Economy Overview

Global Economy

In CY 2026, the global economy faces a major test from the outbreak of conflict in the Middle East, which has triggered sharp energy price increases and renewed inflationary pressures. According to the IMFs World Economic Outlook (April 2026), Global growth is projected at 3.1% in CY 2026 compared with an estimated 3.4% in CY 2025 before improving moderately to 3.2% in CY 2027. The slowdown is most pronounced in emerging market and developing economies, particularly commodity importers. Despite these headwinds, advanced economies and emerging markets have shown underlying resilience, supported by easing core inflation, technology-led productivity gains and stabilising monetary conditions across major economies.

Outlook

Looking ahead, the IMFs April 2026 World Economic Outlook projects global growth to recover modestly to 3.2% in CY 2027, assuming the Middle East conflict remains limited in duration and scope, with energy supply disruptions easing by mid-2026. Advanced economies are expected to grow at approximately 1.8% in CY 2026, and 1.7% in CY 2027, while emerging markets and developing economies are forecast to expand at around 3.9% in 2026 and 4.2% in 2027. Growth recovery is expected to be supported by technology-led productivity gains and gradual revival of global trade, although geopolitical risks, elevated energy prices and protectionist measures remain key downside concerns.

Indian Economy

India continued to demonstrate remarkable resilience during FY 2025-26, reinforcing its position as one of the worlds fastest-growing major economies despite an uncertain global macroeconomic environment marked by geopolitical tensions, inflationary pressures and trade disruptions. According to the National Statistics Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI), Indias real Gross Domestic Product (GDP) grew by 7.7% during FY 2025-26, reflecting the strength of domestic demand, sustained public investment and improving private sector participation.

Economic growth remained broad-based across sectors. Manufacturing and construction continued to witness healthy expansion, supported by robust infrastructure development, government capital expenditure and increased industrial activity. The services sector remained resilient, driven by financial services, trade, transportation, communication and digital economy initiatives. The agriculture sector also recorded steady growth, aided by favourable monsoon conditions and improved farm output.

Private Final Consumption Expenditure (PFCE) continued to remain the principal driver of economic growth, supported by improving employment, rising disposable incomes and stable inflation. Simultaneously, Government Final Consumption Expenditure (GFCE) and Gross Fixed Capital Formation (GFCF) reflected the Governments continued emphasis on infrastructure creation, logistics development and long-term capacity building. Investments in renewable energy, manufacturing, digital infrastructure and urban development further strengthened the investment cycle.

Indias macroeconomic fundamentals remained robust, supported by prudent fiscal management, a well-capitalised banking system, adequate foreign exchange reserves and a stable financial sector. Continued structural reforms, policy support for manufacturing, ease of doing business initiatives and accelerated digital adoption further enhanced Indias attractiveness as a global investment destination.

Outlook

The medium-term outlook for the Indian economy remains favourable, underpinned by strong domestic consumption, sustained infrastructure spending, increasing private investments, rapid urbanisation and continued policy support towards manufacturing and clean energy transition. Government initiatives such as Production Linked Incentive (PLI) schemes, National Infrastructure Pipeline (NIP), PM Gati Shakti and renewable energy programmes are expected to further improve industrial competitiveness and investment activity.

While external challenges including geopolitical developments, global inflation, commodity price volatility and evolving trade dynamics may create near-term uncertainties, Indias resilient macroeconomic fundamentals, favourable demographic profile and ongoing structural reforms are expected to support sustainable long-term economic growth. The Indian economy is therefore expected to continue playing a significant role in driving global economic expansion.

GDP Growth Trend in India

FY 2024-25	FY 2025-26 (PE)	FY 2026-27 (P)
7.1%	7.7%	6.6%

E-Estimated P-Projected Source: Ministry of Statistics and Programme Implementation (MoSPI), National Statistics Office (NSO)-Provisional Estimates of Annual Gross Domestic Product for FY 2025-26 and Quarterly Estimates released on 5 June 2026.

Industry Overview

Electric Vehicle Charging Industry

Global The global electric vehicle (EV) charging industry continued its strong growth trajectory during 2025, supported by accelerating EV adoption, favourable government policies and sustained investments in charging infrastructure. According to the International Energy Agency (IEA), the global stock of publicly accessible charging points exceeded 7 million by the end of 2025, with nearly 1.8 million new public charging points added during the year, representing growth of more than 33% over 2024. The expansion of charging infrastructure has broadly kept pace with the increasing global electric vehicle fleet, with approximately 11 electric light-duty vehicles per public charging point worldwide.

