M Tek Copper Ltd Management Discussions

> Description of Business

M Tek Copper Limited (Erstwhile Madhav Copper Limited) is manufacturing in the field of Copper Bus bar, Copper Rod, Copper fabricated products, Enamelled Copper Wire, Paper covered Copper conductor, Poly wrap Submersible winding wire, Fiberglass Copper conductor, Tapped insulated Copper conductors, Bare copper wire and Copper Strips.

1. Industry Structure and Development

Copper continues to be one of the most strategically important industrial metals owing to its superior electrical conductivity, thermal efficiency, corrosion resistance and recyclability. The global transition towards clean energy, electrification, digital infrastructure and sustainable development has significantly strengthened long-term demand for copper.

During FY 2025-26, the global copper industry experienced robust demand supported by investments in renewable energy projects, electric vehicles (EVs), power transmission networks, data centers, artificial intelligence infrastructure and urban development. At the same time, the industry witnessed supply-side challenges arising from geopolitical uncertainties, logistics disruptions, mining constraints, fluctuating treatment and refining charges and volatility in international commodity prices. Despite these short-term challenges, the long-term outlook for copper remains favourable due to structural demand growth associated with global decarbonisation initiatives.

India continues to be one of the fastest-growing copper consuming economies. Government initiatives such as "Make in India", Production Linked Incentive (PLI) schemes, expansion of renewable energy capacity, Green Hydrogen Mission, Smart Cities, railway electrification, power transmission projects, electric mobility and large-scale infrastructure development are expected to substantially increase domestic copper consumption in the coming years.

The approval of new Indian refined copper brands on international exchanges and continuing investments in domestic smelting and downstream manufacturing are expected to strengthen Indias position in the global copper value chain.

2. Global Economic Overview

The global economy demonstrated resilience during the year despite persistent inflationary pressures, elevated interest rates in several developed economies and ongoing geopolitical tensions. Industrial activity remained stable across major economies, while demand for critical minerals continued to rise.

Copper prices remained volatile throughout the year due to changing global supply-demand dynamics, mining disruptions, freight costs and geopolitical developments. However, increasing investments in energy transition technologies and digital infrastructure continue to support a positive long-term demand outlook for copper.

The global economy during FY 2025-26 remained resilient despite continuing geopolitical tensions, elevated interest rates in major economies, and uneven growth across regions. According to estimates published by international financial institutions, global GDP growth for calendar year 2025 is expected to remain in the range of 3.0%-3.3%, supported by improving consumption, gradual moderation in inflation, and sustained public investment in infrastructure and clean energy.

The year was characterised by three major global economic themes:

• Disinflation with cautious monetary easing

• Large-scale investment in energy transition and electrification

• Reconfiguration of global supply chains and industrial production networks

These developments have significant implications for the copper industry, as copper remains one of the most critical industrial and strategic metals used in power transmission, renewable energy systems, electric vehicles, electronics, telecommunications, and industrial automation.

Governments worldwide are expected to continue investing heavily in electricity networks, renewable energy, transportation electrification, smart cities, data centres, and industrial automation.

The rapid expansion of electrification infrastructure is expected to create sustained long-term demand for copper bus bars, rods, strips, conductors, transformer components, winding wires, and other engineered copper products.

Copper is increasingly recognised as a critical mineral for the global energy transition. Demand growth is expected to accelerate as economies move toward net-zero emissions and electrified transportation systems.

Industry studies suggest that global copper demand could increase by more than 55% between 2025 and 2040, while new mine development remains relatively constrained. This structural imbalance may support long-term investment opportunities for copper manufacturers and value-added processors.

Under an accelerated global decarbonisation scenario, copper demand could approach 48 million tonnes by 2040, creating substantial opportunities for high-quality copper busbars, conductors, winding wires, and engineered copper products.

The future global economic environment presents significant opportunities for the Company.

With its focus on value-added products, operational excellence, technological upgradation, export market development, and sustainable manufacturing practices, the Company is well positioned to participate in the emerging global growth opportunities and create sustainable value for stakeholders over the coming decades.

