Universal Cables Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS

Indias growth story has moved into a new transformation stage. The production-linked incentive scheme, the National Infrastructure Pipeline, Gati Shakti, Asset monetisation, and the Digital India Stack have created the foundations for sustained acceleration. The next phase will require a steady surge in investment to fund the three transformations now underway in human development, energy systems and compute infrastructure. In the overall energy systems, the efficient transmission and distribution of electricity are central to a reliable and modern power infrastructure. Power cables play a vital role in this ecosystem, enabling the bulk transfer of electricity from generating stations to substations, and subsequently for distribution to end consumers. Additionally, Indias push to become the worlds third largest economy by 2030, with a targeted GDP of over $ 7 trillion, is being underpinned by substantial investment in infrastructure wherein renewable energy is, interalia, emerging as key driver of growth. The development trajectory of the energy sector in India will therefore be shaped by three key trends in coming period i.e. the evolving nature of the oil imports mix by sources and crude grades, the rising share of clean fuel in energy mix and the continued rise of private capital in capacity creation in crucial reform areas including renewables, nuclear energy and power distribution.

Indias power sector is entering a multi-vector upcycle that is broader and more durable than any single-theme narrative typical of the past. Several forces are covering with more levers of demand led by new load vectors and deepening of electrification across end-uses, a capex cycle that runs renewables and a thermal restart in parallel. The transmission capex rebound after nearly a decade of underinvestment, storage (BESS and pumped hydro) emerging as the new coal availability equivalent of last cycle. The demand is no longer a one-engine industrial capex story but now broad-based with incremental growth likely to be driven by cooling load, data centres, electrification and policy-supported manufacturing, though actual growth still depends on externalities. Peak demand has moved higher v/s history, boosted by urbanisation and rising per capita consumption. On transmission, India is already in a multi-year upswing. The CEAs National Electricity Plan (Transmission) and subsequent analysis imply 7.30 trillion of T&D capex between FY 2027 to FY 2036, alongside large additions of 400kV/765kV AC, new HVDC capacity, and inter-regional transfer capability. The draft National Electricity Plan 2026 establishes a structured mechanism for resource adequacy at national, state and Discom levels to ensure reliable 24x7 electricity supply. The NEP 2026 also outlines a per capita consumption of electricity 2000 kwh by 2030 and 4000 kwh by 2047. The framework also supports Indias climate goals, including a 45% reduction in emission intensity by 2030 and a total transition to net-zero by 2070. While the sector has undergone a significant transformation, persistent structural challenges, particularly the financial stress of distribution companies, non-cost reflective tariffs, and cross-subsidisation, continue to impact sectoral sustainability. Addressing these new realities, the draft NEP 2026 provides a forward-looking roadmap focused on reliability, affordability, competitiveness, and environmental sustainability.

Cables & Wires are considered a broad-based proxy on rising power and infrastructure capex. As Indias energy demand rises and the system requires significant additions in generation, transmission, distribution and industrial infrastructure, the requirement for all voltage grades of cables (underground cabling), overhead conductors and specialty cables may also increase materially. Annual transmission line additions are expected to rise sharply over the next few years, supported by rising investment in interstate transmission systems and growing adoption of HVDC corridors for long distance power transfer. Since every transmission project requires meaningful cable and conductor content, the segment benefits directly from the broader T&D capex cycle. In addition, the push for domestic manufacturing, industrial expansion, data centre development, renewable energy grid corridors and the replacement of ageing grid infrastructure provide an added layer of demand beyond pure utility capex, making cables and wires one of the more diversified and scalable beneficiaries of the energy security theme. Upgradation and augmentation of existing electrical infrastructure to integrate renewable capacity additions are also contributing significantly to market expansion. Furthermore, the governments push towards domestic manufacturing through Make in India and Atmanirbhar Bharat initiatives has strengthened the push toward reducing imports and boosting indigenous production.

Extra High Voltage (EHV) and High Voltage (HV) cables are primarily deployed in power generation stations, sub-transmission networks, large switchyards, and major industrial, commercial, and residential developments. EHV XLPE cables offer a viable alternative for underground transmission, particularly in urban areas where overhead lines are constrained by space limitations or environmental concerns. While EHV XLPE cables have technical limitations regarding length, they can offer enhanced reliability and reduced maintenance compared to overhead lines. The domestic EHV cable market, currently at 30 billion is projected to grow at a 19% CAGR. The growth prospects for EHV cables appear strong, driven by government funded initiatives and regulatory reforms in the power sector. Government led infrastructure initiatives like Affordable Housing and Smart City Mission are accelerating urbanisation beyond metros, driving higher power demand in Tier 1 and Tier 2 cities. This may boost the shift from overhead transmission to underground cables, creating strong growth opportunities for high-voltage and EHV cables. EHV cable manufacturing requires extensive customisation tailored to specific end-user industries, which favour established players with a proven track record of quality assurance, uninterrupted supply, and pre-qualification approvals. Further, the growing need for HVDC cables, which play a crucial role in long-distance, high-capacity power transmission, especially as India accelerates its renewable energy initiatives. Currently, these specialised cables are imported, but with multiple HVDC projects lined up by the government in the coming years, the Companys plan of in-house production will put it ahead of the curve in supporting Indias infrastructure growth. The Company is not only focused on the domestic market by is also eyeing international opportunities, where demand for HVDC cables is surging. Medium Voltage (MV) cables are predominantly used in power distribution networks, serving as critical links that connect generation with end-use applications. Both MV and HV cables are indispensable to the power sector, acting as key enablers of operational efficiency and the shift toward sustainable energy solutions. Low Voltage (LV) cables, in addition to their role in distribution, cater to a wide array of applications across various industries and residential sectors.

