H. R. Hygiene Products Ltd Management Discussions

The following discussion and analysis of our financial condition and results of operations for the financial year ended on 2026, 2025 and 2024 is based on, and should be read in conjunction with, our Restated Financial Statements, including the schedules, notes and significant accounting policies thereto, included in the chapter titled Restated Financial Statements beginning on page 181 of this Red Herring Prospectus. Our Restated Financial Statements have been derived from our audited financial statements and restated in accordance with the SEBIICDR Regulations and the ICAI Guidance Note.

You should read the following discussion of our financial condition and results of operations together with our restated financial statements included in this Red Herring Prospectus. You should also read the section titled Risk Factors beginning on page 21 of this Red Herring Prospectus, which discusses a number offactors, risks and contingencies that could affect our financial condition and results of operations. Our fiscal year ends on March 31 of each year, so all references to a particular fiscal year are to the twelve-month period ended March 31 of that year.

In this section, unless the context otherwise requires, any reference to we, us or our refers to H. R. Hygiene Products Limited, our Company. Unless otherwise indicated, financial information included herein are based on our Restated Financial Statements for the financial year ended on 2026, 2025 and 2024 included in this Red Herring Prospectus beginning on page 181.

Note: Statement in the Management Discussion and Analysis Report describing our objectives, outlook, estimates, expectations or prediction 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 make a difference to our operations include, among others, economic conditions affecting demand/supply and price conditions in domestic and overseas market in which we operate, changes in Government Regulations, Tax Laws and other Statutes and incidental factors.

BUSINESS OVERVIEW

We are a manufacturer of hygiene products with a growing presence in the Indian market. Under our brand framework, we have developed Femiss, Womanica, ElderFit and Bloom Baby, each designed to address consumer needs across the hygiene care spectrum, from babies to young women and the elderly. While our core focus has been on sanitary napkins, we have progressively diversified our portfolio to include a broader range of female care and wellness products, with Femiss catering to the economic segment through affordable and reliable sanitary napkins, Womanica offering premium high-absorbency solutions, ElderFit extending specialized hygiene care to the elderly, and Bloom Baby focusing on safe and comfortable baby care. We also manufacture our product sanitary napkin on white label for few customers. Our products are distributed pan-India through a dual-channel strategy comprising an extensive offline retail presence with network of dealers and e-commerce platforms including Meesho, Amazon, Glowroad, Flipkart, Snapdeal and JioMart, catering to both B2B and B2C customers. As on April 30, 2026 we have 25 SKUs across product range.

We had a diversified customer base of more than 227 customers in 28 states and 8 union territories in India for the last three Fiscals, which enables us to de-risk and reduce our dependency on any customer or group of customers. We focus on marketing and distributing our products to match the needs and preferences of consumers across our various brands. Our brands presence is particularly strong in western India, with Gujarat as the dominant market followed by our presence in Maharashtra and Rajasthan.

For more details, please refer chapter titled Our Business beginning on page 129 of this Red Herring Prospectus. SIGNIFICANT DEVELOPMENTS AFTER March 31, 2026

In the opinion of the Board of Directors of our Company, since the date of the last financial year / period ended as stated in this Red Herring Prospectus, there have not arisen any circumstance that materially or adversely affect or are likely to affect the profitability of our Company or the value of its assets or its ability to pay its material liabilities within the next twelve months.

Our business is subject to various risks and uncertainties, including those discussed in the section titled Risk Factors on page 21 beginning of this Red Herring Prospectus.

Our Companys future results of operations could be affected potentially by the following factors:

1. Raw Material & Supply Chain

This combined risk factor addresses the companys vulnerability to supply chain disruptions. Our raw materials are sourced from suppliers in the U.S. and India, with whom we have built longstanding relationships; however, we do not enter into long-term agreements, leaving us vulnerable to price fluctuations and supply uncertainties. Expenditure for materials consumed comprised 46.24%, 42.11% and 46.30% of our revenue from operations for the financial Fiscals 2026, 2025 and 2024, respectively. The companys heavy reliance on imported fluff pulp and the scarcity of Super Absorbent Polymer (SAP) both of which could impact raw material supply and production. Additionally, logistics bottlenecks such as transport strikes, road blockages or port congestion can disrupt both raw material inflow and the distribution of finished products.

Particulars	Purchase of raw materials
	March 31, 2026		March 31, 2025		March 31, 2024
	t In lakhs	%	t In lakhs	%	t In lakhs	%
Import	318.54	5.74%	1541.23	38.60%	2370.42	46.62%
Domestic	5,234.63	94.26%	2451.36	61.40%	2713.70	53.38%
Total	5,553.17	100.00%	3,992.59	100.00%	5,084.12	100.00%

Distribution is managed through Consignment Sole Agents (CSAs) with a presence in different states. CSAs are responsible for storage, handling, and timely distribution of products within their territories, though our nonexclusive arrangements may limit long-term stability and control. Transportation is carried out through third-party providers primarily by road which adds to operational risk.

