WOL 3D India Ltd Management Discussions

Global Economic Overview FY 2025 26

During FY 2025 26, the global economy continued to navigate a complex environment marked by divergent growth trajectories and elevated policy uncertainty, as highlighted in the IMFs January 2025 World Economic Outlook. Despite ongoing geopolitical tensions and persistent inflationary pressures, global output expanded at 3.3%, broadly in line with the previous year and marginally below the long-term historical average of 3.7%. The resilience of advanced economies, coupled with steady momentum in select emerging markets, helped offset headwinds from energy price volatility and tighter financial conditions, thereby sustaining overall stability in global growth.

Advanced economies, particularly the United States, outperformed expectations due to strong domestic demand, prompting an upward revision in growth forecasts. In contrast, several major economies, including parts of Europe and East Asia, faced downward revisions amid weak manufacturing activity, subdued consumer confidence, and lingering energy cost burdens. Global headline inflation showed signs of moderation, projected to decline to 4.2% in 2025 and further to 3.5% in 2026, with advanced economies expected to return to target levels earlier than emerging markets. However, renewed inflationary pressures and policy-generated disruptions remain key risks that could interrupt the disinflation process and delay monetary easing. For emerging markets such as India, these dynamics imply both opportunities from resilient global demand and challenges from elevated financing costs and commodity price volatility, which remain relevant for SMEs in the infrastructure and EPC sector. Financial markets during FY 2025-26 responded positively to the anticipated pivot in central bank policies, resulting in eased financial conditions, rising equity valuations, buoyant capital flows to emerging markets (excluding China), and restored market access for several low-income and frontier economies. At the same time, the IMF cautioned that medium-term risks remain tilted to the downside, underscoring the importance of prudent fiscal management, structural reforms, and stronger multilateral cooperation to sustain growth and stability. Global growth is projected at 3.0% in 2025 and 3.1% in 2026, with headline inflation expected to moderate to 4.2% in 2025 and 3.6% in 2026, though renewed price pressures and policy-related disruptions could delay monetary easing.

Against this backdrop, cautious optimism prevailed for infrastructure and industrial sectors, particularly in India, where your Company continues to expand its footprint in electrical contracting and fire-fighting installations.

(Based on IMF World Economic Outlook January 2025 and July 2025 Update)

India-Specific Economic Overview FY 2025 26

Indias economy in FY 2025-26 continued to assert its position as the worlds fastest-growing major economy, demonstrating resilience amid global headwinds and domestic structural shifts. According to the National Statistical Office (NSO), real GDP growth is estimated at 6.4%, moderating from 8.2% in the previous fiscal year, reflecting a normalization of post-pandemic momentum and sectoral rebalancing.

Major Sectoral Trends

Agriculture and Allied Sectors: Real GVA growth improved to 3.8%, supported by favorable monsoon patterns and stronger rural demand.

Construction and Infrastructure: A standout performer, with real GVA growth of 8.6%, driven by sustained public investment and rising private sector participation in urban development projects.

Financial, Real Estate & Professional Services: Expanded at 7.3%, reflecting robust credit demand and accelerated digital transformation across service platforms.

Manufacturing: Faced headwinds from weak global demand and supply chain disruptions, leading to moderation in overall growth contribution.

Against this backdrop, Indias infrastructure and industrial sectors remain a key growth driver. Your Company continues to align with these national priorities by expanding its footprint in electrical contracting and fire-fighting installations, positioning itself to benefit from sustained investment in urban infrastructure and industrial modernization.

Inflation and Fiscal Management

Retail inflation during FY 2025-26 moderated further to 4.2%, reflecting the combined impact of easing food and fuel prices, improved supply chain conditions, and calibrated monetary policy actions. The government continued to maintain fiscal discipline while supporting growth through targeted initiatives, including sustained infrastructure expansion, credit facilitation for MSMEs, and sector-specific schemes under the Production-Linked Incentive (PLI) framework. These measures helped balance the twin objectives of macroeconomic stability and growth momentum, positioning India to navigate global uncertainties with resilience.

Geopolitical and Strategic Positioning

India consolidated its position as the fourth largest global economy in 2025, with projections indicating a GDP of USD 7.3 trillion by 2030, underpinned by the vision of Aatmanirbhar Bharat and proactive global engagement. During FY 2025-26, Indias influence in multilateral forums, trade negotiations, and strategic partnerships continued to expand, reflecting its growing role in shaping global economic and security frameworks. The Ministry of External Affairs highlighted Indias active participation in initiatives aimed at strengthening supply chain resilience, advancing climate commitments, and deepening regional connectivity.

