Nilachal Carbo Metalicks Ltd Management Discussions

Founded in 2003, Nilachal Carbo Metalicks Private Limited has continued to strive and create a specialized space in the manufacturing of FAP grade Ultra & Low Phosphorus Low Ash Metallurgical Coke. Today, with years of experience in the industry we have built robust supply chain relationships with all major Ferro Chrome manufacturers as the leading manufacturers and suppliers of high-quality coke products.

Over the years the company established itself as major Ferro Alloys Grade LAM Coke / Nut Coke manufacturer based in Odisha and also build trust as reliable supplier of Low Ash Low Phos Metallurgical Coke, also produce Ultra Low Phos LAM Coke and recognised as a major player in supplying Metallurgical Coke Fines to all major iron ore pellets and sintering plants.

INDUSTRY OVERVIEW & TRENDS GLOBAL ECONOMY

The global economy in 2026 confronts a renewed challenge, this time from the outbreak of war in the Middle East at the end of February. The conflict arrived less than a year after the realignment of United States trade policy, with the transition to a new international trade system still underway, and it has inflicted humanitarian costs, damaged critical infrastructure, and disrupted maritime and air traffic in the affected region. Economies worldwide are exposed through higher commodity prices, second-order effects on inflation expectations, and risk-off sentiment in financial markets, with commodity & energy-importing emerging markets and developing economies as the most vulnerable. Further, currency depreciation compounds the impact of costlier energy and food.

As per the last International Monetary Fund (IMF) 2026 World Economic Outlook, the global economy entered the year on a firmer footing, expanding by an estimated 3.4% in 2025. Under the forecast, which assumes a relatively short-lived conflict, global growth is projected to slow to 3.1% in 2026 and 3.2% in 2027, below recent outcomes and well under the prepandemic average. Advanced economies are expected to grow by 1.8% in 2026 and 1.7% in 2027, while emerging market and developing economies are projected at 3.9% in 2026 before recovering to 4.2% in 2027. Global headline inflation is expected to rise from 4.1% in 2025 to 4.4% in 2026, before easing to 3.7% in 2027, with pressures concentrated in commodity-importing developing economies. The oil price, which averaged $67.74 per barrel in 2025, is assumed to rise to about $82 per barrel in 2026 as production and transport disruptions take hold Downside risks dominate the outlook. A longer or broader West Asia conflict, deeper geopolitical fragmentation, disappointment over productivity gains from Artificial Intelligence (AI) investments, or renewed trade tensions could weaken growth and destabilise financial markets, while elevated public debt and eroding policy buffers add to the vulnerability. In an adverse scenario of prolonged energy disruption, global growth is expected to fall to 2.5% in 2026 and inflation rises to 5.4%. In a severe scenario, growth slows to 1.8% in 2026, close to global recession territory, with inflation reaching 5.8%, before output growth remains subdued at 2.2% in 2027.

Central banks face a more complex trade-off between supporting growth and containing renewed inflation, and the scalingup of defence spending prompted by rising geopolitical tensions. While being supportive of near-term activity, central banks risks higher inflation, weaker fiscal positions, and the crowding-out of social spending.

Overall, the world economy enters 2026 navigating a negative supply shock against a backdrop of structural constraints and elevated uncertainty, with the path ahead depending heavily on the duration and scope of the conflict and on the quality of the policy response.

OVERVIEW OF THE INDIAN ECONOMY

India enters FY27 at the intersection of domestic resilience and external turbulence. The outgoing year, FY26, delivered real GDP growth of 7.6%, the strongest in recent years, which had encouraged a forecast of 7.0% to 7.4% for FY27 before the macroeconomic outlook was altered by the outbreak of the West Asia war at the end of February 2026. India nonetheless remains a relative bright spot in an uncertain global setting. The IMF s April 2026 World Economic Outlook raised India s growth forecast for FY27 to 6.5%, an upward revision of 0.1% point over its January 2026 estimate, supported by strong carry-over momentum from FY26, a reduction in United States tariffs on Indian goods from 50% to 10%, and resilient domestic demand. India s policy buffers, sound financial system, and sustained public investment provide a degree of insulation against the shock.

High-frequency indicators point to continued resilience, with some signs of stress in March 2026. E-way bill generation reached an all-time high of 140.6 million in March 2026, although Year on Year growth has moderated from its November 2025 peak. The Manufacturing Purchasing Managers Index (PMI) eased to 53.9 in March 2026 from 56.9 in February, and the Services PMI moderated to 57.5, with both remaining in expansionary territory. The Index of Eight Core Industries declined marginally by 0.4% in March 2026, taking full-year FY26 growth to 2.6%, against 4.5% a year earlier, as the West Asia crisis weighed on energy and input supply chains.

Inflation remained moderate at the consumer level, with retail inflation at 3.4% in March 2026 and core inflation stable at around 3.7%, aided by measures to shield households from higher fuel prices. However, the wholesale price index rose from 2.1% in February to 3.9% in March, signalling emerging cost-push pressures that could transmit to consumer prices if supply disruptions persist. Against this backdrop, the Reserve Bank of India maintained a cautious stance, keeping the repo rate unchanged at 5.25% while monitoring second-round effects. System liquidity remained in surplus, and bank credit grew by 17.1% Year on Year as of 31 March 2026 on a broad-based footing, with financial stability indicators remaining strong.

