Clay Craft India Ltd Management Discussions

MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF

OPERATIONS

You should read the following discussion in conjunction with our restated financial statements attached in the chapter titled Financial Information of the Company beginning on page 193. You should also read the section titled Risk Factors on page 21 and the section titled Forward Looking Statements on page 19 of this Red Herring Prospectus, which discusses a number of factors and contingencies that could affect our financial condition and results of operations. The following discussion relates to us, and, unless otherwise stated or the context requires otherwise, is based on our Restated Financial Statements.

Our financial statements have been prepared in accordance with Indian GAAP, the Companies Act and the SEBI (ICDR) Regulations and restated as described in the report of our auditor dated June 05, 2026 which is included in this Red Herring Prospectus under Financial Statements. The Restated Financial Information has been prepared on a basis that differs in certain material respects from generally accepted accounting principles in other jurisdictions, including US GAAP and IFRS. Our financial year ends on March 31 of each year, and all references to a particular financial year are to the twelve-month period ended March 31 of that year.

BUSINESS OVERVIEW

We are a manufacturer and distributor of ceramic tableware products in India, engaged in the design, development, production and sale of a wide range of ceramic tableware including dinner sets, tea and coffee serving sets, mugs, tumblers, platters, bowls, and table top accessories. Our product portfolio addresses the diverse requirements of retail consumers, institutional buyers, and the hospitality industry. We market our products under our in-house brands, Clay Craft and JCPL, in addition to our proprietary brands, we have entered into arrangements with various customers for whom we undertake design, development, and manufacturing activities.

We also offer customized ceramic solutions for corporate and institutional clients based on specific requirements and have developed a product range for the HoReCa (Hotel, Restaurant, and Catering) segment to meet the operational needs of the industry. Our capability to serve both broad-based and specialized demand segments, supported by our design and manufacturing infrastructure, enables us to operate across domestic and select international markets. As of March 31, 2026, we offer approximately 5,770 stock-keeping units (SKUs) across various product categories under different brands. The table below presents the brands and the range of products offered under each category -

			Product Category
Brand	Dinnerware	Mugs	Platters & accessories	Tea & coffee service sets	Others*	Total
Clay Craft	1113	2016	295	642	153	4219
JCPL	490	585	163	229	20	1487
Others*	2	25	0	1	36	64
Total	1605	2626	458	872	209	5770

*these include products like bowls, pasta plates, soup sets, tumblers, table top accessories etc.

The demand in the industry in which we operate is influenced by consumer preferences that are shaped by both functional needs and lifestyle choices. Additionally, factors such as disposable income, lifestyle upgrades, growth in the hospitality and food service sectors, and increasing awareness of sustainability and health considerations also impact product demand. We maintain a consistent focus on brand development and allocate significant resources toward enhancing brand visibility and market outreach. We have established an in-house design team comprising product designers, graphic designers, surface pattern designers, and packaging designers. This team is engaged in the ongoing development and innovation of new designs and concepts across various shapes, sizes, colours, and combinations, with the objective of aligning with evolving customer preferences. We have also developed an in-house laboratory and testing team to ensure that the raw materials used meet required quality standards. Both of our manufacturing facilities are certified under ISO 9001:2015 for quality management systems. We believe that our focus on design and development, product quality, and customer satisfaction has positively contributed to the perception and acceptance of our brands in the market.

We have expanded our product portfolio to include tableware products like Dinner Sets, Tea & Coffee Serving Sets, Mugs, Tumblers, Vaccum Bottle, Platters, Bowls, Table top Accessories etc. The product wise revenue in the last three years is as per the below table: -

( Rs. in lakhs )

	FY	% to Total	FY	% to Total	FY	% to Total
Product Name
	2025-26	Sales	2024-25	Sales	2023-24	Sales
Mugs	7116.76	39.56 %	6070.62	39.95 %	5915.68	40.68 %
Dinnerware	6535.63	36.33 %	5723.89	37.67 %	5047.90	34.71 %
Tea & Coffee Service Sets	3092.53	17.19 %	2428.84	15.99 %	2686.60	18.47 %
Platters & Accessories	700.93	3.90 %	384.12	2.53 %	357.77	2.46 %
Clay Craft India Limited
Others	542.82	3.02 %	586.75	3.86 %	534.60	3.68 %
Total	17988.67	100 %	15194.22	100 %	14542.55	100 %

*Others include bowls, vacuum bottles, table top accessories, Gift items etc.

