Sacheerome Ltd Management Discussions

FINANCIAL KPIs OF OUR COMPANY

Key Performance Indicator	For the year ended March 31, 2026	For the year ended March 31, 2025
Revenue from Operations	15,238.58	10,753.59
Growth in Revenue from Operations (%)	41.71%	26.37%
Total Income	15,628.56	10,858.45
EBITDA	4,066.15	2,346.26
EBITDA Margin (%)	26.02%	21.61%
Net Profit for the Year/Period	2,844.11	1,598.11
PAT Margin (%)	18.20%	14.72%
Return on Net Worth (%)	19.16%	25.81%
Return on Capital Employed (in times)	0.36	0.40
Debt-Equity Ratio (in times)	-	0.06

1. Revenue from operations represents the revenue from sale of service & product & other operating revenue of our Company as recognized in the audited nancial information.

2. Total income includes revenue from operations and other income.

3. EBITDA means Earnings before interest, taxes, depreciation and amortization expense, which has been arrived at by obtaining the pro t before tax/ (loss) for the year / period and adding back interest cost, depreciation, and amortization expense.

4. EBITDA margin is calculated as EBITDA as a percentage of total income.

5. Net Pro t for the year/period represents the restated pro ts of the Company after deducting all expenses.

6. PAT Margin (%) is calculated as Pro t for the year/period as a percentage of Revenue from Operations.

7. Return on net worth is calculated as Net pro t after tax, attributable to the owners of the Company for the year/ period divided by Net worth at the end of respective period/year. Networth means aggregate value of the paid-up equity share capital and reserves & surplus.

8. Return on capital employed calculated as Earnings before interest and taxes divided by capital employed as at the end of respective period/year. (Capital employed calculated as the aggregate value of total equity, total debt and deferred tax liabilities)

9. Debt- equity ratio is calculated by dividing total debt by total equity. Total debt represents long-term and short-term borrowings. Total equity is the sum of share capital and reserves & surplus.

Explanation for the Key Performance Indicators:

KPIs	Explanations
Revenue from	Revenue from Operations is used by our management to track the revenue profile of our business and in turn helps assess the verall financial performance of our o
Operations	Company and size of our business.
Total Income	Total Income is used by our management to obtain a comprehensive view of all income including revenue from operations and other income
EBITDA	EBITDA provides information regarding the operational efficiencyof our business
EBITDA Margin	EBITDA Margin is an indicator of the operational profitability and financial performance of our business.
Net Profit for the Year / Period	Net Profit for the year/period provides information regarding the overall profitability of our business
Return on Net Worth (in %)	Return on Net Worth provides how efficiently our Company generates profits from shareholders funds.
Return on Capital	Return on Capital Employed provides how efficiently our Company generates earnings from the capital employed in our business.
Employed (in %)
Debt-Equity Ratio (in times)	Debt- equity ratio is a gearing ratio which compares shareholders equity to company debt to assess our companys amount of leverage and financial stability.

RESULTS OF OUR OPERATIONS

(Amount in Lakhs)

Particulars	For the year ended March 31, 2026	% of Total Revenue	For the year ended March 31, 2025	% of Total Revenue
INCOME
Revenue from Operations (Gross)	15,238.58	97.50%	10,753.59	99.03%
Other Income	389.98	2.50%	104.87	0.97%
Total Revenue (A)	15,628.56	100.00%	10,858.45	100.00%
EXPENDITURE
Cost of Material Consumed	9,306.26	59.55%	6,373.50	58.70%
Changes in inventories of Work -in-progress & stock-in-trade	-170.55	-1.09%	7.66	0.07%
Employee Benefit Expenses	1,279.10	8.18%	1,026.09	9.45%
Finance Costs	11.75	0.08%	27.52	0.25%
Depreciation and Amortization expense	245.84	1.57%	176.18	1.62%
Other expenses	1,147.60	7.34%	1,104.95	10.18%
Total Expenses (B)	11,820.00	75.63%	8,715.89	80.27%
Profit before prior period items and tax	3,808.56	24.37%	2,142.56	19.73%
prior period items	-		0.56
Profit before Tax	3,808.56	24.37%	2,142.00	19.73%
Tax Expense/ (benefit)
(a) Current Tax Expense	1,004.85	6.43%	555.05	5.11%
(b) Deferred Tax	-40.41	-0.26%	-10.36	-0.10%
(c) Income tax for earlier years	-		-0.79
Net tax expense / (benefit)	964.45	6.17%	543.9	5.01%
Profit/(Loss) for the Period	2,844.11	18.20%	1,598.11	14.72%

Components of our Pro t and Loss Account

Income

Our total income comprises of revenue from operations and other income.

