Malpani Pipes & Fittings Ltd Management Discussions

Overview

The purpose of this report is to present Managements insights into the external environment and the industry, alongside discussions on strategy, operational and financial performance, key developments in human resources and industrial relations, as well as an assessment of risks, opportunities, and the adequacy of internal control systems during the Financial Year 2025-26. It should be reviewed in conjunction with the Companys financial statements, including schedules, notes, and other sections of the Integrated Report and Annual Accounts for 2025-26. The Companys financial statements have been prepared in accordance with Accounting Standards ( AS), adhering to the requirements specified under the Companies Act, 2013, as amended, and regulations prescribed by the Securities and Exchange Board of India (SEBI).

As per the International Monetary Fund s July 2026 World Economic

Outlook Update, global economic growth is projected at 3.0% in 2026, followed by a recovery to 3.4% in 2027. The forecast reflects the competing effects of the Middle East conflict, which is adversely affecting energy-importing and vulnerable economies, and stronger technology-led activity driven by artificial intelligence investment and adoption. Global headline inflation on is expected to increase from 4.1% in 2025 to 4.7% in 2026, before moderating to 3.9% in 2027.

Regional Growth Projections:

United States: Growth is projected at 2.3% in 2026. The economy remains relatively resilient, supported by its position as a net energy exporter, although trade uncertainty and a possible reassessment of AI related expectations remain key risks.

Eurozone: Growth is forecast at 0.9% in 2026, recovering to 1.2% in 2027. Elevated energy costs, weaker confidence and tighter financial conditions are weighing on the region s outlook.

China: Growth is projected at 4.6% in 2026, before slowing to 4.1% in 2027. The near-term outlook has improved due to stronger-than-expected activity and technology-related exports, while structural challenges and external uncertainty continue to constrain growth.

Policy Recommendations

The IMF recommends a flexible, country specific policy approach that preserves price and financial stability while limiting the impact on economic activity. Fiscal support should be temporary and targeted towards vulnerable households, alongside credible measures to rebuild fiscal buffers and maintain debt sustainability. Structural reforms should focus on productivity, workforce skills, AI and digital adoption, energy security and investment. The IMF also calls for stronger international cooperation to reduce trade uncertainty, address debt vulnerabilities and improve resilience to global shocks.

The global economy started 2024 with the confidence that inflation was largely beaten and that major economies would likely avoid recession. But as the year drew to a close, a nagging worry crept in: inflation proved to be much stickier than we d hoped. While the US economy powered ahead, many other developed nations struggled to keep pace. On top of that, many countries saw their currencies lose value, a situation that could become especially tricky for developing economies.

Stepping in 2025, the global economic activity is expected to maintain modest momentum in 2025 owing to the likely shift in policy following numerous elections around the world. New policies could lead to new trajectories for inflation, borrowing costs, and currency values, as well as trade flows, capital flows, and costs of production. According to the IMF, the global economy is expected to grow at 3.3% both in 2025 and 2026, primarily on account of an upward revision in the United States offsetting downward revisions in other major economies. Global headline inflation is expected to decline to 4.2% in 2025 and to 3.5% in 2026, converging back to target earlier in advanced economies than in emerging market and developing economies.

Global headline inflation is expected to decline to 4.2% in 2025 and to 3.5% in 2026, converging back to target earlier in advanced economies than in emerging market and developing economies.

