Meenakshi India Ltd Management Discussions

ECONOMY

ECONOMIC OVERVIEW

GLOBAL ECONOMY

The global economy remained resilient during CY2025 despite shifting trade policies, geopolitical uncertainty and uneven financial conditions. Global output expanded by an estimated 3.3% in CY2025 and the IMF expects growth to remain at 3.3% in CY2026 before easing marginally to 3.2% in CY2027. The stability of the headline numbers, however, conceals considerable differences across countries and sectors. Technology investment, particularly in artificial intelligence, data infrastructure and advanced manufacturing, supported activity while tariff changes and policy uncertainties continued to weigh on traditional trade and investment flows.

policy uncertainty continued to weigh on traditional trade and investment flows.

The year also demonstrated how quickly the global economy is adapting. Businesses responded to new tariffs by rerouting trade, diversifying suppliers and reviewing production locations. Supportive financial conditions, fiscal measures in several advanced economies and private-sector adaptability helped contain the wider impact. Even so, the IMF notes that the present resilience is supported by a relatively narrow group of sectors, leaving the outlook vulnerable to shifts in technology expectations, financial markets and geopolitical conditions.

GDP GROWTH PROJECTIONS - MAJOR ECONOMIES AND REGIONS (IN %)

	2025 (E)	2026 (P)	2027 (P)
World	3.3	3.3	3.2
US	2.1	2.4	2.0
Euro Area	1.4	1.3	1.4
China	5.0	4.5	4.0
Middle East & Central Asia	3.7	3.9	4.0
Sub-Saharan Africa	4.4	4.6	4.6
EMDEs	4.4	4.2	4.1

Inflation and trade

Global inflation continued to move lower, easing to an estimated 4.1% in CY2025 and projected to decline to 3.8% in CY2026 and 3.4% in CY2027. Inflation in advanced economies is expected to fall from 2.5% in CY2025 to 2.2% in CY2026, while inflation across emerging markets is likely to remain higher at 4.8%. The path of moderation will remain uneven. US inflation is expected to return to target more gradually while euro-area inflation is projected to remain close to 2%.

World trade volume grew by an estimated 4.1% in CY2025 but is projected to slow to 2.6% in CY2026 before recovering to 3.1% in CY2027. The slowdown reflects the unwinding of shipment front-loading and the adjustment of supply chains to revised trade policies. Trade is not disappearing, but it is becoming more regional, more strategic and more closely linked to technology and supply security.

but it is becoming more regional, more strategic and more closely linked to technology and supply security.

Outlook

The near-term outlook remains balanced between resilience and risk. Technology investment and easing inflation may support economic activity, while trade tensions, geopolitical escalation, elevated public debt and financial-market volatility could weaken confidence. For businesses, the key lesson is clear: future competitiveness will depend less on operating within stable conditions and more on the ability to respond quickly when those conditions change. Stronger regional networks, diversified sourcing, digital capability and disciplined capital allocation are therefore becoming essential elements of long-term resilience.

Major economies at a glance

Country/Region	Overview
United States	Growth was estimated at 2.1% in CY2025 and is projected to improve to 2.4% in CY2026
Euro area	Growth is expected to remain modest at 1.3% in CY2026 and 1.4% in CY2027. Public spending is likely to provide some support, but structural constraints, the lingering impact of higher energy costs and relatively weaker participation in the technology investment cycle may restrict the pace of recovery.
China	The economy grew by an estimated 5.0% in CY2025. Growth is projected to moderate to 4.5% in CY2026 and 4.0% in CY2027 as policy support and investment partly offset weak domestic demand and continuing structural pressures.
Middle East and Central Asia	Growth is expected to accelerate from 4.4% in CY2025 to 4.6% in CY2026 and remain at this level in CY2027. Macroeconomic stabilization, policy reforms and improving performance in key regional economies are expected to support this momentum.

GLOBAL INFLATION OUTLOOK (IN %)

	2025 (E)	2026 (P)	2027 (P)
World	4.1	3.8	3.4
Advanced Economies	2.5	2.2	2.1
EMDEs	5.2	4.8	4.3

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INDIAN ECONOMY

India continued to stand out as one of the worlds fastest-growing major economies during FY2025-26. Following the revision of the national accounts series to the base year 2022-23, real GDP growth for FY2024-25 was revised to 7.1%. Growth is estimated to have strengthened further to 7.6% in FY2025-26, supported by domestic consumption, investment activity and broad-based expansion across manufacturing and services. The economy displayed this momentum despite tariff-related uncertainty, geopolitical tensions and uneven global demand.

The strength of the year was not limited to one sector. Consumption remained an important anchor while infrastructure spending and private investment supported capacity creation. At the same time, manufacturing benefited from steady domestic demand and the gradual diversification of export markets.

