Guru Krupa Gems & Jewellery Ltd Management Discussions

For the Year Ended March 31, 2026 Pursuant to Regulation 34(2)(e) read with Schedule V (Part B) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

1. INDUSTRY STRUCTURE AND DEVELOPMENTS

(a) Industry Structure and Developments:

I. The Macroeconomic Environment Global Economy

Global economic activity demonstrated resilience through calendar year 2025 and into the early part of 2026, notwithstanding an environment marked by episodic trade policy shifts, elevated geopolitical uncertainty and a gradual normalisation of monetary policy across major economies. As per the International Monetary Funds (“IMF”) World Economic Outlook Update of January 2026, global output is estimated to have grown by approximately 3.3% in calendar year 2025, with growth projected to remain resilient at 3.3% in 2026 and 3.2% in 2027. This marks a modest upward revision from the IMFs October 2025 assessment, supported by continued technology-led investment, accommodative financial conditions, ffiscal and monetary support in several major jurisdictions, and the adaptability of the private sector to evolving trade conditions. Growth across advanced economies is projected at approximately 1.8% for 2026, with the United States expected to expand by around 2.4%, aided by ffiscal policy support, a lower policy rate environment, and the gradually diminishing impact of elevated trade tariffs introduced earlier in the cycle. The Euro area continues to face more subdued conditions, weighed down by structural headwinds in manufacturing and the lingering effects of elevated energy costs, while emerging market and developing economies, led by India, continue to outpace advanced economy growth rates by a wide margin. Global headline in lation has continued its gradual descent, though the pace of disin lation has varied meaningfully across geographies, with in lation in the United States remaining comparatively sticky relative to other major economies. Key downside risks to the global outlook identi ied by multilateral agencies include a possible re-evaluation of technology-sector valuations and investment expectations, renewed escalation of geopolitical tensions in the Middle East and Eastern Europe, and the possibility of further trade policy shifts that could disrupt global supply chains, capital lows and commodity markets developments of direct relevance to a gold and jewellery-linked business such as ours, given golds role as both a global commodity and a safe-haven investment asset.

Global and Indian GDP growth (Source: IMF World Economic Outlook, January 2026; Reserve Bank of India, February 2026 Monetary Policy Statement). India igures on a fiscal-year basis.

Indian Economy

India has continued to consolidate its position as the worlds fastest-growing major economy during FY 2025 26. The Reserve Bank of India (“RBI”), in its February 2026 monetary policy review, revised its GDP growth estimate for FY 2025 26 upward to 7.4%, from an earlier estimate of 7.3%, re lecting broad-based momentum across consumption, services and industrial activity. Indias real GDP grew by 8.2% in the September 2025 quarter the sharpest quarterly growth rate in six quarters following growth of 7.8% in the June 2025 quarter, underpinned by resilient rural and urban demand, softer crude oil prices, front-loaded government capital expenditure, and the consumption boost from GST rate rationalisation announced during the year. The IMF has similarly raised its FY 2025 26 growth forecast for India to 7.3%, while cautioning that growth is likely to moderate towards a more sustainable 6.4% range over the following two fiscal years as these cyclical tailwinds fade. Retail in lation remained benign through much of FY 2025 26, with CPI in lation tracking to historic lows of around 0.25% in October 2025 before edging up to approximately 1.33% by December 2025, comfortably within the RBIs tolerance band of 2 6%. This benign in lation environment, together with the RBIs rate cut in December 2025, has supported consumer sentiment and discretionary spending a favourable backdrop for a consumption-linked, urban-centric business such as ours. The Union Budget for FY 2025 26 also introduced income tax rationalisation measures that placed additional disposable income in the hands of the middle-class consumer, a segment that forms a core part of the customer base for organised jewellery retail in India.

II. The Gems and Jewellery Industry Global Jewellery and Gold Market

Calendar year 2025 was a landmark year for the global gold market, with total gold demand (including OTC transactions) surpassing 5,000 tonnes for the irst time, against a backdrop of 53 separate record highs registered in the gold price during the year. This unprecedented demand was overwhelmingly investment-led, with central banks continuing robust net purchases and exceptional in lows into gold-backed exchange-traded funds and physical bar and coin investment, as investors globally sought safe-haven and portfolio-diversi ication exposure amid elevated geopolitical risk and currency volatility. Jewellery fabrication demand, in contrast, came under pressure through 2025 and into the irst half of calendar 2026, as sustained record-high gold prices weighed on affordability and prompted a shift towards lighter-weight, lower-carat and studded jewellery formats across most major consuming markets, including China and India. Notwithstanding softer volumes, the value of global jewellery demand has generally held up well, re lecting the extent of the price appreciation in gold during the year. Gold supply, meanwhile, touched a six-year low, with ample above-ground inventories and a marked increase in recycling activity helping to balance the market as higher prices encouraged the return of old gold into the supply chain a dynamic that is also increasingly visible in the Indian market through exchange/buyback transactions.

