Shree Tirupati Balajee Agro Trading Co. Ltd Management Discussions

1. Economic overview Global Economy

The Global Economy in 2026 continued to demonstrate resilience during the year; however, the economic landscape became increasingly challenging following heightened geopolitical tensions, persistent inflationary pressures, and tighter global financial conditions. According to the International Monetary Funds (IMF) World Economic Outlook for April 2026, the outbreak of conflict in the Middle East significantly altered the global macroeconomic outlook by disrupting commodity markets, increasing energy prices, and elevating uncertainty across international trade and investment.

The projected global economic growth is devised at 3.1% in 2026 and 3.2% in 2027, reflecting a moderation from recent growth levels and remaining below the historical pre-pandemic average. The revised outlook assumes that geopolitical disruptions remain contained and that global energy markets gradually stabilize. Nevertheless, the global economy continues to face downside risks arising from prolonged geopolitical conflicts, supply chain disruptions, trade fragmentation, elevated public debt levels, and financial market volatility.

Inflationary pressures have re-emerged due to higher commodity and energy prices, resulting in a temporary increase in global headline inflation during the year 2026 before an anticipated moderation in 2027. Consequently, central banks across major advanced and emerging economies are expected to maintain a cautious monetary policy stance, balancing inflation control with the objective of supporting economic growth. Higher interest rates and tighter financing conditions may continue to influence capital flows, corporate investments, and consumer demand across several economies.

Advanced economies are projected to experience relatively modest economic expansion amid slower domestic demand, higher borrowing costs, and ongoing structural adjustments. Emerging market and developing economies are expected to continue outperforming advanced economies in aggregate; however, growth prospects remain uneven across regions depending on commodity exposure, fiscal capacity, external financing conditions, and domestic policy responses. Economies with strong domestic demand, sound macroeconomic fundamentals, and continued investment in technology and infrastructure are expected to demonstrate comparatively greater resilience.

Global trade and investment activity remain influenced by evolving geopolitical developments, supply chain re-alignments, and increasing policy emphasis on economic security and strategic resilience. Businesses worldwide continue to diversify sourcing strategies, enhancing operational flexibility, and accelerating digital transformation initiatives to mitigate external risks. At the

same time, rapid technological advancement, particularly in artificial intelligence, automation, and digital infrastructure, is expected to remain an important long-term driver of productivity and economic growth despite near-term macroeconomic uncertainties.

Looking ahead, the global economic outlook remains subject to significant uncertainty. Key risks include escalation of geopolitical conflicts, sustained commodity price volatility, tighter-than- expected financial conditions, elevated sovereign debt vulnerabilities, and continued fragmentation of global trade. Conversely, faster technological adoption, easing inflationary pressures, improved supply chain resilience, and supportive macroeconomic policies could strengthen global growth prospects over the medium term. Policymakers across jurisdictions are therefore expected to continue focusing on preserving macroeconomic stability, maintaining financial system resilience, and implementing structural reforms aimed at supporting sustainable and inclusive long-term growth.

The Company continues to closely monitor global macroeconomic developments and their potential implications for business operations, supply chains, customer demand, financing conditions, and overall risk management. While external uncertainties remain, the Company remains committed to maintaining operational resilience, prudent financial management, and disciplined execution of its long-term strategic objectives.

Source:

https://www.imf.org/en/publications/weo/issues/2026/04/14/w

orld-economic-outlook-april-2026

Indian Economy

The Indian economy maintained its strong growth trajectory during FY 2025-26 despite a challenging global environment marked by geopolitical uncertainties, evolving trade dynamics, commodity price volatility, and uneven global growth. Supported by strong domestic demand, sustained public investment, improving private sector activity, and continued structural reforms, India remained among the fastest-growing major economies globally. The economys resilience was further supported by sound macroeconomic fundamentals, a stable financial system, and policy measures aimed at enhancing productivity, competitiveness, and long-term sustainable growth.

According to the Department of Economic Affairs (DEA), Indias economic growth remained broad-based during FY 2025-26, supported by strong performance across manufacturing, construction, trade, financial services, transportation, communication, and other services sectors. Private consumption continued to remain a key driver of growth, supported by improving rural demand, rising income levels, and steady urban consumption. At the same time, sustained government capital expenditure on infrastructure, including roads, railways, logistics networks, renewable energy, and digital infrastructure, continued to support investment activity and strengthen Indias long-term economic capacity.

