Deon Energy Limited

• Funding the capital expenditure requirements for setting up an independent power production plant at six identified sites in Junagadh, Surendranagar, and Kachchh in Gujarat (the "Proposed IPP Plant")₹95.8 Cr
• Funding working capital requirements of the Company₹75.0 Cr
• General Corporate Purposes

Except as disclosed in this section, as on the date of this Draft Red Herring Prospectus, there are no outstanding (i) all criminal proceedings (including first information reports irrespective of any cognizance taken by any court or not; (ii) all actions taken/penalties imposed by statutory and/or regulatory authorities; (iii) all claims related to direct and indirect taxes in a consolidated manner, giving the number of cases and total amount involved in such cases; or (iv) other pending litigations (including civil litigation or arbitration proceedings) as determined to be material by our Board pursuant to the Materiality Policy (as disclosed herein below) in accordance with the SEBI ICDR Regulations, in each case involving our Company, Subsidiaries, Promoters and Directors (collectively, the “Relevant Parties”) Key Managerial Personnel, Senior Management and Group Companies. Further, except as stated in this section, there are no disciplinary actions including penalties imposed by SEBI or any of the stock exchanges against our Promoters during the last five financial years preceding to the date of the Draft Red Herring Prospectus, including outstanding actions.

• A substantial portion of our revenues is dependent on our top 10 customers. In Fiscals 2026, 2025 and 2024, we derived 48.36%, 57.30% and 89.10%, respectively of our revenue from our top 10 customers. The composition of our top 10 customers tends to vary from year to year, depending on the timing, nature, and value of orders received. Consequently, a significant portion of our revenue remains concentrated among a relatively small group of customers, which exposes us to customer specific risks.(Customer Concentration)

• We derive a substantial portion of our revenue from our solar EPC business, particularly ground-mounted solar power projects, which accounted for 96.67%, 95.78% and 62.76% of our revenue from operations in Fiscals 2026, 2025 and 2024, respectively. Any decline in demand for such projects could materially and adversely affect our business, financial condition, results of operations and cash flows.(Business Concentration)

• Our business is significantly concentrated in state of Gujarat, and any adverse developments in this geography could materially and adversely affect our business, financial condition, results of operations and prospects. As of August 31, 2026, we have completed 126 solar projects in the state of Gujarat, with a strategic focus on regions characterised by favourable solar irradiation levels and robust grid connectivity. As of August 31, 2026, we have executed Completed Projects with an aggregate installed capacity of 321.53 MWDC of solar projects and have Ongoing Projects with an aggregate capacity of 198.97 MWDC of solar power projects under various stages of execution.(Geographic Concentration)

• Our revenue from operations is concentrated among our top customers. In Fiscal 2026, 2025 and 2024, our top five customers accounted for 30.71%, 35.24% and 60.19%, respectively and our top 10 customers accounted for 48.36%, 57.30% and 89.10%, respectively of our revenue from operations. Although the composition of our top customers may vary from year to year and we are not materially dependent on any single customer, the loss of one or more of our significant customers, a reduction in the business awarded by such customers, or any delay, modification, suspension or cancellation of projects awarded by them could materially and adversely affect our revenue from operations, financial condition, cash flows and profitability.(Customer Concentration)

• Our ability to maintain and grow our revenue from operations depends on our ability to continuously secure new orders and successfully execute our projects within the contractually stipulated timelines and at acceptable margins. There can be no assurance that we will be able to secure new orders of a comparable value or on commercially favourable terms. While no material delays in execution of projects have occurred in the last three Fiscals. Further, any delay, modification, suspension or cancellation of our projects, disputes with customers, cost overruns or failure to meet the prescribed quality and performance standards could result in delayed payments, invocation of performance guarantees, imposition of penalties or liquidated damages, reduction in our profitability and reputational harm, which could materially and adversely affect our business, financial condition, results of operations and prospects.(Operational Execution)

• Any decline in demand for ground-mounted solar power projects, delay in project awards or execution, or our inability to secure new orders for such projects on commercially favourable terms or at all, may materially and adversely affect our business, cash flows, financial condition and results of operations. Further, demand for ground-mounted solar power projects may be influenced by various factors, including customer capital expenditure cycles, availability and cost of financing, government policies and incentives, regulatory developments, technological advancements and broader market conditions. Any adverse changes in these factors may reduce demand for such projects and adversely affect our order book, revenue generation and profitability.(Market Demand)

• Our revenue from ground-mounted solar power projects amounted to ₹4,410.73 million, ₹2,859.36 million and ₹429.40 million, representing 96.67%, 95.78% and 62.76%, respectively, of our revenue from operations in Fiscals 2026, 2025 and 2024. Accordingly, our business is dependent on the continued and timely inflow of orders for such projects.(Business Concentration)

• The composition of our key customers varies from year to year, and we are not materially dependent on any single customer. However, our ability to maintain and grow our revenue from operations depends on our ability to continuously secure new orders and successfully execute our projects within the contractually stipulated timelines and at acceptable margins. There can be no assurance that we will be able to secure new orders of a comparable value or on commercially favourable terms.(Operational Execution)