Indian Gems and Jewellery Industry

India remains the worlds second-largest consumer market for gold jewellery and has now emerged as the worlds second-largest diamond jewellery market by value, commanding an approximately 12% global share as of early 2026, having overtaken both China and Japan on the strength of rising incomes, a large and growing base of organised retail, and enduring cultural demand for jewellery as both adornment and investment. Indias gems and jewellery market was valued at approximately Rs.7,31,255 crore (US$ 85 billion) as of January 2026 and is projected to expand to approximately Rs.11,18,390 crore (US$ 130 billion) by FY 2030, implying a healthy forward compound annual growth rate.

Indias gems & jewellery market size, current and projected (Source: India Brand Equity Foundation, January 2026; industry estimates).

The Indian gold jewellery market experienced a divergence between volume and value through FY 2025 26, mirroring the global trend. Domestic gold prices (MCX spot) rose sharply during the year up approximately 81% year-on-year in the March 2026 quarter alone, touching a record quarterly average of over Rs.1,51,000 per 10 grams which weighed on jewellery purchase volumes even as overall consumer spending on gold reached record levels in value terms. Industry data for the quarters comprising FY 2025 26 indicate that while jewellery demand volumes softened year-on-year (re lecting affordability pressures at elevated price points), overall spending on jewellery rose sharply, supported by wedding-related and festive purchases as well as continued demand from higher-income consumers. Retailers across the industry, including our Company, responded to this environment through a greater emphasis on lighter-weight and studded designs, increased exchange/buyback volumes, and continued customer engagement around occasion-led buying (weddings, festivals and Akshaya Tritiya). On the policy front, the Union Budget 2025 26 reduced customs duty on jewellery (HSN 7113) from 25% to 20% and on platinum indings from 25% to 5%, improving affordability and supporting domestic demand for the sector as a whole. The Governments continued push on mandatory BIS hallmarking has strengthened consumer con idence in purity standards across the organised trade, a development that structurally bene its compliant, BIS-registered jewellers such as our Company relative to unorganised participants.

The Indian gems and jewellery sector remains highly fragmented, with the organised trade comprising an estimated 450-plus organised manufacturers, importers and exporters together with a growing base of BIS-hallmarked retail jewellers continuing to gain share from the unorganised segment, a trend that plays to the structural advantage of listed, governance-compliant entities operating in the sector.

(b) Opportunities and Threats Opportunities

Formalisation of the industry: Mandatory BIS hallmarking and the steady shift of consumer preference towards organised, compliance-driven retailers continues to favour listed and governance-compliant players over the large unorganised segment that still dominates the Indian jewellery trade, creating a structural runway for market share gains.

Rising incomes and a deepening middle class: Indias continuing GDP growth (7.4% in FY 2025 26 per RBI estimates), coupled with income-tax rationalisation in the Union Budget and a rising share of the population entering the middle-income bracket, supports a widening base of consumers able to purchase gold jewellery for occasion-led and discretionary consumption. Favourable policy environment: The reduction in customs duty on jewellery (HSN 7113) from 25% to 20% and on platinum indings to 5% under the Union Budget 2025 26, together with continued Government support for the sector through GJEPC-led initiatives and Free Trade Agreements (including with the UAE and the UK), improve affordability and open new avenues for the organised trade.

Wedding and festive-led demand resilience: Despite price-led volume pressure, gold jewellery demand in India remains structurally resilient around wedding and festive occasions, a demand pattern that is far less elastic to price than discretionary or investment-led gold purchases, providing a relatively stable revenue anchor for retail-facing jewellers. Exchange and buy-back led engagement: Rising gold prices have driven a marked increase in exchange/buy-back transaction volumes across the industry, presenting an opportunity to deepen customer engagement, improve inventory turns and support new sales even in a high-price environment. Diversi ication of design and product mix: Growing consumer preference for lighter-weight, studded and contemporary designs as opposed to traditional heavy gold pieces allows the Company to leverage its in-house and third-party/3-D design capabilities to widen its product range across price points and better address affordability-conscious customers.

