Valiant Communications Ltd Management Discussions

Overview

The financial statements have been prepared in compliance with the requirements of the Companies Act, 2013 and the Indian Accounting Standards (Ind AS) issued by the Ministry of Corporate Affairs (MCA) notified under the Companies (Indian Accounting Standards) Rules, 2015. The management accepts responsibility for the integrity and objectivity of these financial statements. The estimates and judgments relating to the financial statements have been made on a prudent and reasonable basis, in order that the financial statements reflect in a true and fair manner the form and substance of transaction and reasonably present our Companys state-of-affairsand profits for theyear.

Industrial Structure and Development

Our Valiant Communications Limited designs and manufactures communication, transmission, protection, synchronization, and data storage solutions · including NAS (Network-Attached Storage) and SAN (Storage Area Network) Data Storage Servers with multiple layers of cybersecurity. The Company has also designed specialized cybersecurity equipment for a wide range of critical infrastructure sectors: Power Sector Infrastructure (Sub-stations, SCADA), Utilities (Water, Oil & Gas, Renewable Energy), Railways, Airport Communication Networks, Corporate Networks, Financial Institutions, and Defence Networks.

FY 2025-26 was a landmark year for the Company. Against the backdrop of accelerating global demand for secure, indigenous hardware solutions, Valiants multi-vertical product portfolio · spanning smart grid, synchronization, data storage, and cybersecurity · found increasing resonance with customers across domesticand international markets.

We whole-heartedly applaud the policy and the exceptional work by the Government of India on implementation of Aatmanirbhar Bharat, which is pathbreaking. This policy has helped our Company grow vastly. Our Company is in its best position since its inception to benefit from the policies of the Government of India - especially in light of the companys continued innovation, technology investments and development of state-of-the-art product portfolio and solutions, for the domesticand international markets.

Valiant has continued to innovate and invest its resources in core product technologies and the development of real and tangible hardware products, that are essential for and required and used by various critical infrastructure sectors. Our Company is starting to realize the immense benefits from the aforesaid investments that it has continued to make overinthatarea over the pastyears.

Macro-industryContext

The operating environment during FY 2025-2026 was shaped by several structural tailwinds:

• India Grid Modernization: The India grid modernization market, valued at USD 1.51 billion in

2025, is projected to grow at a CAGR of 19.78% through 2034 to reach USD 7.65 billion, driven by renewable energy integration, rising electricity demand, and government-led smart metering and distribution automation programs. Communication and protection hardware · the segment in which Valiant primarily operates · accounted for approximately 55% of this market in 2025.

• India Cybersecurity: Indias cybersecurity market is one of the fastest-growing globally. Estimates place the market at USD 5.56-11.3 billion in 2025 and project it to grow at CAGRs of 14.5-18% through 2030-2031, driven by the Digital Personal Data Protection Act (DPDPA), rising ransomware threats, mandatory Critical Information Infrastructure (CII) protection, and government initiatives including Cyber Surakshit Bharat. Hardware leads the segment with approximately 60-69% revenue share. Valiants on-premises hardware security solutions are well-positioned within this growth area.

• AI Data Center Infrastructure: Indias data center market, valued at USD 10 billion in 2025, is projected to more than double to USD 22 billion by 2030. Installed capacity is expected to reach 1.7-2.0 GW by

2026, backed by nearly USD 30 billion in investments. The Union Budget 2026-2027 introduced significant measures to establish India as a global AI data hub, with tax incentives and policy support for data center infrastructure · a direct opportunity for Valiants NAS/SAN storage, synchronization, grid reliability, and data diode solutions.

• Defence Electronics: Indias defence production crossed USD 18 billion in December 2025. The Ministry of Defence signed capital procurement contracts worth USD 21.9 billion in FY 2025-2026 (through December). In FY 2025-2026, 1,11,544.83 crore · approximately three-fourths of the modernisation budget · was directed toward domestic procurement, a direct beneficiary of the Aatmanirbhar Bharat framework. The Positive Indigenisation List (PIL) mandates domestic sourcing of specified products, opening new avenues for indigenous manufacturers like Valiant.

