Roto Pumps Ltd Management Discussions

FOR THE FINANCIAL YEAR ENDED MARCH 31,2026

ECONOMIC OVERVIEW Global economy

The global economy registered a growth rate of 3.5% in 2025, similar to the 3.5% achieved in 2024. This performance came despite geopolitical uncertainties, inflationary trends, supply chain realignments and changing trade dynamics. Advanced economies grew by 1.9%, while emerging markets and developing economies recorded a stronger growth of 4.5% during the year.

The global economy is projected to grow by 3.0% in 2026. Growth in advanced economies is expected to moderate to 1.7%, while emerging markets and developing economies are projected to grow by 3.8%. In 2027, emerging markets and developing economies are forecast to grow by 4.5%, compared with 1.8% in advanced economies, resulting in an overall global growth rate of 3.4%. (Source: International Monetary Fund, July 2026.)

The global economy continues to face challenges arising from geopolitical uncertainties, inflationary trends, supply chain realignments and changing trade dynamics. Despite these challenges, investments in infrastructure, energy, industrial manufacturing, water treatment and process industries continued to support industrial growth.

Indian economy

The Indian economy is estimated to grow by 7.7% in FY26, compared to 6.5% in FY25, supported by strong consumption, higher investment and easing inflation. A 7.8% growth in the last quarter highlighted a stable domestic demand and investment momentum. The Primary sector has observed 3.2% growth rate mainly driven by the performance of Agriculture and Fishery sectoRs.The Manufacturing, Trade, Repair, Hotels, Transport, Communication & Services related to Broadcasting, Storage and Financial Real Estate & Professional Services sectors have attained double-digit growth in FY26. (Source: Provisional estimates of annual gross domestic product for 2025-26 dated June 5, 2026)

Government initiatives such as Make in India, Atmanirbhar Bharat, PM Gati Shakti, the National Infrastructure Pipeline, the Jal Jeevan Mission, and the Smart Cities Mission continue to drive investments in manufacturing, infrastructure, water management, and urban development, thereby creating significant long-term growth opportunities for engineering and industrial equipment manufacturers.

According to the Reserve Bank of Indias Monetary Policy Statement (June 2026), Indias GDP is projected to grow by 6.6% during FY 202627. The growth outlook continues to be supported by resilient domestic demand, healthy balance sheets of banks and corporates, and sustained investment activity. However, the Reserve Bank has highlighted that global geopolitical tensions, trade policy uncertainties, commodity price volatility, and weather-related risks remain key downside risks to the economic outlook.

INDUSTRY OVERVIEW

Global Industry

The global industrial pump industry is a cornerstone of critical sectors such as oil and gas, water and wastewater treatment, chemicals, power generation, and manufacturing. In 2024, the market was valued at around USD 71.3 billion and is projected to reach nearly USD 112.1

billion by 2033, reflecting a healthy CAGR of abouRs.4.9%.

Growth is supported by rising investments in infrastructure, increasing demand for efficient fluid-handling systems, and the adoption of smart pumps with IoT-enabled monitoring and predictive maintenance features. These innovations help industries improve reliability, reduce downtime, and achieve higher energy efficiency.

Product Type Insights

By product type, the market is segmented into centrifugal pumps and positive displacement (PD) pumps. Centrifugal pumps dominate, accounting for around 65-70% of global revenue (USD 42-46 billion in 2024), due to their wide use in water supply, wastewater treatment, and industrial processing. Positive displacement pumps are valued at about USD 26.1 billion in 2024, representing roughly 30-35% of the market, with strong demand from oil & gas, chemicals, pharmaceuticals, and the food & beverage industries where precise dosing and viscous fluid handling are critical.

Application Insights

The global pump industry is witnessing sustained demand across key sectors, with growth driven by both traditional industries and emerging applications. Water and wastewater treatment continue to dominate, holding over 20% of the market and expanding aRs.5-6% CAGR, supported by stricter environmental regulations and urban infrastructure development. The oil and gas sector, which accounts for more than one-fifth of global demand, is projected to grow at around 4-5% CAGR, backed by upstream exploration, refinery upgrades, and LNG capacity additions.

The chemical and pharmaceutical industries are also key growth drivers, expected to expand at nearly 5% CAGR, owing to the rising demand for specialty chemicals and accurate dosing applications. Similarly, the food and beverage industry expected to grow at close to 6% CAGR, fuelled by packaged food consumption and hygiene-focused processing requirements. In addition, power generation, including renewable energy applications, is advancing at abouRs.4% CAGR, with pumps playing a vital role in cooling, hydrogen infrastructure, and sustainable energy systems. The Biogas industry is expected to grow at a CAGR of around 5-6% over the coming years.

