D-Link India Ltd Management Discussions

INDUSTRY OVERVIEW

Global Economic Scenario:

The global economic outlook for 2025 is characterized by cautious optimism amidst ongoing uncertainties. Global growth is projected to stabilize at 2.7% in 2025-26, indicating a moderate expansion as inflation approaches targets and monetary easing supports economic activity. (Source: Global Economic Prospects, World Bank – June 2025)

South and East Asia, particularly India, are expected to maintain strong economic growth, benefiting from robust investment and a thriving service sector. However, emerging markets continue to face challenges from geopolitical tensions and structural constraints that could affect long-term development.

The global IT hardware, networking products, and services industry is anticipated to experience steady growth in 2025-26, driven by advancements in Artificial Intelligence (AI), cloud computing, and 5G technologies. Global IT spending is forecasted to grow by 9.3%, reaching $5.74 trillion in 2025, primarily due to increased investments in data center systems, software, IT services, and communications services. The demand for AI-powered infrastructure is expected to significantly boost spending, particularly in IT Hardware sales. The market for internet, networking, and hardware equipment remains substantial and is projected to continue expanding as enterprises prioritize digital transformation. (Source: Gartner – October 2024)

The IT industry is also observing a shift towards sustainability and energy-efficient solutions, as companies prioritize eco-friendly practices. Despite global economic uncertainties, digital transformation and cybersecurity innovations continue to shape the sectors expansion.

Indian Economic Scenario:

Indias IT hardware, networking products, and services sector is poised for robust growth in 2025-26. This growth is driven by digital transformation, AI adoption, and government initiatives such as Digital India and Make in India. The Indian IT industry is projected to contribute significantly to the countrys GDP, with IT spending expected to grow 11.1% in 2025. The Union Budget has introduced tax reforms and incentives to boost local electronics production and attract global investments. Additionally, Indias AI and cloud computing market is expanding rapidly, accompanied by increased cybersecurity investments and a thriving startup ecosystem. As the demand for 5G infrastructure and hybrid cloud solutions rises, India continues to strengthen its position as a global technology hub.

(Source: Upforcetech.com)

INDUSTRY OUTLOOK IN INDIA

The IT hardware and networking equipment market in India is poised for significant growth, driven by an accelerating digital transformation across various sectors and robust government initiatives. The market size for IT hardware is estimated to be growing at a CAGR of 7.1%. Similarly, the network equipment market is expected to expand at a CAGR of 5.5% from 2024 to 2030. Key drivers include the widespread adoption of hybrid work models, increasing demand for technology integration and efficient computing systems, and the ongoing digitization of the public sector. The rapid rollout of 5G networks, expansion of IoT devices, and the growing demand for cloud computing, particularly among SMEs, are also fuelling the need for advanced networking solutions such as routers, switches, and other IT equipment. (Source: Research & Markets, India IT Hardware Forecasts (2025-2030).

The IT Hardware market encompasses a wide range of products and technologies, including routers, switches, hubs, modems, network cables, wireless access points, network adapters, network security devices, network management software, and more. These components are designed to facilitate data transmission, routing, switching, and network management to ensure efficient and reliable communication between devices and systems. The networking equipment market in India demonstrates remarkable versatility, catering to a diverse range of sectors that are actively embracing digital transformation. The IT & Telecommunication sector remains a primary driver, continually demanding robust infrastructure to support burgeoning data traffic, 5G rollout, and an expanding subscriber base. Beyond this, the Banking, Financial Services, and Insurance (BFSI) sector is investing heavily in secure and high-speed networks to facilitate online banking, digital payments, and data-intensive financial operations. The Indian government is actively supporting the bolstering of the domestic IT hardware industry, primarily through its flagship "Make in India" initiative and various Production Linked Incentive (PLI) schemes.

