Cords Cable Industries Ltd Management Discussions

Global Economy

Global economic growth is facing notable headwinds amid rising trade barriers, geopolitical tensions, and persistent policy uncertainties. The World Bank sGlobal Economic Prospects(June 2025) forecasts global growth to slow further to approximately2.3% in 2025, marking the slowest pace since the global financial crisis in 2008, aside from outright recessions. Growth deceleration is expected across both advanced economies and emerging market and developing economies (EMDEs), with a modest recovery targeted for 2026-27.

Inflation, although lower than in the prior years, is projected to decline at a slower-than-anticipated rate, underpinning continued monetary policy adjustments worldwide. The escalation in tariff rates, nearing levels unprecedented in the past century, and trade tensions, especially among major economies, remain significant downside risks that could weigh on investment and global trade.

Climate change impacts, ongoing conflicts, and financial stresses in vulnerable EMDEs also contribute to the uncertain outlook. Conversely, coordinated multilateral efforts in trade policy and sustainable development, alongside fiscal consolidation and labor market reforms, could help re-energize growth and reduce policy uncertainties.

Sources:

World Bank, Global Economic Prospects, June 2025

International Monetary Fund (IMF), World Economic Outlook, April 2025

Indian Economy

Despite the challenging global environment, India continues to maintain its position as the fastest-growing major economy, with projected GDP growth of6.2%for FY2025 and6.3%for FY2026. This robust growth is underpinned by strong domestic consumption, significant infrastructure investments, and policy initiatives such as Make in India and the Production Linked Incentive (PLI) scheme that are enhancing manufacturing competitiveness.

Inflation has moderated gradually, fiscal deficits have narrowed due to increased tax revenues, and export growth remains positive year-on-year, reflecting a solid macroeconomic framework. Initiatives like the National Single Window System and BharatTradeNet are streamlining business procedures, while increased capital expenditure for FY2026, estimated at INR 11.2 trillion (USD 134.5 billion), signals government commitment to infrastructure development.

India s dynamic startup ecosystem and status as a leading destination for technology investments reinforce its long-term growth potential. Amid evolving global capital flow patterns, ongoing reforms to improve ease of doing business and attract foreign direct investment are critical for sustaining momentum.

Source:

KPMG India, Decoding the Indian Economy, May 2025

INDUSTRY STRUCTURE AND DEVELOPMENT (Wires and Cables Industry)

The Indian wires and cables market is witnessing robust growth, driven by accelerating infrastructure development, expanding renewable energy adoption, and technological advancements. The market size is estimated atUSD 21.22 billion in 2025and is projected to reachUSD 32.85 billion by 2030, exhibiting a Compound Annual Growth Rate (CAGR) of approximately9.13%during 2025-2030 (Technavio, 2025).

This growth momentum is primarily fuelled by the increasing deployment of renewable energy sources such as solar and wind, alongside the rising demand for High Voltage Direct Current (HVDC) power cables essential for efficient long-distance power transmission. The Government of India s ambitious target of achieving500 GW of non-fossil fuel installed capacity by 2030is catalysing large-scale infrastructure projects that demand sophisticated wires and cables solutions.

The adoption of HVDC cables is pivotal in enhancing grid reliability and minimizing transmission losses, reinforcing this segment as a key market driver. However, the industry also faces challenges including stringent regulatory requirements such as mandatory BIS certifications that increase operational costs and affect market entry. Additionally, supply chain vulnerabilities, mainly dependence on imported raw materials like copper and aluminium, create cost pressures and may inhibit optimal growth.

Housing demand, rapid upgrades in the telecom sector, and utility projects linked to government initiatives continue to drive large-volume cable orders. The rapid expansion of 5G networks is increasing demand for fibre optic cables, while data centre growth supports additional opportunities in low-loss optical fibre cables.

The railway industry segment is poised for significant expansion amid India s ongoing railway modernization and electrification drives. The flagshipMission 100% Electrification, aimed at converting the entire rail network from diesel to electric traction, mandates the installation of vast quantities of power, medium voltage, and control cables that adhere to strict performance criteria such as high energy efficiency, temperature tolerance, and corrosion resistance.

