SpectraA Technology Solutions Ltd Management Discussions

MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS

The following discussion and analysis of our financial position and results of operations for the financial years ended on March 31, 2026, March 31, 2025 and March 31, 2024 is based on, and should be read in conjunction with, our Restated Consolidated Financial Statements, including the schedules, notes and significant accounting policies thereto, included in the chapter titled "Restated Consolidated Financial Statements" beginning on page 243 of this Red Herring Prospectus. Our Restated Consolidated Financial Statements have been derived from our Consolidated audited financial statements and restated in accordance with the SEBI ICDR Regulations and the ICAI Guidance Note.

You should read the following discussion of our financial position and results of operations together with our Restated

Consolidated Financial Statements included in this Red Herring Prospectus. You should also read the section titled "Risk Factors" beginning on page 20 of this Red Herring Prospectus, which discusses a number of factors, risks and contingencies that could affect our financial condition and results of operations. Our fiscal year ends on March 31 of each year, so all references to a particular fiscal year are to the twelve-month period ended March 31 of that year.

In this section, unless the context otherwise requires, any reference to "we", "us" or "our" or "our Company" refers to

SpectraA Technology Solutions Ltd. Unless otherwise indicated, financial information included herein are based on our

"Restated Consolidated Financial Statements" for the financial years ended on March 31, 2026, March 31, 2025 and March 31, 2024 included in this Red Herring Prospectus beginning on page 243 of this Red Herring Prospectus.

Note: Statement in the Management Discussion and Analysis Report describing our objectives, outlook, estimates, expectations or prediction may be "Forward Looking Statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to our operations include, among others, economic conditions affecting demand/supply and price conditions in domestic and overseas market in which we operate, changes in Government Regulations, Tax Laws and other Statutes and incidental factors.

BUSINESS OVERVIEW

Our Company, SpectraA Technology Solutions Limited, was incorporated as a private company on January 20, 2009 in Bengaluru and converted to a public limited company on February 01, 2021. We provide engineering, designing, fabrication, installation, commissioning and decommissioning greenfield and brownfield projects across various industries which include, Breweries (Craft and Microbreweries), Distilleries, Food and Beverages, Malt Spirit and Blending, Extraction Plants, FMCG (Fast Moving Consumer Goods) and Pharmaceuticals. We undertake projects with full responsibility from design to handover, build key equipment in-house, use standardized modules and appropriate designs, and deploy project teams across client sites, which helps us deliver on schedule, cut rework, and control costs.

Over the last 16 years, we have built systems compliant with ISO 9001:2015 to design, develop, fabricate and expand various process plants which are customized to customer specifications. Our scope covers entire spectrum i.e., engineering, fabrication, installation, commissioning and decommissioning across various industries, which include, Breweries (Craft and Microbreweries), Distilleries, Food and Beverages, Malt Spirit and Blending, Extraction Plants, FMCG (Fast Moving Consumer Goods) and Pharmaceuticals. We also provide operator training and operations and maintenance (O&M) support.

We have two manufacturing facilities located at Bengaluru and Jaipur with an aggregate built up area of 33,214.75 square feet. We strengthen delivery reliability by dual-sourcing critical items and building local vendor bases around both hubs, aligning procurement with engineering and site schedules to support staged and split dispatches.

For further details, please refer chapter titled "Our Business" beginning on page 164 of this Red Herring Prospectus.

SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO THE LAST AUDITED PERIOD i.e., MARCH 31, 2026

In the opinion of the Board of Directors of our Company, since the date of the last audited period in this Red Herring Prospectus, there have not arisen any circumstance that materially or adversely affect or are likely to affect the profitability of our Company or the value of its assets or its ability to pay its material liabilities within the next twelve months.

SIGNIFICANT FACTORS AFFECTING OUR RESULTS OF OPERATIONS

Our business is subjected to various risks and uncertainties, including those discussed in the section titled "Risk Factors" beginning on page 20, of this Red Herring Prospectus. Our Companys future results of operations could be affected potentially by the following factors:

1. We derive a significant portion of our revenue from limited number of customers. The loss of any customer, the deterioration of their financial condition or prospects, or a reduction in their demand for our products could adversely affect our business, results of operations, financial condition and cash flows.

2. We depend on a limited number of suppliers for our raw materials, and any disruption in supply or adverse change in supply terms it may materially affect our business.

3. Trade Receivables form a substantial part of our current assets. Failure to manage our trade receivables could have an adverse effect on our net sales, profitability, cash flow and liquidity. Further, we are also exposed to the risk of delays or non-payment by our clients and other counterparties, which may also result in cash flow mismatches.

4. We are unable to locate the Consent to Establish for our manufacturing unit at Jaipur and any inability to comply with applicable environmental laws may expose us to regulatory action and could adversely affect our business, financial condition and results of operations.

5. Our revenues are significantly dependent on certain geographical regions, and any adverse developments in these regions could adversely impact our business, financial condition and results of operations.

SIGNIFICANT ACCOUNTING POLICIES

For Significant accounting policies please refer Significant Accounting Policies (Note 1), beginning under "Restated Consolidated Financial Statements" on page 243 of this Red Herring Prospectus. Set out below are a few key performance indicators

Financial Key Performance Indicators of our Company

( in Lakhs)

Particulars	Unit	March 31, 2026	March 31, 2025	March 31, 2024
Revenue from Operations (1)	( in lakhs)	10,116.21	7,516.62	8,896.17
Growth in Revenue from Operations (2)	(YoY%)	34.58%	(15.51)%	(13.72)%
Gross Profit (3)	( in lakhs)	4,757.69	3,617.09	2,920.94
Gross Profit Margin (4)	(%)	47.03%	48.12%	32.83%
EBITDA (5)	( in lakhs)	1,926.42	1,013.33	447.59
EBITDA Margin (6)	(%)	19.04%	13.48%	5.03%
Profit After Tax (7)	( in lakhs)	1,155.71	491.43	200.45
PAT Margin (8)	(%)	11.42%	6.54%	2.25%
RoCE (9)	(%)	37.61%	31.92%	20.55%
RoE (10)	(%)	60.95%	46.14%	27.92%
Return on Assets (11)	(%)	10.87%	4.91%	3.01%
Net Fixed Asset Turnover (12)	(in times)	4.98	9.13	10.34

The above figures have been certified by our Statutory Auditors Bhojak Lunawat & Company, Chartered Accountants pursuant to their certificate dated March 13, 2026 and September 08, 2026

Notes:

(1) Revenue from Operations means the Revenue from Operations as appearing in the Restated Consolidated Financial Statements.

(2) Growth in revenue from operations(yoy%) is calculated by subtracting the previous periods revenue from the current periods revenue, and then dividing that number by the previous periods revenue (3) Gross Profit is the Revenue from Operations of the Company as reduced by the cost of materials consumed and Changes in Inventories of finished goods, work in progress and stock-in-trade (4) Gross Profit Margin (%) is Gross Profit divided by Revenue from Operations (5) EBITDA is calculated as Profit before tax + Depreciation + Interest Cost - Other Income

(6) EBITDA Margin is calculated as EBITDA divided by Revenue from Operations (7) Profit After Tax (PAT) is calculated as Profit before tax Tax Expenses.

(8) PAT Margin is calculated as PAT for the year divided by revenue from operations.