• Smart Grid & Power Line Communication: The global power line communication market, valued at USD 14.82 billion in 2026, is expected to grow to USD 20.44 billion by 2033 at a 5.5% CAGR. The India Smart Grid Market is growing at a robust CAGR of 33.01% (2023- 2028), driven by RDSS (Revamped Distribution Sector Scheme) and government-mandated smart metering rollouts. Valiants communication, synchronization, and protection solutions for digital substations are directly aligned with these programs.

Note: Market data sourced from IMARC Group, Mordor Intelligence, Grand View Research, Markets and Markets, Knowledge Sourcing, and IBEF. Figures are approximate and reflect range of estimates available in the public domain as of the date of preparation of this report.

Government Policy and Regulatory Environment

The Government of Indias sustained implementation of AatmanirbharBharat, Make in India, Digital India, and the PLA (Production Linked Assessment) Policy continues to provide meaningful structuraltailwinds for Valiant. The Company, as an indigenous manufacturer of communications, transmission, synchronization, MPLS routing, data storage servers and cybersecurity equipment, is among the direct beneficiaries of these nation-building initiatives.

Significant policy developments during FY 2025-2026 that augment the Companys opportunity landscape include:

• Union Budget 2026-2027 provisions for AI Data Centers: The Budget laid a strong foundation for AI Data Center growth in India through proposed policy support, investment incentives, and infrastructure initiatives aimed at positioning India as a global AI hub · directly increasing demand for Valiants data storage and grid-reliability solutions.

• Mandatory CII Data Localization: All Critical Information Infrastructure (CII) entities in India have been directed to install captive, on-premises data storage servers within India. This mandate creates a scalable, recurring domestic market for Valiants Made-in-India NAS and SAN Data Storage Serverswith multi-layer cyber security.

• Digital Personal Data Protection Act, 2023 (DPDPA): Imposes stringent data governance obligations including steep penalties for non-compliance, accelerating organizational spending on encryption, monitoring, and secure storage infrastructure.

• Defence Modernisation: The enhancement of domestic defence procurement, Positive Indigenisation List (411 items), and the ADITI scheme reinforce demand for indigenous defence-grade communication, synchronization, and cyber security solutions.

Business Operation

During FY 2025-2026, the Company made significant operational and commercial progress across all its business verticals. As communicated in the quarterly investor presentations, the Company built on its technology leadership and strengthened its domestic and international customer relationships.

Business Verticals

A. Power Utilities and Smart Grid Solutions

Valiant providesadvanced communication, transmission, protection, and synchronization products for modern digital substations and Smart Grid infrastructure. Products include systems for IEEE C37.94 optical fibre substation protection, Phasor Measurement Units (PMUs), Grid Islanding solutions, and Wide Area MonitoringSystems(WAMS).

Key commercial highlights during FY2025-2026:

• The Company received a rate-contract purchase order from BHEL for its indigenously designed and manufactured Phasor Measurement Unit (PMU). PMUs are critical to Grid Automation, Grid Islanding, and Load Management. Globally, there are very few manufacturers of PMUs; the VCL PMU is an import substitute, helping India reduce dependence on foreign critical grid hardware.

• Orders were received and supplies executed for Hong Kong Electric Co. Ltd., Kenya Electricity Transmission Company, ESO EAD Bulgaria, and Uniper SE (German multinationalenergy company).

• Continued marketing of the Grid Islanding solution · gaining further global relevance in the context of country-wide grid blackouts in Spain and Portugal, which demonstrated the urgent need for grid resilience infrastructure of the kind Valiant offers.

• Orders received from EDELAP SA Argentina (electricity distribution), ENDE Bolivia (national electricity company), and Light Energia S.A. Brazil (hydroelectric powergeneration).

• Forthcoming SEB opportunities for the Companys power utility products across Punjab, Karnataka, Maharashtra, Tamil Nadu, Kerala, Telangana, Gujarat, Assam, and Uttar Pradesh are valued in excess of Rs. 136 crores and have continued to expand.

B. IT/OT Infrastructure, Data Storage and MPLS Networking

This vertical encompasses Valiants NAS/SAN Data Storage Server solutions, EMP-protected data storage, Data Diodes, and MPLS Routers · a high-growth opportunity domain driven by AI infrastructure investments, data localization mandates, and OT security requirements.

