Albert David Ltd Management Discussions

ECONOMY & INDUSTRIES OVERVIEW Global Economy

The global economy in F.Y. 2025-26 navigated a phase of cautious stabilisation. The macroeconomic environment remained turbulent, shaped by persistent geopolitical tensions, regional conflicts and the ongoing realignment of global supply chains. While growth has proved more resilient than many feared in early 2025, it remains historically modest, tempered by high trade barriers and geopolitical friction. Current projections from the International Monetary Fund (IMF) and Organisation for Economic Co-operation and Development (OECD) suggest a slight slowdown in Calendar Year (CY) 2026 as the front-loading of trade (buying goods before tariffs hit) from late CY2025 unwinds.

After withstanding higher trade barriers and elevated uncertainty last year in CY2025, global activity now faces a major test from the outbreak of war in the Middle East. Assuming that the conflict remains limited in duration and scope, global growth is projected to see a slight deceleration to 3.1 per cent in CY2026 and 3.2 per cent in CY2027, based on the IMF World Economic Outlook (WEO), April 2026.

Global headline inflation is projected to rise modestly in the current calendar year 2026 before resuming its decline in 2027, as noted in the WEO April report. Slowdown in growth and an increase in inflation are expected to be particularly pronounced in emerging markets and developing economies.

These global developments have a direct bearing on the operating environment of Albert David Limited. As a pharmaceutical company engaged in manufacturing and trading pharmaceutical formulations, infusion solutions, herbal dosage forms and bulk drugs, the Company remains exposed to changes in input prices, international logistics, foreign exchange movements, availability of key starting materials, APIs, excipients and packaging materials and evolving regulatory expectations across markets. Higher trade barriers, geopolitical disruptions and elevated inflation may increase procurement, freight, energy and compliance-related costs, while also affecting delivery schedules and working-capital requirements.

During the fiscal year, the Company continued to focus on operational discipline by strengthening vendor management, improving inventory planning and streamlining supply-chain processes to ensure continuity of manufacturing and timely availability of products. Your Companys efforts to upgrade its facilities in line with Revised Schedule-M requirements, together with its ongoing focus on quality systems and technology adoption, also support greater resilience in a more uncertain global environment. These measures are important for protecting margins, maintaining product quality and ensuring reliability of supply to domestic as well as institutional customers.

In export and international supply opportunities, global conditions remained mixed. While subdued global growth, tariff-related uncertainty and currency volatility may influence pricing, demand visibility and market access, the continuing need for affordable and quality pharmaceutical products provides long-term opportunities for Indian pharmaceutical manufacturers. Albert David Limiteds established product portfolio, focus on compliance and initiatives such as the successful completion of the WHO-Geneva PQ audit for SSG strengthen its readiness to respond to such opportunities, subject to applicable regulatory approvals, market conditions and customer requirements.

Indian Economy

India has continued to be a key driver of global growth, supported by strong domestic demand and structural reforms, which also reinforced its position in critical sectors such as pharmaceuticals, as highlighted by the International Monetary Fund (IMF) in its World Economic Outlook (WEO) report.

Real GDP at Constant Prices is projected to attain a level of Rs.201.13 Lakh Crore in F.Y. 2025-26, against the First Revised Estimates (FRE) of GDP of Rs.187.97 Lakh Crore in F.Y. 2024-25, registering a growth rate of 7%. While nominal GDP, or GDP at current prices, is estimated to attain a level of Rs.365.40 lakh crore in the F.Y. 202526 against Rs.330.68 lakh crore in the F.Y. 2024-25, showing a growth rate of 10.5%.

On the other hand, Real GVA is estimated at Rs.183.56 Lakh Crore in the F.Y. 2025-26, against the FRE for the F.Y. 2024-25 of Rs.171.87 Lakh Crore, registering a growth rate of 6.8%. Meanwhile, Nominal GVA is estimated to attain a level of Rs.330.24 Lakh Crore during F.Y. 2025-26 against Rs.300.22 Lakh Crore during F.Y. 2024-25, showing a growth rate of 10%.

