OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS
You should read the following discussion in conjunction with our restated financial statements attached in the chapter titled "Financial Information of the Company" beginning on page 196. You should also read the section titled "Risk Factors" on page 22 and the section titled "Forward Looking Statements" on page 20 of this Red Herring Prospectus, which discusses a number of factors and contingencies that could affect our financial condition and results of operations. The following discussion relates to us, and, unless otherwise stated or the context requires otherwise, is based on our Restated Financial Statements.
Our financial statements have been prepared in accordance with Indian GAAP, the Companies Act and the SEBI (ICDR) Regulations and restated as described in the report of our peer reviewed auditor dated July 07, 2026 which is included in this Red Herring Prospectus under "Financial Statements". The Restated Financial Information has been prepared on a basis that differs in certain material respects from generally accepted accounting principles in other jurisdictions, including US GAAP and IFRS. Our financial year ends on March 31 of each year, and all references to a particular financial year are to the twelve-month period ended March 31 of that year.
COMPANY OVERVIEW
We are a precision engineering company engaged in the manufacturing of aluminium die casting and machining components for use in the automotive sector, including electric vehicle applications and the non-automotive sector, covering agriculture, defence, energy, healthcare and engineering goods industry. Our manufacturing facilities include melting units, casting lines that support gravity die casting (GDC), low-pressure die casting (LPDC), high-pressure die casting (HPDC) and machining capabilities for component finishing processes. As on the date of this Red Herring Prospectus, we have over 600 SKUs, which also include certain safety-critical components used in automotive, electric vehicle and non-automotive applications. We endeavour to provide our customers with integrated solutions covering design, engineering, melting, casting, cleaning and value-added processes including machining, assembly and related engineering services.
We supply components such as bracket, compressor, intake manifold, cylinder head cover, assembly air intake manifold, camshaft carrier, clutch housing, cover front, oil filter holder (NA), elbow assembly etc. for the automotive sector. For the electric vehicle mobility sector, our supplies include transmission housings, brackets and housing bearing sleeve assembly. For the non-automotive sector, we supply drive box housing FA5, cast flange, elbow, turbo outlet, external conductor, contact carrier (fertigteil), upper bracket, conductor, carrier, drive box housing (FA1) etc. Over the years, we have expanded our product portfolio beyond the automotive sector to cater to the electric vehicle and non-automotive sectors, including agriculture, defence, energy, healthcare, engineering goods and other industries. We have recently entered the aerospace segment and have obtained vendor approval from a customer for the supply of our products, reflecting our focus on diversifying our customer base and end-use industries. For further information on our product offerings, see "Our Product Offerings" on page 137.
Our customer base has increased from 39 customers in Fiscal 2024 to 58 customers in Fiscal 2026, and we served approximately 56 customers during the Fiscal 2025. We have generated repeated business from 25 customers during the above periods. In the automobile segment, our customers include original equipment manufacturers and tier-1 automotive suppliers operating in the domestic market. We also export automobile components to customers in international markets including countries like Germany, United States, Italy and Switzerland. The table below sets out our revenue from operations for the automotive sector, electric vehicle segment and non-automotive sector for the periods indicated, based on our Financial Information: -
(Amount in Rs. Lakhs)
| Sector | 25-26 | % of Total Revenue | 24-25 | % of Total Revenue | 23-24 | % of Total Revenue |
Automobile Sector |
||||||
| Commercial vehicle | 14951.82 | 50.88% | 11431.73 | 51.49% | 9521 | 54.81% |
| Passenger vehicles | 4348.81 | 14.80% | 3268.18 | 14.72% | 3233.71 | 18.61% |
| Dies sales | 1410.55 | 4.80% | 886.49 | 3.99% | 1029.54 | 5.93% |
| 2 wheeler | 603.88 | 2.06% | 405.96 | 1.83% | 81.51 | 0.47% |
| Consumables | 14.00 | 0.05% | 2.38 | 0.01% | 9.65 | 0.06% |
Total |
21329.07 | 72.58% | 15994.75 | 72.05% | 13875.4 | 79.87% |
EV Sector |
||||||
| 3 wheeler EV | 2700.86 | 9.19% | 1840.53 | 8.29% | 979.79 | 5.64% |
| 4 wheeler EV | 124.22 | 0.42% | 24.02 | 0.11% | 9.45 | 0.05% |
