Steelcast Ltd Management Discussions

Steelcast Limited manufactures specialised steel and alloy steel castings for Original Equipment Manufacturers (OEMs) across various heavy engineering sectors. With over six decades of experience, the company has developed strong metallurgical capabilities and expertise in producing complex, high-performance castings for demanding industrial applications.

The Company operates an integrated manufacturing facility in Bhavnagar, Gujarat, with an installed casting capacity of around 30,000 tonnes per annum. Its product portfolio includes carbon steel, low alloy steel, high alloy steel and wear-resistant castings, manufactured using advanced No- Bake and Shell Moulding processes.

Steelcasts products are used across sectors such as earthmoving and construction equipment, mining and mineral processing, steel and cement, and railways, where components are required to perform reliably under rigorous operating conditions.

With a strong export orientation, the Company supplies castings to customers across North America, Europe and Asia. Supported by in-house engineering capabilities, pattern development and quality assurance systems, Steelcast focuses on delivering precision-engineered casting solutions to meet the evolving needs of global industrial customers.

Global economic review

The global economy continued to demonstrate resilience during the year despite persistent geopolitical tensions, evolving trade dynamics and uneven recovery across regions. According to the International Monetary Fund (IMF), global growth stood at 3.4% in 2025 and is projected at 3.1% in 2026 and 3.2% in 2027, reflecting a moderation in economic momentum amid geopolitical disruptions, trade fragmentation and tighter financial conditions. Economic activity remained underpinned by resilient domestic demand in several economies, a gradual easing of inflationary pressures and continued public and private sector investments in strategic industries.

Regional Trends North America:

Economic activity in the United States remained relatively resilient during the year, supported by fiscal stimulus, strong private consumption and continued investments in technology and artificial intelligence-related infrastructure. However, tighter financial conditions, evolving trade policies and slower labour force growth moderated overall economic momentum. According to the IMF, the US economy is projected to grow by 2.3% in 2026 and 2.1% in 2027.

Europe:

Growth across the Euro area remained moderate amid elevated energy costs, geopolitical uncertainty and subdued manufacturing demand. Industrial activity continued to face pressure from persistent energy market disruptions and softer export demand, although infrastructure investments, industrial decarbonisation initiatives and increased defence spending supported economic activity across several economies. The Euro area is projected to grow by 1.1% in 2026 and 1.2% in 2027.

Asia-Pacific:

Asia continues to remain the principal driver of global economic expansion. Chinas growth is projected at around 4.5% in 2026, supported by policy stimulus and stabilisation in trade conditions, while India remains one of the fastest-growing major economies globally. Rapid urbanisation, infrastructure development and expanding manufacturing ecosystems across the region are supporting industrial output and capital investment.

Emerging Markets:

Emerging and developing economies are expected to continue outpacing advanced economies, driven by stronger demographic trends, expanding consumer markets and increasing investment in infrastructure and industrial capacity. However, growth trajectories remain uneven across regions depending on commodity cycles, fiscal conditions and external trade exposure.

Global inflation has shown a moderating trend as supply chain disruptions have eased and commodity markets have stabilised relative to prior periods. While inflation remains above historical averages in certain regions, the gradual easing in price pressures is allowing central banks to adopt a more balanced approach to monetary policy, supporting economic activity.

Across geographies, investment trends continue to be shaped by industrial modernisation, energy transition, and digital transformation. Governments and corporations are allocating capital towards renewable energy, grid infrastructure, advanced manufacturing and automation technologies. These investments are expected to support

long-term productivity, although near-term returns may remain uneven across sectors.

Global supply chains continue to evolve in response to past disruptions and ongoing geopolitical developments. Companies are increasingly adopting diversified sourcing strategies, regionalising supply chains and investing in logistics and digital capabilities to enhance resilience. While these measures are improving operational stability, supply chain risks have not fully abated and remain sensitive to geopolitical and trade developments.

Outlook

The global economy is expected to maintain moderate growth momentum over the near term, supported by continued investments in infrastructure, technology, industrial capacity and supply chain resilience across both advanced and emerging economies. However, geopolitical instability, trade fragmentation, commodity price volatility and tighter financial conditions continue to remain key downside risks to the global economic outlook.

The ongoing conflict in the Middle East continues to pose significant risks to global energy markets, logistics networks and inflation trends. Rising oil, gas, shipping and transportation costs may continue to influence industrial input prices, supply chains and trade flows across regions. In addition, evolving trade policies, tariff-related uncertainties and geopolitical realignments are expected to further reshape global investment flows, sourcing strategies and manufacturing ecosystems.

