Ravi Leela Granites Ltd Management Discussions

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

The Management of Ravileela Granites Limited (Ravileela/ the Company) is pleased to present the Management Discussion and Analysis Report for the financial year ended 31 st March, 2026. This Report provides an overview of the Companys business, industry structure, developments, outlook, opportunities, concerns, operational performance and financial performance. It should be read together with the Companys audited financial statements and other disclosures forming part of the Annual Report.

Business of the Company

Ravileela Granites Limited was incorporated in 1990 and has over three decades of experience in the manufacture, processing and export of granite slabs and related products. Its manufacturing operations are situated in Prakasam District, Andhra Pradesh, and the Company sources granite from established quarrying regions in Andhra Pradesh, Telangana, Madurai, Chhattisgarh, Ongole, Madanpalle, Chittoor, etc.

The Company focuses on quality, product consistency, finishing and adherence to customer specifications. Its product portfolio comprises a variety of natural granite slabs and tiles suited to residential, commercial, architectural, memorial and other applications. The Company continues to serve overseas customers while evaluating opportunities to deepen its presence in selected domestic and international markets.

During the year under review, the Company recorded a marked improvement in its operating and financial performance. Net sales stood at ? 57.40 crore for FY 2025-26, as against ? 41.24 crore in the previous financial year, reflecting a growth of approximately 39%. Total income for the year increased to ^ 61.20 crore, compared to ? 42.47 crore in FY 2024-25.

The Company reported a profit after tax of ? 9.93 crore for FY 2025-26, as against a net loss of ^ 3.21 crore in the corresponding previous year, marking a significant turnaround in profitability driven by the diversification of business operations into newer markets undertaken during the year

A. Economic Overview

• Executive summary

FY2025-26 was characterised by resilient domestic demand, continued geopolitical uncertainty, changes in trade policy, elevated logistics risks and a gradual shift in global investment toward technology and infrastructure. Against this backdrop, the Company delivered a strong recovery in revenue and profitability. Going forward, management remains focused on market diversification, disciplined working-capital management, operational efficiency, product quality and strengthening relationships with overseas customers.

• Global Economy:

According to the International Monetary Funds July 2026 World Economic Outlook Update, global growth is projected at 3.0% in 2026 and 3.4% in 2027. The global outlook remains uneven: the economic impact of the conflict in the Middle East is weighing on energy-importing and vulnerable economies, while technology-related investment is supporting activity in economies integrated into global technology value chains. Global headline inflation has also been revised upward to approximately 4.7% for 2026, reflecting the renewed energy shock. (Source: IMF, World Economic Outlook Update, July 2026.)

For a granite exporter, the principal implications of this environment are continued sensitivity to construction cycles in end markets, fluctuations in freight and energy costs, foreign-exchange movements, trade restrictions and the purchasing power of customers. At the same time, infrastructure spending, urbanisation, renovation activity and demand for durable natural materials provide a supportive medium-term backdrop.

• Global Macro Environment:

Growth: Global economic growth is expected to remain positive over the medium term, with the IMF projecting 3.0% growth in 2026 and 3.4% in 2027. The recovery is expected to be supported by technology-led investment and private-sector adaptability, although geopolitical and trade-policy risks remain significant.

Trade policy: International trade continues to be affected by tariff changes, trade negotiations and geopolitical realignments. For Indian stone exporters, this reinforces the need to diversify customer and geographic exposure and to maintain flexibility in pricing and logistics arrangements.

Freight & logistics: International shipping remains exposed to fuel-price volatility, route disruptions and war-risk surcharges. The disruptions experienced during FY 2025-26, particularly in connection with the West Asia conflict, demonstrate the importance of alternative routing, freight-cost monitoring and appropriate contractual arrangements with customers and logistics providers.

Foreign exchange: Export-oriented businesses remain exposed to movements in the USD/INR and EUR/INR exchange rates. The Company continues to monitor currency exposure and align foreign-currency receivables, payments and other exposures with its risk-management framework.

• Indian Economy and Outlook

India remained one of the fastest-growing major economies during FY 2025-26. The domestic economy benefited from resilient consumption, infrastructure investment, manufacturing activity and continued formalisation. The domestic construction and real-estate sectors remain important demand drivers for natural stone and building materials.

