ANNEXURE III
Your Directors have pleasure in presenting the management discussion and analysis report for the year ended on March 31, 2026.
1. GLOBAL ECONOMIC OVERVIEW:
The global economy remained resilient during 2025-26 despite a challenging operating environment characterised by geopolitical tensions, trade policy uncertainties, shifting supply chains, elevated fiscal pressures and volatility in commodity and energy markets. Global economic activity continued to expand, although the pace of growth remained moderate compared with historical averages.
According to the World Bank, global economic growth is projected to remain broadly stable, with growth estimated at around 2.6% in 2026 and expected to improve marginally thereafter. The global economic environment continues to be influenced by divergent monetary policies, changing trade relationships, geopolitical developments and uneven recovery across regions.
Inflationary pressures moderated in several major economies, supported by easing supply-chain constraints and stabilisation in certain commodity prices. However, energy-price volatility, geopolitical developments and disruptions to international trade continue to pose risks to the global inflation outlook. Central banks across major economies have therefore continued to maintain a calibrated approach towards monetary policy.
Emerging markets and developing economies continued to demonstrate relative resilience, supported by domestic consumption, infrastructure investment and improving manufacturing capabilities. Asia continued to remain an important contributor to global economic growth, with India maintaining a particularly strong position among major economies.
GLOBAL GROWTH OUTLOOK
RESILIENCE AMID GLOBAL UNCERTAINTIES
The global growth outlook remains cautiously optimistic but is subject to significant downside risks. Trade fragmentation, geopolitical tensions, energy-price volatility, supply-chain disruptions and tighter financial conditions could affect global investment and industrial activity.
At the same time, technological advancement, digitalisation, artificial intelligence, infrastructure development and supply-chain diversification are expected to create new opportunities for businesses and emerging economies.
The global steel industry continues to face an uneven demand environment. While steel consumption in developed economies remains relatively subdued, emerging economies, particularly India, continue to provide important growth opportunities.
2. INDIAN ECONOMY:
The Indian economy continued to demonstrate strong resilience and sustained growth momentum during FY 2025-26. Strong domestic consumption, infrastructure spending, manufacturing activity, digitalisation and continued policy support contributed to the expansion of economic activity.
The Governments continued focus on infrastructure development, logistics, manufacturing, urbanisation and capital expenditure has supported investment activity across key sectors. Private investment has also shown signs of strengthening, supported by improving corporate balance sheets, healthy credit growth and favourable domestic demand conditions.
According to the First Advance Estimates released by the National Statistical Office, Indias real GDP was estimated to grow by 7.4% during FY 2025-26, reflecting the strength of domestic economic activity. The Economic Survey 2025-26 also highlighted domestic demand, private consumption, capital formation, services and strengthening manufacturing activity as key contributors to economic growth.
GDP GROWTH
India continues to remain one of the fastest-growing major economies globally. The countrys economic performance has been supported by a combination of structural reforms, rising formalisation, digital transformation, infrastructure investment, expanding manufacturing capabilities and a large domestic consumer base.
The Indian economy has also benefited from improving supply-chain diversification, increasing integration with global manufacturing networks and the Governments continued emphasis on strengthening domestic production capabilities.
INVESTMENT LANDSCAPE & OUTLOOK
Investment activity remained an important driver of Indias economic growth during FY 2025-26. Public capital expenditure continued to support infrastructure development, while improving business confidence and corporate balance sheets provided a favourable environment for private-sector investment.
Key economic indicators, including GST collections, bank credit, infrastructure activity, power consumption, automobile sales and manufacturing activity, continued to reflect the underlying strength of domestic demand. Indias expanding infrastructure network, growing manufacturing base and increasing focus on self-reliance are expected to support investment opportunities across sectors, including steel, engineering, construction, automotive and capital goods.
THE ROAD AHEAD: ECONOMIC PROJECTIONS
The medium-term outlook for the Indian economy remains positive. Continued investment in infrastructure, manufacturing and digital capabilities, together with improving domestic consumption, is expected to support sustained economic expansion.
Key growth drivers are expected to include:
Continued government-led infrastructure and capital expenditure; Growth in private-sector capital expenditure; Recovery and expansion of rural and urban consumption; Increasing manufacturing activity and supply-chain diversification; Expansion of digital infrastructure and technology adoption; Continued structural and policy reforms; and Improving integration with global manufacturing and trade networks.
However, the economic outlook remains subject to risks arising from geopolitical developments, global trade tensions, commodity-price fluctuations, energy-price volatility, climate-related events and fluctuations in global financial conditions.