INDIAS REAL GDP GROWTH TREND (IN %)

FY 2024-25 (FRE)	FY 2025-26 (SAE)	FY 2026-27 (P)
7.1%	7.6%	6.8-7.2%

Consumption:	Investment:	Manufacturing:	Services and trade:
Private Final Consumption Expenditure is estimated to have grown by 7.7%, reflecting improved household demand and stronger purchasing activity across rural and urban markets.	Gross Fixed Capital Formation is estimated to have expanded by 7.1%, supported by public infrastructure spending and improving private investment intentions.	Manufacturing GVA is estimated to have grown by 11.5% during FY2025-26, making it one of the major contributors to the acceleration in economic activity.	The tertiary sector is estimated to have grown by 9.0% while exports of goods and services increased by approximately 6.5% at constant prices.

The manufacturing sector demonstrated considerable adaptability during the year. Export-oriented businesses responded to tariff changes and slower demand in certain traditional markets by exploring alternative destinations, improving productivity and strengthening domestic supply networks. The Economic Survey noted that exports of goods and services continued to grow despite global headwinds, supported by market diversification and the relative strength of services exports. This ability to redirect trade and production has become increasingly important in a world where supply chains are being shaped as much by policy and resilience as by cost.

Inflation remained broadly manageable. Headline retail inflation stood at 3.40% in March 2026, within the Reserve Bank of Indias tolerance range. Rural inflation was recorded at 3.63% while urban inflation stood at 3.11%. Food inflation was slightly higher at 3.87%, reflecting pressure in selected food categories. Although inflation increased from the unusually low levels seen earlier in the year, the overall price environment remained supportive of consumption and economic activity.

INDIAS INFLATION SNAPSHOT - MARCH 2026

Rural CPI	Urban CPI	Headline CPI	Food Inflation
3.63%	3.11%	3.40%	3.87%

Outlook

Indias medium-term outlook remains favourable, supported by resilient domestic demand, healthier corporate and banking-sector balance sheets and continued policy emphasis on infrastructure and manufacturing. The Economic Survey projects real GDP growth of 6.8% to 7.2% in FY2026-27, indicating that the economy is expected to maintain a strong pace even after the higher growth recorded during FY2025-26. It also estimates that Indias medium-term growth potential has moved closer to 7%.

The Union Budget 2026-27 has reinforced this momentum by providing Rs. 12.22 lakh crore, or approximately 3.1% of GDP, towards capital expenditure. The continued emphasis on transport infrastructure, industrial corridors, urban development and logistics is expected to improve productivity and encourage private-sector investment.

For Meenakshi India Limited, the economic environment provides a constructive platform for growth. As an apparel manufacturer and exporter specialising in woven bottomwear, the Company is positioned to benefit from the diversification of global sourcing networks and Indias expanding manufacturing capabilities. Its status as a recognised export house and its established manufacturing base support its ability to serve international customers while responding to changing product, compliance and sustainability requirements.

The external environment will nevertheless require close monitoring. Currency movements, energy and logistics costs, tariff changes and demand conditions in key export markets may influence order flows and margins. The Company will therefore continue to focus on operating efficiency, responsible manufacturing, product development and deeper customer relationships to strengthen its position in an evolving global apparel value chain.

What matters most in the operating environment for Meenakshi India Limited?

Global sourcing diversification creating fresh export opportunities	Indias manufacturing strength supporting customer confidence	Cost, currency and tariff trends requiring close monitoring	Efficiency, responsible practices and customer relationships driving resilience

INDUSTRY STRUCTURE & DEVELOPMENTS

GLOBAL APPAREL INDUSTRY

Clothing has always been more than a basic necessity, it is one of the oldest and most universal forms of human expression, evolving continuously alongside culture, technology and commerce. Few industries touch as many lives, employ as many hands, or move as quickly with changing tastes as global apparel, making it a fascinating barometer of both consumer sentiment and industrial capability worldwide.

The global apparel market, valued at approximately USD 745 billion in FY2024-25, advanced to an estimated USD 785 billion in FY2025-26, supported by gradually improving discretionary spending, easing inflation and continued premiumisation across both mature and emerging consumer segments. Looking further ahead, the market is projected to scale to nearly USD 1,010 billion by FY2029-30, implying a healthy CAGR of around 7% over the period, as the proliferation of e-commerce, heightened digitisation and the emergence of new consumer segments continue to underpin structural demand growth.

Global Apparel Trade and Export Scenario

Global apparel exports have grown steadily over the past decade, reaching approximately USD 540 billion in FY2025-26, even as the pace of growth has moderated amid inflationary pressures, weak discretionary consumption in certain markets and periodic supply chain disruptions.

GLOBAL APPAREL MARKET SIZE & OUTLOOK

	FY2023-24	FY2024-25	FY2025-26	FY2029-30(P)
USD Billion	700	745	785	1010

Region	Share
China	25%
Bangladesh	10%
Vietnam	7%
Rest of World	52%

Management Discussion and Analysis Report

China continues to dominate this landscape, commanding an estimated 26% share of global apparel exports in FY2025-26, underpinned by its vast manufacturing base, integrated supply chains and deep-rooted trading relationships, even as this share has gradually eroded from significantly higher levels a decade earlier.

India, meanwhile, has continued to hold a modest but steadily improving share of roughly 3% of global apparel exports through FY2025-26, with momentum building on the back of tariff recalibrations and improving trade relationships.

