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 2025-26. 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 remained resilient during 2025 despite heightened trade policy uncertainty and geopolitical tensions. Global GDP grew by 3.4%, supported by sustained investments in artificial intelligence (AI) and technology, which helped offset the impact of tariffs and supply chain disruptions. Inflation moderated to 4.1%, while financial conditions remained broadly supportive.

Advanced economies recorded moderate growth, led by the United States, while emerging markets outperformed, with India and China remaining key growth drivers. Global trade remained stable, supported by strong technology exports despite ongoing tariff-related uncertainties.

Outlook

Global growth is projected to remain broadly stable at around 3.1% in 2026, supported by continued AI-driven investments and favourable financial conditions. However, the outlook remains subject to significant downside risks, including trade policy uncertainty, geopolitical tensions in West Asia, supply chain disruptions, energy market volatility, and tighter export controls on critical minerals. While technology investments are expected to provide resilience, elevated policy uncertainty and geopolitical developments may continue to weigh on global trade, inflation, and investment sentiment.

Impact of Geopolitical Developments

Escalating tensions in West Asia have increased uncertainty across global markets, disrupting energy supplies, trade routes, and supply chains. Higher energy prices, logistics challenges, and shortages of critical industrial inputs have contributed to increased operating costs and inflationary pressures across industries. These developments are expected to continue influencing global business conditions and economic activity in the near term.

Source: WEO (IMF)

Indian Economy Outlook

India continues to remain one of the worlds fastest-growing major economies, supported by resilient domestic demand, strong investment activity, and ongoing structural reforms. However, the latest GDP estimates indicate that India is currently the 6th largest economy in the world with a nominal GDP of about USD 4.15 trillion in 2026. The country is expected to retain its strong growth momentum and may regain a higher global ranking over the medium term as economic expansion continues. (Source: PIB-GOIJ

Looking ahead, Indias growth is expected to remain robust, with most multilateral institutions projecting real GDP growth in the range of 6.3% to 6.5% over the medium term, significantly outpacing other major economies. Growth is expected to be supported by rising private investment, improving manufacturing competitiveness, expanding services exports, resilient rural and urban demand, and continued public investment in infrastructure. The countrys favourable demographics, increasing formalisation of the economy, rapid digital adoption, and ongoing structural reforms are expected to further enhance productivity and strengthen investment activity. (Source: IMFJ

Inflation is expected to remain broadly within the Reserve Bank of Indias target range, supported by prudent monetary policy and easing food price pressures, although volatility in global crude oil prices, commodity markets, and adverse weather conditions could create intermittent inflationary pressures. The banking sector remains well-capitalised, credit growth continues to support economic activity, and improving corporate balance sheets are expected to encourage higher private capital expenditure. (Source: Reuters)

Despite its strong fundamentals, Indias economic outlook remains subject to external risks, including geopolitical tensions in West Asia, global trade policy uncertainty, supply chain disruptions, fluctuations in energy prices, and slowing global demand. These factors may impact exports, input costs, and inflation in the near term. Nevertheless, supported by sound macroeconomic fundamentals, continued policy reforms, and resilient domestic demand, India remains well positioned to sustain healthy long-term economic growth and reinforce its position as a leading global investment destination. (Source: OECD)

INDUSTRY STRUCTURE AND DEVELOPMENTS

Indias renewable energy sector continued its strong growth trajectory during FY 2026, reinforcing the countrys position as one of the worlds leading renewable energy markets. Supported by favourable government policies, increasing investments, declining technology costs, and rising electricity demand, the sector witnessed record capacity additions across solar, wind, and energy storage. As of FY 2026, Indias installed non-fossil fuel power capacity reached approximately 283 GW, including 274.7 GW of renewable energy capacity, comprising around 150.3 GW of solar, 56.1 GW of wind, 51.4 GW of large hydro, and the balance from bioenergy and small hydro. India continues to rank among the top three countries globally in renewable energy installed capacity. (Source: PIB-GOI)

