1. ECONOMIC OVERVIEW

1.1 Global economy

FY26 was shaped by an uneven global recovery layered over persistent geopolitical stress. Disinflation across most advanced economies allowed central banks to continue easing, but the benefit was partly offset by a sharp re-pricing of industrial commodities and by a materially more restrictive trade environment. The United States implemented tariff action across a wide range of imported goods during the year, including a Section 232 duty of 50% on the copper content of imported semi-finished copper products and copper-intensive derivatives — a category that expressly includes wires, cables, rods and connectors — with effect from 1 August 2025. Country-level tariff rates applicable to Indian exports were subsequently reduced to 18% under an interim India-United States trade understanding announced in February 2026.

The most consequential development for our industry was in metals. Copper rose to an all-time high of US$14,527.50 per tonne on the London Metal Exchange in January 2026, having breached US$11,000, US$12,000, US$13,000 and US$14,000 per tonne in quick succession over the preceding four months, on the back of mine supply disruption, chronic underinvestment in new capacity and a demand impulse from data centre and electrification build-outs. Aluminium touched its highest level since April 2022 in the same month. Across FY26, copper and aluminium prices each rose by an estimated 22-27%, and PVC by approximately 12%.

1.2 Indian economy

India remained the fastest-growing major economy. Real GDP grew 7.7% in FY26, against 7.1% in FY25, on the National Statistical Offices Provisional Estimates released in June 2026 under the revised 2022-23 base year framework. Real Gross Value Added expanded 7.9%, with manufacturing GVA up 10.7% and construction GVA up 7.4% — both directly relevant to demand for wires and cables. Nominal GDP grew 8.9% to ^346.36 lakh crore. Gross fixed capital formation grew 8.2% in real terms, confirming that the investment cycle remained the principal engine of growth.

Inflation was exceptionally benign for most of the year, with headline CPI averaging 1.71% over April-December 2025 — among the lowest readings in the current series — before normalising to 3.40% by March 2026. This allowed the Monetary Policy Committee to reduce the repo rate by a cumulative 100 basis points during FY26, to 5.25% by March 2026, with a neutral stance. Lower policy rates fed through to working capital costs across the manufacturing sector.

Public capital expenditure remained the anchor of the investment cycle. Effective capital expenditure of the Union Government was budgeted at Rs.15.48 lakh crore (4.3% of GDP) for FY26 and has been raised to Rs.17.15 lakh crore (4.4% of GDP) for FY27, with the fiscal deficit budgeted to narrow to 4.3% of GDP. The Economic Survey 2025-26 projects real GDP growth of 6.8-7.2% for Fy27.

2. INDUSTRY STRUCTURE AND DEVELOPMENTS

2.1 The Indian wires and cables industry

The Indian wires and cables (C&W) industry is estimated at approximately Rs.1 lakh crore in organised-sector revenue and has been among the fastest-growing segments within the electrical equipment universe, compounding at roughly 1.5 times real GDP growth over the past decade. FY26 was an exceptional year: industry revenue grew by more than 20%, led by volume, against an expectation of 15-16% formed at the start of the year. The organised segment accounts for an estimated 60-70% of the market, and its share continues to rise as GST formalisation, BIS quality control orders, safety consciousness and channel consolidation progressively squeeze the unorganised tail.

Structurally the industry divides into three pools of roughly comparable size: building wires (last-mile connectivity within homes and commercial premises), LT cables (up to 1.1 kV, for local distribution) and FIT, EHV and specialty cables (11 kV to 400 kV, for transmission and sector-specific applications including railways, defence, solar and data centres). Power transmission cables and building wires together account for approximately half of total demand.

Industry-wide capital expenditure in FY25 and FY26 combined was approximately Rs.8,000-8,500 crore, about 70% higher than the FY22-FY24 average, and capacity utilisation across the organised sector moderated to roughly 75% as new lines commissioned ahead of demand. Independent estimates suggest that capacity additions by new entrants could equal 20-22% of the organised sectors existing capacity by the end of FY27, with incumbents adding a further 10-12% — against expected volume growth of around 10% a year. The Company regards this as the defining competitive question for the industry over the medium term, and has addressed it in Section 4 (Opportunities and Threats) and Section 10 (Risks and Concerns) below.

