D-Link India Ltd Management Discussions

Global Economic Scenario:

The global economy for FY 2025-2026 witnessed moderate growth stabilizing at approximately 2.7% despite geopolitical tensions and structural challenges. South and East Asia, and most notably India have emerged as resilient engines of growth, fuelled by strong investment and dynamic service sectors. A defining feature was the continued acceleration of digital transformation across industries. As monetary conditions ease, enterprises have increasingly prioritized IT infrastructure specifically AI, cloud, and 5G to enhance operational agility and long-term sustainability.

For the year 2025-2026, the World Bank identifies a transition toward heightened economic vulnerability arising from geopolitical conflicts, rising energy costs, and widening disparities between advanced and developing nations.

Industry Overview:

The industry continues to operate in an environment characterised by persistent global supply chain constraints and input cost inflation, which are influencing both availability and pricing dynamics across the technology hardware ecosystem.

A key structural factor has been the near-full utilisation of manufacturing capacities in Taiwan, which remains a critical global hub for electronics and semiconductor-related production. This has resulted in extended lead times and sustained pricing pressure across global supply chains, impacting procurement cycles and inventory planning.

In parallel, the rapid acceleration of artificial intelligence (AI) adoption has significantly increased demand for semiconductors, high-performance computing components, and memory products. This surge in demand has led to a notable escalation in memory pricing, thereby influencing overall hardware cost structures across the industry.

The global IT industry continues to evolve rapidly, driven by ongoing digital transformation across sectors and the growing importance of innovation-led growth. Organizations are prioritizing technology investments to remain competitive. Cloud computing, artificial intelligence, and data analytics are reshaping business models, while cyber security has emerged as a critical focus area to address increasing cyber threats and regulatory requirements.

At the same time, companies are expanding into new markets and investing in next-generation solutions, including automation and Internet of Things (IoT), to enhance efficiency and customer experience. Overall, despite short-term challenges, the IT industry remains a key enabler of global economic progress, with strong long-term growth supported by continuous innovation and digital adoption.

The IT networking sector has emerged as the critical backbone for global digital transformation, shifting from traditional connectivity to serve as a strategic enabler of cloud computing, AI workloads, hybrid workplaces, data centers and next generation enterprise applications. While the broader global economy navigates growth stabilization, the networking landscape is experiencing a more accelerated evolution driven by the architecture of connectivity.

According to Gartner (as of April 2026), global IT spending is projected to reach $6.31 trillion in 2026, representing a 13.5% year-on-year growth, reflecting strong momentum driven by AI infrastructure, cloud ecosystems and digital modernisation initiatives.

Indian Economic Scenario:

India remained one of the worlds fastest growing economies during FY 2025-26 and continued to demonstrate strength amid global uncertainties supported by stable macroeconomic fundamentals and sustained domestic demand in the services and manufacturing sectors, alongside increased government capital expenditure on infrastructure and digitization. However, external risks such as geopolitical tensions and fluctuating commodity prices remain areas of concern. Overall, India maintained its growth momentum with prudent fiscal management and political stability.

Indias IT hardware, networking products, and services sector demonstrated strong momentum in 2025-26, driven by accelerating digital transformation, wider enterprise adoption of artificial intelligence, and sustained policy support with initiatives such as Digital India and Make in India. IT spending remained on a steady growth path, driven by increased enterprise technology investments and government-led digitization programs. Policy measures, including tax reforms and production-linked incentives, continued to strengthen domestic electronics manufacturing and enhance Indias attractiveness as an investment destination. Growth was further reinforced by the expansion of AI, cloud computing, and data infrastructure, along with rising cybersecurity spending and a vibrant start-up ecosystem.

INDUSTRY OUTLOOK IN INDIA

Indias IT hardware, networking products, and services sector recorded steady growth in 2025-26, driven by digital transformation, AI adoption, and government initiatives. IT spending grew by around 10% to 12%, supported by strong demand across key industries and continued expansion in cloud, AI, and cybersecurity.

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. Demand for these components that are designed to facilitate

data transmission, routing, switching, and network management to ensure efficient and reliable communication between devices and systems is expected to remain robust.

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) sectors are 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 Opportunities:

The Indian IT hardware and networking industry presents significant growth opportunities, supported by strong government initiatives such as Digital India, Make in India, and Production Linked Incentive (PLI) schemes, which are encouraging domestic manufacturing and attracting global investments. The rapid expansion of digital infrastructure, including 5G rollout, data centres, and cloud ecosystems, along with increasing adoption of artificial intelligence, Internet of Things (IoT), and enterprise digitalisation, is fuelling sustained demand for advanced networking products and IT hardware. At the same time, heightened focus on data localisation and cybersecurity is creating additional opportunities for secure and scalable technology solutions.

