Silky Overseas Ltd Management Discussions

1. Industry Structure and Developments

The Indian textile industry continues to be a global leader, driven by innovations in sustainable fabrics, digital printing, and technical textiles. With the governments focus on initiatives like "Make in India" and the Production Linked Incentive (PLI) scheme, there has been robust growth in domestic manufacturing, export opportunities, and demand for eco-friendly textiles.

The apparel and home textiles markets, specifically, are witnessing heightened demand for premium, customized, and ethically sourced products. The SME segment in India is also increasingly adopting automation and digital supply chain solutions, opening new avenues for integrated textile manufacturers.

Silky Overseas Limited, with over two decades of industry experience and a portfolio focused on high-quality yarn, fabrics, and finished garments, is strategically positioned to leverage these macro trends.

2. Company Overview

Silky Overseas Limited (SOL), incorporated in 2016 under the Companies Act, 2013, is a public company limited by shares, registered with the Registrar of Companies, Haryana. The Company has evolved into an integrated textile enterprise engaged in knitting, dyeing, processing, printing, finishing, and manufacturing of home textile products such as blankets, bed sheets, comforters, and related furnishings under its in-house brand “Rian Decor.”

With a commitment to innovation and sustainability, SOL has developed advanced product ranges that cater to both domestic and international markets. Its integrated business model enables efficiency, consistency in quality, and the ability to serve bulk orders, making it a trusted partner for a wide customer base.

3. Financial Performance Overview

Silky Overseas Limited recorded a change in its financial performance over the past two years, with a decline in both revenue and profitability.

• Revenue from operations decreased from Rs.12,382.20 Lakhs in FY 2024-25 to Rs.10,770.84 Lakhs in FY 202526.

• Profit After Tax (PAT) decreased from Rs.1,038.04 Lakhs in FY 2024-25 to Rs.678.47 Lakhs in FY 2025-26.

The performance during the year reflects the impact of prevailing market conditions and operational factors on the Companys revenue and profitability.

4. IPO and Capital Market Developments

During the financial year 2025-26, Silky Overseas Limited successfully completed its Initial Public Offering (“IPO”). The Company issued and allotted 19,05,600 Equity Shares of face value of Rs.10/- each at an issue price of Rs.161/- per Equity Share, comprising a premium of Rs.151/- per Equity Share, aggregating to approximately Rs.30.67 crore.

Subsequently, the Equity Shares of the Company were listed on the NSE Emerge Platform, being the SME Platform of the National Stock Exchange of India Limited, on 07th July, 2025.

The proceeds raised through the IPO were utilized towards the objects specified in the Offer Document, including capacity expansion, upgradation/adoption of sustainable dyeing technology and augmentation of working capital requirements.

5. Business Strategy and Outlook

The Company continues to focus on strengthening its position as an integrated home textiles manufacturer by enhancing manufacturing capabilities, improving operational efficiencies and adopting modern technologies. During the year, the

Company remained focused on strengthening its product portfolio, improving quality standards and optimizing its production and supply chain capabilities.

Going forward, the Company aims to further modernize and expand its manufacturing infrastructure, enhance operational efficiencies and strengthen working capital to support increasing domestic and export requirements. The Company will continue to explore opportunities to expand its presence in key international markets, including the Middle East and Europe, while strengthening its domestic market presence.

The Company also remains focused on enhancing the market presence of its "Rian Decor” brand across its home textile product portfolio, including blankets, curtains and bedsheets. Through continued focus on product quality, innovation, customer relationships and sustainable business practices, the Company seeks to achieve consistent and sustainable growth in the coming years.

6. Opportunities and Threats Opportunities:

The Indian textile industry presents significant growth opportunities driven by increasing demand for sustainable, premium and value-added textile products. Government initiatives such as “Make in India” and the PLI Scheme, along with growing domestic and export demand for home textiles, provide a favourable environment for expansion. With its integrated manufacturing capabilities and industry experience, the Company is well positioned to leverage these opportunities and strengthen its presence across domestic and international markets.

Threats:

The Company operates in a highly competitive industry and is exposed to fluctuations in raw material prices, changing consumer preferences, competitive pricing pressures and volatility in domestic and international markets. Increasing competition from domestic and global manufacturers, coupled with evolving quality, sustainability and delivery expectations, may impact margins and operations. Changes in trade policies, global economic conditions and foreign exchange rates may also pose challenges to the Companys growth.

7. Risk Management

Silky Overseas Limited has established a comprehensive risk management framework to identify, monitor, and mitigate business risks. The Company manages supply chain risks by maintaining long-term relationships with reliable vendors and diversifying its raw material sources.

Given its domestic market orientation, SOLs primary risks relate to raw material price volatility (especially cotton and polyester) and changing consumer demand trends. The Company closely tracks market conditions and adopts timely procurement strategies to reduce the impact of cost fluctuations.

In addition, SOL places strong emphasis on regulatory compliance and operational risks. Regular internal controls, statutory audits, and adherence to quality certifications (ISO, GOTS, OEKO-TEX?) ensure business continuity, transparency, and sustainability of operations.

8. Human Resources and Internal Controls

Silky Overseas Limited recognizes its workforce as a key driver of growth. The Company maintains a team of skilled and semiskilled employees across manufacturing and operations and continues to invest in training and skill development to enhance productivity and quality standards. With planned capacity expansion, the workforce will be scaled up in line with operational requirements.

The Company has also established a framework of robust internal controls to ensure efficiency, safeguard assets, and maintain financial and operational compliance. Regular internal audits, management reviews, and statutory checks are conducted to strengthen governance and support sustainable business growth.

9. Cautionary Statement

This Management Discussion and Analysis Report (Annexure IV) may contain certain forward-looking statements that are based on current expectations, assumptions, and forecasts regarding future events. These statements are subject to known and unknown risks, uncertainties, and market conditions, which may cause actual results, performance, or achievements to differ materially from those expressed or implied. Readers are advised not to place undue reliance on these statements, as the Company undertakes no obligation to publicly update or revise them in light of subsequent developments.

	By Order of the Board of Directors
	For Silky Overseas Limited
	Sd/-
	Sawar Mal Goyal
Date: August 13, 2026	Managing Director
Place: Haryana	DIN-01896767