Schneider Electric Infrastructure Ltd Management Discussions

Indias economic progress, expanding infrastructure, and decisive policy push for clean energy and digitalization are reshaping the nations development priorities. At the heart of this transformation, we at Schneider Electric Infrastructure Limited (SEIL) have been playing a pivotal role by delivering intelligent, localized, and future-ready solutions that address the evolving needs of energy management and distribution. Since our inception in 2011, we have been enabling the transition to smarter infrastructure through advanced technologies such as IoT, AI, and predictive analytics, empowering businesses to drive efficiency, resilience, and sustainability.

Our comprehensive portfolio spans transformers, switchgears, protection relays, distribution management systems, and software platforms—positioning us to modernize Indias power infrastructure and support critical growth sectors including power and grid, data centers, oil and gas, metro, metals, and mining. At the center of this offering is our flagship EcoStruxure™ platform, which enables customers across industries to digitize operations, enhance energy reliability and safety, and reduce environmental impact.

Backed by a strong domestic manufacturing footprint and deep customer engagement, we are well-positioned to partner in Indias journey towards energy efficiency, net-zero goals, and industrial competitiveness. As we strengthen our presence across both core and emerging sectors, we continue to accelerate the countrys digital transformation and shape a smarter, greener energy future.

Global Economy

In 2024, the global economy expanded at a moderate pace of 3.3%, according to the IMF, reflecting a phase of relative stability despite continued constraints on growth. As 2025 progresses, the global environment is undergoing a period of significant transition, with countries reassessing their policy priorities in response to rising geopolitical tensions and deepening economic headwinds.

The United States has introduced a series of additional tariff measures, triggering swift and firm responses from major trading partners. This escalation has resulted in widespread tariff increases across major economies, driving effective tariff rates to historic highs and exerting considerable pressure on global GDP. The situation has been further complicated by the abrupt and unpredictable nature of these policy shifts, which has sharply increased economic uncertainty and destabilized the short-term outlook.

Amid these developments, global headline inflation is now expected to ease at a slower pace than earlier projected. The IMF forecasts a decline to 4.3% in 2025, followed by a further moderation to 3.6% in 2026. This revised outlook reflects upward adjustments in inflation estimates for advanced economies, partially balanced by marginal downward revisions for emerging markets and developing economies.

	GDP growth trend (in %)
			(in %)
	2024	2025	2026
Global Economy	3.3	2.8	3.0
Advanced Economies	1.8	1.4	1.5
Emerging Markets and Developing	4.3	3.7	3.9

Economies

(Source: World Economic Outlook, April 2025)

Outlook: From resilience to revival

Despite prevailing challenges, the current global environment offers a timely opportunity to strengthen economic resilience and lay the foundation for sustainable growth. The ability of several economies to adapt under pressure reinforces the notion that recovery is achievable through coordinated policies and well-calibrated reforms.

Advancing toward a more balanced and inclusive global recovery will require collective action, promoting transparent trade practices, resolving debt vulnerabilities, and addressing persistent structural imbalances. The IMF continues to highlight the need for sound macroeconomic and structural policies to gradually reduce excessive global imbalances and support long-term, sustainable growth.

Indian economy

India has emerged as a beacon of resilience and stability, marked by consistent GDP growth, easing inflation, and robust domestic demand, despite persistent headwinds from global markets. The countrys GDP grew by 6.5% in FY 2024–25, supported by strong performance across key sectors such as construction, trade, and financial services. This momentum reflects sustained consumption trends and strategic government spending.

Indias macroeconomic landscape in FY 2024–25 reflects a nuanced interplay of inflation control, fiscal prudence, and growth sustenance. Consumer price inflation eased to an eight-month low of 3.34% in March 2025, providing some relief on the price front. However, the uptick in core inflation to 4.1% highlighted persistent underlying pressures, underscoring the need for a calibrated monetary policy by the Reserve Bank of India to balance inflation expectations with growth imperatives.

