Vasa Denticity Ltd Management Discussions

Management Discussion and Analysis Report

INDUSTRY STRUCTURE AND DEVELOPMENTS

Global Dental Market Overview

The global dental industry is undergoing rapid transformation, driven by technological advancements, increasing awareness of oral healthcare, rising demand for cosmetic and restorative dentistry, and expanding access to dental services across emerging markets. Innovations such as digital dentistry, CAD/CAM systems, intraoral scanners, 3D printing, dental lasers and AI-enabled diagnostic tools are enhancing treatment precision, reducing procedure time and improving patient outcomes. At the same time, manufacturers are focusing on sustainable materials, regulatory compliance and product quality to meet evolving global healthcare standards.

Dental equipment manufacturers, consumable suppliers and specialised distributors play a critical role in the industrys value chain by offering a wide portfolio of products, ensuring timely delivery, maintaining product authenticity and providing technical support and training to dental professionals. Companies with strong distribution networks, diversified product portfolios, digital procurement platforms and long-term relationships with global manufacturers are well positioned to capitalise on the growing demand for advanced dental solutions from clinics, hospitals and dental laboratories.

The industry is also witnessing strong growth in preventive oral care, dental implants, orthodontics and aesthetic dentistry, supported by rising disposable incomes, increasing dental insurance coverage in several markets and greater awareness of oral hygiene. The adoption of digital workflows and e-commerce platforms has improved operational efficiency and customer accessibility, enabling suppliers and service providers to expand their market presence.

The Company has shown a consistent rise in unique customers year on year: in FY 2025-26 the customer base grew 27.8% to 1.44 lakh active buyers, 70,746 new dentists were added to the platform - a 62% increase over the previous year - and 7.6 lakh orders were shipped across the country, mostly to Tier-2 and Tier-3 India where the category is structurally under-served.

Unique customers (000)	FY22	FY23	FY24	FY25	FY26
Active buyers in the year	40	65	92	113	144

Series restated on the ‘active buyers in the year basis; the FY25 investor presentation reported 1.055 lakh unique customers on the earlier basis.

Indian Economy Overview - General

Despite global economic uncertainties, India continues to remain one of the fastest-growing major economies, supported by strong domestic demand, resilient economic fundamentals, expanding services activity, and sustained government investment in infrastructure. The countrys growth is driven by rising private consumption, rapid urbanization, increasing digital adoption, and a favourable demographic profile, making India an attractive destination for domestic and international investment.

The Indian economy is broadly classified into three sectors-agriculture, industry, and services -with the services sector contributing the largest share to Gross Domestic Product (GDP), followed by industry and agriculture. Continued growth in manufacturing, healthcare, financial services, information technology, and consumer markets has strengthened the countrys economic resilience and diversified its growth drivers.

Government initiatives such as Make in India, Digital India, the Production Linked Incentive (PLI) Scheme, PM Gati Shakti, and Ayushman Bharat have accelerated infrastructure development, promoted domestic manufacturing, encouraged digital transformation, and improved access to healthcare services. These reforms, coupled with ongoing investments in transportation, logistics, renewable energy, and industrial corridors, are expected to enhance Indias long-term competitiveness and productivity.

Lower inflationary pressures and a supportive monetary policy environment are expected to encourage credit growth, private investment, and business expansion. Improved manufacturing competitiveness, aided by easing input costs, together with favourable agricultural output supported by normal monsoon conditions, is likely to strengthen overall economic activity. The Governments continued focus on fiscal consolidation and prudent financial management is expected to sustain investor confidence while creating additional opportunities for private sector participation in economic growth.

Although external challenges such as geopolitical tensions, global trade uncertainties, and weaker demand in advanced economies may affect merchandise exports and foreign investment flows in the short term, Indias strong domestic consumption, expanding services exports, and growing infrastructure investments are expected to support overall economic growth. Stable financial institutions, a large skilled workforce, increasing urbanization, and a rapidly expanding middle-class population continue to reinforce Indias position as one of the worlds most promising growth markets.

Overall, the Indian economy remains well-positioned for sustained long-term growth, providing significant opportunities across sectors, including healthcare, medical devices, pharmaceuticals, dental care, manufacturing, and technology-driven industries.

