RattanIndia Enterprises Ltd Management Discussions

Global Economy

In 2024, the global economy demonstrated a remarkable resilience, rebounding from a series of significant disruptions. Despite this recovery, new challenges emerged in the form of increasing trade tensions, shifting policies and a general state of heightened uncertainty.

According to the International Monetary Fund, global GDP is projected to grow by 3.3% in 2024.This growth, however, was not uniform. Advanced economies saw a modest increase of 1.8%, while emerging markets and developing economies (EMDEs) experienced a more robust growth of 4.3%, highlighting a significant economic divide.

Global inflation showed signs of cooling down, with projections for a decline to 4.3% in 2025 and 3.6% in 2026. This trend is largely due to the monetary tightening measures implemented by central banks worldwide. However, ongoing fiscal discipline is crucial for long-term stability. While advanced economies are expected to reach their inflation targets sooner, EMDEs face a longer road. Although the prices of goods have mostly stabilised, service price inflation remains a concern in many areas.

The economic environment was further complicated by volatility in energy and commodity markets, as well as a prolonged period of high interest rates. This situation disproportionately affected developing nations that rely heavily on energy imports, while energyexporting countries benefited from steady demand and price increases.

Global trade experienced a modest recovery in 2024, with merchandise trade volumes growing by 2.4%. This recovery was hampered by ongoing geopolitical tensions and increasing protectionist policies. Export-focused economies, especially in the Asia- Pacific region, proved resilient, driven by strong demand for technology and consumer goods. However, conflicts and supply chain disruptions have collectively slowed the momentum of global trade, posing a threat to sustained economic expansion.

Outlook:

As the global economy steps into 2025, the outlook remains cautiously optimistic. While growth is expected to remain moderate amid persistent geopolitical uncertainties and structural transitions, stabilising inflation and gradual monetary easing in advanced economies could offer much-needed relief. Emerging markets are poised to drive global momentum, supported by demographic dividends, digital transformation and resilient domestic demand. However, risks remain, including climate-induced disruptions, trade fragmentation and the lagged effects of prolonged high interest rates.

Indian Economy

Indias economic story in FY2024-25 unfolded as a resilient narrative of balance between global headwinds and domestic momentum, between fiscal prudence and growth aspiration. The Indian economy posted a real GDP growth of 6.5% for the fiscal year, lower than the previous year but still standing tall amid widespread global economic moderation. A particularly strong finish in Q4, registering 7.4% growth, reaffirmed Indias economic stamina. Despite external shocks and trade friction, India remained the fastest-growing major economy, signalling the deepening roots of domestic demand and policy-driven structural strength.

Sectoral performance was a key differentiator this year, with the construction and agriculture sectors emerging as growth anchors. Construction activity soared with 9.4% real growth for the year and an even stronger 10.8% in the final quarter. Public administration, financial services and real estate also showed buoyancy. In a welcome turnaround, the agriculture sector grew 4.4%, helped by better weather conditions and rural revival, compared to 2.7% in the prior year. Services remained a backbone, with sectors such as IT and financial services contributing significantly to overall GDP growth. This sector has also been a major driver of Indias export growth, with services exports exceeding goods exports in value.

Consumption and investments, Indias twin growth engines, fired in tandem. Private final consumption expenditure (PFCE) grew by a healthy 7.2%, up from 5.6% in FY2023-24, reflecting strong domestic confidence and rural resurgence. Meanwhile, gross fixed capital formation (GFCF),

a proxy for investments, rose 7.1%, with a sharp spike to 9.4% in the final quarter. Infrastructure spending and manufacturing capex drove this rise, supported by government- led initiatives and PLI-linked industrial expansion.

Price stability and fiscal consolidation added macroeconomic credibility to the years progress. Retail inflation cooled steadily, ending the fiscal year at 3.34% in March 2025, well within the RBIs comfort zone. The Reserve Bank of India, citing stable inflation and looming global risks, reduced the repo rate to 5.5%. On the fiscal front, the government achieved a deficit of 4.8% of GDP, in line with its glide path and reiterating its intent to reduce it to 4.4% in FY2025-26.

Indias external sector stayed resilient amid shifting trade currents and geopolitical complexities. Total exports of goods and services reached USD 824.9 billion. A standout performer was the IT sector, which rebounded with 12.5% growth, totalling USD 224.4 billion in exports, a reflection of renewed global demand and Indias digital edge. However, storm clouds emerged in the form of rising trade tensions, particularly a proposed 25% U.S. tariff on Indian exports tied to Russian oil dependencies. If enacted, this could impact up to USD 64 billion worth of exports, equivalent to nearly 2% of the countrys GDP, posing a risk to its external balances.

In 2024-25, gross GST collections reached a record ?22.08 lakh crore, reflecting a 9.4% year-on-year increase. This growth indicates greater formalisation of the economy and enhanced tax compliance.

Looking ahead, India remains the worlds most vital growth engine. The IMF projects Indias growth at 6.4% for FY 2025-26, more than double. With inflation expected to remain moderate and investments gaining traction, the growth outlook remains robust. Domestic consumption, manufacturing expansion and digital- led service exports are expected to lead the next wave of growth, even as the country navigates rising global protectionism and capital market volatility.

Indias Digital Economy

Tier II and Tier III cities are driving digital adoption, supported by the worlds lowest average data cost (~$0.12/ GB). The Unified Payments Interface (UPI) has become a global benchmark for real-time transactions, processing 172 billion transactions in 2024, with over 14,000 crore transactions in FY2024-25 alone.

Currently, Indias digital economy in FY2024-25 is undergoing a foundational shift-from being a utility of convenience to becoming a transformational driver of inclusive growth and global competitiveness. According to the Ministry of Electronics and IT (MeitY), the digital economy is projected to exceed USD 1.5 trillion by FY2024-25. The Economic Survey 2024-25 estimates its contribution to GDP at 13.42%, up from 11.74% in FY2022- 23, with projections of reaching nearly 20% by 202930, surpassing traditional sectors like agriculture and manufacturing. This positions India as the third-largest digital economy globally.

Indias pioneering Digital Public Infrastructure (DPI)— including Aadhaar, DigiLocker, CoWIN, and UPI has enabled seamless service delivery at scale. Notably, the Open Network for Digital Commerce (ONDC) has onboarded over 3 lakh sellers, creating an open and democratised digital retail landscape. Over 1.42 billion Aadhaar IDs, generated by April 2025, have transformed how citizens access government services, subsidies, and financial inclusion.

Even at the grassroot level, digital tools are empowering communities. A 2025 survey of MSMEs found that 73% of small businesses in rural and semi-urban areas reported higher growth due to digital adoption, driven by smartphones and digital payments rather than complex infrastructure.

Scaling the Digital Frontier: Infrastructure, Startups and Exports

Indias digital infrastructure is scaling rapidly through government-backed initiatives, including Digital India, BharatNet, Make in India, MeghRaj (National Cloud), and India Stack. The country now boasts 977 MW of data centre capacity, providing the backbone for expanding digital services.

Indias 5G rollout across more than 700 districts is unlocking next-generation applications in healthcare, logistics, manufacturing, and education. Meanwhile, the ?10,000 crore IndiaAI Mission is propelling the nation towards becoming a global hub for AI innovation.

Backed by over 900 million internet users, India is home to the second-largest online market globally.

Now, India is the third-largest startup ecosystem in the world, comprising over 120,000 tech startups, including more than 110 unicorns. These startups are building solutions around emerging technologies like AI, blockchain and IoT—catalysed by growing investor confidence and government support.

The momentum is also reflected in the global success of Indian digital services. IT and digital service exports hit USD 224.4 billion in FY2024-25, growing by 12.5% YoY. India hosts over 55% of the worlds Global Capability Centres (GCCs) at present, strengthening its position as a global back-office and innovation hub for top multinationals.