Real GDP at Constant Prices is projected to attain a level of Rs.201.13 Lakh Crore in F.Y. 2025-26, against the First Revised Estimates (FRE) of GDP Rs.187.97 Lakh Crore in F.Y. 2024-25, registering a growth rate of 7%. While nominal GDP, or GDP at current prices, is estimated to attain a level of Rs.365.40 Lakh Crore in the F.Y. 2025-26 against Rs.330.68 Lakh Crore in the F.Y. 2024-25, showing a growth rate of 10.5%.

On the other hand, Real GVA is estimated at Rs.183.56 Lakh Crore in the F.Y. 2025-26, against the FRE for the F.Y. 2024-25 of Rs.171.87 Lakh Crore, registering a growth rate of 6.8%. Meanwhile, Nominal GVA is estimated to attain a level of Rs.330.24 Lakh Crore during F.Y. 2025-26 against Rs.300.22 Lakh Crore during F.Y. 2024-25, showing a growth rate of 10%.

The International Monetary Fund (IMF) has slightly upgraded Indias GDP growth forecast for F.Y. 27 to 6.5%, even as it warns that escalating geopolitical tensions?particularly the war in the Middle East-will weigh on global momentum and push inflation higher in the near term. While maintaining strong domestic growth, India slipped to the 6th largest economy ($4.15 trillion nominal GDP) behind the UK and Japan due to rupee depreciation.

Indias economic resilience, supported by domestic demand and structural reforms, continued to strengthen the countrys position in key sectors including pharmaceuticals. The pharmaceutical industry remains an important contributor to Indias manufacturing and export capabilities, supported by cost-efficient production, skilled manpower and established regulatory experience.

For Albert David Limited, this environment provides opportunities to strengthen its participation in domestic as well as international markets, particularly in products where quality, compliance and reliable manufacturing are key differentiators. The Companys export opportunities, however, remain linked to global demand conditions, currency movements, logistics costs, regulatory requirements and pricing pressures in overseas markets.

Any slowdown in major economies, geopolitical disruption or trade-related uncertainty may affect export demand visibility, shipment timelines and market access. The Company continues to focus on quality systems, manufacturing reliability and regulatory readiness to remain better prepared for such external developments and to support future export opportunities, subject to applicable approvals, customer requirements and market conditions.

Financial Performance with Respect to Operational Performance

The details of the financial performance of the Company are appearing in the Balance Sheet and the Statement of Profit & Loss, along with notes to financial statements forming part of this Annual Report. Salient features of financial performance during the Financial Year 2025-2026 vis-a-vis Financial Year 2024-2025 are as follows:

Rs. in Lakhs

Financial parameters	F.Y. 2025-26	F.Y. 2024-25
Revenue from Operations	33,359.81	34,576.79
Other Income	745.33	2,958.08
Earnings before interest, tax, depreciation & amortization	1,291.99	3260.70
Gross Profit (EBDTA)	1,028.77	3219.66
Profit before exceptional item & tax	52.49	2522.77
Exceptional Item	-	-
Profit/ (Loss) after tax	(149.47)	1720.08

The Company always keeps track of the latest developments in the field of technology and remains in continuous touch with foreign manufacturers/machine suppliers for the latest developments in the pharmaceutical industry. Efforts are being made to adopt the latest technology to upgrade its units for effective cost control to meet market demand. We at Albert David Limited are focusing on continuous improvement, be it in quality, machinery, or drug delivery systems. In view of that, Your Company has upgraded its facility as per Revised Schedule-M. Our R & D team is working on new molecules to strengthen the new product pipeline & drug delivery system in this highly challenging pharmaceutical market. Building on this momentum, the Company is currently in the process of focusing on building these brands by creating a strong prescriber base and developing KOLs, further strengthening the portfolio and market presence.

