Calcom Vision Ltd Management Discussions

Economy Overview

Global Economy

The global economy remained resilient during CY 2025 despite geopolitical uncertainties, evolving trade policies and escalating Middle East conflicts. According to the International Monetary Fund (IMF), global GDP augmented by 3.5%, while headline inflation moderated to 4.1%, supported by easing supply chain disruptions and steady domestic demand. Economic activity was driven by sustained investments in Artificial Intelligence (AI), digital infrastructure and technology, alongside resilient consumer expenditure across major economies. Advanced economies expanded by 1.9%, while Emerging Markets and Developing Economies (EMDEs) registered a 4.5%growth, driven by robust domestic demand and public investments.

Amid persisting geopolitical volatilities and heightened energy prices, enhanced consumer confidence and greater investments in infrastructure and technology propelled consistent economic activity. Long-term progress will be driven by strategic investments in urban infrastructure, tourism, leisure and consumer-oriented industries.

Outlook

Global GDP growth is expected to moderate to 3.0% in CY 2026 before improving to 3.4% in CY 2027. Despite near-term headwinds including geopolitical uncertainties and inflationary pressures, consistent investments in technology, infrastructure and consumer-driven sectors are expected to promote long-term economic growth.

Indian Economy

As one of the worlds fastest-growing major economies, Indias real GDP growth was estimated at 7.7% in FY 2025–26, as compared with 7.1% in the previous year. Progress was backed by resilient domestic demand, optimised agricultural productivity, robust service sector performance and sustained public infrastructure investments.

Private consumption remained a key growth driver, reinforced by favourable rural demand, elevated disposable incomes and moderating inflation. Consumer Price Index (CPI) inflation eased to 3.93% in May 2026 (revised 2024 base year), thereby enabling sustained household expenditure across urban and rural markets.

Source – IMF World Economic Outlook, July 2026 Government initiatives catalysed sustained expansion. The Union Budget 2026 27 allocated 12.2 lakh crore towards capital expenditure while promoting the development of MSMEs and digital infrastructure through streamlined business operations. Additionally, increasing internet penetration, rapid digital payment adoption and expanding urbanisation promoted organised consumption while enhancing access to leisure, entertainment and lifestyle services, primarily across Tier II and Tier III cities.

Indias economic resilience was further reinforced by stable foreign exchange reserves and disciplined fiscal management. Despite global uncertainties, surging domestic demand and favourable demographics continue to drive sustained expansion.

Outlook

Indias economic outlook remains favourable. In FY 2026-27, real GDP is projected to reach 6.6%. Consistent government infrastructure investments, escalating private consumption, rapid urbanisation and sustained digital adoption are expected to propel long-term progress. These structural trends are expected to accelerate demand for organised recreational infrastructure, tourism and consumer experiences, thereby ensuring a conducive business environment.

Industry Overview

Indian Consumer Electronics Market

Indias consumer electronics market continued to witness steady expansion during the year, supported by rising disposable incomes, urbanisation, increasing digital adoption and growing consumer preference for smart and connected products. The Indian consumer electronics market was valued at US$89.48 billion in 2025 and is projected to reach US$158.44 billion by 2034, registering a CAGR of 6.56% during 2026–34. Smart products accounted for 58.9% of the market in 2025, reflecting the increasing penetration of connected televisions, smart appliances, wearables and other technology-enabled products. The market is also benefiting from wider internet and smartphone penetration, an expanding middle-class consumer base and increasing availability of products through organised retail and e-commerce channels.

