Raw Edge Industrial Solutions Ltd Management Discussions

In terms of Regulation 34 of SEBI (Listing Obligations And Disclosure Requirements), Regulations, 2015 the Management Discussion and Analysis Report (MDAR) is structured as follows:

• Industry structure and developments

• Opportunities & Threats

• Segment-wise or product-wise performance

• Overview & Outlook

• Risk and Concerns

• Internal control systems and their adequacy

• Financial and operational performance

• Material Development in Human Resources

• Key financial ratios

Some Statements in this discussion may be forward looking. Future performance may however differ from those stated in the management discussion and analysis on account of various factors such as changes in Government regulations, tax regimes, impact of competition, etc.

INDUSTRY STRUCTURE AND DEVELOPMENTS

GLOBAL PRODUCTION OF LIME:

Below table shows country wide world production of Quicklime and hydrated lime, including dead-burned dolomite.

Country Name	2025	2024	2023	2022
China	3,10,000	3,10,000	3,10,000	3,10,000
India	17,000	17,000	16,000	16,000
USA	15,000	15,000	17,000	17,000
Russia	12,000	11,800	11,000	11,000
Japan	5,900	5,870	6,200	7,000
Brazil	8,200	8,200	8,300	8,400
Germany	4,800	4,800	5,900	5,600
Italy	2,500	2,500	3,500	3,600
South Korea	5,000	5,000	5,100	5,200
Ukraine	1,100	1,100	2000	2000
Turkey	4,000	4,000	4,600	4,800

Limestone reserves are adequate for most of the countries. China is consistently the largest producer of Lime as can be seen in above table. India is the 2nd largest country in the World in terms of production according to data released by U.S. Geological Survey, Mineral Commodity Summaries. All these countries produce adequate quantity of lime for their own consumption.

According to experts, strongest annual growth of lime is expected to come from China, India, US and other developing countries.

As per publicly available data from reliable sources such as the United States Geological Survey (USGS) and global market research reports, the latest country-wise lime production data is available only up to the year 2025.

During the financial year 2025–26, the global minerals and limestone industry remained stable despite economic uncertainties in several countries. Demand from key industries such as steel, construction, infrastructure, chemicals, and environmental applications continued to support the market. Although higher interest rates and geopolitical developments slowed industrial activity in some regions, the overall demand for limestone, lime, and other industrial minerals remained steady.

The industry also witnessed increasing demand for value-added products such as Hydrated Lime, driven by their growing use in water treatment, pollution control, and other industrial applications. China continued to be the largest producer of lime globally, while developed countries maintained stable production to meet domestic industrial requirements. Overall, the global minerals and limestone sector remained resilient and continued to play an important role in supporting industrial and infrastructure development.

x Global Lime Industry: According to the U.S. Geological Survey (USGS), global lime production was estimated at approximately 420 million metric tons during 2025. x Chinas Position: China continued to be the largest producer of lime globally with an estimated production of 310 million metric tons, accounting for a significant share of worldwide output. x Indias Position: India remained the second-largest producer of lime globally with an estimated production of 17 million metric tons during 2025. x Demand Outlook: Demand for lime and value-added products such as Hydrated Lime continued to be supported by growth in steel manufacturing, infrastructure development, environmental applications, water treatment and industrial processing activities across major economies.

GROWTH OF INDIAN ECONOMY

The Indian economy continued to demonstrate remarkable resilience during FY 2025–26, maintaining its position as the fastest-growing major economy in the world. As per the provisional estimates released by the Government of India, the countrys real Gross Domestic Product (GDP) grew by 7.4% (approx.) during FY 2025–26, reflecting robust domestic demand, sustained public investment, resilient manufacturing activity, and strong growth in the services sector. A healthy growth of 7.8% (approx.) in the fourth quarter (Q4 FY2025–26) further underscores the strength of the Indian economy despite ongoing geopolitical tensions, global trade uncertainties, and volatile commodity prices.

