Bansal Wire Industries Ltd Management Discussions

MACROECONOMIC ENVIRONMENT

Global Economy

The global economy remained resilient through FY 2025-26. According to the IMF, global GDP growth remained stable at ~3.4% across calendar years 2024 and 2025, supported by resilient consumer spending, steady global trade activity and improving industrial momentum across emerging economies.

However, the operating environment turned more volatile towards the close of the financial year. Geopolitical tensions in the Middle East during the final weeks March 2026, alongside tariff-related uncertainties and shifting trade dynamics, contributed to fluctuations in energy prices, freight costs and commodity markets. Reflecting these developments, the IMF revised global growth expectations for calendar year 2026 to ~3.1%, from an earlier estimate of 3.3%, while global headline inflation is projected to increase modestly from 4.1% in

2025 to 4.4% in 2026 and is expected to moderate to 3.7% in 2027.

Commodity and energy markets also witnessed renewed volatility, with average crude oil prices estimated at ~ USD 82 per barrel for 2026 and global energy prices expected to increase by nearly 19% amid supply-side concerns.

Despite near-term uncertainties, emerging economies, particularly across Asia, continued to outperform several advanced markets. Supply chain diversification and China strategies also continued to strengthen the long-term outlook for manufacturing-led economies such as India.

(Source: IMF World Economic Outlook, April 2026; WEF Global Economy Update, April 2026)

h t t p s : / / w w w . i m f . o r g / e n / p u b l i c a t i o n s / w e o / issues/2026/04/14/world-economic-outlook-april-2026

https://www.imf.org/-/media/files/publications/ weo/2026/april/english/text.pdf

Indian Economy

India firmly solidified its position as the worlds fastest-growing major economy for the fourth consecutive year during FY 2025–26, cementing its leadership in global economic growth. Real GDP grew by 7.7%, accelerating from 7.1% in FY 2024–25. This robust expansion was supported by resilient domestic consumption, sustained government infrastructure spending, improving manufacturing activity and a strong services sector.

Indias economic momentum during the year was highlighted by a resilient "Goldilocks" macroeconomic environment characterized by robust structural economic expansion balanced alongside well-contained domestic inflation. This stability enabled the nation to withstand intensifying global trade headwinds, shifting international tariff regimes and heightened geopolitical frictions.

Indias economic momentum was supported by a combination of favourable macroeconomic and policy factors, including an above-normal southwest monsoon, the September 2025 GST 2.0 reforms and successive RBI policies. In parallel, infrastructure capital expenditure remained elevated at Rs 12.22 lakh crore, creating a strong and durable demand pipeline for industrial and infrastructure-linked materials.

Indias long-term growth outlook also remains compelling.

The country continued to strengthen its position as one of the worlds largest economies, ranking as the fourth largest by nominal GDP and the third-largest on a purchasing power parity (PPP) basis. With continued emphasis on infrastructure creation, manufacturing expansion, digitalisation and formalisation of the economy, India remains on a strong trajectory towards its long-term aspiration of becoming a USD 5 trillion economy. Policy initiatives such as Make in India 2.0, the Production-Linked Incentive (PLI) scheme and the

National Manufacturing Mission are expected to further strengthen domestic capabilities and enhance Indias role within global supply chains.

https://www.moneycontrol.com/news/business/india-s-gdp-grew-at-7-7-in-fy26-and-7-8-in-q4-mospi-13941892. html

https://bombaychamber.com/industry-news/budget-

2026-27-record-%E2%82%B912-2-lakh-crore-infra-push-and-major-boost-for-msmes-manufacturing/

Outlook

Looking ahead, the IMF projects India to grow at ~ 6.5% in calendar year 2026. India enters the coming years with strong conviction in its growth trajectory. Having delivered one of the most resilient performances among major economies in FY 2025-26, the country is well-positioned to sustain its position as the worlds fastest-growing major economy. Multilateral agencies project

GDP growth at 6.5–6.6% for FY 2026-27, even as global uncertainties linger.

India is firmly on course to become the worlds third-largest economy by 2028–2030, a milestone underpinned by powerful structural advantages. These include a favourable demographic dividend with a young workforce, world-class digital public infrastructure that is driving rapid formalisation and financialinclusion and its strategic emergence as a preferred global manufacturing and supply-chain hub under the "China plus one" framework.