Together, these diverse applications underline the industrys balanced growth trajectory, where traditional segments like oil & gas and water treatment are complemented by faster-expanding sectors such as food & beverages, pharmaceuticals, and renewables.

Regional Insights

The Asia Pacific pumps market is projected to witness the fastest growth till 2030, supported by rapid industrialization, infrastructure expansion, and rising demand from agriculture, petrochemicals, and water management. China remains the largest growth hub, driven by capacity expansions in the chemical, petrochemical, and construction sectors under favourable government policies. Australia is also contributing strongly within the region, with mining activity, water and wastewater treatment projects and energy infrastructure investments boosting demand. Malaysia, Thailand, and Singapore are seeing healthy growth, supported by expanding manufacturing bases, industrial investments, and government initiatives in water treatment. Singapore is placing strong emphasis on smart water management and desalination technologies, while Malaysia and Thailand are witnessing demand from chemicals, construction, and agriculture. The MENA region, often grouped under Asia in global market analysis, represents another major demand centre, with pump consumption driven by large-scale investments in oil & gas, petrochemicals, desalination plants, and infrastructure projects. A Strong government focus on water and wastewater management, coupled with economic diversification programs, is expected to further accelerate pump adoption across MENA.

In Europe, growth is supported by offshore exploration activities, stringent environmental regulations, and the rising demand for municipal and industrial water treatment. Germany continues to lead with heavy investments in wastewater treatment and construction, while the UK is progressing through infrastructure upgrades, renewable energy expansion, and adoption of energy-efficient pumping solutions.

North America is expected to record steady growth, supported by oil & gas exploration, shale production, and modernization of water and wastewater treatment facilities. Rising adoption of smart and energy- efficient pumps is further strengthening regional demand.

In South America and Latin America, growth is being fuelled by investments in mining, oil & gas, agriculture, and infrastructure expansion. Increasing irrigation requirements and water management projects are creating additional opportunities for pumps in the region.

The Sub-Saharan Africa market is projected to expand steadily, supported by investments in water supply, irrigation, mining and power generation projects. Rapid urbanization and government-led initiatives to improve access to clean water and sanitation are also expected to drive demand, particularly for centrifugal and submersible pumps.

Indian Industry

The Indian pump market was valued at USD 3.9 billion in 2024 and is expected to reach USD 5.7 billion by 2033, growing at a compound annual growth rate (CAGR) of around 4.5% during 2024-2033. Approximately 16% of Indias pump manufacturing output is export- oriented, and this share is projected to expand further as Indian manufacturers strengthen their global presence.

The positive displacement (PD) pumps segment accounts for abouRs.5% of the total market and finds applications across water and wastewater, chemicals, oil & gas, and power generation. With Indias crude oil refining capacity on the rise and growing investments in midstream and downstream oil & gas infrastructure, the demand for PD pumps is expected to increase. Additionally, technological advancements that have made deep-water and ultra-deep-water exploration more feasible and cost-effective are likely to drive greater oil production, creating further opportunities for pump deployment till 2033.

The oil & gas sector is anticipated to witness significant growth in pump adoption, driven by declining output from mature fields, increasing investment in new exploration, and expansion in refining and petrochemical projects. Similarly, water & wastewater management, power generation, and metals & mining continue to be among the largest end-use industries for pumps in India. The biogas industry is also expected to play an increasingly important role in driving demand. In addition, emerging sectors such as lithium extraction and refining, as well as the semiconductor industry, are likely to become vital contributors to future growth.

Competitive pricing, manufacturing scalability, and the availability of skilled labour remain strong drivers of Indias pump market competitiveness. At the same time, the introduction of intelligent and smart pump systems-capable of monitoring, controlling, and optimizing fluid flow while offering failure tolerance-will help reduce total cost of ownership, creating attractive opportunities for manufactureRs.A growing emphasis on after-sales services is further enabling vendors to strengthen long-term customer relationships.

Indian pump manufacturers are also increasingly focusing on strategic alliances, joint ventures, and technological collaborations with global companies to enhance product quality, expand their footprint in overseas markets, and meet the rising domestic demand for advanced pumping solutions.

