Vedant Poly Fabs Ltd Management Discussions

CONDITIONS AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations for the Stub Period ended June 30, 2026, financial years ended on March 31, 2026, 2025 and 2024 is based on, and should be read in conjunction with, our Restated Financial Statements, including the schedules, notes and significant accounting policies thereto, included in the chapter titled "Restated Financial Statements" beginning on page 286 of this Red Herring Prospectus. Our Restated Financial Statements have been derived from our audited financial statements and restated in accordance with the SEBI ICDR Regulations and the ICAI Guidance Note. Our financial statements are prepared in accordance with AS.

You should read the following discussion of our financial condition and results of operations in conjunction with our Restated financial statements attached in the chapter titled "Financial Information" beginning on page 286 included in this Red Herring Prospectus. You should also read the section titled "Risk Factors" on page 30 and the section titled "ForwardLooking Statements" on page 28 of this Red Herring Prospectus, which discusses a number of factors and contingencies that could affect our financial condition and results of operations. Our Financial Statements, as Restated have been derived from our audited Financial Statement for the respective years. The following discussion relates to us, and, unless otherwise stated or the context requires otherwise, is based on our Restated Financial Statements.

Our financial statements have been prepared in accordance with Indian GAAP, the Companies Act and the SEBI (ICDR) Regulations and restated as described in the report of our auditor which is included in this Red Herring Prospectus under "Financial Statements" on Page 286. Our financial year ends on March 31 of each year, and all references to a particular financial year are to the twelve-month period ended March 31 of that year.

In this section, unless the context otherwise requires, any reference to "we", "us" or "our" refers to Vedant Poly Fabs Limited, our Company. Unless otherwise indicated, financial information included herein are based on our "Restated Financial Statements" for Fiscal Year.

Note: Statement in the Management Discussion and Analysis Report describing our objectives, outlook, estimates, expectations or prediction may be "Forward Looking Statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to our operations include, among others, economic conditions affecting demand/supply and price conditions in domestic and overseas market in which we operate, changes in Government Regulations, Tax Laws and other Statutes and incidental factors.

Business Overview

Our Company was originally incorporated on December 10, 2018 as a Private Limited Company in the name and style of "Vedant Poly Fabs Private Limited" under the provisions of the Companies Act, 2013 vide Certificate of Incorporation bearing CIN: U25209WB2018PTC229187 issued by the Registrar of Companies, Kolkata. Further, our Company was converted into a Public Limited Company pursuant to Special Resolution passed by the shareholders of our Company at the Extra- Ordinary General Meeting held on August 07, 2025, and consequently the name of our Company was changed from "Vedant Poly Fabs Private Limited" to "Vedant Poly Fabs Limited" and a fresh certificate of incorporation dated August 21, 2025 pursuant to conversion from Private Limited Company to Public Limited Company was issued by the Registrar of Companies, Central Registration Centre bearing CIN: U25209WB2018PLC229187. For details of change in the name of our Company and address of registered office of our Company, see "History and Certain Corporate Matters" on Page No. 237 of this Red Herring Prospectus.

We are engaged in the manufacturing of flexible packaging materials and operate as a business-to- business (B2B) supplier to customers across India. We have obtained ISO 9001:2015 certification and are also certified under ISO 22000:2018 and HACCP standards.

Our product portfolio includes multilayer Low-Density (LD) films such as 3-layer and 5-layer films, shrink films, barrier films, printed laminates, and milk and oil pouches. These products are used for packaging applications across industries, including food and beverages and other consumer products.

BUSINESS SEGMENTS

We manufacture products based on customer specifications, including size, thickness, material composition and printing requirements. Our operations are carried out through multiple stages such as extrusion, printing, lamination, slitting and pouching at our manufacturing facility.

Our facility is equipped with the necessary machinery to undertake these processes within our premises, including multilayer extrusion machines and printing machines such as CI (Central Impression) flexo and rotogravure. This enables us to carry out manufacturing activities in an integrated manner and cater to varied product requirements.

Our products are supplied to customers for further packaging and distribution of their products across various industries.

In addition to our manufacturing operations, we are also engaged in the trading of billet strips, which are used across industries such as engineering, fabrication and manufacturing. Our trading activities are undertaken on a bill-to-ship basis, wherein materials are supplied directly from vendors to customers based on customer requirements, without maintaining inventory at our facility.

Revenue from Business Segments (Amt. in Rs. Lakhs)

Segments	June 2026	% of Revenue	Fiscal 2026	% of Revenue	Fiscal 2025	% of Revenue	Fiscal 2024	% of Revenue
Lamination	2,217.71	73.22	6,818.32	59.22	2,703.23	33.36	120.81	2.44
Printed Plastic	560.5	18.51	3,651.53	31.72	1,758.49	21.70	1,648.50	33.28
Milk Film	183.84	6.07	381.28	3.31	256.38	3.16	130.59	2.64
Shrink Film	52.59	1.74	148.97	1.29	312.49	3.86	218.00	4.40
Billets Strips	0	0.00	418.11	3.63	3,017.72	37.25	2,779.65	56.12
Scrap Sales	14.14	0.47	95.7	0.83	53.79	0.66	55.91	1.13
Total	3,028.78	100.00	11,513.91	100.00	8,102.12	100.00	4,953.46	100.00

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

For details in respect of Statement of Significant Accounting Policies, please refer to Significant Accounting Policies and Notes to accounts, "Note 02" beginning under Chapter titled "Restated Financial Statements" beginning on page 286 of this Red Herring Prospectus.

