Power & Instrumentation (Gujarat) Ltd Management Discussions

Empowering the Future: From Core EPC to Clean and Connected Energy Solutions

With strategic forays into EHV and Solar EPC, PIGL is harnessing sectoral momentum to scale new frontiers in Indias power infrastructure transformation.

FY2024–25 was a pivotal year for Power & Instrumentation (Gujarat) Limited (PIGL), as we accelerated our transition from a traditional electrical EPC contractor to a forward-looking infrastructure enabler, poised to address Indias next wave of energy demands. Building on our legacy of precision, reliability, and executional excellence, we made strategic advances into two high-growth verticals Extra High Voltage (EHV) power transmission and Solar EPC that will define the future of the electrical infrastructure ecosystem.

Indias power sector is undergoing a structural transformation, driven by surging energy demand, rapid renewable integration, and government-led investments in grid modernization. With transmission infrastructure expected to attract over _3.5 trillion in investments by FY29 and a target of 500 GW of renewable capacity by 2030, the market is aligned for players like PIGL to step into higher-value opportunities. These industry tailwinds reinforce our belief in scaling capabilities across high-voltage infrastructure and clean energy solutions.

Our entry into the EHV segment positions us to play a critical role in strengthening national and state grids, supporting long-distance power evacuation, and integrating utility-scale renewable assets. Simultaneously, our expansion into Solar EPC aligns with the countrys green energy goals and enables us to offer turnkey solutions to industrial, commercial, and government clients seeking sustainable energy alternatives.

Backed by a robust order book, strategic investments in manufacturing (through increased stake in PECL), and a reputation for timely, quality execution, we are well-positioned to scale operations and expand geographically. The governments ongoing push for airport, urban, and rural electrification combined with our growing credentials in smart grid and renewable projects offers a fertile ground for sustained growth.

The sections that follow in this MD&A provide a detailed analysis of our financial performance, operational progress, sectoral outlook, strategic roadmap, and the risks and opportunities that lie ahead.

Economy Overview

Global Economy

Despite 2025s growth slowing to 2.8% amid trade-policy headwinds, Asia-Pacifics rapid electrification surge underscores resilient demand and clear opportunity.

Global Outlook at a Glance

Entering 2025, the world economy faces renewed headwinds as U.S. tariffs on China, Mexico and Canada—and ensuing retaliation have dampened investor confidence and slowed capital spending.

The IMFs April WEO cut its growth forecast to 2.8% for 2025 (down from 3.3% in January), citing trade-policy uncertainty as the key drag.

Energy & Commodities

After peaking in 2022, oil prices eased in 2024 as travel demand leveled off and electric vehicles gained share. Natural gas hit an all-time high driven by industry and power generation while coal use rose to record levels, led by Asias grid expansion.

Regional Bright Spots

China and India continue to outpace global averages, fueled by urbanization and massive grid-modernization projects. Demand for high-voltage transmission, distribution and renewables integration remains robust.

Looking into 2026, global growth is expected to gradually stabilize around 3.0% as trade tensions ease and policy frameworks become clearer. Energy markets should see continued moderation in oil volatility, while demand for gas and renewables remains strong, especially in Asia-Pacific.

Source: IMF IEA

Indian Economy

India remains the worlds fastest-growing major economy, with FY26 GDP growth projected at 6.2–6.7%.

Fiscal Framework projects The FY26 Union Budget continues the path of fiscal consolidation, targeting a deficit of 4.4% of GDP (vs.

4.8–4.9% in FY25), with capital expenditure rising to _11.21 lakh crore (3.1% of GDP). Key investments focus on agriculture, MSMEs, infrastructure (Jal Jeevan Mission, UDAN), R&D, and exports supported by healthy tax collections.

Monetary Policy

In April 2025, the RBI reduced the repo rate by 25 bps to 6.00% and adopted an accommodative stance to support liquidity and credit growth. The SDF rate stands at 5.75%, while the MSF and Bank Rate are at

6.25%, helping ease inflationary pressures.

Quarter	Projected GDP Growth (%)
Q1	6.5
Q2	6.7
Q3	6.6
Q4	6.3
Full Year	6.5

Sectoral Drivers & Power Demand

• Services (60%+ of GDP): Export-driven segments like software, BPO, and logistics fuel base-load power demand, particularly from data centers and hubs.

• Manufacturing: PLI schemes and "Make in India" initiatives drive factory and industrial power consumption.

