Royal India Corporation Ltd Management Discussions

1. Executive Overview

During the financial year, Royal India Corporation Limited demonstrated remarkable resilience and strategic agility, navigating a complex macroeconomic landscape to deliver sustainable growth. Our unique diversified business portfolio—spanning Stone Mining, Defence, Gold, and Real Estate—served as a powerful hedge against sector-specific volatility. By balancing high-liquidity commodity trading, the Company has solidified its market position and enhanced shareholder value.

2. Industry Structure, Developments, and Outlook

2.1 Gold Market & Segment Information

• Industry Structure & Developments: The global gold market encompasses primary mining, refining, investment demand (bars, coins, and ETFs), and central bank reserves, alongside a thriving jewelry retail segment. Gold continues to serve as a primary macroeconomic hedge against inflation, currency volatility, and geopolitical uncertainty. Royal India Corporation Limited has performed significantly well in this segment and shall continue to grow in this financial year as well.

• Outlook: Structural macroeconomic headwinds, fluctuating interest rate cycles, and persistent central bank bullion accumulation support a stable-to-positive outlook for gold prices. Digital gold platforms, traceable supply chains, and ESG-compliant sourcing are reshaping consumer and institutional preferences.

2.2 Stone Mining

• Industry Structure & Developments: The stone mining and aggregates sector remains foundational to global infrastructure development, urban expansion, and heavy construction. Technological modernization—such as automated drilling, IoT-enabled fleet management, and AI-driven sorting—has enhanced quarrying yields and operational efficiency. However, the industry faces mounting scrutiny regarding environmental compliance, carbon footprint reduction, and land reclamation mandates. To be a part of this growth story Royal India Corporation Limited decided to venture into developing our business interests in Mining material that will have a wide range of applications from interiors to hardscapes, exteriors, cladding, and landscaping as well as value add in design such as monuments, sculptures and home decor. Our 100% investment into Suryam India Minecorp Limited is a part of our strategic focus into entering and growing in this sector.

• Outlook: Driven by sustained government expenditures on highways, smart cities, and industrial corridors, demand for high-grade aggregates and dimensional stone is projected to remain robust. Long-term success will hinge on sustainable mining practices, water recycling, and green-quarry initiatives.

2.3 Defence

• Industry Structure & Developments: The defence manufacturing and technology segment is characterized by high capital intensity, strict regulatory frameworks, long

term procurement cycles, and stringent quality assurance. Geopolitical realignments have prompted nations worldwide to prioritize domestic manufacturing, indigenous capability development, and supply chain resilience. During the last few months when the management of RICL realized that the defence sector was poised to grow rapidly especially due to the unpredictably changing Geo Political issues, realignment of allies and increasing regional conflicts, the foray into this sector was inevitable and backed by strong market forces. The interesting areas were electronic warfare, drone technology (UAVs), Robotics & ML besides innovation in conventional warfare weaponry. Our 100% investment into Simunergy Terranova Private Limited and MOU with GET Rosatom is a part of our strategic focus into entering and growing in this sector.

• Outlook: Increased national defence allocations and a global shift toward modernization, advanced electronics, autonomous systems, and cybersecurity create significant opportunities. Public-private partnerships and technology transfer agreements are expected to accelerate growth for agile private-sector defense contractors.

2.4 Real Estate Market & Segment Information

• Industry Structure & Developments: The real estate sector spans residential, commercial, retail, and industrial/logistics asset classes. The market is witnessing a flight to quality, with consumers and enterprises favoring institutional-grade, sustainable, and technology-enabled developments. PropTech adoption, flexible workspace models, and green building certifications (e.g., LEED, IGBC) are now core operational drivers. As RICL continues to pioneer transformative projects, they remain poised to shape the landscape of real estate and infrastructure development, enriching communities and delivering value to all.

• Outlook: Urbanization, rising disposable incomes, and organized retail and logistics demand underpin steady sectoral growth. High interest rate environments necessitate disciplined capital allocation and agile project execution.

