Trident Ltd Management Discussions

Indian Economic Overview

India remained one of the fastest-growing major economies in FY2025-26, supported by resilient domestic demand, improving investment activity and stable macroeconomic fundamentals despite heightened geopolitical uncertainties and global supply- chain disruptions. Real GDP growth was estimated at 7.6% during the year, following growth rates of 7.1% in FY2024-25 and 7.2% in FY2023-24. Growth momentum remained supported by strong private consumption, sustained public capital expenditure and improving industrial activity across key sectors of the economy.

Private Final Consumption Expenditure (PFCE) accounted for around 56.7% of GDP during the year, reflecting resilient consumer demand across urban and rural markets. Investment activity also strengthened, with Gross Fixed Capital Formation (GFCF) contributing nearly 31.7% of GDP and registering growth of 7.1%, supported by continued infrastructure development, manufacturing expansion and gradual improvement in private sector investment. Manufacturing and services remained key contributors to economic growth, supported by infrastructure spending, improving credit availability and increasing formalisation across sectors.

Indias manufacturing sector maintained expansionary momentum during most of FY2025-26, aided by government-led infrastructure investments, improving industrial output and policy support for domestic manufacturing. However, global uncertainties, rising freight costs, elevated energy prices and geopolitical tensions in West Asia created pressure on input costs and business sentiment during the latter part of the year. Indias Composite PMI moderated to 56.5 in March 2026, reflecting softer growth across manufacturing and services amid inflationary pressures and market uncertainty.2

Inflation remained relatively moderate through most of the year before witnessing a gradual increase toward the close of FY2025-26. Consumer price inflation rose from 2.7% in January 2026 to 3.4% in March 2026, primarily led by food price pressures and higher energy-related risks arising from geopolitical developments.3 Despite external uncertainties,

Indias macroeconomic fundamentals remained relatively stable, supported by healthy financial sector conditions, robust tax collections, stable banking sector balance sheets and continued policy support for economic growth.

Policy focus during the year remained centred on strengthening long-term growth drivers through infrastructure development, manufacturing expansion and fiscal consolidation. Structural reforms such as GST rationalisation, implementation of labour codes and continued focus on Production-Linked Incentive (PLI) schemes supported formalisation, industrial competitiveness and supply-chain integration. The Union Budget 2026-27 further reinforced the governments emphasis on infrastructure-led growth, with public capital expenditure increased to ^12.2 lakh crore from ^11.2 lakh crore in FY2025-26, alongside continued investments in logistics, industrial corridors, energy security and strategic manufacturing sectors.4

Outlook

Indias economic outlook remains resilient, supported by strong domestic fundamentals, continued infrastructure investments and sustained policy support. According to RBI projections, real GDP growth for FY2026-27 is projected at around 6.9%, with domestic demand expected to remain the primary growth driver.5 Private consumption is likely to remain healthy, supported by stable macroeconomic conditions, improving income levels, favourable agricultural conditions and steady urban demand trends. Investment activity is also expected to sustain momentum, driven by continued public capital expenditure, improving capacity utilisation and gradual strengthening of private sector participation.

Government focus on domestic manufacturing, logistics infrastructure, renewable energy, digital expansion and strategic sectors is expected to support industrial growth and long-term economic competitiveness. Manufacturing-linked initiatives, industrial corridor development, supply-chain diversification and increasing integration with global value chains are also expected to strengthen Indias industrial ecosystem over the medium term. Ongoing trade agreements and tariff rationalisation measures may further support export growth and global market access opportunities.

The outlook remains exposed to global uncertainties, including geopolitical tensions, volatility in crude oil prices, supply-chain disruptions and fluctuations in capital flows.

Early forecasts from the India Meteorological Department (IMD) indicate that the 2026 southwest monsoon is likely to be below normal, with rainfall estimated at around 92% of the long period average.6There are also concerns regarding the possible emergence of El Nino conditions during the monsoon season, which could affect rainfall distribution across parts of the country. A weaker and uneven monsoon may impact agricultural output and rural demand, while also exerting pressure on food prices and consumption activity across agriculture-dependent sectors in the near term.

Global trade disruptions, weaker external demand conditions and prolonged geopolitical instability may also affect export growth, investment flows and financial market stability.

However, Indias relatively strong macroeconomic fundamentals, improving infrastructure ecosystem, digital transformation, policy reforms and manufacturing competitiveness are expected to support steady economic growth and resilience amid an evolving global economic environment.

