Ucal Ltd Management Discussions

1. COMPANY OVERVIEW

UCAL LIMITED is among the leading Auto Component

Manufacturers in India, with a legacy of specialization in Fuel Management and Emission Control Systems in the Automotive Industry. Founded in 1985, the Company has earned the distinction of a preferred vendor and a leading supplier to Auto Majors and global OEMs for premium quality Carburettors, fuel management systems, emission control products, pumps & valves, including machined parts for critical applications in the auto and non-auto space.

UCAL offers a wide range of mechatronic components and systems aligned to global regulatory standards that address the dynamically changing technological trends of the automotive industry such as zero emission, electrification, light-weighting, composite materials, integrated electronic and flex-fuel systems, among others. Globally, as sustainability trends dictate the mobility landscape with EVs and alternate energy gaining prominence, UCAL is accelerating its participation in the fast-evolving EV space.

As part of its transformational strategies to build a strong, and future-ready organisation, the Company is expanding the ambit of its operations to encompass emerging segments in both the auto and non-auto space across new geographies and high potential markets.

2. ECONOMIC OVERVIEW - GLOBAL

The global economy, was impacted by the geopolitical tensions of the Israel-Gaza conflict expanding in the Middle East, the long drawn and protracted war between Ukraine and Russia dividing the world, and unpredictable policy shifts of governments leading to economic fragmentation and tightening of monetary policies. Uncertainties were amplified by the weaponisation of tariffs while trade barriers drawn on political faultlines impacted global trade. According to the IMF - World Economic Outlook, global growth dived down to 2.8% during FY 2024-25 from 3.2% the previous year. Economic Growth showed a sharp decline across nations with advanced economies weakening to 1.4% from 1.8% in the previous year, while emerging markets and developing economies slid down to 3.7% from 4.3% in FY

2023-24.

Global growth, as per IMF, is forecast to further deteriorate if uncertainties continue and countries do not resolve political and trade hostilities at the negotiating table.

3. ECONOMIC OVERVIEW - INDIA

The Indian Economy recorded a GDP of 6.2% in 2024-25 from its previous years high of 7.6%. However, in a ‘growth scarce environment, the country continued to retain its position among the fastest growing economies in the world, while surpassing Japan as the 3^rd largest economy in global ranking, with a projected GDP of $7.3 trillion by 2030. The transformation of the countrys economy is the outcome of a decade of strong governance, visionary reforms, supportive government policies and robust growth across key sectors.

The Union Budget 2025-26 with its theme of " Sabka Vikas" emphasized the need for an inclusive and balanced growth of all regions. Outlining the broad Principles of

Viksit Bharat, the Budget focused on policies designed to promote long-term growth and sustainability in critical sectors such as agriculture, infrastructure, energy, healthcare, and technology.

The Budget also outlined the Governments continued support for public transport and e-mobility, including a commitment to sustainability. According to the Expenditure Budget, Ministry of Road Transport and Highways, in 2025-26, Rs 1,16,292 crore has been allocated towards roads and bridges, 5% higher than the revised estimates for 2024-25.

The countrys Manufacturing Mission initiative with supportive government policies, strengthening urban livelihoods, promoting Public Private Partnership in Infrastructure, Research, Development and Innovation are all measures that bode well for the future.

Industry Overview

Globally, light weight vehicles with a focus on fuel efficiency, emission control, performance and driver experience are dictating market trends. The increasing thrust on advancements in engine technologies, is driving market growth toward more compact, efficient and environmentally friendly automotive solutions.

The Asia Pacific Region has emerged as the fastest growing Automotive market in the world with China and India driving vehicle densities with their large and aspirational demographics, burgeoning customer demand and urban expansion.

In India, the Automobile sector is one of the main growth engines of the country, contributing a sizeable amount to the exchequer. The sector is poised for exponential growth with supportive Government policies for the industry such as the Production Linked Incentive (PLI) scheme, vehicle scrappage policy, the 100% FDI and the ‘Make in India initiative. Additionally, the low-cost manufacturing advantage combined with a large and skilled workforce, is turning India into a preferred destination of global OEMs and Auto majors, in their re-shoring and China Plus One strategies, adding to the long-term growth prospects of the industry.

The growth in export sales of Indian automotive products is attributed to a combination of factors, including cost-effective manufacturing, government support, such as the Production Linked Incentive (PLI) and the Automotive Mission Plan both of which encourage production and exports, technological advancements, and increasing global demand for Indian vehicles. Additionally, research and development investments are leading to the production of high-quality vehicles that are aligned to international standards, thereby raising their demand in global markets

Key allocationsin the Union Budget 2026

Further supporting the growth of the industry, and to promote more buses and electric mobility the Union Budget for 2026 made some key allocations with a significant financial outlay.

1. PM e-Bus Sewa Scheme: Aimed at improving urban bus transport in India by providing nearly 10,000 urban buses to cities. An allocation of 1,310 crore was made in the years budget (up from 500 crore in 2024).

2. PM e-Drive Scheme: This new flagship scheme received an increased allocation from Rs 1,870 crore in 2024 to Rs 4,000 crore this year. This is a two-fold increase and is earmarked for procuring 14,000 new e-buses, 1,10,000 e-rickshaws, e-trucks, and e-ambulances.

