Eleganz Interiors Ltd Management Discussions

Global Economic Review

The global economy demonstrated resilience as of March 2026 despite persistent geopolitical tensions, trade uncertainties and inflationary pressures across major economies. Economic activity remained supported by improving supply chain conditions, easing commodity prices, and sustained investments in technology and infrastructure. However, growth continued to remain below long-term historical averages due to ongoing macroeconomic and geopolitical challenges.

Advanced economies witnessed moderate growth during the period, with economic activity impacted by relatively tight monetary conditions, elevated borrowing costs, and cautious consumer spending. The United States maintained stable growth supported by resilient domestic demand, a strong labour market and continued investments in digital and artificial intelligence-driven sectors. In contrast, the Eurozone experienced slower growth owing to subdued industrial output, weak manufacturing activity, and energy-related uncertainties.

Emerging market and developing economies continued to outperform advanced economies, driven by stronger domestic demand, infrastructure development, and manufacturing expansion. China recorded moderate economic growth supported by policy stimulus and infrastructure investments, although challenges in the real estate sector and weaker external demand continued to weigh on its outlook.

Global inflation showed signs of moderation during the year as supply-side pressures eased and commodity prices stabilized. Nevertheless, inflation remained above central bank target levels in several economies, prompting monetary authorities to maintain a cautious policy stance. While some central banks signalled a gradual shift toward monetary easing, interest rates largely remained elevated to ensure sustained price stability.

Global trade witnessed gradual improvement with easing logistics disruptions; however, trade flows remained influenced by geopolitical realignments, tariff-related uncertainties, and regional conflicts. Commodity markets, particularly energy markets, remained volatile due to supply-side concerns and geopolitical developments.

Overall, the global economic environment as of March 2026 remained stable yet cautious, characterized by moderate growth, easing inflation, and persistent external risks. The outlook continues to depend on monetary policy normalization, geopolitical stability, and sustained global demand recovery.

Regional Growth (%)	2026	2025
World output	3.3	3.3
Advanced economies	1.8	1.9
Emerging and developing economies	4.2	4.2

(Source: International Monetary Fund (IMF), World Economic Outlook, 2026.)

The Indian economy continued to demonstrate strong resilience and sustained growth during the financial year ended March 2026, supported by robust domestic demand, increased infrastructure spending and stable macroeconomic fundamentals. India remained one of the fastest-growing major economies globally, driven by strong government policy support, rising private consumption, and expanding manufacturing and services sectors.

Indias Gross Domestic Product (GDP) recorded healthy growth during the year, supported by continued public capital expenditure, digital transformation, and improved business sentiment. Government initiatives such as infrastructure development, production-linked incentive (PLI) schemes and policy reforms further strengthened industrial and economic activity.

The manufacturing sector witnessed steady expansion, aided by improving capacity utilization, supply chain normalization, and rising investments in key industries. The services sector continued to remain a major growth driver, supported by strong performance in financial services, information technology, telecommunications, logistics, and retail sectors.

Inflation moderated during the year due to easing commodity prices and improved supply-side management, although food inflation remained subject to seasonal volatility. The Reserve Bank of India maintained a balanced monetary policy approach, focusing on inflation control while supporting economic growth and financial stability.

Indias banking and financial sector remained stable with improved asset quality, healthy credit growth, and adequate liquidity. Credit demand from retail, infrastructure, and industrial sectors remained strong, supporting investment activity across the economy.

External sector performance remained stable despite global uncertainties. Merchandise exports faced pressure from weaker global demand; however, services exports remained robust, supported by strong global demand for IT and business services. Foreign exchange reserves remained comfortable, providing resilience against external shocks and currency volatility.

Overall, the Indian economic outlook as of March 2026 remained positive, supported by strong domestic fundamentals, policy continuity, infrastructure-led growth, and rising private sector investments. While global uncertainties and geopolitical risks continue to pose challenges, India remains well-positioned to sustain its growth momentum over the medium to long term.

Growth of the Indian Economy

Regional growth (%)	FY 23	FY 24	FY 25	FY 26
Real GDP growth (%)	7.2	8.2	6.5	6.7

(Source: Ministry of Statistics and Programme Implementation (MOSPI), Reserve Bank of India (RBI))

Growth of the Indian Economy Quarter by Quarter, FY 2025-26

Particular	Q1 FY 26	Q2 FY 26	Q3 FY 26	Q4 FY 26
Real GDP growth (%)	6.7	5.6	6.2	7.4

(Source: Ministry of Statistics and Programme Implementation (MOSPI))

Sectoral Performance

Manufacturing

The manufacturing sector recorded steady growth supported by policy incentives, infrastructure development, and improved domestic demand conditions. Capacity utilisation improved across key industries, reflecting stronger investment sentiment.

