This MD&A covers the eight mandatory heads prescribed under Schedule V of SEBI LODR, 2015 and should be read in conjunction with the Audited Financial Statements and Notes for FY 2025-26.
| USD 2.30 Bn | 7.3% CAGR | 5 | Global cotton bags market, 2025 | Indias cotton bag segment growth | Manufacturing units, 317,500 sq. ft. |
Cotton bags have emerged as one of the fastest-growing categories within the global sustainable packaging space, as retailers, institutions and consumers move away from single-use plastics. The global cotton bags market, valued at approximately USD 2.30 billion in 2025, is projected to reach approximately USD 4.28 billion by 2036, with Indias segment growing at a CAGR of around 7.3% - the second-fastest among major markets after China. Growth is being driven by municipal and national plastic bag bans that are converting cotton bags into a mandatory procurement item for retail and grocery chains, alongside rising demand from the automotive, food and promotional/corporate-gifting segments. Certified organic and GOTS-compliant cotton bags represent a fast-growing premium sub-segment, commanding a 15-35% price premium over conventional bags, with India supplying roughly 51% of the worlds certified organic cotton. Jute continues to complement this trend as a traditional natural-fibre alternative, with the global jute market (valued at approximately USD 2.8 billion in 2024) growing at a comparatively steadier pace of around 5.8% CAGR, supported largely by regulatory packaging mandates in India rather than broadbased retail adoption.
Indias cotton bag manufacturing base benefits from the countrys abundant raw cotton supply, low-cost weaving infrastructure and an established textile ecosystem, supporting both domestic consumption and a growing export orientation. Government initiatives such as Make in India and the Production-Linked Incentive (PLI) Scheme for textiles continue to support capacity expansion and technology upgradation among cotton bag producers, while widespread state-level single-use plastic bans have significantly expanded domestic demand. Indias broader cotton and textile ecosystem remains large and well-supported, with cotton textiles ranking as the second-largest source of employment after agriculture. The domestic jute bag industry, by contrast, remains anchored primarily by the Jute Packaging Materials Act, 1987, which mandates that a specified share of foodgrains and sugar be packed in jute bags, giving it a more policy-dependent demand base concentrated in West Bengal.
Indias cotton and cotton-based product exports (including yarn, fabrics and made-ups) stood at around USD 11.49 billion in FY25, with the USA, Bangladesh, Sri Lanka, the UK and the UAE as leading
2025, led by demand from Bangladesh, Vietnam and China, reflecting continued overseas appetite for Indian cotton-based textile products, of which cotton bags form a growing niche. At the finished-bag level, India remains one of the leading global exporters alongside China and Vietnam, which together account for the majority of world cotton bag shipments, with demand increasingly diversified across Central Asian, European and North American markets. Jute exports remain smaller by comparison, at approximately USD 229 million in FY25, led by the USA, UK and Germany, and continue to be supported by RoDTEP export incentives. Rising freight and logistics costs remain a common concern across both segments, alongside competition from other exporting nations such as China and Bangladesh.
Polyester and other non-woven synthetic bags remain a smaller, price-competitive segment, valued at roughly USD 150 million in India in 2025 and growing at a CAGR of about 12%; they compete with cotton and jute mainly on cost and durability rather than sustainability credentials.7
Sources: 1. Future Market Insights, Cotton Bags Market, 2026. 2. Datainte, Global Cotton Bag Market, 2026. 3. Straits Research, Jute Market, 2025. 4. IBEF, Cotton Industry in India, 2025. 5. IBEF, Jute Industry in India: Export Trends, Growth & Insights, 2025. 6. Volza, Global Cotton Bags Export Data, 2025. 7. Strategic Packaging Insights, Non-Woven Reusable Bags Market, 2026. Note: Figures are drawn from third-party industry/market-research publications cited above and have not been independently verified by the Company.
? Raw material price volatility - cotton and jute prices are both weather- and crop-yield-dependent, which can compress margins across the natural-fibre lines.
? Competition from lower-cost manufacturing hubs (China, Bangladesh, Vietnam) in both natural-fibre and polyester/synthetic bag segments.
? Rising freight and logistics costs affecting export competitiveness for cotton and jute products.
? Regulatory/policy dependence - a significant part of jute demand relies on continued government packaging mandates, which could change.
1 Currency fluctuation risk on the export side (cotton/jute) versus rupee-denominated domestic revenue (polyester), creating a mixed currency exposure profile.
The Company operates in a single reportable business segment: Manufacture and Export of Cotton & Jute Bags. Accordingly, segment-wise reporting under Ind AS 108 / AS 17 is not required.
