Cello World Ltd Management Discussions

Global Economy

Overview

The global economy remains resilient, as global economy grew by 3.4% in 2025. The growth was supported by technology-led investments, improving trade flows and supportive financial conditions. However, escalating geopolitical tensions, especially in the Middle East, have introduced fresh headwinds by elevating energy prices and affecting global supply chains. Advanced economies continue to expand steadily, while emerging markets remain more exposed to external shocks. Overall, the outlook reflects stable but measured expansion, underpinned by structural drivers and tempered by geopolitical risks.

	2025	2026 (P)	2027 (P)
Global Economy	3.40%	3.10%	3.20%

Inflation Trajectory and Monetary Policy

Global inflation moderated to 4.1% in 2025 following earlier tightening cycles but remains above target levels. The escalation of geopolitical tensions in the Middle East, particularly the closure of the Strait of Hormuz, has triggered a sharp rise in oil prices, creating a supply-side shock and pushing inflation higher to an estimated 4.4% in 2026. Elevated energy costs are feeding into transportation, food and industrial prices, reinforcing inflationary pressures. Inflation is expected to ease to 3.7% in 2027 as supply conditions stabilise. Central banks are maintaining a calibrated, data-driven stance, balancing inflation control with growth considerations, while prioritising anchored expectations and policy coheritability.

Inflation trend

Metric	2025	2026	2027
Global Inflation (%)	4.1%	4.4%	3.7%

Regional Growth Dynamics

Growth trends across regions remain uneven but broadly resilient, shaped by trade realignments, policy responses, and evolving geopolitical developments.

Advanced economies expanded by 1.9% in 2025 and are projected to moderate to 1.8% in 2026, with a marginal improvement to 1.7% in 2027. Growth remains supported by easing financial conditions, fiscal spending, and continued investments in technology and digital infrastructure. However, structural constraints-including ageing demographics, productivity challenges, and tighter fiscal positions-continue to limit acceleration. Emerging markets and developing economies (EMDEs) grew by 4.4% in 2025 and are expected to sustain momentum at 3.9% in 2026 and 4.2% in 2027. Asia remains a key growth engine, supported by strong technology-led exports, manufacturing resilience, and supply chain diversification. However, domestic demand recovery remains uneven, and commodity-importing economies face pressures from elevated energy prices and currency volatility.

Sub-Saharan Africa recorded growth of 4.5% in 2025 and is projected to improve to 4.3% in 2026 and 4.4% in 2027. The recovery is supported by easing inflation, strengthening consumption, and gradual macroeconomic stabilisation. Nonetheless, the region remains exposed to external vulnerabilities, including commodity price fluctuations, financing constraints, and climate-related risks.

Advanced	1.90%	1.80%	1.70%
Economies
Emerging_Market	4.40%	3.90%	4.20%
and Developing
Economies

Outlook

The global economic outlook remains cautiously constructive, anchored in resilience but tempered by elevated uncertainty. Global growth is projected to stabilise at 3.1% in 2026 and 3.2% in 2027, following a relatively stronger expansion of 3.4% in 2025. Underlying momentum continues to be supported by technology-driven investments, particularly in digital infrastructure and artificial intelligence, alongside steady services trade and gradual normalisation of financial conditions. However, Prolonged geopolitical tensions, intensifying geoeconomic fragmentation, and escalating trade disputes could materially weaken growth prospects while exerting upward pressure on inflation through disrupted supply chains, higher input costs, and reduced global trade efficiency.

Indian Economy

India retained its position as the worlds fastest-growing major economy in FY 2025-26. As per the Provisional Estimates released by the Ministry of Statistics and Programme Implementation (MoSPI) in June 2026, real GDP grew 7.7% during the year, an acceleration from 7.1% in FY 2024-25, despite an uncertain global environment. Nominal GDP grew 8.9% to reach 346.36 Lakh Crore.

Economic momentum remained broad-based, with real Gross Value Added (GVA) expanding 7.9% for the year, driven by robust growth across the Secondary (8.8%) and Tertiary (9.3%) sectors.

Growth accelerated through the year, with real GDP rising from 6.8% in Q1 to a peak of 8.3% in Q2 FY 2025-26 - the highest quarterly growth in six quarters - supported by strong domestic demand, healthy consumption trends, and improving investment activity. Momentum eased marginally to 8.0% in Q3 before settling at 7.8% in Q4 FY 2025-26, underscoring the resilience of Indias economic fundamentals and its sustained growth trajectory through the year.

