Nirmitee Robotics India Ltd Management Discussions

Industrial Structure and Developments:

Industrial Structure and Developments

Nirmitee Robotics India Limited, a BSE SME Startup Listed Company, continues to remain the worlds leading HVAC Air Duct Cleaning Company. With our specialized expertise, we serve a wide array of clients including Offices, Hotels, Convention Centers, Hospitals, Train and Bus Coaches, Aircraft, as well as facilities that require ultra-clean environments like Data Centers and Operation Theaters.

The HVAC cleaning industry is witnessing transformative growth with the adoption of robotics and automation technologies. Robots designed to navigate complex duct systems enable faster, safer, and more accurate cleaning, while reducing operational downtime and enhancing air quality. The industry is also seeing integration of AI, IoT, high-resolution imaging, and real-time monitoring for predictive maintenance and enhanced efficiency.

This growing adoption underscores a shift towards sustainable, health-driven building management practices, where robotic duct cleaning has emerged as an essential service ensuring safety, hygiene, and efficiency.

Opportunities and Threats Opportunities

• Growing Market Awareness: Rising focus on indoor air quality in commercial and residential infrastructure creates sustained demand.

• Technological Advancements: Integration of AI, IoT, and data-driven inspection tools is enhancing efficiency and value.

• Cost Efficiency: Robotic cleaning reduces downtime and labor intensity, offering measurable savings for clients.

• Safety Advantage: Minimizes human entry into confined and hazardous spaces, reducing operational risks.

• Global Potential: Expansion opportunities across new geographies and industries such as healthcare, aviation, and smart infrastructure.

Threats

• High Capital Costs: Procurement and maintenance of advanced robotic systems may increase operational costs.

• Rapid Technology Obsolescence: Continuous upgrades required to remain competitive.

• Technical Challenges: Diverse duct configurations demand adaptable robotics and skilled operators.

• Maintenance of Equipment: Robots themselves require ongoing servicing and calibration.

• Market Competition: Entry of new players adopting similar technologies could impact margins.

Outlook

The outlook for robotic HVAC duct cleaning remains highly promising, supported by growing awareness of indoor air quality and technological innovation. Future robots will leverage machine learning and predictive analytics to deliver higher accuracy, minimal downtime, and improved preventive maintenance. The integration with smart building systems and IoT will further enable real-time monitoring, ensuring long-term efficiency.

With the expected reduction in technology costs and increasing health consciousness, the adoption of robotic cleaning solutions will continue to accelerate across residential, commercial, and industrial sectors. Nirmitee Robotics India Limited, with its proven

expertise and first-mover advantage, is well-positioned to capitalize on this trend and strengthen its market leadership.

Risks and Concerns

Key risks include potential equipment malfunctions, reliance on technological upgrades, and the requirement for skilled technicians to operate advanced systems. Market dynamics such as increased competition, fluctuating demand in certain sectors, and the challenge of maintaining high service standards in complex projects could also affect performance. The Company continuously evaluates and mitigates these risks through R&D, regular maintenance, staff training, and strict adherence to quality standards.

Internal Control Systems and Their Adequacy

The Company has an adequate internal control system commensurate with its size and nature of business. Controls are designed to ensure:

• Operational efficiency and safety,

• Compliance with applicable laws and regulations,

• Protection of assets, and

• Reliability of financial reporting.

Regular internal audits, equipment maintenance schedules, and employee training programs form an integral part of the Companys governance framework, ensuring that risks are effectively identified and mitigated.

Segment-wise / Product-wise Performance

The Company operates in a single segment — HVAC Air Duct Cleaning Services. For the financial year ended March 31, 2025, the Company reported:

• Revenue from Operations and Other Income of ?897.53 lakhs (Standalone and Consolidated) as against ?501.76 lakhs (Standalone) and ?604.64 lakhs (Consolidated) in the previous year.

• Profit Before Tax of ?79.45 lakhs (Standalone and Consolidated) compared to ?64.17 lakhs (Standalone) and a loss of ?82.03 lakhs (Consolidated) in the previous year.

• Profit After Tax of ?60.22 lakhs, as against ?49.28 lakhs (Standalone) and a loss of

?96.92 lakhs (Consolidated) in the preceding year.

• Earnings Per Share (EPS) stood at ?1.67 as compared to ?1.37 (Standalone) and negative ?2.69 (Consolidated) in FY 2023-24.

This improvement in financial performance highlights the Companys resilient business model, improved operational efficiency, and successful consolidation strategy.

(Amount in Lakhs)

Particulars	31/03/2025		31/03/2024
	Standalone	Consolidated	Standalone	Consolidated
Revenue From Operations and Other Income	897.53	897.53	501.76	604.64
Net Profit/Loss before Interest, Depreciation and Tax	120.87	120.87	100.48	(42.10)
Less: Finance Cost	24.45	24.45	21.14	22.80
Net Profit/Loss before Depreciation and Tax	96.42	96.42	79.34	(64.90)
Less: Depreciation and amortization for the year	16.97	16.97	15.17	17.13
Net Profit/Loss before exceptional and extraordinary items and tax	79.45	79.45	64.17	(82.03)
Less: Exceptional Items	0.00	0.00	0.00	0.00
Profit before extraordinary items and tax	79.45	79.45	64.17	(82.03)