Despite elevated near-term uncertainties, continued investments in industrial modernisation, digitalisation, artificial intelligence and infrastructure development are expected to support long-term global economic resilience, productivity enhancement and industrial competitiveness across economies.

(Source: IMF April 2026 Outlook)

Indian Economic Review

The Indian economy continued to demonstrate strong resilience during the year, supported by robust domestic demand, sustained public investment and improving industrial activity despite global uncertainties and geopolitical disruptions. India remained among the fastest- growing major economies globally, with real GDP growth estimated at 7.6% in FY 2025-26 under the revised GDP series. Growth continued to be supported by strengthening private consumption, large-scale infrastructure investments and continued expansion across the manufacturing sector.

(E: Estimated; Source: MoSPI)

Indias growth continues to be supported by a balanced combination of consumption-led demand and investment-driven expansion. Private Final Consumption Expenditure (PFCE) accounts for over 60% of GDP, supported by rising incomes, urbanisation, improved credit availability and increasing digital adoption.

Inflation remained relatively contained during the year, supported by easing commodity prices and stable food supply conditions. Inflation levels remained broadly within the Reserve Bank of Indias target range, helping sustain purchasing power and macroeconomic stability.

Indias external sector remained resilient despite global trade volatility. Merchandise exports reached approximately USD 437.7 billion, supported by strong performance across engineering goods, electronics, pharmaceuticals and chemicals. Imports remained elevated due to strong demand for capital goods, intermediate inputs and energy, reflecting ongoing industrial expansion.

Commodity price trends also supported macroeconomic stability, with global crude oil prices averaging around USD 80-85 per barrel, easing pressure on imported inflation and the current account balance.

Investment activity remained a key growth driver. Rising public capital expenditure, strengthening private investment and increasing domestic savings have supported higher capital formation across infrastructure, manufacturing and energy sectors.

Sectoral Performance

Industrial activity strengthened during the year, supported by improving manufacturing output and continued policy support. The industrial sector is projected to grow by around 6.2% in FY26, compared with 5.9% in FY25, while the Index of Industrial Production (IIP) recorded growth of 7-8% during late 2025, driven by expansion across manufacturing, mining and electricity.

Manufacturing continues to benefit from policy initiatives aimed at strengthening domestic production and improving supply chain resilience. Investments across capital goods, engineering equipment, construction machinery and mining infrastructure are supporting industrial output and capacity expansion.

Government initiatives such as the Production Linked Incentive (PLI) schemes across 14 sectors continue to attract investment in industries including electronics, renewable energy equipment, automobiles and advanced manufacturing, strengthening Indias integration into global manufacturing value chains.

Union Budget 2026-27: Infrastructure and Manufacturing Push

The Union Budget 2026-27 reinforces the Governments infrastructure-led growth strategy. Public capital expenditure has been increased to INR 12.2 lakh crore (around 3.1% of GDP), while effective capital expenditure, including grants to states, is estimated at 17.1 lakh crore.

These investments are aimed at strengthening transport infrastructure, logistics networks, industrial corridors and urban development, while crowding in private sector investment.

Under the PM Gati Shakti National Master Plan, initiatives such as seven high-speed rail corridors, expanded freight infrastructure and 20 additional National Waterways are expected to enhance logistics efficiency and support manufacturing clusters.

The Government continues to strengthen the manufacturing ecosystem through PLI schemes across 14 sectors, alongside initiatives such as the India Semiconductor Mission, aimed at developing domestic semiconductor manufacturing and strengthening technological capabilities.

The Budget also reinforces Indias commitment to the energy transition, with continued investments in renewable energy, grid modernisation, green hydrogen and energy storage systems.

Outlook

Indias economic outlook remains supported by domestic demand and continued infrastructure investment; however, the pace of growth may be uneven in the near term. Public capital expenditure and improvements in logistics infrastructure are expected to support industrial activity, while private sector participation is gradually strengthening, although investment decisions in certain sectors remain measured.

Policy initiatives such as PLI schemes, industrial corridor development and semiconductor programmes are expected to support long-term manufacturing competitiveness and integration into global supply chains. That said, the pace of execution and realisation of these benefits may vary across sectors and timelines. Similarly, investments in renewable energy, grid infrastructure and emerging areas such as green hydrogen are likely to drive incremental demand, though scale-up remains dependent on policy support, financing availability and project execution timelines.

