Technocraft Industries (India) Ltd. — Call Transcript 2025

Nov 17, 2025

Regd. Office : Technocraft House, A-25, Road No. 03, MIDC Industrial Estate, Andheri (East), Mumbai - 400093, Maharashtra, India Tel: 022-4098 2222; Fax No. 4098 2200; CIN No . L28120MH1992PLC069252 E-mail: investor@technocraftgroup.com ; website: www.technocraftgroup.com

==> picture [73 x 68] intentionally omitted <==

Technocraft Industries (India) Limited

==> picture [596 x 10] intentionally omitted <==

November 17, 2025

To, National Stock Exchange of India Ltd. BSE Limited Exchange Plaza, Listing Department Bandra Kurla Complex, P.J. Towers, 1[st] Floor, Bandra (E), Dalal Street, Fort, Mumbai- 400051 Mumbai – 400 001 Ref: Script Name: TIIL Script Code: 532804

Dear Sir/ Madam,

Sub: Transcript of Conference Call held for discussion of financial performance of Second Quarter ended September 30, 2025

Pursuant to Regulation 30 and 46 read with clause 15 of Para A of Part A of Schedule III of the SEBI (Listing obligations and Disclosure Requirements) Regulations, 2015, please find enclosed the transcript of the Analyst / Investor Conference Call held on November 14, 2025 regarding the Unaudited Standalone and Consolidated financial results for the quarter ended 30 September 2025.

The said transcript has been uploaded on the Company’s website at the following link https://www.technocraftgroup.com/investor-meet-and-presentation/

Kindly take note of the same on your records.

Thanking you.

Yours sincerely,

For Technocraft Industries (India) Limited

NEERAJ Digitally signed by NEERAJ RAI RAI Date: 2025.11.17 16:51:48 +05'30' Neeraj Rai Company Secretary

Encl. as above

==> picture [202 x 67] intentionally omitted <==

“Technocraft Industries (India) Limited

Q2 FY '26 Post Results Earnings Conference Call” November 14, 2025

==> picture [130 x 44] intentionally omitted <==

==> picture [47 x 30] intentionally omitted <==

==> picture [106 x 53] intentionally omitted <==

– MANAGEMENT: MR. NAVNEET KUMAR SARAF DIRECTOR AND CHIEF – EXECUTIVE OFFICER TECHNOCRAFT INDUSTRIES (INDIA) LIMITED – MR. ASHISH KUMAR SARAF DIRECTOR AND CHIEF – FINANCIAL OFFICER TECHNOCRAFT INDUSTRIES (INDIA) LIMITED – MR. ANIL GADODIA GROUP CHIEF FINANCIAL – OFFICER TECHNOCRAFT INDUSTRIES (INDIA) LIMITED

– MODERATOR: MS. PURVA ZANWAR BATLIVALA & KARANI SECURITIES INDIA PRIVATE LIMITED

Page 1 of 11

Technocraft Industries (India) Limited November 14, 2025

==> picture [130 x 44] intentionally omitted <==

Moderator:

Ladies and gentlemen, good day, and welcome to the Technocraft Industries India Limited Q2 FY '26 Post Results Earnings Conference Call, hosted by B&K Securities India Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded.

I now hand the conference over to Ms. Purva Zanwar from B&K Securities. Thank you, and over to you, ma'am.

Purva Zanwar: Thank you. On behalf of B&K Securities, we welcome you all to the 2Q FY '26 Conference Call of Technocraft Industries (India) Limited. From the management side, we have Mr. Navneet Kumar Saraf, Director and CEO; Mr. Ashish Kumar Saraf, Director and CFO; and Mr. Anil Gadodia, Group CFO.

I'll now hand over the call to the management for their opening remarks, followed by the Q&A session. Over to you, sir.

Management: Thank you, Purva. Good afternoon to everybody, and welcome to the Q2 conference call for Technocraft Industries. Overall, it has been a reasonably good quarter on all fronts for all our four divisions, where we have seen a reasonably good performance in sales and profitability amidst fairly turbulent conditions all over the world.

