Siyaram Silk Mills Ltd Management Discussions

ECONOMIC OVERVIEW Global Economy

The global economy demonstrated resilience in 2025 despite challenges such as rising tariffs, trade policy uncertainties, fiscal consolidation in major economies and persistent geopolitical tensions. Ongoing conflicts in Eastern Europe and the Middle East, including the Russia-Ukraine war, continued to disrupt supply chains, energy markets and investor sentiment, leading to periodic volatility in commodity prices and financial conditions. However, economies gradually adapted through diversified trade routes, enhanced energy security and supportive policy measures, enabling a more stable recovery. According to the International Monetary Fund, global growth is expected to improve marginally from 3.3% in 2024 to 3.4% in 2025, supported by strong technology investments, including artificial intelligence, alongside accommodative financial conditions. Advanced economies are projected to grow at around 1.9% in 2025, while Emerging Markets and Developing Economies are expected to expand by 4.4%. Global inflation is estimated to ease to 4.1%, though it remains uneven across regions.

Future Outlook

The global economy is expected to face renewed uncertainty in 2026, mainly due to the ongoing conflict in West Asia, particularly tensions involving the United States, Israel, and Iran. If geopolitical tensions persist, prolonged disruptions in oil, LNG, fertilisers, and critical industrial inputs could lead to sustained inflation, tighter financial conditions, and weaker global growth. However, improving diplomatic efforts, strategic energy diversification, and stronger regional cooperation are expected to gradually ease these pressures, supporting supply chain stability, moderating inflation, and fostering a balanced and resilient global economic recovery.

Global growth is projected to moderate to 3.1% in 2026 and improve slightly to 3.2% in 2027, supported by stable demand, technology investments, and improving trade opportunities, despite risks from geopolitical tensions and trade policy uncertainty. Advanced economies are expected to grow at 1.8% in 2026, while EMDEs are projected to grow by 3.9%, supported by domestic demand and infrastructure spending.

Growth in the United States (U.S.) remains a key driver of the global outlook, with the IMF raising the U.S. forecast, with GDP projected to grow by about 2.3% in 2026 and 2.1% in 2027. Central banks are expected to remain cautious, while governments focus on fiscal discipline, targeted policy support, and supply chain resilience. Overall, the outlook reflects a balance between headwinds and emerging growth drivers, with investment-led productivity gaining momentum across sectors.

(Source: IMF World Economic Outlook April 2026)

Indian Economy

The Indian economy remained one of the fastest-growing major economies in FY26, supported by domestic demand, infrastructure-led investment and sustained structural reforms. According to the Second Advance Estimates released by the National Statistical Office, real GDP is estimated to grow by 7.6% during the year, driven primarily by private consumption and investment, with the services sector continuing to anchor growth. The manufacturing sector showed gradual improvement, supported by policy incentives, capacity expansion and supply chain diversification, while agriculture provided stability despite structural challenges. Real Gross Value Added (GVA) is estimated at 7 294.40 Lakh Crore, reflecting a growth of 7.7% over 7 273.36 Lakh Crore in FY25.

India continues to rank among the worlds largest economies, currently placed sixth in nominal GDP terms as per the International Monetary Fund. While rankings may be influenced by currency fluctuations and statistical revisions, the underlying strength of Indias growth story remains intact, supported by reforms such as the Goods and Services Tax (GST), increasing formalisation, improved ease of doing business and the Governments longterm vision of Viksit Bharat.

Inflation moderated during the year, supported by favourable supply conditions and easing food prices. The Reserve Bank of India revised its CPI inflation forecast for FY26 to 2.0%, down from 2.6%, and reduced the repo rate by a cumulative 125 basis points to 5.25%, maintaining a balanced stance amid evolving global uncertainties.

The manufacturing sector gained further traction in 2026, driven by initiatives such as the Production Linked Incentive (PLI) scheme, rising investments and improving capacity utilisation. Key sectors, including electronics, automobiles, chemicals and textiles, contributed to growth, with a focus on enhancing domestic production and export competitiveness under the Make in India 2.0 framework. Indias exports are expected to approach US$ 1 Trillion in FY27, supported by expanding trade partnerships, tariff rationalisation and export promotion measures.

