Shri Jagdamba Polymers Ltd Management Discussions

The Board of Directors is pleased to share with you the Management Discussion and Analysis Report for the Financial Year ended on March 31, 2026.

1. Company Synopsis

Shri Jagdamba Polymers Limited is a BSE-listed manufacturer and exporter of technical textiles and polymer-based woven products, with a legacy spanning over four decades since its establishment in 1985 and listing in 1986. The Companys operations are centred on polypropylene (PP) and polyethylene/high-density polyethylene (PE/HDPE)-based applications, with particular expertise in woven and non-woven geotextiles. With a strong export-oriented business model, the Company has established a presence across key international markets, including the USA, UK, UAE, Brazil, Canada, Morocco, Slovenia, South Africa and St. Kitts. Its manufacturing capabilities are supported by an ISO 9001:2015 certified quality management system, while its job-work operations enable it to provide customised manufacturing and processing solutions aligned with specific customer requirements. The Company continues to focus on quality, customised product development, technical specifications, timely delivery and continuous product innovation, strengthening its ability to serve diverse applications across infrastructure, agriculture, packaging, construction and industrial segments.

2. Global Economy Overview

The global economy in FY 2025-26 exhibited resilient but uneven growth, navigating persistent geopolitical tensions, evolving trade policies and a wave of technology-driven investment. According to the International Monetary Fund (IMF), global GDP expanded by an estimated 3.3% in 2025, with a similar growth rate of 3.3% projected for 2026, broadly matching the pace recorded in 2024. While this reflects continued resilience in the face of tariff-related disruptions and elevated uncertainty, growth remains below pre-pandemic historical averages, reflecting lingering structural headwinds, high debt levels and subdued productivity in several major economies.

According to the IMF World Economic Outlook Update (January 2026), the global economy maintained steady, broad-based growth through FY 2025-26. A marked divergence, however, persisted between advanced and emerging economies. Advanced Economies (AEs) registered subdued growth of 1.7% in 2025, with a modest recovery to 1.8% projected for 2026, weighed down by structural constraints, tighter-for-longer financial conditions and softer productivity outside technology-intensive sectors. In contrast, Emerging Market and Developing Economies (EMDEs) continued to outpace global averages, expanding by 4.4% in 2025 and a projected 4.2% in 2026, led by resilient domestic demand, technology-linked investment and policy support in major economies such as India and China.

Economy Group	2024	2025 (E)	2026 (P)
World Output	3.3%	3.3%	3.3%
Advanced Economies (AEs)	1.8%	1.7%	1.8%
Emerging Market & Developing Economies (EMDEs)	4.3%	4.4%	4.2%
India (FY basis)	6.5%	7.3%	6.4%

According to the International Monetary Funds July 2026 World Economic Outlook Update, global growth is projected at 3.0% in 2026 and 3.4% in 2027, down from an average of 3.5% recorded over 2024-25. The IMF attributes the near-term softening to the drag from the war in the Middle East on energy-importing and vulnerable economies, which is being partly offset by an accelerated, demand-driven global technology investment cycle linked to artificial intelligence (AI) adoption. The impact is uneven varying by a countrys exposure to the conflict and its position in the technology value chain.

On prices, global headline inflation is projected to rise from 4.1% in 2025 to 4.7% in 2026 a 0.3 percentage-point upward revision from the April 2026 WEO, driven mainly by higher energy and food costs before easing to 3.9% in 2027. Inflation dynamics remain uneven across countries depending on exchange-rate pass-through and domestic price pressures.

Key risks to the global outlook during FY 2025-26 included:

Escalation of geopolitical tensions in the Middle East and its impact on energy prices and shipping routes; Continued trade policy uncertainty and tariff realignments among major economies; Elevated public debt levels across several economies constraining fiscal space; and Volatility linked to rapidly shifting expectations around AI-driven technology investment.

Despite these headwinds, the global outlook for 2026-27 remains cautiously constructive, underpinned by continued technology-led investment, gradually easing financial conditions and the demonstrated adaptability of the private sector.