I now look forward to the Q&A session and would like to hand over to B&K to get the call started. Thank you.

Moderator: Our first question comes from the line of Ruchit Agrawal from Unifi Mutual Fund. Ruchit Agrawal: Sir, a question on the formwork division. We've earlier guided about INR 900 crores of revenue for the year in formwork in particular. And if you could tell us what we've done in H1? And are we on track to achieve that number?

Also, how are our efforts going towards expansion in the Saudi and South American markets? And what would be their contribution at the moment for formwork? And also, does the domestic demand environment remain robust in formwork? And can we still say that we are supply constrained? And if you can just reiterate guidance for formwork, both in terms of growth and margins?

Management: Yes. Thank you for your question. So as far as formwork is concerned, yes, we have seen an increase, and we are actually on track with our target for about INR900 crores this year. This particular quarter, the total segment revenue was about INR402 crores, and it was significantly higher from the last quarter, which is mainly on account of increase in our Mach One sales. So that has been the main reason for the increase. And -- so yes, so we are well on track for that particular target.

Page 2 of 11

Technocraft Industries (India) Limited November 14, 2025

==> picture [130 x 44] intentionally omitted <==

As far as your question pertaining to the two geographies, Saudi Arabia and South America, Saudi Arabia has not yet picked up the way we would have liked it to pick up. It's taking more time mainly because of statutory approvals.

But South America has been doing well and doing more better than what we had expected in terms of performance. We have received orders from Brazil, from Mexico as well as from Colombia, and our order pipeline is also good. So we are quite positive on that front.

Domestic demand continues to be robust and buoyant, and we still are in a capacity constrained mode wherein the demand is far greater than our capacity. Our Aurangabad plant is now fully ramped up. And this quarter, the Aurangabad plant was positive after interest and depreciation. So that's been quite well before our target for the plant. So that's been doing well and adding to our top line, bottom line.

Ruchit Agrawal:

That's great to hear, sir. Sir, also in the formwork in particular, do we have enough manpower on the designing front as well? Or are we constrained on that part?

Management:

No, we do have enough manpower on the designing front. We are not constrained right now.

Ruchit Agrawal:

Okay. And sir, on scaffolding, how do you see the current environment shape up, especially in the U.S. and also our efforts in terms of developing the European markets for scaffolding, how has that played out? And any guidance for the scaffolding segment?

Management:

While this quarter was reasonably good in the scaffolding segment, but there has been a reduction in demand in the U.S., which is our biggest market for scaffolding. The reduction in demand is mainly on account of the uncertainty around the tariff environment and the constant changes that's been happening.

We have seen this happening from the August onwards in the U.S. And in fact, the last 3 months, August, September and October, is when we have seen maximum slowdown in demand and sales in the U.S. In our quarter-on-quarter results, the U.S. subsidiary gets consolidated a quarter prior.

So what you see in the September quarter is actually the April to June calendar year results of the U.S. subsidiary, whereas we've started to see a slowdown in sales from August onwards. So to that extent, I do anticipate effect on our third quarter results for the scaffolding segment, which will see bulk of the impact due to the tariffs.

Having said that, on the positive front, we are hoping that a trade deal is imminent and a reduction in tariff is shortly on the cards. We have also started to see some pickup in demand in the U.S. this month. And this is due to greenlighting of certain capital projects that were taking longer to start.

So some of them have actually started this month, which is again a positive sign. And hopefully, that's also going to be sustainable. So while we cannot say for sure, but we are hoping that we are past the worst of the sales drop in the U.S.

Page 3 of 11

Technocraft Industries (India) Limited November 14, 2025

==> picture [130 x 44] intentionally omitted <==

As far as Europe is concerned, slow pickup. It's not picked up the way we had anticipated it to be. The economy there is still very, very soft and the demand has not picked up yet, but we are making progress in small steps.

