Durlax Top Surface Ltd Management Discussions

Annexure I

For the Financial Year Ended March 31, 2025

1. Economic and Industry Overview

FY 2024 25 saw Indias real GDP grow 6.5%, with Construction up 9.4% and Financial, Real Estate & Professional Services up 7.2%, supporting fit-out demand in our end markets. Globally, the IMFs April-2025 WEO projects growth to slow to 2.8% in 2025 (from 3.3% in the January update), reflecting tighter financial conditions and trade tensions. These dynamics create a resilient domestic base for Durlax even as global momentum moderates.

Acrylic solid surfaces continue to gain share across residential, commercial and institutional settings. Reputable estimates size the global market at ~US$1.87 bn (2023), projected to ~US$3.23 bn by 2033 ( 5.6% CAGR), driven by demand for seamless, non-porous materials with high cleanability and design flexibility. This hygiene focus aligns with NSF/ANSI 51 requirements for food-contact materials, and sustainability-minded specifications increasingly seeklow-emitting materials (e.g., UL GREENGUARD Gold)—a direction of travel that benefits high-quality acrylic surfaces.

Domestic demand remains strong: ~4.59 lakh homes sold in 2024 across the top-7 cities (ANAROCK), and office leasing hit a record 48.9 mn sq ft in H1-2025 (Knight Frank), both signaling robust fit-out cycles in which solid surfaces are specified for corporate, hospitality, healthcare and public infrastructure projects.

Industry estimates place the India acrylic solid surface market at ~US$140–145 mn in 2025, with a ~7–8% CAGR outlook, indicating a growing addressable base for Durlax. In line with green-building preferences, our

Luxor Acrylic UV Solid Surface is listed on the GRIHA product registry (valid 17 May 2024 – 16 May 2026), supporting project compliance with domestic low-emitting criteria.

In March 2025, the Government of India imposed a five-year anti-dumping duty on imports of Acrylic Solid Surfaces from China, following DGTRs final findings (F. No. 06/06/2023-DGTR, 26 Dec 2024) that concluded dumped imports caused material injury to the domestic industry; the measure (Notification No. 07/2025-Customs (ADD)) covers specified tariff items (including 3506 99 99, 39205111/19/99, 39206390, 39219039, 39269069) and prescribes a rate of up to USD 0.18/kg (with a NIL rate for one named producer), thereby leveling the playing field for Indian manufacturers.

2. Company Overview and FY 2024-25 Performance

Durlax Top Surface Ltd., a listed entity since June 2024, continues to build a strong brand-led presence in the engineered surface market through our flagshipbrands Luxor? and Heronitez ™. With our manufacturing base in Vapi, Gujarat, Durlax specializes in high-quality decorative solid surfaces and adhesives catering to a wide variety of design needs.

During FY 2024 25, our Company achieved a revenue of 122.65 crores, reflecting significant growth over the previous year. Of this, exports contributed 17 crores, marking a milestone in our international business journey. The Company is targeting 25 crores in export revenue for FY 2025 26, with focused efforts in

Middle East, Europe, and the United States.

Our profitability also improved significantly: y EBITDA increased to 14.00 crores from 11.04 crores in FY24 y PAT margin improved to 6.12%, up from 4.40% in the previous year

Our credit rating of ACUITE BBB- / A3 with a stable outlook reinforces confidence in our financial prudence.

3. Growth Drivers and Strategic Initiatives

Expanding Export Horizons

Durlax has laid a solid foundation for international growth. Our active participation in Big 5 exhibitions across Dubai, Saudi Arabia, South Africa, and Egypt has significantly improved brand visibility. Strategic sales partnerships are being established globally to facilitate efficient last-mile delivery and market penetration.

Domestic Strength and Market Presence

Durlax products are installed at 25+ airports, among them Goa (MOPA), Ahmedabad, Trichy, Kolkata, Lucknow, Bhubaneswar, Guwahati, Bagdogra, Vizag (GMR), and Chennai (Phase II), with a growing presence at international hubs including Mumbai International, Kathmandu International, and Maldives International. Beyond aviation, our participation in Kartavya Bhavan 3 the first of the ten Common Central Secretariat buildings underscores premium institutional acceptance: the project uses Luxor Acrylic UV Solid Surface for key exterior features and for all washroom and cafeteria counters, highlighting our reliability for high-traffic, hygiene-critical applications.

Channel and Digital Outreach

We maintain an active presence on Instagram (@durlax.official) and other digital platforms to engage design professionals and end consumers. Brand awareness has been boosted via curated experiences like bowling competition with leading architects and interior designers, aimed at relationship-building and sustained engagement.

We are also strengthening online sales channels and planning a more structured digital outreach strategy in FY 2025 26, including dedicated online sales teams.

Application Growth Across Verticals

Rising awareness around hygiene, aesthetics, and sustainability has led to increased adoption of acrylic solid surfaces in healthcare, education, hospitality, and infrastructure sectors. Our product versatility and customization capabilities uniquely position us to cater to these evolving needs.

4. Human Capital and Organizational Focus

At Durlax, we firmly people will fuel our next phase of growth. In FY 2025 26, we rolled out a structured incentive plan, directly linked to performance and designed to reward the right sales behaviors. The goal is to create a results-oriented culture driven by accountability, ownership, and growth.

To support our aggressive targets, we are scaling up hiring across departments with a focus on quality, attitude, and long-termfit. significantportion of our investment in FY 2025 26 will be towardsA Human

Resource development, training, and retention to build a future-ready organization.

5. Risks and Mitigation y Working Capital Intensity: Inventory and receivable cycles remain high due to SKU diversity. This is being addressed through analytics-led stock optimization and faster cash collection practices. y Raw Material Price and Forex Risk: With raw materials constituting ~79% of sales and 13% business from exports, price and forex fluctuations are being mitigated via vendor negotiation, supply chain diversification, and improved operating margins. y Competitive Landscape: While the market is fragmented, our brand strength, superior finishes, and reliability give us a competitive edge.

6. Outlook for FY 2025 26

We enter FY 2025 26 with strong momentum. Our export target of 25 crores, coupled with deeper brand penetration, digital expansion, and people-focused strategies, position us well for sustainable growth. We will continue investing in process innovation, technology, and customer relationships to deliver long-term value to all stakeholders.

The solid surface industry is at the cusp of exponential growth — and Durlax is ready to lead it.

For and on behalf of the Board of Directors

Durlax Top Surface Ltd.

Date: May 13, 2025