Vraj Iron & Steel Ltd Management Discussions

The objective of this report is to convey the Managements perspective on the external environment and steel industry, as well as strategy, operating and financial performance, material developments in human resources and industrial relations, risks and opportunities and internal control systems and their adequacy in the Company during Financial Year 2025-26. This Report should be read in conjunction with the Companys financial statements, the schedules and notes thereto and other information included elsewhere in the Integrated Report and Annual Accounts 2025-26. The Companys financial statements have been prepared in accordance with Indian Accounting Standards (‘Ind AS) complying with the requirements of the Companies Act, 2013, as amended and in terms of the Regulation 34(2) (e) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Management of Vraj Iron and Steel Limited presents its Analysis Report covering the performance and outlook of the Company.

1. INDUSTRY STRUCTURE AND DEVELOPMENT

GLOBAL ECONOMY:

The global economy witnessed moderate growth during 2025 amidst heightened geopolitical tensions, evolving trade policies, and persistent inflationary pressures in certain regions. While easing inflation and gradual monetary policy relaxation by major central banks supported economic activity, global growth remained uneven across advanced and emerging economies. Trade disruptions arising from tariff measures, supply chain realignments and ongoing geopolitical conflicts continued to influence investment decisions and business confidence.

Advanced economies such as the United States and the Eurozone experienced moderate expansion, supported by resilient labour markets and consumer spending, although manufacturing activity remained subdued. China continued to face structural challenges arising from weakness in the real estate sector, subdued domestic demand and industrial overcapacity. Emerging economies, led by India and several ASEAN nations, continued to outperform the global average, supported by strong domestic demand, infrastructure investment and favourable demographic trends.

Commodity prices remained relatively stable during the year, with energy prices moderating due to improved supply conditions. However, volatility in freight costs and trade-related uncertainties continued to impact global manufacturing and industrial production.

Overall, the global economy is expected to witness gradual improvement in 2026, although geopolitical developments, protectionist trade measures and financial market volatility remain key risks.

INDIAN ECONOMY:

India continued to remain one of the fastest-growing major economies during FY 2025-26, supported by robust domestic demand, sustained public capital expenditure, healthy private sector investments and resilient macroeconomic fundamentals. Economic growth was driven by strong performance across manufacturing, construction, services and infrastructure sectors.

Government initiatives focusing on infrastructure development, manufacturing competitiveness, logistics, digital transformation and ease of doing business continued to strengthen industrial activity. Public investment

in roads, railways, ports, renewable energy, urban infrastructure and affordable housing remained a key catalyst for economic expansion.

Inflation remained broadly within the Reserve Bank of Indias target range for most part of the year, enabling a supportive monetary policy environment. Stable banking sector liquidity, healthy credit growth and continued focus on fiscal prudence further strengthened the economic outlook.

India also continued to attract significant foreign investments owing to policy stability, expanding manufacturing capabilities and favourable demographic advantages. Government initiatives such as Production Linked Incentive (PLI) schemes, National Infrastructure Pipeline, PM Gati Shakti and Make in India continued to encourage investments across manufacturing sectors, including steel.

Despite global uncertainties, Indias medium and long-term economic outlook remains positive, supported by structural reforms, rising domestic consumption and sustained infrastructure spending.

GLOBAL STEEL INDUSTRY:

The global steel industry experienced a mixed performance during FY 2025-26. Steel demand in developed economies remained relatively subdued due to slower industrial activity, weak construction demand and cautious capital expenditure. Demand from China continued to remain under pressure owing to prolonged weakness in the real estate sector and excess production capacity.

Global steel markets also witnessed increased trade protection measures as several countries imposed safeguard duties and anti-dumping measures to protect domestic manufacturers from rising imports. Chinese steel exports continued to influence global pricing dynamics, resulting in pricing pressure across international markets.

Nevertheless, demand from emerging economies, particularly India, Southeast Asia and the Middle East, remained resilient due to sustained infrastructure development and industrialisation. Investment in renewable energy, transportation infrastructure and manufacturing facilities continued to support steel consumption globally.

