Bodal Chemicals Ltd Management Discussions

ECONOMIC OVERVIEW

GLOBAL ECONOMY

The global economy demonstrated measured resilience during calendar year 2025 despite elevated geopolitical tensions, evolving trade policies, inflationary moderation, and fluctuating commodity prices. According to the International Monetary Fund (IMF), global GDP growth is projected at 3.1% in 2026, reflecting the resilience of the global economy despite geopolitical uncertainties and trade-related challenges. While easing inflationary pressures and stable labor markets continue to support economic activity, elevated energy prices, ongoing geopolitical conflicts and tighter financial conditions remain key risks to the growth outlook.

Advanced economies continued to witness subdued growth amid tight monetary conditions and persistent uncertainty around trade and energy security. Emerging economies, led by India and Southeast Asia, remained key drivers of global growth owing to strong domestic demand, manufacturing expansion, and increasing investments in infrastructure and industrialisation.

Global trade volumes remained stable despite tariff-related concerns, particularly involving the United States, Europe, and China. Supply chain diversification continued to accelerate, encouraging multinational corporations to increasingly source from India and other emerging manufacturing hubs.

Meanwhile, the global chemicals industry experienced gradual demand recovery across agrochemicals, textiles, pharmaceuticals, construction chemicals, water treatment, and specialty applications.

The geopolitical tensions in the Middle East have introduced significant humanitarian and economic challenges for the affected regions, while also posing a meaningful test to the

Asias tech and other exports are diverging

Asia-Pacific exports growth rate, year over year (%)

resilience of the global economy. Disruptions in key transit routes, particularly the Strait of Hormuz, along with potential damage to critical energy infrastructure, have resulted in elevated energy prices and supply constraints across essential commodities, including fertilisers, an important input for the chemicals sector.

Global financial markets have exhibited heightened volatility, especially across select Asian economies, accompanied by a tightening of financial conditions. While liquidity remains relatively supportive across advanced and emerging markets, the persistence and scale of the conflict remain uncertain. A prolonged period of elevated energy prices could materially increase input costs, exert inflationary pressures, and dampen global growth prospects.

Prior to the escalation, global economic activity showed moderate growth, supported by robust investment in technology, particularly artificial intelligence alongside favourable fiscal and monetary conditions. While recent developments, including a moderation in US tariff rates following judicial intervention, have provided some relief, overall trade barriers remain elevated relative to pre-2025 levels.

It is pertinent to note that inflationary pressures have intensified in several major economies, driven in part by rising energy costs and supply chain disruptions, with medium- term inflation expectations also trending upwards, Against this backdrop, global GDP growth is projected to moderate before witnessing a marginal recovery to 3,0% in 2027, This outlook reflects the offsetting impact of higher input costs and subdued demand against the continued momentum in technology-led investments and easing trade constraints,

Technology expots matter in most of Asia

Technology exports as share of total exports (%)

Regionally, the United States is likely to witness a gradual slowdown as consumption weakens, while the Euro area may experience subdued growth due to elevated energy costs, with partial recovery supported by increased fiscal spending, Chinas growth is also expected to moderate in the near term,

Inflation across G20 economies is projected to remain elevated in 2026 before easing in 2027, assuming stabilisation in energy prices. Downside risks persist, particularly in the event of prolonged supply disruptions, which could further elevate commodity prices, exacerbate inflation, and weaken global demand. Conversely, an earlier resolution of geopolitical tensions, sustained resilience in global business activity, or stronger-than-expected productivity gains from technological advancements could support an improved growth outlook,

In this evolving macroeconomic environment, central banks are expected to maintain a cautious stance to ensure inflation expectations remain anchored, Fiscal interventions, where necessary, are likely to remain targeted and time-bound. Over the medium term, there is an increasing emphasis on improving energy efficiency and reducing dependence on imported fossil fuels measures expected to mitigate geopolitical risk exposure and support cost optimisation for businesses globally,

The gradual recovery in demand across textiles, construction, automotive and consumer goods sectors is expected to benefit the chemicals and dyestuff industry. Nevertheless, fluctuations in raw material prices, energy costs and geopolitical developments may continue to pose challenges for global supply chains and profitability.