We primarily operate on a business-to-business (B2B) model, supplying the majority of our products through our own distribution network, large format retail chains and using different retail channels. Our Company is committed to offering quality ceramic tableware at competitive prices and aims to foster long-term relationships with customers by adhering to industry standards and meeting specific business requirements. As of March 31, 2026, our distribution network includes approximately 132 distributors across major states and union territories in India, supported by a dedicated sales and marketing team of 47 personnel. Over the years, we have developed and maintained long-standing relationships with our distributors, large format retail chains and retailers, which has contributed to consistent market access and customer loyalty. In addition to traditional distribution, our products are available through other trade channels like, e-commerce marketplaces, and our own websites. We have also entered into commercial arrangements with large-format retail chains for the sale of our products through their outlets across India and with e-commerce platforms for online sales.

We cater to bulk orders from corporate clients and government departments, offering customized solutions as per their procurement needs. We also market our products through Griha, a retail store operated by our promoter group, further expanding our customer touchpoints. Our branding and marketing initiatives are managed by our in-house marketing team. We have developed a strong brand identity through sustained marketing efforts and long-term customer relationships, particularly under our in-house brands such as Clay Craft, JCPL, and other licensed global brands. Our geography-wise revenue from majority of the states for the last three years is as per the below table: -

(In Lakhs)

State	FY 25-26	%	FY 24-25	%	FY 23-24	%
Karnataka	2205.86	12.26	1306.85	8.60	1431.55	9.84
Rajasthan	2109.15	11.72	1800.34	11.85	1603.55	11.03
Haryana	1929.26	10.72	1948.14	12.82	1583.75	10.89
Delhi	1871.61	10.40	1681.72	11.07	1464.47	10.07
Tamil Nadu	1650.59	9.18	923.19	6.08	717.84	4.94
Maharashtra	1543.38	8.58	1641.81	10.81	1791.96	12.32
Uttar Pradesh	1423.43	7.91	1086.53	7.15	921.87	6.34
Punjab	1422.36	7.91	1088.72	7.17	1235.4	8.50
West Bengal	557.42	3.10	438.52	2.89	435.78	3.00
Gujarat	511.06	2.84	586.41	3.86	581.17	4.00
Madhya Pradesh	440.22	2.45	496.96	3.27	400.23	2.75
Chandigarh	439.18	2.44	408.97	2.69	495.01	3.40
Telangana	329.18	1.83	448.22	2.95	555.06	3.82
Others	1526.64	8.50	1265.81	8.33	1097.33	7.55
Export	29.33	0.16	72.02	0.47	227.58	1.56
Total	17,988.67	100.00	15,194.22	100.00%	14,542.55	100.00%

*Others include states and union territories such as Jammu & Kashmir, Assam, Kerala, Odisha, Bihar, Jharkhand, Chhattisgarh etc.

# Export includes revenue from sales to countries like Nepal, Norway, United Kingdom, Sri Lanka, Argentina, Hong Kong, Singapore and United Arab Emirates.

Our Company was founded in 1988, in response to growing market demand, we established our first manufacturing facility at F-766, F-766A, F-769, F-772, Road No. 1-D, VKIA, Jaipur spread over an area of approx 17431.04 square meters. Subsequently, driven by market response and increased product demand, we established a second manufacturing facility at A-424 to A-427 and B-420 to B-423 RIICO, Manda-2 Industrial Area, Near Kaladera, Jaipur 303712 in 2022 spread across approximately 72,000 square meters. As of the date of this Red Herring Prospectus, we own and operate two manufacturing facilities located in Rajasthan, with a combined installed capacity of approximately 6,000 metric tonnes (MT) per annum.

Over the years, we have undertaken capital expenditure to enhance production capacity and modernize our manufacturing infrastructure. Our capital expenditure towards installation and upgradation of plant and machinery stood at approximately Rs. 397.98 lakhs, Rs. 668.90 lakhs and Rs. 1227.31 lakhs for Fiscal 2026, 2025 and 2024, respectively. We are conscious of our environmental responsibilities and have adopted practices such as waste-water recycling and use of solar enery. Both of our factories have rooftop Solar Plant fulfilling the major power consumption needs at locations and have established ETP and STP Plants. As global demand increases for eco-conscious products, our commitment to sustainability enhances our appeal to modern consumers and institutional buyers.