The World Steel Association expects global steel demand to recover gradually over the medium term, although geopolitical uncertainties, trade restrictions and fluctuations in raw material prices remain key challenges for the industry.

INDIAN STEEL INDUSTRY:

The Indian steel industry continued its strong growth trajectory during FY 2025-26 and remained one of the fastest-growing steel markets globally. Growth was supported by sustained government investment in infrastructure, housing, railways, roads, renewable energy, defense, urban development and manufacturing.

India retained its position as the worlds second-largest producer of crude steel and second-largest consumer of finished steel. Domestic steel demand remained healthy across construction, infrastructure, engineering, automobiles, capital goods and consumer durables sectors.

The Union Budget 2025-26 continued its emphasis on capital expenditure, infrastructure development and manufacturing-led growth, thereby creating favourable demand conditions for steel producers. Government initiatives under the National Infrastructure Pipeline, PM Gati Shakti, Smart Cities Mission and affordable housing programmes continued to generate significant steel demand.

To address rising imports and safeguard domestic manufacturers, the Government imposed a 12% safeguard duty on certain categories of steel imports during the year. This measure provided partial protection against low-priced imports and supported domestic steel prices.

The availability of domestic iron ore, increasing investments in capacity expansion, technological advancements and policy support continue to strengthen the long-term competitiveness of the Indian steel industry. Demand is expected to remain robust over the coming years, driven by urbanisation, industrialisation, renewable energy investments and continued public infrastructure spending.

Overall, the long-term outlook for the Indian steel industry remains positive. While short-term challenges such as global trade uncertainties, imported steel, raw material price volatility and geopolitical developments may continue to impact the sector, Indias strong domestic demand and favorable policy environment position the industry for sustained growth.

RAW MATERIAL MARKET:

Raw materials continue to be a key determinant of the Companys operational efficiency and cost structure. The principal raw materials used in the manufacture of sponge iron are iron ore and non-coking coal. Ensuring timely availability of quality raw materials at competitive prices remains critical to the Companys manufacturing operations.

India continued to strengthen its position as one of the worlds leading producers of iron ore and coal during FY 2025-26. Domestic iron ore production remained robust, supported by increased mining activity, capacity expansions and strong demand from the steel sector. The availability of iron ore remained largely adequate, although prices witnessed periodic fluctuations due to changes in domestic demand, export trends and global market conditions.

Coal production in India also recorded healthy growth during the year, aided by the Governments continued focus on enhancing domestic production and reducing dependence on imports. Increased production by Coal India Limited and its subsidiaries, along with improved logistics and evacuation infrastructure, ensured adequate availability of coal for the steel industry. However, coal prices remained volatile during the year owing to fluctuations in international energy markets, transportation costs and demand-supply dynamics.

The Company primarily procures coal from South Eastern Coalfields Limited (SECL) under a Long-Term Fuel Supply Agreement and supplements its requirements through coal linkage, e-auctions and open market purchases, depending upon operational requirements and commercial viability. Iron ore is primarily sourced from NMDC Limited under long-term supply arrangements, with additional procurement through e-auctions and other approved channels, whenever required.

The long-term arrangements with SECL and NMDC provide stability in raw material procurement, while procurement through linkage auctions and the open market offers flexibility in optimising costs and ensuring uninterrupted production. The Company continues to adopt a prudent procurement strategy, efficient inventory management practices and diversified sourcing to mitigate supply disruptions and manage raw material price volatility.

Looking ahead, the Company expects domestic availability of iron ore and coal to remain adequate, supported by continued policy initiatives of the Government, increased mining capacity and infrastructure development. The Company remains focused on securing sustainable raw material supplies, improving procurement efficiencies and maintaining cost competitiveness to support its long-term growth strategy.