Growth projections for advanced economies are taking different paths. In the United States, strong consumer demand continues to drive momentum, supported by rising wealth, a relatively flexible monetary policy, and favorable financial conditions. The economy is expected to grow by 2.7% in 2025 0.5 percentage points higher than the previous forecast in October. This upward revision reflects the carryover effect from 2024, along with a resilient job market and increasing investments. However, by 2026, growth is anticipated to gradually ease, aligning with its long-term potential. Growth in the euro area is expected to improve, but at a slower pace than previously anticipated. Ongoing geopolitical tensions continue to dampen confidence, and weaker-than expected momentum in late 2024 particularly in manufacturing has led to a downward revision of the 2025 growth forecast to 1.0%, 0.2 percentage points lower than earlier estimates. However, by 2026, growth is projected to reach

1.4%, driven by stronger domestic demand as financial conditions ease, confidence strengthens, and uncertainty gradually subsides. The economy is expected to grow by 2.7% in 2025 0.5 percentage points higher than the previous forecast in October. This upward revision reflects the carryover effect from 2024, along with a resilient job market and increasing investments. However, by 2026, growth is anticipated to gradually ease, aligning with its long-term potential.

Meanwhile, India s economy is projected to maintain a robust growth rate of 6.5% in both 2025 and 2026, consistent with earlier forecasts and aligned with the country s long-term potential. Economic growth in the Middle East and Central Asia is expected to improve, though not as much as previously anticipated. A key factor behind this adjustment is the 1.3 percentage point downgrade in Saudi Arabia s 2025 growth forecast, largely due to the extension of OPEC+ production cuts.

Global Economy

The global economy in 2025 26 faces a subdued and bumpy expansion, with global growth projected between 2.5% and 3.1%. Geopolitical tensions, energy market disruptions from Middle East conflicts, and shifting trade policies have slowed down the post-pandemic recovery and triggered a pause in global disinflation.

After withstanding higher trade barriers and elevated uncertainty last year, global activity now faces a major test from the outbreak of war in the Middle East. Assuming that the conflict remains limited in duration and scope, global growth is projected to slow to 3.1 percent in 2026 and 3.2 percent in 2027. Global headline inflation is projected to rise modestly in 2026 before resuming its decline in 2027. Slowdown in growth and increase in inflation are expected to be particularly pronounced in emerging market and developing economies.

Outlook

According to the IMF, factoring in recent market trends and the impact of rising trade policy uncertainty, the uncertainty surrounding the global economy is expected to persist throughout 2025. However, the probable impact of any potential policy changes that are still under discussion. The global economic outlook remains cautiously optimistic despite persistent geopolitical and economic uncertainties. While growth is expected to moderate in the near term, easing inflationary pressures, technological advancements, and gradual stabilization of global trade are likely to support economic recovery over the medium term. However, risks arising from geopolitical conflicts, supply chain disruptions, trade fragmentation, and financial market volatility continue to warrant close monitoring. Going forward, economies that maintain prudent fiscal and monetary policies, embrace innovation, and strengthen international cooperation are expected to be better positioned to achieve sustainable growth and resilience in an increasingly complex global environment.

In 2025, energy commodity prices are expected to decline by 2.6%, largely due to weaker oil demand from China and increased supply from non-OPEC+ countries (which includes Russia), though rising gas prices caused by colder weather, supply disruptions, and ongoing conflicts in the Middle East partly offset the decline. Meanwhile, non-fuel commodity prices are projected to rise by 2.5%, mainly driven by higher food and beverage costs due to adverse weather affecting major producers. On the monetary front, major central banks are expected to continue lowering interest rates, though at different speeds, depending on their respective economic growth and inflation outlooks. Fiscal policies in advanced economies, including the U.S., are expected to tighten in 2025 26, with a lesser degree of tightening in emerging and developing markets.

Global Steel and Tubes Industry

Global steel demand in CY 2025 is stabilizing at 1.75 Billion tons, marking the trough of the current cycle, with recovery expected from CY 2026 onwards. While infrastructure spending and energy transition investments provide underlying support, demand remains constrained by China s structural slowdown overcapacity. Regional divergence is becoming more pronounced, with growth led by India, ASEAN, and the Middle East, while Europe remains structurally challenged. The global steel tubes market (USD 80-85 Billion) is entering a multi-year upcycle, driven by a global energy infrastructure investment cycle, particularly in the Middle East, where 150 pipeline projects are underway. This is accelerating the shift towards high-value, specialized products such as seamless pipes and large-diameter line pipes. Structurally, the industry is transitioning from commoditized steel towards value added, application-specific supported by energy products, transition, decarbonization, and industrial policy trends.

