Eveready Industries India Ltd Management Discussions

GLOBAL ECONOMIC SCENARIO

The global economic landscape during FY 2025-26 remained complex and uneven, shaped by persistent geopolitical challenges, including the ongoing Russia-Ukraine conflict and escalating instability in West Asia. These developments, along with evolving trade dynamics such as US tariff actions, contributed to volatility in commodity prices and continued supply-side uncertainties. While inflationary pressures showed signs of moderation across major economies, they remained elevated in parts, prompting cautious monetary policy stances and tighter financial conditions. Global growth trends were mixed, with advanced economies experiencing modest expansion while emerging markets demonstrated relatively stronger resilience. Overall, the macroeconomic environment remained challenging, marked by uncertainty, cost pressures, and shifting demand dynamics.

This was further exacerbated by escalating tensions in West Asia, which heightened geopolitical risks and led to supply chain disruptions, disrupting key shipping routes like the Strait of Hormuz, increasing risks to Indias trade, particularly given its reliance on West Asia for energy imports, while also impacting exports through delays, higher logistics costs and exposure of ~14% of exports and ~21% of imports to the region.

Businesses and economies adapted in real time, with supply chains reconfiguring and trade flows shifting to alternative geographies. This was accompanied by increased trade realignment globally, with countries pursuing bilateral trade agreements to counter U.S. tariffs and geopolitical disruptions, while India accelerated trade negotiations with key partners and entered into trade agreements with the UK and advancing negotiations with the EU and USA.

INDIAN ECONOMIC OVERVIEW

Indias GDP grew at 7.6% in FY 2025-26, with 6.9% growth expected in FY 2026-27 (RBI - Monetary Policy Report), reinforcing its position as the fastest-growing major economy. Southeast Asia is benefitting from supply chain shifts away from China, while Sub-Saharan Africa is expected to see a gradual recovery. Downside risks persist due to global trade uncertainty, weaker investor sentiment, reduced external financing, and a sharp rise in external debt servicing.

Indias inflation environment remained benign at the start of 2026, with headline CPI inflation at 2.75%. Indias Cash Reserve Ratio (CRR) stood at 3.0% as of April 2026, indicating a stable liquidity stance by the Reserve Bank of India. The current setting reflects a relatively accommodative liquidity environment, aimed at supporting credit flow while maintaining overall financial stability.

IIP growth was at 4.1% in March 2026, with all three sectors i.e mining, manufacturing and electricity showing moderate growth. Manufacturing remained the key driver, supported by metals, automobiles and cement-related segments.

The Union Budget 2026–27 pegs total government expenditure at 53.5 lakh crore, reflecting a continued push on growth alongside fiscal discipline. A key highlight is the strong focus on public capital expenditure (12.2 lakh crore in FY26-27), including spending on infrastructure such as roads, railways, defence and urban development.

In the context of the ongoing West Asia crisis, the Indian economy continues to encounter notable external headwinds like oil price volatility, supply chain disruptions, currency depreciation and financial market volatility. A prolonged continuation of these developments may have a sustained impact over the course of FY 2026-27, potentially influencing macroeconomic stability, cost structures, and overall business sentiment.

FAST MOVING CONSUMER GOODS – INDUSTRY OVERVIEW

Indias FMCG sector continues to evolve in a crowded and competitive market, spanning both essential and discretionary products. The landscape includes large domestic players, MNCs, regional brands and a fast-growing D2C segment, making it dynamic and constantly shifting.

The sector delivered a moderate but resilient growth in FY 2025-26 supported by rural recovery driving momentum. Modern trade / e-commerce (including quick commerce) remained key growth drivers. Overall, the year reflected a stable recovery phase with improving demand fundamentals but intermittent consumption softness, especially in volumes toward the latter part of the year. The FMCG sector is expected to remain on a gradual recovery path in FY 2026-27, supported by improving domestic consumption dynamics; however, the outlook is tempered by an increasingly uncertain global macro environment.

