Lakhotia Polyesters India Ltd Management Discussions

This report covers the operations and financial performance of the Company for the year ended March 31, 2026, and forms an integral part of the Annual Report.

Overview of the Economy:

The Company specializes in lacquered metallized polyester films, which find application primarily in the textile and apparel industry. The grade of coated polyester film produced is used extensively in the manufacture of metallic yarns.

The polyester film (BOPET/PET film) industry is closely linked to global economic growth, consumer spending, manufacturing activity, energy prices, and international trade. The current global economic environment presents both opportunities and challenges for manufacturers. The global economy is experiencing moderate growth, supported by resilient consumer demand in emerging markets, infrastructure investments, and continued industrial expansion in Asia.

Inflation has eased in many economies compared with previous years, although interest rates remain relatively elevated in several developed markets, influencing investment decisions. Stable economic growth supports demand for packaging, electrical insulation, industrial laminates, and specialty films. Slower growth in developed economies limits demand in mature markets but is offset by stronger consumption in Asia.

Industry, Structure & Developments:

The global polymer film industry comprises manufacturers that produce thin plastic films from polymer resins such as polyethylene (PE), polypropylene (PP), polyethylene terephthalate (PET), polyamide (PA), polyvinyl chloride (PVC), and specialty polymers. These films serve a broad range of industries, including packaging, electronics, healthcare, construction, agriculture, automotive, and renewable energy.

Polyester (BOPET) film represents one of the fastest-growing segments due to its excellent mechanical strength, thermal stability, optical clarity, and barrier properties. Packaging remains the largest end-use application, while electronics, solar energy, and electric vehicles are driving demand for higher-value specialty films.

Strategically, the Company continues to position itself for international expansion, targeting opportunities in global trade networks to diversify its geographic presence.

Operational and Financial Performance :

During the financial year 2025-26, the company navigated a shifting demand landscape, reflecting the following audited numbers:

Revenue from Operations: The revenue from operations of your Company for the year ended March 31, 2026, stood at Rs. 1,976.00 Lakhs ( 19.76 Crore).

Net Profit: Your Company has earned a net profit of Rs. 238.00 Lakhs ( 2.38 Crore) during the year under review.

Net Profit Margin: The net profit margin achieved by the company for the financial year was 12.04%.

Risk and Concerns:

The largest component of costs involved in making flexible packaging film is attributable to raw materials. Given the volatile trend in polyesters and demand for polyesters for competing applications, the pressure on input costs can be expected to fluctuate. Supply chain disruptions, raw material pricing dynamics, and broader macroeconomic cost inflation remain key areas of active management observation.

Adequacy of Internal Control System:

The Company has adequate internal control systems for business processes in respect of all operations, financial reporting, compliance with laws and regulations, etc. The management information system forms an effective and sound tool for monitoring and controlling all operating parameters. Regular internal audits ensure that responsibilities are executed effectively. The Audit Committee reviews the adequacy of internal controls on a regular basis.

Human Resource Development:

The Company recognizes that its human resource is its primary strength in realizing its organizational goals and objectives. Employee upskilling and a supportive environment remain central pillars of our operational blueprint

Cautionary Statement:

Statements in this Management Discussion and Analysis report describing the Companys outlook, projections, estimates, expectations, or predictions may be Forward-looking Statements within the meaning of applicable securities laws or regulations. Actual results could differ materially from those expressed or implied based on global economic shifts, raw material availability, and statutory updates.