Industry Overview Textile

Global Textile Market

The global textile industry witnessed steady growth during FY2025-26, supported by rising demand across fashion, home textiles and technical textile applications despite geopolitical disruptions and evolving trade dynamics. The global textile market was estimated at approximately USD 0.74 trillion in 2025 and is projected to reach around USD 1.02 trillion by 2031, with a CAGR of nearly 5.1% during 2026-2031. Asia-Pacific retained its position as the largest textile manufacturing hub globally, accounting for over 54% of global output, supported by integrated supply chains, competitive manufacturing ecosystems and strong export capabilities.7

The industry landscape evolved amid shifting sourcing strategies, stricter compliance requirements and rising sustainability expectations. Global brands accelerated supply- chain diversification, traceability initiatives and certified sourcing practices in response to changing trade regulations and geopolitical uncertainties. Regulatory developments such as the EU Digital Product Passport further encouraged investments in digital supply-chain infrastructure, recycled fibres and sustainable manufacturing solutions.

The global home textile segment recorded healthy growth during the year, driven by rising consumer spending on home decor, wellness-oriented living spaces and premium furnishing products. Demand remained strong across bed linen, bath linen, carpets and upholstery categories, supported by residential housing growth, hospitality refurbishment activities and organised retail expansion. The global home textile market was estimated at around USD 136.25 billion in 2025 and is expected to grow steadily, supported by increasing preference for branded and value-added furnishing products.8

Global cotton production stood at nearly 119.9 million bales during 2025-26, while consumption remained stable at around 118.7 million bales. China, India and Brazil remained the leading cotton-producing countries, while Bangladesh, Vietnam and China dominated textile manufacturing and cotton imports.9

Going forward, the global textile industry is expected to benefit from premiumisation trends, sustainability-led investments, digital transformation and supply-chain realignment initiatives. Countries such as India and Vietnam are likely to strengthen their position within global textile supply chains under the ongoing China-plus- one sourcing strategy adopted by global brands and retailers. Increasing investments in recycled fibres, circular manufacturing systems, technical textiles and renewable-energy-based production infrastructure are also expected to support long-term industry growth.

Indian Textile Market

Indias textile industry witnessed a year shaped by shifting global sourcing strategies, expanding trade partnerships and sustained policy support aimed at strengthening domestic manufacturing capabilities. As global brands increasingly diversified supply chains beyond China and focused on reliable, large-scale sourcing destinations, India further strengthened its position as a key textile and apparel manufacturing hub supported by its integrated value chain, abundant raw material base and growing manufacturing ecosystem.

The domestic textile and apparel market was estimated at around USD 225 billion in 2025 and remained one of the largest contributors to Indias manufacturing economy.10 India retained its position as the worlds second-largest producer of textiles and garments and the sixth-largest textile exporter globally, with a 4.6% share in global textile and apparel trade.11

Indias textile exports demonstrated resilience during FY2025-26 despite geopolitical disruptions and evolving tariff structures. Total textile exports, including handicrafts, increased by 2.1% to ^3.16 lakh crore, supported by growth across readymade garments, man-made textiles and value-added product categories.12 Export momentum remained broad-based across several international markets including the UAE, UK, Germany, Spain and Japan, while ongoing trade agreements with the UK, EU, EFTA and other regions are expected to further strengthen Indias access to global markets.

Indias home textile segment also maintained healthy growth momentum, supported by rising urbanisation, premiumisation trends, organised retail expansion and increasing consumer spending on home decor and lifestyle products. The Indian home textile market reached approximately USD 4.51 billion in 2025 and is projected to grow steadily over the long term, supported by strong demand across bed linen, bath linen and furnishing products.13

Key Initiatives and Policy Support

PM MITRA Parks14 )

The Government accelerated the implementation of the PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks initiative aimed at creating large-scale, integrated textile manufacturing ecosystems across the country. Seven PM MITRA Parks are being developed in Tamil Nadu, Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Telangana and Uttar Pradesh with a planned outlay of ^4,445 crore over seven years.

These parks are designed to provide world-class infrastructure, integrated logistics, plug-and-play facilities and an end-to-end value chain covering spinning, weaving, processing, garmenting and technical textiles. During FY2025-26, infrastructure development activities and investor mobilisation gained momentum across approved locations, with investment MoUs signed for proposed investments of ^27,434 crore. The initiative is expected to improve scale efficiencies, reduce logistics costs and strengthen Indias competitiveness within global textile supply chains15.

0 Production Linked Incentive (PLI) Scheme

The Production Linked Incentive (PLI) Scheme for textiles supported investments across man-made fibre apparel, MMF fabrics and technical textiles. To encourage broader industry participation, the Government introduced key revisions including reduction in minimum investment thresholds, addition of new product categories and relaxation in eligibility criteria. These measures are aimed at improving manufacturing scale, export competitiveness and value-added textile production across high- growth segments.

