SVP Global Textiles Ltd Management Discussions

This report covers the operations and financial performance of the Company for the year ended 31st March, 2026 and forms a part of the Directors Report.

The statements in this Management Discussion and Analysis Report describing the Companys objectives, expectations, estimates and projections may constitute forward-looking statements. Such statements are based on certain assumptions and expectations of future events and are subject to various risks and uncertainties. Actual results may differ materially from those expressed or implied in such statements.

Business & Performance Overview:

SVP Global Textiles Limited ("the Company") is engaged in the textile business, primarily in the cotton yarn segment.

During the financial year 2025-26, the manufacturing operations of the Company remained non-operational and no manufacturing activity was carried out at the Companys plant during the year. Accordingly, the Company did not generate turnover from manufacturing operations during the year.

The Company continues to monitor developments in the textile industry and evaluate opportunities and appropriate measures for revival and optimisation of its operations, subject to prevailing business, financial, market and other relevant conditions.

The financial statements of the Company have been prepared in accordance with the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules, 2015 and other applicable accounting principles and practices.

The summarized standalone financial performance is as under:

The summarized standalone financial performance is as under:

Particulars	F.Y. 2025 -26	F.Y. 2024 -25
	(Amount Rs. in lakhs)	(Amount Rs. in lakhs)
Total Turnover	Nil	66.87
Depreciation & Amortization	734.21	734.99
Total Expenditure	746.97	1039.19
Profit Before Tax	(746.97)	(11309.75)
Profit After Tax	(634.94)	(11333.76)
Equity Capital	1265.00	1265.00
Reserves & Surplus	(7046.04)	(6409.10)

The summarized Consolidated Financial performance is as under:

Particulars	F.Y. 2025 - 26	F.Y. 2025 - 26
	(Amount Rs. In Lakh)	(Amount Rs. In Lakh )
Total Turnover	508.75	9296.79
Depreciation & Amortization	10694.37	10521.24
Total Expenditure	32294.25	78225.11
Profit Before Tax	4451.55	(97929.77)
Profit After Tax	4561.58	(97953.79)
Equity Capital	1265.00	1265.00
Reserves & Surplus	(103311)	(113443)

The Management accepts responsibility for the integrity and objectivity of these statements as well as for the various estimates & judgments used therein.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS ALONG WITH DETAILS EXPLANATIONS

Ratios	2025-26	2024-25	% Change
Debtors Turnover	-	-	-
Inventory Turnover	-	-	-
Interest Coverage Ratio	-	-	-
Current Ratio	2.23	2.22	0.38
Debt Equity Ratio	(2.57)	(2.89)	(11.38)
Operating Profit Margin (%)	-	-	-
Net Profit Margin (%)	-	(17.79	-
Return on Net Worth (%)	11.02	(220.32)	(94.99)

Industry Structure and Developments:

The textile industry continued to operate in a challenging and evolving global environment during FY 2025-26. The sector was impacted by geopolitical uncertainties, changing trade policies, fluctuating raw material prices, subdued demand in certain international markets and increasing emphasis on sustainability and traceability across the textile value chain.

At the same time, the industry is witnessing structural opportunities arising from diversification of global supply chains, increasing preference for sustainable and responsibly manufactured textile products, technological advancement, automation and digitalisation. Consumers and global buyers are increasingly focusing on product quality, sustainability, responsible sourcing and environmental standards.

India continues to remain an important participant in the global textile and apparel value chain, supported by its large domestic market, availability of raw materials, skilled manpower and established textile ecosystem. The continuing diversification of global sourcing away from concentrated supply chains also presents opportunities for Indian textile manufacturers.

Government initiatives, including the Production Linked Incentive (PLI) Scheme, PM MITRA and other policy measures aimed at strengthening the textile value chain, are expected to support investments, competitiveness and long-term growth of the Indian textile sector.

The textile industry broadly comprises the organised and unorganised segments. The organised sector includes spinning, weaving, processing, apparel and other modern textile activities, while the unorganised sector includes handloom, handicrafts and other traditional activities. The industry continues to evolve towards greater efficiency, technology adoption, sustainability and value addition.