| Dies sales | 57.64 | 0.20% | 76.9 | 0.35% | 75.55 | 0.43% |
Total |
2882.72 | 9.81% | 1941.44 | 8.75% | 1064.79 | 6.13% |
Non-automobile Sector |
||||||
| Energy | 3095.02 | 10.53% | 2256.31 | 10.16% | 1706.77 | 9.82% |
| Agriculture | 809.05 | 2.75% | 481.55 | 2.17% | 188.28 | 1.08% |
| Structural parts | 583.28 | 1.98% | 235.8 | 1.06% | 191.01 | 1.10% |
| Dies sales | 495.11 | 1.68% | 1126.59 | 5.07% | 192.95 | 1.11% |
| Defence | 102.38 | 0.35% | 124.04 | 0.56% | 75.71 | 0.44% |
| Health care | 88.91 | 0.30% | 28.42 | 0.13% | 77.32 | 0.45% |
| Others | - | - | 11.03 | 0.05% | - | - |
Total |
5173.75 | 17.61% | 4263.74 | 19.21% | 2432.03 | 14.00% |
Grand Total |
29385.54 | 100.00% | 22199.93 | 100.00% | 17372.22 | 100.00% |
Our Company was incorporated on August 12, 1992 and was engaged in the business of aluminium castings. In 2007, we commenced operations at our manufacturing facility located at Gat No. 253/1A, Chakan - Talegaon Road, Kharabwadi, Chakan, Pune, Maharashtra, 410501. To address increasing demand, we established a second manufacturing facility at Gat No. 251/1, Plot No. 9, 10, 11, 13 (old GAT No. 2787/1), Talegaon Chakan Road, Kharabwadi, Chakan Industrial Area, Pune, Maharashtra, 410501, which started operations during the year 2021. We currently operate abovementioned two manufacturing facilities with a combined melting capacity of 13800 MT (annual) and casting and finishing capacity of approx. 6000MT (annual) as on March 31, 2026, supporting melting, casting, cleaning, engineering and machining operations. Our plant and machinery which included equipment from the melting stage to the finishing stage, covering melting furnaces, casting machines, trimming and cutting equipment, machining and associated material-handling and auxiliary systems, support the manufacturing of casting and precision components through gravity die casting (GDC), low pressure die casting (LPDC) and high pressure die casting (HPDC) processes. We are in the process of establishing an additional manufacturing unit in Pune ("Unit III"), which will be used for the production of components similar to those manufactured at our existing facilities by utilizing the net proceeds from the IPO. We are also undertaking a diversification into the manufacturing of precision components using magnesium. For this purpose, we are setting up Unit IV, to carry out sample development and submission activities for magnesium components until customer and OEM approvals are obtained.
Our in-house design and engineering functions support the development of a range of precision engineering components and solutions and have enabled us to expand our business across different sectors. We also undertake reverse engineering activities to support customer design requirements. Our reverse engineering process involves the examination and deconstruction of customer-provided sample components to generate design data, develop drawings and prepare prototypes/models. These activities are supported by X-ray machines used for internal structure assessment of components, enabling the identification of internal profiles, cavities and dimensional characteristics required for product development. Our design and engineering team comprises 17 employees and is equipped with tools and software such as Adstefan, casting simulation software, Solidcam Bundle standard software etc., which facilitate activities relating to design development, analysis, modelling and engineering support for customers.
We have established quality management systems that support compliance with customer requirements, industry standards and certification norms. Our facilities hold ISO 14001:2015 and ISO 45001:2018 certifications for the manufacturing of machined and assembled aluminium alloy castings at Gat No. 251/1, Plot Nos. 9, 10, 11 and 13, Chakan Talegaon Road, Kharabwadi, Pune; ISO 9001:2015 certification for the facility at Gat No. 253/1A, Kharabwadi, Chakan, Pune; and IATF 16949:2016 certifications for both the above facilities. Also, our existing manufacturing facilities are subject to periodic audits by customers and certification authorities. Further, before being appointed as a supplier to OEMs or their vendors in the automotive and electric vehicle segments, we undergo a qualification and assessment process that includes facility evaluations, process audits and testing of sample components. Components supplied to automotive customers also undergo customer-specific inspection and validation procedures before purchase orders are issued. Over the years, we have received awards from customers for quality excellence, product development and supplier performance, including awards such as the Best Project Award-I Quality Improvement, Innovative Approach for Development, Quality Excellence Award, Best Casting Competition, Best Supplier Award, Gold Award etc. from our customers.
