Radix Industries India Ltd Management Discussions

The financial statements have been prepared in accordance with the provisions of the Companies Act, 2013, the guidelines issued by the Securities and Exchange Board of India (SEBI), and other applicable statutory requirements. The Management accepts full responsibility for the integrity and objectivity of these statements, applying prudent estimates and judgments to ensure that they present a true and fair view of the Companys affairs. The financial statements have been prepared on a reasonable basis so that they reflect the substance of transactions and provide a reliable picture of the Companys state of affairs, profitability, and cash flows for the year.

ECONOMIC OVERVIEW

The global hair wigs and extensions industry continues to demonstrate strong growth momentum. In 2026, the market size has been estimated at USD 16.4 billion, with projections to reach USD 31.1 billion by 2033, representing a CAGR of 9.6 percent. This expansion is being fueled by rising consumer demand for both fashion and medical solutions to hair loss, including alopecia, chemotherapy?related hair loss, and postpartum shedding. Greater beauty consciousness, the influence of social media and celebrity trends, and technological advancements in wig design and fiber durability are further accelerating adoption. Human hair products continue to dominate revenue share due to their premium pricing and natural aesthetics, while synthetic wigs are gaining traction through innovations in heat?resistant and realistic fibers. The growth of e?commerce platforms, AI?powered virtual try?on tools, and globalization of supply chains has lowered barriers to access and expanded market penetration across regions.

GLOBAL INDUSTRY OVERVIEW

The industry is experiencing robust expansion worldwide, with North America accounting for nearly 40 percent of consumption and Asia?Pacific emerging as the fastest?growing region with a CAGR of over 10 percent. Human hair products hold a majority share of approximately 65 percent, driven by their authenticity and styling flexibility, while synthetic products are expanding rapidly due to affordability and improved quality. The industry is increasingly diversified by medical applications, online retail, and customization, with leading companies focusing on ethically sourced materials and sustainability. As health, technology, and beauty trends converge, the global hair wigs and extensions market is poised for continued growth.

Global Hair Wigs and Extensions Market Segmental Analysis

The market is segmented by product type into wigs and extensions, by hair type into human hair and synthetic hair, and geographically into North America, Europe, Asia?Pacific, the Middle East and Africa, and Latin America. Each segment is witnessing growth, with wigs dominating in fashion and entertainment applications, while extensions are increasingly popular among younger demographics for styling versatility.

Drivers of the Global Hair Wigs and Extensions Market

The evolving fashion landscape and heightened beauty awareness among consumers remain the primary drivers of demand. Hair wigs and extensions have transitioned from being occasional accessories to essential components of personal style, endorsed by celebrities and influencers. Rising incidence of hair loss conditions has also contributed significantly to market expansion, as individuals seek natural-looking solutions to restore confidence and appearance.

Restraints in the Global Hair Wigs and Extensions Market

Despite strong growth, the industry faces restraints from the increasing popularity of medical treatments such as hair transplants and the use of drugs like Minoxidil and Finasteride. These alternatives are gaining traction among individuals seeking permanent solutions to hair loss, which may limit the growth potential of wigs and extensions in certain segments.

Market Trends of the Global Hair Wigs and Extensions Market

A notable trend is the rising preference for human hair wigs and extensions compared to synthetic alternatives, as they provide a more authentic appearance and allow for styling and coloring similar to natural hair. At the same time, there is growing demand for sustainable and ethically sourced products, reflecting consumer awareness of environmental and social responsibility.

OPERATIONS:

The human hair wigs and extensions segment is expected to gain considerable market share due to its superior quality, longevity, and likeness to natural hair. Raw materials are primarily sourced from China and India, with rural donors providing untreated, high?quality hair that is in high demand globally. Management is actively exploring new markets and pursuing large export orders to strengthen the Companys international presence.

FUTURE OUTLOOK:

The human hair wigs and extensions segment will gain considerable market share in the hair wigs and extensions market. When compared to synthetic hair wigs and extensions, human hair wigs and extensions are extremely popular due to their likeness to genuine hair and superior product quality and longevity. Raw materials for human hair wigs and extensions are primarily supplied by China and India.

Furthermore, hair from donors in these countries rural areas is in high demand because the hair is of good quality and has not been exposed to harsh chemicals or colors. During the projection period, this rising need will propel the segment forward. Management is actively considering to explore new markets and to bag big orders in the overseas market.

