Party Cruisers Ltd Management Discussions

For the Financial Year 2025-26

BASIS OF PRESENTATION

The Management Discussion and Analysis (“MD&A”) presents Managements perspective on the Companys business, operating environment, inancial and operational performance, opportunities, risks and outlook for the year under review. The MD&A should be read in conjunction with the Companys audited inancial statements and the related notes forming part of the Annual Report. The MD&A has been prepared in accordance with the applicable provisions of the Companies Act, 2013 and Regulation 34 read with Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended from time to time. The information contained herein is based on the assessment of the Management and re lects the Companys performance, prevailing industry and economic conditions, and the Managements expectations regarding future business prospects as at the date of this Report. The MD&A has been reviewed and approved by the Board of Directors of the Company.

MATERIALITY OF DISCLOSURES

This Management Discussion and Analysis contain information that the Management considers material and relevant for enabling investors and other stakeholders to understand the Companys business, inancial and operational performance, risks, opportunities and future prospects. The disclosures contained in this MD&A have been made having regard to the applicable statutory and regulatory requirements, the Companys business environment and competitive position, and the information considered relevant for a fair and meaningful assessment of the Companys performance and prospects.

A. COMPANY OVERVIEW AND INDUSTRY STRUCTURE AND DEVELOPMENTS Party Cruisers Limited (“PCL” or “the Company”) is an integrated wedding and event management company providing end-to-end solutions across bespoke weddings, destination weddings, corporate events, social celebrations, artist and entertainment management, and venue sourcing. Since its incorporation in 1994, the Company has established itself as a trusted partner for families and corporates across India and the Middle East, delivering innovative, design-led and technology-enabled event experiences. Headquartered in Mumbai, with a presence across Pune, Nashik, Goa, Hyderabad, Lucknow and Delhi in India, and operating in the Middle East out of Dubai with a presence in Doha, Bahrain and Oman, the Company has developed expertise across the complete event value chain, including wedding design, decor and production, end-to-end wedding curation, corporate impression management, milestone and social celebrations, entertainment and artist management, and venue booking and management. The Company has successfully executed 1,500+ events for 500+ distinguished clients, and its lagship design and decor division, House of Vivaah, has received multiple Platinum and Gold industry honours for decor, sangeet and mehendi executions between 2019 and 2023, alongside features in publications such as Vogue. The Company has been listed on the National Stock Exchange of India since 2021 a distinction it holds as Indias only publicly listed wedding-planning and event management company bringing an added measure of transparency and governance to a traditionally unorganised industry. With a customer-centric approach, strong project execution capabilities and a diversi ied, six-division service portfolio, the Company has emerged as a comprehensive solutions provider capable of managing celebrations from concept development to lawless execution. The Indian wedding planning market was estimated at approximately USD 6.4 billion in FY 2024 and is projected to grow at a compound annual growth rate of approximately 12-13% through FY 2032, supported by rising disposable incomes, an expanding middle and af luent class, growing demand for professionally managed and design-led celebrations, and the continued rise of destination weddings both domestically and in the Middle East, Southeast Asia and Europe. India remains the worlds second-largest wedding market by volume, and industry commentators continue to note that the sector remains largely unorganised, creating a long runway for organised, professionally managed players. During the year under review, the Company continued to strengthen its presence in the wedding and events industry by leveraging its integrated six-division model, brand recognition and execution track record, while expanding its footprint across India and the Middle East. The Company remains focused on delivering customised, design-led solutions to its clients while pursuing new business opportunities through franchising, partnership-led expansion and inorganic growth.

Integrated Business Model Six Specialist Divisions

The Company operates through six specialist brand divisions, each addressing a distinct client need:

• House of Vivaah: wedding design, decor and production, functioning as PCLs lagship couture de cor studio for weddings and celebrations.

• Vows Vachan: end-to-end wedding planning and curation, from the irst consultation to the inal farewell, with a presence across India, Dubai, Doha and Bahrain.

•Event Factory: corporate impression management, covering product launches, leadership summits, brand activations and MICE events across BFSI, technology, FMCG and real estate clients.

• Party House: milestone and social celebrations such as birthdays, anniversaries, baby showers and retirement parties, scaled from intimate gatherings to large celebrations.

• Live Space: artist booking, live music, DJ and sound production, and celebrity management across genres.