Our business operations are overseen by our management team, Key Managerial Personnel ("KMP") and Senior Managerial Personnel ("SMP"), who supervise functions relating to manufacturing, engineering, finance, supply chain, quality, marketing and operations. The Board is chaired by Anil Shivajirao Kulkarni, Chairman and Whole-Time Director, who has experience of around 32 years in the field of aluminium die casting, tooling and engineering manufacturing sectors. The day-to-day management of the Company is led by Sanket Anil Kulkarni, Managing Director, who has experience of over 16 years in the casting and engineering industry, and is responsible for overall strategic leadership, production, operations, quality, finance, business development, driving profitability through cost optimization, productivity improvement, and capacity utilization, oversight to tooling, die design, casting processed and continuous improvement initiatives. Further, Rahul Sohanlal Ranka, our Whole Time Director has an experience of over 25 years in the alloy manufacturing, casting, manufacturing, and engineering sectors. He is responsible for overall commercial operations, driving margin improvement through effective product costing, yield optimization, and price negotiations, leading commercial negotiations with OEMs, Tier-1 customers, and export clients, managing raw material procurement, vendor contracts, and business expansion initiatives. They are supported by senior personnel overseeing production, quality, design and engineering, programme management, supply chain, human resources and administration. The Board of Directors provides overall direction and monitors the performance of the Companys business units. For further details regarding the profiles, roles and responsibilities of our Directors, senior management and KMP, see "Our Management" on page 170.
The table below sets out some of our financial and other metrics as at and for the financial years ended March 31, 2026, March 31, 2025 and March 31, 2024, based on our Restated Financial Information:
Key Financial Performance |
FY 2025-26 | FY 2024-25 | FY 2023-24 |
| Revenue from operations (1) | 29385.54 | 22199.93 | 17372.22 |
| EBITDA(2) | 5177.65 | 3988.50 | 2745.29 |
| EBITDA Margin(3) | 17.62% | 17.97% | 15.80% |
| PAT(4) | 3090.28 | 2393.08 | 1609.65 |
| PAT Margin(5) | 10.52% | 10.78% | 9.27% |
| Net Worth (6) | 13316.21 | 8619.79 | 6483.41 |
| Return on Equity(7) | 28.18% | 31.69% | 27.82% |
| RoCE (%)(8) | 26.38% | 32.27% | 29.74% |
Notes:
(1)
‘Revenue from Operations means the Revenue from Operations as appearing in the Restated Financial Statements (2) ‘EBITDA is calculated as Profit before tax + Depreciation + Total Interest Expenses - Other Income (3) ‘EBITDA Margin is calculated as EBITDA divided by Revenue from Operations (4) ‘PAT is calculated as Profit before tax Tax Expenses (5) ‘PAT Margin is calculated as PAT for the period/year divided by revenue from operations.(6)
‘Net worth means Equity share capital + Reserves and surplus (including, Securities Premium, General Reserve and surplus in statement of profit and loss). (7) ‘Return on Equity is the ratio of Restated Profit after Tax and Average Shareholders Equity.(8)
‘Return on Capital Employed is calculated as EBIT divided by capital employed, which is defined as shareholders equity plus total borrowings {current & non-current} and deferred tax.STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
For details in respect of Statement of Significant Accounting Policies, please refer to Restated Financial Statements beginning on page 196 of this Red Herring Prospectus.
Factors that may affect the results of operations include but are not limited to the following:
1. General economic and business conditions in the markets in which we operate and in the local, regional, national and international economies;
2. Changes in focus or change in Government Policies towards Auto Components Industry;
3. Any change in government policies resulting in increase in taxes payable by us;
4. Our ability to retain our key managements persons and other employees;
5. Our ability to protect our intellectual property rights and not infringing intellectual property rights of other parties;
6. Our inability to accurately forecast demand for our products and manage our inventory;
7. Changes in laws and regulations that apply to the Auto Components Industry in which we operate;
8. Our failure to keep pace with rapid changes in technology;
9. Our ability to grow our business;
10. Our ability to make interest and principal payments on our existing debt obligations and satisfy the other covenants contained in our existing debt agreements; 11. General economic, political and other risks that are out of our control; 12. Companys ability to successfully implement its growth strategy and expansion plans; 13. Failure to comply with regulations prescribed by authorities of the jurisdictions in which we operate; 14. Inability to successfully obtain registrations in a timely manner or at all; 15. Occurrence of environmental problems & uninsured losses; 16. Conflicts of interest with affiliated companies, the promoter group and other related parties; 17. Any adverse legal proceedings initiated against our company or its promoters, directors and KMPs; 18. Concentration of ownership among our Promoters; and 19. The performance of the financial markets in India and globally.
Discussion on Result of Operations
The following discussion on results of operations should be read in conjunction with the Restated Financial Statements for the years ended on March 31, 2026, March 31, 2025, and March 31, 2024.
