Tacent Projects Ltd Management Discussions

We submit herewith the "Management Discussion and Analysis Report" on the business of the Company as applicable to the extent relevant.

GLOBAL ECONOMY OVERVIEW

Global growth is projected at 3.3 percent for 2026 and 3.2 percent for 2027, revised slightly up since the October 2025. Technology investment, fiscal and monetary support, accommodative financial conditions, and private sector adaptability offset trade policy shifts. Global inflation is expected to fall, but US inflation will return to target more gradually. Key downside risks are reevaluation of technology expectations and escalation of geopolitical tensions. Policymakers should restore fiscal buffers, preserve price and financial stability, reduce uncertainty, and implement structural reforms.

The crisis in the Middle East has delivered yet another shock to the global economy, slowing growth, reigniting inflationary pressures and heightening uncertainty.

Global GDP growth is now forecast at 2.5 per cent in 2026, 0.2 percentage points below the January projection and well below pre-pandemic norms. A modest recovery is projected at 2.8 per cent in 2027. Solid labour markets, resilient consumer demand, and AI-driven trade and investment in select economies are expected to provide some support, but the downgrade underscores a further weakening of an already subdued global outlook.

The shock is primarily felt in the energy sector-through constrained supply, surging prices, and rising freight and insurance costs-with effects cascading through supply chains and increasing production costs globally. While the surge in prices delivers substantial windfall gains for energy companies, it has intensified cost pressures for households and businesses worldwide. The overall impact will depend on the duration of disruptions in energy markets, leaving the outlook highly uncertain and risks tilted to the downside.

The conflict has halted the global disinflation trend underway since 2023. In developed economies, inflation is forecast to rise from 2.6 percent in 2025 to 2.9 percent in 2026, edging further above central bank targets in most cases. In developing economies, the uptick is sharper: inflation is projected to accelerate from 4.2 per cent to 5.2 per cent, as higher energy, transport and import costs erode real incomes and broaden price pressures across a wide range of goods

INDIAN ECONOMIC OVERVIEW

Indias economy in FY 2025-26 is projected to grow by roughly 7.4%, cementing its status as the worlds fourth-largest economy with a GDP of about USD $4.18 trillion. This robust momentum is fueled by strong domestic consumption, continuous infrastructure investments, and significant improvements in banking stability.

Real GDP growth is estimated at 7.4%, while Nominal GDP is projected to reach Rs. 357.14 lakh crore (approx. USD 3.91 trillion). Domestic inflation has averaged at a relatively low 1.7%, significantly reducing rural and urban stress. Forex reserves hit a record USD 701.4 billion, providing 11 months of import cover. The urban unemployment rate dropped to 4.9%, the lowest in recent years, largely driven by active job creation.

INDUSTRY OVERVIEW

METAL

GLOBAL METAL MARKET

The metal market size has grown steadily in recent years. It will grow from $4.23 trillion in 2025 to $4.37 trillion in 2026 at a compound annual growth rate (CAGR) of 3.4%.

The global metal market in 2025-26 is characterized by moderate demand growth, supply-side constraints in certain metals, ongoing energy-transition investments, and geopolitical/trade uncertainties. Overall, base metals are expected to remain relatively firm despite slower global economic growth.

Global steel demand is expected to stabilize and show modest growth during 2026 after several challenging years. A major concern is global excess steelmaking capacity, which reached record levels and continues to increase, creating pricing pressure and trade disputes.

Copper remains one of the strongest long-term metals due to demand from:

• Renewable energy projects

• Electric vehicles (EVs)

• Power grids

• Data centres and AI infrastructure

Aluminium demand is benefiting from EV lightweighting, Solar installations, Packaging, Aerospace applications.

Nickel Market continues to face oversupply, particularly due to strong production from Indonesia. Global inventories remain high, limiting significant price appreciation in the near term.

Lithium and Battery Metals

• Lithium prices rebounded sharply in early 2026 after a prolonged downturn.

• Demand from EV batteries remains strong, but the market is still vulnerable to supply increases and policy changes.

