Paramount Communications Ltd Management Discussions

ECONOMIC REVIEW

Global Economy

The global economy in 2025 operated in an uncertain macroeconomic environment, marked by trade restrictions, policy uncertainty and persistent geopolitical tensions. Ongoing conflicts in Eastern Europe and the Middle East, including the Russia-Ukraine war, continued to disrupt global supply chains, energy markets and investor sentiment, causing periodic volatility in commodity prices and financial conditions. Rising tariffs and evolving trade arrangements further affected global trade and investment flows.

Despite these headwinds, global economic activity remained resilient, supported by stable labour markets, continued fiscal support and technology-led investments, particularly in artificial intelligence (AI). Diversified trade routes, stronger energy security measures and supply chain realignment supported recovery, with global growth improving to 3.4% in CY 2025 from 3.3% in CY 2024.

Advanced economies grew by 1.9%, supported by stable labour markets, easing financial conditions and recovering demand, while emerging market and developing economies (EMDEs) expanded by 4.4%, driven by resilient domestic consumption, improving manufacturing and services activity, and continued infrastructure investments in key Asian economies.

Global headline inflation moderated to 4.1% in CY 2025, reflecting easing supply-side pressures and the impact of earlier monetary tightening. However, inflation remained uneven across regions, staying above target in the United States while remaining relatively subdued in several other major economies.

Outlook

As 2026 unfolds, the global economy faces renewed uncertainty amid escalating tensions in West Asia and disruptions across critical energy transit routes. Concerns over the supply of oil, LNG and fertilisers have heightened risks to energy security, inflation and supply chain stability. Consequently, global growth is projected to moderate to 3.1% in 2026 before improving to 3.2% in 2027. Improving diplomatic efforts, strategic energy diversification and stronger regional cooperation are expected to gradually ease these pressures, supporting supply chain stability, moderating inflation and strengthening the global recovery.

Advanced economies are projected to grow by 1.8% in 2026, while emerging market and developing economies are expected to expand by 3.9%, supported by domestic demand and continued infrastructure spending. Central banks are expected to remain cautious, while governments continue to prioritise fiscal discipline, targeted policy support and supply chain resilience amid the evolving global economic landscape.

[Source: IMF World Economic Outlook April 2026]

Indian Economy

The Indian economy remained one of the fastest-growing major economies in FY 2025-26, supported by resilient domestic demand, infrastructure investment and policy reforms. As per the Provisional Estimates released by the Ministry of Statistics and Programme Implementation (MoSPI), real GDP grew by 7.7%, while real Gross Value Added (GVA) increased by 7.9% to ? 294.91 lakh crore. The services sector remained the primary growth driver, while manufacturing gained momentum through government-led production initiatives and infrastructure spending.

India stands as the worlds sixth-largest economy in nominal GDP terms, with private consumption and investment driving growth. Reforms such as GST, Production Linked Incentive (PLI) schemes and Make in India 2.0 continued to strengthen formalisation, manufacturing competitiveness, ease of doing business and global supply chain integration. Manufacturing activity remained robust, with the HSBC India Manufacturing PMI at 55.0 in May 2026 and the Index of Industrial Production (IIP) growing by 4.9% in April 2026, led by 6.2% growth in manufacturing.

Geopolitical tensions in West Asia and disruptions to global trade routes heightened risks around energy prices, logistics and critical industrial inputs. As an import-dependent economy for crude oil and intermediate goods, India remained exposed to higher energy prices, inflationary pressures, supply chain disruptions and commodity price volatility. However, diversified sourcing, stronger domestic manufacturing and deeper integration with emerging markets continued to support industrial resilience.

Government reforms and initiatives, including Make in India and the PLI schemes, remained key growth enablers. The PLI scheme attracted investments of approximately ? 2.16 lakh crore across 14 key sectors, supporting the objectives of Atmanirbhar Bharat and Indias vision of a USD 5 trillion economy.

Inflation moderated during the year, with the RBI lowering its FY 2025-26 CPI inflation forecast to 2.1%. The repo rate was cumulatively reduced to 5.25%, supporting credit availability and investment. Indias exports are projected to approach USD 1 trillion in FY 2026-27, aided by trade agreements, manufacturing scale-up and improving export competitiveness.

Outlook

Indias GDP is estimated to grow by 6.9% in FY 2026-27, driven by the twin engines of consumption and investment, reaffirming its position as the fastest-growing major economy for the fourth consecutive year. The country is projected to become a USD 30-35 trillion economy by 2047, supported by structural reforms, sustained growth momentum, and expanding digital and physical infrastructure. However, the RBI has cautioned that while the growth outlook remains resilient, risks are tilted to the downside due to prolonged geopolitical tensions, global trade uncertainties and external economic headwinds.

Initiatives such as Make in India 2.0 will prioritise emerging and high-growth sectors while improving the business environment, while the PLI scheme will continue to strengthen manufacturing, exports and competitiveness. Moderating inflation is expected to support rural consumption. The Union Budget FY 2026-27 has increased capital expenditure by nearly 9% to a record ? 12.2 lakh crore from ? 11.2 lakh crore, prioritising investments in roads, railways, ports, airports, power transmission and urban infrastructure to sustain economic momentum and advance the governments "Viksit Bharat" vision for a developed India.

Geopolitical tensions in West Asia and disruptions to global trade routes heightened risks around energy prices, logistics and critical industrial inputs.

INDUSTRY OVERVIEW Infrastructure sector

Indias infrastructure sector continues to be a key pillar of economic growth, supported by sustained public investment, policy continuity and increasing private sector participation. The Union Budget 2026-27 has reinforced the Governments infrastructure-led development strategy by increasing the capital expenditure outlay to ? 12.22 lakh crore, with continued focus on transport infrastructure, urban development, power, logistics, digital infrastructure and industrial growth.

