Ravi Leela Granites Ltd Management Discussions

[Pursuant to Regulation 34 read with Para B of Schedule V of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015]

The Management at Ravileela Granites Limited (Ravileela/ The Company) is pleased to present the Management Discussion and Analysis Report which provides an insight of the Companys business, Industry structure, developments, outlook, opportunities, concern areas and performance of the Company with respect to the operations and other relevant information. This Report forms part of the compliance report on Corporate Governance.

Business of the Company:

Ravileela Granites was founded in 1990 with a simple idea that the world deserved nothing less than the best Granites that is available in the mines around the states of Telangana and Andhra Pradesh and over the period, Company has gained recognition for its dedication to producing top-tier granite products. The Companys unwavering focus on quality control and adherence to international standards have set it apart in a competitive market. Its commitment to quality has resulted in a loyal customer base. Ravileela has grown significantly in terms of quality, volume, diversity, and constantly striving for the best. Its plant, is located on Prakasam District, Andhra Pradesh,.

Ravileela continues to select a wide and exotic bouquet of granites in a spectrum of combinations to go well with all combinations and interiors, and is capable of effortlessly producing superior quality granite keeping with its motto of nothing but excellence.

The Company has recognized the global demand for high-quality granite and has expanded its operations beyond US to the European market establishing a strong presence in Central and Eastern Europe. This strategic move has solidified its position as a global player.

A. Economic Overview

• Executive summary

Over the last three years the Company has deliberately rebalanced exports toward Europe, building direct distributor relationships and project pipelines. As a result, the recent U.S. tariff shock has only a minimal direct impact on our order book and pricing, while our European exposure benefits from stable construction activity and easing freight costs.

• Global Macro Environment:

Growth: The IMFs latest update projects global GDP growth around ~3.0% in 2025 and 3.1% in 2026, with risks from trade frictions and uneven disinflation.

Trade policy: In August 2025, the U.S. raised tariffs to as high as 50% on Indian goods in retaliation for Indias Russian oil purchases; analysts estimate the effective average could be lower owing to exemptions, but the headline rate is disruptive for labour-intensive exports.

Freight & logistics: Ocean rates have been normalizing. Drewrys World Container Index fell to ~$2,119/FEU (28 Aug 2025) after sequential declines, improving cost visibility for exporters. Bulk indicators like the Baltic Dry Index have also eased in early September.

Implications for Ravileela

Moderate global growth plus lower container spot rates support our delivery reliability and margin recovery.

• About the Company:

Ravileela Granites Limited ("Ravileela" or "the Company") was established in 1990 with the vision of delivering the finest granite sourced from Telangana and Andhra Pradesh. Over three decades, the Company has built a strong reputation for quality, precision, and international standards, serving a loyal customer base across multiple geographies.

The Companys manufacturing unit in Prakasam District, Andhra Pradesh, is equipped to process a wide portfolio of exotic granite varieties catering to architectural, residential, and memorial applications. With exports initially concentrated in the US, Ravileela has successfully diversified into Central and Eastern Europe, strengthening its position as a global supplier of premium granite slabs and blocks.

Business Practices:

• Quality Control and Assurance: The Company has implemented rigorous quality checks at every stage of production which ensures compliance with industry standards and specifications and regularly assesses product quality, addressing any deviations promptly.

• Sustainable Sourcing and Environmental Responsibility: The Company sources raw materials sustainably, considering environmental impact and has invested in eco-friendly technologies and waste management. Additionally it promotes responsible quarrying practices.

• Market Research and Diversification: The Company continuously analyzes market trends and customer preferences and explores new product lines to diversify offerings. It easily adapts to changing market demands and explore export opportunities.

• Management Philosophy

Ravileelas management philosophy revolves around three core principles:

• Quality Assurance: Prioritize delivering high-quality granite products. Ensure rigorous quality control processes at every stage of production, from sourcing raw materials to final delivery. Consistently meet or exceed customer expectations to build trust and reputation.

• Sustainability: As a granite manufacturer, embrace sustainable practices. Minimize environmental impact by optimizing resource usage, recycling waste, and exploring eco-friendly alternatives. Show commitment to responsible business practices.

• Customer-Centric Approach: Place customers at the core of your business. Understand their needs, preferences, and pain points. Strive to exceed their expectations by delivering personalized solutions and exceptional service.

• Future Outlook

As Ravileela enters its fourth decade in the industry, it remains poised for accelerated growth, supported by strong domestic and global demand. Furthermore, manufacturers are prioritizing quality and the adoption of cutting-edge technologies to meet the demands of export markets. However, challenges arise from persistent inflation in several countries, and elevated freight costs. Additionally, escalating geopolitical tensions have the potential to disrupt the supply chain in the future and may adversely impact exports.

Ravileela Granites journey as a premium processor of granite for three decades exemplifies its commitment to quality, sustainability, and customer satisfaction. It stands as a testament to the companys enduring legacy in the Indian granite industry.

