Onida Electronics Ltd Management Discussions

The Management of MIRC Electronics Limited is pleased to present the Management Discussion and Analysis ("MD&A") for the financial year ended March 31, 2026 ("FY 2025-26"). This discussion should be read in conjunction with the audited financial statements and the notes thereto forming part of the Annual Report.

1. INDUSTRY STRUCTURE AND DEVELOPMENTS

The global consumer durables industry continues to remain structurally attractive, with Asia Pacific representing the largest regional market. India is among the faster-growing major consumer durables markets globally and continues to benefit from rising household incomes, urbanisation, electrification, increasing household penetration, replacement demand, expanding organised retail and e-commerce and growing consumer preference for technologically advanced and energy-efficient products.

The industry is increasingly being driven by a combination of first-time ownership, replacement and upgradation. Consumers are moving towards larger displays, smart connectivity, improved design, enhanced functionality, energy efficiency, convenience and premium products. Technology adoption is also shortening replacement cycles across several categories.

Demand is increasingly broad-based, with Tier II, Tier III, semiurban and rural markets providing an important avenue for future growth. The development of organised retail, e-commerce, omnichannel distribution and service networks is improving consumer access beyond metropolitan markets.

Consumer financing has also emerged as an important growth catalyst. Increasing availability of consumer durable loans, no-cost EMI, point-of-sale financing and embedded checkout financing is improving affordability and expanding the addressable consumer base.

Climate and lifestyle changes are supporting demand for cooling, refrigeration and health-oriented appliances, while increasing consumer awareness of energy efficiency is encouraging adoption of inverter and energy-efficient products.

Government initiatives continue to shape the operating environment. Under the vision of Viksit Bharat 2047, flagship schemes such as the Production-Linked Incentive (PLI) scheme for white goods (targeting an increase in domestic value addition from ~20% to ~75-80%), Startup India, the Ujala Yojana for energy-efficient appliance adoption, the Saubhagya Yojana for rural electrification, expanding digital payment infrastructure and the Pradhan Mantri MUDRA Yojana for MSME financing, are together aimed at transforming India into a global manufacturing powerhouse for consumer durables and reducing import dependence.

At the same time, the industry continues to navigate structural headwinds, including heavy import dependence on compressors, semiconductors, printed circuit boards and lighting drivers; the impact of rupee depreciation on input costs; stricter e-waste, energy-efficiency and recycling compliance norms.

Companys Position and Business Overview

The Company operates primarily in the consumer electronics and home-appliance segment under the Onida brand. Its principal product categories are:

• LED/Smart Televisions:

From Karaoke to Fire TV, Onidas New Era of Entertainment Innovation This year, innovation has remained the driving force behind Onidas vision, especially in the television category, where the brand continues to push boundaries and redefine home entertainment. Strengthening its legacy of introducing consumer-focused innovations, Onida launched Indias first Karaoke TV during the festive season in October a breakthrough product that transformed the traditional TV viewing experience into an interactive entertainment hub for families and friends.

The launch created tremendous excitement in the market and generated significant buzz across the consumer electronics industry. With its unique karaoke functionality, immersive audio-visual experience, and family-centric entertainment appeal, the product quickly became a major talking point among consumers, retailers, and technology enthusiasts alike. The Karaoke TV not only attracted strong consumer interest but also helped Onida stand out in an increasingly competitive TV segment by offering something truly differentiated and experience-driven.

Backed by strong promotional campaigns, festive visibility, and positive word-of-mouth, the launch garnered widespread attention both online and offline, driving higher engagement and increasing brand recall. The innovation reinforced Onidas commitment to delivering meaningful technology that enhances everyday lifestyles while staying ahead of evolving consumer preferences.

By combining entertainment, technology, and innovation into a single product, Onida once again demonstrated its ability to pioneer new trends in the

Indian television market and strengthen its position as a forward-thinking consumer electronics brand.