External risks continue to warrant close monitoring. Geopolitical tensions, particularly the ongoing conflict in the Middle East, have introduced volatility in energy prices and logistics costs, which may impact input costs, supply chains and industrial demand. In addition, global macroeconomic conditions, including trade uncertainties and capital flow dynamics, could influence the operating environment.

Overall, while Indias underlying growth drivers remain intact, near-term conditions may remain subject to external uncertainties and execution-related factors. Accordingly, growth across engineering, manufacturing and infrastructure-linked sectors is expected to remain steady, though with periods of variability.

Global Metal Casting Industry Overview

The global metal casting industry plays a critical role in supporting manufacturing and infrastructure development across key sectors such as automotive, machinery, construction, aerospace and energy. Metal casting enables the production of complex, high-strength components required for heavy-duty industrial applications, making it an essential part of global manufacturing value chains.

According to IMAC research report, the global metal casting market was valued at approximately USD 190.5 billion in 2025 and is projected to reach USD 352.4 billion by 2034, growing at a compound annual growth rate (CAGR) of around 6.7% between 2026 and 2034. The growth of the industry is supported by rising industrialisation, infrastructure investments and increasing demand for engineered metal components across a wide range of industrial sectors.

The automotive and transportation sector remains the largest end-use industry, accounting for more than 50% of global demand, followed by equipment manufacturing, construction and aerospace applications. Cast metal components are widely used in engines, transmission systems, structural assemblies and industrial machinery, where durability, strength and precision are critical.

Regionally, the Asia-Pacific region dominates the global metal casting industry, accounting for nearly 54.9% of the global market share, supported by strong manufacturing ecosystems, expanding automotive production and increasing infrastructure investments across countries such as China, India, Japan and South Korea. North America and Europe also remain important markets, supported by advanced manufacturing capabilities and strong demand from aerospace, defence and automotive industries.

Growth Drivers

Industrialisation and Infrastructure Development

Rapid industrialisation and urbanisation across emerging economies continue to drive demand for metal casting products. Large-scale investments in infrastructure such as transportation networks, urban development, energy systems and industrial facilities are increasing demand for durable metal components used in construction equipment, machinery and structural applications.

Automotive and Electric Vehicle Expansion

The automotive industry remains the largest consumer of metal cast components. Increasing global vehicle production, combined with the transition toward electric and hybrid vehicles, is driving demand for lightweight and high-performance cast components used in battery housings, motor casings and structural assemblies.

Technological Advancements in Casting Processes

Technological advancements such as automation, robotics, computer-aided design (CAD), computer- aided manufacturing (CAM) and additive manufacturing are improving production efficiency and product precision. Innovations in casting techniques are enabling manufacturers to produce complex components with improved quality and reduced material waste.

Growing Adoption of Recycled Metals

Increasing environmental awareness and rising raw material costs are encouraging the use of recycled metals in casting processes. Recycling metals significantly reduces energy consumption and carbon emissions compared to producing virgin materials, supporting more sustainable manufacturing practices within the industry.

Rising Demand from Defence and Aerospace Sectors

Increasing defence expenditure and expansion in aerospace manufacturing are also supporting demand for high-performance metal cast components used in aircraft structures, military equipment and defence systems.

Outlook

The Long-term outlook for the global metal casting industry remains positive, supported by continued industrialisation, infrastructure expansion and technological advancements in manufacturing processes. Increasing demand from automotive, construction, energy and industrial equipment sectors is expected to sustain steady growth in the coming years.

However, the industry continues to face challenges including volatility in raw material prices, energy costs and tightening environmental regulations. Geopolitical tensions and disruptions in global supply chains may also influence input costs and trade dynamics.

Despite these challenges, growing investments in infrastructure, rising adoption of advanced manufacturing technologies and increasing demand for engineered metal components are expected to support sustained growth in the global metal casting industry over the coming decade.

(Source: IMAC Research Report)

Indian Metal Casting Industry Overview

Indias metal casting industry forms a critical pillar of the countrys manufacturing ecosystem, supplying components to sectors such as automotive, construction equipment, railways, mining, energy, aerospace and general engineering. Supported by a well-established foundry base and strong engineering capabilities, India is among the largest casting producers globally, with around 4,500-5,000 foundries producing a wide range of ferrous and non-ferrous castings for both domestic manufacturing and export markets.