2.2 Power generation, transmission and distribution

Indias installed power generation capacity reached 532.74 GW as at 31 March 2025, from approximately 475 GW a year earlier — a net addition of close to 58 GW, the largest in the countrys history. Non-fossil capacity reached 283.5 GW, or 53.2% of the total, comfortably ahead of the Nationally Determined Contribution target of 50% by 2030, which was achieved in June 2025, five years early. FY25 alone saw a record 55.3 GW of non-fossil capacity added, including 44.5 GW of solar (roughly double the previous record) and 5.05 GW of wind. India now ranks third globally in installed renewable capacity.

Renewable generation is materially more cable-intensive per megawatt than conventional generation. Cables account for approximately 3-4% of project cost at the generation level and 14-15% at the transmission and distribution level, and a typical solar installation consumes of the order of 50 km of cable per MW. The record renewable build of FY25, and the run- rate implied by the balance of the 500 GW non-fossil target for 2030, therefore represent a durable and quantifiable demand pool for FIT, LT, solar and specialty cables.

On the transmission side, Indias network crossed the 5 lakh kilometre milestone in January 2025, with transformation capacity of approximately 1,407 GVA. 12,139 ckm of transmission lines and 1,13,013 MVA of transformation capacity were added during FY25. The National Electricity Plan (Transmission) envisages more than 1,91,000 km of new lines and 1,270 GVA of transformation capacity at an investment exceeding Rs.9.15 lakh crore through 2031-32, taking inter-regional transfer capacity from 119 GW to 158 GW. Total power-sector investment through 2032 is estimated to exceed Rs.50 lakh crore.

Distribution remains the largest single opportunity for the Companys core product set. The Revamped Distribution Sector Scheme (RDSS), with an outlay of Rs. 3.04 lakh crore, has sanctioned works of approximately Rs. 1.53 lakh crore for loss- reduction infrastructure — the segment that directly consumes FIT and LT cables and covered conductors — and Rs. 1.31 lakh crore for smart metering, covering 20.33 crore meters across 28 States and Union Territories. Physical progress on loss- reduction works stood at roughly 37%, and the schemes implementation deadline has been extended from 31 March 2025 to 31 March 2028, effectively extending the tendering runway by two years. The programme has already delivered measurable results: AT&C losses fell to 15.04% in FY25 from 21.91% in FY21, and the ACS-ARR gap narrowed to Rs. 0.05 per kWh fromRs. 0.59 per kWh, materially improving the credit quality of the Companys State utility customers.

2.3 A note on FY26 power demand

It is relevant to record that FY25 was, paradoxically, a weak year for electricity consumption even as it was a record year for capacity creation. Total generation was approximately 1,847.9 billion units, growth of only about 1% — the slowest in five years — and peak demand met was 245.4 GW, marginally below the FY25 peak, on account of an extended monsoon and a high base. Demand normalised sharply immediately after the year-end: an all-time peak of 255.1 GW was met on 25 April 2025 and April 2025 consumption grew 8.9% year on year, with independent estimates pointing to roughly 5% demand growth in FY27. The Companys own growth in FY25 was therefore driven by market share gain, channel expansion and new product introduction rather than by underlying consumption growth — a distinction management considers important.

2.4 Real estate, infrastructure and otherend-markets

Flousing and commercial construction remain the largest single end-market for building wires. Rising electrification intensity per dwelling — modern homes specify upward of 25 electrical points against 5-10 a generation ago — combined with urbanisation, nuclearisation of households and the growth of organised residential development, is expanding wire consumption faster than floor-space growth alone would suggest. Data centres, electric vehicle charging infrastructure, railways and metro projects, defence and industrial capital expenditure add further specialty demand. An estimated Rs.10-12 lakh crore of investment across these end-markets is expected to support industry demand in Fy27.

