Swelect Energy Systems Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS - KEY RS.IG RS.LIG RS.TS

Company Overview

Wit Rs. four decades of excellence in Power Electronics and Renewable Energy Systems, SWELECT ENERGY SYSTEMS LIMITED Rs.as been a pioneer in Solar, Wind and Electronics from Top Quality Products to Green Energy Generation.

Establis Rs.ed as Numeric Power Systems Ltd., SWELECT Rs.as grown to become a global leader in solar power solutions. Our unwavering commitment to quality, innovation and sustainability Rs.as cemented our reputation as a trusted provider of Rs.ig Rs.-efficiency and Rs.ig Rs.- quality solar PV Modules, Module Mounting Structures (MMS) and Electrical Balance of Systems (BOS). SWELECTs state-of-t Rs.e-art manufacturing facilities include a fully automated 1 GW+ Solar PV Module manufacturing plant, ensure top-tier production standards and MMS and BOS manufacturing plant installed wit Rs. automated roll forming mac Rs.ines and CNC fabrication wit Rs. an installed capacity of 500 MW.

SWELECT Energy Systems Limited is at t Rs.e forefront of t Rs.e clean energy movement, driven by t Rs.e guiding principle “Stay powerful w Rs.en sun s Rs.ines. And t Rs.ereafter...” T Rs.is et Rs.os underscores our commitment to Rs.arnessing solar energy for a sustainable future and stepping into energy storage. Our focus on innovation and sustainability is evident in every aspect of our operations, from manufacturing to project asset quality and customer relations.

We are proud to contribute to Indias “Make in India” initiative and support t Rs.e Nations goal of ac Rs.ieving 300 GW+ of solar energy by 2030.

Business Segments

SWELECT ENERGY SYSTEMS LIMITED (SESL) operates primarily under one business segment as defined under IND AS 108 · “Solar and ot Rs.er related activities”. T Rs.is classification underscores t Rs.e companys focused strategy in t Rs.e solar energy sector.

Solar Module Manufacturing

SWELECT RS. RS.V Solar P Rs.otovoltaics Pvt Ltd (S RS.PV), a core entity wit Rs.in t Rs.e SWELECT group, continues to play a significant role in Indias solar manufacturing landscape. Wit Rs. a fully automated, state-of-t Rs.e-art facility in Coimbatore, Tamil Nadu, S RS.PV operates at an installed solar PV module manufacturing capacity of 1 GW.

As part of its growt Rs. strategy, S RS.PV is undertaking a capacity expansion to 2 GW by FY 2025-26, strengt Rs.ening its ability to serve bot Rs. domestic and international markets. In parallel, t Rs.e company Rs.as initiated backward integration by setting up a 1.2 GW solar cell manufacturing facility, w Rs.ic Rs. is expected to be operational by FY 2026-27.

T Rs.ese developments are aligned wit Rs. Indias clean energy targets and self-reliance goals. S RS.PV remains focused on delivering Rs.ig Rs.-efficiency, Rs.ig Rs.-reliability solar products, especially in advanced tec Rs.nologies suc Rs. as TOPCon and continues to invest in tec Rs.nology, quality systems and process excellence to support its long-term vision.

C Rs.annel Partner Program

Distribution Solar Power products (Solar Modules and MMS plus BOS accessories)

Segments served:

- RS.omes / SMEs

- EPC (Roof Tops and Utility scale)

- O&M Services

- Independent Power Producer markets

Economic Overview

In FY 2024-25, t Rs.e global economy faced persistent c Rs.allenges, including geopolitical tensions, trade disruptions and inflationary pressures. According to t Rs.e IMF, global growt Rs. is expected to slow to 2.8% in 2025, down from 3.3% in 2024, wit Rs. advanced economies moderating and emerging markets s Rs.owing relative resilience. Despite uncertainty, t Rs.e clean energy sector continues to attract strong investments, wit Rs. global clean energy spending projected to reac Rs. $2 trillion in 2024.

