SPR Auto Technologies Ltd Management Discussions

ANNEXURE - II TO THE BOARDS REPORT

I. Industry structure and developments

1. Global Economy and Its Outlook

1.1 State of the Global Economy in FY 2025–26

The global economy in FY 2025–26 faced headwinds from higher trade barriers and elevated uncertainty, which was offset by tailwinds from technology-related investment, accommodative financial conditions, and fiscal and monetary support. However, towards the end of the year, the underlying environment has become fragile and less predictable than it appeared at the start of the year on account of risks related to geopolitical disruption, energy market volatility, and the possibility of renewed trade fragmentation. The IMFs April 2026 World Economic Outlook notes that, under a limited-conflict assumption, global growth is projected to slow down at 3.1% in 2026 and 3.2% in 2027, but it also stresses that the war in the Middle East has raised commodity prices, firmed inflation expectations, and tightened financial conditions that led to huge supply chain disruptions globally.

The growth pattern remains uneven across regions. Advanced Economies are expected to expand at a relatively subdued pace, while Emerging Markets and Developing Economies continue to outperform the Advanced Economies, supported by stronger domestic demand, younger demographics, and industrialization. For export-oriented manufacturers this divergence matters because it changes the relative strength of end-markets, the cost of capital, and the risk profile of global customers.

Global inflation has eased considerably from the peaks seen in 2022 and 2023, but the disinflation process is neither complete nor linear. The IMF indicates that global inflation should tick up in 2026 before resuming its decline in 2027, which is a warning that the next stage of monetary policy is likely to be more cautious than accommodative. Price pressures are especially sensitive to fuel and freight, and that makes the current Middle East conflict particularly important because energy shocks usually spread quickly into transport, industrial input costs, and household inflation expectations.

1.2 Global Economy: Outlook

The IMFs limited-conflict baseline suggests growth of 3.1% in 2026. The most important feature of the global outlook is that it is now scenario-driven rather than single-path. A base case of modest growth can quickly shift to a slower and more inflationary outcome if energy prices remain elevated or if trade routes are interrupted for longer than expected. For the auto-components sector, the practical implication is that customer planning, freight contracting, and inventory strategy all need to be more flexible than in a normal cycle.

2. Indian Economy and Its Outlook

2.1 Indias Macroeconomic Performance in FY 2025–26

India continues to stand out as the fastest-growing major economy, and the latest official national accounts reinforce that position. The Ministry of Statistics and Program Implementations Second Advance Estimates released on February 27, 2026 state that real GDP is estimated to grow by 7.6% in FY 2025–26, after 7.1% growth in FY 2024–25. These figures confirm that India is still growing faster than most large economies, even as the global environment becomes less favorable.

The composition of growth remains important. Domestic consumption is supportedbyrisingincomes,betterfinancing conditions, and a gradual improvement in consumer confidence. Public investment remains a powerful anchor because capex has a broad multiplier effect on construction, logistics, industrial activity, and automobile demand. Manufacturing also contributes more meaningfully than in earlier cycles, which is important because the countrys medium-term industrial strategy depends on deeper localization and stronger export competitiveness.

2.2 Governments Growth Enablers

The Union governments growth strategy continues to rely heavily on infrastructure and industrial policy. Capital expenditure above Rs. 11 lakh crore has been directed toward roads, railways, ports, logistics corridors, urban development, and other productive assets that strengthen the medium-term supply side. This is not simply a fiscal statement; it directly affects demand forcommercialvehicles,construction-related transport, and a wide ecosystem of suppliers. Production Linked Incentive schemes continue to reinforce Indias manufacturing ambition. In the auto and auto-component space, the policy environment encourages localization, technology upgrades, and scale-building. Indias manufacturing momentum has remained encouraging. The shift away from China-centric sourcing has also helped India gain mindshare with global manufacturers. That said, this is not an automatic gain; manufacturers need quality, reliability, and delivery discipline to convert opportunity into export share.