3. Production

Storage: The National Programme on Advanced Chemistry Cell (ACC) Battery Storage, received an allocation of Rs 155.76 crore, during the year under the overall PLI scheme. This will enable battery manufacturers to reduce battery costs and provide a further impetus for the adoption of EVs.

According to estimates, India needs 2,00,000 urban buses, but only 35,000 are operational (inclusive of e-buses). There is a huge untapped potential in this transportation space in the future.

Key Highlights from FY 2024-25

Supportive Government policies, infrastructure investments, continued emphasis on sustainable mobility and strong market demand helped in driving the growth of the automobile industry in India. According to SIAM (Society of Indian Automobile Manufacturers), in FY 2024-25, the Automobile sector in India recorded an overall growth of 9% and 7.3% in the domestic market, while exports recorded an upsurge, rising by 19.2% driven by strong global demand

Segment-wise -Source: SIAM OEM Segment

SIAM attributed this performance to strong customer demand, government support, infrastructure investments, and a growing focus on sustainable mobility. Positive economic policies and strong market sentiment further lent an impetus in sustaining the growth

In the segment-wise performance, passenger vehicle sales in India touched a record high of 4.3 million units in FY 2024-25, marking a 2% increase compared to the previous year. Utility Vehicles (UVs) were the primary growth driver, capturing 65% of the passenger vehicle market share.

Passenger Vehicles however witnessed their highest ever exports in FY 2024-25 registering a growth of 14.6% as compared to FY 2023-24. Growth in exports have been driven by demand of global models being manufactured from India, in markets of Latin America and Africa. New model launches, packed with advanced features and modern design, resonated strongly with consumer aspirations while attractive discounts and promotional offers supported growth momentum and helped sustain volumes.

Two-Wheelers

Domestic two-wheelers with sales of 19.6 million units registered a growth momentum of 9.1% in FY 2024-25 over FY 2023-24. Strong monsoons and bountiful harvests helped enhance rural demand and resurgence in consumer confidence helping the segment to recover. Linked Incentive (PLI) for

The scooter segment witnessed a demand uptick due to improved rural and semi-urban connectivity and availability of an attractive range of models with enhanced features. The adoption of Two-Wheeler - EVs crossed 6% of the overall segment sales during the year.

In FY 2024-25, Two-Wheeler exports registered a good growth of 21.4% as compared to the previous year with a total of 4.2 million units.

While the roll-out of new models and foraying into new markets helped in expanding the footprint of two-wheeler exports. economic stability in the African region and demand in Latin America further supported this growth.

Three-Wheelers

In the domestic market, three wheelers recorded the highest ever sales of 7.4 Lakh Units in FY 2024-25 recording a growth of 6.7% compared to previous year. Growth was primarily driven by the demand of Passenger sub-segment and the growing requirements for last-mile mobility solutions, in urban and semi-urban areas including E-vehicle. Replacement demand and easier availability of financing has also helped this segment

Three-Wheeler exports touched 3.1 Lakh units, growing by 2.3% in FY 2024-25 as compared to FY 2023-24.

Commercial Vehicles

The Commercial vehicle segment witnessed a marginal de-growth (-) 1.2% in FY 2024-25 compared to previous year. However, exports of Commercial Vehicles of 0.81 Lakh units posted a good growth of 23% in FY 2024-25 as compared to previous year.

While the overall trucks segment witnessed a slight de-growth, the requirement of freight transportation has been met with fleets migrating towards higher GVW vehicles. The enhanced infrastructure of highways and expressway network has turned out to be a key enabler in reducing logistics costs and improving regional connectivity, thereby contributing to the performance of the segment. The infrastructure development has additionally helped in driving sales of buses for inter-city travels, and this focus on mass-mobility in intra-city routes has also helped the CV segment (Source: SIAM).

EV Adoption Trends (Source: SIAM Analysis of Vahan Database)

Total EV registrations in the country reached 1.97 million units in FY 2024-25 compared to 1.68 million units FY 2023-24 posting a growth of 16.9%.

Electric Passenger Vehicle registrations crossed 1 Lakh units in FY 2024-25 registering a growth of production 18.2% as compared to previous year.

Registration of e-Two Wheelers grew by 21.2% in FY 2024-25 as compared to previous year, with 11.5 Lakh units.

Registration of all types of e-Three Wheelers grew by 10.5% in FY 2024-25 as compared to FY 2023-24, with registrations of close to 7 Lakh units.

Recent policy interventions of Government of India including Electric Mobility Promotion Scheme (EMPS) from 1^st April 2024 to 30^th September 2024, followed by the PM E DRIVE and PM e-Sewa schemes, coupled with EV launches by several manufacturers has provided the necessary momentum for the adoption of electric vehicles in the country.

EV Challenges

However faster adoption of EVs in the country has been constrained by battery range limitations, low density in charging infrastructure and a perceived threat of non- availability of replacement components. The limited availability of rare-earth magnets and critical materials however remain a concern for the future of EV and mobility manufacturing in India.

Automobiles- Retail Segment

As per FADA (Federation of Automobile Dealers Association) the Indian Auto Retail sector in FY 2024-25 achieved a notable 6.46% YoY growth, with rural markets outperforming urban areas in two-wheeler (2W), three-wheeler (3W), and Passenger Vehicle (PV) sales. While

2W sales registered a growth of 7.71%, PV grew by 4.87% and CV saw a slight decline of 0.17%.