Indias foundry market was valued at approximately USD 26.28 billion in 2025 and is projected to grow to USD 28.72 billion in 2026, reaching around USD 46.72 billion by 2031, reflecting a compound annual growth rate (CAGR) of about 10.22% between 2026 and 2031. The strong growth outlook is supported by expanding industrial production, increasing localisation of manufacturing and rising infrastructure investments.

Demand for metal castings in India is largely driven by the automotive and transportation sector, which accounted for around 31.9% of industry demand in 2025. Castings are widely used in engine components, transmission systems, chassis assemblies and structural parts. While electric vehicle adoption is gradually reducing the number of internal combustion components, it is simultaneously increasing demand for precision cast parts such as battery housings, motor casings and structural frames, particularly through aluminium high-pressure die casting (HPDC) processes.

Infrastructure development is another major growth driver for the industry. Rising investments in transport infrastructure, urban development, renewable energy projects and industrial facilities are increasing demand for heavy engineering components used in construction equipment, pipelines and machinery. Government policies supporting domestic manufacturing and infrastructure expansion are expected to further strengthen industry demand.

Sand casting remains the dominant production method, accounting for about 58.8% of the market share in 2025, owing to its flexibility and cost efficiency in producing large and complex components. In terms of materials, ferrous alloys such as cast iron and ductile iron accounted for approximately 84% of the market, reflecting their widespread use in automotive, machinery and infrastructure applications.

Technological advancements are gradually transforming the sector, with foundries increasingly adopting automation, casting simulation tools, digital twins, computer-aided design (CAD) and advanced die-casting technologies to enhance productivity and improve product precision. At the same time, increasing emphasis on sustainability and compliance with international environmental regulations is encouraging the adoption of energy-efficient furnaces, renewable power usage and greater utilisation of recycled metals.

Growth Drivers

Electric Vehicle and Automotive Localisation

Growing localisation of electric vehicle manufacturing is increasing demand for aluminium and precision die-cast components used in battery housings, motor casings and structural assemblies. As EV production scales up in India, foundries are witnessing rising demand for lightweight and high-performance cast parts.

Import Substitution and Domestic Manufacturing Policies

Government initiatives aimed at strengthening domestic manufacturing—such as higher import duties on certain casting products and localisation mandates—are encouraging OEMs to source components domestically. This trend is supporting capacity utilisation and order visibility for Indian foundries.

Vehicle Scrappage Policy and Scrap Availability

Indias Vehicle Scrappage Policy is improving the availability of ferrous and non-ferrous scrap in the domestic market. Increased scrap supply reduces input costs for foundries and improves melt efficiency, while also promoting more sustainable metal recycling practices.

Infrastructure and Capital Goods Expansion

Large-scale investments in infrastructure development— including railways, urban infrastructure, renewable energy systems and construction equipment manufacturing—are increasing demand for heavy engineering components produced through casting processes.

Growth in Renewable Energy and Industrial Equipment

Expansion of renewable energy infrastructure such as wind power and transmission equipment is creating demand for large, durable cast components used in turbines, gear housings and heavy machinery.

Export Opportunities and Global Supply Chain Integration

Indian foundries are increasingly integrated into global supply chains, supplying cast components to international OEMs across automotive, industrial equipment and energy sectors. Competitive manufacturing costs and improving quality standards are strengthening Indias export potential.

Adoption of Advanced Manufacturing Technologies

The increasing use of digital technologies such as casting simulation software, automation, AI-driven quality inspection and digital twin systems is improving productivity, reducing rejection rates and enhancing the precision of cast components, supporting long-term industry competitiveness.

Technological Advancements and Process Efficiency: Foundries are increasingly adopting advanced technologies such as computer-aided design (CAD), computer-aided manufacturing (CAM), casting simulation and additive manufacturing, enabling higher precision, improved process efficiency and reduced material wastage.

Outlook

The outlook for the Indian metal casting industry remains positive, supported by continued expansion in automotive manufacturing, infrastructure development, industrial equipment production and export opportunities. Rising localisation across automotive and electric vehicle supply chains, coupled with increasing investments in aerospace and renewable energy sectors, is expected to create new demand for specialised cast components.

However, the industry faces certain challenges, including volatility in raw material and energy costs, tightening environmental regulations and evolving global trade policies such as the European Unions Carbon Border Adjustment Mechanism (CBAM), which may impact export competitiveness for high-carbon cast products.