On the policy side, the Reserve Bank of India held the repo rate unchanged at 5.25% in its April 8, 2026 policy meeting and retained a neutral stance. Official CPI data show that inflation was 2.75% in January 2026 and 3.4% in March 2026, which means price pressures remain manageable but are moving upward from earlier lows.

2.3 India Economic Outlook

Indias outlook for the next 12 to 24 months remains structurally strong. Growth should continue to outpace the global average, supported by domestic demand, capex, services, and a young consumer base. The main risk is not a collapse in activity but a squeeze in margins and spending power if energy prices stay high. For industrial companies, the best strategy in this environment is not to assume a benign

macro backdrop, but to plan for moderate growth with sharper cost discipline.

3. Global Automotive Industry and Its Outlook

3.1 Global Automotive Production Overview

The global automotive industry has moved beyond the acute supply shock phase of the past few years. Production has normalized in several markets, yet growth is still modest because demand in advanced economies is being restrained by interest rates and affordability pressures, while emerging markets continue to provide the main volume growth. The global industry therefore looks stable.

What makes the current phase important for suppliers is that the industrys centre of gravity is changing. The shift toward electrification, digitalization, and platform consolidation means that the value chain is changing even where total vehicle volumes are not moving dramatically. For a traditional precision-engineering company, that means demand is not disappearing, but the mix of demand is evolving, and the Company is well-placed to capture the demand.

Asia-Pacific remains the largest automotive production base, with China retaining scale leadership and India emerging as one of the fastest-growing markets with more focus on manufacturing. Europe is still coping with high energy costs, complex regulation, and a difficult transition to EVs, while North America continues to benefit from robust household balance sheets and localization investment, albeit with financing-sensitive demand. These differences matter because suppliers with export exposure must track not just the global market, but the strength and character of each regional customer base.

3.2 Technology Transformation and Outlook

The automotive industry is being reshaped by CASE: connected, autonomous, shared, and electric mobility. Global OEMs are investing heavily in software-defined vehicles, advanced driver assistance, digital diagnostics, and new mobility architectures. IEAs Global EV Outlook 2025 says electric car sales in 2025 are expected to exceed 20 million worldwide, representing more than one-quarter of global car sales. That is a major milestone, but it does not mean the ICE era has ended. Instead, it shows that the transition is accelerating in some markets while remaining gradual in others.

Global automotive outlook

4. Indian Automotive Industry and Its Outlook

4.1 Industry Performance in FY 2025–26

The Indian automotive industry had a landmark FY 2025–26 supported by GST 2.0. SIAMs April 2026 release indicated that the industry closed the year on a high note, with every major vehicle category posting its highest-ever sales in a financial year after seven years. Passenger vehicle sales reached 4.64 million units, commercial vehicles 1.08 million units, three-wheelers 0.84 million units, and two-wheelers 21.70 million units. These numbers reflect not just cyclical recovery, but also a stronger structural base created by policy support, improving affordability, and better consumer sentiment.

Two-wheelers remain the largest segment by volume and are especially sensitive to rural incomes, replacement demand, and

financing availability. Passenger vehicles continue to benefit from premiumization, SUV preference, and the growing appetite for feature-rich models. Commercial vehicles are linked more directly to infrastructure and freight activity, which means they tend to gainwhenpubliccapexandlogisticsdemand are strong. Three-wheelers are supported by urban mobility, last-mile delivery, and electrification. The broad takeaway is that the Indian market is no longer driven by one segment alone; the strength is spread more widely across the industry.

The export picture is also encouraging. SIAM reported that passenger vehicle exports reached 9.05 lakh units and two-wheeler exports reached 51.8 lakh units in FY 2025-26. That matters because Indias auto sector is increasingly integrated with global supply chains, and export diversification helps smooth domestic cycle volatility.

