1. Forward-Looking Statement
The Management Discussion and Analysis of the financial condition and results of operations of Nitiraj Engineers Limited may contain certain statements that are "forward-looking" in nature, within the meaning of applicable laws and regulations. Such statements reflect the Companys expectations, assumptions and projections regarding future events, business plans, industry trends and economic conditions.
Actual results may differ materially from those expressed or implied in such forward-looking statements due to various factors, including changes in government policies and regulations, taxation and fiscal policies, economic conditions, technological developments, market demand, competition, availability and cost of raw materials, and other factors beyond the Companys control.
While every effort is made to ensure that these expectations are reasonable, the Company cannot guarantee that they will be realized. Actual performance may vary significantly from such forward-looking statements due to a number of factors, including but not limited to:
Changes in domestic and international government policies and regulations Alterations in taxation, fiscal policies, or duties Fluctuations in the global economy and geopolitical environment Rapid technological advancements and market shifts Changes in consumer behavior, demand-supply dynamics, and competition Developments in raw material availability and logistics infrastructure
The Company undertakes no obligation to publicly amend, modify, or revise forward-looking statements on the basis of subsequent developments, information, or events, unless required by law.
2. Financial Statement Preparation and Accounting Standards
The financial statements of Nitiraj Engineers Limited are prepared under the historical cost convention using the accrual basis of accounting. The Company complies with the requirements of the Companies Act, 2013, and adheres to the applicable provisions of Indian Accounting Standards (IND-AS).
The preparation of financial statements requires management to exercise judgment, apply estimates, and make assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. These estimates and assumptions are reviewed on an ongoing basis and are based on managements best knowledge of current events, industry trends, and future expectations.
Management ensures that the financial statements provide a true and fair view of the Companys financial condition, operating performance, and cash flows. This MD&A should be read in conjunction with the audited consolidated financial statements and the notes contained in the Annual Report.
Unless the context otherwise requires, references to "we," "us," "our," "the Company," or "Nitiraj" pertain to Nitiraj Engineers Limited.
3. Economic Overview
3.1 Global Economic Landscape
The global economy during FY 2025-26 continued to face a mixed business environment. Geopolitical developments, changes in global trade policies, inflationary pressures and supply chain disruptions continued to influence economic activity across various regions.
At the same time, technological developments in automation, artificial intelligence, electronics and digital systems continued to create new opportunities for businesses. The increasing focus on localisation, supply-chain diversification and domestic manufacturing is also influencing investment and sourcing decisions across industries.
The manufacturing, electronics and automation sectors continue to benefit from increasing demand for efficiency, precision and technology-based solutions.
The global economy in FY 25-26 continued to experience a mixed trajectory of growth and challenges. Key global themes influencing the business environment included:
Geopolitical tensions: Ongoing conflicts and trade disputes have created volatility in supply chains, energy prices, and raw material availability. Technological disruption: Rapid digitalization, automation, and AI-driven systems are transforming industries globally. Shifts in global trade flows: Nations are increasingly prioritizing self-reliance and near-shoring strategies, impacting sourcing and exports. Inflationary pressures: Many economies faced high inflation rates, driving tighter monetary policies and moderating growth. Sustainability focus: Governments and corporations worldwide are integrating green policies, energy efficiency, and environmental standards into industrial production.
3.2 Indian Economic Landscape
India continues to remain one of the major growth economies, supported by domestic consumption, infrastructure development, manufacturing activity and increasing adoption of technology.
Government initiatives such as Make in India, Atmanirbhar Bharat, Digital India and Production Linked Incentive (PLI) schemes continue to support domestic manufacturing and technology development.
The increasing focus on electronics, automation, precision engineering, healthcare, agriculture and digital infrastructure provides a favourable environment for businesses operating in these sectors.
4. Industry Overview - Global & Indian Electronic Weighing Scale Industry
4.1 Definition and Applications
4. Industry Overview - Electronic Weighing Scale Industry
Electronic weighing scales are used across a wide range of applications, including retail, jewellery, healthcare, industrial manufacturing, logistics, agriculture, laboratories and other commercial activities.
The increasing requirement for accuracy, automation and digital integration is contributing to the development of the industry. Modern weighing solutions are increasingly being integrated with software, inventory systems, point-of-sale systems and other digital platforms.
Key applications include:
Retail and commercial establishments; Jewellery and precision measurement; Healthcare and patient monitoring; Industrial and manufacturing operations; Logistics and warehousing; Agriculture and food processing; and Research and laboratory applications.
The Companys established presence across commercial, healthcare, jewellery and industrial applications enables it to participate in these opportunities.
