Meera Industries Ltd Management Discussions

Prepared pursuant to Regulation 34(2)(e) read with Schedule V of the SEBI

(Listing Obligations and Disclosure Requirements) Regulations, 2015

Management perspective

FY 2025-26 was a year of business transition. Revenue remained broadly resilient, but profitability moderated sharply as the Machine Division operated against a strong prior-year base and the Plastic Division continued its scale-up. The Company nevertheless generated positive operating cash flow and reduced borrowings, preserving financial flexibility for the next phase of growth.

Company identi cation
ManaCorporate Identity Number	L29298GJ2006PLC048627
BSE Scrip Code / Symbol	540519 / MEERA
ISIN (post sub-division)	INE343X01026
Registered Office	2126, Road No. 2, GIDC, Sachin, Surat -
	394230, Gujarat, Indiagement perspective

01. BASIS OF PREPARATION AND EXECUTIVE OVERVIEW

This Management Discussion and Analysis Report ("MD&A") should be read in conjunction with the audited standalone and consolidated financial statements of Meera Industries Limited ("Meera" or "the Company") for the year ended March 31, 2026, together with the notes thereto and the Boards Report. Unless otherwise stated, financial information in this report is presented on a consolidated basis and amounts are in Indian Rupees lakh.

The consolidated financial statements include the financial performance of the Company and its overseas subsidiary. The statutory auditors issued unmodified opinions on the audited standalone and consolidated financial results for FY 2025-26. The analysis below focuses on operating performance, financial position, key business drivers, principal risks and management priorities.

www.meeraind.com

Executive review of FY 2025-26

Consolidated revenue from operations was Rs. 3,783.21 lakh, compared with Rs. 3,984.93 lakh in FY 2024-25, a decrease of 5.1%. Consolidated profit before tax was Rs. 113.37 lakh and profit after tax was Rs. 98.40 lakh, compared with Rs. 462.35 lakh and Rs. 372.18 lakh, respectively, in the previous year. The reduction in profitability was principally linked to lower Machine Division revenue, losses during the scale-up of the Plastic Division and a higher finance-cost burden. The operating mix changed materially during the year. Machine Division revenue declined by 26.7% to Rs. 2,260.52 lakh but remained profitable, while Plastic Division revenue increased by 69.1% to Rs. 1,522.68 lakh. The Plastic Division, however, reported a segment loss of Rs. 191.88 lakh, showing that the business had not yet achieved the utilisation, product mix and cost absorption required for sustainable profitability.

Financial discipline remained an important counterbalance. Net cash generated from

080 operating activities was Rs. 646.88 lakh. Total borrowings reduced to approximately Rs. 594.39 lakh from Rs. 821.00 lakh, and consolidated net worth increased to Rs. 2,989.88 lakh. Managements immediate priorities are therefore to improve the quality and conversion of the machinery order pipeline, stabilise and scale the Plastic Division, strengthen margins, and maintain tight control over working capital and capital expenditure.

Key developments during the year

? An interim dividend of Rs. 0.50 per equity share of face value Rs. 10 was declared for FY 2025-26 on shares held by shareholders other than the promoters, whose entitlement was voluntarily waived.

? Each equity share of face value Rs. 10 was sub-divided into two equity shares of face value Rs. 5, with March 6, 2026 as the record date. Prior-period earnings per share have accordingly been restated wherever applicable.

? The Company continued to leverage its in-house engineering and R&D capabilities, customisation expertise, export footprint and after-sales support to address specialised yarn-processing applications.

02. ECONOMIC AND INDUSTR

OVERVIEW

Operating environment

FY 2025-26 was characterised by uneven global demand, continued geopolitical uncertainty, currency volatility and cautious capital expenditure across several manufacturing markets. At the same time, Indias manufacturing ecosystem continued to benefit from infrastructure development, formalisation, import-substitution initiatives, increased automation and a growing emphasis on energy efficiency and quality consistency. For engineering companies, execution capability, technology differentiation, financing availability and after-sales support remained important determinants of competitiveness.

Textile machinery industry

Demand for textile machinery is linked to the investment cycle of spinning, weaving, technical textile, carpet, industrial thread, FIBC, rope, sewing thread and related downstream manufacturers. Customers increasingly seek machines that provide higher output, lower energy consumption, consistent twist quality, operator-friendly controls, flexible configurations, remote diagnostics and a lower lifecycle cost. The market therefore favours suppliers that can combine application knowledge, engineering customisation, reliable manufacturing and responsive service. The Indian market offers long-term opportunities through replacement of ageing equipment, adoption of automation, technical-textile capacity creation and import substitution. Export markets widen the addressable opportunity but also expose manufacturers to foreign exchange movements, freight conditions, local competition, trade barriers and geopolitical developments. Order timing can be volatile because textile machinery is a capital product and customer decisions depend on capacity utilisation, financing and end-market visibility.

