Poojawestern Metaliks Ltd Management Discussions

The following discussion provides an overview of the operational and financial performance of the Company during the financial year 2025?26, along with the managements perspective on the future outlook. The analysis is based on current economic and industry conditions and may vary based on future developments, changes in government policies, and market dynamics.

ECONOMIC OVERVIEW-GLOBAL AND INDIA:

Global Economy

The global economy remained resilient during FY 2025?26 amid persistent geopolitical tensions, evolving trade policies, commodity-price volatility and disruptions to global supply chains. Economic activity was supported by resilient domestic demand, improving manufacturing conditions in several economies and continued investment in infrastructure, technology and energy transition. At the same time, heightened trade uncertainties, elevated energy prices and geopolitical developments continued to pose challenges to global growth and inflation.

The manufacturing and industrial sectors continued to generate demand for non-ferrous metals, supported by applications across construction, electrical and engineering industries, automotive and mobility, renewable energy, power infrastructure and consumer durables. The ongoing global focus on electrification, energy efficiency, infrastructure development and supply-chain diversification is expected to support the long-term demand outlook for copper, brass and other non-ferrous metal products.

Indian Economy Outlook

India continued to be one of the fastest-growing major economies during FY 2025?26, supported by robust domestic demand, sustained public capital expenditure, healthy financial sector fundamentals and continued momentum in the manufacturing and services sectors. Government initiatives such as Make in India, the Production Linked Incentive (PLI) Scheme, PM Gati Shakti, and significant investments in infrastructure, housing, railways and urban development continued to strengthen the countrys industrial ecosystem. These developments are expected to drive sustained demand for brass products used in plumbing, sanitaryware, electrical equipment, industrial machinery and engineering applications. Indias strong macroeconomic fundamentals, favourable demographic profile and policy focus on manufacturing and infrastructure continue to position the country as an attractive destination for industrial growth and investment

INDUSTRY STRUCTURE AND DEVELOPMENTS

Global Brass Industry and Developments

Brass is witnessing significant growth in the market due to increasing demand in the industrial sectors of construction, automotive, and electrical. Brass is an alloy primarily comprising copper and zinc that offers good mechanical properties along with corrosion resistance. It is used in several applications due to its good conductivity and antimicrobial properties. With the continued pace of urbanisation and infrastructure development around the globe, the demand for brass-based products and components continues to grow.

Moreover, the brass market benefits from an increased focus on sustainable and recyclable materials. Its high recyclability factor makes brass an eco-friendly option for the manufacturer and the end user, all of which resonate with the new global intent for sustainability and circular economy functions.

Improvements in the manufacturing technologies are rapidly increasing the rate of change in the brass industry. Automating and smart manufacturing methods, based on the principles of Industry 4.0, are transforming the brass industries. As a result, there are precision techniques coupled with CNC machining that go a long way toward making brass pieces with tighter tolerances and superior surface finishes, where modern applications are there for high demanding requirement.

The principal growth drivers for the brass market include the global boom in infrastructure development and rapid urbanization. The versatility of the material in construction applications and industrial machinery supports expanding market demand. Furthermore, the growing automotive and electronics sector contributes significantly to market expansion.

The recyclability and durability of the brass products resonate well with international sustainability endeavors, leading to market growth. The recyclable characteristic of brass without losing any valuable properties increases its appeal to all eco-friendly industries and consumers.

In conclusion, the brass market is still changing due to the influence of technological advancement, the issue of sustainability, and more applications in industries. Though it faces issues related to raw material cost and environmental regulations, this market is really strong in growth and thus facilitated by infrastructure development and industrial automation. With the resurgence of most world economies and the widespread principle of sustainability, the brass market shall continue on its upward trajectory, as innovation and environmentalism set its course.

Indian Brass Industry And Developments

India has a well-established brass manufacturing ecosystem, with applications spanning plumbing and sanitary fittings, electrical components, automotive parts, engineering products and building hardware. The industry is supported by Indias expanding manufacturing base, infrastructure development, urbanisation and increasing demand for precision-engineered components.