Press Release Page Press Information Bureau https://www.pib.gov.in/PressReleasePage aspxRsPRID=2219907

Sectorial Analysis

Indias growth momentum remained robust in FY 2025-26, driven by strong industrial activity and resilient services. The secondary sector expanded 8.8%, led by 10.7% growth in manufacturing, while industrial production gained momentum with strong growth in manufacturing and core industries. Business confidence remained positive, with the manufacturing PMI staying in expansion territory and medium- and high-technology industries accounting for 46.3% of manufacturing value added. The services sector continued to anchor economic growth, with GVA rising 9.3% (vs. 7.9% in FY 2024-25) and contributing 54.3% of nominal GVA. Growth was supported by resilient domestic consumption, steady expansion in trade, transport and communication services, and stable services exports.

Taming Inflation

Indias inflation remained well contained during FY 2025-26, providing a stable macroeconomic backdrop. Retail inflation eased to 3.40% in March 2026 and stood at 3.48% in April 2026, remaining comfortably within the RBIs target range. Moderating food prices, particularly vegetables, helped contain inflation despite continued price pressures in select categories such as personal care and precious metals.

Inresponsetoeasinginflation,theRBIadoptedacalibrated accommodative stance, reducing the repo rate to 5.25% and the Cash Reserve Ratio (CRR) to 3%. These measures improved liquidity, strengthened credit transmission and supported economic growth. Looking ahead, inflation is expected to remain around the RBIs 4% target, although geopolitical developments and monsoon conditions will continue to influence the inflation outlook.

3.4%	5.25%	3%
Average headline CPI	Current Repo	Cash Reserve
inflation during FY	rate	Ratio (CRR)
2025-26

https://www.pib.gov.in/PressReleasePage. aspxRsPRID=2260251®=3&lang=1

Instant View: Indias March retail inflation quickens to 3.4% y/y Reuters

Source:

https://www.pib.gov.in/PressReleasePage. aspxRsPRID=2269286®=48&lang=1

https://www.pib.gov.in/PressReleasePage. aspxRsPRID=2219907®=3&lang=2

RBI MPC meeting April 2026: Repo rate held steady at 5.25%-5 key takeaways from monetary policy decision Stock Market News

Outlook

Indias medium-term growth outlook remains robust, with real GDP projected to grow in the range of 6.8%-7.2% in FY 2026-27. This trajectory is underpinned by resilient domestic demand, sustained government capital expenditure, and continued strength in manufacturing and services. Ongoing improvements in infrastructure and the investment climate are expected to further support economic expansion.

Over the longer term, Indias growth is anchored in the Governments Viksit Bharat vision, which aims to position the country as a developed economy by 2047, targeting a GDP of USD 30-40 trillion and per capita income of USD 15,000-18,000. While the outlook remains constructive, global trade disruptions, geopolitical risks, and external volatility may pose challenges, necessitating continued policy prudence and macroeconomic stability.

6.80% - 7.20%	USD 30 - 40_trillion
2026-27 GDP Growth Outlook	Vision 2047 GDP
	Target
USD 15,000 - 18,000
Targeted Per Capita Income
Level

Viksit Bharat 2047: Vision for a Developed Nation Viksit India

https://www.pib.gov.in/PressReleasePage. aspxRsPRID=2219907®=3&lang=2

Indian Consumerware Market

Overview

The Indian consumerware market has expanded steadily, growing from USD 1.62 billion in 2015 to USD 3.38 billion in 2025E, reflecting strong structural demand. Growth has been driven by rising incomes, urbanisation, and evolving lifestyle preferences, with increasing demand for organised and functional kitchen solutions. Changing consumption patterns, higher product ownership, and a shift towards aesthetically appealing and utility-driven products continue to support market expansion.

Market Segmentation

The market is segmented into houseware, glassware, and small kitchen appliances, with houseware being the largest contributor. The houseware category grew from USD 1.45 billion in 2015 to USD 2.88 billion in 2025E and is expected to reach USD 4.68 billion by 2030 (CAGR 10.2%). The glassware category has also scaled steadily, increasing from USD 0.17 billion in 2015 to USD 0.50 billion in 2025E, and is projected to nearly double to USD 0.93 billion by 2030 (CAGR 16.5%). This growth is supported by premiumisation, rising household penetration, and increasing replacement demand.

