Shree Tirupati Balajee FIBC Ltd Management Discussions

Global Economic Overview

“Wars are not paidfor in war time, the bill comes later ” - Benjamin Franklin If2025 had one consistent backdrop, it was elevated uncertainty: renewed trade tensions, geopolitical frictions, and US policy shifts in Trump Part Deux. The global economy confronting a renewed geopolitical shock that has quickly altered the macro financial landscape. What began as geopolitical signaling in West Asia escalated within weeks into a significant energy and market disturbance. Crude oil prices crossed US$100/bbl for the first time since 2022 and have risen more than 40% since the onset of the Iran-Israel-US conflict. Disruptions around the Strait of Hormuz·through which roughly one-fourth of global oil and around one-fifth of LNG flows transit·have heightened concerns of a sustained supply shock. Financial markets have responded in a familiar risk-off pattern: equities have corrected, commodities have strengthened, and currencies across emerging markets have come under pressure. The impact remains uneven across economies depending on their exposure to energy disruptions and their integration into technology-driven global value chains. Global growth is projected to be 3.0 percent in 2026 and 3.4 percent in 2027, down from the average of 3.5 percent observed in 2024-25.

The global financial environment remains relatively accommodative but continues to face risks from geopolitical tensions, inflation, higher interest rates and elevated public debt. Financial markets have shown resilience, supported by strong corporate earnings and a relatively resilient global economy; however, higher long-term yields and inflation uncertainty could increase fiscal and refinancing pressures. Emerging markets remain exposed to exchange-rate volatility, capital-flow reversals and higher funding costs, particularly where dependence on imported energy is high. Growth prospects vary significantly across regions. Advanced economies are projected to grow by 1.7% in 2026 and 1.8% in 2027, while emerging market and developing economies are expected to grow by 3.8% in 2026, accelerating to 4.5% in 2027. India remains among the fastest-growing major economies, with growth projected at 6.4% in 2026, supported by resilient private consumption and services activity. China is projected to grow by 4.6%, while the United States is expected to grow by 2.3% in 2026.

Financial markets over FY26 reflected this evolving interplay between resilience and disruption. For much of the year, global equities remained supported by steady earnings, disinflation and continued strength in technology-led investment. Developed markets anchored performance, with the MSCI World Index returning 17.4%, while emerging markets outperformed for a large part of the year, delivering 26.9%, led by North Asia. This constructive backdrop reversed sharply in March. The escalation in West Asia, a spike in crude prices and renewed inflation concerns triggered a broad risk-off correction, with emerging markets falling 13.3% in the month·nearly double the decline in developed markets. Commodity markets turned correspondingly volatile, with crude prices rising above US$100 per barrel and ending the year 58% higher. The INR depreciated sharply by about 11% over FY26, reflecting both higher oil prices and sustained capital outflows.

However, the global economy as a whole has, so far, weathered the shock from the war better than feared. Movements in and repercussions from the main channels of transmission·commodity prices, inflation expectations, and financial conditions·have been relatively limited. However, transmission is still in the early stages·commercial and strategic destocking have provided temporary relief from reduced energy flows, whereas forward-looking indicators such as supply chain pressure and manufacturing purchasing managers’ indices point to softer momentum ahead.

Source: - https://www.imf.org/

Indian Economic Overview

For India, the year was defined by resilience under pressure. India’s GDP growth for FY26 is estimated at 7.4 per cent driven by the double engine of consumption and investment. It reaffirms India’s status as the fastest-growing major economy for the fourth consecutive year. The domestic demand continues to underpin economic growth in FY26. According to the First Advanced Estimate, the share of final private consumption expenditure (PFCE) in GDP rose to 61.5 per cent in FY26. This strength in consumption reflects a supportive macroeconomic environment, characterised by low inflation, stable employment conditions, and rising real purchasing power. Moreover, steady rural consumption, bolstered by strong agricultural performance, and the gradual improvement in urban consumption, aided by the rationalisation of direct and indirect taxes, reaffirm that the momentum in consumption demand is broad-based.

Along with consumption, investment has continued to anchor growth in FY26, with the share of gross fixed capital formation (GFCF) estimated at 30.0 per cent. Investment activity strengthened in the first half of the year, with, GFCF expanding by 7.6 per cent, exceeding the pace recorded in the corresponding period last year and remaining above the pre-pandemic average of 7.1 per cent.