We are currently led by our Promoters and Directors, Rajesh Narain Agarwal, Vikas Agarwal, Bharat Agarwal & Deepak Agarwal who, together with our Key Managerial Personnel (KMPs) and senior management team, bring industry-specific experience that has contributed meaningfully to the growth and operational development of our Company. Our Promoter, Vikas Agarwal, is the

Managing Director of the Company has approximately 26 years of experience in the industry, Rajesh Narain Agarwal, Whole-time Director has an experience of approximately 35 years, Bharat Agarwal, Whole Time Director of our Company has a work experience of over 24 years and Deepak Agarwal, Whole Time Director & Chief Financial Officer of our Company has an experience of over 15 years in Ceramic Tableware Industry. The experience of our Promoters in the sector has enabled the Company to gain a deeper understanding of consumer preferences in the Indian market. This has contributed to the development of a wide-ranging product portfolio that caters to diverse consumer needs, offering contemporary designs across multiple material types, product categories, and price points.

Key Financial Performance

( In Lakhs except percentages and ratios)

Key Financial	FY 2025-26	FY 2024-25	FY 2023-24
Performance	(Consolidated)	(Consolidated)	(Standalone)
Revenue from operations (1)	17988.67	15194.22	14542.55
EBITDA (2)	4195.94	3539.06	2864.95
EBITDA Margin (3)	23.33 %	23.29 %	19.70 %
PAT (4)	2701.49	2075.74	1350.20
PAT Margin (5)	15.02 %	13.66 %	9.28 %
RoE(%) (6)	17.71 %	16.21 %	12.24 %
RoCE (%) (7)	18.26 %	16.69 %	14.42 %

Notes:

(1) Revenue from operation means revenue from sales and other operating revenues

(2) EBITDA is calculated as Profit after tax (incl. Share of Profit/(Loss) in Associate) + Tax + Depreciation + Interest Expenses - Other Income (3) EBITDA Margin is calculated as EBITDA divided by Revenue from Operations (4 PAT is calculated as Profit after tax (incl. Share of Profit/(Loss) in Associate) (5) PAT Margin is calculated as PAT for the year divided by revenue from operations.

(6) Return on Equity is ratio of Profit after Tax (incl. Share of Profit/(Loss) in Associate) and Average Shareholder Equity

(7) Return on Capital Employed is calculated as EBIT (incl. Share of Profit/(Loss) in Associate) divided by capital employed, which is which is defined as shareholders equity plus total borrowings {current & non-current} plus deferred tax liabilities less Deferred Tax assets

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

For details in respect of Statement of Significant Accounting Policies, please refer to Restated Financial Statements beginning on page 193 of this Red Herring Prospectus.

1. Changes in focus, laws and regulations or change in Government Policies towards Ceramic Tableware Industry;

2. Any change in the customer preferences and design requirement;

3. Any adverse developments affecting our operations in the state of Rajasthan where our manufacturing facilities are located;

4. Loss of any of our top customers;

5. Any adverse development in the HORECA Sector (Hotel, Restaurant and Catering Sector);

6. Interruptions in the supply of raw materials;

7. Our ability to retain our key managements persons and other employees;

8. Our failure to keep pace with rapid changes in technology;

9. Our ability to make interest and principal payments on our existing debt obligations and satisfy the other covenants contained in our existing debt agreements; 10. Companys ability to successfully implement its growth strategy and expansion plans; 11. Inability to successfully obtain registrations in a timely manner or at all; 12. Occurrence of Environmental Problems & Uninsured Losses; 13. Conflicts of interest with affiliated companies, the promoter group and other related parties; 14. Any adverse legal proceedings initiated against our company or its promoters, directors and KMPs; and 15. Macroeconomic factors such as level of economic activity in the regions and cities in which we operate, general economic, business and political conditions in the industry, inflation, deflation, interest rate fluctuations and emergence of alternative destinations, impacting our growth.

