stable and sustainable recovery.

Indian Economic Overview and Outlook

India continues to be a standout performer among major economies, demonstrating strong macroeconomic fundamentals amid robust domestic demand. The Indian economy is estimated to have recorded a growth of 6.5% in FY 2024-25, on top from a strong 9.2% growth in the previous year. Growth was slower in the first half of the year, with the election-related code of conduct slowing down public capex along with the elevated food inflation. Growth had recovered in the second half of the year.

Retail inflation eased to 4.6% in FY 2024-25 opening the space for policy rate cuts by Reserve Bank of India (RBI).

Liquidity conditions that had tightened in early 2025 have eased with a slew of liquidity measures by the RBI.

The countrys economic momentum has been underpinned by a confluence of factors: resilient private consumption, steady urban demand, a strong capex push by the government, and sustained inflows into infrastructure and logistics sectors. The Production Linked Incentive (PLI) schemes has successfully attracted investments and stimulated production across various industries of electronics, renewable energy, and specialty chemicals, supporting the manufacturing revival and job creation.

Indias medium-term outlook remains favorable, supported by demographic advantages, expanding infrastructure, digital adoption, and increased formalization of the economy even though the overhang of global headwinds remains. Consumption will be buoyed by personal income tax cuts, easing food inflation, positive monsoon outlook and the RBIs rate cuts. According to IMF projections, Indias GDP is expected to grow at 6.2% in 2025, maintaining its status as the worlds fastest-growing major economy. The RBI remains more optimistic, projecting GDP growth at 6.5 - 7.0% for FY 2025–26.

India also stands to benefit from global supply chain realignments, particularly as global firms seek to diversify manufacturing with the strategy of China Plus One. Union budget has demonstrated its commitment to infrastructure with an allocation of INR 11.21 lakh crore aiming to propel "Make in India" initiatives. Key downside risks include geopolitical uncertainties, global trade policies and supply chain disruptions. Overall, Indias economic outlook remains strong, driven by robust domestic demand, policy support, and sectoral resilience. Improving trade relations with the developed economies will provide the requisite impetus to the economy.

(Source: IMF World Economic Outlook April 2025; RBI MPC Statements; Ministry of Finance, Government of India)

Ferro Alloys Industry Scenario

The global ferro alloys industry had witnessed slight improvement in demand and realisations in 2024. The market remains anchored by steel production, but regional disparities have emerged. While Asia Pacific led by India continues to drive demand, mature markets in Europe and North America have been impacted by subdued construction, high energy costs, and the lingering effects of geopolitical tensions affecting both supply chains and costs.

According to IMARC and Straits Research, the global ferro alloys market was USD 57 billion in 2024 and is projected to grow at CAGR 5.9% through 2033. Growth is underpinned by rising steel production in emerging economies, particularly across Asia, where infrastructure development and industrial expansion are strong. Europe and North

America are growing more slowly, constrained by inflation, financing challenges, and stringent environmental regulations.

Manganese ore prices recorded massive fluctuations in 2024 following suspension of operations at South32s manganese ore facilities in Australia, though the impact was for a shorter period but the prices of Manganese ore and Silico Manganese Alloys seen much variations. Three factors which would affect the ferro alloys market in near term are:

• Steel output and energy prices

• Geopolitical tensions and demand pick-up in Europe

• Volatility in Manganese ore prices

In India, recent data confirms robust momentum in both steel and alloy markets. Domestic crude steel production rose from 127 million tonnes in FY 2022 23 to 152 million tonnes in FY 2024 25, with finished steel output reaching approximately 147 million tonnes and consumption near 153 million tonnes. This growth has sustained demand for silico manganese and ferromanganese, the dominant ferro alloys used in Indian steelmaking.