Future Imperatives: Bridging Gaps, Building Trust and Sustaining Momentum

While Indias digital economy is surging ahead, several challenges require focused attention. Key among them are the skills gap in emerging technologies, cybersecurity threats, and the need for a robust regulatory framework. The Digital Personal Data Protection Act, 2023, is a step toward ensuring user privacy and data security; however, evolving threats necessitate continuous investment in cybersecurity infrastructure and public awareness.

To realise the full potential of "Viksit Bharat," India must accelerate digital skilling programs, particularly in rural and underserved areas, to equip its workforce for an AI- and data-driven future. Investments in fixed-line broadband infrastructure, especially in remote regions, will be critical to bridging the digital divide and ensuring equitable access.

By reinforcing its commitment to innovation, infrastructure, and inclusive growth, Indias digital economy is well- positioned not only to drive national progress but also to emerge as a global model for digital transformation.

Opportunities

• Financial Inclusion: Digital payment systems and direct benefit transfers (DBT) have helped bring millions into the formal financial system and reduced corruption in welfare schemes.

• Job Creation: The digital economy is creating new employment opportunities in areas such as IT services, e-commerce, and the gig economy.

• Global Competitiveness: The country is enhancing its global standing as an ICT services exporter and a hub for innovation and technology.

• Artificial intelligence: AI will accelerate Indias digital economy by boosting productivity, automating services and enabling data-driven innovation across sectors like finance, healthcare and e-commerce. It will also empower MSMEs, enhance financial inclusion and create scalable solutions tailored to Indias diverse population.

• Satellite Internet: It will bridge Indias digital divide by delivering high-speed connectivity to remote areas. It will also enhance disaster resilience, empower IoT- driven industries and reduce urban-rural infrastructure gaps, accelerating inclusive growth.

Challenges

• Digital Divide: A significant gap still exists between urban and rural areas in terms of internet access and digital literacy, which can lead to socioeconomic inequalities.

• Cybersecurity: The rapid increase in digital transactions and online services makes the country vulnerable to cyber threats, including hacking and data breaches.

• Infrastructure Constraints: Despite progress, a reliable high-speed internet infrastructure remains a challenge in many remote and rural regions.

• Regulatory Framework: The regulatory landscape is struggling to keep pace with the rapid advancements in technology, leading to uncertainty in areas such as AI and data protection.

• Job Displacement: While new jobs are being created, automation and digital platforms may lead to the displacement of traditional jobs, necessitating a focus on upskilling the workforce to meet the evolving needs of the labour market.

Our Business

SHAPING THE NEXT

At the intersection of innovation and opportunity stands RattanIndia Enterprise Ltd, a dynamic force reshaping industries through cutting-edge ventures in e-commerce, retail, electric motorbikes and drone technology. As India accelerates toward a $5 trillion economy, were not just adapting to change, were driving it. Our diversified portfolio merges sustainability with scalability, from revolutionising last-mile delivery with drones to decarbonising mobility with affordable EVs. By leveraging technology, consumer insights and agile manufacturing, we turn emerging trends into tangible growth. This is more than business; its a blueprint for the future. Welcome to an era where ambition meets execution and possibilities become realities.

Business Vertical 1 E-Commerce

Indias e-commerce revolution continues to gain strong momentum, fuelled by the unprecedented rise in internet access, smartphone usage and robust digital infrastructure. As of March 2025, India recorded 1,156.9 million wireless internet subscribers, up from 913.3 million in March 2024, reflecting the ongoing deepening of digital connectivity. The countrys smartphone user base is also expanding rapidly and is expected to surpass 1 billion by 2026, cementing Indias status as one of the largest digitally connected markets globally.

This digital backbone has redefined the contours of commerce in India. E-commerce is no longer limited to a single business model; it now encompasses a broad spectrum, including Business-to-Business (B2B), Direct-to-Consumer (D2C),Consumer-to-Consumer (C2C) and even Consumer-to-Business (C2B) platforms. As a result, the Indian e-commerce landscape is more dynamic and inclusive than ever before.

In terms of market size, Indias e-commerce sector reached USD 107.7 billion in 2024, according to the IMARC Group and is poised for exponential growth. The market is projected to reach USD 650.4 billion by 2033, expanding at an impressive CAGR of 19.7% from 2025 to 2033. This growth is not incidental; it is the outcome of a confluence of key drivers, including increased urbanisation, a sharp rise in digital transactions, and government-led policy initiatives.

Policy Support and Digital Payments Transformation

The surge in digital payments has played a catalytic role in this growth journey. The Reserve Bank of Indias Digital Payments Index (RBI-DPI) showed a significant surge to 493.22 in March 2025, a 5.9% increase from 465.33 in September 2024, indicating a robust acceleration in digital payment adoption across the nation. This shift has been significantly enabled by proactive government efforts under initiatives like Digital India, which emphasise secure, accessible and inclusive digital transactions. The push for electronic payments has not only increased consumer confidence but also accelerated the transition of traditional businesses into the digital space.

Another major policy reform shaping this ecosystem is the Goods and Services Tax (GST). With its uniform tax structure, GST has dismantled the complex web of state-specific taxes, simplifying e-commerce operations across India. The Ministry of Finance confirms that this tax harmonization has improved compliance, facilitated interstate logistics and encouraged higher investment in e-commerce. More importantly, it has created a level playing field, enabling both large corporations and small sellers to compete on equal terms, fostering healthy competition and expanding consumer choice.

From a regulatory lens, the governments Open Network for Digital Commerce (ONDC) has emerged as a major policy innovation in FY2024-25. With over 700,000 sellers onboarded across 400+ cities, ONDC seeks to democratise access and reduce platform monopolies by creating an interoperable digital retail ecosystem. This could significantly alter platform dynamics, especially for MSMEs, by lowering entry barriers and increasing buyer reach.

Rural Connectivity and Consumer Behaviour

Indias ambition to bridge the urban-rural digital divide has further elevated the e-commerce narrative. The BharatNet program, which aims to provide high-speed internet connectivity to rural areas, is already showing tangible results. As of December 2024, significant progress is made by connecting over 2.14 lakh gram panchayats through 692,299 km of optical fibre cables (OFCs), 11.74 lakh FTTH connections and 1.04 lakh Wi-Fi hotspots. This rollout has unlocked a vast, previously untapped rural consumer base, allowing millions of first-time users to access e-commerce platforms and digital marketplaces.

Beyond boosting consumer sales, enhanced rural connectivity is also empowering local manufacturers, artisans, and micro-entrepreneurs. Direct access to online platforms is helping them bypass traditional intermediaries, increase their margins, and sell directly to domestic consumers. This not only fuels economic inclusion but also contributes to balanced regional development, reducing urban-rural economic disparities.

In terms of consumer behaviour, mobile commerce continues to dominate, with nearly 83% of transactions originating from smartphones. This mobile-first shift is supported by seamless digital payments infrastructure. UPI alone contributes to nearly half the transaction volume, while Buy Now, Pay Later (BNPL) options are gaining traction, particularly among Gen Z and first-time digital consumers. Another structural shift is the rapid growth of quick commerce (q-commerce), particularly in urban India. However, this rapid scale-up has raised questions around profitability, with players facing rising operational costs despite improved monetisation through delivery fees, ads and loyalty programs.

Key Trends & Drivers

• Tier 2+ Domination: A major shift is the growing influence of shoppers from Tier 2, Tier 3 and smaller cities. These regions now account for a substantial portion of new online shoppers (as high as 60%) and are driving market expansion. E-commerce is democratising access to brands and products in these previously underserved areas.

• The Rise of Q-Commerce & D2C: Quick commerce, offering ultra-fast delivery (sometimes in minutes), has become a significant force, particularly for groceries and other essentials. It now accounts for a significant percentage of e-grocery orders approximately ~75% of all e-grocery orders. With several platforms redefining delivery speed and consumer expectations, the segment has grown from USD 300 million in 2022 to over USD 7 billion in FY2024-25. Simultaneously, Direct-to-Consumer (D2C) brands are gaining immense traction by leveraging digital channels and social media to build direct relationships with customers, contributing significantly to the online retail market.