India s external sector demonstrated resilience through FY26. Total exports of goods and services rose by 4.2% Year on Year to a record $860.1 billion, services exports crossed $400 billion for the first time to reach $418.3 billion, and non-petroleum exports touched a historic high of $387.8 billion. The effects of the West Asia crisis were nonetheless visible in March 2026, when total exports and imports declined by 4.6% and 5.7% Year on Year (YoY) respectively.

The outlook is shaped by both opportunity and risk. The conflict represents a supply shock, with elevated energy, fertiliser, and industrial input prices threatening to raise inflation and to pressure fiscal and external balances, while a below-normal Southwest monsoon, linked to possible El Niño conditions, poses an additional risk to food prices. To temper these pressures, the Government has increased gas allocation to fertiliser production, waived customs duty, and raised the nutrient-based subsidy for the Kharif season. The Second Advance Estimates for FY26 nonetheless project record foodgrain output. With strong domestic fundamentals and a tradition of strategic autonomy, India is positioned to convert a multipolar global order into durable economic gains, while policy is expected to safeguard mediumterm fiscal and external stability.

Source: Economic Review, April 2026, Department of Economic Affairs; Economic Survey of India 2025-26

MARKET OVERVIEW

Manganese ore:

The global manganese ore market recovered in 2025 after the disruptions of the previous year, with the industry remaining resilient on the strength of demand from China and India. Global manganese ore production rose by 10% on a manganese-content basis to 21.4 Million Tonnes (MT), its highest level since 2021, supported by the return of Australian output and contributions from all major producing regions like Gabon, Ghana, and South Africa. The recovery was reflected in a 10% rise in China s wet-basis imports and in rising inventories at miners.

Supply growth was broad-based. South Africa, the world s largest producer, lifted output by an estimated 6%, while Gabon grew by 2%, Ghana by 10%, and Australia rebounded sharply by 94% as the GEMCO mine in northern Australia, suspended in 2024 after a tropical cyclone, resumed operation in May 2025. Together, these four countries accounted for 81% of global output, with South Africa alone contributing 46%, followed by Gabon at 19%, Australia at 9%, and Ghana at 7%. India, both a major producer and consumer, expanded output by 17%, while Brazil and Ivory Coast grew by 20% and 24% respectively, and China remained broadly stable. Grade dynamics shifted during the year. High-grade ore (>44% Mn) was broadly in line with the previous year, while mid-grade plus material (>40% and 30% and and low-grade ore (30%Mn) rose by 8% and 7% respectively.

Looking ahead, the fundamentals of the manganese ore market remain sound, anchored by the metal s irreplaceable role in steelmaking and its growing relevance to clean energy technologies. Recovering supply, shifting grade dynamics, the gradual emergence of battery demand, and the increasing prominence of strategic regulatory frameworks are likely to shape the market in the years ahead. Source: International Manganese Institute 2025 Annual Review; Ministry of Mines, Government of India; Mineral Commodity Summaries 2026, U.S. Geological Survey.

Iron ore:

The global iron ore market saw significant change in 2025, marked by a move toward lowergrade specifications and trade disruption from Chinese import curbs. Major Australian producers shifted their cargoes to lowergrade specifications, and from the second quarter of 2025 the seaborne benchmark transitioned to a 61% Fe basis from the longstanding 62% Fe.

Prices were volatile through the year. Amid record shipments and persistently weak steelmaking margins, with buyers penalising lower-iron, higher-impurity material, spot seaborne iron ore fell to a year-low of $92.75/Dry Metric Tonnes (DMT) on 18 June, as per S&P Global. As steel margins recovered over June and July on the back of falling coking coal and coke prices in China, demand returned and prices firmed through the rest of the year. The Platts IODEX (published by S&P Global Energy) averaged $102.37/DMT CFR China in 2025, above the $100/DMT threshold for most mills. On a comparable basis, the U.S. Geological Survey (USGS) reported the 62% Fe fines price (CIF Tianjin) averaging $99.07 per tonne over the first nine months of 2025, down from $112.07 in the same period of 2024. China s portside iron ore prices held above seaborne levels for much of the year, and the free-storage period at major Chinese ports was shortened to 30 days from 2026 in a move to curb hoarding.

In all, 2025 was defined by a structural shift toward lower-grade, 61% Fe-based pricing, by trade realignment driven by Chinese import curbs, and by the prospect of incremental seaborne supply from Simandou. For India, steady production growth and a resilient steel sector continue to anchor domestic iron ore demand.

Ferroalloys:

The ferroalloys industry remained closely tied to the steel cycle, with manganese alloy production proving resilient even as global steel output slipped by 1% for a second consecutive year. Global silicomanganese production edged up by about 1% to nearly 16.4 MT, highcarbon ferromanganese rose 2% to close to 4 MT, and refined ferromanganese jumped 11% to a record of roughly 1.8 MT, while electrolytic manganese metal output grew about 10% to 1.44 MT. Growth across the manganese alloy segment was led principally by China and India. The backdrop, however, was a soft one: global crude steel output is estimated to have declined for a second consecutive year in 2025, weighed down by continued propertysector weakness in China, even as India sustained double-digit growth in crude steel production. Ferroalloys are indispensable to steelmaking, where they act as deoxidisers and alloying agents that remove impurities and impart strength, hardness, and corrosion resistance, so their demand moves broadly in line with crude and alloy steel production.

