Cybele Industries Ltd Management Discussions

1. Industry Structure, Developments and Economic Overview

The global economy remained resilient during FY 2025-26 notwithstanding geopolitical uncertainties, evolving trade dynamics, volatility in energy and commodity prices, and continuing disruptions in supply chains. The sustained global emphasis on infrastructure development, energy transition, electrification and digitalisation continues to underpin long-term demand for electrical and infrastructure-related products.

The Indian economy demonstrated continued resilience, supported by domestic consumption, infrastructure spending, manufacturing momentum and public and private capital investment. As per the First Advance Estimates of the National Statistical Office, Indias real GDP is estimated to have grown by 7.4% during FY 2025-26. The Governments sustained thrust on power generation and transmission, renewable energy, transportation, urbanisation, housing, digital infrastructure and domestic ("Make in India") manufacturing continues to create a favourable operating environment for the wires and cables industry.

The Indian wires and cables industry, comparable in structure to peers, remains an integral component of the countrys power and infrastructure value chain, serving residential, commercial, industrial, infrastructure, automotive, railway, telecommunication and renewable-energy applications. Demand during the year was supported by continuing investment in transmission and distribution networks, renewable energy capacity addition, real estate and construction activity, railway and metro expansion, industrial capital expenditure and emerging demand pools such as data centres, smart metering and electric mobility.

2. Business Review and Financial Performance

The Company is engaged in the manufacture and sale of a diversified range of electrical wires and cables, comprising building wires, flexible cables, power cables, submersible pump cables, automotive and control cables, railway signalling cables and wiring harnesses, catering to residential, commercial, industrial, infrastructure, automotive, power and other specialised applications. The Company is also engaged in property development activities.

During the year under review, the Company continued to focus on strengthening manufacturing capabilities, improving capacity utilisation and operational efficiency, enhancing product mix, maintaining stringent product quality standards, and expanding its customer and dealer/distributor network. The Companys diversified portfolio provides exposure across multiple end-use sectors and enables it to participate in opportunities emerging from infrastructure creation, electrification, industrialisation and the transition to renewable energy.

Financial and operational performance during the year was influenced by end-market demand, product mix, input (copper, aluminium and PVC) prices, competitive intensity, operating costs and working-capital cycles. The key financial highlights for the year, in comparison with the previous year, are set out below:

Particulars (Rs in Lakh, unless stated)	FY 2025-26	FY 2024-25
Revenue from Operations	3364.17	2150.81
Profit Before Tax	3511.32	(1155.06)
Profit After Tax	3498.45	(1180.68)
Earnings Per Share (?)	32.71	(11.04)

3. Segment / Product-wise Performance

The Companys principal business segment continues to be manufacture and sale of electrical wires and cables, with property development constituting the other reportable segment. Within the wires and cables business, the product mix spans building wires, power and control cables, and specialised cables for the automotive, railway and industrial sectors. The Company continued its endeavour to improve the share of higher-value and specialised products in its overall product mix during the year, in line with evolving customer and application requirements.

4. Opportunities, Threats and Outlook

• Opportunities: Indias continuing capital expenditure on power generation, transmission and distribution infrastructure, together with grid integration of renewable energy, presents sustained opportunities for manufacturers of power and specialised cables.

. Growth in electric mobility, railway and metro infrastructure, data centres, smart metering and industrial automation is broadening the addressable market and creating scope for product diversification into higher-value categories.

• Threats: Intensifying competition from organised and unorganised players, volatility in commodity prices, and the pace of execution of infrastructure and industrial projects remain the principal factors that could affect near-term performance.

The medium-to-long-term outlook for the industry remains favourable. The Company intends to capture emerging opportunities by continuing its focus on product quality, manufacturing capability, operational efficiency, customer relationships, prudent cost management and development of specialised products for emerging applications.

5. Risks and Concerns

. Raw Material Price Volatility: Fluctuations in the prices of copper, aluminium, PVC and other key inputs, which constitute a significant portion of manufacturing cost, may impact margins and working-capital requirements.

. Competitive Intensity: The presence of established organised players alongside regional and unorganised manufacturers may exert pressure on pricing and margins.

. Working Capital: Adequate working capital is required for procurement, inventory and receivables management; commodity-price movements and customer credit cycles may affect requirements.

. Project and Market Risk: Delays in approvals, financing, execution or commissioning of infrastructure and industrial projects may affect demand realisation.

• Regulatory and Quality Risk: The industry is subject to product standards, safety norms, environmental regulations and other statutory requirements; consistent compliance and quality assurance remain critical.

• Supply Chain and Geopolitical Risk: Global geopolitical developments and trade-related disruptions may affect commodity prices, freight costs, logistics and input availability.

These risks are monitored on an ongoing basis and are managed through prudent procurement and inventory management, operational controls, customer and supplier management, and continuous tracking of market conditions, consistent with the Companys Risk Management Policy.

6. Internal Control Systems and their Adequacy

The Company has in place an internal control framework commensurate with the size, scale and nature of its operations, designed to safeguard assets, ensure proper authorisation and recording of transactions, maintain reliability of financial reporting, and support compliance with applicable laws and regulations. The internal control systems are periodically reviewed and tested, and internal audit provides an independent assessment of their adequacy and operating effectiveness, with corrective actions monitored by the Audit Committee. The Board and the management remain committed to continuously strengthening the internal control environment in line with the evolving scale and complexity of the business.

7. Human Resources and Industrial Relations

The Company recognises that a skilled, motivated and engaged workforce is central to sustainable growth. During the year, the Company continued to invest in employee training and skill development, productivity improvement, workplace safety and organisational discipline. Industrial relations remained cordial throughout the year. The Company also continued its focus on product quality and process improvement in line with applicable standards and evolving customer requirements across infrastructure, renewable energy, automotive, railway and industrial applications.

8. Environment, Health and Safety

The Company remains committed to responsible resource utilisation, energy efficiency, waste minimisation and compliance with applicable environmental, health and safety requirements. The Company will continue to evaluate opportunities to improve operational efficiency and adopt responsible and sustainable manufacturing practices as part of its long-term growth strategy.

9. Cautionary Statement

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or plans may constitute "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed or implied due to various factors, including changes in economic conditions, market demand, competitive intensity, raw-material prices, interest rates, foreign-exchange movements, government policies and regulations, geopolitical developments, project execution timelines, technological changes and other risks and uncertainties. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required under applicable law.

10. Acknowledgement

The Board of Directors places on record its sincere appreciation to the Companys customers, dealers, distributors, suppliers, bankers, financial institutions, investors, business associates, Government authorities and other stakeholders for their continued support and confidence. The Board also acknowledges and appreciates the contribution, commitment and dedication of the employees and workers of the Company at all levels. The continued support and cooperation of all stakeholders remains an important strength of the Company as it seeks to build a stronger and more sustainable business for the future.

	(By order of the Board)
	For Cybele Industries Limited
Place: Chennai	Sd/-
Date: 11.08.2026	Thomas Puthuveetil Joy
	Managing Director
	DIN:01850040