Cords Cable Industries Ltd Management Discussions

The construction and real-estate sectors continued to support demand for house wires and low-voltage cables across residential, commercial and institutional applications. Investment in urban infrastructure, metro rail, airports, water and wastewater treatment, industrial corridors and logistics infrastructure is also expected to create opportunities for specialised cable solutions.

Digital infrastructure is an additional structural demand driver. According to the Economic Survey 2025 26, 5G services are available in 99.9% of districts in India. The expansion of 5G networks, fibre connectivity, cloud services, data centres and industrial digitalisation is expected to support demand for telecom, communication, control and optical-fibre cable solutions.

Inflation moderated during a substantial part of FY 2025 26, and the Reserve Bank of India noted that the growth-inflation environment provided scope for monetary-policy easing during the year. However, inflation remains exposed to food-price movements, weather conditions, energy prices, geopolitical developments and global commodity-price volatility.

Overall, the Indian economic environment during FY 2025 26 provided favourable demand conditions for the wires and cables industry. The medium- to long-term outlook remains supported by infrastructure development, power-sector investment, renewable-energy expansion, manufacturing growth, urbanisation and digitalisation. However, industry performance will continue to depend on project execution, customer demand, commodity-price movements, interest rates, competitive intensity, payment cycles and global economic developments.

Source: National Statistical Office, Provisional Estimates of Annual GDP for FY 2025–26; Ministry of Finance, Economic Survey 2025–26; Reserve Bank of India, Annual Report 2025–26; Ministry of Power, Revamped Distribution Sector Scheme disclosures.

INDUSTRY STRUCTURE AND DEVELOPMENT WIRES AND CABLES INDUSTRY

The Indian wires and cables industry continued to benefit from demand across power transmission and distribution, renewable energy, railways, metro rail, real estate, industrial manufacturing, telecommunications, data centres and other infrastructure sectors during FY 2025 26.

The wires and cables sector plays an important role in India s electrical-equipment value chain and in the development of power, infrastructure, industrial and digital networks. The industry includes wires used primarily in residential, commercial and industrial applications, as well as a wide range of cables including low-voltage, medium-voltage, high-voltage and extra-high-voltage power cables; control and instrumentation cables; solar cables; railway and signalling cables; communication cables; and optical-fibre cables.

Demand conditions during FY 2025 26 were supported by investment in power generation, renewable-energy capacity, transmission and distribution infrastructure, railways, metro systems, housing, industrial facilities, water and wastewater infrastructure, airports, ports and other urban-development projects. Investment in digital infrastructure, including 5G networks, fibre connectivity, cloud services and data centres, also supported demand for communication, control, instrumentation and optical-fibre cable products.

The expansion of electricity infrastructure remains a significant structural driver for the sector. Renewable-energy capacity additions require associated transmission, evacuation and grid-integration systems, while distribution-sector modernisation, system-strengthening projects and smart-metering deployment support demand for power, control and communication cables.

The organised segment is expected to remain well positioned to serve applications that require compliance with technical specifications, quality standards, testing requirements, traceability, project approvals and reliable delivery performance. Product quality, engineering capability, distribution reach, working-capital management, customer service and the ability to offer application-specific solutions are expected to remain key differentiators.

The industry is also witnessing continuing investment in manufacturing capacity, technology, product development and distribution infrastructure. According to CRISIL Ratings, cable-and-wire manufacturers are expected to add capacity of approximately 20 22% by the end of FY 2026 27, with nearly half of the capacity additions expected to come from new entrants. While the capacity expansion reflects favourable demand expectations, it may also increase competitive intensity and place pressure on pricing, margins and capacity utilisation in certain product categories.

CRISIL has indicated that cable-and-wire volume growth exceeded 20% in FY 2025 26. For FY 2026 27, CRISIL expects industry revenue growth of 28 30%, supported substantially by higher product prices and pass-through of elevated raw-material costs, while volume growth is expected to moderate to about 10%.