Industry Structure and Development

The global pharmaceutical industry in the fiscal year F.Y. 2025-26 continued its growth trajectory, shaped by several key trends and challenges:

1. Market Growth: The global pharmaceutical market size was estimated at around USD $ 1.77-trillion in 2025 and is expected to grow at a CAGR of up to 7.3 per cent through 2030. The global pharmaceutical industry is undergoing a structural shift. It is no longer just about blockbuster drugs; growth is now driven by a convergence of high-cost precision medicine, aggressive artificial intelligence (AI) integration and a massive demographic shift in emerging markets, as we move through 2026.

2. Technological Advancements: The core of the F.Y. 2026 landscape was defined by the convergence of Agentic AI, Modular Manufacturing and Programmable Medicines. Advancements in biologics, personalised medicine and RNAi-based therapeutics continued to enhance treatment outcomes during the year. Technological innovations in drug delivery systems, along with expanding access to healthcare in emerging economies, further contributed to market expansion and improved patient outcomes. Albert David uses technology extensively in every aspect of our value proposition: from business, manufacturing pharmaceutical formulations, infusion solutions and bulk drugs (APIs), streamlining processes, improving delivery to monitoring of the business.

3. Regulatory Landscape: The pharmaceutical manufacturing market remained highly competitive and fragmented, with the presence of several global and international players. Regulators like the FDA (US), EMA (EU) and NMPA (China) have become active participants in the digital lifecycle of a drug. In F.Y. 2026, pharmaceutical regulation has moved toward dynamic, data-driven oversight. The F.Y. 2026 landscape is defined by three major shifts: the regulation of AI, the enforcement of supply chain transparency and a global crackdown on drug pricing. Albert David Ltd has successfully completed the WHO-Geneva PQ audit for SSG. Also successfully upgraded the manufacturing facility in compliance with Revised Schedule-M.

4. Mergers and Acquisitions: Consolidation within the industry continued during the year F.Y. 2025-26, as companies sought to enhance their product pipelines, technological capabilities and global market presence through strategic mergers, acquisitions and alliances. Global deal value increased by almost 15% as compared to the last year, as companies scrambled to offset the patent cliff and capitalise on easing interest rates.

5. Focus on Rare Diseases and Speciality Medicines: Driven by regulatory incentives and significant unmet medical needs, there was a growing emphasis on developing treatments for rare diseases and specialised therapies in the fiscal year under review, F.Y. 2026. Globally, rare diseases have become the primary focus for R&D investment due to favourable regulatory pathways and the high price-per-patient model. Albert David continued manufacturing SSG injections, a medicine used for Kala Azar and progressed in the development of a more advanced molecule, Miltefosine, for the same indication.

6. Supply Chain Challenges: The industry continued to face supply chain disruptions and emphasised the need for resilience in manufacturing and distribution networks. In F.Y. 2026, the pharmaceutical supply chain has moved to a permanent state of strategic regionalisation. The primary challenge is no longer just moving products; it is navigating a fragmented global landscape where geopolitical security is prioritised over cost-efficiency. The industry is currently grappling with three systemic pressures that have redefined logistics in 2026. During the year, the Company undertook measures to streamline its supply chain operations to ensure smoother functioning and improved reliability.

7. Environmental and Sustainability Initiatives: Pharmaceutical companies are increasingly focused on sustainability by reducing carbon footprints and adopting environmentally friendly practices. The industry is currently focused on decarbonising the supply chain, which accounts for nearly 70% of its total emissions. In line with this, the Company implemented initiatives such as replacing conventional lighting with LED systems, utilising solar power, reusing water for conservation and maintaining greenery across its manufacturing units.

8. Digital Health: The integration of digital technologies such as artificial intelligence (AI), blockchain and the Internet of Things (IoT) continued to transform healthcare delivery, patient monitoring and treatment adherence during F.Y. 2025-26.