Beyond power and railways, the building construction sector and industrial automation are key consumers of low voltage and shielded cables, driven by rising safety and operational efficiency standards. Robust cable manufacturing and testing infrastructure remain critical to ensure product quality and longevity, underpinned by strict adherence to cable certification and standards ensuring safety and reliability.

The market s reliance on copper and aluminium as core raw materials remains significant due to their superior electrical conductivity and mechanical strength. Growing awareness of sustainability and environmental concerns is creating emerging opportunities in cable maintenance, recycling, and lifecycle management, enhancing the sector s green credentials.

Overall, the Indian wires and cables industry is uniquely positioned for sustained growth, bolstered by government infrastructure initiatives, renewable energy expansion, and technological modernization, balanced against the need to navigate supply chain complexities and regulatory compliance.

Sources:

? Technavio,Electric Wire and Cable Market in India -Industry Analysis, 2025

? Mordor Intelligence,India Wire and Cable Market Report, 2025

OPPORTUNITIES

Demand Drivers, and Opportunities in the Wire and Cable Industry

The Indian wires and cables industry is undergoing rapid expansion, bolstered by the Government of India s unwavering commitment to infrastructure development and steadily increasing investments across diverse sectors. This growth is supported by a dynamic mix of factors: heightened government spending on infrastructure, aggressive promotion of renewable energy, accelerating urbanization and industrialization, rapid adoption of emerging technologies, and the government s strategic focus on strengthening domestic manufacturing capabilities.

Few of the Sectoral Opportunities:

Hydrocarbons: The oil and gas industry requires highly specialized cables that can operate reliably under extreme temperatures and harsh environments. Growth in exploration, drilling, and refining activities is expected to increase demand for durable, high-performance cables designed specifically for these challenging conditions.

Railways and Metro Rails: The ambitious expansion, electrification, and modernization of India s railway and metro rail networks are creating significant opportunities. The government s push towards high-speed rail corridors and enhanced urban transit systems is leading to large-scale cabling requirements, including power cables, signalling cables, and control cables.

Power: The power sector remains a cornerstone consumer of cables and wires. Initiatives such asPradhan Mantri Sahaj Bijli Har Ghar Yojana(Saubhagya Scheme) aimed at universal electrification, along with ongoingPower for Allprograms, are driving demand for building wires, power cables, and transmission infrastructure components.

Mining & Metals: Expansion in mining and metal processing sectors is translating into higher demand for specialized cables that can endure the industrial environment s rigors while ensuring reliable power and control systems.

Fertilizers and Chemicals: This sector requires cables resistant to corrosive substances and extreme conditions, fuelling demand for specialized insulated cables that maintain safety and operational integrity.

Airports Modernization and Expansion: Government commitment to upgrade existing airports and develop new airports & terminals is creating substantial demand for sophisticated wiring and cabling solutions integral to modern airport infrastructure.

Smart Cities: The Government of India s Smart Cities Mission propels demand for extensive cabling in smart grids, intelligent transportation systems, smart homes, and urban infrastructure networks ushering a new wave of opportunity for cable manufacturers.

Building and Industrial Automation: The rapid growth in automated buildings and industrial processes is driving demand for cables that support controlled environments, data communication, and safety systems under varied operational conditions.

Water and Sewage Treatment Plants (STP): Growing investments in water and sewage treatment infrastructure require specialized cables engineered to campaign against moisture, chemicals, and physical stresses.

Few of the Market Drivers:

Renewable Energy Boost: India s ambitious renewable energy targets aiming for 500 GW of non-fossil capacity by 2030 have accelerated the need for advanced cables capable of supporting solar farms, wind turbines, and HVDC transmissions.

Urbanization and Industrialization: These remain consistent engines of growth with increasing urban infrastructure construction, industrial facility expansions, and telecom network rollouts requiring vast quantities of cables.

Emerging Technologies: Cutting-edge technologies including 5G rollout, Industry 4.0 automation, robotics, cloud computing, and IoT are elevating requirements for secure, efficient, and high-performance cabling solutions.

