Amco India Ltd Management Discussions

INTRODUCTION:

The Management of Amco India Limited present the Management Discussion and Analysis Report (MDA Report) for the financial year ended 31st March, 2026 providing an overview of the Companys performance during the year under review, along with its outlook for the coming period.

The key purpose of this report is to present the Managements perspective on significant developments in the business and economic environment, the opportunities and challenges encountered by the Company, and an assessment of its operational and financial performance. The report also covers the Companys internal control framework, risk management practices, and key initiatives undertaken in the area of Human Resources and organisational development.

The outlook and forward-looking statements contained in this report are based on the Managements assessment of the prevailing economic, industry and business conditions. However, actual results and future performance may vary materially from those expressed or implied herein due to various economic, market, regulatory, operational and other factors, many of which may be beyond the Companys control.

1. INDUSTRY STRUCTURE AND DEVELOPMENT:

Aluminium Foil

India is one of the leading producers of aluminium foil, catering extensively to the requirements of diverse sectors, particularly pharmaceuticals, flexible packaging, Tobacco & Confectionery Products and Industrial Applications. At a global level, aluminium foil markets were influenced by volatility in energy and raw material costs, supply chain disruptions, and international trade dynamics. However, India benefited from its strong domestic bauxite reserves, integrated aluminium capacity, and increasing shift towards value-added foil products. In FY 2025-26 the industry has also experienced a structural push towards sustainability and circular economy practices. Overall, the aluminium foil industry is poised to remain on a positive trajectory, backed by domestic consumption growth, increasing exports, and government support. The industry is also witnessing a gradual transition towards higher value-added products such as laminated foils, specialty foils for medical and dairy applications, and foil-based flexible packaging solutions. Additionally, rising awareness of eco-friendly packaging, regulatory emphasis on recyclable materials, and substitution of plastics with aluminium foils in various applications created long-term growth opportunities.

PVC Films & Sheetings

During the Financial year 2025-26, the industry witnessed a mix of challenges and opportunities. On the demand side, growth was driven by the expansion of the packaging sector, increasing usage of PVC films in decorative and protective applications, and rising demand from healthcare and pharmaceutical packaging. The construction and infrastructure sector also contributed significantly to demand for PVC sheeting in flooring, wall coverings, and other protective applications. On the supply side, the industry faced volatility in raw material prices, particularly PVC resins, due to fluctuations in crude oil and petrochemical markets, as well as global supply chain disruptions. The industry also continued to witness pressure from imports, particularly from China and other low-cost manufacturing countries, creating a highly competitive environment for domestic manufacturers.

2. OPPORTUNITIES & THREATS, RISKS & CONCERNS:

Aluminium Foil:

India continues to represent a promising and steadily expanding market for aluminium foil, supported by its extensive use across pharmaceuticals, food and beverages, personal care, and flexible packaging applications. For FY 2025–26, the India aluminium foil packaging market is estimated at approximately USD 1.43 billion and is projected to grow at a CAGR of around 5.8% through 2030. The growth is expected to be supported by increasing demand for lightweight, recyclable and high-barrier packaging solutions, particularly across the pharmaceutical and food sectors.

The Company expects demand for domestically manufactured aluminium foil to strengthen over the coming years, supported by the expansion of pharmaceutical manufacturing capacities and the increasing adoption of aluminium-based packaging solutions. The growing consumption of packaged foods, rising healthcare expenditure and greater emphasis on product protection and shelf life are also expected to contribute to the expansion of the domestic aluminium foil market.

Indias pharmaceutical industry remains a key growth driver for aluminium foil packaging. The domestic pharmaceutical market is currently valued at approximately USD 60 billion and is projected to reach around USD 130 billion by 2030 reflecting sustained growth in healthcare demand, manufacturing capacity and pharmaceutical consumption. The increasing requirement for secure, durable and sustainable packaging solutions for medicines, including blister and strip packaging, is expected to further support the adoption of aluminium foil in the Indian market.

PVC Films & Sheetings:

PVC films and sheets, owing to their versatility, recyclability, and favorable environmental footprint, have wide applications in the packaging industry. The global PVC films and sheets market was valued at approximately USD 29.8 billion in 2025 and is projected to grow at a CAGR of around 3.3% over the forecast period. For FY 2025–26, the market is estimated to reach approximately USD 30.8 billion, supported by rising demand across key end-use industries such as packaging, construction, automotive, healthcare, and consumer goods. Increasing adoption of PVC films and sheets in flexible packaging, surface protection, interior applications, and other industrial uses is expected to further support market growth. This growth is likely to provide opportunities for the Company in expanding its product applications and market presence.

Risks & Concerns:

While the long-term outlook remains positive, the industry continues to face challenges such as volatility in raw material prices, increasing competition from both domestic and international players, and regulatory changes relating to environmental norms. Currency fluctuations and global economic uncertainties may also impact input costs and export competitiveness. The Company remains focused on mitigating these risks through strategic sourcing, efficiency improvements, and exploring value-added product segments.

