Techera Engineering India Ltd Management Discussions

Financial year ended March 31, 2026

Economic Overview

The global economy through CY 2025 and into CY 2026 has operated in an environment shaped by geopolitical realignment, shifting trade policy and continued volatility in energy and commodity markets. While inflation moderated across most major economies compared with prior years, cross-border tensions and supply-side disruptions continued to influence investment decisions, sourcing strategies and monetary policy positioning.

For manufacturers, the most consequential outcome of this period has been the accelerated restructuring of global supply chains. Original Equipment Manufacturers and their tier-one partners are actively pursuing regional manufacturing footprints, ‘China Plus One’ and ‘friend-shoring’ strategies, and deeper development of lower-tier supplier ecosystems. Countries that combine engineering capability, cost competitiveness, quality systems and political stability are gaining disproportionate strategic importance in this reordering.

India has been among the principal beneficiaries. The country retained its position as the fastest-growing major economy during FY 2025-26, supported by resilient domestic consumption, sustained public capital expenditure and a policy architecture explicitly directed at manufacturing. Production Linked Incentive schemes, the Make in India and Atmanirbhar Bharat programmes, and sustained investment in industrial infrastructure and logistics have collectively improved India’s standing as a long-term manufacturing and supply-chain destination.

For a precision engineering company operating at the intersection of aerospace, defence and advanced manufacturing, this is an unusually constructive backdrop · one in which structural demand, national policy and customer sourcing strategy are aligned in the same direction.

Sources: IMF World Economic Outlook; Ministry of Statistics and Programme Implementation; Reserve Bank of India; Union Budget FY2026-27; Invest India.

Global Aerospace and Defence Industry

The global aerospace and defence industry is in a sustained structural expansion cycle, driven simultaneously by the recovery and growth of commercial aviation and by elevated defence spending across major economies.

Commercial aviation: demand expansion amid supply constraints

Global passenger traffic has moved decisively past pre-pandemic levels and is projected to exceed 10 billion passengers in CY 2026. Aircraft production, however, continues to be constrained by material shortages, labour availability and engine supply disruptions. OEM order backlogs now extend well into the next decade, delaying deliveries and compelling airlines to maximise the utilisation and operating life of their existing fleets.

This combination · strong demand meeting constrained supply · has two direct consequences for precision engineering suppliers. First, production scale-up efforts require highly engineered assembly systems, precision tooling, structural jigs and component fixtures. Second, and more significantly, extended fleet utilisation is driving a structural expansion of the maintenance ecosystem.

The aftermarket: aerospace’s most resilient growth engine

Global commercial MRO demand reached approximately USD 136 billion in CY 2025 and is forecast to approach USD 193 billion by CY 2036, expanding at a compound annual growth rate of around 3.3%. Over the same horizon, the global commercial fleet is projected to grow from approximately 30,046 aircraft in CY 2026 to approximately 41,135 aircraft by CY 2036.

As airlines extend aircraft operating life, maintenance intensity is rising across airframes, structural systems, landing gear and engines. This is creating sustained demand for exactly the categories in which TechEra operates · specialised maintenance tooling, heavy maintenance and docking systems, ground support equipment, structural support and access systems, and aftermarket engineering solutions. Critically, the aftermarket is far less cyclical than new-build production: maintenance is driven by flight hours and cycles already flown, not by future delivery schedules.

Defence: modernisation and sustainment

Elevated geopolitical risk continues to support defence budgets globally, with capital allocation increasingly directed towards next-generation combat aircraft, autonomous and unmanned platforms, and multi-domain systems. The active global military fleet is expected to expand materially over the coming decade, creating parallel opportunities across military MRO, ground support equipment, specialised tooling and precision components.

Alongside this, supply chain resilience has become a strategic priority. Raw material constraints, production bottlenecks and concentration risk have prompted OEMs to invest in supplier development, multi-country manufacturing footprints and lower-tier ecosystem strengthening·increasing the strategic value of trusted manufacturing partners capable of delivering precision, quality and scale.

