Teamtech Formwork Solutions Ltd Management Discussions

You should read the following discussion of our financial condition and results of operations together with our Restated Financial Statements as at and for the years ended March 31, 2026, March 31, 2025 and March 31, 2024 including related notes, schedules and annexures included in this Red Herring Prospectus. You should also read the section entitled "Risk Factors" on page 28 which discusses several factors, risks and contingencies that could affect our financial condition and results of operations. The following discussion relates to our Company and is based on our Restated Financial Statements, which have been which have been derived from our audited financial statements and restated in accordance with the relevant provisions of the SEBI ICDR Regulations, Section 26 of Part I of Chapter III of the Companies Act 2013, as amended and the Guidance Note on Reports in Company Prospectuses (Revised

2019) issued by the ICAI (the "Guidance Note"), as amended from time to time. Portions of the following discussion are also based on internally prepared statistical information and on other sources. Our fiscal year ends on March 31 of each year, so all references to a particular fiscal year ("Fiscal Year") are to the Twelve-month period ended March 31 of that year.

The Restated Financial Statements have been prepared in accordance with Indian GAAP, the Companies Act, the SEBI (ICDR) Regulations 2018 and Guidance Note, and restated as described in the examination report of our auditors dated 30.04.2026 which is included in this Red Herring Prospectus under the section titled "Financial Information" on page no. 216 of this Red Herring Prospectus. The Restated Financial Statements have been prepared on a basis that differ in certain material respects from generally accepted accounting principles in other jurisdictions, including US GAAP and IFRS. We do not provide a reconciliation of our Restated Financial Statements to US GAAP or IFRS and we have not otherwise quantified or identified the impact of the differences between Indian GAAP and U.S. GAAP or IFRS as applied to our Restated Financial Statements.

This discussion contains forward looking statements and reflects our current views with respect to future events and financial performance. Actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors such as those described under "Risk Factors" and "Forward Looking Statements" on page no. 28 & 21 respectively, and elsewhere in this Red Herring Prospectus. Accordingly, the degree to which the Restated Financial Statements in this Red Herring

Prospectus will provide meaningful information depend entirely on such potential investors level of familiarity with Indian accounting practices.

OVERVIEW

Teamtech Formwork Solutions Limited (Formerly Teamtech Formwork Solutions Private Limited) operates on a business-to-business (B2B) model and is engaged in the manufacturing, refurbishing and renting of modular T formwork systems used in construction industry. The Company operates an integrated business model covering the entire lifecycle of formwork systems, including design support, manufacturing of new panels, refurbishment and reconditioning of used panels, and rental of formwork solutions. The modular T formwork systems are primarily designed for vertical concrete structures, such as foundations, walls, shafts, tanks, bridges and circular structures, enabling efficient and accurate execution of construction activities. In addition to manufacturing activities, the Company provides customised formwork solutions and technical support to its customers. Through its refurbishment and rental model, the Company enables customers to extend the useful life of formwork systems and access formwork solutions without incurring significant capital expenditure, thereby supporting cost-effective and sustainable construction practices.

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

For details in respect of Summary of Significant Accounting Policies, please refer to "Restated Financial Statements" on page no 216 of this Red Herring Prospectus.

FACTORS AFFECTING OUR RESULTS OF OPERATIONS

Our business is subjected to various risks and uncertainties, including those discussed in the section titled "Risk Factors" on page no. 28 of Red Herring Prospectus. Our results of operations and financial conditions are affected by numerous factors including the following:

Disruptions in our manufacturing operations and fluctuations in raw material prices.

Our success in executing business strategies, pursuing growth and expansion plans, and adapting to technological advancements.

Challenges in attracting, retaining, and smoothly transitioning members of our management team and skilled workforce.

Our competitiveness in the market.

Difficulties in meeting working capital needs or retaining current credit facilities.

Inability to consistently meet customer quality standards or adapt to changing customer preferences.

Intense competition within our industry.

Impact of regulatory developments in the industries where we operate and our capacity to adapt accordingly.

Successful execution of our strategic initiatives.

Influence of domestic and global economic and political conditions on our operations.

Our effectiveness in hiring and retaining skilled personnel.

Unfavourable outcomes from legal proceedings involving Promoters, Directors, or key managerial personnel.

Volatility in equity markets, interest rates, or other market indicators, both in India and internationally.

Natural disasters or other calamities affecting our areas of operation.

Potential conflicts of interest involving group companies, our Promoters, or related parties.

Overall performance of Indian and global financial markets.

Challenges in broadening our geographic footprint.

