Teja Engineering Industries Ltd Management Discussions

The Management Discussion and Analysis report has been separately furnished in the Annual Report and forms a part of the Annual Report. Same is annexed as Annexure-3.

(Page 25)

CORPORATE SOCIAL RESPONSIBILITY:

In compliance with requirements of Section 135 of the Act, the Company has laid down a CSR Policy. The composition of the Committee, contents of CSR Policy and report on CSR activities carried out during the financial year ended 31st March, 2026 in the format prescribed under the Companies (Corporate Social Responsibility Policy) Rules, 2014 is annexed herewith as Annexure 4, CFO certificate as Annexure-5.

The CSR Policy of the Company is available at the weblink: https://tejaengineering.com/ShareHolder.aspx .

The Company is committed to focus on inclusive growth and improve lives by contributing towards communities around which it operates. Your Company endeavored to meet the budgeted expenditure by contributing in various eligible CSR activities and has committed to incur expenditure for CSR initiatives in the coming years through structured events or programs and projects. It is committed to actively engage with the partners/NGOs to execute the said events or projects and programs or contribute towards various govt. funds and incur expenditure in accordance with Section 135 of the Companies Act, 2013 and the Companies (Corporate Social Responsibility Policy) Rules, 2014. Details of the same as given in more details in Annexure 4.

Against CSR spending obligation of Rs. 6.78 Lakhs, the Company has spent Rs. 6.79 lakhs towards CSR expenditure in FY 2025-26.

AUDITORS

Statutory Auditor

M/s. K. K. Haryani & Co., Chartered Accountants (Firm Registration No. 121950W), were re-appointed as the Statutory Auditors of the Company at the Annual General Meeting held on 13th September, 2024, to hold office till conclusion of Sixth Annual General Meeting. The Statutory Auditors have confirmed that they are not disqualified to continue as Statutory Auditors and are eligible to hold office as Statutory Auditors of your Company. The company had received eligibility certificate from the auditor.

(Page 26)

STATUTORY AUDITORS REPORT

The Statutory Auditors Report on the Financial Statements of the Company for the Financial Year 2025-26 does not contain any qualification, reservation, adverse remark or disclaimer on the financial statements.

SECRETARIAL AUDIT REPORT

During the FY 2025-26, the Company does not fall under the criteria mentioned under Section 204 of the Act, no details have been furnished in the regard.

REPORTING OF FRAUD BY AUDITORS

During the period under review, statutory auditor has not reported under section 143 (12) of the Companies Act, 2013, any instances of fraud committed against the company by its officers or employees.

LOANS, GUARANTEES AND INVESTMENTS

The Company has not provided no guarantees and made no investments during the period u/s 186 of the Companies Act, 2013. However, the Company has given loans and advances to under section 186 of the Act. Kindly refer the financial statements for the loans, guarantees and investments given/made by the Company as on March 31, 2026. Further details are as follows:

Particulars	Details
a	Whether any loan, guarantee is given by the company or securities of any other body corporate purchased?	Yes
b	Whether the Company falls in the category provided under section 186(11)? (If Yes, in aforesaid clause "a")	No
c	Are there any reportable transactions on which section 186 applies? (whether or not threshold exceeds 60% of its paid-up share capital, free reserves and securities premium account or 100% of its free reserves and securities premium account)	Yes
d	Brief details as to why transaction is not reportable	NA

Details of Transaction:

Number of transactions	01

Particulars	Details
CIN/PAN/Passport/Registration number	U71200GJ2024PTC150817
Name of the Party	SURYA INSTRUMENTS & CALIBRATION PRIVATE LIMITED
Type of person (Individual/Entity)	Entity
Nature of transaction	Loan given
In case of loan, rate of interest would be enquired	9% p.a.
Brief on the transaction	Inter corporate Deposit granted during the year.
Amount (in INR)	80,50,000
Date of passing Board Resolution (DD/MM/YYYY)	26/07/2025
Whether the threshold of 60% of paid-up share capital, free reserves and securities premium account or 100% of its free reserves or securities premium account breached?	Yes
SRN of MGT-14	AA5861561

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE OUTGO:

A. Conservation of Energy, Technology Absorption

CONSERVATION OF ENERGY:

(i)	The steps taken or impact on conservation of energy.	The Company exercised the strict control in its operations to minimize the power cost and reduce the waste of energy.
(ii)	The steps taken by the company for utilizing alternate sources of energy.	N. A.
(iii)	The capital investment on energy conservation equipments.	N. A.