Inflationary conditions remained broadly stable during the year, supported by easing food inflation, moderation in core inflation, improved supply-side conditions, and coordinated policy measures. Consumer Price Inflation (CPI) remained within the Reserve Bank of Indias medium-term target framework for most of the period, although food price movements and global commodity price fluctuations continued to remain key areas of monitoring. The moderation in inflation provided greater macroeconomic stability and supported consumer confidence, while enabling monetary policy to maintain an appropriate balance between growth support and price stability.

Indias fiscal position continued to improve through a calibrated approach towards fiscal consolidation while maintaining a strong focus on productive capital expenditure. Government spending remained directed towards infrastructure creation, manufacturing capacity enhancement, logistics efficiency, green energy transition, and digital transformation. These investments have supported economic activity, improved supply-side capacity, and encouraged greater private sector participation in investment-led growth.

The financial sector remained robust and resilient, supported by strong banking sector fundamentals, improved asset quality, healthy capital adequacy levels, and sustained credit expansion. Banks and financial institutions continued to support economic activity through increased lending to retail, infrastructure, manufacturing, MSMEs, and services sectors. The continued expansion of digital financial services, financial inclusion initiatives, and technology-enabled banking solutions further strengthened economic formalisation and financial accessibility.

The external sector demonstrated resilience amid global uncertainties. Services exports continued to be a significant strength, supported by Indias capabilities in information technology, business services, digital solutions, and Global Capability Centres (GCCs). Strong remittance inflows, stable foreign exchange reserves, and diversified export opportunities provided stability to Indias external position. However, global commodity price movements, geopolitical developments, and international trade conditions remained important factors influencing the external environment.

Indias growth outlook remains positive, supported by favourable demographics, rising urbanisation, increasing digital adoption, infrastructure development, manufacturing expansion, and continued policy reforms. The Economic Survey 2025-26 projects Indias real GDP growth in the range of 6.8%-7.2% for FY 2026-27, with medium-term growth potential estimated at approximately 7%, supported by productivity improvements, investment growth, and structural transformation.

Looking towards 2027 and beyond, Indias economic trajectory is

expected to remain supported by continued investment in infrastructure, manufacturing competitiveness, renewable energy, semiconductor development, artificial intelligence, innovation, and export-oriented growth initiatives.

Key risks to the outlook include geopolitical uncertainties, global trade fragmentation, commodity price volatility, climate-related disruptions, and changes in global financial conditions. Nevertheless, Indias strong domestic demand base, resilient financial system, improving macroeconomic stability, and continued structural reforms provide a strong foundation for sustainable and inclusive economic growth.

The Company continues to closely monitor macroeconomic developments, including inflation trends, interest rate movements, investment cycles, consumer demand patterns, and global economic conditions. The Company remains focused on strengthening operational resilience, maintaining prudent financial discipline, and pursuing sustainable growth opportunities aligned with Indias evolving economic landscape.

Source: https://dea.gov.in/files/monthly economic report documents/ Monthlv%20Economic%20Review%20June%202026.pdf

Source: https://www.indiabudget.gov.in/economicsurvey/doc/eschapter/ echap05.pdf

2. Industry overview:

The Plastic Packaging Industry

The global plastic packaging market size was valued at USD 416.5 billion in 2025 and is projected to grow from USD 432.3 billion in 2026 to USD 536.9 billion by 2033, at a CAGR of 3.1% from 2026 to 2033. The Asia Pacific market held the largest share of 44.2% of the global market in 2025. The expanding size of key application industries, including personal and household care, pharmaceuticals, food & beverages, and the growing penetration of e-retail across the globe, are primarily fueling the growth of plastic packaging.

Asia Pacific plastic packaging market led the global industry and accounted for a revenue share of 44.2% of the global revenue in 2025 and is projected to expand further at the fastest CAGR from 2026 to 2033. The demand for plastic packaging is growing fastest in the world because of rapid economic development, a rising middle class, and widespread adoption of modern retail formats. As more people move into cities and incomes rise, theres a marked increase in consumption of processed and convenience foods, bottled beverages, and personal care products, all of which depend on plastic packaging for hygiene, preservation, and branding. The explosive growth of online shopping platforms across countries such as China, India, Indonesia, and Vietnam has also created enormous volumes of demand for lightweight, flexible plastic packaging that ensures safe delivery in complex logistics networks.