(9) Return on Capital Employed (ROCE) is calculated as EBIT divided by capital employed, which is defined as shareholders equity plus total borrowings deducted by intangible assets.

(10) Return on Equity (ROE) is ratio of Profit after Tax and average Shareholder Equity (11) Return on Assets (ROA) is equal to PAT / total assets deployed

(12) Net Fixed Asset Turnover is equal to net revenue from operations/total fixed assets. Fixed assets include property, plant & equipment.

Operating KPIs Monitored by the Company

In addition to the financial KPIs mentioned above, we also monitor the following operational metrics to assess our business performance and identify areas for improvement, with the aim of optimizing both revenue (top line) and profitability (bottom line):

Orderbook Bifurcation Industry-wise

( in Lakhs)

	Fiscal 2026		Fiscal 2025		Fiscal 2024
	Amount		Amount (		Amount
Particulars		% of Total		% of Total		% of Total
	( in		in		( in
		Orderbook		Orderbook		Orderbook
	Lakhs)		Lakhs)		Lakhs)
Commercial Brewery Equipment	8,984.82	88.39%	7,597.31	75.38%	5,145.89	69.06%
Distillery Equipment	787.16	7.74%	678.45	6.73%	473.24	6.35%
Food and Beverages Plants	210.00	2.07%	228.30	2.27%	203.09	2.73%
Microbrewery Equipment	176.19	1.73%	637.89	6.33%	853.67	11.46%
Malt Spirit Equipment	-	-	820.43	8.14%	662.57	8.89%
Extraction Plant	-	-	115.73	1.15%	112.61	1.51%
Others	6.79	0.07%	-	-	-	-
Total	10,164.96	100.00%	10,078.13	100.00%	7,451.07	100.00%

Orderbook Bifurcation Statewise

	Fiscal 2026		Fiscal 2025		Fiscal 2024
Particulars	Amount (	% of Total	Amount (	% of Total	Amount (	% of Total
	in Lakhs)	Orderbook	in Lakhs)	Orderbook	in Lakhs)	Orderbook
Karnataka	135.54	1.33%	1,768.50	17.55%	1,449.69	19.46%
Goa	21.58	0.21%	176	1.75%	851.25	11.42%
Himachal Pradesh	19.73	0.19%	396.07	3.93%	0.59	0.01%
Madhya Pradesh	1,007.16	9.91%	704.72	6.99%	220.66	2.96%
Uttar Pradesh	1,091.48	10.74%	853.14	8.47%	397.6	5.34%
Maharashtra	531.51	5.23%	714.59	7.09%	204.16	2.74%
West Bengal	588.47	5.79%	181.48	1.80%	0	0.00%
Others	1,044.12	10.27%	4,493.96	44.59%	3,011.52	40.42%
Domestic	4,439.58	43.68%	9,288.45	92.16%	6,135.47	82.34%
Nepal	183.58	1.81%	173.88	1.73%	90.49	1.21%
Bhutan	-	0.00%	403.8	4.01%	399	5.35%
Others	5,541.81	54.52%	212	2.10%	826.11	11.09%
International	5,725.39	56.32%	789.68	7.84%	1,315.60	17.66%
Total	10,164.96	100.00%	10,078.13	100.00%	7,451.07	100.00%

As certified by Statutory Auditor of our Company, M/s Bhojak Lunawat and Company, Chartered Accountants, by way of their certificate dated March 13, 2026 and September 08, 2026.

DETAILS OF THE REVENUE RECOGNITION METHOD ADOPTED BY THE ISSUER AND ITS BASIC

PARAMETERS

Revenue is recognized to the extent, that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured.

Revenue from sale of goods

Revenue from sale of goods is recognized when the significant risks and rewards of ownership of the goods are transferred to the buyer and are recorded net of trade discounts, rebates, Sales Tax, Value Added Tax, Goods and Service Tax and gross of Excise Duty.

Revenue from services

Revenue from services is recognized pro-rata over the period of the contract as and when services are rendered and the collectability is reasonably assured. The revenue is recognized net of Goods and service tax.

COMPONENTS OF INCOME AND EXPENDITURE

Total Revenue

Our total revenue is divided into revenue from operations and other income.

- Revenue from operations consists of Sale of Products, Sale of Services and Other Operating Revenue which includes Sale of Scrap.

- Other income consists of Interest on Income, Foreign Fluctuation Income, Liabilities no longer required and Other Income.

Total Expenses

Our total expenses consist of Cost of Material Consumed, Changes in Inventories of Work-In-Progress, Employee Benefit Expenses, Finance Costs, Depreciation and Amortization Expenses and Other Expenses.

Cost of materials consumed

Cost of materials consumed includes opening stock of raw material plus purchase of raw materials and consumables less closing stock of raw materials.

Changes in Inventories of Work-in-Progress

Changes in Inventories of Work-in-Progress and Finished Goods includes inventories at the beginning of the year deducted by inventories at the end of the year.

Employee benefits expenses

Employee Benefit Expenses include Salaries, Wages and Bonus, Director Remuneration, Contribution of Provident Funds and other funds, Gratuity Expenses and Staff Welfare Expenses.

Finance Costs

Finance costs include Interest Expenses (paid to Bank and paid to others) and other borrowing costs.

Depreciation and Amortization Expenses

Depreciation and amortization expenses comprise of Depreciation on property, plant & equipment, and Amortization of intangible assets.

Other Expenses

Other expenses include

Other expenses majorly include Travelling and Conveyance Expenses, Repair and Maintenance Charges, Rent, Rates and Taxes, Power and Fuel Expenses, Freight Charges including loading, packing, Professional/Consulting Fees, Security Expenses, Printing and Stationery, Insurance Expenses etc.

RESULTS OF OPERATION

The following discussion on results of operations should be read in conjunction with the Restated Consolidated Financial Statements of our Company for the financial years ended March 31, 2026, March 31, 2025, and March 31, 2024.

				( In Lakhs except percentages)
Particulars	Fiscal 2026 ( )	% of Total Income	Fiscal 2025 ( )	% of Total Income	Fiscal 2024 ( )	% of Total Income
A. Revenue
Revenue from Operations	10,116.21	98.17%	7516.62	99.52%	8896.17	99.20%
Other Income	188.29	1.83%	36.44	0.48%	71.73	0.80%
Total Income	10,304.50	100.00%	7553.06	100.00%	8967.90	100.00%
B. Expenses
Cost of Materials Consumed	5,101.39	49.51%	4024.19	53.28%	5774.94	64.40%
Changes in Inventories of work-in- progress	257.13	2.50%	(124.66)	(1.65)%	200.29	2.23%
Employee benefits expense	1,605.28	15.58%	1616.80	21.41%	1696.23	18.91%
Finance costs	396.15	3.84%	216.25	2.86%	176.87	1.97%
Depreciation and Amortisation Expense	170.90	1.66%	83.87	1.11%	59.72	0.67%
Other Expenses	1,225.99	11.90%	986.96	13.07%	777.12	8.67%
Total Expenses	8,756.84	84.98%	6803.42	90.08%	8685.17	96.85%
Profit Before Exceptional and Extraordinary Items and Tax	1,547.66	15.02%	749.64	9.92%	282.73	3.15%
Exceptional Items	-	-	-	-	-	-
Profit Before Extraordinary Items and Tax	1,547.66	15.02%	749.64	9.92%	282.73	3.15%
Extraordinary Items	-	-	-	-	-	-
Profit Before Tax	1,547.66	15.02%	749.64	9.92%	282.73	3.15%
Tax Expense:
(1) Current tax	401.66	3.90%	231.19	3.06%	77.61	0.87%
(2) Prior Period Tax	-	-	0.50	0.01%	0.00	0.00%
(3) Deferred tax	(9.71)	(0.09)%	26.52	0.35%	4.67	0.05%
Profit for the period	1155.71	11.22%	491.43	6.51%	200.45	2.24%

COMPARISON OF FINANCIAL YEAR ENDED MARCH 31, 2026 WITH FINANCIAL YEAR ENDED MARCH 31, 2025.