OPPORTUNITIES AND THREATS

Indias IT hardware market, including networking products like routers, switches, and cables, offers significant opportunities for 2025-26, driven by favorable factors. Government initiatives such as the expanded PLI schemes for electronics manufacturing are actively promoting domestic production. The rapid digital infrastructure growth, fuelled by the aggressive 5G rollout and data center expansions, is creating substantial demand for advanced networking solutions. This surge is further ampli_ed by increasing internet penetration, widespread digital adoption across sectors, and the rise of transformative technologies like artificial intelligence (AI), cloud computing, and the Internet of Things (IoT), all of which necessitate robust and scalable IT infrastructure.

However, the IT hardware industry in India faces a number of challenges and threats, such as the rising concern over e-waste and the impact of macroeconomic developments like inflation on the affordability of IT equipment. Furthermore, compared to software startups, hardware businesses require significantly more funding for research, development, and manufacturing facilities. This makes it difficult for domestic companies to compete with established brands that have larger economies of scale. Well-known international companies often dominate the Indian hardware market, making it difficult for domestic manufacturers to gain brand recognition and market share. Additionally, the presence of large counterfeit products can pose challenges for organized players. Price is a major factor influencing buying decisions in India. This can put domestic manufacturers at a disadvantage, as they may struggle to compete with the lower prices offered by international brands that can leverage economies of scale.

The Indian IT hardware and networking industry is expected to witness robust growth in FY 2025-26. While some segments like general IT spending might see more measured growth in 2025 compared to previous years, driven by a global economic slowdown, specific drivers within India, particularly government infrastructure projects and the expansion of digital services, will ensure a positive trajectory for networking products and hardware. The "Make in India" initiative will also provide a fillip to domestic manufacturers, potentially leading to increased local sourcing of components and finished products.

D-Link caters to the Small Office Home Office (SOHO) and Small and Medium Business (SMB) Segment, and is closely aligned with the System Integrators. In parallel, the company also targets other key verticals, including Government, Education, BFSI, and Manufacturing, among others. We believe that our understanding of high-performance networking technology, our strategy, and our brand legacy positions us well to capitalize on the industrys growth.

OPERATIONAL REVIEW

D-Link is a major player in the Indian networking market, offering a wide array of products including home and business wireless solutions, network switches, surveillance equipment, network racks, and structured cabling. The company is particularly strong in the structured cabling market, providing a comprehensive range of components essential for building robust and scalable network infrastructures. The future of Indias structured cabling market looks promising, with anticipated rapid growth driven by the escalating demand for higher bandwidths, accelerated digitization of the economy, and significant government investment in infrastructure.

D-Link India is a significant player in the Indian networking market has a strong presence in both consumer wireless and switching sectors. D-Link offers a range of switches, including unmanaged, smart managed, and fully managed options suitable for various business needs, particularly for SMBs. Supporting the "Make in India" initiative, a government program designed to establish India as a global manufacturing hub, D-Link primarily procures its products from Local EMS (Electronic Manufacturing Services) and ODM (Original Design Manufacturer) partners. The company continues to strongly focus on promoting locally manufactured products as part of its ‘Make in India initiative. D-Link India has been granted exclusive rights/license by the parent company to use the D-Link trademark for such locally manufactured products. The Company had made strategic decisions on manufacturing certain products locally through third-party or contract manufacturing with its own brand names, under its own proprietary designs, quality control, and supervision. The Company has made noteworthy progress in this direction and has entered into arrangements with local manufacturers. This strategic shift towards outsourced manufacturing within India is helping the Company to grow faster.

D-Link India is committed to providing world-class customer services and continues to work towards enhancing its existing countrywide distribution and support infrastructure. It has a strong network of National Distributors, Business Distributors, and over 15,000+ resellers reaching out to its customers across the length and breadth of the country, ensuring that its products are available in the remotest parts of the country. To serve its customers in a holistic way, D-Link India has invested in state-of-the-art support infrastructure for both consumers and enterprises. Adopting the digital route, D-Link India has recently announced customer support via WhatsApp for efficient complaint resolution. Now customers can connect with D-Link support team anytime, from anywhere for real-time support.

