Raghav Productivity Enhancers Ltd Management Discussions

Global Economy

Overview

The global economy in 2025 evolved within a complex and increasingly uncertain macroeconomic environment, characterised by trade restrictions, policy uncertainty and persistent geopolitical tensions. Ongoing conflicts in Eastern Europe and the Middle East, including the Russia-Ukraine war, continued to disrupt global supply chains, energy markets and investor sentiment, resulting in periodic volatility in commodity prices and financial conditions. In addition, increasing tariffs, evolving trade arrangements, and geoeconomic fragmentation contributed to uncertainty around global trade flows and investments.

Despite these challenges, global economic activity remained resilient during the year, supported by stable labour markets, continued fiscal support and technology-led investments, particularly in artificial intelligence (AI). Economies also adapted through diversified trade routes, stronger energy security measures and supply chain realignment, supporting a relatively stable recovery. Consequently, global growth stood at 3.4% in 2025, compared to 3.3% in 2024.

Advanced economies expanded by 1.9% in CY 2025, supported by relatively stable labour markets, easing financial conditions and recovering demand, while emerging market and developing economies (EMDEs) grew by 4.4%, driven by resilient domestic consumption, improving manufacturing and services activity and continued infrastructure investment across key Asian economies.

Global headline inflation moderated to 4.1% in 2025, reflecting easing supply-side pressures and the impact of prior monetary tightening. However, inflation trends remained uneven across regions, with inflation remaining above target in the United States while staying relatively subdued across several other major economies.

Outlook

As 2026 unfolds, the global economy faces renewed uncertainty driven largely by escalating tensions in West Asia and disruptions across critical energy transit routes. Heightened risks around oil, LNG and fertiliser supplies have increased concerns over energy security, inflationary pressures and supply chain stability. Against this backdrop, global growth is projected to moderate to 3.1% in 2026 before improving marginally to 3.2% in 2027. However, improving diplomatic efforts, strategic energy diversification, and stronger regional cooperation are expected to gradually ease these pressures, supporting supply chain stability, moderating inflation, and fostering a balanced and resilient global economic recovery.

Advanced economies are expected to grow at 1.8% in 2026, while EMDEs are projected to grow by 3.9%, supported by domestic demand and infrastructure spending. Growth in the United States (U.S.) remains a key driver of the global outlook, with the IMF raising the U.S. forecast, with GDP projected to grow by about 2.3% in 2026 and 2.1% in 2027. Central banks are expected to remain cautious, while governments continue to focus on fiscal discipline, targeted policy support and strengthening supply chain resilience amid an evolving global economic landscape.

Indian Economy

The Indian economy remained one of the fastest-growing major economies in FY26, supported by resilient domestic demand, infrastructure-led investment and policy reforms. According to the Second Advance Estimates released by the National Statistical Office (NSO), real GDP is estimated to grow by 7.6% in FY26, driven by strong private consumption and investment activity. The services sector remained the key growth driver, while manufacturing witnessed continued improvement supported by government-led production initiatives and infrastructure spending. Real GVA is estimated at 294.40 Lakhs Crores, reflecting growth of 7.7% over FY25.

Real GDP Growth

Global Advanced Economies

Emerging M arkets and Developing Economies

*E stands for Estimated *P stands for Projected [Source: IMF World Economic Outlook April 2026/

India continues to remain among the worlds largest economies, currently ranking as the sixth-largest economy globally in nominal GDP terms as per the IMF. Structural reforms such as GST, Production Linked Incentive (PLI) schemes, and Make in India 2.0 continue to improve formalisation, manufacturing competitiveness and ease of doing business, while strengthening Indias position within global supply chains. Manufacturing activity remained strong, with the HSBC India Manufacturing PMI rising to 54.7 in April 2026, supported by domestic demand and higher output levels.

The conflict in West Asia and disruptions across global trade routes have created fresh uncertainty around energy prices, logistics and availability of critical industrial inputs. As an import-dependent economy for crude oil and intermediate goods, India remains exposed to global supply chain disruptions and commodity price volatility. However, diversified sourcing strategies, domestic manufacturing capabilities and integration with emerging markets are helping mitigate external risks and support industrial continuity.