Flexible packaging and CPP film industry

Cast polypropylene (CPP) film is used in flexible packaging and multiple industrial

applications where sealability, transparency, barrier properties, printability and processing

consistency are relevant. Demand is supported by packaged food, consumer products, pharmaceutical, labelling, lamination and other converting applications. The business is, however, scale-sensitive and competitive. Profitability depends on resin prices, capacity utilisation, yield, quality consistency, energy cost, customer approvals, product mix, credit discipline and the ability to respond quickly to changing market prices.

Industry implication for Meera

Meera operates across two businesses with different economic characteristics: customised textile machinery, where technology, application engineering and order execution are critical; and plastic films, where utilisation, operating efficiency, market development and disciplined pricing are central. A balanced portfolio can broaden revenue sources, but it also requires focused segment-level accountability and capital allocation.

03. COMPANY OVERVIEW, BUSINESS MODEL

AND STRATEGY

Meera Industries Limited is an engineering-led manufacturer of customised twisting, cabling, winding, covering, heat-setting and related yarn-processing machinery. The Company serves applications across carpets and rugs, FIBC and woven sacks, industrial and sewing threads, technical textiles, packaging, fishnets and textile fabrics. Its value proposition is based on application knowledge, customised design, precision manufacturing, product innovation, process support and lifecycle service.The Company operates an ISO 9001:2015-certified manufacturing platform in Surat and has a DSIR-recognised in-house R&D capability. Its international reach, including the presence of Meera Industries USA, LLC, supports customer engagement, market development and after-sales service outside India. During recent years, Meera diversified into the Plastic Division, including CPP film activities, to participate in the flexible packaging value chain and create an additional growth platform.04

Strategic priorities
Priority	Management focus	Intended outcome
Core machinery growth	Deepen presence in specialised applications, expand exports, strengthen order conversion and grow spares/service revenue.	Higher-quality revenue, stronger customer lifetime value and improved operating leverage.
Product and technology leadership	Continue application-led R&D, automation, energy-e ciency, controls, digital diagnostics and customised engineering.	Di erentiation from standardised and low-cost competition.
Plastic Division stabilisation	Improve utilisation, yield, quality, customer approvals, product mix, pricing and raw-material management.	Progressive reduction in segment losses and a path to sustainable returns.
Financial discipline	Optimise working capital, reduce avoidable nance cost, prioritise high-return capex and maintain prudent leverage.	Stronger cash conversion and resilience through industry cycles.
Execution and governance	Strengthen planning, project reviews, cost visibility, internal controls, compliance and management accountability.	Predictable delivery, better risk management and stakeholder con dence.

04. SEGMENT-WISE AND PRODUCT-WISE

PERFORMANCE

Machine Division

Machine Division revenue was Rs. 2,260.52 lakh, down 26.7% from Rs. 3,084.69 lakh. Segment profit was Rs. 300.22 lakh compared with Rs. 432.76 lakh. The division remained profitable, with a segment margin of approximately 13.3%, compared with 14.0% in FY 2024-25. Lower revenue against a strong prior-year base and the timing of customer capital-expenditure decisions constrained absorption of fixed manufacturing and commercial costs.

The divisions medium-term opportunity remains anchored in specialised twisting, cabling, winding and heat-setting solutions, technical-textile applications, replacement demand, exports, automation and energy-efficient machinery. Management will emphasise disciplined quotation, order-quality assessment, milestone-based execution, export risk management, timely collections and growth in spares, retrofits and service support.

Plastic Division

Plastic Division revenue increased to Rs. 1,522.68 lakh from Rs. 900.24 lakh, reflecting the build-up of operations. The segment, however, reported a loss of Rs. 191.88 lakh compared with a profit of Rs. 19.44 lakh in FY 2024-25. The performance indicates that operating scale, yield, product mix, selling realisation and fixed-cost absorption had not yet reached the desired level. Volatility in polymer prices and competitive market conditions can also create a timing mismatch between input costs and selling

prices.

The near-term focus is on consistent production quality, higher line utilisation, lower conversion losses, broader customer approvals, improved contribution per tonne, disciplined credit selection and tighter raw-material and inventory management. Management will calibrate growth to cash generation and margin quality rather than pursuing volume without adequate returns.