Despite these challenges, Indias expanding manufacturing base, policy support for domestic production and increasing adoption of advanced manufacturing technologies are expected to support sustained growth in the metal casting industry over the coming years.

(Source: Mordor Intelligence)

Position of the Company in the Foundry Market

India continues to remain one of the fastest-growing major economies, supported by strong domestic consumption, sustained infrastructure investments and expanding manufacturing activity. These macroeconomic trends have strengthened demand across sectors such as mining, construction equipment, railways and heavy engineering, which are key end-user industries for specialised steel castings.

Steelcast Limited has established a strong presence in the mining and earthmoving equipment sectors, which continue to account for a significant share of the Companys business. Increasing investments in infrastructure development, construction activities and mining operations are expected to support demand for heavy engineering equipment, thereby contributing to stable demand for specialised cast components.

Global supply chain realignments are also creating new opportunities for Indian manufacturers. With many global OEMs adopting a "China + 1" sourcing strategy to diversify their supply chains, India is increasingly emerging as an alternative manufacturing base for engineering components and industrial equipment. This shift is expected to enhance export opportunities for Indian foundries and strengthen Indias position in global manufacturing value chains.

At the same time, evolving global trade dynamics and relatively favourable trade relations between India and several major economies continue to support export growth for Indian manufacturers. As global customers seek reliable and diversified sourcing partners, Steelcast is well positioned to expand its participation in international supply chains through the development of new components and increased share of business with existing customers.

Leveraging its engineering capabilities, strong relationships with global OEMs and diversified sectoral presence, Steelcast continues to strengthen its position in the foundry industry while exploring new growth opportunities across both domestic and international markets.

Changes in Financial Performance

Particulars	FY 2025-26	FY 2024-25
Sales / Income from Operations ( Lakhs)	42,316.63	37,338.75
Other Income ( Lakhs)	1,545.07	722.62
Total Income ( Lakhs)	43,861.70	38,061.37
Total Expenditure (before Interest & Depreciation) ( Lakhs)	30,897.23	27,008.94
Operating Profit (EBITDA) ( Lakhs)	12,964.47	11,052.43
Operating Margin (%)	30.64	29.60
Profit After Tax ( Lakhs)	8,685.87	7,219.79
Return on Capital Employed (ROCE)* (%)	28.86	29.28
No. of Months Receivables (Receivables / Sales x 12)	3.07	3.13
Current Ratio (Current Assets / Current Liabilities)	5.01	4.01
Debt-Equity Ratio (Total Debt / Shareholders Equity)	-	-
Production (MT)	13,918	12,913

*ROCE = Tangible Net Worth + Total Long-Term Debt + Deferred Tax Liability

Industry Segment-wise Performance

Steelcast Limited caters to a diversified set of industries including mining, earthmoving equipment, construction machinery, railways and locomotives, cement and steel, ground engaging tools (GETs), transport and defence. These sectors are closely linked to infrastructure development, mining activity and industrial capital expenditure. The Companys diversified presence across these industries helps mitigate sector-specific cyclicality while supporting stable demand across domestic and export markets.

Mining

The mining industry is showing improvement as compared to FY 2024-25. The same trend is expected to show improvement in FY 2026-27, supported by stronger commodity demand and gradual recovery in global mining activity.

• Domestic Market: Domestic sales stood at 950 Lakhs in FY 2025-26, compared with 1,076 Lakhs in FY 2024-25, showing slight de-growth as compared to FY 2024-25. However, in the last quarter recovery in demand is witnessed which is likely to continue.

• Export Market: Export sales stood at 10,110 Lakhs in FY 2025-26, compared with 6,998 Lakhs in FY 2024-25 showing strong growth signs. Export demand is expected to remain in an uptrend manner, supported by improvement in international mining equipment demand.

Earthmoving Equipment

In line with the mining machinery sector, the earthmoving equipment industry is expected to maintain a positive outlook in FY 2026-27, supported by infrastructure development and construction activity.

• Domestic Market: Domestic sales stood at 8,690 Lakhs in FY 2025-26, compared with 8,567 Lakhs in FY 2024-25, showing slight improvement with major positive signs being seen in the last quarter. This trend is expected to continue in the coming months. This is

supported by sustained demand from infrastructure and construction equipment manufacturers.