The outlook for FY 2026-27 remains constructive, although external risks have increased because of geopolitical tensions and energy-price volatility. The Reserve Bank of India has maintained a cautious policy stance while monitoring inflation and growth. Recent assessments place Indias FY 2026-27 real GDP growth outlook in the mid- 6% range, supporting continued domestic economic activity.

India macro environment

Indias resilient domestic demand provides a useful counterbalance to fluctuations in export markets. For the Company, domestic infrastructure, housing, hospitality and premium residential construction provide opportunities to diversify revenue while maintaining its established export business.

B. Granite Industry Outlook:

• Global Granite Industry

Granite remains an important natural building and decorative material because of its durability, weather resistance, distinctive appearance and long service life. It is used in flooring, wall cladding, countertops, facades, staircases, paving, monuments, memorials and other architectural applications.

Current industry estimates indicate that the broader global natural stone market continues to expand. Grand View Research estimates the global natural stone market at approximately USD 10.2 billion in 2024 and USD 11.2 billion in 2026, with a projected CAGR of approximately 5.8% for 2025-2030 and a forecast market size of approximately USD 14.1 billion by 2030. Granite represented the largest product segment in the cited market assessment. (Source: Grand View Research, Natural Stone Market, updated July 2026.)

The medium-term industry outlook is supported by urbanisation, infrastructure investment, residential and commercial construction, renovation and remodeling, premium interior applications and the increasing preference for durable natural materials.

The global environment presents both opportunities and risks for the Company. Demand for natural stone remains supported by construction, renovation, premium residential development, hospitality and memorial applications. However, geopolitical developments, freight disruptions, tariff changes and currency volatility can affect landed costs, order conversion and margins. Accordingly, the Companys approach remains centred on geographic diversification, customer relationships, efficient production, disciplined pricing and active monitoring of logistics and foreign-exchange exposures.

• Indian Granite Industry

India remains a major global producer and exporter of granite. The Indian industry benefits from extensive geological resources, a wide variety of colours and patterns, established processing capabilities, skilled manpower and a large domestic construction market.

Recent industry data indicate that Indias granite exports declined in volume and value between FY 2022 and FY 2025, reflecting changes in global demand and the increasing attractiveness of domestic consumption. According to industry data cited in a 2025 SEBI-filed industry analysis, exports declined from approximately 5,186 KT in FY 2022 to 3,373 KT in FY 2025, while export value declined from approximately? 4,689 crore to? 3,272 crore. China continued to account for the largest share of Indias granite exports, with other important destinations including Taiwan, Algeria, the United States and Poland.

At the same time, the domestic market continues to offer a meaningful growth avenue as infrastructure, housing, commercial development and renovation activity expand. The Company therefore sees value in maintaining a balanced approach between export markets and domestic opportunities.

The Companys manufacturing base in Andhra Pradesh and its access to established granite sourcing regions position it to participate in both domestic and export demand. The management intends to use the strength of domestic demand as a complementary market while continuing to develop overseas relationships and higher-value applications.

C. Drivers of Growth Growing Construction Industry:

Urbanisation, residential development, commercial construction, hospitality projects and infrastructure spending remain key demand drivers for granite. The use of natural stone in premium residential and commercial applications is supported by its durability, aesthetic appeal and relatively low maintenance over its useful life.

Increasing Investment in Infrastructure Development:

Continued investment in roads, public infrastructure, urban redevelopment, transport facilities, hospitality and institutional projects is expected to support demand for durable construction and architectural materials. Indias expanding infrastructure pipeline is therefore an important structural driver for the domestic natural stone industry.

Industry dynamics - Natural stone vs. substitutes

Natural granite competes with engineered stone, quartz, ceramic, porcelain and other synthetic or composite materials. Substitutes can offer consistency, design flexibility and, in some applications, lower maintenance. Granite, however, continues to benefit from its natural variation, durability, premium aesthetic and suitability for heavy- use applications.