Cotton Sector Development and Kasturi Cotton Bharat^

The Government announced initiatives focused on improving cotton productivity, fibre quality, mechanisation and traceability across the cotton value chain. Under the Mission for Cotton Productivity (Kapas Kranti), investments were proposed to improve cotton yield, research and sustainable farming practices. Simultaneously, the Kasturi Cotton Bharat initiative promoted Indian cotton globally through branding, certification and traceability frameworks aimed at enhancing the positioning of Indian cotton in international markets. These initiatives are expected to support premium and sustainable cotton-based textile manufacturing.

Cotton Sector Reforms16

The Government approved the Mission for Cotton Productivity under the National Mission for Cotton Productivity (Kapas Kranti) with an outlay of over ^5,600 crore up to 2030-31. The initiative aims to improve cotton productivity, fibre quality, mechanisation and research capabilities, while strengthening Indias competitiveness across cotton-based textile value chains.

Technical Textiles and MMF Development

Policy emphasis on technical textiles and man-made fibres remained strong during the year in line with changing global consumption patterns and increasing demand for specialised textile applications. Under the National Technical Textiles Mission (NTTM), the Government supported research and development, startup incubation, export promotion and skill development initiatives across high-value textile segments. The mission also focused on industry-academia collaboration, innovation and indigenous technology development across categories such as medical textiles, industrial textiles, geotextiles and performance fabrics.

Union Budget 2026-27 Support" ^

The Union Budget 2026-27 placed significant emphasis on strengthening the textile value chain through initiatives focused on modernisation, sustainability, skilling and employment generation. New programmes such as the National Fibre Scheme, Tex-Eco Initiative and Samarth 2.0 were introduced to strengthen fibre availability, promote sustainable manufacturing and improve industry-ready workforce capabilities.

Trade Agreements and Export Facilitation J

India expanded its global trade integration during FY2025-26 through ongoing agreements and negotiations with regions including the UK, EU, EFTA, Oman and New Zealand. These developments are expected to improve preferential market access, diversify export opportunities and improve Indias positioning within global textile supply chains. Export promotion measures such as the RoSCTL and RoDTEP schemes also supported cost competitiveness for Indian textile exporters amid evolving global trade dynamics.

Bharat Tex 202617 )

The launch of Bharat Tex 2026 further strengthened Indias positioning as a global textile sourcing and innovation hub. The event is expected to bring together over 3,500 exhibitors, 7,000 international buyers from more than 140 countries and over 1.3 lakh trade visitors across the entire textile value chain. The platform will focus on sustainability, technical textiles, innovation, MSME integration and global market access, while promoting India as a reliable and large-scale textile manufacturing destination.

Paper

Global Paper Industry

Shifting consumption patterns, sustainability regulations and evolving end-use applications reshaped the global paper industry. While digital adoption impacted certain traditional paper categories, demand from packaging, educational publishing, hygiene products and specialty paper applications supported overall industry stability. The global pulp and paper market was valued at approximately USD 351.7 billion in 2025 and is projected to reach around USD 416.6 billion by 2035.18 Asia-Pacific remained the largest regional market, accounting for over 56% of global market share, supported by strong consumption across China, India and other emerging Asian economies.

Printing and Writing (P&W) Paper9

Educational demand, office documentation requirements and commercial printing applications supported the global printing and writing paper market across emerging economies. While mature markets witnessed gradual demand moderation due to digitalisation and paperless workflows, countries such as India recorded relatively stable consumption supported by educational publishing, government usage and stationery demand. Asia remained the largest consumption region globally for printing and writing paper grades.

Manufacturers increasingly focused on premium paper grades, sustainable sourcing practices and operational efficiencies amid fluctuations in pulp, energy and logistics costs. Demand also shifted towards certified, recyclable and environmentally responsible paper products across institutional and commercial segments.

Copier Paper20

Despite increasing digital adoption across offices and commercial establishments, copier paper retained an important role across educational institutions, government departments, legal documentation and day-to-day business operations during FY2025-26. The global copier paper market was valued at approximately USD 18.8 billion in 2026 and is projected to reach around USD 28.1 billion by 2036, with a CAGR of nearly 4.1% during the forecast period. Demand remained strong for A4 and A3 paper formats widely used across office, academic and commercial printing applications.

The market also witnessed increasing focus on recyclable packaging, sustainable sourcing and premium-quality copier paper compatible with high-speed printing systems. Asia- Pacific remained the fastest-growing regional market supported by expanding educational infrastructure, commercial activity and office formalisation across emerging economies such as India and China.

