Sintercom India Ltd Management Discussions

Forward Looking Statement

The report includes forward-looking statements, which are indicated by terms such as plans, expects, will, anticipates, believes, intends, projects, and estimates. Any statements concerning future expectations or projections, including but not limited to the Companys growth strategy, product development, market position, expenditures, and financial results, are considered forward-looking statements. These statements are based on certain assumptions and expectations regarding future events, and the Company cannot ensure their accuracy or that they will be realized. Actual results, performance, or achievements may differ from those projected in the forward-looking statements. The Company is not obligated to publicly amend, modify, or revise any of these statements due to subsequent developments, information, or events, except as required by law.

INDUSTRY STRUCTURE AND DEVELOPMENTS

GLOBAL ECONOMY OVERVIEW

The global economy remained resilient during Financial Year 2025-26 despite a challenging operating environment characterised by geopolitical tensions, trade-policy uncertainty, energy-price volatility and disruptions to global supply chains.

According to the International Monetary Fund (IMF), World Economic Outlook Update global economic growth is projected at 3.0% in 2026 and 3.4% in 2027. The IMF notes that the global outlook remains uneven, with geopolitical and energy shocks weighing on energy-importing and vulnerable economies, while technology-related investment and AI-driven demand are supporting economies integrated into global technology value chains.

The IMF further notes that global disinflation has stalled and that risks remain from renewed geopolitical conflict and financial-market repricing. Accordingly, the global economic environment is expected to remain one of moderate growth accompanied by elevated uncertainty.

The global business environment is also undergoing a structural transformation in supply chains. Geopolitical developments, trade-policy changes and the need for greater supply-chain resilience are encouraging businesses to diversify sourcing and manufacturing locations.

For the automotive industry, these developments are accelerating localisation, multi-sourcing and regionalisation of supply chains. Countries offering competitive manufacturing costs, engineering capabilities, quality standards and a strong supplier ecosystem are expected to benefit from this restructuring.

The global automotive industry continues to undergo significant structural transformation driven by:

- Electrification and hybridisation;

- Increasing emission and safety requirements;

- Connected and software-defined vehicles;

- Lightweighting and material optimisation;

- Automation and Industry 4.0;

- Increasing localisation of supply chains; and

- Greater focus on supply-chain resilience.

The global automotive industry demonstrated a recovery in 2025, although the pace of growth varied significantly across regions. According to the International Organization of Motor Vehicle Manufacturers (OICA), global vehicle sales increased from approximately 95.3 million units in 2024 to 99.8 million units in 2025, representing growth of approximately 4.7%. Global vehicle production increased by approximately 3.9% to 96.4 million units during the same period.

Growth was predominantly driven by Asia, which continued to strengthen its position as the center of global automotive manufacturing and demand. Vehicle sales across Asia, Oceania and the Middle East increased by approximately 71% to 55.0 million units, accounting for more than 55% of global sales whereas the sales in European region remained subdued at about 0.4% and USA witnessed growth of 1-2%.

Electrification is becoming an increasingly important structural driver of the global automotive industry. According to the International Energy Agency (IEA), global electric-car sales exceeded 20 million units in 2025, representing growth of approximately 20% and accounting for around one-quarter of all new cars sold globally.

China remained the worlds largest electric-vehicle market, with electric vehicles accounting for approximately 55% of car sales in 2025. Europe recorded EV sales growth of more than 30%, while EV penetration in the United States remained below 10%.

The rapid growth of electrification is resulting in a gradual change in the global automotive component landscape. While conventional engine-related applications may experience structural changes over the longer term, opportunities are emerging in electric motors, stators, transmission systems, thermal management, lightweight components and other new-age mobility applications.

These trends are creating opportunities for component manufacturers with strong manufacturing capabilities, quality systems, engineering expertise and cost competitiveness.

India is increasingly positioned to benefit from this global supply-chain reconfiguration due to its large automotive market, competitive manufacturing base, skilled engineering talent and expanding ecosystem of automotive suppliers.

