Paushak Ltd Management Discussions

The Companys management provides its perspective on the operating and financial performance of the Company during financial year 2025-26 and an outlook of the business performance in the coming years:

(A) Industry Structure and Development & Business, Opportunities, Threats & Risks:

During the year under review, the global economy remained relatively stable, notwithstanding continued geopolitical developments, changes in trade policy and uneven recovery across sectors and geographies. The IMF, in its January 2026 update, reported that global growth remained resilient, supported by technology investment, fiscal and monetary support and private-sector adaptability, while downside risks persisted. The Indian economy continued to record decent growth during 2025-26. As per the revised GDP estimates released in February 2026, real GDP growth for FY 2025-26 was estimated at 7.6%, with manufacturing being one of the significant contributors to such growth.

The global chemical industry continued to operate in a challenging environment during the year with continued pressure on realizations and margins on account of weak demand recovery in certain end-use sectors, persistent global overcapacity and continued supply additions particularly from China. In India, the manufacturing environment remained supportive during the year. The pharmaceutical sector also showed resilience, with the Indian Pharmaceutical Market reporting higher single-digit growth in 2025 in value terms.

The operating environment for specialty chemicals remained mixed across user industries. The Company faced demand pressure in certain products, while pricing pressure persisted in several products on account of aggressive imports from China into the Indian market. Further, towards the end of the year under review, geopolitical developments in West Asia resulted in increased volatility in global energy, logistics and input markets and accentuated supply-chain disruptions and input cost volatility, particularly in relation to crude-linked raw materials. This led to a sharp increase in raw material prices in March 2026, while corresponding increase in selling prices could not be effected.

During the year, the Company continued its efforts towards capacity augmentation, modernization of facilities, process improvement and expansion of its product portfolio. The capital expenditure programme, substantially implemented towards the close of the year, was directed towards replacement and modernization of assets, strengthening of utility and safety infrastructure, and capability enhancement through new manufacturing assets and R&D facilities. As the Company scales up capacities through its new facilities and R&D capabilities, it is also working towards developing relationships with key global players and creating new opportunities for longer-term business associations. These efforts are intended to support more sustained growth, build a stronger long-term business base and reduce dependence on spot local opportunities and pricing pressure arising from Chinese imports. The benefits of these efforts, including stabilization of operations and improvement in capacity utilisation are expected to accrue progressively.

(B) Outlook:

The global economic environment continues to be influenced by uneven growth across regions, geopolitical uncertainties and volatility in trade conditions. The Indian economy, however, continues to be supported by relatively resilient domestic economic activity. Accordingly, the broader business environment is likely to remain characterized by supportive domestic conditions alongside continuing uncertainty in certain global markets.

The specialty chemicals industry outlook continues to be influenced by global overcapacity, pricing pressure and uncertainty in logistics and trade conditions. In India, the industry is likely to continue to derive support from the countrys manufacturing base, increasing integration with global supply chains and relatively resilient demand from end-user industries.

In this backdrop, the Company continues to focus on strengthening its position in the specialty phosgene derivatives market through its upgraded facilities and enhanced R&D capabilities, with emphasis on improving operating efficiencies, expansion of product portfolio and deeper customer engagement. The Company continues to accord emphasis to custom chemistry, supply reliability and sustained focus on safety, compliance and sustainability.

(C) Financial Performance:

The gross total income of the Company is ? 23,071 Lacs for the year under review as compared to ? 22,519 Lacs for the previous year. The Company registered a net profit of ? 3,933 Lacs for the year under review as compared to net profit of ? 4,938 Lacs for the previous year.

(D) Key Financial Ratios:

Kindly refer to the ratios disclosed under note no. 33(Y) to the financial statements.

(E) Internal Control Systems and Adequacy:

The Company believes that internal control is an integral part of good governance. It remains committed to maintaining an effective internal control environment that provides reasonable assurance to the Board of Directors, the Audit Committee and the management with regard to the reliability of financial and operational reporting, safeguarding of assets, and compliance with applicable laws and regulations.

Interrelated control systems covering financial and operating functions support the achievement of these objectives. The Company operates an Enterprise Resource Planning (ERP) environment supported by in-built controls for timely and reliable financial and operational reporting. During the year under review, the Company migrated from SAP ECC to SAP S/4HANA and continued to strengthen system-based controls and process integration across identified business functions.

(F) Human Resource - Developing Human Capital:

As the Company progressed with expansion of its downstream capacity and commissioning of new assets, it remained committed to investing in its people and strengthening organisational capability. The Company continued its efforts towards strengthening technical capabilities and imparting more extensive Behaviour-Based Safety (BBS) training with a view to fostering a stronger safety culture across the organisation. The Company also introduced online learning and training modules across various areas of operations and put in place training plans to support operational readiness for new assets upon commissioning. The Company also focussed on linking organizational goals with individual KRAs to ensure coherence in performance objectives across the organisation.

	On behalf of the Board of Directors,
	Sd/-
	Chirayu Amin
	Chairman
	DIN: 00242549
Date: 5 th May, 2026
Place: Vadodara