Product-wise performance for FY 2025-26 is set out below:
| PRODUCT CATEGORY | FY 2025-26 REVENUE (\u20b9 LAKHS) | % OF TOTAL REVENUE | FY 2024-25 REVENUE (\u20b9 LAKHS) | % OF TOTAL REVENUE |
| Cotton Bags - Recycled | 3,282.01 | 12.34% | 3,133.82 | 12.34% |
| Cotton Bags - Organic | 821.39 | 3.09% | 1,129.12 | 4.45% |
| Cotton Bags - Fairtrade | 1,538.51 | 5.79% | 3,147.67 | 12.39% |
| Cotton Bags - Conventional | 14,576.93 | 54.82% | 12,750.19 | 50.19% |
| Jute Bags | 5,595.09 | 21.04% | 4,647.58 | 18.30% |
| Others | 773.23 | 2.91% | 593.06 | 2.33% |
| Total Revenue | 26,587.17 | 100% | 25,401.44 | 100% |
The management of Ecoline Exim Limited is cautiously optimistic about the business outlook for FY 2026-27 and beyond. Key factors underpinning this view include:
Continued growth in global and domestic demand for cotton bags, supported by expanding plastic-ban regulations, rising ESG-linked procurement by global retailers, and growing organised retail and e-commerce penetration. Sustained focus on the premium and certified organic cotton segment (e.g., GOTS certification) to access higher-value export demand and improve realisations. The new corporate office at Madhyamgram, along with the manufacturing facility and the additional leased unit, is expected to increase the Companys production capacity by approximately 12 million bags. This expansion is anticipated to enhance operational efficiency, strengthen client engagement, and support the growth of the business pipeline.
1 The Companys manufacturing infrastructure at Ahmedabad is being scaled to meet growing demand, subject to land registration and regulatory approvals. Operations at Ahmedabad are expected to commence in FY 2027-28. Polyester backpacks: Scale-up of the polyester backpack line for the domestic client is expected to add a new, diversified revenue stream, reducing dependence on natural-fibre cycles, with potential to convert this into a broader domestic or export client base over the medium term. Continued focus on deepening relationships with key export buyers, expanding the Companys footprint in Europe and the Americas. Focus on operational efficiency and cost management to help offset anticipated raw material price volatility, particularly given the developing Super El Nino and its potential impact on cotton and jute crop yields.
The management, however, cautions that the actual outcome may differ from these projections due to uncertainties in global trade conditions, commodity price volatility, and exchange rate movements.
| RISK CATEGORY | LEVEL | DESCRIPTION | MITIGATION STRATEGY |
| Raw Material Price Risk | High | Cotton and jute prices are both subject to significant seasonal, crop-yield and weather-related volatility (including monsoon/El Nio risk), directly impacting COGS. | Long-term supplier agreements for both cotton and jute; inventory optimisation; price pass-through clauses with select buyers. |
| Foreign Exchange Risk | Medium | Export revenues (largely cotton bag exports, along with jute) are USD/EUR denominated; depreciation of INR benefits exports but import costs also rise. | Periodic hedging via forward contracts. |
| Competition Risk | Medium | Growing competition in cotton bags from China, Bangladesh and Vietnam with cost advantages, and from Bangladesh jute exporters with EU GSP access. | Focus on quality, customisation, GOTS/organic certification, and reliability; premium product positioning in both cotton and jute segments. |
| Regulatory / Policy Risk | Low-Medium | Changes in mandatory jute packaging policy, cotton/textile export incentive structures (e.g., RoDTEP, PLI), or export duty changes could impact volumes across product lines. | Active engagement with industry bodies; diversification of product portfolio across cotton, jute and polyester. |
| Logistics Risk | Medium | International shipping disruptions, freight rate spikes, and port congestion affect delivery schedules for both cotton and jute exports. | Multi-carrier logistics strategy; advance booking; buffer inventory at export stage. |
| Credit / Counterparty Risk | Low | Risk of buyer defaults on export receivables. | Credit insurance / LC-backed transactions for new buyers; |
| RISK CATEGORY | LEVEL | DESCRIPTION | MITIGATION STRATEGY |
| periodic review of receivables ageing. | |||
| Regulatory / Land Risk | Medium | Pending land registration for Ahmedabad manufacturing plant (a key facility for cotton bag capacity expansion) may delay capacity expansion. | Active pursuit of resolution through legal and administrative channels; targeted resolution in H2 FY 2026-27. |
| Raw Material Supply Risk (Weather) | Medium-High | The developing Super El Nio and associated below-normal monsoon forecast for 2026 pose a risk to cotton and jute crop yields in key growing regions. | Diversified sourcing across growing regions; MSP-linked procurement support; inventory buffering ahead of anticipated shortfalls. |
The Company has implemented a robust system of internal controls; key features of the internal control framework include:
The Company has an adequate internal control system commensurate with the size, scale and nature of its manufacturing and export operations across cotton, jute and polyester product lines. Internal control systems are designed to ensure efficient use and protection of Company resources, accuracy in financial reporting, and compliance with applicable laws and regulations. Documented policies and standard operating procedures (SOPs) are in place covering procurement (raw cotton, jute and polyester sourcing), production, inventory management, quality control, and dispatch/export processes. The Company has appointed an Internal Auditor to conduct periodic internal audits, with findings reported to the Audit Committee of the Board. The Audit Committee reviews internal audit reports, adequacy of internal financial controls, and the effectiveness of risk management systems on a periodic basis. Segregation of duties is maintained across key functions such as purchase, production, sales, dispatch and accounts, to minimise the risk of error or fraud. Controls are in place for export documentation, letter of credit (LC) compliance, and foreign exchange transaction monitoring, given the Companys export-oriented revenue base. Physical verification of inventory (raw material, work-in-progress and finished goods) is carried out periodically, with reconciliation against book records. Statutory auditors, as part of their audit, evaluate the internal financial controls over financial reporting and report any material weaknesses, if identified, to the Audit Committee & Board. Regular reconciliation of accounts, physical verification of inventories, and fixed asset registers. Compliance with applicable Ind AS accounting standards and statutory requirements.