For companies such as Shri Jagdamba Polymers Limited, operating in the technical textiles industry as manufacturers and exporters, these global dynamics reinforce the continued importance of resilience, operational agility, diversification of markets, and prudent risk management to navigate an uncertain external environment while capitalising on opportunities arising from the sustained outperformance of emerging economies.

3. Indian Economy and Indian Technical Textile Overview and Outlook

Indias economy accelerated in FY 2025-26, with real GDP growth estimated at 7.6% as per the National Statistical Offices Second Advance Estimates, up from 6.5% in FY 2024-25, driven by robust growth in services and a recovery in manufacturing. Nominal GDP for FY 2025-26 is estimated at approximately 345.47 lakh crore. Following a revision of the GDP base year to 2022-23, India has overtaken Japan to become the worlds fourth-largest economy by nominal GDP, behind only the United States, China and Germany, and remains the fastest-growing major economy globally.

Indias technical textiles sector continued to expand its export footprint. As per information provided by the Ministry of Textiles in the Lok Sabha in July 2026, the domestic technical textiles industry recorded exports of 29,217.60 crore in FY 2025-26 (up from 24,732.68 crore in FY 2024-25, a growth of approximately 18.1%), against imports of 25,797.40 crore, resulting in a net trade surplus of 3,420.20 crore for the sector. On the policy front, the Ministry of Textiles budgetary allocation has risen only marginally, from 5,272 crore in FY 2025-26 to 5,279.01 crore in FY 2026-27, while the Production-Linked Incentive (PLI) Scheme for Textiles has been allocated 405 crore for FY 2026-27 to support man-made fibre (MMF) apparel, MMF fabrics and technical textiles manufacturing. Export-linked support continues through the RoDTEP scheme, extended until 30 September 2026, while Indias trade-agreement architecture has widened further with the India-UK CETA now in force, the conclusion of India-EU FTA negotiations, and the signing of a New Zealand FTA collectively improving market access and competitiveness for Indian technical textile exporters, including the Company. It is notable that while the Indian technical textiles sector as a whole grew exports by ~18.1% in FY 2025-26, the Companys own standalone revenue from operations declined by approximately 13.5% over the same period (see Review of Operations). This divergence suggests the decline reflects Company-specific factors rather than a sector-wide contraction, and is analysed further under Key Developments and Review of Operations below.

INDIA TECHNICAL TEXTILES MARKET HIGHLIGHTS

India contributed 9.9% to the global technical textiles market revenue in 2025, reflecting its steadily growing presence on the global stage. Among Asian countries, India remains one of the most promising markets, driven by government initiatives like the National Technical Textiles Mission (NTTM) and increasing private sector investments. While other countries in Asia Pacific continue to show growth, Indias expanding domestic demand, policy support, and innovation ecosystem position it as a key player in shaping the future of technical textiles. Exports of technical textiles rose by approximately 18.1% in FY 2025-26, reaching 29,217.60 crore, up from 24,732.68 crore in FY 2024-25 a five-year CAGR of nearly 12.7% over the FY 2020-21 base of 16,100.50 crore. With imports at 25,797.40 crore, the sector recorded a healthy trade surplus of 3,420.20 crore in FY 2025-26. Indias exports of technical textiles to the UK are projected to rise to USD 1 billion by 2030, up from the current level of USD 240 million, following the India-UK Comprehensive Economic and Trade Agreement (CETA) coming into force on 15 July 2026. The elimination of the erstwhile 12% UK tariff is expected to provide a major boost to Indian manufacturers by improving market access and enhancing competitiveness in high-value technical textile categories such as geotech, medtech, protech and agrotech.

GOVERNMENT INITIATIVES TO BOOST TECHNICAL TEXTILES MARKET

The Government of India continues to support the growth of the technical textiles sector through policy interventions focused on strengthening domestic manufacturing, promoting innovation and research, developing infrastructure, reducing import dependence and enhancing export competitiveness.

Key Government Initiatives Budget Allocation

The Ministry of Textiles has been allocated 5,279.01 crore for FY 2026-27, compared with a revised estimate of 5,766.68 crore for FY 2025-26. The National Technical Textiles Mission (NTTM) has received a dedicated allocation of 256 crore for FY 2026-27.