Ruchit Agrawal: Okay, sir. Anything on the guidance front for scaffolding? Management: I'm sorry? Ruchit Agrawal: If you could quantify some guidance for us on scaffolding? Management: Very hard to give you a guidance because things are currently very volatile and things are changing on a monthly basis. If Trump reduces the tariff tomorrow, the guidance will change. If it doesn't reduce by 3 months, the guidance will change. So it's very, very difficult to give a guidance on scaffolding. We are more comfortable giving guidance in Mach One because at least there, we are sure on the domestic demand environment. Ruchit Agrawal: Sure, sir. Sir, on the ER&D, we had earlier alluded to the bigger contracts ramping up in the year. How are they shaping up? And what kind of run rate should we expect going forward in the ER&D division? Management: Yes, that's doing quite well. We are seeing good progress with the ramp-up of larger accounts. We've had several new customers added in this quarter, and that's visible in our quarterly results as well. Our run rate is also higher right now as compared to what it was. So in services like manufacturing automation, plant engineering, digital transformation, we are seeing good traction in both new accounts as well as existing accounts. Ruchit Agrawal: Okay, sir. And sir, last on the textile division, this quarter, we've seen a surprisingly good number. Do we expect this to continue? And if you could touch upon where we are in terms of the demerger of the division? Management: In the yarn, we expect that the result to continue. Actually, there could be a slight drop in this Q3 because of the environmental is subdued. In the other divisions, apparel and fabric, we hope to see better results in Q3, Q4. Yarn will remain pretty much the same, we don't anticipate much drastic change in the yarn side. Ruchit Agrawal: Okay. So we should... Management: And demerger, we are not -- I mean, not given any serious thought to it at the moment. Ruchit Agrawal: Okay. So broadly, we should remain at this breakeven to slightly positive EBIT levels from the segment. Is that...

Management: Correct, correct. Yes, this is what we are expecting this year to end. Moderator: Our next question comes from the line of Chetan Vora from Abakkus Asset Manager.

Page 4 of 11

Technocraft Industries (India) Limited November 14, 2025

==> picture [130 x 44] intentionally omitted <==

Chetan Vora:

Sir, I just would like to understand the scaffolding as a whole. This quarter had been quite good. Should we expect this momentum to continue with respect to both the growth trajectory as well as the margin profile, sir?

Management: So we should not expect it for the next quarter because like I was saying, yes, this quarter has been good because we have seen both increase in demand on the domestic front as well as we have seen effect of a good second quarter in the U.S.

This quarter basically illustrates our U.S. quarter 2 calendar year, April to June, which was actually quite strong. We have started to see a drop in sales July, August onwards in the U.S., and that's lasted till October. So that is going to affect our next quarter, Q3. We have again started to see pickup in the U.S. this month. So hopefully, Q4 should be back on track along the lines of Q2.

Chetan Vora: Okay. So the second half could be mirroring the first half overall on an average basis, right? Management: Yes. Chetan Vora: And in terms of profitability, the profitability has also improved in the scaffolding. The margins, which had gone down to close to 11%, 12%, now it has gone to 14%. What's your view on that, sir?

Management: So it's a result of volume because we've had increase in sales. So we've been able to absorb our overhead costs and hence, we have got the profitability of 14%. And this will as long as we are able to have this kind of volume, we'll have this kind of profitability as well. Chetan Vora: Right. And coming to the ER&D, the expenses what we had done to increase our bench strength, whether should we start seeing the operating leverage benefit on account of that because the revenue has also started improving? We are, I think, able to utilize our platform quite very well. So what's your view on that, sir? Management: Yes, absolutely. That's the reason why the revenue has started increasing. I mean we expected this. And so we are on track, and we are expecting to be at a quarterly revenue run rate of INR75 crores to INR80 crores per quarter by the end of Q4. Chetan Vora: So exit quarter should be INR75 crores to INR80 crores.

Management: Yes. Moderator: Our next question comes from the line of Vikas Gupta, who is an investor. Vikas Gupta: Really commendable job for a difficult period. Sir, just wanted to ask a few questions related to formwork. So I just want to understand the landscape -- competitive landscape. So how much is our total capacity within our country? And who is the largest player as per your understanding?

