KEI Industries Ltd Management Discussions

<dhhead>Management Discussion and Analysis</dhhead>

Economic Overview

Global Economy

With stable but modest growth for 2024, the global economy remained on the path of cautious stability. According to the International Monetary Fund (IMF), the global economy grew at a modest rate of 3.3%, matching the previous year but below the historical average of 3.7% from 2000-2019. In January 2025, the IMF expected the global economy to grow at 3.2% for both 2025 and 2026. But escalating trade tensions and tari_ implementation by the current US administration have led to significant uncertainty in global economic projections. IMF’s April 2025 World Economic Outook reflects some of these concerns, with downward revision to growth estimates at 2.8% and 3% respectively for 2025 and 2026.

For 2024, the economic performance varied significantly across regions. The United States drove global growth, with GDP expansion estimated at 2.8% in 2024, supported by strong consumer spending, favorable financial conditions, and a resilient labour market. However, the current trade-related disruptions are expected to impact growth, with projections indicating deceleration to 1.8% in 2025. The Euro Area presented a contrasting picture with a sluggish growth of 0.9% in 2024 amid manufacturing weaknesses and geopolitical uncertainties. Growth is expected to slow further to 0.8% in 2025 before rebounding in 2026.

Advanced economies (AEs) expanded by 1.9% in 2024, which is expected to slow down to 1.2% in 2025 before improving to 1.5% in 2026 due to world trade-related headwinds. Emerging markets and developing economies (EMDEs) are forecast to grow at 3.3% after a 4.8% growth in 2024.

China’s economy registered a 5% growth in 2024 with internal and external headwinds. This growth is further expected to moderate to 4% in 2025, as fiscal support measures partially offset trade policy uncertainties and property sector headwinds. Meanwhile, India remains a bright spot, maintaining robust growth of 6.5% in 2024, with similar projections for 2025 and 2026, aligning with its long-term potential.

Global disinflation has continued, with headline inflation declining from 6.8% in 2023 to an estimated 4.7% in 2024, and projected to fall further to 4.3% in 2025 and 3.6% in 2026. Core inflation remains elevated in some economies, particularly in services, reflecting persistent cost pressures. Advanced economies are moving closer to their inflation targets faster than emerging markets, allowing for more accommodative monetary policies in several regions. However, the pace of policy easing remains uneven, with some central banks cautiously cutting rates while others maintain a tighter stance to address lingering inflation concerns.

The global economic outlook faces significant challenges from escalating trade policy uncertainties, ongoing geopolitical risks, and tari_ escalations continue to pose downside risks, particularly for trade-intensive economies.

Global Growth Projections (%)

Growth Projections

	Global Economy	Advanced Economies	Emerging Economies
2024	3.3	1.8	4.3
2025	2.8	1.4	3.7
2026	3.0	1.5	3.9

Source: IMF

Indian Economy

Indian economy continues to be the fastest-growing large economy, though the pace of growth has slightly moderated for FY 2024-25. According to the Government Estimates, the economy grew 6.5% in FY 2024-25, compared to 9.2% growth in FY 2023-24. 9.4% growth in the Construction sector and 7.2% growth in the services sector have been the main contributors to GDP growth in FY 2024-25.

India’s merchandise trade deficit stood at US$ 282.83 billion compared to US$ 241.14 billion in the previous fiscal year. Total merchandise exports were almost fiat at US$ 437.42 billion in FY 2024-25 compared to US$ 437.07 billion in FY 2023-24. For the financial year 2024-25, the cumulative IIP growth stood at 4%, a slowdown from the 5.9% growth recorded in the previous year. The mining sector recorded 3% growth, manufacturing stood at 4.1%, metallic minerals at 4.2% and electricity at 5.2%. CPI inflation has been on a downward trajectory and eased to 4.6% for FY 2024-25.

According to the Reserve Bank of India (RBI), CPI inflation is forecasted to decline further to 4% in FY 2025-26. However, continued uncertainty in global financial markets, coupled with volatility in energy prices and adverse weather events, presents upside risks to the inflation trajectory. Considering inflation has stayed within the comfort band of RBI, the bank reduced REPO rates by 25 bps in February 2025 for the first time in five years and by a further 25 bps in April 2025 monetary policy. Additionally, in June 2025, RBI again cut down the REPO rate for the third time by another 50 bps, taking the effective REPO rate to 5.5%.

RBI projects the Indian economy to grow at 6.7% for FY 2025-26. This growth will be achieved on the back of improvements in the manufacturing sector and government impetus to growth through the budget like reduction in direct taxes and investments in infrastructure.