Indias transportation infrastructure continues to witness rapid expansion. The Government has enhanced allocations towards roads and highways, with the Ministry of Road Transport and Highways receiving ? 3.10 lakh crore under the Union Budget 2026-27, while the allocation for the National Highways Authority of India (NHAI) has increased to ? 1.87 lakh crore. The National Highway network grew by over 60%, from 91,287 km in 2014 to 1,46,572 km in FY2025-26. Under Bharatmala Pariyojana, 34,800 km of National Highway corridors are being developed with an investment of approximately ? 5.35 lakh crore. Continued expansion of highways, expressways and economic corridors is expected to improve logistics efficiency, strengthen industrial connectivity and support higher demand for power and communication infrastructure.

The aviation sector has also recorded significant progress. The number of operational airports has increased from 74 in 2014 to 165 in 2026, supported by investments exceeding ? 1.4 lakh crore. Simultaneously, metro rail infrastructure has expanded to more than 1,155 km, making India home to the worlds third-largest metro network. These developments are driving demand for specialised cables used in airports, metro rail systems, signalling networks and urban infrastructure projects.

Urban infrastructure development continues to gain momentum with the Governments approval of the Urban Challenge Fund (UCF), which provides ? 1 lakh crore of Central Assistance and is expected to catalyse ? 4 lakh crore of investment in the urban sector over the next five years. The Fund aims to promote market-led urban transformation through investments in economic hubs, urban mobility, transit-oriented development, water and sanitation infrastructure, and redevelopment projects, while encouraging private sector participation.

Indias digital infrastructure is expanding rapidly, driven by cloud adoption, artificial intelligence (AI), digitalisation and data localisation. According to KPMG, Indias data centre ecosystem is expected to create an estimated USD 90 billion opportunity by FY35 across the end-to-end value chain. This is expected to drive demand for high-performance power, fibre optic and data communication cables, complemented by continued investments in renewable energy, power transmission and distribution, railways and urban infrastructure.

Looking ahead, sustained public capital expenditure, supportive government policies and increasing private sector investments are expected to strengthen Indias infrastructure ecosystem. These structural growth drivers are likely to provide a favourable operating environment for manufacturers offering technologically advanced and high-quality wire and cable solutions across power, telecom, transportation, industrial and urban infrastructure applications.

(Source: PIB, PIB, PIB, KPMG)

Indias Power Sector

Indias power sector continued to strengthen during FY 2025-26, driven by sustained investments in generation, transmission and renewable energy infrastructure. Rising electricity demand, rapid capacity additions and continued policy support reinforced the sectors role in supporting economic growth, industrialisation and energy security. The Government maintained its focus on ensuring a reliable power supply while accelerating the transition towards a cleaner and more sustainable energy mix. The country is the third-largest producer and consumer of electricity in the world, and during FY 2025-26, Indias total power generation reached 1,846 billion Units (BU).

India has made significant progress in narrowing the demand-supply gap through sustained investments in generation capacity, transmission infrastructure and grid management. During FY 2025-26, the country successfully met a record peak power demand of 242.49 GW, while the power shortage declined sharply to 0.03% in December 2025 from 4.2% in FY 2013-14. This reflects improved supply adequacy, stronger grid reliability and better system planning. The enhanced availability of reliable power has also supported industrial and agricultural activities, improved electricity access in rural and semi-urban areas, and reduced dependence on diesel-based power generation.

Renewable Energy Capacity

Renewable energy continued to drive Indias energy transition during FY 2025-26, supported by sustained policy initiatives, strong capacity additions and growing investments in clean energy infrastructure. According to the Renewable Energy Statistics 2026 released by the International Renewable Energy Agency (IRENA), India became the worlds third-largest country in renewable energy installed capacity, surpassing Brazil.

The country recorded its highest-ever annual addition of non-fossil fuel capacity at 55.29 GW during FY 2025-26, significantly higher than the previous record of 29.5 GW in FY 2024-25. As of 31 March 2026, Indias total installed non-fossil fuel capacity stood at 283.46 GW, comprising 274.68 GW of renewable energy and 8.78 GW of nuclear power. Renewable energy capacity included 150.26 GW of solar power, 56.09 GW of wind power, 51.41 GW of large hydro, 11.75 GW of bioenergy and 5.17 GW of small hydro.

Solar energy remained the key growth driver. During FY 2025-26, Distributed Renewable Energy (DRE) contributed 16.3 GW, accounting for 36% of the 44.61 GW renewable capacity installed during the year, including 7.6 GW under PM-KUSUM and 8.7 GW from rooftop solar installations. Wind energy also witnessed its highest-ever annual capacity addition of 6.05 GW, exceeding the 4.15 GW added in FY 2024-25.

India also recorded its highest-ever renewable energy share in electricity generation in July 2025, with renewable sources meeting 51.5% of the countrys electricity demand of 203 GW. During FY 2025-26, the country generated 538.97 billion Units (BU) of electricity from non-fossil fuel sources, accounting for 29.2% of total power generation of 1,846 BU. Further, India achieved the milestone of 50% of its cumulative installed electricity capacity from non-fossil fuel sources in June 2025, five years ahead of its Nationally Determined Contribution (NDC) target under the Paris Agreement.

Looking ahead, the Government continues to work towards achieving 500 GW of installed electricity capacity from non-fossil fuel sources by 2030, supported by continued investments in solar and wind power, energy storage systems, transmission infrastructure, green hydrogen and distributed renewable energy. These initiatives are expected to strengthen Indias energy security, accelerate decarbonisation and support sustainable long-term growth of the power sector.