3. Indian Economic Overview

India is expected to remain one of the fastest-growing major economies over the medium to long term, supported by strong domestic consumption, rising urbanisation, expanding infrastructure investment, digital transformation, and a favourable demographic profile. The Indian economy is increasingly being driven by manufacturing, infrastructure creation, renewable energy, transportation electrification, and technology-enabled industrial development, which together provide a strong foundation for sustained industrial growth.

India remained among the fastest growing major economies during FY 2025-26, supported by strong domestic consumption, increased capital expenditure by the Government, infrastructure development and improving manufacturing activity.

Growth in sectors such as:

• Power Generation & Transmission

• Renewable Energy

• Electric Vehicles

• Railways

• Construction

• Real Estate

• Defence Manufacturing

• Electronics Manufacturing has resulted in sustained demand for copper and copper-based products.

Government emphasis on localisation, infrastructure investment and manufacturing competitiveness is expected to provide long-term opportunities for domestic copper manufacturers.

Annual copper consumption is estimated to reach 1.02 million tonnes by FY 2025, with a projected CAGR of 6.5% till 2036.

The transition towards clean energy and electrification represents a major structural opportunity for the copper industry. Large-scale investments in solar power, wind energy, battery storage systems, electric vehicles, charging infrastructure, green hydrogen projects, and modern power transmission networks are expected to substantially increase the intensity of copper usage across the economy. Coppers superior electrical conductivity, thermal efficiency, durability, and recyclability make it an essential material for future energy and infrastructure systems.

India is also expected to witness sustained growth in urban infrastructure, commercial construction, residential housing, industrial automation, data centres, telecommunications networks, and railway electrification, all of which require significant deployment of copper- based electrical connectivity products. Rising per capita electricity consumption and the ongoing strengthening of transmission and distribution networks are expected to further support domestic demand for value-added copper products.

Accordingly, the long-term Indian economic environment is expected to offer significant growth opportunities for manufacturers engaged in value-added copper products, electrical conductors, bus bars, wires, and related industrial applications, supported by the countrys accelerating transition towards a more electrified, infrastructure-driven, and energy-efficient economy.

Copper in India: Present and future outlook

Copper has emerged as one of the most critical metals driving Indias industrial growth and energy transition. Owing to its excellent electrical and thermal conductivity, durability and recyclability, copper plays a vital role across diverse sectors including power generation and transmission, renewable energy, electric vehicles (EVs), railways, construction, electronics, telecommunications and industrial manufacturing.

1. Present Scenario of Copper Industry in India

India continues to be one of the fastest-growing copper-consuming markets globally, supported by rapid urbanisation, infrastructure development and the Governments focus on manufacturing-led economic growth. Indias ambition to become a global manufacturing hub through initiatives such as Make in India, Production Linked Incentive (PLI) schemes, National Infrastructure Pipeline, Gati Shakti, renewable energy expansion programmes, electric mobility initiatives and the National Green Hydrogen Mission is expected to strengthen the domestic industrial ecosystem. The increasing localisation of manufacturing activities and development of supply-chain infrastructure are likely to support long-term growth in the nonferrous metals and electrical equipment sectors.

The renewable energy sector has emerged as a major demand driver for the copper industry. Solar photovoltaic systems, wind power projects, battery energy storage systems, and electric vehicle charging infrastructure require substantial quantities of copper for efficient power generation, transmission, and distribution. As India continues to pursue its long-term renewable energy and carbon reduction objectives, copper consumption is expected to increase significantly across multiple applications.

The power and infrastructure sectors remain the largest consumers of copper in India. The countrys continued investment in transmission and distribution networks, renewable energy projects and digital infrastructure is expected to sustain robust demand. In addition, rapid growth in electric mobility, consumer electronics, data centres and artificial intelligence (AI)- enabled infrastructure is creating new avenues for copper consumption.

