Kisan Mouldings Ltd Management Discussions

ECONOMIC OVERVIEW:

As per the IMF World Economic Outlook (April 2026), global economic growth is expected to remain moderate amid continuing geopolitical tensions, elevated interest rates in several economies, supply chain realignments and evolving trade dynamics. Global growth is projected at around 3.1 percent in 2026, supported by easing inflationary pressures and gradual recovery in consumption and investments across major economies. Global headline inflation is expected to moderate further due to softening commodity prices and improving supply conditions, though uncertainties arising from geopolitical conflicts, trade restrictions and financial market volatility continue to pose downside risks to the global economy.

Despite persistent global uncertainties and external headwinds, the Indian economy continued to demonstrate strong resilience and stable macroeconomic fundamentals. India remains one of the fastest growing major economies, supported by robust domestic demand, increased government capital expenditure, rising private investments and continued focus on infrastructure development. The Governments emphasis on manufacturing, digital transformation, ease of doing business and policy reforms continues to strengthen Indias long-term growth prospects.

Indias GDP growth remained healthy during FY 2025-26, driven by strong performance across key sectors including manufacturing, services and infrastructure. Consumption demand, improving rural sentiment, stable financial sector conditions and sustained public investment supported economic activity during the year. The Reserve Bank of India continued to maintain a balanced approach towards inflation management and growth support through appropriate monetary measures.

The Government of Indias continued thrust on infrastructure creation, logistics enhancement, housing development and industrial expansion is expected to further strengthen economic momentum. Additionally, initiatives under "Make in India", Production Linked Incentive (PLI) schemes and increasing focus on sustainability and green growth are expected to provide long-term opportunities for businesses across sectors. Indias strong demographic profile, rising urbanization and increasing digital adoption continue to position the country favourably for sustained economic growth in the coming years.

COMPANY OVERVIEW:

Kisan Mouldings Limited has established a strong presence in the field of plastic piping systems catering to water management, irrigation, water distribution and sewage disposal applications over the years. The Company continues to be engaged in the manufacturing and marketing of a wide range of piping solutions including Chlorinated Poly Vinyl Chloride (CPVC) and Poly Vinyl Chloride (PVC) Pipes and Fittings used in residential, commercial, agricultural and industrial sectors.

The Company offers comprehensive and reliable piping solutions through its diversified product portfolio comprising CPVC and uPVC plumbing systems, drainage systems, irrigation systems, solvent cement and related fittings. The plumbing range of the Company includes KML Classic CPVC Plumbing System and Free Flow uPVC Plumbing System (ASTM), designed to cater to varied customer requirements with quality and durability standards.

Your Company continues to focus on delivering "One-stop" piping solutions backed by its manufacturing capabilities, distribution network and customer-centric approach. The Company processes approximately 20,000- 40,000 MT of polymer annually and continues to strengthen its market presence across various regions in India.

During the year under review, the Company operated its manufacturing facilities located at Mahagaon in the State of Maharashtra and Khadoli at Silvassa for manufacturing of pipes, fittings, solvents and allied products catering to plumbing, drainage and irrigation systems.

The Company remains committed towards operational efficiency, product quality, innovation and sustainable growth while continuing to cater to the evolving needs of the infrastructure, housing, agriculture and water management sectors.

STRENGTHS:

The Management continues to undertake various strategic initiatives and operational measures aimed at strengthening the business performance, improving operational efficiencies and enhancing market presence of the Company.

Strong Brand Recognition

Over the years, the Company has established "Kisan" and "KML Classic" as recognised brands in the plastic piping industry. The Company continues to strengthen its brand positioning in plumbing, irrigation and water management systems across various regions in India through consistent product quality, customer satisfaction and market outreach initiatives.

Focus on Value-Added and High Margin Products:

The Company continues to focus on expanding its portfolio of value-added products including CPVC and uPVC fittings, solvent cement and allied products.

Continuous addition of new Stock Keeping Units (SKUs) in fittings and solvent segments has enabled the Company to offer a wider product range catering to diversified customer requirements. These products contribute towards improvement in the overall margin profile of the Company.

Manufacturing Capabilities:

The Company operates through its manufacturing facilities located at Mahagaon, Maharashtra; and Khadoli, Silvassa, enabling efficient production and supply of pipes, fittings and solvent products. The strategically located facilities support operational efficiency and timely servicing of customers across different geographical regions.

Robust Distribution Network:

The Company continues to strengthen and expand its distribution and dealer network across various markets in India. Through strategically located depots, warehouses and channel partners, the Company aims to improve product availability and customer reach in a cost-efficient manner. The Company also actively participates in exhibitions, dealer meets, plumber engagement programmes and other marketing initiatives to enhance customer relationships and expand market penetration.

Customer-Centric Approach:

The Company remains focused on understanding evolving customer requirements and providing quality products and efficient after-sales support. Continuous engagement with dealers, distributors, plumbers and end-users has helped the Company maintain longterm business relationships and improve customer satisfaction levels.