INDIAN ECONOMY

The Indian economy is expected to demonstrate strong resilience amid a challenging global environment, with the OECD projecting GDP growth of approximately 7.6% in the current fiscal year, followed by a moderation to 6.1% in FY2026-27. This growth trajectory reflects the inherent strength of domestic demand and macroeconomic fundamentals, despite external uncertainties arising from ongoing geopolitical developments.

The evolving conflict in the Middle East presents potential risks to the outlook, particularly through disruptions in global energy supply chains. Any prolonged interruption in key transit routes or energy infrastructure could lead to elevated energy prices and supply constraints in critical inputs such as fertilisers, thereby exerting pressure on cost structures across industries.

Indias growth outlook is supported, in part, by easing global trade constraints, including a reduction in US tariff rates, which is expected to enhance export competitiveness. However, this positive momentum may be partially offset by domestic challenges such as potential gas rationing, which could impact select industrial activities, as well as a gradual withdrawal of fiscal support.

Inflationary pressures are anticipated to rise in the near term, driven primarily by higher global energy prices and the waning impact of earlier disinflationary factors, Inflation is expected to increase meaningfully in FY2026-27 before moderating thereafter, contingent upon stabilisation in commodity markets.

In response to evolving inflation dynamics, monetary policy is expected to remain proactive, with the possibility of calibrated rate adjustments to maintain price stability and anchor inflation expectations. Despite these near-term headwinds, India continues to remain one of the fastest-growing major economies globally, supported by structural drivers, policy support, and improving external competitiveness. Overall, Indias growth outlook remains robust, underpinned by strong domestic fundamentals and a resilient economic framework, Source: OECD Economic Outlook, 2026; RBI Monetary Policy Report

STATUTORY REPORTS

THE CHEMICAL INDUSTRY

GLOBAL CHEMICAL INDUSTRY

The global chemical industry is undergoing a structural transformation, driven by demand recovery across key end- use segments, increasing focus on specialty and performance chemicals, and accelerating supply chain realignment in the post-pandemic era. The industry experienced gradual demand recovery in 2025 across agrochemicals, textiles, pharmaceuticals, construction chemicals, water treatment, and specialty applications.

The global dyes and dye intermediates industry is valued at approximately USD 18-21 billion, growing at around 4-6% annually. Demand is driven largely by the textiles, apparel, and consumer goods sectors, with Asia-Pacific dominating both production and consumption. The global synthetic dyes market is projected to reach USD 9.05 billion by 2029 from USD 7.08 billion in 2024, at a CAGR of 5.0%. The global dyestuff and pigments market was valued at USD 14.75 billion in 2024 and is projected to reach USD 24.30 billion by 2033, growing at a CAGR of 6.1%. The dye intermediates market, valued at USD 2.88 billion in 2025, is expected to grow at a CAGR of 5.95% through 2032.

f			\
Historical period	Base Year	Forecast Period	CAGR
2021-2024	2025	2026-2034	5.20%
\			y

China remains the dominant producer globally, while India has emerged as the second-largest producer of dye intermediates and a significant exporter of dyestuffs. Growing regulatory pressure in China on environmental compliance has created structural headroom for Indian manufacturers, particularly those with integrated, cost-competitive operations.

Source: MarketsandMarkets; Future Market Report; Maximize Market Research, 2026

INDIAN CHEMICAL INDUSTRY

Indias chemical industry is highly diversified, encompassing over 80,000 commercial products across segments such as bulk chemicals, specialty chemicals, agrochemicals, petrochemicals, polymers, and fertilisers. It ranks as the sixth-largest chemical producer globally and third in Asia, contributing approximately 7% to the countrys GDP and providing employment to over 2 million people.

