Injecto Polymers Ltd Management Discussions

OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations for the financial years ended on March 31, 2026, March 31, 2025 andMarch 31, 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 no. 209 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 no. 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 Injecto Polymers Limited., our Company. Unless otherwise indicated, financial information included herein are based on our “Restated Financial Statements” for financial year ended on 2026, 2025 and 2024 included in this Red Herring Prospectus beginning on page no. 209 of this Red Herring Prospectus.

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

The business operations of our Company can be broadly classified as follows:

A. Manufacturing of a diverse range of packaging products.

B. Trading of plastic granules and Polyvinyl Chloride (PVC) resins

Manufacturing Activity

Our Company is engaged in the production of Polypropylene Woven Fabrics (used as plastic material for making Polypropylene woven bags), Polypropylene Woven Bags (used for industrial and agricultural use), Biaxially Oriented Polypropylene (BoPP) bags (used for packing of food products, animal products, consumer goods, medical supplies and hygiene products), leno bags (used for packing fruits and vegetables), Low Density and Polyester Pouch (used in food, pharmaceutical, cosmetic and industrial packaging) along with Flexible Intermediate Bulk Container (“FIBC”) bags (used in chemical, steel, fertilizer and mineral industries) and non-woven bags (used in medical, hygiene, agriculture packaging and reusable shopping bags).

Our Company’s manufactured products are used for application across a variety of industries like, agriculture, construction, textiles, chemicals, and consumer goods. We primarily operate under a Business-to-Business (B2B) model, generating a major portion of our revenue through bulk orders from institutional and industrial customers. Our products are customised in variety of shapes and sizes as per customer preferences and requirements. The raw materials which are used for manufacturing our products include - polypropylene (PP) granules, Linear Low-Density Polyethylene (LLDPE), Low-Density Polyethylene (LDPE), High-Density Polyethylene (HDPE), Plastic resins and specialty polymers.

Our Company was incorporated as a Private Limited Company under the name of “Injecto Polymers Private Limited” under the Companies Act, 1956 vide certificate of incorporation dated September 04, 1998 and subsequently converted into a public limited company vide a new certificate of incorporation dated July 08, 2024.

As on the date of this Red Herring Prospectus, our Company operates two (2) manufacturing units. Unit I is situated at NH-2 Bypass Road, Jaugram, Abujhati, Jamalpur, West Bengal - 713166 and Unit II is situated at Village Panchpara, P.O. Radhadasi, Andul Road, Howrah, West Bengal - 711317.

SIGNIFICANT DEVELOPMENTS AFTER MARCH 31, 2026

In the opinion of the Board of Directors of our Company, 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.

The following development has taken place after March 31, 2026:

1. Partial Commencement of Phase - III expansion with an additional capacity of 1, 200 MT at our Unit-I located at NH- 2 Bypass Road, Jaugram, Abujhati, Jamalpur, West Bengal - 713166.

FACTORS AFFECTING OUR RESULTS OF OPERATIONS

Our business is subject to various risks and uncertainties, including those discussed in the section titled “Risk Factors" beginning on page no. 21 of this Red Herring Prospectus.

Our results of operations and financial conditions are affected by numerous factors including the following:

• General economic and business conditions in the markets in which we operate and in the local, regional, national and international economies, may indirectly impact industrial growth and, consequently, demand for our packaging products and raw materials;

• The primary raw materials used in our manufacturing process include polypropylene (PP) granules, HDPE, LDPE, LLDPE, and PVC. These are petrochemical derivatives, and their prices are subject to global crude oil price fluctuations, currency volatility, and supply chain dynamics. Sudden increases in raw material prices can adversely affect our margins, especially when we are unable to pass on the cost to customers immediately;

• Our products cater to industries such as agriculture, construction, food grains, textiles, and chemicals. Fluctuations in demand or slowdown in any of these sectors may impact our order volumes. For example, seasonal cycles in the agriculture sector directly influence demand for packaging used for fertilizers, food grains, and seeds;

• Our operations are subject to multiple regulatory requirements, including BIS certification for food-grade packaging and ISO standards for quality and food safety. Any failure to comply with these norms or changes in applicable laws, including environmental regulations, could result in penalties, business disruptions, or reputation loss.;

• Our business performance is significantly dependent on the experience and active involvement of our Promoters, as well as our ability to attract and retain skilled and qualified personnel. Any loss of key individuals or inability to build a strong team could adversely affect our operations and future growth;

• Changes in laws and regulations relating to the industries in which we operate may affect our operations and future growth;

• Our ability to successfully implement our growth strategy and expansion plans is crucial to our future performance. Any delay, underperformance, or unforeseen challenges in executing these plans may adversely affect our business operations, financial condition, and overall growth prospects;

• We operate in a highly unorganised and competitive market, facing constant pressure from both established players and new entrants. Intense competition may affect our pricing, customer retention, and market share, potentially impacting our profitability and growth;

• Any slowdown or recession in the domestic or global economy may lead to reduced demand from key end-user industries, which could adversely affect our revenues, margins, and overall business performance;

• Any disruption or volatility in the Indian or global stock markets may adversely impact investor sentiment, our ability to raise capital, and the valuation of our Company, especially in connection with this Issue;

• Changes in political and social conditions in India or in countries that we may enter, the monetary and interest rate policies of India and other countries, inflation, deflation, unanticipated turbulence in interest rates, equity prices or other rates or prices;

• Our ability to expand our geographical area of operation; and

• Our ability to manage risks that arise from these factors.

COMPETITION

The Indian polypropylene (PP) woven bags industry is characterized by intense competition, with the presence of both organised players and a large number of small-scale and unorganised manufacturers operating across regional markets. For further information, see Risk Factor on - “The industry segments in which we operate being fragmented, we face competition from other large and small players, which may affect our business operations and financial conditions” and “Our Business - Competition” beginning on page no. 37 and 163 respectively.

We face competition from both domestic manufacturers with pan-India operations and small regional players who offer similar products at competitive prices. Many of our competitors operate with low overhead costs and in regions with lower labour or power expenses, which may allow them to price their products more aggressively. Some competitors may also benefit from backward integration (such as in-house tape extrusion or printing) or government incentives under various industrial policies.

In addition, imported woven sacks and flexible intermediate bulk containers (FIBCs) from countries like China, Bangladesh, and Vietnam have started entering the Indian market in certain segments, adding further pressure on pricing and margins, particularly for standardised or commodity-grade woven bags.

We also compete with alternative packaging materials such as jute bags, paper bags, and other types of packing bags, depending on customer preferences, product requirements, and environmental concerns. Shifting regulations on plastic use, sustainability concerns, and customer demand for environmentally friendly packaging may influence buyer preferences and affect market dynamics.

Our ability to compete depends on several factors, including quality, pricing, timely delivery, product customization, capacity utilization, and long-term relationships with B2B customers. While we believe that our product quality, customer relationships, and manufacturing capabilities offer us a competitive advantage, there can be no assurance that we will continue to maintain or grow our market share in the face of evolving market dynamics and increasing competition.

Failure to effectively compete could lead to pricing pressure, reduced profit margins, or loss of existing and potential customers, which may materially and adversely impact our financial condition, results of operations, and growth prospects.

SIGNIFICANT ACCOUNTING POLICIES

For details in respect of Significant Accounting Policies, please refer to the chapter titled “Restated Financial Statements" beginning on page no. 209 of this Red Herring Prospectus.

PRINCIPLE COMPONENTS OF THE STATEMENT OF ASSETS AND LIABILITIES Borrowings:

Our borrowings are divided into long term and short term when the obligations are due for repayment from the reporting period.

• Long Term Borrowings: Obligations that are due for repayment after 12 months from the reporting date are classified as long-term debts/borrowings

• Short Term Borrowings: Obligations that are due for repayment within 12 months from the reporting date are classified as short-term debts/borrowings.

Inventories:

Inventories are assets, which are held for sale in the ordinary course of business or are in any stage of production for such sale or are held in the form of material or supplies to be consumed in the production process or rendering of services and comprises of finished goods, Work in Progress or raw materials or consumables.

