Pix Transmission Ltd Management Discussions

This Management Discussion and Analysis Report has been prepared in compliance with Regulation 34 read with Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI LODR Regulations"). The following discussion and analysis should be read in conjunction with the Companys financial statements and notes thereto for the financial year ended March 31, 2026.

Overview of the Economy

Indias macroeconomic environment remains relatively robust, though external risks are elevated. Crude oil prices have emerged as the most critical macro variable given their impact on inflation, external balances, currency stability, and corporate profitability. At the same time, Indias domestic fundamentals continue to remain resilient. Healthy domestic liquidity, policy support, improving manufacturing momentum, and ongoing structural capex trends continue to provide stability to the broader growth outlook.

Review of Operations

As expected, FY 26 presented challenges on multiple fronts. At the beginning of the year, Operation Sindoor and its aftermath greatly impacted the sentiment across the country. Subsequently, the additional tariffs levied on Indian exports to the U.S. proved to be another stumbling block for growth. Finally, the current crisis in West Asia continues to pose challenges given that the Strait of Hormuz is the passage for one-fifth of the worlds energy supply. Not only is this uncertainty greatly impacting the price of crude and fertilizers, but causing unprecedented depreciation in the INR.

We do believe that the current crisis will continue to cause uncertainty in the short-to-medium term on account of heightened geopolitical, sharp movements in crude oil prices, currency volatility, and evolving global monetary policy expectations. As such, we continue to exercise all precautionary measures to best manage the current situation.

a. Industry Structure and Developments

The Company operates in the power transmission rubber belts segment, which forms an integral part of the industrial and automotive value chain. These products are used across diverse sectors including automotive (OEM and replacement), agriculture, industrial machinery, mining, cement, steel, and textiles.

The industry is characterized by the presence of both organized and unorganized players. However, the organized segment continues to gain share owing to increasing quality consciousness, regulatory compliance requirements, and demand for reliable and high-performance products.

Key industry developments include:

Growth in automotive aftermarket driven by increasing vehicle population.

Rising infrastructure and industrial activities leading to higher demand for industrial belts.

Technological advancements in product design and materials.

Increasing export opportunities supported by Indias cost competitiveness.

Shift towards energy-efficient and durable transmission solutions.

b. Opportunities and Threats

Opportunities

Expansion in manufacturing and infrastructure sectors.

Increasing demand for specialized and high-performance belts.

Growth in export markets.

Mechanization in agriculture and industrial automation.

Strong replacement demand in automotive aftermarket.

Threats

Volatility in raw material prices (natural rubber, synthetic rubber, petrochemicals).

Intense competition from domestic and international players.

Technological obsolescence or substitution risks.

Foreign exchange fluctuations impacting exports.

Cyclical nature of end-user industries.

Geopolitical tensions.

c. Segment-wise or Product-wise Performance

The Company is engaged in the single segment of V-belts. The broad product categories include:

V-Belts

Timing Belts

Poly-V Belts

Industrial Belts

Special Construction Belts

Each product category has contributed in the overall sales performance of the Company for the FY 2026. The financial highlights of the Company are discussed in the Directors Report and in this report as well.

d. Outlook

The outlook for the Company remains positive in the medium to long term, supported by expected growth in infrastructure, manufacturing, automotive, and agricultural sectors.

The Company continues to focus on:

Strengthening its market position.

Increasing presence in export markets.

Enhancing operational efficiencies and cost management.

Investing in research & development and product innovation.

e. Risks and Concerns

The Company has identified the following key risks and concerns which may impact its operations and financial performance:

Supply chain disruptions.

Dependence on automotive and industrial sectors.

Regulatory and environmental compliance risks.

The Company has in place appropriate risk management systems to identify, monitor and mitigate these risks on a continuous basis.

f. Internal Control Systems and their Adequacy

The Company has adequate internal control systems commensurate with the size and nature of its business.

These systems are designed to ensure:

Orderly and efficient conduct of business.

Safeguarding of assets.

Prevention and detection of frauds and errors.

Accuracy and completeness of accounting records.

Timely preparation of reliable financial information.

The Company has an internal audit system conducted by independent professionals. The Audit Committee of the Board periodically reviews the internal audit reports and the adequacy and effectiveness of internal control systems.

g. Discussion on Financial Performance with respect to Operational Performance

The financial performance of the Company during the year under review is summarized below:

( in lacs)

	Standalone		Consolidated
Particulars	31.03.2026	31.03.2025	31.03.2026	31.03.2025
1. Income
a) Revenue from Operations	53,016.34	55,564.77	58,231.47	59,340.51
b) Other Income	1,842.54	1,416.74	1,745.97	1,363.69
Total Income (a+b)	54,858.88	56,981.51	59,977.44	60,704.20
2. Total Expenses	42,391.08	42,818.01	45,567.64	45,452.61
3. Profit before exceptional items and tax (1-2)	12,467.80	14,163.50	14,409.80	15,251.59
4. Exceptional Item	-	-	-	-
5. Profit Before Tax (3-4)	12,467.80	14,163.50	14,409.80	15,251.59
6. Total Tax Expenses	3,259.47	3,626.53	3,721.08	3,963.96
7. Profit After Tax (5-6)	9,208.33	10,536.97	10,688.72	11,287.63

h. Material Developments in Human Resources / Industrial Relations Front

The Company recognizes that its employees are its key assets and continues to focus on human resource development.

Industrial relations remained cordial throughout the year.

The Company undertook various training and development initiatives to enhance employee capabilities. Continued focus on safety, health, and welfare of employees.

Employee engagement initiatives were strengthened.

The total number of permanent employees on the rolls of the Company as on March 31, 2026 was 283.

i. Key Financial Indicators and changes thereof

Please refer to the financial statements for the key final indicators, changes thereof and the reasons of change.

Cautionary Statement

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions, changes in government regulations, tax regime, input costs, and other factors beyond the control of the Company.