Annual Report for the financial year 2025-26

SMIL: LISTING: 2026-27/0109/01 September 01, 2026 BSE Limited (BSE) National Stock Exchange of India Limited (NSE) Department of Corporate Services Exchange Plaza, Pheroze Jeejeebhoy Towers 5th Floor Plot No. C/1, G Block Dalal Street, Mumbai - 400 001 Bandra - Kurla Complex, Mumbai - 400 051 (SCRIP CODE - 535602) (Symbol - SHARDAMOTR) (Series - EQ) Sub: Submission of Annual Report. Ref: Regulation 34 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 Dear Sir/ Madam, In pursuant to Regulation 34(1) and other applicable regulations of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015 (“Listing Regulation”), please find enclosed herewith Annual Report for Financial Year 2025-26 and the notice of 41st Annual General Meeting of the company scheduled to be held on Thursday, September 24, 2026 at 12:00 Noon (IST), through Video Conferencing (‘VC’)/Other Audio-Visual Means (‘OAVM’), to transact the business set as out in the Notice of the AGM. The Annual Report for the financial year 2025-26 and the Notice of AGM are also available at the website of the Company i.e www.shardamotor.com under “Investors Relations” Section. The Company has commenced and completed the dispatch (by electronic means only) of the Notice of AGM and the Annual Report for FY 2025-26 today i.e. September 01, 2026 to those Members of the Company whose e mail addresses are registered with the Company/Registrar & Transfer Agent/Depository Participants as on Tuesday, August 25, 2026. Further, in accordance with Regulations 36(1)(b) of SEBI (LODR) Regulations, 2015, a letter is simultaneously sent to those shareholders whose e-mail addresses are not registered with the Company/Registrar & Transfer Agent/Depository Participants as on Tuesday, August 25, 2026, providing the weblink of Company’s website where the Annual Report for FY 2025-26 and the Notice of AGM are available. This is for your information and record. Thanking you, Yours faithfully, For Sharda Motor Industries Limited Iti Goyal Asst. Company Secretary & Compliance Officer Encl. as above 41 Annual Report FY2025-26 CONTENTS CORPORATE OVERVIEW 2 BOARD OF DIRECTORS 13 LEADERSHIP TEAM 14 FROM THE MD’s DESK 16 CORPORATE INFORMATION 19 NOTICE 20 DIRECTOR’S REPORTS 39 REPORT ON CORPORATE GOVERNANCE 60 BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT 79 MANAGEMENT DISCUSSION AND ANALYSIS REPORT 119 STANDALONE FINANCIAL STATEMENTS 126 CONSOLIDATED FINANCIAL STATEMENTS 195 Corporate Overview Head office in Business Verticals New Delhi, India Emission Control Lightweighting Business 1000+ Global Business On-Roll Employees Supply Chain Management FY 26 Revenue: ₹ 33,968 million Manufacturing (~361 Mn$) Facilities FY 26 EBITDA: Chennai– 2, Pune– 3, ₹ 4,190 million Nashik – 2, Sanand - 1, (~45 Mn$ ) Uttarakhand - 1 ~30% Segments Served % Value market share for PV Passenger Vehicles & LCV Emission System Commercial Vehicles ~14% Tractor & CEV Value market Share for PV & Genset LCV Control Arms & Links 1 R&D Centre in Chennai, India Patents Granted: Filed 24 patents & 4 patents 1 Design & Development granted over last 4 years Centre Namyang, South Korea 125+ R&D Manpower Leading Industry Certifications IATF 16949:2016 ISO 14001:2015 ISO 45001 :2018 41ST ANNUAL REPORT 2025-26 Sharda Motor The journey so far 1986 1987 1994 1998 Inception of Sharda IPO & Listing at Delhi Launch of 1ˢᵗ large Foray into Exhaust Motor Industries Stock Exchange scale production unit Systems business with & entry into Trim the Chennai unit business 2010 2007 2002 Established R&D Investment in Ventured into for Emission Backward Integration Suspension assembly Control Systems (MWC Plant) business & established R&D unit for exhaust system 2013 2016 2019 1st In-house Entry into Tractor Joint Venture with development of Cold emission system Purem, Germany End & Hot End system 2023 2023 2020 2020 BS6 RDE SOP & Set up Plant - II Demerged- Seating BS 6 Products SOP TREM IV Products at Chakan Business 2024 