KSH International Ltd Management Discussions

KSH GROUP

KSH Group is an enterprise built on the movement of goods, the development of infrastructure and the support of industrial activity. With more than five decades of domain experience, the Group operates businesses that support Indias manufacturing and supply chain ecosystem across KSH International, KSH Distriparks, KSH Logistics, and KSH Infra.

Its presence spans inland container handling, integrated logistics, industrial parks, warehousing, services and distribution, as well as the manufacturing of magnet winding wires, creating a platform that connects production, storage, movement and market access. At its core, KSH Group exists to make industry flow better.

Founded in 1979 and operational since 1981, KSH International Limited (KSH International or The Company) has spent over four and a half decades focused on a single discipline: manufacturing winding wires that form a critical part of transformers, motors and electrical equipment. Today, the Company produces a comprehensive range of magnet winding wires serving diverse end-use industries across India and internationally.

VISION

While sustaining our current leadership position in manufacturing of magnet wires, we aim to be a global leader and preferred partner providing customised solutions across industry segments.

MISSION

Building on our scientific, technical & commercial expertise, we will provide innovative Wires, Cables, & Customized Solutions for Automotive, Power, Consumer Durables and all other Electrical Industries to create ever increasing value to our customers, shareholders and employees.

KSH CORE— I VALUES

KSH International is resolutely steered by a quintet of unwavering core values that serve as the foundation of its identity and operations.

? Integrity: Conducting our business ethically with complete transparency.

? Customer Delight: Enhancing the quality & value of our products and services through ongoing and cost- effective innovation.

Excellence: Striving to achieve the highest possible standards in our day-to-day work and in the quality of products we manufacture.

Empowerment: Fostering a culture that encourages delegation, risk-taking, speed of response, accountability and partnership to adapt effectively to an uncertain and rapidly changing world.

Respect for People: Encouraging people to exercise creativity and leadership, giving them opportunities to realise their full potential.

Year at a Glance

31,070 Million Revenue from Operations

+61.13% YoY

43,445 MTPA Total Installed Capacity (March 2026)

Leading Exporter of Magnet Winding Wires from India (CARE 2025)

24 Countries of Export

120+ Active Customer Accounts (2025-26)

45+ Years of Manufacturing ExcellenceAGEMENT DISCUSSION AND ANALYSIS

Global Economic Overview

In its April 2026 reference scenario, the IMF projected global growth at 3.1% in 2026 and 3.2% in 2027, below the recent average of around 3.4% recorded in 2024-25 due to geopolitical tensions, trade restrictions, volatile commodity prices and tighter financial markets. The global economy remains in a phase where growth is being supported more by selective regional resilience than by broad-based momentum.

Indian Economic Overview

India remained among the fastest growing major economies in 2025-26. The Economic Survey 202526 placed real GDP growth for 2025-26 at 7.4% and GVA growth at 7.3%, supported by consumption and investment. Private final consumption expenditure grew by 7.0% and reached 61.5% of GDP, while gross fixed capital formation grew by 7.8%.

The Survey projected 2026-27 real GDP growth in the range of 6.8% to 7.2%, reflecting continued confidence in Indias domestic growth drivers. Consumption, infrastructure spending and services activity are expected to support momentum, while rural demand and investment revival may add further depth. Indias growth profile is also being supported by higher formalisation, digital payments, public infrastructure creation and manufacturing-led policy support.

However, the pace of growth will remain sensitive to global trade conditions, commodity price movement, capital flows and private sector investment.

Global Magnet Winding Wire Market

The magnet wire industry is a key part of the global electrical and electronics value chain, supplying critical inputs for motors, transformers, generators, compressors, automotive components, appliances, industrial equipment and renewable energy systems. Demand is driven by electrification trends, including electric vehicles, power infrastructure, energy-efficient motors, automation and renewable energy adoption.

As industries prioritise efficiency, compact design and electrical performance, demand for high-quality magnet wire is expected to remain resilient. The global magnet wire market is estimated at USD 36.66 Billion in 2025 and is expected to reach USD 38.51 Billion in 2026.

It is projected to grow to USD 49.27 Billion by 2031, registering a CAGR of 5.05% during 2026-2031.