On the fiscal front, the government maintained its commitment to consolidation, targeting a reduced fiscal deficit of 4.9% of GDP for FY 2024–25, compared to 5.6% in the previous year. Reinforcing its long-term growth agenda, the Union Budget for FY 2025–26 earmarked 11.21 lakh crore—around 3.1% of GDP—for capital expenditure, with a sharp focus on infrastructure development, employment creation, and high-multiplier investments in critical sectors.

Indias foreign exchange and trade dynamics displayed resilience amid global headwinds. The rupee depreciated by 2.8% in 2024, ending the year at 85.6150 per US dollar. Yet, it outperformed several Asian peers that saw sharper declines, thanks to proactive, two-way interventions by the central bank that helped contain volatility. Merchandise exports remained on a steady trajectory,

	GDP growth trend (in %)
				(in %)
FY 2020-21	FY 2021-22	FY 2022-23	FY 2023-24	FY 2024-25
(6.6)	8.7	7.0	7.2	6.5
Source: MoSPI

supported by robust global demand in key sectors such as engineering goods, pharmaceuticals, and electronics. On the import side, softening crude oil prices and enhanced domestic capacity under the Production-Linked Incentive (PLI) schemes helped moderate import volumes. These trends, along with new trade agreements and targeted export promotion measures, are expected to narrow the trade deficit and further reinforce Indias global competitiveness.

Amid these macro and external developments, Indias manufacturing sector sustained its growth momentum, though at a slightly moderated pace. The HSBC India Manufacturing PMI registered 56.4 in December 2024, a modest dip from 56.5 in November and a downward revision from the preliminary 57.4 estimate. This minor deceleration signals a cooling off after a year of strong momentum. Nonetheless, the indexs consistent reading above the 50-point threshold for over three years affirms the sectors resilience and its integral role in driving economic expansion despite evolving macroeconomic conditions.

Outlook

Indias economy is expected to maintain its growth momentum in FY 2025–26, supported by strong domestic consumption, higher public investment, and reform-focused governance. Growth remains broad-based, with services, manufacturing, and construction contributing significantly to overall expansion and reinforcing the economic foundation.

While global uncertainties, trade disruptions, and geopolitical tensions pose risks, Indias structural transformation continues to drive resilience. This is led by rapid digital adoption, a vibrant startup ecosystem, and targeted manufacturing support through Production-Linked Incentive schemes. A disciplined fiscal and monetary strategy, combined with gains in productivity and innovation, is strengthening competitiveness. However, continued policy responsiveness will be important to manage risks such as capital flow volatility and persistent inflation, ensuring sustained and inclusive development.

Union Budget 2025–26: Catalyzing Indias clean energy transition

The Union Budget 2025–26 strengthens Indias long-term vision of building a clean, secure, and self-reliant energy future. It sets a clear roadmap for accelerating renewable energy adoption, upgrading grid infrastructure, and enhancing domestic manufacturing capabilities.

Accelerating clean energy deployment

The Budget significantly boosts allocations for solar, wind, and hydro energy projects across diverse geographies. Tax incentives have been introduced to attract private investment into green ventures, while dedicated R&D grants aim to fast-track innovation in energy storage, hybrid systems, and smart grid technologies.

Modernising distribution & grid infrastructure

To support a more efficient and responsive power system, the Budget provides financial support to DISCOMs for reducing AT&C losses and improving service delivery. There is a strong emphasis on smart grids and AI-powered solutions to modernize the transmission network and enable real-time energy management.

Unlocking nuclear energy potential

Proposed legislative amendments aim to open up the nuclear energy sector to private participation, laying the foundation for scaling nuclear capacity to 100 GW by 2047. This move is expected to strengthen base-load capacity in a future-ready green grid.

Strengthening domestic capabilities & energy security

With an eye on reducing import dependency, the Budget expands production-linked incentive (PLI) schemes for solar PV modules, wind turbines, battery storage, and green hydrogen components. The focus is on building a globally competitive, self-sufficient clean energy manufacturing ecosystem.