PRODUCTS & SOLUTIONS Consumer Networking Solutions:

As a world-leading connected home technology provider, D-Link is dedicated to empowering our consumers with a comprehensive range of connected home products that seamlessly work together to create their ideal smart home environment.

Wi-Fi Routers & Mesh Systems:

D-Links Home Wireless range offers cutting-edge connectivity solutions designed for todays smart homes. At the forefront are our EAGLE PRO AI and AQUILA PRO AI product lines - next-generation mesh networking systems powered by artificial intelligence. These AI-enabled devices optimize network performance in

However, the IT hardware industry in India faces a number of challenges and threats, such as the rising concern over e-waste and the impact of macroeconomic developments like inflation on the affordability of IT equipment. Furthermore, compared to software startups, hardware businesses require significantly more funding for research, development, and manufacturing facilities. This makes it difficult for domestic companies to compete with established brands that have larger economies of scale. Well-known international companies often dominate the Indian hardware market, making it difficult for domestic manufacturers to gain brand recognition and market share. Additionally, the presence of large counterfeit products can pose challenges for organized players. Price is a major factor influencing buying decisions in India. This can put domestic manufacturers at a disadvantage, as they may struggle to compete with the lower prices offered by international brands that can leverage economies of scale.

The Indian IT hardware and networking industry is expected to witness robust growth in FY 2025-26. While some segments like general IT spending might see more measured growth in 2025 compared to previous years, driven by a global economic slowdown, specific drivers within India, particularly government infrastructure projects and the expansion of digital services, will ensure a positive trajectory for networking products and hardware. The "Make in India" initiative will also provide a fillip to domestic manufacturers, potentially leading to increased local sourcing of components and finished products.

D-Link caters to the Small Office Home Office (SOHO) and Small and Medium Business (SMB) Segment, and is closely aligned with the System Integrators. In parallel, the company also targets other key verticals, including Government, Education, BFSI, and Manufacturing, among others. We believe that our understanding of high-performance networking technology, our strategy, and our brand legacy positions us well to capitalize on the industrys growth.

OPERATIONAL REVIEW

D-Link is a major player in the Indian networking market, offering a wide array of products including home and business wireless solutions, network switches, surveillance equipment, network racks, and structured cabling. The company is particularly strong in the structured cabling market, providing a comprehensive range of components essential for building robust and scalable network infrastructures. The future of Indias structured cabling market looks promising, with anticipated rapid growth driven by the escalating demand for higher bandwidths, accelerated digitization of the economy, and significant government investment in infrastructure.

D-Link India has a strong presence in both consumer wireless and switching sectors. D-Link offers a range of switches, including unmanaged, smart managed, and fully managed options suitable for various business needs, particularly for SMBs. Supporting the "Make in India" initiative, a government program designed to establish India as a global manufacturing hub, D-Link primarily procures its products from Local EMS (Electronic Manufacturing Services) and ODM (Original Design Manufacturer) partners. The company continues to strongly focus on promoting locally manufactured products as part of its ‘Make in India initiative. D-Link India has been granted exclusive rights/license by the parent company to use the D-Link trademark for such locally manufactured products. The Company had made strategic decisions on manufacturing certain products locally through third-party or contract manufacturing with its own brand names, under its own proprietary designs, quality control, and supervision. The Company has made noteworthy progress in this direction and has entered into arrangements with local manufacturers. This strategic shift towards outsourced manufacturing within India is helping the Company to grow faster.

