Shivalik Bimetal Controls Ltd Management Discussions

The global economy remained resilient in 2024, with Asia leading the momentum, despite trade disruptions and tight monetary policies tempering the recovery.

Global Overview

Global Economic Overview

The global economy in 2024 managed to hold its ground amid persistent challenges, recording a GDP expansion of 3.3%, slightly ahead of expectations. Growth in advanced economies remained restrained at 1.8%, weighed down by the cumulative effects of prolonged monetary tightening. In contrast, emerging markets and developing economies (EMDEs) maintained relatively stronger momentum, growing at 4.3%, primarily driven by sustained activity in Asia, particularly in India, with 6.5%, and China, with 5.0%.

Inflationary pressures showed signs of easing across geographies, though they remained elevated compared to pre-pandemic levels. Average inflation in advanced economies moderated to 2.8%, while emerging market and developing economies (EMDEs) experienced a broader, yet uneven , softening to 7.7%. This disinflationary trend provided central banks with room to recalibrate their policy stances, with many slowing or pausing rate hikes. However, real interest rates stayed high, continuing to dampen consumption and investment. The U.S. Federal Reserve kept its policy rate close to 5.5%, while the European Central Bank signalled early indications of a policy pivot in response to slower growth.

Regional conflicts and rising global uncertainty emerged as key downside risks, particularly in the Middle East and North Africa (MENA) region. Prolonged conflicts in Ukraine and across MENA showed limited signs of resolution, intensifying volatility in the global risk environment. Tensions in the Middle East raised concerns over potential disruptions in crude oil supply, which could have broader implications for global inflation and energy security. These geopolitical headwinds, along with intermittent supply chain disruptions—especially in energy and semiconductors—continued to weigh on the pace of recovery in industrial production.

World Economic Outlook Growth Projections

		PROJECTIONS
(Real GDP, annual percent change)	2024	2025	2026
World Output	3.3	2.8	3.0
Advanced Economies	1.8	1.4	1.5
United States	2.8	1.8	1.7
Euro Area	0.9	0.8	1.2
Germany	-0.2	0.0	0.9
France	1.1	0.6	1.0
Italy	0.7	0.4	0.8
Spain	3.2	2.5	1.8
Japan	0.1	0.6	0.6
United Kingdom	1.1	1.1	1.4
Canada	1.5	1.4	1.6
Other Advanced Economies	2.2	1.8	2.0

With rising protectionism and geopolitical tensions, global trade is expected to contract in 2025 thefirstdecline since the onset of the pandemic.

Investor confidence remained fragile throughout the year, with global equity markets witnessing sharp fluctuations. The combination of geopolitical volatility, uncertain interest rate trajectories, and sluggish consumer sentiment led to selective capital deployment. While investments in renewable energy, infrastructure, and digital transformation gained momentum, industrial and discretionary capital expenditures (capex) remained largely subdued.

Monetary policy paths diverged in 2024–25, with advanced economies essentially maintaining tight stances to curb inflation, while several emerging market and developing economies (EMDEs)—such as Brazil and parts of Southeast Asia—cautiously eased rates to stimulate domestic demand. This divergence placed downward pressure on EMDE currencies, thereby elevating import-driven inflation risks.

Against this backdrop, the IMF has recommended that policymakers prioritise restoring price stability while supporting medium-term growth. Emphasis has been placed on safeguarding financial stability, rebuilding fiscal buffers, and advancing structural reforms to strengthen resilience amid heightened global uncertainty.

Looking ahead, the International Monetary Fund (IMF) projects global growth to decelerate slightly to 2.8% in 2025. The risks to this outlook remain skewed to the downside, with geopolitical flashpoints, interest rate uncertainty, and weak trade volumes all posing potential headwinds. The structural reshaping of global trade, through onshoring, regionalisation, and supply chain diversification, is expected to keep trade elasticity below historical levels for the foreseeable future.

GLOBAL TRADE PROSPECTS

One of the more significant factors shaping the 2025 trade outlook is the realignment of global supply chains. The growing trend of nearshoring and friendshoring—driven by geopolitical frictions, particularly between the U.S. and China—has started to influence the structure and elasticity of trade. Trade fragmentation and the localisation of manufacturing capacities are beginning to dampen the historical responsiveness of trade to global GDP, lowering trade multipliers.

The outlook for global trade in 2025 is marked by continued uncertainty and a cautious tone. Following a sharp slowdown in 2023 and a weaker-than-expected recovery in 2024, the World Trade Organisation (WTO) projects a decline of 0.2% in the volume of world merchandise trade in 2025, a downgrade from the earlier estimate of 2.7%. This tepid projection reflects a fragile global macroeconomic environment and persistent structural shifts in trade dynamics.

Downside risks to the forecast remain significant. Escalating geopolitical conflicts, tighter financial conditions, renewed supply chain bottlenecks, and climate-related disruptions could further derail trade recovery. Moreover, increased use of industrial policy, export controls, and retaliatory tariffs could pose systemic challenges to open trade.

