KEI Industries Ltd Management Discussions

Global Economy

The global economy demonstrated resilience throughout 2025 in the face of shifting trade policies and divergent regional performances. Technology investments, particularly in artificial intelligence and related sectors, provided a counterbalance to the headwinds from tariffs and elevated policy uncertainty. Global headline inflation stabilized at 4.1% as annual rates remained consistent across regions. This performance was aided by several economies reporting inflation figures lower than market expectations.

The global geopolitical environment continues to remain uncertain, with rising tensions in West Asia emerging as a major factor affecting global trade, energy markets, and supply chains. At the same time, the ongoing Russia-Ukraine conflict continues to influence crude oil prices, commodity markets, and global logistics to some extent. The recent escalation in geopolitical instability across West Asia has added further pressure on supply chains and input costs, while also contributing to inflationary concerns and volatility across international markets. These developments are indirectly affecting multiple industries through higher raw material costs, delays in shipments, and uncertainty relating to the availability of critical materials and services.

Global output growth achieved 3.5% for the year, aligning closely with earlier estimates. This outcome masked considerable variation across regions. Advanced economies expanded by 1.9%, with the United States recording 2.1% growth, supported by technology outlays and fiscal measures. The euro area achieved 1.4%, while Japan managed 1.1%. Emerging market and developing economies posted stronger results at 4.5%, led by China at 5.0% and India at 7.7%.

Trade tensions moderated through key developments.

A truce between the United States and China reduced bilateral tariff rates until November 2026 and suspended export controls on semiconductors and rare earth minerals. The United States also eliminated tariffs on select agricultural products applicable to all countries, maintainingion with its effective tariff rate near prior levels. Policy uncertainty eased from the October 2025 peaks, yet remained above levels a year earlier. Financial conditions remained broadly accommodative, though sovereign yields showed volatility.

High-growth technology stocks, led by the prominent group of seven major firms known as the Magnificent 7, delivered financial returns that outperformed the average performance of the broader stock market.

Global trade volumes stayed firm as healthy technology exports from Asian markets balanced the slowdown other sectors. Central banks managed careful interest rate adjustments. While the United States and United Kingdom began gradual rate cuts, the euro area kept its policy steady, and Japan applied small rate increases. These moves maintained favorable financial conditions despite ongoing risks regarding trade and global politics.

Outlook

The global economy is expected to remain on a stable growth path over the medium term despite persistent geopolitical and macroeconomic challenges. Global GDP is projected to expand by 3.0% in 2026 and improve to

3.4% in 2027. This projection reflects a modest upward revision from earlier estimates, as technology investments

(AI) and related fieldscontinue in artificial to offset trade policy headwinds. Fiscal stimulus in key advanced economies, alongside accommodative financial conditions, supports this trajectory, though risks from policy uncertainty and geopolitical tensions persist.

Advanced economies face a moderate expansion of 1.7% in 2026, easing to 1.8% in 2027. The United States leads with 2.3% growth, driven by fiscal measures including tax incentives under the One Big Beautiful Bill Act and a rebound from the 2025 federal government shutdown. The euro area dips to 0.9% amid structural challenges and limited technology investment gains, while Japan moderates to 0.6%followingfiscalsupport from its new government.

Emerging market and developing economies maintain momentum at 3.8% through 2026 and increase to 4.5% in 2027. China anticipates 4.6% growth in 2026, aided by stimulus and lower US tariffs from the recent trade truce, before easing to 4.1% as domestic headwinds re-emerge. India maintains its upward growth trajectory.

Headline inflation is projected to rise at 4.7% in 2026 and 3.9% in 2027, with advanced economies nearing targets more slowly in the United States. Policy rates decline gradually in the United States and the United Kingdom, remain steady in the euro area, and rise incrementally in Japan. World trade growth slows to 3.5% in 2026 amid tariff adjustments, yet technology exports continue to support growth.

Global demand for wires and cables continued to remain favorable, supported by increasing investments in power transmission infrastructure, renewable energy integration, urbanization and digital infrastructure development across major economies. The accelerating energy transition is driving substantial investments in grid modernization and expansion, as countries strengthen transmission networks to accommodate rising renewable energy capacities. In addition, growing investments in data centers, industrial automation, electric vehicle ecosystems and urban infrastructure projects are increasing demand for specialized cables and electrical solutions. These structural trends are expected to support sustained growth in the global wires and cables industry over the medium to long term and create opportunities for manufacturers with diversified product portfolios and strong execution capabilities.

(Source: World Economic Outlook (IMF), WEO (IMF)-April, WEO (IMF)- July)

Indian Economy

The Indian economy exhibited resilience in FY 2025-26 amid global trade uncertainties and market fluctuations. Provisional Estimates indicate real GDP growth of 7.7% alongside Gross Value Added at 7.9%. These underscore the strength of a domestic demand-led growth trajectory. Robust agricultural performance bolstered rural earnings. Urban consumption gained momentum from stable jobs and easing inflation.

PE = Provisional Estimates; P = Projections (Source: PIB [SAE], PIB (PE))

India continued to remain among the worlds fastest-growing major economies during FY 2025-26, supported by steady domestic demand, rising investment activity, and continued policy and infrastructure reforms. According to the latest estimates, India is currently the worlds sixth-largest economy with a nominal GDP of nearly $4.15 trillion in 2026. The country is expected to maintain strong economic growth over the medium term, supported by expansion across manufacturing, infrastructure, services, and consumption-driven sectors.