Skilling Indias workforce

Recognizing the need for a future-ready talent pool, the Budget allocates resources for skill development and reskilling programs in renewable energy and advanced energy technologies. It promotes structured partnerships among academia, research institutions, and industry to nurture innovation and job-ready expertise.

Indian Power Sector

India is the third-largest producer and consumer of electricity globally, and in 2024–25, its power sector witnessed a transformative shift driven by structural reforms, rising energy demand, and a strong pivot toward clean energy. This transition extends beyond generation, it focuses on creating the infrastructure necessary for sustained economic growth, industrial competitiveness, and environmental stewardship. As of March 31, 2025, the total installed power generation capacity stood at 475.76 GW, with thermal sources contributing 172.37 GW. While thermal power continues to play a crucial role in meeting base-load demands, its relative share is gradually decreasing, driven by the rapid expansion of solar power, propelled by declining costs, technological advancements, and supportive policy frameworks.

The evolving energy mix signals a decisive yet measured transition toward a low-carbon and resilient future. Solar and wind continue to lead renewable capacity additions, while hydro, nuclear, and biomass play an important role in ensuring grid stability. Large-scale initiatives—such as ultra-mega solar parks, green energy corridors, and renewable hybrid zones—are accelerating the clean energy push, supported by increasing private sector participation and interest in emerging areas like green hydrogen. At the same time, challenges related to grid integration, energy storage infrastructure, and regulatory clearances remain significant hurdles to ensuring a stable and reliable renewable power ecosystem. Looking ahead, India aims to achieve a total installed power generation capacity of 777 GW by 2030, including 500 GW from clean energy sources and 277 GW from fossil fuels.

Growth drivers

As one of the fastest-growing economies in the world, Indias increasing energy needs are being met through both capacity augmentation and structural reforms.

Economic growth and urbanization: Indias robust economic growth and rapid urban expansion are significantly increasing electricity consumption. Urban households, commercial establishments, and industries are demanding more reliable and uninterrupted power, intensifying the need for consistent infrastructure development and distribution efficiency.

Industrial electrification and emerging sectors: The modernization and expansion of Indias industrial base have led to greater reliance on electricity, replacing traditional fuel-based systems with cleaner and more efficient energy use. Additionally, new-age sectors such as electric vehicles (EVs), data centers, and green hydrogen are emerging as high-growth demand centers, poised to drive substantial energy requirements in the coming decade.

Renewable energy transition: Indias ambitious clean energy targets bolstered by declining costs and improved technologies are propelling the transition to solar, wind, and hybrid power solutions. Strong policy backing, including viability gap funding, production-linked incentives (PLI), and streamlined regulatory approvals, has encouraged both public and private sector investments in renewables.

Policy reforms and infrastructure investment: Government-led reforms are playing a central role in shaping the sector. Programs such as the Revamped Distribution Sector Scheme (RDSS), green energy corridors, and privatization of discoms aim to modernize infrastructure, reduce AT&C losses, and bring transparency and competition. These steps are crucial for the sectors long-term sustainability.

Transmission, distribution, and smart grids: With the increasing share of variable renewable energy, strengthening transmission and distribution (T&D) infrastructure is vital. Investments in grid expansion, inter-regional connectivity, and smart grids are enhancing load balancing, improving system reliability, and ensuring real-time power management. Smart metering, automation, and AI-driven grid analytics are also helping reduce losses and optimize energy flow.

Indian Power Distribution and DISCOM reforms

Indias power distribution sector is undergoing a structural transformation, creating strong momentum for innovation, investment, and sustainable growth. With increasing policy focus, distribution companies are emerging as key enablers of the countrys energy transition. The digitalisation of the grid through smart meters, automation tools, and

AI-based monitoring is improving operational efficiency, enabling real-time insights, and supporting better consumer engagement. As renewable energy integration deepens, distribution companies have an opportunity to facilitate solar, wind, and hybrid systems, paving the way for new models such as energy trading, net metering, and decentralised generation.