4.2 Global Market Outlook
The global electronic weighing scale market has shown steady growth and is poised for further expansion:
Growth drivers globally include:
4.3 Indian Market Outlook
Indias electronic weighing scale industry has grown steadily, aligned with the countrys industrial expansion and consumer demand for accuracy.
Key factors shaping the Indian market include:
The Indian market is also being shaped by Make in India policies, which encourage domestic manufacturing of electronic weighing machines, reducing dependence on imports.
5. Key Growth Drivers, Restraints and Opportunities
5.1 Key Growth Drivers
The key factors supporting demand for electronic weighing and related products include:
Industrial Automation: Increasing automation in manufacturing and logistics requires accurate and reliable measurement systems.
Technology Development: IoT-enabled products, wireless connectivity, rechargeable systems and software integration are creating opportunities for new-generation products.
Retail and Jewellery Sector: The requirement for reliable and accurate weighing equipment continues to support demand in these sectors.
Healthcare Applications: Government and institutional healthcare programmes continue to create opportunities for specialised weighing and measurement products.
Government and Institutional Business: Various government programmes and institutional requirements provide opportunities for specialised weighing systems.
New Product Development: Continuous product development enables the Company to address changing customer requirements and enter new application areas.
5.2 Key Challenges and Restraints
The industry also faces certain challenges, including:
Competition from organised and unorganised manufacturers; Availability of low-cost and non-compliant products; Changes in raw material and component prices; Requirement for regular servicing and calibration in certain product categories; Rapid changes in technology and customer requirements; and Timing and outcome of government and institutional tenders.
5.3 Opportunities
The Company sees opportunities in:
Government healthcare and nutrition-related programmes; Retail and commercial applications; Industrial and institutional customers; New security and automation products; Expansion into additional geographical markets; Development of technology-based and customised solutions; and Emerging opportunities in the drone technology sector.
5. Drivers, Restraints, and Opportunities
5.1 Key Growth Drivers
5.2 Restraints
5.3 Opportunities
6. Technology Trends
Technology is increasingly becoming an important differentiating factor in the electronic weighing and automation industry.
Important developments include:
7. Regional Market Dynamics
North America: Strong demand from healthcare, retail, and logistics sectors; high compliance with advanced standards. Europe: Growth supported by established players and stringent regulatory requirements. Asia Pacific: Fastest-growing market due to industrialization in India, China, and ASEAN nations. Middle East & Africa: Emerging demand in retail and food sectors. Latin America: Growing adoption in logistics and agriculture.
8. Indian Manufacturing Sector
Indias continued focus on domestic manufacturing, electronics and technology development provides opportunities for companies with established manufacturing and product development capabilities.
Government initiatives promoting domestic production and indigenous technology are expected to support the development of the manufacturing ecosystem.
For Nitiraj Engineers Limited, these developments provide opportunities to strengthen its existing product portfolio while also developing new technology-based businesses, including security, automation and agricultural drone manufacturing.
Drone Division - A New Growth Frontier
Building on its capabilities in precision electronics, product development and indigenous technology, Nitiraj Engineers Limited has entered the emerging drone technology sector as part of its strategy to develop new avenues for growth. This initiative is aligned with the Government of Indias vision of "Atmanirbhar Bharat" and the Companys continued focus on innovation and technology-based solutions.
The Company was approved by the Directorate General of Civil Aviation (DGCA) as a Remote Pilot Training Organisation (RPT0) in December 2023. The Company commenced drone pilot training activities in March 2025 and has since conducted training programmes for aspiring remote pilots. Through this initiative, the Company is developing its presence in the growing drone ecosystem and strengthening its technical and operational capabilities in this sector.
A significant milestone was achieved on 9 June 2026, when the Company received the Type Certificate from the DGCA for its Unmanned Aircraft System, "NADR10", a 10-litre agricultural spraying drone. The receipt of the Type Certificate is an important regulatory milestone and enables the Company to manufacture the certified drone in accordance with the applicable DGCA requirements.
The NADR10 has been developed for agricultural applications and incorporates indigenous components. The successful development and certification of the drone demonstrate the Companys capabilities in research, product development and technology integration.
Following receipt of the Type Certificate, the Company has commenced work towards the marketing and commercialisation of the NADR10 agricultural drone. The initial focus is on creating market awareness, engaging with prospective customers and developing suitable sales and service arrangements.
The Company also expects to create synergies between its drone pilot training activities, drone manufacturing, product sales and related support services.