SL#	Country	GDP
1	United States	$32.38 trillion
2	China	$20.85 trillion
3	Germany	$5.45 trillion
4	Japan	$4.38 trillion
5	United Kingdom	$4.26 trillion
6	India	$4.15 trillion
7	France	$3.6 trillion
8	Italy	$2.74 trillion
9	Russia	$2.66 trillion
10	Brazil	$2.64 trillion

Private consumption continues as the key engine. Lower inflation and rising real wages fuel this momentum.

Public capital expenditure reached 12.2 lakh crore. Such outlays advanced infrastructure and stimulated sectors like manufacturing, construction, and energy. Initiatives such as Viksit Bharat 2047 advance self-reliance and capacity enhancement despite external headwinds.

Average headline Consumer Price Index (CPI) Inflation (retail inflation) reached a historic low of 1.7% during the first nine months of FY 2025-26. This price stability has been a key driver in strengthening domestic purchasing power. However, the inflation rate has risen to 3.4%, mostly due to challenges stemming from the West Asian conflicts.

This stability is supported by disciplined government spending and steady growth in bank credit. Additionally, the banking sector remains resilient with strong capital reserves and low levels of bad loans. With foreign exchange reserves exceeding $700 billion, India has become the fourth-largest economy and is well-positioned to withstand global volatility.

The Union Budget 2026-27 and subsequent policy measures continued to support domestic demand and investment activity while maintaining fiscal discipline.

The Government retained its focus on infrastructure development, manufacturing expansion and employment generation, alongside measures aimed at improving household consumption and private sector participation.

Complementing these fiscal initiatives, the Reserve Bank of India adopted an accommodative monetary approach during 2025 by cumulatively reducing the policy repo rate by 100 basis points, currently unchanged at 5.25%, alongside liquidity-enhancing measures, to improve credit availability, lower borrowing costs and support consumption, private investment and overall economic activity. The implementation of the New Income Tax Act, 2025 and the GST rate rationalization measures introduced during the fiscal have simplified the indirect tax framework by reducing tax rates across several goods and rationalizing the rate structure. The reforms have also addressed inverted duty structures in multiple sectors, improving input tax credit alignment and reducing tax-related inefficiencies.

For the manufacturing sector, these measures are expected to lower compliance costs, improve supply chain efficiency, facilitate smoother movement of goods and strengthen cost competitiveness. Together with higher disposable incomes, easier credit conditions and continued infrastructure spending, these reforms are expected to support industrial production, private investment and formalization of the economy.

Monetary policy has also become increasingly supportive of growth. Moderating inflation has created room for policy accommodation, improving liquidity conditions and supporting credit growth across households and businesses. Improved access to financing, particularly for housing, infrastructure and small and medium enterprises, is expected to stimulate investment activity and consumption demand. Collectively, these measures are likely to support industrial output, construction activity and private capital expenditure, thereby, creating favorable conditions for sectors linked to infrastructure development and electrical equipment demand.

Outlook

The outlook for the Indian economy stays positive and stable. Projections place real GDP growth for FY 2026-27 between 6.8% and 7.2%. These estimates highlight Indias ability to preserve strong momentum despite worldwide uncertainties.

Government spending on infrastructure will continue to provide solid support. Private sector investments keep rising steadily. Policy measures and capacity building further reinforce the manufacturing base. The services sector holds its reliable growth path. Digital progress and resilient exports lend additional strength.

(Source: PIB)

Industrial Overview

Indian Power Industry

India continued to strengthen its position as the worlds third-largest power sector during FY 2025-26, supported by ongoing infrastructure expansion and rising electricity demand across industrial, commercial, and residential segments. The countrys power generation mix is gradually shifting towards cleaner sources, with renewable energy accounting for nearly 40% of the installed power capacity. While coal continued to remain the primary source for baseload power generation, steady additions in solar and wind capacity supported Indias growing presence among the leading renewable energy markets globally.

Indias total installed power generation capacity reached 520.51 GW as of January 2026. The sector added a record

52,537 MW during FY 2025-26 up to January 31, 2026, reflecting continued investments across conventional and renewable energy segments. Renewable energy accounted for a major share of the new additions at 39,657 MW, including 34,955 MW of solar capacity and 4,613 MW of wind capacity.

Total power generation stood at 1,846 TWh during FY 2025-26 up to March 31, 2026. Non-fossil fuel sources contributed nearly 29.2% of the total generation at 539

TWh. During the year, the sector successfully met the peak power demand of 242.49 GW. Renewable energy also recorded a key milestone on July 29, 2025, when it met 51.5% of the countrys electricity demand on a peak day demand of 203 GW.

Continued investments in transmission, distribution, and generation infrastructure supported a sharp reduction in the national energy shortage to 0.03%, compared with 4.2% in FY 2013-14. The sector has also played a significant role in improving electricity access across the country through village electrification and household connectivity initiatives

Indias long-term energy strategy remains centered on increasing renewable energy capacity and reducing dependence on conventional fuel sources. The country continues to progress towards its target of achieving 500 GW of renewable energy capacity by 2030, supported by policy measures, infrastructure expansion, and rising investments in clean energy projects.

(Source: PIB 1, PIB 2, PIB 3, EnerData)

Indian Transmission and Distribution (T&D) Industry

Indias transmission and distribution sector continues to play a central role in connecting power generation facilities with end consumers across the countrys geographically diverse regions. The sector remains critical to supporting the rising scale of electricity generation capacity, which reached 520.51 GW during 2026. Indias transmission network has expanded significantly over the years and now covers nearly 5 lakh circuit kilometers of transmission lines at 220 kV and above. Inter-state transmission capacity reached 1,407 GVA, supporting smoother power transfer across regions and improving grid stability and reliability.