05. FINANCIAL AND OPERATIONAL PERFORMANCE

Consolidated performance (Rs. in lakh, except EPS)

Particulars	FY 2025-26	FY 2024-25	Change
Revenue from operations	3,783.21	3,984.93	-5.1%
Other income	88.28	32.38	+172.6%
Total income	3,871.49	4,017.30	-3.6%
Profit before tax	113.37	462.35	-75.5%
Profit after tax	98.40	372.18	-73.6%
Basic and diluted EPS (Rs.)	0.46	1.74	-73.6%

FY 2024-25 EPS in both the consolidated and standalone tables has been restated to reflect the sub-division of each equity share of face value Rs. 10 into two equity shares of face value Rs. 5.

Standalone performance (Rs. in lakh, except EPS)

Particulars	FY 2025-26	FY 2024-25	Change
Revenue from operations	3,675.32	4,026.01	-8.7%
Other income	88.29	32.37	+172.8%
Total income	3,763.61	4,058.38	-7.3%
Profit before tax	99.11	479.63	-79.3%
Profit after tax	84.57	389.47	-78.3%
Basic and diluted EPS (Rs.)	0.40	1.82	-78.0%

Analysis of the movement in profitability

Operating revenue was lower because growth in the Plastic Division did not fully offset the reduction in Machine Division revenue.

The Plastic Divisions scale-up loss reduced consolidated segment profitability despite the Machine Division continuing to earn a positive margin.

Finance cost increased materially to Rs.

83.25 lakh from Rs. 22.23 lakh, reflecting the funding and working-capital requirements associated with the expanded operating base.

Other income increased to Rs. 88.28 lakh; however, this was insufficient to offset the decline in operating profitability and higher finance costs.

The sharp reduction in profit after tax correspondingly lowered net margin and return on net worth for the year.

Financial position and capital structure

Particulars	March 31, 2026	March 31, 2025	Movement
Total assets	4,539.75	4,325.25	+5.0%
Total equity / net worth	2,989.88	2,915.47	+2.6%
Total borrowings	594.39	821.00	-27.6%
Property, plant and equipment	2,466.25	2,553.00	-3.4%
Inventories	940.87	778.55	+20.9%
Trade receivables (current and non-current)	536.84	639.00	-16.0%
Current assets	1,639.12	1,652.00	-0.8%
Current liabilities	1,096.60	873.00	+25.6%

Total assets increased primarily because the operating asset base of the Plastic Division and working-capital deployment remained elevated. Inventory increased by 20.9%, requiring continued focus on procurement planning, stock ageing, product mix and conversion into cash. Trade receivables reduced on a closing basis. Borrowings declined by 27.6%, which is positive for leverage; however, finance costs remained high because average utilisation and the timing of repayments influence the annual charge.

Cash-flow performance

Cash flow (Rs. in lakh)	FY 2025-26	FY 2024-25	Management reading
Net cash from operating activities	646.88	546.00	Positive cash generation supported debt reduction and operational funding.
Net cash used in investing activities	(263.38)	(837.00)	Outflow moderated after the prior years heavier investment cycle.
Net cash from / (used in) financing activities	(329.25)	311.00	FY 2025-26 reflected net repayments and financing outflows.

The Company will continue to prioritise operating cash conversion, milestone-linked billing and collection in the Machine Division, tighter credit and inventory discipline in the Plastic Division, and selective capital expenditure aligned with demonstrable returns.

06. KEY FINANCIAL RATIOS AND SIGNIFICANT CHANGES

The following ratios have been computed from the audited consolidated financial statements using a consistent methodology for both periods. A change of 25% or more is treated as significant for the purpose of Schedule V to the SEBI Listing Regulations. Ratios are rounded to two decimal places; percentage changes are based on unrounded values.

Ratio / basis	FY26	FY25	Change	Explanation / management analysis
Debtors turnover Revenue / average current trade receivables	6.91x	9.15x	-24.4%	Lower revenue and higher average receivables carried into the year reduced turnover. Closing current receivables nevertheless declined.
Inventory turnover Cost of goods sold / average inventory	2.80x	2.74x	+2.2%	Broadly stable. Higher closing inventory reflects the expanded operating mix and requires continued stock and demand planning.
Interest coverage EBIT / finance cost	2.36x	21.80x	-89.2%	Significant decline due to lower operating earnings and a material increase in finance cost.
Current ratio Current assets / current liabilities	1.49x	1.89x	-21.0%	Lower because current liabilities increased while current assets remained broadly stable.
Debt-equity ratio Total borrowings / total equity	0.20x	0.28x	-29.4%	Significant improvement following repayment of borrowings and growth in net worth.
Operating profit margin EBIT / revenue from operations	5.20%	12.16%	-57.3%	Significant decline due to lower Machine Division revenue and the Plastic Divisions scale-up loss.
Net profit margin PAT / revenue from operations	2.60%	9.34%	-72.2%	Significant decline reflecting weaker operating profit and higher finance costs.
Return on net worth PAT / average total equity	3.33%	13.44%	-75.2%	Significant decline because profit after tax reduced while the average equity base increased.

