Management Discussion and Analysis Report for the year under review, as per regulation 34 (2) of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015 is presented as below.
The objective of this report is to convey the Managements perspective on the external environment, steel wire products and copper wire products industry, as well as strategy, operating and financial performance, material developments in human resources and industrial relations, risks and opportunities and internal control systems and their adequacy in the Company during the FY2025-26. This should be read in conjunction with the Companys financial statements, the schedules and notes thereto and other information included elsewhere in this Annual Accounts of the Company for FY2025-26. The Companys financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) complying with the requirements of the Companies Act, 2013, as amended and regulations issued by the Securities and Exchange Board of India (SEBI) from time to time.
Growth Outlook: Global economic growth is projected to steady at 3.2% in FY 2026-27, a slight softening from the 3.4% recorded in the prior fiscal year. Regional Trends: The US economy experienced sluggishness, while Europe registered modest signs of recovery backed by domestic demand. Emerging Markets and Developing Economies remained highly resilient, marking an aggregate growth rate of 4.4% Headwinds: Geopolitical conflicts in the Middle East intensified, creating volatility across energy markets, shifting trade routes, and elevating cross-border logistics costs. Strategic realignments and economic protectionism continued to affect global trade. Tailwinds: Easing monetary conditions worldwide and persistent investments in infrastructure and green energy transition remain primary engines of economic stabilization.
India remained one of the fastest-growing major economies, with a growth rate of 7.5% in FY2025-26. For FY2026-27, real GDP is projected to expand by 6.7%
Infrastructure development continues to be central to Indias growth, with initiatives such as Viksit Bharat@2047, Sagarmala, PLI scheme etc.
The Continued blockades at the Strait of Hormuz, shortages of fuel and elevated energy costs are a key risk to the Indian economy. Given its import reliance, India risks a widening current account deficit, pressure on public finances, consequent tightening in fiscal spend, higher than anticipated consumer inflation and eventual demand erosion, if the blockade continues.
Infrastructure development continues to remain a key driver of Indias economic growth, supported by initiatives such as Viksit Bharat@2047 and sustained investments in roads, ports, airports, urban infrastructure and renewable energy. Rapid urbanisation, particularly in Tier 2 and Tier 3 cities, together with the expansion of housing, metro rail, high-speed rail and airport projects, is further supporting the growth of these markets. These investments are generating strong demand for the steel as well as copper segment across the construction, electrification and automobile and industrial sectors.
Global steel demand remained subdued across several major developed markets, reflecting prolonged economic weakness and challenging market conditions. In contrast, India witnessed strong growth in
1,773 MT, supported by increased public infrastructure spending.
India continues to be one of the worlds fastest-growing steel markets, with steel consumption expected to grow at a healthy rate of 7-8% in FY2026-27. Apparent steel use is projected to reach approximately 176-178 MT during FY2026-27, supported by continued investments under the National Infrastructure Pipeline and the governments broader focus on infrastructure development, urbanisation and industrial expansion.
The Companys key raw materials, copper and steel, experienced significant price volatility during the year, influencing input costs and margins across industries. Copper prices remained volatile during FY2025-26, driven by fluctuations in demand, supply-side constraints and geopolitical developments. Supply was further affected by natural disruptions at a major mining operation in Indonesia. Demand for copper from China remained relatively subdued, primarily due to structural challenges in the real estate sector and slower industrial activity. These factors continued to create uncertainty in global copper markets and had an impact on input-cost dynamics during the year.
The Companys diversified product portfolio, comprising steel wires, wire products, wire ropes and copper products, caters to a wide range of industries. These products have significant applications in the infrastructure sector and in emerging and high-growth segments such as electrical and electronic products, industrial machinery and equipment, transportation, automotive and consumer goods.
The Government of Indias continued focus on domestic manufacturing through initiatives such as Make in India, together with increased public investment in infrastructure, is expected to create significant growth opportunities across the Companys product segments. Investments in railways, urban and rural infrastructure, automotive and electric vehicles, high-speed rail and agriculture are expected to support sustained demand and drive volume growth.
Major national infrastructure programmes, including Bharatmala, Sagarmala, the Smart Cities Mission and Parvatmala, are also expected to generate sustained demand for high-performance wire ropes and related products. These products have important applications in elevators, cranes, ports, ropeways and other infrastructure and industrial projects.
The Company is also evaluating opportunities to expand and diversify its product portfolio through the introduction of new products and business verticals. Such initiatives are expected to broaden the Companys market presence, create additional revenue streams and contribute positively to profitability over the long term.
Looking ahead, the Company expects to achieve volume growth of approximately 15-20% year-on-year in the Indian market, supported by continued infrastructure development, accelerating urbanisation and increasing demand across key end-use industries.