• Export Market: Export sales stood at 12,991 Lakhs in FY 2025-26, compared with 10,175 Lakhs in FY 2024-25, with demand expected to improve as global equipment inventories normalise and operations resume.

Construction Equipment

The construction equipment sector continues to show steady growth, supported by increasing investments in infrastructure and urban development.

• Domestic Market: Domestic sales stood at 6,859 Lakhs in FY 2025-26, compared with 7,210 Lakhs in FY 2024-25. However, in later part of FY 2025-26, strong indications are seen which should continue in FY 2026-27 as well.

• Export Market: Export sales stood at 369 Lakhs in FY 2025-26, compared with 408 Lakhs in FY 2024-25. With new components for development and expansion of export programmes with existing customers this demand is likely to grow up further in coming years.

Electro Locomotives and Railways

Steelcast continues to strengthen its presence in the railway sector through development of new parts and expansion of its customer base. The Company has successfully completed the Association of American Railroads (AAR) audit and certification, which enhances its ability to supply to international railway OEMs.

Sales in this segment stood at 2,187 Lakhs in FY 2025-26, compared with 2,330 Lakhs in FY 2024-25. However, with AAR Certification in place and new parts developed, this sector should show good signs in the coming years.

Cement and Steel Sector

Demand from the cement and steel sectors remained stable during the year, supported by ongoing infrastructure and industrial investments. Sales from this segment stood at

362 Lakhs in FY 2025-26, compared with 389 Lakhs in FY 2024-25.

Ground Engaging Tools (GETs)

The Company expects significant growth in the Ground Engaging Tools (GET) segment with the development of new components and expansion of its customer base.

Steelcast has received new product development orders from existing customers in the United States and has also developed new customers in Australia, which is expected to support growth in this segment. Sales for FY 2025-26 stood at 137 Lakhs, compared with 167 Lakhs in FY 2024-25, and are expected to increase in the coming years as new programs move into commercial production.

Transport and Heavy Engineering

Steelcast also supplies cast components used in transport equipment and heavy engineering machinery. Demand in this segment remains linked to broader industrial production and infrastructure investments, with the Company continuing to develop new components for existing OEM customers.

Defence

The Company continues to explore opportunities in the defence sector, aligning with Government initiatives such as Atmanirbhar Bharat and Make in India, aimed at strengthening domestic defence manufacturing.

During the year, Steelcast received Sample order and Pilot order for export of defence components, and both the orders are successfully executed. Once the Pilot lot is approved by end customer, we expect good orders in the coming years.

Risk Management

Steelcast Limited operates in an evolving global business environment that presents a range of operational, financial and strategic risks. Recognising the importance of proactively managing these uncertainties, the Company has established a structured risk management framework that enables systematic identification, assessment and mitigation of potential risks. Risk management practices are integrated into the Companys strategic planning, operational processes and governance mechanisms, ensuring that key risks are continuously monitored and addressed across different levels of the organisation.

The Company operates in industries such as mining, construction equipment, railways and heavy engineering, which are inherently cyclical and closely linked to global economic conditions and capital expenditure cycles. Fluctuations in commodity demand, mining activity and infrastructure investments can influence order flows from OEM customers. To mitigate this risk, Steelcast continues to maintain a diversified sectoral presence and global customer base, enabling it to reduce dependence on any single industry or geography.

Given the Companys significant export orientation, foreign exchange volatility remains an important risk factor. Movements in global currency markets can impact revenue

realisations and margins. Steelcast actively monitors currency exposures and follows prudent financial practices to manage exchange rate fluctuations.

The foundry industry is also exposed to raw material and energy price volatility, particularly in steel scrap, alloys and power costs. Variations in these input costs can influence production economics and margins. The Company mitigates these risks through efficient procurement practices, operational cost management and continuous process improvements aimed at enhancing productivity.

Global geopolitical developments and evolving trade dynamics continue to influence supply chains and industrial demand. Ongoing geopolitical tensions, including conflicts affecting energy and logistics markets, may lead to fluctuations in shipping costs, commodity prices and global demand patterns. Steelcast maintains close engagement with customers and suppliers to manage such uncertainties and ensure supply chain continuity.

The industry is also witnessing increasing focus on environmental regulations, sustainability standards and carbon emission controls, particularly in export markets. Compliance with evolving regulatory frameworks requires continuous improvement in manufacturing processes and energy efficiency. The Company is therefore strengthening its operational practices and adopting more efficient technologies to align with emerging sustainability expectations.

