Bhageria Industries Ltd Management Discussions

GLOBAL ECONOMIC OVERVIEW

During FY 2025-26, the global economy grew at a moderate pace of around 3%. While inflation economic recovery was uneven across regions. Central banks in major economies gradually reduced interest rates to support growth and consumer spending.

Many companies remained cautious about making new investments due to economic uncertainty and higher borrowing costs in previous years. Businesses continued to diversify their supply chains by reducing dependence on a single country and adopting the China Plus One strategy.

Global energy prices, especially crude oil, remained volatile, affecting the cost of chemicals and raw materials. Freight and logistics costs also fluctuated due to shipping disruptions in key trade routes, increasing the overall cost of imports and exports.

European manufacturing activity remained weak because of high energy costs and strict environmental regulations. In contrast, emerging economies in Asia and Latin America continued to grow and support global demand.

Governments across the world increased their focus on sustainability and carbon emissions, leading to stricter environmental regulations and carbon-related trade measures. Several countries also imposed anti-dumping duties and trade restrictions to protect domestic industries.

Currency fluctuations against the US Dollar created challenges for export-oriented businesses. At the same time, companies increasingly adopted digital technologies and Artificial Intelligence to improve efficiency and reduce operating costs.

Overall, FY 2025-26 was a year of cautious growth, requiring businesses to remain flexible, efficient, and focused on cost management.

INDIA ECONOMIC OVERVIEW

Standing out as a global macroeconomic beacon, India registered a resilient GDP growth rate of approximately 7.2% to 7.4% in FY 2025-26. This growth trajectory was heavily anchored by the Government of Indias aggressive capital expenditure focus on multi-modal logistics, ports, and industrial corridors. Domestic consumption remained structurally sound, driven by a recovering rural economy following favourable monsoon patterns and robust urban wage growth. The Reserve Bank of India transparent (RBI) managed a calibrated monetary balance, successfully tapering headline retail The Indian manufacturing sector benefited immensely from targeted fiscal policies and the progressive implementation of Production Linked Incentive (PLI) frameworks. Local commercial credit growth expanded dynamically, supported by structurally cleaned bank balance sheets and high corporate credit ratings. The countrys foreign exchange reserves remained robust at over USD 650 Billion, providing a substantial macroeconomic cushion against global financial shocks. Indias corporate tax regime and ease-of-doing-business overhauls continued to position the nation as a premier direct investment hub in South Asia. Domestic energy eased in many countries, security was bolstered by an optimized mix of long-term coal supply networks, imported crude parity and rapid green energy integration. Rapid digital tax collection frameworks, through GST, recorded all-time high monthly collections, confirming deep formalization within supply chains. Urbanization trends and an expanding middle class accelerated domestic demand for consumer durables, apparel, and construction materials. Despite high global volatility, the Indian Rupee exhibited superior stability against the US Dollar compared to peers, benefiting import-dependent processors. Rising domestic logistics costs, however, emerged as an operational challenge, prompting rapid implementation of national dedicated freight rail linkages. Private sector capital expenditure began showing definitive revival signs, shifting from maintenance investments to multi-year capacity additions. Backed by solid institutional macro-variables, India effectively solidified its position as a highly predictable, high-growth industrial hub during the fiscal year.