Indian Paper Industry

Rising educational demand, growth in organised retail and increasing preference for sustainable paper-based products supported the Indian paper industry during FY2025-26 despite persistent cost pressures and global supply-chain disruptions.

India remained one of the fastest-growing paper markets globally, aided by low per capita paper consumption, expanding literacy levels and growing demand across packaging, commercial printing and educational applications. The Indian paper market was estimated at around USD 10.66 billion in 2025 and is projected to reach approximately USD 13.24 billion by 2034.2

The industry landscape also witnessed increasing focus on sustainable manufacturing, recyclable products and agro-based raw material usage amid evolving environmental regulations and rising preference for eco-friendly alternatives. Indias paper industry largely relies on agro-based raw materials and recycled wastepaper due to limited domestic pulpwood availability. Simultaneously, rising freight, pulp, energy and wastepaper costs exerted pressure on industry margins during the year, particularly for import-dependent manufacturers.

Growth Drivers in Indias Writing and Printing Paper Segment

Education Sector Demand	Low Per Capita Paper Consumption
Implementation of the National Education Policy (NEP), rising student enrolment and increasing government expenditure on education continued to support demand for textbooks, notebooks, examination materials and other educational printing applications. Expanding educational infrastructure and literacy levels remain important long-term demand drivers for writing and printing paper in India.	Indias per capita paper consumption remains significantly lower than the global average, indicating substantial long-term growth potential across educational, office and commercial paper applications. Rising literacy, urbanisation and organised economic activity are expected to support structural demand growth over the medium term.
Copier Paper Consumption	Sustainable and Agro-based Paper Demand
Demand for copier paper remained supported by office documentation requirements, educational institutions, commercial establishments and government usage. The copier paper segment is expected to witness healthy medium-term growth driven by increasing formalisation across businesses and continued reliance on printed documentation across institutional applications.	Growing environmental awareness and preference for recyclable and eco-friendly products are increasing demand for agro-based, recyclable and sustainable paper solutions. Manufacturers using alternative raw materials such as wheat straw and recycled fibre are expected to benefit from the increasing focus on environmentally responsible paper production.
Commercial and Institutional Printing	Government and Public Sector Procurement
Commercial printing, catalogues, brochures, examination papers and institutional documentation continued to support demand for writing and printing paper despite rising digital adoption. Indias paper market increasingly reflects a hybrid print and digital consumption pattern across educational, corporate and government applications.	Stable demand from government departments, educational institutions and administrative offices continues to provide visibility for writing and printing paper consumption. Government-backed educational programmes and public procurement remain important contributors for copier, maplitho and cream wove paper grades.

Company Overview

Trident Limited (Trident) is one of Indias largest vertically integrated manufacturers of home textiles (including Bath and Bed Linen), yarn, paper and chemicals. As the flagship company of the Trident Group, the Company operates large-scale manufacturing facilities in Punjab and Madhya Pradesh, supported by its headquarters in Ludhiana, Punjab. Through its diversified operations and integrated manufacturing capabilities, Trident serves both domestic and international markets across multiple product categories.

Trident has developed a significant presence across bath linen, bed linen, yarn and paper segments, catering to global retailers, institutional customers and branded channels. Long-standing relationships with global retailers, institutional customers and supply-chain partners continued to support market responsiveness, product development and execution reliability.

Trident is widely recognised for its terry towel manufacturing capabilities and its established presence in wheat straw-based paper manufacturing. Its integrated operational model supports quality consistency, supply reliability and manufacturing efficiencies across businesses.

Driven by a focus on product quality, operational excellence, innovation and responsible manufacturing practices, the Company continues to strengthen its capabilities across integrated manufacturing, premium product development and digitalised operations while creating long-term sustainable value.

Business Overview and Performance Yarn

Tridents Yarn business (business) caters to a diverse customer base across the textile value chain, supported by modern manufacturing facilities and a broad product portfolio. The business manufactures cotton, blended and speciality yarns used across home textiles, apparel, weaving and knitting applications.

Its integrated manufacturing operations and focus on product quality support consistent supply and operational efficiencies across domestic and export markets.

During the year, the business continued to strengthen its focus on value-added and specialised yarn offerings in response to changing customer requirements and sustainability-led sourcing trends. The Company maintained emphasis on product consistency, operational efficiencies and certified yarn solutions while aligning its portfolio with evolving market preferences and industry requirements.