Principle Components of our Restated Statement of Assets & Liabilities

FY 2025-26 Compared with FY 2024-25:

(Amount in 2 Lakhs)

Particulars	As at March 31,2026	As at March 31,2025	Increase / (Decrease) Amount	Increase / (Decrease) %
Liabilities
Long Term Borrowings	1,198.92	205.17	993.75	484.35
Short Term Borrowings	3,482.62	1,126.68	2,355.94	209.10
Trade Payables	167.93	2,140.47	(1,972.54)	(92.15)
Assets
Inventories	2,428.88	1,540.53	888.35	57.67
Trade Receivables	2,837.54	2,977.85	(140.31)	(4.71)

Reasons for Change:

Long-Term Borrowings: Long-term borrowings increased by Rs. 993.75 lakhs (484.35%), from Rs. 205.17 lakhs in FY 2024-25 to Rs. 1,198.92 lakhs in FY 2025-26. The increase is entirely attributable to term loans and NBFC borrowings availed to fund the large capital expenditure of Rs. 2,227.02 lakhs on new manufacturing infrastructure, specifically a new flexible packaging converting line commissioned during FY 2025-26. The secured term loans from banks increased to Rs. 759.60 lakhs and loans from financial institutions (NBFCs) stood at Rs. 439.32 lakhs.

Short-Term Borrowings: Short-term borrowings increased by Rs. 2,355.94 lakhs (209.10%), from Rs. 1,126.68 lakhs in FY 2024-25 to Rs. 3,482.62 lakhs in FY 2025-26. This increase is primarily driven by the enhancement of cash credit and working capital facilities from Rs. 981.39 lakhs to Rs. 3,124.94 lakhs commensurate with the substantial increase in manufacturing volumes and the resultant higher raw material procurement and trade receivables. The current maturities of long-term borrowings classified under short-term borrowings also increased by Rs. 212.39 lakhs on account of the new term loans availed.

Trade Payables: Trade payables declined sharply from Rs. 2,140.47 lakhs in FY 2024-25 to Rs. 167.93 lakhs in FY 2025-26, a reduction of Rs. 1,972.54 lakhs (92.15%). The large creditor balance in FY 2024-25 was primarily on account of high trading activity with settlement of goods procured for resale pending as at year-end. As our Company substantially wound down its trading business in FY 2025-26, the corresponding trading payables were settled, resulting in the sharp decline. In days outstanding, trade payables stood at approximately 5 days in FY 2025-26 as against 96 days in FY 2024-25.

Inventories: Inventories increased by Rs. 888.35 lakhs (57.67%), from Rs. 1,540.53 lakhs in FY 2024-25 to Rs. 2,428.88 lakhs in FY 2025-26. The increase reflects the build-up of raw materials (LDPE, LLDPE, polyester film) and work-in-progress to support the expanded manufacturing operations of the new converting line. Raw material inventory increased to Rs. 658.30 lakhs, WIP to Rs. 1,075.38 lakhs, and finished goods to Rs. 695.20 lakhs. Inventory holding days increased from 69 days in FY 2024-25 to approximately 77 days in FY 2025-26, reflecting the longer manufacturing cycle associated with increased production.

Trade Receivables: Trade receivables marginally declined from Rs. 2,977.85 lakhs in FY 2024-25 to Rs. 2,837.54 lakhs in FY 2025-26, a reduction of Rs. 140.31 lakhs (4.71%), despite higher revenues, indicating improved collections. In days outstanding, trade receivables improved from approximately 134 days in FY 2024-25 to approximately 90 days in FY 2025-26, reflecting better debtor management. Debts outstanding for more than six months stood at Rs. 201.08 lakhs as at March 31, 2026, all considered good and recoverable.

FY 2024-25 Compared with FY 2023-24:

(Amount in Z Lakhs)

Particulars	As at March 31,2025	As at March 31,2024	Increase / (Decrease) Amount	Increase / (Decrease) %
Liabilities
Long Term Borrowings	205.17	325.65	(120.48)	-37.00%
Short Term Borrowings	1,126.68	309.59	817.09	263.93%
Trade Payables	2,140.47	786.61	1,353.86	172.11%
Assets
Inventories	1,540.53	617.16	923.37	149.62%
Trade Receivables	2,977.85	839.99	2,137.86	254.51%
Cash and Cash Equivalents	50.13	12.83	37.30	290.72%

Reasons for Change:

Long-Term Borrowings: Long-term borrowings decreased by H20.48 lakhs i.e. 37.00%, from Rs. 325.65 lakhs in FY 2023-24 to Rs. 205.17 lakhs in FY 2024-25. The decrease reflects scheduled repayments of existing term loans during the year. Our Company continued its regular repayment schedule, reducing the long-term component of borrowings even as short-term working capital facilities were enhanced to support the growing business scale.

Short-Term Borrowings: Short-term borrowings increased by Rs. 817.09 lakhs i.e. 263.93%, from Rs. 309.59 lakhs in FY 2023-24 to Rs. 1,126.68 lakhs in FY 2024-25. The significant increase is primarily driven by the enhancement of cash credit and working capital borrowing limits from AU Small Finance Bank and HDFC Bank to support the rapidly growing manufacturing operations and the consequent higher working capital requirements in raw material procurement, WIP and finished goods build-up.

Trade Payables: Trade payables increased by Rs. 1,353.86 lakhs (172.11%), from Rs. 786.61 lakhs in FY 2023-24 to Rs. 2,140.47 lakhs in FY 2024-25. The increase is primarily attributable to the significant growth in trading revenues in FY 2024-25 ( Rs. 3,017.73 lakhs), with a significant portion of traded goods procured near the year-end remaining outstanding as payables. In manufacturing operations, increased raw material procurement also contributed to the higher creditor balance. Days outstanding increased from 58 days to 96 days.