Sources: Oliver Wyman Global Fleet and MRO Market Forecast 2026-2036; Airports Council International - Global Passenger Traffic Forecast; Boeing Commercial Market Outlook; Deloitte Aerospace and Defence Industry Outlook.

The Indian Aerospace and Defence Ecosystem

India’s aerospace and defence manufacturing sector is expanding at a pace and with a policy consistency that has few parallels globally. For a domestically anchored precision engineering company, the operating backdrop has rarely been more favourable.

Record indigenous production and exports

• Production. Domestic defence production reached an all-time high of approximately Rs.1.78 lakh crore in FY 2025-26, an increase of about 15.6% over the preceding year and approximately 87% higher than five years ago.

• Private sector participation. The private sector’s contribution rose to close to a quarter of total output, at approximately Rs.42,000 crore · a record in absolute terms, and clear evidence that indigenisation is being delivered through, and not merely alongside, private industry.

• Exports. Defence exports rose approximately 63% to about Rs.38,424 crore in FY 2025-26, with the exporting base widening to 145 entities supplying more than 80 countries.

A larger and more domestically directed budget

The Union Budget 2026-27 allocated an all-time high of approximately Rs.7.85 lakh crore to the Ministry of Defence, approximately 15% above the previous year’s budget estimates. Of this, approximately Rs.2.19 lakh crore has been allocated to capital expenditure and approximately Rs.1.85 lakh crore to capital acquisition. Most significantly for domestic suppliers, approximately Rs.1.39 lakh crore · 75% of the capital acquisition budget · has been earmarked for procurement from Indian industry.

Structured indigenisation

Successive positive indigenisation lists, the Services’ own indigenisation drives, depot-level vendor development programmes and offset-linked technology transfer are progressively moving tooling, ground support equipment, maintenance consumables and sub-assembly manufacturing from imports to qualified Indian vendors. Importantly for suppliers, these transfers are typically structured as multi-year frameworks: once a vendor is qualified for a specific item, supply rights commonly run for five years, converting a difficult qualification process into durable, visible revenue.

Civil aviation and the domestic MRO opportunity

India is among the fastest-growing aviation markets in the world, with over 1,000 commercial aircraft on order across domestic carriers and a trajectory towards becoming one of the world’s three largest aviation markets. Historically, close to 90% of India’s maintenance requirement has been serviced overseas. That is now changing decisively: taxation and infrastructure reform have improved the economics of maintaining aircraft in India, and the country’s leading carriers are establishing their own domestic MRO facilities.

The Indian MRO market, estimated at approximately USD 1.7 billion in CY 2021, is projected to reach approximately USD 4.0 billion by CY 2031, growing at a compound annual growth rate of about 8.9% · meaningfully faster than the global average. Independent forecasts also place India as the fastest-growing MRO market globally over the coming decade, at approximately 7.1% CAGR between CY 2026 and CY 2036.

Every new MRO facility commissioned in India requires docking systems, access platforms and scaffolding, engine and component handling equipment, specialised maintenance tooling and ground support equipment before it can turn a single wheel. This is the opportunity around which TechEra has positioned itself.

Sources: Press Information Bureau - Defence Production and Defence in Union Budget 2026-27; Ministry of Defence; Deloitte - MRO in India; Oliver Wyman Global Fleet and MRO Market Forecast 2026-2036; Ministry of Civil Aviation.

Industry Overview - The Company’s Addressable Segments Aerospace tooling and assembly systems

Aerospace tooling is the foundational enabler of aircraft manufacture. Every airframe structure, composite panel, sub-assembly and final assembly line depends on precision jigs, fixtures, layup tools, assembly stations and test rigs engineered to tolerances an order of magnitude tighter than the parts they produce. Demand is created not by production volume alone but by programme events · a new platform, a production rate increase, a line relocation, an indigenisation transfer · each of which requires a complete new tooling set.

India’s expanding portfolio of indigenous aircraft and helicopter programmes, together with the transfer of global structural work packages into Indian facilities, is generating a sustained pipeline of tooling requirements. Capability in this segment is scarce: it demands design authority, large-envelope machining, metrology and an aerospace quality system, and qualification cycles are long. Those same barriers protect incumbents once qualified.