• Gen Zs Influence: Gen Z is emerging as a crucial consumer cohort, comprising nearly 40% of e-retail shoppers. This demographic is highly influenced by social media, is more experimental in their shopping habits, and prefers digital payment methods like UPI. This has led to the rise of trend-first fashion, which is expected to quadruple in size by 2028.

• Technological Innovation: AI is at the forefront of this evolution, enabling hyper-personalisation, from tailored product recommendations to dynamic pricing and chatbot support. Additionally, voice commerce is gaining momentum, especially with support for regional languages, making online shopping more accessible to a wider audience.

• Social & Live Commerce: Social media platforms are no longer just for discovery; they have become full-fledged shopping destinations. Live streaming, influencer partnerships and in-app shopping features are driving sales directly through social interactions, with platforms like Instagram and Facebook being major contributors to social commerce revenue.

Opportunities

The Indian e-commerce sector is thriving, fuelled by expanding internet access and evolving consumer preferences. Opportunities abound in personalised shopping experiences powered by AI, catering to diverse linguistic and regional needs. Smaller cities and rural areas offer immense growth potential, driven by affordable logistics and digital payments. Quick commerce is redefining convenience with ultra-fast deliveries, while D2C brands are tapping into niche markets, such as sustainable and premium products. Social commerce is revolutionising the way consumers discover and purchase goods through social media platforms. Cross-border trade enables local artisans to reach global audiences, while fintech solutions enhance the affordability of their products. Sustainability is gaining traction, with demand for eco-friendly practices. Success hinges on innovation, adaptability and customercentric strategies.

Overview Of Our Business

Cocoblu

Cocoblu Retail Ltd., a wholly-owned subsidiary of RattanIndia Enterprises Ltd., was incorporated in October 2021 in Delhi. Headquartered in Bengaluru, it specialises in e-commerce, helping brands of all sizes succeed in competitive online marketplaces. The Company emphasises technology, processes, infrastructure and a talented team to deliver consistent results and customer delight.

In 2022, Cocoblu took over a fashion and apparel business from a previous major seller, marking its rapid ascent in the sector. This strategic move positioned it as a top seller, focusing on fulfilment and scaling solutions to drive brand growth.

Cocoblus business model is centred on empowering brands through inclusive practices and continuous improvement, with operations that are working capital-intensive to ensure stock availability. It partners closely with large e-commerce platforms, integrating services to enhance online presence and efficiency.

Over the past three years, Cocoblu has significantly increased its business size and earned the Great Place to Work certification for 2025-26. In 2025, it established a new entity to support rapid delivery initiatives in the quick commerce segment, aiming to compete in the fast-growing market.

Great Place To Work?	1200+	6.4 million
Certification	Active vendors	Unique items

 

22 states	~230+	137 million
Presence	Team size	Unique orders

 

183	4.7 star	20,000+
Amazon Fulfilment Centres	Amazon rating	Pin codes served

Financial Performance:

For the full fiscal year 2024-25, Cocoblu Retail reported a revenue of Rs. 6,528, representing a significant 19% increase when compared to Rs. 5,490 Cr in FY2023-24. The Companys EBITDA for FY2024-25 reached Rs 180 Cr, showing a 21% growth from Rs 149 Cr in FY2023-24. Notably, Cocoblu Retail has maintained an EBITDA-positive status since its inception. Its total income for FY2024-25 was reported as Rs 6,540 Cr. Cocoblu Retails impressive achievement of reaching revenues exceeding H6,500 Crores within just three years of operations is a pace described as much faster than that of the new-age businesses.

Operational Performance:

Cocoblu served approximately 12.7 Cr orders, equivalent to about 4 orders every second across the year. This marks a substantial 19% growth in orders compared to the 10.7 Cr orders served in FY2023-24. Cumulatively, since its inception in March 2022, Cocoblu has serviced over 31 Cr orders. The Company expanded its network of active vendors by 20%, from over 1,000 active vendors in FY2023- 24. The range of unique items offered by Cocoblu also expanded significantly throughout the fiscal year.

Customer Engagement: Customer satisfaction remained high, with Cocoblu consistently maintaining a high rating on the Amazon platform.

Neobrands

Neobrands Limited, a wholly-owned subsidiary of RattanIndia Enterprises Ltd., was founded in 2021 and acquired in November 2022. Based in Delhi, it operates as an internet-first brand specialising in direct-to-consumer apparel for men and women, with an expanding presence in fashion and music categories.

Initially focused on building a house of brands, Neobrands launched its fashion business in April 2023, covering everyday fashion, denim, athleisure and performance wear. It emphasises stylish, affordable products sold online to reach a broad audience.

Key brands include INKD for trendy jeans and t-shirts, as well as Fyltr and Pumpd for athleisure wear. During FY2024- 25, Neobrands diversified its private label offerings by launching four new brands: Akkord (Musical Instruments),

Kaari (Ethnic Premium Wear), Kalaanj (Ethnic Economy Wear) and Neomate (Stationery), which were noted to be gaining market acceptance. Its existing private labels, Fyltr (Western Clothing), Pumpd (Athleisure), and Inkd (Denim), continued to achieve "Amazon top brands" status.

Competitive Advantages Strategic MSME Partnerships:

The Company collaborates with over 1,000 MSMEs, integrating their diverse product offerings into its platform. This ensures a wide, cost- effective inventory, enhances supply chain flexibility and supports local economies, giving RattanIndia Enterprises an edge over competitors reliant on larger suppliers. By empowering MSMEs to transition online, the Company taps into underserved markets, fostering loyalty and expanding its customer base while promoting economic growth, unlike purely profit-driven rivals.

Scalable Fulfillment Infrastructure:

Operating with a network of nearly 180 + fulfillment centres, the Company ensures rapid delivery and efficient logistics. This extensive network allows for seamless distribution across various regions, minimising delays and enhancing customer satisfaction. The companys strategic placement of fulfillment centres optimises supply chain operations, leading to reliable and timely service delivery.

Technology-Driven Operations:

The Company leverages advanced technology for inventory management, demand forecasting and customer engagement, enabling seamless scaling and personalised shopping experiences. This tech edge differentiates it from less agile competitors.

Rapid Market Penetration:

Achieving "Top Seller" status on major e-commerce platforms within a short period showcases the Companys strong brand-building and customer trust, outpacing newer entrants. This accomplishment reflects the companys effective marketing strategies and its ability to adapt to market demands quickly, highlighting the loyal customer base that the company has cultivated over the years.

Strategy for Growth Technology Optimisation:

The Company will enhance its tech stack for advanced inventory management, AI-driven demand forecasting, and personalised customer experiences. This includes leveraging data analytics to optimise pricing and promotions, as well as improving conversion rates on e-commerce platforms.

Brand Portfolio Growth:

The Company will focus on scaling its private labels and onboarding premium brands, building on its "Top Seller" status. Strategic marketing campaigns will target Gen Z and Millennials, leveraging Indias 1 billion internet users by 2026.

Geographic and Category Diversification: The Company plans to expand into underserved Tier-II and Tier-III cities while increasing the number of brand it works with, catering to various segments of the economy.,. This will tap into Indias low e-commerce penetration rate (under 5%), driving a higher market share.

Business Vertical 2

Electric Vehicle

Indias electric vehicle industry reached a new milestone in FY2024- 25, crossing 2 million annual sales for the first time. A total of 2.03 million EVs were sold, representing a 15.7% year-on-year growth, as per EV Reporter. This surge comes on the back of rising awareness, expanding charging infrastructure and strategic policy nudges.

FY2024-25 witnessed a subtle yet powerful shift in Indias EV narrative, from one driven by subsidies to one centred on market regulation, industry readiness, and scale. On August 4, 2025, NITI Aayog unveiled a new blueprint calling for a time-bound National EV Policy, aiming for a 30% EV share by 2030. At the same time, concerns about Indias underperforming PLI (Production Linked Incentive) scheme, which has disbursed just $1.7 billion of the allocated $23 billion, highlight the need for better execution frameworks.