Onida also launched the All New Edition of the Built- In Fire TV. The new Onida Fire TV is built for a new generation of consumers who want entertainment without the complexity of technology. In a market dominated by feature-heavy smart TVs, Onida Fire TV stands out as an entertainment-first experience that prioritizes simplicity, speed, and seamless streaming. Powered by Alexa voice control, it makes discovering content effortless eliminating confusing menus, complicated setups, and endless customization. Designed for modern Indian homes, it delivers instant access to favourite OTT apps, movies, music, and regional entertainment with a smooth, user-friendly interface. More than just a smart TV, Onida Fire TV is about making entertainment easier, more intuitive, and stress-free. Because today, people dont want to manage technology they simply want to switch on, relax, and enjoy. All Stream. No Stress.

Product-wise growth/de-growth during FY 2025-26:

Sale of LED/Smart Televisions was Rs. 16,074 Lakh in FY 2025-26 as compared to Rs.13,923 Lakh in FY 2024-25. There is growth of 15.5% in the segment of LED/Smart Televisions for FY 2025-26.

• Air Conditioners:

Onida Reinforces Innovation-Led Growth in Air Conditioners with Intelligent Features Designed for Consumer Value

Onida continues to strengthen its commitment to consumer-centric innovation in the air conditioner category by introducing intelligent features that enhance convenience, performance and long-term value for Indian households. Speaking on the brands innovation roadmap, Mr. Gunjan Srivastava, CEO, Onida, highlighted how Onida Air Conditioners are being designed to deliver smarter cooling experiences while addressing evolving consumer needs as Air Conditioners have now become a life-enabling device woven into the fabric of daily routines.

"At Onida, innovation is not just about adding features it is about creating meaningful solutions that improve the consumer experience. Todays consumers are looking for products that offer flexibility, ease of maintenance, efficiency and long-term reliability. Our air conditioners are built with this philosophy at the core, delivering intelligent value through innovations that truly matter,"

said Mr. Gunjan Srivastava, CEO, Onida.

Onida Air Conditioners integrate advanced features such as the 9-in-1 Convertible Technology, allowing users to customize cooling performance based on changing weather conditions, room occupancy and energy requirements. The feature gives consumers the flexibility to optimize cooling while helping manage energy consumption, making it both efficient and practical for everyday use.

Further elevating convenience and maintenance, Onida has introduced Turbo Flush ODU Clean, an intelligent cleaning mechanism designed to help maintain the outdoor units efficiency and performance. By enabling easier maintenance and cleaner operation, the feature supports enhanced durability and long-term cooling performance.

Another key innovation is the Easy Go Filter, designed to simplify filter access and cleaning. With easy maintenance becoming an increasingly important purchase consideration, the feature enables consumers to maintain air quality and cooling efficiency with minimal effort.

"These innovations reflect our larger vision of delivering intelligent value to consumers. Features such as 9-in-1 Convertible, Turbo Flush ODU Clean and Easy Go Filter are not just technological additions; they are purposeful innovations that solve real consumer challenges while enhancing convenience and ownership experience," added Mr. Srivastava.

As consumer expectations continue to evolve, Onida remains focused on developing products that combine technology, usability and value, reinforcing its position as a brand committed to meaningful innovation in home appliances.

Product-wise growth/de-growth during FY 2025-26:

Sale of air-conditioner was Rs. 24,793 Lakh in FY 2025-26 as compared to Rs. 34,064 Lakh in FY 2024-25. There is de-growth of 27.2% in the segment of air-conditioners for FY 2025-26 largely attributed to intermittent rain and unfavourable weather.

Washing Machines:

Onida Washing Machines: The King of Powerful Wash

Backed by over 40 years of consumer trust and innovation, Onidas 2026 Washing Machine range is designed to deliver powerful cleaning, enhanced hygiene, and everyday convenience for modern Indian households.

From Semi-Automatic and Fully Automatic Top Load models to dedicated Washers, the range caters to diverse family needs while combining intelligent technology, energy efficiency, and durable performance.

Key Highlights

• Sensomatic Wash Technology - Automatically senses laundry load and optimizes wash cycles for superior cleaning.

• Built-in Heater Models - Hot wash functionality for better stain removal and enhanced hygiene.

• Power Pulsator Technology - Deep cleaning performance while being gentle on fabrics.

• Multiple Wash Programs - Customized cycles for cottons, delicates, denim, bedding, sportswear, and quick washes.