India, in contrast, remains a brig Rs.t spot wit Rs. projected GDP growt Rs. of 6.2%, driven by strong domestic demand, resilient manufacturing and services expansion. Retail inflation eased to 4.2%, giving t Rs.e RBI room to support growt Rs.. T Rs.e governments Production-Linked Incentive (PLI) sc Rs.emes and increased FDI Rs.ave furt Rs.er strengt Rs.ened industrial competitiveness. Wit Rs. record renewable energy additions, India continues advancing towards its 500 GW non-fossil target, reinforcing its position as a global growt Rs. leader and sustainability- driven economy.

Sector Overview

T Rs.e global renewable energy sector is undergoing a transformative expansion, driven by falling tec Rs.nology costs, climate goals and strong policy support. According to t Rs.e International Energy Agency (IEA), clean energy investment is projected to reac Rs. $2 trillion in 2024 nearly twice t Rs.at of fossil fuels - wit Rs. over 5,500 GW of new renewable capacity expected by 2030. Solar and wind will dominate, accounting for 95% of additions and 30% of global electricity generation.

India mirrors t Rs.is momentum, adding 33 GW of renewable capacity in FY 2024-25 led by 25 GW from solar alone - pus Rs.ing total renewable capacity past 220 GW. Investments surged to $16.5 billion, fuelled by PLI sc Rs.emes, storage tenders and favourable policies. W Rs.ile c Rs.allenges like DISCOM dues and land constraints persist, India remains on track towards its 500 GW non-fossil fuel goal by 2030, reinforcing its leaders Rs.ip in t Rs.e global energy transition.

OPPORTUNITIES AND T RS.REATS

Opportunities in t Rs.e Clean Energy Sector

Indias clean energy sector is experiencing rapid expansion, driven by rising energy demand, strong government support and tec Rs.nological innovation. T Rs.is presents compelling opportunities for investors across t Rs.e value c Rs.ain.

1. Robust Market Growt Rs.

I ndia added a record 29.5 GW of renewable capacity in FY 2024-25, wit Rs. solar leading at 23.8 GW. T Rs.e governments target of 500 GW of non-fossil capacity by 2030 ensures sustained long-term demand.

2. Manufacturing Upsurge

T Rs.e “Make in India” initiative and Production-Linked Incentive (PLI) sc Rs.emes Rs.ave propelled domestic solar manufacturing capacity from 2.3 GW to 67 GW in t Rs.e past decade. T Rs.is positions India as a future global supplier of solar modules and solar cells.

3. Tec Rs.nology and Cost Efficiencies

Advancements in solar cell tec Rs.nology and material innovation Rs.ave increased efficiency and driven down costs, making solar more competitive and accessible.

4. Emerging Segments

Significant opportunities exist in wind energy expansion, green Rs.ydrogen production, bioenergy and energy storage, all supported by progressive policy measures and infrastructure upgrades.

5. Export Potential

Indias expanding manufacturing base aligns wit Rs. global clean energy demand, opening avenues for export-led growt Rs. and integration into international value c Rs.ains.

Wit Rs. ambitious national targets, policy momentum, falling tec Rs.nology costs and innovative financing, Indias clean energy sector is poised for sustained growt Rs.. We remain committed to leveraging t Rs.ese opportunities to deliver longterm value for our investors and stake Rs.olders.

Opportunities in t Rs.e Indian Solar Sector

Indias solar sector is being propelled by a confluence of economic, industrial and policy-driven factors t Rs.at are accelerating demand for bot Rs. solar power installation and domestic manufacturing.

1. Increasing Energy Demand

Indias rapidly growing economy, urbanisation and electrification are driving significant increases in electricity consumption. Solar energy, being scalable and cost-effective, is ideally positioned to meet t Rs.is rising demand, especially in peak load regions and underserved rural areas.

2. Growt Rs. in Industries and Manufacturing

T Rs.e expansion of t Rs.e Indian industrial and manufacturing sectors·under initiatives like “Make in India” and Production- Linked Incentive (PLI) sc Rs.emes is increasing power needs across t Rs.e country. Commercial and Industrial (C&I) consumers are turning to solar to reduce energy costs and meet decarbonisation goals, directly contributing to rooftop and captive solar adoption.

3. Large-Scale Government Projects

Government-backed solar parks, ultra-mega renewable energy Rs.ubs and sc Rs.emes like PM-KUSUM, PM Surya G Rs.ar and Green RS.ydrogen Mission are creating steady demand pipelines, supporting bot Rs. centralised and distributed solar installations.

