Valplast Technologies Ltd Management Discussions

VALPLASTTECHNOLOGIES LIMITED

1. FORWARD-LOOKING STATEMENTS

This Management Discussion and Analysis contains ("MD&A") certain forward-looking statements relating to the Companys business, operations, financial performance, growth prospects and future outlook. Such statements are based on the Companys present expectations, assumptions and estimates and are subject to various risks and uncertainties. Actual results may differ materially from those expressed or implied due to changes in economic conditions, regulatory environment, market conditions, project execution, competition and other factors beyond the Companys control.

2. BUSINESS OVERVIEW

Valplast Technologies Limited is engaged in providing specialised waterproofing and allied infrastructure solutions, with expertise in waterproofing of underground structures, tunnels, hydraulic structures, dams, channels, shafts and other civil infrastructure. The Companys service portfolio also includes injection and preinjection grouting, thermoplastic lining and geomembrane applications, spray-applied waterproofing and membranes, concrete reconstruction, coastal protection, slope protection and related electromechanical and tunnel automation solutions.

The Company has developed technical capabilities in specialised infrastructure applications and continues to focus on delivering quality, technically sound and reliable solutions to its customers. The Companys operations are primarily aligned with the infrastructure and construction ecosystem, where specialised waterproofing and structural protection solutions are critical to the durability and performance of infrastructure assets.

3. INDUSTRY STRUCTURE AND DEVELOPMENTS

The infrastructure sector continues to provide opportunities for specialised engineering and construction service providers. Increasing development of transportation infrastructure, tunnels, hydro and hydraulic projects, underground structures and other large-scale infrastructure creates demand for specialised waterproofing, grouting, protection and rehabilitation solutions.

The Companys specialised technical capabilities and experience in waterproofing and allied infrastructure services position it to participate in such opportunities. The Company remains focused on maintaining quality standards, strengthening execution capabilities and expanding its presence across relevant infrastructure segments.

4. FINANCIAL PERFORMANCE

The Company recorded a strong improvement in its financial performance during FY 2025-26. Revenue from operations increased to Rs.10,235.68 lakh from Rs.6,325.12 lakh in the previous year, representing growth of approximately 61.82%. Total income increased to Rs.10,333.79 lakh from Rs.6,453.04 lakh.

Profit before tax increased to Rs.1,357.11 lakh as against Rs.822.05 lakh in FY 2024-25, while Profit after tax increased to Rs.930.93 lakh from Rs.611.63 lakh. Earnings per share improved to Rs.5.49 from Rs.4.24. The improvement reflects the Companys growth in operating revenues and overall business performance during the year.

5. OPPORTUNITIES

The Company believes that opportunities for growth exist in specialised infrastructure services, particularly in tunnel construction and rehabilitation, waterproofing of underground and hydraulic structures, injection and preinjection grouting, geomembrane applications, coastal protection and slope protection.

The Companys established technical capabilities and diversified service offerings provide a platform to pursue opportunities arising from infrastructure development and increasing requirements for durable and specialised protection systems. The Company intends to strengthen its execution capabilities, optimise utilisation of resources and pursue sustainable business growth.

6. RISKS AND CONCERNS

The Companys business is subject to risks inherent in the infrastructure and construction sector, including project execution risks, delays in project completion, fluctuations in the cost and availability of materials, competitive pressures, regulatory changes, working capital requirements and dependence on prevailing infrastructure spending.

The Company has established mechanisms for identification, assessment and monitoring of key business risks. Identified risks are reviewed periodically by the management and the Board, and appropriate mitigating measures are undertaken. Based on the assessment made by the Board, no risk has been identified which may threaten the existence of the Company.

7. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company maintains appropriate internal control systems and monitoring procedures commensurate with the nature, size and complexity of its operations. The internal control framework is designed to safeguard assets, ensure proper authorisation and recording of transactions, maintain reliable financial records and support compliance with applicable policies and laws.

The Statutory Auditors have also reported on the Companys internal financial controls over financial reporting, including their design and operating effectiveness.

8. IPO AND CAPITAL POSITION

During FY 2025-26, the Company successfully completed its Initial Public Offering and raised Rs.28.09 crore. The Companys equity shares were subsequently listed on the SME platform of BSE Limited effective 8 October 2025. The Companys paid-up equity share capital increased from Rs.14.43 crore to Rs.19.63 crore following the fresh issue of 52,02,000 equity shares.

During the year, the Company also reviewed the utilisation schedule of a portion of the IPO proceeds. The proposed capital expenditure towards purchase of machinery was deferred to FY 2026-27 considering the efficient utilisation of existing machinery. Subsequently, the members approved variation in utilisation of specified IPO proceeds towards General Corporate Purposes and Working Capital through Postal Ballot on 28 June 2026, subject to applicable provisions and approvals.

9. OUTLOOK

The management remains optimistic about the Companys future prospects. VaIplast intends to leverage its technical expertise, existing capabilities and experience in specialised waterproofing and allied infrastructure services to pursue new business opportunities and strengthen its market position.

The Companys focus will remain on disciplined project execution, operational efficiency, prudent financial management, strengthening customer relationships and effective utilisation of resources. The management believes that these initiatives will support sustainable growth and long-term value creation for shareholders and other stakeholders.

10. HUMAN RESOURCES

The Company recognises its employees and technical personnel as an important component of its continued success. The management remains committed to maintaining a professional work environment and strengthening technical and managerial capabilities required for efficient execution of specialised infrastructure projects.

11. SEGMENT-WISE PERFORMANCE

The Companys operations are primarily focused on specialised waterproofing and allied infrastructure services. Accordingly, the Companys performance is evaluated as a single business activity and separate segment-wise reporting is not considered applicable.

12. CAUTIONARY STATEMENT

Statements made in this Management Discussion and Analysis describing the Companys objectives, expectations, estimates or predictions may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied due to various factors, including changes in economic conditions, government policies, regulatory requirements, market conditions, project execution, competition and other factors beyond the Companys control. The Company undertakes no obligation to publicly update or revise any forward-looking statements, except as may be required under applicable law.