Jivial Industries Ltd Management Discussions

JIVIAL INDUSTRIES LIMITED (BSE-Listed)

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

ECONOMIC OVERVIEW

Global Economy

During financial year 2025-26, the global economy demonstrated resilience despite persistent macro-economic headwinds, geopolitical friction and localized supply chain re-alignments. Central banks across major economies moved toward measured monetary easing as inflation moderated through most of 2025, although a fresh uptick in energy and food prices lifted the inflation trajectory again in 2026. World trade recovered on the back of stable consumer spending, investment in green infrastructure, and rising demand for lightweight, recyclable industrial materials such as aluminium. The IMFs 2026 updates project global headline inflation rising from 4.1% in 2025 to 4.7% in 2026, before easing to 3.9% in 2027, while global growth is projected to moderate from 3.3% in 2024 to around 3.1%-3.2% in 2025-26. Growth remained supported by emerging market economies in South and Southeast Asia.

Post-Pandemic Recovery: Resilience and Supply Chain Realignment

The global supply chain landscape has continued its structural shift toward localized manufacturing and dependable domestic vendor bases. Your Company has continued to strengthen local sourcing of raw materials - specifically extruded aluminium profiles and castings - and enhanced production efficiency at its manufacturing facility in Rajkot, Gujarat.

Structural Shifts in Construction & Architecture

Commercial and residential real estate trends continue to favour open-plan layouts, enhanced ventilation, expansive balcony spaces and sustainable green building design. These preferences continue to accelerate the shift from conventional steel or wooden barriers to premium aluminium handrails, continuous glass railing profiles and modular partition systems.

Operational Recovery and Scalability

Leveraging its established market presence and specialised product engineering, Jivial Industries Limited has continued to convert market opportunities into operational gains:

• Market Expansion: Distribution network extended across core domestic hubs including Gujarat, Maharashtra and Rajasthan, with presence across 20+ major metropolitan cities.

• Product Diversification: Specialised architectural fittings such as conceal profiles, LED-integrated handrails and customised glass railing fixtures for high-rise residential and modern office spaces.

• Financial Stability: A disciplined capital structure enabling healthy operating margins and continued capacity for long-term growth and capital expansion.

Growth Rates: National & Sectoral Momentum

FY 2025-26 was marked by strong economic expansion across Indias industrial and construction landscape. As per the Ministry of Statistics and Programme Implementations (MoSPI) provisional estimates released in June 2026, Indias real GDP grew 7.7% for the full year (Q4 FY26 at 7.8%), up from 6.5% in FY 2024-25, keeping India the fastest-growing major economy in the world. Manufacturing, trade/transport/hospitality and financial/real estate services all recorded double-digit growth at current prices during the year.

Chart 1: Indias quarterly real GDP growth, FY2024-25 vs FY2025-26 (Source: MoSPI/RBI)

Industry & Category Growth Dynamics Relevant to the Company

• Architectural Hardware & Fittings: The Indian architectural hardware market continues to expand at a CAGR of approximately 7.0%, supported by urban real estate development, interior personalisation and demand for premium, rust-free, modular fittings.

• Green & Sustainable Building Materials: Sustainable architectural materials - including 100% recyclable aluminium extrusions and structural glass systems - are growing at a CAGR of approximately 11.3%, driven by green building codes and certification requirements.

• Real Estate & Construction: Residential and commercial space absorption across Tier-1, Tier-2 and Tier-3 cities continues to post double-digit annual growth, sustaining volume demand for modular handrails, balcony glass railings and structural aluminium profiles.

Company-Specific Growth Drivers

• Volume Expansion in Glass Railing & Aluminium Profiles: Continued demand for unobstructed balcony views in multi-storey residential and commercial projects drove higher order volumes for the Companys core glass railing systems and aluminium profiles.

• Tier-2 & Tier-3 Regional Penetration: Accelerated urbanisation and rising disposable income in non-metro hubs generated strong secondary-market growth outside primary metropolitan centres.

• Product Premiumisation: Higher adoption of concealed profiles, anodised finishes and integrated LED handrail systems supported per-unit realisations and gross margins.