2. Our business is dependent on our manufacturing facility and the loss of or shutdown of operations of any of these facilities could adversely affect our business

Our companys business faces a high operational risk due to its reliance on a single, modern manufacturing facility in Rajkot, Gujarat. The concentration of the entire production capacity in one location makes the company extremely vulnerable to any event that could cause a shutdown. Should a natural disaster, fire, major power outage, or an internal issue like machinery failure or a labour strike occur, all production would cease. This would lead to a complete loss of revenue, as the company would be unable to full-fill orders. In addition, extended shutdowns could damage the companys reputation, potentially causing distributors and key customers to seek more reliable suppliers. Cybersecurity incidents, contamination, or quality control failures could also force temporary shutdowns or product recalls, affecting both revenue and brand trust. The resulting loss of revenue, coupled with fixed operational expenses, could impact the companys ability to meet debt obligations and jeopardize its longterm viability as an unlisted, un-funded entity.

3. Market & Competitive Risks

This combined risk factor details the challenges we face from market dynamics. The company is vulnerable to aggressive pricing strategies by competitors, which could impact its margins and cash flow. The companys EBITDA margin was 13.07% in 2026, an increase from 12.88% in 2025, and its Net Profit Ratio was 8.73% in 2026, up from 7.92% in 2025, indicating recent profitability improvements. And the shift in consumer preferences towards eco-friendly alternatives like menstrual cups, reusable pads, and tampons, which could shrink the addressable market.

4. The Impact of Government Policy and Regulation

The impact of government policy and regulation on a company is multifaceted, as it encompasses regulatory compliance, the influence of government initiatives, and broader economic conditions. New regulations, such as Quality Control Orders (QCOs) from the Bureau of Indian Standards (BIS), require products to meet stringent criteria and carry the ISI mark. While this is a non-negotiable requirement that demands significant investment in testing and factory inspections, it can ultimately enhance consumer trust and provide a competitive advantage.

The market is also positively influenced by government programs that promote menstrual hygiene, such as the Menstrual Hygiene Scheme and the Pradhan Mantri Bharatiya Janaushadhi Pariyojna (PMBJP). These initiatives increase awareness and accessibility in rural and underserved areas, thereby expanding the potential consumer base. Additional, during economic slowdowns or periods of high inflation, consumers may switch to cheaper alternatives, negatively impacting sales. Conversely, periods of robust economic growth and rising disposable incomes can lead to a trend of premiumization, where consumers are more willing to spend on higher-quality, branded products.

5. Indirect Taxation on our Products

Our products are subject to various forms of indirect taxation, including sales tax, value-added tax (VAT), and excise duties. These taxes are currently determined based on prevailing tariff classifications and rates. Any changes in tariff classifications, rates, or both could increase our tax burden, thereby adversely affecting our cost structure and profitability. Additionally, evolving taxation policies in India or other markets could create uncertainty in pricing strategies and impact overall competitiveness.

6. Macroeconomic Factors

The performance of our business is closely linked to macroeconomic conditions. Economic downturns, recessions, political instability, social unrest, or natural disasters in India or our other markets can disrupt operations, supply chains, and consumer demand. Furthermore, volatility in crude oil prices, rising interest rates, and inflationary pressures can increase operational costs, reduce margins, and affect consumer spending patterns, all of which can materially impact our financial results.

The scale of our operations and vast distribution network along with our customers confidence have had a significant impact on our revenues and profitability. Set out below are a few key performance indicators

(? in Lakhs)

Particulars	Units	For the financial year ended March 31, 2026	For the financial year ended March 31, 2025	For the financial year ended March 31, 2024
Revenue from Operations	t	13,072.09	11,462.56	8,434.76
Revenue CAGR (1)	%	24.49%
EBITDA (2)	t	1,708.34	1,476.61	757.66
EBITDA Margin (3)	%	13.07%	12.88%	8.98%
PAT	t	1,140.66	908.10	466.41
PAT Margin (4)	%	8.73%	7.92%	5.53%
Return on Equity (RoE) (%) (5)	%	30.90%	48.65%	126.65%
Return on Capital Employed (%) (6)	%	24.86%	25.48%	23.10%
Net Fixed Asset Turnover Ratio (in Times) (7)	Times	20.40	16.02	10.30
Net Capital Turnover Ratio (in Times) (8)	Times	3.18	5.22	8.81
Debt to Equity Ratio (in Times) (9)	Times	0.51	0.67	4.19
Return on Assets (10)	%	6.67%	10.03%	9.54%
Current Ratio (11)	Times	1.41	1.71	1.31
Number of Sanitary napkin packets sold	Unit sold	18,13,00,285	17,07,28,984	11,40,18,721
Number of Diaper packets sold	Unit sold	424,110	2,75,880	Nil

Notes:

1 Revenue CAGR is calculated by dividing the Revenue from operation for the FY 2026 by the Revenue from operation for the FY 2025, raising to the power of one divided by the number of compounding period i.e. 2 years and subtracting by one.

< 2 EBITDA is calculated as Profit before tax + Depreciation + Interest Expenses - Other Income.

< 3 EBITDA Margin is calculated as EBITDA divided by Revenue from Operations.

<4) pat Margin is calculated as PAT for the period/year divided by revenue from operations.