World Steel demand (MnT)

Steel demand (MnT)

	2022	2023	2024	2025 (E)	y-o-y change*
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	374	358	349	347	-0.7%
Economies
World ex-china	851	874	887	907	2.2%

 

Key metrics of Indian Steel (MnT)
	FY 2022-23	FY 2023-24	FY 2024-25
Crude Steel Production	127.2	144.3	152.0
Finished Steel Production	123.2	139.2	146.6
Import*	7.0	9.6	10.5
Export*	8.3	8.5	6.3
Consumption	119.9	136.3	152.0
Consumption per capita (kg)	86.7	97.7	107.8

World finished steel demand and crude steel production declined marginally by 2% and 1%,respectively, in 2024. In the last five years, global steel demand has moved sideways. China which accounts for nearly 50% of the world steel consumption, recorded a 5% decline in 2024 mainly due to the structural challenges in the real estate industry. India has been a key driver of steel demand growth in recent years. Exports from China to the rest of the world were at high which resulted in protectionist measures by different countries. Global steel demand is projected to grow marginally in 2025 after three consecutive years of decline. While Chinas steel demand could marginally decline in 2025, robust growth in steel demand is expected in India, Turkey and MENA region. While the trade related concerns could weigh on the steel demand outlook in many countries, overall at a global level demand is likely to be marginally positive. In India, steel demand is supported by rising demand for consumer durables and capital goods. Additionally, government initiatives, including Production-Linked Incentives (‘PLI) schemes and increased investments in infrastructure and manufacturing, have played a crucial role in boosting steel production and consumption. Steel prices in India are under threat from Chinese imports and the recent relief of safeguard duty of 12% wef 21 Apr 2025 for 200 days has been a partial relief to the Indian Steel Industry.

Power Sector Industry Scenario

In FY 2024 25, global electricity demand surged to new highs, driven by continued electrification across major economies, the expansion of data centers, cooling requirements and electric vehicle usage. According to the IEA, electricity consumption is now projected to grow at approximately 3.4% per year through 2026, up from around 2.2% in 2023, with India set to lead among major economies, growing over 6% annually through 2026. Meanwhile, renewables (including solar, wind, hydro, and biomass) generated nearly one-third of global electricity in 2024, marking a milestone as low-emission sources accounted for nearly 80% of the net growth in generation.

India ranks as the third-largest producer and consumer of electricity globally, with an installed capacity of 475.21 GW as on Mar 31, 2025. With a diverse energy mix spanning conventional sources such as coal, natural gas, and hydro, as well as renewable options like solar, wind, and biomass, India is steadily building a sustainable energy future. Driven by population growth, increasing electrification, and rising per capita electricity consumption, the nations energy demand is on a continuous upward trajectory.

Share of renewable energy is being increased y-o-y in the global power generation mix with the push from governments and industry to battle the global carbon emissions and the climate change. While renewables made significant strides, thermal power continued to underpin Indias grid stability. Coal-fired stations, though gradually declining in share, still supplied around 70% of electricity. Gas-based capacity, though lower at around 20 GW by April 2025, played a critical role in meeting peak demand and balancing intermittent solar and wind supply.Z

Power Demand and Supply in India

Regulatory and policy reforms in the sector are critical to help avert the issues surrounding the power value chain alongside creating an enabling environment for increased investments in the sector. Some of the key transformative steps taken in the recent past are:

• Revamped Distribution Sector Scheme

Notification of the Electricity Distribution (Accounts and Additional Disclosure) Rules, 2024

• Constitution of Group of Ministers for addressing issues related to Viability of Distribution Utilities

• Central Financial Assistance towards equity participation by the State Governments for the development of HEPs in North East Region

Modification of the Scheme on Budgetary Support for the Cost of Enabling Infrastructure for HEPs

• Push for adoption of Electric Vehicles (EVs)

Indias power industry will continue to grow driven by increasing demand, policy reforms. The countrys economic expansion, rapid urbanisation, and industrialisation are key factors pushing energy requirements to unprecedented levels.

Companys Performance Overview

Financial highlights

The key financial results of the Company for FY 2024-25 are hereunder:

		Standalone		Consolidated
	FY 2024-25	FY 2023-24	% growth	FY 2024-25	FY 2023-24	% growth
Total income	1,80,020	1,54,757	16.3%	4,13,517	3,95,503	4.6%
EBITDA*	56,319	33,251	69.4%	1,98,678	1,85,586	7.1%
Profit after tax	42,169	21,901	92.5%	1,43,400	1,25,608	14.2%
Earnings per share	14.54	7.55	92.6%	37.63	32.52	15.7%
Debt	2,344	941	149.1%	88,839	40,861	117.4%
Cash & cash equivalents	11,091	11,092	(0.00%)	98,942	26,583	272.2%
Excess funds invested	16,524	30,891	(46.5%)	101,244	48,751	107.7%

* excluding discontinued operations

The Companys consolidated income and PAT of INR 413,517 Lakhs and INR 143,400 Lakhs respectively are the highest ever recorded with a growth of 4.6% and 14.2% respectively. The operational revenue grew by 4.3% with the higher realisations in Metals division, higher energy sales by the Indian Power Plants. The PAT increased mainly due to the savings in interest costs with the repayment of the project finance and shareholder loans under Maamba

Energy Limited.