2W sales in rural areas grew by 8.39% compared to 6.77% in urban areas. 3W sales in rural areas rose by 8.70% while urban areas saw only 0.28% growth. PV sales also performed better in rural regions with 7.93% growth versus 3.07% in urban areas

The growth in export sales of Indian automotive products is attributed to a combination of factors, including cost-effective manufacturing, government support, such as the Production Linked Incentive (PLI) and the Automotive Mission Plan both of which encourage production and exports, technological advancements, and increasing global demand for Indian vehicles. research and development investments are leading to the

of high-quality vehicles that are aligned to international standards, thereby raising their demand in global markets.

Growth of Indias automotive exports, in the EV segment is driven by a growing awareness of sustainability and the increasing adoption of electric vehicles (EVs) in the country. Government support programmes like the FAME Scheme and the Electric

Mobility Promotion Scheme are further accelerating the transition to EVs in the country.

Automobiles- Aftermarket Segment

The Automotive Component Manufacturers Association of India (ACMA) the apex body representing Indias Auto Component manufacturing industry in its Industry Performance Review reported that the Indian auto component industry achieved a turnover of Rs 6.73 lakh crore (USD 80.2 billion), registering a year-on-year growth of 9.6%. The industry grew at a CAGR of 14% from FY20 to FY25, nearly doubling in size over the past five-year period.

Auto component supplies to OEMs stood at Rs. 5.70 lakh crore, registering a growth of 10% year-on-year, driven by an 8% increase in overall vehicle production in the country. The Aftermarket, estimated at Rs. 99,948 crore also witnessed a growth of 6 percent.

Demand for increased value-added components and shift in market preference for larger and more-powerful vehicles continued to bolster the turnover of the auto-components sector.

OEMs and Auto Manufacturers are accelerating their alignment to evolving customer expectations and global supply chain dynamics by investing in higher value-addition, technology upgradation, and localization.

Growth Outlook for FY 2025-26

Looking ahead to FY 2025-26, the automotive sector is expected to hold on to its growth momentum. Stable macroeconomic conditions, proactive government policies, infrastructure expenditure, and normal monsoons forecasted for 2025 are supposed to further prove beneficial to the growth of the industry. The Budgets personal income tax reforms and consecutive back-to-back rate cuts by the RBI are expected to boost vehicle financing, further stimulating market demand.

Export markets, especially in Africa and neighbouring regions, will continue to present opportunities for growth, with Made in India vehicles increasingly gaining traction internationally. (Source- SIAM Reports)

Evolving geopolitical uncertainties, and potential spillover from US tariff changes are potential factors that could temper consumer sentiment and market growth.

4. INTERNAL COMBUSTION ENGINE SYTEMS

UCAL is among the leading manufacturers of Fuel Management and Emission Control Systems in India with an established presence in the global automotive space. The Companys market leadership and more than six decades of industry experience provide it the resilience and agility to keep pace with the rapidly changing technologies in the mobility landscape.

To hasten the pace of its transformational journey for greater growth and global scale, UCAL is enlarging its portfolio of products to address new and emerging opportunities in the Automotive and Non Automotive space. We share a few of the product lines where the Company has consolidated its position both in the domestic and global market.

Globally, the Internal Combustion Engine market has continued to record significant growth which is further expected to increase driven by a burgeoning demand for passenger and commercial vehicles in emerging and developed economies. Despite reports of the phasing out of internal combustion engines from all motor vehicles is supposed to be completed by 2040, ICE (Internal Combustion Engines), according to market analysts, will continue to be an important part in all end-user verticals such as automotive, construction, mining, agriculture and power generation, with Asia Pacific being the dominant market

5. FUEL MANAGEMENT SYTEMS

The global Fuel Management Systems (FMS) market is projected to reach approximately USD 2.38 billion by 2032, with a Compound Annual Growth Rate (CAGR) of 7.52% between 2024 and 2032. This growth is driven by increasing demand for better fuel management to improve efficiency and reduce costs across various industries, including transportation, logistics, mining, and construction. (Source:Straits Research)

The 2 Wheeler Fuel Injection Systems Market achieved a valuation of USD 12.5 billion in 2024, and it is forecasted to climb to USD 20.3 billion by 2033, growing at a CAGR of 7.1% from 2026 to 2033 on the back of rapid advancements in technology and increasing market demand.

UCAL has a significant presence in Fuel Management and Emission Control systems, and continues to partner with major OEMs and Auto manufacturers on customized solutions in the segment.

6. CARBURETTORS

Carburettors play a critical role in blending air and fuel for combustion in internal combustion engines, making them essential for efficient engine operation in compact machines. The global Small Engine Carburettors market in the Automobile and Transportation category is projected to reach USD 1.8 billion by 2031, growing at a CAGR of 5% from 2025 to 2031.

Despite the rise of fuel injection systems, Carburettors remain widely used due to their cost-effectiveness, ease of maintenance, and suitability for low-complexity engines. Growth in residential landscaping activities and small-scale farming in both developed and developing regions continues to support the demand for small engine Carburettors.

Globally, continuous innovation is driving the development of more environmentally friendly carburettor models in Automobile and Transportation applications. Manufacturers are focusing on improving fuel efficiency, reducing emissions, and enhancing performance through better materials and precision engineering in carburettor design.

