Super Sales India Ltd Management Discussions

REPORT ECONOMY OVERVIEW:

Growth in 2025 and outlook for 2026

Global economic growth of 3.4 percent in 2025-26 was supported by easing inflation, resilient labour markets, a recovery in global trade and robust domestic demand across emerging economies. This momentum was further reinforced by supportive fiscal policies, continued infrastructure investments and improving supply chain conditions, even as geopolitical tensions and trade uncertainties persisted.

Prior to the outbreak of the conflict, baseline projections pointed to a stable growth trajectory. Global growth was expected to remain at 3.4 percent in 2026 and moderate slightly to 3.2 percent in 2027.

However, under the reference scenario assuming the conflict is relatively short-lived, global growth is projected to soften modestly. Growth is now expected to ease to 3.1 percent in 2026 before stabilising at 3.2 percent in 2027, indicating a mild deceleration from the estimated 3.4 percent recorded in 2025.

Advanced Economies

Growth in advanced economies is estimated at 1.9 percent in 2025, led by the United States at 2.0 percent, followed by the Euro area at 1.2 percent, Japan at 0.5 percent and other advanced economies at 4.1 percent. Looking ahead, growth across advanced economies is projected to moderate slightly to 1.8 percent in 2026 and 1.7 percent in 2027. The impact of the Middle East conflict on overall growth in these economies is expected to be limited, reducing growth by around 0.2 percentage point in 2026.

In the United States, the economy is projected to expand by 2.3 percent in 2026, with growth supported by fiscal policy and the lagged impact of monetary policy rate cuts in 2025, even as the rise in trade barriers since April 2025 continues to weigh on the level of activity.

In the Euro area, growth is projected to ease from 1.4 percent in 2025 to 1.1 percent in 2026, before marginally rising to 1.2 percent in 2027. The outlook has been revised down by 0.2 percentage point for both years compared to earlier update, reflecting the adverse impact of the Middle East conflict, persistent high energy prices following Russias invasion of Ukraine and the euros real appreciation, all of which continue to weigh on manufacturing and export competitiveness.

Emerging and Developing Economies

Estimated Growth of Emerging and developing economies in 2025 at 4.4 percent with Emerging & developing Asia at 5.5 percent, with China at 5.0 percent, India at 7.6 percent, Emerging & Developing Europe at 2.0 percent.

It is projected that growth under the reference may drop to 3.9 percent in 2026 and 4.2 percent in 2027. The conflict in the Middle East has a varied impact on growth given differential exposure·through geographic proximity, financial flows, remittances and energy dependencies. Overall, it has a larger net impact on growth in emerging market and developing economies compared with advanced economies.

Indias Economic Outlook

Real GDP growth is estimated at 7.6 percent in 2025-26, up from 7.1 percent in 2024-25, reflecting strong economic resilience supported by favourable carryover effects and a reduction in U.S. tariffs on Indian goods. Growth has been driven largely by manufacturing, which recorded double-digit expansion, alongside robust performance in services - particularly trade, transport, hospitality and communication - indicating sustained recovery in consumption.

Prudent fiscal management has strengthened Indias macroeconomic position. The Centres revenue receipts have improved, supported by higher direct tax collections and an expanded tax base, while steady growth in indirect taxes reflects better compliance and ongoing formalisation. At the same time, sustained emphasis on capital expenditure and infrastructure investment has remained a key driver of demand and growth.

Growth is projected to 6.6 percent in 2026 from 7.6 percent, primarily due to normalization following a high base, weaker global conditions and the lagged effects of earlier monetary tightening. External uncertainties including geopolitical tensions and evolving trade restrictions may weigh on sentiment and trade.

Private consumption is expected to stabilise as pent-up demand fades, while investment growth may moderate amid fiscal consolidation and global uncertainties. Nonetheless, underlying fundamentals remain strong which may helpful for sustaining Indias medium-term growth outlook.

Overall, while growth is expected to moderate to 6.6 percent in 2026, the underlying economic fundamentals remain resilient, supported by stable macroeconomic conditions, controlled inflation and a balanced policy approach, thereby sustaining the medium-term growth trajectory.

SEGMENT WISE PERFORMANCE:

Agency Division

Agency Division recorded marginal growth in both topline and bottom-line performance during the year, primarily due to the continued slowdown in the textile industry. Business sentiment remained subdued as customers adopted a cautious approach towards capital expenditure and new machinery investments, resulting in slower order conversions. In addition, a temporary impact of tariff rate revisions, the prevailing global geopolitical uncertainties and war-related developments continued to cast a cautious outlook on the industry. Nevertheless, selective investments in capital machinery continued at a gradual pace, supporting steady business continuity for the division.

The Division has earned a revenue of Rs. 1801.10 Lakhs as against Rs. 1745.73 Lakhs and PBIT of Rs. 803.79 Lakhs as against Rs. 787.61 Lakhs in the previous year.

