TPI India Ltd Management Discussions

1. Global Economic Overview

The global economy demonstrated steady, resilience through FY 2025-26, navigating persistent geopolitical tension, elevated tariff activity and volatile energy markets. According to the International Monetary Fund, world output grew by an estimated 3.3% in calendar year 2025 and is projected at a similar 3.3% for 2026, aided by continued front-loading of trade ahead of tariff implementation, moderating effective tariff rates, easier financial conditions and a wave of technology-linked capital expenditure, particularly around artificial intelligence infrastructure in North America and Asia. Global headline inflation is estimated to have eased from around 4.1% in 2025 toward roughly 3.8% in 2026, giving central banks incremental room to support growth.

Advanced economies grew at a moderate pace of close to 1.6%, supported by resilient labour markets, accommodative financial conditions and improving consumer demand, while the Euro Area and the United Kingdom continued to see subdued growth of around 1.1–1.3%, weighed down by structural headwinds and elevated energy costs. Chinas economy expanded by an estimated 4.8–5.0%, supported by proactive government stimulus, infrastructure-linked credit flow and continued export strength, even as its property sector remained a drag. Emerging Markets and Developing Economies as a group grew faster, in the region of 4.0–4.4%, led by resilient domestic consumption, improving manufacturing activity and infrastructure investment.

Supply chains continued to be reshaped by geopolitical realignment during the year. Disruptions around key maritime chokepoints, the ongoing conflict in West Asia, and evolving trade barriers between major blocs accelerated the shift toward regionalisation, "friend-shoring" and diversification of sourcing away from single-country dependence. Elevated freight, energy and logistics costs, alongside continuing US dollar and interest-rate volatility, remained key variables that industrial and packaging supply chains – including the Companys – had to actively manage through the year.

2. Indian Economic Condition

India remained the worlds fastest-growing major economy for the fourth consecutive year. Per the First Advance Estimates and the Economic Survey 2025-26 tabled in Parliament, real GDP growth for FY 2025-26 is estimated at 7.4%, up from 6.5% in FY 2024-25, with Gross Value Added (GVA) growth estimated at 7.3%. Growth was led by robust domestic demand, with private final consumption expenditure rising to approximately 61.5% of GDP – its highest share since 2011-12 – and gross fixed capital formation reaching around 30% of GDP, with investment activity growing by roughly 7.6% in the first half of the fiscal year.

Inflation moderated sharply through the year, with retail (CPI) inflation easing from 4.6% in FY 2024-25 to around 1.7% during April–December 2025, supported by favourable food prices and stable monsoon conditions. In response, the Reserve Bank of India cumulatively reduced the repo rate through the year, improving monetary transmission, credit availability and investment activity, while the banking systems asset quality remained at multi-decade bests, with gross and net non-performing assets continuing to decline. The Centre remained on track to contain the fiscal deficit below its 4.4–4.5% of GDP target for the year, reinforcing macroeconomic stability.

Industrial activity remained resilient, with industrial Gross Value Added growing by an estimated 7.0% year-on-year in real terms in the first half of FY 2025-26, and the Index of Industrial Production registering healthy growth through the year, supported by manufacturing and mining. Indias merchandise and services exports continued to grow despite elevated US tariffs, with exports as a share of GDP holding at over 21%, aided by trade agreement progress, manufacturing scale-up under Production Linked Incentive (PLI) schemes, and the broader ‘Make in India and ‘Atmanirbhar Bharat initiatives. Structural reforms including GST rationalisation (GST 2.0), continued Quality Control Order expansion, and sustained public capital expenditure further strengthened the domestic manufacturing and export ecosystem in which the Company operates.

Sources: Economic Survey 2025-26 (Ministry of Finance, GoI); IMF World Economic Outlook, January 2026 Update; PIB; RBI.

3. Industry Overview – FIBC and Kraft Paper Packaging a. Global FIBC (Flexible Intermediate Bulk Container) Market

The global FIBC industry continued its steady expansion through FY 2025-26, with independent estimates placing the market between approximately USD 6.0–8.5 billion for the base year, and forecasts projecting a compound annual growth rate broadly in the range of 4–6% over the coming decade. Growth continues to be driven by rising bulk-material trade in chemicals, agriculture, food, pharmaceuticals, construction and mining, alongside the structural shift of global buyers toward lightweight, stackable, reusable bulk packaging as an alternative to rigid containers and drums.

