Oriana Power Ltd Management Discussions

Global Economy

OVERVIEW

Global economic activity continued to be supported by investment in technology and digital infrastructure, resilient activity across several emerging markets, and continued capital deployment in areas such as artificial intelligence (AI). Against this backdrop, global growth is projected at 2.5% in FY26, compared with 2.9% in FY25. Tighter monetary conditions, weaker trade, and conflict in the Middle East have contributed to higher energy prices, while global headline inflation is projected to increase to 4.0% this year before moderating to 3.1% in FY27. Higher energy, commodity, and food prices, alongside tariff pass-throughs, have made inflation increasingly supply-driven and contributed to divergent monetary policy conditions. Geopolitical developments have also heightened volatility across commodity markets, foreign exchange movements, and global supply chains, adding to the operating complexity for capital-intensive industries dependent on cross-border sourcing and long project execution cycles. At the same time, continued AI-related investment and the expected moderation in inflation provide areas of support. As businesses adapt to a changing operating environment, greater emphasis on energy security, supply-chain flexibility, and technological adoption is expected to support resilience and future growth.

OUTLOOK

The global economy is expected to gradually regain momentum over the medium term, with growth projected to average 2.8% in FY28 as energy supplies recover, inflation subsides, and monetary conditions ease. Continued investment in technology, including broader AI adoption, could provide further support to productivity and help offset slower labour-force growth in several economies. However, the outlook remains exposed to prolonged disruptions in commodity flows, geopolitical uncertainty, and extreme weather events, while emerging market and developing economies continue to face challenges in narrowing income gaps with advanced economies. Against this environment, supply-chain diversification, technological adaptation, and improving energy security are expected to strengthen economic resilience. Continued progress on inflation management, fiscal sustainability, and international cooperation on trade and energy could further support a more stable environment for investment and growth.

Indian Economy3, 4

OVERVIEW

India remained one of the fastest-growing major economies in FY26, supported by resilient domestic demand, sustained infrastructure investments, improving private consumption, and a stable macroeconomic environment. While domestic macroeconomic fundamentals remained resilient, businesses continued to navigate imported inflationary pressures, currency depreciation, and elevated fuel prices, which increased operating and logistics costs across infrastructure and manufacturing sectors. Real GDP is estimated to grow by 7.6% in FY26, reaching ^322.6 Lakh Crore, while nominal GDP is projected to expand by 8.6% to ^345.5 Lakh Crore. Real Gross Value Added (GVA) is estimated to rise by 7.7%, reflecting broad-based growth across manufacturing, services, and construction sectors. Strong government capital expenditure, continued digitalisation, rising formalisation of the economy, and healthy financial sector fundamentals further supported economic activity. Inflation remained largely within the Reserve Bank of Indias tolerance band for most of the year, aided by easing food price pressures and prudent monetary management, providing support to household consumption and investment activity. Indias growth trajectory continued to outperform most major economies despite an uncertain global economic environment.

OUTLOOK

Indias medium-term economic outlook remains favourable, underpinned by robust domestic demand, ongoing infrastructure development, expanding manufacturing capabilities, and policy initiatives aimed at enhancing competitiveness and investment. However, growth is expected to moderate from the elevated levels recorded in FY26 amid a challenging global backdrop. The OECD projects Indias GDP growth at 6.3% in FY27 and 6.4% in FY28, reflecting the impact of higher global energy prices, geopolitical uncertainties, and softer external demand. Inflation is projected to increase to around 4.8% in FY27 driven by higher food, fuel, and fertiliser costs, although it is expected to remain within a manageable range. While continued public investment and policy support are expected to sustain growth, reducing regulatory complexity, and improving administrative efficiency will remain important to support investment, improve productivity, and accelerate project implementation. Fiscal policy is expected to remain supportive while maintaining consolidation objectives, and continued public investment is likely to crowd in private sector capital expenditure. Supported by structural reforms, digital transformation, favourable demographics, and expanding domestic consumption, India is expected to retain its position among the worlds fastest-growing large economies.

