Excellent Wires and Packaging Ltd Management Discussions

OVERVIEW

The Company is in the business of manufacturing of a diverse range of high-quality wires, including Spring Steel Wire, Galvanized Wire (GI Wire), Round Stitching Wire, Brass Wire, Copper Wire, Stainless Steel Wire, Mild Steel (M.S.) & Low Carbon Wire, H.B. & H.H.B. Wire, Annealed Wire, Spiral Wires, and Bailing Wires. The Company has also started the manufacturing and trading of Precious Metals like Gold and Silver Wires which in majority caters to the Gems & Jewellery and other related Industries.

One of the primary forces behind industrialization has been the use of metals. Steel has traditionally occupied a top spot among metals. Steel production and consumption are frequently seen as measures of a countrys economic development because it is both a raw material and an intermediary product. Therefore, it would not be an exaggeration to argue that the steel sector has always been at the forefront of industrial progress and that it is the foundation of any economy.

The wire and cable industry is an essential segment of the electrical equipment industry, supporting infrastructure, power, construction, automobile, and telecom sectors. The Indian wire market has witnessed significant growth driven by government initiatives like Make in India, smart cities, and rural electrification. Increasing industrialization and infrastructure development have also accelerated demand for wires and metal products.

Packaging currently stands as the fifth largest sector in the Indian economy, reflecting its pivotal role in driving industrial growth and innovation. With an annual growth rate of 22-25%, the industry has become a preferred hub for packaging solutions, bolstered by advancements in technology and infrastructure.

India has the largest population in the world in the age bracket of 5-24 years with 580 million people, presenting a huge opportunity in the education sector. At, the same time Indias auto components industrys market share has significantly expanded, led by increasing demand for automobiles by the growing middle class and exports globally. India has potential to become a global manufacturing hub and by 2030, it can add more than US$ 500 billion annually to the global economy.

Technological advancements are enhancing productivity and quality, while rising export potential offers opportunities for market expansion. All of the above factors and industries will drive the demand for our Wires & Wire products including Galvanized wires, M.S. wires, Copper wires, and Steel wire ropes, etc.

INDUSTRY STRUCTURE AND DEVELOPMENTS

Indian Steel Industry

India continues to be the worlds second-largest producer of crude steel and remains one of the fastest-growing steel markets globally. The Indian steel industry has witnessed sustained growth in production and domestic consumption, supported by infrastructure development, urbanisation, manufacturing activity and rising investment across key end-use sectors.

During FY 2025-26, Indias crude steel production stood at approximately 168.4 million tonnes (MT), while finished steel production stood at approximately 160.90 MT. Finished steel consumption reached approximately 163.7 MT, reflecting strong domestic demand. Compared with FY 2024-25, crude steel production increased substantially, demonstrating the continued expansion of the domestic steel industry.

The growth of the Indian steel sector continues to be supported by the availability of domestic iron ore resources, a large domestic market, competitive labour costs and increasing investments in modernisation and capacity expansion. The industry has also been progressively adopting advanced technologies, improving energy efficiency and focusing on reducing its environmental footprint.

Indias crude steelmaking capacity has expanded significantly and reached approximately 220–222 MT per annum during FY2025-26/Q1 FY2026-27. The Governments National Steel Policy, 2017 envisages increasing crude steel capacity to 300 MT, crude steel production to 255 MT and per-capita finished steel consumption to around 160 kg by 2030-31.

The Government continues to support the development of the steel sector through various policy initiatives, including the Production Linked Incentive (PLI) Scheme for Specialty Steel, the Steel Scrap Recycling Policy, measures for promoting green steel and initiatives aimed at improving raw material security, logistics and technological capabilities. The Government has also introduced further measures under the specialty steel PLI framework to encourage domestic manufacturing and reduce dependence on imports.

The outlook for the Indian steel industry remains positive, supported by sustained expenditure on roads, railways, urban infrastructure, housing, power, manufacturing and other capital-intensive sectors. During April–July 2026, crude steel production increased by approximately 2.4% year-on-year to 56.2 MT, while finished steel production increased by 4.7% to 54.7 MT. Finished steel consumption grew by approximately 7.9% to 56.0 MT, indicating continued strength in domestic demand.

However, the industry continues to face challenges arising from volatility in global steel prices, fluctuations in raw material and energy costs, logistics costs, international trade conditions and increasing competitive pressures. The industrys long-term growth will therefore depend on capacity expansion, product diversification, operational efficiencies, technological upgradation and the transition towards lower-carbon steel production.