Inflation and Monetary Policy

Global inflation eased through 2024-25 but turned more mixed through 2026: the IMF projects global headline inflation rising from 4.1% in 2025 to 4.7% in 2026 before easing to 3.9% in 2027, driven mainly by higher energy and food prices. OECD data shows G20 headline inflation declining from 3.4% in 2025 to 2.9% in 2026, with core inflation in advanced G20 economies easing slightly from 2.6% to 2.5%. Major central banks, including the US Federal Reserve and the European Central Bank, remain watchful of the 2026 uptick even as they continue a broadly easing policy stance.

In India, the Reserve Bank of India (RBI) cut the repo rate by a cumulative 100 basis points between April and December 2025, taking it to 5.25%, and reduced the Cash Reserve Ratio by 100 basis points to 3.0%, releasing approximately Rs. 2.5 lakh crore of systemic liquidity by December 2025. Retail inflation fell as low as 1.33% in December 2025 - the lowest since the CPI series began - well inside the RBIs 2%-6% tolerance band. Since then, inflation has picked up again: CPI rose to 4.38% in June 2026, crossing the RBIs 4% target for the first time in 17 months, driven mainly by food and fuel prices, though core inflation has stayed comparatively benign. At its August 2026 policy review, the MPC held the repo rate steady at 5.25% for a fourth consecutive meeting, maintained a neutral stance, raised its FY 2026-27 GDP growth forecast to 6.7%, and projected FY 2026-27 inflation at around 5.0%.

Geopolitical Tensions and Trade

The geopolitical backdrop remains broadly similar in character to the prior year, though flash-points have shifted. Alongside continuing US-China-Russia trade friction, the ongoing conflict in the Middle East and continued US tariff actions have added fresh volatility to global trade flows, shipping routes, fertiliser availability and commodity prices through 2025-26. The RBI has specifically flagged these risks - together with an uneven southwest monsoon and global trade-policy uncertainty - as key watch-items for the domestic growth and inflation outlook.

Labour Markets and Social Issues

Labour markets continue to adjust to structural shifts such as hybrid work and evolving skill requirements, and inclusive-growth policy remains a live priority for policymakers. Economic disparities and social inequality remain critical issues, with varying impact across regions and demographic groups; policy efforts continue to focus on strengthening social safety nets and inclusive growth. The foundations for future output and productivity growth need to be reinforced through structural policy reforms that improve human capital and enable the economy to capture the benefits of technological advances.

Indian Economy

India closed FY 2025-26 (year ended March 2026) with real GDP growth of 7.7%, per MoSPIs provisional estimates released in June 2026 - up from 6.5% in FY 2024-25 and ahead of the RBIs own February 2026 projection of 7.6%. Growth accelerated through the year: Q1 FY26 grew 7.8% (a five-quarter high), Q2 grew 8.2%, Q3 grew around 8.0%, and Q4 came in at 7.8%. Manufacturing, construction, and trade/transport/financial services all posted strong or double-digit expansion at current prices. Nominal GDP for FY 2025-26 rose to approximately Rs. 346.4 lakh crore, a nominal growth rate of about 9.1% for the year.

Private Final Consumption Expenditure (PFCE) grew strongly through the year, rising to roughly 61%-62% of GDP - its highest share in well over a decade - while Gross Fixed Capital Formation (GFCF) grew around 8% for the year, with Q4 GFCF touching a 13-quarter high. This consumption- and investment-led momentum held up despite a challenging global backdrop of tariff disputes and Middle East-related energy volatility.

Looking ahead, the RBIs August 2026 policy statement projects FY 2026-27 GDP growth at around 6.7%-6.9%, moderating from FY 2025-26s strong actual outturn as global geopolitical and tariff-related risks weigh on the outlook, with medium-term growth potential estimated at around 7%.

Emerging Spending Patterns in Rural and Urban India

The shift toward discretionary, lifestyle-oriented spending has continued into 2025-26, reinforced by the sharp rise in the consumption share of GDP noted above and by GST rate cuts, which supported a rebound in consumer activity across durable goods and services. This trend continues to create opportunities for businesses in the durable goods and lifestyle-products space, including architectural fittings for modern residential and commercial spaces.

