ADROIT INDUSTRIES (INDIA) LTD Q2 CONCALL: FY27 REVENUE ASPIRATION OF ₹180 CR, FY28 TARGET OF ₹250 CR, EBITDA MARGIN GUIDANCE OF 28–32%, MANUFACTURING CAPACITY EXPANSION & GLOBAL CUSTOMER ACQUISITION

• MANAGEMENT OUTLINED AN FY27 REVENUE ASPIRATION OF APPROXIMATELY ₹180 CR, SUPPORTED BY NEW CUSTOMER ADDITIONS, HIGHER-VALUE PRODUCTS & EXPANDING MANUFACTURING CAPACITY • MANAGEMENT ASPIRES TO ACHIEVE APPROXIMATELY ₹250 CR REVENUE IN FY28, SUBJECT TO SUCCESSFUL CAPACITY EXPANSION, CUSTOMER CONVERSION & PRODUCTION RAMP-UP • MANAGEMENT CLARIFIED THAT THE ₹250 CR FY28 REVENUE ASPIRATION IS LINKED TO EXPANDED CAPACITY POTENTIAL & DOES NOT REPRESENT CONTRACTED SALES • MANAGEMENT EXPECTS EBITDA MARGINS TO REMAIN AROUND 30% ± 2%, EQUIVALENT TO AN APPROXIMATELY 28–32% RANGE • MANAGEMENT EXPECTS HIGHER-VALUE PROPELLER SHAFT ASSEMBLIES, EXPORT SALES & OPERATING EFFICIENCIES TO SUPPORT MARGIN SUSTAINABILITY • MANAGEMENT PLANS TO DOUBLE PITHAMPUR MACHINING & ASSEMBLY CAPACITY FROM APPROXIMATELY 9 LAKH TO 18 LAKH UNITS ANNUALLY • MANAGEMENT EXPECTS THE EXPANDED PITHAMPUR CAPACITY TO BECOME LARGELY OPERATIONAL DURING Q4 FY27, SUBJECT TO MACHINERY INSTALLATION & COMMISSIONING • MANAGEMENT PLANS TO EXPAND DEWAS FORGING CAPACITY FROM APPROXIMATELY 3,000 TO 5,500 TONNES ANNUALLY, REPRESENTING AN INCREASE OF AROUND 83% • MANAGEMENT TARGETS COMMISSIONING OF THE EXPANDED DEWAS FORGING CAPACITY DURING Q1 FY28 • MANAGEMENT TARGETS FULL RAMP-UP OF THE EXPANDED MANUFACTURING PLATFORM BY Q4 FY28, SUBJECT TO CUSTOMER DEMAND & EXECUTION • MANAGEMENT AIMS TO ADD APPROXIMATELY 200 NEW CUSTOMERS OVER THE NEXT 2–3 QUARTERS, SUPPORTING REVENUE DIVERSIFICATION & ORDER GROWTH • MANAGEMENT EXPECTS NEW CUSTOMER ACQUISITION TO BE SUPPORTED BY ITS BROAD PRODUCT PORTFOLIO, PRECISION ENGINEERING CAPABILITIES & INTERNATIONAL DISTRIBUTION NETWORK • MANAGEMENT EXPECTS MORE INDUSTRIAL & DEFENSE PRODUCTS CURRENTLY UNDER TESTING TO ENTER COMMERCIAL PRODUCTION DURING FY28 • MANAGEMENT INDICATED THAT NEW PRODUCT QUALIFICATION GENERALLY REQUIRES APPROXIMATELY 6–12 MONTHS, PARTICULARLY FOR DEFENSE APPLICATIONS • MANAGEMENT EXPECTS INDUSTRIAL SHAFT APPLICATIONS IN STEEL PLANTS, PAPER MILLS, MINING, CONSTRUCTION & HEAVY EQUIPMENT TO PROVIDE ADDITIONAL GROWTH OPPORTUNITIES • MANAGEMENT EXPECTS DEFENSE APPLICATIONS, INCLUDING MILITARY TRUCK COMPONENTS, TO EXPAND GRADUALLY AS PRODUCT TESTING & CUSTOMER APPROVALS PROGRESS • MANAGEMENT DID NOT PROVIDE SPECIFIC DEFENSE REVENUE GUIDANCE, AS THE SEGMENT CURRENTLY CONTRIBUTES A VERY SMALL SHARE OF SALES • MANAGEMENT PLANS TO