The broader ferroalloys market spans a wide range of products whose demand is anchored to the global steel industry, particularly in the Asia-Pacific region, which dominates both steel output and consumption. Rising demand for high-strength, low-alloy steels across automotive, construction, machinery, and energy applications, together with sustained infrastructure and urbanisation spending in emerging economies such as China and India, continues to underpin long-term ferroalloy demand. Government-led infrastructure programmes in these markets translate directly into higher steel and, in turn, ferroalloy requirements. Asia accounts for the bulk of global manganese alloy output, with China and India together representing the majority of silicomanganese and ferromanganese production.

Ferroalloys are broadly categorised into bulk and noble grades. Bulk ferroalloys, which are of the highcarbon category and include silicomanganese, ferromanganese, ferrochrome, and ferrosilicon, are produced by large-scale operations and consumed mainly in carbon and stainless steelmaking; they account for the overwhelming majority of ferroalloy consumption. Noble ferroalloys are of the low-carbon category, are typically derived from costlier minerals, and include ferro-vanadium, ferro-tungsten, ferro-niobium, ferro-molybdenum, and ferro-titanium, serving niche, high-performance applications in superalloys, aerospace, and specialty steels. In India, bulk ferroalloys account for over 98% of total ferroalloy consumption, and around 80% of ferroalloy output is directed into steelmaking, with the balance used in castings, superalloys, aerospace, and other special applications.

India occupies a prominent position in the global ferroalloys landscape and is recognised for producing high-quality material with strong export potential, particularly to European markets. India s total installed ferroalloys capacity is around 5.15 Million Tonnes per annum (MTPA), comprising about 5.10 MTPA of bulk ferroalloys and 0.05 MTPA of noble ferroalloys; within bulk capacity, manganese alloys account for about 3.16 MTPA, chrome alloys 1.69 MTPA, and ferrosilicon 0.25 MTPA. India is a net exporter of ferroalloys, with roughly 25% to 30% of production typically exported, and is an established regular exporter of high-carbon ferromanganese, silicomanganese, and high-carbon ferrochrome.

Ferroalloys accounted for 8.43% of the value of India s metals and alloys exports in 2023-24 as per Indian Minerals Yearbook, ranking third after iron and steel and aluminium. The industry is concentrated in states such as Andhra Pradesh, Chhattisgarh, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Odisha, West Bengal, and Meghalaya, reflecting access to raw materials and power.

Reinforcing this position, India was the world s second-largest producer of silicomanganese, high-carbon ferromanganese, and refined ferromanganese in 2025, with domestic output rising 8%, 9%, and 21% respectively across the three products.

The most significant structural challenge for the Indian industry remains the cost and availability of electricity, which constitutes a large share of production costs and has prompted several players to operate below full capacity. To address this and capture growth, the industry continues to focus on adding and upgrading capacity, investing in energyefficient furnaces and automated material handling, expanding captive power generation to reduce dependence on costly grid electricity, strengthening rawmaterial linkages, and adopting new technologies. The long-term outlook remains constructive, supported by infrastructure and construction growth in emerging economies, a shift toward sustainable and recyclable materials, and the expanding production of low-carbon steel, all of which position the ferroalloys sector to meet rising demand for performance-enhancing steel inputs.

Global Silicomanganese Market Overview

Global silicomanganese production moved up by about 1% in 2025 to nearly 16.4 MT, supported by higher output in both China and India. China s production rose modestly by 1% to nearly 11.2 MT, rebounding after a sharp correction in 2024 that had followed earlier strategic stockpiling; although Chinese smelters continued to operate under tight margins, the sector saw some consolidation, with more efficient furnaces replacing outdated capacity, particularly in inner Mongolia. China remained dominant, accounting for 68% of global output, while India was the second-largest producer with a 15% share, up from 14% in 2024, as output grew 8% Year on Year and around half of it was exported. Among other producers, Brazil grew 7%, Vietnam 19%, Mexico 4%, and South Africa a notable 79%, while Malaysia and Norway each rose 1%; Russia and Georgia declined 8% and 34% respectively, though they remained among the larger suppliers outside the top two. By region, Asian output rose 2%, even as producers in Japan and South Korea continued to struggle against lower-priced material, and Europe rebounded 15% while still sitting below pre-Russia-Ukraineconflict levels. The Commonwealth of Independent States (CIS) fell 17%, as a modest recovery in Ukraine from a low 2024 base was outweighed by declines in Russia, Georgia, and Kazakhstan. North and South America expanded by 6% and 7% respectively, led by Mexico, the United States, and Brazil, while Africa contracted 5% as lower output in Gabon and Zambia outweighed a South African uptick. The Middle East was broadly flat, and Oceania declined as Australia s sole manganese smelter went offline from May 2025.

