Bhadora Industries Ltd Management Discussions

Global Economy

The global economy continued to navigate a challenging macroeconomic environment during CY 2025, characterised by geopolitical conflicts and trade policy uncertainty.

Despite these headwinds, economic activity remained supported by resilient labour markets, easing inflation and steady domestic demand across several major economies. According to the International Monetary Fund (IMF), global GDP growth is projected to moderate from 3.4% in CY 2025 to 3.1% in CY 2026, before improving marginally to 3.2% in CY 2027. While advanced economies are expected to witness modest growth amid subdued investment and weaker productivity, Emerging Market and Developing Economies (EMDEs) continue to account for a significant share of global expansion, supported by stronger domestic consumption, infrastructure spending and favourable demographic trends.

The global business environment continued to evolve as governments and corporates adapted to changing geopolitical and economic realities. Businesses accelerated supply chain diversification and expanded regional sourcing strategies to enhance resilience, while investments in infrastructure, digitalisation and manufacturing remained key drivers of long-term growth. At the same time, commodity markets remained volatile, reflecting fluctuations in energy, agricultural and industrial raw material prices, while evolving trade policies continued to influence cross-border commerce and investment flows. Although inflationary pressures moderated across several economies, geopolitical developments, elevated public debt and financial market volatility continue to present risks to the global economic outlook, reinforcing the need for prudent policy support and structural reforms.

(Source: World Economic Outlook by IMF, April 2026)

Indian Economy

Indias economy remained resilient during FY 2025-26, with real GDP estimated to grow by 7.7%, supported by strong domestic demand, sustained public investment, and expanding industrial activity despite a challenging global environment. Headline inflation declined to 2.0% in FY 2025-26 from 4.6% in the previous year, strengthening macroeconomic stability and improving consumer purchasing power. Policy initiatives such as the Production Linked Incentive (PLI) Scheme and the National Manufacturing Mission further strengthened the countrys manufacturing ecosystem, reinforcing Indias position as one of the fastest-growing major economies globally.

(Source: https://www.pib.gov.in/PressReleasePage. aspx?PRID=2269286®=48&lang=l; https://economictimes. indiatimes.com/news/economy/indicators/rbi-inflation-forecast- 2025-26-india-sanjay-malhotra-governor-cpi-outlook-monetary- policy-report/articleshow/125780338.cms?from=mdr)

Industrial growth remained broad-based during the year, with manufacturing emerging as a key contributor to economic expansion, supported by healthy credit growth and continued policy support. Government-led capital expenditure continued to drive infrastructure creation across transportation, energy, urban development, and industrial corridors, while private consumption remained robust, accounting for 61.5% of GDP in FY 2025-26, the highest share since FY 2011-12. India also strengthened its infrastructure landscape, with the countrys installed renewable energy capacity surpassing 250 GW as of FY 2025-26, reflecting continued investments in the power sector and energy transition, measures. Together, these developments created a stable macroeconomic environment, supporting investments across infrastructure, industrial manufacturing, and allied sectors.

(Source: https://www.pib.gov. in/PressRele asePage. aspx?PRID=2221389®=48&lang=2; https://www.pib.gov.in/ PressReleasePage.aspx?PRID=2209478®=48&lang=2 J

Outlook

Indias economic outlook remains favourable, underpinned by sustained infrastructure investments, continued industrialisation, and the Governments focus on strengthening domestic manufacturing capabilities. While external uncertainties may continue to influence global markets, Indias strong policy focus, resilient domestic economy, and growing infrastructure requirements position the country for sustained growth and create significant opportunities for industries supporting the nations development agenda.

Indian Wires & Cables Industry Overview

Indias wires and cables industry is entering a sustained growth phase, supported by a broad-based expansion across multiple end-use sectors. According to InCred Equities report, the industry is expected to grow at a CAGR of approximately 12% to reach R 1.7 lakh crore by FY 2029- 30, building on an 11% CAGR recorded during FY 2020-FY 2026 despite the disruption caused by the pandemic.

The Indian wires and cables industry is witnessing a structurally stronger cycle, supported by simultaneous investments across power infrastructure, renewable energy, electric vehicles (EVs), data centres and real estate. Unlike previous expansion phases that were largely dependent on a limited number of sectors, the current demand environment is more diversified, enhancing the industrys resilience and creating a stronger foundation for sustainable long-term growth.

It is further supported by increasing investments in capacity expansion, technology adoption and the development of higher-value products. At the same time, the market is witnessing a gradual shift towards organised manufacturers, supported by rising quality standards, certification requirements and customers preference for reliable suppliers.

Demand Mix Across End-use Industries

The Indian cable industry serves a diverse set of end-user industries, reflecting its critical role across infrastructure and industrial development. During FY 2024-25, buildings accounted for 38% of total cable demand, making it the largest end-use segment. This was followed by conventional power transmission and distribution (26%), renewable energy generation (14%), industrial applications (13%), and transportation (9%).

Power Transmission & Distribution: The Largest Demand Driver

The power transmission and distribution (T&D) segment is expected to remain the single largest growth driver for the industry over the coming years. Under the National Electricity Plan 2022-32, India plans to add 191,474 circuit kilometres of new transmission lines while doubling substation capacity by FY 3031-32. To support this expansion, planned investments of approximately ^9.15 lakh crore have been earmarked for the transmission and distribution network.