The global steel tubes and pipes industry continued to witness steady growth during FY 2025-26, supported by increasing investments in infrastructure development, energy transportation, industrial manufacturing, urban utilities, and water management projects across both developed and emerging economies. Steel pipes and tubes remain critical components for oil & gas transportation, construction, power generation, automotive manufacturing, engineering applications, and municipal infrastructure.

According to Grand View Research, the global steel pipes and tubes market was valued at approximately USD 137.6 billion in 2025 and is projected to reach USD 209.9 billion by 2033, growing at a CAGR of 6.0% during the forecast period. Asia Pacific accounted for more than 60% of the global market, driven by rapid urbanization, infrastructure expansion, industrialization, and growing investments in energy and utility networks across China, India, and Southeast Asia. The oil and gas sector remained the largest end-use segment, accounting for over 50% of market demand, while seamless pipes continued to dominate the product mix with a market share exceeding 66%.

The industry also benefited from rising investments in natural gas pipelines, LNG infrastructure, renewable energy projects, power generation facilities, water supply systems, and industrial corridors. Technological advancements in high strength steel grades, corrosion-resistant coatings, precision manufacturing, and sustainable production processes have further enhanced product performance and application scope. Additionally, growing emphasis on energy security, hydrogen transportation networks, carbon capture infrastructure, and modernization of ageing utility assets is creating new growth opportunities for steel tube manufacturers globally.

Despite positive demand fundamentals, the industry continues to face challenges arising from global overcapacity, trade protection measures, raw material price volatility, geopolitical uncertainties, and increasing environmental compliance requirements. Nevertheless, long-term demand prospects remain favourable, supported by continued infrastructure investment, industrial growth, urbanization, and the global energy transition.

Latest Sources-

1. Grand View Research Steel Pipes & Tubes Market Report 2026-2033:

Global market size (2025): USD 137.62 Billion

Forecast market size (2033): USD 209.89 Billion

CAGR: 6.0% (2026-2033)

Asia-Pacific market share: >60%

Oil & Gas application share: >50%

Seamless pipes share: >66%

Indian Economic Review

The Indian economy continued to demonstrate remarkable resilience amidst a challenging global environment characterized by geopolitical tensions, trade disruptions, and financial market volatility. Supported by strong domestic demand, sustained government capital expenditure, robust services sector performance, and macroeconomic stability, India remains one of the fastest-growing major economies in the world. For FY 2026-27, GDP growth is projected at 6.8%, with agriculture, industry, and services sectors expected to grow by 3.7%, 6.6%, and 7.4%, respectively. Inflation is anticipated to remain well contained at around 4.1%, within the Reserve Bank of India s comfort range, supported by prudent monetary policy and effective supply-side management. Continued strength in services exports, healthy foreign exchange reserves, and a stable financial system have further enhanced India s resilience against external shocks while supporting sustained economic expansion.

India continued to reinforce its position as the world s fastest-growing major economy, with real GDP growth estimated between 7.4% and 7.8% in FY 2025-26, supported by Gross Value Added (GVA) growth of 7.3%. Economic activity remained driven by resilient domestic consumption, sustained investments and the continued strength of the services sector. Looking ahead, India s real GDP growth, as at the date of this report, is projected to remain robust at 6.8%-7.2% in FY 2026-27, underpinned by favorable demographics, expanding economic activity and ongoing structural reforms. Growth was supported by the twin engines of consumption and investment. Private consumption increased to approximately 61.5% of GDP, its highest level in over a decade, aided by a benign inflation environment and improved household purchasing power. Private Final Consumption Expenditure (PFCE) expanded by 7.5% during the first half of FY 2025-26, while public capital expenditure remained a key growth driver at 3.4% of GDP. The Union Budget 2026-27 further strengthened the investment cycle with public capital expenditure of 12.2 Lakh Crores. Strong

Gross Fixed Capital Formation (GFCF) and approximately USD 50 Billion in greenfield investments during the first three quarters of CY 2025 reflected continued confidence in India s long-term growth prospects. The Government continued to balance fiscal discipline with growth-oriented policy measures, targeting a fiscal deficit of 4.3% of GDP in FY 2026-27. Manufacturing-focused initiatives, including the Production Linked Incentive (PLI) schemes, continued to strengthen domestic industrial capabilities and support investment-led growth.

