Dhaval Packaging Ltd Management Discussions

The following discussion and analysis of our financial condition and results of operations for the financial years ended on 2026, 2025 and 2024 is based on, and should be read in conjunction with, our Restated Financial Statements, including the schedules, notes and significant accounting policies thereto, included in the section titled "Restated Financial Statements" beginning on page 238 of this Red Herring Prospectus. Our Restated Financial Statements have been derived from our audited financial statements and restated in accordance with the SEBI ICDR Regulations and the ICAI Guidance Note.

You should read the following discussion of our financial condition and results of operations together with our restated financial statements included in this Red Herring Prospectus. You should also read the section titled "Risk Factors" beginning on page 22 of this Red Herring Prospectus, which discusses a number of factors, risks and contingencies that could affect our financial condition and results of operations. Our fiscal year ends on March 31 of each year, so all references to a particular fiscal year are to the twelve-month period ended March 31 of that year.

In this section, unless the context otherwise requires, any reference to "we", "us" or "our" refers to Dhaval Packaging Limited, our Company. Unless otherwise indicated, financial information included herein are based on our "Restated Financial Statements for the financial years ended on 2026, 2025 and 2024 included in this Red Herring Prospectus beginning on page 238 of this Red Herring Prospectus.

Note: Statement in the Management Discussion and Analysis Report describing our objectives, outlook, estimates, expectations or prediction may be "Forward Looking Statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to our operations include, among others, economic conditions affecting demand/supply and price conditions in domestic and overseas market in which we operate, changes in Government Regulations, Tax Laws and other Statutes and incidental factors.

BUSINESS OVERVIEW

Our Company, Dhaval Packaging Limited, was incorporated as a private limited company on November 02, 2015 at Sanand, Gujarat and was subsequently converted into a public limited company on October 08, 2025. We design, manufacture, and supply plastic packaging solutions for domestic and international markets. Our core philosophy is to translate brand intent into manufacturable and scalable packaging solutions for food and FMCG categories such as sweets, dairy, dry fruits, bakery and other related items. We position ourselves as a solutions partner that aligns design, materials, labelling, and tooling with production realities so that packaging enhances shelf presence, protects product integrity, and supports reliable throughput on customer lines.

Our products span two categories.

1. IML Containers: In-Mold Labelling (IML) is the cornerstone of our business operations. In IML, a pre-printed label is placed inside the mold before plastic is injected; allowing the label to fuse with the product surface. This eliminates post-molding labelling and delivers a finish that is durable, tamper-resistant, and resistant to moisture, scratches, and chemicals. For food and dairy applications in particular, IML combines brand impact with process efficiency, enabling consistent artwork reproduction, line speed compatibility, and improved pack life under real-world handling conditions, footprint in both domestic and international markets through innovation, quality, and customer-centric service.

These are food-grade, tamper-evident packaging containers across types and sizes, suitable for categories such as ice cream, butter, curd, yogurt, ready-to-eat foods, sweets and other perishables. The Company currently offers around 39 SKUs under this segment, designed to meet precise functional and quality requirements.

2. SAW Pipe Protection Plastic Caps (End Caps): We manufacture precision-engineered SAW pipe protection plastic caps (End Caps), including PE plugs and recessed caps, designed to cover pipe and tube ends to prevent damage, contamination, and corrosion during storage, transportation, or handling. The End Caps segment serves industrial sectors such as oil & gas, construction, infrastructure, and heavy engineering.

For more details, please refer to the section titled "Business Overview" beginning on page 138 of this Red Herring Prospectus.

The dual product approach enables us to address both consumer facing packaging requirements where hygiene, branding, and functionality are critical and industrial needs, where durability and protection are paramount. Set out below are a few key performance indicators:

FINANCIAL KPIs

A list of our KPIs for the financial year ended on March 31, 2026, March 31, 2025, and March 31, 2024 is set out below:

( in Lakhs, unless otherwise specified)

Particulars	Financial year ended March 31, 2026	Financial year ended March 31, 2025	Financial year ended March 31, 2024
Revenue from Operations(1)	6,503.18	5,226.28	4,799.32
Cost of goods sold as % of revenue from operations (%)(2)	71.85%	74.12%	83.69%
EBITDA(3)	1,392.55	1,022.20	498.79
EBITDA margin (%)(4)	21.41%	19.56%	10.39%
EBIT(5)	1,239.18	928.37	289.51
Profit for the year (PAT)	803.89	604.22	155.11
PAT margin (%)(6)	12.33%	11.52%	3.23%
Return on Capital Employed (ROCE) (%)(7)	22.58%	25.28%	12.38%
Return on Equity (ROE) (%)(10)	31.58%	49.80%	46.62%
Debt to equity ratio (times) (11)	0.78	0.82	4.70
Fixed asset turnover ratio (times) (12)	2.57	2.84	3.36

As certified by Peer Reviewed Auditor of our Company i.e., M/s. S. K. Bhavsar & Co., Chartered Accountants by way of their certificate dated June 29, 2026.

Notes:

1. Revenue from Operations means the Revenue from Operations as appearing in the Restated Financial Statements.

2. Cost of goods sold is calculated as Cost of Material Consumed + Changes in inventories of Finished Goods + Other Direct Expense. Cost of goods sold as % of revenue from operations means Cost of goods sold divided by Revenue from Operations.

3. EBITDA is calculated as Profit before tax + Depreciation & Amortisation + Finance Cost - Other Income.

4. EBITDA Margin is calculated as EBITDA divided by Revenue from Operations.

5. EBIT is calculated as Profit before tax + Finance Cost - Other Income.

6. PAT Margin is calculated as PAT for the period/year divided by Total Income.

7. Return on Capital Employed is ratio of EBIT and Capital Employed.

8. Net worth/ Shareholders equity means the aggregate value of the paid-up share capital and all reserves created out of the profits and securities premium account.

