Abril Paper Tech Ltd Management Discussions

This chapter on Managements Discussion and Analysis ("MD&A") is to provide the stakeholders with a greater understanding of the Companys business, the Companys business strategy and performance, as well as how it manages risk and capital. The following management discussion and analysis is intended to help the reader to understand the results of operation, financial conditions of Abril Paper Tech Limited:

INDUSTRY STRUCTURE AND DEVELOPMENT:

Indias paper and paper products industry has established itself as a significant global contender, accounting for approximately 5% of the worlds total paper production and positioning the nation among the top 15 paper-producing countries globally. The broader Indian paper and paper products market has experienced a robust upward trajectory, expanding from a valuation of USD 8.6 billion in 2018 to USD 13.4 billion by 2024, reflecting a strong Compound Annual Growth Rate (CAGR) of 7.8%. The sector serves as a massive socio-economic driver, providing direct employment to over 500,000 people nationwide. Government-backed developmental blueprints—such as the Central Pulp and Research Institutes ongoing initiatives to establish testing facilities for specialty paper and paper boards, alongside reinforcing training and Human Resource Development (HRD) frameworks—continue to foster an environment ripe for high-value specialty paper investments.

The paper and packaging industry—specifically the specialty paper sector—continues to evolve rapidly. Abril Paper Tech Limited operates primarily in the niche domain of Sublimation Heat Transfer Paper (ranging from 30 GSM to 90 GSM), which serves as a core material for the digital printing industry.

Digital Textile Boom: The demand for high-quality sublimation paper is heavily driven by advancements in digital textile printing across garments, hosiery, apparel, and home furnishings.

Shift to Sustainable Media: Industrial textile printers are increasingly shifting away from traditional dyeing methods toward digital heat transfer techniques to optimize water consumption and reduce environmental footprints, positioning companys product lineup perfectly within contemporary demand curves.

OVERVIEW OF THE COMPANY:

Incorporated originally as a partnership firm under the name "M/s Abril International" on January 01,2019, the business underwent a structural evolution to better capture market opportunities. It was converted into a private limited entity on November 17, 2023, and subsequently transitioned into a public limited company under the name Abril Paper Tech Limited (APTL), receiving its fresh certificate of incorporation on September 17,

2024. The company achieved a landmark corporate milestone during the fiscal year under review:

Successful Public Listing: In September 2025, the Company successfully completed its Initial Public Offering (IPO), raising Rs. 13.42 Crore (Rs. 1,342.00 Lakhs) through a fresh issue of 22,00,000 equity shares. The shares were officially listed on the SME Platform of BSE Limited on September 5, 2025.

As a manufacturer, the Company specialize in producing sublimation heat transfer paper in various GSM (grams per square meter) specifications, including 30, 65, 75, and 90 GSM. Each GSM specification is designed to meet different needs within the sublimation printing process, offering a range of applications from light and delicate transfers to more robust and detailed printing tasks. The Company has its own sales team to market the products and maintain strong customer relationships. The Company operates two coating lines, enabling it to Process and supply large quantities of coated sublimation paper. The Company uses quality grade half-white shade virgin paper and specialized coating chemicals, prioritizing consistent coating quality and the preserving of the base paper. The Company sourcing base paper directly from Paper manufacturer and dealers of manufacturer.

COMPETITIVE STRENGTHS:

Unique Product Quality: A key competitive advantage of the company is the distinctive coating quality developed by its production team, which differentiates it from other manufacturers. From the outset, it has consistently produced sublimation paper with this unique coating, delivering it to its long-term customers. Its commitment is to continue providing this quality product for as long as it operates. Additionally, the company uses natural shade raw material for all grades and sizes.

Strategic Location: Manufacturing facility situated in Surat, Gujarat—the textile hub of India—ensuring immediate proximity to major domestic customers and low logistical turnarounds.

Diversified Product Mix: Ability to provide a broad dimension index (24 to 72 inches) and varied weight parameters (30 GSM to 90 GSM) accommodating both high-speed industrial plotters and boutique sublimation setups.

OPPORTUNITIES:

Geographical Expansion: Capitalizing on the established pan-India distribution matrix to tap deeper into southern and northern textile clusters (e.g., Tirupur, Ludhiana).

Export Potentials: Leveraging global standards of premium coating quality to explore nearby South Asian and Middle Eastern export corridors.