Persistent geopolitical tensions in West Asia and associated volatility in crude oil prices pose a key external risk, with potential spill overs into inflation, input costs, currency volatility and household discretionary spending. This could intermittently disrupt both rural and urban demand recovery, as rising consumer goods prices weigh on purchasing power.

Notwithstanding these headwinds, the medium-term demand outlook remains underpinned on the rural demand revival, a normal monsoon, growth acceleration in modern trade / ecommerce channels and GST rationalization measures initiated in the last fiscal.

THE BUSINESS

Eveready Industries India Limited is a household name in dry cell batteries as well as flashlights, with an emerging and expanding presence in lighting and electrical products. With a legacy of over 100 years, the Company has consistently enhanced the quality of life of Indian consumers with innovative, portable energy and lighting solutions.

Eveready is home to Indias well-loved consumer brands. Within batteries, the Company offers products under the Eveready, Ultima, PowerCell, Shakti and Uniross Brands names. The Companys flashlights are sold under Eveready and PowerCell. Within the lighting business, the Company uses the Eveready and PowerCell brands. Across each of its segments, the Company offers a diversified portfolio of SKUs meeting a wide assortment of consumer requirements.

The Company continues to command a dominant market share of over 50% in the Indian dry cell battery market, a position built on decades of consumer trust, unmatched distribution depth and sustained product innovation. Batteries continue to constitute the majority of the Companys sales, with lighting and flashlights contributing materially to the overall revenue mix. A landmark milestone for FY 2026 has been the commissioning of the greenfield alkaline battery manufacturing facility at Jammu, a strategic initiative undertaken under the Make in India programme and Atmanirbhar Bharat vision. Evereadys new manufacturing plant, set up with an investment of approximately 200 crore, boasts of a robust annual peak production capacity of approximately 360 million alkaline batteries with an annual installed capacity of 456 million. The facility will help reduce import dependence, enhance supply chain resilience and improve margin efficiencies. In addition to this, the facility will help your Company expand business through white labelling and serve domestic and various international markets. This initiative reinforces Evereadys ambition to emerge as a global player in the alkaline battery segment.

The recent mandate on BIS certification mark is a material shift for a historically fragmented low-quality flashlight market driving formalization and consolidation toward compliant branded players creating a structural opportunity for the Company to gain share and strengthen trust.

The Companys production facilities remain well-spread across the country with units at Matia, Lucknow, Haridwar, Maddur, Kolkata and Jammu. Each facility operates in conformance with internationally accepted production and quality metrics.

The Companys R&D facility at Kolkata, operating under the oversight of the Department of Scientific and Industrial Research (DSIR), Ministry of Science and Technology, Government of India, continues to drive product innovation across segments. The Company continues to invest in Research & Development, underscoring its strategic commitment to innovation, product advancement and long-term value creation.

BATTERIES Industry Overview

The Indian dry cell battery market, comprising carbon zinc, alkaline and rechargeable variants is estimated 4,000 Crore growing at a CAGR of 5% at retail value, with a volume consumption estimated at around 2.4 billion units as per A.C. Nielsen Report.

Carbon zinc batteries continue to form the backbone of the industry, typically retailed between 10 to 20, for AA and AAA sizes and between 35 to 50 for C and D sizes. The carbon zinc segment accounts for 90% of the overall market with the rest made up by the alkaline segment, which retails for 25 to 55. Alkaline batteries contribute about 10%.

Dry cell battery usage is broadly bifurcated based on the power requirements of end-use applications, reflecting a clear dual-usage dynamic. Low-drain devices such as remote controls, wall clocks, torches and basic alarms are efficiently served by carbon zinc batteries, given their modest energy consumption. In contrast, high-drain applications including digital cameras, advanced toys, streaming remotes, wireless peripherals, electronic locks, smart devices, and portable audio equipment are better suited to alkaline batteries, which deliver superior performance and sustained discharge under higher load conditions.

Alkaline battery penetration in India remains materially below developed markets, where it is the dominant standard. However, India is witnessing a structural shift from carbon zinc to alkaline, driven by rising incomes, urbanization and increasing adoption of high-drain electronic devices positioning the market for sustained premiumization over the medium term.