• Agriculture: A good monsoon sustains rural electrification and off-peak irrigation demand.

• Infrastructure: Investments in T&D, rail, metro, airports, and Smart Cities require grid upgrades and peak-load capacity.

Digital & EVs: Data centers and rising EV adoption are creating new, high-reliability demand centers.Despite global uncertainties and moderated growth, Indias large domestic market, reform momentum, and balanced policy approach are expected to support continued economic expansion and rising electricity demand.

Source: PIB Deloitte

Industry Overview

Global Power Industry

In 2024, clean energy reached a historic milestone surpassing 40% of global electricity generation driven by record solar and wind growth, marking a decisive shift in the global power sector towards low-emission sources.

The global power sector is undergoing a transformative shift, led by record growth in clean energy particularly solar. In 2024, clean sources surpassed 40% of global electricity generation for the first time since the 1940s, driven by an 858 TWh surge in renewables. Solar generation, which grew 29% in 2024, has emerged as the fastest-growing source for the 20th consecutive year, while wind expanded by 7.9%.

Despite this progress, global electricity demand rose by 4.0% in 2024 boosted by extreme weather and increased cooling needs resulting in a 1.4% uptick in fossil-based generation and record emissions of 14.6 billion tonnes CO_ Emerging economies, especially China and India, are expected to drive 85% of demand growth through 2027, spurred by rising energy needs from AI, data centers, EVs, and heat pumps.

Looking ahead, low-emission sources are projected to meet all additional electricity demand from 2025 to 2027, with renewables accounting for 95% of the growth and surpassing coal in 2025. Nuclear generation is also set to rise, particularly in Asia.

Indias Position

India plays a pivotal role in the global energy landscape, with electricity demand expected to grow at 6.3% annually (2025–2027), outpacing its 2015–2024 average. It will contribute 10% of global demand growth, led by strong economic activity and rising cooling needs. While coal usage in advanced economies declines, Indias coal-based generation is expected to rise modestly, partially offset by the rapid expansion of clean power. Solar PV is projected to contribute over 10% of Indias electricity mix, complemented by new nuclear capacity additions.

Source: EMBER - Global Electricity Review IEA - International Energy Agency

Indian Power Industry Overview

India is the third-largest producer and consumer of electricity worldwide, with an installed power capacity of 442.85 GW

As of January 31, 2025, Indias total installed power capacity reached 466.24 GW. The energy mix reflects a strategic balance between conventional and rapidly growing non-fossil fuel sources. The breakdown of the energy mix as of January 31, 2025, is as follows :

• Thermal power remains the largest component, accounting for 53% of the total installed capacity. Within thermal, coal contributes 213.87 GW, gas 24.81 GW, lignite 6.62 GW, and diesel 0.59 GW.

• Renewable Energy Sources (RES), excluding large hydro, comprise 165.20 GW. As of December 2024, solar energy is the dominant renewable source with 97.86 GW, followed by wind power at 48.16 GW, biomass at 10.72 GW, small hydropower at 5.10 GW, and waste to energy at 0.62 GW.

• Hydro power contributes 46.97 GW.

• Nuclear power has an installed capacity of 8.18 GW.

The total non-fossil fuel generation capacity has shown significant growth,

December 31, 2024. The installed renewable energy capacity alone increased by an impressive 15.84%, from 180.80 GW in December 2023 to 209.44 GW in December 2024. While thermal power, predominantly coal, still constitutes a significant installed capacity, the rapid expansion in renewable energy and the ambitious targets for non-fossil fuels (500 GW by 2030) indicate a clear strategic intent. The continued reliance on coal for over half the capacity, alongside aggressive renewable energy expansion, suggests a pragmatic approach to energy transition. This approach balances the immediate need for energy security, given the growing demand, with long-term decarbonization goals. This balanced strategy minimizes immediate economic disruption while building future sustainable capacity. For businesses, this implies continued opportunities in both conventional power plant efficiency improvements and substantial growth in the renewable energy value chain, including manufacturing, project development, and grid integration. reaching217.62GWas of FY25* Until January 31, 2024

(Note: GW – Gigawatt, BU – Billion Unit)