Management: Difficult to give you an exact number. We don't have a sense of the total capacity because most of the players are unlisted private players. Our capacity is for the aluminum formwork, which is the big part of the formwork that we sell currently in India, is about 70,000 to 75,000 square

Page 5 of 11

Technocraft Industries (India) Limited November 14, 2025

==> picture [130 x 44] intentionally omitted <==

meters a month. And that we are going to increase to about 1 lakh square meter by Q4 of this year. So that's currently on track.

There are probably another 25 to 30 local manufacturers with capacities ranging from 5,000 to 50,000 square meters a month. Technocraft is definitely amongst the biggest, if not the biggest in India. So yes, so that's a sense of what we know.

Vikas Gupta: So how much capex are we planning for next quarter or maybe the next half as well as for next 2 years?

Management: So nothing in this year because this is all capex that's already been done in Aurangabad and it's now under commissioning. So the figures that I told you, the capex for that has already been completed. In the next 2 years, we may be looking at doubling the capacity of our extrusion plant. So that will entail a capex of about INR150 crores or so, but that is something which is 2027, not 2026.

Vikas Gupta: Okay. Sir, one thing, are we selling perimeter safety screens by any chance as a product basket?

Management: Yes, we are.

Vikas Gupta: Okay. Because one of our competitors has recently launched it, and he is expecting INR100 crores to INR150 crores sales by next year. So how much will be the quantum for us?

Management: I cannot give you a guidance, but yes, that's an important product. It goes along with aluminum formwork, and we are selling it, and we are seeing good increase in sales. The regulation in India is such that worldwide, it is compulsory to cover buildings while constructing to prevent debris from falling down.

This regulation was not there in India. It's still not there. But as buildings are getting taller, developers are getting more sensitized to this, and that's driving the demand. So it's natural that the demand for perimeter safety screens is going to increase. We have a good product, and we are selling that.

Vikas Gupta: So as just a suggestion, sir. So we have a good collaboration and partnership with various education institutions, I think so even with IIT Bombay, we can, I think, collaborate with them, have a study and -- about giving the benefit of this safety equipment.

Management: Sure. Yes, well noted.

Vikas Gupta: Yes. So one last thing. Can you just help us understand what's the working capital difference in the business for exports and with the domestic market in formwork ?

Management: Yes. I can't give you any number per se, but the main difference is that firstly, in India, it's all on advanced payments. So there is no credit unlike export where we sell on 30 to 60 days credit. And the inventory is lesser because we really don't carry much inventory.

Vikas Gupta: So roughly how much it might be, sir? I mean, in case if you see the whole cycle?

Page 6 of 11

Technocraft Industries (India) Limited November 14, 2025

==> picture [130 x 44] intentionally omitted <==

Management:

Out of our total capital employed in the scaffolding segment, which is about INR1,400 crores, about INR500 crores will be in the formwork segment and the balance will be in the scaffolding segment.

Vikas Gupta: So the whole dynamics of the balance sheet and cash flow will change as the formwork ramps up. Is it right?

Management: Yes, certainly. I mean it's obviously, the total number of days will reduce, will come down. Vikas Gupta: Okay, okay. And sir, one last thing on the textile part. Have we restated our previous quarter's numbers, volume numbers by any chance last year?

Management: No, no, we haven't -- there is no recalculation or... Vikas Gupta: Volume, volume, volume, last year.

Management: Yes, could be there is some interunit differences, which one unit selling to within the group, which has been consolidated, probably small changes must have happened over there, just to make the figure correct.

Vikas Gupta: So I think I'll just give you an example, if the yarn volume was 3,356 metric ton last year, and now it has been shown as 1,942 metric ton.

Management: So the inter-unit must have been deleted out of -- if it was not taken earlier, so we have deleted -- we have reduced the interunit sales to give the correct picture.

Moderator: Our next question comes from the line of Purva Zanwar from B&K Securities. Purva Zanwar: Congratulations on good set of numbers. So my question was on the drum closure business. So overall, what is your outlook on the business for full year? Earlier, you had guided that you will be able to maintain growth, but margins may get impacted because of tariff-led uncertainty but if you see 1H FY '26 growth, the business has de-grown on a Y-o-Y basis. So any outlook for the full year on this business?