< 5 Return on Equity

< 6) Return on Capital Employed is calculated as EBIT divided by total capital employed. Capital employed is calculated as sum of total equity and total borrowings. EBIT is calculated as EBITDA minus depreciation and amortization

< 7 ) Net Fixed Asset Turnover ratio is calculated as Revenue from operation divided by Net fixed Asset < 8 Net Capital Turnover Ratio is calculated as Revenue from operation divided by Capital employed < 9 Debt to Equity Ratio is calculated as total borrowings divided by total equity. Total Borrowings is calculated as sum of non - current borrowings, current borrowings and lease liabilities.

< 100 Return on Assets is calculated by dividing the total assets by the profit after tax.

< 11 Current Ratio is a liquidity ratio that measures our ability to pay short - term obligations

SIGNIFICANT ACCOUNTING POLICIES

For Significant accounting policies please refer Significant Accounting Policies, Annexure IV beginning under Restated Financial Statements on page 181 of this Red Herring Prospectus.

DETAILS OF THE REVENUE RECOGNITION METHOD ADOPTED BY THE ISSUER AND ITS BASIC PARAMETERS.

Revenue is measured at the fair value of the consideration received or receivable where the ownership and significant risk have been transferred to the buyer.

Sales returns are accounted for / provided for in the year in which they pertain to, as ascertained till the finalization of the books of account.

Compensation on account of crop quality discounts is accounted for as and when settled.

COMPONENTS OF INCOME AND EXPENDITURE Total Revenue

Our total revenue is divided into revenue from operations and other income.

Revenue from operations consists of Domestic Sales, Export Sales and Other Sales Income.

Other income consists of Gain on Foreign Exchange Rate Fluctuation, Interest on PGVCL Deposit, Interest Income Fixed Deposit, Kasar Income and Rate Difference, MEIS Claims, Rate Difference, Commission on Sales, Interest on IT refund and Profit on Sale of Asset.

Total Expenses

Our total expenses comprise of Cost of materials consumed, Changes in inventories of finished goods work-inprogress and Stock-in-Trade, Employee benefits expense, Finance costs, Depreciation and amortization expense and Other Expenses.

Cost of materials consumed

Cost of materials consumed includes Opening stock of Raw material, purchase of raw material and closing stock of raw material.

Changes in inventories of finished goods work-in-progress and Stock-in-Trade

Changes in inventories of finished goods work-in-progress and Stock-in-Trade includes opening finishes goods, closing finished goods and Net increase in Stocks of finished goods.

Employee benefits expenses

Employee benefit expenses includes Salary and Wages, Directors Remuneration, Contribution to Provident and other Funds, Staff Welfare Expenses, Employees Gratuity Expense and Marketing Staff Expenses.

Finance Costs

Finance costs is divided into Interest Expense and Other Borrowing costs.

Interest Expense includes Interest Expense on Term Loan, Interest Expense on Working Capital Loan, Bank Penal Interest and Interest on Security Deposit.

Other Borrowing costs includes Loan Interest NBFC, Loan Processing Charges, CC Renewal Charges and Loan Closure Processing Charges.

Depreciation and Amortization Expenses

Depreciation and amortization expenses include Depreciation of Property, Plant and Equipment and Amortisation of Intangible Asset.

Other Expenses

Other Expenses include Manufacturing & operating Expenses, Administration & Other Expenses and Selling & distribution Expenses

Manufacturing & operating Expenses include Repairs to Machinery (Machinery and instrument), Repair & Maintenance Expense (Machinery Part Purchase), Freight and Transportation Expenses, Factory General Expenses, Factory Property Tax, Job-work Expenses, Export - Other Expenses, Import Freight Expense, Factory Pest Control Expenses, Electrification Expenses, Laboratory and Testing Fees, Loading and Unloading charges, Factory Security Service Expenses, Insurance Expenses-Import/Export/Transportation and Electricity Expenses.

Administration & Other Expenses includes interest on income tax, interest on late payment of custom duty, interest on TDS and TCS, printing and stationery expenses, legal and professional fees, office expenses, bank commission charges, insurance expenses, GST expense, penalty on GST payment, godown rent, AMC charges, computer maintenance expenses, courier expenses, hospitality expenses, membership fees, petrol and diesel expenses, professional tax, ROC fees, donation expense, MAT credit entitlement expense, telephone expenses, statutory audit fees, peer review audit fees, NBFC TDS, bad debts, corporate social responsibility (CSR), refreshment expense, repairs and maintenance of air conditioners, repairs and maintenance of computers and software, factory building maintenance, and foreign exchange rate difference.

Selling & distribution Expenses includes advertisement and publicity expenses, discount and incentive on sales, tour and travelling expenses, freight outward, business support and service fees, online sales logistics charges, online sales service and commission expenses, online sales miscellaneous expenses, other sales and marketing expenses, product and catalogue design expenses, scheme discounts, inland and overseas tour and travelling expenses, and rate difference.

