Kamdhenu Ventures Ltd Management Discussions

Global Economy

The global economy in CY 2025 navigated a complex macroeconomic environment, with signs of gradual stabilization amid ongoing structural uncertainties. The World Economic Outlook Update (April 2026) released by the International Monetary Fund estimates global real GDP growth at 3.4% in CY 2025. Growth is projected to moderate to 3.1% in CY 2026 before improving marginally to 3.2% in CY 2027. This trajectory reflects fragile growth, shaped by tight financial conditions, uneven regional recovery, and persistent geopolitical risks.

Geopolitical tensions, particularly in the Middle East, remained a key source of uncertainty. Risks surrounding critical shipping routes, including the Strait of Hormuz, triggered intermittent volatility in energy prices, freight rates, and trade flows. While global supply chains have largely normalized, episodic disruptions continue to affect logistics planning and cost visibility across industries.

While inflationary pressures moderated from earlier highs, trends remained uneven across economies. Global inflation is projected at 4.4% in CY 2026 before easing to 3.7% in CY 2027. This sustains cost variability across energy, logistics, and key raw materials, influencing industrial cost structures and procurement strategies.

Advanced economies recorded moderate growth. The United States demonstrated relative resilience, supported by consumption and investment. In contrast, the Euro Area remained subdued amid slower industrial activity and energy-related challenges, while Japan witnessed a gradual slowdown.

Emerging markets continued to drive global growth, despite heightened sensitivity to commodity price movements, capital flows, and external demand conditions. Asia remained the primary growth engine, supported by domestic demand and structural investments. While China experienced slower growth momentum, India continued to distinguish itself among major economies through infrastructure spending, favorable demographics, and resilient consumption.

GDP Growth Projections (in %)

Global Economy	Advanced Economies	Emerging Markets and Developing Economies
CY 2027P: 3.2	CY 2027P: 1.7	CY 2027P: 4.2
CY 2026P: 3.1	CY 2026P: 1.8	CY 2026P: 3.9
CY 2025E: 3.4	CY 2025E: 1.9	CY 2025E: 4.4

E: Estimated P: Projected (Source: https://www.imf.org/en/publications/weo/issues/2026/04/14/world-economic-outlook-april-2026 )

Outlook

The global outlook remains subject to elevated downside risks, with geopolitical developments posing a key uncertainty to growth and inflation trajectories. A prolonged or broader conflict could disrupt trade flows, increase commodity price volatility, and weigh on financial stability, with emerging markets likely to be more affected. At the same time, structural factors such as rising public debt, evolving trade dynamics, and increasing geopolitical fragmentation continue to shape the global environment. Improving inflation trends and potential productivity gains from technology may support economic growth. However, the broader economic landscape is expected to remain sensitive to policy responses and external shocks, requiring continued adaptability in navigating changing conditions.

(Source: IMF World Economic Outlook, April 2026)

Indian Economy

India remained among the fastest-growing major economies during FY 2025-26, reflecting strong macroeconomic resilience despite persistent global uncertainties. Economic activity was anchored by domestic consumption, government-led infrastructure investment, resilient services performance, and a sustained policy emphasis on localization and industrial development. It was further supported by expanding urban demand, improving rural consumption, and sustained capital expenditure across infrastructure and manufacturing.

As per official estimates, Indias real GDP growth moderated from 7.6% in FY 2023-24 to 7.2% in FY 2024-25, largely due to a high base effect from the previous year and moderating global demand. However, growth is estimated to improve to 7.7% in FY 2025-26, supported by strong domestic demand, manufacturing recovery, infrastructure spending, and improving consumption trends.