The sector, valued at around T21,50,750 crore (US$ 250 billion) in 2024, is projected to expand to US$ 300 billion by 2028 and further scale up to approximately T86,03,000 crore (US$ 1 trillion) by 2040, underscoring its strong long-term growth potential despite prevailing global uncertainties.

r		\
Global Market Size
USD 46.84	USD 49.13	USD 73.67
Billion 2025	Billion 2026	Billion 2034
		y

Compound Annual Growth Rate 4.5%

2026-2035

Source: Expert Market Research

On the global stage, India is the third-largest producer of agrochemicals, following the United States and China. The country accounts for nearly 16-18% of global production of dyestuffs and dye intermediates, with the colourants segment securing an estimated -15% share of the global market. The industry operates in a largely de-licensed environment, barring a few hazardous chemicals, enabling greater ease of doing business. Additionally, India holds a leadership position in pharmaceuticals, particularly in generics and biosimilars, and is a major vaccine producer, contributing over 50% of global vaccine supply.

Source: India Brand Equity Foundation (IBEF), 2026

GROWTH DRIVERS OF THE INDIAN CHEMICAL INDUSTRY

Several factors continue to contribute to the performance and outlook of the Indian chemical industry in FY26.

?–  Rise of Specialty Chemicals: Indias chemical industry is witnessing a structural shift towards higher-value specialty chemicals, particularly in segments such as pharmaceuticals (APIs), agrochemicals, and electric vehicle batteries. These segments offer higher profit margins and are less susceptible to commodity price fluctuations compared to bulk chemicals, positioning Indian manufacturers to capture greater value across the supply chain.

?–  Infrastructure and Logistics Development: Continued investment in road, rail, and port connectivity, along with the availability of green energy, is enhancing the competitiveness of Indian chemical manufacturing hubs. Integrated clusters such as Dahej, Ankleshwar, Taloja, and Visakhapatnam are being upgraded with shared infrastructure, including steam networks, effluent treatment facilities, and logistics hubs, reducing operational costs and improving ease of doing business for chemical companies.

?–  Global Supply Chain Diversification: Global companies continue to diversify their supply chains, with India

emerging as a preferred alternative under the China Plus One strategy, owing to its skilled labour, technical expertise, and cost-effective manufacturing capabilities. India is not replacing China entirely but is becoming a vital alternative under the China Plus One strategy. This continues to create significant export opportunities for Indian chemical firms.

?–  Government Support and Initiatives: The Union Budget 2026-27 allocated approximately Rs. 185.72 crore to the Ministry of Chemicals and Fertilizers, alongside a broader Rs. 1.97 lakh crore PLI outlay across end-use sectors including pharma, telecom, auto, and electronics, indirectly driving chemical demand across these verticals. The Budget also introduced a new scheme to assist states in setting up three dedicated Chemical Parks through a challenge-based selection mechanism, with a budgetary allocation of Rs. 600 crore for FY 2026-27 - the first instance of dedicated budgetary support for chemical park infrastructure.

?–  Centres of Excellence (CoEs): The Department of Chemicals and Petrochemicals continues to expand its network of CoEs to promote research and development in the sector, focusing on developing new molecules and technologies, improving existing processes, and promoting new applications of polymers, chemicals, and plastics.

?–  Foreign Direct Investment (FDI) Policy: India continues to allow 100% FDI in the chemical sector under the automatic route, with exceptions for certain hazardous chemicals. This policy continues to aim at attracting foreign investment and promoting self-sufficiency.

?–  Quality Control Orders (QCOs): Quality Control Orders, now covering over 150 chemical products and overseen by the Bureau of Indian Standards (BIS), continue to progressively limit the import of substandard chemicals, ensuring quality and preventing dumping,

OUTLOOK

The Indian chemical industrys performance during FY2025- 26 reflects a gradual transition from cyclical weakness toward a more stable growth trajectory. While global commodity chemical markets continue to face oversupply and margin pressure, domestic demand across several downstream sectors has strengthened significantly. Strategic government policies, including the Production Linked Incentive (PLI) scheme, the Petroleum, Chemicals, and Petrochemical Investment Regions (PCPIRs), and the newly introduced Chemical Parks scheme, are expected to address existing structural issues and foster a conducive environment for growth. Indias chemical sector could generate around 10 million jobs by 2040, supported by rising investments, growing domestic demand, export opportunities and expanding manufacturing capabilities.

the dyestuff industry

global dyestuff & dye intermediates industry

The global dyestuff and dye Intermediates market Is underpinned by steady demand from a wide range of end- use Industries, with textile manufacturing remaining the dominant demand driver. Reactive, disperse, acid, and vat dyes continue to account for the largest share of global consumption, principally used in textile dyeing and printing applications.

