Ramkrishna Forgings Ltd Management Discussions

Global Economy

The global economy is projected to maintain a resilient growth trajectory of 3.3% in 2026 and 3.2% in 2027, following an estimated 3.3% in 2025. While the aggregate figures suggest stability, they mask "divergent forces" acting across different regions and sectors. Positive momentum driven by massive investments in technology and artificial intelligence (AI), particularly in North America and Asia, is currently counterbalancing headwinds from shifting trade policies and high public debt.

Global headline inflation is on a downward path, expected to fall from 4.1% in 2025 to 3.4% by 2027. Global inflation is expected to moderate steadily; however, the convergence to central bank target levels is likely to be more gradual in the United States than in other major economies. Risks remain tilted to the downside, centred on potential disappointments in AI-driven productivity, trade tension flare-ups, and fiscal vulnerabilities as global sovereign debt is projected to exceed 100% of GDP by the end of the decade.

Inflation Trends

Global Trajectory: Headline inflation is expected to decline from 4.1% (2025) to 3.8% (2026) and 3.4% (2027).

Regional Divergence: US core inflation is not expected to return to the 2% target until 2027, delayed by the pass-through of higher tariffs. Conversely, the euro area is projected to see headline inflation hover around 2% sooner.

Commodity Impact: While near-term energy prices are expected to soften, post-conflict supply disruptions, geopolitical realignments, and strategic stockpiling are likely to sustain structural tightness, limiting downside and contributing to elevated volatility over the medium term.

Central Themes and Economic Drivers

1. Technology and AI-Driven Investment

Surging investment in AI and related technologies serves as a primary tailwind, specifically in North America and Asia.

Concentration: Tech-related trade flows remain robust, with high-tech exports from Asian economies (excluding China) showing brisk expansion.

US Momentum: Technology investment added approximately 0.3% points to US GDP growth in the first three quarters of 2025.

2. Shifting Trade Policies and Tariffs

Trade tensions have abated since late 2025 but remain a source of significant uncertainty.

US Policy: While some recently implemented tariffs are offset by the removal of others on agricultural products, policy uncertainty remains much higher than in early 2025.

US-China Truce: A yearlong truce involving semiconductors and rare earth minerals has paused export controls and reduced bilateral tariffs until November 2026, providing a temporary boost to Chinas 2026 growth forecast (revised up to 4.5%).

Regulatory Uncertainty: Ongoing legal and policy scrutiny in the United States, continues to add complexity and unpredictability to the trade outlook.

3. Fiscal and Monetary Policy Stance

Stimulus: Near-term fiscal policy is expected to be stimulative in Germany, Japan, and the United States. In the US, the "One Big Beautiful Bill Act of 2025" provides tax incentives for corporate investment.

Monetary Easing: Rates are expected to decline in the UK and US. However, the euro area policy rate is expected to remain unchanged, while Japan is projected to raise its rate gradually.

Sources IMF: https://www.imf.org/en/publications/weo/issues/2026/01/19/world-economic-outlook-update-january-2026 https://www.imf.org/-/media/files/publications/weo/2026/january/ english/text.pdf

Indian Economy

The Indian economy demonstrated remarkable resilience and momentum during FY2025–26, sustaining a strong growth trajectory among major economies despite persistent geopolitical tensions, trade disruptions, and tariff uncertainties. According to the First Advance Estimates and the Economic Survey 2025-26, real GDP growth stood at 7.4%, with Gross Value Added (GVA) growth at 7.3%. This performance was driven by robust domestic demand, supported by healthy balance sheets across households, corporates, and banks, alongside sustained public investment and recovering private capex.

Growth remained broad-based, with private final consumption expenditure (PFCE) contributing significantly (share rising to ~61.5% of GDP, the highest since FY2011-12) and growing at around 7%. Gross Fixed Capital Formation (investment) also strengthened, reflecting improved investment intensity (~30% of GDP). The services sector continued to anchor the economy, while industry and manufacturing showed steady recovery amid policy reforms

Key Macroeconomic Indicators

Headline CPI inflation averaged a historic low of 1.7% during April–December 2025 — the lowest since the start of the current CPI series. This was driven by subdued food inflation due to favourable monsoons and higher agricultural output. Core inflation remained anchored, providing monetary policy space and supporting real purchasing power for consumers and input cost stability for manufacturers.

The Centres fiscal deficit was contained at 4.8% of GDP in FY2025 (provisional actuals, against a budgeted 4.9%), with a targeted glide path to 4.4% in FY2026. Revenue receipts strengthened to ~9.1–9.2% of GDP, aided by buoyant direct taxes and GST collections. Effective capital expenditure remained robust at ~4% of GDP, underscoring the governments focus on infrastructure and asset creation. Sovereign credit rating upgrades by agencies including S&P, DBRS, and R&I in 2025 reflected improved fiscal credibility.

The Current Account Deficit (CAD) moderated to 0.8% of GDP in H1 FY2026 (from 1.3% in H1 FY2025). Strong services exports (including IT, GCCs, and professional services) and remittances helped offset the merchandise trade deficit. Foreign exchange reserves stood at USD 701.4 billion (as of mid-January 2026), providing over 11 months of import cover. Despite global headwinds such as elevated US tariffs, India attracted healthy FDI inflows, particularly in digital, semiconductors, and advanced manufacturing.

Ongoing geopolitical conflicts and recent escalations in the Middle East regions present emerging risks to the macroeconomic outlook. While Indias direct exposure remains limited, potential spillovers through higher global commodity price volatility, supply chain disruptions, and trade route uncertainties could exert pressure on inflation and external balances. However, strong foreign exchange reserves, a diversified import basket, and robust domestic demand may position the economy well to absorb such shocks, reinforcing its macroeconomic stability.

Medium-Term Outlook and Structural Reforms

The Economic Survey revised Indias potential GDP growth upward to ~7%, with projections for FY2027 in the range of 6.8–7.2%. This optimism stems from sustained capital accumulation (infrastructure and logistics), labour reforms (implementation of Labour Codes), skilling initiatives, and gains in Total Factor Productivity through digital public infrastructure and regulatory simplification. Key policy measures during the year — including GST rationalization, opening of sectors like nuclear power and insurance to greater private / FDI participation, and easing of environmental norms for industries — are expected to enhance competitiveness and unlock manufacturing potential.

Indias economy demonstrated a "Goldilocks" moment of high growth with low inflation, positioning it as an oasis of stability amid global volatility. Domestic demand resilience, particularly in consumption and investment, cushioned external shocks, while ongoing reforms in logistics, labour, and taxation are paving the way for higher value-addition and integration into reconfigured global value chains.

