Kanishk Aluminium India Ltd Management Discussions

The key issues of the Management Discussion and Analysis are given below.

Global Outlook:

The global aluminium industry outlook for FY 2027 is expected to evolve in response to several key trends and developments. Aluminium, being the second most widely used metal in the world, remains closely linked to the pace of global economic activity, infrastructure creation, energy transition and the shift towards lightweight and recyclable materials. Here is a look at what might shape the industry:

(a) Steady Global Economic Growth and Recovery in Trade:

Stable Growth Environment: Global economic growth is projected to remain broadly steady, with the International Monetary Fund estimating world output growth of about 3.0% in 2026 and 3.4% in 2027. World trade volume growth is expected to moderate to around 3.5% in 2026 from about 5.0% in 2025, before recovering to roughly 4.3% in 2027, as earlier front-loading, the drag from tariffs, and the gradual adjustment of trade linkages and production chains work through global supply chains. Continuing geopolitical conflicts, disruptions in trade routes and a high public debt burden pose challenges to the overall global economic outlook, but the underlying growth environment for FY 2027 remains constructive.

Implications for Metals Demand: Improving global growth and trade bodes well for metals demand, since aluminium consumption is closely correlated with construction activity, transportation output, electrical infrastructure spending and consumer durable production. A stable demand environment therefore supports both volumes and realisations across the aluminium value chain.

(b) Global Aluminium Market Fundamentals:

A Finely Balanced Market: World primary aluminium production in calendar year 2025 was about 73.78 million tonnes, up 1.06% over 73.01 million tonnes in 2024, the slowest pace of growth in five years, as per the International Aluminium Institute. Total global aluminium consumption, including recycled metal, is estimated at over 100 million tonnes, with secondary or recycled sources contributing more than 28% of supply. With China operating close to its self-imposed capacity ceiling and supply growth constrained in other regions, the global market is expected to remain in a modest deficit of the order of 0.2 million tonnes in calendar year 2026, which is expected to be supportive of prices.

Concentration of Capacity: China continues to be the worlds largest producer and consumer of aluminium, with primary production of about 45.02 million tonnes in 2025, constituting roughly 60% of total global output, and accounting for close to half of global consumption. Chinas output is now operating at its long-standing self-imposed ceiling of 45 million tonnes per annum, introduced to curb oversupply and emissions, and further growth from that source is expected to be limited on account of tighter energy, environmental and carbon policies. This structural cap on the worlds largest producer, together with power availability constraints elsewhere, has materially changed the supply outlook and continues to influence global pricing and trade flows.

Price Volatility and Cost Competitiveness: Building primary aluminium capacity is highly capital intensive and revenue is dependent on global aluminium prices determined at the London Metal Exchange. Aluminium, being an exchange traded commodity, has a highly volatile price which is not within the control of producers. LME aluminium averaged in the region of USD 2,500 - 2,800 per tonne through 2025, closed the year near USD 2,800 per tonne after a gain of over 17% during the year, and has ruled firmer in 2026, quoting around USD 3,200 per tonne in August 2026, an increase of approximately 25% over the preceding twelve months. Alumina and power together constitute about 75% of the cost of production. Consequently, cost competitiveness remains the single most important determinant of success in the industry, and the sharp increase in metal prices has a direct bearing on input costs for downstream converters such as extruders.

(c) Aluminium as a Strategic Metal:

Strategic Importance: Aluminium is the second most widely used metal globally, after steel and many countries consider it a strategic metal owing to its use in key sectors such as defence, aerospace, infrastructure and transport. Its unique combination of light weight, strength, corrosion resistance, conductivity, formability and recyclability makes it the “metal of choice” across a widening range of applications.

Diversified End-Use Base: The major end users of aluminium include the engineering sector (electrical appliances and power), transport (automobile engines and fabrications), construction (windows and door frames), packaging (aluminium foils and beverage cans) and consumer durables (refrigerators and washing machines). This breadth of application gives the industry a natural hedge against a slowdown in any single end-use segment.

(d) Sustainability, Recycling and the Circular Economy:

Recycling Advantage: Aluminium is almost infinitely recyclable, consumes 95% less energy and releases 95% less greenhouse gases as compared to primary aluminium, with no loss of properties or quality during the recycling process. Recycling requires only about 5% of the energy needed for the primary route, i.e., approximately 13,000 15,000 kWh for producing one tonne of aluminium. Recycling of aluminium saves about 6 kg of bauxite per kg and 14 kWh of electrical energy per kg of primary aluminium, and helps preserve about six lakh tonnes of bauxite resources every year.

Regulatory and Customer Pull: As sustainability and decarbonisation move to the centre of corporate and regulatory agendas worldwide, demand for low-carbon and recycled aluminium is expected to accelerate. Green building certifications, extended producer responsibility norms and carbon-related border measures in developed markets are likely to reward producers who can demonstrate a lower carbon footprint and higher recycled content.

