Omfurn India Ltd Management Discussions

ANNEXURE-B TO DIRECTORS REPORT

A) Industry Structure and Developments:

The Indian interior solutions and modular furniture industry continues to evolve, supported by urbanisation, real estate development, premiumisation of residential and commercial spaces, and increasing preference for organised, quality-driven interior solutions. Demand is increasingly being shaped by customers seeking customised, functional, durable and aesthetically differentiated products.

During FY 2025-26, the sector continued to benefit from activity across residential real estate, commercial developments, hospitality and institutional projects. The growing adoption of modular solutions and the increasing requirement for specialised door products, including fire-rated and acoustic solutions, provide additional avenues for organised manufacturers.

Within this environment, Omfurn India Limited continued to strengthen its position as an integrated interior solutions provider across wooden and metal doors, modular furniture, wardrobes, vanities and related interior solutions. The Companys manufacturing capabilities, design expertise and established customer relationships provide a strong platform for sustainable growth.

Omfurn India Limited is an integrated provider of modular furniture, doors and interior solutions, offering design, manufacturing and installation capabilities. The Company serves customers across real estate, hospitality, commercial and institutional segments.

The commissioning and commercialisation of the Companys metal door facility represents an important step in broadening the product portfolio. During FY 2025-26, the Company progressed this vertical further, including obtaining relevant product test certifications, enabling it to pursue a wider range of projects and customers.

The Company continues to focus on strengthening its core wooden door business while expanding metal doors and modular furniture, thereby creating a diversified product platform and increasing opportunities for cross-selling to existing customers.

FY 2025-26 was a year of operational consolidation, improved profitability and stronger execution momentum, particularly during the second half of the year.

Revenue from Operations stood at 86.41 crore, compared with 84.13 crore in FY 2024-25, representing growth of approximately 2.7%. EBITDA increased to approximately 13.29 crore from 12.80 crore, representing growth of approximately 3.8%. EBITDA margin improved to approximately 15.4% from 15.2% in the previous year. Profit After Tax stood at 6.30 crore compared with 6.43 crore in FY 2024-25. While PAT remained broadly stable, operating profitability improved meaningfully during the year. The second half of FY 2025-26 witnessed a significant acceleration in business activity, supported by improved execution and conversion of the Companys project pipeline.

As at March 31, 2026, the Company had a confirmed order book of approximately 142 crore to be executed over the next 12 months. The order book comprised approximately 107 crore of wooden door orders, 13 crore of metal door orders, 19 crore of modular furniture orders and 3 crore of interior orders, providing encouraging revenue visibility for FY 2026-27.

Omfurns manufacturing infrastructure continues to be a key competitive strength. The Company operates facilities supported by CNC woodworking machinery, automated finishing systems and precision fabrication capabilities, enabling execution of customised and large-scale projects.

During FY 2025-26, the Company continued to focus on technology upgradation, process standardisation and operational efficiency. SAP-based enterprise systems support greater transparency in operational and financial monitoring, while the in-house design and R&D capabilities support development and refinement of products including fire-rated and acoustic doors, modular wardrobes and vanities.

The Company also focused on improving manufacturing and project execution processes, including faster delivery timelines, optimisation of factory-level inventory and implementation of standard operating procedures.

People remain an important pillar of Omfurns operating model. The Company continues to foster a culture of teamwork, accountability, learning and execution excellence. Training and skill development remain focused on manufacturing techniques, project execution, quality standards and workplace safety.

Employee welfare and engagement continue to receive due attention. The Company maintains appropriate occupational health and safety practices, supported by its ISO 45001 certification. Industrial relations remained cordial during FY 2025-26.

Sustainability remains an integral part of Omfurns operating philosophy. The Company continues to maintain certifications including ISO 9001 for Quality, ISO 14001 for Environment and ISO 45001 for Health & Safety, along with its Green Building certification.

During FY 2025-26, the Company continued its focus on energy efficiency, solar power usage, waste minimisation and sustainable sourcing. These initiatives are aimed at reducing environmental impact while improving operational efficiency and strengthening stakeholder confidence.

• Established brand with more than two decades of industry experience.
• Diversified product portfolio comprising wooden doors, metal doors and modular furniture/interior solutions.
• Confirmed order book of approximately 142 crore as at March 31, 2026, providing revenue visibility.
• Established relationships with real estate and other institutional customers.
• Modern manufacturing infrastructure and in-house design capabilities.
• ISO and Green Building certifications supporting quality, environmental and safety standards.