India s outlook remains supported by strong domestic demand, infrastructure development and manufacturing expansion, although geopolitical tensions, energy price volatility and evolving global trade dynamics may create near-term uncertainties. Nevertheless, the country s structural strengths and policy driven growth agenda are expected to sustain its position as a key global economic and manufacturing hub.

India s economic outlook for FY 2026-27 remains positive, underpinned by strong domestic consumption, ongoing infrastructure development, increasing manufacturing competitiveness, and continued momentum in the services sector. The Government s focus on capital expenditure, fiscal discipline, ease of doing business, and structural reforms is expected to further strengthen growth prospects. While external risks such as geopolitical uncertainties, global trade protectionism, commodity price fluctuations, climate-related disruptions, and volatile capital flows may pose challenges, India s strong macroeconomic fundamentals, expanding digital economy, and growing investment ecosystem position it favourably for sustained long-term growth. Continued policy stability, technological advancement, and enhanced private sector participation are expected to support economic resilience and reinforce India s growth trajectory in the years ahead.

Source: Economic Outlook Survey by FICCI, Feb 2026

Government Initiatives

The Government of India continued to implement several policy measures and strategic initiatives during FY 2025-26 to support infrastructure development, manufacturing growth, sustainability, and the long-term competitiveness of the steel sector:

1. Infrastructure Investment: The Union Budget 2025-26 allocated capital expenditure of 11.21 lakh crore towards infrastructure development, with significant investments in highways, railways, ports, airports, urban infrastructure, defence, and logistics networks. This sustained focus on infrastructure creation is expected to remain a key driver of steel consumption in the country. Source: Union Budget 2025-26.

2. PM Awas Yojana: The Government continued implementation of PMAY Urban 2.0 and PMAY Gramin programmes to promote affordable housing. PMAY-U 2.0 aims to provide assistance to one crore urban families over five years, creating significant demand for pipes and allied construction materials in the residential sector.

3. National Infrastructure Pipeline (NIP) and PM Gati Shakti : The

Government s continued emphasis on multimodal connectivity under the PM Gati Shakti National Master Plan and ongoing infrastructure projects under the National Infrastructure Pipeline is expected to support long-term demand for steel across transportation, logistics, industrial corridors, and urban development projects.

4. National Green Hydrogen Mission (NGHM) and Green Steel

Transition : Under the National Green Hydrogen Mission, with an overall outlay of 19,744 crore, the Ministry of Steel has been allocated 455 crore for pilot projects aimed at promoting hydrogen based steelmaking technologies and reducing carbon emissions. The Ministry has already awarded seven pilot projects for hydrogen utilisation in iron and steel production, supporting India s transition towards green steel manufacturing.

5. Logistics and Supply Chain Efficiency : Through PM Gati Shakti and other logistics reforms, the Government continues to focus on improving freight efficiency, multimodal transportation, and supply chain integration. These measures are expected to reduce logistics costs, improve competitiveness, and enhance operational efficiency for steel manufacturers.

Indian Steel Tubes & Pipes Industry

India s steel tubes and pipes industry continued its strong growth trajectory during FY 2025-26, supported by robust infrastructure development, expanding oil and gas pipeline networks, urbanization, industrial growth, and increased investments in water supply and sanitation projects. As the world s second-largest steel producer and one of the fastest-growing major economies, India offers a favourable environment for the steel tubes and pipes sector, which serves as a critical link to industries such as oil & gas, construction, power, irrigation, transportation, renewable energy, and manufacturing.

