Global Pet Industries Ltd Management Discussions

ANNEXURE B

1. ECONOMIC OVERVIEW

Global Economy

Calendar year 2025 and the first half of 2026 have seen the world economy hold a steady, if unspectacular, course. Growth in the advanced economies has remained modest and uneven, while a large share of incremental global demand has continued to originate from Asia. Inflationary pressures that dominated policy discussions over the preceding few years have eased in most large economies, giving central banks greater room to calibrate interest rates in support of growth. At the same time, global supply chains continue to be reshaped by tariff actions and a broad-based push by manufacturers to diversify sourcing away from single-country dependence. For capital goods manufacturers such as your Company, this realignment has opened opportunities, as global bottlers and packaging convertors increasingly look to a wider set of equipment suppliers, including those based in India, to de-risk their supply chains and shorten lead times.

Indian Economy

India remained one of the fastest growing major economies through FY 2025-26, with national income estimates placing real GDP growth for the year in the region of 7.5% to 7.7%, ahead of the pace recorded in FY 2024-25. The expansion was broad-based, with manufacturing and construction within the secondary sector recording healthy growth and services continuing to be the largest single contributor to output. Softening wholesale inflation, resilient rural and urban consumption, sustained government capital expenditure and steadily improving industrial production readings through the year created a supportive backdrop for capital-goods investment by end-user industries such as food, beverages, pharmaceuticals and personal care - the principal consuming sectors for the Companys products. Continuing reforms to indirect taxation, formalization of the economy and steady credit availability to micro, small and medium enterprises have also supported capacity creation among the packaging and bottling units that make up a large part of the Companys customer base.

2. INDUSTRY STRUCTURE AND DEVELOPMENTS

The Global PET Packaging Machinery Industry

PET remains the preferred material for rigid packaging across beverages, edible oil, pharmaceuticals, and personal/home care products, owing to its light weight, transparency, shatter resistance and recyclability. Market estimates for PET stretch blow molding machinery vary by source, but the trend is consistent: demand is shifting toward automated, high-speed, energy-efficient multi-cavity machines, beverages remain the largest end-use segment, and Asia-Pacific leads growth on the back of expanding bottling capacity. Growth is driven by glass-to-PET substitution, rising beverage capacity in developing markets, and replacement of older equipment with all-electric servo machines; semi- automatic machines still dominate by volume, while automatic and all-electric platforms dominate by value. Three themes are shaping the industry ? energy efficiency (all-electric drives, better preform heating, heat recovery), rPET compatibility (as brands adopt recycled-content targets), and digitalization (IoT, remote diagnostics, predictive maintenance). Challenges include low-cost import competition, price-sensitive smaller converters, capex cyclicality, and tightening plastic-waste regulation ? though the Company views circular-economy policies (EPR, recycled-content mandates, single-use restrictions) as net supportive of demand for modern, rPET-capable, light weighting machinery.

The Domestic Market

India remains among the faster-growing PET packaging markets, driving demand for bottle blowing machinery. Growth is supported by rising packaged water and beverage consumption, the shift of edible oil and dairy packaging to PET, expansion of organized retail and quick-commerce, growth in pharma/nutraceutical packaging, and a steady upgrade cycle from manual/semi-automatic to automatic lines. Demand is geographically dispersed, with a large share from small and mid-sized bottlers in tier-2/3 locations who prioritize reliability, affordability, quick installation and after-sales service over headline specifications. The domestic industry is fragmented, with multinational suppliers, established Indian manufacturers and regional players competing on price, delivery and total cost of ownership ? while Indias cost-competitive engineering base is also opening export opportunities in the Middle East, Africa and South-East Asia. Regulations such as the Plastic Waste Management Rules, EPR recycled-content obligations, and food-contact approvals for rPET are steering the market toward machinery built for rPET processing and light weighting, a direction the Companys product development is aligned with.

Positioning of the Company

Global Pet Industries Limited designs and manufactures PET stretch blow molding machines that convert PET preforms into finished containers ranging in capacity from 50 ml to 20 liters. The Companys machines find application across a wide spread of end-uses, including packaged drinking water and mineral water bottles, carbonated soft drink and hot-fill juice bottles, edible oil containers, liquid detergent and personal care bottles, confectionery jars, pharmaceutical containers, and bottles for the liquor, distillery and agro-chemical segments. This diversity of end-use application reduces the Companys dependence on any single consuming industry and allows it to participate in demand emanating from several distinct segments of the broader PET packaging economy.