The aftermarket segment is also expanding due to the need for regular maintenance and replacement of parts in older equipment. Asia Pacific is expected to witness strong growth due to increased manufacturing output and growing demand for cost-effective equipment solutions. The small engine Carburettors market is set to maintain a positive trajectory through 2031 as utility equipment remains an essential component of residential, commercial, and agricultural operations.

(Source: Market Research Intellect)

As one of the major carburettor manufacturers globally, UCAL has a proven track record of developing small engine Carburettors for key OEMs. While our e-Carburettors have been phased out in line with technology change to EFI systems, our Mechanical Carburettors find wide application in Motorcycles, Power Sports, Snowmobiles, Stationery Engines and in Universal Gasoline Engines both in the Automotive and Non-Automotive segments.

According to market validation, major OE manufacturers will continue to use Carburettors for their small engines in the foreseeable future. This has led UCAL to strategically shift its focus towards capturing a dominant share of the global small engine carburettor market with a significant rise in carburettor exports during FY 2024-25, of Rs 45 Crores cumulative value.

Over and above the small automobile engines, there is a big market for small stationery engines and focus towards capturing the share is planned.

7. AUTOMOTIC ELECTRONIC CONTROL UNIT

Growing demand for feature-intensive vehicles and the focus of OEMs to provide advanced software features are the drivers for the growth of the automotive electronic control units (ECUs) market. In addition, the rising demand for safety systems in vehicles and the increasing need to reduce fuel consumption and pollutant emissions are further attributed to drive market growth.

The global automotive electronic control unit market size valued at USD 99.39 billion in 2022 is anticipated to grow at a compound annual growth rate (CAGR) of 5.9% from 2023 to 2030 (Grandview Research).

UCAL is expanding its geographical footprint in the ECU market with custom designed products for OEMs, OES and the Export Aftermarket segment

8. AUTOMATIC THROTTLE BODY ASSEMBLY

The global automotive market has been marked by a major shift towards Electronic Throttle Bodies (ETBs), which offer precise control over airflow and contribute to smoother engine operation compared to mechanical counterparts. As a result, electronic throttle bodies are witnessing higher adoption rates across various vehicle types, reflecting the industrys inclination towards improved performance and driving dynamics.

In the 2W OEM segment, the global throttle body market for motorcycles is witnessing transformative trends that are reshaping the landscape of motorcycle performance and efficiency. The rise of electric motorcycles is influencing throttle body design and functionality. As electric vehicles gain traction, hybrid models are emerging, necessitating throttle bodies that can seamlessly integrate with electric propulsion systems. This integration requires innovative engineering solutions to ensure that traditional combustion engines and electric motors work harmoniously. the incorporation of advanced sensors allows for real-time monitoring of engine parameters, enabling throttle bodies to adapt dynamically to changing conditions

The growing popularity of performance-oriented motorcycles and the customization trend among motorcycle enthusiasts seeking personalized enhancements to achieve higher horsepower and torque outputs, is driving the growth of Electronic Throttle Body Systems in the Aftermarket sector.

UCAL is a major manufacturer of Electronic Throttle Body products for both Auto OEMs and the Aftermarket in 2-Wheeler FI system, and for the CNG and Hydrogen applications in commercial vehicles.

9. AUTOMOTIVE EMISSION CONTROL SYSTEMS

The global automotive emission control systems market is projected to experience significant growth in the coming years, driven by increasing environmental regulations and the need to reduce pollution. The market for Automotive Emission Control Systems which stood at USD 45.5 Billion in 2024 is forecast to reach USD 66.2 Billion by 2033, registering a 4.5% CAGR from 2026 to 2033. (Source: Verified Market Reports)

Increase in vehicle densities in passenger cars and commercial transport, enhanced standards in safety requirements and government regulations such as Euro VI emission standards are the major growth drivers of this market. This segment is also expected to grow further, fueled by advancements in engine technology and stricter emission regulations for vehicles.

The growing global concerns on environmental protection has led to strict Governmental mandates and regulatory standards to contain emissions across industries, including the Auto industry. In line with the UN Sustainability Goals - 2030, Governments across the world have committed to reducing greenhouse gases and pollution, with the aim of reaching Net Zero or zero carbon neutrality by 2070.

The market potential for emission control systems is large and growing at an exponential rate.

At UCAL, emission control systems form an important part of our product portfolio. During the year, the Company continued to develop new emission control products for OEM projects aligned to the dynamically changing regulatory standards of the Automotive industry.

10. PUMPS & VALVES Automotive Pumps

The automotive pumps market is projected to grow from USD 62.8 billion in 2025 to USD 88.9 billion by 2035, advancing at a compound annual growth rate (CAGR) of 3.5% over the forecast period. This growth is being supported by increased deployment of efficient fluid handling systems across ICE and hybrid vehicle platforms.

(Source: Future Market Insights)

Automotive Pumps find wide applications in a wide range of vehicles from Battery operated to Fuel Cell platform vehicles such as BEV, HEV, PHEV and FCEV and hence offer a huge market opportunity.

The automotive oil pump market can be segmented into mechanical oil pumps, electric oil pumps, and variable oil pumps. The automotive oil pump market is expected to continue its growth trajectory, driven by technological advancements, increasing vehicle production, and stringent environmental regulations. The development of smart and efficient oil pumps will be a key factor in shaping the future of this market.

