Sterling Powergensys Ltd Management Discussions

ANNEXURE C

Your Directors have pleasure in presenting the management discussion and analysis report of the year ended on 31st March, 2026.

The financial year 2025-26 was a year of progress for Sterling Powergensys Limited, marked by improved operational performance and improved financial results. The Company continued to strengthen its presence in the renewable energy sector by focusing on the sale of solar systems, execution of solar power projects trading activities and is strategically exploring opportunities in emerging clean energy solutions, including Green Hydrogen projects, in line with Indias energy transition initiatives.

The renewable energy sector in India continued to witness robust growth during the year, supported by favorable Government policies, increasing investments in clean energy infrastructure and growing adoption of sustainable energy solutions. These developments created a conducive business environment for the Company and enabled it to capitalize on emerging opportunities in the solar energy sector.

During the financial year under review, the Company recorded Revenue from Operations of Rs. 2,380.05 Lakhs as against Rs. 1,260.40 Lakhs in the previous year, registering a growth of approximately 88.83%. Total Income increased to Rs. 2,441.07 Lakhs from Rs.1,390.02 Lakhs in FY 2024-25. The Company also reported a significant improvement in profitability, with Profit Before Tax increasing to Rs. 133.55 Lakhs and Profit After Tax increasing to Rs. 98.55 Lakhs, reflecting improved operational efficiency, better business volumes and prudent financial management.

The Company remains committed to providing quality products and services while strengthening customer relationships, improving operational efficiency and exploring new business opportunities in the renewable energy sector. Management continues to focus on sustainable growth through efficient execution, cost optimisation and value creation for all stakeholders.

Looking ahead, the management remains optimistic about the Companys future prospects. With Indias continued emphasis on renewable energy, increasing demand for solar power solutions and supportive policy initiatives, the Company is well positioned to leverage the opportunities emerging in the sector and achieve sustainable long-term growth.

The global economy demonstrated resilience during the financial year 2025-26 despite continuing geopolitical tensions, supply chain disruptions and fluctuating commodity prices. Easing inflation across major economies, improved labour market conditions and gradual moderation in monetary tightening contributed to stable global economic growth. The transition towards sustainable development and decarbonisation continued to accelerate worldwide, resulting in increased investments in renewable energy, clean technologies and energy-efficient infrastructure. Governments across developed and emerging economies continued to prioritize energy security and climate commitments, creating favorable conditions for long-term growth in the renewable energy sector.

India continued to remain one of the fastest-growing major economies in the world during FY 2025-26, supported by strong domestic consumption, increased public infrastructure spending, robust manufacturing activity and sustained policy reforms. According to the Ministry of Statistics and Programme Implementation (MoSPI), Indias real Gross Domestic Product (GDP) is estimated to have grown by approximately 6.5% during FY 2025-26. Stable macroeconomic fundamentals, increasing private investments and continued emphasis on infrastructure development have further strengthened Indias long-term growth outlook.

The Government of India continued to focus on renewable energy as a key pillar of sustainable economic development. Through various policy initiatives and budgetary support, the Government has accelerated investments in clean energy infrastructure, domestic manufacturing and grid modernisation. Programmes such as PM Surya Ghar: Muft Bijli Yojana, PM- KUSUM, the National Green Hydrogen Mission, the Production Linked Incentive (PLI) Scheme for High Efficiency Solar PV Modules and continued investment in Green Energy Corridors are expected to significantly strengthen Indias renewable energy ecosystem over the coming years.

Indias renewable energy sector continued to witness remarkable growth during the year under review. Solar energy remained the largest contributor to renewable capacity additions owing to its declining costs, technological advancements and increasing commercial viability. During FY 2025-26, India crossed the landmark milestone of 150 GW of cumulative installed solar capacity, reflecting the rapid pace of expansion in the countrys solar sector and reinforcing its commitment towards achieving 500 GW of non-fossil fuel-based installed electricity capacity by 2030.

