Mangalam Worldwide Ltd Management Discussions

In terms of the Regulation 34(2)(e) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Management of Mangalam Worldwide Limited (MWL) presents its Analysis Report covering the performance and outlook of the Company.

OVERVIEW:

The objective of this report is to convey the Managements perspective on the external environment and steel industry, as well as strategy, operating and financial performance, material developments in human resources and industrial relations, risks and opportunities and internal control systems and their adequacy in the Company during the FY 2025-26. This should be read in conjunction with the Companys financial statements, the schedules and notes thereto and other information included elsewhere in this 30th Annual Accounts of the Company for FY 2025-26. The Companys financial statements have been prepared in accordance with Indian Accounting Standards (‘Ind AS) complying with the requirements of the Companies Act, 2013, as amended and regulations issued by the Securities and Exchange Board of India (‘SEBI) from time to time.

EXTERNAL ENVIRONMENT

GLOBAL ECONOMIC AND INDUSTRY OVERVIEW

The year unfolded against a global steel landscape that remained, on balance, subdued. World steel demand grew only modestly through the year, weighed down by a prolonged contraction in Chinas construction-linked consumption and tepid activity across several advanced economies, even as financing conditions gradually eased. Against this uneven backdrop, India stood out as one of the few large economies where steel and stainless steel in particular continued to register healthy, broad-based growth, a divergence that speaks as much to Indias own infrastructure and manufacturing momentum as it does to softness elsewhere. For an export-oriented Indian producer such as ours, this global mix has been a double-edged opportunity: softer international prices tested margins through parts of the year, even as Indias comparative cost competitiveness and reliability opened doors with customers seeking to diversify away from more volatile sourcing geographies.

The global industrial landscape remained resilient during FY2025-26 despite geopolitical uncertainties, evolving trade dynamics and inflationary pressures. Continued investments in infrastructure, manufacturing, transportation and energy transition projects supported demand across industrial sectors and materials.

The stainless-steel industry demonstrated positive momentum during the year, reflecting improving manufacturing activity and sustained demand from infrastructure, engineering and industrial applications. According to the World Stainless Association, global stainless steel melt shop production increased by 2.5% year-on-year in Q1 2026, signalling strengthening industry fundamentals and continued demand across key end-use sectors.

Growth in stainless steel consumption continued to be supported by increasing investments in construction, transportation, renewable energy, water infrastructure, food processing and process industries. The materials durability, corrosion resistance, recyclability and long lifecycle continue to make it a preferred choice across industrial and infrastructure applications.

The industry also benefited from increasing focus on sustainable development, energy efficiency and modern infrastructure creation. Investments in renewable energy, urban infrastructure, transportation networks and advanced manufacturing are expected to support long-term demand for stainless steel products globally.

Global economic growth is projected to moderate to 3.1% in 2026, with a slight recovery to 3.2% in 2027. Advanced economies are expected to grow at 1.8%, while emerging and developing economies may expand by 3.9%. Inflation is likely to increase to 4.4% in 2026 before easing to 3.7% in 2027, mainly due to higher energy and food prices.

Global crude steel production stood at 1.8 billion tonnes in 2025, declining by 2.0% year-on-year. While production fell in major regions like China (down 4.4%) and the EU (down 2.6%), India recorded strong growth of 10.4%, partially offsetting the global decline.

(Source: www.imf.org)

MACROECONOMIC HIGHLIGHTS

• Global Stainless Steel Melt Shop Production Growth (Q1 2026): 2.5% YoY

• Continued investments in infrastructure and industrial development

• Growing adoption across transportation and construction sectors

• Rising investments in renewable energy and water infrastructure

• Increasing focus on sustainable and recyclable materials

• Manufacturing expansion supporting industrial demand

IMPLICATIONS FOR THE STAINLESS-STEEL INDUSTRY

3 Infrastructure development continues to support stainless steel demand.

3 Manufacturing expansion is driving growth across engineering and industrial applications.

3 Renewable energy and water infrastructure are emerging growth segments.

3 Sustainability and recyclability trends continue to strengthen stainless steel adoption.

3 Industrial investments and urban development support long-term demand fundamentals.

INTERNAL ENVIRONMENT

1. Indian Economy

India remained one of the fastest-growing major economies, recording a growth rate of 7.5% in FY2025–26, with GDP expected to grow at 6.7% in FY2026–27. Inflation is projected to rise to 4%, aligning with RBIs target, while the repo rate is likely to remain stable at around 5.0% to support growth.