Indias renewable energy transition is expected to accelerate further, supported by sustained policy measures and higher public investments. In the Union Budget 2026-27, the Ministry of New and Renewable Energy (MNRE) received a budget allocation of ? 32,915 crore, representing a 30% increase over the Revised Estimates of 2025-26. The increase was primarily driven by higher allocations for the PM Surya Ghar Muft Bijli Yojana, whose budget was raised from ? 17,000 crore in 2025-26 (RE) to ? 22,000 crore in 2026-27 (BE).

y Indias power transmission network continued to expand during the year, strengthening the countrys ability to meet rising electricity demand and facilitate renewable energy integration.

Transmission and Distribution Sector

The transmission and distribution segment continued to advance through infrastructure modernisation and distribution reforms under the Revamped Distribution Sector Scheme (RDSS), with a focus on improving operational efficiency and the financial sustainability of distribution utilities. Under the scheme, 20.33 crore smart meters have been sanctioned based on proposals submitted by States and distribution utilities, comprising 19.79 crore consumer smart meters and 52.53 lakh distribution transformer smart meters. Of these, 4.69 crore smart meters have been installed. Reflecting the Governments continued focus on strengthening the power sector, the Ministry of Power has been allocated ? 29,997 crore in the Union Budget 2026-27, representing a 39% increase over the estimates of 2025-26.

In parallel, the Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM-JANMAN) continued to expand electricity access among Particularly Vulnerable Tribal Groups (PVTGs) and other tribal communities. Under the programme, 4,73,939 houses have been sanctioned for electrification, with approximately 2.50 lakh houses completed, reflecting continued progress towards inclusive rural electrification.

Indias power transmission network continued to expand during the year, strengthening the countrys ability to meet rising electricity demand and facilitate renewable energy integration. The network surpassed 5 lakh circuit kilometres (ckm) of 220 kV and above transmission lines, while the total transformation capacity reached 1,407 gigavolt ampere (GVA). Since 2014, the transmission network has expanded by 2.09 lakh ckm (71.6%), with transformation capacity increasing by 876 GVA. Looking ahead, inter-state transmission projects are expected to add around 40,000 ckm of transmission lines and 399 GVA of transformation capacity, while intra-state projects are projected to contribute an additional 27,500 ckm of transmission lines and 134 GVA of transformation capacity, further strengthening grid reliability and renewable energy evacuation.

Outlook

The outlook for Indias power sector remains strong, supported by growth in electricity demand, rising investments and the countrys clean energy transition. Indias installed power capacity is projected to increase from 538 GW to 900 GW by FY2032, driven by continued renewable energy additions alongside conventional generation to ensure grid stability. The Central Electricity Authority (CEA) projects electricity demand to grow at a 6% CAGR by 2030, supported by industrial expansion, increasing cooling requirements, electric mobility and the rapid growth of data centres. To support this transition, the sector is expected to witness significant investments in transmission and energy storage, with an estimated USD 51 billion required for transmission infrastructure to facilitate 500 GW of non-fossil fuel capacity by 2030, while 74 GW of energy storage will be needed by 2032 to manage renewable energy intermittency and meet peak demand. These structural investments are expected to strengthen grid reliability, enhance renewable energy integration and position the Indian power sector for sustained long-term growth.

(Source: PIB, PIB, PRS India, PIB, Economic Times)

Wires & Cables Industry

The global wires and cables industry continued to expand during

2025, driven by rising investments in power transmission and distribution, renewable energy, construction, digital infrastructure and telecommunications. The global wires and cables market was valued at USD 233 billion in 2025 and is projected to increase to USD 246.48 billion in 2026, reaching USD 409.01 billion by 2034, registering a CAGR of 6.54% during 2026-2034. Asia Pacific remained the largest regional market, accounting for 42.10% of the global market in 2025, supported by rapid urbanisation, infrastructure development and increasing electrification across emerging economies such as India and China.

Market growth continues to be supported by increasing investments in renewable energy projects, smart grid deployment, commercial and residential construction, and data centre and telecommunications infrastructure, all of which are driving demand for advanced power and communication cable solutions. The construction sector remained the largest end-user of wires and cables globally, while ongoing technological advancements and the development of high-performance cable solutions are expected to further strengthen industry growth.

Indias wires and cables industry continued to witness strong growth during FY 2025-26, led by rising investments in power infrastructure, renewable energy, housing, telecommunications and industrial development. The India wire and cable market was valued at USD 21.22 billion in 2025 and is expected to reach USD 23.13 billion in 2026, before growing to USD 35.58 billion by 2031, registering a CAGR of 9.01% during 2026-2031. Growth is being driven by increasing electricity demand, expansion of transmission infrastructure, rapid renewable energy deployment and continued urbanisation.

The sector continued to benefit from robust demand across multiple end-user industries. The Governments target of achieving 500 GW of non-fossil fuel capacity by 2030 is creating long-term demand for extra-high-voltage (EHV) power cables, while the rapid expansion of renewable energy projects is increasing the need for specialised transmission and distribution infrastructure. At the same time, nationwide 5G network expansion, data centre investments and fibre-to-the-home (FTTH) deployment are supporting demand for optical fibre and communication cables. The rollout of 4.69 lakh 5G base stations since October 2022, coupled with the relatively low fibreisation of telecom towers, presents opportunities for optical fibre cable manufacturers.

