Dev Labtech Venture Ltd Management Discussions

The Management Discussion and Analysis ("MD&A") Report has been prepared in accordance with the applicable provisions of the Companies Act, 2013 and Regulation 34 read with Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. It aims to provide shareholders and other stakeholders with a comprehensive overview of the Companys business environment, industry developments, operational and financial performance, strategic initiatives, opportunities, risks and concerns, internal control systems, and future outlook.

This report presents Managements perspective on the Companys operations and financial performance for the financial year ended 31^st March, 2026. It is intended to assist stakeholders in understanding the key factors that have influenced the Companys performance, its business strategy, financial position, risk management framework, and the opportunities and challenges that may impact its future growth and sustainability.

(1) COMPANY OVERVIEW:

About Us

The Company was originally incorporated as "Gandhinagar Plastronics Private Limited" on 29^th April, 1993 under the provisions of the Companies Act, 1956. Subsequently, the name of the Company was changed to "Jay Gems (India) Private Limited", and a fresh Certificate of Incorporation was issued by the Registrar of Companies on 5^th February, 2010. Thereafter, pursuant to a strategic transformation of its business operations, the Companys name was changed to "Dev Labtech Venture Private Limited" on 22^nd June, 2022. Subsequently, the Company was converted into a Public Limited Company, and its name was changed to "Dev Labtech Venture Limited", for which a fresh Certificate of Incorporation dated 23^rd September, 2022 was issued by the Registrar of Companies, Ahmedabad.

Dev Labtech Venture Limited is a leading manufacturer and processor of Lab-Grown Diamonds (LGDs) and Natural Diamonds, committed to delivering superior quality, precision craftsmanship, and sustainable value to customers across domestic and international markets. Established in 1993 under the visionary leadership of Mr. Jerambhai Lavjibhai Donda, who possesses over four decades of rich experience in the diamond and jewellery industry, the Company has steadily evolved into a trusted name renowned for quality, innovation, and customer satisfaction. The Company specializes in the manufacturing, processing, polishing, and trading of premium-quality lab-grown and natural diamonds using advanced Microwave Plasma Chemical Vapor Deposition (MPCVD) technology. This state-of-the-art manufacturing process enables the Company to produce high-quality diamonds that are physically, chemically, and optically identical to mined diamonds while promoting environmentally responsible and sustainable practices.

Every diamond manufactured by the Company undergoes stringent quality control procedures and is certified by internationally recognized gemological laboratories such as the Gemological Institute of America (GIA) and the International Gemological Institute (IGI), ensuring authenticity, superior quality, and customer confidence.

With strategically located operations at Surat, Bhavnagar, and Mumbai, the Company has established an integrated business model supported by modern manufacturing infrastructure, skilled professionals, robust quality assurance systems, and an efficient supply chain. The Companys unwavering focus on innovation, operational excellence, ethical business practices, reliability, and customer-centricity has enabled it to build long-standing relationships with customers and strengthen its position in the rapidly growing global lab-grown diamond industry.

The Company continues to invest in advanced technology, research and development, process innovation, and sustainable manufacturing practices to enhance product quality, operational efficiency, and global competitiveness. By combining cutting-edge technology with traditional craftsmanship, Dev Labtech Venture Limited remains committed to creating long-term value for its stakeholders while contributing to the evolution of the diamond industry.

Mission Statement

To craft the worlds most exquisite diamonds, meticulously sourced and with skilful cut to the perfection with a strong commitment to ethical practices and sustainability, we aim to adorn lives with symbols of enduring beauty and love, while positively impacting our stakeholders and the communities we touch. Through innovation, integrity, and unwavering craftsmanship, we seek to inspire awe and celebrate lifes precious moments with each dazzling gem we create.

Vision Statement

To be the worlds premier diamond manufacturing company, inspiring awe and enchantment with every meticulously crafted gem. With precision craftsmanship and cutting-edge technology, we aim to create the most exquisite and ethically sourced diamonds which captive hearts and celebrate lifes most cherished moments. With an unwavering focus on innovation, sustainability, and ethical practices, we aim to redefine the art of diamond manufacturing, setting new industry standards that showcase our commitment to brilliance, transparency, and social responsibility. To blend cutting-edge technology with the timeless artistry of our skilled craftsmen with responsibly sourced diamonds, create a symbol of enduring love, cherished memories, and everlasting beauty by making each precious stone.