Services

The services sector remained the dominant contributor to economic growth, driven by strong performance in IT services, financial services, logistics, telecommunications, and retail.

Infrastructure

Infrastructure activity remained robust, supported by sustained government capital expenditure in roads, railways, ports, and urban development projects.

Opportunities and Outlook

The medium-term outlook for the Indian economy remains positive, supported by strong domestic fundamentals, rising investment activity, and ongoing structural reforms. Growth is expected to be driven by infrastructure expansion, manufacturing competitiveness, digital transformation, and a growing consumption base.

India continues to benefit from favourable demographics, increasing formalisation of the economy, and integration into global supply chains.

Risks and Concerns

Key risks to the outlook include global geopolitical tensions, volatility in commodity prices, tightening financial conditions in advanced economies, and potential disruptions in global trade. Domestic risks include inflationary pressures, cyclical fluctuations in consumption demand.

Union Budget FY 2025 26 Economic & Policy Review

Overview

The Union Budget FY 2025 26, presented by the Government of India, laid strong emphasis on sustaining high economic growth, strengthening macroeconomic stability, and advancing inclusive development. The Budget focused on four key growth engines agriculture, micro, small and medium enterprises (MSMEs), investment, and exports supported by continued fiscal consolidation and capital expenditure-led growth strategy.

Key Fiscal Highlights

The Budget estimated a nominal GDP growth of around 10% for FY 2025 26, reflecting continued expansion in economic activity. Total expenditure was budgeted at approximately 50.65 lakh crore, representing a steady increase over the previous year, with a strong focus on capital expenditure to drive infrastructure development and long-term productive capacity.

Total receipts (excluding borrowings) were projected at around 34.96 lakh crore, indicating robust revenue buoyancy supported by direct and indirect tax collections. The fiscal deficit was targeted at 4.4% of GDP, demonstrating the Governments continued commitment to fiscal consolidation while supporting growth momentum.

Growth and Development Priorities

The Budget placed significant emphasis on infrastructure development, rural prosperity, and manufacturing competitiveness. Large-scale investments were directed towards roads, railways, logistics, urban infrastructure, and energy transition projects, aimed at improving efficiency and enhancing connectivity across regions.

MSMEs and startups received enhanced support through expanded credit guarantee schemes and improved access to institutional finance. Export competitiveness was strengthened through policy support and sector-specific incentives, particularly in manufacturing and value-added sectors.

Taxation and Reforms

The Budget introduced rationalisation measures in direct taxation aimed at improving compliance and increasing disposable income for the middle class. Revisions in tax slabs and compliance procedures were expected to enhance consumption demand and ease of doing business.

On the indirect tax front, rationalisation of customs duties on key inputs was undertaken to promote domestic manufacturing, particularly in sectors such as electronics, renewable energy, and pharmaceuticals.

Global Interior Designing Market Overview

The global interior designing market continues to demonstrate steady growth, supported by rising urbanization, expanding real estate development, increasing disposable income and evolving consumer preferences toward aesthetically appealing and functional spaces. Interior design services have become increasingly essential across residential, commercial, hospitality, healthcare, and retail segments, driven by the growing emphasis on optimized space utilization, enhanced customer experience and personalized environments.

The global interior design market was valued at approximately USD 185.7 billion in 2025 and is estimated to reach USD 196.2 billion in 2026. The market is projected to grow to around USD 298.0 billion by 2033, registering a CAGR of 5.4% during 2026 2033. Growth is primarily attributed to increasing demand for renovation and remodelling projects, rising adoption of smart homes and greater preference for sustainable and premium interior solutions.

The commercial interior design segment continues to dominate the global market, accounting for nearly 69.5% of market share, driven by rising investments in office spaces, co-working facilities, retail outlets, hotels, and healthcare infrastructure. Simultaneously, the residential segment is witnessing robust growth owing to increasing consumer spending on modular kitchens, customized furniture, smart storage solutions, and luxury home d?cor.

Region-wise, North America remains the largest market due to high expenditure on luxury interiors, remodeling activities, and technology-enabled design solutions. Asia-Pacific is emerging as the fastest-growing region, led by rapid urban development, rising middle-class income, and growing construction activities in countries such as India and China. Increasing demand for modern residential and commercial spaces in emerging economies is expected to significantly contribute to future market expansion.