Less: Extraordinary Items	0.00	0.00	0.00	0.00
Profit before tax	79.45	79.45	64.17	(82.03)
Less: Tax Expenses
i. Current tax expense	20.00	20.00	16.25	16.25
ii. Deferred tax Liability/(Assets)	(0.77)	(0.77)	(1.36)	(1.36)
iii. Tax for Earlier years	0.00	0.00	0.00	0.00
Profit/Loss for the period from continuing operations	60.22	60.22	49.28	(96.92)
Profit/Loss from discontinuing operations	0.00	0.00	0.00	0.00
Tax expense of discontinuing operations	0.00	0.00	0.00	0.00
Profit/Loss from discontinuing operations (after tax)	0.00	0.00	0.00	0.00
Profit/Loss transferred/adjusted to General Reserve	60.22	60.22	49.28	(96.92)
Basic earnings per equity share	1.67	1.67	1.37	(2.69)
Diluted earnings per equity share	1.67	1.67	1.37	(2.69)

Discussion on financial performance with respect to operational performance:

1. Revenue and Income:

During the financial year ended March 31, 2025, the Company recorded standalone and consolidated revenue of ?897.53 lakhs, as against ?501.76 lakhs (Standalone) and ?604.64 lakhs (Consolidated) in the previous year. This reflects a strong growth in operational income, driven by improved market demand and enhanced service delivery.

2. Profitability Analysis:

The Company reported a Profit Before Tax of ?79.45 lakhs (Standalone and Consolidated) as compared to a profit of ?64.17 lakhs (Standalone) and a loss of

?82.03 lakhs (Consolidated) in the previous year. Net Profit After Tax stood at

?60.22 lakhs, an improvement over ?49.28 lakhs (Standalone) and a loss of ?96.92

lakhs (Consolidated) in FY 2023-24. This turnaround in consolidated results highlights the benefits of business consolidation and improved operational efficiency.

3. Finance Costs and Depreciation:

Finance costs increased to ?24.45 lakhs from ?21.14 lakhs (Standalone) and ?22.80 lakhs (Consolidated) in the previous year, reflecting higher borrowing costs. Depreciation also increased to ?16.97 lakhs from ?15.17 lakhs (Standalone) and

?17.13 lakhs (Consolidated) in FY 2023-24, indicating incremental capital expenditure. While these costs placed a burden on profitability, they were offset by stronger operational performance.

4. Earnings Per Share (EPS):

The EPS improved to ?1.67 for FY 2024-25 as compared to ?1.37 (Standalone) and negative ?2.69 (Consolidated) in the previous year. This reflects enhanced profitability and value creation for shareholders.

Summary:

The financial performance for the year ended March 31, 2025, indicates significant improvement in both standalone and consolidated operations. Revenue growth, combined with improved profitability and a positive turnaround at the consolidated level, demonstrates the Companys resilience and effective execution of its business strategies. While finance costs and depreciation continue to impact margins, the overall trajectory highlights strengthened operational efficiency and sustainable growth prospects.

Material development in Human & Other Resources/ Industrial Relations Front:

For a duct cleaning robotics company, advancing Human Resources (HR) and Industrial Relations (IR) is essential to align workforce capabilities with technological innovations and optimize operations.

HR Developments:

• Specialized Training: Develop comprehensive training programs to upskill employees in operating and maintaining robotic systems. This includes technical training on robotics and software, and soft skills training for effective teamwork and customer interactions.
• Talent Acquisition: Focus on recruiting skilled professionals in robotics, engineering, and data analysis. Collaborate with educational institutions to build a skilled talent pipeline.
• Employee Engagement: Implement career development plans, provide opportunities for advancement, and create a supportive work environment to boost retention and motivation.
• Health and Safety: Establish stringent safety protocols and ergonomic practices to safeguard employees working with robotic systems, ensuring adherence to industry standards.

IR Developments:

• Labor Relations: Engage proactively with unions and maintain transparent communication to address job security, working conditions, and compensation concerns.
• Work-Life Balance: Offer flexible work arrangements and support systems to enhance employees work-life balance.
• Compliance: Ensure adherence to labor laws and safety regulations, providing ongoing training to keep the workforce informed about legal requirements.
• Change Management: Facilitate smooth transitions to new technologies through effective change management strategies and communication.

These initiatives will help the company efficiently manage its workforce and adapt to technological advancements in robotic duct cleaning.

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

Sr. No.	Ratios	Numerator	Denominator	31- Mar- 25	31- Mar- 24	% Change	Reason for Varianc e
1	Current Ratio	Current Assets	Current Liabilities	2.81	1.99	41.19	Sub-note (i)
2	Debt-Equity Ratio	Total Debt	Equity Share Capital +Reserves & Surplus	0.10	0.24	-57.70%	Sub-note (ii)
3	Debt Service Coverage Ratio	EBITDA	Finance Cost	4.94	4.75	4.01%	-
4	Return on Equity Ratio	PAT	Equity Share Capital +Reserves & Surplus	11.6	8.76	2.84%	-
5	Inventory Turnover Ratio	COGS/ Sales	Average Inventory	23.16	13.76	68.35%	Sub-note (i)
6	Trade Receivables Turnover Ratio	Total Sales	Average Accounts Receivable	3.20	1.71	87.03%	Sub-note (i)
7	Trade Payables Turnover Ratio	Total Purchases	Average Trade Payables	6.26	2.63	138.09%	Sub-note (i)

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Sub-Note (i) – Current Ratio and Working Capital Turnover Ratio along with ratios relating to working capital have increased due to an increase in current assets, being cash and cash equivalents and trade receivables.

Sub-Note (ii) – Repayment of Unsecured Loan has caused a change in Debt Equity Ratio.

Disclosure of Accounting Treatment:

The financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values, wherever applicable. GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act,2013 (Act) read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing standard requires a change in the accounting policy hitherto in use.