Dollar Industries Ltd Management Discussions

Global Economic Overview

The global economy demonstrated resilience througRs. 2025 despite a complex macroeconomic environment marked by geopolitical tensions, trade frictions and policy uncertainties. Global growth remained stable at approximately 3.3%¹, supported by front-loading of trade, supply chain realignments, relatively benign financial conditions and sustained investments in technology, particularly artificial intelligence-led infrastructure. However, the escalation of conflict in the Middle East has emerged as a significant downside risk, with disruptions to energy supplies and shipping routes expected to weigh on economic activity. Consequently, global growth is projected to moderate to 3.1% in 2026 and 3.2% in 2027², with emerging and developing economies likely to experience a relatively sharper impact.

Inflationary pressures eased across several economies during 2025 as supply chain disruptions moderated and commodity prices stabilised, with global headline inflation estimated at approximately 4.1%³. This enabled certain advanced economies to gradually shift towards a less restrictive monetary policy stance following earlier tightening cycles. However, rising energy prices and heightened uncertainty arising from the Middle East conflict have renewed inflationary concerns, with global headline inflation projected to increase to around 4.4%⁴ in 2026 before moderating gradually thereafter.

The global trade environment continued to evolve amid rising protectionist measures and ongoing tariff negotiations. While overall trade volumes remained robust, growth moderated as trade-restrictive measures increased. Multinational companies accelerated supply chain diversification strategies to mitigate

concentration risks, strengthening trade linkages across emerging markets and increasing South-South trade.

At the same time, disruptions to energy flows led to elevated crude oil, natural gas and fertiliser prices, increasing input costs across industries and contributing to renewed inflationary pressures globally. Uncertainty around the duration and intensity of the conflict has also impacted global trade flows, weakened investor sentiment and increased volatility across financial markets. The International Monetary Fund has indicated that the economic impact of the conflict is already being reflected in global growth and inflation dynamics.

Outlook

The Organisation for Economic Co-operation and Development (‘OECD) forecasts a Global GDP deceleration from 3.2% in 2025 to 2.9% in 2026 and finally stabilising at 3.0% in 2027⁵. Persistent geopolitical tensions - particularly in energy-sensitive regions, commodity price volatility and policy uncertainties across major economies could influence inflation trajectories and financial conditions. Prolonged disruptions in key energy corridors such as the Strait of Hormuz may exert sustained pressure on inflation and global demand, while also complicating central bank policy responses.

At the same time, structural shifts in global trade, increasing industrial policy interventions and ongoing supply chain diversification are reshaping global production networks. While these transitions may introduce near-term uncertainties, they also present opportunities for emerging economies to strengthen their role in global manufacturing and services trade.

Indian Economic Environment

Set against a challenging global backdrop, the Indian economy continued to exhibit strong resilience in FY 2025-26, reaffirming its position among the fastest-growing major economies. Real GDP growth was estimated at approximately 7.6%⁶, supported by robust domestic demand, sustained public investment and easing inflation. Continued formalisation of the economy and strengthened financial sector fundamentals further supported macroeconomic stability.

Consumption remained the primary growth driver during the year. Improved purchasing power, aided by tax relief measures introduced in the Union Budget 2025-26 and ongoing tax reforms, supported household spending. Rural demand benefitted from favourable monsoon conditions and stable agricultural output, while urban consumption was supported by improving employment conditions and moderating inflation.

From a sectoral perspective, agriculture continued to provide stability to the economy, with Gross Value Added (GVA) growing by around 3.1%, supported by favourable weather patterns and improved crop yields. Industrial activity also maintained healthy momentum, with the sector expected to grow by approximately 6.2% in FY 2025-26, compared to 5.9% in the previous year. Manufacturing remained a key growth driver, supported by Production Linked Incentive (PLI) schemes, which attracted investments exceeding RS. 2.0 lakh crore and generated incremental sales of over RS. 18.7 lakh crore as of September 20 25⁷.

The services sector continued to anchor economic activity, contributing 56.4% to Gross Value Added and recording growth of approximately 9.1% in FY 2025-26, compared to 7.2% in the previous year. Strong performance across technology, financial and professional services, along with record services exports, reinforced Indias position as a global services hub⁸.