Looking ahead, the wires and cables industry is expected to benefit from continued investment in infrastructure, renewable energy, power transmission and distribution, railways, metro systems, housing, manufacturing, industrial automation and digital connectivity. However, the industry remains exposed to volatility in the prices of copper, aluminium, polymers and other inputs; competitive intensity; capacity additions; interest rates; customer-payment cycles; and uncertainty in global commodity, trade and economic conditions.

Overall, the medium- to long-term outlook for the Indian wires and cables industry remains constructive, supported by India s infrastructure-development agenda, transition towards cleaner energy, manufacturing growth, urbanisation and expanding digital infrastructure.

OPPORTUNITIES, AND DEMAND DRIVERS

The wires and cables industry is supported by structural demand arising from infrastructure development, power-sector investment, industrial manufacturing, urbanisation, renewable-energy deployment and digital transformation.

Investment in roads, railways, metro systems, airports, ports, industrial corridors, housing, water and sanitation infrastructure, power networks and digital connectivity creates demand for power, control, instrumentation, communication and building-wire products. Demand, however, remains dependent on project awards, funding availability, execution schedules, customer specifications and payment cycles.

The power sector remains a key demand driver for the industry. Rising electricity consumption, renewable-energy integration, strengthening of inter-state and intrastate transmission systems, distribution-system modernisation, smart-metering deployment and reliability-improvement initiatives are expected to support demand for power, control, instrumentation and communication cables.

India has established a transmission-development plan to integrate more than 500 GW of renewable-energy capacity by 2030. The transmission network is planned to expand from approximately 5.04 lakh circuit-km as at February 2026 to approximately 6.48 lakh circuit-km by 2032, while transformation capacity is planned to increase from about 1,429 GVA to 2,345 GVA. These investments are expected to create long-term requirements for transmission, substation, control, communication and associated cable systems.

Urbanisation, residential construction, commercial real estate and industrial-development projects are expected to support demand for house wires, low-voltage cables, control cables and specialised industrial products. The growth of automated buildings, industrial automation, robotics, process control and Industry 4.0 applications is also expected to increase requirements for reliable control, instrumentation, data and communication cables.

Digital infrastructure represents a growing opportunity. The continued rollout of 5G services, expansion of fibre connectivity, cloud computing, data centres, industrial digitalisation and intelligent utility networks are expected to support demand for telecom, communication and optical-fibre products. The Economic Survey 2025 26 reported that 5G services were available in 99.9% of districts in India.

Manufacturing growth, supported by Make in India, Production Linked Incentive schemes and investment in industrial capacity, is expected to generate demand for specialised cables used in factories, process plants, automation systems, machinery, utilities and industrial communication systems. The opportunity will depend on the pace of investment across individual manufacturing sectors and the Company s ability to meet customer specifications, approvals and delivery requirements.

Emerging applications such as electric vehicles, charging infrastructure, energy-storage systems, renewable-energy projects, green hydrogen, data centres and smart-grid systems may create longer-term demand for application-specific cables. These segments require products that meet appropriate technical, safety, performance and environmental requirements.

Sectoral Opportunities:

Renewable Energy and Energy Storage: India s policy objective of achieving 500 GW of non-fossil-fuel power capacity by 2030 requires continued investment in solar, wind, hybrid, hydro, storage, transmission and evacuation infrastructure. Solar plants, wind farms, battery-energy-storage systems and associated substations require specialised power, control, instrumentation and communication cables.

Oil, Gas and Process Industries: Refineries, petrochemical plants, LNG facilities, fertiliser plants, chemicals, pharmaceuticals and other process industries require specialised cables designed for demanding operating environments. Opportunities in these sectors depend on capital expenditure, maintenance shutdowns, capacity expansion, safety requirements and customer-specific technical approvals.