Revenue from Operations

Our revenue from operation as a percentage of our total income was 97.50% and 99.03% for the period ended Financial Years ended March 31, 2026 and March 31, 2025 respectively.

(Amount in Lakhs)

Particulars	For the year ended 31st March 2026	For the year ended 31st March 2025
Sale of products
Indigenous sales
Manufactured goods	14,274.42	9,914.29
Export sales
Manufactured goods	943.60	821.51
Total (A)	15,218.03	10,735.80
Other operating revenue
Scrap Sales	20.56	17.79
Total (B)	20.56	17.79
Grand Total (A + B)	15,238.58	10,753.59

Other Income

Our Other Income primarily consists of Interest Income, Net Foreign Exchange Gain, Other non-operating income, etc.

(Amount in Lakhs)

Particulars	For the year ended 31st March 2026	For the year ended 31st March 2025
Rental Income	38.27	38.27
Interest Income	247.12	7.50
Net gain on sale of property, plant and equipment	7.04	0.70
Clearing and Forwarding Income	61.98	45.04
Net gain on Foreign Exchange Fluctuation	19.40	9.86
Liabilities/Provision no longer required written back	0.05	-
Export Incentive	9.13	-
Miscellaneous Income	6.99	3.49
Total	389.98	104.87

Expenditure

Our total expenditure primarily consists of Cost of Materials Consumed, Changes in Inventories of Stock in trade, Employee bene t expenses, Finance

costs, Depreciation & Amortization Expenses and Other Expenses.

Employee Bene t Expenses

Our employee bene ts expense comprises of Salaries & Wages, Employers Contribution to Provident fund and ESI, Provision for Gratuity, Staff Welfare.

Finance costs

Our Finance cost expenses comprises of Bank Charges and Interest on Borrowings, Interest on delayed payment of taxes, Interest on Income tax.

Other Expenses

Other expenses primarily include Rent charges, Travelling & Conveyance expenses, Security charges, Business promotion expenses, Electricity and

Generator Expense and Legal, professional & consultancy charges.

Particulars	For the year ended 31st March 2026	For the year ended 31st March 2025
Rent charges	228.48	218.29
Travelling & Conveyance expenses	136.81	111.26
Security charges	59.99	65.49
Business promotion expenses	112.05	166.22
Electricity and Generator Expense	75.64	78.17
Repairs and maintenance
- on building	2.72	0.36
- on machinery	12.50	11.49
- others	65.72	44.01
Vehicle running & maintenance	34.38	42.82
Office Maintenance	28.62	34.48
Legal, professional & consultancy charges	139.39	77.74
Communication expenses	30.22	24.39
Donation	1.10	1.10
Corporate Social Responsibility	30.00	17.51
Rates and taxes	4.84	11.00
Penalty	0.01	-
Printing & stationary expenses	12.09	15.13
Insurancecharges	23.48	16.75
R & D expenses	20.22	20.15
Freight Outward	62.29	48.19
Directors Sitting fees	11.24	4.70
Membership &subscription fees	0.91	2.21
Payment to Auditors	8.24	14.96
Commission on sales	0.15	32.31
Festival expenses	26.66	3.12
Balances written off	0.13	35.43
Miscellaneous expenses	19.72	18.41
Total	1,147.60	1,115.69
Less: Amount Transferred to prepaid IPO Expense	-	-10.75
Total	1,147.60	1,104.94

Provision for Tax

The provision for current taxation is computed in accordance with relevant tax regulation. Deferred tax is recognized on timing differences between the accounting and the taxable income for the year and quanti ed using the tax rates and laws enacted or subsequently enacted as on balance sheet date. Deferred tax assets are recognized and carried forward to the extent that there is a virtual certainly that suf cient future taxable income will be available against which such deferred tax assets can be realized in future.