Indias macroeconomic fundamentals strengthened further during the year, with the fiscal deficit declining to around 4.4% of GDP in FY 2025-26 from 4.8%⁹ in FY 2024-25. Improved bank balance sheets, lower non-performing assets and foreign exchange reserves of approximately US$730 billion¹⁰ strengthened resilience against external shocks. Rising retail investor participation, increasing mutual fund penetration and wider adoption of digital investment platforms also contributed to deeper capital market participation and improved financial inclusion.

Outlook

Indias economic outlook remains favourable despite increasing global uncertainties and geopolitical disruptions. India continues to strengthen its global economic engagement through trade agreements with key partners such as the UK and the European Free Trade Association (EFTA), aimed at improving market access across multiple services sectors and facilitating greater mobility for professionals. Supported by resilient domestic demand, sustained infrastructure spending and continued policy support, the Indian economy is projected to grow at approximately 6.6% in FY 202627¹¹, maintaining its position as the worlds fastest-growing major economy.

Growth is expected to remain broad-based, driven by continued expansion across manufacturing, services and infrastructure sectors. Government initiatives focused on improving manufacturing competitiveness, strengthening logistics infrastructure and encouraging private investment are likely to further support economic activity. In addition, the MSME sector, comprising over 7.9 crore enterprises and contributing nearly 31% to GDP¹², is expected to continue playing a critical role in employment generation and economic growth. Indias expanding digital ecosystem and growing capabilities in technology and AI are also expected to enhance productivity, support formalisation and strengthen the countrys long-term growth potential.

Indian Textile and Apparel Industry

The Indian textile and apparel industry remains a key pillar of the countrys economic and industrial landscape, contributing significantly to employment, exports and economic output. Employing over 45 million people and producing nearly 22 billion garments annually, the sector is among the countrys largest employment generators. Backed by a strong raw material base, skilled workforce and supportive policy framework, India continues to strengthen its position in the global textile value chain.

India is the second-largest producer of textiles and garments globally and the sixth-largest exporter, accounting for nearly 4.6% of global trade across apparel, home textiles and technical textiles. Competitive manufacturing costs, diversified product offerings and increasing integration into global supply chains continue to support the countrys export competitiveness.

The domestic textile and apparel market is estimated at approximately US$ 157 billion in FY 2025-26 and is expected to grow at a CAGR of around 7%, reaching nearly US$ 250 billion by 2030. Growth is being driven by rising disposable incomes, increasing urbanisation, growing e-commerce penetration and evolving consumer preferences towards branded and value-added products. Indias per capita income, projected to increase from approximately US$ 2,675 in 2025 to US$ 4,000 by 2030, is also expected to support consumption growth.

On the exports front, the industry continued to demonstrate steady momentum, with textile exports valued at approximately US$ 37.75 billion, accounting for 8.63% of Indias total exports. Growth has been supported by improving demand across key markets,

inventory restocking by global retailers and the ongoing China Plus One strategy, which is encouraging diversification of sourcing towards countries such as India.

Globally, the textile and apparel industry continues to offer significant opportunities. The global apparel market, valued at approximately US$ 1.9 trillion in 2025, is expected to grow at a CAGR of 4.1%, while global textile and apparel trade is projected to reach US$ 1.2 trillion by 2030. In addition, global fibre demand is expected to increase to 149 million tonnes by 2030, creating further opportunities for export-oriented economies such as India.

The sector is also benefiting from continued policy support and targeted government initiatives aimed at improving competitiveness and modernisation. Budgetary allocation for the textile sector increased to approximately RS. 5,272 crore in FY 2025-26. Initiatives such as the Production Linked Incentive (PLI) scheme, the Amended Technology Upgradation Fund Scheme (ATUFS) and the Tex-RAMPS scheme are expected to support investments, technological advancement and innovation across the industry. The India-UK Free Trade Agreement (FTA), signed in July 2025, is also expected to improve export competitiveness through duty-free access to 99% of Indias textile exports¹³.

Despite these positives, the industry remains exposed to challenges arising from raw material price volatility, evolving global trade policies and increasing competition from other exporting nations. In addition, tariff-related developments in the United States may create both opportunities and pricing pressures for Indian exporters¹⁴. Overall, the industry is expected to witness gradual long-term growth, supported by domestic demand, favourable demographics and continued policy support.