Industry Overview

Wires & Cables Industry

The global Wire and Cable Market size is estimated at US$ 240.98 billion in 2025, and is expected to reach US$ 314.96 billion by 2030, at a CAGR of 5.5% during the forecast period (2025-2030). Increasing demand for electricity and increasing adoption of renewable energy sources such as solar and wind power that require specialized wires and cables are one of the demand drivers. The growing emphasis on sustainable and energy-e_cient buildings has created additional demand for specialized wiring solutions.

The wires and cables (W&C) industry constitutes ~39% of the electrical industry in India. Moving forward, the wires and cables market is expected to grow at a CAGR of ~11%-13% between FY 2023-24 and FY 2028-29, and reach

~Rs. 1,20,000 crore by FY 2028-29 on the back of ongoing infra structure development projects, surge in construction activities and increasing digital connectivity. The exports of wire and cables surged to ~ Rs. 16,765 crore in. FY 2023-24 from Rs. 8,322 crore in FY 2019-20. The exports were further up 8% YoY from April 2024 to October 2024 (Source: CRISIL MI&A)

Renewable Energy Sector Demand

• India is working towards achieving 500 GW of installed electricity capacity from non-fossil sources by 2030. Renewable energy requires specialized wires and cables, increasing demand for the same

Telecommunications Sector Expansion

• Rapid growth driven by smartphone penetration (46 %+), 5G penetration (23% by end of 2024) and broadband subscriber increases (~950 million users)

• India’sdatacenter(DC)operationalcapacityisexpected to increase to 2,000-2,100 MW by March 2027 from around 1,150 MW as of December 2024, on the back of data usage and data localization initiatives, according to rating agency ICRA. As per the CRISIL MI&A, the Indian Data Center (IDC) industry is expected to grow at a CAGR of ~30% between FY 2023-24 and FY 2026-27, crossing 2 GW of installed capacity.

The growth is enabled by increasing consumption of data, 5G rollouts across India as well as advancement in technologies such as IoT, Big data, Artificial intelligence and Machine Learning

Infrastructure and Housing Initiatives

• India’s urban population will surge to 600 million by 2031. As per World Population Prospects 2024, India is expected to remain world’s most populous country throughout the century and likely to reach its peak population in the early 2060s at ~ 1.7 billion. Economic prosperity, urbanization (40% population expected to be urban as per UN report on urbanization) and aspirations are resulting in increased demand for new housing units, amplifying the need for housing wire

• In the FY 2025-26 Budget, the government introduced initiatives to support housing and 2 – a infrastructure, with a focus on affordable housing. Following the success of SWAMIH Fund I, SWAMIH Fund 2—a Rs. 15,000 crore blended finance facility – will be launched, funded by the government, banks, and private investors, to speed up the completion of stalled housing projects and assist homebuyers. Additionally, urban development efforts include setting up a Rs. 1 lakh crore Urban Challenge Fund to promote city growth and development

• The budget allocated Rs. 11.21 lakh crore for the infra sector. Government focus on power, railways, roads, and petrochemicals, alongside BS-VI emission compliance, spurs manufacturing and capacity expansion, increasing power cable needs. Smart City Mission, metro railways, and EV charging infrastructure stimulate specialized cable demand

• Construction capex in the building & construction sector is projected to grow from Rs. 12.5-13.5 lakh crore between FY 2019-20 and FY 2023-24 to Rs. 18-19 lakh crore between FY 2024-25 and FY 2028-29, thereby showing a rising ~1.4x times. This growing demand for residential and commercial spaces will necessitate increased demand for cables, especially housing cables as well as communication cables, due to faster digital transformation, which is expected to provide an additional boost to the overall cable industry

• Challenges include high installation costs, raw material price fluctuations, and supply chain disruptions

Power Industry in India

India is the third-largest producer of electricity in the world with a total installed power capacity of 475.212 GW as on March 31, 2025. The sector is undergoing a transformative shift, driven by the increasing integration of renewable energy sources, robust policy frameworks, and rising energy demand following economic progress, growing urbanization, industrialization and climate change. According to CRISIL, from FY 2024-25 to FY 2028-29, power demand is projected to grow at a CAGR of 5%-7% to reach 2,160-2,180 BUs, on the back of healthy economic growth and expansion of the power footprint via strengthening of distribution infrastructure. With ambitious targets outlined in the National Electricity Plan (NEP) 2022-32, India’s power industry is poised for sustained growth, balancing energy security with sustainability goals.