( In Lakhs)
| For the Year Ended | ||||||
| Particulars | 31-03-2026 | % of Total Income | 31-03-2025 | % of Total Income | 31-03-2024 | % of Total Income |
| Revenue from Operations | 29385.54 | 99.54 | 22199.93 | 99.64 | 17372.22 | 99.50 |
| Other Income | 134.39 | 0.46 | 80.11 | 0.36 | 86.50 | 0.50 |
Total Income |
29519.93 | 100.00 | 22280.04 | 100.00 | 17458.72 | 100.00 |
Expenses: |
||||||
| (a) Cost of Material Consumed | 13727.73 | 46.50 | 10078.26 | 45.23 | 7622.53 | 43.66 |
| (b) Purchase of Stock-in-Trade | - | - | - | |||
| (c) Changes in inventories of finished goods, work-in-progress and stock-in-trade | -1235.58 | -4.19 | -441.50 | -1.98 | 22.71 | 0.13 |
| (d) Employee Benefits Expense | 2599.94 | 8.81 | 2011.88 | 9.03 | 1657.87 | 9.50 |
| (e) Finance Costs | 435.20 | 1.47 | 270.28 | 1.21 | 251.48 | 1.44 |
| (f) Depreciation and Amortization Expense | 652.00 | 2.21 | 589.42 | 2.65 | 416.33 | 2.38 |
| (g) Other Expenses | 9094.26 | 30.81 | 6551.36 | 29.40 | 5319.41 | 30.47 |
Total Expenses |
25273.56 | 85.62 | 19059.71 | 85.55 | 15290.33 | 87.58 |
Profit Before Tax |
4246.37 | 14.38 | 3220.33 | 14.45 | 2168.39 | 12.42 |
| a) Current Tax | 1120.18 | 3.79 | 808.53 | 3.63 | 547.33 | 3.13 |
| b) Deferred Tax | 35.91 | 0.12 | 18.73 | 0.08 | 11.41 | 0.07 |
Tax Expense |
1156.09 | 3.92 | 827.26 | 3.71 | 558.74 | 3.20 |
Profit for the Period |
3090.28 | 10.47 | 2393.08 | 10.74 | 1609.65 | 9.22 |
Revenue from Operations
Revenue from operations comprises revenue from manufacturing and selling of aluminium die casting and machining components for use in the automotive sector, including electric vehicle applications and the non-automotive sector.
Other Income
Other income includes (i) Interest on Bank Deposits; (ii) Other Interest Income; (iii) Foreign Exchange Fluctuation Gain etc.
Expenses
Our expenses comprise (i) Cost of Material consumed; (ii) employee benefits expense; (iii) finance costs; (iv) depreciation and amortisation expense; and (v) other expenses.
Employee Benefit Expense
Employee benefit expenses primarily include (i) salaries wages and other expenses; (ii) director remuneration (iii) contributions to statutory fund; and (iv) gratuity and leave encashment expenses.
Depreciation and Amortization expenses
Depreciation and amortization expenses primarily include depreciation expenses on our office Plant & machinery, Building, furniture and computers etc.
Other Expenses
Other expenses comprise (i) Contract Labour Charges; (ii) Power and fuel; (iii) Offloading Charges; (iv) Professional and Consulting Fees; (v) Carriage Outwards; (vi) Travelling Expense; (vii) Rent; (viii) Repairs and Maintenance -Machinery; (ix) CSR Expenditure; and (x) other miscellaneous expenses.
Financial Performance Highlights for the Year Ended on March 31, 2026 (Based on Restated Financial Statements)
Total Income
Total income for the year ended on March 31, 2026 stood at Rs. 29519.93 Lakhs, which includes revenue from operation amounting to Rs. 29385.54 lakhs and other income of Rs. 134.39 lakhs.
Revenue from Operations
During the year ended on March 31, 2026 revenue from operations stood at Rs. 29385.54 Lakhs. The revenue from operations includes the revenue from manufacturing and selling of aluminium die casting and machining components for use in the automotive sector, including electric vehicle applications and the non-automotive sector.
Other Income
During the year ended on March 31, 2026, other income was Rs. 134.39 Lakhs. Major portion of the other income includes interest income on FDR other interest income.
Cost of Material consumed
During the year ended on March 31, 2026, cost of material consumed stood at Rs. 13727.73 lakhs. This is the major portion of the total expenses of the company representing 46.50% of the total income of the Company.
Employee benefits expenses
Our Company has incurred Rs. 2599.94 Lakhs as employee benefits expense for the year ended on March 31, 2026.
Finance Costs
Finance cost for the year ended March 31, 2026 was Rs. 435.20 Lakhs. The finance cost of the company includes interest on borrowings, Statutory Dues, MSME Dues and other fees and charges.
