Riyaasat Lifestyle Ltd Management Discussions

Your directors have pleasure in presenting the management discussion and analysis report for the year ended on March 31, 2026.

Global Economy

The global economy continues to operate in an environment marked by moderating growth, persistent geopolitical uncertainties, changing trade policies and evolving inflationary conditions. During 2025 and into 2026, global economic activity has remained influenced by changes in interest rates, trade restrictions, supply-chain conditions and consumer demand. While inflationary pressures have moderated in several economies, uncertainty surrounding international trade and economic policies continues to affect business confidence and investment decisions.

For the apparel and lifestyle industry, global economic conditions have a direct bearing on consumer spending, raw material prices, sourcing costs, logistics expenses and overall demand for discretionary products. Changes in cotton and other textile input prices, transportation costs and foreign exchange rates may impact the cost structure and profitability of businesses operating in the fashion and apparel sector.

Despite these challenges, the global fashion and lifestyle industry continues to witness opportunities arising from changing consumer preferences, increasing brand awareness, digitalisation and the growing adoption of online shopping. Consumers are increasingly seeking products that offer a combination of quality, design, cultural relevance and value.

For India, domestic consumption remains an important driver of economic growth. Rising disposable incomes, urbanisation, a growing middle class and increasing consumer preference for branded and organised retail are expected to support the long-term growth of the lifestyle and apparel sector. The increasing penetration of e-commerce and digital platforms is also providing businesses with opportunities to expand their geographical reach and engage with a wider customer base.

Against this backdrop, the Indian ethnic-wear and celebration-wear segment continues to offer growth opportunities, supported by festivals, weddings, social occasions and increasing preference for contemporary ethnic fashion. Riyaasat Lifestyle Limited, with its focus on ethnic wear for men and women and its presence through physical stores as well as online channels, is positioned to participate in these evolving consumer trends.

However, the Company remains cognisant of the potential impact of fluctuations in input costs, changes in consumer spending patterns, inflationary pressures, supply-chain disruptions and broader economic uncertainties. The Company continues to focus on product quality, customer experience, prudent inventory management, efficient operations and expansion of its retail presence to support sustainable growth.

INDIAN ECONOMY

The Indian economy continues to demonstrate resilience amid an evolving global economic environment. Indias growth is being supported by strong domestic consumption, infrastructure development, investment activity, increasing digitalisation and favourable demographic trends. While global uncertainties, geopolitical developments, fluctuations in commodity prices and changes in international trade policies continue to pose challenges, Indias relatively strong domestic demand provides a stable foundation for economic growth.

Indias growing middle class, rising disposable incomes, urbanisation and increasing consumer awareness are contributing to the expansion of the organised retail and lifestyle sectors. The continued development of digital payment infrastructure, e-commerce and omnichannel retailing is further transforming consumer purchasing behaviour and providing businesses with opportunities to reach customers across geographical markets.

The apparel and lifestyle industry remains an important component of Indias consumer economy. Increasing preference for branded apparel, changing fashion trends, rising spending on festive and occasion wear, and the growing acceptance of organised retail are creating opportunities for sustained growth in the sector. The ethnic-wear segment, in particular, continues to benefit from Indias diverse cultural and festive landscape, as well as the increasing preference for contemporary designs combined with traditional aesthetics.

For Riyasast Lifestyle Limited, these trends present opportunities to strengthen its presence in the Indian ethnic-wear and lifestyle market. The Company intends to leverage changing consumer preferences, expand its retail footprint, strengthen its online presence and focus on product quality and customer experience. At the same time, the Company remains mindful of challenges such as inflation, fluctuations in raw material and operating costs, changing consumer preferences and competitive pressures.

Overall, Indias favourable demographic profile, expanding consumer base, increasing disposable income and continued growth of organised retail are expected to provide a supportive environment for the long-term development of the apparel and lifestyle industry.

INDIAN ETHNIC WEAR AND APPAREL INDUSTRY

India has a large and diverse apparel market supported by its young population, increasing disposable income, changing lifestyles and strong cultural affinity towards traditional and ethnic clothing. Ethnic wear continues to remain an important segment of the Indian apparel industry, particularly during festivals, weddings, religious occasions and social events.

The market is witnessing a gradual shift from unorganised retail towards organised and branded players. Consumers are increasingly looking for better product quality, wider designs, consistent sizing, improved shopping experience and trusted brands.

The growth of e-commerce and digital platforms has further expanded the reach of apparel brands. Online shopping enables customers to access a wider product range while providing retailers with opportunities to serve customers beyond their physical store locations.

The ethnic-wear market is also evolving with the introduction of contemporary designs, modern silhouettes, improved fabrics and fusion of traditional and modern styles. This changing consumer preference presents opportunities for companies that are able to offer a differentiated product portfolio while maintaining quality and competitive pricing.

INDIAN RETAIL AND E-COMMERCE INDUSTRY

The Indian retail sector continues to undergo significant transformation with the expansion of organised retail, increasing digitalisation and growing adoption of e-commerce. Consumers are increasingly using both physical stores and online platforms for product discovery and purchases.

The integration of offline and online channels is becoming increasingly important in the lifestyle and apparel industry. Physical stores provide customers with opportunities to experience products directly, while online channels provide convenience, wider accessibility and geographical reach.

For ethnic-wear businesses, the combination of retail stores and digital channels provides opportunities to serve customers across different markets and consumer segments. Companies with a strong product portfolio, effective inventory management, customer engagement capabilities and an expanding distribution network are well positioned to benefit from these trends.

FINANCIAL PERFORMANCE

Standalone Financial Statements

The Companys total income increased from 2,518.83 Lakhs in FY 2024-25 to 3,368.18 Lakhs in FY 2025-26, representing a growth of approximately 33.72%.