Market growth is being driven by rising demand from electric motors, transformers, generators, consumer appliances, automotive components, AI data centres and renewable energy systems. The increasing adoption of electric vehicles and energy-efficient electrical equipment is also creating strong demand for high- performance magnet winding wires with improved thermal resistance, conductivity, and durability. Additionally, rapid industrialisation, grid modernisation, and expansion of power infrastructure in emerging economies are supporting market expansion. Copper winding wire remains the preferred choice for applications requiring higher electrical conductivity, while aluminium wire offers a cost-effective alternative across select applications. The choice between the two depends on performance, design and cost considerations, with aluminium solutions typically requiring higher material volume and appropriate conductor sizing.

India Magnet Winding Wire Market

Bonafide Research estimates Indias magnet wire market to exceed USD 2.60 Billion by 2030. The market is expected to benefit from Indias expanding electrical and electronics manufacturing base, along with rising demand for electric motors, transformers, pumps, compressors and household appliances.

Growth is also being supported by investments in power transmission and distribution infrastructure, renewable energy projects, railway electrification and industrial automation. Government initiatives such as Make in India and production-linked incentive schemes are further encouraging local production of electrical components and equipment. In addition, BIS standards are playing an important role in encouraging companies to manufacture in India, making import substitution a meaningful opportunity for domestic players. Copper magnet wires remain preferred over aluminium due to their high conductivity and reliability.

Indian Power Sector

Indias power sector continues to expand on the back of rising electricity consumption, industrialisation, urbanisation, renewable energy capacity addition and sustained infrastructure spending. In 2025-26, India added 52,537 MW of generation capacity until January 31,2026, including 39,657 MW from renewable energy, taking the countrys total installed power generation capacity to 520.51 GW, as per the Ministry of Power. This continued expansion, along with investments in substations, transformers and high- capacity transmission corridors, supports demand for transformers, motors, grid equipment and winding wires. The transition towards renewable power is expected to be a key driver of transmission capex, as renewable generation is often located far from major demand centres. India is expected to add around 450 GW of generation capacity over 2025-30, with renewable capacity share in the installed mix expected to rise from 34% to around 51% by 2029-30. To support this transition, transmission capex is estimated at 9.1 Trillion over 2022-32.

Impact on the Power Sector

Indias power sector is entering a decisive growth phase, supported by rising electricity consumption, rapid renewable energy addition, grid modernisation and large-scale investments in transmission and distribution infrastructure. As the country moves towards a more electrified, renewable-heavy and high-voltage power system, the need for transformers, substations and grid-stabilisation equipment is increasing meaningfully. This creates a direct downstream opportunity for winding wire companies, as products such as enamelled copper wires, CTC, PICC and wrapped rectangular conductors are critical inputs in transformer manufacturing. Consequently, the power-sector upcycle is expected to drive higher volumes, better order visibility, greater demand for value-added products and increased technology requirements for winding wire manufacturers.

Demand For Specialized High-Value Products

Rising transformer demand is increasing the need for high-value winding wires such as CTC and PICC, which are critical for large power transformers, high-voltage systems and efficient grid infrastructure.

Large Addressable Market

The domestic market for specialized winding wires is expected to expand significantly, supported by transformer capacity additions, renewable energy evacuation, substation growth and rising demand from transmission and distribution equipment manufacturers. Indian transformer OEMs are expected to nearly triple capacity to 300 GVA by 2027-28, with CG Power expanding 3.4 times to 85 GVA and Hitachi Energy and Siemens Energy doubling their existing footprints. This expansion aligns with Indias 9.1 Trillion transmission capex plan to support a 43% renewable energy share by 2031-32.

Capacity Expansion and Stronger Order Visibility

Winding wire companies are likely to expand manufacturing capacities to meet growing transformer- sector demand, supported by strong order books of 700 Billion through 2026-27, higher utilisation levels and long-term visibility from power infrastructure projects.

High Entry Barriers

The industry has significant entry barriers due to precision manufacturing, strict quality requirements and long customer-approval cycles, particularly for 765 kV and HVDC applications, benefiting established and qualified suppliers.