According to industry estimates, the Indian steel pipes and tubes market was valued at approximately USD 31.6 billion in 2025 and is expected to reach around USD 47.8 billion by 2030, growing at a CAGR of approximately 8.6%. Demand growth continues to be driven by the Government s focus on infrastructure creation under programmes such as PM Gati Shakti, National Infrastructure Pipeline (NIP), Jal Jeevan Mission, Smart Cities Mission, Bharatmala, railway modernization, and expansion of city gas distribution networks. In addition, increasing investments in oil & gas transmission pipelines, water transportation systems, renewable energy projects, and industrial manufacturing are creating substantial opportunities for the sector.

PVC pipes & fittings are essential for water supply systems in both agricultural and non-agricultural sectors, extensively used for farm irrigation, water mains, distribution pipes, and household connections. In 2022, the global PVC pipes market reached $25.84 billion and is projected to grow at a CAGR of 5.9%, reaching $ 42.69 billion by 2031.

In India, the PVC pipes & fittings market was valued at $ 5.42 billion in 2023 and is expected to grow at a CAGR of 5.81%, reaching $ 8.05 billion by 2030. This reflects substantial growth in demand across various industries and applications.

PVC remains the largest product category within the PVC/CPVC fittings market, while CPVC is among the faster-growing segments. One industry estimate puts Indias PVC/CPVC fittings market at about US$898.8 million in 2024, with a projected CAGR of 6.4% through 2033.

Currently PVC resin prices have settled at quite a low level. De-stocking has to reverse to normal stocking by the entire chain. The overall demand forecast for Agriculture and Housing is encouraging. The Central Government has announced threefold increase in capital provision in the budget for the year 2025-26 compared to monies spent in the year 2024-25 year for augmenting drinking water supply.

Several government initiatives both in agricultural sector and in infrastructure have driven up demand in PVC pipes & fittings. Similarly, rapid urbanization is likely to boost the demand for PVC pipes & fittings in urban construction projects, thereby benefiting the industry.

Polyvinyl Chloride (PVC) Pipes and Fittings Overview

PVC pipes and fittings have become an essential component of Indias infrastructure ecosystem, supporting applications ranging from irrigation and water supply to residential, commercial, and industrial construction. According to an IMARC report, Indias PVC market stood at 3.086 million tons in 2025 and is expected to grow to 5.626 million tons by 2034, expanding at a CAGR of 6.91%6 during 2026-2034.

Demand is primarily driven by irrigation systems, water supply networks, sanitation projects, and residential construction activity. The market split by application in 2025 includes Irrigation Segment at 34.6%, Water Supply at 26.8%, Sewerage at 14.2%, Plumbing at 11.5%, HVAC at 7.1% and Oil & Gas at 5.8%. In terms of product mix, Unplasticized Polyvinyl Chloride (UPVC) pipes account for largest market share in 2025, supported by their extensive use in irrigation and bulk water conveyance due to their cost efficiency and durability. This is followed by CPVC pipes which represent the fastest-growing category, driven by adoption in modern residential plumbing and premium housing applications. Plasticized PVC pipes account for remaining market and are widely used in flexible, low-pressure applications.

Source: https://www.imarcgroup.com/agriculture-industry-in-india

Source: https://www.imarcgroup.com/india-pvc-pipes-market

Our Business

Malpani Pipes & Fittings Limited, an ISO 9001:2015 certified company based in Ratlam, Madhya Pradesh, manufactures a range of high-grade plastic pipes. Our products include High-Density Polyethylene (HDPE) Pipes, Medium-Density Polyethylene (MDPE) Pipes, and Linear Low-Density Polyethylene (LLDPE) Pipes, all marketed under the brand name volstar . The company is also engaged in the trading of granules and PVC pipes, as well as the sale of services.