9. Capital Employed is calculated as Net worth + Long Term Borrowings + Short Term Borrowings.

10. Return on Equity is ratio of Profit after Tax and Average Shareholders equity 11. Debt to Equity Ratio is ratio of Total Debt and Total Shareholders equity

12. Fixed Asset Turnover Ratio is calculated as Revenue from Operations divided by Average Fixed Assets.

OPERATIONAL KPIs

Below is an overview of the operational KPIs we track in addition to the financial KPIs mentioned above:

Particulars	Financial year ended March 31, 2026	Financial year ended March 31, 2025	Financial year ended March 31, 2024
Total number of customers served (Nos.)	667	659	634
Unit sold (kgs)	25,08,160.75 Kg	19,46,786.72 Kg	22,01,986.49 Kg

As certified by Peer Reviewed Auditor of our Company i.e., M/s. S. K. Bhavsar & Co., Chartered Accountants by way of their certificate dated June 29, 2026.

The table below sets forth the breakdown of our segment wise revenue from operations for the Fiscal 2026, Fiscal 2025 and Fiscal 2024:

( in Lakh except the percentage)

Segment Category	FY 2025-26	FY 2024-25	FY 2023-24
	Amount	%age of Revenue	Amount	%age of Revenue	Amount	%age of Revenue
IML Containers (A)	4,747.83	73.01%	4,025.83	77.03%	3,208.61	66.86%
End Caps (B)	1,755.35	26.99%	1,200.45	22.97%	1,590.72	33.14%
Total (A+B)	6,503.18	100.00%	5,226.28	100.00%	4,799.32	100.00%

As certified by Peer Reviewed Auditor of our Company i.e., M/s. S. K. Bhavsar & Co., Chartered Accountants by way of their certificate dated June 29, 2026.

SIGNIFICANT DEVELOPMENTS AFTER MARCH 31, 2026

Subsequent to the filing of the Draft Red Herring Prospectus on March 16, 2026, our Promoter, Mr. Dhaval Nanalal Dagla, transferred 25,000 Equity Shares of the Company to Mr. Dhruv Murlidhar Malani (Public Shareholder) on June 22, 2026. In accordance with Regulation 274 of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended, the Book Running Lead Manager, vide its letter dated June 23, 2026, reported the aforesaid transaction to BSE Limited (the Stock Exchange) within the prescribed timeline.

Further, on July 3, 2026, subsequent to the filing of the Draft Red Herring Prospectus, Mr. Dhaval Nanalal Dagla transferred

(i) 25,000 Equity Shares to Mr. Dhruv Murlidhar Malani (Public Shareholder),

(ii) 25,000 Equity Shares to Mr. Jaymin Rameshchandra Contractor (Promoter Group), and

(iii) 25,000 Equity Shares to Mrs. Mudrika Hetal Shah (Public Shareholder). In accordance with Regulation 274 of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended, the Book Running Lead Manager, vide its letter dated July 4, 2026, reported the aforesaid transactions to BSE Limited (the Stock Exchange) within the prescribed timeline.

The aforesaid transfers of Equity Shares do not have any impact on the operations, profitability, financial position, assets, liabilities, or cash flows of our Company.

SIGNIFICANT FACTORS AFFECTING OUR RESULTS OF OPERATIONS AND FINANCIAL CONDITION

Our business is subject to various risks and uncertainties, including those discussed in the section titled "Risk Factors" on page 22 beginning of this Red Herring Prospectus.

1. Disruptions to the supply, or increases in price of raw materials and finished products

Raw materials price volatility caused by various factors such as the quality and availability of supply, consumer demand, changes in government programs and regulatory sanctions. Our suppliers may be unable to provide us with a sufficient quantity of our raw materials at a suitable price for us to meet the demand for our products. The prices and supply levels of raw materials are dependent on factors, which are not in our control such as general economic conditions, competition, production levels and transportation costs.

Any increase in raw material prices may affect our procurement of raw materials and will result in corresponding increases in our product costs, while the increase in the selling price of the finished products may not be in proportionate to the increase in raw material price. Such change in pricing may adversely affect our sales, cash flow and our overall profitability.

Our Companys cost of raw material consumed was 59.29%, 64.04% and 74.17% of our revenues from operation for the Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively. If we are unable to manage these costs or increase the prices of our products to offset these increased costs, our margins, cash flows and our profitability may be adversely affected.

2. Concentration of business operations in the State of Gujarat

Currently, our manufacturing operations are located in the State of Gujarat. This geographic concentration exposes us to region-specific risks such as local regulatory changes, economic or demographic shifts, or competitive pressures in the region. Any adverse developments in Gujarat may materially impact our business prospects, financial condition and results of operations.

3. Our business is dependent on our manufacturing facility and the loss of or shutdown of operations of any of these

facilities could adversely affect our business

Our facility in Gujarat are subject to operating risks, such as shutdowns due to the breakdown or failure of equipment, power supply or processes, performance below expected levels of output or efficiency, inadequate utilisation rates, obsolescence of equipment, labour disputes, strikes, lockouts, industrial accidents, disruption by extremist groups, or any other reason, and the need to comply with the directives and regulations of the Government of India ("GoI") and relevant state government authorities. Our operations involve a significant degree of integration, and our results of operations are dependent on the successful operation of each facility. Although we take precautions to minimize the risk of any significant operational problems at our facilities, our business, financial condition, results of operations and prospects may be adversely affected by any disruption of operations at our facilities.

4. Competition

The plastic packaging and end-cap market in which we operate is highly and increasingly competitive and unorganised, and our results of operations and financial condition are sensitive to, and may be materially adversely affected by competitive pricing and other factors. Competition may result in pricing pressures, reduced profit margins, lost market share or a failure to grow our market share, any of which could substantially harm our business and results of operations.

5. Dependence on the knowledge and expertise of our Promoters, Directors, KMPs and SMPs

We depend on the management skills and guidance of our Promoter for development of business strategies, monitoring their successful implementation and meeting future challenges. Further, we also significantly depend on the expertise, experience and continued efforts of our Key Managerial Personnel and Senior Management. Our future performance will depend largely on our ability to retain the continued service of our management team. If one or more of our Key Managerial Personnel or Senior Management are unable or unwilling to continue in his or her present position, it could be difficult for us to find a suitable or timely replacement and our business, financial condition and results of operations could be adversely affected.

6. Lapses in precision, accuracy or quality control in our products may lead to customer dissatisfaction, product rejections, reputational damage, or financial losses

Our customers often require packaging that meets precise specifications, quality standards, and regulatory/compliance norms. Any lapse in formulation, quality control or adherence to manufacturing standards may lead to product rejections, customer dissatisfaction, loss of orders, reputational damage, or financial losses.