The increasing adoption of technology in agriculture and the continued development of Indias drone ecosystem provide opportunities for the Company to develop this new business vertical. While the drone manufacturing business is at an early stage of commercialisation, the receipt of the DGCA Type Certificate provides an important foundation for pursuing future growth opportunities.
9 - Company Overview / Manufacturing Capabilities
Government Approved Test Centre (GATC)
During the year, the Company achieved an important operational milestone by receiving approval from the Government of India, Ministry of Consumer Affairs, Department of Consumer Affairs, Legal Metrology Division, as a Government Approved Test Centre (GATC) under Section 24 of the Legal Metrology Act, 2009.
The approval authorises the Company to undertake verification of Non-Automatic Weighing Instruments of Accuracy Class III up to 150kg manufactured by the Company, with an approved verification capacity of 2,600 instruments per month. The approval is valid up to 5 May 2027.
This approval strengthens the Companys in-house verification capabilities and is expected to improve operational efficiency and reduce dependence on external verification facilities.
Nitiraj Engineers Ltd. - Company Overview and Management Discussion
About the Company
Nitiraj Engineers Limited, established in 1989, is engaged in the manufacturing and marketing of electronic weighing scales and related products. Over the years, the Company has expanded its product portfolio to include:
Electronic Weighing Scales and Systems; Currency Counting Machines; Security and Automation Products; Electronic Fare Meters; and Other specialised weighing and measurement products.
The Companys products cater to customers across industrial, commercial, jewellery, healthcare and household segments.
Guided by a commitment to precision, innovation, and reliability, Nitiraj Engineers Ltd. has strengthened its position as a trusted partner for customers seeking high-quality, cost-effective, and technologically advanced measurement and automation solutions.
Specializations and Government Initiatives
NEL has been a preferred supplier for various state government programs, particularly in the domain of Child Growth Monitoring Systems (CGMS). The Companys weighing machines designed for these initiatives integrate advanced technology, supporting data collection, plotting, management information systems (MIS), and information dissemination. By aligning with government health and welfare schemes, NEL has been contributing to the larger national goal of improving child and maternal healthcare outcomes.
This strategic focus not only strengthens the Companys social impact but also ensures continued demand for its solutions in the public sector.
Manufacturing Capabilities
A key strength of NEL lies in its state-of-the-art manufacturing facility at Dhule, Maharashtra. The plant is designed to support continuous research, stringent quality control, and high-volume production. With an annual capacity of nearly six lakh units, this facility underscores the Companys preparedness to address rising domestic and international demand.
Distribution and Brand Identity
Under the flagship brand "PHOENIX", Nitiraj Engineers Ltd. has established a strong distribution network. The Company operates through branches and complemented by a network of over 400 dealers across India and overseas.
This robust distribution system ensures efficient product availability, after-sales service, and customer engagement, thereby strengthening the Phoenix brand as a trusted name in precision measurement.
Quality, Certifications and R&D
The Company places utmost emphasis on quality assurance. Its operations are accredited with ISO 9001:2015 certification, a testimony to its process integrity and product reliability. With a customer base exceeding one million users, NEL has continually met the expectations of both institutional and retail clients.
The in-house Research & Development Centre at Dhule is a vital enabler of innovation. Equipped with modern facilities and manned by experienced engineers, the R&D team plays a pivotal role in developing electronic hardware, software, and advanced measurement solutions. This continuous investment in R&D has allowed the Company to remain ahead of technology curves and adapt to evolving industry trends.
Drone Division - Chairmans Vision
In alignment with its philosophy of diversification and forward-looking innovation, Nitiraj Engineers Ltd. has embarked on a new strategic initiative with the establishment of its Drone Division.
As articulated in the Chairmans message, the move into drone technology is a natural extension of NELs expertise in precision engineering, electronics, and automation. Drones represent a transformative technology, with applications across agriculture, infrastructure, logistics, and defense. The Companys foray into this domain reflects its intent to leverage its technical strengths while exploring high-growth opportunities in emerging industries.
Initial efforts are focused on building competencies in drone design, assembly, and field applications. With the Government of India actively promoting domestic drone manufacturing and offering supportive policy frameworks, NEL sees this segment as a long-term growth driver that complements its core weighing scale business.
The Chairman has emphasized that while weighing technology continues to be the cornerstone of the Companys operations, the Drone Division is positioned as a growth catalyst, paving the way for product diversification, enhanced R&D capabilities, and new revenue streams. This initiative is expected to create synergies with NELs existing competencies, particularly in electronics, software integration, and precision control systems.
