Jigar Cables Ltd Management Discussions

OVERVIEW OF THE INDUSTRY STRUCTURE AND OUTLOOK

JIGAR CABLES LIMITED is engaged in the manufacturing and dealing in electric wires and cables under the SIGMA brand. The Company has been associated with the electric wires and cables industry for more than two decades and is committed to maintaining high standards of quality, reliability and customer satisfaction. The Company is an ISO 9001:2015 compliant Company and follows established quality standards throughout its manufacturing processes.

Quality remains an integral part of the Companys manufacturing philosophy. The Company places continuous emphasis on quality control, beginning with the selection and use of raw materials and continuing through various stages of manufacturing, testing and final dispatch. The Companys manufacturing facilities are equipped with modern plant and machinery and testing facilities to ensure that its products meet the requisite quality and safety standards. Testing is carried out at various stages of the manufacturing process to identify and rectify quality-related issues at an early stage, followed by final testing before dispatch. Customer satisfaction continues to remain one of the key priorities of the Company.

During the financial year 2025 26, the Company further strengthened and diversified its product portfolio by commencing production of Medium Voltage Covered Conductors (MVCC) and High Tension (HT) Cables, thereby expanding its presence into higher-value and infrastructure-oriented cable products. The commencement of production of these products represents an important step in the Companys strategy to broaden its product offerings and cater to the growing requirements of the power transmission and distribution and infrastructure sectors.

The Company also has a Wholly Owned Subsidiary, Jigar Polymers Limited, engaged in the manufacturing of PVC and XLPE compounds. The backward integration initiative is expected to support operational efficiency and provide greater control over the availability, quality and consistency of key raw materials required for the Companys products.

The Indian power and infrastructure sectors continue to present significant opportunities for the wires and cables industry, supported by investments in power transmission and distribution networks, renewable energy projects, industrial development, urbanisation and infrastructure creation. The Company remains focused on leveraging these opportunities through product diversification, manufacturing capability enhancement, operational efficiency and continued focus on quality.

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Indian wires and cables industry continues to benefit from structural growth drivers such as expansion of power transmission and distribution networks, increasing investments in renewable energy, industrial development, urban infrastructure and increasing electrification. The growing requirement for reliable power infrastructure is expected to support demand for a broad range of wires and cable products.

During the year under review, the Company took an important step towards expanding its product portfolio by commencing production of Medium Voltage Covered Conductors (MVCC) and High Tension (HT) Cables. These products cater to the requirements of power transmission and distribution and infrastructure projects and provide the Company with an opportunity to participate in a wider range of applications and projects.

The Company continues to focus on improving its manufacturing capabilities, quality standards and operational efficiencies. The commencement of production of MVCC and HT Cables is expected to strengthen the Companys product mix and support its long-term growth strategy.

The Company also continues to explore opportunities for expanding its market reach and strengthening customer relationships. With its established presence in the wires and cables industry, expanding product portfolio and focus on quality, the Company remains well positioned to participate in the growth opportunities arising in the power and infrastructure sectors.

STRATEGY GOING AHEAD

Going forward, the Company intends to focus on strengthening its manufacturing operations, improving operational efficiency and maintaining consistent product quality. With the commencement of production of MVCC and HT Cables during FY 2025 26, the Company aims to further diversify its product portfolio and expand its presence in the power transmission, distribution and infrastructure segments.

The Company will continue to focus on providing quality products at competitive prices, strengthening customer relationships and expanding its market reach. The Company also intends to leverage the capabilities of its Wholly Owned Subsidiary, Jigar Polymers Limited, to support backward integration and improve the availability and consistency of key raw materials.

The Company remains committed to sustainable growth through product diversification, capacity utilisation, operational efficiency, prudent cost management and continuous improvement in quality and customer service.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the financial year 2025 26, the Company continued to focus on strengthening its operational capabilities and expanding its product portfolio. The commencement of production of Medium Voltage Covered Conductors (MVCC) and High Tension (HT) Cables during the year represents a significant operational development and is expected to provide the Company with opportunities to cater to a broader customer base and participate in higher-value power and infrastructure projects.

On a standalone basis, the Company recorded Revenue from Operations of Rs. 5,666.29 lakhs during FY 2025 26 as compared to Rs. 10,314.70 lakhs in FY 2024 25. Total Revenue stood at Rs. 5,687.68 lakhs as compared to Rs. 10,326.70 lakhs in the previous financial year.

The Company recorded a Profit Before Tax of Rs. 232.43 lakhs during FY 2025 26 as compared to Rs. 238.91 lakhs in FY 2024 25. Profit After Tax stood at Rs. 174.52 lakhs as compared to Rs. 175.08 lakhs in the previous financial year.

On a consolidated basis, the Group recorded Revenue from Operations of Rs. 5,795.18 lakhs during FY 2025 26 as compared to Rs. 10,510.81 lakhs in FY 2024 25. Total Revenue stood at Rs. 5,818.98 lakhs as compared to Rs. 10,522.21 lakhs in the previous financial year.