RESULTS OF OPERATIONS

The following discussion on results of operations should be read in conjunction with the Restated Financial Statements of our Company for the financial years ended on 2026, 2025 and 2024:

(? in Lakhs)

Particulars	For the Year ended on March 31, 2026	% of Total Revenue	For the Year ended on March 31, 2025	% of Total Revenue	For the Year ended on March 31, 2024	% of Total Revenue
Revenue
Revenue from Operations	13,072.09	99.11%	11,462.56	99.53%	8,434.76	63.95%
Other Income	117.93	0.89%	52.93	0.46%	98.57	1.16%
Total Income	13,190.02	100.00%	11,515.49	100.00%	8,533.33	100.00%
Expenses
Cost of materials consumed	6,044.48	45.83%	4,827.11	41.92%	3,905.04	45.76%
Purchases of Stock-inTrade	6,338.91	48.06%	4,143.18	31.41%	2,957.66	22.42%
Changes in inventories of finished goods work-inprogress and Stock-inTrade	(2,525.77)	(19.15) %	(190.68)	(1.66) %	(485.91)	(5.69) %
Employee Benefit expenses	392.68	2.98%	187.74	1.63%	143.80	1.69%
Financial Costs	195.00	1.48%	202.28	1.76%	199.40	2.34%
Depreciation and amortisation expense	119.54	0.91%	135.53	1.18%	51.29	0.60%
Other expenses	1,050.86	7.97%	1,000.09	8.68%	1138.82	13.35%
Total expenses	11,615.70	88.06%	10,305.24	89.49%	7,910.10	92.70%
Profit before exceptional items and tax	1574.32	11.94%	1210.25	10.51%	623.22	7.30%
Exceptional Items	-	-	1.94	0.02%	-	-
Profit before tax	1574.32	11.94%	1212.19	10.53%	623.22	7.30%
Tax expense
Current tax	427.45	3.24%	317.27	2.76%	147.74	1.73%
Deferred tax (credit)/charge	4.55	0.03%	(13.18)	(0.11) %	9.07	0.11%
Earlier Year Taxes	1.65	0.01%	-	-	-	-
Profit for the period / year	1,140.66	8.65%	908.10	7.89%	466.41	5.47%

COMPARISON OF FINANCIAL YEAR ENDED 2026 TO FINANCIAL YEAR ENDED 2025 Components of Balance Sheet

Long Term borrowings:

Long Term Borrowings has increased by 4.53% due to introduction of new unsecured loans obtained to meet working capital requirements.

Short Term Borrowings:

Short term borrowings have decreased by 1.13 % this is mainly attributable reduction in the current maturities of long-term debt due to repayment of loans.

Trade receivables;

Trade receivables have increased by 112.11%, this increase in Trade Receivables is primarily due to the extended credit period granted to debtors in connection with first tranche of third-party government contracts undertaken by the Company.

Trade Payables:

Trade payables have increased by 188.75 % primarily due to higher procurement of goods and services for the execution of third-party government contracts. The corresponding increase in payables also reflects the extended credit period granted by suppliers in respect of these contracts.

Loans and Advances:

Short term Loans and Advances have increased by 77.46 %, this increase is primarily on account of higher amounts recoverable from revenue authorities.

Income

Total Income:

Our total income was increased by 14.54% from t 11,515.49 Lakhs in FY 2025 to t 13,190.02 Lakhs in FY 2026 due to the growth in revenue from Operations.

Revenue from Operations:

Our Revenue from Operations was increased by 14.04 % in the year FY 2025. The amount increased from t 11,462.56 Lakhs in FY 2025 to t 13,072.09 Lakhs in FY 2026. This growth was driven by an increase in sales volumes, reflecting the Companys ability to strengthen its market presence and capitalize on growing customer demand.

Other Income

Other income decreased by 122.79 % from t 52.93 Lakhs in FY 2025 to t117.93 Lakhs in FY 2026. This is primarily due to the recognition of interest subsidy income during Fiscal 2026.

Expenditure

Total Expenses:

Our total expenses increased by 12.72 % from t 10,305.24 Lakhs in FY 2025 to t 11,615.70 Lakhs in FY 2026 due to the factors described below:

Cost of materials consumed

Cost of materials consumed was increased by 25.22 % from t 4,827.11 Lakhs in FY 2025 to t 6,044.48 Lakhs in the FY 2026. This was because of higher procurement of raw materials to support increased production levels in line with the growth in business operations.

Purchases of Trade Goods

Purchases of Trade Goods was increased by 53.00 % from t 4,143.18 Lakhs in FY 2025 to t 6,338.91 Lakhs in the FY 2026. The increase reflects the Companys strategic procurement initiatives to cater to growing customer demand and support the continued expansion of its business operations.

Changes in inventories of finished goods work-in-progress and Stock-in-Trade

Changes in inventories of finished goods work-in-progress and Stock-in-Trade was decreased by 1,224.63% from t 190.68 Lakhs in FY 2025 to t 2,525.77 Lakhs in the FY 2026. This was because of higher closing stock, reflecting the Companys proactive inventory build-up to support anticipated business requirements and ensure timely fulfilment of customer demand.

The Employee Benefit Expenses increased by 109.16 % from ? 187.74 Lakhs in FY 2025 to ? 392.68 Lakhs in FY 2026. This increase was mainly due to an increase in employee headcount and higher marketing salary expenses.

