Orient Press Ltd Management Discussions

1. Introduction-Global Economy:

Resilience defined the global landscape in FY 2025 as World output expanded by approximately 3.4%. While technology- led investments and supportive policies provided a steady counterweight, this momentum faced persistent tests from geopolitical tensions and rising trade barriers. According to the IMF World Economic Outlook (April 2026), global growth is expected to moderate to 3.1% in FY 2026 before seeing a modest recovery to 3.2% in FY 2027. This 0.2% point downward revision stems largely from the Middle East

February FY 2026, an event that has disrupted energy markets and trade flows globally. Consequently, headline inflation is projected to reach 4.4% in FY 2026 before easing toward 3.7% in FY 2027.

Ongoing disruptions to energy infrastructure and the volatility surrounding the Strait of Hormuz are actively compressing consumer purchasing power. While the baseline forecast assumes these disruptions are temporary, a more severe escalation could further weaken growth and sustain inflationary pressures for an extended period.

The global economic environment is expected to remain shaped by elevated geopolitical uncertainty, evolving trade dynamics, and tighter financial conditions. Continued investments in technology, digital infrastructure, and artificial and industrial activity across several economies.

2. Industry Structure & Development

Zooming into India, the economic narrative remains incredibly robust. Real GDP growth for 2025-26 reached an estimated 7.7%, stepping up from the previous years

7.1%. Driven by resilient domestic demand and infrastructure strides, India firmly secured its spot as the worlds sixth-largest economy. The Reserve Bank of Indias strategic easing provided a meaningful tailwind for this growth. Across

2024-25, the RBI reduced the repo rate cumulatively by 125 basis points, delivering four strategic cuts in February, April, June, and December, bringing it from 6.50% to 5.25%. This easing cycle gave businesses and households a welcome breather, fueling both consumption and investment activity.

The industrial sector achieved a growth rate of 8.1% in the first half of 2025-26. Indias manufacturing PMI reached a four-month high of 56.9 in February 2025-26, driven by strong domestic orders and efficiency improvements. Investor sentiment remained optimistic, with the Nifty India Manufacturing Index reached a 52-week high of 16,152.65 points in early May 2026.

The global corrugated boxes market size was valued at USD 179.4 billion in 2025 and is projected to grow from

USD 188.5 billion in 2026 to USD 269.7 billion by 2033, at a CAGR of 7.5% from 2026 to 2033. Asia Pacific dominated the global corrugated boxes market with the largest revenue share of 53.2% in 2025. Its growth is attributed to rising demand for corrugated boxes from various industries such as e-commerce, food & beverage, industrial, textile, home & personal care, and agriculture among others.

Review of Operations

During the year, the Company has incurred pre-tax Loss of 157.29 Lakhs as compared to pre-tax loss of 374.35 Lakhs in the previous year. The Net Turnover of the Company was at 12,813.94 Lakhs for the year as against 14,253.66 Lakhs in previous year.

The Revenue from Operations (Net) of different divisions of the Company was as under:

( In Crores)

3. Segment Wise Performances

The Business of Company falls under three Segments viz. (a) Printing (b) Flexible Packaging (c) Paper Board Packaging

The Revenue from Operations (Net) of the Printing Division of the Company has increased by 5.87% compared to the previous year.

(b) intelligenceareexpectedtosupport productivity Flexible Packaging Division: The Revenue from Operations (Net) of the Flexible Packaging Division of the Company has decreased by 30.80 % compared to the previous year. The division was operated below of its production capacity due to severe competition from the unorganized sector and un-remunerative selling price. In the current year turnover of this division should improve.

(c) Paper Board Carton /Rigid Box Division:

The Revenue from Operations (Net) of the Paper

Board Carton & Rigid Box Division of the Company increased by 30.57% compared to the previous year. The division was operated below of its production capacity due to severe competition from the unorganized sector and un-remunerative selling price. In the current year turnover of this division should improve.

The Company is keenly interested in inducting new technology aimed at upgrading its existing facilities to remain as one of the leading players in the printing and packaging industry. The Companys main thrust now is in paper and paper board related printing and packaging business to safeguard its business interest against any government legislation to curb plastic related packaging on the ground of environmental pollution. The Company is committed to promote eco-friendly packaging for which it has installed automatic

Board to Kraft fluting Lamination Machines. All these machineries and equipment will help the Company to enhance its business opportunity in value added printing and packaging sector and in export market.

4. Future Prospects / Outlook

Packaging is currently the fifth-largest sector of the Indian economy. The paper and paperboard packaging business experienced strong growth over the last decade, driven by growth in e-commerce, pharmaceutical, food processing, manufacturing, FMCG, and healthcare sectors.

Additionally, the rising literacy rates, expanding education sector, and government initiatives promoting education for all have resulted in a surge in demand for paper products. From textbooks and notebooks to stationery and printing papers, the Indian paper industry plays a vital role in supporting the education system and knowledge dissemination. This growing demand for paper-based educational materials has contributed significantly to the industrys expansion. Moreover, technological advancements and investments in advanced machinery and equipment have enhanced production capabilities, efficiency, and product quality in the industry. The adoption of cutting-edge technologies has not only improved manufacturing processes but also enabled customization and specialization, allowing the industry to cater to diverse customer needs effectively.