In the longer term, the Indian granites industry is poised to emerge as a global hub, leveraging its manufacturing prowess, skilled and adaptable workforce and cost advantages. With a strong focus on technology, product assortment, innovation and quality, we stand in a good position to emerge as a leader in the lucrative exports market.

Base case (next 12–18 months)

• Demand: Stable to modest growth in European Union (EU) architectural stone as construction normalizes; U.S. volumes choppy but premium segments remain addressable.

• Pricing: Natural stone prices are broadly steady; selective price increases are possible where engineered-stone alternatives face restrictions.

• Costs: Freight favorable vs. 2023 peaks; continue to contract index-linked or fixed-window ocean rates.

Performance during the year:

During the financial year ended on 31st March 2025, the Companys total income increased by from Rs. 3,393.29 Lakhs in the previous financial year to Rs. 4,246.65 lakhs. The total net loss incurred by the Company during the financial year was Rs. 375.12 Lakhs.

FY 2024-25 was a year of gradual recovery for the Company. Despite challenges in logistics and fluctuations in freight costs, the Company demonstrated resilience in managing operational efficiencies. The ongoing global supply chain disruptions slightly impacted delivery timelines, but strategic planning mitigated the overall effect on revenue.

Exports continue to be the major contributor to the Companys revenue, accounting for over 98% of total income. The Company exports to more than 5 countries, enabling diversification of market risks. The demand for certain unique shades of granite from India remains strong and relatively inelastic, providing a competitive edge in global markets.

The Company remains focused on expanding its export portfolio and gradually increasing its footprint in the domestic market. Efforts to optimize production and cost efficiencies are expected to further strengthen the Companys performance in the coming years.

Opportunities and Threats:

Ravileela Granites has established itself as a prominent player in the international granite industry, boasting an impressive three-decade ++ track record of excellence in processing and delivering premium granite products. Over the years, the company has consistently upheld its commitment to quality, innovation, and sustainability, earning a commendable reputation both domestically and on the global stage. The upcoming year holds abundant opportunities for the granites benefiting both the Company and the Industry as a whole.

Moreover, ongoing urbanization in India will continue to spur demand for residential and commercial construction, consequently increasing the need for building materials.

Opportunities include the following:

• Growing Demand in Emerging Markets: The rapid urbanization and infrastructure development in emerging economies, particularly in Asia and Africa, present substantial growth opportunities for granite producers.

• Expansion in Renovation and Remodeling Sectors: In developed markets like the US and Europe, there is a growing trend toward home renovation and remodeling, which drives demand for granite countertops, flooring, and decorative applications.

• Sustainability: With increasing global awareness of environmental impact, there is a rising demand for ethically sourced and sustainable granite products, providing an opportunity for companies that can meet these standards.

• Monument/heritage, sustainability, engineered stone substitutions

Some of the threats are as follows:

• Competition from Alternative Materials: Engineered stones, such as quartz, and other synthetic materials are gaining popularity due to their consistency, availability in a range of colors, and lower maintenance, posing a threat to natural granite.

• Economic and Political Uncertainties: Fluctuations in global economic conditions, along with geopolitical tensions and trade restrictions, can significantly impact demand and profitability, especially for export-dependent producers.

• Environmental Regulations: Stricter environmental regulations and the need for compliance with international standards can increase operational costs and require substantial investment in sustainable practices.

• Tariffs, labor cost inflation, synthetic competition, logistics, regulatory are some of the threats.

Risks and Concerns:

Risks are an inherent part of business which cannot be avoided but its robust identification and management can overcome its effects.

The Company has in place a designated Risk Management policy which is designed to overcome adverse industry fluctuations to successfully flourish the business at a reputable pace. The Company provides updates on risk management to the Audit Committee of the Board of Directors of the Company on a regular basis.

A comprehensive and integrated risk management framework forms the basis of all the de-risking efforts of the Company. Formal reporting and control mechanisms ensure timely information availability and facilitate vigilant and in-time risk management.

The following are the inherent risks associated with the business of the Company:

• Market Volatility: The granite industry is susceptible to fluctuations in demand due to economic downturns, particularly in key export markets.

• Supply Chain Disruptions: The industrys reliance on global supply chains makes it vulnerable to disruptions caused by geopolitical events, natural disasters, or pandemics.

• Environmental Impact: The environmental impact of quarrying and processing poses a risk, especially with increasing global scrutiny and regulatory pressures. Failure to adopt sustainable practices can lead to reputational damage and financial penalties.

• Currency Fluctuations: As a major exporter, the Indian granite industry is exposed to risks from currency fluctuations, which can affect profitability

• Competitive landscape: There exists a lot of competition in the granites industry and to ensure survival in this competitive market, the Company developed strategies to maintain market share in the market.

• The scarcity of skilled manpower is a common challenge in the manufacturing sector. Company recognizes the importance of a skilled workforce for efficient production and quality control. The company invests in training, talent development, and retention strategies to address this constraint.