TECHNOLOGY ABSORPTION:

1	Efforts in brief, made towards technology absorption, adaptation and innovation	None
2	Benefits derived as a result of the above efforts	N. A.
3	Information Regarding Imported Technology	N. A.

4	Expenditure Incurred on R & D	N.A.

B. Foreign exchange earnings and Outgo

Particulars	Amount in Lakhs
Earnings	NIL
Outgo	NIL

DEVELOPMENT AND IMPLEMENTATION OF RISK MANAGEMENT POLICY

The Company has developed and implemented a risk management policy which identifies major risks which may threaten the existence of the Company. Risk mitigation process and measures have been also formulated and clearly spelled out in the said policy.

DIRECTORS & KMP

During the period, the composition of the Board of Directors of your Company has been in conformity with the requirements of the Companies Act, 2013. The Board of Directors of the Company as on 31st March, 2026 consisted of 5 Directors. During the year, there was no change in constitution of Board of directors of the Company. There was no changes in KMP during the year.

In accordance with the provisions of the Act and the Articles of Association of the Company, Mrs. Suryakumari Vakalapudi, Whole-time Director of the company, retire by rotation at the ensuing Annual General Meeting. The Board of Directors of the Company, based on the recommendation of the Nomination and Remuneration Committee, have recommended her re-appointment.

The resolution for the above reappointment of Director is incorporated in the Notice of the ensuing Annual General Meeting. In the opinion of the Board, all the Directors possess the requisite qualifications, experience, and expertise and hold high standards of integrity.

Composition of Board

The composition of the Board of Directors as on March 31, 2026 is as under:

Sr. No	DIN/PAN	Name	Designation	Date of Appointment
1	10116216	SRINIVASARAO VAKALAPUDI	Chairman and Managing Director	17/04/2023
2	10116215	SURYAKUMARI VAKALAPUDI	Whole-time Director	17/04/2023
3	10322344	VIDIYALA NAVYA VASANTHA LAKSHMI	Non-executive Director	17/04/2023
4	10382211	MEHUL NARENDRAKUMAR HINGU	Independent Director	17/04/2023
5	10382249	JOSNA RAJESHKUMAR PAMULA	Independent Director	17/04/2023

DISCLOSURE OF COMPOSITION OF AUDIT COMMITTEE:

The provisions of Section 177(1) relating to constitution of Audit Committee has become applicable to the Company. Audit Committee of the Board has been constituted. The Company has constituted Audit Committee on 23rd January, 2025. The Audit Committee consists of the following Directors as on 31st March, 2026:

Name	Designation	Status in Committee
Mehul Narendrakumar Hingu	Independent Director	Chairman
Josna Rajeshkumar Pamula	Independent Director	Member
Vidiyala Navya Vasantha Lakshmi	Non-executive Director	Member

The Company Secretary of the Company act as a Secretary of the Committee.

DISCLOSURE OF COMPOSITION OF NOMINATION AND REMUNERATION COMMITTEE:

The provisions of Section 178(1) relating to constitution of Nomination and Remuneration Committee has become applicable to the Company. Nomination and Remuneration Committee (NRC) of the Board has been constituted. The Company has constituted NRC Committee on 23rd January, 2025. The NRC consists of the following Directors as on 31st March, 2026:

Name	Designation	Status in Committee
Mehul Narendrakumar Hingu	Independent Director	Chairman
Josna Rajeshkumar Pamula	Independent Director	Member
Vidiyala Navya Vasantha Lakshmi	Non-executive Director	Member

The Company Secretary of the Company act as a Secretary of the Committee.

Nomination and Remuneration Policy:

In accordance with the provisions of Section 178 of the Companies Act, 2013, the Board of Directors of the Company has adopted the Nomination and Remuneration Policy (the "Policy"). The Policy, inter alia, provides guidelines for the appointment, removal and remuneration of the Directors, Key Managerial Personnel and Senior Managerial Personnel of the Company. The said policy can be downloaded from the web link: https://tejaengineering.com/ShareHolder.aspx

DECLARATION BY INDEPENDENT DIRECTORS:

The Company has received necessary declaration from each independent director under Section 149(7) of the Companies Act, 2013, that they meet the criteria of independence laid down in Section 149(6). Code for independent directors of the Companies Act, 2013 and they have registered their names in the Independent Directors Databank. All those Independent Directors who are required to undertake the online proficiency self-assessment test as contemplated under Rule 6(4) of the Companies (Appointment and Qualification of Directors) Rules, 2014, have passed such test.