(Source: PIB)

Transmission Development

During FY 2025-26, the Central Electricity Authority recorded the addition of 8,830 circuit kilometers (ckm) of transmission lines across multiple voltage levels.

The additions included 2,158 ckm at the 765 kV level and 4,500 ckm at the 400 kV level, while the remaining capacity was added under the 220 kV segment. However, the overall transmission line addition remained below the planned target of 15,253 ckm during the year, indicating delays in the pace of grid expansion.

The gap between planned and actual additions was

. largely linked to slower execution in the central sector. Power Grid Corporation of India added 2,534 ckm during the year against its targeted expansion, with project implementation affected by land acquisition issues and

Right of Way-related challenges. In comparison, private sector participation remained relatively steady, with nearly

1,483 ckm of transmission lines added during FY 2025-26 in line with planned levels.

Progress under the Green Energy Corridors initiative continued during the year, with around 14,500 ckm of dedicated transmission infrastructure commissioned to support renewable energy evacuation. The project remains important for integrating rising solar and wind power capacity into the national grid and strengthening interstate renewable energy transmission capabilities.

Indias long-term transmission expansion plans continue to be driven by investment. Under the National Electricity Plan, investments of nearly 9.15 lakh crore are expected through 2032 for the development of transmission infrastructure, including the addition of around 1,05,000 ckm of transmission lines and 5,95,000 MVA of transformation capacity. The planned expansion is aimed at supporting projected peak power demand growth and facilitating the evacuation of non-fossil fuel-based power capacity targeted for 2030. Competitive bidding mechanisms and increasing adoption of HVDC transmission technology are also expected to support execution efficiency and grid strengthening over the coming years.

(Source: T&D India, PIB)

Distribution Network

Indias power distribution sector reported a notable improvement in financial performance during FY 2024-25, with distribution companies collectively reporting a profit after tax of 2,701 crore. The improvement marked a significant turnaround compared with the substantial losses recorded by the sector over the past decade. Outstanding government dues also declined to 4,109 crore by January 2026, reflecting improved payment discipline and better liquidity conditions across distribution utilities.

Operational improvements in the sector continued under the Revamped Distribution Sector Scheme. The scheme supported the rollout of prepaid smart meters and distribution transformer metering infrastructure aimed at improving billing efficiency, energy accounting, and loss monitoring. As a result, Aggregate Technical and Commercial losses declined to 16.16%, while the gap between Average Cost of Supply and Average Revenue Realized narrowed to 0.11 per kWh.

The scheme also continued to support rural electrification and last-mile connectivity projects across underserved regions. With a total outlay of 3.03 lakh crore, the program remains focused on strengthening distribution infrastructure, improving supply reliability, and reducing distribution losses further over the coming years.

Policy measures and sector reforms continued during the year, with a focus on improving operational efficiency and financial sustainability within the distribution segment.

These developments supported the sectors ability to meet peak power demand of 242.49 GW during FY 2025-26, while the national energy shortage declined to a low level of 0.03%.

(Source: PIB, Solar Quarter)

Wires and Cables Industry

The global wires and cables industry continued to witness steady expansion, supported by increasing investments in power transmission and distribution networks, renewable energy integration and urban infrastructure development.

The global wires and cables market was valued at $233.0 billion in 2025. The market is projected to increase to $246.48 billion in 2026, before reaching $409.01 billion by 2034, registering a CAGR of 6.54% during the forecast period. Asia Pacific remained the largest regional market, supported by sustained investments in infrastructure, industrialization and electrification across major economies.

Rising construction activity, grid modernization, data center development and expanding telecommunications infrastructure continue to support long-term demand for wires and cables.

The global transition towards cleaner energy systems is creating additional opportunities for the industry. Expansion of renewable energy capacity, strengthening of electricity transmission networks, increasing electrification across transport and industry, and investments in smart grids are driving demand for advanced power and specialized cables. Growing deployment of artificial intelligence infrastructure and hyperscale data centers is also increasing the requirement for reliable, high-performance cable solutions, while stricter safety standards are encouraging the adoption of premium, fire-resistant and environmentally responsible products across residential, commercial and industrial applications.

India is well positioned to benefit from these evolving global trends owing to its expanding manufacturing capabilities, competitive cost structure and improving product quality. Global supply chain diversification and the China plus One sourcing strategy are encouraging international customers to diversify procurement towards alternative manufacturing destinations. India has steadily strengthened its position in the global insulated wires and cables trade, accounting for 1.3% of global exports, with exports increasingly catering to major industrial markets such as the United States and

Germany. Supported by expanding manufacturing capacity, adherence to international quality standards and favorable policy initiatives, Indian manufacturers are strengthening their presence across overseas markets, creating significant long-term export opportunities for the countrys organized wires and cables industry.

The Indian wires and cables (W&C) industry has evolved into a critical enabler of the countrys infrastructure, industrial and economic development, supported by sustained investments in power transmission and distribution, renewable energy, urbanization, real estate, transportation and digital infrastructure. As electrification accelerates across sectors and the need for reliable power connectivity increases, the industry continues to witness broad-based demand across residential, commercial, industrial and utility applications. The increasing emphasis on quality, safety and technologically advanced products is also driving a gradual shift towards organized manufacturers capable of delivering specialized and value-added solutions.