Inventories: Inventories increased by Rs. 923.37 lakhs (149.62%), from Rs. 617.16 lakhs in FY 2023-24 to Rs. 1,540.53 lakhs in FY 2024-25. This significant build-up reflects the accelerated growth in manufacturing activity, with WIP increasing to Rs. 683.04 lakhs to feed the growing production pipeline, raw materials to Rs. 253.97 lakhs, and finished goods to Rs. 603.52 lakhs. Inventory holding days increased from approximately 45 days in FY 2023-24 to 69 days in FY 2024-25, reflecting the longer manufacturing cycle associated with increased production.

Trade Receivables: Trade receivables increased sharply by Rs. 2,137.86 lakhs (254.51%), from Rs. 839.99 lakhs in FY 2023-24 to Rs. 2,977.85 lakhs in FY 2024-25. This is directly attributable to the 63.56% growth in revenue from operations during FY 2024-25. The increase in days outstanding from 62 days to 134 days reflects the longer credit periods extended to customers in line with the growing manufacturing customer relationships and the associated invoicing cycle.

KEY PERFORMANCE INDICATORS ("KPIs")

Our Company confirms that it shall continue to disclose all the KPIs included in this section on a periodic basis, at least once in a year (or any lesser period as determined by the Board of our Company), for a duration of one year after the date of listing of the Equity Shares on the Stock Exchange or till the complete utilization of the proceeds of the Fresh Offer as per the disclosure made in the "Objects of the Offer" Section beginning on Page no. 133 whichever is later or for such other duration as may be required under the SEBI ICDR Regulations.

The KPIs disclosed below have been approved by a resolution of our Audit Committee dated September 09, 2026 and the members of the Audit Committee have verified the details of all KPIs pertaining to our company. Further, the members of the Audit Committee have confirmed that there are no KPIs pertaining to our Company that have been disclosed to any investors at any point of time during the three years period prior to the date of filing of this Red Herring Prospectus. Further, the KPIs herein have been certified by M/s Jain Sonu & Associates, Chartered Accountants, by their certificate dated September 10, 2026, who hold a valid certificate issued by the Peer Review Board of the ICAI. The

Statutory Auditors certificate dated September 10, 2026 has been included in the section Material Contracts and Documents for Inspection beginning on Page no. 460 of this Red Herring Prospectus.

The KPIs disclosed below have been used historically by our Company to understand and analyze the operational and the financial performance, which in result, helps it in analyzing the growth of various verticals in comparison to its listed peers, and other relevant and material KPIs of the business of our Company that have a bearing on arriving at the Basis for Offer Price have been disclosed below.

The Applicants can refer to the below-mentioned Key Performance Indicators, being a combination of financial and operational Key Performance Indicators, to make an assessment of our Companys performances and make an informed decision.

Financial KPI of our Company-

Sr. No.	Metrix	For the Stub Period	As of and for the Fiscal
		30/06/2026 A	2026	2025	2024
1	Revenue From Operation ( Rs. in Lakhs)	3,028.78	11,513.91	8,102.12	4,953.46
2	Operating EBITDA ( Rs. in Lakhs)	659.11	1,900.12	774.24	128.59
3	Operating EBITDA Margin (%)	21.76%	16.50%	9.56%	2.60%
4	Profit/(loss) after tax for the year/period ( Rs. in Lakhs)	347.81	1,096.62	456.06	63.59
5	Net profit Ratio / PAT Margin (%)	11.48%	9.52%	5.63%	1.28%
6	Return on Equity (ROE) (%)	7.92%	38.03%	47.31%	20.97%
7	ROCE (%)	8.93%	30.65%	43.66%	16.94%
8	Return on Assets (ROA) (%)	3.50%	14.32%	12.28%	4.83%
9	Net Capital Turnover Ratio	1.39	8.37	12.78	14.17
10	Quick Ratio	1.12	0.88	0.82	0.83
11	Net worth ( Rs. in Lakhs)	4,560.38	4,225.70	1,542.10	385.78

K Not Annualized

Notes:

As certified by Jain Sonu & Associates, Chartered Accountants pursuant to their certificate dated

September 10, 2026 the Audit committee in its resolution dated September 09, 2026 has confirmed

that our company has not disclosed any KPIs to any investors at any point of time during the three

years preceding the date of this Red Herring Prospectus other than as disclosed in this section.

1) Revenue from Operations means the Revenue from Operations as appearing in the Restated

Financial Statements.

2) Operating EBITDA refers to earnings before interest, taxes, depreciation, amortization, gain or loss from discontinued operations and exceptional items. Operating EBITDA excludes other income.

3) Operating EBITDA Margin refers to operating EBITDA during a given period as a percentage of revenue from operations during that period.

4) Profit and Loss after Tax refers to Net Income or Total Profit of the Company after paying all expenses.

5) Net Profit Ratio/Margin quantifies our efficiency in generating profits from our revenue and is calculated by dividing our net profit after taxes by our revenue from operations.

6) Return on equity (ROE) is equal to profit for the year divided by the total average equity during that period and is expressed as a percentage.

7) RoCE (Return on Capital Employed) (%) is calculated as Earnings Before Interest and Tax divided by total average equity plus non-current liabilities (i.e. Tangible Net worth + Total Debt+ Deferred Tax Liabilities).

8) Return on Assets (ROA) is equal to profit for the year divided by the total assets at the end of the period and is expressed as a percentage.