Key industry trends include growing adoption of sustainable and eco-friendly materials, smart automation, 3D visualization and virtual reality-based design solutions, and biophilic design concepts incorporating natural elements. Additionally, demand for minimalist yet functional interiors, modular furniture, and wellness-focused spaces continues to reshape market dynamics. These trends reflect a broader consumer shift toward comfort, personalization, and long-term value creation in interior spaces.

Despite favourable growth prospects, the industry faces challenges such as fluctuating raw material prices, supply chain disruptions, skilled labour shortages and intense competition from organized and unorganized players. However, continued technological advancements, rising demand for premium interiors and expanding real estate activity are expected to support long-term growth of the global interior designing market.

Indian Interior Designing Market Overview

The Indian interior designing market continues to witness robust growth, driven by rapid urbanization, rising disposable incomes, expansion in the real estate sector, and evolving consumer preferences toward modern, functional, and aesthetically appealing spaces. Increasing demand for organized living and working environments across residential, commercial, hospitality, retail ,IT & ITeS, Global Capability Centres (GCCs), industrial and manufacturing facilities, commercial offices, data centre and warehousing, sectors has significantly contributed to market expansion. The growing influence of global design trends, coupled with rising awareness regarding space optimization and personalized interiors, has further accelerated industry growth.

Indias interior design market is experiencing strong momentum, supported by increasing residential housing demand, commercial infrastructure development, and rising renovation activities. The market is estimated to have reached approximately USD 31 33 billion in 2025 and is expected to grow at a CAGR of 7 8% over the medium term, outpacing global growth rates. The sectors expansion is largely fuelled by increasing urban housing projects, premium residential developments, office space demand, and growth in organized retail and hospitality infrastructure.

The commercial segment is witnessing substantial growth due to expanding corporate offices, co-working spaces, shopping malls, hotels, and institutional infrastructure.

From a regional perspective, major metropolitan cities such as Mumbai, Delhi, Bengaluru, Hyderabad and Pune continue to dominate demand due to high real estate activity and greater consumer purchasing power. However, Tier-II and Tier-III cities are increasingly emerging as important growth centres, supported by improving infrastructure, rising aspirations and increasing adoption of branded interior solutions.

Key industry trends shaping the Indian market include increasing adoption of modular interiors, sustainable and eco-friendly materials, smart home integration and technology-enabled design services such as 3D visualization and virtual walkthroughs. Consumers are increasingly prioritizing multifunctional furniture, minimalist designs, energy-efficient lighting and wellness-oriented living spaces. The growing penetration of digital platforms has also enabled online design consultations and improved accessibility to organized interior service providers.

Despite strong growth prospects, the industry faces challenges including volatility in raw material prices, supply chain disruptions, fragmented market structure, shortage of skilled labour and pricing pressure from unorganized players. Nevertheless, continued urban development, government-led infrastructure initiatives such as Smart Cities Mission, rising consumer aspirations and increasing premiumization are expected to support sustained long-term growth of the Indian interior designing market.

Risk management

Price volatility risk: Price volatility in raw materials such as wood, plywood, laminates, steel, glass, fabrics, and other furnishing components remains a significant risk for the interior designing industry. Fluctuations in commodity prices, transportation costs, import duties, and foreign exchange rates can adversely impact procurement costs and overall project margins. Sudden increases in input costs may lead to pricing pressure, reduced profitability, delays in project execution, and challenges in maintaining competitive pricing, particularly in fixed-price contracts. Additionally, supply chain disruptions and inflationary pressures may further intensify cost uncertainties.

Mitigation: The Company focuses on strategic sourcing, maintaining strong vendor relationships, optimizing inventory management, and adopting prudent pricing strategies to enhance cost efficiency and reduce exposure to price fluctuations.

Supply chain risk: Supply chain disruptions remain a key risk for the interior designing business, as timely availability of raw materials, furnishings, fixtures and imported components is critical for seamless project execution. Delays arising from transportation bottlenecks, logistics constraints, vendor dependency, geopolitical uncertainties, import restrictions or global trade disruptions may adversely affect procurement timelines and increase project costs. Such disruptions can lead to delays in project completion, and exert pressure on operating margins. The risk is further amplified by dependence on multiple suppliers for specialized materials and customized products.

Mitigation: The Company emphasizes supplier diversification, strategic procurement planning, inventory optimization, and strengthening vendor relationships to ensure continuity of supply and efficient project delivery.