Threats

Gold price volatility and affordability pressure: Sustained record-high gold prices through FY 2025 26 (domestic prices up approximately 81% year-on-year by the fourth quarter of the year) directly affect the affordability of jewellery and can suppress purchase volumes even where consumer spending in value terms holds up, creating an inherent tension between revenue growth and volume/margin sustainability. Geographic concentration: The Companys operations are presently concentrated in Ahmedabad, Gujarat, exposing the business to localised risks including social unrest, natural calamities or infrastructure disruption that could affect a disproportionate share of revenue given the absence of a wider geographic network.

Dependence on outsourced manufacturing and a limited supplier base: The Company does not manufacture its own jewellery and relies on a limited number of suppliers, without long-term formal agreements, exposing it to supply chain disruption, input cost pass-through risk and potential quality or delivery inconsistencies. Intensifying competition: The jewellery retail market continues to see aggressive expansion by large national chains and established regional players with signi icantly greater brand recognition, marketing budgets and scale, intensifying competition for customer wallet share, particularly in urban markets. Seasonality of demand: A significant portion of revenue is concentrated around festive, wedding and cultural buying periods, exposing turnover and inventory planning to seasonal swings and increasing the risk of inventory carrying costs during non-seasonal periods. Regulatory and duty changes: Changes in import duty on gold and precious metals (including the increase in gold import duty to 15% effected in May 2026, subsequent to the close of the financial year) can materially alter landed costs, smuggling incentives and overall industry economics with limited lead time for adjustment.

Absence of trademark and design registration: The Company has not registered its brand under the Trade Marks Act, 1999 or its jewellery designs under the Designs Act, 2000, leaving it relatively exposed to brand dilution, counterfeiting and design duplication risk as the business scales.

(c) Segment-wise or Product-wise Performance

The Company operates as a single reportable business segment, being the wholesale, retail and trading of gold and silver jewellery and related articles, in accordance with Ind AS 108 Operating Segments. The Companys revenue is predominantly derived from the sale of gold jewellery, with a marginal contribution from silver jewellery and other allied articles such as utensils. As the Companys operations, resources and performance are reviewed by the Chief Operating Decision Maker on a consolidated, single-segment basis, no separate segment-wise financial disclosures have been made in the financial statements for the year under review. There is accordingly no segment-wise or product-wise performance disclosure required beyond the financial statements presented elsewhere in this Annual Report.

(d) Outlook

The Companys outlook for FY 2026 27 is shaped by a broadly constructive macroeconomic backdrop, tempered by continuing volatility in gold prices. Indias GDP growth is expected to remain amongst the strongest of any major economy, with the RBI projecting continued momentum into the irst half of FY 2026 27 (Q1 growth projected at 6.9% and Q2 at 7.0%), supported by resilient domestic consumption, moderate in lation, and the full-year impact of GST and income-tax rationalisation measures introduced during FY 2025 26. This should continue to support discretionary and occasion-led consumer spending, a key demand driver for the Companys products. Within the gems and jewellery industry, near-term demand is likely to remain sensitive to the trajectory of gold prices, particularly following the increase in gold import duty to 15% effected in May 2026. The Company expects consumer preference to continue shifting towards lighter-weight, lower-carat and studded jewellery formats, and towards higher exchange/buy-back volumes, and intends to calibrate its product mix, design offering and inventory planning accordingly. The Board and management remain focused on strengthening the Companys compliance and governance framework as a listed entity, deepening customer relationships in its existing Ahmedabad market, and evaluating opportunities to prudently widen its retail footprint and product range over the medium term, while maintaining a disciplined approach to working capital and cost management in light of the margin pressures experienced during the year under review.

(e) Risks and Concerns

The Companys Board and management have identi ied the following key risks and concerns relevant to its business, issued in connection with the Companys Rights Issue during the year.

These risks are periodically reviewed by the Board, and appropriate mitigation measures are adopted where practicable. Gold and precious metal price volatility: Fluctuations in the prices of gold, silver and other precious metals directly affect both the cost of procurement and end-customer demand. The Company is unable to fully control or hedge this exposure, and sustained price volatility can compress margins and create unpredictability in revenue and cash lows. Concentration of operations: The Companys operations are conducted from limited location in Ahmedabad, Gujarat. This geographic concentration exposes the Company to localised risks including social unrest, natural calamities and infrastructure disruption, without the mitigating diversi ication of a wider store network.