The shift in consumption patterns, driven by the growth of electric vehicles and distributed energy systems, is opening up further possibilities for building EV charging infrastructure, managing grid loads, and offering tailored energy solutions. Reforms that promote open access, real-time energy markets, and competitive procurement are creating a more dynamic, consumer-oriented ecosystem. Financial support through schemes like the Revamped Distribution Sector Scheme is driving performance improvements, while public-private partnerships are bringing in professional practices and capital investment, especially in urban and industrial regions. With the convergence of technology, regulatory support, and sustainability imperatives, distribution companies are set to evolve into digitally enabled, financially stable, and customer-focused utilities, playing a central role in Indias energy future.

Indias clean energy transition

Indias energy transition has been bold and forward-looking, marked by ambitious targets, supportive policies, and strategic investments. With a clear roadmap toward sustainability, the country has positioned itself as a global leader in renewable energy. The Ministry of New and Renewable Energys goal of achieving 500 GW of non-fossil electricity capacity by 2030 reflects this commitment. In 2023–24 alone, India added 18.48 GW of renewable capacity, reinforcing its intent to build a cleaner energy future. Flagship programmes such as the National Green Hydrogen Mission, which targets 10 percent hydrogen blending in the gas pipeline network by 2030, highlight efforts toward deep decarbonisation, even as challenges around costs and infrastructure remain. Initiatives like the Green Energy Corridor are playing a vital role in strengthening grid infrastructure and enabling better renewable integration.

Technological advancements, particularly in energy storage, are becoming central to addressing intermittency issues. Complementary initiatives like the Perform Achieve and Trade (PAT) scheme and rising corporate net-zero targets are accelerating decarbonisation across sectors. Indias energy transition also extends beyond power generation, with efforts in electric mobility, clean cooking, and sustainable agriculture reflecting a broad-based, integrated approach. Looking ahead, India remains focused on scaling clean technologies, enhancing energy security, and achieving self-reliance. The continued push through rooftop solar, critical mineral exploration, and targeted incentives is helping shape a resilient and inclusive energy ecosystem that supports long-term growth and environmental responsibility.

Schneider Electrics role

We offer solutions that enhance grid performance and efficiency while supporting the integration of renewables into the national grid. Through EcoStruxure™ for Power and Grid, electric utilities can transition to greener power generation, develop smart grids, and deliver energy that is both profitable and affordable. This commitment to modernising and digitising existing infrastructure underscores our dedication to promoting sustainable development.

Indias Infrastructure sector

Indias growth story over the past decade has been anchored in bold and sustained investments in infrastructure. Recognising its role as a catalyst for economic expansion and inclusive development, the Government has launched transformative initiatives across transport, urban renewal, aviation, and rural services—driving faster execution, integrated planning, and measurable impact.

The PM Gati Shakti National Master Plan has revolutionised infrastructure coordination by bringing together 44 Central Ministries and 36 States/ UTs on a single digital platform. With over 1,600 data layers and 15 lakh crore worth of projects mapped, the approach has enabled synchronised execution across sectors. The National Highway network expanded at a record pace, reaching construction speeds of over 33 km/day by 2023–24. Nearly 19,000 km of key corridors under Bharatmala Pariyojana have been developed, significantly improving logistics efficiency and connectivity.

Urban transformation gained momentum through the Smart Cities Mission and Swachh Bharat Mission – Urban 2.0, leading to over 7,400 projects completed and remarkable progress in solid waste management. Housing for all saw meaningful outcomes under PMAY-Urban, with more than 88 lakh homes delivered, enhancing urban inclusion and dignity.

Railways—already among the most efficient and sustainable transport systems—are undergoing a historic overhaul. From doubling and gauge conversions to new lines and enhanced track capacity, the sector has seen rapid infrastructure upgrades. Special focus on the Northeastern region, particularly Assam, is helping bridge regional gaps through increased connectivity and targeted investments. Service expansion through new trains, route extensions, and increased frequencies has ensured broader access and last-mile reach.

Schneider Electrics role

We empower industries to enhance efficiency, reduce costs, and achieve their sustainability goals through comprehensive, integrated energy management solutions. Our IoT-enabled, plug-and-play platforms span buildings, data centres, infrastructure, and industrial operations—driving digital transformation, operational resilience, and innovation at scale.