The global trade environment in 2025 remains fragile, as escalating geopolitical tensions and policy uncertainty continue to exert downward pressure on trade volumes and investor sentiment. The World Bank has revised its global growth forecast to 2.3%, citing the rise of trade barriers and a decline in confidence across major economies.

One of the most immediate threats to trade stability stems from heightened tensions in the Middle East. Currently, hostilities between Israel and Iran have intensified, with both nations targeting each others critical energy infrastructure. Israels reported strikes on Iranian gas processing and fuel facilities, followed by Irans retaliatory attacks on pipelines linked to Israeli refineries, led to a sharp increase in global oil prices.

Such developments not only drive up energy costs but also risk disrupting the flow of commodities, thereby compounding existing challenges in global merchandise trade. As trade fragmentation, elevated logistics costs, and strategic resource realignments persist, the global outlook for trade remains cautious and vulnerable to further geopolitical shocks.

GLOBAL ENERGY OUTLOOK

The global energy system is undergoing a pivotal shift, driven by increasing electricity consumption and a decisive shift toward cleaner sources of power. In 2024, global energy demand increased by 2.2%—significantly above the decade-long average—driven primarily by rapid growth in electricity consumption. This uptick, estimated at 4.3%, was fuelled by expanding industrial output, the electrification of transportation, increased demand for cooling, and the proliferation of energy-intensive technologies such as data centres and artificial intelligence

Renewables are now firmly at the centre of this evolution. In 2024, nearly 40% of the additional energy supply came from renewable sources, surpassing contributions from natural gas (28%), coal (15%), oil (11%), and nuclear (8%). This momentum is expected to accelerate in the years ahead. The International Energy Agency (IEA) anticipates that renewable, nuclear, and hydroelectric sources could collectively generate up to 90% of the worlds electricity by 2050.

The World Energy Outlook 2024 underscored this dramatic transition,infrastructure. noting that over 560 GW of clean energy capacity was added in 2023 alone. Annual global investment in clean energy has now approached US$2 trillion, more than double the capital directed toward fossil fuel supply projects.

According to McKinseys Global Energy Perspective 2024, global primary energy consumption is projected to increase between 11% and 18% by 2050, with most of the growth concentrated in Asias emerging markets—particularly India, Southeast Asia, and the Middle East. In a scenario aligned with the 1.5?C climate target, renewables could provide up to 80% of global electricity needs by mid-century. At the same time, fossil fuel consumption is expected to reach its peak around 2030.

These trends are ushering in a new phase, often referred to as the "Age of Electricity"—a period where electricity becomes the primary energy carrier across various sectors, including mobility, manufacturing, residential heating, and digital ecosystems. With sustained investment in smart grids, energy-efficient and low-carbon technologies, the global energy transformation is well underway, reshaping both consumption patterns and long-term infrastructure priorities.

Domestic Overview

Indias Economic Performance and Outlook

India maintained its lead as the fastest-growing major economy in FY2024–25, underpinned by robust domestic fundamentals and supportive fiscal and monetary policies. According to data from the Ministry of Statistics and Programme Implementation (MoSPI), real GDP expanded by 6.5%, while nominal GDP advanced by 9.8%, reflecting robust price-adjusted growth alongside strong value creation. Substantial public infrastructure spending, stable consumption patterns, and a notable rebound in manufacturing activity fuelled the economy.

Among the key sectors driving growth, construction recorded a healthy expansion of 9.4%, reflecting momentum in infrastructure and housing. Public Administration, Defence, and Other Services followed with an 8.9% growth rate, while Financial, Real Estate, and

Professional Services posted a 7.2% increase, indicating broad-based resilience in the service sector.

Price pressures eased markedly over the year. Average Consumer Price Index (CPI) inflation declined to 4.5%, comfortably within the Reserve Bank of Indias (RBI) tolerance band.

By May 2025, headline inflation had softened to 2.8%, the lowest in over six years, aided by falling food prices, smoother supply chains, and a favourable base effect. In response to this disinflationary trend, the RBI reduced the repo rate by 50 basis points in June 2025, bringing it down to 5.50%. This followed an earlier 50-basis-point cut, marking a total policy easing of 100 basis points and a shift from a hawkish to a neutral policy stance aimed at supporting growth while maintaining macroeconomic discipline.

Industrial growth showed signs of moderation during the year. The Index of Industrial Production (IIP) rose by 4.0% in FY2024–25, a deceleration from 5.9% the previous year, mainly reflecting subdued momentum in the mining segment. However, in March 2025, the IIP showed resilience with 3.0% growth, supported by a 6.3% rise in electricity output and stable manufacturing activity.

Indias manufacturing sector continued to display expansionary strength. The HSBC/S&P India Manufacturing PMI averaged 56.8 for the calendar year 2024, remaining firmly above the 50-mark threshold. Although the index eased to 57.6 in

May 2025, signalling some moderation in input costs and demand, overall sentiment remained positive.

The World Bank projects that India will sustain a growth rate of more than 6% in the coming years. Despite recent downward revisions to its growth outlook, India is still expected to grow at 6.3% in 2024 and 6.5% in 2025, continuing to outpace the growth of advanced economies.