The Union Budget 2025-26 further strengthened this foundation by maintaining a strong growth orientation. With capital expenditure sustained at Rs 12.22 lakh crore, marking a 9% increase over the previous year, the government reinforced its commitment to infrastructure modernisation, multimodal connectivity and manufacturing self-reliance. Key measures including tax rationalisation to boost middle-class consumption, continued expansion of the Production-Linked Incentive

(PLI) scheme and advancement of the National Manufacturing Mission are designed to catalyse private investment, enhance competitiveness in strategic sectors and deepen Indias integration into global value chains.

Supported by controlled inflation,a constructive monetary policy environment and ongoing reforms focused on ease of doing business, Indias economic journey reflects increasing resilience and self-confidence. These enduring strengths demographic, digital, infrastructural and policy-driven provide a high-conviction backdrop for sustained industrial expansion and long-term economic transformation.

(Source: RBI Monetary Policy Reports, October 2025 and February 2026; IMF WEO April 2026; MoSPI GDP Estimates; ADB South Asia Development Update, October 2025; World Bank India Growth Forecast, October 2025; Crisil Economic Update, December 2025)

INDUSTRY OVERVIEW

Global Steel Wire Industry

The global steel wire market demonstrated healthy structural expansion through FY 2025-26. The market, estimated at ~ USD 116.75 billion in 2025, is projected to scale to USD 121.77 billion in 2026 and reach USD 175.69 billion by 2035, representing a compound annual growth rate of 4.2%. Asia-Pacific continues to command the dominant share of global steel wire consumption, accounting for over 45% of global revenues in 2025. The regions advantage stems from concentrated infrastructure activity, a vast and growing automotive manufacturing base and the strategic imperative of supply-chain diversification away from single-country dependence. China remains the largest individual market, but its steel output has been moderating since 2021, a dynamic that has created meaningful white space for Indian and other Asian producers to compete for both domestic and export share.

North America is anticipated to register the fastest regional growth in the near-to-medium term, driven by the US infrastructure push and reshoring of industrial manufacturing. Europes steel wire demand, while more constrained, is being shaped by stringent environmental regulations that are accelerating the transition toward greener and more energy-efficient wire manufacturing, a trend that rewards producers with established sustainability credentials and compliance frameworks.

Industry leaders are also directing capital toward this transition, raising the bar for product and process standards globally. The stainless-steel wire segment is emerging as the fastest-growing category, with a projected CAGR of around 6.7% through 2034.

While the long-term outlook for the global steel wire industry remains constructive, the operating environment continues to be influencedby certain macroeconomic and structural challenges. Raw material prices, particularly steel and energy inputs, continued to witness periodic volatility during FY 2025–26, driven by geopolitical developments, evolving trade policies and supply chain disruptions. Towards the close of the financial year, geopolitical tensions in the Middle East also highlighted the sensitivity of global freight routes and energy markets to external disruptions.

In parallel, increasing sustainability requirements and evolving trade regulations across developed markets are reshaping industry dynamics. Measures such as carbon reporting requirements and border adjustment mechanisms are raising compliance expectations across the value chain. Additionally, periodic supply-demand imbalances and pricing pressures in global steel markets continue to influence industry profitability and competitive intensity. Despite these near-term considerations, continued diversification of supply chains and increasing focus on value-added and specialised products are expected to support long-term industry resilience.

(Source: Persistence Market Research Steel Wire Market Report, March 2026; Precedence Research Steel Wire Market, 2025; Allied Market Research Steel Wire Market Report, December 2025; Fortune Business Insights Steel Wire Market Report, 2025)

https://www.precedenceresearch.com/steel-wire-market

Indian Steel Wire Industry

The Indian steel wire industry continued to demonstrate healthy growth during FY 2025–26, supported by sustained demand across infrastructure, automotive, agriculture, power and industrial sectors. The domestic market is estimated to grow at a CAGR of ~ 7.4% during

2026–2032. India continues to strengthen its position as one of the key growth markets globally, supported by increasing industrial activity, infrastructure investments and manufacturing expansion.

Government initiatives continue to provide a favourable ecosystem for industry growth. Programmes such as PM

Gati Shakti, Bharatmala Pariyojana, Smart Cities Mission, Make in India 2.0 and the Production-Linked Incentive (PLI) scheme continue to strengthen infrastructure creation, improve domestic manufacturing competitiveness and accelerate localisation across sectors. Simultaneously, continued investments across transportation networks, power transmission, renewable energy infrastructure, industrial corridors and urban development projects are expanding the application base for steel wire products and creating long-term demand visibility.