INDIAN ECONOMY OVERVIEW

The global environment remains fragile, with growth holding up better than expected but risks elevated amid intensifying geopolitical tensions, trade fragmentation and financial vulnerabilities. The impact of these shocks may still surface with a lag. Against this backdrop, Indias performance stands out. The First Advance Estimates place Financial Year 26 real GDP growth at 7.4 per cent and GVA growth at 7.3 per cent, reaffirming Indias status as the fastest-growing major economy for the fourth consecutive year.

Under the revised GDP estimation framework released by the Government of India, Indias real GDP growth for Financial Year 2025-26 is estimated at 7.6%, compared with 7.1% in Financial Year 2024-25. Nominal GDP is estimated to have grown by 8.6%. The revised estimates also indicate strong performance from the manufacturing sector, which recorded double-digit growth during Financial Year 2025-26.

The Economic Survey 2025-26 highlighted the resilience of the Indian economy, supported by consumption and investment, strengthening rural demand, infrastructure development, manufacturing activity and improving macroeconomic fundamentals.

The governments prudent fiscal management has strengthened credibility and reinforced confidence in Indias macroeconomic and fiscal framework. This led to three sovereign credit rating upgrades in 2025 - by Morningstar DBRS, S&P Global Ratings, and Rating and Investment Information (R&I), Inc.

Indias strong domestic consumption, infrastructure development, increasing manufacturing investment, improving connectivity and expanding participation in global supply chains provide a favorable foundation for medium- and long-term economic growth.

Key Growth Drivers

The principal structural drivers of Indias economic growth include:

- Strong domestic consumption;

- Infrastructure and capital expenditure;

- Manufacturing expansion;

- Increasing formalisation of economic activity;

- Digitalisation and technology adoption;

- Rising urbanisation and incomes;

- Expansion of global supply-chain opportunities; and

- Government initiatives supporting domestic manufacturing and investment.

These factors are expected to support continued growth in automotive demand and manufacturing activity.

India is primarily a domestic demand-driven economy, with consumption and investments contributing to 70% of the economic activity. With Indias economy showing resilient growth, supported by strong domestic demand, policy reforms, and a healthy investment pipeline, several new projects and developments are underway across key sectors. According to World Bank, India must continue to prioritise lowering inequality while also putting growth-oriented policies into place to boost the economy. Some of the key developments demonstrating Indias growth story are listed below:

- Indias industrial activity continued to expand during April-June Financial Year 27, with the Index of Industrial Production (IIP) increasing by 5.8% over the corresponding period of Financial Year 26. The manufacturing sector recorded a 6.3% growth during the period, while electricity and gas supply increased by 8.6%, supported by sustained industrial and economic activity. Water supply, sewerage and waste management also registered a 6.0% increase. The IIP grew by 7.3% year-on-year, with manufacturing output increasing by 7.8% and electricity and gas supply rising by 10.6%.

- Indias manufacturing sector remained in expansionary territory in July 2026, with the seasonally adjusted HSBC India Manufacturing Purchasing Managers Index (PMI) at 53.5, The index remained above the neutral 50-mark, indicating a continued improvement in overall manufacturing conditions, although the pace of expansion moderated. New orders and output continued to increase, supported by resilient demand, while new export orders rose at a faster rate, reflecting stronger international sales momentum.

- Indias consumer price inflation remained moderate in June 2026, with headline inflation based on the All-India Consumer Price Index (CPI) at 4.38% year-on-year, reflecting manageable price pressures across the economy. Rural inflation stood at 4.74%, while urban inflation was recorded at 3.92% during the month. Consumer Food Price Index (CFPI) based inflation stood at 5.32% in June 2026, with rural and urban food inflation at 5.45% and 5.09%, respectively.

- The government is focusing on renewable energy sources and has achieved a major clean energy milestone by generating 50% of its power from renewable sources, five years ahead of its 2030 target. India is committed to achieving its Net Zero Emissions ambition by 2070 through a five-pronged strategy, Panchamrit. Moreover, India ranked 3rd in the renewable energy country attractiveness index.