GLOBAL REACTIVE DYES & DYE INTERMEDIATES INDUSTRY

The global market for Reactive Dyes and Dye Intermediates experienced a volume-driven demand revival in FY 2025-26, supported by rebounding global textile utilization rates. Total global valuation for reactive colorants reached new baselines, driven by their superior bonding properties on cotton, wool, and blended fibers. Strict environmental enforcements across legacy manufacturing hubs in China caused frequent structural output disruptions, shifting international order books. Global apparel brands aggressively enforced strict Zero Discharge of Hazardous Chemicals (ZDHC) and OEKO-TEX compliance mandates down the chemical supply chain. The global dye intermediates market experienced notable margin pressures due to input cost movements in fundamental aromatic feedstocks like Benzene and Naphthalene. The integration of continuous flow chemistry and high-yield synthesis processes became standard among front-runner global producers looking to counter manual labor costs. Geopolitical realignments caused international textile manufacturing centers to shift toward Bangladesh, Vietnam, Turkey, and Central America, altering distribution routes. Storage and safety parameters across international ports became stringent, raising compliance overheads for international hazardous intermediate transit. Western buyers increasingly favored suppliers offering carbon footprint profiling feedstocks. High-performance to well within its comfortable target band. reactive colorants, which consume less water and fix rapidly at lower temperatures, outpaced conventional variants in market growth. Pricing dynamics for primary intermediaries experienced short-term variations, requiring agile pricing models from primary chemical suppliers. Global consolidate-and-build moves increased, with tier-1 manufacturers acquiring localized blending units closer to major textile consumption hubs. Extended container transit lead times forced global chemical distributors to move away from just-in-time purchasing toward building buffer inventories. The evolution of digital ink jet printing textiles expanded the specialized requirements for high-purity, ultra-filtered dye inputs globally. Consequently, the global sector in FY 2025-26 rewarded technologically compliant, large-scale manufacturers capable of providing supply continuity.

INDIAN DYES & DYE INTERMEDIATES INDUSTRY - OVERVIEW

The Indian Dyes and Dye Intermediates sector maintained its status as a critical global supplier, accounting for a commanding share of international colorant production. The domestic industrys core operational strength remained concentrated in localized chemical clusters across Gujarat and Maharashtra, enabling robust raw material access. Indian manufacturers capitalized on shifting global supply preferences, securing long-term supply relationships with international chemical conglomerates. The sector witnessed a strong performance due to its deep integration into domestic texturizing, weaving, and leather processing end-markets. For foundational intermediates like H-Acid, Indian production plants leveraged economies of scale to sustain steady export volumes despite global pricing headwinds. The market for Gamma Acid saw consistent demand, driven by specialized applications in deep-shade reactive black and red dye synthesis. Vinyl Sulphone production capacities operated at stable utilization, supported by steady domestic consumption and consistent off-take from overseas buyers. The supply ecosystem for amino naphthalene derivatives, including Tobias Acid and Sulpho Tobias Acid (STA), maintained stability due to improved local sourcing of key inputs. Demand for functional derivatives like Sulpho Vinyl Sulphone (SVS) grew, applications in sophisticated polymer reflecting and surfactant formulations. Strict state-level pollution control protocols and Common Effluent Treatment (CETP) upgrades raised entry barriers, favoring organized, well-capitalized corporations. The industry managed input cost fluctuations effectively, utilizing domestic supply linkages for critical inputs like caustic soda, chlorine, and nitric acid. Indian manufacturers increased their investments in automation and green chemistry practices to meet strict international supply-chain audits. Working capital cycles in the industry remained intensive, requiring disciplined credit management and efficient inventory control systems. Expanding domestic processing hubs boosted internal trade volumes, reducing the industrys historic, single-source reliance on export revenues. Overall, the domestic sector demonstrated its maturity in FY 2025-26 by maintaining supply reliability, high quality, and regulatory compliance.

OUTLOOK FOR FY 2026-27

The outlook for the dyes and dye intermediates industry remains positive. Demand from textiles, inks, coatings, paper, and specialty applications is expected to grow steadily. India is likely to strengthen its position as a key global supplier due to its manufacturing scale, integrated supply chain, and increasing focus on sustainability.

Manufacturers that invest in environmental compliance,

- process efficiency, product innovation, and export market diversification are expected to be better positioned to benefit from future growth opportunities. This is particularly relevant for companies which continue to leverage Indias growing role in the global chemical supply chain.