The industry is also witnessing gradual evolution in product and manufacturing dynamics. Demand is increasingly shifting towards higher-performance and specialised products, supported by increasing applications across automotive, engineering, infrastructure and energy sectors. At the same time, investments in automation, process technologies and smart manufacturing capabilities are strengthening operational efficienciesand improving product quality standards across the industry.

Despite periodic volatility in raw material and energy costs, the long-term outlook for the industry remains constructive, supported by rising formalisation, increasing localisation efforts, expanding renewable energy investments and Indias continued emergence as an important manufacturing and supply-chain destination.

(Source: 6W Research India Steel Wire Market Outlook 2026; Bonafide Research India Steel Wire Market; NHAI FY 2025-26 Highway Development Report, April 2026;

IBEF Infrastructure Sector Update 2025-26)

https://www.6wresearch.com/industry-report/india-steel-wire-market-outlook?utm_source

Growth Drivers

Infrastructure Expansion

Indias continued infrastructure build-out remains one of the strongest structural demand drivers for the steel wire industry. Investments across highways, bridges, metro networks, railways, logistics corridors, power transmission and urban infrastructure are increasing the use of steel wires across reinforcement, pre-stressing, suspension and structural applications. Government initiatives such as PM Gati Shakti, Bharatmala Pariyojana, the Smart

Cities Mission and sustained public capital expenditure continue to create a long-term pipeline of demand for infrastructure-linked steel products.

Technology Adoption and Product Premiumisation

The industry is gradually shifting towards specialised and value-added products with enhanced strength, durability and application-specific performance characteristics. Increasing investments in automation, digital manufacturing, advanced wire processing technologies and quality systems are supporting greater operational efficiencies and enabling the development of differentiated products across end-use industries.

Automotive Industry Growth including EV

The Indian automotive industry delivered a record performance in FY 2025-26, with domestic wholesale volumes reaching approximately 2.83 crore units, reflecting growth of around 10% year-on-year. All major vehicle categories recorded their highest-ever annual sales, led by passenger vehicles at 46.43 lakh units and two-wheelers at 2.17 crore units. Supported by rising vehicle ownership, improving rural demand, favourable financing conditions and continued economic growth, the sector remains a key demand driver for the steel wire industry and accounted for approximately 21.9% of

BWILs end-market exposure during the year.

Alongside robust volume growth, the industry continues to witness a structural shift towards electric mobility. EV penetration increased to 8.5% during FY 2025-26, with registrations exceeding 25 lakh units, supported by favourable policy measures, expanding charging infrastructure and growing consumer adoption. This transition is creating demand for higher-performance and application-specific materials, opening new opportunities across specialised steel wire categories. Looking ahead, the EV ecosystem is expected to maintain its growth momentum in FY 2026-27, with industry estimates indicating penetration levels could approach 9.5–10%

BWILstrengtheneditspresenceinhigher-valueautomotive through specialised products such as IHT wires, steel tyre cord, tyre bead wire and hose wire. Its entry into the steel tyre cord segment as Indias first domestic manufacturer represents a notable import-substitution opportunity and aligns with the broader industry focus on localisation.

The long-term outlook for the automotive sector remains favourable, supported by rising vehicle ownership, increasing domestic manufacturing and the continued evolution of the electric mobility ecosystem. Policy measures such as the PLI Scheme for Automobile and

Auto Components, PM E-DRIVE and broader localisation initiatives are expected to strengthen domestic value chains, enhance value addition and support sustained demand for advanced materials and specialised steel wire products across both conventional and electric vehicle platforms.

(Source:https://www.siam.in/news-&-updates/press-releases/auto-industry-performance-of-q4-jan--march- 2026-fy-2025-26/605

https://jmkresearch.com/indias-ev-penetration-reached- 8-5-in-fy2025-26/)

Agriculture, Poultry and Rural Development

Increasing rural infrastructure creation, agricultural mechanisation and growing poultry and fencing applications are broadening the addressable market for steel wire products. Government programmes focused on rural development, irrigation expansion, agricultural modernisation and farm infrastructure continue to support demand across agriculture-linked applications and rural markets.