Other factors beyond those identified above may materially affect our results of operations and financial condition. For further details, see the sections entitled "Risk Factors" and "Business Overview" on pages 22 and 138 in this Red Herring Prospectus.

SIGNIFICANT ACCOUNTING POLICIES

For significant accounting policies please refer Significant Accounting Policies, under "Restated Financial Statements" on page 238 of this Red Herring Prospectus.

MAIN COMPONENTS OF OUR INCOME AND EXPENDITURE

Revenue

Revenue from Operations

Revenue from operations across product verticals comprises (i) IML Containers and (ii) End Caps.

Other Income

Other income comprises of interest income, duty drawback, freight recovered, foreign exchange fluctuation gain(net).

Expenses

Expenses comprised of cost of materials consumed, changes in inventories of stock in trade, employee benefits expense, finance costs, depreciation and amortisation expenses and other expenses.

Cost of material consumed

Cost of material consumed include value of inventory of raw material and accessories at the beginning of the period along with value purchased during the period less value at the end of period.

Changes in inventories of Finished Goods

Changes in inventories of stock in finished goods comprises of expenses attributable to an increase or decrease in inventory levels of finished goods.

Employee benefits expense

Employee benefits expense comprised of director remuneration, salary, wages and bonus, contribution to provident funds and other funds, gratuity and employee welfare expenses.

Finance cost

Finance cost comprises interest on working capital facilities, term loans, interest on unsecured loans and bank charges, loan documentation and processing charges.

Depreciation and Amortisation

Depreciation comprises depreciation on building, furniture and fixtures, electric fittings, office equipments, computers, vehicles, plant and machinery and amortisation on software.

Other expenses

Other expenses primarily comprise of factory expense, Job Work / Labour & processing charges, electricity burning charges, freight charges; administrative & other expenses among others.

Tax expense

Our tax expense or credit for the period represents the tax payable on the current periods taxable income based on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences.

RESULTS OF OPERATIONS

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

	FY 2025-26	FY 2024-25	FY 2023-24
Particulars	Amount	% of Total Revenue	Amount	% of Total Revenue	Amount	% of Total Revenue
Revenue From Operations	6,503.18	99.74%	5,226.28	99.68%	4,799.32	99.82%
Other Income	17.05	0.26%	16.60	0.32%	8.56	0.18%
Total Revenue	6,520.23	100.00%	5242.88	100.00%	4807.89	100.00%
Cost of Material Consumed	3,855.79	59.14%	3346.76	63.83%	3559.57	74.04%
Changes in inventories	(151.70)	(2.33%)	(64.95)	(1.24%)	(4.82)	(0.10%)
Employee Benefits Expenses	277.97	4.26%	238.58	4.55%	160.49	3.34%
Finance Costs	184.42	2.83%	142.09	2.71%	95.23	1.98%
Depreciation	153.37	2.35%	93.83	1.79%	209.28	4.35%
Other Expenses	1,128.57	17.31%	683.69	13.04%	585.29	12.17%
Total Expenses	5,448.42	83.56%	4,440.00	84.69%	4,605.05	95.78%
Profit before tax	1,071.81	16.44%	802.88	15.31%	202.84	4.22%
Tax Expense
- Current Tax	223.80	3.43%	170.42	3.25%	39.48	0.82%
- Deferred Tax	44.12	0.68%	28.24	0.54%	8.25	0.17 %
Profit (Loss) for the year	803.89	12.33%	604.22	11.52%	155.11	3.23%

COMPARISON OF FINANCIAL YEAR ENDED 2026 TO FINANCIAL YEAR ENDED 2025

	2025-26	2024-25
Particulars	Amount	Amount	% Change
Revenue From Operations	6,503.18	5,226.28	24.43%
-In Mould Label containers	4,747.83	4,025.83	17.93%
-End Caps (Pipe protection Caps)	1,755.35	1,200.45	46.22%
Other Income	17.05	16.60	2.74%
Total Revenue	6,520.23	5,242.88	24.36%
Cost of Material Consumed	3,855.79	3,346.76	15.21%
Changes in inventories	(151.70)	(64.95)	133.55%
Employee Benefits Expenses	277.97	238.58	16.51%
Finance Costs	184.42	142.09	29.79%
Depreciation & Amortisation	153.37	93.83	63.46%
Other Expenses	1,128.57	683.69	65.07%
Total Expenses	5,448.42	4,440.00	22.71%
Profit before tax	1,071.81	802.88	33.50%
Tax Expense
- Current Tax	223.80	170.42	31.33%
- Deferred Tax	44.12	28.24	56.21%
Profit (Loss) for the year	803.89	604.22	33.05%

Total Income

Our total income increased by 24.36% from 5,242.88 lakhs in the financial year ended March 31, 2025, to 6,520.23 lakhs in the financial year ended March 31, 2026, primarily due to higher revenue from operations.

Revenue from operations

Revenue from operations increased by 24.43% from 5,226.28 lakhs in the financial year ended March 31, 2025, to 6,503.18 lakhs in the financial year ended March 31, 2026. The increase was primarily due to 17.93% growth in revenue from the IML segment and 46.22% growth in revenue from the End Cap segment.

The growth in the revenue from operation was driven by an increase in total plant installed capacity from 8,000 kg per day in the financial year ended March 31, 2025, to 8,400 kg per day in the financial year ended March 31, 2026, coupled with higher capacity utilisation, which increased to 7,560 kg per day (90.00%) in the financial year ended March 31, 2026 from 6,778 kg per day (84.73%) in the financial year ended March 31, 2025. In addition, the Company commenced the in-house manufacturing of End Caps throughout the financial year as against procurement through trading arrangements during a major part of the previous financial year. These factors collectively resulted in higher production volumes and contributed to the increase in revenue from operations during the year.

