Plaza Wires Ltd Management Discussions

GLOBAL MARKET OVERVIEW

The global economy continued to demonstrate resilience during the financial year 2025-26 despite geopolitical tensions, evolving trade policies, supply-chain disruptions and uncertainty surrounding global commodity and financial markets. According to the International Monetary Fund (IMF), global economic growth is projected at 3.3% in 2026 and 3.2% in 2027. The outlook is supported by technology-related investments, fiscal and monetary support, improving financial conditions and the adaptability of the private sector. At the same time, geopolitical developments, trade-related disruptions, commodity price volatility and the possibility of renewed inflationary pressures continue to remain key risks to the global economic outlook.

For the electrical and wire & cable industry, the global transition towards electrification continues to provide structural growth opportunities. Increasing investments in electricity generation, transmission and distribution infrastructure, renewable energy, electric mobility, data centres, telecommunications and industrial automation are contributing to sustained demand for electrical cables and related products.

Global electricity consumption is expected to continue increasing, supported by industrialization, digitalization, cooling demand, electric mobility and the growing deployment of electricity-intensive technologies. The expansion of renewable energy projects is also creating additional requirements for power evacuation, transmission and distribution infrastructure. These trends are expected to support long-term demand for wires and cables across residential, commercial, industrial, infrastructure and renewable energy applications.

The global wire and cable industry, however, remains sensitive to fluctuations in the prices of key raw materials, particularly copper and aluminum. Changes in energy costs, freight rates, foreign exchange rates, international trade policies and geopolitical conditions may also influence input costs, supply chains and profitability. Accordingly, manufacturers are increasingly focusing on operational efficiency, product quality, supply-chain resilience and prudent management of raw-material costs.

INDIA OUTLOOK

The Indian economy continued to maintain a strong growth trajectory during FY 2025-26, supported by resilient domestic demand, infrastructure development, investment activity and growth in manufacturing and services. Indias real GDP growth was estimated at 7.4% during FY 2025-26, reaffirming its position among the fastest-growing major economies.

Continued Government spending on infrastructure, housing, power, renewable energy, transportation and digital infrastructure is creating a favourable environment for the electrical and allied industries. Rising urbanisation, industrialisation and household electrification are further contributing to increasing electricity consumption.

Indias ongoing energy transition is also expected to provide significant opportunities for the power and electrical equipment sector. The countrys focus on renewable energy and its target of achieving 500 GW of non-fossil fuel-based installed power capacity by 2030 will require substantial investments in power generation, transmission and distribution infrastructure.

Against this backdrop, the Indian economy is expected to provide a supportive operating environment for the wires and cables industry, with increasing demand arising from infrastructure development, renewable energy, construction, industrialisation and rising electricity consumption.

INDIAN WIRES AND CABLES INDUSTRY

The Indian wires and cables industry forms a critical part of the countrys electrical infrastructure and is closely linked to the growth of power generation, transmission and distribution, construction, real estate, industrial manufacturing, renewable energy, transportation and telecommunications.

The industry is expected to remain on a healthy growth trajectory, supported by Indias infrastructure development, increasing electrification, urbanisation, expansion of renewable energy capacity and growing electricity consumption. Demand is also being supported by the replacement and upgradation of ageing electrical infrastructure and increasing consumer preference for reliable, safe and quality-certified electrical products.

The residential and real estate sectors continue to represent important end-use markets for wires and cables. At the same time, infrastructure development, industrial expansion, renewable energy projects, railways, metro projects, data centres and other large-scale projects are creating opportunities across commercial and industrial applications.

The increasing adoption of renewable energy is expected to be an important structural driver for the industry. Solar and wind power projects require extensive cabling for power generation, collection, evacuation and grid connectivity. Similarly, the growth of electric vehicles and charging infrastructure, data centres, telecommunications and digital infrastructure is creating additional demand for electrical and specialised cabling solutions.

The industry is also witnessing increasing emphasis on product quality, safety, energy efficiency and compliance with applicable standards. This trend is favourable for organised manufacturers with established brands, manufacturing capabilities, quality-control systems and extensive distribution networks.

Nevertheless, the wires and cables industry continues to face challenges, including volatility in copper and aluminium prices, intense competition, changing customer preferences, regulatory requirements and pressure on margins. Efficient procurement, inventory management, cost optimisation, product differentiation and effective pricing mechanisms therefore remain important for sustainable profitability.

A Brand PLAZA CABLE is a familiar name in the industry and owing to our past legacy and we plan to gain energy from the same. We are not only focussing on current operations and developments but also looking to future for expanding our business and operations. The PLAZA CABLE has been fortunate to have strong connection with major industrial players because of qualitative products matching with the requirements. The factory being located in the state of Baddi, Himachal Pradesh which is largest industrial growing state and has immense opportunities in wires and cables industry. Further, a new plant has been established and commence its Business operations in Barotiwala, Himachal Pradesh.