9. Global Health Equity: Efforts to address global health disparities continued, with a focus on improving access to affordable medicines through partnerships, access programmes and technology transfer initiatives across regions. The industry is moving toward a model of regional sovereignty, where low- and middle-income countries (LMICs) are building their own high-tech manufacturing ecosystems rather than waiting for exports. The 2026 landscape witnessed the rise of local, distributed innovation. With a legacy spanning several decades, Albert David Limited has built strong brand equity and a robust distribution network across India. Its presence in institutional and government supply segments provides a stable revenue base, while its focus on infusion therapy positions it uniquely within the pharmaceutical landscape.

The pharmaceutical industry in F.Y. 2025-26 was characterised by continued advancements in AI-driven drug discovery, personalised medicine and the growing prominence of biologics and biosimilars. At the same time, the industry navigated challenges related to rising drug development costs, evolving regulatory requirements and the need for robust and resilient supply chain systems.

To sum up, the pharmaceutical industry in F.Y. 2025-26 was characterised by continued advancements in AI-driven drug discovery, personalised medicine and the growing prominence of biologics and biosimilars. At the same time, the industry navigated challenges related to rising drug development costs, evolving regulatory requirements and the need for robust and resilient supply chain systems.

Outlook

India has cemented its status as a value-driven biopharmaceutical leader for F.Y. 2026-27, scaling its global footprint to supply nearly a quarter of all generic medicines and 65% of the worlds vaccines. Now home to over 3,500 companies and more than 11,000 manufacturing facilities producing 70,000 brands across 65 therapeutic categories, the Indian pharmaceutical industry has climbed to the 12th spot worldwide by value while maintaining its 3rd place ranking in production volume.

With more than 650 US-FDA-compliant plants?the highest count outside the United States and a mature API sector that provides 60% of the products on the WHO Essential Medicines List, India has significantly reduced its import dependencies through the success of the PLI (Production Linked Incentive) scheme. These domestic gains are bolstered by the Ayushman Bharat initiative, which now covers more than 600 million citizens and a network of 12,500 Jan Aushadhi outlets providing affordable care. Ultimately, the industrys shift toward complex generics, biosimilars and modernised MSMEs under the SPI (Strengthening of Pharmaceuticals Industry) scheme has transformed India into an indispensable pillar of global healthcare security and innovation.

Looking ahead to the current fiscal F.Y. 2026-27, Albert David Limited will continue to focus on strengthening its core business, improving operational efficiency and building a more resilient product and market portfolio. The Companys strategic priorities include expanding market reach, strengthening existing brands, developing selected new product categories and improving engagement with healthcare professionals, institutional customers and other stakeholders.

The Company will continue to place emphasis on quality, compliance and manufacturing excellence, particularly in view of evolving domestic and international regulatory expectations. Continued focus on Revised Schedule-M compliance, process improvement and technology-led efficiency will remain important for sustaining competitiveness.

In addition, Your Company intends to strengthen its digital initiatives across business processes, including better use of technology in operations, reporting, people management and internal controls. These initiatives are expected to support faster decision-making, improved process discipline and better organisational agility.

While the external environment may remain influenced by inflation, geopolitical developments, currency movements, supply-chain volatility and pricing pressures, the Company remains focused on disciplined execution, product quality, prudent cost management and sustainable growth.

Opportunities and Threats

India remained the largest provider of generic drugs globally and continued to be known for its affordable vaccines and generic medications. The industry has transitioned from a high-volume provider of low-cost generics into a high-value global leader in complex biologics and innovation. The Indian pharmaceutical industry was ranked third globally in pharmaceutical production by volume, reflecting its strong manufacturing base and global presence. The Indian pharmaceutical industry continued to benefit from inherent strengths such as cost competitiveness and the availability of a large and skilled workforce. Government-backed Production Linked Incentive (PLI) schemes are accelerating Indias role as a diversified global hub for APIs and key starting materials. Beyond manufacturing, the sector is integrating AI and digital health tools to streamline drug discovery and enhance patient adherence, while the domestic expansion of Ayushman Bharat is rapidly bringing millions of new patients into the formal healthcare ecosystem, fundamentally scaling the industrys addressable market.

