Shricon Industries Ltd Management Discussions

ECONOMY OVERVIEW

During the financial year ended 31st March 2026, the global economy was resilient but uneven-an important backdrop for FMCG demand, input costs, and execution across modern and general trade. Services-led growth alongside a softer goods cycle translated into mixed category momentum, with valueseeking behavior and smaller pack sizes more evident where real incomes were under pressure. The IMF World Economic Outlook (October 2025) projected global growth moderating from 3.2% (2025) to 3.1%

(2026) ; the WEO Update (January 2026) revised the outlook slightly higher to 3.3% (2026) and 3.2%

(2027) , consistent with continued but uneven disinflation. For FMCG, this typically supports relative volume resilience in essential categories, while keeping discretionary and premium segments more sensitive to price architecture, promotions, and channel mix. Cost conditions remained two-speed: easing headline inflation helped in some markets, but energy and food volatility and periodic shipping and freight disruption continued to create episodic pressure on commodities, packaging, and logistics costs. McKinseys Economic conditions outlook (March 2026) highlighted a sharp increase in perceived geopolitical risk (72% vs 51% in December 2025) and the re-emergence of energy prices among top risks, raising the probability of sudden moves in resin, fuel, and freight costs and sharpening price-versus-margin trade-offs.

INDIAN ECONOMIC OVERVIEW

India continues to demonstrate resilience amid global macroeconomic instability and ongoing geopolitical tensions. Real GDP is projected at 7.6% in FY 2025-26, reaffirming Indias position as the fastest- growing major economy. Robust demand, sustained infrastructure development, favourable policy reforms, and strong consumer and business sentiments were the fundamental drivers of growth. Government initiatives, such as Make in India, Production Linked Incentive (PLI) scheme, etc., continue to promote development, capacity building, and self-reliance, helping India navigate external uncertainties.

DIGITAL ADOPTION IN INDIA

Indias digital adoption has witnessed exponential growth in recent years, Indias internet user base is approaching 958 Mn Active Internet Users (AIUs) in 2025. This represents an 8% YoY growth, reinforcing Indias position as one of the worlds largest and fastest-growing digital markets. Rising artificial intelligence (AI) adoption, short-form video consumption, and e-commerce growth continue to drive Indias digital transformation, reshaping consumer behavior and business engagement models across sectors.

AI adoption in marketing, retail, and e-commerce is among the fastest-growing segments with nearly 44% of active internet users engaging with AI-enabled features such as voice search, image-based search, chatbots, and AI filters. Businesses are also increasingly adopting and deploying features such as Agentic AI, hyper-personalization, conversational commerce, and predictive analytics, changing how they navigate across the digital landscape.

The digital revolution has ushered in a new phase of expansion for MSMEs. E-commerce platforms, digital payments, and online marketing tools have enabled small businesses to expand their reach, improve customer engagement, and compete in the global marketplace. The Digital India initiative has accelerated the digital transformation of small firms, facilitating online registrations, access to credit, and e-governance services. Key platforms and services, such as UPI, Aadhaar, Digi Locker, E-Invoicing, E- way Bill, TReDS, ONDC, OCEN, and the Digital MSME Scheme have significantly reduced complexities in business processes, improved access to credit, and opened new digital avenues.

OPPORTUNITIES & THREATS

The sector continues to offer significant long-term opportunities, supported by favorable demographics, rising urbanization, premiumisation in select segments and the growing relevance of modern trade, e- commerce and quick commerce. At the same time, the sector remains exposed to commodity volatility, uneven rural recovery, climate and monsoon variability, competitive intensity, evolving food safety and labelling requirements, and rapid channel shifts.

Your Company is committed to creating long-term value for stakeholders through sustainable growth and enhanced resource efficiency. In line with this commitment, key business risks and opportunities are systematically identified, assessed and managed on an ongoing basis to strengthen resilience and support timely decision-making. Mitigation actions are monitored periodically, and the Risk Management and Sustainability Initiatives (RMSI) Committee reviews progress periodically to provide oversight and guidance on implementation and monitoring of mitigation actions and responding to evolving business conditions.

Risks

Economic fluctuations and supply chain disruptions

Macroeconomic volatility may adversely impact consumer sentiment and discretionary spending, potentially shifting demand toward value offerings and necessitating timely adjustments.

Your Company manages inflationary and commodity price risks through a structured procurement and cost-management framework, including continuous monitoring of relevant indices, early identification of cost trends, and efficiency initiatives across the value chain. Focused cost-optimization programmes further enhance resilience during periods of elevated input cost inflation. Supply chain disruptions may arise from economic slowdowns, inflation, currency volatility, geopolitical developments, and natural disasters, and can affect raw material availability, labour capacity and logistics costs.

Your Companys supply chain strategy is designed to enhance resilience and agility, supported by strong partnerships and technology enablement across the value chain. These capabilities are continuously strengthened to mitigate disruption risk, safeguard operations and support sustainable growth.

Evolving consumer preferences

Consumer preferences continue to evolve due to demographic shifts, global food trends and changing consumption habits influenced by digital and social media platforms. Demand for quality and convenience is rising across metropolitan markets as well as smaller towns and villages, with increasing expectations for availability and ease of access.

Rising aspirations in both urban and rural markets are elevating expectations for speed, convenience and a seamless purchasing experience. Any delay in responding to these shifts may impact competitiveness and growth.

In response, your Company continues to strengthen its core brands and accelerate innovation aligned with evolving consumer needs. Data analytics and consumer research are leveraged to deepen insights and translate them into products that address diverse taste profiles and dietary preferences across geographies.

To enhance accessibility, your Company is expanding its presence in underpenetrated small towns and large villages, thereby broadening reach and strengthening market penetration.