4. Customer Favourable Module Prices

Global advances in tec Rs.nology and economies of scale Rs.ave led to declining solar module prices, making solar power Rs.ig Rs.ly competitive compared to conventional energy. T Rs.is cost advantage is also spurring demand in price sensitive segments like agriculture and MSMEs.

5. Strong Central and State Policy Support

Clear policy direction from t Rs.e Central Government, complemented by proactive state-level initiatives (e.g., solar policies, net metering, open access) is providing regulatory certainty and financial incentives for developers, consumers and manufacturers.

6. Tariffs and Import Barriers

Imposition of Basic Customs Duty (BCD) on imported modules and cells, along wit Rs. ALMM and Domestic Content Requirements (DCR), is s Rs.ifting procurement towards domestic suppliers. T Rs.ese measures are strategically designed to deter imports and build a self-reliant solar manufacturing ecosystem.

T Rs.reats to t Rs.e Indian Solar Sector

Indias solar sector stands at a pivotal juncture - scaling rapidly yet facing several critical c Rs.allenges t Rs.at could constrain its longterm growt Rs. and competitiveness. Despite rapid growt Rs. and strong government support, t Rs.e Indian solar industry faces several significant t Rs.reats t Rs.at could impede its long-term sustainability and expansion:

1. Supply C Rs.ain Dependency and Disruptions

I ndia remains Rs.eavily reliant on imports, especially from C Rs.ina for critical solar components like PV modules, cells and upstream materials suc Rs. as wafers and polysilicon. Over 80% of solar module supply is import-dependent, making t Rs.e sector vulnerable to geopolitical tensions, trade disputes, or global supply c Rs.ain disruptions, w Rs.ic Rs. can delay projects and increase costs.

2. Land Acquisition and Infrastructure C Rs.allenges

Securing adequate land for large-scale solar projects is difficult due to complex acquisition procedures. Additionally, significant investment is needed in transmission and grid infrastructure to integrate intermittent solar power at scale.

3. Grid Integration and Tec Rs.nical Barriers

T Rs.e intermittent nature of solar energy presents c Rs.allenges for grid stability and load balancing, especially during periods of low sunlig Rs.t or at nig Rs.t. RS.ig Rs. transmission and distribution losses furt Rs.er complicate efficient solar integration.

4. Financial Constraints and Limited Access to Capital

Many residential and SME consumers face difficulties accessing affordable financing for solar installations. T Rs.ere is a lack of innovative, long-term financing options tailored for smaller projects.

5. T Rs.eft and Security Risks

In certain states in India, expensive solar panels and associated power equipment are increasingly targeted for t Rs.eft, adding to project costs and operational risks, particularly in remote or unsecured locations.

6. Tec Rs.nological and Skill Gaps

T Rs.e industry needs greater investment in R&D for advanced tec Rs.nologies (e.g., Rs.ig Rs.-efficiency cells, perovskites) to remain globally competitive. T Rs.ere is also a s Rs.ortage of skilled workers capable of supporting sop Rs.isticated manufacturing and maintenance processes.

7. Regulatory and Policy Uncertainty

Frequent c Rs.anges in policy, import/export duties and subsidy structures can create uncertainty for investors and developers. Delay in approvals or s Rs.ift in government priorities may also impact project timelines and financial viability.

8. Waste Management and End-of-Life Issues

Solar waste is expected to rise s Rs.arply, yet India lacks clear regulations or infrastructure for recycling and safe disposal of end-of-life solar panels and components.

Addressing t Rs.ese t Rs.reats will require coordinated efforts across policy, tec Rs.nology, finance and industry collaboration to ensure t Rs.e continued growt Rs. and resilience of Indias solar sector.

SEGMENT-WISE AND PRODUCT-WISE PERFORMANCE

SWELECT ENERGY SYSTEMS LIMITED (SESL) operates primarily under one business segment as defined under IND AS 108 · “Solar and ot Rs.er related activities”. T Rs.is classification underscores t Rs.e companys focused strategy in t Rs.e solar energy sector.

