Urja Global Ltd Management Discussions

<dhhead>MANAGEMENT DISCUSSION AND ANALYSIS REPORT</dhhead>

India continued to demonstrate resilience in FY 2024 25, registering an estimated real GDP growth of approximately 6.5%. Although INDIANECONOMICOVERVIEW growing major economies globally. Inflation remained well within the Reserve Bank of India’s (RBI) target band of 4% ? 2%. Retail this marks moderation from the 9.2% growth witnessed in the previous fiscal year, it affirms the country’s position as one of the fastest-this moderation, the RBI reduced the benchmark repo rate by 50 basis points in June 2025 to 5.50%, signaling a shift towards a more inflation eased to around 3.2 3.4% by the end of FY 2024 25, aided by stable food prices and effective monetary policy. Encouraged by accommodative stance.

Rocky Mountain Institute (RMI), India’s EV finance industry is likely to reach 3.7 lakh crore by 2030. The Indian automotive market is India accomplished a significant milestone, with the sale of one lakh electric vehicles (EVs) in FY25. According to NITI Aayog and the incentive scheme are aiding several auto makers to invest in EV segment. The industry is focusing on reducing emissions and integration expanding, driven by rising income levels, urbanization and increasing consumer purchasing power. Initiatives like Production linked of advanced technologies like connectivity and smart mobility solutions. beginning to ease, and public capital expenditure remaining strong, the macroeconomic environment provided a supportive backdrop FY 2024 25 was a year of consolidation and cautious optimism for the Indian economy. With inflation under control, interest rates for business recovery and long-term investment.

The Indian consumer goods sector demonstrated resilience and gradual growth despite macro-economic headwinds. The industry CONSUMER GOODS INDUSTRY IN INDIA growth. Notably, rural markets, which contribute over one-third of overall sales, led the recovery posting 8.4% volume growth, nearly recorded an 11% year-on-year increase in value sales in Q4 (January March 2025), comprising 5.6% price inflation and 5.1% volume four times faster than urban areas at 2.6%. in FY24. Despite challenges in urban consumption and competitive pressures, small and regional players posted strong performance, ITC reported that consumer spending on its FMCG products reached over 34,000 crore in FY25, up about 4.6% from 32,500 crore growing nearly 17.8% in value during Q4 2025, significantly faster than established players. urbanisation, and digital penetration. Continued focus on rural market development, innovation in value-driven offerings, and investment The consumer goods industry in India is expected to sustain its growth trajectory, backed by demographic dividends, rising incomes, in digital infrastructure will be critical to capturing incremental demand.

The Government of India continued its strong push toward self-reliance and industrial development during FY 2024 25 through targeted GOVERNMENTSUPPORTTOBOOSTDOMESTICMANUFACTURING expanded. The Production Linked Incentive (PLI) schemes, covering over 14 strategic sectors including electronics, EVs, solar modules, textiles, and specialty steel, gained further traction. As of March 2025, the government had approved investments exceeding 3.2 lakh policy initiatives aimed at boosting domestic manufacturing. Building on the vision of Atmanirbhar Bharat, several programs were Make in India 2.0, National Manufacturing Policy, and PM Gati Shakti focused on improving logistics efficiency, reducing compliance crore under various PLI schemes, with disbursements and production commitments accelerating year-on-year. Initiatives such as the employment, and position India as a resilient and globally competitive manufacturing hub. burdens, and streamlining infrastructure development. Collectively, these initiatives are expected to drive long-term investment, create THE Urja Global is one of India’s leading integrated renewable energy companies, engaged in the design, supply, installation, and maintenance BUSINESS across multiple verticals including solar PV modules, solar batteries, solar home lighting systems, electric two-wheelers, and energy- of solar energy solutions and electric mobility products. As part of its commitment to clean and sustainable energy, the Company operates efficient appliances.

The Company’s contemporary product portfolio in the domestic market comprises the following:

‘Urja’ and I-volt. Lithium IOB batteries, automotive batteries, inverter batteries, solar batteries and e rickshaw batteries under the brand names

Solar study lamps, LED lartern, Solar Panels, Solar Inverter Solar Home lighting,

E-rickshaws and E scooters. Urja Solar Atta Chakki, Solar Water Pumps, Solar Rooftop and solar system on grid/off grid.