Dependence on outsourced manufacturing and limited suppliers: The Company does not manufacture its own jewellery and depends on a limited number of suppliers, without long-term formal agreements, for the sourcing of inished jewellery. This creates exposure to supply disruption, pricing changes and quality/delivery inconsistency. Working capital intensity: The jewellery trading business is inherently working-capital intensive, requiring significant investment in inventory. Elevated working capital requirements can constrain liquidity and increase reliance on external inancing during periods of rapid inventory build-up. Seasonality of demand: A significant proportion of revenue is concentrated around festive, wedding and cultural buying periods, exposing the Company to a pronounced seasonal cash low and inventory pattern. Inventory and overstocking risk: Misjudged demand projections can result in unsold inventory following peak seasons, increasing holding costs and tying up working capital in slow-moving stock. Competitive intensity: The Company operates in a highly competitive market that includes large national and regional jewellery brands with signi icantly greater scale, brand recognition and marketing resources. Design trend and fashion risk: Consumer jewellery preferences evolve rapidly. Failure to adapt design offerings to changing trends could result in unsold inventory and loss of market share.

Absence of trademark and design registration: The Companys brand is not registered under the Trade Marks Act, 1999, nor are its jewellery designs registered under the Designs Act, 2000, which may limit the Companys ability to prevent counterfeiting or design duplication. Counterfeit products: The prevalence of counterfeit jewellery in the broader market can affect consumer trust and brand reputation across the organised trade, including the Company.

Dependence on key management personnel: The Companys performance is closely linked to the experience and continued involvement of its Promoters and senior management team. Loss of key personnel could disrupt strategic continuity.

Related party transactions: The Company has, in the ordinary course of business, entered into transactions with related parties, including its Promoters, which may give rise to potential con licts of interest.

Information technology and operational risk: The Companys reliance on information technology systems for inventory, sales and financial reporting exposes it to risks of system failure, disruption or inadequate modernisation relative to industry practice. Regulatory and compliance risk: Non-compliance with the Companies Act, 2013, SEBI LODR Regulations or other applicable laws could result in penalties or regulatory action that may affect the Companys operations and reputation.

(f) Internal Control Systems and their Adequacy

The Company has in place an adequate system of internal financial controls commensurate with the size, scale and nature of its operations, designed to provide reasonable assurance regarding the reliability of financial reporting, the safeguarding of assets against unauthorised use or disposal, and compliance with applicable laws and regulations. These controls cover key areas of the Companys operations, including procurement, inventory management, sales, cash and bank management, and financial reporting and closing processes. The Company has appointed an Internal Auditor who conducts periodic internal audits of the Companys operations and financial processes. The scope and indings of the internal audit are reviewed by the Audit Committee of the Board on a regular basis, and any observations arising therefrom are tracked through to closure by management. The Audit Committee also reviews the adequacy of internal financial controls and risk management systems as part of its terms of reference under Regulation 18 of the SEBI LODR Regulations and Section 177 of the Companies Act, 2013. The Statutory Auditors, in the course of their audit of the financial statements, have also reviewed the internal financial controls over financial reporting and have not reported any material weakness for the year under review. The Board is of the view that the internal control systems currently in place are adequate for the Companys present scale of operations, and the Company continues to invest in strengthening these systems as its business grows.

(g) Discussion on Financial Performance with respect to Operational Performance

The financial statements of the Company have been prepared in accordance with the Indian Accounting Standards (Ind AS) noti ied under Section 133 of the Companies Act, 2013. A summary of the Companys financial performance for FY 2025 26, as compared with FY 2024 25, is set out below. All igures are in Rs. Lakhs unless otherwise stated.

Statement of Pro it and Loss Summary

Particulars	FY 2025-26	FY 2024-25	% Change
Revenue from Operations	2,698.11	11,298.13	-76.12%
Particulars	FY 2025-26	FY 2024-25	% Change
Other Income	10.94	10.09	+8.43%
Total Revenue	2,709.06	11,308.22	-76.04%
Purchase of Stock-in-Trade	2,571.68	11,360.49	-77.36%
Changes in inventories of inished goods, work-in- progress and Stock-in-Trade	(40.01)	(312.95)	-87.22
Employee Bene it Expense	47.52	75.22	-36.82%
Financial Costs	7.79	19.70	-60.46
Depreciation and Amortisation	7.48	7.15	+4.62%
Other Administrative Expenses	36.73	68.13	-46.09%
Total Expenses	2,631.19	11,217.74	-76.55%
Pro it Before Tax	77.87	90.48	-13.94%
Tax Expense	21.28	22.61	-5.88%
Pro it After Tax	56.59	67.86	-16.61%
Basic & Diluted EPS (Rs.)	0.38	0.45	-15.56%

Note: Figures recomputed from the audited financial statements and notes forming part thereof; refer accompanying Balance Sheet, Statement of Pro it and Loss, Cash Flow Statement and Notes to Accounts for complete details.