Performance Review

In Financial Year 2025-26, the batteries segment recorded revenues of 972 Crore reflecting a growth of 9.3% over 889.4 Crore in the Financial Year 2024-25.

Growth in the alkaline battery segment was driven by a focused expansion of distribution reach, stronger consumer engagement and sharper more targeted communication enabling wider adoption across use-cases and markets. At the same time, an extensive distribution footprint and strong brand trust continued to drive the carbon zinc portfolio, particularly across mass and rural markets, further supported by calibrated price increases. Battery adjacencies, including mosquito swatters, scaled up meaningfully and contributed to overall performance, alongside the small-scale launch of power banks and chargers, which further expanded the product portfolio.

The commissioning of the greenfield alkaline battery manufacturing plant at Jammu during the year marks a major milestone for the segment. As a leading domestic manufacturer of alkaline batteries in India, Eveready is well positioned to capture growth in the rapidly growing alkaline sub-segment, with improved cost competitiveness.

Segmental EBITDA stood at 154.4 Crore in Financial Year 2025-26, compared with 139.2 Crore in Financial Year 2024-25. EBITDA margins are reported at 15.9% for the year compared to 15.6% in the prior period. Battery margin performance remained resilient and was broadly sustained at last years levels, despite continued headwinds from foreign exchange volatility and elevated raw material costs. To strengthen long-term brand equity and accelerate category growth, the Company stepped up targeted advertising and promotional investments.

Distribution, Branding and Market reach

The Company continues to maintain a best-in-class distribution network, further strengthened through focused brand building, sharper communication strategies and strategic channel expansion initiatives. The streamlining of distribution pathways has resulted in improved operational efficiency and a more agile distribution structure. Targeted incentive programs for channel partners including dealers and stockists, further strengthened engagement enabling wider market penetration and enhanced customer satisfaction. The Company continued to invest in a robust multi-platform communication strategy spanning television, digital and print media, strengthening brand visibility and deepening consumer connect across key segments.

The Companys products are present across an estimated 4.5+ million retail touchpoints nationwide with direct coverage of approximately 0.6 million outlets. Digital commerce channels, including e-commerce and q-commerce, are being actively developed to serve the growing segment of online consumers, particularly in Metro and Tier-1 and Tier-2 city markets.

Opportunities and Threats

India presents a substantial and under-penetrated market for dry cell battery consumption. Per capita battery consumption in India remains significantly below global benchmarks, with notable headroom for growth driven by the proliferation of portable devices, rising consumer electronics penetration and increasing use of battery-operated toys, smart home devices and healthcare gadgets. Remote controls remain the single largest driver of battery consumption in India a segment with significant volume growth potential as the smart TV and streaming device market expands.

The brand commands strong consumer affinity, anchored in a longstanding reputation for reliability, consistent product excellence, and a deeply entrenched nationwide distribution footprint ensuring superior accessibility. These inherent strengths underpin consistent demand momentum across both urban and rural markets, supporting broad-based consumption and market stability.

As part of its strategic portfolio transformation, the Company has refreshed its offering through a renewed communication platform, strengthening its play in the Alkaline segment. The Ultima Pro and Ultima range have gained strong market traction and are well positioned to emerge as key growth engines going forward. Leveraging its expansive retail footprint and strong brand equity, the Company is focused on unlocking incremental demand in this segment. A gradual shift in consumer behaviour towards lower and more selective usage of battery-powered devices may exert mild pressure on portable battery consumption, though the downside risk is expected to remain limited. At the same time, the ongoing expansion of new-age applications and the emergence of incremental use-cases for battery consumption are expected to act as a structural tailwind, effectively offsetting potential downside risks and supporting a resilient demand trajectory over the medium term.