The Company continued to strengthen its presence in both urban and rural markets, supported by a growing awareness of clean energy mobility segment, the Company continues to invest in the development and marketing of electric two-wheelers, targeting last-mile and favorable government policies under initiatives like PM-KUSUM, FAME-II, and the broader National Solar Mission. In the electric safety features, and digital connectivity contributed to increased market interest. connectivity and cost-effective transportation for semi-urban and rural regions. The launch of new EV models with improved battery life,

 

RECHARGEABLE The global rechargeable battery market witnessed significant momentum in FY 2024 25, driven by the accelerating global shift toward BATTERIES MARKET OUTLOOK 2024 and is projected to exceed USD 225 billion by 2030. Electric vehicles (EVs) remain the largest end-user segment, accounting for over clean energy, electric mobility, digitalization, and decarbonization. The market size was valued at approximately USD 128 135 billion in 60% of global lithium-ion battery demand. for energy storage systems (ESS) is rising globally, particularly in North America, Europe, and Asia-Pacific, as utilities and industries Electric vehicles (EVs) remain the largest end-user segment, accounting for over 60% of global lithium-ion battery demand. The demand transition to intermittent renewable energy sources such as solar and wind. energy future. Rechargeable batteries particularly lithium-ion variants have become central to this transformation, powering a wide Rechargeable batteries have emerged as one of the most critical enablers of the global transition towards a cleaner, more sustainable range of applications from electric vehicles and renewable energy storage systems to portable electronics and industrial automation. vehicle adoption, expansion of renewable energy infrastructure, and the proliferation of smart devices. Governments across the world are The global market for rechargeable batteries is experiencing a strong and sustained growth trajectory, underpinned by a surge in electric battery innovation and investment. Rechargeable batteries are expected to play an increasingly strategic role in global energy systems. promoting clean technologies through supportive policies, tax incentives, and regulatory mandates, creating a favorable environment for

 

SOLAR- RENEWABLEENERGYTARGET primarily by continued growth in solar photovoltaic (PV) installations. Solar energy continues to be the standout performer, accounting In 2023, global renewable energy capacity additions surged by nearly 10%, reaching approximately 350 GW a new record driven support.for more than two-thirds of total capacity additions due to declining technology costs, simplified permitting processes, and strong policy security. Countries like China are leading the way aiming for 1,200 GW of combined solar and wind capacity by 2030. India has Global solar energy targets are becoming increasingly ambitious as nations race to meet climate goals and ensure long-term energy governments enhance policy support and invest in technologies such as battery storage and grid modernization, solar energy is expected set a target of 500 GW of total renewable energy capacity by 2030, of which nearly 300 GW is expected to come from solar alone. As to remain the leading force in renewable capacity expansion well into the 2030s.

In fiscal year 2024 25, India crossed the significant milestone of selling over one million electric vehicles, with total EV registrations ELECTRICVEHICLESNEED electric vehicles were registered. Electric two-wheelers led the growth, with sales of around 1.15 million units, up 21.2%, representing for the year climbing to approximately 1.97 million units a robust 16.9% year-on-year increase over FY 2023 24, when 1.68 million electric passenger cars reached roughly 100,000 registrations, up 18.2%. more than half of total EVs. Passenger electric three-wheelers (E3W) saw sales of around 700,000 units, rising about 10 11%, while to electric mobility in response to policy incentives like PM E-DRIVE, growing consumer awareness, and expanding infrastructure support. India’s cumulative EV registrations by the end of FY 25 stood at approximately 6.166 million units, underlining the accelerating transition and the global push toward decarbonization. The transport sector is one of the largest contributors to greenhouse gas emissions, and The need for electric vehicles (EVs) has become increasingly urgent in the face of rising environmental concerns, urban air pollution, transitioning to electric mobility is crucial for countries like India to meet their climate commitments and improve public health. among them is the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, which has reduced the upfront The Indian government has taken proactive steps to accelerate EV adoption through a series of supportive policies and incentives. Key Cell (ACC) battery manufacturing and the expansion of EV charging infrastructure under the PM e-Bus Sewa and PM e-Drive programs cost of EVs through direct subsidies. Additionally, initiatives like the Production Linked Incentive (PLI) scheme for Advanced Chemistry are paving the way for a robust ecosystem.