Power - Transmission and Distribution: Transmission and distribution remain major opportunity areas for the cable industry. Investment in renewable-energy evacuation, substations, transmission corridors, distribution-system strengthening, smart metering, industrial electrification and grid reliability is expected to support demand for power, control and communication cables.

Mining and Metals: Mining, mineral processing, steel, aluminium and other metals facilities require robust power, control and instrumentation cables for material handling, process control, utilities and plant operations. Demand will depend on the level of industrial investment and commodity-cycle conditions.

Building and Industrial Automation: The increasing use of building-management systems, process automation, robotics, data networks, safety systems and intelligent manufacturing creates demand for control, instrumentation and communication cables. Customers in these segments generally require reliable products, quality assurance, conformity with relevant standards and application-specific engineering support.

Railways and Metro Systems: Railways, metro rail and urban-transit systems offer opportunities for power, control, signalling, communication and fire-performance cable applications. Railway electrification reached 99.6% of the network by March 2026, and the Government has continued to focus on capacity enhancement, safety, station modernisation, freight connectivity and high-speed rail corridors.

Water, Wastewater and Urban Utilities: Water-treatment plants, sewage-treatment plants, pumping stations, desalination facilities and urban-utility networks require cables capable of resisting moisture, chemical exposure, corrosion and mechanical stress. Increased investment in water supply, wastewater treatment and urban sanitation can create opportunities for specialised cable applications.

Airports, Ports and Logistics Infrastructure: Airport development, terminal expansion, airside infrastructure, port modernisation, warehousing and logistics facilities require electrical, control, communication, security and building-management cabling systems. In March 2026, the Government approved Modified UDAN for FY 2026 27 to FY 2035 36, with an outlay of Rs. 28,840 crore and an objective of developing 100 new airports and 200 modern helipads.

Market Drivers:

The following factors are expected to remain important drivers for the wires and cables industry:

Investment in power transmission, distribution and renewable-energy integration.

Infrastructure development across railways, metro systems, roads, airports, ports, urban utilities and industrial corridors.

Growth in residential, commercial and industrial construction.

Manufacturing investment, automation and process-industry expansion.

Expansion of 5G, fibre networks, cloud infrastructure and data centres.

Development of electric-mobility, charging and energy-storage infrastructure.

Increasing customer preference for quality, traceability, tested products and compliance with technical standards.

Gradual formalisation of the industry and demand for organised manufacturers in technically demanding applications.

Collectively, these demand drivers provide medium- to long-term growth opportunities for the Indian wires and cables industry. The extent to which individual companies benefit will depend on their product range, technology, customer approvals, quality systems, project-execution capability, working-capital strength, pricing discipline and ability to manage input-cost volatility.

The Company evaluates opportunities in these sectors in line with its specialised product portfolio, applicable technical standards, customer-approval requirements and commercial-risk parameters.

Source: Ministry of Power and Central Electricity Authority transmission-planning disclosures; Ministry of Railways and Government of India infrastructure disclosures; Ministry of Finance, Economic Survey 2025–26; Government of India, Modified UDAN announcement; CRISIL Ratings industry publications.

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 its specialized expertise, the Company has built a strong presence in the B2B segment by consistently aligning technology, quality, and customer needs.

The Company s comprehensive 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 specialized 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 its distinct ability to deliver customized, high-quality, and cost-effective solutions designed precisely around customer specifications. This operational flexibility, combined with deep technical know-how, has positioned the Company as a preferred partner for large-scale institutional projects where reliability is non-negotiable.

The operational backbone of CORDS? comprises two advanced manufacturing facilities strategically located in Rajasthan: the Kaharani unit, with an annual capacity of approximately 35,000 core-cable-kilometres, and the Chopanki unit, with an annual capacity of approximately 30,000 core-cable-kilometres. Together, these facilities enable a combined production capacity of roughly 65,000 core-cable-kilometres annually. Both units are equipped with modern technology and backed by stringent quality processes to ensure consistent excellence across all product batches.

