Winsol Engineers Ltd Management Discussions

The following discussion outlines the operational and financial performance of the Company, as well as its business outlook for the financial year 2024-25. This analysis is based on the prevailing business environment and current Government policies. It should be noted that future economic developments and other external factors may lead to variations in this analysis.

The Managements perspective on the Companys performance and future outlook is presented

below:

ECONOMIC OVERVIEW

Global Economy

The global economy is navigating a critical phase. After years of unprecedented shocks, signs of stabilization began to emerge in 2024. Inflation, though still above target levels, eased from multidecade highs, supported by the unwinding of supply bottlenecks and the lagged impact of monetary tightening. Labor markets also normalized, with unemployment and vacancy rates returning to pre-pandemic levels.

At the same time, major policy shifts-particularly new waves of tariffs and countermeasures announced since February 2024-are reshaping the global trade system, adding fresh uncertainty and testing resilience.

According to the IMFs World Economic Outlook Update (January 2025), global GDP growth is projected at 3.3% in 2025 and is expected to remain at the same level in 2026. The outlook reflects robust domestic demand in the United States, coupled with steady performance in several emerging market and developing economies. However, these projections remain below the historical average of 3.7% recorded during 2000-2019.

The moderation in growth reflects the effects of tight monetary policy, reduced fiscal support amid elevated debt levels, and structural productivity challenges. Global headline inflation is forecast to decline from 4.2% in 2025 to 3.5% in 2026, though regional variations will persist. Tariff-related price pressures may particularly weigh on advanced economies.

Source:

Indian Economy Outlook

India continues to stand out as the worlds fastest-growing major economy, maintaining steady momentum despite global headwinds. Real GDP growth for FY 2024-25 is estimated at 6.5%, with the Reserve Bank of India projecting a similar pace for FY 2025-26. This resilience underscores Indias role as a key driver of global economic expansion.

Inflation has moderated significantly, providing relief to households

and businesses alike. As of May 2025, the Consumer Price Index (CPI) inflation stood at 2.82%, the lowest level since February 2019.

Indias capital markets reflect strong investor confidence, serving as a vital engine of growth by channeling household savings into productive investments. By December 2024, Indian equity markets outperformed many peer economies, demonstrating both domestic and global trust in Indias long-term growth story.

Retail participation has surged sharply, with the number of retail investors rising from 4.9 crore in 2019 to 13.2 crore by the end of 2024. This significant increase illustrates a growing shift in public perception-viewing the stock market not merely as a corporate funding mechanism but also as an avenue for wealth creation for ordinary citizens.

Source:

INDUSTRY STRUCTURE AND DEVELOPMENTS

Indias renewable energy sector has grown rapidly over the past decade, supported by favorable government policies, strong investor interest, and increasing cost competitiveness. As of FY25, the countrys installed renewable capacity stood at around 220 GW, with solar and wind energy accounting for a significant share. Solar power has crossed the 100 GW milestone, while wind energy capacity has exceeded 50 GW, reflecting Indias position as a global leader in clean energy adoption. The Government of India has set an ambitious target of 500 GW of renewable energy capacity by 2030, which will require annual additions of nearly 50 GW. This is being facilitated through large- scale tenders, transmission upgrades, and policy measures such as the Production-Linked Incentive (PLI) scheme to strengthen domestic manufacturing.

FY25 witnessed record additions of renewable capacity, with nearly 25 GW installed during the year. Importantly, renewable energy has become increasingly cost effective, with solar tariffs falling sharply over the past decade to around Rs. 2.15 per unit, making solar power more competitive than conventional thermal sources. At the same time, domestic manufacturing capacity for solar modules and cells has expanded significantly and is expected to further scale up in the coming years.

The sector continues to attract strong policy and financial support, with higher budgetary allocations, steady inflow of foreign direct investment, and robust participation in central and state- level auctions. While challenges such as land availability and transmission infrastructure remain, Indias renewable energy industry is well-positioned for sustained growth. These developments create significant opportunities for the Company, enabling it to strengthen its role in providing engineering, procurement, and construction solutions in line with the nations clean energy transition.