Other Income

Other Income increased from 16.60 lakhs in financial year ended March 31, 2025 to 17.05 lakhs in financial year ended March 31, 2026. Other Income for the financial year ended March 31, 2026 mainly consists of Interest Income, Foreign Fluctuations and Duty Drawback, 10.90 lakhs, 5.25 lakhs and 0.90 lakhs respectively whereas Other Income for the financial year ended March 31, 2025 mainly consists of Interest Income, Foreign Fluctuations, Duty Drawback, and Profit/Loss on Sales of Assets 10.49 lakhs, 1.35 lakhs, 0.26 lakhs and 4.50 lakhs respectively.

Expenses

Total expenses increased by 22.71% from 4,440.00 lakhs in financial year ended March 31, 2025 to 5,448.42 lakhs in financial year ended March 31, 2026. The increase in total expenses was primarily attributable to a increase in the cost of materials consumed, employee benefit expenses, finance costs, depreciation and amortisation Expense and other expenses. The increase was partially offset by favourable changes in inventories of finished goods, resulting in an overall increase in total expenses during the year.

Cost of materials consumed

Cost of materials consumed increased by 15.21%, from 3,346.76 lakhs in the financial year ended March 31, 2025 to 3,855.79 lakhs in the financial year ended March 31, 2026. However, as a percentage of total income, cost of materials consumed decreased to 59.14% in the financial year ended March 31, 2026 from 63.83% in the financial year ended March 31, 2025. This decline was primarily attributable to the IML segment wherein cost of materials consumed as percentage of segment revenue from operation decreased significantly from 65.79% in March 31, 2025 to 59.76% in March 31, 2026. Further, in the End Caps segment, cost of materials consumed in respect of the End Caps segment, as a percentage of segment revenue from operations marginally declined from 58.14% in the financial year ended March 31, 2025 to 58.03% in the financial year ended March 31, 2026. The reduction in material costs as a proportion of revenue reflects improved operational efficiencies and better cost optimisation across both business segments.

Changes in inventories

Changes in inventories was (151.70) lakhs in financial year ended March 31, 2026 as compared to (64.95) lakhs in financial year ended March 31, 2025.

Employee Benefits Expense

Employee Benefits Expense increased by 16.51% from 238.58 lakhs in financial year ended March 31, 2025 to 277.97 lakhs in financial year ended March 31, 2026. As a percentage to total income, employee benefits expenses decreased to 4.26% in financial year ended March 31, 2026, from 4.55% in financial year ended March 31, 2025.

Finance Costs

Finance costs increased by 29.79% from 142.09 lakhs in the financial year ended March 31, 2025 to 184.42 lakhs in the financial year ended March 31, 2025. As a percentage of total income, finance costs increased to 2.83% in the financial year ended March 31, 2026 from 2.71% in the financial year ended March 31, 2025, primarily due to loan processing fees and interest expense incurred in connection with the availing of a new cash credit facility.

Depreciation and Amortisation

Depreciation and amortisation expense increased from 93.83 lakhs in the financial year ended March 31, 2025 to 153.37 lakhs in the financial year ended March 31, 2026. As a percentage of total income, depreciation expense increased to 2.35% in the financial year ended March 31, 2026 from 1.79% in the financial year ended March 31, 2025. The increase was primarily attributable to additions to plant and machinery during the current and previous financial years. Further, certain assets commissioned during the previous financial year were depreciated only for a proportionate period in that year, whereas full-year depreciation was charged on such assets in the financial year ended March 31, 2026.

Other Expenses

Other expenses increased by 65.07% from 683.69 lakhs in the financial year ended March 31, 2025 to 1,128.57 lakhs in the financial year ended March 31, 2026. As a percentage of total income, other expenses accounted for 17.31% in the financial year ended March 31, 2026 as compared to 13.04% in the financial year ended March 31, 2025. The year-on-year increase was primarily attributable to higher manufacturing-related expenses comprising job work/labour and processing charges, electricity burning charges and freight, packaging & forwarding expenses and overdue payment charges.

Job work/labour and processing charges increased by 99.97% from 216.88 lakhs in the financial year ended March 31, 2025 to 433.71 lakhs in the financial year ended March 31, 2026 primarily attributable to the commencement of in-house manufacturing of End Caps throughout the financial year ended March 31, 2026, as against procurement through trading arrangements during a major part of the previous financial year, resulting in higher job work/labour and processing charges. Electricity burning charges increased by 12.19% from 224.99 lakhs in the financial year ended March 31, 2025 to 252.41 lakhs in the financial year ended March 31, 2026. Freight, packaging & forwarding expenses increased by 151.41% from 78.58 lakhs in the financial year ended March 31, 2025 to 197.57 lakhs in the financial year ended March 31, 2026 mainly due to commencement of in-house manufacturing of End Caps, resulting in higher freight, packaging and forwarding expenses associated with the movement and distribution. Overdue payment charges increased by 47.25% from 55.50 lakhs in the financial year ended March 31, 2025 to 81.73 lakhs in the financial year ended March 31, 2026.

Profit After Taxes (PAT)

The PAT margin increased to 12.33% in the financial year ended March 31, 2026 from 11.52% in the financial year ended March 31, 2025. The increase in profitability was primarily attributable to higher revenue from increased production capacity and utilisation, a reduction in material costs, and improved operational efficiency. The key factors contributing to the improvement in PAT margin are as follows:

1. Revenue Growth- Revenue from operations increased by 24.43% to 6,503.18 lakhs in the financial year ended March 31, 2026 from 5,226.28 lakhs in the financial year ended March 31, 2025. The increase was supported by an expansion in installed capacity from 8,000 kg per day to 8,400 kg per day and improvement in capacity utilisation from 84.73% to 90.00%. Further, the commencement of in-house manufacturing of End Caps, which were previously procured through trading arrangements during a major part of the previous financial year, contributed to higher production volumes and revenue growth.

2. Cost Optimization - Cost of materials consumed as a percentage of total income declined to 59.14% in the financial year ended March 31, 2026, from 63.83% in the financial year ended March 31, 2025. The reduction was primarily driven by the IML segment, where material costs as a percentage of segment revenue decreased from 65.79% to 59.76%, reflecting improved procurement efficiencies and raw material cost optimisation. Material costs in the End Caps segment also remained stable, decreasing marginally from 58.14% to 58.03% of segment revenue.