This evolving geopolitical landscape reinforces Indias strategic positioning as a trusted partner in global commerce and infrastructure development, creating opportunities for SMEs like your Company to align with national priorities and benefit from enhanced industrial and infrastructure demand.

Industry Overview: 3D Printing in India (FY 2025 26)

Indias 3D printing industry continued its transformative trajectory in FY 2025 26, consolidating its role as a strategic enabler of advanced manufacturing. The market expanded to USD 860 million in 2025, and is projected to reach USD 5.23 billion by

2034, registering a robust CAGR of 20.8%. This growth reflects the increasing integration of additive manufacturing into mainstream industrial processes, supported by government initiatives under the National Strategy on Additive

Manufacturing and the "Make in India" campaign.

The industrys momentum is underpinned by three structural drivers:

Rapid prototyping that accelerates design-to-market cycles.

Customized production catering to healthcare, aerospace, and consumer needs.

Sustainable manufacturing solutions reducing material waste and energy consumption.

Sectoral Adoption & Applications

Automotive & Aerospace Lightweight metal components, tooling, and design iteration are now integral to product development, reducing costs and enhancing efficiency.

Healthcare Customized implants, prosthetics, dental models, and surgical guides are improving patient outcomes and procedural precision, with adoption expanding across major medical hubs.

Construction 3D-printed homes and infrastructure projects are scaling up, reducing build times from months to weeks, and minimizing material waste.

Education & Research Institutions are embedding additive manufacturing into STEM curricula, fostering innovation and skill development, while R&D hubs in Bengaluru and Pune are driving ecosystem growth.

Policy & Ecosystem Drivers (FY 2025 26)

Indias additive manufacturing ecosystem in FY 2025 26 was strengthened by proactive policy measures, rising foreign investment, and a dynamic startup base all of which created a favorable environment for WOL 3Ds expansion.

Make in India & NSAM The Governments National Strategy on Additive Manufacturing (NSAM) continued to advance its targets of capturing 5% of the global AM market and generating 100,000 jobs by 2025..

FDI Momentum Manufacturing-related FDI inflows maintained strong growth in 2025 26, reflecting sustained investor confidence in Indias industrial innovation. This trend enhances ability to attract global collaborations, strengthen export potential, and integrate advanced technologies into its product portfolio.

Startup Ecosystem With over 1,000 domestic players active in the sector,

Indias startup ecosystem continued to drive indigenous innovation and expand access to affordable 3D printing solutions.

Sustainability & Strategic Outlook

Indias 3D printing industry in FY 2025 26 aligned closely with national sustainability priorities, reinforcing additive manufacturing as a key enabler of the circular economy. By minimizing material waste, enabling energy-efficient production, and supporting localized manufacturing, 3D printing strengthened the countrys commitment to reducing carbon footprints and enhancing industrial resilience.

Strategic Outlook is Expansion of metal additive manufacturing in aerospace and defence to reduce emissions and improve efficiency. Growth of biocompatible and eco-friendly materials in healthcare and consumer goods. Integration of AI-driven design optimization to further reduce energy consumption. Strengthening of policy frameworks to incentivize sustainable adoption across SMEs and large enterprises.

Company Overview

The 3D printing industry in India advanced significantly during FY 2025 26, driven by technological progress, wider adoption across automotive, aerospace, healthcare, education, and consumer sectors, and supportive government initiatives under

"Make in India" and "Digital India." Additive manufacturing has become a central pillar of Industry 4.0, moving decisively beyond prototyping into end-use manufacturing. This evolving environment created opportunities in customized healthcare and education solutions, sustainable manufacturing practices, and industrial and consumer innovation, while also presenting challenges such as intensifying competition, rapid technology shifts, supply chain volatility, and foreign exchange risks. Against this backdrop, WOL 3D India Limited strengthened its position as a leading player by broadening its product portfolio, deepening distribution networks, and enhancing customer engagement through innovative offerings and reliable after-sales service. The Company established a strong presence across metropolitan and industrial regions, serving enterprises, institutions, and individual innovators, and reinforced its foundation for sustainable growth by partnering with global technology providers and investing in localized service infrastructure.