2.5 Exports

India remains a small participant in the global cable trade, with exports under FIS 8544 of approximately US$2 billion, placing the country around twentieth globally — but Indian exports have doubled since 2020, the fastest growth among the top twenty exporting nations. The United States, United Kingdom and Japan together account for roughly 57% of Indias exports in this category, and the United States and Europe combined for 45-55%. Two structural shifts are enlarging the opportunity: Chinese producers, who hold the leading global positions, are visibly re-orienting from market share to profitability; and buyers across developed markets are actively diversifying supply under China plus one sourcing policies. Industry export growth of 20-22% was recorded in FY25, and independent forecasts assume a 20% export CAGR through FY29.

3. COMPANY OVERVIEW

V-MARC India Limited is a manufacturer of wires and cables headquartered at Flaridwar, Uttarakhand, listed on the National Stock Exchange (Symbol: VMARCIND) since April 2021. The Company operates three manufacturing facilities on 57,600 square metres of owned land, with installed capacity of 2,12,600 kilometres as at 31 March 2026.

The product portfolio spans FIT cables (up to 33 kV), LT cables, building wires, medium voltage covered conductors, submersible cables, solar cables, communication cables, light duty cables, switchgear and fans. The Company is among a small group of Indian manufacturers to operate in-house electron-beam (e-beam) irradiation capability, which

cross-links cable insulation to deliver superior thermal endurance, current-carrying capacity, service life and low-smoke performance. Its flagship Flexi-TUF eB-FIFFR range is marketed as Indias Safest Wire.

The Company sells through four channels — B2G (State distribution and transmission utilities and government departments), B2B (EPC contractors and OEMs), B2C (a dealer and retail network) and Exports — and is present in more than 25 States and UTs with a network of over 1,200 dealers, over 150 turnkey EPC contractor relationships and more than 850 employees.

4. OPPORTUNITIES AND THREATS

4.1 Opportunities

Structural growth in the addressable market. The C&W industry is expected to expand from approximately Rs. 1 lakh crore towards Rs.1.2 lakh crore by the end of FY27, underpinned by a Rs. 10-12 lakh crore investment pipeline across power, renewables, real estate, railways, data centres and industrial capex, and a transmission plan alone worth over Rs. 9.15 lakh crore to 2031-32.

Formalisation. BIS quality control orders, GST compliance, e-way bill traceability and rising end-customer safety consciousness continue to transfer volume from the unorganised to the organised sector. As a fully compliant, BIS- certified manufacturer with QR-code-based product authentication and end-to-end material traceability, the Company is a direct beneficiary.

Product differentiation through e-beam and MVCC. The Companys e-beam capability, and its ability to supply medium voltage covered conductors together with matched accessories as a single engineered package, address specification-led rather than price-led demand. MVCC penetration in India remains in single digits against near- universal adoption in China and South-East Asia, representing a long adoption runway.

Channel rebalancing towards retail. The Companys B2C dealer channel reached 36% of standalone revenue in FY26.

Retail carries structurally better realisations, materially shorter receivable cycles and lower tender-cycle volatility than institutional business, and its growth improves both the margin and the working capital profile of the enterprise.

Exports. FY26 was the Companys maiden export year, at Rs.62.6 crore. A dedicated export team has been established at the Mumbai office, certification work is under way for United States, British and Australian standards, and participation in six to ten international exhibitions is planned in FY27, with the European Union, United States, Japan and Australia as priority markets.

Operating and financial leverage. With capacity of 2.12 lakh km supporting FY26 revenue of Rs.1,797.3 crore, and a committed programme to take capacity beyond 10 lakh km by FY30, the Company has the physical platform to grow revenue several-fold from an already-installed and progressively depreciating asset base.

4.2 Threats

Industry capacity addition and pricing discipline. The most material threat is the volume of capacity being commissioned across the industry, including by large, well-capitalised entrants from adjacent sectors. If aggregate capacity grows at roughly twice the rate of volume, price competition will intensify and industry margins will come under pressure. The Companys response is to compete on specification, product differentiation and owned distribution rather than on price.

Commodity price volatility. Copper, aluminium and polymers dominate the Companys input cost. A rapid rise compresses gross margin where pass-through lags; a rapid fall reverses inventory gains and can coincide with weakening price discipline. FY26 illustrated the first of these: input costs rose 22-27% and the Companys gross margin compressed 168 basis points.

