S. V. J. Enterprises Ltd Management Discussions

The following discussion and analysis should be read in conjunction with the Companys financial statements included herein, and the notes thereto. Investors are cautioned that the Company undertakes no obligations to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or other factors. Actual results, performances or achievements could differ materially from those expressed or implied in such statements.

Global Economy

The global economy has demonstrated resilience amid continuing geopolitical tensions, changing trade policies, elevated public debt and evolving financial conditions. According to the International Monetary Funds January 2026 World Economic Outlook, global economic growth is projected to remain steady at 3.3% in 2026 and 3.2% in 2027, broadly in line with the estimated growth of 3.3% in 2025. The outlook reflects the balancing of divergent forces, with technology-related investment, particularly in artificial intelligence, fiscal and monetary support, accommodative financial conditions and the adaptability of the private sector helping to offset the adverse impact of changing trade policies and geopolitical uncertainty. Growth in advanced economies is projected at approximately 1.8% in 2026 and 1.7% in 2027. The United States is expected to continue to support global growth, while growth in the euro area is projected to remain moderate. Emerging market and developing economies are expected to continue growing at a comparatively stronger pace, supported by domestic demand, investment, technological developments and structural reforms.

Global inflation is expected to continue moderating. The IMF estimates that global headline inflation will decline from approximately 4.1% in 2025 to 3.8% in 2026 and 3.4% in 2027. The continued moderation in inflation is expected to provide greater flexibility to monetary authorities, although inflationary pressures remain a key consideration for policymakers across major economies.

Global trade continues to face challenges arising from changes in tariff and trade policies, supply-chain adjustments and geopolitical developments. Nevertheless, investment in technology and artificial intelligence, improving financial conditions and the adaptability of businesses are expected to provide support to economic activity.

The global economy is also undergoing structural changes driven by digitalisation, technological innovation, energy transition and changing patterns of international investment.

Financial markets have remained relatively resilient despite periods of volatility arising from geopolitical developments, trade-policy uncertainty and changing expectations regarding monetary policy. Investor sentiment continues to be influenced by interest-rate movements, inflation trends, corporate earnings and expectations surrounding technology-led investment.

Commodity markets continue to be influenced by global demand, geopolitical developments and supply conditions. Energy and other commodity prices remain subject to volatility, while the transition towards cleaner energy and increasing demand for critical minerals are reshaping commodity markets. Demand for commodities such as lithium and cobalt is expected to remain linked to developments in renewable energy, electric mobility, battery storage and other technology-intensive sectors.

Foreign Direct Investment (FDI) and international capital flows remain important drivers of economic development, particularly for emerging and developing economies. Investment patterns are increasingly being influenced by supply-chain diversification, technological advancement, energy transition and the evolving global trade environment.

Overall, as of March 2026, the global economy remains resilient but continues to face significant uncertainties. The outlook is characterised by moderate and steady global growth, declining inflationary pressures and continued technological investment, while geopolitical tensions, trade-policy changes, commodity-price volatility and elevated debt levels remain key risks. Emerging markets and developing economies are expected to remain important contributors to global growth, supported by domestic demand, investment, demographic trends and ongoing structural transformation.

Outlook:

The global economy has remained resilient amid persistent geopolitical tensions, evolving trade policies, elevated uncertainty and varying monetary policy conditions across economies. According to the International Monetary Funds January 2026 World Economic Outlook, global economic growth is estimated at 3.3% in 2025 and is projected to remain at 3.3% in 2026, reflecting the resilience of economic activity despite continued challenges in the global operating environment. Technology-related investment, particularly in artificial intelligence, supportive financial conditions, fiscal and monetary measures and the adaptability of the private sector have provided important support to global economic activity.

Global inflation has continued to moderate from the elevated levels witnessed in the preceding years. Global headline inflation is estimated at 4.1% in 2025 and is projected to decline to 3.8% in 2026, although inflationary pressures remain a key consideration for central banks and policymakers. The gradual moderation in inflation is expected to support household purchasing power and provide greater flexibility for monetary policy, while country-specific inflationary pressures continue to require careful monitoring.

Despite the prevailing uncertainties, several factors continue to support the global economic outlook. Investment in technology and artificial intelligence, improving financial conditions, resilient domestic demand and the ability of businesses to adapt to changing trade and supply-chain conditions are contributing to economic stability. At the same time, changes in trade policies, geopolitical tensions, elevated public debt and the possibility of renewed financial or inflationary pressures remain significant downside risks.