(2) GLOBAL AND INDIAN ECONOMIC OVERVIEW

Global Economic Review

The global economy demonstrated resilience during the financial year ended 31^st March, 2026 despite an increasingly complex macroeconomic environment characterized by geopolitical conflicts, evolving trade policies, inflationary pressures, and financial market volatility. While the pace of economic expansion moderated compared to previous years, robust domestic demand in several economies, resilient labour markets, easing inflation, and gradual normalization of global supply chains supported overall economic activity.

During the year, the global economy continued to navigate multiple uncertainties, including geopolitical tensions across various regions, fluctuations in commodity and energy prices, higher borrowing costs, and changing international trade dynamics. These factors adversely impacted manufacturing output, cross-border investments, and global merchandise trade, particularly in export-oriented industries.

Among major economies, the United States maintained relatively stable growth supported by resilient consumer spending, strong employment conditions, and continued investments in technology and innovation. The Euro Area experienced moderate growth amid subdued industrial production, weak manufacturing activity, and elevated energy costs. Chinas economy recorded comparatively slower expansion owing to softness in the real estate sector, cautious consumer sentiment, and moderation in exports. Emerging market economies, particularly India and several Southeast Asian nations, continued to outperform advanced economies, supported by favourable demographic trends, domestic consumption, and structural reforms.

Global inflation continued its downward trajectory during the year as supply chain disruptions eased and commodity prices stabilized. Consequently, several central banks adopted a more balanced monetary policy stance after an extended period of aggressive interest rate tightening. Nevertheless, geopolitical uncertainties and trade-related developments continued to pose downside risks to the global economic outlook.

Global Economic Outlook

According to the International Monetary Fund (IMF) World Economic Outlook (April 2026), the global economy is projected to grow by approximately 3.1% in 2026 and 3.2% in 2027. Although inflation is expected to moderate further, the pace of global economic recovery is likely to remain uneven across regions. Key risks that may influence global economic growth include:

? Escalation of geopolitical conflicts and regional instability;

? Rising trade protectionism and tariff-related measures;

? Persistent inflationary pressures in certain economies;

? Volatility in commodity, energy and currency markets;

? Financial market uncertainty arising from changing monetary policies; and

? Disruptions in global supply chains and international logistics.

Despite these challenges, the long-term outlook remains cautiously optimistic. Continued technological advancements, particularly in artificial intelligence and digital transformation, increasing investments in renewable energy and sustainability, gradual easing of financial conditions, and stronger international cooperation are expected to support global economic growth over the medium term. Governments and central banks across the world are expected to continue implementing prudent fiscal and monetary policies to maintain macroeconomic stability while fostering sustainable and inclusive economic development.

Indian Economic Review

India continued to reinforce its position as one of the worlds fastest-growing major economies during the financial year ended 31st March, 2026. Despite an uncertain global economic environment marked by geopolitical tensions, trade disruptions, inflationary pressures, and volatile commodity prices, the Indian economy remained resilient, supported by robust domestic demand, sustained government capital expenditure, prudent macroeconomic policies, and a stable financial system.

The countrys growth was primarily driven by strong private consumption, healthy investment activity, increasing infrastructure development, expanding manufacturing capabilities, and continued momentum in the services sector. Government initiatives such as Make in India, Digital India, Production Linked Incentive (PLI) Schemes, PM Gati Shakti, and the continued emphasis on ease of doing business further strengthened industrial growth and enhanced investor confidence.

The manufacturing sector benefited from increased public and private investments, improving supply chains, and capacity expansion across several industries. The services sector remained a key growth driver, supported by strong performance in financial services, information technology, hospitality, logistics, healthcare, and retail trade. Meanwhile, the agriculture sector continued to provide stability to the economy through improved productivity and resilient rural demand.

Inflation remained broadly within the Reserve Bank of Indias (RBI) tolerance band during most of the year, supported by effective monetary policy measures and easing food price pressures. Indias banking system continued to exhibit healthy asset quality, strong capital adequacy, and robust credit growth, thereby supporting economic expansion.