GLOBAL CLEAN ENERGY INDUSTRY

The global clean energy sector is on an accelerated growth trajectory, fundamentally reshaping the worlds fuel mix. In FY25, low-emissions sources, including solar, wind, nuclear, and hydropower, contributed nearly 60% of the growth in global energy demand. This rapid deployment generated measurable substitution effects across the broader economy: clean energy expansion since FY19 avoided more than 35 exajoules of fossil fuel demand in FY25 alone, representing roughly 7% of total global fossil fuel use. To put this into perspective, the avoided coal demand (around 800 Million tonnes of coal equivalent) exceeded Indias entire FY25 coal consumption, while avoided gas demand approached half of the global liquefied natural gas (LNG) market. Renewables now virtually match global electricity generation from coal, while electricity demand is growing more than twice as fast as overall energy demand, ushering in the age of electricity.

As the global energy transition advances, its increasing complexity is redefining the priorities for long-term growth. The World Economic Forums Energy Transition Index 2026 highlights that while clean energy investment and deployment continue to gather pace, geopolitical fragmentation, trade policy shifts, and rising focus on energy security are reshaping transition pathways across regions. The report notes that infrastructure development, grid modernisation, and financing are emerging as critical enablers of future progress, even as countries balance decarbonisation objectives with affordability, resilience, and industrial competitiveness. The International Energy Agency (I EA) notes that as renewable energy deployment accelerates, strengthening electricity grids, transmission networks, and system flexibility is becoming essential to sustaining the next phase of clean energy growth.

Looking ahead, the IEA expects global electricity demand to continue growing strongly through FY30, driven by electrification across industry, transport, and buildings, alongside the rapid expansion of AI, data centres, and digital infrastructure, reinforcing the central role of clean energy in meeting future demand.

Generation: Solar Sector

Solar power generation captures sunlight to produce electricity, serving as the most scalable, cost-competitive, and fastest-growing source of renewable power worldwide. The solar sector recently experienced a record-breaking year, emerging as the largest contributor to the increase in global energy demand and meeting more than 25% of incremental demand. This marked the first time on record that a modern renewable source contributed the largest share of global demand growth. In FY25, solar PV electricity generation increased by 600 TWh, the largest-ever annual generation increase by any

energy source, bringing its share of global electricity generation to over 8%. Capacity additions rose by 12% to surpass 600 GW, pushing cumulative global PV capacity to approximately 2,800 GW. While annual capacity additions may moderate slightly in FY26 due to evolving policy dynamics in China, cumulative global photovoltaic capacity is still projected to almost double by 2030.

Storage: Battery Energy Storage Systems (BESS) Sector

Battery Energy Storage Systems capture and store excess renewable energy for use during peak demand or grid fluctuations, acting as a critical enabler of grid stability and reliability. Battery storage has emerged as the fastest- growing power technology globally. In FY25, 112 GW/307 GWh of new battery storage capacity was deployed worldwide, representing a 48% increase over the previous year and bringing installed capacity to 11x its FY21 levels. BloombergNEF forecasts deployments to accelerate to 158 GW/459 GWh in FY26, representing a further 41% year-on-year increase. Lithium-iron phosphate (LFP) batteries now account for around 90% of deployments due to their cost-effectiveness and suitability for frequent cycling. Utility-scale projects represent roughly 80% of new capacity, with China leading deployment (around 60% of global additions), followed by the United States and Europe. As variable renewables such as solar PV continue to expand, battery storage durations are gradually extending to four hours or more, providing greater flexibility and resilience to electricity grids.

Consumption: Sustainable Fuels Sector

These sustainable fuels provide low-carbon energy solutions for hard-to-abate sectors, including heavy industry, aviation and long-distance transport, where direct electrification remains challenging. Green hydrogen and sustainable aviation fuel (SAF) are gaining commercial momentum as investment, policy support, and industrial deployment continue to strengthen. China has emerged as the global leader in electrolytic ("green") hydrogen, installing approximately 1.5 GW of electrolysers in FY25, with an additional 10 GW under construction. Global electrolysis deployment is expected to accelerate significantly through the remainder of the decade, supported by expanding manufacturing capacity, committed investments, and declining electrolyser costs, with stack prices now below $100/kW. Simultaneously, the sustainable aviation fuel market is experiencing rapid expansion. SAF consumption more than doubled in 2025 to 2 Million metric tons, while dedicated global SAF production capacity is expected to increase by around one-third to 8 Million metric tons in FY26. Announced projects could raise global SAF production capacity to 42 Million metric tons by FY30, providing a critical pathway for decarbonising the aviation sector.