The Indian EV market in FY2024-25 was characterised by its continued dominance of two and three-wheelers, which together accounted for over 90% of total sales.

• Electric Two-Wheelers (E-2Ws): This segment remains the primary growth driver, with over 1.2 million units sold, representing a growth of around 19%. E-2Ws accounted for nearly 60% of all EV sales.

• Electric Three-Wheelers (E-3Ws): Sales of e-rickshaws and cargo carriers were robust, with combined sales reaching around 700,000 units. This segment is particularly vital for last-mile connectivity and logistics, and its penetration in the passenger category is especially impressive, reaching over 22%.

• Electric Four-Wheelers (E-4Ws): The electric car segment experienced a notable increase, with sales exceeding 100,000 units for the first time. The segment experienced a year-over-year growth of over 14%.

• Electric Buses (E-Buses): The e-bus segment saw a slight decline in sales in FY2024-25 compared to the previous year. This segments growth is heavily tied to government-led procurements and initiatives.

Policy and Regulatory Landscape

The governments approach to the EV sector underwent a significant shift in FY25. The transition away from the FAME II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme and the introduction of new policies marked a significant turning point.

• PM E-DRIVE Scheme: The FAME II scheme was replaced by the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme. This new policy, with a substantial budget, aims to support a broader range of electric vehicles and focuses on developing a robust charging infrastructure and upgrading testing facilities.

• Production-Linked Incentive (PLI) Schemes: The government continues to boost local manufacturing through PLI schemes for both Advanced Chemistry Cell (ACC) batteries and the automobile and auto component industry. These initiatives are crucial for reducing import dependency and building a self-reliant EV ecosystem.

• The Electric Mobility Promotion Scheme (EMPS), introduced by Indias Ministry of Heavy Industries, is a four-month program (April 1 to July 31,2024) with a budget of Rs.500 crore. It provides subsidies up to Rs.10,000 for electric two-wheelers and Rs.50,000 for three-wheelers to encourage adoption and support domestic EV manufacturing.

• Charging Infrastructure Development: The government is also focusing on expanding charging infrastructure for electric vehicles, with initiatives such as setting up charging plazas and supporting the development of charging infrastructure at public locations.

• Investment and International Players: Indias new EV policy, which offers reduced import duties to companies that invest in local manufacturing, is designed to attract global players.

Opportunities and Challenges

The Indian EV industry is at a critical juncture. FY25 highlights both the immense potential and the significant hurdles that need to be addressed to achieve the ambitious target of 30% EV penetration by 2030.

Opportunities

• Growth in Tier 2 and Tier 3 Cities: EV adoption is no longer limited to major metropolitan areas. The expansion of charging infrastructure and the availability of affordable models are driving growth in smaller cities, creating new markets.

• Battery Technology and Localisation: With dedicated PLI schemes and a focus on R&D, India has a significant opportunity to become a hub for battery manufacturing, which would lower costs and reduce reliance on imports.

• Commercial Vehicle Electrification: The electrification of commercial fleets, including e-rickshaws, e-cargo carriers and e-buses, presents a major opportunity for both economic and environmental benefits.

Challenges

• Inadequate Charging Infrastructure: Although progress has been made, the current charging infrastructure remains insufficient to support widespread EV adoption, particularly on highways and in rural areas. This leads to "range anxiety" among potential buyers.

• High Initial Cost: Despite government incentives, the upfront cost of EVs remains a significant barrier for many price- sensitive consumers compared to traditional internal combustion engine (ICE) vehicles.

• Supply Chain and Raw Materials: The industry continues to face challenges in securing a stable supply of critical minerals and components required for battery production, making it vulnerable to global market fluctuations.

OEMS	Number of Products	Range(Km)	Battery Capacity (kWh)	Ex-showroom price (Rs.)
Revolt	5	100-150	22-324	94,990-1,39,950
MATTER	1 (2 variants)	172	5	1,83,308-1,93,826
Matter	2 (4 variants)	110-187	4.4	99,999-1,49,999
ULTRAVIOLETTE	3 (6 variants)	165-323	4-10.3	1,75,000-2,99,000

Overview of the Business

Revolt Motors, a wholly-owned subsidiary of RattanIndia Enterprises Limited, is a key player in Indias electric motorcycle sector, acquired in January 2023 to drive sustainable mobility. Based in Manesar, Haryana, it operates a cutting-edge manufacturing facility that produces AI-enabled electric motorcycles, including the RV400, RV 400 BRZ, RV Blaze X, RV1, and RV1+. These motorcycles are designed for affordability and accessibility. With a network of over 200 dealerships across India and an emerging presence in Nepal and Sri Lanka, Revolt targets the worlds largest two-wheeler market, focusing on eco-friendly commuting solutions tailored to diverse consumer needs.

Revolts motorcycles feature advanced technology, including 3.24 kWh lithium-ion batteries, regenerative braking, smart riding modes and mobile-based controls with 4G connectivity and over-the-air updates.

These innovations ensure a seamless riding experience while keeping operational costs low compared to petrol bikes, aligning with Indias push for green transportation and appealing to environmentally conscious riders.

Performance: In FY2024-25, Revolt Motors achieved a 56% increase in units sold, reaching 12,322 compared to 7,917 in FY2023-24, reflecting strong consumer adoption. The Company launched its fifth electric motorcycle, the RV BlazeX, in Eclipse Red, Black and Sterling Silver Black, expanding its portfolio. The Company also launched Indias first electric commuter bikes, the RV1 and RV1+, launched in September 2024, with massive bookings.

Revolt expanded its dealership network to 206 across 180 cities and 24 states/UTs, up from 115 in Q4 FY24. The company also entered Nepal with 15 new dealerships* and Sri Lanka with 12 new dealerships*. It also debuted on a major e-commerce platform, expanding its market reach. Revolt earned the ISO 9001:2015 certification for its Quality Management System and the "Franchisor of the Year - Electric Vehicle" award at the 21^st National Franchise Excellence Awards, underscoring its operational excellence and leadership position in Indias EV market.

The Compa ny secured Government of India EV subsidy approvals, including EMPS 2024 ( Rs. 10,000 per motorcycle) and the PM-E Drive scheme ( Rs. 5,000 per motorcycle), emphasising its bikes 70% lower Total Cost of Ownership compared to petrol bikes.

*Network plan of Distributor in immediate future.

https://niti.gov.in/whats-new/unlocking- 200-billion-opportunity-electric-vehicles-india

https://evreporter.com/wp-content/ uploads/2025/05/EVreporter-India-EV-Report-FY24-25.pdf

https://jmkresearch.com/e-bikes- transforming-india-two-wheeler-market/

Competitive Advantages: Affordable Technology: Revolts motorcyclesoffer advanced features like regenerative braking, 4G connectivity, and over-the-air updates at competitive prices starting at ?94,990, with running costs one-tenth of those of petrol bikes, appealing to cost-conscious consumers.

Robust Distribution Network: With 206 dealerships across 180 cities and 24 states/UTs, as well as a presence in Nepal, Revolt ensures wide market accessibility, outpacing competitors with limited physical or online reach.

Superior Product Quality: The ISO 9001:2015 certification and the "Franchisor of the Year - Electric Vehicle" award at the 21^st National Franchise Excellence in FY2024-25 validate Revolts quality management and industry leadership, fostering consumer trust.

Technological Innovation: Features such as mobile-based controls and a 150 km range, powered by 3.24 kWh lithium-ion batteries, provide a seamless, tech-driven riding experience, setting Revolt apart from its less advanced competitors.

Brand Recognition: Revolts rapid achievement of strong market presence and awards enhances its brand equity, giving it an edge over newer entrants in the EV twowheeler space.

Strategy for Growth:

Manufacturing Scale-Up: Revolt plans to ramp up its production capacity in the upcoming years at its Manesar, Haryana facility, aiming to meet rising domestic and international demand while ensuring supply chain efficiency.

