TNA Solutions Ltd Management Discussions

OF FINANCIAL CONDITION AND RESULTS OF OPERATION

The following discussion is intended to convey management’s perspective on our financial condition and results of operations for the financial year ended March 31, 2026, March 31, 2025, and March 31, 2024. One should read the following discussion of our financial condition and results of operations together with our restatedfinancial statements included in the Red Herring Prospectus. You should also read the section entitled “Risk Factors” beginning on page 20 of this Red Herring Prospectus, which discusses several factors, risks and contingencies that could affect our financial condition and results of operations. The following discussion relates to our Company and is based on our restated financial statements, which have been prepared in accordance with Indian GAAP, the Companies Act and the SEBI Regulations. Portions of the following discussion are also based on internally prepared statistical information and on other sources. Our fiscal year ends on March 31 of each year, so all references to a particular fiscal year (“Fiscal Year”) are to the twelve-month period ended March 31 of that year.

In this section, unless the context otherwise requires, any reference to “we”, “us” or “our” refers to TNA Solutions Limited, our Company. Unless otherwise indicated, financial information included herein are based on our “Restated Financial Statements” for the financial year ended on March 31, 2026, March 31, 2025, and March 31, 2024, included in this Red Herring Prospectus beginning on page 199

BUSINESS OVERVIEW

TNA Solutions Limited (the “Company” or “TNA”) is engaged in the manufacturing of home textile products for domestic and international customers. We manufacture a range of value-added home furnishing products including sheet sets, pillow shells and covers, towels and top-of-bed products such as comforters, mattress protectors and quilts, using greige fabric procured from weavers and finished fabric procured from mills, processing houses and stockists. Once processed fabric is received at our manufacturing facility in Indore, Madhya Pradesh, we undertake cutting, stitching, embroidery, finishing, quality assurance, packaging and dispatch of finished products. Our focused manufacturing model enables us to concentrate on product quality, manufacturing efficiency, timely delivery and customer service while leveraging the capabilities of our processing partners for fabric processing.

We operate in the value-added segment of the home textile industry by converting processed fabrics into finished home furnishing products in accordance with customer specifications. Our manufacturing capabilities, quality -control systems and product-development experience enable us to cater to domestic and international customers. We primarily manufacture products for global retailers, importers and domestic brands under our B2B manufacturing model, where products are marketed and sold under our customers’ brands or their specified labels.

Our business model is focused on the value-added stages of the home textile manufacturing process. Weaving, dyeing, printing and other wet processing of fabrics are undertaken by our textile processing partners, on greige fabric procured by us from weavers, while we retain ownership of the fabric throughout. We also procure finished fabric from mills, processing houses and stockists directly. Once processed or finished fabric is received at our facility, we carry out cutting, stitching, embroidery, finishing, quality control, packaging and dispatch. This positioning allows us to concentrate capital and management attention on manufacturing excellence, quality systems and customer relationships rather than upstream processing infrastructure.

While the substantial majority of our business is conducted on a B2B basis, we also derive revenue from B2C channels, both online through marketplaces including Flipkart and Amazon and offline through wholesalers and retailers. We launched our own brand, “Ambra Linens”, in 2022, under which we market and sell home furnishing products directly to consumers through B2C channels.

Our manufacturing facility and registered office are located at Survey No. 403/5, Sonvay, Tehsil Mhow, Rao, Indore, Madhya Pradesh - 453331. The leased facility has a total usable area of approximately 56,000 sq. ft. and is equipped with machinery and supporting infrastructure for an organised, quality-controlled manufacturing process. Our operations are supported by an in-house ERP system integrating sales order management, procurement, inventory and warehouse management, production planning, job-work tracking, quality management and management-information reporting.

Our products are sold across India and to customers in overseas jurisdictions. In Fiscal 2026, 52.03% of revenue from operations was derived from exports and 47.97% from domestic sales. Our operating performance is influenced by customer order flow, production volumes, product and geographic mix, raw-material costs, job-work capacity and pricing, freight and logistics costs, quality compliance, working-capital availability and foreign-exchange movements.

REVENUE PROFILE

Particulars	Fiscal 2026	% of revenue	Fiscal 2025	% of revenue	Fiscal 2024	% of revenue
Domestic revenue	5,017.50	47.97%	5,427.86	66.61%	3,485.19	97.21%
Export revenue	5,441.22	52.03%	2,720.74	33.39%	99.90	2.79%
Total revenue from operations	10,458.72	100.00%	8,148.60	100.00%	3,585.08	100.00%

The contribution of export revenue increased from 2.79% in Fiscal 2024 to 33.39% in Fiscal 2025 and further to 52.03% in Fiscal 2026. This reflects the increasing contribution of international markets to our revenue mix. Foreign earnings reported in the Restated Financial Information were ?5,441.22 lakhs, ?2,720.74 lakhs and ?99.90 lakhs in Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively.