Revenue from Operations and Pro it After Tax, FY 2024-25 vs FY 2025-26 (Rs. in Lakhs). Revenue from operations declined sharply by 76.1% during FY 2025 26 to Rs.2,698.11 Lakhs, from Rs.11,298.13 Lakhs in the previous year. This contraction in topline was accompanied by an even steeper decline in the cost of purchases, which fell 77.4% to Rs.2,571.68 Lakhs (from Rs.11,360.49 Lakhs), marginally outpacing the fall in revenue and helping to partly cushion margins despite the sharp drop in business volumes. As a consequence, the Companys Pro it Before Tax declined from Rs.90.48 Lakhs in FY 2024 25 to Rs.77.87 Lakhs in FY 2025 26, a fall of 13.9%, while Pro it After Tax declined from Rs.67.86 Lakhs to Rs.56.59 Lakhs, down 16.6%. Basic and diluted EPS correspondingly fell from Rs.0.45 to Rs.0.38, a decline of 15.6%. Employee bene it expense declined by 36.8% during the year, and other administrative expenses fell by 46.1%, re lecting cost discipline amid the lower revenue base. Tax expense declined by a more modest 5.9%, from Rs.22.61 Lakhs to Rs.21.28 Lakhs a slower pace than the fall in pre-tax pro it, which weighed further on the bottom line.

Balance Sheet Summary

(In Lakhs)

Particulars	As at 31.03.2026	As at 31.03.2025
Equity Share Capital	1503.95	1503.95
Other Equity	971.96	915.33
Total Equity (Net Worth)	2475.91	2419.28
Non-Current Borrowings	49.42	-
Inventories	1517.80	1477.75
Trade Receivables	722.88	801.09
Particulars	As at 31.03.2026	As at 31.03.2025
Cash and Cash Equivalents	8.70	4.72
Total Assets	2581.96	2610.63

Note: Total Equity has been stated after reconciling the paid-up Equity Share Capital and Other Equity, consistent with the Statement of Changes in Equity and Notes to Accounts forming part of the audited financial statements. The Companys net worth grew modestly during the year, rising from Rs.2,419.28 Lakhs to Rs.2,475.91 Lakhs, an increase of 2.3%, driven by retained pro its added to Other Equity during FY 2025 26. Inventories increased marginally by 2.7% to Rs.1,517.80 Lakhs, re lecting a modest build-up of stock alongside prevailing gold prices. Trade receivables declined by 9.8% to Rs.722.88 Lakhs from Rs.801.09 Lakhs, re lecting disciplined collections during the year. Cash and cash equivalents nearly doubled, rising 84.3% to Rs.8.70 Lakhs from Rs.4.72 Lakhs. The Company availed non-current borrowings of Rs.49.42 Lakhs during the year, as against a nil balance as at 31.03.2025, re lecting fresh long-term debt taken on to support the Companys operations. Total assets declined marginally by 1.1%, from Rs. 2,610.63 Lakhs to Rs.2,581.96 Lakhs, even as the Companys net worth position strengthened.

Cash Flow Summary

Particulars	FY 2025-26	FY 2024-25
Net Cash from/(used in) Operating Activities	(61.75)	(664.84)
Net Cash from/(used in) Investing Activities	65.68	(14.28)
Net Cash from/(used in) Financing Activities	0.04	-
Net Increase/(Decrease) in Cash & Cash Equivalents	3.98	(679.12)

Operating cash out low narrowed significantly during the year, from Rs.664.84 Lakhs in FY 2024 25 to Rs.61.75 Lakhs in FY 2025 26, re lecting an improvement in working capital management during the year. Investing activities resulted in a net cash in low of Rs.65.68 Lakhs in FY 2025 26, as compared to a net cash out low of Rs.14.28 Lakhs in FY 2024 25. Financing activities generated a marginal net cash in low of Rs.0.04 Lakhs in FY 2025 26, as against a nil balance in FY 2024 25. Consequently, the Company reported a net increase in cash and cash equivalents of Rs.3.98 Lakhs during FY 2025 26, as against a net decrease of Rs.679.12 Lakhs in FY 2024 25.