INDIAN CLEAN ENERGY INDUSTRY

OVERVIEW

Indias clean energy sector continued its rapid expansion in FY26, reinforcing the countrys position as one of the worlds fastest-growing renewable energy markets. Indias renewable energy installed capacity reached 274.68 GW, representing a 3.6-fold increase from 76.38 GW in 2014, while total non-fossil fuel capacity stood at 283.46 GW. India now ranks as the third-largest renewable energy market globally, having surpassed Brazil in installed renewable capacity. During FY26, the country achieved a record 55.3 GW addition in non-fossil capacity, including 44.61 GW of renewable energy, marking the highest annual capacity addition to date. Solar remained the primary growth driver, with installed capacity reaching 150.26 GW, a 53-fold increase since 2014, while wind capacity expanded to 56.09 GW, supported by a record 6.05 GW annual addition. Distributed renewable energy also gained significant momentum, contributing 16.3 GW or 36%, of total renewable installations through rooftop solar and the PM KUSUM programme.

The rapid growth of renewable energy capacity also highlighted the increasing complexity of scaling Indias clean energy ecosystem. While policy support, investor confidence, and financing activity remained robust, the industry continued to navigate execution challenges associated with transmission infrastructure, grid connectivity, renewable energy evacuation, land acquisition, and Right of Way (RoW) requirements, as well as the timely implementation of large-scale projects. During the year, geopolitical developments, currency movements, and volatility in key commodity and equipment prices also added to procurement and project cost pressures across the renewable energy value chain. Reflecting these evolving execution priorities, recent assessments by the Central Electricity Authority (CEA) and ICRA indicate that strengthening interstate transmission networks and accelerating grid augmentation will be critical to integrating rising renewable capacity and sustaining the next phase of growth. At the same time, evolving domestic manufacturing policies, competitive bidding dynamics, and supply-chain localisation initiatives are reshaping project execution strategies, placing greater emphasis on disciplined execution, resilient procurement, and timely project delivery.

Despite these execution priorities, the continued expansion of renewable capacity translated into a larger contribution to Indias electricity mix, underscoring the sectors growing role in strengthening energy security and supporting long-term decarbonisation. Renewable energy, including large hydro, accounted for 26.2% of total electricity generation during FY26, while non-fossil sources contributed 29.2% of overall power generation. Renewable energy generation (excluding large hydro) increased 21.1% year-on-year to 308.8 Billion units (BU), led by robust growth in solar and wind

generation. Backed by supportive government policies, expanding domestic manufacturing capabilities, rising investments, and the national target of 500 GW of nonfossil electricity capacity by 2030, Indias clean energy sector is well positioned to support long-term energy security, industrial competitiveness, and the countrys net-zero ambition.

Generation: Solar Sector

Solar continues to be the primary driver of Indias renewable energy expansion. Cumulative installed solar capacity reached 157.05 GW, comprising 118.79 GW of ground-mounted projects, 27.88 GW of grid-connected rooftop systems, 4.06 GW of hybrid projects, and 6.31 GW of off-grid installations. During FY26, India added approximately 44.6 GW of solar capacity, representing an 87% year-on-year increase, driven by strong utility-scale project execution and sustained policy support. Ground- mounted solar additions grew 106% over the previous year, while distributed renewable energy, including rooftop solar and PM-KUSUM installations, contributed 16.3 GW, accounting for 36% of total renewable capacity additions during the year. At the same time, project execution remained exposed to commodity and input- cost volatility, evolving sourcing requirements, grid connectivity constraints, and delays in land, transmission and statutory approvals. Supported by favourable government initiatives, declining technology costs, and rising demand for clean energy, solar continues to dominate Indias renewable energy capacity additions and remains central to the countrys energy transition.

