Bharat Wire Ropes Ltd Management Discussions

I. Overview

The purpose of this report is to present Managements insights into the external environment and the industry, alongside discussions on strategy, operational and financial performance, key developments in human resources and industrial relations, as well as an assessment of risks, opportunities, and the adequacy of internal control systems during the Financial Year 2025-26. It should be reviewed in conjunction with the Companys financial statements, including schedules, notes, and other sections of the Integrated Report and Annual Accounts for 2025-26.

The Companys financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS), adhering to the requirements specified under the Companies Act, 2013, as amended, and regulations prescribed by the Securities and Exchange Board of India (SEBI).

II. External Environment

1. Global Economy

The global economic stability of Financial year 2025-26 has been severely disrupted by Geo political situation and an outbreak of war in the Middle East in last quarter of the year, introducing logistical bottlenecks at the vital Strait of Hormuz that threaten the world with sticky inflation, volatile commodity prices, and tighter credit conditions. Consequently, the IMF baseline forecast projects global growth to slow to 3.1% in 2026 and 3.2% in 2027 down from an estimated 3.4% during a turbulent 2025, with severe downside risks threatening to plummet growth to a recessionary 2%. Regionally, advanced economies are slowing to 1.8%, though the US remains somewhat resilient at 2.3% growth due to fiscal policy and lagged rate cuts, while the Euro area drags at 1.1% due to compounding energy shocks and a strong currency. Meanwhile, emerging market growth is cooling to 3.9% as Chinas structural challenges drag its growth down to 4.4%, whereas India serves as a rare bright spot with its forecast revised upward to 6.5% due to reduced tariffs and strong momentum.

Outlook

The global economy is moving through a highly complex phase of decelerating momentum, with baseline projections indicating a delicate navigation between growth and severe geopolitical friction. The IMF projects global growth to cool to 3.1% in 2026 before stabilizing slightly at 3.2% in 2027, whereas the World Bank flags a more pessimistic scenario near 2.5% due to intense macro strains. The primary drag on this outlook stems from persistent military conflicts in West Asia and the Middle East, which have closed off vital sea lanes like the Strait of Hormuz, driving Brent crude oil prices significantly in upward trend. Consequently, this energy price shock threatens to trigger a resurgent uptick in global headline inflation during 2026, forcing a tighter stance from central banks before inflation finally resumes its downward trajectory in 2027. Beneath the surface, economic fortunes are diverging sharply; advanced economies are growing at a sluggish pace below 2%, while Emerging Market and Developing Economies (EMDEs) maintain a healthier 3.9% baseline.

2. Indian Economy

Indias economic trajectory for 2026-27 is defined by a transition toward disciplined stability, with GDP growth projected to moderate to between 6.6% and 6.9% as the economy navigates external volatility. This cooling, while reflective of a broader global slowdown, is compounded by persistent headwinds, particularly elevated crude oil prices stemming from West Asian geopolitical tensions, which pressure Indias import bill and keep headline inflation hovering near 5.3%. Consequently, the Reserve Bank of India continues to maintain a cautious, keeping borrowing costs relatively high. Despite these challenges, the economy retains significant structural resilience, robust private consumption particularly in rural markets and a well-capitalized banking system that remains a bedrock of financial stability. Fiscal management remains a delicate balancing act, as the government continues to prioritize strategic infrastructure capital expenditure while managing subsidy outlays to insulate the public from global commodity shocks. Ultimately, the medium-term outlook hinges on mitigating supply-side bottlenecks and leveraging recent Free Trade Agreements to bolster exports, setting the foundation for a potential growth acceleration as global trade pressures ease in the following fiscal year.

III. Industry Structure and developments:

The Indian wire rope industry is an important component of the infrastructure and industrial ecosystem, catering to sectors such as construction, mining, steel, ports and shipping, oil & gas, power, elevators, material handling, engineering and renewable energy. The industry comprises manufacturers of general-purpose as well as specialised and high-performance wire ropes, with increasing emphasis on quality, safety, durability and application-specific solutions.