3.INDUSTRY OVERVIEW:
INDIAN STEEL INDUSTRY
The Indian steel industry continued to demonstrate strong growth during FY 2025-26, supported by robust domestic demand, infrastructure development, manufacturing activity and continued capacity expansion.
India retained its position as the worlds second-largest crude steel producer. According to the Ministry of Steel, Indias crude steelmaking capacity exceeded 220 million tonnes during FY 2025-26, reflecting continued investment in capacity expansion.
During FY 2025-26, total finished steel consumption in India increased to approximately 164.19 million tonnes, representing growth of around 7.9% over the previous year. The increase reflects sustained demand from infrastructure, construction, automotive, engineering, manufacturing and other downstream sectors.
FINISHED STEEL PRODUCTION ALSO CONTINUED TO EXPAND. MINISTRY OF STEEL DATA INDICATES THAT FINISHED STEEL PRODUCTION REACHED APPROXIMATELY 161.70 MILLION TONNES IN FY 2025-26, COMPARED WITH 146.69 MILLION TONNES IN FY 2024-25.
The sector benefited from the Governments continued emphasis on infrastructure development, transportation networks, urbanisation, housing, manufacturing and domestic value addition. The National Steel Policy 2017 continues to provide a long-term framework for expanding domestic steel capacity and production, with a stated objective of reaching 300 million tonnes of crude steel capacity by 2030-31.
DEMAND DRIVERS
Domestic steel demand continues to be supported by several structural factors, including:
Government expenditure on roads, railways, ports, airports and other infrastructure; Expansion of the construction and real-estate sectors; Growth in automotive and engineering industries; Increasing manufacturing activity; Urbanisation and housing development; Expansion of renewable-energy and power infrastructure; Growth in capital goods and industrial equipment; and Increasing domestic manufacturing and supply-chain localisation.
The continued expansion of Indias infrastructure and manufacturing ecosystem is expected to remain a key driver of steel consumption over the medium to long term.
CAPACITY EXPANSION AND INVESTMENT
The Indian steel industry continued to witness significant investment in capacity expansion, modernisation, technology upgrades and downstream capabilities during FY 2025-26.
Indias crude steel capacity increased to more than 220 million tonnes during the year, while the industry remains aligned with the long-term objective of achieving 300 million tonnes of capacity by 2030-31.
Investment in technology, energy efficiency, quality improvement and value-added steel products is expected to become increasingly important as Indian steel producers seek to enhance competitiveness and respond to evolving customer requirements.
GLOBAL STEEL ENVIRONMENT
The global steel industry continued to face a challenging environment during FY 2025-26 due to uneven demand, excess capacity in certain markets, trade restrictions, geopolitical tensions and fluctuations in raw-material and energy prices.
UNISON METALS LIMITED
At the same time, Indias steel sector remained comparatively resilient because of the countrys strong domestic demand. During April-December 2025, Indias finished steel production increased by approximately 10.5% year-on-year, while finished steel consumption increased by approximately 7.0%. Finished steel exports also increased during the period, while imports declined significantly.
This trend highlights the increasing importance of domestic consumption and Indias growing position in the global steel value chain.
SUSTAINABILITY AND GREEN STEEL
Sustainability is increasingly becoming an important consideration for the Indian steel industry. The sector is progressively focusing on energy efficiency, reduction of carbon emissions, recycling, use of renewable energy and adoption of cleaner technologies.
The transition towards low-carbon and green steel is expected to create both challenges and opportunities for steel manufacturers. Companies with efficient manufacturing processes, responsible resource utilisation and the ability to adapt to evolving environmental standards are expected to be better positioned for long-term competitiveness.
LOOKING AHEAD
The outlook for the Indian steel industry remains positive, supported by strong domestic demand, infrastructure development, urbanisation, manufacturing growth and continued investment in steel capacity.
Indias relatively low per-capita steel consumption compared with developed economies, combined with its expanding infrastructure and industrial base, provides significant headroom for long-term growth.
The Governments policy initiatives, including the National Steel Policy, infrastructure programmes, domestic manufacturing initiatives and measures promoting specialty steel and green steel, are expected to further strengthen the industrys competitive position.
For downstream and value-added steel manufacturers, opportunities are expected to arise from increasing demand for quality products, customised solutions, improved processing capabilities and specialised steel applications.
At the same time, the industry will need to navigate challenges relating to raw-material prices, energy costs, logistics, global trade policies, competition, steel-price volatility and environmental regulations.