Government Initiatives

The Government of India has launched several initiatives to accelerate renewable energy growth and achieve the 2030 target of 500 GW of non-fossil fuel capacity. A major step in this direction is the Production-Linked Incentive (PLI) Scheme for high-efficiency solar PV modules, which is boosting domestic manufacturing capacity and reducing import dependence. With this support, Indias solar module capacity is expected to touch 100 GW by 2026, positioning the country as a global hub for renewable energy equipment.

To enable large-scale integration of clean energy, the Government

has emphasized expansion of transmission infrastructure under the National Electricity Plan, including the development of Green Energy Corridors and support for battery energy storage systems (BESS) and pumped storage projects. At the same time, the National Green Hydrogen Mission, with significant financial outlay, aims to make India a leader in green hydrogen production and exports, further driving demand for renewable energy.

Budget allocations for the Ministry of New and Renewable Energy (MNRE) have also been increased substantially, with a focus on capacity expansion, technology adoption, and grid integration. In addition, central agencies such as SECI, NTPC, and NHPC continue to drive capacity additions through competitive tenders and long-term PPAs, providing stability and visibility for project developers.

These initiatives are creating a strong pipeline of opportunities across the renewable energy value chain, offering growth prospects for engineering, procurement, and construction companies like ours, which are well-positioned to contribute to Indias clean energy transition.

S ource:

OUR BUSINESS

Your Company was originally incorporated as Winsol Engineers Private Limited on December 30, 2015, in Jamnagar, Gujarat, under the Companies Act, 2013. Pursuant to its conversion into a public limited company, a fresh certificate of incorporation reflecting the new name was issued by the Registrar of Companies, Gujarat, on December 21, 2023.

Headquartered in Jamnagar, your Company is an integrated Engineering, Procurement, Construction, and Commissioning (EPCC) enterprise with a specialized focus on Balance of Plant (BoP) solutions for wind and solar power generation projects. Its core offerings include foundation works, substation civil and electrical works, Right of Way (RoW) services, cabling from plant to substation and grid, and other project-specific works. Alongside these, it provides comprehensive Operations and Maintenance (O&M) solutions such as SCADA-based remote monitoring, preventive maintenance, and field-level manpower support, ensuring reliability, maximizing asset performance, and enhancing the lifecycle of renewable energy projects.

The Promoters, Mr. Ramesh Jivabhai Pindariya and Mr. Kishor Jivabhai Pindariya, who have been associated with the business since its inception, bring over three decades of experience in the engineering industry. Their vision, supported by a strong Board of Directors, Key Managerial Personnel, and Senior Management team, has been instrumental in shaping the Companys growth strategy, operational execution, and customer-centric approach.

With a strong emphasis on quality, safety, and sustainability, the organization holds ISO certifications-ISO 9001:2015 for Quality Management System, ISO 14001:2015 for Environmental Management System, and ISO 45001:2018 for Occupational Health and Safety Management System. These accreditations reflect its commitment to operational excellence, environmental responsibility, and employee well-being. Leveraging its technical expertise, industry knowledge, and robust execution capabilities, your Company is well-positioned to contribute meaningfully to Indias renewable energy growth story while creating long-term value for its stakeholders.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

The Company is primarily engaged in a single line of business activity.

In accordance with Indian Accounting Standard (Ind AS) 108 - Operating Segments, separate segmental reporting is not applicable as the operations are confined to a single reportable segment.

However, from an operational perspective, revenue is generated from two key verticals within the renewable energy infrastructure space:

Balance of Plant (BoP) Solutions and

Operations & Maintenance (O&M) Services

Under the BoP vertical, the Company provides comprehensive solutions for both wind and solar power projects. These services cover all critical infrastructure components, excluding the generation equipment itself, and are often delivered on a turnkey Engineering, Procurement, and Construction (EPC) basis. The scope includes foundation works for wind turbines and solar modules, substation civil and electrical works, Right of Way (RoW) services, cabling from project site to substation and grid interconnection, and other project-specific works. These activities play a vital role in ensuring the smooth commissioning and operational readiness of renewable energy projects.

Complementing this, the O&M vertical focuses on delivering end-to-end services for wind and solar energy assets to ensure optimal performance and lifecycle efficiency. The offerings include site supervision and operational support, SCADA-based monitoring for real-time performance tracking, inspection and anomaly detection, scheduled maintenance and periodic component replacement, technical audits with detailed reporting, and provision of skilled manpower for continuous site operations. By adopting preventive maintenance practices, these services help reduce unplanned downtime, enhance energy generation efficiency, and strengthen the long-term reliability of renewable energy assets.