Indian Wires and Cables Industry

The Indian wires and cables industry is witnessing strong structural growth, supported by increasing investments in power transmission and distribution, renewable energy, infrastructure, real estate, railways, data centres, electric vehicles and industrial development.

According to CRISIL Ratings, the organised wires and cables industry, representing around 70% of the organised sectors revenue, is expected to witness continued growth in FY 2026-27. Industry volumes are expected to grow by approximately 10% during FY 2026-27, following strong volume growth of more than 20% in the preceding fiscal year. Demand is expected to be supported by investments of approximately ?10–12 lakh crore across renewable energy, power, real estate and emerging sectors such as data centres and smart meters.

The sector is also benefiting from the continued expansion of Indias power infrastructure. Investments in renewable power generation, transmission networks and distribution infrastructure are expected to create sustained demand for power cables and other electrical products. The increasing adoption of solar and wind power, together with the development of transmission infrastructure required for evacuation and distribution of renewable power, is expected to remain an important growth driver.

Indias renewable energy transition is creating additional opportunities for the wires and cables industry. The countrys target of achieving 500 GW of non-fossil fuel-based power capacity by 2030 requires substantial investments in generation, transmission and distribution infrastructure. Recent transmission projects aimed at evacuating renewable power further demonstrate the scale of infrastructure investment required to support this transition.

The commercial and industrial renewable energy segment is also expected to expand significantly. CRISIL estimates that renewable energy capacity in the commercial and industrial segment could increase from approximately 40 GW at the end of FY2025-26 to around 57 GW by FY2027-28, subject to timely expansion of transmission infrastructure and supportive policies.

The wires and cables industry is also benefiting from the growing emphasis on digitalisation and new-age infrastructure. Investments in data centres, smart meters, electric mobility, industrial automation and urban infrastructure are creating new applications for power and specialised cables. According to industry estimates, the Indian cable and wire market is expected to expand from approximately ?1.1 lakh crore in FY2025-26 to around ?1.7 lakh crore by FY2029-30, representing a growth rate of approximately 12% annually.

The industry nevertheless remains exposed to fluctuations in the prices of key raw materials, particularly copper and aluminium, which constitute a significant portion of the cost structure. The ability of manufacturers to pass on changes in raw material prices to customers, maintain operating efficiencies and expand product offerings will remain important factors influencing profitability.

Infrastructure and Construction-led Demand

The Governments continued emphasis on infrastructure development is expected to remain a key driver for the steel, wires and cables industries. Investments in roads, railways, airports, urban infrastructure, housing, power transmission and renewable energy are generating sustained demand for construction materials and electrical infrastructure.

Infrastructure spending is increasingly broad-based, extending beyond traditional roads and buildings to include renewable energy projects, transmission networks, data centres, smart grids, electric mobility and digital infrastructure. This expansion of the infrastructure ecosystem is expected to provide long-term growth opportunities for manufacturers of steel products, wires and cables.

Overall, the Indian steel, wires and cables industries are positioned for sustained medium-to-long-term growth, supported by Indias economic expansion, urbanisation, infrastructure development, increasing power demand and transition towards renewable energy. At the same time, companies operating in these sectors will need to remain focused on cost competitiveness, product quality, technological advancement, capacity utilisation, raw material management and sustainability to capitalise on the opportunities emerging in the sector.

OPPORTUNITIES AND THREATS

Opportunities/Strength

- Rise in demand for metal wires & wire products

- Increasing focus on renewable energy and electrification projects

- Growth in housing and infrastructure sectors

- Export potential for value-added wire products

Threats

- Volatility in raw material prices (especially alloy & precious metals)

- Intense competition from organized and unorganized players

- Regulatory and environmental compliance challenges

- Import dependency for certain high-grade raw materials

- Power and logistics cost fluctuations

RISK AND CONCERNS

- Raw material price fluctuations may impact profitability

- Delay in infrastructure projects can affect order inflow

- Compliance and regulatory changes may increase operational costs

- Rising competition from cheaper imports

- Environmental and sustainability challenges

Financial Performance with respect to Operational Performance

The Total Turnover of the Company is Rs. 2,291.97 (In Lakhs) in current year and Rs. 2,243.90 (In Lakhs) in previous year indicating increase by 2.14%. The Company has earned a Profit of Rs. 151.03 (In Lakhs) as compared to Rs. 111.67 (In Lakhs) in the previous year.