OUR BUSINESS OVERVIEW:

The Company operates in two integrated steel manufacturing facilities at

1. Village Dighora, Tehsil Takhatpur, District Bilaspur, Chhattisgarh and

2. Industrial Area, Silatara, Raipur, Chhattisgarh.

The Companys integrated manufacturing operations comprise Sponge Iron, MS Billets, TMT Bars, and Captive Power Generation, enabling greater control over the production process, improved operational efficiencies, optimized manufacturing costs, and consistent product quality. The integrated business model also facilitates captive consumption of intermediate products and power, resulting in enhanced value addition and improved cost competitiveness. The Company primarily caters to the infrastructure, construction, engineering, and allied sectors.

During FY 2025-26, the Company successfully commissioned its 153,000 MTPA MS Billet Plant, and 15 MW Captive Power Plant at its Bilaspur facility. The MS Billet plant commenced commercial production on 27 March 2026, while the Captive Power Plant was commissioned on 18 December 2025 and commenced power generation during the year. These additions have significantly strengthened the Companys integrated manufacturing capabilities, increased operational efficiencies, and are expected to contribute to higher production volumes and improved profitability in the coming years.

The Companys manufacturing facilities are strategically located in the mineral-rich State of Chhattisgarh, with close proximity to key sources of iron ore, coal, and other raw materials. This strategic advantage ensures efficient procurement, lower logistics costs, a reliable supply chain, and better access to major consumption markets, thereby enhancing the Companys overall competitiveness

Installed and proposed Manufacturing Capacity (As on March 31, 2026)

Particulars	Unit of Measurement	Total Installed Capacity	Proposed Expansion in Bilaspur
		Raipur	Bilaspur	Total
Sponge Iron	MTPA	60,000	175,500	2,35,500	-
MS Billets*	MTPA	57,600	153000	210600	-
TMT Bars	MTPA	54,000	-	54,000	150000
Captive Power Plant	MW	5	15	20	-
Captive Solar Power	MW	15*	-	15	21*

The Company Proposes expansion of its TMT Bar manufacturing capacity by 150,000 MTPA and Captive Power generation capacity by 21 MW during FY 2026-27. These expansion initiatives are expected to strengthen the Companys manufacturing base, improve operational integration, and support sustainable longterm growth.

As on date of the Report, the Company propose to establish the following production capacity under Greenfield Integrated Steel Project at Bastar, Chhattisgarh in the first stage:

• Sponge Iron Plant - 201,000 TPA

• MS Billet Plant - 201,000 TPA

• Power Plant (WHRB) - 15 MW

• Power Plant (CFBC) - 15 MW

The proposed investment has been evaluated considering the positive long-term outlook for the steel industry and the industrial policy of the Government of Chhattisgarh, which offers attractive incentives for investments in the Bastar region. The project location also provides strategic advantages, including proximity to iron ore resources, improved logistics, lower transportation costs, and access to growing domestic steel demand.

The proposed expansion is expected to enhance the Companys manufacturing capacity, strengthen backward integration, improve cost competitiveness, and support its long-term growth strategy while creating sustainable value for all stakeholders.

DIVERSIFIED PRODUCT MIX WITH STRONG FOCUS ON VALUE ADDED PRODUCTS:

As part of its long-term growth strategy, the Company continues to strengthen its diversified product portfolio with a focus on value-added products, operational efficiency, and cost competitiveness.

The Company operates an integrated manufacturing facility producing Sponge Iron, MS Billets, TMT Bars, Captive Power, and Solar Power for captive consumption, enabling better control over quality, costs, and operational efficiencies across the value chain. During the year, the Company further enhanced its energy portfolio by adding solar power capacity, supporting its objective of improving energy efficiency, reducing dependence on conventional power sources, and promoting sustainable operations.

The Company continued to optimize its product mix with increased focus on TMT Bars, driven by sustained demand from the infrastructure and construction sectors. The captive power and solar power facilities contribute to cost efficiency by ensuring reliable and economical energy availability for manufacturing operations.