Emphasis on Renewable Power

As of March 2025, India’s total renewable energy installed capacity has reached 220.10 GW, with a record addition of 30 GW during the fiscal year as against 25 GW in FY 2023-24. Out of this, solar energy contributed to 106 GW capacity while wind power crossed 50 GW. India is set to significantly boost its reliance on non-fossil fuel sources to achieve a 45% reduction in GDP emission intensity by 2030, relative to 2005 levels. The country’s installed electrical power capacity is projected to surge by 86%, rising from 416 GW in fiscal 2023 to an estimated 770-780

GW by fiscal 2030. Non-fossil fuel sources are expected to account for approximately 90% of this expanded capacity. Within this shift, renewable energy (excluding hydropower) is poised for a robust increase of 310-320 GW by fiscal 2030, reflecting an impressive compound annual growth rate (CAGR) of 18% from fiscal 2023. This growth will elevate renewables to a 57% share of total installed capacity. Solar and wind energy will drive the majority of this expansion, with additions of 210-220 GW and 50-55 GW, respectively, between FY 2022-23 and FY 2029-30.

The capacity addition is likely to cross 40 GW in FY 2025-26 led by the scale-up in RE capacity addition as well as higher capacity addition in the thermal segment, wherein several projects by Central and state PSUs are in the last leg of completion. Rising domestic energy demand has driven notable advancements in power generation, transmission, and distribution, with a dynamic shift towards renewable energy sources such as solar and wind.

India’s power sources as of	Installed capacity (in GW)	Share (%) in power generation
January 31, 2025
Coal	220.49	47.29
Hydro power	46.97	10.07
Nuclear	8.18	1.75
Oil and Gas	25.41	5.45
Small hydro	5.1	1.09
Solar energy	100.33	21.52
Wind	48.37	10.37
Bio power	11.41	2.45
Total	466.26	100

(Source: India Energy, NITI Aayog, CRISIL)

India’s National Electricity Plan (2022-32)

The National Electricity Plan (NEP) outlines India’s strategy for power expansion over the next decade. Key targets include:

• Peak demand forecast: 277.2 GW by 2026-27, 366.4 GW by 2031-32

• Installed capacity target: 609 GW by 2031-32

• Renewable energy goal: 500 GW of non-fossil fuel capacity by 2030

• Investment requirement: Rs. 33.6 trillion (US$ 384.5 billion) over the next decade

While renewables are pivotal to the National Electricity Plan (NEP), coal-based capacity is set to rise by 80 GW by 2031-32 to provide stable baseload power. Nuclear energy is projected to reach 100 GW by 2047, with India aiming to expand nuclear capacity to 14.3 GW of conventional nuclear power by 2032 and develop small modular reactors (SMRs) by 2033.

Key growth drivers for the Indian power industry

Economic and Industrial Growth

• India’s economic progress and surge in industrial activity have significantly increased

• The rise in per-capita power consumption is attributed to growing disposable incomes, increasing nuclear families, and expansion in the housing sector. The economic growth has resulted in increasing urbanization, leading to more demand for electricity

• The per capita electricity consumption in India was 1,395 kWh in India for FY 2023-24, while China consumed 6,635 kWh per capita electricity in 2023

Policy and Infrastructure Initiatives

• The National Infrastructure Pipeline (NIP), with 9,288 projects and a total outlay of Rs. 108 lakh crore between 2020-2025, has prioritized energy sector investments, accounting for 25% of projected infrastructure spending

• Schemes like the Integrated Power Development Scheme (IPDS) have enhanced sub-transmission and distribution networks, ensuring reliable power supply and reducing losses

• Increased investments in railway electrification and metro trains have further driven demand for additional power and capacity. The railway electrification is expected to generate an incremental power demand of approximately 23 BUs on an average every year between FY 2024-25 FY 2028-29

• Rural electrification initiatives, such as the Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) and SAUBHAGYA schemes, have extended power access to households nationwide, contributing to rising consumption

Renewable Energy Push and Energy Transition

• India’s commitment to renewable energy, with a target of 500 GW of non-fossil fuel capacity by 2030, is a key growth driver. Solar and wind energy have seen significant capacity additions, supported by favorable policies and declining costs

• The National Manufacturing Mission for Clean Tech aims to reduce dependence on imports for solar PV cells, wind turbines, and battery storage, fostering local manufacturing and cost competitiveness. Reduced customs duties on solar modules, lithium-ion battery waste, and critical minerals further bolster this effort.

• The Government is offering incentives to domestic manufacturing including Rs. 7,453 crore viability gap funding for offshore wind energy projects, Rs. 17,490 crore financial incentives for manufacturing of electrolyzers under SIGHT scheme and Rs. 24,000 crore PLI scheme for high-e_ciency solar PV modules.

With a robust policy framework, significant investments, and a diverse energy mix, the sector is well-positioned to meet the challenges of urbanization, industrialization, and climate change. The National Electricity Plan (2022-32) provides a clear roadmap for achieving energy security and sustainability, ensuring that India continues to power its growth trajectory while contributing to global climate goals.

