Magna Electro Castings Limited has strengthened its renewable energy portfolio through a strategic investment in solar power infrastructure. The company executed a Captive Power Agreement and Share Subscription Agreement with First Energy TN 1 Private Limited (FETN1PL) on March 30, 2026, marking a significant step in its sustainable energy initiatives.

Investment Details and Strategic Rationale

The investment involves the acquisition of additional equity shares in FETN1PL to support the expansion of solar captive power capacity. The primary objective is to comply with regulatory requirements while securing additional renewable energy capacity for the company's operations.

Shareholding Structure and Compliance

The acquisition significantly enhances Magna Electro Castings' stake in the solar power venture. The company's shareholding pattern demonstrates its growing commitment to renewable energy infrastructure.

This investment ensures compliance with the minimum 26% shareholding requirement for captive users under the Electricity Act, 2003. The transaction does not fall under related party transactions, maintaining arm's length dealings.

Target Company Profile

First Energy TN 1 Private Limited operates as a specialized solar power developer with a focus on captive power solutions. The company has demonstrated consistent growth in its operational performance.

Financial Performance Track Record

FETN1PL has shown substantial revenue growth since its incorporation, reflecting the expanding demand for renewable energy solutions.

The company's business model focuses on developing captive power plants and solar power facilities on a build-own-operate basis to meet the captive consumption requirements of industrial users.

Project Expansion and Future Outlook

The Group Captive Solar Power Expansion Project represents FETN1PL's enhanced solar infrastructure in Tamil Nadu. The additional 1.1 MWp capacity will contribute to Magna Electro Castings' renewable energy requirements while supporting its sustainability objectives. The cash consideration structure ensures straightforward transaction execution without complex financial arrangements.

This strategic investment aligns with the growing trend of industrial companies securing dedicated renewable energy capacity to meet their operational requirements while complying with regulatory frameworks governing captive power consumption.

Magna Electro Castings Limited has announced the approval of its Annual Operating Budget and Capital Expenditure Budget for Financial Year 2026-27 following a board meeting held on Saturday, March 28, 2026.

Board Meeting Details

The Board of Directors meeting was conducted with specific timing and formal procedures in place. The meeting details are summarized below:

Budget Approvals

The board considered and approved two key financial planning documents for the upcoming financial year:

• Annual Operating Budget for FY 2026-27: This budget outlines the company's operational expenditure and revenue projections
• Capital Expenditure Budget for FY 2026-27: This covers planned investments in assets and infrastructure

These budget approvals represent the company's strategic financial planning for the next fiscal year, providing a framework for operational and capital allocation decisions.

Regulatory Compliance

The company has fulfilled its disclosure obligations under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The formal intimation was communicated to BSE Limited through official correspondence dated March 28, 2026, bearing reference number SEC/BSE/48/2025-26.

Company Secretary and Compliance Officer Divya Duraisamy signed the disclosure document digitally on March 28, 2026, at 17:49:15 +05'30', ensuring proper documentation and regulatory compliance for the budget approval announcements.