Umiya Mobile Ltd Management Discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Global Outlook of Industry in Which Company is Operating

The Company operates in the retail industry of mobile phones, accessories, and electronic products, a sector that continues to evolve rapidly in response to technological innovation, shifting consumer behavior, and digital transformation.

Globally, the demand for smartphones and consumer electronics remains strong, driven by increasing connectivity, adoption of 5G technology, and a growing preference for smart and connected devices. The mobile phone market, along with its ecosystem of accessories— such as earphones, smartwatches, power banks, and protective gear—has shown sustained growth across both developed and emerging economies.

The consumer electronics retail sector is being shaped by the increasing penetration of e- commerce platforms. However, physical retail stores continue to hold significant relevance, especially in developing markets, due to the need for in-person product experience, aftersales service, and customer trust.

In addition, the retail landscape is witnessing increased consumer interest in value-driven purchases, sustainability (such as refurbished or energy-efficient products), and brand loyalty programs. Retailers are investing in advanced technologies including AI-driven inventory systems, digital payments, and customer relationship management (CRM) tools to enhance operational efficiency and deliver a superior customer experience.

Regionally, Asia-Pacific leads in terms of market share and growth potential, fueled by rising disposable incomes, smartphone penetration, and expanding urban centers. India, in particular, represents a high-growth market due to a large, youthful population and growing digital infrastructure.

Indian Economy

Indias economic momentum remains strong, underpinned by resilient domestic demand and sustained macroeconomic stability. In FY2025-26, Real GDP (GDP at Constant Prices) is estimated to reach Rs.3,23,12,034 crore (US$ 3.66 trillion), rising from Rs.2,99,88,619 crore (US$ 3.55 trillion) in FY2024-25, reflecting a robust growth of 7.7%. At current prices, Nominal GDP is estimated to reach Rs.3,46,35,638 crore (US$ 3.92 trillion) in FY2025-26, from Rs.3,18,07,309 crore (US$ 3.76 trillion) in the previous year, registering a growth of 8.9%. On the production side, Real Gross Value Added (GVA) is estimated at Rs.2,94,91,088 crore (US$ 3.34 trillion), up from Rs. 2,73,36,495 crore (US$ 3.23 trillion) in FY 2024-25, indicating a growth of 7.9%, while Nominal GVA is estimated to expand to Rs.3,14,86,840 crore (US$ 3.56 trillion) from Rs. 2,88,54,467 crore (US$ 3.41 trillion), marking a growth of 9.1%. In Q3 FY26, Real GDP was estimated at Rs.84,64,935 crore (US$ 957.84 billion) against Rs.78,40,573 crore (US$ 927.22 billion) in Q3 FY25. In Q4 FY26, Real GDP increased to Rs.87,77,104 crore (US$ 993.16 billion) from Rs.81,39,598 crore (US$ 962.58 billion) in Q4 FY25, registering a growth of 7.8%, highlighting continued quarterly momentum.

India is undergoing a significant transformation, led by private consumption that is growing faster than the overall economy. The expanding middle income and lower-middle income segment is a key catalyst, pushing per capita GDP higher and accelerating demand for products and services that reflect evolving aspirations.

Indian Retail Industry Overview

Indias retail industry remained one of the countrys major growth sectors during FY 202526 (April 2025-March 2026). Growth was supported by rising household consumption, urbanization, increasing disposable incomes, digital payments, e-commerce, quick commerce and the expansion of organized retail into Tier-II and Tier-III cities. Indias retail sector contributes more than 10% of GDP and around 8% of employment, making it strategically important to the economy.

Indias overall retail market was estimated at approximately US$1.09 trillion in 2025 and is projected to exceed US$2.36 trillion by 2030. Organised retail is expected to account for more than 35% of the market by 2030, reflecting the gradual shift from traditional/unorganised retail toward modern retail formats.

Reliance Industries, Indias largest retailer, stated that the country is set to emerge as the worlds third-largest retail market by 2030, supported by government initiatives aimed at enhancing disposable incomes and driving consumption.

Private Final Consumption Expenditure (PFCE), a key indicator of consumer demand, was estimated at about Rs.219.6 lakh crore in FY26, representing an estimated 8.2% year-on- year increase in the First Advance Estimates. The Economic Surveys estimate was somewhat more conservative at 7% growth.

Rising purchasing power, especially among urban consumers, is reshaping spending patterns. Branded goods across categories such as apparel, cosmetics, footwear, watches, mobile, laptop, other electronics items, beverages, food, and jewellery are increasingly becoming part of everyday consumption and lifestyle.

Consumer preferences and buying behaviors in India are evolving rapidly, driven by greater access to technology and digital platforms. Shoppers increasingly expect seamless experiences across offline and online channels, prompting retailers to design integrated strategies that combine traditional stores with e-commerce platforms. Companies are also exploring innovative revenue models to enhance customer value and engagement.