The industry is witnessing steady growth driven by infrastructure development, urbanisation, industrialisation and increasing mechanisation. Investments in roads, railways, ports, mining, power, renewable energy and manufacturing are expected to support demand, while technological advancements and growing requirements for high-strength and specialised products are creating new opportunities in domestic as well as export markets.

1. Our Business:

Bharat Wire Ropes Limited ("the Company") is a leading steel wire rope manufacturing company established in the year 1986. Wire ropes are a value-added product, formed from wire rods, which falls in the long steel category of steel products. Over the years, with significant improvement in the strength of steel wire ropes manufactured, the usage of these steel wire ropes has significantly increased in various diverse applications.

The wire ropes, Slings, Spiral Strands are used in general engineering, fishing, elevators, cranes, material handling, power transmission, suspension bridges, onshore / offshore oil exploration, ports and shipping, mining, defence, railways and allied industries. The Company caters to a rich mix of clients ranging from Overseas Consumers, Private Players, Government and Semi - Government Organizations. Providing service to a variety of clients has helped the company develop versatility which makes it better equipped to handle diverse / heterogeneous kinds of enquiries.

2. Segment-wise or Product-wise performance:

The Company is engaged solely in the business of manufacture and sale of Wire & Wire Ropes.

3. Business Strategy: i. Expansion of Companys presence in the domestic markets:

The Company is actively pursuing marketing initiatives to broaden and strengthen its footprint in current business sectors. By targeting markets where it can offer cost-effective, cutting-edge products, the Company aims to establish closer relationships with key end-users, enhancing client engagement significantly. Additionally, the Company has achieved BIS certifications for steel wire ropes and strands, among other products, and has secured approvals from major engineering consultants and equipment suppliers, underscoring its commitment to quality and industry standards. These efforts reflect the Companys proactive approach to expanding its market presence and fostering trusted partnerships in the industry.

ii. Focus on development of international markets for the Companys Products:

The Company is actively focusing for distribution of its products across Europe, the US, the Middle East, Nepal, New Zealand, Australia, Singapore, South Africa, Vietnam, and other key markets. Leveraging state-of-the-art machinery from South Korea and Germany, the Company remains at the forefront of global competition, ensuring cutting-edge technology in its operations.

iii. Strengthening of product portfolio and developing capabilities to manufacture a wider range of products:

The company has strengthen the product portfolio by developing capabilities to manufacture a wider range of products. To provide quality product at reasonable prices has always been the ultimate aim of the Company. The Company manufacture all rope grade wires at its plant in Chalisgaon, enabling the Company to manufacture and offer an increased range of high quality wire rope products, including but not limited to marketing high performance crane ropes for ports, large diameter spiral strands for structures and bridges, elevator ropes, high performance mining ropes, long-life-cycle fishing ropes, onshore and offshore ropes, swaged ropes and special ropes for construction sector. Further, strategic efforts have been made to focus on improving marketing enhancing productivity and maximizing plant utilization by minimizing wastage, reducing material holding costs and focusing on sustainable operations. We continue to create consistent value through capacity expansion, technological innovation, and sustainable manufacturing techniques.

iv. Meeting Quality Standards and developing customer focus:

In our commitment to sustaining a globally respected reputation, we have purposefully expanded our product range and strengthened our market reach. Our products are precisely designed and undergo thorough quality inspections throughout every stage of production, ensuring optimal safety and alignment with top-tier industry standards. Backed by a robust technical support network, we provide customized solutions tailored to individual client needs, drawing on the capabilities of our modern manufacturing infrastructure and highly experienced R&D teams. Our technically proficient team is dedicated to achieving zero defects and minimizing rejections. With robust testing facilities in place, all products undergo thorough scrutiny before leaving our factory, ensuring minimal grievances and enhancing customer satisfaction.

Developing a strong customer focus means aligning our operations, strategies, and innovations with the needs and preferences of our customers. By actively listening to feedback, personalizing solutions, and ensuring consistent service quality, we aim to build lasting relationships and enhance overall customer satisfaction ultimately driving business growth and loyalty.