Transmission and Distribution (T&D) Industry in India

India’stransmissionanddistribution(T&D)sectorisacritical enabler of the nation’s energy transition and economic growth, facilitating the efficient transfer of electricity from generation sources to end consumers. As India strives to meet its ambitious renewable energy targets and address rising electricity demand, the T&D sector is undergoing a transformative phase. With a focus on modernizing infrastructure, integrating renewable energy, and reducing losses, the sector is poised for significant capital expenditure and technological advancements.

India’s T&D infrastructure has witnessed substantial growth over the past decade, reflecting the country’s efforts to expand its power network and enhance grid reliability. However, the lines saw lowest addition in FY 2024-25 due to Right of the Way (RoW) constraints that hampered the progress of transmission lines, with inadequate compensation to landowners being the principal reason. The Union Power Ministry, revised the rates significantly in June 2024 and we expect the progress to resume going ahead.

	By voltage class			By voltage class			By network		Total
	220kV	400kV	765kV	Central	State	Private	ISTS	INSTS
FY24	5,996	6,088	2,119	3,938	6,993	3,272	6,283	7,920	14,203
FY25	3,718	2,954	2,158	2,586	4,761	1,483	3,253	5,577	8,830
% change	-38.0	-51.5	1.8	-34.3	-31.9	-54.7	-48.2	-29.6	-37.8

Note: There was no HVDC line addition in both FY24 and FY25

Source: CEA (Central Electricity Authority)

The growth of India’s T&D sector is driven by a confluence of domestic and global factors including rising power demand, renewable energy integration, policy initiatives and export opportunities aligning with the country’s energy transition and economic aspirations.

The NEP Volume II, released in October 2024, outlines an investment of Rs. 9.15 lakh crore for T&D infrastructure by FY 2031-32, including Rs. 4.2 lakh crore for projects between 2022 and 2027 and Rs. 4.9 lakh crore between 2027 and 2032. The National Committee of Transmission (NCT) has approved projects worth Rs. 2 lakh crore in the last two years. Transmission expansion under the NEP targets the addition of 1,91,474 ckm of transmission lines and 1,274 GVA of transformation capacity by FY 2031-32. Nine HVDC transmission systems with a capacity of 33.25 GW are planned by 2032, complementing the existing 33.50 GW. Inter-regional transmission capacity is expected to reach 142,940 MW by FY 2026-27. The NEP 2023-32 provides a strategic roadmap for T&D development, focusing on renewableenergyevacuation,cross-borderinterconnections (e.g., with Nepal, Bhutan, Bangladesh, and Sri Lanka), and private sector participation through tari_-based competitive bidding (TBCB).

EPC Industry in India

The Engineering, Procurement, and Construction (EPC) sector plays a crucial role in India’s infrastructure development, particularly within the power sector. EPC projects typically encompass design, civil works, equipment purchase, installation, and commissioning. Over the years, the scope of EPC work has expanded to include Operation and Management (O&M) services, with EPC providers offering integrated and customized solutions to meet diverse client requirements. The Indian power sector has seen substantial investments, and this trend is expected to continue. Investments in the power sector is projected to increase by 1.7 times, from Rs. 14.7 lakh crore between FY 2018-19 and FY 2023-24 to Rs. 24.5-25.5 trillion between FY 2024-25 and FY 2028-29.

Several factors drive the growth of the EPC industry in India’s power sector. The Government’s push towards reducing coal imports, increasing focus on renewable energy, development of transmission and distribution (T&D) infrastructure, and rising power demand are key contributors. This growth is fueled by capacity additions in the generation segment, particularly in renewable energy, alongside investments in conventional generation and emission-control technologies like _ue gas desulfurization (FGD). Additionally, the distribution segment benefits from schemes like the Revamped Distribution Sector Scheme (RDSS), while transmission investments are driven by interstate transmission systems and green energy corridors. Within this investment landscape, EPC projects account for an estimated 40–50% of the total power sector investments, underscoring their critical role in infrastructure expansion. Looking ahead, the sector’s prospects remain strong, supported by government initiatives like the National Infrastructure Pipeline and policies aimed at reducing coal imports, though challenges such as regulatory complexities, cost overruns, and intense market competition could temper progress. Nonetheless, the shift towards clean energy and enhanced distribution networks positions the EPC industry as a cornerstone of India’s power sector evolution.