FY 2026 marked a landmark year for the sector, with the country adding a record over 50 GW of renewable energy capacity, led by approximately 44 GW of solar and 6 GW of wind installations. This significant expansion was driven by the commissioning of utility-scale projects, rapid growth in rooftop solar installations under the PM Surya Ghar initiative, and the continued execution of projects awarded under the Governments annual renewable energy bidding programme. Renewable energy now constitutes an increasingly significant share of Indias power generation mix, reflecting the countrys accelerated transition towards cleaner sources of energy. (Source: TOI)

The renewable energy ecosystem has also witnessed substantial progress in domestic manufacturing. Backed by the Production-Linked Incentive (PLI) Scheme and the Approved List of Models and Manufacturers (ALMM), Indias integrated manufacturing capacity for solar modules, cells, wafers, and ancillary components continues to expand, reducing dependence on imports and strengthening supply chain resilience. Simultaneously, the growing deployment of Battery Energy Storage Systems (BESS), pumped hydro storage, and hybrid renewable projects is supporting greater grid flexibility and enabling higher renewable energy penetration. (Source: PRS)

Despite sustained momentum, the industry continues to face challenges relating to land acquisition, transmission connectivity, project execution timelines, supply chain constraints, and financing costs. However, continued policy support, technological advancements, improving domestic manufacturing capabilities, and rising corporate demand for clean energy are expected to sustain long-term industry growth. These developments provide significant opportunities for engineering, procurement, and construction (EPC) companies with strong project execution capabilities, technical expertise, and integrated service offerings.

Government Initiatives

The Government of India continues to drive the renewable energy sector through a robust policy framework aimed at achieving 500 GW of non-fossil fuel capacity by 2030 and net-zero emissions by 2070. Key initiatives, including the Production Linked Incentive (PLI) Scheme for high-efficiency solar PV modules, PM Surya Ghar: Muft Bijli Yojana, and the National Green Hydrogen Mission, are strengthening domestic manufacturing, accelerating rooftop solar adoption, and promoting green hydrogen production. Central agencies such as SECI, NTPC, and NHPC continue to award large-scale renewable energy projects through competitive bidding, ensuring a healthy project pipeline.

The Government has also prioritised investments in Green Energy Corridors, interstate transmission networks, and Battery Energy Storage Systems (BESS) to facilitate large-scale renewable energy integration and improve grid reliability. In the Union Budget FY 2026-27, the allocation to the Ministry of New and Renewable Energy (MNRE) was increased by around 30% to Rs.32,915 crore, with a significant focus on rooftop solar, energy storage, domestic manufacturing, and transmission infrastructure. These initiatives are expected to sustain long-term growth across the renewable energy value chain and create significant opportunities for EPC companies supporting Indias clean energy transition. (Source: PRS)

OUR BUSINESS

Your Company was incorporated as Winsol Engineers Private Limited on 30 December 2015 under the provisions of the Companies Act, 2013, and was subsequently converted into a public limited company under the name Winsol Engineers Limited on 21 December 2023. Since its inception, the Company has established itself as a trusted engineering partner in Indias rapidly growing renewable energy sector, delivering reliable and integrated project execution solutions.

Headquartered in Jamnagar, Gujarat, the Company is an integrated Engineering, Procurement, Construction and Commissioning (EPCC) company specialising in Balance of Plant (BoP) solutions for wind and solar power projects. Its services include civil and electrical works, foundation construction, substation development, Right of Way (RoW) services, cabling, transmission connectivity, and comprehensive Operations & Maintenance (O&M) solutions. Led by its Promoters, Mr. Ramesh Jivabhai Pindariya and Mr. Kishor Jivabhai Pindariya, who collectively possess over three decades of industry experience, the Company has built strong execution capabilities, long-standing customer relationships, and a reputation for delivering quality projects on time. Backed by an experienced management team and robust technical expertise, the Company is well-positioned to capitalise on the growing opportunities in Indias renewable energy sector. Committed to operational excellence, quality, safety, and sustainability, the Company has implemented internationally recognised management systems and is certified under ISO 9001:2015 (Quality Management System), ISO 14001:2015 (Environmental Management System), and ISO 45001:2018 (Occupational Health and Safety Management System). Backed by strong technical expertise, disciplined project execution, and a customer-centric approach, the Company is well-positioned to capitalise on the growing opportunities in Indias renewable energy sector while creating sustainable value for its stakeholders.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