Despite these challenges, the Indian copper industry continues to demonstrate resilience through capacity expansion, operational efficiency improvements, recycling initiatives, and increasing emphasis on value-added downstream products. The organised sector is focusing on enhancing product quality, adopting advanced manufacturing technologies, improving energy efficiency, and strengthening customer relationships across industrial and infrastructure segments.

Despite strong demand, Indias domestic refined copper production remains below consumption, resulting in continued dependence on imports. Industry estimates indicate that domestic copper demand is expected to grow by approximately 9-12% annually over the medium term, supported by favourable macroeconomic conditions and increasing investments across infrastructure and clean energy sectors. Recent industry assessments also indicate that India will require around 500,000 tonnes of additional refined copper capacity every five years to meet projected demand growth.

Future Outlook

The long-term outlook for the Indian copper industry remains highly positive. Copper is increasingly recognised as a strategic metal for achieving Indias energy security, manufacturing competitiveness and sustainability objectives.

The transition towards renewable energy and electric mobility is expected to substantially increase copper intensity across the economy. Electric vehicles require significantly higher quantities of copper than conventional internal combustion engine vehicles, while solar power plants, wind farms, battery energy storage systems and modern power grids require extensive use of copper in cables, transformers, motors and electrical equipment. Continued expansion of AI-driven data centres and digital infrastructure is also expected to support long-term copper demand.

Indias ambitious infrastructure development plans, including expansion of highways, metro rail projects, dedicated freight corridors, industrial corridors and urban infrastructure, are expected to further strengthen copper consumption. Simultaneously, rising electricity demand and investments in grid modernisation are likely to increase the requirement for copper-intensive electrical equipment and transmission networks.

While the industry continues to face challenges such as volatility in global copper prices, geopolitical uncertainties, supply-chain disruptions, foreign exchange fluctuations and dependence on imported copper concentrates, these challenges are also encouraging investments in domestic smelting, refining, recycling and value-added manufacturing. Increasing emphasis on circular economy practices, resource efficiency and sustainable sourcing is expected to strengthen the resilience of the Indian copper ecosystem over the long term.

Considering the favourable demand fundamentals, supportive Government policies and structural growth drivers, the Indian copper industry is well positioned for sustained expansion. Companies that continue to focus on operational efficiency, technological advancement, product innovation, value-added products and sustainable manufacturing practices are expected to be well placed to capitalise on the significant opportunities emerging from Indias long-term economic and industrial growth.

Indian Copper Scenario

Indias copper industry occupies a strategically important position in the countrys industrial and infrastructure ecosystem. Copper is widely used in power generation and transmission, renewable energy systems, electrical equipment, railways, automobiles, electric vehicles, telecommunications, electronics, construction, and industrial machinery. Its superior electrical conductivity, durability, corrosion resistance, and recyclability make it an indispensable material for a rapidly electrifying economy.

As we discussed earlier that the domestic copper market is being driven by increasing investments in power infrastructure, renewable energy projects, metro rail systems, railway electrification, smart cities, data centres, industrial automation, and electric mobility infrastructure. These sectors require substantial quantities of copper rods, wires, conductors, strips, bus bars, and other value-added copper products; India continues to witness strong growth in electricity demand and transmission network expansion. The Governments continued focus on infrastructure-led economic development is expected to support long-term growth in copper consumption across both industrial and consumer applications.

As India depends on imports for a significant portion of copper concentrates and refined copper requirements, volatility in global markets can have a direct impact on input costs and operating margins for domestic manufacturers.

Copper is one of the few industrial metals that can be recycled repeatedly without significant loss of performance. Increasing emphasis on resource efficiency, circular economy practices, and sustainable manufacturing is encouraging greater use of recycled copper and energy- efficient production technologies across the industry.

A) INDUSTRY STRUCTURE AND DEVELOPMENTS:

Industry Structure:

The copper industry forms an integral part of the non-ferrous metals sector and plays a critical role in supporting economic growth, infrastructure development, industrialisation, and the ongoing transition towards an electrified and energy-efficient economy. Coppers unique properties, including high electrical conductivity, thermal efficiency, corrosion resistance, strength, and recyclability, make it an indispensable material for a wide range of industrial and infrastructure applications.