D-Link India is committed to providing world-class customer services and continues to work towards enhancing its existing countrywide distribution and support infrastructure. It has a strong network of National Distributors, Business Distributors, and over 15,000+ resellers reaching out to its customers across the length and breadth of the country, ensuring that its products are available in the remotest parts of the country. To serve its customers in a holistic way, D-Link India has invested in state-of-the-art support infrastructure for both consumers and enterprises. Adopting the digital route, D-Link India has recently announced customer support via WhatsApp for efficient complaint resolution. Now customers can connect with D-Link support team anytime, from anywhere for real-time support.

PRODUCTS & SOLUTIONS Consumer Networking Solutions:

As a world-leading connected home technology provider, D-Link is dedicated to empowering our consumers with a comprehensive range of connected home products that seamlessly work together to create their ideal smart home environment.

Wi-Fi Routers & Mesh Systems:

D-Links Home Wireless range offers cutting-edge connectivity solutions designed for todays smart homes. At the forefront are our EAGLE PRO AI and AQUILA PRO AI product lines - next-generation mesh networking systems powered by artificial intelligence. These AI-enabled devices optimize network performance in real time, delivering seamless connectivity, adaptive bandwidth management, and an enhanced user experience. This innovation highlights D-Links commitment to embedding intelligence into its core offerings, redefining connected living.

The range also includes whole-home mesh solutions, Wi-Fi 6 routers, AC routers, and 4G LTE routers, all engineered to support high-bandwidth activities with exceptional performance. Wireless N routers provide reliable and efficient connectivity for everyday use. Together, D-Links Home Wireless portfolio offers robust and versatile wireless solutions tailored to meet the diverse networking needs of modern homeowners.

Range Extenders:

No more Wi-Fi dead zones with D-Links range extenders. They are smart, reliable devices designed to boost wireless signal at all time. Whether at home or in the office, these extenders strengthen coverage to keep us connected without interruptions. Setup is quick and hassle-free, making it easy to enhance networks reach instantly. Plus, the lineup includes Wi-Fi 4, Wi-Fi 5, and Wi-Fi 6 USB adapters, giving flexible options to upgrade your wireless experience.

Unmanaged Switches:

D-Links unmanaged switches provide a simple and cost-effective solution for expanding network connectivity. These plug-and-play devices require no con_guration, making them ideal for small businesses and home networks. They offer various port options, including Gigabit and Fast Ethernet, ensuring high-speed data transfer and reliable performance. With sturdy designs and energy-efficient technology, D-Link unmanaged switches deliver seamless connectivity and enhanced network efficiency without the need for complex setup or management.

Security Components:

D-Links CCTV accessories are designed to be the silent backbone of any surveillance setup, delivering reliable performance where it matters most. From high-quality CCTV cables to durable power supplies, each component is built to ensure uninterrupted connectivity and consistent power flow for security systems. Engineered for efficiency and ease of installation, these accessories complete your surveillance network with the trusted reliability D-Link is known for.

ADDON Series (Accessory range):

D-Link continues to expand and diversify its product portfolio in the consumer segment with the introduction of the ADDON series — a premium range of accessories designed to complement todays tech-savvy users digital ecosystems. This thoughtfully crafted lineup includes reliable mobile adapters and power strips, along with versatile C to C cables to enhance connectivity and charging convenience. True to D-Links mark of quality and trust, the ADDON series delivers dependable performance and seamless compatibility, ensuring that every accessory upholds the brands commitment to innovation and customer satisfaction.

Enterprise Networking Solutions:

D-Links Enterprise Solutions in India embody the brands commitment to delivering intelligent, scalable and future-ready networking infrastructure. Designed to meet the evolving demands of modern businesses, D-Link offers a comprehensive suite of enterprise-grade products that ensure seamless connectivity, robust security and operational efficiency.

Switching Solutions:

D-Links enterprise-grade switches are engineered for high-performance networking across diverse business environments. The portfolio includes smart managed, fully managed, data center, and industrial switches, offering features like 10 to 100 Gigabit connectivity, advanced security protocols, and flexible management options. With support for high throughput, Power over Ethernet (PoE) capabilities, and energy-efficient designs, these switches provide reliable and cost-effective network operations.

