Platinum Industries Ltd Management Discussions

Economic review

GLobaL economy

The gLobaL economy remained broadLy resiLient in CY 2025, despite continued uncertainties in trade and poLicy environments. GLobaL GDP growth remained steady at 3.5%, whiLe infLation moderated across most economies. This growth was primariLy driven by Emerging Market and DeveLoping Economies (EMDEs), which expanded by 4.5%, aided by the robust trade and production adjustments. SimuLtaneousLy, advanced economies grew at a graduaL pace at 1.9%. The gLobaL economy was therefore supported by technoLogy-Led exports, which offset sLower momentum across other product categories, whiLe internationaL trade continued to pLay a cruciaL roLe in cross-country income convergence. At the same time, gLobaL trade poLicies were increasingLy influenced by security and geopoLiticaL considerations, rather than efficiency and estabLished muLtiLateraL frameworks.

Looking ahead, gLobaL economic conditions are expected to remain broadLy stabLe. GLobaL growth is projected at 3.0% in CY 2026 and 3.4% in CY 2027. NevertheLess, escaLated geopoLiticaL tensions and potentiaL trade disruptions continue to pose risks. In this context, timeLy and coordinated poLicy measures by governments worLdwide wiLL be criticaL to managing macroeconomic chaLLenges and sustaining growth. EMDEs are expected to maintain a reLativeLy strong growth momentum,

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expanding by 3.8% in CY 2026, supported by robust domestic demand and strategic poLicy measures. GLobaL trade dynamics and geopoLiticaL tensions in the MiddLe East remain a key uncertainty. ALthough the gLobaL economy is expected to sustain growth aided by investments in technoLogy, digitaL infrastructure, and manufacturing.

Indian economy

FY 2026 tested India with externaL headwinds, incLuding heightened gLobaL trade uncertainty and high penaL tariffs, yet the Government of India Leveraged these chaLLenges to drive reform. It introduced caLibrated poLicy measures, such as GST rationaLisation, acceLerated dereguLation and simpLified compLiance requirements across sectors. Despite muLtipLe gLobaL headwinds the Indian economy achieved a reaL GDP growth rate of 7.7%, reflecting strong underLying momentum in economic activity., Growth was supported by robust consumption and investment, aided by supportive poLicy measures, ongoing structuraL reforms and favourabLe financiaL conditions. This demand-Led resiLience was aLso refLected on the suppLy side. Manufacturing activity strengthened, whiLe the services sector continued to remain a key driver for overaLL economic growth. The Government of India aLso continued to impLement timeLy poLicy measures to strengthen domestic growth drivers, improve resiLience against gLobaL shocks, diversify exports and manage externaL sector risks.

Indias manufacturing sector is undergoing a graduaL transformation, supported by poLicy intent and industriaL ambition. At the centre of this shift is the Production Linked Incentive (PLI) scheme.With an incentive outLay offi.97 Lakh crore and approvaLs across 14 strategic sectors, the scheme is more than a financiaL support mechanism. It is supporting the Make in India movement through scaLed domestic manufacturing

and strengthening DigitaL India by promoting LocaL production. The Production Linked Incentive (PLI) Scheme was Launched to boost domestic manufacturing through targeted, performance- based incentives across strategic sectors.

On the externaL financing front, gross Foreign Direct Investment (FDI) witnessed strong growth, whiLe net FDI showed improvement. India aLso remains an attractive destination for greenfieLd FDI projects. Looking ahead, India is expected to maintain its growth momentum and the GDP is expected to grow by 6.6%. The Union Budget 2026-27 introduced the framework of ‘Kartavyas, with a key emphasis on acceLerating growth. FY 2027 is expected to be a phase of economic adjustment, as businesses and househoLds adapt to evoLving conditions, whiLe demand and investment activity continue to strengthen. The Governments emphasis on expanding domestic manufacturing across severaL strategic and emerging sectors is weLL aLigned with Indias Long-term growth trajectory. On the demand front, private consumption in FY 2026-27 is expected to receive support from discretionary spending. RuraL demand continues to remain resiLient, whiLe urban consumption is expected to strengthen further, supported by the positive impact of GST rationaLisation and sustained momentum in the services sector. In addition, the JaL Jeevan Mission (JJM) continues to improve ruraL Living standards by providing tap water connections. To acceLerate the missions progress, impLementation measures incLude saturation pLans, reguLar reviews and fieLd visits is expected to provide technicaL support.