FINANCIAL STATEMENTS

The financial statements of your Company have been prepared in accordance with the Companies Act, 2013 and the applicable Indian Accounting Standards (Ind-AS) notified by the Ministry of Corporate Affairs, with no material departures from the prescribed norms. The Management accepts responsibility for the integrity and fairness of these financial statements and confirms that estimates and judgments were applied prudently to present a true and fair view of your Companys affairs.

Resources Allocation:

Non-current Assets

Non-current assets of your Company at March 31,2026 were Rs. 15,323.88 lakhs against Rs. 14,014.96 lakhs as of March 31, 2025. Composition of non-current assets as of March 31, 2026 compared to March 31, 2025 was as under-

Property, plant and equipment

Property, plant and equipment of your Company as of March 31,2026 were Rs. 7,233.28 lakhs compared with Rs. 8,033.93 lakhs on March 31, 2025 representing a net decrease of 9.97%. The net decrease has been primarily on account of depreciation and amortization during the year.

Capital Work-in-progress

Capital work in progress of your Company as of March 31, 2026 was Rs. 1,766.43 lakhs compared with Rs. 208.20 lakhs on March 31, 2025. The net increase has been primarily attributable to the new factory building under construction and the new plant and machinery under installation and commissioning.

Right-of-use-Assets

Right-of-use-Assets of your Company as of March 31, 2026 was Rs. 2,801.66 lakhs compared with Rs. 2,866.87 lakhs on March 31,2025. The net decrease has been mainly due to amortization.

Other Intangible assets

Other intangible assets of your Company comprise of computer software, technical drawings, trademarks and patent. Other intangible assets of the Company as of March 31,2026 were Rs. 158.90 lakhs against Rs. 173.86 lakhs at March 31, 2025. The net decrease was on account of amortization.

Investment in Subsidiaries

Investment in Subsidiaries of your Company as of March 31, 2026 was Rs. 2,453,.47 lakhs against Rs. 1,963.47 as of March 31, 2025. The increase in investment has been on account of further investment of Rs. 490.00 lakhs in Roto Energy Systems Ltd, wholly owned subsidiary company.

Other Financial Assets

Other Financial Assets of your company comprising of fixed deposit as margin money as of March 31, 2026 was Rs. 50.00 lakhs against Rs. 50.00 as of March 31,2025.

Deferred tax assets (net)

Deferred tax assets (net) of your Company as of March 31, 2026 were Rs. 137.76 lakhs against Rs. 81.09 lakhs as of March 31, 2024. The net increase was primarily attributable to the recognition of deferred tax assets arising from higher provisions for gratuity and leave liabilities following the implementation of the new Labour Code, higher depreciation under the Companies Act, increased expected credit loss provisions, and the mark-to-market (MTM) fair valuation of derivative instruments.

Other Non-current Assets

Other Non-current Assets of your Company comprising of capital advances as of March 31, 2026 were Rs. 722.38 lakhs against Rs. 637.54 lakhs as of March 31, 2025. The increase was mainly due to higher capital advances paid for construction of factory building and plant and machinery.

Current Assets

Total current assets of your Company as of March 31, 2026 were Rs. 17,266.57 lakhs against Rs. 16,100.12 lakhs as of March 31, 2025. Composition of the Current assets as of March 31, 2026 compared to March 31,2025 was as under-

Inventories

Inventories of your Company as of March 31, 2026 were Rs. 5,203.58 lakhs against Rs. 4,054.83 lakhs as of March 31, 2025 representing a decrease of 28.33%. The increase was primarily attributable to delays in the execution of project orders, inventory held up pending customer approvals, and disruptions in global supply chains and material deliveries arising from geopolitical tensions.

Financial assets

Financial assets comprise of trade receivables, cash & cash equivalents, other bank balances, loans and other financial assets. Financial assets of your Company as of March 31, 2026 were Rs. 9,395.45 lakhs against Rs. 9,622.55 lakhs as of March 31, 2025 representing a decrease of 2.36%. The net decrease was primarily attributable to the reduction in cash and cash equivalents due to the utilisation of funds towards the acquisition of property, plant and equipment and the construction of the factory building.

Other current assets

Other current assets of your Company as of March 31, 2026 were Rs. 2,667.54 lakhs against Rs. 2,422.74 lakhs as of March 31,2025.

