Sandesh Ltd Management Discussions

Your Board of Directors is pleased to share with you the Business Performance along with the Audited Financial

Statements the financial year ended 31 st March, 2026.

ECONOMIC OVERVIEW GLOBAL ECONOMY

FY 2025-26 saw the global economy facing a demanding environment that unfolded across two separate periods.

Initially, financial performance was determined by a mix of dynamics ranging from favourable to hostile. Long-standing trade barriers, geopolitical friction, and inflation hovering above target thresholds in developed nations dampened the growth expectations. These headwinds were partially offset by robust spending on technological innovation, advantageous financial environments aided by a softening US dollar, and relaxed fiscal and monetary strategies in various territories.

This stability was fractured late in February 2026 due to the eruption of hostilities in the Middle East. Geopolitical events rapidly became the dominant influence on global financial confidence, impacting raw material costs, inflation forecasts, and general financial environments. Even though capital markets experienced a strain as risk caution expanded, general circumstances stayed fairly hopeful when judged against historic averages.

As predicted by the IMF in its April 2026 World Economic Outlook, international expansion is set to slow down to 3.1% in 2026 and 3.2% in 2027, dipping from the roughly 3.4% tracked at the start of CY 2025-26. This forecasted deceleration is mainly tied to increased energy expenses stemming from the tensions in the Middle East.

Global growth and inflation reference forecasts (in percent)

The consequences of this slowdown are anticipated to be more severe for developing and emerging nations that import raw commodities. While developed countries have shown durability, they stay vulnerable to the impacts of elevated risk aversion and more restrictive financing environments. On the flip side, commodity-exporting territories are poised to capture short-term advantages from increased energy and food prices.

Worldwide headline inflation is expected to briefly pivot from its downward trend, climbing from 4.1% in 2025 to 4.4% in 2026 before dropping down to 3.7% in 2027. This upward bump mostly stems from increased energy and food valuations tied to geopolitical tensions in the Middle East. This forecast emphasizes how vulnerable inflationary trends are to supply-chain disruptions, particularly in nations where domestic budgets are deeply affected by fuel and grocery costs.

Worldwide trade stayed durable throughout CY 2025-26, even though its makeup changed notably. The expansion of global trade volumes is predicted to decelerate from 5.1% in 2025 to 2.8% in 2026 before bouncing back to 3.8% in 2027. This cooling off is tied to a blend of elements. Numerous corporations pulled forward their imports during the opening half of the year to get ahead of projected tariff hikes, while the extended consequences of trade restrictions are anticipated to restrict worldwide business. Moving forward, enterprises will likely adjust by broadening their vendor options and reorganizing international supply pipelines, helping to soften some of these difficulties. Outbound shipments of both products and services are set to ease off during this projection timeline, though services commerce is expected to hold up better due to its built-in durability and positive long-range expansion trends.

Indicator	2025 (Actual)	2026 (Projected)	2027 (Projected)
Global GDP Growth (%)	3.4%	3.1%	3.2%
Global Headline Inflation (%)	4.1%	4.4%	3.7%
World Trade Volume Growth (%)	5.1%	2.8%	3.8%

The IMF has recommended a unified policy framework that pairs domestic adjustments with international teamwork. Crucial focuses involve preserving price and market stability, protecting fiscal durability via dependable spending cutbacks, and quickening structural adjustments. Correcting internal economic disparities is also considered vital, especially where those steps can help lower lopsided external balances. Policy adjustments designed to resolve internal inefficiencies through spending, structural, and corporate policy programs can foster healthier global expansion while bettering external balances.

International economic hazards stay skewed toward negative outcomes. Growing hostilities in the Middle East could fracture energy supply chains and spark a massive supply crisis, while persistent commercial conflicts continue to jeopardize global expansion. Capital market instability could also arrive from shifting investor sentiment regarding AI-associated profitability. On a positive note, quicker AI implementation could trigger a productivity surge, while cooling trade rivalries would foster healthier financial performance.

Source: https://www.imf.org/en/publications/weo/issues/2026/04/14/world-economic-outlook-april-2026

INDIAN ECONOMY

Indias economy during FY2025-26 demonstrated outstanding durability despite navigating global trade disputes, elevated geopolitical friction, and dropping consumer needs across dominant international markets. A heavy emphasis on stimulating internal demand, paired with preventative adjustments to trade policy, helped soften the blow of outside strains, such as tariff actions enacted by the United States and wider global instability.