The governments large-scale investments, reforms and flagship initiatives, such as Make in India, Product-Linked Incentive (PLI) Schemes, have been instrumental in fostering industrial growth. The PLI scheme has attracted investments of approximately 2.16 Lakhs across 14 key sectors, in line with the national goals like Atmanirbhar Bharat and Indias vision of a US$ 5 Trillion economy.

Indias Index of Industrial Production (IIP) registered a growth of 4.1% in March 2026, supported by 4.3% growth in the Manufacturing sector and 5.5% growth in Mining activity, reflecting continued resilience in industrial and infrastructure-led economic activity.

Inflation moderated significantly during the year, with the RBI lowering its CPI inflation forecast for FY26 to 2.0%, supported by favourable supply conditions and easing food prices. In response, the RBI reduced the repo rate cumulatively to 5.25%, supporting credit availability and investment activity. Indias exports are projected to approach US$ 1 Trillion in FY27, strengthened by trade agreements, manufacturing scale-up and improving export competitiveness.

Indias GDP Growth

(Source: Tradinaeconomics. MOSPI. RBI. PIB. Fortuneindia)

Outlook

Indias GDP growth for FY26 is estimated at 7.4%, driven by the double engine of consumption and investment. It reaffirms Indias status as the fastest-growing major economy for the fourth consecutive year. The nation is expected to reach a US$ 30-35 Trillion economy by 2047, entering the league of developed nations. Structural reforms and sustained growth momentum are driving this rapid progress, while digital and physical infrastructure are also expanding significantly.

Amid persistent trade policy uncertainties, geopolitical tensions, and tighter financial conditions, Indias growth outlook remains resilient, supported by strong domestic consumption, easing inflation, and a revival in private investments. Initiatives such as Make in India 2.0 will prioritise emerging and high-growth sectors while improving the business environment. The PLI scheme continues to act as a catalyst

for scaling manufacturing, boosting exports, and enhancing Indias competitiveness. Improved rural consumption, driven by moderating inflation, further bolsters this growth trajectory.

Indias Union Budget FY27 emphasises public investment by raising the capital expenditure (capex) outlay to a record 12.2 Lakh Crore. This nearly 9% increase from the previous years estimate of 11.2 Lakh Crore is intended to sustain economic momentum and fulfil the governments Viksit Bharat vision for a developed India. Capital expenditure is prioritised in the budget, with allocations directed towards roads, railways, ports, airports, power transmission and urban infrastructure.

[Source: PB, Global Economic Cooperation (GEC))

Industry Overview

Global Steel Industry

The global steel industry continues to remain a pillar of industrial and infrastructure development, supporting sectors such as construction, transportation, engineering, automotive, and capital goods. Steel demand globally is driven by urbanisation, infrastructure investments, industrial manufacturing, and renewable energy transition projects across both developed and emerging economies.

According to the World Steel Association, global crude steel production stood at 1,849.4 MT in 2025, compared to 1,882.6 MT in 2024. This reflected a marginal decline of 2.0% amid subdued demand in certain regions and geopolitical and trade-related uncertainties. China remained the worlds largest steel producer with output of 960.8 MT in 2025, while India retained its position as the second-largest producer with crude steel production of 164.9 MT, registering robust growth of 10.4% year-on-year.

Globally, the induction furnace (IF) route continues to play a significant role in secondary steel production, particularly in emerging economies. This is primarily due to its lower capital requirement, operational flexibility, energy efficiency, and suitability for scrap-based steelmaking. Focus on sustainable steel production, reduced carbon emissions, and recycling-led manufacturing is likely to support greater adoption of electric- and induction-furnace-based steelmaking routes in the coming years.

Globally, steel production is increasingly shifting towards electric-route steelmaking owing to its lower carbon intensity, higher energy efficiency and alignment with sustainability goals. According to World Steel Association data, around 29%-30% of global steel production is currently undertaken through electric-route furnaces, including Electric Arc Furnaces (EAFs) and Induction Furnaces (IFs), with the share steadily increasing in recent years. Electric-route steelmaking accounted for approximately 29.1% of global steel production in 2024 compared to 28.6% in 2023, reflecting the industrys gradual transition towards cleaner steel production technologies.