Trade Receivables:

Trade receivables represent the amounts due from customers for goods sold or services rendered in the normal course of business.

Trade Payables:

Trade Payables are amounts payable on account of goods purchased or services received in the normal course of business.

COMPARISON OF FINANCIAL YEAR ENDED MARCH 31, 2026 TO FINANCIAL YEAR ENDED MARCH 31, 2025

Detailed comparison of the principal components of the Statement of Assets and Liabilities for the year ended March 31, 2026 as against the financial year ended March 31, 2025 are provided below:

				(Z in Lakhs)
Particulars	For the financial year ended March 31, 2026	For the financial year ended March 31, 2025	Increase/(Decrease)
			Amount	%
Liabilities:
Long Term Borrowings	823.51	1,423.31	(599.80)	(42.14)%
Short Term Borrowings	15,695.18	8,688.11	7,007.07	80.65%
Trade Payables	2,873.38	1,558.09	1,315.29	84.42%
Assets: -
Inventories	14,021.70	7,413.90	6,607.80	89.13%
Trade Receivables	6,426.48	3,580.43	2,846.05	79.49%

Long Term Borrowings:

Long-term borrowings decreased by Rs.599.80 lakhs i.e. 42.14%, from Rs.1,423.31 lakhs in fiscal 2025 to Rs.823.51 lakhs in fiscal 2026. This decline is due to repayment of term loans from Banks and other Financial Institutions.

Short Term Borrowings:

Short-term borrowings increased by Rs.7,007.07 lakhs, a 80.65% rise from Rs.8,688.11 lakhs in Fiscal 2025 to Rs.15,695.18 lakhs in Fiscal 2026. This increase was driven by higher working capital requirements to support business operations. During FY 2025, the company borrowed an additional Rs.6,006.44 lakhs (net of repayment) from banks and financial institutions and Rs.904.33 lakhs (unsecured loans) from others, of which Rs.1,708.65 lakhs was from related parties while repaid Rs.804.32 Lakhs of inter corporate borrowings. These borrowings have enabled the company to maintain liquidity, support operational growth.

Current maturities of long-term debt stood at Rs.616.95 lakhs in FY 2026, as against Rs.520.65 lakhs in FY 2025, reflecting the portion of long-term borrowings due within one year.

Trade Payables:

Trade payables increased by Rs.1,315.29 lakhs, from Rs.1,558.09 lakhs in FY 2025 to Rs.2,873.38 lakhs in FY 2026, driven by higher procurement to support expanded production. The trade payables days remained flat at 21 days in FY 2026 and FY 2025, reflecting the commitment of the Company towards faster settlement of its supplier obligations.

Particulars	For Financial Year March 31, 2026	For Financial Year March 31, 2025	Change
Trade Payables - Holding period in Days	21	21	Nil

Note: Trade Payable days = Average Trade Payables divided by Credit Purchases per day; No of days =365 days. Inventories:

(Z in Lakhs)

Particulars	For the financial year ended March 31, 2026	For the financial year ended March 31, 2025	Increase/(Decrease)
			Amount	%
Raw Material	2,683.65	786.12	1,897.53	241.38
Work in Progress	481.89	745.98	(264.09)	(35.40)
Finished Goods	4,965.24	3,477.44	1,487.80	42.78
Scrap	0.78	9.97	(9.19)	(92.18)
Trading Goods	5,890.14	2,240.78	3,649.36	162.86
Stock in Transit	-	153.61	(153.61)	(100.00)
Total	14,021.70	7,413.90	6,607.80	89.13

 

			(No. in days)
Inventory Holding Days	For Financial Year March 31, 2026	For Financial Year March 31, 2025	Change
Raw Material	20	9	11
Work in Progress	7	10	(3)
Finished Goods	50	42	8
Scrap	-	-	-
Trading Goods	48	34	14
Stock in Transit	1	2	(1)
Total Inventory Turnover	126	97	29

Note: Inventory Turnover days = Average Inventory divided by Cost of Goods Sold per Day; No of days =365 days

As on March 31, 2026, the Company’s total inventory stood at Rs.14,021.70 Lakhs as compared to Rs.7,413.90 Lakhs as of March 31, 2025, representing an increase of Rs.6,607.80 Lakhs or 89.13% year-on-year. The increase was mainly on account of Raw Materials, Finished Goods and Trading Goods. The inventory holding days increased to 126 days in FY 2026 against 97 days in FY 2025 primarily due to higher inventory levels across raw materials, finished goods, and trading goods. The Raw Material holding period increased from 9 days in FY 2025 to 20 days in FY 2026 to mitigate supply chain disruptions. Finished Goods holding period increased from 42 days in FY 2025 to 50 days, driven by planned inventory buildup to support product availability and moderation in inventory take-off. Trading Goods inventory holding days increased from 34 days in FY 2025 to 48 days in FY 2026, reflecting a higher inventory position maintained to support market requirements and product availability across distribution channels.

Trade Receivables

(Z in Lakhs)

Particulars	For the Financial Year ended March 31, 2026	For the financial year ended March 31, 2025	Increase/(Decrease)
			Amount	%
Outstanding for a period exceeding six months	729.23	9.79	719.44	7,348.72%
Outstanding for a period not exceeding six months	5,697.25	3,570.64	2,126.61	59.56%
Total Trade Receivables	6,426.48	3,580.43	2,846.05	79.49%

Trade receivables increased by t2,846.05 lakh, or 79.49%, from t3,580.43 lakh as at March 31, 2025 to t6,426.48 lakh as at March 31, 2026. Receivables outstanding for a period not exceeding six months increased by t2,126.61 lakh, or 59.56%, from t3,570.64 lakh as at March 31, 2025 to t5,697.25 lakh as at March 31, 2026. Receivables outstanding for a period exceeding six months increased by t719.44 lakh, from t9.79 lakh as at March 31, 2025 to t729.23 lakh as at March 31, 2026.

Trade receivable days in FY 2026 increased to 49 days from 47 days in FY 2025 due to growth in revenue from operations during Fiscal 2026 and the timing of collections from customers at the end of the reporting period.

Particulars	March 31, 2026	March 31, 2025	Change
Trade Receivables - Holding Period in Days	49	47	2

Note: Trade Receivables days = Average Trade Receivables divided by Revenue from Operations multiplied by Number of Days; No of days = 365 days.

COMPARISION OF FINANCIAL YEAR ENDED MARCH 31, 2025 TO FINANCIAL YEAR ENDED MARCH 31, 2024

Detailed comparison of the principal components of the Statement of Assets and Liabilities for the financial year ended March 31, 2025 as against the financial year ended March 31, 2024 are provided below:

(Z in Lakhs)

Particulars	For the financial year ended March 31, 2025	For the financial year ended March 31, 2024	Increase/(Decrease)
			Amount	%
Liabilities:
Long Term Borrowings	1,423.31	3,104.99	(1,681.68)	(54.16)%
Short Term Borrowings	8,688.11	5,230.24	3,457.87	66.11%
Trade Payables	1,558.09	1,271.44	286.65	22.55%
Assets: -
Inventories	7,413.90	3,949.57	3,464.33	87.71%
Trade Receivables	3,580.43	3,143.00	437.43	13.92%

Long Term Borrowings:

Long-term borrowings decreased by t1,681.68 lakhs i.e. 54.16%, from t3,104.99 lakhs in fiscal 2024 to t1,423.31 lakhs in fiscal 2025. This decline is due to the conversion of 1,800 0.1% Compulsory Convertible Debentures of face value of t1,00,000/- each, amounting to t 1,800 lakhs, carrying an interest cost of 0.1% per annum, into equity shares during the fiscal 2025 as per the terms of the compulsory convertible debentures agreed upon between the Company and the holders of the aforesaid debentures. This conversion reduced borrowings without cash outflow. Further, the company has repaid term loans to the tune of t 236.33 lakhs during FY 2025 which led to a 25.05% reduction in long-term borrowings from banks and financial institutions as compared to FY 2024. However, there was an increase in additional borrowings from SIDBI to the tune of t405.20 lakhs in FY 2025 for installation of 1Mwp Solar Power Plant.