Agriculture Piping and Micro Irrigation:

Agriculture continues to play a significant role in the Indian economy and remains one of the key demand drivers for irrigation and piping products. With a substantial portion of agricultural land still dependent on monsoon rainfall, the Government of India continues to focus on improving irrigation infrastructure, water conservation and efficient water management practices across the country. Such initiatives are expected to support sustained demand for PVC pipes, fittings and micro irrigation products over the medium to long term.

The Governments continued emphasis on enhancing farmers income, improving agricultural productivity and promoting efficient irrigation techniques is expected to create growth opportunities for the plastic piping industry. Various government schemes and policy initiatives aimed at expanding irrigation coverage, strengthening rural infrastructure and promoting water-efficient farming practices are expected to positively impact the demand for agricultural piping systems.

The Pradhan Mantri Krishi Sinchayee Yojana (PMKSY), with its objective of "Har Khet Ko Pani" and "More Crop per Drop", continues to encourage efficient water usage and expansion of irrigation facilities across agricultural regions. Increased focus on micro irrigation, water transportation systems and rural infrastructure development is expected to further augment demand for plastic piping products.

The Governments initiatives towards formation and strengthening of Farmer Producer Organizations (FPOs), promotion of modern farming techniques and support towards agricultural infrastructure development are also expected to contribute towards long-term growth opportunities for the industry.

Outlook:

The outlook for the plastic piping industry continues to remain positive, supported by favorable macroeconomic factors and sustained government focus on infrastructure development, agriculture, irrigation, housing, sanitation and water management projects. Increasing urbanization, rising demand for affordable housing, expansion of water supply networks and growing awareness regarding efficient water management are expected to drive demand for plastic piping products and irrigation systems.

Further, government initiatives such as Jal Jeevan Mission, PMKSY, housing and sanitation programmes, along with continued investments in infrastructure development, are expected to provide long-term growth opportunities for the industry. Reforms such as GST and RERA continue to support organized players by improving transparency and operational efficiencies within the sector.

The Company remains focused on strengthening operational efficiencies, improving manufacturing processes and enhancing automation initiatives across its operations. Continued emphasis on optimizing the distribution network, expanding market reach and increasing contributions from value-added and high margin products is expected to support the overall profitability and competitiveness of the Company.

Your Company intend opportunities through product diversification, customer-centric initiatives, operational improvements and strategic market expansion while continuing to focus on sustainable and long-term growth.

FINANCIAL PERFORMANCE:

An overview of the financial performance is given in the Directors Report. The Audit Committee constituted by the Board of Directors periodically reviews the financial performance and reporting systems. Summary of key ratios on the Standalone and Consolidated financial statements for the Financial Year 2025-26 are as follows:

d ALIGN=RIGHT>(8.14)

Key Financial Ratio
Particulars	Standalone	Consolidated
	FY 2025-26	FY 2024-25	YOY (Change in %)	FY 2025-26	FY 2024-25	YOY (Change in %)
Ratios:
1. Current Ratio	1.12	1.24	1.12	1.24	(8.14)
2. Debt Equity Ratio	0.15	0.11	(32.97)	0.15	(0.03)	(32.97)
3. Debt Service Coverage Ratio	(0.14)	0.35	(162.54)	(0.14)	0.35	(162.54)
4. Return on Equity Ratio	(3.70)	0.02	(317.63)	(3.71)	0.02	(317.63)
5. Inventory Turnover ratio	4.01	0.20	(31.55)	4.01	0.20	(31.55)
6. Trade Receivables turnover ratio	5.48	4.11	(23.43)	5.46	4.11	(23.43)
7 Trade payables turnover ratio	3.07	0.31	(6.92)	3.07	0.31	(6.92)
8. Net Capital Turnover ratio	18.56	11.23	60.80	18.53	11.20	60.80
9. Net Profit Ratio	(2.95)	1	(332.84)	(2.97)	1	(332.84)
10. Return on capital employed	(1.83)	2	(180.43)	(1.84)	2	(180.43)
11. Return on Investment	12.65	1749	(27.63)	12.65	17.49	(27.63)

RISKS AND CONCERNS:

The Company continues to remain exposed to various business risks arising out of changes in economic conditions, fluctuations in raw material prices, inflationary pressures, changes in interest rates, geopolitical developments, global economic slowdown and volatility in foreign exchange markets. The prices and availability of major raw materials, which are largely linked to crude oil derivatives, continue to remain volatile and may impact the profitability and operational performance of the Company.

Further, changes in government policies, competitive market conditions, logistics and supply chain disruptions, increase in transportation and finance costs and fluctuations in demand across end-user industries may also impact the business operations of the Company. The Company continues to closely monitor such developments and undertake appropriate mitigation measures to minimize their impact on operations and financial performance.