9) The Net Capital Turnover Ratio measures how efficiently a business uses its working capital to generate sales. It is calculated by dividing net annual sales (or cost of goods sold) by the average working capital.

10) Quick Ratio measures the ability to meet short-term obligations (debts due within one year) using its most liquid assets-Current Assets excluding Inventories and is calculated by dividing the Current Assets excluding Inventories by current liabilities.

11) Net worth is a measure of an individuals or organizations financial health, calculated by subtracting total liabilities from total assets.

Set forth the description of historic use of the KPIs by our Company to analyse, track or monitor the operational and/or financial performance of our Company.

For evaluation our business, we consider that the KPIs, as presented above, as additional measures to review and assess our financial and operating performance. These KPIs have limitations as analytical tools and presentation of these KPIs should not be considered in isolation or as a substitute for the Restated Financial Information. Further, these KPIs may differ from the similar information used by other companies, including peer companies, and hence their comparability may be limited. Although these KPIs are not a measure of performance calculated in accordance with applicable accounting standards, our Companys management believes that it provides an additional tool for investors to use our operating results and trends and in comparing our financial results with other companies in our industry as it provides consistency and comparability with past financial performance.

KPI	Explanations
Revenue from Operations	Revenue from Operations is used by our management to track the revenue profile of the business and in turn helps assess the overall financial performance of our Company and Size of our business.
Operating EBITDA	Operating EBITDA provides information regarding the operational efficiency of the business.
Operating EBITDA Margin	Operating EBITDA Margin is an indicator of the operational profitability and financial performance of our business.
Profit After Tax for the year	Profit after tax provides information regarding the overall profitability of the business.
Net Profit Ratio/PAT Margin	PAT Margin is an indicator of the overall profitability and financial performance of our business.
Return on Equity (ROE)	ROE provides how efficiently our Company generates profits from shareholders\u2019 funds.
Return on Capital Employed	ROCE provides how efficiently our Company generates earnings from the capital employed in the business.
Return on Assets (ROA)	Return on Assets (ROA) is equal to profit for the year divided by the total assets at the end of the period and is expressed as a percentage.
Net Capital Turnover Ratio	The Net Capital Turnover Ratio measures how efficiently a business uses its working capital to generate sales. It is calculated by dividing net annual sales (or cost of goods sold) by the average working capital.
Quick Ratio	Quick Ratio measures the ability to meet short-term obligations (debts due within one year) using its most liquid assets\u2014Current Assets excluding Inventories and is calculated by dividing the Current Assets excluding Inventories by current liabilities.
Net worth	Net worth is a measure of an individual\u2019s or organization\u2019s financial health, calculated by subtracting total liabilities from total assets.

The Companys Quick Ratio stood at 1.12,0.88, 0.82 and 0.83 as at stub period ended June 30,2026 and FY2026, FY2025 and FY2024, respectively, and has remained marginally below 1.00 primarily due to the nature of its working capital cycle. During the stub period ended June 2026 it stood at 1.12. During FY2024 and FY2025, the Company benefited from extended credit terms from suppliers for the purchase of raw materials and traded goods, resulting in comparatively higher trade payables and consequently a lower Quick Ratio. In FY2026, the Company strategically increased its inventory of raw materials and work-in-progress in anticipation of uncertainties relating to the availability and pricing of key raw materials to ensure uninterrupted production and timely execution of customer orders. As

inventories are excluded from the computation of the Quick Ratio, this increase also contributed to the ratio remaining below 1.00. Gradually the supply chain conditions and raw material price volatility are improved and expected to stabilize going forward, reducing the need for maintaining elevated inventory levels. Further, the proposed infusion of funds through the IPO is expected to strengthen the Companys working capital position and overall liquidity, thereby improving the Quick Ratio. The management continuously monitors its working capital requirements, maintains adequate banking arrangements and optimizes inventory and receivable management to effectively mitigate short-term liquidity risks and ensure that all operational and financial obligations are met as they fall due.

SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO LAST AUDITED BALANCE SHEET

In the opinion of the Board of Directors of our Company, there have not arisen, since the date of June 30, 2026, any circumstances that materially and adversely affect or are likely to affect the profitability of our Company or the value of its assets or its ability to pay its material liabilities within the next twelve months except the following: -

Appointment of Chief Financial Officer- Mr. Sunil Bihani resigned from the post of CFO and Mr. Arijit Mondal was appointed as the new Chief Financial Officer (CFO) w.e.f. September 08, 2026.

Factors affecting our Business:

Our business is subjected to various risks and uncertainties, including those discussed in the section titled "Risk Factors" beginning on page no. 30 of this Red Herring Prospectus. Our results of operations and financial conditions are affected by numerous factors including the following:

?€? General economic and business conditions in the markets in which we operate and in the local & regional economies;

?€? Changes in Industry Requirements;

?€? New Innovation of our product portfolio, from time to time;

?€? Changes in government policies resulting high taxes payable by us;

?€? Changes in laws and regulations that apply to the industries in which we operate;

?€? Impact of Russia-Ukraine War and Israel - Hamas War on our business and operations;

?€? General economic, political, and other risks that are out of our control;

?€? Inflation, deflation, unanticipated turbulence in interest rates, equity prices or other rates or prices;

?€? Companys ability to successfully implement its growth strategy and expansion plans;

?€? Occurrence of Environmental Problems & Uninsured Losses;

?€? The performance of the financial markets in India and globally.

?€? Performance of Companys competitors.