5. Financial Review

Key Financial Ratios pursuant to Notification dated 9TH May, 2018 of Securities & Exchange Board of India (Listing Obligations and Disclosure Requirements) (Amendment) Regulations, 2018 are as under:

*The significant changes in above stated key financial ratios can be attributed to main factors such as loss for the year is lower as compare to previous year.

6. Industry Structure

Though the printing and packaging industry is one of the biggest employers in the country, the nature of the industry is not organized and it has not been termed as an "Unorganized Industry" by the Government of India. The number of players in our industry is close to 1,20,000 units ranging widely from the highly organized sector to a very small proprietary units. Due to this diversified structure of the industry, growth and profitability are affected by unhealthy competition.

The packaging industry enjoys continuous growth in demand year after year, necessitating large investments for technology upgradation and automation of manual operations. However fragmented nature of the industry, consequent unhealthy competition put pressures on margins, increasing payback periods for investments. As demand from the larger customers is consistently increasing, it is expected that the organized segment will secure larger market share and better margins.

7. Opportunities and Threats

The printing and packaging sector offers massive growth driven by e-commerce, sustainable demands, and food delivery. Key opportunities include eco-friendly biodegradable materials, digital short-run printing, smart packaging with QR or RFID codes, and flexible packaging pouches. The printing and packaging industry is a large and fast developing sector. The revolution owing to the growing applications of digital printing. Digital printing is packagingindustryhasseenasignificant the newest and most innovative printing technology for packaging and labeling and is preferred by many brand owners for quick turnaround.

Boxes & cartons are the dominating packaging type. The segments growth is attributed to increased brand protection and awareness, cost-effectiveness, customer experience, and elevated design flexibility. Printing on boxes & cartons expands brand awareness and protection without spending additional money, thus boosting its demand from multiple end-use industries. Moreover, printed cartons & boxes have enabled the brands to communicate better and connect with customers, thus boosting segmental growth. Printing and publishing sectors are evergreen and ever-evolving sectors. The printing industry is vast and comprises of printing newspapers, magazines, books, brochures, newsletters, memo pads, business order forms, visiting cards, posters, checks, maps, T-shirts, and packaging. Every product and every service needs printing and publishing in some way or the other. There are various levels of jobs and expertise needed in this industry.

Several industries, like fast moving consumer goods (FMCG), agriculture, pharma, e-commerce etc are increasingly dependent on the paper and packaging industries to finish the production of their goods. e increasing demand for high-quality paperboard and packaging paper has encouraged paper manufacturers to introduce innovative products and expand their distribution channels.

The Indian paper industry remains a largely fragmented sector. It consists of small, medium, and large paper mills, with production ranging from 5 to 2,000 metric tones per day. Although the growth possibilities remain strong, the industry faces some complex and evolving challenges that affect its growth. The cost of raw materials for the paper packaging industry, such as wood pulp and recycled paper, has been rising in recent years. This is due to factors such as the increasing demand for paper from emerging economies, the shortage of timber, and the rising cost of energy. Paper packaging industry is constantly evolving, with new technologies being developed to improve the efficiencyand sustainability of paper production. This can be a challenge for businesses in the industry, as they need to invest in new equipment and training in order to stay competitive. Printing is an essential aspect of many businesses, and production printing, in particular, is crucial for those that require high-volume printing. However, like any other technology, production printing comes with its own set of challenges that can impact productivity and efficiency.

The paper packaging industry is capital-intensive, and businesses in the industry often need access to credit to finance their operations. However, the credit flow to the industry is often inadequate, which can make it difficult for businesses to invest and grow. The printing industry is witnessing rapid technological advancements with new printing technologies and machinery continuously entering the market. While innovations such as single pass digital printers offer enhanced speed and quality, they also pose challenges for traditional printing businesses that rely on outdated equipment. Investing in modern printing machinery is essential to stay competitive. These printers enable high-speed printing with superior quality, catering to the growing demand for personalized and short-run printing jobs.

8. Internal Control Systems and their adequacy

The Company has an Internal Control System, commensurate with the size, scale and complexity of its operations. The scope and authority of the Internal Audit function is defined in the Internal Audit Manual. To maintain its objectivity and independence, the Internal Audit function reports to the Chairman of the Audit Committee of the Board & to the Chairman & Managing Director of the Company. The Internal Auditor monitors and evaluates the efficacy and adequacy of internal control system in the Company, its compliance with operating systems, accounting procedures and policies at all locations of the Company. Based on the report of internal audit function, process owners undertake corrective action in their respective areas and thereby strengthen the controls. Significant along with corrective actions thereon are presented to the Audit

Committee of the Board.

9. Material Developments in Human Resources /Industrial Relations Front

Directly/indirectly your Company is providing employment to more than 350 persons at various levels at its factories and the

Corporate Office. Its industrial relations continue to remain cordial.