PE- Provisional Estrimates ; FAE- First Advance estimates https://www.pib.gov.in/PressReleasePage. aspx?PRID=2220800&reg=3&lang=2 https://www.indiabudget.gov.in/economicsurvey/doc/Infographics%20 English.pdf https://prsindia.org/files/policy/policy_committeefireports/Economic_ Survey_2025-26.pdf https://treelife.in/reports/india-economic-survey-2025-26/ https://www.pib.gov.in/economicsurvey/2026/en/index. aspx?reg=3&lang=2 https://www.ibef.org/economy/economic-survey-2025-26

INDIAN FORGING SECTOR

The Indian forging industry continued its steady growth trajectory in FY2025-26, benefiting from robust domestic demand in automotive, railways, defence, and infrastructure sectors, alongside policy support under Make in India, PLI schemes, and infrastructure capex. The sector, a critical part of the auto component and capital goods ecosystem, witnessed moderate-to-strong volume growth amid healthy capacity utilization, technological upgrades, and a gradual shift towards value-added, precision-forged, and machined components.

According to Grand View Research, the India metal forging market generated revenue of USD 11,346.9 million in 2025 and is expected to grow at a CAGR of 8.8% from 2026 to 2033, reaching USD 22,515.7 million by 2033. India accounted for 13.2% of the global metal forging market revenue in 2025. Carbon steel remained the largest revenue-generating raw material segment with a 43.34% share in 2025, while aluminium emerged as the fastest-growing segment during the forecast period, driven by lightweighting needs in EVs and aerospace.

Key Growth Drivers

Automotive Sector: The automotive industry remained the largest consumer of forgings. Domestic vehicle production and sales showed resilience, supported by strong rural demand, infrastructure-led commercial vehicle recovery, and healthy passenger vehicle growth. Exports of vehicles and components performed well, with double-digit increases in several segments. The transition towards electric vehicles (EVs) opened new avenues for forged components in motor shafts, drivetrains, and structural parts, even as internal combustion engine (ICE) platforms sustained volume. Uniform GST rationalization on auto parts further aided competitiveness.

Railways and Infrastructure: Sustained government investment in railway modernization, high-speed corridors, dedicated freight corridors, and metro projects drove demand for forged components such as wheels, axles, couplers, gears, and undercarriage parts. The increasing focus on domestic production of forged wheels, supported by indigenization initiatives and localization mandates, further strengthened opportunities for the Company and its peers.

Defence and Aerospace: The sector emerged as a high-growth vertical with increasing order books for artillery systems, armoured vehicles, and aerospace components. Policy thrust on self-reliance (Atmanirbhar Bharat) and offset obligations boosted domestic forging uptake. Several players, including integrated manufacturers, reported strong pipelines in this segment.

Industrial and Other Segments: Demand from agriculture equipment, construction & mining machinery, power, and oil & gas remained supportive, aided by overall industrial recovery and capex momentum.

Operational Trends and Challenges

Capacity utilization across organized forging units improved during the year, reflecting better demand visibility and operational efficiencies through automation and Industry 4.0% adoption. The industry witnessed continued consolidation, technology upgrades (including precision machining and ring rolling), and focus on sustainability—such as energy-efficient processes and use of recycled materials—to meet global OEM standards. The Economic Survey 2025-26 highlighted manufacturings resilience and structural transformation, with medium- and high-technology activities gaining share. Initiatives like PLI for automobiles & auto components, PM E-DRIVE, and logistics improvements are expected to enhance the forging ecosystems integration into higher value-added segments.

Outlook for FY 2026-27 and Beyond

The forging industry is well-positioned for sustained growth, supported by Indias infrastructure push, defence indigenization, EV adoption roadmap, and rising global outsourcing opportunities. With the metal forging market projected to expand at 8.8% CAGR from 2026 onwards, potential GDP growth in the 6.8–7.2% range, combined with healthy private investment and consumption, should translate into steady demand for forged components.

Key opportunities include:

Higher content per vehicle through integrated forging + machining solutions Non-ferrous and lightweight forgings (particularly aluminium) for EVs and aerospace Export expansion to North America, Europe, and emerging markets Adoption of advanced technologies for productivity and quality

https://www.grandviewresearch.com/horizon/outlook/metal-forging-market/india https://www.persistencemarketresearch.com/market-research/india-metal-forging-market.asp https://www.researchandmarkets.com/reports/5850500/metal-forging-market-report?srsltid=AfmBOorUZByHwBKvppl6F3ksZg_ pUbN9Fvdzs2M7rUwkjsRc6geiErHg https://www.pib.gov.in/PressReleasePage. aspx?PRID=2219990&reg=3&lang=2 https://auto.economictimes.indiatimes.com/news/industry/economic-survey-2026-reveals-key-drivers-of-indias-automobile-industry-growth-exports-ev-initiatives-and-gst-reforms/127772673

OUR KEY MARKETS

The US Truck and Bus Sector

The US Truck and Bus sector in 2025 navigated a challenging yet transitional landscape, characterised by subdued overall demand in heavy-duty segments amid economic pressures, while showing pockets of resilience in electrification, fleet modernisation, and late-year order surges.

Key Trends

In 2025, the U.S. truck and bus sector operated in a stabilising freight environment following two years of cyclical correction. According to the American Trucking Associations (ATA), freight tonnage remained subdued through much of 2025 before showing signs of recovery towards the latter part of the year, supported by improving inventory cycles, steady consumer demand, and gradual normalisation in supply chains.

Fleet replacement continued to serve as a core structural driver of demand. Many operators deferred capital expenditure during the freight downturn, resulting in ageing vehicle fleets. As maintenance costs rose and fuel efficiency considerations became more critical, carriers resumed selective investments in newer, more technologically advanced vehicles to optimise operating costs and uptime.

Further, the US truck and bus sector in 2025 was defined by accelerated capacity tightening, as weak carrier profitability, elevated operating costs, and financial pressures on smaller operators led to significant contraction in active fleet capacity. This dynamic led to sub-replacement sales levels for much of the year, particularly in Class 8 trucks, while disciplined production by OEMs helped prevent further inventory buildup and laid the groundwork for a more balanced market entering 2026. Soft freight demand, episodic volatility, and early-year overcapacity contributed to subdued activity, though improving spot rates and broader economic resilience provided late-year momentum. Electrification and zero-emission adoption progressed unevenly amid regulatory pushes and sustainability commitments. Zero-emission medium- and heavy-duty vehicles (MHDVs) saw mixed results, with buses maintaining relatively higher market shares (around 4%-5% in some quarters) and showing signs of stabilisation despite absolute declines, while heavy-duty truck adoption contracted notably due to cost, infrastructure, and demand challenges. Broader efforts, including EPA standards and incentives, continued to drive interest in battery-electric and alternative-fuel technologies, though overall ZEV registrations remained low, reflecting a nascent but evolving shift toward greener fleets.