?€? Our ability to maintain tie-ups or collaboration agreement with our partners;

?€? Our dependence on limited number of customers/suppliers/brands for a significant portion of our revenues

?€? Rapid Technological advancement and inability to keep pace with the change

?€? Our ability to retain and hire key employees or maintain good relations with our workforce

?€? Occurrence of natural or man-made disasters could adversely affect our results of operations and financial condition

?€? Failure to obtain any applicable approvals, licenses, registrations and permits in a timely manner Discussion on Result of Operations

The following discussion on results of operations should be read in conjunction with the Restated Financial Statements for the stub period ended June 30, 2026 and for the financial year ended on 31st March, 2026, 31st March, 2025 and 31st March, 2024.

VEDANT POLY FABS LIMITED ERSTWHILE: VEDANT POLY FABS PRIVATE LIMITED CIN: U25209WB2018PLC229187 Restated Statement of Profit & Loss

Particulars	Note No.	For the Quarter ended June 30th, 2026 Amount Rs in Lakhs	/o of Total Income	For the year ended March 31,2026 Amount Rs in Lakhs	% of Total Income	For the year ended March 31,2025 Amount Rs in Lakhs	% of Total Income	For the year ended March 31,2024 Amount Rs in Lakhs	% of Total Income
A INCOME
Revenue from Operations	19	3,028.78	99.33%	11,513.91	99.85%	8,102.12	99.32%	4,953.46	99.61%
Other Income	20	20.38	0.67%	17.56	0.15%	55.84	0.68%	19.46	0.39%
I TOTAL INCOME		3,049.16	100.00%	11/531.47	100.00%	8,157.97	100.00%	4,972.92	100.00%
B EXPENSES			0.00%
Cost of Materials consumed	21	1,755.43	57.57%	8,969.80	77.79%	4,671.48	57.26%	1,899.59	3820%
Purchase of Stock in Trade	22	0.00	0.00%	417.59	3.62%	3,004.80	36.83%	2,775.19	55.81%
Change in Inventories of Finished Goods, Work-In-Progress & Stock in Trade	23	457.08	14.99%	(484.03)	-4.20%	(832.65)	-1021%	(137.98)	-2.77%
Employee Benefit Expenses	24	45.48	1.49%	223.57	1.94%	162.02	1.99%	99.31	2.00%
Finance Cost	25	97.93	3.21%	220.48	1.91%	119.61	1.47%	40.45	0.81%
Depreciation & Amortization Expenses	11	116.87	3.83%	254.85	2.21%	65.04	0.80%	2728	0.55%
Other Expenses	26	108.18	3.55%	456.63	3.96%	306.29	3.75%	182.98	3.68%
II TOTAL EXPENSES		2/580.98	84.65%	10,058.90	87.23%	7,496.59	91.89%	4,886.83	98.27%
PROFIT BEFORE EXCEPTIONAL
m AND EXTRAORDINARY ITEMS AND TAX (I- II)		468.19	15.35%	1,472.57	12.77%	661.38	8.11%	86.09	1.73%
IV EXCEPTIONAL ITEM				-		-
PROFIT BEFORE EXTRAORDINARY ITEMS AND TAX (III-IV)		468.19	15.35%	1,472.57	12.77%	661.38	8.11%	86.09	1.73%
VI Extraordinary items Income/ (Expenses)						-
VII PROFIT BEFORE TAX(V-VI)		468.19	15.35%	1,472.57	12.77%	661.38	8.11%	86.09	1.73%
VIII TAX EXPENSE:
(1) Current tax
- Provision for Income Tax		119.96	3.93%	382.82	3.32%	201.91	2.48%	19.30	0.39%
(2) Deferred Tax
- Deferred Tax liability Created/ (Revei	sal)	0.42	0.01%	(6.86)	-0.06%	3.41	0.04%	320	0.06%
Total of Tax Expenses		120.38	3.95%	375.96	3.26%	205.32	2.52%	22.50	0.45%
IX PROEIT/(LOSS) FOR THE YEAR (VII-VIII)		347.81	11.41%	1,096.62	9.51%	456.06	5.59%	63.59	1.28%

Revenue from Operations:

Our Company is engaged in the manufacture and supply of flexible packaging products including poly laminates, printed plastic packaging materials (for milk, dahi, lassi and similar dairy products), and Aluminium foil laminates. Our products cater to the food and beverage, dairy, and consumer goods industries. Our Company also undertakes limited trading of flexible packaging materials; however, this has been progressively phased out in favor of manufacturing-led revenues. Our revenue from operations during the Stub Period ended June 30, 2026 and the Financial Year ending 2025-26, Financial Year ending 2024-25, and Financial Year ending 2023-24 are 99.33%, 99.85%, 99.32%, and 99.61% of total income respectively. In actual terms, revenue from operations is Rs. 3,028.78 in Stub Period ended June 30, 2026, Rs. 11,513.91 lakhs in FY 2026, Rs. 8,102.12 lakhs in FY 2025, and Rs. 4,953.46 lakhs in FY 2024.

Other Income:

Our other income primarily consists of interest received on fixed deposits, discount received, delivery charges, rent received, profit on sale of fixed assets, and liability written off. Other income of Rs. 20.38 lakhs, Rs. 17.56 lakhs, Rs. 55.84 lakhs, and Rs. 19.46 lakhs were reported for Stub Period ended June 30, 2026, FY 2025-26, FY 2024-25, and FY 2023-24 respectively. The higher other income in FY 2024-25 was primarily on account of a non-recurring consultancy fee of Rs. 28.39 lakhs and liability written off of Rs. 18.00 lakhs.

Expenses:

Companys expenses consist of Cost of Materials Consumed, Purchase of Stock-in-Trade, Change in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade, Employee Benefits Expense, Finance Cost, Depreciation and Amortization Expense, and Other Expenses.