Institutional receivable and tender risk. Government and utility business carries longer collection cycles, retention money and tender-timing volatility. The Company mitigates this through price-variation clauses, retention capped at contractual norms, and deliberate rebalancing towards faster-cycle B2B and B2C channels.

Trade policy. United States Section 232 duties on copper content and the evolving India-United States tariff framework introduce uncertainty into the export build-out, notwithstanding the reduction in the country rate to 18% in February 2026.

Demand cyclicality. FY26 national power demand growth of approximately 1% is a reminder that end-consumption can decouple from capacity creation. A prolonged slowdown in government capital expenditure or real estate launches would slow industry volume.

5. SEGMENT-WISE/PRODUCT-WISE PERFORMANCE

The Company operates in a single reportable business segment — wires and cables — in terms of Accounting Standard 17 Segment Reporting notified under the Companies (Accounting Standards) Rules, 2021. Product-wise and channel-wise performance is set out below for the information of shareholders.

5.1 Product-wise revenue

Product line	FY26(Rs. Mn)	FY25 (Rs.Mn)	YoY growth	FY26 mix
HT Cables	8,467	4,634	+82.7%	47%
LT Cables	2,704	2,591	+4.4%	15%
Building Wires & Industrial Cables	6,800	1,824	+272.8%	38%
Total	17,970	9,049	+98.6%	100%

Note: Product mix is on a standalone basis. Revenue of ^3 Mn from the subsidiary is not included in the FY26 total above.

HT Cables grew 82.7% to T846.7 crore and remain the Companys largest product line at 47% of revenue, driven by State distribution utility tendering under RDSS and by transmission-linked demand. Over three years this line has compounded at 116.3% a year.

LT Cables grew 4.4% to T270.4 crore. Growth here was deliberately moderated: with capacity finite during the year, the Company prioritised allocation towards higher-realisation HT and building wire volumes. LT cables now represent 15% of revenue against 29% in FY25 — a mix shift, not a demand failure.

Building Wires and Industrial Cables grew 272.8% to T680.0 crore, the standout performance of the year, and now contribute 38% of revenue against 20% in FY25.This reflects the scale-up of the dealer network, the market response to the Flexi-TUF eB-H FFR range, and the Mumbai Indians brand association supporting retail pull.

5.2 Channel-wise revenue (standalone)

Channel	FY26 share
B2B\u2014 EPC contractors and OEMs	36%
B2C \u2014 dealer and retail network	36%
B2G \u2014 government and utility sales	25%
Exports	3%

The most significant structural development of FY26 was the emergence of B2C as an equal-weighted channel alongside B2B, and the reduction of government dependence to roughly a quarter of revenue. Exports contributed Rs. 62.6 crore in their maiden year.

6. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The financial statements have been prepared in accordance with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2021 read with Section 133 of the Companies Act, 2013, and presented in the format prescribed under Division I of Schedule III to the Act. All figures below are on a consolidated basis unless stated otherwise.

6.1 Statement of Profit and Loss

Particulars (Rs. Mn)	FY26	FY25	YoY
Revenue from Operations	17,973.1	9,048.8	+98.6%
Cost of Goods Sold	14,129.8	6,961.8	+103.0%
Gross Profit	3,843.3	2,086.9	+84.2%
Gross Margin	21.4%	23.1%	-168 bps
Employee Benefits Expense	693.2	379.9	+82.5%
Other Expenses	1,141.8	735.7	+55.2%
EBITDA	2,008.3	971.4	+106.8%
EBITDA Margin	11.2%	10.7%	+44 bps
Depreciation & Amortisation	245.4	181.6	+35.1%
Otherlncome	31.7	13.7	+131.4%
Finance Costs	454.3	306.3	+48.3%
Profit Before Tax	1,340.3	497.1	+169.6%
Tax Expense	339.8	136.2	+149.5%
Profit AfterTax	1,000.5	360.9	+177.2%
PAT Margin	5.6%	4.0%	+158 bps

Revenue. Revenue from operations grew 98.6% to Rs. 1,797.3 crore; total income including other income was Rs. 1,800.5 crore. Growth was broad-based, led by Building Wires and Industrial Cables and by HT Cables, supported by accelerating dealer network activation and a maiden export contribution. The second half was materially stronger than the first, in line with the industrys normal seasonality: H2 FY26 revenue of Rs.1,105.8 crore was 59.9% above HI FY26 and 97.6% above H2 FY25.