Return on net worth

Return on net worth reduced from 13.44% to 3.33% because consolidated profit after tax declined from Rs. 372.18 lakh to Rs.

07. OPPORTUNITIES AND THREATS

98.40 lakh, while average shareholders equity increased. Rebuilding operating margin and improving asset productivity are therefore central to restoring returns.

OPPORTUNITIES	THREATS / CONSTRAINTS
Replacement of ageing machinery with automated, energy-efficient and digitally controlled equipment.	Cyclical and project-based machinery demand, with customer capex timing dependent on financing and end markets.
Growth in technical textiles, FIBC, ropes, carpet yarns, industrial and sewing threads and other specialised applications.	Price competition from domestic and overseas manufacturers, including standardised low-cost equipment.
Import substitution and increased preference for responsive domestic engineering partners.	Foreign exchange, freight, geopolitical, trade-policy and cross-border collection risks.
Expansion of export markets and deeper customer support through global relationships and the US subsidiary.	Volatility in metals, electronics, polymers, energy and other input costs and limited ability to pass through changes immediately.
After-sales service, spares, retrofits and process optimisation as recurring customer-value opportunities.	Execution, warranty, quality and delivery risks inherent in customised machinery and new-product scale-up.
Higher CPP film utilisation, customer approvals and value-added product mix in flexible packaging.	Working-capital intensity, customer credit risk and the possibility of slower-than-planned Plastic Division ramp-up.

08. PRINCIPAL RISKS AND MANAGEMENT RESPONSE

Risk management is embedded in business planning, budgeting, project reviews, procurement, credit control, quality systems, internal audit and Board-level oversight. The following table summarises the principal business risks; it is not exhaustive and the relative significance of individual risks may change over time.

Risk	Potential impact	Key management response
Order-cycle and demand risk	Delayed or cancelled capital expenditure can affect revenue visibility and fixed- cost absorption.	Diversify applications and geographies; strengthen funnel reviews; secure advances and milestones; grow service and spares.
Plastic Division ramp-up risk	Low utilisation, yield losses, weak realisations or delayed approvals may prolong losses and consume cash.	Daily operating metrics; quality and yield improvement; disciplined product/customer mix; calibrated volumes and credit.
Raw-material and supply-chain risk	Price volatility or component shortages may compress margins or delay delivery.	Approved vendors; alternate sourcing; purchase planning; selective inventory buffers; contractual pass-through where feasible.
Execution, quality and warranty risk	Custom engineering may result in cost overruns, delays, rejection or warranty expenditure.	Design reviews; stage-gate project control; inspection and testing; root-cause analysis; installation and service protocols.
Foreign exchange and geopolitical risk	Currency movements, trade restrictions, freight disruption or political instability may affect exports and collections.	Market diversification; prudent payment terms; exposure monitoring; hedging where commercially appropriate.
Credit and working- capital risk	Slow collections and inventory build-up can increase borrowings and finance cost.	Customer credit appraisal; ageing reviews; milestone billing; collection ownership; inventory norms and cash forecasts.
Technology and obsolescence risk	Rapid automation and customer expectations may reduce competitiveness of existing products.	Application-led R&D; customer feedback; modular controls; continuous product enhancement and talent development.
People, safety and continuity risk	Loss of critical skills, workplace incidents or operational disruption may affect execution.	Succession and cross-training; preventive maintenance; safety training, PPE, emergency planning and insurance.
Regulatory, compliance and cyber risk	Non-compliance, data loss or system disruption may cause penalties, business interruption or reputational impact.	Compliance calendar; maker-checker controls; access management; backups; periodic reviews and Audit Committee oversight.

09. OUTLOOK AND MANAGEMENT PRIORITIES

The long-term opportunity in specialised textile machinery remains supported by automation, energy efficiency, technical textiles, export demand and replacement of ageing equipment. The near-term environment, however, may remain uneven because customer capital expenditure is sensitive to utilisation, financing, raw-material economics and end-market visibility. In the Plastic Division, demand opportunities coexist with intense competition and margin volatility. Accordingly, management will pursue growth with an emphasis on contribution, cash conversion and return on capital.