3. Operational Efficiencies - The commencement of in-house manufacturing of End Caps enabled the Company to exercise greater control over production processes and manufacturing costs while improving capacity utilisation. Together with the utilisation of additional installed capacity, this resulted in improved production efficiency and better absorption of fixed costs, supporting overall profitability.

4. Moderating Factors - The increase in profitability was partially offset by higher finance costs, depreciation and amortisation expenses, and other expenses. Finance costs increased due to loan processing charges and interest expenses relating to a new cash credit facility. Depreciation increased on account of additions to plant and machinery and full-year depreciation on assets that were depreciated only for a proportionate period in the previous financial year. Other expenses increased primarily due to higher job work, labour and processing charges and freight, packaging and forwarding expenses associated with the scale-up of operations and full-year in-house manufacturing of End Caps.

Collectively, initiatives such as capacity expansion, strategic procurement in the IML segment, and the commencement of in-house End Caps manufacturing contributed to higher efficiency and improved margins, resulting in a significant increase in profitability during the financial year ended March 31, 2026, notwithstanding the corresponding increase in finance costs, depreciation and amortisation expense and other expenses.

COMPARISON OF FINANCIAL YEAR ENDED 2025 TO FINANCIAL YEAR ENDED 2024

( in lakhs)

	2024-25	2023-24	% Change
Particulars	Amount	Amount
Revenue From Operations	5,226.28	4,799.32	8.90%
-In Mould Label containers	4,025.83	3,208.61	25.47%
-End Caps (Pipe protection Caps)	1,200.45	1,590.72	(24.53%)
Other Income	16.60	8.56	93.84%
Total Revenue	5,242.88	4,807.89	9.05%
Cost of Material Consumed	3,346.76	3,559.57	(5.98%)
Changes in inventories	(64.95)	(4.82)	1247.71%
Employee Benefits Expenses	238.58	160.49	48.65%
Finance Costs	142.09	95.23	49.21%
Depreciation	93.83	209.28	(55.17%)
Other Expenses	683.69	585.29	16.81%
Total Expenses	4,440.00	4,605.05	(3.58%)
Profit before tax	802.88	202.84	295.81%
Tax Expense
- Current Tax	170.42	39.48	331.67%
- Deferred Tax	28.24	8.25	242.21%
Profit (Loss) for the year	604.22	155.11	289.54%

Total Income

Our total income increased by 9.05% from 4,807.89 lakhs in the financial year ended March 31, 2024 to 5,242.88 lakhs in the financial year ended March 31, 2025, primarily due to higher revenue from operations.

Revenue from operations

Revenue from operations increased by 8.90% from 4,799.32 lakhs in the financial year ended March 31, 2024 to 5,226.28 lakhs in the financial year ended March 31, 2025. The increase was primarily due to 25.47% growth in revenue from the IML segment, partially offset by a 24.53% decline in revenue from the End Cap segment.

The growth in the IML segment was driven by an increase in total plant installed capacity from 6,700 kg per day in the financial year ended March 31, 2024 to 8,000 kg per day in the financial year ended March 31, 2025, coupled with higher capacity utilisation, which increased to 6,778 kg per day (84.73%) in the financial year ended March 31, 2025 from 5,468 kg per day (81.61%) in the financial year ended March 31, 2024. This resulted in higher production volumes and contributed to increased revenue from IML containers.

Revenues from the End Caps segment declined during the financial year ended March 31, 2025 primarily due to a change in the timing of order execution and dispatch schedules. Certain orders that were expected to be dispatched during the financial year were executed and dispatched in the subsequent period due to operational and logistical realignments, including revised delivery schedules. Consequently, revenue recognition for such orders was deferred to the next financial year.

Other Income

Other Income increased from 8.56 lakhs in financial year ended March 31, 2024 to 16.60 lakhs in financial year ended March 31, 2025. Other Income for the financial year ended March 31, 2025 mainly consists of Interest Income, Foreign Fluctuations, Duty Drawback, and Profit/Loss on Sales of Assets 10.49 lakhs, 1.35 lakhs, 0.26 lakhs and 4.50 lakhs respectively whereas Other Income for the financial year ended March 31, 2024 mainly consists of Interest Income and Duty Drawback amounting to 8.26 lakhs and 0.30 lakhs respectively.

Expenses

Total expenses decreased by 3.58% from 4,605.05 lakhs in financial year ended March 31, 2024 to 4,440.00 lakhs in financial year ended March 31, 2025. The decrease in total expenses was primarily attributable to a reduction in the cost of materials consumed, favourable changes in inventories of finished goods and a decrease in depreciation expense, which were partly offset by an increase in finance costs, employee benefit expenses and other expenses.

Cost of materials consumed

Cost of materials consumed decreased by 5.98%, from 3,559.57 lakhs in the financial year ended March 31, 2024 to 3,346.76 lakhs in the financial year ended March 31, 2025. As a percentage of total income, cost of materials consumed declined to 63.83% in the financial year ended March 31, 2025 from 74.04% in the financial year ended March 31, 2024. This reduction was primarily attributable to the commencement of in-house manufacturing of End Caps, which were earlier procured through trading arrangements. Consequently, cost of materials consumed in respect of the End Caps segment, as a percentage of revenue from operations of that segment, declined significantly from 95.44% in the financial year ended March 31, 2024 to 58.14% in the financial year ended March 31, 2025, reflecting improved cost efficiencies.

Changes in inventories

Changes in inventories was (64.95) lakhs in financial year ended March 31, 2025 as compared to (4.82) lakhs in financial year ended March 31, 2024.

Employee Benefits Expense

Employee Benefits Expense increased by 48.65% from 160.49 lakhs in financial year ended March 31, 2024 to 238.58 lakhs in financial year ended March 31, 2025. As a percentage to total income, employee benefits expenses increased to 4.55% in financial year ended March 31, 2025, from 3.34% in financial year ended March 31, 2024.

Finance Costs

Finance costs increased by 49.21% from 95.23 lakhs in the financial year ended March 31, 2024 to 142.09 lakhs in the financial year ended March 31, 2025. As a percentage of total income, finance costs increased to 2.71% in the financial year ended March 31, 2025 from 1.98% in the financial year ended March 31, 2024, primarily due to loan processing fees and bank charges incurred in connection with the availing of a new cash credit facility upon closure of the existing cash credit facility.