With cables accounting for nearly 14-15% of project expenditure, the T&D segment alone is expected to generate cumulative cable demand of around ~^1.37 lakh crore. The continued expansion and modernisation of the countrys electricity network are therefore expected to provide sustained opportunities for cable manufacturers catering to utility and infrastructure projects.

Infrastructure-led Growth Across Emerging Sectors Beyond conventional power infrastructure, multiple high- growth sectors are expected to contribute to industry expansion over the medium term. Indias planned infrastructure investment of approximately T143 lakh crore through FY 2029-30 is expected to create a significant pipeline of demand for cable manufacturers across transportation, urban infrastructure and commercial development projects.

The demand outlook is further strengthened by Indias target of achieving 500 GW of renewable energy capacity, the development pipeline of 8,327 MW of data centre capacity backed by hyperscaler investments, and the ongoing rollout of electric vehicle charging infrastructure. The simultaneous growth of these sectors is broadening the industrys demand base and enhancing long-term visibility for manufacturers.

Structural Shift Towards Organised Manufacturers

The industry continues to witness increasing formalisation, with customers placing greater emphasis on product quality, compliance and execution capability. According to the report, the organised sectors market share is expected to increase from 67% in FY 2018-19 to 76% in FY 2024-25, and further to 84% by FY 2029-30.

In parallel, manufacturers are increasingly focusing on export opportunities, backward integration and the development of application-specific products to strengthen competitiveness, improve operational efficiencies and enhance margins.

These structural trends are expected to support sustainable revenue growth across the organised segment.

Outlook

Indias wires and cables industry remains well positioned for long-term growth, supported by sustained investments in power transmission and distribution, renewable energy, infrastructure development, data centres and electric mobility. The convergence of multiple demand drivers, coupled with increasing formalisation of the industry, technology adoption and capacity expansion, is expected to strengthen the sectors growth trajectory over the coming years.

(Source: https://www.financialexpress.com/business/news/cable-

wire-market-seen-at-rs-l-7-lakh-crore-by-fy30-on-power-data-

centre-boom/4289565/)

Company Overview

Established in 1988, Bhadora Industries Limited (Marketed under the brand name Vidhut Cables) is an established manufacturer of industrial cables, serving the evolving requirements of Indias power transmission and distribution sector. With over three decades of industry experience, the Company has built a strong foundation in delivering reliable and quality cable solutions to government distribution companies (DISCOMs), engineering, procurement and construction (EPC) companies, and customers across diverse industrial sectors.

The Companys product portfolio has evolved in line with changing industry requirements. Its offering of Polyvinyl Chloride (PVC) Cables, the Companys range include Low Voltage (LV) Cables, LT Aerial Bunched (AB) Cables and Cross-Linked Polyethylene (XLPE) Cables, catering to a wide spectrum of electricity transmission and distribution applications. These products support reliable electrical connectivity across utility, infrastructure and industrial projects.

The Company operates a modern manufacturing facility equipped with advanced production machinery and an in-house testing laboratory, enabling stringent quality assurance at every stage of the manufacturing process.

By adhering to industry standards and continuously strengthening its manufacturing capabilities, the Company remains focused on delivering dependable cable solutions that meet the evolving needs of Indias growing infrastructure and power sectors.

Financial Performance

Particulars	FY2026	FY2025	FY2024
(=? Crore)
Revenue from	12,493.38	11,011.18	8,139.32
operations
EBITDA	1,713.17	1,697.33	904.70
EBITDA margin	13.71%	15.41%	11.12%
Profit after tax	965.96	1,017.01	501.79
Profit after tax	7.73%	9.24%	6.61%
(Margin)

Human Resource

The Companys employees are a key driver of its operational efficiency, innovation and long-term growth.

The Company remains committed to fostering a safe, inclusive and performance-oriented workplace that encourages continuous learning, skill development and employee engagement. The Company places strong emphasis on enhancing technical competencies, promoting workplace safety and maintaining harmonious industrial relations across its operations. By nurturing a culture of accountability, collaboration and continuous improvement, the Company continues to strengthen its organisational capabilities while supporting sustainable business growth.

Corporate Social Responsibility (CSR)

The Company recognises its responsibility towards creating sustainable value for the communities in which it operates. The Company endeavours to contribute to social development through initiatives aligned with applicable statutory requirements and its broader commitment to responsible corporate citizenship. Its CSR approach focuses on supporting community welfare, education, healthcare, environmental sustainability and other initiatives that promote inclusive and balanced socio-economic development. The Company remains committed to conducting its business responsibly while creating a positive and lasting impact on society.

Internal Controls

The Company has established an adequate system of internal financial controls commensurate with the size, scale and nature of its operations. These controls are designed to ensure the safeguarding of assets, accuracy and reliability of financial reporting, compliance with applicable laws and regulations, and efficient conduct of business operations. The internal control framework is supported by well-defined policies, standard operating procedures and periodic internal audits, with the findings reviewed by the management and the Audit Committee. Continuous monitoring and timely corrective actions help strengthen the overall governance framework and mitigate operational and financial risks.

Cautionary Statement

Statements made in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied due to various factors, including changes in economic conditions, government policies, market demand, raw material prices, competitive intensity and other risks beyond the Companys control. The Company undertakes no obligation to publicly update or revise any forward-looking statements based on subsequent developments, events or circumstances, except as required under applicable laws.