Impact of Union Budget 2024-25

Budgetary Allocations and Key Focus Areas

• Renewable Energy Expansion: Continued momentum towards achieving 500 GW of non-fossil fuel capacity by 2030, with solar, wind, and green hydrogen as key pillars

• Nuclear Energy Development: A target of 100 GW nuclear capacity by 2047, supported by legislative reforms and investments in Small Modular Reactors (SMRs)

• Grid Modernization and T&D Efficiency: Emphasis on smart metering, loss reduction, and transmission capacity expansion to support renewable energy evacuation

• Self-Reliance and Domestic Manufacturing: Strengthening supply chains through the National Manufacturing Mission and National Critical Mineral Mission

Integrated Annual Report 2024-25

Management Discussion and Analysis

• Energy Security and Sustainability: Policies for pumped storage projects, energy storage solutions, and decarbonization of hard-to-abate industries

Impact on the Power Sector

The Union Budget 2025 continues to provide momentum to India’s clean energy transition, driving towards a low-carbon, energy-secure future.

Renewable Energy and Distributed Solar:

The Union Budget FY 2025-26 allocated Rs. 26,549.38 crore to the Ministry of New and Renewable Energy, up 53.48% against revised estimate of Rs. 17,298.44 crore a year ago. The government allocated Rs. 24,224.36 crore out of the amount towards solar energy. This includes Rs. 1,500 crore towards solar power (grid), Rs. 2,600 crore towards Kisan Urja Suraksha evam Utthaan Mahabhiyan (KUSUM) and Rs. 20,000 crore towards PM Surya Ghar Muft Bijli Yojana. The PM Surya Ghar Muft Bijli Yojana empowers people to install rooftop solar plants for 10 crore households, providing up to 300 units of free electricity monthly. This initiative, with over 1.28 crore registrations and 14 lakh applications, has driven rooftop solar capacity to 15.7 GW by December 2024. The PM KUSUM scheme, allocated Rs. 2,600 crore, aims to deploy 8 lakh solar pumps, reducing farmers’ reliance on fossil fuels and promoting sustainable agriculture.

Nuclear Energy:

The budget sets an ambitious target of 100 GW nuclear capacity by 2047, with Rs. 2,086 crore allocated for nuclear power projects in FY 2025-26. The Nuclear Energy Mission, with an outlay of Rs. 20,000 crore, focuses on R&D for Small Modular Reactors (SMRs), with plans to operationalize five indigenous Bharat SMRs (30-300+ MW capacity) by 2033.

Proposed amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act aim to enable private sector participation, addressing legislative barriers. The Nuclear Power Corporation of India Limited (NPCIL) will oversee project execution, while the Bhabha Atomic Research Centre (BARC) will lead R&D.

Self-Reliance and Domestic Manufacturing:

The National Manufacturing Mission, with an allocation of Rs. 100 crore for FY 2025-26, aims to boost domestic production of solar PV cells, wind turbines, batteries, and electrolyzers, aligning with the ‘Make in India’ vision. This mission supports MSMEs, recognized as key drivers of development, by enhancing supply chains and reducing import dependence.

The National Critical Mineral Mission, approved in January 2025 with an outlay of Rs. 34,300 crore over seven years, receives Rs. 410 crore for FY 2025-26. Duty exemptions on cobalt powder, lithium-ion battery scrap, lead, zinc, and 12 additional critical minerals (in addition to 25 minerals exempted in July 2024) lower input costs, secure raw material supply chains, and promote recycling. This strengthens India’s position in clean tech manufacturing and critical mineral availability.

Impact on the Transmission and Distribution (T&D) Sector The T&D sector, critical for renewable energy evacuation and grid reliability, benefits from significant budget allocations and policy reforms:

Grid Modernization and Loss Reduction:

The Government allocated Rs. 16,021 crore for FY 2025-26, focusing on prepaid smart metering, system metering, and infrastructure upgrades.

Transmission Capacity Expansion:

The budget’s focus on very high voltage transmission equipment under the National Manufacturing Mission strengthens domestic capabilities, reducing reliance on imports. Duty exemptions on critical minerals further support transmission equipment manufacturing.

Energy Efficiency and MSME Support:

An investment-grade energy audit of micro and small industries in 60 clusters is launched, with financial support for transitioning to cleaner energy and implementing efficiency measures. The scheme will expand to 100 clusters in the next phase, supporting MSMEs in decarbonization.

Company Overview

KEI Industries Limited (‘KEI’ or ‘the Company’), established in 1968, is a leading manufacturer of wires and cables (W&C) in India, with a growing global footprint. Headquartered in New Delhi, KEI operates through 34 branch offices and 26 warehouses across India, supported by a robust network of over 2,000 channel partners. The Company’s international presence spans more than 60 countries, catering to diverse markets with high-quality products and services. KEI is committed to delivering innovative, reliable, and cost-e_ective solutions, positioning itself as a trusted partner in the wires and cables industry.

