This Management Discussion and Analysis (MDA) Report forms an integral part of the Boards Report and provides insights into the Companys performance and strategic direction during the FY 2025-26. It covers the managements views on the economic environment, industry landscape, operational performance, risks, opportunities, internal controls, and other key developments. This report should be read in conjunction with the Companys audited financial statements, notes thereto, and other relevant information provided in the Annual Report.
The Indian economy delivered another year of robust performance in FY 2025-26, reaffirming its position among the worlds fastest-growing major economies globally despite an increasingly uncertain external environment. As per the Provisional Estimates released by the Ministry of Statistics and Programme Implementation (MoSPI), Indias Real Gross Domestic Product (GDP) grew by 7.7% during the year, compared with the revised growth of 7.1% in FY 2024-25. Growth remained broad-based, supported by resilient domestic demand, sustained government capital expenditure, improving private investments, and strong performance across the manufacturing, construction and services sectors.
The manufacturing sector recorded a robust growth of 10.7%, while Gross Fixed Capital Formation (GCFC) increased by 8.2%, reflecting healthy investment activity driven by improving corporate balance sheets, favourable policy initiatives, expanding capacity utilisation and continued infrastructure development. Domestic consumption remained resilient throughout the year, supported by strengthening employment conditions, healthy credit growth and steady urban and rural demand.
The global economy, however, remained challenged by heightened geopolitical tensions and slowing economic activity. The International Monetary Fund (IMF) projects global growth to moderate to around 3.0% in calendar year 2026, reflecting the impact of geopolitical conflicts, evolving trade policies and tighter global financial conditions. Escalating instability in the Middle East disrupted global trade routes and supply chains, resulting in elevated freight costs, supply chain bottlenecks and increased volatility in energy markets, especially during the last quarter of FY26. Rising protectionist measures, tariff uncertainties and weaker industrial activity further moderated global trade, affecting both advanced and emerging economies.
The United States witnessed moderation in economic growth amid tighter financial conditions and trade-related uncertainties, while the Euro Area to experience subdued industrial production and weak consumer demand despite easing inflationary pressures. Chinas economic growth remained constrained by structural challenges in the real estate sector, subdued domestic consumption and softer export demand. Against this backdrop, India demonstrated remarkable resilience, supported by its large domestic market, policy stability, expanding infrastructure investments and improving manufacturing competitiveness.
Indias macroeconomic fundamentals remained strong throughout the year. Retail inflation moderated significantly, remaining broadly within the RBIs target range, which allowed the RBI to adopt a calibrated, growth-supportive monetary stance while maintaining financial stability. The Government remained committed to its fiscal consolidation roadmap while sustaining productive capital expenditure across infrastructure, transportation, logistics, renewable energy and manufacturing. The current account deficit stayed comfortable, supported by resilient services exports and remittances, while forex reserves and the Rupee remained relatively stable despite global volatility.
Gross Value Added (GVA) growth remained broad-based across manufacturing, construction, financial services and public administration. Continued implementation of structural reforms, including the Production Linked Incentive (PLI) Schemes, the Make in India initiative, digitalisation, logistics improvements and ease of doing business measures, further strengthened Indias industrial ecosystem and investment climate. Nevertheless, export-oriented sectors continued to face challenges arising from weaker global demand, volatile commodity prices, elevated logistics costs and increasing trade barriers.
Looking ahead, Indias economic outlook remains favourable, supported by resilient domestic consumption, favourable demographics, rising infrastructure investments, expanding manufacturing capabilities and continued structural reforms.
While geopolitical uncertainties, global trade fragmentation, commodity price volatility and evolving trade policies may continue to pose external risks.