Real GDP Growth Projections (in %)

FY 2025-26 (E)	FY 2024-25	FY 2023-24
7.7	7.2	7.6

E: Estimated P: Projected (Source: https://www.pib.gov.in/PressReleasePage.aspxRsPRID=22199128reg=3&lang=2 https://www.pib.gov/in/PressReleasePage.aspxRsPRID=2233792®=3&lang=1 https://www.mospi.gov.in/uploads/latestReleases/latest_release_1772189865181_f040336d-bc57-4aed-b80f-586d9ccb279e_Press_Note_on_New_Series_of_GDP_Estimates_with_Base_Year_2022-23_27022026.pdf )

Indias monetary environment became more supportive during FY 2025-26, with the Reserve Bank of India initiating cumulative repo rate cuts of 100 basis points during the year. Lower interest rates are expected to support housing demand and improve affordability. In turn, stronger consumption across housing-linked and home improvement categories is expected to benefit the decorative paints industry.

The Union Budget 2026-27 continues to reinforce the governments focus on infrastructure development, urbanization, manufacturing competitiveness, and supply-chain resilience. Continued investments in highways, logistics corridors, railways, industrial clusters, and urban infrastructure are expected to sustain demand across construction-linked and consumer-facing sectors.

In addition, government initiatives focused on domestic manufacturing, industrial cluster development, MSME support, and logistics enhancement are expected to strengthen the broader manufacturing and distribution ecosystem. Indias increasing integration into global supply chains, supported by trade diversification and strengthening international economic partnerships, is also expected to reinforce long-term industrial and consumption-led demand.

Structural shifts such as premiumization, rising focus on aesthetics and home improvement, and growing environmental awareness are reshaping demand across the paint industry. Increasing adoption of water-based coatings is expected to further support growth over the medium to long term.

Outlook

The RBI projects Indias GDP growth at around 6.7% for FY 2026-27, reflecting moderation amid geopolitical tensions, oil price volatility, and global uncertainty. Despite these near-term pressures, strong domestic fundamentals, continued public investment, and a sustained policy focus on manufacturing and localization are expected to support steady economic expansion. Rising consumption, urbanization, and deeper integration into global value chains are expected to underpin Indias medium-term growth outlook.

(Sources: https://www.indiabudget.gov.in/ (Sources: https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspxRsprid=62599 )

The entire paints business of Kamdhenu Ventures Limited (KVL or the Company) is carried out through Kamdhenu Colour and Coatings Limited (KCCL), a wholly owned subsidiary of the Company. KCCL undertakes the manufacturing, marketing, distribution and sale of all kinds of paints and related products. Accordingly, the operational and business performance of the paints segment forms an integral part of the overall business operations and consolidated performance of KVL.

In view of the aforesaid holding-subsidiary relationship and considering that KCCL constitutes the paints business vertical of the Company, the updates, developments and performance of the paints business have been appropriately included to provide stakeholders with a holistic overview of the business operations, growth initiatives and future outlook of the Company on a consolidated basis.

Indian Paints and Coatings Industry

The Indian paints and coatings industry continues to witness strong structural growth, supported by rising urbanization, increasing housing demand, expanding infrastructure investments and improving consumer spending patterns. According to Mordor Intelligence, the market is expected to grow from USD 12.51 billion in CY 2026 to USD 19.5 billion by CY 2031, reflecting a CAGR of 9.28% during the period. The industry is benefiting from sustained government-led infrastructure development, deeper penetration into Tier II, Tier III and Tier IV markets, increasing premiumization and shortening repair cycles across urban households.

Indian Paints and Coatings Market Snapshot (in USD billion)

Projected Market Size (CY 2031P)	Estimated Market Size (CY 2026E)	Market Size (CY 2025)	CAGR (CY 2026-2031)
19.5	12.51	11.45	9.28%

E: Estimated P: Projected (Source: https://www.mordorintelligence.com/industry-reports/india-paints-and-coatings-market )

The industry landscape is also evolving in response to changing regulatory and consumer expectations. A gradual transition toward water-borne and environmentally compliant coatings is gaining momentum. This shift is supported by stricter standards relating to volatile organic compound (VOC) emissions and rising preference for low-odor, sustainable paint solutions. Organized players continue to consolidate their market position through innovation-led product portfolios, wider dealer reach, investments in tinting infrastructure, supply-chain optimization, and stronger brand engagement.