Company Outlook:

Considering the strong growth potential in both aluminium foil and PVC film markets, the Company is well-positioned to leverage these opportunities through capacity enhancement, product diversification, and a sharper focus on quality and innovation. At the same time, proactive risk management strategies are being implemented to address industry challenges, ensuring sustainable growth and long-term value creation for stakeholders.

3. COMPANYS PERFORMANCE (PRODUCT WISE):

ALUMINIUM FOIL: The Company has executed orders for Packaging Industries, Pharmaceutical Industries, Automobile Industries etc. The total revenue of the Company from Aluminium Foil during the financial year under review i.e 2025-26 is INR 11,013.62/- (Rs. in Lakhs) as against the revenue of INR 9,666.63/- (Rs. in Lakhs) during the previous financial year 2024-25.

PVC FILMS & SHEETINGS: The performance in the PVC Films & Sheetings segment has shown a downfall during the year under review. The revenue from PVC films & Sheetings for the financial year 2025-26 is Nil against the revenue of the financial previous year 2024-25 which was also Nil.

4. OUTLOOK:

Aluminium foil is increasingly recognized as a sustainable alternative to several non-biodegradable products such as polyester, LD and HD films, owing to its superior barrier and protective properties. It continues to play a critical role in the packaging sector, particularly in pharmaceuticals, where safety and product integrity are essential. India is one of the key producers of aluminium foil in the region, with established demand across flexible packaging, food, chemicals and pharmaceutical industries. In the packaging industry, aluminium foil is gradually replacing polyester due to its higher efficiency in preserving product quality. Changing consumer preferences, the rise in ready-to-eat food consumption and confectionaries, along with growing pharmaceutical requirements, are expected to drive sustained demand for aluminium foil in the years ahead.

With an improving industrial environment and supportive government policies, the Company foresees growth opportunities in both domestic and international pharmaceutical markets, which will contribute to an increase in foil consumption. The Company remains focused on consolidating its position as a reliable supplier to the pharmaceutical packaging segment and is working towards enhancing capacity in aluminium foil production and coating operations.

5. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

Amco India Limited has established a comprehensive framework of internal controls and risk management practices designed to safeguard its assets, ensure accuracy and reliability of financial reporting, and secure compliance with applicable laws and regulations. The Companys risk management framework integrates internal controls with its business processes and is aligned to the nature, scale and complexity of its operations.

The internal control systems are structured to promote operational efficiency, optimum utilization of resources, adherence to established policies, and timely identification of potential risks and opportunities. These systems also ensure that regulatory requirements are duly complied with across all business segments.

The Audit Committee of the Board periodically reviews the effectiveness of internal controls, audit plans, risk assessments, and other significant audit observations. It also evaluates the adequacy of mitigation measures adopted by the management. The internal audit function, conducted by independent professional auditors, provides assurance on the robustness of internal processes and highlights areas for improvement. The recommendations arising from such audits are considered and addressed appropriately.

The Company recognizes the importance of a sound internal control environment in achieving its strategic objectives, safeguarding stakeholder interests, and supporting sustainable growth. Accordingly, Amco India Limited continues to strengthen its control systems to meet evolving business and regulatory requirements, ensuring transparency, accountability and long-term value creation.

6. FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

Amco India Limited continues to emphasize maintaining adequate liquidity and ensuring timely availability of capital at an optimum risk-adjusted cost to support its business operations. The Company has aligned its financial strategy with operational requirements to ensure sustainable growth and efficient resource utilization. The detailed financial performance of the Aluminium Foil and PVC Films & Sheetings segments is presented in the Annual Report under the head Segmental Reporting.

7. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS:

The Company firmly believes that its people are the cornerstone of its success and represent a key source of sustainable competitive advantage. The human resource philosophy of the Company is centered on attracting, developing and retaining the right talent, while fostering a culture of performance, responsiveness and accountability.

During the year under review, the Company had 79 permanent employees. The Company continued to strengthen its human resource management systems and practices by providing structured training and development opportunities, both through in-house programs and external platforms, aimed at enhancing technical competencies as well as managerial skills across functional areas.

The Company maintained a strong focus on employee engagement, performance enhancement and creating an enabling environment to drive productivity and innovation. Industrial relations during the year remained cordial and harmonious across all locations of operation. With a committed and capable workforce, the Company is well-positioned to meet future challenges and pursue its long-term growth objectives with confidence.

8. SIGNIFICANT CHANGES:

The changes in the Key Financial Ratios of the Company during the year are provided below.