Going forward, the Company remains committed to expanding its value-added product portfolio, enhancing manufacturing capabilities, adopting sustainable practices, and strengthening its market presence to achieve long-term growth and value creation for stakeholders.

WORKING CAPITAL AUGMENTATION:

Efficient working capital management remains a key focus area for the Company, supporting uninterrupted operations, supply chain efficiency, and cost optimization. During the year, the Company strengthened its working capital position to ensure timely procurement of critical raw materials and maintain optimal inventory levels for its integrated steel manufacturing operations.

The Company primarily sources iron ore from NMDC and coal from SECL and its subsidiaries through long term fuel supply arrangements, along with procurement through linkage allocations, e-auctions, open auctions, and other reliable sources to ensure uninterrupted availability.

The improved working capital position has enabled the Company to enhance procurement efficiency, optimize inventory management, mitigate raw material price volatility, and ensure smooth production planning. Going forward, the Company will continue to adopt a disciplined approach towards working capital management to support operational efficiency and sustainable growth.

EXPERIENCED PROMOTER, BOARD AND MANAGEMENT TEAM:

The Companys growth has been driven by the strong leadership, industry expertise and strategic vision of its Promoter, Board of Directors and senior management team. Their extensive experience in the iron and steel industry has been instrumental in strengthening the Companys operational capabilities, corporate governance practices and long-term growth strategy.

The Company is led by its Promoter Mr. Vijay Anand Jhanwar, Chairman and Managing Director, who has over two decades of experience in the iron and steel industry. His leadership, supported by an experienced Board and a competent management team, provides strategic direction and operational excellence across the business. The Company also benefits from a skilled workforce and strategically located manufacturing facilities, enabling efficient operations and cost competitiveness. We believe that our experienced leadership, strong governance framework and dedicated employees will continue to support sustainable growth and longterm value.

TRACK RECORD OF GROWTH AND FINANCIAL PERFORMANCE:

The Company has established a strong track record of operational excellence, supported by its integrated manufacturing facilities, prudent financial management, and continued focus on operational efficiency. During FY 2025-26, the Company recorded a healthy increase in revenue, driven by higher production volumes and improved operational performance despite a volatile raw material and steel pricing environment. The Companys integrated manufacturing operations comprising Sponge Iron, MS Billets, TMT Bars, and Captive Power enable efficient utilization of resources, cost optimization, and greater operational flexibility. The captive consumption of intermediate products and power continues to strengthen margins by reducing dependence on external suppliers and improving overall manufacturing efficiency.

During the year, the Company achieved Revenue from Operations of Rs. 5,879.24 million, registering a growth of 23.76% over the previous year. Total Income increased to Rs. 5,966.01 million from Rs. 4,788.60 million in FY 2024-25. While EBITDA stood at Rs. 654.05 million and Profit After Tax (PAT) at Rs. 295.27 million, profitability was impacted by fluctuations in steel realizations, raw material prices, and higher finance and depreciation costs associated with expansion activities.

The commissioning of the additional Sponge Iron capacity towards the end of the financial year is expected to enhance production volumes, improve capacity utilization, and support future revenue and earnings growth. The Companys continued emphasis on operational efficiency, cost optimization, value-added products, and disciplined capital allocation provides a strong foundation for sustainable long-term growth.

Financia year	Revenue from Operations in millions	Total Income	EBITDA	PAT
1 2025-26	5879.24	5966.01	654.05	295.27
2 2024-25	4750.31	4788.60	660.47	418.31
3 2023-24	4198.57	4242.70	808.90	541.17
4 2022-23	5089.57	5107.01	783.82	513.32
CAGR FY 2025-26	3.67%	3.96%	(4.42%)	(12.91%)

The Company remains focused on enhancing operational efficiency, expanding its value-added product portfolio and strengthening its financial performance to deliver sustainable growth and long-term value for all stakeholder.