We have manufacturing plant located in central India i.e. Ratlam, Madhya Pradesh. Our plant is well equipped with essential machinery, infrastructure, and an in-house testing facility, which ensures that our product conforms to the requisite standards.

We have a dedicated in-house testing facility to ensure our products adhere to stringent quality standards. Additionally, in case of supply to any government project or under some welfare policy to farmers, we are required to get our products tested from third part laboratories. These agencies include the Central Institute of Petrochemicals Engineering & Technology (CIPET), SGS, Bureau Veritas, Dr. Amin Controllers Pvt. Ltd., Rail India Technical and Economic Service, and Certification Engineers International Limited (CEIL). This verification process is a mandatory requirement set by the government.

We distribute our products to both wholesalers and retailers. Additionally, we supply pipes for government projects through authorised contractors involved in local, state or federal development scheme. Also, we supply pipes to farmers in terms of farmer welfare policies launched by Central or State Government.

Our pipes are engineered to meet a wide range of applications, including irrigation, potable water supply, sewerage, and drainage systems. They are also well-suited for boreholes and tube wells for underground water extraction. Furthermore, our pipes support infrastructure projects such as the installation of long-distance electrical cables and optical fibers.

We are constantly improving and expanding our processes and technologies. Our top management always emphasises core strength and policies that focus on technology and excellent service delivery. With a passion for setting high standards of service, the management always takes measures to scale up as needed to deliver the best. We work diligently and have a wide range of equipment to meet every need and ensure client satisfaction.

Our Company has marketing presence in the states of Madhya Pradesh, Maharashtra, Uttar Pradesh, Gujarat, Andhra Pradesh and Rajasthan. We distribute our products from our manufacturing unit located at Ratlam, Madhya Pradesh and also from our warehouse located at Bhiwandi and Amravati in Maharashtra.

Segment-wise or Product-wise performance

The Company operates in single segment i.e. Manufacturing of Pipes .

Hence, does not have any additional disclosure to be made under AS-17 segment reporting.

Business Strategy

Expansion of manufacturing facility in Ratlam, Madhya Pradesh - We are preparing to expand our manufacturing operations at our Ratlam facility by adding two HDPE machines, which will increase our installed capacity by approximately 3400 Metric Tons Per Annum (M.T.P.A.) and one PVC machine with our installed capacity of about 1700 M.T.P.A.

This enhancement is a strategic move to bolster our production and meet the demand for high-quality, durable pipes. By increasing our output, we aim to effectively cater to the important sectors like agriculture, construction, and infrastructure. This move will not only improve our market position but also show our commitment to providing reliable and efficient piping solutions on a larger scale.

Strategically Expansion - We are strategically enhancing our production capabilities by adding a total installed capacity of about 1700 M.T.P.A for PVC pipes. By incorporating PVC pipes into our product range, we aim to diversify our portfolio and better address the evolving needs of the market. This initiative not only aligns with our commitment to innovation and growth but also positions us to capture new opportunities in the construction and infrastructure sectors. The new capacity will enable us to deliver high-quality, durable piping solutions to our customers, thereby reinforcing our competitive edge and driving long-term business success.

Expand the Volstar brand to new geographies - We plan to increase sales of our Malpani Pipes products by increasing the number of wholesalers & retailers who stock our products. We plan to expand the sale of our piping products into cities where our products are not currently sold as well as consolidating our position in areas where we already have a strong presence. Our strategy is to focus on increasing the width and depth of our distribution network by increasing the number of wholesalers & retailers.

Strengthening Brand Volstar - Over the years, we have strong, lasting relationships with our customers, leading to consistent business. Many of our clients have worked with us for several years, which reflects our dedication to delivering high-quality products. Our high customer retention rates show that we consistently meet and exceed client expectations. Moving forward, we plan to strengthen these existing relationships and attract new, esteemed customers. We are dedicated to understanding our clients specific business needs and delivering tailored solutions that meet their exacting standards.

