Rishabh Digha Steel & Allied Products Ltd Management Discussions

INTRODUCTION:

One of the primary forces behind industrialization has been the use of metals. Steel has traditionally occupied a top spot among metals. Steel production and consumption are frequently seen as measures of a countrys economic development because it is both a raw material and an intermediary product. Therefore, it would not be an exaggeration to argue that the steel sector has always been at the forefront of industrial progress and that it is the foundation of any economy. The Indian steel industry is classified into three categories - major producers, main producers, and secondary producers.

India is the worlds second-largest producer of crude steel, with an output of 151.14 MT of crude steel and finished steel production of 145.30 MT in FY25.

Indias domestic steel demand is estimated to grow by 9-10% in FY25 as per ICRA.

Indias steel sector remains de-regulated, with the Government acting as a facilitator through policy support and institutional frameworks to enhance efficiency and growth. Guided by the National Steel Policy 2017 and schemes like the PLI for Specialty Steel, the sector is witnessing capacity expansion and investment momentum, with crude steel capacity reaching 200 MT in 2024-25 and specialty steel output targeted to rise significantly by 2026-27.

The growth in the Indian steel sector has been driven by the domestic availability of raw materials such as iron ore and cost-effective labour. Consequently, the steel sector has been a major contributor to Indias manufacturing output.

The Indian steel industry is modern, with state-of-the-art steel mills. It has always strived for continuous modernisation of older plants and up-gradation to higher energy efficiency levels.

According to a Deloitte report the demand for steel in India is projected to grow significantly over the next decade, with annual growth rates expected to range from 5% to 7.3%.

Source: www.ibef.org

BUSINESS OVERVIEW:

Rishabh Digha Steel & Allied Products Ltd. with you valuable raw material you can be best rest assured that your material is in safe and competent hands. With ever rising steel prices, we understand how precious raw material is to your organization. Faulty processing, not within acceptable tolerances, can play havoc with your profits, negating all efforts at minimizing costs, without your knowledge.

The company has discontinued its job-work activity since 01st October, 2020 majorly due to the COVID-19 impact. As per Ind AS 105, a discontinued operation of an entity is the operation which has been disposed off or has been classified as held for sale. As the management does not have committed plan to sale and the sale cannot be completed within one year, the operations and its assets are not classified as Discontinued Operations or Held For sale. The management is considering various restructuring plans for the company.

FINANCIAL HIGHLIGHTS:

• Paid up Share Capital of the Company as on 31 March 2026, stands at 5,48,64,000 divided into 54,86,400 number of equity Shares of Rs. 10/- each fully -paid up.

• Income from operation stood at Rs. 98.03 Lakhs for fiscal 2026.

• Profit/Loss before Taxes of fiscal 2026 was Rs. 60.27 Lakhs.

• Basic Earnings per Share for fiscal 2026 was Rs 67.94.

• Net Worth of the company stood at Rs. 1843.27 Lakhs as on March 2026.

MARKET SIZE

India is the worlds second-largest producer of crude steel, with an output of 151.14 MT of crude steel and 145.30 MT of finished steel in FY25. In FY26 (April-February), crude steel production in India stood at 153.6 MT and finished steel production at 146.8 MT, while the consumption of finished steel reached 147.7 MT. For FY25, consumption stood higher at 150.23 MT. The per-capita consumption of steel touched 100 kgs in FY26 (April-August 2025), with the National Steel Policy targeting 160 kgs by FY31.

As of FY25, Indias steel production capacity had increased to 200.33 MT and is projected to reach 300 MT by FY30. Secondary steel plants, including MSMEs, accounted for 47% of crude steel capacity in FY25. India also holds vast iron ore reserves, with the potential to produce 700 MT annually, making it the second-largest producer globally. In FY26 (April-February 2026), steel trade turned favourable, with India emerging as a net exporter with a surplus of 0.40 MT, compared with a net import position in FY25. The top five exported products during FY26 (April-February) were HR coils/strips, pipes, GP/GC sheets and coils, bars & rods, and CR coils/sheets, with HR coils/ strips emerging as the leading export category, while GP/GC sheets and coils recorded a decline in exports.