Strong public capital expenditure, exceeding 5% of GDP, continues to drive infrastructure and defense projects, supporting sectors like steel. However, risks persist due to global factors such as potential disruptions at the Strait of Hormuz, which may lead to higher energy costs, increased inflation, and pressure on Indias fiscal and current account balance.

(Source: Deloitte Global Economics Research Center)

2. Indian Steel Industry Review

India is expected to remain a global leader in steel demand growth, with consumption projected to grow by 7–8% in FY 2026–27, reaching around 176–178 Million Tones. This growth is driven by strong infrastructure investment, rapid urbanisation, and expanding manufacturing activity, along with emerging sectors like data centres, defence, and renewable energy.

While domestic production is likely to outpace demand, positioning India as a potential net exporter, the industry faces global challenges such as excess Chinese exports, trade protection measures, and evolving carbon regulations impacting export competitiveness.

To sustain growth and competitiveness, the industry will require continued policy support, cost-efficient access to resources, and increased adoption of cleaner technologies, along with a focus on productivity, innovation, and value-added products.

INDIA STEEL PIPES AND STEEL TUBES MARKET – INDUSTRY TRENDS AND OUTLOOK

Indias stainless-steel industry continued its strong growth trajectory during FY2025-26, supported by robust infrastructure development, expanding manufacturing activity and increasing adoption across transportation, construction and process industries. Demand remained resilient across railways, metros, airports, water infrastructure and industrial applications, reflecting the countrys growing focus on urbanisation, industrialisation and sustainable development.

The Steel Pipes and Steel Tubes Market in India comprises the manufacturing, distribution, and trade of a wide range of steel pipe and tube products. These products are essential across key sectors such as construction, oil & gas, water infrastructure, transportation, and industrial applications. The market includes diverse product categories such as seamless, Electric Resistance Welded (ERW), and Submerged Arc Welded (SAW) pipes, catering to both structural and fluid transportation requirements. Demand remained resilient across railways, metros, airports, water infrastructure and industrial applications, reflecting the countrys growing focus on urbanisation, industrialisation and sustainable development.

The Indian steel pipes and tubes industry continues to play a critical role in supporting infrastructure development and industrial growth. Market performance is closely linked to macroeconomic factors such as GDP growth, government infrastructure spending, expansion in energy demand, and growth in manufacturing activities.

As per recent industry estimates, the India Steel Pipes and Steel Tubes Market was valued at approximately USD 33–35 billion in 2026, and is projected to reach around USD 40–42 billion by 2030, growing at a CAGR of ~6–7% during the forecast period. This growth is driven by sustained demand from oil & gas exploration, expansion of water supply and sanitation projects, increased urban infrastructure development, and rising investments in transportation and renewable energy sectors.

The Market Size is estimated at around 7.2- 7.4 million tonnes in 2026 and is expected to reach approximately 8.0- 8.5 million tonnes by 2030 supported by steady infrastructure and industrial demand. The pipes and tubes segment contributes about 7- 8% of Indias total steel consumption, reflecting its strategic importance within the broader steel ecoysystem.

According to the Indian Stainless Steel Development Association (ISSDA), domestic stainless-steel consumption reached 4.8 million tonnes in FY2024-25, registering approximately 8% year-on-year growth. Over the last five years, domestic consumption has expanded by 84%, highlighting the increasing penetration of stainless steel across infrastructure, engineering and industrial applications.

India continues to strengthen its position as a leading stainless-steel market globally, supported by rising infrastructure investments, manufacturing-led growth and increasing demand for durable, recyclable and corrosion-resistant materials. The industry is also witnessing growing opportunities from emerging sectors such as renewable energy, green hydrogen, biofuels, smart cities and advanced water infrastructure.