Below table details our key product segments with industries and customers they cater to:
| Product Segment | Industries / End Customers |
| Ceramic Raw Materials | Metals & other related industries, Refractories, Foundries, Abrasives |
| Refractories | Steel, Metals & other related industries, Cement, Power, Non-Ferrous Metal Industries |
| Speciality Ceramics | Oil & Gas |
Indias steel industry maintained strong growth momentum during FY 2025-26, reinforcing its position as the worlds second-largest steel producer. Crude steel production increased by over 10% year-on-year to approximately 168 million tonnes, while finished steel consumption grew by around 7-8% to reach 164 million tonnes, supported by sustained investments in infrastructure, construction, railways, automotive, engineering and capital goods sectors. Domestic steelmaking capacity expanded to nearly 220 million tonnes per annum (MTPA), keeping the industry on track towards the National Steel Policy target of 300 MTPA by 2030.
The continued expansion of steel production directly supported demand for refractory products and allied consumables. Growth in induction furnace (IF) and electric arc furnace (EAF) steelmaking capacities, together with increasing furnace utilisation, continued to generate stable demand for refractory bricks, monolithics, castables and ramming mass. As refractory consumption is largely linked to steel production volumes and furnace operating cycles, the long-term demand outlook remains favourable.
However, the refractory industry continued to face challenges arising from dependence on imported raw materials such as fused alumina, calcined alumina, magnesia, microsilica and graphite, with China remaining the dominant global supplier. Volatility in alumina prices, elevated energy costs and fluctuations in international freight rates continued to exert pressure on manufacturing costs. Consequently, the industry remained focused on raw material diversification, backward integration, process optimisation, recycling of spent refractories, localisation of critical inputs and sustainability initiatives to enhance long-term competitiveness.
The Ceramic Raw Materials segment continued to witness healthy demand during FY 2025-26, supported by growth in the refractory, foundry, abrasive and metallurgical industries. Expansion of steelmaking and casting capacities, particularly across eastern and western India, continued to drive demand for value-added ceramic minerals and processed raw materials. Rising quality requirements from end-user industries accelerated the need of mineral processing improvements and product customisations, with industry participants continuing to invest in technology upgrades and resource optimisation to reduce dependency on imported raw materials.
With increasing emphasis on localisation, mineral value addition and sustainable mining practices, the domestic ceramic raw materials industry is expected to benefit from Indias expanding manufacturing base and continued growth across steel, refractories and engineering industries.
The global oil & gas industry experienced a mixed operating environment during FY 2025-26. While geopolitical tensions and regional conflicts led to short-term disruptions in energy markets and project execution, higher crude oil prices encouraged upstream investment by several international oil and gas companies. Operators continued to focus on improving well productivity, enhancing reservoir recovery and extending the productive life of existing assets.
The global proppants market continued to evolve with increasing adoption of longer horizontal wells, higher proppant loading per stage and improved completion technologies. Although natural frac sand continued to dominate overall consumption due to its cost advantage, demand for premium ceramic and ultra-high strength ceramic proppants remained strong for high-pressure, high-temperature and deep unconventional reservoirs where superior strength, conductivity and durability are critical for long-term well performance.
Demand for ceramic proppants remained particularly attractive across selected projects in the Middle East, Africa and Asia, where increasingly complex reservoir conditions favour high-performance ceramic solutions over conventional sand-based alternatives. At the same time, growing focus on operational efficiency, reservoir optimisation and enhanced hydrocarbon recovery is expected to support long-term adoption of advanced ceramic proppants.
As Indias leading manufacturer of ceramic proppants, the Company remains well positioned to capitalise on emerging opportunities through its integrated manufacturing capabilities, product development expertise, customised solutions and expanding export presence.
Your Company continues to operate in a competitive and evolving industrial landscape that presents significant opportunities alongside emerging challenges. Indias continued infrastructure development, expanding manufacturing sector, increasing steel production capacity and favourable policy initiatives provide a strong foundation for long-term growth across the Companys core businesses, supported by continued government policy initiatives and rising investment in roads, railways, renewable energy and urban infrastructure.
