Hindusthan Insulators & Industries Ltd Management Discussions

Global economic overview

Global economy grew marginally at an 3.4% in 2025 compared to 3.3% in the previous year, influenced by the US tariff shock of April 2025. Despite being partially unwound through subsequent trade deals, it left effective tariff rates well above pre-2025 levels and heightened trade policy uncertainty.

Advanced economies witnessed a marginal growth from 1.8% in 2024 to 1.9% in 2025, while emerging market and developing economies demonstrated relative resilience, expanding by 4.4% in 2025 compared to 4.3% in 2024.

Global inflation continued its multi-year downward trend in 2025, declining to an estimated 4.1% from 5.8% in 2024.

Regional growth (%)	2025	2024
World output	3.5	3.5
Advanced economies	1.9	1.9
Emerging and developing economies	4.5	4.5

Outlook

Given the challenge of forming stable, real-time assumptions for projections, the IMF World Economic Outlook Update assumes that the reopening of the Strait of Hormuz begins in mid-July 2026, with conditions broadly returning to the prewar state of affairs by March 2027, consistent with commodity price assumptions based on market pricing as of June 10, 2026.

Indian economic overview

The Indian economys real GDP grew at 7.7% in FY 2025-26, compared to 7.1% in FY 2024-25. This growth was driven by strong consumption and increasing investments, reaffirming Indias position as the fastest-growing major economy.

Indias Real GDP at Constant Prices was estimated at RS. 323.12 lakh crore in FY 2025-26, compared with RS. 299.89 lakh crore in FY 2024-25.

Growth of the Indian Economy

	FY 22-23	FY 23-24	FY 24-25	FY 25-26
Real GDP Growth (%)	7.0	7.2	7.1	7.7

* The FY23 figure (7.0%) is from the old base year series (2011-12) as the new series back-data for FY23 will only be available after December 2026.

Under this outlook, global growth is projected at 3.0% in 2026, before recovering to 3.4% in 2027. Global inflation is expected to rise to 4.7% in 2026, as the disinflation trend since 2024 stalls, before easing to 3.9% in 2027.

(Source: OECD Interim Economic Outlook, IMF, World Economic Forum, Federal Reserve, Bank of England, European Central Bank, Bank of Japan)

Growth of the Indian economy quarter by quarter, FY 2025-26

	Q1 FY 25-26	Q2 FY 25-26	Q3 FY 25-26	Q4 FY 25-26
Real GDP Growth (%)	6.7	7.4	6.2	5.8

Note: Q2 revised upward from 8.2% and Q3 from 7.35% under the new base year 2022-23 series released February 27, 2026. Q4 remains an estimate. (Source: MoSPI)

Inflation, policy and currency dynamics

Inflation remained benign through much of FY 2025-26, with full-year CPI estimated at an exceptionally low 2.1%.

This created room for 125 basis points of cumulative rate cuts, supporting consumption and investment.

However, macro stability was accompanied by currency volatility. The Indian rupee depreciated sharply by 9.88% during FY 2025-26 — its steepest fall since FY 2011-12 — touching RS. 94.83 against the US dollar. This reflected global capital flows, a strong dollar environment, and geopolitical uncertainties.

Capital flows and market behaviour

Foreign portfolio investors remained risk-averse, withdrawing a record RS. 1.8 trillion during FY 2025-26 - the largest outflow in 36 years. However, strong domestic institutional inflows of RS. 8.50 trillion provided a crucial counterbalance, highlighting the growing maturity and depth of Indias domestic capital markets.

Indias market capitalisation declined 8% year on year in FY 2025-26 to $4.5 trillion from $4.83 trillion in FY 2024-25, marking the sharpest drop since FY 2022-23. The BSE Sensex declined 7% or 5,467 points in FY 2025-26, against a gain of 5.1% or 3,763 points, in FY 2024-25. Similarly, the Nifty 50 fell 5%, or 1,188 points, in FY 2025-26, compared to a gain of 5.3% or 1,192 points, in FY 2024-25. against a gain of 5.34%, or 1,192 points, in the corresponding period. The downturn was largely driven by the ongoing West Asia conflict and concerns around potential tariff measures under Donald Trump, which weighed on global investor sentiment.

Gold prices surged 64.1% during FY 2025-26 reflecting global risk aversion and safe-haven demand.

Indias net direct tax collections rose 5.12% y-o-y to RS. 23.40 lakh crore in FY 2025-26, though this fell short of the Revised Estimate of RS. 24.21 lakh crore by approximately RS. 80,000 crore. Corporate tax collections came in at RS. 10.99 lakh crore against a target of RS. 11.09 lakh crore, while personal income tax (including STT) stood at RS. 12.41 lakh crore against a target of RS. 13.12 lakh crore — the larger of the two misses, partly reflecting the income tax relief extended to the middle class in the Union Budget 2025-26

Banking sector

Indias banking sector reflected improving financial health, with the gross non-performing asset ratio declining to a multidecadal low of 1.8% as of March 2026, indicating stronger asset quality and disciplined lending practices. This stability was mirrored in profitability metrics, as scheduled commercial banks reported a return on assets of 1.3% and a return on equity of 12.6% for the full year FY 2025-26, underscoring sustained operational efficiency and a healthier Balance Sheet trajectory. Banks also remained well capitalised, with the capital to risk-weighted assets ratio (CRAR) at 17.7% and the Common Equity Tier-1 (CET1) ratio at 15.3%, both multi decadal highs, while profit after tax for scheduled commercial banks crossed RS. 4,05,268 crore in 2025-26, up from RS. 3,78,163 crore the previous year.