Indian Innerwear Market

The Indian innerwear market has undergone a significant transformation in recent years, evolving from a largely commoditised segment into a dynamic, brand-driven category. The market was valued at approximately US$ 10.9 billion in 2025 and is projected to reach US$ 19.8 billion by 2034, growing at a CAGR of ~6.5% during 2026-2034. This growth is underpinned by rising disposable incomes, increasing urbanisation and a structural shift towards branded and premium products.

Consumer preferences within the category are evolving rapidly, with innerwear increasingly being viewed as a lifestyle and fashion product rather than a necessity. This shift is particularly visible among younger consumers and in urban and semi-urban markets, where demand for better design, fit and quality is accelerating the transition towards organised and branded players.

The expansion of e-commerce and organised retail has played a critical role in reshaping the industry landscape. Online platforms have enhanced accessibility by offering privacy, convenience and a wider assortment of products, enabling consumers across Tier II and Tier III cities to access premium and global brands. At the same time, the growth of exclusive brand outlets and modern retail formats has improved the in-store experience through better fitting services and personalised offerings.

Innovation and product differentiation are also emerging as key growth enablers. Increasing consumer preference for comfort and functionality is driving demand for advanced fabrics such as moisture-wicking, anti-bacterial and stretchable materials. Categories such as seamless innerwear, shapewear and athleisure are witnessing strong traction, supported by evolving lifestyle trends. Additionally, the growing adoption of sustainable materials and inclusive designs is further shaping the future of the industry.

Overall, the Indian innerwear industry is transitioning towards a more organised, innovation-led and premiumised structure, supported by favourable demographics, expanding distribution channels and increasing brand consciousness.¹⁵

Key Growth Drivers

- Rising Disposable Incomes and Urbanisation

Increasing income levels and urban expansion are driving higher discretionary spending, particularly on branded and premium innerwear.

- Shift towards Branded and Organised Segment

Consumers are increasingly prioritising quality, comfort and design, accelerating the transition from unorganised to branded players.

- Expansion of E-commerce and Organised Retail

Digital platforms and modern retail formats are enhancing accessibility, convenience and overall consumer experience across markets.

- Evolving Consumer Preferences and Fashion Orientation

Innerwear is increasingly seen as a lifestyle category, with demand driven by aesthetics, fit and product variety.

- Product Innovation and Fabric Advancements

Demand for performance-driven innerwear featuring advanced fabrics and functional attributes is driving innovation across segments.

- Growing Focus on Comfort and Functionality

Preference for ergonomic designs, breathable fabrics and seamless construction is increasing adoption of value- added products.

- Sustainability and Eco-conscious Consumption

Rising awareness around sustainability is encouraging demand for eco-friendly materials and responsible manufacturing practices.

Athleisure Segment in India

The athleisure segment in India has emerged as one of the fastest- growing categories within the broader apparel and innerwear market, reflecting changing consumer lifestyles and dressing preferences. Positioned at the intersection of performance wear and casual fashion, athleisure is increasingly gaining mainstream acceptance across urban and semi-urban markets.

The Indian athleisure market, currently valued at approximately US$ 13.88 billion, is projected to grow at a CAGR of around 5.28%, reaching over US$ 22.36 billion by 2034¹⁶. Growth is being driven by increasing health and fitness awareness, a younger consumer base, hybrid work culture and rising preference for clothing that combines comfort, functionality and style across multiple use cases.

Key Product Categories in Athleisure

- Moisture-wicking T-shirts (round neck, V-neck, sleeveless)

- Yoga pants and leggings

- Track pants and joggers

- Active polos with UV protection

- Sports bras and bralettes

- Zip-up hoodies and performance sweatshirts

- Cycling shorts and gym shorts

- Compression wear

- Performance tanks

The category is also witnessing strong momentum in terms of innovation and premiumisation. Consumers are increasingly willing to pay for value-added features such as moisture-wicking fabrics, anti-odour technology, UV protection, 4-way stretch and seamless construction. The segment is transitioning from unorganised and basic sportswear to a more organised and brand-led market, driven by established players as well as digital-first brands.

As a result, pricing in the segment spans across economy (RS. 300-RS. 800), mid-range (RS. 800-RS. 1,500) and premium (RS. 1,500- RS. 4,000+) categories, catering to diverse consumer segments.