Based on the IMFs April 2026 World Economic Outlook, Indias financial system is likely to grow at 6.5% in CY 2026, surpassing preceding forecasts. The forward drive created by the powerful results in 2025, alongside the scaling back of extra US tariffs on Indian outbound trade from 50% down to 10%, is anticipated to sustain development and partially counter the complications stemming from the Middle Eastern hostilities.

Inflationary strains decreased markedly throughout the year, ranking India among the top-performing major economies in this area. General headline inflation dropped from 4.6% in CY 2024 to 2.8% in CY 2025, pushed mostly by better food distribution networks. Conversely, underlying core inflation crept up from 3.8% to 4.6% over the identical timeframe. Headline inflation is predicted to climb to roughly 4.7% in 2026 as internal demand firms up, though it is anticipated to stay inside the RBIs official comfort bracket of 2% to 6%. The Indian rupee crossed 90 per US dollar in 2025 due to capital flight and a more relaxed monetary policy approach. Even so, robust involvement from everyday retail investors helped offer a stabilizing foundation for the wider capital markets.

Taxation and spending policies stayed centered on bolstering financial development and consumer purchasing. The Union Budget rolled out direct tax concessions for middle-class families, designed to elevate take-home pay and stimulate consumer spending. State-led capital spending was sustained at 3.4% of GDP throughout the opening half of the year, backed by ongoing financing for infrastructure and green-focused developments, such as clean energy initiatives. Government spending corrections also advanced consistently, with the fiscal gap shrinking to 4.8% of GDP in FY 2024-25 and planned to drop further to 4.4% in FY 2025-26, continuing the rebound from the pandemic-era peak of 9.2% in FY 2020-21.

From an international standpoint, India deals with challenges stemming from sluggish economic expansion in primary trade destinations, interruptions caused by tariff-centric trade policies, and periodic instability in worldwide investment flows. These elements could weigh on export demand and investor confidence. Within the country, eventual hurdles span from a potential bump in inflation as commercial momentum builds, slower-than-expected translation of policy interest rate cuts into actual loan growth, and softer tax revenues that could strain state budgets. Nonetheless, massive foreign currency assets, comparatively well-behaved inflation, and persistent headway on lowering the fiscal deficit offer vital cushions against these potential threats.

Sources: https://www.imf.org/en/publications/weo/issues/2026/04/14/world-economic-outlook-april-2026 https://www.pib.gov.in/PressReleseDetailm.aspx?PRID=2106921&reg=3&lang=2

INDUSTRY STRUCTURE AND DEVELOPMENT INDUSTRY OVERVIEW

The Indian Media and Entertainment (M&E) industry is undergoing a profound transformation, fueled by rapid digital adoption, evolving consumer preferences, and continuous technological innovation. Traditional boundaries between content creation, distribution, and consumption are becoming increasingly blurred, giving rise to an integrated digital ecosystem where audiences engage with content seamlessly across platforms and devices.

India has emerged as one of the worlds most dynamic media markets. Growth continues to be underpinned by Indias mobile-first consumption patterns, favourable demographics, expanding digital infrastructure, and supportive government policies. High-potential segments such as digital media, animation and visual effects (VFX), live events, music concerts, and creator-led content ecosystems are expected to remain key growth drivers in the coming years. The industrys evolution is further accelerated by increasing private equity participation, a thriving startup ecosystem, and strategic investments that foster innovation and enable businesses to scale. At its core, the industry continues to serve four fundamental objectives:

? Informing through reliable journalism and local community involvement

? Entertaining using engaging fictional and reality-based programming

? Enabling commerce by integrating brand narratives with buyer habits

? Empowering expression via social media, influencer networks, and professional circles

Economic Performance and Outlook

As per a EY Indias report titled Stories, scale and impact dated March 2026, the Indian M&E sector grew by INR 232 billion to reach INR 2.8 trillion (US$32 billion) in 2025, outpacing Indias nominal GDP per-capita growth of 7.7%. Excluding the online gaming segment, which was affected by regulatory restrictions on money gaming during part of the year, the industry recorded a robust growth rate of 11.8%. The sector currently contributes approximately 0.8% to Indias GDP, supports direct employment for around 2.8 million people, and generates indirect employment for over 10 million individuals.

Looking ahead, EY estimates the Indian M&E sector to grow to INR 2.9 trillion (US$32.9 billion) in 2026. Excluding the online gaming segment, the industry is expected to grow by approximately 8% in 2026 and subsequently maintain a CAGR of over 7%, reaching INR 3.3 trillion (US$37.9 billion) by 2028. Despite accounting for a relatively small share of the global M&E market, India remains among the fastest-growing media economies globally and is well positioned to strengthen its role as a leading content and entertainment hub.