Advanced economies are expected to experience moderate growth, while emerging market and developing economies are expected to remain important contributors to global economic activity. The World Banks January 2026 outlook similarly highlights the resilience of the global economy while noting that trade barriers and policy uncertainty continue to weigh on growth.

Overall, as of March 2026, the global economic outlook remains one of moderate but resilient growth, accompanied by a gradual easing of inflationary pressures. While geopolitical tensions, changing trade policies, commodity-price volatility and financial- market uncertainty remain key risks, technological investment, private-sector adaptability and improving financial conditions provide grounds for cautious optimism regarding the global economic environment.

Indian Economy:

Despite the challenging global economic environment and continuing geopolitical tensions, the Indian economy has demonstrated strong resilience. External factors such as fluctuations in crude oil prices, global trade uncertainties and changing financial conditions have had an impact on the domestic economy. However, strong domestic consumption, infrastructure investment, manufacturing activity and growth in the services sector have continued to support economic expansion.

Indias economy is estimated to grow at 7.6% in FY 2025-26, according to the latest estimates released by the Ministry of Statistics and Programme Implementation (MoSPI) in February 2026 under the revised GDP series with base year 2022-23. The Indian economy continues to remain one of the fastest-growing major economies globally.

Inflationary pressures have moderated during the year compared with the elevated levels witnessed in earlier periods. The gradual easing of inflation, along with resilient domestic demand and improving economic activity, has supported the overall economic outlook. Nevertheless, global commodity prices, geopolitical developments and international trade conditions continue to remain important factors influencing the Indian economy.

Growth of the Indian Economy - Quarter-wise, FY 2025-26

Particulars	Q1 FY 2025-26	Q2 FY 2025-26	Q3 FY 2025-26	Q4 FY 2025-26*
Real GDP Growth (%)	7.8%	8.4%	7.8%	Not available as at March 2026

The Indian economy has maintained a strong growth trajectory during FY 2025-26, supported by robust domestic demand, infrastructure development, manufacturing and services activity. While global geopolitical uncertainties, trade-related developments and commodity-price volatility remain key risks, Indias strong domestic fundamentals continue to provide a favourable foundation for sustained economic growth.

INDUSTRY STRUCTURE AND DEVELOPMENT

The global paper and packaging board industry continued to witness steady demand during FY 2025-26, supported by the increasing adoption of sustainable, recyclable and fibre-based packaging solutions. The industry is undergoing a structural transformation driven by changing consumer preferences, increasing environmental awareness, regulatory measures aimed at reducing plastic usage and the continued expansion of e-commerce and organised retail.

While the traditional printing and writing paper segment continues to face structural challenges arising from digitalisation and the increasing use of electronic media, the paper and paperboard packaging segment continues to demonstrate comparatively stronger demand. Growth in packaging applications is being supported by the food and beverage, pharmaceutical, consumer goods, retail and e-commerce sectors.

The key factors supporting the development of the paper and packaging board industry include:

• Increasing consumer preference for sustainable, recyclable and environmentally friendly packaging;

• Regulatory initiatives and corporate efforts towards reducing the use of single-use plastics;

• Increasing adoption of food-grade paper and paperboard packaging by the food and beverage industry;

• Growing demand for innovative packaging solutions offering improved product protection, functionality and visual appeal;

• Expansion of e-commerce and last-mile delivery, creating additional demand for efficient and sustainable packaging formats;

• Increasing use of recycled fibre and responsibly sourced raw materials; and

• Technological advancements in manufacturing processes, automation, energy efficiency and fibre-based packaging solutions.

The industry is also witnessing increased development of fibre-based flexible packaging and barrier-coated paper solutions, aimed at providing alternatives to conventional plastic- based packaging. This trend is encouraging manufacturers to invest in technology modernisation, product development, recycling capabilities and process efficiency.

At the same time, the industry continues to face challenges relating to fluctuations in raw- material and energy costs, availability of fibre, environmental compliance requirements, global economic conditions and competitive pressures. Manufacturers are increasingly focusing on operational efficiency, sustainable production practices and value-added products to address these challenges.

