TAAL Tech Ltd Management Discussions

Industry Structure and Developments:

TAAL Tech is an ER&D company providing high value engineering support to customers in North America, Europe and the APAC region. Our core areas of expertise are Plant Engineering, Architecture and Construction, Aerospace and certain niche allied industries. Within each of these industry verticals we provide a wide range of engineering services including manufacturing engineering and digital support. Our goal is to be a market leader in our industry segments and grow our capabilities and our business around key strategic customers. Today more than seventy percent of our business comes from customers who have been with us more than ten years and with whom we continue to build a strong relationship. During the year, with the aim of bringing clarity and focus to our business objectives, TAAL Enterprises Limited merged with its wholly owned subsidiary, TAAL Tech India Private Limited. The merged entity then changed its name to TAAL Tech Limited in order to retain the brand identity and recognition that the company had built in the marketplace. The merger was effected smoothly without any interruption to business.

As we look forward the Engineering Research and Development (ER&D) sector offers ample growth opportunities driven by the need to bring products to market faster and in a more cost-effective manner. Fortunately, TAAL Tech is well positioned to take advantage of this trend. Having said that, the macro-outlook for growth in the ER&D space remains positive, global geopolitical and economic risks persist. A potential slowdown in the North American or European economies could exert a dampening effect on the companys overall growth trajectory. Also, we are yet to be able to assess the full impact of AI on the engineering services sector. We will assess this as we go along. For now, we are keeping our selves abreast of industry trends and taking steps to adopt the technology to improve efficiencies.

The outlook for the company remains very positive. In the past years we have deepened our engagements with existing customers, we have added new capabilities and we have won multiple strategic accounts. We believe that these efforts will continue to yield and deliver very positive results in the coming years.

Apart from regular business TAAL Tech has a strong commitment to protecting our environment and to sustainability. This is reflected in our recent Ecovadis certification. Similarly, we are strongly committed to being socially responsible. We have a robust CSR Policy in place that reflects this commitment and is aimed at creating a positive and lasting impact on society and the communities that we serve.

Our internal control systems are designed to ensure that financial records are conservative and reliable. The Company has a proper and adequate system of internal controls to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposition and that transactions are authorized, recorded and reported correctly.

The Consolidated financial performance of the Company for Financial Year 2025-26 as Compared to the corresponding previous year is given below:

As on March 31, 2026, the Company had 3 subsidiaries viz. TAAL Technologies INC, USA, TAAL Tech GmbH and TAAL Tech UK Ltd., engaged in providing ER&D Services customized to the specific needs of every individual customer. The Financial Performance for the Financial Year 2025-26 can be checked from the financials uploaded on the website of the Company at www.taaltech.com.

Human Resource Management is critical to the successful functioning of our Company. Therefore, it is our endeavor to nurture a high-performance culture with a clear focus on efficiency, innovation, and talent growth.

In accordance with the Listing Regulations, as amended, the Company is required to provide details of significant changes (Change of 25% or more as compared to the immediately previous financial year) in key sector specific financial ratios. The Company has identified the following ratios as key financial ratios:

Statements in the Management Discussion and Analysis describing the Companys expectations or predictions are ‘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 demand-supply conditions, changes in Government regulations, tax regime, economic developments within the country and other factors such as litigation.