The Government has continued its emphasis on infrastructure-led growth by providing a capital expenditure outlay of approximately 11.21 lakh crore in the Union Budget FY2025–26. This sustained investment in infrastructure development is expected to strengthen logistics, improve connectivity, enhance manufacturing competitiveness, stimulate private sector investments, create employment opportunities, and support long-term economic growth across various sectors.

Asian economies such as India, China, Japan, and South Korea continue to remain significantly dependent on crude oil imports. Consequently, disruptions in global supply chains, geopolitical conflicts, and fluctuations in international crude oil prices continue to pose risks to these economies. Higher energy prices may lead to increased inflationary pressures, elevated transportation and manufacturing costs, and reduced consumer purchasing power.

Although inflation moderated during FY2025–26, central banks across the globe continued to carefully balance the objectives of maintaining price stability while supporting economic growth. The evolving global monetary policy environment, changing interest rate outlook, and capital flow movements continue to influence investment decisions and macroeconomic stability across emerging economies, including India.

The global growth outlook for the coming years, as per the latest estimates, indicates gradual improvement; however, growth continues to remain below the long-term historical average. The key highlights are as follows:

1. Global Growth Estimates:

The International Monetary Fund (IMF) projects global economic growth at approximately 3.0% in 2025, with a modest improvement to around 3.1% (approx.) in 2026. The upward revision reflects improving economic conditions in the United States, China, and several emerging economies, supported by easing inflation, improving financial conditions, and gradual recovery in global trade.

2. Comparison with Historical Average:

Despite the projected improvement, global growth continues to remain below the historical average of 3.8% (approx.) recorded during the period 2000–2019. This divergence is primarily attributable to the following factors:

• Monetary Policy Normalization:

Although inflation has moderated in many economies, central banks continue to maintain cautious monetary policies. Interest rates remain relatively elevated compared to pre-pandemic levels, resulting in tighter financial conditions and moderating investment growth.

• Reduced Fiscal Space:

Governments across both advanced and emerging economies continue to face high public debt levels following pandemic-related fiscal spending. Consequently, fiscal consolidation measures and limited budgetary flexibility are expected to constrain public expenditure and economic expansion.

• Moderate Productivity Growth:

Despite rapid technological advancements, digital transformation, and increasing adoption of Artificial Intelligence (AI), productivity growth across several economies remains moderate due to structural challenges, labour market mismatches, and slower capital formation.

3. Advanced Economies Outlook:

Advanced economies are expected to witness moderate growth during 2025 and 2026. The United States is projected to maintain resilient economic activity supported by strong labour markets and consumer spending, although growth is expected to moderate from previous highs. The Euro Area is likely to experience a gradual recovery driven by easing inflation, improving domestic demand, and better financial conditions, while Japan is expected to record stable growth supported by corporate investments and accommodative fiscal policies.

While growth forecasts for several advanced economies have improved, the global economy continues to face structural challenges arising from geopolitical tensions, changing trade dynamics, supply chain diversification, climate-related risks, and elevated debt levels.

Emerging Market and Developing Economies (EMDEs) are expected to continue driving global economic growth during 2025 and 2026. Strong domestic demand, expanding services sectors, improving investment activity, and gradual easing of financial conditions are expected to support stable economic growth across these economies. However, regional variations continue to persist based on domestic policy frameworks, external vulnerabilities, commodity price movements, and geopolitical developments.

1. Stable Growth Outlook:

Emerging Market and Developing Economies are projected to maintain stable growth through 2025 and 2026, supported by favourable demographics, increasing urbanisation, digital adoption, infrastructure investments, and resilient domestic consumption. These economies are expected to remain the primary contributors to global economic growth over the medium term.

2. Regional Differences:

There continue to be notable regional variations in growth prospects:

• Asia:

Asia is expected to remain the largest contributor to global growth, led by India and other emerging Asian economies. Indias growth continues to be supported by robust domestic consumption, government infrastructure spending, manufacturing expansion, digital transformation, and ongoing structural reforms. China is expected to maintain moderate growth supported by policy measures and economic rebalancing.