As a manufacturer of metal and metal-related products, the Company is exposed to a range of risks, including environmental, operational, regulatory, political, financial, market and human capital-related risks. These risks may adversely impact the Company through demand volatility, production disruptions, lower capacity utilisation, margin pressure, liquidity constraints, erosion of market share, increased compliance costs and potential legal or regulatory liabilities.
Volatility in raw material prices, fluctuations in market demand, changes in government policies and regulations, supply-chain disruptions and intensifying competition may also impact the Companys operating performance and profitability.
The Companys management regularly reviews key risk areas and evaluates appropriate mitigation measures to identify, monitor and manage potential risks. The Company remains focused on strategic adaptation, operational efficiency, prudent financial management and market diversification to mitigate these risks and maintain long-term business resilience.
The comparative chart on segment-wise/product wise performance of the Company for the Financial Year ended on March 31, 2026 is provided herein below.
| Particulars | FY 25-26 Steel | FY 25-26 Copper | FY 24-25 Steel | FY 24-25 Copper | % (increase/decrease) Steel | % (increase/decrease) Copper |
| Revenue from Operations | 46,625.22 | 1,02,048.37 | 37,629.49 | 67,303.95 | 18.59 | 51.62 |
| EBITDA | 5,199.88 | 2,174.56 | 4,908.33 | 2,942.32 | 5.94 | -26.09 |
| PAT | -479.91 | 1,006.92 | 273.72 | 2,066.37 | -276.57 | -51.27 |
As we enter Financial Year 2026-27, our strategic focus centres on completing ongoing expansions across both our Steel and Copper divisions. In the Steel division, priorities include stabilizing the production of newly introduced value-added products. Concurrently, the Copper division will focus on diversifying and widening its product portfolio.
Backed by robust market demand across both sectors, the company targets a year-over-year revenue growth trajectory of 20% to 25%. To support this scaling, we are aggressively expanding our global footprint by evaluating potential locations for new international offices.
Prudent financial management remains central to our operational stability. Given the current caps on working capital enhancements imposed by our consortium banks, we are actively optimizing our working capital cycle to operate efficiently within our established credit limits.
On the global front, we are closely monitoring macroeconomic headwinds. Ongoing geopolitical tensions in the Middle East present short-term pressures on demand—particularly within the Steel division—and continue to impact Cost, Insurance, and Freight (CIF) logistics. We are actively deploying mitigation strategies to counter these localized shipping and supply chain challenges.
We are steadily advancing our Mega Project expansion under the Government of Maharashtras Package Scheme of Incentives (PSI). Phase 1 of this expansion is nearing completion, while Phase 2 remains on track for completion by March 2027.
Crucially, this project prioritizes high-margin, value-added products tailored to evolving industry needs, moving away from low-margin, volume-driven legacy lines. Financial yields from this capital expenditure are projected to commence in late FY 2026-27, with the full impact materializing in FY 2027-28.
Environmental stewardship is deeply embedded in the culture of BIL. Since inception, our Nardana production facility—established in 2012—has operated with strict adherence to environmental and safety benchmarks. We continue to transition toward low-emission manufacturing by scaling up recycling initiatives, absorbing green technologies into our core production workflows, and prioritizing renewable energy. To power our operations sustainably, we are expanding our existing 3 MW captive Solar Power Plant at Nardana with an additional 4 MW installation in the current fiscal. This brings our total captive capacity to 7 MW, shifting approximately 80% of our daytime operational power consumption to clean energy. Our commitment to sustainability was validated this year by an EcoVadis Silver rating. Looking ahead, we are actively refining our operations to achieve the EcoVadis Gold standard.
Aligned with evolving global demand trends, we are well-positioned to capitalize on strong domestic growth. Indias infrastructure momentum- particularly in the power transmission, railways, urban and rural infrastructure, automotive (including EVs) and agricultural sectors is expected to support robust volume growth across our portfolio.
1. Steel Segment
Complementing this strong domestic foundation, export sales are projected to strengthen progressively, driven by enhanced product positioning and targeted penetration into high-value international markets.
The Companys internal audit system has been reviewed and updated to ensure that assets are safeguarded, established regulations are followed and outstanding issues are promptly remedied. The audit committee regularly looks over the internal auditors reports, notes any findings from the audit and takes corrective action, whenever necessary. To ensure the proper implementation of the internal control systems, it maintains constant communication with external as well as internal auditors.
Operational Performance Review - FY 2025-26 vs FY 2024-25
Production and Sales Volumes
Production and Sales Volumes
Revenue from Operations
2. EBITDA (Earnings Before Interest, Taxes, Depreciation & Amortization)
? EBITDA declined to approximately ?7,558.97 lakhs compared to ?8,020.08 lakhs last year, a decrease of 5.75%.