The Company has six state-of-the-art manufacturing facilities located at Bhiwadi, Chopanki and Pathredi in Rajasthan and Rakholi & Chinchpada in Dadra and Nagar Haveli and Daman and Diu. Additionally, it has two plants in Harchandpur (Rajasthan) and Dapada (D&NH) dedicated to the backward integration of PVC compound. The Company is on track to add its seventh greenfield manufacturing plant at Sanand, Ahmedabad. The first phase of capex for the same will start by the end of September, 2025.

Countries	Branch
2,000+	26
Channel partners	Warehouses

KEI offers a comprehensive and diversified product portfolio that includes Low Tension (LT) Cables, High Tension (HT) Cables, Extra High Voltage (EHV) Cables, House Wires (HW), Winding Wires (WW), and Stainless-Steel Wires (SSW). These products serve critical sectors such as real estate, infrastructure, power generation and distribution, steel, fertilizers, refineries, transportation, and renewable energy. The Company’s ability to cater to both traditional and emerging industries underscores its adaptability and market leadership.

In addition to its core W&C offerings, KEI provides end-to-end Engineering, Procurement, and Construction (EPC) solutions. These include Gas-Insulated Substations (GIS), Air-Insulated Substations (AIS), Overhead and Underground Power Transmission and Distribution Systems, and turnkey substation projects. With a proven track record of timely and efficient EPC project execution, KEI has solidi_ed its reputation as a ‘one-stop solution provider’, delivering superior products and services that meet stringent quality and safety standards.

Product Portfolio

Cables

The Company’s wide product basket of cables finds downstream application across diverse sectors including power, oil and gas refineries, railways, automobiles, cement, steel, fertilizers, textiles and real estate, amongst others. These cables are crucial for supporting infrastructure projects and industrial growth, playing a vital role in electrification and communication, and enhancing operational efficiencies across various industries.

Further, specialized cables like Solar cables and Marine and offshore submersible cables are tailored to specific requirements. KEI boasts a diverse product portfolio and manufactures a broad spectrum of cables, including:

• Extra-High Voltage (EHV) cables

• 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 and offshore submersible cables

• Communication cables

• Thermocouple cables

• EV Charging cables and guns

• Flat cables

• ESP cables

• MVCC cables

• House wire

• Winding wires

• Stainless steel wires

• Medium voltage cover conductors

The Company has an early mover advantage in the EHV Cable Segment up to 400 kV through a collaborative technical partnership with Brugg Kabel, a Switzerland-based company. KEI has built strong pre-qualification credentials in the segment over the years and is now qualified to bid for EHV tenders. The company anticipates EHV cables demand in transmission and distribution to grow as they outperform conventional overhead lines. Furthermore, KEI has also fortified its presence in the EHV segment by pursuing forward integration through EPC project execution and backward integration with in-house PVC production.

EPC Projects

KEI Industries Limited delivers comprehensive Engineering, Procurement, and Construction (EPC) solutions, reinforcing its stature as a holistic provider in the power infrastructure domain. Specializing in turnkey projects, KEI executes Gas-Insulated Substations (GIS), Air-Insulated Substations (AIS), and Overhead and Underground Transmission and Distribution Systems with precision and efficiency. Leveraging its expertise in Extra High Voltage (EHV) cable integration, the Company caters to critical sectors such as utilities, renewable energy, and industrial infrastructure, with an order book of Rs. 435 crore as of March 31, 2025, executable over 12-24 months. KEI’s strategic focus on optimizing EPC operations ensures reliable project delivery, aligning with its commitment to quality and sustainable growth.

Business Segments Retail

KEI Industries Limited’s retail segment, encompassing household wires, Low Tension (LT) cables, and High

Tension (HT) cables, stands as a key pillar of its revenue and profitability. This segment benefits from superior profit margins, driven by KEI’s commitment to delivering high-quality products underpinned by a robust brand reputation cultivated over decades. Capitalizing on these strengths, KEI is strategically expanding its retail footprint through targeted marketing initiatives, high-impact sponsorships, and a reinforced dealership network. With 2,082 active dealers, 20,000+ retailers and influencers (2 lakh + electricians), the Company has further deepened its penetration across major metros, Tier 1, and Tier 2 cities, ensuring widespread accessibility and brand visibility. This continues to drive consistent growth, averaging more than 25% annually over the past few years. With a focus on innovation – such as fire-resistant and specialty cables developed through its NABL-accredited R&D facility — KEI is well-poised to sustain its retail momentum, delivering value to customers and shareholders alike.

Key highlights

The Company’s intensi_ed focus on the Retail segment yielded positive results. The segment recorded strong sales of Rs. 5,088 crore in FY 2024-25 compared to Rs. 3,770 crore in FY 2023-24. The Retail segment’s share of net sales increased to 52% in FY 2024-25 from 46% in FY 2023-24.