The industry is undergoing a structural shift towards smart, energy-efficient and technologically advanced electronics, with consumers increasingly seeking convenience, connectivity and enhanced functionality. B2C channels accounted for 78.6% of the market in 2025, supported by the rapid expansion of e-commerce and modern retail. At the manufacturing level, increasing localisation, government incentives and the development of domestic electronics supply chains are encouraging manufacturers to expand capabilities across product development, components, sub-assemblies and electronics manufacturing services. This transition is creating opportunities for domestic manufacturers to strengthen their design and manufacturing capabilities and participate in the growing value chain for electronics and allied products. The Indias consumer electronics industry remains favourable, supported by continued digitalisation, rising consumer aspirations, increasing adoption of smart and connected products and growing demand for energy-efficient solutions. Premiumisation and technological advancements are expected to encourage replacement demand and expand the addressable market across consumer and professional applications. The continued development of domestic electronics manufacturing and deeper localisation of the supply chain should further support opportunities for ODM and EMS players. For Calcom, the evolving demand environment provides opportunities to leverage its manufacturing and product-development capabilities across LED lighting, outdoor and professional lighting, industrial applications, solar lighting and other emerging electronics solutions, while expanding its presence in higher-value and technology-enabled product categories.

Electronic manufacturing exports

Indias electronics manufacturing sector has strengthened its position as a key export-oriented industry, supported by rising domestic production capabilities, increasing localisation and the integration of Indian manufacturers into global value chains. The expansion of manufacturing capacity, development of a domestic component ecosystem and policy support through initiatives such as the Production Linked Incentive (PLI) schemes and the Electronics Components Manufacturing Scheme (ECMS) are enabling greater scale and competitiveness across the sector. For manufacturers operating across electronics, lighting and allied products, this evolving ecosystem provides opportunities to expand export-oriented production, deepen product capabilities, improve supply-chain integration and address growing demand from global customers, while leveraging Indias increasing role as an alternative manufacturing base

Indias lighting market

The Indian LED lighting industry is witnessing rapid expansion, supported by increasing energy-efficiency awareness, urbanisation, rising disposable incomes and the growing adoption of technologically advanced lighting solutions across residential, commercial, industrial and outdoor applications. The shift from conventional lighting towards LED products continues to gain momentum, driven by their lower energy consumption, longer operating life, reduced maintenance requirements and improving product affordability. Increasing consumer preference for sustainable and aesthetically enhanced lighting is also encouraging the adoption of a wider range of LED products, including smart and connected lighting solutions. The Indian LED lighting market was valued at USD 6.00 billion in 2025, highlighting the significant scale and growing importance of the segment. The Indian LED lighting market is projected to reach USD 27.81 billion by 2034, registering a CAGR of 18.58% during 2026–2034. Growth is expected to be supported by increasing demand for sustainable and technologically advanced lighting solutions, wider adoption of smart and connected lighting, continued replacement of conventional lighting systems and growing applications across residential, commercial and industrial spaces. This evolving demand environment is expected to create opportunities for manufacturers with capabilities in product innovation, efficient manufacturing and differentiated LED lighting solutions.

Government Initiatives

Initiatives	Description
Production Linked Incentive (PLI) Schemes	The PLI schemes for large-scale electronics manufacturing and IT hardware are supporting capacity expansion and strengthening Indias electronics manufacturing ecosystem. The scheme is relevant to manufacturers operating across electronic products, LED lighting and related components, providing an enabling environment for scale-up and greater integration into domestic and global supply chains.
Electronics Components Manufacturing Scheme (ECMS)	The ECMS, with an enhanced outlay of 40,000 crore, focuses on developing domestic capabilities in sub-assemblies, multi-layer PCBs, passive components and capital equipment. The initiative is expected to improve component availability and localisation, supporting manufacturers in reducing supply-chain dependence and enhancing domestic value addition.
Modified Electronics Manufacturing Clusters (EMC 2.0)	EMC 2.0 promotes the development of electronics manufacturing clusters with plug-and-play infrastructure, common testing facilities and ready-built manufacturing facilities. This can support companies engaged in electronics and LED manufacturing by improving manufacturing infrastructure, reducing setup timelines and enabling operational scale-up.
Smart & Energy- Efficient Lighting Adoption	Rising adoption of LED, smart and energy-efficient lighting solutions is expanding the addressable market for manufacturers. Increasing demand for connected lighting, commercial and industrial applications and replacement of conventional lighting systems provides opportunities to expand product offerings and strengthen presence across the LED lighting value chain.