Food safety and quality

Food safety and product quality are fundamental to maintaining consumer trust and protecting your Companys reputation. In a competitive environment, any lapse may have a disproportionate impact on brand equity and consumer loyalty.

Your Company prioritizes consumer safety through a comprehensive quality assurance framework, with stringent controls applied across the value chain-from raw material sourcing and manufacturing to finished goods-to ensure consistent quality and compliance with applicable standards

A strong culture of quality and accountability is reinforced through defined standards, training programmes and ongoing engagement with employees and relevant third parties, supporting ownership of quality across operations.

A dedicated consumer complaint redressal mechanism is in place to monitor and address food safety and quality concerns in a timely manner, thereby reinforcing consumer confidence and supporting consistent delivery of high-quality products.

INTERNAL CONTROLS

The Company has established a robust internal control framework supported by well-defined systems, policies and procedures to safeguard assets and ensure financial discipline. These internal controls are designed to align with the nature, scale and complexity of the Companys operations. During the year, these controls were rigorously reviewed and tested through internal audits, and no material weaknesses were observed.

COMPANY OVERVIEW

Indias burgeoning digital adoption, particularly among MSMEs, presents substantial growth opportunities. As enterprises increasingly transition toward online discovery, digital compliance, and technology-enabled operations, the demand for integrated B2B platforms is expected to increase further.

We are leveraging AI to streamline this transition, deploying it for efficient and effective matchmaking for buyers and automated catalog enhancement and engagement tools for sellers to ensure frictionless, high-intent business connections.

Shricon Industries strong brand equity, differentiated value proposition, market leadership, and product capabilities provide a solid foundation for sustained growth. Our continued investments and strategic acquisitions position us to deliver lasting value to our stakeholders.

We remain optimistic about leveraging our strengths and innovative capabilities to reinforce our leadership position. Guided by our purpose of Make doing business easy in India, we continue to empower enterprises and contribute meaningfully to the nations socio-economic transformation.

DATA PRIVACY AND RISK MANAGEMENT

We have adequate systems and protocols in place for the effective identification and management of risks. The risk management framework is regularly updated, ensuring it remains agile and responsive to the evolving business landscape.

We have implemented a comprehensive Information Security Policy to address IP rights and safeguard the Company from information security lapses.

FINANCIAL PERFORMANCE

Shricon Industries followed the accrual basis of accounting under the historical cost convention. Its accounts were prepared on the basis of Ind AS as per Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules 2014.

Balance Sheet

Sr. No. Particulars	31/03/2026	31/03/2025
	Amount Rs. In lakhs
1 Borrowings	0.00	0.93
2 Non-current assets	255.52	334.45
3 Other Non-current liabilities	0	0

Profit & Loss statement

Sr. No Particulars	31/03/2026	31/03/2025	Increase / (Decrease) over previous year
1 Total Revenues	403.39	58.83	344.56
2 Expenses	223.25	73.66	149.59
3 EBITDA	223.87	74.53	149.34
4 Finance Cost	0.05	0.08	-0.03
5 Depreciation and amortisation	0.62	0.87	-0.25
6 Profit (Loss) after tax	147.84	-14.83	162.67

Working capital management

Sr. No. Particulars	31/03/2026	31/03/2025
	Amount Rs. In lakhs
1 Current assets	338.63	85.86
2 Current ratio	12.00	63.96
3 Inventories	3.66	0.65
4 Current liabilities	28.23	1.34
5 Cash and bank balances	51.51	15.58

KEY Ratios:

Particulars	Numerator	Denominator	31.03.2026	31.03.2025	Variance%	Reason for variance of above 25%
Current Ratio (no. of times)	Current Assets	Current Liabilities	12.00	63.96	-81%	Current Assets increased in Current year as compared to previous year.
Debt Equity ratio (no. of times)	Total Debt	Shareholders Equity	0.050	0.005	820%	Ratio change due to loss in company in current year as compare to previous year.
Debt service (Interest coverage) ratio (no. of times)	Earnings before Interest and Tax	Interest Charges	NA	NA	NA	Company has no term loan, therefore not applicable.
Return on	Net Profits	Average	0.26	-0.04	-836%	Ratio change due to

Equity Ratio (%) Inventory turnover ratio (no. of times) Trade Receivables turnover ratio (no. of times) Trade payables turnover ratio (no. of times) Net Capital Turnover Ratio Net profit ratio (%) Return on Capital employed (%) Return on Investment	after taxes	Shareholders Equity				loss in current year as compare to previous year.
	Cost of goods sold (or) sales	Average Inventory	200.67	44.98	346%	NA
	Net Credit Sales	Average trade receivables	5.74	24.34	-76%	Turnover of Company low in current year as compared to previous year reporting Y ear.
	Net Credit Purchases	Average trade payables	NA	NA	NA	NA
	Net Sales	Working Capital	1.40	0.73	90%	Turnover of Company low in current year as compared to previous year reporting Y ear.
	Net Profits after taxes	Net Sales	0.33	-0.22	-252%	Ratio change due to loss in current year as compare to previous year.
	Earnings before interest and taxes	Capital Employed	0.40	-0.01	-106%	Company have no capital gain in current year as compared to previous year
	Income on investment	Investment made by company	0.01	0.00	NA	NA

CAUTIONARY STATEMENT

The statements in the Management Discussion and Analysis outlining the Companys objectives, projections, estimates and expectations may be considered forward-looking statements under applicable laws and regulations. Actual results may differ significantly from those expressed or implied due to various factors. Key influences include climatic conditions, economic fluctuations impacting demand- supply dynamics and pricing in both domestic and international markets, regulatory changes, amendments in tax laws and other unforeseen factors.