• Exposure to cyclical sectors, particularly real estate and hospitality.
• Working-capital requirements inherent in a project-driven business model.
• International market presence remains relatively limited.
• Execution of large projects requires continued focus on working-capital and project management.

• Continued growth in organised interior and modular solutions in India.
• Increasing adoption of modular and sustainable furniture solutions.
• Significant opportunity to scale the metal door vertical, particularly fire-rated and acoustic doors.
• Deeper engagement with leading real estate developers, hospitality companies and institutional customers.
• Potential to develop export opportunities over the medium term.

• Volatility in raw material prices and input costs.
• Competition from organised and unorganised players.
• Execution and working-capital risks associated with large projects.
• Cyclical fluctuations in real estate, hospitality and construction activity.

The Company enters FY 2026-27 with a stronger operating platform and encouraging revenue visibility. The confirmed order book of approximately 142 crore as at March 31, 2026 provides a meaningful base for the coming year, while the acceleration witnessed in the second half of FY 2025-26 provides confidence in improving execution momentum.

• Scaling the metal door vertical and increasing its contribution to revenues.
• Strengthening the core wooden door business and deepening relationships with major real estate developers.
• Expanding modular furniture and turnkey interior opportunities.
• Improving manufacturing productivity, delivery timelines and working-capital efficiency.
• Continuing investments in automation, digital systems and process standardisation.
• Maintaining focus on cost competitiveness, quality and customer service.
• Exploring new geographies and selective export opportunities.

Our Mission is to achieve our corporate objectives and goals by offering world-class furniture and interior solutions with innovative designs based on price, quality and service. Our Vision is to create a Company that consistently delivers quality products with a focus and commitment towards total customer satisfaction, so that we remain a benchmark in the furniture industry.

Your Company continues to maintain a progressive growth outlook. The initiatives undertaken towards technology upgradation, reducing overheads and finance costs, improving operating parameters, optimising working capital and strengthening product capabilities are expected to support the Company in addressing the opportunities and challenges ahead.

Omfurn operates in industries closely linked to real estate, hospitality, commercial development and construction activity, which may be subject to cyclical variations. Key risks include fluctuations in raw material prices, supply-chain disruptions, competitive pricing pressures, project execution risks and working-capital requirements.

The Company seeks to mitigate these risks through diversified product offerings, strategic vendor relationships, established customer relationships, process improvements, strong project execution capabilities and prudent financial management. During FY 2025-26, the Company also transitioned its fund-based and non-fund-based banking facilities from Union Bank of India to ICICI Bank, with the objective of improving financing efficiency and releasing working capital otherwise deployed towards bank guarantee margins.

The Company has internal control systems commensurate with the size and nature of its business. The Company has engaged an independent Chartered Accountant to conduct internal audits and review the adequacy and effectiveness of accounting, reporting and internal controls processes. The internal control framework is reviewed periodically and necessary measures are taken to strengthen the systems as required.

Internal audits are conducted at regular intervals and the efficacy of internal controls is periodically tested. Internal control over financial reporting is also subject to review by the statutory auditors. The Audit Committee interacts with the Statutory Auditors, Internal Auditors and Management on matters relating to financial reporting, risk management and internal controls.

FY 2025-26 was a year of operational strengthening and improved profitability for Omfurn India Limited. Revenue from operations increased to 86.41 crore, EBITDA improved to approximately 13.29 crore with a margin of approximately 15.4%, and the Company closed the year with a confirmed order book of approximately 142 crore. The Company also progressed its metal door vertical, strengthened its product portfolio, improved operating processes and continued to invest in technology and capabilities.

With a diversified product portfolio, established customer relationships, modern manufacturing infrastructure and a healthy order pipeline, the Company is focused on delivering sustainable growth and creating long-term value for its stakeholders.

Statements in the Boards Report and the Management Discussion & Analysis that describe the Companys objectives, expectations, or forecasts may be considered forward-looking in accordance with applicable securities laws and regulations. Actual results may differ materially from those expressed or implied in such statements. Factors that could influence the Companys operations include domestic and global demand, selling prices, availability and cost of inputs, supply-chain conditions, changes in Government regulations and tax laws, economic developments, competition, project execution, litigation and industrial relations.

These factors are subject to uncertainties and risks, and the Company does not assume any obligation to update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of the report. Stakeholders and investors are advised to exercise caution and rely on their own analysis and judgment when evaluating the Companys objectives, expectations and forecasts.