(e) Global Aluminium Extrusion Market:

Market Size and Growth: World consumption of aluminium extrusions is estimated at over 31 million tonnes, of which China alone accounts for about 66%. In value terms the global aluminium extrusion market is estimated at approximately USD 110 billion in 2025 and around USD 118 billion in 2026, and is projected to grow at a compound annual growth rate of about 6-8% to reach roughly USD 150-175 billion, with volumes of the order of 43 million tonnes, by 2032. Asia-Pacific accounts for close to three-fourths of the global market. Aluminium extrusions are one of the most popular forms of aluminium products, and the extrusion process offers the highest flexibility among all manufacturing methods to produce a variety of profiles across a variety of grades of aluminium, with automotive, construction and renewable energy applications driving the increase in demand.

Widening Applications: Aluminium extrusions are widely used from very simple to high-end applications owing to their strength, flexibility, durability and sustainability, across end-user sectors such as construction, transportation, electrical, machinery and consumer durables. Apart from conventional applications, extrusions are finding their way into several new sectors as a preferred choice for lightweighting.

Competitive Landscape: The market growth stage is moderate and the pace of growth is accelerating. The market is characterised by a high level of merger and acquisition activity among leading manufacturers, while emerging players resort to long-term agreements and collaborations in a competitive environment. Growing markets are accompanied by a demand for increased quality, both in dimensional tolerance and in property specification, compelling extruders to offer more choices to customers while maintaining cost competitiveness.

(f) Transportation, Lightweighting and Electric Mobility:

Weight Reduction Imperative: Fuel efficiency and emission standards worldwide are driving automakers to reduce vehicle weight by employing lightweight non-ferrous metals. Increased demand for electric and hybrid vehicles has turned automakers focus to using lightweight materials like aluminium as a substitute for heavier steel and iron in all types of vehicles, extending into rail, metro, marine and aerospace applications.

(g) Renewable Energy and Solar Infrastructure:

Energy Transition Demand: Aluminium is the material of choice for solar module frames, mounting structures and walkways. Global solar capacity addition continues to accelerate, supported by favourable policies, improving energy efficiency and price competitiveness. As per the International Solar Alliance, achieving universal energy access would require a total investment of around USD 192 billion, comprising USD 97 billion in solar-based mini-grids, USD 18 billion in decentralised renewable energy solutions and USD 78 billion in grid extensions, all of which create sustained demand for extruded aluminium profiles.

(h) Architectural Systems, Railings, Windows and Doors:

Construction-Led Demand: The growth of the aluminium railing market is being driven by increasing demand across residential, commercial and industrial applications. Aluminium railings are lightweight, durable and corrosion resistant, making them a popular choice for a variety of applications, while rising demand for sustainable materials further supports growth. The residential segment is expected to be the largest market during the forecast period, with the commercial segment also growing at a significant rate on account of demand from office buildings, hotels and hospitals.

Demand Drivers: Key drivers include increasing construction activities across residential, commercial and industrial sectors; a preference for low-maintenance materials as compared to wood or iron which can rust, rot or require regular painting; aesthetic appeal and the ability to customise finishes, colours and styles; and rising safety regulations mandating the installation of railings in various settings. The Asia-Pacific region, characterised by rapid urbanisation and industrialisation, is a major growth driver, with China, India and Japan being the largest markets.

(i) Die Casting and Engineering Applications:

Market Drivers and Barriers: The global die casting market is largely driven by supply chain complexities in the die-casting industry, an expanding automotive market, increasing penetration of die-cast parts in industrial machinery, a growing construction sector and the employment of aluminium casts in electrical and electronics. Rising demand for aluminium die-casting parts in the electrical and electronics industry, owing to high thermal conductivity, is likely to drive growth. The Asia-Pacific region is anticipated to hold the largest market share, supported by cheaper labour and low manufacturing costs in India and China. A crunch in raw material supply, volatility in raw material prices and environmental regulations on emissions remain the major barriers to growth.

(j) Economic and Geopolitical Influences:

Global Economic Recovery: If the global economy experiences a steady recovery, it could boost construction and manufacturing spending across sectors. However, persistent inflationary pressures, elevated energy costs or economic slowdowns in key regions might temper growth.

Geopolitical Shifts: Ongoing geopolitical tensions, trade measures, anti-dumping actions and disruptions in shipping routes could continue to reshape global metal flows, with potential impacts on cross-border sourcing, freight costs and market access.

Outlook Summary:

Stable Growth with Structural Tailwinds: The global aluminium and aluminium extrusion industry is expected to experience stable growth in FY 2027, driven by infrastructure creation, the energy transition, lightweighting in transportation and an increasing focus on sustainability and recyclability. Companies that can navigate the challenges of raw material price volatility, energy costs, supply chain resilience and evolving customer specifications will be well positioned to thrive.