Geographic Expansion: The company aims to expand its dealership network to 400 across India, targetingTier-I and Tier-II cities, and to grow internationally beyond Nepal and Sri Lanka into new markets.

Product Line Diversification: Launching new models in FY2024- 25, Revolt continues to expand its portfolio to cater to a diverse range of consumer segments, from urban commuters to performance seekers.

E-Commerce Market Entry: Revolts debut on a major online marketplace in FY2024-25 targets tech-savvy consumers, complementing its physical network and aligning with Indias e-commerce growth trend.

Government Scheme Utilisation: By leveraging subsidies from the PM Electric Drive Revolution in Innovative Vehicle Enhancement Scheme (PM E-DRIVE Scheme), Revolt reduces consumer costs, boosting adoption and aligning with Indias sustainable mobility goals.

Source: https://www.autocarpro.in/news/revolt-motors-plans-to-double-annual-production-capacity-after-50000th-unit-milestone-127083

Business Vertical 3

Global UAV Industry

The global Unmanned Aerial Vehicle (UAV) industry, also commonly referred to as the drone industry, is undergoing a period of rapid growth and transformation. 2024 was the year the drone industry stopped being a curiosity and started acting like core infrastructure. The global drone market is experiencing a significant expansion, with its value projected to grow from an estimated $73.06 billion in 2024 to $163.60 billion by 2030. This represents a strong Compound Annual Growth Rate (CAGR) of 14.3% over the forecast period. This phenomenal expansion is fuelled by technological advancements, favourable regulatory environments and a significant diversification of applications beyond its traditional military roots.

While the military segment remains a significant driver of the UAV market, the commercial segment is now a powerhouse. Commercial applications, such as precision agriculture, infrastructure inspection, mapping and surveying, and media and entertainment, are rapidly expanding.

2024 saw credible operational wins (medical/critical deliveries in regulation-friendly regions), led by specialist players that carved niches rather than replacing last-mile trucks overnight. The Zipline story — high delivery counts in healthcare corridors

— illustrated that drone logistics advances with favourable regulation and concentrated routes.

In terms of technology, multi-rotor drones (like quadcopters) and electric propulsion dominate the market. Multi-rotor drones are favoured for their stability and ability to hover, making them ideal for inspection and photography. The rise of electric drones is supported by advancements in battery technology, which are extending flight times and enhancing performance. However, hydrogen fuel cells are emerging as a promising alternative for even longer endurance.

The past few years have witnessed drones emerge as decisive tools in modern warfare and national security strategies. Conflicts across regions—from Eastern Europe to West Asia and South Asia—have redefined the role of unmanned aerial systems (UAS), demonstrating both their disruptive power and their vulnerabilities. Drones have shifted warfare from large-scale hardware to low-cost, high-volume attrition tools, democratizing combat power. Border security and antiinfiltration operations increasingly rely on UAVs and counter-UAVs as critical enablers. Drone proliferation fuels asymmetric warfare, where state and non-state actors can project influence at relatively low cost.

Global Takeaways for the Drone Industry due to recent conflicts:

Shift to Loitering Munitions & FPVs - Affordable, high-impact drones are becoming the "artillery shells" of modern wars.

Counter-Drone Systems - Growth in jamming, interception, and AI- enabled radar is as critical as UAV deployment itself.

Mass Production & Swarming -

Conflicts highlight the need for drones that can be produced and deployed in tens of thousands.

Dual-Use Innovation - Civilian and commercial drone technologies are increasingly adapted for military and security use.

Supply Chain Geopolitics -

Countries are localizing UAV manufacturing to reduce dependency on foreign suppliers.

What drove the market • Commercial scale-up and services take off: After years of pilots and proofs-of-concept, 2024 delivered scale, including drone-as-a-service (DaaS), fleet operations with single remote pilots supervising multiple aircraft, and wider commercial applications (energy inspections, mapping, agriculture, construction, and warehouse intralogistics). Analysts flagged services as the largest near-term segment, while hardware unit revenue remained attractive as industrial payloads and industrial airframes matured.

• Software, autonomy and AI became the "secret sauce": Investment shifted strongly toward on-board autonomy, edge AI for sensor fusion and advanced autonomy stacks that enable safe Beyond Visual Line Of Sight (BVLOS) missions. The Al-in-drones market alone was estimated at USD 658.6 million in 2024 and is exhibiting a much higher CAGR than hardware, a signal that much of the value shift is due to software.

• Regulatory progress unlocked use cases: Regulators (notably in the US and Canada) made incremental but meaningful moves to permit expanded BVLOS operations and remote ID frameworks. Those regulatory steps were essential for business cases such as medical deliveries, pipeline inspections, and logistics. Where regulators remained conservative, operations stayed local and tethered.

• Military demand and conflict innovation: Conflict zones — most visibly Ukraine, continued to catalyse rapid innovation and adoption of loitering munitions, FPV attack drones and ISR platforms. That combat experience both increased defence procurement and accelerated the market for counter-UAV systems and hardened communications/ security solutions. Analysts and policy centres flagged the Ukraine conflict as an inflection point for the militarisation and tactical utility of small and mid-sized UAVs.

Indian Drone Industry

Drones have moved fast from niche gadgets to strategic industrial tools. In FY2025, Indias drone sector stands at an inflexion point: the market is no longer experimental but has become commercially mature in multiple verticals, supported by an assertive policy push that favours domestic manufacturing, skills development, and wider operational freedom for unmanned aerial systems.

Indias drone market was valued at approximately USD 654 million in 2024, driven by rising commercial use cases, defence demand, and government stimulus, and is forecast to more than double to about USD 1.43 billion by 2029, representing a compound annual growth rate (=CAGR) of approximately 17%. These headline numbers capture a rapid scaling of both hardware manufacturing and drone-enabled services (DaaS) across agriculture, logistics, infrastructure and public safety.

The on-ground footprint is expanding quickly. Official and industry tallies show tens of thousands of registered drones nationwide, public reporting in early 2025 cites over 29,500 registered drones in India (DGCA/official disclosures aggregated by national media). Simultaneously, Indias innovation ecosystem has produced over 200 drone startups, which have attracted more than USD 140 million in investment since 2014, a sign that capital is following product-market fit in select segments.

Policy is the accelerant. India has designated large portions of its national airspace as "green zones" (permitting routine operations up to 400 ft in many areas), simplified registration procedures, and tightened import controls to encourage localisation. The governments Production- Linked Incentive (PLI) scheme for drones — supported by tranche allocations under the Union budgetary framework — aims to stimulate domestic manufacturing, value addition, and exports. Reports around FY2025 note increased allocations under PLI instruments, reflecting a stronger fiscal focus on deep-tech and drone components.

The Indian governments ambition to make the country a global drone hub is being realised through strategic policies and financial support. With the right push, including a substantially larger incentive package and simplified export regulations, the industry could help unlock up to $23 billion in manufacturing potential by 2030.

A handful of Indian firms and defence suppliers anchor the sector; firms focused on unmanned systems, avionics, payloads, and services (including pilot training, mapping, and analytics) are beginning to command visible market shares and margins. At the same time, regional hubs and state initiatives (drone summits, training programs) are helping scale pilot certification and maintenance capability. Large events and state-led summits in 2024 highlighted both the demand pipeline and the governments intent to create jobs and skills pathways.

Key applications driving adoption

• Agriculture: precision spraying, crop health mapping and targeted inputs are rapidly commercialising and are expected to remain a top-demand sector.

• Logistics & healthcare: last-mile delivery pilots (medicines, blood, emergency supplies) continue to scale in remote geographies.

• Infrastructure & geospatial: Drones provide centimetre-level mapping for surveying, linear infrastructure inspection (such as power lines and pipelines), and urban planning, often outperforming satellite products in terms of resolution and timeliness. Railways & highways (track monitoring, bridge inspection). Oil & gas pipelines (leak detection, corrosion monitoring). Construction projects - progress monitoring, volumetric analysis, and safety audits.

