Olympia Industries Ltd Management Discussions

The Directors of Olympia Industries Limited ("the Company") pleased to present the Management Discussion Analysis Report for the year ended 31March, 2026.

1. COMPANY OVERVIEW & OUTLOOK

Olympia Industries Limited has evolved into a comprehensive trade and distribution platform offering end-to-end e-commerce management, inventory control, marketing, and brand management services. The Company currently empowers 100+ brands across their sales and distribution journey and has established itself as a trusted partner for both domestic and international businesses seeking access to the Indian market. With a robust distribution network spanning across India, the Company continues to create value for its stakeholders while positively impacting consumers nationwide.

The Company continues to deliver value-added services including marketing, repackaging, customized solutions, and end-to-end brand management across multiple sales channels including General Trade & Modern Trade, CSD, Quick commerce, E-Commerce, hotel amenities, corporate selling, corporate gifting and other gifting channels. Building on its established expertise under B2B & B2C models, the Company has further strengthened its portfolio of international gourmet and premium brands and continues to actively pursue strategic partnerships with leading global brands operating in niche and high-growth categories.

The rapid growth of digital commerce and the emergence of quick commerce platforms such as Blinkit, Zepto, Swiggy Instamart, BigBasket Now and Flipkart Minutes have significantly transformed consumer purchasing behaviour by enabling near-instant delivery of products. Recognizing this evolving market landscape, the Company has strategically expanded its presence in the quick commerce segment by leveraging its established warehousing infrastructure, supply chain capabilities, distribution network and technology-driven operational framework. The Company remains committed to continuously enhancing its logistics capabilities, expanding channel reach and adapting toemerging market trends to capitalize on new growth opportunities.

The Company operates across a diverse range of product categories including Food & Beverages, Baby Care, Domestic Appliances, Electronics, Healthcare, Home & Kitchen Appliances, Personal Care Appliances, Pet Care Products and other consumer-focused segments. This diversified portfolio enables the Company to cater to evolving consumer preferences while mitigating concentration risks associated with any single product category. The Company has its own private brands such as "UMANAC" under which the Company is currently selling products in 30+ ranges in the categories of Organic Products, Health Supplements and various food products. Additionally, under the brand "PETOSKA", the Company markets a broad portfolio of pet care products including pet foods, treats, grooming products, and hygiene solutions. These brands continue to strengthen the Companys presence in high-growth consumer segments and contribute towards enhancing brand equity and profitability. The Company also holds exclusive distributorship rights of several international brands in India contributing to increased profit opportunities.

Going forward, the Company remains focused on expanding its product portfolio, strengthening its private label brands, deepening its presence across digital and offline distribution channels, and enhancing operational efficiencies. With increasing consumer demand, growing penetration of e-commerce and quick commerce platforms, and continued emphasis on premium and specialty products, the Company is well-positioned to capitalize on emerging opportunities and deliver sustainable long-term value to its stakeholders.

2. INDUSTRY STRUCTURE AND DEVELOPMENTS

The Indian e-commerce industry continued to witness robust growth during the year, driven by increasing internet penetration, widespread smartphone adoption, affordable data services, and growing acceptance of digital payment systems. While metropolitan cities continue to contribute significantly to online retail sales, the next phase of growth is increasingly being driven by consumers in Tier-ll and Tier-Ill cities, supported by improving digital infrastructure and the availability of regional language interfaces.

Consumer preferences are rapidly evolving towards convenience, speed, and personalized shopping experiences. The growing influence of social media, content-driven marketing, and influencer-led campaigns has transformed product discovery and purchasing behaviour, particularly among younger consumers. Businesses are increasingly leveraging data analytics and artificial intelligence to enhance customer engagement, optimize inventory management, and improve operational efficiencies.

The industry has also witnessed the rapid emergence of quick commerce platforms such as Blinkit, Zepto, Swiggy Instamart, Big Basket Now and Flipkart Minutes, which have significantly altered consumerexpectations regarding delivery timelines and convenience. This development has created new opportunities for brands, distributors and supply chain partners with strong warehousing and distribution capabilities.