IMPORTS AND EXPORTS FROM INDIA

Indias external trade performance in FY 2024–25 reflected resilience and diversification amid a complex global landscape. According to the Ministry of Commerce and Industry, total exports (including merchandise and services) reached USD 820.93 billion, marking a 5.5% increase over the previous fiscal years USD 778.13 billion. This growth was driven by a strong showing in the services sector, coupled with robust non-petroleum merchandise exports.

Merchandise exports rose marginally by 0.08% to USD 437.42 billion, up from USD 437.07 billion in FY 2023–24. Within merchandise exports, non-petroleum shipments performed significantly better, recording a 6.0% year-on-year growth to USD 374.08 billion, indicating broad-based export expansion beyond traditional energy-related goods. Electronic goods emerged as a standout performer, registering a 32.5% increase to USD 38.6 billion, up from USD 29.1 billion in the prior year. Agricultural exports, including coffee (up 40.4%), tobacco (up 36.5%), and rice (up 19.7%), also posted strong growth, highlighting Indias increasing share in global food and commodity markets.

Services exports remained a significant growth engine, increasing by 12.5% to reach USD 383.51 billion, up from USD 341.06 billion the previous year. This surge was supported by continued demand for software services, consultancy, business process management, and emerging areas like fintech and cloud solutions.

On the import side, India recorded total imports of USD 915.19 billion, up 6.9% from USD 856.52 billion in FY 2023–24. Merchandise imports rose 6.2% to USD 720.24 billion, while non-petroleum, non-gems & jewellery imports increased by 6.8% to USD 453.62 billion, indicating sustained demand for industrial inputs and capital goods. Service imports rose by 9.4% to USD 194.95 billion.

Consequently, the overall trade deficit widened to USD 94.26 billion, compared to USD 78.39 billion in the previous fiscal. While the deficit increased, the composition of trade reflects Indias transition toward higher-value-added exports and an expanding footprint in critical sectors, such as electronics and professional services.

Indias trade profile for FY 2024 25 underscores the economys ability to navigate external headwinds while deepening its integration into global value chains. The encouraging trends in non-petroleum exports and service sector performance reaffirm Indias potential to sustain export-led growth in the medium term.

INDIAS ENERGY OUTLOOK

Indias energy ecosystem is undergoing a significant transformation, driven by surging energy consumption needs, a strategic shift toward sustainable power sources, and the imperative to reduce reliance on imports. As per the Energy Statistics India 2025 report released by the Ministry of Statistics and Programme Implementation (MoSPI), total domestic energy output rose to 21,452 petajoules (PJ) in FY2023–24, registering a growth of 9.73% over the previous year, reflecting both capacity expansion and improved resource utilisation.

Despite the acceleration in renewables, the countrys energy portfolio remains predominantly fossil fuel-based. In FY2022–23, coal accounted for 56% of total energy output, with crude oil and natural gas contributing 29%, while renewables and hydroelectricity accounted for 13% and 2%, respectively. Although coal remains the primary fuel for power generation, its relative share has started to decline gradually as India scales up its green energy infrastructure.

Electricity generation trends mirror this broader energy shift. India generated 1,884.3 terawatt-hours (TWh) of electricity in FY2022–23, with thermal sources—primarily coal—contributing 1,563 TWh, or 83% of the total electricity generated. Notably, the power sector was responsible for consuming 79.3% of the countrys coal supply. Non-fossil generation—led by solar and wind—continues to gain ground, underlining the increasing significance of clean technologies in the national grid.

In terms of energy usage, the industrial sector remained the most significant consumer, accounting for 37% of total final energy consumption, followed by the transport sector (24%), residential households (20%), and agriculture (4.5%). These figures highlight the pressures of rapid urbanisation, industrialisation, and rising living standards.

Indias long-term energy blueprint is aligned with its broader climate commitments, including the goal of achieving net-zero emissions by 2070 and establishing 500 GW of non-fossil power capacity by 2030. Looking ahead to 2047, the energy mix is expected to undergo a substantial transformation, with renewables projected to contribute over 65% of total power generation. Solar, wind, green hydrogen, and biofuels will be key enablers of this transition.

With rural electrification already exceeding 99%, the government is now focused on modernising grids, expanding electric vehicle (EV) infrastructure, and enhancing energy efficiency across sectors. As electricity consumption per capita remains below global benchmarks, sustained demand growth is anticipated, necessitating continued investment in both generation and transmission.

This backdrop opens significant opportunities for domestic electrical and energy technology firms.

Companies like HPL Electric, which operate at the intersection of power distribution, metering, and innovative infrastructure, are well-positioned to contribute to and benefit from Indias shift toward a cleaner, more resilient energy future.

Industry Outlook

Shivalik Bimetal Controls Limiteds products serve as essential building blocks in a wide range of electronic and electrical systems. From Shunt Resistors used in electric vehicles, energy storage, smart meters, and power modules, to Thermostatic Bimetals embedded in switchgear, medical devices, and electrical appliances, and Electrical Contacts integral to switching mechanisms and wires & accessories—the Companys offerings are critical to both legacy and next-generation applications.