Quality control risk: Maintaining consistent quality standards across design execution, raw materials, furnishings, and on-site installations remains a critical risk for the interior designing business. Any compromise in material quality, workmanship, finishing, or installation standards may result in project rework, cost overruns, delays, customer dissatisfaction and reputational damage. The risk is heightened due to dependence on multiple vendors, contractors and third-party service providers involved in project execution. Variations in supplier quality, human error, and inadequate supervision may adversely impact the final deliverables.

Mitigation: The Company focuses on stringent quality assurance processes, vendor evaluation, regular site inspections, adherence to design specifications and continuous monitoring of execution standards to ensure consistent delivery of high-quality projects.

Strengths

1. Strong Design Expertise and Execution Capabilities

The Companys strong design capabilities, coupled with efficient project execution, enable it to deliver innovative, functional and aesthetically appealing interior solutions tailored to diverse customer requirements.

2. Diverse Project Portfolio

A diversified presence across real state, commercial, hospitality, retail, and institutional segments reduce dependency on any single market segment and provides stable business opportunities.

3. Customer-Centric Approach

The Company focuses on understanding customer preferences and delivering customized solutions, resulting in enhanced customer satisfaction, repeat business, and long-term relationships.

4. Skilled Workforce and Professional Team

A team of experienced designers, project managers, architects and execution professionals strengthen the Companys ability to maintain quality standards and timely project delivery.

5. Strong Vendor and Supplier Network

Established relationships with suppliers, contractors and service providers ensure timely procurement of quality materials and efficient project execution.

6. Focus on Quality and Innovation

Continuous emphasis on quality assurance, modern design trends, sustainable materials and innovative concepts enhances the Companys competitive positioning.

7. Technology Adoption

Use of advanced design tools and virtual walkthroughs improves design accuracy, customer engagement, and project planning efficiency.

8. Growing Market Opportunity

The Company operates in a high-growth industry supported by increasing urbanization, rising disposable income, expanding real estate activity and growing demand for premium interiors.

9. Brand Reputation and Market Presence

A strong brand image and positive market reputation help in acquiring new clients, retaining existing customers and sustaining long-term growth.

10. Ability to Offer End-to-End Solutions

The capability to provide end-to-end services, from concept development and design to procurement and final execution, creates value for customers and strengthens business competitiveness.

Weaknesses

1. High Dependence on Skilled Workforce

The interior designing business is highly dependent on skilled designers, architects, project managers, and execution teams. Any shortage or attrition of skilled professionals may impact project quality and delivery timelines.

2. Project Execution Delays

Delays in procurement, labour availability, client approvals, or on-site execution may lead to project overruns, increased costs, and customer dissatisfaction.

3. Fragmented and Competitive Market

The industry is highly fragmented, with significant competition from organized players as well as local and unorganized contractors, resulting in pricing pressure and margin challenges.

4. Working Capital Intensive Operations

Interior designing projects often require significant upfront expenditure on materials, labour, and vendor payments, leading to higher working capital requirements and cash flow pressure.

5. Dependence on Third-Party Vendors and Contractors

Reliance on external suppliers, contractors, and service providers for materials and execution may expose the Company to quality issues, supply disruptions and coordination challenges.

6. Limited Scalability in Customized Projects

Highly customized projects may restrict scalability due to the need for intensive planning, client interaction, and project-specific execution.

7. Risk of Design Trend Obsolescence

Rapidly changing customer preferences and evolving design trends require continuous innovation. Failure to adapt to market trends may affect competitiveness.

8. Credit and Payment Risks

Delays in customer payments or defaults can affect working capital and cash flow management

Opportunities

1. Growing Real Estate Sector

Expansion in residential, commercial, retail, and hospitality real estate continues to create strong demand for interior design services.

2. Rising Urbanization and Changing Lifestyles

Increasing urban population, higher disposable income, and evolving lifestyle preferences are driving demand for aesthetically appealing and functional interior spaces.

3. Growth in Premium and Luxury Segment

Rising consumer preference for premium, customized, and luxury interiors offers opportunities for higher-margin projects.

4. Increasing Demand for Modernisation & Space Transformation

Aging infrastructure and changing consumer tastes are fuelling demand for renovation, refurbishment, and remodelling services.

5. Commercial Infrastructure Development

Growth in offices, co-working spaces, hotels, healthcare facilities, and educational institutions presents significant business opportunities.

6. Technology Integration in Design

Adoption of advanced tools such as 3D visualization, virtual reality (VR), augmented reality (AR), and AI-based design solutions enhances customer experience and improves project execution.