Overall, the global paper and packaging board industry is expected to maintain a positive long-term outlook, supported by the growing preference for sustainable packaging, expansion of end-use industries and continued innovation in fibre-based packaging solutions.

INDIAN PAPER INDUSTRY OVERVIEW

The Indian paper and paperboard industry continued to witness steady growth during FY 2025-26, supported by increasing demand from the packaging, food and beverage, pharmaceutical, FMCG, education, publishing, e-commerce and logistics sectors. The shift towards sustainable and recyclable packaging solutions, together with increasing consumption and urbanisation, continues to provide favourable long-term growth opportunities for the industry.

The packaging paper and paperboard segment remains the key growth driver of the Indian paper industry. Increasing preference for paper-based and recyclable packaging, growing e- commerce activity and the expansion of organised retail are contributing to higher demand for packaging materials. The food and beverage, pharmaceutical and FMCG sectors continue to be important end-use industries.

The printing and writing paper segment continues to experience relatively moderate growth compared with packaging grades, primarily due to increasing digitalisation and substitution by electronic media. Nevertheless, demand from education, publishing, printing, stationery and other institutional applications continues to provide support to the segment.

The tissue and hygiene paper segment is also witnessing increasing demand, supported by greater awareness of hygiene and sanitation, rising disposable incomes, urbanisation and changing consumer lifestyles.

Key Highlights

Packaging-grade paper and paperboard continues to be the principal growth segment, supported by demand from FMCG, food and beverage, pharmaceutical, retail, e-commerce and logistics industries.

Increasing consumer awareness and regulatory focus on sustainability are encouraging the adoption of recyclable and fibre-based packaging solutions.

The printing and writing paper segment continues to face structural pressure from digitalisation, although education, publishing, printing and stationery requirements continue to support demand.

The tissue and hygiene paper segment is benefiting from increasing hygiene awareness, urbanisation and changing consumption patterns.

Increasing investments in capacity expansion, automation, energy efficiency, recycling and modern manufacturing technologies are expected to improve the competitiveness of the Indian paper industry.

Government & Policy Support:

The Government of India continues to promote domestic manufacturing, sustainability and responsible waste management through various policy initiatives. Key developments relevant to the paper and packaging ecosystem include:

Continued emphasis on Make in India and domestic manufacturing, supporting the development of indigenous production capabilities;

Implementation of Extended Producer Responsibility (EPR) requirements for packaging waste, encouraging recycling, recovery and the development of sustainable packaging solutions;

Policy initiatives promoting circular economy principles, recycling and resource efficiency; and Measures supporting investment, infrastructure development and technological advancement across manufacturing and end-use industries.

These developments are expected to encourage investments in capacity expansion, modernisation, recycling and environmentally sustainable technologies. The Indian paper industry is therefore well positioned to benefit from the growing preference for sustainable packaging and the expansion of domestic consumption, although raw-material availability, energy costs, environmental regulations and global market conditions remain important factors influencing the industrys performance.

Measures supporting investment, infrastructure development and technological advancement across manufacturing and end-use industries.

SWOT ANALYSIS OF THE INDIAN PAPER AND PACKAGING INDUSTRY

Strength	Weakness	Threats	Opportunities
Growing traction of the packaging board segment	A number of economically unviable plants	Inflationary pressure on raw material costs	Considerable demand headroom due to lower per capita consumption
Different kinds of paper produced	Use of large debts to fund a number of plants	Increasing competition from cheaper imports creating pricing pressure	Rising demand of Packaging paper/board in food and pharma sector
Rising income of plantation farmers	There is a growing requirement of scale to survive	Hampering of paper demand by digitalisation and digitisation	Greater Hygiene awareness due to the pandemic
State of the art manufacturing plants			Increasing demand from downstream sectors (Kraft, corrugation, duplex)
Writing & Printing segment is still growing			Innovative product creation possibilities
			Ban on single use plastic to generate demand

DEMAND DRIVERS

The Indian paper and paper products industry is supported by a strong foundation of demographic, economic, and behavioral drivers that continue to propel demand across multiple segments. Key factors influencing demand in 2025-2026 include:

1. Growing Literacy

Improvement in literacy levels and continued government focus on education have supported the demand for writing and printing paper, notebooks, exercise books and other educational paper products. Increasing educational participation, particularly in rural and semi-urban areas, is expected to provide continued support to the industry.