The Indian W&C industry is estimated at approximately

1 lakh crore in FY 2025-26. Historically, the industry has expanded at more than 1.5 times Indias real GDP growth, reflecting its close linkage with the countrys infrastructure and electrification programs. Looking ahead, the industry expected to sustain a double-digit volume CAGR over the next decade, supported by continued investments across infrastructure, renewable energy, power transmission and distribution, industrial capex and emerging applications such as data centers, even as growth in certain traditional demand segments normalizes from a high base.

Demand continues to diversify across multiple end-use sectors. Real estate remains the largest domestic application, accounting for nearly 35% of industry demand, followed by power distribution. Rising investments in commercial buildings, industrial facilities, transportation infrastructure and renewable energy projects are further broadening the industrys demand base. In parallel, the rapid expansion of Indias digital economy is creating new opportunities, with the domestic data center market, currently valued at around $10 billion, projected to grow at a CAGR of approximately 35% over the next four years. Data centers are highly cable-intensive assets, with wires and cables accounting for nearly 8%-10% of total project capex, significantly higher than conventional infrastructure projects.

(Source: Fortune Business Insights, Mordor Intelligence)

Structural Growth Drivers

- Infrastructure and Power Sector Investments:

Continued investments in power transmission and distribution infrastructure, grid modernization and electrification are expected to remain key demand drivers for the wires and cables industry. The sector is also poised to benefit from the expansion of renewable energy capacity and the associated transmission network, supporting sustained demand for power, control and specialized cables across utility and infrastructure applications.

- Real Estate and Urban Development: The real estate sector remains the largest end-use segment for the Indian wires and cables industry, accounting for approximately 35% of total demand.

Sustained residential construction, commercial developments, urban infrastructure expansion and rising demand for premium housing are expected to support long-term consumption of wires and cables.

- Manufacturing Expansion and Industrial Capex:

Increasing investments in domestic manufacturing, is industrial automation and capacity expansion, supported by Production Linked Incentive (PLI) schemes, Government initiatives and private sector capital expenditure, continue to create demand for electrical infrastructure and specialized connectivity solutions across industrial facilities and production ecosystems.

- Digital Infrastructure Expansion: Indias data center market, currently valued at approximately $10 billion, is projected to grow at a CAGR of around 35% over the next four years. Given that wires and cables account for nearly 8%-10% of a data center projects capital expenditure, the rapid expansion of digital infrastructure is expected to emerge as a significant long-term demand driver for the industry.

- Transportation Electrification and Mobility

Infrastructure: Increasing investments in railways, metro rail networks, airports and electric vehicle (EV) charging infrastructure are expanding the application of wires and cables across transportation and public infrastructure projects. The growing electrification of mobility is expected to create sustained demand for reliable power and specialized cable solutions.

- Shift Towards Premium Products and Organized Manufacturers: Increasing emphasis on electrical safety, product quality and regulatory compliance is accelerating the shift in demand towards organized manufacturers with established brands and certified product portfolios. Evolving building regulations, rising consumer awareness and growing preference for reliable electrical solutions are supporting the adoption of premium products, including fire-survival cables, low-smoke zero-halogen (LSZH) wires and other specialized cable solutions. This structural transition is expected to favor organized industry participants with strong manufacturing capabilities, extensive distribution networks and continued investment in product innovation.

	Industry Trends
Premiumization	Growing preference for higher-performance and safety-compliant products such as fire-survival
	and LSZH cables.
Organized Sector	Increasing customer preference for certified and branded manufacturers.
Technology	Higher demand for specialized products across renewables, data centers and industrial
	automation.
Sustainability	Increasing focus on efficient and environmentally responsible manufacturing.
Exports	Indias manufacturing competitiveness is creating export opportunities.

Key Government Initiatives

Government Initiative	Key Objective	Impact on the Wires & Cables Industry
Revamped Distribution Sector Scheme (RDSS)	Modernize and strengthen Indias power distribution infrastructure through network upgrades, smart metering and reduction of technical and commercial losses.	Continued investments in distribution infrastructure, feeder separation, network strengthening and smart grid development are expected to support demand for power, control and distribution cables across utility projects.
PM Gati Shakti	Enhance multimodal connectivity through integrated planning and accelerated	Expansion of transportation and logistics infrastructure is expected to generate sustained demand for electrical connectivity solutions
National Master Plan	infrastructure development across roads, railways, ports, airports and logistics corridors.	across large-scale infrastructure and industrial projects.
Renewable Energy Expansion	Accelerate renewable energy deployment whilestrengtheningtransmissioninfrastructure to support Indias energy transition.	Expansion of solar, wind and associated transmission infrastructure is expected to create long-term demand for specialized power, control and instrumentation cables across renewable energy projects.
Make in India	Strengthen domestic manufacturing capabilities, encourage localization and enhance Indias global manufacturing competitiveness.	Continued focus on domestic manufacturing is supporting industrial capacity expansion, increasing demand for electrical infrastructure while enhancing export opportunities for Indian manufacturers.
Housing and Urban Development Initiatives	Promote residential development, urban infrastructure and planned urbanization across the country.	Continued residential and commercial construction is expected to support sustained demand for building wires, low-voltage cables and allied electrical products across housing and urban infrastructure projects.
Digital Infrastructure Development	Support the expansion of digital infrastructure, including data centers and communication networks, to meet growing digital connectivity requirements.	Increasing investments in data centers and digital infrastructure are creating demand for high-performance power and communication cables, supporting growth in specialized cable applications.
PM Surya Ghar: Muft Bijli Yojana	The initiative aims to accelerate rooftop solar adoption among residential consumers, promote distributed renewable power generation and increase household participation in the clean energy transition.	Expansion of rooftop solar installations is expected to create incremental demand for solar cables, building wires and associated electrical connectivity products used in solar generation systems and their integration with the distribution network.
Green Energy Corridor (GEC)	The initiative focuses on developing transmission infrastructure required to evacuate renewable power from generation-rich regions and integrate increasing renewable energy capacity into the national and state power grids.	Development of renewable power evacuation and transmission infrastructure is expected to support sustained demand for high-voltage, extra-high-voltage (EHV), transmission and distribution cables, as well as specialized products used in substations and grid infrastructure.
Government Initiative	Key Objective	Impact on the Wires & Cables Industry
HVDC Transmission	HVDC transmission is into Indias long-distance and high-capacity is expected to create opportunities for transmission planning transfer of electricity support the integration into the grid.	being incorporated Increasing adoption of HVDC technology to enable efficient high-capacity and technically-advanced cable across regions and systems, particularly for long-distance power of renewable power transmission, renewable energy evacuation and inter-regional power transfer.
Battery Energy Storage Systems (BESS) and Energy Storage	Government initiatives development of energy storage infrastructure to improve renewable enhance grid flexibility and support reliable power availability during periods of variable generation and peak demand.	Growing deployment of BESS is expected to create demand for power, battery, control are supporting the and instrumentation cables used within storage systems and for their connection with energy integration, generation, transmission and distribution infrastructure. The increasing integration of storage with renewable energy projects is also expected to support demand for specialized cable solutions.