Discussion on Result of Operations

The following discussion on results of operations should be read in conjunction with the Restated Financial Statements for the years ended on March 31, 2026, March 31, 2025 and March 31, 2024,

(Rs. in Lakhs)

		For the year/period ended
	2026	% of	2025	% of	2024	% of
Particulars	Consolidated	Total Income	Consolidated	Total Income	Standalone	Total Income
Revenue from Operations	17988.67	97.46%	15,194.22	98.38%	14,542.55	98.94%
Other Income	468.19	2.54%	249.48	1.62%	156.27	1.06%
Total Income (I+II)	18456.86	100.00%	15,443.70	100.00%	14,698.82	100.00%
Expenses:
Cost of Material Consumed	3,876.90	21.01%	3,449.68	22.34%	3,604.40	24.52%
Purchase of Stock in Trade	10.45	0.06%	18.37	0.12%	38.75	0.26%
Change in Inventories of Work in progress and finished goods	-318.30	-1.72%	52.56	0.34%	-213.9	-1.46%
Employee Benefits Expense	4,170.96	22.60%	3,552.38	23.00%	3,422.44	23.28%
Finance Costs	412.33	2.23%	427.9	2.77%	497.18	3.38%
Depreciation and Amortization Expense	635.53	3.44%	601.41	3.89%	596.14	4.06%
Other Expenses	6,062.72	32.85%	4,491.51	29.08%	4,825.92	32.83%
Total Expenses	14,850.57	80.46%	12,593.81	81.55%	12,770.92	86.88%
Profit before Exceptional and Extraordinary Items and Tax (III-IV)	3,606.29	19.54%	2,849.89	18.45%	1,927.90	13.12%
Exceptional Items	0	0.00%	-	-	0	-
Profit before Extraordinary Items and Tax (V-VI)	3,606.29	19.54%	2,849.89	18.45%	1,927.90	13.12%
Extraordinary Items	0	0.00%	-	-	0	-
Profit before Tax (VII-VIII)	3,606.29	19.54%	2,849.89	18.45%	1,927.90	13.12%
Tax expense:
- Current Tax	872.83	4.73%	712.09	4.61%	457.55	3.11%
- Deferred Tax	41.95	0.23%	-28.6	-0.19%	120.15	0.82%
Total tax expenses	914.78	4.96%	683.49	4.43%	577.7	3.93%
Profit for the period from continuing operations (IX-X)	2,691.51	14.58%	2,166.41	14.03%	1,350.20	9.19%
Profit/(Loss) for the period from discontinuing operations	0	0.00%	-	-	-	-
Tax expense of discontinuing operations	0	0.00%	-	-	-	-
Profit/(Loss) from discontinuing operations (after tax) (XII-XIII)	0	0.00%	-	-	-	-
Profit for the period (XI+XIV)	2,691.51	14.58%	2,166.41	14.03%	1,350.20	9.19%
Loss of Associate (Crown Craft (India) Private Limited)	9.98	0.05%	-90.67	-0.59%	0	-
Profit for the Year	2,701.49	14.64%	2,075.74	13.44%	1,350.20	9.19%

Revenue from Operations

Revenue from operations comprises revenue from design, development, production and sale of a wide range of ceramic tableware including dinner sets, tea and coffee serving sets, mugs, tumblers, Vaccum Bottles, platters, bowls, and table top accessories to customer across different industries in both domestic market and customers located in different countries internationally.

Other Income

Other income includes (i) Interest income on Fixed deposit; (ii) Dividend Income; (iii) Profit on sale of fixed assets etc.

Expenses

Our expenses comprise (i) Cost of Material consumed; (ii) employee benefits expense; (iii)finance costs; (iv) depreciation and amortisation expense; and (v) other expenses.

Employee Benefit Expense

Employee benefit expenses primarily include (i) salaries wages and other expenses; (ii) director remuneration (iii) contributions to statutory fund; and (iv) staff welfare expenses (v) gratuity and leave encashment expenses.

Depreciation and Amortization expenses

Depreciation and amortization expenses primarily include depreciation expenses on our office Plant & machinery, Building, furniture and computers etc.