Segment Wise Performance:

As the Company is dealing in only one product, the same is not applicable.

Internal Control systems & adequacy:

To manage the risks associated with the granite industry, robust internal control systems are essential. These controls include strict compliance with environmental regulations, regular audits of quarrying and processing operations, and continuous monitoring of market trends and customer preferences. Adequate financial controls ensure that the company remains profitable and can withstand market fluctuations. Additionally, implementing advanced technology systems for inventory and supply chain management can help in optimizing operations and reducing costs

Discussion on Financial Performance with Respect to Operational Performance:

The financial performance of companies in the granite industry is closely tied to their operational efficiency and market positioning. Companies that have invested in modern technologies and sustainable practices tend to perform better financially due to higher product quality, lower operational costs, and increased market demand for sustainable products. Moreover, maintaining a diverse product portfolio and exploring new markets can mitigate risks and contribute to stable revenue growth.

In recent years, companies that have focused on expanding their export markets, particularly in North America and Europe, have seen higher profit margins due to the premium prices these markets command. However, the cost of compliance with environmental regulations and the investment required for technology upgrades can impact short-term profitability, although these are essential for long-term sustainability and competitiveness.

In conclusion, while the granite industry faces several challenges, companies that adopt a proactive approach in managing risks, embracing innovation, and focusing on sustainability are well-positioned to achieve strong financial performance and operational success in the global market.

Outlook:

The outlook for the granite industry remains positive, with expected steady growth driven by ongoing urbanization, infrastructure development, and a robust remodeling market in developed economies. However, industry must navigate challenges related to competition from alternative materials and the need for sustainable practices. Advancements in technology and a focus on innovation will be crucial for maintaining competitiveness and meeting evolving consumer preferences.

Ravileela is positioned to leverage its global market access, reputation for quality, and diversified product mix. With a growing presence in Europe and steady demand from Asia, the Company remains confident of sustained growth in FY 2025-26, while continuing to monitor macro-economic and trade-related risks

Significant changes in the Key financial ratios, Net worth and other parameters:

Ratios
Particulars	2024-25	2023-24
Key Profitability Ratios
Operation Profit Margin
Net Profit Ratio	-0.08	-0.02
PAT / Networth (ROE)	-0.26	-0.04
Key capital structure ratios
Net Debt / Equity	4.23	3.40
Current Ratio	1.00	1.14
Debt service Coverage Ratio	0.03	0.29
Debtors Turnover Ratio	2.52	3.05
Stock Turnover Ratio	8.69	5.63

Information Technology

All aspects of Companys business, including production, market research, product development and distribution network, are highly automated for higher operational efficiency, boost productivity, and optimize costs. It uses technically advanced programs to eliminate redundancies, and improve operational efficiencies and productivity. By automating routine tasks, employees can focus on value-added activities and by harnessing technology; we aim to remain competitive, efficient, and customer-centric in an ever-evolving industry.

Quality Culture

Our unwavering commitment to delivering superior quality, technologically advanced, and innovative products has allowed us to cultivate strong and lasting relationships with our customers. By prioritizing innovation, building brand equity, embracing cutting-edge technology, adhering to international quality standards, and investing in research and development, we continuously enhance customer loyalty. As a result, our products have gained widespread acceptance not only in the Indian market but also internationally.

Human Resources

We firmly believe that human capital is a cornerstone of business growth. Our skilled and dedicated workforce has been instrumental in our sustained success and expansion. Our human resources policies prioritize employee well-being, fostering a safe, conducive, and productive work environment. This approach not only drives sustainable business growth but also enhances employee satisfaction and motivation.

Our commitment to employee satisfaction goes hand in hand with our business sustainability. We believe that investing in our employees ultimately pays dividends in terms of long-term growth and customer loyalty.

Cautionary Statement:

Statements made in the Management Discussion and Analysis section describe the Companys objectives, projections, expectations and estimations, which may be forward-looking in nature. These statements are made within the meaning of applicable securities laws and regulations. Past performance of the Company is not necessarily indicative of its future results, and actual results could differ materially from those expressed and implied. Important factors that could make a difference to the Companys operations include, among others, economic conditions affecting demand/supply and price conditions, variation in prices of raw materials, changes in Government regulations, tax regimes, and economic developments and other incidental factors. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements based on any subsequent development, information or events.

Place: Hyderabad	For and on behalf of the Board of
Date: 13th August 2025	Ravileela Granites Limited
Sd/-	Sd/-
Parvatha Samantha Reddy	Parvat Srivinas Reddy
Whole-time Director and CFO	Director
DIN: 00141961	DIN:00359139
Add: H-No-7-1-214/12	Add: H-No-7-1-214/12
Ameerpet, Begumpet,	Ameerpet, Begumpet,
Secunderabad-500016	Secunderabad-500016
Telangana, India	Telangana, India