Textile Division

The Yarn Division recorded modest growth in revenue during the year; however, profitability improved significantly owing to better operational performance and focused cost optimization initiatives. The division continued to rely on high-quality imported cotton to ensure consistency in yarn quality and meet customer requirements, as the quality of locally available cotton was not found to be fully suitable for the desired product standards, despite stable domestic cotton prices. The Governments extension of customs duty exemption on imported cotton up to December 2025 provided support in maintaining cost competitiveness. During the year, changes in tariff rates had a temporary impact on margins, though the situation subsequently stabilized. Supported by various internal measures aimed at enhancing productivity, process efficiency and operational discipline, the division achieved a notable improvement in bottom-line performance despite relatively muted topline growth.

The division has earned a revenue of Rs. 33581.33 Lakhs as against Rs. 33257.19 Lakhs in the previous year.

The Division has earned a PBIT of Rs.1027.72 Lakhs as against Rs. 126.39 Lakhs in the previous year. Engineering Division

The Engineering Division recorded only modest topline growth during the year, including contributions from OEM business. The overall performance was impacted by slower market off-take and postponement of delivery schedules by customers, which affected revenue recognition during the period. Despite these challenges, the division maintained stable operations and continued to service customer requirements effectively.

The Division has an earned revenue of Rs. 6491.31 Lakhs as against Rs. 6061.74 Lakhs in the previous year.

The Division has earned a PBIT of Rs.137.82 Lakhs as against a loss of Rs.157.25 Lakhs in the Previous Year.

EXPORTS

Despite the impact of geopolitical uncertainties and tariff rate changes on global trade, the Companys direct export business registered encouraging growth during the year. The improvement was driven by the Companys consistent supply of quality products, timely deliveries and continued repeat orders from overseas customers, reflecting sustained customer confidence and strong business relationships.

Your company has exported yarn of Rs. 6487.23 Lakhs (out of which Rs. 2327.28 Lakhs were for merchant Exports) and Gears Division exports for the year under review was Rs. 208.54 Lakhs.

PROSPECTS

Agency Division:

The outlook for textile spinning machinery marketing and sales remains positive, supported by the governments continued focus on textile modernization, PM MITRA parks, PLI incentives and expansion of technical textiles. Recent tariff and import policy relaxations will expect to encourage fresh investments and capacity expansion by spinning mills, particularly in modernization.

Textile Division:

The outlook for the textile spinning industry remains promising, driven by domestic demand, rising export opportunities and supportive government policies. Recent tariff rationalisation & export incentives enhance the global competitiveness of Indian yarn manufacturers.

Engineering Division:

The gearbox manufacturing industry is expected to witness steady growth over the next few years, driven by increased government spending on infrastructure, industrial expansion and renewable energy projects. Rising demand from sectors such as construction, cement, power and mining, along with continued focus on domestic manufacturing and automation, is expected to support healthy capacity utilization and sustainable business growth

OPPORTUNITIES AND THREATS:

Opportunities:

1. Infrastructure growth & PSU growth in India will fetch more opportunities to engineering division.

2. Foreign Trade Agreements made will improve Textiles and Apparels sector, thereby textile mills will be benefitted.

3. Modernization and automation are the need of the day to excel in quality and cost reduction, foresee a better order book and schedules in Agency Division.

4. More investments in Renewable Energy will reduce operational cost and improve life of mechatronics in the machineries.

Threats:

1. War Linked Global scenario, will have an impact of the input cost of materials.

2. Import duty post a threat to level playing field.

3. Higher turnout of migrant labour force, raising training cost leading to higher cost & poor work culture.

RISK AND CONCERN:

Geopolitical issues, weakening of rupee against dollar, increase in fuel prices, expect below normal rainfall due to El-Nino and availability of labour are cause of concern for the demand and margin.

INTERNAL CONTROL SYSTEM AND ADEQUACY:

The Company has an adequate internal control system commensurate with its size and nature of its business. Management has overall responsibility for the Companys internal control system to safeguard the assets and to ensure reliability of financial records.

The Company has a detailed budgetary control system and the actual performance is reviewed periodically and decision taken accordingly.

Internal audit programme covers all areas of activities and periodical reports are submitted to the Management. Audit Committee reviews all financial statements and ensures adequacy of internal control systems. The Company has a well-defined organization structure, authority levels and internal rules and guidelines for conducting business transactions.

FINANCIAL PERFORMANCE AND ANALYSIS:

(Rs. in Lakhs)

HUMAN RESOURCES:

The Companys HR objectives aim to develop and train each individual to perform to his/her fullest capacity, achieving individual excellence and Companys Goals. The shortage of man power in the Textile division has become a severe problem and efforts have been taken to mitigate the same. The number of permanent people employed was 1228.

CAUTION:

Statements in the management discussion and analysis describing the Companys objectives, projections, estimates and expectations may be considered as “forward looking statements” within the meaning of applicable securities laws and regulations. These statements are based on certain assumptions and expectations of future events. Actual results could differ materially from those expressed or implied. The factors that might influence the operations of the Company are demand-supply conditions, finished goods prices, raw material costs & availability, change in the government regulations and natural calamities over which the Company has no control.

The Company assumes no responsibility in respect of the forward-looking statements herein which may undergo changes in future on the basis of subsequent developments, information or events.