High promoter shareholding concentration and its implications

Discussion on Standalone Result of Operations

Profit and Loss Statement

The following discussion on results of operations should be read in conjunction with the Restated Financial Statements for the years ended on March 31, 2026, March 31, 2025, and March 31, 2024.

	% of Total		% of Total		% of Total
Particulars	FY 2026	Income	FY 2025	Income	FY 2024	Income
Revenue from operations	5366.11	98.95%	3,270.87	99.19%	3,030.12	99.98%
Other Income	56.98	1.05%	26.73	0.81%	0.63	0.02%
Total Income	5423.09	100.00%	3,297.60	100.00%	3,030.75	100.00%
Expenses
Cost of material consumed	2381.65	43.92%	1,590.07	48.22%	1,765.28	58.25%
Changes in inventories of finished goods	124.36	2.29%	(94.35)	(2.86%)	(153.91)	(5.08%)
Employee benefits expenses	632.39	11.66%	567.31	17.20%	346.62	11.44%
Finance costs expenses	106.88	1.97%	63.38	1.92%	61.19	2.02%
Depreciation and amortisation expense	108.47	2.00%	86.99	2.64%	51.04	1.68%
Other expense	477.89	8.81%	283.58	8.60%	160.89	5.31%
Total Expenses	3831.64	70.65%	2,496.98	75.72%	2,231.11	73.62%
Profit Before Tax	1591.45	29.35%	800.62	24.28%	799.64	26.38%
Tax Expense:
(a) Current tax expense	429.43	7.92%	7.57	0.23%	24.59	0.81%
(b) Deferred tax	3.03	0.06%	9.28	0.28%	5.58	0.18%
Total tax	432.46	7.98%	16.85	0.51%	30.17	0.99%
Profit for the period	1158.99	21.37%	783.77	23.77%	769.47	25.39%

Our Significant Accounting Policies

For Significant accounting policies please refer Significant Accounting Policies, under Chapter titled "Restated Financial

Statement" on page no 216 of the Red Herring Prospectus.

Overview of Revenue & Expenditure

The following discussion on results of operations should be read in conjunction with the Restated Financial Statements for the

Financial Year 2025-26, Financial Year 2024-25 and Financial Year 2023-24. Our revenue and expenses are reported in the following manner:

Revenue from operations:

The Companys revenue is primarily generated from the manufacture and sale of modular T formwork systems, refurbishment and reconditioning of formwork panels, rental of formwork systems, and sale of related accessories.

Other Income:

Other income includes interest on fixed deposits and recovery of bad debts written off during the year.

Expenses:

Our total expenditure primarily consists of Cost of Sales, Employee benefit expense, Finance Costs, Depreciation and amortization expense, and Other Expenses.

Cost of Sales

The Cost of Sales of the Company primarily comprises manufacturing expenses, consumption of materials, packing charges, and transportation charges incurred in relation to the production, handling, and delivery of formwork systems and related solutions. It also includes changes in inventory of finished goods during the reporting period/ year.

Employee benefits expense:

The employee benefit expenses mainly include salaries and wages, statutory contributions, directors remuneration, and staff welfare expenses.

Finance Costs:

The finance cost of the Company comprises interest expenses and bank-related charges incurred on various banking and financing facilities availed during the reporting period. These include interest on term loans, working capital facilities including overdraft, equipment loans availed and vehicle (car) loans, along with bank processing and other related charges.

Depreciation and Amortisation Expenses:

Depreciation and amortisation expenses of the Company primarily include depreciation on fixed assets such as plant and machinery, furniture and fittings, vehicles, office equipment, and computers.

Other Expenses:

Other expenses mainly include manufacturing expenses, freight outward, and travelling expenses, along with other administrative and operational expenses, etc.

FINANCIAL YEAR 2025-26 COMPARED TO FINANCIAL YEAR 2024-25 (BASED ON RESTATED FINANCIAL

STATEMENTS)

Total Income:

The total income of the company has increased from Rs 3,297.60 lakhs in FY 2025 to Rs 5,423.09 lakhs in FY 2026, showing a growth of 64.46%. The increase in the total income of the company is due to increase in revenue from operations of the company from Rs 3,270.87 lakhs in FY 2025 to Rs 5,366.11 lakhs in FY 2026.

Revenue from Operations:

Revenue from operations of the company has increased by Rs 2,095.24 lakhs, from Rs 3,270.87 lakhs in FY 2025 to Rs 5,366.11 lakhs in FY 2026, representing a growth of 64.06%.