Key Growth Drivers

Indias portion of power sectortheis fundamentally driven by a consistently increasing demand for electricity. Power consumption in India registered a 9.5% growth in FY23, reaching 1,503.65 billion units (BU), and further increased by over 8% to 127.79 BU in February 2024. Overall electricity generation stood at 1,739.09 BU in FY24, marking a 7.06% year-on-year growth. Thisrobustdemandisfueledbyseveralinterconnected factors. Industrial expansion is a primary booster, with the industrial sector accounting for the largest share of electricity consumption at 41.16% in FY22. As India continues its trajectory to become a global manufacturing hub, the energy requirements of this sector are expected to escalate significantly. Population growth, increasing electrification, and rising per-capita usage also provide substantial impetus. The success of schemes like Saubhagya has brought electricity to millions of households, contributing to a rise in per capita electricity consumption, which reached 24,453 Megajoule/Person in 2022. Furthermore, demand increased by 9% in 2023, largely attributed to the expansion and enhancement of infrastructure across the country. Looking ahead, the demand trajectory remains strong. Per capita consumption of electricity is estimated to reach 1,824 TWh xby FY27. The Central Electricity Authority (CEA) estimates Indias total power requirement to grow to 817 GW by 2030. This growth underscores the sustained need for power and implies a continuous requirement for infrastructure upgrades to support the growing load. Despite impressive growth in generation, India has experienced a deficit in meeting peak power demand over the last three fiscal years. As of September 2024, the peak power demand in the country stood at 241.585 GW.

Fiscal Year	Peak Demand (GW)	Peak Met (GW)	Deficit %
FY20	170.16	170.17	-0.4
FY21	186.03	188.15	-0.5
FY22	200.73	199.28	-0.7
FY23	215.88	207.23	-4.3
FY24	243.27	239.93	-1.7
FY25*	249.85	249.85	0

Source: IBEF - Power Industry Report Feb, 2025

Power Transmission Sector Overview

Indias transmission network is not just expanding it is transforming into the backbone of a clean, connected, and future-ready energy ecosystem. Indias power transmission sector is undergoing rapid expansion to support the countrys evolving energy landscape marked by rising electricity demand, accelerating renewable integration, and growing cross-border interconnections. As of March 31, 2025, India ranks as the worlds third-largest producer and consumer of electricity, with an installed capacity of 472 GW.

To address future energy needs and infrastructure gaps, Indias power sector is poised to attract investments of approximately _42 trillion over the next decade. This capital influx will be vital in modernizing outdated systems, facilitating seamless integration of renewables, and meeting the national target of 500 GW of non-fossil capacity by 2030.

The Government of India has prioritized significant upgrades in grid infrastructure, with inter-regional transmission capacity set to increase from 119 GW to 143 GW by 2027 and 168 GW by 2032. Concurrently, the Central Electricity Authority (CEA) has laid out transmission planning for 613 GW of renewable capacity by 2032.

Power demand in India is expected to grow at a CAGR of over 7%, fueled by factors such as increased industrial electrification, growing digital infrastructure (like data centers), and adoption of electric vehicles. In response, the transmission and distribution (T&D) network is being strengthened to ensure system resilience, reliability, and efficiency.

The National Electricity Plan (Transmission), developed by the CEA, presents a strategic blueprint to align grid capacity with the Governments clean energy goals. It outlines the transmission requirements to support 500 GW of renewable energy by 2030 and over 600 GW by 2032.

Further, the implementation of the CERC General Network Access (GNA) Regulations is expected to democratize access to the Inter-State Transmission

System (ISTS), offering greater flexibility and encouraging competitive procurement from Independent Power Producers (IPPs).

To support this scale of integration, transmission investments of _2.5–3.5 trillion are projected between FY25 and FY29 up from _2.6 trillion during FY19 to FY24. This surge will be driven by high-capacity transmission corridors, interstate grid modernization, and smart grid infrastructure.

In essence, Indias transmission sector is set to become the backbone of its energy transition bridging generation and consumption with efficiency, and sustainability.

Source: ICED Niti Aayog

Indian Renewable Energy overview

Indias renewable energy capacity surged to 165.2 GW by January 2025, achieving a 15.29% CAGR since FY16 and positioning the country as the worlds fourth-largest renewables market driven by strong policy support, rising investments, and a strategic push toward a 900 GW clean energy potential. As of July 2024, Indias combined installed renewable energy capacity, including biomass, waste-to-power, and waste-to-energy, stood at 150.27 GW. This is projected to increase to approximately 170 GW by March 2025, up from 135 GW in December 2023. Indias installed renewable energy capacity reached 165.2 GW in January 2025, demonstrating a Compound Annual

Growth Rate (CAGR) of 15.29% between FY16 and FY25. Currently, 45.5% of the nations total installed power capacity comes from non-fossil-based sources. India holds the fourth position globally in terms of total installed renewable energy capacity. The nations total power generation capacity was 462 GW as of December 2024, with renewables (including hydro) contributing 209.444 GW. The estimated renewable energy potential from commercially exploitable sources in India is substantial, at 900 GW.