Global Ferromanganese Market Overview

Global production of high-carbon ferromanganese grew for a second consecutive year, rising 2% in 2025 to nearly 4 MT. The increase was driven largely by China and India, which together accounted for 70% of global production, at 42% and 28% respectively, up from 66% in 2024. China s output surged 9%, with some smelters switching from silicomanganese to high-carbon ferromanganese to capture better margins, while India recorded a similar 9% rise as high-carbon ferromanganese took a larger share of its manganese alloy exports and domestic consumption stayed healthy. Malaysia, the third-largest producer with a 7% global share, grew 5%, whereas Japan, South Korea, Norway, Russia, and Brazil all recorded declines and France surged 48% with Iran broadly stable. At the regional level, Asian output rose 5% and Europe climbed 22%, as gains in France and Spain offset a reduction in

Norway, while the CIS fell 11% on lower Russian output despite Ukraine s rebound from a historic low, North America dropped 25%, South America eased 3%, and African output was pressured by a halt to some South African operations from July, partly offset by Zambia and Egypt. Refined ferromanganese production rose more sharply, jumping 11% to a record of about 1.8 MT, again led by China and India, which together accounted for 72% of global output, at 48% and 24% respectively.

China s output climbed supported by the cost advantage of refined ferromanganese over electrolytic manganese metal for many downstream users, while India grew on robust overseas demand and Norway, the third-largest producer with a 12% share, rose 5%. Together with Japan, the United States, and South Africa, the latter of which fell sharply on a production shutdown in the second half of the year, these producers accounted for about 95% of global supply. Source: International Manganese Institute 2025 Annual Review; Indian Minerals Yearbook 2024, Indian Bureau of Mines; Mineral Commodity Summaries 2026, U.S. Geological Survey.

Coke

The global seaborne coking coal market remained subdued for much of 2025, weighed down by oversupply in the ferrous raw-materials complex, weak steelmaking margins, and the continued absence of China from the seaborne spot market. According to the IEA, whose assessment draws on Argus data, Australian premium hard coking coal prices on an FOB Australia basis remained below US$200/T through the first half of 2025, keeping pressure on producer profitability. The Argus PLV cfr east coast India index, a key reference for Indian buyers, eased to a low in March 2025 before recovering modestly by the end of June. Prices firmed in the second half, with the Argus PLV HCC FOB Australia assessment averaging about US$212/T in December 2025 and rising to around US$227/T in January 2026, its highest level since July 2024, as heavy rain and flooding in Queensland, force majeure declarations by several producers, and vessel congestion at Australian coal ports tightened supply.

Global Supply-Demand Dynamics

Global metallurgical coal exports were projected to fall by about 7% to 345 MT in 2025 on weaker demand led by China, even as Australia, the largest exporter, maintained stable export volumes of around 153 MT. China s coking coal imports edged down 3.0% to 120 MT, with the average import price almost halving to about US$101.7/T. Mongolia remained the leading supplier at 60.07 MT, a 51% share and up 5.8%, followed by Russia at 32.76 MT (28% share, up 7.4%) and Canada at 10.80 MT (9% share, up 19.6%). Mongolia directs effectively all of its metallurgical coal exports to China, reinforcing its position as the country s top supplier. A spate of minor mining incidents in Australia in April 2025 lent only momentary support to spot prices, as China stayed out of the seaborne spot market and seasonal monsoon lulls weighed on Indian procurement. Chinese end-users continued to meet their requirements largely from domestic supply, Mongolian imports, and portside inventories rather than seaborne premium cargoes.

India Coking Coal & Met Coke Market

India, the world s second-largest crude steel producer, remained structurally dependent on imported coking coal, sourcing around 90% of its requirement from abroad because high-ash domestic coal is largely unsuitable for direct use in blast furnaces. Met coal imports were expected to rise by about 9% Year on Year in FY26 on higher steel output. On metallurgical coke, the Quantitative Restrictions (QR) on low-ash met coke first imposed from January 2025 were extended through to 31 December 2025, capping imports at about 1.42 MT per half-year. The policy lifted domestic coke output, which rose 9% Year on Year to 47.56 MT over the first eleven months of FY26. From January 2026, however, the Directorate General of Foreign Trade (DGFT) removed the QR, after the Ministry of Finance approved a provisional anti-dumping duty of US$60.87 per tonne to US$130.6 per tonne on low-ash met coke from China, Indonesia, Colombia, Japan, and Russia, shifting domestic protection from quotas to duties.

Outlook

The structure of the seaborne market continued to evolve. With China prioritising near-shore sourcing and largely withdrawing from the seaborne spot market since 2020, the market has grown more fragmented and multipolar, leaving Australia s single producerled PLV benchmark to anchor pricing for an increasingly diverse buyer base across Europe, Japan, South Korea, India, Brazil, and the US. India sits at the centre of a longterm contest between Australian hard coking coal and recently expanded US east-coast supply as their production cost differentials level. For Indian merchant cokeries, the move from import quotas to anti-dumping duties on met coke, rising domestic coke output, and firmer late-cycle coking coal prices are likely to shape procurement and margins through 2026. Source: Argus Media; IEA Coal Mid-Year Update 2025; China customs (GACC) via APBI-ICMA; BigMint; Directorate General of Foreign Trade.