Inflation

Indias disinflation trend through 2025 went well beyond earlier benchmarks: annual retail inflation fell to just 1.33% in December 2025, comfortably inside the RBIs 2%-6% tolerance band, before rising again through mid- 2026 to reach 4.38% in June 2026 - just above the RBIs 4% target for the first time in 17 months, though still within the tolerance band. The increase has been driven mainly by food and fuel prices rather than a broad-based rise, with core inflation remaining relatively steady. The RBI expects headline inflation to peak in Q3 FY 2026-27 (October-December 2026) before moderating, and projects average FY 2026-27 inflation at around 5.0%, with risks flagged around metals, precious metals, and imported inflation from currency depreciation.

Resilient Manufacturing Sector

For FY 2025-26 as a whole, the Index of Industrial Production (IIP) grew a cumulative 4.1%, a modest improvement on FY 2024-25s 4.0%, with a two-speed pattern across sectors: capital goods surged 14.6% and infrastructure/construction goods grew 6.7%, while manufacturing itself (77.6% of the index) grew a comparatively modest 4.3% in March 2026. The motor vehicles sub-segment posted a standout 18.1% jump, led by auto components and commercial vehicles. On the national accounts basis, the Manufacturing sector achieved double-digit nominal GVA growth in FY 2025-26 as per MoSPIs June 2026 release. Note that MoSPI is transitioning the IIP to a new 2022-23 base year through 2026, so figures published from June 2026 onward are not directly comparable to the FY 2025-26 series above.

OUTLOOK FOR FY 2026-27 AND BEYOND

Indias economic prospects remain strong, with the RBI projecting FY 2026-27 GDP growth of around 6.7%-6.9%, moderating from FY 2025-26s strong 7.7% actual outturn as global geopolitical and tariff-related risks weigh on the picture. FY 2026-27 inflation is projected at around 5.0%, a step up from the unusually low FY 2025-26 average, with the RBIs neutral policy stance leaving room to respond as growth and inflation data evolve through the year. A recovery in global liquidity conditions, together with continued domestic reform momentum, could further support capital flows and private-sector investment, aiding Indias export ambitions.

Growth Drivers

• New Consumer Behaviours: The continued shift toward discretionary spending and lifestyle-oriented purchases presents opportunities for businesses, particularly in durable goods and services. Companies should focus on tapping into these emerging consumer preferences.

• Addressing Disparities: The Government continues to focus on reducing urban-rural spending gaps and addressing the share of household spending on education. Targeted interventions in these areas remain crucial for sustaining long-term, inclusive growth.

• Leveraging Export Potential: Growth in high-value manufactured exports highlights Indias potential to further integrate into global markets. Businesses should capitalise on this trend by expanding their presence internationally.

• Policy Push Required: Sustained momentum requires continued Government policy support for manufacturing and construction-sector productivity, job creation and access to finance for small and medium enterprises, helping ensure balanced growth and reduce regional economic disparities.

RCHITECTURAL ALUMINIUM, GLASS RAILING & BUILDING HARDWARE INDUSTRY OVERVIEW

Jivial Industries Limited is principally engaged in the manufacture and supply of architectural aluminium profiles, glass railing systems, balustrades and modular building-hardware fittings - including conceal profiles, LED- integrated handrails and customised glass railing fixtures - for high-rise residential, commercial and institutional construction, from its manufacturing facility at Rajkot, Gujarat.

Indias aluminium extrusion market - the primary raw-material category underpinning the Companys product range - reached approximately USD 2.6 billion in 2025 and is estimated at around USD 2.66 billion in 2026, with several industry trackers projecting a value CAGR of between 10.8% and 14.1% through the early-to-mid 2030s, taking the market toward USD 6.7-9.8 billion over the coming decade. In volume terms, Indias aluminium extrusion demand is estimated to have grown approximately 7.9% year-on-year in 2025-26, reaching roughly 858,000 tonnes, with building and construction remaining the single largest end-use segment, followed by transportation and electrical applications. The 6000-series alloy - the grade most widely used in architectural systems for its strength-to-weight ratio and corrosion resistance - accounted for more than 74% of extrusion demand in 2025.