Asia-Pacific remains the fastest-growing regional market, while India and China together continue to account for the majority of global FIBC manufacturing volumes. India has consolidated its position as the worlds leading FIBC exporter, supplying a dominant share of FIBC imports into the United States and the European Union and roughly half of Canadas requirement, underpinned by cost competitiveness, a well-established woven polypropylene manufacturing base, and consistent quality and compliance standards.

b. Financial Performance:

TPI has achieved a 12% revenue growth, compared to previous year achieving a turnover of INR 34.00 crores primarily due to contributions from higher volumes across the packaging segment. The net profit for FY 25-26 stood at INR 263lacs compared to INR 35.85lacs, the increase was primarily due to utilization of capacity We have continuously been adding new customers and strengthening the market share, resulting in the sales growth mentioned. Furthermore, our efforts on stringent cost control measures, enhanced product mix and focus on reducing process wastage will contribute to the achievement of healthy margins in the coming quarters. Indias broader plastic and paper packaging industry remains one of the fastest-growing manufacturing segments in the country, supported by robust underlying demand from agriculture, chemicals, cement, food processing and export-oriented sectors. Rising regulatory scrutiny around single-use plastics, growing customer preference for recyclable and sustainable packaging formats, and the steady formalisation of Indias manufacturing base under GST, PLI and ‘Make in India continue to support the Companys dual focus on woven (FIBC) and paper-based (Kraft) packaging solutions, positioning it to serve customers seeking both cost-competitive and environmentally compliant bulk-packaging alternatives

4. Strengths and Opportunities a. Strengths

• Indias globally competitive cost structure, skilled manufacturing workforce and mature woven polypropylene ecosystem, which have made the country the worlds largest FIBC exporter.

• An integrated / backward-linked manufacturing base spanning both FIBCs and Kraft paper Bags, enabling the Company to serve customers across both plastic and paper-based packaging preferences.

• Consistent quality, certification and compliance standards (including ISO & UN certifications where applicable), which support customer retention in regulation-sensitive export markets.

• Benefit from Indias macroeconomic stability, moderating input-side inflation, and improving ease of doing business, which support planning and capital allocation.

b. Opportunities

• Rising global and Indian demand for bulk and industrial packaging, driven by growth in chemicals, agriculture, cement, food processing and pharmaceutical end-use industries.

• Accelerating global shift from rigid and single-use plastic packaging toward reusable, recyclable FIBCs and paper-based Kraft alternatives, in response to tightening environmental regulation in the EU, US and other export markets.

• Continued diversification of global sourcing away from China toward India, Vietnam and Bangladesh, positioning India – and the Company – to capture incremental export share, particularly in FIBCs.

• Potential to expand into higher-value, higher-margin product categories such as Type C/D anti-static FIBCs, food-grade and pharma-grade bags.

5. Threats and Weaknesses a. Weaknesses

• Exposure to volatile raw material costs, particularly polypropylene (a crude-oil derivative) and wood pulp/waste paper, which directly affect input cost and margin stability.

• Capital- and energy-intensive manufacturing processes (extrusion, weaving, lamination for FIBC) that are sensitive to energy price volatility.

• Industry fragmentation and intense price-based competition among domestic and regional (Vietnam, Bangladesh, China) manufacturers, which can pressure realisations. b. Threats

• Escalating and unpredictable tariff actions by key export destinations (particularly the United States), which could directly affect FIBC and Kraft-based export competitiveness and order flow.

• Continuing geopolitical tension in West Asia and around key shipping corridors, which can disrupt freight availability, elevate logistics costs and delay export shipments.

• Currency volatility (INR against the US Dollar and Euro), affecting raw material costs and transportation.

• Potential slowdown in global industrial or agricultural commodity trade, which would directly reduce demand for bulk packaging.

Internal Control System:

The Company has a requisite system of internal controls which are regularly evaluated, tested & revisited by the Management and the Internal Auditors. Further, the report of the Internal Auditors is reviewed by the Top Management and the Audit Committee on a quarterly basis

Material Development in Human / Industrial Relation:

• In accordance with our values, we encourage our employees to embrace an inclusive culture of language, location and thought. Our success depends on maintaining a culture where every employee communicates with respect, candor and trust. We rely on the unique qualities and talents of our employees to help us achieve our Build to Last strategy. We strive to create an inclusive and equitable working environment as well as promoting equitable treatment within our workforce, including the support of multiple colleague-led resource groups, fostering an environment where our employees feel valued and appreciated for the distinct voice they bring to our Company. In addition, we strive to compensate our employees fairly and equitably and continue to monitor pay equity data and educate our managers to make objective compensation decisions in line with our Companys compensation policies.

• To foster employee engagement, we encourage and value feedback from our employees and conduct annual engagement surveys of all our global employees to better understand our employees level of engagement and identify areas of improvement to build high performing teams to meet our strategic goals

• TPI believes in and considers Human Resources as a vital asset for growth of the Company. The Company emphasizes its People Development Processes and strives to upgrade skill sets to motivate the workforce to contribute towards organization goals. The Company focuses on adequate training to empower and encourage employees. A transparent and active line of communication also exists within the organization to enable team work and promote a culture of trust and confidence. As on March 31, 2026, TPI has a team of 150 employees

6. Risks and Concerns

• Input cost risk: polypropylene prices are linked to crude oil and can be volatile; similarly, waste paper and pulp prices for Kraft manufacturing are subject to global supply-demand swings.