The induction furnace route has gained significant relevance, particularly across emerging economies such as India, due to its relatively lower capital investment, operational flexibility and suitability for long steel production. Rising infrastructure investments, urbanisation, scrap utilisation and increasing focus on decarbonisation are expected to further strengthen demand for electric-route steelmaking globally. Since silica ramming mass is an essential refractory material used in induction furnaces owing to its high thermal stability and corrosion resistance, the growing adoption of electric-route steel production continues to support long-term demand growth for the silica ramming mass industry

The global steel industry is expected to witness a gradual recovery, supported by infrastructure investments, manufacturing activity, and demand across developing economies. According to the World Steel Associations Short-Range Outlook (April 2026), global steel demand is projected to grow by 0.3% to 1,772 MT in 2026, and by a further 2.2% to 1,762 MT in 2027, led by demand from India and improving global economic conditions. Despite near-term geopolitical and trade-related challenges, the industry outlook remains positive, supported by sustained urbanisation and infrastructure development.

Indian Steel Industry

India continues to strengthen its position as one of the fastest-growing steel markets globally, supported by domestic consumption, infrastructure expansion, manufacturing growth, and policy support. The country remains the worlds second-largest crude steel producer and continues to target 300 MTPA steelmaking capacity under the National Steel Policy 2017.

Indias crude steel production stood at 168.4 MT in FY26, registering growth of 10.5% over approximately 152 MT produced in FY25. Finished steel exports surged by 35.9% to 6.6 MT during FY26, enabling India to regain its position as a net steel exporter, supported by competitiveness and presence across key global markets, including the Middle East, Europe, and Southeast Asia.

Indias steel consumption outlook remains robust, driven by large-scale investments in infrastructure, railways, roads, renewable energy, defence, affordable housing and industrial manufacturing. Government initiatives such as PM GatiShakti, Bharatmala, Make in India, Production Linked Incentive (PLI) Scheme for Specialty Steel and the National Infrastructure Pipeline continue to support long-term steel demand growth.

During FY26, the Ministry of Steel highlighted continued progress under the PLI Scheme for speciality steel and ongoing expansion plans at major steel plants to strengthen domestic steelmaking capabilities and improve self-reliance. Under the PLI scheme, 23,022 Crores investment supported specialty steel production and job creation.

Looking ahead, the Indian steel industry is expected to maintain its growth, with production projected to rise further and demand remaining steady. The countrys steelmaking capacity, estimated at around 220 MT in FY26, is targeted to reach 300 MT by 2030 and 500 MT by 2047, reinforcing Indias industrial growth ambitions. Additionally, India is pursuing decarbonisation of the steel sector to meet the net-zero emission intensity target by 2070. Despite challenges relating to energy costs and global market volatility, sustained policy support and domestic demand are expected to keep the industry on a growth trajectory.

(Source: Ministry of Steel Annual Report 2021-2022. Ministry of Steel Annual Report 2025-2026)

(Source: EJB)

Indian Induction Furnace Route for Steel Production

India has emerged as one of the largest users of the induction furnace route for steel production globally. Over the years, the share of the IF route in Indias crude steel production mix has increased significantly from nearly 29.3% in FY22 to around 38.2% currently in FY26, reflecting its growing importance in the domestic steel ecosystem. Crude steel production through the induction furnace route stood at 47.0 MT during 9M FY26, accounting for nearly 38% of total crude steel production.

Induction furnace-based steelmakers continued to drive capacity expansion in FY26, with IF capacity rising by 16% Y-o-Y to around 91 MT, reflecting construction-linked long steel production, supported by relatively lower capital requirements and strong regional demand.

The sector continues to benefit from relatively lower capital requirements, domestic steel demand, infrastructure development, urbanisation, and government-led manufacturing initiatives. Additionally, focus on scrap utilisation, green steel production, recycling, and energy-efficient manufacturing is expected to strengthen further the relevance of the induction furnace route in Indias steel ecosystem over the coming years. The growing relevance of sustainable steelmaking is evident from Indias draft National Steel Policy 2025, which targets a 25% reduction in steel sector emissions to 2 MT of carbon dioxide per tonne of finished steel by

2035-36 through scrap utilisation, cleaner technologies, and adoption of electric-route steelmaking.