At UCAL, our environment-aligned Automotive Oil

Pumps, Vacuum Pumps, E-Coolant Pumps are an important product segment of the Company addressing both Fuel-based and Electric Vehicle segments.

Automotive Valves

The global automotive valves market size was valued at $26.6 billion in 2023, and is projected to reach $51.9 billion by 2033, growing at a CAGR of 7.1% from

2024 to 2033. (Allied Market Research) Automotive Throttle Valve

The global automotive throttle valve market is experiencing substantial growth, driven by the increasing demand for enhanced engine performance and fuel efficiency in vehicles. The market is projected to reach USD 6.8 billion by 2031, with a CAGR of 5.5% from 2025 to 2031. This growth is fueled by the adoption of electronic throttle valves (ETVs) and the continuous innovation in automotive and transportation applications. The market is segmented into Electronic Throttle Valves (ETVs) and Manual Throttle Valves (MTVs), with ETVs dominating due to their superior control and integration with Electronic Control Units (ECUs). GlobeNewswire

Throttle valves are crucial for controlling engine airflow, maximising fuel combustion, and improving car performance. Throttle valve systems are becoming important as auto manufacturers focus on cutting emissions and increasing fuel economy, Demand for improved engine performance, technological developments in engine management, compliance with emission rules and transition to turbocharged engines are the drivers of the Automotive Throttle Valve market

UCAL has expanded its presence in this high technology space with Automotive Throttle Valves for both the domestic and export market.

AUTOMOTIVE VARIABLE VALVE TIMING (VVT)

The Automotive VVT System Market size reached USD 68.4 billion in 2024 and is projected to soar to USD 121.8 billion by 2033, reflecting a CAGR of 6.7% from 2025 to 2033. Driven by emission regulations, consumer demand for efficiency, and technological innovation in valve train systems, the industry is set to expand across all regions - with Asia-Pacific leading the charge (Source: Ameco

Research)

VVT stands for Variable Valve Timing, a technology used in internal combustion engines to optimize the timing of the intake and exhaust valves. In simpler terms, it adjusts when and how long the engines valves open and close - based on engine speed, load, and other driving conditions. By optimizing the combustion process, VVT helps burn fuel more efficiently to provide better mileage and enhances engine performance for smoother acceleration and higher torque output at both low and high RPMs, giving drivers a more responsive vehicle.

Passenger vehicles, particularly in gasoline, hybrid and performance model deployments represent over 65% of VVT integration, followed by light and heavy commercial vehicles, while EV penetration remains limited for ICE-based systems.

Pivoting its R&D capabilities, UCAL has successfully launched VVT products for the domestic and global markets for the OEM and aftermarket segment.

11. AUTOMOTIVE ELECTRONICS

The automotive industry is transitioning rapidly from hardware-driven vehicles to software-driven vehicles, with growing automation increasing the number of electronic and software components in a vehicle. This is consequently fueling the burgeoning growth of the automotive electronics market.

The growing adoption of Hybrid Electric Vehicles (HEV) and Electric Vehicles (EV) is also expected to drive the demand for automotive electronics components. Automation, AI integrated connected cars, data-driven diagnostics for passenger guidance and safety, in-vehicle entertainment, V2V & V2X technologies, etc. are driving rapid changes in the automotive space, with electronics forming a critical component of vehicle manufacturing.

UCAL is pursuing a clearly defined roadmap for expanding its capabilities in the electronic space to address emerging market needs. The Electronics Division with a dedicated R&D wing is focused on developing products in automotive electronics to address the growing demand in the segment. At UCAL, new electronic products and sensors were developed for Auto OEMs at the Companys state-of-the-art facility, which are at different stages of development and market launch.

12. EV LANDSCAPE

The Government of India has introduced several supportive measures for EV manufacturers, such as the enhancement of e-charging infrastructure, establishing charging stations across the highways in the country and the grant of subsidies for EV manufacturing and adoption which will help build a strong EV ecosystem while enabling the country to meet its Net Zero commitment by 2070.

At UCAL we are focused on the development of a comprehensive range of systems and components to address the rapidly evolving E-mobility space.

13. CASTING & MACHINED COMPONENTS

The global die casting market size valued at USD 69.72 Billion in 2024 is estimated to reach USD 112.27 Billion by 2033, exhibiting a CAGR of 5.17% during 2025-2033. Asia Pacific currently dominates the market, holding a market share of over 54.3% in 2024 (Source: IMARC

Group). The die casting market is currently experiencing significant growth and evolution.

Die Casting plays an important role in contemporary customization, production due its adaptability and flexibility to create complex components with ease. It is widely used in contemporary production using new alloys for casting products of high strength, endurance, and corrosion resistance for demanding industrial and automotive applications. Stringent regulations on pollution and energy efficiency requirements including lightweight vehicles are triggering the growth of the metal casting industry.

The end-use segment is divided into automotive and transportation, equipment and machine, building and construction, aerospace and military, and others. The automotive and transportation segment dominates the segment with the largest market share.

Machining

The global automotive machining market is experiencing significant growth, projected to reach USD 94.7 billion by 2032 with a CAGR of 5.8%. This growth is fueled by increasing demand for electric vehicles, advancements in manufacturing technologies, and the adoption of Industry 4.0 solutions. Key trends driving the segment are Electrification, Automation and Industry 4.0, Lightweight Materials, Customization and Flexibility in process and

Environmental Concerns.