The Companys standalone operational revenue grew by 9.8% to INR 161,203 Lakhs mainly on account of higher realizations in Ferro Alloys and incremental power sales from 114 MW power plant. Other income recorded was INR

18,817 Lakhs with the dividend income of INR 11,432 Lakhs from the subsidiaries. Standalone PAT recorded growth of 92.5% with ferro alloys division making PBT of INR 2,693 Lakhs Vs (INR 7,066 Lakhs) loss for FY24 and increase in dividend income.

Maamba Energy Limiteds (MEL) 300 MW power plant continue to operate at high level of operational parameters and maintained its revenue and profitability contribution to the consolidatedfinancials. The construction of Phase II 300

MW power plant has commenced during the year with rapid progress being made and the increase in consolidated debt is because of term loans drawn for this project.

The mining division in Zambia has sustained its revenue while savings in mining and finance costs resulted in growth in profitability.

In the agri-business segment, Nava Avocado Limited continued with planned plantation program and groundwork for the packhouse construction. The recently revived Sugar project under Kawambwa Sugar Limited (KSL) is making strides in sugarcane plantation and irrigation system while the planning activities for the sugar factory, distillery and co-generation power plant are underway.

Segment wise performance: METALS DIVISION:

The details of plants and operating capacities are:

Location	Paloncha, Telangana	Dhenkanal, Odisha
Capacity	4 smelters – 125,000 MTPA	2 smelters – 50,000 MTPA
Products	Silico Manganese and Ferro Silicon	Silico Manganese

For the year, Operational revenue of the Metals division increased by 6.4% to INR 92,877 Lakhs with the production being for full year at Odisha Operations while there was a production loss during the previous year with the accident to Raw Material handling system. With the shift in production of Ferro Silicon from 2 furnaces at Telangana Operations, the production of Silico Manganese Alloys has come down by 29.1%.

Profit before tax for the year turned positive to INR 2,693 Lakhs Vs INR (7,066 Lakhs) for FY24 with the increase in realization prices and higher sales quantities. Further higher realizations from the export of Ferro Silicon Alloys aided profitability.

The quantitative details of the division are:

Particulars	FY 2024-25	FY 2023-24	YoY%
Production MT
Silico Manganese	104,165	104,963	-0.8%
Ferro Silicon	13,490	2,380	466.8%
Sales MT
Silico Manganese	94,686	113,942	-16.9%
Ferro Silicon	12,162	1,345	804.1%

Silico Manganese: Production was marginally lower by 0.8% with the shifting of 2 furnaces at Telangana Operations to Ferro Silicon production for major part of the year. Sales quantity was lower by 16.9% because of stock transfer of

10,000 MT made for export market while the billing is to happen in FY26. Average realisation prices have increased during the year while export market gave decent margins, the domestic market witnessed break-even prices. At Odisha Operations, production made was 43,220 MT Vs 18,987 MT for FY24, with the full year of production. Production optimisation improvements were continued for Manganese bricks and reductants mix resulting in savings. A sudden spurt in the prices of Manganese ore due to accident to South32s manganese ore facilities in Australia had increased the production costs for large part of the year with the inventory hang of material procured at elevated prices. Through there was an increase in Silico Manganese Alloys prices but lasted for a brief period only.

Though Manganese ore prices have decreased in line with the market trend, the costs of other major raw materials – reductants and power have been in upward trend Y-o-Y. Owing to decrease in coal supplies from Singareni Collieries and the increase in coal prices, the cost of captive power is increasing y-o-y at Telangana Operations trending with State Utility tariffs. The increase in demand from export market and hope of increase in sale prices post easing of geopolitical tensions provides a positive outlook for the Manganese Alloys in the near term.

Ferro Silicon: At Telangana Operations, the Company produced Ferro Silicon from 2 furnaces. The higher realizations from the export market has prompted the company to convert 2^nd furnace also for Ferro Silicon production during the year. The Ferro Silicon operations are ably supported by captive Quartz mining. Production made during the year

13,490 MT Vs 2,380 MT for FY24 while the sales quantity was 12,162 MT Vs 1,345 for previous year.

