Manugraph India Ltd Management Discussions

Economic Overview FY 2025-26

India s real Gross Domestic Product (GDP) grew by 7.7% in the fiscal year 2025 26 (FY26), according to the official provisional estimates released by the Ministry of Statistics and Programme Implementation (MoSPI). This reflects an acceleration from the 7.1% growth recorded in FY24 25, positioning India firmly as the fastest-growing major economy globally.

PRINTING INDUSTRY

The Indian newspaper printing industry remains resilient, defying global trends of sharp decline. While print industries in Western markets face aggressive contractions, India continues to be one of the largest and most viable commercial print markets globally. This resilience is anchored by deep cultural habits, rising regional literacy, and hyper-localized advertising formats.

Publishers are protecting their bottom lines through aggressive cost-containment strategies at the press floor. To save raw input costs, companies have systematically reduced page counts (pagination) and eliminated free giveaway promotional copies. The primary mechanical setup utilizes heavy-duty web offset printing presses. These systems process massive reels of blank newsprint weighing over a ton through multi-story automatic units.

Key Structural Challenges: Asset Obsolescence, The extensive, multi-crore industrial printing setups acquired during the mid-2000s boom are reaching the end of their mechanical lifespans. Given the muted growth, major media houses face a massive capital crisis regarding whether to reinvest in expensive new physical presses. While newspapers successfully leverage digital infrastructure to gather news and publish online, they have structurally failed to match physical ad rates digitally.

COMPANY

The Company strived hard to increase its sales/turnover including exploring various national/international markets. The Company has immense engineering capability. The Company is in discussion with various global manufacturers for their component and/or machine manufacturing related to printing industry.

Operations during the year 2025-26 were strong. The Company recorded total revenue from operations of Rs. 8863.70 Lakhs as compared to Rs. 5934.82 Lakhs in the previous financial year. The EBIDTA for the financial year ended March 31, 2026 is Rs. 727.89 Lakhs as compared to Rs. (1160.52) Lakhs in the previous financial year ended March 3l, 2025. During the year, the Company earned net profit (total comprehensive income, net of taxes) of Rs. 476.29 Lakhs (after exceptional items) as compared to net loss of Rs. 2643.58 Lakhs in the previous year.

Opportunities

Opportunities for web offset printing machine manufacturers in India are pivoting toward education and book printing, Despite digital media growth, regional language publishing and high-volume packaging offer robust demand.

1. Educational and Book Publishing Expansion: The Indian education sector continues to rely heavily on printed textbooks. Government drives for mass literacy and regional language textbooks are fueling continuous, high-volume orders for publishers. Web offset technology remains the most cost-effective method for printing high-pagination, multi-color books at large volumes.

2. Retrofitting and Upgrading Existing Presses: A major revenue stream involves servicing the massive installed base of existing printing presses across India. Domestic manufacturers are finding opportunities by offering retrofits adding automatic tension controls, motorized register systems, and digital controls to older mechanical presses. The market for refurbished or second-hand web offset lines is expanding, providing an affordable entry point for smaller printing presses in Tier-2 and Tier-3 cities.

3. Emerging Markets: High demand for affordable, robust newspaper and book printing machinery in Africa, the Middle East, and Southeast Asia. Indian-made machines offer European-level print quality at a significantly lower capital expenditure and maintenance cost.

Threats

Web offset printing machine manufacturers in India face a shrinking newspaper market, intense competition from digital alternatives, and the influx of cheap refurbished machines. The ongoing decline in traditional print media due to readers shifting to online news and mobile reading has reduced the demand for large-scale, dedicated newspaper web offset presses.

However, expansion in market size and regionalization of printing is partly compensating this negative trend.

Outlook

The global web offset printing press market is projected to grow at a compound annual growth rate (CAGR) of 3.8%. However, this growth is heavily uneven, showing a stark contrast between a declining western market and a transforming domestic and emerging market landscape. Indian manufacturers are heavily shifting focus away from newspapers toward government education contracts. The massive volume requirements for printing state school textbooks and national exam curriculum guides make web offset presses far more economical than sheet-fed or digital options.

Risk and concerns

High costs of production, geographical concentration and competition risk are few of the major concerns for the Company. The Company has taken various measures which help the Company to outline the principal risks and uncertainties and then take appropriate actions that could avert operating and financial performance.

Normal foreseeable risks of the Companys assets are adequately covered by comprehensive insurance. Risk assessments, inspections and safety audits are carried out periodically.

Internal Control System

Adequate Internal Control System helps to prevent and detect frauds & errors, safeguarding of assets and accuracy and completeness of accounting records.

The Companys well-structured internal control systems which are subjected to regular assessment for its effectiveness, reinforces integrity of Management and fairness in dealing with the Companys stakeholders.

Your company has appointed an Independent Internal Audit teams for conducting regular internal audits of the systems and procedures of financial reporting and operations of the Company. The Audit Committee periodically reviews the Internal Audit Reports, scopes and plans, significant findings and corrective actions, if any.

The Statutory Auditors have conducted a review of Internal Financial Control as required under the Companies (Auditor s Report) Order, 2016 and have found the same to be very effective.

Key Financial Ratios:

In accordance with SEBI (Listing Obligations and Disclosure Requirements) (Amendment) Regulations, 2018, the details of significant changes (change of 25% or more as compared to the immediately previous financial year) are given below: