Anuroop Packaging Ltd Management Discussions

1. Industry structure and developments.

The Indian packaging industry forms an integral part of the countrys manufacturing, consumption, distribution and logistics ecosystem. Packaging demand is closely associated with the production and movement of goods across sectors such as food and beverages, pharmaceuticals, FMCG, agriculture, consumer products, industrial goods, organised retail and e-commerce. The continued expansion of Indias manufacturing and consumption base is expected to support the long-term requirement for efficient and protective packaging solutions.

Source: Ministry of Statistics and Programme Implementation (MoSPI), Government of India - Provisional Estimates of Annual GDP, FY 2025-26.

MoSPI - GDP Estimates FY 2025-26

The Indian packaging industry is a priority sector under the Ministry of Commerce & Industry, with the Indian Institute of Packaging (IIP) serving as the apex body for research, training, and sustainable packaging solutions. According to IIP data released in December 2025, the sustainable packaging market in India is projected to grow from USD 145 billion in 2025 to USD 268 billion by 2031, at a CAGR of 10.4%.

According to the Press Information Bureau (PIB), Indias total exports (Merchandise and Services combined) during FY 2025-26 are estimated at US$ 863.1 billion, registering a positive growth of 4.22%, which directly benefits packaging demand from export-oriented sectors.

Macroeconomic Context (IMF & Government Sources):

- IMF Growth Projection: The International Monetary Fund (IMF) raised Indias GDP growth forecast to 7.3% for FY2025-26 (January 2026 WEO update), citing strong momentum in manufacturing and domestic consumption. (Source: Press Release Page Press Information Bureau)

- Industrial Sector Growth: As per the Economic Survey 2025-26 (PIB), the industrial sector is projected to grow by 6.2% in FY26, up from 5.9% in FY25, with manufacturing GVA growth accelerating to 7.72% in Q1 and 9.13% in Q2 of FY26.

- IMF Manufacturing Outlook: The The IMFs July 2026 World Economic Outlook Update projects Indias growth at 6.4% for FY2026-27, with manufacturing remaining a key driver amid global supply chain diversification. (Source: https://www.reuters.com/world/india/imf-raises-india-fv26-arowth-forecast-73-sees-slower-pace-next- two-years-2026-01 -19/) https://www.reuters.com/world/india/imf-raises-india-fy26-arowth-forecast-73-sees- slower-pace-next-two-vears-2026-01-19/

Global Sustainability Initiatives:

- World Economic Forum (WEF) 2026: At Davos 2026, Canopy and partners launched a US$ 2 billion finance model to scale low-carbon packaging materials, starting in India, aiming to transform paper, packaging, and textile supply chains. (https://www.weforum.ora/stories/circular-economy/here-s-why-we-should-be-bullish-on- extended-producer-responsibilitv/)

- WEF Circular Economy: The World Circular Economy Forum 2026 (WCEF2026) will be held in Gandhinagar, Gujarat (September 15-18, 2026), marking the first time this global forum is hosted in South Asia, emphasising Indias leadership in circular economy solutions.

(https://www.pib.aov.in/PressReleasePaae.aspx?PRID=2220800&lana=2&rea=3)

- Global Plastic Action Partnership (GPAP): The WEF GPAP Annual Report 2025 highlights Indias progress in establishing National Plastic Action Roadmaps to increase circularity, reduce pollution, and create green jobs in the packaging sector. (https://www.weforum.ora/stories/circular-economv/here-s-whv-we-should-be-bullish-on- extended-producer-responsibility/)

2. Opportunities and Threats.

Opportunities

Indias sustained economic activity and manufacturing growth provide a favourable long-term environment for packaging manufacturers. The countrys real GDP growth of 7.7% as per the Provisional Estimates for FY 2025- 26 reflects continued economic expansion, while growth in manufacturing and services supports demand throughout industrial and consumer supply chains.

Source: Ministry of Statistics and Programme Implementation (MoSPI), Government of India - Provisional Estimates of Annual GDP, FY 2025-26.