Emerging Trends in the Indian Paints and Coatings Industry

Infrastructure and Housing-Led Demand Growing investments in housing, urban development and infrastructure projects continue to drive demand for decorative, protective and industrial coatings. Rising construction activity across urban and semi-urban markets is supporting long-term expansion.

Premiumization and Repaint Dynamics Changing consumer preferences, rising disposable incomes and increasing focus on aesthetics are accelerating demand for premium emulsions, low-odor paints and technologically advanced coatings. Digital color tools and customized shade solutions are also contributing to shorter repair cycles.

Growth in Organized Waterproofing Solutions Increasing awareness regarding structural protection and long-term maintenance is accelerating adoption of organized waterproofing products. Stricter BIS standards and rising demand for durable construction solutions are supporting growth across cementitious and polymer-based waterproofing systems.

(Source: https://www.mordorintelligence.com/industry-reports/india-paints-and-coatings-market )

Government Initiatives Supporting Industry Growth

The Union Budget FY 2026-27 and ongoing government initiatives continue to support long-term growth in the paints and coatings industry. Infrastructure investments, urbanization, manufacturing support, and industrial development initiatives remain key growth enablers.

Key Government Support Measures

Initiative	Industry Relevance
Smart Cities Mission	Supports decorative and architectural coatings demand
Bharatmalo and Highway Expansion	Drives industrial and protective coatings demand
Metro Rail and Railway Expansion	Encourages specialized coatings demand
Jal Jeevan Mission	Increases demand for anti-corrosive coatings
PMAY-Urban Housing Scheme	Supports decorative paints consumption
Tier II and Tier III Development Focus	Expands demand across emerging markets
Public Capex Growth	Supports long-term infrastructure activity
Manufacturing and MSME Support	Strengthens industrial and supply chain ecosystems

Under the Union Budget FY 2026-27, the Government continues to focus on infrastructure creation, manufacturing competitiveness and urban development. Investments in highways, logistics corridors, railways, industrial clusters, and urban infrastructure are expected to support sustained demand across the decorative, industrial, and protective coatings segments.

Further, increasing emphasis on sustainability, cleaner technologies, ease of doing business and industrial growth is expected to encourage greater adoption of water-based and environmentally compliant coating solutions across the Indian market.

Corporate Social Responsibility

Since the Company does not have any active business operations and profits, the provisions of Section 135 of the Companies Act, 2013 read with the rules made thereunder relating to Corporate Social Responsibility (CSR) are presently not applicable to the Company on a standalone basis. However, the entire points business operations of the Company are carried out through KCCL, a wholly owned subsidiary of the Company. Accordingly, considering the scale and operations of the paints business undertaken by KCCL, the provisions relating to CSR are applicable to KCCL and the subsidiary undertakes CSR activities in compliance with the applicable provisions of the Companies Act, 2013 and the rules made thereunder.

Further, during the year under review, KCCL initiated steps to fulfill its CSR obligations and undertook activities in line with Schedule VII of the Companies Act, 2013. The CSR activities primarily focused on skill development, undertaken as a non-ongoing project through Kamdhenu Jeevandhara Foundation, a Section 8 company registered with the Ministry of Corporate Affairs vide CSR Registration No. CSR00002398.

Further, during FY 2025-26, the KCCL has spent ? 11.30 Lakhs (Rupees Eleven Lakh Thirty Thousand Only) toward the aforementioned initiative through Kamdhenu Jeevandhara Foundation.

Company Overview

Kamdhenu Ventures Limited (hereinafter referred to as Kamdhenu Ventures, KVL or the Company) is the holding company of Kamdhenu Colour and Coatings Limited (KCCL), its wholly owned subsidiary engaged in the decorative paints business under the brand Kamdhenu Paints.

Over the years, Kamdhenu Paints has established a strong presence in the Indian decorative paints market, supported by a strategy centered on premiumization, distribution expansion, and deeper penetration across Tier II, Tier III and rural markets.