Regulatory and policy influences played a pivotal role, with growing clarity on upcoming 2027 EPA low-NOx rules, tariff adjustments, and emissions timelines influencing fleet decisions and spurring activity late in the year, even as uncertainties around trade policies and funding models persisted.

Higher tariffs in the U.S. truck market have had a mixed impact, primarily increasing input costs for OEMs and suppliers, particularly for steel, aluminium, and imported components. This has put pressure on margins and, in some cases, led to price increases, affecting fleet purchasing decisions and delaying order cycles during much of the year.

Performance in 2025

The sector experienced a down year in heavy-duty metrics, with Class 8 retail sales declining approximately 13-14% year-over-year to around 2,08,000-2,10,000 units (down from about 2,40,000 in 2024). This reflected extended weak freight demand, high costs, tariff-related uncertainties, and deferred purchases, keeping sales below replacement levels for most of the period. Medium- and heavy-duty registrations contracted modestly overall, while zero-emission segments showed fluctuations, with declines in heavy-duty trucks and some stabilisation in buses. The year represented a "bottoming" phase, characterised by structural shifts and capacity contraction. A significant bright spot emerged late in 2025 providing a strong close and indicating an inflection point off the cycle low, though not enough to offset full-year declines.

Prospects over the medium term

The U.S. commercial market size is estimated USD 233.75 billion in 2026 and is predicted to increase to approximately USD 364.99 billion by 2034, expanding at a CAGR of 6.80% from 2026 to 2034. The U.S. commercial vehicle market is expanding globally through exports, strategic partnerships, and joint ventures. Manufacturers are targeting emerging markets, enhancing technology transfer, and leveraging brand reputation to increase international sales of trucks, vans, and fleet solutions.

Reasons for the Growth of Class 8 Trucks towards the close of 2025

Prebuy Ahead of Regulations: Carriers accelerated purchases in late 2025 to avoid higher costs and new technologies mandated by the 2027 EPA Clean Truck low-NOx rules, as they gained clarity on emissions standards.

Improved Policy Visibility: Clarifications on tariffs (e.g., steel/aluminium impacts) and regulatory timelines reduced uncertainty, encouraging deferred replacements.

Ageing Fleets and Replacement Demand: Mounting fleet age, combined with financial pressures that are forcing modernisation, has driven deferred purchases into action, particularly in on-highway segments.

Strengthening Economic and Freight Signals: Firmer economic foundations, absorption of excess capacity, and improved spot freight rates late in the year supported optimism and order rebounds (

Structural Capacity Reset: Sub-replacement sales throughout much of 2025 created pent-up demand, contributing to late surges as the market transitioned toward rebalancing.

This performance underscores a sector in reset mode, with 2025 highlighting challenges but also laying groundwork for stabilisation and modest recovery in 2026, driven by regulatory clarity, fleet needs, and improving fundamentals

Sources: https://www.precedenceresearch.com/us-commercial-vehicles-market https://www.actresearch.net/resources/blog/trucking-industry-forecast-for-2026 https://www.trucking.org/news-insights/ata-us-freight-transportation-forecast-2035 https://www.spglobal.com/automotive-insights/en/blogs/2026/02/ commercial-vehicle-market-outlook-sees-steady-gains https://www.truckinginfo.com/news/ata-truck-tonnage-posts-modest-december-gain

Commercial Vehicle Space - European Market

The European commercial vehicles market in 2025 was characterised by a notable slowdown in registrations across key segments, driven by sluggish economic growth, political uncertainties, and a normalisation following post-pandemic recovery peaks.

Key Trends

Vans and trucks saw significant declines, with new EU van registrations falling 8.8% and truck registrations dropping 6.2%, reflecting weak freight demand, high operating costs, and deferred fleet investments in major markets such as France, Germany, and Italy. Conversely, buses showed resilience with a 7.5% increase, bolstered by public transit modernisation and urban mobility initiatives. Overall, the market contracted, with Western Europes heavy commercial vehicle segment declining by 4.2% to around 290,000 units, underscoring broader regional challenges, including stagnant manufacturing output and elevated tolls in key transit countries such as Germany.

Electrification emerged as a pivotal trend, advancing unevenly amid stringent EU emissions regulations and the Green Deals incentives. Battery-electric vehicles (BEVs) have gained traction, particularly in buses and light commercial vehicles (LCVs. However, adoption remained low overall, with BEVs capturing modest shares due to infrastructure gaps, high upfront costs, and range limitations for long-haul applications. Diesel retained dominance, accounting for over 80% of van registrations despite a 12.8% decline, while hybrids and alternative fuels saw incremental uptake in urban fleets.

Technological advancements and fleet management innovations played a crucial role in improving operational efficiency and advancing sustainability goals. The integration of AI, telematics, and predictive maintenance systems expanded, with the fleet management installed base reaching 18.1 million units by year-end and projected to grow at an 11% CAGR to 30.5 million by 2029. This trend supported cost reductions amid rising fuel and labour expenses, while cybersecurity enhancements countered increasing digital threats. Demand conditions remained uneven, with U.S. tariff increases raising vehicle and component costs—delaying fleet replacement cycles—while weaker economic conditions in Europe weighed on freight activity and fleet expansion.

Economic and freight pressures persisted as dominant challenges, with soft transport volumes, inflation, and supply chain disruptions contributing to subdued market activity. Road transport growth lagged at 0.5%, hampered by manufacturing contractions in Germany and energy-intensive sectors, though e-commerce and last-mile logistics provided some uplift for LCVs.

1. Vans (Light Commercial Vehicles up to 3.5t)

The van segment, often seen as a bellwether for small business, health, and e-commerce, contracted in 2025 as economic cooling in the "Big Three" (Germany, France, and Italy) outweighed growth in Iberia.

Market Performance

Total Registrations: The EU market saw an 8.8% decline, totalling approximately 1.17 million units for the full year.

Regional Variance: * Decliners: France (-5.6%), Germany (-5.4%), and Italy (-5.0%) saw steady retreats.

Growth Leaders: Spain defied the trend with a robust 11.7% increase in registrations.