The Company operates in a single reportable business segment in accordance with Indian Accounting Standard (Ind AS) 108 - Operating Segments and is engaged in providing integrated Engineering, Procurement, Construction and Commissioning (EPCC) solutions for the renewable energy sector.

The Companys operations are primarily focused on two business verticals: Balance of Plant (BoP) Solutions and Operations & Maintenance (O&M) Services.

Under the BoP vertical, the Company undertakes engineering and execution of critical infrastructure for wind and solar power projects, including foundation works, civil and electrical works, substation development, Right of Way (RoW) services, cabling, transmission connectivity, and other associated infrastructure.

The O&M vertical offers preventive and corrective maintenance, SCADA-based remote monitoring, technical support, inspections, and skilled manpower services, ensuring improved plant availability, operational efficiency, and long-term asset reliability.

The Company has established itself as a reliable execution partner for leading renewable energy developers by delivering projects with a strong focus on quality, safety, timely execution, and cost efficiency. Its integrated service offerings enable customers to benefit from end-to-end project execution, from infrastructure development through commissioning and lifecycle maintenance, thereby fostering long-term customer relationships and repeat business opportunities.

With Indias renewable energy sector witnessing sustained investments and an expanding project pipeline, the Company is well-positioned to capitalise on emerging opportunities. Backed by experienced leadership, technical expertise, robust execution capabilities, and a customer-centric approach, the Company remains committed to supporting the nations clean energy transition while creating sustainable value for all its stakeholders.

OPPORTUNITIES AND THREATS

The Companys business operates in a dynamic and evolving renewable energy landscape, presenting significant growth opportunities while also exposing it to certain industry-specific and macroeconomic risks. The key opportunities and threats are as follows:

Opportunities

Strong policy support towards achieving 500 GW of non-fossil fuel capacity by 2030, driving sustained investments in renewable energy infrastructure.

Robust pipeline of utility-scale solar, wind, hybrid, and Battery Energy Storage System (BESS) projects, creating significant opportunities for EPC and O&M service providers.

Continued expansion of domestic manufacturing through the Production Linked Incentive (PLI) Scheme, reducing import dependence and strengthening the renewable energy supply chain.

Rising demand for Green Open Access, Commercial & Industrial (C&I) renewable projects, and corporate decarbonisation initiatives driven by ESG commitments.

Increasing investments in transmission infrastructure, including Green Energy Corridors and grid modernisation, supporting higher renewable energy integration.

Growing private sector participation and foreign investments, supported by favourable regulatory policies and Indias strong long-term renewable energy outlook.

Increasing focus on long-term asset performance and reliability, driving demand for integrated Operations & Maintenance (O&M) services.

Threats

Volatility in commodity prices, crude oil costs, and foreign exchange rates may impact project costs and profitability.

Geopolitical tensions and global supply chain disruptions could affect the availability and timely procurement of critical equipment and materials.

Delays in land acquisition, statutory approvals, transmission connectivity, and project execution may impact project timelines.

Intensifying competition in the EPC sector may lead to pricing pressures and margin compression.

Rapid technological advancements require continuous investment in technical capabilities, innovation, and skilled workforce development.

Adverse weather conditions and climate-related risks may affect project execution and operational performance of renewable energy assets.