Depreciation

Depreciation expense decreased from 209.28 lakhs in the financial year ended March 31, 2024 to 93.83 lakhs in the financial year ended March 31, 2025. As a percentage of total income, depreciation expense decreased to 1.79% in the financial year ended March 31, 2025 from 4.35% in the financial year ended March 31, 2024, primarily due to change in the method of depreciation from the written down value method to the straight-line method.

Other Expenses

Other expenses increased by 16.81% from 585.29 lakhs in the financial year ended March 31, 2024 to 683.69 lakhs in the financial year ended March 31, 2025. As a percentage of total income, other expenses accounted for 13.04% in the financial year ended March 31, 2025 as compared to 12.17% in the financial year ended March 31, 2024. The year-on-year increase was primarily attributable to higher manufacturing-related expenses comprising job work/labour and processing charges, electricity burning charges and freight, packaging & forwarding expenses, overdue payment charges as well as an increase in administrative and other expenses, such as factory expenses, professional and consulting charges, rent, rates & taxes, travelling expenses and refreshment expenses.

Job work/labour and processing charges increased by 52.14% from 142.56 lakhs in the financial year ended March 31, 2024 to 216.88 lakhs in the financial year ended March 31, 2025. Electricity burning charges increased by 14.33% from 196.80 lakhs in the financial year ended March 31, 2024 to 224.99 lakhs in the financial year ended March 31, 2025. Freight, packaging & forwarding expenses increased by 11.94% from 70.20 lakhs in the financial year ended March 31, 2024 to 78.58 lakhs in the financial year ended March 31, 2025. Overdue payment charges increased by 145.12% from 22.64 lakhs in the financial year ended March 31, 2024 to 55.50 lakhs in the financial year ended March 31, 2025. Factory expenses increased by 48.52% from 10.29 lakhs in the financial year ended March 31, 2024 to 15.28 lakhs in the financial year ended March 31, 2025. Professional and consulting charges increased by 59.81% from 9.10 lakhs in the financial year ended March 31, 2024 to 14.54 lakhs in the financial year ended March 31, 2025. Rent, rates & taxes increased by 62.28% from 11.40 lakhs in the financial year ended March 31, 2024 to 18.50 lakhs in the financial year ended March 31, 2025. Travelling expenses increased by 317.22% from 2.14 lakhs in the financial year ended March 31, 2024 to 8.93 lakhs in the financial year ended March 31, 2025. Refreshment expenses increased by 850.42% from 0.57 lakhs in the financial year ended March 31, 2024 to 5.40 lakhs in the financial year ended March 31, 2025.

Profit After Taxes (PAT)

The PAT margin increased to 11.52% in the financial year ended March 31, 2025 from 3.23% in the financial year ended March 31, 2024. The increase in profitability was primarily attributable to higher revenue from increased production capacity and utilisation, a reduction in material costs, lower depreciation expense and improved operational efficiency. The key factors contributing to the improvement in PAT margin are as follows:

1. Revenue Growth- During the financial year ended March 31, 2025, the Companys total installed plant capacity increased from 6,700 kg per day to 8,000 kg per day. Further, capacity utilisation in the IML segment increased to 6,778 kg per day (i.e. 84.73% utilisation) in the financial year ended March 31, 2025, as compared to 5,468 kg per day (i.e. 81.61% utilisation) in the financial year ended March 31, 2024. This resulted in higher production volumes and an increase in revenue from operations.

2. Cost Optimization - The Company commenced in-house manufacturing of End Caps, which were earlier sourced through trading. As a result, the cost of materials consumed for the End Caps segment, as a percentage of revenue from operations, decreased from 95.44% in the financial year ended March 31, 2024 to 58.14% in the financial year ended March 31, 2025.

3. Change in Method of Depreciation With effect from the financial year ended March 31, 2025, the Company changed the method of depreciation from the written down value method to the straight-line method, which resulted in a reduction in depreciation expense and contributed to an increase in PAT margin by approximately 2.54%.

4. Operational Improvements - During the financial year ended March 31, 2025, the Company acquired additional machinery and moulds, including equipment for key production processes. The new machinery and moulds facilitated faster changeovers between production runs and reduced production downtime. This enabled the Company to complete orders more efficiently, improve consistency of output, and increase production throughput. As a result, utilisation of installed manufacturing capacity improved, production schedules were better aligned with customer demand, and overall manufacturing costs were optimised, supporting enhanced profitability.

Collectively, initiatives such as capacity expansion, internalisation of end cap manufacturing and operational improvements contributed to higher efficiency, lower costs and improved margins, resulting in a significant increase in profitability during the financial year ended March 31, 2025.

CASH FLOWS

The following table sets forth our cash flows for the year indicated:

( in lakhs)

Particulars	March 31, 2026	March 31, 2025	March 31, 2024
Net cash flow from/(used in) operating activities	673.92	434.71	65.71
Net cash flow from/(used in) investing activities	(1,405.04)	(1,027.60)	(402.44)
Net cash flow from/(used in) financing activities	838.76	587.63	428.59
Net increase/(decrease) in cash and cash equivalents	107.64	(5.26)	91.86
Opening Balance of Cash and Cash Equivalents (Restated)
Cash and cash equivalents	193.28	198.54	106.68
Closing Balance of Cash and Cash Equivalents	300.92	193.28	198.54

Operating Activities

Financial Year 2025-26

Our net cash generated in operating activities was 673.92 lakhs for the Financial Year 2025-26. Our operating profit before changes in working capital items was 1,398.70 lakhs which was adjusted against Change in Long Term Loans and Advances, Non-Current Assets, Inventories, Trade Receivables (Current), Short Term Loans and Advances, other current assets, Trade Payables (Current), Short Term Provisions, Other Non-Current Liabilities & Long Term Provisions and Other Current Liabilities by (89.65) lakhs, (16.91) lakhs, (207.66) lakhs, (261.89) lakhs, 67.05 lakhs, 15.37 lakhs, (98.66) lakhs, 26.58 lakhs, (29.30) lakhs and (15.71) lakhs respectively and Income Tax Adjustments of (113.99) lakhs.