STRENGTHEN ITS PRESENCE IN THE UNITED STATES & SOUTH AMERICA, EXCLUDING BRAZIL, THROUGH CUSTOMER ACQUISITION & LOCAL DISTRIBUTION • MANAGEMENT IDENTIFIED MEXICO, COLOMBIA, ECUADOR, PERU, CHILE & OTHER LATIN AMERICAN MARKETS AS POTENTIAL GROWTH OPPORTUNITIES • MANAGEMENT IS EVALUATING EUROPEAN MARKET EXPANSION DURING FY28, SUBJECT TO CUSTOMER TESTING, PRODUCT QUALIFICATION & COMMERCIAL ACCEPTANCE • MANAGEMENT EXPECTS ITS US SUBSIDIARY, ESTABLISHED IN APRIL 2026, TO SUPPORT HIGHER-MARGIN LOCAL SALES THROUGH WAREHOUSING & INVENTORY AVAILABILITY • MANAGEMENT IS DEVELOPING A LOCAL SALES & INVENTORY PLATFORM IN MEMPHIS TO IMPROVE CUSTOMER SERVICE & DISTRIBUTION EFFICIENCY IN THE US • MANAGEMENT EXPECTS INCREASED DOMESTIC OEM BUSINESS TO SUPPORT WORKING CAPITAL EFFICIENCY, WITH TYPICAL CUSTOMER PAYMENT TERMS OF APPROXIMATELY 45–60 DAYS • MANAGEMENT AIMS TO REDUCE THE WORKING CAPITAL CYCLE FROM APPROXIMATELY 248–249 DAYS TOWARD 200–230 DAYS OVER TIME • MANAGEMENT EXPECTS WORKING CAPITAL IMPROVEMENT TO DEPEND ON INVENTORY OPTIMIZATION, CUSTOMER MIX & MORE EFFICIENT INTERNATIONAL DISTRIBUTION • MANAGEMENT BELIEVES FUTURE EXPANSION CAN BE MANAGED WITHOUT ADDITIONAL EQUITY FUNDRAISING, ALTHOUGH A DETAILED FUNDING FORECAST WAS NOT PROVIDED • MANAGEMENT IS EXPLORING IN-HOUSE MANUFACTURING OF UNIVERSAL JOINTS, WHICH ARE CURRENTLY PROCURED FROM EXTERNAL SUPPLIERS • MANAGEMENT TARGETED PROGRESS ON ACQUIRING UNIVERSAL JOINT MANUFACTURING TECHNOLOGY BY NOVEMBER 2026, WITH POTENTIAL LONG-TERM MARGIN BENEFITS • MANAGEMENT DID NOT PROVIDE A QUANTIFIED EBITDA MARGIN BENEFIT OR CONFIRMED COMMERCIALIZATION TIMELINE FOR UNIVERSAL JOINT INTEGRATION • MANAGEMENT CONFIRMED THAT MACHINERY WORTH APPROXIMATELY ₹5 CR HAD ALREADY BEEN PURCHASED & COMMISSIONED • MANAGEMENT INDICATED THAT ADDITIONAL MACHINERY ORDERS WORTH APPROXIMATELY ₹30 CR HAD BEEN PLACED TO SUPPORT CAPACITY EXPANSION • MANAGEMENT DID NOT PROVIDE A RELIABLY TRANSCRIBED TOTAL EXPANSION CAPEX FIGURE OR A DETAILED PROJECT-WISE FUNDING SCHEDULE • MANAGEMENT'S FY31 REVENUE VISION COULD NOT BE RELIABLY ESTABLISHED FROM THE TRANSCRIPT & SHOULD NOT BE TREATED AS CONFIRMED GUIDANCE • Q2 FY27 REVENUE INCREASED APPROXIMATELY 25% QOQ TO ₹42.67 CR, SUPPORTED BY NEW CUSTOMERS & HIGHER-VALUE ENGINEERING PRODUCTS • Q2 EBITDA INCREASED APPROXIMATELY 13% QOQ TO ₹11.96 CR, REFLECTING HIGHER SALES & OPERATING PERFORMANCE • Q2 PAT INCREASED APPROXIMATELY 14% QOQ TO ₹8.55 CR, SUPPORTED BY IMPROVING PROFITABILITY • H1 FY27 REVENUE INCREASED 11% YOY TO ₹76.79 CR, REFLECTING MODERATE TOP-LINE GROWTH • H1 FY27 EBITDA INCREASED 48% YOY TO ₹22.51 CR, SIGNIFICANTLY OUTPACING REVENUE GROWTH • H1 FY27 PAT INCREASED 51% YOY TO ₹16.04 CR, REFLECTING STRONG EARNINGS EXPANSION • H1 FY27 EBITDA MARGIN IMPROVED TO APPROXIMATELY 29.3% FROM AROUND 22% IN THE COMPARABLE EARLIER PERIOD • H1 FY27 EPS INCREASED TO APPROXIMATELY ₹3.58 FROM ₹2.37, SUPPORTED BY HIGHER PROFITABILITY • PITHAMPUR MACHINING CAPACITY UTILIZATION STOOD AT APPROXIMATELY 81%, INDICATING LIMITED HEADROOM BEFORE THE PLANNED EXPANSION • DEWAS FORGING CAPACITY UTILIZATION STOOD AT APPROXIMATELY 93–94%, HIGHLIGHTING THE IMPORTANCE OF TIMELY CAPACITY ADDITIONS • EXPORTS CONTRIBUTED APPROXIMATELY 82.36% OF H1 REVENUE, REFLECTING STRONG INTERNATIONAL EXPOSURE • THE UNITED STATES ACCOUNTED FOR APPROXIMATELY 59.56% OF EXPORT REVENUE, INDICATING SIGNIFICANT GEOGRAPHICAL CONCENTRATION • THE COMPANY EXPORTS TO MORE THAN 35 COUNTRIES & MAINTAINS SUBSIDIARIES IN THE UNITED STATES & CANADA • THE CURRENT ORDER BOOK STOOD AT APPROXIMATELY ₹68–70 CR, PROVIDING REVENUE VISIBILITY, ALTHOUGH THE EXECUTION PERIOD & CANCELLATION TERMS WERE NOT DISCLOSED • EXPORT ORDERS CONTRIBUTED APPROXIMATELY 78% OF THE ORDER BOOK, WHILE DOMESTIC ORDERS ACCOUNTED FOR AROUND 22% • THE COMPANY ADDED 13 NEW CUSTOMERS DURING Q2, SUPPORTING ITS INTERNATIONAL & DOMESTIC CUSTOMER EXPANSION STRATEGY • REPEAT CUSTOMERS CONTRIBUTED APPROXIMATELY 87.4% OF SALES, INDICATING A HIGH LEVEL OF EXISTING CUSTOMER BUSINESS • THE PRODUCT PORTFOLIO INCLUDES MORE THAN 5,250 PART NUMBERS, SUPPORTING A BROAD RANGE OF AUTOMOTIVE & INDUSTRIAL APPLICATIONS • TORQUE-TRANSMISSION COMPONENTS CONTRIBUTED APPROXIMATELY 64–65% OF REVENUE, WHILE COMPLETE PROPELLER SHAFT ASSEMBLIES ACCOUNTED FOR AROUND 35–36% • MANAGEMENT INDICATED COMPLETE SHAFT ASSEMBLIES GENERATE APPROXIMATELY 5–10% HIGHER MARGINS THAN COMPONENTS, REFLECTING ADDITIONAL MANUFACTURING & ASSEMBLY VALUE • THE COMPANY HAS MANUFACTURING CAPABILITY FOR INDUSTRIAL SHAFTS UP TO APPROXIMATELY 3 METRES IN LENGTH & 47,000 NM OF TORQUE • KEY RISKS INCLUDE A 248–249-DAY WORKING CAPITAL CYCLE, HIGH EXPORT & US MARKET CONCENTRATION, CAPACITY COMMISSIONING DELAYS, CUSTOMER QUALIFICATION TIMELINES & MARGIN SUSTAINABILITY • OVERALL OUTLOOK REMAINS POSITIVE, WITH KEY MONITORABLES INCLUDING FY27 REVENUE PROGRESS TOWARD ₹180 CR, FY28 ₹250 CR ASPIRATION, 28–32% EBITDA MARGIN SUSTAINABILITY, PITHAMPUR EXPANSION IN Q4 FY27, DEWAS EXPANSION IN Q1 FY28 & WORKING CAPITAL IMPROVEMENT TOWARD 200–230 DAYS

ADROIT INDUSTRIES (I) LTD

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