Indias growth story

Real Gross Value Added (GVA), which measures economic output excluding taxes and subsidies, grew 7.9% in FY 2025-26, compared with 7.3% in FY 2024-25. At current prices, nominal GVA rose 9.1% to RS. 314.87 lakh crore from RS. 288.54 lakh crore a year earlier.

The tertiary services sector remained a key growth driver, expanding by 9.0% in FY 2025-26 and increasing its share in nominal gross value added to 54.3% from 52.8% in FY 2024-25, supported by broad-based momentum across segments.

During FY 2025-26, financial, real estate, IT and professional services grew by 9.9%, while trade, hotels, transport, communication and broadcasting recorded a strong 10.1% growth, and public administration and other services expanded by 5.8%.

The secondary sector grew 9.1%, accelerating from 8% in the previous year, driven by manufacturing alongside construction growth of 7.1%. This combination of services-led scale and manufacturing acceleration is shaping a more balanced and resilient economic structure.

Consumption and investment

During FY 2025-26, Private Final Consumption Expenditure (PFCE) and Gross Fixed Capital Formation (GFCF) maintained above 7% growth, reflecting a well-balanced demand composition across household spending and investment activity.

Growth catalysts

Policy-led consumption boost: The Union Budget FY 2026-27s tax relief measures—particularly income tax exemptions up to RS. 12 lakh—are expected to stimulate discretionary spending and reinforce consumption-led growth.

Anticipatory Pay Commission impact: The 8^th Pay

Commission, though expected to be implemented from FY 2027-28, is already shaping consumer sentiment, creating a forward consumption impulse.

Monetary stability: The Reserve Bank of Indias calibrated stance, with the repo rate at 5.25%, balances inflation risks with growth support, ensuring macroeconomic stability.

Credit expansion: Improved banking health and liquidity conditions are expected to sustain strong credit growth across MSMEs, housing, and retail segments.

Fiscal prudence with growth focus: The Union Budget maintains fiscal discipline while prioritising infrastructure, MSME support, skilling, and innovation—key levers for longterm productivity.

Outlook

The year under review underscores a defining divergence: a world grappling with uncertainty, and an India navigating it with confidence.

In a global environment marked by fragmentation and caution, India stands out as a rare convergence of stability, scale and structural opportunity. The World Bank has revised its FY 2026-27 growth estimate upward to approximately 6.6%, reflecting resilient domestic momentum even as growth moderates from the previous year. India is expected to retain its position as the fastest-growing major economy.

Growth will be shaped by a combination of strong domestic demand and resilient private consumption, supported by low inflation and GST rationalisation, alongside stable export performance with improved access to key markets. This momentum is further reinforced by sustained policy support, ongoing economic reforms, and a favourable demographic advantage.

While risks persist, particularly from elevated energy prices, subsidy pressures on government spending, and uncertainty in global demand, Indias macroeconomic fundamentals remain strong.

Over the medium term, sustained consumption, gradual investment recovery, and expanding global trade linkages are expected to reinforce Indias position as a key driver of global economic growth.

(Source: Upstox, Economic Times, India Today, 5paisa, Livemint, The Logical Indian)

Industry overview

The Indian power sector remains one of the most diversified and rapidly evolving sectors globally, encompassing conventional sources such as coal, natural gas, hydro and nuclear power, alongside a significantly expanding renewable energy portfolio comprising solar, wind, hydro and bioenergy. The sector continued to witness strong structural transformation during FY 2025-26, supported by the Government of Indias sustained focus on energy security, infrastructure development, industrial expansion and clean energy transition.

Indias power sector growth is being driven by flagship programmes such as Make in India, Smart Cities Mission, Production-Linked Incentive (PLI) schemes, rapid electrification initiatives and rising investments across manufacturing, mobility and infrastructure sectors. These initiatives are increasing the need for reliable, scalable and sustainable power infrastructure, thereby creating long-term opportunities across the power equipment and electrical components value chain.

As of January 31, 2026, Indias total installed power generation capacity stood at approximately 520.5 GW, reflecting the highest-ever annual capacity addition during FY 2025-26. Of this, nearly 52.3% (271.9 GW) comprised non-fossil fuel-based capacity, while renewable energy sources accounted for over 263 GW, representing approximately 50.6% of the countrys total installed power capacity.