INDUSTRY OVERVIEW

Industry Structure & Developments

The Indian dental industry is characterised by fragmentation at the practice level but increasing organisation through chains, group practices, and specialty centres. From a supply perspective, the market comprises four interlinked segments:

1. Clinical equipment and devices (dental chairs, airotors, endomotors, autoclaves, intraoral cameras, imaging systems);

2. Consumables and restorative materials (composites, cements, impression materials, sutures, obturation materials, rotary files);

3. Digital dentistry and lab solutions (3D printing resins, CAD/CAM materials, milling blocks, scanners);

4. Specialty & implantology products (implants, prosthetics, orthodontic systems). Recent developments notable for distributors and trading platforms include: expanded product catalogues exceeding 20,000 SKUs; bundling of new- clinic setup services (equipment + disposables + training); and enhanced logistics capabilities reducing stock-out risks. Domestic manufacturers are scaling production for routine consumables while high-end devices still rely on global OEMs. This mix creates an opportunity for curated marketplaces to act as the trusted single-source supplier for clinicians.

Sector overview & market size - The dental supplies market in India is expanding steadily with demand across urban and fast- growing non-metro geographies. Key growth drivers include rising per-capita dental visits, increased cosmetic dentistry, expansion of private dental chains, and greater adoption of digital/3D workflows by labs and clinics. Consumables (single-use items, impression materials, restorative kits) generate recurrent revenue, while equipment sales (chairs, motors, imaging) provide higher-value but lower-frequency transactions. Platforms that combine both categories attract and retain customers through basket stickiness and recurring reorder behaviour. Employment & human capital - The dental ecosystems workforce expansion reflects higher clinic openings, greater lab activity, and growth in allied dental services (dental technicians, hygienists, lab technicians). For suppliers, the primary human capital focus is on building a trained sales force with product technical competency, a responsive customer support team for post-sale service, and logistics personnel skilled in handling medical/delicate equipment. Skill gaps remain in dental lab automation and specialised device servicing; thus, training partnerships with vendors and institutes are strategic priorities.

Digital transformation & technology adoption - Telemedicine, remote diagnostics, AI-enabled imaging, cloud health records, and digital supply-chain management have moved from pilot to scale. For suppliers and distributors (including dental supply marketplaces), investment in real-time inventory, last-mile logistics, tele-sales, and online B2B customer experiences is now table stakes. These capabilities are enhancing order frequency, reducing delivery times, and improving inventory turns. Dental industry - structure & trends - The dental market in India remains largely fragmented at the clinic level, with a growing emergence of speciality chains and group practices in metropolitan and tier-Il cities. Demand drivers include cosmetic dentistry, implantology, and increasing adoption of modern restorative materials and equipment. The manufacturing base for dental consumables and equipment is strengthening - domestic players are expanding production of clinical disposables, impression materials, temporary restoratives and certain lab-based prosthetics, while higher-end implants and specialised equipment continue to be supplied by global OEMs.

OPPORTUNITIES AND THREATS - Opportunities

1. Expanding Dental Industry: The Indian dental market continues to demonstrate robust growth fuelled by increasing global awareness of oral health, preventive care, and cosmetic dentistry. This expanding sector offers VASA Denticity Limited significant potential to grow its market presence and diversify its product offerings to meet rising demand.

2. Digital Health and E-Commerce Growth: The accelerating adoption of digital platforms and e-commerce within healthcare enables greater reach and convenience. VASA Denticitys strong online infrastructure and digital capabilities position the company to capitalize on increased online purchases of dental products and services.

3. Global Market Expansion: Leveraging its scalable online platform, the company is well- placed to enter new international markets. Expanding globally will not only diversify revenue streams but also mitigate risks associated with regional economic fluctuations.

4. Innovation and Technology Adoption: Rapid advancements in dental technology, including digital dentistry, AI- based diagnostics, and new dental materials, provide opportunities for the company to continuously upgrade its portfolio, attract premium clientele, and establish itself as a leader in innovative dental solutions.

5. Strategic Partnerships and B2B Collaborations: Collaborations with dental clinics, hospitals, dental institutes, and corporate chains can facilitate bulk sales, long-term contracts, and co-development of customized solutions, thereby strengthening market position and recurring revenue.

6. Sustainability Initiatives: Growing consumer and institutional interest in eco-friendly and sustainable dental products present an opportunity for VASA Denticity to innovate and market green solutions, enhancing brand reputation and meeting evolving environmental standards.

7. Rising Dental Tourism: Indias status as a cost-effective and quality destination for dental procedures continues to rise. This trend offers potential for the company to serve international patients and dental service providers accessing Indian dental products and equipment.

Threats:

1. Complex Regulatory Environment: Expansion across diverse regions involves navigating differing regulatory requirements. Compliance demands can be resource- intensive and pose challenges for timely market entry and operations.