Overall, FY 2027 is likely to be a year of consolidation and value addition for the aluminium industry, with a clear shift in emphasis from primary metal volumes towards downstream, customised and higher value-added products such as extrusions, architectural systems and engineered profiles.

Aluminium Industry & Market Growth in India:

The aluminium supply and market growth outlook for India in FY 2027 is shaped by several key trends and opportunities across various sectors. Here is an analysis of the prospects:

(a) Indias Position in the Global Aluminium Industry:

Scale and Standing: India is the 2^nd largest producer of primary aluminium globally after China and the 3rd largest consumer, accounting for roughly 5.5% to 8% of world output. The combined primary smelting capacity of the major domestic producers is of the order of 4.3 million tonnes per annum, while domestic consumption of aluminium, including secondary metal, is estimated at about 4.5 to 5.0 million tonnes. India exports close to 2.6 million tonnes of primary metal, being roughly 60% of its primary output, and remains a net importer of downstream aluminium products and aluminium scrap, with imports of downstream products of the order of 1.5 million tonnes. The industry employs about 8 lakh people directly and indirectly, and India is among the few countries with fully integrated operations spanning mining to finished goods.

Production Trends: As per provisional data published by the Ministry of Mines, primary aluminium production in FY 2025-26 recorded a growth of 1.5% over the corresponding period of the previous year, increasing to 3.47 lakh tonnes in April 2025 from 3.42 lakh tonnes in April 2024, while bauxite production expanded by a robust 13.9% from 1.87 million tonnes to 2.13 million tonnes over the same comparison. Growth trends in aluminium and bauxite, alongside iron ore and limestone, point towards continued strong economic activity in user sectors such as energy, infrastructure, construction, automotive and machinery.

Indias Structural Advantage: India has the fifth largest coal and eighth largest bauxite proven reserves in the world, with raw material and power together accounting for about 75% of the cost of production. India is amongst the few countries with fully integrated operations from mining to finished goods. Aluminium operations are spread from the hinterlands to the cities, and the sector is supported by a large base of approximately 4,000 MSMEs, of which the downstream extrusion segment forms a significant part.

(b) Domestic Consumption Pattern and Headroom for Growth:

Consumption Mix: In India, aluminium is consumed mainly in the electrical sector (48%), followed by the automobile and transport sector (15%), construction (13%), consumer durables (7%), machinery and equipment (7%), packaging (4%) and others (6%). In the electrical sector, aluminium is used in overhead conductors and power cables employed in the generation, transmission and distribution of electricity, as well as in switchboards, coil windings and capacitors.

Low Per Capita Consumption: Per capita consumption of aluminium in India is among the lowest in the world at about 3.4 kg, as against a world average of about 11-12 kg, China at about 26-32 kg and the United States at about 18 kg. Indias consumption is therefore roughly one-third of the global average and around one-sixth of Chinas. Bridging this gap to the global average would translate into several million tonnes of additional annual demand and would make India one of the largest aluminium markets in the world. The Aluminium Vision Document 2047, released by the Ministry of Mines in July 2025, identifies this gap as the central structural opportunity for the domestic industry and sets out a roadmap for scaling up capacity, raw material security and recycling.

Contribution to Manufacturing GDP: Aluminium contributes to nearly 2% of manufacturing GDP and, with projected consumption growth, this share is expected to rise. As per estimates cited by the Ministry of Mines, domestic aluminium demand could reach about 8.5 million tonnes by FY 2030 against combined primary and secondary capacity of roughly 6.2 million tonnes at present, implying a potential shortfall of 1.6 to 2.3 million tonnes and a substantial opportunity for capacity creation. The three major domestic producers have announced alumina refining additions of about 7 million tonnes and primary smelting additions of about 3 million tonnes, entailing capital investment in excess of 64,000 crore over the next five to six years. Over the longer horizon, the Aluminium Vision Document 2047 targets a six-fold increase in aluminium production capacity and expansion of bauxite production capacity to 150 MTPA, along with a doubling of the countrys aluminium recycling rate. Aluminium has forward linkages with key sectors such as aviation, defence, automotive, electricity, construction, packaging, machinery and marine, and backward linkages with mining, chemicals, power and machinery, making it a high-multiplier industry for the economy.

(c) Indian Aluminium Extrusion Market:

Market Size and Trajectory: In India, demand for aluminium extrusions is estimated at about 7.95 lakh tonnes in 2025 and is expected to rise to approximately 8.58 lakh tonnes in 2026, a year-on-year growth of about 7.9%, which is well ahead of the growth rate of primary metal production. Industry estimates place Indias installed extrusion capacity at around 3 million tonnes per annum against production of about 1.2 to 1.3 million tonnes, implying utilisation of only 40-43% and significant headroom for volume growth as demand scales up. Demand is projected to continue compounding at a high single-digit rate over the medium term, supported by construction, renewable energy and transportation applications.