India added a record 52.5 GW of power generation capacity during FY 2025-26 (up to January 2026), surpassing the

previous record of 34 GW achieved in FY2024-25. Renewable energy contributed nearly 75% of this incremental capacity addition, including approximately 35 GW of solar and 4.6 GW of wind capacity additions.

India achieved a significant milestone during FY 2025-26 by crossing 50% installed power capacity from non-fossil fuel sources nearly five years ahead of its 2030 Paris Agreement target. As of March 2026, Indias installed non-fossil fuel capacity increased to approximately 283 GW, including nearly 275 GW from renewable energy and around 9 GW from nuclear power.

Solar energy continued to remain the key growth driver within the renewable energy segment. Indias cumulative solar capacity crossed 150 GW during FY 2025-26, while wind energy capacity reached approximately 56 GW. The country also recorded significant progress in rooftop solar deployment and grid-scale renewable integration.

Nuclear power continued to gain strategic importance within Indias long-term energy roadmap. Indias installed nuclear capacity increased from 4.78 GW in 2014 to nearly 8.8 GW by FY 2025-26. The Government of India has outlined an ambitious target of achieving 100 GW nuclear power capacity by 2047 as part of its long-term clean energy diversification strategy.

Despite the accelerating renewable energy transition, thermal power continues to play a critical role in meeting Indias base-load electricity demand. Peak power demand in India touched a record 270.8 GW during 2026 amid rising industrial activity and higher cooling demand, highlighting the continued need for transmission infrastructure strengthening and grid reliability enhancements.

India currently ranks among the worlds leading renewable energy markets and continues attracting substantial domestic and international investments across solar manufacturing, transmission infrastructure, energy storage, smart grids and electrical equipment. The sectors ongoing policy reforms, infrastructure investments and energy transition initiatives are expected to create significant long-term opportunities for stakeholders across the power transmission, insulator and electrical equipment manufacturing segments.

(Source: Times of India , PIB , Hindustan Times , IBEF , Reuters )

Opportunities and threats

The Indian power sector continues to present significant longterm growth opportunities driven by rising electricity demand, rapid industrialisation, infrastructure expansion and the countrys accelerating transition towards clean energy. Indias growing investments across renewable energy, transmission infrastructure, smart grids, railway electrification and urban development are expected to create substantial demand for electrical equipment, transmission components and insulators over the coming decade.

Indias power and renewable energy sector is expected to attract investments exceeding 45,00,000 crore (US$ 525+

billion) by 2032, supported by large-scale renewable energy deployment, transmission expansion and grid modernisation initiatives. The Government of India continues to strengthen the sector through policy reforms, infrastructure spending and programmes focused on ensuring reliable, affordable and sustainable power access across the country.

Indias renewable energy transition remains a major opportunity driver. The country crossed 50% installed power capacity from non-fossil fuel sources during FY 2025-26 and continues targeting 500 GW of non-fossil fuel capacity by 2030. Rapid expansion in solar parks, wind energy, green hydrogen, battery storage and interstate transmission systems is expected to significantly increase demand for power transmission and distribution infrastructure.

Railway electrification also continued to emerge as a major growth catalyst for the electrical equipment industry. Indian Railways achieved more than 98% broad-gauge route electrification by FY 2025-26 and remained on track to achieve complete electrification in the near term as part of its broader net-zero carbon emissions target by 2030. Continued investments in dedicated freight corridors, high-speed rail connectivity and railway infrastructure modernisation are expected to support sustained demand across the sector.

Increasing investments in smart cities, electric mobility, data centres, manufacturing expansion and urban infrastructure development are expected to strengthen long-term electricity consumption and grid infrastructure requirements across India.

The sector also faces certain challenges and competitive pressures. Rising competition from domestic and international manufacturers, input cost volatility, supply chain disruptions and pricing pressures continue to impact the operating environment for electrical equipment manufacturers.

The potential reduction or elimination of anti-dumping duties on imported insulators, particularly from China, may adversely impact the domestic insulator manufacturing industry by increasing low-cost imports and intensifying pricing competition. This could affect margins and market share for domestic manufacturers operating within the segment.

(Source: IBEF , PIB )

Growth drivers

Transmission infrastructure opportunity: Indias transmission sector is expected to attract investments of over RS. 9.1 lakh crore by 2032, driven by the need to strengthen the national grid and facilitate renewable energy integration. Planned additions of more than 191,000 circuit kilometres of transmission lines and 1,274 GVA of transformation capacity are expected to generate sustained demand for high-voltage insulators.

Renewable energy target: Indias ambition to achieve 500 GW of non-fossil fuel energy capacity by 2030 is accelerating investments in transmission and evacuation infrastructure. The growing deployment of solar, wind, and hybrid projects is expected to create significant opportunities for the Companys insulator portfolio.

Renewable integration: The National Electricity Plan envisages the integration of over 600 GW of renewable energy capacity by 2032, necessitating substantial investments in transmission corridors, substations, and grid modernisation. This is expected to support long-term demand for electroporcelain and advanced insulation solutions.