Depreciation and amortization expenses
Depreciation for the Year ended March 31, 2026 was Rs. 652.00 Lakhs.
Other expenses
Other Expenses for the year ended March 31, 2026 stood at Rs. 9094.26 Lakhs.
Restated Profit before tax:
The Company reported Restated profit before tax for year ended March 31, 2026 of Rs. 4246.37 Lakhs.
Restated profit after tax:
The Company reported Restated profit after tax for Year ended March 31, 2026 of Rs. 3090.28 Lakhs.
Comparison of Financial Year 2026 with Financial Year 2025 (Based on Restated Financial Statements)
Total Income
Our total income has increased by 32.49% to Rs. 29519.93 lakhs in fiscal 2026 from Rs. 22280.04 lakhs in Fiscal 2025. The total income has increased as the revenue from the operations has increased from Rs. 22199.93 lakhs in fiscal year 2025 to Rs. 29385.54 lakhs representing an increase of 32.37%, the increase in revenue from operations was pursuant multiple factors, the sale from automobile products increased from Rs. 15994.75 lakhs in FY2025 to Rs. 21329.07 lakhs in FY2026, further, the sale from electric vehicle segment increased from Rs. 1941.44 lakhs in FY2025 to Rs. 2882.72 lakhs in FY2026 representing an increase of 48.48% and non-automobile sector increased from Rs. 4263.73 lakhs in FY2025 to Rs. 5173.75 lakhs in FY2026 representing an increase of 21.34%. Also, our other income was Rs. 80.11 lakhs in Fiscal 2025, which has increased by 67.76% to Rs. 134.39 lakhs in Fiscal 2026. The main reason for such increase was increase in the foreign exchange fluctuation gain.
Revenue from Operations
Our revenue from operations has increased from Rs. 22199.93 lakhs in fiscal year 2025 to Rs. 29385.54 lakhs representing an increase of 32.37%. The increase in revenue from operations was pursuant multiple factors, the sale from automobile products increased from Rs. 15994.75 lakhs in FY2025 to Rs. 21329.07 lakhs in FY2026, further, the sale from electric vehicle segment increased from Rs. 1941.44 lakhs in FY2025 to Rs. 2882.72 lakhs in FY2026 representing an increase of 48.48% and non-automobile sector increased from Rs. 4263.73 lakhs in FY2025 to Rs. 5173.75 lakhs in FY2026 representing an increase of 21.34%.
Other Income
Our other income was Rs. 80.11 lakhs in Fiscal 2025, which has increased by 67.76% to Rs. 134.39 lakhs in Fiscal 2026. The other income majorly comprises of Interest on Bank Deposits, Interest from Other Parties and Foreign Exchange Fluctuation Gain. The main reason for such increase was increase in the foreign exchange fluctuation gain which increased from Rs. 7.25 lakhs to Rs. 64.48 lakhs.
Expenses
Our total expenses increased from Rs. 19059.71 lakhs in Fiscal 2025 to Rs. 25273.56 lakhs in Fiscal 2026, representing an increase of 32.60%. The increase was primarily attributable to higher cost of materials consumed, employee benefits expense, finance costs, depreciation and amortization expense and other expenses. The increase in these expenses was broadly in line with the growth in our operations and revenue during Fiscal 2026.
Cost of Material Consumed
The cost of material consumed increased from Rs. 10078.26 lakhs to Rs. 13727.73 lakhs representing an increase of approximately 36.21%. The main reason for increase in the cost of goods sold was due to increase in the production, the revenue from operation of the Company and increase in the prices of the material required for production. The actual production of the company increased from 6704 MT in FY2025 to 10982 MT in FY2026 for melting activity and the actual production for casting and machining activities increased from 3352 MT in FY2025 to 5049 MT in FY2026. Further, the increase in cost of material was attributable to increase in the purchase of aluminium which is the major raw material, the consumption of aluminium increased from Rs. 7689.28 Lakhs in FY2025 to Rs. 9943.04 lakhs, also, the consumption of other consumables increased from Rs. 641.74 lakhs to Rs. 1002.40 lakhs respectively.
Employee benefits expenses
Employee benefit expenses increased by 29.23% from Rs. 2011.88 lakhs in Fiscal 2025 to Rs. 2599.94 lakhs in Fiscal 2026. Such increase was due to new employees hired in the different departments which lead to the increase in the salaries and wages from Rs. 998.88 lakhs in FY2025 to Rs. 1416.93 lakhs in FY2026, and consequently the contribution to provident and other funds, gratuity expense, leave encashment and staff welfare expense increased. Further, the Directors Remunerations Including Incentives also increased from Rs. 778.00 lakhs to Rs. 879.35 lakhs in FY2026.
