AMS Polymers Ltd Management Discussions

INDUSTRY AND ECONOMY OVERVIEW

1. Overview

AMS Polymers Limited is an Indian chemical products company engaged in the manufacturing and trading of polyurethane (PU) chemicals and related specialty chemical products. Its product portfolio includes PU systems, PU resins, adhesives, coatings, primers, binders, sealants and other chemical products.

The Companys products cater to diverse end-use industries including footwear, automobile, construction chemicals, textile, artificial leather, flexible packaging and rubber-related applications.

During FY2025–26, the Company continued to operate in a competitive chemical and specialty-materials environment, with performance influenced by raw-material prices, demand conditions, product mix and operating costs.

2. Financial Performance

The Companys financial performance for FY2025–26 showed continued growth in revenue, although profitability remained modest.

Particulars	FY2025–26	FY2024–25	Change
Revenue from operations	109.60 crore	100.96 crore	+8.55%
Total revenue	109.63 crore	100.97 crore	+8.55%
Net profit	0.79 crore	0.77 crore	+2.60%
Basic EPS	2.39	2.33	+2.58%
Book value per share	18.27	15.86	+15.19%

The FY2025–26 revenue figures are based on the Companys reported full-year results; the FY2024–25 comparative figures are consistent with the Companys FY2024–25 reported financial performance.

Financial interpretation

Revenue increased by approximately 8.6%, demonstrating expansion in the Companys operating scale. However, net profit increased by only about 2.6%, indicating that the improvement in sales did not translate into a proportionate improvement in bottom-line profitability.

This suggests continued pressure from the Companys cost structure and the competitive nature of the chemical-products business. Managements key focus should therefore remain on improving product margins, operating efficiency and value-added product contribution.

3. Revenue Analysis

AMS Polymers generated approximately 109.6 crore of revenue in FY2025–26, compared with approximately 101.0 crore in FY2024–25.

The increase of approximately 8.6 crore represents healthy top-line growth of around 8.6%.

The growth indicates continued demand for the Companys chemical products across its various end-use applications. The diversified nature of the Companys product portfolio provides exposure to multiple industries rather than dependence on a single end market.

At the same time, the Company operates in markets where selling prices can be affected by changes in input costs and competitive conditions. Consequently, maintaining the relationship between selling prices and raw-material costs remains important for sustaining margins.

4. Profitability Analysis

The Company recorded a net profit of approximately 0.79 crore in FY2025–26, compared with approximately 0.77 crore in FY2024–25.

Although profit increased, the rate of profit growth was substantially lower than revenue growth. The approximate net profit margin was: FY2025–26: 0.72% FY2024–25: 0.76% This indicates a slight compression in net profitability despite higher revenue.

The key management priority should consequently be to improve operating leverage, optimise procurement, control conversion and administrative costs and increase the contribution from higher-value products.

5. Quarterly Operating Trend During FY2025–26

The quarterly results indicate that revenue remained relatively strong during the year.

Reported net sales were approximately:

Quarter	Net Sales
June 2025	26.69 crore
September 2025	27.44 crore
December 2025	27.0 crore
March 2026	28.50 crore

The March 2026 quarter recorded sales of 28.50 crore compared with 28.12 crore in March 2025.

The fourth quarter nevertheless produced net income of only about 0.10 crore, compared with 0.17 crore in the corresponding quarter of the previous year, demonstrating the continuing pressure on profitability.

Business and Operational Review

AMS Polymers business is diversified across several chemical applications. Its products include: PU resins and polyurethane systems Adhesives Coatings Primers and binders Sealants Chemical products for footwear Products for automobile and construction applications Products for textile, artificial leather and rubber applications

This product diversity can help reduce dependence on any single customer segment and provides opportunities to participate in multiple industrial growth markets.

The Companys operating performance remains sensitive to raw-material availability and prices, customer demand, competitive pricing and the ability to pass increased input costs through to customers.

6. Industry Outlook

The specialty chemicals and polymer-related industries continue to benefit from the increasing use of engineered materials across automotive, footwear, construction, packaging, textiles and industrial applications.

For AMS Polymers, opportunities are particularly relevant in: Increased use of polyurethane-based materials Growth in construction chemicals

Expansion of footwear and synthetic-leather applications

Demand for industrial adhesives and coatings

Increasing preference for specialised and performance-oriented chemical formulations

Development of higher-value specialty chemical products

However, the industry remains exposed to fluctuations in petrochemical-derived raw materials, intense competition, regulatory requirements and changing customer preferences.