Cables and Wires is a compounding growth sector. Being a basic consumable, it is a direct beneficiary of capex in infrastructure, industrial and real estate sectors. Historically, the industry has grown at 1.5x of GDP growth but with rising capex across sectors like power generation, T&D, renewable energy, data centres, real estate, infrastructure, railways, metro, defence, EV, semiconductors and other manufacturing industries, the cable and wire industry is expected to grow at 2x of GDP and compound at 13% CAGR over next 5 years. Typically, 3-3.5% of project capex is spent on cabling activities. At 13% CAGR, the industry size is likely to touch

1500 bn by financial year 2030 from 900 billon in financial year 2025. The Wire and Cable industry may accordingly witness continued mid teen growth in near term led by strong domestic demand, aided by faster growth in certain sunrise sectors and rising export opportunities to drive multi-fold expansion in Indias share in global cable and wire market.

The world is moving from efficiency driven globalisation to resilience driven globalisation and the Company is gearing up to adapt these changes, leveraging both local strength and global opportunities. The Company is well positioned to leverage export opportunities with its advanced manufacturing, superior product quality, reliable deliveries, and diverse portfolio. The Company has established a well-diversified footprint across key regions such as the Middle East, Europe, Latin America and certain neighbouring countries.

The global energy landscape is undergoing a significant transformation, often referred to as the Energy Transition & Power Technologies industry. The key product lines in the critical energy transition equipment and power technologies industry, interalia, include high voltage electrical equipment and solutions such as capacitor banks, harmonic filters, reactive power compensation systems, thyristor-controlled series capacitors which are catered by Capacitor Division of your Company. The energy transition equipment and quality power solution products market of, interalia, capacitors and capacitor banks, harmonic filters, etc. poised for significant growth in the coming decades. As governments and businesses around the world intensify their efforts to decarbonize the energy sector, the market for energy transition equipment will continue to expand, driven by technological advancements, supportive policies and increasing public awareness of the need for climate action. Emerging markets such as India and Southeast Asia are expected to be major growth areas for energy transition equipment, as these regions are rapidly scaling up their renewable energy capacity and investing in grid modernisation. A capacity bank, also known as a capacitor bank, is a collection of capacitors connected in parallel in critical energy transition system. The primary purpose of capacity bank is to provide reactive power compensation to improve power factor and voltage regulation in electrical networks. As industries become more reliant on stable and high-quality power supply, there is a growing demand for solutions that can improve power factor, voltage stability and grid reliability. Harmonic filters are designed to reduce harmonic distortion in electrical systems caused by nonlinear loads such as power electronic devices, variable frequency drives (VFDs), rectifiers and other equipment.

Looking ahead, the Company anticipates sustainable growth, driven by robust demand and strategic capacity enhancements in power cables, wires and quality power solution products dealt with by the Company. This includes supply and turnkey projects from its EHV underground cables and quality power solution products from its facility at Satna (Madhya Pradesh). Additionally, ongoing and planned capacity augmentation for EHV, MV and LV cables are expected to further bolster growth, building upon gradual enhancements made over previous years.

In addition to capacity augmentation in cables, the Company is also investing in setting-up infrastructure for manufacturing and sale of HTLS (High Temperature Low Sag) Conductors with TS? Aluminium Encapsulated Composite Core. These conductors consist of a carbon composite core and trapezoidal aluminium strands and deliver higher power transfer capacity and lower sag at elevated temperature, along with reduced line losses. HTLS conductors are therefore rapidly emerging as a key solution for augmenting transmission capacity without any structural upgrades. In order to advance rapidly in HTLS conductor business, the Company has entered into a Manufacturing Agreement with TS Conductor Corp, USA for manufacture and sale of HTLS conductors by sourcing Aluminium Encapsulated Composite Core from TS Corp or from third party auhorised by TS Corp. TS Corp shall also supply jointing and associated accessories and guidance for installation in its integrated form as required.

The Companys flagship brand "UNISTAR", a symbol of quality and safety, continues to enjoy strong brand equity. The enduring presence of the "UNISTAR" brand alongside the M.P. Birla Group logo reinforces the Companys long-standing commitment to excellence and its legacy of trust, transparency and technology.

Economic Outlook

India is ranked as the fastest growing major economy in the world with real GDP growth at 7.40% in financial year 2025-26 and strong domestic demand driving momentum. As per Economic Survey 2026 Indias medium term potential growth has increased to 7% from 6.50% estimated three years ago, supported by reforms, strong macro fundamentals, public investment and productivity gains. While India continues to maintain strong growth driven by domestic demand and structural reforms, it remains influenced by global uncertainties such as geopolitical tensions and energy price volatility.

However, potential growth means little if the external account remains hostage to global risk aversion and geopolitical fractures. FDI inflows remain below their potential, especially for infrastructure needs. The coming decade will be crucial for India as it seeks to balance economic growth with sustainability, energy security, technological advancement and employment generation. Strategic investments in renewable energy, manufacturing, infrastructure, innovation and human capital will determine Indias long-term competitiveness in the global economy.

Sectoral Review

Infrastructure and energy are two crucial enablers of economic progress and India is focusing strongly on them in successive union budgets because infrastructure and energy are not only closely linked but also to an extent, are dependent on each other. In the Union Budget for the financial year 2026–27, the government has earmarked 12.21 trillion for capital expenditure, marking a 9% increase from the FY 2025-26 revised budget of 11.20 trillion. This allocation constitutes approximately 3.10% of the GDP and underscores the governments continued emphasis on infrastructure development, which may continue to hold the sector in good stead.

