Sampann Utpadan India Ltd Management Discussions

The Management Discussion and Analysis ("MD&A") for the nancial year ended March 31, 2026, provides an overview of the operating performance, nancial condition, business environment, opportunities, risks and outlook of the Company.

The discussion contained herein should be read in conjunction with the Audited Financial Statements of the Company for the nancial year ended March 31, 2026, together with the accompanying notes and other disclosures forming part of the Annual Report.

The analysis is based on the Companys current assessment of the business environment and may contain certain forward-looking statements. Such statements are subject to various risks, uncertainties and assumptions, and actual results may differ materially from those expressed or implied herein.

BUSINESS OVERVIEW

The Company is principally engaged in the business of manufacturing and processing reclaimed rubber, which is produced through the recycling and processing of end-of-life rubber products, particularly waste and used tyres and other rubber-based materials.

Reclaimed rubber is an important material in the rubber industry as it can be used, either independently or in combination with natural and synthetic rubber, in the manufacture of various rubber products including tyres, tubes, belts, footwear, mats, hoses, automotive components and other industrial rubber products.

The Companys business model is aligned with the principles of resource ef ciency and circular economy by converting waste rubber into a usable industrial raw material. The increasing focus on recycling, sustainability, cost optimisation and ef cient utilisation of natural resources provides a long-term structural opportunity for the reclaimed rubber industry.

During FY 2025-26, the Company continued to focus on operational ef ciency, product quality, customer relationships, procurement of suitable raw material and optimisation of manufacturing processes.

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Indian rubber industry is closely linked with the automotive, tyre, footwear, engineering, infrastructure and general manufacturing sectors. The demand for rubber products is therefore in uenced by automobile production, replacement tyre demand, industrial activity, infrastructure development and overall economic growth.

The reclaimed rubber segment forms an important part of the rubber recycling ecosystem. The use of reclaimed rubber enables manufacturers to partially substitute virgin natural or synthetic rubber and can provide economic and environmental bene ts.

As per data published by the Rubber Board, reclaimed rubber production in India increased from approximately 154,940 tonnes in FY 2023-24 to approximately 168,870 tonnes in FY 2024-25. Consumption also increased from approximately 154,300 tonnes to approximately 167,500 tonnes during the same period. This indicates continued demand for reclaimed rubber in the domestic market.

The Company believes that increasing environmental awareness, growing emphasis on recycling, circular economy initiatives, responsible waste management and the need for cost-effective raw materials will continue to support the long-term development of the reclaimed rubber industry.

The industry, however, remains exposed to uctuations in the prices and availability of natural rubber, synthetic rubber, scrap tyres, energy, fuel, transportation and other inputs.

BUSINESS ENVIRONMENT

The operating environment during FY 2025-26 continued to be in uenced by uctuations in commodity prices, input costs, demand conditions, interest rates, logistics costs and developments in the automotive and tyre industries.

The reclaimed rubber industry is particularly sensitive to the availability and quality of scrap tyres and other waste rubber materials. The cost of raw material has a direct bearing on the Companys margins.

At the same time, the increasing emphasis on sustainable manufacturing and recycling presents opportunities for the industry. Manufacturers of tyres and other rubber products are increasingly evaluating ways to optimise raw material costs and improve environmental performance.

The Company continues to monitor market developments closely and remains focused on maintaining an appropriate balance between sales volumes, product realisation, raw material costs and operating ef ciency.

OPPORTUNITIES

The Company believes that the reclaimed rubber business offers several opportunities for sustainable long-term growth.

a. Growth in Automotive and Tyre Industry

The automotive and tyre industries remain important consumers of rubber. Growth in vehicle ownership, replacement tyre demand and industrial applications can contribute to increased demand for rubber and rubber-based materials.

b. Circular Economy and Recycling

The increasing emphasis on recycling and circular economy practices creates a favourable environment for reclaimed rubber manufacturers.