3. ABOUT GLOBAL PET INDUSTRIES LIMITED

BUSINESS OVERVIEW

Global Pet Industries Limited (CIN: L29253MH2013PLC246402) was originally incorporated as Global Pet Industries Private Limited on July 30, 2013 and was converted into a public limited company in April 2023, ahead of its listing on the SME platform of the stock exchange following an Initial Public Offer completed in July 2023. The Company operates from two manufacturing units located at Village Waliv, Dhumal Nagar, Vasai, in the Palghar district of Maharashtra, where it carries out the entire manufacturing process - from procurement and machining of components to assembly, testing and dispatch of finished machines. Alongside the sale of new machines, the Company earns revenue from the supply of spares, components and accessories, and from installation and maintenance services to its installed customer base, providing a degree of recurring, annuity-like revenue alongside its core capital-goods business. The Company continues to operate in a single reportable business segment, being the manufacture, sale and servicing of PET stretch blow molding machines and related capital goods.

4. FINANCIAL PERFORMANCE

The discussion below is based on the standalone audited financial statements of the Company for the year ended March 31, 2026, prepared in accordance with the applicable Indian Accounting Standards, and should be read together with those financial statements and the notes forming part thereof.

Statement of Profit and Loss

(Rs. In Lakhs Except EPS)

Particulars	2025-2026	2025-2024	Growth (%)
Revenue from Operations	5,557.45	4,494.29	23.66%
Other Income	183.45	119.31	53.76%
Total Income	5,740.90	4,613.60	24.44%
Total Expenditure	5,040.65	4,065.83	23.98%
Profit before Prior Period Item & tax	700.25	547.77	27.84%
Prior period Profit	23.85	-	-
Profit Before Tax	724.10	547.77	32.20%
Total Tax Expense	194.25	120.25	61.52%
Profit for the Year	529.86	427.51	23.94%
Earnings Per Share- Basic & Diluted	4.50	4.05	11.11%

Revenue from operations grew 23.66% year-on-year to Rs. 5,557.45 Lakhs, driven by a broad-based increase in domestic demand as well as a sharp step-up in export sales. Sales of products in the domestic market rose from Rs. 3,964.98 Lakhs to Rs. 4,715.42 Lakhs, an increase of 18.93%, while export sales more than one-and-a-half times over, growing 64.01% from Rs. 494.94 Lakhs to Rs. 811.70 Lakhs. As a result, exports increased their share of total revenue from operations from around 11.0% in FY 2024-25 to about 14.6% in FY 2025-26, reflecting the Companys efforts to widen its addressable market beyond India.

Profit before prior period item and tax increased at a faster pace than revenue, up 27.84% to Rs. 700.25 Lakhs, aided by better absorption of fixed costs over a larger revenue base even as the Company continued to invest in employee costs and other overheads to support its growth. During the year, the Company also recognized prior period income of Rs. 23.85 Lakhs on account of a correction in the accounting treatment of preliminary expenses relating to its Initial Public Offer, which has since been adjusted against the Securities Premium Account in accordance with Section 52 of the Companies Act, 2013. After providing for current, earlier-year and deferred tax aggregating Rs. 194.25 Lakhs, profit for the year rose 23.94% to Rs. 529.86 Lakhs, compared with Rs. 427.51 Lakhs in the previous year. Basic and diluted earnings per share improved to Rs. 4.50 from Rs. 4.05, an increase of 11.11%; the increase in EPS is proportionately lower than the increase in net profit as the current year reflects earnings on the Companys enlarged post-preferential-allotment equity base for the entire twelve-month period, whereas the comparative year carried this higher share count for only part of the year.