Short Term Borrowings:

Short term Borrowings from banks and financial institutions increased from Rs. 4,023.80 lakhs in FY 2024 to Rs. 7,059.38 lakhs in FY 2025. Further, unsecured loans from others have increased from Rs. 842.96 lakhs in FY 2024 to Rs. 1,108.08 lakhs in FY 2025. Current maturities increased from Rs.363.48 lakhs in FY 2024 to Rs. 520.65 lakhs in FY 2025.

Trade Payables:

Trade payables increased by Rs.286.65 lakhs, from Rs.1,271.44 lakhs in FY 2024 to Rs.1,558.09 lakhs in FY 2025, driven by higher procurement to support expanded production. The trade payables days fell sharply from 83 days in FY 2024 to 21 days in FY 2025, reflecting faster settlement of supplier obligations. This indicates that while the company is sourcing more to meet production needs, it is managing cash outflows.

Particulars	For Financial Year March 31, 2025	For Financial Year March 31, 2024	Change
Trade Payables - Holding period in Days	21	84	(64)

Note: Trade Payable days = Average Trade Payables divided by Credit Purchases per day; No of days =365 days. Inventories:

The details of inventories are as follows:

		(Z in Lakhs)
Particulars	As at
	31-03-2025	31-03-2024
Raw Materials	786.12	221.67
Work-In-Progress	745.98	417.40
Finished Goods	3,477.44	1,430.85
Scrap	9.97	2.03
Trading Goods	2,240.78	1,764.27
Stock-In-Transit	153.61	113.35
Total	7,413.90	3,949.57

There has been an increase in finished goods from Rs. 1,430.85 lakhs and trading goods from Rs. 1,764 in FY 2024 to Rs. 3,477.44 lakhs and Rs. 2,240.78 lakhs in FY 2025 respectively Further, Stock-in-transit has increased from Rs.113.35 lakhs in FY 2024 to Rs. 153.61 lakhs in FY 2025. Raw material inventories and work in progress also increased in FY 2025 as against FY 2024.

Trade Receivables

(Z in Lakhs)

Particulars	For the financial year ended March 31, 2025	For the financial year ended March 31, 2024	Increase/(Decrease)
			Amount	%
Outstanding for a period exceeding six months	9.79	318.18	(308.49)	(96.92)
Outstanding for a period not exceeding six months	3,570.64	2,824.82	745.82	26.40
Total Trade Receivables	3,580.43	3,143.00	437.43	13.92

Receivables outstanding for a period exceeding six months declined from Rs.318.18 Lakhs as of March 31, 2024, to Rs.9.79 Lakhs as of March 31, 2025. This reduction is due to Company’s focus on prudent credit policies, monitoring of receivables, and improved collection from customers.

Conversely, receivables outstanding for a period not exceeding six months increased to Rs.3,570.64 Lakhs as of March 31, 2025, from Rs.2,824.82 Lakhs in the previous year, which is in line with growth in business volumes. Trade receivable days in FY 2025 declined to 47 days against 103 days in FY 2024.

Particulars	March 31, 2025	March 31, 2024	Change
Trade Receivables - Holding Period in Days	47	103	(56)

Note: Trade Receivables days = Average Trade Receivables divided by Revenue from Operations multiplied by Number of Days; No of days = 365 days.

PRINCIPLE COMPONENTS OF THE STATEMENT OF PROFIT AND LOSS Total Income

Our total Income comprises of:

A. Revenue from operations: Revenue from operations consists of sale of products. Sale of products consists of traded goods and manufacturing goods. The other operational income is from commission the company receives for referral of clients to other companies for various works and recovery of sponsorship amount.

B. Other Income: Other income consists mainly of interest income, subsidy levied, foreign currency fluctuation etc.

Total Expenses

Our total expenses comprise of Cost of material consumed, Purchase of Stock-In-Trade, Change in inventories, Employee Benefit Expense, Finance Costs, Depreciation & Amortization Expense and Other Expenses.

Cost of Material Consumed:

Cost of Material Consumed includes raw material consumed and purchase of stock in trade.

Purchase of Stock-In-Trade It includes purchases of trading stock.

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 represents the changes between the opening and closing inventories of Finished Goods, Work in Progress and Stock in trade.

Employee Benefit Expense

It includes Salaries and wages, Contribution of Provident, Provision for gratuity, ESI, and staff welfare Encashment.

Interest Cost

It includes Interest expenses and other charges.

Depreciation and Amortization Expenses

It includes Depreciation and amortisation expenses. We recognize Depreciation and Amortization expense on a SLM basis as per provisions of the Companies Act, 2013.

Other Expenses

Other expenses include consumption of stores and spares, power and fuel, other factory overhead expenses, import related expenses, administrative expenses, Legal and Professional fees, rent, Rates and Taxes and Selling expenses.

RESULTS OF OUR OPERATIONS

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

						(Z in lakhs)
Particulars	For the Financial Year Ended 31st March, 2026	% of Total Income	For the Financial Year Ended 31st March, 2025	% of Total Income	For the Financial Year Ended 31st March, 2024	% of Total Income
Revenue:
Revenue from Operation	37,553.13	99.92%	26,147.73	99.86%	10,904.79	99.32%
Other Income	30.31	0.08%	37.62	0.14%	74.75	0.68%
Total Income	37,583.44	100.00%	26,185.35	100.00%	10,979.54	100.00%
Expenses:
Cost of Materials Consumed	14,633.35	38.94%	11,031.31	42.13%	5,187.65	47.25%
Purchase of Stock in trade	21,103.75	56.15%	13,467.64	51.43%	3,684.08	33.55%
Changes in inventories of finished goods, work in progress & trade goods	(4,710.27)	(12.53)%	(3,013.23)	(11.51) %	(624.52)	(5.69)%
Employee benefits expense	401.77	1.07%	217.13	0.83%	147.72	1.35%
Finance cost	1,228.29	3.27%	944.80	3.61%	623.05	5.67%
Depreciation and Amortisation exp	261.60	0.70%	230.06	0.88%	192.49	1.75%
Other expenses	2,320.15	6.17%	2,188.02	8.36%	1,275.05	11.61%
Total Expenses	35,238.64	93.76%	25,065.71	95.72%	10,485.52	95.50%
Profit Before Exceptional & Extraordinary Item & Tax	2,344.80	6.24%	1,119.62	4.28%	494.02	4.50%
Exceptional/Prior Period Items	-	-	-	-	-	-
Profit Before Tax	2,344.80	6.24%	1,119.62	4.28%	494.02	4.50 %
Tax Expense
(a) Current Tax	609.64	1.62%	194.15	0.74%	82.92	0.76 %
(b) MAT Entitlement	72.71	0.19%	55.00	0.21%	(68.48)	(0.62) %
(c) Income tax for earlier years	1.12	0.00%	3.48	0.01%	0.50	0.00
(d) Interest on TDS	0.19	0.00%	0.00	0.00%	0.04	0.00
(e) Deferred Tax (Credit)/Charge	59.86	0.16%	56.06	0.21%	34.68	0.32%
Total Tax Expenses	743.52	1.98%	308.69	1.18%	49.66	0.45%
Profit / (Loss) For the Year	1,601.28	4.26%	810.93	3.10%	444.36	4.05%

COMPARISON OF FINANCIAL YEAR ENDED MARCH 31,2026 TO FINANCIAL YEAR ENDED MARCH 31,2025

INCOME

Total Income:

Our total income has increased by 43.53% from Rs. 26,185.35 Lakhs in FY 2025 to Rs. 37,583.44 Lakhs in FY 2026 due to the factors described below:

A. Revenue from Operations:

Our Revenue from Operations increased by 43.62% in the year FY 2026 as compared to FY 2025. The Company’s revenue from operations increased from Rs.26,147.73 lakhs in FY 2024-25 to Rs.37,553.13 lakhs in FY 2025-26. Our Revenue from Operations consist of Revenue from manufacturing of PP Fabrics, Woven Sacks as well as Trading Activity of Plastic granules and PVC Resins.