Key Growth Drivers

- Rising Health and Fitness Awareness

Increasing focus on wellness, fitness routines and active lifestyles is driving demand for performance-oriented apparel.

- Shift towards Comfort-led Dressing

The adoption of hybrid work models and casualisation of workplaces is accelerating demand for versatile, comfortable clothing.

- Younger Demographics and Lifestyle Changes

A large, young population with evolving fashion preferences is contributing to higher adoption of athleisure across occasions.

- Product Innovation and Fabric Technology

Advancements in fabric technologies such as moisture-wicking, anti-odour and stretchable materials are enhancing product appeal and functionality.

- Premiumisation and Brand-led Growth

Consumers are increasingly willing to pay for quality, performance and brand value, driving growth in mid and premium segments.

- Gender-neutral and Multi-use Appeal

The categorys adaptability across genders, age groups and use cases is expanding its consumer base and driving sustained growth.

Company Overview

Founded in 1972 as Bhawani Textiles, Dollar Industries Limited has evolved into one of Indias leading branded innerwear and apparel companies, with a strong presence across mens, womens and kids categories. Over the decades, the Company has transitioned from a hosiery-focused player to a diversified apparel brand with a growing footprint across innerwear, outerwear and athleisure segments.

Dollar has built a strong pan-India distribution network comprising over 1,500 dealers and a retail reach of more than 1.45 lakh outlets, supported by a growing presence in modern trade, e-commerce and quick commerce channels. The Company is also strengthening its distribution ecosystem through initiatives such as Project Lakshya, aimed at creating a demand-driven and data- enabled distribution model.

The Company follows a multi-brand strategy catering to diverse consumer segments across price points. Its portfolio includes established brands such as Dollar Bigboss, Dollar Lehar, Dollar Missy, Dollar Ultra, Dollar Athleisure, Dollar Rainguard and Force NXT, with increasing focus on premiumisation and adjacent categories such as athleisure and womens innerwear.

During the year, Dollar adopted a calibrated approach to growth, prioritising cost discipline, operating efficiency and profitability amid a competitive and price-sensitive market environment. This approach enabled the Company to protect margins and strengthen its operating base, positioning it to benefit from improved operating leverage as demand conditions normalise.

A key strategic development during the year was the proposed consolidation of promoter group entities into Dollar Industries

Limited. The initiative is expected to centralise brand ownership, integrate manufacturing and real estate assets, reduce related- party transactions and enhance governance standards, supporting long-term operational efficiency and scalability¹⁷.

On the brand front, the Company continued to strengthen consumer engagement through focused marketing initiatives and celebrity endorsements. Campaigns featuring Saif Ali Khan for Dollar Lehar and Yami Gautam for Dollar Missy reinforced the Companys positioning around comfort, versatility and aspirational appeal across consumer segments^{18, 19}.

Looking ahead, Dollar remains focused on strengthening its market position through premiumisation, category diversification and deeper distribution penetration. With a strong brand legacy, integrated operations and a disciplined operating approach, the Company is well positioned to drive long-term value creation.

Analysis of Statement of Profit and Loss

- Revenue from Operations: Revenue from operations stood at RS. 1,880.96 crore in FY 2025-26, compared to RS. 1,710.46 crore in FY 2024-25, recording a growth of 10%. In FY 202526, revenues from the domestic market stood at RS. 1,818.76 crore, while exports contributed RS. 62.20 crore.

- Operating Profit (EBITDA): Operating profit (EBITDA) stood at RS. 199.69 crore in FY 2025-26, as against RS. 182.67 crore in FY 2024-25, growing by 9.32%.

- Depreciation: Depreciation for FY 2025-26 stood at RS. 39.66 crore, compared to RS. 37.56 crore in FY 2024-25, increasing by 5.61%.

- Finance Costs: Finance costs stood at RS. 24.44 crore in FY 2025-26, as against RS. 28.15 crore in FY 2024-25.

- Other Income: Other income stood at RS. 4.21 crore in FY 202526, compared to RS. 5.35 crore in FY 2024-25.

- Net Profit: Net profit for the year under review stood at RS. 107.43 crore compared to RS. 91.04 crore in FY 2024-25.