Branded Indian Consumerware Market

The branded category has witnessed a structural shift, with its share increasing from 43% in 2015 to 54% in 2024/2025E and expected to reach 60% by 2030. Correspondingly, the unorganised/unbranded category has declined from 57% to 40%, indicating a clear consumer preference for quality, durability, and design. This transition is being driven by expanding organised retail, increasing digital adoption, and greater brand consciousness among consumers.

Outlook

The outlook for the Indian consumerware market remains strong, supported by rising domestic demand, deeper market penetration, and expanding distribution channels. The overall market is projected to reach USD 5.62 billion by 2030, growing at a CAGR of 10.7% between 2025-2030, reflecting sustained momentum across segments. Export performance also indicates steady growth, increasing from USD 1,198 million in 2014 to USD 1,381 million in 2024, and expected to reach USD 1,781 million by 2029E. Overall, the market is well-positioned for long-term expansion, driven by premiumisation, innovation, and increasing global competitiveness.

Source: Gift City Ambit

Indian Stationary Market

Overview

The Indian stationery industry in 2025 has a value of around 30,000 Crore. Supported by strong demand from the education ecosystem and growing office consumption. Rising literacy, increasing enrolments, and expansion of institutions have been key demand drivers. Urbanisation, improving incomes, and a shift towards premium and personalised products are further supporting market growth. The rise of e-commerce has also enhanced accessibility, particularly in tier 2 and tier 3 cities, strengthening market penetration.

Key Market Drivers

Strengthening Government Focus on Education

Government initiatives continue to strengthen Indias education ecosystem, supporting long-term demand for stationery products. The Union Budget 2025-26 allocated USD 1,503 to the Ministry of Education, reflecting a 6.22% increase over the previous year. Flagship programmes such as SSA, RMSA and NEP 2020, along with initiatives like Skills India and Digital India, are expanding access to education, improving enrolments and driving demand for a wider range of educational and stationery products.

Rise of Remote Work Culture

The growing adoption of remote and hybrid work models has expanded stationery demand beyond traditional office environments. As of 2024, approximately 12.7% of full-time employees worked remotely, while 28.2% followed a hybrid work model, increasing demand for home-office supplies such as planners, notebooks and organisational tools. E-commerce platforms have further strengthened product accessibility, supporting higher consumption across personal workspaces.

Expansion of Corporate Sector

Indias expanding corporate and startup ecosystem continues to create significant opportunities for the stationery industry. During FY 2025-26, the Government recognised more than 55,200 startups-the highest number recognised in a single year since the launch of the Startup India initiative. In addition, 375 companies were listed during 2025, driving demand for branded and customised stationery, including pens, notebooks and planners, to support corporate branding, employee engagement and evolving hybrid workplace requirements.

IPOs Watch 2025 IPOs List New IPOs 2025

Govt recognises 55,200 entities as startups in 2025-26 Remote Work Statistics And Trends In 2026 - Forbes Advisor INDIA

https://www.techsciresearch.com/report/india-stationery-market/28425

India School Stationery Supplies Market Size, Report 2034 IPOs Watch 2025 IPOs List New IPOs 2025

Key Challenges

Volatility in Raw Material Prices

Fluctuations in the cost of paper, plastics, and ink-driven by global supply chain disruptions-impact pricing, margins, and profitability for manufacturers.

High Market Fragmentation and Competition

The presence of multiple domestic and international players has intensified competition, leading to pricing pressures and margin compression across the industry.

Pressure from Low-Cost Imports

Increasing imports, particularly from cost-competitive markets, challenge domestic players to maintain quality while remaining price competitive.

Product Type Insights

- Paper-based products dominate the Indian stationery market due to their extensive use across education, offices, and businesses

- Notebooks, diaries, and printing paper remain essential for students, professionals, and organisations

- Strong enrolment growth in the education sector continues to drive consistent demand

- Paper remains the preferred medium for documentation, note-taking, and task organisation despite digital adoption

- High affordability, easy availability, and familiarity support widespread usage across urban and rural markets https://www.6wresearch.com/market-takeaways-view/ stationery-market-size-in-india

Outlook

The Indian stationery market is expected to maintain a stable growth trajectory, supported by strong structural demand from the education sector, increasing formalisation, and evolving consumer preferences. The market is projected to reach approximately USD 4,001.1 million by 2034, expanding at a CAGR of 4.77% during 2026-2034. This growth will be driven by rising enrolments, expanding corporate demand, and a gradual shift towards organised and branded products, positioning established players to benefit from ongoing market consolidation and premiumisation trends.