Resources:

Equity

Total equity of your Company as of March 31,2026 was Rs.22,051.52 lakhs as compared to Rs. 22,051.52 lakhs as of March 31, 2025 representing a net increase of 7.57%. Composition of equity as of March 31, 2026 as compared to at March 31,2025 was as under-

Share capital

Share capital of your Company as of March 31, 2026 were Rs. 1,884.46 lakhs as compared to Rs. 628.15 as of March 31, 2025. The increase has been on account of issue of bonus equity shares during the year.

Other equity

Other equity of your Company comprises of securities premium, general reserve and retained earnings, which was Rs. 21,837.23 lakhs as of March 31, 2026 compared with Rs. 21,423.37 lakhs as of March 31, 2025 on account of retained earnings for the financial year.

NON-CURRENT LIABILITIES

Non-current liabilities of your Company as of March 31, 2026 were Rs. 1,049,.49 lakhs as compared to Rs. 1,239.05 lakhs as of March 31, 2025. Composition of Non-current liabilities as of March 31, 2026 as compared to at March 31,2025 was as under-

Financial liabilities

Financial liabilities of your Company comprise of long-term borrowings and lease liabilities, as of March 31,2026, the financial liabilities were RS.855.76 lakhs against RS.1,140.97 lakhs as of March 31,2025. The decrease was primarily attributable to the repayment of long-term borrowings and lease liabilities.

Provisions

Provisions of your Company, comprises of provisions for employee benefits, as of March 31, 2026 were RS.193.73 lakhs against RS.98.08 lakhs as of March 31, 2025. The increase was primarily attributable to higher provisions for gratuity and leave liabilities arising from the implementation of the new Labour Code.

Current Liabilities

Current liabilities as of March 31, 2026 were RS.7,819.17 lakhs as compared to RS.6,824.51 lakhs as of March 31,2026. The composition of the current liabilities as of March 31,2026 compared to as of March 31, 2025 was as under-

Financial liabilities

Financial liabilities of your Company, comprises of short-term borrowings, trade payables and other financial liabilities were RS.4,329.21 lakhs as of March 31,2026 against RS.4,281.40 lakhs as of March 31, 2025. The net increase was primarily attributable to higher trade payables resulting from an increase in procurement activities towards the end of the year.

Other current liabilities

Other current liabilities of your Company, comprises of creditors for capital goods, advances from customers, taxes payable and dividend payable were RS.1,596.84 lakhs as of March 31,2026 against RS.1,220.82 lakhs as of March 31,2025. The net increase was mainly on account of an increase in advances received from customers.

Provisions

Provisions of your Company, comprises of short-term provisions for employee benefits, warranty and other provisions were RS.185.34 lakhs as of March 31, 2026 against RS.281.20 lakhs as of March 31, 2025. The net decrease in short-term provisions was mainly on account of the settlement of outstanding provisions.

Current tax liabilities

Current tax liabilities (Net) of your Company, comprises of provisions for income tax, were RS.1,707.78 lakhs as of March 31, 2026 against RS.1,041.09 lakhs as of March 31,2025. The increase has been on account of tax expenses for prior period.

The management believes that your Companys liquidity and capital resources would be adequate to meet its expected working capital needs and other anticipated cash requirements.

FINANCIAL AND OPERATIONAL PERFORMANCE:

The principal source of your Companys revenue is the sale of pumps, spares, and retrofit parts. Over the years, your Company has built a strong legacy of designing and manufacturing technologically advanced and reliable products, earning the trust of customers across geographies. The product portfolio comprises a comprehensive range of positive displacement pumps designed to serve a wide spectrum of industries, including oil & gas, biogas, chemicals, water and wastewater management, food processing, mining, and various municipal applications. Aligned with its long-term vision, your Company is steadily transforming into a fluid equipment solutions provider, offering value-added technologies and customized solutions to meet the growing and diverse needs of its customers.

Standalone Financial Performance

The standalone financial performance of your company during 202526 as compared to 2024-25 has been as under-

Your Companys Total Income for the financial year 2025-26 was RS.22,756.45 lakhs, as compared to RS.24,375.98 lakhs in 2024-25, reflecting a decline of 6.64%. Revenue from operations during the year was RS.22,288.49 lakhs, as compared to RS.24,036.81 lakhs in the previous year, representing a decline of 7.27%. Other income during the year was RS.467.96 lakhs, as compared to RS.339.17 lakhs in the previous year.