GLOBAL SOLAR ENERGY MARKET OVERVIEW

At COP30, global climate ambition was reaffirmed with nations committing to mobilise USD 1.3 trillion annually by 2035 for climate action and tripling adaptation finance. However, the absence of a binding fossil fuel phase out roadmap and the continued gap between pledges and implementation drew criticism from developing nations and climate advocates alike.

In 2025, global renewable capacity additions reached a new record of 664 GW, with solar PV accounting for nearly 510 GW of that the single largest contributor to new capacity added worldwide. The global solar fleet crossed the 3,000 GW milestone in early 2026, tripling in just four years. Asia, led by Chinas 382 GW of additions, continued to dominate installations, while India emerged as the worlds second- largest solar growth market with 45.7 GW added in 2025.

Despite record 2025 additions, the market is entering a phase of consolidation. The 2026 is expected to see a temporary decline, driven largely by policy changes in China & other countries and rising grid integration challenges across mature markets. However, this is widely viewed as a short-term adjustment rather than a structural shift. Meanwhile, geopolitical tensions and energy security concerns are simultaneously pushing more nations to accelerate domestic renewable programmes. Despite near-term friction, solars cost advantage and its growing role in national energy security strategies ensure that the long-term direction of travel is clear.

SOLAR ENERGY INDUSTRY OUTLOOK

The global solar market is on a robust growth trajectory, with solar PV set to dominate renewable capacity additions worldwide through 2030, driven by falling costs and strong policy support. India is on course to become the second-largest renewables growth market globally, after China, and is expected to comfortably reach its ambitious 2030 targets. Domestically, a deep project pipeline, PLI-backed manufacturing, and emerging demand from green hydrogen and data centers will open new growth avenues. While grid infrastructure remains a near-term challenge, the long-term outlook for Indias solar industry remains exceptionally compelling.

INDIAN SOLAR ENERGY MARKET OVERVIEW

Indias solar energy sector maintained strong growth momentum during FY 2025-26, supported by favourable government policies, rising power demand, increasing investments, and continued cost competitiveness. Solar power remained the leading contributor to renewable energy capacity additions, with cumulative installed solar capacity surpassing 150 GW during the year. This propelled India past the United States in annual solar additions, making it the worlds second-largest solar growth market globally. The country also achieved a record addition of 55.3 GW of non-fossil fuel power capacity during FY 2025-26, taking total installed non-fossil fuel capacity to approximately 283 GW. Government initiatives aimed at achieving 500 GW of non-fossil fuel capacity by 2030, coupled with investments in transmission infrastructure, energy storage, and domestic manufacturing, continue to strengthen the sectors growth prospects. The increasing adoption of Battery Energy Storage Systems (BESS), rooftop solar, and utility-scale projects is expected to further enhance renewable energy integration and grid reliability.

With a robust project pipeline, supportive policy environment, and growing demand for clean energy, Indias solar energy sector remains well-positioned to contribute significantly to the countrys energy security, economic growth, and sustainability objectives.

GLOBAL PHARMACEUTICAL INDUSTRY - OVERVIEW

The global pharmaceutical industry continued to demonstrate resilient growth during FY 2025-26, driven by increasing healthcare expenditure, ageing populations, rising incidence of chronic diseases, and growing demand for affordable medicines. The Active Pharmaceutical Ingredients (API) segment remains a critical component of the pharmaceutical value chain, supported by increasing outsourcing activities, supply chain diversification initiatives, and a growing preference among global pharmaceutical companies to reduce dependence on single-country sourcing.

The global focus on healthcare accessibility, specialty therapies, nutraceuticals, and regulatory compliance continues to create opportunities for quality-focused API manufacturers. Furthermore, increasing investments in research, manufacturing capabilities, and supply chain resilience are expected to support long-term growth in the pharmaceutical sector. Demand for generic medicines and cost-effective APIs remains strong across both developed and emerging markets.