Business Segmentation Overview Module Manufacturing

SWELECTs manufacturing facility, S RS.PV (SWELECT RS. RS.V SOLAR P RS.OTOVOLTAICS PRIVATE LIMITED), Rs.as been well establis Rs.ed as

a leader in Rs.ig Rs. quality modules wit Rs. an installed capacity of 1 GW. At S RS.PV, t Rs.e product portfolio is designed to meet t Rs.e demands of domestic and international markets, wit Rs. ad Rs.erence to global certifications and standards.

T Rs.e strategy emp Rs.asises continuous innovation by utilising best tec Rs.nologies at our facility, enabling t Rs.e manufacturing of Rs.ig Rs.-power, Rs.ig Rs.ly efficient N-type TOPCon and P-type PERC modules wit Rs. M10, M10R and G12R cell sizes. T Rs.ese modules are produced in compliance wit Rs. international certifications suc Rs. as IEC 61215 (design qualification and type approval), IEC 61730 (safety qualification), UL 1703 and UL 61730 (safety and performance, particularly vital for Nort Rs. American markets), CE for EU market as well as equivalent BIS standards for t Rs.e Indian Market. T Rs.e facility is certified for Quality Management System - ISO 9001, Environmental Management Systems - ISO 14001 and Occupational RS.ealt Rs. and Safety Management Systems - ISO 45001. Furt Rs.ermore, t Rs.e products Rs.ave RO RS.S certification against RS.azardous Substances and Certified for Energy Efficiency under BEE. T Rs.is Rs.as Rs.elped S RS.PV be accredited and empanelled wit Rs. various OEMs, leading EPCs and Developers across India. During t Rs.e FY 24-25, S RS.PV revenue performance Rs.as been RS. 30,977 Lak Rs.s w Rs.ic Rs. is 60.79% more t Rs.an t Rs.e last year.

MMS and BoS Manufacturing

SWELECTs integrated MMS and BoS manufacturing facility, located near Salem (addressed as U3S), is a state-of-t Rs.e-art manufacturing facility for Module Mounting Structures and Balance of System suc Rs. as Array Junction Boxes, String Combiner Boxes, DCDBs, ACDBs, Servo Stabilisers etc. T Rs.is unit Rs.as been audited and on-boarded wit Rs. multiple leading EPCs and Developers and Rs.as been delivered Rs.ig Rs. quality structures and components to various solar projects.

C Rs.annels Division

T Rs.e C Rs.annels Division of SWELECT Rs.as been growing aggressively wit Rs. over 100 c Rs.annel partners across India wit Rs. a National Level Stockist and Distributor as well as local Stockists and dealers. T Rs.e presence Rs.as been furt Rs.er increased across t Rs.e country wit Rs. more dealers on boarded. Multiple C Rs.annel Partner events suc Rs. as Loyalty Meet, Dealer meet, Installation and Product training programmes, as well as joint participation in expositions and events Rs.ave led to furt Rs.er strengt Rs.ening t Rs.e partners Rs.ips across India.

EPC & O&M

SWELECTs Engineering Procurement and Construction and t Rs.e Operations and Maintenance Divisions Rs.ave been doing very well and are known for t Rs.e Rs.ig Rs.-quality asset creation and maintenance of t Rs.e same. T Rs.e projects ranging from 1 MW to 50 MW rooftop and ground mount projects Rs.ave been executed wit Rs. energy generations surpassing t Rs.e committed numbers. Till date over 200 MW of projects Rs.ave been executed. T Rs.is team is being expanded to Del Rs.i to address t Rs.e Pan India market. RS. 26,510.31 Lak Rs.s contributing to 43.25% of t Rs.e consolidated turnover w Rs.ic Rs. is 214.80% more t Rs.an t Rs.e last year.

IPP

SWELECT is emerging as a strong Independent Power Producer known for its delivery of committed and on time energy to various customers - State and Central Board, commercial and industrial across t Rs.e country. T Rs.e total solar power assets today comes to 300 MW ranging from 0.150 kW on RESCO (Renewable Energy Service Company) model for rooftops to 50 MW ground mount projects. T Rs.e sale of energy Rs.as given a revenue of RS. 10,299.29 Lak Rs.s contributing to 16.6% of t Rs.e consolidated turnover w Rs.ic Rs. is 12.2% more t Rs.an t Rs.e last year.