Looking ahead, domestic stainless-steel demand is expected to grow at 7–8% annually over the next two to three years, supported by sustained government capital expenditure, industrial expansion and rising per capita consumption. Industry estimates indicate that domestic stainless-steel demand could reach 6.8 million tonnes by FY2030, underlining the sectors strong long-term growth potential.

Overall, the outlook for the Indian steel pipes and tubes market remains positive in the medium to long term. Growth will be supported by government initiatives such as infrastructure expansion, "Make in India", energy transition projects, and increasing investments in oil & gas pipelines and water management systems. However, the industry may face near-term challenges from volatile raw material prices, global trade dynamics, and competitive import pressures.

INDUSTRY OUTLOOK

The Indian stainless-steel industry remains well-positioned for sustained growth, supported by favorable macroeconomic fundamentals, increasing infrastructure investments, manufacturing expansion and growing adoption across industrial and consumer applications. Rising focus on sustainability, resource efficiency and long-life materials is expected to further strengthen stainless steel demand across key sectors.

INDUSTRY HIGHLIGHTS

• Domestic Stainless-Steel Consumption: 4.8 Million Tonnes

• Year-on-Year Consumption Growth: ~8%

• Growth in Consumption Over the Last Five Years: 84%

• Per Capita Stainless-Steel Consumption: 3.4 kg

• Expected Demand Growth: 7–8% Annually

• Potential Domestic Demand by FY2030: 6.8 Million Tonnes

KEY DEMAND DRIVERS

• Infrastructure & Urban Development

• Railways, Metros & Transportation

• Building & Construction

• Process Industries & Engineering

• Water Infrastructure Projects

• Renewable Energy, Biofuels & Green Hydrogen

Source Links:

• https://vinlonginox.vn/en/global-stainless-steel-production-rises-2-5-in-q1-2026-a-positive-signal-for-the-stainless-steel-industry.html?u • https://www.business-standard.com/industry/news/domestic-stainless-steel-use-grows-84-in-5-yrs-to-4-8-mt-in-fy25-issda-

GOVERNMENT INITIATIVES IN STEEL SECTOR:

The Government of India continues to support Make in India and Atmanirbhar Bharat through policy measures that strengthen domestic manufacturing and drive steel consumption. Infrastructure development remains a key priority, with capital expenditure of approximately J15.5 lakh crore focused on roads, railways, ports and urban infrastructure, thereby sustaining demand for steel. Increased allocation to housing schemes such as Pradhan Mantri Awas Yojana further supports residential construction and steel usage.

Steel demand in India remains robust, with industry estimates projecting growth of around 8%, equivalent to an incremental demand of 11–12 million tonnes annually. Consumption has already grown by approximately 7% up to December 2025, indicating strong momentum. The Production Linked Incentive (PLI) Scheme for Specialty Steel continues to boost domestic value-added steel production and reduce import dependence.

Additionally, preference for domestically manufactured steel in public procurement ensures stable demand for local producers. The sectors long-term growth is guided by the National Steel Policy 2017, while calibrated trade measures, including higher import duties and anti-dumping safeguards, support the domestic industry.

Key Government Initiatives Impacting the Steel Sector

1. Flagging of Merchant Ships in India Scheme

The Government of India, in line with the vision of Atmanirbhar Bharat, has approved a scheme with an outlay of J1,624 crore over five years to provide subsidy support to Indian shipping companies participating in global tenders for transportation of Government cargo. CPSEs under the Ministry of Steel are beneficiaries of this scheme. During the current financial year (up to January 2026), subsidy claims amounting to J5.90 crore have been disbursed to steel CPSEs.

2. Taxonomy of Green Steel

The Ministry of Steel introduced the Green Steel Taxonomy on December 12, 2024, as a significant step towards decarbonisation of the steel sector. The framework defines standards for green steel production and promotes adoption of low-carbon technologies. As of December 31, 2025, 58 steel units have been certified under this taxonomy with a cumulative green steel production of 9.1 million tonnes, strengthening Indias transition towards sustainable steel manufacturing.