Manufacturing emerged as the key growth driver, with Gross Value Added (GVA) growth accelerating to 7.72% in Quarter 1 and 9.13% in Quarter 2 of year 2026. This performance has been supported by policy initiatives such as the PLI schemes, which have attracted over Rs.2 lakh crore and generated significant production and employment opportunities. Overall, the sector reflects a sustained recovery, driven by improved capacity utilisation, policy support and strengthening domestic demand.

However, India faced sharply higher tariffs on exports to the United States, and a trade agreement remained elusive through the year. Disruptions around the Strait of Hormuz·through which roughly 85% of crude oil requirements are imported widen the import bill by about approx US$18 bn annually, and push the current account deficit higher by 0.4-0.5% of GDP, complicating the growth-inflation balance. Equities faced sustained pressure through FY26, with intermittent recoveries proving short-lived amid trade tensions, geopolitical risks and elevated crude prices. Record foreign portfolio outflows added to the weakness, as capital rotated towards relatively cheaper and technology- led global markets.

Nevertheless, Indias strong domestic demand, improving private investment intentions, healthy household and corporate balance sheets, moderated inflation and continued public investment provide significant resilience against external shocks. As India enters FY 2026-27, the global economic environment continues to face uncertainty arising from ongoing geopolitical tensions in West Asia, evolving trade restrictions and volatility in global commodity and energy markets. These developments have affected global supply chains, moderated investment sentiment and created uneven growth conditions across advanced and emerging economies. Despite these external challenges, India’s macroeconomic outlook remains relatively stable, supported by resilient domestic demand, policy continuity and improving economic fundamentals.

Source: - https://www.pib.gov.in/

Packaging and FIBC Industrial Trend

The global packaging industry continues to play a critical role in supporting manufacturing, trade, logistics and consumption across diverse sectors of the economy. Packaging demand is closely linked with industrial production, international trade, infrastructure development, agricultural output, food processing, chemicals, pharmaceuticals and construction activity. During FY 2025-26, the packaging sector continued to evolve in response to changing customer requirements, sustainability considerations, supply-chain dynamics and the increasing need for cost-efficient and reliable logistics solutions.

The global FIBC industry is expected to maintain a steady growth trajectory over the medium to long term, supported by the increasing requirement for efficient bulk packaging solutions across industrial and commercial applications. The global Flexible Intermediate Bulk Container market is estimated at approximately USD 9.05 billion in 2026, compared with approximately USD 8.63 billion in 2025, and is projected to reach approximately USD 11.44 billion by 2031, representing a CAGR of approximately 4.82% during 2026-2031.

The increasing focus on supply-chain efficiency and logistics optimisation is supporting the adoption of FIBCs across industries. Compared with multiple smaller packaging units, FIBCs can facilitate the movement of larger quantities of materials in a single container, potentially reducing handling requirements, packaging consumption and transportation complexity. The chemical and fertilizer sectors remain among the important end-use industries for FIBC products. FIBCs are widely used for handling and transporting granular and powdered materials due to their high load-bearing capacity and flexibility. Food-grade FIBCs are increasingly used for products such as grains, starches, sugar, flour, animal feed and other food ingredients. Pharmaceutical and specialty applications require higher standards of hygiene, contamination control, traceability and manufacturing process discipline.

Customers, regulators and brand owners are increasingly focused on reducing packaging waste, improving recyclability and increasing the efficiency of packaging materials. Within the FIBC industry, this is reflected in growing interest in reusable FIBCs, recycled-content materials and closed-loop recycling models. Manufacturers are focusing on improving productivity and consistency through investments in High-speed circular looms, Automated cutting and stitching, Automated inspection, Fabric and seam testing, Digital quality-control systems; and Production monitoring and traceability.

Automation can help improve production efficiency, reduce variability and enhance quality consistency. As international customers increasingly require uniform product specifications across large-volume orders, investment in modern manufacturing infrastructure is expected to remain an important differentiating factor. For manufacturers serving international markets, maintaining robust quality- management systems and ensuring compliance with customer-specific and regulatory requirements are increasingly important for customer retention and market expansion.

India continues to represent an attractive market for FIBC manufacturing and exports. The countrys growing chemical, fertilizer, pharmaceutical, agricultural, food-processing, mining and construction sectors provide a diversified domestic demand base. At the same time, Indias established manufacturing capabilities and presence in global export markets provide opportunities for Indian manufacturers to serve international customers across multiple geographies. Available market research indicates a favourable long-term growth outlook for Indias broader intermediate bulk container market. India is expected to be one of the faster-growing country markets in the FIBC/bulk-bag segment, with a projected CAGR of approximately 5.8% through 2036.