Outlook

India s economic outlook for FY 2026-27 remains resilient despite elevated global uncertainties arising from geopolitical tensions, trade fragmentation, volatile energy prices and global financial market volatility. RBI has projected India s GDP growth at 6.9% for FY 2026-27, supported by strong domestic demand, sustained public capital expenditure and improving private investment. Inflation has remained broadly under control under the flexible inflation targeting framework, with headline inflation remaining below the 4% target in the recent period. RBI has projected average CPI inflation of 4.6% for FY 2026-27. Continued government emphasis on infrastructure creation and capital expenditure is expected to support investment activity across core sectors, including steel, engineering and construction. Improved corporate balance sheets, rising productive capacity and sustained public investments are expected to aid demand momentum across infrastructure-linked industries. On the external front, foreign exchange reserves remain at comfortable levels, providing adequate import cover, while gross FDI inflows continue to remain encouraging, supported by increasing greenfield investments across finance and technology sectors.

Going forward, continued policy certainty, fiscal consolidation, structural reforms, ease of doing business and focus on inclusive growth are expected to support India s medium-term growth trajectory despite ongoing external challenges. 13ICRA has lowered its FY 2026-27 GDP growth forecast to 6.5% from 7.1% and raised its CPI inflation projection to 4.5% from 4.0%, assuming an average crude oil price of US $85/barrel for the fiscal. However, these estimates are subject to sizeable risks; a longer conflict with average crude oil at US $105/bbl could drag growth below 6% and push inflation above 5%. 14The International Monetary Fund (IMF) has raised India s growth forecast for FY 2026-27 to 6.5% from earlier 6.4%, as a sharp cut in US tariffs on Indian goods and a strong FY 2025-26 growth momentum is expected to offset the drag from the West Asian conflict. The IMF positions India as one of the few resilient economies in a global outlook that is increasingly shadowed by the conflict in West Asia. A reduction in US tariffs on Indian goods, from 50% to 10%, has meaningfully improved the trade outlook, and the carry-over momentum from a strong FY 2025-26 is expected to sustain activity into the next fiscal year. These positives, the IMF notes, are sufficient to offset the adverse spillovers from the ongoing war in West Asia.

COMPANY OVERVIEW

Nilachal Carbo Metalicks Limited, Est. 2003, has continued to strive and create a specialized space in the manufacturing of FAP grade Ultra & Low Phosphorus Low Ash Metallurgical Coke. Today, with years of experience in the industry we have built robust supply chain relationships with all major Ferro Chrome manufacturers as the leading manufacturers and suppliers of high-quality coke products.

BUSINESS SEGMENTS OVERVIEW

Coke & Energy:

The metallurgical coke industry is closely linked to the steel and ferro-alloy sectors, where coke is used as a key reductant and source of carbon. In India, continued growth in steel production, infrastructure and manufacturing is expected to support demand for metallurgical coke and specialised low-ash coke products. India remains substantially dependent on imported coking coal due to limited availability of suitable domestic low-ash coking coal.

Globally, metallurgical coke demand remains primarily driven by steel production. While global demand is expected to remain broadly stable in the near term, the transition towards lower-carbon steelmaking is expected to influence the industry over the longer term.

Within this industry, Low Ash Metallurgical Coke (LAM Coke) and specialised low-phosphorus grades continue to have importance in ferro-alloy and metallurgical applications. The industry remains exposed to fluctuations in coking coal, energy, logistics and coke prices, as well as changes in trade and environmental regulations.

Outlook:

The outlook for the metallurgical coke industry remains closely linked to the performance of the steel and ferro-alloy industries. Demand for specialised Low Ash Metallurgical Coke (LAM Coke) is expected to remain supported by the requirement for quality reductants in ferro-alloy and ferro-chrome manufacturing.

The domestic market continues to be influenced by the availability and pricing of imported metallurgical coke, particularly low-ash grades. Government policy measures relating to LAM Coke imports and anti-dumping duties may influence domestic pricing and competitive conditions.

At the same time, volatility in coking coal prices, logistics costs and international metallurgical coke prices remains a key factor affecting margins. Indias metallurgical coke demand is expected to grow with expansion in steel production, although import competition is likely to remain a challenge.

Given its focus on Ferro Alloy Grade Coke, Low/Ultra-Low Phosphorus and Low Ash Metallurgical Coke, NCML remains well positioned to serve specialised requirements of the ferro-alloy industry, subject to market conditions and input-cost movements.

FINANCIAL PERFORMANCE FY 2025-26 PERFORMANCE DISCUSSION:

FY 2025 26 was a year of resilient operating execution and a material strengthening of the capital base.

Revenue from operations remained essentially stable at 200.31 crore, despite an environment in which raw-material, price-realisation and working-capital conditions require close management. The Company delivered profit after tax of 10.44 crore and sustained a double-digit PBITDA margin of 10.80%.

The financial position strengthened substantially following the IPO and retention of earnings.

