Vdeal System Ltd Management Discussions

The electrical panel like Medium Voltage (MV) and Low Voltage (LV) panel market in India is experiencing significant growth, driven by increasing demand for efficient and reliable power distribution solutions, MV panels (3.3-36 kV, 630-1250 A) and LV panels (up to 1000 V, 6300 A) are crucial components in industrial, commercial, and infrastructure projects. The sector is also witnessing a surge in demand for automation solutions, including Customized Programmable Logic Controllers (PLCs), Supervisory Control and Data Acquisition (SCADA) systems, Variable Frequency Drives (VFDs), Human Machine Interfaces (HMIs), Distributed Control Systems (DCS). The growing demand for MV and LV panels and automation solutions presents opportunities for manufacturers, system integrators, and solution providers to innovate and expand their offerings, catering to the evolving needs of industries in India.

The Medium Voltage (MV) and Low Voltage (LV) panel market in India is growing rapidly due to increasing demand for efficient and reliable power distribution solutions. Heres an overview of the industry:

Key Trends:

?€? Increasing Demand for Renewable Energy: Indias focus on renewable energy, particularly solar power, is driving the demand for MV and LV panels. The countrys solar module manufacturing capacity has reached 91.6 GW, and the government has set ambitious targets for renewable energy adoption.

?€? Smart Grid Initiatives: Indias Smart Grid Mission is deploying loT enabled LV panels to manage rooftop solar intermittency across urban centres, enhancing the efficiency and reliability of power distribution.

?€? Technological Advancements: The market is witnessing innovations in panel design, materials, and energy management systems. For instance, Siemens SIVACON S8 panel boards incorporate advanced energy management modules with loT sensors to monitor real time fluctuations from solar arrays.

?€? Growing Urbanization and Infrastructure Development: Indias expanding manufacturing sector and urban energy demand are pushing procurement toward cost-effective, modular designs. The countrys "Smart Cities Mission" is targeting 100 cities with modern infrastructure, driving the demand for advanced electrical distribution systems.

Market Drivers:

?€? Government Initiatives: The Indian government has launched several initiatives to promote domestic manufacturing, including the Production Linked Incentive (PLI) Scheme for High Efficiency Solar PV Modules and the Domestic Content Requirement (DCR) under various subsidy linked schemes.

?€? Increasing Electricity Demand: Indias growing economy and population are driving up electricity demand, necessitating efficient and reliable power distribution solutions.

?€? Focus on Energy Efficiency: The government is promoting energy-efficient solutions, includingthe use of LED lighting and energy-efficient appliances, which is expected to drive the demand for MV and LV panels.

India continues to be the fastest-growing major economy, with GDP growth of 6.2%-6,5% projected for FY 2024-25 and FY 2025-26 (IMF). Growth is supported by strong domestic demand, government led infrastructure investment, and recovery in agriculture. Inflation eased significantly, with CPI averaging 4.6% in FY 2024-25, down from 5.4% in FY 2023-24. WPI also declined, reflecting softer fuel and food prices. The RBI cut the repo rate to 6% in early 2025, supporting liquidity and consumption.

FIigh-frequency indicators such as GST collections (T22.09 lakh crore, up 9.4%} confirm robust economic activity. Large-scale expansion of highways and railways further strengthened connectivity and employment generation. Overall, India remains a key growth engine of the global economy, with continued focus required on reforms in skilling, MSME promotion, and energy security to sustain long term momentum.

MV Panels (3.3-36 kV, 630-1250 A), LV Panels (up to 1000 V, 6300 A)

The Indian market for Medium Voltage (MV) and Low Voltage (LV) panels is expected to experience significant growth over the next five years, driven by increasing demand for efficient and reliable power distribution solutions.

Market Projections:

?€? The global photovoltaic (PV) mounting system market, which includes MV and LV panels, is projected to grow from $33.9 million in 2025 to $166.6 million by 2035, reflecting a Compound Annual Growth Rate (CAGR) of 17.46%.

?€? Indias solar module manufacturing capacity has reached 100 GW, with expectations to rise to 190 GW by March 2027.

?€? The countrys solar power capacity addition has been substantial, with 18 GW added in the first half of 2025, and rooftop solar installations reaching 2.8 GW in the same period, marking a 155% year-over-year increase.