The COVID-19 pandemic served as a powerful catalyst for the digitization of healthcare, accelerating the adoption of digital tools across DIGITIZATION OF HEALTHCARE digital platforms, embracing teleconsultations, e-pharmacies, electronic health records (EHRs), and remote patient monitoring. This the care continuum. In early 2020, as lockdowns and safety concerns limited in-person visits, hospitals and clinics rapidly shifted toward transformation was driven by three key enablers:

1. A dramatic rise in patient openness to digital health services,

2. Healthcare providers’ urgent need to digitize workflows for continuity of care, and

3. Regulatory flexibility that allowed faster integration of digital health into mainstream systems. a supplementary channel to becoming an integral pillar of healthcare delivery. This shift has not only improved accessibility and Digital health evolved from a supplemental service to a core component of care delivery. Digital health has transitioned from being Company continues to invest in digital infrastructure, partnerships, and innovation to remain at the forefront of this evolving landscape. convenience for patients but has also enhanced clinical efficiency, data-driven decision-making, and long-term cost optimization. The

Urja, continues to operate in a rapidly evolving market driven by India’s clean energy agenda and rising demand for sustainable OPPORTUNITIES AND THREATS and battery storage solutions. However, alongside these opportunities, there are several challenges and external threats that may impact technologies. The Company recognizes multiple growth opportunities that align with its core strengths in solar energy, electric mobility, future performance.

solar rooftop subsidies, which support broader adoption of clean energy solutions. We expect to benefit from the Government of India’s continued push for renewable energy, including initiatives like PM-KUSUM and expand in both grid-connected and off-grid markets. The increasing need for energy storage systems, particularly lithium-ion battery technology, presents an opportunity for us to us to tap into a high-potential sector and also our low-debt, asset-light model enables us to pursue expansion opportunities with With the growing shift toward electric vehicle (EV) adoption, our entry into EV scooters and lithium battery manufacturing positions flexibility and reduced financial burden.

and build stakeholder trust. We are mindful of market concerns around transparency and governance, and are actively working to strengthen internal controls driven competitors. Rapid technological advancements in energy and mobility sectors require us to stay innovative and avoid falling behind more R&D-BUSINESS Urja, remains cautiously optimistic, supported by India’s growing emphasis on renewable energy, electric mobility, and sustainable OUTLOOK favorable macroeconomic environment for the Company. As an MNRE-accredited channel partner, Urja, is well-positioned to capitalize development. The government’s continued push toward solar adoption, rural electrification, and clean transportation presents a on new project opportunities and expand its footprint across solar energy solutions. vehicle (EV) segments, aligning with the rising demand for energy storage systems and e-mobility solutions. Urja, remains committed During the year, the Company made strategic moves to diversify its offerings by entering into the lithium-ion battery and electric Continued investment in clean energy technologies and focus on execution excellence will be critical for sustaining momentum and to enhancing its operational capabilities, improving financial performance, and expanding its product base to unlock long-term value. substantial growth potential in the medium to long term. delivering consistent growth. While challenges persist, the Company’s strong positioning in India’s green energy ecosystem offers Urja, operates in a dynamic and highly competitive environment, where emerging technologies, evolving policy frameworks, and market RISKS AND CONCERNS maintain a first-mover advantage in the renewable energy and electric mobility sectors. volatility pose continuous challenges. The most foreseeable risk remains the Company’s ability to adapt swiftly to market shifts and ensuring sustainable operations. This framework is integrated into the Company’s operational processes and reviewed regularly to align Urja, follows a robust risk management framework designed to proactively identify, assess, and respond to emerging threats while with business goals and industry developments.