The Union Budget FY27 reinforces this momentum with a record capital expenditure outlay of 7 12.2 Lakh Crore, marking an increase of nearly 9% year-on-year. The continued focus on infrastructure development across transport, logistics and urban sectors, along with targeted support for MSMEs and manufacturing, is expected to drive investment, improve connectivity and sustain economic growth.

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INDUSTRY OVERVIEW

Indian Textile and Apparel Industry

Indias textile and apparel industry is one of the oldest and most significant sectors of the economy, deeply rooted in the countrys cultural heritage and closely linked to agriculture. The industry derives its core strength from a diverse raw material base, including cotton, jute, silk and man-made fibres, supported by a large and skilled workforce. Its strong value chain spanning fibre, yarn, fabric and garments positions it as a strategically important manufacturing sector in India.

The textile and apparel industry remains a vital pillar of the Indian economy, contributing around 2% to the countrys GDP and approximately 11% to manufacturing Gross Value Added (GVA) as of August 2025. Beyond its economic contribution, the sector plays a significant role in employment generation, engaging over 45 Million people across the value chain. It also demonstrates strong production capabilities, with an annual output of nearly 22,000 Million garments. Looking ahead, the industry is poised for substantial expansion, with its share in GDP expected to more than double and reach close to 5% by 2030, supported by favourable policy initiatives, rising domestic demand and increasing global integration.

India has established itself as a major global textile hub, ranking among the leading producers and exporters of textiles and apparel. The country continues to maintain a strong presence across global markets, with exports reaching T 3,16,334.9 Crore in FY26, registering a growth of 2.1%, despite challenging global demand conditions. Ready-made garments remained the largest export segment, while man-made fibre (MMF) products recorded relatively stronger growth compared to cotton-based categories, reflecting a gradual shift in global demand patterns.

The Indian textile market reached US$ 152.40 Billion in 2025 and is projected to reach US$ 213.75 Billion by 2034, growing at a CAGR of 3.83% during 2026-2034, driven by rising consumption, product diversification and technological advancements. Growth is further supported by increasing urbanisation, rising disposable incomes, the expansion of organised retail, and demand for value-added and sustainable textile products.

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Manmade Fibres

Within the textile sector, Indias man-made fibre (MMF) segment has emerged as a key growth driver, supported by rising domestic demand, evolving global consumption patterns and strong policy push. India produces a wide range of synthetic fibres, including polyester, viscose, nylon and acrylic, enabling a relatively integrated value chain from raw materials to finished garments. This structural advantage strengthens Indias positioning in both domestic and international markets.

The demand for MMF has been steadily growing, driven by applications in apparel, home textiles, and industrial and technical textiles. Compared to natural fibres, MMFs offer advantages such as durability, cost-effectiveness, versatility, and performance characteristics, making them suitable for diverse end-use sectors, including automotive, healthcare, and infrastructure. The rising demand for technical textiles and functional fabrics has further accelerated the adoption of MMFs in recent years.

Man-made yarn, fabrics and made-ups recorded relatively stronger performance during the year, with exports growing by 3.6%, increasing from T 41,196.0 Crore to T 42,687.8 Crore. This growth reflects rising global demand for MMF-based products, supported by increasing preference for performance fabrics, blended textiles and value-added applications across key export markets.

Recognising MMF as a strategic lever for export growth, the government has undertaken targeted reforms to reduce cost disadvantages and encourage large-scale investments. Key among these is the Production Linked Incentive (PLI) Scheme for Textiles, with an outlay of T 10,683 Crore, specifically designed to promote MMF apparel, MMF fabrics, and technical textile products. Recent amendments to the scheme have further lowered entry barriers by reducing minimum investment thresholds, expanding eligible product categories, and easing incremental turnover requirements, thereby improving ease of doing business and accelerating project execution.