Indias electrical cables and conductors industry is entering a phase of sustained, policy-driven expansion, supported by rapid urbanisation, infrastructure growth and large-scale government interventions across the power and digital sectors. Much of this momentum is tied to central schemes that are reshaping transmission, distribution, renewable energy evacuation and digital connectivity. Flagship programmes, such as the Revamped Distribution Sector Scheme (RDSS), the Green Energy Corridor (GEC), PM Surya Ghar: Muft Bijli Yojana, the National Smart Grid Mission (NSGM) and Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) II are collectively driving extensive additions to line length, sub-station capacity, smart metering and electric vehicle (EV) charging infrastructure. Urban distribution upgrades are adding another strong layer of demand. Discoms and city utilities are increasingly shifting from overhead lines to underground cabling to reduce outages, improve safety and enhance resilience to extreme weather. Metro rail networks, smart city clusters, commercial districts and dense residential zones are mandating 11kV and 33kV underground systems, ring main units and compact substations, further accelerating the uptake of medium-voltage and high-performance cables. With interventions spanning power, mobility, digital connectivity and urban reform, government schemes are shaping a broad and durable demand base, positioning the wires and cables segment as a critical enabler of Indias next decade of infrastructure modernisation.

Indias wires and cables industry constitutes about 40% of the electrical industry and forms a crucial part in the construction and infrastructure activities of the government and private players. According to an estimate, the cable and wire industry is expected to grow 2x that of GDP growth during financial year 2025-2030, driven by capacity expansion, buoyant domestic demand led by capex cycle in power transmission and distribution, real estate and demand from emerging segments viz. data centres, EV and mobility upgrades, railways and metro railway expansion, etc. On top of this, penetration of domestic players into export markets, emphasizes the room for growth. As per Crisil Intelligence Report of February, 2026, the domestic power cable consumption may witness a growth of about 22% in financial year 2025-26 post recording a growth of about 45% in financial year 2024-25. The growth will be led by a combination of rise in volume and raw material prices. Further, the domestic consumption is expected to grow at CAGR of 9-11% between financial year 2026-27 to financial year 2028-29, continued on the back of 27% CAGR seen in financial year 2021-22 to financial year 2024-25.

All these indicate sustainable growth opportunities for products and services of your Company being an established supplier of power cables upto the voltage grade of 400 kV and also of Quality Power Solutions equipment viz. Capacitors and Capacitors Banks, Harmonic Filters, etc. for optimize energy saving and conservation.

The cable industry continues to navigate a highly volatile raw material landscape, marked by sharp and unpredictable fluctuations in the prices of metals and polymers. These trends have posed significant challenges in cost management, strategic planning, and customer pricing strategies. Copper and aluminium prices remained particularly volatile during the financial year 2025–26, with expectations of further increases in FY 2026–27 due to growing global protectionism, geo-political tensions and conflicts leading to supply chain disruptions and the recalibration of international alliances. A significant portion of raw materials, both domestic and imported, are priced in foreign currencies. Consequently, fluctuations in exchange rates, particularly of the Indian rupee against the US dollar and euro, have further compounded cost pressures. This currency volatility has emerged as a major vulnerability for the Indian wire and cable industry, particularly when combined with unpredictable commodity markets.

While many customers have aligned with industry requests to include raw material price variation clauses in contracts, certain customers continue to operate under firm price agreements. In response, the industry has proactively engaged with such customers to advocate for the adoption of Price Variation (PV) clauses as a standard procurement practice. The industry remains optimistic about expanding the share of contracts that incorporate PV mechanisms, which are critical for mitigating pricing risk and ensuring long-term sustainability.

Despite these challenges, the availability of metals and polymers to the Company have remained relatively stable given the diversified supply chain mechanism adopted by it over the years. However, amid ongoing geopolitical tensions, economic uncertainty, and rising global inflation, the future trajectory of international commodity prices remains difficult to predict. The Company closely monitors these developments and continues to adapt its procurement and pricing strategies to remain resilient and competitive in an evolving market environment.

In Search of Realistic Optimism

India presents a compelling mix of macro-economic stability, diverse sectoral opportunities and a concurrent rise in consumer and infrastructure spending and corporate investment. Together, these factors signal a potential inflection point in countrys growth trajectory. Over the past few years, your Company has significantly strengthened, streamlined and simplified business and put in place effective strategy to gradually scale up the operations and improve market share. Going forward, volatility will continue to mark economic cycle from wide spread geo political conflicts, military escalations, the redrawing of supply chains and tariff regimes. AI, energy transition and in those energy landscapes, your Company continues to take decisive, future focused steps to ensure sustained relevance by pursuing clearly defined growth priorities to stay agile and well positioned for emerging growth opportunities. In addition to the industry tailwinds, your Company is well placed to achieve the targeted growth given the fact that it is the foremost and industry leading producer of Extra High Voltage Cables with capabilities to produce EHV Cables upto 400kV voltage grade with state-of-the-art VCV process. As electricity consumption grows in India, the upgrade of infrastructure becomes imminent. Additionally, the increased focus on exports with successful completion of prestigious export orders for EHV cables upto 400kV voltage grade and orders in hand as well in pipeline are expected to drive revenue growth higher than the industry. Further, the ongoing capacity augmentation will help debottleneck capacity in phased manner by August/September, 2026 in order to sustain the growth momentum and maintain the overall market share in the wake of strong demand environment in domestic and global markets.

PRODUCT-WISE PERFORMANCE, OPPORTUNITIES, THREATS & BUSINESS OUTLOOK EHV Power Cables

The Extra High Voltage (EHV) Power Cable segment recorded a revenue growth about 33% during the year under review, compared to the corresponding previous financial year. The Companys Vertical Continuous Vulcanisation (VCV) lines, dedicated to EHV power cable production, are equipped with state-of-the-art technology and are fully aligned to meet the anticipated surge in demand for EHV cables. This modern infrastructure offers the Company a distinct competitive edge by ensuring superior product quality and faster delivery timelines.