• Defense & security remains a structural demand driver for platforms and autonomy capabilities. Surveillance & reconnaissance (border monitoring, coastal security, anti-infiltration ops). Logistics & supplies for troops in remote/hostile terrains (Himalayan posts, disaster zones). Combat & armed UAVs - for tactical strikes and high-value target engagement. Counter-drone operations - interception and neutralization of hostile drones.

• Environmental & Scientific Applications : Forest & wildlife monitoring (poaching control, habitat mapping). Air pollution monitoring in urban areas. Cloud seeding & weather modification trials (e.g., Maharashtra, Karnataka). River & water resource management (illegal sand mining detection, water quality monitoring).Law Enforcement & Disaster Response : Crowd monitoring during protests, festivals, elections. Traffic management in congested metros. Search & rescue in floods, earthquakes, building collapses. Firefighting support with thermal cameras for hotspot detection.

• Personal / VIP Security : Perimeter monitoring around residences, estates, or temporary VIP stays. Escort & convoy surveillance - drones providing aerial overwatch for motorcades. Crowd monitoring at events - spotting potential threats in large gatherings. Pre-event venue scans - thermal/zoom payloads to detect suspicious activity before arrival. Quick response tracking - following intruders/vehicles until ground teams intercept. Counter-drone protection - identifying/neutralizing hostile UAVs targeting VIPs.

• Private Property Security (Homes, Farms, Estates, Industrial Assets): Automated patrols - drones on scheduled routes covering large areas, reducing reliance on guards. Intrusion detection – real time alerts for fence breaches, motion in restricted zones. Thermal/night vision surveillance - catching movement at night or in poorly lit areas. Incident verification - rapid aerial response to alarms (faster than guard deployment). Perimeter mapping & blind-spot coverage - supplementing CCTV with aerial angles. Asset monitoring - warehouses, solar farms, mines, or luxury estates for theft prevention. Emergency response - guiding security/medical teams with live video during incidents.

• Waste management : Landfill monitoring & volumetric analysis - measure daily/weekly accumulation, track capacity, and optimize landfill lifespan. Illegal dumping detection - aerial surveillance of open plots, water bodies, and highways to spot unauthorized dumping sites. Waste segregation monitoring - identify hotspots for mixed waste, track compliance with segregation rules at source. Route optimization for waste collection - capture aerial data to plan efficient garbage truck collection routes and reduce fuel/time costs. Construction & demolition (C&D) waste tracking - monitor large projects for debris disposal compliance. Leachate & pollution detection - use thermal/multispectral sensors to identify leaks, burning, or contamination from waste sites. Smart city waste audits - create 3D maps of bins, collection points, and dumpsites to aid municipal dashboards. Disaster waste management

- assess debris spread in floods, earthquakes, or cyclones for faster cleanup planning. Worker safety

- replace manual inspections of hazardous dumps with aerial monitoring. Community awareness

- generate visual data (beforeafter images, videos) to improve citizen engagement and compliance.

• Emerging Applications: Drone taxis & passenger UAV concepts (longer horizon). Drone-based 5G network relays / communication in no-signal areas. Cinematography, weddings, sports, media production (fast-growing but niche vs industrial).

Government Initiatives and Policy Support

The governments proactive policy framework is the primary catalyst for this explosive growth.

• Operation Sindoor post actions:

Rs. 40,000 crore emergency procurement envelope : In May 2025, the Defence Acquisition Council granted emergency procurement powers to the Army, Navy, and Air Force, enabling fast-track acquisition of drones (surveillance, kamikaze/loitering munitions) and related systems. These powers include the ability to contract and acquire within stipulated timelines—authorities granted include a cap of 15% of the overall defence budget, with contract finalization within 40 days and delivery within one year.

• Long-term CapEx Assurance:

The emergency procurement accounts for a sizable portion of defence spending. However, officials expect these allocations to be protected when revised estimates are presented. The Ministry of Finance has assured there will be no constraints on the target Rs. 1.8 lakh crore capex budget for the fiscal, even if further allocations are needed for drone- related requirements.

• Rs. 20,000 crore tri-service MALE UAV proposal : A proposal for the acquisition of 87 medium- altitude long-endurance (MALE) drones, estimated at Rs. 20,000 crore, has been approved in principle. The plan mandates over 60% indigenous content, aiming to strengthen domestic drone production capabilities. Targeted by the IAF and to be discussed at the defence ministry level.

• Production-Linked Incentive (PLI) Scheme: The Union

Budget 2025 underscored the governments commitment by allocating Rs. 57 crore to the PLI scheme for drones, a significant increase from the previous allocation. This is part of a larger Rs. 120 crore outlay aimed at encouraging local manufacturing and innovation.

• Drone Rules, 2021: The Drone Rules, 2021 and their subsequent refinements for 2025 provide a clear regulatory roadmap. A key feature is the "Digital Sky Platform," a single-window portal for all drone-related approvals, and the designation of 90% of Indian airspace as "green zones," which simplifies operations up to 400 feet above ground level.

• Drone Shakti and Namo Drone Didi: The Drone Shakti initiative promotes Drone-as-a- Service (DrAAS) solutions, while the Namo Drone Didi scheme, with its Rs. 1,261 crore allocation, aims to empower women selfhelp groups by training them to use drones in agriculture, demonstrating a strong push for widespread adoption.

• Focus on Deep-Tech: The Union Budget 2025 also highlighted a Rs. 20,000 crore allocation for private-sector R&D over the next six years, with a focus on deep- tech sectors, such as drones and autonomous systems.

• Focus on self-reliance: India is launching a Rs. 2,000 crore (approximately USD 234 million) incentive scheme to boost domestic drone manufacturing for both military and civilian applications, following a recent border conflict in which drones were extensively used. This initiative aims to reduce reliance on imported drone components and promote self-reliance in drone technology.

• State level drones policies formation:

1. Madhya Pradesh - Drone Promotion and Usage Policy 2025 :

1. Madhya Pradesh - Drone Promotion and Usage Policy 2025 Policy framework: In FY 25, Madhya Pradesh launched the Drone Promotion and Usage Policy 2025, aiming to foster a local drone ecosystem with innovative infrastructure and investment. Investment target: The state projects to attract Rs. 370 crore in drone-related investment over five years. Capital investment subsidy: 40% support, capped at Rs. 30 crore. Lease rental reimbursement: 25% support (~ Rs. 5 lakh annually). Stamp duty and registration exemption: 100% reimbursement on leased land. Testing/certification aid: Up to Rs. 5 lakh annually; Rs. 20 lakh ceiling. Patent costs: Rs. 5 lakh (domestic), Rs. 10 lakh (international). R&D grants: Up to Rs. 2 crore per project. Drone schools via PPP: Focused on workforce development. Educational institutions: 50% CAPEX subsidy ( Rs. 25 lakh max). Exhibition/event participation: 50% support ( Rs. 1 lakh domestic, Rs. 2 lakh international). Data infrastructure: A centralized drone data repository aligning with PM Gati Shakti initiative, enabling GIS-based planning and interdepartment data sharing.

2. Andhra Pradesh - Drone Summit & Investments

Amaravati Drone Summit 2024 (Oct 22-23): Organized by the state drone corporation with MoCA and Drone Federation of India. Featured exhibitions, technical workshops, and investment discussions.

Investment and job targets: Aimed to attract Rs. 2,000 crore in investments and generate Rs. 6,000 crore revenue over five years, along with training 20,000 drone pilots and creating ~30,000 jobs. Drone hub planning: The state allocated 300 acres in Kurnool for a drone hub and infrastructure development. MoUs announced: With Quality Council of India (for RPL certification) and IIT Tirupati (for education and training).

3. Odisha - Drone Centres of Excellence

Launch (February 2025): Under SAGY, two Drone Centres of Excellence were established in Kalahandi district to train tribal youth and women in drone technology. Funding model: Supported by MPLADS funds (~ Rs. 10 lakh) and in collaboration with drone startup IG Drones.