Complementing this, GST rationalisation has corrected inverted duty structures by reducing GST on MMF fibres and yarns to 5%, significantly improving working capital efficiency for manufacturers and aligning fibre-yarn-fabric tax rates.

Given their specific properties, such as durability, elasticity, moisture-wicking capabilities, and resistance to wrinkling and fading, the Indian Synthetic Fibre Market is expected to reach 6.21 Million Metric Tonnes by 2030 with a CAGR of 5.64%.

Growth in the MMF segment is driven by limited cotton supply, rising demand for technical textiles, and increasing adoption of sustainable and recycled fibres. Supported by the China+1 strategy and favourable policy initiatives, MMFs are set to strengthen Indias global textile competitiveness.

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Key Growth Drivers

• Growing Textile Demand: Indias large and growing population drives demand for apparel and textile products. Ongoing urbanisation enhances the need for varied clothing options, contributing to higher consumption of synthetic fibre.

• Government Initiatives: Government initiatives constantly shape the growth of Indias textile industry by reinforcing manufacturing capabilities and strengthening competitiveness across the value chain. Policy measures, including Production-Linked Incentive Schemes, export facilitation and infrastructure investment, are supporting technology adoption, capacity expansion and industry sustainability.

• Rising need for Sustainable Fabrics: With the increasing shift towards sustainable fabrics, consumer preferences and industry strategies are shaped in the Indian synthetic fibre market. Growing environmental consciousness is driving demand for eco-friendly textile alternatives that reduce environmental impact.

Free Trade Agreements: Key Benefits

Indias Free Trade Agreement (FTA) agenda also saw major progress during FY26, with important implications for the textile and apparel sector. Recent agreements, such as the India-European Union Free Trade Agreement and India-United Kingdom Free Trade Agreement, are expected to significantly benefit the sector by eliminating import duties, thereby placing Indian exporters on par with competitors like Bangladesh and Vietnam.

Zero-duty access for textiles and clothing under the trade deal, experts said, will unlock the EUs 22.9 Lakh Crore (US$ 263.5 Billion) import market for Indian exporters. The European Union (EU) is Indias second-largest export destination for textiles and apparel after the US. Indian apparel exports are likely to grow by 20-25% year-on-year after the operationalisation of the FTA, against the current growth rate of 3.01% in the EU market. Additionally, the UK agreement alone is expected to increase textile and apparel imports from India by up to £2.9 Billion (85%) over time, driven by tariff reductions and improved trade conditions. Beyond tariff benefits, FTAs also address non-tariff barriers, improve regulatory transparency, and facilitate integration into global value chains, thereby supporting investment, technology transfer and employment across textile clusters.

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Industry Outlook

The Indian textile and apparel industry is expected to witness sustainable growth, supported by domestic consumption and a gradual recovery in global demand. The sector continues to benefit from rising incomes, urbanisation and adoption of organised retail and e-commerce, which are driving consumption across both essential and discretionary categories.

On the global front, improving trade dynamics, supply chain diversification and expanding market access through trade agreements are creating new opportunities for Indian exporters. The shift in sourcing strategies by global brands, particularly under the China+1 approach, is further strengthening Indias position as a reliable manufacturing hub. Globally, the textile market is projected to grow from US$ 1,065.45 Billion in 2026 to US$ 1,955.50 Billion by 2034, reflecting a strong expansion trajectory and creating significant opportunities for India to enhance its export share. In parallel, high-growth segments such as technical textiles are expected to scale rapidly, driven by increasing applications across sectors including infrastructure, healthcare and automotive.

Growth is also being supported by shifts within the industry, including increasing adoption of man-made fibres, rising demand for technical and value-added textiles, and a focus on sustainability and compliance-led manufacturing. Technological advancements, digitalisation and investments in modern infrastructure are expected to enhance productivity and efficiency across the value chain.

While near-term challenges such as demand fluctuations and input cost volatility may persist due to the geopolitical disruption in the Middle East. The industrys strong fundamentals, diversified capabilities and continued policy support position it well to expand its global footprint and drive long-term growth.

