GB Global Ltd Management Discussions

Pursuant to schedule V of the SEBI (LODR) Regulation, 2015, Management Discussion and Analysis Report form a part of the Annual Report of the Company. It indicates the Companys movement in the external environment Vis-a-Vis its own strengths and resources

Global Economy Overview

The IMF projects global growth at 3.0% for 2025, increasing slightly to 3.1% in 2026, reflecting improved financial conditions and tariff adjustments. Similarly, EY forecasts global GDP growth at 3.0% in 2025, down from 3.2% in 2024 with deceleration expected in 2026. In contrast, the World Bank delivers a more cautious outlook, projecting a slower 2.3% global growth in 2025, driven by lingering trade tensions and uncertainty. The OECD sits in the middle, expecting growth at 2.9% in 2025, down from 3.3% in 2024.

Trade frictions, protectionist policies, and elevated policy uncertainty continue to suppress global economic momentum.

Leading economies show mixed performance:

• China: Growth around 4.4-4.8% in 2025, slightly slower than previous year.

• India: Remains a strong performer with GDP growth estimated at 6.4-6.6% in 2025.

• U.S.: Growth ranges between 1.4% (World Bank) and 1.9% (IMF).

• Eurozone: Modest growth at 1.0%.

Global trade flows remain fragmented amid geopolitical tensions and strategic realignment, impacting supply chains.

Indian Economy Overview

Real GDP growth for FY 2024-25 stood at 6.5%, making India the fastest-growing major economy globally. In the fourth quarter (Q4), growth accelerated to 7.4%, driven by strong performances in agriculture and construction. Private consumption and investment demand showed resilience. Private consumption grew robustly. Gross fixed capital formation rose, particularly in Q4. Inflation was notably low. In May 2025, consumer price inflation dropped to 2.82%, marking the lowest level since February 2019. External headwinds. Indias economy faced pressure from 50% U.S. tariffs on exports, particularly impacting labor-intensive sectors like textiles. These tariffs could potentially shave off up to 1 percentage point from GDP growth over the medium term. Still, consumer sentiment remained strong, driven by low inflation and a resilient labor market & Policy responses and optimism. The government is actively pursuing tax reforms and stimulus to soften export shocks. Macroeconomic outlook remains optimistic, with growth projected to stay around 6.5% in FY 2025

Textile Industry — Economic Signals & Growth Dynamics:

Scale, Structure & Performance. The textile and apparel industry in India contributes about 2.3% of GDP, 13% of industrial production, and 10.5% of exports. Indias textile market size is forecasted to grow from USD 138 billion to USD 195 billion by 2025. Textile and apparel exports are projected to reach USD 65 billion by FY 2025-26. Apparel exporters are expected to deliver 9-11% revenue growth in FY 2024-25, supported by global sourcing shifts favoring India.

Government Initiatives & Support:

Budget allocation for textiles in FY 2024-25 surged by 28%, to ?4,417 crore (USD 530 million). Significant increases in funding for:

• PLI (Production-Linked Incentive) scheme (+800%),

• National Technical Textiles Mission (+100%),

• Handicrafts, handlooms, and skill development programmes.

• The MITRA scheme (Mega Integrated Textile Region & Apparel Parks) is being scaled to develop integrated value-chain parks and enhance competitiveness and sustainability in textiles.

• Circular fashion and sustainability are gaining traction, supported by government policies and initiatives that emphasize recycling, upcycling, and eco-friendly practices.

Key Challenges & Industry Dynamics:

The 50% U.S. tariffs pose a significant threat to textile exports, especially for states like Tamil Nadu that house major export hubs such as Tirupur—potentially risking ?3,000 crore and thousands of jobs. Analysts estimate Indias textile and other export sectors may see severely lowered earnings and demand as a result. Despite export headwinds, strong domestic consumption, low inflation, and government support are helping buffer some of the impact.

Growth opportunities remain robust:

• Technical textiles, PLI incentives, and circular fashion are new frontiers for expansion.

• Domestic demand, especially in infrastructure-linked segments, continues to sustain growth, even as exports face challenges.

Financial Performance and Analysis

(Rupees in Lakhs)

The revenue from operations of the Company has been recorded at ^19,122.10 lakhs from ^21,929.93 lakhs during FY25. The increase in the revenue from operations is on account of the Company new subsidiary as mentioned in the Director Report which boasted the revenue of the Company. A significant part of this turnaround was achieved through considerable cost savings.

The Company earns its major revenue from operations from Textile and Income earned from Job Work and also from Infrastructure segment. There is a significant increase in the PBT of the Company during FY24 amounting to Rs. 3,360.44 lakhs as compared to amounting to Rs. 2,615.16 lakhs.

Key Financial Ratios

The formulae used in the computation of the above ratios are as follows:

Cautionary Statement

Statements in the Management Discussion & Analysis report describing the Companys objectives, estimates or projections may be forward looking statements within the meaning of applicable securities law and regulations. Actual results may materially differ from those expressed or implied. Important factors that can make a difference to the Companys operations include change in the main clients purchase procedures, changes in Government regulations, tax regimes, economic outlook and other incidental factors. These statements have been based on current expectations and projections about future events. Wherever possible, all precautions have been taken to identify such statements by using words such as anticipate, estimate, expect, project, intend, plan, believe and words of similar substance in connection with any discussion of future performance. Such statements, however, involve known and unknown risks, significant changes in political and economic environment in India or key markets abroad, tax laws, litigation, labour relations, exchange rate fluctuations, interest and other costs and may cause actual results to differ materially. There is no certainty that these forward-looking statements will be realised, although due care has been taken in making these assumptions. There is no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

Appreciation

The Board of Directors place on record sincere gratitude and appreciation for all the employees of the Company. Our consistent growth was made possible by their hard work, solidarity, cooperation, and dedication during the year.

The Board conveys its appreciation for its customers, shareholders, suppliers as well as vendors, bankers, business associates, regulatory and government authorities for their continued support.