India also witnessed continued growth in foreign direct investment (FDI), increasing digital adoption, expanding exports in select sectors, and sustained momentum in infrastructure development. These factors, together with strong demographic advantages and a growing middle-income population, continue to position India as an attractive global investment destination.

Indian Economic Outlook

According to the International Monetary Fund (IMF) and other leading multilateral institutions, India is expected to remain the fastest-growing major economy over the medium term. The IMF projects Indias Gross Domestic Product (GDP) to grow by approximately 6.2% in FY 2026 and 6.3% in FY 2027, supported by resilient domestic demand, rising private investment, favourable demographics, and continued structural reforms.

Going forward, continued public infrastructure spending, increasing urbanisation, digital transformation, manufacturing expansion, and rising consumer spending are expected to provide a strong foundation for sustainable economic growth. Government initiatives promoting exports, renewable energy, semiconductor manufacturing, logistics infrastructure, and ease of doing business are likely to further enhance Indias long-term competitiveness.

However, the growth outlook remains subject to certain external risks, including geopolitical conflicts, global economic slowdown, volatility in crude oil and commodity prices, exchange rate fluctuations, inflationary pressures, and evolving international trade policies. Nevertheless, Indias strong macroeconomic fundamentals, sound financial sector, stable policy framework, and expanding domestic market are expected to support sustained economic growth and create significant opportunities for businesses across sectors.

(3) INDUSTRY STRUCTURE AND DEVELOPMENTS:

Industry Structure

The Gems and Jewellery industry is one of the most significant contributors to the global economy, representing a unique blend of craftsmanship, technology, luxury, and cultural heritage. The industry encompasses mining, manufacturing, processing, polishing, certification, wholesale trading, retailing, and exports of diamonds, gemstones, precious metals, and jewellery. Continuous innovation, increasing consumer awareness, sustainability initiatives, digital transformation, and changing lifestyle preferences are reshaping the industrys global landscape.

India continues to maintain its position as one of the worlds leading centres for the manufacturing, cutting, polishing, and export of diamonds and jewellery. The sector plays a vital role in the countrys economy by generating substantial foreign exchange earnings and providing employment to millions of people, including skilled artisans, technicians, and professionals across the value chain. India processes and polishes a significant proportion of the worlds diamonds by volume and has established itself as a preferred global sourcing destination owing to its skilled workforce, advanced manufacturing capabilities, competitive cost structure, and well-developed supply chain.

The Indian Gems and Jewellery industry is witnessing a gradual transformation from an unorganized market to an organized and branded retail ecosystem. Rising disposable incomes, increasing urbanization, greater consumer preference for certified jewellery, and expanding digital commerce are driving demand across domestic and international markets. Consumers are increasingly seeking transparency, quality assurance, ethical sourcing, and internationally certified products, thereby creating opportunities for technologically advanced and quality-focused manufacturers.

The global diamond industry continues to evolve with changing consumer behaviour, technological advancements, and sustainability considerations. Demand for certified diamonds, customized jewellery, and environmentally responsible products continues to grow, while digital platforms, omnichannel retailing, artificial intelligence, and advanced manufacturing technologies are transforming customer engagement and operational efficiencies across the value chain.

Industry Developments

The Lab-Grown Diamond (LGD) industry continues to emerge as one of the fastest-growing segments within the global gems and jewellery sector. Manufactured using advanced technologies such as Microwave Plasma Chemical Vapor Deposition (MPCVD) and High-Pressure High Temperature (HPHT), lab-grown diamonds possess the same physical, chemical, and optical characteristics as natural diamonds while offering a sustainable and environmentally responsible alternative.

India has emerged as one of the worlds leading manufacturing hubs for lab-grown diamonds, supported by its established diamond processing ecosystem, technological expertise, skilled workforce, and favourable government initiatives. Increasing global acceptance of lab-grown diamonds, particularly among environmentally conscious consumers and younger demographics, continues to drive demand across key international markets.