The Revenue Mix from Operations for financial Year 2026 and Financial Year 2025 are as follows: -

(7 in lakhs)

Particulars	For F.Y. ended March 31, 2026	% of Total Revenue from Operations	For F.Y. ended March 31, 2025	% of Total Revenue from Operations
Revenue from Trading Activity	18,912.21	50.36%	13,908.92	53.19%
Revenue from Manufacturing Activity	18,640.92	49.64%	12,238.81	46.81%
Total Revenue from Operations	37,553.17	100.00%	26,147.73	100.00%

Increase/Decrease in Operating Revenue in FY 2026 vis a vis 2025:

			(Rs. in lakhs)
Particulars	For the Financial Year ended March 31, 2026	For the Financial Year ended March 31, 2025	% Increase/ (Decrease) YoY
Domestic Sales - manufacturing	18,640.92	12,238.81	52.31%
Domestic Sales -Trading	18,912.21	13,908.92	35.97%
Total	37,553.13	26,147.73	43.62%

Our revenue from operations increased by Rs.11,405.40 lakhs, or 43.62%, from Rs.26,147.73 lakhs in FY 2025 to Rs.37,553.13 lakhs in FY 2026. This growth was driven by strong performance across both manufacturing and trading verticals, with the manufacturing segment continuing to serve as the operational backbone of the business.

• Manufacturing Revenue, constituting 49.64% of total revenue from operations in FY 2026 (vs. 46.81% in FY 2025), reflecting increased demand for the products of the Company. Manufacturing revenue showed an increase of 52.31% YoY increase in FY 2026 vis a vis FY 2025.

• Trading segment exhibited a sharp increase in revenue, rising 35.97% YoY as the Company reaped benefit of a strengthened procurement network and robust market demand coupled with increased price of traded goods.

B. Other Income

Other income decreased by 19.43% from Rs. 37.62 Lakhs in FY 2025 to Rs. 30.31 Lakhs in FY 2026 because of the following reasons: -

i. Loss on foreign exchange fluctuations of Rs. 25.97 lakhs was registered during the year.

ii. A one-time other income of Rs. 17.40 lakhs and Interest on Fixed Deposits of Rs. 38.88 lakhs was booked during the financial year ended March 31, 2026.

EXPENDITURE

Cost of Material Consumed and Purchase of Stock in Trade

The cost of material consumed and purchases of stock in trade are critical components of our total operating expenses. These reflect the input costs directly attributable to our manufacturing and trading operations. The following table sets forth the details for the fiscal years ended March 31, 2026 and March 31, 2025:

A) Cost of Material Consumed:

			(Rs. in Lakhs)
Particulars	For the Financial Year ended March 31, 2026	For the Financial Year ended March 31, 2025	%Increase/ (Decrease)
Opening Stock of Raw Material	786.12	221.67	254.64%
Add: Purchases of Raw Material	16,530.88	11,595.76	42.56%
Less: Closing Stock of Raw Material	2,683.65	786.12	241.38%
Total Cost of Material Consumed	14,633.35	11,031.31	32.65%

The cost of material consumed increased from Rs.11,031.31 Lakhs in Fiscal 2025 to Rs.14,633.35 lakhs in Fiscal 2026, reflecting an increase of Rs.3,602.04 lakhs i.e., 32.65%.

The increase was primarily driven by higher raw material purchases, which rose by 42.56% to Rs.16,530.88 lakh, reflecting increased production activity and business volumes during the year. Opening inventory also increased significantly to Rs.786.12 lakh from Rs.221.67 lakh in the previous year. However, the impact of higher purchases was partially offset by a substantial increase in closing inventory to Rs.2,683.65 lakh, indicating higher stock levels maintained at year-end. Consequently, the overall material consumption increased in line with the growth in operations.

B) Purchase of Stock in Trade:

		(Rs. in Lakhs)
Particulars	For the Financial Year ended March 31, 2026	For the Financial Year ended March 31, 2025
Purchase of Stock in Trade	21,103.75	13,467.64
Total Purchase of Stock of Stock in Trade	21,103.75	13,467.64

The purchase of stock in trade rose sharply from Rs.13,467.64 lakhs in Fiscal 2025 to Rs.21,103.75 lakhs in Fiscal 2026, registering a growth of Rs. 7,636.11 lakhs or 56.70% compared to fiscal 2025.

Changes in inventories of Finished Goods, Work in Progress and Stock in Trade

A) Finished Goods and Work in Progress

in Lakhs)

Particulars	For the Financial Year ended March 31, 2026	For the Financial Year ended March 31, 2025	% Change (YoY)
Opening Finished Goods and WIP (includes scrap)	4,233.39	1,850.28	128.80%
Closing Finished Goods and WIP (includes scrap)	5,447.91	4,233.39	28.69%
Changes in Inventories	(1,214.52)	(2,383.11)	(49.04) %

During the fiscal year 2026, the Company reported an increase of change in inventories of Rs. 1,214.52 lakhs, as compared to a change of Rs. 2,383.11 lakhs in the fiscal year 2025. The increase in the inventory reflects a build-up in closing inventory levels, particularly in finished goods and WIP (including scrap). The closing inventory increased by Rs. 1,214.52 lakhs in FY 2026, vis a vis by Rs. 2,383.11 lakhs in Fiscal 2025, representing a 49.043% year-on-year decline in closing inventory for Fiscal 2025.

B) Stock in Trade

			(Rs. in Lakhs)
Particulars	For the Financial Year ended March 31, 2026	For the Financial Year ended March 31, 2025	% Change (YoY)
Opening Inventories	2,394.39	1,764.27	35.72
Closing Inventories	5,890.14	2,394.39	146.00
Changes in Inventories	(3,495.75)	(630.12)	454.78

During FY26, the Company reported closing inventories of Rs.3,495.75 Lakhs as compared to 630.12 lakhs in FY25, representing a 35.72% increase year-on-year. Opening inventories for FY26 stood at Rs.2,394.39 Lakhs significantly higher than Rs.1,764.27 Lakhs in the previous year, reflecting the carryover of unsold stock from FY25.

Employee Benefit Expenses

in Lakhs)

Particulars	For the Financial Year ended March 31, 2026	For the Financial Year ended March 31, 2025	% Change
Salaries and Wages	271.32	196.92	37.78
Directors’ Remuneration	102.00	6.00	1600.00
Contribution to Provident Funds	14.72	7.38	99.46
Provision for Gratuity	5.13	2.60	97.31
Employers State Insurance	6.12	2.63	132.70
Staff Welfare	2.48	1.60	55.00
Total Employee Benefits	401.77	217.13	85.04

During the financial year ended March 31, 2026, the total employee benefits expense increased by Rs.184.64 lakhs or 85.04% to Rs.401.77 lakhs in FY 2026 from Rs.217.13 lakhs in the previous financial year. This increase was primarily due to the following factors:

• Salaries and Wages, increased by Rs.74.40 lakhs or 37.38%, attributable to, expansion in workforce to support business growth, annual increments and performance-linked compensation.

• Directors’ remuneration increased from Rs. 6.00 Lakhs in FY 2025 to Rs. 102.00 Lakhs in FY 2026.

• Contribution to Provident Funds increased from Rs. 7.38 Lakhs in FY 2025 to Rs. 14.72 Lakhs in FY 2026.

Interest Cost

				(Z in Lakhs)
Particulars	For the Financial Year ended March 31, 2026	For the Financial Year ended March 31, 2025	Absolute Change	% Change
Interest on Working Capital Loans	745.00	443.82	301.18	67.86
Interest on Term Loans	154.20	173.13	(18.93)	(10.93)
Interest on Debenture	-	1.73	(1.73)	(100.00)
Interest on Unsecured Loans	106.97	93.82	13.15	14.02
Total Interest Cost	1,006.17	712.50	293.67	41.22

Total Interest Cost increased by Rs. 293.67 lakhs in fiscal 2026 compared to fiscal 2025, representing an increase of 41.22%.