Management: So there has been a marginal degrowth in revenue. But as far as the volume is concerned, compared to our last quarter of '24, there's been a very small drop in the number of sets of drum closures. And so overall, I would say the volumes have been flat.

Profitability has definitely taken a little bit of a hit because of the tariff in the U.S. of 50%. And actually, that we will see a further impact in Q3 because we have not been able to pass on the full 50% tariff. We have passed on only half of that, half we have absorbed. So that is directly going to impact the bottom line.

But overall, we've been able to maintain our volumes. In China, we have seen some growth in volumes. Our clamp products have seen some growth in volumes. So I think the outlook is fairly stable for the drum closure business.

Page 7 of 11

Technocraft Industries (India) Limited November 14, 2025

==> picture [130 x 44] intentionally omitted <==

Purva Zanwar: Any quantification you can give on the margin front? So this quarter, we had margins of around, I think, 33-odd percent in this segment. So any figure which you would like to guide on this?

Management: See, the U.S. business is roughly about 25% to 30% of the total business. And if the U.S. business, we are having a sales realization drop by absorbing that 25%, that will impact that portion of the business. So overall, I think it could impact the margin by as much as 10% for the next quarter till the time this tariff comes down.

Purva Zanwar: Okay. Got it. And second one was on the aluminum formwork side. You had mentioned earlier that by FY '26 end, we'll fully ramp up the new Aurangabad facility. So are we also looking at expanding on the aluminum formwork side in FY '27 apart from extrusion?

Management: So we are going to eventually double our extrusion capacity. We are currently almost 100% utilized on the extrusion capacity and consuming everything captively. Whether we do it in the second half of FY '27 or first quarter of FY '28 remains to be seen.

But at some point in time, we are going to double that. Once we double that, we will correspondingly also increase the formwork production capacity. So that will happen in either the latter half of FY '27 or first half of FY '28.

Moderator: Our next question comes from the line of Ruchit Agrawal from Unifi Mutual Fund. Ruchit Agrawal: Sir, just one question on the defence segment. How are we seeing the product that we had launched, JT Cooler? We believe that it was under trial production some time back. Is the product now being launched? And how big of an opportunity do we see in the defence? And also if there are any new products that we are planning to launch in the segment?

Management: Yes, Ruchit, as informed earlier from time to time, defence products takes time. What has happened is our JT Cooler samples has already been supplied to Israel and France company and discussion with the Israel company are at advanced stage.

We don't have a written purchase order in hand, but we are hopeful that in days to come, we will get good commercial orders. And other small orders, let's say, to the extent of less than INR10 crores are also received in defence, but it always takes some time.

Ruchit Agrawal: Okay, sir. Any color on the size of opportunity that we see in the segment? Management: So it's very difficult to quantify the numbers. Management: The opportunity is very large, like we all read in the papers, but working with the government departments takes a little time. So very difficult to put any number like this. Moderator: Our next question comes from the line of Prateek Bhandari from Aart Ventures.

Prateek Bhandari: Just a couple of questions. First, what has been the capacity utilization for Mach One? And the second, what has been the revenue run rate of Mach One in the Indian domestic business? What have we done till H1 of this year and specifically for the quarter 2 as well?

Page 8 of 11

Technocraft Industries (India) Limited November 14, 2025

==> picture [130 x 44] intentionally omitted <==

Management:

The total quantity that we have sold in H1, I mean, the total sales value in H1 of Mach One has been roughly about INR410 crores, INR415-odd crores. And we are currently operating at a monthly revenue run rate of about INR70 crores a month.

