Annual Report for Financial Year 2025-2026.

FRONTIER SPRINGS LIMITED Coil Spring Air Spring Screw Coupling Annual Report 2025 -26 About Contents Strategic Review this Reporting basis Theme Introduction 04 Financial figures are presented in ₹ crore unless About Frontier Springs 06 stated otherwise. Growth rates are stated year on What We Make 08 Report year against FY25. The report states the basis of The Railway Modernisation a ratio where more than one basis is possible, for Opportunity 10 example whether a margin is measured on revenue from operations or on total income. Growth Engines 12 Five Years of Compounding 14 This is the annual report of Frontier The operational and financial Forward-looking statement Letter to Shareholders 16 information in this report is drawn This report contains statements about the Board of Directors and Corporate Springs Limited for the financial Company’s objectives, expectations, plans and Social Responsibility 18 from the Company’s audited results estimates that may be forward-looking within the year ended 31 March 2026, referred Management Discussion for the year and the accompanying meaning of applicable laws and regulations. These and Analysis 20 to throughout as FY26. It sets investor materials. Where the statements are subject to risks and uncertainties, including economic conditions that affect Statutory Report out the Company’s business, the report cites data on the economy demand and supply, prices of raw materials and energy, changes in government policy, regulation Notice 26 or the railway sector, that data is environment in which it operates, and taxation, and other factors. Actual results Directors’ Report 37 attributed to a named external may differ from those expressed or implied. The its performance for the year, and Corporate Governance Report 44 source. Company undertakes no obligation to publicly revise any forward-looking statement to reflect the management discussion and future events or circumstances. Financial Statements analysis. The prior year, ended 31 Independent Auditor’s Report 69 Balance Sheet 79 March 2025, is referred to as FY25 Profit and Loss Statement 80 and is used only as a comparator. Cash Flow Statement 81 Statement of Change in Equity 82 Notes to Financial Statement 87 for more information visit: www.frontiersprings.co.in Forward-looking statement This document contains statements about the expected future events, financial and operating results of Frontier Springs Limited, which are forward- looking. By their nature, forward-looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. There is a significant risk that the assumptions, predictions and other forward-looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors could cause assumptions, actual future results and events to differ materially from those expressed in the forward-looking statements. Accordingly, this document is subject to the disclaimer and qualified in its entirety by the assumptions, qualifications and risk factors referred to in the management’s discussion and analysis of the report. 4 Frontier Springs Limited | Annual Report 2025-26 Corporate Overview Statutory Report Financial Statements 5 Theme Introduction A Year of Broad- Based Growth FY26 in Numbers A summary of the year across growth, profitability, returns and the balance sheet. Figures are for the financial year ended 31 March 2026, with growth stated year on year against FY25. PROFITABILITY AND RETURNS PROFITABILITY AND RETURNS ₹322.06 26.80 cr % Revenue from operations, up 39.22% EBITDA margin, up 533 bps The Year in Brief REVENUE FY26 was a year in which Frontier Springs grew across all three of its divisions and improved 39.22 profitability as it did so. Revenue from operations ₹86.31 43.56 rose 39.22% to ₹322.06 crore, and the Company cr % surpassed the gross sales target of approximately ₹375 crore that it had set for the year. Profit after EBITDA, up 73.80% Return on capital employed, up 823 bps tax rose 76.88% to ₹61.31 crore, and the EBITDA margin, measured on revenue from operations, widened by 533 basis points to 26.80%. EBITDA MARGIN ₹61.31 ₹82.25 The year sits within a wider story. India remained 533 cr cr among the fastest-growing major economies, and basis points Indian Railways, the Company’s primary customer, Profit after tax, up 76.88% Profit before tax, up 77.24% is in the middle of a multi-year investment cycle. The Union Budget for 2026-27 set a record capital outlay for the Railways, of which rolling stock is the single largest head. Every new coach, wagon and ₹51.07 ₹31.41 locomotive built under this programme requires PPRROOFFIITT AAFFTTEERR TTAAXX cr springs, and increasingly air springs, of the kind the 76.88 Company makes. % Earnings per share, up 70.63% Cash generated from operations Within this setting, the Company advanced on three fronts. It scaled its air spring business for LHB coaches, commissioned a new 6-tonne hammer Increase to widen its forging range, and progressed the development of a new safety product, the Failure Indication and Brake Application system, on which it has received basic approval from the railway ORDER BOOK AND BALANCE SHEET standards body. It funded this growth from its own resources, without term loans, and entered FY27 ₹370 ~0.06:1 with an order book of over ₹370 crore. cr cr Order book entering FY27 Gross debt-to-equity ₹500 FY27 gross revenue target 6 Frontier Springs Limited | Annual Report 2025-26 Corporate Overview Statutory Report Financial Statements 7 About Frontier Springs About Frontier Frontier Springs Limited was incorporated in 1981 and manufactures hot coiled Four Decades in Motion Springs compression springs, air springs and forged The Company’s development can be read in four phases. It moved from a family spring business components for wagons, coaches and serving road transport, to a specialist supplier of hot coiled springs for Indian Railways, and then into forging and air springs. Each phase added a capability that the next one built upon. locomotives. The Company has supplied Indian Railways for more than four decades, and its springs are fitted on the PHASE 1 PHASE 3 Vande Bharat Express, the fastest train in service in India. Foundations, Diversification into forging, 1968 to 1990 2011 to 2021 The Company operates from Kanpur in Uttar Pradesh, across two manufacturing facilities and a The business began in 1968 making leaf springs In 2011 the Company entered forging, setting testing laboratory. Its products are approved by the for trucks, and built a distribution network across up a plant in Kanpur to make train components Research Designs and Standards Organisation, the Uttar Pradesh, Madhya Pradesh and Bihar. Frontier such as anti-roll bar assemblies, screw standards body of Indian Railways, and the Company Springs Limited was incorporated in 1981 and couplings, draft gear assemblies and hangers. is certified to the International Railway Industry supplied state transport undertakings such as Forging diversified the product range and Standard and to ISO 14001:2015. The International MSRTC and GSRTC. As competition increased, the added a capability that would later support Railway Industry Standard certification supports the Company diversified into laminated bearings for heavier components. direct export of its products. the railways, and as the railways evolved it began manufacturing coil springs for them. The business is organised into three divisions. Coil springs, the mainstay since the early 1990s, serve freight, coaching and locomotive applications. PHASE 2 PHASE 4 Forging, established in 2011, makes train components on hammers of one, three and six Air springs and new products, The railway spring business, tonnes. Air springs, established in 2022, supply the 2022 onwards secondary suspension of modern coaches. A new 1991 to 2010 safety product, the F [Showing first 8,000 characters — download PDF for full document]