Production-Linked Incentive (PLI) Scheme

The PLI Scheme for Textiles, launched in 2021 with an outlay of 10,683 crore and extended through FY 2029-30, continues to support domestic manufacturing. The scheme has approved 170 companies and notified 225 products across MMF Apparel, MMF Fabrics and Technical Textiles.

National Technical Textiles Mission (NTTM)

The NTTM continues to promote research and development, innovation, skill development, market development and awareness. Under the GREAT scheme, 31 start-ups have received grant support aggregating 15.40 crore.

PM MITRA Parks

The PM Mega Integrated Textile Regions and Apparel (PM MITRA) Parks initiative aims to establish integrated and plug-and-play textile manufacturing ecosystems. Each park entails an estimated investment of approximately 10,000 crore and is expected to generate employment opportunities for approximately 3 lakh persons.

Export Support and Incentives

Export-linked schemes such as RoDTEP and RoSCTL continue to support Indias textile exporters. Technical textile exports increased by approximately 18.1% year-on-year to 29,217.60 crore in FY 2025-26, resulting in a trade surplus of 3,420.20 crore.

Import Substitution and Technology Localisation

The Government is considering measures to reduce dependence on imported technical textile machinery. Proposals such as a 7% interest subsidy for domestic machinery manufacturing are aimed at strengthening local manufacturing capabilities.

India-UK CETA

The India-UK Comprehensive Economic and Trade Agreement (CETA), which came into force on 15 July 2026, provides 100% duty-free access across 1,143 tariff lines for Indian textiles and clothing, creating additional opportunities for technical textile exporters.

Outlook

These initiatives are expected to strengthen Indias technical textiles ecosystem by supporting domestic capacity creation, innovation, infrastructure development, technology localisation and export growth.

The Governments continued policy support is aligned with Indias ambition to achieve USD 40 45 billion in technical textile output by 2030, strengthening Indias position as a competitive global alternative under the“China-plus-one” sourcing strategy.

Sources: National Statistical Office (NSO), Ministry of Statistics & Programme Implementation, Government of India (2nd Advance Estimates, FY 2025-26); PIB press release on GDP base revision; Ministry of Textiles, Government of India (Lok Sabha reply, July 2026); Union Budget 2026-27 documents; IBEF Textiles Industry Report

4. Road Ahead

The Indian technical textiles industry is entering a phase of application-led and technology-driven growth, with increasing adoption of engineered textile solutions across infrastructure, construction, agriculture, industrial packaging and other performance-sensitive applications. Indias technical textiles market is estimated at approximately US$22.7 billion in 2026 and is projected to reach US$34.4 billion by 2033, reflecting a CAGR of around 6.1%.

5. Key Developments in FY 2025-26

The most significant development during FY 2025-26 was the full-year consolidation of Global Polyweave Private Limited following the increase in the Companys stake from 55% to 80%, completed pursuant to a rights issue that the Company subscribed to in full.

6. Review of Operations Income and Revenue

Standalone total revenue from operations declined to 41,644.98 lakhs in FY 2025-26 from 48,147.81 lakhs in FY 2024-25, a decrease of approximately 13.5%. The decrease in turnover during the period was primarily attributable to the impact of the US tariff measures, which resulted in increased costs. Consequently, the adverse impact of the US tariffs on market demand and trade conditions contributed significantly to the reduction in turnover compared with the previous period.

Expenses

Total expenses declined to 38,080.54 lakhs from 42,601.53 lakhs in the previous year (down 10.6%), broadly in line with the scale-down in manufactured-goods volumes, though the decline in expenses (10.6%) was smaller than the decline in manufactured-goods revenue (15.3%), indicating some margin compression at the operating level. Profitability Profit Before Tax, before the exceptional item, declined by 16.0% to 5,451.71 lakhs from 6,492.12 lakhs in the previous year. PBT stood at 5,737.53 lakhs, a decline of 11.6% over the previous years 6,492.12 lakhs. Total tax expense for the year was 1,598.90 lakhs, down from 1,682.44 lakhs in the previous year. Profit After Tax (standalone) declined by 13.9% to 4,138.63 lakhs, compared to 4,809.68 lakhs in FY 2024-25.