MoSPI - GDP Estimates FY 2025-26

The continued development of Indias logistics infrastructure provides an opportunity for packaging manufacturers. PM GatiShakti and the National Logistics Policy are intended to improve connectivity, logistics efficiency and the seamless movement of goods across the country. As supply chains become more integrated and organised, the requirement for dependable secondary and tertiary packaging is expected to remain important.

Source: Department for Promotion of Industry and Internal Trade (DPIIT), Government of India. DPIIT - PM GatiShakti & National Logistics Policy

The increasing focus on sustainable packaging presents another opportunity for paper-based packaging manufacturers. The Governments EPR framework for packaging made from paper, glass and metal promotes sustainable packaging practices and greater responsibility for recycling and end-of-life management. Corrugated packaging, being paper-based and recyclable, is well positioned to participate in this evolving packaging ecosystem.

Source: Ministry of Environment, Forest and Climate Change (MoEFCC), Government of India. MoEFCC - EPR Packaging Notification

Customisation is also an important opportunity for the Company. Customers increasingly require packaging solutions based on product dimensions, weight, strength, stacking and transportation requirements. Anuroop Packagings product portfolio includes corrugated boxes, kraft rolls, corrugated liners and corrugated sheets, enabling the Company to address diverse packaging requirements.

The Governments initiatives to improve logistics infrastructure, multimodal connectivity and supply-chain efficiency may also support the formalisation and expansion of Indias logistics ecosystem. Such developments can create opportunities for packaging companies that are able to provide reliable, consistent and application- specific packaging solutions.

Source: Department for Promotion of Industry and Internal Trade (DPIIT), Government of India. DPIIT - PM GatiShakti & National Logistics Policy

Threats

Raw material price volatility remains a significant operating consideration for corrugated packaging manufacturers. Paper and kraft paper are important inputs for the Companys product portfolio, and fluctuations in the prices or availability of these materials, together with changes in energy and transportation costs, may affect the Companys cost structure and operating margins.

The packaging industry is competitive, and manufacturers are required to balance pricing, product quality, delivery schedules, customisation and customer service. Competition from regional and organised manufacturers may result in pricing pressure and require continuous improvement in operational efficiency and customer service.

Changes in economic activity and the performance of end-user industries may also influence packaging demand. Since packaging is an integral part of the manufacturing, distribution and consumption chain, a slowdown in industrial production or consumer activity may adversely affect demand and capacity utilisation.

Source: Ministry of Statistics and Programme Implementation (MoSPI), Government of India; Anuroop Packaging Limited - official business profile. MoSPI - GDP Estimates FY2025-26

Global economic and geopolitical developments may also affect businesses through changes in energy prices, supply-chain conditions, inflation and financial-market volatility. The World Bank has identified higher energy prices and supply-chain disruptions arising from geopolitical developments as risks to Indias near-term growth outlook.

Source: World Bank - India Development Update, April 2026. World Bank - India Development Update, April 2026

3. Segment-wise or product-wise performance.

Anuroop Packaging Limited is engaged in the manufacturing and supply of corrugated packaging products. The Companys product portfolio comprises corrugated boxes, kraft rolls, corrugated liners and corrugated sheets, enabling it to address varied packaging requirements across customers and applications.

Detailed segment-wise and product-wise performance is provided in the Corporate Overview and Financial Statements sections, which form an integral part of this Annual Report.

4. Outlook

The Indian economic outlook remains supportive for businesses associated with manufacturing, consumption, logistics and supply-chain activities. According to MoSPIs provisional estimates, Indias real GDP is estimated to have grown by 7.7% during FY 2025-26, reflecting continued resilience in domestic economic activity.