The market is experiencing growing preference for high- performance, eco-compliant dyes as end-user industries particularly in Europe and North America tighten their environmental sourcing standards. This trend is creating demand for manufacturers who can offer consistent quality, low-VOC formulations, and regulatory compliance alongside competitive pricing.

India has emerged as a preferred global sourcing destination for dye intermediates, benefiting from cost competitiveness, raw material access, and an established manufacturing ecosystem in Gujarat. The state of Gujarat accounts for the majority of Indias dyes and intermediates production and continues to strengthen its technological and regulatory infrastructure.

Source: MarketsandMarkets; Amaltas Capital Research, 2025-26

Indian dyestuff industry

Indias dyes and intermediates market is on a robust growth trajectory, supported by expansion in domestic textile manufacturing, growing exports, and increasing end-use diversification. The India dyes and pigments market was

valued at approximately USD 68.67 billion in 2025 and is projected to grow at a CAGR of 4.5% over the forecast period of 2026-2035, reaching an estimated USD 106.64 billion by 2035.

Dyes and dye intermediates constitute critical inputs across a wide range of end-use industries, with each category serving distinct functional and performance requirements. Various types of dyes including azo, reactive, disperse, vat, sulphur, and specialty variants are essential for imparting colour, durability, and specific performance attributes such as wash fastness, light resistance, and fabric compatibility, particularly in textiles, leather, paper, and food applications.

Growth in the domestic textile industry remains a key demand driver, with increasing consumption of dyes in fabric printing and coloration. As the Indian textiles and apparel market is expected to scale significantly over the coming years, evolving trends such as fast fashion and functional textiles are likely to drive demand for advanced, high-performance colour solutions. Additionally, the continued expansion of Indias textile exports, particularly in value-added segments such as home textiles, apparel, and handicrafts, is supporting market growth.

From a regional perspective, Gujarat continues to serve as the primary manufacturing hub, accounting for a significant share of the countrys dyes and intermediates production. The state plays a pivotal role in advancing technological capabilities and promoting the development of sustainable and eco-friendly products. Supportive policy initiatives aimed at strengthening manufacturing competitiveness are expected to further enhance the sectors growth trajectory over the medium term.

Source: Expert Market Research (EMR); IBEF

opportunities in the Indian chemical industry

why india is emerging as a specialty chemicals hub

India is increasingly recognised as a preferred global destination for specialty chemical manufacturing.

Several structural factors underpin this positioning:

Skilled talent pool with deep technical expertise In chemical engineering and process chemistry

Cost competitiveness across labour, utilities, and raw material procurement relative to developed markets

Significant export potential to established markets in Europe, the US, and Asia- Pacific

Proactive policy support including PLI schemes, PCPIR zones, and infrastructure investment in chemical clusters

Robust compliance infrastructure with evolving alignment to global environmental and quality standards

Supply chain diversification away from China creating sustained demand for Indian chemical manufacturers

challenges in the Indian chemical industry

While the long-term structural opportunity for Indias chemical sector remains compelling, near-term headwinds present challenges that companies must actively navigate:

?€? Elevated and volatile raw material costs, particularly sulphur, benzene, and energy inputs, which compress margins during down-cycles

?€? Intensifying competition from Chinese manufacturers, who benefit from scale advantages and periodic export price aggression

?€? Environmental compliance costs and evolving regulatory requirements that necessitate ongoing capital expenditure

?€? Dependence on textile sector demand, which is itself subject to global trade and consumer spending cycles

?€? Currency fluctuations that affect export realisation and import costs for key feedstocks

?€? Access to competitive financing for capacity expansion, particularly for mid-size manufacturers

swot analysis

The Chemicals and Dyestuff industry is expected to witness steady growth driven by expanding industrial activity, increasing export opportunities and rising demand for specialty products. However, raw material volatility, environmental compliance requirements and global competitive pressures are likely to remain key challenges. Companies focusing on product innovation, operational efficiency and sustainable manufacturing practices are expected to be better positioned to capitalize on emerging opportunities in the coming year.