Cost of Materials Consumed:

Cost of Materials Consumed comprises the cost of raw materials consumed in the manufacturing process, primarily LDPE plastic granules, LLDPE plastic granules, metallocene plastic granules, polyester film, HM/HD plastic granules, and other allied materials. This line reflects the raw material cost for manufacturing operations only and is to be read alongside Purchase of Stock-in-Trade for the complete picture of material costs.

Purchase of Stock-in-Trade:

Purchase of Stock-in-Trade represents flexible packaging products. Billets Strips are also procured for direct resale without further processing. As our company transitions to a full manufacturing model, this line has declined sharply from Rs. 2,775.19 lakhs in FY 2023-24 and Rs. 3,004.80 lakhs in FY 2024-25 (last significant year of trading) to Rs. 417.59 lakhs in FY 2025-26, and in stub period ended June 30, 2026 was NIL.

Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade:

Changes in inventories of finished goods, WIP and stock-in-trade represent the difference between closing and opening stock. A negative figure (credit to P&L) indicates that closing stock exceeds opening stock, meaning production during the year exceeded sales, with the excess absorbed into inventory.

Employee Benefits Expense:

Our Employee Benefits Expense primarily comprises Salaries and Wages, Directors Remuneration, Employers Contribution to EPF and ESI, and Staff Welfare Expenses.

Finance Costs:

Our finance cost includes interest expense on term loans from banks and NBFCs, interest on cash credit and overdraft facilities, and loan processing and other charges.

Depreciation and Amortization Expenses:

Depreciation includes depreciation on Plant and Machinery (including the new converting line), Factory Building, Furniture and Fixtures, Computer and Peripherals, and Office Equipment.

Other Expenses:

Our Other Expenses consist of Production Expenses (comprising electricity expenses, stores and consumables, carriage inward, fuel expenses, job work expenses, and factory insurance), Administrative Expenses (comprising professional and legal charges, rates and taxes, repairs and maintenance, office expenses, subscription and donations, security charges, and other administrative costs), and Selling and Distribution Expenses (comprising delivery charges, discount allowed, advertisement and business promotion expenses, and other selling costs).

Summary of major items of Income and Expenditure:

Revenue from Operations: We are engaged in the manufacture and supply of flexible packaging products. Our revenue from operations during the Stub Period ended June 30, 2026 and Financial Year ending 2025-26, Financial Year ending 2024-25, and Financial Year ending 2023-24 are 99.33%, 99.85%, 99.32%, and 99.61% of total income respectively. In terms of actual numbers, revenue from operations is Rs. 3,028.78 lakhs in Stub Period ended June 30, 2026, Rs. 11,513.91 lakhs in FY 2025-26, Rs. 8,102.12 lakhs in FY 2024-25, and Rs. 4,953.46 lakhs in FY 2023-24.

Other Income: The other income majorly includes interest received, discount received, delivery charges, rent received, and profit on sale of assets. Other income of Rs. 20.38 Lakhs, Rs. 17.56 lakhs, Rs. 55.84 lakhs, and Rs. 19.46 lakhs reported for Stub Period ended June 30, 2026, FY 2025-26, FY 2024-25, and FY 2023-24 respectively.

Total Expenses: Our total expenses encompass the following: (i) Cost of Materials Consumed, (ii) Purchase of Stock-in-Trade, (iii) Change in Inventories of Finished Goods, WIP and Stock-in-Trade, (iv) Employee Benefits Expense, (v) Finance Cost, (vi) Depreciation and Amortization Expenses, and (vii) Other Expenses.

Cost of Materials Consumed: The cost of raw materials consumed (RM consumed) was Rs. 1,755.43 Lakhs in Stub Period ended June 30, 2026, Rs. 8,969.80 lakhs in FY 2025-26, Rs. 4,671.48 lakhs in FY 202425, and Rs. 1,899.59 lakhs in FY 2023-24. In terms of proportion to total income, it represents 57.57%, 77.79%, 57.26%, and 38.20% in Stub Period Ended June 30, 2026, FY 2025-26, FY 2024-25, and FY 2023-24 respectively. The sharp increase in proportion reflects the transition from trading to manufacturing.

Purchase of Stock-in-Trade: Purchase of Stock-in-Trade was NIL in Stub period ended June 30, 2026, Rs. 417.59 lakhs in FY 2025-26, Rs. 3,004.80 lakhs in FY 2024-25, and Rs. 2,775.19 lakhs in FY 2023-24. In proportion to total income, it represents NIL, 3.62%, 36.84%, and 55.80% in the respective years, reflecting the progressive wind-down of trading activity.

Change in Inventories: The change in inventories (increase in closing stock) in closing stock reported Rs. 457.08 lakhs in Stub period Ended June 30, 2026 and Rs. 484.03 lakhs in FY 2025-26, Rs. 832.65 lakhs in FY 2024-25, and Rs. 137.98 lakhs in FY 2023-24. In proportion to total income, it represents 14.99% (4.20%), (10.21%), and (2.77%) respectively, indicating maintaining of stocks to meet growing demand.

Employee Benefit Expenses: Employee Benefit Expenses were Rs. 45.48 lakhs, Rs. 223.57 lakhs, Rs. 162.02 lakhs, and Rs. 99.31 lakhs for Stub Period ended June 30, 2026, FY 2025-26, FY 2024-25, and FY 202324 respectively. In terms of proportion to total income, it represents 1.49%, 1.94%, 1.99%, and 2.00% respectively.