Industry Outlook and KEIs Positioning

The long-term outlook for the Indian wires and cables industry remains favorable, supported by sustained investments in power infrastructure, urbanization, manufacturing, transportation, renewable energy and digital infrastructure. Continued public and private capital expenditure, increasing electrification across sectors and the expansion of high-growth applications such as data centers are expected to support broad-based demand for wires and cables across residential, commercial, industrial and infrastructure segments. In parallel, government initiatives aimed at strengthening power infrastructure, enhancing manufacturing competitiveness and accelerating infrastructure development are expected to provide sustained support to the industrys long-term growth trajectory.

At the same time, the industry is witnessing a structural shift towards higher-value and technology-driven products, supported by evolving customer preferences, stricter quality and safety standards and increasing adoption of specialized solutions across renewable energy, digital infrastructure and industrial applications. The growing preference for organized manufacturers with diversified product portfolios, strong quality systems and the ability to deliver value-added solutions is expected to further strengthen the industrys long-term growth prospects.

Against this backdrop, manufacturers with integrated manufacturing capabilities, a diversified product portfolio, established distribution networks and a continued focus on product quality, innovation and capacity expansion are expected to be better positioned to address the evolving requirements of customers across multiple end-use industries. KEI, with its diversified portfolio spanning wires, cables and stainless-steel wires, integrated manufacturing operations, extensive domestic and international network and continued investments in expanding manufacturing capabilities, remains well positioned to cater to the evolving needs of infrastructure, industrial, commercial and residential markets while supporting the industrys long-term growth.

Company Overview

KEI Industries Limited (KEI or the Company), founded in 1968, is one of Indias established manufacturers of wires and cables, catering to residential, commercial, industrial, and infrastructure applications. The Company manufactures a diversified range of products, including low-tension and high-tension power cables, house wires, industrial cables, winding wires, control cables, instrumentation cables, and solar cables. In addition to cable manufacturing, the

Company also undertakes Engineering, Procurement, and

Construction activities for power infrastructure projects. The Company has developed execution capabilities across transmission and distribution projects for utilities and industrial customers. KEI operates manufacturing facilities at Bhiwadi, Chopanki and Pathredi in Rajasthan, Silvassa and Chinchpada in Dadra and Nagar Haveli, and Sanand in

Gujarat. The Sanand facility was developed as a greenfield expansion project to increase production capacity for LT, HT and EHV cables. The Companys domestic presence is supported by a distribution network comprising 2,125 authorized dealers and 36 marketing offices The Company also spread overseas with 4 Offices

UAE, South Africa, Nepal and Gambia.

KEI has also developed backward integration capabilities in PVC and XLPE compound manufacturing, which supports operational efficiency and product quality control. Its operations are supported by quality, environmental, and occupational safety certifications, including ISO 9001:2015,

ISO 14001:2015, and ISO 45001:2018.

KEI supplies products to sectors such as power transmission and distribution, real estate, steel, cement, infrastructure, transportation, refineries, fertilizers, and renewable energy.

The Company also has international presence, exporting to more than 60 countries. Its business strategy continues to focus on manufacturing capacity expansion, product development, operational improvements, renewable energy-related opportunities, and technology integration across business processes.

Positioned to Capture Future Growth

The Indian wires and cables industry is entering a phase of sustained expansion, supported by investments in power infrastructure, manufacturing, urban development and digital infrastructure. KEI has continued to strengthen its manufacturing capabilities, distribution reach, customer relationships and international presence to position itself for the increasing demand across domestic and overseas markets.

Manufacturing Capacity Expansion

The Company continues to strengthen its manufacturing capabilities through capacity expansion initiatives to support future demand across its product portfolio. The upcoming manufacturing facility at Sanand, Gujarat, is expected to enhance production capacity, improve operational flexibility and enable the Company to cater to the growing requirements of domestic as well as international customers. The expansion is aligned with the Companys long-term strategy of strengthening its manufacturing-led business while supporting growth across retail, institutional and export markets.