The India Alkaline Battery market is estimated to grow at 24%. Evereadys first-mover advantage in domestic alkaline manufacturing, anchored by the Jammu facility, provides a significant strategic edge, strengthening supply chain control, cost competitiveness and long-term market positioning

Risks and Concerns

The Companys battery business remains sensitive to fluctuations in key input commodities such as zinc and other raw materials, as well as foreign exchange volatility, given a certain degree of import dependence. While pricing actions provide partial mitigation, competitive intensity and consumer price sensitivity may limit full pass-through, thereby posing a potential impact on margins. The Company continues to draw on its strong brand equity, deep distribution partnerships and operating scale to effectively navigate these risks. In addition, disciplined risk management practices, including proactive hedging and diversified sourcing, further strengthen resilience against raw material and input cost volatility.

FLASHLIGHTS Industry Overview

The India flashlight market is estimated to be around 1200 Crore at retail level. The flashlight market has historically seen a strong presence from the unorganized segment. However, the Company has consistently maintained a leadership position in the battery-powered category, underpinned by its brand strength, product reliability and extensive distribution reach. Traditionally led by battery-powered models, the market has seen a meaningful shift in consumer preference towards rechargeable flashlights owing to their cost efficiency, environmental benefits and improved product features including higher lumen output, longer runtimes and multi-mode functionality.

The rechargeable segment within flashlights has emerged as the key growth driver, gaining traction across household, industrial and outdoor use cases. This market transition has created significant opportunities for branded players with the capability to offer a comprehensive rechargeable product range. Deepening penetration of flashlights across Rural and Tier 2 & 3 markets represents a significant growth opportunity for the Company, driven by evolving consumer needs, improving affordability and increasing demand for reliable lighting solutions. Leveraging its extensive distribution network, strong retail reach and trusted brand equity, the Company is well positioned to drive adoption, enhance accessibility and unlock incremental volume growth in this segment.

The recent mandate of Indian Standard IS 2023:2024 and the BIS Standard Mark is expected to drive formalization within the flashlight category, accelerating a shift towards quality-compliant, branded offerings. This regulatory move is likely to catalyze market consolidation in favour of established players, creating a structural growth opportunity for the Company to strengthen its market share and reinforce consumer trust.

The Company has proactively augmented its production capacity to ensure sufficient headroom for addressing incremental demand. With the industry likely to transition towards a more organised structure following the implementation of these norms, the Company is well-positioned to capitalise on emerging growth opportunities and strengthen its market leadership.

Performance Review

In Financial Year 2025-26, the flashlights segment reported revenues of 179.7 Crore, 3.1% higher than last year. The segment EBITDA stood at 10.6 Crore with margin at 5.9%, against 12.4 Crore in the previous year.

The gradual shift from battery-operated to rechargeable products continued to influence the business trajectory with the rechargeable portfolio steadily emerging as an important contributor to overall growth. The Companys sustained pipeline of feature-rich, consumer-centric products, spanning a range of price points and end-use applications continues to find traction with both retail consumers and institutional buyers.

The full operationalisation of BIS Quality Control norms is expected to provide a structural tailwind by reducing unorganised competition and reinforcing consumer preference for quality, compliant products. Backed by its strong brand equity, commitment to product quality and continued innovation through feature-rich offerings, the Company is well-positioned to capitalise on this favourable regulatory and demand environment.

Opportunities and Threats

Per capita flashlight penetration in India remains low, highlighting a significant untapped opportunity. While reliable power supply kept urban demand muted, growing outdoor and recreational lifestyles are opening up new use cases. In smaller towns and cities, recurring power outages continue to sustain demand for dependable lighting solutions. In rural regions, flashlights remain an essential everyday utility, enabling mobility and supporting routine activities after sunset.

In response to evolving market dynamics, the Company is focused on innovation, superior quality and a balanced mix of premiumization. Reflecting this strategy, it continues to expand a strong product pipeline carefully designed around evolving consumer needs. Innovation is expected to serve as a key growth driver for the category, enabling the development of more efficient, durable and user-centric solutions. In line with the rising adoption of rechargeable products, the Company is strengthening consumer engagement through improved communication initiatives, aimed at building deeper and more sustained customer relationships.

Strengthening regulatory standards, including BIS compliance requirements, are expected to act as a structural tailwind for the category and creating a more level playing field that favours quality-compliant and established branded players.