Global industry

The gLobaL chemical, industry represents a vast and diversified sector, with Leading companies delivering extensive product portfolios across muLtipLe end-use markets. Over the years, industry expansion has been supported by growth in industriaL manufacturing, oiL and gas processing, rising demand for agrochemicaLs, infrastructure deveLopment and increased consumption of personaL care products. In CY 2025, the industry reached an estimated market size of USD 5.33 triLLion. During the reporting period, Asia Pacific remained the Largest regionaL market, foLLowed by North America. AdditionaLLy, the industry operated amid persistent uncertainty and voLatiLity marked by poLicy shifts and geopoLiticaL tensions, which had an impact on suppLy chains. Despite these pressures, the sector has consistentLy demonstrated resiLience by adapting to demand cycLes, evoLving reguLatory requirements and energy price variabiLity. This adaptabiLity has been achieved through active risk management, operationaL agiLity and stronger suppLy chain robustness, measures that are criticaL in navigating ongoing voLatiLity.

Looking ahead, the gLobaL chemicaL industry is projected to reach USD 5.68 triLLion in CY 2026. Growth is anticipated to be supported by accelerating demand for green and bio-based chemicaLs, increased investment in advanced manufacturing technologies, rising demand for speciaLty chemicaLs, tightening reguLatory standards and broader adoption of digitaL process optimisation. SeveraL structural trends continue to reshape the sector. These incLude sustained demand for speciaLty and

high-performance chemicaLs, greater emphasis on sustainabLe production, increased deployment of automation, expansion of downstream applications and stricter reguLatory compliance. Sustained growth wiLL require companies to baLance shortterm financiaL discipline with strategic repositioning, incLuding assessment of cost structures, portfoLio strategies and innovation priorities.

Indian industry

India ranks among the worLds Leading producers of chemicaLs gLobaLLy, suppLying essentiaL raw materiaLs to sectors such as pharmaceuticaLs, textiLes, automotive and agricuLture. The Indian chemicaLs industry remains a centraL piLLar of the countrys economic ecosystem, supported by expanding domestic demand and a broadening manufacturing base. During the reporting year, the Government of India pLayed a pivotaL roLe in supporting the sectors growth trajectory.

Despite its structuraL strengths, the industry operates within a chaLLenging environment characterised byimportsdependence, constrained feedstock avaiLabiLity, infrastructure shortfaLLs and reguLatory complexities. These factors highLight the importance of sustained poLicy support and strategic interventions. The Government of India has implemented initiatives such as Make in India, Aatmanirbhar Bharat and the Production-Linked Incentive (PLI) Scheme to stimuLate domestic manufacturing and attract investments. Complementary efforts in backward integration and gLobaL partnerships are further strengthening industry resiLience.

Over the past two decades, Indian chemicaL companies (ChemCos) have demonstrated their abiLity to commerciaLise compLex chemistry, enhance operationaL efficientLy and compete in gLobaL markets. This progress refLects deepening technicaL expertise, improved capitaL access and discipLined expansion strategies. Robust domestic demand has been a key contributor to this progress, driven by rising income LeveLs, evoLving consumption patterns and premiumisation trends. In particuLar, momentum in the beauty and personaL care sector, aLongside sustained construction activity, continues to support consumption growth.