Earnings per Share (EPS)

EPS (basic and diluted, face value 1 each) declined to 47.26 in FY 2025-26 from 54.92 in the previous year, a decrease of 13.9%, mirroring the movement in PAT as the Companys share capital remained unchanged during the year.

Exports Performance

During FY 2025-26, the Companys export turnover stood at Rs. 36,008.33 lakhs, as compared to Rs. 45,196.20 lakhs in FY 2024-25, registering a decrease of 20.33% over the previous financial year. The decline in exports was primarily attributable to prevailing market conditions and fluctuations in global demand. Despite the challenging external environment, the Company continues to focus on strengthening its international presence and exploring opportunities to expand its export business.

7. Segment-wise Performance

The Company continues to operate in only one reportable business segment, namely the manufacturing of Technical Textiles.

8. Outlook

As Shri Jagdamba Polymers Limited enters FY 2026-27, the Companys outlook is shaped by continuing growth in Indias technical textiles sector. The Companys near-term priorities are expected to include stabilising and rebuilding manufactured-goods volumes, integrating and improving the performance of its now-majority-owned subsidiary, Global Polyweave Private Limited, and continuing to benefit from policy tailwinds such as the PLI Scheme, RoDTEP, and an expanding set of Free Trade Agreements (India-UK CETA, EU FTA, New Zealand FTA). These statements regarding the Companys outlook are forward-looking in nature and are based on managements current expectations and assumptions about future events; actual results could differ materially. [Management confirmation required] on specific FY 2026-27 guidance, capacity-utilisation plans, or targeted end-markets for inclusion in the final Annual Report.

9. Opportunities and Threats

Opportunities

Structural Demand from Infrastructure & Geotextiles: Continued highway, railway, drainage and erosion-control activity is expanding demand for compliant woven and non-woven geotextile products. Expanding Export Access through New Trade Agreements: India-UK CETA, India-EU FTA and New Zealand FTA are creating wider market access and export opportunities.

Continued Policy Tailwinds: PLI, NTTM, PM MITRA Parks and RoDTEP continue to support scale-up, competitiveness and export growth.

Import Substitution and "China-Plus-One" Sourcing Shift: Indias push for import substitution and global sourcing diversification create opportunities for established Indian exporters.

Value-Added and Sustainability-Led Product Development: Growing demand for performance-based, durable and recyclable technical textiles supports higher-value and customised product development. Threats Raw Material and Energy Price Volatility: HDPE, PP and other petrochemical-based inputs remain exposed to crude-oil and energy-price swings, which may increase input, freight and logistics costs. Currency and Trade Policy Exposure: The Companys export-oriented operations remain exposed to rupee volatility, tariff realignments and trade-policy changes in key markets. Intensifying Competition: Rising competition from domestic players and low-cost manufacturing hubs may put pressure on pricing and margins, particularly in commoditised product categories.

10. Conclusion

FY 2025-26 was a year of consolidation and moderation for Shri Jagdamba Polymers Limited. While standalone revenue and profitability declined from the strong levels achieved in FY 2024-25, the Company strengthened its balance sheet, released working capital, reduced borrowings, and deepened its strategic investment in Global Polyweave Private Limited, increasing its stake to 80% and bringing the subsidiary into full-year consolidation. The Groups consolidated results reflect the near-term drag of the subsidiarys start-up losses set against a sizeable increase in consolidated fixed assets, suggestive of capacity built for future growth. The Company remains positioned to participate in the structural growth of Indias technical textiles sector supported by policy initiatives such as the PLI Scheme, NTTM and PM MITRA Parks, and an expanding network of Free Trade Agreements provided it addresses the Company-specific factors behind the FY 2025-26 revenue decline and successfully integrates and stabilises its subsidiary. Continued discipline on raw-material cost management, working capital, and capital allocation will remain central to sustaining the Companys export-oriented, HDPE/PP-focused business model.