A key competitive challenge continues to be the prevalence of low-cost, substandard products from the unorganised sector. While the BIS Quality Control Order is expected to structurally address this over time, the Company remains vigilant and continues to articulate its value proposition, quality, reliability, innovation and after-sales support to differentiate its offering.

Risks and Concerns

The flashlight category continues to face structural pressure from a large unorganised segment, resulting in market fragmentation and persistent price competition, with consumers often prioritising price over product quality and features. Despite this, the Company remains confident in the enduring strength of the Eveready brand, which is synonymous with quality and reliability, reinforcing the importance of brand equity, product differentiation, and disciplined channel management for sustained value creation.

The flashlight category in India remains exposed to the risk of low-cost, sub-standard imports and erosion of quality benchmarks. This underscores the importance of regulatory enforcement and strengthens the competitive advantage of established, quality-compliant branded players.

The Company continues to run targeted communication campaigns to strengthen consumer engagement, clearly communicate product benefits and increase awareness of the long-term value offered particularly versus lower-cost alternatives in the unorganized market.

LIGHTING AND ELECTRICAL PRODUCTS Industry Overview

The Indian lighting market is now largely LED-led, driven by the growing emphasis on energy efficiency. In this evolving landscape, the Company has established a well-rounded and competitive product portfolio with strong market positioning. Its products are widely available across general trade, modern retail and electrical channel outlets. The Company follows a dual distribution approach, leveraging both its general trade network and dedicated electrical outlets division to effectively serve demand.

The Company is continuously enhancing its capabilities in the electrical outlet division to enable the rollout of differentiated product offerings. In alternative channels such as modern trade, e-commerce, quick commerce, and professional luminaires, there is a clear focus on increasing the share of value-added products in the portfolio.

At the same time, the business is steadily scaling its presence in the institutional segment which presents attractive growth opportunities. The luminaires segment encompassing downlights, panel lights, floodlights and architectural lighting is witnessing the fastest value growth, driven by commercial real estate expansion, hospitality sector activity and the trend towards application-specific lighting.

The electrical accessories segment continues to receive an encouraging response and is effectively strengthening the Companys portfolio by enabling a cross-category presence across retail outlets.

After a sustained period of value decline, the lighting category in India has now stabilized, allowing for a gradual return to value-led growth.

Performance Review

In Financial Year 2025-26, the Lighting and Electrical Products segment reported revenues of 340.9 Crore relative to 315.6 Crore in the last year. The segment achieved break even at an EBITDA level during the year. The Company continues to pursue a balanced and multi-channel distribution strategy, strengthening its presence across both general trade and electrical outlets while expanding into modern trade and e-commerce platforms. This dual-channel approach enhances market coverage and improves accessibility across diverse consumer touchpoints. The growing contribution from alternate channels is enabling deeper market penetration, improved visibility and a more resilient route to market.

The Companys entry into new product segments such as MCBs and wires along with a wide range of electrical accessories has strengthened its portfolio and contributed to incremental volume growth. These additions reflect a calibrated expansion into adjacent categories, leveraging existing distribution strengths and brand equity. The continued focus on building a broader, integrated product portfolio positions the Company to capture emerging opportunities while enhancing its relevance across a wider set of consumer and channel requirements.

Opportunities and Threats

Indias urban expansion, smart city investments and the continuing electrification of rural infrastructure present a long-term structural growth opportunity for LED lighting. Commercial real estate, hospitality, retail and residential construction are expected to sustain demand for a broad range of indoor and outdoor lighting solutions. The institutional segment, including government, educational and healthcare infrastructure offers consistent procurement opportunities for quality-certified, energy-efficient LED products. The Governments continued emphasis on energy conservation through LED promotion, tightened standards for commercial and public procurement and state-level ECBC implementation provide a sustained policy tailwind. The markets low barriers to entry continue to attract new players with competitive pricing strategies. Competition from low-cost unorganized players remains a structural challenge for the category, leading to persistent pricing pressure and market fragmentation. This competitive intensity, while persistent, is partially offset by the brand strength and distribution network that Eveready commands.