Product Portfolio

• 100 % Cotton Yarns - Compact

Combed/Karded yarns

• Open-end Yarn

• Air Jet Yarn

• Organic Cotton Yarn

• Core Spun Yarn

• Cellulosic blended Yarns - Cotton blends with modal, lyocell, bamboo

• Eli-twist Yarn

• Slub Yarn

• Air-rich Yarn

• Certified Cotton Yarn

• Melange Yarn

• Packed Dyed Yarn

• Zero Twist Yarn

• 100% Dyed Yarn

• Linen Blends

Home Textiles

The Companys home textiles business serves a diverse customer base across domestic and international markets through its bath and bed linen portfolio. During the year, the focus remained on expanding differentiated product offerings, strengthening sustainability-led innovations and aligning product development with emerging market and consumer trends.

Bath Linen

The Bath Linen business operates through integrated manufacturing facilities located at Dhaula (Punjab) and Budhni (Madhya Pradesh). The business offers a comprehensive portfolio catering to multiple consumer segments and applications across domestic and export markets. Backed by strong manufacturing infrastructure, flexible production capabilities and product development initiatives, the Company continues to strengthen its presence across premium, fashion and sustainable towel categories.

During the year, the business focused on expanding value-added offerings, improving operational efficiencies and enhancing product differentiation through innovation-led developments. Manufacturing capabilities continued to evolve through flexible loom configurations, advanced dyeing and finishing capabilities with a focus on quality enhancement and responsiveness to global customer requirements. The Company also undertook automation and digital integration initiatives across material movement, quality inspection and production monitoring to improve operational visibility, consistency and productivity.

Innovation initiatives during the year included development of towels using recycled fibre-based blended yarns, sustainable alternatives to PVA fibre applications and chemical-free antimicrobial finishes.

Product Portfolio

• Luxury Blends

• Sustainable Fibres

• Spa and hotel

• Beach

• Jacquard

• Dobby texture

• Bathmats

• Waffle Towels

• Sheared

• Bathrobe

• Lounge Chair Cover

• Body Wrap

• Poncho

• Infants Hooded Towels

• Hair Wrap

Bed Linen

The Bed Linen business operates through the Companys integrated manufacturing facility at Budhni, Madhya Pradesh. The business offers a diversified portfolio across premium, sustainable and fashion-oriented bedding solutions catering to both domestic and international markets. Continued emphasis on design development, innovation and quality has supported the Companys positioning across the global home textile market.

During the year, the Company focused on expanding trend-oriented offerings, enhancing customer engagement and strengthening

its product portfolio across premium and sustainable segments. Innovation-led developments included sheets with bio-based finishes for improved odour management and linen-look surface textures developed without the use of linen fibre.

The business also continued to benefit from investments in advanced manufacturing technologies, integrated production capabilities and digitalised operational systems supporting improved flexibility, product consistency and responsiveness to changing market requirements. Manufacturing capabilities were further strengthened through the installation of advanced rotary printing infrastructure supporting improved design precision, production scalability and enhanced printed bedding offerings. Automation initiatives including deployment of automatic flat and pillow stitching machines supported improved productivity, consistency and reduced manual intervention across cut, stitch and pack operations.

Product Portfolio

• Luxury

• Performance

• Sustainable

• BCI / Organic / Regenerative / Kasturi

• Egyptian / Supima / Pima

• Spa and Hotel

• Printed

• Dobby / Damask

• Waffle

• Kids

• Duvet / Comforter / Sheets / Pillow Cover

• Cotton Blends

Paper

Driven by increasing demand for sustainable and high-quality paper solutions, Tridents Paper business has built a strong presence across copier, writing and printing paper categories.

The business is widely recognised for its wheat straw-based manufacturing model and diversified product portfolio catering to educational institutions, corporates, commercial printing applications and retail consumers. Its integrated manufacturing operations and focus on product quality continue to support its positioning across domestic and export markets.

During the year, the business continued to strengthen its portfolio through development of premium, sustainable and speciality paper grades aligned with evolving customer requirements. Key product innovations during the year included the Titanium Line developed using agro-residue and wood waste-based furnish, Trident Gold Line for premium wedding card applications, Spectra A5 copier paper and premium copier grades with improved bulk, brightness and print performance. The business also continued to strengthen its capabilities across coating technologies, furnish optimisation, shade engineering and speciality applications through focused research and development initiatives.

The business undertook multiple manufacturing and technology initiatives during the year focused on automation, process optimisation and operational efficiency enhancement. Advanced DCS-integrated process controls, SAP-enabled dashboards, automated warehousing systems and real-time monitoring capabilities continued to support production efficiency, quality consistency and improved traceability across operations. The Company also continued to strengthen sustainable manufacturing practices through agro-based raw material utilisation, process optimisation and resource efficiency initiatives.