4. Karnataka - Surveillance Drones & Training

Deployment in Kalaburagi: Karnataka rolled out AI-enabled surveillance drones (model Nimble-Eye and NS01) to the Kalaburagi police for public safety, crowd & vehicle monitoring, and enhanced responsiveness. Drone training drive: Plans to train 500 local youths in DGCA- certified drone operations, supporting sectors like agriculture, logistics, infrastructure, and disaster management.

5. Maharashtra - Drone Surveys to Curb Illegal Mining

LiDAR drone pilot project launched in Pune district to monitor illegal mining of minor minerals. Drones generate precise volumetric and geo-referenced quarry maps for transparency, revenue protection, and environmental oversight. Initial focus: 97 quarries, with plans to expand.

6. Uttar Pradesh - Agricultural Drone Deployment

Drone spraying project: Launched in six districts (Lucknow, Gorakhpur, Bahraich, Muzaffarnagar, Ghaziabad, Kanpur Nagar) to spray nano-urea and pesticides, modernizing crop protection under schemes like Atmanirbhar Krishak Samanvit Vikas Yojana and Agriculture Infrastructure Fund.

7. Goa - Youth Drone Academy

Exclusive drone academy announced: A dedicated Drone Academy for youth training, offering instruction in piloting, maintenance, and drone applications across industries like agriculture, surveillance, and delivery. Aims to position Goa as a tech-education hub.

Opportunities

• Agriculture & Precision Farming: Agriculture remains the single biggest untapped market for drones in India. By 2030, industry surveys indicate that 40% of drone demand will come from agriculture and precision farming, surpassing even defence. Precision spraying, crop health monitoring, yield estimation and field mapping can significantly increase productivity while reducing resource use. With government subsidies for agricultural drones and initiatives like Kisan Drones, adoption is set to accelerate, particularly in states with high mechanisation potential.

• Geospatial Intelligence & Infrastructure Development: The National Geospatial Mission and policies, such as Operation DRONAGIRI, open up massive avenues for drones in mapping, surveying, and monitoring. Unlike satellites, drones can produce centimetre-level, ortho-rectified maps in real-time, enabling more accurate infrastructure planning, environmental monitoring and smart city projects. With INR 20,000 crore allocated for private- sector-driven R&D in FY2024- 25, autonomous systems and precision mapping solutions are primed for rapid scale.

• Logistics & Last-Mile Delivery: E-commerce, healthcare and industrial logistics are experimenting with Drone-as-a- Service (DrAAS) to overcome last- mile challenges. In healthcare, drones are already transporting medicines, vaccines and blood samples to remote regions, cutting delivery times by over 80%. Large- scale adoption in commercial logistics could reduce congestion, cut emissions and improve delivery economics.

• Defence & Homeland Security: Defence remains a strategic growth driver. Indias heightened focus on indigenous UAV manufacturing — backed by import restrictions on foreign drones — opens opportunities for domestic producers to meet not only defence requirements but also export demands from friendly nations. Surveillance, border monitoring and tactical operations represent steady and high-value contracts.

• Media, Entertainment & Creative Applications: Aerial cinematography, live event coverage, sports analytics, and immersive VR experiences are gaining traction with the advent of cheaper, high-quality drone cameras and improved flight stability. With Indias booming media and sports industries, this niche but lucrative segment offers high-margin business models for drone operators and service providers.

• Exports & Global Market Entry: With strong domestic capabilities and supportive policies, India has the potential to position itself as a global drone hub, especially for low- and mid-range UAVs. Simplifying export regulations and leveraging government-to- government trade initiatives could unlock billions in export revenue by 2030

Challenges & Bottlenecks

• Skilled labour shortage: need for trained remote pilots, maintainers and geospatial analysts remains acute; scaling training and accreditation is essential.

• Data security & governance: Drones collect sensitive imagery and operational data; secure pipelines and clear legal frameworks for storage and use are needed.

• Capital & scale: while innovation funding exists, larger industrial investments and higher incentive envelopes would accelerate local supply chain development.

• Supply Chain & Manufacturing Gaps : Heavy dependence on imports for motors, batteries, avionics, payloads, and sensors. Indigenous component ecosystem (semiconductors, propulsion, composites, Li-ion cells) is still immature. High costs of certification, testing, and compliance for locally made UAVs.

• Market Development Challenges : Agricultural adoption is slow due to high upfront costs, limited rental ecosystems, and farmer awareness gaps. Logistics/ delivery drones face infrastructure, BVLOS (Beyond Visual Line of Sight) restrictions, and insurance hurdles. Defence procurements are lumpy, with long testing and approval cycles despite push for indigenous systems.

• Infrastructure & Ecosystem Bottlenecks : Few certified testing corridors and drone parks (though some states have announced them). Limited drone MRO (maintenance, repair, overhaul) ecosystem, especially for defence- grade UAVs. Weak insurance and financing frameworks for drone leasing, rentals, or services.

• Security & Privacy Concerns : Civilian drone misuse (smuggling, espionage, terrorism) leads to restrictive regulations. Absence of a robust counter-drone framework slows approvals in sensitive zones. Privacy concerns in urban deployments (surveillance, crowd monitoring).

• Export Competitiveness : Indian drones face stiff competition from established global players (China, Israel, Turkey, US). Quality, reliability, and endurance gaps still exist versus international benchmarks.

Overview of the Business

The Company entered the drone industry in 2021 through its wholly- owned subsidiary, NeoSky India Ltd., aiming to capitalise on Indias liberalised Drone Rules, 2021, and the sectors potential to transform industries such as logistics and agriculture. NeoSky, headquartered in Delhi, focuses on developing cutting- edge drone platforms, with Throttle Aerospace Systems (TAS) serving as a key subsidiary.

TAS, based in Bangalore, is a leading manufacturer of enterprise, defence and delivery drones, approved by the Directorate General of Civil Aviation and the Ministry of Defence. In 2021, Rattan India made a strategic investment in Matternet, a US-based leader in urban drone logistics, thereby enhancing its technological capabilities.

NeoSky also offers Drone-as-a- Service for sectors such as agriculture, mining, and surveillance. NeoSky has played a pivotal role in Indias drone industry, deploying surveillance drones in Karnataka and supporting the governments vision to make India a global drone hub by 2030, contributing to economic and technological advancements.

Performance:

During FY 25-26, NeoSky has continued to strengthen its position as a leading integrated drone solutions provider in India, with noteworthy achievements in defence, surveillance, training, and public-private initiatives.

Strengthened Institutional Partnerships: Partnered with the Government of Karnataka to deploy advanced surveillance drones (NS01 & Nimble-i) for police use, with a vision of expanding drone deployment to every police station in the state. Secured tender wins to supply 60 units of Tavas drones—a foldable micro-category drone with advanced features like 6-side obstacle avoidance, swappable payloads, and extended endurance.

Capacity Building & Training Initiatives: Announced a program to train 500 drone pilots in North Karnataka in collaboration with the state government, strengthening the regional drone ecosystem. Partnered with FICCI to empower young women through DGCA-certified drone pilot training, with the first batch successfully completed.

National & Global Event Participation: Served as the official drone partner for World Yoga Day 2025 in Visakhapatnam, attended by 3.2 lakh participants, including the Honourable Prime Minister of India. Deployed surveillance, mapping, and videography drones to support security, monitoring, and event coverage.

Defence & Security Offerings:

Expanded its portfolio of defence- grade drones including FPV drones, weaponized drones, mortar and grenade dropping platforms, and cargo drones with up to 15kg payload capacity. Demonstrated drone capabilities for the Indian Army, paramilitary, and international defence stakeholders (Sri Lankan Army, MoD).

Industry Recognition & Credentials:

Indias first DGCA-approved drone manufacturer with DGCA-certified drones and training programs. Licensed to manufacture defence drones (DIPP approval) and qualified for the Government of Indias PLI scheme.