Components of Balance Sheet

( in Lakhs except percentage)

Particulars	Fiscal 2026	Fiscal 2025	Increase/Decrease	% increase/decrease
Long-term Borrowings	1,310.27	375.57	934.70	248.88%
Deferred Tax Liabilities (Net)	16.75	26.45	(9.71)	(36.70)%
Long Term Provisions	97.61	59.13	38.48	65.08%
Short Term Borrowings	1,386.09	1,345.32	40.76	3.03%
Trade Payables	3,420.59	2,829.42	591.17	20.89%
Other Current Liabilities	1,881.97	4,024.29	(2,142.32)	(53.23)%
Short-term Provisions	19.14	14.00	5.14	36.74%
Property, Plant and Equipment	2,033.02	823.07	1,209.96	147.01%
Intangible Assets	8.57	6.61	1.96	29.64%
Capital Work-in-Progress	-	125.07	(125.07)	(100.00)%
Non-Current Investments	12.07	351.36	(339.29)	(96.56)%
Inventories	1,030.64	1,529.43	(498.80)	(32.61)%
Trade Receivables	4,446.70	4,286.30	160.40	3.74%
Cash and Cash Equivalents	543.89	52.14	491.75	943.18%
Short-term Loans and Advances	2,534.81	2,799.94	(265.13)	(9.47)%
Other Current Assets	19.14	25.81	(6.67)	(25.85)%

Long-Term Borrowings

Long-term borrowings increased from 375.57 lakhs in FY 2025 to 1,310.27 lakhs in FY 2026. The increase was primarily due to additional term loans availed during the year to fund capital expenditure loan against Purchase of building amounting to 880 Lakhs, and increase in unsecured term loans amounting to 231.33 lakhs in FY 2026. The total additions to other assets amounted to 66.53 Lakhs in FY 2026.

Deferred Tax Liabilities (net)

Deferred Tax Liabilities (Net) decreased from 26.45 Lakhs in FY 2025 to 16.75 Lakhs in FY 2026. The decrease was primarily on account of difference between book value of Depreciable Assets as per Books of Account and WDV as per Income Tax Purposes, Impact of Gratuity Provisions and Provision of Bonus.

Long-Term Provisions

Long-term provisions increased from 59.13 lakhs in FY 2025 to 97.61 lakhs in FY 2026. The increase was only on account of provision for gratuity for FY 2026.

Short-Term Borrowings

Short-term borrowings increased by 3.03% from 1,345.32 Lakhs in FY 2025 to 1,386.09 Lakhs in FY 2026. The increase is in line with the increased business operations during the year.

Trade Payables

Trade payables increased from 2,829.42 Lakhs in FY 2025 to 3,420.59 Lakhs in FY 2026. The Company achieved net sales of 4,380.60 Lakhs during the period January 2026 to March 2026 i.e., the last quarter of the year. Purchases were also done in line to achieve the above sales and most of it remained outstanding as on March 31, 2026 thereby reflecting a higher outstanding as on the balance sheet date.

Other Current Liabilities

Other current liabilities decreased from 4,024.29 Lakhs in FY 2025 to 1,881.97 Lakhs in FY 2026. The decrease was primarily driven by a decline in advances from customers from 3,556.90 Lakhs in FY 2025 to 982.01 Lakhs in FY 2026. This was partly offset by an increase in statutory dues payable from 179.01 Lakhs in FY 2025 to 400.27 Lakhs in FY 2026, increase in current tax liabilities (net) from 213.27 Lakhs in FY 2025 to 394.03 Lakhs in FY 2026 in line with improved operations, and an increase in employee-related payables from 75.11 Lakhs in FY 2025 to 105.66 Lakhs in FY 2026.

Short-Term Provisions

Short-term provisions increased from 14.00 Lakhs in FY 2025 to 19.14 Lakhs in FY 2026. The increase was primarily on account of provision for CSR aggregating to 4.10 lakhs in FY 2026.

Property, Plant and Equipment

Property, plant and equipment increased from 823.07 Lakhs in FY 2025 to 2,033.02 Lakhs in FY 2026. The net increase in gross block was due to the addition to building amounting to 1,316.28 Lakhs and other assets amounting to 59.54 Lakhs in

FY 2026.

Intangible Assets

Intangible Assets increased from 6.61 Lakhs in FY 2025 to 8.57 Lakhs in FY 2026. The increase of 1.96 Lakhs reflects capitalization of new computer software, net of amortization expenses.

Non-Current Investments

Non-Current Investments decreased from 351.36 Lakhs in FY 2025 to 12.07 Lakhs in FY 2026. The decrease was primarily due to redemption of fixed deposits amounting to 339.29 Lakhs during the year.

Inventories

Inventories decreased from 1,529.43 Lakhs in FY 2025 to 1,030.64 Lakhs in FY 2026. The Company achieved net sales of 4,380.60 Lakhs during the period January 2026 to March 2026 i.e., the last quarter of the year. The Companys objective to optimize the inventory level was in line with the above sales. This resulted in higher utilization of inventory towards execution of the Companys order book during the year, reflecting efficient inventory management.

Trade receivables

Trade receivables decreased from 4,286.30 Lakhs in FY 2025 to 4,446.70 Lakhs in FY 2026. The trade receivable days improved significantly from 178 days in FY 2025 to 152 days in FY 2026, reflecting improved collection efficiency and better working capital and operations management during the year.

Cash and Cash Equivalents

Cash and cash equivalents increased by 491.75 Lakhs from 52.14 Lakhs in FY 2025 to 543.89 Lakhs in FY 2026, primarily on account of increase in deposits held as margin money (i.e., FD marked as lien against borrowings and LC) by 487.42 lakhs.

Short Term Loans and Advances

Short-term loans and advances decreased by 9.47% from 2,799.94 Lakhs in FY 2025 to 2,534.81 Lakhs in FY 2026. The decrease was primarily due to a reduction in the following:

a) advances to vendors by 8.39% from 2,452.54 Lakhs in FY 2025 to 2,246.69 Lakhs in FY 2026 b) advance to employees by 84.05% from 25.63 Lakhs in FY 2025 to 4.09 Lakhs in FY 2026 c) loans and advances to related parties by 10.77% from 256.36 Lakhs in FY 2025 to 228.76 Lakhs in FY 2026 d) security deposits by 72.64% from 65.41 lakhs in FY 2025 to 17.89 lakhs in FY 2026

This was partly offset by other advances relating to IPO related expenses amounting to 37.37 Lakhs which was incurred during the year.