Indian M&E Sector Growth and Segment Performance (INR Billion)

Segment	2022	2023	2024	2025	2026E	2028E	CAGR (2025- 2028)
Digital Media	571	686	851	1,110	1,301	1,640	14%
Television	726	711	679	617	587	535	(-5%)
Print Media	250	259	257	259	264	264	1%
Out-of-	48	54	59	67	74	85	8%
Home Media

As per EY, the Indian Media & Entertainment sector grew by 9.1% in 2025 to reach approximately INR 2.8 trillion, driven primarily by the strong performance of digital media, live experiences, and advertising-led segments.

Digital media continued to strengthen its position as the largest segment of the industry, while Out-of-Home advertising recorded robust growth on the back of premium inventory and increasing digital adoption. Traditional media segments such as television and print remained stable but continued to face structural shifts in audience consumption patterns.

E - Estimated

Print

Indias print media segment continues to demonstrate resilience despite the ongoing shift toward digital consumption.

Revenue for the print segment is driven by two factors: advertising and circulation. As per EY, the print segment is expected to grow at an overall CAGR of approximately 1% through 2028, with total segment value rising from INR 259.4 billion in 2025 to INR 264.2 billion by 2028. This modest overall growth reflects offsetting trends within the segment: advertising revenues are projected to grow by over 3% in 2026 and at a CAGR of approximately 2% through 2028, rising from INR 179.3 billion to INR 188.9 billion. Circulation revenues are expected to decline at a CAGR of approximately 2% over the same period, falling from INR 80.1 billion to INR 75.3 billion.

Digital Media

Digital media remains the largest growth driver within Indias media and entertainment industry. In 2025, digital advertising revenues grew by 26% to INR 947 billion, accounting for 63% of total advertising revenues, according to estimates by EY. Growth was fueled by strong demand from e-commerce and point-of-sale advertising, which surged 50% to INR 220 billion, as well as contributions from more than one million SME and long-tail advertisers. Subscription revenues also recorded significant growth, rising 60% to INR 163 billion. Paid video subscriptions expanded to 216 million subscriptions across 143 million households, supported by premium sports and entertainment content placed behind paywalls. Paid music subscriptions increased by 37%, while news subscriptions remained relatively limited due to the widespread availability of free news content.

Television

Television remains Indias most pervasive mass medium, reaching approximately 745 million viewers each week across all platforms and locations. The television segment is undergoing a significant transformation as Connected TV increasingly complements traditional broadcasting. Linear viewing models are gradually giving way to on-demand consumption, while advances in targeted and addressable advertising are improving campaign effectiveness and return on investment. Combined advertising revenues across Linear TV and Connected TV are projected to reach INR 377 billion by 2028, supported by improved targeting capabilities that are expected to attract greater participation from small and medium-sized advertisers. The industry is steadily moving from broad audience measurement metrics toward household-level targeting and outcome-based advertising models.

Out-of-Home (OOH)

The Out-of-Home advertising segment recorded strong growth of 13% in 2025, driven primarily by premium advertising properties and high-traffic locations. Digital Out-of-Home (DOOH) continues to emerge as a key growth driver, increasing its contribution to total segment revenues. The growing adoption of digital screens is enhancing campaign flexibility, audience engagement, and measurement capabilities, making OOH an increasingly important component of integrated advertising strategies. Sources: https://www.ey.com/content/dam/ey-unified-site/ey-com/en-in/insights/media-entertainment/documents/ey-stories-scale-and-impact-unlocking-indias-media-and-entertainment-economy.pdf

PRINT MEDIA

The print media segment remains an important component of Indias media and entertainment industry, demonstrating resilience despite accelerating digital adoption. Supported by strong readership loyalty, advertiser confidence, the continued influence of regional publications, the segment recorded growth in advertising revenues during 2025, even as circulation declined. Premium advertising formats, special supplements, and integrated marketing initiatives contributed positively to segment performance.

Print media continues to offer advertisers a highly credible environment, particularly for campaigns targeting affluent audiences and regional markets. Beyond newspapers, the segment encompasses magazines, specialty publications, and print-led media brands that continue to command influence among specific reader segments.

Challenges

The segment faces structural challenges arising from evolving media consumption habits and increasing digital penetration. Younger consumers increasingly favour digital channels for news, entertainment, and information, leading to pressure on circulation and subscription revenues. Rising operational costs and the slow pace of digital monetisation also remain key concerns for publishers.

As advertising budgets continue to migrate toward performance-driven digital channels, print media must demonstrate its unique value proposition in terms of trust, audience quality, and engagement.