Wireless Solutions:

Catering to diverse business needs, D-Links enterprise wireless solutions include robust and scalable networking options. From access points to controllers and management software, these offerings ensure reliable connectivity and seamless integration for modern workplaces. Designed for efficiency and performance, D-Links wireless solutions empower businesses to enhance productivity and maintain consistent connectivity across operations.

Structured Cabling:

D-Links structured cabling solutions provide dependable connectivity tailored for various networking environments. The portfolio includes a comprehensive range of copper solutions in UTP/STP (Cat5, Cat6, Cat6A), fiber vertical and horizontal solutions, and connectivity accessories. Engineered for seamless data transmission and network reliability, these solutions facilitate straightforward deployment and maintenance, making them ideal for businesses aiming to enhance their network infrastructure performance. In addition, D-Link offers advanced Datacenter Solutions featuring high-density MPO and high-performance OM4/ OM5 fiber solutions, catering to the growing demands of modern data centers with superior scalability and efficiency.

Network Enclosures:

D-Links network enclosure offerings encompass a variety of robust solutions designed to accommodate diverse network setups. From wall-mount and floor-standing (indoor and outdoor IP66-rated) enclosures to smart racks, these products ensure secure housing and organization of networking equipment. Available in multiple sizes and configurations, D-Links enclosures prioritize durability and ease of installation, catering to both small office environments and large-scale deployments.

Financial Performance:

The Company demonstrated robust financial performance for the fiscal year ending March 31, 2025. Revenue for the year reached Rs. 1,39,620.72 lakhs, marking an increase from the Rs. 1,24,036.99 lakhs reported in the previous fiscal year. Profit Before Tax (PBT) for the year under review stood at Rs. 13,802.86 lakhs, an improvement over the Rs. 12,166.26 lakhs recorded in the prior year. Furthermore, Profit After Tax (PAT) for the fiscal year 2024-25 was Rs. 10,305.29 lakhs, up from Rs. 9,073.89 lakhs in the preceding year.

Key Financial Ratios:

	FY 2025	FY 2024
1 Current Ratio	2.51	2.45
2 Return on Equity Ratio (%)	23.69%	23.38%
3 Earning Per Equity Share	29.03	25.56
4 Trade payables turnover ratio	4.86	4.55
5 Inventory Turnover Ratio	14.63	9.32
6 Debtors Turnover Ratio	3.92	3.83
7 Operational Profit Margin %	8.68%	8.93%
8 Net Profit Margin %	7.48%	7.39%
9 Return on Net worth	22.67%	21.84%

Other financial ratios are disclosed in note 40 to the Standalone Financial Statement.

Human Resources:

We believe in fostering a fair working environment and upholding transparent policies to champion our employees personal growth while simultaneously achieving our corporate objectives. Your Company will continue to maintain its focus on Human Development, as it considers its people resources central to meeting its business objectives. We are committed to creating a workplace where our employees can reach their full potential and make a significant contribution to our success. HR is integrated within the business framework to provide a foundation for building the skill sets required. At D-Link, employees are given opportunities to develop their competence in challenging roles by leveraging the exposure and responsibilities entrusted to them. The HR department conducted POSH Act related seminars for employees throughout the year, with our commitment to a safe and respectful workplace. D-Links dedicated and talented workforce of more than 249 people across India has played a significant role in the Companys achievements and success.

Business Risks and Concerns:

Technology Risk:

The inability to stay up to date with changing technologies and the latest trends is detrimental to business. Digitalization is emerging as a disruptive force for customers, buyers, and technology. This disruption coupled with changes in delivery models and consumer spending patterns could be a threat to growth in traditional IT spending and technology obsolescence. D-Link operates in an ever-evolving and dynamic technological environment, and it is of utmost importance that the Company continuously reviews and upgrades its technology, resources, and processes lest it faces technological obsolescence. The company addresses this with strong support from its parent company on R&D so that it stays ahead of the curve in technology and continuously sets new benchmarks with cutting-edge innovation.