The increase is due to increase in revenue from operations of the following sales categories:

Particulars	FY 2026	% age	FY 2025	% age
1 Manufactured Goods	4,065.56	75.76%	2,228.68	68.14%
2 Rental	1,218.65	22.71%	936.79	28.64%
3 Refurbishment	39.92	0.74%	68.83	2.10%
4 Others	41.98	0.79%	36.57	1.12%
Total	5,366.11	100.00%	3,270.87	100.00%

The companys sales breakdown for FY 2026 and FY 2025 indicates both growth in absolute terms and a shift in product-wise contribution to total sales.

Manufacturing: Revenue from the Manufacturing activities stood at 4,065.56 lakhs in FY 2026 as compared to 2,228.68 lakhs in FY 2025, remaining the Companys primary source of revenue and reflecting strong growth in overall operations of the Company, however there has been no material change in the segment wise sales mix of the Company.

Rental: Rental income recorded strong growth, increasing from Rs. 936.79 lakhs in FY 2025 to Rs. 1,218.65 lakhs in FY 2026.

The share of rental revenue in total income dropped from 28.64% to 22.71%, indicating higher demand in manufacturing activities with 82.42% increase as compared to increase in demand for rental solutions by 30.09%.

Refurbishment: Revenue from refurbishment activities decreased from Rs 68.83 lakhs in FY 2025 to Rs 39.92 lakhs in FY 2026. The segments contribution to total revenue declined from 2.10% to 0.74%, primarily due to rising demand and focus on manufacturing of formwork and other products during the year.

Others: Revenue under this segment increased from Rs. 36.57 lakhs in FY 2025 to Rs. 41.98 lakhs in FY 2026. In FY 2025, the income primarily pertained to recognition of job work income relating to earlier periods. In contrast, during FY 2026, the increase was mainly attributable to rebate on Exports and recovery of freight outward charges, resulting in a higher contribution from this segment

While the percentage contribution of each product category shifted slightly, both main segments Manufacturing and Rental experienced substantial growth in absolute terms. This indicates overall expansion in demand and sales volumes across the companys product range during FY 2026.

Other Income:

The Companys other income increased from 26.74 lakhs in FY 2025 to 56.98 lakhs in FY 2026. The increase in FY 2026 was primarily due to Interest income and Forex gain.

Total Expenses:

The total expenses of the Company increased from 2,496.98 lakhs in FY 2025 to 3,831.64 lakhs in FY 2026. However, as a percentage of total income, total expenses declined from 75.72% in FY 2025 to 70.65% in FY 2026, mainly due to decrease in employee benefit expenses and cost of material consumed as a percentage of Total Income during the year.

Cost of Sales

The Companys cost of sales has slightly decreased as a proportion of total income, even though it increased in absolute terms from Rs 1,495.72 lakhs in FY 2025 (45.36% of total income) to Rs 2,506.01 lakhs in FY 2026 (46.21% of total income).

The decline in Cost of Sales as a percentage of total income is mainly attributable to higher rental income and revenue from manufactured goods in FY 2026, which led to an increase in total income and overall cost efficiency.

The table below sets forth the components of our cost of sales:

Particulars	FY 2026	FY 2025
Cost of material consumed	2,381.65	1,590.07
Change in inventory of finished goods	124.36	-94.35
Cost of sales	2,506.01	1,495.72

Employee benefits expense:

Employee benefit expenses increased from 567.31 lakhs (17.20% of total income) in FY 2025 to 632.39 lakhs (11.66% of total income) in FY 2026, mainly due to increase in employee count and higher salaries, increased directors remuneration, higher employee bonus and staff welfare expenses. The increase is primarily attributed to the growth in sales and overall operations of the Company, which led to a corresponding rise in the workforce to support growing operations.

Increase in employees from FY 2025 to FY 2026 is as follows:

Particulars	FY 2026	FY 2025
Employee count	100	85

Finance costs:

The finance cost of the Company increased marginally from 1.92% ( 63.38 lakhs) in FY 2025 to 1.97% ( 106.88 lakhs) in FY 2026; as percentage of total income. The finance cost mainly comprises interest on interest on term loans, interest on car loans, interest on overdraft facilities. The increase in finance cost as a proportion of total income reflects increased leverage during the year.

Depreciation and Amortization Expenses:

Depreciation and amortisation expense increased from 86.99 lakhs in FY 2025 to 108.47 lakhs in FY 2026 due to substantial addition in plant and machinery towards the end of the FY 2025 and during the year to cater the business growth.

Other expenses:

The other expenses of the Company increased from 283.58 lakhs in FY 2025, constituting 8.60% of the total income, to 477.89 lakhs in FY 2026, representing 8.81% of the total income.