The Statutory Auditors have evaluated the internal financial controls as at 31st March 2026 and have not identified any material weakness.
Revenue PerformanceThe Company recorded a Total Revenue of ? 28,688.27 Lakhs in FY 2025-26 compared to ? 27,306.76 Lakhs in FY 2024-25, representing a growth of 5.06%.
ProfitabilityEBITDA for FY 2025-26 stood at ? 3,277.96 Lakhs with an EBITDA margin of 5.94%. Net Profit After Tax (PAT) was ? 2,018.49 Lakhs, translating to a PAT margin of 3.68%.
Pursuant to Schedule V, Clause (i) of SEBI LODR, 2015:
| KEY FINANCIAL RATIO | FY 2025-26 | FY 2024-25 | CHANGE (%) | EXPLANATION IF >25% CHANGE |
| Debtors Turnover Ratio (times) | 7.26 | 7.24 | 0.28% | NA |
| Inventory Turnover Ratio (times) | 5.15 | 6.78 | (24.07)% | NA |
| Interest Coverage Ratio (times) | 11.26 | 14.52 | (22.51)% | NA |
| Current Ratio | 2.68 | 2.02 | 32.33% | Due to increase in fund inflow from the IPO. |
| Debt-Equity Ratio | 0.36 | 0.45 | (19.22)% | NA |
| Operating Profit Margin (%) | 10.70% | 10.06% | 5.94% | NA |
| Net Profit Margin (%) | 7.25% | 6.99% | 3.68% | NA |
| Return on Net Worth / Equity (%) | 12.30% | 21.39% | 42.23% | The Company completed its Initial Public Offering (IPO) during the year, resulting in the dilution of its share capital. Accordingly, the change is significant. |
Return on Net Worth (RoNW) declined to 12.30% in FY 2025-26 from 21.39% in FY 2024-25, representing a decrease of 42.23%.
The decline was primarily attributable to the substantial increase in the Companys net worth during the year following the successful equity infusion pursuant to its Initial Public Offering. While the Company continued to generate healthy profits, the increase in Share Capital and the consequent expansion of the net worth base outpaced the growth in net profit for the year. As RoNW is calculated by dividing Net Profit by Net Worth, the enlarged equity base had a temporary dilutive impact on the ratio.
The decline in RoNW does not indicate any weakening of the Companys operational or financial performance. On the contrary, the strengthened capital base has enhanced the Companys financial
position and provides the necessary resources to support its strategic growth initiatives, including capacity expansion at the Ahmedabad manufacturing facility, the addition of new production units, expansion into the polyester backpack segment, and the funding of incremental working capital requirements.
The Management expects the Return on Net Worth to improve progressively over the medium term as the benefits of these investments are realized, production capacities are optimally utilized, and profitability scales in line with the expanded capital base.
| PARTICULARS | FY 2025-26 | FY 2024-25 |
| Total number of permanent employees | 183 | 199 |
| Employees at Ahmedabad Unit | 12 | 7 |
| Employees at head/corporate office (Kolkata / Madhyamgram) | 171 | 192 |
| Employee attrition rate | 12.06% | 4.50% |
| Man-days lost due to industrial disputes | NIL | NIL |
The Company continued to invest in employee training, safety, and well-being during the year. Key HR initiatives undertaken in FY 2025-26 include:
Safety audits and compliance with the Factories Act, 1948 and applicable labour welfare legislation. Performance management framework for senior and middle management.
Industrial relations remained cordial throughout the year. There were no strikes, lockouts, or work stoppages during FY 2025-26.