The Indian electronics retail market is undergoing significant structural changes. Consumers are increasingly looking for technologically advanced and interconnected products rather than standalone devices. Premium products, artificial intelligence-enabled features, smart-home solutions and connected ecosystems are becoming important drivers of consumer demand.

The market consists broadly of:

• Multi-brand offline retailers

• Single-brand stores

• E-commerce marketplaces

• Brand-owned online channels

• Large-format retail stores

• Regional and local electronics dealers

• Omnichannel retailers

Electronics Industry Growth in India

Indias electronics industry has become one of the countrys fastest-growing manufacturing sectors, driven by smartphones, consumer electronics, IT hardware, telecom equipment, semiconductors and increasing exports. Electronics production grew 15.8% year-on-year in FY2025-26, from Rs.11.32 lakh crore to Rs.13.11 lakh crore.

Major drivers of growth

1. Smartphone manufacturing

Mobile phones have been the biggest success story. India is now the worlds second-largest mobile-phone manufacturer, with more than 300 manufacturing units compared with just two in 2014. Smartphones also became Indias largest export product in FY2025-26.

2. Government incentives

The government has used programmes such as Production Linked Incentive (PLI), SPECS, Electronics Manufacturing Clusters (EMC 2.0) and the Electronics Component Manufacturing Scheme (ECMS) to attract investment and increase domestic production.

3. Shift toward component manufacturing

India initially focused heavily on assembling finished products. The next stage is building domestic capabilities in PCBs, camera modules, displays, passive components, semiconductor packaging, materials and manufacturing equipment. The ECMS is specifically designed to deepen this supply chain.

4. Semiconductor investment

Semiconductors are becoming a major strategic priority. As of July 2026, 12 semiconductor manufacturing projects had been approved with committed investment exceeding Rs.1.64 lakh crore. The government has also approved Semicon 2.0 with a Rs.1.275 lakh crore outlay.

5. Export opportunities

The electronics manufacturing ecosystem now supports approximately 25 lakh direct and indirect jobs. Mobile manufacturing alone accounts for around 12 lakh jobs.

Mobile Industry Growth in India — FY 2025-26

Indias mobile-phone industry showed mixed growth during FY 2025-26. While the number of smartphones sold remained broadly flat, the value of the market increased, mainly because consumers increasingly purchased premium and higher-priced smartphones. The industry also continued to benefit from local manufacturing, 5G adoption, digitalization and Indias growing role as an electronics-export hub.

The Government of India reported that mobile-phone production reached Rs.6.27 lakh crore in FY 2025-26, compared with Rs.18,900 crore in FY 2014-15. Mobile exports reached Rs.2.60 lakh crore, up from Rs.1,566 crore in FY 2014-15. Mobile phones also became Indias largest export product in FY 2025-26.

According to Counterpoint Research, Indias smartphone market in calendar year 2025 grew approximately 1% in shipment volume and 8% in market value. This indicates that growth was driven more by premiumisation and higher average selling prices than by an increase in the number of devices sold.

Major reasons for the 2025-26 changes

1. Premiumization-Consumers are buying fewer low-cost phones but spending more on premium models.

2. AI smartphones - Generative AI and on-device AI are becoming important differentiators.

3. 5G adoption - 5G continues to drive replacement and upgrade cycles.

4. Foldables - A small but rapidly growing category; IDC expects foldable shipments to grow about 20% in 2026 even while the overall smartphone market contracts.

5. Memory-chip costs - Higher memory prices are putting significant pressure on smartphone manufacturers, particularly in budget devices.

6. Changing consumer behavior - Longer replacement cycles and weaker entry-level demand are limiting unit growth.

7. Mobile ecosystem growth - Beyond handsets, 5G, mobile apps, cloud services, IoT and AI are expanding the overall mobile economy. In Asia-Pacific, mobile technologies and services generated about $1 trillion of economic value in 2025.

The industry is becoming more value-driven rather than volume-driven. Budget smartphones are facing pressure, while premium phones, AI capabilities, foldable, 5G and mobile services are creating new growth opportunities.

Business Overview of the Company

Umiya Mobile Limited is engaged in the multi-brand retail sector, specializing in the sale of smartphones, mobile accessories, and consumer durable electronic products, etc. Over the years, the company has built a reputation as a trusted retailer offering a wide array of products from some of the global brands. Our product range includes the latest smartphones from Apple, Samsung, Realme, Xiaomi, Oppo, Vivo, Motorola, Google Pixel, Infinix etc. We also offer consumer electronics, such as Smart TVs, Air Conditioners, Refrigerators, Coolers, and more, from brands like Sony, LG, Panasonic, Godrej and others.