Financial Overview

During the financial year 2025 26, the Company registered a robust growth in standalone revenue, reaching 97.70 Crore as compared to 48.27 Crore in the previous financial year reflecting a year-on-year increase of approximately 102 %. This performance highlights the Companys operational strength and strategic execution across key verticals. However, the Profit After Tax ("PAT") for FY 2025 26 stood at 6.67 Crore, as against 5.59 Crore in FY 2024 25.

Key Ratio Outlook for FY 2024 25

Please refer to Note no. 31 of the Financial Statements.

Business Overview

WOL 3D India Limited continued to strengthen its pioneering role in Indias additive manufacturing landscape during FY 2025 26, evolving from a distribution-focused company into a comprehensive ecosystem provider of 3D printing technologies. Headquartered in Mumbai, the Company operates at the intersection of advanced manufacturing and materials innovation, offering an integrated portfolio that now spans industrial-grade FDM and resin 3D printers, high-precision scanners, laser engravers, specialized filaments and resins, and consumer-friendly 3D pens and accessories. Over the year, WOL 3D expanded its reach through enhanced distribution networks, deeper partnerships with global technology providers, and localized service infrastructure, ensuring accessibility across metropolitan, industrial, and educational hubs. By combining product innovation with reliable after-sales support, the Company has consolidated its position as a trusted enabler of Indias additive manufacturing revolution, serving enterprises, institutions, and individual innovators with solutions that embody sustainability, customization, and technological advancement.

Market Position & Capabilities

In FY 2025 26, WOL 3D India Limited reinforced its position as a leading enabler of digital fabrication by extending its reach across education, healthcare, prototyping, industrial design, and consumer innovation. The Company strengthened its market presence by scaling its consumer offerings such as Vinglits toys and kids-safe 3D pens, which are now available through quick-commerce platforms and retail chains nationwide. Its robust e-commerce presence, anchored on platforms like Amazon India, Flipkart, and Blinkit, ensured accessibility to cutting-edge solutions across metropolitan and tier-II cities, while strategic partnerships with global technology providers enhanced product diversity and reliability. By combining industrial-scale capabilities with consumer-friendly innovation, WOL 3D has consolidated its role as a trusted ecosystem player, delivering sustainable, customized, and technologically advanced solutions to enterprises, institutions, and individual innovators across India.

Growth & Financial Snapshot

During FY 2025 26, WOL 3D India Limited delivered strong operational and financial performance, consolidating its leadership in the additive manufacturing sector. The Company recorded operating revenue of 977 million, more than doubling from the previous year, supported by robust demand across industrial, educational, and consumer segments. Profit after tax rose to 66.6 million, reflecting a 19% year-on-year increase, while EBITDA stood at 87.9 million. Though margins moderated due to front-loaded investments in new product verticals and experience centres, fundamentals remained resilient, with profitability expected to strengthen as economies of scale take effect. On the capital markets front, WOL 3Ds equity continued to attract investor interest, with its NSE Emerge listing providing visibility and credibility. The Companys stock demonstrated healthy momentum during the year, supported by expansion initiatives, consumer diversification, though liquidity and participation trends warrant ongoing monitoring in light of broader market volatility.

Strategic Vision

In FY 2025 26, WOL 3D India Limited sharpened its strategic vision to democratize additive manufacturing across India by evolving into a holistic ecosystem provider. The Company focused on expanding its product and service portfolio to include industrial-scale solutions alongside consumer-friendly innovations, ensuring accessibility for enterprises, institutions, and individual creators. Strengthening after-sales support and training programs remained a priority, with new experience centres and localized service hubs enhancing customer confidence and adoption. Educational outreach and B2B partnerships were scaled further, positioning WOL 3D as a trusted partner in advancing awareness and integration of 3D printing technologies into mainstream industrial and academic practices. By combining innovation, accessibility, and sustainability, the Company reinforced its role as a catalyst for Indias additive manufacturing revolution and laid the groundwork for long-term growth in both domestic and global markets.

Regulatory & Sectoral Alignment

In FY 2025 26, WOL 3D India Limited strengthened its alignment with Indias national manufacturing and digital transformation priorities. Operating within the frameworks of "Make in India" and "Digital India," the Company advanced the governments vision of fostering innovation, reducing import dependency, and building indigenous manufacturing capabilities. By expanding its product ecosystem, and investing in localized service infrastructure, WOL 3D reinforced its role as a trusted partner in Indias additive manufacturing journey. The Companys initiatives in sustainable filament production, educational outreach, and consumer innovation directly supported national goals of enhancing technological self-reliance and promoting Industry 4.0 adoption across sectors.