In January 2026, it was reported that India will host Bharat Steel 2026 in New Delhi, highlighting the countrys growing focus on green steelmaking, resilient supply chains, and advanced technologies. The event is expected to attract global industry leaders and investors, reflecting strong international interest in Indias steel sector. This development underscores the sectors positive outlook, supported by rising demand, sustainability initiatives, and ambitious capacity expansion targets, positioning India as a key global steel producer.

On December 8, 2025, Indias bullet train project is significantly boosting the steel industry through large- scale infrastructure development. The project involves the construction of massive steel bridges and complex tunnel systems, highlighting increased demand for advanced steel and engineering capabilities. These developments reflect Indias push toward world-class infrastructure, with steel playing a crucial role in enabling high-speed rail, smart city integration, and modern transport networks positioning the country for accelerated industrial and technological growth.

In November 2025, Indias steel sector entered a strong growth phase, with demand expected to rise by around 9% in 2025-26, driven by robust infrastructure development, construction activity and expanding manufacturing. Increasing investments, government-led projects and rising consumption across sectors are positioning India as one of the fastest-growing steel markets globally, indicating a positive outlook with sustained momentum and new growth opportunities for the industry.

On August 18, 2025, JSW Steel and South Koreas POSCO signed a non-binding Heads of Agreement to explore a 6 MTPA integrated steel plant in India through a 50:50 joint venture, with Odisha among the locations under study. In August 2025, JSW Steel and Japans JFE Steel announced plans to jointly invest Rs. 5,845 crore (US$ 682 million) to expand cold-rolled grain-oriented electrical steel (CRGO) capacity to 3,50,000 TPA by FY28, scaling up operations at Nashik and Vijayanagar. Earlier, on July 7, 2025, Tata Steel signed an MoU with Australias InQuik Group to bring modular bridge construction technology to India, enabling cost- effective and climate-resilient infrastructure.

In February 2025, the Bengal Global Business Summit saw nearly 50% of Jharkhands Rs. 26,000 crore (US$ 3.02 billion) investment proposals directed towards steel. Around the same time, JSW Group unveiled a massive Rs. 1,00,000 crore (US$ 11.60 billion) investment to set up a 25 MT steel plant in Gadchiroli, Maharashtra, expected to be the worlds largest and most eco-friendly steel facility. On March 28, 2025, AM/NS India secured 890 hectares of land in Andhra Pradesh for a 7 MTPA integrated steel mill to meet rising domestic demand. India and Japan also held their third Steel Dialogue in February 2025, highlighting green steel efforts, policy initiatives, and trade opportunities.

Government support continues to be a cornerstone for growth. The National Steel Policy 2017 aims to raise per-capita steel consumption to 160 kgs by FY31 and promotes at least 15% value addition in notified products. The PLI scheme for specialty steel, in its second round, has secured commitments of Rs. 17,000 crore (US$ 1.98 billion) from 25 companies, targeting high-end steel applications in automobiles, transformers, and other sectors. The sector benefits further from the new Vehicle Scrappage Policy, which will increase scrap availability and stabilize prices. Between April 2000 and June 2025, Indian metallurgical industries attracted Rs. 1,60,000 crore (US$ 18.67 billion) in FDI, supported by 100% FDI allowance under the automatic route.

Indias steel industry stands at the forefront of industrial transformation, supported by strong domestic demand, global collaborations, and forward-looking policy initiatives. With large-scale investments, growing exports, and an expanding production base, the sector is poised to achieve its ambitious targets under the National Steel Policy. Continued focus on green technologies, value-added products, and infrastructure development will further enhance competitiveness and sustainability. Looking ahead, India is set to emerge as a global steel powerhouse, driving innovation, job creation, and resilient economic growth in the coming decade.