Electric Vehicle Sector

Coming off a small base, Indias EV industry is expected to remain in a high-growth phase, supported by improving consumer acceptance, wider model availability, expanding charging networks, fleet electrification, localisation of components, and policy focus on cleaner mobility. Indias electric vehicle market has moved from early adoption to scale-up. In 2025-26, EV sales reached about 25.5 Lakh units, up 25.02% year-on-year, showing steady demand despite subsidy changes. Indias EV market is estimated at USD 18.79 Billion in 2025 and USD 31.09 Billion in 2026. It is predicted to be worth around USD 1,283.08 Billion by 2035, growing at a solid CAGR of 52.56% from 2026 to 2035. The market is expected to expand strongly as adoption spreads beyond two-wheelers and three-wheelers into passenger cars, buses, and commercial fleets.

Key Growth Drivers of EV Sector

The growth of the EV sector is fuelled by a confluence of environmental concerns and aggressive government intervention:

Government Initiatives: Key schemes such as the National Electric Mobility Mission Plan (NEMMP) and the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II) are critical in accelerating adoption.

Financial Support: The Electric Mobility Promotion Scheme 2024 (EMPS 2024), with an allocation of 7,780 Million, specifically aims to boost domestic EV manufacturing and adoption.

Incentives: The Production Linked Incentive (PLI) scheme further encourages local manufacturing of EVs and advanced chemistry cell (ACC) batteries, enhancing the cost-competitiveness of Indian manufacturers.

Operational Benefits: Beyond policy, EVs offer lower operating and maintenance costs and significantly higher energy efficiency compared to internal combustion engine (ICE) vehicles.

Impact on the Magnet Winding Wires Industry

The transition to electric mobility is a major catalyst for the magnet winding wire industry, as EVs require a substantially higher use of these components compared with conventional vehicles. With rising penetration of electric two-wheelers, three-wheelers, passenger vehicles and buses, demand for motor-driven electrical systems is expected to increase steadily, creating a larger addressable market for magnet winding wire manufacturers.

Traction Motors: Magnet winding wires are critical components in EV traction motors, which convert electrical energy into mechanical energy for propulsion. As EV platforms evolve towards higher efficiency, improved torque density and longer operating life, the quality and performance of winding wires become increasingly important.

Component Volume: The total number of traction motors in the Indian EV segment, including 2W, 3W, 4W and buses, reached 4.95 Million as of recent counts. This growing motor base indicates strong downstream demand for winding wires, especially as EV production scales and domestic component localisation gathers pace.

Specialized Requirements: Electric three- wheelers and four-wheelers increasingly require application-specific round and rectangular enamelled magnet winding wires to support compact motor design, thermal performance, electrical efficiency and durability. As OEM programmes progress and volumes scale, these segments are expected to drive future demand for specialized winding wires.

Indian Compressor Market

Compressors are widely used in manufacturing, HVAC and refrigeration, oil and gas, power, chemicals, food processing, healthcare, automotive and infrastructure sectors. Indias compressor market is expanding steadily, supported by industrialisation, infrastructure development and demand for energy-efficient equipment. For 2024-25, the broader Indian compressor market can be estimated at around USD 2.0-2.1 Billion, based on P&S Intelligences estimate of USD 1.87 Billion in 2023 and a projected 6.6% CAGR during 2024-2030.

By 2025-26, the market could reach around USD 2.2-2.3 Billion, assuming a similar growth trajectory.

Growth Drivers

The demand for compressors is being supported by a combination of climatic, socio-economic, policy and consumption-led factors, especially across air conditioning, refrigeration and appliance applications.

* Environmental Factors: Rising summer

temperatures and longer heatwave periods are increasing the need for air conditioning across residential, commercial and institutional spaces. This is directly supporting demand for compressor-based cooling systems.

* Socio-Economic Shifts: Higher disposable incomes, easier access to consumer financing and the growth of nuclear families are driving purchases of independent household appliances. As more households invest in ACs, refrigerators and other cooling products, compressor demand is expected to rise steadily.

* Government Policy: Energy-efficiency initiatives such as the BEE Super-Efficient Equipment Program (SEEP) are encouraging manufacturers to introduce efficient appliances and components. This is supporting the use of advanced technologies such as BLDC motors in compressors, improving performance and reducing energy consumption.

* Urbanisation and Rural Penetration: Rapid urbanisation is expanding demand for cooling and refrigeration solutions across homes, offices, retail outlets and commercial establishments. At the same time, refrigerators are increasingly shifting from a discretionary product to a basic household necessity in rural and semi-urban markets, widening the overall market footprint.

