Shivalic Power Control Ltd Management Discussions

For the Financial Year Ended March 31, 2026

(Pursuant to Regulation 34(2)(e) of SEBI (LODR) Regulations, 2015)

1. Industry Structure and Developments

The Indian electrical equipment and panel manufacturing industry continued to witness steady growth during FY 2025-26, supported by increasing investments in power transmission and distribution, infrastructure, manufacturing, renewable energy, data centres and industrial automation.

The growing emphasis on grid modernisation, energy efficiency, electrical safety and digitalisation is driving demand for advanced LT/HT panels, smart panels, APFC systems, VFD panels and customised power distribution solutions. Government initiatives focused on infrastructure development, domestic manufacturing and power-sector reforms have further supported industry growth.

The industry, however, continues to face challenges including fluctuation in copper, aluminium and steel prices, competitive pricing, extended project cycles and high working-capital requirements.

Going forward, the industry outlook remains positive, with opportunities arising from renewable energy, BESS, industrial expansion, infrastructure development and modernisation of power distribution networks. Companies with strong engineering capabilities, quality standards and customised product offerings are well positioned to benefit from these opportunities.

2. Business Overview

SHIVALIC POWER CONTROL LIMITED is engaged in the design, manufacture, and supply of customized electrical panels, including:

• Power Control Centers (PCCs)

• Motor Control Centers (MCCs)

• Distribution Boards (DBs)

• Automatic Power Factor Correction (APFC) Panels

• PLC and Automation Panels

• Bus Ducts and Turnkey Panel Solutions

We cater to a diverse range of industries, including real estate, manufacturing, hospitals and data centres, and have expanded our business into power generation, solar power projects and other EPC projects. Our operations are supported by in-house engineering, quality assurance and testing capabilities, enabling us to deliver reliable and customised solutions to our customers.

3. Financial Performance Overview

For the year ended March 31,2026:

• Revenue from Operations: Rs. 143 crores (Previous Year: Rs. 132 crore).

• Net Profit: Rs. 10.32 crores

The growth in revenue was driven by execution of orders from industrial and infrastructure clients, along with successful acquisition of new customers in southern and western India.

Profitability was impacted to some extent due to fluctuations in raw material costs and extended receivables cycles in government-linked projects.

4. Opportunities and Threats Opportunities:

• Government push for infrastructure, electrification, and power distribution upgrades

• Growing demand for automation and smart panels

• Renewable energy projects and electric vehicle infrastructure

• Potential in export markets due to competitive manufacturing Threats:

• Price pressure from unorganized players

• Raw material cost fluctuations (steel, copper, aluminium)

• Project delays and payment cycles in the public sector

• High dependency on a few large customers or EPC contractors

5. Outlook

The Company remains optimistic for FY2026-27. Key growth drivers include:

• Strengthening order book from commercial and industrial clients

• Strategic partnerships with automation OEMs and EPC players

• Focus on high-margin, value-added panels and automation solutions

• Exploring exports to neighbouring countries and the Middle East

The Company is investing in capacity expansion, certification (such as ISO/CE/IEC), and digitization to improve efficiency and competitiveness.

6. Risks and Concerns

• Working Capital Risk: Long receivables cycles can strain liquidity

• Technology Risk: Need to keep pace with changing automation and panel technology

• Supply Chain Risk: Dependence on suppliers for key raw materials

• Compliance Risk: Evolving electrical safety and regulatory norms

To mitigate these, the Company maintains prudent financial management, multi-vendor procurement, and strong internal controls.

7. Internal Control Systems and Their Adequacy

	As on 31st March 2026	As on 31st March 2025	% of variance	Reason for Variance (for more than 25% increase/(decrease))
Current Ratio	3.45	9.44	-63.45%	Decrease in ratio is due to Increase in short term loan and Trade Payables during the year by the company.
Debt-equity Ratio	0.22	0.05	373.22%	Increase in ratio is due to increase in short-term borrowing by the company.
Debt service coverage ratio	12.21	5.4	126.01%	Increase in ratio is due to lower loan repayment and interest liability
Return on equity Ratio	8.75%	16.12%	-45.73%	Decrease in ratio is due to increase in equity on account of Fresh issue of share capital in FY24-25 and decrease in Profit after tax in FY25-26
Inventory turnover ratio	1.69	2.25	-24.96%	Decrease in ratio is due to higher average inventory
Trade receivables turnover Ratio	3.77	4.19	-10.04%	Decrease in ratio is due to higher average receivable
Trade payables turnover ratio	13.94	14.34	-2.79%	Decrease in ratio is due to higher average payable
Net capital turnover ratio	1.45	2.12	-31.63%	Reduction in ratio is due to companies efforts to faster rotate the inventory and fasten the cash conversion cycle.
Net profit ratio	7.19%	9.38%	-23.39%
Return on capital employed	10.15%	15.71%	-35.38%	Reduction in ratio is due to to recent capital investments; returns from these projects are expected in upcoming years

The Company has adequate internal control systems in place, which are commensurate with its size and nature of operations. These controls ensure accurate financial reporting, safeguarding of assets, and compliance with laws and regulations.

8. Performance of the Company:

The Key Financial Parameters as on 31st March, 2026 are as follows:

Revenue from Operations: 14,365.93 Lacs.

8. Human Resources and Industrial Relations

As of March 31, 2026, the Company had 300 employees across departments including engineering, production, marketing, and administration.

During the year, the Company focused on upskilling of technical staff, worker safety, and retention of key personnel. Industrial relations remained cordial throughout the year.

9. Cautionary Statement

Statements in this report describing the Companys objectives, projections, estimates, and expectations may be forward-looking statements within the meaning of applicable laws and regulations. Actual performance may differ materially from those expressed or implied due to various economic and political conditions, market demand, raw material prices, and other factors beyond the Companys control.

	For and on behalf of Board Shivalic Power Control Limited
	Sd/-	Sd/-
Date: 05/09/2026	AMIT KANWAR JINDAL	SAPNA JINDAL
Place: Faridabad	Managing Director	Whole Time Director
	DIN: 00034633	DIN: 03269137