Financial Costs

Our Financial Costs decreased by 3.60 % from ? 202.28 Lakhs in FY 2025 to ? 195.00 Lakhs in FY 2026. This was mainly due to repayment of borrowings and lower outstanding debt levels during the period.

Depreciation and amortisation expense

The Depreciation and Amortization expenses was decreased by 11.79 % from ? 135.53 Lakhs in FY 2025 to ? 119.54 Lakhs in FY 2026 due to addition in fixed during the current year and Overall asset depreciation.

Other expenses

Other expenses decreased by 5.08 % from ? 1,050.86 Lakhs in FY 2025 to ? 1,000.09 Lakhs in FY 2026. This was on account of effective cost optimization measures undertaken across administrative and selling and distribution expenses.

Exceptional Items

We had exceptional items for FY 2026 of ? 1.94 Lakhs.

Profit before Tax

Our profit before tax increased by 29.87 % from ?1,212.18 Lakhs for the FY 2025 to ? 1,574.3 2 Lakhs in FY 2026.

Operating income increase due to increase in revenue from operations and effective cost reduction methods resulting to higher operating margins.

Tax Expenses

Our total tax expense increased by 42.61 % from ? 304.09 Lakhs in FY 2025 to ? 433.65 Lakhs in the FY 2026. Tax expense increased in line with the growth in taxable income during the period.

Profit after Tax

After accounting for taxes at applicable rates, our Profit after Tax increased by 25.61% from ? 908.10 Lakhs in FY 2025 to ? 1,140.66 Lakhs in FY 2026. This was due to due to increase in revenue from operations and effective cost reduction methods resulting to higher operating margins.

1. Increase in sales by 14.04% in Fiscal 2026 than Fiscal 2025

2. Increase in sales under own brand then white labelling the detail break up are as follows:

Particulars	For the Financial year March 31, 2026		For the Financial year March 31, 2025
	Revenue (? in Lakhs)	% of total revenue from operations	Revenue (? in Lakhs)	% of revenue from operations
Own Brand	12,349.82	94.47%	9,061.86	79.06%
White Labelling	392.74	3.00%	300.05	2.62%
Total	12,742.56	97.48%	9,361.90	81.67%

3. In Fiscal Year 2025, the total expenditure amounted to 88.49% of the total income. A notable improvement was seen in Fiscal Year 2026, with expenses dropping to 88.06% of income, largely attributable to reduced outlays across several cost heads.

COMPARISON OF FINANCIAL YEAR ENDED 2025 TO FINANCIAL YEAR ENDED 2024

Components of Balance Sheet

Long Term borrowings:

Long Term Borrowings has decreased by 15.47% due to repayment of NBFC loans and other loans during the period.

Short Term Borrowings:

Short term borrowings have decreased by 12.90 % this is mainly attributable repayment of loans during the period.

Trade receivables;

Trade receivables have increased by 687.28%, the increase in Trade Receivables is primarily due to the extended credit period granted to debtors in connection with first tranche of third-party government contracts undertaken by the Company.

Trade Payables:

Trade payables have increased by 122.44%, primarily due to higher procurement of goods and services for the execution of third-party government contracts. The corresponding increase in payables also reflects the extended credit period granted by suppliers in respect of these contracts.

Loans and Advances:

Short term Loans and Advances have increased by 319.26 %, this increase is due to Advances given to suppliers during the year.

Income

Total Income:

Our total income was increased by 34.95% from t 8,533.33 Lakhs in FY 2024 to t 11,515.49 Lakhs in FY 2025 due to the factors described below:

Revenue from Operations:

Our Revenue from Operations was increased by 35.90 % in the year FY 2025. The amount increased from t 8,434.76 Lakhs in FY 2024 to t 1,1462.56 Lakhs in FY 2025. This exceptional performance was driven by a n increasing in sale volume ratio and marketing and increasing in online selling of products. The quantity of diaper and sanitary napkin sold in last 3 Fiscal are as follow:

Particulars	For the financial year ended March 31, 2026	For the financial year ended March 31, 2025	For the financial year ended March 31, 2024
Number of Sanitary napkin pieces sold	18,13,00,285	17,07,28,984	11,40,18,721
Number of Diaper pieces sold	424,110	2,75,880	Nil

Other Income

Other income decreased by 46.30% from t 98.57 Lakhs in FY 2024 to t 52.93 Lakhs in FY 2025. This is mainly because of decrease in rate difference in sales-purchase and another reason is loss Foreign exchange gain/loss on Import purchase.

Expenditure

Our total expenses increased by 30.28 % from ? 7,910.10 Lakhs in FY 2024 to ? 10,305.24 Lakhs in FY 2025 due to the factors described below:

Cost of materials consumed

Cost of materials consumed was increased by 23.61% from ? 3,905.04 Lakhs in FY 2024 to ? 4,827.11 Lakhs in the FY 2025. This was because of increase in sales volume so more production required for inventory thus the such increase we seen.

Purchases of Trade Goods

Purchases of Trade Goods was increased by 40.08% from ? 2,957.66 Lakhs in FY 2024 to ? 4,143.18 Lakhs in the FY 2025.