Other Current Assets

Other current assets decreased from 25.81 Lakhs in FY 2025 to 19.14 Lakhs in FY 2026. The decrease was primarily due to the following factors:

a) reduction in prepaid expenses by 21.73% from 8.00 Lakhs in FY 2025 to 6.26 Lakhs in FY 2026 b) reduction in bank deposits with original maturity of more than three but less than twelve months by 29.16% from

15.82 Lakhs in FY 2025 to 11.21 Lakhs in FY 2026 c) decrease in balance with government authorities by 16.16% from 1.99 Lakhs in FY 2025 to 1.67 Lakhs in FY 2026.

Components of Profit and Loss Income

( in Lakhs except percentage)

Particulars	Fiscal 2026	Fiscal 2025	Increase/Decrea se	% increase/decrea se
Total Income	10,304.50	7,553.06	2751.43	36.43%
Revenue from Operations	10,116.21	7,516.62	2599.59	34.58%
Other Income	188.29	36.44	151.85	416.72%
Cost of goods sold	5,358.52	3,899.53	1,458.99	37.41%
Employee Benefit Expenses	1,605.28	1,616.80	(11.53)	(0.71)%
Finance Costs	396.15	216.25	179.89	83.19%
Depreciation and Amortization Expenses	170.90	83.87	87.02	103.76%
Other Expenses	1,225.99	986.96	239.03	24.22%
Total Expenses	8,756.84	6,803.42	1,953.42	28.71%
Profit Before Tax	1,547.66	749.64	798.02	106.45%
Tax Expenses	391.95	258.21	133.73	51.79%
Profit After Tax	1,155.71	491.43	664.29	135.18%

Total Income

Total income increased by 36.43% from 7,553.06 Lakhs in FY 2025 to 10,304.50 Lakhs in FY 2026 which was in line with the increase in revenue from operations.

Revenue from Operations

Revenue from operations increased by 34.58% from 7,516.62 Lakhs in FY 2025 to 10,116.21 Lakhs in FY 2026. This is because of the following reasons:

1) Revenue from New Customers:

During the FY 2026, while the Company continued to receive orders from existing clients, at the same time, the Company acquired new customers as well. Few big orders which helped to achieve higher revenue during the financial year is enumerated below:

Name	FY 2026 ( in Lakhs)
Customer-1	1,518.55
Customer-2	620.53
Customer-3	522.88
Customer-4	344.00
Customer-5	283.73
Total	3,289.69

As per the certificate dated September 08, 2026 issued by Bhojak Lunawat & Co., Chartered Accountants.

2) Marginal decrease in Gross Margin from 48.12% in FY 2025 to 47.03% in FY 2026 due to the increase in raw material prices in the month of February 2026 and March 2026 due to geopolitical conditions which was temporary in nature.

Other Income

Other income increased by 151.85 Lakhs from 36.44 Lakhs in FY 2025 to 188.29 Lakhs in FY 2026, primarily on account of foreign exchange fluctuation gain of 151.57 Lakhs recorded in FY 2026, increase in interest income by 7.56 lakhs in FY 2026 and decrease in liabilities no longer required amounting to 8.70 Lakhs.

Expenditure

Total Expenses

Total expenses increased from 6,803.29 Lakhs in FY 2025 to 8,756.84 Lakhs in FY 2026, primarily due to increase in cost of goods sold, finance costs, depreciation and amortization costs and other expenses, accompanied by a marginal decrease in employee benefit expenses.

Cost of Goods sold

Cost of goods sold comprises of cost of materials consumed and changes in inventories. Our cost of goods sold increased from

3,899.54 Lakhs in FY 2025 to 5,358.52 Lakhs in FY 2026.

The increase was primarily attributable to the following reasons: i. Increase in revenue from operations by 34.58% from 7,516.62 Lakhs in FY 2025 to 10,116.21 Lakhs in FY 2026 ii. Marginal decrease in Gross Margin from 48.12% in FY 2025 to 47.03% in FY 2026.

Assuming if there was no change in gross margin in FY 2026, the cost of goods sold for FY 2026 would have been 5,248.17 Lakhs on revenue from operations of 10,11621 Lakhs. However, the actual cost of goods sold for FY 2026 stood at 5,358.52 Lakhs. Accordingly, the marginal decrease in gross margin resulted in an increase in cost of goods sold of 110.35 Lakhs. The same is demonstrated below:

( in Lakhs except percentages)

Particulars	FY 2025-26	FY 2024-25
Revenue from Operations (A)	10,116.21	7,516.62
Gross Margin (B)	47.03%	48.12%
Cost of Goods Sold as per RFS (C)	5,358.52	3,899.53
Cost of Goods Sold as a % of Revenue from Operations (D=C/A)	52.97%	51.88%
Cost of Goods Sold (if there was no change in GM @48.12%) (E)	5,248.17	-
Impact due to increase in GM % (F=A*(D(FY2023-24)-D(FY2024-25))	(110.35)	-
Net COGS as per RFS (G=E-F)=C	5,358.52	-

Employee Benefit Expenses

Employee benefit expenses decreased from 1,616.80 Lakhs in FY 2025 to 1,605.28 Lakhs in FY 2026. The decrease was primarily due to a decrease in Salaries, Wages and Bonus by 71.51 Lakhs, mainly due to decrease in labour charges of 86.24

Lakhs as overtime hours reduced compared to the previous year. The reduction in overtime was driven by increased investment in machinery and the appointment of a new Factory Manager, who implemented various systems and process improvements on the shop floor, resulting in more efficient utilisation of manpower during regular working hours and improved productivity. This which was largely offset by an increase in gratuity expenses by 34.42 lakhs, increase in director remuneration by 17.33 lakhs and increase in staff welfare expenses by 6.80 Lakhs.

Finance Costs

Finance costs increased by 83.91% from 216.25 Lakhs in FY2025 to 396.15 Lakhs in FY2026. The increase was primarily due to increase in long-term borrowings (secured and unsecured) from 375.57 lakhs in FY 2025 to 1,310.27 lakhs in FY

2026. Additionally, there was an increase in other borrowing costs (LC charges, bank charges, BG charges, LC discounting charges, processing fee) from 38.63 lakhs in FY 2025 to 135.32 lakhs in FY 2026.

Depreciation and Amortisation expense

Depreciation and Amortisation expenses increased from 83.87 Lakhs in FY 2025 to 170.90 Lakhs in FY 2026. The increase was mainly attributable to addition of building, other fixed assets and intangible assets in FY2026 to the tune of 1,382.81 Lakhs.

Other expenses

Other expenses increased from 986.96 Lakhs in FY 2025 to 1,225.99 Lakhs in FY 2026. The increase in the components of other expenses was as follows:

a) Balances written off (net) increased by 286.62 Lakhs, from 11.67 Lakhs in FY 2025 to 298.29 Lakhs in FY 2026,

This comprised write-offs of 447.82 Lakhs, mainly relating to sundry creditors advances and sundry debtors balances at the Bengaluru unit. b) Commission and brokerage expenses increased by 59.23%, from 79.95 Lakhs in FY 2025 to 127.31 Lakhs in FY

2026, in line with the higher volume of orders secured during the year i.e, the Company had an order book of 101.65 crores as on March 31, 2026. c) Professional/consulting fees increased by 29.24 Lakhs, from 47.18 Lakhs in FY 2025 to 76.42 Lakhs in FY 2026, This is mainly due to consultancy charges paid to a single vendor to the tune of 38.58 Lakhs for engineering services provided by them. d) Rates and taxes increased by 21.24 Lakhs, from 30.59 Lakhs in FY 2025 to 51.83 Lakhs in FY 2026, due to the payment of interest on delayed TDS payment amounting to 16.81 lakhs and interest on late fee on GST of 5.14 lakhs. e) Rent decreased by 64.36%, from 49.64 Lakhs in FY 2025 to 17.69 Lakhs in FY 2026. This is because the Company operated from a rented premises earlier and they shifted to their owned premises in the month of August 2025.