Domestically, the Indian plastic packaging industry mirrors this global momentum while benefiting from its unique economic and demographic strengths. Indias market is experiencing robust growth owing to rising consumption of packaged goods, an expanding middle class, and policy support through initiatives such as Make in India and the PLI scheme. Flexible plastic packaging, in particular, has gained substantial ground, with applications across fast-moving consumer goods (FMCG), agriculture, pharmaceuticals, and retail.

Indias packaging industry has tremendous scope to grow, and the sector is likely to touch Rs. 8.50 lakh crore (US $92 billion) by the end of FY 30, as per a recent report by Avendus Capital. The sector has the potential to grow at a compound annual growth rate (CAGR) of about 9% during the next five years, outperforming the overall GDP growth rate. The industry is also closely correlated to consumption patterns and has seen the benefit of increasing consumption in the key end-use industries of food and beverages, pharmaceuticals, personal care, agriculture, consumer durables, and e-commerce, among others. The increasing presence of organised retail and quick commerce is also boosting the demand for packaging materials.

The plastic packaging industry is undergoing significant transformation with increased focus on sustainability, circular economy principles, and responsible resource management. Companies across the value chain are adopting recyclable materials, lightweight packaging designs, recycled content, and improved manufacturing processes to reduce environmental impact.

India is currently among the fastest-growing packaging markets globally, with significant growth potential due to relatively low per capita packaging consumption compared to developed economies. The sector is undergoing structural transformation, with packaging increasingly playing a role beyond product protection to include branding, customer experience, and supply chain efficiency. Among segments, rigid plastic packaging is expected to be the fastest growing, while flexible packaging continues to dominate market share due to strong demand from the FMCG and food sectors. Sustainability is also emerging as a key growth driver, with increasing adoption of recyclable and eco-friendly materials supported by regulatory measures such as Extended Producer Responsibility (EPR) norms. Strong participation from private equity and strategic investors highlights the sectors attractiveness, positioning it for continued expansion and innovation.

Source:https://www.ibef.org/news/india-s-packaging-industry- proiected-to-reach-us-92-billion-bv-fv30avendus-report Source: https://www.grandviewresearch.com/industry- analysis/plastic-packaging-market

FIBC Market: Global Industry

The Flexible Intermediate Bulk Container (FIBC) market continues to expand steadily, supported by increasing industrial production, global trade, and rising demand for efficient bulk packaging solutions across the chemicals, food, agriculture, pharmaceuticals,

construction and mining sectors. According to Future Market Insights (FMI), the Global FIBC market was valued at USD 6.6 billion in 2025 and is estimated to reach USD 6.9 billion in 2026. The market is projected to grow to approximately USD 10.4 billion by 2036, registering a CAGR of 4.2% during the forecast period.

The market is segmented based on bag type, material, capacity, end-use industry, design type, and sales model, with each segment reflecting specific customer requirements. Type A FIBCs are expected to account for 44.0% of global demand in 2026, driven by the transportation of non-static dry bulk materials. Polypropylene (PP) is projected to remain the preferred raw material with a 78.0% market share due to its superior strength, durability, cost efficiency, and recyclability. Bags with capacities ranging from 500 kg to 1,000 kg are expected to account for 39.0% of market demand, while the chemical industry is projected to remain the largest end-use segment, contributing approximately 30.0% of total demand. Direct sales by manufacturers are estimated to account for 49.0% of the market, reflecting the preference of large industrial customers for customised specifications and long-term procurement relationships.

Regionally, Europe remains the leading supplier with approximately 29% of global market share, followed by Asia, including China, with 25%. The Asia-Pacific region continues to dominate global consumption owing to rapid industrialisation and manufacturing growth, while North America and Europe remain key demand centres for high-performance and specialized FIBCs. The United States accounts for nearly 38% of the conductive FIBC market, followed by Europe at approximately 30%, where compliance with CE, FDA, and other international quality standards continues to be a key market requirement. China also remains a significant manufacturing hub, with its domestic FIBC market exceeding CNY 38 billion in 2025 and annual growth exceeding 6.5%, supported by established production clusters in Shandong, Jiangsu, and Zhejiang provinces.

The industry continues to witness increasing adoption of reusable polypropylene FIBCs, lightweight packaging solutions, and sustainable manufacturing practices in line with evolving environmental regulations and circular economy initiatives. The growing emphasis on product quality, traceability, and customised industrial packaging is expected to support long-term demand across global markets.