OPPORTUNITIES AND THREATS

The engineering industry faces a dynamic landscape with various opportunities and threats influenced

by technological advancements, economic factors, and societal shifts. Heres a breakdown:

Opportunities

Expanding wind energy market with installed capacity crossing 45 GW against a potential of over 300 GW, offering significant scope for new projects and BoP services.

Declining renewable energy costs driven by improvements in turbine efficiency, larger projects, and better grid integration, making renewables more competitive than fossil fuels.

Strong government push through initiatives like the National Hydrogen Mission and PLI scheme for solar PV manufacturing, encouraging domestic manufacturing and job creation.

Aggressive national target of 620 GW renewable capacity by 2030, including 470 GW from solar and wind, expected to drive demand for EPC and O&M services.

Growing private and foreign investments, with over US$ 30 billion invested in 2024, indicating robust investor confidence.

Rising corporate focus on ESG and sustainability, boosting demand for reliable BoP and O&M services.

Threats

Policy and regulatory uncertainties, with frequent changes, complex approvals, and procedural delays impacting project execution.

Technological challenges such as limited advanced turbines,

specialized components, and skilled manpower requirements affecting scalability.

Supply chain risks from geopolitical tensions, raw material shortages, and logistics constraints, leading to delays and cost escalations.

Climatic and environmental challenges, including extreme weather events and stricter compliance requirements, adding to operational and financial risks.

OUTLOOK

Your Company was founded with a vision to leverage technology and engineering excellence to optimize natural resources and deliver sustainable energy solutions for the future. With over four decades of promoter experience and a management team that blends youthful agility with seasoned expertise, the Company is positioned to drive innovation, efficiency, and operational excellence in the renewable energy sector.

Operational efficiency continues to be at the core of our strategy, supported by strict cost management, robust project monitoring, and continuous process improvements. By modernizing equipment, upskilling our workforce, and refining procurement strategies, we ensure timely and cost-effective project execution while maintaining high-quality standards.

Looking ahead, your Company aims to strengthen its leadership in Balance of Plant and Operation & Maintenance services, fully aligned with Indias ambitious renewable energy goals. With a strong foundation and a proactive approach, the Company is well placed to seize emerging opportunities and contribute significantly to the nations clean energy transition.

RISK AND CONCERNS

Your Company has established a comprehensive risk management framework aimed at identifying, assessing, and mitigating potential risks in a systematic manner. This framework involves continuous monitoring, trend analysis, and impact evaluation, which enables early detection of challenges and the adoption of proactive measures. It covers a broad spectrum of risks including strategic, operational, financial, compliance, and environmental risks, reflecting the evolving dynamics of the engineering and renewable energy sector. Key concerns such as project execution delays, raw material cost fluctuations, supply chain disruptions, policy or regulatory changes, and safety and environmental challenges are closely monitored to safeguard operational stability.

To mitigate these risks, your Company emphasizes preventive action through strong internal processes, diversified procurement strategies, and strict adherence to quality and safety standards. Regular reviews by senior management and the Audit Committee ensure that corrective actions are taken promptly and effectively. This structured approach not only reduces potential adverse impacts but also strengthens operational resilience, builds stakeholder confidence, and positions the Company to seize emerging opportunities while navigating uncertainties inherent in the industry.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Your Company maintains adequate internal control procedures that are appropriate to its size and the nature of its business operations in India. Well-defined policies, guidelines, and procedures form the foundation of these internal control systems.

The effectiveness of these controls, covering the Companys business processes and financial

reporting mechanisms, is regularly reviewed by both the management and the internal auditors.

Internal audits are conducted periodically to identify any weaknesses and recommend improvements for enhanced operational efficiency.