During FY 2025-26, the industry witnessed several significant developments:

Growing Acceptance of Lab-Grown Diamonds: Consumer awareness regarding sustainability, ethical sourcing, and affordability continued to accelerate the adoption of lab-grown diamonds across domestic and international markets. The segment is expected to witness strong long-term growth, supported by increasing acceptance among jewellery manufacturers, retailers, and end consumers.

Expansion of Certification Infrastructure: International certification agencies expanded their presence in India, particularly in Surat, strengthening consumer confidence through internationally recognized grading and certification standards. Enhanced certification capabilities continue to improve transparency, product quality, and global acceptance of Indian-manufactured diamonds.

Surat Diamond Bourse and Infrastructure Development: The operationalisation of the Surat Diamond Bourse, one of the worlds largest diamond trading centres, has significantly strengthened Indias diamond trading ecosystem. The integrated infrastructure, customs facilities, and business ecosystem are expected to improve operational efficiencies, facilitate global trade, and reinforce Surats position as a global diamond hub.

Technology and Digital Transformation: Rapid adoption of automation, artificial intelligence (AI), machine learning, advanced grading technologies, 3D design, and digital commerce is transforming the diamond and jewellery industry. Technology-driven manufacturing processes are improving productivity, precision, traceability, quality assurance, and customer experience.

Sustainability and Responsible Manufacturing: Sustainability has become a key competitive differentiator within the industry. Consumers increasingly prefer environmentally responsible, ethically sourced, and traceable products. Lab-grown diamonds continue to gain popularity due to their comparatively lower environmental footprint and alignment with global sustainability objectives.

Government Support and Industry Initiatives: The Government of India continues to support the gems and jewellery sector through various policy initiatives aimed at promoting exports, strengthening manufacturing capabilities, encouraging technology adoption, improving infrastructure, and enhancing ease of doing business. Industry bodies such as the Gem & Jewellery Export Promotion Council (GJEPC) continue to collaborate with stakeholders to strengthen Indias global competitiveness and expand export opportunities.

Global Trade Environment: The industry continued to face challenges arising from geopolitical uncertainties, evolving trade policies, logistics disruptions, and fluctuations in commodity prices. At the same time, new trade agreements, market diversification strategies, and increasing demand from emerging economies are creating new opportunities for Indian exporters to expand their global footprint.

Industry Outlook

The long-term outlook for the Indian Gems and Jewellery industry remains positive, supported by favourable demographic trends, rising disposable incomes, increasing urbanisation, expanding organized retail, and growing acceptance of certified and sustainable jewellery products. The Lab-Grown Diamond segment, in particular, is expected to witness robust growth over the coming years, driven by technological advancements, competitive pricing, environmental sustainability, and changing consumer preferences.

Indias strong manufacturing capabilities, globally recognized craftsmanship, integrated supply chain, and supportive policy framework position the country to further strengthen its leadership in the global diamond and jewellery industry. Companies focusing on quality, innovation, operational excellence, sustainability, and customer-centricity are expected to be well-positioned to capitalize on emerging opportunities and create long-term value for stakeholders.

(4) SWOT ANALYSIS:

STRENGTH:

Wide Varieties of our products: Our product portfolio consists of wide range of products which differentiate us from other companies. The wide variety of products in lab grown diamonds and natural diamonds enable us to cater our customer taste and preferences.

Experienced Promoters: Our promoters are experienced in our line of business. Our management and employee team combine expertise and experience to outline plans for the future development of the company. Our Promoters have significant industry experience and have been instrumental in the consistent growth of our company.

Customer Satisfaction: High customer satisfaction has consistently been one of our core strengths, driving strong brand loyalty and repeat business.

Quality of our products: Consistent product quality has enabled us to build long-term relationships and stand out in a competitive market.

Integrated Manufacturing facility: At the Company, we take pride in our reliable infrastructure, which forms the backbone of our business operations. Built on the principles of efficiency and resilience, our infrastructure ensures seamless and uninterrupted performance to meet the demands of our customers and stakeholders.

Our reliable infrastructure comprising strong capabilities, quality manufacturing facilities and efficient distribution network are all geared up to help us deliver Consistent Performance.

Our strategy to have our own manufacturing capacities to ensure absolute high-quality products and even more robust supply chain is playing out well. Now all factories are gradually enhancing utilisation and reducing our dependency on outsourcing.