Application Mix: The building and construction sector dominates total aluminium extrusion usage in India with a share of about 61%, followed by transportation at about 15%, electrical at about 10%, machinery and equipment at about 7%, consumer durables at about 4% and other applications at about 3%. With an increasing emphasis on lightweighting, the usage of aluminium extrusions in the transportation sector is expected to expand rapidly, while renewable energy applications continue to emerge as a distinct and fast-growing end-use segment.

(d) Building, Construction and Architectural Applications:

Substitution of Traditional Materials: Aluminium fabricated items such as doors, windows, staircase handrails and supports, and railings for verandas and corridors have become a generally accepted feature in most modern buildings. The use of aluminium in business and office complexes, buildings, theatres and for decorative purposes is very common, and in residential buildings aluminium doors, windows, railings and grill-works are used extensively.

Product Advantages: Light weight, strength, corrosion resistance, durability, ease of fabrication, attractive appearance and easy maintenance make aluminium a popular material for use in modern buildings. Fabricators anodise sections to the desired colours and fabricate items as per customer requirements. These items have a good appearance and finish and the maintenance expenses are almost nil, while steel and wooden items require regular painting and polishing periodically.

Outlook for Fabricated Products: Development and construction activities being interlinked, there is good scope for aluminium fabrication units to meet the growing demand of new buildings for offices, business and shopping complexes and theatres. If the present trend is any guide, theatres, restaurants, hotels, shopping complexes, office premises and other premium buildings will progressively replace wooden materials with aluminium fabricated items, and the consumption of these items is already on the increase.

(e) Renewable Energy and Solar:

Solar Capacity Build-Out: Indias solar manufacturing base has scaled up dramatically, with cumulative module manufacturing capacity crossing 210 GW and cell manufacturing capacity reaching about 27 GW by the end of 2025, supported by the Approved List of Models and Manufacturers domestic cell mandate and strong demand from the utility-scale and rooftop segments. On the installation side, India added a record 44.61 GW of solar capacity in FY 2026, nearly double the 23.83 GW added in the previous year and well ahead of the 34 GW target, taking cumulative installed solar capacity past 150 GW and total non-fossil generation capacity beyond 300 GW, or about 60% of the 500 GW target set for 2030. Achieving that target will require sustained annual additions of the order of 50 GW. Every megawatt of solar capacity installed translates into demand for aluminium module frames, mounting structures and balance-of-system profiles.

(f) Automotive and Transportation:

Sector Significance: The automotive industry in India is one of the main pillars of the economy, with strong backward and forward linkages, and it provides direct and indirect employment to over 19 million people. As per the Society of Indian Automobile Manufacturers, the industry recorded its highest ever wholesales of 2,82,65,519 units in FY 2025-26, a growth of 10.4% over 2,56,09,399 units in FY 2024-25, with every vehicle category posting record sales for the first time since FY 2018-19. Exports rose 24% to 66,47,685 units in FY 2025-26 from 53,62,884 units in the previous year, with passenger vehicle exports up 17.5%, two-wheeler exports up 23.4%, three-wheeler exports up 50.1% and commercial vehicle exports up 17.4%. Growth was supported by GST rate rationalisation, successive repo rate reductions and rising electric vehicle adoption. Considerable progress has been made in aluminium-intensive vehicle production over the past few years, and rising volumes translate directly into demand for extruded and cast aluminium components.

(g) Electrical and Electronics:

Conductors and Electrical Hardware: The electrical sector is the largest consumer of aluminium in India, accounting for about 48% of domestic consumption. India has pioneered the replacement of copper by aluminium in power transmission and distribution, which has enhanced demand for the metal, and the continuing expansion and strengthening of the transmission and distribution network under the national grid and rural electrification programmes sustains demand for conductors, cables, busbars and electrical profiles. Extruded profiles are also used extensively in MCBs, ELCBs, UPS systems, heat sinks and electronic housings, a segment that continues to expand with the growth of domestic electronics manufacturing.

(h) Die Casting in India:

Growth Potential: India is one of the major suppliers of die cast parts in the global market and is considered an emerging hub for pressure die cast automobile components. The Indian aluminium die casting market is estimated at about USD 1.36 billion in 2025 and is projected to grow at a compound annual growth rate of around 7.6% to reach approximately USD 2.44 billion by 2033, with pressure die casting accounting for close to 84% of the market. India presently accounts for only a small share of global aluminium die casting revenues but ranks among the fastest growing markets in the Asia-Pacific region, indicating significant growth potential in the coming years.