INDIAN PHARMACEUTICAL INDUSTRY - OVERVIEW

India continues to strengthen its position as one of the worlds leading pharmaceutical manufacturing destinations and remains a key supplier of generic medicines and Active Pharmaceutical Ingredients (APIs) to global markets. The Indian pharmaceutical industry is the third largest globally by volume and among the largest suppliers of generic medicines worldwide.

Government initiatives aimed at promoting domestic API manufacturing, enhancing self-reliance in critical bulk drugs, and strengthening pharmaceutical infrastructure continue to support industry growth. Increasing healthcare awareness, expanding medical coverage, rising pharmaceutical exports, and Indias growing importance in global supply chains are expected to provide sustained momentum to the sector.

INDIAN PHARMACEUTICAL INDUSTRY - OUTLOOK

The outlook for the Indian pharmaceutical API industry remains positive, supported by increasing healthcare expenditure, rising prevalence of chronic and lifestyle-related diseases, growing demand for generic medicines, and continued focus on healthcare accessibility. Government initiatives promoting domestic API manufacturing, coupled with global supply chain diversification strategies are expected to create significant growth opportunities for Indian API manufacturers.

With Indias growing prominence as a preferred pharmaceutical manufacturing hub, increasing export opportunities, and continued emphasis on quality and regulatory compliance, the Company remains optimistic about the long-term growth prospects of its API business. The Company continues to focus on operational excellence, product quality, regulatory adherence, and customer-centric solutions to strengthen its market position and capitalize on emerging opportunities in both domestic and global markets.

COMPANY OVERVIEW

Bhageria Industries Limited is a diversified business enterprise with interests spanning specialty chemicals, renewable energy, and pharmaceuticals. Established in 1989, the Company is a leading manufacturer of dyes and dye intermediates, supported by modern manufacturing facilities located at Vapi, Gujarat and Tarapur, Maharashtra. As a recognized export- oriented organization, the Company serves customers across domestic and international markets, with exports contributing significantly to its overall revenue.

The Companys growth is driven by a strong focus on innovation, quality, operational excellence, and sustainability. Its in-house research and development capabilities support product development, process improvement and environmental stewardship enabling the Company to meet evolving customer requirements while maintaining high quality standards. The Company continues to strengthen its market position through customer-centric solutions, technological advancement and efficient manufacturing processes.

As part of its long-term growth strategy, Bhageria has diversified into renewable energy through utility-scale and rooftop solar projects and has also expanded its presence in the pharmaceutical sector through strategic partnerships in Active Pharmaceutical Ingredients (APIs). Supported by a strong business foundation, prudent management practices, and a commitment to sustainable development, the Company remains well-positioned to create long-term value for its stakeholders and capitalize on emerging growth opportunities across its business segments.

ANALYSIS OF FINANCIAL PERFORMANCE

STANDALONE PERFORMANCE FOR THE YEAR ENDED MARCH 31,2026:

During FY 2025-26, the Company achieved strong growth in its business operations despite a challenging operating environment marked by raw material price volatility, higher

logistics costs, and geopolitical uncertainties impacting global supply chains. Total Income increased significantly to Rs.880.56 Crore from Rs.604.07 Crore in the previous year, registering a growth of 45.77%, driven by improved demand across domestic and export markets and higher sales volumes across key product segments.

EBITDA for the year stood at 02.25 Crore as compared to Rs.90.82 Crore in FY 2024-25, while Profit After Tax increased to Rs.50.30 Crore from Rs.42.27 Crore in the previous year. Although profitability margins were impacted by fluctuations in input costs and competitive market conditions, the Company maintained healthy earnings through operational efficiencies, prudent cost management, and improved capacity utilization.

The Board of Directors has recommended a Final Dividend of Rs.2.50 per equity share of face value Rs.5 each for FY 2025- 26, representing a 50% dividend on the paid-up equity share capital of the Company, subject to shareholders approval.

