Ultra Wiring Connectivity Systems Ltd Management Discussions

Industry Structure and Developments

The automotive components industry continued to demonstrate resilience during the financial year 2025 26, supported by steady growth in domestic automobile production, increasing demand from the replacement market, and continued emphasis on vehicle safety and reliability. Government initiatives promoting domestic manufacturing, infrastructure development, and the adoption of advanced automotive technologies have further strengthened the long-term prospects of the industry.

The Companys principal products wiper blades, automotive fuses, and electrical connectors are critical safety and electrical components used across passenger vehicles, commercial vehicles, two-wheelers, agricultural equipment, and industrial applications. The increasing integration of electronic systems in vehicles, including electric vehicles (EVs), continues to create opportunities for higher-value products and technologically advanced components.

Business Overview

The Company is engaged in the design, manufacture, and supply of high-quality wiper blades, automotive fuses, and electrical connectors catering to Original Equipment Manufacturers (OEMs), replacement markets, distributors, and industrial customers.

During the year under review, the Company continued to focus on operational excellence, customer satisfaction, product quality, and manufacturing efficiency. Efforts were directed towards improving productivity, strengthening customer relationships, enhancing quality standards, and expanding market presence while maintaining prudent cost controls.

Opportunities and Outlook

The Company expects favourable business opportunities driven by:

Continued growth in the Indian automotive industry. Rising demand for replacement automotive components. Expansion of electric and hybrid vehicle manufacturing.

Increasing localisation of automotive components under the "Make in India" initiative. Growing export opportunities in emerging and developed markets. Rising customer preference for premium and durable automotive safety products.

Technological advancements in automotive electrical systems requiring advanced connectors and protective devices.

The Company remains committed to strengthening its manufacturing capabilities, improving operational efficiencies, expanding its customer base, and developing innovative products to support sustainable long-term growth.

Threats, Risks and Concerns

The Companys operations are exposed to various business risks, including:

Volatility in prices of raw materials such as rubber, steel, copper, engineering plastics, and polymers. Intense competition from domestic and international manufacturers. Supply chain disruptions affecting procurement and production schedules. Foreign exchange fluctuations impacting imports and exports. Technological changes requiring continuous product development. Regulatory changes relating to automotive safety, quality, and environmental standards. Changes in customer demand and market dynamics. Inflationary pressures affecting manufacturing and logistics costs.

The Company continues to monitor these risks closely and has implemented appropriate mitigation measures, including supplier diversification, inventory optimisation, continuous product development, and effective cost management.

Segment-wise or Product-wise Performance

The Company operates primarily in the automotive component manufacturing segment with the following principal product categories:

Wiper Blades Automotive Fuses Electrical Connectors

During FY 2025 26, the Company continued to witness stable demand across its product portfolio from OEM and aftermarket customers. Manufacturing operations remained focused on improving productivity, reducing wastage, enhancing product quality, and ensuring timely delivery to customers. The Company also continued its efforts towards product diversification and expanding its presence in domestic as well as export markets.

Financial Performance

During the financial year ended 31 March 2026, the Company maintained its focus on sustainable growth through operational efficiencies, prudent financial management, and customer-centric business practices.

Revenue performance was supported by consistent demand across key product categories. The Company continued initiatives to optimise manufacturing costs, improve inventory management, enhance production efficiency, and strengthen working capital management.

Profitability during the year was influenced by market conditions, raw material prices, operating efficiencies, and product mix. The management remains focused on improving margins through automation, process improvements, value engineering, and disciplined cost control measures.

Internal Control Systems and Their Adequacy

The Company has established an adequate system of internal financial controls commensurate with the size, scale, and nature of its operations.

The internal control framework is designed to ensure:

Protection of Company assets.

Accuracy and reliability of financial reporting. Compliance with applicable laws and regulations. Efficient utilisation of resources. Effective monitoring of operational performance.

Prevention and detection of frauds and irregularities.

The Company has a robust internal audit mechanism, and the Audit Committee periodically reviews the adequacy and effectiveness of the internal control systems. Recommendations arising from internal audits are implemented promptly by the management.

Quality Management

The Company continues to maintain stringent quality standards throughout its manufacturing processes. Product quality remains one of the key differentiators for the Company in serving both OEM and aftermarket customers.

Continuous improvement initiatives include:

Process standardisation. Preventive quality controls. Product testing and validation.

Continuous monitoring of customer feedback.

Improvement in manufacturing processes through automation and lean practices.

Research and Development

The Company continues to invest in product development and process improvement initiatives aimed at enhancing product performance, durability, and manufacturing efficiency. Research and development activities are focused on:

Development of improved wiper blade designs. Advanced electrical connector solutions. Reliable automotive fuse technologies. Material optimisation. Manufacturing process improvements. Cost reduction through value engineering.

Human Resources and Industrial Relations

The Company considers its employees to be its most valuable asset and believes that organisational success depends upon a skilled, motivated, and committed workforce.

During FY 2025 26, the Company continued to invest in employee training, technical skill development, safety awareness, leadership development, and employee engagement initiatives.

Industrial relations remained cordial throughout the year, and the Company maintained a positive work environment based on mutual trust, teamwork, integrity, and continuous improvement.

Health, Safety and Environment

The Company remains committed to maintaining high standards of occupational health, workplace safety, and environmental sustainability.

The Company continued to implement various initiatives including:

Workplace safety training programmes.

Compliance with statutory environmental regulations. Energy conservation measures. Waste reduction and recycling initiatives.

Safe handling of raw materials and chemicals.

Continuous monitoring of workplace safety standards.

No major safety or environmental incidents were reported during the year.

Information Technology

The Company continues to strengthen its information technology infrastructure to support efficient manufacturing operations, financial reporting, inventory management, procurement, and customer service. Cybersecurity measures and data protection controls are periodically reviewed and upgraded to address emerging risks.

Future Outlook

The Company remains optimistic about future growth prospects supported by increasing vehicle production, rising demand from the replacement market, expanding automotive electronics, and opportunities arising from electric mobility.

The management will continue to focus on:

Capacity utilisation and operational excellence. Product innovation. Customer diversification. Export market expansion. Cost optimisation. Quality enhancement. Sustainable and profitable growth.

Cautionary Statement

Statements made in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations, or predictions may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied due to various factors including changes in economic conditions, government policies, market demand, raw material prices, foreign exchange fluctuations, technological developments, competitive pressures, and other risks beyond the Companys control. The Company assumes no responsibility to publicly amend or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required under applicable law.

FOR AND ON BEHALF OF THE BOARD

ULTRA WIRING CONNECTIVITY SYSTEM LIMITED

Sd/-

Sanjay Mathur

Chairman & Managing Director

(DIN: 00285032)

Place: Faridabad

Date: August 24, 2026