Automation Solutions: Customized PLC, SCADA, VFD, HMI & Industrial Automation:

The Indian market for automation solutions, including Customized PLC, SCADA, VFD, and HMI, is expected to experience significant growth over the next five years, driven by increasing demand for efficient and reliable automation solutions across industries.

Key Growth Drivers:

?€? Government Initiatives: Promoting smart cities and sustainable infrastructure, creating demand

for automation solutions ^

?€? Industrialization and Infrastructure Development: Growing demand for automation in manufacturing, automotive, and aerospace sectors

?€? Technological Advancements: Advancements in loT, Al, and machine learning driving adoption of automation solutions

Projected Growth Figures:

?€? Industrial Automation Software Market: Expected to grow at a CAGR of 8.4% over the next five years

?€? Modular Automation Market: Projected to reach $22.08 billion by 2029, growing at a CAGR of 11.5%

?€? Assembly Automation Market: Expected to reach $64.9 billion by 2032, growing at a CAGR of 9.1%

?€? Building Automation System Market: Expected to grow at a CAGR of more than 12% from 2024 to 2029.

Vdeal System Limited (the Company) is a leading provider of industrial automation, electrical panels, lloT solutions, and power distribution systems with a strong footprint across India. Since inception, the Company has specialized in delivering end-to-end solutions that enhance operational efficiency, energy management, and digital transformation for industries.

Our expertise spans across low and medium voltage electrical panels, smart automation systems, lloT enabled monitoring platforms, energy efficient distribution boards, EPC projects, and turnkey industrial solutions. We serve diverse sectors including manufacturing, metals, mining, cement, power, oil & gas, infrastructure, and process industries.

Backed by a hub and spoke operational model, our projects are supported by state-of-the-art manufacturing facilities, advanced design capabilities, and a skilled workforce. With operations anchored in Bhubaneswar, Odisha and expansion into Mumbai, West Bengal, and Jharkhand, we ensure seamless support and delivery across industrial hubs in India.

Over the years, we have built enduring partnerships with private and public enterprises, working closely with OEMs, EPC contractors, and global technology providers. Our solutions have powered factories, smart plants, power distribution networks, and critical infrastructure projects, reinforcing our reputation for reliability, safety, and innovation.

Vdeals national presence is strengthened by a wide service network, long-term client relationships, and a commitment to sustainable technology adoption. By integrating automation with digital intelligence, we help industries achieve reduced downtime, optimized energy usage, and future-ready operations.

With a clear focus on engineering excellence, sustainability, and innovation, Vdeal System Limited continues to shape the future of industrial automation and power distribution, driving Indias progress toward Industry 4.0 and clean energy transformation.

Vdeal System Limited operates through diversified yet interconnected business verticals, designed to provide end-to-end automation, power, and digital solutions across critical industries. Each vertical complements the others, creating operational synergy, technological integration, and maximum stakeholder value.

Electrical Panels and Power Distribution

We design and manufacture Low Voltage (LV) and Medium Voltage (MV) panels, switchboards, and distribution systems that ensure reliable, safe, and efficient power supply. Complying with IEC and IS standards, our panels cater to industrial plants, utilities, infrastructure, and commercial hubs, with modular designs and customizable features for future scalability.

Industrial Automation and Control Systems

Our automation solutions include PLC, SCADA, DCS, and relay based systems for process control, plant automation, and smart manufacturing. With advanced control, monitoring, and energy management platforms, we enable industries to achieve operational efficiency, reduced downtime, and predictive maintenance.

lloT and Smart Factory Solutions

Through our lloT platforms and remote monitoring systems, we empower industries with real-time data insights, Al-driven analytics, and cloud enabled dashboards. These solutions support predictive asset management, digital twins, and Industry 4.0 adoption, driving productivity and cost optimization.

EPC and Project Execution

Leveraging our engineering expertise and strong execution capabilities, we undertake EPC projects in industrial automation, power infrastructure, renewable integration, and smart grid systems. From design to commissioning, we provide turnkey solutions that ensure quality, safety, and timely delivery.