7. Sustainable and Eco-Friendly Designs

Growing awareness of sustainability is increasing demand for energy-efficient, eco-friendly, and green interior solutions.

8. Expansion into Tier II and Tier III Cities

Rapid economic development and rising aspirations in smaller cities provide untapped market potential.

9. E-commerce and Digital Marketing Reach

Online platforms and digital channels enable wider customer reach, better lead generation, and enhanced brand visibility.

10. Strategic Partnerships

Collaborations with architects, real estate developers, contractors, and furniture manufacturers can create recurring business opportunities.

11. Customization and Smart Home Trends

Rising demand for personalized interiors and smart home integration creates opportunities for innovative design offerings.

12. Government Infrastructure Initiatives

Public infrastructure projects, smart city development, and urban redevelopment initiatives can generate substantial demand for interior design services.

Threats

1. Intense Market Competition

The industry faces significant competition from organized players, local designers, freelancers, and unorganized contractors, which may impact pricing power and market share.

2. Raw Material Price Volatility

Fluctuations in prices of materials such as wood, plywood, laminates, glass, steel, and furnishings can adversely affect project costs and profit margins.

3. Economic Slowdown

Any slowdown in the economy, reduced consumer spending or weakness in the real estate sector may lead to postponement or cancellation of interior projects.

4. Supply Chain Disruptions

Delays in procurement, logistics challenges or shortages of key materials can impact project timelines and customer satisfaction.

5. Regulatory and Compliance Risks

Changes in building regulations, safety norms, environmental standards, or taxation policies may increase compliance costs and operational complexity.

6. Dependence on Real Estate Growth

Since the industry is closely linked to real estate and infrastructure development, downturns in these sectors may negatively impact demand.

Company Overview

Eleganz Interiors Limited incorporated in April 18, 1996, as a leading Indian company engaged in providing professional services related to Interior Designing. In 2023, the Company transitioned into a public limited entity to strengthen its market position and unlock new growth opportunities. Over the past decade, Eleganz Interiors Limited has built a diverse client base ranging from individual consumers to large-scale business with a particular focus on the interior designing segment. Backed by a robust distribution network, a customer-centric approach, and dedicated sales and marketing teams, the Company delivers services efficiently across India enhancing both brand equity and market reach.

Order Book and new orders and timing and terms of contract awarded

Our Order Book and the new orders that we receive have a significant effect on our future revenue. Our Order Book as of 31.03.2026 consists of the value of 546.8 Cr unexecuted portions of our outstanding orders, that is, the total contract value of the existing contracts secured by us as reduced by the value of work executed (excluding cost escalation) and billed until the date of such order book. The value of the orders we receive has an impact on our future performance. We accept orders based on a number of factors such as the profit margin we expect to achieve after considering various factors including costs involved and execution timelines. Therefore, any cancellation of orders or premature foreclosure or termination of projects under construction by our clients may result in a reduction of our future revenue.

Project portfolio/ geographical distribution of projects

Our current portfolio predominantly comprises projects located in Maharashtra, Karnataka, Telangana ,Tamil Nadu and Andhra Pradesh. Our ability to bid for and secure new projects in major cities and expand our presence to cover other geographies will determine further growth in order booking and revenues. While we have expanded our operations outside Maharashtra and Karnataka, and our geographical footprint continues to grow, our project portfolio continues to be concentrated in Maharashtra and Karnataka. While majority of our clients are in the private sector as of now, we intend to bid for contracts in the public sector. We believe that our ability to bid for and undertake interior projects for MNC clients in and around our current area of operations will determine further growth in our Order Book and revenues. Further, we intend to increase the number of projects to be executed on a design-build basis, wherein our scope of work includes services in relation to designing elements of the project in addition to our construction and finishing services, which we believe is margin accretive.

Cost Management

Our project costs mainly comprise of raw material cost and other direct expenses. Our cost of material consumed constituted 76.98%, 80.46%, 75.46% and 81.07% of our total expenses for financial year ended 2026, 2025, 2024 and 2023. The key raw materials required for our business are wood and wood-based products, metals, glass, flooring and plumbing materials, HVAC Products, which form a predominant part of the material cost and these items are generally covered under the price adjustment mechanism in our contracts, except those on design build basis. Even though we factor in cost escalations for other construction expenses in our contract values, there may be an unanticipated increase in input costs in excess of our estimates thereby adversely impacting our profitability. Material wastage and costs of procurement of materials not covered by price adjustment mechanism are important factors that affect the cost of construction and our project budget. Our ability to restrict material wastages, optimize the employee costs and the labour costs directly impact our profitability.