Key Global Apparel Consumption Markets

On the demand side, a handful of geographies continue to anchor global apparel consumption, each shaped by distinct consumer behaviours, retail structures and regulatory environments. The United States remains the single largest apparel consumption market globally, valued at approximately USD 350-380 billion in FY2025-26, with import dependence exceeding 97% of domestic demand and physical retail staging a notable post-pandemic recovery alongside continued e-commerce growth.

Europe represents the second-largest consumption bloc, with the European Unions apparel and textile market valued at approximately USD 180-190 billion in FY2025-26, while the UK contributes a further USD 55-60 billion, both markets increasingly shaped by sustainability mandates and evolving regulatory frameworks such as the EUs Carbon Border Adjustment Mechanism. The Middle East has emerged as one of the fastest-growing

Reflecting this consumption base, apparel import volumes across these major economies remain substantial, with the United States and the European Union together accounting for the bulk of global apparel import demand, followed by the UK, the Middle East, Australia and Canada. These import figures underscore the sheer scale of opportunity available to compliant, well-diversified apparel exporters positioned to serve multiple geographies simultaneously.

Across these markets, retailer inventory levels, which remained elevated for nearly two to three years following the pandemic-era demand slowdown, have now largely normalised, setting the stage for a more stable and predictable ordering environment. This inventory correction, combined with improving discretionary demand, is translating into stronger order flows and better

apparel markets globally, valued at approximately USD 65-70 billion, driven by a young, increasingly digital-first consumer base and rapid growth in organised retail and e-commerce penetration. Australia and Canada, though comparatively smaller at approximately USD 30-35 billion each, remain attractive, stable, import-dependent markets characterised by strong brand consciousness and steady premiumisation trends.

Market	Value (USD Billion)
US	365
Europe (EU)	185
UK	58
Middle East	68
Australia	32
Canada	28

Market	Value (USD Billion)
US	96
Europe (EU)	88
UK	32
Middle East	22
Australia	12
Canada	11

capacity utilisation for suppliers across these geographies heading into FY2026-27, even as e-commerce penetration and digital retail adoption continue to vary meaningfully from one market to another.

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Figure 1: Indias textile and apparel exports

INDIAN APPAREL INDUSTRY

Indias apparel and textiles industry continues to anchor itself firmly within the nations economic framework, with steadily rising exports and global relevance. The sector remains a significant driver of employment, providing direct jobs to upwards of 45 million people across manufacturing, logistics and allied services, including a large proportion of women and rural populations, making it the second-largest employment provider in the country after agriculture. Strong domestic demand propelled by an expanding middle-income demographic, shifting consumption habits and rapid urbanisation is driving market expansion, while formalisation of supply chains and swift growth of organised retail are further bolstering growth.

INDIAS TEXTILE & APPAREL EXPORTS

	FY21-22	FY22-23	FY23-24	FY24-25	FY25-26
USD Billion	44.4	35.6	34.4	36.6	35.8

and swift growth of organised retail are further bolstering growth.

Indias total textile and apparel exports stood at approximately USD 35.8 billion in FY2025-26, broadly steady compared with USD 36.6 billion in the previous year, as a temporary dip in shipments during March 2026 amid West Asia-related disruptions weighed on an otherwise resilient full-year performance. Apparel constitutes the largest segment within Indias textile value chain, accounting for an estimated 44% of total textile and apparel exports, with the United States, the European Union, Bangladesh, the UAE and the UK collectively representing the majority of export destinations.

INDIAS TOP EXPORT MARKETS FOR TEXTILE & APPAREL (FY2025-26)

Market	USD Million
USA	10,450
EU-27	7,150
Bangladesh	2,870
UAE	2,090
UK	2,080
China	1,160
Sri Lanka	710
Turkey	680
Australia	670
Saudi Arabia	560

Government-led initiatives in India are opening fresh opportunities by advancing diversification, encouraging innovation and emphasising man-made fibres, technical textiles and sustainable manufacturing. India continues to produce all five principal natural fibres including cotton, jute, silk, wool and linen, and is channelling significant public and private investment towards modernising infrastructure and increasing capacity across the value chain.

FDI inflows into Indias textile and apparel industry have exhibited considerable volatility over the past decade, peaking at approximately USD 619 million in FY2022-23 before moderating to USD 309.7 million in FY2025-26, reflecting a broader normalisation in global capital flows following the exceptional post-pandemic surge. Even so, cumulative FDI into the sector remains meaningfully higher than pre-2020 levels, underscoring sustained investor confidence in Indias long-term textile manufacturing story.

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Figure 1: Management Discussion and Analysis Report

Government Initiatives

The Government of India has intensified its focus on making the textile and apparel sector globally competitive through a comprehensive array of policy measures, infrastructure investments and targeted incentive schemes that are powering the sectors modernisation, export readiness and long-term resilience. These include the PM MITRA Parks scheme (Mega Integrated Textile Region and Apparel Parks), the Production Linked Incentive (PLI) Scheme, the Amended Technology Upgradation Fund Scheme (ATUFS), Samarth (Scheme for Capacity Building in the Textile Sector), Export Facilitation Schemes - RoSCTL, RoDTEP and MAI and the National Technical Textiles Mission (NTTM). These schemes have been pivotal in enhancing capacity, modernizing infrastructure and creating employment opportunities.