Impact on Magnetic Winding Wire Industry

The growth in Indias compressor market has a positive impact on magnet winding wire companies, especially those supplying enamelled copper and aluminium wires used in compressor motors for air conditioners, refrigerators, commercial cooling equipment and electric vehicles.

* Higher Demand from Cooling Appliances

Growth in air conditioners and refrigerators directly increases compressor production, as compressors are the core component in these appliances. This supports higher demand for enamelled copper and aluminium winding wires used in compressor motors.

<? Expansion of Commercial and Industrial Applications

Rising demand from QSRs, food delivery, retail chains, cold chains and industrial compressors create additional opportunities beyond household appliances. These applications require durable and reliable winding wires for continuous-duty compressor motors.

* Shift towards Energy-efficient Technologies

Inverter compressors, BLDC motors and energy- efficient appliances require high-quality magnet winding wires with better insulation, thermal resistance and performance consistency. This can improve the product mix for technically capable winding wire manufacturers.

* Import Substitution and Localisation Opportunity

Indias high dependence on imported AC and compressor components creates a domestic manufacturing opportunity. Local winding wire companies can benefit as appliance and compressor OEMs increase sourcing from Indian suppliers.

* New Growth from EV Compressors

Electric vehicles require compact and efficient compressors for air conditioning and thermal management systems. This creates an emerging opportunity for standard winding wires designed for high-temperature, high-efficiency and space- constrained motor applications.

<? Improved Utilisation, with Margin Risks

Rising demand can improve capacity utilisation and operating leverage for winding wire companies. However, profitability will depend on copper and aluminium price pass-through, customer contracts, product mix and working-capital discipline.

Company Overview

KSH International Limited (KSH International or The Company) is Indias leading manufacturer of specialized magnet winding wires, with a history dating back to 1979. The Company is engaged in manufacturing a wide range of products, including continuously transposed conductors, rectangular enamelled copper and aluminium magnet winding wires, bunched paper- insulated copper magnet winding wires, paper-insulated rectangular copper and aluminium magnet winding wires, and round enamelled copper and aluminium magnet winding wires. These products form critical inputs for transformers, motors, alternators and generators, making the Company closely aligned with the growth of Indias power, electrical equipment and industrial infrastructure sectors.

KSH International is the leading manufacturer of specialized magnet winding wires in terms of production capacity and the largest exporter of magnet winding

wires from India in terms of export revenues. Its products serve applications across power generation, transmission and distribution, as well as sectors such as renewable energy, railways, industrials, automotive, home appliances, refrigeration and air conditioning.

The Company exports specialized winding wires to 24 countries across five continents.

The Company operates four manufacturing facilities in Maharashtra, including facilities at Taloja, Chakan (two) and Supa. With its capacity expansion at Supa and planned investments in machinery, rooftop solar power generation and backward integration, KSH International is positioning itself to meet rising demand from transformers, motors, grid equipment and other electrification-linked applications. Backed by longstanding customer relationships, technical capabilities and product approvals, the Company continues to focus on quality, scale, export growth and participation in Indias expanding electrical manufacturing ecosystem.

Product Portfolio

KSH Internationals product portfolio is centred around magnet winding wires, which are critical components used in transformers, motors, alternators and generators. The Companys offerings are broadly divided into Specialized Magnet Winding Wires and Standard Magnet Winding Wires, addressing requirements across power, mobility, industrial, electrical and consumer application segments.

Specialized Magnet Winding Wires

This is the Companys largest product category and includes technically advanced winding wire products used in high-performance and mission-critical applications. The key products in this segment include:

* Continuously Transposed Conductors

m Rectangular Enamelled Copper and Aluminium Magnet Winding Wires

* Bunched Paper Insulated Magnet Winding Copper Wires

* Paper Insulated Rectangular Copper and Aluminium Magnet Winding Wires

These products are primarily used in the power generation, transmission and distribution ecosystem, as well as in industrial and mobility-linked applications. Key end-use applications include HVDC transformers, 765 kV transformers and reactors, power transformers, distribution transformers, traction transformers, loco- traction transformers, traction motors for EVs, wind generator rotors and stators, hydro generators, DG set alternators and electric motors.