Key Growth Drivers:

• India is expected to drive 35% of global energy demand growth over the next two decades, balancing energy availability, affordability, and sustainability.

• The country is actively transitioning to green energy through investments in natural gas, LNG, and hydrogen to support decarbonization.

• Investments in the renewable energy sector are projected to increase by 83% to approximately US$ 16.5 billion in 2024.

• The Union Budget 2025-26 allocated _20,000 crore (US$ 2.30 billion) each for nuclear energy and the PM Surya Ghar Muft Bijli Yojana.

Indian Solar Power Sector Overview

Indias solar power sector witnessed unprecedented growth in 2024, crossing 100 GW in capacity and recording a 167% year-over-year surge—reinforcing its trajectory toward 280 GW by 2030 and solidifying its position as the worlds fourth-largest solar market.

Indias solar power sector is experiencing immense growth due to the countrys favorable location in the solarbelt.AsofJuly2024,Indiassolarcapacityreached 100 GW. The target is to achieve 280 GW of solar power by 2030, representing over 60% of the total renewable energy capacity goal. Projections indicate that solar power capacity could reach 46% of Indias total power capacity by 2047, equating to approximately 856 GW. India ranks fourth globally in solar power capacity. The country added 16.4 GW of solar capacity between January and September 2024, a 167% year-over-year increase. In Q3 FY24, solar installations rose by 78% to 3.5 GW.

Key Statistics:

• As of September 2024, Indias cumulative installed solar capacity was 89.1 GW, with utility-scale projects making up over 86% and rooftop solar accounting for nearly 14%.

• Solar power contributes approximately 20% to Indias total installed power capacity and over 44% to its renewable energy capacity.

• The installed solar energy capacity has increased 26-fold in the last nine years, reaching 73.32 GW as of December 2023.

• A record 10 GW of solar capacity was added in Q1 2024, nearly a 400% year-over-year increase.

• In December 2023, solar power constituted 16.9% of total installed power capacity and 40.1% of total installed renewable capacity.

• Maharashtra has approved 20,000 MW of solar projects and is boosting solar pump storage to 55,000 MW.

• Rajasthan leads in state-wise solar power generation with 42,271.22 MU as of September 2024, followed by Gujarat (38,373.07 MU) and Karnataka (35,492.62 MU).

• Shirdi is poised to become Maharashtras first solar-powered town.

• The year 2024 saw record-breaking solar growth, including 24.5 GW of solar capacity and a 47% share in the rooftop solar (RTS) sector.

Government Initiatives & Investments:

• The PLI Scheme for High EfficiencySolar PV Modules aims to establish gigawatt-scale manufacturing capacity, with 39,600 MW of manufacturing units approved under Tranche-II.

• The Solar Park Scheme has led to the approval of 50 solar parks with a total capacity of 37,490 MW, of which 10,401 MW has been commissioned.

• The Interim Budget for 2024-2025 significantly increased the fiscal allocation for solar power grid infrastructure development to _8,500 Crore (US$ 1.02 billion).

Top 10 state-wise solar power generation in India (September 2024)

Rank	State	Capacity (MU)
1	Rajasthan	42,271.22
2	Gujarat	38,373.07
3	Karnataka	35,492.62
4	Tamil Nadu	30,356.78
7	Maharashtra	18,396.12
8	Madhya Pradesh	15,171.65
5	Andhra Pradesh	14,839.43
6	Telangana	102,65.45
10	Kerala	7,497.46
9	Uttar Pradesh	5,844.44

(Note: MU – Million Unit)

Source: IBEF - Renewable Energy May Report Feb 2025

Airport Infrastructure Development in India

The Government of India is investing _ 1 lakh crore (US$ 12.06 billion) to enhance the nations aviation infrastructure. The goal is to increase the number of operational airports to 220 within the next five years, significantly improving connectivity.