The government continues to pursue Free Trade Agreements with key markets, including the recently concluded India-UK Comprehensive Economic and Trade Agreement being signed with the European Union, yet to be operational, aimed at securing preferential tariff access for Indian textile and apparel exports. Alongside

this, continued rationalisation of import duties on key raw materials, including cotton and man-made fibres, is helping ease input cost pressures and improve the competitiveness of downstream apparel manufacturing.

The Union Budget for FY2025-26 has placed textiles at the centre of the governments manufacturing and export agenda, with a marked step-up in allocations across flagship schemes. The Ministry of Textiles overall budgetary outlay has been increased meaningfully, with allocations weighted heavily toward capacity creation, technology upgradation and export incentivisation, reflecting a clear policy intent to scale Indias global textile footprint over the medium term.

In addition to the scheme-specific allocations discussed above, the FY2025-26 budget has also introduced targeted customs duty relief on key textile machinery and technical textile inputs, aimed at lowering the cost of capacity expansion for exporters. The budget further continues to support the National Cotton Mission, which seeks to improve cotton productivity and quality through better seed technology and extension services, addressing a long-standing structural constraint for the industry.

Government support strengthening textile competitiveness

Integrated textile parks supporting scale and infrastructure	Technology and skill schemes enabling modern manufacturing	Export incentives and trade agreements improving market access	Duty relief and cotton initiatives easing input-cost pressures

Industrys Push Toward Global Fashion Leadership

Indias apparel manufacturing base is increasingly adopting new-age technologies and design capabilities to project itself as a credible global supplier of fashionable, trend-responsive garments rather than merely a low-cost production base. Leading Indian exporters are investing in automation, 3D sampling and digital pattern-making tools that meaningfully compress design-to-shelf timelines, enabling faster response to fast-fashion cycles that were once the exclusive preserve of competing sourcing hubs.

Artificial Intelligence and predictive analytics are being deployed across demand forecasting, trend analysis and inventory planning, helping Indian manufacturers align production more closely with global fashion cycles and reduce inventory risk for their brand partners. At the same time, sustainability-led innovation including organic and traceable cotton programmes, water-efficient dyeing technologies and recycled fibre integration is enabling Indian exporters to meet the stringent ESG and traceability requirements increasingly demanded by global fashion retailers.

Indian manufacturers are also expanding into higher-value, design-intensive categories such as athleisure, intimate wear and technical sportswear, moving up the value chain from basic woven and knitted garments. Growing merger and acquisition activity, capacity expansions overseas, and deepening relationships with global fashion houses are further strengthening Indias positioning as a full-service apparel partner capable of managing design, compliance and speed-to-market simultaneously attributes increasingly critical to earning a larger share of global fashion sourcing wallets.

India: A bright spot on the global apparel stage

India is steadily emerging as one of the most credible large-scale alternatives to concentrated global apparel sourcing, underpinned by a rare combination of scale, cost competitiveness and manufacturing depth. The country ranks as the worlds sixth-largest apparel exporter and is the only major sourcing nation that is simultaneously self-sufficient across the entire value chain from raw cotton and man-made fibre production through to spinning, weaving, processing and garmenting reducing dependence on imported inputs that many competing nations continue to grapple with.

India is home to over 3,400 textile mills and more than 4.5 million handloom workers, supporting a vertically integrated ecosystem that few other countries can replicate at comparable scale. Its demographic advantage is equally compelling: with nearly 65% of the population under the age of 35 and a steadily expanding pool of trained garment workers, India offers global brands a long runway of consistent, scalable labour availability at a time

Indias Rise as a Global Fashion Partner
Sustainable innovation meeting evolving global compliance needs
Higher-value categories expanding Indias apparel proposition
Integrated supply chains strengthening sourcing diversification appeal
Automation and analytics improving planning and inventory precision
Scale and skilled workforce supporting dependable long-term capacity
Larger compliant exporters gaining from vendor consolidation
Global brand relationships strengthening full-service partnership potential

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when several competing sourcing hubs face demographic headwinds and rising wage pressures.

As global brands increasingly consolidate their vendor base to work with fewer, larger and more compliant suppliers, Indias growing base of large, professionally managed, export-oriented manufacturers is well positioned to capture disproportionate share of this consolidation. Continued geopolitical uncertainty and rising compliance costs in traditional sourcing hubs have further strengthened Indias relative attractiveness, with global apparel retailers increasingly citing India alongside Vietnam as their preferred long-term sourcing diversification destination beyond China.

Outlook

Indias textile and apparel sector is well placed to sustain its growth momentum into FY2026-27 and beyond, supported by a supportive policy architecture, an expanding manufacturing base and improving global

sourcing dynamics. The governments ambitious target to more double Indias textile and apparel market to approximately USD 350 billion by FY2029-30, from around USD 194 billion currently, envisages export growth at a CAGR of nearly 22% alongside steady domestic consumption growth of around 10% reflecting confidence in the sectors ability to scale both internationally and at home.