Government-led grid expansion: Large-scale programmes such as the Green Energy Corridor, Revamped Distribution Sector Scheme (RDSS), and interstate transmission projects are driving investments across Indias power infrastructure ecosystem, strengthening demand visibility for transmission line components.

Approvals from leading utilities: The Company has secured approvals from several reputed government utilities for the supply of disc insulators, porcelain long rod insulators, solid- core post insulators, and hollow insulators. These approvals position the Company to participate in a wider range of transmission and substation projects while enhancing its domestic market share.

Expanding export footprint: Global investments in power transmission infrastructure, renewable energy, and grid modernization are creating significant export opportunities. The Company continues to strengthen its presence across strategic international markets while expanding its engagement with utility and EPC customers worldwide.

Government policies

1. Insulator division

Revamped Distribution Sector Scheme (RDSS): Supports modernisation and strengthening of power distribution infrastructure, creating demand for insulators used in substations and transmission networks.

National Electricity Plan (NEP): Focuses on significant expansion of transmission and distribution networks to accommodate growing electricity demand and renewable energy integration, driving demand for high-voltage and ultra-high-voltage insulators.

Green Energy Corridor Programme: Facilitates

transmission infrastructure for renewable energy evacuation, increasing requirements for advanced transmission line insulators.

Make in India Initiative: Encourages domestic

manufacturing of electrical equipment and components through policy support and localisation efforts.

2. Conductor division

National electricity plan and transmission expansion programme: The Government is investing heavily in expanding transmission capacity to support rising power demand and renewable energy integration, creating substantial demand for conductors.

PM Gati Shakti National Master Plan: Promotes integrated infrastructure development, including power transmission networks, railways, industrial corridors, and logistics infrastructure.

Green Energy Corridor: Requires significant deployment of high-capacity conductors to evacuate renewable energy from generation centres to consumption hubs.

3. Real estate division

Pradhan Mantri Awas Yojana (PMAY): Supports affordable housing development through incentives, subsidies, and increased housing demand across urban and rural markets.

Real Estate (Regulation and Development) Act (RERA), 2016: Enhances transparency, accountability, and

consumer protection in the real estate sector, improving investor confidence.

Smart Cities Mission: Promotes urban infrastructure development, creating opportunities in residential, commercial, and mixed-use projects.

Company overview

Leveraging a rich legacy of over six decades of technological excellence, The Hindusthan Insulators & Industries Limited (formerly known as Hindusthan Urban Infrastructure Limited) has established itself as one of Indias leading manufacturers of overhead conductors and electro-porcelain high-tension insulators. Founded in 1959 as a flagship enterprise of The Hindusthan Group, the Company is part of a diversified, multi-location and multi-product conglomerate with a strong presence across India. Over the years, it has built a reputation for quality, innovation, and reliability, contributing significantly to the countrys power transmission and distribution infrastructure.

Product-wise performance Insulator division

During the FY 2025-26, the Insulator Division reported a 25.12% increase in revenue from operations, rising from RS. 264.61 Crores in FY 2024-25 to RS. 331.08 Crores in FY 2025-26. However, the division recorded a Profit before tax of RS. 51.28 Crores, compared to a loss of RS. 34.15 Crores in the previous year. The increase in profitability was mainly due to increase in selling price.

The divisions performance during the year was supported by continued demand from transmission and distribution infrastructure projects, railway electrification initiatives and renewable energy-related grid expansion. However, profitability remained impacted by input cost volatility, pricing pressures, competitive market conditions and higher operating costs.

Conductor division

Revenue from operations in the Conductor Division stood at RS. 0.65 Crores during FY 2025-26 as against RS. 0.76 Crores in FY 2024-25, registering a decline of 14.9%.

Real estate division

The Real Estate segment recorded a 3.1 % decline in revenue, from RS. 7.42 Crores in FY 2024-25 to RS. 7.19 Crores in FY 2025-26. Consequently, profit before interest and tax increased to RS. 5.02 Crores, compared to H 4.43 Crores in the previous year.

The divisions performance was influenced by prevailing market conditions, customer demand trends and the pace of project execution during the year. The Company continued to maintain a cautious and disciplined approach towards inventory management, customer engagement and cost optimisation within the real estate business.

Outlook

Indias power sector is entering a transformative phase, driven by growing electricity demand, rapid renewable energy adoption, and sustained investments in infrastructure development. Supported by progressive policy initiatives and structural reforms, the sector is evolving to meet the needs of a fast-growing economy while advancing the countrys clean energy ambitions. These developments are expected to create significant opportunities across the power value chain over the coming decade.

As one of the worlds largest and most diversified power markets, Indias energy mix comprises conventional sources such as coal, hydro, gas, and nuclear power, alongside an expanding renewable energy portfolio. The sector remains fundamental to the nations economic growth, industrial progress, and energy security, while playing an increasingly important role in supporting Indias long-term sustainability and decarbonisation objectives.