3. PM GatiShakti National Master Plan

Under the PM GatiShakti initiative, the Ministry of Steel has integrated geospatial data of steel plants into the National Master Plan portal with support from BiSAG-N. Geo-locations of existing steel units have been uploaded, and mapping of slurry pipelines and upcoming projects is in progress. CPSEs are actively utilizing the platform for infrastructure planning, supported by training programs and development of sector-specific tools to enhance logistics efficiency and coordination.

4. Steel Scrap Recycling Policy, 2019

The Steel Scrap Recycling Policy aims to promote scientific processing and recycling of ferrous scrap. MMRPL, a joint venture between MSTC and Mahindra Accelo (Cero), has established six operational Registered Vehicle Scrapping Facilities (RVSFs) across India. As of December 31, 2025, 42,424 vehicles have been recycled, generating approximately 26,072 tonnes of scrap and contributing to significant savings in iron ore, coal, and limestone.

5. Safety Guidelines for the Iron & Steel Sector

To enhance workplace safety, the Ministry of Steel has issued comprehensive safety guidelines covering industry-specific hazards. A total of 25 general safety guidelines and 16 process-based guidelines have been developed and published. These are currently under consideration for mandatory adoption under the Occupational Safety, Health and Working Conditions Code, 2020. Steel CPSEs have been directed to ensure 100% annual safety training coverage for employees and contractual workers to strengthen safety culture and compliance.

(Source: Annual Report of Ministry of Steel)

BUSINESS OVERVIEW:

MANUFACTURING FACILITIES OF THE COMPANY:

• Manufacturing of SS Billets & SS Ingots:

Unit-I - Halol is having installed manufacturing capacity of total 66000 MT per annum used for manufacturing of Stainless Steel (SS) Billets and SS Ingots of 200 series, 300 series, 400 series, Special steels like 17/4 PH, Duplex and Super duplex Steel. The SS billets and SS ingots are sold under the brand name ‘Mangalam Saarloh.

• Manufacturing of SS Flat/Round Bars:

Unit-II - Changodar is having installed rolling capacity of 90,000 MT per annum used for manufacturing of Stainless Steel (SS) Flat Bars and Round Bars, SS RCS (Round Corner Square) Bars used in Unit -II – Changodar.

The SS flat bars and SS round bars are sold under the brand name ‘Mangalam Saarloh.

• Manufacturing of Bright Bars and Seamless Pipes and Tubes:

Unit – III is a Bright Bar Unit having installed manufacturing capacity of 18000 MT per annum and Unit – IV is seamless Pipes and Tubes unit having manufacturing capacity of 16800 MT per annum capacity at Kapadvanj are equipped with state of the art machinery to manufacture high value added products such as Bright Bars, Seamless pipes & tubes. The black round bars manufactured at Unit-II, Changodar are sold directly and also captively used in Unit- III & Unit-IV for manufacturing Bright bars, Seamless pipes & tubes.

High-quality seamless pipes & tubes in Austenitic, Ferritic, Martensitic and super grades like Duplex and Super Duplex and ERW Pipes are sold under the brand name ‘Mangalam Tubicore.

Companys products are used across industries like food and dairy equipment, oil and gas, aerospace and medical devices among others. Finish products of Seamless Pipes & Tubes are used in Oil & Gas, Refinery & Petrochemicals, Dairy Processing Equipment, Power Plants, fertilizers Plants, pharmaceuticals, Automobiles Nuclear Sector, Breweries, Aerospace and Defense etc.

• Fully integrated Manufacturing facility from Scrap Melting to Seamless Pipes & Tubes:

The Company is using its own products i.e. round bar as raw material for manufacturing of Pipes and Tubes. The billets are casted in steel melting shop of the Company at Halol and thereafter rolled in its rolling mill at Changodar. The Company has piercing facility to manufacture ‘Mother Hollow at Kapadvanj Unit. The Company is using its own product i.e. round bars as raw material for manufacturing of Bright bars. Pipes and Tubes are manufactured from Bright bars.