The Company plays a pivotal role in enabling precision, reliability, and safety across various sectors, including automotive, industrial automation, smart energy, and electronics. Its commitment to specialised joining technologies and material innovation reinforces its strategic importance to OEMs operating in high-growth segments, such as electric vehicles (EVs), battery management systems, and smart metering infrastructure.

As global demand accelerates for efficient, compact, and high-performance components, Shivalik is well-positioned to support the transformation of traditional systems into intelligent, energy-optimised solutions.

ELECTRICAL EQUIPMENT MARKET

The global electrical equipment market remains a fundamental pillar of modern infrastructure, enabling the distribution of power across residential, industrial, commercial, and utility segments. According to Fortune Business Insights, the market reached a valuation of US$1.85 trillion in 2024, with projections indicating a rise to US$1.92 trillion in 2025, reflecting a healthy 4.2% year-over-year growth. Segment-wise, the market is witnessing strong demand in categories such as transmission and control equipment, wires and cables, and lighting systems, each supporting a broad spectrum of applications across critical sectors.

The Asia-Pacific region emerged as the most significant contributor in 2024, accounting for roughly 22% of global revenue, followed closely by North America and Europe. The regions leadership is underpinned by expansive infrastructure development and industrial electrification in key economies such as India, China, and Southeast Asia.

Domestically, Indias electrical equipment industry is experiencing strong momentum, propelled by rapid urbanisation, expanding infrastructure, and a surge in residential and commercial construction activity. The sector is further benefiting from policy support and growing participation in cross-border electricity trade, which is unlocking new avenues for domestic manufacturers.

Despite this positive trajectory, the industry faces a range of structural challenges. These include navigating an evolving regulatory landscape, managing cybersecurity risks associated with the digitalisation of power infrastructure, and addressing the urgent need to modernise the countrys ageing grid and metering systems. To maintain competitiveness, industry players must focus on innovation, build supply chain resilience, adopt cybersecurity frameworks, and ensure alignment with evolving compliance norms.

Indias electrical and electronics market is expected to nearly double from over US$60 billion in FY 2022 23 to US$130 billion by 2030 driven by domestic demand and a surge in exports.

The sectors outlook remains highly promising. Indias electrical and electronics market is projected to nearly double from over USD 60 billion in FY2022–23 to USD 130 billion by 2030, reflecting a strong compound annual growth rate (CAGR) of over 8%. This growth is underpinned by robust domestic demand and a sharp uptick in exports. In FY2022–23 alone, the sector recorded USD 11 billion in exports, with a 17% CAGR (INR terms) over the last

According to IEEMA, Indias apex industry body, the export capacity is expected to scale up by 2.5 times by 2030, as manufacturers tap into the rising global demand for high-quality, cost-competitive electrical equipment.

SMART METERING

Smart electricity meters with AMI functionality are the dominant choice, offering two-way communication, remote monitoring, and dynamic pricing capabilities. The residential sector remains the largest end-use segment, driven by increasing interest in energy efficiency and smart home integration. As digitalisation accelerates, the smart meter market presents strong growth opportunities globally, positioning companies like Shivalik to expand their role in smart energy ecosystems.

The global smart meters market is a key enabler of energy modernisation, supporting utilities in improving billing accuracy, grid resilience, and consumer engagement. According to the IMARC Group, the market reached US$26.7 billion in 2024 and is projected to grow to US$50.3 billion by 2033, registering a compound annual growth rate (CAGR) of 7.24% from 2025 to 2033. The Asia-Pacific region led with a 44.6% market share in 2024, driven by large-scale AMI deployments across China, India, and Southeast Asia. Government mandates, smart grid investments, and the adoption of the Internet of Things (IoT) continue to fuel demand.

Indias push toward a modern, data-driven power grid has positionedyears. smart metering at the core of its power sector reforms. Through flagship initiatives such as the Smart Meter National Programme (SMNP) and the Revamped Distribution Sector Scheme (RDSS), the government aims to deploy 250 million smart meters by FY2027 28 a move that is set to unlock a USD 20 billion market across manufacturing, integration, analytics, and services.

As of May 2025, over 223 million meters have been sanctioned, with 30.6 million installed. Leading states include Uttar Pradesh, Bihar, Rajasthan, and Assam, while MSEDCL had announced a significant rollout worth 6,200 crore. These smart meters reduce AT&C losses, automate billing, enable time-of-day pricing, and enhance real-time grid visibility, making them essential to Indias smart grid evolution.

Backed by 97,631 crore in RDSS funding, this transformation presents a significant multi-year growth opportunity for component suppliers like Shivalik, whose precision-engineered shunt resistors play a critical role in smart metering applications. According to the IMARC Group, Indias smart meter market is projected to grow from USD 288.3 million in 2024 to USD 1.014 billion by 2033, at a compound annual growth rate (CAGR) of 15%.