Prateek Bhandari: How much? Management: INR70 crores. 7-0. Prateek Bhandari: INR70 crores. So this is in totality in the domestic market, I mean, the Indian business, right? Management: This is entirely the Indian business, yes. Prateek Bhandari: Right. And what was the quantum that we did in quarter 2 specifically? Management: Specifically in quarter 2, we would have done about INR225 crores, INR230 crores. Prateek Bhandari: Okay. So INR410 crores in the first half, out of which INR220 crores, INR230 crores in the second quarter? Management: That's right. Moderator: Our next question comes from the line of Riya Mehta from Aequitas Investment. Riya Mehta: I think the results were very good compared to the current scenario, which is there. I just wanted to have a conversation on what was the kind of volume degrowth can we see for U.S. business in basically for August, September, October directionally? Management: We have seen a reduction of about 45% to 50% in the U.S. business from July onwards. So July, August, September and October was about 50% lower in those months compared to what it was last year in the same months. So that's what we've seen. But this month, November, we have seen an increase. So yes. So hopefully, it's only for that 4-month period. Riya Mehta: Okay. Since there is a reduction in the freight rates currently, are we anticipating any benefit out of it and margin improvement? Management: Freight is not a very large part of our -- I mean, there will be some margin improvement as a result of that, but not significant. I mean freight is ultimately only 8% of our total product cost. So not a very large difference. And the reduction in freight has been about -- it's not significant. It's been about $400 to $500 a container. So it's been about 10% reduction at best. So I don't see more than 1% improvement in margin because of that. Riya Mehta: Okay. And in terms of scaffolding, I think what we had mentioned was that our largest competition is China for us. So since their rate of tariff has reduced, do we anticipate further issues going forward?

Page 9 of 11

Technocraft Industries (India) Limited November 14, 2025

==> picture [130 x 44] intentionally omitted <==

Management: The fentanyl tariff has reduced by 10%. But overall, their tariff is still higher than India because they have the 2018 tariff of 25% on Section 301 that is still applicable. So while our tariff is 50%, their tariff is on an average about 70%. So we still have an advantage. Riya Mehta: Okay. And in terms of Mach One, what is the kind of order book we have? For how many months are we expecting? Management: Yes. So we have a comfortable order book of about 350,000 square meters, which is about 4 months of orders basis current capacity. So yes, so we are quite okay on that front. Riya Mehta: And just to recheck myself, for the Aurangabad facility, you just mentioned that we would be doing exit quarter revenue run rate of around INR75 crores to INR80 crores, right? Management: Yes. Riya Mehta: And that would lead to incremental profit of how much? I think profit INR500 crores. Management: Yes. So currently, our profit in Aurangabad again, there is a heavy depreciation impact. So if I mean, this for example, this quarter, quarter 2, we had a profit of almost 10% after depreciation, but depreciation is quite high. At EBITDA level, we are at about 15% to 16%, 17%. But at PBT level, we are at about 10% because we have the depreciation of the extrusion plant, which is quite high. Moderator: The next question comes from the line of Rahul Kumar from Vaikarya Fund. Rahul Kumar: I'm just a little bit confused on the formwork capacity, which you mentioned. What is exactly the capacity right now? And what's the capacity utilization? Management: The capacity right now is about 75,000 square meters a month, and the capacity utilization is almost 95%. Rahul Kumar: Okay, okay. Because the volumes which you have disclosed in the quarter would be roughly 75% of what the capacity is. Management: No, I'm saying right now, the capacity has been continuously increasing. Rahul Kumar: Okay, okay. And this 100,000, which you mentioned by the year-end, so that's also sort of already been done, right? -- completed -- the capacity has been completed, expand? Management: Yes. Rahul Kumar: Okay, okay. So for, let's say, next FY '27, do you think we will be again capacity constrained in the formwork segment because we already are running at 100% utilization? Management: Yes. But the capacity will increase to 100,000 a month from Q4 onwards. So that's a further jump from where the current capacity is. So we should be okay.

Page 10 of 11

Technocraft Industries (India) Limited November 14, 2025

==> picture [130 x 44] intentionally omitted <==

Moderator: As there are no further questions, I would now like to hand the conference over to the management for closing comments.

Management: Yes. Thank you very much. Thank you for all the participants for the engaging questions. And if anybody has any follow-up questions, please feel free to send it to our CFO, and we'll address them. Thank you again. Bye.

Moderator: On behalf of B&K Securities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.

Page 11 of 11