Country-wise export revenue

Country	Fiscal 2026	% of revenue	Fiscal 2025	% of revenue	Fiscal 2024	% of revenue
Hong Kong	91.53	0.88%	-	-	-	-
Israel	552.83	5.29%	-	-	-	-
Italy	26.44	0.25%	-	-	-	-
Malaysia	30.05	0.29%	23.26	0.29%	-	-
Mauritius	12.20	0.12%	508.13	6.24%	-	-
Singapore	298.18	2.85%	-	-	-	-
South Africa	621.21	5.94%	1,377.10	16.90%	-	-
UAE	1,599.11	15.29%	-	-	26.29	0.73%
UK	90.29	0.86%	-	-	-	-
USA	2,119.38	20.26%	813.54	9.98%	27.18	0.76%
Australia	-	-	-	-	46.43	1.30%
Total export revenue	5,441.22	52.03%	2,720.74	33.39%	99.90	2.79%

OPERATIONAL KEY PERFORMANCE INDICATORS

The following operating indicators should be read together with the financial KPIs. Revenue by business channel

Particulars	Fiscal 2026	%	Fiscal 2025	%	Fiscal 2024	%
B2B	10,416.50	99.60%	8,141.37	99.91%	3,558.63	98.21%
B2C	42.23	0.40%	7.23	0.09%	26.46	1.79%
Revenue from operations	10,458.72	100.00%	8,148.60	100.00%	3,585.08	100.00%

B2B revenue remained the principal business channel, contributing 99.60%, 99.91% and 98.21% of revenue from operations in Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively. B2C revenue increased to ?42.23 lakhs in Fiscal 2026 from ?7.23 lakhs in Fiscal 2025, reflecting growth from a small base, but remained 0.40% of total revenue.

Installed capacity, production and utilisation - Fiscal 2026

Financial Year	Installed Capacity (Metre)	Actual Output/Production (Metre)	Idle Capacity (Metre)	Capacity Utilisation
FY 2023-24	13,10,506	9,17,354	3,93,152	70.00%
FY 2024-25	24,98,698	18,14,614	6,84,084	72.62%
FY 2025-26	52,23,386	39,17,540	13,05,846	75.00%

Customer concentration

Particulars	Fiscal 2026	% of revenue	Fiscal 2025	% of revenue	Fiscal 2024	% of revenue
Top 1 customer	2,433.30	23.27%	1,255.54	15.41%	1,303.67	36.36%
Top 5 customers	6,481.86	61.98%	5,368.24	65.88%	3,090.46	86.20%
Top 10 customers	8,766.99	83.82%	7,123.73	87.42%	3,435.81	95.84%

Customer concentration remained significant, although the contribution of the top ten customers decreased from 95.84% in Fiscal 2024 to 87.42% in Fiscal 2025 and 83.82% in Fiscal 2026. The top-customer contribution decreased from 36.36% in Fiscal 2024 to 15.41% in Fiscal 2025 before increasing to 23.27% in Fiscal 2026.

Supplier concentration

Particulars	Fiscal 2026	% of purchases	Fiscal 2025	% of purchases	Fiscal 2024	% of purchases
Top 1 supplier	1,202.14	15.67%	1,068.10	18.48%	1,565.19	40.41%
Top 5 suppliers	3,993.68	52.06%	2,453.44	42.44%	2,929.49	75.63%
Top 10 suppliers	5,862.62	76.41%	3,368.21	58.26%	3,648.72	94.21%
Total purchases	7,672.77	100.00%	5,781.03	100.00%	3,872.98	100.00%

Supplier concentration decreased materially from Fiscal 2024 levels. The contribution of the top 1 supplier decreased to 15.67% in Fiscal 2026 from 40.41% in Fiscal 2024, while the contribution of the top ten suppliers decreased to 76.41% from 94.21%. However, the top-ten concentration increased from 58.26% in Fiscal 2025 to 76.41% in Fiscal 2026.

Other operating indicators

Indicator	Reported position
Manufacturing facility area	Approximately 56,000 sq. ft.
Plant and machinery	186 machines/equipment items
Employees as of July 31, 2026	193 on payroll and 66 contractual; total 259
Export footprint in Fiscal 2026	Ten overseas jurisdictions
Quality and compliance	OEKO-TEX Standard 100, GOTS-Scope, SCAN compliant and Organic Compliant Walmart Approved
ERP modules	Sales orders, procurement, inventory and warehouse, production planning, job work, quality management and MIS/reporting

KEY FINANCIAL PERFORMANCE INDICATORS

Particulars	Fiscal 2026	Fiscal 2025	Fiscal 2024
Revenue from operations	10,458.72	8,148.60	3,585.08
Total income	11,044.57	8,412.68	3,631.50
EBITDA	1,267.96	1,026.39	513.05
EBITDA margin (on revenue from operations)	12.12%	12.60%	14.31%
Profit before tax	1,288.65	937.68	413.89
Profit after tax	958.35	665.80	268.74
PAT margin	9.16%	8.17%	7.50%
Net worth	3,593.98	2,285.64	498.35
Debt-equity ratio	1.29	1.13	2.29
Current ratio	1.63	1.63	1.28
Return on net worth	26.67%	29.13%	53.93%
Return on capital employed	42.84%	51.65%	89.40%

Notes:

• EBITDA has been computed as profit before tax plus depreciation and amortisation expenses plus finance costs less other income.

• EBITDA margin is EBITDA divided by revenue from operations; PAT margin is profit after tax divided by revenue from operations.

• Debt-equity ratio, current ratio, return on net worth and return on capital employed are based on the definitions and amounts contained in the Restated Financial Information.

• Fiscal 2024 includes the period in which the erstwhile LLP was converted into a public limited company. Accordingly, ratios and certain year-on-year comparisons are affected by the change in legal status, capital structure and period- specific restatement adjustments.

The following significant accounting policies have been reproduced from Annexure 4 to the Restated Financial Information. They should be aligned with the final signed Restated Financial Information before filing.

Company overview and description

The Company was incorporated on June 23, 2024 and has its registered office at Survey No. 403/5, Sonvay, Tehsil Mhow, Rao, Indore, Madhya Pradesh, India - 453331, bearing Corporate Identification Number U46410MP2024PLC071835. Previously, the business was operated as a limited liability partnership named TNA Solutions LLP, registered under the Limited Liability Partnership Act, 2008. TNA Solutions LLP was established on September 17, 2021 by Ambuj Jain and Tanu Jain. TNA Solutions Limited is engaged in the manufacture of home furnishing products, including bed sheets, mattress protectors, pillow covers, towels and related items.

