Madhav Marbles and Granites Ltd Management Discussions

The production during the year was 6829537 units as against 5749790 units in the previous year. The captive consumption was 2525772 units in the current year and balance units were banked with TNEB.

The Company continues to evaluate opportunities in the real estate segment with a prudent and selective approach. In the current fiscal, the Company will also focus on optimizing its existing real estate inventory and may consider monetizing identified assets where commercially appropriate. At the same time, the Company may selectively evaluate new real estate opportunities based on market conditions, expected returns, funding requirements and overall strategic fit.

The natural stone industry operates in a dynamic environment and is exposed to a range of operational, market and external risks. The key areas of concern for the industry include the following:

The availability of suitable quality granite blocks is critical to maintaining product quality and production continuity. Changes in quarrying activity, availability of commercially viable blocks and higher extraction and transportation costs can affect raw material availability and overall cost structures.

Mining and processing activities are subject to various statutory, environmental and regulatory requirements. Changes in applicable regulations, restrictions on mining activities or delays in obtaining approvals may affect the availability of raw material and operating timelines.

The industry is dependent on an efficient transportation and shipping network, particularly for exports. Freight rate fluctuations, container availability, port congestion and disruptions in international shipping routes can increase costs and affect delivery schedules.

Demand for natural stone is closely linked to construction, housing and renovation activity in major markets. Any slowdown in these markets, changes in tariffs or trade policies, geopolitical developments or shifts in customer spending can influence export volumes and realisations.

Competition in the natural stone market remains significant, both from domestic producers and international suppliers. Fluctuations in input costs, competitive pricing and pressure on selling prices may affect margins, requiring companies to continuously focus on productivity, product mix and cost efficiency.

Export-oriented businesses are exposed to movements in foreign exchange rates as well as fluctuations in fuel, power, freight and other input costs. Such movements can impact operating costs and profitability if not adequately managed.

Customer preferences in the construction and interiors segment continue to evolve, with increasing choices across natural and engineered surfaces. Maintaining product relevance, quality and design variety is important to retain market position and respond to changing demand.

Increasing emphasis on resource efficiency, responsible sourcing and environmentally conscious manufacturing is influencing the industry. At the same time, adoption of modern processing technology is becoming increasingly important for improving productivity, consistency and cost competitiveness.

The natural stone industry continues to operate in an evolving market environment, with demand influenced by global economic conditions, construction activity, consumer preferences, freight costs and developments in international trade. While near-term visibility remains subject to these factors, the underlying requirement for durable, aesthetically appealing and differentiated stone products continues to support the long-term potential of the industry.

The Company sees opportunities in strengthening its presence across existing markets while selectively developing new customers and geographies. Increasing renovation and remodelling activity, infrastructure development and demand for premium and customised surfaces are expected to provide opportunities for value- added products. The continued acceptance of Indian natural stone in international markets also provides scope for expanding the Companys export business.

During FY 2025-26, the Company continued to focus on improving operational efficiency and strengthening its ability to respond to changing market conditions. Going forward, the key areas of focus will include:

reduction in operational inefficiencies.

competitive in a fluctuating cost environment.

market requirements.

domestic markets.

The Company remains cautiously optimistic about the medium- to long-term prospects of the natural stone business. Management will continue to closely monitor market conditions and adjust production, sourcing and sales strategies in line with demand. A disciplined approach to costs, customer relationships, product development and operational efficiency is expected to support sustainable growth and strengthen the Companys competitive position.

The Companys Internal Control Systems are commensurate with the nature, size and complexity of its business. The internal financial controls are in place and policies and procedures have been adopted for ensuring the orderly and efficient conduct of business, adherence to Companys policies, safeguarding of assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records and timely preparation of reliable financial information.

Internal audits are conducted periodically to ensure that the assigned responsibilities are carried out effectively. The Audit Committee provides necessary oversight and directions to the internal audit function and periodically reviews the findings and ensures corrective measures are taken.

The Company considers its Human Resource as its most important asset and makes sustained efforts for the development of its manpower and also encourages them to continuously upgrade and improve their skills and qualifications.

The Executive Directors makes declaration at each Board Meeting on quarterly basis, regarding compliance with applicable provisions of various statues and regulations.

Statement on the Management Discussions and Analysis and current years outlook are Managements perception & understanding drawn from the regional and global macro-economic cues at the time of drawing this report. Actual results may be materially different from those expressed in the statements. Important factors which could influence the Companys operations include demand & supply conditions, availability of input and relative prices in the domestic & global markets, Change in Government policies, tax laws, economic development within the country & foreign countries in which the Company has business presence.