2025 2026 Establishment of Global Establishment of Set up plant in Uttarakhand Business Vertical & Lightweighting Vertical & 3 Patents Granted Setting up Plant - III at Chakan 41ST ANNUAL REPORT 2025-26 Our Facilities State-of-the-art manufacturing facilities located at the heart of India’s automotive clusters Uttarakhand Emission Control Systems New Delhi Corporate Office Sanand Emission Control Systems Nashik 2 facilities Emission Control Systems Roof Systems Suspension Assembly Chakan 3 facilities (incl. new facility) Emission Control Systems Suspension Assembly Chennai 2 facilities Emission Control Systems Tube Mills R&D Facility Corporate Office Manufacturing facility R&D Facility 41ST ANNUAL REPORT 2025-26 Overview | Emission Control Vertical From an idea to its manufacturing, Sharda Motor leads the market in this category Comprehensive Customer ~30% Value Market Share in India Base: Catering to both for the passenger vehicle & Light domestic and international Commercial Vehicle segment. markets. Serving Multiple Segments & OEMs: Collaborating with multiple OEMs in In-house Stamping PV, CV and Off-road segments. Capabilities: Operating 3 stamping plants for critical components. Global Collaboration: Joint venture with Purem* (formerly Eberspächer). Advanced Tube Mills: 2 mills producing stainless steel and aluminized steel tubes for Strong R&D capabilities: In-house exhaust systems. design and testing capabilities for exhaust systems (ATS, Emission, NVH) Proximity to Customers : Patents Granted: Filed 24 patents, of Facilities spread across key which 4 have been granted over the automotive hubs in India, last 4 years. which also optimize logistics PV BS VI Diesel PV BS VI Petrol PV BSVI Cold End MHCV System Hot End System Hot End System System (DOC+DPF+SCR) Tractor Stage V CEV /IA System Generator (DOC + DPF + SCR) (DOC+DPF+SCR ) Muffler 41ST ANNUAL REPORT 2025-26 Overview | Lightweighting Vertical From an idea to its manufacturing, Sharda Motor is one of the fastest growing player in this product category ~14% value market Strategically Supplying Comprehensive End-to-End share for Passenger Located products for use Services from support including vehicle & Light Manufacturing in all powertrains design to development, Commercial Facilities to (including leading validation. project planning, Vehicle Control optimize logistics EV Launches). testing, and Arms in India and supply chain validation. efficiency. Upper Control Upper Control Rear Suspension Lower Control Arm LHS Arm RHS – EV Links Arm LHS Lower Control Rear Suspension – Axle Front Assembly Rear Links Arm RHS Enhancing Lightweighting Portfolio-TLA Signed With Donghee Industrial Co. Ltd., Republic of Korea Control Arm Links Subframe Torsion Beam • Strengthening existing control arms and links business • Global player specialising in chassis, Lightweighting, with cutting edge technology. body-in-white, fuel tank, and pedal module technologies • Adding new products- Subframes and Torsion Beam. • USD 2 billion Revenue (CY2024) • Increasing Content Per Vehicle of Lightweighting • 17 plants & 6 R&D centres across South Korea, Europe, portfolio to Rs.6K to Rs.18K from current level of China, USA, Mexico Rs.2K to Rs.8K • Strategic partner of 20+ Global OEMs including Hyundai, • Strategically positioning SMIL to gain market share Kia, VW, and Stellantis in existing business and develop new business opportunities 41ST ANNUAL REPORT 2025-26 Targeting the biggest markets with our core capabilities Key Marketscore Capabilities Key Segments Commercial Genset CEV Tractor USA Europe Vehicle (Under 100 Select Target Products Tractor Components Genset Hot End SCR Outlet Assembly Exhaust Pipe (DOC, DPF, SCR) Genset Muffler CEV Components Heat Shield Temperature (DOC, DPF,SCR) Controlled Tubes Capitalizing on emerging theme of ‘China+1’ to grow revenues from overseas customers Over the last few years, on the back of supply chain iss [Showing first 8,000 characters — download PDF for full document]