Growing adoption of modern steelmaking technologies, expansion of foundry and engineering industries, and increasing focus on localisation and import substitution present attractive opportunities for the Companys refractory and ceramic raw materials businesses. Continued investment in research and development, product innovation and customer-specific solutions remain critical for developing high-performance, energy-efficient products that strengthen long-term customer relationships.
In the Ceramic Raw Materials segment, opportunities continue to emerge through value addition, development of customised mineral solutions and increasing substitution of imported raw materials. Rising quality standards across end-user industries are expected to support demand for higher value-added and technically superior products.
The Specialty Ceramics business continues to offer significant long-term growth potential, with the Company well positioned to benefit from the gradual recovery in global upstream oil and gas investments, particularly in high-pressure and high-temperature applications where ceramic proppants offer superior performance over conventional sand-based alternatives.
At the same time, the Company operates in an environment of increasing global competition, commodity and freight-cost volatility, import dependence, evolving trade policies and rising sustainability and compliance requirements - detailed further under Risks and Concerns. The Company remains focused on mitigating these through product diversification, operational excellence and expansion into new domestic and international markets, backed by its diversified portfolio and strong customer relationships.
The Company operates in industries that are influenced by global economic conditions, commodity price movements, geopolitical developments, regulatory changes and evolving customer demand. While the long-term outlook for the Companys core businesses remains favourable, several external and operational risks continue to require close monitoring and proactive mitigation.
The Indian refractory industry continues to remain dependent on imports for a significant proportion of critical raw materials, including fused alumina, calcined alumina, low ferric bauxite, magnesia, microsilica and graphite, with China continuing to be the dominant global supplier. Volatility in raw material prices, energy costs, freight rates and foreign exchange movements can significantly impact manufacturing costs and operating margins. In addition, pricing pressure from Chinese and other international manufacturers continues to intensify competition in standard-grade refractory products.
The refractory industry also remains closely linked to the performance of the domestic steel sector, which accounts for a substantial share of refractory consumption. Any slowdown in steel production, delays in infrastructure spending or moderation in industrial activity could adversely impact demand for refractory products. Furthermore, increasing environmental regulations, and changing customer expectations regarding sustainability are expected to require continued investments in cleaner technologies, and resource efficiency.
The Ceramic Raw Materials business is exposed to risks arising from fluctuations in mineral availability, quality variations in natural resources, mining regulations, logistics constraints and volatility in energy and transportation costs, along with continued dependence on imported raw materials for certain specialised products.
The Specialty Ceramics business is influenced by global exploration and production activities in the oil and gas sector, which are inherently cyclical and sensitive to movements in crude oil and natural gas prices, capital expenditure by energy companies and broader macroeconomic conditions. Competition from lower-cost sand-based alternatives, along with geopolitical developments and supply chain disruptions, may impact export demand and international competitiveness.
Broader macroeconomic risks, including global trade fragmentation, evolving tariff regimes, inflationary pressures, higher interest rates in certain economies, commodity price volatility and slower-than-expected global economic growth, could influence demand across the Companys operating segments. Climate-related risks, increasing focus on decarbonisation and evolving ESG expectations may also require additional investments in sustainable manufacturing processes.
The Company continues to mitigate these risks through strategic sourcing of raw materials, technology upgradation, product innovation, expansion into higher value-added products and diversification of both customer base and export markets. Continued focus on research and development, supply chain resilience and prudent capital allocation will remain central to strengthening the Companys long-term competitiveness.
The global economic environment is expected to remain dynamic over the near to medium term, influenced by evolving geopolitical developments, changing trade policies, commodity price volatility and continued shifts in global supply chains. While global growth is expected to moderate compared with the post-pandemic recovery years, improving investment in digital technologies, infrastructure, manufacturing and energy security is expected to provide support to economic activity across several regions.
