JD Cables Ltd Management Discussions

Company Overview

JD Cables Limited is engaged in the manufacturing of wires, cables & conductors.

The Company is a leading manufacturer of a comprehensive range of wires, cables, and conductors, including LT AB Cables, LT XLPE Power Cables, LT PVC Power and Control Cables, AAC Conductor, AAAC Conductor & ACSR Conductor. We are an ISO-certified company with a strong portfolio of duly tested, high-quality products and are proud to be an approved vendor for various State Electricity Boards. Our supply network spans across multiple states, Assam, Odisha, Jharkhand, Bihar, Manipur, Tripura, Arunachal Pradesh, Punjab, Himachal Pradesh, Rajasthan and West Bengal.

These products are used across various sectors such as power generation, transmission and distribution, railways and various other industries. The company serves a diverse customer base comprising government, EPC contractors and industrial users. JD Cables operates in two manufacturing facilities located in Belgachia and Dankuni (Howrah, West Bengal). Since, December2025, JD Cables Limited has expanded its business into the infrastructure related Projects. The Company is currently engaged in a key National Highway development project under NHDP Phase V, involving the civil and electrical works for the six-laning of the Bihar-Jharkhand border (Chordaha to Gohar section) of NH-2.

With a presence of over a decade, the company has consistently aligned its product offerings with evolving industry requirements.

Sector Basics

Cables involve one or more conductors which are used for the transmission of electricity, data, or signals. Demand for cables and conductors is directly linked to the growth of the manufacturing and infrastructure sectors like power, telecommunications, railways, renewable energy, and residential and commercial real estate.

The Indian wire and cable market is estimated to grow at a 10-12% CAGR through the next 5 years, supported by sustained government infrastructure spending, real estate expansion, private capex, renewable energy integration, and electrification initiatives.

The cables industry can be broadly segmented into extra high voltage power cables (greater than 66 KV), medium voltage power cables (up to 33 KV), low voltage power cables (up to 1 KV), instrumentation and control cables, light-duty cables, fibre optic cables, copper telephone cables, elastomer rubber cables, and specialty cables.

Source: IMF

Government plans Rs 10,000 Crore scheme to boost underground power cable manufacturing. The government is considering a VGF model, which provides financial support to bridge the gap between the cost of setting up manufacturing capacity and what the market can sustain commercially, to incentivise fresh investments in underground cable production.

The scheme is designed to increase domestic manufacturing capacity, reduce Indias dependence on imported cables and accelerate the build-out of the countrys power transmission network. It would mark a significant step in the governments effort to develop a self-reliant power infrastructure supply chain.

The push for underground cable manufacturing is directly tied to Indias renewable energy ambitions. The Centre plans to use underground cable infrastructure to facilitate the evacuation of renewable power generated across various states and to enable the export of surplus green electricity to neighbouring countries. The countries being considered for cross-border underground power connectivity includes Srilanka, Singapore and Mayanmar, pointing to a regional energy integration dimension that goes beyond domestic infrastructure development.

Economic Review Global Economic Review

According to the IMF World Economic Outlook (April 2026), and 3.2 percent in 2027, below recent outcomes and well under pre-pandemic averages. This moderation reflects the impact of ongoing geopolitical tensions, particularly the conflict in the Middle East, which has led to higher energy prices and renewed inflationary pressures. Under the reference forecast (assuming a limited and short-lived conflict with a moderate rise in energy prices), global headline inflation is expected to rise modestly in 2026 before resuming its decline in 2027.

Advanced economies are expected to grow at a slower pace, with U.S. growth projected at around 2.3 percent, while growth in the euro area remains subdued at approximately 0.8-0.9 percent. Emerging market and developing economies are projected to grow at around 3.9 percent in 2026, with notable variations depending on exposure to energy price shocks and trade disruptions. Risks to the outlook are decisively tilted to the downside, including a prolonged conflict, deeper geopolitical fragmentation, renewed trade tensions, financial market volatility, and structural challenges such as high public debt and limited policy buyers. A coordinated policy approach focused on adaptability, restoring fiscal buyers, and enhancing international cooperation remains critical for supporting medium-term growth and global financial stability.