Storage: Battery Energy and Storage Systems (BESS) Sector

Indias Battery Energy Storage System (BESS) sector witnessed accelerated growth in FY26, driven by the rapid expansion of renewable energy capacity and the increasing need for grid flexibility, reliability, and round-the-clock power supply. As battery storage becomes integral to balancing intermittent solar and wind generation, government support, competitive bidding, and increasing private sector participation have strengthened the deployment pipeline. However, the sector also navigated volatility in battery-cell and underlying commodity prices during the year, alongside competitive bidding conditions, making procurement discipline and careful assessment of project economics increasingly important. Policy initiatives, including ^9,100 Crore in Viability Gap Funding (VGF) to support 43.2 GWh of standalone BESS capacity, the ^18,100 Crore Production Linked Incentive (PLI) scheme for advanced chemistry cells, and the introduction of Energy Storage Obligations (ESO) for DISCOMs, have further accelerated investments and domestic manufacturing.

The Indian BESS market is estimated at $2.05 Billion in 2026 and is projected to reach $8.59 Billion by 2031, growing at a 33.2% CAGR. Lithium-ion batteries, particularly lithium iron phosphate (LFP) technology, account for over 92% of installed capacity, reflecting their cost competitiveness and operational efficiency. Looking ahead, the Central Electricity Authority estimates that India will require 236.2 GWh of BESS capacity by 2031-32 to support renewable energy integration and grid stability. With strong policy support and rising deployments, BESS is becoming integral to Indias future power infrastructure.

Consumption: Green Hydrogen, E-Fuels, and Compressed Biogas Sector

India is steadily strengthening the consumption ecosystem for green hydrogen, e-fuels, and compressed biogas (CBG), with demand increasingly driven by industrial decarbonisation, energy security, and supportive policy measures. Under the National Green Hydrogen Mission, the country targets 5 MMTPA of green hydrogen production by 2030, with early adoption expected across refineries and fertiliser plants, followed by steel, heavy transport, and city gas distribution. Green

hydrogen blending of up to 9% is already economically viable for steelmaking, while growing global demand for low-carbon materials and evolving carbon regulations are expected to further accelerate consumption. At scale, the transition to green hydrogen could reduce Indias fossil fuel import bill by $15-20 Billion annually, reinforcing its long-term strategic value.

The compressed biogas (CBG) sector is witnessing strong momentum and is emerging as one of Indias fastest- growing bioenergy segments. Around 170 CBG plants were operational by 2025, with nearly 300 additional plants under construction, taking planned production capacity to 3,700 tonnes per day (around 1.8 bcme annually). Under current policy, combined biogas and CBG supply is projected to grow 53% between 2025 and 2030, while CBG production alone is expected to increase more than seven-fold, supported by mandatory blending obligations rising from 1% in FY26 to 5% by FY29 and expanding city gas infrastructure. India also possesses an estimated 90 bcme of sustainable CBG production potential, equivalent to around 120% of its 2024 natural gas demand, underscoring the significant headroom for future renewable gas consumption.

Key Trends

in the Industry

Record Renewable Capacity Expansion

India achieved its highest-ever annual addition of nonfossil power capacity in FY26 and reached the milestone of 50% cumulative installed electricity capacity from non-fossil sources five years ahead of its 2030 target. The continued expansion of renewable capacity remains central to the countrys energy transition and long-term climate commitments.

Energy Storage Moves to the Mainstream

Battery Energy Storage Systems (BESS) are becoming an integral part of renewable energy deployment. Falling battery costs, growing utility-scale installations, and supportive policy measures are accelerating storage adoption to improve grid flexibility, renewable integration, and round-the-clock power availability.

Rise of Hybrid and Dispatchable Renewable Projects

The market is witnessing increasing deployment of hybrid projects combining solar, wind, and battery storage to deliver reliable and dispatchable clean power. Such solutions are improving asset utilisation, enhancing grid stability, and supporting the evolving energy needs of commercial, industrial, and utility customers.