Current Energy Mix (as on March 31, 2026)

Indias power sector continues to witness a significant transition towards cleaner and sustainable energy sources. As of March 31, 2026, the countrys installed power generation capacity stood at approximately 485 GW, with renewable energy accounting for an increasing share of the overall energy mix.

The composition of Indias total installed power generation capacity is as follows:

Thermal Power

- Coal: 222,907 MW (46.0%)

- Lignite: 6,620 MW (1.4%)

- Natural Gas: 20,132 MW (4.1%)

- Diesel: 589 MW (0.1%)

Renewable Energy

- Large Hydro: 48,250 MW (10.0%)

- Solar Power: 118,650 MW (24.5%)

- Wind Power: 52,450 MW (10.8%)

- Other Renewable Sources (Biomass, Waste-to-Energy and Small Hydro): 11,250 MW (2.3%)

Nuclear Energy

- Nuclear: 8,780 MW (1.8%)

The growing contribution of renewable energy reflects Indias commitment towards energy security, sustainability, and achieving its long-term climate objectives. Government initiatives, policy support, investments in transmission

infrastructure, and increasing private sector participation continue to drive the expansion of solar and wind power capacities across the country. Renewable energy is expected to play an increasingly important role in meeting Indias rising electricity demand while reducing carbon emissions and dependence on conventional fossil fuels.

Key trends and future developments

Aspect	FY26 data	Key details
Renewable energy shift	Renewables made up 75% of all new power capacity in FY26	Solar drove most additions; Indias non-fossil capacity crossed 283 GW (including large hydro & nuclear)
Capacity additions (FY26)	50.9 GW renewable capacity added (excluding large hydro) — record highest ever	- Solar: 44.6 GW added (crossed 150 GW total)
		- Wind: 6.05 GW added (total 56 GW, 4th globally)
		- Large hydro: 3.7 GW, Nuclear: 0.7 GW
Total installed capacity	520.51 GW as of January 2026	Non-fossil: 52.3% (271.97 GW); Renewable (excl. hydro): 50.6% (263.19 GW)
Per capita power consumption	1,460 kWh in 2024-25 (up 52.6% from previous baseline)	Draft National Electricity Policy projects 2,000 kWh by 2030, 4,000+ kWh by 2047
Long-term projections	874 GW by 2032 (updated Ministry of Power projection)	Original NEP projected 900,422 MW by 2031-32 with 68.4% non-fossil share

Company strategy going forward

In line with Indias continued focus on power infrastructure expansion, renewable energy integration, transmission network strengthening, and industrial development, the Company has adopted a growth-oriented strategy focused on operational excellence, market expansion, product innovation, and sustainable value creation. The strategy is designed to capitalize on emerging opportunities across the power and infrastructure sectors while enhancing profitability and stakeholder value.

Insulator Division

The Insulator Division continues to be the primary growth driver of the Company and is well-positioned to benefit from increasing investments in power transmission and distribution infrastructure, renewable energy evacuation projects, and grid modernization initiatives.

The Company intends to:

- Strengthen the High Tension Insulators Division as the principal growth engine of the Company.

- Successfully implement the ongoing capacity expansion programme, including the installation and commissioning of six additional kilns.

- Enhance operational efficiency, productivity, and cost competitiveness through continuous process improvements.

- Expand market share in domestic and international markets.

- Strengthen the order book and diversify the customer base across utilities, EPC contractors, and industrial customers.

- Increase export contribution and strengthen the Companys global market presence.

- Improve profitability, return ratios, and cash flow generation.

- Reinforce its leadership position in the domestic insulator market through superior product quality, customer service, and timely execution.

- Enhance manufacturing efficiency through process optimization, automation, productivity improvements, and effective cost-control measures.

- Leverage long-standing relationships with utilities, EPC contractors, and other power sector stakeholders to secure a larger share of upcoming transmission and distribution projects.

Real Estate Division

The Company seeks to maximize value from its real estate

assets through a disciplined, strategic, and opportunity-driven

approach. The key elements of its strategy include:

- Undertaking the redevelopment of certain aging warehouse facilities by replacing them with modern warehousing infrastructure. This redevelopment initiative is aimed at enhancing asset quality, improving operational efficiency, and increasing the commercial value of the properties.

- Upon completion, the upgraded facilities are expected to strengthen the Companys ability to attract high-quality tenants, secure improved commercial arrangements, and capitalize on the growing demand for warehousing and logistics infrastructure.

- Evaluating suitable monetization opportunities to unlock value and enhance long-term shareholder returns.

- Strengthening the rental income potential of its properties through asset modernization, improved infrastructure, and enhanced tenant engagement.

Sustainability, innovation and digital transformation

The Company remains committed to responsible growth and sustainable business practices across all its operations.

Key focus areas include:

- Improving energy efficiency and resource utilization across manufacturing facilities.

- Strengthening environmental management practices, waste reduction initiatives, and compliance with applicable sustainability standards.

- Investing in product innovation and process improvements to enhance quality, productivity, and competitiveness.