Revenue from operations during the financial year 2025-26 were impacted by uncertainty arising from the US trade tariff measures, subdued domestic project business, organisational restructuring at the Companys overseas subsidiaries in the UK, Australia and Germany, lower-than-expected growth in the downhole pumps and solar pumping segments, the operational disruption at RPSA following the embezzlement incident, and geopolitical tensions in the Middle East, which adversely affected business activity and customer decision making.

Your Company recorded a Profit before Tax of RS.3,219.94 lakhs during the financial year 2025-26 compared with RS.3,977.88 lakhs in 2024-25.

Your Company recorded a Profit after Tax of RS.2,132.82 lakhs during the year 2024-25 compared with RS.3,078.52 lakhs in 2024-25.

Profitability during the financial year 2025-26 was adversely affected by lower sales volumes, continued business development expenses in the downhole pumps and solar pumping segments despite lower revenues, operational disruption at RPSA, and increased costs arising from supply chain disruptions, higher freight, fuel and commodity prices, and pricing pressures on raw materials and bought-out items due to geopolitical developments.

REVENUE FROM OPERATIONS

Your Companys income from operations comprises domestic and export sales. Revenue from operations during the year was RS.22,288.49 lakhs, as compared to RS.24,036.81 lakhs in the previous year. The product-wise revenue from operations, viz. Pumps, Spares, and Service Income, was as under -

Sale of pumps during the year was RS.11,362.09 lakhs, as compared to RS.13,356.61 lakhs in the previous year, while the sale of spares stood at RS.10,680.58 lakhs, as compared to RS.10,461.04 lakhs in the previous year. Service income was RS.82.10 lakhs, against RS.30.10 lakhs in the previous year. Other operating revenue, mainly comprising the sale of scrap materials, was RS.163.72 lakhs, as compared to RS.189.06 lakhs in the previous year.

The composition of revenue from domestic and export sales during the financial year 2025-26, as compared to the financial year 2024-25, was as under:

Revenue from Domestic Sales

Revenue from Domestic sales during the financial year were recorded at RS.8,274.05 lakhs against RS.9,549.86 lakhs, which represent a decline of 13.36%. Composition of Domestic sales during the year as compared to the previous year was as follows-

Revenue from Sale of Pumps during the year was RS.4,901.77 lakhs against RS.6,308.78 lakhs during the previous year. Sale of Spares during the year was RS.3,134.84 lakhs against RS.3,031.91 lakhs during the previous year. Service income during the year was RS.73.72 lakhs against RS.22.00 lakhs during the previous year. Other operating revenue mainly comprises of income from sales of scrap and wastage was RS.163.72 lakhs as compared to RS.189.06 lakhs during the previous year.

Revenue from Export Sales

Revenue from Export Sales by product

Revenue from Exports Sales during the year were RS.14,014.44 lakhs against RS.14,486.94 lakhs during the previous year, which represents a decline of 3.26%. Composition of Export Sales during the year as compared to the previous year was as follows:

Revenue from Sale of Pumps during the year was RS.6,460.32 lakhs against RS.7,047.83 lakhs during the previous year. Sales of Spares during the year were RS.7545.74 lakhs against RS.7,429.12 lakhs during the previous year. Service income during the year was RS.8.38 lakhs against RS.8.10 lakhs during the previous year.

Export Sales by Centres

Your Company executes exports sales from three Centres viz. Direct Export from India, Sales from Warehouse and Marketing Offices in Australia and United Kingdom. Export Sales from these Centres during the year as compared to the previous year were as follows-

Direct Export

Direct export sales during the year were Rs 6,099.96 lakhs against Rs 6,640.64 lakhs in the previous year which represents a decline of 8.14%.

Sales from Australia Branch

Sales from Australia were Rs 3,575.83 lakhs as compared to Rs 4,023.37 lakhs during the previous year, which has been lower by 11.12%.

Sales from U.K. Branch

Sales from United Kingdom were Rs 4,338.65 lakhs against Rs 3,821.04 lakhs during the previous year, which was higher by 13.55%.

KEY FINANCIAL RATIOS

Key financial ratios for the financial year 2025-26 as compared to the previous financial year were as under. Clarifications on the changes are also given.