Within this base, the Indian architectural hardware and fittings market continues to expand at a CAGR of approximately 7.0%, and the market for sustainable/green building materials - including recyclable aluminium extrusions and structural glass systems, both core to the Companys product portfolio - continues to grow at a CAGR of approximately 11.3%, driven by green building certification requirements and rising adoption of open- plan, glass-railed balcony and terrace designs across urban residential and commercial developments.

Product & Market Segmentation

The Companys addressable market is segmented on the basis of product category into:

• Glass Railing Systems - frameless and semi-frameless balustrades, balcony and staircase glass railings

• Aluminium Handrail & Balustrade Systems - including LED-integrated and conceal-profile handrails

• Architectural Aluminium Profiles - extruded sections for windows, doors, partitions and structural framing

• Modular Partition & Fitting Systems - office and residential interior partition hardware

On the basis of finish, the market is segmented into anodised, powder-coated and PVDF-coated profiles. On the basis of end-use, the market is segmented into residential, commercial/office, and institutional (hospitality, healthcare, retail) construction. On the basis of application, demand is split between new-build construction and renovation/retrofit projects.

INDIA ALUMINIUM EXTRUSION & ARCHITECTURAL HARDWARE MARKET ANALYSIS

The architectural aluminium and building-hardware industry is a downstream segment of Indias broader aluminium extrusion and construction-materials industry. Aluminium extrusion - the process of shaping heated aluminium billet through a die into profiles, sections and structural components - is the primary manufacturing process underlying the Companys product range, and product quality depends on die design, alloy selection and surface-finishing technology.

Indias overall construction and real estate sector recorded strong double-digit space-absorption growth across Tier-1, Tier-2 and Tier-3 cities in FY 2025-26, consistent with the secondary (industry) sectors 8.1% real GVA growth for the year noted earlier in this report. This construction momentum, combined with continued urbanisation and rising demand for open-plan, glass-railed living and working spaces, remains the principal demand driver for the Companys core product categories.

Indias aluminium extrusion capabilities have also matured on the technology and compliance front, with domestic producers increasingly investing in CNC-enabled extrusion systems, advanced die design, automated handling and precision-finishing technologies, and improving compliance with ISO, IATF, RoHS and REACH standards - supporting both quality improvements in the domestic market and rising export competitiveness for Indian manufacturers, including in premium architectural fittings.

The Companys regional footprint - anchored in Gujarat with expanding distribution across Maharashtra, Rajasthan and 20+ metropolitan cities - is well aligned with Indias construction growth corridors, and its continued investment in product premiumisation (concealed profiles, anodised finishes, LED-integrated handrails) positions it to capture a disproportionate share of the higher-value segment of this expanding market.

Growing Investment and Technological Advancement Driving Market Growth

Indias aluminium extrusion and building-hardware sector continues to attract sustained capital investment, supported by Government initiatives such as Make in India, the National Infrastructure Pipeline and the Smart Cities Mission, all of which create predictable long-term demand visibility for construction-linked aluminium products. Producers across the value chain continue to expand and modernise capacity - including new extrusion lines, larger-profile capability and automated finishing lines - while adopting sustainability-linked practices such as increased use of recycled aluminium, in line with rising green-building certification requirements. The same dynamics that have driven premiumisation in the broader aluminium extrusion industry - demand for design- integrated, anti-corrosion and modular fittings - continue to support the Companys own strategy of premiumisation through concealed profiles, anodised finishes and LED-integrated handrail systems.

OPPORTUNITIES & THREATS

Opportunities

• Rising Demand for Glass Railing & Open-Plan Design: Continued preference for unobstructed balcony views, open-plan layouts and enhanced ventilation in multi-storey residential and commercial projects is sustaining strong order volumes for glass railing systems and aluminium profiles.