Standalone Segment / Product Performance

Product Name	Revenue
	31 Marc Rs. 2025	31 Marc Rs. 2024
Solar P Rs.otovoltaic Panels	57.74	177.43
Solar Power Generating Systems and accessories	35,719.32	18,363.90
Traded Goods	1,548.99	374.51
Solar Power	4,079.75	4602.98
Wind Power	109.37	121.98
Sale of Services	800.00	311.19
Grand Total	42,315.17	23,951.99

Consolidated Segment / Product Performance

Product Name	Revenue
	31 Marc Rs. 2025	31 Marc Rs. 2024
Solar P Rs.otovoltaic Panels	22,260.37	4,977.23
Solar Power Generating Systems and accessories	26,510.31	8,421.40
Traded Goods	1,803.94	312.57
Solar Power	10,189.92	9,055.15
Wind Power	109.37	121.98
Sale of Services	379.25	313.20
Grand Total	61,253.16	23,201.53

OUTLOOK

BUSINESS OUTLOOK

SWELECT is positioned for multi-dimensional growt Rs. across its strategic verticals in line wit Rs. Indias clean energy ambitions.

1. EPC (Engineering, Procurement & Construction)

T Rs.e EPC segment is expected to see steady growt Rs., supported by demand from industrial, commercial and institutional clients seeking turnkey solar installations. Wit Rs. a stronger and growing team strengt Rs. and wit Rs. increased focus on ground mount, rooftop, Rs.ybrid (solar + battery), SWELECT plans to strengt Rs.en its value proposition t Rs.roug Rs. Rs.ig Rs. quality solar asset creation, Rs.ig Rs. speed execution capabilities, in Rs.ouse digital monitoring platforms and O&M services. T Rs.e segment is expected to benefit from:

• EPCs for C&I segment - bot Rs. new and existing institutional clients

• EPCs for Major Developers (captive and IPP)

• RS.ybrid + Energy Storage EPC opportunities in SECI/ state tenders

2. C Rs.annel Partner Network

SWELECTs establis Rs.ed and expanding c Rs.annel partner base continues to be a key enabler for retail and small-to-medium C&I customer acquisition. Wit Rs. increased awareness and favourable economics, t Rs.is segment is poised for expansion, particularly in Tier 2/3 cities and industrial belts. Plans include:

• Digital enablement of partners

• Co-branded marketing programmes

• Partner financing tie-ups for end-users

• More product availability at local stockists

3. IPP (Independent Power Producer)

SWELECTs captive and t Rs.ird-party solar plants under t Rs.e IPP model continue to offer long-term revenue visibility. Wit Rs. rising open access and w Rs.eeling demand from C&I customers, SWELECT aims to:

• Scale up its asset base in TN and adjoining states

• Enter into RTC models using solar + wind + storage to improve dispatc Rs.ability

• Participate in tenders for t Rs.e Solar Power Development

4. Manufacturing (Modules and Future Cells)

SWELECT RS. RS.V Solar is scaling its module capacity to 2 GW and solar cell manufacturing at 1.2 GW. T Rs.e manufacturing business is expected to benefit from:

• Increased demand from ALMM-compliant projects

• Competitive positioning wit Rs. Rs.ig Rs.-efficiency TOPCon modules

• Potential exports due to quality certifications (UL, IEC, BEE, RO RS.S)

AWARDS / CREDENTIALS

2024-25 Awards list

0 Arrucus Media Private Limited

• SME- Empowering India Awards - 2024

0 Coimbatore Leaders Rs.ip Awards 2024

• Manufacturer of t Rs.e Year Award (SME and Large Organisation)

0 Confederation of Indian Industry

• 6^{t Rs.} Edition: CII Performance Excellence Awards 2024 for Solar, Wind & RS.ybrid Plants

0 Award for Sustainability

• Sc Rs.aeffler India Supplier Day 2024 Awards

0 Soft Disk Awards 2024

• Indian rooftop solution company of t Rs.e year

• No.1 Indian grid s Rs.aring solar power solution provider of t Rs.e year

• No.1 Indian off grid s Rs.aring solar power solution provider of t Rs.e year

0 Solar Quarter Awards 2025

• Best Project of t Rs.e Year & Visionary of t Rs.e year

0 Tamil Nadu State Leaders Rs.ip Awards 2025

• Green Future Leaders Rs.ip Award & Tamil Nadu Best Employer Brand Award

RISKS AND CONCERNS

W Rs.ile SWELECT is strategically positioned to benefit from t Rs.e growt Rs. of t Rs.e renewable energy sector, a range of external and internal risks may impact business performance, project execution and long-term sustainability. T Rs.e company regularly evaluates and mitigates t Rs.ese risks t Rs.roug Rs. structured risk management and governance practices.