As reflected in the table below, other expenses remained largely stable with a marginal increase in certain cost heads; however, their share of total income increased due to the Companys sales growth of approximately 51.07% during the year:

Particulars	FY 2026	% of total Income	FY 2025	% of total Income
1 Freight Outward	104.43	1.93%	81.76	2.48%
2 Manufacturing Expenses	163.94	3.02%	75.63	2.29%
3 Travel and boarding expenses	35.88	0.66%	39.95	1.21%
4 Consultancy Charge	7.69	0.14%	14.58	0.44%
5 Office maintenance expenses	30.80	0.57%	14.18	0.43%
6 Waivers/ Discounts	50.71	0.94%	-	-
7 Others	84.44	1.56%	57.48	1.74%
Total	477.89	8.81%	283.58	8.60%

Reason for increase in other expense as per table are mentioned below:

Freight outward Increased to 104.43 lakhs in FY 2026 from 81.76 lakhs in FY 2025, mainly due to higher dispatch volumes and increased logistics and transportation costs on expansion of rental business.

Manufacturing Expenses Increased to 163.94 lakhs from 75.63 lakhs, reflecting higher production and increase in operational of the Company during the year.

Travel and boarding expenses Decreased to 35.88 lakhs from 39.95 lakhs, primarily on account of increased business travel and operational requirements is support to the expansion of business during FY 2025.

Consultancy charges Decreased to 7.69 lakhs from 14.58 lakhs, primarily due to higher consultancy requirements during FY 2025 for public issue readiness.

Office maintenance expenses Increased to 30.80 lakhs from 14.18 lakhs, owing to higher facility management and administrative support costs to cater the increase in production and operations of the Company.

Waivers/ discounts The Company incurred waiver/discount expenses amounting to 50.71 lakhs during the year, representing amount written off from trade receivables.

Other expenses Amounted to 84.44 lakhs in FY 2026 as compared to 57.48 lakhs in FY 2025 and mainly include power and fuel, corporate social responsibility expenditure, insurance, office rent and other miscellaneous administrative expenses.

Restated Profit/ (Loss) before tax:

As a result of the foregoing, the profit before tax of the company has increased from Rs 800.62 lakhs in FY 2025 to Rs 1591.45 lakhs in FY 2026, wherein the profit before tax has increased from 24.28% of the total income in FY 2025 to 29.35% of the income in FY 2026.

Tax Expense

The Companys tax expense has significantly increased from 16.85 lakhs (0.51% of total income) in FY 2025 to 432.48 lakhs

(7.98% of total income) in FY 2026. The lower tax expense up till FY 2025 is primarily due deduction availed by the Company under section 80-IAC of Income Tax 1961, however the period available for claiming deduction by the Company has ended in FY 2025.

Profit for the period:

As a result, the foregoing Profit after tax (PAT) stood at 783.77 lakhs (23.77% of total income) in FY 2025 as compared to 1158.99 lakhs (21.37% of total income) in FY 2026. The decline in PAT margin was mainly due to increase in tax expense.

Particulars	FY 2026	FY 2025
Sales	5,366.11	3,270.87
Cost of Sales	2,506.01	1,495.72
Gross Profit	2,860.10	1,775.15
Gross Profit %	53.30%	54.27%
Other Expense	1325.63	1001.26
Profit before tax	1591.45	800.62
Tax	432.47	16.84
Net Profit	1158.99	783.77
Net Profit %	21.37%	23.77%

During Fiscal 2026, the Company experienced a slight increase in gross margin primarily on account of decrease cost of sales resulting from increased demand for its business products, which also supported growth in total revenue.

However, despite the improvement in gross margin, the profit after tax margin declined slightly in FY 2026 as compared to FY 2025. This was primarily due to deduction availed by the Company under section 80-IAC of Income Tax 1961, however the period available for claiming deduction by the Company has ended in FY 2025.

FINANCIAL YEAR 2024-25 COMPARED TO FINANCIAL YEAR 2023-24 (BASED ON RESTATED FINANCIAL STATEMENTS)

Total Income:

The total income of the company has increased from Rs 3,030.75 lakhs in FY 2024 to Rs 3,297.60 lakhs in FY 2025, showing a growth of 8.80%. The increase in the total income of the company is due to increase in revenue from operations of the company from Rs 3030.12 lakhs in FY 2024 to Rs 3270.87 lakhs in FY 2025.

Revenue from Operations:

Revenue from operations of the company has increased by Rs 240.75 lakhs, from Rs 3,030.12 lakhs in FY 2024 to Rs 3,270.87 lakhs in FY 2025, representing a growth of 7.95%.

The increase is due to increase in revenue from operations of the following sales categories :

Particulars	FY 2025	% age	FY 2024	% age
Manufactured Goods	2228.68	68.14%	2,509.66	82.82%
Rental	936.79	28.64%	491.80	16.23%
Refurbishment	68.83	2.10%	26.14	0.86%
Others	36.57	1.12%	2.52	0.09%
Total	3,270.87	100.00%	3,030.12	100.00%

The companys sales breakdown for FY 2025 and FY 2024 indicates both growth in absolute terms and a shift in product-wise contribution to total sales.

