Yash Highvoltage Ltd Management Discussions

Business segments review

Yash Highvoltage Ltd. operates across specialised transformer bushing categories that serve generation, transmission, distribution and industrial power applications. The Companys product portfolio is designed to support reliability, insulation efficiency and lifecycle replacement requirements across power infrastructure systems globally, adhering to major international design and manufacturing standards. The business is organised around the following key categories:

OIP CONDENSER BUSHINGS

The Company manufactures Oil-Impregnated Paper condenser bushings across a range of voltage and current ratings for indoor and outdoor transformer applications. These bushings to remain relevant for established power infrastructure systems and replacement demand.

RIP/RIS CONDENSER BUSHINGS

Yashs RIP & RIS bushings align with the growing demand for oil-free, lower-maintenance and sustainable bushing technologies. These products are increasingly relevant for modern power systems, renewable-linked grids and applications requiring improved reliability and operating performance.

HIGH-CURRENT BUSHINGS

The Companys high-current bushings serve generation-station transformer applications and are engineered for demanding operating environments. These products support power-generation and industrial applications where high current handling, reliability and customisation are critical.

WALL-THROUGH AND OIL-TO-OIL BUSHINGS

The Company also offers wall-through and oil-to-oil bushings for specialised transformer and substation applications, with customisation capabilities to meet varied customer and installation requirements.

AFTER-SALES SERVICES & RETROFIT

Yashr provides retrofitting and replacement solutions for old bushings, including customised drop-in replacements. This segment supports lifecycle extension of existing transformer fleets and strengthens long-term relationships with utilities and transformer OEMs.

SWOT analysis
S trengths	W eaknesses
Technological leadership: Early and aggressive move into Resin Impregnated Paper (RIP) and Resin Impregnated Synthetic (RIS) technology, which are now the global Gold Standard for safety	Product concentration: High revenue dependency on a single component category (Electrical Bushings), making the Company sensitive to specific grid-tech shifts.
Singular specialisation: Unlike broad-conglomerate competitors,	Working capital cycle: The nature of long-lead infrastructure projects and utility-based clients can lead to extended receivables cycles
Yashs 100% focus on transformer bushings allows for superior customisation and faster R&D cycles
Pre-qualified status: Approved vendor for elite, high-barrier-to-entry entities like PGCIL, NTPC, NPCIL & DRDO, along with several noteworthy global utilities, creating a significant moat against new entrants	Raw material sensitivity: Exposure to price volatility in specialised papers, resins and high-grade aluminium/copper
Agile manufacturing: Ability to provide custom Drop-in replacements for brownfield retrofitting, a high-margin segment that larger OEMs often overlook
Global supply network: The Company has established a supply footprint across more than 60 countries, supported by a well-established network of agents and channel partners, strengthening its global reach and customer responsiveness
Scalable manufacturing capacity: The commissioning of a new
Greenfield manufacturing facility, together with a planned expansion roadmap, provides the Company with the capacity and flexibility to support future growth and rising demand Long-term expansion readiness: Strategic investment in additional land creates a platform for phased capacity expansion, supporting sustained business growth over the next five to seven years
Strategic presence in the United States: The establishment of a dedicated sales office in the U.S.- one of the worlds largest and fastest-growing markets for transmission and distribution infrastructure- strengthens customer engagement and supports the Companys global expansion strategy O pportunities
	T hreats
The China + 1 pivot: Global utilities (especially in the U.S.) are actively seeking non-Chinese alternatives for critical grid components, creating a meaningful opportunity for Yash to position itself as a reliable non- Chinese supplier of critical grid components	Geopolitical protectionism: Rising trade barriers or local-content requirements in export markets could necessitate further localised manufacturing investment
Data centre expansion: The surge in AI-driven data centres requires high-reliability, fire-safe (RIP) bushings for indoor substations, a perfect match for Yashs portfolio Vertical integration: The upcoming internal production of RIP cores will significantly reduce import dependence and expand the addressable global market	Intensifying competition: Larger global players may increase their focus on the Dry-type segment as the market matures, potentially leading to price pressure Rapid decarbonisation policies: Fast-tracked mandates for specific environmental certifications could require continuous and costly compliance updates
Nuclear & SMR expansion: Indias new push for Small Modular Reactors (SMRs) provides a niche high-margin opportunity for Yashs specialised nuclear-grade bushings	Geopolitical conflict: Ongoing geopolitical tensions, trade restrictions and disruptions across key shipping corridors could lead to extended supply chain lead times and increased volatility in freight, logistics and critical raw material costs. For specialised electrical components and imported inputs, such developments may impact procurement timelines, working capital cycles and project execution schedules
Global brand-building opportunity: Scope to strengthen brand equity across North American and European Tier-1 Integrated grid solutions:
The inclusion of Sukrut creates opportunities to address a wider spectrum of transmission and distribution requirements, enabling the Company to deepen relationships with utilities and EPC customers while improving wallet share across infrastructure projects