Finance costs
Our finance costs increased by 61.02% from Rs. 270.28 lakhs in Fiscal 2025 to Rs. 435.20 lakh in Fiscal 2026. The main reasons for increase in the finance cost was increase in the interest on borrowings and other fees and charges pursuant to the new loans availed by the company during the year. The total outstanding borrowings of the company at the end of Fiscal 2025 were Rs. 1953.54 lakhs which increased to Rs. 4115.86 lakhs at the end of Fiscal year 2026.
Depreciation and amortization expenses
Depreciation, and amortization expenses increased by 10.62% from Rs. 589.42 lakhs in Fiscal 2025 to Rs. 652.00 lakhs in Fiscal 2026. The company works on high capex model which requires company to invest regularly in the fixed assets, that is why the expenses of the company has increased for depreciation and amortization. The Gross block of the company for the period increased from Rs. 8531.84 lakhs in Fiscal 2025 to Rs. 11050.37 lakhs in Fiscal 2026 pursuant to the addition of around 2525.18 lakhs in the fixed assets of the Company.
Other expenses
Other expenses increased by 38.81% from Rs. 6551.36 lakhs in Fiscal 2025 to Rs. 9094.26 lakhs in Fiscal 2026. The main reason for increase in the other expenses was pursuant to the increase in the major expenses of the company with incudes offloading charges, Contract labour charges, power and fuel cost, carriage outward and discount allowed. The offloading charges was Rs. 2161.67 Lakhs in FY 2025 and increased to Rs. 3033.47 lakhs in FY 2026, there was an increase of Rs. 871.81 lakhs i.e. 40.33% as compared to FY 2025. Further contract labour charges has increased from Rs. 1721.51 lakhs in FY 2025 to Rs. 2538.43 lakhs in FY 2026, the increase of Rs. 816.92 lakhs i.e. 47.45% is attributable to increase in production during the year. The power and fuel cost also increased during the year from Rs. 1384.99 lakhs to Rs. 1969.97 lakhs due to increase in power consumption, increase in fuel cost in the factory. Further carriage outward has increased from Rs. 131.38 lakhs in FY 2025 to Rs. 257.00 lakhs in FY 2026.
Tax Expenses
Tax expenses increased by 38.55% from Rs. 808.53 lakhs in Fiscal 2025 to Rs. 1120.18 lakhs in Fiscal 2026. Increase in the tax expenses is on account of increase in the revenue and resulting profits of the company.
Profit after Tax
The profit after tax of the company increased from Rs. 2393.08 lakhs in the Fiscal 2025 to Rs. 3090.28 lakhs in the Fiscal 2026 representing an increase of 29.13%. The increase in the PAT was the resultant of the increase in revenue of the company which increased by 32.37%. Growth was driven by higher sales across segments, particularly the EV segment and the non-automobile segment as explained above. Further total expenses increased from Rs. 19059.71 lakhs in Fiscal 2025 to Rs. 25273.56 lakhs in Fiscal 2026, representing an increase of 32.60%. The increase was primarily attributable to higher cost of materials consumed, employee benefits expense, finance costs, depreciation and amortization expense and other expenses. The cost of material consumed increased from Rs. 10078.26 lakhs to Rs. 13727.73 lakhs representing an increase of approximately 36.21%. The main reason for increase in the cost of goods sold was due to increase in the production during the year, Employee benefit expenses increased by 29.23%. Depreciation, and amortization expenses increase from Rs. 589.42 lakhs in Fiscal 2025 to Rs. 652.00 lakhs in Fiscal 2026. Other expenses increased by 38.81% from Rs. 6551.36 lakhs in Fiscal 2025 to Rs. 9094.26 lakhs in Fiscal 2026. Due to the increase in the abovementioned expenses the PAT margins of the company contracted from 10.78% in FY2025 to 10.52% in FY2026, however, due to increase in the revenue of the company at a higher proportion the profit after tax increased from Rs. 2393.08 lakhs in the Fiscal 2025 to Rs. 3090.28 lakhs in the Fiscal 2026.