Opportunities

Print medias established credibility and strong regional presence provide opportunities to expand premium advertising offerings, develop specialised publications, and strengthen audience engagement through events and experiential initiatives. Publishers can also leverage their content expertise and brand recognition to develop complementary digital products and subscription models.

The continued importance of local content and community engagement creates opportunities for publishers to maintain relevance among audiences seeking reliable, in-depth reporting and analysis.

Outlook

Print media is expected to remain a relevant medium within Indias evolving media landscape, particularly in regional markets where readership engagement remains strong. While growth rates may moderate compared to digital segments, the sectors trusted position and ability to serve niche and local audiences are likely to support long-term stability.

Success will increasingly depend on publishers ability to balance traditional strengths with digital transformation initiatives. These industry trends are directly relevant to the Companys print operations, given its established regional presence and Gujarati-language readership base, as discussed under Company Overview below.

NEWSPAPERS

Newspapers continue to occupy a unique position within Indias media ecosystem, benefiting from high levels of trust, strong local relevance, and deep penetration across regional markets. Unlike many mature markets where print readership has declined sharply, Indian newspapers continue to maintain meaningful engagement, particularly in regional language markets and Tier II and Tier III cities. In 2025, newspaper publishers benefited from growth in advertising revenues, driven by premium ad formats, local business advertising, and continued demand from sectors seeking credible and trusted media environments. Print is increasingly functioning as a performance advertising medium, prompting measurable consumer action rather than serving only to build brand awareness. One in three print ads carried a call to action, whether through a QR code, a time-bound offer, an e-commerce or quick-commerce incentive, a contest, or another form of engagement. Product launches and platform-day offers increasingly integrated the newspaper with the mobile phone, a trend that appears likely to continue. The following section presents a breakdown of how newspaper advertisements were utilised in this manner during 2025.

Challenges

The newspaper industry continues to face changing consumer behaviour, particularly among younger audiences who increasingly consume news through digital and social media platforms. This shift has contributed to a gradual decline in circulation and subscription revenues. Publishers are also challenged by the relatively low contribution of digital revenues compared to global peers, limiting their ability to fully offset pressures on traditional revenue streams.

Competition from digital-first news platforms, changing advertising preferences, and the growing influence of algorithm-driven content discovery further intensify the need for newspapers to evolve their business models while preserving editorial credibility.

Opportunities

The increasing demand for trustworthy and verified information presents a significant opportunity for newspaper publishers. As misinformation and unverified content proliferate online, established newspaper brands are well positioned to leverage their reputation for accuracy and credibility.

Publishers can further strengthen their market position through hyperlocal reporting, premium content offerings, digital subscriptions, community-focused initiatives, and integrated advertising solutions. Regional language publications, in particular, remain wellplacedtobenefit from growing literacy levels and increasing economic activity across non-metro markets.

Outlook

While circulation growth may remain constrained by the ongoing shift toward digital consumption, newspapers are expected to retain an important role within Indias media landscape. Their strong brand equity, local market relevance, and trusted editorial positioning are likely to support long-term sustainability. Future growth will increasingly depend on publishers ability to diversify revenues, strengthen digital engagement, and build integrated print and digital content ecosystems. The Companys newspaper business is well placed to draw on these trends, given its established trust and deep regional penetration across Gujarati-language markets, a position discussed further under Company Overview below.

DIGITAL MEDIA

Digital media remained the largest and fastest-growing segment of Indias media and entertainment industry in

2025, crossing the INR 1 trillion revenue milestone for the first time. The segments growth was primarily driven by digital advertising, which accounted for nearly two-thirds of total advertising revenues across the media sector. Strong growth in subscription revenues, fueled by video streaming and music platforms, further contributed to the segments expansion.

Digital Subscription

Indias mobile-first consumption patterns continue to underpin digital media growth. Rising smartphone penetration, affordable data costs, increasing internet access, and the growing popularity of short-form video, social media, gaming, and streaming platforms have significantly expanded digital consumption across both urban and rural markets.

Challenges

Despite robust growth, the segment faces increasing competition for consumer attention and advertising expenditure. The abundance of content available across platforms makes audience retention increasingly difficult, requiring continuous investment in content, technology, and user engagement.

Monetisation remains a challenge for several categories, particularly in balancing advertising-supported and subscription-based models. Rising customer acquisition costs, content production expenses, and platform investments may also impact profitability as competition intensifies.

Opportunities

Digital media is well positioned to benefit from the continued expansion of Indias internet economy. The increasing participation of small and medium enterprises in digital advertising, growth in e-commerce advertising, and advancements in artificial intelligence and data analytics are creating new avenues for revenue generation.