However, it also faced ongoing challenges, including quality concerns and dependency on imported raw materials. In addition, the industry operated in an increasingly competitive global environment, facing pressure from other low-cost manufacturing countries as well as multinational pharmaceutical companies.

While the growth story is strong, several structural headwinds threaten to stall the industrys momentum. The industry remained subject to stringent regulatory oversight both domestically by the Central Drugs Standard Control Organisation (CDSCO) and internationally by regulatory authorities such as the U.S. Food and Drug Administration (US-FDA) and the European Medicines Agency. Changes in regulatory requirements continued to impact manufacturing processes, approval timelines and market access, leading to increased compliance requirements across the sector.

Despite these challenges, the Indian pharmaceutical industry continued to offer significant growth opportunities, supported by its strong research and development capabilities, cost-efficient manufacturing base and expanding domestic market. The Company has successfully complied with the revised Schedule M requirements and aligned its operations with standards prescribed by the World Health Organisation (Geneva), thereby strengthening its quality framework and enhancing its readiness for global markets.

During the financial year F.Y. 2025-26, Albert David Limited had improved operational efficiency and strengthened its product mix to capitalise on industry growth. The Company had also enhanced compliance and optimised its supply chain to effectively mitigate competitive and regulatory risks.

Internal Control Systems and Their Adequacy

The Internal Control Systems of Albert David Limited are commensurate with its size and the nature of its operations. These have been designed to provide reasonable assurance about recording and providing reliable operational information, complying with applicable accounting standards, safeguarding assets from unauthorised use, executing transactions with proper authorization and ensuring compliance with corporate policies. The Company has a well-defined delegation of authority with specified capital and revenue expenditure approval limits.

Your Companys internal control framework supports the execution of the strategy and ensures regulatory compliance. The risk management framework, financial control, internal audit and supporting policies set the foundation for internal control.

Albert David has appointed reputed external audit firms to conduct the internal audit. Improvements in processes are identified during reviews and communicated to the management on an ongoing basis. The Boards Audit Committee interacts with internal auditors and reviews internal audit findings and issues and their resolution through follow-ups.

These controls were further supported by statutory audits and review by the Audit Committee, which evaluated the adequacy and effectiveness of financial and operational processes.

The Company continued to strengthen its internal control environment through process improvements and increased use of digital systems. Digitalisation initiatives, including improvements in the ERP system, PROGEN and continued use of HRMS platforms, have supported better data availability, process monitoring, documentation and operational control.

These digital controls enhance transparency, improve management oversight and support timely review of business processes. The Company will continue to improve its digital control framework in line with business requirements, regulatory expectations and operational needs, thereby further strengthening governance, accountability and operational efficiency.

Human Resources Development and Industrial Relations

Strongly believing in our employees, we flourish and excel. Our people and training initiatives ensure we continue to earn that trust in the years ahead. The Company believed that effective HRD practices contributed to employee satisfaction, retention and productivity, ultimately helping the organisation achieve its goals and maintain a competitive edge in the marketplace.

Albert David Limited regularly invests in procedures to foster a positive work environment since it views its people resources as its most significant asset. The Company recognises the success and potential of its employees and offers them opportunities and addresses the challenges so that all can work as a team. Your Company strongly believes that employees are the most vital resource for sustainable growth.

We regularly realign teams at the execution level to maximise productivity and make the best use of technical expertise. Our HR arm continues to design and implement progressive policies that enhance knowledge, creativity and inclusivity. Training and development remain top priorities, ensuring that our workforce is future-ready and well-equipped to respond to customer expectations in a fast-evolving industry.