• Green Building & Sustainable Construction: Demand for 100% recyclable aluminium extrusions and structural glass systems is growing at a CAGR of approximately 11.3%, well ahead of the broader construction-materials market, as green building codes and certification requirements become more widespread.

• Tier-2 & Tier-3 Regional Penetration: Accelerating urbanisation and rising disposable income in non-metro hubs continue to open up secondary-market growth opportunities beyond the Companys core metropolitan markets.

• Product Premiumisation: Rising adoption of concealed profiles, anodised and PVDF-coated finishes, and integrated LED handrail systems supports higher per-unit realisations and improved gross margins.

• Government Infrastructure Push: Initiatives such as the National Infrastructure Pipeline, Smart Cities Mission and continued push for affordable and premium housing are expected to sustain construction-sector demand for architectural aluminium and building hardware over the medium term.

• Export Potential: Improving compliance with international quality standards (ISO, IATF, RoHS, REACH) among Indian aluminium extrusion producers is opening up export opportunities in North America, Europe, Southeast Asia and the Middle East.

Threats

• Raw Material Price Volatility: Aluminium and glass prices are directly linked to global commodity benchmarks (LME) and have shown sustained volatility through 2025-26; sharp or sustained price increases could compress margins if not fully passed through to customers.

• Regulatory & Building-Code Compliance: Compliance with evolving national and state-level building codes, safety standards and green-building certification requirements requires continuing investment in product design, testing and certification.

• Market Competition: The architectural aluminium and glass railing industry in India remains highly competitive, with numerous organised and unorganised regional players, creating pressure on pricing and margins, particularly in the mid-market segment.

• Economic & Real-Estate Cyclicality: Demand for the Companys products is closely linked to the pace of residential and commercial construction activity; a slowdown in real estate investment or construction starts would directly affect order volumes.

• Supply Chain Disruptions: Disruptions in the supply of extruded aluminium profiles, castings or glass, or in logistics and distribution, can affect the timely delivery of products to customers. Ongoing Middle East conflict and tariff-related trade friction have added fresh pressure on global input costs and logistics through 2025-26.

• Substitution Risk: Continued innovation in alternative materials (composite panels, engineered wood, steel- glass hybrid systems) could, over time, compete with aluminium-based architectural fittings in certain applications.

SEGMENT-WISE PERFORMANCE

The Companys main business activity is the manufacture and supply of architectural aluminium profiles, glass railing systems, balustrades and related building-hardware fittings, distributed through its network across Gujarat, Maharashtra, Rajasthan and 20+ metropolitan cities, serving primarily the residential and commercial construction sectors.

OUTLOOK

The Company continues to explore opportunities for expansion and will make necessary investments as attractive opportunities arise. This outlook sits against a stronger sector backdrop than a year ago: FY 2025-26 real GDP growth of 7.7%, continued double-digit growth in Indias construction and green-building-materials segments, and Indias aluminium extrusion market expanding toward an estimated USD 2.66 billion in 2026 collectively support a constructive medium-term operating environment for the Company.

RISK & MITIGATION

The Company has in place a mechanism to identify, assess, monitor and mitigate various risks to its key business objectives. Key business risks and the Companys mitigation strategy are set out below.

Raw Material Price Risk

As a manufacturer of aluminium- and glass-based architectural products, the Companys input costs are directly influenced by movements in global and domestic aluminium prices, which have remained volatile through 202526 - domestic ingot prices have moved within a wide range through the year, tracking LME and MCX benchmarks, global supply-side constraints and rupee movements. To mitigate this risk, the Company continues to strengthen local sourcing of extruded aluminium profiles and castings, monitor commodity price trends closely, and calibrate pricing and procurement strategy accordingly.

Supply Chain Disruptions

Disruptions in the supply chain can impact the availability of raw materials (extruded aluminium, castings, glass) and the timely delivery of finished products to market. This risk has, if anything, intensified rather than eased, with the ongoing Middle East conflict and tariff-related trade friction adding fresh pressure on global input costs and logistics. The Company continues to diversify its suppliers and logistics partners to reduce dependency on a single source.