2. Supply Chain Risks: Global supply chain uncertainties - including geopolitical tensions, logistics disruptions, and raw material shortages - could impact the companys ability to maintain product availability and meet delivery timelines.

3. Technological Disruption: The fast pace of innovation in dental technology requires continual investment in research and development. Failure to keep pace may render current offerings obsolete or negatively affect competitive advantage.

4. Intense Competition: The dental product market is highly competitive, with well- established players and emerging startups vying for market share. Sustaining differentiation through quality, innovation, and superior customer service is critical to maintaining market position.

5. Counterfeit and Substandard Product Infiltration: The growing online marketplace faces risks from counterfeit or low-quality products, which could harm the companys brand integrity and customer trust if not vigilantly managed.

6. Changing Consumer Preferences: Economic factors and shifts in dental care behaviours could alter purchasing patterns, requiring VASA Denticity to remain agile and responsive to evolving market needs.

7. Cybersecurity and Data Privacy: Increasing reliance on digital platforms heightens vulnerability to cyber threats and data breaches. Robust cybersecurity frameworks and compliance with data protection laws are imperative to safeguard customer information and maintain trust.

8. Economic Uncertainty and Price Sensitivity: Economic downturns or fluctuations may increase customer price sensitivity, potentially impacting sales volume and profitability margins. The company must balance competitive pricing strategies with sustainable profit management.

KEY PERFORMANCE HIGHLIGHTS

Over the years, The Company recorded consistent year-on-year growth in total orders fulfilled, reflecting robust demand, customer- trust, and operational scalability.

Our customer base continued to expand, with a steady rise in the number of unique customers served, underscoring the Companys widening market reach and brand acceptance.

FY26 At a Glance - Headline Performance (consolidated)

Revenue f278.87 Cr (+11.8%) + Other income f4.51 Cr = Total income f283.39 Cr (+12.8%). On continuing operations: +33% like-for-like. Reported EBITDA f15.43 Cr/Operating EBITDA f10.92 Cr (3.91%, ex-other income). EBITDA compression was driven by the H2 gross-margin decline and higher operating costs; recovery depends on own-brand availability, pricing and operating leverage in FY27. AH financial figures consolidated and audited; orders, customers and retention are internal management KPIs (unaudited). Quarterly order figures for FY26 were restated in the Q4 FY26 investor presentation to correct an internal error in the Q1 and H1 FY26 presentations, as explained on the Q1 FY27 earnings call.

Revenue from operations (Rs. Cr, consolidated)	FY22	FY23	FY24	FY25	FY26
Revenue	78.0	122.0	171.0	249.4	278.9

Strong Revenue Growth

Building on a 27.8% increase in our unique customer base to 1.44 lakh dental professionals, our revenue growth this fiscal year reflects the expanding trust and loyalty of the profession. This growth is a direct result of our comprehensive product range and quick fulfilment capabilities, ensuring customer satisfaction and repeat business.

Sustained Growth Driven by Customer Loyalty

With 68% of the FY26 new-customer cohort placing a repeat order within 180 days, our revenue growth is fuelled by consistent repeat purchases and a commitment to quality, reinforcing our market leadership in the dental supplies sector.

Efficiency and Scale Boosting Revenue

An average delivery time of 4.2 days across the country supports rapid access to essential dental supplies; the target remains a sub-48-hour national average with same-day delivery in Tier I cities.

Expanding Product Portfolio Supporting Revenue

Our extensive offering of approximately 23,000 unique dental products from around 470 domestic and international brands has opened new avenues for revenue growth, catering to a wide spectrum of customer needs.

Revenue Growth Backed by Quality Assurance

Stringent quality control and trust-first returns keep product returns low; return-related tickets fell from 23% to 16% of all customer tickets during the year.

Segment Performance - Where We Grew, Where We Exited (FY26 by segment)

Reported revenue Rs.249.4 Cr Rs. Rs.278.9 Cr (+11.8%). Like-for-like, excluding the segment we deliberately wound down: +33% YoY (Rs.210.4 Cr Rs. Rs.278.9 Cr).

Segment (Rs. Cr)	FY25	FY26	YoY
Dentalkart (Online Consumer)	185.2	232.2	+25%
Own Brand Offline (Waldent + Digital Dentistry)	25.2	46.7	+85%
Other-Brand Offline Trading (exited)	39.0	0.0	Exited
Total reported revenue	249.4	278.9	+ 11.8%
Continuing operations (ex-exited segment)	210.4	278.9	+33%

Segment revenue shown in audited consolidated revenue terms (ex-GST), including -K2.3 Cr from subsidiaries (Smileworks, Waldent, Dentalkart UK) allocated proportionally.