Over our operating history of more than a decade, our supply chain model predominantly comprises of our network of authorized dealers, distributors, retailers and C & F agent who in turn supply our products to retail outlets in India. We have a wild network of authorized dealers and distributors pan India for the period ended on March 31, 2026. We supply our products across various states, mainly in states of Delhi, Uttar Pradesh, Haryana, Kerala, Rajasthan, Dehradun, Mumbai, Punjab and Guhwahati. We manage our sales and marketing activities through our registered office in Delhi, and branch offices and C & F agent at various locations. We had customers expanded to 32 states and states/union territories based on March 31, 2026.

We sell our products through a variety of distribution channels depending on the geography and industry norms and trends. We select our dealers & distributors based on their sales network, market reputation and financial strength including sales and 2) Securing government tenders for supply to government projects and 3) Direct sales to infrastructure projects.

OPPORTUNITIES AND THREATS

The Indian wires and cables industry has significant growth opportunities due to rapid infrastructure development, urbanisation, expansion of power transmission and distribution networks, renewable energy projects, railway electrification, electric vehicles, data centres and 5G connectivity. Government initiatives to improve electricity access and expand renewable energy capacity are expected to increase demand for power and specialty cables. Growing construction activity in residential and commercial buildings also provides opportunities for organised cable manufacturers. In addition, Indian companies have the potential to increase exports and benefit from the global China+1 supply-chain strategy. Demand for premium products such as fire-resistant, low-smoke, solar, high-voltage and specialised industrial cables can also help manufacturers improve profitability.

However, the industry faces several threats. Volatility in copper and aluminium prices can significantly affect production costs and profit margins, while intense competition among organised manufacturers can create pricing pressure. Competition from the unorganised sector and counterfeit or low-quality products remains another challenge, particularly in the residential market. Companies also face high working-capital requirements because of expensive raw materials and delayed payments from large infrastructure customers. Delays in government and private infrastructure projects can affect sales and capacity utilisation. Furthermore, changes in regulations, supply-chain disruptions, currency fluctuations and a slowdown in construction or infrastructure spending may negatively affect the industry. Therefore, while the Indian wires and cables industry has strong long-term growth potential, companies need effective cost management, strong quality standards, technological innovation and efficient working-capital management to remain competitive.

STRENGTH

The Indian wires and cables industry has strong growth potential due to its wide and diversified customer base across power transmission and distribution, infrastructure, construction, renewable energy, railways, telecommunications and industrial sectors. The industry benefits from Indias large domestic market, increasing urbanization and rising electricity demand. Established companies have strong brands, extensive distribution networks, modern manufacturing facilities and established relationships with institutional and industrial customers. Growing emphasis on electrical safety and quality is also supporting the shift toward organized and branded manufacturers. In addition, increasing demand for specialized products such as high-voltage, fire-resistant, solar and industrial cables provides opportunities for product diversification and higher-value growth.

BUSINESS OVERVIEW

Plaza Wires Limited (the Company) is engaged in the manufacturing and sale of wires and the sale and marketing of Low Tension (LT) aluminium cables and fast-moving electrical goods under its flagship brand PLAZA CABLES and other brands, including Action Wires and PCG . The Company offers a diverse range of electrical products, including wires and cables, electric fans, water heaters, switches and switchgears, PVC insulated electrical tapes, PVC conduit pipes and accessories.

The Company is an ISO 9001:2015 and ISO 14001:2015 certified organisation and has established itself as a growing player in the wires and cables industry, particularly in the Northern region of India. The Company continues to focus on strengthening its product portfolio, expanding its market presence and enhancing operational capabilities to cater to the growing demand for electrical and infrastructure-related products.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the year under review, the Company achieved Revenue from operations of Rs. 3180.58 Million as compared to Rs. 2181.75 Million in the previous financial year. Further, the Company has earned profit after tax and exceptional items of Rs. 73.03 Millions in the current financial year as against profit of Rs. 28.84 Millions in the previous financial year.