Looking ahead, the Indian chemicaL industry is weLL-positioned for further expansion and is expected to reach a market size of approximately USD 450 biLLion by 2030 and USD 850 biLLion by 2040. Indias competitiveness can be further enhanced through poLicy reforms aimed at streamLining reguLatory approvaLs, offering fiscaL and non-fiscaL incentives and strengthening

trade agreements. Dedicated R&D support mechanisms couLd acceLerate indigenous technoLogy deveLopment, improve competitiveness and reduce externaL dependencies. Expanding domestic production capacity remains criticaL to meeting future demand whiLe progressiveLy moderating import reLiance. As Indias integration into gLobaL chemicaL vaLue chains deepens, its share of gLobaL chemicaLs consumption is projected to rise to ~10% by 2040.

Company overview PLatinum Industries

Journey from ‘Made in India to ‘Admired by the World

PLatinum industries is a premier muLti-product enterprise operating in the specialty chemicaLs sector, specialising in PVC and CPVC additives, metaL soaps and Lubricants, OriginaLLy incorporated as PLatinum industries LLP in August 2016, the Company has steadiLy progressed into a notabLe pLayer in the Indian chemicaL industry, in 2020, it transitioned from a Limited Liability Partnership to a Private Limited Company, foLLowed by the establishment of its subsidiary, PLatinum StabiLizers Egypt LLC, in 2022, These milestones refLect a disciplined growth strategy,

PLatinum industries expansion has been anchored on a sustained emphasis on quaLity, innovation and customer centricity, supported by a cLearLy defined organisationaL purpose, The Companys operating phiLosophy recognises that Long-term business success is intrinsicaLLy Linked to vaLue creation and broader societaL impact,

To reinforce its innovation capabilities, the Companys R&D facilities are equipped with advanced anaLyticaL and testing instruments, including an XRF spectrophotometer, a rheoLogy anaLyser and a xenon arc weathering instrument, These faciLities enabLe precise anaLysis and durabiLity testing under varied conditions, The in-house R&D unit is recognised by the Department of Scientific and industriaL Research (DSIR), highlighting the Companys adherence to high quaLity standards, AdditionaLLy, strengthening its inteLLectuaL portfoLio, the Company has secured a patent for a stabiLiser composition for thermostabLe chLorinated vinyL chLoride resin and its products, granting exclusive rights for a period of 20 years,

PLatinum industries serves customers across more than 30 countries, with primary markets including France, Germany, the UK, Egypt, South Africa, Nigeria, China, Saudi Arabia and Indonesia, This gLobaL footprint highLights the Companys abiLity to address diverse market requirements across both deveLoped and emerging economies,

The Companys product portfolio caters to diverse end-use appLications, incLuding PVC pipes, fittings, profiLes, eLectricaL wires, SPC fLoor tiLes, roofing and packaging, Backed by a cLear strategic focus, ethicaL governance practices and vaLues- driven Leadership, PLatinum industries remains weLL positioned to pursue sustainabLe growth whiLe deLivering consistent stakehoLder vaLue,

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Platinum Industries Ltd has been recognised as one of the Most Valuable Family Businesses in India. This recognition reflects the Companys continued focus on growth, sustainability and operational excellence, while setting new benchmarks within the industry and beyond.

Business Model.

The Companys business model, is anchored in operational exceLLence, sustainabiLity and a strong customer-centric approach, its advanced manufacturing facilities, coupLed with targeted investments in research and development, enabLe continuous enhancement of the product portfolio and process optimisation, PLatinum industries maintains rigorous quaLity controL standards whiLe ensuring fuLL compliance with appLicabLe environmental regulations, The business modeL aLso incorporates backward and forward Linkages, strengthening suppLy chain coordination and cultivating Long-term partnerships with suppliers and customers,

PVC Stabilizers

Non-Lead and Lead-Based Stabilisers

The non-Lead based stabiLiser portfolio comprises CaLcium, Zinc and organic stabiLisers, offering eco-friendLy alternatives to traditional Lead-based systems, These products are used across a range of manufacturing applications, including pLumbing and conduit pipes, foam boards, fLoor tiLes, technicaL profiLes, cabLes, gaskets and shoe soLes,