The industry is also witnessing a gradual shift towards organised manufacturers, supported by mandatory BIS certification, stricter quality standards and increasing preference for branded products. The organised segment accounted for around 74% of the market in 2025, with further gains expected as regulatory enforcement strengthens. Housing wires remained the largest product category, accounting for 32.25% of the market in 2025, while communication cables are projected to grow at a CAGR of 12.38% through 2031, driven by increasing digital connectivity and data infrastructure investments.

From a material perspective, copper accounted for 64.35% of the market in 2025, reflecting its superior conductivity and widespread use across power and infrastructure applications. Meanwhile, the report notes that high-conductivity copper variants are expected to grow at a CAGR of 9.11% through 2031, supported by demand for energy-efficient transmission systems. Consumer applications contributed 69.40% of industry revenue in 2025, while the IT and telecom segment is expected to record the fastest growth, at a CAGR of 9.92% through 2031, driven by data centres, fibre networks and digital infrastructure expansion.

The industrys outlook remains favourable, underpinned by sustained investments in power transmission, renewable energy, housing, industrial manufacturing and digital infrastructure. Rising infrastructure spending, increasing electrification, expansion of smart grids and growing exports are expected to support long-term demand for high-quality wires and cables, positioning the organised sector for continued growth.

Impact of the Middle East Crisis on the Indian Wires and Cables Industry

The wires and cables industry remains vulnerable to geopolitical developments, particularly in the Middle East, which may disrupt global supply chains and commodity markets. Escalating regional tensions could affect key trade routes, including the Red Sea and the Suez Canal, leading to longer transit times, higher freight costs and delays in raw material supplies. Such developments may also increase volatility in the prices of energy and key raw materials such as copper and aluminium, affecting manufacturing costs and operating margins. However, organised manufacturers with diversified sourcing, efficient inventory management and strong pricing capabilities are better positioned to manage these challenges.

Despite these uncertainties, the long-term outlook for the industry remains positive. Strong domestic infrastructure development, continued investments in the power and renewable energy sectors, and increasing localisation of manufacturing are expected to sustain demand for wires and cables.

India wire & cable exports

Indias wire and cable exports have witnessed robust growth in recent years, driven by the global shift towards supply chain diversification, increasing infrastructure investments and the countrys growing manufacturing competitiveness. Indian manufacturers are expanding their presence across key export markets, particularly the United States, Europe and the Middle East, supported by internationally certified products, competitive manufacturing capabilities and a favourable cost structure. This momentum is expected to continue, with industry estimates projecting Indias wire and cable exports to grow at a CAGR of around 14% during FY2025-FY2030, supported by sustained global demand, ongoing investments in power transmission, renewable energy, data centres and industrial infrastructure, creating significant opportunities for Indian manufacturers to further strengthen their global market presence.

Key Growth Drivers

Power Infrastructure and Renewable Energy

Continued investments in power generation, transmission and distribution infrastructure, along with the rapid expansion of renewable energy projects, remained the primary demand drivers for the industry. Large-scale deployment of transmission networks, smart grids, Green Energy Corridors and solar and wind projects continued to support demand for power, transmission and specialised cables.

Railway Infrastructure Development

The continued expansion and modernisation of Indias railway network remained a key demand driver for the wires and cables industry. In the Union Budget 2026-27, Indian Railways received a record capital outlay of ? 2,93,030 crore, reflecting the Governments sustained focus on railway electrification, station redevelopment, signalling upgrades, rolling stock and freight corridor development. These investments are expected to drive demand for railway signalling, power and communication cables.

Growth of Data Centres and AI Infrastructure

Indias expanding digital economy and rapid adoption of artificial intelligence (AI) are creating new opportunities for the wires and cables industry. According to the Ministry of Electronics and Information Technology (MeitY), Indias data centre capacity increased from about 375 MW in 2020 to around 1,500 MW by 2025, reflecting robust growth in digital infrastructure. The Ministry of Power estimates that electricity demand from data centres will reach 13.56 GW by 2031-32, necessitating continued investments in reliable power infrastructure, transmission networks and specialised cable solutions. The expansion of hyperscale data centres, AI computing facilities and cloud infrastructure is expected to drive sustained demand for power, control, fire-resistant and optical fibre cables across the country.

Telecom and Digital Connectivity

The continued expansion of digital infrastructure and 5G networks supported demand for communication and optical fibre cables. According to TRAI, Indias internet subscriber base increased from 1,028.61 million at the end of December 2025 to 1,092.79 million at the end of March 2026, registering a quarterly growth rate of 6.24%. This growth is expected to accelerate investments in fibre networks and telecom infrastructure.

Infrastructure and Urban Development

Continued investments in roads, metro rail, airports, industrial corridors, commercial developments and urban infrastructure remained key demand drivers for building wires and power cables. The Governments sustained focus on infrastructure-led growth and urbanisation is expected to support long-term demand across residential, commercial and industrial construction.

Shift Towards Organised Products

The industry continued to witness a gradual shift from the unorganised to the organised sector, driven by stricter quality standards, mandatory BIS certification, increasing safety awareness and growing preference for branded products. This trend is supporting market share gains for organised manufacturers offering certified, technologically advanced and value-added wire and cable solutions.

COMPANY OVERVIEW

Paramount Communications Limited is a well-recognised participant in Indias wire and cable industry with a legacy of nearly seven decades of operational experience. The Company continuously broadens its product portfolio and manufacturing capabilities to serve the growing and diversified requirements of the power, solar & renewable energy, oil & gas, data centers, industrial & infrastructure projects, defence, space, construction, railways, and telecom etc. With a consistent focus on quality, technology adoption and process excellence, the Company manufactures products that conform to global standards and customer expectations.