Based on the disclosures received from all independent directors and in the opinion of the Board, the independent directors fulfil the conditions specified in the Act and are independent of the Management. In the opinion of the Board, the independent directors so appointed possess requisite integrity, expertise, experience and proficiency.

FAMILIARIZATION PROGRAM FOR INDEPENDENT DIRECTORS

The Directors are regularly informed during meetings of the Board and its Committees on the activities of the Company, its operations and issues faced by the industry. The details of familiarization programs provided to the Directors of the Company are available on the Companys website www.tejaengineering.com .

ANNUAL EVALUATION OF DIRECTORS, COMMITTEE AND BOARD

The Nomination and Remuneration Committee of the Board has formulated a Performance Evaluation Framework, under which the Committee has identified criteria upon which every Director, every Committee, and the Board as a whole shall be evaluated. During the year under review the said evaluation had been carried out.

VIGIL MECHANISM FOR THE DIRECTORS AND EMPLOYEES

In compliance with the provisions of Section 177(9) of the Companies Act, 2013, the Board of Directors of the Company has framed the "Whistle Blower Policy" as the vigil mechanism for Directors and employees of the Company.

In compliance with the provisions of Section 177(9) of the Companies Act, 2013, the Board of Directors of the Company has framed the "Whistle Blower Policy" as the vigil mechanism for Directors and employees of the Company. The Whistle Blower Policy is disclosed on the website of Company at https://tejaengineering.com/ShareHolder.aspx

PREVENTION OF INSIDER TRADING

The Company got listed on stock exchange on 7th July, 2026. Hence, the provision of the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulation, 2015 and amendments thereto were not applicable to the company during the year. However, the company has in place a code of conduct to regulate, monitor and report trading by insider for prohibition of Insider trading in the shares of the Company. The code inter alia prohibits purchase/ sale of shares of the Company by its Designated Persons and other connected persons while in possession of Unpublished Price Sensitive Information in relation to the Company and during the period when trading window is close.

The company has also formulated a Code of practices and procedures for fair disclosure of Unpublished Price Sensitive Information (UPSI) and said code is available on the website of the Company https://tejaengineering.com/ShareHolder.aspx .

DEPOSITS

There were no outstanding deposits within the meaning of Section 73 and 74 of the Act read with rules made thereunder at the end of FY 2025-26. Your Company did not accept any deposit during the year under review.

COMPLIANCE WITH MATERNITY BENEFIT ACT, 1961

The Company has duly complied with the provisions of the Maternity Benefit Act, 1961 and the rules made thereunder, as applicable. The Company provides all applicable benefits to women employees in accordance with the said Act, including maternity leave, nursing breaks, and other prescribed entitlements. The Company is committed to ensuring a safe, inclusive, and supportive work environment for all employees, particularly women during and after maternity.

DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013

The Company has adopted a policy on prevention, prohibition, and redressal of sexual harassment at the workplace, in line with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

In line with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, the Company is duly constituted an Internal Complaints Committee (ICC) to redress complaints, if any, regarding sexual harassment.

During the financial year under review, no complaint was received by the Committee under the said Act.

Particulars	No. of Complaints
No. of Sexual Harassment Complaints received	0
No. of Sexual Harassment Complaints disposed off	0
No. of Sexual Harassment Complaints pending beyond 90 days.	0

No. of Employees as on Closure of the Financial Year

Sr No.	Gender	No. of Employees
1	Female	09
2	Male	2786
3	Transgender	0
Total		2795

SHARES

a. BUY BACK OF SECURITIES

The Company has not bought back any of its securities during the period under review.

b. SWEAT EQUITY

The Company has not issued any Sweat Equity Shares during the period under review.

c. BONUS SHARES

The Company has not issued any Bonus equity shares during the period under review.

d. EMPLOYEES STOCK OPTION PLAN

The Company has not provided any Stock Option Scheme to the employees.