The Lead-based stabiLiser portfoLio comprises formuLations such as Lead One Pack, Booster Lead and Hybrid Low Lead, These products find wide appLication in pipes, profiLes, cabLe insuLation, footwear, roofing sheets and foam boards, in

addition to this, the segment remains an important part of the infrastructure, construction and eLectricaL sectors,

CPVC Additives

CPVC additives support the performance and processing requirements of CPVC and UPVC products by enhancing processing efficiency, thermaL stabiLity and structuraL integrity, These are appLicabLe for high-temperature water distribution systems, pLumbing pipes and industriaL fLuid handLing components,

Metallic Soaps

MetaLLic soaps, including caLcium, zinc, barium, aLuminium and magnesium stearates, constitute the major products within this category, These muLtifunctionaL additives are used as stabiLisers, Lubricants and reLease agents across diverse industries, Their appLications cover pLastics, rubber, coatings, pharmaceuticaLs and personaL care, reflecting the Companys technicaL capabiLities in serving niche industriaL requirements,

Lubricants

The Companys Lubricant range incLudes PE Wax, OPE Wax and speciaLised systems such as Lubpack, which pLay an important roLe in the PVC compounding process, These products heLp achieve better materiaL dispersion, minimise friction during processing and enhance the surface finish of extruded products, They are extensively used in pipe and profiLe extrusion, cabLe production and fiLm applications, with demand primarily driven by the packaging and eLectricaL industries,

Market Presence and Growth

The Company has continued to strengthen its presence across domestic and internationaL markets, supported by sustained revenue growth and increasing customer traction, internationally, the MiddLe East, North Africa (MENA) and Southeast Asia remain key markets for the Companys saLes, in india, PLatinum has estabLished a strong position in the PVC stabiLisers market, its domestic market presence is supported by a diverse product portfoLio comprising Lead-based and Lead-free stabiLisers, CPVC additives, metaL soaps, Lubricants and poLyoLefin additives,

Table representing the financial performance of the Company on Consolidated basis

Financial Performance Overview:

PLatinum industries delivered a strong top-Line performance in FY26, navigating a transitionary phase characterized by capacity scaLing, portfoLio diversification (particuLarLy into CPVC additives), and significant capex aLLocation toward internationaL expansion

Revenue & Gross Margins Analysis

Consolidated revenue grew by 14.8% YoY to ^4504.4 miLLion in FY26, LargeLy Led by voLume gains in core PVC stabiLizers and the rapid scaLing of the CPVC additive business, Gross margins remain constant at 30%,

Operating profitability (EBITDA) & Expenses trends

Consolidated EBITDA grew by 4.2% and stood at ^598.5 MiLLion in FY26 compared to ^574.3 miLLion in FY25 basis the revenue growth, However EBITDA margins softened by 130 bps to 13,3% (down from 14,6% in FY25), This drop was driven by higher empLoyee expenses, initiaL operational overheads for new pLants (PaLghar Unit II),

PBT, PAT Margins & Profitability

Net Profit (PAT) increased 3.7% YoY to Rs. 512.3 miLLion, PAT margins contracted sLightLy from 12,6% in FY25 to 11,4% in FY26, impacted by depreciation from newLy capitaLized assets, increased EmpLoyee Cost due to New Unit and Lower nonoperating income compared to the previous fiscaL year,

Working Capital Efficiency & Balance Sheet Strength

Working capitaL intensity remained moderate due to Strategic Sourcing of inventory, due to GeopoLiticaL ConfLict, Trade receivabLes expanded in Line with top-Line growth, with cash conversion cycLes staying within heaLthy sectoraL range, Further, Net Working CapitaL CycLe is moderated due to significant increase in SaLes in Last Quarter , resulting in higher receivabLes at the year end,

Key Financial Ratios - Consolidated

Capital Expenditure

Capital, expenditure undertaken by the Company in FY 2026

remains a key strategic priority for PLatinum Industries.

Rs. 376.22 miLLions spent as a capitaL expenditure during the

year, which was mostLy for setting up manufacturing faciLity.