Grid Modernisation and Transmission Strengthening

As renewable capacity expands, investments in transmission infrastructure, Green Energy Corridors, and digital grid management are becoming critical to ensure efficient evacuation, minimise curtailment, and strengthen power system reliability.

Green Hydrogen Ecosystem Gains Momentum

Indias National Green Hydrogen Mission continues to accelerate investments across renewable power, electrolyser manufacturing, and downstream applications. At the same time, growing global demand for low-emission fuels is strengthening opportunities for green hydrogen and its derivatives as key decarbonisation solutions for hard-to-abate sectors.

Digitalisation of Energy Infrastructure

AI-enabled monitoring, predictive maintenance, smart energy management, and digital asset optimisation are transforming renewable energy operations. The integration of digital technologies is improving asset performance, operational efficiency, and grid resilience while supporting the next phase of renewable energy growth.

Growth Drivers (India)23, 24

Government Programmes and Missions

National Green Hydrogen Mission is accelerating the development of a domestic green hydrogen ecosystem through incentives for electrolyser manufacturing, hydrogen production, and supporting infrastructure, positioning India as a global hub for clean fuels.

Flagship initiatives such as PM Surya Ghar: Muft Bijli Yojana, the Production Linked Incentive (PLI) Scheme for high-efficiency solar PV modules, the PLI Scheme for Advanced Chemistry Cell (ACC) batteries, and the PM- KUSUM Scheme continue to accelerate renewable energy deployment, strengthen domestic manufacturing across the solar and energy storage value chain, and promote decentralised clean energy adoption.

Policy and Regulatory Support

India has set ambitious clean energy goals, including 500 GW of non-fossil fuel capacity by 2030 and Net Zero by 2070, providing long-term policy certainty for renewable energy investments.

The Draft National Electricity Policy 2026 focuses on renewable energy integration, battery energy storage deployment, transmission expansion, grid modernisation, and improved DISCOM viability to support the next phase of energy transition.

Investment Momentum

The Union Budget FY27 increased the allocation to the Ministry of New and Renewable Energy (MNRE) by 40.5% to ^4-4,614.67 Crore, reinforcing the Governments commitment to accelerating clean energy deployment.

India is expected to attract over $360 Billion in renewable energy and associated infrastructure investments by 2030, while cumulative FDI into the renewable energy sector reached $21.9 Billion between April 2000 and March 2025.

Infrastructure and Manufacturing

India is strengthening domestic manufacturing across the renewable energy value chain through initiatives promoting solar PV modules, battery storage, electrolysers, and clean energy equipment, reducing import dependence and improving supply chain resilience.

Significant investments in transmission infrastructure, energy storage systems, and grid modernisation are supporting higher renewable energy penetration and enabling round-the-clock clean power.

Company Overview

About Oriana Power Limited

Oriana Power Limited is an integrated clean energy solutions provider operating across the renewable energy value chain, spanning power generation, energy storage, and clean energy consumption. Its diversified portfolio enables the Company to deliver end-to-end decarbonisation solutions for industrial, commercial, and utility customers, supporting the transition towards a low-carbon economy.

The Company has delivered over 835 MW of solar projects and has 700+ MW of solar capacity under execution, along with 1,000+ MWh of BESS projects under execution, with a presence across 24 states. The Company also has a presence in Africa and Latin America. Backed by strong execution capabilities, long-standing customer relationships, and repeat business, Oriana Power is well positioned to capitalise on the growing opportunities in the clean energy sector.

Key Offerings

• Generation

- Solar Solutions: The Company develops rooftop, ground-mounted, and floating solar power projects, delivering renewable energy solutions tailored to industrial, commercial, and utility-scale applications.

- Hybrid Energy Solutions: By integrating solar, wind, and battery storage technologies, the Company delivers reliable, round-the-clock renewable power while optimising energy efficiency and reducing dependence on conventional fuels.

• Storage

- Battery Energy Storage Systems (BESS): The

Company provides advanced energy storage solutions that store excess renewable energy,

Particulars

support peak-load management, enhance grid stability, and maximise renewable energy utilisation.