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Government Support

Government support remains integral to the growth of Indias textile and apparel sector, with a continued focus on scale, competitiveness and value chain integration. Key initiatives include the PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks, the Production Linked Incentive (PLI) Scheme for man-made fibre and technical textiles, and SAMARTH (Scheme for Capacity Building in Textile Sector) for workforce skilling. Additionally, the Amended Technology Upgradation Fund Scheme (ATUFS) and the National Technical Textiles Mission (NTTM) continue to support modernisation and innovation, while programmes such as Silk Samagra-2 and the Integrated Wool Development Programme strengthen raw material ecosystems.

In addition to ATUFS, various state textile policies continued to offer incentives such as capital subsidies, interest subsidies, stamp duty exemptions, power tariff concessions and employment- linked benefits, supporting fresh investments and capacity expansion across textile clusters.

Under the Union Budget 2026-27, the Ministry of Textiles was allocated 7 5,279.01 Crore, with emphasis on cluster development, sustainability and employment generation. The introduction of an Integrated Textiles Programme, including the Textile Expansion and Employment Scheme (TEEM), aims to modernise traditional clusters and improve productivity.

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Key Opportunities and Challenges

Opportunities

• Increasing Purchasing Power: With the expansion of Indias middle-class population and higher disposable incomes, high-quality textiles and apparel are witnessing a surge in spending.

• Company has presence in retail channel in a very small way. The Major Sales of Company is coming from a Distribution Channels. Now we are entering into fashion Retail Channels, that too we are in early Stages. At present, we are not in E-Commerce nor in Online Platforms.

• Focus on Sustainability: Growing consumer inclination towards environmentally responsible textiles is influencing product development and sourcing across the industry, making avenues for sustainable materials.

• Trade Agreements: India benefits from shifts in global sourcing, as trade agreements, including the Comprehensive Economic Partnership Agreement (CEPA) and FTAs, reinforce its attractiveness as an alternative manufacturing and export base.

• Policy Support: Government initiatives, such as PM MITRA Parks, facilitate the development of integrated textile ecosystems, scale efficiencies, and generate investment inflows and employment.

• Digitalising Consumer Demand: Expanding digital platforms and social media reach is reshaping consumer preferences, boosting demand for fashion-led, branded and digitally accessible fashion products.

Challenges

Below are some of the key challenges faced by the Indian textile industry

• Raw Materials Sourcing and Cost Volatility: Lower domestic cotton output constrains supply, leading to increased imports and heightened price volatility. Man-made fibre and speciality yarn prices are higher, relative to competing manufacturing locations, affecting cost competitiveness.

• Export Market Pressure: Exports witnessed pressure, amid subdued global demand, adverse tariff structure and intense price competition. Restrained Free Trade Agreements with major markets reduced export market access.

• Global Competition: Competing textile exporting countries benefit from an integrated supply chain, preferential trade access and lower labour costs, leading to order diversion. Growing imports of low-priced garments and textiles exert pricing pressure in particular domestic market segments.

• Operational Constraints: Industry fragmentation and a high proportion of small and medium enterprises restrain operational efficiency and economies of scale. Uneven adoption of automation limits productivity across the value chain.

• Variable Domestic Demand: Domestic consumption continues to remain sensitive to discretionary spending patterns and inflation. A shift toward value pricing impacts margin pressure in mass-market apparel.

• Regulatory Challenges: Evolving regulatory requirements and indirect tax increase cost complexity and planning uncertainty. Quality control norms add compliance cost, particularly for smaller enterprises.

• Sustainability Compliance: Rising buyer expectations on environmental compliance, traceability, and sustainability necessitate extra capital investment. High chemical, water, and energy intensity in processing operations limit alignment with evolving environmental norms.

• Working Capital Issue: Order volatility and extended receivable cycles restrict working capital. Lender risk aversion and tighter credit conditions limit access to timely financing.

