Jayatma Industries Ltd Management Discussions

Your Directors have pleasure in presenting the Management Discussion and Analysis Report for the year ended on 31st March, 2026.

GLOBAL ECONOMY

The global economy is facing another major shock. The conflict in the Middle East has triggered sharp increases in energy prices, renewed inflationary pressures, and fueled expectations of tighter monetary policy. Global growth is projected to slow to 2.5 percent in 2026, from 2.9 percent in 2025?the lowest rate since the COVID-19 pandemic?amid weaker prospects for economies dependent on energy imports and those directly affected by hostilities. Activity is expected to firm in 2027-28 as energy supplies recover, monetary easing resumes, and trade strengthens.

Growth in emerging market and developing economies (EMDEs) is expected to slow to 3.6 percent this year. For all EMDE regions, growth this year is forecast to be weaker than in 2025. Per capita income growth in EMDEs is projected to slow in 2026 to its weakest pace since the pandemic. The level of per capita income across EMDEs excluding China and India, relative to advanced economies, is not expected to return to the pre-pandemic level until after 2028, implying nearly a decade of lost income convergence.

Risks to the outlook remain skewed to the downside. A renewed escalation of hostilities or more prolonged disruptions to commodity flows could further raise commodity prices, intensify inflationary pressures and food insecurity, trigger financial stress, and lower growth. If energy supply disruptions prove more severe than assumed and are accompanied by substantial financial stress, global growth could fall to just 1.3 percent in 2026. Persistent trade policy uncertainty, geopolitical strains, and weather-related shocks also pose material risks. On the upside, broader investment in and adoption of artificial intelligence (AI) could lift activity.

Policy action is critical to address ongoing challenges. Enhanced global cooperation is needed to safeguard energy and food security, bolster the trading system, and advance the energy transition. Domestically, policy makers will need to balance controlling inflation with supporting activity, strengthen fiscal sustainability, and maintain financial stability. Slower growth prospects translate into reduced investment, constrained hiring, and tighter fiscal space, compounding the challenge of creating jobs in EMDEs with growing workforces in an era of potentially transformative change linked to AI. Meeting this challenge will require a concerted agenda centered on the conditions for job creation: investing in physical, human, and digital capital; fostering a business-friendly environment; and mobilizing private investment. In addition to the global and regional outlooks, this edition of Global Economic Prospects features two analytical chapters. One chapter examines the impact of government debt on interest rates. Another chapter considers the challenges of fiscal policy in commodity-exporting EMDEs.

A Rising Challenge: Sovereign Debt Levels and Interest Rates in EMDEs. Rising government debt poses a key challenge for EMDEs, as it leads to higher interest rates, higher debt-service payments, and a greater likelihood of debt distress. Debt levels are positively associated with dollar-denominated sovereign bond spreads and domestic-currency government bond yields. The relationship with rising debt is non-linear: the increases in spreads or yields associated with increases in debt-to-GDP ratios are greater the higher the debt-to-GDP ratio.

The increase in EMDE debt-to-GDP ratios since 2010 is associated with increases in sovereign spreads and domestic-currency yields of about 110 and 30 basis points, respectively. Rising debt in advanced economies, by pushing up yields in those economies, has added further to the increase in EMDE interest rates. With EMDE government debt at historically high levels, additional borrowing may lead to progressively larger increases in interest rates. Rising debt has led to even larger increases in interest rates in countries with a history of default, low credit ratings, frontier market status, heavy reliance on short-term debt, and weak governance.

The findings underscore the importance of strengthening fiscal positions. This can be achieved through stronger domestic revenue mobilization, more efficient public spending, improved debt management, support for domestic debt market development, and, where appropriate, debt-for- development swaps. By helping contain borrowing costs and preserve fiscal space, these measures can also support the infrastructure, services, and private investment needed for long-term growth and job creation.

Navigating Volatility: Fiscal Policy and Commodity Price Swings. Large commodity market disruptions?most recently triggered by the conflict in the Middle East?have brought renewed attention to the persistent fiscal challenges faced by commodity-exporting EMDEs. Since 2000, fiscal positions in these economies have generally been weaker than those in other EMDEs, reflecting lower and more volatile revenues, commodity price swings, and limited buffer accumulation in good times.

Government debt across EMDEs has risen since the global financial crisis, but commodity exporters are especially vulnerable. A 1 percent increase in commodity prices raises both revenues and primary spending in commodity exporters by about 0.4 percent after five years, suggesting that revenue windfalls are gradually spent rather than saved. Fiscal positions over commodity price cycles vary across exporters of different commodities. Primary balances in energy and metal exporters strengthen during booms and worsen in slumps, mainly as a result of revenue swings, while primary spending remains broadly contained; debt ratios fall in booms and rise in slumps. In contrast, agricultural exporters increase spending in booms, offsetting revenue gains and leading to more lasting debt accumulation.