China continued to dominate the global charging infrastructure landscape, accounting for more than 65% of the worlds public charging points. During 2025, Chinas public charging network expanded from approximately 3.4 million charging points to over 4.7 million, contributing more than 75% of the global increase in public charging infrastructure. Europe continued to strengthen its charging ecosystem, with the Netherlands, Germany and France leading infrastructure deployment, while the rollout of ultra-fast charging networks accelerated under the European Unions Alternative Fuels Infrastructure Regulation (AFIR). The United States also recorded a record addition of public charging points during 2025, supported by continued federal and state-level investments aimed at expanding nationwide charging accessibility.

The global charging network continued to evolve towards higher-capacity infrastructure, with the deployment of fast and ultra-fast chargers increasing at a faster pace than conventional AC chargers. This transition is expected to improve charging convenience, reduce charging time and support the growing penetration of long-range electric vehicles across major markets.

Looking ahead, the global EV charging industry is expected to witness sustained long-term growth as governments continue to promote transport electrification and investments in clean mobility infrastructure. According to the IEAs Current Policies Scenario (CPS), the global public charging network will require significant expansion over the coming decade to support the increasing electric vehicle fleet, creating substantial opportunities across charging infrastructure development, equipment manufacturing, software solutions and related services.

India Indias EV charging sector continued to witness strong growth during FY 2025-26, driven by accelerating electric vehicle adoption, supportive government policies and increasing investments from both public and private sector participants. The Governments continued focus on strengthening charging infrastructure through initiatives such as the PM E-DRIVE Scheme has provided significant impetus to the development of a nationwide charging network. Expansion efforts have remained focused on urban centres, major highways and high-traffic mobility corridors to support the growing electric vehicle fleet across the country. According to the International Energy Agency (IEA), Indias public charging infrastructure expanded significantly during 2025, with the total number of publicly accessible charging points reaching approximately 75,000. The increasing deployment of fast and ultrafast charging solutions by oil marketing companies, charge point operators, utilities and private enterprises has enhanced charging accessibility and improved consumer confidence in electric mobility.

Looking ahead, Indias EV charging industry is expected to maintain a strong growth trajectory, supported by the Governments objective of expanding the public charging network to approximately 375,000 charging points by 2030. The continued growth of electric two-wheelers, three-wheelers, passenger vehicles and commercial fleets is expected to drive sustained demand for charging infrastructure across the country. While challenges related to infrastructure economics, grid readiness and evolving regulatory frameworks remain, increasing policy support, technological advancements and rising private sector participation are expected to strengthen the industrys long-term growth prospects. The development of a robust, reliable and accessible charging ecosystem will remain critical to achieving Indias transportation electrification goals and supporting the countrys broader sustainability objectives.

Solar Industry

Indias solar energy sector continued its strong growth momentum during FY 2025-26, further strengthening the countrys position as one of the worlds fastest-growing renewable energy markets. Driven by supportive government policies, increasing energy demand, declining solar generation costs and growing commitments towards clean energy transition, solar power remained the largest contributor to Indias renewable energy capacity additions during the year.

The country witnessed substantial growth in both utility-scale and distributed solar installations, supported by large-scale solar parks, transmission infrastructure development and rooftop solar initiatives, including the PM Surya Ghar: Muft Bijli Yojana. Indias cumulative installed solar power capacity crossed 130 GW during FY 2025-26, reflecting the sectors rapid expansion and its growing contribution to the nations energy mix. Solar energy continued to account for the largest share of Indias renewable energy portfolio, supported by significant capacity additions across states such as Rajasthan, Gujarat, Maharashtra, Tamil Nadu and Madhya Pradesh.

The domestic solar manufacturing ecosystem also continued to strengthen, supported by Production Linked Incentive (PLI) schemes, Approved List of Models and Manufacturers (ALMM) regulations and various policy measures aimed at enhancing self-reliance in the renewable energy value chain. Investments across solar module, cell and ancillary component manufacturing further improved Indias position as an emerging global renewable energy manufacturing hub.

Looking ahead, the sector is expected to witness sustained growth driven by the Government of Indias target of achieving 500 GW of non-fossil fuel capacity by 2030, increasing corporate adoption of renewable energy, expanding green hydrogen initiatives and rising investments in energy storage solutions. Continued policy support, technological advancements and growing investor interest are expected to create significant opportunities across the solar value chain, reinforcing Indias leadership in the global clean energy transition.