3. Financial Performance and Operational Review

During the financial year under review, the Company demonstrated operational resilience across its diversified business verticals.

• Revenue Diversification: Top-line growth was supported by steady volumes in the stable bullion realisations in the gold segment.

• Cost Optimisation & Margins: Management maintained stringent cost controls, leveraging synergies across shared administrative functions. Supply chain bottlenecks in raw material procurement were mitigated through advanced vendor-management strategies and long-term contracting.

• Capital Expenditure (CapEx): Investments were directed towards securing ethically sourced gold inventory, and advancing the inventories.

4. Segment-wise Performance

4.1 Gold Market Segment

• Operational Performance: Focused on precision trading, risk-hedging mechanisms, and inventory turnover efficiency. Enhanced due diligence protocols ensured complete transparency and regulatory compliance across bullion sourcing.

• Segment Financials: Delivered strong liquidity and steady revenue contributions, acting as a natural financial buffer during broader market volatility.

4.2 Stone Mining Segment

• Operational Performance and Segment Financials: The Company is yet to receive environmental clearance for commencing its business.

4.3 Defence Segment

• Operational Performance and Segment Financials: During the year, the company has incorporated a Wholly-Owned Subsidiary and has entered into a MOU with GET Rosatom to enter and grow in this sector but has made no financial contribution to the revenue of the Company.

4.4 Real Estate Market Segment

• Operational Performance and Segment Financials: The Company has successfully completed the divestment of its Kalyan Marina Project. Subsequent to completion of the said transaction, the Company is actively evaluating various new project opportunities across identified sectors and geographies, in line with its strategic growth objectives. However, there is no revenue generation from this sector.

5. Key Financial Ratios

In compliance with SEBI listing regulations, the key financial ratios and significant changes are detailed below:

• Debtors Turnover Ratio: Improved to 4.88 times due to stricter credit controls in the Real Estate and Mining segments.

• Inventory Turnover Ratio: Maintained at 1.04 times, reflecting efficient liquidating cycles in the Gold and Real Estate sectors.

• Interest Coverage Ratio: Stood comfortably at 44.85 times, demonstrating our robust ability to service debt obligations.

• Current Ratio: 2.69, showcasing a healthy liquidity cushion to support ongoing operational requirements.

• Debt-Equity Ratio: Decreased to 0.09 following strategic debt reduction via internal cash accruals.

• Return on Net Worth (RoNW): 38.91% driven by profitability in the Gold and Bullion business.

6. Threats, Risks, and Concerns

• Regulatory Changes: Environmental clearances and strict compliance mandates could impact mining expansion timelines.

• Geopolitical and Supply Chain Disruption: The Defence segment relies heavily on specialized electronic and alloy imports; supply bottlenecks could delay project deliveries.

• Commodity Price Volatility: Sharp fluctuations in international gold prices present margin risks to our bullion trading desk.

• Interest Rate Risks: A prolonged high-interest-rate environment could temporarily dampen consumer sentiments in the mid-segment housing market.

7. Internal Control Systems and Their Adequacy

The Company has established a robust internal control framework commensurate with the size and complexity of its diversified operations. Regular internal audits are conducted by independent professionals to evaluate the efficacy of risk management, financial controls, and statutory compliances. The Audit Committee actively reviews these findings and implements corrective measures promptly to safeguard corporate assets.

8. Human Resources and Industrial Relations

Our employees are the core drivers of our multi-sectoral success. During the year, specific technical training programs were executed for our defense engineering team, alongside stringent safety drills at our mining sites. Total headcount stands at [Number]. Industrial relations remained harmonious and collaborative across all manufacturing units, mining quarries, and project sites.

9. Cautionary Statement

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, and expectations may be forward-looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied due to factors such as global and domestic economic conditions, government policies, regulations, and other incidental factors.

By order of the Board
For Royal India Corporation Limited
Sd/-

Nitin Gujral
Managing Director
DIN: 08184605

Date: September 02, 2026
Place: Mumbai