Key commercial highlightsduring FY 2025-2026:

• Received and supplied orders for NAS/SAN data storage products to Corscale Data Centres (USA), addressing the rapidly growing AI data center infrastructure segment.

• VCL MPLS Routers with encryption received their first power utility network orders and were successfully deployed · a breakthrough positioning Valiant in the converging utility-IT/OT communicationsmarket.

• The VCL-9000-EMP, an environmentally hardened data storage system engineered to protect data from Intentional Electromagnetic Pulse (IEMP) and HEMP attacks, is being readied for active marketing to Defence, BFSI, and Critical Infrastructure sectors.

• Data Diode solutions · enabling secure, hardware- enforced one-way data transfer between isolated networks · are gaining traction with CII sectors as a complementary layerto NAS/SAN deployments.

• Breakthrough NAS/SAN orders for utility applications are expected in the coming quarters, supported by the Union Budget 2026-2027 AI data center policies and DPDPA-driven data localization requirements.

C. Grid Synchronization, Timing and Frequency Solutions

Valiants synchronization portfolio encompasses GPS/ GNSS/NavIC NTP Time Servers, IEEE 1588v2 PTP Grandmaster Clocks, PTP Slaves, PTP Switches, PRP (REDBOX) Switches, and Primary Reference Clocks (ITU-T G.811). During FY 2025-2026, the addition of NavIC and GPS anti-jamming / anti-spoofing features to the entire synchronization product range materially enhanced the portfolios differentiation, particularly for Indian critical infrastructure, defence, and bankingapplications.

Key commercial highlights:

• Supplied synchronization products to Space Norway AS, Space One Co. Ltd. (Japan), Turkmenergo (Turkmenistan), DTV Network, and the U.S. Armed Forces for satellite and defence synchronization requirements.

• IS4S (engineering and management solutions for government and military customers), GFZ Helmholtz Centre (Germany), Nansen Environmental and

Remote Sensing Centre (NERSC, Norway), and Oak Ridge National Laboratory (USA) received synchronization andtiming solutions.

• SEC Datacom Sweden ordered synchronization products, reflecting growing demand in European telecom/ITinfrastructure.

• Supplied synchronization equipment to Data Centres in the USA · validating Valiants entry into AI / hyperscale data center timing infrastructure.

• Supplied products to Banedanmark (Rail Net Denmark), demonstrating applicability of VCL synchronization solutions in European rail transport networks.

D. CybersecuritySolutionsforCriticalInfrastructure

Valiants cybersecurity suite · comprising real-time ransomware and cyber-attack detection systems with audio-visual alarms, Automatic Network Isolation (Kill Switch) equipment, and network reliability and failover solutions · continued to gain traction with government, defence, and critical infrastructure customers.

Keycommercial highlights:

• Successful completion of testing and trials of MPLS Routers with encryption for utility and defence network applications. Orders received and executed for power utility networks.

• Supply of cyber security equipment to the Quebec Ministry of Cybersecurity and Digital (Canada) · a significant international government reference.

• Supply to CACI International (USA) for IT infrastructure modernization applications.

• Continued deployments across Power, Oil & Gas, and critical infrastructure in India under the Make in Indiaframework.

E. AI Infrastructureand Emerging Opportunities

The Companys core product lines · grid reliability, synchronization, secure data storage, and cybersecurity · are foundational enablers of AI data centers and hyperscale computing infrastructure.

The world is entering an era where compute is becoming a strategic driver of economic and technological leadership. Valiants solutions address both the energy reliability requirements (smart grid, Grid Islanding, PMUs, synchronization) and the data infrastructure requirements (NAS/SAN storage, Data Diodes, MPLS Routers) ofthis new era.

Being an indigenous manufacturer, Valiant is apparently a beneficiary of all business opportunities that are notably arising in the Indian Public Sector out of the Make in India and Aatmanirbhar Bharat initiatives of our Honble Prime Minister of India.

Our Company is focused on providing a mix of products, advance technologies and services for domestic and international market. Various initiatives taken by the Government of India, under the leadership ofour Honble Prime Minister, such as “AatamnirbharBharat", "Make in India", “Digital India" and “PMA Policy", the Indian business scenario is vibrant and promising. All the initiatives taken by the Government of India are helping domestic indigenous manufacturers of electronics, telecom, communications, transmission, synchronization and cybersecurity equipmentin India.