Sustainable Energy and Green Initiatives

Aligned with Indias clean energy vision, we deliver energy efficient distribution systems, renewable integration, and eco-friendly automation solutions. Our commitment extends to sustainable manufacturing practices, reduced carbon footprint, and long-term environmental stewardship.

Indias GDP growth in FY 2025-26 is projected at around 6.5%, supported by continued investments in infrastructure, manufacturing, energy, and digital transformation. Despite global economic headwinds such as inflation, trade challenges, and cautious capital flows, strong government focus on skill development, employment generation, and R&D is expected to drive industrial growth.

Vdeal System Limited is strategically positioned to capitalize on these opportunities by expanding its automation and power distribution footprint across key industrial sectors. The Company will focus on:

?€? Strengthening product portfolio in LV/MV panels, automation systems, and lloT-enabled solution^^^^^^^

?€? Enhancing EPC project execution capabilities to support industrial plants, utilities, and infrastructure developments.

?€? Driving digital adoption through remote monitoring, predictive maintenance, and smart factory platforms.

?€? Sustainability initiatives including energy-efficient designs, eco-friendly manufacturing practices, and smart power management for reduced carbon footprint.

With a robust business model, strong industry partnerships, and a focus on innovation and sustainability, Vdeal System Limited is well-positioned to maintain growth momentum, strengthen market leadership, and deliver long-term value to shareholders.

Vdeal System Limited is well-positioned to leverage the rapid growth in Indias industrial automation and power infrastructure sector:

?€? Expansion of smart manufacturing and Industry 4.0 initiatives, driving demand for automation, lloT platforms, and energy efficient systems.

?€? Growing investments in infrastructure, renewable energy, and power distribution networks, creating opportunities for LV/MV panels and EPC projects.

?€? Rising adoption of lloT-based monitoring, predictive maintenance, and digital twin solutions across industries.

?€? Increasing demand for customized automation solutions in steel, cement, mining, and process industries.

?€? Government focus on sustainability, clean energy, and make in India, boosting opportunities for green manufacturing and smart power management.

Through these emerging opportunities, Vdeal System Limited is positioned to accelerate growth, enhance market leadership, and deliver integrated automation and power solutions for a sustainable future.

The company operates in a dynamic environment where certain external factors could impact

performance:

?€? Geopolitical tensions and global supply chain disruptions affecting availability and cost of raw materials, electronic components, and semiconductors.

?€? Dependence on industrial capex cycles slowdown in manufacturing, power, or infrastructure sectors may reduce project demand.

?€? Intense competition from Large multinational automation companies and emerging tech driven entrants.

?€? Regulatory challenges and compliance requirements related to safety, energy efficiency, and sustainability standards.

?€? Rapid technological advancements requiringcontinuous innovation and R&D investments to stay competitive.

Despite these risks, Vdeal System remains resilient through strong backward integration, diversified

offerings, and a customer centric approach to mitigate uncertainties.

Vdeal System Limited operates in a competitive and evolving industrial ecosystem. Key risks that may influence performance include:

?€? Operational Risk: Project execution delays arising from supply chain disruptions, equipment breakdowns, or unplanned downtime.

?€? Regulatory Risk: Changes in safety standards, energy efficiency norms, and compliance with environmental and electrical regulations.

?€? Cost Volatility: Fluctuations in raw material, semiconductor, copper, and aluminium prices impacting manufacturing costs.

?€? Manpower Dependence: Availability of skilled engineers and maintaining industrial harmony for specialized automation and EPC projects.

?€? Technology Risk: Failure to keep pace with rapid advancements in automation, lloT, and digital solutions could affect competitiveness.

Through robust planning, continuous innovation, skill development, and strong compliance practices, Vdeal System Limited actively mitigates these risks while ensuring sustainable growth and long-term stakeholder value.

Vdeal System Limited adopts a proactive and structured approach to risk management, ensuring operational resilience and sustainable growth. Key mitigation measures include:

?€? Operational Continuity: Backup systems, preventive maintenance, and advanced monitoring tools to minimize downtime and project delays.

?€? Regulatory Compliance: A dedicated compliance and audit team closely monitors changes in safety, energy, and environmental standards, ensuring full adherence to ISO 9001:2015 and IEC norms.