Market Value: Estimated at $60.45 billion in 2025, with a projected CAGR of ~3.1% through 2031 as e-commerce "last-mile" delivery needs remain a structural floor for demand.

Fuel Type Trends

Diesel Dominance: Despite a 12.8% volume decline, Diesel remained the preferred choice, with an 80.7% market share (down from 84.4% in 2024). Electric Surge: Battery Electric Vans (BEVs) gained significant momentum, capturing an 11.2% market share, nearly double the 6.1% share of the previous year.

Hybrids & Petrol: Hybrid registrations grew by 21.4% (reaching a 2.7% share), while Petrol registrations plummeted by 31.9%, now holding just 4.4% of the market.

2. Trucks (Medium and Heavy Duty over 3.5t)

The truck market was characterised by a "wait-and-see" approach from large fleet operators, coupled with a disciplined production strategy from OEMs to manage inventory.

Market Performance Numbers

Total Registrations: New EU truck registrations fell by 6.2% to 307,460 units.

Segment Breakdown: * Heavy Trucks (>16t): Declined by 5.4%, though this segment still accounts for roughly 60% of the total truck market. Medium Trucks (3.5t–16t): Faced a sharper decline of 9.9%.

Competitive Landscape: Volvo Trucks maintained its leadership in the heavy-duty segment with a 19.0% market share, driven by the success of its aerodynamic FH Aero models.

Fuel Type Trends

Diesel: Continues to be the industry workhorse, accounting for 93.2% of new registrations. However, total diesel volumes fell by 8% as carriers explored alternative powertrains.

Electric Transition: Electrically-chargeable trucks increased their market share to 4.2% (up from 2.3% in 2024).

Key Adoption Hubs: The Netherlands (+205%), Germany (+39.6%), and France (+30.5%) collectively accounted for two-thirds of all electric truck registrations in the EU.

3. Buses (Medium and Heavy over 3.5t)

Buses were the sole growth engine in the European commercial vehicle market in 2025, benefiting from public-sector investment and aggressive municipal decarbonisation targets.

Market Performance

Total Registrations: The segment grew by 7.5%, reaching 38,238 units.

Regional Highlights: * Germany led the volume growth with a massive 28% increase.

? Poland followed with a 16.6% increase.

? Italy (-15.9%) and Spain (-4%) struggled due to the timing of public tender cycles.

Fuel Type Trends

The Electric Inflection Point: For the first time, nearly 1 in 4 new buses (23.8%) were electrically chargeable. In the specific city bus sub-segment, zero-emission models (BEV and Hydrogen) accounted for nearly 60% of all new sales.

Diesel Stability: Diesel bus registrations grew by 5.7% in absolute terms, while their market share dipped slightly to 62.1%.

Hybrid Decline: Hybrid-electric buses saw a sharp decline of 24.9%, falling to a 7% market share as municipalities skipped hybrids to move directly to full electrification.

New EU Commercial Registration

Sources: https://www.acea.auto/cv-registrations/new-commercial-vehicle-registrations-vans-8-8-trucks-6-2-buses-7-5-in-2025/ https://www.volvotrucks.com/en-en/news-stories/press-releases/2026/jan/volvo-leads-the-market-for-heavy-trucks-in-europe-.html https://chariot-electricbus.com/europes-electric-bus-market-soars-in-2025/ https://climate.ec.europa.eu/eu-action/transport-decarbonisation/road-transport/cars-and-vans_en https://www.marketscreener.com/news/eu-registrations-of-heavy-trucks-fell-by-5-4-percent-in-2025-acea-ce7e5bdeda81f123

DOMESTIC COMMERCIAL VEHICLE SECTOR

Overview

Indias domestic commercial vehicle (CV) sector remains the backbone of the nations logistics, infrastructure, and economic activity. It encompasses Light Commercial Vehicles (LCVs, including goods and passenger carriers up to ~7.5T GVW), Medium & Heavy Commercial Vehicles (M&HCVs – primarily trucks and tippers), buses, and specialised applications. The sector directly reflects freight demand, industrial output, construction/mining activity, e-commerce growth, and rural/urban connectivity.

Key structural features include:

Dominance of a few OEMs: Tata Motors, Mahindra & Mahindra, Ashok Leyland, and VE Commercial Vehicles (Eicher), with smaller players in niches.

Fragmented fleet ownership: A high proportion of owner-operators and small fleets, making the sector highly sensitive to fuel prices, interest rates, freight rates, and policy interventions.

Contribution to economy: Supports ~5-6% of Indias GDP indirectly through logistics; moves >70% of freight tonnage.

Regulatory backbone: BS-VI emission norms (fully implemented), FASTag/electronic tolling, and the Voluntary Vehicle Fleet Modernisation Programme (scrappage policy).

The industry has matured from cyclical, infrastructure-led booms to a more structural growth story, with LCVs driving last-mile and e-commerce volumes while M&HCVs cater to long-haul and bulk movement. Annual volumes have crossed the 1-million retail mark for the first time in FY 2025-26, signalling a shift to a higher base.

Performance in 2025-26 (FY26)

SIAM wholesale data (April 2025–March 2026) shows robust growth.

Total Commercial Vehicles:

• Production: 1,034,947 (FY25) g 1,170,150 (FY26), +13.06% YoY

• Domestic Sales: 958,679 (FY25) g 1,079,871 (FY26), +12.64% YoY

• Exports: 80,751 g 94,793, +17.39% YoY

M&HCVs:

• Production: 394,821 g 458,506 (+16.13%)

• Domestic Sales: 374,798 g 422,998 (+12.86%)

LCVs:

• Production: 640,126 g 711,644 (+11.17%)

• Domestic Sales: 583,881 g 656,873 (+12.50%) This aligns closely with retail trends. FY 2025-26 delivered the strongest performance in recent memory for the CV sector, with retail sales crossing the 10-lakh milestone at ~10.8 lakh units, confirming a broad-based recovery across sub-segments.

Key highlights

Record quarterly momentum in Q4 (Jan–Mar 2026) sustained the strong performance, with March 2026 being one of the strongest months.

Segment drivers: Strongest growth in MCV/HCV sub-segments due to infrastructure push (roads, ports, mining) and sustained freight demand. LCVs benefited from e-commerce, last-mile delivery, and rural recovery. Buses saw steady traction from state transport and school/staff needs.

Retail outpaced wholesale in the latter half, reflecting dealer destocking and genuine end-user demand post-GST reforms. Rural markets grew faster than urban in several months.