Particulars	2025-26	2024-25	Change %	Clarification in change in is more thaRs.25%
Debtors turnover (days)	110	91	21.13	Higher debtors have been mainly due to delay receipt payment from marine Sector Customer and major project business. The increase in inventory was primarily due to delays in the execution of project
Inventory Turnover (days)	77	63	22.34	orders, inventory held up pending customer approvals, and disruptions in global supply chains and material deliveries caused by geopolitical tensions.
Interest coverage ratio (times)	21	21	-	-
Current ratio (times)	2.21	2.36	-6.40%	-
Debt equity ratio (times)	0.07	0.11	-36.65%	Decrease working capital facilities and repayment of Term Loans.
Operation profit margin (%)	22.22	24.47	-9.19%	-
Net profit Margin (%)	9.75	12.46	-21.76%	-
Return on Net worth (%)	9.32	14.77	36.89%	Decrease was mainly due to lower profit during the year

HEALTH, SAFETY AND ENVIRONMENT

Your Company remains committed to providing a safe, healthy and environmentally sustainable workplace and continues to maintain certification under the Occupational Health and Safety Management System - ISO 45001:2018 and the Environmental Management System - ISO 14001:2015. The management continuously reviews and strengthens its health, safety and environmental (HSE) practices through regular audits, employee awareness programmes, risk assessments and preventive measures to ensure compliance with applicable statutory and regulatory requirements.

As part of its commitment to sustainability and reduction of its carbon footprint, the Company has installed 1014 KWp rooftop solar power plant for captive consumption, which meets approximately 32% of its annual electricity requirement, thereby contributing to energy conservation and reduction in greenhouse gas emissions. Your Company continues to explore opportunities to enhance the use of renewable energy and improve resource efficiency across its operations.

Employee health and well-being remain integral to the Companys people strategy. Periodic preventive health check-up camps, wellness initiatives, safety awareness programmes and training sessions are organised to promote occupational health and foster a strong safety culture across the organisation.

The Company maintains robust safety systems and emergency preparedness measures at its manufacturing facilities. There were no material health, safety or environmental incidents during the year under review. Further, the Companys manufacturing facilities continue to operate on a zero-liquid-discharge basis, reflecting its commitment

to responsible environmental stewardship and sustainable manufacturing practices.

In compliance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, the Company has prepared and presented its Business Responsibility and Sustainability Report (BRSR), reflecting its commitment to transparency, stakeholder engagement and sustainable long-term value creation.

OPPORTUNITIES AND THREATS

Opportunities

Your Company continues to witness significant growth opportunities driven by increasing global emphasis on environmental sustainability, industrial infrastructure development and technological innovation. Stringent environmental regulations and the growing focus on wastewater treatment are expected to drive sustained demand for efficient and reliable pumping solutions. Emerging economies across Asia, Africa and Latin America present substantial opportunities owing to rising investments in industrial, municipal and infrastructure projects. Further, advancements in digital technologies, including IoT- enabled smart pumps and remote monitoring solutions, offer avenues for product differentiation, enhanced operational efficiency and improved customer value. The expanding renewable energy sector, particularly biogas, biofuels and sludge management applications, is expected to create additional demand for progressive cavity pumps. In addition, the Company continues to explore strategic partnerships, technology collaborations and selective acquisition opportunities to strengthen its product portfolio, expand its geographical presence and accelerate long-term growth.

During the year, your Company introduced its P-Range of Progressive Cavity Pumps, further strengthening its product portfolio with technologically advanced, energy-efficient and customer-centric solutions. The new range offers customers enhanced performance, improved reliability, lower life-cycle costs, easier maintenance and higher operating efficiency across diverse industrial applications. It is expected to strengthen the Companys competitiveness, expand its presence in domestic and international markets, improve manufacturing efficiencies through standardized design, and contribute to sustainable revenue growth and profitability over the medium to long term.

Your Company continued to advance the development of its Downhole Pump range during the year. The products are currently undergoing field trials and validation under actual operating conditions to evaluate their performance, reliability and durability. Upon successful completion of the field trials and commercial launch, the product is expected to expand the Companys presence in the oil and gas sector, provide customers with reliable and cost-effective artificial lift solutions, diversify your Companys product portfolio and create new avenues for domestic and export growth.

Your Companys wholly owned subsidiary continued to strengthen its Solar Pumping Systems portfolio during the year. The solutions are designed to provide customers with reliable, energy-efficient and environmentally friendly pumping systems, while significantly reducing dependence on conventional power sources and operating costs. On domestic front, the increasing adoption of solar-powered pumping solutions under various Government initiatives on providing clean drinking water are expected to create significant growth opportunities for the Company, enhance its presence especially in the water management sectors, and contribute to long-term sustainable growth. On export front, Your Companys products have been well received and the Customers are quite happy with the quality of the products. On international front, your Companys products are well received reflecting their quality, reliability and performance.