Source: https://www.mordorintelligence.com/industry-reports/fibc-market

Company Overview

Shree Tirupati Balajee FIBC Limited (“STB” or “the Company”) is an established manufacturer and exporter of Flexible Intermediate Bulk Containers (FIBCs) and polypropylene (PP)/HDPE woven packaging solutions, with its manufacturing operations based in Pithampur, Madhya Pradesh. With over Sicteen years of experience in the FIBC and woven packaging industry, the Company has developed a diversified product portfolio comprising FIBCs, jumbo bags, woven sacks, laminated and unlaminated woven fabrics, BOPP-coated bags, builder bags, liners, tarpaulins, narrow woven belts and multifilament yarns, catering to the varied packaging requirements of industries including agriculture, chemicals, food, pharmaceuticals, construction and other industrial sectors.

The Company operates an integrated manufacturing facility located in the Special Economic Zone (SEZ) at Pithampur, Dhar, Madhya Pradesh, with an installed capacity of approximately 8,000 MT per annum for FIBC production and approximately 4,000 MT per annum for fabric production. The Companys integrated manufacturing capabilities enable it to maintain greater control over the production cycle, product quality and delivery timelines, while also facilitating the development of customized packaging solutions aligned with specific customer requirements. The Companys focus on product innovation, process efficiency, quality assurance and responsive customer service continues to strengthen its ability to serve diverse domestic and international markets.

Quality and compliance remain central to the Companys operations and market positioning. The Company has established a comprehensive quality and management framework supported by certifications and accreditations including ISO 9001:2015, ISO 14001:2015, ISO 22000:2018, ISO 45001:2018, SEDEX SMETA Four-Pillar, BRCGS and HALAL. These certifications reflect the Companys commitment to maintaining internationally recognized standards relating to quality management, environmental responsibility, food safety, occupational health and safety, ethical business practices and product compliance. The Companys integrated clean-room FIBC manufacturing capabilities further strengthen its ability to cater to quality-sensitive and regulated applications, particularly in international markets.

Strengths and Opportunities:

Shree Tirupati Balajee FIBC Limited has built a geographically diversified customer base with a strong presence across key export markets, including the United States of America, the United Kingdom, Australia, Germany, Italy, Spain, New Zealand and other regions across Europe, North America, Australia and Africa. Exports continue to constitute a significant proportion of the Companys business, reflecting its established international customer relationships and ability to meet global quality and packaging requirements. The Companys sustained focus on quality, customized product development, timely delivery and long-term customer relationships has enabled it to strengthen its position as a reliable packaging partner for customers across multiple end-use industries.

Further, the global FIBC and flexible packaging industry continues to offer significant growth opportunities, driven by increasing demand for efficient, lightweight, durable and cost-effective bulk packaging solutions across sectors such as chemicals, agriculture, food, pharmaceuticals, construction and other industrial applications. Further opportunities exist in the growing demand for food-grade, pharmaceutical and specialty packaging solutions, where stringent quality and safety requirements favour manufacturers with established certifications and clean-room manufacturing capabilities. The Company can also leverage its existing manufacturing expertise to expand its range of value-added and customized products, address niche applications and improve its product mix. The Company intends to further strengthen its market presence by enhancing operational efficiencies, expanding its product and customer portfolio, deepening relationships in existing export markets and exploring opportunities in new geographies and application segments.

Weakness and Threats:

The Company is engaged in the business of manufacturing and export of containers and packaging materials, which is associated with normal business risk as well as the imbalance of demand-supply of products in the domestic as well as international market. The Companys significant dependence on export markets, with exports contributing a substantial portion of its total sales, exposes it to fluctuations in global economic conditions, geopolitical developments, changes in international trade policies, tariff barriers, currency movements and demand conditions in key overseas markets. The Companys export-oriented operations also expose it to foreign exchange fluctuations, freight and logistics costs, disruptions in global supply chains and changes in shipping routes and international transportation costs. Geopolitical tensions, regional conflicts, trade restrictions and disruptions in global logistics may lead to higher freight costs, extended delivery timelines and uncertainty in international trade.