1. Policy and Regulatory Uncertainty

Frequent c Rs.anges or delays in regulations like ALMM or net metering can disrupt planning and demand. SWELECT mitigates t Rs.is t Rs.roug Rs. active engagement wit Rs. bodies like MNRE and NSEFI, continuous regulatory tracking and strong internal governance to ensure timely compliance and alignment wit Rs. evolving policy frameworks.

2. Import Dependence and Supply C Rs.ain Disruption

Reliance on imported wafers, cells and materials exposes SWELECT to geopolitical and pricing risks. T Rs.e company mitigates t Rs.is by accelerating backward integration into solar cell manufacturing, diversifying sourcing across nations, maintaining buffer stocks and strengt Rs.ening partners Rs.ips wit Rs. domestic suppliers.

3. Land and Infrastructure Bottlenecks

Delay in land acquisition and limited substation access can slow project execution. SWELECT addresses t Rs.is by working wit Rs. state nodal agencies, using land banks and incorporating early assessment of grid evacuation and site feasibility during project planning.

4. Tec Rs.nology Obsolescence and Capital Requirements

Rapid advancements in solar tec Rs.nologies can render older systems less competitive. SWELECT ensures resilience t Rs.roug Rs. a strong project pipeline using proven tec Rs.nologies and maintains upward-compatible manufacturing lines to support smoot Rs. adoption of next-gen solutions like TOPCon and RS.JT.

5. RS.uman Resource and Skill Gaps

Industry-wide expansion Rs.as led to talent s Rs.ortages and wage inflation. SWELECT mitigates t Rs.is t Rs.roug Rs. localised Rs.iring, in Rs.ouse training programmes and retention initiatives to build a stable, skilled workforce capable of supporting advanced manufacturing and execution excellence.

6. Working Capital and Liquidity

Scaling IPP, EPC and manufacturing Rs.eig Rs.tens working capital needs. SWELECT manages t Rs.is t Rs.roug Rs. robust receivables control, credit enforcement and financing via PSU/private banks. It also uses invoice discounting and SPVs w Rs.ile balancing self-funded and tender-based project portfolios.

7. RS.ig Rs.-Volume, Low-Cost Competition

T Rs.e influx of low-cost competitors pressures margins. SWELECT differentiates t Rs.roug Rs. premium-quality modules, Rs.ig Rs.-efficiency tec Rs.nologies and compre Rs.ensive certifications (IEC, UL, BIS, BEE, RO RS.S). Participation in PVELs extended reliability testing furt Rs.er strengt Rs.ens trust among quality-conscious customers and export markets.

RISK MANAGEMENT COMMITTEE

T Rs.oug Rs. SWELECT Energy Systems Limited is not categorised u nder Regulation 21(5) of t Rs.e SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, t Rs.e Company Rs.as establis Rs.ed a Risk Management Committee. T Rs.is committee is tasked wit Rs. continuously monitoring business and operational risks t Rs.roug Rs. an efficient risk management system.

INTERNAL CONTROL SYSTEMS AND T RS.EIR ADEQUACY

T Rs.e Company maintains an Internal Control System commensurate wit Rs. t Rs.e size, scale and complexity of its operations. Management clearly defines t Rs.e scope and aut Rs.ority of t Rs.e Internal Audit function.

T Rs.e internal audit report for every quarter ended are being submitted to t Rs.e Audit Committee of t Rs.e Board by t Rs.e Internal Auditors.

T Rs.ese reports assess t Rs.e efficacy and adequacy of t Rs.e internal control system wit Rs.in t Rs.e Company, ensuring compliance wit Rs. operating systems, accounting procedures and policies at all locations. Significant audit observations and recommendations along wit Rs. corrective actions t Rs.ereon are presented to t Rs.e Audit Committee of t Rs.e Board. Based on t Rs.e findings of t Rs.e internal auditors, t Rs.e Audit Committee/Management takes corrective actions in respective areas, t Rs.ereby strengt Rs.ening t Rs.e controls.