Balance Sheet

(Rs. in Lakhs)

Particulars	As at 31.03.2026	As at 31.03.2025	Growth (%)
Shareholders Funds (Net Worth)	5,522.54	5,051.74	9.32%
Non-Current Liabilities	116.30	82.21	41.46%
Current Liabilities	1,372.22	975.37	40.69%
Total Equity and Liabilities	7,011.06	6,109.32	14.76%
Non-Current Assets (incl. Capital WIP)	2,348.88	1,503.79	56.20%
of which: Capital Work-in-Progress	1,772.88	1,123.87	57.75%
Inventories	1,403.15	1,511.01	-7.14%
Trade Receivables	150.77	122.55	23.03%
Cash and Cash Equivalents	2,898.32	2,690.84	7.71%
Total Assets	7,011.06	6,109.32	14.76%

The Companys balance sheet strengthened further during the year, with net worth increasing 9.32% to Rs. 5,522.54 Lakhs on the back of internal accruals, the Company having raised no fresh equity during the year. The Company continues to be debt-free, with no long-term or short-term borrowings on its books, a position it has maintained through both years under review. The most notable movement on the assets side is the 57.75% increase in Capital Work-in-Progress to Rs. 1,772.88 Lakhs, reflecting ongoing investment in construction of additional manufacturing infrastructure and machinery, discussed further below. Current liabilities rose 40.69%, mainly on account of higher trade payables and advances received from customers, both of which are a natural corollary of the higher scale of operations and order inflow during the year. The Companys cash and bank balances remain strong at Rs. 2,898.32 Lakhs, underscoring a comfortable liquidity position even as the Company continues to fund its capacity expansion substantially from internal resources.

5. KEY FINANCIAL RATIOS

In accordance with the applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the table below sets out the Companys key financial ratios for the year, along with the corresponding previous year figures and percentage variance.

Key Ratios	Financial Year 2025- 2026	Financial Year 2024- 2025	Variance (%)
Debtors Turnover	40.67	32.44	25.35
Inventory Turnover	3.81	3.34	14.18
Interest Coverage Ratio	-	-	-
Current Ratio	3.40	4.72	-28.05
Debt Equity Ratio	-	-	-
Operating Profit Margin	9.88%	11.19%	-11.67%
Net Profit Margin	9.53%	9.51%	0.23%
Return on Net Worth	9.59%	8.46%	13.37%

Remarks for Change in Ratios having more than 25% variance: Variance is due to increase in inventory, efficient collection and strong cash flow, improved operational efficiency and effective cost management.

6. SEGMENT WISE OR PRODUCT WISE PERFORMANCE

The Company continues to operate in a single reportable business and product segment, namely the manufacture, sale and servicing of PET stretch blow moulding machines. Within this single segment, the Company tracks its performance across the domestic and export markets, both of which recorded growth during the year, with exports growing at a materially faster rate and thereby improving the geographic diversification of the Companys revenue base. Revenue from after-sales services, spares and accessories, while a smaller proportion of total revenue, continued to provide a steady, relationship-driven income stream linked to the Companys growing installed base of machines in the field.

7. OPPORTUNITIES AND GROWTH DRIVERS

• Rising consumption of packaged water, beverages and edible oil in India, together with the continued shift of unorganised bottlers towards branded, packaged formats, supports steady replacement and new demand for blow-moulding machinery.

• Increasing global emphasis on recyclable, lightweight packaging is driving replacement of older machines with new-generation equipment capable of handling recycled PET and thinner-walled bottle designs, creating a natural upgrade cycle for existing customers.

• Growing acceptance of Indian-made capital goods among overseas buyers, supported by competitive pricing and improving product quality, gives the Company room to build on the strong growth already seen in its export sales during the year.

• The Companys ongoing capacity expansion, once commissioned, is expected to enable it to service larger and more complex orders and to shorten delivery lead times, both of which are important competitive parameters in this industry.

• A diversified end-use base spanning beverages, edible oil, pharmaceuticals, personal care and agro-chemicals reduces the Companys dependence on the fortunes of any single consuming industry.

8. THREATS, RISKS AND CONCERNS

Risk is inherent to every business, and the Companys management continuously seeks to balance risk and reward across its operations. The more significant risks and challenges facing the Companys business are set out below.

• Competitive intensity: The blow-moulding machinery industry is fragmented and price- competitive, with both established Indian manufacturers and larger multinational suppliers vying for the same customer base; sustained investment in product quality, service and delivery reliability is necessary to protect margins.

• Input cost volatility: The cost of steel, electronic and electrical components, and other engineering inputs used in machine manufacture can be volatile, and any sharp or sustained increase that cannot be passed through to customers could affect margins.

• Customer concentration and order-book cyclicality: As a capital-goods manufacturer, the Companys revenue is linked to the capital expenditure cycles of its bottling and packaging customers, and any slowdown in such capex - whether due to macroeconomic conditions or sector-specific factors - could affect order inflow.