Market Size in 2025	USD 2,629.5 million
Market Forecast in 2034	USD 4,001.1 million
Market Growth Rate 2026-2034	4.77%

Indian Non Paper Stationary Market

The Indian non-paper stationery market-comprising writing instruments (pens, pencils, markers), art supplies and related products-continues to exhibit strong growth momentum, supported by structural demand from the education sector and rising formalisation. While precise market sizing varies across sources, the category forms a significant portion of the overall stationery industry and is expected to grow at a CAGR of 8-8.50% over the medium term (2023-29), outperforming the broader stationery category. https://www.6wresearch.com/industry-report/india-non-paper-stationery-market Growth in the category is primarily driven by increasing school enrolments, expansion of the education ecosystem and rising demand from offices and corporate users. The educational category remains the dominant end-user, accounting for most of the consumption, while office and institutional demand continue to provide incremental growth support. Writing instruments, particularly pens, constitute the largest revenue-contributing category within non-paper stationery, reflecting their essential usage across both academic and professional settings.

Overall, the Indian non-paper stationery market presents

a strong growth outlook, supported by favourable

demographics, increasing literacy rates and evolving

consumer preferences, positioning branded players to

benefit from sustained demand and ongoing market

consolidation.

Indian Writing Instrument Market

The Indian writing instruments market was valued at

USD 1,802.6 million in 2025 and is projected to witness

robust expansion, reaching approximately USD 2,587.3

million by 2033, registering a compound annual growth

rate (CAGR) of 4.7% over the forecast period. This strong

growth trajectory is primarily driven by Indias large

and expanding youth population, which continues to

underpin sustained demand for writing instruments

across educational and early professional segments.

Additionally, increasing enrolment levels, rising literacy

rates, and growing preference for branded and premium

products are expected to further support market

expansion over the long term.

https://www.researchandmarkets.com/reports/6176286/

india-writing-instruments-market-size-share

The Indian writing instruments market remains highly

positive, supported by favourable demographics, rising

literacy levels, and sustained investments in education

infrastructure. The market is expected to benefit from

premiumisation trends, growing adoption of branded

products, and expansion into Tier II and Tier III markets.

Further, the rapid growth of e-commerce and modern

retail channels is likely to enhance accessibility and drive

volume growth, while innovation in product design and

materials is expected to support value growth. Overall, the

industry is well-positioned for long-term expansion, with

strong underlying demand fundamentals and increasing

formalisation of the market.

Art & Craft Materials

The global arts and crafts market is showing strong and

consistent growth, valued at around USD 47.35 billion in

2025 and expected to reach USD 50.70 billion in 2026,

representing a CAGR of approximately 7.10%. Looking

further ahead, the market is anticipated to grow to USD

67.39 billion by 2030. This expansion is supported by

rising participation in hobby-based crafting, growing

consumer interest in personalised and handmade goods,

and an increasing variety of available craft materials.

Further supporting this growth are the rapid rise of

e-commerce platforms, a notable shift in consumer

preference toward sustainable and DIY products, and greater involvement in creative and recreational activities. Trends around customisation, wellness-driven hobbies, and the ongoing development of online craft communities are expected to keep the overall market outlook positive in the coming years. https://www.thebusinessresearchcompany.com/report/ arts-and-crafts-global-market-report

Indian Furniture Market

The Indian furniture industry is witnessing strong growth, with the market expected to expand from USD 29.27 billion in 2025 to USD 31.51 billion in 2026, supported by rising urbanisation, higher disposable incomes, and growth in real estate. Structural drivers such as housing initiatives, increasing urban households, and MSME formalisation are expanding demand, particularly in midrange segments.

Regulatory measures like the Furniture Quality Control Order (February 2026) are improving product standards and encouraging formalisation, while government procurement platforms are boosting institutional demand. India remains one of the fastest-growing furniture markets globally, with the residential category contributing over 70% of demand and increasing traction in office and institutional furniture. The market continues to transition towards organised and branded players, supported by e-commerce growth and rising preference for quality and sustainable products.

Market Drivers

Urbanisation and Migration-led Demand

Rising urbanisation is driving furniture demand, with the urban population expected to exceed 40% by 2030 (from 34.5% in 2021). Around 18.9% of internal migrants move to cities, leading to new household formation and increased demand for affordable, space-efficient furniture, particularly in tier-II cities.