Chalisgaon Plant:

Plant is fully integrated and synchronized to manufacture value added ropes ranging from 6 mm to 100 mm with various type of rope construction

The Company has ISO 9001-2015, ISO 14001-2015 and ISO 45001-2018 certification (Quality Management System, Environment Management system and Occupational Health and Safety Management System respectively) for its Manufacturing units. Further, Company has obtained accreditation under the BIS Certification as per IS 2365, IS 1835, IS 15: 1855, IS: 1856, IS 2266, IS: 4521, IS: 10891 Part-1, IS: 14268 Lloyds Register Approval and Certificate of Compliance (CE) and Occupational Health and Safety Management System.

Atgaon Plant:

Company has been accredited with ISO 9001 certification by TUV SUD South Asia Private Limited for our Atgaon plant. Plant is approved by Central Organization Railway Electrification (CORE) Research Designs &Standards Organization (RDSO), Power Grid, defense applications, certificate from Indian Register of Shipping for Manufacturer of Steel Wire Ropes etc.

IV. Opportunities and Threats

Massive investments in roads, bridges, ports, metros, airports, and smart cities create a consistent demand for steel wire ropes used in construction, lifting, and support applications. Schemes like Make in India, Atmanirbhar Bharat, Infrastructure development promote domestic manufacturing and boost demand for industrial inputs like wire ropes. Growth in sectors such as mining, shipping, oil & gas, power transmission, and railways requires heavy-duty ropes for operations, offering long-term volume growth. Innovations in coating, tensile strength, corrosion resistance, and safety features allow companies to develop value-added and specialized wire ropes for high-performance applications.

Fluctuations in the prices of Steel, Zinc and LNG directly affect production costs and profit margins. In India, low-cost, unregulated players pose a pricing threat to organized manufacturers, especially in price-sensitive markets. Cheap imports from countries like China can undercut local players, particularly in segments like general-purpose ropes or coated variants. Since wire ropes are largely tied to sectors like construction, mining, and shipping, economic downturns or infrastructure delays can impact demand.

V. Risks and Concerns

In todays highly volatile macro environment, intense geopolitical conflicts and fractured shipping lanes represent a critical risk to Bharat Wire Ropes Limiteds international footprint, where escalating trade protectionism, targeted sanctions, and aggressive tariff structures frequently disrupt cross-border logistics and threaten export competitiveness. all of which can hinder its ability to serve international customers. These risks are further intensified by unstable foreign exchange rates and rising protectionist policies, which could significantly affect both procurement costs and export competitiveness. Moreover, global instability often disrupts supply chain continuity and limits expansion into new markets, constraining Bharat Wire Ropes growth potential.

The domestic steel sector in India is particularly vulnerable to the influx of lower-cost imports and shifts in demand dynamics. Cheaper imports have the potential to erode market share, revenue, and profit margins for Bharat Wire Ropes Limited. However, the company can mitigate these challenges by enhancing product quality, optimizing its supply chain, and expanding its customer base.

We operate in a dynamic environment which not only provides opportunities but also exposes the business to various risks. To proactively identify and manage key risks for achieving our strategic objectives. Growth of the sector is depended on the enlargement of allied sectors. Forecasted plans and projections are subject to risk. Various kinds of risk associated with the development are Liquidity Risk, Market Risk, Regulatory Risk, Financial Risk, Market Risk and Operational Risk. Other dominant threats faced by the Company are in the form of competition it faces in the industry. In particular, the Company competes with other wire rope manufacturing companies, both in India and abroad, on the basis of a number of factors, including but not limited to quality, time of delivery and price. Fluctuations in the price, availability and quality of raw materials used in our manufacturing process could have a material adverse effect on cost of sales or the Companys ability to meet customer demands. There can be no assurance that the Company will always be successful in its efforts to protect the business from the volatility of the market price of raw materials, and the business can be affected by dramatic movements in prices of raw materials.

Risk is the vital factor of every business. The Company has in place a Risk management Committee which outlines the amount of risk involved in the business and various techniques for risk mitigation & Risk minimization. The Company believes that managing risks helps in maximizing returns. The Companys approach for addressing business risks is comprehensive and includes identification of Risks, periodic review of such risks and measures to for mitigating such risks.