This is mainly due to the following:

• Interest Cost on working capital facilities increased by Rs.301.18 lakhs in fiscal 2026 compared to fiscal 2025, representing an increase of 67.86% due to enhanced utilization of sanctioned limits to meet higher operational requirements, driven by capacity expansion during the year and incremental short-term borrowings to support the working capital requirements of the Company.

• Interest on unsecured loans increased by Rs.13.15 lakhs in fiscal 2026 compared to fiscal 2025, representing an increase of 14.02% as the Company has relied on short-term borrowings from group entities and financial institutions without collateral.

Depreciation and Amortization Expenses

(Z in Lakhs)

Particulars	For the Financial Year ended March 31, 2026	For the Financial Year ended March 31, 2025	Absolute Change	% Change
Depreciation and Amortization Expenses	261.60	230.06	31.54	19.52%
Total	261.60	230.06	31.54	19.52%

Depreciation and amortization expenses have increased by Rs.31.54 lakhs in fiscal 2026 compared to fiscal 2025, clocking an increase of 19.52% due to rise in the depreciable base of assets in fiscal 2026.

Other Expenses

(Z in Lakhs)

Particulars	For the Financial Year ended March 31, 2025	For the Financial Year ended March 31, 2024	Absolute Change	% Change
Consumption of Stores & Spares	575.58	570.57	5.01	0.88%
Power & Fuel	718.66	719.23	-0.57	(0.08)%
Other Factory Overhead Expenses	85.06	60.15	24.91	41.41%
Import Related Expenses	401.68	106.40	295.28	277.52%
Auditors Remuneration	1.00	1.00	-	-
Insurance Expenses	25.10	12.64	12.46	98.58%
Administration Expenses	26.36	20.69	5.67	27.40%
Legal & Professional Fees	30.42	19.37	11.05	57.05%
CSR Expenses	9.80	-	9.8	-
Rent	83.35	75.26	8.09	10.75%
Rates & Taxes	14.74	66.63	(51.89)	(77.88)%
Selling Expenses	348.40	536.08	(187.68)	(35.01)%
Total	2,320.15	2,188.02	132.13	6.04%

During the financial year ended March 31, 2026, our total operating expenses stood at Rs.2,320.15 Lakhs, representing a significant increase of 6.04% as compared to Rs.2,188.02 Lakhs in the previous financial year. The increase was broad- based across several expense categories, with certain heads showing growth due to operational scale-up and higher business activity.

Key expense movements are as follows:

• Other Factory Overhead Expenses grew by 41.41% to Rs.85.06 Lakhs, driven by higher factory-level operational activities.

• Import Related Expenses witnessed an increase of 277.52% from Rs.106.40 Lakhs in FY 2025 to Rs.401.68 Lakhs in FY 2026, attributable to increased reliance on imported inputs and adverse foreign exchange fluctuations.

• Insurance Expenses increased to Rs.25.10 Lakhs, because of expansion in the asset base and higher insurance premium costs.

• Legal & Professional fees increased to Rs.30.42 Lakhs, because of expansion in the asset base and higher insurance premium costs

• Rent rose by 10% to Rs.83.35 Lakhs in FY 2026 vis a vis Rs. 75.26 lakhs in FY 2025.

• Rates & Taxes declined to Rs.14.74 Lakhs in FY 2026 as against Rs.66.63 Lakhs in FY 2025.

• Selling Expenses declined from Rs.536.08 Lakhs in FY 2025 from Rs.348.40 Lakhs in FY 2025, representing a decline of 35.01%.

• Auditor’s Remuneration was unchanged at Rs.1.00 Lakhs.

Going forward, the Company remains focused on operational efficiencies, prudent cost management, and optimizing resource utilization to ensure that expense growth remains aligned with revenue expansion.

Profit before Tax:

Our Profit Before Tax (PBT) increased to Rs.2,344.80 lakhs in Fiscal 2026 from Rs.1,119.62 lakhs in Fiscal 2025, representing an increase of Rs.1,225.18 lakhs or 109.43%. The increase in profits before tax is primarily attributable to the corresponding increase in revenue from operations, which registered a substantial growth of 43.62% in fiscal 2025.

Tax Expenses

Our total tax expenses for the fiscal year ended March 31, 2026, stood at Rs.743.52 lakhs, as compared to Rs.308.69 lakhs for the fiscal year ended March 31, 2025. This represents an increase of Rs.434.83 lakhs or 140.86% on a year-on-year basis. The rise in tax expenses is attributable to improved profitability during the year, leading to higher taxable income and consequently higher current tax liability.

Profit after Tax

Our Profit After Tax (PAT) increased to Rs.1,601.28 lakhs in fiscal 2026, compared to Rs.810.93 lakhs in fiscal 2025, reflecting strong growth in profitability. The key attributes for the growth in Profits After Tax are as follows:

1. Growth in Revenue from Operations

2. Efficient Cost Management

3. Improved Operating Margins

COMPARISON OF FINANCIAL YEAR ENDED MARCH 31, 2025 TO FINANCIAL YEAR ENDED MARCH 31, 2024

INCOME

Total Income:

Our total income has increased by 138.49% from Rs. 10,979.54 Lakhs in FY 2024 to Rs. 26,185.35 Lakhs in FY 2025 due to the factors described below:

A. Revenue from Operations:

Our Revenue from Operations increased by 139.78% in the year FY 2025 as compared to FY 2024. The Company’s revenue from operations increased from Rs.10,904.79 lakhs in FY 2023-24 to Rs.26,147.73 lakhs in FY 2024-25. Our Revenue from Operations consist of Revenue from manufacturing of PP Fabrics, Woven Sacks as well as Trading Activity of Plastic granules and PVC Resins.

The Revenue Mix from Operations for financial Year 2025 and Financial Year 2024 are as follows: -

(Rs. in lakhs)

Particulars	For F.Y. ended March 31, 2025	% of Total Revenue from Operations	For F.Y. ended March 31, 2024	% of Total Revenue from Operations
Revenue from Trading Activity	13,908.92	53.19%	3,015.20	27.65%
Revenue from Manufacturing Activity	12,238.81	46.81%	7,889.59	72.35%
Total Revenue from Operations	26,147.73	100.00%	10,904.79	100.00%

Increase/Decrease in Operating Revenue in FY 2025 vis a vis 2024:

			(Rs. in lakhs)
Particulars	For the Financial Year ended March 31, 2025	For the Financial Year ended March 31, 2024	% Increase / (Decrease) YoY
Domestic Sales - manufacturing	12,238.81	7,889.59	55.13%
Domestic Sales -Trading	13,908.92	3,015.20	361.29%
Total	26,147.73	10,904.79	139.78%

Our revenue from operations increased by Rs.15,242.94 lakhs, or 139.78%, from Rs.10,904.79 lakhs in FY 2024 to Rs.26,147.73 lakhs in FY 2025. This growth was driven by strong performance across both manufacturing and trading verticals, with the manufacturing segment continuing to serve as the operational backbone of the business.

• Manufacturing Revenue, constituting 46.81% of total revenue in FY 2025 (vs. 72.35% in FY 2024), registered a robust growth of 55.13%, reflecting increased capacity utilization, process optimization, and steady demand across core product lines such as Polypropylene Woven Fabrics and Bags, because of addition of plant capacity in June 2024 of one of our Group Companies, Hind Polyfabs Private Limited, whose plants have been taken on a leave and license basis.

• While the Trading segment exhibited a sharp increase in revenue, rising 361.29% YoY as the Company strengthened its procurement network, enabling sourcing of a wider range of products from both domestic and international suppliers, supported by robust market demand. The Company could also cater to new customers with its expanded distribution of Plastic Granules and PVC Resins resulted in higher trading volumes and revenue.

