Danish Power Ltd Management Discussions

Economic Overview

Global Economy Overview1

In CY 2024, the global economy demonstrated resilience, registering a growth of 3.3%, notwithstanding challenges such as geopolitical unrest, persistent supply chain disruptions and inflationary pressure. A key driver of this performance was the robust expansion in Emerging Markets and Developing Economies (EMDEs), which grew by 4.3%, significantly outpacing the 1.8% growth observed in developed economies. This stability in the global economy can be attributed to proactive monetary policies by Central Banks worldwide. These interventions yielded visible outcomes, with global inflation easing to 5.7% in CY 2024 from 6.7% in the previous year.2

Looking ahead, the global economy is projected to maintain its growth trajectory, with GDP growth forecasted at 3.3% for both CY 2025 and CY 2026. This growth is likely to be supported by accommodative monetary policies aimed at ensuring price stability, stimulating economic activity and boosting employment. Inflationary pressures are expected to ease gradually, with global headline inflation projected to decline to 4.2% in CY 2025 and to 3.5% in CY 2026. Emerging Markets and Developing Economies (EMDEs) are projected to sustain their momentum with a 4.2% growth in CY 2025 and 4.3% in CY 2026. In contrast, developed economies are expected to grow at a more moderate pace, 1.9% in CY 2025 and 1.8% in CY 2026.

India continued to maintain its position as the fastest growing major economy, with a robust GDP growth of 6.5% this FY 2024-25, despite a challenging global environment marked by volatility. Strategic interventions under government-led schemes, particularly those focused on infrastructure development and expanding rural connectivity, played a pivotal role in catalysing economic momentum. These efforts spurred economic activity across sectors, with manufacturing, agriculture and technology benefitting from sustained government support. Additionally, inflation moderated to 4.7% in FY 2024-25 from 5.4% in the previous fiscal year4 , which caused a rebound in both urban and rural consumption.

The Indian economy is expected to sustain its growth momentuminFY2025-26,withGDPexpansionexpected to be 6.5%. This outlook is backed by a combination of the governments income tax reform, targeted fiscal initiatives and a supportive monetary environment. Another enabler of growth is the Government of Indias sustained focus on infrastructure development, as evidenced by the H11.21 Lakh Crore capital outlay announced in the Union Budget.5 Complementing this, the Reserve Bank of India (RBI) has lowered the interest rate successively twice by 50 bps6 to infuse liquidity and boost consumption. Inflation is expected to remain stable, thereby strengthening purchasing power and supporting economic momentum. India is keeping a close watch on global trade developments, including new tariff impositions by the United States and is proactively preparing calibrated responses to safeguard national trade interests while preserving long-term strategic partnerships.

As of June 2025, Indias power sector has achieved a total installed capacity of 476 GW, marking a phase of steady and sustained expansion. Currently, approximately half of this capacity is derived from renewable energy sources, such as solar, wind, hydro and nuclear energy, highlighting the countrys gradual shift towards cleaner and sustainable energy solutions. In FY 2024-25, the countrys power generation was targeted at 1900 Billion Units (BU), representing a 9.3% rise over the previous fiscal year. Renewable energy generation is witnessing a strong push owing to increasing environmental concerns and the governments heightened emphasis on achieving the Net Zero carbon emission targets. The surge in renewable energy generation has been strongly supported by rising environmental concerns and government-led initiatives promoting clean energy adoption. Power shortages have drastically declined, dropping from 4.2% in FY 2013-14 to 0.1% in FY 2024-25, reflecting significant improvements in supply-side management and grid reliability. Going forward, India is focused on accelerating its renewable energy capabilities and creating an eco-conscious and reliable energy system. Over the next five years, India plans to add 250 GW of new power capacity, mainly focusing on renewable energy, battery storage and related infrastructure. This planned capacity addition represents a threefold increase compared to previous five-year period.9

Indias per capita electricity consumption has grown significantly over the past decade, rising from 957 kWh in FY 2013-14 to 1,395 kWh in FY 2023-24, reflecting a 45.8% increase and currently in FY 2024-25 it further increased to 1,538 kWh. This growth is driven by improved access to electricity, with the government achieving universal electrification, meaning all villages and households now have power. Rural areas now get about 21.9 hours of electricity daily and urban areas enjoy up to 23.4 hours. In FY 2024-25, India met a record power demand of 250 GW, showing the countrys progress in ensuring reliable energy supply. As investments in renewable energy and power infrastructure continue, per capita electricity consumption is expected to rise, supporting economic growth and a better quality of life.15

The India Power and Distribution Transformer Market was valued at USD 4.50 Billion in 2025 and is projected to reach USD 6.37 Billion by 2031, growing at a CAGR of 5.81% during 2026–2031. This market encompasses both high-voltage power transformers and smaller distribution units (up to 1,000 kVA), which play a critical role in ensuring efficient voltage regulation for efficient long-distance transmission and local electricity distribution.