KEY STANDALONE FINANCIAL RATIOS

PARTICULARS	FY 2025-26	FY 2024-25	EXPLANATION FOR CHANGE IN THE RATIO BY MORE THAN 25% AS COMPARED TO THE PREVIOUS YEAR
Debt Service Coverage Ratio	2.95	1.69	Change occurred due to increase in Net profit and Non Cash Operating expense.
Return on Equity ratio	5.80%	2.39%	Change occurred due to increase in net Profit.
Net Capital Turnover Ratio	4.13	2.31	Change Occurred due to increase in Turnover.
Net Profit Ratio	2.30%	1.32%	Change occurred due to increase in net profit.
Inventory Turnover Ratio	6.40	4.88	Change occurred due to increase in Turnover
Return on Capital Employed	8.07%	4.64%	Change occurred due to increase in Net Profit.
Return on Investment	5.67%	73.64%	Return on Investment (ROI) is not applicable since the company do not have any significant investment.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

Human capital is the most essential part of the Company. The Company keeps promoting a collaborative work environment where all the employees feel safe and a part of the Company. The Human Resources policies of the Company are aimed at attracting, nurturing and retaining talent in a constantly evolving business environment while ensuring trust, transparency and teamwork amongst its employees.

The Company recognizes the importance of human resources in realising its growth ambitions and believes in nurturing talent within the organization to take up leadership positions. During the year Company continued to maintain healthy and cordial relationship with its employees.

FUTURE OUTLOOK

The global FIBC industry is expected to witness sustained growth, driven by increasing demand for efficient and sustainable bulk packaging solutions across the chemicals, pharmaceuticals, food products, agriculture and construction sectors. Indias competitive manufacturing capabilities, skilled workforce and growing integration with global supply chains continue to create significant opportunities for domestic manufacturers. While raw material price volatility, geopolitical uncertainties and evolving trade policies may pose challenges, the Company remains focused on driving sustainable growth through operational excellence, product innovation, prudent risk management and a customer-centric approach. The Company will also continue to leverage its BRC Packaging Certification, ISO Certifications and other internationally recognized quality standards to strengthen its presence in food, pharmaceutical and other quality-sensitive industries, while expanding its export footprint and creating longterm value for all stakeholders.

EXPORTS

Plaza Wires Limited has expanded its business operations by introducing their products internationally. In the Financial Year 2025-26, no export has been made by the company hence no revenue has been generated during the period under review. Further, the company is focussing to cater international market covering major countries in the next upcoming financial years.

RISKS AND CONCERNS

The wire and cable industry faces several risks that may affect profitability, operational efficiency, and future growth. Volatility in raw material prices, particularly copper and aluminium, can significantly impact production costs and margins. Supply-chain disruptions, including shortages, transportation delays, and dependence on key suppliers, may affect timely delivery and production schedules.

The industry is also exposed to intense competition and pricing pressure, which can limit margins, particularly in commoditized product segments. Regulatory and quality compliance requirements are becoming increasingly important, requiring continuous investment in testing, certification, safety, and environmental standards. In addition, technological changes and the shift toward renewable energy, smart grids, electric vehicles, and advanced cabling solutions require companies to continuously upgrade their product portfolio and manufacturing capabilities.

Other concerns include foreign exchange fluctuations, project delays in infrastructure and construction sectors, availability of skilled manpower, and increasing environmental, health, and safety expectations. Effective raw-material procurement, cost management, supply-chain diversification, product innovation, and strong quality controls will therefore remain critical for managing these risks and sustaining long-term growth.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

The Company has established a robust internal control framework commensurate with the size and nature of its operations. The framework is designed to safeguard assets, ensure the accuracy of financial records, facilitate regulatory compliance and support effective risk management. Internal controls are supported by well-defined policies, standard operating procedures and periodic reviews by the Internal Auditor, Management and Audit Committee. During the year, no material weakness was observed in the design or operating effectiveness of the Companys internal control systems. The Company remains committed to continuously strengthening its governance and control environment through process improvements and technology driven initiatives.

DISCLOSURE OF ACCOUNTING TREATMENT

The Company prepared its Financial Statements to comply with the Accounting Standards specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended from time to time. These Financial Statements includes Balance Sheet as at 31st March 2026, the Statement of Profit and Loss including Other Comprehensive Income, Cash Flow Statement and Statement of changes in equity for the financial year ended on 31st March, 2026, and a summary of significant accounting policies and other explanatory information (together hereinafter referred to as Financial Statements).

CAUTIONARY STATEMENT

Statements in this report describing the Companys objectives, projections, estimates and expectations may constitute forward looking statements within the meaning of applicable laws and regulations that involve risks and uncertainties. Such statements represent the intention of the Management and the efforts being put into place by them to achieve certain goals. Actual results might differ materially from those either expressed or implied in the statement depending on the circumstances. Therefore, the investors are requested to make their own independent assessments and judgments by considering all relevant factors before making any investment decision.

	For and on behalf of
	Plaza Wires Limited
	SANJAY GUPTA
Date: 13th August, 2026	Chairman and Managing Director
Place: Delhi	DIN:00202273