Other Expenses

Other expenses comprise (i) Consumption Stores & Spares; (ii) Power and fuel; (iii) Repair & Maintenance expenses; (iv) Packing Material Consumed expenses; (v) CSR Expenses; (vi) Travelling Expense; (vii) Vehicle Maintenance Expense; (viii) Royalty Exp.; (ix) legal and professional expenses; (x) Sales Forwarding expenses; (xi) Commission paid on sales; (xii) Bad debts; (xiii) Exhibition expenses; (xv) Discount Allowed;

(xvi) other miscellaneous expenses;

Financial Performance Highlights for the Year Ended on March 31, 2026 (Based on Restated Financial Statements)

Total Income

Total income for the period ended on March 31, 2026 stood at 18456.86 Lakhs, which includes revenue from operation amounting to 17988.67 lakhs and other income of 468.19 lakhs.

Revenue from Operations

During the year ended on March 31, 2026 revenue from operations stood at 17988.67 Lakhs. The revenue from operations includes the revenue from design, development, production and sale of a wide range of ceramic tableware including dinner sets, tea and coffee serving sets, mugs, tumblers, Vaccum Bottles, platters, bowls, and table top accessories

Other Income

During the year ended on March 31, 2026, other income was 468.19 Lakhs. Major portion of the other income includes interest income on FDR.

Cost of Material consumed

During the year ended on March 31, 2026, cost of material consumed stood at 3876.90 lakhs. This is the major portion of the total expenses of the company representing 21.01% of the total income of the Company.

Employee benefits expenses

Our Company has incurred 4170.96 Lakhs as employee benefits expense for the year ended on March 31, 2026.

Depreciation and amortization expenses

Depreciation for the Year ended March 31, 2026 was 635.53 Lakhs.

Other expenses

Other Expenses for the year ended March 31, 2026 stood at 6062.72 Lakhs.

Restated Profit before tax:

The Company reported Restated profit before tax for year ended March 31, 2026 of 3606.29 Lakhs.

Restated profit after tax:

The Company reported Restated profit after tax for Year ended March 31, 2026 of 2701.49 Lakhs.

Comparison of Financial Year 2026 with Financial Year 2025 (Based on Restated Financial Statements)

Total Income

Our total income has increased by 19.51% to 18456.86 lakhs in fiscal 2026 from 15443.70 lakhs in Fiscal 2025. The revenue from operations has increased as the revenue earned from existing customers increased from total income has increased as the revenue from the operations has increased due to the increased business from the existing and new customers by 18.39%, the revenue from operations increased compared to earlier years due to the demand of the product across the industry.

Revenue from Operations

Our revenue from operations has increased by 18.39% to 17988.67 lakhs in Fiscal 2026 from 15194.22 lakhs in Fiscal 2025. The total revenue has increased as the revenue from the operations earned from existing customers has increased to 16155.28 lakhs in Fiscal 2026 from 13202.70 lakhs in Fiscal 2025 i.e. an increase of 22.36% as compared to earlier years. Further, the overall market demand for our product also increased from Corporate customers, Direct HORECA customers and Distributor which has resulted into the increase in the revenue. The combined revenue earned from these three sectors increased to 13434.85 lakhs in Fiscal 2026 from 10413.9 lakhs in Fiscal 2025, i.e. an increase of 29.01% as compared to earlier years.

(Amt in lakhs except percentage)

Particulars	2025-26	%	2024-25	%	2023-24	%
Existing Customers	16155.28	89.81%	13202.7	86.89%	13454.2	92.52%
New Customers	1833.39	10.19%	1991.52	13.11%	1088.32	7.48%
Total	17988.67	100.00%	15194.2	100.00%	14542.6	100.00%

Detailed bifurcation of sales on channel wise basis -

(Amt in Rs. Lakhs)

Particulars	2025-26	%	2024-25	%	2023-24	%
Corporate	2047.20	11.38	1269.43	8.35	920.92	6.33
Direct HORECA	1475.53	8.20	978.60	6.44	673.42	4.63
Distributor	9912.12	55.10	8165.87	53.74	8354.59	57.45
Export	29.33	0.16	72.02	0.47	227.58	1.56
Government Supply #	374.86	2.08	385.95	2.54	248.48	1.71
Modern Retail*	2828.50	15.72	2976.05	19.59	2628.45	18.07
Online Retail	813.68	4.52	807.37	5.31	928.59	6.39
Others**	507.44	2.82	538.92	3.55	560.51	3.85
Total	17988.67	100	15194.22	100	14542.55	100

# Government supply means supplies to the Government owned entities

* Modern Retail includes supplies to retailers or chain stores which sell products through e-commerce, supermarkets, and Omni-channel platforms. ** Others include miscellaneous corporate bodies, which primarily includes transactions relating to the sale of machinery and parts, scrap materials, and small retail supplies.