Connected television, personalised content recommendations, creator-led ecosystems, and regional-language content represent significant growth opportunities. The ability to deliver targeted advertising and measurable outcomes continues to attract advertisers seeking greater efficiency and return on investment.

Digital advertising will grow at 14% to reach INR1,393 billion

Composition of digital ad revenues

Outlook

Digital media is expected to remain the primary growth engine of Indias media and entertainment industry. As internet penetration deepens and digital consumption becomes increasingly mainstream, the segment is likely to witness sustained growth across advertising, subscriptions, content creation, and technology-enabled services. Continued innovation in content formats, commerce integration, and audience engagement will further strengthen its market position. The Companys own digital initiatives, including its mobile applications and digital editions, position it to capture this growth alongside its established print and regional media presence, as discussed further under Company Overview below.

TELEVISION

Television continues to serve as Indias largest mass communication platform. Despite changing viewing habits, it continues to offer advertisers unparalleled scale and reach. The sector is increasingly evolving beyond traditional broadcasting, with connected television emerging as a significant growth area and attracting growing consumer adoption. Large-screen viewing continues to hold strong appeal among Indian audiences, particularly for entertainment, sports, and family-oriented content.

Challenges

The television segment faced pressure during 2025 due to declining advertising and subscription revenues.

Advertisers increasingly shifted budgets toward digital platforms offering enhanced targeting capabilities, while pay-

TV subscriptions declined as consumers explored streaming alternatives and internet-enabled viewing options. The segment also faces the challenge of remaining relevant to younger audiences whose content consumption patterns are increasingly digital-first.

Opportunities

The growth of connected television presents an opportunity to combine televisions mass reach with the precision and measurability associated with digital platforms. Broadcasters can create integrated viewing experiences, strengthen cross-platform advertising solutions, and develop innovative monetisation models.

Partnerships with digital platforms and content bundling initiatives may further enhance audience retention and revenue generation.

Outlook

Television is expected to remain a cornerstone of Indias media ecosystem despite ongoing disruption. While traditional broadcasting may face gradual pressure, the continued growth of connected television and hybrid viewing models is likely to support the segments long-term relevance and evolution. These trends are directly relevant to the Companys television operations through Sandesh News, its 24/7 Gujarati news channel, which is well positioned to benefit from sustained regional viewership and a growing trend of partnerships with digital platforms.

OUT-OF-HOME (OOH) MEDIA

The OOH advertising segment recorded strong growth in 2025, supported by increased consumer mobility, infrastructure development, and rising advertiser demand for high-visibility media formats. Airports, metro networks, commercial districts, and premium urban locations remained important contributors to segment growth.

Digital Out-of-Home (DOOH) continued to gain momentum, increasing its share of overall segment revenues and driving greater advertiser interest through dynamic and flexible advertising formats.

Challenges

The segment faces increasing pressure to deliver measurable outcomes and audience insights comparable to digital advertising channels. Continued investments in digital infrastructure, audience measurement technologies, and premium inventory management are essential to maintaining competitiveness.

Operational and regulatory complexities associated with outdoor advertising infrastructure also remain ongoing considerations.

Opportunities

The expansion of urban infrastructure, smart city initiatives, and public transportation networks provides substantial opportunities for future growth. The increasing adoption of digital screens and programmatic advertising capabilities enables more targeted and responsive campaigns, improving campaign effectiveness and advertiser value.

Integrated omnichannel campaigns that combine OOH with digital and mobile platforms are also creating new opportunities for audience engagement.

Outlook

The OOH segment is expected to maintain strong growth momentum as advertisers increasingly seek impactful and measurable brand-building channels. Continued investment in DOOH infrastructure, technology-enabled targeting, and premium locations is likely to support sustained growth and strengthen the segments role within Indias advertising landscape. These trends are directly relevant to the Companys OOH operations through Spotlight, its Out-of-Home media solutions vertical, which is positioned to benefit from rising advertiser demand for high-visibility, regionally targeted placements across Gujarat, as discussed further under Company Overview below.

Source: https://www.ey.com/content/dam/ey-unified-site/ey-com/en-in/insights/media-entertainment/documents/ey-stories-scale-and-impact-unlocking-indias-media-and-entertainment-economy.pdf

COMPANY OVERVIEW

The Sandesh Limited is a major Indian media enterprise based in Ahmedabad, Gujarat, boasting a deep history that stretches across more than ten decades. Registered as a corporate entity on March 11, 1943, the organization has progressed from a trailblazing newspaper publisher into a multifaceted media group with a prominent footprint across multiple distribution channels.