1. PRODUCT WISE PERFORMANCE OF STEEL IN F.Y. 2024-25 AND 2025-26:

The Company continued to maintain stable production across its key product segments during the year. Sponge Iron production increased significantly, supported by improved operational efficiencies and higher capacity utilization. Billet production remained stable, with a substantial portion being captively consumed for manufacturing value-added TMT bars. The Company also maintained consistent production and sales of TMT Bars, reflecting steady market demand:

Particulars of Product	Quantity Produced (MT)	Quantity Sold (MT)	Captive Use (MT)	Quantity Produced (MT)	Quantity Sold (MT)	Captive Use (MT)
Financial Year	2025-26	2024-25
SPONGE IRON	191464.00	145710.63	44739.39	147339.00	99438.04	46383.86
MS. BILLETS	48851.20	9915.66	37366.90	48310.20	10758.91	37487.35
TMT BAR	36229.90	35713.75	346.61	36299.45	36225.09	411.14

2. CAPACITY UTILISATION DURING THE FINANCIAL YEAR 2025-26:

The Company operated its manufacturing facilities at satisfactory capacity levels during the year. Sponge Iron capacity utilization stood at 81.30%, while TMT Bar capacity utilization was 67.09%. Billet production primarily catered to captive requirements of the rolling mill. During the year, the Company successfully commissioned one of its Sponge Iron Plants at Bilaspur with an installed capacity of 153,000 MTPA, which commenced commercial production on 27 March 2026. The additional capacity is expected to contribute meaningfully to production and revenue in the coming financial year:

Particulars of Product	Unit of measurement	Installed Capacity	Production	Utilised Capacity
SPONGE IRON	MTPA	235500	191464.00	81.30%
MS. BILLETS*	MTPA	210600	48851.20	23.20%
TMT BAR	MTPA	54000	36229.90	67.09%

*Includes the newly commissioned M.S. Billets Plant with installed capacity of 153000 MTPA at Bilaspur, which commenced production on 27 March 2026.

3. ON THE FINANCIAL FRONT, THE COMPANY HAS ACHIEVED:

During the financial year, the Company achieved the following key marks:

• Higher Revenue: The Company recorded healthy revenue growth due to higher production, better efficiency, and stable market demand.

• Healthy EBITDA Margins: The Company maintained healthy EBITDA margins through the captive use of Sponge Iron and Power, which helped reduce production costs.

• Stable Financial Position: The Company maintained a stable balance sheet with controlled debt and sufficient liquidity to meet working capital needs and support its expansion plans.

• Focus on Cost and Growth: The Company continued to focus on cost control, efficient use of capital, and increasing the share of value-added products to support sustainable long-term growth.

OUTLOOK:

The outlook for the Indian steel industry remains positive, supported by sustained investments in infrastructure, urbanization, affordable housing, railways, renewable energy, and manufacturing under various Government initiatives. Rising demand from construction, engineering, automotive, and capital goods sectors is expected to provide long-term growth opportunities for the domestic steel industry.

While the industry continues to face challenges such as volatility in raw material prices, dependence on imported coking coal, higher logistics costs, evolving environmental regulations, and global geopolitical uncertainties, continued policy support, infrastructure development, and capacity expansion are expected to strengthen the sectors competitiveness over the medium to long term.

For the Company, the ongoing expansion of manufacturing capacity, including the captive power plant, is expected to enhance operational efficiency, improve cost competitiveness, and strengthen its market presence. The Company remains focused on increasing capacity utilization, improving product quality, expanding its customer base, and adopting sustainable manufacturing practices while maintaining prudent financial discipline.

With its integrated manufacturing operations, strategic location in Chhattisgarh, and continued emphasis on operational excellence, the Company is well positioned to capitalize on the growing demand for steel products and create sustainable value for its stakeholders.

KEY CHALLENGES:

A. Lack of Sustainable Raw Material Sources (Iron Ore and Coal)

Iron ore and coal continue to be the primary raw materials for steel manufacturing. While India has remained one of the worlds largest producers of iron ore, the industry continues to face challenges relating to the availability of consistent, high-grade ore. A significant portion of domestic iron ore production comprises lower-grade fines, necessitating beneficiation and pelletisation before being used efficiently in steelmaking.