ORDER OF COURT

There are no significant and material orders passed by the Regulators, courts or Tribunals impacting the going concern status and Companys Operations in future.

COMPLIANCE OF SECRETARIAL STANDARDS

The Directors have devised proper systems to ensure compliance with the provisions of all applicable Secretarial Standards and that such systems are adequate and operating effectively.

INTERNAL FINANCIAL CONTROLS

The Internal Financial Controls with reference to financial statements as designed and implemented by the Company are adequate. During the year under review, no material or serious observation has been received from the Statutory Auditors and the Internal Auditors of the Company on the inefficiency or inadequacy of such controls.

INTERNAL CONTROL SYSTEMS

Adequate internal control systems commensurate with the nature of the Companys business, size and complexity of its operations are in place and have been operating satisfactorily. Internal control systems comprising of policies and procedures are designed to ensure reliability of financial reporting, timely feedback on achievement of operational and strategic goals, compliance with policies, procedure, applicable laws and regulations. Internal control systems are designed to ensure that all assets and resources are acquired economically, used efficiently and adequately protected.

MAINTENANCE OF COST RECORDS & COST AUDIT

The maintenance & audit of cost records under section 148 of the act is not

DETAILS OF APPLICATION MADE OR PROCEEDING PENDING UNDER INSOLVENCY AND BANKRUPTCY CODE, 2016

There are no proceeding, either filed the Company or filed against the company, pending under the insolvency and Bankruptcy Code, 2016 as amended, before National Company Law Tribunal or other courts during the period, 2025-26.

DETAILS OF DIFFERENCE BETWEEN VALUATION AMOUNT ON ONE TIME SETTLEMENT AND VALUATION WHILE AVAILING LOAN FROM BANKS AND FINANCIAL INSTITUTIONS

During the period under the review, there has been no one time settlement of loan from banks and financial institution.

OTHER INFORMATION

The Company secretary and compliance officer of the company brought to the notice of Board of directors and Audit committee circular dated January 7, 2026 issued by the National Financial Reporting Authority regarding importance and requirement of structured, continuous and well-documented communication between statutory auditors and Those Charged with Governance (TCWG), including the Audit Committee.

In accordance with the circular dated January 7, 2026 issued by the National Financial Reporting Authority and upon recommendation of the Audit Committee in consultation with the Statutory Auditors, the Board is planning to adopt a framework to ensure effective two-way communication between Those Charged with Governance ("TCWG") and the Statutory Auditors.

ACKNOWLEDGEMENT

Your Directors wish to express their grateful appreciation to the continued co-operation received from the Banks, Government Authorities, Customers and Shareholders during the period under review. Your Directors also wish to place on record their deep sense of appreciation for the committed service of the Executives, staff and Workers of the Company.

	For & on behalf of Board of Directors of
	M/s. TEJA ENGINEERING INDUSTRIES LIMITED
Regd office:
A/14 Shantiniketan Society,
N/R Shravan Chokdi,
Bharuch -392001, Gujarat
	Sd/-	Sd/-
	Srinivasarao Vakalapudi	Suryakumari Vakalapudi
Date: 23/07/2026	(Chairman and Managing Director)	(Whole Time Director)
Place: Bharuch	DIN : 10116216	DIN : 10116215

#DREnd#

#MDStart#

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

ANNEXURE 3

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

This chapter on Managements Discussion and Analysis ("MD&A") is to provide the stakeholders with a greater understanding of the Companys business, the Companys business strategy and performance, as well as how it manages risk and capital. The following management discussion and analysis is intended to help the reader to understand the results of operation, financial conditions of Teja Engineering Industries Limited:

INDUSTRY STRUCTURE AND DEVELOPMENT:

The oil and gas sector is one of the eight core industries of India and exerts significant influence over decision-making across the other key sectors of the economy. Indias economic growth is closely linked to its energy demand, and the requirement for oil and gas is projected to rise steadily, making the sector attractive for continued investment.

The Government of India has introduced a series of policy measures to meet this growing demand. These include permitting 100% foreign direct investment (FDI) in several segments of the sector, including natural gas, petroleum products and refineries. The FDI ceiling for public sector refining projects has also been raised to 49%, without any disinvestment or dilution of domestic equity in existing public sector undertakings (PSUs).

