1. Industry Structure and Developments
During FY 2025-26, the Indian power and electrical infrastructure industry continued to witness significant growth, supported by increasing electricity demand, expansion and modernization of transmission and distribution infrastructure, integration of renewable energy into the grid and continued investments in substations and associated electrical infrastructure.
The Government of India continued to focus on strengthening the transmission network to facilitate the integration of renewable energy capacity. Under the Green Energy Corridor programme, substantial investments are being made in transmission lines and substations, including in Gujarat. The Intra-State Green Energy Corridor Phase-II scheme envisages approximately 10,750 ckm of transmission lines and 27,500 MVA of substations to facilitate integration of around 20 GW of renewable energy capacity.
The renewable energy sector remained one of the major drivers of growth for the electrical infrastructure industry during the year. India added substantial renewable energy capacity during 2025, with solar power continuing to account for a significant proportion of new capacity additions. The increasing deployment of solar and other renewable energy projects is creating corresponding demand for substations, transmission systems, grid evacuation infrastructure, testing, commissioning and operation and maintenance services.
In this environment, the industry presents opportunities for companies having technical expertise in substation operation and maintenance, testing and commissioning, EHV electrical works and solar EPC activities. The increasing focus on grid modernization, renewable energy integration and development of transmission infrastructure is expected to provide sustained opportunities for specialized electrical infrastructure service providers.
Going forward, the Companys industry is expected to benefit from continued investments in power transmission and distribution, renewable energy evacuation, substation infrastructure, grid strengthening and solar power projects. At the same time, the industry remains competitive and is subject to factors such as project execution timelines, availability and cost of equipment, raw-material prices, skilled manpower, regulatory requirements and competitive pricing.
Overall, the industry outlook remains positive, supported by Indias increasing power requirements, renewable energy expansion and the Governments continued emphasis on strengthening and modernising the countrys electricity transmission and distribution infrastructure.
Opportunities
The growing focus on renewable energy, especially solar power, offers significant growth opportunities. Our Companys expertise in setting-up and managing of solar parks positions it well to capture a share of this expanding market.
Indian government policies promoting infrastructure development and renewable energy create new project opportunities. We can benefit from these initiatives, particularly in rural and underserved areas.
Partnering with other companies can enable our Company to bid for larger projects and access new markets. These collaborations can also bring in additional expertise and resources, supporting growth and innovation.
Establishing a NABL-certified lab will diversify our Companys offerings and boost its reputation for quality, attracting higher-margin contracts and enhancing credibility in the industry.
Regulatory ChangesShifts in government regulations or policies, especially related to renewable energy and infrastructure, could impact project approvals, compliance costs, and overall business operations.
Intense competitionThe power and renewable energy markets are highly competitive, with numerous players vying for contracts. This competition can lead to pricing pressures, reduced profit margins, and the need for continuous innovation.
Economic DownturnsEconomic slowdowns or recessions can lead to reduced infrastructure spending, project delays, or cancellations, impacting the companys revenue and growth prospects.
Technological DownturnsRapid technological advancements require constant investment to stay competitive. Failure to adopt or integrate new technologies could diminish the companys market position and operational efficiency.
Supply-chain DisruptionsInterruptions in the supply chain, whether due to logistical issues, material shortages, or geopolitical factors, can affect project timelines, increase costs, and impact overall project execution.
Skilled-labour shortageA shortage of skilled labour can hinder the companys ability to execute projects effectively and on time. Attracting and retaining qualified professionals is crucial to maintaining project quality and meeting deadlines.
The turnover/performance of the Company has been disclosed in the Directors report under the Head Review of Operations, sales and working results.
Key risks faced by the Company include:
A substantial portion of Chamundas revenue comes from operation, maintenance, testing, and commissioning (OMTC) of electrical substations. Any project delays, rising material costs, or execution problems could significantly dent its revenue and cash flow
All of the companys revenue is generated from just its top ten customers. Should it lose one major client, the impact on revenue and profitability could be substantial- even though such a disruption hasnt occurred in recent years.
Geographic Concentration in Gujarat
Chamunda conducts most of its operations in Gujarat in recent years. Any economic downturn, policy shift, or regional regulatory changes in Gujarat could severely impact the business.
A significant portion of Chamundas business is tied to state electricity boards (like GETCO) and government tenders. The companys growth and stability hinge on maintaining favorable relations, timely payments, and continued access to such contracts.
The Company has a sound internal control system commensurate with its size and nature of operations. It includes policies and procedures to ensure:
Efficient use and protection of resources. Accuracy and completeness of accounting records. Compliance with applicable laws and regulations.