MRO tooling and ground support equipment

This is the segment the Company expects to lead its growth over the medium term. Maintenance tooling and ground support equipment span an unusually broad catalogue · aircraft docking and maintenance access systems, wing and engine removal and handling equipment, weapon and ammunition loading trolleys, towing and servicing equipment, component-specific repair tooling and test rigs.

Two demand pools are converging. On the civil side, the localisation of Indian MRO capacity described above is creating first-fit demand for entire facilities. On the defence side, indigenisation of ground support equipment across the fighter, trainer, transport and rotary fleets is transferring what was historically imported equipment to qualified Indian vendors under multi-year frameworks. The global ground support equipment market alone is estimated at over USD 10 billion in CY 2026 and is expected to expand substantially over the coming years, supported by airport expansion, fleet growth, infrastructure modernisation and the transition towards electric and telematics-enabled GSE platforms.

Precision components and sub-assemblies

The migration of flight-critical component and sub-assembly manufacture into India is the natural next stage of the indigenisation cycle, and represents a structurally higher-value opportunity than tooling alone. Programme-linked sub-assembly work carries longer contract durations, recurring build schedules and deeper customer integration. Entry is governed by first-article inspection and qualification rather than price, which makes early qualification investment the principal determinant of future share.

Industrial automation

The Company’s automation business applies the same engineering discipline · design, precision fabrication, controls and integration · to turnkey assembly lines and automation systems for quality- critical industrial manufacturing. Beyond its own contribution, this business provides useful diversification of the revenue base and a proving ground for capability that transfers directly into aerospace assembly systems.

Key industry trends

• Aftermarket over new-build. Extended fleet utilisation and delivery delays are shifting value towards maintenance, sustainment and lifecycle support · a more resilient and more predictable demand pool.

• Indigenisation with structure. Multi-year, item-specific supply frameworks are replacing one-off imports, rewarding suppliers who invest in qualification ahead of the order.

• Localisation of MRO in India. Domestic MRO capacity creation is producing first-fit demand for tooling, docking, access and ground support systems at facility scale.

• Supplier ecosystem development. OEMs and national platform builders are actively developing lower-tier Indian suppliers, moving them from component supply towards sub-assembly and system- level responsibility.

• Advanced manufacturing and Industry 4.0. Multi-axis machining, digital metrology, additive processes, manufacturing execution systems and predictive maintenance are becoming baseline expectations rather than differentiators.

• Talent as the binding constraint. Qualified aerospace engineers, programmers and precision machinists remain the sector’s scarcest input, making in-house skilling a strategic capability rather than an overhead.

Industry outlook

Taken together, expanding maintenance requirements, a widening indigenisation mandate, the localisation of MRO infrastructure and sustained defence capital allocation are expected to support a long procurement cycle across aerospace tooling, MRO tooling, ground support equipment and precision components. The principal constraints on participation are capability, certification and capacity · not demand. The Company’s investment during the year under review was directed precisely at those constraints.

Company Overview

TechEra Engineering (India) Limited (‘TechEra’) is a specialised precision engineering company serving India’s aerospace and defence ecosystem. Established in 2018 and listed on the National Stock Exchange of India, the Company designs and manufactures high-precision tooling, maintenance and ground support systems, and flight-critical components in support of the national objectives of Make in India and Atmanirbhar Bharat.

The Company delivers end-to-end engineering solutions · from design and engineering through manufacture, assembly, inspection, installation and commissioning · across four capability pillars:

• Aerospace and defence tooling: assembly and production tooling, composite layup tools, structural jigs and fixtures, complete assembly line systems and test rigs.

• MRO tooling and ground support equipment: aircraft maintenance docking, access and scaffolding systems, wing and engine handling equipment, weapon loading trolleys and platform-specific maintenance tooling.

• Precision components and sub-assemblies: flight-critical machined components, high-precision shafts and programme sub-assemblies.

• Industrial automation: turnkey assembly lines and automation systems for technology-intensive, quality-critical manufacturing.

Operations are conducted in compliance with globally recognised quality systems, and the Company is certified to AS9100D:2018 and ISO 9001:2015.