4.2. Indian Auto Components Industry

ACMAs latest published industry review states that the Indian auto components industry clocked turnover of Rs. 6.73 lakh crore (USD 78.74 billion) in FY2024-25, with exports of USD 22.9 billion and imports of USD 22.4 billion, resulting in a small trade surplus of USD 453 million. This is a meaningful signal because it shows that the Indian component industry is not just large; it is becoming increasingly competitive. The outlook for India auto components industry remains constructive. The market should continue to benefit from localization, export opportunities, and the rise of new powertrain and materials technologies. However, the sector will also need to manage volatility in metals, energy, and freight, as well as the possibility of slower growth in overseas markets if the Middle East conflict keeps oil prices elevated.

4.3 Indian Automotive Outlook

The Indian automotive industry is expected to maintain a strong growth trajectory over the medium term, supported by rising per-capita income, urbanization, infrastructure expansion, and low vehicle penetration. At the same time, industry must navigate commodity volatility, regulatory changes, and the gradual transition toward cleaner technologies. For auto-component manufacturers, the right strategy is to remain close to OEM demand while continuing to build export and technology capability.

5. Indian Electric Vehicle (EV) Market

Indias EV market remains at an earlier stage of development than the leading global markets, and adoption is concentrated in two-wheelers and three-wheelers rather than in large passenger-vehicle fleets. The key point for annual-report analysis is not just adoption rate, but the speed at which the ecosystem is being built around charging, batteries, and power electronics.

EV market and company implications

6. Indian Automotive Interiors Market (including Headliners, Door Plastic Trims, Interior Lighting and Sunvisors)

The Indian automotive interiors market (including headliners, door plastic trims, interior lighting and sunvisors) has witnessed strong growth in recent years, driven by rising vehicle demand, premiumization trends, and increasing integration of digital and electronic features within vehicles. The Indian automotive interior market (including headliners, door plastic trims, interior lighting and sunvisors) is estimated to be in the range of Rs. 52 billion in FY 2025–26 and is expected to grow at a CAGR of ~7% to reach Rs. 65 billion approximately by FY 2029-30, on account of Indias expanding automotive base and increasing consumer expectations.

Following the recent acquisition of three Indian entities of the Antolin Group, the Company has entered the automotive interiors and lighting solutions segment. This strategic expansion marks a significant milestone, transforming the Company into a multi-product and well-diversified automotive components manufacturer. The addition of interiors and lighting solutions strengthens the Companys product portfolio with technologically advanced, design-driven offerings that are powertrain agnostic, enabling alignment across internal combustion, hybrid, and electric vehicle platforms. This diversification reduces dependency on single vehicle technology, broadens addressable markets, and positions the

Company to benefit from evolving automotive trends, thereby supporting sustainable growth and long-term value creation.

6.1 Key Growth Drivers

• Premiumization of Passenger Vehicles

• Rising Disposable Income & Urbanization

• Digitalization and Connected Features

• Impact of EV Transition in India

7. Indian Automotive Plastic Components Market

Plastic components play a critical role in the Indian automotive industry, supporting the sectors focus on cost efficiency, lightweighting, and regulatory compliance.

The Indian automotive plastics market is estimated at approximately Rs. 194 billion in FY 2025–26 and is expected to grow at a CAGR of 6% to reach approximately Rs. 245 billion by FY 2029-30, driven by strong domestic vehicle production and increasing adoption of advanced materials, with the two-wheeler market segment being a major consumer of plastic components. However, the precision plastic molded parts market is estimated to be approximately Rs. 60 billion.

With the Companys strong presence in the automotive plastics industry — reinforced by the strategic acquisitions of SPR Takahata and SPR TGPELPrecisionEngineeringLimited,theCompany is well positioned to capitalize on the robust growth expected in this segment. These acquisitions have enhanced the Companys capabilities across precision manufacturing, advanced tooling, and plastic components, while also expanding its footprint across key automotive customers and platforms. As automotive manufacturers increasingly focus on lightweighting, cost optimization, and sustainable material solutions, the Companys expanded capabilities and strategic positioning are expected to support increased market share, revenue growth, and long-term value creation.