(Rs. in Crore)

PARTICULARS	FY 2025-26	FY 2024-25
Total Income*	880.56	604.07
EBITDA	102.25	90.82
EBITDA Margin (%)	11.73	15.21
PAT	50.30	42.27
PAT Margin (%)	5.77	7.08
Net Worth	459.65	416.46

* It comprises revenue from operations and other income.

Financial Ratios

PARTICULARS	FY 2025-26	FY 2024-25
Debtors Turnover (times)*	5.07	3.50
Inventory Turnover (times)*	13.65	9.17
Interest Coverage Ratio	33.22	36.38
(times)
Current Ratio (times)	2.83	2.71
Debt Equity Ratio (times)*	0.02	0.08
Operating Profit Margin (%)*	17.76	28.73
Net Profit Margin (%)	5.77	7.08
Return on Net Worth (%)	11.48	10.63

Details of significant Changes (Change of 25% or more as Compared to the immediately previous financial year) in key financial ratios, along with detailed explanations therefore, including:

*The movement in the above ratios during the year is primarily attributable to growth in operations and improved efficiency in the management of inventory, receivables and working capital. Consequently, the Inventory Turnover Ratio and Trade Receivables Turnover Ratio have improved as compared to the previous year, reflecting better utilization of operating resources and enhanced working capital management. Further, the Debt-Equity Ratio has decreased during the year primarily on account of reduction in borrowings and improvement in the Companys net worth. The decline in Operating Profit Margin was mainly attributable to changes in product mix, competitive market conditions, and higher input costs. The overall movement in these ratios indicates a strengthened financial position and improved operational efficiency of the Company.

CONSOLIDATED PERFORMANCE FOR THE YEAR ENDED MARCH 31,2026:

During FY 2025-26, the Group delivered a strong financial performance amidst a challenging business environment marked by volatility in raw material prices, fluctuations in energy and freight costs, and continued geopolitical uncertainties affecting global trade. Total Income on a consolidated basis increased to Rs.880.79 Crore from Rs.601.59 Crore in FY 2024-25, registering a growth of 46.41%, driven by higher sales volumes, improved demand across key markets, and sustained customer engagement across the Groups product portfolio.

EBITDA for the year stood at ^98.00 Crore as compared to Rs.88.40 Crore in the previous year, reflecting a growth of 10.86%. EBITDA Margin moderated to 11.21% from 14.87% in FY 2024- 25, primarily due to fluctuations in raw material prices, higher logistics costs, and competitive market conditions during the year.

The Group reported a Profit After Tax (PAT) of Rs.44.49 Crore for FY 2025-26 as against Rs.38.69 Crore in the previous year, representing a growth of 14.99%. PAT Margin stood at 5.09% compared to 6.51% in FY 2024-25. Despite pressure on margins, the Group maintained profitability through higher business volumes, operational efficiencies, prudent cost management, and improved capacity utilization.

(Rs. in Crore)

PARTICULARS	FY 2025-26	FY 2024-25
Total Income *	880.79	601.59
EBITDA	98.00	88.40
EBITDA Margin (%)	11.21	14.87
PAT	44.49	38.69
PAT Margin (%)	5.09	6.51
Net Worth	456.53	417.56

* It comprises revenue from operations and other income.

Financial Ratios

PARTICULARS	FY 2025-26	FY 2024-25
Debtors Turnover (times)*	5.05	3.47
Inventory Turnover (times)*	13.73	9.16
Interest Coverage Ratio (times)	19.14	20.41
Current Ratio (times)	2.19	2.68
Debt Equity Ratio (times)*	0.23	0.11
Operating Profit Margin (%)*	17.52	28.46
Net Profit Margin (%)	5.09	6.51
Return on Net Worth (%)	10.18	9.68

Details of significant Changes (Change of 25% or more as Compared to the immediately previous financial year) in key financial ratios, along with detailed explanations therefore, including:

*The significant changes in the above financial ratios during the financial year under review were primarily driven by improved working capital management, resulting in higher debtor and inventory turnover ratios. The increase in the Debt-Equity Ratio was mainly attributable to higher utilization of borrowings for business and operational requirements during the year. The decline in the Operating Profit Margin was primarily due to changes in product mix, competitive market conditions, and increase in input and operating costs. The Group continues to focus on strengthening operational efficiencies, optimizing resource utilization, and maintaining financial discipline to support sustainable growth and long-term value creation.