Strengths	impact In The Upcoming Year
The industry serves a wide range of end-use sectors, including textiles, pharmaceuticals, paints, plastics and agrochemicals.	Demand diversification can help reduce dependence on any single sector and support stable growth.
India benefits from a well-established manufacturing ecosystem and a large skilled workforce.	Domestic producers may continue to strengthen their position in both local and export markets.
Growing global preference for China-plus-one sourcing is creating new opportunities for Indian manufacturers.	Export volumes may improve as international customers diversify their supply chains.
Continuous investments in process innovation and specialty chemicals are enhancing product capabilities.	Higher-value products can support margin expansion and improve competitiveness.
Weaknesses	Impact in the Upcoming Year
The industry remains dependent on several imported raw materials and intermediates.	Supply disruptions and currency fluctuations may impact production costs.
Energy-intensive manufacturing processes expose companies to utility cost volatility.	Rising energy prices may place pressure on operating margins.
Compliance with environmental and safety regulations requires significant capital investment.	Higher compliance expenditure may affect profitability, particularly for smaller players.
Price competition in commodity chemical and dyestuff segments remains intense.	Margin pressures may continue in highly competitive product categories.
Opportunities	Impact in the Upcoming Year
Rising global demand for specialty chemicals and performance dyes is creating new growth avenues.	Companies with differentiated products can benefit from improved realizations and market share gains.
Increasing focus on sustainable and eco-friendly products is driving product innovation.	Manufacturers offering green alternatives may gain stronger customer acceptance.
Government initiatives supporting domestic manufacturing continue to encourage industrial expansion.	Capacity additions and investments may accelerate across the sector.
Growing demand from textiles, construction, automotive and consumer goods industries supports consumption growth.	Higher industrial activity can contribute to increased demand for chemical and dyestuff products.
Threats	Impact in the Upcoming Year
Rising global demand for specialty chemicals and performance dyes is creating new growth avenues.	Procurement challenges and pricing volatility could affect business operations.
Stringent environmental regulations are becoming increasingly demanding across global markets.	Non-compliance risks may lead to operational restrictions and additional costs.
Fluctuations in crude oil prices directly influence feedstock and transportation costs.	Profitability may remain sensitive to raw material price movements.
Competition from low-cost international manufacturers continues to intensify.	Market share and pricing power may face pressure in certain segments.

company overview

Bodal Chemicals Limited is one of Indias leading integrated chemical manufacturers, with a vertically integrated presence spanning Basic Chemicals, Dye Intermediates, Dyestuffs, Chlor alkali and Benzene Downstream Products. Incorporated in 1989 and headquartered at Ahmedabad, the Company is listed on BSE (524370) and NSE (BODALCHEM).

The Company is widely recognised as the largest domestic manufacturer of dye intermediates and commands a significant share of the Indian dyestuffs market. Its manufacturing capabilities extend across about 25 varieties of dye intermediates and approximately 150 variants of dyestuffs, principally used as raw materials in textile, leather, and paper industries.

Bodal exports to over 30 countries across Europe, Asia, the Asia-Pacific region, and south America with exports constituting approximately 25% of production output. The Company maintains a Government of India recognised 3-Star Export House status, reflecting the scale and quality of its international operations.

product portfolio

The Companys diversified product portfolio is organised across five principal segments:

?€? Basic Chemicals (12 products): Sulphuric Acid, Chlorosulphonic Acid, Sulphur Trioxide, Oleum (23% & 65%), Sodium Bisulphate, Acetanilide, Thionyl Chloride, Beta Naphthol, Para Nitro Aniline, and related products

?€? Dye Intermediates (25 products): Vinyl Sulphone and Derivatives, H Acid, Gamma Acid, FC Acid, and other critical dye intermediates

?€? Dyestuffs (150 variants): Reactive, Direct, Acid, and other dyestuff categories across powder, liquid, and salt- free forms

?€? Chlor Alkali: Caustic Soda, Chlorine and Hydrogen from Rajpura, Punjab facility

?€? Benzene Downstream Products: Mono Chloro Benzene (MCB), Para Nitro Chloro Benzene (PNCB), and Ortho Nitro Chloro Benzene (ONCB) from the Saykha facility

manufacturing infrastructure

The Company operates eight manufacturing facilities, with the majority located across strategic industrial zones in Gujarat, including Padra, Vadodara, GIDC Vatva (Ahmedabad), GIDC Saykha (near Dahej), and other Gujarat-based sites. The Company also operates a Chlor Alkali facility in Rajpura, Punjab. Overseas operations include subsidiaries in Turkey, China, Bangladesh and Indonesia, which expand the Companys geographic reach and distribution capabilities.