India remains well-positioned to capitalise on these opportunities, supported by its competitive manufacturing capabilities and expanding packaging industry. According to the India Brand Equity Foundation (IBEF), Indias packaging industry is projected to reach US $92 billion by FY 2030, driven by strong demand from food processing, pharmaceuticals, agriculture, FMCG, and E-Commerce sectors, creating favourable growth prospects for the domestic FIBC industry.

Overall, the long-term outlook for the global FIBC market remains positive, underpinned by rising industrialisation, growing international trade, infrastructure development, and increasing

preference for efficient, safe and sustainable bulk packaging solutions. Although raw material price volatility, evolving environmental regulations, and geopolitical uncertainties remain key challenges, continued innovation, product differentiation, and expanding industrial applications are expected to support steady market growth over the coming decade.

Source: https://www.futuremarketinsights.com/reports/fibc- market

Source: https://www.ibef.org/news/india-s-packaging-industry- proiected-to-reach-us-92-billion-by-fy30avendus-report

Indian FIBC Market

Indias FIBC market exhibits compelling expansion marked by strong alignment with global trends and robust domestic demand. According to industry estimates, the Indian Flexible Intermediate Bulk Container (FIBC) market is estimated to have reached approximately USD 637 million in 2026 and is projected to grow at a CAGR of around 7.2% through 2030. Key drivers contributing to this growth include increased demand from agriculture, chemicals, and energy industries due to the convenient, cost-effective, and efficient packaging solution provided by FIBC. Industry-specific uses, such as the transportation of sand, fertilizers, grains, and minerals, spur the growth too. Green production and sustainability trends, along with technological advancements, offer lucrative opportunities. Export potential is a major untapped growth avenue. In positioning itself for future growth, India is reinforcing its market presence by leveraging these trends, thereby setting itself up as a significant contributor in the global FIBC market.

India has a strong converter base and a large export role in flexible bulk packaging. India is expected to post 5.8% CAGR through 2036 because export incentives and installed sewing capacity support bag shipments. Suppliers that combine cost control with food- grade and UN-certified production are expected to hold stronger positions here. Gujarat and Tamil Nadu converters can serve chemical and food ingredient exporters with shorter lead times. Export-oriented producers need stable fabric sourcing because overseas buyers audit bag quality and shipment consistency.

Recycled PET projects gives India a route to supply lower-waste FIBC formats for global brands. Among end-use industries, chemicals and fertilizers account for the largest share of consumption, while food and beverage applications show the fastest growth rate. Rising hygienic standards, export-oriented packaging norms, and demand for food-grade bulk transport have encouraged a wider adoption of specialty liners and safety-rated FIBC variants. Indias manufacturers are also introducing advanced formats such as antistatic bags, moisture-barrier liners, and smart containers embedded with tracking features, meeting both domestic requirements and the elevated expectations of global buyers. Technological advancements, including smart packaging solutions with enhanced traceability and improved product performance, are expected to further strengthen the industrys competitiveness.

Indias evolving policy landscape has also contributed to this

expansion. With a push towards circular economy practices, reusable packaging solutions, and infrastructure-led development in smart cities and industrial corridors, the domestic market is increasingly favorable to scalable, sustainable packaging technologies. The FIBC sector thus represents a strong convergence of operational utility, economic growth, and environmental responsiveness. With annual revenues now likely nearing the USD 700 million to 1 billion range, the Indian FIBC market stands as a resilient and forward-looking segment of the global packaging industry, equipped to meet both localized demands and international export challenges.

Looking ahead, the Indian FIBC industry is expected to benefit from continued industrialisation, infrastructure development, expanding exports, and increasing emphasis on sustainable packaging solutions. Government initiatives promoting manufacturing competitiveness, export growth, and circular economy practices are expected to create a favourable operating environment for the industry. While raw material price volatility, evolving environmental regulations, and global trade uncertainties remain key challenges, Indias competitive manufacturing base, improving product capabilities, and strong export orientation position the sector favourably for sustained long-term growth.

Source: https://www.futuremarketinsights.com/reports/fibc- market

Source: https://straitsresearch.com/vertex/insights/fibc- market/india

3. Company Overview:

Our Company is one of Indias leading manufacturers and exporters of Flexible Intermediate Bulk Containers (FIBCs) and a diversified range of industrial packaging solutions. Its product portfolio comprises FIBCs, woven sacks, container liners, woven and narrow fabrics, and PP tapes, catering to the packaging requirements of industries such as chemicals, agrochemicals, food processing, agriculture, mining, lubricants, edible oils, and waste management across domestic and international markets.