Further, the company operates its retail business with multiple brands. The company have a portfolio of retail stores with different brands. The company had initially started its business operations with brand "Umiya Mobile", for company owned stores as well as franchise stores. Further, the company has establish a new group named "LEELA MOBILE" as part of its strategic business expansion and operational development. The newly formed group will operate under the ownership and management of Umiya Mobile Limited.

The company operates a total of 400 plus stores across the state of Gujarat, Maharashtra, Madhya Pradesh, Union Territory of Dadra and Nagar Haveli and Daman and Diu, with a widespread geographic presence and accessibility to a large customer base.

The Company has well experienced and knowledgeable Directors, Key Management Personnel,

Accounts team and Sales & Marketing team which are the backbone of Companys growth. The Companys retail stores are offering discounts, incentives, schemes etc. from time to time to increase revenue and profitability. The business of the Company is operating in varieties of franchise model considering win-win situations for Company as well as Franchise Partners. The Company has always tried its best to maintain the trust of its stakeholders including customers and is continuously making its best efforts to increase the turnover and profit of the Company.

The multi-brand electronic retail sector is an important component of Indias organized retail industry. Multi-brand retailers offer products from several manufacturers under one roof, allowing customers to compare brands, specifications, prices, financing options and after-sales services before making a purchase.

Multi-brand retailers have an important competitive advantage because they provide customers with the ability to compare multiple brands and products at the same location.

Industry forecasts also indicate continuing opportunities for multi-brand stores because of their product variety, service capabilities and after-sales support.

Furthermore, we ensure that all electronic products come with warranties from the respective manufacturers. In the event of a defect, we have established a seamless process with our suppliers to ensure that customers receive free replacements or servicing, further reinforcing our commitment to quality and customer satisfaction.

Our stores operate under various business models designed to meet the diverse needs of our customers i.e. owned stores and retails outlets.

Operational and Financial performance

During the Financial Year 2025-2026, the Company recorded a Revenue Turnover of Rs. 8,360,968.70 thousand as compared to previous year revenue from operation of Rs. 5,600,791.61 thousand. Profit after tax was Rs. 91,937.15 thousand during the year under review as compared to profit after tax of Rs. 55,068.49 thousand of previous year.

Key Growth Drivers

a. Rising disposable income

Increasing household incomes and urbanisation are supporting consumer spending on smartphones, televisions, home appliances, computers and other electronic products.

b. Premiumisation

Consumers are increasingly willing to spend more on products offering better performance, design, connectivity and advanced features. The movement toward premium and AI- powered products was a significant feature of Indias consumer electronics market in 2025.

c. Digitalisation

Growing internet penetration, digital payments, 5G adoption and e-commerce have increased consumer awareness and accessibility of electronic products.

d. Financing and EMI schemes

Consumer financing, credit cards, no-cost EMI schemes and buy-now-pay-later options make relatively expensive electronic products more affordable. This is particularly important for televisions, smartphones, laptops and large appliances.

e. Expansion into Tier-II and Tier-III cities

Smaller cities are becoming important growth markets. Consumers in these markets continue to value physical stores because product demonstrations, sales assistance, installation and after-sales service reduce purchase uncertainty. Recent industry analysis also highlights the continuing importance of offline retail in smaller towns.

f. Smart-home adoption

Connected televisions, smart appliances, smart speakers, security products and wearable devices are creating opportunities for retailers to sell multiple products as part of an integrated ecosystem.

The major management priorities should include:

Product assortment: Retailers need to maintain an appropriate mix of entry-level, midrange and premium products. Excessive dependence on one category or brand can increase business risk.

Inventory management: Electronics have relatively short product life cycles. Rapid technological changes can make older models obsolete and force retailers to offer discounts. Effective demand forecasting and inventory monitoring are therefore essential.

Pricing strategy: Customers can easily compare prices online. Consequently, retailers need competitive and transparent pricing while protecting margins through accessories, warranties, installation, financing and other value-added services.

Vendor management: Strong relationships with manufacturers and distributors can improve product availability, promotional support, credit terms and access to new product launches.

Customer experience: Physical stores must provide demonstrations, knowledgeable sales staff and easy product comparison. KPMGs India CX Report 2025 found that the purchase stage was considered the most impactful stage by 55% of customers in electronic stores. Flexible delivery and transparent pricing were among the highest-rated experience parameters.

Competitive Environment

Competition in the sector is intense because retailers compete not only with other physical stores but also with e-commerce platforms, brand-owned stores and emerging quick- commerce businesses.