Indias economic outlook remains robust, supported by strong macroeconomic fundamentals, resilient domestic demand and sustained investment momentum. The economy continues to rank among the fastest-growing major economies globally, driven by broad-based expansion across manufacturing, services and infrastructure, alongside steady improvement in industrial and business activity.

A stable external position, supported by a manageable current account balance and consistent capital flows, reinforces confidence in Indias long-term growth trajectory. Despite evolving global uncertainties, investor interest remains intact across key sectors, backed by policy stability and structural growth drivers.

Domestic demand continues to act as a key anchor, supported by stable inflation, rising mobility and travel activity, healthy tax collections and strong participation from domestic institutional investors. Ongoing government initiatives to boost manufacturing, innovation, renewable energy and food security are further strengthening the foundation for sustained growth.

AUTOMOBILE SECTOR INDUSTRY

India continues to be one of the worlds major automotive markets and manufacturing bases.

The Indian automotive industry recorded a particularly strong performance during Financial Year 2025-26. According to the Society of Indian Automobile Manufacturers (SIAM), all major vehicle categories recorded their highest-ever annual domestic sales during Financial Year 2025-26.

Passenger vehicle sales reached 46.43 lakh units, representing growth of 7.9% over Financial Year 2024-25. Commercial vehicle sales reached 10.80 lakh units, registering growth of 12.6%. Three-wheeler sales reached 8.36 lakh units, growing by 12.8%, while two-wheeler sales reached 2.17 crore units, registering growth of 10.7%.

The industry also recorded strong export performance. Passenger vehicle exports reached 9.05 lakh units, growing 17.5%, while two-wheeler exports reached 51.8 lakh units, representing growth of 23.4%. Commercial vehicle exports also increased by 17.4%.

The performance reflects resilient domestic demand, improved affordability, supportive macroeconomic conditions, financing conditions and continued expansion of Indias automotive ecosystem.

Emerging Trends

The Indian automotive industry is undergoing a structural transformation driven by:

- Increasing penetration of electric vehicles;

- Growing preference for SUVs and utility vehicles;

- Increasing vehicle safety requirements;

- Stricter emission regulations;

- Technology-driven product differentiation;

- Greater localisation;

- Expansion of exports; and

- Increasing adoption of advanced manufacturing technologies.

The transition towards electric and hybrid mobility is expected to change the component mix over time, creating both opportunities and challenges for traditional powertrain component manufacturers.

The Indian automotive market is also undergoing a structural change in product mix. Utility Vehicles have become the dominant category within Passenger Vehicles, accounting for approximately 68% of Passenger Vehicle volumes in Financial Year 2026 and Q1 Financial Year 2026-27. The continued premiumisation of the vehicle market is expected to increase the value and technology content of components supplied per vehicle. [Source: SIAM/ICRA.]

At the same time, electrification is becoming an increasingly important component of the industrys long-term strategy. SIAM reported that registrations of electric Passenger Vehicles increased by more than 80% during Financial Year 2025-26. The transition is expected to create new opportunities in electric motors, transmission systems, thermal management, power electronics, lightweight components and other new-energy applications. [Source: SIAM.]

Accordingly, the Indian automotive industry is expected to remain a key growth sector for the Indian manufacturing economy, although the rate of growth may normalize in the near term.

AUTO COMPONENTS INDUSTRY:

The Indian auto-component industry recorded its highest-ever turnover during Financial Year 2025-26, reflecting the continued strengthening of Indias automotive manufacturing ecosystem.

According to the Automotive Component Manufacturers Association of India (ACMA), the industry recorded turnover of Rs 7,59,234 crore (US$85.9 billion)** during Financial Year 2025-26, representing growth of 12.7% over the previous year.

Supplies to OEMs increased by **16.3% to Rs 6,62,893 crore (approximately US$75 billion), supported by higher vehicle production and increasing localisation. The domestic aftermarket grew by approximately 9% to Rs 1,08,453 crore.