In a fast-changing business environment, HR management continuously aligns its strategies with the increasing aspirations of the workforce to increase efficiency and promote a participative work culture in the organisation. It is imperative to have robust human capital that is well-trained to face challenges while delivering quality service to customers. We believe that having committed human capital is extremely important to ensure consistent and sustainable growth of the organisation. As we move ahead, we shall continue to invest in the well-being as well as the productivity enhancement of our employees to realise the true growth potential of our organisation.

We understand the need for having a robust human capital that is well-trained to face challenges, while delivering quality products and services to the customers.

At the same time, Albert David upholds strong governance in people management. Policies such as the Code of Conduct, the Prevention of Sexual Harassment framework and the Whistle-blower mechanism empower employees to voice concerns freely. We see human empowerment not just as a philosophy but as a measurable advantage that drives productivity, innovation and loyalty.

We invest continuously in upskilling, reskilling and leadership development to prepare employees for a rapidly changing business environment. Structured training programs, merit-based recognition and inclusive growth opportunities ensure that our people remain motivated and future-ready. Industrial relations across our units have remained cordial, reflecting mutual trust and respect.

The Company remained committed to maintaining cordial industrial relations with unionised factory staff, field forces, as well as non-unionised employees, in the best interest of Your Company. Continuous efforts were made to ensure high standards of performance from employees through the adoption of best practices. During the fiscal year, the Company continued its focus on digitalisation of HR activities through its HRMS platform OfficeNet, enabling real-time data capture, improved efficiency and better workforce management, representing a significant step forward.

The total employee strength of the Company as on 31st March, 2026, stood at approximately 1,500. Together, they form a diverse and skilled workforce that powers our global expansion.

Risks and Concerns

Robust Risk Management Framework

Our robust risk management framework is designed to address multiple factors that may impact operations and growth. Key risks include global supply chain volatility, which can lead to delays in raw material sourcing; the pace of the transition in the pharmaceutical industry, as market adoption may vary across regions; currency fluctuations, arising from exposure to international operations; and regulatory compliance, which requires continuous alignment with evolving safety and environmental norms.

Like any global business, the Company faces the above-mentioned risks. Your Companys proactive risk management helps us stay resilient. The Companys facility is essential to the business and will remain so and the procedures used in the manufacturing of the drugs expose it to some risks. Furthermore, drug establishment license, safety, health, environmental and other applicable laws and regulations could change or be broken, negatively impacting operations, finances and business.

The Company continues to carry adequate insurance cover for all insurable assets against unforeseeable perils like fire, flood, earthquake, etc. The Company maintains a liability insurance policy as per the Public Liability Insurance Act provisions.

To maintain Company continuity, Albert David has a robust risk mitigation plan that monitors internal and external threats and proactively tackles issues. The Companys risk-management strategy is straightforward, consistent and unambiguous, making it possible to manage and disclose risks effectively.

Major Threats & Concerns:

1. Material costs: Supply chain challenges and elevated raw material or resource costs could adversely impact the availability and overall product cost structure, resulting in diminished margins.

ADL Mitigation - The Company has deployed alternative specifications and sourcing, regulating inventory levels for bulk discounts and locking prices to mitigate the commodity risks.

2. Geopolitical risks: Disruption could impact global supply chains, significantly straining busi- ness-as-usual operations.

ADL Mitigation - The Company continuously optimises its sourcing requirements by strengthening planning, deploying bulk buying strategies and robust supply chain planning to ensure smooth business operations.

3. Climate change: By 2026, the pharmaceutical industry will have come under intense scrutiny due to its high carbon footprint.

ADL Mitigation - For Albert David, these risks are categ orised into Physical Risks and Transition Risks. The Company continuously reviews its product portfolio to make it more resilient against the seasonal variability and climate change risk.

4. Increasing competition: Intense pressure from both large-scale generic leaders and agile niche competitors. The giants have massive R&D budgets and economies of scale that allow them to underprice smaller players in the generic market. Competitors are aggressively slashing prices in the "LVP" (Large Volume Parenterals) and IV fluid segments. Increased competition might result in irrational price behaviour by some market participants and can negatively impact the industry.