Automobile industry

The global automotive industry entered 2025 amid a complex macroeconomic and policy environment. Following a tentative post-pandemic recovery, the sector now faces fresh headwinds from geopolitical disruptions, escalating trade barriers, and changing consumer preferences. According to S&P Global Mobility, global new vehicle sales are projected to rise by 1.7% YoY to 89.6 million units in 2025. China remains the industrys anchor, with sales expected to reach 26.6 million units, representing a 3.0% increase, driven by continued incentives for New Energy Vehicles (NEVs) and competitive pricing.

In contrast, the United States is expected to register 16.2 million units, a 1.2% increase, amid rising concerns about affordability and regulatory uncertainty. Europes market is expected to remain flat at 15.0 million units, weighed down by recessionary pressures and declining electric vehicle (EV) subsidies. Japan shows signs of rebound, with sales projected to grow 5.4% to 4.6 million units, following a challenging year marred by emissions-related disruptions. However, the imposition of new U.S. tariffs on imported vehicles and components has introduced fresh risks, prompting Fitch Ratings to downgrade the sector outlook from ‘neutral to ‘deteriorating. These tariffs are expected to increase global vehicle prices, disrupt supply chains, and erode profit margins for original equipment manufacturers (OEMs) and Tier-1 suppliers with U.S. exposure.

Despite near-term volatility, electrification remains a structural global trend. Electric vehicles are forecast to account for 16.7% of global light vehicle sales in 2025. China leads this transition with NEV penetration projected to rise from 49% in 2024 to 58% in 2025, while the U.S. and Europe remain on slower adoption paths, with market shares of just 8% and 13%, respectively. While concerns around affordability, infrastructure, and subsidy rollbacks persist, automakers are recalibrating their strategies, with many accelerating investments in cleaner technologies and shifting production closer to key consumption markets.

Domestically, the Indian automotive industry remains a key player in the global mobility ecosystem. As of FY2025, the sector contributes 7.1% to Indias GDP and 49% to manufacturing GDP, making it the largest manufacturing sector in the country. India ranks third globally in passenger vehicle volumes and second in two-wheeler production, bolstered by a strong component base and favourable policies such as PLI and FAME II.

According to SIAM, total vehicle production in FY2024–25 rose to 3.10 crore units, up 9% YoY. The two-wheeler segment drove this performance, growing by 11% to 2.39 crore units, followed by passenger vehicles (up to 50.6 lakh units) and three-wheelers (up 5.4% to 10.5 lakh units). The utility vehicle segment now represents nearly 65% of PV sales, reflecting evolving consumer preferences for advanced, feature-rich models. However, commercial vehicles witnessed a marginal 1.2% decline, due to financing constraints and cyclical slowdowns, although Q4FY25 showed signs of recovery.

Indias EV ecosystem is gaining momentum, even as global EV adoption slows, especially in the U.S. and Europe. According to FADA, EV penetration in India reached 7.8% in FY2025, up from 7.1% the previous year. While this progress is steady, it falls short of the pace needed to meet the governments 30% EV penetration goal by 2030. As per S&P Global, India must double its current annual growth rate in EV penetration to reach this target.

The country recorded over 2 million electric vehicle (EV) sales in FY2025, with cumulative registrations exceeding 6.17 million. The e-three-wheeler segment performed strongly, capturing 36% market share and growing 11% YoY. Players like Mahindra, Bajaj Auto, and YC Electric led the market. In passenger EVs, Tata Motors dominated with a 53% share, followed by MG Motor at 28%. EV car sales increased by 11%, while electric bus sales declined by 3% due to delays in procurement and production.

Regionally, Uttar Pradesh, Maharashtra, Karnataka, Tamil Nadu, and Bihar accounted for nearly 50% of EV registrations, signalling broad-based adoption. Schemes like FAME II, supportive state policies, and infrastructure investments are catalysing Indias

Yet, to achieve scale, the industry must address affordability, expand charging infrastructure, and boost consumer confidence through reliable after-sales service and financing support.

SWITCHGEAR MARKET

The global switchgear market, essential for the safe distribution and control of electricity, is undergoing a transformation fuelled by rising power demand, infrastructure upgrades, and grid modernisation. According to IMARC, the market was valued at US$116.9 billion in 2024 and is projected to reach US$172.3 billion by 2033, registering a compound annual growth rate (CAGR) of 4.4%. Growth is being driven by industrial electrification, renewable energy integration, and the increasing need for reliable systems in data centres, utilities, and manufacturing. Technological innovations—such as gas-insulated switchgear (GIS), modular designs, and IoT-enabled diagnostics—are transforming product offerings to enhance safety, efficiency, and lifecycle monitoring.

Domestically, Indias switchgear market is also experiencing strong growth. Valued at USD 10.7 billion in 2024, it is expected to expand to USD 18.9 billion by 2033, at a 5.9% CAGR, according to IMARC Group. Demand is being driven by urbanisation, industrial growth, rural electrification, and government programs such as the Smart Cities Mission and RDSS. While low-voltage switchgear dominates in residential and commercial segments, medium- and high-voltage categories are gaining traction from utilities and infrastructure projects. The component sub-segment alone efforts. is forecast to grow from USD 2.23 billion to USD 3.75 billion by 2033, underscoring the robust opportunities in Indias evolving power ecosystem.