Programme credentials

TechEra’s engineering credentials are established on some of the most demanding programmes undertaken in India:

• LCA Tejas. The Company is the only Indian manufacturer of the large composite wing-skin layup tooling used on the programme · capability that had been imported since the early 1980s · and has supplied multiple units of major equipment supporting a multi-aircraft production lot.

• C-17 Globemaster III. Supplied central fuselage assembly tooling of approximately 28 metres in length, among the largest aerospace assembly tooling built in India.

• Boeing 737. Designed and built a complete vertical fin manufacturing assembly line for a leading Indian aerostructures manufacturer.

• Rafale. A leading supplier of specialised ground support equipment for the platform, including ammunition loading and wing handling systems.

• Sukhoi fleet sustainment. Engaged in MRO support activity across the Indian Air Force’s Su-30 fleet.

• Commercial aviation. Sole design holder in India for certain aircraft maintenance scaffolding systems serving both narrow-body and wide-body operations, supplied to India’s largest airlines.

• Precision manufacturing. Capability to manufacture 2.5 metre precision vacuum pump shafts · among a very small group of manufacturers worldwide with this capability.

Manufacturing platform

• Principal manufacturing facility at Velu, Taluka Bhor, District Pune, expanded during FY 2025-26 with additional built-up area, new machining and inspection capacity and enhanced design and engineering infrastructure.

• A subsidiary manufacturing presence at Nashik, positioned to support outsourced sub-assembly and component programmes for national platform builders where component movement and proximity are decisive.

• Deployed engineering teams operating inside a major national aerospace manufacturer’s facility under in-plant insourcing programmes.

• An in-house design and engineering group with capability across large-envelope tooling design, fixture engineering, automation controls and aerospace documentation.

The infrastructure now in place is capable of supporting revenue of the order of Rs.120 - 125 crore without material further capital investment, providing significant headroom for growth and operating leverage as utilisation improves.

Aerospace tooling and assembly systems

Tooling remained the Company’s largest revenue contributor during FY 2025-26. The defining development of the year was the award and execution of a mandate to design and manufacture a complete set of aerospace tooling for a private aircraft Original Equipment Manufacturer, undertaken in association with national aeronautical research institutions. The design phase was completed in full during the year and the programme moved into manufacture, with delivery scheduled during FY 2026-27.

On completion, TechEra will be the only company in India to have built a complete aerospace tooling set for a single aircraft platform · a capability reference of considerable competitive value as the OEM scales production and as other platform programmes reach the same stage.

MRO tooling and ground support equipment

This offering was the principal focus of the Company’s capability investment during the year, in anticipation of the demand shift described earlier. Work progressed across maintenance tooling, handling systems and ground support equipment for both defence platforms and commercial operators.

The most consequential development was the completion, shortly after the close of the financial year, of the Company’s registration as an approved vendor of the Indian Air Force under 1 Central Industrial Maintenance Depot, Air Force Station Ojhar, Nasik · a process that took approximately six to seven months of qualification work carried out during FY 2025-26. The registration is valid for five years and authorises the Company to quote to, and supply, any unit of the Indian Air Force, including its depots and associated research establishments. It covers aerospace tooling design and manufacture, precision machining, industrial automation, assembly and MRO tooling for defence platforms, and ground support equipment and scaffolding solutions.

Management expects MRO-related work to become the Company’s largest revenue stream during FY 2026-27, ahead of tooling, as domestic maintenance capacity is commissioned and as ground support equipment opportunities now open to the Company are converted.

Precision components and sub-assemblies

The Company continued to build position in programme-linked sub-assembly work during the year, principally through in-plant insourcing programmes executed at a major national aerospace manufacturer’s facility. Two such programmes were in execution during the year, with tenders submitted for two further insourcing scopes.

In parallel, the Company qualified for and bid on outsourced manufacturing work · including subassemblies for a trainer aircraft programme and a structural section of a vertical fin · which would be executed from the Company’s own facilities. The two tracks are independent of one another in terms of manpower and resources and can be executed concurrently. Together they represent the Company’s intended progression from tooling supplier to assembly and sub-system partner.