II. OPPORTUNITIES

The operating environment during FY 2025-26 presents multiple opportunities for the Company, driven by structural industry trends, regulatory developments and evolving customer requirements across domestic and export markets. Theautomotiveaftermarketcontinuestorepresenta significant and relatively stable growth opportunity. Indias expanding vehicle parc, increasing average vehicle age and high utilisation levels across two wheelers, three wheelers and commercial vehicles support sustained replacement demand for engine components. The aftermarket is less sensitive to short term fluctuations in new vehicle sales and provides greater revenue visibility and margin stability. Increased formalisation of the aftermarket and rising preference for branded, quality assured components further favour organised players. The ongoing trend toward hybridisation presents a meaningful opportunity for ICE component manufacturers. As emission and fuel efficiency norms tighten, hybrid powertrains are increasingly being adopted as a transitional solution between conventional ICE vehicles and full electrification. Hybrid vehicles continue to rely on highly efficient internal combustion engines operating under demanding duty cycles, thereby increasing the importance of low friction, high durability engine components. This trend supports demand for advanced piston rings, specialised coatings, thermally optimised pistons and precision valve train components, enabling higher value addition and improved realisations.

Regulatory led value enhancement is another important opportunity during FY2025-26. Regulations such as BS6 Phase II, Trem IV and Trem V, CPCB III/ IV in India and Euro 7 in global markets place greater emphasis on real world emissions, durability and extended service life. These requirements increase the technical complexity of engine components and favour suppliers with strong engineering capabilities, robust quality systems and compliance readiness. The Companys focus on in-house technology development, process control and precision manufacturing positions it well to benefit from this shift toward higher specification components.

Export market opportunities remain selective but meaningful. Global OEMs and Tier 1 suppliers continue to diversify sourcing to improve supply chain resilience and optimise costs. Indias position as a competitive manufacturing hub, supported by skilled manpower and improving infrastructure, creates opportunities in select geographies such as North America, Asia and emerging markets. While near term macroeconomic and logistics challenges persist, the Companys focus on customer diversification, product quality and delivery reliability is expected to support steady export performance.

III. THREATS

While the overall outlook remains cautiously optimistic, the Company operates in an environment characterised by multiple external and industry specific challenges.

Geopolitical developments and logistics disruptions remain a key threat. Ongoing tensions in certain regions have led to shipping route diversions, longer transit times and elevated freight and insurance costs. Such disruptions can impact delivery schedules, increase inventory holding requirements and elongate working capital cycles, particularly for export oriented operations. Prolonged logistics inefficiencies may also affect export competitiveness and customer service levels.

Energy and commodity price volatility continues to pose risks to operating margins. Fluctuations in crude oil prices directly influence fuel, freight and power costs, while volatility in raw materials such as alloy steel and specialised inputs can increase input costs. In periods of sharp price movements, delays in cost pass through to customers may adversely impact profitability. Managing cost volatility while maintaining competitive pricing remains a key challenge.

Regulatory transition risks also persist. While regulatory changes create opportunities for value addition, they also carry execution risks. Faster than anticipated adoption of alternative propulsion technologies, changes in regulatory timelines or shifts in government policy could impact demand for certain ICE components. Balancing investments in technology and capacity while navigating an evolving regulatory landscape remains a strategic challenge for the Company.

IV. SEGMENT-WISE/ PRODUCT-WISE PERFORMANCE

The Company deals principally in only one segment i.e. automotive components. Therefore, segment-wise performance is not applicable.

V. OUTLOOK

The outlook remains optimistic, supported by resilient domestic automotive demand, structural strength in the aftermarket, and selective opportunities in export markets. While near term uncertainties related to geopolitical developments, logistics disruptions and commodity price volatility persist, the underlying fundamentals of the automotive and auto component industry remain intact.