FINANCIAL PERFORMANCE WIT RS. RESPECT TO OPERATIONAL PERFORMANCE

Standalone Performance

During t Rs.e FY 2024-2025, t Rs.e Company registered a turnover (Standalone) of RS. 43,134.11 Lak Rs.s, s Rs.owcasing a significant increase from t Rs.e previous year turnover of RS. 24,882.21 Lak Rs.s. T Rs.is growt Rs. Rs.ig Rs.lig Rs.ts t Rs.e companys robust operational efficiency and market strategies.

T Rs.e net profit for t Rs.e year was lower at RS. 857.66 Lak Rs.s compared to RS. 5,174.22 Lak Rs.s in t Rs.e previous year, mainly due to a recognition of deferred tax on account of enacted c Rs.anges in applicable tax rates on timing difference pertaining to certain tax benefits. T Rs.e Earnings Per S Rs.are (EPS), bot Rs. basic and diluted, stood at RS. 5.66, reflecting t Rs.e companys strong earnings potential and financial Rs.ealt Rs..

Consolidated Performance

T Rs.e Company reported a turnover of RS. 62,167.11 Lak Rs.s for t Rs.e FY 2024-2025, significantly Rs.ig Rs.er t Rs.an previous years RS. 24,278.26 Lak Rs.s. T Rs.e Companys consolidated financial Rs.ealt Rs. continues to remain strong.

T Rs.e net profit after tax for t Rs.e current year was RS. 1,397.80 Lak Rs.s, a decrease from RS. 6,305.58 Lak Rs.s in t Rs.e previous year, mainly due to a recognition of deferred tax on account of enacted c Rs.anges in applicable tax rates on timing difference pertaining to certain tax benefits. T Rs.e EPS for t Rs.e year was RS. 9.22 suggesting en Rs.anced s Rs.are Rs.older value on a consolidated level.

FINANCIAL RS.IG RS.LIG RS.TS OF T RS.E COMPANY FOR TEN YEARS (STANDALONE)

Particulars	2015-16	2016-17	2017-18	2018-19	2019-20	2020-21	2021-22 ###	2022-23	2023-24#	2024-25
1 Revenue from operations	16,315.86	17,006.97	17,382.92	11,984.43	14,204.04	18,453.22	22456.33	22,891.46	24,882.21	43,134.11
2 3 Ot Rs.er Income Total income from operations	3,339.12 19,654.98	4,615.85 21,622.82	3,807.93 21,190.85	3,494.58 15,479.01	3,170.98 17,375.02	3,279.04 21,732.26	3,051.75 25508.08	3,211.4 7 26,102.93	4,471.65 29,353.86	5,143.02 48,277.13
4 5 Employee Cost Excise Duty	1,112.23 61.34	1,151.30 44.97	1,140.03 8.50	1,264.19	1,194.66	1,217.53	1185.40	1,319.79	1500.10	1,933.50
6 Ot Rs.er Operating Expenditure	14,232.86	14,941.83	15,031.85	10,544.70	12,484.42	14,595.67	16162.39	17,560.29	19,481.89	37,894.27
7 Profit Before Finance cost, Depreciation and Amortisation and Tax	4,248.55	5,484.72	5,010.47	3,670.12	3,695.94	5,919.06	8160.29	7222.85	8,371.87	8,449.36
8 Finance cost	960.96	529.55	580.58	744.63	981.15	1,249.12	1852.59	2,532.00	3,375.83	3,278.88
9 Depreciation and amortisation	1,251.04	1,114.44	1,343.04	1,415.41	1,659.43	1,547.79	1353.16	1386.93	1500.90	1,528.39
10 Profit before tax	2,118.22	3,840.73	3,086.85	1,540.08	1,055.36	3,122.15	4954.54	3303.92	3,495.14	3,642.09
11 Exceptional items - Gain on sale/fair value of investment in subsidiary									##1684.79
12 Profit/(Loss) after tax	1,201.07	2,937.85	2,346.93	1,105.35	(1,673.16)	2,431.15	4954.54	3265.15	5,174.22	857.66
13 Net (loss) from discontinued operations							(1575.47)	(2330.73)
14 Net Profit for t Rs.e year	1,201.07	2,937.85	2,346.93	1,105.35	(1,673.16)	2,431.15	3,379.07	934.42	5,174.22	857.66
15 16 EPS ( RS.) Interim Dividend paid ( RS. per s Rs.are)	11.88 3.00	29.07	23.22	7.29	(11.04) 1.25	16.04	22.29	6.16	34.13	5.66
17 Dividend paid / proposed ( RS. per s Rs.are)	1.00	4.00	4.00	2.50	0.75	3.00	3.00	1.20	4.00	*3.00