Government Infrastructure Initiatives and Policy Support: The government s sustained investments in transportation networks, power transmission and distribution systems, real estate, and smart grids are driving strong demand for high-quality wires and cables. Complementing this capital expenditure are focused infrastructure schemes and policy reforms that aim to enhance domestic manufacturing capabilities, improve export competitiveness, and create a favourable ecosystem for the wires and cable industry s long-term growth.

Collectively, these diverse sectoral opportunities and robust market drivers position the Indian wires and cables industry for sustained growth and lucrative prospects in the medium to long term.

Company Overview

Cords Cable Industries Limited (CORDS^?) is a leading manufacturer of Control & Instrumentation cables, with a proven legacy of over three decades in delivering reliable connectivity solutions to mission-critical industries. Recognized for our specialized expertise, we have built a strong presence in the B2B segment by consistently aligning technology, quality, and customer needs.

Our product portfolio spans Instrumentation, Control, Power, Thermocouple Extension/Compensating, and Communication cables engineered to meet the most rigorous international standards including EN, BS, IEC, and VDE. These products support vital sectors such as oil & gas, hydrocarbons, power, airports, railways, metro systems, and emerging infrastructure like smart cities, among others.

What sets CORDS^? apart is our ability to deliver customized, high-quality, and cost-effective solutions designed around customer specifications. This flexibility, combined with deep technical know-how, has positioned us as a preferred partner for projects where reliability is non-negotiable.

Our manufacturing backbone comprises two advanced facilities in Rajasthan: the Kaharani unit with an annual capacity of ~35,000 core-cable-kilometres, and the Chopanki unit with ~30,000 core-cable-kilometres, together enabling production of ~65,000 core-cable-kilometres annually. These facilities are equipped with modern technology and supported by stringent quality processes to ensure consistency and excellence.

Looking ahead, CORDS^? is focused on scalable, yet sustainable growth and operational efficiency through disciplined cost management, proactive maintenance practices, and strategic optimization of the product mix.

Our continued investments in infrastructure, processes, and people reinforce our ability to serve evolving industry needs while enhancing shareholder value.

At CORDS^?, we stand for innovation, quality, and trust. Our enduring focus on customer partnerships and adaptability ensures we remain a reliable contributor to India s infrastructure growth and a recognized name in global connectivity solutions.

RISKS, THREATS, AND CONCERNS

Finance Cost Risk: Finance cost risk arises from the possibilityof incurring highinterest expenseson term loansand other borrowings, includingnon-fund-based facilities availed from banksand financialinstitutions. The Companyactively monitorsinterest ratesoffered by variouslenders and evaluatesopportunitiesto refinanceor swap existingloans with thosecarrying lowerrates to optimizefinance costsand reduce interestburden.

Liquidity Risk: Liquidity risk refers to the possibility that the Company may be unable to meet its short-term financial obligations timely, often due to difficulties in converting assets into cash without loss. The Company mitigates this risk through prudent cash management, ensuring adequate funds and undrawn credit lines are maintained to meet commitments on or before their due dates.

Raw Material Availability and Price Fluctuations:

Dependence on key raw materials like copper, aluminum, steel, and PVC exposes the Company to supply constraints, price swings, and disruptions from geopolitical or unforeseen events, potentially impacting margins and delivery schedules. These risks are mitigated through supplier diversification, long-term MOUs, price-escalation clauses, commodity hedging, and resilient inventory and contingency planning.

Foreign Exchange Risk: The Company s import of raw materials and export of finished goods expose it to fluctuations in foreign currency exchange rates. Sudden adverse movements can affect margins and cash flow. The Company actively manages this risk by undertaking forward contracts and other financial instruments to hedge against currency volatility when deemed appropriate.

Tariff and Trade Policy Risks: Rising protectionism and tariffs increase volatility in raw material costs, supply chains, and export competitiveness. The Company mitigates these risks through active policy monitoring, prudent procurement, and market diversification.

Cybersecurity Threats Risks: Cybersecurity threats include risks of cyberattacks and data breaches. To mitigate this risk, the company implements robust cybersecurity measures, employee training, and data protection protocols.

