Haria Apparels Ltd Management Discussions

The management of Haria Apparels Ltd. presents the analysis of the Company for the year ended on March 31(st), 2026 and its outlook for the future. This outlook is based on assessment of the current business environment. It may vary due to future economic and other developments both in India and abroad.

This management discussion and analysis (MD&A) of Haria Apparels Ltd. for the year ended on March 31,2026 contains financial highlights but does not contain the complete financial statements of the Company. It should be read in conjunction with the Companys audited financial statements for the year ended on March 31, 2026.

1)Industry Structure & Development:

The Indian textile and apparel industry remains one of the largest contributors to the economy, driving significant employment and export revenue. In the financial year 2025-26, the sector witnessed structural transitions driven by rising domestic consumption, a strong push toward organized retail, and growing global demand for premium readymade garments.

Despite challenges such as fluctuating raw material pricing (cotton and synthetic yarn) and intensifying competition from lower-cost regional hubs, the domestic landscape presents high potential. Companies focusing on operational agility, value-added apparel segments, and robust supply chain networks are navigating market volatilities with strong resilience.

2) Operational and Financial Performance

During the financial year ended 31st March, 2026, Haria Apparels Limited achieved a total turnover of Rs.12.01 Cr.

Key Performance Highlights:

• Top-line Strategy: The company optimized its product mix, focusing on high-demand, higher-margin retail apparel variants to capture stable revenue channels.

• Cost Control Optimization: Rigorous oversight of manufacturing pipelines and distribution logistics was maintained to mitigate macro-inflationary pressures on logistics and material costs.

• Capacity Utilization: Plant efficiency was incrementally scaled up during high-demand quarters to maximize production yield.

3) Opportunities, Threats, Risks, and Concerns

Opportunities:

• Growing Domestic Middle Class: Rapid urbanization and rising disposable incomes continue to amplify brand and fashion consciousness across tier-1 and tier-2 markets.

• E-commerce Expansion: The rapid expansion of organized e-retail networks offers an efficient direct-to-consumer channel to scale distribution footprint at minimal capital expenditure.

• Government Policy Support: Programs like Production Linked Incentive (PLI) and local textile cluster enhancements bolster long-term manufacturing competitiveness.

Threats & Risks:

• Input Material Volatility: Erratic changes in global cotton production cycles could pressurize margin metrics.

• Intense Competition: The domestic readymade apparel landscape features heavy fragmentation, with continuous downward pricing pressure from unorganized segments and international fast-fashion brands.

• Macroeconomic Trends: Consumer spending changes impacted by inflationary cycles may cause near-term headwinds in discretionary garment purchases.

4) Segment-wise Performance

The company operates primarily under a single consolidated business segment: Textile and Apparel Manufacturing. Consequently, distinct geographical or product segment reporting is not individually applicable. All manufacturing operations and target markets are optimally managed within the domestic sector.

5) Outlook

The outlook for the upcoming fiscal remains cautiously optimistic. Haria Apparels Limited aims to deepen its domestic footprint by exploring institutional volume contracts, reinforcing vendor-partner networks, and sustaining manufacturing excellence. The management will continue to prioritize fiscal discipline, prudent capital working cycles, and lean operating models to protect enterprise value and yield profitable returns.

6) Internal Control Systems and Their Adequacy

The company maintains an adequate and structured system of internal controls designed to match the scale and complexity of its operational footprint. These safeguards ensure:

Systematic and transparent recording of all commercial transactions.

Reliable compliance with statutory rules, local manufacturing guidelines, and listing standards.

Continuous protection of corporate assets against unauthorized distribution or utilization.

Regular internal evaluations and statutory audits are conducted to review, update, and strengthen these protocols in response to changing regulatory landscapes.

7) Human Resources and Industrial Relations

Human capital is a fundamental cornerstone of the companys manufacturing operations. Haria Apparels Limited emphasizes building a safe, non-discriminatory, and highly productive factory floor environment.Workplace training programs were consistently deployed during the year to enhance craftsmanship, reduce material wastage, and uphold product quality parameters. Industrial relations throughout the manufacturing units remained peaceful, cooperative, and aligned with shared operational targets.

CAUTIONARY STATEMENT:

Readers are cautioned that this Management Discussion and Analysis may contain certain forward looking statements based on various assumptions on the Companys present and future business strategies and the environment in which it operates. The Companys actual performance may differ materially from those expressed or implied in the statement as important factors could influence Companys operations such as effect of political conditions in India and abroad, economic development, new regulations and Government policies and such other factors beyond the control of the Company that may impact the businesses as well as its ability to implement the strategies.

For and on behalf of the Board of Directors

BIMAL KANTILAL HARIA
DIRECTOR & CFO
DIN No. 00585299

Date : 14 th August, 2026
Place : Mumbai