Ecoline Exim Limiteds journey began as a modest manufacturing unit rooted in the rich textile traditions of Bengal, built on a simple conviction - that natural fibres like cotton and jute held the key to a more sustainable future for global packaging and consumer goods. What started as a focused export operation, supplying cotton and jute bags to overseas buyers, steadily evolved into a diversified manufacturing enterprise with a growing footprint across product categories and geographies.
From a family-run export business to a publicly accountable, professionally governed enterprise.
Ecoline Exims journey to NSE Emerge
Over the years, the Company invested in strengthening its manufacturing base, building long-term relationships with international buyers across Europe and the Americas, and embracing the global shift toward sustainable, plastic-free packaging solutions. This organic growth was complemented by a willingness to diversify - most recently through entry into polyester backpack manufacturing for a domestic client, marking the Companys first meaningful step beyond natural fibres and into technical textiles.
1s the Companys ambitions grew - including the planned expansion of manufacturing infrastructure at Ahmedabad and the establishment of a new corporate office at Madhyamgram - the need for a stronger capital base to fund this next phase of growth became clear. This led the Company to its listing on NSE Emerge, a milestone that marked a new chapter in Ecoline Exims journey: from a family-run export business to a publicly accountable, professionally governed enterprise.
The listing on 30th September, 2025 was met with encouraging investor participation, reflecting confidence in the Companys business model, its position in the growing sustainable packaging space, and its plans for diversification and scale. The capital raised through the issue is being deployed toward capacity expansion at Ahmedabad, laying the foundation for the Companys next stage of growth.
Today, as a listed entity, Ecoline Exim Limited stands committed to the highest standards of corporate governance, transparency and disclosure, while continuing to build on the values that have guided it since inception - quality, sustainability, and long-term partnership with its customers, employees and shareholders.
After months of planning and reconstruction, Ecoline Exim Limiteds newly redeveloped corporate office at Madhyamgram is now fully operational from April 2026, alongside the Companys factory building located in the same premises - together forming a stronger, more integrated base for the Companys operations.
The reconstruction, carried out over the previous year, has equipped the corporate office with modern facilities for client meetings, buyer sampling discussions, and closer collaboration between the Companys export, production and finance teams, while the adjoining factory buildings support manufacturing and production activity in close proximity to the administrative hub.
Having the corporate office and factory located within the same area is expected to improve coordination between management, production and client-facing teams, streamline decision-making, and strengthen the Companys engagement with existing and prospective export buyers. More broadly, this development reflects Ecoline Exims steady evolution - from a cotton and jute bag manufacturer into a diversifying, professionally managed enterprise - and positions the Company well to support its expanding business pipeline in the year ahead.
Ecoline Exim Limiteds manufacturing strength is built on a robust and growing infrastructure base. The Company currently operates five factories with a combined manufacturing area of 317,500 sq. ft., supporting its production across cotton bags, jute bags, and the newly introduced polyester backpack line.
This multi-facility footprint allows the Company to maintain operational flexibility, distribute production efficiently across product lines, and manage capacity in line with growing export and domestic demand. Together, this expanding infrastructure base reflects Ecoline Exims steady progress from a focused cotton and jute bag manufacturer into a diversified enterprise with the manufacturing depth to support its long-term growth ambitions.
| FACTORY | LOCATION | AREA | USP |
| Factory I | Barasat, Kolkata | 68,502 sq. ft. | Eastern hub, jute supply chain proximity |
| Factory II | Badu Unit 1, Kolkata | 1,111,015 sq. ft. | Eastern hub \u2013 core production hub |
| FACTORY | LOCATION | AREA | USP |
| Factory III | Unit 1, Ahmedabad | 37,982 sq. ft. | Western hub, export logistics via Gujarat ports, cotton hub |
| Factory IV | Badu Unit 2, Kolkata | 60,000 sq. ft. | New unit, 12M bags/year, polyester backpack production launched |
| Factory V | Taki Road, Kolkata | 40,000 sq. ft. | New unit taken on lease, 10M bags/year \u2013 latest capacity addition |
This Management Discussion & Analysis contains statements that are forward-looking statements within the meaning of applicable securities laws and regulations. These forward-looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realised. Actual results, performance, or achievements may differ materially from those expressed or implied in such statements, owing to factors such as changes in global or Indian economic conditions, government policies, commodity prices, exchange rates, competitive pressures, or any other factors beyond the Companys control. The Company assumes no responsibility to publicly amend, modify, or revise any forward-looking statement, on the basis of any subsequent development, information, or events, or otherwise.
For and on behalf of the Board of Directors
Ecoline Exim Limited
Sudarshan Saraogi Chairman & Whole Time Director DIN:01149829
Saurabh Saraogi Managing Director DIN:01572950
Place: Kolkata
Date:10.08.2026
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