Capacity Expansion

Capacity additions across the steel and productdownstream manufacturing ecosystem continue to support industry growth by improving supply availability, enhancing product diversification and strengthening regional market access. Ongoing investments in manufacturing infrastructure and specialised production capabilities are expected to improve scale efficiencies and support demand across both conventional and higher-value steel wire applications.

Strong Domestic Steel Demand

Indias expanding industrial base, growing manufacturing activity, urbanisation and infrastructure investments continue to underpin long-term steel consumption.

Demand from key sectors including construction, automotive, engineering, power, railways, consumer durables and industrial manufacturing is supporting sustained growth across the steel value chain, creating a favourable demand environment for downstream steel wire manufacturers.

Supportive Government Measures

Government initiatives such as PM Gati Shakti, Bharatmala Pariyojana, Make in India 2.0, the Production Linked

Incentive (PLI) Scheme, the National Steel Policy, PM E-DRIVE and various infrastructure and manufacturing-focused programmes continue to support industrial growth, localisation and domestic value creation. These initiatives are expected to strengthen manufacturing competitiveness, encourage capacity creation and support long-term demand across steel-intensive sectors.

China+1 Strategy (Import Substitutes)

The ‘China Plus One strategy continued to gain momentum during FY 2025-26 as global manufacturers increasingly sought to diversify supply chains, reduce concentration risk and strengthen sourcing resilience. At the same time, moderating Chinese steel output from its

2021 peaks, rising trade protection measures and growing regulatory scrutiny have encouraged buyers to broaden their supplier base beyond traditional sourcing markets.

These developments are creating meaningful opportunities for Indian steel wire manufacturers, supported by competitive manufacturing capabilities, improving quality standards and government initiatives such as the Production-Linked Incentive (PLI) Scheme, the National Steel Policy and Make in India 2.0. The trend is further reinforced by increasing localisation and import-substitution efforts across key sectors, including automotive, engineering, infrastructure and industrial manufacturing.

BWIL is well positioned to benefit from these structural shifts through its diversified established export presence, internationally recognised certifications and CBAM readiness, which supports access to regulated markets such as the European Union.

Collectively, these trends provide a favourable long-term backdrop for quality-focused and value-added steel wire manufacturers.

Sustainable Manufacturing

Sustainability considerations are increasingly influencing manufacturing practices and procurement decisions across global industries. Greater emphasis on energy efficiency, lower emissions, water conservation and environmentally responsible production is accelerating investments in cleaner technologies and resource-efficient manufacturing processes. Regulatory developments and evolving customer preferences are expected to continue supporting demand for sustainable manufacturing capabilities across the steel value chain.

Company Overview

Bansal Wire Industries Limited (hereafter referred to as

‘the Company or ‘BWIL) is one of Indias leading steel wire manufacturers, with a legacy spanning for around nine decades and a well-established presence across domestic and international markets. Originating from a wire trading business founded in 1938 and incorporated as a manufacturing company in 1985, BWIL has evolved into a diversified steel wire solutions providercateringto that supports access a broad spectrum of end-use industries. The Company is recognised as the largest stainless steel wire manufacturer in India by volume and the second-largest steel wire manufacturer in the country by volume, reflecting its scale, manufacturing capabilities and longstanding customer relationships.

FY 2025-26 was a year in which BWILs strategic identity became meaningfully more differentiated.

Company delivered its highest-ever annual sales volume, commissioned new specialty wire lines and advanced its next-generation manufacturing investments while acrosscontinuing to serve a diversified key end-use sectors, including automotive, general engineering,infrastructure,hardware,consumerdurables, power and transmission, agriculture, construction and auto replacement with the product breadth and supply reliability that define its market standing.

BWILs manufacturing platform, spread across five facilities and anchored by its flagship Dadri plant, provides andthe Company with significant execution capabilities. As Indias largest single-location steel wire manufacturing facility and among the largest in

Asia, the Dadri plant represents a key milestone in BWILs growth journey. FY 2025-26 saw meaningful additions to this range. Induction Hardened and Tempered (IHT) wire was commercially introduced, with early customer response tracking ahead of expectations. Steel tyre cord and hose wire progressed through OEM qualification processes and the Companys B2C product range covering agriculture, fencing and poultry applications saw expansion, addressing demand through the from inclusion of higher- a growing rural and semi-urban customer segment. These additions reflect a deliberate transition: from a broad-based commodity wire producer toward a manufacturer with a growing specialty and value-added offering.