makers, and stakeholders to remain agile and competitive. A diversified presence across verticals and geographies supports long- Urja continuously monitors global trends in energy, electric vehicles, and sustainability, working closely with advisors, policy-term resilience.

audits, and progressive workplace policies. These initiatives are overseen by the Board and aim to ensure regulatory compliance The Company prioritizes a safe and healthy work environment through comprehensive safety systems, employee training, regular and operational excellence.

program. This ensures business continuity and nurtures future leadership from within. The Company have Succession plans in place for key leadership roles, supported by a strong talent acquisition and development up with rapid technological advancements. The Company consistently investing in R&D, innovation, and upgradation of its offerings to stay relevant and future ready to cope regulatory frameworks across operational regions. Advanced systems are in place to track and manage compliance requirements Urja has in-house compliance team, supported by local consultants and business leaders, ensures adherence to all relevant legal and effectively.

and regulations to comply with and that adequate Monitoring mechanisms are put in place to ensure compliance. Urja appoints The Company has invested in compliance systems and processes to ensure that all its functions and units are aware of the laws customer relationships. local business leaders and management teams who bring a strong understanding of the local operating environment and strong Urja, has established a robust internal control system commensurate with the scale, complexity, and nature of its operations. The objective INTERNAL CONTROL SYSTEMS of the internal control framework is to ensure the safeguarding of assets, accuracy and reliability in accounting records, compliance processes, and clear authorization protocols for procurement, sales, financial transactions, and asset management. on the adequacy and effectiveness of internal controls. The Audit Committee of the Company is regularly updated on audit findings, risk The Company has an internal audit function, conducted both in-house and through professional firms, to provide independent assurance recommendations, and monitors the internal control environment across business units. exposures, and the status of corrective actions. The Committee actively reviews audit observations, evaluates the implementation of operational, financial, strategic, and compliance-related risks, while ensuring the implementation of mitigation plans as part of ongoing Urja has a formal Risk Management Framework, governed by a designated Risk Management Committee. The framework identifies management practices. Periodic assessments are carried out to update risk registers and monitor emerging risks. reviewed and evaluated the internal financial controls and concluded that, as of March 31, 2025, the controls are adequate and operating Pursuant to Section 177 of the Companies Act, 2013 and Regulation 18 of SEBI (LODR) Regulations, 2015, the Audit Committee has effectively.

People power continues to be one of the key pillars of success at Urja. The Company employs a diverse and skilled workforce across its HUMANRESOURCES/INDUSTRIAL RELATIONSFRONT and operational excellence. Urja focuses on enhancing its people capabilities through structured training programs covering technical manufacturing units, corporate offices, and project locations, all of whom are united by a shared commitment to innovation, sustainability, acquisition and retention, ensuring that its workforce remains aligned with its vision of leadership in the renewable energy and electric skills, safety practices, leadership development, and digital proficiency. The Company continues to adopt a strategic approach to talent mobility sectors. year in augmenting the representation of diverse talent across its organisational structure. The total number of people employed at the The company maintains a focused commitment to promoting employee diversity and has made substantial progress throughout the fiscal end of financial year was 44.

During year 2024-25, Urja demonstrated resilient performance amid a dynamic business environment marked by evolving market COMPANY’SPERFORMANCEREVIEWS demands and technological advancements. substantial growth suggests improved sales performance and possibly increased demand for its renewable energy products and services. year-on-year. The company’s total consolidated revenue rose from 44.47 crore In FY 2024–25, Urja Global Limited reported a strongincreaseinrevenueonconsolidatedbasis in FY 2023 24 to 67.25 crore in FY 2024 25. This , growing by approximately 51% and incentives provided by both the Central and State governments for the solar energy sector are steadily strengthening, fostering Solar power in India has now become more cost-effective than electricity produced from diesel generators. Furthermore, the support accelerated growth and adoption across the country. improvement in operating profits and margins, especially in the March quarter, shows that the company made efforts to improve efficiency.Urja Global had a strong year in terms of revenue growth, reflecting good market performance or increased product demand. The due to higher input costs, depreciation, interest expenses, or tax outflows. However, the sharp decline in net profit and Q4 PAT highlights ongoing challenges in converting revenue into sustained earnings, possibly management and profitability remain key areas for improvement. In short, FY 2024 25 was a year of expansion in revenue but pressure on profits, showing that while growth opportunities exist, cost FINANCIAL During the year 2024-25 under review, the Company’s Net Sales stood at 5,032.86 Lakhs as compared to 4,332.84 Lakhs in the previous PERFORMANCE year. The Net Profit for the year was 144.12 Lakhs as against 177.92 Lakhs last year.