B. Other Income

Other income decreased by 49.67% from Rs. 74.75 Lakhs in FY 2024 to Rs. 37.62 Lakhs in FY 2025 because of the following reasons: -

i. No subsidy was received in the financial year ended March 31, 2025 as against Rs. 50.35 Lakhs received in the financial year ended March 31, 2024 as the Government of West Bengal (where the manufacturing facilities of the Company are situated) has withdrawn all subsidy schemes for our Industry.

ii. A one-time income of Rs. 6.30 lakhs from rate difference was registered in the financial year ended March 31, 2024.

iii. Interest on Fixed Deposits has increased to Rs. 31.16 lakhs in financial year ended March 31, 2025 as against Rs. 11.03 Lakhs in the financial year ended March 31, 2024.

EXPENDITURE

Cost of Material Consumed and Purchase of Stock in Trade

The cost of material consumed and purchases of stock in trade are critical components of our total operating expenses.

These reflect the input costs directly attributable to our manufacturing and trading operations. The following table sets forth the details for the fiscal years ended March 31, 2025, and March 31, 2024:

A) Cost of Material Consumed:

The revenue breakup of the Company is as follows:

in Lakhs)

Particulars	For F.Y. ended March 31, 2025	% of Total Revenue from Operations	For F.Y. ended March 31, 2024	% of Total Revenue from Operations
Revenue from Trading Activity	13,908.92	53.19%	3,015.20	27.65%
Revenue from Manufacturing Activity	12,238.81	46.81%	7,889.59	72.35%
Total Revenue from Operations	26,147.73	100.00%	10,904.79	100.00%

The cost of material consumed and purchase of stock in trade and Changes in inventories of finished goods, work in progress & trade goods is as below:

(Z in Lakhs)

Particulars	For the Financial Year Ended 31st March, 2025	% of Total Income	For the Financial Year Ended 31st March, 2024	% of Total Income
Cost of Materials Consumed	11,031.31	42.13%	5,187.65	47.25%
Purchase of Stock in trade	13,467.64	51.43%	3,684.08	33.55%
Changes in inventories of finished goods, work in progress & trade goods	(3,013.23)	(11.51)%	(624.52)	(5.69)%

In FY 2025 the cost of materials consumed stood at t 11,031.31 lakhs as against a revenue from manufacturing activity of t. 12,238.81 In FY 2024, the cost of materials consumed stood at t 5,187.65 lakhs as against a revenue from manufacturing activity of t 7,889.59 lakhs. Further, the cost of materials consumed as adjusted for change in inventories for the respective periods was t 8,018.08 lakhs and t 4,406.81 lakhs respectively.

This increase was driven by an increase in raw material purchases on account of a scale-up in manufacturing operations on account of increased installed capacity due to addition of plant capacity in June 2024 of one of our Group Companies on a leave and license basis.

The above movements in opening stock, purchases, and closing stock during the respective periods have resulted in corresponding variations in the cost of material consumed.

B) Purchase of Stock in Trade:

Increase in Purchase of Stock in Trade

		(Z in Lakhs)
Particulars	For the FY ended
	31-03-2025	31-03-2024
Indigenous	10,835.87	2,653.97
Imported (CIF Value)	2,631.87	1,030.11
Total	13,467.64	3,684.08

There has been an increase in purchase of indigenous and imported goods from 2,653.97 lakhs in FY 2024 to t 10,835.87 lakhs in FY 2025 and from t 1,030.11 lakhs in FY 2024 to t 2,631.87 lakhs in FY 2025respectively.

Changes in inventories of Finished Goods, Work in Progress and Stock in Trade

C) Finished Goods and Work in Progress

(t in Lakhs)

Particulars	For the Financial Year ended March 31, 2025	For the Financial Year ended March 31, 2024	% Change (YoY)
Opening Finished Goods and WIP	1,850.28	2,239.02	(17.36)%
Closing Finished Goods and WIP	4,233.39	1,850.28	128.80%
Changes in Inventories	(2,383.11)	388.74	(713.03)%

During the fiscal year 2025, the Company reported a negative change in inventories of t 2,383.11 lakhs, as compared to a change of t 388.74 lakhs in the fiscal year 2024. The increase in the inventory reflects a build-up in closing inventory levels, particularly in finished goods and WIP. The closing inventory increased by t 2,383.11 lakhs in FY 2025, compared to a decline by t 388.74 lakhs in Fiscal 2024, representing a 713.03% year-on-year increase in closing inventory for Fiscal 2025, which shows the confidence of our management in the company’s growth trajectory and market positioning.

D) Stock in Trade

(t in Lakhs)

Particulars	For the Financial Year ended March 31, 2025	For the Financial Year ended March 31, 2024	% Change (YoY)
Opening Inventories	1,764.27	751.00	134.92%
Closing Inventories	2,394.39	1,764.27	35.72%
Changes in Inventories	(630.12)	(1,013.27)	(37.81) %

During FY25, the Company reported closing inventories of Rs.2,394.39 Lakhs as compared to Rs.1,764.27 lakhs in FY24, representing a 35.72% increase year-on-year. Opening inventories for FY25 stood at Rs.1,764.27 Lakhs significantly higher than Rs.751.00 Lakhs in FY 2024, reflecting the carryover of unsold stock from FY24.

The change in inventories for FY25 was Rs. (630.12) Lakhs, compared to Rs.(1,013.27) lakhs in FY24. While both years reflect an increase in inventories, the lower build-up in FY25 indicates improved sales absorption and better inventory management. This translated into a reduced negative impact on profitability as compared to FY24.

The moderation in inventory build-up suggests that demand conditions were stronger in FY25 relative to the previous year, enabling the Company to convert a larger proportion of production into sales. This not only supports reported profitability but also contributes positively to working capital efficiency.

Employee Benefit Expenses

(Z in Lakhs)

Particulars	For the Financial Year ended March 31, 2025	For the Financial Year ended March 31, 2024	% Change
Salaries and Wages	196.92	136.02	44.77%
Director Remuneration	6.00	-	100.00%
Contribution to Provident Funds	7.38	6.36	16.04%
Provision for Gratuity	2.60	2.72	(4.41%)
Employers State Insurance	2.63	2.27	15.86%
Staff Welfare	1.60	0.35	357.14%
Total Employee Benefits	217.13	147.72	46.99%

During the financial year ended March 31, 2025, the total employee benefits expense increased by Rs.69.41 lakhs or 46.99% to Rs.217.31 lakhs from Rs.147.72 lakhs in the previous financial year. This increase was primarily due to the following factors:

• Salaries and Wages, increased by Rs.60.90 lakhs or 44.77%, attributable to, expansion in workforce to support business growth, annual increments and performance-linked compensation.

Interest Cost

(Z in Lakhs)

Particulars	For the Financial Year ended March 31, 2025	For the Financial Year ended March 31, 2024	Absolute Change	% Change
Interest on Working Capital Loans	443.82	299.82	144.00	48.02%
Interest on Term Loans	173.13	163.06	10.07	6.18%
Interest on Debenture	1.73	1.95	(0.22)	(11.28) %
Interest on Unsecured Loans	93.82	69.96	23.86	34.11%
Total Interest Cost	712.50	534.79	177.71	33.23%

Total Interest Cost increased by Rs. 177.71 lakhs in fiscal 2025 compared to fiscal 2024, representing an increase of 33.23%.

This is mainly due to the following:

• Interest Cost on working capital facilities increased by Rs.144.00 lakhs in fiscal 2025 compared to fiscal 2024, representing an increase of 48.02% due to enhanced utilization of sanctioned limits to meet higher operational requirements, driven by capacity expansion during the year and incremental short-term borrowings to support the working capital requirements of the Company.

• Interest on term Loan increased by Rs.10.07 Lakhs, representing an increase of 6.18% in fiscal 2025 compared to fiscal 2024.

• Interest on unsecured loans increased by Rs.23.86 lakhs in fiscal 2025 compared to fiscal 2024, representing an increase of 34.11% as the Company has relied on short-term borrowings from group entities and financial institutions without collateral.

• Marginal decline in interest expenses on debentures was due to conversion of debentures on 24^th of March, 2025 into equity shares.