Gross margin. Gross margin compressed 168 basis points to 21.4%. Two factors account for this. First, copper and aluminium input costs rose an estimated 22-27% during the year, and pass-through to institutional customers necessarily lags. Second, purchases of stock-in-trade rose to Rs. 170.0 crore from Rs. 7.2 crore as the Company used a traded book to service demand that exceeded its own installed capacity during the year — a decision that protected customer relationships and market share at the cost of a lower blended gross margin. Management regards this as the correct trade-off in a year of capacity constraint, and expects the traded proportion to decline as the capacity programme delivers.

Operating leverage. Employee benefits expense fell to 3.9% of revenue from 4.2%, and other expenses to 6.4% from 8.1% — a combined 212 basis point reduction in the operating cost ratio. This more than offset the 168 basis point gross margin compression, delivering a 44 basis point expansion in EBITDA margin to 11.2% and a 106.8% increase in absolute EBITDA to Rs. 200.8 crore. This is the clearest evidence in the years accounts that the fixed cost base built out in FY24and FY25 is now being properly utilised.

Below EBITDA. Depreciation rose 35.1% to Rs. 24.5 crore, well below revenue growth, as the enlarged asset base was spread over a much larger revenue pool (1.4% of revenue against 2.0%). Finance costs rose 48.3% to Rs. 45.4 crore — half the rate of revenue growth — reflecting both improved working capital efficiency and the 100 basis point reduction in the policy repo rate during the year; finance costs fell to 2.5% of revenue from 3.4%. The effective tax rate was 25.4% against 27.4%. Profit after tax rose 177.2% to Rs. 100.1 crore, with PAT margin expanding 158 basis points to 5.6%. Earnings per share for FY26, determined in accordance with Accounting Standard 20 Earnings Per Share, is set out in the financial statements forming part of this Annual Report.

6.2 Balance Sheet

Particulars (Rs. Mn)	FY26	FY25
Shareholders Funds	2,895.0	1,894.5
Long-term borrowings	1,069.4	729.1
Short-term borrowings	1,067.2	1,020.7
Trade payables	4,333.8	1,969.0
Total Equity & Liabilities	10,246.7	6,457.7
Property, Plant & Equipment	1,948.8	1,385.8
Capital Work-in-Progress	363.1	242.4
Inventories	2,661.3	1,393.3
Trade receivables	4,200.0	2,844.3
Cash and bank balances	88.4	15.5

Net worth increased 52.8% to Rs.289.5 crore, entirely through retained earnings; there was no equity issuance during FY26. Total borrowings rose 22.1% to Rs.213.7 crore against revenue growth of 98.6%, taking the debt-equity ratio down to0.74x from 0.92x and total debt to EBITDA to 1.06x from 1.80x.The balance sheet financed a near-doubling of the business while deleveraging.

6.3 Working capital

Days (on revenue)	FY26	FY25	FY24
Debtor days	85	115	93
Inventory days	54	56	81
Payable days	88	79	100
Net working capital cycle	51	92	75

The net working capital cycle compressed by 41 days to 51 days. The dominant driver was a 30-day reduction in debtor days to 85, achieved through the channel shift towards faster-paying B2C and B2B business, tighter collection discipline in the institutional book and improved liquidity at State utility customers following the narrowing of the ACS-ARR gap under RDSS. Inventory days improved marginally to 54 despite a near-doubling of scale, and payable days extended modestly to 88.

6.4 Cash flow and capital expenditure

Net cash generated from operating activities was Rs.109.2 crore, against Rs.22.5 crore in FY25 — an increase of 384% and the strongest cash performance in the Companys history, reflecting the combination of higher operating profit and the compression of the working capital cycle. Net cash used in investing activities was Rs.96.7 crore (Fy25: Rs.61.0 crore), reflecting capacity expansion. Gross additions to property, plant and equipment and capital work-in-progress aggregated approximately Rs.92.9 crore during the year. Net cash used in financing activities was Rs.5.2 crore against an inflow of ^39.8 crore in FY25 — that is, FY26 growth was funded almost entirely from internal accruals. Closing cash and bank balances stood at Rs.8.8 crore.