Shareholders funds rose 39.1% to 109.31 crore, cash and cash equivalents increased to 5.33 crore, and the current ratio improved to 3.51x from 2.11x. The focus for the next phase is to convert this larger capital base into stronger cash conversion, with particular attention to trade receivables and short-term loans and advances.

Financial highlights

Particulars	FY26	FY25	YoY
Revenue from operations	200.31	201.28	-0.5%
Other income	0.33	1.27	-73.8%
Total income	200.64	202.55	-0.9%
PBITDA*	21.68	26.93	-19.5%
Profit before tax	14.56	18.70	-22.1%
Profit after tax	10.44	13.90	-24.9%
Shareholders \u2019 funds	109.31	78.56	+39.1%
Cash and cash equivalents	5.33	1.13	+370.4%

*PBITDA is calculated as PBT plus finance costs and depreciation/amortisation; it is a derived management-analysis measure, not a separately reported audited line item.

Revenue and profitability analysis

Revenue from operations was 200.31 crore in FY2025 26 compared with 201.28 crore in FY2024 25, a limited 0.5% decrease. This broadly stable revenue performance is a constructive outcome in the context of a manufacturing and trading business exposed to volatile input costs and commercial realisations. The revenue base demonstrates continuing customer engagement and operating continuity across the Company s coke and coke-fines business.

Total income was 200.64 crore, down 0.9% year on year. Other income reduced to 0.33 crore from 1.27 crore; the year-on-year movement in total income was therefore modestly influenced by lower non-operating income, while the core revenue base remained largely preserved.

PBITDA was 21.68 crore, compared with 26.93 crore in FY2024 25. PBITDA margin was 10.80%, compared with 13.30%. While profitability moderated from a strong prior-year base, the Company retained a healthy double-digit operating margin. This supports a balanced investor narrative: FY2025 26 should be characterised as a profitable year with stable revenues, rather than assessed only through the decline from FY2024 25 margins.

Finance costs declined by 19.1% to 3.47 crore from 4.29 crore, partly cushioning the operating-profit movement. Depreciation and amortisation reduced by 7.7% to 3.64 crore. PBT was 14.56 crore and PAT was 10.44 crore. Net profit margin remained positive at 5.21%, demonstrating continued earnings conversion at the Company s scale of operations.

Profitability and return metrics

Metric	FY26	FY25	Movement / comment
PBITDA margin	10.80%	13.30%	-2.50 percentage points
EBIT margin	8.99%	11.42%	-2.43 percentage points
PBT margin	7.26%	9.29%	-2.03 percentage points
Net profit margin	5.20%	6.90%	-1.70 percentage points
Interest coverage*	5.20x	5.36x	Broadly stable
ROE (PAT / average equity)*	11.11%		FY26 only

*Calculated as EBIT divided by finance costs, where EBIT equals PBT plus finance costs.

**Calculated using FY25 and FY26 shareholders funds; FY24 equity was not included in the supplied audited statements, so an FY25 comparative is not presented.

Balance-sheet strength

Total assets increased by 44.71 crore, or 36.2%, to 168.31 crore as at 31 March 2026. The principal balance-sheet development was the increase in shareholders funds to 109.31 crore from 78.56 crore. Share capital increased by 2.60 crore and reserves and surplus increased by 28.15 crore. The combined increase of 30.75 crore reflects the year s equity issuance and retained profitability, and has materially enhanced the Company s financial base.

The Company s interest-bearing debt long-term borrowings plus short-term borrowings was 38.58 crore at year end, compared with 23.55 crore in FY2024 25. Long-term borrowings increased to 20.43 crore, while short-term borrowings reduced to 18.14 crore from 19.34 crore. The mix therefore shifted toward longer-tenor funding. The debt-equity ratio was 0.35x, which remains below 1x, although continuing disciplined utilisation, repayment planning and cash generation are important.

Balance-sheet measure	FY26	FY25	YoY
Total assets	168.31	123.60	+36.2%
Shareholders \u2019 funds	109.31	78.56	+39.1%
Long-term borrowings	20.43	4.20	+385.9%
Short-term borrowings	18.14	19.34	-6.2%
Total interest-bearing debt	38.58	23.55	+63.8%
Net debt*	33.25	22.41	+48.4%
Net PPE and CWIP	30.92	33.81	-8.5%

*Total interest-bearing debt less cash and cash equivalents. The report should not infer the final end-use of borrowings without management confirmation and reference to the relevant financing documents.

Liquidity and working-capital review

Current assets increased by 47.60 crore to 131.99 crore, while current liabilities reduced by 2.39 crore to 37.64 crore. The resulting current ratio improved materially to 3.51x from 2.11x. The quick ratio also improved to 2.48x from 1.26x. This enhancement in reported liquidity is a major positive feature of the FY2025 26 balance sheet.