Global Economy

The global economy continued to face considerable uncertainty during FY 2025-26 on account of geopolitical tensions, trade- policy developments, elevated public debt, commodity-price movements and changing financial conditions. According to the International Monetary Funds April 2026 World Economic Outlook, global growth is projected at around 3.1% in 2026, reflecting the resilience of global economic activity but also highlighting the continuing downside risks arising from geopolitical developments and trade fragmentation.

The global economic environment remains subject to risks arising from persistent inflationary pressures, changing interest-rate expectations, commodity-price volatility and disruptions to international trade and supply chains. Against this backdrop, businesses across sectors are increasingly focusing on resilience, cost optimisation, diversification of sourcing and markets, and efficient capital allocation.

For the textile industry, global economic conditions directly influence consumer spending, apparel demand, raw material prices, freight costs and international trade flows. Accordingly, industry participants are required to remain responsive to changes in global demand and policy conditions.

Outlook

The outlook for the global economy remains cautiously positive, although uncertainties continue to prevail.

The resilience of domestic demand in several economies, technological developments and gradual normalisation of supply chains provide support to global economic activity. However, geopolitical tensions, trade restrictions, commodity-price volatility and inflationary pressures remain important factors that could affect the pace of recovery.

For the textile industry, the medium- to long-term outlook remains supported by the gradual diversification of global supply chains, increasing demand for sustainable products and technological advancement. The Company will continue to monitor developments in the domestic and international textile markets and evaluate opportunities in line with its business requirements and prevailing market conditions.

Indian Economy

The Indian economy continued to demonstrate resilience during FY 2025-26 despite the challenging global environment. Strong domestic demand, continued public and private investment, infrastructure development, digitalisation and structural reforms have supported economic activity.

Indias relatively strong domestic fundamentals provide a favourable foundation for long-term economic growth. Continued policy support for manufacturing, infrastructure, exports and investment is expected to strengthen Indias position in global supply chains.

The textile sector remains an important component of Indias manufacturing and export ecosystem. The countrys integrated textile value chain, availability of cotton and other raw materials, large domestic market and growing manufacturing capabilities provide a strong base for future sectoral growth.

Indian Textile Industry

India has a well-established textile and apparel ecosystem covering the entire value chain, from fibre and yarn to fabrics, processing, garments and made-ups. The sector continues to be an important source of employment and export earnings.

The Indian textile industry is undergoing a gradual transformation with greater focus on value addition, technical textiles, sustainability, modernisation, automation and integration with global supply chains. Increasing demand for sustainable and traceable products is also encouraging industry participants to adopt more efficient and environmentally responsible practices.

The diversification of global sourcing and the "China Plus One" strategy followed by international buyers provide opportunities for India to increase its participation in global textile and apparel supply chains. However, competitiveness will continue to depend upon cost efficiency, product quality, productivity, delivery capabilities and compliance with international standards.

World Cotton Outlook

Cotton remains one of the principal natural fibres supporting the global textile industry.

The global cotton market during 2025-26 was influenced by production conditions, weather patterns, global mill consumption, international trade and inventory levels.

According to the United States Department of Agriculture (USDA), global cotton production for 2025-26 was projected at approximately 121 million bales, while global cotton mill use was expected to remain strong. India remained one of the worlds major cotton-producing and consuming countries.

The cotton market continues to be influenced by weather conditions, acreage, yields, farmer realisations, international demand, currency movements and competing fibres. The Company will continue to monitor developments in cotton prices and availability as these factors have a direct bearing on the economics of the textile value chain.

Indian Cotton Outlook

India remains one of the leading producers and consumers of cotton globally. The domestic cotton market during FY 2025-26 continued to be influenced by crop arrivals, domestic consumption, export demand, international cotton prices and weather conditions.

According to USDAs March 2026 outlook, Indias cotton production for the 2025-26 season was projected at approximately 23.5 million bales, with improvement in yield partially offsetting a decline in harvested area.

The outlook for Indian cotton remains dependent on monsoon conditions, crop yields, domestic mill consumption, exports, global cotton prices and government policies. Stable cotton availability and efficient procurement remain important factors for the competitiveness of Indias spinning and textile industry.

Opportunities

Diversification of Global Supply Chains

The continuing diversification of global sourcing presents an opportunity for India to strengthen its position in the international textile and apparel market. Global buyers are increasingly seeking diversified and resilient supply chains, providing opportunities for Indian manufacturers with competitive costs, quality products and reliable delivery capabilities.