We believe that a reliable infrastructure is the cornerstone of our commitment to delivering excellence. It empowers us to provide consistent, top-quality products/services and enables us to focus on what truly matters - exceeding our customers expectations and driving success in the ever-changing marketplace. Emphasis on Quality, Outstanding Quality System, Skilled & Knowledgeable Team, best in class equipment.

Worlds Leading Hub: India is a global leader in cutting and polishing diamonds, handling over 90% of the worlds diamonds by volume.

Well-trained employee base and Skilled Workforce: Availability of a Well-trained employee base and highly skilled, low-cost labor force with generations of experience in craftsmanship.

Strong Domestic Demand: Deep-rooted cultural and religious traditions drive steady domestic demand, especially Diamond and Jewellery in India has traditionally been an integral part of weddings and festivals.

An essential part of Indian culture: Indian customers often purchase contemporary jewellery as a form of self-expression and this has led to evolution of distinct targeted collections including wedding wear, work wear, regular or daily wear and fashion wear as well as very premium limited edition signature collections.

Export Powerhouse: Jewelry is one of Indias top export items, particularly to the USA, UAE, and Europe.

Timely Delivery of Products and Established Supply Chain: Presence of Timely Delivery of Products and well-integrated supply chains, from sourcing to retail. The Company has well established relationship with our supplier.

Government support: Realizing the sectors potential, the Government has identified it to be a focused area for Export promotion councils and schemes like SEZs, duty-free imports for exporters, etc. and Adopting policies of Make in India and Design in India there is a strong intent to push growth. The Government has also undertaken various measures to promote investments and upgrade technology & skills to promote Brand India in the international market.

WEAKNESS:

Dependence on Imports: Heavy reliance on imported raw diamonds and gold, exposing the industry to global price volatility and currency risks.

Fragmented Industry: Dominated by unorganized players, leading to inconsistent quality, limited scalability, and tax challenges.

Lack of Innovation: Limited focus on design innovation and branding compared to global luxury jewelry brands.

Environmental and Ethical Concerns: Issues like conflict diamonds, lack of transparency, and unsustainable practices may tarnish the industry image.

OPPORTUNITY:

Growing Middle Class and Increasing affordability: Rapidly expanding economy, increasing urban per capita income and governments focus to double farmers income by this year, aspiration for luxury items boost domestic consumption of branded jewelry, huge opportunities will open up with increasing affordability of this segment.

Digital and E-commerce: Expansion of online jewelry retail opens access to new markets and younger demographics.

Lab-Grown Diamonds (LGDs): Opportunity to become a global leader in eco-friendly and affordable LGDs.

Global Expansion: Indian brands have the opportunity to expand globally, especially in diaspora-rich countries.

Brand Development: Scope to build strong Indian jewelry brands that compete with global luxury players.

Stable asset class: Diamond and Jewellery has historically been one of the most stable assets providing investors best returns over a long-term horizon, compared to other assets.

E-commerce: With the rising internet penetration in the country, e-commerce is gaining significant boost with rising consumer confidence along with the advantage of ease in shopping, lucrative discounts, access to wider variety, free shipping, and quality assurance. Though, an online sale through online channel is currently miniscule, it is gaining importance facilitating jewellers in reaching out to more customers.

Changes in lifestyle: Diamond and Jewellery sector is witnessing changes in consumer preferences due to adoption of western lifestyle.

THREATS:

Fluctuating Gold and Diamond Prices: Market remains highly sensitive to global commodity price changes which can directly impact consumer demand, sales volume, and inventory valuation.

High Regulatory Pressure: Stringent regulations on imports, hallmarking, and taxation (like GST) can impact operations.

International Competition: Rising competition from China, Thailand, and African countries in manufacturing and design. The Indian jewellery retail sector remains highly competitive, with participation from organized and unorganized players, as well as online platforms, potentially impacting market share and pricing dynamics.

Changing Consumer Preferences: Younger consumers may prefer minimalist, artificial, or branded luxury jewelry over traditional designs.

Geopolitical and Economic Instability: Export-heavy nature makes the industry vulnerable to global trade tensions, sanctions, and slowdowns.