Brands

• Trident Spectra

• Trident My Choice

• Trident Royal Touch

• Trident Digi Print

• Trident Spectra Bond

• Trident Enviro

• Prime Smart

Writing and Printing Maplitho Paper - Product Portfolio ^ \

• Super Line

• Cartridge Paper

• Stiffener Paper

• Diamond Line

• Drawing Paper

• Platinum Line

• Silver Line

• Trident Royale

• Cup Stock

• Nature Line

• NL Coating (Sublimation Grade)

• Pearl Line

• Maplitho Watermark Paper

• Offset Printing Paper

• Cream Wove Paper

• Titanium Line

• Gold Line

Chemicals

Trident manufactures sulphuric acid for diverse industrial applications, including batteries, textiles, detergents, dyes, fertilisers, pharmaceuticals and other process industries. Its manufacturing facility at Dhaula, Punjab produces Battery, Commercial and high-purity Laboratory Reagent (LR/AR) grades, with specialised capabilities supported by borosilicate glass technology from De Dietrich Process Systems, Germany.

The production process follows Double Conversion Double Absorption (DCDA) technology aimed at efficient energy utilisation and lower emissions, supporting the Companys focus on operational excellence and environmentally responsible manufacturing practices.

Financial Performance

In FY 2025-26, Trident reported total income of INR 67,581 million, compared to INR 70,253 million in the previous year. EBITDA for the year stood at INR 9,445 million (with a margin of 14.0%) when compared to INR 9,611 million (13.7% margin) in previous year, driven by enhanced operational efficiencies and cost optimization initiatives. Finance costs declined by 12.5% to INR 1,133 million from INR 1,294 million, supporting a 10.4% increase in PBT to INR 5,184 million from INR 4,697 million. Consequently, PAT stood at INR 3,761 million, while EPS improved to INR 0.74 from INR 0.73 in the previous year. Cash profit was INR 6,889 million, compared to INR 7,288 million in the previous year. The balance sheet remained robust, with Net Debt/EBITDA maintained at a healthy 1.05x and Net Debt/Equity at 0.21x, reflecting a prudent and conservative leverage profile.

Dividend

In FY2025-26, the Company declared an Interim dividend of 50% on the face value of each equity share.

Segmental Revenues Yarn and Home Textiles

The revenue from Yarn and Home Textiles stood at INR 56,414 million, down from INR 59,579 million in FY2024-25

Paper and Chemicals

The revenue from Papers and Chemicals rose to INR 10,397 million in FY2025-26 from INR 10,079 million in FY2024-25

Balance Sheet Paid-up Capital

The total equity share capital remained unchanged at INR 5,096 million as of March 31, 2026 (the same as March 31, 2025)

Net Worth

The net worth of the Company increased to INR 47,571 million (as on March 31, 2026), compared to INR 46,103 million (as of March 31, 2025)

Key Financial Ratios and Other Parameters

Ratio	Formula	Unit	FY26	FY25	% Change
Debtors Turnover	Revenue (excluding government subsidy and export incentives) /Average Trade Receivables	Times	22.94	18.42	24.54%
Inventory Turnover	Cost of goods sold/ Average Inventory	Times	4.37	4.5	-3%
Interest Coverage Ratio	EBIT/Interest.	Times	5.58	4.63	21%
Current Ratio	Current Assets/Current Liabilities.	Times	1.56	1.98	-21%
Debt Equity Ratio	Total Debt (excluding lease liabilities)/Total Equity (excluding PPE fair valuation reserve and Effective portion of cash flow hedge)	Times	0.43	0.40	8%
Operating Profit Margin	EBIT/Total Sales.	%	9.45	8.60	10%
Net Profit Margin	PAT/Total Sales.	%	5.63	5.27	7%
Return on Net Worth	PAT/Net Worth.	%	7.91	7.96	-0.63%

Note: There is no variation of 25% or more in the Financial Ratios during the FY 2025-26 compared with previous year. Other key financial ratios and related information are provided in detail in Note 53 to the standalone financial statements.

Subsidiaries and Associate Company:

As on March 31, 2026, the Company has four subsidiaries, consisting of one wholly owned subsidiary and three step-down wholly owned subsidiaries. Details of these entities are provided in the Directors Report forming part of this Annual Report.

Further, during the financial year under review, the Company invested INR 250 crore in Trident Global Corp Limited (TGCL) on September 09, 2025, resulting in the acquisition of 30.42% of equity share capital of TGCL. Consequently, TGCL became an Associate Company of Trident Limited. The purpose of said acquisition was to secure immediate access to the domestic brand market, leverage existing Companys manufacturing for select categories, strengthen brand equity, and position the Company as multiple-category home solutions, to mitigate the geopolitical and to take benefit of Swadeshi movement.

