Indo National Ltd Management Discussions

INDUSTRY STRUCTURE - DRY BATTERY BUSINESS:

The battery Industry volumes grew 3% for the year 2025-26. Your company has grown battery 3% in value. We identifiedimproving urban coverage, alkaline growth and focus on Institutional channels, modern trade & E-com to grow in this category. D size is continuing its declining trend. The raw material costs and ocean freight all through the year was on the higher side and the Dollar fluctuations severely impacted your company margins.

NON - BATTERY CATEGORY:

Your company witnessed a growth in terms volume in LED lighting, Mosquito bats and Rechargeable flashlights. 33% of revenue contribution is from non-battery categories. Launch of Mosquito repellent under the brand name "Swooper", foray into BLDC ceiling fans has led to diversification into Electrical & homecare category and contributed to 3% of the total topline. Your company has comprehensive plans to grow in each of these categories around products, go-to-market and brand building.

OUTLOOK ON OPPORTUNITIES: BATTERIES:

It has been observed both urban and rural India will be driving consumption in this category. Your company has plans to strengthen urban distribution and make strong expansion into modern trade and e-commerce platforms. Alkaline as a segment has been fastest growing at 50%. Your company has Launched alkaline range named Nippo Thor and Nippo ThorMax as part of the entire urban focus.

NON-BATTERIES:

Last 5 years, your company made LED business as the second largest category by making good inroads. Your company will continue to focus on LED across India through distribution expansion, channel management and new product introductions like Spotlight & Fixtures.

Rechargeable torches at economical price points is one way to accelerate growth and this opportunity is being addressed with the new RC launches.

With mosquito swatters and mosquito repellents, your company is making way into a large "home-care" segment. Your company will invest into new product offerings and focused distribution to drive growth in this category.

SEGMENT WISE / PRODUCT WISE PERFROMANCE BATTERIES:

Your company achieved a revenue of Rs.301 crores for the year 2025-26 as against Rs.291 crores for the year 2024-25 reflecting an increase of 3% over last year.

Nippo Thor, our new alkaline battery has grown by 50% over last year, growing the overall Alkaline powerful category.

FLASH LIGHTS:

Your company achieved a revenue of Rs.14.7 crores for the year 2025-26 as against Rs.18.1 crores for the year 2024-25 reflecting a decrease of 9% over last year.

Rechargeable Torches continue to grow faster while Battery operated Torches remained flat.

LIGHTING AND ELECTRICAL PRODUCTS:

Your company achieved a revenue of Rs.106.9 crores for the year 2025-26 as against Rs.115.6 crores for the year 2024-25 reflecting a decrease of 8% over last year.

Rechargeable Torches continue to grow faster while Battery operated Torches remained flat.

MOSQUITO BATS

Your company achieved a revenue of Rs.18.2 crores for the year 2025-26 as against Rs.20.4 crores for the year 2024-25 reflecting a decrease of 11% over last year. Launched Shield, a new economy mosquito bat to increase reach in both Urban & Rural towns.

NIPPO SWOOPER

Your company achieved a revenue of Rs.7.4 crores for the year 2025-26 as against Rs.10 crores for the year 2024-25 reflecting a decrease of 26% over last year.

THREATS RISK AND CONCERNS BATTERIES:

Shifting of battery operated to rechargeable devices, conversion from Zinc carbon to Alkaline will pose new challenges. However, by taking market share from competition and focussing on alkaline your company will look for fresh growths. The focus should be on managing the raw material costs as a large chunk is being imported with many external factors.

INTERNAL CONTROL SYSTEMS AND ADEQUACY:

The Company has adequate Internal Control procedures commensurate with its size and nature of the business. These business control procedures ensure efficient use and protection of the resources and compliance with the policies, procedures and statutes. The Internal Control system provide for well-documented policies, guidelines, authorizations and approval procedures. The Internal Auditors RGN Price & Co. had carried out Internal Audit extensively throughout the year. The prime objective of such Audit is to test the adequacy and effectiveness of all Internal Controls laid down by the management and to suggest improvements, wherever necessary.

FINANCIAL PERFORMANCE:

The total turnover of the Company for the year under review was Rs.451 Cr. as compared to Rs.458 Cr. in the previous year. The profit after tax for the year under review is (Rs.10.40) Cr. as against Rs.1.01 Cr. in the previous year, driven by exceptional items adjustment.

HUMAN RESOURCES:

The Company regards its human resources amongst its most valuable assets and proactively reviews and evolves policies and processes to attract and retain requisite skill-sets covering technical and managerial functions through a work environment that encourages initiative, provides challenges and opportunities and recognizes the performance and potential of its people. As of March 31, 2026, the number of employees stood at 523 covering all locations compared to 476 as of March 31, 2025.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS

Ratio	Numerator	Denominator	For the year ended March 31, 2026	For the year ended March 31, 2025	% Variance	Reason for Variance
Current Ratio	Current Assets	Current Liabilities	0.74	0.72	3.39%
Debt-Equity Ratio	Total Debt	Shareholders Equity	0.95	0.83	14.67%	Loss incurred during
Debt Service Coverage Ratio	Earnings for debt service	Debt Service	2.03	12.33	(83.51%)	Current FY and Finance Cost drop in net profit
Return on Equity Ratio	Net Profit after taxes	Average Shareholders Equity	(0.05)	0.00	(1,163.51%)	Decline in Net profit
Inventory turnover ratio	Cost of goods sold	Average inventory	4.27	4.55	(6.18%)	NA
Trade Receivables turnover ratio	Net Sales	Average trade receivables	8.48	9.99	(15.15%)	NA
Trade payables turnover ratio	Net Purchases and other expenses	Average Trade Payables	9.75	10.88	(10.42%)	NA
Net capital turnover ratio	Net Sales	Working Capital	(6.96)	(6.89)	0.97%	Due to reduction
Net profit ratio	Net profit after taxes	Net Sales	(0.02)	0.00	(1,141.28%)	in Sales Income
Return on Capital employed	Earning before interest and taxes	Capital Employed	(0.03)	0.01	(459.90%)	Decline in Net profit Increase is due to
Return on investment	Income from Investment	Average Investment	0.01	0.00	79.01%	Interest Income from debentures / loans