In June 2023, Union Civil Aviation Minister Mr. Jyotiraditya Scindia announced plans to build 200-220 new airports, heliports, and water aerodromes by 2025. As of January 31, 2023, 73 previously unserved or underserved airports, including nine heliports and two water aerodromes, have been operationalized under the UDAN scheme since 2017.

In February 2022, the Airports Authority of India (AAI) and other developers set a capital outlay target of _ 91,000 crore (US$ 12.08 billion) for the airport industry. The Union Budget 2023-24 also announced the revival of 50 additional airports, heliports, water aerodromes, and advanced landing grounds to further enhance regional air connectivity.

By 2028, the MRO industry is likely to grow over US$ 2.4 billion from US$ 800 million in 2018. Revenues of domestic MRO services providers in India are expected to triple by FY28, driven by a doubling aircraft fleet, government support, and ongoing MRO capex at airports, according to Crisil.

These initiatives underscore the governments commitmenttobuildingastrongaviationinfrastructure and promoting economic growth across the country. Source: IBEF - Aviation Industry Report Feb, 2025

Extra High Voltage Segment Opportunities in India

India is experiencingsignificantgrowth in the extra-high voltage (EHV) segment of the power transmission sector, driven by increasing electricity demand, infrastructure development, and renewable energy integration. This growth is fueled by investments in new transmission lines, grid modernization, and the expansion of renewable energy projects.

Key Drivers:

• Rising Electricity Demand: Indias growing population, urbanization, and industrialization are leading to a surge in electricity consumption, necessitating robust and efficient power transmission systems.

• Infrastructure Development: Large-scale infrastructure projects, including smart cities and industrial corridors, require significant transmission capacity, boosting the demand for EHV solutions.

• Renewable Energy Integration: High voltage cables and equipment are crucial for transmitting power from renewable energy sources like solar and wind farms to the grid, further driving the EHV segment.

• GovernmentandPrivateInvestments:Investments in upgrading and modernizing the existing power transmission infrastructure are also contributing to the growth of the EHV market.

Opportunities in EHV:

• Transmission Lines: Development of new extra-high voltage (EHV) transmission lines, including 765kV and 400kV, to facilitate bulk power transmission over long distances and integrate renewable energy sources.

• Substations: Establishment of new EHV substations to step up or step down voltage levels and ensure efficient power flow across the grid.

• Underground Cables: Increasing adoption of EHV underground cables for power transmission in urban areas and sensitive locations, providing a reliable and aesthetically pleasing solution.

• HVDC Transmission: Growing interest in High Voltage Direct Current (HVDC) technology for long-distance power transmission, especially for integrating renewable energy and connecting remote power sources.

• Renewable Energy Projects: Opportunities for EHV equipment and solutions in connecting large-scale solar and wind farms to the grid.

• Grid Modernization: Modernization of existing power grids with advanced EHV equipment and technologies to enhance grid stability and reliability.

• Transformer Manufacturing: The increased demand for EHV transformers, both for transmission and distribution, presents significant for manufacturers. Source: Mercom Clean Energy Insights Mobility Forsights

Government Initiative

To support Indias transition to a sustainable and energy-efficient introduced a series of transformative initiatives aimed at expanding the renewable energy portfolio, enhancing power distribution, and modernizing the nations grid infrastructure.

PM Surya Ghar: Muft Bijli Yojana

Launched on February 13, 2024, this initiative aims to equip government buildings across India with rooftop solar systems, significantly boosting the nations renewable energy capacity. Tamil Nadu is at the forefront, expanding its solar capacity under the guidance of the Tamil Nadu Energy Development

Agency. This reflects the Government of Indias commitment, through the Ministry of New and

Renewable Energy (MNRE), to advance renewable energy with financial,technical, and skill development support.

Overall Count

Application (No.) - 55,49,025

Installation (No.) - 11,62,152

Household Covered (No.) - 14,67,796

Installation Capacity (Mw) - 4394.27

Subsidy Released(Cr) - _ 8,145.06

Revamped Distribution Sector Scheme (RDSS)

Under RDSS, proposal for 4.96 lakh Household electrification works the State of Uttar Pradesh, Rajasthan and Andhra Pradesh for a cost of Rs. 813 crores.