A brief summary of financial performance of the Subsidiaries and

Associate Company is provided below. For more details, kindly refer

Form AOC-1 forming part of the Standalone Financial Statement.

- Trident Global Inc. achieved an annual turnover of INR 750.1 million and a net profit of INR 27.32 million.

- Trident Europe Limited reported a turnover of INR 59.74 million with a net loss of INR 19.28 million.

- Trident Group Enterprises Pte. Ltd. reported a turnover of INR 0.26 million and net loss of INR 13.17 million.

- THTL Trading LLC recorded a turnover of INR 9.54 million with a net loss of INR 42.38 million.

- Trident Global Corp Limited achieved a total income of INR 6,031.7 million and net profit of INR 364.4 million.

SWOT Analysis

Strengths

Diversified Business Portfolio - Presence across textiles, paper, chemicals and energy businesses provides revenue diversification and reduces dependence on a single segment.

• Integrated Manufacturing Operations - Vertically integrated facilities enhance efficiency, quality consistency and supply chain reliability.

• Global Home Textile Presence - Strong relationships with leading international retailers and brands across key export markets.

• Established Brand and Market Position - Strong customer trust supported by product quality, scale and longstanding industry presence.

• Advanced Manufacturing Infrastructure - Automation, digitisation and technology-led operations support productivity and operational excellence.

Strong Financial and Operational Resilience - Healthy liquidity, prudent procurement practices and a diversified business model support stability through market cycles.

Opportunities

• India-UK FTA and Emerging Trade Agreements -

Improved market access and tariff advantages may strengthen export competitiveness.

• Growing Demand for Sustainable Products - Rising preference for traceable and environmentally responsible products supports long-term growth.

• Premiumisation in Home Textiles - Increasing demand for value-added and differentiated products offers margin enhancement opportunities.

• Government Support for Manufacturing - PM MITRA,

PLI schemes and export promotion initiatives support industry growth.

• Domestic Consumption Growth - Urbanisation, rising incomes and housing demand support growth in home textile consumption.

• Digital Commerce Expansion - Growth in e-commerce and organised retail channels enhances consumer reach.

• Automation and Industry 4.0 - Technology adoption can improve productivity, efficiency and scalability.

Weakness

• Capital-Intensive Operations - Sustained investments are required for technology upgrades, sustainability initiatives and capacity enhancement.

• Resource-Intensive Manufacturing - Textile and paper operations require significant consumption of energy, water and raw materials.

• Dependence on Skilled Workforce - Large-scale manufacturing operations require continuous availability of skilled and technical talent.

• Export Market Exposure - A significant share of revenue remains linked to global demand conditions and trade policies.

• Logistics and Freight Sensitivity - Volatility in freight rates and shipping disruptions can impact costs and delivery timelines.

Threats

• Geopolitical and Trade Disruptions - Global conflicts and shipping disruptions may impact exports and supply chains.

• Intensifying Global Competition - Competition from low- cost manufacturing nations may exert pricing pressure.

• Input Cost Volatility - Fluctuations in cotton, pulp, fuel chemicals and energy prices can affect margins.

• Evolving Environmental Regulations - Increasing compliance requirements may lead to higher operating costs.

• Currency and Interest Rate Risks - Exchange rate movements and financing costs may impact profitability.

• Tariff and Policy Changes - Changes in international trade policies may affect export competitiveness.

Risk Management

Trident has implemented a robust and structured Risk Management System designed to safeguard the organisation against potential threats while enabling informed decisionmaking. An effective risk management approach begins with comprehensive planning, early identification and analysis of risks, timely implementation of corrective measures, and continuous monitoring and reassessment. This is supported by clear communication, thorough documentation, and coordinated efforts across the organisation. Risks at Trident are managed at two broad levels: Enterprise Risks and Operating Risks. These are further categorised into specific domains such as Operational Risks, Financial Risks, Regulatory Risks, Strategy Risks etc.

To enhance transparency and control, a digitised Risk Register is maintained, enabling systematic identification, assessment, periodic review, and tracking of mitigation plans. Each risk is assigned a Risk Score, calculated as the product of its likelihood and impact and Velocity, and is classified using a Risk Rating Matrix to prioritise mitigation efforts effectively. Every risk is assigned to a Risk Owner who is responsible for timely mitigation. These efforts are regularly reviewed by the Chief Risk Officer (CRO) to ensure ongoing relevance and responsiveness.

Our Enterprise Risk Management (ERM) processes are automated, enabling improved visibility, tracking, and governance. Risk management is embedded into the organisational culture, with responsibilities shared across functions, daily monitoring, periodic reviews, and reporting to the Risk Management Committee. This comprehensive approach fosters a proactive risk culture aligned

with our strategic objectives. For further details on risk management, kindly refer to Risk Management section of the Integrated Annual Report and Business Responsibility and Sustainability Report.