Manufacturing: Revenue from the Manufacturing activities stood at 2,228.68 lakhs in FY 2025 as compared to 2,509.66 lakhs in FY 2024, mainly because a portion of customers opted for rental solutions due to lower capital requirement, correspondingly the Companys increasingly focused on expanding the rental and selective projects offering higher margins and improved overall profitability.

Rental: Rental income recorded strong growth, increasing from Rs. 491.80 lakhs in FY 2024 to Rs. 936.79 lakhs in FY 2025. The share of rental revenue in total income rose from 16.23% to 28.64%, indicating higher demand for rental solutions and a growing focus on stable, recurring revenue streams.

Refurbishment: Revenue from refurbishment activities increased from Rs 26.14 lakhs in FY 2024 to Rs 68.83 lakhs in FY

2025. The segments contribution to total revenue improved from 0.86% to 2.10%, primarily due to panels supplied in earlier years that became due for servicing during the current year.

Others: Revenue under this segment increased from Rs. 2.52 lakhs in FY 2024 to Rs. 36.57 lakhs in FY 2025. In FY 2024, the income primarily pertained to recognition of job work income relating to earlier periods. In contrast, during FY 2025, the increase was mainly attributable to sale of missing items and recovery of freight outward charges, resulting in a higher contribution from this segment

Other Income:

The Companys other income increased from 0.63 lakhs in FY 2024 to 26.74 lakhs in FY 2025. The increase in FY 2025 was primarily due to recovery of bad debts written off during the year.

Total Expenses:

The total expenses of the Company increased from 2,231.11 lakhs in FY 2024 to 2,496.98 lakhs in FY 2025. However, as a percentage of total income, total expenses increased marginally from 73.62% in FY 2024 to 75.72% in FY 2025, mainly due to higher employee benefit expenses, increased other operating expenses, and higher depreciation incurred during the year to support business expansion.

Cost of Sales

The Companys cost of sales has decreased as a proportion of total income, even though it increased in absolute terms from Rs 1,611.37 lakhs in FY 2024 (53.17% of total income) to Rs 1,495.72 lakhs in FY 2025 (45.36% of total income).

The decline in Cost of Sales as a percentage of total income is mainly attributable to higher rental income in FY 2025, which led to an increase in total income, hence the overall cost ratio improved.

The table below sets forth the components of our cost of sales:

Particulars	FY 2025	FY 2024
Cost of material consumed	1,590.07	1,765.28
Change in inventory of finished goods	-94.35	-153.91
Cost of sales	1,495.72	1,611.37

Employee benefits expense:

Employee benefit expenses increased from 346.62 lakhs (11.44% of total income) in FY 2024 to 567.31 lakhs (17.20% of total income) in FY 2025, mainly due to higher salaries, increased directors remuneration, and staff welfare expenses. The increase is primarily attributed to the growth in sales, which led to a corresponding rise in the workforce to support growing operations.

Increase in employees from FY 2024 to FY 2025 is as follows:

Particulars	FY 2025	FY 2024
Employee count	85	64

Finance costs:

The finance cost of the Company increased marginally from 61.18 lakhs in FY 2024 to 63.38 lakhs in FY 2025; however, it declined as a percentage of total income from 2.02% in FY 2024 to 1.92% in FY 2025. The finance cost mainly comprises interest on interest on term loans, interest on car loans, interest on overdraft facilities. The reduction in finance cost as a proportion of total income reflects higher growth in total income during the year.

Depreciation and Amortization Expenses:

Depreciation and amortisation expense increased from 51.04 lakhs in FY 2024 to 86.99 lakhs in FY 2025 due to substantial addition in plant and machinery to cater the business growth in rental segment during the year.

Other expenses:

The other expenses of the Company increased from 160.89 lakhs in FY 2024, constituting 5.31% of the total income, to 283.58 lakhs in FY 2025, representing 8.60% of the total income. The increase in other expenses of the company is due to increase in the following expenses:

Particulars	FY 2025	% of total Income	FY 2024	% of total Income
Freight Outward	81.76	2.48%	30.13	0.99%
Manufacturing Expenses	75.63	2.29%	41.13	1.36%
Travel and boarding expenses	39.95	1.21%	18.45	0.61%
Consultancy Charge	14.58	0.44%	8.45	0.28%
Office maintenance expenses	14.18	0.43%	8.00	0.26%
Others	57.48	1.74%	54.73	1.81%
Total	283.58	8.60%	160.89	5.31%

Reason for increase in other expenses as per table are mentioned below:

Freight outward Increased to 81.76 lakhs in FY 2025 from 30.13 lakhs in FY 2024, mainly due to higher dispatch volumes and increased logistics and transportation costs on expansion of rental business.