Finance Costs: Finance costs were Rs. 97.93 lakhs, Rs. 220.48 lakhs, Rs. 119.61 lakhs, and Rs. 40.45 lakhs for Stub Period ended June 30, 2026, FY 2025-26, FY 2024-25, and FY 2023-24 respectively. In terms of proportion to total income, it represents 3.21%, 1.91%, 1.47%, and 0.81% respectively. Finance costs have increased in line with the increase in borrowings availed to fund manufacturing expansion and working capital growth.

Depreciation and Amortization Expenses: Depreciation was Rs. 116.87 lakhs, Rs. 254.85 lakhs, Rs. 65.04 lakhs, and Rs. 27.28 lakhs for Stub Period ended June 30, 2026 and FY 2025-26, FY 2024-25, and FY 2023-24 respectively. The significant increase in FY 2025-26 is attributable to the capital expenditure of Rs. 2,227.02 lakhs on the new investment in property, Plant and Equipment during the year.

Other Expenses: Other expenses of our Company were Rs. 108.18 lakhs, Rs. 456.63 lakhs, Rs. 306.29 lakhs, and Rs. 182.98 lakhs for Stub period ended June 30, 2026, FY 2025-26, FY 2024-25, and FY 2023-24 respectively. In proportion to total income, other expenses stood at 3.55% in Stub Period ended June 30, 2026, 3.96% in FY 2025-26, 3.75% in FY 2024-25, and 3.68% in FY 2023-2

Financial performance highlights for stub period ended on June 30 th , 2026:

Total Income : Total Income for the stub period ended June 2026 stood at Rs. 3,049.16 lakhs which consists of Revenue from Operations of Rs. 3,028.78 lakhs and other income of Rs. 20.38 lakhs.

Revenue from Operations : Revenue from operations stood at Rs. 3,028.78 lakhs representing 99.33% of the total income of Rs. 3,049.16 lakhs. The revenue was predominantly derived from West Bengal, which contributed Rs. 2,901.79 lakhs, representing 95.81% of the total revenue from operations, maintaining a reputable base in home state.

Our Companys geographical revenue profile indicates a progressive increase in sales from markets outside West Bengal over the years. While West Bengal continues to be the principal market, the contribution from other states has increased consistently, reflecting our Companys expanding geographical reach.

During the stub period ended June 30, 2026, our Company generated Rs. 126.99 lakhs from markets outside West Bengal, representing 4.19% of revenue from operations. The contribution from Uttar Pradesh and Bihar has also strengthened, with these two states together contributing 3.73% of revenue during the stub period.

The geographical bifurcation of the revenue is given below: -

State-wise Revenue Bifurcation i					Amount in Rs. Lakhs
Sl. No.	States	April 01, 2026- June 30, 2026	% of Total	Fiscal 2026	% of Total	Fiscal 2025	% of Total	Fiscal 2024	% of Total
1	West Bengal	2,901.79	95.81	11,145.48	96.80	7,932.01	97.90	4,886.33	98.64
2	Uttar Pradesh	75.08	2.48	116.85	1.01	-	-	8.62	0.17
3	Bihar	37.93	1.25	85.79	0.75	89.2	1.10	23.05	0.47
4	Assam	11.72	0.39	6.60	0.06	5.29	0.07	-	-
5	Odisha	1.17	0.04	3.06	0.03	5.75	0.07	5.02	0.1
6	Gujarat	0.30	0.01	-	-	-	-	-	-
7	Others	0.79	0.03	156.13	1.35	69.87	0.86	30.44	0.62
	Total	3,028.78	100.00	11,513.91	100.00	8,102.12	100.00	4,953.46	100.00

Other Income : Other Income during the stub period ended June 30, 2026 stood at Rs. 20.38 lakhs earned majorly from discount received of Rs. 6.30 lakhs, rent of Rs. 3.12 lakhs & liability written off worth Rs. 8.90 lakhs.

Total Expenses: - Total Expense during the stub period ended June 30, 2026 stood at Rs. 2,580.97 lakhs. Our total expenses encompass the following - (i) Cost of Raw Materials Consumed (ii) Purchase of Traded Goods (iii) Change in Inventories of Finished Goods, Work in Progress & Stock in Trade (iv) Employee benefits expense, (v) Finance Cost, (vi) Depreciation and Amortization Expenses (vii) Other Expenses.

Combined Material Cost Efficiency: - The Companys combined material cost efficiency stood at Rs. 2,212.51 and as a proportion of total income it was 72.56%. Raw-Material includes lamination films, plastic granules, inks, polyster film, cylinder, tolvin, etc. The purchase of stock in trade consists of billets/strips.

The table below sets forth the components of our combined material cost efficiency:

Particulars	Stub period ended June 2026 (Amount Rs. in lakhs)
Cost of material consumed	1,755.43
Change in Inventories of Finished Goods, Work-InProgress & Stock in Trade	457.08
Combined Material Cost Efficiency	2,212.51

Employee benefits expense: - Em ployee Benefit Expense during the stub period ended June 30, 2026 stood at Rs. 45.48 lakhs, comprising Salaries and Wages of Rs. 32.23 lakhs, directors remuneration of Rs. 5.46 lakhs, contribution to ESI & EPF of Rs. 0.64 lakhs and Staff Welfare Expenses of Rs. 7.15 lakhs.

Finance Cost: - Finance cost during the stub period ended June 30, 2026 stood at Rs. 97.93 lakhs, comprising interest on loan of Rs. 94.43 lakhs and loan processing & other charges of Rs. 3.49 lakhs.