• Latin America:

Economic growth across Latin America is expected to remain moderate, with countries such as Brazil and Mexico showing gradual improvement, while fiscal challenges and political uncertainties continue to influence regional performance.

• Africa:

Sub-Saharan Africa is projected to witness moderate growth supported by investments in infrastructure, agriculture, mining, and services. However, debt sustainability concerns, climate change impacts, and geopolitical instability remain significant challenges.

• Middle East:

Economic performance in the Middle East continues to be influenced by global oil prices. Oil-exporting countries are expected to benefit from relatively stable energy markets, while ongoing diversification initiatives across sectors such as tourism, manufacturing, and technology are expected to strengthen long-term resilience.

• Central and Eastern Europe:

Growth in the region is expected to remain moderate, supported by manufacturing exports, foreign direct investment, and continued economic integration with the European Union. Nevertheless, geopolitical developments and energy market volatility continue to present downside risks.

3. Policy Implications:

Policymakers across advanced and emerging economies are expected to continue focusing on strengthening macroeconomic stability by maintaining fiscal discipline, controlling inflation, supporting investments, improving productivity, accelerating digital transformation, and enhancing supply chain resilience. Structural reforms aimed at improving ease of doing business, promoting sustainable development, and attracting long-term investments are expected to remain key priorities.

In summary, while the global economy continues to face uncertainties arising from geopolitical developments, commodity price volatility, climate-related risks, and evolving financial conditions, India remains well-positioned to sustain strong economic growth. Supported by sound macroeconomic fundamentals, continued infrastructure investments, robust domestic demand, digital innovation, and a reform-oriented policy framework, India is expected to remain one of the fastest-growing major economies in the world over the medium term.

OPPORTUNITIES & THREATS

In the evolving landscape of the Indian economy during FY 2025–26, characterized by strong economic growth, continued infrastructure development, increasing industrialization, and the Governments sustained focus on manufacturing under initiatives such as Make in India and the National Infrastructure Pipeline, your Company continues to strengthen its position by delivering high-quality lime products backed by consistent quality, timely deliveries, technical support, and customer-centric services. These core strengths continue to play a vital role in enhancing customer confidence and driving sustainable business growth.

The lime industry continues to present significant growth opportunities owing to increasing demand from diverse sectors such as Steel & Iron, Water & Wastewater Treatment, Chemicals, Pharmaceuticals, Paper & Pulp, Sugar, Mining, Construction, Glass, Non-Ferrous Metals, Flue Gas Desulphurization (FGD), and Environmental Protection. Continued Government investment in infrastructure through a capital expenditure outlay of approximately 11.21 lakh crore in the Union Budget FY 2025–26 is expected to support industrial expansion, infrastructure development, and manufacturing growth, thereby creating sustained demand for lime-based products.

The Company remains well positioned to capitalize on these opportunities through its focus on product quality, process efficiency, customer satisfaction, and continuous operational improvements. The Companys strategic location, reliable supply chain, experienced management team, and commitment towards maintaining high product standards provide a competitive advantage in serving customers across multiple industries.

The Company also continues to explore new business opportunities by expanding its customer base across specialty chemicals, water treatment, environmental applications, infrastructure projects, and export markets. Growing awareness regarding environmental compliance and increasing investments in wastewater treatment and emission control systems are expected to create additional demand for Hydrated Lime and other lime-based products.

On the other hand, the industry continues to face challenges arising from fluctuations in limestone availability, volatility in fuel and energy costs, rising transportation expenses, increasing logistics costs, and pricing pressure due to intense competition. Further, stringent environmental regulations relating to emissions, dust control, mining operations, and waste management continue to require continuous investment in pollution control measures and sustainable manufacturing practices.

The Company also remains exposed to risks associated with changing global economic conditions, geopolitical uncertainties, volatility in commodity prices, and disruptions in supply chains, which may impact input costs and customer demand across certain industrial sectors.