India is expected to remain one of the fastest-growing major economies. Following the robust economic growth recorded during FY 2025-26, economic activity is expected to normalise while remaining healthy, supported by sustained public capital expenditure, increasing private sector investments, favourable demographics and continued emphasis on digitalisation, ease of doing business and industrial development. Stable macroeconomic fundamentals, improving logistics infrastructure and ongoing structural reforms are expected to further strengthen Indias long-term growth prospects.
The steel industry and allied sectors, including refractories and ceramic raw materials, are expected to continue benefiting from Indias expanding infrastructure, construction, engineering and manufacturing sectors, with continued progress towards higher domestic steelmaking capacity and rising customer preference for high-performance, energy-efficient and environmentally sustainable refractory solutions expected to create further opportunities.
The Ceramic Raw Materials business is expected to benefit from increasing domestic manufacturing, higher mineral value addition and import substitution initiatives, with continued investment in beneficiation and process optimisation expected to strengthen the Companys competitive positioning.
The long-term outlook for the Specialty Ceramics business remains encouraging, with increasing investment in upstream oil and gas exploration and unconventional reservoir development expected to support demand for high-performance ceramic proppants. The Company will continue to focus on expanding its international presence and strengthening customer partnerships to capitalise on emerging opportunities.
The Company remains committed to strengthening its market position through continuous investment in research and development, product innovation, technology upgradation, and sustainable manufacturing practices. With its diversified product portfolio, integrated manufacturing capabilities, strong technical expertise and expanding domestic and international presence, the Company is well positioned to capitalise on emerging growth opportunities, enhance stakeholder value and deliver sustainable long-term growth despite an evolving global business environment.
Your Company continues to maintain a robust and adequate internal control procedures and vigilance system in place that aligns with its scale of operations and business complexity. These controls are designed to provide reasonable assurance that the Companys assets are safeguarded, transactions are duly authorized, recorded accurately, and reported timely. The internal control systems also ensure the reliability of financial reporting, effective operational monitoring, protection against unauthorized use or loss of assets, and adherence to applicable laws and regulations. During the year, the Company continued to strengthen its internal control environment through process improvements, digitization of key workflows, and risk-based reviews.
In line with best governance practices, and based on recommendations from the Audit Committee, the Company appointed M/s. Atul HMV & Associates LLP as the Internal Auditors for the financial year 2025-2026. The internal auditors conduct periodic audits across key departments and processes, assessing the effectiveness of business systems, compliance, and risk management practices.
Their observations and audit findings, along with the status of implementation of remedial actions recommended by them, are reviewed and discussed quarterly with the Audit Committee to ensure timely corrective measures and continuous improvement. Additionally, the Statutory Auditors provide an independent assessment of the adequacy and effectiveness of the Companys internal control systems, reinforcing confidence in financial controls and governance standards.
The Company remains committed to continuous improvement of its internal control systems to ensure strong governance and sustained business performance.
Please refer Note No. 38 of the Financial Statements.
Segment performance is evaluated and monitored based on profit or loss and is measured consistently with the statement of profit & loss. Operating segment have been identified on the basis of nature of products and other quantitative criteria specified in the Ind AS 108. The chief operational decision maker monitors the operating results of its business segment separately for the purpose of making decision about resource allocation and performance assessment.
The Board of Directors of the Company has authorised its KMPs to assess the financial performance and position of the Company and make decisions in normal course of business operations. For key strategic decisions, the Board of Directors take decisions after evaluating the possible options and recommendations given by the management.
Unallocable expenditure which are not directly attributable to any business segment are shown net of allocable income.
Segment assets include all operating assets used by the operating segment and mainly consist of property, plant and equipment, trade receivables, inventories and other operating assets. Segment liabilities primarily includes trade payable and other liabilities. Common assets and liabilities which cannot be allocated to any of the business segment are shown as unallocable assets / liabilities.
There is no change in the nature of business of the Company during the year under review. The Company has two major business segments in terms of the nature of output (i) Alumina Refractories & Monolithics products & bauxite ores: and (ii) Power generation. Inter segment revenues are recognised at sales price. The same is based on market price and business risks. Profit & loss on inter segment transfer are eliminated at the group level.