?€? Diversified Market Presence: Serving multiple industries such as steel, cement, power, mining, and infrastructure to reduce sectoral dependence and stabilize revenues.

?€? Cost Management: Long-term vendor partnerships, bulk procurement of copper, aluminium, and components, and smart sourcing strategies to manage input cost volatility.

?€? Technology Advancement: Continuous investment in automation, lloT platforms, ERP integration, and smart grid solutions to stay ahead of industry trends.

?€? Workforce Development: Regular skill-building programs, technical training, and employee engagement initiatives to ensure a skilled and motivated workforce.

?€? Customer-Centric Innovation: Offering tailored automation and power solutions that differentiate VDEAL in a competitive market

?€? Global and Sectoral Monitoring: Tracking global supply chain risks and exploring opportunities in renewable integration, EPC projects, and lloT solutions to diversify beyond core offerings.

?€? Execution Excellence: Focus on timely project delivery, operational efficiency, and cost optimization to maintain profitability and stakeholder trust.

Vdeal System Limited has established a robust internal control framework to ensure transparency, compliance, and operational efficiency. The system is designed to safeguard assets, ensure reliable reporting, and promote good governance. Key features include:

?€? Well-documented Policies & Delegation: Clear procedures and defined authority levels across financial and operational functions,

?€? Integrated IT & ERP Systems: Real-time accounting, monitoring, and consolidated reporting for effective decision-making.

?€? Comprehensive Audit Mechanism: Regular internal audits by both independentfirms and the in- house audit team, supported by external statutory audits.

?€? Strong Oversight: The Audit Committee and management regularly review internal controls, ensuring accountability.

?€? Regulatory & Ethical Compliance: Proactive align ment with evolving regulations and promotion

of ethical business practices.

?€? Confirmed Effectiveness: Internal and statutory auditors have validated the adequacy and effectiveness of financial controls for FY 2024-25.

The net revenue from operations increased by ^735.43 Lakhs, rising from ? 2,622.48 Lakhs in FY 2023-

o/i 3= n ni t im, cv ono/i or;

This growth underscores the Companys robust performance over the past year. Earnings before interest, depreciation, tax, and amortization (EBITDA) registered a significant increase, rising to? 3,390*05 Lakhs in FY 2024-25 from ? 2,645,20 Lakhs in FY 2023-24. This improvement in EBITDA reflects strengthened operational efficiency and enhanced profitability.

Profit before tax climbed to Rs.533.44 lakhs, compared to Rs.426.35 lakhs in the previous year, demonstrating the companys ability to manage costs and improve margins, ^

Details of significant financial ratios along with explanation thereof are as under:

Particulars	2024-25		2023-24		Change in Excess of 25%
Current Ratio	2.15		1.41		NA
Debt Equity Ratio	0.41		1.49		Due to increase in shareholders\u2019 funds
Debt Service Coverage Ratio (DSCR)	1.97		1.58		Due to foreclosure of few loans before repayment schedule
Debtors Turnover Ratio	2.09		2.40		Due to received in sales as well as proper realisation of the debtors.
Net Profit Margin (%)	0.12		0.12		NA
Return on Equity (ROE) {%)	0.16		0.50		Due to increase in shareholders\u2019 funds
Payables Turnover Ratio	4.20		2.68		Increase purchase as well as increase in creditor
Return on Capital Employed (%)	0.18		0.33		Due to increase in shareholders\u2019funds
Net Capital Turnover Ratio		2.15		6.04		Due to proper utilization of
						working capital

Vdeal System Limited firmly believes that its employees are its most valuable assets and the driving force behind its growth. The Company strives to provide a safe, conducive, and progressive workplace, aligning with best industry standards. To ensure the right talent is acquired and retained, Vdeal System continuously strengthens and upgrades its hiring processes, training, and employee engagement initiatives.

As a provider of industrial automation, electrical panels, lloT solutions, and power distribution systems, our workforce plays a pivotal role in delivering excellence to clients. The Company has adopted employeecentric practices designed to attract, develop, and retain talent in a competitive market while fostering a culture of innovation, collaboration, and continuous improvement.

As on March 31,2025, Vdeal System Limited had a workforce of 68 employees on its rolls.