Industrial automation

The automation business continued to contribute steadily during the year, providing revenue diversification and a route for the Company’s controls and integration capability to be developed and then applied to aerospace assembly systems.

Operational Highlights, FY 2025-26

FY 2025-26 was, by deliberate design, a year of capacity and capability creation. The Company invested ahead of demand, accepting the near-term cost of doing so in order to qualify for a materially larger class of work.

• Manufacturing infrastructure expanded, with additional built-up capacity commissioned during the year and the balance of ordered equipment arriving in the early part of FY 2026-27.

• New machining and inspection capacity added, extending the Company’s envelope, tolerance capability and throughput.

• Design and engineering software capability strengthened, supporting larger and more complex tooling and assembly programmes.

• Significant investment in technical manpower and skilling, including teams deployed on in-plant aerospace assembly programmes · experience being carried back into the Company’s own facilities.

• Indian Air Force vendor qualification completed, following six to seven months of work during the year, granting five-year approved-vendor standing.

• Complete aircraft tooling set designed in full and moved into manufacture, in association with national aeronautical research institutions.

• Customer base materially widened, with new customers added principally within aerospace and defence, and an active base of approximately 10 to 15 programme customers carrying substantial order books of their own.

• Order book more than doubled over the year, closing at approximately Rs.46 - 47 crore against less than half that level at the start of the financial year.

A disrupted international programme

During the year the Company held a five-year supply contract with an international aerospace customer, valued at approximately Rs.110 crore, on which more than eight months of development work had already been completed. Following the geopolitical developments of May 2025 and the consequent restrictions on commercial engagement between the two countries, communication from the customer ceased and the programme did not commence.

This was the principal reason that revenue for FY 2025-26 remained broadly flat against the previous year rather than growing as anticipated. The Company’s exposure was limited to jigs and fixtures rather than material or work-in-progress on the parts themselves, and that tooling is being redeployed to other programmes.

The management response was immediate and, in the Board’s view, the more important outcome of the episode. Within weeks the Company began rebuilding its pipeline with alternative customers, securing and executing replacement work within a compressed timeframe in the second half of the year. More durably, it has moved decisively away from dependence on any single large programme. The customer diversification undertaken in response is a permanent change in how the business is constructed, not a temporary repair.

Strategic Initiatives and Developments

The capability built during FY 2025-26 began converting into approvals and orders from the closing weeks of the year and through the early months of FY 2026-27:

• Indian Air Force vendor registration (June 2026). Registration under 1 CIMD, Air Force Station Ojhar, Nasik, valid for five years, opening the entire Indian Air Force, its depots and associated research establishments to the Company. Multiple requests for quotation have already been received.

• Entry into the Rafale support chain (August 2026). A development-cum-supply order from the Indian Air Force for the design, development and supply of a multifunction probe deburring tool referenced to the Rafale programme. While modest in value, successful qualification opens the path to recurring bulk supply and to similar orders from other Air Force depots.

• Multi-year defence order (July 2026). Purchase orders aggregating approximately Rs.4.09 crore for 54 Universal Weapon Loading Trolleys for the LCA Tejas programme, with deliveries scheduled in batches extending to 2032 · an order profile that establishes a base of assured, long-dated revenue and reflects customer confidence in the Company’s quality systems.

• Aircraft MRO equipment order (August 2026). A commercial order of approximately Rs.1.43 crore for the supply, installation, commissioning and training of aircraft MRO equipment, scheduled for execution within 16 weeks.

• Aircraft sub-assembly tooling order (August 2026). A commercial order of approximately Rs.0.60 crore for aircraft sub-assembly tooling, scheduled for execution within three months.

• Deepening national platform partnership. Two in-plant insourcing programmes in execution, tenders submitted for two further scopes, and qualification achieved for outsourced sub-assembly and structural component work executable from the Company’s own facilities.

• Ground support equipment indigenisation. Engagement in the indigenisation of ground support equipment across multiple Indian Air Force platforms · a large, long-cycle opportunity in which qualified vendors typically secure item-specific supply rights for five years.