Depreciation and Amortization Expenses

				(Z in Lakhs)
Particulars	For the Financial Year ended March 31, 2025	For the Financial Year ended March 31, 2024	Absolute Change	% Change
Depreciation and Amortization Expenses	230.06	192.49	37.57	19.52%
Total	230.06	192.49	37.57	19.52%

Depreciation and amortization expenses has increased by Rs.37.57 lakhs in fiscal 2025 compared to fiscal 2024, clocking an increase of 19.52% due to rise in the depreciable base of assets in fiscal 2025. The increase is consistent with a growing asset base and reflects the company’s ongoing investments in installed capacity.

Other Expenses

(Z in Lakhs)

Particulars	For the Financial Year ended March 31, 2025	For the Financial Year ended March 31, 2024	Absolute Change	% Change
Consumption of Stores & Spares	570.57	482.89	87.68	18.16%
Power & Fuel	719.23	595.84	123.39	20.71%
Other Factory Overhead Expenses	60.15	34.18	25.97	75.98%
Import Related Expenses	106.40	21.05	85.35	405.46%
Auditors Remuneration	1.00	1.00	0.00	0.00%
Insurance Expenses	12.64	6.91	5.73	82.92%
Administration Expenses	20.69	14.92	5.77	38.67%
Legal & Professional Fees	19.37	19.17	0.20	1.04%
Rent	75.26	13.84	61.42	443.79%
Rates & Taxes	66.63	1.24	65.39	5273.39%
Selling Expenses	536.08	84.01	452.07	538.11%
Total	2,188.02	1,275.05	912.97	71.60%

During the financial year ended March 31, 2025, our total operating expenses stood at Rs.2,188.02 Lakhs, representing a significant increase of 71.60% as compared to Rs.1,275.05 Lakhs in the previous financial year. The increase was broad- based across several expense categories, with certain heads showing growth due to operational scale-up and higher business activity.

Key expense movements are as follows:

• Consumption of Stores & Spares increased by 18.16% from Rs.482.89 Lakhs in FY 2024 to Rs.570.57 Lakhs in FY 2025. This increase was on account of higher production volumes and increased maintenance requirements.

• Power & Fuel expense rose by 20.71% i.e., Rs.719.23 Lakhs in FY 2025, from Rs.595.84 Lakhs in FY 2024, reflecting higher energy costs due to capacity utilization.

• Other Factory Overhead Expenses grew by 75.98% to Rs.60.15 Lakhs, driven by higher factory-level operational activities.

• Import Related Expenses witnessed an increase of 405.46% from Rs.21.05 Lakhs in FY 2024 to Rs.106.40 Lakhs in FY 2025, attributable to increased reliance on imported inputs and adverse foreign exchange fluctuations.

• Insurance Expenses increased to Rs.12.64 Lakhs, because of expansion in the asset base and higher insurance premium costs.

• Administration Expenses increased by 38.67% from Rs. 14.92 lakhs in FY 2024 to Rs.20.69 Lakhs in FY 2025, in line with the scaling up of our business operations.

• Rent rose substantially by 443.79% to Rs.75.26 Lakhs in FY 2025, mainly due to taking of manufacturing facilities by the company from one of our Group Company - Hind Polyfabs Private Limited, Unit-II at Village Panchpara, P.O. Radhadasi, Andul Road, Howrah, West Bengal - 711317, which was taken on leave and license basis by the Company w.e.f. May 24, 2024.

• Rates & Taxes surged to Rs.66.63 Lakhs as against Rs.1.24 Lakhs in FY 2024, mainly due to statutory levies and assessments during the year. The Company has paid GST penalty of Rs. 61.0 Lakhs during FY 2025.

• Selling Expenses increased to Rs.536.08 Lakhs in FY 2025 from Rs.84.01 Lakhs in FY 2024, representing a growth of 538.11%, in line with higher sales volumes and expanded distribution network. This was mainly due to increase in unloading charges by Rs. 29.75 Lakhs (152.3%), transportation charges by Rs. 37.07 lakhs (68.68%), substantial increase in amount of discounts and claims provided to large customers by Rs. 368.17 Lakhs on accounts of incremental offtake by them and sales promotion expenses of Rs. 13.88 Lakhs (100%) in FY 2025.

• Legal & Professional Fees remained stable at Rs.19.37 Lakhs as compared to Rs.19.17 Lakhs in FY 2024.

• Auditor’s Remuneration was unchanged at Rs.1.00 Lakhs.

Going forward, the Company remains focused on operational efficiencies, prudent cost management, and optimizing resource utilization to ensure that expense growth remains aligned with revenue expansion.

Profit before Tax:

Our Profit Before Tax (PBT) increased to Rs.1,119.62 lakhs in Fiscal 2025 from Rs.494.02 lakhs in Fiscal 2024, representing an increase of Rs.625.60 lakhs or 126.63%. The increase in profits before tax is primarily attributable to the corresponding increase in revenue from operations, which registered a substantial growth of 139.78% in fiscal 2025.

Tax Expenses

Our total tax expenses for the fiscal year ended March 31, 2025, stood at Rs.308.69 lakhs, as compared to Rs.49.66 lakhs for the fiscal year ended March 31, 2024. This represents an increase of Rs.259.03 lakhs or 521.60% on a year-on-year basis. The rise in tax expenses is attributable to improved profitability during the year, leading to higher taxable income and consequently higher current tax liability.

Profit after Tax

Our Profit After Tax (PAT) increased to Rs.810.93 lakhs in fiscal 2025, compared to Rs.444.36 lakhs in fiscal 2024, reflecting strong growth in profitability. The key attributes for the growth in Profits After Tax are as follows:

a) Increase in revenue from operations from Rs.10,904.79 lakhs in FY 2024 to Rs. 26,147.73 lakhs in FY 2025 due to increased revenue from manufacturing and trading activities.

b) Substantial Change in inventory from (780.84) Lakhs in FY 2024 to (3,013.23) lakhs in FY 2025.

c) Increase in EBIDTA margins due to efficient cost management which resulted in lower costs in comparison to the growth in revenue.

d) Improved operating margins (PBT) from Rs. 494.02 lakhs in FY 2024 to Rs.1,119.62 lakhs in FY 2025.

CASH FLOWS

The table below is our cash flows for the financial years ended on March 31, 2026, March 31, 2025 and March 31, 2024:

			(Z in Lakhs)
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
Net cash (used)/from operating activities	(4,880.10)	(1,689.56)	(1,295.23)
Net cash (used)/from investing activities	(307.29)	(944.16)	(291.64)
Net cash (used)/from financing activities	5,178.99	2,631.40	1,584.10

Cash Flows from Operating Activities For the period ended on March 31, 2026

Net cash used in operating activities was Rs.4,880.10 Lakhs, primarily driven by a substantial increase in working capital requirements, particularly increase in inventories by Rs. 6,607.80 Lakhs, increase in trade receivables by Rs. 2,846.05 Lakhs and increase in other current assets by Rs. 590.88 lakhs and increase in Trade payables by Rs.1,315.29 lakhs, increase in other current liabilities by Rs. 231.22 Lakhs and decrease in bank balances other than cash and cash equivalents by Rs. 17.77 lakhs.. While the profit before tax improved to Rs.2,344.80 lakhs, and the operating profit before working capital changes stood at Rs.3,795.81 Lakhs, the elevated inventory build-up significantly impacted cash flows.

For the period ended on March 31, 2025

Net cash used in operating activities was Rs.1,689.56 Lakhs, primarily driven by a substantial increase in working capital requirements, particularly increase in inventories by Rs.3,464.33 Lakhs, increase in trade receivables by Rs.437.43 Lakhs and decrease in other current assets by Rs. 5.64 Lakhs and increase in Trade payables by Rs.286.65 lakhs and increase in other current liabilities by Rs. 89.15 Lakhs. Further there was an increase in Bank Balances other than cash and cash equivalents by Rs.346.19 Lakhs. While the profit before tax improved to Rs.1,119.62 lakhs, and the operating profit before working capital changes stood at Rs.2,263.32 Lakhs, the elevated inventory build-up significantly impacted cash flows. The buildup in the inventories was primarily due to higher raw material procurement owing to manufacturing capacity expansion and stocking of traded goods in anticipation of higher future demand and pricing advantages.