Source: Ministry of Statistics and Programme Implementation (MoSPI), Government of India - Provisional Estimates of Annual GDP, FY 2025-26. MoSPI - Provisional GDP Estimates FY 2025-26)MoSPI - Provisional GDP Estimates FY 2025-26

The World Banks April 2026 India Development Update states that Indias growth accelerated to 7.6% in FY 2025-26 and projects growth of 6.6% in FY 2026-27. The World Bank continues to identify India as one of the fastest-growing major economies, while highlighting geopolitical developments, energy prices and supply-chain disruptions as important risks to the outlook. Source: World Bank - India Development Update, April 2026. World Bank - India Development Update, April 2026

The Governments continued focus on improving logistics infrastructure and reducing logistics inefficiencies is expected to support the long-term development of Indias packaging ecosystem. PM GatiShakti and the National Logistics Policy seek to strengthen multimodal connectivity, improve logistics performance and facilitate more efficient movement of goods across the country.

Source: Department for Promotion of Industry and Internal Trade (DPIIT), Government of India. DPIIT - PM GatiShakti & National Logistics Policy

The outlook for the Companys business is therefore linked to the continued expansion of manufacturing, consumption, organised distribution and logistics activities in India. Anuroop Packaging intends to leverage these opportunities by focusing on product quality, customised packaging solutions, operational efficiency, customer relationships and prudent cost management.

5. Risks and concerns.

The Company is exposed to fluctuations in the prices and availability of key raw materials used in its packaging products. Any significant increase in paper, kraft paper, energy or transportation costs may increase the Companys cost of production and may adversely affect margins if such increases cannot be adequately passed on to customers.

Demand risk may arise from changes in the economic environment and the performance of industries that consume packaging products. A slowdown in manufacturing activity, consumption, distribution or other end- user sectors could affect the Companys sales volumes and capacity utilisation.

Source: Ministry of Statistics and Programme Implementation (MoSPI), Government of India; Anuroop Packaging Limited. MoSPI - GDP Estimates FY 2025-26

The company has identified the following key risks

Risk Category	Description	Mitigation Strategy
Raw Material Price Volatility	Fluctuations in kraft paper prices impact margins.	Long-term supply contracts; price pass-through clauses.
Competitive Intensity	Fragmented market with unorganised players leads to price wars.	Focus on quality, customisation, and service differentiation.
Geographic Concentration	Heavy reliance on Western India market.	Exploring expansion into other regions.
Regulatory Risk	Environmental regulations may increase compliance costs.	Investing in sustainable practices and waste management.
Customer Concentration	Dependency on a few large clients.	Diversifying customer base across sectors.
Operational Inefficiency	High debtor turnover days and low inventory turnover.	Strengthening working capital management.

6. Internal control systems and their adequacy.

The Company has established internal financial controls with reference to its financial statements with the objective of safeguarding assets, maintaining accurate and complete accounting records, preventing and detecting errors and irregularities, ensuring appropriate authorisation of transactions and supporting the orderly and efficient conduct of business.

The internal control framework covers key areas of the Companys operations and financial reporting, including accounting and financial reporting, procurement, payments, receivables, inventory, assets and compliance. The Companys internal controls are intended to provide reasonable assurance regarding the reliability of financial reporting and the safeguarding of Company asset.

7. Discussion on financial performance with respect to operational performance.

Key highlights of the standalone and consolidated financial performance for the year ended March 31,2026, are summarized as follows:

in Lakhs)

Particulars	Standalone		Consolidated
	FY 2025-26	FY 2024-25	FY 2025-26	FY 2024-25
Revenue From Operations	309.05	390.86	1,565.78	1,832.68
Other Income	20.55	56.79	107.21	153.39
Total Income	329.60	447.65	1,672.99	1,986.07
EBITDA	77.84	142.68	661.88	838.82
Finance Cost	33.82	38.13	143.24	157.30
Depreciation & Amortisation Expense	21.27	21.27	104.71	107.17
Profit Before Tax	22.75	83.27	413.93	574.36
Current Tax Expense	7.83	22.40	101.28	127.89
Deferred Tax Expense/(Credit)	(2.81)	(1.54)	7.25	42.17
Total Tax Expense	5.02	20.86	108.53	170.06
Profit After Tax	17.73	62.41	305.40	404.29

Note: EBITDA has been calculated as Profit Before Tax + Finance Cost + Depreciation & Amortisation Expense.