Comparison of Financial Year 2025 with Financial Year 2024 (Based on Restated Financial Statements)
Total Income
Our total income has increased by 27.62% to Rs. 22280.04 lakhs in fiscal 2025 from Rs. 17458.72 lakhs in Fiscal 2024. The total income has increased as the revenue from the operations has increased from Rs. 17372.22 lakhs in fiscal year 2024 to Rs. 22199.93 lakhs representing an increase of 27.79%, the increase in revenue from operations was pursuant multiple factors, the sale from
automobile products increased from Rs. 13875.40 lakhs in FY2024 to Rs. 15994.75 lakhs in FY2025, further, the sale from electric vehicle segment increased from Rs. 1064.79 lakhs in FY2024 to Rs. 1941.44 lakhs in FY2025 representing an increase of 82.33% and non-automobile sector increased from Rs. 2432.03 lakhs in FY2024 to Rs. 4263.73 lakhs in FY2025 representing an increase of 75.32%. Further, this lead to increase in the share of EV and non-automobile sector in the revenue of the company from 20.12% in FY2024 to 27.94% in FY2025. Also, our other income was Rs. 86.50 lakhs in Fiscal 2024, which has decreased by 7.39% to Rs. 80.11 lakhs in Fiscal 2025. The main reason for such decrease was decrease in the foreign exchange fluctuation gain and sundry balance written off.
Revenue from Operations
Our revenue from operations has increased Rs. 17372.22 lakhs in fiscal year 2024 to Rs. 22199.93 lakhs representing an increase of 27.79%. The increase in revenue from operations was pursuant multiple factors, the sale from automobile products increased from Rs. 13875.40 lakhs in FY2024 to Rs. 15994.75 lakhs in FY2025, further, the sale from electric vehicle segment increased from Rs. 1064.79 lakhs in FY2024 to Rs. 1941.44 lakhs in FY2025 representing an increase of 82.33% and non-automobile sector increased from Rs. 2432.03 lakhs in FY2024 to Rs. 4263.73 lakhs in FY2025 representing an increase of 75.32%. Further, this lead to increase in the share of EV and non-automobile sector in the revenue of the company from 20.12% in FY2024 to 27.94% in FY2025.
Other Income
Our other income was Rs. 86.50 lakhs in Fiscal 2024, which has decreased by 7.39% to Rs. 80.11 lakhs in Fiscal 2025. The main reason for such decrease was decrease in the foreign exchange fluctuation gain and sundry balance written off.
Expenses
Our total expenses increased from Rs. 15,290.33 lakhs in Fiscal 2024 to Rs. 19,059.71 lakhs in Fiscal 2025, representing an increase of 24.65%. The increase was primarily attributable to higher cost of materials consumed, employee benefits expense, finance costs, depreciation and amortization expense and other expenses. The increase in these expenses was broadly in line with the growth in our operations and revenue during Fiscal 2025.
Cost of Material Consumed
The cost of material consumed increased from Rs. 7622.53 lakhs to Rs. 10078.26 lakhs representing an increase of approximately 32.22%. The main reason for increase in the cost of goods sold was due to increase in the production, the revenue from operation of the Company and increase in the prices of the material required for production. The actual production of the company increased from 6036 MT in FY2024 to 6704 MT in FY2025 for melting activity and the actual production for casting and machining activities increased from 3018 MT in FY2024 to 3352 MT in FY2025.
Employee benefits expenses
Employee benefit expenses increased by 21.35% from Rs. 1657.87 lakhs in Fiscal 2024 to Rs. 2011.88 lakhs in Fiscal 2025. Such increase was due to new employees hired in the different departments which lead to the increase in the salaries and wages cost, contribution to provident and other funds, gratuity and leave encashment.
Finance costs
Our finance costs increased by 7.47% from Rs. 251.48 lakhs in Fiscal 2024 to Rs. 270.28 lakh in Fiscal 2025, primarily due to increase in total debt from Rs. 1428.05 lakhs in Fiscal 2024 to Rs. 1953.54 lakh in Fiscal 2025.
Depreciation and amortization expenses
Depreciation, and amortization expenses increased by 41.58% from Rs. 416.33 lakhs in Fiscal 2024 to Rs. 589.42 lakhs in Fiscal 2025. The company works on high capex model which requires company to invest regularly in the fixed assets, that is why the expenses of the company has increased for depreciation and amortization. The Gross block of the company for the period increased from Rs. 6575.31 lakhs in Fiscal 2024 to Rs. 8531.84 lakhs in Fiscal 2025.
Other expenses
Other expenses increased by 23.16% from Rs. 5319.41 lakhs in Fiscal 2024 to Rs. 6551.36 lakhs in Fiscal 2025. The main reason for increase in the other expenses was pursuant to the increase in the major expenses of the company with incudes (i) Contract Labour Charges which increased by 33.06%; (ii) Power and fuel which increased by 24.01%; (iii) Offloading Charges which increased by 25.21%; (iv) Professional and Consulting Fees which increased by 13.12%; (v) Carriage Outwards which increased by 13.98%; (vi)
Travelling Expense which increased by 59.61%; (vii) Rent which increased by 2.34%; (viii) Repairs and Maintenance -Machinery which decreased by 2.35%; (ix) CSR Expenditure which increased by 47.58% and (x) other miscellaneous expenses.