Net cash used in operating activities was Rs.1,295.23 lakhs, primarily driven by an increase in working capital requirements, particularly increase in inventories by Rs. 392.63 Lakhs, increase in trade receivables by Rs.104.49 Lakhs and increase in other current assets by Rs. 562.02 lakhs and decrease inTrade payables by Rs.1389.87 lakhs, increase in in other current liabilities by Rs. 44.24 Lakhs and increase in bank balances other than cash and cash equivalents by Rs. 165.75 lakhs. Operating profit before working capital changes improved to Rs.1,298.53 lakhs, supported by improved profitability across both segments, viz trading and manufacturing. The build-up in inventories, Trade receivables and other current assets used up cash in FY 2024. However, this was significantly offset by the credits extended by the Creditors of the Company and a decline in other current liabilities.

Cash Flows from Investing Activities

For the period ended on March 31, 2026

Net cash used in investing activities during FY 2026 amounted to Rs.307.29 Lakhs. Key components include: (i) Net outflow towards Purchase of property, plant, and equipment of Rs.422.16 lakhs, reflecting upon major capital expenditure towards capacity expansion, (ii) Net inflow of Rs.69.16 Lakhs indicates capital projects reaching completion, with costs transferred to fixed assets and (iii) Interest income of Rs.38.88 lakhs was realized during the year, from fixed deposits maintained for margin/collateral purposes by the Company.

The increase in capital expenditure aligns with the Company’s broader growth strategy, aiming to strengthen manufacturing capacity and build an efficient trading backend.

For the period ended on March 31, 2025

Net cash used in investing activities during FY 2025 amounted to Rs.944.16 Lakhs, representing the highest capital outlay in the three-year period. Key components include: (i) Net outflow towards Purchase of property, plant, and equipment of Rs.1,002.32 lakhs, reflecting upon major capital expenditure towards capacity expansion, modernisation of manufacturing infrastructure and deployment of new technologies, (ii) Net inflow of Rs.50.48 Lakhs indicates capital projects reaching completion, with costs transferred to fixed assets and (iii) Interest income of Rs.31.16 lakhs was realized during the year, from fixed deposits maintained for margin/collateral purposes by the Company.

The substantial increase in capital expenditure aligns with the Company’s broader growth strategy, aiming to strengthen manufacturing capacity and build an efficient trading backend. The completion of CWIP projects also suggests that earlier investments are transitioning into productive use, expected to yield revenue and operational benefits in subsequent years.

For the year ended on March 31, 2024

In FY 2024, net cash used in investing activities stood at Rs.291.64 Lakhs. The investment pattern during this year reflected upon the transitional capex phase, comprising both new investments and continuation of projects initiated earlier by the Company. Key components include:(i) Net outflow towards Purchase of property, plant, and equipment of Rs.283.44 lakhs, primarily toward expansion and maintenance capex in manufacturing operations, (ii) Net outflow of Rs.38.90 lakhs in CWIP owing to ongoing construction and equipment procurement for planned upgrades, and (iii) Interest income of Rs.11.03 lakhs fixed deposits from fixed deposits maintained for margin/collateral purposes by the Company.

FY 2024 was a bridge year for the Company, marked by moderate asset creation while we were preparing for accelerated growth in FY 2025. The mix of ongoing CWIP and asset additions reflects upon our strategy of active project management and phased deployment of investment capital.

Cash Flows from Financing Activities

For the period ended on March 31, 2026

Net cash generated from financing activities during FY 2026 stood at Rs.5,178.99 lakhs, the highest among the reported years, and primarily reflects the Company’s strategy to fund its aggressive growth and working capital requirements. The key components were (i) Increase in short-term borrowings by Rs.7,007.08 lakhs, reflecting upon the Company’s reliance on short term funding for meeting its working capital requirements, (ii) reduction in long term borrowings by Rs. 599.80 lakhs due to repayment, reflecting upon a shift toward reducing leverage duration by the Company and (iv) interest payment of Rs. 1,228.29 Lakhs, which the company counts as financial cost of supporting expansion and aims to optimise over a period of time.

Net cash generated from financing activities during FY 2025 stood at Rs.2,631.40 lakhs, the highest among the reported years, and primarily reflects the Company’s strategy to fund its aggressive growth and working capital requirements. The key components were (i) Equity infusion of Rs.1,800.00 lakhs by conversion of 0.1% Compulsory Convertible debentures into equity shares, (ii) Increase in short-term borrowings by Rs.3,457.88 lakhs, reflecting upon the Company’s reliance on short term funding for meeting its working capital requirements, (iii) repayment of long term borrowings by Rs. 1,681.68 lakhs due to repayment, reflecting upon a shift toward reducing leverage duration by the Company and (iv) interest payment of Rs. 944.80 Lakhs, which the company counts as financial cost of supporting expansion and aims to optimise over a period of time.

For the year ended on March 31, 2024

Net cash generated from financing activities during FY 2024 was Rs.1,584.10 Lakhs. The funding mix focused more on debt-led growth but also included modest equity infusion. The key components were (i) increase in short term borrowings by Rs. 1,933.89 lakhs to meet elevated working capital requirements and to settle outstanding trade payables, (ii) Equity infusion of Rs. 223.04 lakhs by private placement, (iii) increase in long term borrowings by Rs. 50.22 lakhs and (iv) Interest payment of Rs.623.05 lakhs.

RELATED PARTY TRANSACTIONS

Related party transactions with our promoters, 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 no. 209 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, including interest rate risk. We are exposed to interest rate risk, inflation and credit risk in the normal course of our business.

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 monies 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.

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 no. 209 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 Financial Years.

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 ‘Management’s Discussion and Analysis of Financial Conditions and Results of Operations’and the uncertainties described in ‘Risk Factors’ on page no. 256 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 above and in the section titled “Risk Factors” beginning on page no. 21 of this Red Herring Prospectus, 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 above and chapters titled “RiskFactors” and “Our Business” beginning on page no. 21 and 145 of this Red Herring Prospectus, 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 2025-26 compared with financial year 2024-25 and Financial Year 2024-25 compared with Financial Year 2023-24” above.

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 supplier’s vis a vis the total purchases for the financial year ended March 31, 2026, 2025 and 2024 are as follows:

f in Lakhs)

Particulars	For the financial year ended
	March 31, 2026	% of Total Purchases	March 31, 2025	% of Total Purchases	March 31, 2024	% of Total Purchases
Top 1 Supplier	9,363.99	24.88%	9,487.92	37.86%	920.22	10.79%
Top 3 Suppliers	16,810.88	44.67%	12,492.90	49.85%	2,189.65	25.68%
Top 5 Suppliers	21,852.80	58.07%	13,886.50	55.41%	3,094.57	36.29%
Top 10 Suppliers	27,366.50	72.72%	15,774.40	62.94%	4,338.67	50.88%
Total Purchases	37,634.63	100.00%	25,063.40	100.00%	8,526.48	100.00%

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

						(Z in Lakhs)
Particulars	For the financial year ended
	March 31, 2026	% of Revenue from Operations	March 31, 2025	% of Revenue from Operations	March 31, 2024	% of Revenue from Operations
Top 1 Customer	4,316.73	11.49%	4,943.95	18.91%	1,346.97	12.35%
Top 3 Customers	9,515.96	25.34%	6,961.35	26.62%	2,344.58	21.50%
Top 5 Customers	11,457.45	30.51%	8,256.64	31.58%	2,889.96	26.50%
Top 10 Customers	15,046.89	40.07%	10,622.84	40.63%	4,057.07	37.20%
Total Revenue from Operations	37,553.13	100.00%	26,147.73	100.00%	10,904.79	100.00%

Status of any publicly announced new products or business segments

Please refer to the chapter titled “Our Business" beginning on page no. 145 of this Red Herring Prospectus for new products or business segments.

The extent to which the business is seasonal

Our business is not subject to seasonal variations.

Competitive Conditions

Competitive conditions are as described under the Chapters titled “Industry Overview" and “Our Business" beginning on page no. 136 and 145 respectively of this Red Herring Prospectus.