The findings and suggestions of the internal auditors are thoroughly reviewed by the Audit Committee, which oversees the implementation of corrective actions to ensure robust and effective internal controls.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

(? in Lakhs)

Particulars	Standalone-Year Ended		Consolidated-Year Ended
	31/03/2025	31/03/2024	31/03/2025	31/03/2024
Revenue From Operations	11057.40	7516.49	11141.85	7804.91
Other Income	6.54	7.26	6.54	7.36
Total Income	11063.95	7523.75	11148.39	7812.27
Less: Total Expenses before Depreciation, Finance Cost and Tax	9369.80	6238.85	9391.32	6470.7
Profit Before Depreciation, Finance Cost and Tax	1694.15	1284.90	1757.07	1341.57
Less: Depreciation	38.97	37.33	38.97	37.33
Less: Finance Cost	96.27	78.72	99.75	80.64
Profit Before Tax	1558.91	1168.84	1618.35	1223.60
Less: Current Tax	429.10	298.06	444.06	312.33
Less: Deferred tax Liability (Asset)	(4.40)	(0.89)	(4.39)	(0.89)
Profit After Tax	1134.21	868.09	1178.68	908.58

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS

Your Company strongly believes that its employees are its most valuable asset and the cornerstone of its sustained growth. A key focus area continues to be the development of a performance-oriented, competency-driven culture built on the pillars of accountability, transparency, and continuous improvement.

During the year under review, your Company undertook several human resource initiatives aimed at enhancing organizational effectiveness and workforce capability. These included structured training programs, both in-house and external, designed to strengthen domain expertise, develop leadership skills, and promote cross-functional efficiency. Employees at all levels were encouraged to participate in workshops and sessions aligned with industry trends, regulatory changes, and operational best practices.

The Company has also implemented employee engagement measures that foster a collaborative and motivated work environment. Regular performance reviews, open communication channels, and recognitions of high-performing employees are among the many steps taken to cultivate a high- performance culture and ensure alignment with business objectives.

As on March 31, 2025, the Company had a total of One Hundred Twenty-Seven (127) full-time employees. Despite operating with a lean workforce, the Company continues to maintain operational agility and functional accountability through streamlined systems and clear role definitions. Industrial relations during the financial year remained cordial and harmonious.

The management remains committed to maintaining a positive and productive work environment built on mutual respect and cooperation. Going forward, the Company aims to further strengthen its

human capital through strategic talent acquisition, upskilling initiatives, and succession planning to support its growth aspirations.

KEY FINANCIAL RATIOS

Ratio	Figures As At 31.03.2025	Figures As At 31.03.2024	% Change From Last Year	Explanation for Change in Ratio (for more than 25% in comparison with last year)
Current Ratio	2.54	1.83	38.92	The Company\u2019s current assets have increased significantly relative to its current liabilities, leading to a reduction in overall debt.
Debt-Equity Ratio	0.33	0.55	(39.17)	DE ratio of the company has improved on account of reduction in debt due to payment of term loan, pay off of other liability resulting in decrease in debt.
Debt Service Coverage Ratio	0.97	1.24	(21.94)	-
Interest Coverage Ratio	17.19	15.97	7.67	-
Return on Equity Ratio	0.34	0.67	(48.45)	-
Inventory turnover ratio	-	-	-
Trade Receivables turnover ratio	3.72	3.19	16.69	-
Trade payables turnover ratio	9.65	8.62	11.94	-
Net capital turnover ratio	3.09	4.95	(37.65)	The Net capital turnover ratio has decreased. Though the turnover has increased during the year, the capital employed has also increased due to increase in Profit resulting in decrease in Net capital turnover ratio.
Net profit ratio	10.26	11.55	(11.18)	-
Operating Profit Margin	14.10	15.55	(9.34)	-
Return on Capital employed	0.46	0.82	(43.77)	The companys average capital employed have increased significantly relative to earnings before interest and tax, leading to a reduction in overall debt.
Return on investment	-	-	-	-

CAUTIONARY STATEMENT

This report contains forward-looking statements that reflect your Companys current views and future expectations in accordance with applicable laws and regulations. These statements relate to the Companys strategic objectives, business prospects, plans, projections, estimates, and anticipated financial performance. They are based on certain assumptions and expectations of future events which are inherently subject to risks and uncertainties. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors-both external and internal-that could cause actual results, performance, or achievements to differ materially from those expressed or implied in these statements. These may include, but are not limited to, changes in regulatory environment, economic developments, market conditions, interest rates, raw material prices, exchange rate fluctuations, or other factors beyond the Companys control. Your Company does not undertake any obligation to publicly update or revise any forward-looking statements in light of future events, developments, or new information, except as may be required by applicable law. Readers are advised not to place undue reliance on these statements and to exercise caution in interpreting them