Other Income

Our other income was 249.48 lakhs in Fiscal 2025, which has increased by 87.67% to 468.19 lakhs in Fiscal 2026. The main reason for such increase is the increase in the interest income on fixed deposits which increased to 289.87 lakhs in Fiscal 2026 from 148.99 lakhs in Fiscal 2025.

Expenses

Our total expenses have increased by 17.92% to 14850.57 lakhs in Fiscal 2026 from 12593.81 lakhs in Fiscal 2025. The main reason for increase is the business efficiency on account of increase in the revenue which resulted into stabilized expenses in comparison to the total income of the company.

Cost of Goods sold

The cost of goods sold increased from 3520.61 lakhs to 3569.04 lakhs representing an increase of approximately 1.38%. The cost of goods sold increased in absolute values however, the COGS to revenue ratio improved from 23.17% to 19.84% due to change in product mix, reduction in wastage, reduction in the cost of raw material such calcium phosphate and New Zealand Premium China Clay during the year.

Employee benefits expenses

Employee benefit expenses increased by 17.41% from 3552.38 lakhs in Fiscal 2025 to 4170.96 lakhs in Fiscal 2026. Such increase was due to new employees hired in the different departments and increments of the continuing employees.

Depreciation and amortization expenses

Depreciation, and amortization expenses increased by 5.67% from 601.41 lakhs in Fiscal 2025 to 635.53 lakhs in Fiscal 2026. The company works on high capex model which requires company to invest regularly in the fixed assets, pursuant to which the expenses of the company has increased for depreciation and amortization.

Other expenses

Other expenses increased by 34.98%, from 4,491.51 lakhs in Fiscal 2025 to 6,062.72 lakhs in Fiscal 2026. The primary driver of this increase was the change in the Companys product mix, which was aligned with the growth in revenue during the year. Further, the major contribution to the increase in the other expenses were due to the increase in the power and fuel expenses which increased by 30.87%, from 1698.15 lakhs in Fiscal 2025 to 2222.29 lakhs in Fiscal 2026, also the cost of packaging material consumed increased by 48.72%, from 1147.96 lakhs in Fiscal 2025 to 1707.25 lakhs in Fiscal 2026, which was attributable to the demand of specific packaging requirements of the customers.

Tax Expenses

Increase in the tax expenses is on account of increase in the revenue and resulting profits of the company.

Profit after Tax

During Fiscal 2026, the Company reported improved operational and financial performance, with EBITDA increasing from 3,539.06 lakhs in Fiscal 2025 to 4,195.94 lakhs in Fiscal 2026. Revenue from operations increased by 18.39%, rising from 15,194.22 lakhs in Fiscal 2025 to 17,988.67 lakhs in Fiscal 2026. During the same period, the cost of goods sold (COGS) increased marginally by 1.38%, from 3,520.61 lakhs to 3,569.04 lakhs. Consequently, the COGS-to-revenue ratio improved significantly from 23.17% in Fiscal 2025 to 19.84% in Fiscal 2026, due to reduction in raw material prices, operational efficiency and favourable product mix. Employee Benefits Expense increased by 17.41% during the year, primarily due to the recruitment of additional personnel to support the Companys growth initiatives. Further, finance costs and depreciation and amortisation expenses remained largely stable despite the increase in revenue from operations, adding to the PAT margins. Other expenses increased by 34.98%, from 4,491.51 lakhs in Fiscal 2025 to 6,062.72 lakhs in Fiscal 2026, mainly on account of higher power and fuel costs, as well as increased consumption of packaging materials. Consequently, the profitability improved, with PAT margin increasing from 13.66% in Fiscal 2025 to 15.02% in Fiscal 2026.