Details of significant changes in key financial ratios

In accordance with the amended SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, the Company is required to give details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations thereof:

The Company has identified following ratios as key financial ratios:

Particulars	FY 2025-26	FY 2024-25	% Change	Reason for change of 25% or more as compared to the immediately previous financial year
Trade Receivable Turnover Ratio	4.16	6.76	-38.47%	The ratio declined from 6.76 times to 4.16 times, representing a decrease of 38.47%, mainly due to a significant increase in average trade receivables while net sales remained relatively stable.
Inventory Turnover	7.23	7.42	-2.56%	NA
Interest Coverage Ratio	71.66	17.64	306.24%	During the year, the ratio increased from 17.64 times to 71.66 times, mainly due to a significant decrease in finance costs and improved profitability in the current financial year.
Current Ratio	3.98	17.06	-76.67%	During the year, the decrease in the Current Ratio is primarily attributable to an increase in current liabilities during the year as compared to the previous year, while current assets remained at a comparable level. Resulting in a lower liquidity ratio compared to the previous year.
Debt Equity Ratio	0.09	-	100.00%	During the year, the Debt-Equity Ratio increased from Nil in the previous year to 0.09 during the current year due to the Company availing borrowings during the year. Despite the increase, the ratio remains low, indicating a conservative capital structure with minimal reliance on debt financing.
Net Profit Margin	0.07	0.05	32.57%	During the year, The Net Profit Ratio increased by 32.50% during the year, primarily due to higher growth in net profit after tax compared to the growth in revenue from operations. This reflects improved profitability and better operational efficiency during the financial year.
Return on Capital Employed	0.07	0.06	18.39%	During the year, The Return on Capital Employed increased by 18.39% during the year, primarily due to an increase in profitability, resulting in higher earnings generated from the capital employed. This reflects improved efficiency in the utilization of the Companys capital resources.

Internal Control Systems and their adequacy

The company has implemented proper system for safeguarding the operations/business of the company, through which the assets are verified and frauds, errors are reduced and accounts, information connected to it are maintained such, so as to timely completion of the statements. The Company has adequate systems of Internal Controls commensurate with its size and operations to ensure orderly and efficient conduct of business. These controls ensure safeguarding of assets, reduction and detection of fraud and error, adequacy and completeness of the accounting records and timely preparation of reliable financial information. The company gets internal audit and verification done at regular intervals. The requirement of having internal auditor compulsory by statue in case of listed and other classes of companies as prescribed shall further strengthen the internal control measures of company.

Disclosure of Accounting Treatment

These Financial statements of the Company are prepared in accordance with India Accounting Standards, notified under section 133 of Companies Act, 2013 read along with Companies (Indian Accounting Standards) Rules, 2015 as amended and other relevant provisions of the Act.

Risk Management

The Company has established a well-defined process of risk management, wherein the identification, analysis and assessment of the various risks, measuring of the probable impact of such risks, formulation of risk mitigation strategy and implementation of the same takes place in a structured manner. Though the various risks associated with the business cannot be eliminated completely, all efforts are made to minimize the impact of such risks on the operations of the Company. Necessary internal control systems are also put in place by the Company on various activities across the board to ensure that business operations are directed towards attaining the stated organizational objectives with optimum utilization of the resources. The Company, through its risk management process, aims to contain the risks within its appetite. There are no risks which in the opinion of the Board threaten the existence of the Company.

Cautionary Statement

Certain statements in the reports of the Board of Directors and Managements discussions and analysis may be forward looking statements within the meaning of applicable laws and regulations. Actual results could differ materially from those expressed or implied since Companys operations are influence by many external and internal factors beyond the control of the Company. The Company assumes no responsibility to publicly amend, modify or revise any of these statements on the basis of any subsequent Developments, information or events.

Acknowledgement

Your directors take this opportunity to express their deep sense of gratitude to the vendors, business associates, employees, investors and banks for their continued support and co-operation during the year under review.

For and on behalf of the Board of Directors

Excellent Wires and Packaging Limited

(Formerly known as Excellent Wires and Packaging Private Limited)

Rachit Masalia

Managing Director

DIN: 09108018

Darshil Shah

Director

DIN: 09108019

Date: 31.08.2026

Place: Thane