The competitive environment can be analyzed using Porters Five Forces:

Force	Assessment	Impact
Competitive rivalry	High	Price competition and promotional activity reduce margins
Buyer power	High	Customers can easily compare prices and specifications
Supplier power	Medium to High	Major brands have strong influence over products and pricing
Threat of new entrants	Medium	Digital retail lowers entry barriers, but physical scale requires capital
Threat of substitutes	Medium	Online marketplaces and direct-to- consumer channels compete with stores

Large organized retailers are increasingly using their store networks as fulfilment centers and investing in data analytics, AI and hyper-local commerce. Reliance Retail, for example, identifies omnichannel scale, AI/analytics, consumer electronics and expansion into Tier- II/HI markets as important strategic areas.

Major Risks and Challenges

a. Margin pressure

Heavy discounting and online price transparency can reduce gross margins.

b. Inventory obsolescence

New product launches can rapidly reduce the value of older inventory.

c. High operating costs

Rent, employee costs, utilities, logistics and store maintenance can significantly affect profitability.

d. Online competition

E-commerce platforms provide extensive product selection and aggressive pricing, creating pressure on traditional retailers.

e. Supply-chain disruptions

Electronics retailers depend on complex domestic and international supply chains. Currency fluctuations, component shortages and geopolitical disruptions can affect availability and costs.

f. Rapid technological change

Retailers must continuously update product knowledge, store displays and inventory to keep pace with new technologies.

g. Working-capital requirements

Large inventories and extended credit arrangements can increase working-capital requirements.

Opportunities

The sector presents several attractive opportunities:

• Expansion into Tier-II and Tier-III cities.

• Growth in smartphones, laptops and wearables.

• Increasing adoption of smart-home products.

• Premium televisions and home appliances.

• Consumer financing and extended warranty products.

• Installation and after-sales services.

• Omnichannel retailing.

• Private-label and exclusive products.

• Data-driven personalised promotions.

• Corporate and institutional electronics sales.

Quick-commerce companies are also beginning to explore rapid delivery of larger electronic products such as televisions, refrigerators, washing machines and microwaves, which could create a new competitive dimension for traditional retailers.

SWOT Analysis

Strengths	Weaknesses
Wide range of brands	High inventory investment
Product comparison under one roof	High rental and operating costs
Physical product demonstration	Margin pressure
Personalized sales assistance	Risk of obsolete inventory
After-sales support	Dependence on manufacturers
Opportunities	Threats
Tier-II and Tier-III expansion	E-commerce competition
Premium electronics	Aggressive price discounting
Smart-home ecosystem	Rapid technological changes
Omnichannel retail	Quick-commerce expansion
Consumer financing	Supply-chain disruptions
Data analytics and AI	Changing consumer preferences

Disclosure of Accounting Treatment

The Company has followed all the treatments in the Financial Statements as per the prescribed Accounting Standards.

Internal Control Systems and Its Adequacy

The Companys internal control systems are commensurate with the nature of its business and the size and complexity of its operations. The internal controls cover operations, financial reporting, compliance with applicable laws and regulations, safeguarding assets from unauthorized use and ensure compliance of corporate policies. The Audit Committee of the Board of Directors also periodically reviews audit plans, external auditor observations and recommendations, significant risk area assessments and adequacy of internal controls.

Human Resources/Industrial Relations Front

The Company believes that people are its strongest asset and a primary source of competitive advantage. Its HR strategy is aligned with long-term business goals and emphasizes:

• Attracting and retaining the best talent.

• Providing growth opportunities, training, and skill development.

• Fostering a culture of performance, work-life balance, and employee well-being.

Management staff are provided with in-house and external training programs to strengthen both technical and managerial competencies. The Company continues to enjoy cordial industrial relations and looks to the future with confidence.

Outlook

Umiya Mobile Limited is on a strong growth trajectory, and we are confident that our turnover will reach Rs.1,200 crore in the coming years. Currently, we operate across 3 states with 400+ stores. Going forward, we plan to expand into new markets, including Chhattisgarh, Mumbai, and other states.

We aim to further strengthen our retail network by expanding to approximately 500 to 600 stores. With continuous expansion, a strong business model, and increasing market presence, Umiya Mobile Limited is steadily moving forward as a fast-growing and strong company.

The medium-term outlook for Indias multi-brand electronics retail sector remains positive, supported by rising consumption, premiumisation, digitalization, expansion of organized retail and demand from smaller cities.

However, future success is unlikely to depend solely on opening more physical stores. Retailers will need to combine physical stores, digital channels, efficient supply chains, competitive pricing, financing, customer service and data-driven decision-making.

The strongest retailers are likely to follow an integrated model in which stores function not only as sales outlets but also as experience centers, service points and local fulfilment hubs.

By Order of the Board of Directors
For, UMIYA MOBILE LIMITED
KISHORBHAI JADWANI	GIRISHKUMAR JADVANI
MANAGING DIRECTOR	WHOLE TIME DIRECTOR
DIN: 06460690	DIN: 06452836
DATE: SEPTEMBER 02, 2026
PLACE: RAJKOT