11. Human Resources and Industrial Relations

Industrial relations continue to remain cordial during the year and total 1237 employees are on the Companys payroll as on March 31, 2026, as compared to 1303 employees on the Companys payroll as on March 31, 2025.

12. Internal Control

The Company has an adequate internal control system for safeguarding the assets and financial transactions of the Company. The strong internal control systems have been designed in such a way that, not only it prevents fraud and misuse of the Companys resources but also protect shareholders interest.

13. Accounting Policies

The Companys accounting policies have been consistently applied and are consistent with those used in the previous year. The financial statements have been prepared under the historical cost convention on an accrual basis. The management accepts responsibility for the integrity and objectivity of the financial statements, as well as for the various estimates and judgments used therein. With effect from 21 November 2025, the Government of India has consolidated multiple existing labour legislations into a unified framework comprising four Labour Codes collectively referred to as the New Labour Codes. Based on the review of existing wage structure, the Company has estimated that there is no material impact on the standalone financial statements due to these New Labour Codes.

14. Disclosure of Accounting Treatment in Preparation of Financial Statements

The Company has followed all relevant Accounting Standards laid down by the Institute of Chartered Accountants of India (ICAI) and prescribed under Section 133 of the Companies Act, 2013 while preparing its financial statements. The consolidated financial statements have additionally been prepared in accordance with Indian Accounting Standard (Ind AS) 110 on Consolidated Financial Statements and include the results of the Companys subsidiary, Global Polyweave Private Limited.

15. Significant Changes in Key Financial Ratios

Details of significant changes (i.e. Change of 25% or more as compared to the immediately previous financial year) in key financial ratios

Ratio	Numerator	Denominator	FY 2025- 26	FY 2024-25	% Change	Reason for Variance
1 Current Ratio	Current Assets	Current Liabilities	3.54	3.48	1.68%	Variation is not material (below 25%)
2 Debt-Equity Ratio	Total Debt	Total Equity	0.15	0.20	(24.2%)	Variation is not material (below 25%)
3 Debt Service Coverage Ratio	Earnings before Interest, Tax, Depreciation and Exceptional Items	Current maturity of long term debt + Interest Expense	14.97	7.66	95.38%	The Increase in Debt Service Coverage Ratio is due to decrease in repayments of debt and interest cost during the current year.
4 Return on Equity (ROE) (%)	Profit after tax	Average Net worth	13.23%	17.90%	(26.1%)	The decrease in Return on Equity is due to decrease in profit as compared to previous year.
5 Inventory Turnover Ratio	COGS	Average Inventory	6.57	6.30	4.30%	Variation is not material(below 25%)
6 Trade Receivables Turnover Ratio	Revenue from Operations	Average Trade Receivable	3.34	4.06	(17.70%)	Variation is not material (below 25%)
7 Trade Payables Turnover Ratio	Purchases	Average Trade Payable	21.03	17.42	20.73%	Variation is not material (below 25%)
8 Net Capital Turnover Ratio	Revenue from Operations	Average Working Capital	2.29	2.95	(22.30%)	Variation is not material (below 25%)
9 Net Profit Ratio (%)	Profit after tax	Revenue from Operations	9.94%	9.99%	(0.52%)	Variation is not material (below 25%)
10 Return on Capital Employed (ROCE) (%)	EBIT	Capital Employed	16.26%	23.32%	(30.27%)	The decrease in Return on Capital Employed is due to decrease in profit as compared to previous year.
11 Return on Investments (%)	Net Profit	Equity + Reserves & Surplus	12.42%	16.44%	(24.47%)	Variation is not material(below 25%)

16. Cautionary Statement

This Management Discussion and Analysis Report has been prepared in compliance with Regulation 34 read with Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, and Section 134 of the Companies Act, 2013. Certain statements in this Report describing the Companys objectives, projections, estimates, expectations or predictions, including those under Outlook, Road Ahead and elsewhere in this Report, may be forward-looking statements within the meaning of applicable securities laws and regulations. Such statements are based on certain assumptions and expectations of future events, and actual results could differ materially from those expressed or implied therein.