Kanani Industries Ltd Management Discussions

Economic Overview:

Indian Economy Overview:

The Indian economy in 2025-26 demonstrated steady strength against a global backdrop of trade uncertainty and market swings. The Second Advance Estimates finalised real GDP growth at 7.6% and Gross Value Added at 7.7%, highlighting the durability of a growth model led by domestic demand. Strong agricultural output supported rural incomes, while urban consumption improved due to steady employment and lower inflation

India continues to remain one of the worlds fastest-growing major economies, supported by resilient domestic demand, strong investment activity, and ongoing structural reforms. The country is expected to maintain its strong growth momentum and may improve its global ranking over the medium term as economic expansion continues.

The outlook for the Indian economy remains positive and stable. For the upcoming FY 2026-27, real GDP is expected to grow between 6.8% and 7.2%. This is expected to be driven by continued government spending on infrastructure, a steady increase in private sector investment, and a strengthening manufacturing base. Additionally, the services sector is expected to maintain its consistent expansion.

At Deepjyoti Textiles, we continue to monitor these developments closely. While several economic uncertainties remain, opportunities are emerging and we well positioned to capture these.

Global Economy:

The global economy entered a period of increasing complexity in 2025, with growth supported by easing inflation and investment activity, while geopolitical developments and trade uncertainties continued to weigh on the outlook. World GDP expanded by 3.4%, supported by continued investment in technology, resilient labour markets and moderating inflationary pressures. Advanced economies grew by 1.9%, while emerging market and developing economies outperformed with growth of 4.4%, led by India and China.

The global economy is projected to move toward steady growth of 3.1% in 2026, before easing slightly to 3.2% in 2027. A move toward technology-led productivity drives this progress, as artificial intelligence becomes more integrated into industrial and medical fields. This shift helps balance the effects of trade tensions and changing political pressures.

Industry Overview:

Indian Jewelry Market India has long held a dominant position in the global jewellery industry, being one of the largest consumers, manufacturers, and exporters of gold and diamond jewellery. Jewellery in India is not just an adornment but a deep-rooted cultural symbol linked with traditions, festivals, and ceremonies especially weddings, which drive a significant portion of the annual demand. The Indian jewellery market is broadly classified into:

Gold Jewellery (plain and studded)

Diamond and Precious Stone Jewellery

Silver and Platinum Jewellery

Antique, Bridal, and Designer Collections

The market is characterized by a large unorganized sector with traditional artisans and family-run businesses, a rapidly growing organized sector, led by branded chains and listed companies and a shift from traditional retail to digital and omni-channel platforms.

OPPORTUNITIES AND THREATS:

Following can be termed as the opportunities / strengths of the Company:

- Induction of widely experienced and specialized personnel on the Board.

- Good combination of technical as well as advisory personnel in the management.

- Some of the world retail majors have decided sometime back to source part of their requirements from India. This shall further the growth of the Diamond industry in India.

- The unfavorable government policies cut throat competition amongst manufacturers and exporters remains major concerns for the Gems and Jewellery Business.

OUTLOOK

Growth of the Gems and Jewellery Industry is expected to be moderate to better in the years to come depending on the policies of the Government. However Gems and Jewellery Industry is seeing robust growth in the years to come. The Growth rate of the Gems and Jewellery Industry is closely related to the growth of the other Sector and hence movements and developments in the other sectors would also indirectly affect the future of Gems and Jewellery Industry.

CHANGES IN KEY FINANCIAL RATIOS:

Pursuant to provisions of Regulation 34 (3) of SEBI (LODR) Regulation, 2015 read with Schedule V part B(1) details of changes in Key Financial Ratios is given hereunder:

Sr. No. Key Financial Ratio		FY 2025 - 26	*FY 2024 - 25
1. Debtors Turnover Ratio	Times	345.36
2. Inventory Turnover Ratio	Times	0.08
3. Interest Coverage Ratio	Times	0.30	1.39
4. Current Ratio	Times	3.05	3.09
5. Debt Equity Ratio	Times	0.01
6. Operating Profit Margin	%	3.41
7. Net Profit Margin	%	2.87
8. Change in Return on Net Worth	%	0.65	0.13

*Previous years Figures have been regrouped / rearranged wherever necessary

RISK AND CONCERNS

Looking at the scenario in India in case of gems and jewellery industry, Risks associated with operating in a particular industry and include risks arising from demand changes, changes in customers choice and industry changes. Gold price fluctuation risk could arise on account of frequent changes in gold prices either up or downside momentum. It could have adverse impact on earnings. Forex risks could arise from the company being exposed to foreign currency fluctuations which could impact its rupee earnings. Diamond prices usually are not very volatile over a long period of time.

DISCUSSION ON FINANCIAL PERFORMANCE OF THE COMPANY:

During the year under review, the Standalone total Income was Rs. 1149.37 lacs as against Rs. 51.66 lacs for the corresponding previous year.

Total Comprehensive income for the period was Rs. 29.32 lacs as against Rs. 5.86 lacs in the corresponding previous year

CAUTIONARY STATEMENT

This Management Discussion and Analysis contains forward-looking statements that reflect the Companys current views and expectations with respect to future events and financial performance. These statements are based on certain assumptions and are subject to risks and uncertainties, both known and unknown, which could cause actual results, performance, or achievements to differ materially from those expressed or implied by such forward-looking statements.

Such forward-looking statements involve various assumptions, risks, and uncertainties, including but not limited to changes in market conditions, government regulations, economic developments, geopolitical factors, interest rates, raw material prices, consumer preferences, and other factors beyond the control of the Company. The Company does not undertake any obligation to publicly revise or update any forward-looking statements, whether as a result of new information, future events, or otherwise, unless required by applicable laws.

Accordingly, these statements should not be regarded as guarantees of future performance, and the actual results may materially differ from those anticipated. Readers are advised to exercise caution and not to place undue reliance on these statements, which should be considered in the context of the prevailing market and economic conditions.

	For and On behalf of the Board of Directors
	Kanani Industries Limited
	PREMJIBHAI KANANI	HARSHIL KANANI
Place: Mumbai	(CHAIRMAN, WHOLE-TIME DIRECTOR)	(MANAGING DIRECTOR)
Date: 13/08/2026	(DIN : 01567443)	(DIN : 01568262)