(h) Material Developments in Human Resources / Industrial Relations

The Company believes in maintaining a lean, experienced and stable workforce appropriate to the scale of its operations. As at March 31, 2026, the Company had 15 (Fifteen) employees on its rolls. There were no material changes in the Companys human resource structure during the year under review, and industrial relations remained cordial throughout FY 2025 26, with no instances of work stoppage, disputes or other disruptions. The Company continues to place emphasis on the training and product knowledge of its customer-facing staff, given the specialised and relationship-driven nature of jewellery retail, and remains committed to maintaining a safe, respectful and compliant workplace, including through the Internal Complaints Committee constituted under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, as detailed in the Corporate Governance Report forming part of this Annual Report.

(i) Significant Changes in Key Financial Ratios

In accordance with Schedule V(B) of the SEBI LODR Regulations, the Company is required to disclose details of significant changes (i.e., changes of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations therefor. The table below sets out the relevant ratios for FY 2025 26 as compared with FY 2024 25, computed from the audited financial statements and the ratio workings forming part of the Notes to Accounts.

Ratio	FY 2025-26	FY 2024-25	% Variance	Explanation
Debtors Turnover Ratio (times)	3.73	14.10	-74%	This ratio was decrease due to reduction in revenue. As the reduction in receivables was not proportionate to the decline in revenue, the receivables remained relatively high in comparison to sales, resulting in a slower collection cycle
				This indicates reduced ef iciency in converting receivables into cash during the year.
Inventory Turnover Ratio (times)	1.78	7.65	-77%	The Ratio was signi icantly declined primarily due to substantial reduction in revenue. The decline in sales without a corresponding reduction in inventory resulted in slower inventory movement and lower inventory utilization during the year.
Current Ratio (times)	49.90	13.33	274%	The ratio signi icantly increased due to significant reduction in current liabilities. The improvement may be attributable to improved operational ef iciency, better utilization of resources, stronger working
Ratio	FY 2025-26	FY 2024-25	% Variance	Explanation capital management.
Debt-Equity Ratio	0.02	0.05	-61%	This decrease was primarily due to reduction in the Companys total debt , while shareholders equity has increased. The combined effect of lower borrowings and a stronger equity base resulted in a lower leverage ratio, indicating reduced dependence on external debt inancing and an improvement in the Companys capital structure.
Operating Pro it Margin (%)	0.20%	0.86%	-76.7%	The decline re lects margin compression as the cost of purchases (up 60.9%) grew signi icantly faster than revenue (up 37.2%), driven by the sharp rise in gold prices during the year, compounded by a one-off increase in ROC and statutory expenses (Rs.37.53 Lakhs vs. Rs.5.33 Lakhs) associated with the enhancement of share capital pursuant to the Rights Issue.
Net Pro it Margin (%)	2.10%	0.60%	249%	The change is attributable to the reduction in revenue. Although the Company may have implemented cost-control measures, these were insuf icient to fully offset the impact of lower revenue

(j) Change in Return on Net Worth

Particulars	FY 2025-26	FY 2024-25	% Change
Pro it After Tax (Rs. in Lakhs)	56.59	67.86	-16.61%
Net Worth (Rs. in Lakhs)	2475.91	2419.28	2.34%
Return on Net Worth (%)	2.29%	2.80%	-18.48%

Return on Net Worth declined from 2.80% in FY 2024 25 to 2.29% in FY 2025 26, a decrease of approximately 18.5%. This decline was driven primarily by the fall in pro itability during the year. As discussed in detail under Discussion on Financial Performance above, Pro it After Tax declined by 16.6% during the year, from Rs.67.86 Lakhs to Rs.56.59 Lakhs. Meanwhile, the Companys Net Worth increased modestly by 2.3%, from Rs.2,419.28 Lakhs to Rs.2,475.91 Lakhs, on account of retained pro its added to Other Equity during the year, which marginally enlarged the equity base against which returns are measured. The combination of lower pro its against a slightly larger equity base resulted in the overall decline in Return on Net Worth. The Board expects Return on Net Worth to improve over the medium term as operating performance recovers and pro itability strengthens.

Cautionary Statement

Statements in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates, expectations or predictions may be ‘forward-looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could in luence the Companys operations include economic conditions affecting demand and supply, government regulations, tax regimes, natural calamities, and other factors that are beyond the control of the Company. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements on the basis of any subsequent developments, information or events.