Various products of our Company are approved and used by major corporations such as PGCIL (Power Grid), most State Electricity Boards (SEBs) in India, various National Electricity Companies in various countries, defence organizations (including Lockheed Martin and Northrop Grumman), financial institutions, and critical infrastructure industries, worldwide.

Being the only Indian manufacturer for various products in select domains, our Company has a distinctive advantage over its multi-national competitors. All the initiatives taken by the Government of India are helping our Company (being a manufacturer of communications, transmission, synchronization, wide area grid monitoring, data storage servers and cybersecurity equipment) to capitalize its position in India and internationally.

For the global market, our Company continues to expand its customer base, footprint, distributor and re-seller relationships, and participate in exhibitions to provide

the necessary exposure to our Companys products and technologies.

Opportunities Domestic Opportunities

The domestic opportunity pipeline has grown substantially during FY 2025-2026. The Companys identified opportunity set · encompassing the Gross Order Book has grown significantly, reflecting the improving commercial momentum acrossall verticals.

Key domestic opportunity drivers for FY 2025-2026 and beyond include:

• Smart Grid and RDSS: Government-mandated smart metering and distribution automation under the Revamped Distribution SectorScheme (RDSS).

• Mandatory Data Localization: CII directive requiring on-premises, Made-in-India data storage solutions · a scalable recurring market for VCL NAS/SAN products.

• Defence Indigenization: Positive Indigenisation List and defence modernisation budget creating procurement opportunities for indigenous communication, synchronization, and cyber security hardware.

• AI Data Center Build-out: Union Budget 2026-2027 measures positioning India as a global AI hub, driving demand for synchronized, secure, and reliable data infrastructure.

• BFSI Sector: Regulatory requirements under RBI frameworks and DPDPA driving investment in secure, on-premises timing, networking, and storage solutions.

International Opportunities

The Company continued to diversify and deepen its international footprint during FY 2025-2026. Active marketing initiatives were undertaken across North and South America, Europe (France, UK, Bulgaria, Serbia, Latvia, Romania, Baltic states), Asia (Philippines, Vietnam, Indonesia, Australia, Japan, South Korea), and the Middle East.

Reference end-customers served during FY 2025-2026 include organizations across power utilities, aerospace, defence, government cybersecurity, data centers, and satellite applications in the USA, Canada, Norway, Denmark, Germany, France, Japan, Indonesia, Bolivia, Argentina, Brazil, Kenya, and Hong Kong, among others.

The global convergence of AI infrastructure investment, power grid modernization, and critical infrastructure cyber security creates a multi-billion-dollar international opportunity for Valiants technology-differentiated, Made-in-India products.

New product development and technological innovations are Valiants assets. With the introduction of new products, designs, solutions and applications, our Company looks forward to growth in salesand profits.

New Productsand Technologies

Our Companys commitment to continuous innovation remained central to its strategy during FY 2025-26. Several significant product and technology milestones wereachieved:

• NavIC Integration: GPS+ NavIC (IRNSS) capability was added to Valiants entire Synchronization product portfolio, providing superior accuracy, availability, and national security resilience over GPS-only solutions. NavIC adds a sovereign layer of redundancy vitalforcritical infrastructureand defence.

• GPS Anti-Jamming and Anti-Spoofing: This capability, added to the full synchronization product range, addresses a critical gap in banking and critical infrastructure where GPS jamming · increasingly available through low-cost commercial devices · poses a severe risk to timing-dependent systems.

• VCL PMU (Phasor Measurement Unit): The indigenously designed PMU, has actively begun commercial deployed during FY 2025-2026, and is a key import substitute for a globally scarce product critical to Grid Automation, Grid Islanding, and WAMS.

• Grid Islanding Solution: Commercially active globally, this solution prevents destabilization of power distribution networks by isolating problematic feeders. The grid blackouts in Spain and Portugal in 2025 significantly elevated global market awareness ofthissolution.

• VCL NAS/SAN with Quantum-Safe Encryption: Continued enhancement of the NAS/SAN platform with Quantum-Safe authentication, Network Isolation, Data Diode-based Vaulted Storage, and EMP protection · addressing future cybersecurity threatsproactively.