Institutional

The Company’s institutional segment specializes in providing premium-grade EHV cables, HT and LT cables, and stainless-steel wires, and executes comprehensive EPC projects on a turnkey basis. The segment encounters significant entry barriers due to high capital investment, technical expertise, a strong track record, and stringent compliance requirements for project acquisition. The Company has cultivated a formidable institutional business over time through a focus on excellence in products, advanced manufacturing facilities, consistent investment in R&D, and strategic marketing strategies. The institutional segment experiences robust demand from various industries including oil and gas, refinery, railways, metro rail projects, transmission, renewable energy projects, cement, steel, data centers, EV and real estate sectors.

Key highlights

The domestic institutional segment witnessed growth, achieving sales of Rs. 3,412 crore in FY 2024-25, compared to Rs. 3,297 crore in FY 2023-24, However, the segment’s share of net sales stood at 35% in FY 2024-25 compared to 40% in FY 2023-24.

Exports

KEI has solidi_ed its position as a global player in the wires and cables industry, with its export business thriving due to an innovative, high-quality product portfolio that meets rigorous international standards. Operating in over 60 countries and supported by offices in four strategic locations, KEI supplies Extra High Voltage (EHV), Medium Voltage (MV), and Low Voltage (LV) cables to key sectors, including oil and gas, renewable energy, and utilities. Key export markets include Australia, the United States, the Middle East (notably the UAE), Belgium, Nepal and Africa.

Key highlights+

Despite global economic challenges and geopolitical tensions, export sales surged to Rs. 1,267 crore in FY 2024-25, compared to Rs. 1,097 crore in FY 2023-24. The year saw KEI foray into the European and US markets, which is expected to drive the Company’s topline and margins in the foreseeable future. The contribution of exports to net sales was 13% in FY 2024-25. KEI aims to increase its export contribution to 15-18% of revenue over the next 3 years leveraging the upcoming Sanand facility’s EHV and

HVDC capabilities to meet global demand, reinforcing its reputation as a trusted partner in the international market.

Financial Performance

During the year, your Company’s net sales grew to

Rs. 9,735.88 crore as against Rs. 8,120.73 crore in FY 2023-24, recording a strong growth of 19.89%. The Company’s turnover from Cables & Wires segment stood at Rs. 9,176.96 crore compared to Rs. 7,335.76 crore in the previous year and turnover from Stainless Steel (SS) Wire segment was

Rs. 215.93 crore during FY 2024-25 as against Rs. 222.23 crore in FY 2023-24. Revenue from the EPC Projects segment (excluding cables) decreased from Rs. 562.74 crore in the last year to Rs. 342.98 crore in FY 2023-24. During the year under review, Profit after Tax (PAT) stood at Rs. 696.41 crore compared to Rs. 581.05 crore in the preceding year, indicating a YoY growth of 19.85%. Your Company’s EBITDA stood at

Rs. 1,062.76 crore as against Rs. 886.55 crore in FY 2023-24. Sales through the dealer network was Rs. 5,088 crore in FY 2024-25 as against Rs. 3,770 crore last year. The export sales stood at Rs. 1,267 crore as against Rs. 1,097 crore in the previous year, showing a growth of 15%.

Particulars	FY 2024-25	FY 2023-24	Explanation for change in the ratio by more than 25% as compared to the previous year
Debtor Turnover Ratio	5.87	5.59	NA
Inventory Turnover Ratio	6.34	6.64	NA
Inventory Coverage Ratio	17.84	18.79	NA
Current Ratio	4.18	2.58	improved due to fund raised through QIP
Debt Equity Ratio	0.03	0.04	improved due to fund raised through QIP
Operational Profit Margin	10.18%	10.52%	NA
Net Profit Margin	7.15%	7.16%	NA
Return on Net Worth	15.59%	20.26%	NA

Opportunities

KEI is well-positioned to capitalize on robust demand for wires and cables, driven by government initiatives in electrification, renewable energy, and T&D expansion, as outlined in the operating context. Increased focus on rooftop solar, EV charging infrastructure, 5G-driven telecom upgrades, and data centers further boosts demand for specialized cables, offering significant growth opportunities. Certifications in Europe and the USA, alongside an expanded network of dealers, enhance export potential and retail revenue, aligning with infrastructure development, urbanization, and the ‘China plus one’ strategy.

To read more about the opportunities and our response to it, please read operating context on pages 14-15.

Threats

KEI faces several threats including a global economic slowdown, higher inflation and trade disruption in West Asia impacting exports and supply chains. Fluctuations in exchange rates and costs of key raw materials impacting margins, intensi_ed competition in the wires and cables industry with the presence of multiple large established players and strong new entrants, delays in critical infrastructure projects due to CAPEX postponement and rapidly evolving technology and continuous upgrade requirements.