Opportunities and Threats

Opportunities

Rising domestic demand for consumer electronics, LED lighting and other electronic products.

Strong China+1 opportunity as global OEMs diversify their manufacturing base.

Expansion of Indias EMS market driven by domestic demand, exports and increasing OEM outsourcing.

Government initiatives such as PLI, SPECS, Semiconductor India and EMC 2.0 supporting electronics manufacturing and localisation.

Growing electronics content in automotive, EV, telecom and industrial automation.

Opportunitytomovetowardshigher-valuemanufacturing, system integration and design-led solutions, improving value addition and customer stickiness.

Threats

High dependence on imported semiconductors, ICs, displays and other critical electronic components.

Intense competition from established manufacturing hubs, particularly China, Vietnam, Malaysia and Thailand.

Pricing pressure and relatively low margins in commoditised electronics assembly.

Volatility in component prices, foreign exchange rates and global supply chains.

Shortage of skilled manpower and specialised technical capabilities.

Rapid technological changes requiring continuous investment in manufacturing technology, product development and quality capabilities.

Company Overview

Calcom Vision Limited has evolved over five decades from a consumer electronics manufacturer into an integrated Original Design Manufacturer (ODM) and Electronics Manufacturing Services (EMS) platform. The Company began with calculator manufacturing for export markets and subsequently expanded into television manufacturing under the OEM model, supplying leading brands. Over the years, it has transitioned towards LED lighting, smart energy-efficient solutions and electronics manufacturing, supported by strong manufacturing expertise, design capabilities and an integrated production ecosystem. Today, the Company offers end-to-end capabilities spanning product design, tooling, moulding, SMT, assembly, testing and validation, enabling greater control over quality, cost and execution. Its manufacturing capabilities, experienced management team and skilled workforce support its focus on operational efficiency, reliability and cost competitiveness, while its portfolio continues to expand across outdoor, industrial, solar and smart lighting, as well as EMS and emerging electronics applications. The Company is also strengthening its export readiness to serve customers across domestic and international markets.

Operational highlights

During the year, the Company strengthened its operating scale and manufacturing capabilities, supported by sustained growth in business volumes. Annual revenue increased

38.71% to 218.45 crore, the highest annual sales achieved by the Company, while all four quarters recorded their highest sales levels, with Q4 revenue reaching 68.17 crore. EBITDA also increased 35.56% to 16.02 crore, reflecting improved operating performance alongside the expansion in scale. TheCompanycontinuedtodeepenitsintegratedmanufacturing ecosystem and backward integration during the year. Key additions included an in-house plastic extrusion plant with 12 extruders, aluminium pressure die-casting facilities with 180T and 400T machines, an automatic and semi-automatic drilling and tapping centre, an in-house powder-coating plant and battery-pack manufacturing and testing capabilities. These investments are aimed at improving production efficiency, strengthening process integration and supporting the Companys expanding product portfolio.

Financial highlights

	Standalone		Consolidated
Particulars	FY 2025-26	FY 2024-25	FY 2025-26	FY 2024-25
Revenue From Operations	21,844.65	15,726.32	21,831.25	15,726.32
Other Income	252.96	195.54	253.97	195.54
Total Income	22,097.61	15,921.86	22,085.22	15,921.86
Finance costs	696.64	580.54	696.81	580.54
Depreciation And Amortisation Expense	557.91	395.77	557.95	395.77

 

	Standalone		Consolidated
Particulars	FY 2025-26	FY 2024-25	FY 2025-26	FY 2024-25
Other Expenses	915.44	600.25	932.78	602.21
Profit Before Tax	346.56	205.03	274.06	203.07
Profit after tax	245.51	144.90	141.06	111.53
EPS (Diluted)	1.73	1.04	1.11	0.80