• Consumption

- Green Hydrogen and E-Fuels: The Company is developing green hydrogen, green ammonia, and e-fuels to enable industrial decarbonisation and provide low-carbon alternatives for transportation and other hard-to-abate sectors.

- Compressed Biogas (CBG): The Companys CBG solutions convert agricultural residues and organic waste into clean fuel, supporting resource efficiency, sustainable waste management, and the transition to a circular, low-carbon energy economy.

Financial Highlights

Oriana Power delivered another year of strong financial performance in FY26, supported by growth across its clean energy business despite a challenging operating environment for the renewable energy industry. Revenue from operations increased 1.84 times to ^1,81,367.23 Lakh from ^98,716.60 Lakh in FY25. EBITDA grew 1.73 times to ^42,536.70 Lakh, while Profit After Tax (PAT) rose 1.59 times to ^25,233.88 Lakh, demonstrating continued profitability alongside business growth. Earnings per share (diluted) increased to ^124.13 in FY26 from ^79.53 in FY25.

Consolidated Financial Highlights

Revenue from Operations: During FY26, the Company

reported revenue from operations of ^1,81,367.23 Lakh.

EBITDA: The EBITDA for the year stood at ^42,536.71 Lakh.

PAT and PAT Margin: The Company recorded a profit after tax (PAT) of ^25,233.88 Lakh, with a PAT margin of 13.91%.

EPS: The Company reported basic earnings per share (EPS) of ^124.19 in FY26.

Particulars	2026 (Audited)	Year Ended March 31, 2025 (Audited)
I. Revenue from Operations	1,81,367.23	98,716.60
II. Other Income	2,734.46	1,090.10
III. Total Income (I+II)	1,84,101.69	99,806.70
IV. Expenses
Cost of Material Consumed	1,32,286.67	71,928.68
Purchase of Stock-in-Trade	-	6.33
Changes in Inventory of Finished Goods, Work-in-Progress and	-	-
Stock-in-Trade
Employee Benefits Expense	4,804.68	1,631.63
Finance Costs	6,294.45	2,452.42
Depreciation and Amortisation Expense	1,576.34	849.08
Other Expenses	4,473.63	1,700.72
Total Expenses	1,49,435.77	78,568.86
V. Profit Before Extraordinary Items & Tax (III-IV)	34,665.92	21,237.84
VI. Extraordinary Items
Prior Period Items	-	-
Vll.Profit Before Tax (V-VI)	34,665.92	21,237.84
VIII. Tax Expense
Current Tax	9,587.45	5,869.84
Deferred Tax	(125.98)	(487.37)
Tax For Earlier Year	-	-
IX. Profit/(Loss) for the year (VII-VIII)	25,204.45	15,855.37
X. Minority Interest in Subsidiaries	(29.43)	(1.49)
XI. Profit/(Loss) for the year (IX-X)	25,233.88	15,856.86
Earnings Per Equity Share (INR)
(a) Basic	124.19	79.53
(b) Diluted	124.13	79.53

Segment-wise performance details are provided in Note No. 34 to the Consolidated Financial Statements.

Assets	FY26 (Audited)	FY25 (Audited)
(1) Non-Current Assets
(a) Property, Plant and Equipment, and Intangible assets
(i) Property, Plant, and Equipment	30,130.46	25,610.13
(ii) Capital Work-in-Progress	14,649.76	4,906.17
(iii) Intangible Assets	25.05	-
(iv) Intangible Assets Under Development	92.88	108.98
(v) Leased Asset	1,057.24	1,242.09
(b) Non-Current Investments	1,110.33	1,111.33
Deferred Tax Assets (Net)	188.35	64.76
(c) Long Term Loans and Advances	609.69	1,006.07
(d) Other non-current assets	4,606.30	10,747.93
(2) Current Assets
(a) Inventories	4,117.48	2,245.45
(b) Trade Receivables	67,114.36	39,415.34
(c) Cash and Bank Balance	28,608.11	7,038.61
(d) Short-Term Loans and Advances	36,218.86	9,220.83
(e) Other Current Assets	67,272.06	29,186.57
(e) Other Current Investment	525.93	-
TOTAL	2,56,326.86	1,31,904.26