In addition, the Company remains mindful of customer concentration risks, supply chain disruptions, technological changes and cyber security threats. Robust internal controls, information security systems and operational monitoring mechanisms have been implemented to safeguard business operations and protect critical data and assets.

Through continuous monitoring, periodic risk reviews and proactive mitigation strategies, Steelcast aims to enhance operational resilience and maintain business stability. The Companys risk management approach is designed not only to address existing risks but also to anticipate emerging challenges and opportunities in a rapidly evolving industrial landscape.

Quality Assurance

Steelcast continued to strengthen its quality assurance framework through continuous process improvements, advanced testing capabilities and the adoption of modern foundry technologies. The Company continues to strengthen its capability to deliver high-integrity cast components that meet stringent global quality standards.

During FY 2025-26, the Company undertook several initiatives to further enhance product quality, process reliability and operational efficiency.

Key initiatives undertaken during the year include:

• Adoption and absorption of digitalization technology for key process parameters for better control on process and data analysis.

• Study on use of gas diffuser in Induction furnace to make clean steel.

• Design and development of modified gating system in heavy casting to minimize turbulence and cereoxide generation during pouring.

• Design and development of special shape William core for blind riser.

• Study on role of micro alloy on impact properties in high strength low alloy steel.

• Use of Special design Ultrasonic TR Radius Probe to detect -Tiny defects on Critical Radius of casting.

• Feasibility to use of Phased array Ultrasonic Probe (PAUT) to detect defects on Complex shape high integrity castings.

Human Resources and Industrial Relations

Steelcast places strong emphasis on attracting, developing and retaining skilled talent to support its operational excellence and long-term growth. The Company fosters a work environment that encourages continuous learning, collaboration and professional development, enabling employees to remain agile in a dynamic industrial environment.

As of March 31, 2026, the Company had a workforce of 1,655 direct and indirect employees. Steelcast remains committed to strengthening employee engagement, productivity and workplace safety through structured training programmes and effective operational processes.

The Company maintains a strong focus on Environmental, Health and Safety (EHS) practices. Its EHS management framework adheres to rigorous standards and is supported by defined performance metrics and continuous monitoring systems. Ensuring the health and safety of employees remains a key priority, with strict adherence to safety protocols across all operations.

Investor Relations and Engagement

Steelcast recognises the importance of maintaining transparent and effective communication with the investment community. The Companys investor relations initiatives aim to strengthen long-term relationships with shareholders, analysts and investors through timely disclosure of relevant information and proactive engagement.

During FY 2025-26, the Company undertook several initiatives to strengthen investor engagement, including:

• Conducting earnings calls following the announcement of financial results

• Organising plant visits for analysts and investors to provide insights into the Companys operations and manufacturing capabilities

• Sharing investor presentations and regulatory disclosures with stock exchanges and hosting them on the Companys website

These initiatives help enhance transparency and build investor confidence in the Companys long-term growth prospects.

Internal Control Systems

Steelcast has established a robust internal control framework designed to ensure efficient conduct of operations, protection of assets, prevention and detection of fraud, and reliability of financial reporting.

The internal control system ensures the accuracy and completeness of accounting records, effective monitoring of operational performance and compliance with applicable statutory regulations. The Company continues to align its internal processes and controls with global best practices.

In addition to internal controls, the Company has appointed independent external audit firms as internal auditors to periodically review the effectiveness of internal control mechanisms. Internal audit reports are reviewed by the Audit Committee, along with management responses and corrective action plans.

Steelcast also operates a comprehensive budgetary control system, with clearly defined Key Performance Indicators (KPIs) for critical operational parameters. These KPIs are regularly monitored through management committee meetings chaired by the Executive Director and attended by departmental heads. Corrective and preventive actions are implemented where necessary to ensure operational efficiency and financial discipline.

Through this integrated governance framework, Steelcast continues to maintain strong financial discipline, operational transparency and effective risk management practices across its operations.

Cautionary Statement

Statements in this "Management Discussion and Analysis" describing the Companys objectives, projections, estimates, expectations or predictions 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 the Companys operations include global and Indian demand and supply conditions, finished goods prices, input materials availability and prices, cyclical demand and pricing in the Companys principal markets, changes in Government regulations, tax regimes, economic developments within India and the countries within which the Company conducts business and other factors such as litigation and labour negotiations. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, based on any subsequent development, information or events or otherwise.