Regulatory Risk

Changes in Government policy relating to building codes, construction standards, environmental compliance or import/export regulations for aluminium and glass products can materially affect the Company. There can be no assurance that the Government of India or state authorities will not implement further regulations, approval requirements or conditions that could materially affect the Companys operations. The Company continues to monitor and engage with regulatory developments as they evolve.

Market and Competition Risk

The architectural aluminium and glass railing industry in India remains highly competitive, with numerous organised and unorganised regional players vying for market share - a dynamic that has, if anything, become more pronounced given the sectors continued growth, which continues to draw further entrants. Competitors may introduce new or improved product designs or pursue aggressive pricing strategies, pressuring margins and market share. The Company continues to invest in product engineering to develop new architectural fittings with improved design, finish and durability to differentiate its products.

Financial Risk

The Company remains exposed to fluctuations in interest rates and commodity prices, which can affect profitability. This risk has shifted meaningfully in the Companys favour over the past year: rather than the elevated-rate environment of the prior period, the RBI cumulatively cut the repo rate by 100 basis points between April and December 2025, bringing it to 5.25% (held steady through the first half of FY 2026-27), and reduced the Cash Reserve Ratio by 100 basis points to 3.0%, releasing approximately Rs. 2.5 lakh crore into the banking system - easing credit-access conditions and borrowing costs industry-wide. The Company continues robust financial planning and budgeting to manage cash flow and investment risk.

Labour and Human Resource Risks

Difficulty in finding skilled fabrication and finishing labour, together with rising wages, continues to pose a risk to operations. The Company continues to improve working conditions and offer competitive wages, while automating certain production tasks to reduce dependence on manual labour.

AUDIT AND INTERNAL CONTROL SYSTEM

One of the key requirements of the Companies Act, 2013 is that companies should have adequate Internal Financial Controls (IFC) and that such controls should operate effectively. Internal Financial Controls means the policies and procedures adopted by the Company for ensuring the orderly and efficient conduct of its business, including adherence to the Companys policies, safeguarding of its assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records, and timely preparation of reliable financial information. The Companys process of assessment ensures that adequate controls exist and are evidenced through unambiguous documentation. The process involves scoping and planning to identify and map significant accounts and processes based on materiality; thereafter, risks are identified, associated controls are mapped, and remediation is implemented where required. These controls are tested to assess operating effectiveness, and the Auditors independently test the controls as part of their reporting on whether the Company has an adequate IFC system in place and whether such controls are operating effectively. The Companys internal control system is robust and well established, comprising documented rules and guidelines for conducting business. The control environment is periodically monitored through procedures set by management, covering critical and important areas, and is periodically reviewed and updated to reflect changes in the business and operating environment.

RAW MATERIAL PRICES

The principal raw materials used in the Companys manufacturing process are extruded aluminium profiles, aluminium castings and glass, prices of which are linked to domestic and international commodity benchmarks and are procured in the open market. Domestic aluminium prices remained firm and volatile through FY 202526, tracking movements on the London Metal Exchange (LME) and the Multi Commodity Exchange of India (MCX): domestic ingot prices moved higher through the year on tight global supply and firm LME trends, before easing somewhat by mid-2026, with MCX aluminium futures trading in the range of approximately Rs. 282-345 per kg through July-August 2026. Institutional forecasts generally expect LME aluminium to remain range-bound to moderately firm through the remainder of 2026-27, supported by structural demand from construction, EVs and renewable energy, balanced against the pace of new supply additions. The Company continues to monitor commodity price trends closely and manages this exposure through supplier diversification, local sourcing of extruded aluminium profiles and castings, and calibrated pricing strategy.

FINANCIAL PERFORMANCE

During the year under review, the Company generated total revenue of Rs. 1763.71 (in lakhs) (Previous Year: Rs. 1200.61 (in lakhs)). The net profit before exceptional items and taxes was Rs. 462.02 (in lakhs) (Previous Year:

Rs. 358.49 (in lakhs)). The net profit after taxes resulted in a profit for the year of Rs. 462.02 (in lakhs) (Previous Year: Rs. 358.49 (in lakhs).