Inventory increased to 38.73 crore from 33.91 crore, consistent with the operating and procurement requirements of the business. Trade receivables rose to 40.31 crore from 28.24 crore, and short-term loans and advances increased to 47.59 crore from 21.07 crore. Operating cash flow was negative 31.93 crore in FY2025 26, compared with negative 2.47 crore in FY2024 25. The audited cash-flow statement attributes this predominantly to the increase in short-term loans and advances of 26.52 crore, sundry debtors of 12.06 crore and inventory of 4.82 crore. The IPO and funding inflows strengthened overall liquidity: net cash from financing activities was 36.54 crore, including 20.31 crore from the issue of equity shares and 16.23 crore from changes in long-term borrowings. Year-end cash and cash equivalents therefore increased to 5.33 crore.

Liquidity / working- capital metric	FY26	FY25	Interpretation
Current ratio	3.51x	2.11x	Improved short-term asset coverage
Quick ratio	2.48x	1.26x	Higher liquid-asset coverage
Trade receivables	40.31	28.24	Requires collection and ageing focus
Short-term loans and advances	47.59	21.07	Requires purpose and recoverability monitoring
Inventory	38.73	33.91	Supports procurement and operating continuity
Operating cash flow	(31.93)	(2.47)	Working-capital absorption
Cash and cash equivalents	5.33	1.13	Improved year-end liquidity

Investor-oriented assessment

NCML s FY2025 26 results present a clear financial narrative. First, the Company maintained a 200 crore revenue platform and remained profit-making, with a 10.80% PBITDA margin. Second, the IPO and retained earnings materially strengthened shareholders funds and liquidity. Third, the funding profile shifted toward longer-term borrowings while short-term borrowings reduced. These are positive indicators of a business that has enhanced its financial capacity while continuing normal operations. The improvement agenda is equally clear. A larger share of capital is now deployed in receivables and short-term loans and advances, resulting in working-capital absorption and negative operating cash flow. Improving cash conversion through receivable collections, advance settlements, procurement planning and disciplined inventory management can reinforce returns on the enlarged equity base. This is a credible, investor-relevant opportunity rather than an issue to obscure.

OPPORTUNITIES

The Company operates in the specialised Low Ash Metallurgical ( LAM ) Coke segment, with a focus on Ferro Alloy Grade Coke and products having low ash and low/ultra-low phosphorus characteristics. The Companys products cater primarily to the requirements of ferro alloy manufacturers and other metallurgical applications.

The key opportunities available to the Company include:

Growing demand from the ferro-alloy industry: LAM Coke is an important reductant in the production of ferro alloys such as ferro-chrome, ferro-manganese and ferro-silicon. Growth in domestic ferro-alloy and steel production may support demand for quality metallurgical coke.

Specialised product capability: The Companys focus on Ferro Alloy Grade Coke, Low Phosphorus and Ultra-Low Phosphorus products provides an opportunity to serve customers requiring stringent coke specifications and consistent quality.

Import substitution: The imposition of anti-dumping duty on imports of Low Ash Metallurgical Coke is expected to improve the competitive position of domestic manufacturers and may create opportunities for increased domestic sourcing of LAM Coke. The Company expects this environment to support domestic demand, capacity utilisation and market opportunities.

Established customer relationships: The Companys longstanding relationships with major ferro-chrome and ferro-alloy manufacturers provide a platform for recurring business and potential expansion of customer volumes.

Product diversification: In addition to LAM Coke, the Company manufactures/supplies Coke Fines and other specialised coke products. Better utilisation of by-products such as coke fines can provide additional revenue opportunities and improve overall resource efficiency.

Capacity utilisation and expansion: The Company has opportunities to improve utilisation of its available manufacturing capacity and undertake capacity expansion/modernisation, subject to market demand, availability of capital and commercial viability.

Quality-driven market positioning: Consistent quality parameters such as ash, phosphorus, fixed carbon, CSR/CRI and size distribution are important for ferro-alloy customers. The Companys specialised product focus provides an opportunity to strengthen its position as a quality-oriented supplier.

THREATS

The Company faces certain external challenges that may impact performance:

Volatility in raw-material prices: Coking coal and other key inputs constitute a significant part of the Companys cost structure. Fluctuations in international and domestic prices may adversely affect margins where the increase cannot be fully passed on to customers.

Demand and price fluctuations: Demand and realisations for metallurgical coke are influenced by the performance of the steel, ferro-alloy and related metallurgical industries.

Import competition: Changes in import duties, trade policies, international coke prices and availability of imported LAM Coke may influence domestic market prices and competitive conditions.

Customer concentration: The Company has significant exposure to major ferro-alloy customers. Any reduction in purchases, delayed payments or loss of a major customer may affect revenue and working capital.

Energy and operating cost pressures: Coke manufacturing is energy-intensive. Changes in power, fuel, transportation and other operating costs can affect manufacturing margins.

Logistics and transportation: Availability and cost of transportation, port infrastructure and movement of raw materials and finished products may affect delivery schedules and overall cost competitiveness.

Regulatory and environmental requirements: The coke manufacturing industry is subject to environmental, pollution-control, safety and other statutory requirements. Changes in regulations or increased compliance requirements may result in additional expenditure.

RISKS AND CONCERNS

Key risks relevant to the Companys business include:

Operational Risk: Manufacturing operations depend upon the efficient functioning of coke oven batteries, associated plant and machinery, availability of raw materials, utilities and timely maintenance. Any prolonged breakdown or operational disruption may affect production and customer supplies.