Access to capital and cost of financing

Our business is working capital intensive. In many cases, significant amounts of working capital are required to finance the purchase of materials, the performance of engineering, construction and other work on projects before payments are received from clients. We have typically financed our capital requirements through bank borrowings, issuance of securities, client advances and internal accruals.

Access to adequate capital from bank borrowings is on such terms and conditions which are mutually acceptable to our Company and the lender. Further, our Company has been purchasing immovable assets in order to provide for and maintain sufficient collateral for such bank borrowings.

Competition

The Interior fit-out services industry is extremely competitive where the key factors of competition primarily comprise of quality, cost and time taken for completion of the project. Intense competition may lead to price wars, forcing the company to lower pricing to secure contracts, which could compress margins. The level and intensity of competition vary depending on the scope, scale and complexity of the project and on the geographical region where the project is executed. Our financial strength and execution track record help us qualify to bid for a large number of the projects. The selection process in our industry involves technical qualification followed by evaluation of pricing, which is generally subject to negotiations subsequently by the client with the shortlisted bidders. We, therefore, may not get a project solely on the basis of pricing of our proposal and this is generally consequent upon negotiations with the clients. Our competition includes entities that have been in the industry for decades, are well known in the market and may enjoy working relationships with our potential clients. Smaller and local entities may compete at a lower price due to difference in the value proposition.

Project implementation risks and other risks uncertainties

The execution of our projects involves various implementation risks including operational delays, delay or disruption in supply of raw materials, unanticipated cost increases, force majeure events, cost overruns or disputes with our counterparties. Increases in the prices of fit-out materials, labour and equipment, their availability and cost overruns could have an adverse effect on us. Further the timely availability of working capital is crucial and if we are not able to arrange for funds, we may be unable to source the requisite fit-out materials in a timely manner or at all and we may not receive bulk discounts on our purchases. The cost of fit-out materials, labour and equipment constitutes a significant part of our operating expenses. Our operations require various bulk fit-out materials including flooring materials, wood, glass, electrical & lighting fixtures and aggregate. At certain times, there can be a scarcity of wood and related products, which may cause substantial increases in the prices of such fit-out materials. Further, few of our contracts are on the basis of a fixed price or a lump sum for the project as a whole, which may not always include escalation clauses covering any increased costs we may incur. We may suffer significant cost overruns or even losses in these projects due to any unanticipated cost increases. If any of these risks materialize, they could adversely affect our profitability, which may in turn have an adverse effect on our overall results of operation.

Results of our Operations (Consolidated)

The following discussion on results of operations should be read in conjunction with the financial statements for the financial years ended March 31, 2026, March 31, 2025, March 31, 2024 and March 31, 2023: (in Lakhs)

Particulars	FY 2025- 26	Percentage (%) of Total Income	FY 2024- 25	Percentage (%) of Total Income	FY 2023- 24	Percentage (%) of Total Income	FY 2022- 23	Percentage (%) of Total Income
Revenue from operations	40,022.31	98.79%	39,270.62	99.72%	22,129.19	99.71%	19,025.86	99.52%
Other Income	491.19	1.21%	109.09	0.28%	63.51	0.29%	91.28	0.48%
Total Income	40,513.50		39,379.71		22,192.70		19117.14
Cost of goods consumed	25,425.20	62.76%	31,256.75	79.37%	18,371.72	82.78%	15,020.06	78.57%
Change in inventories of finished goods, work in progress and stock in trade Employee	3,260.77	8.05%	-1,766.03	-4.48%	-2,750.43	-12.39%	-373.62	-1.95%
Benefits expenses	1,198.88	2.96%	1,126.34	2.86%	937.53	4.22%	713.24	3.73%
Other Expenses	6,702.72	16.54%	5,348.71	13.58%	3,589.27	16.17%	2,331.81	12.20%
EBITDA	3,434.73	8.48%	3,304.84	8.39%	1,981.10	8.93%	1,334.38	6.98%
Finance Costs	360.50	0.89%	416.24	1.06%	348.68	1.57%	224.22	1.17%
Depreciation and Amortization expenses	314.80	0.78%	268.51	0.68%	203.34	0.92%	150.45	0.79%
Total Expenses	37,262.76		36,650.40		20,699.93		18,066.15
Profit/(Loss) before Tax	3,250.63	8.02%	2,729.19	6.93%	1,492.59	6.73%	1050.99	5.50%
Exceptional Item	59.74	-
Current Tax	910.70		726.48		397.89		25.23
Short/(Excess)
Provision of	21.49		45.13		9.62		-
Earlier Year
- Deferred Tax	-37.93		-21.58		-19.56		-5.37
Net Tax expenses	894.26		750.02		387.95		-
Profit/(Loss) after tax	2,296.62	5.67%	1,979.17	5.03%	1,104.64	4.98%	1031.13	5.42%