Over the years, the Company has established itself as a leader in the EHV cable segment, offering one of the broadest product portfolios in the domestic market, with capabilities extending up to 400 kV voltage grade. The Company has over the years gained best in class credentials in EHV HVAC Cables business covering widest range of products upto 400 kV in domestic as well as Export market. With the EHV cable business poised for significant growth, it is expected to be a key driver of the Companys expansion in both domestic and international markets.

HV & MV Power Cables

During the year under review, the Companys High Voltage (HV) and Medium Voltage (MV) Power Cable segment recorded a revenue growth of around 9% over the previous financial year. This growth was primarily driven by the achievement of optimum capacity utilization and partial commencing of its MV cable capacity augmentation project, reflecting the Companys operational efficiency and responsiveness to rising demand. This robust infrastructure provides formidable manufacturing capacity and plays a pivotal role in enabling the Company to capitalize on emerging opportunities, particularly amid the strong infrastructure push in the countrys growth environment. The manufacturing setup is also designed with inherent flexibility, allowing seamless transitions between EHV and MV cable production, an advantage in managing fluctuating and asymmetric market demand.

With the Government placing strong emphasis on upgrading the power distribution infrastructure and reducing Aggregate Technical & Commercial (AT&C) losses, the demand for HV and MV power cables is expected to rise steadily, as they are essential components in nearly all infrastructure development projects.

To proactively harness these growth opportunities, the Company embarked on capacity augmentation project at its Satna (M.P.) and Verna (Goa) facilities during the financial year 2024-25 for implementation in phased manner driven by a positive business outlook and sustained demand across the full spectrum of the Medium Voltage (MV) and High/Extra High Voltage (HV/EHV) cables in both domestic and international markets. The ongoing expansion will further enhance the Companys ability to dynamically switch production between key products such as HV/EHV and MV XLPE Insulated Power Cables, ensuring responsiveness to market shifts and reinforce its operational agility.

LV Cables & Conductors

During the year under review, revenue from Low Voltage (LV) Power Cables & Conductors grew around 16% as compared to the previous financial year by achieving most optimum capacity utilisation. Recognising the strategic importance of this large and competitive market segment, the Company has completed expansion of its LV cable manufacturing capacity during the year under review, where cost efficiency and economies of scale are critical for sustained growth. The Company also envisages volume growth in Conductors business with expanded portfolio which includes HTLS Conductors with TS? Aluminium Encapsulated Composite Core to be manufactured and supplied in accordance with Manufacturing Agreement with TS Conductor Corp, USA. The LV cable segment has the widest range of applications and therefore constitutes a significant portion of the overall power cable industry. The ongoing growth in the real estate sector, metro railway projects, and smart city developments is expected to further drive demand for LV power cables.

The Company continues to maintain a well-established dealer network across multiple regions in India, ensuring effective market reach. Backed by strong brand equity, the Company does not anticipate any significant marketing challenges in scaling up its LV

cable business. Additionally, there is a clear focus on developing specialised cable products with enhanced fire safety features and environmentally responsible specifications, aligned with current market and regulatory expectations.

Rubber Cable for Original Equipment Manufacturers & Industries

During the year under review, revenue from Rubber Specialty Cables increased by approximately 30% as compared to the previous financial year. The Company continues to maintain a strong position in this niche market segment, supported by a diverse and specialised product portfolio. The Company caters to a wide range of sectors including original equipment manufacturers (OEMs), wind energy, railways, steel and cement plants, petrochemical units, heavy engineering, and mining industries.

With advanced manufacturing capabilities, including Pressurised Liquid Salt Bath Curing (PLCV) technology - the only one of its kind in India, the Company holds a competitive edge in the production of rubber-based specialty cables. Furthermore, the presence of in-house compounding facilities allows the formulation of a wide spectrum of polymer compounds tailored to specific customer requirements.

However, the conventional rubber cable market has seen a steady contraction, primarily due to the increasing substitution by Electron Beam Irradiated Cross-Linked Cables in various applications. Acknowledging this industry shift, an associate entity of the Company has established a facility for manufacturing Electron Beam Cables, leveraging the synergistic infrastructure available within the Group. This strategic move positions the Group to retain its relevance in the evolving specialty cable market.

Light Duty Wires & Cables

The Goa unit of the Company manufactures Light Duty Wires & Cables and multicore flexible cables. During the year under review, the aggregate revenue from these segments recorded a growth of around 23% compared to the previous financial year. This performance was primarily driven by production capacity augmentation which became fully operational in third quarter of year under review, supported by sustained demand for light-duty wires and cables, including winding wires, specialised building wires, flat cables, and multicore flexible cables.

While the demand for PVC winding wires and flat cables has plateaued, the Company has strategically positioned itself as a dedicated supplier to major Original Equipment Manufacturers (OEMs).

Quality Power Solutions viz. Capacitor and Capacitor Banks, Harmonic Filters, etc.

The Quality Power Solutions business of the Company achieved a significant milestone by surpassing the turnover of ‘ 179.17 crores for the first time, registering a growth of around 78% during the year under review compared to the previous financial year. The demand outlook remains positive, driven by the initiatives of public and private utilities and renewable energy developers to enhance power quality through the integration of quality power solutions into their systems coupled with export opportunities. The Company offers a comprehensive product portfolio that includes Low Tension (LT) and High Tension (HT) capacitors up to the 132 kV class. These are classified into fixed-type shunt capacitors and automatically switched capacitors for Low Voltage (LV), Medium Voltage (MV), and 33 kV systems. In addition, solutions such as Active Harmonic Filters (AHF), and Hybrid Filters, etc. which were introduced earlier, have been gradually gaining market acceptance and have received a strong response from the infrastructure segment. The growing requirement for reactive power compensation in industrial, transmission, and distribution applications is expected to further boost demand. There is also a rising need to supply bulk capacitors to the national grid, particularly at locations connected with solar and wind power. Furthermore, demand is increasing for tuned and high-pass harmonic filter capacitor banks at such grid points, to help bring total harmonic distortion (THD) and total demand distortion (TDD) levels within the IEEE 519 standard, as mandated by the Central Electricity Authority.