Source: Ministry of New and Renewable Energy (MNRE), Government of India; Central Electricity Authority (CEA); National Institute of Solar Energy (NISE); Ministry of Power, Government of India.

Battery Energy Storage Systems (BESS) Industry

Indias Battery Energy Storage Systems (BESS) industry continued to gain momentum during FY 2025-26, driven by the rapid expansion of renewable energy capacity, increasing grid stability requirements and supportive government policies. As solar and wind energy account for a growing share of Indias power generation mix, energy storage has emerged as a critical enabler for renewable integration, peak demand management and reliable power supply.

The Government of India has undertaken several initiatives to accelerate BESS deployment, including the Viability Gap Funding (VGF) scheme and supportive regulatory measures aimed at encouraging large-scale energy storage projects. Falling battery costs, technological advancements and increasing investments from both public and private sector participants have further strengthened the industrys growth prospects.

Looking ahead, the BESS sector is expected to play a pivotal role in supporting Indias target of achieving 500 GW of non-fossil fuel capacity by 2030. Continued policy support, growing renewable energy installations and rising demand for grid flexibility are expected to drive significant growth opportunities across the energy storage value chain.

Source: Ministry of Power, Government of India; Ministry of New and Renewable Energy (MNRE); Central Electricity Authority (CEA)

Lighting Industry

Indias LED lighting industry continued to witness strong growth during FY 2025-26, driven by increasing urbanisation, infrastructure development, rising construction activity and the growing adoption of energy-efficient lighting solutions. According to IMARC Group, the Indian LED lighting market was valued at approximately USD 6.0 billion in 2025 and is projected to reach USD 27.8 billion by 2034, registering a CAGR of 18.58% during 2026-2034. The industrys growth continues to be supported by government initiatives promoting energy efficiency, smart city development and domestic manufacturing, along with increasing consumer preference for sustainable lighting solutions.

The commercial segment continues to dominate the market, supported by robust demand from offices, retail establishments, healthcare facilities, hospitality and public infrastructure projects. Simultaneously, the rapid adoption of smart and connected lighting solutions incorporating IoT-enabled controls, automation and energy management systems is reshaping the industry landscape. Strengthening domestic manufacturing capabilities under the Production Linked Incentive (PLI) Scheme and continued emphasis on quality standards are further enhancing Indias competitiveness as a global manufacturing hub for LED lighting products.

Looking ahead, the Indian LED lighting industry is expected to maintain its strong growth trajectory, supported by ongoing infrastructure investments, increasing penetration of smart lighting technologies, expanding urbanisation and rising awareness of energy-efficient solutions. These factors are expected to create significant long-term opportunities across residential, commercial, industrial and export-oriented segments.

Source: IMARC Group - Indian LED Lighting Market Size, Share, Trends and Forecast (2026-2034).

Medical Devices Industry

Indias medical devices industry continued to witness robust growth during FY 2025-26, driven by expanding healthcare infrastructure, rising healthcare expenditure, increasing health awareness and growing demand for advanced medical technologies. The sector is benefiting from favourable demographic trends, including a growing population, rising disposable incomes, an ageing population and the increasing prevalence of chronic diseases, all of which are driving demand for quality healthcare solutions.

Government initiatives such as Make in India, the Production Linked Incentive (PLI) Scheme and the development of dedicated medical device parks continue to strengthen domestic manufacturing capabilities and attract investments across the value chain. The industrys growth is further supported by increasing adoption of technology-driven healthcare solutions and continued investments in healthcare infrastructure.

India remains one of the fastest-growing medical devices markets globally and is expected to play an increasingly important role in the global MedTech ecosystem. High-growth segments such as diagnostic imaging, cardiovascular devices, orthopaedic implants, medical consumables and in-vitro diagnostics are expected to continue driving industry expansion. With strong policy support, increasing localisation and rising healthcare demand, India is well positioned to emerge as a major global hub for medical device manufacturing and innovation.

Source: India Medical Devices Market Intelligence - U.S. Commercial Service / International Trade Administration (ITA)

Company Overview

Servotech Renewable Power System Limited, an NSE-listed company, is at the forefront of sustainable energy solutions and EV charging technology in India. Established in 2004, the Company continues to focus on Solar Solutions, EV Charging Infrastructure, Energy Storage Solutions and power electronics while strengthening its domestic and international presence.