Omnichannel and Digital Adoption

The shift towards omnichannel retail is transforming the market, with AR/VR tools improving purchase decisions and reducing returns. Platforms like ONDC and GeM are expanding market access for MSMEs, while e-commerce and digital integration are enhancing reach and supply chain efficiency.

Government Housing-led Demand

Housing initiatives such as PMAY have significantly expanded the base of first-time buyers, with over 96 Lakh urban and 2.92 Crore rural homes completed. The push towards affordable housing continues to drive demand for basic and functional furniture.

Sustainability and Material Shift

Growing focus on sustainability is driving adoption of engineered wood, low-VOC finishes, and eco-certified products. IGBC guidelines and quality regulations are further strengthening demand for environmentally compliant furniture, particularly in premium and institutional segments.

Key Challenges

Price Sensitivity and GST Impact

Furniture demand in India remains highly price-sensitive, with durable goods accounting for a limited share of household spending. The prevailing 18% GST on most furniture categories elevates end prices, restricting adoption of premium products, particularly among lower- and middle-income consumers. While certain materials like bamboo benefit from lower tax slabs, the broader category continues to face pricing constraints. Despite some improvement in disposable incomes, the transition towards premium furniture-such as solid wood and high-end seating-remains gradual due to affordability considerations.

Supply Chain Constraints and Input Volatility

The furniture industry continues to face supply-side challenges, particularly in sourcing certified timber. Dependence on a mix of domestic and imported wood, coupled with traceability issues and stringent compliance requirements, leads to cost fluctuations and procurement delays. Regulatory processes, including quarantine norms and documentation for imported timber, add to lead times and complexity, especially for MSMEs. Additionally, price volatility in key hardwoods and evolving trade regulations impact production planning and delivery timelines across the value chain.

Application-wise Demand Dynamics

- Home furniture leads the market with a 56.74% share in 2025, driven by housing expansion and demand for essential products such as beds, wardrobes, and sofas

- Increasing urbanisation and shift towards nuclear families are driving demand for compact, space-efficient furniture and modular kitchens

- Office furniture is the fastest-growing category, projected to grow at a CAGR of 11.65% through 2031, supported by hybrid work models and workspace reconfiguration

- Government procurement via GeM and rising institutional demand (hospitality, education, healthcare) are strengthening organised category participation

- Recurring replacement cycles and expanding urban housing are sustaining steady demand across economy and mid-range categories

Outlook

The Indian furniture market is poised for steady expansion, projected to grow from USD 31.51 billion in 2026 to USD 45.52 billion by 2031, at a CAGR of 7.63%. Growth will be supported by rising urbanisation, increasing housing demand, and evolving consumer preferences towards organised and branded products. Additionally, expansion in office infrastructure, institutional demand, and continued adoption of omnichannel retail are expected to sustain momentum across both residential and commercial segments. https://www.imarcgroup.com/india-furniture-market https://www.mordorintelligence.com/industry-reports/ india-furniture-market

COMPANY OVERVIEW

We are Cello World Limited, one of Indias leading consumer products companies, with a brand legacy spanning over six decades since 1962. We have established ourselves as a trusted household brand, offering a diverse portfolio across consumer houseware, writing instruments and stationery, and moulded furniture and allied products. Our product range spans everyday essentials to premium lifestyle offerings, catering to a wide spectrum of consumer needs across price points.

Our strong market position is underpinned by our focus on innovation, design-led functionality, and affordability, enabling us to remain relevant to evolving consumer preferences. With over 20,000 + SKUs and continuous product innovation, including the launch of 2000+ new SKUs in FY 2025-26, we have strengthened our presence across both core and emerging categories.

We operate an extensive distribution network, serving over 1.9+ Lakh retailers through 5000 distributors, complemented by a growing presence in modern trade, e-commerce, and international markets. Our robust manufacturing backbone, supported by 14 state-of-the-art facilities across India, enables strong control over quality, cost efficiency, and scalability.

Listed on the NSE and BSE in 2023, we continue to strengthen our brand equity and expand our product portfolio, driven by a customer-centric approach, strong operational capabilities, and a commitment to delivering innovative, high-quality products that seamlessly integrate into everyday life.