Sr. No. Plant	Location
1. Unit - I - Halol (Steel Melting Shop)	Plot No. 2348 bearing Survey No. 219 paiki, Chandrapura Taluka, Halol, Dist: Panchmahal, Gujarat.
2. Unit - II - Changodar (Rolling Mill)	Sub Plot No. 3, "Panchratna Industrial Estate" Survey/ Block No. 375/P, Changodar, Tal: Sanand, Dist: Ahmedabad, Gujarat.
3. Unit - III - Kapadvanj (Bright Bars)	South Side Amalgamated Survey No. 1025/3, Modasa Road, Kapadvanj, Gujarat
Unit- IV- Kapadvanj (Seamless Pipes & Tubes)

FINANCIAL POSITION AND RESULTS OF OPERATIONS:

Our Company has robust growth and improvement in top line and bottom line on Standalone basis in the Current and previous financial years which is explained below: (Rs. in Lakhs)

PARTICULARS	STANDALONE - FINANCIAL STATEMENTS-YEAR ENDED		CONSOLIDATED - FINANCIAL STATEMENTS-YEAR ENDED
	31st March, 2026	31st March, 2025	31st March, 2026	31st March, 2025
Revenue From Operations	120798.06	106070.94	120798.06	106070.94
Other Income	700.49	523.25	700.76	532.43
Total Revenue	121498.55	106603.19	121498.82	106603.37
Earnings Before Interest, Depreciation and	9686.34	5910.90	9784.16	6005.49
Amortization Expense and Taxes
Less:- A) Finance Cost	3682.12	2378.60	3682.27	2378.86
Less:- B) Depreciation and Amortization Expense	930.23	776.10	1014.82	860.96
Profit / (Loss) before Exceptional Items/ Extra-Ordinary	5073.99	2756.20	5087.07	2765.67
Items and tax
Add/(Less): Exceptional Items/ Extra-Ordinary Items	-	185.50	-	185.50
Profit/(Loss) after Extra Ordinary Items and before tax	5073.99	2941.70	5087.07	2951.17
Less: Tax Expense:
A) Current Income Tax	2.50	1.08	2.50	1.08
B) Deferred Tax (Assets)/Liabilities	66.79	(0.86)	70.25	(2.46)
Profit / (Loss) After Tax	5004.70	2941.48	5014.32	2952.55

Note:

1. Previous year figures have been regrouped / re-arranged wherever necessary.

2. These audited standalone & Consolidated financial results for the year ended March 31, 2026 is the first annual Audited standalone & Consolidated financial results after adoption of Indian Accounting Standards ("Ind AS"), voluntarily.

Annual Report 2025-26 47

Consequently, the standalone & Consolidated financial results for all the periods presented have been prepared in accordance with the recognition and measurement principles as stated therein.

During the year under review, the revenue from operation was increased by 13.88%.

During the year under review, Total Revenue of your Company is increased to Rs. 121498.55 Lacs for the financial year 2025-26 from Rs. 106603.19 Lacs for the previous financial year 2024-25. Further, the Company has earned a standalone Profit Before Tax (PBT) of Rs. 5073.99 Lacs and consolidated Profit Before Tax (PBT) of Rs. 5087.07 Lacs during financial year 2025-26 as compared to standalone Profit Before Tax (PBT) of Rs. 2941.70 Lacs and consolidated Profit Before Tax (PBT) of Rs. 2951.17 Lacs, respectively, in the previous financial year 2024-25. The Company has earned Standalone Profit after Tax (PAT) of Rs. 5004.70 lacs and consolidated Profit After Tax (PAT) of Rs. 5014.32 lacs during the Financial year 2025-26 as compared to Standalone Profit After Tax (PAT) of Rs. 2941.48 lacs and consolidated Profit After Tax (PAT) of Rs. 2952.55 lacs during the previous year ended on 31st March, 2025.

The Company is engaged in steel manufacturing activities and it is operating in a single business / geographical segment.