MANAGEMENT DISCUSSION & ANALYSIS

The SWOT analysis indicates that Yash Highvoltager enters its next phase of growth from a position of considerable technical strength, supported by deep product specialisation, global customer approvals and expanding manufacturing capabilities. While concentration in select product categories and exposure to raw material and geopolitical risks warrant prudent management, the Companys ongoing capacity expansion, backward integration into RIP/RIS technology and increasing global demand for reliable grid infrastructure position it favourably to capitalise on emerging opportunities. With its differentiated technology, export-led strategy and focus on high-value applications, Yashr is well placed to strengthen its competitive positioning and deliver sustainable long-term growth.

Business performance

During the year, Yash Highvoltager strengthened its position as a Demand was supported by domestic power infrastructure specialised transformer bushing manufacturer, backed by utility investment, renewable integration and replacement-led approvals, in-house testing capabilities and a strong track record opportunities, while expanding export engagement and of supplying mission-critical components. Its product portfolio customer relationships across multiple geographies advanced across OIP, RIP, RIS, high-current and retrofit bushings remained the Companys transition from a domestic specialist to an aligned with the evolving needs of utilities, transformer OEMs and increasingly global bushing solutions provider. grid infrastructure customers.

Financial performance
(A) Analysis of the statement of Profit and Loss (Amount in Rs Lakh)
Total income:	24,096.27
Revenue from operations:	23,516.08
Depreciation:	633.00
Finance cost:	397.63
Other income:	580.19
Net profit:	3,734.01
(B) Analysis of the Balance Sheet (Amount in Rs Lakh)
Net worth:	18,399.58
Long term borrowing:	634.63
Short term borrowing:	2,474.18
Total assets:	26,443.15
Inventories:	6,664.64
Current liabilities:	6,770.80
Non-current liabilities:	1,272.77

Internal control systems & their adequacy

The Company maintains an internal control framework aligned with the scale and complexity of its operations, designed to support financial integrity, operational efficiency, regulatory compliance and effective risk oversight. The framework spans procurement, manufacturing, quality control, inventory, sales, finance, compliance and reporting, with management reporting systems enabling periodic monitoring of key performance indicators, working capital, funding requirements and governance practices.

The internal audit process reviews the adequacy and effectiveness of controls across business functions and reports observations to the Audit Committee for review and corrective action. As the Company scales and expands into global markets, continued strengthening of systems, process discipline and technology-enabled controls will remain central to supporting sustainable growth.

Human resources
Yash Highvoltage considers its people the most valuable asset and a key driver of long-term success. The Company is committed to fostering an inclusive, equitable workplace where every individual is treated with respect, fairness and dignity. As of March 31, 2026, the Company had a team size of 208 employees, comprising skilled engineers, technicians, specialists and operational personnel whose expertise in materials science, electrical engineering and manufacturing processes underpins the delivery of precision-engineered, high-performance products.	The Company actively invests in training and development to strengthen technical skills, promote knowledge sharing and keep pace with evolving industry technologies and safety standards. This continuous learning environment, combined with a culture of collaboration, accountability and problem-solving, supports productivity, product quality and innovation, enabling the Company to consistently meet customer expectations while remaining agile in a dynamic business environment.
Information technology
Technology systems continue to underpin Yash Highvoltages operational visibility, process discipline and customer responsiveness. The Companys integrated SAP platform connects lead generation, procurement, production, inventory, quality, dispatch and after-sales processes within a single workflow, enabling material traceability, real-time data flow across functions and faster, better-informed decision-making at every stage of the value chain.	As operations expand across global markets, continue investment in digital systems, process automation, cybersecurity and data-driven controls will remain central to operational efficiency, regulatory compliance, customer service standards and business continuity, while also supporting the agility required to respond to evolving market and technology demands.

Risk management

The Companys risk management approach is focused on identifying, assessing and mitigating risks that may affect operational continuity, financial performance, customer relationships, product quality and long-term growth. Given the Companys specialised role in the transformer bushing ecosystem, key risks are linked to raw material availability, quality performance, export market dynamics, working capital cycles, technology shifts and project execution.