Source: IMF

Indian Economic Review

India continues to demonstrate strong economic performance and remains the worlds fastest-growing major economy amid global uncertainties. According to the latest projections, Indias real GDP growth is estimated at 7.6% for FY 2025-26, supported by robust domestic demand, resilient private consumption, accommodative monetary policy, and fiscal measures including GST rationalization.

Inflationary pressures have remained largely moderate. The Consumer Price Index (CPI) inflation stood at 3.48% in April 2026. The Reserve Bank of India (RBI) has maintained a cautious stance, keeping the policy repo rate unchanged at 5.25% as of April 2026. The RBI has projected GDP growth for FY 2026-27 at around 6.9%, with CPI inflation forecast at 4.6% for the year.

The RBIs neutral monetary policy stance aims to balance growth support with inflation management, while government focus on infrastructure development, structural reforms, and private capex continues to provide a strong foundation. Despite external headwinds from geopolitical tensions and commodity price volatility, Indias economic outlook remains positive, underpinned by strong macroeconomic buyers and resilient domestic drivers.

Source: IMF Challenges

Raw Material Challenge

The wire and cable industry continued to witness healthy demand during FY 2025-26, supported by strong government spending on infrastructure, housing, renewable energy projects, and steady export momentum. However, the sector faced persistent challenges from sharp volatility in key raw material prices, especially copper and aluminium, which significantly influenced cost structures and margin stability.

Aluminium Price Trends

Aluminium prices also rose notably, moving from approximately $2,400-2,600 per metric ton at the beginning of the fiscal year to highs near $3,300-3,600 per metric ton during the year, before selling around $3,200-3,600 per metric ton in recent months. Geopolitical factors, energy costs, and supply-side constraints contributed to these movements, affecting procurement planning across the industry.

Copper Price Trends

Copper prices exhibited high volatility during the year Starting around $9,200-9,700 per metric ton in early FY 2025 26, prices surged sharply amid supply tightness and strong industrial demand, reaching peaks above $13,000-14,000 per metric ton in early 2026, before moderating to around $12,500-13,000 per metric ton by April-May 2026. This elevated and fluctuating price environment created difficulties in cost forecasting and inventory management for cable manufacturers.

Historically, manufacturers have passed on raw material cost increases to customers through price revisions. However, the degree of successful pass-through varies based on market competition, contract terms, and customer sensitivity. Prolonged volatility can delay order executions and pressure profitability, particularly in commodity-sensitive segments. To counter these risks, companies are focusing on improved supply chain strategies, selective hedging, and better inventory management.

At JD Cables, we continue to benefit from inbuilt price variation clauses in most of our contracts, which help mitigate the impact of raw material price fluctuations and provide greater stability to margins.

Key structural drivers for the sector

The cables industry is poised for sustained and robust growth, backed by a strong capital expenditure cycle from both the government and private sectors. Government initiatives across power transmission & distribution, housing, infrastructure, digitization, and renewable energy are creating multi-year demand visibility for wires and cables. The sectors growth is further supported by rapid urbanization, smart city development, residential and commercial real estate expansion, railway modernization, data centre proliferation, and Indias aggressive shift towards renewable energy.

Here is a list of key structural drivers for the sector:

1. Increasing Electricity Demand: Indias per capita electricity consumption has risen significantly, reaching approximately 1,460 kWh in FY25, up from around 957 kWh a decade ago. This surge, coupled with rising peak demand, continues to drive substantial requirement for power cables to support expanding electrification and growing energy needs.

2. Rapid Industrialization & Urbanization: Strong industrial expansion under ‘Make in India, new manufacturing units, and accelerating urban development - including residential, commercial, and infrastructure projects — are necessitating reliable and high-capacity power cable networks.