Furthermore, our strong client relationships have significantly contributed to establishing Volstar as a respected brand within the polymer-based pipes industry. To build on this success, we will invest in enhancing our brand image through targeted marketing and promotional efforts. This commitment to brand development will help us to improve our market presence, increased sales, and enhance profitability.

Opportunities and Threats

Our company offers a diverse product range to meet the growing needs of our customers. Our product lineup includes HDPE pipes, MDPE pipes, LLDPE pipes, HDPE Sprinkler Systems and drip irrigation solutions. These products serve various sectors such as Irrigation, Telecommunications, Industrial Applications, Infrastructure, and Housing. We aim to provide our existing customers with a comprehensive source for their product needs, fostering opportunities for business expansion and attracting new clients. Additionally, our flexible manufacturing infrastructure allows us to adapt our product mix in response to market demand changes.

Risks and Concerns Key Risks:

1. Raw Material Price Volatility: The Company is exposed to significant volatility in the prices of key raw materials, particularly HDPE, MDPE and LLDPE polymers, which are petrochemical-derived products. Polymer prices are influenced by crude-oil prices, global demand-supply conditions, production capacity, freight costs and exchange-rate movements. Any sharp increase in polymer prices can adversely affect the companys operating margins, particularly where the company is unable to immediately pass on the increase to customers. Rating agencies have also identified polymer/raw-material price volatility as a key risk for plastic-pipe manufacturers.

2. Import Dependence and Global Exposure: Reliance on imported PVC resin exposes the industry to fluctuations in global trade dynamics, currency volatility and geopolitical risks. Changes in trade policies, shipping costs, or the imposition of antidumping duties can further disrupt supply availability and create instability in domestic pricing.

3. Intense Competition and Pricing Pressure: The plastic-pipe and irrigation-products industry is highly competitive, with the presence of established organised manufacturers as well as numerous regional and unorganised players. HDPE/MDPE/LLDPE pipes, sprinklers and irrigation components are, to a significant extent, price-sensitive products, and competition may result in pressure on selling prices, dealer margins and credit terms. Accordingly, the company may face challenges in maintaining margins during periods of weak demand or aggressive pricing by competitors.

4. Foreign Exchange Risk: To the extent the company imports polymer, additives, machinery, components or other equipment, it may be exposed to fluctuations in foreign-exchange rates. Depreciation of the Indian rupee can increase the landed cost of imported inputs and adversely affect margins if the additional cost cannot be passed on to customers. CRISIL has also identified foreign-exchange exposure as a relevant consideration for companies with imported raw-material requirements.

5. Intense Competition and Unorganised Market: The presence of a large unorganised segment, particularly in rural and semi-urban markets, intensifies pricing pressure on organised players. Low-cost, unbranded products further compress realisations and constrain branded manufacturers ability to expand market share.

6. Regulatory and Environmental Compliance: Increasing regulatory focus on product quality, safety standards (including BIS compliance) and environmental sustainability is raising compliance requirements. Additionally, evolving norms in plastic waste management may increase operational costs, especially for smaller manufacturers.

7. Cyclicality in End-Use Industries: Demand for PVC pipes is closely linked to agriculture, real estate, and infrastructure development. Any slowdown in housing activity or delays in government-led projects such as water supply and sanitation schemes can temporarily affect demand growth. The industry is expected to maintain steady structural expansion over the medium- to long-term, supported by sustained demand across the agriculture, housing, and urban infrastructure segments. Between 2026 and 2034, CPVC pipes are projected to grow the fastest followed by plumbing and HVAC supported by rising demand from premium residential projects and expanding urban infrastructure. UPVC pipes will continue to dominate overall volumes due to their strong presence in irrigation and water distribution networks. Regionally, growth is expected to remain broad based, with East and Northeast India emerging as the fastest-expanding region from a smaller base, supported by improving infrastructure penetration and rising coverage of water supply schemes. North India is expected to retain its position as the largest demand centre. Structurally, the industry is moving towards greater formalisation, with organised players steadily gaining share through stronger branding, wider distribution, and increasing preference for certified products. This is gradually reducing dependence on unorganized suppliers and improving overall industry quality standards.