Human Resource Risk: In the absence of quality human resources, the company may not be able to execute its growth plans. To mitigate this risk, the company places due importance to its human capital assets and invests in building and nurturing a strong talented pool to gain strategic edge and achieve operational excellence in all its goals.

Regulatory and Compliance Risk: Changes in regulatory requirements related to environmental standards, safety, product certifications, and industry-specific laws may expose the Company to compliance challenges and additional costs. Proactive monitoring and timely compliance efforts ensure alignment with statutory obligations, mitigating associated risks.

FINANCIAL & OPERATIONAL PERFORMANCE

During the year under review, Net Sales from Operations stood at 79,456.29 Lacs, as against 62,774.49 Lacs in FY 24. The Operational Profit, before making provision for Interest, Depreciation and Amortization, stood at 4,942.57 Lacs for FY 25 as against 4,130.94 Lacs in FY 24. Thereby, the total comprehensive income comprising profit / loss and other comprehensive income for the period is 1,453.92 lacs as against a PAT of 1,003.43 lacs earned in the previous year.

The primary source of revenue for your company stems from the manufacturing and sale of high-quality customized cables conforming to both Indian and international specifications. This encompassing range includes Control, Instrumentation, Power Cables (up to 3.3 kV), and custom-designed cables. The Company has adeptly addressed the distinct needs of diverse industries, including Power, Oil and Gas, Refineries, Steel, Chemicals, Cement, Water Desalination, Metro Rail, Airports, Renewable Energy and various other sectors.

During the financial year, your company obtained approvals from prestigious domestic and global customers in sectors such as renewable energy, solar power, green hydrogen, hydrocarbon, water, and other infrastructure projects. Additionally, CORDS^? has successfully exported cables to customers in the Middle East, Australia, Europe, Italy and Africa and executed large volume orders for overseas refineries and petrochemical projects.

Further, with the grant of BIS licence for 1.9/3.3 kV Power Cables and NABL accreditation for its test laboratory, the Company has strengthened its position in Solar Power, Hydrocarbon, and Power industries. CORDS^? also showcased its capabilities by participating in leading national and international electrical exhibitions.

SIGNIFICANT CHANGES IN FINANCIAL RATIOS

During the year, on a standalone basis, there was no significant change i.e., which are more than 25% as compared to the previous year, in the financial ratios compared to the previous year. However, there is a slight change in Return on Net Worth as compared to the previous year which is summarized below:

SEGMENTAL OVERVIEW

The company operates under a single product segment i.e., Cables.

INTERNAL CONTROL SYSTEM & THEIR ADEQUACY

The system of Internal Control provides for maintenance of proper accounting records, reliability of financial information and assures its operations are effective and efficient, and its activities comply with applicable laws and regulations. The internal audit is carried out by a team headed by Chartered Accountant and covers key areas of company s business.

INDUSTRIAL RELATIONS AND HUMAN RESOURCES

The Company strives to provide the best working environment with ample opportunities to grow and explore. The Company maintained healthy, cordial, and harmonious industrial relations at all levels throughout the year. Every initiative and policy of the Company takes care of welfare of all its employees. The human resource development function of the Company is guided by a strong set of values and policies. Also, during the year under review the number of permanent employees on the rolls of Company is no(s) 231.

FUTURE OUTLOOK

The vision of CORDS^? is to be recognized as a leading global player, providing products and services, offering comprehensive solutions to the electrical, data and signal connectivity requirements of businesses, institutions as well as household users. It focuses on capturing new markets by developing customers in new and existing territories, to provide new cables for special applications like solar, marine, low temperature cables, cables for automobiles etc.

DISCLOSURE OF ACCOUNTING TREATMENT

In the preparation of the financial statements, the Company has followed the Accounting Standards referred to in Section 133 of the Companies Act, 2013. The significant accounting policies which are consistently applied are set out in the Notes to the Financial Statements.

CAUTIONARY STATEMENT

Statement made in this report in describing the company s objectives, estimates and expectations are Forward looking Statement within the meaning of applicable laws and regulations. They are based on certain assumptions and expectations of future events but the company, however, cannot guarantee that these assumptions are accurate or will be materialized by the company. Actual results may vary from those expressed or implied, depending upon the economic conditions, Government policies and/or other related factors.