ENERGY DIVISION:

Nava has operating capacity of 734 MW of which 20 MW is idle and the operating plants are spread across the states of Telangana and Odisha in India and the country of Zambia. Under standalone, 204 MW capacity is earmarked for captive consumption in ferro alloys.

Company	Location	Capacity	Plant Type
	Paloncha, Telangana	114 MW	CPP
	Dhenkanal, Odisha	150 MW	90 MW – CPP
Nava Limited
			60 MW – IPP
	Dharmavaram, Andhra Pradesh	20 MW	IPP (Idle)
Nava Bharat Energy India Limited	Paloncha, Telangana	150 MW	IPP
Maamba Energy Limited	Maamba, Zambia	300 MW	IPP

Standalone

Increased demand from manufacturing activity and economic growth has made many State Utilities come up with Short-term PPAs for most part of the year. This has helped in achieving higher operational parameters and increased profitability at both the locations of Telangana and Odisha. Notable turnaround during the year is 114 MW CPP operating at higher PLF of 66.1% Vs 32.9% for FY24 with the reduction in coal costs and availability of bilateral contracts. Higher realizations during the peak hours has helped in incremental power sales being 179.0 MUs Vs 20.1 MUs for FY24. Coal costs were brought down with the diversification of coal procurement from Coal India Limiteds subsidiaries and private mines. Further a 32 MW unit is being converted from CPP to IPP for overcoming the restrictions under captive power plant rules and for being eligible for buying coal in spot e-auctions.

150 MW power plant at Odisha Operations has operated at PLF of 71.5% Vs 76.5% for FY24 with the availability of bilateral contracts throughout the year. PLF of captive unit was lower for complying with captive consumption rules which is being addressed by converting 60 MW CPP into IPP mode. Competitive marginal cost and higher availability have helped the 150 MW power plant in contributing significantly to the Standalone profit.

Standalone financial performance

Nava Bharat Energy India Limited (NBEIL)

NBEILs 150 MW power plant continued its remarkable performance by operating at 69.9% PLF during the year Vs 63.7% PLF for FY24, with the increased demand for power, availability of bilateral contracts and higher tariffs during peak hours. The allotment of 400,000 MT of coal from Singareni Collieries Company Limited under Shakti B-III scheme has helped the company in lowering coal costs aiding the increase in profitability. During the year, NBEIL repaid its inter group debt of 25.4 Crore and has become long-term debt free. The reduction in finance costs has increased the competitive participation to sell power at lower tariffs.

Maamba Energy Limited, Zambia—Energy & Mining:

Maamba Energy Limited (MEL – formerly Maamba Collieries Limited), a step-down subsidiary in Zambia operates

Zambias only integrated coal-fired 300 MW power plant and Zambias largest coal mine. MEL has signed 20-year

Power Purchase Agreement (PPA) with the state utility, ZESCO Limited and supplying power since 2016. Further MEL is a member of Southern Africa Power Pool (SAAP) allowing it to sell the excess power over it.

During the year, MEL power plant maintained its high operational parameters of declared plant availability of 90.1%, PLF of 89.8% Vs 89.7% and 89.9% respectively for FY24. Power generation was 2,360 MUs Vs 2,369 for FY24. The power plant operated continuously excepting for the planned maintenance activities which helped in sustaining the consolidated financial performance. Against the arbitration award of US$ 518.1 Million, MEL realized US$ 357.5 Million as in March 2025, being 69% of the receivable and further received US$ 55.0 Million subsequently. During the year, MEL utilized the Arbitral Award payments and internal accruals to repay the shareholder loans to both the sponsors. During the year MEL paid interest arrears of US$ 55.5 Mn and shareholder loans of US$ 120.0 Mn to both the sponsors. The shareholders loans were fully repaid by MEL in April 2025.

Mining divisions external sales dropped by 9.3% to 442,728 MT Vs 487,776 MT for FY24 because of lower demand from industrial consumers owing to power outages. Further realizations dropped by 12.1% owing to competition from a nearby mine.