Although sovereign wealth funds (SWFs) and fiscal rules have helped smooth spending over commodity cycles in some countries, they offer limited protection amid intensifying spending pressures after commodity shocks. Policy implications point to an integrated approach combining credible fiscal rules, well-governed SWFs, independent fiscal councils, strengthened debt management, revenue diversification, and robust institutions. Together, such reforms are critical to enhancing fiscal resilience, reducing volatility, supporting sustainable and inclusive growth, and boosting job creation.

The global economy demonstrated resilience during FY 2025-26 despite persistent geopolitical uncertainties, evolving trade policies, inflationary pressures, and fluctuations in commodity prices. While inflation moderated across several major economies, global growth remained supported by resilient consumer demand, easing supply chain constraints, and gradual stabilization of monetary policies. International institutions expect global growth to remain steady, although geopolitical conflicts, trade fragmentation, and financial market volatility continue to present downside risks.

Source: International Monetary Fund (IMF) - World Economic Outlook; IMF Article IV Consultation - India (2025); World Bank - Global Economic Prospects.

INDIAN ECONOMY

India continued to remain one of the fastest-growing major economies during FY 2025-26, supported by strong domestic demand, robust public capital expenditure, resilient manufacturing activity, improving private investment, and policy reforms. Government initiatives such as Make in India, PM Gati Shakti, and continued infrastructure investments have strengthened industrial growth and enhanced Indias long-term economic outlook. Indias macroeconomic stability, healthy banking sector, and sustained focus on manufacturing are expected to support continued economic expansion.

Source: Economic Survey 2025-26, Government of India; Reserve Bank of India (RBI); IMF - Article IV Consultation (2025); IMF World Economic Outlook Update

Key Economic Themes in 2026

The Indian economy during FY 2025-26 was characterized by increased infrastructure spending, expansion in manufacturing, growing investments in roads and logistics, rising adoption of technical textiles, digital transformation across industries, sustainability initiatives, and continued policy support for exports and industrial development. These developments have created favourable conditions for businesses operating in manufacturing and infrastructure-related sectors.

Source: Economic Survey 2025-26; Ministry of Commerce & Industry; Ministry of Textiles; India Brand Equity Foundation (IBEF).

ORGANISATION PROFILE:

Jayatma Industries Limited is engaged in the textile business with a focus on cotton and related textile products. The Company has also diversified into geogrid products used in road construction and infrastructure development. The Company remains committed to delivering quality products, strengthening customer relationships, improving operational efficiency, and creating sustainable value for its stakeholders.

OPPORTUNITIES AND THREATS:

The textile and infrastructure sectors continue to present significant growth opportunities due to increasing domestic demand, Government support for manufacturing, infrastructure expansion, export opportunities, and rising adoption of technical textiles. However, businesses also face challenges arising from raw material price volatility, competitive pressures, changing regulatory requirements, foreign exchange fluctuations, and global economic uncertainties.

Source: Ministry of Textiles; India Brand Equity Foundation (IBEF); IMF; CRISIL Industry Research.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During FY 2025-26, the Company continued to focus on operational efficiency through prudent cost management, effective working capital management, and optimization of business processes. Continuous monitoring of procurement, inventory, and customer servicing enabled the Company to maintain operational stability in a competitive business environment. The Companys financial performance reflects prevailing market conditions, raw material price movements, and operational efficiencies achieved during the year.

RISKS AND CONCERNS

The Company operates in an environment exposed to risks including raw material price volatility, demand fluctuations, working capital requirements, competitive pressures, regulatory changes, supply chain disruptions, foreign exchange movements, and inflationary trends. The management continuously evaluates these risks and implements appropriate mitigation strategies to safeguard business performance and long-term sustainability.

INTERNAL CONTROL SYSTEM:

The Company has established adequate internal control systems commensurate with the size and nature of its operations. These controls are designed to ensure safeguarding of assets, accuracy of financial reporting, operational efficiency, compliance with applicable laws and regulations, and adherence to internal policies. Regular internal audits are conducted, and the Audit Committee periodically reviews the effectiveness of the internal control framework.

RECENT TREND AND FUTURE OUTLOOK:

The outlook for the textile and geogrid businesses remains positive, supported by increasing domestic consumption, infrastructure development, Government policy support, technical textile initiatives, and expanding manufacturing capabilities. The Company intends to continue strengthening operational efficiencies, enhancing product quality, expanding market presence, and exploring new business opportunities to achieve sustainable long-term growth.

CAUTIONARY STATEMENT:

Statements made in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates, expectations, or predictions may constitute forward-looking statements within the meaning of applicable securities laws and regulations. Actual results may differ materially due to various factors including changes in economic conditions, government policies, raw material prices, competition, regulatory developments, exchange rate fluctuations, and other risks beyond the Companys control.

Date: 11th August, 2026	For and on behalf of the Board,	For and on behalf of the Board,
Place: Ahmedabad	Sd/-	Sd/-
	Nirav Kalyanbhai Shah	Rajan Parikh
	CEO & Director	Director
	DIN:00397336	DIN:00198383