Over the years, the Company has established an integrated manufacturing platform comprising five strategically located production facilities, supported by its subsidiaries-Honourable Packaging Private Limited, Shree Tirupati Balajee FIBC Limited, and Jagannath Plastics Private Limited. This integrated structure enables efficient manufacturing, operational flexibility, and the ability to offer customised packaging solutions while maintaining high standards of quality and timely delivery.

Quality and innovation remain key pillars of the Companys competitive advantage. Its manufacturing facilities are equipped with advanced testing infrastructure to ensure compliance with stringent international quality and safety standards. Several facilities are certified under globally recognised management systems, including ISO 9001:2015, ISO 22000:2018 and EN15343. The Company also operates a dedicated in-house research and development centre focused on product innovation, process improvement, and customised packaging solutions.

Sustainability continues to be an integral part of the Companys long-term growth strategy. Through investments in renewable energy, including a 2 MW captive solar power plant at Ujjain, Madhya Pradesh, the Company has strengthened its commitment to energy efficiency and environmentally responsible manufacturing. Supported by its integrated operations, customercentric approach, technological capabilities and focus on sustainability, the Company remains well positioned to address the evolving packaging requirements of global markets and deliver sustainable long-term value to its stakeholders.

4. Strengths and Opportunities:

The Company has established long-term relationships with customers across diverse industries through its ability to deliver a wide range of customised FIBC and industrial packaging solutions. Its diversified product portfolio enables it to serve as a one-stop solution provider, supporting customer retention and providing revenue visibility through repeat orders. The Company also benefits from a strong global presence, exporting to over 38 countries, including key developed markets such as the USA, Germany and the UK, supported by strategically located manufacturing facilities that enable efficient logistics and timely delivery.

Growth opportunities are supported by increasing global demand for lightweight, cost-effective and sustainable packaging solutions, particularly across the chemicals, food, agriculture and industrial sectors. The Companys ongoing focus on product development and process improvement, along with investments in technology and R&D, is expected to support its competitive positioning in the evolving global packaging industry.

Sustainability initiatives, including the use of renewable energy and resource efficiency measures, further strengthen operational efficiency and align the Company with global ESG expectations. Supported by experienced management and an integrated manufacturing base, the Company remains well positioned to pursue growth opportunities in domestic and international markets.

Backed by an experienced management team, an integrated manufacturing base, and a strong focus on innovation and sustainability, the Company remains committed to expanding its domestic and international presence while pursuing sustainable growth opportunities in the evolving global packaging industry.

5. Weakness and Threats:

The Company conducts its operations in a cyclical industry exposed to fluctuations in demand and pricing in domestic and international markets. A significant dependence on exports exposes it to foreign exchange volatility, which may impact profitability despite hedging mechanisms.

The Companys operations are also subject to fluctuations in the prices and availability of key raw materials, particularly polypropylene (PP) and high-density polyethylene (HDPE). Any sustained increase in raw material costs or disruption in the supply chain, coupled with limitations in passing on such cost increases to customers, may have an adverse impact on operating margins. Further, the labour-intensive nature of certain manufacturing processes exposes the Company to risks relating to workforce availability, employee retention, productivity, wage inflation and skill development.

The business remains exposed to external risks such as changing global trade policies, geopolitical tensions, and macroeconomic uncertainty in key export markets. In addition, technological advancements in packaging materials may require continuous adaptation to remain competitive. The Company continues to monitor these risks proactively and remains committed to strengthening its operational resilience and implementing appropriate mitigation measures as part of its overall risk management framework.

6. Segment-wise or product-wise performance:

The Company functions as an integrated industrial packaging solutions provider with a diversified product portfolio catering to a wide range of industries across domestic and international markets. Its business is organised across multiple product categories, each addressing specific customer requirements and collectively contributing to the Companys overall revenue and growth.

The Flexible Intermediate Bulk Container (FIBC) segment remains the core business contributor. This segment includes a comprehensive range of products such as Type C (conductive), Type D (static dissipative), UN-certified bags for hazardous materials, food-grade FIBCs, sift-proof variants, and form-stable and selfstanding bags. In addition, the portfolio includes value-added solutions such as flame-retardant, thermally insulated, drumshaped, and anti-rodent bags. These products cater to industries including chemicals, fertilizers, agriculture, construction, and food processing, where safe, efficient, and customised bulk handling solutions are critical.

The Container Liner segment serves export-oriented and bulk logistics applications, particularly in mining and industrial raw materials, enabling contamination-free and efficient transportation of bulk commodities.