The Company also faces risks relating to delays in customer orders, execution timelines and collection cycles from customers, which may impact working capital requirements and liquidity position. However, the Management continues to focus on operational efficiency, inventory management, cost optimisation and strengthening customer relationships to effectively manage such challenges.

The Company remains exposed to risks arising from lower capacity utilisation in the event of adverse market conditions or slowdown in demand. In order to mitigate such risks, the Company continues to adopt prudent production planning based on market demand and focuses on rationalisation of operational and overhead costs. Cost control, process optimisation and efficient utilisation of resources continue to remain key focus areas for the Management.

The Management continuously reviews business risks and market conditions and undertakes necessary corrective actions to safeguard the interests of the Company and its stakeholders.

INTERNAL CONTROL SYSTEM:

The Company has in place adequate internal control systems commensurate with the size, scale and nature of its business operations. The internal control framework is designed to ensure orderly and efficient conduct of business, safeguarding of assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records and timely preparation of reliable financial information.

The Company has appointed independent professional firm of Chartered Accountants, M/s. Somani & Associates, Chartered Accountants, Mumbai (FRN: 145721W), as Internal Auditors to conduct periodic internal audits of various operational, financial and statutory functions of the Company. The Internal Auditors submit their reports highlighting observations, if any, along with recommendations for strengthening internal controls and operational processes.

The Audit Committee periodically reviews the adequacy and effectiveness of the internal control systems, internal audit findings and compliance mechanisms. The recommendations of the Internal Auditors and Audit Committee are placed before the Board for its review and necessary implementation.

The Company continues to strengthen its internal financial controls, compliance systems and risk management practices to ensure transparency, accountability and efficient conduct of business operations. The Statutory Auditors of the Company have also confirmed the adequacy and operating effectiveness of the internal financial control systems in their report.

TRANSPARENCY IN SHARING INFORMATION:

The Company strongly believes in maintaining transparency, accountability and timely dissemination of information to all its stakeholders. The Company continues to follow fair disclosure practices and ensures that adequate, accurate and timely information regarding its business operations, financial performance and material developments is made available to shareholders, investors, regulatory authorities and other stakeholders.

The Company strives to provide comprehensive information through its Annual Report, corporate filings, disclosures to the stock exchanges, press publications and regular updates on the Companys website. Material information and developments are promptly intimated to the stock exchanges in compliance with the applicable regulatory requirements to ensure transparency and effective communication with stakeholders.

The Company remains committed towards maintaining high standards of corporate governance and investor relations by ensuring transparent communication and accessibility of relevant information to all stakeholders.

HUMAN RESOURCE:

Human Resource continues to remain one of the key focus areas of Kisan Mouldings Limited and the Company firmly believes that its employees are valuable assets contributing significantly towards the growth and success of the organization. The Company continues to maintain healthy and harmonious industrial and employee relations across all its locations.

The Human Resource function of the Company focuses on talent management, employee engagement, performance management, learning and development, employee welfare, workplace safety, motivation and organisational development. The Company continues to undertake various initiatives aimed at enhancing employee productivity, skill development and overall effectiveness while fostering a positive and collaborative work culture.

The Company also continues to focus on strengthening its HR policies and practices in line with evolving business requirements and industry standards. Emphasis is placed on maintaining a safe, inclusive and growth-oriented work environment for all employees.

The Management believes that continuous investment in human capital, employee well-being and capability enhancement will support sustainable growth of the Company in the long run.

The total number of permanent employees as on 31st March, 2026 was 347. employee productivity, skill development and overall effectiveness while fostering a positive and collaborative work culture.

The Company also continues to focus on strengthening its HR policies and practices in line with evolving business requirements and industry standards. Emphasis is placed on maintaining a safe, inclusive and growth-oriented work environment for all employees.

The Management believes that continuous investment in human capital, employee well-being and capability enhancement will support sustainable growth of the Company in the long run.

The total number of permanent employees as on 31st March, 2026 was 347.

CAUTIONARY STATEMENT:

Certain statements in this Management Discussion and Analysis Report may constitute "forward-looking statements" within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied in such statements. These statements reflect the Companys current views with respect to future events and are subject to various risks and uncertainties.

Important factors that could influence the Companys operations include changes in industry structure, government policies, taxation laws, economic developments, market conditions, fluctuations in raw material prices, changes in demand and supply conditions, competitive pressures, exchange rate fluctuations, industrial relations and other factors both in India and globally, which are beyond the control of the Company.

The Company undertakes no obligation to publicly amend, modify or revise any forward-looking statements on the basis of subsequent developments, information or events. This Report has been prepared based on publicly available information, internally generated data and other sources believed to be reliable.

The above discussion and analysis should be read in conjunction with the Companys Financial Statements and the notes forming part thereof included in this Annual Report.

For and on behalf of the Board of Directors For Kisan Mouldings Limited

Sd/-

Sanjeev A Aggarwal

DIN: 00064076

Chairman & Managing Director

Date: 05.05. 2026

Place: Mumbai