The Governments continued focus on strengthening digital infrastructure through initiatives such as BharatNet, expansion of 5G connectivity and development of the digital commerce ecosystem is expected to further support the growth of the sector. With its diversified product portfolio, established distribution network, growing private label brands and expanding presence across e-commerce and quick commerce channels, the Company remains well-positioned to capitalize on the opportunities arising from these industry developments.

3. OPPORTUNITIES:

The Indian e-commerce and retail distribution landscape continues to present significant growth opportunities driven by increasing digital adoption, changing consumer preferences, technological advancements and the expansion of new retail channels. With its diversified product portfolio, established distribution network, strong supply chain capabilities and growing presence across e-commerce, quick commerce and traditional trade channels, the Company is well-positioned to capitalize on the following opportunities:

Expansion of E-Commerce and Quick Commerce

The continued growth of e-commerce and the rapid expansion of quick commerce platforms such as Blinkit, Zepto, Swiggy Instamart, BigBasket Now and Flipkart Minutes are creating significant opportunities for brands and distributors. Increasing consumer preference for convenience, instant deliveries and online purchasing is expected to support long-term industry growth.

Growing Digital Adoption in Emerging Markets

Increasing internet penetration, smartphone adoption and digital payment usage across Tier-ll and Tier-Ill cities are expanding the addressable market for e-commerce businesses. Government initiatives such as BharatNet and expansion of 5G infrastructure are expected to further accelerate digital adoption.

Social Commerce and Influencer Marketing

Social media platforms have evolved into powerful commerce enablers, significantly influencing consumer purchasing behavior and reshaping the digital retail landscape. Platforms such as Instagram, Facebook, YouTube,

and emerging short-video applications such as Instagram reels, Youtube shorts etc., are no longer limited to content sharing; they now function as integrated shopping ecosystems that facilitate product discovery, evaluation, and purchase within a single interface.

Influencer-driven marketing has become a central component of social commerce strategies. Influencers, with their established credibility and targeted audience base, play a critical role in shaping consumer preferences and driving purchase decisions. Product endorsements, reviews, tutorials, and unboxing experiences shared by influencers create authentic engagement and foster trust, thereby increasing conversion rates.

Technology-Driven Customer Experience

Advancements in Artificial Intelligence (Al), machine learning and data analytics are enabling businesses to offer personalized product recommendations, automated customer support and efficient inventory management. These technologies present opportunities to enhance customerengagement and operational efficiency.

Omnichannel Retailing

Consumers increasingly prefer a seamless shopping experience across multiple channels, including marketplaces, brand websites and offline stores. The integration of online and offline channels presents opportunities to improve customer reach, enhance brand visibility and strengthen customer loyalty.

Expansion of Private Labels and Strategic Brand Partnerships

Growing demand for premium, imported and niche products presents opportunities for expansion of the Companys private label brands and strategic partnerships with international brands. Exclusive distribution arrangements and category diversification can further support revenue growth and market penetration.

Sustainability and Responsible Consumption

Consumers are increasingly favouring environmentally responsible products, sustainable packaging and ethical sourcing practices. Businesses that align with these evolving preferences can strengthen brand reputation, improve customer retention and create long-term value.

4. THREATS

While the Indian e-commerce and retail distribution sector continues to offer significant growth opportunities, it is also exposed to various operational and market-related challenges. Increasing competition, evolving consumer preferences, supply chain disruptions, technological risks and regulatory changes may impact business performance. The Company remains focused on mitigating these challenges through strategic planning, operational efficiencies, technology adoption and a robust compliance framework.

Intense MarketCompetition

The Indian e-commerce and retail distribution sector remains highly competitive with the continued expansion of marketplaces, quick commerce platforms and organized retail players. The Company mitigatesthese risks through its diversified product portfolio, exclusive brand partnerships, strong distribution network and value-added service offerings.

Changing Consumer Preferences

Consumer preferences and purchasing patterns continue to evolve rapidly, requiring businesses to remain agile

and responsive to market trends. The Company regularly evaluates consumer demand, expands its product offerings and strengthens its brand portfolio to address changing customer requirements.

Supply Chain and Logistics Challenges

Disruptions in sourcing, transportation and distribution networks may impact product availability and operational efficiency. To mitigate this risk, the Company has implemented robust supply chain management practices and remains vigilant by monitoring and responding to shifts in the supply chain landscape The Company leverages its established warehousing infrastructure, inventory management systems and distribution capabilities to ensure timely product availability and service continuity.