MEL Financial performance:
Particulars	FY 2024-25	FY 2023-24	Y-o-Y %
Operational Revenue	203,302	199,543	1.9%
	(US$ 240.4 Million)	(US$ 241.0 Million)
Other income	4,078	15,544	-73.8%
	(US$ 4.8 Million)	(US$ 18.8 Million)
Total Revenue including	207,380	215,087	-3.6%
exceptional items	(US$ 245.2 Million)	(US$ 259.8 Million)
EBITDA	131,413	143,339	-8.3%
	(US$ 155.4 Million)	(US$ 159.1 Million)
PAT	97,646	89,087	9.6%
	(US$ 115.5 Million)	(US$ 107.6 Million)

The 300 MW power plant made operating revenue of INR 186,176 Lakhs (US$ 220.1 Million), EBITDA of INR 110,528 Lakhs (US$ 130.7 Millon), PBT of INR 81,404 Lakhs (US$ 96.3 Million) for the year against the corresponding numbers of INR 177,821 Lakhs (US$ 214.8 Million), INR 106,902 Lakhs (US$ 129.1 Million) and INR 78,353 Lakhs (US$ 94.6 Million) for FY24. For the monies realized against the Arbitration award from ZESCO, expected credit loss of INR 14,494 Lakhs

(US$ 17.1 Million) was reversed during the year Vs INR 19,458 Lakhs (US$ 23.5 Million) for FY 24, in line with accounting standards.

Profit increased, despite having no exceptional gain as in previous year, with the reduction in finance costs on account of repayment of project finance and shareholder loans.

Coal Mining Operations

Mining operations reported margin degrowth in revenue at INR 45,458 Lakhs (US$ 53.8 Million) Vs INR 45,834 Lakhs (US$ 55.4 Million) because of decrease in external coal sales which was compensated by increase in transfer pricing to the power plant. Profit for the year grew by 51.5% to INR 16,266 Lakhs (US$ 19.2 Million) from INR 10,734 Lakhs (US$ 13.0 Million) for FY24 aided by savings in mining and finance costs.

Phase II 300 MW Power Plant

Construction of Phase II 300 MW power plant has gained momentum during the year. The project is being implemented with a capex outlay of US$ 400.0 Million while the debt of US$ 300.0 Million is tied-up for maximum portion. The project construction is progressing well with the planned commissioning of one unit by Aug 26.

100 MW Solar Power Plant

The group is developing 100 MW Solar Power project in Zambia under a new step-down subsidiary Maamba Solar Energy Limited. The estimated capex outlay of the project is US$ 90 Million with project commissioning target date of July 2026. The required technical studies have been completed and is in the process of identifying equipment suppliers. Power Purchase Agreement (PPA) with ZESCO Limited has been signed for 20 year period. The foray into renewable energy provides ample opportunities for capacity expansion in future with the availability of land and ease of project implementation.

Magnetite Ore mine in Zambia:

The exploratory studies involving geological mapping, geophysical survey and drilling etc were carried out whose reports suggested that the resource estimate was low and average Fe content was also moderate at 43% making the project economically unviable. MEL will decide on the mining license in due course.

THE HEALTHCARE DIVISION:

Healthcare is one of the fastest growing sectors with the demand for lifestyle treatments and diagnostic services growing exponentially. The healthcare sector is seen as promising in the long run, with many areas of medical treatments, distribution of medicines and apparatus, diagnostic services and other medical services.

During the year, the group had acquired the residual equity stake of 35.0% from the joint venture partner and amalgamated the step-down subsidiary Tiash Pte Limited into Nava Healthcare Pte Ltd (formerly Nava Holding Pte Ltd).

Compai Pharma is a medical distribution Company with operations in Malaysia and Singapore. During the year, Compai Pharma received termination fee of ~USD 1.2 Mn from Pharmacosmos A/S, Denmark for terminating Monofer distribution unilaterally. Presently the focus is on the distribution of Women Healthcare products and have since added 5 products in Malaysia and 2 products in Singapore for exclusively distribution.

The Iron Suites Medical Center is an integrative medical clinic in Singapore specializing in the treatment of iron deficiency, predominantly with IV iron and other lifestyle diseases. This center brings in professional practitioners on to one platform for a holistic approach to medical care.

The operating revenue of the healthcare division saw degrowth with the sales of newly launched products yet to pick-up. Required marketing initiatives have been taken up for popularizing the products.