Limited pricing power in a highly competitive and price-sensitive market environment presents an ongoing risk to margin sustainability, as the Companys ability to fully pass through input cost increases remains constrained. The Company maintains proactive vigilance on the pricing environment, enabling timely and calibrated pricing actions, while continuously balancing competitiveness with margin protection through close monitoring of market dynamics and disciplined portfolio management.

Risks and Concerns

Sustained success in the lighting and electricals segment depends on continuous innovation and high product quality. A key risk is the inability to anticipate or respond quickly to changing consumer preferences, which could lead to a loss of market relevance.

To address this, the Company has established a product development framework focused on launching offerings to drive consumer interest and sustain brand engagement. In addition, the Companys strategic emphasis on broadening its SKU portfolio – particularly by deepening presence in the luminaires segment and expanding distribution reach – is expected to enhance resilience and support sustained growth

KEY FINANCIAL RATIOS

Details of significant changes in key financial ratios:

Key Financial Ratios	FY 2025-26	FY 2024-25	Change (%)	Reasons
Current ratio (Number of times)	1.3	1.3	1%	NA
Debt Equity ratio (Number of times)	0.3	0.7	-52%	Repayment of debt
Debtors Turnover (Number of times)	13.1	12.3	6%	NA
Interest coverage ratio (Number of times)	8.4	5.4	55%	Due to lower interest cost
Inventory Turnover (Number of times)	2.8	2.7	2%	NA
Net profit margin (%)	11.9	6.1	93%	Higher net profit
Operating profit margin (%)	11.2	11.3	1%	NA
Return on Net Worth (%)	31.8	19.6	62%	Higher net profit

INFORMATION TECHNOLOGY

The Company continues to strengthen its Information Technology capabilities as a key enabler of operational efficiency and data-driven decision making. With robust integrated systems and continuously upgraded processes, the IT landscape remains agile and resilient.

The Company has successfully completed two years of SAP implementation, with the platform now fully embedded and delivering on intended business outcomes. In addition, established SFA (Sales Force Automation) and DMS (Distribution Management System) platforms continue to enhance sales execution, drive operational efficiencies and enable more informed, data-driven decision making across the organization.

The company is increasingly embedding AI across multiple functions, complemented by IoT-enabled systems and robotics-driven manufacturing processes. This integrated digital and automation agenda is driving a step-change in the deployment and intensity of information technology across the organization, enhancing operational efficiency, precision and scalability. During the year, the Company revamped its website, making it future-ready while modernising the digital presence of its heritage brand.

INTERNAL CONTROL AND SYSTEMS

The Company has established a robust internal control framework aligned with the scale and complexity of its operations, enabling efficient resource utilization, reliable financial reporting and regulatory compliance. This is supported by well-defined processes, structured authorization protocols, clear accountability for asset custody and strong system-driven controls embedded at the transaction level.

The Company has a comprehensive and well-articulated Risk Management Framework in place to proactively identify, evaluate and mitigate risks across its operations, financial performance and strategic priorities and continues to further strengthen and enhance it on an ongoing basis. Risk management is embedded across the organization and governed by a structured policy framework aligned with best-in-class corporate governance practices. Key risks, including market volatility, regulatory changes, cybersecurity and operational disruptions are continuously tracked through robust monitoring mechanisms and internal controls. Regular reviews by the Board and the Risk Management Committee enable informed oversight and reinforce a strong culture of risk awareness, supporting resilience and long-term sustainability in a dynamic business environment.

The Company is strengthening its governance and compliance architecture with an increased focus on evolving regulatory and disclosure requirements, including BRSR, ESG and the DPDP framework among other emerging mandates. This reflects a more structured and forward-looking approach to sustainability, data governance and responsible business practices aligned with global best standards.