 

Particulars	FY 2025- 26	Percentage (%) of Total Income	FY 2024- 25	Percentage (%) of Total Income	FY 2023- 24	Percentage (%) of Total Income	FY 2022- 23	Percentage (%) of Total Income
Share of Profit / (Loss) of Associates and Joint Ventures	-85.95		91.56		115.95		-
Profit for the year	2,210.67	5.52%	2,070.73	5.27%	1,220.58	5.52%	1,031.13	5.42%
EBITDA Margin Interest	8.58%		8.42%		8.95%		7.01%
Coverage	8.65		7.29		5.10		5.28
Ratio
Current Ratio	1.65		2.24		1.37		1.45
Debt-equity ratio	0.24		0.04		0.83		0.72
PAT Margin	5.52%		5.27%		5.52%		5.42%
Networth	17,453.06		15,242.39		5,136.93		3,916.35
RoE %	13.52%		20.32%		26.96%		30.32%
Operating
Profit Margin	7.80%		7.73%		8.03%		6.22%
(%)
Inventory turnover ratio	5.55		4.98		4.27		6.98
Return on Net Worth	12.67%		13.59%		23.76%		26.33%
Debtors turnover ratio	4.12		8.62		5.28		5.78
RoCE%	14.41%		19.21%		18.88%		17.57%

Notes:

Revenue from operation means revenue from sale of services and other operating revenues.

EBITDA is calculated as Profit before tax +Depreciation + Interest Expense - Other Income.

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

PAT is calculated as Profit Before Tax - Tax Expenses

PAT Margin is calculated as PAT for the period /year divided by revenue from operations.

Interest Coverage Ratio is calculated by dividing Earnings Before Interest and Taxes (EBIT) by the Interest Expense.

Operating Profit Margin is calculated by dividing the Operating Profit by the Revenue and multiplying the result by 100.

Inventory Turnover Ratio is calculated by dividing the Cost of Goods Sold (COGS) by the Average

Inventory, indicating how many times a companys inventory is sold and replaced over a specific period.

Return on Net Worth (RoNW) is calculated by dividing the Net Profit by the Shareholders Equity and multiplying the result by 100.

Debtors Turnover Ratio is calculated by dividing the Revenue by the Average Trade Receivables, indicating how efficiently a company collects payments from its customers over a given period.

Current Ratio is calculated by dividing a companys Current Assets by its Current Liabilities, indicating its ability to meet short-term obligations.

Debt-Equity Ratio is calculated by dividing the Companys Total Debt by its Shareholders Equity, reflecting the proportion of debt used to finance the business relative to owners funds.

Net Profit Margin is calculated by dividing the Net Profit by the Revenue and multiplying the result by 100, which indicates the percentage of revenue that remains as profit after all expenses are deducted.

Return on Equity is ratio of Profit after Tax and Average Shareholder Equity.

Return on Capital Employed is calculated as EBIT divided by capital employed, where capital employed is defined as shareholders equity plus total borrowings {current & non-current} and EBIT is defined as profits before taxes and interest expenses less other income

Net Worth = Equity Share Capital + Reserve and Surplus (including surplus in the Statement of Profit & Loss) - Preliminary Expenses to the extent not written-off.

PRINCIPAL COMPONENTS OF OUR STATEMENT OF PROFIT AND LOSS ACCOUNT (CONSOLIDATED)

Total Income

Our total income for the financial year ended March 31, 2026, March 31, 2025, March 31, 2024 and March 31, 2023 were amounting to Rs. 40,513.50 lakhs, Rs. 39,379.71 lakhs, Rs. 22,192.70 lakhs & Rs. 19,117.14 lakhs respectively. Our total income comprises of revenue from operations and other revenue.

Revenue from operations

Our revenue from operations comprises of Revenue from General Contracting services and Design & Build services. Our revenue from operations accounted for 98.79%, 99.72%, 99.71% and 99.52% of our total income for the financial year ended March 31, 2026, March 31, 2025, March 31, 2024 and March 31, 2023 respectively.