• Turbo Dry & Air Dry Functions - Faster drying, ideal for monsoons and humid conditions.

• Energy & Water Efficient - Optimized performance with lower utility consumption.

• Smart Digital Controls - Easy-to-use interfaces with intuitive program selection.

• Anti-Rust Design & Soft-Close Glass Lids - Durable, stylish, and built for Indian conditions.

• Child Lock & Safety Features - Added peace of mind for families.

Made for Indian Homes

Engineered to tackle tough stains, dust, humidity, and varied fabric types, Onida washing machines provide effective care for everything from delicate ethnic wear to heavy daily laundry.

Hygiene Meets Performance

Dedicated hygiene wash programs and heater-enabled models help deliver deeper cleaning and improved fabric sanitization for healthier living.

Made in India, Made for Indian Families

Combining affordability, innovation, and reliability, Onidas 2026 Washing Machine range continues the brands commitment to making everyday laundry smarter, easier, and more efficient.

Product-wise growth/de-growth during FY 2025-26:

Sale of washing Machines was Rs. 7,087 Lakh in FY 2025-26 as compared to Rs. 8,573 Lakh in FY 2024-25. There is degrowth of 13.3% in the segment of Washing Machines for FY 2025-26 owing to product portfolio mismatch and intense competition.

2. OPPORTUNITIES AND THREATS

Opportunities

a) Structural growth in the Indian consumer durables market

Indias expanding middle class, rising disposable incomes, urbanisation, electrification, replacement demand and increasing household penetration provide significant long-term growth opportunities. First-time ownership in underpenetrated markets is expected to supplement replacement and upgrade demand.

b) Premiumisation and technology adoption

Consumers are increasingly upgrading to feature-rich, smart and energy-efficient products, with televisions, air conditioners and washing machines — the Companys core categories — expected to be at the forefront of this shift.

c) Expansion beyond metropolitan markets

Increasing demand from Tier II, Tier III, semi-urban and rural markets provides an opportunity to expand market reach, highlighting a structural opportunity in semi-urban and rural markets as omnichannel distribution and service networks expand.

d) Growth of e-commerce and consumer financing

Expansion of e-commerce, organised retail, no-cost EMI, point-of-sale financing and embedded consumer finance are democratising access to durables and expanding the addressable market.

e) Supportive policy environment:

Government initiatives under Viksit Bharat 2047, including Production Linked Incentive schemes, Make- in-India and the Ujala Yojana, are strengthening local manufacturing, component sourcing and adoption of energy-efficient appliances.

Threats

a) Import dependence and currency exposure: The industry remains heavily dependent on imported components such as compressors, semiconductors, printed circuit boards and lighting drivers. Rupee depreciation directly inflates input costs, compressing margins or forcing price increases in a price-sensitive market.

b) Intensifying competition: Indias white goods and television market is fiercely contested, with several large global and domestic players competing across categories, many with substantial research and development and marketing budgets.

c) Regulatory and compliance cost escalation: Energy- efficiency norms, e-waste and recycling compliance requirements are becoming stricter, adding to operational and capital costs for manufacturers.

3. OUTLOOK

We remain optimistic about the outlook for Onida in FY 2026-27 and beyond. Indias consumer durables market is projected to nearly double to ~Rs539,000 crore by FY 2029- BO, at a CAGR of -14%, with televisions, air conditioners and washing machines the Companys core categories expected to lead growth. We are well positioned to benefit from these industry trends, with strong brand recognition and a wide distribution network across modern retail, general trade and e-commerce, enabling us to effectively reach the resurging middle-class consumer as well as fast-growing Tier III and semi-urban markets, which are already outpacing metro demand growth.

We continue to invest in product innovation smart features, energy efficiency and design as reflected in recent launches such as the Karaoke TV, Fire TV, 9-in-1 Convertible air conditioners and the Sensomatic-enabled washing machine range, to align with shifting consumer preferences toward premium and connected products. The deepening of consumer financing, no-cost EMI and e-commerce penetration is expected to continue expanding the addressable market and democratising access to durables across income segments.