On the coal front, despite record domestic coal production during FY 2025-26, the steel industry—particularly producers of steel through the blast furnace route—continues to rely on imported coking coal due to the limited availability of high-quality domestic coking coal. Domestic coal generally contains higher ash content and requires washing and blending before use. Rising international coal prices, supply chain disruptions, and fluctuations in freight costs continue to impact raw material procurement costs. Although the Government has taken several initiatives to enhance domestic coal production and improve raw material security, ensuring a sustainable and cost-effective supply remains a key challenge for the steel industry.

B. High Logistic Costs

Logistics continues to be a significant cost component for the Indian Steel Industry. Steel manufacturing involves transportation of large volumes of iron ore, coal, limestone, finished steel products, and other inputs. The location of manufacturing facilities relative to mines, ports, and end-user markets has a substantial impact on overall logistics costs.

For steel manufacturers in Chhattisgarh, although the State enjoys the advantage of abundant iron ore reserves and proximity to major mining belts, transportation of coal, finished products, and movement through rail infrastructure continue to pose operational challenges. Capacity constraints on railway networks, increasing freight tariffs, road transportation costs, and last-mile connectivity issues contribute to higher logistics expenses.

The Governments continued investment in railway expansion, multimodal logistics parks, and the PM Gati Shakti initiative is expected to improve supply chain efficiency over the medium term. However, logistics costs remain higher than global benchmarks and continue to influence the competitiveness of domestic steel manufacturers during FY 2025-26.

C. High Energy Cost

Rising power and fuel costs increase manufacturing expenses.

D. Price Volatility

Fluctuating steel and raw material prices impact profitability and planning.

E. Decarbonization and Environmental Concerns

The steel industry is increasingly focused on reducing carbon emissions in line with global sustainability goals and evolving regulatory requirements. India has committed to reducing the emissions intensity of its GDP by 45% by 2030 (from 2005 levels) and achieving Net Zero emissions by 2070. In support of these targets, the Ministry of Steel is promoting the adoption of green steel technologies, renewable energy, and energy-efficient manufacturing practices.

Further, the European Unions Carbon Border Adjustment Mechanism (CBAM), which will be implemented from 2026, is expected to impact exports of carbon-intensive products, including steel. Consequently, steel manufacturers are required to enhance operational efficiency, reduce emissions, and adopt sustainable production practices to remain competitive in both domestic and international markets.

RISK FACTORS RELATED TO OUR BUSINESS: .

1. Industry Demand and Price Volatility;

Our revenue is primarily derived from the sale of steel products, including TMT Bars, MS Billets, Sponge Iron, and related products. The steel industry is cyclical in nature and is influenced by fluctuations in demand, raw material costs, and steel prices. Any sustained decline in steel prices or demand may adversely affect our revenue and profitability.

2. Macroeconomic and Regulatory Risks;

Changes in GDP growth, inflation, interest rates, government policies, trade regulations, and geopolitical developments may affect infrastructure spending, industrial activity, and overall steel demand. Such factors may also disrupt supply chains and influence input costs and export opportunities.

3. Competitive and End-User Industry Risks;

The steel industry is highly competitive and dependent on the performance of key end-user sectors such as construction, infrastructure, engineering, and capital goods. Increased competition, project delays, or slowdown in these sectors may adversely impact demand, pricing, and market share.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has an adequate internal control system commensurate with the size and nature of its business. The system is designed to ensure efficient operations, safeguarding of assets, compliance with applicable laws and regulations, accuracy of financial records, and timely preparation of reliable financial information.

The effectiveness of the internal control framework is regularly reviewed through internal audits and monitored by the Audit Committee. The Statutory Auditors also evaluate the adequacy of internal financial controls as part of the audit process. The Management believes that the Companys internal control systems are adequate and operating effectively.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

1. Share Capital:

The Companys paid-up equity share capital stood at Rs. 329.82 million as on March 31, 2026, with no change during the year.