Comparison of Financial Year 2025 with Financial Year 2024 (Based on Restated Financial Statements)

Total Income

Our total income has increased by 5.07% to 15443.70 lakhs in fiscal 2025 from 14698.82 lakhs in Fiscal 2024. The total income has increased as the revenue from the operations has increased due to the increased business from the existing and new customers by 4.48%, the revenue is marginally better than last year due to the demand of the product across the industry.

Revenue from Operations

Our revenue from operations has increased by 4.48% to 15194.22 lakhs in Fiscal 2025 from 14542.55 lakhs in Fiscal 2024. The total revenue has increased as the revenue from the operations has increased marginally due to the increased business from the existing and new customers, overall market demand for our product has resulted into the increase in the revenue.

(Amt in lakhs except percentage)

Particulars	2024-25	%	2023-24	%	2022-23	%
Existing Customers	13202.7	86.89%	13454.2	92.52%	12673.3	87.21%
New Customers	1991.52	13.11%	1088.32	7.48%	1859.28	12.79%
Total	15194.2	100.00%	14542.6	100.00%	14532.6	100.00%

Detailed bifurcation of sales on channel wise basis -

(Amt in Rs. Lakhs)

Particulars	2024-25	%	2023-24	%	2022-23	%
Corporate	1269.43	8.35	920.92	6.33	626.59	4.31
Direct HORECA	978.60	6.44	673.42	4.63	554.25	3.81
Distributor	8165.87	53.74	8354.59	57.45	8179.68	56.29
Export	72.02	0.47	227.58	1.56	322.48	2.22
Government Supply #	385.95	2.54	248.48	1.71	158.76	1.09
Modern Retail*	2976.05	19.59	2628.45	18.07	3117.27	21.45
Online Retail	807.37	5.31	928.59	6.39	708.13	4.87
Others**	538.92	3.55	560.51	3.85	865.39	5.95
Total	15194.22	100	14542.55	100	14532.55	100

# Government supply means supplies to the Government owned entities

* Modern Retail includes supplies to retailers or chain stores which sell products through e-commerce, supermarkets, and Omni channel platforms. ** Others include miscellaneous corporate bodies, which primarily includes transactions relating to the sale of machinery and parts, scrap materials, and small retail supplies.

Other Income

Our other income was 156.27 lakhs in Fiscal 2024, which has increased by 59.65% to 249.48 lakhs in Fiscal 2025. The main reason for such increase is the increase in the interest income on fixed deposits.

Expenses

Our total expenses have decreased by 1.39% to 12593.81 lakhs in Fiscal 2025 from 12770.93 lakhs in Fiscal 2024. The main reason for decrease is the business efficiency on account of increase in the revenue which resulted into stabilized expenses in comparison to the total income of the company.

Cost of Goods sold

The cost of goods sold decreased from 3429.25 lakhs to 3520.61 lakhs representing an increase of approximately 2.66%. The main reason for increase in the cost of goods sold was due to increase in the Revenue. The cost to service ration change in the portion of product mix of the company.

Employee benefits expenses

Employee benefit expenses increased by 3.80% from 3422.44 lakhs in Fiscal 2024 to 3552.38 lakhs in Fiscal 2025. Such increase was due to new employees hired in the different departments.

Depreciation and amortization expenses

Depreciation, and amortization expenses increased by 0.88% from 596.14 lakhs in Fiscal 2024 to 601.41 lakhs in Fiscal 2025. The company works on high capex model which requires company to invest regularly in the fixed assets, that is why the expenses of the company has increased for dep and amortization.

Other expenses

Other expenses decreased by 6.93% from 4825.92 lakhs in Fiscal 2024 to 4491.51 lakhs in Fiscal 2025. The main reason for decrease in the other expenses is the business efficiency and product mix of the company on account of increase in the revenue, the company was able to achieve higher sales target by keeping the other expenses portion little low. There are certain expenses which are of fixed nature as well which remains approximate to same irrespective of the increase in the revenue. For details of other expenses refer to

Tax Expenses

Increase in the tax expenses is on account of increase in the revenue and resulting profits of the company.