The Company remains committed to maintaining operational efficiency, strengthening customer relationships, improving product quality, exercising prudent cost management and responding proactively to changing market conditions.
UNISON METALS LIMITED
The management believes that the long-term fundamentals of the Indian steel industry remain strong and that the Companys experience, capabilities and customer-focused approach will enable it to participate effectively in the opportunities arising from the continued growth of the Indian steel sector.
4.OPPORTUNITIES & THREATS:
Opportunities
The Indian steel industry continues to offer significant growth opportunities, supported by sustained infrastructure development, increasing urbanisation, expansion of manufacturing activities, growth in the automotive and engineering sectors, and rising domestic steel consumption.
The Company believes that geographical expansion into new markets and strengthening its presence across various states of India will provide opportunities for business growth and diversification of its customer base. The Company intends to explore opportunities in markets where it currently has limited or no presence and to strengthen its distribution and customer network.
The increasing demand for value-added and quality steel products, coupled with the Governments continued focus on infrastructure development and domestic manufacturing, provides opportunities for the Company to expand its product offerings and customer base.
The Company will continue to focus on operational efficiency, strengthening customer relationships, expanding its market reach and identifying new business opportunities to achieve sustainable growth.
Threats
The Companys business and profitability may be affected by various external and industry-specific factors, including:
Volatility in the prices of raw materials and other inputs, which may adversely affect margins; Increase in transportation, logistics, energy and other operating costs; Fluctuations in steel prices and changes in domestic and global demand; Changes in Government policies, regulations, taxation and trade policies; Intense competition from existing and new market participants; Geopolitical developments, global economic uncertainties and disruptions in the supply chain; Natural calamities, climatic events and other force majeure circumstances; Customer dissatisfaction arising from product quality, delivery or service-related issues; Delayed payments or inability of customers to meet their financial obligations; and Changes in environmental regulations and increasing compliance requirements.
The Company seeks to mitigate these risks through prudent cost management, maintaining appropriate customer and supplier relationships, monitoring market conditions, improving operational efficiency and maintaining a disciplined approach towards credit and working capital management.
5. SEGMENT-WISE PERFORMANCE:
The Companys main business activity is trading and Manufacturing of Steel Patta, Ceramics Products and Sodium Silicate.
6. OUTLOOK:
The Company continues to explore the possibilities of expansion and will make the necessary investments when attractive opportunities arise.
7. RISK & CONCERNS:
The Company has in place a mechanism to identify, assess, monitor and mitigate various risks to key business objectives. Key business risks and mitigation strategy are highlighted below:
Business Risk
To mitigate the risk of high dependence on any one business for revenues, the Company has adopted a strategy of launching new products/services, globalizing its operations and diversifying into different business segments. The strategy has yielded good results and the Company therefore has a diversified stream of revenues. To address the risk of dependence on a few large clients, the Company has also actively sought to diversify its client base.
Legal & Statutory Risk
The Company has no material litigation in relation to contractual obligations pending against it in any court in India or abroad. The Company Secretary, compliance and legal functions advice the Company on issues relating to compliance with law and to pre-empt violations of the same. The Company Secretary submits a quarterly report to the Board on the Companys initiatives to comply with the laws of various jurisdictions. The Company also seeks independent legal advice wherever necessary.
Human Resource Attrition Risk
Union Metals Limited key assets are its employees. In a highly competitive market, it is a challenge to address the attrition. Unison Metals Limited continues to accord top priority to manage employee attrition by talent retention efforts and offering a competitive salary and growth path for talented individuals.
Macroeconomic Risks
Companys business may be affected by changes in Government policy, taxation, intensifying competition and uncertainty around economic developments in Indian and overseas market in which the Company operates.
Mitigation Strategy
Mitigation StrategyThe Company has well defined conservative internal norms for its Business. The Company ensures a favourable debt/equity ratio, moderate liquidity, strong clientele with timely payment track record, appropriate due diligence before bidding and focus on expanding presence in newer markets to minimize the impact in adverse conditions. The Company has geographically and operationally diversified into multiple countries and business segments thereby reducing its dependency on one country or market.
Operational Risks
Operational RisksThe Companys operations and financial condition could be adversely affected if it is unable to successfully implement its growth strategies. Competition from others, or changes in the products or processes of the Companys customers, should reduce market prices and demanding for the Companys products, thereby reducing its cash flow and profitability. Product liabilities claims may adversely affect the Companys operations and finance.