Profit before Tax

Profit before tax increased from 749.64 Lakhs in FY 2025 to 1,547.66 Lakhs in FY 2026. This increase was mainly due to:

- Revenue from operations increased by 34.58% from 7,516.62 Lakhs in FY 2025 to 10,116.21 Lakhs in FY

2026.

- Other income increased by 151.85 Lakhs from 36.44 Lakhs in FY 2025 to 187.94 Lakhs in FY 2026. Tax Expenses

Tax expense increased by 51.79% from 258.21 Lakhs in FY 2025 to 391.95 Lakhs in FY 2026. This increase is in line with higher profitability. This is due to:

- Current tax increased from 231.19 Lakhs in FY 2025 to 401.66 lakhs in FY 2026

- Deferred tax decreased from 26.52 Lakhs in FY 2025 to (9.71) lakhs in FY 2026

- Prior period taxes decreased from 0.50 Lakhs in FY 2025 to NIL in FY 2026 Profit after Tax

After accounting for taxes at applicable rates, our Profit after Tax increased by 135.18% from 491.43 Lakhs in FY 2025 to 1,155.71 Lakhs in FY 2026. This was majorly due to:

a) Growth in revenue from operations by 34.58%, from 7,516.62 Lakhs in FY 2025 to 10,116.21 Lakhs in FY 2026 b) Increase in Other Income by 151.85 Lakhs from 36.44 Lakhs in FY 2025 to 187.94 Lakhs in FY 2026 due the

Foreign Fluctuation Gains c) Increase in Finance Costs by 179.89 Lakhs d) Increase in Depreciation and Amortisation Expense by 87.02 Lakhs e) Increase in Current Tax Expense from 231.19 Lakhs in FY 2025 to 401.66 Lakhs in FY 2026, in line with the higher

Profit Before Tax f) Total expenses increased by 1,953.42 Lakhs from 6,803.42 Lakhs in FY 2025 to 8,756.84 Lakhs in FY 2026

COMPARISON OF FINANCIAL YEAR ENDED MARCH 31, 2025 WITH FINANCIAL YEAR ENDED MARCH 31, 2024.

Components of Balance Sheet

( in Lakhs except percentage)

Particulars	March 31, 2025	March 31, 2024	Increase/Decrease	% increase/decrease
Long-term Borrowings	375.57	368.36	7.21	1.96%
Long Term Provisions	59.13	59.97	(0.84)	(1.40)%
Short Term Borrowings	1,345.32	1,050.91	294.41	28.01%
Deferred tax Liabilities	26.45	-	26.45	100%
Trade Payables	2,829.42	2,446.46	382.96	15.65%
Other Current Liabilities	4,024.29	1,899.06	2,125.23	111.91%
Short-term Provisions	14.00	8.95	5.05	56.42%
Property, Plant and
	823.07	860.05	(36.98)	(4.30)%
Equipment
Intangible Assets	6.61	1.16	5.45	469.83%
Capital Work in progress	125.07	-	125.07	100%
Non-Current Investments	351.36	55.71	295.65	530.69%
Inventories	1,529.43	434.93	1094.5	251.65%
Trade Receivables	4,286.30	3,630.78	655.52	18.05%
Cash and Cash Equivalents	52.14	354.43	(302.29)	(85.29)%
Short-term Loans and Advances	2,799.94	1,304.70	1,495.24	114.60%
Other Current Assets	25.81	22.64	3.17	14.00%

Long-Term Borrowings

Long-term borrowings increased marginally by 1.96% from 368.36 lakhs in FY 2024 to 375.57 lakhs in FY 2025. The increase was primarily due to additional term loan availed during the year, largely offset by scheduled repayments.

Long-Term Provisions

Long-term provisions decreased by 1.40% from 59.97 lakhs in FY 2024 to 59.13 lakhs in FY 2025. The marginal decrease is on account of employee benefit provisions.

Short-Term Borrowings

Short-term borrowings increased by 28.01% from 1,050.91 lakhs in FY 2024 to 1,345.32 lakhs in FY 2025. The increase was primarily on account of higher utilization of working capital facilities to support business operations.

Trade Payables

Trade payables increased by 15.65% from 2,446.46 Lakhs in FY 2024 to 2,829.42 Lakhs in FY 2025. The increase was mainly in line with the increase in the trade receivable cycle which increased from 104 days in FY 2024 to 182 days in FY 2025 respectively and the corresponding increase in trade payable cycle which were 173 days in FY 2024 and 193 days in FY 2025 (as per standalone RFS).

Other Current Liabilities

Other current liabilities increased by 111.91% from 1,899.06 Lakhs in FY 2024 to 4,024.29 Lakhs in FY 2025. The increase was primarily due to higher advances from customers, which rose from 2,044.50 from 1,512.40 Lakhs to 3,556.90 lakhs, reflecting advances received against orders to be executed in subsequent periods. The increase was also supported by higher current tax liabilities (net) by 141.98 Lakhs in FY 2025 which is in line with improved profitability and an increase in employee-related payables by 16.66 Lakhs due to higher accruals. This was partly offset by a reduction in statutory dues payable which declined by 77.91 Lakhs in FY 2025.

Short-Term Provisions

Short-term provisions increased by 56.42% from 8.95 Lakhs in FY 2024 to 14.00 Lakhs in FY 2025. The increase was primarily due to higher provision for gratuity which is in line with employee benefit obligations.

Property, Plant and Equipment

Property, plant and equipment decreased by 4.30% from 860.05 Lakhs in FY 2024 to 823.07 Lakhs in FY 2025. The decrease was primarily due to the depreciation charge of 83.87 Lakhs. Additions during the year was 54.34 Lakhs.

Intangible Assets

Our Intangible Assets increased by 469.83% from 1.16 Lakhs in FY 2024 to 6.61 Lakhs in FY 2025. The increase of 5.74

Lakhs reflects capitalization of new computer software net of amortization expenses.

Non-Current Investments

Our Non-Current Investments increased by 530.69% from 55.71 Lakhs in FY 2024 to 351.36 Lakhs in FY 2025. The increase was due to the increase in fixed deposits by 295.65 Lakhs in FY 2025.

Inventories

Inventories increased by 251.65% from 434.93 Lakhs in FY 2024 to 1,529.43 Lakhs in FY 2025. As on 31^st March 2025, the Company had an order book of 8,662.64 Lakhs and, in order to execute this order book, the Company maintained a higher level of inventory at year end.