Company Overview

Siyaram Silk Mills Limited (Siyarams) is a well-recognised name in Indias textile and fashion sector, with around 48 years of operating experience. The Company has established its market presence through a wide range of trusted brands and a diversified portfolio of offerings, including apparel, fabrics and different textile products.

Siyarams brand philosophy centres on improving environmental sustainability, social responsibility and business expansion. The operating model combines strategic outsourcing and in-house capabilities, enhancing scalability and an asset-light approach to manufacturing and distribution. Owing to its franchise-led retail model, the Company offers its partners growth opportunities and a sustainable business model.

With a constant focus on product quality, Siyaram establishes a distinct market position within Indias evolving textile and fashion industry. The Companys varied range of brands, sub-brands and fabrics caters to different consumer requirements across multiple segments. The product portfolio is diversified, spanning both premium and value-oriented segments. The Company emphasises manufacturing fabrics and apparel, using blends of cotton, bamboo, poly-viscose, linen, stretch materials and wool. These products are marketed under its established brands across Indias fast-growing markets. Siyarams is an ISO 14001:2008, 45001: certified company, with integrated state-of-the-art manufacturing plants across Tarapur, Daman, Amravati and Silvassa.

Key Brands

Fabrics	Garments	Retain Business
Siyarams	Oxemberg	ZECODE
J. Hampstead, Cadini	J. Hampstead	DEVO

Key Market Differentiators

• Brand Ethos: Since its inception, Siyaram has been a household name, building on its legacy of excellence. Focussing on craftsmanship, innovation and quality, the Company has achieved remarkable growth, contributing to its recognition across Indian and international markets. As a result, the Company continues to connect with a broader customer base.

• Visionary Leadership and Management Oversight:

The Company benefits from an experienced leadership team, having extensive industry expertise, innovative thinking and proven capabilities in operational and strategic execution. The managements guidance and support strengthen its growth, financial performance and operational efficiency, ensuring a resilient business foundation.

• Established Success Record: With a portfolio of well- established menswear brands, the Company is uniquely positioned to offer timeless and versatile styles appropriate to every occasion. Despite operating in a highly competitive industry, the Company upholds its strong financial practices, delivers high-quality products and generates sustainable returns for its various stakeholders.

• Established leader in policy viscose: Siyaram has a market-leading position in Indias poly-viscose fabric market, leveraging poly-viscoses economic advantage and durability over cotton, the dominant material of the industry. This strategy increases product affordability and durability while mitigating the Companys exposure to cotton price volatility.

• Low Debt Profile: The Company maintains a prudent approach to financial management, strengthened by a low debt position and sustained shareholders returns through dividends. By emphasising organic and sustainable development, the Company delivers consistent profitability over time.

• Asset-light business framework: An asset-light

operating model enables the Company to optimise return on capital employed (ROCE), improve capital deployment and strengthen its balance sheet, ensuring sustainable longterm growth.

• Diverse Product Range: The Company offers a varied range of fabrics, textile products and ready-made garments, designed to serve a diverse occasion and end-use requirements. Its product range encompasses occasion, athleisure, formal and casual categories and can be accessed by integrated retail and digital channels, addressing changing consumer needs across demographics.

• Quality Products: Quality assurance is prioritised in the Companys premium and high-fashion product portfolio, across India and overseas markets.

• Extensive Distribution: The Company has established a strong and deeply penetrated distribution network comprising agents, dealers and multi-brand outlets, enabling widespread market reach across diverse geographies.

• Preferred Partner: The Company is a trusted partner for the design industry and textiles stakeholders, providing high-quality fabrics, exceptional value and design-driven innovation that delivers long-term consumer value.

• Market Expansion: Expanding into Tier II and Tier III markets is a strategic priority, led by initiatives to capture opportunities arising from the unorganised sectors. The Companys international operations are supported by its focussed marketing strategies, establishing a recognised presence for its fabrics across global markets.

New Launches and Key Developments, FY26

During FY26, the Company continued to strengthen its retail presence through the expansion of its new-age brands, ZECODE (fast fashion) and DEVO (ethnic wear), with a total addition of 35 stores across both formats during the year. The retail strategy focussed on large-format stores in high-footfall locations, enhancing customer experience and brand visibility. Marketing and brand-building initiatives were intensified through billboards, digital campaigns and on-ground activations.