- Expanding the use of digital technologies for operational monitoring, quality control, customer engagement, and corporate governance.

- Developing employee capabilities through continuous training, skill enhancement, and a strong safety culture.

Outlook

The Company remains optimistic about the long-term prospects of the power and infrastructure sectors in India. Supported by a strong order pipeline, improving operational performance, established customer relationships, and ongoing investments in capacity and technology, the Company is well- positioned to capitalize on future growth opportunities. Management remains committed to achieving sustainable growth, improving profitability, and creating long-term value for all stakeholders.

Emerging trends

Trend	Description
Renewable Energy Expansion	Solar and wind leading capacity additions
Green Hydrogen	Early adoption phase, but high future potential
Smart Grids & Digitalization	Integration of AI, IoT, and smart meters
Energy Storage Systems	Battery and pumped hydro storage scaling up
Electric Vehicles (EVs)	New load centres driving distributed power demand

Opportunities

Investment potential: Indias power sector is expected to attract investments of USD 250-300 billion by 2030, driven by capacity expansion, grid modernization, renewable energy integration, and transmission infrastructure development.

Export opportunities: Growing global demand for renewable energy technologies, power transmission equipment, and smart grid solutions presents significant opportunities for Indian manufacturers to expand their international footprint.

Technological innovation: Advancements in grid flexibility, digitalization, smart metering, and artificial intelligence- enabled demand forecasting are enhancing operational efficiency and transforming the power ecosystem.

Rural and off-grid expansion: Increasing focus on

decentralized energy systems, rural electrification, and distributed renewable energy solutions is creating new growth avenues across underserved and emerging markets.

Way forward

India stands at a pivotal stage in its energy transition journey. Backed by policy support, technological innovation, and sustained investments, the country is well positioned to meet rising energy demand while advancing its sustainability and decarbonization objectives. The sectors future growth will be determined by its ability to balance energy accessibility, reliability, affordability, and environmental responsibility.

Against this backdrop, the Company continues to strengthen its market position by securing approvals from several reputed government utilities for the supply of a wide range of insulator products, including disc insulators, porcelain long rod insulators, solid-core post insulators, and hollow insulators. These approvals are expected to enhance market penetration and support growth in domestic market share.

The Company remains vigilant in monitoring geopolitical developments and global market dynamics. Lessons learned from recent disruptions arising from international conflicts have reinforced the importance of supply chain resilience, business continuity planning, and proactive risk management. By closely tracking global developments, the Company seeks to mitigate potential disruptions and maintain operational stability.

At the international level, the Company is strategically leveraging evolving global trade dynamics to expand its export footprint. The changing geopolitical landscape has created opportunities in key overseas markets, particularly in North America, where the Company has made meaningful progress in strengthening customer relationships and expanding its market presence.

Simultaneously, the Company is accelerating its expansion across high-growth Southeast Asian markets, including Vietnam, Malaysia, and the Philippines. These economies continue to witness significant investments in transmission and distribution infrastructure, presenting attractive opportunities for the Companys products and solutions. This

strategic focus on geographic diversification is expected to strengthen the Companys global footprint, broaden its revenue base, and support sustainable long-term growth.

