IKIO Technologies Ltd Management Discussions

Economic

Global Economy Landscape

The global economic environment in CY 2025 gradually stabilised following the post-pandemic volatility. Global GDP grew around 3.4% 1 , supported by steady consumer spending and selective investment, though still below the pre-pandemic average of 3.7% 1 (2000-2019). Regional growth varied due to policy shifts, changing trade relationships, and structural challenges in several large economies.

Monetary conditions improved as inflation eased. Global headline inflation rate stabilised at 4.1% 1 in the last quarter of 2025, aided by lower energy and commodity prices and easing supply constraints. In advanced economies, inflation moderated further, with annual inflation averaging 2.7% 2 in the United States and 1.9% 3 in the Eurozone. Emerging Markets and Developing Economies (EMDEs) saw mixed trends; some benefitted from lower import costs, while others faced elevated inflation due to food price volatility, exchange rate shifts, and supply constraints. Following this moderation, central banks adopted cautious policies to maintain price stability.

Economic performance remained uneven. The United States grew at an annual rate of 2.1% in 2025 1 on resilient consumer demand, while the Eurozone economy expanded 1.4% 1 , supported by rising wages and low unemployment. China grew 5.0% 1 as government stimulus offset property-sector adjustments and cautious consumer sentiment. India was among the fastest-growing major economies, with GDP up by 7.7% 4 , driven by strong domestic demand, rising consumption, and sustained public investment in infrastructure.

Beyond cyclical trends, structural factors continued to shape the global economy. Investments in AI, digital infrastructure, advanced manufacturing, and energy transition enhanced productivity and competitiveness.

OUTLOOK

The global economy is expected to expand at a moderate pace in the near term, with GDP projected at around 3.2% 1 in 2027, broadly in line with the previous year. Growth will be supported by easing inflation, gradually normalising monetary conditions, and productivity gains from investments in AI and digital technologies. At the same time, shifts in trade patterns and the realignment of global supply chains are likely to shape investment and trade flows. However, the outlook remains subject to certain uncertainties, including ongoing geopolitical developments in some regions, which may have a bearing on trade routes and market stability. While the extent of the impact remains uncertain, any escalation could influence regional stability and supply chain dynamics. These developments, along with policy uncertainty and narrowing interest rate gaps between developed and emerging markets, may contribute to some volatility in commodity markets and capital flows.

Indian Macroeconomic Overview

During FY 2025-26, the Indian economy continued to perform strongly compared to most global peers, with GDP growth of 7.7% 5 , driven by robust domestic demand and sustained investment activity. This growth was supported by Private Final Consumption Expenditure, which accounted for 61.5% 5 of GDP, along with Gross Fixed Capital Formation, which grew by 7.8% 5 during the year. Public capital expenditure also increased significantly from H 2 lakh crore in FY 2014-15 5 to H12.2 lakh crore (BE) in FY 2026-27 5 , supporting infrastructure development. A significant moderation in food and fuel prices led to lower inflation compared to earlier periods, with average headline CPI remaining below the RBIs 4% target for most of the year. Supported by this stable price environment, the RBI introduced accommodative monetary measures, reducing the report rate cumulatively by 125 basis points to 5.25% 5 . These measures helped improve market liquidity and support sectoral credit growth.

Growth remained broad-based across sectors, with the services sector leading at 9.1% 5 , followed by manufacturing and construction at 7.0% 5 , while agriculture grew at 3.1% 5 . Overall momentum was supported by strong performance in the services and manufacturing sectors, as festive demand and tax reforms contributed to growth.

Fiscal indicators also showed improvement, with the fiscal deficit estimated at 4.4% 5 of GDP in RE FY 2025-26. At the same time, as per the BE, the revenue deficit is estimated at 1.5% 5 of GDP, with effective revenue deficit at 0.3% 5 .

OUTLOOK

Indias real GDP is projected at 7.2% 5 in FY 2026-27, ahead of consensus estimates. In the same period, the government aims to narrow the fiscal gap to 4.4% 6 of GDP. Improvements in capital formation and the expansion of digital public infrastructure are expected to strengthen the medium-term growth outlook.