Key Risks	Impact on the Company	Mitigation
A Slowdown in Economic Growth	Globally, slowdowns in major markets like, Europe, Middle East and the U.S. have reduced demand across key sectors such as infrastructure, construction, mining, shipping, and oil & gas, leading to oversupply and price pressures. Geopolitical tensions and trade barriers further disrupt supply chains and international sales. On the domestic front, Indias economy remains relatively resilient, driven by government infrastructure spending, industrial growth, and initiatives which help sustain demand in sectors like construction, railways, ports, and mining. However, persistent inflation or rising interest rates could slow capital investments and infrastructure projects, potentially dampening demand for steel wire ropes.	To constantly review the changes in economic conditions and plan to mitigate the same.
Changes in Technology	Technology risk can adversely affect the company by limiting its ability to innovate and maintain efficient operations. If the company fails to keep up with technological advancements, it may experience reduced product quality, higher costs, and loss of competitive advantage. This can lead to decreased customer satisfaction, lower sales, and ultimately, diminished profitability and market position.	Company should prioritize continuous investment in research and development to stay ahead of industry advancements. It must actively monitor emerging technologies and market trends to adapt quickly. Implementing regular training programs ensures the workforce is skilled in new technologies. Collaborating with technology partners and suppliers can also drive innovation.
Supply of Raw Material	Supply of raw material risk can disrupt the companys production schedule, leading to delays and increased costs. Dependence on limited suppliers or geopolitical factors can further exacerbate these challenges, impacting overall business stability and growth. Continuation of Geopolitical conflict situation may adversely affect volume and profitability.	To enter into an understanding with the suppliers in respect of long term supply of raw material. Keep multiple suppliers and monitor price movement regularly. Further company to maintaining inventory levels of 2- 3 months to counter supply disruptions.
Supply Chain	Supply chain risk can lead to disruptions in the timely delivery of raw materials and finished goods, affecting the companys production and customer commitments. It may result in increased costs due to delays, alternate sourcing, or expedited shipping. Prolonged disruptions can harm customer relationships, reduce revenue, and impact profitability. A weak supply chain also limits the companys ability to respond to market changes effectively.	Building strong relationships with multiple, reliable suppliers ensures better flexibility during disruptions. Maintaining adequate inventory buffers and adopting demand forecasting tools help manage uncertainties.
Fluctuation in Cost of raw Material	Fluctuations in the cost of raw materials can significantly affect the companys production costs and profit margins. Sudden price increases may lead to higher expenses that cannot always be passed on to customers, reducing overall profitability. Frequent cost changes also make budgeting and financial planning challenging. This volatility can impact pricing strategies, competitiveness, and long-term contract stability.	The company can establish long-term contracts with suppliers, bulk buying to lock in prices and ensure stability. Diversifying the supplier base helps in sourcing materials competitively. Additionally, improving inventory management and operational efficiency can reduce overall material wastage and cost impact.
Industrial Actions	The Company is exposed to strikes, work stoppages or increased wage demands by the employees or any other kind of disputes with employees of the Company could adversely affect its business and results of operations.	Be Proactive in addressing disputes & grievances. Address the issue as soon as the employee raise them.
Maintenance of adequate health and safety standards	Company is subject to the risk of industrial accidents which could have significant adverse consequences for Companys workers and facilities, as well as the environment. Such incidents could lead to production stoppages, the loss of key assets, or put at risk employees (including those of sub-contractors and suppliers) or persons living near the affected site. In addition, such incidents could damage Companys reputation, leading to the rejection of products by customers, These events could have a material adverse effect on the Companys revenues, results of operations, profitability and cash flows and diversion of management time into rebuilding and restoring its reputation.	The Company maintains a robust health and safety management framework through regular safety audits, risk assessments, employee training programs, and strict adherence to applicable health, safety, and environmental regulations. Safety awareness initiatives, preventive maintenance of equipment, use of appropriate personal protective equipment (PPE), and continuous monitoring of workplace conditions help minimize occupational hazards and ensure a safe working environment.

VI. Internal Control System and their adequacy:

Company has in place robust Internal Control system to maximize the effectiveness and efficiency by including activities that are tailored to the nature, size and complexity of the entity. The Company follows proper hierarchy for reporting of routine activities. Direct access to the senior Management is available in extreme cases. The Company has framed whistle blower policy to report concerned areas to the Management.