The industry is also increasingly influenced by sustainability considerations. Natural stones long service life and low maintenance requirements can support its positioning in projects where lifecycle performance and durable materials are prioritised. Technology in cutting, calibration, finishing, digital design and project specification is expected to remain an important competitive factor.

D. About the Company

• Business Operations:

Ravileela Granites Limited is operating in the granite industry for more than three decades. The Company processes granite sourced principally from established quarrying regions in Andhra Pradesh and Telangana and supplies processed granite products to customers in India and globally.

The Companys manufacturing unit in Prakasam District, Andhra Pradesh, supports processing of a range of granite varieties and finishes. The Company seeks to compete through quality, product range, customer responsiveness, manufacturing efficiency and established export relationships.

• Management Philosophy

Ravileelas management philosophy continues to be guided by three core principles:

• Quality Assurance: Deliver consistent, high-quality granite products while maintaining rigorous quality control and adherence to customer specifications.

• Sustainability: Improve resource utilisation, reduce avoidable waste and promote responsible business and environmental practices.

• Customer-Centric Approach: Build long-term customer relationships through product quality, responsiveness, reliable delivery and customised solutions.

• Future Outlook

The Companys medium-term outlook remains constructive. The turnaround achieved in FY 2025-26 provides a stronger base for the next phase of growth, while the industry continues to benefit from construction, renovation, infrastructure and premium architectural applications.

Management expects the business environment to remain competitive and volatile. Accordingly, the Company intends to focus on profitable growth rather than volume alone, with emphasis on product mix, customer quality, geographic diversification, operating efficiency, cash generation and prudent financial management.

The Company does not publish a formal five-year revenue or profit forecast. Accordingly, the future outlook are industry-market indicators and should not be construed as Company forecasts or guidance.

Base case

• Demand: Demand remained continuous but uneven in overseas architectural, residential and memorial applications.

• Pricing: Pricing is expected to remain competitive, with scope for better realisation in differentiated colours, premium finishes and value-added products.

• Costs: Freight, energy, labour, raw material and financing costs will remain important margin variables. Cost discipline and working-capital efficiency will therefore remain priorities.

• Market mix: The Company intends to continue developing overseas markets while selectively increasing domestic B2B opportunities.

Upside levers

• Expansion of customer relationships in Europe and other selected international markets.

• Higher share of value-added, customised and project-oriented products.

• Improved utilisation of manufacturing capacity and better absorption of fixed costs.

• Greater participation in domestic infrastructure, hospitality and premium residential projects.

• Improved operating cash flows through stronger receivables and inventory management.

Downside risks & mitigations

• Policy shocks (tariffs/sanctions): Maintain geographic diversification and monitor destination-market trade policies.

• Foreign exchange volatility: Closely monitor foreign-currency exposures and use appropriate risk-management mechanisms where considered necessary.

• Logistics swings: Maintain multiple logistics options, negotiate appropriate freight arrangements and monitor route-specific disruptions.

• EHS/regulatory: Maintain appropriate environmental, health and safety controls and documentation.

• Demand volatility: Balance export opportunities with domestic market development and focus on diversified customer relationships.

• Performance during the year:

During FY 2025-26, the Company delivered a strong turnaround. Net sales increased to Rs. 57.40 crore from Rs. 41.24 crore in FY 2024-25, representing growth of approximately 39.2%. Total income increased to approximately Rs. 61.20 crore from Rs. 42.47 crore. Operating profit improved to approximately Rs. 13.15 crore from a marginal operating loss in the previous year, while profit before tax improved to approximately Rs. 12.09 crore from a loss of Rs. 3.75 crore. Profit after tax stood at Rs. 9.93 crore compared with a loss of Rs. 3.21 crore in FY 2024-25.

The improvement in profitability was supported by higher revenue, better operating leverage and lower finance costs. Interest expense declined from approximately Rs. 3.01 crore in FY 2024-25 to Rs. 2.91 crore in FY 2025-26. The Company will continue to focus on maintaining margins through disciplined sourcing, production efficiency, product mix and working-capital management.

• Opportunities and Threats:

The Companys established presence in granite processing and export provides a platform for growth, while the turnaround in FY 2025-26 strengthens its financial position. The key opportunities and threats remain closely linked to global construction cycles, customer preferences, logistics and trade conditions.