The core commercial activity of The Sandesh Limited centers on the printing and distribution of newspapers and magazines. Its premier offering is “SANDESH,” a dominant Gujarati daily newspaper that commands a powerful following throughout the Gujarat area. The enterprise prints several distinct editions across major urban hubs in Gujarat, which include Ahmedabad, Vadodara, Surat, Rajkot, Bhavnagar, and Bhuj. Beyond its print business, the Company has expanded into complementary verticals, including Sandesh News, its 24/7 Gujarati news television channel, Spotlight, its Out-of-Home media solutions vertical, and a growing suite of digital offerings spanning mobile applications and digital editions.

At present, the commercial operations of The Sandesh Limited are directed by Mr. Falgunbhai C. Patel (Chairman & Managing Director), Mr. Parthiv F. Patel (Managing Director), and Shri Rahoulbhai Shah (Whole-time Director), who are backed by an experienced executive management group.

The firms long-lasting heritage is anchored in a dedication to credible and unbiased reporting, providing its audience with informative and insightful news analysis. Its ongoing adjustment to the changing media environment, as it moves from physical print to online and television broadcasting, highlights its progressive strategy and commitment to preserving its role as a leading and trusted media provider in Gujarat.

SWOT ANALYSIS Strengths

? Dominant regional footprint and a devoted audience base in Gujarat.

? Multifaceted media assets spanning Print, Online, Television, and Out-of-Home sectors.

? Reputation for reliability and high standards of reporting.

? Fiscal stability supported by rigorous internal management systems.

? Anticipatory digital evolution through initiatives like mobile applications and digital editions.

Weaknesses

? Regional focus limited primarily to one state.

? Financial reliance on the traditional print sector for primary income.

? Digital and OOH revenue streams remain nascent relative to the core print business, limiting diversification of income.

? Content anchored in the Gujarati language constrains reach among non-regional or younger, Hindi/English-dominant audiences.

Opportunities

? Expanding online usage will open doors for income through digital marketing and paid memberships.

? Heightened interest in regional language and neighborhood-specific journalism.

? Expansion of OOH marketing, particularly within smaller and developing urban centers.

? Application of data insights to customize news features and promotional content.

Threats

? Changing audience habits as viewers move from physical papers to online platforms.

? Strong rivalry from nationwide media houses and exclusively digital news providers.

? Escalating operational expenses, such as the price of newsprint and logistics

? Policy updates from regulators concerning media content and marketing rules.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company upholds a powerful internal control architecture specifically customized to match the magnitude and character of its activities. This framework is strictly consistent with all legal and regulatory requirements, ensuring that every transaction is documented precisely and promptly, and that financial disclosures remain reliable. Central to the Companys functioning is a clearly established risk management structure that is deeply embedded in its commercial workflows. To improve operational efficiency and the accuracy of its data, the Company utilizes an Enterprise Resource Planning (ERP) platform (SAP) for its full range of accounting tasks. A key illustration of the Companys preventative risk management is its strategy regarding the volatility of newsprint costs; it closely tracks market shifts and organizes its procurement tactically to maintain seamless operations and maximize profit margins. The Companys extensive risk management setup is built to detect, oversee, and manage internal corporate business hazards, tackling them through knowledgeable and impartial methodologies. The Board of Directors has officially implemented a Risk Management Policy that categorizes recognized threats and details the relevant response plans. This process guarantees that any possible dangers are spotted, evaluated, and neutralized in a timely manner according to established corporate guidelines.

Additional governance is delivered by the Audit Committee of the Board of Directors, which frequently evaluates the internal control framework and the findings submitted by the Companys Internal Auditors. Moreover, the Company preserves a solid whistleblower program for staff to air grievances, verifying that no worker was prevented from reaching out to the Audit Committee or its Chairperson throughout the previous year.

DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS

The Company considers its staff to be the essential builders of its success, far more than just employees. The firm promotes an environment of ongoing education, enabling its personnel to take on obstacles, create new solutions, and offer unique viewpoints. This tactical funding of its team leads directly to a major market edge, allowing the firm to provide outstanding outcomes reliably. The combined expertise, enthusiasm, and teamwork of its staff are what truly set the company apart.

The Companys devotion to its people goes past simple acknowledgement to proactively developing a workplace that prioritises wellness. This includes making staff-focused choices intended to reduce pressure and encourage a peaceful setting, while firmly protecting the health and safety of the whole crew. Additionally, the firm is completely committed to maintaining top-tier behavioral standards, strictly following the PoSH Act, 2013, to ensure a secure and dignified workplace for everyone.