The sector continues to draw both domestic and foreign investment, as reflected in the presence of major players such as Reliance Industries Limited and Cairn India. The industry is expected to attract approximately US$ 25 billion of investment in exploration and production. India already functions as a refining hub, with 23 operating refineries, and further expansion is being planned to tap foreign investment in export-oriented infrastructure, including product pipelines and export terminals.

This expanding industry landscape-spanning exploration, refining, gas distribution and export infrastructure-creates sustained demand for specialised operation, maintenance and engineering support services of the kind the Company provides, positioning it favourably within the broader growth of the sector.

OVERVIEW OF THE COMPANY:

Our Company was incorporated as "Teja Engineering Industries Private Limited" on April 17, 2023, under the Companies Act, 2013, bearing Corporate Identification Number (CIN) U33122GJ2023PTC140188, pursuant to a Certificate of Incorporation issued by the Registrar of Companies, Central Registration Centre.

 

In line with its core business objectives, the Company acquired the proprietorship firm M/s Teja Engineering Services ("TES"), owned by our Promoter, Mr. Srinivasarao Vakalapudi, through a Business Transfer Agreement dated July 17, 2023. TES was originally established on September 24, 2002, and the acquisition was approved by the shareholders at the Extraordinary General Meeting held on the same date. The Company was subsequently converted into a public limited company and renamed "Teja Engineering Industries Limited", with a fresh Certificate of Incorporation issued by the Registrar of Companies, Central Registration Centre, on September 19, 2023.

The Company was successfully listed on the SME Emerge platform of the National Stock Exchange (NSE) on July 7, 2026. In July 2026, it completed its Initial Public Offering (IPO), raising ?‚?3,735.60 lakhs through a fresh issue of 16,98,000 equity shares.

The Company offers a comprehensive suite of services across Operation & Maintenance (O&M), including Annual Maintenance Contracts (AMC); Erection & Commissioning (E&C), including project works and installation of stainless-steel tubing; and Overhauling, Decommissioning & Recommissioning. It also undertakes instrument calibration, non-destructive thickness testing of pressure vessels, and testing and servicing of Safety Relief Valves (SRVs).

The Company operates across the Oil & Gas, Power and Energy sectors, supporting Original Equipment Manufacturers (OEMs), CNG compressor packagers and public sector undertakings engaged in gas distribution and energy infrastructure. With a network spanning multiple states, the Company deploys technically skilled manpower and provides execution support for CNG stations, gas compression plants and natural gas distribution terminals. While the Company does not manufacture equipment, its role is central to ensuring the smooth, safe and efficient operation of energy infrastructure assets.

COMPETITIVE STRENGTHS:

Extensive Pan-India Presence

A key strength of the Companys business is its presence across Gujarat, Telangana, Andhra Pradesh, Tamil Nadu, Kerala, Karnataka, Goa (UT), Madhya Pradesh, Rajasthan, Odisha, West Bengal, Bihar, Jharkhand, Dadra & Nagar Haveli (UT), Assam and Maharashtra. This pan-India footprint reflects the Companys ability to mobilise manpower, resources and technical expertise across diverse regions. Teams are deployed at client sites such as CNG stations, gas compression plants and group gathering stations, ensuring that O&M activities meet client expectations and regulatory requirements. The ability to execute projects and deliver O&M services simultaneously across multiple states underscores the scalability and resilience of the Companys business model, as its operations are not dependent on any single geography.

Commitment to Quality and Industry Accreditations

The Company places strong emphasis on maintaining consistent quality across all stages of service delivery, from planning and execution to testing and final handover. This approach rests on three pillars: efficient use of resources, strict adherence to standards, and proactive monitoring of outcomes. This commitment is reinforced by the following certifications and accreditations:

PESO Certification under SMPV (U) Rules, 2016 (Rule 18), authorising testing of Safety Relief Valves (SRVs) and Pressure Safety Valves (PSVs) in compliance with prescribed safety requirements.

Recognition as an Authorised Service Provider of ABC Limited, a globally renowned manufacturer of Safety Relief Valves, reflecting the Companys technical competence and the trust placed in it by international industry leaders.

ISO 9001:2015 (Quality Management System), supporting consistency and precision across service processes.

ISO 14001:2015 (Environmental Management System), reflecting the Companys commitment to minimising environmental impact.

ISO 45001:2018 (Occupational Health & Safety Management System), ensuring a safe working environment and compliance with global occupational health practices.