(i) Challenges and Opportunities:

Challenges: Domestic imports of aluminium products, including scrap, are growing significantly, which is a major concern for domestic aluminium producers. In addition, the volatility of LME-linked aluminium prices, the cost and availability of power, working capital intensity and competition from the unorganised sector remain persistent challenges for downstream manufacturers.

Opportunities: Sustained infrastructure creation, the housing and real estate cycle, rapid growth in solar capacity, lightweighting in transportation, the expansion of digital and physical infrastructure into Tier-II and Tier-III cities and the shift from wood and steel to aluminium in architectural applications together offer significant headroom for growth. Companies that can offer customised profiles, consistent quality and reliable delivery are best placed to capture this demand.

Outlook Summary:

Positive Growth Prospects: The aluminium supply and market in India are poised for significant growth in FY 2027, driven by infrastructure and housing demand, the energy transition, government initiatives and the expansion of downstream manufacturing capabilities. The sector is expected to see robust demand across construction, architecture, renewable energy, electrical and transportation applications.

Strategic Focus Areas: To capitalise on these opportunities, companies should focus on product development and customisation, quality assurance, cost competitiveness, capacity utilisation and sustainability, while also addressing the requirements of emerging markets, the export market and the fast-growing premium architectural segment.

Overall, FY 2027 is expected to be a year of strong growth and value addition for the aluminium extrusion industry in India, with opportunities spanning across multiple sectors and applications.

Government Initiatives

The Government of India has launched several initiatives that directly and indirectly support the aluminium and aluminium extrusion industry, focusing on enhancing domestic manufacturing capabilities, expanding infrastructure, accelerating the energy transition and fostering innovation. Given below is an overview of the key initiatives:

(a) Make in India:

Objective: Launched in 2014, the “Make in India” initiative aims to transform India into a global manufacturing hub by encouraging both multinational and domestic companies to manufacture their products within the country.

Impact on the Aluminium Industry: The initiative has led to increased investments in domestic manufacturing of metals, engineering goods and building products, encouraging import substitution and strengthening the local downstream aluminium value chain, including extrusion, fabrication and architectural systems.

(b) Production Linked Incentive (PLI) Schemes:

Objective: The PLI schemes were introduced to boost domestic manufacturing by offering financial incentives to companies that achieve incremental production targets across identified sectors.

Impact on the Aluminium Industry: As on March 2026, the PLI schemes have attracted actual investments of over 2.40 lakh crore, generated cumulative exports of more than 15.2 lakh crore since inception and supported employment of over 14.15 lakh persons, both direct and indirect. The schemes cover sectors that are significant consumers of aluminium extrusions, with the largest investments recorded in high efficiency solar photovoltaic modules (about 64,873 crore), pharmaceuticals (about 45,158 crore), automobiles and auto components (about 44,326 crore), speciality steel (about 23,896 crore) and large scale electronics manufacturing (about 20,580 crore). The resulting capacity creation translates directly into higher demand for aluminium profiles and engineered components.

(c) National Infrastructure Pipeline:

Objective: Successive Union Budgets have sustained a high level of public capital expenditure on roads, railways, urban infrastructure, power, irrigation and logistics, with an allocation of about 12.2 lakh crore towards capital expenditure in the Union Budget for FY 2026-27, alongside targeted programmes for City Economic Regions and infrastructure development in Tier-II and Tier-III cities, and continued implementation of the PM Gati Shakti National Master Plan for integrated infrastructure planning.

Impact on the Aluminium Industry: Large-scale infrastructure creation drives demand for aluminium in facades, curtain walling, transmission and distribution networks, railway and metro coaches, and signage and lighting systems, thereby supporting volume growth for downstream manufacturers.

(d) Housing for All and Smart Cities Mission:

Objective: These programmes aim to provide affordable housing to all citizens and to develop urban centres with sustainable and modern infrastructure.

Impact on the Aluminium Industry: Housing and urban renewal programmes accelerate demand for aluminium windows, doors, railings, kitchen systems and architectural hardware, and support the ongoing substitution of wood and steel by aluminium systems in both affordable and premium construction.

(e) 100% Rural Electrification and Power Sector Expansion:

Objective: Government programmes have focused on achieving universal electrification and strengthening transmission and distribution infrastructure across the country.

Impact on the Aluminium Industry: Since the electrical sector accounts for about 48% of aluminium consumption in India, network expansion and strengthening directly increases demand for conductors, cables, busbars and electrical profiles.