• Venue Affairs: venue sourcing, contract negotiation and venue management across luxury hotels, heritage palaces, beach resorts and private estates.

B. OPPORTUNITIES AND THREATS Opportunities

The wedding and events industry continues to offer signi icant growth opportunities, supported by rising discretionary spending, gradual professionalisation of a largely unorganised industry, and increasing demand for integrated, design-led celebration management. The key opportunities available to the Company include:

1. Integrated, Multi-Division Service Model- The Companys six-division structure allows cross-selling between de cor, planning, corporate, social, entertainment and venue-sourcing services within the same client relationship, increasing the value of individual client relationships and improving business ef iciency.

2. Destination and Cross-Border Weddings- The Companys presence across Dubai, Doha, Bahrain and Oman positions it to continue growing its share of luxury destination weddings and NRI clientele in the Gulf, alongside its established domestic destination-wedding markets such as Goa, Rajasthan and Hyderabad.

3. Franchise-Led and Partner-Led Expansion- The Companys Franchise programme and Partnership & Entrepreneurship Program (PEP) provide asset-light routes to expand its footprint into new cities without a proportionate increase in capital deployed. 4. Inorganic Growth- The Company has articulated an M&A-led growth strategy that can be used to acquire complementary capabilities or regional players and to consolidate a largely unorganised industry. 5. Listed-Company Credibility- As Indias only NSE-listed player in the wedding and events space, the Company can leverage its listed, governed status to win larger corporate mandates through Event Factory, where vendor due diligence and inancial transparency are increasingly valued by clients. 6. Technology and Digital Integration- The increasing integration of digital technology with physical events event apps, AI-powered analytics, hybrid formats and live-streaming presents opportunities to enhance attendee engagement and differentiate the Companys corporate and wedding offerings alike. 7. Brand and Media Visibility- Continued media coverage, including features in publications such as Vogue, and industry awards for House of Vivaah support brand pull and premium positioning across the Companys client base.

Threats

While the industry presents considerable growth opportunities, the Companys business is subject to various risks and challenges. The key threats include: 1. Intense Competition The wedding and events industry is highly competitive, with the presence of established organised players as well as a large number of regional and unorganised service providers. Increased competition may exert pressure on pricing, margins and the Companys ability to secure projects.

2. Economic and Business Cycles Wedding and corporate event expenditure is discretionary in nature and may be in luenced by overall economic conditions, household sentiment and corporate spending. An economic slowdown may adversely affect demand for the Companys services. 3. Project Execution Risk- The Companys operations involve the planning and execution of time-bound, often single-occasion events. Delays, logistical issues, vendor-related challenges or unforeseen circumstances may affect project execution, costs and pro itability. 4. Cost Fluctuations- The cost of decor materials, venues, fabrication, manpower, transportation, logistics and other event-related inputs may luctuate. Signi icant increases in operating costs without corresponding pricing adjustments may adversely affect margins. 5. Dependence on Skilled Manpower- The industry requires skilled personnel for event planning, design, production, fabrication and execution across the Companys six divisions. Shortage or attrition of suitably skilled manpower may affect the Companys ability to execute projects ef iciently. 6. Geographic Concentration and Forex Risk- A meaningful part of the Companys operations is conducted in the UAE, Qatar, Bahrain and Oman, exposing the Company to foreign exchange movements and region-speci ic regulatory or geopolitical developments. 7. Cancellation or Postponement of Events- Weddings and events may be cancelled, postponed or rescheduled due to circumstances beyond the Companys control, including adverse weather, health emergencies, force majeure events or changes in client requirements, which may impact revenues and working capital. 8. Vendor and Supply Chain Dependencies- Successful execution of celebrations depends on third-party vendors, fabricators, venues and other service providers. Any failure or delay by such third parties may affect the Companys ability to deliver projects within stipulated timelines. The Company continues to monitor developments in the wedding and events industry and seeks to capitalise on emerging opportunities while appropriately managing associated risks. The Company intends to focus on strengthening its execution capabilities across all six divisions, maintaining service quality, developing long-term client relationships, adopting relevant technologies, and expanding its market presence through franchising, partnerships and disciplined inorganic growth.

C. SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

The Companys operations are organised across six specialist brand divisions, each addressing a distinct client need: House of Vivaah (wedding design, de cor and production), Vows Vachan (end-to-end wedding planning and curation), Event Factory (corporate impression management), Party House (milestone and social celebrations), Live Space (entertainment and artist management), and Venue Affairs (venue sourcing and management). As disclosed in the Companys audited inancial results for the year ended 31st March, 2026, the Company has assessed that it has only one reportable segment in terms of Accounting Standard (AS) 17 ‘Segment Reporting. Accordingly, no separate segment-wise inancial disclosure has been given in the inancial statements, and the six brand divisions described above are accordingly presented as an integrated, single-segment wedding and event management business rather than as separately reportable segments.

D. OUTLOOK

The outlook for the Indian wedding and events industry remains encouraging, supported by rising household incomes, an expanding base of high-net-worth individuals, the continued rise of destination weddings, and gradual professionalisation of a historically unorganised industry. Building on more than three decades of operating history and its six-division ecosystem, the Company intends to continue deepening its presence across India and the Middle East, pursue asset-light expansion through its Franchise and Partnership & Entrepreneurship Program routes, evaluate inorganic opportunities consistent with its stated M&A strategy, and continue strengthening client relationships through consistent service delivery and robust contingency planning across a growing scale of operations. The Company remains committed to pursuing sustainable growth while maintaining prudent inancial management, effective cost control and disciplined execution. The Management will continue to monitor market developments and emerging opportunities and will take appropriate strategic and operational measures in response to changing business conditions.

E. RISKS AND CONCERNS

The Company operates in a dynamic, project-oriented and largely discretionary-spend business environment and is exposed to certain risks that may affect its operations and inancial performance. The key risks and concerns relevant to the Companys business are as follows:

Project and Execution Risk

The Companys business involves execution of weddings and events within speci ied timelines and budgets. Any delay in execution, changes in scope, logistical challenges or unforeseen operational issues may affect project costs, margins and customer satisfaction.

Receivables and Liquidity Risk

The Companys working capital requirements are in luenced by the timing of customer collections and project-related payments. Delays in realisation of receivables may increase working capital requirements and affect liquidity.

Vendor and Third-Party Risk

Execution of weddings and events involves coordination with various vendors, venues, decorators and service providers. Any failure, delay or quality de iciency on the part of third parties may impact project timelines and costs.

Reputation and Customer Relationship Risk

The Companys business is dependent on its ability to consistently deliver projects in accordance with agreed quality and timelines, particularly at high-visibility celebrations. Any material de iciency in service delivery may adversely affect customer relationships and the Companys reputation across its six client-facing divisions.

Human Resource Risk

The Companys operations require personnel with appropriate managerial, creative, design and execution capabilities. Availability and retention of skilled manpower is important for maintaining operational ef iciency, and key-person dependence on the founder-promoters remains a relevant consideration.

Geographic Concentration and Forex Risk

A meaningful part of the Companys operations is conducted in the UAE, Qatar, Bahrain and Oman, exposing the Company to foreign exchange movements and region-speci ic regulatory or geopolitical developments.

Regulatory and Compliance Risk

The Company is required to comply with various statutory, regulatory and contractual requirements applicable to its business, including in the jurisdictions in which it operates in the Middle East. Any changes in applicable laws or non-compliance with prescribed requirements may result in inancial, operational or reputational consequences. As disclosed in the Companys audited inancial results for the year ended 31st March, 2026, the Company is currently evaluating the implications of recently introduced labour law changes on its operations, employee-related costs and statutory compliances; as this assessment is ongoing, the inancial impact, if any, cannot presently be reasonably determined and will be accounted for and disclosed once ascertainable.

Risk Management

The Company follows a structured approach towards risk management, under which material risks are identi ied, assessed and monitored on a periodic basis. The Management, along with appropriate Board-level oversight, reviews signi icant risks and takes suitable measures for their mitigation, and will continue to strengthen its risk management and internal control processes as considered necessary to safeguard the Companys business interests and support sustainable growth.

F. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has internal inancial controls commensurate with the size and nature of its operations. The internal control framework is designed to ensure orderly and ef icient conduct of business, safeguarding of assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records, and timely preparation of reliable inancial information. The Company has appointed M/s. Rahul Pramod & Co., Chartered Accountants, as the Internal Auditor of the Company pursuant to Section 138 of the Companies Act, 2013. The internal controls are periodically reviewed by the Management and the Audit Committee, together with the Board, and corrective measures are undertaken wherever necessary to strengthen the control environment.

G. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The key highlights of the audited Standalone and Consolidated inancial performance of the Company for the inancial year ended 31st March, 2026, as compared to the previous inancial year ended 31st March, 2025, are summarised below:

( in Lakhs)

Particulars	Standalone		Consolidated
	FY 2025-26	FY 2024- 25	FY 2025-26	FY 2024- 25
Revenue from Operations	13,969.90	11,083.11	14,682.88	11,649.56
Other Income	76.49	63.21	95.19	63.21
Total Income	14,046.38	11,146.32	14,778.06	11,712.77
Less: Total Expenses	12,354.55	10,037.16	13,044.04	10,553.03
Pro it Before Tax	1,691.84	1,109.16	1,734.02	1,159.74
Less: Tax Expense (Current + Deferred)	458.81	318.38	468.81	318.25
Pro it After Tax	1,233.03	790.77	1,265.21	841.49
Less: Share of Minority Interest			8.76	11.16
Net Pro it After Minority Interest	1,233.03	790.77	1,256.44	830.33
Earnings Per Share	10.29	6.63	10.56	7.06
Basic/Diluted ( )

Standalone Performance

•a) Revenue: Revenue from Operations for FY 2025-26 was 13,969.90 lakh, compared with 11,083.11 lakh in FY 2024-25, representing an increase of approximately 26.05%.

• b) Pro it Before Tax: Pro it Before Tax for FY 2025-26 was 1,691.84 lakh, compared with 1,109.16 lakh in FY 2024-25, representing an increase of approximately 52.53%.

• c) Pro it After Tax: Pro it After Tax for FY 2025-26 was 1,233.03 lakh, compared with 790.77 lakh in FY 2024-25, representing an increase of approximately 55.93%.

Consolidated Performance

•a) Revenue: Revenue from Operations for FY 2025-26 was 14,682.88 lakh, compared with 11,649.56 lakh in FY 2024-25, representing an increase of approximately 26.04%.

• b) Pro it Before Tax: Pro it Before Tax for FY 2025-26 was 1,734.02 lakh, compared with 1,159.74 lakh in FY 2024-25, representing an increase of approximately 49.52%.

• c) Pro it After Tax: Net Pro it after Minority Interest for FY 2025-26 was 1,256.44 lakh, compared with 830.33 lakh in FY 2024-25, representing an increase of approximately 51.32%. The improvement in both standalone and consolidated performance during FY 2025-26 was driven primarily by growth in revenue from operations, alongside a lower proportionate increase in operating expenses (up approximately 23.09% standalone and 23.62% consolidated) relative to revenue growth, resulting in margin expansion at the pro it-before-tax level. Other income, employee bene its expense, inance costs and depreciation remained broadly stable as a proportion of total income between the two years.

H. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

Human resources continue to be an important asset of the Company. During the year under review, the Company continued to focus on maintaining a conducive, professional and performance-oriented work environment across its six specialist divisions, and on developing the skills and capabilities of its employees. The industrial relations of the Company remained cordial and satisfactory throughout the year under review, and the Company continued to maintain healthy employee relations and a positive working environment conducive to the ef icient conduct of its business operations. As on 31st March, 2026, the Company had 67 employees. The Company remains committed to strengthening its human resource capabilities in line with its business requirements and future growth plans.

CAUTIONARY STATEMENT

Statements in this report describing the Companys objectives, expectations, estimates or predictions may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied in such statements due to various factors, including economic conditions, availability and cost of labour and materials, domestic and international market conditions, changes in government policies, taxation and regulatory requirements, and other factors beyond the Companys control. The Company assumes no obligation to publicly update, amend or revise any forward-looking statement as a result of subsequent developments, information or events, except as may be required under applicable laws.

DISCLOSURE OF ACCOUNTING TREATMENT

The inancial statements have been prepared in accordance with the applicable accounting principles and standards prescribed under Section 133 of the Companies Act, 2013, read with the relevant rules thereunder, on an accrual basis and under the historical cost convention, except where otherwise stated. The Company has consistently applied the applicable accounting policies and standards in the preparation of its inancial statements.

For and on behalf of the Board of Directors

Party Cruisers Limited

Zuzer Lucknowala

(DIN: 00979509)

Chairman & Managing Director

Date: 07.09.2026

Place: Mumbai