The Companys internal control system commensurate with the size, scale and complexities of its operations. The Audit Committee actively reviews the adequacy and effectiveness of the internal control systems and suggests improvements to strengthen the same.

The Company has appointed an independent firm of chartered accountants to monitor the internal audit of its activities, based on an internal audit plan, which is reviewed each quarter in consultation with the statutory auditors and approved by the audit committee.

Management is responsible for establishing and maintaining internal financial controls. The Company has adequate Internal Control system with reference to financial statements and to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposition. During the year, such controls were tested and no reportable material weaknesses in the design or operation were observed.

Bharat Wire Ropes Limited has upgraded its Governance, Risk, and Compliance system, reinforcing its ability to monitor and manage controls effectively. The Management conducted a comprehensive review of the internal financial controls and updated the risk control matrix, ensuring alignment with leading industry practices.

These collective efforts have strengthened the Companys control environment, ensuring operational efficiency, timely identification of control gaps, and continued support for Companys strategic growth objectives.

VII. Internal Audit

Internal Audit at the Company is an independent and objective activity designed to provide assurance to senior management and add value by identifying opportunities to deliver business benefits and improvements to internal controls. It helps us accomplish our objectives by bringing a systematic and disciplined approach to evaluating and improving the effectiveness of processes, controls, and governance. The internal audit function carries out a focused and risk-based annual internal audit plan approved by the Audit Committee.

VIII. Financial Performance:

The Financial statements of the Company are prepared in Compliance with the Companies Act, 2013 and significant accounting policies used for the preparation of financial statements are disclosed in the notes to financial statement.

Historical Financial Performance

(Rs. in Lakhs)

Particulars	FY26	FY25	FY24
Revenue from Operations	59,054.28	61,931.62	62,183.53
Total Expenses	45,979.05	48,690.22	45,782.07
EBITDA	13,075.23	13,241.40	16,401.46
EBIDTA Margins (%)	22.14%	21.38%	26.38%
Depreciation and amortisation expenses	2,377.67	2,206.08	2,116.36
Finance Cost	1,104.40	1,332.89	1,478.63
Other Income	101.98	79.91	82.16
PBT	9,695.14	9,782.33	12,888.63
Tax	2,449.58	2,543.23	3,254.41
PAT	7,245.56	7,239.11	9,634.22
PAT Margins (%)	12.27%	11.69%	15.49%
Other Comprehensive Income	52.64	13.74	(31.55)
Total Comprehensive Income	7,192.92	7,225.36	9,602.66
Diluted EPS	7.66	8.10	14.17

Revenue from Operations:

Revenue for the year is lower by 5% YOY basis on account of decrease in sales realization due to global geo political situation.

Profit before Depreciation, Financial Cost, Exceptional Items and Tax (PBIDT):

PBIDT is lower on account of decrease in sales realization and less margins as compared to previous year.

Finance Cost:

Finance cost has decreased on account of decrease of borrowings.

Ratios:

Ratios	FY 2025-2026	FY 2024-2025	Variance
Debtors Turnover Ratio	5.86	6.81	(13.96%)
Inventory Turnover Ratio	2.55	3.11	(17.95%)
Current Ratio	6.57	4.51	45.80%
Debt Equity Ratio	0.09	0.18	(48.49%)
Interest Coverage Ratio	11.89	9.99	19.01%
Operating Profit Margin (%)	18.11%	17.95%	0.89%
Net Profit Margin (%)	12.27%	11.69%	4.97%
Return on Net worth	9.36%	10.36%	(9.62%)