OPPORTUNITIES & THREATS

The Company benefits from strong demand for Indian hair in foreign markets, offering significant export potential. However, procurement challenges remain, as hair must often be purchased in bulk when available, requiring substantial capital investment. Opportunities lie in the global preference for Asian hair, which grows faster and has greater elasticity, making it highly sought after in countries such as China, Brazil, Spain, Korea, the UK, Hong Kong, Indonesia, Italy, Austria, and Germany. Threats include competition from synthetic hair, the presence of unorganized players, dependency on overseas markets, and normal competitive pressures.

SEGMENT WISE / PRODUCT WISE PERFORMANCE:

The Companys hair product segment generated revenue of 5140.96 Lacs during FY 2025-26, compared to 4834.26 Lacs in the previous year, with net profit after tax rising to 319.70 Lacs from 262.73 Lacs.

The industry has previously faced threats from synthetic hair, which was associated with allergic reactions and health concerns. Current risks include competition from unorganized players, reliance on overseas markets, and general competitive pressures.

INTERNAL CONTROL SYSTEM AND ITS ADEQUACY

The Company maintains a robust internal control system designed to safeguard assets and ensure accuracy of accounting data. A well?defined organizational structure with clear functional authority and approval limits is in place, supported by a strong compliance reporting system. Internal controls are updated periodically to align with regulatory requirements, enabling effective monitoring of employee adherence to internal procedures and external guidelines.

Source: https://www.grandviewresearch.com/industry-analysis/hair-wigs-extensions-market-report?utm_source=copilot.com

FINANCIAL PERFORMANCE WITH RESPECT TO OPERARTIONAL PERFORMACE:

The highlights of overall performance are as follows

(Rs in Lacs)

Particulars	2025-26	2024-25
Total Income	5140.96	4834.26
Total Expenses	4712.52	4482.16
Profit Before Taxation	428.44	352.10
Profit after Tax	319.70	262.73
Earnings per Equity share - Basic & Diluted	2.13	1.75

KEY FINANCIAL RATIOS:

S.No	Particulars	2025-26	2024-25	% change	Reasons in case of variation more than 25%
1	Debtors Turnover	24.23	21.63	12.02%	Due to improvement in operating cycle and repayment of borrowed funds during the year the current ratio, Inventory turnover ratio and Interest coverage ratio has been improved when compared to previous year
2	Inventory Turnover	5.18	2.10	146.67%
3	Debt to Equity Ratio	0.00	0.00	NA
4	Interest Coverage Ratio	44.64	11.59	285.16%
5	Current Ratio	206.80	155.08	33.35%
6	Operating Profit Margin	8.48	7.84%	16.32%
7	Net Profit Margin	6.33	5.44%	16.23%
8	Return on Net Worth	14.48	13.20%	9.77%

PERSONNEL:

Human wealth is the ultimate wealth in for any industry. The Company recognizes this fact and understands that employees are one of the most important sources for sustained growth of any business. Quality personnel delivering their optimum potential for the organization is the key differentiator. The Company maintained good relations with its employees and there was no unrest in the Company at any point of time.

Industrial relations in the organization continued to be cordial and progressive.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/ INDUSTRIAL RELATIONS FRONT INCLUDING NUMBER OF PEOPLE EMPLOYED:

There were no material developments in the human resources of the Company and in the number of people employed in the Company

HEALTH AND SAFETY:

The Company places considerable emphasis on health and safety throughout its operation and displays commitment to ensure the high standards being maintained in compliance with applicable laws and regulations.

FORWARD LOOKING / CAUTIONARY STATEMENT:

Certain statements in the Management Discussion & Analysis Report detailing the Companys objectives, projections, estimates, expectations or predictions may be forward looking statements within the meaning of applicable securities laws and regulations. These statements being based on certain assumptions and expectation of future event; actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting domestic demand supply conditions, finish goods prices, changes in Government Regulations and Tax regime etc. The Company assumes no responsibility to publicly amend, modify or revise any forward- looking statements on the basis of subsequent developments, information or events.

	BY THE ORDER OF THE BOARD
	For Radix Industries (India) Limited
	Sd/-
	G. Raghu Rama Raju
	Chairman & Managing Director
Place: Tanuku	(DIN: 00453895)
Date : 20.08.2026