Recycling waste tyres and converting them into useful industrial raw materials reduces dependence on virgin raw materials and supports resource ef ciency.

c. Cost Optimisation for Customers

Reclaimed rubber can provide manufacturers with an opportunity to optimise their overall raw material cost while maintaining the required performance characteristics for suitable applications.

d. Product Development

There is scope for development and improvement of reclaimed rubber grades suitable for speci c applications and customer requirements.

The Company may explore opportunities for product diversi cation, quality improvement and development of higher-value products based on market demand.

e. Environmental Sustainability

The conversion of waste rubber into reusable raw material supports sustainable manufacturing and can contribute to reduction in waste generation.

The Company believes that sustainability-led demand can provide a structural opportunity for the reclaimed rubber industry over the medium to long term.

THREATS AND CHALLENGES

The principal challenges faced by the Company include:

1. Volatility in prices of natural rubber, synthetic rubber and other raw materials.

2. Fluctuations in availability and procurement prices of scrap tyres and waste rubber.

3. Volatility in energy and fuel costs.

4. Changes in demand from the tyre and automotive industries.

5. Competition from domestic and international manufacturers.

6. Availability of alternative raw materials and synthetic rubber.

7. Changes in environmental, waste management and regulatory requirements.

8. Foreign exchange uctuations affecting imported inputs, equipment or other transactions, wherever applicable.

9. Transportation and logistics costs.

10. General economic uncertainties and changes in customer purchasing behaviour.

The Company continues to monitor these risks and take appropriate operational and commercial measures to mitigate their potential impact.

SEGMENT-WISE / PRODUCT-WISE PERFORMANCE

During FY 2025-26, the principal business activity of the Company continued to be the Rubber Reclaim Division.

The Rubber Reclaim Division remained the major contributor to the Companys operating revenue.

The Companys operating focus during the year remained on: l maintaining production ef ciency; l improving product quality and consistency; l ensuring timely procurement of raw materials; l strengthening customer relationships; l controlling manufacturing and operating costs; and l improving overall capacity utilisation.

The Company also has a Wind Mill Energy segment. The contribution from the Wind Mill Energy segment remained relatively small in comparison with the Companys principal Rubber Reclaim business.

Company has sold their Wind Mill Energy segment in June 2026.

Accordingly, the Companys overall operating performance continues to be substantially dependent upon the performance of its Rubber Reclaim Division.

OPERATIONAL PERFORMANCE

During FY 2025-26, the Company continued its operations with a focus on ef cient utilisation of manufacturing resources and optimisation of input costs.

The management remained focused on improving manufacturing ef ciencies and maintaining product quality in accordance with customer requirements.

The Company continued to strengthen its procurement and production planning processes to manage uctuations in the availability and prices of raw materials.

The management believes that consistent product quality, reliable supplies, customer relationships and cost ef ciency will remain key competitive factors for the Companys business.

FINANCIAL PERFORMANCE

The nancial performance of the Company during FY 2025-26, as compared with the previous nancial year, is summarised below:

(Figures In Lakhs)

Particulars	FY 2025-26	FY2024-25
Revenue from Operations	13,468.53	9,263.63
Other Income	891.76	518.94
Total Revenue	14,360.29	9,782.57
Less: Expenditure except Financial Cost and Depreciation	12,719.30	9,383.58
Pro t/Loss before Financial Cost, Depreciation and Tax	1,640.99	398.99
Less: Financial Cost	140.07	101.12
Less: Depreciation and amortization	593.15	570.07
Less: Exceptional Items	--	--
Add: Exceptional Items		811.26
Sale of the Extended Producer Responsibility (EPR) Certi cate
Pro t/Loss before Tax (PBT)	907.76	539.02
Less: Tax Expenses	2.28	1.40
Pro t/Loss after Tax (PAT)	679.29	398.55

The Rubber Reclaim Division contributed approximately 134.40 crore during FY 2025-26 and remained the principal source of operating revenue of the Company.

The management continues to focus on improving operating ef ciencies, optimising raw material procurement and maintaining disciplined cost management.

The nancial performance should be read together with the Audited Financial Statements and the accompanying notes forming part of this Annual Report.