VCL NAS/SAN Data Storage Servers are offered with multiple layers of cybersecurity. These solutions include:

• With Network Isolation equipment,

• With Quantum-Safe Encryption,

• With Vaulted DataStoragethrough Data Diode,

• With EMP (electromagnetic pulse) data storage protection.

These technologies also hold good promise for future growth ofthe company.

VCL Data Diode - Secure One-Way Data Transmission Solution:

VCL has added Data Diode devices as another layer of cyber-security to its product portfolio. These ensure secure, one-way data transfer between segmented networks, such as between the NAS Server and a Vaulted (Secured and Physically Isolated) NAS Server. The VCL Data Diode maintains physical and electrical separation between the source and destination networks. This equipment is by design eliminates the exposure of the receiving system to external entry points, preventing intruders and malicious elements from infiltrating the receiving network.

The VCL Data Diode, used together with a VCL Vaulted (Physically Isolated) NAS/SAN Servers mitigates the possibility of the occurrence of potentially devastating losses due to data theft, data destruction, data tampering, or human error. The most important application includes physical isolation of critical data. VCL Data Diodes helps to maintain a clear, physical separation between a critical network segment and other non-critical network segments of an organization, or between the critical data stored in a Vaulted (Physically Isolated) NAS/SAN and the Operational NAS/SAN, thereby enhancing overall network security and reducing the risk of cross-contamination of data.

Future Prospects

The Company is clearly focused on the design, development, and commercialization of communication, transmission, synchronization, network reliability, data storage, and cybersecurity products for national and international markets. The sustained introduction of new technologies and products, combined with an expanding global marketing network, is expected to drive meaningful revenue growth.

Breakthrough orders are expected in NAS/SAN data storage products for utility applications · a market with exponential growth potential domestically and internationally. The management is optimistic that the Companys position as a Made-in-India manufacturer with a perpetual licence model, competitive pricing, and a differentiated multi-layer cybersecurity architecture will provide a durable competitive advantage in the data storage segment.

Marketing

The Companys products and solutions are now installed in over 110 countries, with successful deployments in over 6,000+ power substations of 765kV, 440kV, 400kV, 384kV, 220kV, 132kV, 110kV, 66kV, and 33kV capacities worldwide. This unparalleled reference base provides a strongfoundationforcontinued international expansion.

During FY 2025-2026, the Company appointed new distributors and strengthened channel partnerships in Australia, Brazil, Peru, Chile, Spain, South Korea, Vietnam, the Philippines,Thailand, France, the UK, Bulgaria,Serbia, and Latvia for its Cyber Security and Power Utility product lines.

The diversity of end-customers served during FY 2025- 2026 · spanning national power utilities, defence agencies, aerospace companies, government cybersecurity ministries, data centers, and railway networks across multiple continents · reflects the broadening of Valiants product applicability and global brand recognition.

Our Company is focused on expanding its global marketing network and building a larger base of associates / distributors and re-sellers, through which it can sell its products, on a worldwide basis. Our Company has its equipment successfully installed in over 110+ countries now.

Our Company has successful installations, worldwide, of its various equipment in over 6000+ power sub-stations of 765kV, 440kV, 400kV, 384kV, 220kV, 132kV, 110kV, 66kV and 33kV capacities.

Our Company is expanding its marketing network in Europe and South America. Our Company has appointed new distributors in Australia, Brazil, Peru, Chile, Spain, South Korea, Vietnam, the Philippines, Thailand for its Cybersecurity and Power Utility products.

Quality Initiatives

Valiant believes in sustained commitment to highest levels of quality, best-in-class product offerings and robust and fair business practices to help our Company to attain its objectives.

Our Company has successfully achieved the yardsticks to meet that standards ISO 9001:2015 (Quality Management), ISO 14001:2015 (Environmental Management), ISO 10001:2018 (Customer Satisfaction) and ISO45001:2018 (Occupational Health & Safety).

The management believes that all these quality initiatives will further strengthen our Companys product line in the global market.

Threats

The communication sector, being a high technology- intensive business is prone to rapid technological obsolescence. To cope with an ever changing dynamic and highly competitive communications business environment, our Company is innovating and evolving rapidly; offering technically advanced and competitively priced products, solutions and applications to the demanding international customers, while competing with some of the best businesses in the communication field, in theworld.