Contextual factors: Excellent monsoon/rabi season, GST 2.0 rate rationalisation, and elevated infrastructure capex. The sector comfortably surpassed pre-pandemic peaks.

Overall, FY26 was a good year, validating the sectors resilience and policy-led acceleration. Growth was not just volume-led but quality-led, with improving realisations and mix towards higher-GVW, more efficient vehicles.

Outlook

Rating agencies maintain a stable to moderately positive outlook for the domestic CV sector. According to ICRA, overall CV volumes are expected to grow in the mid-single-digit range (~4–6%) in FY2026–27, following the high base of FY26. Growth is likely to be led by the M&HCV segment, supported by sustained infrastructure spending, mining and construction activity, replacement demand, and fleet profitability. Similarly India Ratings & Research (Ind-Ra) expects domestic CV sales growth of 5–8% in FY27, supported by strong freight movement, infrastructure-led activity and healthy fleet utilisation.

However, the pace of expansion may moderate due to the high base effect, potential volatility in freight rates, and input cost pressures. LCV growth is expected to remain steady, driven by e-commerce and last-mile delivery, albeit at a more tempered pace. https://www.icra.in/CommonService/ OpenMediaS3?Key=065dbf83-be8d-4953-9ed0-198c28cce0a4 https://fada.in/images/press-release/169d329fc83770FADA%20 releases%20FY%202026%20and%20March%202026%20 Vehicle%20Retail%20Data.pdf

Key Trends Between 2026-30

The 2026-30 period is expected to feature moderate, structural growth at a 5-8% CAGR in volumes (ICRA projects 7-9% for FY27, followed by 4-6% normalisation, with a similar trajectory thereafter). The era of hyper-cyclical swings is giving way to steady expansion underpinned by policy continuity and economic fundamentals.

Major trends include:

1. Powertrain transition and sustainability: Electrification will accelerate, especially in LCVs (e-LCV penetration rising meaningfully into the double digits by 2030) and intra-city buses. CNG/LNG adoption will remain strong in long-haul due to cost economics. CV EV share (currently ~1.8%) is poised to expand as battery costs decline, charging infra improves, and

FAME-style incentives evolve. BS-VII norms (expected later in the decade) will further push cleaner tech.

2. Infrastructure and logistics modernisation: Continued thrust under Gati Shakti, Bharatmala, and dedicated freight corridors will favour higher payload, multi-axle trucks and tractor-trailers. E-commerce and organised retail will sustain LCV demand for last-mile efficiency. Hub-and-spoke models and fleet aggregation will reduce reliance on small owner-operators.

3. Productivity and technology integration: Shift towards connected vehicles, telematics, driver-assist features, and higher efficiency engines. OEMs will focus on reducing the total cost of ownership (TCO) through improved fuel economy, lower maintenance costs, and uptime guarantees. Automation in specialised applications (mining, ports) will emerge.

4. Segmental shifts: LCVs to retain volume leadership (~55-60% share); M&HCV trucks to grow faster on the infra/capex cycle. The bus segment (intra-city and inter-city) is to benefit from urbanisation and state fleet renewal.

5. Regional and rural-urban balance: Western and Northern zones to lead, but Southern and Eastern states to catch up with industrial corridors. Rural demand (tied to agri-logistics) will remain a stabiliser.

Risks include funding costs, fuel price volatility, and global commodity cycles, but the base case remains positive with GDP growth supporting 6-7% annual freight volume increase.

Opportunities Arising from Scrappage

The Vehicle Scrappage Policy (Voluntary Vehicle Fleet Modernisation Programme) is entering a high-impact phase and represents one of the strongest structural tailwinds for new CV sales in the 2026-30 window. Commercial vehicles older than 15 years must undergo mandatory automated fitness testing at Registered Vehicle Scrapping Facilities (RVSFs); failure to do so results in de-registration and mandatory scrapping. Scale of opportunity: An estimated 4.5+ million medium/ heavy CVs (plus millions of older LCVs) are eligible. Actual scrappage has been modest so far (~3.5 lakh total vehicles by mid-2025), but momentum is building with higher rebates, OEM-driven campaigns, and enforcement in pollution hotspots. Annual scrappage targets aim for >5 lakh vehicles by 2026-27.

Direct benefits to new CV demand:

Replacement surge: One old BS-IV truck emits as much as 14 new BS-VI units do – scrappage delivers instant emission reductions while creating 1:1 (or better) new-vehicle demand.

Fleet economics: Operators gain from lower operating costs (fuel, maintenance, downtime) and higher payload/productivity of modern vehicles.

Segmental boost: Strongest in M&HCV goods carriers and buses; also supports LCV renewal in urban areas. Multiplier effects: accelerate OEM order books, improve capacity utilisation, and support financing penetration. States offering aggressive CoD rebates (e.g., Maharashtra, Gujarat) are already seeing faster uptake.

Scrappage-led replacement cycles have historically delivered 2-3 year volume uplifts of 10-15% above trend. Combined with GST 2.0 and infra spend, this policy has the potential to make FY27-FY29 one of the strongest periods for CV OEMs and the broader ecosystem, while delivering cleaner air and more efficient logistics.

The Voluntary Vehicle Fleet Modernisation Programme is a major tailwind, with millions of old CVs eligible for replacement, expected to drive incremental demand in FY27–FY29, especially in M&HCV goods carriers and buses. The Indian CV sector has transitioned from a cyclical play to a policy-supported growth engine. FY26s record performance sets a higher base; the 2026-30 horizon offers steady volume expansion with electrification and productivity gains as key differentiators. Scrappage is the "silent accelerator" – timely execution by states and OEMs will unlock significant incremental demand and position the industry for sustainable, high-quality growth.

INDIAN RAILWAYS

Indian Railways continued its strong momentum in FY 2025-26, achieving record highs in both passenger and freight segments while advancing safety, modernisation, and infrastructure development. As the backbone of Indias logistics and passenger mobility, the sector supported economic growth, enhanced connectivity, and helped lower overall logistics costs through efficient bulk movement and premium services.

Operational Performance

• Passenger Segment: Indian Railways carried a record 741 crore passengers in FY 2025-26, marking a 3.54% year-on-year increase from 716 crore in FY 2024-25. Passenger revenue rose to approximately _80,000 crore, reflecting a 5.96% growth over _75,500 crore in the previous year. This outperformance in revenue versus volume growth was driven by higher ridership on premium services and improved monetisation.