Kamdhenu Paints offers a diversified portfolio of decorative paint products, including premium interior and exterior emulsions, dual emulsions, textured paints, wood coatings, designer finishes and construction-related coating solutions. Supported by advanced manufacturing capabilities and a growing tinting infrastructure, KCCL continues to align product development initiatives with evolving customer preferences and application requirements.

During FY 2025-26, KCCL further strengthened the Kamdhenu Paints portfolio, with water-based products accounting for a significant share of the overall product mix. Supported by stronger dealer engagement and focused brand-building initiatives, the continued emphasis on premiumization helped enhance product positioning and expand market reach across geographies.

Through Kamdhenu Paints, KCCL has built a robust distribution ecosystem comprising a widespread dealer network, multiple sales depots and a strong painter engagement base across the country. The business continues to focus on deepening dealer relationships, expanding market presence and enhancing customer accessibility through its distribution and tinting infrastructure.

Kamdhenu Paints maintains a strong presence across North and East India and is steadily expanding its footprint across South, West and Central India through focused market development initiatives and strategic partnerships. During FY 2025-26, the brand further amplified its visibility through dealer engagement programs, promotional campaigns, celebrity-led associations and digital marketing initiatives aimed at improving customer outreach and brand recall.

FY 2025-26 Highlights (KCCL)

36,000 KL p.a.	4,440+	31	1,780+
Installed Capacity	Dealer Network	Sales Depots	Tinting Machines

Key Performance Highlights (KCCL)

Product Mix (in %)

Water-based Products	Powder-based Products	Solvent-based Products
FY 2025-26: 83%	FY 2025-26: 7%	FY 2025-26: 10%
FY 2015-16: 58%	FY 2015-16: 20%	FY 2015-16: 22%

Average Selling Price per KG/Liter ( ? )

FY 2025-26	FY 2024-25	FY 2015-16
86	87	58

Expanding Dealer Network and Channel Engagement

During FY 2025-26, Kamdhenu Paints expanded its dealer network to over 4,440 dealers, further strengthening its distribution reach across the country. The brand maintains a strong presence in North and East India, while steadily expanding its footprint across Central, South and West India.

Over the years, Kamdhenu Paints has strategically transitioned toward a more premium product portfolio, with water-based products contributing 83% of the overall product mix in FY 2025-26 compared to 58% in FY 2015-16. This shift toward premiumization, supported by stronger dealer engagement, focused branding initiatives and enhanced product positioning, has helped improve the average selling price per kg/liter from ? 58 in FY 2015-16 to ? 86 in FY 2025-26.

Revenue Split (FY 2025-26)

Region	Percentage
North	40%
East	32%
South	4%
Central	9%
West	15%

Dealer Split (FY 2025-26)

Region	Percentage
North	40%
East	26%
South	14%
Central	11%
West	9%

The dealer network remains actively engaged through structured incentive programs, competitive dealer margins, annual recognition initiatives, cultural events, and company-sponsored domestic and international trips. These initiatives have strengthened dealer loyalty, enhanced channel relationships and supported long-term business growth.

North and East India continue to contribute a significant share of revenue, supported by a mature and well-established dealer base. At the same time, dealer presence across Central, South and West India exceeds the current revenue contribution from these regions, providing a platform for future growth and deeper market penetration. Going forward, Kamdhenu Paints expects growth to be driven by continued premiumization, expansion of dealer reach and increasing penetration across underserved markets.

Strengthening Tinting Reach and Operational Efficiency

Kamdhenu Paints has deployed over 1,780 active tinting machines across its dealer network during FY 2025-26, enabling on-demand creation of a wide range of shades through the computerized blending of colorants and paint bases. This infrastructure supports faster shade availability, improves customer responsiveness and enhances service levels across markets.

The advanced tinting network reduces dependence on large inventories by enabling just-in-time delivery at dealer locations. It optimizes storage utilization, minimizes excess paint generation and improves operational efficiency across the value chain. In addition, the network supports shorter replenishment cycles and enhances supply chain responsiveness across the distribution ecosystem.