 

Equity and Liabilities	FY26 (Audited)	FY25 (Audited)
1) Shareholders Funds
a) Share Capital	2,031.92	2,031.92
b) Reserves and Surplus	74,311.00	48,931.80
Minority Interest	778.18	798.44
2) Non-Current Liabilities
a) Long-Term Borrowings	32,843.76	22,012.19
b) Long-Term Provisions	257.93	94.07
c) Other Non-Current Liabilities	163.65	-
3) Current Liabilities
a) Short-Term Borrowings	18,011.32	5,049.29
b) Trade Payables
- Total Outstanding Dues of Micro Enterprises and Small Enterprises	4,136.49	335.30
- Total Outstanding Dues of Creditors Other than Micro Enterprises and Small Enterprises	16,817.42	18,210.37
c) Other Current Liabilities	1,01,955.08	32,896.35
d) Short-Term Provisions	5,020.11	1,544.53
TOTAL	2,56,326.86	1,31,904.26

A. STANDALONE FINANCIAL RATIOS

Particulars	FY26	FY25	Change
Debtors Turnover Ratio	3.29 times	4.30 times	(23.44%)
Inventory Turnover Ratio	42.40 times	41.55 times	2.01%
Interest Coverage Ratio	8.72 times	22.35 times	(60.98%)
Current Ratio	1.48 times	1.54 times	(4.21%)
Debt-Equity Ratio	0.34 times	0.07 times	410.02%
Net Profit Margin	14.74%	16.04%	(8.10%)
Return on Equity / RONW	40.36%	48.62%	(16.98%)
Debt Service Coverage Ratio	2.00 times	5.46 times	(63.37%)
Return on Capital Employed	38.71%	41.94%	(7.61%)
Return on Investment	5.78%	4.70%	23.00%

Explanations for Significant Changes in Standalone Ratios

1. Interest Coverage Ratio: The ratio decreased from 22.35 times to 8.72 times, primarily due to the increase in finance costs following additional borrowings availed for project execution, working capital requirements, and investment in the Companys renewable energy project pipeline. Although EBIT increased during the year, finance costs increased at a proportionately higher rate.

2. Debt-Equity Ratio: The ratio increased from 0.07 times to 0.34 times, primarily due to additional longterm and short-term borrowings availed during the year to support project execution, working-capital requirements, and investments in subsidiaries and project-specific entities. The increase is aligned with the expansion in the Companys scale of operations and project base.

3. Debt Service Coverage Ratio: The ratio decreased from 5.46 times to 2.00 times, primarily due to the increase in earnings available for debt servicing, supported by higher profitability and operating performance during the year.

4. Return on Equity / RONW: Although profit after tax increased during the year, average shareholders equity increased at a higher rate due to the accumulation of profits and strengthening of the Companys net-worth base. Consequently, ROE moderated from 48.62% to 40.36%.

B. CONSOLIDATED FINANCIAL RATIOS

Particulars	FY26	FY25	Change
Debtors Turnover	3.41 times	4.18 times	(18.48%)
Inventory Turnover	41.58 times	37.91 times	9.67%
Interest Coverage Ratio	6.51 times	9.66 times	(32.64%)
Current Ratio	1.40 times	1.50 times	(6.93%)
Debt-Equity Ratio	0.67 times	0.53 times	26.05%
Net Profit Margin	13.91%	16.06%	(13.38%)
Return on Equity / RONW	39.64%	48.36%	(18.02%)
Debt Service Coverage Ratio	1.75 times	2.55 times	(31.37%)
Return on Capital Employed	32.01%	30.05%	6.49%
Return on Investment	5.75%	4.74%	21.28%

Explanations for significant changes in consolidated ratios

1. Interest Coverage Ratio: The ratio decreased from 9.66 times to 6.51 times, primarily due to higher finance costs arising from additional borrowings availed for project execution, working-capital requirements, and expansion of the Groups renewable-energy portfolio. Although EBIT increased during the year, finance costs increased at a proportionately higher rate.