Regulatory Risk: The Company operates in a regulated manufacturing environment and is required to comply with applicable environmental, pollution control, labour, factory, safety and other statutory requirements. Changes in laws, regulations or regulatory standards may increase compliance costs.

Cost Volatility: Prices of coking coal, power, fuel, transportation and other inputs are subject to market fluctuations. Significant increases in input costs, if not adequately passed on to customers, may adversely affect profitability.

Manpower Dependence: The Companys manufacturing activities require skilled and experienced technical, operational and maintenance personnel. Shortage or attrition of skilled manpower may affect operational efficiency.

Technology Risk: Efficient coke production depends on appropriate technology, plant condition, process controls and maintenance systems. Technological obsolescence, equipment failure or inadequate process optimisation may affect productivity, quality and cost efficiency.

Customer Concentration Risk: Dependence on a limited number of large customers, particularly in the ferro-alloy sector, exposes the Company to fluctuations in customer demand and purchasing patterns.

Working Capital Risk: The business requires adequate working capital for procurement of raw materials, inventory management and receivables. Any significant increase in inventory or receivable days may place pressure on liquidity.

Quality Risk: Ferro-alloy manufacturers require coke with specified ash, phosphorus, fixed carbon, size and other quality parameters. Any inconsistency in product quality may affect customer relationships and repeat orders.

RISK MITIGATION

The Company proactively manages risks through:

Maintaining long-term relationships with key customers , particularly customers in the ferro- alloy and ferro-chrome sectors.

Monitoring domestic and international trends in coking coal and metallurgical coke prices to support timely procurement and pricing decisions.

Maintaining appropriate inventory and procurement planning to reduce the impact of sudden raw-material price movements and supply disruptions.

Regular maintenance and monitoring of coke oven batteries, plant and machinery to minimise operational downtime.

Implementing appropriate quality-control procedures for raw materials, production processes and finished coke products.

Focusing on specialised Ferro Alloy Grade, Low Phosphorus and Ultra-Low Phosphorus products to meet customer-specific requirements.

Optimising the utilisation of coke fines and other by-products to improve resource efficiency and reduce wastage.

Regular monitoring of receivables, inventory and working capital requirements to maintain adequate liquidity.

Maintaining compliance with applicable environmental, statutory, safety and regulatory requirements .

Providing appropriate training and maintaining a competent workforce for production, quality, maintenance and safety functions.

Evaluating opportunities for modernisation, capacity enhancement and process improvement based on market demand and commercial viability.

INTERNAL CONTROL SYSTEMS AND ADEQUACY

The Company maintains an internal control framework designed to provide reasonable assurance regarding the effectiveness and efficiency of operations, safeguarding of assets, reliability of financial reporting and compliance with applicable laws and regulations.

Key features include:

i. Operational Controls: Defined processes and authorisation mechanisms for procurement, production, inventory, sales and dispatch activities.

ii. Procurement Controls: Controls over vendor selection, purchase orders, receipt of raw materials, quality verification and payment processing.

iii. Inventory Controls: Periodic monitoring and reconciliation of raw materials, work-in-progress, finished goods and coke by-products, supported by appropriate physical verification procedures.

iv. Production and Quality Controls: Monitoring of production parameters and quality specifications to ensure that LAM Coke and Ferro Alloy Grade Coke meet applicable customer requirements.

v. Financial Controls: Proper authorisation of expenditure, accounting controls, segregation of duties, bank reconciliations, receivable monitoring and periodic financial review.

vi. Receivables and Credit Controls: Monitoring of customer outstanding balances, credit exposure and collection cycles to manage working capital risk.

vii. Asset Controls: Proper records and periodic verification of fixed assets, plant and machinery and other Company assets.

viii. Compliance Controls: Monitoring of statutory and regulatory compliances applicable to the Companys operations, including environmental, labour, factory, taxation and corporate requirements.

ix. Management Review: Periodic review of operational and financial performance by the management, including analysis of production, sales, margins, inventory, receivables and other key performance indicators.

x. Internal Audit / Review Mechanism: Periodic review of key processes and controls, wherever applicable, with observations being communicated to the appropriate management personnel for corrective action.

The management is of the view that the Companys internal control systems are adequate and commensurate with the size, nature and complexity of its operations. The Company continues to strengthen its control environment through periodic review of processes and implementation of appropriate corrective measures.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/ INDUSTRIAL RELATIONS FRONT INCLUDING NUMBER OF PEOPLE EMPLOYED

Your Company endeavours to provide a conducive workplace with best standards and believes that employees are the most important assets. To ensure that an effective and the right resource is acquired, your company continuously strengthens and updates its hiring mechanism. The Company has adopted people practices that enable it to attract and retain talent in an increasingly competitive market; and to foster a work culture that is always committed to providing the best opportunities to employees to realise their potential.

As on March 31, 2026, the Company had a workforce of 71 number of people on rolls.

	For and on behalf of the Board of Directors
	NILACHAL CARBO METALICKS LIMITED
	S/d
	BIBHU DATTA PANDA
Place: Bhubaneswar	Managing Director
Dated: 07.09.2026	DIN: 01579026