Jaysynth Orgochem Ltd Management Discussions

ANNEXURE-VII

Industry Structure and Developments

During FY 2025-26, the global economy recorded moderate growth despite continued challenges arising from trade tensions, policy uncertainties, evolving supply chain dynamics, geopolitical developments, and volatility across several emerging markets. Geopolitical tensions in certain regions, including West Asia, contributed to disruptions in global shipping routes and increased volatility in crude oil and petrochemical-based raw material prices, impacting manufacturing industries worldwide.

The global dyes and pigments industry continues to exhibit steady growth, supported by increasing demand from textiles, paints and coatings, plastics, packaging, printing inks, automotive, and industrial applications. The global colorants market is estimated at approximately USD 43 billion and is expected to grow at a CAGR of around 5-6% over the medium term. Growth is driven by rising consumption, product innovation, increasing focus on sustainability, and expanding industrial activity across developing economies. The Asia-Pacific region accounts for a significant share of global demand and production, with China and India continuing to serve as major manufacturing hubs. India is increasingly being recognized as a preferred alternative sourcing destination as global customers seek to diversify supply chains and reduce dependence on any single geography. This trend presents significant opportunities for Indian colorant manufacturers with strong manufacturing capabilities, regulatory compliance standards, and customer-centric product offerings.

The Indian economy remained resilient during FY 2025-26, supported by stable macroeconomic fundamentals, sustained infrastructure investments, improving rural demand, and a favourable consumption environment. As one of the fastest-growing major economies globally, India continues to provide a positive backdrop for manufacturing and industrial sectors.

The Company operates through the following business segments:

1. Colourants & Chemicals Segment -comprising dyestu_s, pigments, pigment dispersions, inks, and textile chemicals; and

2. Inkjet Printer Segment -comprising sales, installation, servicing, and technical support of large-format inkjet printers, printer spares, and related solutions.

The Indian dyes, pigments, and specialty colorants industry remains an important constituent of the chemical sector and a significant contributor to export earnings. Demand for colorants continues to be driven by a diverse range of end-user industries including textiles, plastics, paints, coatings, printing inks, paper, packaging, and consumer goods. At the same time, increasing emphasis on sustainable manufacturing practices, environmental compliance, resource efficiency, and product traceability is reshaping industry dynamics and encouraging innovation across the value chain.

The digital printing industry continues to outperform several traditional printing segments, driven by growth in textile printing, packaging, labels, industrial printing, personalization, and sustainability-led applications. Companies engaged in digital inks, printheads, workflow solutions, software integration, and digital printing equipment are witnessing favourable long-term growth prospects. The integration of digital printing solutions with the Companys ink manufacturing capabilities enables it to offer comprehensive solutions to customers, strengthen long-term customer relationships, and generate recurring revenue opportunities through the growing installed base of digital printing equipment.

Opportunities and Performance

The textile industry continues to be the largest consumer of colorants and remains a key growth driver for the Companys products. Rising demand for textiles, garments, home furnishings, and technical textiles, supported by increasing exports and government initiatives promoting manufacturing, is expected to sustain demand for dyes, pigments, and printing inks.

The global transition towards environmentally responsible manufacturing presents significant opportunities for innovative and sustainable colorant solutions. Customers increasingly seek products that deliver enhanced performance, regulatory compliance, lower environmental impact, and improved process efficiency.

Digital textile printing continues to gain acceptance across domestic and international markets owing to its advantages, including shorter production cycles, lower inventory requirements, customization capabilities, reduced wastage, and significantly lower water consumption compared with conventional printing methods. The increasing adoption of digital printing technologies is expected to support growth in digital inks, consumables, and associated technical services.

The Companys Digital Printing Solutions business is well-positioned to benefit from this structural shift. The expanding installed base of large-format inkjet printers is expected to drive recurring demand for digital inks, maintenance services, software solutions, colour management systems, workflow automation tools, and technical support services.

The Company continues to focus on digital pigment ink technologies that offer environmentally responsible printing solutions with minimal water consumption and reduced e_uent generation. Continuous investments in product development, process improvements, and intellectual property creation remain integral to the Companys long-term growth strategy.

The pigments and pigment dispersions business also offers attractive growth opportunities driven by increasing demand from plastics, paints, coatings, packaging, construction, and industrial applications. Growing emphasis on product consistency, application-specific performance, sustainability, and regulatory compliance is expected to support demand for advanced pigment dispersion products. During the year, the Company continued to focus on product innovation, market expansion, customer engagement, operational excellence, and cost optimization initiatives. Its diversified product portfolio and integrated business model enabled the Company to further strengthen its presence across domestic and international markets.