Jamnagar is one of Indias major brass manufacturing clusters and has a significant concentration of brass manufacturing units, with more than 3,000 large and small workshops manufacturing brass products and components. The Bureau of Energy Efficiency also identifies approximately 3,500 brass units in the Jamnagar cluster, comprising foundries, extrusion, machining and electroplating units.

The Government of Indias Districts as Export Hubs initiative identifies “Brass Articles” as a key export product of Jamnagar, highlighting the districts importance in Indias brass manufacturing and export ecosystem.

The Indian brass industry continues to benefit from demand across automotive, electrical, construction and industrial applications. Market research also indicates a positive medium-term outlook; 6W Research currently projects the India Brass Market to grow at a CAGR of 7.9% during 2026?2032, while its India Brass Bars report projects 5.1% CAGR for 2025?2031. These figures relate to different market definitions and should therefore be treated as market-research estimates rather than official Government forecasts.

The industry, however, remains exposed to fluctuations in copper and zinc prices, energy costs, foreign exchange movements, supply-chain conditions and competition from alternative materials. Increasing adoption of automation, precision machining and energy-efficient manufacturing is expected to support productivity, product quality and competitiveness across the sector. The Bureau of Energy Efficiency notes that brass manufacturing is energy-intensive and identifies significant potential for energy and renewable-energy efficiency improvements within the sector.

Government Initiatives

The Government of India has undertaken several initiatives to support traditional artisans, MSMEs, manufacturing and exports. The PM Vishwakarma Scheme, launched on September 117, 2023 with an outlay of Rs.13,000 crore for FY 2023?24 to FY 2027?28, provides eligible artisans with recognition, skill upgradation, a toolkit incentive of up to Rs.15,000, collateral-free credit support of up to Rs.3 lakh in two tranches at a concessional interest rate of 5%, along with digital transaction incentives and marketing support. As of December 2025, the scheme had achieved its target of 30 lakh beneficiary registrations, with significant progress in skill training, credit support and distribution of modern toolkits.

The Government is also promoting sustainable metal utilisation through the Non-Ferrous Metal Scrap Recycling Framework, developed by the Ministry of Mines to strengthen the recycling ecosystem for non-ferrous metals.

In the export sector, the Government has introduced measures including the Export Promotion Mission and a Credit Guarantee Scheme for Exporters, providing 100% credit guarantee coverage for additional collateral-free credit facilities of up to Rs.20,000 crore to eligible exporters, including MSMEs. These measures are aimed at strengthening export competitiveness, improving access to finance and supporting diversification into global markets.

OUR BUSINESS

Founded in 1991 in Jamnagar, India, Pooja Western Metaliks Ltd. has established itself as a manufacturer and exporter of Brass Plumbing Fittings, Brass Ingots, Brass Pipe Inserts, and Brass Sanitary Fittings. Over the years, we have built a strong reputation for delivering quality products backed by advanced technology and a dedicated team of experts.

Poojawestern Metaliks Limited is one of the manufacturers of automotive brass components in India, catering to leading Tier-1 manufacturers and OEMs across the automotive industry.

With a clear focus on innovation, quality, and affordability, we specialize in manufacturing reliable sanitary and plumbing solutions. Guided by our core philosophy ? “The Customer is the Crown of Our Business” ? we have successfully expanded our footprint from India to the Gulf, Middle East, Europe, and America.

Our state-of-the-art foundry has the capacity to produce large volumes of brass solids and hollow bars every day. Following the concept of “everything under one roof, we have developed in-house facilities for forging, machining, and finishing, ensuring end- to-end quality control.

In addition, our robust vendor management systems and efficient supply chain operations have enabled us to build lasting partnerships with suppliers and customers across the globe.

OUR BRAND PORTFOLIO

At Pooja Western Metaliks Ltd., we take pride in offering a wide range of precision-engineered brass products under distinct brand names, each representing quality, innovation, and trust.

