Bonlon Industries Ltd Management Discussions

This Management Discussion and Analysis Report for the financial year ended 31st

March 2026.

1. INDUSTRY STRUCTURE AND DEVELOPMENTS

Bonlon Industries Limited operates across metal trading and manufacturing, dealing in

ferrous and non-ferrous metals — copper, aluminium, zinc, lead and nickel — and

manufacturing Plastic Insulated Power Cables. The Companys shares were initially

listed on BSE Limited and further listed on on the National Stock Exchange of India

Limited with effect from 20th February, 2026 with a view to broadening the Companys

investor base and market visibility.

The Indian wires and cables industry continued its growth trajectory during F.Y. 202526, supported by sustained investment in power transmission and distribution infrastructure, rural electrification programmes, expanding renewable energy capacity, and the ongoing build-out of telecom and data-centre infrastructure. Industry estimates

place the Indian wires and cables market in the range of ?1.8-1.9 lakh crores for the year,

with mid-to-high single digit compound annual growth expected over the medium term,

aided by government infrastructure spending and increasing demand for BIS-certified,

quality-assured cable products. The non-ferrous metals segment — copper, aluminium

and other base metals traded by the Company — saw a period of strong price

momentum through calendar year 2025 into early 2026, with global copper and

aluminium prices rising sharply on the back of tightening supply, robust industrial

demand and the continuing global energy-transition-driven demand for these metals in

power, EV and renewable energy applications. This price environment presented both

opportunities (higher trading margins on inventory appreciation) and risks (working

capital intensity, margin volatility) for metal trading businesses such as the Companys.

2. OPPORTUNITIES AND THREATS

Opportunities

• Increasing demand for power cables driven by infrastructure and electrification projects in India.

• Access to a wider investor and capital base following the Companys dual listing on BSE and NSE.

• Growth in metal trading volumes, supported by the Companys established relationships in domestic and export markets (notably UAE and Nigeria).

• Additional growth capital raised through the preferential warrant issue during the year, strengthening the Companys balance sheet for expansion.

Threats

• Volatility in prices of key raw materials — copper, aluminium and other nonferrous metals — which are linked to global commodity cycles.

• Foreign exchange fluctuations affecting the Companys import and export transactions.

• Competitive intensity in both the metal trading and cable manufacturing segments.

• Regulatory and compliance costs associated with the Companys transition to mainboard/dual-exchange listed status.

3. SEGMENT-WISE /PRODUCT-WISE PERFORMANCE

The Companys operations are organised into the following segments:

Metal Trading:

The Company trades in copper, aluminium, zinc, lead and nickel, both domestically and

through imports/exports, and also trades on the MCX platform.

Manufacturing:

The Company manufactures Plastic Insulated Power Cables at its two units in Bhiwadi,

Rajasthan, supplying customers in India and exporting to markets including the United

Arab Emirates and Nigeria.

4. OUTLOOK

The Board believes the Company is well-positioned for continued growth, supported by its dual stock exchange listing, the additional growth capital raised through the

preferential warrant issue during the year, and the increase in Authorised Share Capital

approved by the Members. Demand from existing and new customers for the

Companys cable products, together with its established metal trading relationships, is

expected to support the Companys business momentum in the coming year.

5. RISKS AND CONCERNS

• Commodity price risk — fluctuations in the prices of copper, aluminium and other non-ferrous metals.

• Foreign exchange risk on import and export transactions.

• Credit risk on trade receivables. I

• Interest rate risk on borrowings, particularly given the increase in borrowings during the year.

• Regulatory and compliance risk associated with the Companys SEBI-regulated

listed status on two exchanges.

The Companys Risk Management Policy, referred to in the Directors Report, addresses

the identification, assessment and mitigation of these risks.

6. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has in place adequate internal financial controls commensurate with the

size and nature of its business, covering areas such as finance and accounts, taxation,

human resources, legal and statutory compliance, store management and fixed assets, as

also confirmed by the Internal Auditors, M/s Shy am Goel & Associates, Chartered

Accountants, appointed for F.Y. 2025-26. The Audit Committee reviews the internal

audit findings and the adequacy of internal financial controls periodically. The Statutory

Auditors have not reported any material weakness in the Companys internal financial controls for the year.

7. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

Standalone revenue from operations grew by 4.5% year-on-year to ?65,118.48 Lakhs (F.Y. 2024-25: ?62,310.18 Lakhs), while standalone Profit After Tax grew by 12.9% to ?303.64

Lakhs (F.Y. 2024-25: ?269.05 Lakhs), reflecting the Companys continued growth in its

metal trading and manufacturing businesses. On a consolidated basis, revenue from operations grew by 4.5% to ?65,118.48 Lakhs and Profit After Tax was ^262.61 Lakhs.

The Companys Reserves and Surplus (Other Equity) grew to ?8,370.90 Lakhs f

(standalone) as at 31st March, 2026, from ?6,748.22 Lakhs in the previous year, aided also f

by the preferential warrant issue during the year. f

8. KEY FINANCIAL RATIOS

Pursuant to Regulation 34(3) read with Schedule V of the Listing Regulations, the following are the significant changes in key financial ratios of the Company for F.Y. 2025-26 as compared to F.Y. 2024-25, together with the underlying ratios:

Standalone Basis

Consolidated Basis

9. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS

The Company continued to maintain cordial relations with its employees during the year. Your Directors place on record their appreciation for the contribution of employees at all levels.

10. CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates and expectations may be forward-looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied, depending on economic conditions, government policies, and other incidental factors. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events.