Changes in inventories of finished goods work-in-progress and Stock-in-Trade

Changes in inventories of finished goods work-in-progress and Stock-in-Trade was decreased by 60.76% from ? 485.91 Lakhs in FY 2024 to ? 190.68 Lakhs in the FY 2025. This was because of more production will remains unsold at the end of year.

Employee benefit expenses

The Employee Benefit Expenses increased by 30.55% from ? 143.80 Lakhs in FY 2024 to ? 187.74 Lakhs in FY 2025. This increase was mainly due to increasing salaries and wages for the year.

Financial Costs

Our Financial Costs increased by 1.44 % from ? 199.40 Lakhs in FY 2024 to ? 202.28 Lakhs in FY 2025. This was mainly due to interest payment of term loans.

Depreciation and amortisation expense

The Depreciation and Amortization expenses was increased by 164.23 % from ? 51.29 Lakhs in FY 2024 to ? 135.53 Lakhs in FY 2025 due to addition in fixed during the current year and Overall asset depreciation.

Other expenses

Other expenses decreased by 12.18 % from ? 1138.82 Lakhs in FY 2024 to ? 1000.09 Lakhs in FY 2025. This was on account of decrease in other Manufacturing and Operating Expenses in current year.

Exceptional Items

We had exceptional items for FY 2026 of ? 1.94 Lakhs.

Profit before Tax

Our profit before tax increased by 94.50 % from ? 623.23 Lakhs for the FY 2024 to ? 1,212.18 Lakhs in FY 2025. Operating income increase due to increase in sales volumes.

Tax Expenses

Our total tax expense increased by 93.92 % from ? 156.81 Lakhs in FY 2024 to ? 304.09 Lakhs in the FY 2025. Tax expense increase due to disclosing higher profit and higher revenue.

Profit after Tax

After accounting for taxes at applicable rates, our Profit after Tax increased by 94.70 % from ? 466.41 Lakhs in FY 2024 to ? 908.10 Lakhs in FY 2025. This was due to:

4. Increase in sales by 35.90% in Fiscal 2025 than Fiscal 2024

5. Increase in sales under own brand then white labelling the detail break up are as follows:

Particulars	For the Financial year March 31, 2025		For the Financial year 2024
	Revenue (? in Lakhs)	% of total revenue from operations	Revenue (? in Lakhs)	% of revenue from operations
Own Brand	9,061.86	79.06%	453.14	5.37%
White Labelling	300.05	2.62%	5,151.58	61.08%
Total	9,361.90	81.67%	5,604.72	66.45%

6. In Fiscal Year 2024, the total expenditure amounted to 92.70% of the total income. A notable improvement was seen in Fiscal Year 2025, with expenses dropping to 88.49% of income, largely attributable to reduced outlays across several cost heads.

CASH FLOWS

The table below is our cash flows for the financial years ended on 2026, 2025 and 2024: in Lakhs)

Particulars	For the financial year ended on March 31,
	2026	2025	2024
Net cash (used)/from operating activities	157.79	(1008.38)	229.03
Net cash (used)/from investing activities	(41.66)	(23.58)	(573.11)
Net cash (used)/from financing activities	(87.62)	1126.57	305.43

Cash Flows from Operating Activities Cash Flows from Operating Activities

For the year ended March 31, 2026

Our net cash from operating activities was ? 157.79 Lakhs for the year ended March 31, 2026. Our net profit before tax of ? 1574.30 Lakhs for the year ended March 31, 2026 which was primarily adjusted against Depreciation of ? 119.54 Lakhs, Interest Financial Charges of ? 195.00 Lakhs and Interest Income of ? 2.12 Lakhs . Operating profit before working capital changes was ? 1886.73 Lakhs for the year ended March 31, 2026.

The adjustments to operating profit before working capital changes included adjustments for (i) Increase in Receivables by ? 5537.10 Lakhs, (ii) Increase in Loan & Advance by ? 514.46 Lakhs, (iii) Increase in other current Assets by ? 1.72 Lakhs, (iv) Increase in Inventories by ? 2034.45 Lakhs, (v) Increase in Liabilities and Provisions by ? 6358.79 Lakhs. Income Tax paid for the year ended March 31, 2026 was Nil.

For the year ended on March 31, 2025

Our net cash used in operating activities was ? 1008.38 Lakhs for the Financial year ended March 31, 2025. Our net profit before tax of ? 1212.19 Lakhs for the Financial year ended March 31, 2025 which was primarily adjusted against Exceptional Items & Extra-Ordinary Items of ?1.94 Lakhs, Depreciation of ? 135.53 Lakhs, Interest Income of ? 2.08 Lakhs and Interest & Financial Charges of ? 202.28 Lakhs. Operating profit before working capital changes was ? 1545.97 Lakhs for the Financial year ended March 31, 2025.