BWIL serves more than 5,000 customers and exports its products to around 40 countries by a diversified customer base and a deliberate strategy to maintain balanced exposure across customers, geographies and end-use sectors. Thisto evolving market needs, expandapproach limits dependence on any single source of demand and enhances the resilience of the business model. The strengthens the Companys ability Companys operating model, supported by a cost-plus pricing framework, helps mitigate commodity price volatility while maintaining focus on operational efficiency . and sustainablegrowth

The companys manufacturing facilities are certified under ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, IATF 16949:2016 and IS 6528:1995, underscoring the Companys focus on quality, environmental management, workplace safety and operational excellence. The

Company also maintains REACH and RoHS compliance, is an Associate Member of ISSDA and Member of ACMA toand holds a CBAM Certificate increasingly regulated export markets. Collectively, these certifications, memberships and approvals strengthen BWILs credentials as a quality-driven, compliance-ready manufacturer across diverse end-use industries and geographies.

OPPORTUNITIES AND THREATS

Opportunities

• Strong Market Position and Product Breadth

BWILs standing as Indias largest stainless steel wire manufacturer by volume, supported by a product portfolio of over 3,000 SKUs, reflects a market position built over decades that is not easily replicated. The Companys Cost-Plus pricing model provides a structural buffer against commodity price cycles, ensuring that input cost movements do not disproportionately erode margins over time. Product

Mix diversifies

Sepciality Wires.

• Manufacturing Agility and Product Versatility

The Companys manufacturing footprint combines scale, versatility and operational flexibility, enabling it to cater to diverse customer requirements across multiple sectors and applications. Its integrated manufacturing platform supports a broad portfolio of steel wire products, allowing BWIL to respond into efficiently new applications and optimise capacity utilisation. to This flexibility capture opportunities across both established and emerging segments of the steel wire industry.

• Specialty Wire Premiumisation

BWIL continues to strengthen its presence across specialisedproductcategories,creatingopportunities to participate in higher-value segments of the steel wire industry. The ongoing expansion of these offerings enhances the Companys ability to address evolving customer requirements while broadening its growth avenues. As these products gain scale and commercial traction, they are expected to support a richer product mix, greater value addition and stronger margin potential, representing a natural extension of BWILs portfolio into higher-value categories.

• Export Opportunities and China Plus One

With China continuing to moderate its steel output since the 2021 peak and global manufacturers actively diversifying supply chains, Indian steel wire producers are increasingly being evaluated and approved as reliable alternative suppliers. BWIL is well positioned to benefit from this structural shift through its CBAM certification, established export network around 40 countries and capability to supply a wide range of certified wire

• Exposure to Multiple Structural Growth Drivers base BWIL benefits from a diversified across infrastructure, automotive, general engineering, agriculture, consumer durables, power and transmission and other industrial sectors. With no single customer contributing more than ~5% of revenue and no single sector accounting for more than ~25%, the Company maintains low concentration risk and a resilient revenue profile. This balanced business mix enables BWIL to participate across multiple growth drivers while mitigating the impact of sector-specific slowdowns and supporting sustainable growth across market cycles.

• Capacity Expansion Plan

The Company significantly enhanced its manufacturing capabilities during the year, increasing installed production capacity from 5,59,000 MTPA in FY 2025 to 6,80,000 MTPA in FY 2026, with further expansion expected to take capacity around 8,90,000 MTPA in the coming years. A key milestone was the completion of Phase I of the Dadri expansion project, which added 1,20,000 tonnes of annual capacity. Beyond supporting future volume growth, this expansion strengthens BWILs ability to manufacture a wider range of high value-added and specialty products with greater consistency, improved quality

The standards and enhanced operational efficiency. expanded facility reinforces the Companys readiness to cater to evolving customer requirements while supporting its long-term strategy of increasing the share of value-added products in its efficiency portfolio. and adherence

Threats

• Raw Material Price Volatility

Wire rod is the primary raw material in steel wire manufacturing, itself derived from iron ore, coking coal and scrap steel. These inputs collectively account for approximately 70% of the Companys production costs and their prices are subject to global supply-demand dynamics largely outside the

Companys direct control and can create short-term margin pressure, particularly during periods of rapid raw material inflation.