Expanding Retail Reach and Distribution Network

KEI has continued to strengthen its retail presence by expanding its dealer and distributor network across the country. As on March 31, 2026, the Company had 2,125 active working dealers, while sales through the dealer and distribution channel increased 25% during FY26 and contributed 54% of total sales. The expanding distribution network is enabling deeper market penetration and improving product availability across key markets.

Deepening Customer Relationships

The Company continues to strengthen engagement across both retail and institutional customer segments through an expanded product portfolio, consistent service standards and long-standing business relationships. Its diversified customer base across infrastructure, industrial, real estate, power and commercial sectors supports business stability while creating opportunities for repeat business and cross-selling of value-added products.

Strengthening Export Presence

Exports continue to remain an important component of the Companys growth strategy. During FY26, export sales increased to 1,833 crore from 1,267 crore in the previous year, reflecting the Companys expanding international presence and increasing acceptance across overseas markets. The continued diversification of export markets is expected to provide an additional avenue for long-term growth.

International Quality Standards and Product

Certifications

The Company continues to strengthen its global competitiveness through adherence to internationally recognized quality standards and product certifications across key export markets. These certifications enhance customer confidence, facilitate access to overseas markets and support participation in international infrastructure and industrial projects, thereby strengthening the Companys export capabilities.

Product Portfolio

Cables

KEI manufactures a wide range of cables used across power infrastructure, industrial operations, construction projects, and specialized applications. The Companys products cater to sectors such as power utilities, refineries, railways, automobiles, cement, steel, fertilizers, textiles, real estate, and other industrial segments. These products support power transmission, electrical connectivity, communication systems, and operational continuity across critical infrastructure and industrial facilities.

The Company also manufactures specialized products, including solar cables for renewable energy projects and marine and offshore submersible cables designed for demanding underwater operating conditions. KEIs product portfolio comprises a broad range of cable solutions across multiple voltage categories and industrial applications.

KEIs comprehensive cable offerings include:

- Extra-High Voltage (EHV) cables up to 400 KV

- High Tension (HT) and Low Tension (LT) power cables

- Instrumentation and control cables

- Single core/multicore flexible cables

- Rubber cables

- Solar cables

- Fire survival/resistant cables

- Marine & offshore submersible cables

- Communication cables

- Thermocouple cables

- EV charging cables and guns

- ESP cables

- House wires

- Winding wires

- Stainless steel wires

- Medium voltage cover conductors (MVCC) cables

KEI has established its presence in the Extra High

Voltage cable segment up to 400 kV. Over the years, the Company has secured pre-qualification approvals that enable participation in large-scale EHV cable projects and transmission infrastructure tenders.

Demand for EHV cables has continued to increase across transmission and distribution networks, supported by the growing preference for underground cabling solutions and the operational advantages offered over conventional overhead transmission systems. KEI has also strengthened its position in this segment through Engineering, Procurement, and Construction project execution capabilities and backward integration in PVC &

XLPE compound manufacturing.

EPC Projects

KEI provides Engineering, Procurement, and Construction services across power transmission and distribution infrastructure projects. The Company undertakes turnkey project execution covering Gas Insulated Substations, Air Insulated Substations, overhead transmission systems, underground cabling networks, and related distribution infrastructure projects.

The Company has progressively adopted a more selective approach towards the EPC business, recognizing its relatively higher working capital requirements and longer project execution cycles. This strategic shift enables more efficient allocation of capital towards higher-margin and asset-light growth segments, particularly retail wires and cables, exports and value-added products, where capital turnover and return potential are comparatively stronger. While the EPC business continues to support the

Companys presence in the power infrastructure sector and strengthens long-standing customer relationships, KEIs long-term growth strategy remains focused on expanding its manufacturing-led businesses and improving overall capital efficiency through disciplined capital allocation.

Business Segment

Retail

KEI derives a significant share of its business from retail operations comprising house wires, low tension cables, and high-tension cables. The retail segment continues to remain an important contributor to the Companys revenue and profitability, supported by product quality, established market presence, and brand recognition developed over the years.

The Company has continued to expand its retail reach through focused marketing initiatives, dealer network expansion and brand visibility programmes. KEIs distribution network comprised 2,125 active dealers as of March 31, 2026, supporting wider product availability across metropolitan regions as well as Tier I and Tier II cities.

The wires and cables industry is witnessing increasing preference for safer, energy-efficient and environmentally responsible products. Rising awareness regarding fire safety, building standards and sustainability considerations is supporting demand for low-smoke, halogen-free, fire-resistant and other specialized cable solutions across residential, commercial and infrastructure applications. The growing adoption of green buildings, data centers and modern electrical infrastructure is further increasing the requirement for higher-specification and application-oriented products. In response to these evolving market trends, the Company continues to strengthen its product portfolio through its NABL-accredited research and development center and the introduction of advanced cable solutions designed to meet changing customer requirements and support its positioning in the premium segment.

Key Highlights

The Companys heightened attention to retail delivered solid outcomes. Sales reached 6,349 crore in FY 2025-26, up from 5,088 crore the previous year. Retails contribution to net sales rose to 54% in FY 2025-26 from 52% in FY 2024-25.

Institutional

KEIs institutional business focuses on supplying top-quality

Extra High Voltage (EHV) cables, HT and LT cables, plus stainless-steel wires, while handling complete turnkey

EPC contracts. High entry hurdles, including substantial capital needs, specialized technical knowledge, proven execution history, and strict regulatory standards, protect this competitive space.