SEGMENT-WISE PERFORMANCE

During the financial year 2025-26, Bhageria Industries Limited continued to deliver a stable performance across its key business segments, supported by product diversification and operational efficiencies.

(Rs. In Crore)

Segment Vertical	Standalone Revenue		Standalone EBIT		Consolidated Revenue		Consolidated EBIT
	2025-26	2024-25	2025-26	2024-25	2025-26	2024-25	2025-26	2024-25
Chemicals	829.56	504.31	69.26	56.46	829.56	504.31	69.26	56.46
Solar Power	26.86	27.83	11.57	12.04	27.13	27.83	11.39	12.03
Pharma	4.20	8.12	(5.49)	(5.64)	6.45	5.57	(7.54)	(7.97)
Others	10.82	57.23	1.26	3.22	10.82	57.23	1.25	3.18

RISK MANAGEMENT

The Company operates in a dynamic business environment and is exposed to various risks that could impact its operational and financial performance. The Companys risk management framework focuses on identifying, assessing, monitoring, and mitigating key business risks through appropriate controls, governance mechanisms, and continuous review by the management and the Board.

The key risks and mitigation strategies are outlined below:

Risk Category		Risk Description	Mitigation Measures
Supply Chain Risk		Disruptions in the availability of raw materials, logistics constraints, supplier concentration, geopolitical developments and fluctuations in input costs may impact production schedules and profitability.	The Company maintains a diversified supplier base, develops long-term supplier relationships, monitors inventory levels, undertakes strategic procurement planning and continuously evaluates alternative sourcing options to ensure supply continuity.
Competition Risk		Intense competition from domestic and international players may exert pressure on market share, pricing and margins.	The Company focuses on product quality, customer relationships, operational efficiency, innovation, cost optimization and market diversification to strengthen its competitive position and enhance customer value.
Liquidity Risk	Inadequate availability of funds or adverse movements in working capital requirements may affect the Company\u2019s ability to meet operational and financial obligations.			The Company maintains prudent treasury management practices, adequate banking relationships, diversified funding sources, regular cash flow monitoring and optimal working capital management to ensure financial flexibility.
Regulatory Risk	Changes in applicable laws, regulations, environmental norms, taxation policies, trade policies and compliance requirements may impact business operations and profitability.			The Company has established compliance monitoring mechanisms and engages with professional advisors to ensure timely identification of regulatory developments and adherence to all applicable legal and statutory requirements.
Human Capital Risk	The ability to attract, develop, and retain skilled talent is critical to sustaining operational excellence and business growth. Employee attrition, skill gaps, or leadership succession challenges may impact performance.			The Company focuses on employee engagement, learning and development, succession planning, performance management, competitive compensation practices and fostering a safe and inclusive work environment.
Environmental & Social Risk	Increasing stakeholder expectations regarding environmental sustainability, workplace safety, resource efficiency and social responsibility may create operational and reputational risks.			The Company remains committed to sustainable business practices, environmental compliance, occupational health and safety standards, responsible resource utilization, community engagement initiatives and continuous improvement in ESG-related performance.

The Company continuously reviews its risk profile and strengthens its risk management processes to address emerging challenges and opportunities. Through a proactive and integrated risk management approach, the Company seeks to protect stakeholder interests, enhance resilience, and support sustainable long-term growth.

STRATEGY

The Companys strategy is focused on achieving sustainable and profitable growth through operational excellence, customer- centricity, innovation and prudent capital allocation. The Company continues to strengthen its market position by enhancing product quality, expanding customer relationships, improving operational efficiencies and optimizing costs across the value chain.