Servotechs expansion into the Middle East and Africa, along with the introduction of innovative offerings such as the ServPort rooftop PV system and medical-grade oxygen concentrators, reflects its dynamic growth and industry leadership. Guided by a mission to achieve net-zero emissions and reduce reliance on fossil fuels, Servotech integrates modern technology, ethical business practices and a strong focus on societal and environmental impact. The Company delivers reliable, energy-efficient solutions aimed at nurturing a sustainable future.

20+ Years of Excellence and Unwavering Commitment	15,000+ EV Chargers Installed	2 State-of-the-Art Manufacturing Units

Segment Wise Performance

Product Category	FY 2025-26 Revenue Contribution	% of Contribution
Solar Solutions	32,028.75	49.92
EV Charger	27140.12	42.30
others	4997.33	7.78

Manufacturing Excellence

Servotechs manufacturing operations are anchored by two advanced facilities, each playing a crucial role in driving innovation and supporting the transition to clean energy solutions. The Safiabad Manufacturing Facility, commissioned in 2023, is the Companys newest and most technologically advanced plant. Purpose-built to support Indias e-mobility mission, it specialises in the production of EV chargers and critical components. This facility reflects Servotechs commitment to innovation, scalability and sustainability in the clean transportation space. Complementing this is the Kundli Manufacturing Facility, which initially focused on LED products, power and backup oxygen concentrators and UVC devices. As market dynamics evolved, Kundli was transformed into a strategic hub to manufacture clean energy solutions. It now produces solar inverters, battery storage systems and advanced solar technologies, reinforcing Servotechs proactive approach to sustainable growth and manufacturing excellence.

SCOT Analysis

Category	Details
Strengths	- Commitment to a sustainable, low-carbon economy through solutions in energy storage, grid optimisation and electric mobility. - Emphasis on innovation, strategic partnerships and sustainability as core business drivers. - Experienced leadership and a skilled execution team enabling efficient project delivery. - Adoption of advanced, cost-effective technology with an emphasis on safety and quality assurance. - Diverse customer base across industries and geographies. - Agile in scaling product offerings to meet rising demand in clean energy and EV segments. - Robust supply chain and logistics network ensuring timely execution and delivery. - Competitive pricing strategy supported by continued investment in technological advancement. - A customer-centric approach grounded in the implementation of industry best practices.
Challenges	- Ongoing need for technological integration and innovation to keep pace with sector advancements. - Balancing environmental and social responsibilities with operational efficiency. - Intensifying competition in EV charging and solar product markets necessitating constant differentiation. - Risks of supply chain disruptions affecting production schedules and project timelines. - Challenges in cost management while upholding quality standards and customer satisfaction.
Opportunities	- Leveraging emerging technologies to improve operational efficiency and product performance. - Growing market demand due to the increasing adoption of EVs and solar energy solutions. - Benefitting from government incentives and supportive policy frameworks encouraging sectoral growth. - Positioned to attract environmentally conscious customers and investors by staying aligned with green initiatives. - Potential to expand market presence through strategic alliances, joint ventures and new market entries.
Threats	- Regulatory changes could increase compliance costs and operational complexity. - Market volatility leading to fluctuations in demand and pricing dynamics. - Supply chain disruptions due to raw material shortages or logistic delays. - Intense price-based competition exerting pressure on margins. - Risk of rapid technological shifts requiring significant capital investment to stay relevant.

Financial Analysis

The financial performance with respect to operational performance of the Company is discussed in the Directors Report which forms part of the Annual Report.

Key Financial Ratios

The Company has identified the following ratios as key financial ratios:

Sl.	Particulars	31st Mar 2026	31st Mar 2025	Change (%)
1.	Current Ratio (times) = Current Assets / Current Liabilities	1.50	2.16	(30.56)
2.	Debt-Equity Ratio (times) = Total Borrowings / Shareholders Equity	0.73	0.33	119.50
3.	Debtor Turnover (Days)	136.52	96.05	42.13
4.	Return on Equity Ratio (%) = Net Profit after taxes / Avg Shareholders Equity	14.74	18.95	(22.19)
5.	Inventory Turnover Ratio = Revenue from Operations / Avg Inventory	8.40	9.88	(15.05)
6.	Net Profit Ratio (%) = Net Profit / Revenue from Operations	5.65	5.68	(0.53)
7.	Return on Capital Employed (%) = EBIT / Capital Employed	12.82	17.67	(27.45)
8.	Return on Investment (%) = EBIT / Average Total Assets	9.56	13.78	(30.66)
9.	Operating Profit Ratio (%) = Operating Profit / Revenue from Operations	9.26	8.99	2.91
10.	Interest Coverage Ratio = EBIT / Finance Cost	4.94	6.88	(28.20)

1. Current Ratio The Current Ratio decreased primarily due to a relatively higher increase in current liabilities as compared to current assets during the year.