The Recycled Polypropylene (RPP) segment supports the Companys sustainability initiatives and caters to demand for cost- effective and environmentally responsible packaging solutions, aligned with increasing focus on circular economy practices. By incorporating recycled polypropylene into its manufacturing processes, the Company seeks to reduce dependence on virgin polymer, optimise the utilisation of recyclable materials and minimise waste generation. This initiative supports the growing demand for environmentally responsible packaging solutions while aligning with evolving customer preferences and sustainability expectations across global markets.

Also with addition to, Specialized PP Woven Bags and BOPP Printed

Small Bags segment serves high-volume applications in agriculture, processed food, and animal feed industries. These products offer strength, durability, and customization capabilities, with BOPP printing enabling enhanced branding and product differentiation.

The woven sacks, woven fabrics, narrow fabrics, and tapes segment supports both internal consumption and external sales, providing operational flexibility and strengthening the Companys integrated manufacturing capabilities across the packaging value chain.

These product segments continued to account for the largest share of the Companys consolidated revenue during the financial years 2025-26 and 2024-25.

( in lakhs, except for percentages)

	Fiscal 2026		Fiscal 2025
Products	Amount	% of Revenue from Operations	Amount	% of Revenue from Operations
FIBC	32,717.05	57.03%	31,442.20	53.85%
Woven Sacks	1,369.90	2.39%	3,533.87	6.05%
Woven Fabrics	6,756.50	11.78%	6,085.59	10.42%
& Narrow Fabric
Tape	1,178.62	2.05%	971.38	1.66%
Others*	15,351.08	26.76%	16,351.29	28.01%
Total	57,373.15	100.00%	58,384.32	100.00%

*Other products include liners, container liners, threads, multifilament yarn, filler cord, and treated polymers, etc depending on end-use requirements. These offerings further strengthen the Companys integrated product portfolio and operational flexibility.

The consistent contribution from across product segments reflects the Companys diversified revenue base and reduced dependence on any single category. Growth across these segments remains driven by customer acquisition and retention, with continued focus on innovation, customization and value-added solutions to strengthen competitiveness and deepen customer engagement.

7. Outlook:

The Company envisages demand for Flexible Intermediate Bulk Containers (FIBCs) to remain steady, supported by their increasing preference as a solution for bulk packaging and material handling. Growth is being driven by industries such as chemicals, fertilizers, food products, pharmaceuticals, agriculture and construction, where efficient and safe handling of bulk materials continues to be a key requirement.

We continue to see demand from ongoing industrial activity and export-oriented packaging requirements across key markets. Accordingly, we are focused on expanding product applications, improving operational efficiency and aligning our offerings with evolving customer requirements across sectors.

Our growth is closely linked to our ability to retain existing customers and expand our customer base in both domestic and international markets. Repeat orders in core product categories, particularly FIBCs and related packaging solutions, continue to provide visibility and stability to our business.

In the domestic market, the increasing adoption of FIBCs in sectors like agriculture, minerals, petrochemicals, and other industrial segments is expected to significantly boost growth. On the global front, we expect continued demand from domestic markets as well as export regions including the Americas, Europe and Africa, where the use of bulk packaging solutions remains well established.

8. Risks and concerns:

In an increasingly dynamic business environment, the Company recognizes that effective risk management is fundamental to sustaining long-term growth and protecting stakeholder value. The Company has established a comprehensive risk management framework focused on the timely identification, assessment, monitoring and mitigation of risks that may influence its business operations and strategic objectives. The framework encompasses a wide range of risks, including economic and market uncertainties, regulatory and legal developments, environmental considerations, operational challenges, and foreign exchange fluctuations.

The Companys risk management approach is embedded across its operations and is driven by a culture of awareness, accountability, and continuous improvement. The executive management team plays a pivotal role in evaluating key risk areas and ensuring that appropriate mitigation measures are implemented. The Company encourages active involvement across functions, enabling employees to remain vigilant towards potential risks and contribute towards strengthening operational preparedness.

The Board of Directors provides oversight of the Companys risk management practices through periodic reviews of significant risks, mitigation plans, and the effectiveness of implemented measures. Through continuous evaluation and enhancement of its risk management framework, the Company remains focused on building resilience, maintaining business continuity, and responding effectively to emerging challenges while pursuing sustainable growth opportunities.