As of March 31, 2026, the Organization is proud to have a workforce of 434 committed and highly driven staff members. Their constant dedication and input are central to the firms continued expansion, progress, and financial success, as well as their own career growth, a clear sign of the firms supportive HR strategies and positive employment environment.

DISCUSSION OF FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE Summary Financial Information

	Standalone		Consolidated
Particulars	2025-26	2024-25	2025-26	2024-25
Revenue from Operations	43,782.03	29,234.32	43,970.39	29,418.38
Other Income	1,823.78	3,705.56	1,836.57	3,729.94
Total Revenue	45,605.81	32,939.88	45,806.96	33,148.32
Operating Expenditure (excl. Depreciation & Finance Cost)	34,974.99	22,345.43	35,332.88	22,574.70
EBITDA	10,630.82	10,594.45	10,474.08	10,573.62
EBITDA Margin	23.31%	32.16%	22.87%	31.90%
Finance Cost	17.33	20.36	17.33	20.36
Depreciation & Amortisation Expenses	693.30	722.31	700.72	732.02
Total Expenditure	35,685.62	23,088.10	36,050.93	23,327.08
Exceptional Item	(201.94)	47.49	(202.94)	47.49
Profit Before Tax	9,718.25	9,899.27	9,553.09	9,868.73

 

	Standalone		Consolidated
Particulars	2025-26	2024-25	2025-26	2024-25
Tax Expenses (Current, Deferred & Other Tax Expenses)	2,977.96	2,153.61	2,968.76	2,156.58
Profit After Tax	6,740.29	7,745.66	6,584.33	7,712.15
PAT Margin	15.40%	26.50%	14.97%	26.21%
Dividend (% of Paid-up Share Capital)	50%	50%	N.A	N.A.

Summary Financial Ratio

( in Lakhs)

Particulars	2025-26	2024-25	% Change	Reasons for Change
Debtors Turnover (times)	6.72	6.29	6.97%
Inventory Turnover (times)	2.79	11.81	-76.36%	Ratio declined during the year due to higher growth in average inventory as compared to growth in sales.
Interest Coverage Ratio (times)	--	--	--	--
Current Ratio (times)	15.86	19.38	-18.15%
Debt Equity Ratio (times)	--	--	--	As Company has no
				debt, the ratio is not
				calculated.
Return on Capital Employed (%)	6.90	7.49	-7.98%
Operating Profit Margin (%)	22.70	33.77	-32.78%	Decrease in ratio due to unrealised loss on investment made in Equity Shares and Mutual Funds designated as FVTPL.
Net Profit Margin (%)	15.40	26.5	-41.89%	Decrease in ratio due to unrealised loss on investment made in Equity Shares and Mutual Funds designated as FVTPL.
Return on Net Worth (%)	4.86%	5.94	-18.23%	N.A.

COMPANY OUTLOOK

The Company remains focused on strengthening its position as Gujarats most trusted regional media house amid the continuing shift toward digital-first consumption. Its deep-rooted regional presence, multi-decade credibility, and Gujarati-language readership base provide a strong foundation to navigate this transition across its diversified media portfolio.

The Company will continue to build on its multi-vertical structure spanning print, television, digital, and out-of-home media. In print, the focus remains on defending circulation and advertising share through hyperlocal reporting and continued print-digital integration. Sandesh News is well placed to benefit from the shift toward connected and hybrid viewing models, while Spotlight stands to gain from growing Out-of-Home and Digital Out-of-Home demand, particularly in Gujarats expanding Tier II and Tier III markets. On the digital front, continued investment in mobile applications and digital editions will help the Company capture a growing share of digital advertising and subscription revenue. Across all verticals, the Companys priority is to convert its editorial credibility into measurable value for advertisers and audiences, while strengthening internal systems and governance to support sustainable growth. This integrated, multi-channel approach positions the Company well to capitalise on the opportunities presented by Indias evolving media and entertainment industry over the coming year.

RISK MANAGEMENT

In a constantly changing and increasingly intricate commercial landscape, efficient risk management is vital to maintaining long-term development and durability. The Company implements an anticipatory and systematic methodology to spot, evaluate, and neutralize potential hazards that could affect its daily functions, brand image, or fiscal outcomes.

Risk Management Policy

The Company has constituted a Risk Management Committee (“RMC”) pursuant to Regulation 21 of the SEBI Listing Regulations to oversee the framing, implementation and monitoring of the Companys risk management plan. The RMC defines the risk management policy and promotes its implementation across the organization, ensuring ongoing assessment of risks and that the risk management process remains sustained across all departments. The Committee meets at least twice a year to review the risk management framework, and monitors the status of mitigation for the Companys top business risks on a half-yearly basis. The Audit Committee complements this oversight by evaluating the effectiveness of risk management systems as part of its terms of reference.