Outlook

The Company enters FY 2026-27 with more capacity, more approvals and more forward visibility than at any point in its history. Management is confident about the year ahead and about the medium term.

• A deep quotation pipeline. Quotations and requests for quotation aggregating approximately Rs.170 - 180 crore are in active discussion with customers, from which management anticipates meaningful order additions during the year.

• Approvals converting into orders. The Indian Air Force registration, the Rafale-referenced development order and the multi-year Tejas ground support equipment orders each represent the beginning rather than the conclusion of a supply relationship.

• MRO moving to the front. Management expects MRO tooling and equipment to become the largest contributor to revenue during FY 2026-27, followed by tooling and ground support equipment, as India’s domestic maintenance infrastructure is commissioned.

• Operating leverage. With infrastructure capable of supporting revenue of the order of Rs.120 - 125 crore already in place, the Company’s priority is utilisation, conversion and cash generation rather than further capital investment. Management does not anticipate a material capital expenditure requirement in the near term.

• Balance sheet discipline. Management is focused on improving working capital efficiency, accelerating collections and retiring higher-cost borrowings, with the objective of reducing finance costs progressively through the year.

On the strength of the order book, the pipeline and the approvals now held, management expects FY 202627 to be a year of restored growth, with revenue growth in the range of 30% to 40% over FY 2025-26 and net profitability in double digits, subject to the timing of customer schedules and to the risks and uncertainties described elsewhere in this report.

Strategic priorities

• Converting Indian Air Force and depot-level approvals into item-specific, multi-year supply mandates.

• Scaling the MRO tooling and ground support equipment franchise as domestic MRO capacity is commissioned.

• Progressing from tooling supplier to sub-assembly and system partner with national platform builders.

• Improving capacity utilisation and operating leverage across the assets created in FY 2025-26.

• Broadening the customer base further, including selective international engagement, so that no single programme can determine a financial year.

• Strengthening working capital efficiency and reducing the cost of capital.

With a diversified opportunity pipeline, substantial manufacturing headroom, a widening set of qualifications and a customer base rebuilt on deliberately broader foundations, the Board believes TechEra is well positioned to capitalise on one of the most sustained demand cycles Indian aerospace manufacturing has seen.

Risk Management

TechEra operates in a business environment exposed to geopolitical, macroeconomic, operational, regulatory and technological risk. The Company follows a structured approach to identifying, assessing and mitigating risk in alignment with its business objectives, with oversight exercised by the Board and its Committees. The principal risks and the Company’s responses are set out below.

Risk	Mitigation
Customer and programme concentration	Deliberate diversification of the customer base across platforms, programmes and end markets; a materially wider set of active customers than a year ago; explicit strategy that no single programme should determine a financial year
Geopolitical and crossborder disruption	Increased weighting towards domestic defence and civil aviation demand; qualification with Indian defence establishments providing long-dated domestic revenue; selective and diversified international engagement
Delay in order conversion	A broad quotation pipeline across multiple customers and segments; early engagement in customer development and qualification cycles so that approvals precede rather than follow demand
Working capital and liquidity	Focus on collection discipline, inventory conversion, retirement of higher-cost borrowings, and closer alignment of procurement with execution schedules
Certification and regulatory compliance	AS9100D:2018 and ISO 9001:2015 systems, customer-specific quality approvals, and continuous investment in documentation, traceability and process discipline
Technology obsolescence	Continuous investment in machining, metrology, design software and automation capability; participation in programmes alongside national research institutions
Talent attraction and retention	Structured in-house skilling, exposure to marquee national programmes, in-plant deployment experience, and career progression within a growing organisation
Input cost and supply chain	Vendor diversification, forward planning of long-lead items, and contractual protection where commercially feasible
Cybersecurity and data protection	Controlled access to design and customer data, secure document exchange, and progressive strengthening of IT security infrastructure

Internal Control Systems and their Adequacy

The Company maintains an internal control framework commensurate with the size, nature and complexity of its operations. The Board of Directors, through the Audit Committee, oversees the design, implementation and effectiveness of internal controls across the organisation.