OUTLOOK Dental Tourism

The Indian dental market is poised for exponential growth with India emerging as a preferred global hub for dental products, materials and treatments. Dental tourism continues to accelerate as international patients seek the countrys high-quality and cost-effective dental care solutions. The convergence of advanced dental technologies, skilled professionals and competitive pricing strengthens Indias position as a leading destination for dental procedures worldwide.

Dental Treatment Cost

Rising dental treatment costs in developed countries, exacerbated by limited insurance coverage for many dental procedures, are driving more patients to seek affordable alternatives abroad. India offers a compelling value proposition, delivering premium-quality treatment at significantly lower costs, a trend expected to intensify and further stimulate demand from international and domestic patients alike.

VAST MARKET:

Indias dental ecosystem comprises over 5,000 dental laboratories and in excess of 300 dental institutes offering diverse oral healthcare education and services. This extensive infrastructure, combined with growing consumer awareness and rising incomes, supports a vast and rapidly expanding domestic market that positions India as a major producer and supplier of dental products and materials globally.

EXPECTED GROWTH:

The Indian dental market is forecast to register a compound annual growth rate (CAGR) exceeding 20% in the near term. Key growth drivers include increased investments in multispecialty hospitals, the proliferation of organized dental chains, technological innovation, and heightened public focus on oral health and aesthetics. This dynamic environment is expected to sustain strong industry momentum through FY 2026-27 and beyond.

ORAL CANCER CHALLENGE:

India continues to face the significant public health challenge of being the ‘oral cancer capital of the world. In 2023, oral cancer constituted nearly 30% of all cancer cases nationally, predominantly due to high tobacco consumption. This underscores the urgent need for intensified preventive health initiatives, early detection programs, and awareness campaigns to mitigate the impact on the populations oral and overall health.

GLOBAL VS. ASIAN MARKETS:

While the global dental materials market continues to grow steadily, the Asian market is expected to outpace global averages, with India leading this surge. Indias rising healthcare expenditure, expanding middle class, and increasing dental awareness are propelling its dental industry to a competitive leadership position within Asia. These factors collectively offer substantial opportunities to scale exports and integrate with wider regional markets.

VASA Denticity Limited remains strategically positioned to leverage these promising market dynamics. By continuing its focus on product innovation, market expansion, and addressing public health challenges such as oral cancer, the company is confident in sustaining growth and enhancing its contribution to Indias dental healthcare ecosystem in FY 2026-27.

RISKS AND CONCERNS

Given the wide scale of operations and the dynamic nature of the dental healthcare industry, VASA Denticity Limited is exposed to a broad spectrum of strategic, operational, financial, regulatory, and market-related risks. Our Company has established a comprehensive risk management framework aimed at identifying, analyzing, mitigating, and monitoring risks that could impact the achievement of our business objectives and operational performance.

The Board of Directors, through the Audit Committee, periodically reviews the risk heat map to assess high and critical risks facing the Company. The Committee guides and oversees the implementation of robust risk mitigation strategies, including risk avoidance, transfer, control measures, and continuous monitoring. The Companys risk governance combines formally documented policies in critical areas such as legal compliance, regulatory adherence, and treasury management, complemented by an informal approach for emerging operational threats.

Key risks include:

1. Regulatory and Compliance Risks: The industrys regulatory environment is complex and varies across jurisdictions. Non-compliance or delays in adhering to changing regulations can expose the Company to penalties, operational disruptions, and reputational damage.

2. Supply Chain Disruptions: Dependency on global and domestic suppliers for critical raw materials and equipment exposes the Company to risks from geopolitical tensions, logistical challenges, and raw material price volatility, which can impact product availability and cost structures.

3. Technological Innovation Risks: Rapid technological advancements require continuous investment in research and development to maintain competitiveness. Failure to innovate timely could result in loss of market share or obsolescence of existing product lines.

4. Market Competition: The dental healthcare sector is highly competitive, with both established and emerging players. Increased competition could pressure pricing, margins, and customer retention.

5. Quality Control and Counterfeit Product Risks: There is a risk of counterfeit or substandard products entering the market, particularly in online sales channels. Vigilant quality assurance and supply chain controls are essential to safeguard brand reputation and customer trust.