Risk identification and assessment follow a structured process encompassing planning, monitoring, measurement and periodic reassessment. Risks are classified across financial, operational, compliance, reputational, cyber, sustainability, legal and market categories, among others, and prioritized based on their likely impact, probability and velocity. Every employee is treated as a risk owner responsible for implementing mitigation actions within their function, with outcomes reported to management and reviewed by the RMC. The Company also maintains a Business Continuity

Plan, supported by periodic disaster-recovery drills, to ensure a rapid and coordinated response in the event of a crisis.

Key Risks and Mitigation Strategies

Risk	Description	Mitigation Strategy
Competition Risk	National media organizations are increasingly covering local news, creating direct competition for regional publishers. Their larger financial resources, wider reach, and stronger brand recognition may attract audiences away from local media outlets across both print and digital platforms.	Differentiate through in-depth, high- quality local journalism focused on regional issues, communities, and hyperlocal developments. By providing greater context, analysis, and relevance than national competitors, the Company strengthens audience loyalty and reinforces its position as a trusted local news source.
Editorial Independence Risk	External influences from advertisers, political entities, or interest groups may compromise editorial independence, leading to biased reporting, loss of credibility, and erosion of public trust.	Maintain strict editorial standards, ethical journalism practices, and robust governance policies to prevent undue influence. Ensure all content is balanced, fact-checked, and objective while fostering a culture of professional integrity across the organization.
Financial Risk	Economic downturns in local markets may reduce advertising revenues, lower subscription income, and negatively impact overall financial performance.	Diversify revenue streams to reduce dependence on any single source of income. A balanced business model enhances financial resilience and helps the Company navigate economic effectively.
Regulatory and Compliance Risk	Changes in media regulations, content guidelines, advertising standards, and other legal requirements may affect business operations. Non-compliance could result in fines, legal action, or reputational damage.	Maintain a dedicated legal and compliance function to monitor regulatory developments, ensure adherence to applicable laws, and conduct regular training programs to keep employees informed about compliance obligations.
Technology Risk	Rapid technological advancements require continuous upgrades to digital platforms and content delivery systems. Failure to adapt may result in declining audience engagement and loss of competitiveness.	Invest in modern digital tools, analytics platforms, and audience engagement technologies. Continuously monitor emerging trends and integrate relevant innovations to maintain operational efficiency and digital relevance.
Reputation Risk	The spread of misinformation, public controversies, or adverse perceptions can damage the Companys reputation, reduce audience trust, and impact readership.	Leverage the Companys longstanding legacy and commitment to credible journalism. Strengthen community engagement, maintain transparency, uphold high editorial standards, and proactively address misinformation to preserve public confidence and brand reputation.
Cybersecurity and Data Privacy Risk	Cyberattacks, data breaches, or system disruptions can compromise subscriber data, advertiser information, and proprietary content, damaging the Companys reputation and inviting regulatory scrutiny.	Strengthen access controls and IT security protocols across digital systems. Conduct periodic security reviews, invest in employee awareness, and proactively monitor for emerging threats to safeguard data integrity and stakeholder trust.
Raw Material and Input Cost Risk	Volatility in newsprint prices, driven by global pulp and paper market conditions, currency fluctuations, and supply disruptions, can adversely affect the Companys operating margins in the print segment.	Track market shifts closely and organize procurement tactically. Maintain supplier chainrelationships and monitor pricing trends to sustain seamless operations and maximize profit margins.

ACCOUNTING TREATMENT AND CAUTIONARY STATEMENT

During the reporting period, there has been no deviation from the accounting treatments prescribed under the applicable Accounting Standards. The financial statements have been prepared in compliance with the prescribed standards, and no alternative treatment has been adopted.

This discussion and analysis contain forward-looking statements that are subject to risks and uncertainties. The Company assumes no obligation to publicly update or revise these statements, whether as a result of new information, future developments, or otherwise. Actual outcomes, including financial results, performance, or achievements, may differ materially from those anticipated or implied. Information presented in this report has been sourced from publicly available materials. Any inaccuracies or discrepancies in such details are entirely unintentional and incidental. Readers are advised not to place undue reliance on forward-looking statements, which reflect the Companys views only as of the date of this document. This discussion should be read in conjunction with the Companys audited financial statements and accompanying notes, as presented herein.