Business Overview

About Company

Founded in 1984 and headquartered in New Delhi, Shivalik Bimetal Controls Limited. (SBCL) has evolved into a global precision engineering company, specialising in material joining technologies such as diffusion bonding, Cladding, and Electron Beam Welding. Over the years, Shivalik has solidified its position as a trusted supplier of thermostatic bimetal/ trimetal strips, clad metals, and high-performance electron beam-welded materials, serving diverse applications across the electrical, automotive, industrial, defence, and medical sectors.

At the heart of Shivaliks product innovation are Current Sense Metal Strip Shunts and SMD Resistors, which are integral to fast-evolving segments such as battery management systems, electric vehicles, smart metering, and industrial automation. These solutions are engineered with precision and tailored to the specific needs of OEMs, creating high entry barriers and offering long-term business stickiness.

In September 2024, Shivalik underwent a strategic management transition, ushering in a new leadership team committed to building upon the strong foundation laid by the founding promoters. The Boards decision to reconfigure leadership signals a proactive approach to scaling the business, deepening innovation, and driving operational excellence in line with global best practices. While continuing to honour its legacy of quality and customer trust, the Company is now positioning itself for accelerated growth, strategic diversification, and greater global market reach under the new managements vision.

Today, Shivalik operates from three manufacturing units in Chambhaghat and Kather (Solan, Himachal Pradesh), with a workforce of over 835 professionals. These facilities are designed for high-precision manufacturing and flexible production capabilities, enabling the Company to support a global customer base of over 275 clients.

With deep technical expertise, proprietary processes, and a longstanding reputation for quality, reliability, and customer-centricity, Shivalik is well-equipped to pursue new opportunities in emerging technologies and advanced electronics. The Company remains committed to expanding its innovation pipeline, enhancing value for all stakeholders, and continuing its journey as a leader in bimetal and resistor solutions.

FINANCIAL PERFORMANCE

		( in Crore)
Particulars	FY25	FY24
Revenue From Operation	508.35	508.93
COGS	289.3	282.82
Gross Profit	219.05	226.11
Gross Margin %	43.09%	44.43%
Employee Expenses	49.67	42.74
Other Expenses	65.94	77.26
EBIDTA	103.44	106.11
EBIDTA Margin %	20.35%	20.85%
Finance Cost	3.75	4.93
Depreciation	11.77	12.05
Other Income	14.57	22.43
Profit Before Tax	102.49	111.55
Profit Before Tax Margin	20.16%	21.92%
Taxes	25.66	27.49
Profit after Tax*	76.83	84.06
PAT Margin %	15.11%	16.52%

STABLE REVENUE AND RESILIENT MARGINS

Shivalik Bimetal Controls Limited. demonstrated remarkable resilience in FY2024–25, maintaining stable operational performance despite global macroeconomic uncertainties, supply chain volatilities, and elevated input costs. While the year witnessed modest pressure on margins and bottom-line metrics, our strong fundamentals, product diversification, and balanced domestic and export revenue mix enabled the Company to navigate these challenges effectively.

Revenue from operations remained broadly steady at 508.35 crore, compared to 508.93 crore in the previous fiscal, reflecting our ability to sustain volumes and customer engagement across key verticals.

Our diversified thermostatic bimetals, shunt resistors, and electron-beam-welded r materials continuestofind demand across automotive, industrial, and electronic segments.

Gross profit stood at 219.05 crore, with the gross margin holding at 43.09%, only marginally lower by 134 basis points from FY24. This outcome, despite a 2.29% increase in cost of goods sold (COGS), demonstrates the underlying strength of our pricing discipline, product mix strategy, and manufacturing efficiency.

While EBITDA declined slightly by 2.51% to 103.44 crore, the EBITDA margin remained stable at 20.35%, down just 50 basis points year-on-year. This minor contraction resulted from higher employee expenses ( up 16.21%) due to workforce expansions and inflation-linked adjustments, which were partially offset by a 14.66% reduction in other costs.

The Companys profit before tax (PBT) declined by 8.12% to 102.49 crore, and profit after tax (PAT) stood at 76.83 crore, reflecting an 8.60% decrease from the previous year. The moderation in profits was primarily due to lower other income, as well as a strategic increase in R&D and operational investments to support long-term growth.

Importantly, our financial position remains robust, with finance costs reduced by 23.93% and depreciation kept under control, reflecting disciplined capital allocation and a continued focus on efficiency. Our ability to maintain healthy margins under testing conditions reaffirms the resilience of our operating model.

Looking ahead, with a strong foundation, robust order book, and continued demand for our products across both domestic and international markets, we remain confident in our ability to regain growth momentum. Our diversified product and application portfolio, alongside prudent financial management and technology leadership, positions us well to capitalise on emerging opportunities in smart metering, electric vehicles (EVs), industrial electronics, and energy-efficient systems.