RISKS AND CONCERNS AND THREATS:

Our business is dependent on the delivery of an adequate and uninterrupted supply of electricity, water and fuel. We procure utilities, such as water and electricity, from third parties for use at our manufacturing facilities. Reliance on third parties for such utilities exposes us to risks such as shortage or breakdown in supply, the correction of which is in the hands of such third parties.

We operate out of a single Manufacturing Facility, located at Surat, Gujarat which exposes our operations to potential geographical concentration risks arising from local and regional factors which may adversely affect our operations and in turn our business, results of operations and cash flows. However, apart from COVID-19 related operational restrictions, that were imposed on our facility, we have not experienced any material disruption at any of our existing manufacturing facility in the past.

Our company depends significantly on key raw materials such as base paper and coating compounds for producing sublimation heat transfer paper rolls, which exposes us to risks related to price volatility and supply shortages.

Segment-wise or product-wise performance:

The Company currently has only one segment of business i.e., Manufacturing and Trading of Paper and Paper Products

Outlook

The companys strategic horizon remains exceptionally positive. With the successful completion of its SME public issue, the corporate balance sheet has been deleveraged and re-capitalized. Capital expenditure towards state-of-the-art coating expansions will transform APTL from a localized regional supplier into a high-capacity national player. By leveraging its newly infused working capital reserves, the company aims to broaden its footprint in non-Gujarat markets, mitigate customer concentration, and optimize its production run-time configurations to capture high-margin segments in the home furnishing and technical garment industries.

Internal control systems and their adequacy

Adequate internal control systems commensurate with the nature of the Companys business, size and complexity of its operations are in place and have been operating satisfactorily. Internal control systems comprising of policies and procedures are designed to ensure reliability of financial reporting, timely feedback on achievement of operational and strategic goals, compliance with policies, procedure, applicable laws and regulations. Internal control systems are designed to ensure that all assets and resources are acquired economically, used efficiently and adequately protected.

Financial performance and operational performance

During financial year 2025-26, the Company continued its growth trajectory and registered improved performance in terms of revenue. There is a significant change in the key financial ratios for the year 2025-26 which are as below:

SR. No Ratios	Current Reporting Period	Previous Reporting Period	% of Change	Reason for variance
1 Current ratio	14.12	5.00	217.40%	Mainly on account of increase in current Investment and Loans and advances
2 Debt Equity Ratio	0.03	0.10	74.61%	Mainly on account of increase in shareholders equity
3 Debt Service coverage ratio	3.76	1.88	-100.27%	Mainly on account of decrease in debt service
4 Return on Equity Ratio	0.09	0.17	49.91%	Mainly on account of increase in shareholders equity
5 Inventory Turnover Ratio	15.45	12.61	-22.54%	Mainly on account of increase in cost of services.
6 Trade Receivables turnover ratio	9.54	13.51	29.40%	Mainly on account of increase in trade receivable
7 Trade payables turnover ratio	61.41	66.34	7.42%	N.A.
8 Net capital turnover ratio	2.86	6.23	54.14%	Mainly on account of increase in current Investment and Loans and advances
9 Net profit ratio	0.02	0.02	0.50%	N.A.
10 Return on Capital employed	0.09	0.18	52.50%	Mainly on account of increase in Net Worth
11 Return on investment	0.27	N.A.	N.A.	N.A.

Material developments in Human Resources / Industrial Relations front, including number of people employed:

The transition from a closely held partnership firm to a listed public limited entity has mandated a systematic professionalization of the human resource framework. Industrial relations at the manufacturing plant in Jolva and administrative offices in Surat remain completely cordial and productive, with zero instances of labor unrest or work stoppages. We believe that our employees are the backbone of our organization. We are committed to provide equal opportunities to all our employees and it emphasizes on welfare of its employees and it strives to engage and retain talented workforce at all levels. There exist peaceful and amicable relations with our employees. As on 31st March, 2026, there were total 16 (Sixteen) permanent employees on the pay roll of the Company.

Cautionary Statement:

Statements made in this report describing the Companys objectives, projections, estimates, and expectations may be forward-looking within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed or implied, depending on various factors beyond the Companys control.

	For & on behalf of Board of Directors of
	M/s. ABRIL PAPER TECH LIMITED
Regd office:
238/3, Shiva Ind. Estate, Jolva, Ta. Palsana, Surat, Gujarat, India, 394305	Sd/-	Sd/-
	Vipul Karshanbhai Dobariya	Ashvinbhai Laxmanbhai Lathiya
Date: 10/07/2026 (Chairman and Managing Director)	(Whole Time Director)
Place: Jolva	DIN : 10394570	DIN : 10394568