Domestic consumption is expected to remain the primary growth engine, rising from approximately USD 157 billion currently to nearly USD 265 billion by FY2030-31, while exports are projected to more than double over the same period to approximately USD 85 billion, aided by anticipated Free Trade Agreements with the UK and the EU, sustained policy support and continued global supply chain diversification away from concentrated sourcing hubs. Taken together, these structural tailwinds position India to meaningfully expand its share of global textile and apparel trade over the coming years.

OPPORTUNITIES

Opportunities	Threats
India-EU Free Trade Agreement: The India-EU FTA, signed, yet to be operations is a zero-duty access for apparel into the EU removes tariffs of up to 12% materially improving landed-cost competitiveness in a market the Company already serves.	US tariff uncertainty: The initial 25% US tariff on Indian apparel, which was subsequently increased to 50% significantly impacted FY26 revenues; although the tariff has since been reduced to 10% uncertainty persists as geopolitical tensions could lead to further duty hikes at any time, potentially eroding order books and margins.
India-UK CETA: Duty-free entry into the UK opens a large bottom-wear market and supports diversification away from a single dominant geography	Discretionary demand softness: Inflation and cautious consumer sentiment in Western markets can slow replenishment and delay order confirmations.
China+1 and supply-chain diversification: Global brands continuing to de-risk sourcing away from China are actively qualifying Indian vendors with scale, compliance and consistency.	Raw material price volatility: Movements in cotton, MMF and yarn prices, and delays in passing them through, can compress margins.
Access to capital markets: Listing on the BSE Main Board enhances visibility, broadens funding options for growth capex and strengthens the governance platform for institutional customers.	Skilled labour availability and attrition: Persistent shortages of trained operators in the apparel cluster constrain capacity utilisation and expansion timelines.
Premiumisation and value-added products: Growing demand for performance finishes, stretch and structured outerwear allows a shift up the realisation curve from commodity bottom-wear.	Geographic concentration: Over-reliance on limited geographies (like the EU or US) makes the exporter vulnerable to regional downturns, currency crisis or regulatory changes in those regions.
Vendor consolidation by global brands: Buyers are reducing vendor counts and deepening relationships with fewer full-service partners, favouring end-to-end manufacturers with in-house capability.	Intense competition among sourcing countries: India competes with Bangladesh, Vietnam, China, Sri Lanka, Indonesia and other apparel-exporting countries. Several competing markets benefit from lower labour costs, large-scale garmenting capacity, preferential trade access or specialised product ecosystems.
AI and automation adoption: Industry-wide AI adoption is improving efficiency and cutting waste by up to 30% Meenakshi can leverage AI for quality checks, production planning and demand forecasting to enhance delivery reliability
Sustainability as a commercial differentiator: Brand mandates on traceability, recycled fibre and lower water and energy intensity favour vendors that invest early in certified, auditable operations.
Product-category diversification: Opportunities exist to extend this expertise into adjacent segments such as expanding in womens wear and entering into athletics, casual lifestyle products and specialised apparel.

STRATEGIC RESPONSES TO EXTERNAL SHOCKS:

SAFEGUARDING BUSINESS CONTINUITY IN FY2025-26

Geographic manufacturing diversification (Sri Lanka MoU): Signed a contract-manufacturing MoU with a Sri Lankan factory to offer customers an alternative country-of-origin option, mitigating US tariff disadvantages and preserving order books.

Strategic pricing discipline and customer discounts: Worked closely with key US customers on pricing adjustments and selective discounts to absorb part of the tariff-induced cost increase, ensuring customer retention despite volume moderation.

Debt-free balance sheet and liquidity buffer: Maintained a debt-free status with enough cash reserves, providing financial flexibility to absorb tariff shocks, fund capex and weather demand volatility without stress.

Customer base retention focus: Prioritised retaining the existing US customer base (which remained largely intact) through service reliability, quality consistency and flexible commercial terms, even as order volumes moderated.

Margin Adjustment through Domestic Order Intake: Onboarded domestic brands to optimise capacity utilisation across manufacturing facilities and recover fixed overheads, albeit with a moderating impact on overall revenue realisation.

Productivity and operational efficiency: Improved line balancing, reduced rejections and rework, and raised capacity utilisation to lower per-piece conversion cost.

Compliance, certification and buyer confidence: Sustained investment in social, environmental and quality certifications, and strengthened governance and disclosure standards following the BSE Main Board listing, reinforcing the Companys position with global buyers evaluating vendor risk.

Cost rationalisation: Undertook a disciplined review of overheads, consumables and non-critical spending across the three Salem units, without compromising quality or delivery commitments.

COMPANY OVERVIEW

Meenakshi (India) Limited is an established apparel manufacturer specialising in premium woven garments for leading international and domestic fashion brands. With a legacy spanning more than four decades, the Company has evolved into a trusted sourcing partner, offering end

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to-end capabilities across product development, sampling, fabric sourcing, manufacturing, washing, finishing and quality assurance. Its expertise lies in premium bottomwear, outerwear and fashion-oriented apparel, catering to the evolving requirements of global retailers and lifestyle brands.