Outlook

Our Company continues to design, develop and introduce new products and technologies and strengthen its marketing network, worldwide. The introduction of new products and technologies are expected to help to increase domestic and international sales growth in the current year.

With the focus on developing new solutions for the fast- growing Utilities and Defence sectors, our Company continues to make rapid advancements both in technology upgradation and expanding its marketing footprint so that it can have a higher value share in both of these sectors.

Presently, the revenue of the Company is broadly driven by the power utility sector; however, the management also sees some exciting opportunities in Defence, IT/OT applications, Critical Infrastructure Industries (CII), and BFSI sectors both domestically and internationally.

Segment-wise Performance

Our net revenues (net of taxes and component sales) from operations on a standalone basis grew by 66.90% to Rs. 8,411.37 lacs in the reporting year. Domestic and export revenues constituted 85.78% and 14.22% of our total revenues respectively.

At the consolidated level, our net revenues (net of taxes and component sales) from operations on a consolidated basis grew by 66.90% to Rs. 8,487.29 lacs in the reporting year. Domestic and export revenues constituted 85.01% and 14.99% ofourtotal revenues respectively.

RiskandConcerns

Risk is an inherent aspect of every business. The communication sector being part of a rapidly changing technology orbit, the level of risk increases due to high technology obsolescence. However, continuous technological innovation, product development, value additions by research and development can minimize this class of business risk. Effective reporting and control mechanisms ensure timely information availability and facilitate proactive risk management.

The business in Indian environment has long gestation period and inherited execution delays, consequently, causes volatility in revenue recognition and profit figures in financial statements.

Further, in view of Industrial trend in India, our Company may face the delay in debtor realizations, which may have an adverse impact on cash position of our Company in the short-term. Consequently, our Company may face challenges maintaining the working capital requirements in view of upcoming larger opportunities.

Our Company may also face challenges meeting the requisite financial criteria of tender-based business, for which the Company has to rely on other larger business entities, which may have an adverse impact on margins.

The Board of Directors is responsible for monitoring risk levels on various parameters and their implementation to ensure the de-risking of the business at various levels. Further, the Audit Committee provides direction on risk management.

Internal Control System

Our Company has an adequate system of internal controls, implemented by the management to achieve efficiency in operations, optimum utilization of resources, effective monitoring of systems and compliance with applicable laws.

A qualified and independent Audit Committee of the Board of Directors reviews the internal audit reports and the adequacy of internal controls.

Exchange Rate Fluctuation

The functional currency of your Company is the Indian rupee, whereas substantial business receipts and payments are in foreign currencies. The exchange rate between the rupee and foreign currencies have been changing substantially, and your Company faces the risks associated with exchange rate fluctuation and translation effect, wherein the appreciation of the rupee against foreign currencies, adversely impacts its profitability and operating results.

Human Resources

Human resources are most precious asset of our Company, and our Company seeks to attract and retain the best talent available. Our Company provides an environment which encourages initiatives, innovative thinking and recognizes and rewards performance. Since our Company operates in state-of-the-art technologies, necessary training and development of its personnel are conducted on a continuous basis. Industrial relations with all employees are cordial. The Directors Report may be referredforany further details.

Financial and Operational Performance

Our Company has achieved its all-time high revenue figures for both at standalone and group level in the reporting year, which have a positive impact on profitability and thereby; margins have also been improved as provided below:

At Standalone Level

(in Rs. Lacs)

Annual basis:	CY2025-2026	PY2024-2025
Revenue	8,411	5,040
EBITDA$	3,235	1,566
PBT#	2,928	1,283
EBITDA margin (%)	38.46%	31.08%
EPS" Basic (in )	18.93	8.31
EPS" Diluted (in )	18.88	8.31

At Group Level (in Rs. Lacs)

Annual basis:	CY2025-2026	CY2024-2025
Revenue	8,487	5,085
EBITDA$	3,520	1,559
PBT#	3,213	1,276
EBITDA margin (%)	41.48%	30.65%
EPS" Basic (in )	21.13	8.40
EPS" Diluted (in )	21.08	8.40

$EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization #PBT stands for Profit before Tax EPS stands for Earning Per Share