Sustainable Manufacturing

Growing global emphasis on environmental sustainability, responsible sourcing, recycling and resource efficiency is creating opportunities for textile companies to adopt sustainable manufacturing practices and develop environmentally responsible products.

Government Policy Support

Government initiatives aimed at strengthening the textile value chain, promoting investment, enhancing manufacturing capabilities and increasing exports provide opportunities for the sector. Schemes such as PLI and PM MITRA are intended to support investment, scale and competitiveness across relevant segments.

Technology and Digitalisation

Automation, advanced manufacturing technologies, artificial intelligence, digital supply-chain management and data-driven quality control are increasingly transforming the textile industry. Adoption of appropriate technologies can improve productivity, quality, resource efficiency and cost competitiveness.

Free Trade Agreements and Export Opportunities

Indias trade engagements and Free Trade Agreements can provide greater market access for Indian textile and apparel products. Expansion into new geographical markets and diversification of the export base may provide additional opportunities for the sector.

Threats and Challenges

Intensified Global Competition

Indian textile manufacturers face strong competition from major textile-producing countries such as China, Bangladesh, Vietnam, Pakistan and other emerging manufacturing destinations. Maintaining competitiveness will require continued focus on productivity, quality, cost efficiency and timely delivery.

Volatility in Raw Material Prices

Cotton and other textile raw material prices remain subject to fluctuations arising from weather conditions, crop production, international demand, currency movements and global supply- demand conditions. Such volatility can adversely affect margins and working-capital requirements.

Geopolitical and Trade-related Risks

Changes in trade policies, tariffs, sanctions, geopolitical tensions and disruptions in international logistics can affect global textile trade, freight costs and market access.

Macroeconomic Uncertainty

Inflationary pressures, interest rates, currency fluctuations and variations in consumer demand may impact textile consumption and industry profitability. These factors may result in uncertainty in order flows and pricing.

Increasing Compliance and Sustainability Requirements

Global buyers are increasingly imposing stringent requirements relating to sustainability, traceability, environmental standards, labour practices and product compliance. Meeting such requirements may require continued investment and operational adaptation.

Internal Control Systems

The Company has an appropriate internal control framework commensurate with its size and nature of operations. The internal control system is designed to safeguard assets, ensure compliance with applicable laws and regulations, maintain proper accounting records and support the reliability of financial reporting.

The Companys internal audit function periodically reviews the adequacy and effectiveness of internal controls. The Audit Committee reviews the reports and observations of the internal auditors and monitors the implementation of corrective measures, wherever required. The management also maintains appropriate interaction with the statutory and internal auditors to strengthen the effectiveness of the internal control framework.

Material Developments in Human Resources / Industrial Relations

Human resources remain an important component of the Companys organisational framework. The Company continues to focus on maintaining an appropriate workforce, employee development, training and skill enhancement, wherever applicable.

During FY 2025-26, the Companys manufacturing operations remained non-operational and no manufacturing activity was carried out at the plant. Accordingly, employee and human- resource requirements were managed in accordance with the Companys operational needs during the year.

The Company continues to recognise the importance of maintaining an appropriate and capable workforce and will undertake necessary measures in relation to employee development and organisational requirements as its operations evolve.

Health and Safety Measures

The Company remains committed to maintaining appropriate health, safety and welfare standards for its employees.

As there was no manufacturing activity at the Companys plant during FY 2025-26, normal plant-level manufacturing operations and associated occupational safety activities were not carried out during the year. The Company nevertheless continues to maintain appropriate measures for the safety and welfare of its employees and will implement necessary health and safety measures commensurate with its operations when manufacturing activities resume.

Cautionary Statement

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may constitute forward-looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied.

Important factors that could cause actual results to differ materially include changes in domestic and global economic conditions, demand and supply conditions, raw material prices, finished goods prices, availability of finance, foreign exchange fluctuations, changes in Government policies and regulations, taxation, interest rates, geopolitical developments, litigation, labour conditions and other risks and uncertainties affecting the Companys business.

The Company assumes no responsibility for the accuracy or completeness of such forward-looking statements, which are subject to change based on subsequent developments, information or events.