The Company operates three integrated manufacturing facilities in Salem, Tamil Nadu, supported by modern production infrastructure, specialised finishing capabilities and stringent quality-control systems. Its operations are backed by internationally recognised social and environmental compliance standards, enabling it to serve customers that place strong emphasis on responsible and sustainable sourcing.

Meenakshi (India) has built long-standing relationships with several renowned international brands across Europe, the UK, the US, Australia, Canada and the Middle East, while also serving leading domestic fashion labels. Its diversified customer portfolio reduces dependence on a single market and reflects the Companys ability to meet varying design, quality and compliance requirements across different geographies.

BUSINESS PERFORMANCE

Key Financial Highlights for FY 2025-26:

Particulars	Year ended March 31, 2026	Year ended March 31, 2025
Revenue from Operations	150.75	166.33
PBDIT	12.93	51.05
Interest and Financial Charges	0.56	1.12
Cash Profit	15.52	48.09
Tax expenses	5.07	8.99
Net Profit	10.46	39.18
Net worth	130.65	119.29

Management Discussion and Analysis Report

RISK AND CONCERN

The Company has laid down a well-defined risk management mechanism covering the risk mapping and trend analysis, risk exposure, potential impact and risk mitigation process. A detailed exercise is being carried out to identify, evaluate, manage and monitor business and non-business risks. The Audit Committee and the Board periodically review the risks and suggest steps to be taken to manage/mitigate the same through a properly defined framework.

Principal risk	Potential concern	Risk mitigation measures
Trade policy and tariff risk	Changes in tariffs or trade restrictions may affect landed costs, competitiveness and customer sourcing decisions.	The Company monitors trade-policy developments in major markets and maintains regular communication with customers. It is expanding its engagement across Europe and other geographies to reduce dependence on any single tariff regime. Alternate manufacturing locations may also be evaluated where they offer a sustainable trade or cost advantage.
Geographic concentration risk	A significant share of revenue is derived from the United States, exposing earnings to a single markets tariff, policy and demand cycle.	Active diversification into the EU, UK and Canada, supported by the India\u2013EU FTA and India\u2013UK CETA, to rebalance the export mix.
Customer concentration risk	Reduction or withdrawal of business by a significant customer may affect order visibility and production planning.	The Company continues to develop new customer relationships across multiple markets. It also seeks to increase the number of product categories supplied to existing customers and regularly reviews customer-wise exposure.
Pricing and margin risk	Customer concessions and intense competition may affect order profitability.	Orders are evaluated for their commercial and strategic value before acceptance. The Company focuses on productivity improvement, cost control and value-added garment categories. Lower-margin orders are undertaken selectively where they support customer retention or efficient utilisation.
Raw-material price risk	Increases in fabric, yarn, trims, chemicals or energy costs may not be fully recoverable from customers.	The Company maintains an approved supplier network, seeks competitive quotations and aligns procurement with confirmed orders. Price trends are monitored regularly and customer negotiations are initiated where material changes are substantial.
Supplier and material-availability risk	Dependence on specialised or customer-nominated suppliers may lead to delays or shortages.	Multiple approved suppliers are developed wherever possible. Critical materials are identified at the order-planning stage and procurement timelines are monitored through the production cycle. Limited safety stocks may be maintained for essential long-lead items.
Quality risk	Product defects or failure to meet customer specifications may lead to rework, claims or rejection.	The Company follows defined AQL level quality-control procedures across material inspection. Root-cause analysis and corrective action are undertaken for significant deviations.
Delivery risk	Delays in materials, production or logistics may affect seasonal customer programmes.	Order milestones are monitored through production-planning systems and regular review meetings. Potential delays are escalated early and production lines may be rescheduled to protect priority shipments. Alternate logistics arrangements are used where commercially feasible.

Principal risk	Potential concern	Risk mitigation measures
Workforce and productivity risk	Employee attrition or shortage of skilled operators may affect efficiency and delivery.	The Company invests in skill development, supervisor training and multi-skilling. Employee welfare, workplace safety and engagement programmes support retention. Productivity is monitored at line level and corrective training is provided where required.
Environmental and climate risk	Water scarcity, extreme weather and stricter environmental requirements may affect production and customer acceptance.	Renewable energy, water recycling and pollution-control systems form part of the Companys environmental approach. Consumption trends are monitored and contingency planning is undertaken for water, power and weather-related disruptions.
Regulatory risk	Changes in taxation, labour laws, environmental standards or export regulations may increase compliance requirements.	Regulatory developments are monitored through internal teams and professional advisers. Policies and procedures are updated promptly and functional teams are trained on relevant changes.
Competition risk	Bangladesh, Srilanka and other sourcing hubs benefit from lower wage costs and preferential duty access in key markets.	Focus on value-added and premium products, reliability of delivery, quality consistency and full-service manufacturing capability rather than price alone.

FUTURE OUTLOOK

Having navigated a challenging FY2025-26 marked by US tariff volatility, geopolitical uncertainty and softer demand in key export markets, Meenakshi (India) Limited enters FY2026-27 with renewed confidence, improved operational resilience and a clearer strategic roadmap. The Companys ability to preserve customer relationships, maintain a debt-free balance sheet and turn core garment EBITDA positive in Q1FY27 reflects the effectiveness of its risk-mitigation measures and positions it well for sustainable growth.