The Quality Power Solutions market in India has witnessed significant growth in recent years, driven by ambitious targets for renewable energy deployment, including solar, wind and hydroelectric power. The Indian power quality products market is expected to grow at a CAGR of 9% in the period from 2023-2028. The industry is expected to grow from USD 798 Million in 2023 to USD 1.22 Billion in 2028. In 2028, capacitor banks will contribute around 28.70% of the market share followed by harmonic filters, static var compensator (SVC), static synchronous (STATCOM) and others at 19.10%, 13.30%, 5.40% and 33.50% respectively. Whereas the public utility market by application will continue to contribute the largest share at 46.10% followed by industrial and others at 31.30% and 22.70% respectively as of 2028.

To seize these emerging opportunities, the Company has been actively focusing on contracts for supply, installation, testing, and commissioning (SITC) of MV and EHV capacitors, especially from state utilities and EPC players operating in wind and solar energy. To enhance competitiveness, the Company has established an in-house manufacturing setup for MV automatic power factor control panels in order to align its products offerings meeting with qualification criteria in public tenders. Furthermore, the Company continues to expand its business by supplying and commissioning 33 kV single-tuned and high-pass harmonic filters, along with 33 kV automatic power factor control systems for renewable energy projects. Harmonic filter banks have already been successfully commissioned for solar power plants in select states.

In response to the evolving energy ecosystem, the Company has repositioned itself as a solution provider, delivering comprehensive, concept-to-commissioning quality power system solutions. This realignment includes not just the supply of key equipment, but also technical consulting, onsite commissioning, and maintenance services, thereby enhancing its value proposition in the market.

Exports

The Company has adopted a multipronged strategy to drive its export business, which includes directly participating in international tenders floated by overseas customers as well as executing export orders through its long-standing overseas technical collaborator. During the year under review, revenue from direct exports stood at 169.04 crores. The Company has successfully expanded its presence in key international markets across Middle East, Europe, Latin America and Australia along with few neighbouring countries.

With a robust pipeline of pending and anticipated orders, the Company expects sustained growth in its export turnover. This momentum is further supported by favourable government policies, the development of a domestic ecosystem for raw materials, and the global shift towards a "China plus one" sourcing strategy, all of which are expected to open up new geographies and enhance export revenues. The Company has also been granted the prestigious "Two Star Export House" status by the Directorate General of Foreign Trade, Ministry of Commerce, Government of India, which remains valid until 31^st March, 2028.

Overseas Competition

Presently, no threat is perceived in the High Voltage (HV), Medium Voltage (MV), and Low Voltage (LV) categories. However, in the Extra High Voltage (EHV) segment, the Company faces competition primarily from EPC contractors supported by overseas cable manufacturers. The intensity of such competition stands mitigated to some extent by the implementation of the "Preference to Make in India" public procurement policy, which grants a margin of preference to domestic manufacturers, provided they meet the stipulated local content requirements and Quality Control Orders issued by the Government allowing imports of only quality compliant products into the country. These policy frameworks are gradually shifting the competitive landscape, fostering a more level playing field, and offering greater opportunities for India-based manufacturers.

FINANCIAL REVIEW

The financial performance of the Company during the year 2025-26 is stated as below:

• Your Companys total Revenue from Operations for the fiscal year increased by approximately 25.50% at 302267.33 lakhs as compared to 240838.62 lakhs in the previous year.

• The aggregate Other Income during the year 2025-26 increased to 2831.78 lakhs as compared to 2281.39 lakhs in the previous year mainly due to increase in Other Non-Operating Income.

• The Company Earnings before Interest (finance costs), Tax, Depreciation and Amortisation (EBITDA) during the current fiscal year 28895.84 lakhs was up by 42.75% from the previous fiscal year 20241.69 lakhs and Profit Before Tax (PBT) of

13513.34 lakhs was up by 89.66% from previous fiscal year at 7125.19 lakhs.

• During the year under review, the Company Profit After Tax for the fiscal year increased 68.52% year-on-year to 9652.87 lakhs, compared with 5727.96 lakhs in the previous fiscal year.

• The finance cost has increased to 11489.52 lakhs (previous year 10384.69 lakhs).

• During the year, the Company has maintained optimum working capital, constant credit period levels from suppliers and strategically maintained inventory levels to support the increased volume of operations.

• There was no change in the capital structure during the year. The Other Equity of the Company stood at 88191.35 lakhs during the year under review as compared to 81103.39 lakhs in the previous year.

• The Inventories in absolute term increased to 60752.28 lakhs as on 31^st March, 2026 from 39532.18 lakhs as at the end of the previous year.

• The Trade Receivable increased to 121981.11 lakhs as on 31^st March, 2026 from 91914.65 lakhs as at the end of the previous year.

• Key Financial Information (Standalone & Consolidated):

Particulars	Standalone		Consolidated
	2025-26	2024-25	2025-26	2024-25
Revenue from Operations	302267.33	240838.62	302267.33	240838.62
Profit before Finance Costs Depreciation/ Amortisation and Tax (EBITDA)	28895.84	20241.69	37122.49	24862.11
Net Profit after Tax	9652.87	5727.96	21739.99	8938.51
Property, Plant & Equipment and Intangible Assets	39711.48	23452.21	39711.48	23452.21
Investments and Investment Property	38508.28	40773.51	167408.22	163913.17

• For detailed information on the financial performance with respect to operational performance, a reference may please be made to the financial statements.

• Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratio.

Ratios	2025-26	2024-25	Variation	Reasons for Change
Debt-Equity Ratio (in times)	1.28	1	28.13%	Increase in the Debt-Equity Ratio was mainly due to additional borrowings availed to support growth in business and financing capital expenditure for ongoing capacity expansion project.
Debt Service Coverage Ratio (in times)	0.07	1.17	(40.50%)	Decrease in Debit Service Coverage Ratio as debt servicing commitments increased due to additional borrowings availed during the year.
Return on Equity Ratio	10.95	6.70	63.46%	Increase in Return on Equity is mainly driven by improvement in profitability as compared to previous year.
Net Capital Turnover Ratio (in times)	7.45	4.53	64.69%	Increase in Net Capital Turnover Ratio is on account of increase in turnover as compared to previous year.
Net Profit Ratio	3.19	2.38	34.27%	Increase in Net Profit Ratio due to higher profitability and improved operational efficiency during the year as compared to previous year.
Return on Investments (in %)	(14.84)	(31.67)	(53.15%)	Decrease in Return on Investments is attributable to the decrease in Fair Value of Investments.

• Details of changes in Return on Net Worth is as below:

Ratio	2025-26	2024-25	Variation	Reasons for Change
Return on Net Worth (in %)	10.53%	6.77%	55.49%	Due to increase in profitability.

RISK & CONCERNS:

The Company embodies risk control measures for enhancing and protecting the values of the Company. The Company acknowledges risks, not limited to operational, financial or compliance that could affect the future performance and market positioning of your Company. In this backdrop, the Company takes a qualitative risk assessment rather than a quantitative approach. The Company embraces a risk management portfolio for forecasting and mitigating the impact of internal and external risk factors. The internal risks which are mainly associated with the operations of the Company and the external risks which are linked with the economic and market volatilities are stated below:

INTERNAL RISKS: Strategic Risk

Considering the comprehensive view of the challenges faced by the Company, risk mitigation policies have been put in place. The strategic risk alleviation is aimed at protecting the values of the Company. Strategic risk factors lurk in the Companys decision on various strategic objectives, e.g., organisational need to change roles and responsibilities, stronger governance, infusing of new skills, Capex portfolio, new competing requirements, degree of exposure in business risk-taking based on speculative gains, quantum of contingencies in different functions, timing decision on entering into new businesses, hiving off or vacating existing business activities, inclusive growth plan versus inorganic growth strategy. In pursuit of value against risk factors, the Company decides on balancing the growth, risk and return.

Policy Risk

The Company integrates the risk control measures into the organisations overall governance by periodically assessing the risks of the policies for internal operations and the statutory compliances. Based on the risk assessment, the policies are amended from time to time.

Employee Turnover Risk

The Company retains a team of qualified and experienced personnel where the attrition rate is lower than the industry average. Poaching of personnel by other industries both domestic and overseas is a risk factor. The loss of key personnel to competitors is a risk where the Companys technical information would be acquired by the competitors. The Company is motivating and rewarding employees to retain talent. The Company also maintains a policy to acquire talent as a succession plan to support the Companys growth strategy.

Working Capital Risk

The Company caters to the infrastructural and industrial segments, which largely depends on the economic buoyancy, budgetary allocation and funding from banks and institutes. Therefore, any setback in the economy and curtailment in budgetary allocations, etc. directly impinges on the demand emerging from the infrastructural and industrial segments. The risk of economic downturn and consequent curtailment in funds allocation could lead to fund scarcity and delayed realisation of receivables which in turn would affect the working capital requirements of the Company. The Company gives priority to the customers who have sound financial locus standi. The Company closely monitors the working capital requirements by constant follow up on receivables and maintaining lean and symmetric inventories.

Liquidated Damage Risk

The Customers have become more demanding in terms of price and delivery period. Owing to intense competition, short delivery contracts have to be accepted by the Company. In case of failure to meet the delivery period, the Company is at a risk of being imposed with liquidated damage. The Company is constantly mitigating its internal constraints to improve the efficiencies in an integrated manner in all the functional areas including execution of turnkey/works contracts to reduce the possibilities of such risk.

Operational Risk

Operational risks related to people, processes, systems and external factors have a potential risk on the Companys performance. To reduce such risk, the Company has a risk-review policy in all areas of operations.

Project Risk

The Company is executing several turnkey projects. To implement such projects, statutory obligations from various authorities relating to right-of-way permissions are necessary. As these statutory obligations are neither in the control of the user nor within the control of the Company, this is a potential risk which may cause deferment of the projects resulting to blockage of receivables and cost over-run. The Company constantly keeps the customer informed on such delays involving statutory requirements in order to avoid the imposition of liquidated damages. The Company meticulously monitors the projects with constant coordination between the execution team at the respective sites with review at regular intervals. Prior to targeting project contracts, the Company carefully weighs the feasibility of timely implementing the projects.

Technology Risk

Your Company is agile on the technology frontier by constantly reviewing new technology in terms of product and process to avoid obsolescence. The Company has a background of constantly upgrading the technology to maintain its position at par with international players and remain ahead of its peers in the home-turf.

Growth Stagnation Risk

The Company has a profitable growth plan and avoids the risk of "growth-trap". The Company believes in a "good growth plan" for sustainability rather than being over-zealous to get bigger and brasher for risky acquisition for attaining a higher market share on a low margin strategy. The strategy of your Company is to optimise its resources on high-end-high-margin products as opposed to high volume-low-margin products. Hence, the top-line growth is compensated with a better bottom-line ensuring better returns on capital employed.