Profit after Tax

During FY 2024-25, the Company reported an improvement in its operational performance, with EBIDTA increasing by 4.19% as against a decline of 2.76% in the previous year. The Cost of Material Consumed remained largely stable at 23.17% in FY2025 against 23.59% during FY2024, pursuant to raw material rate stabilization, efficient material procurement, consumption and economies of scale. Employee Benefit Expenses decreased marginally by 0.15%, manufacturing Expenses decreased by 4.77%, due to decrease in consumption of stores & spares, power and fuel and repair & maintenance cost. Administrative and Other Expenses rose slightly by 0.11%, while Selling Expenses increased by 1.03%, due to higher marketing and distribution efforts to enhance revenue growth. This lead to the rise in EBIDTA margin FY 2024-25.

Information required as per Item (II)(C)(iv) of Part A of Schedule VI to the SEBI Regulations:

An analysis of reasons for the changes in significant items of income and expenditure is given hereunder:

1. Unusual or infrequent events or transactions

There has not been any unusual trend on account of our business activity. Except as disclosed in this Red Herring Prospectus, there are no unusual or infrequent events or transactions in our Company.

2. Significant economic changes that materially affected or are likely to affect income from continuing operations.

There are no significant economic changes that may materially affect or likely to affect income from continuing operations.

3. Known trends or uncertainties that have had or are expected to have a material adverse impact on sales, revenue or income from continuing operations.

Apart from the risks as disclosed under Section Risk Factors beginning on page 21 of the Red Herring Prospectus, in our opinion there are no other known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations.

4. Future changes in relationship between costs and revenues

Other than as described in the sections Risk Factors , Our Business and Managements Discussion and Analysis of Financial Condition and Results of Operations on pages 21, 137 and 259 respectively, to our knowledge, no future relationship between expenditure and income is expected to have a material adverse impact on our operations and finances.

5. Segment Reporting

Our business activity primarily falls within a single business and geographical segment, other than as disclosed in Restated Financial Statements on page 193 we do not follow any other segment reporting

6. Status of any publicly announced New Products or Business Segment

Except as disclosed in the Chapter Our Business , our Company has not announced any new product or service.

7. Seasonality of business

Our business and revenue from operations are subject to higher demand during festival season. For further information, see Industry Overview and Our Business on pages 110 and 137, respectively of this Red Herring Prospectus.

8. Dependence on single or few customers

Given the nature of our business operations, we do not believe our business is dependent on any single or a few customers. However, the concentration of our revenue is depended on our top customers. In Fiscals 2026, 2025 and 2024, our top 3 clients contributed 16.17%, 15.59% and 19.72%, respectively, to the total revenue from operations. In Fiscals 2026, 2025 and 2024, our top 5 clients contributed 26.07%, 20.85% and 22.58%, respectively, to the total revenue from operations. Further, for the

Fiscals 2024, 2025 and 2026, our top 10 clients contributed 36.84%, 34.44% and 33.73% respectively, to the total revenue from operations.

9. Competitive conditions

Competitive conditions are as described under the Chapters Industry Overview and Our Business beginning on pages 110 and 137, respectively of this Red Herring Prospectus.

10. Details of material developments after the date of last balance sheet i.e. March 31, 2026.

Except as mentioned below, there is no material development that has taken effect after the date of last Balance sheet i.e. March 31, 2026-

Started construction of new manufacturing facility at Manda, Rajasthan on April 24, 2026.

CAPITALISATION STATEMENT

(Rs. in Lakhs)

	Pre Issue	Post Issue*
Particulars	As on 31 st March, 2026
Borrowings
Short Term Debt	2,752.34	-
Long Term Debt	2,245.40	-
Total Debts	4,997.74	-
Shareholders funds
Equity share capital	1,514.63	*
Reserve and surplus	15,091.79	*
Total shareholders funds	16,606.41	*
Long Term Debt / Shareholders funds	0.14	*
Total Debt / Shareholders funds	0.30	*

* The corresponding post issue figures are not determinable at this stage.

Notes:

1. Short term Debts represent which are expected to be paid/payable within 12 months and includes installment of term loans repayable within 12 months.

2. Long term Debts represent debts other than Short Term Debts as defined above but excludes installment of term loans repayable within 12 months grouped under other current liabilities.

3. The figures disclosed above are based on restated statement of Assets and Liabilities of the Company as at March 31, 2026.