Human Resources

As a manufacturing-led organisation with large-scale operations across textiles, paper and chemicals, the Company places significant emphasis on building a skilled, agile and performance-oriented workforce capable of supporting operational excellence, business growth and long-term value creation. During FY2025-26, the Company strengthened its focus on leadership development, workforce capability enhancement, employee engagement and organisational culture in line with evolving business priorities and increasing focus on digitalisation and operational efficiency.

The Companys people strategy focuses on creating an enabling work environment supported by learning opportunities, performance-linked growth, employee welfare and capability development initiatives. Structured talent development frameworks, leadership programmes and institutional partnerships continued to support workforce readiness and long-term organisational capability building across businesses.

As of March 31, 2026, the Companys workforce comprised approximately 2,048 employees (including 1983 permanent employees) and 14,255 workers (including 9,577 permanent workers) across its manufacturing and administrative facilities.

Key HR Initiatives

Initiative	Focus Areas
Leadership Development and Succession Planning	i Strengthened leadership through the Takshashila internal development programme(s) and developed high potential talent from within, reinforcing succession strategy and cultural continuity
Performance and Reward Frameworks	Institutionalisation of pay-for performance through performance-linked rewards, quarterly incentive reviews and differentiated growth opportunities
Playing Captains	Introduce structured career paths empowering experienced Karamyogis to mentor peers and drive accountability
Learning and Capability Development	; Technical and managerial skilling programmes through partnerships with ITIs, educational institutions, skill development centres and industry partners
Industry- Academia Collaborations	Collaborations with Government ITIs, polytechnic institutes and external partners to strengthen workforce readiness and talent development
Employee Welfare Initiatives	Housing support, meal subsidy programmes, medical insurance coverage and wellness-focused employee support initiatives
Employee Engagement and Culture	Leadership connect forums, open communication platforms, grievance redressal mechanisms and initiatives promoting accountability and ownership
Workplace Safety and Preparedness	ISO 45001-certified safety systems, HIRA mechanisms, mock drills, emergency preparedness programmes and periodic safety trainings
Digitalisation and HR Governance	i Strengthening digital HR systems, structured performance monitoring and governance-driven people management practices
Grievances Redressal	Grievance redressal mechanism through KAAN, SAMEEP, ICC, Panchsabha, and whistle blower framework, ensure transparent and timely resolution of employees and workers concerns

The Company also maintained strong focus on workplace safety, employee well-being and governance practices across manufacturing locations. Its safety management framework is supported by periodic safety trainings, hazard identification and risk assessment mechanisms, internal audits and structured emergency preparedness programmes aimed at strengthening operational safety standards across facilities.

For further details on the initiatives, employee development programmes and safety practices, kindly refer to the Human Capital section of the Integrated Annual Report.

Internal Control Systems and Adequacy

The Company has implemented financial reporting controls that are commensurate with its scale and the nature of its industry. These controls and protocols are designed to safeguard assets, enhance operational efficiency and ensure accuracy in both operational processes and financial disclosures. A dedicated internal team, in coordination with the Audit Committee, continuously monitors business activities and promptly notifies the Management of any discrepancies. Insights from these reviews inform the Companys risk-assessment strategies, which identify, evaluate and mitigate potential threats. These internal controls support regulatory compliance, deter fraud and maintain transparency factors that help attract investment, bolster stakeholder confidence and drive sustainable growth.

During the year under review, M/s Deloitte Touche Tohmatsu India LLP and M/s Mahajan & Aibara Associates were engaged as Internal Auditors of the Company. They carried out the internal audit of the Companys operations and reported its findings to the Audit Committee. Internal auditors also evaluated the functioning and quality of internal controls and provided assurance of its adequacy and effectiveness through periodic reporting. Internal audit was carried out as per risk-based internal audit plan, which was reviewed by the Audit Committee and it periodically reviewed the findings and suggestions for improvement and was apprised of the implementation status in respect of the actionable items.

Cautionary Statement

This Management Discussion and Analysis Report may contain forward-looking statements, such as goals, estimates, projections and expectations of the Company, as defined under applicable laws and regulations. Actual results may differ materially from those expressed or implied in such statements due to various factors, including but not limited to changes in governmental regulations, tax laws, foreign exchange fluctuations, raw-material availability and pricing, cyclical demand and pricing in key market: and broader economic conditions in India and other jurisdictions where the Company operates. These factors should be carefully considered and readers are cautioned not to place undue reliance on forward-looking statements. The Company assumes no obligation to update any forward-looking statements, except as required by law.