AGRI-BUSINESS: Integrated Sugar Plant

Kawambwa Sugar Limited (KSL) has been allotted 10,000 Ha of land for growing commercial agriculture crops in Luena farm block in Zambia. The group has revived setting up of an integrated Sugar Plant of 2500 TCD, sugarcane plantation in 4500 Ha, 20 KLPD Distillery and 20 MW co-generation power plant with a capex outlay of around US$ 200 million.

Sugarcane nursery is ready for multiplication of the acreage and orders have been placed for Sugarcane Tissue

Culture plantlets, irrigation system etc. Land development works of 4500 Ha have started towards the end of financial year. Debt financing for the project is being worked upon with banks and financial institutions.

Avocado Plantation

Nava Avocado Limited (NAL) is developing one of the worlds largest Avocado farm with 400,000+ plants, to be planted by Mar 27 in four divisions. As in March 25, over 168,000+ avocado plants have been planted, and more than 12,000 plants are available in the nursery. Orders have been placed for another 100,000 trees, to be planted by Mar 2026.

Growth of the planted trees in both Divisions A and B is good and first revenue from the planted Avocado trees is expected in the season of Nov – Dec 25 and will increase gradually with the growth of trees. Planning activity for the state-of-the art packhouse and processing facility has completed while the construction works will start soon. Global Good Agricultural Practice (GAP) standards are being followed for safe and sustainable agriculture besides being eligible for sale in developed economies. With a target yield of 20–25 tonnes per hectare at peak maturity of the trees, the Company is building a high-margin, export-driven agriculture plantation. Total project investment is pegged at USD 45 million.

OPERATIONS & MAINTENANCE SERVICES:

Navas O&M capabilities are centered on its proven track record in running thermal power plants efficiently. The

Companys foray into Operations & Maintenance (O&M) services for power plants took its genesis with the service offering to MEL. The high operational parameters of MELs power plant is a testimonial to the O&M services being performed. The NAVA Group Companies have implemented a risk matrix approach, considering both on-site and off-site deliverables under the contract. This has helped MEL maintain optimal performance for its 300 MW power plant, taking into account local grid conditions and other limitations. During the year, the subsidiary Nava Energy Pte Ltd has been appointed as O&M Contractor for MELs Phase II 300 MW power plant.

MANGANESE ORE MINING:

To enable backward integration to Silico Manganese production in India and provide further value-added opportunities, the Company has got a Manganese ore mine of 360 sq km in Cote dIvoire allocated. The exploration studies are underway with the technical reports expected by Dec 2025.

OUTLOOK:

Nava enters the new financial year with a momentum of new projects under execution and a strong balance sheet.

Further well-positioned to accelerate growth across its core and emerging businesses. The Companys geographic diversity, robust liquidity, and prudent capital allocation provide resilience and the required foundation for the next phase of value creation. Focus remains on execution of committed projects — 400 MW Power capacity addition, Avocado plantation and Sugar project all in Zambia.

Metals:

Weak demand for steel in international market is expected to persist till the continuation of geopolitical tensions, trade barriers by the developed economies representing a downside risk to the metals and mining sector. Steel demand in India will continue to outpace other major steel-consuming economies in 2025 with a growth of 8 –

9%, driven by shift towards steel-intensive construction in the housing and infrastructure sectors along with better demand from engineering, packaging and other segments as per CRISILs report.

The trend of rising public capex on infrastructure is expected to continue along with private capex being supported by the governments production-linked incentive schemes, improving trend in capacity utilisation, strong balance sheets and easing monetary policy. The domestic market for ferro alloys is expected to be quite stable given the uptick in demand for steel amid increased manufacturing activity for local consumption and shift in manufacturing to India for export market. However, continued weak export market will continue to exhort pressure on the realizations in the domestic market.

The expected growth in steel consumption in India augurs well for ferro alloys industry. Further the availability of raw materials stocks procured at low prices and cost optimisation measures in ore and reductants mix will help the company in improving the realisations.

INDIAN ENERGY:

Indias focus on local manufacturing production-linked incentives and export-oriented industries, rising urbanisation, etc will continue to provide impetus for power demand implying higher tariffs for the sector. The low per capita consumption rate compared to the world average, provides huge opportunity for growth.

While the sector faces challenges of financial stress by State Utilities, higher AT&C losses, billing efficiency etc, the need for energy storage solutions present opportunities for innovation and investment. The pumped storage projects will play a crucial role in meeting the peak hours demand enabling more reliable and sustainable power supply. The proposed restructuring of both captive power plants in Telangana and Odisha into CPP and IPP shall address the issue of operating the power plants at optimal PLFs. The reduced finance costs and the availability of coal at base prices has increased the competitiveness of NBEILs 150 MW power plant.

