Analysts/Institutional Investor Meet/Con. Call Updates

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Thankyionug, YouSrisn cerely, FoArD OWRE LDILNIGM ITED VINAYMA.BK H IDE COMPASNEYC RETARY EncAlsa: b ove ADOWRE LDILNIGM ITED RegCdo.r &p OoffriaActdeeoH: ro u6sK,eD. ,u bMaasrhFg o,rM tu,mi b4a-0000- 116M,a haraIsnhdtiraa., +9122 66I2 w3w w9.3a0d0o rweIlC dIiLN7n :0g 1.0c0oMmH 1951PLC008647 II.,1 8203013 0 7I1s c are@adorI�i + a9n21s40.0c7o0m6 000 “Ador Welding Limited Q2 FY27 Earnings Conference Call” October 23, 2026 MANAGEMENT: MR. ADITYA MALKANI – MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER – ADOR WELDING LIMITED MR. SURYANARAYAN – CHIEF FINANCIAL OFFICER AND HEAD OF STRATEGY – ADOR WELDING LIMITED MR. VINAYAK BHIDE – COMPANY SECRETARY AND CHIEF COMPLIANCE OFFICER – ADOR WELDING LIMITED SGA, INVESTOR RELATIONS ADVISORS – ADOR WELDING LIMITED Page 1 of 16 Ador Welding Limited October 23, 2026 Moderator: Ladies and gentlemen, good day, and welcome to Ador Welding Limited Q2 FY27 Earnings Conference Call. 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 this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference call over to Mr. Aditya Malkani, Managing Director and CEO of Ador Welding Limited. Thank you, and over to you, sir. Aditya Malkani: Thank you for attending the call. Good morning and a very warm welcome to everyone present. With me today are Mr. Suryanarayan, our CFO and Head of Strategy; and Mr. Bhide, our Company Secretary and Chief Compliance Officer; as well as SGA, our Investor Relations Advisors. I hope you have received our investor deck. This year has been special for Ador. In fact, yesterday, we completed 75 years. In 1951, we became the first -- India's first welding manufacturer, and today, we have 5 manufacturing units, more than 850 people, presence in over in 15 countries and the government-recognized R&D center. To reward our shareholders for their trust, the Board has declared an interim dividend of INR7.5 per equity share. Let me start with the headlines. Revenue for the quarter grew about 23% year-on-year to INR345 crores and H1 revenue was also up 23% at INR654 crores. Growth was supported by healthy demand across core end markets, including infrastructure, power, oil & gas, railways, shipbuilding, defense, and heavy fabrication. Strong capital goods activity in India provided a favorable operating environment during the quarter. We also want to address the margin issue directly. Gross margins for the quarter was 34.2%, with input cost inflation, particularly higher steel and other raw material prices, being one of the key pressures. We have taken calibrated price increases, and we'll continue to do so in a measured manner. Despite this pressure, EBITDA grew 9% in the quarter and H1 EBITDA margin was 11.2%, slightly higher than last year. Our objective of steadily improving EBITDA margins remains unchanged, although input cost cycles may affect pace of progress in individual quarters. Three drivers underpinned this growth, expanding our international reach, improving product mix and deepening customer engagement. The first part is exports. The Middle East remains our principal international market served through the Dubai hub. Building on that base, we are expanding our network and evaluating opportunities in Europe to create a broader and more diversified international presence. Product mix supported by collaborations. Our partnerships enable us to offer higher-end welding power solutions as well as MIG solutions. As Hypertherm's master distributer in India, we Page 2 of 16 Ador Welding Limited October 23, 2026 provide advanced plasma cutting systems. In consumables, we continue to introduce specialized high-performance products for demanding applications. Third is customer engagement. We are strengthening direct relations with key customers while continuing to support and expand our distribution network. Our technical support, training, and application teams connect these channels by helping customers select, deploy and optimize the right solutions. Automation remains a strategic priority, as rising labor costs and shortages of skilled welders drive customers, large, midsized and small, to invest in productivity. Our partnership with Liburdi Dimetrics brings orbital welding technology to the power, nuclear, oil & gas, shipbuilding sector, helping customers improve consistency, efficiency and weld quality. On operations, we are investing in new consumables line in line with the capex plan we had shared earlier. These investments will modernize our manufacturing base, support future demand and improve our ability to scale efficiently. With that, I'll now open the floor for questions-and-answers. Moderator: Thank you very much. We will now begin the question-and-answer session. First question is from the line of Rudraksh Raheja from ithought Financial Consulting. Rudraksh Raheja: Thank you for the opportunity sir. I hope I'm audible. Aditya Malkani: Yes, go ahead. Rudraksh Raheja: Yes. Sir, I wanted to get more clarity on the gross margin side. I think you've highlighted in your opening commentary as well that raw material pricing pressure was there, but -- and we have taken some price hikes. So how are we thinking on the gross margins line? Because they seem a bit on the lower side. So because of the price hike, should we expect more recovery in the second half? Aditya Malkani: Yes. So let's analyze for Q2 is. And if you ask me, approximately 80% of the reason that you're seeing a gross margin dip has to do with quite severe inflation in costs across the board, and I think which is -- a lot of people are feeling it across the board in many ways. I'd say 80% of it stems from there. About 15%-20% stems from an aggressive strategy in terms of the growth plan that we have, which is okay. It does not impact margins very, very heavily at all. I think -- going forward, you will definitely see the recovery. We are very confident. As far as our long-term goal goes for the next 3-4 years that we have laid out as far as our plan goes from this year that we have laid out, we don't see Q2 as hurting us too badly from that perspective. Page 3 of 16 Ador Welding Limited October 23, 2026 We would have liked it to have been a little bit better. But look, the supply chain/inflationary and cost input pressures are quite severe. And we've been able now to settle it down and we're quite confident we'll be able to recover that as we go forward. Rudraksh Raheja: Makes sense, sir. Sir, but what would be the sustainable number? I'm assuming there will be some quarterly dips here and there. And once we will bounce back and will be on the higher side as well, but on a sustainable level, what we could pencil in going forward. Aditya Malkani: It has to be between 12%-13% level. I keep saying that, I've no problem in saying that. It has to be between the 12%-13% level. Our job is to get it to between that 12% to 13% level and then push upwards from there. And th [Showing first 8,000 characters — download PDF for full document]