Note: Explanation for change in ratio by more than 25%

1. Debt Equity Ratio improved on account of repayment of Borrowings and retained earnings.

2. Current Ratio improved on account of utilization of cash generated into operations

				Historical Balance Sheet
Particulars	FY26	FY25	FY24	Particulars	FY26	FY25	FY24
Equity	81,083.06	73,657.70	66,079.63	Non-Current Assets	55,159.19	54,216.92	50,263.00
(a) Equity Share Capital	6,858.46	6,844.89	6,804.20	(a) Property, Plant and Equipment	53,328.07	48,267.60	47,499.62
(b) Other Equity	74,224.60	66,812.81	59,275.44	(b) Capital Work in Progress	422.92	4,689.66	1,232.02
Non-Current Liabilities	11,236.85	13,125.16	13,054.84	(c) Right of use asset	59.12	-	-
(a) Financial Liabilities				(d) Other Intangible Assets	69.4	83.41	26.03
(i) Borrowings	3,884.61	7,736.11	10,476.93	(e) Intangible Assets under Development	-	-	48.84
(ii) Lease Liabilities	37.69	-	-	(f) Other Financial Assets	253.28	232.15	437.35
(iii) Other Financial Liabilities	607.02	607.02	372.56	(g) Deferred Tax Assets (Net)	-	-	-
(b) Provisions	502.87	427.97	383.05	(h) Other Non-Current Assets	1,026.40	944.11	1,019.13
(C) Deferred Tax Liabilities (Net)	6,204.66	4,354.06	1,822.30	Current Assets	43,833.21	41,855.35	33,277.28
Current Liabilities	6672.48	9,289.40	4,405.80	(a) Inventories	11,712.76	12,323.91	9,858.42
(a) Financial Liabilities				(b) Financial assets
(i) Borrowings	3,544.95	5,366.91	2,745.90	(i) Trade Receivables	9,733.31	8,671.28	7,915.70
(ii) Lease Liabilities	22.41	-	-	(ii) Cash and Cash Equivalents	5.35	7.58	5.62
(iii) Trade Payables	1,014.22	1,656.21	588.52	(iii) Other Bank Balances	1,772.37	927.85	826.18
(iv)Other Financial Liabilities	461.43	408.6	11.53	(iv) Other Financial Assets	113.37	143.9	110.6
(b) Other Current Liabilities	1,407.45	1,759.88	991.56	(c) Other Current Assets	20,455.33	19,725.91	14,560.76
(c) Provision	222.02	97.8	68.29	(d) Income tax assets (Net)	40.72	54.92	-
TOTAL EQUITY AND LIABILITIES	98,992.39	96,072.27	83,540.28	TOTAL ASSETS	98,992.39	96,072.27	83,540.28

IX. Human Resource:

Human Resources are capital of the Company. It could be invested through education and training which leads to an improvement in the quality and level of production. The Company has always given importance for developing individuals as well as teams. The system followed is transparent and performance based and it endeavors to retain, develop and provide better working environment to the employees by providing an atmosphere of trusteeship, competition and challenge, thereby providing opportunities for personal and professional growth through training and ample career enhancement opportunities. The Company organizes and provides requisite training to its employees from time to time and periodical appraisal and rewarding systems are in put well in place.

As on 31st March, 2026, the number of permanent employed is 568 and there were 1060 employees in contract basis and others.

Bharat wire ropes Limited has shown full commitment towards employees, investors, contractors, consultants and all related personnel by providing safe-working conditions along with other welfare measures.

X. Forward Looking statement

This document contains forward-looking statements relating to the anticipated future performance, financial outcomes, and operational developments of Bharat Wire Ropes Limited. These statements are inherently predictive in nature and involve certain assumptions, estimates, and expectations that are subject to known and unknown risks, uncertainties, and other factors beyond the Companys control. As such, actual results or developments may differ materially from those expressed or implied in these statements.

Readers are advised not to place undue reliance on forward-looking statements. Several factors including economic conditions, regulatory changes, market dynamics, and internal performance could cause actual outcomes to vary significantly from those projected.

These forward-looking statements are qualified in their entirety by the assumptions, disclaimers, and risk factors detailed in the Managements Discussion and Analysis section of Bharat Wire Ropes Limiteds Annual Report for FY 2025 26, which should be read in conjunction with this document.

For Bharat Wire Ropes Limited	For Bharat Wire Ropes Limited
Murarilal Mittal	Mayank Mittal
Managing Director	Joint Managing Director
DIN: 00010689	DIN: 00127248
Date:07th August, 2026
Place: Mumbai