Looking ahead, CORDS? remains focused on achieving scalable yet sustainable growth and maximizing operational efficiency. This will be driven by disciplined cost management, proactive equipment maintenance practices, and strategic optimization of the product mix toward higher-margin segments. Continuous investments in manufacturing infrastructure, robust processes, and human capital reinforce the Company s structural ability to serve evolving industry needs while steadily enhancing long-term shareholder value. Standing for innovation, quality, and trust, the Company s enduring focus on customer partnerships and market adaptability ensures it remains a vital contributor to India s infrastructure growth and a recognized name in global connectivity solutions.

RISKS, THREATS, AND CONCERNS

The Company operates in an environment that is influenced by project-based demand, industrial activity, infrastructure investment, raw-material-price movements, customer-payment cycles, interest rates, foreign-exchange movements, regulatory requirements and competitive intensity.

The Company s risk-management approach is designed to identify, evaluate, monitor and mitigate material business risks. Risk-management measures are reviewed periodically by the management and the Board/Audit Committee, as applicable. The risks set out below are not exhaustive and may be affected by factors beyond the Company s control.

Raw-Material Availability and Price-Fluctuation Risk: Copper, aluminium, steel, PVC, insulation and sheathing compounds and other inputs are important raw materials for the Company, and disruptions from geopolitical or unforeseen events may affect the availability or lead time of inputs. Their prices may be affected by global commodity markets, demand-supply conditions, exchange-rate movements, energy costs, freight costs, trade restrictions and geopolitical developments. Volatility in raw-material prices may affect margins, working-capital requirements, order profitability and delivery schedules, particularly where customer-price revisions are not available or are delayed. The Company seeks to manage this risk through vendor diversification, procurement planning, MOUs, inventory monitoring, appropriate customer-price arrangements, price-escalation provisions where contractually available, and other risk-mitigation measures where commercially feasible.

Liquidity, Credit and Working-Capital Risk: Liquidity risk arises from the possibility that the Company may be unable to meet its financial obligations as they fall due. The Company s working-capital requirements may be affected by order execution, raw-material procurement, inventory levels, production cycles, receivable collection and customer-payment delays. The Company monitors cash-flow forecasts, receivables, inventory, supplier obligations, banking facilities and working-capital utilisation. It seeks to mitigate liquidity risk through prudent cash management, periodic review of credit limits, receivables follow-up, inventory planning and maintenance of appropriate banking arrangements. Credit risk may arise if customers delay payment or fail to fulfil their payment obligations. The Company seeks to manage this risk through customer evaluation, contract review, credit monitoring, periodic ageing analysis of receivables and timely follow-up for collection.

Competitive and Market Risk: The wires and cables industry is competitive and is influenced by raw-material prices, demand conditions, capacity additions, customer concentration, product quality, distribution reach, technical approvals and pricing discipline. New entrants, excess capacity, aggressive pricing or shifts in customer preferences may affect the Company s market position and margins. The Company seeks to manage competitive risk through product customisation, quality assurance, customer service, technical capability, cost control, prudent order selection and continuous improvement in manufacturing and operational processes.

Human Resources, Health and Safety Risk: The Company s business requires skilled personnel in manufacturing, engineering, quality, maintenance, supply chain, sales, finance and other functions. The inability to attract, retain or develop suitably qualified employees may affect operational efficiency, quality, customer service and growth plans. The Company seeks to manage this risk through workforce planning, employee training, skill development, performance management, succession planning, employee engagement and workplace-safety practices. Health, safety and employee-welfare requirements are monitored in accordance with applicable laws and internal policies.

Customer, Order-Execution and Project Risk: The Company serves industrial and infrastructure customers, and a portion of its business may be linked to project schedules, customer approvals, technical specifications, delivery milestones and payment terms. Delays in project execution, changes in customer requirements, deferment or cancellation of orders, delayed approvals or deterioration in customer creditworthiness may affect revenue, margins and cash flows. The Company seeks to manage these risks through order evaluation, contract review, technical verification, production planning, customer engagement, project monitoring, quality assurance and receivables management.