INDIAS METAL MARKET

The Indian metal market is experiencing a massive, infrastructure-driven boom. Notably, crude steel production has hit an all-time high of nearly 169 million metric tons. The sector is supported by robust demand and consistent capacity expansion from major players like SAIL, Tata Steel, and JSW Steel.

Steel & Iron Ore

• Production & Demand: Crude steel output crossed 168 million tonnes, growing by 10.7% year-over-year. Finished steel consumption reached over 163 million tonnes, driven heavily by public infrastructure and urban construction projects.

• Global Trade: India secured its position as a net exporter of finished steel, shipping 6.6 million metric tons.

• Outlook: Driven by local demand and the "Housing for All" initiative, the domestic steel market is valued at roughly 150 billion, reflecting one of the highest growth projections globally.

Copper & Base Metals

• Consumption Surge: Domestic copper consumption has exceeded 750,000 tonnes against a domestic production of 555,000 tonnes.

• Key Drivers: The base metals space is benefiting greatly from a domestic bull run. Copper demand is projected to double by 2030, heavily fuelled by the rapid expansion of renewable energy (solar/wind), electric vehicles (EVs), and industrial corridors.

• Market Dynamics: Industrial metal futures (like copper and aluminium) have shown volatility, balancing strong domestic buying with global inflationary pressures

Precious & Minor Metals

• Mineral Values: The cumulative estimated value of metallic minerals production has increased to well over Rs. 78,300 crore for the mid-year metrics.

• Growth Areas: Base production metrics for metals like gold, bauxite, and zinc conc. have also registered steady positive growth rates

KEY INITIATIVES UNDERTAKEN BY THE GOVERNMENT OF INDIA IN FY 2025-26

Production Linked Incentive (PLI) Scheme for Specialty Steel

• PLI 1.2 Launch: The third round of the PLI Scheme for Specialty Steel covers 22 product sub-categories (e.g., super alloys, CRGO, titanium alloys).

• Investment Boost: The scheme offers incentive rates between 4% to 15%, with 85 Memorandums of Understanding (MoUs) signed with 55 companies, bringing committed investments of over Rs. 11,887 Crore.

Trade Measures & Protection

• Safeguard Duties: To protect domestic manufacturers against import surges, the Directorate General of Trade Remedies (DGTR) recommended and the government imposed a provisional safeguard duty of 12% on select non-alloy and alloy steel flat products.

• Quality Control Orders (QCOs): The government mandated 143 QCOs covering 723 products, effectively banning sub-standard steel in both domestic markets and imports.

Scrap Duty Elimination & Recycling

• Customs Duty Revamp: The government eliminated basic customs duties on waste and scrap of non-ferrous metals (such as copper, brass, lead, and zinc) and 12 critical minerals (including cobalt powder and lithium-ion battery scrap).

• Cost Competitiveness: This directly lowers raw material costs for secondary metal producers and boosts Indias recycling industry.

Critical Minerals & Upstream Security

• National Critical Mineral Mission (NCMM): A Rs.16,300 crore mission was implemented to enhance domestic production, processing, and recycling of vital metals required for the clean energy, space, and defence sectors.

• Tailings Policy: A new policy for the recovery of critical minerals from mining waste/tailings was introduced to enhance domestic ore availability.

Decarbonization & Green Steel

• Hydrogen Pilot Projects: Under the National Green Hydrogen Mission, the Ministry of Steel awarded pilot projects to substitute natural gas and reduce coal/coke consumption in Direct Reduced Iron (DRI) units and blast furnaces.

• Decarbonization Task Forces: The Ministry constituted 14 task forces to recommend specific measures to lower carbon emissions across the steel industrys value chain.

Monitoring & Digitization

• SARAL-SIMS System: A simplified registration process under the Steel Import Monitoring System (SIMS) was introduced to strengthen oversight and protect domestic capacities.

OPPORTUNITIES, CHALLENGES AND OUTLOOK

Opportunities

• Robust Domestic Demand:

- Infrastructure Push: Continued massive government spending on infrastructure projects (roads, railways, ports, airports, urban development) under initiatives like PM Gati Shakti is the primary driver of steel and other metal demand.