Below is a table summarizing key risks, their potential impacts, and appropriate mitigation strategies adopted by the Company:

Key Risk		Potential Impact on the Company	Mitigation Strategies Adopted by the Company
Raw Material Price Volatility		Fluctuations in the prices of polypropylene and other petrochemical-based raw materials may increase manufacturing costs and exert pressure on operating margins.	- Establishing long-term procurement arrangements with key suppliers wherever commercially feasible. - Incorporating appropriate price variation or escalation mechanisms in customer contracts, where applicable.
Foreign Exchange Fluctuations		Movements in foreign currency exchange rates may affect export realisations, import costs and overall competitiveness in international markets.	- Managing currency exposure through appropriate hedging instruments, including forward contracts, in accordance with the Companys risk management policies. - Maintaining a natural hedge by balancing foreign currency inflows and outflows.
Regulatory and Compliance Risks		Evolving regulatory requirements relating to environmental protection, product safety, and packaging standards may increase compliance obligations and expose the Company to regulatory action or limitations on market access in the event of non-compliance.	- Conducting periodic internal and external compliance audits. - Monitoring evolving regulatory requirements across operating jurisdictions.
Supply Chain Disruptions		Disruptions arising from supplier constraints, transportation bottlenecks, geopolitical events, or other external factors may affect production continuity and the Companys ability to meet customer delivery commitments.	- Building a diversified and resilient supplier network. - Strengthening logistics planning and business continuity measures to improve supply chain resilience.
Customer Concentration Risk		Dependence on a limited number of key clients could impact revenue in case of order reduction or contract termination.	- E x p a n d i n g t h e c u st o m e r p o r t fo l i o a c ro s s industries and geographies. - Fostering long-term customer relationships through continuous engagement and service excellence.
Technological Obsolescence		Delays in adopting new technologies, automation, or process innovations may affect operational efficiency and competitive positioning.	- Investing in updated technology and manufacturing equipment and technology upgrades. - Supporting research and development initiatives focused on product and process innovation.
Geopolitical and Trade Policy Risks		Disruptions in geopolitical conditions, trade policies or other cross-border regulatory measures may influence market access, export competitiveness and demand patterns. Such developments could affect revenue visibility, procurement costs, and the overall efficiency of international operations.	- Diversifying exports across multiple geographies to reduce market concentration. - Maintaining flexibility in sourcing, logistics and market strategies to respond to changing trade conditions.
Environmental & Sustainability Pressures		Increasing customer preference for environmentally responsible products and evolving sustainability regulations may influence market demand and business practices.	- Continuing to enhance the portfolio of recyclable and sustainable packaging solutions in line with evolving market and customer requirements. - Obtaining and maintaining relevant sustainability certifications, including the Global Recycled Standard (GRS), where commercially and operationally suitable.
Labor Availability and Skill Shortages	Limited availability of skilled personnel may affect operational efficiency, product quality and manufacturing productivity.		- Conducting regular training and skill development programmes. - Implementing employee engagement, retention and welfare initiatives.
Quality and Safety Issues	Any compromise in product quality or safety standards may result in customer claims, product rejection, reputational impact or regulatory consequences.		- Maintaining robust quality assurance and quality control systems across manufacturing processes. - Reinforcing product safety, process discipline and employee awareness through regular training and compliance programmes.

9. Internal Control System and their adequacy:

The Company places strong emphasis on maintaining a sound internal control environment to support effective operations, reliable financial reporting, regulatory compliance and prudent risk management. The internal control framework is designed considering the nature and complexity of the Companys business and is aligned with its operational requirements and governance objectives.

A structured review mechanism is in place to identify potential areas of risk and strengthen processes through timely corrective measures. The internal audit function provides an independent assessment of the adequacy of existing controls and evaluates the effectiveness of various operational and financial processes. The outcomes of internal audits, along with recommended improvements, are reviewed by the Management and presented before the Audit Committee for their consideration and necessary action.

The Company continues to promote ethical conduct and accountability through its Code of Conduct and Whistle-Blower Policy, which provide a framework for responsible decision-making and confidential reporting of concerns. These practices contribute towards maintaining transparency and integrity across the organization.

The Audit Committee, along with the Management, Internal Auditors, and Statutory Auditors, provides oversight to the internal control framework through regular interactions and reviews. The Company believes that its established systems and processes provide reasonable assurance regarding safeguarding of assets, compliance with applicable requirements, mitigation of risks and protection of stakeholder interests.