6.5 Capacity and operations

Installed capacity increased 25.8% to 2,12,600 kilometres from 1,69,020 km, and has compounded at 50% a year over three years from 63,000 km in FY23. During the year the Company commissioned a second electron-beam irradiation line and launched Indias first e-beam submersible cable for agricultural applications.

7. KEY FINANCIAL RATIOS

Disclosure pursuant to Schedule V(B)(1) of the SEBI (LODR) Regulations, 2015. Consolidated basis. Debtors Turnover and Inventory Turnover are computed on the average of opening and closing balances, with Inventory Turnover taken on cost of goods sold; all other ratios are computed on closing balance sheet figures. The debtor, inventory and payable days set out in Section 6.3 above are computed on closing balances and are therefore not the direct reciprocals of the turnover ratios below.

6.3 Working capital

Ratio	FY26	FY25	Change
Debtors Turnover (times)	5.10	4.23	+20.8%
Inventory Turnover (times)	6.97	5.25	+32.8%
Interest Coverage Ratio (times)	3.88	2.58	+50.5%
Current Ratio (times)	1.24	1.23	+0.6%
Debt-Equity Ratio (times)	0.74	0.92	-20.1%
Operating Profit Margin (EBITDA,%)	11.2%	10.7%	+4.1%
Net Profit Margin (%)	5.6%	4.0%	+39.6%
Return on Net Worth (%)	42.0%	24.0%	+71.33%
Return on Capital Employed (%)	45.0%	31.0%	+47.77%
Total Debt/EBITDA (times)	1.06	1.80	-40.9%

Explanations for changes of 25% or more

Inventory Turnover — improved from 5.25x to 6.97x (+32.8%). Cost of goods sold grew 103.0% while average inventory grew 52.8%, meaning the Company turned its inventory materially faster on a much larger base. The improvement reflects higher capacity utilisation following commissioning of the second electron-beam line, a mix shift towards fast-moving building wires sold through the dealer channel, and a larger traded-goods book which converts without carrying manufacturing inventory. Inventory days on closing balances were held at 54 despite a near-doubling of scale.

Interest Coverage Ratio — improved from 2.58x to 3.88x (+50.5%). EBIT grew 123.2% while finance costs grew only 48.3%. Borrowings grew far more slowly than revenue because the working capital cycle compressed by 41 days and because growth was funded substantially from operating cash flow; the 100 basis point reduction in the repo rate during FY 26 further reduced the average cost of borrowing.

Net Profit Margin — improved from 4.0% to 5.6% (+39.6%). The 158 basis point expansion reflects a 44 basis point improvement in EBITDA margin from operating leverage on employee and overhead costs, a 64 basis point reduction in depreciation as a percentage of revenue, an 86 basis point reduction in finance costs as a percentage of revenue, and a 205 basis point reduction in the effective tax rate — partly offset by 168 basis points of gross margin compression from commodity inflation and a higher traded-goods mix.

Return on Net Worth — improved from 24.0% to 42.0% (+71.33%). Profit aftertax grew 177.2% while net worth grew 52.8%. There was no equity dilution during the year; the entire increase in net worth arose from retained earnings. The improvement therefore reflects a genuine step-up in the earning power of the existing capital base, driven by higher asset turnover (revenue to total assets improved from 1.40xto 1.75x)and by margin expansion.

Return on Capital Employed — improved from 31.0% to 45.0% (+47.77%). EBIT grew 123.2% against a 38.1% increase in capital employed, as the revenue base nearly doubled on an asset platform largely commissioned in prior years and on a substantially shorter working capital cycle.

Total Debt / EBITDA — improved from 1.80x to 1.06x (-40.9%). EBITDA grew 106.8% while total borrowings grew 22.1%, as growth was funded predominantly from internally generated cash rather than incremental leverage. Cash generated from operating activities of Rs.109.2 crore covered the full years capital expenditure.