Increased to 75.63 lakhs from 41.31 lakhs, reflecting higher production and increase in operational of the Company during the year.

Travel and boarding expenses Rose to 39.95 lakhs from 18.45 lakhs, primarily on account of increased business travel and operational requirements is support to the expansion of business.

Consultancy charges Increased to 14.58 lakhs from 8.45 lakhs, mainly due to higher professional and advisory services for growth and expansion availed during the year.

Office maintenance expenses Increased to 14.18 lakhs from 8.00 lakhs, owing to higher facility management and administrative support costs to cater the increase in production and operations of the Company.

Other expenses Amounted to 57.48 lakhs in FY 2025 as compared to 54.73 lakhs in FY 2024 and mainly include power and fuel, corporate social responsibility expenditure, insurance, office rent and other miscellaneous administrative expenses.

Restated Profit/ (Loss) before tax:

As a result of the foregoing, the profit before tax of the company has increased from Rs 799.64 lakhs in FY 2024 to Rs 800.62 lakhs in FY 2025, however the profit before tax has decreased from 26.38% of the total income in FY 2024 to 24.28% of the income in FY 2025.

Tax Expense

The Companys tax expense decreased from 30.17 lakhs (0.99% of total income) in FY 2024 to 16.85 lakhs (0.51% of total income) in FY 2025. The reduction in tax expense was primarily due to higher depreciation allowed under Income Tax Act, 1961.

Profit for the period:

As a result of the foregoing, Profit after tax (PAT) stood 769.47 lakhs (25.39% of total income) in FY 2024 as compared to 783.77 lakhs (23.77% of total income) in FY 2025. The decline in PAT margin was mainly due to increase in employee benefit expenses on account of manpower additions and salary revisions.

Particulars	FY 2025	FY 2024
Sales	3,270.87	3,030.12
Cost of Sales	1,495.72	1,611.37
Gross Profit	1,775.15	1,418.75
Gross Profit %	54.27%	46.82%
Other Expense	1001.26	619.74
Profit before tax	800.62	799.64
Tax	16.85	30.17
Net Profit	783.77	769.47
Net Profit %	23.77%	25.39%

During FY 2025, the Companys gross margin improved due to growth in rental total income, which led to an increase in total income, hence the ratio of Cost of Sales as a percentage of total revenue improved.

However, despite the improvement in gross margin, the profit after tax margin declined slightly in FY 2025 as compared to FY 2024. This was primarily due to an increase in employee benefit expenses, Tax and other operating expenses, depreciation incurred to support business expansion through addition in plant and machinery and higher scale of operations during the year.

Balance Sheet

The following discussion on balance sheet should be read in conjunction with the Standalone Restated Financial Statements for the financial years ended on March 31, 2026, March 31, 2025, March 31, 2024 and March 31, 2023.

Particulars	FY 2026	FY 2025	FY 2024
Liabilities
Long Term Borrowing	768.02	84.83	71.97
Short Term Borrowings	899.54	1,024.81	291.59
Trade Payables	1,006.26	414.13	389.38
Contingent Liability	-	-	-
Assets
Inventory	433.32	752.90	525.94
Trade Receivable	2,977.21	736.58	766.28
Short Term Loans and Advances	284.17	52.55	67.65
Non-Current Investment	-	-	-

Overview of Assets and Liabilities

The following discussion on assets and liabilities should be read in conjunction with the Restated Financial Statements as at and for the years FY 2026, FY 2025 and FY 2024. Our assets and liabilities are reported in the following manner:

Long Term Borrowing

Long-term borrowings of the Company comprise term loans and machinery loans availed from banks and financial institutions, including ICICI Bank, HDFC Bank, Mahindra & Mahindra Finance, and Tata Capital Finance, as well as vehicle loans. These borrowings are secured by hypothecation of movable fixed assets, machinery, or vehicles and, in certain cases, by mortgage of immovable properties and personal guarantees of the directors.

Short Term Borrowing

Short-term borrowings of the Company primarily include working capital facilities in the form of overdraft limits availed from banks and current maturities of long-term borrowings repayable within one year.

Trade Payables

Trade payables represent the amounts that Company owes to its vendors for purchase of goods and services on credit.

Contingent Liability

Company has contingent liability in FY 2026 on account of performance bank guarantee given.

Inventory

Inventory pertains to raw material, stores and spares and finished goods held by the Company as on the each balance sheet date.