Expanding free trade agreements and supply chain diversification with partners such as the EU, the UK, and EFTA are likely to widen export opportunities and strengthen Indias position in global trade. At the same time, state-led initiatives such as plug-and-play zones and high-technology clusters are expected to support new investments. 7 However, geopolitical tensions in West Asia may continue to cause some volatility in the Indian rupee, which could affect foreign exchange rates. While strong forex reserves are expected to limit sharp fluctuations, changes in oil prices and global capital flows may influence the rupee and trade in the near term.

Industry Overview

Global EMS Industry Overview

The global Electronic Manufacturing Services (EMS) industry plays a key role in the electronics value chain, supporting the design, assembly, production, and testing of electronic products. As electronics become more integrated across industries such as consumer devices, automotive systems, telecommunications, healthcare equipment, and industrial automation, demand for EMS continues to grow.

In 2025, the global EMS market was valued at USD 648.11 billion 8 , with Asia Pacific holding the largest share at USD 290.45 billion 8 . Countries such as China, India, South Korea, and several ASEAN economies continued to attract electronics manufacturing investments due to favourable industrial policies and strong supply chain networks. North America and Europe also maintained a significant presence in the EMS sector, particularly in specialised segments such as aerospace electronics, healthcare equipment, and industrial automation.

Looking ahead, the global EMS market is expected to grow steadily, reaching USD 689.86 billion in 2026 and projected to expand to USD 1,192.68 billion by 2034 at a CAGR of 7.1%. 8 This growth is likely to be supported by rising EV adoption, the rollout of 5G infrastructure, and increasing demand for smart electronics. At the same time, geopolitical tensions in the Middle East may continue to create supply chain challenges. Disruptions in the Suez Canal and Red Sea could lead to rerouted shipments, extending lead times and increasing freight costs, while higher energy prices may raise the cost of semiconductor materials.

The industry is also expected to face pressure from thin margins, tariff changes, and a shortage of skilled workers, making operational efficiency and workforce development critical for sustaining long-term competitiveness.

Indian EMS Industry Overview

The Indian EMS industry is gradually shifting from assembly-driven manufacturing towards higher-value production. The Indian EMS market was valued at USD 65 billion in 2025 9 . Historically, the sector has been dominated by Low-Mix, High-Volume (LMHV) assembly, particularly in mobile phones and consumer electronics, where domestic value addition has remained limited.

India Electronics Manufacturing Services Market

However, global supply chain diversification strategies such as the China Plus One approach, along with policy initiatives like the Government of Indias PLI schemes, are driving a shift towards High-Mix, Low-Volume (HMLV) manufacturing. This transition is enabling greater participation in higher-value segments such as medical electronics, aerospace, and defence equipment.

Global Tier-1 manufacturers have established large-scale operations in India, positioning the country as an important manufacturing base for global OEMs. At the same time, domestic players are expanding their capabilities, with many pursuing vertical integration through component manufacturing, including bare Printed Circuit Boards (PCBs), while also developing ODM capabilities.

KEY TRENDS AND OPPORTUNITIES

TRENDS	OPPORTUNITIES
China Plus One Supply Chain Diversification	International OEMs are increasingly diversifying manufacturing locations to reduce supply chain risks, enabling India to expand global electronics production and its role as an export hub for smart phones and IT hardware.
Shift from EMS to ODM	Developing in-house design capabilities allows manufacturers to move beyond contract assembly into product design and engineering, enabling them to capture greater value and build deeper partnerships with customers.
Rapid Growth of	Rising EV production is increasing demand for power electronics, Battery
Electric Vehicles (EVs)	Management Systems (BMS), and advanced Printed Circuit Board
	Assemblies (PCBA), and advanced printed circuit board assemblies (PCBA), creating new revenue opportunities for EMS providers.
Industrial Automation and IoT Adoption (Industry 4.0)	Investments in smart manufacturing are modernising production and helping Indian EMS firms meet global quality standards and expand into high-precision sectors such as medical electronics and aerospace.
Expansion of 5G Infrastructure	5G network deployment is increasing demand for locally manufactured telecom equipment such as routers, base stations, and 5G-enabled devices, helping expand domestic production and reduce import dependence.

Indias EMS industry is projected to reach around USD 197.8 billion by 2032 with a CAGR of 17.5%. 9 Over the medium-term, policy support, rising electronics demand, and deeper integration into global supply chains are expected to strengthen Indias position as an emerging EMS hub. However, the sector may continue to face risks from global supply fluctuations and ongoing geopolitical tensions, as India still relies heavily on imported semiconductors and electronic components.

