Analysts/Institutional Investor Meet/Con. Call Updates

“Salzer Electronics Limited Q1 FY27 Earnings Conference Call” August 10, 2026 MANAGEMENT: MR. RAJESHKUMAR DORAISWAMY – JOINT MANAGING DIRECTOR – SALZER ELECTRONICS LIMITED MR. P. SIVAKUMAR – ASSISTANT VICE PRESIDENT, MARKETING – SALZER ELECTRONICS LIMITED MR. P. B. BELLARY – ASSISTANT VICE PRESIDENT, BUSINESS DEVELOPMENT – SALZER ELECTRONICS LIMITED MRS. R. MENAKA – GENERAL MANAGER, ACCOUNTS – SALZER ELECTRONICS LIMITED – SALZER ELECTRONICS LIMITED MR. K.M. MURUGESH – COMPANY SECTARY – SALZER ELECTRONICS LIMITED MR. JITENDRA VAKHARIA – NON-EXECUTIVE DIRECTOR – KAYCEE INDUSTRIES MR. K. RAMAN – CHIEF FINANCIAL OFFICER – SALZER ELECTRONICS LIMITED Page 1 of 15 Salzer Electronics Limited August 10, 2026 Moderator: Ladies and gentlemen, good day, and welcome to Salzer Electronics Limited Q1 FY27 Earnings Conference Call. As a reminder, all participant lines will be in listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. K. Raman, Chief Financial Officer from Salzer Electronics Limited. Thank you, and over to you, sir. K. Raman: Good morning, everyone, and thank you for joining us today to discuss the unaudited financial performance for the first quarter year ended 30th June 2026. I have with me Mr. Rajeshkumar Doraiswamy, Joint Managing Director; Mr. Sivakumar, Assistant Vice President, Marketing; Mr. Bellary, Assistant Vice President in Business Development; Mrs. Menaka, General Manager Accounts; and Mr. K. M. Murugesh, Company Secretary; and Mr. Jitendra Vakharia, Non- Executive Director, Kaycee Industries. I shall now take you through the consolidated financial performance for the quarter ended June 2026. During the quarter, our revenues increased by 13% year-on-year growth to INR498 crores from INR441 crores in the previous corresponding period. This growth was mainly driven by higher demand for industrial switchgear, wires and cables and Building Products division business mainly due to high demand products like 3 phases transformers, wire harness, relays and new products like contactors, etcetera. Contribution from exports at approximately 18.6%. The EBITDA, excluding other income, was INR31 crores in Q1 2027 as against INR42 crores in Q1 FY26. The EBITDA margin for the quarter stood at 6%. The profit after tax was INR8 crores in Q1 2027 as against INR17 crores in Q1 2026. PAT margin for the quarter stood at 2%. Moving on to the breakup of revenue as per the business divisions. The Industrial Switchgear division contributed 54% of the total revenue in this quarter. This business grew 10% year-on- year in Q1 2027. The EBITDA margin for this business division stood at 8% in Q1 2027. The Wire & Cable division contributed nearly 40% to our revenues this quarter. There is increase of 11% on year-on-year growth in this division during the quarter. EBITDA margin for this division stood at 5% in Q1 2027. The Building Products division has contributed 6% to our revenues in this quarter. There is an increase of 48% year-on-year growth in Q1 2027. On the exports front, for this quarter, the export share of revenue was nearly 19% in Q1 2027. Now I'd like to hand over now to Mr. Rajesh to take us through the business developments that they have. Thank you. Rajeshkumar Doraiswamy: Thank you, Mr. Raman. Good morning, everyone, and a very warm welcome to Salzer Electronics earnings conference call for the quarter ended 30th June 2026. Thank you all for taking time to join us today. We have shared our results, update, presentation and media release, and I hope you have received and gone through the same. I would like to begin by giving you Page 2 of 15 Salzer Electronics Limited August 10, 2026 an overview of our business performance, key operational developments and the opportunities that we see ahead. Before discussing our individual business segments, I would like to briefly touch upon the broader environment in which we are operating at present. Globally, the operating environment continues to remain mixed and volatile. While global economic activity has demonstrated resilience, businesses continue to navigate trade policy uncertainties, geopolitical developments, changing tariff structures, the West Asia conflict and volatile and a very high raw material prices. The IMF's latest July 2026 outlook projects global growth at around 3% in 2026, followed by an improvement to 3.4% in the coming year 2027. At the same time, global economy continues to face risks from geopolitical tensions, supply chain disruptions and elevated inflationary pressures. For an electrical equipment manufacturer like Salzer, the global environment has a direct impact, particularly through copper, silver, aluminium and other key plastic raw materials as well as through freight, currency movements and export market demand. During the quarter, we witnessed elevated and volatile input costs, particularly in copper, silver and aluminium. These commodities are important inputs across several of our switchgear components and products like transformers, contactors and other switchgear products. This environment resulted in margin contraction during the quarter. However, importantly, we continue to see healthy underlying demand, and we are addressing input material inflation through sourcing efficiencies, calibrated pricing actions of our finished products and operational efficiencies. Coming specifically to India, we remain positive about the structural outlook for the electrical equipment industry. India is going through a significant phase of electrification, infrastructure development and energy transition-led investment. The electrical and allied electronics industry is closely linked to investment in power transmission and distribution, manufacturing, infrastructure, railways, renewable energy, data centre boom, real estate and industrial automation. According to IEEMA, the transmission and distribution segment accounts for approximately 65% of the Indian electrical and allied electronics industry, highlighting the importance of India's ongoing power infrastructure expansion. The Central Electricity Authority's latest data also reflects the continued expansion of India's power infrastructure. In May 2026 alone, India added approximately 3,500 megawatts of renewable capacity, 1,120 kilometres of transmission lines and 7,200 megawatts of transmission capacity, while peak demand reached approximately 270 gigawatts. We believe this continued investment in the electricity ecosystem creates a favourable multi-year-demand environment for electrical equipment manufacturers like Salzer. Another important structural trend is the increasing intensity of electricity consumption across the economy. India's transition towards renewable energy, electrification of mobility, data centre expansion and industrial automation is increasing the requirement for efficient, reliable and intelligent electrical infrastructure. Page 3 of 15 Salzer Electronics Limited August 10, 2026 This creates opportunities for all of Salzer's product lines. IEEMA estimates significant future requirements around battery storage, EV charging infrastructure, railway electrification and smart city infrastructure, which reinforces the broader opportunity for companies operating across the electrical ecosystem. For Salzer, this transition is particularly relevant because we are progressively expanding from being a traditional electrical component manufacturer towards a broader electrification and energy management platform. Now coming to our key updates on the recent developments in the last quarter. During the quarter, we continued to strengthen our strategic investments in emerging businesses and technologies. We made an additional investment of INR13 lakhs [Showing first 8,000 characters — download PDF for full document]