 

693.62 Lakhs (15.57%). While the total expenses increased to 4,939.36 Lakhs from 4,195.69 Lakhs last year, marking a rise of year showing a decrease of 19.39%.

 

 

(Rs. In Lakhs)

 

Particulars	For theyearended 31.03.2025	For theyearended 31.03.2024
Total Revenue	4939.36 5147.45	4195.69 4453.83
Total Expenses
NetIncome(I-II)	208.09	258.14

 

a rise of 531.96 Lakhs (12.47%). Lakhs (8.85%). Meanwhile, the Current Liabilities increased to 4,796.41 Lakhs as compared to 4,264.45 Lakhs last year, showing

 

 

(Rs. In Lakhs)

 

Particulars	For the year ended	For the year ended
	31.03.2025 5145.75	31.03.2024 4727.48
Current Assets	4796.41	4264.45
Current Liabilities

 

KEY FINANCIAL RATIOS

Particulars	FY 2024-25	FY 2023-24	Change
Trade Receivables Turnover Ratio	0.15	0.27	-44.44%
Inventory Turnover Ratio	3.01 -	2.02 -	49% -
Interest Coverage Ratio	1.07
Current Ratio	-	1.11 -	-3.60% -
Debt Equity Ratio	17.31	17.68	-2.09%
Operating Profit Margin (%)
Net Profit Margin (%)	2.69 2.86	3.33 4.13	-19.21% -30.75%
Return On Equity (%)

 

COMMENTARY The debtor turnover ratio decreased from 0.27 times in FY 2023-24 to 0.15 times in FY 2024-25. This change is primarily attributable TradeReceivablesTurnoverRatio- to a lower average outstanding balance in comparison to the previous year. InventoryTurnoverRatio 2024-25. This improvement in inventory turnover is mainly on account of lower average inventory levels. The inventory turnover ratio has witnessed an increase from 2.02 times in FY 2023- 24 to 3.01 times in FY decrease in current assets. The current ratio is a measure of a company’s ability to meet its short-term obligations using its current assets. Current Ratio – The current ratio has decreased from 1.11 times to 1.07 times, which has seen as negative change on account of a higher realisation, effective cost control & value engineering. Operating ProfitMargin(%) Operating profit margin for the year has decreased from 17.68% to 17.31%. This is primarily due to healthy operating margins. NetProfitRatio/Margin(%) The net profit margin has experienced an decrease from 4.13% to 2.86%, primarily attributable to nondecreased from 3.33% to 2.69%.ReturnonNetEquity/Net Worth (%) The decrease in profits has resulted in a notable degrade in the Return on Net Worth, which has CAUTIONARY Statements made in the Management Discussion and Analysis section regarding projections, estimates, and expectations have been STATEMENT of the Company or its Directors. Market data, industry trends, and product information referenced in this Report are derived from presented in good faith. However, actual results may differ materially due to a variety of unforeseen factors and risks beyond the control Consequently, this document is subject to the disclaimers, assumptions, qualifications, and risk factors detailed in the Management sources believed to be reliable, both published and unpublished, but their accuracy, completeness, and reliability cannot be guaranteed. Discussion and Analysis section of Urja Global Limited’s Annual Report for FY 2024-25.

	On behalf of the Board of Directors
		Urja Global Limited
	Sd/-	Sd/-
Place: New Delhi	Mohan Jagdish Agarwal	Yogesh Kumar Goyal
Date: 02.08.2025	Managing Director	Whole Time Director
	DIN: 07627568	DIN:01644763