Basis of preparation

The summary statement of restated assets and liabilities of the Company as at March 31, 2026, March 31, 2025 and March 31, 2024 and the related summary statements of restated profit and loss and cash flows for the periods April 1, 2025 to March 31, 2026, April 1, 2024 to March 31, 2025 and April 1, 2023 to March 31, 2024 (collectively referred to as the “Restated Summary Financial Information”) have been prepared specifically for inclusion in the offer document to be filed by the Company in connection with the proposed initial public offering. The Restated Summary Financial Information has been prepared by applying necessary adjustments to the financial statements of the Company. The financial statements have been prepared in accordance with generally accepted accounting principles in India (“Indian GAAP”), the accounting standards specified under Section 133 of the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014, the relevant provisions of the Companies Act, 2013, as applicable, and the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended. The financial statements have been prepared on the accrual basis under the historical-cost convention. The accounting policies adopted in their preparation have been consistently applied.

Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported balances of assets and liabilities, disclosures relating to contingent assets and liabilities as at the date of the financial statements and reported amounts of income and expenses during the year. Examples include provisions for doubtful debts, income taxes, post-sales customer support and the useful lives of property, plant and equipment and intangible assets.

(i) Revenue recognition

The Company derives its revenue primarily from manufacturing and supplying items such as bed sheets, mattress protectors, pillow covers and towels. Revenue is recognised to the extent that it is probable that economic benefits will flow to the Company and the revenue can be measured reliably in accordance with Accounting Standard 9, “Revenue Recognition”. Sales are recognised on an accrual basis after transfer of goods to the customer.

(ii) Other income

Other items of income and expenditure are recognised on an accrual basis and on a going-concern basis. The accounting policies are consistent with generally accepted accounting principles.

(iii) Property, plant and equipment and intangible assets

Property, plant and equipment are stated at cost less accumulated depreciation. Cost includes acquisition cost, including material cost, freight, installation cost, duties and taxes, and other incidental expenses incurred up to the installation stage and related to such acquisition.

Intangible assets acquired by the Company are initially measured at cost. After initial recognition, an intangible asset is carried at cost less accumulated amortisation and accumulated impairment losses, if any.

(iv) Depreciation and amortisation

The Company applies the estimated useful lives specified in Schedule II to the Companies Act, 2013 and calculates depreciation using the written-down-value method. Depreciation on new assets acquired during the year is provided at the applicable rates from the date of acquisition to the end of the financial year. For assets sold during the year, depreciation is provided from the beginning of the year to the date of disposal.

Intangible assets are amortised using the written-down-value method over their estimated useful lives as specified in Schedule II to the Companies Act, 2013. Amortisation expense on intangible assets with finite lives is recognised in the statement of profit and loss. For intangible assets sold during the year, amortisation is provided from the beginning of the year to the date of disposal.

Category	Useful life
Computer and laptop	3 years
Furniture and fittings	10 years
Office equipment	5 years
Plant and machinery	15 years
Mobile phone	5 years
Vehicles	8 years
Factory building	30 years

(v) Impairment of assets

Management periodically assesses, using external and internal sources, whether there is an indication that an asset may be impaired. An impairment loss is recognised wherever the carrying value of an asset exceeds its recoverable amount. The recoverable amount is the higher of the asset’s net selling price and value in use, which is the present value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. Reversal of an impairment loss is recognised immediately as income in the statement of profit and loss.

(vi) Investments

Investments are classified as current or non-current based on management’s intention at the time of purchase. Current investments are carried at the lower of cost and fair value, determined individually. Long-term investments are carried at cost less a provision recognised for any decline, other than temporary, in the carrying value of each investment.

(vii) Employee benefits

The Company provides various benefit plans to employees, categorised as defined-benefit plans and defined-contribution plans. Defined-contribution plans include amounts paid by the Company toward provident fund liabilities to the Employees’ Provident Fund Organisation and contributions to the Employees’ State Insurance fund. Defined-benefit plans include retirement benefits. Benefits payable are valued based on an actuarial valuation report. An employee who has completed five years of service is entitled to the specified benefit. The level of benefit depends on the employee’s length of service and salary at retirement age. For details, refer to Annexure 45 to the Restated Financial Information.

Liabilities for short-term employee benefits are measured at the undiscounted amount of benefits expected to be paid and charged to the statement of profit and loss in the year in which the related service is rendered.

(viii) Taxes on income

Income-tax expense is accounted for in accordance with Accounting Standard 22, “Accounting for Taxes on Income”, for current tax and deferred tax.

Current tax. Provision for current tax is made in accordance with the provisions of the Income-tax Act, 1961.

Deferred tax. Deferred tax is recognised, subject to consideration of prudence, as the tax effect of timing differences between taxable income and accounting income computed for the current accounting year using tax rates and tax laws enacted or substantively enacted by the balance-sheet date. Deferred-tax assets are recognised and carried forward to the extent that there is reasonable certainty, except for assets arising from unabsorbed depreciation and carried-forward losses, that sufficient future taxable income will be available against which the deferred-tax assets can be realised.

(ix) Provisions and contingent liabilities

A provision is recognised if, as a result of a past event, the Company has a present legal obligation that can be estimated reliably and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined using the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, disclosure is made as a contingent liability. A contingent liability is also disclosed when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or present obligation for which the likelihood of outflow of resources is remote, no provision or disclosure is made.