Other movements — below the 25% threshold, explained for completeness

Debtors Turnover — improved from 4.23x to 5.10x (+20.8%). Average trade receivables grew 64.5% against revenue growth of 98.6%, reducing debtor days on closing balances from 115 to 85. The improvement is attributable to the shift in revenue mix towards the B2C dealer channel and B2B EPC business, which carry materially shorter collection

cycles than government tenders; to tightened credit control and collection follow-up in the institutional book; and to improved payment behaviour by State distribution utilities as their financial position strengthened under RDSS.

Debt-Equity Ratio — improved from 0.92x to 0.74x (-20.1%). Net worth grew 52.8% entirely through retained earnings, with no equity issued during the year, while total borrowings grew 22.1%.

Changes in the Current Ratio and Operating Profit Margin were immaterial.

8. OUTLOOK

The Company enters FY27 with a materially stronger platform than it held twelve months ago: a doubled revenue base, an equal-weighted four-channel distribution model, capacity of 2.12 lakh km, a net working capital cycle of 51 days and a debt- equity ratio of 0.74x.

Revenue. The Company targets revenue growth in excess of 40% in FY27, broad-based across B2G, B2B, B2C and export channels, supported by expanded production capacity, deeper dealer activation and recent product introductions.

Margin. The Company targets an EBITDA margin of 11% or better in FY27, broadly in line with the 11.2% delivered in FY26. The margin profile is expected to be supported by operating leverage on a larger scale base, a richer mix as B2C and exports gain share, and progressive backward integration in compounds and conductors — while recognising that commodity passthrough timing and industry-wide capacity addition are genuine variables.

Capacity and capital expenditure. The Companys long-term objective is to scale installed capacity to over 10 lakh kilometres by FY30 — approximately five times the current installed base — supported by an incremental capital expenditure programme of approximately Rs.500 crore through FY30.

Exports. Following the maiden export contribution of Rs.62.6 crore in FY26, the Company will actively pursue expansion into new geographies, with Europe, the United States, Japan and Australia as priority markets, supported by the dedicated export team established at the Mumbai office and participation in six to ten international cable and wire exhibitions during FY27.

The macroeconomic and policy backdrop is supportive: Union capital expenditure rising to Rs.17.15 lakh crore in FY27, a Rs.9.15 lakh crore transmission plan running to 2031-32, RDSS extended to March 2028, a residual 216 GW of non-fossil capacity to be built by 2030, and an anticipated recovery in electricity demand growth to approximately 5% in FY27 after the weather-affected FY26.

9. RISKSANDCONCERNS

Competitive intensity and capacity overhang. Aggregate industry capacity is being added at roughly twice the expected rate of volume growth, including by large new entrants from adjacent sectors. Mitigation: the Company competes on specification rather than price — e-beam cross-linked products, MVCC systems supplied with matched accessories under single-point accountability, and an owned rather than rented distribution network. Backward integration in compounds and conductors is being progressed to protect unit economics.

Raw material price volatility. Copper, aluminium and polymers dominate input cost and are subject to sharp global price movement, as FY26 demonstrated. Mitigation: price-variation clauses in institutional contracts, disciplined inventory management (inventory days held at 54 despite a doubling of scale), a structured product basket spanning high, medium and low margin categories, and periodic price revision in the retail channel.

Receivable and counterparty risk. Institutional business carries extended collection cycles and retention money. Mitigation: deliberate rebalancing towards B2C and B2B, capped retention, and improving counterparty credit quality among State utilities under RDSS. Debtor days improved 30 days during FY26.

Execution risk on the capacity programme. A Rs.500 crore capital expenditure programme to FY30 carries commissioning, timing and utilisation risk. Mitigation: staged commissioning — fast-cycle wire lines ahead of long-lead HV assets — land already secured at Haridwar, and redundancy across e-beam and CCV lines.

Financing and interest rate risk. Growth of this order requires committed working capital and term facilities. Mitigation: debt-equity held at 0.74x, total debt to EBITDA at 1.06x, interest coverage (EBIT basis) at 3.88x, and FY26 growth funded almost entirely from internal accruals.

Regulatory, trade policy and quality risk. BIS quality control orders, tender qualification norms and export certification requirements are evolving; United States Section 232 duties affect copper-content exports. Mitigation: full BIS compliance, active pursuit of U L, BS and Australian certifications, and geographic diversification of the export pipeline.