Financial Year 2024-25

Our net cash generated in operating activities was 434.71 lakhs for the Financial Year 2024-25. Our operating profit before changes in working capital items was 1034.13 lakhs which was adjusted against Change in Long Term Loans and Advances, Non-Current Assets, Inventories, Trade Receivables (Current), Short Term Loans and Advances, other current assets, Trade Payables (Current), Short Term Provisions, Other Non-Current Liabilities & Long Term Provisions and Other Current Liabilities by (30.79) lakhs, (43.08) lakhs, (395.15) lakhs, 82.86 lakhs, (70.76) lakhs, (28.75) lakhs, 142.30 lakhs, (35.54) lakhs, (123.48) lakhs and (6.77) lakhs respectively and Income Tax Adjustments of (90.28) lakhs.

Financial Year 2023-24

Our net cash generated in operating activities was 65.71 lakhs for the financial year ended March 31, 2024. Our operating profit before changes in working capital items was 500.87 lakhs which was adjusted against Change in Long Term Loans and Advances, Non-Current Assets, Inventories, Trade Receivables (Current), Short Term Loans and Advances, other current assets, Trade Payables (Current), Short Term Provisions, Other Non-Current Liabilities and Other Current Liabilities by (6.30) lakhs, 9.67 lakhs, (155.42) lakhs, (23.98) lakhs, 15.25 lakhs, 8.57 lakhs, (230.88) lakhs, 41.58 lakhs, (83.73) lakhs and 6.52 lakhs respectively and Income Tax Adjustments of (16.44) lakhs.

Investing Activities

Financial Year 2025-26

Net cash used in investing activities for the financial year ended March 31, 2026 was 1,405.04 lakhs, primarily due to purchase of property, plant and equipment & intangible assets , including capital work-in-progress, amounting to 1,415.95 lakhs, partially offset by interest income of 10.90 lakhs.

Financial Year 2024-25

Net cash used in investing activities for the financial year ended March 31, 2025 was 1,027.60 lakhs, primarily due to purchase of property, plant and equipment, including capital work-in-progress, amounting to 1,075.66 lakhs, partially offset by interest income of 10.49 lakhs and proceeds from sale of fixed assets of 37.56 lakhs.

Financial Year 2023-24

Net cash used in investing activities for the financial year ended March 31, 2024 was 402.44 lakhs, primarily due to purchase of property, plant and equipment, including capital work-in-progress, amounting to 410.70 lakhs, partially offset by interest income of 8.26 lakhs.

Financing Activities

Financial Year 2025-26

Net cash generated in financing activities for the financial year ended March 31, 2026 was 838.76 lakhs, primarily due to increase in long-term borrowings of 1,190.71 lakhs, short-term borrowings of 245.74 lakhs, and equity capital and securities premium of 254.40 lakhs, partially offset by repayment of long-term borrowings amounting to 678.52 lakhs and finance costs of 173.57 lakhs.

Financial Year 2024-25

Net cash generated in financing activities for the financial year ended March 31, 2025 was 587.63 lakhs, primarily due to increase in long-term borrowings of 1,437.44 lakhs, short-term borrowings of 329.72 lakhs, and equity capital and securities premium of 1,002.00 lakhs, partially offset by repayment of long-term borrowings amounting to 2,039.44 lakhs and finance costs of 142.09 lakhs.

Financial Year 2023-24

Net cash generated in financing activities for the financial year ended March 31, 2024 was 428.59 lakhs, primarily due to increase in long-term borrowings of 926.24 lakhs and short-term borrowings of 183.42 lakhs, partially offset by an repayment of long-term borrowings amounting to 585.85 lakhs and finance costs of 95.23 lakhs.

Contingent Liabilities and Capital Commitments

The following table sets forth our contingent liabilities and capital commitments as at March 31, 2026, March 31, 2025 and March 31, 2024 as per restated financial information.

( in lakhs)

Particulars	March 31, 2026	March 31, 2025	March 31, 2024
(a) Contingent Liability	2.50	2.07	1.89
(b) Capital Commitments	-	-	-
Total	2.50	2.07	1.89

Quantitative and Qualitative Disclosures about Market Risk

Market risk is the risk of loss related to adverse changes in market prices, including interest rates. In the normal course of business, we are exposed to certain market risks including interest rate risk, liquidity risk and credit risk. We aim to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on our financial performance.

Interest rate risk

Interest rate risk arises from changes in prevailing market interest rates, which may affect the fair value of fixed-rate financial instruments and the cash flows of variable-rate financial instruments. The Companys operations are funded, to a certain extent, through interest-bearing borrowings and, accordingly, the Company is exposed to interest rate risk. Fluctuations in market interest rates may impact the finance costs of borrowings that carry variable rates of interest. The Company monitors its interest rate exposure on an ongoing basis and seeks to manage such risk by maintaining an appropriate mix of borrowings and by negotiating competitive interest rates. However, there can be no assurance that future movements in interest rates will not adversely affect the Companys financial condition or results of operations.

Liquidity risk

Liquidity risk is the risk that our Company may encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. Liquidity risk is managed by us through effective fund management of the Companys short, medium and long-term funding and liquidity management requirements. Our Company employee prudent liquidity risk management practices by maintaining adequate reserves, banking facilities and other committed borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

Credit Risk

Credit risk is the risk of financial loss to our Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. It primarily arises from our Companys trade and other receivables, cash and cash equivalents and other bank balances. To manage this, we periodically assesses financial creditworthiness of customers, taking into account the financial condition, current economic trends and analysis of historical bad debts and ageing of accounts receivable. The maximum exposure to credit risk in case of all the financial instruments covered below is restricted to their respective carrying amount. However, there can be no assurance that our counterparties may not default on their obligations, which may adversely affect our business and financial condition.

Trade and other receivables from customers

Credit risk in respect of trade and other receivables is managed through credit approvals, establishing credit limits and monitoring the creditworthiness of customers to whom the Company grants credit terms in the normal course of business. Our Company measures the expected credit loss of trade receivables based on historical trend, industry practices and the business environment in which the entity operates.

Cash and cash equivalents

The cash and cash equivalents are held with bank that have good credit ratings and financial institution counterparties with good market standing.