• Global Uncertainties and Trade Dynamics

Geopolitical uncertainties can affect global trade flows, energy prices, freight costs and supply-chain stability. The developments in West Asia towards the close of FY 2025-26 highlighted the interconnected nature of global markets and the potential impact of external events on business conditions. As a company with an established export presence around 40 countries and international supply-chain linkages,

BWIL remains exposed to evolving geopolitical and trade-related uncertainties. While the direct impact on the Company during FY 26 remained limited, BWIL continues to closely monitor global developments and maintain vigilance in managing potential risks and disruptions.

• Competition from Substitute Materials

The steel wire sector faces incremental competition from aluminium, composites and advanced polymers in certain weight-sensitive or corrosion-critical applications. While steel wires mechanical properties and cost profile maintain its dominance across most end-use categories, selective erosion in specific niches particularly in automotive and consumer electronics represents a risk that product innovation must continuously address.

• Environmental Regulatory Compliance

Increasingly stringent domestic and international environmental regulations require continuing capital investment in process upgrades, emissions monitoring and reporting frameworks. While the Companys proactive compliance posture exemplified by its CBAM certification and ISO 14001 accreditation converts much of this pressure into competitive advantage, non-compliance risks for peers and suppliers could periodically affect supply chain availability and cost.

• Skilled Labour Availability

The steel wire industry requires a skilled workforce to ensure consistent product quality, operational increasingly stringent customer and technical specifications. As manufacturing processes become more specialised and technologically advanced, attracting, retaining and continuously developing qualified talent remains an important consideration. Any constraints in skilled workforce availability could impact productivity, operational performance and the pace of capability expansion.

PRODUCT-WISE PERFORMANCE

The Companys product portfolio demonstrates consistent growth, shaped by rising market demand, a customer-centric approach and ongoing improvements. Improvement initiatives, development efforts and a focus on customer requirements support this performance.

FINANCIAL OVERVIEW

Financial Performance FY 2025-26

(Rs In Million)

Particulars	FY 2025-26	FY 2024-25	YoY (%)
Revenues	41,597.9	35,071.7	18.6
EBITDA	3,234.8	2,758.7	17.3
Profit Before Tax (PBT)	2,069.1	2,102.5	(1.6)
Profit After Tax (PAT)	1, 609.4	1,463.7	10.0

Key Ratio Analysis

Particulars	March 31, 2026	March 31, 2025
Debtors Turnover Ratio (times)	7.78	8.41
Inventory Turnover Ratio (times)	6.18	7.37
Interest Coverage Ratio (times)	4.67	6.56
Current Ratio (times)	1.64	1.83
Debt to Equity Ratio (times)	0.39	0.48
Operating Profit Margin (%)	6.40	7.07
Net Profit Margin (%)	3.86	4.16
Return on Equity (ROE) (%)	11.92	16.92

OPERATIONAL OVERVIEW

BWIL achieved the highest-ever sales volume in Q3 of FY 2025-26, supported by demand from automotive, infrastructure and general engineering sectors. With the successful commissioning of the first phase of the Dadri expansion, the

Company enhanced its manufacturing integration. To advance its speciality wire portfolio, BWIL commenced commercial sales of Induction Hardened and Tempered (IHT) wire, ahead of the original timeline. The Company is further making steady progress on its steel tyre cord projects, reinforcing its operational scale. The company plans to invest Rs 200–225 crore annually for expansion, increasing its production capacity by 2,10,000 MT, comprising 1,20,000 MT at Dadri and 90,000 MT at Sanand, Gujarat facility. This expansion is expected to strengthen BWILs leadership position in Western India.

STRATEGICAL OUTLOOK:

The Company is poised for its next growth phase, reinforced by strategic capacity additions and a focus on speciality offerings. The planned expansions at the Dadri and Sanand facilities are expected to enhance production capabilities, enabling the Company to cater to rising demand across key end-user industries while improving operational flexibility and increasing profitability. The Company is strategically prioritising increasing the specialty wire portfolio, including

IHT, OHT and steel cord. Specialty products currently contribute approximately 5% of volumes and are expected to witness strong volume growth, driving the Companys EBITDA margins into double digits over the medium term, strengthening presence in automotive (including EV), infrastructure and engineering segments. The Company targets improving market share from nearly 7% to 10% over the next 2 3 years, owing to product diversification and capacity expansion, while increasing operational efficiency and margins

