Waaree Technologies Ltd Management Discussions

OVERVIEW

The operating and financial review pertains to the management s perspective on the financial condition as well as the operating performance of the Company for the FY2024-25. The following discussion of the Company s financial performance result and operating results should be read in conjunction with the Company s Financial Statements and Notes thereto and other information included elsewhere in the Annual Report. The Company s Financial Statements were prepared in compliance with the requirements of the Companies Act, 2013.

India s battery industry is undergoing a transformative shift, driven by rapid growth in energy demand, increasing penetration of electric vehicles (EVs), expansion of renewable energy capacity, and policy-level support for energy storage solutions. The sector encompasses a wide range of technologies including lead-acid batteries, lithium-ion (Li-ion) batteries, and emerging chemistries such as solid-state and sodium-ion batteries.

With the Indian government s strong focus on decarbonization, domestic manufacturing, and energy security, the battery sector has gained strategic importance. Initiatives such as the Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) battery storage, FAME-II policy to boost EV adoption, and the National Mission on Transformative Mobility and Battery Storage are catalyzing investments and technology transfers in this domain.

India currently remains a large consumer of batteries, but is heavily dependent on imports for lithium cells and advanced components. However, the trend is rapidly shifting toward local value addition and integrated manufacturing. Several Indian and global players are investing in giga-factories, research and development, and recycling infrastructure to build a sustainable battery ecosystem.

The lead-acid battery segment continues to hold a significant share due to its affordability and wide application in automotive and inverter markets. However, lithium-ion batteries are witnessing exponential growth, particularly in two-wheeler EVs, solar storage, telecom, and data center applications. The demand is expected to further accelerate with the scaling up of electric mobility and decentralized renewable power systems.

As the battery landscape evolves, companies with a strong focus on technology, quality, backward integration, and cost efficiency will be well-positioned to capture emerging opportunities. India is poised to become a global hub for battery manufacturing, supported by favorable demographics, rising energy needs, and a growing emphasis on clean and sustainable solutions.

INDUSTRY STRUCTURE AND DEVELOPMENTS

Battery technology has witnessed remarkable progress, resulting in improved energy density, longer lifespans, faster charging capabilities, and reduced costs. Lithium-ion batteries, the most prevalent energy storage solution, have become even more efficient and affordable, making them widely accessible for various applications.

The use of residential energy storage systems has increased owing to awareness and cost parity attained by solar power. These systems allow homeowners to become more energy independent, reduce their electricity bills, and contribute to a more sustainable energy future by enabling a higher penetration of renewable energy in the overall energy mix. As the generation is localised to consumption point it also helps in reduction of T&D losses of the distribution companies.

The deployment of grid-scale energy storage systems has become more widespread and essential for grid stability and renewable energy integration. Large-scale lithium-ion battery installations, flow batteries, compressed air energy storage (CAES), and other innovative technologies are being deployed to balance supply and demand, mitigate intermittency issues, and facilitate the integration of renewable energy sources. These installations have significantly reduced reliance on fossil fuels and improved grid resilience. In the recent past at the National level lot many tenders in form of RE-RTC, Hybrid, Peak Power tenders, Solar with BESS system, standalone BESS Systems and FRDE bids have been awarded which would propel adoption of the Battery Energy Storage Systems in India. BESS provides energy price arbitrage owing to the differential pricing of energy throughout the day, it also provides mechanism for de-congesting the grid, provide for spinning reserve for frequency and voltage control, time shifting of excess energy etc.

The concept of Vehicle-to-Grid (V2G) has gained prominence, allowing electric vehicles (EVs) to not only draw power from the grid but also supply it back during peak demand periods. EVs, equipped with bidirectional charging capabilities, act as mobile energy storage units, enabling a more flexible and distributed energy system. V2G technology has been implemented on a larger scale, creating virtual power plants that enhance grid stability and reduce strain during peak hours and also to curtail eventuality in case of a sudden generation going out of order or grid imbalance.

COMPANY STRUCTURE AND DEVELOPMENTS

During the period under review total revenue of the Company for the year was Rs. 104,510,155/- as against Rs. 289,049,446/- in the previous year. During the period under review the Company incurred loss before tax of Rs. 75,325,824/- against the loss before tax of Rs. 98,943,790/- in the previous year. The loss after tax for the year is Rs. 56,499,873/- against the loss after tax of Rs. 75,001,326/- in the previous year.

Your Company is engaged in the business of manufacturing of batteries, catering to both industrial and consumer segments, with a particular focus on energy storage systems, electric vehicles (EVs).

The Company has faced multiple operational and financial challenges, including, higher input costs, underutilized production capacity, and slower-than-expected market traction.

Despite the setbacks, the Company has made considerable efforts in streamlining operations, optimizing working capital, restructuring its cost base, and upgrading technology and quality systems at the manufacturing facility. Significant steps have also been taken to diversify the product mix and enter new market segments such as lithium-ion batteries and battery energy storage systems (BESS).