Particulars	Current FY 2025-26	Previous FY 2024-25	YoY Change (%)	Reason for change
Current Ratio	1.75	1.95	-10.27	There is a very nominal change.
Debtor Turnover Ratio	6.84	6.85	-0.21	There is a very nominal change.
Inventory Turnover Ratio	7.01	8.66	-19.01	There is a very nominal change.
Debt Equity Ratio	0.34	0.34	0.56	There is a very nominal change.
Return on Equity Ratio	0.88%	5.13%	-4.25	There is a very nominal change.
Interest Coverage Ratio	2.07	4.14	-50.12	The ratio has decreased due to a decline in EBIT in FY 2025-26.
Operating Profit Margin Ratio	-1.26%	-1.79%	0.53	The ratio has decreased due to a decline in operating profit in FY 2025–26.
Return on Net Worth	4.14%	9.26%	-5.11	The ratio has decreased due to a decline in EBIT in FY 2025-26.
Net Profit Ratio	0.29%	1.79%	-1.50	The ratio has decreased due to a decline in Net profit in FY 2025–26.

9. NEW PRODUCT DEVELOPMENT:

The flexible packaging industry has witnessed increased usage of aluminium foil as a preferred material for products traditionally packed in alternative substrates, such as Gutkha and Pan Masala. Recognizing this trend, the Company has successfully positioned itself as a supplier of aluminium foil catering to diverse and high-demand applications. The Company now supplies aluminium foil to leading players in the market for use in cigarette foil packaging, milk powder packaging, and packaging of medical and surgical equipment. This diversification has strengthened the Companys product portfolio and enhanced its presence across multiple industries.

10. BUSINESS INITIATIVES:

Amco India Limited remains committed to delivering sustainable and superior performance in a dynamic and competitive global environment. The Company recognizes that consistent growth requires a combination of sound strategic planning and disciplined execution. In line with this vision, the Company has undertaken several new initiatives across both its business segments, namely Aluminium Foil and PVC Films/Sheetings. These initiatives are directed towards entering new markets, enhancing production capabilities, and focusing on higher value-added products to strengthen market presence, improve operational efficiency, and deliver long-term value to stakeholders.

11. MANAGEMENTS PERCEPTION OF RISKS:

The Company recognizes that its operations are subject to exposure from various business, assets, and financial risks. A structured framework is in place to identify, monitor, and mitigate such risks in a timely and effective manner.

Business Risks:

In relation to Aluminium Foil, PVC Films, and Sheetings, the Company is exposed to risks arising from market fluctuations, volatility in raw material prices, and changes in import duty structures. The Company actively monitors industry trends, supply chain dynamics, and regulatory changes to mitigate the impact of such risks.

Assets Risks:

The Companys physical assets are exposed to potential risks such as accidents, fire, natural calamities, and other unforeseen events. To safeguard against such exposures, the Company maintains comprehensive insurance policies to ensure maximum indemnity in the event of loss. Further, it follows a system of continuous evaluation and updation of insurance coverage to ensure that conventional risks are adequately and prudently covered.

12. APPRECIATION & DEPRECIATION OF RUPEE AGAINST US $:

In case of Aluminium Foil, the currency fluctuation had significant impact on the products sale in the market.

13. RESOURCES:

Material:

For Aluminium Foil, India has abundant deposits of bauxite, ensuring steady availability of the primary raw material. In the case of PVC Films & Sheetings, while raw materials such as PVC resin, DOP, stabilisers and fillers are generally available, the Company has faced challenges due to fluctuations in PVC resin prices, which impact cost structures. For Non-Woven products, the primary raw materials are PP granules and PP pigments, both of which are sufficiently available without any scarcity concerns.

Capital:

The Company continues to require additional funds to meet its working capital needs and long-term capital requirements in order to support enhanced production capacity and higher sales growth.

PVC Films & Sheetings:

PVC Films & Sheetings enjoy wide applications across diverse industries such as automobiles, stationery, luggage, and electrical insulation. Their inherent fire-retardant properties further strengthen demand.

14. CAUTIONARY STATEMENT:

The Statements made in the Management Discussion and Analysis describing the Companys objectives, expectations, or projections may be "forward-looking statements" within the meaning of applicable securities laws and regulations. The actual results may differ materially from those expressed or implied due to various factors. These include, but are not limited to, fluctuations in global and domestic demand-supply conditions impacting selling prices of finished goods, volatility in input availability and costs, changes in government policies and regulations, alterations in tax laws, economic developments within and outside the country, and other incidental factors such as litigation, industrial relations, and business environment uncertainties.

Date: 27.08.2026

Place: Noida, U.P

For and on behalf of the Board of Directors

sd/-

Rajeev Gupta

Chairman & MD

DIN: 00025410

Add: C 53-54, Sector 57,

Noida, U P 201301.

sd/-

Vidhu Gupta

Director

DIN: 00026934

Add: C 53-54, Sector 57,

Noida, U P 201301.