The automotive segment accounted for the largest market revenue share in 2024. The need for high-precision components in engines, transmissions, and other critical systems drives the segments growth. Precision machining plays a crucial role in producing the intricate parts required for traditional internal combustion engines and EVs. With the global shift towards EVs and more stringent emissions regulations, automotive manufacturers increasingly rely on precision machining to create lightweight, high-performance parts that improve efficiency. In addition, the demand for high-quality components in the automotive propels the growth of this segment.

The U.S. precision machining market is anticipated to grow significantly from 2024 to 2030, driven by its leadership in high-tech industries such as aerospace, defense, and medical devices. The countrys well-established manufacturing sector and focus on innovation make it a key market for advanced machining technologies, such as multi-axis CNC machines and laser machining. Furthermore, the U.S. defense sectors need for precision components is a significant driver as the government continues to invest in military modernization.

UCAL designs and manufactures High Pressure Die Casting and Precision Machined Products for critical applications. The backward-integration capabilities of the Company lend it the advantage to leverage its casting facilities across its Plants in India, and machining facilities in India.

In line with its two-pronged ‘Repositioning and ‘New Product Development Strategies for export growth, the Company enlarged its presence in the rapidly growing casting and machining segment, recording a significant rise in sales revenue during FY 2024-25.

BUSINESS REVIEW

A. Manufacturing

Spread across India, UCALs state-of-the-art manufacturing plants with advanced, automated process systems, cater to the stringent demands of a long list of marquee customers comprising Auto Majors and Global OEMs in the Automotive and Non Automotive space

During the year, the Company continued building capabilities in plants and processes with a focused thrust on expanding its product portfolio to address new and emerging market segments. Aligned to this strategy, manufacturing lines have been established for the production of Intake Throttle Valve, HC Doser and Mechanical Throttle Body at Maraimalai Nagar, Plant-6, including a dedicated facility at Mahindra World City (EOU) for the manufacture of water outlets for the export aftermarket and new facilities at the Bawal Plant for the manufacture of Oil Pumps and Crank Case.

UCAL continued its transformational journey towards manufacturing excellence by a focused thrust on customer- centricity, premium quality products, safety and sustainability. The Companys sustainability-centred manufacturing facilities continued to optimize operational efficiencies, reducing costs, eliminating wastage and adhering to the highest emission and zero discharge standards. with energy efficient processes and circular practices in resource management.

UCALs all manufacturing plants are certified for ISO 14001 Environment System and ISO 45001:2018 Environment Health & Safety Standards with periodic assessments to ensure compliance.

Pursuing leaner, greener, manufacturing processes to reduce environmental footprint, UCAL enhanced its renewable energy usage by drawing more than 70% of its energy requirements from wind power, solar energy and Natural Piped Gas.

B. Operational Performance

UCAL LIMITED (UCAL) is among the leading manufacturers of an extensive range of critical components and fuel management systems for the automotive industry. The Companys wide array of products include mechatronic and electronic products for critical applications in the Auto and Non Automotive space. To name a few, engine and fuel management systems, emission control products, throttle body assemblies, valves, pumps, and high pressure die casting and precision machined products.

With proven industry experience, UCAL has earned a reputation for its value-led innovation and engineering expertise, emerging as a total mechatronic solutions partner to more than 35+ large OEMs and Auto Majors worldwide.

Keeping pace with the dynamically evolving automotive landscape, UCAL is accelerating its transformational journey to build resilience and to rise.

The Company enlarged it casting and machining operations with the supply of heavy duty casting and machined products for Domestic & global OEMs, HD Injector for export market and High Tonnage Crank Case for the domestic market

C. Marketing

To keep pace with the rapidly changing technologies driving the automotive landscape, UCAL expanded its product portfolio with a slew of new products to address emerging market segments and new geographies. The new range of products include Mechanical Throttle Body Electronic Throttle Body Assembly, Electronic Fuel Injection Systems (EFI) parts, Engine or Electronic Control Unit (ECU) for 2W application, Intake Throttle Valve, HC Doser for different diesel applications in commercial vehicles, Fuel Rail Assemblies, Oil, Vacuum & Coolant Pumps for Passenger Cars, Smart Intake Throttle Valve, Water Outlets and, electronic products for multi-applications including the Casting & Machined products for global OEMs to name a few.

Despite the drop in sales of e-Carb and EASV products due to tech-phase out, the overall sales in this segment was maintained by New business and Export growth. Sales in 2 wheeler Carburettors recorded a 25% growth over the previous year, while Mechanical Throttle Body Sales for the 2

Wheeler segment grew more than 20% compared to 2023-24.

UCAL expanded channel footprint both in the ge domestic and overseas markets. Around 30 new Distributors were appointed across regions for greater market penetration, including the on-boarding of a major overseas Distributor with presence in 10 countries worldwide. Further, in the domestic market, 15 new cities have been mapped out for new Distributor appointment. The Company recorded a significant rise in Aftermarket sales with more than 40% growth in the segment during the year.