OTHER MATTERS

Details of default, if any, including therein the amount involved, duration of default and present status, in repayment of statutory dues or repayment of debentures or repayment of deposits or repayment of loans from any bank or financial institution

Except as disclosed in section titled "Restated Financial Statements" beginning on page 238 of this Red Herring Prospectus, there have been no defaults in payment of statutory dues or repayment of debentures and interest thereon or repayment of deposits and interest thereon or repayment of loans from any bank or financial institution and interest thereon by the Company.

Material Frauds

There are no material frauds, as reported by our statutory auditor committed against our Company, in the last three financials year.

Disclosure under Item (II)(C)(iv) of Part A of Schedule VI to the SEBI Regulations

A. Unusual or infrequent events or transactions including unusual trends on account of business activity, unusual items of income, change of accounting policies and discretionary reduction of expenses etc.

Except as described elsewhere in this Red Herring Prospectus, there have been no events or transactions to our knowledge which may be described as "unusual" or "infrequent"

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

Government policies governing the sector in which we operate as well as the overall growth of the Indian economy have a significant bearing on our operations. Major changes in these factors can significantly impact income from continuing operations.

There are no significant economic changes that materially affected our Companys operations or are likely to affect income except as mentioned in the section titled ‘Risk Factors beginning on page 22 of this Red Herring Prospectus.

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

Other than as described in the section titled ‘Risk Factors and ‘Managements Discussion and Analysis of Financial Conditions and Results of Operations beginning on page 22 and 245 respectively of this Red Herring Prospectus, to our knowledge there are no known trends or uncertainties that have or are expected to have a material adverse impact on our income from continuing operations.

D. Expected future changes in relationship between costs and revenues, in case of events such as future increase in material costs or prices that will cause a material change are known

Other than as described in the section titled ‘Risk Factors and ‘Managements Discussion and Analysis of Financial Conditions and Results of Operations beginning on page 22 and 245 respectively of this Red Herring Prospectus, there are no known factors to our knowledge which would have a material adverse impact on the relationship between costs and income of our Company. Our Companys future costs and revenues will be determined by demand/supply situation, government policies and other economic factors.

E. The extent to which material increases in net sales or revenue are due to increased sales volume, introduction of new products or services or increased sales prices

Changes in revenue in the last three financial years are as explained in the part "Comparison of Financial Year ended 2026 to Financial year ended 2025 and comparison of Financial year ended 2025 to Financial year ended 2024" above.

F. Total turnover of each major industry segment in which the issuer operated

Our Company is engaged into IML and End Caps. Relevant industry data, as available, has been included in the sections titled "Industry Overview" beginning on page 138 of this Red Herring Prospectus.

G. Status of any publicly announced new products or business segment

Except as disclosed in this Red Herring Prospectus, we have not announced and do not expect to announce in the near future any new products/services or business segment.

H. The extent to which business is seasonal

Our Company is a specialized rigid plastic packaging manufacturer engaged in producing a wide range of high-quality containers, including In-Mold Labelled (IML) containers, tamper-evident packaging, food-grade tubs, lids, and custom-designed solutions for the dairy, ice-cream, confectionery, FMCG, and industrial sectors. In addition, we also manufacture pipe protection caps used in various industrial applications.

While certain products in our portfolio experience seasonal variations in demand such as higher consumption of ice-cream and dairy products during the summer months, and increased demand for sweets, snacks, dry fruits, and gift packaging during the Diwali festive season, our overall operations are not significantly seasonal. The Company maintains consistent production capabilities throughout the year to meet customer requirements, ensuring stable operational performance beyond these seasonal peaks.

I. Any significant dependence on a single or few suppliers or customers

Revenues from any particular customer may vary between financial reporting periods depending on the nature and term of ongoing contracts with such customer. The table below sets forth our revenue from our top customers of our Company as a percentage of our revenue from operations for the financial year ended March 31, 2026, March 31, 2025 and March 31, 2024 are as below:

	FY 2025-26	FY 2024-25	FY 2023-24
Particulars	Revenue	% of Revenue from Operations	Revenue	% of Revenue from Operations	Revenue	% of Revenue from Operations
Top 10 Customers	3,334.18	51.27%	2,423.37	46.37%	2,387.93	49.76%
Top 5 Customers	2,486.94	38.24%	1,778.86	34.04%	1,967.91	41.00%
Top 3 Customers	1,693.31	26.04%	1,118.43	21.40%	1,576.32	32.84%
Top 1 Customer	654.87	10.07%	530.77	10.16%	866.35	18.05%

As certified by Peer Reviewed Auditor of our Company i.e., M/s. S. K. Bhavsar & Co., Chartered Accountants by way of their certificate dated June 29, 2026.

The table set forth our supplier dependence of top supplier of our Company as a percentage of Total Supplies for the financial year ended March 31, 2026, March 31, 2025 and March 31, 2024 are as below:

( in lakhs)

	FY 2025-26	FY 2024-25	FY 2023-24
Particulars	Purchases	% of Total Purchases	Purchases	% of Total Purchases	Purchases	% of Total Purchases
Top 10 Suppliers	3,454.57	88.31%	3,308.60	89.98%	3,519.53	94.86%
Top 5 Suppliers	2,636.55	67.40%	2,717.13	73.90%	3,165.15	85.31%
Top 3 Suppliers	2,033.15	51.98%	1,996.51	54.30%	2,602.80	70.15%
Top 1 Supplier	762.76	19.50%	933.97	25.40%	1,591.58	42.90%

As certified by Peer Reviewed Auditor of our Company i.e., M/s. S. K. Bhavsar & Co., Chartered Accountants by way of their certificate dated June 29, 2026.

J. Competitive conditions

We expect competition in our business to intensify from existing and potential competitors. We face competition from both organized and unorganized players in the market. We believe that our expertise, quality offerings and distinguished experience will be key to overcoming competition posed by such players. We believe that the principal factors affecting competition in our business include client relationships, reputation, and the quality and pricing of our products.

K. Related Party Transactions

We have entered into transactions with certain related parties, including directors, chief financial officer, company secretary and group entities. In particular, we have engaged in various transactions with these parties in relation to, amongst others, remuneration, commission, rent expense, loans, other advances, Sale & purchase of product, etc.

For further information relating to our related party transactions see ‘Financial Information of the Company on page 238 of this Red Herring Prospectus.