(Source: Bigmint . Reuters. Ministry of Steel Annual Report 2025-2026) Global Silica Ramming Mass Overview

Silica ramming mass is a crucial refractory material used for lining induction furnaces owing to its high thermal stability, corrosion resistance and cost-effectiveness. It remains relevant for the production of high-quality steel and alloys and continues to witness growth alongside the expansion of the global steel and foundry industries. Increasing urbanisation, rising infrastructure projects and sustained growth in steel production are expected to support this growth trajectory. In addition, advancements in manufacturing technologies, automation and the overall economic strength of emerging regions are further contributing to industry expansion.

Asia continues to dominate the global silica ramming mass market, supported by its strong steel production base, followed by Europe, the Middle East, North America and Africa. With steelmakers increasing production capacities to meet the requirements of rising populations, large-scale infrastructure projects and rapid urbanisation, demand for silica ramming mass is expected to remain strong globally. The manufacturing landscape is also shifting towards greater precision and automation as producers adapt to stricter quality, consistency and environmental standards. Companies are increasingly leveraging automated production facilities to manufacture higher-grade ramming mass tailored for modern furnace parameters, thereby improving operational efficiency and product performance.

In India, demand for high-quality silica ramming mass is steadily increasing as the country strengthens its position among the worlds leading steel producers. Government-led initiatives such as PM GatiShakti, Bharatmala and accelerated infrastructure spending are expected to boost steel production and induction furnace capacity expansion, thereby driving demand for silica ramming mass. India also benefits from abundant quartzite reserves, ensuring the domestic availability of high-quality raw materials for ramming mass production.

Indias major steel-producing regions, including Odisha, Chhattisgarh, Jharkhand, Karnataka and West Bengal, continue to upgrade technologies and expand furnace capacities to improve output efficiency and minimise downtime. Despite challenges such as volatile raw material prices and elevated energy costs, medium and large manufacturers are steadily improving operational efficiencies and strengthening production capabilities. At the same time, increasing focus on sustainability and compliance is encouraging demand for higher-quality refractory materials and efficient production processes.

India is expected to retain its position as one of the largest exporters of silica ramming mass globally during 2025-26. Demand from key export markets such as Nepal, Saudi Arabia, Ghana, Turkey and the UAE remain resilient, supported by expanding steel production in these regions and Indias cost competitiveness, consistent product quality and abundant quartzite reserves. By 2030, Indias silica ramming mass exports are expected to increase by over 20%, supported by strong global demand, efficient logistics and growing acceptance of Indian refractory products.

Factors Driving Growth for Indian Steel and Ramming Mass Industries

During FY26, the Indian steel and ramming mass industry witnessed steady growth, led by multiple demand-side and structural drivers. Despite rising interest rates, the urban residential real estate industry remained resilient, shaped by multiple new projects launches and sustained affordability. The renewable energy sector gained significant investments, propelled by increasing power requirements and the accelerating shift towards green energy solutions. The Indian government strongly focussed on infrastructure development, as the pipeline of the National Highways Authority of India (NHAI) shows promising prospects for the coming years. Infrastructure Investment Trusts (InvITs) witnessed global investors interest, ensuring long-term investment in building infrastructure. Additionally, private capital expenditure gained a lift, owing to initiatives such as the National Infrastructure Pipeline (NIP), the Production Linked Incentive (PLI) and efforts to improve defence indigenisation.

The silica ramming mass industry is expanding, corresponding to the increase in steel production. Nearly 30 kg of silica ramming mass is needed for every tonne of steel produced. Government initiatives, including Aatmanirbhar Bharat and Make in India, are reinforcing domestic production and minimising dependence on steel imports.

India retains its position as the leading silica ramming mass exporter globally, strengthened by rising demand from international markets such as Uganda, Saudi Arabia and Kenya. Additionally, increased infrastructure development and accelerated urbanisation boost steel production, auguring well for silica ramming mass consumption.

Further, government initiatives such as the Gati-Shakti Master Plan, expanding metro and railway systems, and affordable housing policies are propelling steel demand. The expanding production in the engineering and automobile segments is boosting requirements for specialised alloys and high-grade steel. Additionally, the industry is gradually transitioning towards environmentally sustainable manufacturing, which encourages the adoption of energy-efficient technologies, including induction furnaces. Indias expanding role as a steel exporter solidifies domestic production amidst fluctuating local demand.