The Company also strengthened its in-house design and R&D capabilities, introducing innovative fabric blends such as bamboo, linen and stretch. Growth in the Indigo yarn segment supported diversification, while strategic investments in retail expansion and core operations were undertaken.

Growth Strategies

Strategic Expansion of Distribution Network: Siyaram is steadily increasing its reach, with a strategic focus on expanding in the fast-growing Tier II and Tier III cities. The Company continues to enhance its distribution and manufacturing capabilities through strategic collaborations with outsourcing partners. Supported by an extensive distribution footprint and broader market reach across India, Siyaram remains well positioned to address its growth objectives.

Expansion of New Age Brand: The Company is progressively establishing additional retail outlets to improve its customer base, offering a seamless shopping experience and addressing the rising demand for fast fashion offerings in New Fashion Brand.

Comprehensive Distribution Network: The Company continues to enhance its distribution and manufacturing capabilities through strategic collaborations with outsourcing partners. Supported by an extensive distribution footprint and broader market reach across India, Siyaram remains well- positioned to address its growth objectives.

Leveraging Brand Presence: The Company is focussed on strengthening brand visibility to build a loyal global consumer base and expand its international footprint.

Innovation-focussed Approach: The Company combines contemporary design and traditional craftsmanship, strengthening quality enhancement and product portfolio. Prioritising innovation makes it more focussed on anticipating market trends.

Empowering Tailors: The Company remains actively committed to strengthening Indias tailoring community by providing skill development programmes and promoting sustainable livelihood opportunities. Owing to its constant innovation, the Company sustains leadership in the competitive fashion industry.

Areas of Focus

Elevating Consumer Experience: The Company monitors consumer feedback regularly to tailor products to evolving preferences.

Targeted Product Strategy: The Company streamlines SKUs and prioritises high demand designs to enhance profitability, inventory management and working capital efficiency.

Focussed Marketing Efforts: Leveraging conventional marketing strategies, the Company expands its reach across Tier I, Tier II and Tier III cities.

Accelerating Digital Transformation: The Company is leveraging digitalisation across operations to improve efficiency and train employees to adapt to new digital tools effectively.

Future Outlook

The Company remains focussed on calibrated expansion while strengthening its core fabric business and advancing its Siyaram 2.0 strategy towards a diversified fabric-to-fashion model. Retail growth through ZECODE and DEVO is gaining traction, with encouraging consumer response, and is expected to contribute meaningfully to revenues over time. Expansion will remain cluster- based and region-focussed, supported by a strong distribution network across Tier I, II and III markets.

The Company continues to invest in design, R&D and innovation, leveraging in-house capabilities and global trend integration, while exploring forward integration into garments to enhance value addition. Marketing initiatives are being strengthened through digital engagement and targeted campaigns to drive demand and deepen customer connections.

Operational efficiencies, disciplined capital allocation and a stable EBITDA outlook (~14%) remain key priorities. With improving export opportunities and a clear long-term vision, the Company is well-positioned to drive sustainable growth and enhance market presence.

Risk Management

The Company has established a robust management framework to proactively identify, analyse and reduce key business and operational risks. Key risks, related impacts and mitigation actions are detailed below:

