Macobs Technologies Ltd Management Discussions

GLOBAL ECONOMY OVERVIEW:

The global economy remained resilient during FY 2025—26, although growth continued to be influenced by geopolitical uncertainties, evolving trade policies, inflationary pressures and relatively tight financial conditions. The global economic environment remained challenging, with variations in growth across major economies.

Advanced economies continued to witness moderate growth, while emerging and developing economies remained important contributors to global economic activity. Persistent geopolitical tensions, fluctuations in commodity prices, supply-chain disruptions and changes in monetary policies across major economies continued to present challenges to businesses globally.

Inflationary pressures moderated from the elevated levels witnessed in previous years; however, inflation in several economies remained above the respective central bank targets. Central banks continued to maintain a cautious approach towards monetary policy, balancing inflation management with the need to support economic growth.

Going forward, global economic growth is expected to remain steady but moderate, with businesses continuing to focus on operational efficiency, digital transformation, innovation and resilience to navigate the evolving economic environment.

INDIAN ECONOMY OVERVIEW:

The Indian economy continued to demonstrate resilience and remained among the faster-growing major economies during FY 2025-26. Economic activity was supported by strong domestic consumption, continued investment, infrastructure development, increasing digitalisation and structural reforms undertaken by the Government.

Domestic demand remained an important driver of economic growth, supported by improving consumer confidence, rising disposable incomes and increased penetration of digital services. Rural demand also continued to contribute to overall consumption, while urbanisation and the expanding middle class supported demand across various consumer-oriented sectors.

The Reserve Bank of India continued to adopt a balanced monetary policy approach with a focus on maintaining price stability while supporting sustainable economic growth. Indias expanding digital infrastructure, favourable demographic profile, growing entrepreneurial ecosystem and increasing adoption of technology continue to provide a strong foundation for long-term economic development.

Despite uncertainties in the global economic environment, Indias strong domestic fundamentals, policy initiatives and expanding consumer base provide a favourable environment for businesses across sectors.

BUSINESS OVERVIEW:

Our Company operates in the male grooming industry, with a focus on below-the-belt grooming products and services.

Our Company conducts its business primarily through e-commerce channels and offers a range of products designed to address the evolving grooming and personal care requirements of men. Its product portfolio includes specialised trimmers, hygiene products tailored for male skin and other personal care and self-care products.

Our Company remains focused on developing and offering products with an emphasis on innovation, safety, quality and effectiveness, while seeking to understand and address the specific requirements of its target customers.

In addition to its product offerings, Our Company seeks to create greater awareness around male grooming and personal care by leveraging digital platforms and online content. Through its digital presence, the Company endeavours to encourage greater awareness and open conversations around aspects of mens grooming and hygiene that have traditionally received limited attention.

Our Companys business approach remains customer-centric, with emphasis on understanding changing consumer preferences, obtaining customer feedback and strengthening engagement through digital channels. The Company continues to evaluate opportunities for expanding its product offerings and strengthening its presence in the growing mens grooming market.

INDUSTRY OVERVIEW:

The Indian mens grooming industry continued to witness significant growth during FY 2025-26, supported by increasing awareness regarding personal hygiene, grooming, wellness and self-care among men. Changing social attitudes and greater emphasis on personal appearance have contributed to the increasing adoption of grooming products among male consumers.

The increasing influence of social media, digital content and global lifestyle trends has made consumers more conscious of their appearance and personal grooming. Celebrities, influencers and digital creators have also played an important role in shaping consumer preferences and encouraging greater adoption of grooming products.

Men are increasingly seeking products specifically formulated for their grooming and skincare requirements, resulting in growing demand across categories such as skincare, haircare, beard care, personal hygiene and other grooming products. The availability of a wider variety of products through e- commerce platforms has further improved accessibility and convenience for consumers across India.

Consumers are also becoming increasingly conscious of product ingredients, safety, quality and sustainability. This has encouraged industry participants to focus on product innovation and develop formulations and products aligned with evolving consumer preferences, including products positioned around skin-friendly, safe and responsible ingredients.

The growth of disposable income, increasing urbanisation, changing lifestyles and greater awareness of personal appearance are expected to continue supporting the growth of the mens grooming industry in India. The increasing adoption of e-commerce and digital-first brands is also creating opportunities for companies operating in this segment to reach a wider consumer base.

HUMAN RESOURCES:

The Company recognises that its committed and talented workforce is one of its key assets and an important contributor to its sustainable performance and long-term growth.

The Company remains committed to attracting, developing and retaining relevant talent and provides employees with opportunities to enhance their knowledge, skills and capabilities. The Company seeks to foster a work environment based on professionalism, teamwork, ethical conduct and responsibility.

Employees are encouraged to contribute towards the Companys objectives and are supported through appropriate development and engagement initiatives. The Company also endeavours to inculcate a strong sense of business ethics, accountability and social responsibility among its employees.

Relations with employees at all levels remained cordial during the year under review. The Company had 16 permanent employees as on March 31, 2026.

INTERNAL CONTROL MECHANISM:

The Company has adequate internal control procedures commensurate with its size, scale and nature of business. The Company has established policies, guidelines and procedures forming part of its internal control framework to ensure effective and efficient operations, safeguarding of assets, reliability of financial reporting and compliance with applicable laws and regulations.

The adequacy and effectiveness of the internal control systems are reviewed by the management at regular intervals. The internal control framework encompasses the Companys business processes, operational activities and financial reporting systems.

The internal auditors conduct periodic reviews of the Companys processes and controls to identify areas of improvement and provide recommendations for strengthening the internal control environment. The observations and recommendations arising from such reviews are considered by the management and, where applicable, discussed by the Audit Committee to facilitate timely corrective and preventive actions.

The Company continues to strengthen its internal control systems in line with the growth and evolving requirements of its business.

DISCLAIMER CLAUSE:

Statements in the Management Discussion and Analysis Report describing the Companys objectives, projections, estimates, 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.

Important factors that could make a difference to the Companys operations include economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Company operates, changes in the Government regulations, tax laws, and other statutes and incidental factors.

KEY RATIOS:

	For the period ended 31st March, 2026
Particulars	31-Mar-26	31-Mar- 25	%Change	Reason for Variance (For Variation of More than 25%)
Current Ratio (in times)	10.96	9.55	14.67%	NA
Debt Equity ratio (in times)	0.01	0.02	(44.23)%	The ratio has decreased due to a significant increase in Total Equity.
Debt Service coverage Ratio (in times)	7.11	2.09	240.03%	The ratio has decreased due to a significant Decrease in Total Debt Service.
Return on Equity (in %)	0.06	0.09	(30.68)%	This is mainly due to the significant increase in equity shareholder funds compared to net profit.
Inventory Turnover ratio (in times)	2.66	1.08	146.39%	This is mainly due to the significant increase in COGS as compared to Avg. Inventory.
Trade Receivable Turnover ratio (in times)	10.99	20.36	(46.01)%	This is mainly due to the significant increase in Avg. Trade Receivable.
Trade Payable Turnover ratio (in times)	24.78	23.23	6.70%	NA
Net Capital Turnover Ratio (in times)	0.83	0.84	(0.91)%	NA
Net Profit Ratio (in %)	0.08	0.11	(30.05)%	This is mainly due to Significant increase in Share Capital as compared to Net Profit.
Return on Capital Employed (in %)	0.09	0.13	(31.54)%	This is mainly due to the significant increase in Net Capital compared to EBIT.
Return on Investment	-	0.14	(100.00)%	This is mainly due to the no return on the value of Investment.