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

Human resources remain an important component of the Companys manufacturing and operational capabilities. The Company recognises that a capable, committed and disciplined workforce is essential for maintaining product quality, operational continuity, customer service and overall business performance.

The Companys workforce supports its manufacturing, quality, administration, finance, sales and other business functions. The Company seeks to maintain a professional and inclusive working environment while complying with applicable labour and employment requirements.

As of March 31, 2026, the Company had a total workforce of 13 employees. We have consistently fostered a culture of inclusivity, collaboration, and performance, while ensuring a safe and conducive work environment. Our approach to human resources emphasizes merit-based recruitment, diversity, and equal opportunity.

The Company is committed to building a diverse and inclusive workforce and continues to provide opportunities for professional development, skill enhancement, and employee engagement. Going forward, the Company will continue to invest in human capital, focusing on employee well-being, training initiatives, and fostering a high- performance culture aligned with our strategic objectives.

9. 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 therefor, including:

Ratios	Figures as at 31.03.2026	Figures as 31.03.2025	at % Change From Last Year	Explanation For Change in Ratio (For More Than 25% In Comparison With Last Year)
Debtors Turnover	1.97	2.08	-5.03	Na
Inventory	1.47	1.62	-9.03	Na
Turnover
Interest Coverage	1.67	2.19	-23.74%	Na
Ratio
Current Ratio	2.66	2.22	20.07	Na
Debt Equity Ratio	0.12	0.17	-25.33	The decrease was primarily due to a reduction in the Companys debt relative to its equity during the year, resulting in lower financial leverage.
Operating Profit Margin (%)	18.30	30.80	-40.58%	The decrease was primarily attributable to lower operating profitability during the year, reflecting higher operating costs and pressure on margins.
Net Profit Margin (%)	6.66	15.86	-58.01%	The decline was mainly due to lower operating profitability, resulting in a
				reduction in profit after tax relative to revenue.
Return On Net Worth	0.87	3.09	-71.84%	The decrease was primarily due to the reduction in profitability during the year, resulting in lower returns generated on the shareholders net worth.

10. Disclosure of Accounting Treatment:

The financial statements of the Company have been prepared in accordance with Accounting Standard ("AS") notified under the Companies (Accounting Standards) Rules, 2021 read with section 133 of the Companies Act, 2013.

11. Cautionary Statement

Statement in this report describing the Companys objectives projections estimates and expectation may constitute "forward looking statement" within the meaning of applicable laws and regulations. Forward looking statements are based on certain assumption and expectations of future events. These Statements are subject to certain risk and uncertainties. The Company cannot guarantee that these assumption and expectations are accurate or will be realized. The actual results may different from those expressed or implied since the Companys operations are affected by many external and internal factors which are beyond the control of the management. Hence the Company assumes no responsibility in respect of forward-looking statements that may be amended or modified in future on the basis of subsequent developments information or events.

Source Verification Note - 25 August 2026

The principal external statistics cited in this report have been checked against current official/primary sources available as of 25 August 2026. The FY 2025-26 GDP growth figure has been aligned to MoSPIs Provisional Estimate of 7.7%; the export figure has been updated to the latest FY 2025-26 figure of US$863.1 billion reported by the Ministry of Commerce & Industry/PIB; the Economic Survey figures for industrial growth and manufacturing GVA are supported by PIB; the World Bank FY26/FY27 growth figures of 7.6% and 6.6% are supported by the April 2026 India Development Update; and the IMF FY2026-27 growth projection of 6.4% is supported by the July 2026 WEO Update. The sustainable-packaging market figure of US$145 billion in 2025 to US$268 billion by 2031 at 10.4% CAGR is attributed to the Indian Institute of Packaging.