Sr. No.	Name Products
1. P-Alloys	Specialized in high-grade raw materials for diverse industrial needs:
	• Brass Ingots
	• Brass Billets
	• Brass Bars
	• Hex/ Round / Square Rods
	• Section Hollow
2. Plumbing & Pipe Solutions	Crafted to ensure strength, durability, and seamless installation:
	• Brass & Chrome Pipe Fittings
	• Pipe Clamps
	• Regular CP & Brass Fittings
3.Precision Moulding Inserts	Delivering accuracy and reliability for moulding applications:
	• Brass Moulding Inserts
	• Adaptors & Fittings
4.Fluid & Gas Handling Fittings	Designed for safety, precision, and performance:
	• Brass Compression Fittings
	• Brass Pex Fittings
	• Brass Hose Fittings
	• Brass Gas Fittings
5. Advanced Machined Components	Produced using CNC & VMC technology for customized solutions:
	• Turned & Variable Parts
	• Specialized Brass Alloys

Alloys

We sell Brass Ingots, Brass Billets, Brass Bars, Hex/ Round/ Square Hod & Section Hollow under the brand name of P-Alloys. Our Product Range for Trading

We are engaged in trading of brass honey and brass scrap. We generally procure containers of those from international as well as domestic market and sell it domestically.

Our Product Range for Unit II

We manufacture Brass & Chrome sanitary fittings, Brass insert and adapter for CPVC pipes & PPR pipe fittings, CNC, SPM and VMC turned.

PRODUCT-WISE PERFORMANCE

During FY2025?26, Poojawestern Metaliks Limited continued to strengthen its presence in the brass and non-ferrous metal industry, offering products such as brass and copper alloys, brass fittings, inserts, and customized metal components. On a standalone basis, revenue from operations increased from Rs.50.37 crore in FY2024?25 to Rs.53.94 crore in FY2025?26, registering a growth of approximately 7.09%. On a consolidated basis, revenue from operations stood at Rs.74.57 crore in FY2025?26. The Consolidated Financial Statements of the Company include the financial results of Sierra Metal Industries Private Limited (formerly known as Sierra Automation Private Limited), reflecting the contribution of its subsidiary to the overall consolidated performance.

The Company continues to focus on product quality, customization, manufacturing capabilities, and operational efficiency. Its portfolio serves applications across plumbing, automotive, industrial and other sectors, helping it cater to varied customer requirements. The Company also undertakes manufacturing, trading and export activities in brass and non-ferrous metal products.

OUTLOOK

The Company remains focused on strengthening its position in the brass manufacturing and export industry by leveraging its manufacturing capabilities, product quality and established customer base. Demand for brass products is expected to remain supported by applications across plumbing, sanitaryware, electrical, automotive, construction and engineering sectors.

Going forward, the Company will focus on improving operational efficiency, product quality and capacity utilisation through technology upgradation and process improvements. It will also continue to strengthen its recycling, waste- management and resource-efficiency practices.

At the same time, it will remain mindful of challenges arising from fluctuations in raw-material prices, foreign exchange movements, global economic conditions and changes in international trade policies.

With a focus on quality, innovation, efficiency and sustainable business practices, the Company aims to achieve steady growth and create long-term value for its stakeholders.

OPPORTUNITIES

India is one of the leading countries in the manufacturing and export of brass products. Gujarat, especially Jamnagar, is the main production and supply center, where our companys head office and manufacturing unit are located.

Jamnagar is widely recognized as the city of high-quality custom brass parts and accessories.

The brass industry is expected to grow in the coming years, driven by the increasing demand for brass in a variety of applications. Some of the key opportunities for the brass industry, which are advantageous to the company, are as follows:

• Growing Demand Across Sectors: Increasing use of brass components in automotive, electrical, plumbing, construction, and consumer goods sectors is driving steady market growth.

• Rising Focus on Sustainability: Growing environmental awareness is boosting demand for recycled brass products, leveraging Jamnagars access to high-quality imported scrap material.

• Government Support: Various government schemes provide financial assistance, skill development, toolkits, and export incentives, helping businesses scale and modernize.

• Export Potential: Expanding global markets and improved export facilitation open new avenues for international sales, especially with adherence to stringent global quality standards.

• Infrastructure and Smart City Projects: Large- scale infrastructure development and smart city initiatives increase the demand for durable, corrosion- resistant brass fittings and components.