The Company caters to a varied customer base, comprising government bodies, private sector enterprises and institutional clients, which provides stability to revenues, mitigating sector-specific demand fluctuations. Paramounts customer base comprises more than 950 institutional clients across diverse sectors, supported by an extensive domestic distribution network and a growing international presence spanning over 35 export geographies. Further, the Companys distribution and retail network is reinforced by the Paramount Parivaar digital platform that integrates clients, channel partners, and electricians through a unified loyalty ecosystem to improve visibility, efficiency and network management.

Paramount Communications Limited provides a comprehensive range of product portfolio catering to a wide range of applications such as high and low-voltage power cables, telecom cables, specialised cables, optical fibre cables, railway cables, instrumentation and data cables and fire survival cables. Paramount is a pioneer in India, being the first manufacturer of axle counter railway cables, fire survival cables, lead-free house wires and laying and repairing of undersea cables. The Company also undertakes Engineering, Procurement and Construction (EPC) and turnkey solutions, including transmission conductor and Optical Ground Wire (OPGW) installation, as well as submarine cable laying and repair, further strengthening its integrated offerings. All of these reflect its focus on innovation, safety and compliance with evolving regulatory and industry norms.

Competitive Strengths

* Diversified portfolio serving power, solar & renewable energy, oil & gas, data centers, industrial & infrastructure projects, defence, space, construction, railways, and telecom, steel, cement, and specialised turnkey project requirements.

* A strong competitive position as the largest exporter of low-voltage (LV) cables (up to 600V) from India to the U.S. in CY2025, with the highest total export share among leading Indian wire and cable companies.

* Extensive domestic distribution network comprising over 250 channel partners, 600+ retail outlets and a growing network of more than 10,000 registered electricians through the Paramount Parivaar programme.

* E-Commerce presence across recognised digital portals.

* Well-established institutional business with more than 950 institutional customers across diverse industries, supported by long-standing customer relationships.

* Expanding retail presence through a digital and customer-focused engagement approach.

* Robust financial position and net worth with low debt, enabling us to capitalise on new opportunities.

* Strong international presence across more than 35 export geographies, supported by an expanding distribution network in key overseas markets.

* Growing opportunities in Engineering, Procurement and Construction (EPC) and specialised turnkey services.

Key Certifications

The company holds key certifications from renowned Indian and International agencies, highlighting its commitment to environmental stewardship, quality and workplace safety. These include ISO 9001:2015 for Quality Management Systems (QMS), ISO 14001:2015 for environmental commitment, ISO 45001:2018 for Occupational Health and Safety Management and ISO/IEC 27001:2022 for Information Security Management Systems (ISMS). In addition, the Company holds product and customer-specific approvals from organisations such as BIS, NTPC, Power Grid, RDSO, UL and LPCB, enabling it to serve both domestic and international markets while adhering to stringent quality and safety standards.

The Companys state-of-the-art manufacturing facilities are located at Kushkhera (Rajasthan) and Dharuhera (Haryana). These facilities are ISO-certified and operate with a strong emphasis on quality, environmental sustainability, and occupational health and safety. The manufacturing operations are supported by stringent quality control systems and adhere to rigorous quality, safety and environmental protocols. The Companys advanced Quality Assurance and Testing Laboratories are equipped with computerised testing equipment to ensure that products conform to applicable national and international standards as well as customer-specific requirements. Comprehensive quality checks are undertaken at every stage of production, including raw material inspection, in-process quality monitoring, and sample, routine, type, acceptance and other specialised tests to ensure consistent product reliability and performance.

Research & Development

The Company has a well-structured in-house Research and Development (R&D) team, focused on product innovation, quality enhancement and the development of application-specific cable and wire solutions. Through regular quality workshops and technical training programmes, the R&D function equips employees with upgraded technical knowledge and skills, fostering a culture of continuous improvement.

The Company strengthens its product portfolio by introducing technologically advanced, high-quality products that cater to evolving customer requirements while adhering to industry standards. The Companys R&D efforts also support the development of higher-value-added products for emerging applications, strengthening its ability to address evolving opportunities in sectors such as power transmission, renewable energy, railways, and specialised industrial applications. This sustained focus on innovation reinforces product differentiation, supporting the Companys long-term competitiveness across its key domestic and international markets.

Key Partnerships & Relationships

The Company strongly emphasises continuous growth and capability development to ensure consistent product quality and business sustainability. Customer relationships remain a key strength, reinforced by the Companys focus on reliability, service standards, and product performance. Over the years, the Company has established long-standing associations with domestic and international customers, including private sector enterprises, large Institutional clients and government institutions.

The Company maintains a well-diversified presence across domestic and international markets. Paramounts export operations extend to several geographies such as the USA, UK, South Africa, Spain, Russia, the Middle East and South Asia.

With an established presence across the United States, the Company supplies its products nationwide and was the largest exporter of low-voltage (LV) cables (up to 600V) from India to the U.S. in CY2025. The Companys export operations are reinforced by regulatory and customer approvals secured over the past 5 years, strengthening the Companys commitment to international standards, market expansion and long-term partnerships.

Business Enablers and Future Growth Prospects

The Companys growth is strengthened by a structured distribution network, long-standing customer relationships and a healthy financial position. With a constant focus on improving operations and market diversification, the Company further strengthens its growth outlook.

The Company remains committed to portfolio enhancement and manufacturing expansion through continued investment in infrastructure and new product development. During FY 2025-26, the Company initiated the development of its third manufacturing facility at Narmadapuram, Madhya Pradesh. Civil and site preparation activities are already underway, and orders for long-lead plant and machinery were placed, marking a significant milestone in the Companys long-term manufacturing expansion strategy. The proposed facility is expected to strengthen the Companys capabilities in addressing future demand across high-value cable segments while supporting its long-term growth objectives.