• Execution risk on capacity expansion: Timely completion and commissioning of the ongoing capital expenditure programme is important to realising the anticipated capacity and efficiency benefits; delays in construction, statutory approvals or equipment delivery could push out these benefits.

• Regulatory and trade-policy risk: Changes in import/export duties, environmental regulations governing plastics and packaging, or other regulatory developments in India or in the Companys export markets could affect demand patterns or cost structures.

• Talent and skilled manpower: Availability of skilled engineering and shop-floor talent is important to sustaining quality and delivery timelines as the Company scales its operations.

9. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company maintains a system of internal financial controls commensurate with the size and nature of its operations, supported by documented policies, a defined authority matrix and a well-understood organizational structure. These controls are designed to safeguard the Companys assets, ensure the reliability of financial reporting, and promote compliance with internal policies as well as applicable laws and regulations. The internal control framework is periodically tested through internal audits carried out during the year, the findings of which are reviewed by the Audit Committee, with corrective action tracked to closure. The Statutory Auditors have, in the course of their audit of the financial statements for the year, also evaluated the design and operating effectiveness of the Companys internal financial controls over financial reporting.

10. HUMAN RESOURCES

The Company believes that human capital plays a crucial role in business growth. Its talented and dedicated employee base has enabled the Company to pursue its strategic goals. The Companys human resource policies are employee-friendly and are directed at nurturing a safe, conducive and productive work environment, which supports sustainable business growth, high productivity, employee satisfaction and retention.

The Company is committed to being an equal opportunity employer and follows a policy of non- discrimination in all its practices. Employees at all levels are provided with learning opportunities appropriate to their role and focus area. As on March 31, 2026, the Company had a total headcount of 128 employees, comprising 116 male employees and 12 female employees, as against 112 employees in the previous year. The addition to headcount during the year reflects the strengthening of the Companys engineering, production, service and compliance functions in anticipation of the increase in scale following the commissioning of the new manufacturing facility.

Employee benefits expense for the year stood at Rs. 806.89 Lakhs as against Rs. 696.81 Lakhs in the previous year. The Companys contribution to provident fund and employees state insurance during the year aggregated Rs. 24.20 Lakhs, and the liability for gratuity is determined on the basis of an independent actuarial valuation and is funded. The Company has in place a Policy on Prevention, Prohibition and Redressal of Sexual Harassment at Workplace and an Internal Complaints Committee; no complaint was received during the year under review. Industrial relations remained cordial throughout the year.

The Directors wish to place on record their appreciation of the efforts, dedication and contribution made by employees at all levels during the year under review.

11. CORPORATE SOCIAL RESPONSIBILITY

The provisions of Section 135 of the Companies Act, 2013 are applicable to the Company. Based on the average net profit of the Company for the three immediately preceding financial years, the prescribed corporate social responsibility expenditure for the year was Rs. 7.34 Lakhs, against which the Company spent Rs. 7.40 Lakhs during the year under review. The expenditure was applied in the local area towards the promotion of education, healthcare and welfare through an implementing agency. There was no unspent amount for the year. The details of the Companys corporate social responsibility activities are set out in the Directors Report and the annexure thereto.

12.OUTLOOK

The Company enters FY 2026-27 with a healthy order book, a debt-free balance sheet, strong cash reserves and capacity-expansion projects in progress that are expected to be commissioned progressively over the coming periods. Management intends to continue building on the momentum seen in export sales during the year under review, while deepening its presence in the domestic market through its expanding product range and after-sales service network. The Company will also continue to evaluate opportunities to widen its addressable end-use segments and to invest selectively in technology upgrades that improve energy efficiency and support customers shift towards recycled and lighter-weight PET packaging. While the Company remains mindful of the risks set out above, the Board and management believe the Company is well positioned to sustain its growth trajectory.

13. CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates and expectations may constitute "forward-looking statements" within the meaning of applicable laws and regulations. Actual results could differ materially from those expressed or implied, depending on economic conditions, government policies, input costs, competitive dynamics and other factors beyond the Companys control. The Company undertakes no obligation to publicly update or revise any forward-looking statements, and readers are cautioned not to place undue reliance on them. This Report should be read in conjunction with the Companys audited financial statements and the notes forming part thereof for the year ended March 31, 2026.