Zambia Energy and Mining:

The huge power deficit in Zambia and Southern African nations provide an opportunity to operate the 300 MW power plant at full capacities other than during the required semi-annual maintenance shutdowns. The financial performance will improve further during the year with the reduction in finance costs owing to repayment of shareholder loans and reversal of ECL provision in proportionate to the receivables realization from ZESCO.

With the expected higher availability of power from the recently commissioned hydro plants in Zambia, MEL expects to maintain the targeted external sales of 40,000 – 50,000 MT per month to the industrial consumers. The competition from the nearby coal mine is driving the realisations lower which needs to overcome with the increased marketing efforts and pricing strategy.

Discontinued Operations

The Company is evaluating certain development options to monetize the land parcel in the Sugar division.

RISKS & MITIGATION:

The Company has implemented an Enterprise Risk Management (ERM) policy to effectively identify, evaluate, and address various operational, strategic, and regulatory risks. The framework includes regular risk assessments which are reviewed periodically by the Risk Management Committee to ensure ongoing oversight and timely intervention.

Risk Type	Risks Involved	Mitigation Strategy
Sector-specific and Market risks	• Performance of Steel Industry on which Ferro Alloys is dependent	• Close monitoring of macro-economic indicators and Steel Manufacturers
	• Creditworthiness and business continuity of the customers	• Sustained advocacy authorities
	Prolonged inflationary pressures	• Redistribution of sales mix at the geography/ segment level, to balance demand supply requirements
	• Lower demand in export market due to geopolitical risks
Commercial risk	• Non-compliance and renegotiations of prices	• Credit risk assessment of private customers, advocacy for enforcement of payment security mechanism of Letter of credit
	• Moderation of prices putting pressure on margins	• Mitigation through prudent operations management, resource optimisation and
	• Increase in freight rates where the supplies are on CIF basis	prudent bidding practices
Financial risk	• Availability of cost- effective capital: Availability of debt	• Balance between growth and deleveraging
	• Forex risk	Focus on driving operating efficiency and cash generation
	• Liquidation of idle assets	• Hedging for commodity & exchange variation
financial commitments linked to liquidation		No
		of idle assets
Business risk	• Availability of fuel for thermal plants at optimal cost	• Exploration of alternate coal and Manganese ore resources
	• Timely sourcing and availability of Manganese ore and reductants for Ferro Alloys	• Striving for back-end integration for Ferro Alloys with Manganese ore mining
Environment Risks	• Exposure to climate related rains, humidity, winds for Agriculture business	• Taking proactive measures in handling environmental hardships and insuring the plantation

 

Risk Type	Risks Involved	Mitigation Strategy
Community Risks	• Growing expectations of the communities proximate to our operating locations	• Commitment towards addressing societal challenges through Corporate Social Responsibility initiatives
	• Pressure of local communities due to concerns over emissions	• Multiple structured forums for dialogue with communities
Regulatory risk	• Customers reneging on contractual terms due to unfavourable situations	• Enforcement of contractual terms through representation and regulatory/judicial intervention
	• Non-compliance of regulatory /judicial orders by customers	• Contempt proceedings seeking early redressal of claim/appeal

Internal Control Systems and Their Adequacy

Navas internal control systems are robust and commensurate with the scale of operations. Independent audits, digitized process flows, and ERP-integrated controls ensure compliance and risk minimization. The Audit Committee actively reviews control mechanisms and corrective actions. These systems support governance, accuracy, and value preservation.

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

Financial Performance

The increase in ferro alloys realizations majorly in the export market has helped the company in revenue and profitability growth. The higher demand for power in India and the availability of bilateral contracts through the year has helped the Indian power plants operate at higher operational parameters. Further the power plant of MEL has sustained its operations while mining division had seen degrowth in external coal sales.

Standalone Statement of Profit & Loss

During the year, the company recorded total income of INR 180,020 Lakhs Vs INR 154,757 Lakhs for FY24, an increase by 16.3% with the higher realizations in ferro alloys and increased dividend income from the subsidiaries. EBITDA from continuing operations has increased at healthy rate of 69.4% to INR 56,319 Lakhs (margin of 31.3%) while the profit almost doubled to INR 42,169 Lakhs compared to previous financial year.