• Trade policy and tariff risk: changes in US, EU or other export-market tariff and trade-remedy regimes (anti-dumping/countervailing duty actions) could affect FIBC export volumes and pricing.

• Regulatory and compliance risk: evolving environmental, labour and safety regulations in India and in export markets require continuous compliance investment.

• Energy and logistics risk: elevated freight rates, port congestion, or disruption at key global shipping chokepoints could increase costs and delay deliveries.

The Company has instituted internal risk-management processes, including diversification of customer base and geography, prudent working-capital and treasury management, and continued investment in compliance and quality systems, to mitigate the risks set out above.

7. Future Outlook

Looking ahead into FY 2026-27, both the global and Indian macroeconomic backdrop remain broadly supportive for the FIBC and Kraft paper packaging industry. The IMF projects global growth to hold steady at around 3.2–3.3%, with continued (if moderating) trade and technology-investment tailwinds, while Indias medium-term growth potential is assessed at close to 7%, with real GDP growth for FY 2026-27 projected in the range of 6.8–7.2% by the Economic Survey. Sustained domestic consumption, infrastructure-led investment, and policy support for manufacturing and exports should continue to underpin demand for industrial and bulk packaging.

Within the industry, the structural drivers that have supported growth through FY 2025-26 – rising global bulk-trade volumes, the ongoing substitution of rigid and single-use plastic packaging with reusable FIBCs and recyclable Kraft-based formats, and the diversification of global sourcing toward India – are expected to persist over the medium term. Indias continued dominance in global FIBC exports, combined with the Indian Kraft paper markets comparatively faster growth trajectory (both estimated to expand meaningfully faster than the corresponding global averages), position the Company to pursue calibrated capacity expansion, product-mix upgrades toward higher-value and certified categories, and deeper penetration of both export and fast-growing domestic end-use segments such as agriculture, chemicals, cement, food processing and e-commerce.

At the same time, the Company will continue to closely monitor tariff and trade-policy developments in key export markets, raw material price movements, freight and logistics conditions, and currency volatility, and will calibrate its commercial, sourcing and capital-allocation strategies accordingly. The Company remains committed to strengthening its manufacturing efficiency, sustainability credentials and customer relationships as it navigates the opportunities and uncertainties of the year ahead.

Cautionary Statement

The management discussion and analysis report contain forward-looking statements based on data available to the company, assumptions about economic circumstances, current government policies and so on. Despite managements ongoing monitoring of market conditions and other factors, the company cannot guarantee the accuracy of its assumptions or future performance. As a result, actual result, performance or accomplishments may vary significantly from those anticipated in any such forward looking statements. The company accepts no responsibility to publicly change, modify or revise any forward looking statement based on any later development, information or event

	By order of the Board
	For TPI India Limited
	Mr. Bharat C. Parekh
Date: September 4, 2026	Managing Director
Place: Murbad	DIN: 02650644

ANNEXURE III

The information required under section 197 of the Act read with rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are given below:

a) The ratio of the remuneration of each director to the median remuneration of the employees of the Company for the financial year:

Name of the directors	Ratio to median Remuneration
Non-executive directors
Mr. Ravindra Shukla	1.40
Mr. Ishan Sarleka	0.20
Ms. Punam Nyaynirgune	0.20
Executive Director
Mr. Bharat Parekh	10.80

b) The percentage increase in remuneration of each director, chief executive officer, chief financial officer, company secretary in the financial year:

Directors, Chief Executive Officer, Chief Financial Officer and	% Increase in remuneration in the financial year
Company Secretary
Mr. Bharat Parekh, Managing Director	NA
Mr. Ravindra Shukla, Non-Executive Independent Director	NA
Mr. Ishan Sarleka, Non-Executive Independent Director	NA
Ms. Punam Nyaynirgune, Non-Executive Director	NA
Mr. Mahesh Khapre, Chief Financial Officer	NA
Mr. Hardik Jain, Company Secretary	NA

c) The percentage increase in the median remuneration of employees in the financial year: Not Increased

d) The number of permanent employees on the rolls of Company: 25

e) Average percentile increases already made in the salaries of employees other than the managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration:

The average annual increase in remuneration of employees: Not Increased. Increase in the managerial remuneration for the year: Not increased

f) Affirmation that the remuneration is as per the remuneration policy of the Company:

The Nomination and Remuneration Committee of the Company has affirmed at its meeting that the remuneration is as per the remuneration policy of the Company. The policy is available on the companys website: www.tpiindia.in

g) This statement containing particulars of employees as required under section 197(12) of the Act read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, -26 2014, is not applicable to the company.

	By order of the Board
	For TPI India Limited
	Bharat Parekh
Date: September 04, 2026	Managing Director
Place: Murbad	DIN: 02650644