HUMAN RESOURCES

The Company recognises that its people are fundamental to its continued success. Evereadys human capital is characterised by depth of domain expertise, institutional knowledge, and a shared commitment to excellence. During FY 2025-26, employee–management relations at the Company remained constructive and stable. The human resource framework continues to emphasize merit-based recognition and a performance-driven culture, supported by focused capability-building and skill enhancement initiatives. These efforts reinforce employee engagement and strengthen overall organizational effectiveness.

The Company has introduced an ESOP framework as a strategic initiative to strengthen senior leadership engagement and align long-term value creation with employee ownership. This initiative is expected to support retention of key talent while fostering deeper commitment to the Companys long-term strategic objectives.

The Company also secured a strong 90% score in the Pulse survey, conducted to assess employee engagement and understand the overall experience of working at Eveready.

OUTLOOK

The Company expects battery demand to gradually stabilize over the medium to long term, supported by underlying category stability. The alkaline segment is anticipated to remain the primary growth driver, aided by rising penetration, expanding usage, and the continued traction of the revamped Ultima portfolio. Ongoing initiatives to strengthen marketing effectiveness and deepen distribution reach are expected to further support demand generation. The Company is actively advancing key strategic initiatives, including the successful scale-up of its alkaline business supported by localization-led manufacturing advantages, along with accelerated focus on new product development and other growth-enabling programs. Sustained and focused consumer communication continues to play a central role in maintaining brand visibility and relevance across markets. As consumption trends strengthen, the Company is well positioned to leverage its strong brand equity and extensive distribution network to drive future growth.

Leveraging its strong product portfolio, trusted brand equity, and extensive distribution network, the Company is well placed to capture incremental share in the flashlight category. A key focus area remains the gradual shift towards rechargeable offerings, which are increasingly gaining relevance as consumer preferences evolve away from traditional battery-operated formats. This transition provides an opportunity for the Company to further strengthen its presence and participate in the evolving market landscape. The BIS-led regulatory tailwind is expected to support consolidation in favour of organised players and contribute to improved demand conditions for the Company. The Company continues to strengthen its position through strategic portfolio expansion anchored around its core categories. Our Mosquito Swatter range is a strong reflection of this ambition. Within just two years of launch, we have emerged as a leader in the urban organized market, a milestone that underscores both the strength of our execution and the scale of consumer trust we have earned.

Looking ahead, the Company is actively pursuing opportunities in adjacent spaces that align with our defining theme of Power and Portability. Taking this vision forward, we launched Power Banks and Chargers this year, expanding our footprint beyond our traditional categories.

The Company continues to see meaningful potential in the lighting and electrical products segment and is steadily expanding its product offering. The lighting portfolio now enjoys wide availability across general trade as well as specialized electrical outlets, reinforcing the Companys competitive positioning. Going forward, emphasis remains on deepening penetration in smaller towns while strengthening presence in metro markets through modern trade and retail partnerships, alongside a continued focus on the institutional segment to drive balanced growth.

The year also marked the launch of a strategic initiative – Project UDAAN looking to explore untapped opportunities with a sharp focus to strengthen reach and further build on to the distribution backbone and unlock growth across the general trade and electrical outlet channels.

Stabilization of the Jammu alkaline battery facility remains a key priority from an operational and strategic standpoint. As the facility progressively stabilizes, it is expected to play an increasingly important role in strengthening supply reliability and supporting the Companys long-term growth plans in the alkaline category. The Company remains focused on identifying manufacturing optimisation opportunities to leverage best cost structures and enhance efficiency across its production network.

CAUTIONARY STATEMENT

This Management Discussion and Analysis Report contains forward-looking statements, including projections, assumptions and expectations that are made in good faith and based on information available at the time of preparation. Actual results may differ materially from those expressed or implied due to a variety of external and internal factors, including but not limited to changes in market conditions, macroeconomic developments, regulatory policy changes, input cost fluctuations, competitive dynamics, and other factors beyond the Companys control.

Additionally, market insights and product-related data presented in this report have been sourced from both published and unpublished materials. While care has been taken to ensure the accuracy and reliability of this information, its completeness and precision cannot be fully guaranteed. Readers are therefore advised to exercise their own judgment while interpreting the forward-looking information contained herein.