Trade receivables

Trade receivables increased by 18.05% from 3,630.78 Lakhs in FY 2024 to 4,286.30 Lakhs in FY 2025. The increase was primarily due to timing of collections and higher outstanding balances from customers at the year-end. Despite a reduction in revenue from operations during FY 2025, receivables remained elevated due to extended credit periods for certain customers and delayed realization of dues at the end of the year.

Cash and Cash Equivalents

Cash and cash equivalents decreased by 85.29% from 354.43 Lakhs in FY 2024 to 52.14 Lakhs in FY 2025. The decrease was mainly on account of utilization of cash balances towards working capital requirements, including funding higher inventory levels, increased advances, capital expenditure and servicing of operating expenses.

Short Term Loans and Advances

Short-term loans and advances increased by 114.60% from 1,304.70 Lakhs in FY 2024 to 2,799.94 Lakhs in FY 2025. The increase was primarily due to higher advances given in the ordinary course of business including advances to vendors which increased by 1,366.41 Lakhs in FY 2025, advance to employees which increased by 20.65 Lakhs in FY 2025 and loans and advances to related parties which increased by 256.36 Lakhs. The increase reflects higher working capital deployment during the year, particularly in light of inventory build-up and operational requirements.

Other Current Assets

Other current assets increased by 14.00% from 22.64 Lakhs in FY 2024 to 25.81 Lakhs in FY 2025. The increase was mainly due to higher prepaid expenses of 5.54 Lakhs in FY 2025 and increase in balance with government by 1.21 Lakhs in FY 2025.

Components of Profit and Loss Income

Total Income

Total income decreased by 15.77% from 8,967.90 Lakhs in FY 2024 to 7,553.06 Lakhs in FY 2025, in line with the decrease in revenue from operations.

Revenue from Operations

Revenue from operations decreased by 15.51% from 8,896.17 Lakhs in FY 2024 to 7,516.62 Lakhs in FY 2025.

Revenue from operations for FY 2024 and FY 2025 included an amount of 131.57 Lakhs and 91.30 Lakhs respectively towards the supply of certain bought-out items as desired by our customers which were not part of our company product portfolio. These items were procured from third parties and supplied to the customers as part of their overall order requirements. Revenue from operations excluding supply of such bought-out items is as shown below:

	FY 2024-25		FY 2023-24
Particulars	Total Billed Order Value ( in lakhs)	Bought-Out Items Included in the Bill ( in lakhs)	Total Billed Order Value ( in lakhs)	Bought-Out Items Included in the Bill ( in lakhs)
Customers Invoice including bought out items	455.46	91.30	710.60	131.57

 

		( in Lakhs)
Particulars	FY 2024-25	FY 2023-24
Revenue from Operations as per RFS	7,516.62	8,896.17
Less: Revenue from operations of Bought-out items	91.30	131.57
Revenue from Operations excluding bought-out items	7,425.31	8,764.60

During the FY 2022-23, the Company took a conscious call primarily to cater to high-margin orders with better quality to utilize the available resources in the best possible economic interest even if it results in lower revenue from operations. In FY 2024 and FY 2025, the same strategic decision taken in FY 2022-23 to focus on higher-margin products continued and this approach resulted in:

i. Lower Revenue from Operations (excluding bought out items) from 8,764.60 Lakhs in FY 2024 to 7,425.31 Lakhs in FY 2025. ii. Increase in Gross Margin from 32.83% in FY 2024 to 48.12% in FY 2025.

While this approach resulted in a decline in revenue from operations but the objective of improving the gross margin % was achieved by the Company as can be seen from the above data.

The impact of this strategic shift to focus on high-margin orders with better quality is also visible in the current financial year

FY 2026, during which the Company has achieved revenue of 3,352.81 Lakhs till September 30, 2025 with a gross margin of

55.63% as compared to 48.12% in FY 2025. The gestation period of the strategic decision of catering to high-margin orders with better quality seems to be over and the Company currently is having a confirmed order book of 12,951.95 Lakhs as on March 05, 2026. The order book includes a significant order from a German customer amounting to 6,877.50 Lakhs (6550000 EURO), indicating continued demand for the Companys higher-margin offerings.

The bifurcation of revenue from high and low margin products for the last three Financial Years is as follows:

Particulars	FY 2024-25	FY 2023-24	FY 2022-23
Revenue from Operations	7,516.62	8,896.17	10,311.34
Cost of Materials consumed	4,024.19	5,774.94	7,645.38
Changes in inventories	(124.66)	200.29	-186.10
Gross Profit	3,617.09	2,920.94	2,852.06
Gross Margin	48.12%	32.83%	27.66%
High Margin Customers	3,581.10	3,681.88	2,975.18
High Margin Customer as a % of revenue from operation	47.64%	41.39%	28.85%
Low Margin Customers	3,935.52	5,214.29	7,336.16
Low Margin Customers as a % of revenue from operations	52.36%	58.61%	71.15%
Gross Margin from high margin Customers as per list attached:	51.40%	38.12%	36.08%
Gross Margin from low margin customers	1,776.33	1,517.27	1,778.59
Gross Margin % from low margin customers	45.14%	29.10%	24.24%

Other Income

Other income decreased by 49.20% from 71.73 Lakhs in FY 2024 to 36.44 Lakhs in FY 2025. In FY 2024 there was foreign exchange fluctuation gain of 43.15 Lakhs whereas in FY 2025, the Company paid foreign exchange fluctuation loss of 3.34

Lakhs, which primarily contributed to the overall decline in net other income.

Expenditure

Total Expenses

Total expenses decreased by 21.67% from 8,685.17 Lakhs in FY 2024 to 6,803.42 Lakhs in FY 2025. The decrease was largely driven by decrease in costs of material consumed and favorable inventory movement, partially offset by increases in finance costs, depreciation and other expenses.

Cost of Materials Consumed

The cost of materials consumed decreased by 30.32% from 5,774.94 Lakhs in FY 2024 to 4,024.19 Lakhs in FY 2025.

The decline was primarily attributable to the following reasons: i. Decrease in revenue from operations by 15.51% from 8,896.17 Lakhs in FY 2024 to 7,516.61 Lakhs in FY 2025. ii. Improvement in gross margin % from 32.83% in FY 2024 to 48.12% in FY 2025 (i.e., improvement by 15.29%).

Accordingly, the improvement in gross margin resulted in a reduction in cost of goods sold of 1,149.11 Lakhs, demonstrating the impact of strategic shift undertaken by the Company to focus on high-margin orders with better quality.

Employee Benefit Expenses

Employee benefits expenses decreased marginally by 4.68% from 1,696.23 Lakhs in FY 2024 to 1,616.80 Lakhs in FY 2025. The decrease was mainly due to decrease in salaries, wages and bonus by 61.34 Lakhs in FY 2025, decrease in director remuneration by 24.46 Lakhs in FY 2025 which was offset by the increase in gratuity expenses by 4.13 Lakhs.

Finance Costs

Finance costs increased by 22.26 % from 176.87 Lakhs in FY 2024 to 216.25 Lakhs in FY 2025. The increase was primarily due to higher utilization of working capital borrowings.

Depreciation and Amortisation expense

Depreciation and Amortisation expenses increased by 40.44% from 59.72 Lakhs in FY 2024 to 83.87 Lakhs in FY 2025.