2. Total Income:

The Company reported a Total Income of Rs.5,966.01 million for FY 2025-26 as compared to Rs. 4,788.60 million in the previous year, registering a growth of 24.59%. Profit after Tax (PAT) stood at Rs. 295.27 million as against Rs. 418.31 million in the previous year. The decline in profitability was primarily attributable to higher raw material costs, increased depreciation, and market price fluctuations.

3. Reserves and Surplus:

The Board has not proposed any transfer to specific reserves during the year. The retained earnings have been carried forward in accordance with the applicable accounting standards and statutory requirements.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED:

Human resources continue to be one of the Companys key strengths. During the F.Y. 2025-26, the Company strengthened its workforce to support its expanding operations and business growth. As on March 31, 2026, the Company had a total workforce of 871 employees and workers, comprising 492 permanent employees (including 3 Executive Directors and 2 Key Managerial Personnel) and 379 contract workers, as compared to 768 employees and workers in the previous year.

The increase in manpower was primarily driven by the operational expansion at the Bilaspur plant, enabling the Company to enhance its production capabilities and operational efficiency.

The Company continues to focus on employee development through regular training, skill enhancement, workplace safety, and employee engagement initiatives. Industrial relations remained cordial throughout the year, with continued emphasis on maintaining a safe, inclusive, and performance-driven work environment.

DETAILS OF SIGNIFICANT CHANGES:

Our Company has significant changes in the key financial ratios during the financial year 2025-26 as below:

Financial Ratios	Numerator	Denominator	Ratio 2025-26	% changes in FY 2026	Ratio 2024-25	% change in FY 2025
1 Current Ratio	Current Assets	Current Liabilities	7.150	(32.69%)	10.622	131.40%
2 Debt-Equity Ratio	Total Debt	Shareholders Equity	0.103	1632.18%	0.006	(98.23%)
3 Debt Service Coverage Ratio	PBT + Depreciation + Interest	Finance Cost + Repayments of Current and NonCurrent term Borrowings	12.821	(69.85%)	42.519	79.86%
4 Return on Equity	Profit after Tax	Avg. Shareholders Equity	0.142	(34.58%)	0.218	(31.37%)
5 Inventory Turnover Ratio	Revenue from Operations	Average Inventory	9.934	(3.16%)	10.258	(10.11%)
6 Trade Receivable Turnover Ratio	Revenue from Operations	Average Trade Receivable	21.892	(24.61%)	29.039	(15.54%)
7 Trade Payables Turnover Ratio	Purchases	Average Trade Payables	43.087	32.31%	32.565	56.77%
8 Net Capital Turnover Ratio	Revenue from Operations	Average Working Capital	9.403	24.11%	7.577	42.17%
9 Net Profit Ratio	Profit after Tax	Revenue from Operations	0.050	(42.97%)	0.088	(31.68%)
10 Return on Capital Employed	EBIT	Capital Employed	0.092	(38.57%)	0.149	(49.81%)

EXPLANATION FOR CHANGE IN RATIOS FOR THE YEAR ENDED (FOR MORE THAN 25%):

Current Ratio	Debt-Equity Ratio
Due to substantial increase in Current Liability.	Due to increase in Term loan.
Debt Service Coverage Ratio	Return on Equity
Due to increase in debts and decrease in profit.	Due to decrease in profit and increase in equity.
Trade Payable Turnover Ratio	Net Profit Ratio
Due to substantial increase in purchase.	Due to increase in turnover & substantial decrease in Profit.
Return on Capital Employed
Due to decrease in profit & increase in capital employed

CAUTIONARY STATEMENT:

This report contains forward- looking statements based on the perceptions of the Company and the data and information available with the company. The company does not and cannot guarantee the accuracy of various assumptions underlying such statements and they reflect Companys current views of the future events and are subject to risks and uncertainties. Many factors like change in general economic conditions, amongst others, could cause actual results to be materially different.