Business Segment	Key Products / Services
PowerCables	• LT & HT Power Cables • LT & HT Aerial Bunch Cables • Control Cables • Instrumentation Cables • UL-certified Cables for the USA
Railways & Infrastructure	• Railway Signalling Cables • Axle Counter Cables • Railway Power Cables
Telecom Sector Cables	• Optical Fibre Cables (OFC) • Fibre to the Home (FTTH) Cables • Jelly-filled Telecom Cables

Business Segment

Business Segment	Key Products / Services
Renewables & Specialised Applications	• HTLS and Specialised Conductors • MVCC • PV Solar Cables • Fire Survival Cables • EV Charging Cables
Domestic Applications	• Lead-free Building Wires • Multicore Cables • Submersible Cables • Coaxial and LAN Cables • Transmission Conductor Installation
Engineering, Procurement and Construction (EPC) & Specialised Turnkey Services	• Optical Ground Wire (OPGW) Installation • Submarine Cable Laying and Repair Services • End-to-end Specialised Turnkey Infrastructure Projects

Revenue Break-up by Product Segments (%) (*)

	FY 2025-26	FY 2024-25
Power Cables	57.4%	50.6%
Railway Cables	3.8%	9.1%
Telecom Cables	2.9%	2.1%
House Wires	5.6%	5.5%
Exports	28.9%	31.0%
Others	1.4%	1.7%

POWER CABLES

The domestic power cable segment continues to be a key contributor to the Companys revenues during the year. In FY 2025-26, this segment accounted for 57.4% of total revenue with sales of ? 1,098.22 crore compared to ? 786.96 crore sales in FY 2024-25, highlighting strong year-on-year growth. Growth in the power cable demand is driven by rising adoption of renewable energy, expansion of solar power capacities, increased investment in transmission and distribution networks and the steady growth in the real estate and infrastructure sectors. The company is well-positioned to capitalise on these structural growth drivers.

RAILWAY CABLES

Paramount Communications Limited continues to hold its position as a leading supplier of specialised cables to Indian Railways. During FY 2025-26, the railway cables segment contributed to 3.8% of the Companys total revenue, recording ? 73.01 crore in sales, compared to 9.1% of total revenue with sales of ? 141.25 crore in FY 2024-25.

Despite a moderating revenue contribution, demand for railway cables is projected to remain supported by the governments constant focus on infrastructure development, particularly within the railway sector and its ongoing commitment towards 100% railway electrification.

TELECOM CABLES

Paramount Communications Limited provides high-quality cable solutions to telecom operators and infrastructure providers. In FY 2025-26, the Telecom cable segment accounted for 2.9% of total revenue with revenues of ? 56.43 crore, as against ? 32.62 crore in FY 2024-25. The outlook for the Telecom cable segment remains linked to government policies for the telecommunication sector, rapid 5G network deployment, and long-term investment towards 6G technology infrastructure.

HOUSE WIRES

Paramount Communications Limited is a well-recognised supplier of durable and fire-retardant building wires for the domestic market. In FY 2025-26, the segment recorded 5.6% of the Companys total revenue, with sales of ? 107.82 crore from ? 85.75 crore in FY 2024-25. Growth in the segment is supported by sustained demand from housing and construction sectors, renovation demand and heightened consumer awareness of electrical safety standards.

EXPORTS

Paramount Communications Limited has a diversified export presence across more than 35 countries and geographies, including the United States, the United Kingdom, Spain, the United Arab Emirates, Jordan, Bangladesh, Nigeria, Russia, South Africa, Israel and Sri Lanka. The United States continues to be Paramounts largest export destination. Export revenues stood at ? 550.44 crore in FY 2025-26, compared to ? 482.96 crore in FY 2024-25, accounting for 28.9% of total sales, compared to 31.0% in the previous year. During the year, export performance was impacted by the increase in US import tariffs, which temporarily affected margins. However, the Company maintained its strategic presence in the US market while leveraging strong domestic demand to mitigate the impact. The Companys products are supplied across all major ports in the United States, reinforced by an expanding distribution network, which increased to 8 active distributors in FY 2025-26 from 2 in FY 2021-22. Building on this scale and operating experience, the Company continues to strengthen its international presence by expanding customer relationships and distribution networks across existing and new export markets.

Revenue Break-up: Domestic vs Exports (%)

	FY 2025-26	FY 2024-25
Domestic	71%	69%
Export	29%	31%
Order Book (%)
Domestic		87%
Export		13%

SPECIALISED TURNKEY SERVICES

The Specialised Turnkey Services segment accounted for 0.1% of the Companys total revenue in FY 2025-26, compared to 0.4% in FY 2024-25. Revenue from the segment stood at ? 1.62 crore during the year, compared to ? 6.69 crore in the previous year.

FINANCIAL PERFORMANCE

The financial statements of Paramount Communications Limited have been prepared in accordance with the Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013, read with the Companies (Indian Accounting Standards) Rules, as amended from time to time. The significant accounting policies applied in the preparation of the financial statements are disclosed in the notes forming part of the financial statements.

Particulars (? crore)	FY 2025-26 (Standalone)	FY 2025-26 (Consolidated)	FY 2024-25 (Standalone)	FY 2024-25 (Consolidated)
Revenue from Operations, including other income	1,963.93	1,964.45	1,569.49	1,586.59
EBITDA	117.50	117.46	133.29	134.38
Profit Before Tax (PBT)	81.31	80.82	110.60	110.95
Profit After Tax (PAT)	60.24	59.75	86.72	86.97
Earnings Per Share (?)	1.97	1.96	2.85	2.85

During FY 2025-26, the Company recorded consolidated Revenue from Operations (including other income) of ? 1,964.45 crore, reflecting a 23.82% year-on-year growth from ? 1,586.59 crore in FY 2024-25. The growth was supported by healthy demand across domestic and international markets, backed by the Companys diversified product portfolio and strong market presence.