3. Government Initiatives: Schemes such as the Revamped Distribution Sector Scheme (RDSS), Green Energy Corridors, and record infrastructure capex outlay of ^11.21 lakh crore are accelerating grid modernization, rural electrification, and system upgrades, thereby boosting demand for a wide range of power cables.

4. New End-Use Sector Requirements: Growth in EV charging infrastructure, railway electrification and the rapid rise of data centres are creating demand for specialized power, control, and optical fibre cables to support high electrical loads and digital infrastructure.

5. Renewable Energy Integration: India remains firmly committed to its target of 500 GW non-fossil fuel capacity by 2030. With renewable capacity already crossing significant milestones and strong additions continuing in solar, wind, and hybrid projects, extensive power evacuation and transmission infrastructure — including specialized solar and wind cables — is required to integrate these remote generation sources into the national grid.

6. Exports: Rising global demand for reliable power transmission and distribution solutions, particularly in the Middle East, Africa, SAARC nations, and the America, offers strong export opportunities for Indian cable manufacturers. India is increasingly positioned as a preferred supplier amid global supply chain diversification.

Companys Performance

FY 2025-26 was a year of strong operational execution and strategic progress for JD Cables Revenue from operations in FY 2025-26 grew by 45 % as compared to FY 2024-25 The Companys performance was supported by the following factors:

- Improved product mix with higher contribution from value-added products.

- Increased participation in private EPC, and renewable energy projects.

- Better working capital management and customer diversification.

- Strong execution capabilities and operational efficiencies.

- Strengthening export readiness and international market development.

The Company also received a credit rating upgrade from INFOMERICS IVR/BBB- (Stable) TO INFOMERICS IVR/BBB (Stable), reflecting its improving financial profile, operational strength and prudent financial management.

JD Cables continues to enhance profitability through a growing share of value-added and specialized products, deeper participation in high-growth sectors, and a diversified customer base across domestic markets. In line with its vision of powering the future of energy infrastructure, the Company achieved key strategic milestones during the year which has been shared below for your reference and insight.

2025 year of JD CABLES BSE SME-IPO

The year 2025 was a record-breaking but reality-check year for SME IPOs in India—strong in volume and fundraising.

JD Cables also came up with SME IPO and go Rs listed on 25^th September, 2025 in BSE SME platform. The company issued 63,15,200* equity shares of face value of Rs 10 each (Equity Shares) aggregating up to Rs 9,599.10 lakhs (Offer) which comprises of fresh issue of 55,53,600* Equity Shares of face value of Rs 10 each (Equity Shares) aggregating up to Rs 8,441.47 Lakhs (Offer) and offer for sale of 7,61,600* equity shares aggregating to Rs 1,157.63 lakhs. This offer is being made in terms of Regulation 229(2) and 253(1) of Chapter IX of the SEBI (ICDR) Regulations, 2018 as amended.

Risk Management

JD Cables Limited is engaged in the business of manufacture, buy, sell, exchange, trading or otherwise dealing in any manner whatsoever in all kinds of conductors, cables, wire and any other electrical goods. The growth and success of any business depend on the ability to identify, understand and respond to the challenges of a very dynamic market. This uncertainty generates risk, with the potential to be evaluated either as a source of opportunity or threat. By understanding and managing risk, we provide greater certainty and confidence for all our stakeholders. Accordingly, the Board of Directors of the Company at its meeting held on 11th June, 2025, approved and adopted the Policy. The risk/s inherent in our operating environment creates the need to think about, take and manage risk in an informed way.

The Company recognizes the importance of managing risk in the business to sustain growth. The purpose of the policy is to ensure that:

a. Appropriate systems are in place to identify the material risks facing the Company.

b. The potential financial impact of identified risks is ascertained.

c. Appropriate controls and strategies are adopted to manage exposure to those risks.

d. Appropriate responsibilities are delegated to control identified risks effectively.

e. Any material changes to the Companys risk profile are disclosed in accordance with the Companys continuous disclosure policy.