2. Debt-Equity Ratio: The ratio increased from 0.53 times to 0.67 times, primarily due to additional longterm and short-term borrowings availed during the year to support project execution, working-capital requirements, and investment in the Groups expanding renewable-energy project pipeline.

3. Return on Equity / RONW: Although consolidated profit after tax increased during the year, average shareholders equity increased at a higher rate due to the accumulation of profits and strengthening of the Groups net-worth base. Consequently, ROE moderated from 48.36% to 39.64%.

Challenges and Threats

• Regulatory Risks: The renewable energy sector is subject to evolving regulations, policy changes and revisions to incentive frameworks that may affect project economics, operations, and financial performance. Oriana Power actively monitors regulatory developments, engages with relevant authorities, and maintains robust compliance processes to adapt to the changing policy environment.

• Market Risks: Rapid technological advancements, evolving customer preferences, competitive intensity, and pricing pressures may influence demand and profitability. While the Company is not engaged in manufacturing, its technology-agnostic approach and diversified solutions portfolio enable it to respond effectively to changing market dynamics.

• Project Execution Risks: Delays arising from supply chain disruptions, cost escalations, resource constraints, or execution challenges may impact project timelines, customer satisfaction, and margins. These risks are mitigated through an experienced in-house project

management team, rigorous planning, disciplined execution, and continuous project monitoring.

• Financial Risks: Sustaining growth requires adequate liquidity, access to capital, and prudent financial management. Funding constraints, working capital pressures, or ineffective financial controls could affect business performance. The Company mitigates these risks through a diversified customer base, milestone-linked payment structures, and disciplined treasury management.

• Quality Risks: Dependence on advanced solar technologies exposes the business to risks relating to product quality, equipment performance, and technological obsolescence. Stringent vendor evaluation, comprehensive quality assurance protocols, and rigorous pre-commissioning inspections help ensure long-term system reliability and performance.

• Operational Risks: Operational disruptions arising from equipment failure, cyber threats, system downtime, or natural events may affect business continuity. The Company strengthens operational resilience through SCADA-enabled real-time monitoring, preventive maintenance practices, and robust operational controls.

• Environmental Risks: Climate-related events, evolving environmental regulations, and natural disasters may affect project performance and operational continuity. Comprehensive environmental compliance practices and appropriate insurance coverage for operating assets enhance the Companys resilience against such risks.

• Geopolitical Risks: Global trade disruptions, geopolitical developments, and policy changes may impact the availability and cost of critical components. The Companys diversified sourcing strategy, combined with the Government of Indias "Make in India" initiative for the solar sector, helps reduce supply chain dependence and strengthens business continuity.

Internal Control and Its Adequacy

The Companys Internal Control Framework is subject to continuous monitoring and periodic independent audits, which have affirmed its adequacy and effectiveness. The system is structured to uphold strong governance standards and protect corporate assets from unauthorised use or misappropriation. It emphasises rigorous

authorisation protocols, accurate documentation, and transparent financial reporting across all transactions. Furthermore, the framework incorporates measures to ensure optimal resource allocation, enhance operational efficiency, and maintain full compliance with all applicable legal and regulatory requirements.

Human Resources

Oriana Power is building a culture that values inclusion, safety, and growth. The Company continues to strengthen its people practices through initiatives that support employee well-being, engagement, and capability development. Safety awareness programmes, work-at-

height training, and health-focused initiatives reinforce a safe working environment, while POSH awareness, HR compliance sessions, and technical training equip employees with the knowledge and skills needed to succeed. Behavioural development workshops, financial literacy programmes, National Pension Scheme (NPS) awareness sessions, and CSR-led organ donation awareness initiatives further promote holistic employee development. The Company also fosters an inclusive workplace through equal opportunity practices, gender diversity initiatives, and a culture of respect and collaboration, reporting zero POSH complaints during FY26. Reflecting its continued growth, Oriana Power expanded its workforce to from 179 to 257 employees during FY26.