The Indian IT hardware and networking industry is expected to witness robust growth in FY 2026-27. While some segments like general IT spending might see more measured growth in 2026 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 India is well positioned to benefit from these trends through its diversified product portfolio, strong distribution network and focus on locally manufactured offerings.

Threats:

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 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.

Further, volatility in foreign exchange markets, particularly USD fluctuations, coupled with rising prices of essential raw materials such as plastics, has contributed to increased production costs for cables, networking equipment, and related hardware products.

In addition, the increase in global fuel costs has had a direct impact on logistics, transportation, and distribution expenses, thereby exerting further pressure on overall input costs and supply chain efficiency.

The Company continues to closely monitor these developments and adopts appropriate procurement strategies, supplier diversification measures, and cost optimisation initiatives to mitigate the impact of such external cost pressures.

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 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. The Company believes that its understanding of high-performance networking technology, its strategy, and its brand legacy positions it well to capitalize on the industrys growth.

D-Link India has a strong presence in both consumer wireless and switching sectors and 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 further enhanced 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 its 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 portfolio delivers advanced connectivity solutions built for todays smart homes. Leading the range are the EAGLE PRO AI and AQUILA PRO AI series-next-generation mesh networking systems powered by artificial intelligence. These AI-enabled solutions optimize network performance in real time, providing seamless connectivity, adaptive bandwidth management, and an enhanced user experience. This innovation reinforces D-Links commitment to embedding intelligence into its core offerings and redefining connected living.

The portfolio also includes whole-home mesh systems, Wi-Fi 6 routers, AC routers, and 4G LTE routers, all engineered to support high-bandwidth applications with outstanding performance. Wireless N routers offer dependable connectivity for everyday use. Together, D-Links Home Wireless portfolio delivers robust and versatile solutions tailored to the evolving networking needs of modern homes.

Unmanaged Switches:

D-Links unmanaged switches offer a simple and cost-effective solution for expanding network connectivity. These plug-and-play devices require no configuration, making them ideal for homes and small businesses. Available in Gigabit and Fast Ethernet variants, they deliver high-speed data transfer and dependable performance. With durable designs and energy-efficient technology, D-Link unmanaged switches ensure seamless connectivity and improved network efficiency without complex setup or management.

Security Components (Cables & SMPs):

D-Links CCTV accessories serve as the dependable backbone of every surveillance deployment, delivering reliable performance where it matters most. From high-quality CCTV cables to durable power

supplies, each component is engineered to ensure uninterrupted connectivity and consistent power delivery. Designed for efficiency and easy installation, these accessories complete surveillance networks with the trusted reliability synonymous with D-Link.

Addon Series:

D-Link continues to strengthen its consumer portfolio with the ADDON Series-a premium range of accessories designed to complement todays connected lifestyles. This thoughtfully curated lineup includes reliable mobile adapters, power strips, and versatile C-to-C cables that enhance charging and connectivity. Backed by D-Links hallmark of quality and trust, the ADDON Series delivers dependable performance and seamless compatibility, ensuring every accessory reflects 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.

Network Management Solution:

D-Links Nuclias network management platform simplifies the deployment, monitoring, and management of enterprise networks through a centralized interface. Designed to support multi-site environments, it enables IT teams to efficiently manage network infrastructure with real-time visibility, automated updates, and proactive monitoring. With enhanced scalability, security, and operational efficiency, Nuclias helps organizations build resilient and future-ready networks while reducing IT complexity.

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 delivered a strong financial performance for the financial year ended March 31,2026. Total revenue for the year stood at Rs.1,57,431.56 lakhs, reflecting a healthy increase from Rs.1,39,620.72 lakhs recorded in the previous financial year. Profit Before Tax (PBT) arose to Rs.13,853.23 lakhs in FY 2026, compared to Rs.13,802.86 lakhs in FY 2025. Profit After Tax (PAT) for the year was Rs.10,294.98 lakhs, marginally lower than Rs.10,305.29 lakhs reported in the preceding year.

Key Financial Ratios:

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

Human Resources:

At D-Link, people remain the Companys most valuable asset and the cornerstone of its long term success.

D-Link is committed to fostering a fair working environment and upholding transparent policies to champion its employees personal growth while simultaneously achieving corporate objectives. D-Link will continue to maintain its focus on Human Development, as it considers its people resources central to meeting its business objectives. The Company is committed to creating a workplace where its employees can reach their full potential and make a significant contribution to the Companys 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, in line 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. Digitization 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 Risk:

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 Risk:

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 cabling

products are subject to fluctuations in the prices of raw materials, such as copper, which is a key component in cable manufacturing. 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 Risk:

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 deficiencies, if any, identified during the assessments are addressed appropriately.

Overall, the Companys internal control framework is designed to ensure transparency, accountability, and integrity in financial and operational reporting, thereby supporting sustainable business growth and stakeholder confidence.

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.