Over time, KEI has developed a dominant institutional presence by prioritizing product superiority, cutting-edge production capabilities, steady R&D investments, and smart go-to-market approaches. Strong demand flows from sectors such as oil and gas operations, refineries, railway systems, metro developments, power transmission, renewable projects, cement production, steel manufacturing, data centers, electric vehicle infrastructure, and property development.

Key Highlights

Domestic institutional sales grew to 3,614 crore in FY 2025-26 from 3,412 crore in FY 2024-25. The segment accounted for 31% of net sales in FY 2025-26, down from 35% the prior year.

Exports

KEI has established itself as a significant international contender within the wires and cables sector, with overseas operations gaining momentum through a forward-thinking range of premium products that adhere to demanding global benchmarks. The Company conducts business across more than 60 nations, backedbydedicatedofficesin four key overseas locations, delivering Extra High Voltage

(EHV), Medium Voltage (MV), and Low Voltage (LV) cables to vital industries such as oil and gas projects, renewable energy developments, and utility networks.

Primary destinations for these exports encompass Australia, the United States, Europe, the Middle East and various

African markets.

Key Highlights

Even amidst worldwide economic pressures and regional geopolitical strains, export revenues climbed to 1,833 crore in FY 2025-26 from 1,267 crore recorded in FY 2024-25. The period marked KEIs successful entry into

European and US territories, moves anticipated to bolster both revenue growth and profitability moving forward. Looking ahead, KEI targets elevating this share to 20% within medium term by capitalizing on the forthcoming

Sanand plants advanced EHV and HVDC production strengths to fulfil rising worldwide requirements, further cementing its standing as a reliable global collaborator.

Financial Overview

Financial Performance FY 2025-26

Particulars	FY 2025-26	FY 2024-25	YoY (%)
Revenues	11,747.77	9,735.88	21%
EBITDA	1,387.60	1,062.76	31%
Profit Before Tax (PBT)	1,232.33	936.97	32%
Profit After Tax (PAT)	918.43	696.41	32%

Key Standalone Financial Ratios

Particulars	FY 2025-26	FY 2024-25	Explanation for the change in the ratio by more than 25% as compared to the previous year
Debtor Turnover Ratio	6.46	5.87	NA
Inventory Turnover Ratio	5.69	6.34	NA
Interest Coverage Ratio	20.22	17.84	NA
			Decreased due to increase in Trade Payable and
Current Ratio	2.96	4.18	utilized QIP Fund
Debt Equity Ratio	0.03	0.03	NA
Operational Profit Margin	10.46%	10.18%	NA
Net Profit Margin	7.82%	7.15%	NA
Return on Net Worth	14.75%	15.59%	NA

Segment-wise revenue contribution FY26

Particulars	FY 2025-26	FY 2024-25
Total Wires & Cables	11,264.64	9,208.94
EPC	311.10	342.61
SS Wires	212.24	211.91
Other	-40.21	-27.58
Total	11,747.77	9,735.88

Opportunities and Threats

Market Opportunities

- Export Market Expansion: Global supply chain diversification and the China Plus One sourcing strategy continue to create opportunities for Indian manufacturers to strengthen their presence in international markets. KEI is well positioned to benefit from this trend through its expanding export footprint, internationally certified product portfolio, growing manufacturing capabilities and presence across multiple overseas markets. The Companys continued focus on international quality standards and customer acquisition is expected to support long-term export growth.

- Import Substitution and Domestic Manufacturing:

Government initiatives such as the Make in India programme, Production Linked Incentive (PLI) schemes and Quality Control Orders (QCOs) are encouraging greater adoption of domestically manufactured electrical products. With its integrated manufacturing facilities, diversified product portfolio and established quality standards, KEI is well positioned to capitalize on the increasing preference for organised domestic manufacturers across infrastructure, industrial and building projects.

- Expansion of Value-added and Specialized Products:

Growing preference for technologically advanced and application-specific products is driving demand for specialized offerings such as fire-survival cables, low-smoke zero-halogen (LSZH) wires, solar cables, instrumentation cables, railway cables and other high-performance electrical solutions. KEI continues to strengthen its value-added product portfolio through ongoing product development and manufacturing capabilities, enabling the Company to address evolving customer requirements while improving product differentiation and value realization.

- Industry Consolidation and Formalization:

Rising compliance requirements, stricter quality standards, increasing emphasis on product safety and implementation of Quality Control Orders are accelerating the shift from unorganized to organized manufacturers. With an established brand, diversified product portfolio, extensive dealer and distributor network, proven execution capabilities and long-standing customer relationships, KEI is well positioned to strengthen its market presence as industry consolidation continues.

- Innovation and Technology-led Product Development: Advancements in electrical infrastructure, industrial automation, renewable energy systems and smart buildings continue to increase demand for technologically advanced cable solutions. KEI supports these evolving requirements through continuous product development, research and development capabilities and a focus on quality and testing standards, enabling the Company to address emerging applications across domestic and international markets.

Business Threats

- Raw Material Price Volatility: Fluctuations in the prices of key raw materials, particularly copper and aluminium, may affect input costs, profitability and working capital requirements, especially in a competitive pricing environment. KEI mitigates this risk through calibrated pricing strategies, disciplined inventory management, diversified procurement practices and a broad customer base, enabling the Company to manage commodity price movements while maintaining operational stability.

- Intensifying Competitive Landscape: Capacity additions by existing manufacturers and the entry of new players may increase competitive intensity and exert pricing pressure across product categories.

KEIs established brand, diversified product portfolio, extensive dealer and distributor network, long-standing institutional customer relationships and strong execution capabilities position the Company to compete effectively across retail, institutional and export markets.