Auto-component exports increased by 5% to approximately US$24 billion**, with Europe emerging as the fastest-growing export market. Engine components and drive, transmission and steering systems together accounted for more than half of Indias component exports.

At the same time, component imports increased by approximately **13% to US$25.4 billion, reflecting demand for advanced technologies and specialised components. China, Japan and Germany remained among the leading sourcing markets.

The industry therefore moved into a trade deficit of approximately US$1.4 billion during Financial Year 2025-26, highlighting both the increasing technological content of vehicles and the opportunity for further localisation of advanced components.

Key Industry Drivers

The performance of the auto-component industry was supported by:

- Strong domestic vehicle production;

- Higher OEM demand;

- Increasing localisation;

- Investments in manufacturing capacity;

- Investments in technology and automation;

- Growth in exports;

- Increasing integration with global supply chains; and

- Rising demand for advanced automotive components.

ACMA has indicated that the industry is expected to grow by approximately 8?10% in Financial Year 2026-27, supported by domestic demand and exports, although geopolitical developments, commodity prices, logistics costs and supply-chain risks remain important considerations.

The Indian automotive component industry is entering a period of structural opportunity, supported by domestic vehicle growth, increasing localisation, global supply-chain diversification, technological advancement and Indias emergence as a global manufacturing and sourcing destination.

In the near term, industry growth is expected to moderate from the high growth witnessed during Financial Year 2025-26. However, the underlying structural drivers remain favourable.

SEGMENT WISE OR PRODUCT WISE PERFORMANCE

The Company works only in one segment i.e., manufacturing of sintered auto components.

CURRENT & FUTURE OUTLOOK

The medium- to long-term outlook for the Indian automotive component industry remains favourable, supported by Indias economic growth, expanding vehicle market, increasing manufacturing investments and growing global sourcing opportunities.

Supply-chain localisation

Global OEMs and Tier-1 suppliers are increasingly diversifying their sourcing base to improve supply-chain resilience. Indias established automotive ecosystem, competitive manufacturing costs and engineering capabilities provide an opportunity to increase Indias share in global automotive sourcing.

Global sourcing from India

Indias increasing integration with global automotive supply chains is creating opportunities for component manufacturers with globally acceptable quality, cost and delivery capabilities.

The continued growth in Indias component exports demonstrates the increasing acceptance of Indian suppliers in international markets.

Technology and advanced manufacturing

The automotive industry is increasingly moving towards higher technology content, automation, process monitoring and digital manufacturing.

Component manufacturers will therefore need to continuously invest in technology, engineering capabilities, automation and quality systems.

Electric and new-energy vehicles

The transition towards electric and hybrid vehicles is changing the component landscape.

While some conventional powertrain applications may face long-term structural pressure, new opportunities are emerging in electric motors, stators, transmission systems, thermal-management systems and other specialised applications.

ACMA reported that EV components, excluding lithium-ion batteries, accounted for approximately 4.6% of domestic OEM supplies during Financial Year 2025-26, indicating the gradual expansion of the EV component ecosystem.

OPPORTUNITIES AND THREATS

Opportunities

- The strong Financial Year 2025-26 performance of the Indian automotive industry provides a favorable demand environment for component manufacturers.

- The growing focus on localization provides opportunities for domestic component manufacturers to replace imported components. The increase in Indias component imports, particularly in advanced technologies, also highlights significant opportunities for further domestic value addition.

- Indias growing acceptance as an automotive manufacturing and sourcing destination provides opportunities to expand exports and participate in global customer programmes.

- The transition towards electric and hybrid mobility is creating new opportunities in components associated with electric drivetrains and related systems.

- The Companys initiatives relating to localisation of trapezoidal stator applications represent an example of its efforts to explore opportunities emerging from the changing mobility landscape.

- Potential to diversify into non-automotive sectors ? industrial machinery, appliances, medical devices, aerospace, and defence.

Threats

- Changes in vehicle production volumes, customer schedules or consumer demand may affect demand for the Companys products.