NON CONVERTIBLE DEBENTURES (NCDS):

During the year, your Company has allotted 50,000 (Fifty Thousand) Secured, Rated, Listed, Redeemable, Non–Convertible Debentures of face value of J 10,000 each ("NCDs), aggregating to J 50 crore by way of Private Placement in the March 2026. Further, The Company has also allotted 5000 (Five Thousand) Secured, Rated, Listed, Redeemable, Non–Convertible Debentures of face value of J 10,000 each ("NCDs), aggregating to another J 50 crore by way of Private Placement in the April 2026.

The Company has allotted Non- Convertible debentures of total J 100 Crore in the month of March 2026 and April, 2026.

DIRECT LISTING OF EQUITY SHARES TO MAIN BOARD OF BSE:

The Company had applied for direct listing on main board of BSE Limited on 1st May, 2026 and the Company has received In-principal approval for main board listing w.e.f. 22nd May, 2026 and the Company has received listing and trading approval from BSE Limited effective from 27th May, 2026.

FACTORS AFFECTING FUTURE RESULTS OF OPERATIONS:

Our Companys future results of operations could be affected potentially by the following factors:

• Political Stability of the Country.

• World Economy stability.

• Competition from existing players;

• Disruption in supply of Raw Materials and Labour Supply at site.

• Occurrence of Environmental Problems & Uninsured Losses.

• Ability to expand the geographical area of operation.

• Government policy and regulations towards Steel Sector.

• Change in demand and supply of products.

• Transportation cost for procuring raw materials and supply of finish products.

SWOT ANALYSIS: Strength

• The management of the Company has successfully scaled up the business over past few years.

• Long-term trust-based relationships with customers for expansion.

• Measures for cost-effective production and timely order fulfillment.

• Adaptable to diverse industry segments and efficient procurement capabilities.

• Ability to use in-house manufactured stainless steel products for reduced costs.

• The Company is fully integrated stainless steel manufacturing company with in-house Melting plant, Rolling Mill, Bright Bar manufacturing and seamless & welded pipes manufacturing facility. With its end to end manufacturing prowess, the company provides complete range of products to its customers ranging from Billets, Ingots, Bright bars to Pipes & Tubes.

• Maintaining highest standard of governance helps us to boost the confidence of all the stakeholders.

Weakness

• The prices of the raw material are fluctuating in nature so the Company should keep an eye on the prices and pass on the price change to the customers.

• The Company may have to offer discounts and compete with existing players in the initial period of operations to scale up the volumes.

• All Units are significantly dependent on external power from grid as it doesnt have a captive power plant of its own.

Opportunity

• The automotive industry is forecasted to reach US$ 260-300 billion by 2026. The industry accounts for around 10 per cent of the demand for steel in India. With increasing capacity addition in the automotive industry, demand for SS is expected to be robust.

• Government infrastructure programs (water pipelines, rail, metro, green energy) and industrial policies (Make in India, defense manufacturing) are driving demand for high-grade stainless long products

• Rising automotive, aerospace and engineering activity bodes well for Mangalam Worldwides bright bars and specialty tubes

• The company can further capitalize on global trends – Western buyers are diversifying supply away from China, creating export opportunities in Europe, Middle East and North America

• Steel and steel products have its uses across multiple industries – shipbuilding, automotive, pharmaceutical, aviation, real estate, energy, home appliances, electronics etc.

• Technology has made buying and selling of steel and steel products easier today. Buyers can buy steel online through reliable steel marketplaces and online websites, in a secure, transparent, and quick manner.

• Various Government initiatives like Production Linked Incentive, National Steel Policy (NSP) 2017, etc. targeting development in steel sector pose a unique opportunity for the Company.

Threats

• Any change in Government Polices that may affect the industry performance

• Capital intensive industry with fluctuating raw material and finished goods prices. The input prices and the finished goods prices always move in tandem and thereby, any change in input costs would be transferred to finished products.

• Economic recession/downturn in the country as well as globally may affect the industry as a whole.

• Prospects of steel industry are strongly co-related to economic cycles. Demand for steel is sensitive to trends of particular industries, viz. automotive, construction, infrastructure, and consumer durables, which are the key consumers of steel products. These key user industries in turn depend on various macroeconomic factors, such as consumer confidence, employment rates, interest rates and inflation rates, etc. in the economies in which they sell their products.