The Key risks currently under management by the Company in accordance with this policy are as follows:

i. Acquisition & Growth - there is a risk that the Company may not achieve its strategic objectives to grow the business through acquisitions and diversification and expansion of practice areas, alternatively such growth objectives may not realize the forecasted profits.

ii. Recruitment & Retention - there is a risk that the Company may not be able to recruit or retain suitably qualified or experienced people to achieve strategic objectives.

iii. Competition - there is a risk that the Company will not be in a position to continue to compete effectively with current or future competitors.

iv. Reputation & Intellectual property -There is a risk of unauthorized use of the Companys intellectual property.

v. Information Systems and Operational Risks - there is a risk of catastrophic information system failure or other operational failure or malfunction.

vi. Employee misconduct

vii. Governance Failure.

viii. Economic Risk, Market conditions, Liquidity and Investment Returns.

Cable Industry- 10 Year from now

The India Wires and Cables market size accounted for USD 14.8 billion in 2025 and is predicted to touch around USD 30.08 billion by 2035, growing at a CAGR of 7.35% from 2026 to 2035. The Market is driven by rapid urban growth, significant government spending on infrastructure like smart cities, railways, and highways, and increasing renewable energy goals.

The Indian wire and cable market is essential for the countrys rapid economic growth. It plays a key role in supporting urbanization, meeting ambitious green energy goals, and facilitating the nationwide deployment of 5G and data centers. This market is a crucial part of the real estate and construction industries, which contribute significantly to the national economy. Government projects aimed at building millions of homes, smart cities, and transportation systems directly increase demand. To achieve targets such as 500 GW of non-fossil fuel capacity, extensive specialized cabling is necessary to link remote solar and wind farms to the national grid.

According to the recent reports, Indias wire and cable sector is set to grow at a 12% CAGR to reach Rs 1.7 lakh crore by FY30, propelled by massive, simultaneous investments in power grids, data centres, and EVs.

""Indias cable and wire industry is at a compelling inflection point. Power, renewables, EVs, real estate and data centres are all contributing simultaneously, creating a diversified demand base that the industry has not witnessed consistently in the past,"

Indias planned infrastructure investment of about Rs 143 lakh crore through FY30 will add another large, multi-year demand pipeline for cable manufacturers.

The demand pool will widen further with Indias 500-GW renewable-energy target, an 8,327-MW datacentre pipeline backed by hyperscaler commitments, and the emerging EV charging network. Cables, which account for roughly two-thirds of the market, are better placed than wires due to longer order visibility, higher entry barriers and greater exposure to government-led infrastructure spending.

Internal Financial Control and their adequacy

The Company believes that internal control is a necessary prerequisite of Governance and that freedom should be exercised within a framework of checks and balances. Therefore, the Company has a well- established internal control framework, which is designed to continuously assess the adequacy, effectiveness and efficiency of financial and operational controls.

Periodic audit of all functions is carried out by the internal auditors thereby ensuring regulatory compliance of various applicable statutes as well as internal guidelines and policies. The management is committed to ensure an effective internal control environment, commensurate with the size and complexity of the business, which provides an assurance on compliance with internal policies, applicable laws, regulations and protection of resources and assets.

The Company policies are reviewed periodically in line with the dynamic business environment and regulatory requirements. The Board reviews adherence to internal control systems and internal audit reports. Based on the framework of internal financial controls and compliance systems established and maintained by the Company, work performed by the Internal, Statutory, Secretarial Auditors and external consultants and the reviews performed by management and the Audit Committee, Company has sound internal financial controls and are commensurate with the nature and size of the business operations and are adequate and operating effectively with no material weakness.

	For and on behalf of the Board of Directors
		JD CABLES LIMITED
	Piyush Garodia	Rajesh Jhunjhunwala
Place: Kolkata	Managing Director	Whole Time Director
Date: 14.08.2026	DIN:7194809	DIN: 10781593