- Steel, metal powders and other raw materials constitute significant inputs. Volatility in raw-material prices may affect margins.

- The Companys business is linked to major automotive customers. Changes in customer sourcing strategies, vehicle platforms or production volumes may affect business performance.

- Geopolitical tensions, trade restrictions, tariffs and supply-chain disruptions may affect customers, suppliers and export opportunities.

RISKS AND CONCERNS:

In accordance with the SEBI Listing Regulations, the Board of Directors of the Company is responsible for framing, implementing and monitoring the risk management plans of the Company. The Company does identify risks associated with the Company, assess its impact and take appropriate corrective steps to minimize the risks that may threaten the existence of the Company from time to time.

In the natural course of business, we evaluate emerging threats and risks and take mitigation measures to counter them. In the last few years, we have strategically invested in digitalising all business processes. Real-time data availability helps streamlines processes, ensures accurate decision-making, and reduces costs. It has also helped generate automated alerts, ensuring business risks were identified early and acted upon swiftly. There are several possible risks on the horizon, both global and domestic level. In India, rural recovery continues to be slow, and this significantly impacts the growth trajectory of the economy. Excessive heat in the recent past has impacted the market demand. Less than normal monsoon may also lead to a weaker performance of the rural agricultural sector impacting the already weakened rural demand. Further the economic recovery could be hampered due to any increase in oil & gas price. The above stated factors can create disruption to an already fragile global trade & supply chain situation, increased inflation, and dampen the demand.

The Board has established a Risk Management Policy which formalizes the Companys approach to overview and manages material business risks. The policy is implemented through a top down and bottom-up approach for identifying, assessing, monitoring and managing key risks across the Companys business units. Companys risk management framework is well embedded and continually reviewed by the Board. The Board is satisfied that there are adequate systems and procedures in place to identify, assess, monitor and manage risks. The Audit Committee also reviews reports by members of the management team and recommends suitable action. Risk Mitigation Policy has been approved by the Board.

Risk Mitigation

Sintercom India Ltd. operates in a dynamic business environment where technological shifts, competitive pressures, and market cycles present multiple challenges. The Company has instituted a proactive risk management framework to identify, assess, and mitigate these risks effectively.

- With faster-than-expected adoption of electric vehicles potentially reducing demand for ICE-related sintered parts, the Company is actively diversifying its product portfolio. It is developing new sintered solutions for EV drivetrains, e-motors, braking ensuring long-term relevance.

- To mitigate risks from domestic and global competitors, Sintercom is focusing on innovation, quality, and cost efficiency. The Company leverages its powder metallurgy expertise to deliver near-net-shape precision components while investing in R&D and process automation to strengthen its technology edge.

- Recognizing the inherent cyclicality of the automotive sector, the Company is pursuing diversification into non-automotive industries such as industrial machinery, consumer appliances, medical devices, and aerospace. This strategy reduces dependency on passenger vehicle demand alone.

- To address uncertainties in global trade, tariffs, or supply chain disruptions, the Company is expanding its customer base across multiple geographies and markets. This geographic diversification lowers exposure to any single region while strengthening long-term global relationships.

- The Company manages input cost fluctuations through a combination of localization of raw material sourcing, long-term supplier partnerships, and cost optimization measures. These initiatives help stabilize margins despite commodity price swings.

- To counter risks of competitors adopting advanced technologies, Sintercom is exploring new materials, additive manufacturing techniques, and collaborations with global technology partners. Continuous upskilling of its technical team ensures the Company remains future-ready.

Through this structured approach, Sintercom aims to build resilience, sustain profitability, and create long-term stakeholder value even amid industry transitions and external uncertainties.

Internal Control Systems and their Adequacy

The Companys internal control systems are commensurate with the nature of its business and the size and complexity of its operations. Given the changing needs, the Company has deepened the focus on the function and enhanced the scope of the internal audit department and included areas establishing corporate governance policy, internal control framework, conducting internal audits, management audits, IT audits, drafting and implementing policies and procedures, complying with environmental laws, reviewing and reporting of statutory compliances.