• Freight Segment: Freight loading reached a historic high of 1,670 million tonnes (MT), registering a 3.25% increase over 1,617 MT in FY 2024-25. The number of wagons handled grew by 4.56% to 2.92 crore (29,186,475 wagons). Freight earnings stood at approximately _1,77,754 crore, up 1.44% from the previous year. Growth was driven by key commodities, including fertilisers (13.49% increase), pig iron & finished steel (13.11%), iron ore (6.74%), and cement (4.74%). Iron ore remained the largest revenue contributor among major commodities.

Safety and Modernisation

The indigenous Kavach Automatic Train Protection system was commissioned over more than 3,100 route km during the year, with work progressing on an additional 24,400 km. Production under the ‘Make in India initiative included significant numbers of locomotives and LHB coaches. The network expanded its premium services by introducing and scaling Vande Bharat (including the new Sleeper variant launched in January 2026) and Amrit Bharat trains, offering faster, safer, and more comfortable travel options to passengers. Electrification of the broad gauge network reached 99.6% as of March 2026.

Infrastructure and Digital Initiatives

• Gati Shakti Cargo Terminals and other multimodal logistics facilities were commissioned to boost efficiency.

• Station redevelopment progressed under the Amrit Bharat Station Scheme, with multiple stations upgraded.

• Key connectivity projects, including extensions in the Northeast and challenging terrain projects in Jammu & Kashmir, strengthened regional integration.

• Digital initiatives such as the RailOne App and measures to curb unauthorised bookings enhanced user experience and transparency.

Capital Expenditure and Government Support

The Union Budget 2025-26 allocated a Gross Budgetary Support (GBS) of _2,52,200 crore for capital expenditure.

By the end of December 2025 (first nine months), utilisation reached 80.54% (_2,03,138 crore), with particularly strong spending on safety (84% utilisation), capacity augmentation, infrastructure modernisation, and passenger amenities. This efficient execution underscores the continued government focus on railways as a key enabler of economic growth and employment generation.

Forged Wheels – A Critical Component

Forged wheels and wheelsets are among the most safety-critical and high-value components in railway rolling stock. They are essential for locomotives, coaches, and wagons, particularly those operating at higher speeds and carrying heavier axle loads. With the expansion of high-speed trains such as Vande Bharat, increasing axle loads in freight operations, and a sharp rise in wagon production, demand for high-quality forged wheels in India has accelerated significantly.

A critical component within this ecosystem, forged wheels have also emerged as a strategic focus area amid rising demand and supply-side constraints. Indias requirements—currently estimated at approximately 2,00,000 wheels annually—have outpaced domestic manufacturing capacity, resulting in a structural supply gap.

Demand, Procurement and Supply Dynamics

Procurement of forged wheels in India is undergoing a structural transformation. Historically, the country relied heavily on imports, with nearly 60–70% of demand met through overseas suppliers, primarily China. Ukraine and Russia were also key global sources; however, ongoing geopolitical disruptions have significantly constrained supply from these regions, tightening global availability and increasing dependence on Chinese imports. This has heightened concerns around supply concentration, pricing volatility, and long-term supply security.

All forged wheels are subject to stringent certification by the Research Designs and Standards Organisation (RDSO), ensuring compliance with high safety and performance standards, particularly for high-speed operations.

Capacity Expansion and Atmanirbhar Push

To reduce import dependence, Indian Railways has been actively promoting domestic manufacturing under the ‘Atmanirbhar Bharat initiative. This includes encouraging privatesectorparticipationthroughlong-termprocurement contracts and facilitating the establishment of large-scale, technology-aligned forged wheel manufacturing facilities. Over the medium term, this capacity build-up is expected to:

• Reduce reliance on imports and mitigate geopolitical supply risks

• Improve supply chain resilience and cost stability

• Support the expanding railway capex cycle, including high-speed rail and freight modernisation https://www.thehansindia.com/news/national/mcf-achieves-record-highest-coach-production-in-fy-202526-1062614 https://www.thehindu.com/news/national/karnataka/rail-wheel-factory-in-yelahanka-exceeds-production-targets-set-by-railway-board-across-allcategories/article70817042.ece https://www.pib.gov.in/PressReleseDetailm. aspx?PRID=2247768&reg=3&lang=2 https://indianexpress.com/article/business/railways-set-cargo-loading-record-in-fy26-on-track-to-achieve-3000-mt-milestone-by-2030-10614219/ https://www.pib.gov.in/PressNoteDetails. aspx?id=158187&NoteId=158187&ModuleId=3&reg=3&lang=2 https://www.pib.gov.in/PressReleasePage. aspx?PRID=2211554&reg=3&lang=2 https://cr.indianrailways.gov.in/view_detail. jsp?lang=0&dcd=10536&id=0,4,268

ABOUT THE COMPANY

Ramkrishna Forgings Limited, headquartered in Kolkata has operations in Jharkhand ,Haryana and Pune , stands as a prominent leader in Indias forging sector. It holds the distinction of being the largest forging company in Eastern India and ranks among the top nationwide, supplying high-quality forged and machined components to both domestic and international clients.

The Companys facilities boast advanced production and quality control technologies, allowing it to readily meet the stringent quality demands of Original Equipment Manufacturers (OEMs) and Tier -1customers in India and abroad . Through consistent investments in expanding its production capabilities and enhancing its expertise, Ramkrishna Forgings has not only weathered sectoral challenges but has emerged even stronger.

Its ability to manufacture tailored products has broadened its product range and expanded its potential market. This capability has fostered strong partnerships with Tier-1 suppliers in the United States and OEMs in Europe. To further its global reach, the company has also strategically appointed sales leaders in key regions .The Company has a capability to manufacture components through cold forging , warm forging and hot forgings and has also made foray into castings .

FINANCIAL & OPERATIONAL PERFORMANCE

Financial Performance

• Revenue from Operations increased by 3.32 percent to

3,75,492.46 lakhs in 2025-26 from 3,63,429.92 lakhs in 2024-25.

• Export Sales decreased by 19.94 percent to 1,18,655.36 Lakhs in 2025-26 from 1,48,209.02 Lakhs in 2024-25.

• EBITDA from Operations increased by 15.75% to

56,642.88 lakhs in FY 2025-26 from 48,934.43 lakhs in FY2024-25.

• PBT dercreased by 47.80% to 11,671.02 lakhs in FY 2025-26from 22,356.91 Lakh in 2024-25 .