(f) Renewable Energy and Solar Manufacturing Support:

Objective: The Government has committed to achieving 500 GW of non-fossil electricity generation capacity by 2030 and has taken several measures to promote domestic solar manufacturing, including the Approved List of Models and Manufacturers framework extending the domestic content requirement to solar cells, basic customs duty of 20% on imported solar cells and modules together with the applicable Agriculture Infrastructure and Development Cess and Social Welfare Surcharge, the removal of import duties on solar glass inputs and critical minerals processing equipment in the Union Budget for FY 2026-27, and the development of dedicated evacuation corridors through the Green Energy Corridor programme.

Impact on the Aluminium Industry: The scaling up of domestic solar manufacturing and installation creates sustained demand for solar module frames, mounting structures, solar walkways and project solutions, which are core aluminium extrusion applications.

(g) PM E-DRIVE and Electric Mobility:

Objective: The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme, with an outlay of 10,900 crore, was launched in place of the erstwhile Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme to accelerate the adoption of electric vehicles in India and to build out public charging infrastructure.

Impact on the Aluminium Industry: The shift to electric mobility increases the aluminium intensity per vehicle, as manufacturers use aluminium to offset battery weight in body structures, battery enclosures, heat sinks and thermal management systems.

(h) Atmanirbhar Bharat (Self-Reliant India):

Objective: Launched in 2020, Atmanirbhar Bharat is a broader economic strategy to make India self-reliant by reducing dependency on imports and promoting domestic industries.

Impact on the Aluminium Industry: The initiative supports the aluminium industry by encouraging domestic value addition and import substitution across the metals value chain, with a corresponding emphasis on building downstream capacity in extrusions, rolled products and fabricated systems so that a greater share of value addition is retained within the country.

(i) Mineral Exploration and Bauxite Resource Development:

Objective: Through the National Mineral Exploration Trust and allied programmes, the Government continues to fund regional and detailed mineral exploration, including non-ferrous minerals, to expand the countrys resource base.

Impact on the Aluminium Industry: Indias rich bauxite mineral base renders a competitive edge to the industry as compared to its counterparts globally, and continued exploration supports long-term raw material security and cost competitiveness for the entire value chain.

(j) Skill Development Initiatives:

Objective: Various government programmes, including Skill India and the National Skill Development Mission, aim to enhance the skill sets of the manufacturing workforce.

Impact on the Aluminium Industry: A more skilled workforce supports the growth of the aluminium extrusion industry by enabling the production of higher-quality products, improving process yields and fostering innovation and competitiveness in the global market.

These government initiatives collectively support the growth and development of the aluminium industry in India by promoting manufacturing, expanding infrastructure, accelerating the energy transition and fostering innovation across sectors. They aim to position

India as a leading player in the global aluminium market while ensuring sustainable and inclusive growth.

Road Ahead

The aluminium and aluminium extrusion industry, both globally and in India, is entering a transformative phase. Over the next five years, growth will be shaped by:

Sustained infrastructure, housing and commercial construction activity driving demand for extruded and architectural aluminium products.

Accelerating substitution of wood, steel and other traditional materials by aluminium in doors, windows, facades and railings.

Rapid scale-up of solar and renewable energy capacity, generating demand for solar profiles and mounting structures.

Lightweighting across automotive, electric mobility, railways, metro and aerospace applications.

Increasing emphasis on recycling, low-carbon aluminium and circular economy business models.

Continued government support for domestic manufacturing, infrastructure creation and the energy transition.

Rising customer expectations on dimensional tolerance, surface finish and delivery reliability, favouring organised and quality-certified manufacturers.

Overall, FY 2027 is expected to mark a pivotal year of growth, consolidation and value addition. Companies that successfully align with these industry trends, sustainability goals and evolving customer demands will not only enhance shareholder value but also secure a resilient growth trajectory over the next five years.

Our Business:

The Company specializes in manufacturing a comprehensive range of aluminium extrusion products, including solid and hollow section profiles, solar profiles, railings, heatsinks and sliding / fixed windows and doors profiles. Our products serve a diverse array of industries, such as electronics, automotive, mechanical, solar, furniture, transport, electrical and architecture. The dies used in manufacturing these extrusion profiles are custom-made and owned by the Company, and we possess a large variety of dies which we continuously expand based on customer designs and specifications to meet diverse industrial needs.

The Companys manufacturing unit is located at Boranada, Jodhpur, Rajasthan and is supported by an in-house die shop and a well-equipped quality control laboratory that conducts pre- and post-production checks. The Companys adherence to quality processes is reflected in its ISO 9001:2015 certification. Under its brand ‘Baari by Kanishk, the Company offers aluminium system doors and windows, including sliding doors, casement series, slide-and-fold doors, lift-and-slide doors and fixed panels, supported by an experience centre at Jodhpur and a network of exclusive fabricator arrangements across several states.

During the year under review, the Company recorded total income of 7,886.91 Lakhs as compared to 6,015.24 Lakhs during the financial year ended March 31, 2025 (“Previous Financial Year”), registering a growth of approximately 31.11%. This growth was driven by an expansion in the scale of operations, deeper penetration of existing customer accounts and the scaling up of newer product verticals.