Domestic automotive demand in India is expected to remain stable, driven by replacement demand, infrastructure led activity and continued urbanisation. Passenger vehicle demand is likely to be supported by sustained preference for utility vehicles and feature rich models, while two wheelers and three wheelers are expected to benefit from improving rural mobility and last mile connectivity requirements. Commercial vehicle demand is expected to remain linked to infrastructure spending, freight movement and fleet replacement cycles, providing steady support to engine component demand.

The automotive aftermarket is expected to continue acting as a key stabilising factor. An expanding vehicle parc, higher average vehicle age and sustained on road utilisation levels are expected to support consistent replacement demand across vehicle categories. Increased formalisation of the aftermarket and growing preference for branded, quality assured components are expected to benefit organised players. For the Company, the aftermarket is expected to provide revenue visibility, margin stability and improved cash flow resilience during the year.

Overall, while the operating environment is expected to remain dynamic, the Companys diversified customer base, strong aftermarket presence, focus on technology led products and emphasis on operational efficiency position it well to navigate uncertainties and pursue sustainable growth. Continued attention to cost management, supply chain resilience and product development will remain central to the Companys strategy during the year.

VI. RISKS AND CONCERNS

The Company operates in a dynamic and evolving business environment and is exposed to a range of risks and uncertainties that could impact its operational and financial performance. While several of these risks are inherent to the automotive and manufacturing sectors, the Company continuously monitors the operating environment and undertakes appropriate mitigation measures to manage potential adverse impacts.

Supply chain and logistics risks remain an important area of concern. Disruptions in global shipping routes, port congestion, extended transit times and elevated freight and insurance costs can affect the timely availability of raw materials and delivery of finished goods. Such disruptions may result in higher working capital requirements and increased operating costs. The Company mitigates these risks through diversified sourcing, close coordination with logistics partners, calibrated inventory planning and continuous monitoring of supply chain developments.

Volatility in raw material and energy prices poses a risk to operating margins. The Companys cost structure is influenced by prices of key raw materials such as alloy steel and other specialised inputs, as well as energy and fuel costs. Sudden or sustained increases in input costs, particularly in periods where price pass through to customers is delayed, may impact profitability. The Company seeks to mitigate this risk through long term supplier relationships, cost optimisation initiatives, productivity improvements and, where feasible, contractual price adjustment mechanisms. Demand variability and market cyclicality represent ongoing risks. Automotive demand is influenced by macroeconomic conditions, interest rates, fuel prices, regulatory changes and consumer sentiment. Fluctuations in demand across vehicle segments and geographies can lead to uneven capacity utilisation and impact operating leverage. The Companys diversified customer base, presence in both OEM and aftermarket segments, and focus on multiple vehicle categories help mitigate the impact of demand cyclicality.

Regulatory compliance and transition risks are an important consideration. The automotive industry is subject to frequent regulatory changes relating to emissions, safety, fuel efficiency and product durability. Compliance with evolving regulations such as BS6 Phase II, Euro 7 and future fuel efficiency norms requires continuous investment in technology, processes and testing capabilities. Delays in regulatory clarity, changes in implementation timelines or faster than anticipated shifts in propulsion technologies could impact demand for certain products. The Company addresses these risks through proactive regulatory tracking, early engagement with customers and continuous product development.

Technological and product mix risks also merit attention. While internal combustion engine components are expected to remain relevant, the longer term transition toward alternative propulsion technologies introduces uncertainty regarding future product demand. In addition, increasing technical complexity of components requires sustained investment in engineering capabilities and manufacturing precision. The Company mitigates these risks by focusing on higher value, technology intensive products, hybrid optimised components and continuous up skilling of its workforce.

Competitive intensity and pricing pressure remain ongoing concerns. The auto component industry is characterised by intense competition, with pressure from both domestic and global suppliers. OEMs and Tier 1 customers continue to pursue cost reduction initiatives, which may impact pricing and margins. The Company addresses competitive pressures through operational efficiency, quality differentiation, customer relationship management and selective focus on value added product segments.