Introduced to enhance operational efficiency and reduce Aggregate Technical & Commercial losses in power distribution, RDSS includes deploying millions of smart meters and improving the sub-transmission and distribution networks. With a budget of _ 3.03 lakh crore, including _ 97,631 crore in government support, RDSS aims to cut AT&C losses to 12-15% by FY 2024-25. Proposals have been approved for electrifying 4.96 lakh households across Uttar Pradesh, Rajasthan, and Andhra Pradesh, costing _ 813 crore, alongside 87,863 householdsopportunities under the PM-JANMAN initiative. Our company, having successfully executed projects under RDSS, is optimistic about future involvement to enhance power distribution and extend electrification to underserved areas.

National Smart Grid Mission (NSGM)

Transforming Indias power infrastructure NSGMsfuture, the government has

Smart Grid initiatives enhance reliability, efficiency, and consumer empowerment across the energy sector.

Established in 2015, the NSGM is transforming Indias power infrastructure by enhancing grid reliability, integrating renewable energy, and empowering consumers through smart meters. The mission supports capacity-building through training programs for distribution sector personnel, promoting a more reliable and efficient energy landscape. Key milestones include the deployment of smart meters and the release of standard bidding documents, with a target of 1 crore smart meters by 2024.

Year-wise Journey of Smart Grid Development in India

Year	Key Developments
2010	ISGTF & ISGF formed
2012	Pilot Projects Sanctioned
2013	Smart Grid Vision and Roadmap Launched
2015	NSGM Established, IS 16444 & Model SG Regulations Released, IS 15959 & National Tariff Policy Announced
2016	NSGM Operational, Model DPR & RFP Released
2018 for	SGKC Inaugurated
2019	NSOM Framework Launched
2021	RDSS for 250 million Smart Meters Announced
2022	AMISP Standard Bidding Documents Released
2023	60 Lakh Smart Meters Installed
2024	1 Crore Smart Meters Target, Progressing

Through these initiatives, the government is not only addressing current energy challenges but also laying the groundwork for a greener and more resilient power sector.

Source:

Ministry of New and Renewable Energy, Government of India - Operational Guidelines for Saturation of Government Buildings with Rooftop Solar under the PM-Surya Ghar: Muft Bijli Yojana scheme.

National Smart Grid Mission, Ministry of Power Official

Website

Company Overview

Established in 1975, Power & Instrumentation (Gujarat) Limited (PIGL) has built a strong reputation as a trusted electrical EPC contractor across industrial and commercial sectors. Under the leadership of Mr. Padmaraj Pillai, PIGL continues the visionary legacy of founder Mr. D. Padmanabhan Pillai. With a proven track record of successful projects for government, semi-government, and private clients, the company is known for its reliability, timely execution, and comprehensive expertise in electrical installations, maintenance, and repairs.

Recent developments

Major Airport Contract: Secured a _20.93 Cr contract from Ahmedabad International Airport Ltd. (Adani Group) for substation development at Sardar Vallabhbhai Patel International Airport, to be completed in four months from May 2024.

Electrification Project in Jharkhand: Awarded a _28.41 Cr contract by Jharkhand Bijli Vitran Nigam Ltd. for rural electrification in Sahibganj District under the

Mukhyamantri Ujjawal Jharkhand Yojana; execution timeline of 18 months.

Specialized Appointment by AAI: Appointed as a specialized agency by Airports Authority of India for complete power system design, substation installation, and energy management systems.

Nuclear Fuel Complex, Kota: Successfully completed a _10.80 Cr high-voltage power infrastructure project, earning commendation from NFC for quality and technical excellence.

Strategic Investment in PECL: Initiated plans to increase stake in Peaton Electricals Company Limited from 15% to 60%, leveraging its Siemens-certified manufacturing license to diversify offerings and strengthen market presence.

Financial performance

(In _ Lakhs)

Particulars	FY24	FY25
Revenues	9,749	16,884
EBITDA	1,236	1,959
EBITDA (%)	13	11
PAT	589	1,175
PAT (%)	6	7
EPS in (_ )	4.7	7.8

In FY25 PIGL demonstrated exceptional top-line growth in FY25, with revenues surging by 73.2% to _ 16,884 Lakhs from _ 9,749 Lakhs in FY24. This significant increase reflects a strong demand for our services and successful execution of new projects. The company continue to focus on expanding our market reach and enhancing our project capabilities to sustain this growth momentum.