Risks and concerns

Risk	Mitigation
Market competition risk	- Focuses on product quality, reliability, and technical excellence to differentiate its offerings.
The Company operates in a highly competitive industry, facing competition from domestic manufacturers as well as low-cost international suppliers. Increased competition may exert pressure on pricing, margins, and market share across key product categories.
	- Invests in product development, process improvements, and manufacturing efficiency to maintain competitiveness.
	- Strengthens customer relationships through timely delivery, technical support, and customised solutions.
	- Continuously monitors market developments and competitive dynamics to respond proactively to emerging opportunities and threats.
Trade policy and import risk	- Focuses on value-added products, superior quality standards, and customised solutions that provide differentiation beyond pricing.
Changes in trade policies, including the withdrawal of anti-dumping duties on imported insulators, may increase the influx of low-cost imports and intensify pricing pressures in the domestic market.
	- Enhances operational efficiency and cost competitiveness through continuous process optimisation.
	- Expands customer engagement and strengthens relationships with utilities, EPC contractors, and industrial customers.
	- Closely monitors policy developments and industry trends to formulate appropriate strategic responses.
Power sector cyclicality risk	- Maintains a diversified customer portfolio across utilities, railways, EPC contractors, and industrial sectors.
Demand for the Companys products is closely linked to investments in power transmission, distribution, and infrastructure development. Any slowdown in capital expenditure, policy implementation, or project awards may impact order inflows and revenue growth.
	- Expands participation in emerging infrastructure opportunities and new application segments.
	- Focuses on export market development to diversify revenue streams and reduce dependence on any single market.
	- Continuously monitors sector developments and aligns capacity and business strategies accordingly
Raw material and energy cost risk	- Maintains long-term relationships with key suppliers to ensure supply stability and competitive procurement.
The Companys operations are dependent on key raw materials such as metals, ceramic inputs, and energy resources. Volatility in commodity prices, fuel costs, and power tariffs may increase manufacturing costs and impact profitability.
	- Undertakes strategic sourcing and periodic price reviews to manage procurement costs effectively.
	- Implements energy-efficiency initiatives and process optimisation measures across manufacturing facilities.
	- Continuously evaluates opportunities for cost reduction through operational excellence programmes and productivity improvements.
Project execution and customer delay risk	- Maintains regular engagement with customers to monitor project progress and identify potential bottlenecks at an early stage.
Delays in project execution, funding constraints, approval processes, or payment delays at customer organisations— particularly government agencies and public sector undertakings—may affect order execution schedules, receivable cycles, and working capital requirements.
	- Diversifies the customer base across sectors and geographies to reduce concentration risk.
	- Implements robust project monitoring and contract management mechanisms to improve execution visibility.
	- Strengthens receivables management and collection processes to optimise cash flows.
Quality and manufacturing risk	- Operates a comprehensive quality management system supported by rigorous testing and inspection processes.
Product quality and reliability are critical to maintaining customer confidence and meeting stringent industry standards. Any quality deviation may result in customer claims, reputational damage, and financial losses.
	- Maintains advanced laboratory and testing facilities to ensure compliance with national and international standards.
	- Conducts regular process audits and continuous improvement initiatives across manufacturing operations.
	- Enforces strict supplier quality standards through periodic evaluations and performance reviews.
Liquidity and working capital risk	- Closely monitors working capital metrics through regular reviews and
Extended project cycles, delayed customer payments, and fluctuations in order execution schedules may increase working capital requirements and impact liquidity management.	forecasting mechanisms.
	- Strengthens receivable collection processes and customer credit monitoring systems.
	- Optimises inventory levels through demand planning and supply chain coordination.
	- Maintains adequate banking facilities and financial flexibility to support operational requirements.
Foreign exchange and interest rate risk	- Monitors currency exposures on an ongoing basis and adopts suitable
The Company is exposed to foreign currency fluctuations arising from export transactions and imports of raw materials. Changes in interest rates may also impact financing costs and profitability.	hedging strategies where appropriate.
	- Maintains a prudent capital structure and disciplined treasury management practices.
	- Undertakes periodic financial planning and scenario analysis to assess the impact of market fluctuations.
	- Focuses on maintaining adequate liquidity and financial resilience.
Environment, health and safety (EHS) risk	- Maintains a comprehensive EHS management framework supported by
Manufacturing operations involve exposure to occupational health, safety, and environmental risks. Non-compliance with EHS standards may lead to accidents, operational disruptions, regulatory actions, and reputational impact.	established policies, procedures, and monitoring mechanisms.
	- Conducts regular safety audits, workplace inspections, and risk assessments across manufacturing facilities.
	- Provides continuous training and awareness programmes to strengthen safety culture and employee preparedness.
	- Invests in pollution control systems, waste management practices, and environmental compliance initiatives to minimise environmental impact.

Internal control systems and their adequacy

The Company has established a robust internal control system and procedures commensurate with its size, scale, and complexity of operations. These controls are designed to ensure the orderly and efficient conduct of business, adherence to corporate policies, safeguarding of assets, prevention and detection of fraud and errors, accuracy and completeness of accounting records, and timely preparation of reliable financial information.

The internal control framework facilitates compliance with applicable statutory and regulatory requirements, while supporting the Companys continued focus on revenue growth and operational excellence. Key strategic actions undertaken during the year include cost rationalization, value engineering,

competitive sourcing, and improved credit discipline-all of which have contributed to greater operational efficiency.

The Audit Committee of the Board plays an active oversight role in strengthening internal controls. Internal Audit Reports, covering critical operational and financial areas, are reviewed periodically by the Audit Committee. Recommendations and observations from these audits are acted upon promptly, and necessary corrective measures are implemented to enhance control effectiveness.

The Company remains committed to continuously upgrading its internal control environment through regular process reviews, technology enhancements, and the adoption of industry best practices to ensure sustainable growth and governance compliance.

Human resources and industrial relations

The Company continues to foster an open, transparent, and collaborative work environment that encourages teamwork, accountability, and alignment with business objectives. It firmly believes that human capital is one of the most critical enablers of sustainable growth and long-term success.

To strengthen human resource management, the Company has implemented structured systems and procedures aligned with industry best practices. These initiatives are aimed at enhancing employee engagement, streamlining HR processes, and ensuring compliance with organizational goals.

The Company focuses on attracting, nurturing, and retaining talent by offering competitive compensation packages, a conducive work environment, and ample opportunities for career progression. Structured training programs, skill development initiatives, and well-defined succession planning have been introduced to ensure continuous professional growth and future readiness of employees.

During the year under review, industrial relations remained cordial across all manufacturing units and offices. The management acknowledges the contribution of its workforce and remains committed to maintaining a harmonious and productive work environment.