Human resource and operational risks are managed through a strong focus on employee engagement, safety, skill development and industrial relations. Availability of skilled manpower, retention of key talent and maintaining harmonious labour relations are essential for operational continuity. The Company continues to invest in training, safety practices and employee welfare to mitigate these risks.

Overall, while the operating environment presents multiple challenges, the Company believes that its diversified business model, focus on technology and quality, robust internal controls and proactive risk management practices position it well to manage risks and pursue sustainable growth.

VII. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY.

The Company has established a comprehensive internal control framework designed to authorize, document, and accurately report transactions, as well as to protect assets from unauthorized access or disposition. These control measures are critical for ensuring the reliability of financial data and information, as well as for upholding accountability for the Companys assets. The Audit Committee, an integral part of the Board, actively engages in reviewing significant audit observations and the subsequent remedial measures. It also oversees the progress of managements responses to internal audit findings. The Internal Audit function, working in tandem with external auditors, has been instrumental in fortifying the Companys processes to boost efficiency and productivity. This includes the adoption of state-of-the-art analytical tools within the audit field to deepen the scope, extend coverage, and enhance precision. The Companys internal financial controls over financial reporting are robust and effective, offering reasonable assurance across all financial and operational activities, as well as adherence to legal mandates. Comprehensive business planning, investment analysis, annual reviews, and regular financial and operational planning are embedded practices. Monthly performance tracking is a routine procedure for all operational and service departments. The integration of Enterprise Resource Planning (ERP), supplier relationship management, and customer relationship management systems facilitates seamless communication across various locations, dealers, and vendors, optimizing the exchange of information. The Company leverages data analytics and advanced IT resources to broaden and refine the internal audit functions scope and efficacy.

In response to the growing cybersecurity concerns in todays digital landscape, the Company is proactively implementing robust systems and protocols to safeguard its assets and data. The Company is committed to ensuring the highest level of security by conducting thorough risk assessments and deploying advanced technologies to detect and mitigate potential threats. The team is continuously monitoring the Companys systems and networks, while also providing ongoing training and awareness programs to all the employees. Additionally, the Company has implemented systematic procedures to periodically evaluate a spectrum of risks, assess their probability and potential impact, and devise proactive strategies to mitigate the effects of these risks.

VIII. FINANCIAL/ OPERATIONAL PERFORMANCE

The Companys consolidated revenue from operations during the year ended March 31, 2026, was Rs. 44,587 Million, which increased by 25.60% from Rs. 35,498 Million for the year ended March 31, 2025. Consequently, the consolidated total income during the year ended March 31, 2026 grew by 24.86% over the previous year, to Rs. 45,713 Million, from Rs. 36,612 Million in fiscal year 2024-25. The Company has achieved growth and delivered a strong overall performance, despite a turbulent year for the industry both domestically and internationally, thereby outgrowing the end markets. Consolidated net profit after tax (before OCI) of the Company during the year ended March 31, 2026, was Rs. 5,614 Million as against Rs. 5,156 Million during the year ended March 31, 2025, which was a year-on-year growth of 8.88%. Consolidated earnings per share in fiscal year 2025-26 was at Rs. 125.43 per share, as compared to Rs. 115.02 per share in the fiscal year 2024-25, marking a year-on-year growth of 9.04%. On a standalone basis, the Company recorded revenue from operations of Rs. 35,266 Million in fiscal year 2025-26, as compared to Rs. 31,795 Million in fiscal year 2024-25. Total income during the year ended March 31, 2026, stood at Rs. 36,261 Million, growing by 10.46% from Rs. 32,827 Million for the year ended March 31, 2025. Standalone net profit after tax (before OCI) for the year ended March 31, 2026 grew by 3.18% to Rs. 5,136 Million as compared to Rs. 4,978 Million for the year ended March 31, 2025. Standalone earnings per share in fiscal year 2025-26 was at Rs. 116.60 per share, as compared to Rs. 113.01 per share (post bonus issue of 1:1) in the fiscal year 2024-25, marking a year-on-year growth of 3.18%.