(Source: EJB)

Key Announcements from the Union Budget 2026-27 Roads

The Ministry of Road Transport and Highways (MoRTH) received a 3.2% increase in the Union Budget 2025-26, with an allocation of 3.10 Lakh Crore, up from 2.87 Lakh Crore the previous year. Of this, the National Highways Authority of India (NHAI) was allocated around 1.87 Lakh Crore for capital expenditure, about 6.86% increase from 1.75 Lakh Crore in FY26. Furthermore, the government aims to develop a national highway network spanning 2.1 Lakh kilometres by 2026, reflecting its ambitious transport sector targets.

Housing

The budgetary allocations for PMAY-G (Pradhan Mantri Awas Yojana-Grameen) increased from 15,000 Crores in 2016-17 to 54,916.70 Crores in 2026-27 (an increase of 266.1%). Additionally, the central government intends to expand the coverage and scale of PMAY to include shopkeepers, traders, and self-employed individuals.

Infrastructure

As of early 2026, the National Infrastructure Pipeline (NIP) is accelerating, with the Union Budget 2026-27 raising infrastructure outlay to 12.2 Lakh Crore. A new NIP 2.0, focusing on public-private partnerships (PPP), has identified 852 projects costing over 17 Trillion, with a heavy emphasis on highways and urban infrastructure. The inland waterways network has witnessed significant expansion, with over 30 National Waterways already operational as of 2025-26, while the government has further scaled up its vision to operationalise nearly 76 waterways by 2027, enhancing cost-efficient and sustainable cargo movement. Additionally, in the aviation sector, India has already expanded to 164 operational airports in 2025, with continued additions under regional connectivity schemes and greenfield projects, supporting the long-term target of 200+ airports in the coming years.

Capital Investment

Indias Union Budget FY27 emphasises public investment by raising the capital expenditure (capex) outlay to a record 12.2 Lakh Crore. This nearly 9% increase from the previous years estimate of 11.2 Lakh Crore is intended to sustain economic momentum and fulfil the governments Viksit Bharat vision for a developed India.

Automotive

The Indian automobile industry demonstrated strong growth in FY26, underscoring its position as the worlds third-largest. Domestic sales, production, and global exports largely drive the growth. The sector is expected to grow from US$ 137.06 Billion in 2025 to US$ 147.58 Billion in 2026 and is forecast to reach US$ 213.74 Billion by 2031 at 7.69% CAGR over 2026-2031. This buoyant demand can be attributed to population-led growth, rising household incomes, policy-backed electrification, demand for sustainable mobility and a strong manufacturing base. The passenger vehicle (PV) segment witnessed a surge in domestic sales in FY26. The implementation of GST 2.0 has improved household disposable income, enabling the affordability of Two-Wheelers.

Expanding Real Estate

Naredco-Knight Frank report mentioned Indias real estate is expected to flourish, reaching US$ 5.8 Trillion by 2047.

Urbanisation Driving Growth Opportunities

Indias urban infrastructure has seen substantial investment, with 30 Lakh Crore spent in the last decade and a projected 10 Lakh Crore more over the next four years. Around 70% of the urban infrastructure needed by 2047 is yet to be built, creating significant investment opportunities. India is expected to invest about US$ 840 Billion in infrastructure by 2036, which is around US$ 55 Billion per year (about 1.2% of GDP), and this is likely to drive strong steel demand.

Rapid Industrialisation

Industrialisation in India continued to gain momentum in 2025-26, providing strong support to the steel industry, driven by expansion in manufacturing, mining, and electricity, which are key steel-consuming sectors. Moreover, large-scale government initiatives, including the development of industrial corridors, production-linked incentive (PLI) schemes, and approval of over US$ 3.6 Billion for new industrial parks, are further accelerating industrial capacity and attracting investments for the steel industry.

Company Overview

With more than 16 years of specialisation, Raghav Productivity Enhancers Limited (RPEL), formerly named Raghav Ramming Mass Limited, has emerged as an industry leader in Indias silica ramming mass industry. Over the years, the organisation has reinforced its reputation as an organised manufacturer in this sector, the largest exporter and the only Indian supplier in a segment that is mostly fragmented and organised. RPEL has also been a pioneer in breaking geographical barriers, with its products reaching 27 states across India and 39 countries globally, reflecting its strong market presence and expanding international footprint.

RPEL has built its credibility by delivering consistently high-quality products to a vast range of renowned steel manufacturers and foundries, spanning domestic and international markets.