However, there are no risks which in the opinion of the Board are of the nature that can threaten the existence of the Company. The risks inter-se that are generally dealt in regular course of business and have to be taken care of are economic risk, technology risk, fluctuations in foreign exchange rates and raw material prices which the Company regularly monitors to evaluate and mitigate these potential risks. Also, this industry being highly labour intensive the retention of workers has been high priority for the Company. Attrition of workers may affect the production and also involves cost and time in inducting and training of new appointees. Several other global as well as Indian economic and political factors that are beyond our control may affect the business of the Company.

Segment Wise Performance:

The Company is mainly engaged in the business of manufacturing of HDPE/PP Woven Sacks Fabric. All other activities of the Company revolve around the main business and as such there is no separate reportable business segment.

Discussion on financial performance with respect to operational performance

During the financial year 2025-26, the Company has posted total revenue from operations of Rs. 202.88/- Crore as against Rs. 210.92/- Crore as compared in the previous financial year 2024-25. The Net Profit after tax of the Company on Standalone basis for the financial year 2025-26 has been decrease to Rs. 3.11/- Crore as compared to Rs. 14.62/- Crore during the previous financial year 2024-25.

The summarized financial results for the year ended March 31,2026 are as under:-

Particulars	Standalone	Consolidated
	Year ended on	Year ended on
	31.03.2026	31.03.2025	31.03.2026	31.03.2025
Revenue from Operations (Net)	20,288.07	21,091.95	20,288.07	21,091.95
Other Income	129.84	123.54	129.84	123.54
Total Income	20,417.91	21,215.49	20,417.91	21,215.49
Total Expenses	19,971.89	19,343.23	19,979.96	19,345.55
Profit Before tax	446.03	1,872.26	437.96	1,869.94
Less: - Current tax	120.60	343.75	120.60	343.75
Deferred Tax	6.68	35.03	6.68	35.03
(MAT Credit Entitlement)	26.18	56.65	26.18	56.68
Profit After Tax (PAT)	292.56	1,436.84	284.49	1,434.49
Other Comprehensive Income	19.03	25.19	19.03	25.19
Total comprehensive income for the year	311.60	1,462.03	303.53	1,459.68
Earnings per share (Basic & Diluted)	2.89	14.18	2.81	14.16

Internal Control System

The Company’s internal audit system has been reviewed and updated to ensure that assets are safeguarded, established regulations are followed and outstanding issues are promptly remedied. The audit committee regularly looks over the internal auditors’ reports, notes any findings from the audit and takes corrective action, whenever necessary. To ensure the proper implementation of the internal control systems, it maintains constant communication with external as well as internal auditors.

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

At Shree Tirupati Balajee FIBC Limited our employees are the cornerstone of our success, and we’re committed to nurturing their growth and development. Our core values and code of conduct are emphasised throughout the organisation. We prioritise a safety-conscious culture, implementing programs and procedures to safeguard the health and well-being of our employees. Our goal is to create an inclusive workplace that embraces individuals from diverse backgrounds, acknowledging differences in preferences, culture, and gender. We believe that a combination of our reputation in the market, our working environment and competitive compensation programs allow us to attract and retain these talented people. Our management team consists of experienced individuals with diverse skills. We believe that our employees are the key to the success of our business. We focus on hiring and retaining employees. We view this process as a necessary tool to maximize the performance of our employees. As of March 31,2025, we had over 707 employees on our payrolls, each contributing to our shared success.

Risks and concerns

The Company acknowledges that effective risk management is critical to sustaining long-term growth and operational stability. Owing to the nature and scale of its operations, it is exposed to a range of risks, including environmental, operational, regulatory, political, financial, and human capital-related risks. To proactively manage these exposures, the Company has established a structured risk management framework to evaluates mitigation mechanisms, and ensures that risk management processes remain robust and aligned with the Company’s strategic objectives.