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) increased by a robust 58.5% to

_ 1,959 Lakhs in FY25 from _ 1,236 Lakhs in FY24. This reflects a healthy growth in our operational earnings, stemming from the increased scale of our business. While the absolute EBITDA grew substantially, the EBITDA margin saw a slight moderation from 13% in FY24 to 11% in FY25.

Our Net Profit After Tax (PAT) nearly doubled, growing by 99.5% to _ 1,175 Lakhs in FY25 from _ 589 Lakhs in FY24. This strong performance at the bottom line highlights our effective management of overall expenses, including interest and taxes. The PAT margin improved by 1% to 7% in FY25 from 6% in FY24. This demonstrates our ability to convert revenue into a higher net profit despite the slight moderation in EBITDA margin.

Our Earnings Per Share (EPS) significantly increased from _ 4.7 in FY24 to _ 7.8 in FY25, a growth of 66.0%. This reflects the substantial increase in our net profitability and directly benefits our shareholders.

SWOT Analysis

Strengths

• Long-Standing Industry Presence: Since our founding in 1975, weve become a trusted name in electrical contracting and equipment supply. Our deep-rooted experience and relationships, particularly with clients like the Adani Group, have solidified our position in the market.

• Strategic Growth through Acquisitions: Acquiring a controlling stake in Peter Electrical Company Limited is a strategic move that boosts our manufacturing capabilities, allowing us to offer a broader range of electrical solutions, especially in the rapidly growing electrical panels and substations segment.

• Diverse Project Portfolio: With an order book of around _ 40,000 lakhs and a pipeline of varied projects, were well-equipped to handle complex tasks and deliver them on time. This diversity ensures were not overly reliant on any single sector or client, which helps in maintaining a steady flow of business.

Weaknesses

• Limited Sectoral Diversification: While our focus on electrical contracting has served us well, we recognize that broadening our horizons into sectors like renewable energy could reduce risk and open up new revenue streams.

• Regional Concentration: portion of A significant our projects is centered in regions like Gujarat and Rajasthan. While this gives us an edge in those areas, it also means were somewhat exposed to regional risks, whether they be economic, political, or environmental.

• Execution Challenges: The larger and more complex the project, the greater the risk of delays or cost overruns. While weve been successful in managing these risks so far, they remain a concern that we must continue to address.

Opportunities

• Expansion in the Transmission Sector: Gujarats planned _96,000 crore investment in transmission projects is a huge opportunity. Given our expertise and track record, were in a strong position to secure significant contracts in this space.

• Operational Expansion in Solar EPC: With the increasing demand for renewable energy, we see a strategic opportunity to expand our operations into Solar EPC. Leveraging our existing capabilities, we can diversify into this rapidly growing sector, positioning ourselves as a key player in Indias transition to sustainable energy.

• Growing Demand for Compact Busway Systems: The development of compact busway systems is now mandated for buildings over 10 stories, addressing critical safety concerns in high-rise electrical installations. This regulatory push creates a significant market opportunity, with an estimated market size of _1800-2000 crores. We are well-positioned to lead in local production, filling the current gap where existing manufacturers cater to only _ 700 crores of this potential demand.

• Government Infrastructure Initiatives: The governments focus on expanding Indias electrical infrastructure aligns perfectly with our growth strategy. With approximately _4.5 lakh crores in tendering expected over the next few years, we see a great opportunity to increase our market share.

• Innovation in Electrical Solutions: Were continuing to invest in R&D, particularly in developing compact and efficient electrical systems. This will not only keep us ahead of industry trends but also ensure were meeting the evolving needs of our customers.

Threats

• Rising Competition: The electrical contracting industry is becoming more competitive, with new players entering the market. To stay ahead, we must continue to innovate, maintain high quality, and deliver projects on time.

• Regulatory and Compliance Challenges: As we grow and diversify, the complexity of complying with various regulations increases. Its crucial that we stay on top of these requirements to avoid any legal or operational hiccups.

• Delays in Government Payments: One significant challenge we face is the occasional delay in payments from government contracts. This can strain our cash flow and create uncertainty in financial planning, making it crucial for us to manage working capital effectively and maintain strong relationships with our government clients.

Risk and Concerns:

The Company has established a comprehensive mechanism to identify, assess, monitor, and mitigate various risks to its key business objectives. Key business risks and corresponding mitigation strategies are outlined below:

Business Risk

To mitigate the risk of heavy reliance on any single business for revenue, the Company has implemented a strategy of launching new products and services, expanding its operations globally, and diversifying into different business segments. This strategy has yielded positive results, leading to a diversified -enue stream. Additionally, to reduce dependence on a few large clients, the Company has actively worked to diversify its client base.