Industry Overview:

The industry has witnessed several important developments that are reshaping the demand outlook for copper and copper-based products. Copper is one of the most versatile and widely used industrial metals, essential for the global shift toward electrification, infrastructure development, and clean energy. Known for its excellent electrical and thermal conductivity, corrosion resistance, and recyclability, copper plays a critical role in various sectors including power generation and transmission, construction, consumer durables, transportation, and electronics.

Company Performance - Comparison with Previous Year

During the Financial Year 2025-26 under review, the Company demonstrated a strong operational and financial performance, registering notable improvements across key metrics compared to the previous fiscal year.

Key Highlights:

• Revenue Growth: The Company reported a year-on-year increase of 87.85 % in total revenue, driven by higher sales volume, improved product mix, and firm copper price realization in the domestic and export markets.

• Improved Profitability: Profit Before Tax (PBT) grew by 103.09%, supported by better operating leverage, efficient cost management, and strategic procurement of raw materials.

• Export Performance: Export revenues increased by 8.52% as the Company expanded its footprint in high-demand overseas markets, particularly in the Middle East, Europe, and Southeast Asia.

• Working Capital Efficiency: Improved inventory management and streamlined receivables cycle contributed to better cash flows and lower working capital requirements. ^•

• EBITDA Margin Expansion: The Companys EBITDA margin improved from 72.16% as compared to previous year, showcasing higher value addition and tighter cost control.

Business Strategies

The Company aims to improve capacity utilisation, production planning, yield optimisation, and process efficiency through better scheduling, preventive maintenance, automation, and continuous process improvements. Efficient utilisation of manufacturing facilities is expected to support cost competitiveness and operational scalability.

Considering the volatility in copper prices, the Company will focus on:

• Efficient procurement planning

• Optimized inventory management

• Continuous monitoring of metal price movements

• Reduction of process losses and scrap generation

• Improved working capital management

These measures are expected to reduce cost pressures and improve financial efficiency.

The Company is committed to promoting sustainable manufacturing practices through:

• Efficient utilisation of copper and other resources

• Recycling and reuse of process scrap

• Reduction in energy consumption

• Improvement in process efficiency

• Compliance with environmental and safety standards

Coppers recyclability provides an opportunity to support circular economy initiatives while improving resource efficiency.

These strategic initiatives are designed to enhance the Companys competitive advantage, drive operational excellence, and ensure sustainable growth in a dynamic global copper market.

Strategic Initiatives:

During the year, the Company continued to focus on a series of strategic initiatives to strengthen its position in the domestic and international copper markets. These initiatives are aligned with its vision for sustainable growth, enhanced value creation, and competitiveness across the copper value chain.

To address the financial proficiency during the year 2025-26 M Tek Copper Limited (Erstwhile Madhav Copper Limited), undertook the following strategic initiatives:

1. Strengthening Manufacturing Operations:

The Company focused on improving production efficiency, process stability, yield optimisation, and capacity utilisation across its manufacturing facilities for copper wires, bus bars, rods, and related products. Continuous efforts were made to minimise process losses, improve productivity, and ensure smooth manufacturing operations.

2. Product Portfolio Enhancement:

The Company continued to increase its emphasis on value-added copper products by enhancing its capability to manufacture customised bus bars, precision copper sections, high-conductivity wires, and application-specific copper products catering to diverse industrial and infrastructure requirements.

3. Quality and Process Improvement

The Company undertook various initiatives aimed at strengthening quality assurance systems, in-process inspection controls, testing procedures, and product consistency. These measures were directed towards maintaining high standards of conductivity, dimensional accuracy, and reliability required by customers in the electrical and industrial sectors.