RISK MANAGEMENT

Risk	Impact	Mitigation Strategy
Credit Risk	Credit risk refers to the possibility of financial losses arising from a customers inability to fulfil their payment obligations. This risk relates to trade receivables and is determined by customer-specific credit worthiness, industry dynamics and country-specific default risks.	The Company manages credit risk through a structured framework that includes credit evaluation, defined credit limits and monitoring creditworthiness, supported by a sale bill discounting facility. To evaluate impaired trade receivables, the Company applies the expected credit loss (ECL) model under Ind AS 109. This uses a provision matrix, incorporating historical experience, customer behaviour and internal and external risk factors, while maintaining appropriate ECL provisions.
Liquidity Risk	Liquidity risk occurs when the Company faces difficulties in meeting its financial obligations manages liquidity risk under management through available cash flows and liquidity resources.	TheCompanysdedicatedtreasurydepartment oversight through defined policies and a governance framework. Its primary liquidity sources include cash and cash equivalents, operating cash flows and the use of purchase bill discounting facilities to ensure available liquidity funds. As a result, the Company is enabled to meet its obligations, even during the period of stress, that minimise reputational and financial disruption.
Interest Rate Risk market interest	The Company may experience interest risk as a consequence of fluctuating rates on fair value or future cash flows financial instrument. This risk may primarily arise from credit borrowings with floating interest rates.	Interest rate risk is managed through an appropriate borrowing structure and actively of a engaging with lending institutions to gain favourable terms.
Competition Risk	Intense competition from organised and unorganised players may exert pricing pressure and reduce market share.	This risk is managed through focusing on value-added efficiency products, operational and strengthening customer relationships across segments.
Quality Risk	Quality lapses may result in product rejections, reputational risk and loss of customer contracts.	To mitigate this risk, the Company has quality control systems, adherence to international certifications and continuous process monitoring and testing.
Raw Material Risk	Fluctuating steel wire and rod prices may affect margins and cost predictability. Supply disruptions could affect production sched - ules.	Long-term supplier arrangements, diversified sourcing and dynamic pricing reduce cost fluctuations.
Non-Compliance Risk	Non-compliance with environmental, labour, or industry regulations may result in penalties and operational disruptions.	The Company implements regular compliance audits, internal monitoring mechanisms and ensures adherence to evolving statutory and ESG standards.
Market Demand Risk	A slowdown in end-user industries such as automotive, infrastructure, or engineering may reduce order inflows.	The Company mitigates market demand risk through diversifying the end-user portfolio, expanding into export markets and flexible production planning aligned with demand.

HUMAN RESOURCES

The Company acknowledges the hard work, skills and commitment of its workforce across all segments of the business. In line with the organisations evolving demands, the Company has undertaken several human resource initiatives this year, including updating HR policies, structuring induction programs for new hires and conducting leadership development sessions for managers. Moreover, employees receive regular technical and safety training. Industrial relations remained cordial and cooperative during the year. As of March 3, 2026, the Company (including its subsidiary) had 4,798 permanent employees & workers and 1,050 contractual workers.

Further details are provided in the ‘social section on page 43 of this report.

INTERNAL CONTROL SYSTEMS

The Company has established an adequate internal control system and well-defined policies and procedures for all its operations and financial functions. The procedures are aligned to provide assurance for maintaining proper accounting controls, monitoring efficient and proper usage of all its assets and reliability of financial and operational reports. The internal control system is supported by all the departments of the company and an extensive audit is carried out throughout the Company. The Companys Board has an Audit Committee which comprises three members, all of whom are Independent Directors. The Audit Committee reviews significant findings of the internal audit.

CAUTIONARY STATEMENT

This Management Discussion and Analysis may include statements describing the Companys views on the industry, its objectives, projections, estimates, or expectations. These may be considered ‘forward-looking statements as defined by applicable securities laws and regulations. Such statements are based on informed judgements and estimates. Actual results could differ substantially or materially from those on various factors that might affect the Companys business and financial performance. These factors include macroeconomic conditions, demand and/or price fluctuations in the market, interest rate movements, competitive pressures, technological and legislative developments, changes in government regulations, tax laws, other statutes and incidental factors. The Company undertakes no responsibility to publicly amend, modify, or revise any forward-looking statements. This applies regardless of subsequent developments, new information, future events, or other circumstances.