Threats

Your Company operates in a highly competitive global market, facing competition from established international manufacturers as well as low-cost producers, particularly from China, which may exert pressure on pricing and operating margins. Volatility in the prices of key raw materials, including steel and elastomers, may adversely impact manufacturing costs and profitability if not adequately mitigated through pricing strategies and supply chain management. As a significant portion of your Companys revenue is derived from exports, fluctuations in foreign exchange rates may affect revenue realization and earnings. Rapid technological advancements and the emergence of alternative pumping technologies could also influence customer preferences and intensify competitive pressures, necessitating continuous investment in product innovation and research and development. Further, any slowdown in global economic activity or industrial capital expenditure may impact demand across key end-user industries, thereby affecting the Companys order inflows and growth prospects.

RISK AND CONCERNS

Global geopolitical and macroeconomic developments continue to present uncertainties for businesses across industries. Ongoing geopolitical conflicts in Eastern Europe and the Middle East, evolving trade policies and tariff measures by major economies, disruptions in global shipping routes, and persistent regional political instability continue to influence international trade, logistics and supply chains. In addition, heightened trade protectionism, changing tariff regimes, elevated interest rates in several advanced economies, and fluctuations in foreign exchange rates continue to impact global economic activity and investment sentiment. Although inflationary pressures have moderated in many economies, growth remains uneven across regions and is subject to downside risks arising from geopolitical developments and changing global trade dynamics.

Your Company has a diversified presence across major international markets and, accordingly, remains exposed to risks arising from geopolitical events, changes in international trade policies, currency volatility, supply chain disruptions and global economic conditions. Further, the increasing focus on environmental, climate-related and sustainability regulations across jurisdictions may require continuous adaptation in product design, manufacturing processes and compliance frameworks. The Company continues to closely monitor these developments, diversify its markets and supply chain, strengthen operational resilience, enhance risk management practices and focus on innovation to mitigate potential adverse impacts and create sustainable long-term value for its stakeholders.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Your Company has established a robust internal control framework commensurate with the nature, size and complexity of its business. The internal control systems are designed to ensure operational efficiency, safeguarding of assets, accuracy and completeness of accounting records, compliance with applicable laws and regulations, adherence to internal policies and procedures, and the reliability and integrity of financial and operational reporting. These controls are periodically reviewed and strengthened to address evolving business requirements and emerging risks.

The Company has substantially implemented an integrated SAP platform across its operations to enhance process standardization, operational efficiency and internal controls. SAP has been successfully implemented across the Companys operations in India and most of its overseas subsidiaries, with the balance overseas locations being integrated in a phased manner. Your Company is also progressively expanding the scope of SAP to cover additional business processes, functional areas and management reporting requirements. Further, implementation of a Customer Relationship Management (CRM) solution is underway to strengthen customer engagement, sales management and business analytics. The integration of SAP and CRM is expected to provide enhanced visibility across the value chain, improve decision-making through real-time information, strengthen governance and create operational synergies across the Group.

Your Companys Internal Audit function, carried out through an independent professional firm, evaluates the adequacy and effectiveness of the internal control systems, risk management processes and governance framework. The observations and recommendations of the Internal Auditors are periodically reviewed by the management, and appropriate corrective actions are implemented. The Audit Committee of the Board reviews the adequacy and effectiveness of the internal financial controls, internal audit findings and compliance framework, and monitors the implementation of corrective actions to ensure continuous improvement in the Companys control environment.

Your Company continues to invest in research and development with a strategic focus on product innovation, technology advancement and process excellence. Its R&D efforts are directed towards enhancing product performance and reliability, developing new products and applications, improving manufacturing processes, optimizing costs, and advancing energy-efficient, digitally enabled and customer-centric pumping solutions to meet the evolving requirements of domestic and international markets.

During the year under review, the Company incurred revenue expenditure of Rs 254.48 lakhs and capital expenditure of Rs 41.47 lakhs totalling to Rs 295.95 lakhs on research and development activities, representing 1.33% of the revenue from operations. In the previous year, the Company had also incurred revenue expenditure of Rs274.89 lakh, constituting 1.14% of the revenue from operations. The Company remains committed to sustained investments in research, innovation and technology development to strengthen its competitive advantage, expand its product portfolio and support long-term sustainable growth.