6. Cybersecurity and Data Privacy: As the Company increasingly leverages digital platforms and handles sensitive customer and business data, cybersecurity threats and data breaches pose significant risks. Compliance with data protection laws and implementation of stringent security measures are ongoing priorities.

7. Economic and Market Volatility: Macro-economic uncertainties, changes in consumer spending behavior, and fluctuations in input costs can impact sales and profitability. The Company remains vigilant in monitoring these external factors and adjusting its strategies accordingly.

8. Public Health Challenges: The high incidence of oral cancer and other oral health issues in India pose both a public health and market challenge. There are risks related to evolving healthcare policies, public awareness, and demand dynamics that the Company closely monitors to align its strategic responses.

In the opinion of the Board, none of the identified risks threaten the existence of the Company. However, continued focus on risk management and agility in responding to both anticipated and unforeseen challenges will be crucial in sustaining growth and safeguarding stakeholder interests.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

VASA Denticity Limited has established a robust internal control framework designed to safeguard the Companys assets and ensure the accuracy and reliability of its financial and operational information. Our internal control systems encompass a structured and comprehensive internal audit process that is entrusted with the responsibility of evaluating the effectiveness of controls, identifying gaps, and recommending improvements.

The internal audit function operates under the supervision of the Audit Committee of the Board of Directors, ensuring independence and objectivity in its assessments. Monthly business reviews are conducted to track operational performance and initiate corrective actions when necessary. Furthermore, capital expenditure is subject to stringent controls, with dedicated processes to authorize investments and ensure timely and budget-compliant project execution. To strengthen internal controls, the Company deploys a risk-based audit approach encompassing concurrent audits, thematic audits, exceptional reporting, and IT-enabled transaction controls. These measures are complemented by continuous management reviews and use of dashboards to monitor critical operational parameters and control effectiveness on an ongoing basis.

During the year under review, all internal controls were tested and evaluated rigorously. No material weaknesses were identified in the design or functioning of the internal control systems. Similarly, statutory auditors evaluations did not reveal any significant deficiencies or material misstatements attributable to a breakdown in internal controls.

The Company remains committed to continuously enhancing its control systems in alignment with evolving business requirements and regulatory expectations. This ongoing emphasis on control adequacy reassures stakeholders of the Companys robust governance and operational resilience.

FINANCIAL & OPERATIONAL PERFORMANCE

During the year under review, the Company continued to undertake its business of providing various dental products. The Companys standalone Income from Operations was Rs. 27,662.34 lakh as against Rs. 24,915.29 lakh in the corresponding previous year. The Company earned a Net Profit of Rs. 1,078.05 lakh during the year as against Rs. 1,708.92 lakh in the corresponding previous year.

Revenue expansion continued while profitability declined, reflecting gross-margin compression in the second half of the year from own-brand stock-outs and rupee depreciation on imported purchases, together with front-loaded investments in people, technology and fulfilment. Despite operating in a competitive dental products market, the Company continued to enhance its operational capabilities and strengthen its market presence.

Overall, FY 2025-26 was a year of investment: revenue grew, the customer base expanded at the fastest rate in the Companys history and the balance sheet remained debt-free, while margins were held back by operational factors that management is addressing in FY 2026-27.

The Financial Statements for the year ended 31 March 2026 have been prepared in accordance with the Companies Accounting Principles generally accepted in India, including the Accounting Standards prescribed under Section 133 of the Companies Act, 2013.

OPERATING DISCIPLINE

HUMAN CAPITAL

VASA Denticity Limited recognizes that its employees are the cornerstone of the Companys sustained growth and innovation in the dental healthcare sector. Our commitment to building a strong, skilled, and motivated workforce is reflected in our ongoing initiatives aimed at talent acquisition, retention, development, and fostering a vibrant workplace culture.

WORKFORCE & CULTURE:

With an emphasis on creating an inclusive and positive work environment, the Company continued to expand its talent pool during FY 2025-26. We prioritize employee well-being and career growth, fostering a culture of open communication, collaboration, and innovation. These efforts contribute to high employee engagement and a sense of belonging within the organization.

TALENT ATTRACTION AND RETENTION:

In the competitive healthcare and technology markets, attracting and retaining high-quality talent remains a key focus. VASA Denticity Limited has implemented contemporary recruitment strategies, leveraging diverse channels for outreach, including digital platforms, employee referrals, and campus engagements. Our proactive approach to diversity and inclusion helps us harness a broad range of skills and perspectives.