With a strong emphasis on high-quality products and a diverse product portfolio, the Company reported EBITDA of ? 117.46 crore in FY 2025-26, as compared to ? 134.38 crore in FY 2024-25. Net Profit stood at ? 59.75 crore, compared with ? 86.97 crore, The YoY decline in absolute EBITDA and PAT reflects the impact of the tariff disruptions caused by the U.S. sudden decisions in changing the tariffs. As of March 31, 2026, the Company had a pending order book of more than ? 583.3 crore, comprising domestic cables of ? 507.8 crore and exports of ? 75.5 crore. During the year, the Company incurred capital expenditure of ? 52.90 crore, as against ? 60.38 crore in FY 2024-25.

Details of Significant Changes in Key Financial Ratios

Particulars	FY 2025-26	FY 2024-25	% Variance	Reasons for Variance (>25%)
Current Ratio (in times)	2.42	3.61	(33.03)	Due to increase in Current liabilities
Debt Equity Ratio (in times)	0.15	0.03	352.57	Due to increase in total debts
Debtors Turnover Ratio (in times)	6.22	6.97	(10.76)	-
Inventory Turnover Ratio (in times)	4.91	4.44	10.79	-
Interest Coverage Ratio	4.87	11.18	(56.44)	Due to increase in finance cost arising from higher utilisation of working capital facilities and bill discounting impact of the tariff disruptions caused by the U.S. sudden decisions in changing the tariffs and one time cost from the new labour codes notified in November 2025
EBITDA Margin (%)	5.98	8.49	(29.56)
Net Profit Margin (in %)	3.15	5.59	(43.57)	Due to decrease in Net profit after taxes and increase in net total sales
Return on Equity (in %)	8.06	12.92	(37.61)	Due to increase in Net profit after taxes

RISK MANAGEMENT

The Company maintains a structured and comprehensive risk management framework to promptly identify, assess, and mitigate key business risks. The risk management process is implemented across all departments to safeguard operational and financial performance. Regular reviews guide the formulation of appropriate risk mitigation measures.

The Companys key risks and its mitigation strategies are listed below:

Risks	Impact	Mitigation
Competition Risk	Competition from domestic and global market participants poses challenges to the companys pricing strategy and competitive position.	With over 60 years of operating experience, the Company has established its strong market presence, reinforced by technological capabilities, diversified product portfolio, competitive pricing and relevant certifications. The Company emphasises developing innovative products aligned with changing consumer requirements, reinforcing brand equity through consistent quality and offering compelling value propositions to maintain its competitive position.
MacroEconomic Risk	Adverse macroeconomic factors, including economic slowdown, geopolitical developments, and inflationary pressure, may weaken demand and can affect production, revenue and performance.	The Company continuously monitors domestic and global economic development and evaluates potential implications for its operations. Indias economic growth outlook and easing inflation offer a supportive operating landscape amid uncertain global conditions. To evaluate geographic exposure, operational risk and market volatility, the Company leverages its experience and established business planning to maintain resilience during uncertain macroeconomic situations.
Raw Material Risk	Price volatility of key raw materials such as copper, aluminum, steel and PVC alongside potential supply disruption, shortages or delays, may exert pressure on margins, impacting operational and financial performance.	To ensure uninterrupted production and manage procurement costs, the Company maintains a structured inventory management framework. Strong internal controls constantly monitor commodity prices and enable timely mitigation, such as calibrated pricing that reduces the impact of fluctuating input costs on financial performance.
Currency Fluctuations Risk	The Company is exposed to fluctuating foreign exchange rates, arising from imports of raw materials and exports of finished products. Volatile exchange rates impact margins and overall financial performance.	The Company adopts a proactive approach to monitor currency movements and conduct periodic sensitivity analysis of foreign currency exposures. Additionally, in respect of raw materials, a natural hedge exists to the extent import requirements are offset by export realisations, thereby reducing net currency exposure. Hedging strategies, such as using forward contracts and longer-term instruments, are deployed to mitigate volatility and protect margins.
Technology Risk	Failure to maintain pace with technological developments or meet customer-specific technical and quality requirements can adversely affect order influence and market competitiveness.	The Company invests in innovation to improve product capabilities. Continuous product upgrades, led by an experienced R&D team, and process control mechanisms, enable the Companys alignment with evolving technological requirements and quality standards.
Statutory Compliance Risk	Failure to meet regulatory requirements and regulations can lead to fines, legal penalties and license revocation.	The Company mitigates statutory compliance risk through regular employee training, internal audits, legal consultation, and continuous monitoring of regulatory developments.
Concentration Risk	Excessive reliance on a limited number of customers could adversely affect the Companys revenues and profitability.	The Company reduces customer concentration through product innovation, sustaining consumer engagement, and industrial diversification, reinforcing revenue resilience.

INFORMATION TECHNOLOGY

Paramount Communications Limited has developed a resilient and scalable Information Technology (IT) infrastructure, led by an experienced IT team, that actively evaluates emerging technological developments. This enables the Company to constantly align its operational processes, cybersecurity practices and technology framework with evolving industry standards, including the effective deployment of its SAP-based enterprise systems.

Owing to its IT infrastructure, the Company supports remote working capabilities, ensuring uninterrupted business continuity. An advanced software platform and secure server environment enable the Company to improve operational efficiency, drive innovation across products, services, processes, and methodology and streamline workflows.