(x) Earnings per share

Basic earnings per share is computed by dividing net profit after tax by the weighted-average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing net profit after tax by the weighted-average number of shares considered for basic earnings per share and the weighted-average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. Dilutive potential equity shares are adjusted for proceeds receivable had the shares been issued at fair value, being the average market value of the outstanding shares. Dilutive potential equity shares are deemed converted at the beginning of the period unless issued later and are determined independently for each period presented.

(xi) Operating leases

Leases under which the lessor effectively retains substantially all risks and benefits of ownership are classified as operating leases. Operating-lease payments are recognised as an expense in the statement of profit and loss on a straight-line basis.

(xii) Cash and cash equivalents

Cash and cash equivalents comprise cash and deposits with banks. The Company considers highly liquid investments with an original maturity of three months or less from the date of purchase that are readily convertible into known amounts of cash to be cash equivalents. Other bank deposits represent investments with an original maturity between three months and twelve months.

(xiii) Foreign-currency transactions

Foreign-exchange transactions during the year are recorded at the exchange rates prevailing on the transaction dates. Gains or losses arising from fluctuations in exchange rates between the transaction date and settlement date in respect of revenue are recognised in the statement of profit and loss. Foreign-currency-denominated monetary assets and liabilities are translated at exchange rates prevailing on the balance-sheet date, and resulting exchange differences are recognised in the statement of profit and loss for the year.

(xiv) Inventories

Raw materials, components and other stock are valued at the lower of cost, determined using the FIFO method and net of CENVAT and GST wherever applicable, and net realisable value. Finished products, including traded goods, and work-inprocess are valued at the lower of cost and net realisable value. Cost includes all expenses incurred on materials to bring them to their present location and condition.

(xv) Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, being assets that necessarily take a substantial period of time to become ready for their intended use, are capitalised. Income earned from temporary investment of specific borrowings pending expenditure on qualifying assets is deducted from borrowing costs eligible for capitalisation. All other borrowing costs are recognised in the statement of profit and loss in the period in which they are incurred.

FACTORS AFFECTING OUR RESULTS OF OPERATIONS

• Our results of operations and financial condition are affected by a number of factors, including the following:

• demand for home textile and home furnishing products in domestic and export markets;

• our ability to maintain and expand relationships with customers and acquire new customers;

• changes in our domestic and export sales mix, product mix, sales volumes and price realisation;

• availability and prices of fabrics, packing materials and other inputs;

• availability, capacity, quality and pricing of job-work and processing vendors;

• freight, clearing and forwarding costs and the reliability of logistics arrangements;

• foreign-exchange rate movements and our ability to manage currency exposure;

• availability and cost of working-capital facilities, including bank and non-bank borrowings;

• our ability to manage inventories, receivables, payables and cash flows as our business expands;

• changes in government policies, duties, export incentives, duty drawback and taxation;

• competition, customer preferences and quality, testing and compliance requirements;

• our ability to retain directors, key managerial personnel and skilled employees; and

• general economic, political, regulatory and other conditions in India and overseas markets.

DISCUSSION ON RESULTS OF OPERATIONS

The following table sets forth selected items from our Restated Statement of Profit and Loss for the periods indicated, together with each item as a percentage of total income.

Particulars	FY26	% of Total Income	FY25	% of Total Income	FY24	% of Total Income
Revenue from operations	10,458.72	94.70%	8,148.60	96.86%	3,585.08	98.72%
Other income	585.85	5.30%	264.08	3.14%	46.42	1.28%
Total income	11,044.57	100.00%	8,412.68	100.00%	3,631.50	100.00%
Cost of goods sold	6,531.22	59.14%	5,168.83	61.44%	2,295.67	63.22%
Employee benefit expenses	621.74	5.63%	546.04	6.49%	229.81	6.33%
Finance costs	495.12	4.48%	316.28	3.76%	124.24	3.42%
Depreciation and amortisation	70.04	0.63%	36.51	0.43%	21.34	0.59%
Other expenses	2,037.80	18.45%	1,407.33	16.73%	546.55	15.05%
Total expenditure	9,755.92	88.33%	7,475.00	88.85%	3,217.61	88.60%
Profit before tax	1,288.65	11.67%	937.68	11.15%	413.89	11.40%
Current tax	310.74	2.81%	272.87	3.24%	149.79	4.12%
Deferred tax	19.56	0.18%	(0.98)	(0.01%)	(4.64)	(0.13%)
Total tax expense	330.30	2.99%	271.88	3.23%	145.15	4.00%
Profit after tax	958.35	8.68%	665.80	7.91%	268.74	7.40%

Principal Components of Income and Expenditure

Revenue from operations. Revenue from operations primarily consists of domestic and export sales of home textile and home furnishing products and commission or consultancy income, where applicable.

Other income.

Other income primarily includes duty drawback, commission income, foreign-exchange fluctuation gains, interest income, subsidy, discounts received and miscellaneous income.

Cost of goods sold.

Cost of goods sold comprises cost of material consumed together with changes in inventories of finished goods. Presenting the two components together shows the aggregate product cost recognised for goods sold during the period.

Employee benefit expenses.

Employee benefit expenses include salaries and wages, remuneration to directors or partners, employer contributions to statutory funds, gratuity and staff welfare expenses.

Finance costs.

Finance costs comprise bank charges and interest and finance charges on working-capital and other borrowing facilities.

Depreciation and amortisation.

These expenses comprise depreciation on property, plant and equipment and amortisation of intangible assets.

Other expenses.

Other expenses mainly include job-work expenses, freight and cartage, trade commission and discounts, factory and warehouse rent, legal and professional fees, business promotion, clearing and forwarding, testing and inspection and other operating and administrative expenses.

FISCAL 2026 COMPARED WITH FISCAL 2025

Total income increased by 31.28% to ?11,044.57 lakhs in Fiscal 2026 from ?8,412.68 lakhs in Fiscal 2025, primarily due to growth in revenue from operations and other income.