9 P&S Intelligence

Macroeconomic Landscape of Key EMS Verticals

Electronics Industry

Global Scenario

The global electronics industry remains central to technological advancement and industrial growth.

In 2025, it was valued at USD 428.22 billion 10 , driven by rapid digitalisation and AI-enabled hardware across consumer devices, telecom networks, automotive, and industrial automation. A key highlight was the semiconductor market, which grew 26.2% to about USD 795.6 billion, followed by rising demand for advanced chips in AI, data centres and connected devices. 11

Regionally, Asia Pacific accounted for around 37.79% 10 of the global electronic components market, driven by large-scale semiconductor manufacturing in China, India, and South Korea. Semiconductor sales in the region grew over 45%, while other regions saw steady growth, with the

Americas up 31.4% and Europe 6.7%, supported by automotive, industrial, and high-tech applications demand. 11

The global electronics market is projected to reach around USD 468.11 billion in 2026 and USD 1,003.44 billion by 2034, growing at a CAGR of 10%. 10 Growth is likely to be supported by the continued expansion of Edge AI and Internet of Things (IoT) technologies across consumer and industrial applications. As AI is increasingly integrated into electronic devices, demand for advanced components and high-precision manufacturing is expected to rise.

Indian Scenario

Electronics emerged as Indias second-largest export category and one of the fastest-growing segments in the trade basket, with exports reaching USD 22.2 billion 11 in the first half of FY 2025-26. This growth was backed by strong domestic production, which reached around H11.3 trillion in FY 2024-25 11 and continued to expand during FY 2025-26. Mobile phone manufacturing continued to lead the sector, with India now the worlds second-largest producer. More than 300 manufacturing units operated nationwide, contributing significantly to the H 9.34 trillion cumulative production under the Production Linked Incentive (PLI) scheme by September 2025. 11

The sectors manufacturing mix also continued to evolve, with medium- and high-technology segments accounting for around 46.3% 11 of total manufacturing value added. Progress under the India Semiconductor Mission (ISM) accelerated, with 10 semiconductor manufacturing and packaging projects approved across six states, representing total investments of approximately H1.6 trillion in August 2025 11 . The PLI 2.0 scheme for IT hardware, launched in May 2023, began delivering results, supporting domestic production of laptops, servers, and tablets worth over H144.63 billion, along with investments of H8.92 billion. 11 This has helped strengthen local manufacturing and reduce import dependence in key technology segments. Indias electronics manufacturing output is projected to expand significantly in the coming years, with the sector expected to reach over USD 610 billion by 2030. 12 Continued policy support, including initiatives such as the Electronic Component Manufacturing Scheme (ECMS), is expected to strengthen Indias position as an emerging hub in global electronics manufacturing.

However, the sector remains exposed to global supply disruptions and geopolitical uncertainties, given Indias continued reliance on imported semiconductors and electronic components.

10 Fortune Business Insights
11 Electronics For You BUSINESS
12 IMAP

LED Lighting Industry Market

Global Scenario

The global shift towards advanced lighting solutions, followed by energy efficiency and smart lighting technologies, has positioned the LED lighting market at USD 109.11 billion in 2025 13 , alongside the gradual phase-out of incandescent and CFL bulbs.

In 2025, North America accounted for around 21.5% 13 of the global market, supported by demand for energy-efficient commercial lighting and smart home technologies. Europe recorded steady growth, aided by carbon reduction targets and LED adoption in emerging applications such as electric vehicles. Asia Pacific emerged as the fastest-growing market, led by China, India, and Japan, with growth supported by expanding manufacturing capacity, rapid urbanisation, and large-scale industrial and urban lighting upgrades.

Industry demand is evolving with technological advancements. The integration of advanced sensors and AI has enabled adaptive lighting systems that adjust to occupancy and daylight conditions, reducing energy use and maintenance costs. The growing adoption of Surface Mounted Device (SMD) LEDs supports compact and flexible solutions across applications such as automotive lighting, digital displays, and horticulture, while improvements in luminous efficiency and lower manufacturing costs are expanding LED use in infrastructure and commercial projects.