The adjustments to operating profit before working capital changes included adjustments for (i) Increase in Receivables by ? 4311.55 Lakhs, (ii) Increase in Loan & Advance by ? 505.77 Lakhs, (iii) Increase in other current Assets by ? (2.63) Lakhs, (iv) Decrease in Inventories by ? 643.84 Lakhs, (v) Increase in Liabilities and Provisions by ? 1766.81 Lakhs. Income Tax paid for the period March 31, 2025 amount to ? 145.05 Lakhs.

Our net cash generated in operating activities was ? 229.03 Lakhs for the Financial year ended March 31, 2024. Our net profit before tax of ? 623.22 Lakhs for the Financial year ended March 31, 2024 which was primarily adjusted against Depreciation of ? 51.29 Lakhs, Interest Income of ? 1.58 Lakhs and Interest Financial Charges of ? 199.40 Lakhs. Operating profit before working capital changes was ? 872.33 Lakhs f or the Financial year ended March 31, 2024.

The adjustments to operating profit before working capital changes included adjustments for (i) Increase in Receivables by ? 173.82 Lakhs, (ii) Decrease in Loan & Advance by ? 802.01 Lakhs, (iii) Decrease in oth er current Assets by ? 0.25 Lakhs, (iv) Increase in Inventories by ? 1664.99 Lakhs, (v) Increase in Liabilities and Provisions by ? 407.69 Lakhs. Income Tax paid for the period March 31, 2024 amount to ? 14.44 Lakhs.

Cash Flows from Investing Activities

For the year ended on March 31, 2026

Net cash flow used in investing activities for year ended on March 31, 2026 was ? 41.66 Lakhs. This was primarily on account of Increase in fixed assets of ? 44.89 Lakhs. This was partially offset by Interest Income on Deposits of ? 2.12 Lakhs and Investments & Accrued Interest of ? 1.12 Lakhs

For the year ended on March 31, 2025

Net cash flow used in investing activities for the period March 31, 2025 was ? 23.58 Lakhs. This was primarily on account of Increase in fixed assets of ? 34.68 Lakhs. This was partially offset by Proceeds from Sale of Property, Plant & Equipment of ? 4.50 Lakhs, Interest Income on Deposits of ? 2.08 Lakhs and Investments & Accrued Interest of ? 4.53 Lakhs

For the year ended on March 31, 2024

Net cash flow used in investing activities for the year ended March 31, 2024 was ? 573.11 Lakhs. This was primarily on account of Increase in fixed assets of ? 565.23 Lakhs and Investments & Accrued Interest of ? 9.47 Lakhs. This was partially offset by Interest Income on Deposits of ? 1.58 Lakhs.

Cash Flows from Financing Activities

For the year ended March 31, 2026

Net cash flow used in financing activities for the year ended March 31, 2026 was ? 87.62 Lakhs. This was primarily on account of Repayment of Secured Loans of ? 93.07 Lakhs, Repayment of Unsecured Loans of ? 475.30 lakhs, Financial Charges - Share Issue Expenses of ? 45.85 Lakhs and Interest & Financial Charges of ? 195.00 Lakhs. This was offset by Proceeds from Unsecured Loans of ? 601.76 Lakhs and Increase in Other Long term Liabilities of ? 119.83 Lakhs.

For the year ended March 31, 2025

Net cash flow generated from financing activities for the period March 31, 2025 was ? 1126.57 Lakhs. This was primarily on account of Proceeds from Issue of Equity Shares of ? 1646.00 Lakhs, Proceeds from Unsecured Loans of ? 474.72 lakhs and Increase in Other Long term Liabilities of ? 32.14 Lakhs. This was partially offset by Repayment of Secured Loans of ? 329.80 Lakhs, Repayment of Unsecured Loans ? 494.21 Lakhs and Interest & Financial Charges of ? 202.28 Lakhs.

For the year ended March 31, 2024

Net cash flow generated from financing activities for the year ended March 31, 2024 was ? 305.43 Lakhs. This was primarily on account of Proceeds from Secured Loans of ? 580.15 Lakhs and Proceeds from Proceeds from Unsecured Loans of ? 474.63 Lakhs. This was partially offset by Repayment of Secured Loans of ? 166.45 lakhs, Repayment of Unsecured Loans of ? 381.15 lakhs, Decrease in Other Long term Liabilities of ? 2.36 lakhs and Interest & Financial Charges of ? 199.40 Lakhs.

RELATED PARTY TRANSACTIONS

Related party transactions with certain of our promoter, directors and their entities and relatives primarily relate to remuneration, salary, commission and issue of Equity Shares. For further details of related parties kindly refer chapter titled Restated Financial Statements beginning on page 181 of this Red Herring Prospectus.

OFF-BALANCE SHEET ITEMS

We do not have any other off-balance sheet arrangements, derivative instruments or other relationships with any entity that have been established for the purposes of facilitating off-balance sheet arrangements.

QUALIFICATIONS OF THE STATUTORY AUDITORS WHICH HAVE NOT BEEN GIVEN EFFECT TO IN THE RESTATED FINANCIAL STATEMENTS

The Restated Financial Statements do not contain any qualifications which have not been given effect in the restated financial statements.