HUMAN RESOURCES & INDUSTRIAL RELATIONS

Your Companys growth and long-term success are driven by the strength, capability and commitment of its human capital. In an increasingly competitive and technology-driven business environment, your Company remains focused on attracting, developing and retaining a highly skilled, motivated and performance-oriented workforce. It continues to invest in employee learning and development through structured training programmes, leadership development initiatives, technical skill enhancement and continuous learning opportunities to build future-ready capabilities.

Industrial relations across the Companys operations remained cordial, peaceful and harmonious throughout the year under review. The Company fosters an open, inclusive and collaborative work culture that encourages innovation, teamwork, diversity, meritocracy and employee engagement. It is committed to providing rewarding career opportunities, a performance-driven work environment and a culture of continuous improvement that enables employees to realise their full potential. Through sustained investments in talent development, employee well-being, succession planning and organisational capability building, the Company aims to strengthen its human capital and support its long-term strategic objectives. By providing employees with meaningful opportunities for professional growth, skill development and career progression, the Company continues to build a motivated, high-performing and future-ready workforce aligned with its long-term business objectives.

During the year, your Companys HR division successfully recruited 65 people (replacements as well as new joining) in response to various business needs. Manpower strength as of 31.03.2026 was 517.

FUTURE OUTLOOK

The global pump industry is expected to witness steady growth, supported by rising demand in oil & gas, mining, wastewater management, biogas, and renewable energy. Infrastructure expansion, stricter environmental norms, and the shift towards energy-efficient solutions are further driving opportunities across both developed and emerging markets.

However, the time ahead will be quite challenging with geopolitical tensions, supply chain disruptions, tariff uncertainties, and inflationary pressures in the US and Europe impacting global growth. While the domestic economy remains resilient, reliance on exports exposes the Company to risks from exchange rate fluctuations and evolving trade policies.

Your Company is strategically positioned to leverage these trends with its global footprint and the strong manufacturing and marketing infrastructure with presence in five continents besides strong Research & Development setup, experienced and motivated Manpower. On the domestic front, strong economic momentum in India, along with opportunities in biogas, solar pumping systems, and defence applications, are expected to support growth. New product lines, downhole pumps and the solar pumping systems will also enhance the Companys offerings.

The global positive displacement pump industry is expected to witness sustained long-term growth, driven by increasing investments in oil & gas, water and wastewater management, mining, chemicals, food & beverages, renewable energy and biogas sectoRs.Rising infrastructure development, rapid industrialization in emerging economies, growing emphasis on energy efficiency, and increasingly stringent environmental regulations are expected to continue creating significant opportunities for technologically advanced and reliable pumping solutions. In addition, digitalisation, automation and the adoption of smart pumping systems are expected to reshape customer expectations and enhance demand for intelligent, energy-efficient products.

At the same time, the global business environment continues to remain challenging due to geopolitical uncertainties, evolving trade and tariff policies, supply chain realignments, volatility in commodity and freight costs, foreign exchange fluctuations, and uneven economic growth across major markets. While inflationary pressures have moderated in several advanced economies, higher interest rates, trade protectionism and geopolitical developments continue to influence global investment sentiment and industrial capital expenditure.

Your Company is well positioned to capitalise on these opportunities through its diversified global presence spanning five continents, strong manufacturing capabilities, robust research and development infrastructure, expanding product portfolio and experienced management team. Continued investments in SAP and digital initiatives, and increasing focus on product innovation are expected to further enhance operational efficiency and support future growth. The Company also expects to benefit from emerging opportunities in wastewater management, biogas, renewable energy, oil & gas, mining, defence, downhole pumps and solar pumping systems, while continuing to strengthen its presence in existing and new international markets.

In line with its long-term strategic vision and stated mission Roto Next USD 100 Million journey, the Company remains committed to sustainable and profitable growth through continuous innovation, customer-centric solutions, operational excellence and geographic expansion. Your Company has recalibrated its mission to achieve consolidated revenue of USD 100 million by Y30 instead of Y28, while the long-term aspiration is to establish the Company among the top five global manufacturers of Positive Displacement Pumps.

This report contains certain forward-looking statements within the meaning of applicable securities laws and regulations. These statements involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Important factors that could make a difference include economic conditions affecting demand and supply, government regulations, taxation, natural calamities, raw material prices, exchange rate fluctuations and

other incidental factoRs.The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements.

For and on behalf of the Board of Directors
Harish Chandra Gupta
Chairman & Managing Director
DIN:00334405

Place: Delhi
Date: 08.08.2026