Analysis of Financial Statements: Statement of Profit and Loss:

Revenue from operations: The Revenues from Operations for the FY25-26 was 3,75,492.46 lakhs as compared to

3,63,429.92 Lakhs, showing an increase of 3.32%

Revenue from exports decreased by 19.94% to 1,18,655.36 Lakhs in 2025-26 from 1,48,209.02 Lakhs in 2024-25. The revenues in export segment decreased on account of the slow- down in consumption especially in the North American Market due to the tariff impact. The Domestic demand was also tepid in the first half of the year ,however the Company was able to offset the decline in exports with the increase in demand from the Domestic Market in the second half of the year. The Company has also taken steps to penetrate in the Passenger Vehicle ( including EV) segment . The Company has been continuously taking steps to expand its reach by adding new customers in the export market and by enhancing its product profile with the existing customers and new customers.

The revenue in the domestic segment has increased to

2,56,837.10 Lakhs in 2025-26 from 2,15,220.90 Lakhs in 2024-25 primarily on account of improvement in the domestic sales of the M&HCV segment by 12.86 % during the year and improvement in the product basket with the existing customers. Operating expenses: Operating expenses (Total expenses less Interest and Depreciation) increased marginally by 1.38% to 3,18,849.58 Lakhs in 2025-26 from 3,14,495.49 Lakhs in 2024-25. Operating expenses as a percentage of net sales stood at 84.92 % in 2025-26 as against 86.54 % in 2024-25.

Cost of Raw Material consumed: Material costs decreased by 2.51% to 1,88,549.72 lakhs in 2025-26 from 1,93,394.51 lakhs in 2024-25. Employee expenses: It is decreased marginally by 0.15% to 21,828.22 Lakhs in 2025-26 from 21,861.15 Lakhs in 2024-25.

Finance cost: The Finance cost increased by 20.03% to

17,606.22 Lakhs in FY25-26 from 14,667.90 Lakhs in FY24-25 . The increase in interest cost is attributable to the increase in the borrowings by 11.8 % during the year. The interest cover stood at 3.22 x in 2025-26 against 3.34 x in 2024-25. Profitability and margins: The EBITDA from Operations increased by 15.75% to 56,642.88 Lakhs in 2025-26 from

48,934.43 Lakhs in 2024-25. The EBITDA margin on net sales was 15.33 % in 2025-26 in comparison to 16.81 % in 2024-25. The Net profit after Tax stood at 8,650.53 Lakhs in 2025-26 as compared to 40,182.01 Lakhs in 2024-25. The net margin stood at 2.30% in 2025-26 as against 11.06% in 2024-25. The PAT for 2024-25 includes exceptional gain from sale of Globe All India Services Limited and also includes a deferred tax credit of 18,847.91 Lakhs primarily on account of merger with ACIL Limited.

Balance Sheet :

Capital employed (Total Assets less Current Liabilities excluding Current Maturities of Long Term Debt): The Capital employed in the business increased by 19.14%, to

4,83,259.94 Lakhs as on March 31,2026 from 4,05,632.47 Lakhs as on March 31,2025. The Increase was on account of increase in shareholder funds and loans during the year. Shareholders funds: The balance under this head increased by 8.79%, to 3,27,477.87 lakhs as on March 31, 2026 from 3,01,013.83 lakhs as on March 31, 2025 on account of increase in Share Capital and plough back of Profits.

External funds: The Companys Total Net Debt (after adjusting cash and cash equivalents, current investment and recourse bill discounting) increased by 17.16% to

1,63,878.17 Lakhs as on March 31,2026 from 1,39,880.70 Lakhs as on March 31,2025. The Net Debt-Equity ratio stood at 0.50x as on March 31, 2026 against 0.46x as on March 31, 2025. The Net Debt/EBITDA stood at 2.89 x as on March 31,2026 as against 2.86x as on March 31,2025.

Gross block of Fixed Assets including Right to Use Assets, Goodwill and Intangible assets : The Gross Block of Fixed Assets increased by 20.98% to 4,56,364.71 Lakhs as on March 31,2026 from .3,77,229.09 Lakhs as on March 31,2025. The Company has added 43,000 tons of Pressline production capacity and 28,800 tons of Casting production capacity during the year

Key Financial Indicators ( Particulars	in Lakhs except ratios)	As at Mar 31, 2025	As at Mar 31, 2026	Percentage- Change
Net Revenue from Operations	Rs. Lakhs	3,63,429.92	3,75,492.46	3.32
EBITDA	Rs. Lakhs	48,934.43	56,642.88	15.75
EBITDA Margin on net sales	%	13.46	15.08
Profit before tax (PBT)	Rs. Lakhs	22,356.91	11,671.02	(47.80)
PBT Margin on net sales	%	6.15	3.11
Net Worth	Rs. Lakhs	3,01,013.83	3,27,477.87	8.79
Total Net Debt	Rs. Lakhs	1,39,880.70	1,63,878.17	17.16
Total Net Debt/Equity	Times	0.46	0.50	8.70
Return on Avg.Net worth	Times	14.27	2.75
Current Ratio	Times	1.11	1.21	9.01
Interest Coverage Ratio	Times	3.34	3.22	(3.59)
Inventory Turnover Ratio	Times	2.44	2.43	(0.41)
Receivable Turnover Ratio	Times	4.20	4.10	(2.38)
Book Value per Share		166.28	180.48	8.54

Note:

• The formula for Interest Coverage Ratio has been taken as EBITDA/Interest

• The formula for EBITDA for this section does not include Other Income and Exceptions Items .

• The formula for Current Ratio is Current Assets divided by Current Liabilities

• The formula for Net Debt is after adjusting cash and cash equivalents, current investment and recourse bill discounting.

• The formula for Return on Avg.Net worth is Profit for the year divided by Average Shareholders Equity (Average Shareholders Equity = Average of total equity of current year and previous year)

• The formula for Inventory Turnover Ratio is Cost of Goods Sold divided by Average Inventory (Average Inventory = Average of Opening and Closing Inventory)

• The formula for Receivable Turnover Ratio is Credit Sales (Credit Sales = Revenue from operations - Subsidies/Government Grants - Export incentives) divided by Average Trade receivables (Average Trade receivables = Average of Trade receivables of current year and previous year)

RISK MANAGEMENT

Risk management at Ramkrishna Forgings Limited is an integrated discipline, embedded across business functions and linked directly to Strategy, Capital allocation and Operational Decision-making. The Companys framework encompasses the identification, assessment, monitoring and mitigation of risks through periodic reviews, robust internal controls and continuous Board-level oversight. In a year marked by trade policy volatility, capacity expansion and internal governance remediation, this framework was tested across multiple dimensions and strengthened in response.

Demand Cyclicality and End-Market Concentration

Heavy weighting towards the commercial vehicle segment exposes the Company to fleet replacement cycles and OEM build-rate decisions.