Regulatory framework: Changes in government policies related to import duties, compliance requirements, and regulatory norms may affect operating costs and market dynamics.

Liquidity crisis: The industry is highly capital intensive in nature with long working capital cycles, since the jewellery conversion from gold typically requires 15 days. Strength of the balance sheet and access to easy credit is often required to facilitate and sustain ease in operations.

(5) RISK AND CONCERNS:

The Company operates in a highly competitive market with rapidly changing innovative product and pricing. We are subject to the threat of our competitors launching new products in our markets before we make corresponding updates and development to our own product range. This could render our products and services outdated and could result in loss of market share. To reduce this risk, we undertake new product with wide variety of customer centric design development and maintain strong supplier relationships to ensure that we have products at various stages. Competitor risk also manifests itself in price pressures which are usually experienced in more mature markets. This results not only in downward pressure on our gross margins but also in the risk that our products are not considered to represent value for money. The Company therefore monitors market prices on an ongoing basis. The Company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. External funding facilities are managed to ensure that both short term and long-term funding is available to provide short term flexibility whilst providing sufficient funding to the Companys forecast of working capital requirements. The Company does not perceive any risks or concerns other than those that are common to the industry such as regulatory risks, exchange risk, cyber risks and other commercial and business-related risks as mentioned above.

(6) INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:

The Company has a proper and adequate system of internal controls. This ensures that all transactions are authorized, recorded and reported correctly, and assets are safeguarded and protected against loss from unauthorized use or disposition. In addition, there are operational controls and fraud risk controls, covering the entire spectrum of internal financial controls. An extensive programme of internal audits and management reviews supplements the process of internal financial control framework. Properly documented policies, guidelines and procedures are laid down for this purpose. The internal financial control framework has been designed to ensure that the financial and other records are reliable for preparing financial and other statements and for maintaining accountability of assets.

In addition, the Company has identified and documented the risks and controls for each process that has a relationship to the financial operations and reporting. The Company also has an Audit Committee to interact with the Statutory Auditors, Internal Auditors and Management in dealing with matters within its terms of reference. This Committee mainly deals with accounting matters, financial reporting and internal controls.

(7) HUMAN RESOURCES & INDUSTRIAL RELATIONS:

The Company firmly believes that its employees are its most valuable asset and the cornerstone of its long-term success. The Companys human resource philosophy is centered on fostering a performance-driven, competency-based, and inclusive work culture that promotes accountability, integrity, innovation, collaboration, and continuous learning.

The Company remains committed to attracting, developing, and retaining talented professionals by providing a conducive work environment, equal growth opportunities, and performance-oriented career development. Regular in-house and external training programmes are conducted to enhance employees technical knowledge, professional skills, leadership capabilities, and overall competency, enabling them to effectively meet evolving business requirements.

The Company continues to strengthen its organizational capabilities by implementing robust human resource practices, improving employee engagement, encouraging teamwork, and promoting a culture of operational excellence and continuous improvement. Various initiatives are undertaken to enhance productivity, efficiency, and accountability across all functional areas while ensuring employee well-being and workplace safety.

Industrial relations remained cordial and harmonious throughout the financial year, reflecting the Companys commitment to maintaining a healthy and collaborative work environment. The total numbers of employees as on 31^st March, 2026 were 30 (Thirty).

(8) DISCUSSION ON FINANCIAL PERFORMANCE OF THE COMPANY:

On Standalone basis:

During the Financial Year 2025-26, the Company recorded a Net Income of Rs. 5,932.94 lakh, as compared to Rs. 5,241.91 lakh in the previous financial year, reflecting a growth of approximately 13.18%. The increase in revenue was primarily driven by improved business volumes and continued demand for the Companys products.

Despite the growth in revenue, the Net Profit after Tax (PAT) stood at Rs. 0.61 lakh, as against Rs. 129.38 lakh in the previous year. The decline in profitability was mainly attributable to higher cost of material expenses and change in inventory. The Company continued to focus on strengthening its market presence, expanding its operational capabilities, and investing in long-term growth initiatives, which also impacted profitability during the year.