Opportunities include the following:

• Expansion in Renovation and Remodeling Sectors: Mature markets continue to generate demand for renovation, refurbishment, countertops, flooring and decorative applications.

• Sustainability: Natural stones durability and long service life can support demand where customers prioritise lifecycle performance and sustainable material choices.

• Value-added and project applications: Customised finishes, cut-to-size products, memorial and monument applications and architectural specifications can provide opportunities for better realisation.

Some of the threats are as follows:

• Competition from Alternative Materials: Engineered stone, quartz, ceramics, porcelain and other substitutes continue to compete for architectural and interior applications.

• Economic and Political Uncertainties: Global economic cycles, geopolitical tensions, sanctions and trade restrictions can affect demand and logistics.

• Environmental Regulations: Increasing environmental and compliance requirements may increase operating and documentation costs.

• Volatility: Tariffs, labour cost inflation, freight volatility, currency movements and regulatory changes may affect margins and order conversion.

• Risks and Concerns:

Risks are an inherent part of the Companys business. The Companys approach is to identify material risks, monitor them periodically and implement appropriate mitigation measures. Risk-management matters are reviewed through the Companys governance framework and are reported to the relevant Board/Committee, as applicable.

• Market Volatility: Demand for granite can fluctuate with construction cycles and economic conditions in key markets.

• Supply Chain Disruptions: Quarrying, transportation, port operations and international shipping maybe affected by geopolitical events, natural disruptions and logistics constraints.

• Environmental Impact: Granite processing and quarrying activities require appropriate environmental management, including dust, water, waste and regulatory controls.

• Currency Fluctuations: Export receipts and foreign-currency exposures can affect realised margins when exchange rates move materially.

• Competitive landscape: The industry remains fragmented and competitive, requiring continuous attention to quality, pricing, product range and customer service.

• Skilled manpower: Availability and retention of skilled personnel remain important to maintaining production quality and efficiency.

• Financial and working-capital risk: Receivables, inventory and debt-servicing requirements require continued monitoring, particularly during periods of rapid growth.

• Segment Wise Performance:

The Company is primarily engaged in a single business segment, namely manufacture, processing and export of granite products. Accordingly, separate segment-wise performance information is not applicable beyond the disclosures contained in the audited financial statements.

• Internal Control systems & adequacy:

The Company maintains internal financial and operational controls appropriate to the nature and scale of its business. These controls cover authorisation of transactions, procurement, inventory, production, sales, receivables, payments, financial reporting and compliance.

The Company continues to monitor internal controls through management review and the Companys audit and governance processes. The objective is to ensure reliability of financial information, safeguarding of assets, prevention and detection of errors and fraud, operational efficiency and compliance with applicable laws and regulations.

• Outlook:

The outlook for the granite and natural stone industry remains positive over the medium term, although near-term conditions are expected to remain volatile. Current market estimates indicate that Indias granite market was approximately USD 368.2 million in 2026 and is projected to grow at approximately 6.4% CAGR through 2033. On the same growth assumption, the indicative market trajectory for the next five years is set out below. These are industry estimates and are not forecasts of Ravileelas revenue.

Year	India Granite Market (USD million)	Basis
2026	368.2	Base estimate
2027	391.8	Indicative, 6.42% CAGR
2028	417.0	Indicative, 6.42% CAGR
2029	443.8	Indicative, 6.42% CAGR
2030	472.3	Indicative, 6.42% CAGR
2031	502.6	Indicative, 6.42% CAGR

Source: Grand View Research, India Granite Market Outlook 2026-2033. 2027-2031 values are mathematical indications derived from the published 2026 estimate and 6.42% CAGR; they are not separately published forecasts.

Ravileela is positioned to benefit from the expected growth in construction and architectural applications through its established processing capabilities, export experience and customer relationships. The Company will continue to monitor global trade, logistics, currency and geopolitical developments while focusing on profitable growth and operational resilience.

Strategy priorities Financial Year 2027:

• Export market diversification: deepen relationships in selected European and other overseas markets while reducing excessive dependence on any single destination.

