Annual Report for the Financial year 2025-26

STORAGE TECHNOLOGIES AND AUTOMATION LIMITED RACKING || SHELVING || AUTOMATION || STRUCTURAL || CONSULTING CIN: L74900KA2010PLC052918 Date: 1st September 2026 The BSE Limited Phiroze Jeejeebhoy Towers Dalal Street, Mumbai - 400001 BSE Script Code/Script ID: 544171/STAL ISIN: INE0RGM01016 Sub: Notice 16th AGM and Submission of Annual Report of the Company for the financial year 2025-26 Pursuant to Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we hereby submit Annual Report of the company for the Financial Year 2025- 2026 along with Notice for 16th Annual General Meeting of the Company for the Financial Year 2025-26. The 16th Annual General Meeting of the company is scheduled to be held on Saturday, 26th September, 2026 at 3:00 p.m. Please note that the electronic copy of the Annual Report 2025-2026 along with notice of 16th Annual General Meeting is being sent by email to those members whose email addresses are registered. Thanking you, For Storage Technologies and Automation Limited Mohammad Arif Abdul Gaffar Dor Managing Director DIN: 02943466 Encl: 16th AGM notice & Annual Report 2025-26 PAN: AAOCS1579F1ZU NO. 10, SURVEY NO 21/6A, 21/7A, 21/7B AND 21/8, info@racksandrollers.com :MAIL GSTIN: 29AAOCS1579F1ZU SINGANAYAKANAHALLI, YELHANKA POST, BANGALORE 560064, +91 9019 11 33 55 :CALL KARNATAKA, INDIA ANNUAL REPORT 2025-2026 S T O R A G E T E C H N O L O G I E S A N D A U T O M A T I O N L I M I T E D CIN: L74900KA2010PLC052918 No. 10, Survey no. 21/6A, 21/7A, 21/7B, 21/8, Sinanayakanahalli, Yelahanka, Bangalore, 560064 cs@racksandrollers.com +91 7353537825 16T H ANNUAL GENERAL MEETING 2025-2026 D A T E 26 SEPTEMBER 2026 T I M E 3:00 PM V E N U E SHAH SULTAN COMPLEX, FIFTH FLOOR, NO. 17/1-19 AND 17/1-20, ALI ASKER ROAD, BANGALORE 560052 Storage Technologies and Automation Limited 1. Message from the Chairman desk 2. Corporate Summary 3. Company’s Overview 4. Notice of 16th Annual General Meeting 5. Board’s report 6. Nomination and Remuneration Policy 7. Details of Remuneration 8. Form AOC-1 9. MR-3 10. Certificate of non-disqualification of Directors 11. Management Discussion and Analysis 12. Annual report on CSR activities 13. Standalone financial statements 14. Consolidated financial statements Annual Report 2025-26 Storage Technologies and Automation Limited Forward-looking Statements We have exercised utmost care in the preparation of this report. It might include forecasts and/ or information related to forecasts. Facts, expectations, and past data are typically the basis of forecasts. As with all forward-looking statements, the actual result may deviate from the forecast. As a result, we cannot assure the correctness, completeness, and up-to-datedness of the information for our forward-looking statements, as well as for those declared as taken from third parties. Reader discretion is advised. We undertake no obligation to publicly update any forward- looking statements, whether as a result of new information, future events, or otherwise. Message from the Chairman desk "True operational resilience is not measured when industry tailwinds carry you forward, but when capital discipline protects your balance sheet through unforeseen headwinds. We treated FY26 as a year of structural consolidation — protecting our engineering platform, defending gross margins, and laying the groundwork for a decisive operational turnaround." Dear Shareholders, It gives me great privilege to present to you the Annual Report of your Company, Storage Technologies and Automation Limited (Racks & Rollers), for the financial year ended March 31, 2026. FY26 was a testing and transitional period for our business. Consolidated revenue from operations for the full year stood at ₹84.97 Crore (₹8,496.97 Lakhs / ₹849.70 Million), down 15.35% compared to ₹100.38 Crore (₹10,037.99 Lakhs / ₹1,003.79 Million) in FY25. The revenue slowdown was heavily concentrated in the second half of the year (H2FY26 Consolidated Revenue: ₹377.56 Million