Standard Magnet Winding Wires

The standard magnet winding wire portfolio includes products used across relatively broader and higher- volume applications. The key products in this category include:

Round Enamelled Copper Magnet Winding Wires

?b Round Enamelled Aluminium Magnet Winding Wires

These wires cater to applications across traction motors, auto electricals, EV components, hermetic compressors, home appliances, motors and alternators, and switchgear. This segment enables the Company to participate in demand from automotive electrification, industrial equipment, consumer durables and general electrical applications.

Portfolio Positioning

Overall, KSH Internationals portfolio places the Company at the intersection of power infrastructure, industrial electrification, mobility and consumer electricals. While specialized magnet winding wires form the core of its revenue base, standard magnet winding wires provide access to wider industrial and consumer-led demand. This balanced portfolio enables the Company to serve both large-scale infrastructure applications and recurring demand from motors, appliances, compressors, switchgear and automotive systems.

Key Developments during 2025-26

Expansion of Manufacturing Capacity

2025-26 marked a major capacity expansion year for KSH International. The Company completed Phase I of its Supa facility at the end of September 2025, adding 12,000 MTPA of capacity across specialised and standard magnet winding wires. During Q3 2025-26, it added a further 2,400 MTPA of specialised winding wire capacity at Supa, taking total installed capacity to 43,445 MTPA as of March 31,2026, compared with 29,045 MTPA a year earlier. The Company is further expanding capacity to 59,045 MTPA over the course of 2026-27.

Supa Facility Ramp-up

The Supa facility became an important operational development during the year. The Companys installed capacity stood at 43,445 metric tonnes as of March 31,2026, and is expected to increase to approximately 59,000 metric tonnes upon completion of Phase II of the Supa expansion. In its first three months of operations, the facility achieved over 50% utilisation, while consolidated utilisation stood at 68% in Q3 2025-26 and 72% in Q4 2025-26 following the rapid addition of new capacity. The newly available capacity has allowed the Company to accelerate growth in both specialized and standard wires, while also driving higher export growth.

Entry into EV High-Performance Wire Opportunity

The Company entered into an exclusive licence agreement with HPW Metallwerk GmbH to manufacture and sell globally patented Extruded PEEK high-performance wires for EV traction motor applications in the Indian EV market. This development gives KSH International an entry point into next-generation EV traction motor wire applications, particularly as higher-voltage EV platforms develop in India.

One other key development to include, is the award of 37 HVDC transformers, the first HVDC orders received in several years, but one where momentum is expected to increase as new renewable energy projects start to get connected to the grid.

Capacity and Utilisation

During 2025-26, KSH International strengthened its manufacturing base with the commissioning and ramp-up of capacity at its Supa facility. The Companys installed capacity increased from 29,045 MTPA to 43,445 MTPA during the year, representing a growth of 49.58% over the previous capacity base. This expansion enhanced the Companys ability to address growing demand across specialized and standard magnet winding wires, particularly from transmission and distribution, renewable energy, railways, data centres, EV and industrial applications, as well as exports.

With the new capacity becoming available during the year, blended utilisation at annual capacity stood at ~ 67% in 2025-26.

Raw material procurement

During 2025-26, copper continued to be KSH Internationals primary raw material, along with a minimal amount of aluminium, supported by insulating materials such as enamel and paper, and packaging materials. Copper procurement was undertaken on a back-to-back basis under which the Company procures the specific quantity of copper required in a customer purchase order, with its supplier on the same day, setting the raw material price for that particular order. This mechanism reduces exposure to raw material price volatility, although movements in copper prices continued to influence reported revenue and percentage margin without impacting absolute profitability. During the year, the Company procured raw materials from a mix of domestic and international suppliers, with the top 10 suppliers contributing approximately 98% of total raw material and component purchases. The Company did not have long-term agreements with raw material suppliers but continued to maintain long-standing relationships with most of its major suppliers.

Revenue-wise Sectoral Mix, 2025-26

KSH Internationals revenue profile in 2025-26 continued to remain closely aligned with the power sector, comprising applications across power generation, transmission and distribution. During the year, the power sector contributed ~75% of the Companys operating revenue. This reflects the critical role of the Companys magnet winding wires in transformers, reactors, generators and other electrical infrastructure equipment, which are essential to Indias expanding grid, electrification and power equipment ecosystem.