Others
OthersThe Company is exposed to risks & fluctuations of foreign exchange rates, raw-material prices and overseas investments exposures.
8.INTERNAL CONTROL SYSTEMS & THEIR ADEQUACY:
The Audit Committee periodically reviews the internal controls systems and reports their observations to the Board of Directors.
9. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:
During the year, the Company has generated turnover of Rs. 23,671.11/- Lakhs as compared to Rs. 16,682.42/- Lakhs in the previous year. The net profit before exceptional items and taxes is Rs. 313.02/- Lakhs as compared to Rs. 190.14/- Lakhs in the previous year. The Company has made net profit after taxes of Rs. 181.43/- Lakhs as compared to Rs. 135.72/- Lakhs of the previous year for the year ended 31st March, 2025.
10. MATERIAL DEVELOPMENTS IN HR / INDUSTRIAL RELATION / NUMBER OF PERSON EMPLOYED:
Our Company believes that the human capital is key to bring in progress. The Company believes in maintaining cordial relation with its employees, which is one of the key pillars of the Companys business. The Companys HR policies and practices are built on core values of Integrity, Passion, Speed, and Commitment. The Companys focus is on recruitment of good talent and retention of the talent pool. The Company is hopeful and confident of achieving the same to be able to deliver results and value for our shareholders. As on 31st March, 2026, the total employees on the Companys rolls stood at 75.
The Company continues to run an in-house training programmer held at regular intervals and aimed at updating their knowledge about issues.
11. ACCOUNTING POLICIES:
The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year. The financial statements have been prepared under the historical cost convention on an accrual basis. The management accepts responsibility for the integrity and objectivity of the financial statements, as well as for the various estimates and judgment used therein.
12. DISCLOSURE OF ACCOUNTING TREATMENT IN PREPARATION OF FINANCIAL STATEMENT:
The Company has followed all relevant Accounting Standards laid down by the Institute of Chartered Accountants of India (ICAI) while preparing Financial Statements.
| 2025-26 | 2024-25 | Changes | Reason | |
| 1. Current Ratio | 1.90 | 1.16 | 63.83% | Change in current ratio is due to addition in fixed asset which is funded by net owned fund. |
| 2. Total Debt Equity Ratio | 0.56 | 1.39 | -59.45% | Substantial repayment of long-term debt obligations during the year and accretion of profits to retained earnings, reducing financial leverage. |
| 3. Debt Service Coverage | 1.62 | 0.69 | 135.03% | Sharply enhanced operational cash flows (EBITDA) available to service debt obligations, combined with lower annual debt servicing costs due to principal repayment. |
| 4. Return on Equity (%) | 4.65 | 6.60 | -29.60% | During the financial year under consideration there was high volatility in raw material prices in the industry which was not converted in equal margins in the revenue because of uneven demands. Due to the same the net profit margins and returns have decreased which has affected the |
| 5. Net Capital Turnover Ratio (in days) | 52 | 26 | 99.96% | companys profitability. Companys working capital management is more efficient and aim to increase the number of turns |
| 6. Return on Capital Employed (%) | 6.20 | 8.69 | -28.70% | Increase in total Capital Employed (due to reduced debt liabilities and increased net worth) that outpaced the growth of Earnings Before Interest and Taxes (EBIT). |
| 7. Return on Investment (%) | -1.25 | 1.82 | -168.69% | Increase in investment capital employed outpaced the growth in profit, resulting in a decline in Return on Investment |
14. DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF:
| Sr. No. Particulars | 2025-26 | 2024-25 | Changes | Reason |
| 1. Returns on Net Worth (%) | 6.20 | 8.69 | -28.70% | Increase in total Capital Employed (due to reduced debt liabilities and increased net worth) that outpaced the growth of Earnings Before Interest and Taxes (EBIT). |
14. DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF:
| Sr. No. Particulars | 2025-26 | 2024-25 | Changes | Reason |
| 1. Return on Net Worth (%) | 6.20 | 8.69 | -28.70% | Increase in total Capital Employed (due to reduced debt liabilities and increased net worth) that outpaced the growth of Earnings Before Interest and Taxes (EBIT). |
15. CAUTIONERY STATEMENT:
Statements in this report on Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied.
| PLACE: AHMEDABAD DATE: 04.09.2026 |
| By Order of the Board For, UNISON METALS LIMITED |
| Sd/- |
| Sd/- |
| Maheshbhai Changrani Wholetime Director DIN: 00153615 |
| Rashi Tirth Mehta Managing Director DIN: 10697866 |
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