Risks	Impact	Mitigation
Microeconomic Risk	The Company derives the majority of its revenue from the domestic market, with exports contributing a relatively small share of total sales. Accordingly, it is more exposed to domestic economic conditions such as changes in consumer demand, inflation, interest rates, input cost fluctuations, competitive intensity and changes in government policies. Any slowdown in domestic economic activity or adverse market conditions could impact demand, sales growth and profitability.	The Company has a diversified product portfolio, extensive distribution network and strong presence across multiple domestic markets. Continuous focus on product innovation, brand building, cost optimisation and operational efficiency helps the Company respond effectively to changing market conditions. The Company also closely monitors domestic economic trends, consumer preferences and competitive developments to sustain business growth.
Market Demand Uncertainty	A persistently elevated inflation may lead to a softer demand environment in domestic as well as international markets. Softer demand creates declining sales and profitability. Similarly, performing across various segments adds complexity as the Company needs to meet evolving customer requirements and changing market dynamics. Intense pricing puts additional pressure on the situation.	The Company makes active investments in research and development to bring innovation to its product range, staying relevant to emerging market trends. Present engagement with customers and dealers, led by surveys, offers insights into evolving market conditions and preferences, enhancing timely portfolio optimisation. The Companys focus on providing quality products at competitive price points has seen strong acceptance among Indias middle-class population, strengthening its positioning as a widely accessible brand.
Raw Material Risk	Fluctuating raw material prices directly affect the Companys input cost structure. Moreover, the inability to pass on higher prices as a consequence of stiff competitive intensity can significantly impact the Companys profitability.	The Company constantly assesses alternative materials and manufacturing processes to reduce exposure to fluctuating raw material costs. Unlike some of its peers that depend predominantly on cotton, Siyaram utilises poly-viscose as a substitute fibre, providing cost-efficiency and increased durability. Input price increases are passed through to end consumers with a lag effect. It also strives to optimise its production, planning and distribution methods to make the products more accessible to price-sensitive consumers.
Shifting Trends Risk	The textile and apparel sector continuously evolves to address rapidly changing consumer preferences, presenting a risk for organisations unable to integrate quickly. Staying abreast of such shifting trends, including sustainability trends, is essential for industry players to maintain competitiveness and effectively meet customer requirements.	The Company has incorporated innovation and agility to remain relevant, adapting to evolving consumer needs and market dynamics. It offers a versatile range of products focussing on affordability, contemporary fashion trends and variety to meet the diverse requirements and aspirations of Genz and millennial customers. Moreover, the Company also closely monitors emerging trends in fashion and takes proactive decisions to remain ahead of the curve with contemporary product offerings.
Reputational Risk	The textile industry witnesses significant challenges from proliferating counterfeit products, a major concern for the Company. This issue leads to substantial losses for both the purchasers and the legitimate sellers of the original products. Apart from undermining the brands value, counterfeit products adversely affect the sentiments of authentic product buyers who pay premium prices for genuine products.	The Company is renowned for its brand reputation and is committed to preserving it. Siyarams brands enjoy high recall value and boast a robust customer base. To mitigate reputation risk, the Company educates distributors, dealers and customers on the authenticity of its products, offering guidance on distinguishing between genuine products and duplicates. Simultaneously, the Company addresses the risks of counterfeit through trademark registration, the implementation of technology solutions, and legal action against infringers of Intellectual Property Rights (IPR).

Human Resources

Siyarams acknowledges the invaluable contribution of its human resources, understanding that its workforce is the primary driver of the Companys growth. With its people-centric approach, the Company invests significantly in employee training and wellness institutes. It remains committed to reinforcing its workforce, complementing the robustness of its financial performance. Employee engagement and skill enhancement are prioritised by conducting in-house training and development programmes regularly, aimed at boosting competencies and overall productivity.

The HR policy of the Company fosters a culture of inclusion and diversity, promotes trust and transparency and a sense of teamwork among the employees to inculcate a future-ready organisation. It focusses on providing equal opportunity and competitiveness to unleash the full potential of its employees, enhancing the organisations long-term value.

The Company also promotes a workplace that is free from harassment where each employee is treated with dignity and respect. In FY26, no cases were filed under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal). During the fiscal year, Industrial relations with employees remained cordial and cooperative. As of March 31, 2026, the Companys total employee strength stood at 2,467.

Information Technology

As part of its ongoing digital transformation, the Company maintains a resilient technology infrastructure to improve competitiveness, reduce operational disruptions and adhere to an internal governance framework, focussed on enterprise efficiency. Digital tools, advanced IT systems, and transformation initiatives are deployed to streamline business operations. Owing to the integrated software system supporting key functions such as Purchasing, Production, Inventory Management, Sales and Accounting, it caters to all Strategic Business Units (SBUs).