vs. ₹509.55 Million in H2FY25), driven by a confluence of operational hurdles: • Client Order Reassessment: The unexpected order cancellation and project scrapping by a key corporate account, combined with project milestone deferrals and postponement across other enterprise clients. • Logistics Bottlenecks: Production dispatches and assembly logistics challenges during the fourth quarter, suppressing full-year billed volume. • Geopolitical Friction: War-related cross-border supply chain disruptions and regional logistics friction that temporarily impeded export shipments into key GCC and Middle East markets. Because our specialized site erection teams, contractual manpower, and leased heavy installation machinery (such as scissor lifts and heavy cranes) remained mobilized on deferred project locations in anticipation of site clearances, fixed operating overheads could not scale down with lower billings. Consequently, full-year consolidated EBITDA stood at ₹(63.24) Lakhs [₹(6.30) Million] (with H2FY26 Consolidated EBITDA at ₹(14.41) Million), resulting in a consolidated Adjusted Net Loss attributable to shareholders of ₹(323.84) Lakhs [₹(32.38) Million] for the financial year. Protecting the Balance Sheet & Capital Discipline Numbers of this nature demand candor and clarity. Scale by itself is not an achievement; what truly matters through a full-year down-cycle is whether capital discipline is maintained. On that test, as Chairman, I am deeply reassured by the underlying strength of our platform across FY26: • Gross Margin Durability: Our consolidated gross profit margin held remarkably firm at 36.51% for FY26 (FY25: 37.28%). This demonstrates that our core product unit economics, value-engineered racking Annual Report 2025-26 Storage Technologies and Automation Limited designs, and manufacturing cost controls remain intact. We refused to engage in margin-dilutive price wars or compromise bid quality. • Accelerated Cash Realization: We prioritized liquidity and working capital recovery across the fiscal year, accelerating cash realization across legacy accounts. Trade receivables decreased by ₹11.19 Crore to ₹32.09 Crore (₹3,208.65 Lakhs), compressing debtor cycles significantly. • Decisive Operating Cash Flow Turnaround: Net Cash Flow Generated from Operating Activities rebounded decisively to ₹8.46 Crore (₹845.90 Lakhs), compared to an operational cash outflow of ₹(20.41) Crore in FY25, fully covering our capital investments. • Active Balance Sheet Deleveraging: We utilized operational cash flows from receivables to reduce Total Debt by 19.38% from ₹17.74 Crore (₹1,773.56 Lakhs) in FY25 to ₹14.30 Crore (₹1,429.77 Lakhs) in FY26. Long-term borrowings were reduced by 73.09% to just ₹34.07 Lakhs. This brought our Debt-to-Equity ratio down to 0.36x on Net Worth (1.11x on share capital) alongside a healthy Current Ratio of 1.81x. Your Company did not take on leverage to bridge an execution valley; instead, we de-leveraged and preserved balance-sheet resilience across the entire fiscal year. The Operating Environment & Structural Tailwinds The macroeconomic shift in India's logistics landscape remains decisively in our favor: • Grade-A Warehousing Modernization: Driven by the National Logistics Policy (NLP) and PM Gati Shakti, the formalization of modern warehousing with 12–16 meter clear heights makes high-bay Selective Racking, Drive-In, and Radio Shuttle systems an absolute operational necessity. • Warehouse Automation Adoption: Rising industrial land costs and dense SKU profiles across e-commerce, retail, and cold chains are driving 3x–5x throughput requirements through Shuttle-based and Crane-based ASRS. Our FY26 performance was affected by customer-specific project timelines and temporary logistics friction, not a structural contraction in demand. Strategic Priorities & Cost Normalization for FY27 We enter FY27 with clear revenue visibility and an operational roadmap focused on cost normalization: [Showing first 8,000 characters — download PDF for full document]