Key elements of the framework include:

• Structured financial planning, budgeting and reporting processes supported by defined approval mechanisms and segregation of responsibilities.

• Documented standard operating procedures across order acceptance, engineering release, procurement, production planning, quality assurance, dispatch, billing and collections.

• Programme-level costing and monitoring, enabling execution performance to be tracked against estimate at the level of the individual tooling or equipment programme.

• Quality controls aligned to AS9100D:2018 and ISO 9001:2015, including inspection planning, first- article verification, traceability and right-first-time discipline.

• Enterprise systems supporting operational visibility, process standardisation and control over inventory and procurement.

• Independent internal audit conducted in accordance with an annual plan approved by the Audit Committee, with findings, management responses and the status of corrective actions reviewed by the Committee.

The statutory auditors have reported on the adequacy and operating effectiveness of the Company’s internal financial controls with reference to the financial statements. During the year, the Company continued to strengthen its systems in line with the growing scale and complexity of its programme portfolio. Management believes that the internal control systems remain adequate and effective for the nature and scale of the Company’s operations.

Information Technology and Digital Transformation

Technology is a strategic enabler of the Company’s manufacturing precision, programme discipline and scalability. Investment during FY 2025-26 was directed at strengthening the digital backbone required to execute larger and more complex aerospace programmes.

• Design and engineering. Enhanced CAD/CAM capability supporting large-envelope tooling design, fixture engineering and reduced programming turnaround for customer qualification work.

• Production visibility. Progressive digitalisation of production planning, work-in-progress tracking and machine utilisation monitoring.

• Quality and metrology. Integration of inspection and coordinate measuring outputs into quality reporting, supporting automated documentation and process control to aerospace standards.

• Enterprise systems. Continued strengthening of ERP-based controls across procurement, inventory, costing and dispatch.

• Secure customer collaboration. Controlled systems for exchange of drawings, technical documentation and quality records with aerospace and defence customers.

Going forward, the Company intends to continue investing in manufacturing execution capability, analytics and cybersecurity infrastructure in support of its growth.

Human Resources

In precision aerospace manufacturing, capability resides in people before it resides in machines. TechEra’s competitive position rests on engineering judgement, process discipline and the accumulated programme experience of its teams, and FY 2025-26 saw one of the most significant investments in human capital in the Company’s history.

Technical manpower was added and skilled deliberately ahead of the scope of work now opening up. Teams were deployed on in-plant assembly programmes at a leading national aerospace manufacturer, giving engineers direct exposure to aircraft-level assembly practice · know-how now being carried back into the Company’s own facilities. Training during the year covered aerospace quality systems, metrology, composite tooling, design software and programme documentation.

This investment has a specific commercial logic. Because capability, once built, scales faster than headcount, management expects the Company to be able to execute a substantially larger scope of work with only modest incremental additions to its technical team · with the cost incurred in FY 2025-26 recovered over the following years.

Industrial relations remained cordial throughout the year and no material issues arose on the industrial relations front. The Company maintains a policy on the Prevention of Sexual Harassment in line with the requirements of the Sexual Harassment of Women at the Workplace (Prevention, Prohibition and Redressal) Act, 2013, and an Internal Complaints Committee has been constituted. The Company maintains a health, safety and environment framework across its facilities, with regular safety audits, equipment inspections and preventive safety measures, and remains committed to a safe, inclusive and merit-based workplace.

Cautionary Statement

Statements in this Management Discussion and Analysis describing the Company’s objectives, projections, estimates and expectations are ‘forward-looking statements’ within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied, depending upon economic and political conditions in India and overseas, changes in government policy and defence procurement priorities, the timing of customer orders and schedules, availability of skilled manpower and inputs, cost and availability of finance, litigation, and changes in tax and other laws. The Company undertakes no obligation to publicly amend, modify or revise any forward-looking statement on the basis of any subsequent development, information or event.

For and on behalf of the Board of Directors

TechEra Engineering (India) Limited

Nimesh Rameshchandra Desai

Managing Director, Founder & Promoter

Place: Pune

Date: 01-09-2026