- Housing and Construction: A strong focus on affordable housing schemes (e.g., Pradhan Mantri Awas Yojana) and general urbanization drives demand for metal-intensive construction.

- Manufacturing Growth: Resurgent demand from sectors like engineering, automotive (despite some fluctuations), packaging, and capital goods contributes significantly.

- Renewable Energy: Ambitious targets for renewable energy capacity expansion (e.g., 500 GW by 2030) create demand for metals in solar panels, wind turbines, and transmission infrastructure.

• Government Support & Policy Initiatives:

- Production Linked Incentive (PLI) Scheme for Specialty Steel: This scheme, with its expanded "PLI 1.1" launched in early 2025 and "PLI 1.2 launched in 2025-26 (reflecting developments in 2026), is designed to boost domestic high-value steel production, reduce imports, and attract significant investments.

- Duty Adjustments: Reduction in customs duty on key raw materials like Ferro Nickel and extension of duty exemption on ferrous scrap aim to reduce input costs for manufacturers.

- Quality Control Orders (QCOs): Strict enforcement of QCOs ensures that only quality steel is used, protecting domestic producers from sub-standard imports.

• Green Transition & Decarbonization:

- Emerging Market for Green Steel: Indias commitment to net-zero emissions by 2070 creates opportunities for investments in green steel technologies (hydrogen-based steelmaking, CCUS, electric arc furnaces).

- R&D Funding: Government support for R&D in green technologies and resource efficiency encourages innovation and sustainable practices.

• Raw Material Security:

- Critical Mineral Auctions: The ongoing exploration and auction of critical mineral blocks aim to secure domestic supply of essential non-ferrous metals and reduce import dependence.

- Scrap Recycling Policy: Promotion of steel scrap recycling helps reduce reliance on primary raw materials and contributes to a circular economy.

Challenges

• Rising Imports and Global Price Pressure:

- Surge in Cheap Imports: India experienced a significant surge in finished steel imports in 2025, particularly from China, Japan, and Vietnam, often at discounted prices, impacting domestic prices and market share. This has led to India being a net importer of steel from FY 2024-25 onwards.

- Weak Global Steel Prices: Global steel prices remained soft in 2025 due to sluggish demand in major economies (e.g., Chinas real estate sector downturn, Europe, US, Japan demand contraction), putting downward pressure on domestic prices despite strong demand.

• Volatile Raw Material Costs:

- Coking Coal and Iron Ore Fluctuations: While coking coal prices showed some moderation in 2025, iron ore prices increased, leading to fluctuating input costs for steelmakers and impacting profit margins.

- Nickel and Ferro-alloys: The stainless steel sector specifically faces challenges from volatile prices of key inputs like nickel and ferroalloys.

• Decarbonization Challenges:

- High Investment Costs: Transitioning to green steel production requires substantial capital investment in new technologies, which can be a significant financial burden for manufacturers.

- Technological Gaps: The adoption of advanced, cleaner technologies is still relatively slow, and dependence on traditional blast furnaces remains high.

- Availability of Green Hydrogen: Scaling up green hydrogen production for industrial use is a long-term endeavour with infrastructure and cost challenges.

• Logistics Inefficiencies:

- High Logistics Costs: Indias logistics costs (estimated at 12-14% of GDP) remain higher than global benchmarks, impacting the competitiveness of metal products.

- Inadequate Multimodal Infrastructure: Despite progress, gaps in last-mile rail and port connectivity can hinder efficient transportation of raw materials and finished goods.

• Unutilized Capacity:

- Stainless Steel: The Indian stainless steel industry, despite increasing consumption, has around 40% of its capacity unutilized, indicating a mismatch or overcapacity in certain segments.

Outlook

The metal industry in FY 2025-26 faces a tale of two markets. While developed economies and China struggle with overcapacity and sluggish demand, India continues to be the global bright spot, driven by booming infrastructure investments, urbanization, and a strong manufacturing push.

Regional Demand & Market Dynamics

• India (The Global Engine): Indias steel demand continues to grow robustly at 6.5% to 7.5%. Domestic crude steel capacity stands at roughly 220 MTPA as the industry pushes toward the 300 MTPA target by 2030.