Policy tailwinds under Viksit Bharat 2047 including Production Linked Incentive schemes, Make-in-India and energy- efficiency initiatives along with a stable fiscal environment and infrastructure improvements, give us confidence that domestic production will remain profitable and scalable. Given our experienced management and long track record, we are confident in our ability to execute effectively. In summary, the medium-term outlook is positive: the combination of robust industry growth, enduring consumer demand for quality products, expanding retail channels and government support forms a strong backdrop for our business. We will continue to monitor market developments closely and remain agile, but overall, we anticipate that our brand strength and operational agility will enable us to navigate challenges and capture the growth opportunities in FY 2026-27 and beyond.

4. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has established a matured internal audit process for the Company as a whole covering the corporate office and the branches all over India. Agenda for the audit/ scope is finalized and approved by the Audit Committee. The audit is carried out by external audit firm across head office, plant and branches. The internal audit department of the Company coordinates with the internal auditors and auditees and ensures proper follow up for closure of audit concerns.

The Company has standardized SOPs in place in form of various manuals, policies and procedures for all critical and important activities as recommended by the management. Audit finding are placed in the audit committee and directions of the committee are followed to improve internal control and avoid recurrence of events.

There is an evolved risk management strategy with standard operating procedures placed before and approved by the Board of Directors of the Company and are followed by the Company for the reporting and compliance purposes.

There are certain policies adopted by the Company within the organization, which are as follows: -

a) Whistle Blower Policy

This policy is formulated to provide opportunity to all employees to have access to the Management or the Chairman of the Audit Committee, in case they observe any unethical and improper practice or behavior or wrongful conduct in the Company and to prohibit any person from taking adverse personal action against such employee.

b) Policy on Related Party Transactions

This policy is framed in compliance of the applicable provisions of the Companies Act, 2013 and the rules made thereunder and SEBI (LODR) Regulation, 2015 as amended from time to time to ensure the approval and reporting of transactions between the Company and related parties.

7. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

Following are the financial highlights of the Company for the year ended March 31,2025 on comparable basis: -

INCOME

The total income for the year ended March 31, 2026, was Rs. 670.83 crores as compared to Rs. 757.42 crores in the previous year, a decrease of 11.43%

COST OF SALES

The cost of sales for the year ended March 31,2026, was Rs. 574.25 crores as compared to Rs.599.68 crores in the previous year.

EMPLOYEE REMUNERATION AND BENEFITS

Employee cost for the year at Rs. 54.39 crores decreased by 10.17% as compared to Rs. 60.55 crores in the previous year.

OPERATING AND GENERAL EXPENSES

Operating and general expenses in current year increased to Rs.80.33 crores from Rs. 78.32 crores in the previous year.

FINANCIAL EXPENSES

Financial expenses for the year was at Rs. 16.39 crores as compared to Rs. 14.60 crores in the previous year.

DEPRECIATION

Depreciation charge for the year at Rs.6.49 crores as compared to Rs. 6.57 crores in the previous year.

PROFIT/ LOSS BEFORE TAX AND EXCEPTIONAL ITEMS

Loss before tax and exceptional items for FY 2025-26 is Rs.61.02 Crores as compared to Rs. 2.30 Crores in FY 2024-25.

EXECPTIONAL ITEMS

Exceptional loss for the year was Rs. 13.72 Crores

PROFIT/ LOSS BEFORE TAX AND AFTER EXCEPTIONAL ITEMS

Loss before tax and after exceptional items for FY 2025-26 is Rs.74.74 Cr. as compared to a loss of Rs. 2.30 Cr. in FY 2024-25.

8. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS

At Onida, people remain at the core of everything we do. The Company believes that culture is a powerful catalyst to drive performance, optimise true potential, and help attract and retain talent. Empowering employees through continuous development remains a priority, with a continued focus on building functional, managerial and leadership capabilities to keep our people future-ready in an ever-evolving environment.

The Company continues to drive digital transformation across the employee lifecycle to simplify processes, including on-boarding, induction and product orientation, to enable faster alignment with organisational goals. Sales automation remains a key initiative for the field workforce, aimed at creating transparency, driving value growth, ensuring process hygiene and providing real-time data.