2. Debt-Equity Ratio The increase in the Debt-Equity Ratio is primarily attributable to an increase in total borrowings during the year.

3. Debtor Turnover Ratio The increase in trade receivables is primarily attributable to the timing of revenue recognition and collections, particularly in respect of sales executed during the latter part of the financial year.

4. Return on capital employed The decrease in Return on Capital Employed is mainly attributable to an increase in borrowings and the corresponding increase in capital employed, resulting in a lower return on the capital employed during the year.

5. Return on Investment The decrease in Return on Investment is primarily due to an increase in the total asset/investment base relative to the operating earnings generated during the year.

6. Interest Coverage Ratio The decrease in Interest Coverage Ratio is primarily due to an increase in finance costs during the year, resulting in lower coverage of interest expenses by operating earnings.

Disclosure of Accounting Treatment

The Company has followed all the treatments in the Financial Statements as per the prescribed Accounting Standards.

Human Resource

Servotech views its employees as essential to driving operational excellence and maintaining a competitive edge. The Company is powered by a skilled and dedicated team of professionals who manage operations with efficiency and sound judgment. With a strong emphasis on attracting, developing and retaining a diverse workforce, Servotech strives to unlock each individuals potential within a purpose-driven, inclusive and rewarding environment. The Company remains committed to nurturing continuous growth, both by strengthening employee engagement and pursuing new business opportunities that create long-term value.

To equip its workforce for future challenges and emerging opportunities, Servotech invests proactively in capability building and reskilling initiatives. These ensure that employees remain agile, adaptable and well-prepared to navigate industry changes. The Company promotes a collaborative workplace culture grounded in participation, commitment, knowledge sharing, integrity and confidentiality, encouraging active engagement from all team members. With a steadfast focus on competency development, Servotech provides ample support for both personal and professional advancement.

600+ Skilled Professionals

Employee Health and Safety

At Servotech, employee health and safety are paramount, forming the foundation of a productive and secure work environment. The Company is dedicated to safeguarding the well-being of its workforce by implementing comprehensive measures aligned with industry standards and regulatory requirements. Servotech has established robust health and safety policies as the foundation for a safe workplace. Regular risk assessments are conducted proactively to identify and mitigate potential hazards, while continuous training ensures employees are well-versed in safe work practices, emergency procedures and the correct use of Personal Protective Equipment (PPE).

The Company prioritises emergency preparedness through detailed response plans and routine drills addressing situations such as fires and chemical spills. Servotech supports employee well-being through health and wellness programmes, offering access to medical services and mental health support. A culture of transparency is encouraged through open incident reporting, followed by thorough investigations and corrective actions.

Regular audits and reviews ensure ongoing compliance and uphold the highest safety standards.

Internal Control System

Servotech has set up a strong internal control system to support its operations and maintain best practices throughout the organisation. This system is built on thorough, well-organised policies and procedures addressing all key financial and operational areas. The main features include:

Reliable Financial Reporting: Carefully designed controls guarantee the accuracy and trustworthiness of financial information shared with stakeholders.

Operational Supervision: The system monitors daily operations to ensure they are consistent with the Companys goals and comply with legal requirements.

Asset Safeguarding: Protective measures help prevent unauthorised use or loss of assets, reducing risks and keeping Company resources secure.

Regulatory Compliance: The controls are structured to satisfy legal and industry standards, with ongoing updates to stay in line with international best practices.

Policy and Procedure Framework: Servotech regularly reviews its comprehensive set of policies to match the Companys scale and ongoing development.

Employee Training: The Company invests in regular training sessions to ensure employees understand regulatory requirements and ethical standards.

By implementing these controls, Servotech creates a reliable structure that supports efficient operations and ensures ongoing compliance with regulations.

Cautionary Statement

The statements in the Management Discussion and Analysis regarding the Companys objectives, projections, estimates and expectations may constitute forward-looking statements under relevant securities laws and regulations. Actual outcomes could vary significantly from those anticipated. Key factors that could influence the Companys performance include economic and political conditions, changes in government regulations, tax policies, economic developments and various other internal and external factors. The Company does not commit to updating any forward-looking statements to reflect future events or circumstances. Investors are encouraged to exercise caution and due diligence when interpreting these statements.