The Financial Statements for the year ended 31st March, 2026, have been prepared in accordance with the Companies (Indian Accounting Standards) Rule, 2015 (Ind AS) prescribed under section 133 of the Companies Act, 2013 and other recognised accounting practices and policies to the extent applicable.
For the Financial Year ended 31st March, 2026, at Standalone level, revenue from operations of the Company stood at Rs 40,538.98 Lakhs and profit before exceptional item and tax stood at Rs. 2,613.93 Lakhs. At Consolidated level, revenue from Operations stood at Rs. 40,360.41 Lakhs and profit before exceptional item and tax stood at Rs. 3,042.14 Lakhs. As compared to FY 2024-25, the Companys consolidated revenue from operations in FY 2025-26 increased by 23.39% while profit before exceptional item and tax increased by 130.31%.
The Board has recommended dividend of Rs.0.35/- per equity share for the Financial Year ended 31st March, 2026, payable subject to approval of the Members at the ensuing Annual General Meeting. This will result in a total outflow of Rs. 418.74 Lakhs.
The Company believes in maintaining a fair balance between dividend distribution and cash retention. The cash retention is required for future growth and to meet any unforeseen contingencies.
The key financial ratios for FY 2025-2026 and FY 2024-2025, are as follows:
| Sr. No. Particulars | 2025-26 | 2024-25 | % Change | Reasons for change in the ratio by more than 25% |
| 1 Debtors Turnover (Days) (Avg. Debtors/Sales) | 69.00 | 85.59 | (19.39) | |
| 2 Inventory Turnover (Days) (Sales/Avg. Inventory) | 87.07 | 93.42 | (6.79) | |
| 3 Interest coverage Ratio (Profit before Exceptional Item and tax + interest Exp) / Interest Expenses | 8.83 | 3.27 | 170.03 | Increase in profit |
| 4 Current Ratio (Current assets / Current Liability) | 3.22 | 2.66 | 21.20 | |
| 5 Debt Equity Ratio (Total debts / Shareholders fund) | 0.08 | 0.16 | (49.83) | Decrease in Debt |
| 6 Operating Profit Margin (in %) (EBIT-other Income) / Revenue from Operation | 3.26% | 3.56% | (8.43) | Increase in profit |
| 7 Net Profit Margin* (in %) (Net Profit/ Revenue from Operation) | 5.03% | 2.89% | 73.88 | Increase in profit |
| 8 Return on Net Worth (in %) (Net Profit/Average shareholders equity) | 6.51% | 3.49% | 86.66 | Increase in profit |
*before exceptional item
As on March 31, 2026, the Company had a total head count of 278 as against 256 in the previous year.
The Company continues to maintain healthy and harmonious employee relations across all its plants and offices. The Human Resources function plays a pivotal role in enabling business transformation by aligning organizational goals with individual aspirations. Senior management remains approachable and responsive, ensuring effective counselling and prompt redressal of employee grievances.
Recognizing that its workforce is a key driver of success, the Company remains committed to continuous training, skilling, and upskilling initiatives. These efforts ensure that employees are well-equipped to adapt to evolving technologies, processes, and industry practices.
The Managing Director makes a declaration at each Board Meeting on quarterly basis, regarding the compliance with provisions of various statutes after obtaining confirmation from all the unit heads of the Company. The Company Secretary also ensures compliance, inter-alia, with the provisions of Companies Act, 2013 and SEBI Regulations.
Statements made in this report describing the Companys objective, projections, estimates and expectations may be forward-looking statements within the meaning of applicable securities laws and regulations. Important factors that could make a difference to the Company operations include, among others, economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Company operates, changes in government regulations, tax laws & other statutes and incidental factors.
Although the expectations are based on reasonable assumptions, the actual results might differ.
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