Looking ahead, the global LED lighting market is expected to reach USD 336.90 billion by 2034, expanding at a CAGR of 13.4%. 13 While illumination is likely to continue holding the largest market share, the display and signage segment is expected to grow at a faster pace, supported by high-definition LED and Organic Light-Emitting

13 Fortune Business Insights, 14 Mordor Intelligence

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Diode (OLED) technologies in advertising and consumer electronics. Integration with IoT platforms is also expected to enable connected lighting networks, improving energy efficiency and urban infrastructure.

Indian Scenario

The Indian lighting industry is moving from a lamp-focused market to integrated solutions, supported by energy-efficient infrastructure and smart building systems. The market is estimated at around USD 12.54 billion in 2026 14 , with lighting accounting for nearly 15% 14 of Indias total electricity consumption. The shift to LED technology remains a key driver of the countrys sustainability efforts. Government-led programmes continued to accelerate adoption. Several state governments, including Odisha, Gujarat and Andhra Pradesh, also initiated programmes to retrofit urban lighting systems.

The industrys product mix also continued to evolve. In the previous year, luminaires and lighting fixtures accounted for about 61.25% 14 of total market revenue. This shift was supported by the expansion of smart city projects across major urban centres, increasing demand for sensor-based and IoT-enabled lighting solutions across commercial buildings, public infrastructure, and highway lighting networks. This trend is expected to support revenue growth in the current year, as demand for advanced and energy-efficient lighting solutions increases. Domestic manufacturing strengthened during the year under the PLI scheme for white goods. The industry targeted an estimated

40-45% 14 domestic value addition, helping reduce dependence on imported components. The Indian LED lighting market is projected to reach USD 18.8 billion by 2031, at a CAGR of around 8.44% 14 .

Growth will be supported by continued infrastructure development, expansion of smart city projects, and increasing adoption of energy-efficient lighting systems. Emerging applications such as horticulture lighting and UV-based disinfection systems are also expected to create new opportunities for the sector in the coming years.

Consumer Electronics Industry

Global Scenario

Consumer electronics remain a major segment of the global electronics manufacturing ecosystem.

In 2025, the market was valued at approximately USD 870 billion. 15 Manufacturers are focusing on compact designs, improved performance and enhanced user experiences across smartphones, wearables, smart home devices, and personal computing equipment. The growing use of AI-embedded features such as voice recognition, gesture control, and predictive functionality is expanding device capabilities. During the year, the Asia Pacific accounted for around 39% 15 of global market revenue, with large manufacturing clusters in China, India, and South Korea and strong domestic demand contributing to the regions share. While in North America and Europe, market growth reflects rising consumer demand for premium, energy-efficient and connected devices. Expansion of e-commerce and digital retail channels is increasing product availability and sales, despite operational costs and occasional supply chain disruptions.

The global consumer electronics market is expected to continue expanding over the coming decade, with the market projected to reach approximately USD 1,949 billion by 2035, growing at a CAGR of around 8.4%. 15 Growth is expected from rising adoption of smart devices, expansion of IoT ecosystems, and the ongoing rollout of 5G connectivity. Online distribution channels are likely to see the fastest growth as consumers shift to digital platforms.

Indian Scenario

The sector expanded its role in the digital economy through growing domestic manufacturing and rising exports, with the market valued at USD 89.48 billion in 2025. 16 Consumer demand shifted towards premium and connected appliances during the year. Rising incomes and awareness of energy-efficient technologies boosted demand for smart TVs, 15 Precedence Research, 16 IMARC Group air conditioners, and connected home devices.

Smart home products such as speakers, security cameras, and AI-enabled appliances also saw strong adoption as households prioritised convenience, connectivity and energy management.

During the year, the distribution landscape evolved with closer integration of online and offline retail.

E-commerce grew steadily, aided by wider internet access and digital payments, while traditional retailers adopted omnichannel strategies to expand reach. Organised retail also expanded in Tier-2 and Tier-3 cities, increasing access to branded products and financing options.

The market is projected to grow to approximately USD 158.4 billion by 2034, at a CAGR of around 6.56%. 16 Domestic manufacturing is likely to expand as demand rises for AI-enabled devices, 5G-ready hardware, and connected home technologies.

Growing consumer preference for energy-efficient and smart appliances is also expected to support the sectors growth.

