Your Directors have pleasure in presenting this Management Discussion and Analysis Report for the year ended on March 31, 2026.

INDUSTRY STRUCTURE AND DEVELOPMENTS:

Packaging Market in India:

Indias packaging industry continues its robust growth trajectory, driven by e-commerce expansion, rising FMCG demand, urbanization, and increasing consumer preference for convenient and sustainable packaging. The sector is converging with global standards, with organized players gaining prominence. Key drivers include growth in food & beverages, pharmaceuticals, personal care, and white goods. Sustainability remains a major theme, with emphasis on recyclable and eco-friendly materials. Supported by consumer trends, innovation, and government policies, the India Packaging Market is set for ongoing expansion, playing a crucial role in the nations manufacturing and retail landscapes.

India - Flexible Packaging Market:

The India Flexible Packaging Market, valued at approximately USD 20.41 Billion in 2025, maintained strong momentum during FY 2026, growing at a CAGR of around 11.46% to reach USD 35.11 Billion by 2030. Flexible formats remain dominant due to their cost-effectiveness, versatility, lightweight properties, and excellent suitability for e-commerce and quick-commerce logistics. Plastic-based flexible packaging continues to hold a significant market share in the packaging industry.

Tube Packaging Market Trends:

The global tube packaging market size in 2026 is estimated at 55.69 billion units (from 52.95 billion in 2025), projected to reach 71.64 billion units by 2031 at 5.17% CAGR. The laminated tubes (ABL & PBL) are preferred for barrier protection (oxygen, moisture, UV, contamination), shelf-life extension, portability, and premium aesthetics. The global laminated tube market was valued at USD 1,721 million in 2025 and is projected to grow from USD 1,820.01 million in 2026 to USD 2,978.64 million by 2034 at 6.35% CAGR. The tube packaging market is expanding steadily, supported by demand in oral care, pharmaceuticals, cosmetics, food industries and personal care.

SRMTLS PERFORMANCE AS INDUSTRY:

SRMTL is an ISO 9001:2015, ISO 15378:2017 and DMF-type III certified Company engaged in providing primary packaging solution. We currently manufacture a wide and diverse range of packaging products such as laminated tubes (Lami Tubes), Tube laminates and Flexible laminates. Our products are primarily used for oral care, pharmaceuticals, cosmetics and fast-moving consumer goods (FMCG) sectors. Our products are available in different sizes, diameters and circular shape as per the specifications of our customers.

Your companys major product is laminated Tubes and laminates, which are primarily used for packaging products in paste or gel form across oral care, pharmaceuticals, cosmetics, and FMCG sectors. Production related to Tubes was increased by 20% as compared to last year.

SEGMENT-WISE/PRODUCT WISE PERFORMANCE:

The Company operates primarily in a single segment, i.e., manufacturing of Packaging Materials comprising Multilayer Laminated Tubes and Tube Laminates. During the year under review, the

Company witnessed strong performance in its Laminated Tubes and Laminates business, driven by healthy demand from both domestic and export markets. The Companys performance was further supported by improved capacity utilization, a greater focus on value-added products, enhanced operational efficiencies and sustained customer relationships, all of which contributed significantly to its growth and profitability.

OPPORTUNITIES, THREATS AND RISK PERCEPTION:

The Company believes that opportunities abound due to strong growth in end-user industries (FMCG, pharmaceuticals, personal care, and cosmetics), rising exports potential (Europe, Middle East, and Africa), and increasing substitution of traditional formats with tubes. Demand for high-barrier, premium, and aesthetically packaging featuring with high-quality graphics, 360° printing, metallic/matte finishes, and innovative designs is rising, supported by growing skincare and cosmetic consumption in developing economies, urbanization, rising disposable incomes, and Government initiatives such as Make in India. The shift toward sustainable and recyclable/mono-material (PE/PP) tubes, digital printing for short-run customization and personalization, along with broader sustainability initiatives, further enhance growth potential.

Threats and challenges includes intense competition from organized and unorganized players, raw material price volatility (plastics, polymers, resins, aluminium foil), rising energy and transport costs, global supply chain disruptions, and stringent environmental regulations on plastics and recycling. Additional restraints involve the recycling complexity of multi-layer laminates (especially aluminium barriers), regulatory push toward mono-materials, and the need to balance superior barrier performance with sustainability, cost, and compliance requirements.

The Company also remains mindful of evolving geopolitical developments, including conflicts in the Middle East and other regions, which may disrupt global trade routes, shipping logistics, or energy supplies. Any escalation of geopolitical tensions, including potential disruptions to key maritime routes such as the Strait of Hormuz, could result in higher crude oil prices, increased freight costs, and volatility in the prices and availability of petrochemical-based raw materials, including plastic granules and polymers used in the packaging industry. Such developments may impact input costs, procurement timelines, and operating margins.

The key trends shaping the market include transition to sustainable designs (reduced-aluminum, PCR-integrated, fully plastic), premium finishes (matte, soft-touch, holographic), digital printing, light weighting, tamper-evident features, and smart packaging elements (e.g., QR codes).