We are ready to face any potential competition in this highly fragmented industry, where impacts are distributed across players. KEI also benefits from its established presence, as new entrants face 3-5 year pre-qualification periods for institutional projects, providing a near-term competitive bu_er. The Company’s first-mover advantage with a diverse product portfolio further strengthens its position. Additionally, to address future risks, KEI is intensifying its focus on exports, enhancing resilience against domestic market volatility.

For more on risks and how KEI mitigates risk, read our risk management section on pages 26-27.

Outlook

The wire and cable industry in India is poised for sustained growth in the coming years following infrastructure development, renewable energy demand within India, as well as export demand. KEI is well prepared to capitalize on this trend. KEI manufactures a diverse range of cables, including EHV, HT, LT, as well as specialty cables for solar and EV applications. The Company’s strong financials and robust balance sheet has allowed it to embark on capacity expansions, including brownfield projects at Chinchpada and Pathredi and greenfield expansion at Sanand. This will empower the Company to meet the rising demand not just in domestic but also global markets. We are focusing on improving our global presence, targeting exports to contribute 15-18% of sales over the next three years. We are confident of achieving sustained growth and market leadership.

Risk Management

The Company is exposed to various risks and volatility in the external operating environment. It operates in a highly competitive environment and is also subject to both favorable and adverse macroeconomic conditions. It faces challenges such as sti_ competition from prominent players in the industry and talent acquisition and retention issues. Additionally, factors like foreign currency fluctuations, subdued global economic conditions, inflation, and geopolitical tensions, pose ongoing challenges.

Moreover, significant policy and regulatory challenges could impact the Company’s operations. The Company has established a comprehensive Risk Management Policy to ensure timely and effective identification, assessment, monitoring, and mitigation of potential risks impacting its operations. KEI’s dedicated Risk Management Committee conducts periodic reviews of the Company’s performance concerning key risks arising from a dynamic business environment as identified by management. This committee regularly devises robust mitigation strategies to address these risks.

For further details on Risks and Mitigation Plans, please refer to the ‘Risk Management’ chapter on pages 26-27.

Human Resources

KEI Industries Limited recognizes its employees as the cornerstone of its success, driving innovation, operational excellence, and market leadership in the wires and cables industry. The Company’s human resource (HR) strategy is anchoredinprogressive,employee-centricpoliciesdesigned to cultivate a skilled, diverse, and engaged workforce. By building a workplace that champions professionalism, inclusivity, and continuous learning, KEI empowers its people to thrive in a dynamic global market while aligning their growth with the Company’s long-term vision.

To build a future-ready workforce, KEI invests significantly in talent development through structured training programs that enhance technical pro_ciency, leadership capabilities, and behavioral competencies. KEI promotes a culture of recognition and meritocracy, celebrating outstanding contributions through rewards and career advancement opportunities.

The Company’s permanent employee strength stood at 2,050 as on March 31, 2025.

For more details on human resources, please refer to the ‘Human Capital’ chapter of on pages 38-45.

Environment, Health and Safety (EHS)

KEI Industries Limited has established a robust Environment, Health, and Safety (EHS) framework, embedding rigorous standards and protocols across its operations to uphold safety, sustainability, and employee well-being. Aligned with global benchmarks, the Company has integrated stringent safety measures into every phase of its manufacturing processes across all facilities, from Bhiwadi, Silvassa to new greenfield Sanand plant (under construction, so modify language). KEI’s EHS management system proactively identifies workplace hazards, mitigates risks, and minimizes incidents and exposure to harmful conditions, reflecting a commitment to operational excellence. Throughout the fiscal year, the Company conducted extensive employee training sessions to reinforce a safety-first culture, drawing inspiration from industry leaders like Nexans and Southwire, who prioritize workforce protection as a cornerstone of sustainable growth. These efforts underscore KEI’s dedication to fostering a secure and healthy work environment.

For more details on EHS, please refer to the ‘Human Capital’ chapter on pages 38-45.

Internal Control System 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 Company’s 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

TheManagementDiscussionandAnalysismaycontainsome statements describing the Company’s views of the industry, objectives, projections, estimates or expectations, which may be ‘forward-looking statements’ within the meaning of applicable securities laws and regulations and are based on informed judgments and estimates. Actual results may differ substantially or materially from those either expressed or implied in the Statement depending on various factors that could affect the Company’s business and financial performance such as macroeconomic, demand and/or price conditions in the market, interest rate movements, competitive pressures, technological and legislative developments, changes in government regulations, tax laws and other statutes and incidental factors. The Company undertakes no responsibility to publicly amend, modify or revise any forward-looking statements, whether as a result of any subsequent developments, new information, future events, or otherwise.