STRONG BALANCE SHEET AND FINANCIAL POSITION

Shivalik Bimetal Controls Limited. closed its fiscal year 2024 25 with a significantly strengthened balance sheet, underpinned by prudent financial management and sustained internal accruals. The Companys net worth increased by 64 crore, rising from 342 crore in FY24 to 406 crore in FY25, reflecting enhanced retained earnings and continued creation of shareholder value.

The Company is now in a net debt-free position, having reduced long-term borrowings from 12 crore to 4 crore, and maintained short-term borrowings at 29 crore. Importantly, cash and cash equivalents nearly doubled to 79 crore, signifying strong internal liquidity and robust operational cash flow.

Total current assets rose to 329 crore. In comparison, current liabilities remained steady at 82 crore, resulting in a current ratio of 4.01x—a clear indication of excellent short-term solvency and working capital health.

Growth in tangible fixed assets from 125 crore to 153 crore also signals continued investment in capacity and technology.

This strong financial foundation enables Shivalik to pursue growth opportunities with confidence, enhance customer engagement, and invest in strategic initiatives without compromising balance sheet integrity. The combination of rising net worth, low leverage, and ample liquidity underscores the Companys long-term financial resilience and operational agility.

In FY2024–25, Shivalik Bimetal Controls Limited. recorded a balanced segmental performance, reflecting the strength of its diversified product portfolio and global reach. Shunt

Resistors contributed 212.38 crore in revenue, with robust growth in India (up 31.31%) and Asia (up 22.69%), offsetting a decline in the Americas (down 23.24%). The segment remains a key growth driver, accounting for 42% of consolidated sales, supported by rising demand for electric vehicles (EVs), smart meters, and industrial automation.

Thermostatic Bimetals/Trimetals, the largest segment by revenue at 224.83 crore, saw mixed performance. While sales in the Americas grew modestly (up 4.48%), they declined in Europe (down 17.42%) and Asia (down 23.41%), reflecting subdued demand for exports. Domestic revenue also fell (down 7.31%), primarily due to the rationalisation of OEM inventory.

Electrical Contacts contributed 71.33 crore, reinforcing theCompanys positioning in switchgear and precision electromechanical assemblies. Together, these segments highlight Shivaliks broad application base and geographic resilience, positioning the Company to capitalise on the expected recovery in industrial and export markets.

Risk and Mitigation

Economic Slowdown

An economic slowdown in key markets such as the US and EU could dampen demand for Shivaliks products, impacting revenue and growth prospects. Shivalik is diversifying its market presence to address this risk, targeting regions with stable or growing demand. The Company is also expanding its product portfolio to cater to a broader range of industries, reducing its dependency on any single market or sector.

Geopolitical Tensions

Rising geopolitical tensions can lead to supply disruptions, especially critical raw materials like nickel and copper, which directly affect Shivaliks production capabilities and cost structures. We closely monitor geopolitical developments to mitigate this risk and adjust its procurement strategies accordingly. The Company is also increasing its inventory buffers for critical materials to cushion short-term disruptions.

Supply Chain Disruptions

The global nature of Shivaliks supply chain exposes it to risks of disruptions, which could arise from geopolitical tensions, logistic challenges, or supplier issues, potentially impacting production and delivery timelines. We are strengthening our supply chain resilience by diversifying our supplier base and developing contingency plans. Investments in supply chain technology and partnerships with reliable logistics providers aim to ensure smooth operations and timely fulfilment of customer orders.

Volatility in Raw Material Prices and Forex Rates

Shivaliks operations are susceptible to fluctuations in the prices of essential metals like nickel and copper, which form a significant part of its production costs. Moreover, the Company is exposed to foreign exchange rate fluctuations risks, which can impact its international transactions and profitability. To counteract these risks, we are broadening our supplier network and exploring alternative sourcing strategies to ensure stability in raw material supplies. The

Company is also employing forex hedging strategies to minimise the financial impact of currency volatility, providing more predictable and stable operational costs.

Working Capital Intensity

To be effective in the marketplace, Shivaliks business requires maintaining substantial inventory and receivables, leading to high working capital needs. This could potentially strain the Companys liquidity and financial flexibility. We implement advanced inventory management techniques to optimise stock levels and reduce carrying costs. Enhanced receivables management practices are also in place to expedite collections and improve cash flows, thus maintaining a healthy working capital cycle.

Inflationary Pressures

Inflation could erode purchasing power and increase operational costs, potentially affecting demand for Shivaliks products and compressing profit margins. Shivalik actively manages costs through operational efficiencies and strategic procurement to offset inflationary pressures. The Companys focus on product innovation and value addition also helps maintain demand and pricing power in the market.

Strategic, Transformation, and Innovation Risk

As Shivalik continues to innovate and transform its product offerings, there is a risk associated with the successful integration of new technologies and market acceptance of new products. To mitigate this risk, Shivalik invests in continuous research and development and closely monitors market trends to ensure its innovations align with customer needs and industry standards.