BUSINESS PRIORITY	FY 2026-27 MANAGEMENT AGENDA
Machine Division	Improve order conversion and execution; focus on specialised and value- added applications; deepen exports; increase service, spares and retrofit revenue; protect pricing and collections.
Plastic Division	Raise utilisation and consistency; reduce process loss; secure customer approvals; improve contribution per tonne; align production with demand and credit quality.
Margins and productivity	Tighten project costing, procurement, energy, manpower deployment and overheads; increase accountability through segment-level performance reviews.
Working capital and cash	Reduce collection days, manage inventory ageing and procurement cycles, align payment terms, maintain rolling cash forecasts and avoid low-return working-capital deployment.
Capital allocation	Prioritise safety, reliability, customer commitments and demonstrable returns; maintain prudent leverage and evaluate investments against cash payback and strategic relevance.
People, technology and governance	Develop engineering and operational talent; strengthen R&D and digital capability; maintain robust controls, compliance, succession planning and stakeholder communication.

Outlook discipline

The Company has not set out numerical revenue or profit guidance in this MD&A. Actual performance will depend on order conversion, execution schedules, customer demand, raw-material prices, utilisation, product mix, nance costs, working-capital cycles and external economic conditions

10. INTERNAL CONTROLS, HUMAN RESOURCES, SAFETY AND INNOVATION

Internal financial controls and governance

The Company has an internal control framework designed to provide reasonable assurance regarding orderly and efficient operations, safeguarding of assets, prevention and detection of fraud and error, accuracy and completeness of accounting records, timely preparation of reliable financial information and compliance with applicable laws and policies. The framework includes defined authority levels, segregation of duties, maker-checker controls, budget and variance reviews, procurement and payment controls, inventory records, receivable monitoring, project-cost reviews, fixed-asset controls and periodic reconciliations.

Internal audit reviews are planned on a risk-based basis and material observations, management responses and corrective actions are placed before the Audit Committee. The Audit Committee monitors the adequacy of controls and the status of agreed actions. Management continues to strengthen data quality, system access, documentation, inventory visibility, project costing, credit control and cash-flow forecasting as the operating model becomes more diversified.

Human resources and industrial relations

People are central to Meeras engineering, manufacturing, application development, sales and service capabilities. The Companys team comprised more than 100 skilled professionals and personnel during FY 2025-26. The focus remained on recruitment for critical roles, on-the-job learning, cross-functional exposure, technical training, performance accountability, leadership development and retention of specialised engineering and operating knowledge.

Employee relations remained constructive and there was no material disruption to operations arising from industrial relations during the year. Management will continue to strengthen role clarity, productivity measurement, succession planning, shop-floor capability, employee communication and a culture of quality, safety and customer responsiveness.

Health, safety and environment

The Companys operations involve machine

11. CAUTIONARY STATEMENT

This MD&A contains forward-looking statements describing the Companys objectives, expectations, estimates, strategies, outlook and anticipated results. Such statements are based on current assumptions and information available to management and are subject to risks, uncertainties and other factors, many of which are beyond the Companys control. Actual results may differ materially due to changes in economic conditions, customer demand, order execution, raw-material and energy prices, exchange rates, interest rates, competition, technology, regulations, tools, moving equipment, electrical systems, thermal processes, polymers and material handling. Safety priorities include preventive maintenance, machine guarding, permit and lockout practices where applicable, use of personal protective equipment, training, housekeeping, fire protection, emergency preparedness and incident review. Environmental focus areas include energy efficiency, material yield, waste segregation, responsible disposal and compliance with consent and operating requirements.

Research, development and innovation

Meeras DSIR-recognised R&D capability supports customised machinery, automation, energy efficiency, remote diagnostics and high-performance yarn applications, with projects selected for customer value and commercial returns.

geopolitical developments, logistics, utilisation, product mix, credit conditions and other risks described in this report or elsewhere in the Annual Report.

The Company undertakes no obligation to publicly update or revise any forward-looking statement to reflect subsequent events or circumstances, except as may be required under applicable law. Readers are advised to consider this report together with the audited financial statements, notes to accounts, Boards Report, corporate governance disclosures and risk factors.

Place: Surat	For and on behalf of the Board of Directors
Date: August 31, 2026	Dharmesh V. Desai
	Chairman and Managing Director
	DIN: 00292502