1,90,000+	14
SKU	Manufacturing Facilities
Across 3 Verticals
5,000+
Distributors

Business Model & Operating Category

We operate through three distinct and complementary business verticals, each addressing a large and growing market opportunity within the Indian consumer products landscape:

Business Vertical	Key Product Categories
Consumer Ware	Houseware, Insulated ware,
	Glassware, Opalware, Electronic
	Appliances, Cleaning Aids
Writing Instruments	Pens, Pencils, Highlighters,
	Correction Pens, Markers
	(Unomax & Cello brands)
Moulded Furniture &	Moulded Furniture, Storage
Allied Products	Crates, Dustbins, Air Coolers

Key Risks and Mitigation Measures

We adopt a proactive and structured approach to risk management, enabling us to effectively navigate economic uncertainties, operational challenges, and evolving market dynamics. Through continuous monitoring and strategic interventions, we_ remain_ well positioned to mitigate potential risks and sustain long-term growth.

Risk	Impact	Mitigation Measures
Macroeconomic	Macroeconomic conditions, including inflationary pressures, interest rate	We maintain a diversified product portfolio comprising both essential and discretionary
Factors	movements, and global uncertainties, may influence demand patterns, input costs, and our overall profitability.	categories, thereby reducing sensitivity to economic fluctuations. We continuously evaluate pricing strategies in line with prevailing market conditions. Additionally, targeted promotions, discounts, and consumer schemes support demand across segments.
Raw Material Price Risk	Raw material costs form a major share of our expenditure and are influenced by factors such as policy changes, regulatory shifts and global developments. Variations in input prices may adversely affect profitability.	We_ actively_ monitor_ input cost trends and optimises inventory management to mitigate price fluctuations. We focus on operational efficiencies to manage cost pressures. Where required, calibrated price adjustments are undertaken to partially offset increases in raw material costs.
Liquidity Risk	Liquidity management involves careful control of funds to meet operational and statutory obligations on time. It also requires maintaining adequate cash reserves and access to bank credit for unforeseen needs.	We follow a disciplined approach to cash flow management, supported by continuous monitoring of financial requirements. Adequate cash reserves and access to committed banking facilities provide financial flexibility. We also_maintain_contingency plans to address unforeseen funding requirements.
Distribution Network Risk	We utilised our distribution channels across domestic and international markets to ensure efficient product reach. Inability to maintain and strengthen this network may hinder product availability, potentially resulting in reduced market presence and share.	We continue to expand and diversify our distribution network by onboarding new partners across geographies. This reduces dependency on individual distributors while enhancing market coverage. Existing distributors are supported through incentive programmes and engagement initiatives to improve performance and loyalty.
Competition Risk	The existence of informal players and heightened rivalry within the sector creates considerable pressure. Increased competition may compress profit margins, as we may be required to reduce pricing to remain competitive.	Our broad product portfolio across multiple price points, along with a strong focus on quality, enables us to differentiate ourselves. This positioning supports sustained competitiveness in a dynamic market environment.
Counterfeit Risk	Unauthorized market players may produce and distribute imitation versions of our products, potentially harming our brand integrity and public perception.	With a legacy spanning over six decades, we have_ established_ strong brand recognition. We undertake continuous brand protection initiatives, including awareness campaigns and enforcement measures, to safeguard brand integrity and mitigate counterfeiting risks.

Risk	Impact	Mitigation Measures
Quality Risk	Quality risk represents the likelihood that products or services may fail to meet established standards, potentially affecting brand credibility and financial outcomes. This exposure may arise from production flaws, weak oversight mechanisms, or interruptions in sourcing and logistics. If not effectively mitigated, such risks can result in negative customer experiences, withdrawal of offerings from the market, and increased legal or regulatory consequences.	We have implemented stringent quality control systems across all stages of production. Dedicated teams oversee adherence to defined standards, with regular inspections conducted across sourcing, manufacturing, and packaging processes to ensure consistent product quality.
Change in Customer Preference	Changes in customer and consumer preferences may negatively affect demand.	We actively monitor evolving market trends and explores opportunities to introduce new offerings aligned with customer needs.