• The steel Industry is likely to be subjected to stringent environmental regulations at any point of time.

• International Geopolitical imbalance also affect the Industry performance.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has robust internal control system and procedures compatible with size and operations. The company has well defined internal control system and policies. The Internal Audit of the Company is done by internal auditor who is professionally qualified accountants and internal control system is monitored by IT executives. Some elements of the Companys internal control system:

• Preparation and supervision of annual budgets for all operating and service functions

• Making Standard Operating Procedures and guidelines and ensure compliance with same.

• Scope of internal audit and the frequency of audit being decided every year to ensure sufficient coverage of different areas and functions over a reasonable period.

• The audit plan is discussed and approved in Audit Committee

• Internal Audit is conducted regularly during the year and Internal Audit Report is being submitted to audit committee for their review and also for future improvements in the system across the organization.

• The Company is also having well defined delegation of power with authority limits for approving revenue and capex expenditures including approval of non-routine and abnormal items.

• Also, External Auditor is also performing independent testing of Internal Finance Controls over financial reporting which is line with regulatory reporting requirements.

• Internal Auditor is also checking the Internal Financial Controls as part of their Audit scope

The Audit Committee of the Board of Directors comprises of maximum number of independent Directors, which quarterly reviews the audit plans, significant audit findings, adequacy of internal controls system, compliance with Accounting Standards etc.

ENVIRONMENT SAFETY, HEALTH AND ENERGY CONSERVATION:

The Company is steadfast in commitment to environmental stewardship and sustainability. Despite the challenges posed by external factors, we have remained resolute in our mission to minimize our environmental impact and contribute positively to the planet. The Company had successfully installed and commissioned 1200 KWp Rooftop Solar Power Plant at the Companys unit situated at Kapadwanj, District - Kheda, Gujarat to generate electricity for Captive Consumption, which shall significantly boost our renewable energy production and contributing to our sustainability goals. During the year, the Company has undertaken installation of two ground-mounted Solar Power Plants of 5,200 kWp DC each, aggregating to 10,400 kWp DC, at Village Handod, Taluka Karjan, District Vadodara, for captive consumption of power for the Companys Halol manufacturing unit.

The Company is committed to sustainable practices and reducing its environmental footprint through this project. There will be reduction in carbon emissions resulting into positive environmental impact and lower energy costs with increase in energy independence. It shall also have positive impact on the local community and the environment and also contribute to renewable energy targets of the country.

Ensuring the safety and health of employees at the workplace remains a paramount focus for the Company. The aim is to maintain the higher standards of safety across factories and workplaces; and ensure that latest best practices are implemented across the business to bring operational efficiencies and save energy.

We have implemented new labour code. The Company is complying provisions related to working hours and overtime rules, wage structure and salary components, Provident Fund provisions, Employee benefits and Leave Policies, Contract provisions and related compliance requirement applicable to the Company.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS:

The Company considers employees as its vital and most valuable assets. Your Company considers manpower as its assets and understands that people have been driving force for growth and expansion of the Company.

As of March 31, 2026, there are 509 permanent employees on the rolls, diligently working and dedicated to the companys goals. Through our Learning and Development initiatives, the Company continues to upskill and reskill our employees for their jobs. The Company is into process of continuous improvements based on feedback and inputs from multiple stakeholders, past experiences and industrys best practices (Recruitment and Selection, Leave & Attendance Management) for giving better employee experiences. The Company will continue to create opportunity and ensure recruitment of diverse candidates without compromising on meritocracy.

INVESTOR RELATIONS AND ENGAGEMENT:

Investor Relations (IR) is playing an increasingly important role in todays volatile world in enabling companies to manage investor expectations. The objectives of Companys investor relations activities are to boost confidence and develop a long-term relationship of trust with stakeholders including Shareholders, Investors & Analysts, through true and fair disclosure of information/explanation, and bilateral communication.