Indias aviation sector is also in a phase of transformative growth. Supported by the UDAN scheme, air travel has reached smaller cities and remote regions, unlocking economic potential and deepening regional integration. With operational airports nearly doubling to 157 and significant investments in terminals, runways, and air traffic systems, the sector is poised to become a global hub. Public-private partnerships have brought in innovation, global standards, and efficiency across airport development and management.

Looking ahead, India is focused on deepening multimodal connectivity, embedding sustainability across infrastructure projects, and leveraging emerging technologies such as AI, IoT, and green energy. Strengthening rural–urban linkages, climate resilience, and last-mile delivery will remain key to ensuring equitable, future-ready growth for all.

Indian mining, metals and minerals (MMM) sector

Indias metals and mining sector is poised for a shift, driven by rising infrastructure demand, energy security imperatives, and the nations thrust toward self-reliance. With coal continuing to be a critical energy source, domestic production is being scaled up through policy reforms and streamlined block allocations to reduce import dependency and meet growing power sector requirements.

Steel demand is expected to rise steadily, supported by construction, transportation, and urban development projects. Zinc consumption is also set to double over the next decade, as galvanization and steel-related industries expand. Meanwhile, the aluminum sector is seeing robust growth in transportation, packaging, and real estate applications, underpinned by increasing bauxite availability.

However, the sector faces persistent challenges such as regulatory complexity, high taxation, and environmental compliance burdens. To unlock its full potential, the focus must shift toward enabling reforms, faster project approvals, and widespread adoption of sustainable mining practices. These shifts will be key to positioning India as a competitive global resource hub while ensuring long-term economic and ecological balance.

Financial overview

For the FY 2024-25, we recorded a robust 19.5% revenue growth, reaching 2,636.7 crore, driven by increasing demand for smart, energy-efficient solutions. Improved cost controls and operational efficiencies further strengthened our margins.

	Profit & Loss Summary		Amount Crore
	FY 2024-25	FY 2023-24	% Change
Revenues	2,636.7	2,206.7	19.5%
EBITDA	407.4	305.1	33.5%
% of Revenue	15.4%	13.8%
Profit After Tax	267.9	172.0	55.7%
% of Revenue	10.2%	7.8%

Rs

	Company Debt Profile		Amount Crore
	FY 2024-25	FY 2023-24	% Change
Long Term Debt	515.6	485.7	6.1%
Short Term Debt	6.0	5.2	15.4%
Gross Debt Level	521.6	490.9	6.2%
Debt-to-Equity Ratio	0.93	1.66

Rs

	Key Ratios		Amount Crore
	FY 2024-25	FY 2023-24	% Change
ROI	20.3%	18.6%	9.2%
ROCE	32.9%	34.5%	-4.6%
ROE	62.4%	76.9%	-18.8%

Outlook

The years ahead will define our ascent as the trusted leader in Electrification and Digitalization, delivering unmatched energy and operational efficiencies for our customers. We will accelerate the global energy transition by innovating across renewable generation, grid modernization, and energy storage, ensuring cleaner, more resilient power systems. At the same time, we will expand our digital transformation efforts—harnessing data analytics, artificial intelligence, and the Industrial Internet of Things to optimize processes, reduce downtime, and create new value streams.

Our investments in advanced analytics platforms and smart asset management will deepen customer engagement and drive measurable performance gains.

Building on our reputation as an Impact Company, we will strengthen our sustainability commitments across every facet of our operations and ecosystem. By collaborating closely with customers and suppliers, we will embed circular economy principles, reduce carbon footprints, and foster social prosperity in the communities we serve. We will champion diversity and inclusion, elevate women in leadership, and cultivate a culture of continuous learning that empowers every employee to contribute their best.

Above all, we believe in doing well to do good—achieving robust financial results while generating positive environmental and social outcomes. Through disciplined execution, breakthrough technologies, and purpose-driven partnerships, we will shape a future where business success and societal progress advance hand in hand.