Automotive Lighting Industry Market Overview

Global Scenario

Modern automotive lighting plays a crucial role in vehicle safety, visibility and design. Rising vehicle production and increasing electronic content drove the global automotive lighting market to USD 43.05 billion in 2025 17 . Regulatory requirements, including mandatory Daytime Running Lights (DRLs), have led the manufacturers to integrate LED and High-Intensity Discharge (HID) technologies for better efficiency, durability and safety.

The industry is witnessing a gradual shift from conventional halogen systems to LED-based lighting, which accounted for the largest share of the market during the year due to its energy efficiency, longer lifespan, and faster response time. Ambient interior lighting is increasingly gaining popularity in the mid- and premium-segment vehicles, enhancing cabin comfort and complementing advanced driver assistance features. Regionally, the Asia Pacific region accounted for around 37.94% 17 of the global market in 2025, supported by strong vehicle production and sales in countries such as China and India.

The industry is projected to reach USD 94.16 billion by 2034, growing at a CAGR of approximately 9.11% globally. 17 Future growth will be supported by increasing adoption of adaptive lighting technologies, including matrix LED and sensor-based systems that adjust illumination in real-time to improve driver visibility and road safety. The ongoing shift towards electric and autonomous vehicles is also expected to accelerate demand for advanced and intelligent lighting systems. While original equipment manufacturers will continue to drive the majority of demand, the aftermarket segment is expected to grow as consumers upgrade older vehicles with modern LED and ambient lighting solutions.

17 Fortune Business Insights, 18 IMARC Group

Indian Scenario

Automotive lighting in India is increasingly recognised as a safety-critical system, with manufacturers adopting advanced solutions to improve visibility and vehicle design. The market reached

1.9 billion in 2025 18 . Implementation of AIS-008 and AIS-012 by the Automotive Research Association of India (ARAI) has introduced tighter photometric and beam requirements. Features such as DRLs and adaptive lighting have become increasingly standard in mid- to high-trim passenger cars and premium two-wheelers, improving road safety.

The growing adoption of EVs has further supported this demand. As EV penetration has increased across vehicle segments, particularly in two-wheelers, manufacturers have increasingly adopted LED lighting due to its lower power consumption compared with traditional technologies. Policy support, including initiatives such as the Faster Adoption and Manufacturing of Electric Vehicles (FAME) Phase II scheme and subsequent EV policy frameworks, has played a key role in shaping the sectors growth. This shift accelerates the transition from traditional halogen assemblies to advanced, energy-efficient LED and smart lighting systems. Domestic manufacturing capabilities have strengthened under the Production Linked Incentive (PLI) scheme for Automobiles and Auto Components. Supported by this scheme, suppliers have expanded local production of advanced lighting components, including LED modules, optical systems, and driver electronics. This push towards localisation has increased domestic value addition and reduced reliance on imports. The market is projected to reach approximately USD 3 billion by 2034, expanding at a CAGR of around 5.19%. 18 Future growth is expected from ADAS-compatible technologies and the gradual adoption of OLED and laser-based systems in premium vehicles. Exterior lighting will remain the largest segment, while interior ambient lighting is expected to grow faster as automakers focus on cabin experience and design.

Solar PV Equipment Manufacturing Industry

Global Scenario

In 2025, the global solar PV equipment manufacturing industry expanded as energy security, and the shift to low-carbon power became key priorities. The market was valued at USD 286.15 billion in 2025 and is expected to reach USD 304.32 billion by 2026, 19 supported by global trade in PV components, including polysilicon, wafers, cells, and modules. Asia Pacific dominated the solar photovoltaic (PV) market with a market share of 36% 19 during the year. This scale has significantly reduced production costs over the decade, making solar power one of the most cost-competitive sources of electricity globally. At the same time, rapid capacity expansion has created supply-demand imbalances. Manufacturing capacity for modules and cells now exceeds demand, while polysilicon production remains relatively constrained. The sector is also witnessing a shift towards more energy-intensive manufacturing processes, particularly in polysilicon and wafer production, which together account for a significant share of energy consumption in the value chain. The global solar power market is projected to reach USD 522.71 billion by 2035, growing at a CAGR of 6.21%. 19 As countries accelerate their clean energy transition, global solar deployment is expected to increase significantly, with annual capacity additions likely to rise substantially by the end of the decade to meet decarbonisation targets. Growing demand for solar installations is expected to increase the need for critical materials such as silver, aluminium, copper and glass. The industry is likely to place greater emphasis on recycling and circular manufacturing, with recycled materials potentially meeting a larger share of raw material demand.