? Despite the sharp increase in revenue, operating margins came under pressure from higher input and other operating costs, indicating that the strong topline growth did not fully translate into proportionate operating profitability.
o PBT declined sharply to 705.06 lakhs in FY 25-26 compared to 2,480.02 lakhs in FY 24-25, a decrease of 71.57%. o The steep fall in PBT, despite strong revenue and volume growth, was driven by a combination of higher finance costs (up 21.12% to 4,347.88 lakhs), higher depreciation (up 28.50% to 2,506.03 lakhs on the back of ongoing capex/capital work-in-progress), and the other items discussed below. o Importantly, the rise in finance cost is not on account of higher cash interest cost on borrowings - the actual cash interest cost (interest on fixed loans, working capital interest and bank charges/ commission) rose only marginally, by 0.83% (2,366.83 lakhs vs 2,347.37 lakhs). Interest on fixed loans in fact declined from 475.01 lakhs to 266.47 lakhs, while working capital interest rose from 1,449.71 lakhs to 1,668.70 lakhs. The increase in total finance cost is almost entirely attributable to (a) a higher notional, non-cash unwinding of interest cost on financial liability of 1,395.67 lakhs (up from 1,253.42 lakhs), and (b) a swing in forex loss embedded within finance cost, from a gain of 10.94 lakhs last year to a loss of 585.38 lakhs this year. o Beyond finance costs and depreciation, the single largest driver of the PBT decline was the absence of Industrial Promotion Subsidy (IPS) income in FY 25-26, compared to 34.73 Crore of such income recognised in FY 24-25; excluding that subsidy income, FY 24-25 would itself have reported a loss before tax, underscoring that the year-on-year fall in PBT is not a reflection of weaker underlying operations.
? No Subsidy Income Recognised During FY 2025-26 - Primary Reason for Decline in Profitability: The principal reason for the decline in Profit Before Tax is the absence of Industrial Promotion Subsidy (IPS) income during FY 2025-26. During FY 2024-25, the Company recognised Industrial Promotion Subsidy income amounting to 34.73 Crore, which had a significant positive impact on the reported profitability. The total subsidy entitlement under the PSI Scheme, 2007 amounted to 331.94 Crore, which had been fully accrued up to Q3 of FY 2024-25. Consequently, no subsidy income has been recognised from Q4 of FY 2024-25 onwards, including the entire FY 2025-26. Accordingly, while FY 2024-25 included subsidy income of 34.73 Crore, FY 2025-26 did not include any such income. If the subsidy income recognised in FY 2024-25 is excluded, the Company would have reported a loss before tax during FY 2024-25. Therefore, the year-on-year decline in reported Profit Before Tax is primarily attributable to the non-availability of subsidy income and not due to deterioration in the Companys operating performance.
Finance Cost Composition: Finance cost of 4,347.88 lakhs (FY 24-25: 3,589.85 lakhs) comprises interest on fixed loans (266.47 lakhs vs 475.01 lakhs), interest on working capital (1,668.70 lakhs vs 1,449.71 lakhs), unwinding of interest cost on financial liability - a notional, non-cash item - (1,395.67 lakhs vs 1,253.42 lakhs), bank charges & commission (431.66 lakhs vs 422.65 lakhs), and forex (gain)/loss (585.38 lakhs loss vs 10.94 lakhs gain). The actual cash interest cost on borrowings was thus nearly flat year-on-year, with the increase in finance cost driven mainly by the notional unwinding interest charge and the forex loss component.
Unrealised Forex Loss on Capital Goods: The Company recognised an unrealised foreign exchange loss of 426.90 lakhs in Q4 FY 25-26 on capital goods, primarily due to fluctuations in exchange rates, including depreciation of the Indian Rupee arising from global geopolitical tensions and volatility in currency markets. For the full year FY 25-26, the cumulative unrealised forex loss on capital goods stood at 568.38 lakhs.
1 Labour Codes Provision: Pending notification of all rules under the Labour Codes as of 31.3.2026, the Company has provided approximately 237.18 lakhs on an adhoc/provisional basis. This estimate is subject to revision once the relevant rules are notified and become effective. Associate Company Settlement (Ashoka Precon Pvt. Ltd.): During the year, the Associate Company resolved an ongoing property tax dispute with Sinnar Nagar Parishad under the amnesty scheme announced by the Government of Maharashtra, paying property tax dues of 113.35 lakhs and obtaining a waiver of the related penalty. The Companys share of this impact has been recognised while accounting for its investment in the Associate under the equity method, contributing to a share of loss of 55.02 lakhs in the consolidated results for the year. The matter now stands fully resolved with no further contingent liability. Taken together, these forex and provisioning items — together with the sharp increase in finance costs and depreciation — explain why PBT fell steeply even as revenue and volumes grew strongly during the year.