QUALITATIVE DISCLOSURE ABOUT MARKET RISK Financial Market Risks

Market risk is the risk of loss related to adverse changes in market prices, costs of transportation, including. We are exposed to inflation and credit risk in the normal course of our business. For further information, see Financial Indebtedness on page 231

Interest Rate Risk

Our financial results are subject to changes in interest rates, which may affect our debt service obligations in future and our access to funds.

Effect of Inflation

We are affected by inflation as it has an impact on the salary, wages, etc. In line with changing inflation rates, we rework our margins so as to absorb the inflationary impact.

Credit Risk

We are exposed to credit risk on moneys owed to us by our customers. If our customers do not pay us promptly, or at all, we may have to make provisions for or write-off such amounts.

Liquidity Risk

Liquidity risk is the risk that we will not be able to meet our financial obligations as they become due. We manage liquidity risk by ensuring, that we will always have sufficient liquidity to meet our liabilities when due.

OTHER MATTERS

Details of default, if any, including therein the amount involved, duration of default and present status, in repayment of statutory dues or repayment of debentures or repayment of deposits or repayment of loans from any bank or financial institution

Except as disclosed in chapter titled Restated Financial Statements beginning on page 181 of this Red Herring Prospectus, there have been no defaults in payment of statutory dues or repayment of debentures and interest thereon or repayment of deposits and interest thereon or repayment of loans from any bank or financial institution and interest thereon by the Company.

Material Frauds

There are no material frauds, as reported by our statutory auditor, committed against our Company, in the last three Fiscals.

Unusual or infrequent events or transactions

Except as described in this Red Herring Prospectus, during the period/ years under review there have been no transactions or events, which in our best judgment, would be considered unusual or infrequent.

Significant Economic Changes that Materially Affected or are Likely to Affect Income from Continuing Operations

Our business has been subject, and we expect it to continue to be subject, to significant economic changes that materially affect or are likely to affect our income from continuing operations identified above in Managements Discussion and Analysis of Financial Condition and Results of Operations -Significant factors affecting our financial condition and results of operation and the uncertainties described in Risk Factors on pages 233 and 21 respectively.

Known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations

Other than as described in the section titled Risk Factors and chapter titled Managements Discussion and Analysis of Financial Conditions and Results of Operations, beginning on page 21 and 233 of this Red Herring Prospectus respectively to our knowledge there are no known trends or uncertainties that have or had or are expected to have a material adverse impact on revenues or income of our company from continuing operations.

Future relationship between Costs and Income

Other than as described in the section titled Risk Factors beginning on page 21 of this Red Herring Prospectus, to our knowledge there are no factors, which will affect the future relationship between costs and income or which are expected to have a material adverse impact on our operations and finances.

The extent to which material increases in revenue or income from operations are due to increased volume, introduction of new products or services or increased prices

Changes in revenue in the last three financial years are as explained in the part Financial Year 2024-25 compared with financial year 2023 -24.

Total turnover of industry segments

Our Company is engaged into business of manufacturing of sanitary Napkins. Relevant industry data, as available, has been included in the chapter titled Industry Overview beginning on page 110 of this Red Herring Prospectus.

Significant dependence on a single or few Suppliers or Customers

Significant proportion of our purchases have historically been derived from a limited number of suppliers. The % of Contribution of our suppliers vis a vis the total purchases for the financial year ended March 31, 2026, 2025 and 2024 are as follows:

Particulars	Suppliers
	March 31, 2026		March 31, 2025		March 31, 2024
	Purchase contribution	% of Purchase	Purchase contribution	% of Purchase	Purchase contribution	% of Purchase
Top 1	6,423.69	54.02%	2,307.68	28.36%	3,972.84	49.40%
Top 3	8,416.64	70.78%	5,985.42	73.57%	6,208.36	77.20%
Top 5	9,046.58	76.07%	6,492.05	79.80%	6,613.08	82.23%
Top 10	10,056.93	84.57%	7,066.93	86.86%	7,278.20	90.50%

Significant proportion of our total revenue have historically been derived from a limited number of Customers. The % of Contribution of our Customers vis a vis the revenue from operations For the financial year ended March 31, 2026, 2025 and 2024 are as follows:

Status of any publicly announced new products or business segments

Period	Revenue from Largest Customer (\u20b9 in Lakhs)	% Contribution of largest customer to revenue from operations	Revenue from Top 5 Customers (\u20b9 in Lakhs)	% Contribution of top 5 to revenue from operations	Revenue from Top 10 Customers (\u20b9 in Lakhs)	% Contribution of top 10 to revenue from operations
Fiscal 2026	6,320.81	48.35%	9,166.97	70.13%	10,511.29	80.41%
Fiscal 2025	3,916.13	34.16%	7,337.74	64.01%	8,976.96	78.32%
Fiscal 2024	2,646.47	31.38%	5,301.86	62.86%	6,711.21	79.57%

Please refer to the chapter titled Our Business beginning on page 129 of this Red Herring Prospectus for new products or business segments.

The extent to which the business is seasonal

Our business is not seasonal. However, during the winter season, there is a notable increase in sales.

Competitive Conditions

Competitive conditions are as described under the Chapters titled Industry Overview and Our Business beginning on pages 110 and 129 respectively of this Red Herring Prospectus.