Growth is being driven by robust urbanisation and industrialisation, which have significantly raised electricity consumption across the country. Utilities, especially those under government electrification initiatives such as Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY), Integrated Power Development Scheme (IPDS) and Saubhagya, dominate the market by procuring these transformers to strengthen rural and urban grids. The ‘up to 1,000 kVA segment represents the largest share by rating, reflecting the widespread deployment of distribution transformers needed for the last-mile supply in villages, towns and small industries.

Regionally, South India held the largest market share in 2025, propelled by strong industrial infrastructure, higher electricity consumption and proactive grid investments. Notable market trends include a shift towards energy-efficient, eco-friendly transformers (e.g., amorphous cores, dry-type) and increasing adoption of smart, digitally monitored units to enable predictive maintenance and reduce downtime.

Despite promising growth prospects, the sector continues to face challenges including aging infrastructure, persistent high Transmission and Distribution (T&D) losses often exceeding 20% and volatility in raw-material price fluctuations that affect manufacturing costs.

However, the outlook remains optimistic. Supportive government policies, coupled with the ongoing smart-grid technologies position the industry for steady, long-term growth.

Danish Power Limited, established in 1985 and headquartered in Jaipur, Rajasthan, is a leading manufacturer of power equipment specialising in transformers, control panels and related solutions. Over nearly four decades, the Company has built a strong reputation for quality and reliability, becoming a trusted partner across the solar, wind and conventional electricity sectors. The Company operates two modern facilities, catering to both Indian and international markets. Danish Power is known for its energy-efficient and technologically advanced solutions and maintains long-standing partnerships with industry leaders such as Tata Power, ABB, Waaree, Jakson, Torrent Power and Siemens.

In 2024, Danish Power marked a significant milestone by becoming a publicly listed company, reflecting its consistent growth and success. Under the leadership of Chairman Mr. Dinesh Talwar, and Managing Director Mr. Shivam Talwar, the Company is on a fast growth trajectory, driven by a commitment to promoting innovation and advanced technologies, product quality and reliability and sustainable and clean energy solutions for the future.

Years of Experience

Renewable Energy Installations Worldwide

Countries Around the Globe

Danish Power Limiteds manufacturing facilities are designed for precision, efficiency and large-scale production. With two advanced plants in Jaipur, covering over 1,00,000 sq. ft, the Company manages core processes such as coil winding, tank fabrication and high-voltage testing entirely in-house. These facilities are supported by a NABL-accredited test lab and ISO 9001, 14001 and 45001 certifications, ensuring top-tier quality, environmental care and workplace safety.

Modern Manufacturing Plants in Jaipur

Total Manufacturing Area

Annual Transformer Manufacturing Capacity

In-house Testing Laboratory

Certified Integrated Management Systems

(INR in Lakhs as per Standard)

Danish Power Limited considers its employees to be the foundation of its success. The Company is dedicated to promoting a positive, inclusive and safe work environment, where every individual feels respected, empowered and encouraged to grow. Danish Power places strong emphasis on skill development, employee engagement and workplace safety. The Company regularly conducts training programmes and learning sessions to enhance the capabilities of its workforce.

As of March 31, 2025, Danish Power employed a total of 450+ individuals. The Company deeply values the dedication, expertise and efforts of its team, recognising them as key contributors to its ongoing growth, innovation and operational excellence.

The Company has a strong internal audit system that is regularly monitored and updated to ensure regulatory compliance, safeguard assets and promptly address any issues. The Audit Committee diligently reviews internal audit reports, takes corrective action as required and maintains open communication with both statutory and internal auditors to ensure the effectiveness of internal control systems. This robust internal audit framework ensures that the Company operates with integrity, transparency and accountability while mitigating risks and safeguarding the interests of stakeholders.

This Management Discussion and Analysis contains forward-looking statements that represent the Companys current expectations and strategic outlook regarding future performance, market conditions and business plans. These statements are based on certain assumptions and are inherently subject to a variety of risks and uncertainties, many of which are beyond the Companys control such as market fluctuations, regulatory changes, raw material price volatility and economic or environmental shifts. As a result, actual outcomes may differ significantly from those anticipated. The Company does not undertake any obligation to revise or update these statements in response to future events or new information and readers are advised to interpret them carefully and not regard them as assurances of future results.