Experienced Leadership with Extensive Domain Knowledge

The Company is led by its Promoter and Managing Director, Mr. Srinivasarao Vakalapudi, a first-generation entrepreneur with over 25 years of experience in procurement, Erection & Commissioning (E&C) and the Oil & Gas sector. His expertise spans maintenance, testing, erection, commissioning and Operations & Maintenance of natural gas infrastructure, and has been a cornerstone of the Companys steady growth.

Strong and Enduring Customer Relationships

The Company has built a diverse and loyal clientele across multiple industries and cities nationwide. Its consistent focus on quality in E&C, O&M and other specialised services has helped secure repeat and continuing business from existing clients while also attracting new customers, strengthening long-term relationships and customer retention.

OPPORTUNITIES:

The Company is well placed to benefit from several emerging opportunities within the oil and gas and broader energy services landscape:

Growing energy demand and capex cycle: Indias rising energy consumption and the Governments continued push for gas-based infrastructure, including expansion of CNG networks and city gas distribution, are expected to increase demand for O&M, E&C and allied technical services of the kind the Company provides.

Authorised SRV servicing arrangement: The three-year agreement with ABC Limited for repair and servicing of Safety Relief Valves opens access to a wider base of industrial clients across oil and gas, petrochemicals, chemicals, pharmaceuticals and OEM applications requiring certified maintenance.

Entry into gas compressor packages: The planned introduction of Gas Engine Driven Reciprocating Gas Compressor Packages (20,000 SCMD capacity) allows the Company to move up the value chain, from providing services alone to supplying fully integrated equipment with end-to-end installation, commissioning and technical support, thereby capturing a larger share of client spend.

Repeat business from PSU and OEM relationships: Long-standing relationships with public sector undertakings and OEMs, combined with a track record of reliable service delivery, position the Company to secure repeat contracts and expand wallet share as these clients undertake maintenance, upgradation and expansion of existing gas infrastructure.

Pan-India network as a platform for growth: The Companys existing presence across sixteen states and union territories provides a ready platform to scale into new geographies and adjacent service lines without having to build a distribution or manpower network from the ground up.

Accreditation-led differentiation: Certifications such as PESO, ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018 position the Company favourably in vendor empanelment and tendering processes, particularly with PSUs and large industrial clients where compliance credentials are a threshold requirement.

RISKS AND CONCERNS AND THREATS:

The Companys future results of operations could be affected by a number of factors, including:

Changes in laws and regulations applicable to the industry in which the Company operates.

The Companys ability to retain its key employees and other personnel.

The Companys ability to grow and scale its business operations.

The Companys expertise in tendering for contracts awarded by public sector undertakings (PSUs).

Any adverse legal proceedings initiated against the Companys Promoters.

Changes in fiscal, economic or political conditions in India.

In addition, the Companys performance may also be affected by:

Failure to comply with regulations prescribed by authorities in the jurisdictions in which the Company operates.

Competition from existing players as well as new entrants in the sector.

Variability in the budgeted allocation of funds by public sector undertakings, which could affect the timing and volume of contract awards.

Segment-wise or product-wise performance:

The Company operates in a single reportable business segment, comprising technical services rendered to the Oil & Gas, Power and Energy sectors, principally Operation & Maintenance, Erection & Commissioning, and allied testing and servicing activities. Given the integrated nature of these service offerings and the common client base of OEMs, CNG compressor packagers and PSUs, the Companys performance is reviewed and managed on a consolidated basis rather than through discrete product-wise reporting.

Outlook

The Company has been authorised by ABC Limited, a globally recognised manufacturer of safety valves, to undertake the repair and servicing of its Safety Relief Valves (SRVs) in India, pursuant to an agreement dated March 15, 2025. ABC Limited India manufactures a wide range of safety valves used across oil and gas, petrochemicals, chemicals, pharmaceuticals and OEM applications, which play a critical role in pressure control and the safe handling of gases during production, storage, transportation and processing. The agreement grants the Company non-exclusive rights to maintain, repair and service ABC Limiteds SRV products for a period of three years from the date of execution, strengthening the Companys service capabilities and positioning it to support a broader base of industrial clients requiring certified SRV maintenance.