Product Development Risk

Your Company has embraced the principle of the constant need for product innovation as per evolving industry standards. The newly developed products are validated by type testing and long-term accelerated ageing test from a recognised independent testing laboratory, if required. As these tests have significant cost involvement, any failure in the product development results to financial and opportunity loss. The recognised Research & Development Lab and in-house testing laboratories of the Company have NABL Accreditation and is equipped with comprehensive testing facilities which can verify and assess the quality of the product during the process and final stage prior to conducting the certification tests at an independent laboratory.

Brand Attrition Risk

New brands of various players have entered into the market segments which are popularised through advertising media and may gradually eclipse the Companys brand. The hallmark of the Companys success in retaining the sheen of its brand is by way of maintaining a top-quality image. The Companys brand image is synonymous to the best-of-class in quality. The Company issues periodical advertisements in some of the prestigious technical journals, participates in seminars & industrial exhibitions, publish technical papers to retain the brand image and invites customers and consultants for exposition of its manufacturing facilities. These activities are aimed at brand building and promotional strategies.

EXTERNAL RISKS:

Artificial and non-explicit trade barriers in certain export markets

The global power cables and capacitors trade is being increasingly exposed to trade policies and tariffs aimed to support and protect local manufacturing. The ongoing geopolitical events and economic shifts by way of growing global protectionism, supply chain disruption and the recalibration of international alliances and the rise of economic nationalism have also created fluid situation forcing to reassess dependencies and adapt to new dynamics. As a consequence, escalating costs of raw materials and logistical operations, supply chain bottlenecks caused by geo-political developments, regional conflicts and social unrest may impact business operations. Further the implementation of sustainable practices in manufacturing and operations adhering to stringent environment and safety regulations can be costly and complex in nature for compliance as limited availability of sustainable materials and standardisation challenges hinder the industrys efforts to adopt environment friendly practices. Environmental, Social and Governance (ESG) factors gained global relevance as key indicators for long term value creations requiring organisations to demonstrate integration of sustainable development practices in their operations. The Company has initiated appropriate measures for ESG implementation with internal and external stakeholders engagement in line with established global practices.

Market Demand Risk

Historically, the demand of power cables has been cyclical in pattern. Your Company is dependent on the infrastructural sector, industries and original equipment manufacturers. The Government policies have a direct bearing on the demand from the various market segments. Your Company has a broad base clientele, wide product range and flexible manufacturing set-up, therefore, it can somewhat off-set the cyclical or depressed demand of affected segment with the other segments. From time-to-time, the Company makes changes in its product- mix to suit the order and demand pattern.

Customer Risk

Your Company is prone to risk of customers priority shift, increasing customer power and over-reliance on major customers. To mitigate these risks, your Company maintains constant touch with its clientele to understand and deliver products and services aligned to its changing priorities. Your Company maintains strong business relationship with large customers by providing technical guidance and information, support on urgent and crisis requirements to remain virtually indispensable to the client. Your Company has built a reputation as a preferred supplier with most of its customers by creating a quality trust in a bid to protect itself from competition and entry of new players.

Competition Risk

The nature of competitive risk is distinct for each product group. In the EHV segment, the competition is from both, the Indian and the overseas manufacturers. The risk involves entry barriers which are gradually being made more stringent by the customers to screen out several players. It is imperative for the Company to acquire performance record credentials from the user on supply and installation to qualify as an eligible bidder. It is also necessary to repeat test and revalidate test reports for specific type & design of the product. The Company has to keep at par with the development and innovation introduced by the multinational companies to avoid the risk of obsolescence. In the HV & MV segment, new entrants pose a risk on the price competitiveness. The LV segment is intensely competitive with the proliferation of regional producers of low-quality-low-margin products which has been pernicious to health of the organised sector. The Company is addressing to the quality conscious customers to retain its market share.

Raw Material Price Risk

The prices of international commodities e.g., copper, aluminium, lead and polymers, which are the key raw material components, are subject to considerable price volatility. Further, strict implementations of Quality Control Order(s) by the Government without adequate and competitive local production facilities matching with global quality standards for key inputs also poses risk of price volatility and leads to unjustified price increases. Commodities such as Aluminium and copper have use cases for higher applications in energy transition products. As a result, green inflation risks remain high. Since the market prices of cables are generally on firm price basis, the seesawing prices of these commodities can severely impact the cost of the product where the consequential risk must be borne by the Company. The Company gives priority to customers who allow price variation on input raw materials. In case of firm price contracts with protracted deliveries, the Company is actively pursuing back-to-back hedging that involves identifying the exposure timely and hedging it with vendor(s) at fixed price or by taking a future position at London Metal Exchange (LME) promptly to avoid such risk. Occasional scarcity of polymers in the global market is a risk in terms of meeting customers delivery commitments. Over and above, these polymer prices are sensitive to the crude oil prices where the volatility has been unprecedented. The Company is ameliorating such risk by procuring the materials in tranches to even-out price fluctuations. However, the relentless inflation trend in commodities which has been and will be a pain-point in the near future as well.

Other External Economic Risks

- Geo-political and Geo-legal risk: Geo-legal is an emerging risk confronting corporates which impacts commercial contracts and other obligations. Further, Geo-political uncertainty and shifting tariffs are driving a need for adaptive and compliant supply chain. While short term disruptions are inevitable, they offer critical opportunity to assess value chains and incorporate greater agility, sustainability and foresight. As supply chain evolve into regenerative alliance driven system, blending sustainability, technology and customer centricity, they are going to become the core engines of reinvention, resilience and trust.