Indias battery manufacturing sector is poised for exponential growth driven by the Government s initiatives like FAME-II, PLI scheme for ACC battery storage, and the push for electric mobility and renewable energy adoption. The Company is well-positioned to capitalize on these developments.

The Management Discussion & Analysis Report has been included in accordance with the code of Corporate Governance approved by the Securities and Exchange Board of India. The report herein presents the Company Overview, SWOT Analysis, Initiatives by the Company and overall outlook of the Company for the future. This outlook is based on the assessment of the current environment which may vary due to future economic and other developments in the universal arena. The Company is looking for a good future ahead and targeting the corresponding growth in the next year.

Performance Review:

Ratios	F.Y 2024-25	F.Y 2023-24	Reason if change is more than 25%
Debtor Turnover Ratio	100.97	136.80	Due to reduction in revenue in current year
Inventory Turnover Ratio	0.56	0.34	Decrease in cost of good sold
Current Ratio	0.49	0.76	Reduction in Current ratio is due to decrease in Current Asset
Debt Equity Ratio	(-9.25)	4.77	Due to losses in current year equity is negative during the year
Operating Profit Margin (%)	(55.20)%	(34.93)%	Reduction due to company incurred losses in current year
Net profit Margin (%)	(74.85)%	(26.27)%	Reduction due to company incurred losses in current year
Return on net worth	3.94	(2.65)	Due to losses in Current year

SWOT ANALYSIS

1. STRENGTHS:

* The Company has adopted advanced battery production techniques and adopts flexible manufacturing techniques to adapt to the market in terms of product delivery.
* The management has past experience in battery manufacturing and has better reach with customers.
2. Weakness:
* Tough competition
* This Business heavily relies on specific raw materials that are subject to supply chain disruptions.
* Evolving regulations related to battery technologies and disposal need constant capex infusion to keep up with market expectations.
3. Opportunities:
* The Company expects good business from trading and sale of batteries and its product components.
* The EV push by government and domestic/C&I/Grid Scale Storage of energy will provide good business opportunities to the Company.
4. Threats:
* The Company has to operate in highly competitive and price sensitive market and acquiring grip over such market to hold its foot firmly is challenging.
* Adverse change in the Government Policies may affect the business operations of the Company
* Technology Obsolescence: Obsolescence has become order of the day in this industry and thus to be at par with its competitors the Company has to ensure that it constantly updates and upgrades its technology / Bill of Materials & Product offerings.

/ Bill of Materials & Product offerings.

INTERNAL CONTROL SYSTEMS

The Company has adequate internal control systems which ensure protection against misuse or loss of the Company s assets. The Company deploys a robust system of internal control that facilitates the accurate and timely compilation of financial statements and management reports; ensures regulatory and statutory compliance and safeguards investor s interests by ensuring the highest level of governance and periodical communication with investors. The Audit Committee also reviews the effectiveness of the Company s internal control system which provides adequate safeguards & effective monitoring of its transactions.

HUMAN RESOURCE DEVELOPMENT

Human Resource Development is paramount in every organization. The management continues to lay emphasis on identifying, developing the talent in the organization with a view to retain them and further training those who are capable of handling additional responsibilities. Developing people and harnessing their ideas is high priority for the Company. Total number of employees at the end of March 31, 2024 stood at 43.

FINANCIAL PERFORMANCE WITH REFERENCE TO OPERATIONAL PERFORMANCE

Financials of the Company is detailed in the Financial Accounts of the Company forming part of the Annual Report. The Financial Statements have been prepared in compliance with the requirements of the Companies Act, 2013. The operational performance of the Company for previous 3 years is detailed as follows:

Rs. in Lakhs

						Rs. in Lakhs
Year	Total Revenue	Revenue Growth %	PAT	% Change in PAT	EPS	% change in EPS
2024-25	1045.10	(63.83)	(565.00)	(24.67)	(5.25)	(24.68)
2023-24	2890.49	(2.74)	(750.02)	589.93	(6.97)	590.10
2022-23	2971.96	120.33%	(108.71)	-680.72%	(1.01)	-539.13

PERFORMANCE

The Company is engaged into single segment reporting during the year under review. During the year under review the performance was negative, but it seems that in future it will increase the performance positively.

OUTLOOK

Considering the acquisition of battery business and opportunities in the market, management consider favourable outlook for the Company to achieve considerable business in future.

RISK AND CONCERN

Company at present is exposed to the normal industry risk factor of change in technology, unfavourable government policies, volatility in interest rate, economic cycle and credit risk.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis Report describing the Company s objectives, projections, estimates, expectations or predictions may be forward looking statements within the meaning of the applicable securities laws and regulations. Actual results could differ materially from those expressed or implied.

Reg. Office: 602, Western Edge I, Western Express	For and on Behalf of the Board of Directors
Highway Borivali East, Mumbai 400066 Mumbai	For Waaree Technologies Limited
(Maharashtra)	Sd/-
Date: August 18, 2025	Kirit Chimanlal Doshi
Place: Mumbai	Chairman and Managing Director
	DIN: 00211972