Tax Expenses
Increase in the tax expenses is on account of increase in the revenue and resulting profits of the company.
Profit after Tax
The profit after tax of the company increased from Rs. 1609.65 lakhs in the Fiscal 2024 to Rs. 2393.08 lakhs in the Fiscal 2025 representing an increase of 48.67%. The increase in the PAT was the resultant of the increase in revenue of the company which increased by 27.79 %. Growth was driven by higher sales across segments, particularly the EV segment (up 82.33%) and the non-automobile segment (up 75.32%). Further total expenses increased from Rs. 15,290.33 lakhs in Fiscal 2024 to Rs. 19,059.71 lakhs in Fiscal 2025, representing an increase of 24.65%. The increase was primarily attributable to higher cost of materials consumed, employee benefits expense, finance costs, depreciation and amortization expense and other expenses. The cost of material consumed increased from Rs. 7622.53 lakhs to Rs. 10078.26 lakhs representing an increase of approximately 32.22%. The main reason for increase in the cost of goods sold was due to increase in the production, Employee benefit expenses increased by 17.16%. Depreciation, and amortization expenses increase from Rs. 416.33 lakhs in Fiscal 2024 to Rs. 589.42 lakhs in Fiscal 2025. Other expenses increased by 23.16% from Rs. 5310.41 lakhs in Fiscal 2024 to Rs. 6551.36 lakhs in Fiscal 2025. Due to the reasons mentioned above PAT margin has increased from 9.27 % in FY 2024 to 10.78% in FY 2025.
Information required as per Item (II)(C)(iv) of Part A of Schedule VI to the SEBI Regulations:
An analysis of reasons for the changes in significant items of income and expenditure is given hereunder:
1. Unusual or infrequent events or transactions
There has not been any unusual trend on account of our business activity. Except as disclosed in this Red Herring Prospectus, there are no unusual or infrequent events or transactions in our Company.
2. Significant economic changes that materially affected or are likely to affect income from continuing operations.
There are no significant economic changes that may materially affect or likely to affect income from continuing operations.
3. Known trends or uncertainties that have had or are expected to have a material adverse impact on sales, revenue or income from continuing operations.
Apart from the risks as disclosed under Section "Risk Factors" beginning on page 22 of the Red Herring Prospectus, in our opinion there are no other known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations.
4. Future changes in relationship between costs and revenues
Other than as described in the sections "Risk Factors", "Our Business" and "Managements Discussion and Analysis of Financial Condition and Results of Operations" on pages 22, 135 and 259 respectively, to our knowledge, no future relationship between expenditure and income is expected to have a material adverse impact on our operations and finances.
5. Segment Reporting
Our business activity primarily falls within a single business and geographical segment, other than as disclosed in "Financial information of the Company –Annexure AC- Restated Summary Statement of Related Party Transaction" on page 238 we do not follow any other segment reporting
6. Status of any publicly announced New Products or Business Segment
Except as disclosed in the Chapter "Our Business", our Company has not announced any new product or service.
7. Seasonality of business
Our business is not directly subject to seasonality. However, the timing and volume of orders received from our customers particularly in the automobile sector, may be influenced by seasonal factors affecting their respective industries and business operations. Consequently, our operating results may be impacted to the extent our customers adjust their procurement schedules or order volumes
in response to such trends. For further information, see "Industry Overview" and "Our Business" on pages 120 and 135, respectively of this Red Herring Prospectus.
8. Dependence on single or few customers
Our business is dependent on few top customers of the Company. The concentration of our revenue is depended on our top customers. For the Fiscals 2026, 2025 and 2024, our top 5 clients contributed 74.72%, 78.41% and 84.42% respectively, to the total revenue from operations. Further, for the Fiscals 2026, 2025 and 2024, our top 10 clients contributed 88.64%, 90.63% and 96.00% respectively, to the total revenue from operations.
9. Competitive conditions
Competitive conditions are as described under the Chapters "Industry Overview" and "Our Business" beginning on pages 120 and 135, respectively of this Red Herring Prospectus.
10. Details of material developments after the date of last balance sheet i.e. March 31, 2026
Except as mentioned below, there is no material development that has taken effect after the date of last Balance sheet i.e. March 31, 2026 –
1. We have appointed Shalaka Satish Khandelwal as the Company Secretary & Compliance Officer of the Company due to resignation of Bhavana Phoolchand Tak from the position of Company Secretary & Compliance Officer with effect from June 26, 2026 approved by the board in its meeting held on June 26, 2026.
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+91 9892691696
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