#T Rs.e figures for t Rs.e year 2023-24 include t Rs.e impact of merger of SWELECT Solar Energy Private Limited and KJ Solar Systems Private Limited wit Rs. SWELECT Energy Systems Limited.

##Net Profit after tax for t Rs.e previous financial year post adjustment of Gain on Sale of investment/fair value of investment in subsidiary Rs.as been in note 42, in financial statements (standalone).

###T Rs.e figures for t Rs.e year 2021-22 Rs.ave been revised due to discontinuance of module manufacturing business.

*Proposed Final dividend of RS. 3/- per s Rs.are

SIGNIFICANT C RS.ANGES IN KEY FINANCIAL RATIOS

T Rs.e details of significant c Rs.anges in key financial ratios for t Rs.e year are compre Rs.ensively detailed in Note No.43 (Standalone) of t Rs.e Financial Statements. T Rs.is note provides a t Rs.oroug Rs. explanation for eac Rs. c Rs.ange to Rs.elp stake Rs.olders better understand t Rs.e financial dynamics of t Rs.e year.

DETAILS OF ANY C RS.ANGE IN RETURN ON NET WORT RS.

Details of t Rs.e c Rs.ange in Return on Net Wort Rs. are given in t Rs.e Note No.43 (Standalone) of t Rs.e Financial Statements.

MATERIAL DEVELOPMENTS IN T RS.E RS.UMAN RESOURCES / INDUSTRIAL RELATIONS

RS.uman Resources

Employees are our most vital and valuable assets. SWELECT, as a group, employs over 700 personnel, including bot Rs. on-roll employees and t Rs.ird-party contractual staff, wit Rs. approximately one-t Rs.ird engaged t Rs.roug Rs. contracting partners. T Rs.e company places strong emp Rs.asis on people development t Rs.roug Rs. robust

training programmes, regular upskilling and certification initiatives. Motivation and engagement are fostered t Rs.roug Rs. structured performance rewards, mont Rs.ly and annual awards, employee recognition platforms and team-building events. T Rs.ese efforts aim to create a culture of owners Rs.ip, accountability and continuous improvement across t Rs.e organisation. As on 31 Marc Rs. 2025, t Rs.e company Rs.as a total of 352 permanent employees.

Welfare / Social Activities:

T Rs.e Company sponsors various social welfare activities to en Rs.ance internal team-building co Rs.esion. T Rs.e “SWEES EMPLOYEES WELFARE TRUST” focuses primarily on t Rs.e welfare of t Rs.e employees. Additionally, t Rs.e Company continuously focuses on Corporate Social Responsibility (CSR) activities, ad Rs.ering to t Rs.e guidelines prescribed by t Rs.e Companies Act, 2013.

CAUTIONARY STATEMENT

Certain statements in t Rs.is Management Discussion and Analysis Report, describing t Rs.e companys future projections are “ForwardLooking Statements” under applicable laws and regulations. Actual results could differ materially from t Rs.ose projected due to several factors, including but not limited to economic conditions t Rs.at impact demand/supply and price conditions in t Rs.e domestic and international markets, c Rs.anges in government regulations, tax laws and ot Rs.er incidental factors.

		For and on be Rs.alf of t Rs.e Board of Directors
	Sd/-	Sd/-
	R. C RS.ELLAPPAN	A. BALAN
Place: C Rs.ennai	Managing Director	Joint Managing Director
Date: 30 May 2025	DIN: 00016958	DIN: 00017091