• Product and specification development: increase focus on differentiated colours, finishes, cut-to-size and project- oriented applications.

• Improve capacity utilisation, production planning, yield, inventory discipline and cost control.

• Selectively develop infrastructure, hospitality, commercial and premium residential opportunities in the domestic market.

Improve receivable collection, inventory turns and cash conversion while managing financing costs.

The principal strategic insight from FY 2025-26 is that revenue growth, operating leverage and disciplined cost management can materially improve profitability in a capital- and working-capital-intensive processing business. The Companys focus in the coming years will therefore be on quality of growth, rather than revenue growth alone.

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

The following five-year indicators provide context for the Companys financial trajectory. The ratios for FY 2025-26 reflect the latest publicly available financial data; the final Annual Report should be cross-checked against the Companys audited ratio schedule before publication.

Particulars	FY 2021-22	FY 2022-23	FY 2023-24	FY 2024-25	FY 2025-26
Operating Profit Margin	10.66	17.79	10.07	-0.06	0.69
Net Profit Ratio (PAT / Sales)	0.05	-0.06	-0.02	-0.08	0.17
PAT/Networth (ROE)	9.09%	-10.31%	-3.90%	-26.32%	45%
Debt / Equity	3.08	3.35	3.40	4.23	2.63
Current Ratio	1.29	1.38	1.14	1.00	1.12
Debt Service Coverage Ratio	0.26	0.21	0.29	0.03	0.25
Debtors T urnover Ratio	3.31	3.55	3.05	2.52	2.10
Creditors Turnover Ratio	2.49	3.36	5.63	8.69	8.78

• Information Technology

Technology continues to support the Companys production, inventory, financial reporting, customer service and distribution processes. The Company seeks to use appropriate digital and technical tools to improve productivity, reduce avoidable manual intervention, strengthen information availability and support decision-making.

The Company will continue to evaluate technology investments that improve production planning, quality control, inventory visibility, customer communication and cost efficiency, commensurate with the scale and requirements of the business.

• Quality Culture

The Companys quality culture remains centred on consistent product quality, adherence to customer specifications, process discipline and timely delivery. Maintaining quality is particularly important in export markets where customer relationships, repeat orders and project approvals depend on consistency and reliability.

The Company continues to emphasise quality checks at relevant stages of sourcing, processing, finishing, packing and dispatch and seeks to strengthen customer confidence through consistent standards and responsive service.

• Human Resources

The Company recognises its employees as an important component of sustainable business performance. Skilled personnel are essential for production, quality control, maintenance, logistics, sales and customer servicing. The Company continues to focus on a safe, conducive and productive working environment and on developing employee capabilities relevant to its operations.

As the business grows, management will continue to focus on employee retention, training, productivity and compliance with applicable labour and workplace requirements.

• Cautionary Statement:

Statements made in this Management Discussion and Analysis Report describing the Companys objectives, projections, expectations, estimates and other forward-looking statements may be forward-looking in nature. Such statements are based on assumptions and expectations as of the date of this Report and are subject to risks and uncertainties. Actual results could differ materially from those expressed or implied due to factors including economic conditions, demand and supply conditions, competition, changes in raw-material and energy prices, freight and logistics costs, foreign-exchange movements, trade policies and tariffs, geopolitical developments, environmental and other regulatory requirements, financing conditions and other factors affecting the Companys operations.

Past performance is not necessarily indicative of future results. The Company undertakes no obligation to publicly amend, modify or revise any forward-looking statements on the basis of subsequent developments, information or events, except as may be required under applicable law.

	Sd/- Parvatha Samantha Reddy
	Whole-time Director and CFO
	DIN: 00141961
	Add: H-No-7-1-214/12Ameerpet,
Place: Hyderabad	Begum pet, Secunderabad-500016 Telangana, India
Date: 28th July 2026

For and on behalf of the Board of Ravileela Granites Limited

Sd/-

Parvat Srivinas Reddy Director

DIN:00359139 Add: H-No-7-1-214/12Ameerpet, Begumpet, Secunderabad-500016 Telangana, India