The Saykha plant, commissioned progressively from December 2023 onwards, manufactures benzene downstream specialty chemicals with a capacity of 63,000 MTPA. At

optimal utilisation, this facility has the potential to make a meaningful contribution to the Companys consolidated revenues and further strengthen its value-added product mix.

The Company has invested significantly in quality infrastructure, including a global-standard dyestuff technical service laboratory and dyes quality control laboratory. verify and redraft

ANNUAL REPORT 2025-26

operational and financial overview

FY2025-26 marked a significant year of recovery and growth for Bodal Chemicals, with the Company crossing the T2,000 crore revenue milestone for the second time in last several years. The strong performance was driven by improved volumes across business segments, better realisations, and the benefits of operating leverage from the Companys expanded manufacturing base. The recognition of SGST incentive income from the Punjab Industrial Incentive Scheme also contributed to the years financial performance.

Operational Excellence Anchored in Sustainability

SEGMENT-WISE REVENUE PERFORMANCE

FY2025-26 (Consolidated)

The Companys three core business segments all registered year-on-year revenue growth in FY2025-26, with the Basic Chemicals segment recording the most significant expansion driven by a sharp increase in raw material prices (particularly sulphur) and the ramp-up of the Saykha benzene downstream facility.

Dye Intermediates and Dyestuff segments demonstrated steady volume-led growth, reflecting improved customer demand and stronger realisations. The Basic Chemicals segments exceptional growth was primarily driven by elevated sulphur and related raw material prices flowing through to finished goods pricing, as well as the progressive utilisation of the Saykha facility producing Benzene downstream products, i.e., MCB, PNCB, ONCB.

KEY FINANCIAL RATIOS

Note No.	Ratios	Numerator	Denominator	2025-26	2024-25	% Variance
i	Current Ratio	Current Assets	Current Liabilities	1.19	1.13	4.83%
ii	Debt Equity Ratio	Total Debt	Total Equity	0.68	0.79	-14.21%
iii	Debt Service Coverage Ratio	EBITDA	Interest Principal	0.98	0.93	5.45%
iv	Return On Equity	PAT	Average Total Equity	4.00%	1.71%	134.09%
V	Inventory Turnover Ratio	Cost Of Goods Sold	Average Inventory	3.45	3.07	12.46%
vi	Trade Receivables Turnover Ratio	Revenue From Operations	Average Trade Receivables	4.82	4.48	741%
vii	Trade Payable Turnover Ratio	Raw Material Purchase + Trading Purchase + Other Expenses	Average Trade Payables	7.00	7.12	-1.60%
viii	Net Capital Turnover Ratio	Revenue From Operations	Average Working Capital	16.28	18.24	-10.73%
ix	Net Profit Ratio	PAT	Revenue From Operations	2.38%	11.4%	108.98%
X	Return On Capital Employed	Earning Before Interest And Tax	Shereholdres Funds + Long Term Debt	8.95%	6.85%	30.74%
xi	Return On Investment	PAT	Shareholder Funds	3.92%	1.70%	130.90%

Notes

(a) Since there is increase in profit after tax during the current year, return on equity is increased from 1.71% to 4.00%

(b) Since there is increase in turnover during the current year, trade receivable turnover ration is increased from 4,48 to 4,82

(c) Since there is increase in net profit for the year, net profit ratio is higher as compared to previous financial year.

(d) Since there is increase in earnings before interest and tax for the year, return on capital employed is higher as compared to previous financial year.

(e) Since there is increase in net profit for the year, return on investments is higher as compared to previous financial year.