Analysis of Balance Sheet

- Net Worth: The Companys net worth stood at RS. 954.21 crore as on 31^st March, 2026, as against RS. 859.84 crore as on 31^st March, 2025, reflecting a continued strengthening of the capital base. The net worth includes paid-up equity share capital of RS. 11.34 crore (RS. 11.34 crore in FY 2024-25, comprising 5.67 crore equity shares of RS. 2 each, fully paid-up), while other equity stood at RS. 937.32 crore.

- Loan Profile: Total borrowings of the Company stood at RS. 276.95 crore as of 31^st March, 2026, compared to RS. 329.68 crore in the previous year. Of this, RS. 243.11 crore is due within the current financial year. Working capital borrowings remained at RS. 243.11 crore outstanding in cash credit accounts.

- Total Assets: The Companys total asset base expanded to RS. 1,544.61 crore in FY 2025-26 from RS. 1,476.09 crore in FY 2024-25, representing a growth of 4.64%.

- Inventories: Inventory levels stood at RS. 506.69 crore in FY 2025-26, compared to RS. 544.32 crore in FY 2024-25, marking an decrease of 6.91%. The inventory mix of the year comprised raw materials of RS. 86.77 crore, finished goods worth RS. 274.58 crore, and work-in-progress of RS. 145.33 crore.

- Total Loans and Deposits: Loans and deposits aggregated to RS. 4.67 crore in FY 2025-26, as against RS. 3.43 crore in FY 2024-25.

- Current Liabilities: Current liabilities stood at RS. 536.37 crore as on 31^st March, 2026, compared to RS. 564.69 crore in the previous year. This included short-term borrowings of RS. 243.11 crore (RS. 298.85 crore in FY 2024-25) and trade payables of RS. 228.19 crore.

Key Financial Ratios

Particulars	FY26	FY25	% Change
RoE	11.8%	11.1%	6.4%
RoCE	13.4%	13%	2.9%
Net Debt/Equity	0.29	0.38	-23.7%
Net Debt/Op EBITDA	1.39	1.80	-22.8%

Category-wise Revenue Contribution

Dollar Man	36%
Dollar Woman	8%
Dollar Junior	0.1%
Dollar Thermal	6%
Dollar Always	43%
Force NXT	5%
Dollar Protect	2%

Geography-wise Revenue Contribution

East	24%
North	47%
West	21%
South	8%

SCOT Analysis

Strengths

- Established Brand Equity and Legacy

Over five decades of presence has enabled Dollar to build strong brand recall and trust in the Indian innerwear market, particularly in the value and mid-premium segments.

- Extensive Distribution Network and Deep Market Reach

A wide pan-India distribution footprint, supported by over 1,500 dealers and strong retail penetration, enables the Company to effectively cater to both urban and rural markets.

- Integrated Manufacturing and Cost Efficiencies

Backward integration across key manufacturing processes provides better control over quality, cost optimisation and operational flexibility.

- Diverse Product Portfolio across Segments

Presence across mens, womens and kids innerwear, along with expansion into athleisure and adjacent categories, enables the Company to address a wide consumer base.

- Strong Value Positioning and Affordability

The Companys focus on offering quality products at competitive price points continues to drive volumes in a price- sensitive market.

Challenges

- Impact of Geopolitical Tensions on Exports and Input Costs

Ongoing geopolitical conflicts have led to volatility in energy prices and disruptions in key shipping routes. This has the potential to increase logistics costs, affect export demand in certain regions and create pricing pressures due to elevated input and freight costs.

- High Dependence on Domestic Market

While India remains a key growth driver, limited international presence constrains geographical diversification and exposure to global demand opportunities.

- Margin Sensitivity due to Value-segment Concentration

A significant presence in the economy and mid-premium segments can limit pricing flexibility and impact margin expansion in a competitive environment.

- Exposure to Raw Material Price Volatility

Fluctuations in cotton, crude-linked synthetic fibres and yarn prices can impact input costs, requiring continuous cost management and pricing discipline.

- Intensifying Competition in Premium and Digital- first Segments

Increasing presence of premium brands and D2C players necessitates continuous innovation and brand repositioning.

Opportunities

- Premiumisation and Product Upgradation

Rising consumer preference for branded and premium innerwear presents an opportunity to improve product mix and margins.

- Strategic Consolidation through Proposed Merger

Integration of promoter-group entities is expected to enhance operational control, reduce costs and improve governance standards.