Fiscal 2026 compared with scal 2025

Revenue from Operations

Our revenue from operations increased from 10,753.59 lakhs in FY 2024-25 to 15,238.58 lakhs in FY 2025-26, marking a substantial growth of 4484.99 lakhs (41.71%), driven by signi cant increases in both export and domestic sales. Of the total increase of 4484.99 lakhs (41.71%), 4362.90 lakhs (40.58% out of total increase of 41.71%) came from increase in domestic sales, and 122.10 lakhs (1.13% out of total increase of 41.71%) came from increase in export sales. Of the total increase of 4484.99 lakhs, 1361.08 lakhs was contributed by new customers, while 3123.84 lakhs was contributed by existing customers.

We also maintained a diversi ed revenue mix across domestic and export markets, enabling balanced growth opportunities. Domestic sales contributed approximately 94% of nancial year 25-26 revenue from operations, while export sales contributed for around 6%, re ecting our strong domestic market presence along with a steadily expanding international footprint.

In terms of product mix, the fragrance segment contributed around 94% of the revenue from operations during nancial year 25-26, while the avor

segment contributed approximately 6% to total revenue from operations.

Other Income

The other income of our Company for the scal year 2026 was 389.98 lakhs, compared to 104.87 lakhs for the scal year 2025, representing an increase of 271.89%. This signi cant increase was primarily attributable to a substantial rise in interest income from 7.50 lakhs in FY 2025 to 247.12 lakhs in FY 2026, mainly due to the deployment of IPO proceeds in xed deposits. Further, net gain on the sale of property, plant and equipment increased from 0.70 lakhs in FY 2025 to 7.04 lakhs in FY 2026 on account of the disposal of certain vehicles during the year. Clearing and forwarding income also increased from 45.04 lakhs to 61.98 lakhs due to higher sales, while net gain on foreign exchange uctuation increased from 9.86 lakhs to 19.40 lakhs, primarily owing to favourable movement in foreign exchange rates in respect of export receivables. Additionally, the Company recognized export incentives amounting to 9.13 lakhs and liabilities/provisions no longer required written back amounting to 0.05 lakhs during FY 2026, as against nil in the previous year. Miscellaneous income also increased from 3.49 lakhs in FY 2025 to 6.99 lakhs in FY 2026, mainly due to higher interest income on staff loans. Rental income remained unchanged at 38.27 lakhs during the year.

Total Income

The total income of our company for the scal year 2026 was 15,628.56 lakhs, compared to 10,858.45 lakhs in the scal year 2025, re ecting an increase of 43.93%. This growth was driven by an increase in revenue from operations, which rose from 10753,59 lakhs in FY 2025 to 15238.58 lakhs in FY 2026 and increase in other income from 104.87 lakhs in FY 2025 to 389.98 lakhs in FY 2026

Expenditure

Cost of Material Consumed

In the scal year 2026, our company incurred 9306.26 lakhs towards the cost of materials consumed, compared to 6373.50 lakhs in scal year

2025 an increase of 46.01%. This rise was primarily driven by the scaling of our business and higher production volumes.

Change in Inventories of Work-in-progress & stock-in-trade

The change in inventories for Fiscal 2026 stood at (170.55) lakhs, compared to 7.66 lakhs in Fiscal 2025. The decrease in the change in inventories was primarily due to an increase in the closing inventory of work-in-progress and nished goods, which increased from 299.38 lakhs in FY 2025 to 469.93 lakhs in FY 2026. The higher closing inventory was mainly attributable to increased production during the year to support higher sales volumes.

Employee Bene t Expenses

Employee bene ts expense of our Company increased from 1,062.70 lakhs in Fiscal 2025 to 1,279.10 lakhs in Fiscal 2026, representing an increase of 20.36%. This increase was primarily attributable to annual salary increments provided to employees during the year. Further, gratuity expense increased consequent to the revision in basic salary in line with the new labour code, while leave encashment expense increased due to the revision in the basis of its calculation from basic salary to gross salary.