Capital Infusion

During Q4 2025-26, the Company raised ? 5.04 Crores through the preferential allotment of 2.96 Crores convertible warrants to Kamdhenu Limited. During the quarter, Kamdhenu Limited converted 1.46 Crores warrants into equity shares, resulting in an additional capital infusion of ? 7.47 Crores. The corresponding equity shares were allotted on 30th March, 2026. As of March 31, 2026, the remaining 1.50 Crores warrants were outstanding for conversion within the prescribed 18-month period, against which the Company had already received ? 2.55 Crores.

Pricing and Margin Management

In response to crude-linked raw material inflation driven by geopolitical developments in West Asia, KCCL plans to implement calibrated price increases over the coming quarters. Alongside pricing actions, the business continues to focus on premiumization and value-added products to support margin stability and profitable growth.

Financial Metrics

Kamdhenu Ventures Limited, through its wholly owned subsidiary Kamdhenu Color and Coatings Limited, reported consolidated revenue from operations of ? 245.3 Crores in FY 2025-26, compared to ? 266.1 Crores in FY 2024-25. Performance during the year was impacted by softer demand, competitive intensity, and input cost volatility. Despite these headwinds, the business remained focused on premiumization, distribution expansion, and market development to strengthen its long-term growth platform.

Key Ratios (Consolidated Basis)

Particulars	FY 2025-26	FY 2024-25	% Change	Reason for change by 25% or more
Current Ratio (in Times)	2.51	2.50	0.40%	N.A.
Debt-Equity Ratio (in Times)	0.19	0.16	18.75%	N.A.
Debt Service Coverage Ratio (in Times)	0.68	2.34	(70.93)%	Due to decrease in profit
Return on Net Worth (in %)	0.11%	4.02%	(97.19)%	Due to decrease in profit
Inventory Turnover Ratio (in Times)	3.98	4.01	(0.75)%	N.A.
Trade Receivable Turnover Ratio (in Times)	1.72	1.89	(8.99)%	N.A.
Trade Payable Turnover Ratio (in Times)	2.54	2.41	5.39%	N.A.
Net Capital Turnover Ratio (in Times)	1.80	2.08	(13.46)%	N.A.
Net Profit Ratio (in %)	0.08%	2.50%	(96.80)%	Due to decrease in profit
Return on Capital Employed (in %)	2.17%	6.44%	(66.29)%	Due to decrease in profit
Interest Coverage Ratio (in Times)	1.13	4.13	(72.64)%	Due to decrease in profit
Operating Profit Margin (in %)	3.87%	6.32%	(38.77)%	Due to decrease in profit

Risk Management

Since the entire points business is carried out through KCCL, a wholly owned subsidiary of KVL, the management of the Company regularly reviews, monitors and undertakes mitigation measures in respect of the risks associated with the points business to ensure effective risk management and sustainable business operations.

Key risks and mitigation strategies are outlined below:

Risk Area	Impact	Mitigation Strategy
Market and Demand	Demand fluctuations, pricing pressures, changing consumer preferences and volatility in input costs may impact revenue growth and profitability. Rural demand variability and competitive intensity in the points sector may further affect performance.	The Company focuses on premiumization, distribution expansion and deeper penetration across Tier II, Tier III and rural markets. Product innovation, brand-building initiatives and agile pricing strategies support market responsiveness and customer engagement.
Raw Material and Supply Chain	Volatility in crude-linked raw material prices, supply disruptions, logistics constraints and higher transportation costs may impact production schedules and margins.	The Company mitigates these risks through diversified sourcing, long-term supplier relationships, inventory planning and continuous monitoring of procurement and supply chain operations to ensure business continuity and efficiency.
Regulatory and Compliance	Changes in environmental regulations, product standards, taxation policies and statutory requirements may increase compliance obligations and operating costs.	The Company maintains a structured compliance framework, monitors regulatory developments, and ensures adherence to applicable environmental, safety, and quality standards, while strengthening sustainable business practices.
Financial	Fluctuations in interest rates, liquidity pressures, working capital requirements and customer credit exposure may impact financial performance and cash flows.	The Company follows prudent financial management practices, including disciplined working capital management, receivables monitoring, cash flow oversight and strong internal financial controls.
Competitive Intensity	Increasing competition from established players, regional brands and new entrants with aggressive pricing and expansion strategies may impact market share.	The Company focuses on strengthening dealer and painter relationships, enhancing brand visibility, expanding market presence and offering differentiated product solutions to sustain competitive positioning.
Technology and Cybersecurity	Dependence on digital systems, ERP platforms and technology-enabled operations exposes the Company to cybersecurity threats, data breaches and potential operational disruptions.	The Company continues to strengthen its IT infrastructure, cybersecurity protocols, access controls and data protection systems. Regular monitoring and technology upgrades further safeguard business continuity and information security.
Brand and Goodwill Risk	Product quality issues or inconsistent customer experiences may impact brand reputation and stakeholder trust.	Strict quality controls, periodic audits, and continuous technical support and training for franchisee units help safeguard brand integrity.