Standalone Balance Sheet

Shareholders Funds decreased to INR 360,816 Lakhs as on 31 March 2025 from INR 3,66,193 Lakhs as in March 2024 with the interim dividend payout and share buyback of INR 36,000 Lakhs carried out in March 2025. The ploughing of profits into the business has helped the Company in containing the decrease to shareholders funds. Debt increased to INR 2,344 Lakhs from INR 941 Lakhs with the increased utilisation of working capital facilities. Debt-to-Equity ratio was at 0.006x as in March 2025 (0.003x in March 2024).

Consolidated Statement of Profit & Loss

Total income grew by 4.6% to INR 413,517 Lakhs for the year being the highest ever compared to INR 395,500

Lakhs for FY24 with higher operational performance of NBEILs power plant. Decrease in materials cost and higher realisation prices have increased EBITDA to INR 198,678 Lakhs, an increase by 7.1% over the previous year. Further, EBITDA margins increased to 48.0% from 46.9% in the last year. With decrease in financial costs substantially under MEL, Net Profit reported was highest ever of INR 1,43,400 Lakhs a jump of 14.2% against 125,608 Lakhs in FY24.

Consolidated Balance Sheet

Shareholders Funds increased to INR 761,124 Lakhs as on 31 Mar 2025 from INR 690,878 Lakhs as in March 2024 with the retaining of profits made with the company except for dividend payout of 11,608 Lakhs. Debt increased to INR 88,839 Lakhs with the drawal of project finance loans for MELs Phase II 300 MW power plant. The shareholder loans were repaid by MEL to its sponsors. Debt-to-equity ratio was at 0.09x as in March 2025 Vs 0.05x in March 2024.

Key Ratios (based on Standalone & Consolidated Financial Statements)

		Standalone			Consolidated
Particulars	2024-25	2023-24	variance %	2024-25	2023-24	variance %
EBITDA Margin	31.28%	21.49%	45.6%	48.05%	46.92%	2.4%
PAT Margin	23.42%	14.15%	65.5%	34.68%	31.76%	9.2%
Return on Average Capital Employed	14.16%	8.06%	75.7%	17.18%	16.88%	1.8%
Return on Average Equity	11.60%	6.09%	90.5%	16.17%	16.28%	-0.7%
Debt to Equity Ratio	0.006x	0.003x	100.0%	0.09x	0.05x	80.0%
Debtors Turnover Ratio	7.74x	6.67x	16.0%	1.96x	1.31x	49.6%
Inventory Turnover Ratio	1.67x	1.88x	-11.2%	1.72x	1.95x	-11.8%
Current Ratio	5.00x	8.23x	-39.2%	5.98x	5.04x	18.7%
Interest Coverage Ratio	202.18x	47.02x	330.0%	63.15x	6.02x	949.0%

Detaivof significant changes (i.e., change of 25% or more as compared to the previous financial year) in key financial ratios, along with detailed explanations:

Standalone:

• EBITDA margin, PAT margin, Return on Average Capital Employed and Return on Average Equity have increased by more than 25% because of increase in revenue and profit of the Company with the higher realizations from

Ferro Alloys division and increased dividend income

Debt to Equity ratio deteriorated to 0.006x with the higher working capital facilities utilization

• Current ratio decreased to 5.00x as in March 2025 because of increase in statutory liabilities (TDS) payable pertaining to buyback made in Mar 2025

Interest Coverage ratio improved with the reduced finance costs and increased profit made.

Consolidated:

• Debt to Equity ratio and Interest Coverage ratio have improved with the repayment of shareholder loans by MEL

• Debtors Turnover ratio improved to 1.96x with the marginal increase in turnover and reduction in receivables at 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 the 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 work in," the Company has consistently nurtured its human resources to align with and contribute meaningfully to this aspiration. Initiatives such as the recategorization exercise for young professionals, townhall meetings promoting open communication and work-life balance, rewards and recognition programs, cross-functional project opportunities and various employee engagement interventions including family get togethers reflect the Companys adaptability to market demands. These efforts reinforce its continuous pursuit of improvement and its unwavering commitment to sustainable growth—anchored in its core values.

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 all 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 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.

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 labor 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.

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.

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 576 (1,126 across all the Companies of the Group globally) as on March 31, 2025.