The remaining revenue was contributed by other end-user industries, including industrials, automotive, electric vehicles and ICE applications, home appliances, refrigeration and air conditioning. In 2025-26, these sectors together contributed ~25% of operating revenue. This segment is supported by the Companys product applications across motors, alternators, compressors, switchgear, appliances and mobility- linked electrical systems, enabling KSH International to participate in a broader range of industrial and consumer-led demand opportunities.

Financial Performance

The Company reported revenues of 31,070 Million in 2025-26, up from 19,283 Million in 2024-25, supported by strong export growth increasing to 8,234 Million from 5,904 Million in the previous year.

EBITDA, excluding other income, stood at 1,905 Million in 2025-26, compared to 1,225 Million in 2024-25. Depreciation increased due to new capacities, while interest costs were higher owing to increased utilisation of working capital on account of the inflating London Metal Exchange (LME) rate of copper, depreciation of the rupee vis-a-vis USD and Euro and increased levels of operations.

Revenue from Operations

Revenue from operations for 2025-26 stood at 31,070 Million, compared with 19,283 Million in 2024-25, representing a growth of 61.1%. Growth during the year was supported by higher sales volumes following the commissioning and ramp- up of the Supa facility, continued demand from transmission and distribution customers, higher contribution from specialized magnet winding wires, export growth and pass-through of copper prices to customers. The Companys revenue performance also reflected a favourable product mix, with specialized winding wires contributing 75% of revenue, supported by CTC demand, HVDC-related supplies and higher- value transformer applications.

Financial Metric	2025-26	2024-25	Change (%)
Revenue from Operations ( Million)	31,069.71	19,282.93	61.13%
EBITDA ( Million)	1,904.84	1,225.33	55.46%
EBITDA Margin (%)	6.13%	6.35%	(0.22%)
Profit After Tax ( Million)	1,101.26	679.88	61.98%
Earnings Per Share (EPS) ()	18.38	11.97	53.63%

Key Financial Ratios

Financial Ratio	2025-26	2024-25	% Change	Reason for Deviation (+/- 25%)
Debtors Turnover Ratio	11.16	10.07	10.82%	-
Inventory Turnover Ratio	8.76	9.97	(12.14%)	-
Interest Coverage Ratio	4.31	4.23	1.97%	Repayment of debt using IPO funds and an increase in shareholders funds
Current Ratio	1.86	1.48	25.68%	Ability to meet its shortterm obligations using its short-term assets
Debt-to-Equity Ratio	0.39	1.21	(67.77%)	Repayment of debt using IPO funds and increase in shareholders funds
Operating Profit Margin	5.42%	5.63%	(2.68%)	-
Net Profit Margin	3.54%	3.53%	0.28%	-
Return on Net Worth	19.90%	25.68%	(22.51%)	Increase in shareholders funds on account of IPO

Export Product Mix

KSH Internationals export portfolio is led by specialized magnet winding wires, particularly Continuously Transposed Conductors (CTC) and Paper Insulated Copper Conductors (PICC), which are used in power transformers and other transmission and distribution applications. The Companys export business is closely aligned with transformer OEM demand. all exports are made to transformer companies across 24 countries. This positions exports around technically demanding products where customer approvals, product reliability, process precision and a long operating track record are critical.

Key Export Geographies

The Middle East

The Middle East, including the UAE and Saudi Arabia, is part of KSHs export base and accounts for about 12% of total revenue 2025-26. Regional demand is supported by power infrastructure investments, grid strengthening, renewable additions and industrial expansion, creating opportunities for quality-certified transformer wire suppliers.

Americas

The United States remains an important export market for KSH International, contributing about 8% of total revenue in 2025-26. Demand is supported by sustained investment in grid modernisation, renewable energy integration, replacement of ageing electrical infrastructure and rising electricity requirements from data centres. The market also presents opportunities for suppliers capable of meeting specialised product, quality and delivery requirements.

Europe

Europe, including Germany, forms part of KSHs export footprint. The Companys customer approvals and transformer OEM relationships support its presence in the region, where demand is linked to grid investments, renewable integration and power infrastructure upgrades.