7. Opportunities

The Company has several opportunities for future growth.

Product diversification

Expansion into higher-margin specialty chemicals, customised formulations, adhesives and coatings can improve the Companys product mix and profitability.

Expansion of customer base

Increasing penetration into automobile, construction, footwear, textile and industrial customers can support further revenue growth.

Value-added products

A greater focus on technically differentiated products may reduce dependence on price-based competition and potentially improve margins.

Capacity utilisation

Improved utilisation of manufacturing and distribution capabilities can allow revenue growth to translate into stronger operating profitability.

Export opportunities

Exploring additional international markets could diversify the Companys customer base and create new avenues for growth, subject to regulatory and commercial feasibility.

8. Risks and Challenges

Raw-material price volatility

Changes in the prices of chemical and petrochemical-based inputs can affect gross margins.

Competitive pressure

The specialty chemical market contains numerous domestic and international players. Pricing pressure may restrict the Companys ability to pass increased costs to customers.

Margin pressure

FY2025–26 demonstrates that revenue growth alone has not resulted in proportional profit growth. Improving margins remains an important challenge.

Customer concentration

Dependence on particular industries or major customers could expose the Company to fluctuations in sector-specific demand.

Regulatory and environmental requirements

Chemical manufacturing is subject to environmental, safety and regulatory requirements. Compliance costs and changes in regulation may affect operating expenses.

Working-capital requirements

Growth in sales can increase requirements for inventory and trade receivables. Efficient working-capital management will therefore remain important.

9. Liquidity and Financial Position

The Company ended FY2025–26 with reported net worth of approximately 6.03 crore, compared with approximately 5.23 crore in FY2024–25, according to available FY2026 financial data. T The Company Check

The improvement in net worth indicates accumulation of shareholders funds over the period.

The Company should nevertheless continue to focus on maintaining adequate liquidity, efficient collection of receivables and prudent management of inventories and working capital.

11. Key Financial Ratios

Available FY2025–26 data indicate:

Ratio / Indicator	FY2025–26
Revenue growth	8.55%
Net profit growth	2.60%
Basic EPS	2.39
Book value/share	18.27
Inventory turnover	33.11x
EV / Revenue	0.28x
EV / EBITDA	13.80x
Price / Book Value	2.64x

The Companys EPS increased from 2.33 to 2.39, while book value per share increased from 15.86 to 18.27

12 . Management Assessment

FY2025–26 can be characterised as a year of continued revenue growth but relatively limited improvement in profitability.

The Companys revenue increased by approximately 8.6%, demonstrating resilience in its business operations. However, the relatively small increase in net profit highlights the importance of improving operating efficiency and protecting margins.

Going forward, managements focus should be directed toward: Increasing sales of higher-margin products. Improving procurement efficiency. Controlling manufacturing and operating expenses. Increasing customer and industry diversification. Strengthening working-capital management. Developing technically differentiated chemical formulations. Expanding into attractive domestic and export markets.

13 . Future Outlook

The outlook for AMS Polymers remains linked to the growth of industries consuming polyurethane, adhesives, coatings and specialty chemical products.

The Companys diversified product applications provide a platform for future expansion. Revenue growth achieved during FY2025–26 provides a positive base for the next financial year.

The principal opportunity is to convert future revenue growth into stronger earnings by improving product mix and operating margins.

Management should therefore balance growth objectives with disciplined cost control and working-capital management.

14. Road Ahead

Despite the pandemic situation, the Indian chemical industry has numerous opportunities considering the supply chain disruption in China and the trade conflict between the US, Europe and China. Anti-pollution measures in China will also create opportunities for the Indian chemical industry in specific segments.

Additional support, in terms of fiscal incentives, such as tax breaks and special incentives through PCPIRs or SEZs to encourage downstream units will enhance production and development of the industry. The dedicated integrated manufacturing hubs under the Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIR) policy to attract an investment of Rs. 20 lakh crore (US$ 276.46 billion) by 2035.

To bring about structural changes in the working of the domestic chemical industry, future investments should not only focus on the transportation of fuels such as petrol and diesel but also on crude-to-chemicals complexes or refineries set up to cater to the production of chemicals.