The Company has a proper and adequate system of internal controls. This ensures that all transactions are authorized, recorded and reported correctly, and assets are safeguarded and protected against loss from unauthorized use or disposition. In addition, there are operational controls and fraud risk controls, covering the entire spectrum of internal financial controls. An extensive program of internal audits and management reviews supplements the process of internal financial control framework. Properly documented policies, guidelines and procedures are laid down for this purpose. The internal financial control framework has been designed to ensure that the financial and other records are reliable for preparing financial and other statements and for maintaining accountability of assets. In addition, the Company has identified and documented the risks and controls for each process that has a relationship to the financial operations and reporting.

COMPANY AND PERFORMANCE OVERVIEW:

Your Company recorded net sales of Rs. 1007 mn in Financial Year 2025 26, against Rs. 900 mn in the previous year, registering a 11.84 per cent year-on-year growth. Sales growth was driven by an uptick in volumes from our major customers and new product receiving serial production approvals from customers. Profit before depreciation, finance cost and tax expenses (EBITDA) grew to Rs.175mn from Rs.148 mn, representing an EBITDA margin of 17.4 per cent in Financial Year 2025-26 thus registering a growth of 90 bps. The profit before tax for the year was Rs. 27 mn compared with Rs. 15 mn in the previous year registering an increase by around 70 bps.

Your Company continues to maintain a robust partnership with all its customer OEMs by consistently delivering high-quality innovative products. Company is also focusing on diversifying its product portfolio into new markets, new products and new technologies. We continue to focus on new technologies enabling the company to stay ahead of the competition.

DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PRECEDING FINANCIAL YEAR) IN KEY FINANCIAL RATIOS ALONG WITH DETAILED EXPLANATIONS THEREFOR AS REQUIRED VIDE PART B OF SCHEDULE V TO SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) (AMENDMENT) REGULATIONS, 2018:

Sr. No.	Particulars	Year Ended 31st March, 2026	Year Ended 31st March, 2025	Variance %
1	Current ratio	1.75	1.69	4%
2	Debt - Equity ratio	0.55	0.52	9%
3	Debt Service coverage ratio	1.68	1.61	4%
4	Return on Equity ratio	0.02	0.01	%
5	Inventory Turnover ratio	2.67	2.75	-34%
6	Trade Receivables turnover ratio	2.04	2.38	-24%
7	Trade Payables Turnover	2.82	2.76	-23%
8	Net Capital Turnover	2.00	2.20	-10%
9	Net Profit/(loss) Margin	1.42%	0.74%	-92%
10	Return in Capital Employed	11.51%	10.24%	-12%
11	Interest Coverage Ratio	3.30	3.04	8%
12	Operating Margin Ratio	8%	7%	12%

*Earnings for Debt Service = Earnings before finance costs, depreciation and amortization, exceptional items and tax (EBITDA)/ (Finance cost for the year + Principal repayment of long-term debt liabilities within one year.

**Cost of Good sold = Cost of materials consumed + Changes in inventories of finished goods, stock-intrade, work-in-progress + Manufacturing and operating expenses

#Working Capital = Current Assets - Current Liabilities

##Earnings before Interest and Tax = Profit after exceptional item and before tax + Finance costs (recognized)

$Capital Employed = Average of equity and total borrowings

Details of significant changes are as below -

a) Debt Equity ratio (times): Increase in the ratio is mainly on account of increase in long term borrowing by the Company during the previous year, as compared to previous year.

b) Net Capital Turnover Ratio: Decrease in the ratio by 40% due to increase in net working capital during the year as compared to previous year mainly due to increase in inventory and receivables.

c) Net Profit/(Loss) Margin (%): Decrease in the current year due to decrease in profitability during the year as compared to previous year.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED:

As a Company, we focus on fostering a culture of transparency and meritocracy for our employees. We also emphasise driving excellence through optimal organisational structures, HR systems, processes, and policies. Our commitment to our human resources drives all our developmental initiatives. We also empower our employees and workers to reach their full potential, challenging them to exceed their expectations. We aim to create a work environment and experience where individual skills and contributions are valued.