Key risks and their mitigation measures

DEMAND & COMPETITION RISK

A drop in demand for bushings or rising competitive intensity could affect the Companys growth ambitions.

Mitigation measures:

Transformer bushings are a critical component in every power transformer, making their demand closely linked to investments in power infrastructure. With Indias electricity demand projected to grow steadily and grid modernisation accelerating worldwide, the demand outlook for transformer bushings remains robust over the medium to long term.

Moreover, the transformer bushing industry is characterised by significant entry barriers. Establishing a credible presence requires specialised design expertise, advanced manufacturing infrastructure, extensive testing capabilities, stringent quality systems and approvals from utilities, OEMs, and independent certification bodies. Given the critical nature of transformer bushings in power systems, customers place a higher value on proven field performance and long-term reliability, making qualification cycles lengthy and demanding. As a result, it can take several years for a new entrant to develop the required capabilities, secure approvals and gain meaningful market acceptance.

With over two decades of operating experience, established product performance, compliance with leading international standards and approvals from major utilities and OEMs, Yash Highvoltager is well positioned to capitalise on the growing opportunities in both domestic and global markets.

RAW MATERIAL & INPUT COST RISK

Specialised papers, resins, aluminium, copper and other critical materials are exposed to price and availability fluctuations. These factors could have a considerable impact on the Companys operations and performance.

Mitigation measures:

The Company continues to strengthen supplier relationships, diversify its vendor base and improve procurement planning to ensure supply continuity and manage input cost volatility.

MANAGEMENT DISCUSSION & ANALYSIS

SUPPLY CHAIN & IMPORT DEPENDENCE RISK

Dependence on certain imported components, including RIP/RIS-related inputs, can affect lead times, cost and responsiveness.

Mitigation measures:

The upcoming Greenfield facility and backwards-integration initiatives are expected to reduce dependence on imports and strengthen supply chain resilience.

FOREIGN EXCHANGE & EXPORT RISK

Export growth exposes the Company to currency movements, trade barriers, certification requirements and geopolitical uncertainties.

Mitigation measures:

The Company seeks to manage export-market risks through wide geographical diversification, market-specific product-lines and approvals, disciplined hedging of forex, robust commercial terms and ongoing engagement with international customers. The Companys export earnings partially offset the currency fluctuation risk.

WORKING CAPITAL RISK

Long project cycles and utility or OEM-linked orders may result in extended receivable cycles and higher working capital requirements.

Mitigation measures:

The Company continues to monitor receivables, order execution, inventory planning and funding requirements through structured internal controls and management reporting, while maintaining strict governance over debtor and creditor cycles.

PRODUCT QUALITY & FIELD PERFORMANCE RISK

Transformer bushings are mission-critical components. Any quality failure can affect customer confidence, warranties and reputation.

Mitigation measures:

The Companys proven design robustness, state-of-the-art infrastructure; in-house NABL (ILAC) accredited testing capabilities, ISO systems and 100+ years of combined technical expertise, process controls and adaptability to global standards support product reliability across its product range.

TECHNOLOGY RISK

Changes in transformer technology, increasing adoption of advanced dry-type systems and competition from large global players may affect market positioning.

Mitigation measures:

Continued investment in R&D, RIP/RIS technologies, testing capabilities, customised engineering and retrofit solutions helps the Company remain aligned with evolving customer requirements.

CAUTIONARY STATEMENT

THE STATEMENTS IN THIS MANAGEMENT DISCUSSION AND ANALYSIS REPORT DESCRIBING THE COMPANYS OBJECTIVES, PROJECTIONS, ESTIMATES, PLANS, INDUSTRY, CONDITIONS AND EVENTS ARE FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF THE APPLICABLE LAWS OR REGULATIONS. THE STATEMENTS ARE BASED ON CERTAIN ASSUMPTIONS AND EXPECTATIONS OF FUTURE EVENTS. THE COMPANY CANNOT GUARANTEE THAT THESE ASSUMPTIONS AND EXPECTATIONS ARE ACCURATE OR WILL BE REALISED. THE COMPANYS ACTUAL RESULTS, PERFORMANCE, OR ACHIEVEMENTS COULD THUS DIFFER MATERIALLY FROM THOSE PROJECTED IN ANY SUCH FORWARD-LOOKING STATEMENTS. THE COMPANY ASSUMES NO OBLIGATION TO PUBLICLY AMEND, MODIFY OR REVISE ANY FORWARD-LOOKING STATEMENTS BASED ON ANY SUBSEQUENT DEVELOPMENTS, INFORMATION OR EVENTS.