Shareholders Fund

A statement of Shareholders Fund based on consolidated financial statements as on 31 March 2026 along with the comparison with the previous two years is given below:

(In Rs. Lacs)

Particulars	Year ended on 31 March 2026 (Audited)	Year ended on 31 March 2025 (Audited)	Year ended on 31 March 2024 (Audited)
Equity Paid-up Capital	1,144.21	762.81	762.81
Other Equity	8,505.45	5,392.16	4,421.20
Shareholders Fund / Equity	9,649.66	6,154.97	5,184.01

Significant Change in Financial Ratios

At Standalone Level

Particulars	2025-26	2024-25	% Variance
Current ratio (in times)	6.89	6.44	7%
Inventory turnover (in times)	5.48	3.09	77%
Debt-equity ratio (in times)	0.03	0.04	-30%
Debt service coverage ratio (in times)	32.08	18.35	75%
Return on equity ratio (in %)	29.14	17.71	65%
Trade receivables turnover ratio (in times)	4.38	3.31	32%
Trade payables turnover ratio (in times)	4.86	8.96	-46%
Net capital turnover ratio (in times)	1.38	1.19	17%
Net profit ratio (in %)	25.75	18.88	36%
Return on net worth (in %)	24.01	16.28	47%
Operating profit margin (in %)	38.46	31.08	24%
Interest coverage ratio (in times)	155.18	62.73	147%
Return on capital employed (in %)	32.53	22.14	47%
Return on investment (in %)	Not applicable

The variations in turnover ratios are because of the efficiency recorded in the working capital management, specifically at an inventory level and debtors realization. There is an increase in working capital of 60% on year-on- year basis, supported by increased profitability and resulting in an increase in cash generated from the operating activities. The Bank balance also increased because of the convertible warrants issued during the year under reporting. The purchases are stable and inventories have been reduced. The decline in trade payables turnover ratio is also because of a base effect. The decrease in Debt-Equity ratio is because of the increase in equity. The increase in above reported margin and return ratios are primarily because of the reported increase in revenue and other income. It has further positive impact on profitability and thereby, on the debt service and interest coverage ratio. Whereas, the increase in net-worth is also supported by the afresh warrants issued.

At Group Level

Particulars	2025-26	2024-25	% Variance
Current ratio (in times)	7.38	6.87	7%
Inventory turnover (in times)	5.53	3.12	77%
Debt-equity ratio (in times)	0.03	0.03	11%
Debt service coverage ratio(in times)	35.36	18.50	91%
Return on equity ratio(in%)	30.58	16.94	81%
Trade receivables turnoverratio (in times)	4.39	3.33	32%
Trade payables turnoverratio (in times)	4.73	8.46	-44%
Net capitalturnover ratio(in times)	1.26	1.08	17%
Net profit ratio (in %)	28.49	18.90	51%
Return on net worth (in %)	25.05	15.61	60%
Operatingprofit margin (in %)	41.48	30.65	35%
Interestcoverage ratio(in times)	170.20	62.35	173%
Return on capital employed (in %)	33.35	20.89	60%
Return on investment (in%)	82.55	32.54	154%

The variations in turnover ratios are because of the efficiency recorded in the working capital management, specifically at an inventory level and debtors realization. There is an increase in working capital of more than 60% on year-on-year basis, supported by increased profitability and resulting in an increase in cash generated from the operating activities. The Bank balance also increased because of the convertible warrants issued during the year under reporting. The purchases are stable and inventories have been reduced. The decline in trade payables turnover ratio is also because of a base effect. The decrease in Debt-Equity ratio is because ofthe increase in equity.

The increase in above reported margin and return ratios are primarily because ofthe reported increase in revenue and other income. It has further positive impact on profitability and thereby, the debt service and interest coverage ratio. Whereas, the increase in net-worth is also supported by the afresh warrants issued. Whereas, the return of investment is improved because of the appreciation of investmentvalueduring the year.

For formula methodology adopted and other details, please refer to the standalone financial statements and the consolidated financial statements.

CautionaryStatement

Statements and Management Discussion and Analysis describing our Companys objectives and expectations may be forward-looking, but within the meaning of applicable laws and regulations. Actual results may differ from those expressed in the statement.