Total expenses for the year stood at 7,330.26 Lakhs as against 5,595.09 Lakhs in the previous financial year. The major component of expenditure continued to be the cost of materials consumed, which amounted to 6,411.36 Lakhs during the year as compared to 5,465.15 Lakhs in the previous year, in line with the increase in the scale of operations. Notably, the increase in material cost was more moderate than the growth in income, contributing to improved margins.

On the profitability front, the Company reported a profit before tax of 556.65 Lakhs as against 420.15 Lakhs in the previous year, and a profit after tax of 411.93 Lakhs as compared to 304.45 Lakhs in the previous year, registering a growth of approximately 35.31%. The profit after tax grew at a faster pace than total income, reflecting improved operational efficiency and better cost absorption during the year under review. Earnings per equity share (basic and diluted) for the year stood at 4.10 as against 3.23 in the previous year.

During the year under review, the Company successfully completed its Initial Public Offering comprising a fresh issue of 40,00,000 equity shares of face value of 10 each at an issue price of 73 per equity share, aggregating to 2,920.00 Lakhs, and the equity shares of the Company were listed and commenced trading on the SME Platform of BSE Limited on February 04, 2026. The net proceeds of the Issue are being utilised towards the objects stated in the Prospectus, namely repayment / prepayment of certain borrowings, branding and promotion of the brand ‘Baari by Kanishk and general corporate purposes. The listing represents a significant milestone in the Companys growth journey and is expected to further enhance the Companys visibility, credibility and access to the capital markets.

The overall performance of the Company during the year under review remained satisfactory, with growth in revenue and profitability reflecting an improvement in the scale of operations. The management remains focused on strengthening the Companys manufacturing capabilities, improving operational efficiencies, expanding its product portfolio and exploring opportunities for sustainable growth in the aluminium products segment.

Opportunities for our business:

Growing demand for premium, energy-efficient aluminium door and window systems, addressed through the ‘Baari by Kanishk brand.

Sustained infrastructure, housing, commercial and institutional construction activity across India.

Expansion of solar and renewable energy capacity, driving demand for solar profiles and mounting solutions.

Lightweighting trends across automotive, electric mobility, railways and metro systems.

Expansion of export markets, leveraging existing product quality, design capability and customer relationships.

Adoption of automation in production and packaging to improve operational efficiency and scalability.

Partnerships with developers, architects, interior designers and fabricators to widen market reach.

Extension of the exclusive fabricator network into newer states and geographies.

Ability to offer customised profiles through an in-house die shop and a continuously expanding die bank.

Threats:

Volatility in aluminium prices, which are linked to international benchmarks and are outside the control of manufacturers, affecting input costs and margins.

Intense competition from established domestic and international manufacturers as well as from the unorganised segment.

Growing imports of aluminium products, including scrap, into the domestic market.

Absence of long-term supply contracts with raw material suppliers, exposing the Company to spot market fluctuations.

Dependence on third-party service providers for surface treatment processes such as anodising, polishing and powder coating.

Concentration of revenue in certain geographies and customer accounts.

Rising energy, freight and compliance costs.

Evolving environmental, safety and regulatory requirements, which may necessitate additional investment.

Macroeconomic uncertainty and cyclicality in the construction and real estate sectors.

Segment-wise or Product-wise Performance:

The Company is principally engaged in the business of manufacturing and sale of aluminium extrusion products and, accordingly, operates in a single reportable business segment.

The Companys products are supplied across a range of end-use applications, including windows and door solutions under the ‘Baari by Kanishk brand, construction and facade solutions, architectural products such as window sections, railings, handles and kitchen profiles, renewable energy profiles for solar panels and solar structures, electronics profiles, automobile components, hardware items and profiles for medical equipment.

During the year under review, the Company continued to strengthen its market position by enhancing customer engagement, expanding its die bank and product range, improving capacity utilisation and improving operational efficiencies.

In line with its strategy of business diversification, the Company further strengthened its presence in the aluminium systems windows and doors segment and in solar and renewable energy applications, thereby broadening its product portfolio and reducing dependence on a limited range of applications. The diversification initiative is expected to provide sustainable growth opportunities and improve business resilience over the medium to long term.

The Company services both domestic and export markets and continues to evaluate opportunities in complementary product offerings that align with its business objectives and customer requirements.

Outlook:

The outlook for the aluminium extrusion industry remains positive, supported by sustained infrastructure and housing demand, the transition to renewable energy, lightweighting across transportation, and the increasing preference for durable, recyclable and low-maintenance building materials.