Revenue from operations

Revenue from operations increased by ?2,310.12 lakhs, or 28.35%, to ?10,458.72 lakhs from ?8,148.60 lakhs. Export revenue increased by ?2,720.48 lakhs, or 99.99%, to ?5,441.22 lakhs from ?2,720.74 lakhs, increasing its contribution to revenue from 33.39% to 52.03%. This growth was partly offset by domestic revenue decreasing by ?410.36 lakhs, or 7.56%, to ?5,017.50 lakhs from ?5,427.86 lakhs. Accordingly, the entire net increase in revenue was attributable to the expansion in export sales, while the revenue mix shifted materially toward international markets.

Other income

Other income increased by ?321.77 lakhs, or 121.85%, to ?585.85 lakhs from ?264.08 lakhs. Duty drawback increased by ?206.56 lakhs to ?354.08 lakhs from ?147.52 lakhs; unrealised foreign-exchange gain increased by ^118.13 lakhs to ^118.69 lakhs from ?0.56 lakh; exchange-fluctuation income increased by ?9.34 lakhs to ?27.93 lakhs; and government subsidy contributed ?19.91 lakhs compared with nil in Fiscal 2025. These increases were partly offset by commission income decreasing by ?12.84 lakhs, miscellaneous income decreasing by ?12.56 lakhs, consultancy income decreasing by ?5.33 lakhs, write-off income decreasing by ?0.79 lakh, interest income decreasing by ?0.51 lakh and discounts received decreasing by ?0.14 lakh.

Total income

As a result of the above, total income increased by ?2,631.89 lakhs, or 31.28%, to ?11,044.57 lakhs from ?8,412.68 lakhs. Revenue from operations contributed ?2,310.12 lakhs, or 87.78%, of the increase, while other income contributed ?321.77 lakhs, or 12.22%.

Cost of goods sold

Cost of goods sold increased by ?1,362.39 lakhs, or 26.36%, to ?6,531.22 lakhs in Fiscal 2026 from ?5,168.83 lakhs in Fiscal 2025. The increase was primarily attributable to higher purchases required to support the growth in our sales and operating scale. Purchases increased by ?1,891.74 lakhs to ?7,672.77 lakhs in Fiscal 2026 from ?5,781.03 lakhs in Fiscal 2025.

Cost of goods sold in Fiscal 2026 comprised material consumed of ?6,431.82 lakhs and changes in inventories of ?99.40 lakhs, compared with material consumed of ^6,117.33 lakhs, partly offset by changes in inventories of ?948.50 lakhs in Fiscal 2025. Although purchases increased, closing raw-material inventory increased to ?2,059.04 lakhs from ?818.09 lakhs, which restricted the increase in material consumed. Further, finished-goods inventory decreased to ?1,546.48 lakhs from ?1,645.89 lakhs, resulting in changes in inventories of ?99.40 lakhs being recognized as an expense during Fiscal 2026.

Cost of goods sold increased at a lower rate than the 28.35% growth in revenue from operations. Accordingly, cost of goods sold as a percentage of revenue from operations decreased to 62.45% in Fiscal 2026 from 63.43% in Fiscal 2025.

Employee benefit expenses

Employee benefit expenses increased by ?75.69 lakhs, or 13.86%, to ?621.74 lakhs from ?546.04 lakhs. Salaries and wages increased by ?86.67 lakhs to ?483.48 lakhs from ?396.81 lakhs; employer contributions to EPF and ESIC increased by ?9.53 lakhs; gratuity expense increased by ?9.59 lakhs to ?10.39 lakhs; and staff-welfare expense increased by ?4.82 lakhs to ?6.59 lakhs. These increases were partly offset by director remuneration decreasing by ?34.93 lakhs to ?68.19 lakhs from ?103.11 lakhs. Employee benefit expenses increased in absolute terms but decreased to 5.63% of total income in Fiscal 2026 from 6.49% in Fiscal 2025, as total income increased at a higher rate than employee benefit expenses.

Finance costs

Finance costs increased by ?178.83 lakhs, or 56.54%, to ?495.12 lakhs from ?316.28 lakhs. This was consistent with total borrowings increasing by ?2,056.40 lakhs, or 79.92%, to ?4,629.37 lakhs as at March 31, 2026 from ?2,572.97 lakhs as at March 31, 2025. Long-term borrowings increased by ?403.23 lakhs to ?540.19 lakhs, while short-term borrowings increased by ?1,653.17 lakhs to ?4,089.18 lakhs, principally to fund working capital, inventories and receivables. Bank interest and finance charges increased by ?74.20 lakhs to ?320.22 lakhs, and bank charges increased by ?104.63 lakhs to ?174.90 lakhs. Finance costs increased to 4.48% of total income from 3.76%.

Depreciation and amortisation

Depreciation and amortisation increased by ?33.54 lakhs, or 91.87%, to ?70.04 lakhs from ?36.51 lakhs. The increase was mainly attributable to additions of ?360.18 lakhs to Property, Plant and Equipment and ?12.98 lakhs to intangible assets during Fiscal 2026. Consequently, depreciation on Property, Plant and Equipment increased by ?29.77 lakhs to ?63.58 lakhs from ?33.82 lakhs, while amortisation of intangible assets increased by ?3.77 lakhs to ?6.46 lakhs from ?2.69 lakhs.