ISO 9001:2015 and AS9100D certifications, underscoring its quality and aerospace-grade processes.

The Company also developed advanced AI and ML solutions for various applications, including crowd monitoring, vehicle tracking, and fire and smoke detection. It expanded to include number plate recognition and foreign object detection.

A notable development in FY25 was the successful creation of ammunition payload drones, capable of dropping grenades and mortars, as well as weaponised drones designed to carry and trigger an AK-47 from 5-7 km away, which have been deployed with BEL. Urban surveillance capabilities were further enhanced with TAVAS, a new drone equipped with a 6-sided LiDAR system for enhanced collision avoidance.

NeoSky pursued aggressive market expansion and established strong relationships with key defence and government entities. This included successful UAV demonstrations and high-altitude trials with the Indian Army, night surveillance with BSF and deployments for disaster management during the Andhra Pradesh floods, delivering essential supplies. The Company successfully added DRDO as a client, supplying drones to BEL and other PSU customers for surveillance purposes.

NeoSky also significantly expanded its training initiatives, securing tenders from the Government of Karnataka to lead specialised drone skilling programmes for agricultural universities and deploying three drone labs for the Indian Army in the North-East. International engagements saw delegations from Kyrgyzstan and Congo visiting NeoSky for UAV solutions. Domestically, NeoSkys presence was bolstered by deployments for pollution control through Drone-as-a-Service (DaaS) and day and night surveillance at the Maha Kumbh 2025. These efforts underscore NeoSkys rapid growth and strategic positioning in Indias burgeoning drone market.

Competitive Edges:

Advanced Product Portfolio:

NeoSkys offerings cater to diverse sectors, including healthcare logistics and defence and provide a technological edge over competitors with narrower portfolios. Their innovative solutions enable them to address unique industry challenges effectively, ensuring comprehensive support and advanced integration.

Regulatory Approvals:

With certifications from the Directorate General of Civil Aviation and the Ministry of Defence, NeoSkys subsidiary, Throttle Aerospace Systems (TAS), ensures compliance and reliability, enabling access to high- value defence and enterprise contracts.

Strategic Global Partnership:

NeoSkys investment in Matternet, a US-based leader in urban drone logistics, provides access to cutting- edge technology and global best practices, differentiating it from domestic-focused competitors.

Indigenous Manufacturing:

Producing drones with over 75% local content, NeoSky aligns with Indias "Make in India" initiative, thereby reducing costs and enhancing its appeal for government and defence tenders.

Strategy for Growth:

Market Expansion:

The Company plans to deepen its presence in defence and logistics by targeting new state-level contracts, building on its Karnataka surveillance drone deployments and exploring international markets beyond India.

Product Innovation

By investing in R&D, the Company will develop next-generation drones with enhanced AI capabilities and higher payload capacities for applications such as last-mile delivery and precision agriculture, thereby meeting the evolving needs of the industry.

Training and Skilling Initiatives:

Leveraging its long-term DGCA license, NeoSky will scale its drone pilot training programs, targeting rural communities and educational institutions to build a skilled workforce and drive adoption.

Partnership Scaling:

The Company will expand its collaborations with defence contractors and industrial clients, following its successful trials with the Indian Army and Solar Industries, to secure high-value contracts and diversify its revenue streams.

Infrastructure Investment:

The Company will enhance its manufacturing and service facilities to support increased production and Drone-as-a-Service operations, aligning with Indias goal to become a global drone hub by 2030.

Human Resource

The success of Rattanindia Enterprises is fuelled by the expertise, dedication and commitment of its employees. To promote a culture of ongoing learning and growth, the Company has established a comprehensive induction program at all locations, supporting employees at all levels. This is further enhanced by a flexible and standardised upskilling system, keeping the workforce prepared for future challenges.

Ongoing performance evaluations, aligned with key result areas, offer objective feedback to all staff, including senior management. The companys Learning and Development initiatives aim to nurture talent, retain high performers and foster organisational growth. By investing in its team, RattanIndia empowers employees to excel and contribute to the businesss success.

The Company employs a framework of oversight mechanisms to ensure swift corrective measures are taken whenever deviations from established standards occur. Periodic evaluations of internal controls are conducted to assess their efficiency and flexibility, with updates implemented as needed to address changing organisational requirements. Furthermore, the company persistently reviews and updates its systems, procedures and controls to stay aligned with industry benchmarks.

Interna! Control Systems

The Companys internal control system is customised to suit its specific operations and size, effectively supporting various business and departmental activities. It incorporates a compliance management team tasked with ensuring adherence to set policies, standards, procedures and relevant regulations.

Details Of Significant Changes in Financial Ratios

During the Year under review, there were the following changes in Key Financial Ratios on a Consolidated basis: Basis:

Particulars	Numerator/ Denominator	Monday, 31 March 2025	Sunday, 31 March 2024	Variance	Reason for Variance
Current ratio (in times) *	Current assets/ Current liabilities	NA
Debt - equity ratio (in times)	Total debt*/ Shareholders equity	0.96	1.38	-30.43%	Due to decrease in borrowings
Debt service coverage ratio (in times)	Earning available for debt service/ Debt service	0.49	5.24	-90.65%	Due to decrease in borrowings
Inventory turnover ratio (in times)	Cost of goods sold/ Average inventory	6.22	4.70	32.34%	Due to decrease in inventory holding
Return on equity (ROE in percentage)	Net profits/ (loss) after taxes/ Average shareholders equity	9.17%	67.99%	-86.51%	Due to decrease in profits.
Trade receivables turnover ratio (in times)	Revenue/ Average trade receivables	140.94	121.08	16.40%
Trade payable turnover ratio (in times)	Purchase of services and other expenses/ Average trade payables	8.92	7.42	20.22%
Net capital turnover ratio (in times) *	Revenue/ Working capital	NA
Net Profit ratio (in percentage)	Net profit/ (loss)/ Revenue	1.18%	6.86%	-82.80%	Due to decrease in profits.
Return on capital employed (ROCE in percentage)	Earning before interest and tax/ Capital employed	15.37%	34.81%	-55.85%	Due to decrease in profits.

* The Company does not classify assets and liabilities as current and non-current in accordance with Ind AS 1 and hence this ratio is not applicable.

CORPORATE INFORMATION

Board of Directors

Mr. Rajiv Rattan - Chairman (Non-Executive)

Mrs. Anjali Nashier - Co-Chairperson

Mr. Rajesh Kumar - Whole-Time Director

Dr. Virender Singh - Independent Director (w.e.f. September 3, 2024)

Mr. Ajay Kumar Tandon - Independent Director (w.e.f. September 3, 2024)

Mrs. Pritika Poonia - Independent Director

Mr. Jeevagan Narayana Swami Nadar - Independent Director (upto September 25, 2024)

Mr. Sanjiv Chhikara - Independent Director (upto September 25, 2024)

Chief Executive Officer

Mr. Jayant Khosla (upto February 7, 2025)

Chief Financial Officer

Mr. Ashok Kumar Sharma

Company Secretary & Compliance Officer

Mr. Rajesh Arora

Statutory Auditors

Walker Chandiok & Co LLP

Chartered Accountants,

Firm Reg. No. 001076N/N500013

21^st Floor, DLF Square Jacaranda Marg, DLF Phase II,

Gurugram - 122002

Secretarial Auditors

S. Khandelwal & Co.

Company Secretaries E-7/12, Malviya Nagar, New Delhi - 110017

Internal Auditor

Sharma Gopal & Company

Registrar and Transfer Agent KFin Technologies Limited

Selenum Tower-B, Plot No. 31 & 32, Financial District, Gachibowli, Nanakramguda, Serilingampally, Hyderabad - 500032, Telangana

Registered Office

H. No. 51, Village - Hauz Khas, New Delhi - 110016 Website: www.rattanindia.com CIN: L74110DL2010PLC210263 Email id: rel@rattanindia.com

Bankers

HDFC Bank Limited