Cybersecurity Risk:

In the hyper-connected world we are in, the risk of cybersecurity incidents that can cause economic losses and/or breach of company and personal information is a reality for any business. In keeping with best practices, the Company has a robust intrusion prevention system in place, which coupled with a strong risk management framework protects the Company against possible cyber security threats. The Company continues to evaluate and assess on an ongoing basis the threat landscape and takes measures as appropriate to safeguard against cyber-attacks.

Competition:

The IT industry is highly competitive, with competition arising from local IT companies and MNC IT hardware companies having a sizable presence in low-cost technologies. This competition can lead to pressure on pricing, vendor consolidation, and hence can impact Company growth and profitability. New competitors are emerging from adjacent markets and distant geographies. D-Links differentiation strategy incorporating its unique business approach has led to its emergence as a leader in the dynamic IT industry. D-Link has developed competencies in various technologies, platforms, and a wide range of product options for customers based on their needs. The Company has a deep knowledge of the domain, a skilled workforce, delivery capabilities, and an efficient sales force to help retain its competitive positioning amongst peers.

Currency risks:

The Companys functional currency is the Indian Rupee, and volatility in currency exchange movements results in transaction and translation exposure. D-Link has substantial exposure to foreign exchange-related risks on account of imports of finished traded products from its parent group companies. The management predicts that the USD currency position will continue to remain volatile. D-Link has a well-established hedging policy which has been followed consistently over the past years. Hedging is undertaken to protect the Company from unfavorable currency movements, and the Company does not undertake any speculative hedging.

Supply Chain Volatility:

Supply chain volatility is a complex and ever-changing challenge. The supply chains of the global semiconductor industry were severely affected after the pandemic and faced further disruptions due to the Russia-Ukraine conflict. Any sudden disruption of global and domestic supply chains poses a risk for the Company. The Company has the right strategies for mitigating the risks and protecting the supply chain.

Internal Control Systems and their Adequacy:

The Company has aligned its current systems of Internal Financial Control with the requirement of the Companies Act 2013. Management maintains internal control systems designed to provide reasonable assurance that assets are safeguarded, transactions are executed in accordance with managements authorization and properly recorded, and accounting records are adequate for the preparation of financial statements and other financial information. The internal audit function also carries out Operations Review Audits to improve the processes and strengthen control of the existing processes. The Audit Committee periodically reviews the functions of internal audit. D-Links internal control systems and procedures adhere to industry standards in terms of effective resource utilization, operational efficiency, and financial reporting. The Company has appointed a reputable firm of Chartered Accountants to oversee and carry out Internal Audits. The Audit is based on an Internal

Audit Plan, which is reviewed each year in consultation with the Audit Committee. In line with international practice, the conduct of Internal Audit is oriented toward the review of Internal Controls. The adequacy of the Companys internal controls is tested from time to time, and control de_ciencies, if any, identified during the assessments are addressed appropriately.

Disclaimer:

Certain statements made in this report relating to the Companys objectives, projections, outlook, estimates, etc. may constitute ‘forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ from such estimates or projections etc., whether expressed or implied. Several factors, including but not limited to economic conditions affecting demand and supply, government regulations and taxation, input prices, exchange rate fluctuation, etc., over which the Company does not have any direct control, could make a significant difference to the Company operations. 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. Readers are cautioned not to place undue reliance on any forward-looking statements. The MD&A should be read in conjunction with the Companys financial statements included herein and the notes thereto. Information provided in this MD&A pertains to D-Link (India) Limited unless otherwise stated.

For and on behalf of the Board of Directors
Tushar Sighat	Amit Pandit
Managing Director & CEO	Director
DIN: 06984518	DIN: 02437092
Mumbai, Dated: May 3, 2025