Other expenses

Other expenses increased by ?630.46 lakhs, or 44.80%, to ?2,037.80 lakhs from ?1,407.33 lakhs. Job-work expense increased by ?270.38 lakhs to ?1,114.12 lakhs in FY 2026 from ?843.73 lakh in FY 2025 (represented 10.65% of revenue from operations, compared with 10.35% in the previous year); freight and cartage increased by ^115.97 lakhs to ?320.24 lakhs; trade commission and discounts increased by ?106.12 lakhs to ?167.01 lakhs; factory and warehouse rent increased by ?54.77 lakhs to ?97.39 lakhs; late fees and interest increased by ^31.21 lakhs to ?31.47 lakhs; business promotion and marketing increased by ?12.47 lakhs to ?29.83 lakhs; and insurance increased by ?12.06 lakhs to ?15.79 lakhs. These increases were partly offset by clearing and forwarding expenses decreasing by ?24.55 lakhs and legal and professional charges decreasing by ?3.74 lakhs. Other expenses increased to 18.45% of total income from 16.73%, principally because job-work, freight and selling costs increased with the export-led growth in operations.

Total expenditure

Total expenditure increased by ?2,280.92 lakhs, or 30.51%, to ?9,755.92 lakhs from ?7,475.00 lakhs. The increase was lower than the 31.28% growth in total income. The principal increases were the ?1,047.90 lakh adverse movement in inventories, ?630.46 lakh increase in other expenses, ?314.49 lakh increase in material consumption, ?178.83 lakh increase in finance costs, ?75.69 lakh increase in employee costs and ?33.54 lakh increase in depreciation and amortisation.

Profit before tax

Profit before tax increased by ?350.97 lakhs, or 37.43%, to ?1,288.65 lakhs from ?937.68 lakhs. PBT margin on total income increased to 11.67% from 11.15%. The increase was supported by export-led revenue growth, higher duty drawback and foreign-exchange gain, the decline in material cost and employee cost as percentages of total income, and operating leverage. These benefits were partly offset by the reversal of the prior-year inventory credit, higher job-work and logistics costs and higher finance costs.

Tax expense

Tax expense increased by ?58.42 lakhs, from ?271.88 lakhs in Fiscal 2025 to ?330.30 lakhs in Fiscal 2026. The increase was mainly due to profit before tax increasing from ?937.68 lakhs in Fiscal 2025 to ?1,288.65 lakhs in Fiscal 2026. Accordingly, the higher taxable profit resulted in higher tax expense during Fiscal 2026.

Profit after tax and PAT margin

Profit after tax increased by ?292.55 lakhs, or 43.94%, to ?958.35 lakhs in Fiscal 2026 from ?665.80 lakhs in Fiscal 2025. The PAT margin improved to 9.16% from 8.17%. The improvement was primarily attributable to revenue growth of 28.35%, mainly driven by a 99% increase in export sales. The increase in export sales resulted in duty drawback income increasing from ?147.52 lakhs to ?354.08 lakhs. The Company also recorded government subsidy income of ?19.91 lakhs in Fiscal 2026, while unrealised foreign-exchange gain increased from ?0.56 lakhs to ^118.69 lakhs. Further, material consumption and employee costs increased at a lower rate than revenue and the effective tax rate decreased. These factors supported the increase in PAT and the improvement in PAT margin.

FISCAL 2025 COMPARED WITH FISCAL 2024

Total income increased by 131.66% to ?8,412.68 lakhs in Fiscal 2025 from ?3,631.50 lakhs in Fiscal 2024, driven by significan t growth in domestic and export sales and higher other income. Fiscal 2024 comparability should be read in light of the conversion of the erstwhile LLP into a public limited company and related changes in capital structure and presentation.

Revenue from operations

Revenue from operations increased by ?4,563.52 lakhs, or 127.29%, to ?8,148.60 lakhs from ?3,585.08 lakhs. Domestic revenue increased by ?1,948.49 lakhs, or 56.00%, to ?5,427.86 lakhs from ?3,485.19 lakhs. Export revenue increased by ?2,620.84 lakhs to ?2,720.74 lakhs from ?99.90 lakhs, and its contribution to revenue increased to 33.39% from 2.79%. Accordingly, approximately 57.43% of the total revenue increase was attributable to exports and 42.57% to domestic sales.

Other income

Other income increased by ?217.66 lakhs, or 468.93%, to ?264.08 lakhs from ?46.42 lakhs. Duty drawback increased by ?141.71 lakhs to ?147.52 lakhs; commission income increased by ?30.75 lakhs to ?66.99 lakhs; exchange-fluctuation income increased by ?18.59 lakhs from nil; miscellaneous income increased by ?13.10 lakhs from nil; interest income increased by ?6.66 lakhs to ?10.92 lakhs; consultancy income contributed ?5.33 lakhs; write-off income contributed ?0.79 lakh; discounts received contributed ?0.26 lakh; and unrealised foreign-exchange gain increased by ?0.46 lakh.

Total income

Total income increased by ?4,781.18 lakhs, or 131.66%, to ?8,412.68 lakhs from ?3,631.50 lakhs. Revenue from operations contributed ?4,563.52 lakhs, or 95.45%, of the increase, while other income contributed ?217.66 lakhs, or 4.55%.

Cost of goods sold

Cost of goods sold increased by ?2,873.16 lakhs, or 125.15%, to ?5,168.83 lakhs in Fiscal 2025 from ?2,295.67 lakhs in Fiscal 2024. The increase was primarily attributable to higher purchases required to support the growth in our sales and operating scale. Purchases increased by ?3,328.08 lakhs to ?5,781.03 lakhs in Fiscal 2025 from ?2,452.95 lakhs in Fiscal 2024.