• Technological Advancements: Adoption of advanced manufacturing technologies allows improved precision, efficiency, and product innovation, giving a competitive edge.

THREATS / RISK AND CONCERNS

However, the brass industry is also facing many challenges, some of the key challenges which acts as threats to the Company are as follows:

• Volatility in Raw Material Prices: Frequent fluctuations in global copper and zinc prices directly impact the cost of brass production, affecting profit margins and pricing strategies.

• Dependence on Scrap Imports: The Jamnagar brass industry remains highly dependent on imported scrap sourced from Europe, America, and other countries, any disruption in global trade, shipping costs, or regulatory changes can affect raw material availability.

• Compliance and Certification Requirements: Meeting strict international quality and environmental standards requires continuous investment in testing, certification, and quality control infrastructure.

• Global Competition: Rising competition from low- cost manufacturing countries such as China, Vietnam, and Turkey poses a significant challenge to Indian brass manufacturers. These countries can offer lower manufacturing costs, putting pressure on Indian companies to remain competitive in terms of pricing, efficiency and product quality, and potentially affecting their ability to maintain or expand their global market share.

The company has adopted various measures to mitigate operational and market-related risks, including diversifying its customer base, implementing appropriate pricing mechanisms to manage fluctuations in raw-material costs, and investing in research and development. These measures help reduce the companys exposure to customer concentration, input-cost volatility, and competitive pressures.

By serving customers across multiple industries, the company reduces its dependence on any single customer or sector and limits the impact of fluctuations in demand. In addition, the companys pricing mechanisms enable it to appropriately incorporate changes in input costs into product prices, thereby helping protect margins during periods of raw-material price volatility. Continued investment in R&D supports product innovation, process improvements, and the development of new technologies, strengthening the companys competitive position.

Going forward, the company remains focused on expanding its customer base, enhancing product and technology development, and improving operational efficiency. These initiatives are expected to strengthen its ability to manage emerging risks and support sustainable long-term growth.

INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY

The company maintains a comprehensive internal financial control system tailored to its size and operations. This system ensures timely and accurate financial reporting, safeguards company assets, and ensures compliance with relevant laws and regulations. Regular reviews by internal auditors assess the effectiveness of these controls, with any recommended improvements promptly implemented. Additionally, the companys audit committee thoroughly reviews the internal audit reports to oversee and strengthen the control framework.

Financial Performance and Review of Operations

The key strategy will be focused around:

1. Technological Innovation and Modernization - Adopting advanced machinery, automation, and smart manufacturing processes to enhance productivity and precision.

2. Customer Base Diversification - Expanding into new geographies and industries, ensuring a well-balanced and resilient customer portfolio.

3. Strict Quality Control and Compliance - Maintaining world-class quality standards through stringent testing and international certifications.

4. Investment in Research and Development - Driving product innovation, new alloy development, and tailored solutions for emerging industry needs.

5. Leveraging Government Support and Incentives - Capitalizing on policy initiatives and export promotion schemes to boost competitiveness.

6. Expansion of Export Markets - Strengthening our presence across Europe, America, Middle East, and Asia-Pacific, with a sharper focus on high-growth regions.

7. Sustainable and Environmentally Friendly Practices - Prioritizing recycling, energy efficiency, and green production processes in line with global ESG standards.

8. Operational Efficiency and Cost Optimization - Streamlining supply chain, vendor management, and in-house processes to maximize value creation.

The Financial Performance of the Company as on March 31, 2026 stands at:

(Amount in lakhs)

Particulars	Standalone		Consolidated
	FY 2025-26	FY 2024-25	FY 2025-26	FY 2024-25
Revenue from operations	5,394.07	5036.58	7,456.55	5036.58
Other income	83.19	108.35	137.75	108.35
Total Income	5,477.26	5144.93	7,594.30	5144.93
Less: Total Expenses before Depreciation, Finance Cost and Tax	5140.7	4678.90	7079.46	4678.90
Operating Profits before Depreciation, Finance Cost and Tax	336.56	466.03	514.84	466.03
Less: Finance cost	131.66	150.85	153.51	150.85
Less: Depreciation	82.96	102.38	124.58	102.38
Profit / (Loss) Before Tax	121.94	212.81	236.75	212.81
Less: Current Tax	30.69	70.42	49.85	70.42
Less: MAT Credit	-	-	-	-
Less: Deferred Tax	2.65	(13.04)	27.19	(13.04)
Profit/ (Loss) after tax (PAT)	88.61	155.43	159.71	155.43
Earnings per Equity Share	0.87	1.53	1.57	1.53