Product-Quality, Operational and Business-Continuity Risk: The Company s products are used in industrial and infrastructure applications where quality, reliability, safety and conformance to specifications are important. Product-quality failures, process disruptions, equipment breakdowns, utility interruptions, fire, accidents, supply delays or other operational events could affect production, delivery schedules, customer relationships and financial performance. The Company seeks to mitigate these risks through quality-management systems, testing and inspection processes, preventive maintenance, production planning, safety procedures, employee training, appropriate insurance coverage and business-continuity measures.

Geopolitical, Tariff and Trade Policy, and Supply-Chain Risks: Geopolitical events, trade restrictions, tariffs, sanctions, shipping disruptions, energy-price movements and global supply-chain constraints may affect the availability, lead time and cost of raw materials and other inputs. These developments may also influence export demand and competitiveness in international markets. The Company seeks to mitigate this risk through supplier diversification, procurement planning, monitoring of supply conditions, inventory management and evaluation of alternative sources of supply, where required.

Regulatory, Compliance and Legal Risk: The Company is subject to laws and regulations relating to product standards, quality certifications, environmental matters, health and safety, labour, taxation, foreign exchange, corporate governance, stock-exchange requirements, data protection and other applicable regulations. Changes in law, regulatory interpretation, certification requirements or compliance obligations may result in increased costs, operational changes, delays or penalties. The Company seeks to manage this risk through compliance monitoring, internal controls, legal and professional advice where required, employee awareness and timely implementation of applicable requirements.

Finance Cost Risk: The Company may be exposed to finance-cost risk arising from term borrowings, working-capital facilities, bank charges and non-fund-based facilities availed from banks and financial institutions. Changes in interest rates, borrowing levels, bank margins, credit availability and working-capital utilisation may affect finance costs, profitability and cash flows. The Company monitors its borrowing profile, interest costs, facility utilisation, lender terms and cash-flow requirements. It evaluates refinancing, restructuring or optimisation of banking facilities, where commercially appropriate, with the objective of maintaining a prudent financing structure.

Foreign Exchange Risk: The Company may be exposed to foreign-exchange risk in relation to the import of inputs, export of finished products and other foreign-currency transactions. Adverse exchange-rate movements may affect procurement costs, export realisations, margins and cash flows. The Company monitors its foreign-currency exposure and may use appropriate risk-management measures, including natural hedging, contractual arrangements and forward exchange contracts, in accordance with its approved policies and where considered necessary.

Cybersecurity and Information-Technology Risk: Cybersecurity risk includes the possibility of cyberattacks, unauthorised access, ransomware, data loss, disruption of information systems and compromise of confidential business, employee or customer information. The Company seeks to mitigate this risk through access controls, data backup, system monitoring, user-awareness programmes, periodic review of information-security measures and incident-response procedures.

FINANCIAL & OPERATIONAL PERFORMANCE

During the fiscal year under review, the company delivered strong top-line and bottom-line growth, driven by optimal capacity utilization and an improved product mix. Net revenue from operations grew by 20.05% to reach

During FY 2025 26, the Company continued to pursue business-development opportunities across power, renewable energy, solar, green hydrogen, water and wastewater, process industries and other infrastructure-related sectors. The Company focused on strengthening customer engagement, addressing technical requirements and pursuing customer approvals, wherever applicable, in line with its product capabilities and commercial-risk parameters.

The Company continued to evaluate opportunities in domestic and overseas markets, including markets in the Middle East and Africa. Its export business remains an area of focus, particularly for industrial and infrastructure applications, subject to customer qualification, project awards, product approvals, logistics, foreign-exchange considerations and prudent credit-risk assessment.