Standalone revenue from operations for FY 2025-26 was 25,537 Lakhs as against 22,964 Lakhs in the previous year, registering a growth of 11.20%. Export revenue for the year stood at 7,466 Lakhs as against 8,494 Lakhs in FY 2024-25, with decrease of 12.10%. Profit before tax on a standalone basis for the year was 2,082 Lakhs as compared to 2,164 Lakhs in the previous year, with decline of 3.77%. On a consolidated basis, revenue from operations for the year was 25,968 Lakhs as against 22,803 Lakhs during previous year, while consolidated profit before tax stood at 2,069 Lakhs as against 2,136 Lakhs in the previous year.

Financial Performance on standalone basis:

Particulars	FY 2025-26	FY 2024-25	Variance
Net Sales (Rs / Lakhs)	25,378	22,793	11.34%
Earnings before exceptional items, interest, tax, depreciation and amortisation	2,495	2,601	(4.06%)
(Rs / Lakhs)
Profit before Tax (Rs / Lakhs)	2,082	2,164	(3.77%)
Key Ratios
Debtors Turnover (Days)	79	74	(6.76%)
Inventory Turnover (Days)	110	98	12.24%
Current Ratio	3.97	4.19	(5.25%)
Operating Net Profit Margin (%)	9.83%	11.41%	(13.85%)
Net Profit Margin (%)	5.81%	6.97%	(16.64%)
ROCE (%)	13.48%	14.79%	(8.86%)

Outlook and Strategy

The long-term outlook for the colorants industry remains positive, supported by continued growth in textiles, packaging, plastics, paints, coatings, and other industrial sectors. India continues to strengthen its position as a preferred global sourcing destination for dyes, pigments, and specialty colorants, supported by its manufacturing capabilities, technical expertise, and compliance standards.

Customers across textiles, coatings, plastics, and packaging industries are increasingly demanding environmentally responsible solutions, including low-VOC colorants, heavy-metal-free pigments, bio-based dyes, water-e_cient dyeing technologies, and products compliant with global environmental standards such as REACH. Consequently, manufacturers investing in sustainable technologies, green chemistry, and cleaner production processes are expected to gain competitive advantages.

The Company expects increasing adoption of digital textile printing technologies to create significant opportunities for its digital inks and digital printing solutions business. Growth in the installed printer base, coupled with rising demand for consumables, software solutions, workflow automation, colour management systems, and technical support services, is expected to contribute positively to future growth.

The Company will continue to focus on innovation, customer-centric solutions, operational excellence, sustainability initiatives, export growth, and expansion into high-value products and markets to strengthen its competitive position and create long-term value for stakeholders.

Risks and Concerns

The Companys operations are exposed to various business risks, such as volatility in prices and availability of key raw materials, intense competition in commodity product segments, changes in environmental regulations and compliance requirements, geopolitical developments and global trade disruptions, supply chain and logistics-related challenges, exchange rate fluctuations, changes in customer demand patterns and technological advancements, credit and counterparty risks, etc The colorants industry is also witnessing increasing scrutiny regarding wastewater management, hazardous chemicals, carbon emissions, worker safety, and product traceability. Compliance with evolving sustainability standards and environmental regulations requires continuous investment in technology, processes, and monitoring systems.

The Company continuously monitors these risks and undertakes appropriate mitigation measures through prudent procurement practices, diversified sourcing, customer diversification, process improvements, effective internal controls, and comprehensive risk management systems.

Internal Control Systems and Their Adequacy

The Company has established adequate internal control systems commensurate with the nature, size, and complexity of its operations. These controls are designed to safeguard assets, ensure accuracy and reliability of financial records, promote operational efficiency, and ensure compliance with applicable laws and regulations.

The internal audit function regularly reviews operational, financial, and compliance controls across various business processes. Significant observations and recommendations are reviewed by the Audit Committee and corrective actions are implemented on a timely basis.

Human Resources and Industrial Relations

The Company firmly believes that its employees are its most valuable asset and a key contributor to sustainable growth. The Company continues to invest in employee development through training, skill enhancement, performance management, and employee engagement initiatives.

Industrial relations remained cordial and harmonious throughout the year. The Company remains committed to providing a safe, inclusive, and productive work environment that encourages innovation, teamwork, and professional growth.

Cautionary Statement

Statements in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates, expectations, or predictions may be forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied due to various factors including changes in economic conditions, government policies, market demand, raw material availability and prices, foreign exchange fluctuations, competitive pressures, and other factors beyond the Companys control.

	For and on behalf of the Board of Directors
	Parag Sharadchandra Kothari
Place: Mumbai	Executive Chairman and Managing Director
Date: 05th August, 2026	DIN: 00184852