Risk Mitigation Strategies

KSH International Limited identifies several internal and external risks associated with its business and has implemented various strategies to mitigate them as detailed below:

Risk Identified	Mitigation Strategy
High Client Concentration: The top 10 customers contributed 50% of operating revenue in Fiscal 2025-26.	The Company is actively diversifying its revenue base by expanding into high-growth sectors like Electric Vehicles (EV) and increasing its global reach across 24 countries. It also focuses on cross-selling specialized products to different divisions of existing customers to increase wallet share as well as adding new customers and countries.
Raw Material Price Volatility: Prices of primary materials like copper and aluminium are subject to global market fluctuations.	The Company utilises a back-to-back order placement model, where copper is booked against confirmed customer orders, effectively passing LME price variations and exchange rate fluctuations directly to the client.
High Working Capital Requirements: Significant growth has led to negative operating cash flows and stretched working capital cycles.	Management is shifting its procurement strategy from 100% advance payments to purchasing copper on credit terms from suppliers. This is intended to increase payable days and reduce overall working capital days to sustainable levels.
Dependence on Power Sector: A substantial portion of revenue is derived from the power sector.	The Company is strategically targeting expansion into higher value-added segments beyond traditional power transformers, including EV traction motors and international markets.
Foreign Exchange Risk: Revenue from exports and costs of imported machinery are influenced by USD, EURO, and SEK fluctuations.	The Company maintains a foreign exchange risk management policy to monitor exposures and enters into forward hedging contracts to mitigate potential losses.
Debt and Interest Burden: High indebtedness previously impacted the debt-to-equity ratio and interest margins.	KSH utilised 225.98 Crore from its IPO proceeds to repay long-term and short-term borrowings, significantly improving its debt-to-equity ratio and reducing recurring interest expenses.
Operational and Technical Risks: Manufacturing involves hazardous materials and specialized technical know-how.	The Company maintains strict employee safety manuals, periodic hazard assessments, and robust IT security. To protect intellectual property, it uses confidentiality clauses in employment contracts and registered trademarks.
Quality and Regulatory Compliance: Failure to meet stringent standards could lead to order cancellations or license revocations.	KSH holds multiple international quality certifications (ISO, IATF) and undergoes rigorous third-party audits and pre-qualification evaluations required by major global OEMs.

Human Resources Workforce Composition

As of March 31,2026, KSH International employed 226 full-time employees. The workforce is predominantly technical: process engineers, quality control technicians, maintenance engineers, plant operators, and production supervisors. The commissioning of Supa required the recruitment and induction of a new cohort of plant operators and technicians.

Learning, Development and Technical Training

Technical training at KSH covers three primary domains: process engineering (wire drawing, enamel coating, paper lapping, CTC transposition), quality systems (dimensional testing, electrical testing, customer specification compliance), and safety (ISO 45001 requirements, emergency procedures, PPE use).

Each domain has a structured training programme for new hires and a continuous skills refresh for experienced personnel.

The PEEK wire development programme with HPW Metallwerk will require a new category of technical training for our engineering team, covering PEEK polymer behaviour at elevated temperatures, extrusion coating processes, and EV OEM qualification standards. This investment in human capital is as important as the physical machinery investment.

Internal Control Systems and Their Adequacy

The Company has an internal control framework appropriate to the scale, nature and complexity of its operations. The framework covers procurement, inventory management, material flow tracking, production processes, quality checks, sales, receivables, treasury, foreign exchange exposure and statutory compliance.

Given the commodity-linked nature of the business, the Company places emphasis on segregation of duties, approval-based transactions, periodic reconciliations, inventory controls, material movement tracking and independent reviews. Its ERP-enabled systems support the accuracy of financial reporting, operational monitoring, material traceability and compliance documentation.

The Company also undertakes periodic audits and management reviews to assess the adequacy and effectiveness of internal controls. Observations arising from such reviews are evaluated and addressed through corrective actions. The internal control systems are reviewed by the management and Audit Committee to support financial integrity, regulatory compliance and operational discipline.

Cautionary Statement

The Company may, from time to time, make additional written and oral forward-looking statements, including statements contained in the Companys filings with BSE and NSE and the reports to shareholders. The Company does not undertake to update any forward-looking statements that may be made occasionally by or on behalf of the Company. The Company does not accept any liability whatsoever for any loss, howsoever arising, from any use or reliance on this Annual Report or its contents or otherwise arising in connection therewith.