Jakharia Fabric Ltd Management Discussions

The management discussion and analysis report provides an over view of the financial activities for the fiscal year ended on 31st March 2026, gives an overall sight of the textile industry and Companys strategy to deal with that. This report is designed to focus on current years activities, resulting changes and other known facts in conjunction to the financial and strategic position of the Company.

ECONOMIC OVERVIEW GLOBAL ECONOMY

The global economy has faced serious headwinds due to prevailing geopolitical situation reflecting in regressive trade policies and armed confrontation mainly in the world energy supply centres i.e. Middle East. Not only, it resulted in supply side shocks for the exporting countries but high tariff regime has also led to spiral inflation in developed countries namely USA and EU. One of the most inauspicious outcome is also the heightened economic uncertainties linked with ever increasing distrust among economies considered as great allies of all times. Emerging economies dependent upon export market for faster economic growth and creation of employment are facing hardship in containing inflation, protecting employment and keep their manufacturing sector running by minimizing supply side obstacles. Despite of above mentioned facts, in 2025, global GDP growth demonstrated notable resilience amid structural transformations, registering an approximate growth of 3.3%. Going forward, the world economy is likely to slow down marginally and is expected to achieve growth of 3% approximately in 2026.

OUTLOOK

Indias ascent to the fourth-largest economy reflects its resilience and social progress. Despite global challenges, the outlook remains positive, supported by strong domestic investments, expanding manufacturing activities and improvements in trade and finance. GDP growth is expected to stay steady at 6.5%, supported by supportive government policies and accommodative monetary conditions. Important reforms such as the revision of the income tax exemption limit to 12.75 lakh and the recommendations of the 8th Pay Commission are likely to boost disposable income and stimulate domestic consumption. The R BIs anticipated reduction in the repo rate will make borrowing cheaper, increase liquidity and improve market confidence. Additionally, the government is pursuing cautious trade policies to safeguard national interests amid global uncertainty. The upcoming Free Trade Agreement (FTA) between India and the UK aims to reduce tariffs, streamline customs procedures and promote bilateral investments. These d evelopments, along with declining inflation, are expected to support consumer spending, ensure economic stability, broaden market access and contribute to Indias sustainable growth.

INDIAN ECONOMY

The Indian economy continued to be one of the fastest growing economy, which is also growing in size and become the fourth largest economy in the world 2025. Though, the exports sector, which is central to higher economic growth on sustainable basis continued to lag. The domestic demand and manufacturing activities continued to remain robust with moderate inflation despite of supply side constraints linked with higher uncertainty in energy availability and prices. As per a latest IMF report, the economic growth is expected to be 7.6% for FY 2025-26 against 5% in China.

MANAGEMENT DISCUSSION AND ANALYSIS

The management of Jakharia Fabric limited has reviewed the Companys performance and key business developments for the financial year ended March 31, 2026, and shared its perspective on the road ahead. The outlook reflects the current economic environment and business landscape, though future developments, both domestic and global, across economic, social, and political fronts may influence actual outcomes.

OPPORTUNITY & CONCERN To remain aligned with industry standards, the Company consistently reviews and updates its internal controls, benchmarking against best practices. It integrates evolving business requirements, legal regulations and corporate governance into its systems following a comprehensive assessment of stakeholder expectations, including customers and regulatory bodies. Senior management actively oversees the implementation of internal audit recommendations to ensure continuous improvement. R egular management follow-up upgrades strengthen controls and support informed decision-making, keeping the Company technologically current and competitive within the industry.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS AND RETURN ON NETWORTH

The changes in the key financial ratios for the financial year 2025-26 as compared to the immediately previous financial year are provided under Notes to the Standalone Financial Statements and hence not repeated here for the sake of brevity.

CAUTIONARY STATEMENT

Statement in Management Discussion and Analysis report d escribing the Companys objectives, expectations or predictions may be forward looking statements within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed in the statement. Important factors that could make a difference to the Companys operations include finished goods prices, raw materials costs and its availability, domestic as well as global demand supply conditions, fluctuations in exchange rates, changes in Government policies, tax changes, economic d evelopments within India and the countries with which the Company has business contacts. The Company assumes no responsibility to amend, modify, or revise any forward-looking statement, on the basis of any subsequent developments, information, or events. Besides, the Company cannot guarantee that these assumptions and expectations are accurate or will be realised.