Cost of goods sold in Fiscal 2025 comprised material consumed of ^6,117.33 lakhs, partly offset by changes in inventories of ?948.50 lakhs, compared with material consumed of ?2,789.25 lakhs, partly offset by changes in inventories of ?493.58 lakhs in Fiscal 2024. The inventory credit in Fiscal 2025 was primarily attributable to the increase in finished-goods inventory to ?1,645.89 lakhs from ?697.40 lakhs, which partly offset the increase in material consumed.

Cost of goods sold increased at a lower rate than the 127.29% growth in revenue from operations. Accordingly, cost of goods sold as a percentage of revenue from operations decreased to 63.43% in Fiscal 2025 from 64.03% in Fiscal 2024.

Employee benefit expenses

Employee benefit expenses increased by ?316.24 lakhs, or 137.61%, to ?546.04 lakhs from ?229.81 lakhs. Salaries and wages increased by ?259.75 lakhs to ?396.81 lakhs; director remuneration increased by ?31.97 lakhs to ?103.11 lakhs; employer contributions increased by ?28.58 lakhs; and staff-welfare expense decreased by ?0.34 lakh. Gratuity expense decreased by ?3.72 lakhs due to the actuarial amount recognised in Fiscal 2025. Employee costs increased broadly in line with the expansion in the operating scale.

Finance costs

Finance costs increased by ?192.04 lakhs, or 154.58%, to ?316.28 lakhs from ?124.24 lakhs. Total borrowings increased by ?1,431.86 lakhs, or 125.48%, to ?2,572.97 lakhs as at March 31, 2025 from ?1,141.11 lakhs as at March 31, 2024. Long-term borrowings increased by ?37.55 lakhs to ?136.96 lakhs and short-term borrowings increased by ?1,394.31 lakhs to ?2,436.01 lakhs, primarily to support the significant growth in inventories, receivables and operations. Interest and finance charges increased by ?130.72 lakhs to ?246.02 lakhs from ^115.30 lakhs, and bank charges increased by ?61.32 lakhs to ?70.26 lakhs from ?8.94 lakhs.

Depreciation and amortisation

Depreciation and amortisation increased by ?15.17 lakhs, or 71.09%, to ?36.51 lakhs from ?21.34 lakhs. The increase was mainly attributable to additions of ?262.43 lakhs to Property, Plant and Equipment and ?9.72 lakhs to intangible assets durin g Fiscal 2025. Consequently, depreciation on Property, Plant and Equipment increased by ?12.59 lakhs to ?33.82 lakhs from ?21.22 lakhs, while amortisation of intangible assets increased by ?2.58 lakhs to ?2.69 lakhs from ?0.11 lakh.

Other expenses

Other expenses increased by ?860.78 lakhs, or 157.49%, to ?1,407.33 lakhs from ?546.55 lakhs. Job-work expense increased by ?501.94 lakhs to ?843.73 lakhs in FY 2025 from ?341.79 lakhs in FY 2024 (represented 10.35% of revenue from operations, compared with 9.35% in the previous FY 2024); freight and cartage increased by ?146.02 lakhs to ?204.26 lakhs; trade commission and discounts increased by ?50.20 lakhs to ?60.89 lakhs; legal and professional fees increased by ?46.40 lakhs to ?73.64 lakhs; factory and warehouse rent increased by ?27.32 lakhs to ?42.61 lakhs; and travelling and conveyance increased by ?19.80 lakhs to ?33.35 lakhs. These movements were principally linked to higher processing volumes, expanded domestic and export sales, logistics and business-support requirements.

Total expenditure

Total expenditure increased by ?4,257.39 lakhs, or 132.31%, to ?7,475.00 lakhs from ?3,217.61 lakhs. The increase principally comprised higher material consumption of ?3,328.08 lakhs, other expenses of ?860.78 lakhs, employee costs of ?316.24 lakhs, finance costs of ?192.04 lakhs and depreciation of ?15.17 lakhs, partly offset by the ?454.92 lakh favourable increase in the inventory credit.

Profit before tax

Profit before tax increased by ?523.79 lakhs, or 126.55%, to ?937.68 lakhs from ?413.89 lakhs. PBT margin on total income was 11.15% compared with 11.40%. Although absolute PBT increased significantly, the margin decreased slightly because total expenditure grew marginally faster than total income, particularly due to higher job-work, freight, employee and finance costs. This was substantially offset by the lower material-cost ratio and larger inventory credit.

Tax expense

Tax expense increased by ?126.73 lakhs, from ?145.15 lakhs in Fiscal 2024 to U271.88 lakhs in Fiscal 2025. The increase was mainly due to profit before tax increasing from ?413.89 lakhs in Fiscal 2024 to ?937.68 lakhs in Fiscal 2025. Accordingly, th e higher taxable profit resulted in higher tax expense during Fiscal 2025.

Profit after tax and PAT margin

Profit after tax increased by ?397.06 lakhs, or 147.75%, from U268.74 lakhs in Fiscal 2024 to ?665.80 lakhs in Fiscal 2025. Consequently, the PAT margin improved from 7.50% in Fiscal 2024 to 8.17% in Fiscal 2025.

The improvement was primarily attributable to revenue growth of 127.29%, driven by an increase in domestic revenue from ?3,485.19 lakhs in Fiscal 2024 to ?5,427.86 lakhs in Fiscal 2025 and export revenue from ?99.90 lakhs to ?2,720.74 lakhs during the same period. The significant increase in export sales also contributed to increase in duty drawback income, which increased from ?5.81 lakhs to ?147.52 lakhs. Additionally, commission income increased from ?36.24 lakhs to ?66.99 lakhs. These factors collectively contributed to the increase in PAT and improvement in PAT margin during Fiscal 2025.

