Dutron Polymers Ltd Management Discussions

For the Financial year ended 31st March, 2026

1. Introduction

Dutron Polymers Limited was formed to manufacture Plastic Pipes and Fittings, as an organized supplier to the Industry at Dist. Kheda, Gujarat. The Company had a technical license from world leaders in the field of plastic pipes, M/s Wavin Overseas, The Netherlands for Manufacture HDPE, PVC pipes till 2006. Today, the Company has been recognized as one of the most reliable quality plastic pipes & fittings manufactures in India. Its products HDPE, PVC & CPVC pipes and fittings cater to several market areas-Agriculture, Industries, Buildings &Construction and Infrastructure projects. The Company is ISO 9001: 2015 certified and has established as a quality brand in all parts of the country, especially in Gujarat and neighbouring states.

2. Global Economic Outlook

The global economy witnessed modest slowdown in F.Y. 2025-26, with GDP growth of around 3% as per IMF World Economic outlook. Developed nations had growth rate of around 1.5% and developing countries had growth of around 4%. These emerging markets such as India, Vietnam and Brazil were engines of consumption. Key drivers included rising household purchasing power and stable employment easing inflation, rate stabilization, and a targeted expansion in manufacturing sector on digital services. Global Plastic industries growth was heavily led by packaging, infrastructure, and automotive sectors, alongside an escalating shift toward recycled-content mandates and sustainable alternatives. Systemic risks persisted due to geopolitical conflicts, energy security concerns, and climate- related disruptions. Nevertheless, global stability remained threatened by geopolitical conflicts, energy insecurity, and climate disruptions

3. Indian Economic Outlook

India was a highly resilient economy in FY 2025-26. registered a strong 6.7% GDP growth in FY 2025-26. This was largely attributed to infrastructural spending and to some extent by GST reforms by the government. There was a drop in inflation down to historic lows under 2%. Amid continuing geopolitical tensions and new US tariff structures, India continued to show stable economy due to strong corporate health and a booming rural economy. The PMI for Manufacturing was well above 50, indicating expansionary trends.

4. Industry Structure and Developments

During the 2025-26 fiscal period, Indias plastics industry operated as a highly fragmented ecosystem where micro, small, and medium enterprises (MSMEs) accounted for nearly 90% of all processing units. Consumption remained geographically concentrated, with Western India driving 46.55% of national demand, heavily anchored by industrial clusters in Gujarat and Maharashtra. While domestic polymer production saw major expansions, the industry faced a 2.5 million-tonne annual feedstock deficit, relying heavily on imports and suffering from raw material price volatility. In terms of market allocation, the packaging sector dominated with a 41.62% market share, followed closely by infrastructure applications like PVC and HDPE piping.

The India plastic industry, valued at approximately USD 47 billion in 2026, is expected to reach USD 64 billion in next 5 years with annual growth rate of about 6%. Major growth segments included irrigation pipes, packaging films, and medical- grade polymers.

Key developments in plastic industry include

• Technology: Widespread adoption of AI-enabled monitoring in extrusion and robotics in material building

• Policy: Progressive bans on Single-use plastics and Structured EPR norms promoted cycling.

• Trade: Export momentum continued in Africa and ASEAN; antidumping duties on Chinese polymers under review.

5. SWOT Analysis

Strengths	Weaknesses
Established domestic brand	High dependency on crude-based inputs
Large-scale operations	No manufacturing presence overseas
Strengths	Weaknesses
Vertical integration	Project delays tied to public tenders
Opportunities	Threats
Rural infra development	Severe polymer price volatility
Huge public Cap-ex plan	Regulatory tightening by CPCB
Potential of high value finished products for exports	Dumping by regional competitors

6. Opportunities and Threats

• Opportunities:

> The Governments Capital Expenditure on urban infrastructure, sanitation and irrigation creates long term demand for plastic piping, ducts, and tanks.

> The Swachh Bharat and Smart Cities Mission continue to support demand for water management systems where polymers play a vital role.

> NEW FTAs with Australia, UAE and talks with ASEAN nations open channels for export-led growth.

> The adoption of digital agriculture and smart irrigation has led to increased demand for sensor-compatible polymer conduit systems.

• Threats:

> Volatility in crude oil prices continues to impact plastic raw material cost structures

> Environmental compliance costs due to CPCB mandates may increase, particularly for waste heat and effluent management.

> Currency volatility affects export competitiveness, especially with rising freight charges post-Hormuz crisis.

> Anti-dumping issues with neighboring countries such as China and Bangladesh add pricing pressures.

7. Segment wise or product wise performance

Dutron Polymers Limited maintained steady growth in sales of PVC & CPVC Pipes & Fittings during FY 2026-27. However, sales revenue dropped by sizeable quantity in HDPE Pipes sector, primarily due to curtailed government projects in Jal Jeevan Mission, and non-spending of Gujarat Water Supply & Sewerage Board in water supply projects.

8. Outlook

Looking ahead to FY 2026-27, Dutron Polymers Limited anticipates good revenue growth.

9. Financial performance with Respect to Operational performance

Financial Year	Sales ( in Lakh)	PBT ( in Lakh)
2021-22	12455	364
2022-23	13191	358
2023-24	11924	357
2024-25	10403	352
2025-26	9191	351

10. Key Financial Ratios

Ratio	F.Y. 2024-25	F.Y. 2025-26	Change	Analysis
Current Ratio	6.09	5.12	-16%	The Current Ratio decreased mainly due to increase in current liabilities during the year, while growth in current assets remained comparatively moderate. However, the ratio continues to indicate a comfortable liquidity position of the Company.
Debt to equity Ratio	16.17%	11.70%	-27.67%	The Debt Equity Ratio improved due to reduction in total borrowings and increase in shareholders equity through retention of profits, indicating reduced dependence on external debt.
Inventory Turnover	9.50	6.17	-35.03%	The decrease in Inventory Turnover Ratio is mainly due to higher average inventory levels and reduction in sales turnover during the year, resulting in relatively slower inventory movement.
Interest coverage Ratio (Debt Service Coverage Ratio)	6.64	7.04	6.01%	The increase in Debt Service Coverage Ratio is mainly attributable to reduction in finance costs and adequate earnings available for servicing debt obligations during the year.
Net Profit Margin (%)	2.62	2.71	3.46%	Net Profit Ratio improved marginally due to better operational efficiency and cost management during the year.

11. Cautionary developments

This report contains forward-looking statements relating to the Companys future business, financial and operational performance, and strategies. These are based on managements current expectations and are subject to uncertainties. Actual outcome may differ due to change in regulatory, economic, or geopolitical conditions.