Green Hydrogen is emerging as one of the key focus areas of Indias energy transition strategy. Supported by the National Green Hydrogen Mission, the Government aims to position India as a global hub for the production, utilisation and export of Green Hydrogen. The growing emphasis on decarbonisation across industries is expected to create new opportunities for companies engaged in renewable energy and allied sectors. Sterling Powergensys Limited continues to evaluate opportunities in this emerging segment as part of its long-term business strategy.

The rapid growth of utility-scale solar projects, commercial and industrial captive installations and rooftop solar systems has significantly expanded the addressable market for companies operating in the renewable energy sector. Simultaneously, increasing investments in Battery Energy Storage Systems (BESS), smart grid infrastructure, electric mobility and green hydrogen are creating new avenues for growth across the renewable energy value chain.

The domestic solar manufacturing ecosystem also continued to strengthen during the year. Government initiatives encouraging localisation of solar modules, cells and other critical components are expected to reduce import dependence, improve supply chain resilience and enhance Indias competitiveness as a global renewable energy manufacturing hub. Increasing participation by private sector enterprises and financial institutions has further accelerated investments in renewable energy infrastructure across the country.

The renewable energy sector continues to benefit from increasing environmental awareness, rising corporate commitments towards sustainability, favourable financing conditions and technological advancements that have improved the efficiency and affordability of solar power solutions. The declining cost of solar technology, coupled with supportive regulatory policies and improved project economics, has made renewable energy one of the most attractive investment sectors in India.

For Sterling Powergensys Limited, these industry developments present significant opportunities for sustainable growth. The Companys core business of supplying solar systems, executing solar power projects and undertaking allied renewable energy activities is well aligned with the countrys long-term energy transition objectives. The continued expansion of the renewable energy sector, increasing adoption of solar energy by industrial, commercial and residential consumers and supportive Government initiatives are expected to generate sustained demand for the Companys products and services.

The management remains confident that the favourable industry outlook, coupled with the Companys operational capabilities, customer-focused approach and commitment to quality, will enable Sterling Powergensys Limited to strengthen its market position and capitalise on the growing opportunities in Indias renewable energy sector while delivering sustainable value to its stakeholders.

Opportunities - The renewable energy sector in India continues to offer significant growth opportunities, driven by favourable Government policies, increasing environmental awareness and rising investments in clean energy infrastructure. The Governments continued focus on achieving 500 GW of non-fossil fuel-based installed electricity capacity by 2030, along with initiatives such as PM Surya Ghar: Muft Bijli Yojana, PM-KUSUM, and the National Green Hydrogen Mission, is expected to create sustained demand for solar energy solutions across residential, commercial and industrial sectors. The increasing adoption of solar power by industries and businesses to reduce energy costs, coupled with growing investments in infrastructure and sustainable development, presents significant opportunities for the Company. The expanding domestic manufacturing ecosystem and technological advancements in solar energy are also expected to support long-term growth. Sterling Powergensys Limited is well positioned to capitalise on these opportunities through its experience in solar systems, project execution and allied renewable energy activities. The Governments continued thrust on Green Hydrogen and other emerging clean energy technologies presents additional opportunities for the Company. Leveraging its experience in the renewable energy sector, the Company intends to explore these evolving opportunities in line with market developments and its long-term strategic objectives.

Threats: The renewable energy industry continues to be highly competitive, with increasing participation from established players as well as new entrants. Fluctuations in the prices of solar modules and other key raw materials, changes in Government policies, regulatory approvals, supply chain disruptions and intense pricing competition may impact the Companys operations and profitability. The business is also exposed to risks arising from changes in customer spending patterns, project execution timelines, availability of skilled manpower and evolving technological developments. However, the Company continuously monitors these risks and focuses on operational efficiency, prudent financial management, customer satisfaction and quality execution to minimise their impact and strengthen its competitive position in the market.

The Company is primarily engaged in the business of sale of solar systems, execution of solar power projects and allied renewable energy activities. During the financial year under review, the Company witnessed improvement in business performance. The Company also continued its trading activities, which contributed to its overall business performance.