Other Revenue

Other revenue primarily comprises of Interest Income, other non-operating income, interest on IT refund, foreign exchange gain, profit on sale of assets and share of profit in associates. Our other income accounted for 1.21%, 0.28%, 0.29% and 0.48% of our total income for the financial year ended March 31, 2026, March 31, 2025, March 31, 2024 and March 31, 2023 respectively.

Expenses

Our total expenses for the financial year ended March 31, 2026, March 31, 2025, March 31, 2024, and March 31, 2023 amounted to Rs. 37,262.76 lakhs, Rs. 36,650.52 lakhs, Rs. 20700.12 lakhs and Rs. 18,066.15 lakhs respectively. Our expenses primarily consist of the following:

Cost of goods consumed

Cost of goods consumed consists of cost of raw materials and labour & sub-contract charges which amounted to Rs. 25,425.20 lakhs, Rs. 31,256.75 lakhs, Rs. 18,371.72 lakhs and Rs. 15,020.06 lakhs for financial year ended March 31, 2026, March 31, 2025, March 31, 2024 and March 31, 2023 respectively.

Change in inventories of finished goods, work in progress and stock in trade

Change in inventories of finished goods, work in progress and stock in trade amounted to Rs. 3,260.77 lakhs, Rs. (1,766.03) lakhs, Rs. (2,750.43) lakhs and Rs. (373.62) lakhs for the financial year ended March 31, 2026, March 31, 2025, March 31, 2024 and March 31, 2023 respectively.

Employee Benefits Expense

Employee Benefits expenses primarily consist of salaries and wages, staff welfare expenses, gratuity, leave salary and contribution to provident fund & other post-retirement benefits for the financial year ended March 31, 2026, March 31,

2025, March 31, 2024 and March 31, 2023 amounted to Rs. 1,198.88 lakhs, Rs. 1,126.34 lakhs, Rs. 937.53 lakhs and Rs. 713.24 lakhs respectively.

Finance Costs

Finance cost consists of interest on borrowings, commission on bank guarantee & letter of credit and other borrowing cost amounted to Rs. 360.50 lakhs, Rs. 416.24 lakhs, Rs. 348.68 lakhs and Rs. 224.22 lakhs for the financial year ended March 31, 2026, March 31, 2025, March 31, 2024 and March 31, 2023 respectively.

Depreciation and Amortization

Depreciation and Amortization represents depreciation and amortization of our Property, Plant and Equipment. Depreciation and Amortization expense amounted to Rs. 314.80 lakhs, Rs. 268.51 lakhs, Rs. 203.34 lakhs and Rs. 150.45 lakhs for the financial year ended March 31, 2026, March 31, 2025, March 31, 2024 and March 31, 2023 respectively.

Other Expenses

Other expenses primarily include professional and consultancy charges, advertisement and business promotion expenses, power and fuel expenses, factory rents including lease rentals, retainership charges, repairs and maintenance, transportation charges, travelling and conveyance expenses, motor vehicle expenses, printing and stationary expenses and loss on sale of fixed assets and remuneration to auditors. Other expenses for the financial year ended March 31, 2026, March 31, 2025, March 31, 2024 and March 31, 2023 respectively amounted to Rs. 6702.60 lakhs, Rs. 5348.71 lakhs, Rs. 3589.27lakhs and Rs. 2331.81 lakhs respectively.

Human Resources

Our human capital is central to driving our growth strategy and ensuring smooth daily operations. At Eleganz Interiors Limited, we are committed to attracting and retaining top talent. Our workforce comprises experienced professionals with deep industry expertise, contributing significantly to the Companys overall performance. As of March 31, 2026, we employed 51 permanent staff members. Our head office, located in Dahisar East, Mumbai, serves as the central hub for administration, reporting, and factory support functions. We maintain a healthy and collaborative relationship with our employees. There have been no significant instances of labour disputes, work stoppages, strikes, or other disruptions. Our team members consistently demonstrate integrity and dedication within their respective roles, ensuring smooth operations and the achievement of our corporate objectives.

Internal control systems and their adequacy

The Companys internal financial controls related to its financial statements are appropriate and aligned with the size and nature of its business operations. An independent team of chartered accountants conducts internal audits across various locations, and their findings are summarized and presented to the audit committee for review and feedback. The audit committee holds discussions with the Companys statutory auditors to gain insights into the financial statements, reporting systems, internal controls, and adherence to established accounting policies and procedures.

Cautionary statement

The management discussion and analysis report containing your companys objectives, projections, estimates, and expectations may constitute certain statements, which are forward-looking within the meaning of applicable laws and regulations. The statements in this management discussion and analysis report could differ materially from those expressed or implied.