Trade Receivable

Trade receivables pertains to the amounts due from customers to the Company for sale of services on credit.

Non-Current Investment

The Company does not have any non-current investments.

Short Term Loans and Advances

Short-term loans and advances of the Company comprise advances to suppliers, security deposits, and employee advances.

FINANCIAL YEAR 2026 COMPARED TO FINANCIAL YEAR 2025 (BASED ON RESTATED FINANCIAL STATEMENTS)

Long term Borrowing

As at 31^st March, 2026, the Companys long-term borrowings stood at 768.02 lakhs after adjusting for current maturities of long-term borrowings of 187.92 lakhs as compared to 84.83 lakhs after adjusting for current maturities of long-term borrowings of 77.46 lakhs as at 31^st March 2025. The borrowings mainly comprise a secured business loan from bank of 955.94 lakhs and 162.29 as at

31^st March 2026 and 31 March 2025, respectively, with no unsecured long-term borrowings outstanding.

Short Term Borrowing

For the period ended 31^st March, 2026, the Companys short-term borrowings stood at 899.54 lakhs, comprising secured loans repayable on demand from banks of 711.62 lakhs and current maturities of long-term debt of 187.92 lakhs as compared to 1,024.81 lakhs, comprising secured loan repayable on demand from bank of 947.35. This reflects higher reliance on short-term bank funding to meet working capital and near-term repayment obligations during FY 2026.

Trade Payable

As at 31 March 2026, the Companys trade payables stood at 1,006.26 lakhs, comprising MSME payables of 11.05 lakhs and non-MSME payables of 995.21 lakhs as compared to MSME payable of 214.83 lakhs and non-MSME payables of 199.30 lakhs.

Further, the trade payable days increased to 119 days in FY 2026 from 85 days in FY 2025, due to purchases made towards the end of the year. Please find below Trade payable days of the company over the years:

Particulars	FY 2026	FY 2025
Trade Payables	119	85

Inventories

As at 31^st March, 2026, the Companys total inventories stood at 433.32 lakhs, comprising raw materials of 249.12 lakhs, stores and spares of 44.49 lakhs and finished goods of 139.71 lakhs as compared to raw materials of 470.25 lakhs, stores and spares of

18.58 lakhs and finished goods of 264.07 lakhs. There was no work-in-progress or goods in transit as at the reporting date. Further, inventory holding period decreased to 40 days in FY 2026 from 71 days in FY 2025, due to purchases of raw material towards the end of FY 2025 indicating higher inventory to adequately fulfil the orders in hand. Please find below inventory days of the company over the years:

Particulars	FY 2026	FY 2025
Inventory	40	71

As at 31^st March, 2026, the Companys trade receivables stood at 2,977.21 lakhs, as compared to 736.58 lakhs as at 31^st March 2025. The majority of the receivables in both years are unsecured and considered good, while doubtful receivables are fully provided for, reflecting a prudent credit risk management approach. Further, the trade receivable days increased to 126 days in FY 2026 from 84 days in FY 2025, due to invoicing towards the end of the year, pending for collection for export sales. Please find below trade receivable days of the company over the years: .

Particulars	FY 2026	FY 2025
Trade receivables	126	84

Short-term loans and advances

As at 31^st March, 2026, short-term loans and advances (unsecured and considered good) stood at 284.17 lakhs, comprising advances to suppliers of 243.94 lakhs, security deposits of 36.63 lakhs and employee advances of 3.60 lakhs as compared to 52.55 lakhs, comprising advances to suppliers of 19.74 lakhs, security deposits of 30.06 lakhs and employee advances of 2.75 lakhs as at 31^st March 2025. Increase is majorly on account of outstanding advance to vendor against which material is yet to be received.

FINANCIAL YEAR 2025 COMPARED TO FINANCIAL YEAR 2024 (BASED ON RESTATED FINANCIAL STATEMENTS)

Long term Borrowing

As at 31 March 2025, long-term borrowings increased to 84.83 lakhs from 71.97 lakhs mainly due to a new secured business loan of 98.23 lakhs taken during the year. Further, vehicle and machinery loans and unsecured borrowings have reduced, and higher current maturities reflect timely repayment and disciplined debt management by the Company.

Short Term Borrowing

As at 31 March 2025, the Companys short-term borrowings increased significantly to 1,024.81 lakhs as compared to 291.59 lakhs as at 31 March 2024, mainly due to higher utilisation of secured working capital facilities from banks by 719.81 lakhs leading to outstanding balance of 947.35 lakhs as on 31 March 2025 as compared to 227.54 lakhs as on 31 March 2024. The increase reflects higher working capital requirements to support business operations, while the current maturities of long-term debt increased moderately to 77.46 lakhs on account of new business loan taken during the year ended 31 March 2025.