Thus, the Company concluded the fiscal year 2025-26 with a robust performance across all metrics. This performance is a testament to the leading market position and strategic approach adopted by the Company to navigate market complexities, enabling the Company to continuously outgrow the industry.

IX. HUMAN RESOURCES/ INDUSTRIAL RELATIONS

The Company firmly believes that its human resources are the bedrock of its success. Embracing a values-driven culture, the Company has consistently invested in its people, fostering a sense of community and belonging. Management acknowledges the critical role of its workforce and is committed to their development through a spectrum of training initiatives and welfare programs. The aim is to cultivate an environment that encourages continual innovation and progress, where employees are recognized and rewarded for their contributions towards the Companys goals. Efforts are continually made to reinforce the management framework, promoting both stability and advancement within the organization. The collective achievements of the Company are attributed to the teamwork and collaborative spirit of its employees. The Company is dedicated to maintaining a nurturing learning atmosphere that supports employees from the moment they are hired through to their retention. In line with this commitment, the Company also promotes continuous learning and professional development through its Higher Education Subsidy Program, under which eligible employees are encouraged to pursue advanced academic qualifications in collaboration with reputed institutions. Core values such as dignity, respect, fairness, and transparency are at the heart of the Companys ethos, alongside providing equal growth opportunities for all staff members. Internal mobility is actively promoted, allowing employees to pursue a variety of career paths and aiding in the cultivation of a strong talent reservoir. The Company has successfully completed several strategic acquisitions over the last few years, enhancing the Companys capabilities and expanding market presence. The Company has made significant strides in integrating the teams from the group companies, fostering collaboration and synergy across all levels. This has been done by rolling out common culture across the group Companies. With a clear vision set forth by the management, all teams are aligned on a unified path, working cohesively towards common goals. This collaborative spirit among the group companies is driving the Company towards greater success, as the Company leverages the collective strengths to achieve outstanding results in the future. The Company is committed to the principles of equal opportunity employment, with policies that encompass all aspects of diversity, including but not limited to gender, marital status, religion, caste, color, age, ancestry, language, socio-economic background, physical appearance, disability, and any other categories safeguarded by law. Recognizing the skills, contributions, potential, and intrinsic worth of its human capital, the Company maintains the highest regard for the dignity, basic freedoms, and human rights of its employees, contractors, and the communities where it operates. As a conscientious corporate entity, the Company adheres to all relevant legal requirements and upholds human rights standards.

As of March 31, 2026, the Company is proud to have a dedicated team of 3,827 permanent employees.

X. CHANGES IN KEY FINANCIAL RATIOS ARE AS UNDER:

Return on Net worth of the Company during Financial Year 2025-26 was 17.94% as compared to 20.89% last year.

*The variation is more than 25% over last year due to additional short-term borrowing made during the current year results into increase in current liabilities.

XI. Cautionary Statement

This document, part of the Management Discussion and Analysis Report, contains forward-looking statements. These statements, which may include projections, expectations, and assessments of market conditions and regulatory frameworks, are developed under the framework of applicable securities laws and are grounded in the data currently accessible to the Company. Such forward-looking statements are speculative by nature and are subject to inherent uncertainties and reliance on assumptions made by the Company. The Company urges readers to exercise caution with respect to these forward-looking statements. It is possible that actual outcomes, future results, and events may deviate significantly from what is projected or anticipated due to a variety of influential factors. Key elements that could impact the Companys performance include, but are not limited to, economic trends influencing supply and demand dynamics, pricing in both local and international markets, legislative changes, modifications in tax regulations, and other unforeseen variables. This cautionary statement serves to remind readers that the forward-looking statements should not be seen as guarantees of future performance and that they are subject to risks, uncertainties, and assumptions that are detailed in the Managements Discussion and Analysis section of the Boards Report for the fiscal year 2025-26. This section provides a comprehensive context and should be consulted to fully understand the qualifications and risk factors associated with the forward-looking statements made herein.