During the year, the focus of the leadership team and the management team was on development of employees at each of the level. To build a sustainable talent pipeline, Sintercom has partnered with local engineering colleges to launch a Specialized Apprenticeship Program. This program offers hands-on industrial training on sintering processes and quality systems, with placement opportunities for top interns. This has helped strengthen employer branding and ensure skills alignment with Company needs. Sintercom initiated a targeted recruitment drive and workplace inclusion plan to improve gender diversity on the shop floor and in technical roles. As of Financial Year 2025–26, women now constitute 10% of the workforce (up from 8% a year ago).

Various initiatives have been taken which includes formal and informal ways of interaction with the employees of each level directly with the top management. Trainings and skill development has been an integral part of the human resource function. During the year, the importance was also laid down on the importance of employees safety at work and outside. Various competition were conducted within the organization on the safety. The total number of employees of the Company as of 31 March 2026 was 76.

The Company has not had any work stoppages or cessions owing to labour disputes. The Company continues to lay great emphasis on Safety and Security. To ensure adherence to safety protocols, the company follows stringent procedures to safeguard and protect its workforce. The company also keeps prescribing policies and procedures while imparting training to its workforce. It has a system in place that promotes a positive work environment free of all forms of harassment. We thank all our employees for their sincere contributions to the Companys performance and growth.

These initiatives reinforce Sintercoms focus on building a future-ready, skilled, and engaged workforce—critical for navigating technological transitions and accelerating growth. Robust industrial relations and worker welfare contribute to operational stability and productivity, while Learning & Development and diversity efforts strengthen employer branding and retention. Together, these HR measures underpin the Companys ambition to scale, innovate, and excel in sintered manufacturing—within both automotive and emerging non-auto sectors.

ESG and Sustainability

Sustainability remains an integral part of the Companys long-term approach to business.

The Company continues to focus on resource efficiency, energy conservation, material optimisation and reduction of its environmental footprint.

Key focus areas include:

- Energy efficiency;

- Reduction in greenhouse-gas emissions;

- Renewable-energy opportunities;

- Water conservation;

- Waste reduction and recycling;

- Responsible utilisation of raw materials;

- Employee health and safety; and

- Compliance with environmental regulations.

The Company continues to evaluate opportunities for reducing its carbon footprint through energy-efficiency and process-improvement initiatives

Outlook for Sintercom:

The medium- to long-term outlook for Sintercom remains positive, supported by Indias automotive growth, increasing localisation, global sourcing opportunities and the Companys capabilities in powder metallurgy.

The Companys key strategic priorities going forward will include:

1. Strengthening the core business through improved quality, delivery and customer service;

2. Improving profitability through productivity and cost-reduction initiatives;

3. Developing new products and applications leveraging the Companys powder-metallurgy capabilities;

DISCLOSURE OF ACCOUNTING TREATMENT

The Accounting treatment of your Company in the preparation of financial statements is in consonance with the Indian Accounting Standards 2015 (Ind AS) as amended and there is no deviation in the accounting treatment, different from the said Ind AS

Note:

For sake of brevity the items covered in Boards Report are not repeated in the Management Discussion and Analysis Report.

Cautionary Statement:

Certain Statements in the Management Discussion and Analysis describing the companys objectives, projections, estimates and expectation or predictions may be forward looking statements within the meaning of applicable laws and regulations. It cannot be guaranteed that these assumptions and expectations are accurate or will be realized. Actual results could differ from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand/supply and price conditions in the domestic markets, changes in the Government Regulations, tax laws and other statues and incidental factors

FOR AND ON BEHALF OF THE BOARD

For SINTERCOM INDIA LIMITED

Hari Nair

Chairperson

DIN: 00471889

Pune, 15th May, 2026

Regd. Office: Gat No. 127,

At Post Mangrul, Tal-Maval,

Talegaon Dabhade, Pune 410 507