India is accelerating the transition to green mobility and green energy with the active development of Electric Vehicles (EV). Supportive government programmes such as the PM e-Drive Scheme and

PM e-Bus Sewa Scheme with an enhanced budget outlay for FY 2025-26 augurs well for the growth of the EV transport ecosystem in the country. To leverage the potential in this rapidly growing EV space, UCAL has expanded its product portfolio with a slew of new, value-led, and differentiated products to be launched in FY 2025-26.

D. Technology

Six decades of industry experience and technology leadership, state-of-the-art manufacturing facilities, . a best-in-class NABL and DRDO accredited R&D center driving innovation - this capability spectrum in innovation, design, product manufacturing and validation provides UCAL a competitive edge in offering customer value and consolidating its position as a preferred vendor to OEMs and Global Auto manufacturers.

At UCAL the R&D focus during the year was to develop new systems and solutions for niche and sustainability-centered applications in emerging segments in the Auto and Non-Auto space.

In the Automotive segment, the strategy was to keep pace with the rapidly changing technologies and global regulatory standards dictating the mobility segment such as electrification, hybridization, engine downsizing (Gasoline Direct Injection with Turbo charge), fuel efficiency, zero emission, light-weighting and the increasing use of in-vehicle electronics.

The Companys Electronics Division with a dedicated R&D wing comprising a team of specialists and domain experts, continued to deepen its capabilities in the design development and manufacturing of cutting- electronic products for the EV segment. E. Global Footprint

In line with its two-pronged Global Export Strategy of Repositioning and New Product development,

UCAL expanded its customer roster and channel presence in the global market with a significant growth in export sales during the year.

UCALs expanded its geographical footprint and customer bandwidth of large OEMs and Auto manufacturers, in addition to Large Distributors and Marquee Merchant Customers for the Aftermarket in the US, ASEAN, Latin American and South African countries.

The Company is also a trusted vendor and a leading supplier of high-quality automotive systems and components to OEMs and Auto Manufacturers in the country, who export their vehicles to more than

100 countries across the world. F. Sustainability

At UCAL, sustainability forms the bedrock of our business philosophy and is a major driver of all our We continued to design and manufacture products and systems that are frugally engineered, energy efficient and sustainability centered.

G. Financial Performance

During the year, your Companys total standalone revenue was 58,279.83 Lakhs as against 48,248.34 Lakhs in FY 2023-24 representing an increase of 20.79% over that of the previous year due to increase in the customer requirements.

The Consolidated revenue of the Company has also witnessed an increase from 72,314.67 Lakhs in FY 2023-24 to 80,229.47 Lakhs registering a growth of 10.94%.

The PBDIT has increased from 5,274.68 Lakhs (FY2023-2024) to 7,495.86 Lakhs (FY 2024-2025) due to sale of land and overall increase in the revenue of the Company.

The Company has netted a Profit After Tax (PAT) of 2,260.37 Lakhs contributing 3.88% of the turnover of FY 2024-25. The Consolidated net loss during the year was 1628.00 Lakhs in comparison with previous year which stood at 2525.91 Lakhs.

The Finance Cost has increased from 1752.54 Lakhs for the year ended FY 2023-24 to 2253.61 Lakhs in FY 2024-25 mainly on account of additional borrowings made by the Company during the year to meet Capex requirements and to address the ge vendor payments.

The Depreciation stood at 2,227.28 Lakhs for the year ended 31st March, 2025 under study when compared to 1822.78 Lakhs in the previous year

2023-24.

PBT (Profit Before Tax) for the Financial Year 2024-25 stood at 3014.97 Lakhs, as against 1699.36 Lakhs, in the previous year.

During the year ended 31^st March 2024, the Company has made addition to the fixed assets to tune of 1712.16 lakhs including net assets capitalized from WIP and Capital Advances.

SALES PERFORMANCE

Deepening customer engagement with innovative cutting- products and value-added engineering, foraying into new and emerging spaces, increasing channel density, expanding geographical footprint, were some of the go-to-market strategies deployed to grow the business. While the export market witnessed significant demand, the Aftermarket added to the robust growth across the OEM and Spares segments.

Product		FY 2024-25	FY 2023-24
	Carburettors & Parts	51,560.88	42,864.39
	ECU	6151.12	4,964.65
	Scrap / other operating income	567.83	419.30
	Total	58,279.83	48,248.34

RISK MANAGEMENT

The Company has devised a suitable framework to identify and evaluate risks. Periodic assessments are carried out to identify risks and brief the management on the risks in advance to enable the Company to control the risk through a properly defined plan. The risks are classified as financial risks, operational risks, market risks and statutory compliance risks. The risks are evaluated based on previous experience, probability of occurrence, probability of non-deletion and its impact on business and are taken into account while preparing the annual business plan for the year. Insurable risks are covered by insurance policies to protect the Company interests. The Board is also periodically informed of the risks and the actions taken to manage them. The Company manages its risks by incurring prudent capital expenditure, by ensuring that customers underwrite the capacities created specifically for their requirements, by determining the prices of its products on a scientific s basis based on detailed studies, by prudent financial management, by localization to protect itself from exchange risks, constant R&D efforts and by spreading its markets and manufacturing facilities geographically. The committee assists the management in assessing the market risks, competitors risks, product obsolescence risk and devises strategies to overcome the same.