The increase was mainly attributable to addition of plant and machinery and other fixed assets in recent periods to the amount of 54.34 Lakhs. Further to this, building worth 248.76 Lakhs was added during the year FY 2024 and the depreciation for which amounted to 10.51 Lakhs wherein the subsequent depreciation charged on the same was 33.15 Lakhs in FY 2025.

Other expenses

Other expenses increased by 27.00% from 777.12 Lakhs in FY 2024 to 986.96 Lakhs in FY 2025. The increase was primarily attributable to higher project execution in line with the Companys focus on customised, higher-margin turnkey projects. The increase in the components of other expenses was as follows:

f) Travelling and conveyance expenses increased by 134.22 Lakhs from 197.79 Lakhs in FY 2024 to 332.01 Lakhs in FY 2025. The rise was mainly due to greater customer interactions, vendor coordination, and project site visits. These travel initiatives supported business objectives, strengthened customer relationships, and facilitated timely execution of projects.

302 g) Freight charges including loading, packing increased by 124.00 Lakhs from 165.43 Lakhs in FY 2024 to 289.34

Lakhs in FY 2025, mainly due to freight charges paid for a single order value of an African Customer which amounted to 146.54 Lakhs. h) Commission and brokerage expenses increased by 46.83 Lakhs from 33.12 Lakhs in FY 2024 to 79.95 Lakhs in FY 2025. This is primarily because of commission charges paid for a single order to the tune of 60.00 Lakhs in FY

2025. i) Rates and taxes increased by 12.02 Lakhs. This was due to the mortgage charges amounting to 8.58 incurred for the mortgage of Malur facility of our Company.

Profit before Tax

Profit before tax increased significantly by 165.15% from 282.73 Lakhs in FY 2024 to 749.64 Lakhs in FY 2025. The increase was primarily due to improved gross margins which improved from 32.83% in FY 2024 to 48.12% in FY 2025. The increase was also attributable to favorable inventory movements and a higher share of customized, higher-margin projects in the revenue mix.

Tax Expenses

Tax expense increased by 213.82% from 82.28 Lakhs in FY 2024 to 258.21 Lakhs in FY 2025. This increase is in line with higher profitability. During the year, current tax increased by 153.58 Lakhs from 77.61 Lakhs in FY 2024 to 231.19 lakhs in FY 2025, reflecting higher taxable income.

Profit after Tax

After accounting for taxes at applicable rates, our Profit after Tax increased by 145.17% from 200.45 Lakhs in FY 2024 to 491.43 Lakhs in FY 2025. This was majorly due to:

g) Reduction in total expenses by 1,881.76 Lakhs from 8,685.17 Lakhs in FY 2024 to 6,803.41 Lakhs in FY 2025. h) Decrease in employee benefit expenses by 79.43 Lakhs from 1,696.23 Lakhs in FY 2024 to 1,616.80 Lakhs in FY

2025. i) Increase in Current Tax Expense from 77.61 Lakhs in FY 2024 to 231.19 Lakhs in FY 2025 due to increased PBT in FY 2025. j) Depreciation and Amortization Expensed increased by 24.15 Lakhs in FY 2025 k) Finance Cost reduced by 39.38 Lakhs in FY 2025

CASH FLOWS

The table below is our cash flows for the financial years ended on March 31, 2026, March 31, 2025, and March 31, 2024:

( in Lakhs)

	For the Financial Years ended on March 31,
Particulars
	2026	2025	2024
Net Cash generated from operating activities	798.23	60.32	62.24
Net Cash generated from/(utilised in) investing activities	(885.80)	(447.98)	(204.35)
Net Cash generated from financing activities	579.31	85.37	186.95

Cash Flows from Operating Activities

For the year ended March 31, 2026

Net cash generated from operating activities was 798.23 Lakhs for FY 2026. Net profit before tax was 1,547.66 Lakhs, which was primarily adjusted for depreciation of 170.90 Lakhs, finance cost of 396.15 Lakhs, foreign exchange fluctuation loss of 15.15 Lakhs and gratuity expense of 47.10 Lakhs, and reduced by interest income of 32.65 Lakhs and foreign exchange fluctuation gain of 151.57 Lakhs. Operating profit before working capital changes was 1,992.74 Lakhs. The adjustments to operating profit before working capital changes included adjustments for (i) Increase in Trade Payables of

591.97 Lakhs, (ii) Decrease in Other Current Liabilities of 2,323.08 Lakhs, (iii) Decrease in Provisions of 3.47 Lakhs, (iv) Decrease in Inventories 498.80 Lakhs (v) Increase in Trade Receivables of 8.83 Lakhs (vi) Decrease in Loans and Advances of 265.13 Lakhs and (vii) Decrease in Other Current Assets of 6.67 Lakhs. Direct Taxes paid for the financial year ended

March 31, 2026 amounted to 220.90 Lakhs.

For the year ended March 31, 2025

Net cash generated from operating activities was 60.32 Lakhs for FY 2025. Net profit before tax was 749.64 Lakhs, which was primarily adjusted for depreciation of 83.87 Lakhs, finance cost of 216.25 Lakhs, foreign exchange fluctuation loss of 3.37 Lakhs and gratuity expense of 12.67 Lakhs, and reduced by interest income of 25.09 Lakhs. Operating profit before working capital changes was 1,040.73 Lakhs. The adjustments to operating profit before working capital changes included adjustments for (i) Increase in Trade Payables of 382.95 Lakhs, (ii) Increase in Other Current Liabilities of 2,125.23 Lakhs, (iii) Decrease in Provisions of 8.46 Lakhs, (iv) Increase in Inventories 1,094.50 Lakhs (v) Increase in Trade Receivables of 655.53 Lakhs (vi) Increase in Loans and Advances of 1,495.24 Lakhs and (vii) Increase in Other Current Assets of

3.17 Lakhs. Direct Taxes paid for the financial year ended March 31, 2025 amounted to 231.69 Lakhs.

For the year ended March 31, 2024

Net cash generated from operating activities was 62.24 Lakhs for FY 2024. Net profit before tax was 282.73 Lakhs, which was primarily adjusted for depreciation of 59.72 Lakhs, finance cost of 176.87 Lakhs, foreign exchange fluctuation loss of 1.64 Lakhs and gratuity expense of 8.54 Lakhs and reduced by interest income of 25.32 Lakhs and foreign exchange fluctuation gain of 43.15 Lakhs. Operating profit before working capital changes was 461.03 Lakhs. The adjustments to operating profit before working capital changes included adjustments for (i) Increase in Trade Payables of 287.71 Lakhs, (ii) Decrease in Other Current Liabilities of 167.46 Lakhs, (iii) Decrease in Provisions of 2.11 Lakhs, (iv) Decrease in Inventories 965.95 Lakhs (v) Increase in Trade Receivables of 1,920.49 Lakhs (vi) Decrease in Loans and Advances of 406.04 Lakhs and (vii) Decrease in Other Current Assets of 109.18 Lakhs. Direct Taxes paid for the financial year ended March 31, 2024 amounted to 77.61 Lakhs.

Cash Flows from Investing Activities

For the year ended March 31, 2026

Net cash used in investing activities was 885.80 Lakhs. This was mainly due to purchase of property, plant and equipment of

1,257.74 Lakhs partly offset by redemption of 339.29 Lakhs and interest received of 32.65 Lakhs. For the year ended March 31, 2025

Net cash used in investing activities was 447.98 Lakhs. This was mainly due to purchase of property, plant and equipment of 179.41 Lakhs, investment of 295.65 Lakhs, partly offset by sale of property, plant and equipment of 2.00 Lakhs and interest received of 25.09 Lakhs.