The consolidated Profit Before Tax stood at Rs. 239.04 lakhs, as compared to Rs. 248.54 lakhs in the previous financial year, while the Profit After Tax stood at Rs. 179.98 lakhs, as compared to Rs. 182.18 lakhs in FY 2024 25.

Despite the decline in revenue during the year, the Company maintained profitability at broadly comparable levels. The Company remains focused on improving operational efficiency, strengthening its product mix and increasing utilisation of its expanded manufacturing capabilities. The commencement of production of MVCC and HT Cables is expected to contribute to the Companys future growth and diversification.

INTERNAL CONTROL SYSTEMS:

The Company has an adequate internal control system commensurate with the nature, size and complexity of its business and operations. The internal financial controls with reference to the Financial Statements are designed to provide reasonable assurance regarding the reliability of financial reporting, safeguarding of assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records and timely preparation of reliable financial information.

The Companys internal control framework also provides for appropriate authorisation, recording and reporting of transactions and compliance with applicable policies, procedures and statutory requirements. The internal control systems are reviewed periodically and strengthened, wherever considered necessary, in line with changes in the business environment and regulatory requirements.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT:

The Company recognises that its employees are an important asset and a key contributor to its business performance. The Company remains committed to providing a conducive working environment and appropriate opportunities for employee development and skill enhancement.

The Company encourages continuous learning and development to enable its employees to adapt to technological advancements, evolving industry requirements and changes in the business environment. During the year under review, the industrial relations remained cordial and the Company continued to maintain a positive and professional work environment.

SAFETY AND ENVIRONMENT COMPLIANCE:

The Company places due emphasis on safety, quality and environmental responsibility across its manufacturing operations. The Company continuously seeks to improve safety standards and operational reliability at its manufacturing facilities.

The Company undertakes appropriate measures to ensure compliance with applicable environmental, health and safety laws and regulations. Efforts are also made to minimise operational risks and promote safe working practices among employees and other personnel associated with the Companys operations.

STATUTORY COMPLIANCE:

The Board of Directors oversees the Companys compliance framework and ensures that adequate systems and processes are in place for compliance with applicable laws, rules and regulations.

The Company Secretary and Compliance Officer, along with the concerned functional and operational teams, monitor compliance with the applicable provisions of the Companies Act, 2013, SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, SEBI (Prohibition of Insider Trading) Regulations, 2015, and other applicable statutory and regulatory requirements.

The Company has established appropriate mechanisms for monitoring statutory and regulatory compliances and strives to ensure timely compliance with the applicable provisions. The Board is apprised of significant compliance matters from time to time and appropriate corrective measures are taken, wherever required.

KEY FINANCIAL RATIOS

Ratio	FY 2025-26	FY 2024-25	Change	Explanation for change in the ratio by more than 25% as compared to the previous year
Debtors Turnover Ratio	9.03	11.93	-24.02 %	Not Applicable
Inventory Turnover Ratio	4.95	11.32	-56.29 %	The ratio decreased due to decline in total revenue
Debt Service Coverage Ratio	8.89	7.06	25.89 %	The ratio has improved owing the higher net profits earned during the year leading to better cover for debt services
Current Ratio	2.86	6.49	-56.00 %	The current ratio declined during the year primarily due to a substantial increase in current liabilities.
Debt Equity Ratio	0.40	0.11	251.77 %	The Debt-Equity Ratio increased during the year due to higher borrowings relative to the growth in shareholders equity.
Operating Profit Margin%	5.76	4.24	35.85 %	Improved on account of disciplined operational cost control and lower material consumption relative to revenue.
Net Profit Margin	3.08	1.70	81.45%	Increased due to stable absolute net profit preserved by a sharp drop in finance costs despite lower revenue.
Return on capital employed %	6.56	16.77	-60.87 %	The ratio decreased due to increase in Capital employed during the year.
Return on Net Worth	5.84	8.84	- 31.13 %	Decreased due to the dilution effect from an enlarged equity and reserve base against unchanged net profit after tax.

CAUTIONARY STATEMENT:

Statements in this Management Discussion and Analysis describing the Companys objectives, expectations, projections, estimates and future outlook may constitute forward-looking statements within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed or implied due to various factors, including changes in economic conditions, industry trends, competition, raw material prices, regulatory changes, technological developments, demand conditions and other risks and uncertainties associated with the Companys business.

The Company assumes no responsibility for publicly updating or revising any forward-looking statements based on subsequent developments, events or circumstances, except as may be required under applicable laws and regulations.

DECLARATION REGARDING COMPLIANCE BY BOARD MEMBERS AND SENIOR MANAGEMENT PERSONNEL WITH THE COMPANYS CODE OF CONDUCT:

As provided under Schedule-V of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board of Directors and the Senior Management Personnel have confirmed compliance with the Code of Conduct and Ethics for the financial year ended March 31, 2026.

For and on Behalf of the Board
For, JIGAR CABLES LIMITED

Sd/-
Sangitaben N. Vaghasiya
Chairperson & Managing Director
[DIN: 06910845]

Date: August 24, 2026,
Place: Gondal