The Company undertook customer-engagement and business-development initiatives during the year to showcase its cable products, manufacturing capabilities, technical expertise and quality systems. These initiatives supported interaction with existing and prospective customers and assisted the Company in identifying opportunities across domestic and overseas markets.

The Company remains focused on strengthening its presence in value-added industrial and infrastructure sectors, broadening its customer base, increasing export opportunities, enhancing product offerings, improving quality systems and obtaining relevant customer approvals and certifications. These initiatives are intended to support sustainable growth and create long-term value for stakeholders.

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 in a single reportable business/ product segment, namely Cables.

INTERNAL CONTROL SYSTEM & THEIR ADEQUACY The Company has established internal-control systems commensurate with the nature, size and complexity of its business. These systems are designed to provide reasonable assurance regarding the orderly and efficient conduct of operations, safeguarding of assets, prevention and detection of fraud and errors, maintenance of proper accounting records, accuracy and completeness of financial information, reliability of financial reporting and compliance with applicable laws, regulations and internal policies. The internal audit function is carried out by an independent firm of Chartered Accountant(s) and covers key areas of company s business. Audit findings and corrective action plans are presented quarterly to the Audit Committee of the Board of Directors to ensure proactive risk mitigation and continuous system refinement.

INDUSTRIAL RELATIONS AND HUMAN RESOURCES The Company recognises that its employees are important to its manufacturing capability, product quality, safety performance, customer service and long-term growth. The Company s human-resource approach focuses on attracting, developing and retaining personnel with appropriate technical, operational and managerial capabilities.

During FY 2025 26, the Company continued to focus on workplace safety, technical training, capability development, operational discipline, employee engagement and improvement in shop-floor efficiency. The Company also continued to emphasise compliance with applicable labour, health, safety and welfare requirements.

During the year under review the number of permanent employees on the rolls of Company is no(s) 243. Industrial relations remained cordial during the year.

FUTURE OUTLOOK

CORDS? remains focused on building a sustainable and scalable business across a broad range of cable products serving industrial, infrastructure and emerging end-use sectors. The Company s long-term objective is to strengthen its position as a provider of reliable and customised connectivity solutions for electrical, power, control, instrumentation, data and signal applications in domestic and overseas markets.

The Company intends to broaden its customer base across existing and emerging application areas, subject to its product capabilities, technical standards, customer-approval requirements and commercial-risk parameters. The Company will continue to evaluate opportunities for product development in line with evolving customer specifications, industry standards and application requirements.

The medium- to long-term outlook for the Company s cable business is supported by investment in power transmission and distribution, renewable energy, industrial manufacturing, process industries, transportation infrastructure, water and wastewater systems, automation, digital infrastructure and other infrastructure-development activities.

The Company will seek to benefit from these market drivers through continued focus on customer engagement, product quality, application engineering, operational efficiency, cost management, timely delivery, prudent working-capital management and continuous improvement across its manufacturing and business processes.

The Company s ability to realise its growth potential will depend on overall market conditions, order inflow, project execution, customer approvals, product acceptance, customer-payment cycles, raw-material prices, interest costs, foreign-exchange movements, competitive intensity, availability of skilled manpower and regulatory developments.

Accordingly, the Company intends to pursue growth with commercial discipline, financial prudence, strong risk-management practices and continued focus on long-term customer relationships.

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

Statements in this Management Discussion and Analysis that describe the Company s objectives, expectations, estimates, projections, plans, strategies or outlook may constitute forward-looking statements within the meaning of applicable laws and regulations. Such statements are based on the Company s current expectations, assumptions and estimates. Actual results may differ materially from those expressed or implied due to factors including changes in economic conditions, infrastructure expenditure, customer demand, project execution, raw-material prices, interest rates, foreign-exchange movements, competitive intensity, trade policies, taxation laws, regulatory developments, geopolitical events and other factors beyond the Company s control. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required under applicable law.