10. Financial performance

The Company maintained a stable financial performance for the year ended 31 st March 2026. The total income stood at 36,385.17 lakh, remaining broadly in line with the previous years figure of 36,370.65 lakh. Revenue from operations continued to demonstrate consistency at 35,865.38 lakh in FY 2025-26, reflecting sustained business momentum.

Other income contributed 519.79 lakh during the year, and the Company efficiently managed its resources, keeping total expenses

well-contained at 35,180.42 lakh, showcasing operational discipline and cost optimization.

The Company achieved a Profit before Tax (PBT) of 1,204.75 lakh, supported by steady revenues and prudent financial management. After providing for current and deferred taxes, the Profit after Tax (PAT) stood at 884.23 lakh, supported by the Companys ongoing focus on core operations and financial prudence.

In addition, the Company reported total comprehensive income of 909.25 lakh, demonstrating continued value creation for stakeholders. The earnings per share (EPS) for the year was 1.08, reflecting the Companys strong fundamentals and consistent operational performance.

Particulars	Standalone
	Year ended on
	31.03.2026	31.03.2025
Revenue from Operations (Net)	35,865.38	36,012.86
Other Income	519.79	357.79
Total Income	36,385.17	36,370.65
Total Expenses	35,180.42	34,166.52
Profit Before tax	1,204.75	2,204.12
Less:- Current tax	316.84	600.37
Deferred Tax	3.68	120.92
Profit After Tax (PAT)	884.23	1,482.83
Other Comprehensive Income	25.03	12.68
Total comprehensive income for the year	909.25	1,495.51
Earnings per share (Basic & Diluted)	1.08	1.98

11. Material developments in Human Resources / Industrial Relations front, including number of people employed:

At our Company, human capital remains a key enabler of the Companys long-term growth and competitiveness. The commitment, capability and collective efforts of our employees continue to support operational excellence, strengthen customer relationships and drive sustainable business performance. Accordingly, the Companys human resource philosophy is centered on attracting, developing and retaining capable talent while fostering a workplace built on integrity, collaboration and continuous learning.

Recruitment focuses on identifying individuals with the technical expertise, professional competence and values that align with the Companys culture and long-term strategic objectives. Alongside talent acquisition, equal emphasis is placed on building internal capabilities through structured learning and development initiatives, technical training programmes, workshops and mentoring that enable employees to enhance their skills and prepare for greater responsibilities.

Further, we remain committed in providing an environment where employees are encouraged to grow, contribute, and realise their potential. Career development opportunities, performance recognition and an open & collaborative work culture continue to support employee engagement, capability building and long-term retention.

Industrial relations remained cordial, constructive and harmonious throughout the year under review. As on March 31, 2026, the Company had 671 employees on its payroll. The Company remains committed to strengthening employee engagement and cultivating a workplace that promotes inclusivity, productivity and sustained organizational excellence.

12. Key Financial Ratios

Sr. No. Ratios	FY 2025-26	FY 2024-25	Variance %	Reason for variance if more than 25%
1 Debtors Turnover	8.02	7.05	13.77%	-
2 Inventory Turnover	1.37	1.55	-11.13%	-
3 Interest Coverage Ratio	1.57	2.57	-38.85%	Decreased due to decrease in Earning Before Interest and Tax.
4 Current Ratio	1.98	2.18	-9.17%	-
5 Debt Equity Ratio	0.46	0.44	3.56%	-
6 Operating profit margin %	5.25%	8.39%	-37.41%	Decreased due to decrease in Operating Profit.
7 Net profit margin Ratio %	2.47%	4.12%	-40.16%	Decreased due to decrease in Net Profit After Tax.
8 EBITDA %	6.18%	9.57%	-35.39%	Decreased due to decrease in Profit before Tax
9 Return on net worth (in %)	3.43%	5.96%	-42.45%	Decreased due to decrease in Net Profit After Tax.

13. Cautionary Statement:

This report contains forward-looking statements that may be identified by their use of words such as plans, expects, will, anticipates, intends, projects, estimates or other expressions of similar nature. All statements that address expectations or projections about the future, including but not limited to the Companys strategies, growth outlook, market position, expenditures, and financial performance, are forward-looking statements. These are based on certain assumptions and expectations of future events, and the Company does not guarantee that these assumptions will prove to be correct or that the expectations will be realized. Actual results may differ materially due to various known and unknown risks, uncertainties, and other factors, many of which are beyond the Companys control.

Place: Pithampur (Dhar)
Date: 12 th August, 2026

Binod Kumar Agarwal
Chairman & Managing Director
DIN:00322536