ADL Mitigation - Albert David competes with a wide range of companies across its core segments (Parenterals, Oral/Enteral and Vision Care). The Company consistently works to counter competition by producing consumer-centric products, leveraging R&D to have a differentiated drug portfolio, having strong market activation programmes and ensuring prompt and dependable supply chain to reinforce its brand.

5. Currency fluctuations: Unprecedented swings in foreign exchange rates driven by the global 5. geopolitical crisis may create short-term margin pressures from elevated material costs or depressed revenue realisations

ADL Mitigation - As of March 2026, Albert David Limited manages currency fluctuations through a mix of structural operational hedging and formal financial instruments, as Your Company exports to many countries. The Company is sensitive to the USD/INR exchange rate.

6. Regulatory approach: All regulatory authorities are looking for risk-based approach in Pharma Industry.

ADL Mitigation - Albert David Limited has started risk-based approach to mitigate any possible risk in Manufacturing Operations, Quality Control and Quality Assurance for better compliance to the regulatory guidelines.

Segment -Wise Performance

The Company operated in a single segment and therefore could not be segregated in terms of business verticals or geographical presence, in accordance with Note No. 60 to the financial statements.

During the financial year under review, F.Y. 2025-26, Albert David Limited achieved Net Sales and Gross Profit of Rs. 333.59 Crore & Rs.10.28 Crore against Rs.345.76 Crore & Rs.32.20 Crore, respectively, reported in the previous fiscal year, F.Y. 2024-25.

DETAILS OF SIGNIFICANT CHANGES (i.e CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THEREFORE:-

Particulars	2025-26	2024-25	Change (%)
Debt-Equity Ratio (in times) (Note 1)	0.07	0.03	-133.33%
Current Ratio (in times)	3.24	3.40	4.93%
Interest Coverage Ratio (in times) (Note 2)	-1.85	-17.87	89.64%
Inventory Turnover Ratio (in times)	10.00	12.22	-18.17%
Debtors Turnover Ratio (in times)	10.75	12.11	-11.23%
Operating Profit Margin (%) (Note 3)	-1.79%	-3.61%	50.41%
Net Profit Margin (%) (Note 4)	-0.45%	5.01%	-91.01%
Return on Net Worth (%) (Note 5)	-0.38%	6.27%	-93.93%

Reason for Variance (if variance is more than 25%)

Note No. 1: - Due to increase in debts without corresponding increase in equity to meet temporary fund requirements.

Note No. 2: - Due to increase in debt and reduction in profit during the year.

Note No. 3: - There have been some improvement in operating profit due to optimization of expenses.

Note No. 4:- Due to reduction in sales and increase in expenses proportionately.

Note No. 5:- please refer "Detailed Explanation Regarding Any Change In Return On Net Worth As compared To The Previous F.Y. 2024-25".

Detailed Explanation Regarding Any Change In Return On Net Worth As compared To The Previous F.Y. 2024-25

As of March 2026, Albert David Limited (ADL) experienced a significant shift in its Return on Net Worth (RONW). The downfall in RONW is driven by following reasons:-

• Sales have decreased over F.Y. 2024-25 to roughly 96.58% in F.Y. 2025-26, when assets generate less revenue but maintenance costs remains almost the same, the return on the equity invested in those assets drops.

• The loss of profitability during the year, part of which is attributable to other income has also contributed to an adverse change in return on net worth.

Cautionary Statement

The Management Discussion and Analysis Report may contain certain statements that might be considered forward-looking. These statements are subject to certain risks and uncertainties. Actual results may differ materially from those expressed in the statement with crystallisation of unforeseen predicaments in the sphere of Government policies, local, political and economic developments, risks inherent to the Company and other factors.

Dated: 12th May 2026	For and on behalf of the Board of Directors
Place: Kolkata	A.K. Kothari
	Executive Chairman
	(DIN:00051900)