OUR COMPETITIVE STRENGTHS:

a) Dynamic Management:

The Company is led by professional management team comprising experienced leader and young brigade of technocrats. The promoters are ably supported by skilled and professional managerial team. This dynamic team has been instrumental in creating best-in-class technology and processes to enhance customer experiences and lead to overall growth of the company.

b) Diverse Offerings:

Alacrity Securities Limited offerings comprise share broking and trading servicesin equity, futures & options, and currency derivatives, among others. It provides mutual fund advisory services to clients andhas ventured into providing comprehensive wealth management services to the client. The Company has affiliated with one of the best Wealth Management Companies. This diversified range of financial services enables it to cater to varied requirements of its customers.

c) Technology Competence:

The company has deployed state-of-the-art technology, adopted automated solutions, and digitized processes to ensure seamless services and high operational efficiency Its automated trading strategy based on algorithmic and quantitative trading solutions gives it a competitive edge in the marketplace.

d) Strong Customer Relationships:

Customer service and experience is a top priority at the Company. The Company provides hassle-free and seamless services to the Customers. Its relentless focus on client coverage, timely resolution of customer complaints, and customer satisfaction have helped it forge strong relationships with its customers.

GROWTH STRATEGIES:

a) Strengthening Business:

The Company aims to capitalize on its existing strengths, while at the same time consolidate its presence in business segments. This will enable the Company to increase its market share and achieve greater economies of scale.

b) Enhancing Client Base:

Alacrity Securities Limited enjoys an unblemished reputation in market and strong relationships with all its stakeholders, which has been at the cornerstone of its continued success. The Company intends to bank on this strong reputation and goodwill to increase its clientele and grow business sustainably with diversified products and services.

c) Harnessing Technology:

Technology is an important tool in the creation of consistent business value. The Companys robust technology-based trading platforms have resulted in increased speed and convenience leading to superior customer experience.

d) Empowering Human Capital:

Recognizing that people are the most important asset of an organization, the Company offers a conducive work environment and career opportunities to motivate its employees encouraging them to deliver improved services to clients.

RISKS AND CONCERNS:

It is essential to correctly assess the risk in each segment so that the risk is mitigated before it becomes a possible threat. General risk segments are statutory compliances, economy, financials, Government policies, market related, operational, products and technology etc., The management has a rapid review of likely risk areas with the objective to define a framework for identification, evaluation and mitigating the risk in the decision-making process and to encourage proactive management and not reactive management.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has robust internal controls systems (including Internal Financial Controls) that facilitates efficiency, reliability and completeness of accounting records and timely preparation of reliable financial and management information. The internal control system ensures compliance with all applicable laws and regulations facilitates optimum utilization of resources and protect the Companys assets and investors interests. The Companys well-defined organizational structure, documented policy guidelines, defined authority matrix and internal controls ensure efficiency of operations, compliance with internal policies and applicable laws and regulations as well as protection of resources. The Audit Committee of the Board regularly reviews significant audit findings of the Internal Audit system covering operational, financial and other areas.

RISK MANAGEMENT:

Risk Management is an ongoing process. Effective risk management is therefore critical to any organizational success. Globalization with increasing integration of markets, newer and more complex products and transactions and an increasingly stringent regulatory framework has exposed organizations to and integrated approach to risk management. Timely and effective risk management is of prime importance to our continued success. The sustainability of the business is derived from the following:

• Identification of the diverse risks faced by the Company.

• The evolution of appropriate systems and processes to measure and monitor them.

• Risk Management through appropriate mitigation strategies within the policy framework.

• Reporting these risk mitigation results to the appropriate managerial levels.

CAUTIONARY STATEMENT:

Statements in the Management Discussion & Analysis, describing the Companys objectives, projections and estimates are forward looking statement and progressive within the meaning of applicable laws & regulations. Actual result may vary from those expressed or implied. Important developments that could affect the Companys operations are significant changes in political and economic environment in India, tax laws, exchange rate fluctuation and related factors.