To pursue these objectives at all times, the Company continuously discloses necessary information and conducts various investor relations activities. Engaging closely with the investor community helps the Company to gain investor confidence, thereby enabling it to drive maximum value out of the IR programme. The Company publishes Investor presentation and the required disclosures are shared with the Stock exchange as well as hosted on the website of your Company for Investor Relations and Engagement.

STAKEHOLDER ENGAGEMENT:

The Companys endeavour is to maintain regular engagement with all its stakeholders to ensure that their concerns are addressed and expectations are met. Dynamic processes are in place within the Company to ensure integration of feedback from various stakeholders such as suppliers, customers, employees, and investors on a routine basis. By trusting employees, partnering with suppliers and dealers, and engaging with local communities, we work towards serving and delighting our customers.

KEY FINANCIAL RATIOS:

Sr. No. Ratio	Numerator	Denominator	As at 31st March, 2026	As at 31st March, 2025	% Change	Reason for variance
1 Current Ratio (In Times)	Current Assets	Current Liabilities	1.51	1.42	6.34%	-
2 Debt-Equity Ratio (In Times)	Debt Consists of Borrowings and Lease Liabilities	Shareholders Equity	0.81	0.77	5.19%	-
3 Debt Service Coverage Ratio (In Times)	Earning Available for Debt Service	Total Debt Service	2.45	2.58	(5.04%)	-
4 Return On Equity Ratio (In %)	Net Profit After Tax	Average Shareholders Equity	18.57	14.01	32.52%	Return on Equity Ratio is improvement is mainly on account of higher Profit After Tax during the year on the back of growth in revenue, better operating margins and improved cost efficiencies.
5 Inventory Turnover Ratio (In Times)	Cost of Goods Sold	Average Inventory	2.84	4.48	(36.61%)	Inventory Turnover Ratio decline is mainly on account of higher inventory holding to support planned scale-up of operations and to meet anticipated order book in the ensuing year.
6 Trade Receivables Turnover Ratio (In Times)	Revenue from Operations	Average Trade Receivable	7.35	7.97	(7.78%)	-
7 Trade Payables	Purchase	Average Trade	9.79	11.98	(18.28%)	-
8 Net Capital Turnover Ratio (In Times)	Revenue from Operations	Net Working Capital	4.58	7.28	(37.09%)	Net Capital Turnover Ratio decline is mainly on account of higher working capital deployed to support increased scale of operations, with growth in working capital base outpacing the growth in revenue.
9 Net Profit Ratio (In %)	Net Profit	Revenue form Operation	4.14	2.77	49.46%	Net Profit Ratio improvement is mainly on account of higher profitability during the year, supported by better ealisations, favourable product mix and operating leverage on increased volumes.
10 Return On Capital Employed (In %)	Earnings Before Interest and Taxes	Capital Employed	15.74	11.37	(38.43%)	Return on Capital Employed Ratio improvement is mainly on account of higher operating earnings during the year, with growth in EBIT outpacing the increase in capital employed.
11 Return On Investment (In %)	Income Generated from Investment Funds	Average Invested funds	0.63	0.35	85.29%)	Return on Investment Ratio improvement is mainly on account of higher income earned on the Companys investments compare to previous year.

CAUTIONARY STATEMENT:

Statements in this Management Discussion and Analysis contains "Forward Looking Statements" including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Companys future business developments and economic performance. While these forward-looking statements indicate our assessment and future expectations concerning the development of our business, several risks, uncertainties, and other unknown factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, general market, macroeconomic, governmental and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with us, legislative developments, and other key factors that could affect our business and financial performance. The Company undertakes no obligation to publicly revise any forward-looking statements to reflect future/ likely events or circumstances.

Date : June 26, 2026	For and on behalf of Board of Directors
Place : Ahmedabad	MANGALAM WORLDWIDE LIMITED
Registered office:	VIPIN PRAKASH MANGAL
102, Mangalam Corporate House,	CHAIRMAN
42, Shrimali Society, Netaji Marg,	DIN: 02825511
Mithakhali, Navrangpura,
Ahmedabad-380 009, Gujarat.