Indian Scenario

In FY 2025-26, Indias solar manufacturing sector expanded rapidly, prioritising domestic renewable energy supply chains. Module manufacturing capacity under the Approved List of Models and Manufacturers (ALMM) reached around 162 GW, well above the countrys annual domestic demand of 50-55 GW. 20 This expansion also encouraged manufacturers to explore export opportunities in markets such as the United States, Europe and West Asia.

At the same time, India continued to scale up solar cell manufacturing to address supply chain gaps between modules and upstream components. As of early 2026, enlisted solar cell capacity under ALMM-II stood at about 26.79 GW 21 , with the country targeting over 40 GW 21 by mid-2026. On the deployment side, India is expected to add around 41.5 GW of new solar power capacity in FY 2025-26, including approximately 8 GW from rooftop installations. 21

Despite rapid expansion in downstream manufacturing, the industry continues to face challenges related to upstream dependency. India still relies heavily on imports for critical raw materials such as wafers and polysilicon, with nearly 90% of wafers 21 and almost the entire polysilicon requirement sourced from overseas suppliers. By September 2025 alone, imports of solar components, including cells and modules, reached approximately USD 2.9 billion. 21

Technological advancement also remained a defining trend during the year. Manufacturers are gradually transitioning from traditional PERC cell technology to more efficient solutions such as TOPCon, heterojunction (HJT), and bifacial modules, which offer higher energy conversion efficiencies and improved long-term performance.

Notes: Capacity in 2023-2024 refers to the IEA main case forecast from Renewable Energy Market Update June 2023.

Note: The 2030 data column utilises a scale break to accommodate the exponential growth projection of 6,699 GW without distorting the visual clarity of the historical annual data.

With the forthcoming requirement for domestically manufactured solar cells in clean energy projects, manufacturers are expected to accelerate investments in cell production, helping address existing supply-side constraints and improving alignment across the value chain.

Globally, under the Net Zero Emissions by 2050 (NZE) Scenario, installed solar PV capacity is projected to reach around 6,699 GW by 2030 22 , indicating sustained long-term demand for solar infrastructure. This is likely to support both domestic growth and export opportunities for

Indian manufacturers.

At the same time, policy measures such as Domestic Content Requirement (DCR) provisions are expected to encourage greater localisation of components, strengthening the competitiveness of compliant players and supporting deeper integration across the solar manufacturing ecosystem.

About the Company

At IKIO Technologies Limited (formerly IKIO Lighting Limited), we operate as an Original Design Manufacturer (ODM), providing complete lighting and electronic solutions to global brands. We design, develop, and manufacture high-quality LED products and precision electronic hardware that meet the specific needs of our customers. Over the years, we have expanded into key areas such as premium LED lighting, commercial refrigeration lighting, electronic drivers and controllers, and components for Recreational Vehicles (RVs). In FY 2024-25, we entered the consumer electronics space with hearables (TWS earbuds) and wearables (smartwatches), began supplying industrial and solar products to ESCO, and this year expanded into the automotive lighting sector. With a major focus on advancing our Noida greenfield facility to strengthen our manufacturing units across consumer electronics and automotive lighting sectors, these steps strengthen our role as a Make in India partner for advanced lighting and electronics solutions.

Our operations are supported by five integrated manufacturing facilities in Noida and Haridwar, and a team of over 1,450 employees. A dedicated R&D and product design team of 50 professionals drives innovation, while our in-house PCB assembly, SMT lines, and precision tooling ensure reliable quality, speed and scale in everything we deliver.

Business Review

In FY 2025-26, we continued our transformation into a diversified electronics manufacturer. During the year, our total operating income reached H5,953 million, reflecting 23% YoY growth. The Other Business segment, excluding the Home Lighting - ODM Business, now accounts for 71% of total revenue, up 53% YoY to H4,255 million in FY 2025-26, while consolidated EBITDA margins expanded to 13% in FY 2025-26.