Key Financial Ratio

Ratios	FY 2025-26	FY 2024-25	YOY Change (%)	Variance
Current Ratio	1.13	1.27	(11.2)
Debt-Equity Ratio	1.06	1.11	(4.1)
Trade Receivables Turnover Ratio	0.17	0.28	(39.2)	Reduction in Trade Receivable
Debt service coverage Ratio	1.5	1.56	(3.8)
Inventory Turnover Ratio	0.34	0.32	7.4
Return on Capital Employed	0.12	0.12	2.9

Company Outlook

The Company remains focused on building a more diversified and scalable manufacturing platform, with continued emphasis on outdoor, industrial, solar and smart lighting solutions. Expansion into EMS and emerging electronics applications such as EV chargers and IoT-enabled solutions is expected to create additional growth opportunities. The Company will continue to strengthen automation, backward integration and manufacturing capabilities to improve efficiency, responsiveness and scalability. Greater focus on exports and international markets, supported by dedicated export capabilities and global quality standards, is expected to broaden the addressable market. With increasing localisation, energy-efficiency and technology-led demand, the Company is positioned to pursue sustainable growth through product diversification, operational excellence and stronger manufacturing capabilities.

Risk and mitigation strategies

Risk	Description of Risk	Mitigation Strategy
Technology Shift	The lighting industry is transitioning from Driver Type to DOB Type products, resulting in significant price pressure, with LED bulb prices declining by up to 60% and batten prices by around 40%.	The Company is automating the manufacturing of low-wattage bulbs to improve cost efficiency and productivity. It is also expanding into higher- margin products such as streetlights and well- glass lighting to strengthen profitability.
Production Expansion	Rising demand requires the Company to scale production capacity and infrastructure, creating execution risks related to capacity planning, timely implementation, capital expenditure and integration of new facilities.	The Company is expanding its manufacturing footprint and installing new equipment, including a plastic extrusion plant. It is also strengthening SMT lines, tool rooms and assembly capacity to support higher production volumes.
Market Pressure	The indoor lighting segment is experiencing pricing pressure due to its increasingly commoditised nature, which could constrain margins and intensify competition.	The Company is broadening its portfolio towards outdoor and professional lighting products, which offer better margin potential and relatively lower competitive intensity, thereby reducing dependence on commoditised indoor lighting.

Human Resources

Calcom Vision Limited continues to strengthen its people capabilities in line with the expansion of its manufacturing footprint and entry into new product verticals. With a new Chief Executive Officer taking charge from April 1, 2025, the Company is further sharpening its leadership focus while strengthening workforce capabilities through targeted upskilling, cross-functional training and strategic talent acquisition across emerging business areas, including EMS and solar lighting.

The Company is also leveraging automation to improve manpower deployment and operational efficiency while creating opportunities for skilled roles across quality, R&D and product engineering. Alongside capability development, the Company remains focused on fostering an inclusive and diverse workplace, supporting collaboration and a high-performance culture as it scales its operations.

Total Number of Employees as on March, 2026

Internal control systems and their adequacy

The Company has a strong internal control system suited to the size of its operations. It follows local laws to ensure smooth business operations, protect its assets and prevent fraud or mistakes. This system also makes sure that accounting records are complete and financial reports are prepared on time. The Company checks the effectiveness of these controls through regular self-audits and reviews by internal and external auditors.

Cautionary statement

The Management Discussion and Analysis (MDA) section often includes statements about future prospects. These statements, which address both known and unknown risks and uncertainties, can lead to significant differences between actual outcomes and the predictions made. The reports estimates rely on the Companys assumptions, which consider the most recent internal and external data. While these assumptions reflect present circumstances, they remain subject to change as underlying factors evolve. Its essential to recognise that forward-looking statements apply only to the date they are made and reflect the Companys current intentions, beliefs, or assumptions. The Company is not obligated to revise or update these statements based on new information or future events.