4. Cost Optimisation and Working Capital Management

Considering the volatility in copper prices, the Company focused on efficient procurement planning, inventory rationalisation, scrap management, and working capital optimisation. These initiatives were aimed at improving operational efficiency and reducing the impact of raw material price fluctuations.

5. Sustainability and Resource Efficiency

The Company remained focused on resource optimisation, recycling of process scrap, reduction of material wastage, energy conservation, and compliance with applicable environmental and safety standards, thereby supporting sustainable manufacturing practices.

6. Export Market Penetration:

As part of its global growth strategy, the Company is:

• Targeting key export markets in the Middle East, Africa, and Southeast Asia

• Enhancing logistics and supply chain networks to ensure faster delivery

• Developing copper solutions aligned with global standards and certifications

7. Digital Transformation and Industry:

To improve operational efficiency and traceability, the Company is:

• Implementing real-time production monitoring and predictive maintenance

• Deploying ERP, MES, and analytics platforms for decision-making

• Enhancing cyber security and data integration across departments

8. ESG and Sustainability Leadership:

The Company is committed to sustainability through:

• Use of renewable energy at select manufacturing units

• Expansion of copper recycling and scrap processing capacity

• Reduction of water usage, effluent discharge, and carbon footprint

7. Human Capital Development:

To support future growth, the Company has:

• Launched skill upgradation programs for workers and engineers

• Strengthened safety, compliance, and employee welfare standards

These strategic initiatives are designed to transform the Company into a globally competitive, future-ready copper manufacturer that delivers value through technology, quality, and responsible growth.

Guided by its purpose of building a greener, stronger, smarter world, our company provides innovative solutions for a sustainable planet.

M Tek Copper (Erstwhike known as Madhav Copper) has taken several cost optimization initiatives across the Country to improve efficiency and reduce the overall cost of production at all its facilities.

In addition, our Company has set up copper Furnace and production through the same is already started. This has resulted into added capacity to our existing manufacturing capacity as well as introduction of new products i.e. Copper Bus Bars, Profile, Copper Stripes, Oxygen Free Copper Rod, Paper Insulated Copper Conductor, Fibber Glass Copper Conductor.

D) SEGMENT WISE PERFORMANCE

The Company has only one segment. Performance of the same is given below in point H.

E) OUTLOOK

With its established manufacturing capabilities, industry experience, quality-focused approach, and emphasis on sustainable growth, the management is cautiously optimistic about the Companys future performance and believes it is well positioned to capitalize on emerging opportunities in the copper and electrical infrastructure sectors.

For Our Company, The outlook for the copper industry remains positive, supported by increasing investments in power transmission and distribution, renewable energy, electric vehicles, railway electrification, infrastructure development, and industrial automation. Copper continues to be a critical input material for energy-efficient systems and emerging clean-energy technologies, thereby creating significant long-term growth opportunities for manufacturers of copper bus bars, rods, wires, strips, and conductors.

Overall, the copper sectors growth potential combined with the Companys strategic initiatives lays a robust foundation for sustainable value creation in the coming years.

F) RISKS AND CONCERNS

The copper industry is exposed to various risks arising from domestic and global economic conditions, commodity markets, regulatory changes, and operational factors. The Company continuously monitors these risks and undertakes appropriate mitigation measures to minimize their potential impact on business performance.

• Raw Material Price Volatility

• Foreign Exchange Fluctuation Risk

• Demand Cyclicality

• Competition Risk

• Environmental and Regulatory Compliance

• Working Capital and Liquidity Risk

• Supply Chain Disruptions

• Technology and Quality Risk

• Power and Energy Costs

• Health, Safety, and Operational Risk

• Global Economic Slowdowns

While the above risks may influence the Companys operations and financial performance, management believes that its established manufacturing infrastructure, diversified customer base, prudent financial management, and continuous monitoring of business and market conditions provide reasonable assurance that these risks are being effectively managed and mitigated to the extent possible.

The Company continuously monitors these risks through a comprehensive risk management framework and takes proactive measures including operational flexibility, compliance audits, and investments in sustainable and innovative technologies to mitigate potential impacts.