Concentration risk. HT cables represent 47% of revenue and government-linked business approximately 25%. Mitigation: the FY25 channel and product rebalancing has already materially reduced concentration, and the direction of travel is towards further diversification.

10. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company maintains an internal control framework commensurate with the size, scale and complexity of its operations, designed to provide reasonable assurance regarding the safeguarding of assets, the prevention and detection of fraud and error, the accuracy and completeness of accounting records, the reliability of financial reporting and compliance with applicable laws and regulations.

The framework comprises documented policies and standard operating procedures across procurement, production, quality assurance, sales, credit control, treasury and human resources; delegation of authority with defined approval matrices; segregation of duties across transaction initiation, authorisation and recording; and an integrated ERP environment through which transactions are recorded and controls are systemically enforced.

Quality control is embedded in the operating process. The Company maintains in-house testing laboratories and manufactures to BIS and applicable international standards, and has implemented QR-code-based product authentication and end-to-end material traceability, enabling any despatched product to be traced to its production batch and raw material lot.

An independent Internal Auditor reviews the adequacy and operating effectiveness of internal controls in accordance with an annual risk-based audit plan approved by the Audit Committee. Internal audit observations, management responses and the status of remedial action are reviewed by the Audit Committee, which comprises a majority of Independent Directors and meets at least once each quarter. The Statutory Auditors have reported on the adequacy and operating effectiveness of the Companys internal financial controls with reference to the financial statements. Management is strengthening the framework further through the formalisation of standard operating procedures across additional functions and an expanded internal audit scope.

The Board is of the opinion that the internal control systems in place are adequate and were operating effectively during the year under review.

11. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES AND INDUSTRIAL RELATIONS

The Company employed over 850 people as at 31 March 2026. Employee benefits expense for the year was ^69.3 crore against ^38.0 crore in FY25, an increase of 82.5% — below revenue growth of 98.6%, with employee cost falling to 3.9% of revenue from 4.2%. The increase reflects both annual compensation revision and recruitment across production, quality, institutional sales, retail sales, exports and finance to support the scale-up.

The Companys leadership team combines long-tenured internal talent with senior professionals recruited from established industry participants including Havells, ABB, Apar Industries, RR Kabel, Finolex, HPL and C&S Electric. A dedicated export team was established at the Mumbai office during the year, and the retail organisation supporting the dealer channel was materially expanded.

The Company continues to invest in technical training, on-the-job skill development and safety training, and maintains structured programmes for electricians, dealers and consultants as part of its channel development effort.

Industrial relations remained cordial throughout the year, and there was no loss of man-days on account of any industrial dispute. The Company is committed to a safe, respectful and inclusive workplace and has in place a policy on prevention of sexual harassment at the workplace in compliance with applicable law.

12. ENVIRONMENT, HEALTH,SAFETYANDSUSTAINABILITY

Sustainability is embedded in the Companys operating theme, Powering Progress Sustainably. Initiatives during the year included continued reduction of the operational carbon footprint, adoption of eco-friendly manufacturing practices, reinforcement of Environment, Health and Safety protocols across all facilities, and the extension of green technology into the product pipeline. The Companys e-beam halogen-free flame-retard ant (H FFR) range is central to this effort: these products do not emit toxic halogenated smoke in a fire, withstand temperatures to 150°C and are engineered for extended service life, materially reducing both life-cycle material consumption and fire risk to occupants.

13. CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations, plans or predictions may constitute forward-looking statements within the meaning of applicable securities laws and regulations. These statements are based on certain assumptions and expectations of future events over which

Company exercises no control. Actual results could differ materially from those expressed or implied, on account of factors including but not limited to changes in economic conditions and government policy affecting demand and supply, movements in raw material prices, foreign exchange rates and interest rates, competitive intensity and industry capacity addition, changes in tax laws, litigation, labour relations, and other incidental factors. The Company assumes no obligation to publicly amend, modify or revise any forward-looking statement on the basis of any subsequent development, information or event.

For and on behalf of the Board of Directors

Vikas Garg

Chairman & Managing Director

V-MARC India Limited