15. SWOT ANALYSIS

Strength/Potentials Weakness/Problems

Investment Incentive Policy	Less used of technical niche
Educational Supply	Inability of Production diversification
Industrial development strength	Improper productivity improvement tools implementation
Strong Local Market potential	Relatively small scale by international standards
Guiding national policies and strategies	Insufficient hazardous waste processing facilities
Young and talented workforce upcoming	Insufficiency of awareness on R&D
Availability of precious raw materials	Insufficiency of chemical consuming industrial sectors
Opportunities/promises	Threats/Pressures
Human Resource availability	High Chemical Producing companies competition
Government focus on investment policies	Insufficiency of raw matter inputs
Innovation and Collaboration	Environmental impact- analysis
Increasing Demand for New Products	Insufficiency of financial aids and corpus

16. RISK & CONCERNS

The Companys success largely depends upon the quality and competence of its management team and key personnel. Attracting and retaining talented professionals is therefore a key element of the companys strategy. The resignation or loss of key management personnel may have an adverse impact on the Companys business, its future financial performance and the result of its operations.

The risks and concerns for Indias chemical industry include environmental pollution (air, water, soil, and greenhouse gases), safety hazards leading to accidents, regulatory complexities and enforcement gaps, dependency on imported raw materials and resulting supply chain disruptions, an infrastructure deficit hindering logistics and operations, a shortage of skilled labor, intense market competition, and increasing pressure to adopt sustainable practices and ESG standards.

17. INTERNAL CONTROL SYSTEM

The Company has adequate internal audit and control systems. Internal auditors comprising of professional firm of Chartered Accountants has been entrusted with the job to regular conduct the internal audit and report to the management the lapses, if any. Both internal auditors and statutory auditors independently evaluate the adequacy of internal control system. Based on the audit observations and suggestions, follow up, remedial measures are being taken including review thereof. The Audit Committee of Directors in its periodical meetings, review the adequacy of internal control systems and procedures and suggests areas of improvements.

The organization is well structured and the policy guidelines are well documented with pre-defined authority. The Company has also implemented suitable controls to ensure that all resources are utilized optimally, financial transactions are reported with accuracy and there is strict adherence to applicable laws and regulations. The Company has put in place adequate systems to ensure that assets are safeguarded against loss from unauthorized use or disposition and that transactions are authorized, recorded and reported.

The Audit Committee of Directors in its periodical meetings reviews the adequacy of internal control systems and procedures and suggests areas of improvements. Needless to mention, that ensuring maintenance of proper accounting records, safeguarding assets against loss and misappropriation, compliance of applicable laws, rules and regulations and providing reasonable assurance against fraud and errors will continue to remain central point of the entire control system.

18. HUMAN RESOURCES

Human resource is considered as key to the future growth strategy of the Company and looks upon to focus its efforts to further align human resource policies and processes to meet its business needs. The Company aims to develop the potential of every individual associated with the Company as a part of its business goal. Respecting the experienced and mentoring the young talent has been the bedrock for the Companys growth.

Human resources are the principal drivers of change. They push the levers that take futuristic businesses to the next level of excellence and achievement.

19. CAUTIONARY STATEMENT

Investors are cautioned that this discussion contains statements that involve risks and uncertainties. Words like anticipate, believe, estimate intend, will, expect and other similar expressions are intended to identify "Forward Looking Statements". The company assumes no responsibility to amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events. Actual results could differ materially from those expressed or implied. Important factors that could make the difference to the Companys operations include cyclical demand and pricing in the Companys principal markets, changes in Government Regulations, tax regimes, economic developments within India and other incidental factors.

20. Overall Conclusion

AMS Polymers Limited delivered moderate top-line growth during FY2025–26, with revenue increasing from approximately

101 crores to 109.6 crore.

However, profitability remained subdued, with net profit increasing only marginally from approximately 0.77 crore to 0.79 crore.

The Companys key strategic challenge is therefore not only to grow revenue but also to improve the quality and profitability of that revenue.

With its presence across polyurethane systems, adhesives, coatings, sealants and related chemical applications, the Company has opportunities to benefit from industrial demand and product diversification. Stronger margins, efficient cost management, better working-capital discipline and greater emphasis on value-added products will be critical to improving shareholder returns.

	For and on Behalf of the Board of
	AMS Polymers Limited
	(Formerly, Sai Moh Auto Links Limited)
	Sd/-
	(Anand Kumar)
Date: 03rd September, 2026	Managing Director
Place: New Delhi	DIN: 01381489