? Volume Trend: Both steel and copper delivered strong double-digit volume growth this year, a marked turnaround from last year when steel volumes had contracted. - Revenue Growth: Revenue grew nearly 40%, comfortably outpacing volume growth of ~20-21%, p ointing to improved realisations and product mix. - Profitability: EBITDA margins came under pressure and PBT fell sharply, weighed down by the absence of Industrial Promotion Subsidy income (34.73 Crore recognised in FY 24-25 versus none in FY 25-26), higher finance costs, higher depreciation, unrealised forex losses on capital goods, and a labour code-related provision. Notably, the rise in finance cost was driven mainly by a notional unwinding interest charge and a forex loss swing embedded within finance cost, rather than by higher cash interest cost on borrowings, which stayed nearly flat, and the subsidy non-recognition alone accounts for the largest share of the year-on-year PBT decline. - Strategic Implication: While volume and revenue momentum is strong and encouraging, managing finance costs (linked to the ongoing capex cycle), currency exposure on capital goods, and other cost pressures will be key to translating topline growth into sustainable bottom-line performance going forward.
Thus it can be concluded that FY 25-26 was a year of strong volume and revenue growth, with both steel and copper segments posting double-digit gains and overall revenue rising nearly 40%. However, profitability came under pressure at both the EBITDA and PBT levels, driven principally by the non-recognition of Industrial Promotion Subsidy income
Our people are at the core of our business transformation and sustained scaling efforts. To support our ambitious expansion plan, leadership is proactively investing in internal talent development through several aggressive strategic actions:
? Optimizing Performance: Deploying stronger, metrics-driven performance evaluation systems. - Accelerating Growth: Implementing fast-track continuous training programs to upskill our workforce. - Cultivating Talent: Actively identifying and promoting hig h-potential leaders from within. - Fostering Collaboration: Championing strong cross-functional teamwork and open communication channels between staff and management.
By driving these initiatives, we encourage active employee participation in our business improvement goals while establishing a transparent culture where feedback is acted upon quickly.
1. DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THEREFOR, INCLUDING
There is no significant change of 25% or more as compared to the immediately previous financial year in the following key financial ratios. The company as such have shown improvement in all the parameters, the improvement in the abovementioned financial ratios is evidence for the same. However, said ratios provided to the stakeholders for reference and better understanding purposes.
| Particulars | FY 2024-25 | FY 2025-26 | % change |
| (i) Debtors Turnover (in times) | 8.43 | 9.81 | 16% |
| (ii) Inventory Turnover Ratio (in times) | 15.41 | 17.42 | 13% |
| (iii) Interest Coverage Ratio* | 1.69 | 1.16 | -31% |
| (iv) Current Ratio | 1.51 | 1.40 | -7% |
| (v) Debt Equity Ratio | 1.49 | 1.36 | -9% |
| (vi) Operating Profit Margin (%)* | 5.78 | 3.45 | -40% |
| (vii) Net Profit Margin (%)* | 2.36 | 0.48 | -80% |
| (viii) sector-specific equivalent ratios, as applicable | NA | NA |
The Operating Profit Margin variance is due to increase in operating costs during the year, not commensurate with the increase in revenue from operations. The Net Profit Margin variance is primarily because of increase in finance cost, depreciation and unrealised foreign exchange loss on capital goods during the year. Interest Coverage Ratio variance is due to increase in finance cost during the year on account of unwinding of interest cost on financial liability and foreign exchange fluctuation, coupled with lower operating profit.
Return on Net-worth for FY2025-26 is 4.62 as compared to previous financial year of 17.05. The reason for such decrease is due to decrease in profit as explained hereinabove.
The Company has followed the treatment laid down in the Accounting Standards prescribed by the Institute of Chartered Accountants of India, in the preparation of financial statements. There are no audit qualifications in the Companys financial statements for the year under review.
Where in the preparation of financial statements, a treatment different from that prescribed in an Accounting Standard has been followed, the fact shall be disclosed in the financial statements, together with the managements explanation as to why it believes such alternative treatment is more representative of the true and fair view of the underlying business transaction.
Statement in this Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be forward-looking statements within the meaning of applicable Securities Laws and Regulations. Actual results could differ materially from those expressed or implied. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent development, information or events or otherwise.
Important factors that could make a difference to the Companys operation include raw material availability and prices, cyclical demand and pricing in the Companys principal markets, changes in the governmental regulations, tax regimes, forex markets, economic developments within India and the countries with which the Company conducts business and other incidental factors.
For and on behalf of Board of Directors BEDMUTHA INDUSTRIES LIMITED
Sd/- Kachardas Bedmutha Chairman DIN: 00715619
Date: August 12, 2026 Place: Sinnar-Nashik
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