Opportunities and Threats

Opportunities

• Government-Led Sectoral Growth The Companys growth is cLoseLy aLigned with developments in the agricuLture and infrastructure sectors. Increased budgetary aLLocations, poLicy support and infrastructure investments by the Government of India are expected to stimuLate demand and create sustained growth opportunities.

• Shift Toward Green Chemicals The chemicaL industry is witnessing a structural shift towards sustainabLe and environmentaLLy responsible soLutions by expanding its portfoLio of green chemistries and eco-friendLy additives.

• International Market Expansion Beyond strengthening its domestic presence, the Companys capability to manufacture high-quaLity, standards-compLiant products positions it weLL to expand across Southeast Asia, Africa and the MiddLe East.

• Advanced Manufacturing and Automation Continued investment in advanced manufacturing technoLogies, digitaL integration and process automation is expected to improve operationaL efficiency, enhance product quaLity, thereby reinforcing competitive advantage.

Threats

• Skilled Workforce Constraint An inabiLity to attract, retain or effectively manage a skiLLed workforce may adverseLy affect the Companys operational efficiency and couLd constrain its Long-term growth prospects.

• Competitive Pricing Pressure The Company operates in a highLy competitive environment. Intense competition may compress margins and chaLLenge market share if differentiation is not maintained.

Information Technology (IT)

Strengthening the Companys digitaL infrastructure remains a strategic priority. PLatinum Industries continues to invest in integrated technology systems to improve operational visibility, enabLe data-driven decision-making and ensure data security. PLatinum Industries is continuously enhancing its digitaL infrastructure by adopting advanced Information TechnoLogy (IT) soLutions to improve operational efficiency, strengthen decision-making, and safeguard criticaL business data. During FY 2025-26, the Company successfuLLy implemented SAP

ERP and a Human Resource Management System (HRMS), both of which are now fuLLy operational across aLL key functions. These pLatforms have streamLined processes in manufacturing, finance, suppLy chain and human resources, resuLting in greater efficiency, transparency, and controL. As part of its Long-term digitaL transformation strategy, PLatinum Industries is focused on creating a fuLLy integrated and automated business ecosystem. The Company pLans to further enhance its existing SAP ERP pLatform by integrating advanced systems and technoLogies that support end-to-end process automation. In paraLLeL, investments are being made in data anaLytics and artificial inteLLigence to deLiver actionabLe insights, optimize production pLanning, and strengthen customer engagement. The Company is aLso upgrading its digitaL infrastructure to expand mobiLe access to the Human Resource Management System (HRMS), enabLing empLoyees to conveniently manage attendance, Leave, payroLL, and other HR-reLated activities through mobiLe applications. AdditionaLLy, PLatinum is enhancing its video conferencing capabilities to improve communication quaLity, support seamLess coLLaboration across Locations, and increase productivity by reducing response times and enabLing faster decision-making. To ensure secure and uninterrupted operations, the Company maintains robust cybersecurity measures and undertakes reguLar IT infrastructure upgrades. Through this comprehensive technoLogy roadmap, PLatinum Industries is buiLding a future-ready digitaL enterprise with the

agiLity and scaLabiLity needed to thrive in a rapidLy evoLving business environment.

Human Resource Management

At PLatinum Industries, operational exceLLence and Longterm scaLabiLity are driven by the capabiLity and commitment of its workforce. Its human resource strategy is centred on attracting, developing and retaining a strong base of skiLLed and motivated professionals. To prepare the organisation for Larger- scaLe and expanding gLobaL operations, the Company has continued to invest in Leadership strength, taLent development and empLoyee engagement. Further to this, the organisation promotes a safe, incLusive and performance-driven workpLace that enabLes empLoyees to contribute effectively. It aLso conducted reguLar medicaL camps and heaLth check-ups for permanent empLoyees and contract workers across its manufacturing facilities. Guided by the principles of continuous improvement, transparency and empowerment, the Companys HR framework is focused on buiLding a workforce that refLects diverse perspectives and backgrounds.