Expenditure grew from Rs.1331.68 61 (in lakhs) Lakhs in FY26 to Rs.848.30 61 (in lakhs) Lakhs in FY25.

Finance Cost increases from Rs.2.93 61 (in lakhs) in FY26 to Rs.9.03 61 (in lakhs) Lakhs compared to FY 25.

Net Profit/Loss: The Companys profit increase from Rs.296.28 61 (in lakhs) in the previous year to Rs.375.40 61 (in lakhs) in the current year.

Non-Current Liabilities: The non-current liabilities have increased from Rs.33.18 (In Lakhs) as on March 31, 2025 to Rs.74.54 (In Lakhs) as on March 31, 2026.

Current Liabilities: The current liabilities have increased from Rs.120.47 (In Lakhs) as on March 31, 2025 to Rs.297.98 (In Lakhs) as on March 31, 2026.

Non-Current Assets: The non-current assets have increased from Rs.263.15 (In Lakhs) as on March 31, 2025 to Rs.409.04 (In Lakhs) as on March 31, 2026.

Current Assets: The current assets increased marginally from Rs.762.19 (In Lakhs) as on March 31, 2025 to Rs.1210.56 (In Lakhs) as on March 31, 2026.

MATERIAL DEVELOPMENTS IN HR / INDUSTRIAL RELATIONS / NUMBER OF PERSONS EMPLOYED

The Company believes that human capital is key to driving progress and places strong emphasis on maintaining cordial relations with its employees, one of the key pillars of its business. The Companys HR policies and practices are built on the core values of Integrity, Passion, Speed and Commitment, with a continued focus on recruiting good talent and retaining its talent pool. The Company remains confident of its ability to deliver results and value for its shareholders. As on March 31, 2026, the Company had 45 employees on its rolls and 40 employees engaged on a contract basis.

ACCOUNTING POLICIES

The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year. The financial statements have been prepared under the historical cost convention on an accrual basis. Management accepts responsibility for the integrity and objectivity of the financial statements, as well as for the various estimates and judgements used therein.

DISCLOSURE OF ACCOUNTING TREATMENT IN PREPARATION OF FINANCIAL STATEMENTS

The Company has followed all relevant Accounting Standards laid down by the Institute of Chartered Accountants of India (ICAI) while preparing its financial statements.

DETAILS OF SIGNIFICANT CHANGES (i.e. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS

The Company has identified the following ratios as key financial ratios:

Sr. No. Particulars	2025-2026	2024-2025	Changes	Reason
1. Current Ratio	4.06	6.33	-35.79%	Decreased on account of a rise in current liabilities during the year.
2. Debt Equity Ratio	0.08	0.04	77.99%	Increased due to increase in borrowings during the year
3. Return on Equity	35.44	40.95	-13.46%	N.A.
4. Trade payables turnover ratio	14.68	44.71	-67.17%	Decreased due to a rise in trade payables during the year
5. Net Capital Turnover ratio	2.27	2.27	0.06%	N.A.
6. Return on Capital Employed (%)	35.58	46.52	-23.51%	N.A.
7. Return on investments (%)	N.A.	N.A.	N.A.	N.A.

DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF

Sr. No. Particulars	2025-2026	2024-2025	Changes	Reason
1. Return on Net Worth	30	0		N.A

CAUTIONERY STATEMENT

Statements in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates, and expectations may be "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied depending upon economic conditions, raw material price fluctuations, government policy changes, tax laws, and other incidental factors..

By Order of the Board of Directors
For, Jivial Industries Limited
Sd/-	Sd/-
Anand Jitendrabhai Chovatiya	Sheetalben Anand Chovatiya
Managing Director	Director
DIN:09212897	DIN:09212898
Place: Rajkot	Place: Rajkot
Date: 04/09/2026	Date: 04/09/2026
Registered Office: Shade No. A1/5, Road C,
Besides Daynamatic Forge, AJI Gidc,
Rajkot Aji Ind Estate, Rajkot,
Gujarat, India, 360003