The primary business activities of RPEL are centred in Tonk, Rajasthan, with access to high-quality quartz mining areas. In 2025, the company increased its group capacity to 4,14,000 MTPA, which is expected to further expand to 5,34,000 MTPA by October 1, 2026. Additionally, RPEL has developed an indigenously engineered manufacturing process, for which it has been granted a first-of-its-kind patent by the Government of India. This highlights the Companys focus on innovation and technological advancement within the silica ramming mass industry. Among its other recognitions, Certificate of Recognition for being the worlds largest manufacturer of ramming mass by AIIFA, Asias Most Trusted Ramming Mass Brand and others.

Driven by a strong commitment to innovation and superior quality, RPEL constantly upgrades its manufacturing system and technology to improve productivity and offer high-performance products. The Company also offers customised product formulations based on customers plant parameters and operating conditions, supported by a dedicated team of technicians who conduct on-site trials to optimise furnace performance, lining life and energy efficiency. Reflecting its adherence to strict quality protocols, the organisation is certified by ISO 9001:2015 Quality Management System and Certificate of Compliance UK CERT Additionally, RPEL is a frontrunner in developing products in the Indian Ramming Mass industry, in which it is supported by a government-approved research and development centre at its plant.

With its strong focus on research and development, RPEL emerges as a global leader in the silica ramming mass industry. The company delivers products with unparalleled quality, owing to its entirely automated processing and VSI-based crushing technology. Apart from enabling steel, casting and foundry units to improve operational excellence and cost effectiveness, this strengthens RPELs market position against conventional local ramming mass.

Business Highlights 2025-2026

During FY26, Raghav Productivity Enhancers Limited continued to strengthen its operational and market position, achieving capacity utilisation of 87% during the fourth quarter, strong demand and healthy plant operations. The Company delivered a Return on Capital Employed (ROCE) of 28% and generated cash flow from operations of approximately 37 Crores during the year, supported by disciplined execution. Healthy customer additions through successful product trials further strengthened market penetration and demand across domestic and export markets.

Export performance during the year witnessed temporary disruptions due to the Iran conflict and related geopolitical uncertainties affecting logistics and supply chains. However, export operations normalised from April 2026, with customers absorbing elevated freight costs. Inventory levels increased towards the end of the year as a precautionary measure against potential supply chain disruptions. The Company also continued to leverage its technological capabilities through Indias only government-approved R&D facility in the silica ramming mass industry, enabling the development of customised solutions focussed on improving furnace lining life, productivity and energy efficiency for customers.

Financial Highlights

Analysis of consolidated profit and loss statement

Particulars	FY26	FY25	Variance
Revenues ( Crores)	257.07	199.65	28.76%
EBITDA ( Crores)	75.22	53.72	40.02%
EBITDA margin (%)	29.26%	26.91%	235 bps
Net Profit ( Lakhs)	54.80	36.97	48.22%
Net Profit Margin (%)	21.32%	18.52%	280 bps
Net Worth ( Crores)	244.52	193.70	26.23%
Capital Employed ( Crores)	249.93	200.78	24.48%
ROCE (%)	28%	24.20%	395 bps
Debt Equity Ratio (X)	0.02	0.04

Revenues

The Company experienced an 28.76% increase in revenue from operations, rising from 199.65 Crores in the prior fiscal to 257.07

Crores in FY26. Increase in revenue was driven by a 29% increase in volume and higher realisation.

Expenses

In FY26, the Company saw a rise in total expenses, which increased by 23.70% from 153.26 Crores in the previous fiscal year to 189.59 Crores. This increase was largely driven by an increase in raw material costs, which represent % of total revenues, down from 28.35%, thanks to economies of scale. On the other hand, employee expenses, which account for 40.66% of revenues, Additionally, other expenses increased by 17.04% as the company continue to scale.

Analysis of the Balance Sheet

Source of Funds

The Companys capital employed increased by 24.5%, rising from 200.78 Crores as of March 31, 2025, to 249.93 Crores as of March 31, 2026. Similarly, RPELs net worth grew by 26.24%, climbing from 193.70 Crores to 244.52 Crores during the same period.