Mitigation: During FY26, the multi-year diversification programme advanced materially. Bulk dispatches of fully assembled bogie frames to Indian Railways commenced, opening a qualified addressable opportunity of over _2,000 crores per annum. The passenger vehicle segment progressed considerably with company securing order for supply from domestic and international OEMs alongside EV-platform export order — with PV targeted to contribute considerably by FY30. Off-highway and mining segments registered strong demand, supported by infrastructure-led cycles in tippers and construction equipment. Together, these initiatives broadened the revenue base across the automotive, railways, oil and gas, mining, farm equipment and general engineering sectors. The Company aims to derive more than 30 % of the Revenue from Operation from Non-Auto Sector by FY 30.

Export Markets, Trade Policy and Geopolitical Uncertainty

With 30 to 35% of revenue derived from North America and Europe, the Company is exposed to tariff actions, build-rate cycles and currency movements.

Mitigation: FY26 presented a complex landscape: the United States announced a 26% reciprocal tariff on Indian goods, while North American Class 8 build rates remained subdued for much of the year. The Mexico machining facility — established through the acquisition of Resortes Libertad S.A. de C.V. (since renamed Ramkrishna Forgings Mexico S.A. de C.V.) in August 2024 — approached commissioning, positioning the Company within the USMCA framework and may provide a structural hedge against trade barriers. An active expansion of the European customer base, where the prospective India-EU Free Trade Agreement is expected to strengthen cost competitiveness and diversify export concentration — Europe now contributes more than 40 % of total export revenue in FY 26 . On currency, as the company derives significant portion of the revenue from exports it provides a natural hedge and the company also follows a prudent policy of hedging its forex obligations .

Human resource risk :

Lack of a skilled workforce with specialised knowledge and expertise can impact operation and innovation. Mitigation : The Company provides better opportunities , fostering knowledge transfer within the Company. It remains committed to structure and impart necessary training program to develop new skills and update them with the latest technologies. It is also building a culture of ownership among employees and provides adequate insurance support for its senior employees and their families .

Financial Leverage and Debt Management

The net debt of approximately _1638 crores as of FY26, with net debt to EBITDA exceeding 2.75 times, creates sensitivity to interest rate movements and loan repayments .

Mitigation: The Company undertakes a Loan profile of higher door to door maturities which provides a considerable cushion to the cash flows of the Company. For FY27, a considerable reduction of debt is planned , supported by improved operating cash flows from higher utilisation and constrained fresh capex.

HUMAN CAPITAL

Ramkrishna Forgings Limited recognises its Intellectual Capital as its most valuable asset, spanning from executive leadership to the shop floor. The Company prioritises nurturing talent from within and attracting top talent with an intention to ensure productive engagement of an individual in meeting both professional and personal aspirations.

Training:

The Company is committed to building a skilled and future-ready workforce through continuous learning and development. Regular internal and external training programmesareorganizedtoenhancetechnical,functional, and behavioural competencies, enabling employees to keep pace with advancements in manufacturing and meet evolving customer expectations. Training programmes are customized to address specific business and customer requirements and are extended across all levels of the organization, including shopfloor employees, to ensure the required competencies are developed and continuously strengthened. Training is delivered through a combination of on-the-job learning, classroom sessions, and external learning interventions, fostering a culture of continuous improvement, operational excellence, and innovation. The effectiveness of these initiatives is reflected in the Companys achievement of the prestigious Total Productive Maintenance (TPM) recognition, demonstrating its commitment to developing world-class manufacturing capabilities.

In addition, the Company conducts mandatory and developmental training programmes on Health & Safety, Environmental, Social and Governance (ESG), Diversity, Equity & Inclusion (DE&I), Prevention of Sexual Harassment (POSH), stress management, leadership development, team building, and other statutory or business-specific requirements.

Employee engagement:

The Company is committed to fostering an inclusive and engaging work environment through various employee engagement initiatives. Programmes such as the Employee Suggestion Scheme, 5S, Poka-Yoke, and Kaizen competitions encourage innovation, teamwork, and continuous improvement. The ‘Umang initiative provides a platform for open communication between employees and management, enabling timely resolution of workplace concerns. The Company also celebrates employee milestones, cultural festivals, and organizes inter-plant sports and recreational events to strengthen teamwork and promote a sense of belonging.

Talent Philosophy:

The Company is committed to developing a strong leadership pipeline through structured talent management and development initiatives across all levels. Dedicated development programmes are conducted for Diploma Engineer Trainees (DET), Graduate Engineer Trainees (GET), and Management Trainees (MT). The Company also follows a competency-based succession planning process for leadership roles, including First-in-Line and Second-in-Line managers, to identify and prepare high-potential employees for future responsibilities. These initiatives promote internal talent development, strengthen leadership capabilities, and foster a culture of mentor-mentee relationships.

Performance and rewards:

The Company follows a structured performance management system to assess employee performance and recognize high performers. Performance is evaluated using trusted methods with clearly defined goals and performance metrics. The Company also offers performance-linked incentive programmes to reward outstanding performance and drive employee motivation. Recognition programmes such as Employee of the Month, Best Suggestion & Kaizen, and Maximum Attendance Award are conducted to encourage excellence and continuous improvement. Leadership Connect programmes are also organized periodically for senior professionals to align individual performance with business objectives.

To promote long-term commitment among senior management, the Company has an Employee Stock Option Plan (ESOP) under which eligible employees are granted stock options in accordance with the applicable scheme.

Health protection:

The Company is committed to providing a safe and healthy work environment for all employees. To support employee well-being, the Company provides a Group Health (Floater) Insurance Policy and a Group Personal Accident Insurance Policy, as applicable. Regular health and safety awareness programmes are conducted to educate employees on workplace health hazards and safe work practices. Health advisories, wellness information, doctors availability, and other safety-related updates are also shared regularly through email to promote awareness and preventive care.

Internal audit and control:

The Company has established adequate systems of internal controls and documented procedures covering all financial and operating functions. These are designed to provide reasonable assurance regarding the maintenance of proper accounting control, monitoring the economy and efficiency of the Company, protecting assets from unauthorised use or losses, and ensuring the reliability of financial and operational information. The internal controls are designed to ensure that financial and other records are reliable for preparing financial statements, collating other data, and maintaining accountability of assets.

Cautionary statement:

Statements in this Management Discussion and Analysis, describing the Companys objectives, projections, estimates, and expectations may be "forward-looking statements within the meaning of applicable laws and regulations. Actual results might differ materially from those either expressed or implied.