- Execution Risks in Infrastructure Projects: Delays in project approvals, execution or implementation of large infrastructure and power projects may affect demandacrosscertainend-usesegments.KEImitigates this risk through a diversified business model with balanced exposure across retail, institutional, export and EPC businesses, reducing dependence on any single demand segment while supporting business continuity.

- Regulatory and Compliance Requirements:

Increasing quality, environmental and safety standards require continuous investments in manufacturing capabilities, product development and compliance systems. KEI continues to invest in modern manufacturing facilities, research and development, quality assurance processes and internationally recognized product certifications, enabling the Company to meet evolving regulatory requirements across domestic and international markets.

- Global Economic and Trade Uncertainties: Changes in global trade policies, geopolitical developments, currency fluctuations and supply chain disruptions may influence export demand, raw material availability and overall market sentiment. KEI continues to diversify its export presence across multiple geographies while maintaining a balanced domestic and international business portfolio, helping reduce concentration risk and enhance business stability amid changing global conditions.

Strategic Initiatives and Outlook

KEI is pursuing a multifaceted strategic outlook focused on scaling operations and deepening market reach. A primary pillar of this strategy involves capacity expansion through both brownfield and greenfield projects to meet rising demand. The company is also committed to growing its retail business and expanding its distribution network to increase penetration across diverse regions.

Beyond domestic growth, the outlook emphasizes scaling up exports to strengthen the Companys presence in overseas markets. Furthermore, KEI aims to gain a larger share in the Extra High Voltage (EHV) market by leveraging increased capacity and specialized focus in this segment. Together, these initiatives form a comprehensive roadmap for sustained industrial and retail leadership.

Risk Management

The Company navigates a range of external uncertainties and market volatilities within its operating landscape. Functioning amid fierce industry rivalry, the Company remains influenced by both supportive and challenging economic cycles. Pressures arise from intense competition by major established competitors, alongside hurdles in attracting and retaining top talent. Persistent external factors, such as currency exchange rate swings, weakened global economic momentum, inflationary pressures, and geopolitical instabilities, continue to present formidable obstacles.

Regulatory and policy developments further complicate business execution for the Company. KEI has implemented a detailed Risk Management Policy to enable swift recognition, evaluation, ongoing surveillance, and neutralization of threats that could disrupt core activities.

The dedicated Risk Management Committee performs regular evaluations of operational performance against critical vulnerabilities emerging from the fluid business terrain, as flagged by senior leadership. This body systematically develops and refines tailored to these exposures.

For complete insights into principal risks and KEIs mitigation frameworks, refer to the Risk Management chapter on pages 30-33.

Human Resources

The Company regards its workforce as the fundamental driver behind its achievements, powering creativity, process improvements, and dominant positioning within the wires and cables market. The Companys approach to human resources centers on forward-thinking, people-first practices that nurture a capable, varied, and motivated team. Through fostering an environment that values expertise, diversity, and lifelong skill enhancement, KEI equips its employees to excel amid shifting international demands while synchronizing personal advancement with organizational goals.

KEI channels substantial resources into preparing its talent for tomorrow via comprehensive learning initiatives that build expertise in technical areas, management skills, and interpersonal abilities. A framework of appreciation and performance-based progression prevails, honouring exceptional efforts with incentives and pathways for professional elevation.

The Companys permanent employee strength stood at 2,098 as of March 31, 2026 while the total number of contractual employees was 149.

For more details on human resources, please refer to the Human Capital on page 60-73.

Environment, Health, and Safety

KEI maintains a comprehensive Environment, Health, and Safety (EHS) system, incorporating strict guidelines and procedures throughout its operations to prioritize worker protection, environmental responsibility, and overall welfare. Consistent with international standards, the Company embeds advanced safety practices into all stages of production at facilities including Bhiwadi, Silvassa, and greenfield plant in Sanand, Gujarat.

KEIs EHS approach systematically detects potential workplace dangers, addresses vulnerabilities, and reduces occurrences of accidents or hazardous exposures, demonstrating a clear focus on superior operational performance. During the year, extensive training programs for staff reinforced a culture where safety takes precedence, modeled after global peers that view employee safety as essential to long-term viability. These initiatives highlight

KEIs resolve to create a workplace that safeguards health and promotes sustainability.

For further details on EHS initiatives, refer to the Human Capital chapter on pages 60-73.

Internal Control Systems and their Adequacy

The Company has established a robust internal control framework, commensurate with the size and nature of its business operations. These controls are designed to address governance, compliance, audit, control, and reporting concerns that may impact its operations.

These internal controls play a vital role in ensuring regulatory compliance, protecting assets, preventing fraud, and ensuring the accuracy of financial reporting. The Companys internal auditors are responsible for regularly monitoring and evaluating the effectiveness of these internal control systems. Any significant findings are promptly reported to management for swift corrective action.

Cautionary Statement

This Management Discussion and Analysis include certain statements reflecting the Companys perspectives on industry trends, strategic goals, forecasts, projections, or anticipated outcomes, which qualify as forward-looking statements under relevant securities laws and regulations.

These projections rely on carefully considered assessments and reasonable assumptions.

Realized outcomes could deviate significantly from those indicated or suggested, influenced by numerous variables impacting business operations and financial results, including broader economic conditions, market demand or pricing dynamics, shifts in interest rates, intensified market competition, technological advancements, regulatory changes, evolving government policies, tax legislation, statutory modifications, and related circumstances.

The Company assumes no obligation to update, revise, or publicly disclose changes to any forward-looking statements, regardless of subsequent events, emerging data, future developments, or other factors.