Fostering employee connection and cross-functional collaboration remained a priority throughout the year, with initiatives to strengthen interpersonal bonds, enhance team cohesion and build a sense of belonging across the organisation, contributing to a more connected, agile and engaged workforce.

To remain future-ready, the Company will continue to focus on building robust learning ecosystems, adopting data- driven people practices and advancing digital platforms to support employee success and organisational resilience.

Your Company has 317 employees on its payroll as on March 31, 2026.

9. RESEARCH AND DEVELOPMENT AND TECHNOLOGY

The Company continues to recognise research and development as an important enabler of product differentiation and competitiveness.

The Companys Onida Research and Development Centre in Mumbai undertakes activities covering embedded software, industrial design, mechanical design and electrical circuit design.

The Companys R&D focus includes developing products suited to Indian consumer requirements, improving product functionality and reliability, incorporating smart and connected technologies, improving energy efficiency and supporting product cost optimisation.

The Company intends to continue strengthening technology- led differentiation while maintaining appropriate cost discipline.

10. ENVIRONMENT AND E-WASTE MANAGEMENT

The Company remains committed to complying with applicable environmental regulations and Extended Producer Responsibility requirements under the applicable e-waste framework.

The Company has arrangements with authorised recyclers for collection and recycling of electronic waste and continues to encourage customers and other stakeholders to dispose of end-of-life electronic products through authorised channels.

The Companys manufacturing facility at Wada, Maharashtra has substantial green cover, which the Company continues to maintain as part of its environmental initiatives.

11. MATERIAL FINANCIAL AND COMMERCIALTRANSACTIONS INVOLVING SENIOR MANAGEMENT

The Company has in place a Code of Corporate Governance which stipulates that senior management personnel shall make disclosures to the Board of Directors of the Company regarding any material financial and/or commercial transactions in which they are interested that may have a potential conflict with the interest of the Company.

12. CAPITAL AND FUND-RAISING INITIATIVES

During and around FY 2025-26, the Company undertook significant capital-raising initiatives to strengthen its financial resources.

The Company completed a Rights Issue pursuant to which 4,94,89,845 equity shares of face value of Rs1 each were allotted at an issue price of Rs10 per share, including a premium of Rs9 per share.

The Company also completed a preferential issue/private placement of equity shares pursuant to which 8,89,49,900 equity shares were allotted at an issue price of Rs16.81 per share, including a premium of Rs15.81 per share.

In addition, the Company raised Rs60 crore through the issue of 6,000 senior, secured, redeemable, non-convertible debentures of face value of Rs1,00,000 each.

These fund-raising initiatives are intended to provide financial resources for business requirements, working capital, debt servicing and strengthening of the Companys financial position, subject to the terms and end utilisation disclosed in the relevant offer and transaction documents.

The Company remains focused on prudent capital allocation and deployment of funds towards activities supporting operational improvement and long-term value creation.

13. INTERNAL RISK MANAGEMENT AND GOVERNANCE

The Companys risk management framework is overseen by the Board and the Risk Management Committee, as applicable.

The framework seeks to identify, assess, monitor and mitigate material risks and includes consideration of business and strategic risk, market risk, financial and liquidity risk, credit risk, foreign exchange risk, supply-chain risk, regulatory risk, information technology risk, operational risk and reputational risk.

The Company seeks to integrate enterprise risk management, internal controls and assurance processes with the objective of improving risk visibility, strengthening accountability and ensuring timely mitigation of identified risks.

14. CAUTIONARY STATEMENT

The statements made in this report describing the Companys projections, expectations and estimations may be forward looking within the meaning of applicable securities laws and regulations. These statements are based on certain assumptions and expectation of future events. The actual results may differ from those expressed or implied in this report due to the influence of external and internal factors beyond the control of the Company.

The Company assumes no responsibility in respect of forward looking statements herein which may undergo changes in future on the basis of subsequent developments, information or events. Readers are cautioned not to place undue reliance on the forward looking statements.

For and on behalf of the Board of Directors MIRC Electronics Limited
	SD/- Vijay Mansukhani Chairman of the Meeting and Managing Director DIN: 01041809
Date: 20th May, 2026 Place: Mumbai