Nevertheless, Indias abundant reserves of quality limestone, increasing investments in industrial infrastructure, growing manufacturing activity, and rising demand for environmentally sustainable products continue to provide significant long-term growth opportunities for the lime industry. The increasing acceptance of Indian lime products in international markets also presents opportunities for expanding exports and enhancing foreign exchange earnings.

To capitalize on these opportunities while effectively managing emerging challenges, the Company remains committed to operational excellence, technological upgradation, product innovation, cost optimization, sustainable manufacturing practices, and strengthening long-term customer relationships. These initiatives are expected to enhance the Companys competitive position and support its long-term sustainable growth while contributing to Indias industrial and infrastructure development.

SEGMENT WISE OR PRODUCT WISE PERFORMANCE

The Companys revenue continues to be primarily driven by the sale of Hydrated Lime, which remains its principal product and contributes the largest share of the overall turnover. During the year under review, the Company also generated revenue from the sale of other lime-based products and transportation services, thereby maintaining a diversified revenue stream.

The product-wise revenue composition for FY 2025–26 is as under:

F.Y.	Hydrated Lime	Others	Transportation Revenue	Total
2025-26	31,58,15,872.06	3,18,28,336.57	1,02,68,237.26	35,79,12,445.89
%	88.24%	8.89%	2.87%	100%

Hydrated Lime continued to remain the Companys core business segment, supported by consistent demand from chemical, steel, water treatment, and other industrial sectors. The Company continues to focus on improving product quality, expanding its customer base, strengthening operational efficiencies, and enhancing value-added services to support sustainable revenue growth across all business segments.

OVERVIEW & OUTLOOK

The Company maintains a highly competitive edge through meticulous selection of raw materials sourced from high-quality limestone. This strategic focus enables the Company to consistently produce superior materials that meet the exacting requirements of its customers. Emphasizing long-term customer satisfaction and support has been a cornerstone of the Companys operations for years.

The Company continues to capitalize on inherent opportunities, such as producing hydrated lime, quick lime, lime fines, and other value-added products, with a positive outlook for achieving robust outcomes.

Efforts to enhance product diversity and expand customer segments have significantly bolstered margins across all product lines. By enhancing operational capabilities and targeting value-added offerings, the Company has successfully catered to niche markets and strengthened its customer base. These initiatives have mitigated the impact of lower volumes to a certain extent.

Vigilant management of receivables and inventories has safeguarded the Company against potential losses from bad debts or inventory write-offs. Furthermore, focused efforts on optimizing working capital management have resulted in prudent reductions in inventory levels, receivables, and payables through rigorous control measures.

RISK AND CONCERNS

The Company has established a well-defined process of risk management, wherein the identification, analysis and assessment of the various risks, measuring of the probable impact of such risks, formulation of risk mitigation strategy and implementation of the same takes place in a structured manner. Though the various risks associated with the business cannot be eliminated completely, all efforts are made to minimize the impact of such risks on the operations of the Company.

Various activities undertaken to achieve the goals make the Company susceptible to various risks. It has to be recognized that risks are not merely the hazards to be avoided but, in many cases, offer opportunities which create value ultimately leading to enhancement of shareholders wealth, and ensuring sustainability of operations.

INTERNAL CONTROL SYSTEM

The Company has in place an adequate system of internal control commensurate with its size and nature of its business. These have been designed to provide reasonable assurance that all assets are safeguarded and protected against loss from unauthorized use or disposition and that all transactions are authorized, recorded and reported correctly and the business operations are conducted as per the prescribed policies and procedures of the Company. The Audit committee and the management have reviewed the adequacy of the internal control systems and suitable steps are taken to improve the same.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFOMRMANCE

We are already excelling in area of manufacturing lime and also endeavouring in allied activities. The coming few years will be exciting and challenging at the same and your company will continue to strive for excellence with economic value addition. Your Company has recorded total revenue of Rs. 35,80,59,130/-, Net Loss for the Financial Year stood at Rs. 13,16,898/- and recorded an EBIDTA (before Exceptional item) of Rs. 2,58,60,647/- and EBIDTA (After Exceptional item) of Rs. 3,09,68,157/- as standalone basis for the financial year as on 2025-26. Financial performance of the Company for Financial Year 2025-2026 is summarized below:

(Figure in rupees)

Particulars	2025-2026*	2024-2025*
Revenue from operations	35,79,12,446	44,78,26,923
Other Income	1,46,684	4,69,739
Total revenue	35,80,59,130	44,82,96,662
Profit before tax and Exceptional items	(64,60,013)	(34,84,193)
Exceptional items	(51,07,510)	-
Profit/ (Loss) before tax	(13,52,503)	(34,84,193)
Less: Tax Expenses
- Current Tax	-	-
- Deferred Tax	(35,604)	69,06,863
Net Profit/ (Loss) For the Year	(13,16,898)	(1,03,91,056)

* Figures regrouped wherever necessary.

HUMAN RESOURCES DEVELOPMENT AND INDUSTRIAL RELATIONS

Our Company firmly believes that its human resources are the key enablers for the growth of the Company and important asset. Hence, the success of the Company is closely aligned to the goals of the human resources of the

Company. Taking into this account, your Company continued to invest in developing its human capital and establishing its brand on the market to attract and retain the best talent.

Employee relations during the period under review continued to be healthy, cordial and harmonious at all levels and your Company is committed to maintain good relations with the employees.

SIGNIFICANT CHANGES

(1) Debtors Turnover

Debtors turnover ratio changed to 3.35 times of Revenues in FY.26 from 3.17 times of Revenues in FY.25.

(2) Inventory Turnover

Inventory turnover ratio stood at 2.70 in FY.26 as compared to 3.29 in FY.25.

(3) Interest Coverage Ratio

Interest coverage ratio stood at 0.90 in FY.26 as compared to 0.79 in FY.25.

(4) Current Ratio

Current Ratio stood at 1.52 in FY.26 as compared to 1.44 in FY.25.

(5) Debt Equity Ratio

Debt Equity Ratio stood at 0.80 in FY.26 as compared to 0.89 in FY.25.

Operating Profit Margin (%)

Operating profit margin has decreased from 2.00% of revenues in FY.26 to 2.89% of revenues in FY.25. Reason for variance: Increase in operating expenses and input costs during the year, resulted in lower operating profitability as a percentage of revenue.

(7) Net Profit Margin (%)

Net profit margin (PAT) has stood at 0.00 of revenues in FY.26 and -0.02 % of revenues in FY.25.

Reason for variance: The Return on Equity (ROE) and Return on Capital Employed (ROCE) have improved driven by higher profit margins on sales resulting from shift in the customer mix towards higher profitability customers.

RETURN ON NET WORTH AS COMPARE TO IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF

Return on Net Worth at -1% in FY 26 as compared to -4.98% in FY.25.

"The Return on Net Worth improved from (-4.98%) in FY 2024-25 to (-1%) in FY 2025-26. The improvement was primarily due to a reduction in losses during the year, resulting in a comparatively better return on shareholders funds. However, the ratio remained negative as the Company continued to incur losses during the financial year."

CAUTIONARY STATEMENT

The report may contain certain statements that the Company believes are, or may be considered to be "forward looking statements" that describe our objectives, plans or goals. All these forward looking statements are subject to certain risks and uncertainties, including but not limited to, government action, economic development and risks inherent in the Companys growth strategy and other factors that could cause the actual results to differ materially from those contemplated by the relevant forward looking statements.

Date: July 30, 2026		For Raw Edge Industrial Solutions Limited
Place: Surat
	Sd/-	Sd/-
	Bimalkumar Rajkumar Bansal	Prashant Suresh Agarwal
	Managing Director	Whole-Time Director & CFO
	(DIN: 00029307)	(DIN: 10394966)