The Company focuses on adding value for its clients by offering superior quality services and maintaining a strong franchise with investors and end-users, effectively mitigating risks arising from price competition.

Legal & Statutory Risk

The Company hasnosignificantlitigation related to contractual obligations pending in any court in In-dia or abroad. The Company Secretary, along with compliance and legal functions, advises on issues related to legal compliance and works to prevent any violations. A quarterly report on the Companys compliance initiatives across various jurisdictions is submitted to the Board by the Company Secretary. The Company also seeks independent legal advice whenever necessary.

Human Resource Attrition Risk

Power and Instrumentation (Gujarat) Limited recognizes its employees as key assets. In a highly competitive market, managing attrition is a significant challenge. The Company prioritizes talent retention through various efforts, including offering competitive salaries and clear growth paths for talented individuals.

Macroeconomic Risks

The Companys business can be influenced by changes in government policies, taxation, increasing competition, and economic uncertainties in both the Indian and international markets where it operates.

Mitigation Strategy

The Company adheres to well-defined conservative internal norms. It maintains a favorable debt/equity ratio, ensures moderate liquidity, and fosters strong relationships with clients who have a timely payment track record. Before bidding, thorough due diligence is conducted, and efforts are made to expand into new markets to mitigate adverse conditions. Additionally, the Company has diversified -graphically and across multiple business segments, thereby reducing dependency on any single country or market.

Operational Risks

The Companys operations and financial condition could be adversely impacted if its growth strategiesrev are not successfully implemented. Competition from other firms or changes in the products or processes of the Companys customers could lower market prices and demand for the Companys products, thereby reducing cash flow -uct liability claims may negatively affect the Companys operations and finances.

Mitigation Strategy

The Company rigorously monitors prices and adopts suitable strategies to address adverse situations. It also continuously adopts technological innovations to enhance operational efficiency and maintain competitiveness.

Other Risks

The Company is exposed to risks and fluctuations in foreign exchange rates, raw material prices, and overseas investments.

Audit and Internal Control System

In compliance with the Companies Act, 2013, the Company maintains adequate Internal Financial Controls (IFC) that operate effectively. Internal Financial Controls refer to the policies and procedures adopted by the Company to ensure orderly and efficient business operations. This includes adherence to company policies, safeguarding assets, preventing and detecting fraud and errors, ensuring the accuracy and completeness of accounting records, and timely preparation of reliable financial information.

The Companys assessment process ensures that adequate controls exist and are supported by clear documentation. This process involves scoping and planning to identify and map significant and processes based on materiality. Risks are identified, associated controls are mapped, and, if necessary, remediation is implemented. These controls are tested to assess their operating effectiveness, with auditors performing independent testing.

Raw Material Prices

The prices of basic major raw materials used in our manufacturing process viz. stainless-steel scrap / flats of various grades does not affect much, as we itsoperationsbothgeo are working in open market scenario.

Human Resource

Our Company believes that human capital is key to bring progress. The Company believes in maintaining cordial relations with its employees, which is one of the key pillars of the Companys business. The Companys HR policies and practices are built on core values of Integrity, Passion, Speed, and Commitment. The Companys focus is on recruitment of good talent and retention of the talent pool. The Company is hopeful and confident of achieving the same to be able to deliver results and value for our shareholders. As on March 25, 2025, the total employees on the Companys rolls stood at 62.

Accounting Policies

The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year. The financial statements have been prepared under the historical cost convention on an accrual basis. The management accepts responsibility for the integrity and objectivity of the financial statements, as well as for the . Additionally,prod various estimates and judgment used therein.

Disclosure Of Accounting Treatment In Preparation Of Financial Statement:

The Company has followed all relevant Accounting Standards laid down by the Institute of Chartered Accountants of India (ICAI) while preparing Financial Statements.

Cautionary Statement

Statements in the management Discussion and Analysis describing the Companys expectations or predictions may be forward looking within the meaning of applicable securities, law and regulations. Actual results may differ materially from those expressed in the statement. Important factors that could influence -erations include global and domestic supply and demand conditions affecting selling prices of finished goods, input availability and prices, changes in government regulations, tax laws, economic developments within the country and other factors such as litigation and industrial relations.