Financial Highlights

Particulars	F.Y. 2025-26	F.Y. 2024-25
Revenue from Operations	16,303.32	14,096.73
Other Income	81.74	78.20
Total Income	16,385.06	14,174.93
Less: Total Expenses before Depreciation, Finance Cost and Tax	14,653.57	12,639.06
Profit before Depreciation, Finance Cost and Tax	1731.50	1,535.87
Less: Depreciation	163.13	131.99
Less: Finance Cost	351.76	315.68
Profit Before Tax	1,216.61	1,088.20
Less: Current Tax	289.55	272.07
Less: Short provision for earlier year	3.53	(0.74)
Less: Deferred tax Liability (Asset)	20.61	9.92
Profit after Tax	902.91	806.95

FINANCIAL PERFORMANCE

During the year under review, the Company has earned total income of 16,385.06 Lakhs as against the total income of 14,174.93 Lakhs of previous year which states 15.59% increase in the total income as compared to previous year. The profit before tax in the financial year 2025-26 stood at 1,216.61 Lakhs as compared to profit of 1,088.20 Lakhs for last year which state 11.80% increase in Profit before tax and net profit after tax stood at 902.91 Lakhs as compared to profit of 806.95 Lakhs for the previous year which state 11.89% increase in profit of the Company.

INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY

Internal Control system and adequacy Internal Control measures and systems are established to ensure the correctness of the transactions and safe guarding of the assets. Thus, internal control is an integral component of risk management. The Internal control checks and internal audit programmes adopted by the Company plays an important role in the risk management feedback loop, in which the information generated in the internal control process is reported back to the Board and Management. The internal control systems are modified continuously to meet the dynamic change. Further the Audit Committee of the Board of Directors reviews the internal audit reports and the adequacy and effectiveness of internal controls.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

The Company believes in establishing and building a strong performance and competency driven culture amongst its employees with greater sense of accountability and responsibility. The Company has taken various steps for strengthening organizational competency through the involvement and development of employees as well as installing effective systems for improving their productivity and accountability at functional levels. The Company acknowledges that its principal asset is its employees. Ongoing in-house and external training is provided to the employees at all levels to update their knowledge and upgrade their skills and abilities. As on March 31, 2026, the Company had total 87 full time employees. The industrial relations have remained harmonious throughout the year.

CAUTIONARY NOTE

Statements in this Report, describing the Companys objectives, projections, estimates and expectations may constitute forward looking statements within the meaning of applicable laws and regulations. Forward looking statements are based on certain assumptions and expectations of future events. These statements are subject to certain risks and uncertainties. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. The actual results may be different from those expressed or implied since the Companys operations are affected by many external and internal factors, which are beyond the control of the management. Hence the Company assumes no responsibility in respect of forward-looking statements that may be amended or modified in future on the basis of subsequent developments, information or events.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS

Particulars	F.Y. 2025-26	F.Y. 2024-25	Variance	Reason
Debtors Turnover	3.42	4.58	(25.36%)	Due to increase in average trade receivable by almost 53 % where as revenue is increased by roughly 14% resulting in overall reduction of ratio.
Inventory Turnover	3.40	3.75	(9.35%)	NA
Interest Coverage Ratio	5.16	4.82	7.05%	NA
Current Ratio	1.77	1.67	5.65%	NA
Debt Equity Ratio	0.40	0.64	(37.61%)	Due to repayment of debt during the year and corresponding increase in net worth on account of increased profit growth to the tune of approx 12%
Operating Profit Margin (%)	9.62	9.96	(3.41%)	NA
Net Profit Margin (%)	5.54%	5.72	(3.25)	NA
Return on Net Worth	16.22	17.30	(6.27%)	NA