Financial Overview - FY 2026
The financial performance of Nitiraj Engineers Ltd. for the year ended March 31, 2026 is summarized as follows:
Revenue
The Company reported total revenue from operations of ?47.89 crore, compared to ?77.42 crore in the previous year, representing a decline of 38.14%. During FY26, several government and institutional tender opportunities were either cancelled, remained under process, or could not be converted into orders during the financial year.
EBITDA
The Companys EBITDA stood at ?3.54 crore, compared to ?9.43 crore in FY 2025.
Net Profit
Net Profit for FY 2026 was ?1.06 crore, against ?4.83 crore in the previous year. Despite the year-on-year decline, the Company has maintained profitability even in a challenging operating environment.
Earnings Per Share (EPS)
EPS for FY 2026 was ?1.03, reflecting the Companys ability to sustain shareholder value creation.
Resources & Liquidity
As of March 31, 2026, the Companys net worth stood at ?82.33 crore, supported by cash and cash equivalents of ?3.31 crore. The balance sheet remains healthy, enabling continued investment in growth initiatives.
Segment-Wise Performance
NEL operates across five broad segments, each addressing distinct customer needs:
Revenue distribution across product segments in FY 2026 was as follows:
| Segment | % Share of Turnover |
| Commercial Weighing Scales | 56.82% |
| Mechanical Range Scales | 1.81% |
| EMFR & Jewellery Range | 7.76% |
| Health Range Scales | 29.00% |
| Currency Counting & Home Automation | 3.54% |
This diversified portfolio mitigates dependency on any single segment while positioning the Company to capture opportunities across multiple industries.
Risks and Concerns
Like any enterprise, NEL faces operational and strategic risks. A robust risk management framework is in place, involving periodic risk workshops and reviews of risk registers. Key risks include:
Opportunities
Threats
Rapid technological disruption in core industries.
Internal Controls
The Company has internal control systems designed to safeguard its assets, ensure proper authorisation of transactions, support compliance with applicable laws and regulations, and provide reliable financial information.
The internal control framework is supported by defined policies and procedures. The Internal Auditor periodically reviews various processes and systems, and significant observations, if any, are placed before the Audit Committee and management for appropriate action.
The Company believes that its internal financial controls are commensurate with the size and nature of its operations.
Human Resources
As of March 31, 2026, the Company employed 262 permanent staff and 70 contractual employees. Guided by a philosophy of nurturing a high-performance organization, NEL emphasizes skill development, employee engagement, and industrial harmony. Relations with employees remained cordial during the year.
Outlook
The Company continues to see opportunities in its core electronic weighing scale business, supported by demand from retail, healthcare, jewellery, industrial and institutional customers.
The Company is also focusing on new products, security and automation solutions and expansion into new customer segments and geographical markets.
While FY 2025-26 was affected by the timing and outcome of government and institutional tenders, there has been a positive development towards the end of the year and the beginning of the new financial year. During March 2026 and April 2026, the Company received three tender orders aggregating approximately 15 crore.
In addition, the Company has participated in other tenders that are at various stages of the process, including some that are at an advanced stage. The outcome and timing of these tenders will depend on the respective tendering authorities and processes.
The Company will continue to focus on strengthening its core business through its established branch and dealer network, product development capabilities and customer service.
The receipt of the DGCA Type Certificate for the NADR10 agricultural drone is another important development. The Company is now working towards marketing and commercialization of the product and developing appropriate sales and service arrangements.
The Company will continue to develop its drone business in a phased manner, with emphasis on product quality, regulatory compliance, customer support and building a sustainable business model.
Concluding Note
FY 2025-26 was a year of challenges as well as important progress for Nitiraj Engineers Limited. While revenue and profitability were affected by lower business volumes and the timing of government and institutional orders, the Company continued to invest in its manufacturing capabilities, product development and new business opportunities.
The Company maintained its net-debt-free position and incurred capital expenditure of approximately ?5.37 crore during the year.
The receipt of tender orders aggregating approximately ?15 crore during March and April 2026 provides a positive beginning for the new financial year. The receipt of the DGCA Type Certificate for the NADR10 agricultural drone on 9 June 2026 is another significant milestone and opens a new avenue for the Companys future growth.
With its established brand, branch and dealer network, in-house R&D capabilities, diversified product portfolio and new opportunities in drone technology, Nitiraj Engineers Limited will continue to focus on strengthening its business and creating sustainable long-term value for its stakeholders.
| For Nitiraj Engineers Limited |
| Sd/- |
| Rajesh Bhatwal |
| Managing Director |
| Din: 00547575 |
| Place - Mumbai |
| Date - 04/09/2026 |
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