KEY RISKS	POTENTIAL IMPACT ON THE COMPANY	MITIGATION STRATEGY ADOPTED BY THE COMPANY
Raw Material Price Volatility	Fluctuations in PP, PE and other petrochemical-based raw material prices may increase production costs and put pressure on margins.	Strategic procurement, supplier diversification, inventory planning and appropriate pricing negotiations with customers.
Foreign Exchange Fluctuations	As a significant portion of revenue is generated from exports, currency fluctuations may impact profitability and competitiveness.	Monitoring currency movements, natural hedging and appropriate hedging mechanisms, wherever considered appropriate.
Regulatory and Compliance Risks	Changes in environmental, safety, packaging and export regulations may increase compliance costs or restrict market access.	Continuous regulatory monitoring, periodic audits and strengthening of internal compliance systems.
Supply Chain Disruptions	Delays in raw material availability or transportation may affect production schedules and timely customer deliveries.	Multiple supplier relationships, prudent inventory management and proactive logistics and contingency planning.
Customer Concentration Risk	Dependence on key customers or specific markets may adversely affect revenue in the event of reduced orders or customer attrition.	Expanding the customer base, entering new markets, strengthening customer relationships and diversifying end-use industries.
Technological Obsolescence	Failure to adopt modern technologies and improve productivity may affect efficiency, quality and competitiveness.	Investment in technology, process improvements, automation and continuous enhancement of manufacturing capabilities.
Geopolitical and Trade Policy Risks	Trade restrictions, tariffs, geopolitical conflicts and changes in international trade policies may impact exports and logistics.	Geographical diversification, continuous monitoring of global developments and flexible sourcing and logistics arrangements.
Environmental & Sustainability Pressures	Increasing regulatory and customer expectations for sustainable packaging may require changes in products and manufacturing processes.	Focus on recyclable and sustainable packaging solutions, resource efficiency, waste reduction and environmentally responsible practices.
Labor Availability and Skill Shortages	Shortage of skilled manpower may affect productivity, quality and operational efficiency.	Employee training, skill development, safety initiatives and employee engagement and retention measures.
Quality and Safety Issues	Failure to meet stringent customer specifications or international quality standards may result in product rejection, claims or reputational damage.	Robust quality control systems, certified raw materials, regular testing and adherence to applicable international standards and certifications.

Details of Significant Changes in Key Financial Ratios

Sr. No. Ratios	FY 2025-26	FY 2024-25	Variance %	Reason for variance if more than 25%
1 Debtors Turnover	4.74	5.29	-10.40%	-
2 Inventory Turnover	1.92	2.40	-20.00%	-
3 Interest Coverage Ratio	1.37	3.46	-60.55%	Decreased due to decrease in Earning Before Interest and Tax.
4 Current Ratio	1.74	1.76	-1.14%	-
5 Debt Equity Ratio	1.08	0.96	12.50%	-
6 Operating profit margin %	5.82%	11.66%	-50.07%	Decreased due to decrease in Operating Profit.
7 Net profit margin Ratio %	1.44%	6.81%	-78.83%	Decreased due to decrease in Net Profit After Tax.
8 EBITDA %	7.35%	12.94%	-43.22%	Decreased due to decrease in Profit before Tax
9 Return on net worth (in %)	3.07%	15.60%	-80.30%	Decreased due to decrease in Net Profit After Tax.

Compliance with Indian Accounting Standards

In the preparation of the financial statements, the Company has followed the Indian Accounting Standards as notified. The significant accounting policies which are consistently applied have been set out in the Notes to the Financial Statements.

Future Outlook:

The outlook for Shree Tirupati Balajee FIBC Limited remains focused on strengthening its position in the global FIBC and flexible woven packaging industry and pursuing sustainable, profitable growth. The Company expects demand for FIBCs and bulk packaging solutions to remain supported by the requirements of industries such as agriculture, chemicals, food, pharmaceuticals, construction and other industrial sectors. The increasing preference for lightweight, reusable, recyclable and cost-effective packaging solutions is expected to provide further opportunities for the Company.

The Company remains committed to maintaining high standards of quality, innovation, sustainability and customer service while strengthening long-term relationships with its customers. By focusing on product diversification, market expansion, operational excellence and prudent risk management, the Company aims to navigate the evolving industry environment and create sustainable long-term value for its stakeholders.

Overall, the Company remains confident that its diversified product portfolio, integrated manufacturing capabilities, strong quality systems, established export network and customer-focused approach will enable it to capitalize on emerging opportunities in the global FIBC and woven packaging industry. While remaining mindful of global economic uncertainties and industry challenges, the Company is well positioned to pursue sustainable growth and enhance stakeholder value over the long term.

Cautionary Statement:

The 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 words of similar meaning. All statements that address expectations or projections about the future, including statements about the Company’s strategies for growth, market position, expenditures and financial results are forward-looking statements. Forward looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realised.

	For and on behalf of the Board
Place: Pithampur (Dhar)	Binod Kumar Agarwal
Date: August 04, 2026	Chairman & Managing Director
	DIN:00322536