The Company is also planning to introduce Gas Engine Driven Reciprocating Gas Compressor Packages with a capacity of 20,000 SCMD (Standard Cubic Meters per Day). Designed for natural gas compression at gathering stations of PSUs and corporate clients, each package will be an integrated system comprising advanced control panels, pressure regulators and high-efficiency filtration units.

This planned entry into the gas compressor solutions segment is driven by growing client requirements and positive feedback received during ongoing O&M engagements. By leveraging its technical expertise and long-standing industry relationships, the Company aims to supply fully integrated compressor systems along with end-to-end support, including installation, commissioning and technical assistance. This initiative is expected to expand the Companys service portfolio, strengthen client partnerships, enhance operational capabilities, drive revenue growth and support long-term market leadership in gas compression solutions.

Internal control systems and their adequacy

Adequate internal control systems commensurate with the nature of the Companys business, size and complexity of its operations are in place and have been operating satisfactorily. Internal control systems comprising of policies and procedures are designed to ensure reliability of financial reporting, timely feedback on achievement of operational and strategic goals, compliance with policies, procedure, applicable laws and regulations. Internal control systems are designed to ensure that all assets and resources are acquired economically, used efficiently and adequately protected.

Financial performance and operational performance

During financial year 2025-26, the Company continued its growth trajectory and registered improved performance in terms of revenue. There is a significant change in the key financial ratios for the year 2025-26 which are as below:

SR. No.	Ratios	Current Reporting Period	Previous Reporting Period	% of Change	Reason for variance
1	Current ratio	1.51	1.25	-21.56%	-
2	Debt Equity Ratio	0.76	0.96	21.16%	-
3	Debt Service coverage ratio	0.65	0.52	-25.00%	-
4	Return on Equity Ratio	0.40	0.44	10.06%	-
5	Inventory Turnover Ratio	3.40	4.61	26.25%	Mainly on account of increase in closing stock.
6	Trade Receivables turnover ratio	7.35	7.60	3.32%	-

 

 

7	Trade payables turnover ratio	76.84	44.83	-71.40%	Mainly on account of increase in Expenses & Trade Payables
8	Net capital turnover ratio	5.40	11.34	52.38%	Mainly on account of increase in revenue.
9	Net profit ratio	0.08	0.07	-10.99%	-
10	Return on Capital employed	0.53	0.51	-4.10%	-
11	Return on investment	N.A.	N.A.	N.A.	-

Material developments in Human Resources / Industrial Relations front, including number of people employed:

As on May 31, 2026 we had a strong workforce of 2795 employees. The Companys operations are manpower-intensive and largely dependent on a trained and skilled workforce deployed across client sites for Operations & Maintenance (O&M), Erection & Commissioning, installation, overhauling, recommissioning, gas compression operations, calibration services, and valve testing and maintenance.

Recruitment of personnel is carried out through the Companys internal team, based on operational requirements at various project locations and client sites. Personnel are recruited across different categories, including semi-skilled operators, skilled technicians, high-skilled in-charge personnel, and office staff, depending on the nature of services to be delivered. The Company believes that its recruitment practices, assignment-based training, and experienced supervisory structure enable it to manage large-scale O&M and project execution requirements efficiently. However, it remains exposed to risks associated with workforce availability, safety incidents, and operational disruptions inherent to manpower-driven service businesses.

The transition from a closely held company to a listed public limited entity has mandated a systematic professionalization of the human resource framework. Industrial relations remain completely cordial and productive, with zero instances of labor unrest or work stoppages. We believe that our employees are the backbone of our organization. We are committed to provide equal opportunities to all our employees and it emphasizes on welfare of its employees and it strives to engage and retain talented workforce at all levels. There exist peaceful and amicable relations with our employees.

Cautionary Statement:

Statements made in this report describing the Companys objectives, projections, estimates, and expectations may be forward-looking within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed or implied, depending on various factors beyond the Companys control.

	For & on behalf of Board of Directors of
	M/s. TEJA ENGINEERING INDUSTRIES LIMITED
Regd office:
A/14 Shantiniketan Society,
N/R Shravan Chokdi,
Bharuch -392001, Gujarat
	Sd/-	Sd/-
	Srinivasarao Vakalapudi	Suryakumari Vakalapudi
Date: 23/07/2026	(Chairman and Managing Director)	(Whole Time Director)
Place: Bharuch	DIN : 10116216	DIN : 10116215