For the year ended March 31, 2024

Net cash used in investing activities was 204.34 lakhs. This was primarily on account of purchase of property, plant and equipment of 423.83 Lakhs, investment of 54.59 Lakhs which was partly offset by sale of property, plant and equipment of 248.76 Lakhs and interest received of 25.32 Lakhs.

Cash Flows from Financing Activities

For the year ended March 31, 2026

Net cash generated from financing activities was 579.31 Lakhs, primarily on account of proceeds from long-term borrowings of 1,491.06 Lakhs which was offset by repayment of long-term borrowings of 379.19 Lakhs, net increase of short-term borrowings of 136.41 Lakhs and finance cost of 396.15 Lakhs.

For the year ended March 31, 2025

Net cash generated from financing activities was 85.37 Lakhs, primarily on account of proceeds from long-term borrowings of 496.09 Lakhs and net increase in short-term borrowings of 241.89 Lakhs which was partly offset by repayment of long-term borrowings of 436.36 Lakhs and finance cost paid of 216.25 Lakhs.

For the year ended March 31, 2024

Net cash generated from financing activities was 186.95 Lakhs. This was primarily on account of proceeds from long-term borrowings of 173.91 Lakhs and net increase in short-term borrowings of 359.15 Lakhs which was partly offset by repayment of long-term borrowings of 169.23 Lakhs and finance cost paid of 176.87 Lakhs.

RELATED PARTY TRANSACTIONS

Related party transactions with certain of our promoters, directors and their entities and relatives primarily relate to remuneration, salary, commission and issue of Equity Shares. For further details of related parties kindly refer chapter titled "Restated Consolidated Financial Statements" beginning on page 243 of this Red Herring Prospectus.

OFF-BALANCE SHEET ITEMS

We do not have any other off-balance sheet arrangements, derivative instruments or other relationships with any entity that have been established for the purposes of facilitating off-balance sheet arrangements.

QUALIFICATIONS OF THE STATUTORY AUDITORS WHICH HAVE NOT BEEN GIVEN EFFECT TO IN THE RESTATED CONSOLIDATED FINANCIAL STATEMENTS

The Restated Consolidated Financial Statements do not contain any qualifications which have not been given effect in the restated consolidated financial statements.

QUALITATIVE DISCLOSURE ABOUT MARKET RISK

Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Our exposure to the risk of changes in market interest rates relates primarily to our long-term debt obligations with floating interest rates. We manage our interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings. For further information, see "Financial Indebtedness" on page 273.

Effect of Inflation

We are affected by inflation as it has an impact on the salary, wages, etc. In line with changing inflation rates, we rework our margins so as to absorb the inflationary impact.

Credit Risk

Credit risk is the risk of financial loss to us if a customer or counterparty to a financial instrument fails to meet its contractual obligations. Credit risk arises principally from our receivables from deposits with landlords and other statutory deposits with regulatory agencies and also arises from cash held with banks and financial institutions. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. We assess the credit quality of the counterparties, taking into account their financial position, past experience and other factors. We limit exposure to credit risk of cash held with banks by dealing with highly rated banks and institutions and retaining sufficient balances in bank accounts required to meet a months operational costs. We review the bank accounts on regular basis and fund drawdowns are planned to ensure that there is minimal surplus cash in bank accounts.

Our Company conducts an extensive financial and credibility check on the landlords before taking any property on lease and our Company has no instance of non-refund of security deposit on vacating the leased property. The Company also in some cases ensure that the notice period of rentals are adjusted against the security deposits and only differential, if any, is paid out thereby further mitigating the nonrealization risk. Our Company foresees no credit risks on deposits with regulatory authorities

Liquidity risk

Liquidity risk is the risk that we will not be able to meet our financial obligations as they become due. We manage liquidity risk by ensuring, that we will always have sufficient liquidity to meet our liabilities when due.

OTHER MATTERS

Details of default, if any, including therein the amount involved, duration of default and present status, in repayment of statutory dues or repayment of debentures or repayment of deposits or repayment of loans from any bank or financial institution

Except as disclosed in chapter titled "Restated Consolidated Financial Statements" beginning on page 243 of this Red Herring Prospectus, there have been no defaults in payment of statutory dues or repayment of debentures and interest thereon or repayment of deposits and interest thereon or repayment of loans from any bank or financial institution and interest thereon by the Company.

Material Frauds

There are no material frauds, as reported by our statutory auditor, committed against our Company, in the last three Fiscals.

Unusual or infrequent events or transactions

Except as described in this Red Herring Prospectus, during the period/ years under review there have been no transactions or events, which in our best judgment, would be considered "unusual" or "infrequent".

Significant Economic Changes that Materially Affected or are Likely to Affect Income from Continuing Operations

Our business has been subject, and we expect it to continue to be subject, to significant economic changes that materially affect or are likely to affect our income from continuing operations identified above in Managements Discussion and Analysis of

Financial Condition and Results of Operations -Significant factors affecting our financial condition and results of operations and the uncertainties described in Risk Factors on pages 289 and 20 respectively

Known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations

Other than as described in the section titled "Risk Factors" and chapter titled "Managements Discussion and Analysis of

Financial Condition and Results of Operations", beginning on page 20 and 289 of this Red Herring Prospectus respectively to our knowledge there are no known trends or uncertainties that have or had or are expected to have a material adverse impact on revenues or income of our company from continuing operations.

Future relationship between Costs and Income

Other than as described in the section titled "Risk Factors" beginning on page 20 of this Red Herring Prospectus, to our knowledge there are no factors, which will affect the future relationship between costs and income or which are expected to have a material adverse impact on our operations and finances.

The extent to which material increases in revenue or income from operations are due to increased volume, introduction of new products or services or increased prices

Changes in revenue in the last three financial years are as explained in the part "Financial Year 2025-26 compared with financial year 2024-25 and Financial Year 2024-25 compared with Financial Year 2023-24" above.

Total turnover of industry segments

We provide engineering, designing, fabrication, installation, commissioning and decommissioning greenfield and brownfield projects across various industries which include, Breweries (Craft and Microbreweries), Distilleries, Food and Beverages, Malt Spirit and Blending, Extraction Plants, FMCG (Fast Moving Consumer Goods) and Pharmaceuticals. We undertake projects with full responsibility from design to handover, build key equipment in-house, use standardized modules and appropriate designs, and deploy project teams across client sites, which helps us deliver on schedule, cut rework, and control costs.

Relevant industry data, as available, has been included in the chapter titled "Industry Overview" beginning on page 142 of this Red Herring Prospectus.

Status of any publicly announced new products or business segments

Please refer to the chapter titled "Our Business" beginning on page 164 of this Red Herring Prospectus for new products or business segments.

The extent to which the business is seasonal

Our business is subject to seasonal variations and adverse weather conditions, particularly during the monsoon season, which may adversely affect our operations and financial performance.

Competitive Conditions

Competitive conditions are as described under the Chapters titled "Industry Overview" and "Our Business" beginning on pages 142 and 164 respectively of this Red Herring Prospectus.