Divine Power Energy Ltd Management Discussions

In compliance of Regulation 34(3) and 54(f) read with Schedule V of Securities Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations, 2015, please find Management Discussion and Analysis Report forming part of Annual Report.

1. Overview of the Business

Our Company was incorporated on August 24, 2001, as PDRV Enterprises Private Limited under the Companies Act, 1956, the Company underwent a series of name changes in 2023 - first to Dee Power and Electricals Private Limited and subsequently to Divine Power Energy Private Limited, before being converted into a public limited company on August 03, 2023, and renamed as “Divine Power Energy Limited”. Divine Power Energy Limited (DPEL) is an Indian manufacturer of insulated and bare copper and aluminum wires and strips, primarily serving the power distribution, transformer, and heavy machinery industries The Company continues to focus on sustainable growth by leveraging advanced technologies, expanding its market footprint, maintaining strong financial performance, and delivering value to customers and stakeholders.

2. Opportunities and Threats

Divine Power Energy Limited operates in a dynamic and evolving power and electrical equipment industry, characterized by increasing demand for reliable and efficient energy transmission solutions. The Company is well-positioned to capitalize on emerging opportunities through its diversified product portfolio, which enables it to cater to varied customer requirements. It benefits from an established market reputation and long-standing customer relationships, reflecting its commitment to quality and service excellence. Strong quality assurance practices underpin its operations, while its stable financial performance and improving margins demonstrate operational efficiency and prudent management. Further, the Company is guided by an experienced management team with deep industry expertise and a proven track record, providing strategic direction and supporting sustained growth.

In addition, the Company maintains a presence in the broader power and transmission segment, where it contributes through its capabilities, industry linkages, and operational strengths. While continuing to build on its core competencies, the Company remains aligned with evolving sector requirements and aims to support infrastructure development through reliable and efficient solutions.

3. Competition:

Divine Power Energy Limited operates in a highly competitive industry with the presence of both organized and unorganized players across various regions in India, many of whom offer similar products. The key factors influencing competition in this sector include pricing, product quality, durability, timely delivery, reliability, and the ability to adapt to evolving technologies. To maintain its competitive edge, the Company continuously upgrades its manufacturing facilities and adopts advanced technologies to enhance efficiency and product

performance. It also focuses on optimizing production costs to sustain healthy margins while delivering value to customers.

Further, the Company actively works towards expanding its product portfolio by exploring new product approvals, certifications, and market opportunities, enabling it to strengthen its market position and cater to a broader customer base.

4. Prospect & Outlook

Growing Power Sector: The Indian electrical equipment market is projected to continue its growth trajectory, driven by increasing energy demand, a focus on the significant government investments in power infrastructure. As the government revamps and upgrades the power grid, there will be a continued demand for the companys core products.

Product Diversification: The company has identified new avenues for growth by planning to enter the ancillary industries with its products, specifically tinned copper wires. This diversification can reduce its dependence on the power and transformer sectors and open up new markets for its products.

Expansion of Manufacturing Capabilities: The Company is focused on enhancing its production capacity and operational efficiency through expansion and modernization of its manufacturing facilities. In line with this, the installation of a Continuously Transposed Conductor (CTC) plant is currently in progress, which is expected to strengthen the Companys product capabilities and cater to evolving industry requirements. This initiative will enable the Company to meet increasing demand more effectively while achieving improved economies of scale and operational efficiency.

Technological Advancement: Continuous adoption of advanced technologies and process improvements remains a key focus area, helping the Company enhance product quality, improve productivity, and remain competitive in a rapidly evolving industry.

The management remains confident about the Companys strong future prospects and anticipates a robust performance in the current financial year. Continued support from its established customer base is expected to translate into higher order inflows, thereby contributing positively to the Companys revenue growth and overall financial performance.

5. Risks And Concerns

The company recognizes several risks that could impact operations. Key risk factors include volatile input costs (copper and aluminium prices), intense industry competition, regulatory changes and macroeconomic volatility. For instance, the MD&A notes that “since major raw material for our company is copper and aluminium, our margins are mainly linked to commodity prices” and that overall “the macro-economic situation will remain challenging” with high inflation, interest rates and currency pressures.

To mitigate these risks, the Company maintains long-term supply arrangements and a dependable vendor base, including established suppliers, ensuring stability in procurement and continuity in operations. Further, the Company has

implemented appropriate preventive and risk management measures to address potential challenges, with a focus on sustaining operational stability and achieving consistent growth.

It also emphasizes long-term supply contracts and a reliable vendor base (NALCO, Hindalco, etc.) to reduce procurement risk.

6. Discussion on Financial Performance with respect to Operational Performance

The details of the financial performance of your Company are reflected in the Balance Sheet, Profit & Loss Account and other Financial Statements, appearing separately. Highlights are provided below:

(INR Lakhs)

The financial performance of your Company has been further explained in the Directors Report of your Company for the year ended 31^st March, 2026 appearing separately.

7. Economic Outlook

The long-term fundamentals of the Indian economy continue to be strong due to rising incomes and large investments. These growth drivers are expected to sustain over a long period of time. At the same time, there are some concerns due to uncertain global economic environment and slow recovery in developed markets.

8. Human Resources

The Company keeps developing its organizational structure consistently over time efforts are made to follow excellent Human Resource practices. Adequate efforts of the staff and management personnel are directed on imparting continuous training to improve the management practices. The objective of your company is to create a workplace where every person can achieve his or her potential. The employees are encouraged to put in their best. Lots of hard work is put in to ensure that new and innovative ideas are given due consideration to achieve the short and long term objectives of your company.

The employees are satisfied and having good relationship with management.

9. Cautionary Statement

Certain statements in the Management Discussion and Analysis describing your Companys views about the industry, expectations, objectives etc. may be forward looking within the meaning of applicable laws and regulations. Actual results may differ from those expressed or implied in these statements. Your Companys operations may, inter-alia, be affected by the supply and demand situations, input prices and availability, changes in Government regulations, tax laws, government or court decisions and other factors such as industry relations and economic developments etc. Investors should bear this in mind when considering the above statements.

10. Year on Year Financial Performance During FY 2025-2026

Divine Power Energy Limited delivered strong growth across all key financial parameters compared to FY 2024-2025.

• Revenue grew by 21.8%, increasing from Rs.34166.78 Lakhs in FY 20242025 to Rs. 41598.29 in FY 2025-2026. This growth was driven by higher order execution, stronger demand in the power and transformer sector, and improved capacity utilization.

• Net Profit rose by 123%, from Rs. 915.30 Lakhs to Rs. 2041.57 Lakhs.

• Share Capital increased by 5.05%, from Rs. 2376.51 Lakhs to Rs. 2496.51 Lakhs, reflecting fresh infusion of equity capital through Preferential issue.

• Reserves & Surplus registered a sharp rise of 57.03%, reaching Rs. 9784.09 Lakhs in FY 2025-2026 from Rs. 6230.52 Lakhs in the previous year. This reflects retained earnings, premium from fresh capital raised, and strengthening of the companys financial base.

• Total Liabilities increased significantly by approximately 37.75%, from ?9819.33 lakhs to ?13526.58 lakhs, indicating higher borrowings and trade liabilities to support the increased scale of operations.

• Net Worth (Equity) strengthened by approximately 68%, moving from Rs. 8607.02 lakhs in FY 2024-2025 to Rs. 12280.60 lakhs in FY 2025-2026, underscoring a stronger balance sheet and improved shareholder value.