Over the medium to long term (FY 2027 - FY 2031), the Company has charted a growth roadmap aimed at building a scalable, diversified and resilient business model. The Company expects sustained demand across key segments including building and construction, architecture and interiors, renewable energy, electrical and electronics, automotive and transportation, and industrial engineering.

The key elements of this outlook are:

Revenue Growth: Sustained topline growth driven by deeper penetration of existing markets, expansion of the customer base and the scaling up of newer product verticals.

Capacity and Capability Enhancement: Improving capacity utilisation, strengthening manufacturing capabilities and expanding the die bank to widen the range of profiles offered.

Brand Building and Diversification: Continued investment in the ‘Baari by Kanishk brand and expansion of the exclusive fabricator network to build a recognised presence in the aluminium systems windows and doors market.

Operational Efficiency: Leveraging technology, process improvements and economies of scale to optimise costs, improve yields and enhance profitability.

Market Expansion: Widening the domestic geographic footprint and selectively growing the export business.

Talent and Infrastructure: Ongoing investments in people, systems and facilities to strengthen capabilities and enhance customer delivery.

Shareholder Value Creation: A balanced focus on growth and profitability to deliver consistent returns, backed by a resilient business model.

The management remains confident that these initiatives will enable the Company to strengthen its competitive position and create sustainable value for all stakeholders over the next five years.

The management further believes that the Companys diversified product portfolio, in-house manufacturing and die-making capabilities, experienced leadership team and customer-focused approach will support long-term sustainable growth.

Risk Management:

The Company acknowledges the inherent risks in its business operations and is in the process of developing a system to identify, minimize and manage these risks, which shall be reviewed at regular intervals. The primary goal of risk management is to recognize, supervise and undertake preventative steps with reference to events that may create risks for the business. At present, the management has identified the following key risks:

Securing critical resources, including capital and human talent.

Ensuring cost competitiveness.

Creating product differentiation and a strong value proposition.

Maintaining and enhancing customer service standards.

Introducing innovative marketing and branding initiatives, particularly in digital media.

Internal control systems and their adequacy:

The Company has duly established and maintained its internal controls and procedures for financial reporting and has evaluated the effectiveness of its internal control systems. The internal control systems are commensurate with the size, scale and complexity of its operations, and are monitored continuously and updated to ensure that assets are safeguarded, established regulations are complied with and pending issues are promptly addressed.

The Internal Auditors monitor the efficiency and effectiveness of the internal control systems in the Company. The reports presented by the Internal Auditors are reviewed by the Audit Committee on a routine basis. The Committee takes note of the audit observations and corrective actions taken thereon, and maintains a constant dialogue with the statutory and internal auditors to ensure that the internal control systems are operating effectively.

Material Developments in Human Resources / Industrial Relations Front Including Number of People Employed

Employee wellbeing and the building of a strong workplace culture continued to be focus areas for the financial year 2025-26. The Company believes that its employees are key to the success of its business and that its manpower is a prudent mix of experienced and young personnel, which gives the Company the dual advantage of stability and growth. The Company adopted sound people practices that enabled it to attract and retain talent in an increasingly competitive market, and to foster a work culture that is committed to providing employees with the opportunity to realize their potential.

As on March 31, 2026, the Company had 44 employees. Further, below is the bifurcation of the employees:

No. of on-roll employees: 44

Out of which, male employees were 37 and female employees were 07.

The Human Resource team undertook focused initiatives to launch employee-centric welfare programs and actively engaged with business leaders to address workplace concerns and future talent needs. Learning and development remains a key pillar of the Companys people strategy, enabling employees to meet job challenges effectively while staying aligned with the Companys business objectives. The Company also places emphasis on workplace safety and on providing structured on-the-job training to its shop floor personnel. Industrial relations during the year under review remained cordial.

Details of significant ratios:

Details of the ratios and the changes therein are provided in Note 33 of the financial statements of the Company for the financial year ended March 31, 2026.

Significant Changes in the return on net-worth:

The details of the return on net-worth are as follows:

Particulars	FY 2026	FY 2025	% of variance
Return on Net-Worth (%)	9.06%	18.36%	-50.65%

The change in the return on net-worth during the financial year ended March 31, 2026 is primarily on account of the increase in the net-worth of the Company pursuant to the fresh issue of equity shares under the Initial Public Offering completed during the year under review.

Cautionary Statement:

The statements made in this section describe the Companys objectives, projections, expectation and estimations which may be ‘forward looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied, depending upon economic conditions, government policies, aluminium and other commodity prices, demand and supply conditions and other incidental factors.

By the order of the Board of Directors

For Kanishk Aluminium India Limited (formerly known as Kanishk Aluminium India Private Limited)

Sd/-

Parmanand Agarwal

Chairman cum Managing Director

DIN: 08295200

Place: Jodhpur

Date: August 27, 2026