Human Resource Development and Industrial Relations

Since the entire paint business is operated through the Companys wholly owned subsidiary, Kamdhenu Colour and Coatings Limited, and the Company does not carry out any separate business activities. The Company has only three permanent employees on its payroll (KMPs) as of 31st March, 2026, while the remaining workforce is employed by the Companys wholly-owned subsidiary.

Internal Control System and its Adequacy

The Company has established an internal control framework commensurate with the size, scale and complexity of its operations. The framework supports orderly and efficient conduct of business and safeguards organizational assets. It also helps ensure accurate and complete accounting records, reliable financial reporting, and compliance with applicable laws, regulations and internal policies.

The Companys internal control systems cover all key operational, financial and compliance functions. Structured policies, standard operating procedures and monitoring mechanisms support consistent implementation across the organization.

The framework incorporates defined approval mechanisms, periodic reviews, process-level controls and risk-based monitoring systems to detect and address deviations in a timely manner. Internal audits are conducted periodically to assess the adequacy and effectiveness of controls and governance processes. Audit observations are reviewed by the management and the Audit Committee, and corrective actions are implemented wherever required.

The Company continues to strengthen its internal control environment through ongoing evaluation of systems, processes and digital capabilities. This approach ensures alignment with evolving business requirements and industry best practices.

Audit findings, management responses, and action-taken reports are periodically reviewed by senior management and placed before the Audit Committee for guidance and oversight.

Internal financial controls are integral to the broader Enterprise Risk Management framework, enabling proactive identification and mitigation of financial and reporting risks. During FY 2025-26, the Company remained compliant with the applicable provisions of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.

The internal control framework provides reasonable assurance on the:

? Accuracy and completeness of accounting records and timely financial disclosures

? Reliability of financial and operational information

? Compliance with applicable laws and regulations

? Protection of assets against unauthorized use or disposition

? Execution of transactions in accordance with management authorization and corporate policies

? Minimization of errors and irregularities through preventive controls

The Company has also adopted FINTRAKS, an automated platform provided by KFin Technologies Limited, for maintaining the Structured Digital Database in compliance with the SEBI (Prohibition of Insider Trading) Regulations, 2015. This has fortified compliance monitoring and enhanced the effectiveness of internal control measures relating to insider trading.

Cautionary Statement

The statements made in the Management Discussion and Analysis Report regarding the Companys objectives including Kamdhenu Paints, projections, estimates and expectations may be considered as forward-looking statements as defined under applicable securities laws and regulations. These statements are based on certain assumptions and expectations of future events, which the Company believes to be reasonable at this point in time. However, actual results may differ materially from those expressed or implied due to various risks and uncertainties.

Important factors that could influence the Companys including Kamdhenu Paints operations include changes in domestic and global economic conditions, industry demand-supply dynamics, fluctuations in raw material prices, changes in government regulations and taxation policies, competitive intensity, and other industry-specific developments.

The Company undertakes no obligation to publicly amend, modify or revise any forward-looking statements based on subsequent developments, information or events.