15. HUMAN RESOURCE DEVELOPMENT AND INDUSTRIAL RELATIONS

At UCAL, people are considered the Companys greatest asset. Hence fostering a positive employee experience and a high degree of engagement is critical to motivate and develop employees and managers to reach their highest potential. U-Rise, a transformational journey initiated by the Company during 2022-23 has gathered on momentum, bringing in several positive changes in employee engagement and performance with collaborative, inter-departmental teams amplifying internal through innovation, creativity, and increased productivity

The Human Resources (HR) department is driven by the guidelines:

To help employees realize their potential to develop, grow and achieve their purpose

To build the right culture and capabilities

To make the Company a great place to work for passionate, innovative people who wish to make a difference

To build a strong and capable people capital, structured Learning & Development Workshops, Skill - Building and Training Programmes, were conducted across locations seeding a culture of knowledge enhancement and continuous growth. High potential employees were trained under curated leadership programme at Premier

Institutes and Universities, to guide them towards greater responsibilities and to build the leadership pipeline.

The Company deepened its focus on Kaizen, fostering a culture of continuous improvement, with a mandatory requirement of 5 Kaizens per employee. Besides building a Kaizen Culture, the initiative instilled a competitive spirit among employees vying with each other to earn a reward for any one of the best three Kaizens from their plant.

To ensure better goal-alignment, vel le multi- review meetings were conducted under the ‘CEO - Connect initiative. Comprising daily, fortnightly and monthly sessions, these review meetings anchored by the CEO and senior management team members, were held across locations, departments and functions fostering a greater sense of transparency, accountability and performance measurement.

UCAL supports an inclusive, positive workplace environment, free from harassment of any nature. In line with this, the Company has institutionalized an Internal Complaints Committee (ICC) at all locations across India to consider and address sexual harassment complaints in accordance with the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. There were no incidents of sexual harassment reported during the year under review, in terms of the provisions of the Sexual Harassment of Women at Workplace (Prevention, and Redressal) Act,

2013.

The Company continues to maintain its record of good industrial relations without any interruption in work and has carried out restructuring process at different plants to ensure operating flexibility and competitiveness among the workforce to deliver maximum productivity at all plants

16. HEALTH, SAFETY AND ENVIRONMENT

UCAL is certified for the highest standards in environmental and occupational health and safety management systems.

The health and safety of employees are always accorded the highest priority. Annual medical check-ups and health care programmes for employees ensure prevention and detection of ailments for early remediation.

Comprehensive safety measures underpinned with a strict safety protocol is integral to the Company culture. Besides stringent safety rules and regulations, safety- awareness programmes are conducted throughout the year for employees emphasizing the importance of adhering to safe working practices.

In line with its sustainability-centred business model, UCAL is focused on the best practices in Environment care such as adherence to stringent pollution norms across its factories, prevention of resource depletion through water conservation and circular process systems, developing a green belt, waste management and the adoption of renewable energy for its operations. During the year under review, nearly 70% of the Companys power consumption for operations was met by its own captive wind turbines, in addition to Power Purchase Contracts with third-party renewable power suppliers for solar power and Natural Piped Gas.

17. INTERNAL CONTROL SYSTEM

The Company has an efficient internal control system commensurate with its size and nature of business to safeguard the assets of the Company and to ensure effective utilisation of resources. These controls ensure that transactions are completed on time and in an accurate manner and by following proper procedures and systems. The Company has external teams carrying out audit to strengthen the internal audit and risk management functions. The internal auditors cover a wide area of operations and this is being continuously reviewed by the Audit Committee. Internal audit is conducted on a quarterly basis by a team of internal auditors and the reports together with the action taken reports are reviewed by the Audit Committee periodically. The Board and Audit Committee ensure that the internal financial control system operates effectively and they regularly review the effectiveness of internal control system in order to ensure due and proper implementation and due compliance with applicable laws, accounting standards and regulatory norms. A system of management controls is also in place to ensure higher levels of efficiency and to keep the organisation competitive. All the critical functions of the Company i.e., Sourcing and Procurement, Manufacturing, Costing,

Finance, Dispatch and Sales are handled through Oracle fusion system which is well-integrated. Checks and controls have been built into the system to handle the transactions. Existing internal controls provide adequate assurance to the management for all the transactions covering operations, inventory, fixed assets, financial records and compliance to statutory requirements. The systems and controls are reviewed periodically to ensure their effectiveness.

18. OUTLOOK

The Company has drawn a strategic roadmap for financial year 2025-26 aligned to the upward -defined growth trajectory of its transformational journey by expanding its presence in both the domestic and global markets.

Leveraging on its strength as a market leader and manufacturer of repute in a wide range of automotive components, the Company will continue to expand its portfolio of products and explore opportunities in new markets and emerging segments in a dynamically evolving automotive and non-automotive landscape.

The Companys engineering expertise, multi-plant operations, wide product range and strong sectoral credentials serve as a buffer against regional disruptions and business vulnerabilities and provide the headroom to achieve its chartered growth plans.

19. CAUTIONARY STATEMENT

Certain Statements made in the Management Discussion and Analysis Report relating to the Companys objectives, projections, outlook, expectations, estimates and others may constitute ‘forward looking statements within the meaning of applicable laws and regulations. Actual results may differ from such expectations, projections and so on whether express or implied. Several factors could make a significant difference to the Companys operations. These include climatic conditions and macroeconomic conditions affecting demand and supply, government regulations and taxation, natural calamities and so on, over which the Company does not have any direct control.