Application of Funds

Throughout the fiscal year, the Companys gross fixed assets experienced a 11.92% increase, growing from 119.12 Crores as of March 31, 2025, to 132.56 Crores as of March 31,2026, primarily due to investments in plant and machinery. As a result, depreciation rose from 6.45 Crores in FY25 to 7.01Crores in FY26.

Working Capital Management

The Companys current assets surged by 24.87%, increasing from 169.43 Crores as of March 31, 2025, to 135.69 Crores as of March 31, 2026, driven by the expansion of its business operations. Debtors also saw a rise of 13.77%, increasing from 51.17 Crores in FY25 to 58.22 Crores in FY26. Additionally, inventories, which majorly included raw materials and work-in-progress, grew by 65.85%, rising from 34.64 Crores as of March 31, 2025, to 57.45 Crores as of March 31, 2026. Stockpiling in inventory was largely in the month of March, to tackle probable supply chain concerns due to the disruptions in the Middle East.

Key Risks	Description	Mitigation
Market Risk	The global economy is slowing down with rising trade uncertainties, adversely affecting RPELs export demand and market performance.	RPEL diversifies its market across 39+ countries in addition to India, using its geographical presence and reducing market risks. Its export sales volumes increased by 26% year-over-year, helping the company to cushion itself against fluctuating demand in the Indian market.
Raw Material Sourcing Risk	The risk of poor-quality raw materials procurement impacts product quality, escalates raw material costs, affects production schedules, disrupts customer confidence and damages business reputation.	RPEL procures raw materials, quartz stone of its own, only from the licensed mines. These resources adhere to stringent environmental and regulatory protocols, minimising supply interruptions, ensuring quality and decreasing compliance-related problems.
Currency Risk	Given that almost half of the RPELs revenue is gained from exports in FY26, fluctuating foreign exchange rates impact its profitability and margins.	RPEL constantly monitors currency changes and follows its hedging strategy prudently to curb the adverse volatility of the exchange rate on its financial activities.
Quality Risk	Failure to meet prescribed quality standards results in customer dissatisfaction, which can negatively impact repeat business.	RPEL strongly emphasises operational discipline and quality assurance. The ISO 2015 certification strengthens quality management and maintains internationally recognised standards.
Technological Risk	Rapid digitalisation and changing industry practices pose challenges if technologies are not integrated promptly, affecting RPELs efficiency.	RPEL constantly invests in current technology while upgrading to enhance product quality, expanding product portfolio and supporting long-term growth according to the industrial advancement.
Environmental Risk	Ramming Mass manufacturing has environmental considerations. Any breach in applicable environmental laws attracts penalties, impacting the organisations standing adversely.	RPEL implements sustainable manufacturing practices such as water conservation measures, recycling and reusing processes that minimise waste and emissions. Given that RPELs facility is recognised by the National Green Tribunal, highlighting its environmental responsibility.

HR and Industrial Relations

The company strongly focusses on the welfare of all its employees, treating everyone with dignity and respect. The personnel are provided with an exceptional working environment, equipped with advanced technology. RPEL strongly believes in building an inclusive culture where trust, open communications and collaboration are encouraged, ensuring constant engagement of the employees. With the view of supporting employee growth, the company invests in skill development and structured training programmes, enhancing capabilities throughout all levels. To prioritise health and safety, RPEL has an ongoing improvement plan to achieve a zero-incident workplace, underpinned by comprehensive multi-year strategy guidelines that execute clear protocols and meet safety goals within the manufacturing operations. By March 31, 2026, RPELs workforce consisted of 188 employees.

Internal Control Systems and Their Effectiveness

Aligning with the business complexity and size, RPEL establishes its vigorous internal control framework. The system integrates well-defined processes, policies and procedures, ensuring credible financial

reporting, optimising resources, safeguarding assets and complying with applicable regulations. Internal audits are conducted regularly to evaluate its operations, in which the Audit Committee reviews findings and suggestions. Following this, corrective measures are initiated wherever required. Further, the Audit Committee engages in continuous dialogue with statutory and internal auditors to ensure the internal controls remain effective.

Cautionary Statement

The statements made in the Management Discussion and Analysis describing the objectives, projections, estimates and expectations may be forward-looking statements within the meaning of applicable securities laws and regulations. Actual results could differ from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand, supply, and price conditions in the domestic & overseas markets in which the company operates, changes in Government regulations, tax laws & other statutes, and other incidental factors.