ANALYSIS OF FINANCIAL PERFORMANCE

Revenue

The Companys total income/turnover during FY 2025-26 was approximately 142.64 crore. The Rubber Reclaim Division accounted for the majority of the Companys revenue.

The performance re ects the continued importance of the Companys core manufacturing operations.

Other Income

Other income during the year amounted to approximately 7.95 crore. The nature and composition of other income are disclosed separately in the nancial statements.

Pro tability

The Companys pro tability is in uenced by the selling price of reclaimed rubber, raw material procurement costs, energy costs, employee costs, manufacturing expenses, nance costs and other operating expenses.

Management continues to focus on improving the relationship between selling prices and input costs and maintaining operating discipline.

The management remains focused on maintaining a sound nancial position and ensuring ef cient utilisation of capital.

LIQUIDITY AND CAPITAL RESOURCES

The Companys liquidity position is managed with a focus on meeting its working capital requirements, operational expenses, statutory obligations and other nancial commitments.

The principal working capital requirements of the Company arise from procurement of raw materials, inventory holding, receivables and other operating expenses.

The Company continues to monitor its receivable position and inventory levels and endeavours to maintain adequate liquidity for its operational requirements.

The management believes that the Companys internal accruals and available nancial resources are adequate to meet its foreseeable operational requirements, subject to normal business conditions.

CAPITAL EXPENDITURE

The Company periodically evaluates its capital expenditure requirements with a view to improving production ef ciency, product quality, capacity utilisation and operational reliability.

Any signi cant capital expenditure undertaken during the year, together with the nature and amount thereof, is appropriately disclosed in the nancial statements.

Going forward, capital expenditure will be undertaken based on business requirements, expected returns, availability of resources and prevailing market conditions.

OUTLOOK

The long-term outlook for the reclaimed rubber industry remains cautiously positive.

The growth of the automotive and tyre sectors, increasing focus on recycling, environmental sustainability, circular economy initiatives and the need for ef cient utilisation of raw materials are expected to support the demand for reclaimed rubber.

The Company intends to focus on strengthening its core Rubber Reclaim business through: l improving operational ef ciency; l maintaining consistent product quality; l strengthening relationships with existing customers; l expanding its customer base; l optimising raw material procurement; l controlling manufacturing and operating costs; l improving capacity utilisation; and l exploring opportunities for product development and value addition.

The management remains cautiously optimistic about the medium- to long-term prospects of the business while remaining mindful of commodity price volatility and competitive pressures

RISKS AND CONCERNS

The Companys business is exposed to various operational, nancial, market, regulatory and environmental risks.

Raw Material Risk

The availability and price of scrap tyres, waste rubber, natural rubber and other raw materials may uctuate depending upon market conditions.

Commodity Price Risk

Changes in the prices of natural rubber, synthetic rubber, carbon black, oil, fuel and other commodities may affect the Companys cost structure and pro tability.

Market Risk

Demand for reclaimed rubber is in uenced by the performance of the tyre, automotive and industrial sectors.

Competition Risk

The Company operates in a competitive market. Competition may arise from domestic manufacturers, imported products and alternative raw materials.

Energy Cost Risk

Manufacturing operations are dependent on energy and fuel. Any signi cant increase in energy costs may adversely affect operating margins.

Regulatory Risk

Changes in environmental regulations, waste management requirements, labour regulations, taxation and other applicable laws may increase compliance costs or affect operations.

Customer Concentration Risk

Dependence on a limited number of major customers, if any, may expose the Company to customer concentration risk.

The Company seeks to mitigate these risks through diversi cation of suppliers and customers, operational controls, quality management, cost optimisation and continuous monitoring of market developments.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has established an appropriate system of internal nancial controls commensurate with the size and nature of its operations.

The internal control framework is designed to provide reasonable assurance regarding: l accuracy and completeness of accounting records; l safeguarding of assets; l prevention and detection of fraud and errors; l compliance with applicable laws and regulations; l proper authorisation of transactions; l reliability of nancial reporting; and l ef cient conduct of business operations.