We strengthened our position in high-value segments such as hearables, wearables, and automotive lighting, with automotive lighting sales initiated in February 2026 and contributing to our growth trajectory. Our Noida facilitys first phase is fully operational, while the 2 lakh sq. ft. Block II is scheduled for commercial production by Q1 FY27, with 60% allocated to hearables and wearables and 40% to automotive electronics.

Revenue from Outside India grew 53% YoY, now representing 18% of our business, driven by strong demand in the Middle East. Our acquisition of an 88% stake in Gravus Tech enhanced our B2B distribution capabilities. Further, our selection under the Production Linked Incentive (PLI) scheme for white goods is expected to enhance scale, strengthen localisation, and support future growth.

Financial Performance

The Company continued to prioritise operational efficiency, cost optimisation through backward integration, and strategic diversification. Details of the Companys financial performance are included in the Balance Sheet, Profit & Loss Account, and other financial statements forming part of this Annual Report. For a summary of key financial metrics, please refer to the Financial Summary section in the Directors Report.

Ratio Analysis Disclosure

	As at March 31, 2026		As at March 31, 2025
Ratios	Amount	Ratios	Amount	Ratios
Current Ratio	992.20	7.14	1,809.02	11.51
	138.89		157.31
Debt Equity Ratio (Refer Note i)	2.33	0.00	45.12	0.01
	4,955.08		4,765.01
Debt Service Coverage Ratio (Refer Note ii)	255.22	7.54	374.43	4.19
	33.87		89.42
Return on Equity Ratio (Refer Note iii)	151.18	0.03	236.92	0.05
	4,860.04		4,781.92
Inventory Turnover Ratio	1,253.10	3.52	1,554.60	3.63
	355.56		428.52
Trade Receivable Turnover Ratio	1,698.23	11.19	2,077.26	10.59
	151.76		196.21
Trade Payable Turnover Ratio	1,208.75	13.64	1,460.30	14.12
	88.63		103.45
Net Capital Turnover Ratio (Refer Note iv)	1,698.23	1.99	2,077.26	1.26
	853.31		1651.72
Net Profit Ratio	147.80	0.09	236.05	0.11
	1,698.23		2,077.26
Return on Capital Employed (pre tax)	226.11	0.05	345.57	0.07
	4,961.98		4,770.48
Return on Investments (Refer Note v)	226.11	0.05	345.57	0.07
	5,014.33		5,007.10

* 1 Finance Cost + Short term debt (including current maturities of long term debt) + Current Lease Liability. * 2 Net Profit After Taxes.

Notes: i. Debt Equity Ratio: In current year there was decrease in borrowing as there was repayment & closer of borrowings. ii. Debt Service Coverage Ratio: The Ratio has been improved due to repayment of borrowings in current year. iii. Return on Equity Ratio: In the current year net profit of the Company has been decreased. iv. Net Capital Turnover Ratio: The Ratio has increased due to decrease in revenue. v. Return on Investment: Due to decrease in net profit and increase in average total assets during the year.

Human Resources and Industrial Relations

We believe our employees are central to our success, bringing valuable knowledge and innovative capabilities. We aim to create an environment where every employee can contribute meaningfully, excel in their roles, and grow professionally, supported by training, development, and recognition of performance and leadership. Employees are encouraged to maintain a customer-centric approach and consistently deliver high-quality results. The Company provides challenging and fulfilling opportunities to maximise potential, ensuring employees grow alongside the organisation. Health, safety, and environmental responsibility remain top priorities.

We conduct regular audits, both internally and with external agencies, to identify gaps and implement continuous improvements, ensuring a safe and secure workplace for all.

Internal Control System and Adequacy

The Company maintains strong internal controls to ensure that all transactions are properly authorised, recorded, and reported, and that assets are protected. These controls are supported by detailed policies and procedures and are regularly reviewed by the internal auditor, who reports to both management and the Audit Committee. In addition, the Company promotes a work environment that emphasises performance, customer focus, and innovation, while upholding high standards of quality and integrity.

Cautionary Statement

Statements in the Management Discussion and Analysis regarding the Companys objectives, projections, estimates, and expectations are forward-looking and subject to risks and uncertainties. Actual results may differ materially due to factors such as global and Indian demand-supply conditions, finished goods prices, changes in government regulations and policies, tax regimes, and economic conditions in India and other countries where the

Company operates. The Company does not commit to updating these forward-looking statements.