- Expansion in Womens Innerwear and Athleisure Segments

Fast-growing categories such as womens wear and athleisure offer significant headroom for growth and diversification.

- E-commerce and Omni-channel Expansion

Growing digital adoption provides opportunities to strengthen direct-to-consumer reach and enhance brand visibility.

- Distribution Transformation through Project Lakshya

Transition towards a demand-driven, data-led distribution model can improve efficiency, inventory management and market penetration.

Threats

- Intense Competition from Organised and Unorganised Players

The innerwear market remains highly competitive, with pressure on pricing, innovation and distribution reach.

- Changing Consumer Preferences and Fashion Trends

Rapid shifts in consumer expectations require continuous product innovation and brand relevance.

- Macroeconomic and Demand Volatility

Inflationary pressures and fluctuations in discretionary spending can impact demand in value-driven categories.

- Global Geopolitical Risks and Supply Chain Disruptions

Escalating geopolitical tensions, particularly in the Middle East, may disrupt global trade flows, increase freight costs and create volatility in energy prices. This can indirectly impact raw material costs, export realisations and overall pricing strategies.

- Emergence of Digital-first and D2C Brands

New-age brands leveraging digital platforms and targeted marketing may intensify competition, particularly in premium segments.

Enterprise Risk Management

Dollar has a structured enterprise risk management framework to identify, assess and mitigate risks that may impact its operations and financial performance. The framework is continuously updated to incorporate evolving business dynamics, including changing consumer trends, digital disruption and global macroeconomic developments

Risk	Explanation	Mitigation
Safety Risk	The Company acknowledges the potential safety hazards posed by its manufacturing operations, including the risk of injury to employees who interact with plant, machinery and material handling equipment.	The Company has developed and implemented an extensive safety strategy, which is strictly followed. We provide frequent personnel training and third-party inspections to reduce risks associated with machinery and equipment. With expert advice, we have designed our plants to minimise human interaction with machines. In addition, we have implemented a behaviour- based safety approach at our factories, and all safety incidences, including unsafe acts, are reported and reviewed by our management team. These measures are intended to reduce safety risks and ensure compliance with established safety standards.
Sustainability Risk	The Companys manufacturing operations involve environmental risks that can impact the ecosystem. Water usage, energy consumption and hazardous waste generation are among the main concerns.	The Company has implemented several initiatives. We prioritise water conservation and replenishment and have invested in solar and wind power facilities to reduce energy usage. We have developed an effluent treatment plant with zero liquid discharge. These activities are part of our ongoing efforts to promote sustainability and reduce environmental impact.
Statutory Compliance Risk	The Company is exposed to the risk of noncompliance with rapidly changing laws and regulations, some of which are untested in courts and subject to interpretation.	The Company has a well-defined mechanism in place. Corporate professionals monitor and ensure compliance with relevant rules and regulations. The Company aims to follow all applicable laws and regulations.
Information Security Risk	The Company faces the risk of information security breaches, including cyber-attacks and internal data leakage, which can have a significant impact on business operations.	The Company follows strong information security protocols, including regular monitoring of security records to avoid hacking attempts. We protect data throughout its life cycle, including creation, storage, transmission and retrieval. With increasing digitalisation and growth in e-commerce channels, the Company continues to strengthen its IT systems and cyber security framework.
Demand & Supply Risk	The demand and supply landscape of our industry is constantly evolving, driven by changing customer preferences and economic factors. As a result, there is always a risk of demand fluctuations and supply chain disruptions, which can impact business operations and financial performance.	The Companys product line is diverse, catering to a wide range of customer demographics and lifestyle preferences. We also maintain a flexible supply chain network, allowing us to respond swiftly to changes in demand and supply. In addition, we continuously monitor industry trends and consumer input to identify potential possibilities and dangers and take proactive measures to address them. The Company is also aligning its portfolio with evolving consumer preferences, including premiumisation and growing demand for athleisure and functional products.
Procurement Risk	The shortage and price volatility of cotton yarn and other raw materials in the domestic and global markets can impact procurement operations and increase input costs.	Over time, the Company has developed solid ties with several suppliers, allowing it to diversify its raw material sources. Furthermore, we apply tight quality controls and routinely examine the quality of the raw materials we receive to ensure that they exceed our expectations. The Company also closely monitors global developments, including geopolitical tensions and energy price movements, which may impact input costs and supply availability.
Human Capital Risk	Non-availability of a competent workforce, high attrition rates and retention challenges can pose significant human capital risks. Moreover, a high attrition rate can lead to the loss of institutional knowledge and expertise, which can be difficult to replace. The cost of recruiting and training new employees can also add up quickly and impact the Companys bottom line.	The Company mitigates this risk by actively understanding employees needs and goals, providing long-term value for them, and prudently allocating resources through scenario planning and risk-reward analysis. The Company also prioritises employee involvement to foster a healthy work atmosphere and increase retention.
Currency Risk	There is a risk of adverse impact on the financials of the Company due to fluctuations in the exchange rate of the local currency against the US dollar, as a considerable portion of raw materials and capital equipment are imported, and the Company has export exposure.	The Company monitors exchange rate movements and hedges any open risks. We aim to source raw materials from local sources whenever possible to avoid reliance on imports and mitigate currency concerns. We consider long-term contracts with suppliers and customers to stabilise cash flows and mitigate currency swings. Global geopolitical developments are also monitored, as they may contribute to increased currency volatility.
Geography Risk	Overdependence on a single geographic location poses a potential threat to revenue if the economy of that region experiences a downturn. In addition, geopolitical developments in key regions may impact export demand and trade flows.	The Company operates in several regions and markets, both domestic and foreign. We have successfully created a substantial presence in several nations, particularly in the Middle East. By spreading revenue streams throughout regions, we can reduce the impact of economic downturns in specific areas. We regularly study market changes and consumer preferences to uncover chances for expansion and diversification, building a stronger and more resilient business model.