Trade Payable

As at 31 March 2025, total trade payables stood at 414.13 lakhs as compared to 389.98 lakhs as at 31 March 2024, comprising 214.83 lakhs payable to micro and small enterprises and 199.30 lakhs payable to other creditors. The increase in trade payables is on account of increase in operations of the Company during the year. Further, the trade payable days increased to 85 days in FY 2025 from 49 days in FY 2024, due to purchases made towards the end of the year.

Please find below Trade payable days of the company over the years:

Particulars	FY 2025	FY 2024
Trade Payable	85	49

Inventories

As at 31 March 2025, the Companys total inventory stood at 752.90 lakhs as compared to 525.94 lakhs as at 31 March 2024, mainly driven by an increase in raw materials and finished goods to cater the increase in business operations. There were no work-in-progress or goods in transit in either of the year. Further, inventory holding period increased to 71 days in FY 2025 from 46 days in FY 2024, indicating higher inventory to adequately fulfil the orders in hand.

Please find below inventory days of the company over the years:

Particulars	FY 2025	FY 2024
Inventory	71	46

Trade receivables

As at 31 March 2025, trade receivables stood at 736.58 lakhs as compared to 766.28 lakhs as at 31 March 2024. The majority of the receivables in both years are unsecured and considered good, while doubtful receivables are fully provided for, reflecting a prudent credit risk management approach. Further, the trade receivable days increased to 84 days in FY 2025 from 58 days in FY 2024, due to invoicing towards the end of the year, pending for collection..

Please find below trade receivable days of the company over the years:

Particulars	FY 2025	FY 2024
Trade Receivable	84	58

Short-term loans and advances

As at 31 March 2025, short-term loans and advances (unsecured and considered good) stood at 52.55 lakhs as compared to 67.65 lakhs as at 31 March 2024. The decrease is mainly due to lower advances to suppliers, partly offset by an increase in security deposits for premise taken on lease. Employee advances remained broadly stable during the year.

Information required as per Item (II) (C) (iv) of Part A of Schedule VI to the SEBI Regulations:

An analysis of reasons for the changes in significant items of income and expenditure is given hereunder:

1. Unusual or infrequent events or transactions - Except as described in this Red Herring Prospectus and to the best of the knowledge of our management, there have been no other events or transactions which may be described as "unusual" or "infrequent".

2. Significant economic changes that materially affected or are likely to affect income from continuing operations. Except as disclosed in this Red Herring Prospectus There are no significant economic changes that may materially affect or likely to affect income from continuing operations.

3. Known trends or uncertainties that have had or are expected to have a material adverse impact on sales, revenue or income from continuing operations - Other than as described in this Red Herring Prospectus and to the best of the knowledge of our management, there are no known factors that might have had or are expected to have a material adverse impact on sales, revenue or income from continuing operations.

4. Future changes in relationship between costs and revenues Except the costs and revenues impact determined by competition, demand/ supply situation, interest rates quoted by banks & others and to the best of the knowledge of our management, there are no known factors that might affect the future relationship between costs and revenues.

5. Increases in net sales or revenue and Introduction of new products or services or increased sales prices - Increases in revenues are by and large linked to increases in volume of our business.

6. Total turnover of each major industry segment in which the issuing company operated - The Company is in the business of manufacturing and rental of construction equipments. Relevant industry data, as available, has been included in the chapter titled

"Industry Overview" beginning on page 110 of this Red Herring Prospectus.

7. Status of any publicly announced new products or business segments - Our Company has not announced any new services and segment/ scheme, other than disclosure in this Red Herring Prospectus.

8. Seasonality of business Except that our Company generally records lower revenue in Quarter 2 of the Financial Year as compared to other quarters, as construction activities tend to slow during this period, and to the best of the knowledge of our management, there are no known factors that are likely to materially affect the future relationship between costs and revenues.

9. Dependence on single or few customers As disclosed in Chapter titled "Risk Factors" on Page 28, our business is dependent on few customers.

10. Competitive conditions - We operate in a competitive environment. See "Business Overview" and "Industry Overview" on pages 120 and 110 respectively, for further information on competitive conditions that we face.

11. Details of material developments after the date of last balance sheet i.e. March 31, 2026 - After the date of last Balance sheet i.e. March 31, 2026, no material events/ developments have occurred.

Approval of Restated financial statement for the financial year ended March 31, 2026, March 31, 2025, March 31, 2024 and dated 08.05.2026.

Approval of Audited financial statement for the financial year ended March 31, 2026 dated 08.05.2026.