The Audit Committee periodically reviews the adequacy and effectiveness of the Companys internal control systems.

The statutory auditors also consider the internal nancial controls relevant to the preparation and presentation of the nancial statements in accordance with applicable requirements.

Based on the reviews undertaken during the year, the management believes that the Companys internal control systems are adequate and operating effectively for the Companys present scale and nature of operations.

HUMAN RESOURCES AND INDUSTRIAL RELATIONS

Human resources continue to remain an important component of the Companys business operations.

The Company recognises that skilled, motivated and responsible employees are essential for maintaining manufacturing ef ciency, product quality and customer satisfaction.

During FY 2025-26, the Company continued to focus on employee welfare, workplace safety, skill development and maintaining a positive working environment.

Industrial relations remained cordial during the year.

The total number of employees of the Company as on March 31, 2026 was 90 (Ninety)

TECHNOLOGY AND QUALITY

The Company recognises the importance of technology and process ef ciency in maintaining competitiveness in the reclaimed rubber industry.

The Company continues to focus on improving manufacturing processes, product consistency, quality control and ef cient utilisation of raw materials.

Quality assurance and process monitoring remain important aspects of the Companys operations, particularly given the varying characteristics of waste rubber and scrap tyre feedstock.

The Company intends to continue evaluating appropriate technological improvements and process optimisation opportunities.

ENVIRONMENT, HEALTH AND SAFETY

Environmental sustainability is an integral part of the reclaimed rubber business.

The Companys business contributes to recycling and reuse of waste rubber and supports the broader objective of reducing waste and improving resource utilisation.

The Company is committed to complying with applicable environmental, health and safety requirements.

The management continues to focus on maintaining appropriate workplace safety standards and promoting employee awareness of safe operating practices.

INTERNAL AUDIT

The Company has an internal audit mechanism commensurate with the size and complexity of its operations.

Internal audit activities provide an independent review of various operational and nancial processes and assist management in identifying areas for improvement.

The observations and recommendations arising from internal audit are reviewed by the management and, wherever applicable, by the Audit Committee.

INDUSTRIAL RELATIONS

The Company maintains constructive relationships with its employees and emphasises a safe, disciplined, and productive working environment.

During the nancial year under review, industrial relations remained cordial, and there were no material disruptions to the Companys operations due to industrial relations issues.

CAUTIONARY STATEMENT

This Management Discussion and Analysis contains statements describing the Companys objectives, projections, expectations, estimates and future prospects that may constitute "forward-looking statements" within the meaning of applicable securities laws and regulations.

Actual results could differ materially from those expressed or implied due to various factors, including changes in economic conditions, demand for rubber products, raw material prices, availability of scrap tyres, energy costs, competition, regulatory changes, taxation, interest rates, foreign exchange uctuations and other risks and uncertainties.

The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of future events, new information or otherwise.

The discussion of nancial performance and results of operations should be read in conjunction with the Audited Financial Statements and related notes appearing elsewhere in this Annual Report.

MANAGEMENTS OVERALL ASSESSMENT

The management believes that the Companys core Rubber Reclaim business continues to have sound long-term potential, supported by increasing awareness of recycling, resource ef ciency and circular economy principles.

The Company will continue to focus on strengthening its core operations, improving ef ciency, maintaining product quality, managing costs, expanding its customer base and prudently deploying its nancial resources.

While the Company remains exposed to uctuations in raw material prices, demand conditions, competition and regulatory requirements, management believes that disciplined execution and continued focus on operational ef ciency will enable the Company to pursue sustainable growth and create long-term value for its stakeholders.

Place: - New Delhi	For and on behalf of Board of
Date: - August 27, 2026	Sampann Utpadan India Limited
	(Formerly Known as S. E. Power Limited)
Sd/-	Sd/-
Sachin Agarwal	Sanjeetkumar Gourishankar Rath
(Managing Director)	(Executive Director)
DIN:-00007047	DIN:- 08140999