Financial Snapshot

CONSOLIDATED FINANCIAL HIGHLIGHTS ( _in_Crore)

Particulars	2025-26	2024-25	Variance (%)
Operating Revenue	2323.71	2,136.40	9
Other Income	55.05	44.70	23
EBITDA	526.40	554.70	-5
Interest	1.53	1.50	5.3
Depreciation	77.73	62	25.4
Profit/(Loss) Before Tax	439.7	491.30	-10.5
Tax	108.19	126.70	-14.6
Net Profit/(Loss)	331.51	338.80	-9.1
EPS (Basic)	14.7	16.16	-9.1
EPS (Diluted)	14.7	16.16	-9.1

KEY FINANCIAL RATIOS_

Particulars	2025-26	2024-25
Revenue Growth	8.8%	6.87%
Gross Margin	49.8%	51.70%
EBITDA Margin	22.7%	26%
EBIT Margin	19.3%	23.1%
PAT Margin	14.3%	17.1%
Return on Capital Employed	16.3%	20.30%
Debtors Turnover Ratio	3.30%	3.37%
Inventory Turnover Ratio	2.20%	2.09%
Current Ratio	5.87%	6.58%
Debt Equity Ratio	0%	0%
Interest Coverage Ratio	293.38%	339.27%
Return on Equity	12.3%	15.14%
Note for the client: Please provide_the numbers

Sales Distribution Network

We have established a scaled and resilient pan-India sales and distribution network, comprising 5000+ distributors and 1,80,000+ retailers, supported by a field force of 740+ sales personnel. This extensive reach underpins consistent market access, strong last-mile connectivity, and effective execution across geographies, with a category-aligned distribution model enabling targeted penetration.

We have diversified channel mix, led by General Trade ( 74.9%) and supported by Online ( 10.50%), Exports ( 9.9%), and Modern Trade ( 6.70%), provides balanced exposure to traditional and emerging consumption channels, enhancing demand capture and reducing channel concentration risk.

Operationally, the network is strengthened by integrated ERP systems and real-time secondary sales tracking, enabling accurate demand forecasting, improved inventory turns, and data-led decision-making. This technology-driven distribution framework enhances agility, supports scalable growth, and positions us to effectively respond to evolving consumer preferences and market dynamics.

Information Technology

We have adopted advanced digital systems and integrated automation across our design, manufacturing, and distribution operations to improve efficiency and optimise costs while maintaining quality standards. Our automated production facilities enable scalable, high-volume output at competitive cost levels. An Enterprise Resource Planning (ERP) system has been implemented across key segments and is being progressively extended to other business areas, facilitating seamless coordination, enhanced visibility, and data-driven decision-making. The system also supports supply chain oversight, demand monitoring, and efficient inventory management.

We have continued to upgrade the technology infrastructure to drive productivity and operational excellence. The sales function leverages digital tools to track real-time market trends and enable agile expansion strategies aligned with evolving consumer preferences. Additionally, we have strengthened our information security framework through enhanced email protection systems, robust cybersecurity protocols, and ongoing employee awareness and training programs.

Human Resource

We consider our workforce a critical source of competitive strength. Our employees possess diverse industry experience, technical capabilities, and strong functional expertise. The organisational culture promotes innovation and encourages progressive thinking to enhance overall performance. We remain committed to aligning business objectives with the professional and personal aspirations of our employees, fostering a supportive environment and a healthy work-life balance.

As of March 31, 2026, we had a workforce of 3116 employees, with women representing 20% of the total. The attrition rate on a Last Twelve Months (LTM) basis stood at 19% for 2025-26, reflecting an improvement from 20.12% in the previous year.

Internal Control System and its Adequacy

We have established a comprehensive system to ensure the utmost accuracy in all operations and 64 effective management of potential risks. This encompasses robust monitoring of our financial assets to safeguard them from unauthorized access. A dedicated team conducts regular inspections to ensure compliance, while a robust system accurately tracks expenses. Such an efficient system is vital for our success and bolsters stakeholder confidence in meeting regulatory and legal requirements.

Cautionary Statement

The statements in the Management Discussion and Analysis section describing our objectives, projections, estimates, and predictions may be considered forward looking statements. All statements that address expectations or predictions about the future, including, but not limited to, statements about our strategy for growth, product development, market positioning, expenditures, and financial results, are based on certain assumptions and expectations of future events. We cannot guarantee that these assumptions and expectations are accurate or will be realised. Our actual results, performance, or achievements may thus differ materially from those projected in such forward-looking statements. We assume no responsibility to publicly amend, modify, or revise any forward-looking statement based on any subsequent developments, information, or events. To avoid duplication and repetition, certain heads of information required to be disclosed in the Management Discussion and Analysis have been included in the Boards Report.