Revenue from operations increased from 2,480.46 Lakhs in FY 2024-25 to 3,337.46 Lakhs in FY 2025-26, representing an increase of approximately 34.55%.

The Companys EBITDA increased from approximately 512.17 Lakhs in FY 2024-25 to 572.42 Lakhs in FY 2025-26, reflecting an improvement in operating performance.

Profit before tax increased from approximately 587.69 Lakhs in FY 2024-25 to 627.01 Lakhs in FY 2025-26.

Profit after tax increased from approximately 478.24 Lakhs in FY 2024-25 to 519.41 Lakhs in FY 2025-26.

The improvement in profitability was supported by growth in revenue and operating performance during the year.

DETAILS OF KEY FINANCIAL RATIOS

In compliance with the applicable requirements of the Listing Regulations, the key financial ratios of the Company are reviewed and ratios showing significant changes, wherever applicable, are disclosed along with the reasons for such changes.

Key Financial Ratios	FY 2025-26	FY 2024-25	Reason for Significant Change, if any
Current Ratio	1.34	1.44	To be explained based on financial statements
Debt-Equity Ratio	2.26	0.68	To be explained based on change in borrowings/equity
Debt Service Coverage Ratio	1.23	6.46	To be explained based on debt servicing and operating performance
Return on Equity Ratio	0.33	0.49	To be explained based on profitability and net worth
Inventory Turnover Ratio	0.33	0.52	To be explained based on inventory levels and sales
Trade Receivables Turnover Ratio	42.88	49.05	To be explained based on receivables and revenue
Trade Payables Turnover Ratio	2.57	3.11	To be explained based on purchases/payables

INTERNAL CONTROL SYSTEMS

The Company has adequate internal control systems commensurate with its size, scale and nature of business. The internal control framework is designed to ensure efficient utilisation and protection of resources, accuracy and reliability of financial reporting, compliance with applicable laws and regulations, and safeguarding of the Companys assets.

The Company maintains appropriate controls over its retail operations, inventory management, procurement, sales, cash and banking transactions, financial reporting and other operational activities.

The Audit Committee, wherever applicable, periodically reviews the adequacy and effectiveness of the internal control systems and monitors the implementation of recommendations for strengthening internal controls and risk management processes.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES

Human resources continue to remain an important part of the Companys business operations. The Company recognises that skilled, motivated and customer-focused employees are essential for maintaining service quality and supporting the growth of its retail and online operations.

During the year, the Company continued to focus on employee engagement, training, skill development and maintaining a positive work environment. The Company seeks to develop the capabilities of its employees and align individual performance with organisational objectives.

The Company believes that continuous development of its human capital will support its expansion plans and enable it to provide a consistent customer experience across its retail and digital channels.

MANAGEMENT OUTLOOK

The Indian ethnic-wear and lifestyle market continues to present attractive growth opportunities, supported by increasing disposable income, changing consumer preferences, urbanisation, festive and wedding-related consumption and the growth of organised retail.

Riyaasat Lifestyle Limited intends to leverage these opportunities by strengthening its presence in the ethnic-wear segment, expanding its retail footprint, enhancing its online presence and offering products that combine traditional aesthetics with contemporary designs.

The Company remains focused on improving customer experience, maintaining product quality, managing inventory efficiently and strengthening its brand presence. The Company also intends to respond to changing consumer preferences through appropriate product offerings and an integrated retail and online approach.

While the Company remains optimistic about the long-term prospects of the sector, it continues to monitor inflation, changes in consumer spending, competition, rental and employee costs, inventory risks and other factors that may affect its operations.

RISKS AND CONCERNS

The Company operates in a competitive and rapidly evolving apparel and lifestyle market. The principal risks and concerns include changes in consumer preferences, fashion trends, competition, economic slowdown, inflationary pressures, inventory management, supply-chain disruptions and fluctuations in operating costs.

The Companys business is also dependent on its ability to maintain brand reputation, product quality and customer satisfaction. Any significant change in consumer behaviour or fashion trends may affect demand for its products.

Competition from organised retailers, established brands, online marketplaces and other apparel businesses may also affect the Companys market position and margins.

The Company continues to monitor these risks as part of its business operations and seeks to mitigate them through appropriate internal controls, prudent inventory management, supplier relationships, customer engagement and continuous monitoring of market trends.

SEGMENT-WISE/PRODUCT-WISE PERFORMANCE

The Company is primarily engaged in the business of ethnic wear and lifestyle apparel. Its product portfolio is focused on ethnic and traditional wear, with offerings designed to cater to customers seeking products for everyday use, festive occasions, weddings and other celebrations.

The Company primarily focuses on designing and selling mens ethnic wear and has developed its presence through retail stores and online channels. Its business model enables it to cater to customers through physical retail as well as digital platforms.

The Company continues to focus on expanding its product range, improving product designs and enhancing customer experience. The Company believes that its focus on ethnic wear and its retail and online presence provides opportunities to participate in the continued growth of the Indian ethnic-wear market.

CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or future outlook may constitute forward-looking statements. These statements are based on certain assumptions and expectations and are subject to various risks and uncertainties. Actual results may differ materially from those expressed or implied due to changes in economic conditions, consumer preferences, market competition, government policies, regulatory developments and other factors beyond the Companys control.

The Company assumes no responsibility for any change in circumstances occurring after the date of this report and does not undertake any obligation to publicly update any forward-looking statements.

For and on behalf of the Board of Directors

RIYAASAT LIFESTYLE LIMITED

Gaurang Ramanbhai Galiya

Managing Director

DIN:09371655

Date: September 05, 2026

Place: Ahmedabad