Human Capital

During the year, the Company continued to strengthen its human capital foundation by focusing on talent development, engagement, and building a future-ready workforce aligned with its growth strategy. Structured, competency-based hiring practices were further reinforced to attract talent that aligns with the organisations values and long-term objectives.

The Company continued to invest in employee capability building through targeted learning and development initiatives aimed at strengthening functional, behavioural and leadership competencies. Employee engagement remained a key focus area, supported by regular interactions, feedback mechanisms and workplace well-being programmes across manufacturing units. The Company also continued to promote an inclusive and diverse work environment through initiatives focused on womens participation and empowerment. Policies relating to diversity, inclusion and prevention of workplace harassment continued to be reinforced across the organisation.

As on 31^st March, 2026, the Company had a total workforce of 2,244 employees, comprising 1,662 men and 582 women. The Company continues to provide equal opportunities and remains committed to building a more diverse workforce.

Corporate Social Responsibility

Since inception, the Company has remained committed to creating a positive social impact by contributing to the economic, social, and environmental well-being of communities, particularly those that are underserved. Its CSR initiatives are aligned with its philosophy of inclusive growth and long-term value creation for society.

During the year, the Company invested RS. 210 lakh towards Corporate Social Responsibility (CSR) activities. The Company extended its support to a range of community development initiatives, including contributions towards educational institutions, healthcare facilities, and broader social welfare programmes, with a focus on improving access, quality, and outcomes reinforcing its commitment to sustainable and responsible growth.

Internal Control Systems and their Adequacy

The Company has established appropriate internal control systems for financial reporting, commensurate with its size, scale, and nature of operations. The Companys internal control policies and procedures are designed to provide reasonable assurance in achieving the following objectives:

- Ensuring that operations are conducted in an efficient and effective manner.

- Maintaining accuracy and reliability in financial reporting.

- Ensuring compliance with all applicable laws and regulatory requirements.

- Safeguarding assets and enabling timely prevention and detection of frauds and errors.

These control systems support operational efficiency, safeguard assets, and ensure accurate financial and operational reporting. The internal audit team and Audit Committee regularly review processes and controls, while the Company continuously evaluates risks and strengthens mitigation measures to maintain operational discipline and support sustainable growth.

Cautionary Statement

Certain statements contained in this report, including those relating to the Companys objectives, projections, estimates, expectations, or forecasts, may constitute forward-looking statements within the meaning of applicable securities laws and regulations. These statements are based on reasonable assumptions and expectations of future events; however, actual results may differ materially from those expressed or implied due to various risks and uncertainties.