LIQUIDITY AND CAPITAL RESOURCES

Our principal liquidity requirements relate to procurement of materials, maintenance of inventory, funding of trade receivables, job-work and operating costs, capital expenditure and debt servicing. We fund these requirements through cash generated from operations, equity capital and secured and unsecured borrowings. Our business is working-capital intensive, as reflected in the growth of inventories and trade receivables.

Particulars	March 31, 2026	March 31, 2025	March 31, 2024
Current assets	8,594.17	5,412.09	2,339.46
Current liabilities	5,257.41	3,319.49	1,831.32
Working capital	3,336.76	2,092.61	508.14
Total borrowings	4,629.37	2,572.97	1,141.11
Cash and cash equivalents	9.21	327.29	9.20
Current ratio	1.63	1.63	1.28
Debt-equity ratio	1.29	1.13	2.29

Working capital increased primarily because inventories increase to ?3,605.52 lakhs and trade receivables increase to ?3,653.84 lakhs as at March 31, 2026. Total borrowings increased to ?4,629.37 lakhs as at March 31, 2026 from ?2,572.97 lakhs as at March 31, 2025, principally to support the expanded operating scale and working-capital cycle.

CASH FLOWS

Particulars	Fiscal 2026	Fiscal 2025	Fiscal 2024
Net cash used in operating activities	(1,847.27)	(1,725.80)	(856.98)
Net cash used in investing activities	(556.98)	(266.09)	(67.88)
Net cash from financing activities	2,086.18	2,307.33	911.69
Net increase/(decrease) in cash	(318.07)	318.08	(13.18)

Cash flows from operating activities

Net cash used in operating activities was ?1,847.27 lakhs in Fiscal 2026, compared with ?1,725.80 lakhs in Fiscal 2025 and ?856.98 lakhs in Fiscal 2024. In Fiscal 2026, operating cash flow was adversely affected principally by increases of ?1,796.44 lakhs in trade receivables, ?1,141.54 lakhs in inventories and ?576.01 lakhs in other current assets. These outflows were partly offset by a ?132.53 lakh decrease in short-term loans and advances and increases of ?68.56 lakhs in trade payables and ?159.32 lakhs in other current liabilities. The corresponding working-capital outflows in Fiscal 2025 and Fiscal 2024 explain why operating cash flow remained negative despite positive profit before tax.

Cash flows from investing activities

Net cash used in investing activities was ?556.98 lakhs in Fiscal 2026, ?266.09 lakhs in Fiscal 2025 and ?67.88 lakhs in Fiscal 2024. These outflows principally related to purchases of property, plant and equipment and intangible assets and increases in other non-current assets, partly offset by interest received.

Cash flows from financing activities

Net cash generated from financing activities was ?2,086.18 lakhs in Fiscal 2026, ?2,307.33 lakhs in Fiscal 2025 and ?911.69 lakhs in Fiscal 2024. Financing inflows principally represented proceeds from borrowings and issue of share capital, net of repayment of borrowings and interest paid. These inflows funded the working-capital and investing cash-flow requirements described above.

INDEBTEDNESS

As at March 31, 2026, our total borrowings were ?4,629.37 lakhs, comprising long-term borrowings of ?540.19 lakhs and short-term borrowings of ?4,089.18 lakhs. The debt-equity ratio was 1.29 as at March 31, 2026 compared with 1.13 as at March 31, 2025 and 2.29 as at March 31, 2024. For further details, see “Financial Indebtedness” and “Restated Financial Information” beginning on pages 215 and 199Error! Bookmark not defined., respectively.

OTHER MATTERS

1. Unusual or infrequent events or transactions

Except as disclosed in the Red Herring Prospectus and the Restated Financial Information, there were no unusual or infrequent events or transactions that materially affected our results during the periods under review.

2. Significant economic changes

Other than matters disclosed in the sections titled “Risk Factors”, “Our Business”, “Industry Overview” and this chapter, we are not aware of significant economic changes that have materially affected or are likely to materially affect income from continuing operations.

3. Known trends or uncertainties

Apart from the risks disclosed in “Risk Factors” beginning on page 20, we are not aware of any other known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations.

4. Future relationship between costs and revenues

The future relationship between costs and revenues will be affected by product mix, domestic and export demand, material prices, job-work rates, employee costs, freight and logistics costs, finance costs, foreign-exchange movements and price realisation.

5. Extent to which increases in revenue are attributable to volume, products or prices

Revenue growth during the periods under review was driven by expansion in the scale of operations and customer demand, including a significant increase in export revenue. The contribution of changes in volumes, product mix and price realisation may vary across periods.

6. Segment reporting

The Restated Financial Information presents processing and trading as operating components for segment-result purposes. Substantially all assets and liabilities are attributed to processing operations. For details, see Annexure 34 to the Restated Financial Information.

7. Seasonality

Demand and shipments may be influenced by customer buying cycles, export order schedules, festive and seasonal demand, logistics and inventory planning. Any such effect may cause results to vary between periods.

8. Dependence on customers and suppliers

Our business is dependent on certain key customers and suppliers. Our top ten customers contributed 83.82%, 87.42% and 95.84% of revenue from operations in Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively. Our top ten suppliers accounted for 76.41%, 58.26% and 94.17% of total purchases in the same periods. Loss of a significant customer or supplier, a reduction in orders, delayed payments or inability to source suitable material on acceptable terms could affect our operations.

9. Competitive conditions

Competitive conditions are described in the chapters titled “Industry Overview” and “Our Business” beginning on pages 121 and 142, respectively.

10. Material developments after March 31, 2026

The Restated Financial Information notes that the Company issued bonus equity shares on July 14, 2026 in the ratio of four equity shares for every one equity share held. Except as disclosed in the Red Herring Prospectus, there have been no other material developments after March 31, 2026 that would materially affect the information presented in this chapter.