We offer competitive compensation frameworks, reward performance through targeted incentive programs, and provide career advancement opportunities. Employee retention is further supported by comprehensive learning and development initiatives designed to build capabilities and prepare employees for future leadership roles.

LEARNING AND DEVELOPMENT:

We invest significantly in continuous professional development to ensure our workforce stays abreast of the latest technological advancements and industry best practices. Training programs, workshops, and e-learning modules are regularly deployed, enabling skill enhancement and fostering an innovative mindset conducive to business growth and operational excellence.

Employee engagement initiatives remain a vital component of our human capital strategy. Regular feedback mechanisms, health and safety programs, and wellness campaigns are instituted to support employees holistic wellbeing. Our leadership team actively promotes a supportive climate that encourages creativity, accountability, and mutual respect.

DIVERSITY AND INCLUSION:

VASA Denticity Limited embraces diversity across gender, culture, and backgrounds. We are dedicated to cultivating an inclusive workforce that reflects the communities we serve, recognizing that diverse teams drive better decision making and business outcomes. As of March 31, 2026, the Companys permanent employee strength stands at 269, reflecting measured growth aligned with operational expansion and increasing market demands. Looking ahead, VASA Denticity remains committed to enhancing human capital capabilities by further strengthening talent management practices, promoting innovation, and building a sustainable, employee-centric workplace to support longterm business success.

INFORMATION TECHNOLOGY (IT)

In todays rapidly evolving dental healthcare landscape, Information Technology (IT) plays a crucial role in enhancing the operational efficiency and customer experience of VASA Denticity Limited. The Company has continuously invested in strengthening its IT infrastructure to support seamless business processes, data management, and digital innovation, enabling it to maintain a competitive edge.

Our robust IT systems integrate key business functions such as supply chain management, inventory control, order processing, customer relationship management, logistics, and financial reporting. This integration has helped in minimizing product shortages, reducing pilferage, avoiding out-of-stock situations, and enabling timely delivery of products to our customers. The Company leverages advanced data analytics and real-time dashboards to monitor critical operational metrics, facilitating prompt decision-making and enhancing transparency across departments. Moreover, IT enables efficient cash management and automates routine administrative tasks, contributing substantially to overall operational excellence.

VASA Denticity Limited prioritizes cybersecurity and data privacy, implementing stringent controls and protocols to safeguard sensitive customer and business information. Compliance with relevant data protection regulations remains a continual focus area, along with efforts to fortify defences against emerging cyber threats.

In line with its growth ambitions, the Company is committed to ongoing IT innovation, harnessing new technologies to improve user experience on its digital platforms and broaden its reach in domestic and international markets. Investments in automation, cloud computing, and AI-driven tools are planned to further streamline operations and support scalable business expansion.

Overall, IT forms the backbone of VASA Denticitys strategy to deliver superior service, optimize operational workflows, and maintain agility in a dynamic market environment.

KEY FINANCIAL RATIOS

S. No. Ratio	Numerator/Denominator	FY 2025-26
1 Current Ratio	Current assets/Current liabilities	8.19
2 Debt - Equity Ratio	Total debt/Shareholders equity	NA (no debt)
3 Debt Service Coverage Ratio	Earnings available for debt service/Debt service (interest on working-capital utilisation)	114.44
4 Return on Equity (ROE)	Net profit after tax/Shareholders equity	6.2%
5 Trade Receivables Turnover Ratio	Net credit sales/Trade receivables outstanding	24.07
6 Trade Payables Turnover Ratio	Net credit purchases/Trade payables outstanding	16.04
7 Net Capital Turnover Ratio	Net sales/Working capital	1.89
8 Net Profit Ratio	Net profit/Net sales	3.9%
9 Return on Capital Employed (ROCE)	Earnings before interest and taxes/Capital employed	8.11%

In FY 2025-26, the Company reported a current ratio of 8.19, indicating a strong liquidity position. The Company had no borrowings outstanding at the year-end, resulting in a debt-equity ratio of nil; the debt service coverage ratio of 114.44 is computed on the finance cost of Rs.12.37 lakh incurred on working-capital utilisation during the year. Return on equity stood at 6.2% (previous year 12.9%).

The trade receivables turnover ratio and trade payables turnover ratio were 24.07 and 16.04 respectively, indicating efficient collection and payment cycles. The net capital turnover ratio was 1.89, while the net profit ratio stood at 3.9% (previous year 6.9%). The return on capital employed was 8.11% (previous year 18.00%), reflecting the lower profitability in the year and the enlarged capital base following the conversion of warrants.