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS

The Company continues to maintain cordial and harmonious industrial relations across all levels. We recognize that our employees are our most valuable asset, and their dedication, skill, and commitment have been pivotal in driving the Companys growth and expansion.

As of March 31, 2026, the Company had a total workforce of 30 employees. We have consistently fostered a culture of inclusivity, collaboration, and performance, while ensuring a safe and conducive work environment. Our approach to human resources emphasizes merit-based recruitment, diversity, and equal opportunity. The Company is committed to building a diverse and inclusive workforce and continues to provide opportunities for professional development, skill enhancement, and employee engagement.

Going forward, the Company will continue to invest in human capital, focusing on employee well-being, training initiatives, and fostering a high-performance culture aligned with our strategic objectives.

KEY FINANCIAL RATIOS

Ratio	Figures As At 31.03.2026	Figures As At 31.03.2025	% Change From Last Year	Explanation for Change in Ratio (for more than 25% in comparison with last year)
Current ratio	1.35	1.24	8.87%	-
Debt- Equity Ratio	1.25	1.55	-19.35%	-
Debt Service Coverage ratio	1.10	1.96	-43.88%	Lower operating profit (EBITDA) severely reducing the cash cushion available to meet mandatory bank debt obligations.
Return on Equity ratio	0.06	0.12	-50.00%	Drop in net profit directly cutting the financial return generated on the shareholders capital base.
Inventory turnover ratio	3.21	3.16	1.58%	-
Trade Receivable Turnover Ratio	6.12	5.45	12.29%	-
Trade Payable Turnover Ratio	21.80	16.35	33.33%	Faster supplier payment frequency to maintain vendor goodwill despite lower overall profitability
Net Capital Turnover Ratio	8.37	8.71	-3.90%	-
Net Profit ratio	0.02	0.03	-33.33%	Reduction in net profit after tax resulting from diminished operational earnings and fixed financing costs.
Return on Capital Employed	0.17	0.27	-37.04%	Decreased operating profit (EBIT) leading to poorer earning efficiency on the total debt and equity capital base.
Return on investment	0.37	0.35	5.71%	-
Interest Coverage Ratio	1.93	2.41	-19.92%	-
Operating Profit Margin	0.05	0.07	-28.57%	Primarily driven by a higher proportional increase in the cost of materials consumed compared to revenue growth.

DISCLOSURE OF ACCOUNTING TREATMENT

The financial statements of the Company have been prepared in accordance with Indian Accounting Standard (“IND AS”) as prescribed under Section 133 of the Companies Act, 2013, read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards Amendment Rules 2016.

CAUTIONARY STATEMENT

Statement in this report describing the Companys objectives projections estimates and expectation may constitute “forward looking statement” within the meaning of applicable laws and regulations. Forward looking statements are based on certain assumption and expectations of future events. These Statements are subject to certain risk and uncertainties. The Company cannot guarantee that these assumption and expectations are accurate or will be realized. The actual results may different from those expressed or implied since the Companys operations are affected by many external and internal factors which are beyond the control of the management. Hence the Company assumes no responsibility in respect of forward-looking statements that may be amended or modified in future on the basis of subsequent developments information or events.

For and on behalf of Board of Directors	Sd/-	Sd/-
Poojawestern Metaliks Limited	Anil Devram Panchmatiya	Sunil Devram Panchmatiya
CIN: L27320GJ2016PLC094314	Whole time Director	Chairman and Managing Director
Registered office: Plot No. 1, Phase II, GIDC, Dared Jamnagar- 361004, Gujarat	DIN: 02080763	DIN: 02080742
Date: August 20, 2026
Place: Jamnagar