The Company remains committed to developing value-added products, strengthening supply chain resilience, and leveraging technology to improve productivity and responsiveness to changing market dynamics. Sustainability, responsible business practices and effective risk management continue to be integral to the Companys long-term growth strategy.

Supported by a strong financial foundation, experienced management team and focus on continuous improvement, the Company is well-positioned to capitalize on emerging opportunities and create sustainable value for its shareholders and other stakeholders.

HUMAN RESOURCE

At Bhageria, our people are the cornerstone of our success and a key enabler of sustainable growth. We believe that a motivated, skilled and engaged workforce is essential for delivering operational excellence, driving innovation and creating long-term value for all stakeholders.

The Company is committed to fostering an inclusive, performance-driven and learning-oriented work environment that encourages collaboration, accountability and continuous improvement. Our Human Resource strategy focuses on attracting, developing, engaging and retaining talented professionals who contribute meaningfully to the achievement of the Companys strategic objectives.

To strengthen organizational capabilities, the Company continues to invest in employee development through structured training programs, leadership initiatives, technical skill enhancement and competency-building interventions. These initiatives are designed to support professional growth, improve productivity and prepare employees to meet evolving business challenges.

As on March 31,2026, the Company had a workforce strength of 457 employees. During the year, 51 new employees were inducted to support business requirements and address normal attrition. The Companys comprehensive human resource framework encompasses talent acquisition, performance management, employee engagement, succession planning, learning and development and competitive compensation practices.

The Company maintains cordial industrial relations across all its locations and remains committed to ensuring employee well-being, workplace safety, diversity, and equal opportunity. By nurturing a culture of excellence and continuous learning, Bhageria aims to build a resilient and future-ready workforce that will support its long-term growth aspirations and sustained business success.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

The Company has established a comprehensive and robust internal control framework commensurate with the nature, size, and complexity of its operations. The internal control systems are designed to ensure operational efficiency, safeguarding of assets, reliability of financial reporting, compliance with applicable laws and regulations, and effective risk management. The Companys processes are supported by an integrated ERP platform that enables standardized operations, accurate transaction processing, timely reporting, and secure management of financial and operational information. Well-defined policies, delegation of authority, approval mechanisms, and information security controls further strengthen the overall governance framework.

The Company follows a risk-based internal audit mechanism to evaluate the adequacy and effectiveness of internal controls across key business functions. The findings and recommendations of the Internal Auditors are periodically reviewed by the Audit Committee, which comprises Independent Directors. The Committee monitors the implementation of corrective actions, reviews significant observations, and provides strategic oversight to ensure continuous improvement in the control environment.

The management, together with the Audit Committee and Internal Auditors, continuously evaluates and strengthens the internal control systems to address evolving business requirements and emerging risks. Based on such reviews, the Company believes that its internal control systems and procedures are adequate and effective, providing reasonable assurance regarding the orderly conduct of business operations, protection of assets, prevention and detection of frauds and errors, and the accuracy and completeness of financial records.

CAUTIONARY STATEMENT

The statements contained in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates, expectations, plans, strategies, or forecasts may constitute forward-looking statements within the meaning of applicable securities laws and regulations. These statements are based on certain assumptions and expectations of future events and are subject to various risks, uncertainties, and other factors that could cause actual results, performance, or achievements to differ materially from those expressed or implied in such statements.

Important factors that could influence the Companys operations and financial performance include, but are not limited to, changes inglobaland domestic economic conditions, demand-supply dynamics, fluctuations in raw material and finished goods prices, foreign exchange movements, changes in government policies and regulations, taxation laws, environmental regulations, industry developments, competitive pressures, availability of resources, industrial relations and other unforeseen events beyond the Companys control.

Readers are cautioned not to place undue reliance on these forward-looking statements. The Company undertakes no obligation to publicly revise, update or amend any forward- looking statements, whether as a result of new information, future events, or otherwise, except as required under applicable laws and regulations.