ESG Risk

Environmental, social, and governance (ESG) factors are increasingly important in the operational and reputational risk landscape. Shivalik is committed to enhancing its ESG compliance by adopting sustainable practices, improving social responsibility, and ensuring robust governance structures. A significant part of these sustainable practices includes sourcing most of the companys procured power from renewable sources, mainly hydroelectric, thereby maintaining a high level of environmental sustainability. This commitment not only minimizes our environmental footprint but also strengthens our market position as a leader in sustainability. The company regularly reviews its ESG strategies to align with global standards and stakeholder expectations, reducing potential risks related to environmental impact, social responsibility, and corporate governance.

INTERNAL FINANCIAL CONTROL

Shivalik Bimetal Controls Limited. maintains a comprehensive financial control framework designed to safeguard the integrity of its financial systems, enhance operational efficiency, protect assets, ensure adherence to regulations, and provide accurate financial data. The Company has established clear, documented protocols for all its financial and operational activities to ensure uniformity and transparency in its operations. A detailed internal audit strategy has been implemented to reinforce this framework. Conducted by an external chartered accountancy firm, these risk-focused audits go beyond simply checking compliance with established policies. They aim to pinpoint opportunities for refining processes and systems. The Audit Committee plays a crucial role in this mechanism, routinely evaluating the findings and suggestions from internal audits and guiding the execution of these enhancements.

OCCUPATIONAL HEALTH & SAFETY COMMITMENT

At Shivalik, the health and safety of our employees are paramount, and we are deeply committed to environmental, health, and safety considerations. We adhere strictly to all relevant legal standards related to occupational health and safety. Our manufacturing facilities regularly host training sessions to enhance employees proficiency in emergency protocols, operations, and first aid.

Occupational health and safety stand at the forefront of our operational priorities, underscoring our dedication to fostering a secure and healthful workplace. Our safety and health initiatives are woven into the fabric of our organisational practices, underlining our belief in our employees as the cornerstone of our success and our commitment to their professional development.

We have implemented various protective measures to safeguard our employees health, safety, and well-being. These include investing in technology to reduce pollution, instituting safe operational procedures, conducting extensive safety training, and providing essential protective gear. Our proactive stance is geared towards preventing hazardous conditions and practices, ensuring a secure work environment for all.

HUMAN RESOURCE DEVELOPMENT AND INDUSTRIAL RELATIONS

At Shivalik Bimetal Controls Limited., our long-term strategic priority is to drive sustainable growth through a competent, motivated, and deeply engaged workforce. We are committed to fostering an inclusive and empowering work environment that recognises individual contributions while enabling every employee to realise their full potential.

We actively promote a culture of collaboration, belonging, and mutual respect, ensuring that our people feel connected, valued, and aligned with the organisations goals. As of March 31, 2025, our total employee strength stood at ~1000 , reflecting our continued emphasis on capability building and organisational development.

During the year, we maintained harmonious and constructive industrial relations across all locations. This favourable climate is a direct outcome of our people-centric policies that prioritise transparency, open communication, and continuous engagement. By investing in employee development and nurturing a culture of mutual trust, we have not only strengthened our operational effectiveness but also laid a robust foundation for future resilience and growth.

Our unwavering focus on workforce well-being and development remains central to our success as we navigate evolving business demands and opportunities.

MANAGEMENT OUTLOOK

With a solid foundation and refreshed leadership, we are well-positioned to accelerate growth while preserving our legacy of precision and innovation.

As we enter FY2026, Shivalik Bimetal

Controls Limited. remains confident in its long-term growth trajectory, supported by a robust business model, diversified product offerings, and a resilient financial foundation.

Despite global macroeconomic uncertainties and input cost pressures witnessed in FY2025, our ability to maintain stable revenues and protect core margins underscores the inherent strength of our operations.

With a growing emphasis on precision components across sectors such as electric mobility, smart metering, industrial automation, and consumer electronics, we see sustained demand for our Shunt Resistors and Thermostatic Bimetal solutions. Our export and domestic mix remains healthy, and we continue to leverage our technical leadership and engineering capabilities to serve high-potential end-use segments across geographies.

The recent management transition marks a new chapter in our journey. We remain deeply committed to preserving the legacy of quality and innovation while pursuing operational excellence, market expansion, and value creation. With a net debt-free balance sheet, a strong liquidity position, and ongoing investments in talent, automation, and product innovation, we are well-positioned to capitalise on emerging opportunities.

Our strategic focus remains on strengthening global customer relationships, expanding capacity judiciously, and enhancing internal efficiencies. As we look ahead, we are optimistic about returning to a growth-led trajectory while upholding the trust of all stakeholders through discipline, agility, and purpose-driven execution.

FORWARD-LOOKING STATEMENTS

In the "Management Discussion and

Analysis" section, specific assertions about the Companys goals, forecasts, estimates, expectations, or projections might be considered forward-looking statements under the relevant securities laws and regulations. Its crucial to acknowledge that the actual outcomes could substantially deviate from what is suggested or indicated by these forward-looking statements. Various elements, such as economic dynamics influencing demand, supply, and pricing in domestic and international markets, fluctuations in currency exchange rates, modifications in governmental regulations and taxation policies, and other unforeseen factors, could significantly affect the Companys operational performance.