Financial/operational performance Profit and loss summary

	12M FY26	12M FY25	% Change
Revenues	33,854.37	27,279.11	24.11%
Reported EBITDA	6,568.85	(878.89)
EBITDA Margins(%)	19.40%	(3.22%)	22.62%
(+) Other Income	711.63	608.40	16.97%
(-) Depreciation	903.22	935.91	(3.49%)
(-) Finance Cost	944.62	1,253.74	(24.66%)
Finance cost as % to Revenue	2.79%	4.60%	(1.81 %)
(+) Share of Profit / (Loss) of JV	-	-
Profit Before Exceptional Items & Tax	4,721.01	(3,068.54)
Exceptional Items	(4,705.30)	2,599.97
Profit Before Tax	15.70	(468.56)
PBT Margins(%)	0.05%	(1.72%)	1.77 %
Tax	(803.11)	(288.59)	178.28%
Profit / Loss After Tax	(787.40)	(179.98)	337.49%
PAT margin (%)	(2.33%)	(0.66%)	(1.67 %)

Debt details

	31.03.26	31.03.25	Inc/(Dec)
Long Term Debt	3,801.81	3,536.57	265.24
Current Maturities for Long-Term Debt	-	-	-
Total Long-Term Debt	3,801.81	3,536.57	265.24
Short Term Debt	7,117.46	5,892.46	1225
Gross Debt Level	10,919.27	9,429.03	1,490.4

Financial Ratios

	Year ended 31-Mar-26	Year ended 31-Mar-25	% Variance	Reason for variance
Current ratio	1.82	1.36	33.7%	Increase in current assets and better management of current liabilities resulted in improvement in current ratio.
Debt-equity ratio	0.26	0.22	16.2%	Improvement due to increase in earnings available for debt servicing and reduction in debt obligations during the year.
Debt service coverage ratio	-	-	-	-
Return on equity ratio	(1.85%)	(0.42%)	342.4%	Variation mainly due to reduction in net losses during the current year as compared to previous year.
Inventory turnover ratio	3.49	2.70	29.2%	Inventory turnover improved due to higher sales and efficient inventory management during the year.
Trade receivables turnover ratio	6.44	4.71	36.9%	Improvement due to faster realization of trade receivables and better collection efficiency.
Trade payables turnover ratio	4.31	3.18	35.5%	Increase mainly due to higher purchases and timely payment management during the year.
Net capital turnover ratio	3.04	5.96	-49.0%	Decrease due to increase in working capital base during the current year.
Net profit ratio	(2.33%)	(0.66%)	252.5%	Variation mainly due to reduction in net losses during the year as compared to previous year.
Return on capital employed	0.68%	0.27%	154.0%	Improvement due to better utilization of capital employed and increase in operating profitability.

Key performance highlights

The Company achieved annual revenue of RS. 345.66 crore in FY 2025-26, representing a growth of 23.95% compared to RS. 278.88 crore in the previous year. The growth was driven by improved demand across key customer segments and stronger execution during the year.

Profitability

Reported EBITDA: The Company reported a strong improvement in operating performance during FY 2025-26, with EBITDA of RS. 65.69 crore as against an EBITDA loss of RS. 8.79 crore in FY 2024-25. EBITDA margin improved significantly to 19.40% from (3.22%), reflecting higher revenues, improved operating efficiencies and a favourable product mix.

Profit Before Tax (PBT): The Company reported a profit before tax of RS. 15.70 lakh during FY 2025-26 as compared to a loss before tax of RS. 468.56 lakh in FY 2024-25. Consequently, the PBT margin improved to 0.05% from (1.72%) in the previous year.

Profit After Tax (PAT): The Company reported a net loss of RS. 787.40 lakh during FY 2025-26 as compared to a net loss of RS. 179.98 lakh in FY 2024-25. The higher loss after tax was primarily attributable to the exceptional loss of RS. 4,705.30 lakh and tax expense of RS. 803.11 lakh recognized during the year. Consequently, the PAT margin stood at (2.33%) as against (0.66%) in FY 2024-25.

Cautionary statement

This report is prepared in compliance with the requirements of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and is intended to provide information to the shareholders of the Company. It should not be construed as an offer, invitation, or solicitation for any investment or as a guarantee of future performance. The statements made in this report describing the Companys objectives, projections, estimates, expectations, or predictions may be "forwardlooking statements" within the meaning of applicable securities laws and regulations.

Actual results may differ materially from those expressed or implied due to various risks and uncertainties. Key factors that may affect the Companys performance include, but are not limited to:

- Domestic and global economic conditions impacting demand, supply, and pricing;

- Fluctuations in raw material and fuel costs;

- Delays in execution of projects by customers;

- Changes in government policies, regulatory frameworks, tax laws, and other statutes;

- Competitive pressures in domestic and international markets.

The Company assumes no obligation to publicly update or revise any forward-looking statements, whether due to new information, future events, or otherwise. Readers are therefore cautioned not to place undue reliance on these statements