2. Reopening and Expansion of Offices

The adoption of in-office and hybrid working models has contributed to the recovery in demand for copier paper, printing paper, files, notebooks and other office stationery. Expansion of IT, services and other businesses into Tier-2 and Tier-3 cities is also expected to support institutional demand for paper products.

3. Population Growth

Indias large and growing population provides a significant consumer base for paper and paper-based products. Population growth is expected to support demand for educational materials, packaging products, hygiene-related paper products and other consumer applications.

4. Youthful Demographic Advantage

Indias young demographic profile, comprising a large population of students, young professionals and emerging consumers, is expected to support demand for exercise books, educational paper, e-commerce packaging and lifestyle and hygiene-related paper products.

5. Expanding Middle Class and Disposable Income

Increasing disposable incomes, urbanisation and the expansion of the middle-income population are contributing to higher consumption of packaged consumer goods, branded FMCG products and premium products. This trend is expected to positively impact demand for paperboard, packaging materials and premium stationery products.

6. Urbanization

Indias pace of urbanization continues to accelerate. By 2030, India is projected to have over 75 urban agglomerations with populations exceeding 1 million, surpassing the USAs 55. This urban sprawl is leading to expansion of retail chains, more educational and healthcare institutions, rise in organized logistics and packaging demand, all of which contribute directly to higher paper consumption.

7. E-Commerce and Digital Retail Growth

The Indian e-commerce market was valued at approximately US$ 110-120 billion in 2024 and is projected to reach around US$ 350 billion by 2030, significantly exceeding earlier market estimates. The sector is being driven by increasing internet penetration, which stood at approximately 74% in 2024, rapid adoption of UPI and digital payments, and the growing accessibility of e-commerce across Tier-2 and Tier-3 cities.

The rapid expansion of e-commerce and digital retail is creating substantial demand for corrugated boxes, kraft paper, labels, paper-based packaging, and protective wrapping materials. As online retail continues to expand, packaging remains an essential component of the supply chain, thereby strengthening the growth prospects of the paper and packaging industry in India.

MITIGATION STRATEGIES:

The company is focused on building a robust training framework to cater to the development needs of employees across leadership levels.

a. Also, the Company keeps itself abreast and updated on the contemporary developments in the technology landscape through participation in key technology forums and conferences.

b. The company tried to revamp framework to ensure that it meets the continuity and recovery requirements for employees, assets and business in the event of a disruption.

c. The company has defined a process for Identification of Critical to Success capabilities for each key position, objective assessment to identify current capability metrics for the potential successors, a structured development journey of identified successors.

d. The company has implemented a robust compliance assurance system and mechanism to monitor various compliances.

OPERATIONAL PERFORMANCE

The Companies growth considering the past few years performance has declined. The Company is striving hard for increasing profits from year to year. The Profit before tax for the year ended March 31, 2026 amounted to Rs. 99.00 Lacs as against of Rs. 95.54 Lacs incurred in a previous financial year for year ended March 2025.

RISKS AND CONCERNS:

The Company recognizes that risk is an integral and unavoidable component of business and is committed to managing the risk in a proactive and effective manner. In this regard, the Company has adopted Risk Management Mechanism which involves the Process of systematically identifying all possible risk events which have a potential impact on the business.

INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Internal Control - Integrated Framework (the 2013 framework) is intended to increase transparency and accountability in an organisations process of designing and implementing a system of internal control. The framework requires a company to identify and analyse risks and manage appropriate responses.

It has well-defined delegation of power with authority limits for approving revenue as well as expenditure, Segregation of responsibility, independent control over the execution of activities, processes for formulating and reviewing annual and long-term business plans. It has continued its efforts to align all its processes and controls with global best practices.

HUMAN RESOURCES

Employees are your companys most valuable resource. Your Company continues to create a favourable environment at work place. The company also recognizes the importance of training and consequently deputes its work force to various work-related courses/seminars including important areas like issues like technical skills.

CAUTIONARY STATEMENT

Statements in the Management Discussion & Analysis Report describing the Companys expectations, opinion, and predictions may please be considered as "forward looking statements" only. Actual results could differ from those expressed or implied. Companys operations should be viewed in light of changes in market conditions, prices of raw materials, economic developments in the country and such other factors.