Paramount Cosmetics India Ltd Management Discussions

Statements in this Report, particularly those which relate to Management Discussion and Analysis, describing the Companys objectives, projections, estimates, and expectations, may constitute forward- looking statements within the meaning of applicable laws and regulations. Actual results might differ materially from those either expressed or implied.

Industry Structure and Developments

Indias Retail Consumer Products Landscape is expanding rapidly, driven by rising disposable incomes, urbanisation, evolving consumer preferences, and the growing penetration of organised retail and digital commerce. The sector spans diverse categories including beauty and cosmetics, personal care, household care, food and beverages, and other everyday essentials.

Within this landscape, the selling and distribution market plays a pivotal role. Efficient distribution networks and strong selling capabilities are the backbone of growth, ensuring product availability, wider market reach, and seamless access across general trade, modern trade, e-commerce, and quick commerce. As demand for consumer products rises, the distribution ecosystem is becoming increasingly vital in connecting brands with consumers across urban, semi-urban, and emerging markets.

Business Transformation and Market Opportunity

The Company is strategically repositioning itself as a selling & distribution-driven platform within the ever-growing Retail Consumer Products Landscape. Moving beyond its traditional focus on single brand cosmetics, it is leveraging its established selling and distribution strengths to serve multiple brands multiple consumer product categories.

This transformation enables the Company to adapt quickly to changing consumer preferences, diversify revenue streams, and reinforce its role as a trusted partner for brands seeking nationwide reach.

Key Industry Trends

The Retail Consumer Products Landscape is being shaped by several defining trends:

• Expansion across diverse consumer product categories.

• Rising demand for quality, convenience, and value.

• Rapid adoption of modern trade, e-commerce, and quick commerce.

• Growing importance of last-mile connectivity and efficient distribution.

• Intensifying competition and emergence of new brands.

• Deeper penetration into urban, semi-urban, and emerging markets.

Outlook

The Retail Consumer Products Landscape is expected to remain resilient, supported by Indias expanding consumer base and evolving lifestyles. For the Company, this presents significant opportunities to strengthen its position as a selling and distribution powerhouse.

The Company will continue to:

• Enhance its selling and distribution network to expand market reach.

• Build stronger customer and retailer relationships.

• Collaborate with brands that have strong product portfolios but lack the infrastructure to scale across India.

• Leverage its established presence in retail and novelty stores to drive direct consumer sales.

By focusing on its core strength in selling and distribution, the Company aims to evolve into a multi-brand distribution platform, enabling consumer product companies to achieve nationwide reach while ensuring sustainable growth across the broader retail landscape.

KEY BUSINESS DEVELOPMENTS IN THE COMPANY DURING THE FY 2025-26

• Distribution alignment and strengthening

• Supply chain efficiency

PRODUCT WISE OUTLOOK

The Company continues to focus on strengthening its selling and distribution network. Going forward, the Company intends to leverage it to onboard and market products from vendors, brands and business partners across diverse Retail consumer products categories. This approach will enable the Company to broaden its product portfolio, cater to evolving consumer needs and create opportunities for scalable, distribution-led growth.

FINANCIAL PARAMETERS

Refer Boards Report

OPPORTUNITIES AND THREATS

The Company sees significant opportunity in leveraging its existing marketing, selling and distribution network by partnering with vendors, brands, business partners and other product owners to onboard their products on the Companys platform. This model can enable wider market access, strengthen product offerings, expand the Companys presence across Retail consumer Products categories and create opportunities for scalable, distribution-led growth.

The Company operates in a competitive and rapidly evolving environment, with risks arising from changing consumer preferences, competition, pricing pressures and the availability of alternative distribution channels. Dependence on third-party vendors and business partners may also expose the Company to risks relating to product quality, supply continuity and partner performance.

RISKS AND CONCERNS

The Companys business model is dependent on its ability to effectively scale its selling and distribution network and build a sustainable network of vendors, brands and business partners. As the Company expands, it may face challenges relating to scalability of operations, partner onboarding, execution of business arrangements and maintaining service levels across an expanding network.

The transition may also require continuous investment in market development, systems, processes and resources. The pace of business expansion and the ability to achieve adequate scale may impact the Companys growth and operating performance.

The Company seeks to address these concerns through a phased and prudent approach to expansion, strengthening its systems and processes, developing long-term business relationships and regularly reviewing the performance and scalability of its business model.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has an internal control framework commensurate with the size and nature of its operations. The framework is designed to ensure proper authorisation, accountability and monitoring of business activities and to support the reliability of financial and operational information.

The Company follows defined policies and procedures for key transactions, with appropriate checks and approvals at relevant levels. Periodic reviews are undertaken by the management to assess the effectiveness of controls and identify areas requiring strengthening.

The Audit Committee, wherever applicable, oversees the adequacy of the internal control framework based on periodic reporting and review. The Company believes that its existing internal control systems are adequate and operating effectively in relation to its present scale and nature of operations.

HUMAN RESOURCES

The Company recognizes its employees as its most valuable asset and remains committed to fostering a positive, inclusive and performance-driven work environment. It continues to focus on employee well- being, learning and development, talent management and ethical business practices, while ensuring compliance with applicable laws and maintaining a safe and healthy workplace. The Company also aims to leverage technology-driven HR practices to enhance workforce efficiency and employee engagement.

As on March 31, 2026, the Company had 34 employees. The Company believes that a motivated and skilled workforce, supported by a culture of collaboration and continuous learning, is fundamental to achieving sustainable growth and long-term business success.

CONCLUSION

As we move forward, our focus remains firmly on strengthening the Companys position as a leading sales and distribution organization by expanding our market reach, enhancing our distribution capabilities and delivering greater value to our customers and business partners. We believe that our extensive distribution network, customer-centric approach and commitment to operational excellence provide a strong foundation for sustainable growth.

I would like to express my sincere appreciation to our employees, distributors, customers, business associates, shareholders and all other stakeholders for their continued trust, support and commitment. With their unwavering confidence and dedication, we remain optimistic about the future and confident in our ability to create sustainable long-term value while upholding the highest standards of corporate governance and business ethics.

For and on behalf of the Board of Directors Paramount Cosmetics (India) Limited
Sd/-	Sd/-
Mr. Hiitesh Topiiwaalla	Ms. Aarti Topiwaala
Managing Director	Director
DIN:01603345	DIN:03487105
Date: 01.09.2026
Place: Bengaluru