Regulatory and ComplianceChanges

The e-commerce and retail sectors are subject to evolving regulatory requirements relating to product compliance, consumer protection, data privacy and taxation. The Company maintains a proactive compliance framework and continuously monitors regulatory developments to ensure timely compliance with applicable laws and regulations.

5. SEGMENT WISE PERFORMANCE

The Company is reporting in only one reportable segment viz. trading.

6. RISKS & CONCERNS

The Board of Directors of the Company oversee the implementation and monitoring of the Companys risk management system, in accordance with the Companys Risk Management Policy.

The Board of Directors reviews the Companys business risks and formulates strategies to mitigate those risks. The Senior Management team, led by the Managing Director, is responsible for proactively managing risks with appropriate mitigation measures and ensuring their implementation thereof.

7. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has established a comprehensive internal control framework, underpinned by a structured internal audit process, designed to safeguard organizational assets, ensure the accuracy and reliability of financial and operational data, and support timely logistical support. Controls are implemented through well-defined systems, documented policies, delegated authorities, and rigorous management oversight.

Similarly, we maintain a system of monthly review of the business as a key operational control, wherein the performance of departments is reviewed and corrective action is initiated. Accountability is established for implementing the projects on time and within the approved budget.

The Audit Committee reviews the quarterly, half-yearly, and annual financial statements of the Company. The Companys Internal Financial Control Framework undergoes periodic evaluation by Internal Auditors, with findings and recommendations reported to the Audit Committee as required. Based on the report of internal audit function, process owners undertake corrective action in their respective areas and thereby strengthen the controls.

8. FINANCIAL PERFORMANCE W.R.T. OPERATIONAL PERFORMANCE

The Companys performance during the financial year ended March 31, 2026 as compared to the previous financial year is summarized below:

The turnover of the Company has increased to Rs. 31475.76 Lakhs from Rs. 28247.06 Lakhs in the previous year. Net profit from operations stood at Rs. 180.34 Lakhs as compared to Rs. 129.55 Lakhs in the previous year. However, the profit before Interest, Depreciation & tax has increased to Rs. 798.16 Lakhs from Rs. 790.02 Lakhs and profit before tax has improved from Rs. 176.45 Lakhs to Rs. 239.19 Lakhs.

In the current year, the Company endeavors to improve its performance in view of various steps taken for improvement.

Key Financial Ratios:

Explanation for ratios with movement of >25%:

• Improvement in the Operating Profit of the Company is on account of reduction in Cost of Goods Sold.

• Decrease in the Debt Equity ratio of the Company is owing to decrease in debt utilization due to better operational efficiency.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBEROF PEOPLE EMPLOYED:

Human capital remains central to the Companys continued growth and operational excellence. The Company is committed to creating a work environment that is safe, inclusive, and conducive to individual and professional development. Employee welfare is given primacy through structured policies, grievance redressal mechanisms and continuous engagement initiatives.

The Companys talent management strategy remains focused on identifying, developing, and retaining high- potential talent through well-defined career progression frameworks, competitive and performance-linked compensation structures, and a culture of continuous learning. The Company firmly believes that sustainable business success is driven by its people and continues to invest in developing capabilities that support long term growth, resilience and global competitiveness. The Company places significant emphasis on building a customer- oriented organizational culture and on reinforcing service quality standards across all functions. Industrial relations remain cordial, and the Management is committed to maintaining a harmonious and productive work environment. As on 31st March, 2026, the number of permanent employees in the Company is 145.

DISCLOSURE OF ACCOUNTING TREATMENT

There is no deviation in following the treatment prescribed in any Accounting Standards in preparation of financial statements for the year 2025-26.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis describing the objectives, projections, estimates and expectations of the Company, may be forward-looking statements within the meaning of applicable laws and regulations. Actual results might differ substantially or materially from those expressed or implied. Important factors that could make a difference to the Companys operations include, among others, economic conditions affecting demand/supply, price conditions in the domestic and overseas markets in which the Company operates, changes in Government regulations, tax laws and other statutes and incidental factors.