To keep pace with evolving technology requirements, the Company has upgraded its ERP platform to SAP S/4HANA, enabling enhanced operational efficiency, real-time information access and improved decision-making capabilities.

Supported by a forward-looking IT budget and roadmap, the Company prioritises investments in data consolidation, cloud- based solutions and emerging technologies, including Machine Learning, Artificial Intelligence, Blockchain, Internet of Things and autonomous databases. Key focus areas include SAP S/4HANA- enabled ERP, EPM, treasury platforms and procurement to increase agility and decision-making.

The Company invests significantly in software solutions and systems, including Business Intelligence and Point of Sales, to further reinforce its infrastructure capabilities. Technology platforms such as Microsoft 365 for collaboration, Microsoft Azure for application housing and computing services and Criteos commerce media solutions support IT-led insights and digital marketing. Similarly, it incorporates mechanisms to maintain necessary checks and controls to improve data reliability and accuracy, and to disseminate actionable insights.

Sustainability through Green Energy

The Company continues to strengthen its commitment to sustainable operations and reduce its carbon footprint through increased adoption of renewable energy and energy-efficient practices. During the year, the Company:

• Expanded Renewable Energy Capacity: Installed 1,400 kWp of rooftop solar capacity, increasing its total installed solar capacity to 6,792 kWp across its manufacturing facilities.

• Enhanced Energy Efficiency: Improved energy efficiency by upgrading facility infrastructure, including the adoption of LED lighting and high-efficiency motors to reduce overall energy consumption.

Corporate Social Responsibility

The Siyaram recognises its responsibilities to perform the role of corporate citizen and remains committed to creating a positive impact on the environment and society in which it operates. With its sustainable business practices and responsible investments, the Company operates in an environmentally conscious and ethical manner. Parallelly, it supports community development through meaningful initiatives to build a sustainable future. Its CSR efforts are concentrated on priority areas such as healthcare, education, disease prevention and treatment, environmental sustainability and safety.

CSR initiatives undertaken in 2025-2026

During FY26, the Company undertook several CSR initiatives focussed on social and community development. It supported the Blind Cricket Tournament 2026 in Mumbai, promoting inclusivity in sports and community participation. The Company has made a CSR Contribution to RVG Foundation on their Ongoing project of construction of Hostels for CA Students. In line with its environmental commitment, initiatives were organised on World Environment Day at Tarapur to promote awareness and sustainability practices. Additionally, the Company contributed for construction of Neurology department at Shree Lallubhai Sheth Arogya Mandir, Savarkundra, Gujarat, reflecting its continued focus on improving healthcare infrastructure and access.

Cautionary Statement

The Management Discussion and Analysis may contain some statements related to the companys goals, estimates, expectations and projections which may be qualified as forwardlooking statements under applicable laws and regulations. Actual results may differ substantially from these statements due to multiple uncertainties and risks, including raw material availability and costs, market demand fluctuations, regulatory and tax changes, economic conditions, competitive dynamics in India and global markets, exchange rate volatilities and other statutes and incidental factors, influencing the Companys financial and business performance. The company disclaims any obligation to update, revise or modify these forward-looking statements, whether as a result of any subsequent developments, future events, new information or otherwise.

Internal Control Systems

Siyaram establishes a comprehensive control framework, aligned with the nature and scale of its operations. This framework is aimed at safeguarding assets, supporting the identification and mitigation of business risks, ensuring accurate financial records, assessing the effectiveness of financial controls and complying with applicable laws and regulations.

The statutory and internal auditors of the Company undertake audits across functions in detail, covering areas such as taxation, corporate finance, financial reporting, business continuity and insolvency. The Audit Committee periodically reviews and assesses management procedures, financial systems and internal controls to ensure operational efficiency, mitigate risk exposures, and prohibit fraud and misrepresentation. Internal and statutory audit findings are carried out through timely corrective measures to increase the managements adherence to regulatory standards.