Management expects FY2026-27 to be a year of consolidation and gradual recovery, supported by stabilising US demand, Indias improved tariff positioning under the February 2026 bilateral framework and the global sourcing diversification trend favouring Indian manufacturers. Capacity utilisation is targeted to improve progressively in FY27, driven by higher order visibility from existing customers, selective onboarding of new accounts and continued contribution from domestic brands to optimise fixed-cost absorption.

Looking ahead, Meenakshi India has outlined a clear capacity-expansion roadmap to more than double manufacturing capacity to 38 lakh pieces by FY30 from approximately 18 lakh pieces currently, supported by phased capital expenditure. This measured approach ensures that capacity additions are backed by order-book strength, minimising execution risk and under utilisation concerns.

The Company remains mindful that the operating environment continues to carry uncertainty, including the evolving trajectory of US trade measures, currency volatility, input cost movements and the pace of consumer demand recovery in Western markets. Nevertheless, with a diversified market strategy, a strengthened balance sheet, a disciplined cost structure and a clear expansion roadmap, the Board views the outlook for FY2026-27 with confidence and expects the Company to deliver improved performance and steady progress towards its mediumterm objectives.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has established an internal control framework that is commensurate with the nature, scale and complexity of its apparel manufacturing and export operations. The framework covers key business functions including procurement, inventory management, production planning, quality control, sales, export documentation, finance, human resources and statutory compliance. These controls are designed to support the orderly conduct of business, safeguard the Companys assets, ensure proper authorisation of transactions and maintain accurate and complete accounting records.

Management Discussion and Analysis Report

The Company has defined policies, standard operating procedures and approval mechanisms across its principal functions. These are intended to prevent and detect frauds and errors, ensure the timely preparation of reliable financial information and promote compliance with applicable laws, regulations and internal policies. The internal financial controls with reference to the financial statements are reviewed periodically and corrective measures are implemented wherever required to strengthen the overall control environment.

The internal audit function independently reviews the adequacy and effectiveness of financial, operational and compliance controls in accordance with the audit plan approved by the Audit Committee. The Internal Auditor reports its observations, control gaps and recommendations directly to the Audit Committee. The Committee periodically reviews the internal audit findings, management responses and the status of corrective actions. This process enables the Company to address identified weaknesses in a timely manner and continuously improve its systems and procedures.

M/s. A. K. LUNAWATH & ASSOCIATES, Chartered Accountants have been appointed as the Internal Auditors of the Company. Their audit coverage is aligned with the Companys business activities and risk profile with particular emphasis on financial controls, inventory, procurement, production processes, regulatory compliance and risk management practices.

M/s. CHATURVEDI & CO. LLP, Chartered Accountants, the Statutory Auditors of the Company have audited the financial statements forming part of this Annual Report. They have also reviewed the adequacy and operating effectiveness of the Companys internal financial controls with reference to financial reporting in accordance with the requirements of Section 143(3)(i) of the Companies Act, 2013.

M/s. MUNDHARA & CO., Company Secretaries, the Secretarial Auditors of the Company, have conducted the Secretarial Audit for the year under review, and their report forms part of this Annual Report. They have reviewed the Companys compliance with the provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Companies Act, 2013, and other applicable laws, rules and regulations.

Based on the reviews undertaken during the year and the reports placed before the Audit Committee, the Company believes that its internal control systems and internal financial controls with reference to financial reporting were adequate and operating effectively during the year under review. The Company remains committed to periodically reviewing and strengthening these controls in line with changes in its operations, regulatory requirements and emerging business risks.

MATERIAL DEVELOPMENT IN HUMAN RESOURCES/ INDUSTRIAL RELATIONS

At Meenakshi (India) Limited, people form the foundation of the Companys manufacturing capabilities, quality standards and customer relationships. Given the apparel businesss dependence on skilled craftsmanship, production discipline and adaptability to evolving styles, fabrics and specifications, the Company remains focused on building a capable, engaged and responsible workforce aligned with its commitments to quality, sustainability and timely execution.

The Company emphasises skill development through induction programmes, on-the-job learning, technical training to the tailors and regular production-floor guidance. Employees are trained in garment construction, machine operations, quality control, workplace safety and customer-specific requirements, while supervisors and production teams are encouraged to enhance line efficiency, minimise wastage and maintain consistency across styles and product categories. As customer expectations around quality, traceability and responsible manufacturing evolve, employees are regularly sensitised to applicable compliance standards and operating procedures, including workplace conduct, occupational health and safety, social compliance, environmental responsibility and prevention of sexual harassment.

Employee welfare remains integral to the Companys people practices. The Company endeavours to provide a safe, inclusive and respectful workplace supported by appropriate welfare facilities, grievance-resolution mechanisms and open communication between employees and management, with particular attention to the welfare, safety and development of women employees who constitute a significant part of the apparel manufacturing workforce. The Company also encourages employee participation in operational improvements, considering feedback from production teams, quality personnel and supervisors to foster ownership and enable practical, shop-floor-driven enhancements.