The renewable energy sector continued to witness strong momentum during the year, providing opportunities for the Company to strengthen its market presence and expand its customer base. The management remains focused on delivering quality products and services while exploring business opportunities.

The outlook for the renewable energy sector in India remains highly encouraging, supported by the Governments continued focus on clean energy transition, increasing investments in renewable infrastructure and rising adoption of solar power across residential, commercial and industrial segments. With Indias commitment to achieve 500 GW of non-fossil fuel- based installed electricity capacity by 2030, the solar energy sector is expected to witness sustained growth in the coming years.

In addition to the growing solar energy market, Green Hydrogen is expected to emerge as a key driver of Indias clean energy transition. The Companys strategic focus on evaluating opportunities in this segment is expected to support its long-term growth objectives. While solar energy will continue to remain the Companys primary business focus, the management believes that Green Hydrogen and other emerging clean energy technologies offer significant potential for future business expansion.

Sterling Powergensys Limited is well positioned to benefit from these favourable industry trends. The Company will continue to focus on strengthening its presence in the solar energy sector by enhancing operational efficiency, expanding its customer base and delivering quality products and services. The management also intends to explore emerging opportunities in renewable energy and related businesses while maintaining financial discipline and prudent risk management.

The Company remains committed to creating sustainable value for its stakeholders through customer-centric solutions, technological advancement and continuous improvement in business processes. Backed by a positive industry outlook, supportive Government policies and increasing demand for renewable energy solutions, the management is confident of achieving sustainable growth and improving shareholder value in the years ahead.

Besides the supply chain dynamics for hydrogen and solar power equipments as was discussed in the previous report, the management has also identified certain issues like grid management with unpredictable environments, continuously evolving energy policy and regulations, Increased cyber security risk from expanded infrastructure as the major threats looming over the renewable energy sector however, with increased technological advancements in the distribution sector these threats can be easily overcome in near future. Even though the Company has no control over external factors which may adversely affect the Companys operation. These risk factors are continuously monitored by the management and necessary steps are taken to mitigate them.

The company involved in the renewable energy sector, has an internal control system that is commensurate with its size, scale, and complexity of operations. The companys internal control system is designed to ensure compliance with operating systems, accounting procedures, and policies. The Board of Directors actively monitors and evaluates the efficacy and adequacy of these internal controls, using reports from the internal audit function to identify areas for improvement and implement corrective actions. This approach helps strengthen the companys controls and maintain robust financial reporting practices.

During the year under review, the Company has recorded Total Income of Rs. 2,441.07 Lakhs, including Other Income, as against Total Income of Rs. 1,390.02 Lakhs in the previous financial year. The Company has generated a Profit after Tax of Rs. 98.55 Lakhs for the year ended March 31,2026, as against a Profit after Tax of Rs. 18.89 Lakhs in the previous financial year.

Company recognizes the importance of motivated and empowered employees and has a clear employee value proposition focused on employee development, a satisfying work environment, performance appraisal, and appropriate empowerment. Further the Company believes motivated and empowered employees are the cornerstone of competitive advantage. The company has been focusing on building a robust team to support its strategic growth, including its pioneering green hydrogen project. As of recent years, Sterling Powergensys Ltd. has emphasized the importance of human resource

management, although specific details on new initiatives or developments in this area are limited. The companys leadership, such as Mr. Navinchandra Joshi, brings extensive experience in managing global operations and driving strategic growth, which is crucial for navigating the complex landscape of renewable energy and hydrogen sectors.

Following are the key financial ratios computed on Standalone basis:

There is significant change (i.e. 25% or more as compared to the immediate preceding financial year) in the above key financial ratios due to financial distress of the Company.

Statement in this report on Management Discussion & Analysis describing the Companys projections and estimates may be forward looking and are based on certain assumptions and expectations of future events. Actual results may differ from projections due to demand-supply condition, prices of finished goods and raw material, changes in Government regulations, tax structure and other factors. The Company assumes no responsibility in respect of forward-looking statements which may undergo change on the basis of subsequent development events.