Environment

PLatinum industries incorporates environmental responsibility into its operational processes and product development initiatives. The Company ensures sustainabiLity across its operations through focused measures in energy management, waste management and water management. As part of its waste management practices, it ensures the implementation of measures for the safe disposaL of hazardous waste. The Company aLso aLigns its resources to achieve Zero Liquid Discharge (ZLD) and adopt eco-friendLy stabiLisers. in addition, focused efforts continue to reduce water consumption and improve resource efficiency across its facilities. During the year, the Company marked WorLd Earth Day 2025 through initiatives that encouraged creativity, awareness and collaboration. it aLso observed WorLd Environment Day by organising tree pLantation drives, reaffirming its commitment to environmentaL stewardship and a cLeaner, greener future.

Social

PLatinum industries remains committed to supporting the deveLopment and upLiftment of the communities in which it operates, with a focus on sustainabLe and incLusive growth. The Companys CSR initiatives are centred on Education and Learning Access, HeaLthcare and WeLL Being, Community Development and Environment and SustainabiLity. During FY 2026, the Company carried out various CSR initiatives, including

the distribution of DiwaLi gifts to students and chiLdren from underserved communities.

in addition, the Company partnered with Urja SpeciaL SchooL to support chiLdren from marginalised backgrounds by providing them a pLatform to showcase their handcrafted DiwaLi products. These products were subsequently purchased by the Company, reflecting its commitment to promoting incLusivity and encouraging community-Led entrepreneurship.

Further to this, the Company extended support towards infrastructure development at Abhinav Shikshan Sansthan. This initiative incLuded assistance in the construction of boundary waLLs, instaLLation of fencing, renovation of cLassrooms and provision of safe drinking water facilities. These efforts underscore the Companys commitment to creating a secure and conducive Learning environment.

Governance

PLatinum industries maintains a robust governance framework designed to support sustainabLe growth and strengthen stakehoLder confidence. The Company promotes transparency and accountabiLity through strong internaL controLs and a weLL-defined whistLebLower mechanism. it remains compLiant with appLicabLe SEBi governance standards and statutory reguLations. This discipLined approach enabLes the Company to uphoLd high standards of corporate governance framework and reinforce stakehoLder trust.

Business Outlook

PLatinum industries remains focused on expanding production capacity and strengthening its technoLogicaL capabilities to support future growth. To advance its Long-term strategy, the Company is activeLy pursuing strategic coLLaborations and technicaL partnerships, whiLe showcasing its product portfoLio at Leading internationaL exhibitions to broaden market reach and engage new customers. The recent IPO, coupLed with strong revenue growth, positions the Company to capture additional market share and deLiver sustained vaLue to investors.

Risk Management

internal ControLs

PLatinum industries has established an internaL controL framework to safeguard its assets, ensure accurate financiaL reporting and maintain compLiance with LegaL and reguLatory requirements. Key eLements of the internaL controL system incLude

Comprehensive PoLicies and Procedures

• ReguLar internaL Audits

• Audit Committee Oversight

• Risk Management Framework

• Training and Awareness

Disclaimer

This Management Discussion and AnaLysis (MD&A) contains forward-Looking statements about PLatinums future performance, business strategies and growth opportunities. These statements reflect managements current expectations and are identified by words such as ‘anticipate, ‘beLieve ‘expect‘, ‘intend, ‘may, ‘pLan, ‘predict, ‘shouLd, ‘target and ‘wiLL. Forward-Looking statements invoLve risks and uncertainties that couLd cause actuaL resuLts to differ materiaLLy. These risks incLude economic conditions, reguLatory changes, market dynamics, competitive pressures, technoLogicaL advancements and other factors outLined in the Companys fiLings with reguLatory authorities. PLatinum does not undertake any obLigation to update or revise these statements except as required by Law. Readers are cautioned not to pLace undue reLiance on these forward-Looking statements made as of the date of this MD&A.