Indias renewable energy sector is expected to witness sustained growth, supported by favourable government policies, increasing investments, expanding transmission infrastructure, and the countrys commitment to achieving 500 GW of nonfossil fuel capacity by 2030. These developments are expected to create significant opportunities across the renewable energy value chain, particularly for engineering, procurement, construction, and operations & maintenance service providers.

The Company remains focused on strengthening its position in the renewable energy EPC sector by leveraging its technical expertise, execution capabilities, and customer-centric approach. It continues to emphasise operational excellence through efficient project execution, prudent cost management, quality assurance, technology adoption, and workforce development to enhance operational efficiency and maintain sustainable profitability.

Going forward, the Company intends to expand its presence across the renewable energy value chain, strengthen long-term customer relationships, and capitalise on the growing demand for Balance of Plant (BoP) and Operations & Maintenance (O&M) services. Backed by experienced leadership, a healthy project pipeline, and a strong execution track record, the Company is well-positioned to create sustainable value for its stakeholders while contributing to Indias clean energy transition.

RISK AND CONCERNS

The Company operates in a dynamic business environment and is exposed to various risks arising from changes in economic conditions, regulatory policies, market competition, technological developments, and geopolitical events. Key business risks include project execution delays, fluctuations in raw material and commodity prices, supply chain disruptions, changes in government policies and tender conditions, availability of skilled manpower, and evolving environmental and regulatory requirements.

The Company has established a robust risk management framework to identify, assess, monitor, and mitigate risks across its operations. The framework is supported by well-defined internal controls, periodic risk assessments, prudent procurement practices, and a strong focus on quality, safety, and compliance. The management and the Audit Committee regularly review key business risks and the effectiveness of mitigation measures to ensure timely response to emerging challenges.

While certain risks remain beyond the Companys control, its diversified project portfolio, disciplined execution capabilities, experienced management team, and customer-centric approach enhance its ability to effectively manage uncertainties and support sustainable long-term growth.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has established an adequate system of internal controls commensurate with the size, scale, and complexity of its operations. These controls are designed to safeguard assets, ensure the accuracy and reliability of financial reporting, promote operational efficiency, and ensure compliance with applicable laws, regulations, and internal policies.

The internal control framework is supported by well-defined policies, standard operating procedures, and periodic internal audits. The internal auditors conduct regular reviews of key business processes and internal controls, and their observations and recommendations are placed before the Audit Committee for review. The Audit Committee monitors the implementation of corrective actions and periodically evaluates the effectiveness of the internal control systems to ensure continual improvement and sound corporate governance.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

				(Rs. in Lakhs)
Particulars	Standalone-Year Ended	Consolidated-Year Ended
	31/03/2026	31/03/2025	31/03/2026	31/03/2025
Revenue From Operations	13647.94	11057.40	13656.58	11141.85
Other Income	64.03	6.54	64.03	6.54
Total Income	13711.97	11063.95	13720.61	11148.39
Less: Operating expenditure before Finance Cost, Depreciation, and amortization	11211.92	9369.80	11203.20	9391.32
Earnings before Finance cost, depreciation and amortization (EBITDA)	2500.05	1694.15	2517.41	1757.07
Less: Depreciation	97.26	38.97	97.26	38.97
Less: Finance Cost	400.17	96.27	403.08	99.75
Profit Before Tax	2002.62	1558.91	2017.07	1618.35
Less: Current Tax	420.45	429.10	425.29	444.06
Less: Deferred tax Liability (Asset)	152.39	(4.40)	152.39	(4.39)
Profit After Tax	1429.78	1134.21	1439.39	1178.68

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS

The Company firmly believes that its employees are its greatest asset and a key enabler of sustainable growth. It remains committed to fostering a high-performance, inclusive, and values-driven work culture that promotes innovation, accountability, collaboration, and continuous learning.