RISKS AND RISK MITIGATION MECHANISMS

The Company operates in a cyclical, commodity-linked industry and is exposed to a range of market, operational, and regulatory risks. The Board and Management have put in place a structured Risk Management Frameworkto identify, assess, monitor, and mitigate these risks on an ongoing basis.

Risk Factor	Nature	Mitigation Strategy
Raw Material Price Volatility	Market	Backward integration in sulphuric acid and key intermediates; strategic inventory management
Chinese Competition	Market	Product quality differentiation, ISO certification, global customer relationships, and cost competitiveness
Energy Cost Escalation	Operational	In-house captive power infrastructure; ongoing efficiency optimisation programmes
Currency Risk	Financial	Natural hedging through export revenues; selective forward cover as appropriate
Demand Cyclicality	Market	Diversified product portfolio across >150 dyestuff variants and 25+ intermediates; export to 35+ countries
Regulatory & Environmental	Compliance	ISO 14001 certification; regular ETP upgrades; proactive engagement with regulatory authorities
Leverage & Interest Rate Risk	Financial	Debt reduction focus; improvement in cash flows from operating leverage on expanded capacities

The Companys vertically integrated business model spanning basic chemicals, dye intermediates, and dyestuffs serves as a natural hedge against margin compression at any single stage of the value chain, The Saykha benzene downstream facility further enhances this integration, adding a new growth vector while diversifying revenue streams,

HUMAN RESOURCE MANAGEMENT

The Company regards its workforce as its most valuable asset and remains committed to upholding universal human rights across its operations, The Company places strong emphasis on employee well-being and retention through continuous training, engagement, and team-building initiatives, while fostering a healthy work-life balance,

The Company is dedicated to maintaining a safe, hygienic, and respectful workplace that upholds the dignity of every employee, In line with this commitment, the Company strictly adheres to its corporate policies and complies with all applicable laws, including human rights provisions under the Constitution of India and relevant national regulations,

As of 31 st March 2026, the Company had approximately 2100+ permanent employees and 2200+ contractual employees across its manufacturing and corporate operations, Industrial relations across all manufacturing facilities remained cordial and productive during the year under review,

STATUTORY REPORTS

supply chain management

The Company maintains a robust and diversified supply chain framework, with procurement relationships spanning domestic and international raw material suppliers. Key raw materials include sulphur, benzene, naphthalene, and other petrochemical feedstocks. The Companys backward integration into sulphuric acid and other basic chemicals provides a meaningful advantage in managing input cost volatility.

Bodals eight manufacturing facilities across Gujarat, Uttarpradesh and Punjab, combined with strategically located distribution points across Europe, Asia, the Asia- Pacific region and South America, enable efficient logistics and timely delivery to customers across the globe. The Companys supply chain is periodically reviewed to identify efficiencies and address concentration risks.

INFORMATION ; TECHNOLOGY

The Company continues to invest in digital infrastructure to enhance operational efficiency, quality control, and customer service. IT systems support enterprise-wide functions including procurement, production planning, quality management, and financial reporting. These systems are periodically upgraded to align with evolving business W requirements and cybersecurity best practices.

internalcontrol systems and adequacy

The Company has established a comprehensive framework of policies and procedures to ensure robust internal financial controls and the efficient conduct of its operations. These controls are designed to ensure adherence to company policies, safeguard assets, prevent and detect fraud and errors, and maintain the accuracy and completeness of accounting records, enabling the timely preparation of reliable financial information.

The effectiveness of these systems is periodically reviewed by the Management and Internal Auditors, with no material changes reported during the year. In addition, the Company has implemented a range of policies and procedures to protect its overall interests, reviewed at regular intervals to ensure continued relevance and effectiveness. A structured reporting mechanism is also in place to identify and address any deviations from established policies and procedures.

cautionary statement

The Management Discussion and Analysis Report includes statements that pertain to the Companys objectives, projections, estimates, and expectations. It is important to note that these statements may be considered forward-looking under applicable laws and regulations. It must be understood that the actual results may differ from what is either explicitly expressed or implied in these statements. Various factors can significantly impact the Companys performance, such as economic developments within the country, demand and supply conditions in the industry, changes in Government regulations, tax laws, as well as other factors including litigation and industrial relations.