Your Company is well-positioned with modern technology, strong customer relationships, and a focus on innovation to leverage emerging opportunities while navigating sustainability and competitive challenges.

RISK AND CONCERNS:

The packaging industry remains highly competitive with significant capacity additions by players, exerting pressure on pricing and margins. The Companys profitability is vulnerable to fluctuations in petrochemical-based raw material prices, fuel, energy, and freight costs. Geopolitical uncertainties, particularly conflicts in the Middle East, pose risks of disruption to the Strait of Hormuz and other critical trade routes. Such events could cause sharp increases in crude oil prices, leading to higher costs and volatility in plastic granules, polymers, and other petroleum-derived materials, thereby impacting the Companys cost structure and supply chain.

Additionally, stringent environmental regulations, including Plastic Waste Management and Extended Producer Responsibility (EPR) norms, necessitate continuous compliance and investment in sustainable solutions. The Company closely monitors macroeconomic conditions, inflation, foreign exchange volatility, and shifting consumer preferences. Through prudent procurement, operational efficiencies, innovation, and proactive risk management, the Company aims to mitigate these risks and sustain longterm growth.

BUSINESS OUTLOOK

The laminate Tube industry is expected to witness steady growth over the next few years, driven by rising demand from the personal care, cosmetics, and pharmaceutical sectors, where product protection, aesthetics, and convenience are key. As brands seek sustainable and cost-effective packaging solutions, LamiTubes are gaining traction due to their lightweight, hygienic, and customizable properties. The push toward recyclable and mono-material tubes is creating new opportunities for innovation, particularly among manufacturers investing in eco-friendly materials and advanced printing technologies. While raw material cost volatility and recycling challenges persist, the overall market outlook remains positive, especially in emerging economies where urbanization and consumer spending are on the rise. We have added latest technology machines to stay at the forefront of the competition going forward.

INTERNAL CONTROL SYSTEMS AND ITS ADEQUACY

The Company has adequate and effective internal controls to provide reasonable assurance on achievement of its operational, compliance and reporting objectives. The Company has deployed controls through its policies and procedures. These policies and procedures are periodically revised to ensure that they remain updated to changes in the environment. There is a well laid out process for making amendments to processes in the Company and implications of changes are well thought through and all stakeholders are consulted so that implementation is smooth.

Internal Audit as part of their audits, review the key processes from an adequacy of controls point of view. Suggestions to further strengthen the processes or to make them more effective are shared with the process owners and changes are made suitably.

The Company believes in conducting business in a fair, ethical and compliant manner. In this regard, periodic meetings to make the employees aware of the code of conduct are held. The Company has designed its software tool which helps track key compliances as close as possible to the actual due date. Any deviations are highlighted for prompt corrective action. Functional heads take responsibility for putting in preventive steps. The internal financial control system is also included in the board report.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

Your Companys total revenue from operations during the year under review was 239.68 Crore as compared to 207.84 Crore of previous year which shows an increase of 15.32% over the previous year figure. The other income was 3.79 Crore during the year under review. The EBITDA of the Company during the year was 44.25 Crore. The profit for the Financial Year 2025-26 was 24.76 Crore.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/ INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

The Company attaches importance to the dignity of employee irrespective of position and highly values the cultural diversities of employees. As on March 31, 2026, the total number of permanent employees on the roll of the company is 358. The company is committed to nurturing, enhancing and retaining its top talent through superior learning and organizational development. This is a part of our Corporate HR function and is a critical pillar to support the organization s growth and its sustainability in the long run.

DETAILS OF SIGNIFICANT CHANGES (i.e. CHANGE OF 25% OR MORE AS COMPARED TO FY-2024-25) IN KEY FINANCIAL RATIOS

. No.	Ratio	Year 2025-26	2024-25
1	Debtors Turnover	4.38 times	4.43 times
2	Inventory Turnover	6.41 times	6.74 times
3	Interest Coverage Ratio*	32.99 times	16.98 times
4	Current Ratio **	3.29	2.43
5	Debt Equity Ratio ***	0.12	0.25
6	Operating Profit Margin ^	14.55%	11.27%
7	Net Profit Margin $	10.40%	24.93%
8	Return on Net Worth $	13.95%	33.52%

* Increase in Interest Coverage Ratio due to increase in profit as compared to previous year. ** Increase in Current Assets Ratio due to increase in current assets and decrease in current liabilities as compared to previous year. *** Decrease in Debt Equity Ratio due to decrease in borrowings as compared to previous year. ^ Increase in Operating Profit Margin due to increase in Operating Profit as compared to previous year. $ Decrease in Net Profit Margin as well as Return on Net Worth due to decrease net profit as compared to previous year.

Cautionary Statement:

Estimates and expectations stated in this Management Discussion and Analysis may be forward-looking statement within the meaning of applicable laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to your Companys operations include economic conditions affecting demand / supply and price conditions in the domestic and international markets, changes in the Government regulations, tax laws, other statutes and other incidental factors.