G) INTERNAL CONTROL SYSTEM

The Company has established an adequate system of internal controls commensurate with the size, scale, and complexity of its operations. The internal control framework is designed to ensure orderly and efficient conduct of business, safeguarding of assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records, reliability of financial information, and compliance with applicable laws, regulations, and internal policies.

H) DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The Company delivered a significantly improved performance during the financial year 2025-26 under review, both operationally and financially, as compared to the previous year. This growth was driven by enhanced capacity utilization, favorable market conditions, improved realizations, and a strong focus on operational efficiency and cost management.

The Companys profit before tax was ^ 701.49 Lakhs during the year as compared to ^ 345.39 Lakhs in the previous year. The Company has incurred a Profit i.e. net profit after tax of ^ 448.78 lakhs, as against a Profit after tax of ^ 468.77 Lakhs in the previous year

I) HUMAN RESOURCE DEVELOPMENT

Human resources continue to be one of the Companys most valuable assets and a key driver of its operational efficiency, product quality, and long-term growth. The Company believes that sustainable business performance depends upon attracting, developing, and retaining competent and motivated employees at all levels.

The Company is committed to creating a safe, healthy, and performance-oriented work environment that encourages employee participation, teamwork, and continuous learning. During the year, the Company continued to focus on strengthening the capabilities of its workforce through various training and development initiatives covering:

The Company maintains cordial and harmonious industrial relations at its manufacturing facilities and corporate office. Employee engagement, transparent communication, and grievancehandling mechanisms have contributed to maintaining a positive work culture and uninterrupted operations during the year.

The management places significant emphasis on nurturing talent, building leadership capabilities, and enhancing employee competencies to support the Companys future growth plans and evolving business requirements. During the year, the Company conducted regular training programs covering technical skills, safety practices, leadership development, quality systems, and digital competencies.

Employee feedback mechanisms and grievance redressal systems are in place to ensure open communication and satisfaction.

The Company remains committed to building a future-ready organization through strategic talent management, digital transformation of HR processes, and fostering a high-performance culture that empowers employees to contribute effectively toward the Companys goals

Material Developments in Human Resources / Industrial Relations:

During the year under review, the Company continued to maintain cordial and harmonious industrial relations across its manufacturing facilities and corporate office. There were no material disputes, strikes, lockouts, retrenchments, or labour unrest that affected the operations of the Company during the financial year.

The Company focused on strengthening employee engagement, improving workplace safety, enhancing technical competencies, and ensuring compliance with applicable labour laws and statutory requirements. Regular interactions between management and employees contributed to maintaining a positive work environment and uninterrupted manufacturing operations.

The Company also undertook initiatives relating to skill development, safety awareness, productivity improvement, and employee welfare measures to support operational excellence and organizational growth.

Management believes that the overall industrial relations environment remained stable and satisfactory throughout the year, and no material development occurred that could have a significant impact on the Companys business operations or financial performance.

Conclusion:

The financial year under review was characterized by a dynamic business environment influenced by fluctuations in commodity prices, changing market conditions, and evolving regulatory requirements. Despite these challenges, the Company continued to focus on operational efficiency, product quality, customer satisfaction, and prudent financial management.

The increasing demand for copper products from sectors such as power transmission and distribution, renewable energy, electrical equipment, infrastructure, railways, and industrial manufacturing presents significant growth opportunities for the Company. With its established manufacturing capabilities, experienced management team, quality-oriented approach, and customer relationships, the Company is well positioned to capitalize on these emerging opportunities.

The Company remains committed to strengthening its operational performance through process improvements, cost optimization, value-added product development, effective risk management, and continuous enhancement of internal control systems and human resource capabilities.

Management remains cautiously optimistic about the future outlook of the copper industry and the Companys growth prospects. The Company will continue to pursue sustainable growth strategies with a focus on operational excellence, financial discipline, innovation, and long-term value creation for all stakeholders.