Kavveri Telecom Products Ltd Management Discussions

1. Industry Overview, its Structure and Developments:

Overview: The global RF and wireless communication industry continues to play a pivotal role in enabling connectivity across sectors such as defence and aerospace, industrial automation, critical infrastructure, and public communications. The growing demand for reliable, high-speed, and secure data transmission has led to increased adoption of advanced antenna systems, RF products, and integrated wireless solutions.

Structure: The industry is broadly segmented into equipment manufacturers, component suppliers, and system integrators. While large multinational corporations dominate the market for standardized equipment, there is a rising demand for specialized and custom-designed RF solutions, particularly in defence, transport, and utility sectors. Regional manufacturers and niche technology firms are increasingly filling this gap by offering cost-effective, high- performance alternatives tailored to specific applications.

Key Developments: Recent years have seen a surge in investment in wireless infrastructure, private networks, and defence modernization programs globally. Technologies such as 5G, IoT, fixed wireless access (FWA), and counter-UAS systems are reshaping the landscape, pushing the need for multiband, compact, and ruggedized RF components. Governments and enterprises alike are prioritizing local sourcing and secure supply chains, creating strong opportunities for indigenous manufacturers. The convergence of telecom and defence technologies is also driving cross-sector innovation and hybrid communication platforms.

2. Outlook:

Kavveri Defence & Wireless Technologies Limited ("Kavveri") is well-positioned to capitalize on the growing global demand for advanced RF communication systems. With a strong foundation in engineering, indigenous manufacturing capabilities, and a diverse product portfolio, the company is poised to expand its presence across key verticals such as defence and aerospace, industrial wireless, critical infrastructure, and emerging wireless technologies.

Our North American subsidiaries provide direct access to one of the worlds most lucrative and quality-driven RF markets, enabling us to serve major OEMs, utilities, and defence integrators with shorter lead times, localized support, and region-specific compliance. This footprint strengthens our global competitiveness and opens new avenues for long-term growth in export- oriented revenues.

As the global landscape continues to shift toward secure, localized, and high-performance communication solutions, Kavveri remains focused on R&D investment, strategic partnerships, and scalable operations to solidify its role as a trusted provider of next-generation wireless infrastructure.

3. Operational and Financial Performance:

Details of operational and financial performance of the Company are given as under:

Note:

1. *The previous period figures have been regrouped and/or reclassified wherever necessary to confirm with the current period presentation in compliance with Ind AS requirement.

2. The financial ratios have been disclosed in the note no. 52 to standalone financials of this annual report.

4. Opportunities and Threats:

Opportunities:

• Rising demand for secure and reliable wireless communication solutions across multiple sectors.

• Increasing adoption of advanced RF technologies in both public and private infrastructure projects.

• Growing emphasis on localized manufacturing and supply chain diversification.

• Expanding global interest in specialized and application-specific RF components and Antennas.

• Opportunities for strategic partnerships and market expansion in high-growth regions. Threats:

• Prolonged supply chain disruptions and input cost fluctuations.

• Evolving regulatory and compliance landscapes across different geographies.

• Intensifying competition from both established global players and emerging regional firms.

• Rapid technological shifts requiring constant innovation and adaptation.

• Geopolitical uncertainties that may affect defence and export-oriented businesses.

5. Internal Control Systems and their Adequacy:

The Company has in place adequate internal financial controls with reference to financial statements. The Board and its committees provide oversight to ensure the adequacy and effectiveness of the internal control framework.

6. Material Developments in Human Resources / Industrial Relations Front:

The Company recognizes its human capital as a critical asset and is committed to fostering a conducive work environment that promotes growth, innovation, and employee well-being.

• Talent Acquisition & Development: The Company continues to invest in attracting and retaining top talent, particularly in specialized RF engineering, R&D, and project management roles. Training and development programs are regularly conducted to enhance employee skills and capabilities, aligning with technological advancements.

• Industrial Relations: Industrial relations remained cordial and harmonious throughout the period. The Company maintains open communication channels with its employees, fostering a collaborative and productive work environment.

• Health and Safety: High priority is accorded to employee health and safety, with adherence to all relevant regulations and implementation of best practices in the workplace.

7. Cautionary Statement: Statements in this report describing the Companys objectives, projections, estimates, and expectations may be "forward-looking statements" statements within the meaning of applicable securities laws and regulations based on certain assumptions, it requires the Company to make assumptions and are subject to inherent risks and uncertainties. Actual results may differ materially due to changes in Government regulations, tax laws and other statutes and other incidental factors. Readers are cautioned not to place undue reliance on forward-looking statements.