The Human Resource function continues to focus on attracting, developing and retaining employees with the technical skills and behavioural attributes required for the Companys evolving business, with training, multiskilling

and internal capability development as key priorities to support product-portfolio expansion, strengthened customer servicing and preparedness for greater technology and automation adoption. During FY 2025-26, no complaints were filed under the Sexual Harassments of Women at Workplace (Prevention and Redressal) Act, 2013. The company has maintained cordial industrial relations throughout the year, reflecting its strong employee-employer relationship framework.

As at 31st March 2026, the Company employed 1200+ employees. The Company acknowledges the commitment and contribution of its workforce and remains focused on nurturing a skilled, motivated and future-ready team capable of supporting its long-term growth objectives.

CAUTIONARY STATEMENT

This statement made in this section describes the Companys objectives, projections, expectation and estimations which may be forward looking statements within the meaning of applicable securities laws and regulations. Forward-looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realised by the Company. Actual result could differ materially from those expressed in the statement or implied due to the influence of external factors which are beyond the control of the Company. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements on the basis of any subsequent developments.

Notice

NOTICE TO SHAREHOLDERS

NOTICE is hereby given that the 44th Annual General Meeting of the Members of MEENAKSHI (INDIA) LIMITED will be held on Monday, the 28th day of September, 2026 at 12.00 noon. IST through Video Conferencing (VC) / Other Audio-Visual Means (OAVM), to transact the following business:

Ordinary Business:

To receive, consider and adopt the Audited Standalone Financial Statements along with the Independent Auditors Report of the Company as at 31st March, 2026.

To appoint a Director in place of Mr. ASHUTOSH GOENKA (DIN: 00181026) who retires by rotation and being eligible offers himself for re-appointment.

Special Business:

To approve sub-division/split of face value of equity shares of the company from of Rs. 10/- (Rupees Ten Only) to Rs. 5/- (Rupees Five Only) of equity shares of the company and consequent alteration of capital clause of Memorandum of Association:

To consider and if thought fit, to pass with or without modification(s), the following resolution as an Ordinary Resolution

RESOLVED THAT, pursuant to Section 61(1)(d), 64 and other applicable provisions, if any, of the Companies Act, 2013 (including any statutory modification(s) or re-enactment(s) thereof, for the time being in force) read with the applicable provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended and subject to the provisions of the Memorandum and Articles of Association of the Company and such other approval(s), consent(s), permission(s) and sanction(s) as may be necessary from the appropriate statutory authority(ies), the approval of the Members of the Company be and is hereby accorded for sub-division / split of the existing equity shares of the Company, such that each equity share having a face value of ? 10/- (Rupees Ten only), fully paid-up, be sub-divided into 2 (Two) equity shares having a face value of ? 5 (Rupees Five only) each, fully paid-up, with effect from the Record Date to be determined by the Board of Directors for this purpose.

RESOLVED FURTHER THAT, the sub-divided Equity Shares having a face value of ? 5/- each shall rank pari passu in all respects with each other and carry the same rights as to the existing Equity Shares of face value of ? 10/- each of the Company.

RESOLVED FURTHER THAT, upon sub-division of the Equity Shares as aforesaid and with effect from the Record Date:

a. For equity shares held in physical form, if any, the existing share certificate(s) in relation to the said equity shares, shall be deemed to have been automatically cancelled and shall be of no effect and in lieu of the same the Company shall issue letter of confirmation(s) and/or credit the sub-divided equity shares, in compliance with the applicable laws/ guidelines in this regard; and

b. For the Equity Shares held in dematerialised form, the sub-divided equity shares shall be credited proportionately into the respective beneficiary demat accounts of the Members held with Depository Participants, in lieu of the existing credits present in their respective beneficiary demat accounts.

RESOLVED FURTHER THAT, pursuant to Section 13, 61 and other applicable provisions, if any, of the Companies Act, 2013 (including any statutory modification(s) or re-enactment(s) thereof, for the time being in force), the Memorandum of Association of the Company be and is hereby altered by substituting the existing Clause V with the following new Clause V:

V. The Authorised Share Capital of the Company is ? 15,00,00,000/- (Rupees Fifteen Crores Only) divided into 3,00,00,000 (Three Crores) Equity Shares of ? 5/- each (Rupees Five Only) each with power to increase or reduce the same in accordance with the provision of Companies Act 2013.

RESOLVED FURTHER THAT Mr. ASHUTOSH GOENKA (DIN: 00181026), Managing Director, Mr. SHUBHANG GOENKA (DIN: 06980306), Wholetime Director and Ms. KANCHAN RATHI, Company Secretary & Compliance officer of the Company, be and are hereby severally authorised to do all such acts, deeds, matters and things including to fix and announce the Record Date, to make appropriate adjustments on account of sub-division of Equity Shares, to accept and make any alteration(s), modification(s) to the terms and conditions as they may deem necessary, concerning any aspect of the sub-division of Equity Shares, in accordance with statutory requirements as well as to delegate all or any of its/their powers herein conferred