• Global Headwinds: Global demand growth remains generally fragile, projected to rise by only about 0.3% to 1.3% globally. Chinas continued property sector downturn and soaring global overcapacity exert constant downward pressure on international prices.

• Base Metals: Non-ferrous metals (like copper and aluminium) are seeing better price realizations globally due to their necessity in the energy transition and EV sectors.

Profitability & Pricing

• Margin Pressures: Despite healthy domestic demand in India, producers are facing shrinking margins. Elevated input costs (like international coking coal and volatile industrial fuels) paired with fluctuating domestic steel prices are squeezing profit margins.

• Price Recovery: After a prolonged period of softness, flat steel prices have shown signs of recovery (e.g., HR Coil prices ticking up) from multi-year lows, providing mild relief.

Strategic Shifts & Policies

• Green Steel Initiatives: There is an aggressive push toward sustainability. In India, the Ministry of Steel has issued green steel certificates to dozens of producers. Companies are increasingly pivoting to Electric Arc Furnaces (EAF) and induction furnaces using ferrous scrap to lower their carbon footprints.

• Protectionism & Trade Regulations: To combat surges of cheap imports and protect domestic producers, major markets-including the US and the EU-have implemented higher safeguard duties and tariffs, shaping a highly regionalized trade environment.

• Specialty Steel PLI: Government Production Linked Incentive (PLI) schemes are driving domestic manufacturing of high-value specialty steel, promoting self-reliance and import substitution.

DISSCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The financial statements have been prepared in accordance with the requirements of the Companies Act, 2013 and applicable accounting standards issued by the Institute of Chartered Accountants of India. The details of the financial performance of the Company are appearing in the Balance Sheet, Profit & Loss Accounts and other financial statements forming part of this annual report.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

The Company deals in Single Segment. During the year, the revenue from operations stood at Rs. 10,25,000/- as compared to Rs. 3,35,43,648.00/- of last financial year on standalone basis.

INTERNAL FINANCIAL CONTROL SYSTEM

Given the magnitude and nature of its business, the Company has maintained sound and commercial practice with an effective internal control system. The system ensures that all transactions are authorized, recorded and reported correctly to safeguard the assets of the Company and protect them from any loss due to unauthorized use or disposition. The adequate internal information system is in place to ensure proper information flow for the decision- making process. The Company also has well-established processes and clearly defined roles and responsibilities for people at various levels. The control mechanism also involves well documented policies, authorization guidelines commensurate with the level of responsibility and standard operating procedures specific to the respective businesses, adherence to which is strictly ensured. Internal audit is carried out frequently to create awareness and to take corrective actions on the respective units or areas, which need rectification. These reports are then reviewed by the "Management Team" and the "Audit Committee" for follow-up action.

HUMAN RESOURCE DEVELOPMENT

The Company regards its human resources as amongst its most valuable assets and proactively reviews policies and processes by creating a work environment that encourages initiative, provides challenges and opportunities and recognizes the performance and potential of its employees attracting and retaining the best manpower available by providing high degree of motivation.

Your Company believes in trust, transparency & teamwork to improve employees productivity at all levels.

DISCLOSURE OF ACCOUNTING TREATMENT

While preparation of financial statements, a relevant Accounting Standard treatment has been followed.

CAUTIONARY STATEMENT

The Management Discussion and Analysis Report containing your Companys objectives, projections, estimates and expectation may constitute certain statements, which are forward looking within the meaning of applicable laws and regulations. The statements in this management discussion and analysis report could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operation include raw material availability and prices, cyclical demand and pricing in the Companys principal markets, changes in the governmental regulations, tax regimes, forex markets, economic developments within India and the countries with which the Company conducts business and other incidental factors.

DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR

The Financial Year 2025-26 had been fortunate enough for the Company. The return on Net Worth stood at (-)4.80% for the current financial year as compared to 14.5% for the previous financial year.

	On behalf of the Board of Directors
	For Tacent Projects Limited
	Somali Trivedi
Date: 11.08.2026	Chairperson & Independent Director
Place: New Delhi	DIN:10761851