On Consolidated basis:

During the Financial Year 2025-26, the Company reported a Net Income of Rs. 16,721.29 lakh, as compared to Rs. 5,241.91 lakh in the previous year. The substantial increase was primarily on account of the consolidation of the financial performance of its subsidiaries and expansion of the overall scale of operations.

The Consolidated Net Profit after Tax stood at Rs. 956.88 lakh, compared with Rs. 129.38 lakh in the previous year, representing a significant improvement in overall profitability. The strong consolidated performance reflects the positive contribution from subsidiary operations, improved operational efficiencies, and the Companys strategic initiatives to strengthen its business portfolio. The consolidated financial results demonstrate the Companys continued focus on sustainable growth, business diversification, and long-term value creation for its stakeholders.

(9) DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIO:

Pursuant to provisions of Regulation 34(3) of SEBI (LODR) Regulation, 2015 read with Schedule V part B (1) details of changes in Key Financial Ratios is given hereunder:

Standalone basis

Ratios	F.Y. 2025-26	F.Y. 2024-25	Percentage of Variance	Reason for variance
Current ratio (in times)	12.55	25.83	-51.40%	Decrease in Stock in Trade
Debt - Equity ratio (in times)	0.07	0.05	58.01%	Due to Taken New Loan
Debt Service coverage (in times)	15.48	0.63	2367.67%	Due to Taken New Loan
Return on equity (in %)	0.01%	4.28%	-99.67%	Loss Gross Profit Margin Compare to Last Year
Inventory Turnover (in times)	1.42	1.59	-10.69%	Not Applicable
Trade receivables turnover (in times)	11.99	15.24	-21.28%	Not Applicable
Trade payables turnover (in times)	34.91	75.51	-53.78%	Repayment of Creditor in a Year
Net capital turnover (in times)	1.49	1.76	-15.33%	Not Applicable
Net profit ratio (in %)	0.01%	2.47%	-99.59%	Loss Gross Profit Margin Compare to Last Year
Return on capital employed (in %)	1.20%	5.69%	-78.88%	Variation is mainly due to changes in operating profitability
Return on investment (in %)	-	-	-	-

Consolidated basis

Ratios	F.Y.			F.Y.			Percentage					Reason for variance
	2025-26			2024-25			of Variance
Current ratio (in times)	1.46			25.83			-94.36%					Decrease in current ratio is mainly due to an increase in current liabilities and comparatively lower increase in current assets during the year
Debt - Equity ratio (in times)	0.06			0.05			35.84%					Increase is mainly due to additional borrowings during the year
Debt Service coverage (in times)	103.62			0.63			16414.83%					Increase is mainly due to additional borrowings during the year
Return on equity (in %)	20.98%			4.28%			390.54%					Increase is mainly attributable to substantial improvement in profit after tax during the year in relation to the average shareholders funds.
Inventory Turnover (in times)	2.65			1.59			67.06%					Improved inventory utilisation and faster movement of inventory during the year
Trade receivables turnover (in times)	3.88			15.24			-74.54%					Due to an increase in average trade receivables and/or comparatively lower credit sales
Trade payables turnover (in times)		3.56			75.51			-95.29%			Decrease is mainly due to an increase in average trade payables and a longer credit period availed from suppliers during the year.
Net capital turnover (in times)			3.80			1.76			115.91%	Increase is mainly due to more efficient utilisation of working capital for generating revenue during the year
Net profit ratio (in %)			5.72%			2.47%			131.85%	Significant improvement is mainly due to higher profit after tax
Return on capital employed (in %)			20.92%			5.69%			267.73%	Increase is mainly due to higher operating profitability and improved utilisation of the capital employed during the year.
Return on investment (in %)			-			-			-	-

(10) CAUTIONARY STATEMENT:

Statements in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates, expectations, or outlook may constitute forward-looking statements within the meaning of applicable laws and regulations. These statements are based on certain assumptions and expectations of future events and are subject to various risks and uncertainties. Actual results may differ materially from those expressed or implied due to changes in economic conditions, government policies, market dynamics, regulatory developments, competition, foreign exchange fluctuations, and other factors beyond the Companys control. Readers are cautioned not to place undue reliance on these forward-looking statements.