The Company is progressively adopting Artificial Intelligence (AI) across multiple levels of its operations from AI-enabled analytics for decision-making to process automation, these initiatives are aimed at improving efficiency, minimising downtime, and building a more intelligent and data-driven organisation, while complementing the Companys existing SAP-based enterprise backbone.

Additionally, the Company has introduced Paramount Parivar, a dedicated digital application tailored for retailers, electricians and end consumers. By bringing the entire ecosystem into a single integrated platform, this application improves access to schemes and benefits, facilitates reward accumulation through product scanning and allows point redemptions.

This digital initiative reinforces engagement across the distribution network by connecting stakeholders from manufacturing facilities to end consumers. It also offers digitally authenticated warranty certificates, improving transparency and trust. Paramount Parivar represents a significant step forward in digital integration within the electrical industry, and the Company is further exploring and implementing advanced software solutions to strengthen its business operations.

HUMAN RESOURCES

Paramount Communications Limited considers its employees as its most valuable assets and attributes its sustained operational excellence to a highly skilled and committed workforce across engineering, marketing, finance, technical support and other business functions. The Company has established comprehensive human resource policies aimed at fostering a productive, inclusive and collaborative work environment. These policies promote a culture of meritocracy, encourage employee engagement and align individual performance with the Companys long-term growth objectives.

Recognising the evolving expectations of the workforce, the Company continues to foster an inclusive and progressive work environment that supports continuous learning and capability enhancement. Paramount places significant emphasis on employee development through structured training programmes designed to strengthen both technical expertise and behavioural competencies. During the year, the Company made focused investments in building digital capabilities by conducting Artificial Intelligence (AI) training programmes across all departments to promote technology adoption, improve productivity and encourage innovation in day-to-day operations. Employees were also provided structured training on enterprise applications, including SAP HANA across various modules, Zoho CRM, Asana and MS Excel, to enhance business process efficiency, collaboration and effective utilisation of digital platforms. In addition, leadership development initiatives, managerial effectiveness programmes, problem-solving workshops and team-building interventions are regularly conducted to strengthen leadership capabilities, improve decision-making and drive organisational excellence.

Employee engagement continues to remain a key focus area in the Company, supported by performance-linked incentives, transparent communication and career opportunities.

Recognition and reward systems are deeply embedded in the Companys culture, acknowledging employee contributions and fostering a strong sense of ownership.

Paramount Communications Limited remains committed to maintaining high standards of occupational health, workplace safety and security and employee well-being through robust policies, systems and awareness initiatives, ensuring a safe and secure working environment across all its operations. The Companys employee strength stood at 1,900+ as on March 31, 2026, highlighting its stable and experienced workforce to support business operations.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has established a comprehensive internal control system commensurate with the size, scale, and complexity of its operations. The framework is designed to proactively identify and manage business risks, ensure accuracy and reliability of

financial reporting, enable timely and transparent financial and operational disclosures, protect assets and enhance compliance with applicable laws, regulations, and internal policies.

Paramount Communications Limited relies on its SAP-based enterprise resource planning system for real-time operational visibility and centralised data management. The Company continuously reviews and strengthens its SAP-related processes and internal controls to align with evolving business needs and industry-based practices. Clearly defined policies, procedures and organisational structure support orderly business conduct.

The internal audit function is carried out by M/s Jagdish Chand & Co., Chartered Accountants, who conduct periodic reviews across key function areas including accounting, SAP modules, human resources, finance and procurement. The internal audit reports are placed before the audit committee of the board to review the observations and recommendations and monitor the implementation of corrective actions every quarter.

OUTLOOK

The Company remains well positioned to capitalise on the growing demand for power transmission, renewable energy sectors and distribution infrastructure, supported by continued investments in capacity expansion, product diversification and market expansion. With the India wire and cable market projected to grow at a CAGR of 9.0% during 2026-2031 to reach USD 35.6 billion, and continued Government emphasis on capital expenditure, transmission and distribution infrastructure, and renewable energy capacity addition, the Company is well-placed to capture a growing share of this expanding market.

The Narmadapuram Greenfield facility, remains central to its medium-term growth strategy and is expected to strengthen the Companys manufacturing capabilities and facilitate its entry into high-value segments, including Extra High Voltage (EHV) cables up to 132 kV initially and specialised transmission conductors, E-Beam and specialised cables for the transmission sector, broadening its participation in Indias power infrastructure development.

The Company is focused on achieving ? 5,000 crore in revenue by FY31, with a strategy to double revenues every three to four years through capacity expansion, deeper domestic market penetration and export diversification. The Company also expects export margins to improve progressively as tariff conditions normalise, while maintaining a balanced growth strategy across domestic and international markets. Backed by these strategic initiatives, the Company remains confident of delivering sustainable long-term growth and creating enduring value for stakeholders. While near-term performance may continue to be influenced by global trade policy, commodity price volatility and geopolitical developments, the Companys diversified customer base, expanding manufacturing footprint, debt profile discipline and long-standing institutional relationships position it to pursue sustainable, long-term growth and deliver value to all stakeholders.

CAUTIONARY STATEMENT

The Management Discussion and Analysis may contain certain statements describing the Companys objectives, projections, estimates and expectations which may be ‘forward-looking statements within the meaning of applicable laws and regulations. These statements are subject to certain risks and uncertainties. Actual results may differ materially from those either expressed or implied in these statements, depending on the circumstances and factors such as economic conditions affecting demand & supply and price conditions in the domestic and international markets in which the Company operates, changes in government regulations and policies, tax laws and other incidental factors that could make a difference to the Companys operations.

The Company assumes no responsibility in respect of forward-looking statements, which may be amended or modified in future.