During the year under review, the Company continued to invest in strengthening its human capital through structured learning and development programmes, technical and functional training, leadership development initiatives, and employee engagement activities. Focus was also placed on enhancing workplace safety, strengthening organizational capabilities, and nurturing talent to meet the evolving requirements of the renewable energy sector. A transparent performance management system and a culture of continuous feedback support employee development while aligning individual performance with organizational objectives.

As on 31 March 2026, the Company had a total workforce of 323 (Three Hundred Twenty-Three) employees, reflecting the growth in its operations and expanding project execution capabilities. The Company continues to attract, develop, and retain skilled professionals by providing a safe, equitable, and growth-oriented work environment. Industrial relations remained cordial throughout the year, and there were no significant disruptions to operations.

The Company will continue to strengthen its human capital through focused talent acquisition, capability enhancement, succession planning, and employee well-being initiatives. By investing in its people and fostering a culture of excellence, the Company aims to build a future-ready workforce capable of supporting its long-term strategic objectives and delivering sustainable value to all stakeholders.

KEY FINANCIAL RATIOS

Ratio	Figures As At 31.03.2026	Figures As At 31.03.2025	% Change From Last Year	Explanation for Change in Ratio (for more than 25% in comparison with last year)
Current Ratio	1.70	2.54	(33.10)	The decline in the current ratio is attributable to an increase in short-term liabilities, resulting in a relatively lower liquidity position as compared to the previous year. Further, the significant change in the ratio is also due to the regrouping of the current maturities of long-term borrowings under short-term borrowings in the current year, which has consequently increased the current liabilities and impacted the current ratio.
Debt-Equity Ratio	1.08	0.33	224.82	The debt-equity ratio increased from 0.33 in the previous year to 1.08 in the current year, primarily due to increased borrowings during the year.
Debt Service Coverage Ratio	(0.36)	0.97	(137.02)	The Debt Service Coverage Ratio has decreased from 0.97 to (0.36), mainly on account of higher finance costs during the year and an increase in capital expenditure, while the repayment obligations remained at similar levels.
Interest Coverage Ratio	6.25	17.19	(63.66)	The Interest Coverage Ratio decreased from 17.19 in the previous year to 6.25 in the current year primarily due to increase in finance costs, resulting in lower Interest Coverage Ratio.
Return on Equity Ratio	0.26	0.34	(25.63)	The Return on Equity has moderated to 0.26 from 0.34, mainly due to a significant increase in shareholders equity, despite growth in net profit to Rs.1,429.78 lacs.
Inventory turnover ratio	1.90	3.05	(37.87)	The decrease in the Inventory Turnover Ratio is primarily attributable to a significant increase in average inventory during the year. Further, considering that the Company is engaged in both trading and service activities, and the cost of goods sold includes the effect of changes in Work-in-Progress (WIP), the increase in average inventory exceeded the corresponding increase in the cost of goods sold, resulting in a lower Inventory Turnover Ratio.
Trade Receivables turnover ratio	3.25	3.72	(12.52)	-
Trade payables turnover ratio	8.43	9.65	(12.58)	-
Net capital turnover ratio	1.84	3.09	(40.32)	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	10.48	10.26	2.13	-
Operating Profit Margin	14.67	14.10	4.08	-
Return on Capital employed	0.32	0.46	(29.81)	ROCE decreased from 0.46 to 0.32 during the year, primarily due to a significant increase in average capital employed compared to the growth in EBIT. Consequently, the return generated on capital employed was lower than the previous year.

This report contains forward-looking statements that reflect 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.

Registered office:	For and on behalf of Board of Directors
Shop No. 301, Madhav Commercial		Winsol Engineers Limited
Complex, Near Crystal Mall, Khodiyar Colony, Jamnagar, Gujarat, India, 361006.		CIN:L40100GJ2015PLC085516
	Sd/-	Sd/-
	Ramesh Jivabhai Pindariya	Amri Ramesh Pindariya
Place: Jamnagar	Chairman Cum Managing Director	Whole Time Director
Date: September 01, 2026	DIN:07322863	DIN:07322896