Human Resource Development and Industrial Research FY 2025 26

In FY 2025 26, WOL 3D India Limited continued to uphold its Human-First philosophy, placing people at the center of every strategic and operational decision. The Company recognized that organizational resilience and innovation depend on a workforce that is skilled, engaged, and future-ready, and accordingly advanced its HR and research agenda to meet the evolving demands of the additive manufacturing industry. The year saw a sharper focus on competency-based recruitment for high-impact roles in engineering, digital infrastructure, compliance, and industrial design, supported by structured onboarding and mentorship programs that ensured seamless cultural integration. Skill acceleration initiatives were broadened to include certifications in predictive maintenance, advanced digital monitoring, fire safety, and electrical diagnostics, strengthening technical depth across teams.

The Learning & Development framework was further expanded through cross-functional training modules that fostered versatility and leadership readiness, alongside collaborations with technical institutes and industry bodies to integrate emerging research, ESG practices, and global standards. Performance-linked learning incentives encouraged accountability and innovation, reinforcing a culture of continuous improvement.

Through these initiatives, WOL 3D India Limited strengthened its talent pipeline, research integration, and execution capability, ensuring that human capital remains the cornerstone of sustainable growth and industrial leadership in the rapidly evolving 3D printing sector.

Internal Control and Adequacy FY 2025 26

In FY 2025 26, WOL 3D India Limited further strengthened its internal control framework to ensure operational integrity, regulatory compliance, and strategic decision-making. The Companys systems continued to safeguard assets against unauthorized use or disposal, while maintaining rigorous authorization, documentation, and audit trails across all transactions.

During the year, internal processes were enhanced through digitization of procurement, inventory management, and vendor oversight, supported by real-time compliance dashboards that enabled continuous monitoring of statutory obligations and internal KPIs. Cross-functional oversight was deepened, fostering stronger coordination between finance, operations, and compliance teams.

The Companys internal control mechanisms were independently reviewed and validated by statutory auditors, affirming their adequacy, reliability, and scalability. External consultants with expertise in governance and risk management were also engaged to benchmark practices against evolving industry standards and regulatory developments.

Risk mitigation remained a priority, with the Internal Audit function operating independently and reporting directly to the Audit Committee and the Board of Directors. Audit findings were reviewed quarterly, with corrective actions tracked through structured follow-up mechanisms. The whistleblower and grievance redressal systems were further strengthened, reinforcing transparency, ethical conduct, and stakeholder confidence. These initiatives reflect WOL 3Ds commitment to maintaining a resilient control environment, capable of adapting to business growth, regulatory changes, and stakeholder expectations.

Workplace Safety and EHS Commitment

Our Environment, Health, and Safety (EHS) function has been further strengthened to meet evolving regulatory and operational demands. In FY 2024 25, we have:

Digitized safety audits and compliance tracking, improving visibility and accountability

Introduced behavior-based safety (BBS) programs, promoting proactive risk identification

Conducted quarterly safety drills and refresher trainings, enhancing emergency preparedness

These initiatives reflect our unwavering commitment to employee well-being, regulatory compliance, and the cultivation of a safety-first culture across all project sites and offices.

Industrial Research and Innovation

We are actively investing in industrial research collaborations to enhance system design, energy efficiency, and lifecycle performance. Our focus areas include:

Smart diagnostics for electrical systems, enabling predictive maintenance

Fire safety innovation, including sensor-based alert systems and sustainable suppression technologies

Process optimization studies, aimed at reducing installation time and improving cost-efficiency

By integrating human capital development with industrial research, we aim to build a future-ready organization that delivers excellence, safety, and innovation at scale.

Cautionary Statement FY 2025 26

This report contains forward-looking statements relating to anticipated future events, financial outcomes, and operational milestones of WOL 3D India Limited. These statements are based on certain assumptions and are subject to risks and uncertainties. There is a significant possibility that actual results may differ materially from those expressed or implied, owing to factors beyond the Companys control. As outlined in the Risk, Concerns, and Mitigation section, WOL 3D encounters various regulatory, environmental, and business risks in its operations. The Company actively pursues prevention and mitigation strategies to minimize potential impacts on performance. Readers are therefore advised to exercise caution and avoid placing undue reliance on forward-looking statements, as several external and internal factors could lead to variances between projections and actual outcomes.

Accordingly, this document is subject to the disclaimer and is qualified in its entirety by the assumptions, qualifications, and risk factors detailed in WOL 3Ds Annual Report for FY 2025 26, as discussed in the Management Discussion and Analysis section.