Periodic internal audits are conducted and findings reported to the Audit Committee and Board for necessary action. No significant internal control weaknesses were observed during the year.
| 7. Financial Performance with Respect to Operational Performance PARTICULARS | Standalone 31.03.2026 | Standalone 31.03.2025 |
| X. Net Sales/Income from Operations | 3204.01 | 2528.57 |
| XI. Other Income | 41.53 | 16.30 |
| XII. Total Revenue (I+II) | 3245.54 | 2544.87 |
| XIII. Earnings Before Interest, Taxes, Depreciation and Amortization Expense | 524.03 | 644.25 |
| XIV. Finance Cost | 6.10 | 42.06 |
| XV. Depreciation and Amortization Expense | 95.89 | 91.93 |
| XVI. Prior Period Items | 60.72 | |
| XVII. Profit Before Tax (IV-V-VI) | 422.04 | 449.54 |
| XVIII. Tax Expense: | ||
| Less: Current Tax Expense | 106.45 | 144.26 |
| Less: Deferred Tax and Excess Income tax Provision earlier year | (36.11) | (30.35) |
| Profit After Tax (VII-VIII) | 351.70 | 335.63 |
The Company continues to give utmost importance to Human Resources Development and keeps relations normal. As on 31st March, 2026, there are 962 employees.
Industrial relations continue to be harmonious and normal.
| 9. Details of Significant Changes in Key Financial Ratios Ratios | For the Year ended March 31, 2026 | For the Year ended March 31, 2025 | Variation (%) |
| (a) Current Ratio | 2.64 | 3.48 | (24.14%) |
| (b) Debt-Equity Ratio | 0.10 | - | No debts as on march 2025 |
| (c) Debt Service Coverage Ratio | NA | NA | (100.00%) |
| (d) Return on Equity Ratio | 13.10% | 21.36% | (38.67%) |
| (e) Inventory turnover ratio | N/A | N/A | |
| (f) Trade Receivables turnover ratio | 5.17 | 6.09 | (15.11%) |
| (g) Trade payables turnover ratio | 314.74 | 415.54 | (24.26%) |
| (h) Net capital turnover ratio | 3.60 | 5.60 | (35.71%) |
| (i) Net profit ratio | 10.98% | 13.27% | (17.26%) |
| (j) Return on Capital employed | 15.95% | 23.38% | (31.78%) |
| (k) Return on investment | N/A | N/A |
10. Cautionary Statement
Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations, or predictions may be 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, political, and regulatory environments, natural calamities, and market conditions.
| Ratio | Variation | Point-wise reason for variation |
| (a) Current Ratio | (24.14%) | The Current Ratio decreased from 3.48 to 2.64 mainly due to changes in current assets and current liabilities during the year. The decrease indicates relatively higher utilisation of current assets towards business operations and/or an increase in short-term obligations. |
| (b) Debt-Equity Ratio | N.A. | The Debt-Equity Ratio increased to 0.10 from nil mainly on account of borrowings/debt availed by the Company during FY 2025-26. As there were no debts as on March 31, 2025, the ratio was not applicable/was nil in the previous year. |
| (c) Debt Service Coverage Ratio | N.A. | The ratio is not applicable as the Company did not have significant debt servicing obligations requiring computation of the ratio during the relevant period. Accordingly, the ratio has been disclosed as N.A. |
| (d) Return on Equity Ratio | (38.67%) | The decrease from 21.36% to 13.10% is primarily attributable to a lower level of profitability relative to the shareholders equity during FY 2025-26. The increase in the equity base and/or reduction in profit has resulted in a lower return generated on shareholders funds. |
| (e) Inventory Turnover Ratio | N.A. | The ratio is not applicable as the Company does not maintain inventory as part of its principal business operations. |
| (f) Trade Receivables Turnover Ratio | (15.11%) | The ratio decreased from 6.09 to 5.17 mainly due to an increase in average trade receivables in relation to revenue. The variation reflects a comparatively higher level of outstanding receivables during the year. |
| (g) Trade Payables Turnover Ratio | (24.26%) | The decrease from 415.54 to 314.74 is mainly due to changes in trade payables and purchases/operating expenses during the year. The lower ratio indicates relatively higher average trade payables during FY 2025-26. |
| (h) Net Capital Turnover Ratio | (35.71%) | The ratio decreased from 5.60 to 3.60 primarily due to an increase in net working capital relative to revenue. The higher working capital employed during the year resulted in lower utilisation of net capital in generating revenue. |
| (i) Net Profit Ratio | (17.26%) | The decrease from 13.27% to 10.98% is mainly attributable to a reduction in the net profit margin during FY 2025-26 due to changes in operating costs, finance costs and other expenses in relation to revenue. |
| (j) Return on Capital Employed | (31.78%) | The decrease from 23.38% to 15.95% is primarily attributable to lower operating profitability relative to the capital employed. The increase in capital employed and/or reduction in operating profit has resulted in a lower return generated on the capital employed. |
| (k) Return on Investment | N.A. | The ratio is not applicable as the Company does not have material investments for which a meaningful Return on Investment ratio is required to be computed. |
10. Cautionary Statement
Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations, or predictions may be 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, political, and regulatory environments, natural calamities, and market conditions.
For and on behalf of Board of Directors Chamunda Electrical Limited
Date: 26th August, 2026 Place: Palanpur
Mr. Chiragkumar N. Patel Managing Director DIN: 06601915
Mr. Natvarbhai K. Rathod Whole-time Director DIN: 06601995
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