Finance Costs

Finance costs for Fiscal 2026 amounted to 11.75 lakhs, compared to 27.52 lakhs in Fiscal 2025, representing a decrease of 57.30%. This decrease was primarily attributable to a reduction in interest expense on cash credit facilities from 15.69 lakhs in FY 2025 to 6.78 lakhs in FY 2026, owing to lower utilization of working capital borrowings, and the absence of processing charges in FY 2026, as against 8.00 lakhs incurred in FY 2025. Further, interest on income tax declined from 3.43 lakhs in FY 2025 to 2.00 lakhs in FY 2026. However, this decrease was partially offset by an increase in interest expense on other loans from 0.41 lakhs in FY 2025 to 1.92 lakhs in FY 2026 and interest on delayed payment of statutory dues amounting to 1.05 lakhs in FY 2026, as against nil in the previous year.

Other Expenses

In Fiscal 2026, our other expenses amounted to 1,147.60 lakhs, compared to 1,104.94 lakhs in Fiscal 2025 an increase of 3.86%. This increase was

due to changes across various expense categories, including:

Legal, professional and consultancy charges increased from 74.48 lakhs in FY 2025 to 139.39 lakhs in FY 2026, primarily due to higher professional fees and additional consultancy, audit and compliance-related expenses incurred during the year.

Repairs and maintenance expenses increased from 55.85 lakhs in FY 2025 to 80.95 lakhs in FY 2026, primarily due to an increase in annual maintenance contract expenses of 2.08 lakhs, building repair and maintenance expenses of 2.37 lakhs, electrical repair and maintenance expenses of 6.49 lakhs and vehicle repair expenses of 9.98 lakhs.

Travelling and conveyance expenses increased from 111.26 lakhs in FY 2025 to 136.81 lakhs in FY 2026, primarily due to an increase in foreign travel expenses.

Corporate Social Responsibility expenses increased from 17.51 lakhs in FY 2025 to 30.00 lakhs in FY 2026, due to higher pro ts during the year.

Freight outward expenses increased from 48.19 lakhs in FY 2025 to 62.29 lakhs in FY 2026, primarily due to higher sales.

Insurance charges increased from 16.75 lakhs in FY 2025 to 23.48 lakhs in FY 2026, mainly due to an increase in marine insurance charges, asset and stock insurance charges and vehicle insurance charges on account of enhanced insurance coverage.

The above increases were partially offset by the following:

Business promotion expenses decreased from 166.22 lakhs in FY 2025 to 112.05 lakhs in FY 2026, primarily due to the absence of expenses relating to the World Perfumery Congress Exhibition and other ancillary expenses associated with the exhibition, which were incurred in the previous year.

Balances written off decreased from 35.43 lakhs in FY 2025 to 0.13 lakhs in FY 2026.

Vehicle running and maintenance expenses decreased from 42.82 lakhs in FY 2025 to 34.38 lakhs in FY 2026, primarily due to lower vehicle usage and reduction in fuel and maintenance costs during the year.

Of ce maintenance expenses decreased from 34.48 lakhs in FY 2025 to 28.62 lakhs in FY 2026, mainly due to lower administrative and upkeep expenses incurred for of ce premises during the year.

Pro t/ (Loss) before Tax

Our Company had reported a pro t before tax for the Fiscal year 2026 of 3808.56 lakhs against pro t before tax of 2142.57 lakhs in Fiscal year 2025. An increase of 77.80%. This increase was primarily driven by a 43.93% rise in total income since Fiscal 2025 and a reduction in total expenses as a percentage of total revenue, from 80.27% in Fiscal 2025 to 75.63% in Fiscal 2026.

Pro t/ (Loss) after Tax

Pro t after tax for the scal year 2026 stood at 2844.11 lakhs, compared to 1598.11 lakhs in scal year 2025 an increase of 77.97%, signi cantly outpacing the revenue growth of 41.71% over FY 2025. While total income increased by 43.93% over the previous scal year, total expenses rose by only 35.61%, contributing to the stronger pro tability.