- Gen AI risk: Going beyond the anticipated disruption, GenAI is rewriting the rule book of businesses. It has a profound impact on business and services.

- Cybersecurity and data privacy risk: The more financial data the company has, the more vulnerable it is to cyberattacks.

- Environmental, social and governance risk: The corporate culture of the organisation continues to be very important. The modern workplace has no place for discrimination or harassment. In an era of aggressive social media communications and presence of alert proxy advisers, poor work culture or any wrong step can hurt investor sentiments.

INTERNAL CONTROL SYSTEMS

The Company has an adequate system of internal control in place, which assures of: Authorisation, recording, analyzing and reporting of transactions.

Recording and adequate safeguarding of assets.

Upkeep of accounting records and trustworthiness of financial information.

Key elements are:

Clear and well-defined organisation structure and limits of financial authority and well laid out standard operating procedures (SOPs) for each functional authority and department; Corporate policies for financial reporting, accounting, information security, investment appraisal and corporate governance; Annual Operating Business Plan (AOP) including identifying key strengths, weaknesses, opportunities & threats; External firm of Chartered Accountants to carry out internal audit of all functions including physical verification of inventories; Risk Management Committee and Audit Committee of the Board which monitors and reviews all risks and control issues and financial matters; Computerized and integrated financial and accounting functions, information feedback system of process parameters and back tracing from finished products to raw material stage; The Company has implemented SAP S/4HANA 2022, an advanced version of enterprise resource planning (ERP) software, to achieve improved data management, seamless integration of functional departments, and enhanced internal control mechanisms.

Routine evaluation of all financial operating and information technology system; and Laying down risk assessment and minimisation procedures and regular review of the same.

MATERIAL DEVELOPMENT IN HUMAN RESOURCES/INDUSTRIAL RELATIONS

The Company do realise the importance of creating high performance organisation with motivated work force rather than having a transactional relationship, by leveraging deeper bonds with the employees. The Company is creating space where people feel empowered to bring their authentic selves to work, to learn from challenges to grow both personally and professionally. The Companys policies are accordingly framed for organisational excellence by developing and inspiring the true potential of Companys human capital to fully channelize the people power and create inclusive workplace through effective leadership, meaningful values and a culture where employees experience high levels of trust, such that each employee is able to bring their best self to work. The Company is creating a workplace culture where leaders empower all individuals to reach their full potential and where every employee feels a sense of belonging regardless of their demography. During the year, capability building process was further strengthened for the core business purposes including reskilling and upskilling not only for adapting the emerging technological advancements in power cable and quality power solution products industry but also about anticipating change and preparing the Company for it with agility, empathy and empowerment.

Implementation of healthy practices of Human Resource Development activities for overall development of human assets and induction programme for professionally qualified and skilled manpower including internal and external training programmes, workshops & seminars are the constant feature of the Company. The Company fulfil its task of training and development of its employees to the maximum extent by sponsoring them to relevant professional training programmes and courses. The Company is fully seized of the prevailing unprecedented volatility from tariffs to supply chain disruptions, military conflicts requiring more layered and demanding talent as the future is becoming increasingly challenging. The Company is therefore carefully training and empowering senior management team to handle complexities in business on a larger scale, pivot quickly and manage ambiguity, equip with tech fluency and rally together diverse teams and bring people centric leadership to the table in order to make use change velocity and disruptions as opportunity to drive competitive advantages. Further, more than quantitative factors, qualitative factors such as leadership style, entrepreneurial thinking, growth and challenging mindset, learning and change agility are playing a significant role in hiring decisions.

The Company is dedicated to ensuring the well-being, engagement and overall development of employees and their families by shaping culture, enhancing performance and driving resilience. The Company believes that employees well-being will be a crucial component in employees performance and retention and has a far reading impact on the Companys growth journey in future with the motive to keep them engaged for the long term. The Company maintains residential township for its employees at Satna with Staff Recreation & Health Center together with Reading Room, Staff Club, Indoor/Outdoor Game facilities, Temple, Children Park, Canteen, Dispensary, etc.

The Company is committed to establish Risk-free and Zero accident work environment. The Company also organises various social activities and undertakes rural development, healthcare and educational infrastructure and support to the ones who need it most, environmental awareness, women empowerment and skill development, etc. under CSR.

The Company conducts business in environmentally conscious way by negating the damage with environmentally positive and socially responsive initiatives. The Companys robust ESG framework which is aligned with contemporary domestic and global protocols, guidelines and standards is fully integrated with M.P.Birla Groups deep commitment rooted in significant social value creation in addition to economic value of an enterprise while ensuring that all business decisions are aligned with sustainability principles across environmental, social and governance pillars. While the Company has always been mindful of conducting business in a sustainable manner, the implementation of ESG framework conforming to applicable global standards will further strengthen resilience, transform organisation culture and create long term value for all stakeholders.

The Company continued to maintain healthy and cordial relationship with its employees throughout the year. A Committee, comprising of senior officials, regularly reviews the issues related to the employees with a view to ensure immediate redressal of grievances. The Company employed 832 permanent employees as on March 31, 2026.

No complaint was filed during the financial year under the Sexual Harassment of women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

CAUTIONARY STATEMENT

The Management Discussion and Analysis may contain certain statements that might be considered forward looking. These statements are subject to certain risks and uncertainties. Actual results may differ materially from those expressed in the Statement as important factors could influence the Companys operations such as Government policies, local, political and economic development, industrial relations, and risks inherent to the Companys growth and such other factors. Market data and product analysis contained herein has been taken from internal Company reports, Industry & Research publications, but their accuracy and completeness are not guaranteed and their reliability cannot be assured.