Depreciation and Amortization Expenses: -Depreciation and Amortization expenses during the stub period ended June 30, 2026 stood at Rs. 116.87 lakhs, on account of depreciation of Plant & Machinery, Factory Shed, Electrical Equipment, Land & Building, Office Equipment, Furniture & Fixtures, Computer Systems and Motor Vehicles.

Other Expenses: -Other Expenses during the stub period ended June 30, 2026 stood at Rs. 108.18 lakhs, comprising Production Expenses, Administrative Expenses and Selling & Distribution Expenses. Production Expenses majorly consists of electricity charges of Rs. 32.20 lakhs, stores & consumables of Rs. 7.74 lakhs and carriage inward of Rs. 1.96 lakhs. Administrative Charges majorly consists of repairs and maintenance of Rs. 16.46 lakhs, professional fees of Rs. 13.53 lakhs, CSR expenses of Rs. 10.12 lakhs and rates & taxes of Rs. 3.82 lakhs. Selling & Distribution expenses majorly consists of delivery charges of Rs. 11.29 lakhs and admission & business promotion expenses of Rs. 1.90 lakhs.

Restated Profit before Exceptional Items, Extraordinary Item & Tax: - Restated Profit before Exceptional Items, Extraordinary Item and Tax was Rs. 468.19 lakhs during the stub period ended June 30, 2026.

Profit after Tax: - Our Company reported net profit after tax of Rs. 347.81 lakhs during the stub period ended June 30, 2026, representing a PAT margin of 11.48% on Revenue from Operations, as compared to a PAT margin of 9.52% in Fiscal 2026 indicating an improvement in profitability during the period. The higher PAT margin reflects improved conversion of revenue into net profit and indicates stronger profitability during the stub period.

During the stub period, the Companys Revenue from Operations amounted to Rs. 3,028.78 lakhs, generated from the sale of manufactured products. The Companys revenue profile reflects its presence in the lamination segment, which emerged as the principal contributor to manufacturing revenue. Lamination accounted for Rs. 2,217.71 lakhs, representing approximately 73.22% of the total revenue from manufacturing activities. Printed Plastic constituted the second-largest segment, contributing Rs. 560.50 lakhs or 18.51% of revenue.

The increased contribution of lamination to total revenue, from 59.22% in Fiscal 2026 to 73.22% during the stub period, highlights the segments growing significance in our Companys revenue profile. Similarly, printed plastic products contributed 18.51% of revenue during the stub period. The combined contribution of these two manufacturing segments indicates that our Companys revenue generation was predominantly driven by its principal manufacturing product categories. The combined contribution from sale of Laminates & Printed Plastics stood at 91.73% of total revenue from operations as compared to 90.94% in FY 2026, 55.06% in FY 2025 and 35.72% in FY 2024.

Accordingly, the PAT margin of 11.48% achieved during the stub period, compared with 9.52% in Fiscal 2026, is consistent with an improvement in our Companys profitability alongside a revenue profile dominated by manufacturing activities.

Overall, our Companys performance during the stub period reflects a favorable PAT margin and a revenue base primarily supported by lamination and printed plastic manufacturing activities.

Details of Financial Year 2025-26 compared to Financial Year 2024-25 (Based on Restated Financial Statements)

Total Income:

Total Income for the Financial Year 2025-26 stood at Rs. 11,531.47 lakhs whereas the same stood at Rs. 8,157.97 lakhs in Financial Year 2024-25, representing an increase of 41.35%. The total income includes revenue from operations of Rs. 11,513.91 lakhs (99.85% of total income) and other income of Rs. 17.56 lakhs (0.15% of total income) in FY 2025-26, compared to Rs. 8,102.12 lakhs (99.32%) and Rs. 55.84 lakhs (0.68%) respectively in FY 2024-25.

Revenue from Operations:

Revenue from Operations for Financial Year 2025-26 stood at Rs. 11,513.91 lakhs as against Rs. 8,102.12 lakhs in Financial Year 2024-25, representing an increase of 42.11%. This growth was driven by a sharp acceleration in manufacturing revenues (up 118.23% from Rs. 5,084.40 lakhs to Rs. 11,095.80 lakhs), even as our company deliberately wound down trading revenues by 86.14% (from Rs. 3,017.73 lakhs to Rs. 418.11 lakhs). The primary reasons for the increase in revenue are as follows:

1. Expansion of Customer Base: Our company added 76 new customers in FY 2025-26 (against 72 in FY 2024-25), generating incremental revenue of Rs. 2,889.77 lakhs from new customers. Revenue from existing customers grew from Rs. 6,477.39 lakhs to Rs. 8,624.14 lakhs, reflecting improved penetration and higher order volumes from established relationships. Total customer count stood at 232 (actual active base) in FY 2025-26.

2. New Product Revenues: Our company scaled up revenues from new product categories introduced in recent years. Poly Laminates revenues grew by 383.39% from Rs. 62.99 lakhs to Rs. 304.50 lakhs. Aluminium Foil Laminates contributed Rs. 37.94 lakhs in FY 2025-26 as against Rs. 44.31 lakhs in FY 202425. Printed Plastic packaging (milk, dahi, lassi pouches) contributed Rs. 208.46 lakhs. Cumulatively, these new product categories contributed Rs. 550.90 lakhs in FY 2025-26.

3. Strategic Wind-down of Trading and Shift to Manufacturing: Our company deliberately phased out its lower-margin trading business from Rs. 3,017.73 lakhs in FY 2024-25 to Rs. 418.11 lakhs in FY 202526. While this reduced overall revenue by Rs. 2,599.62 lakhs in absolute terms, the concurrent 118.23% growth in higher-margin manufacturing revenues more than compensated, resulting in a net revenue growth of 42.11% and a substantial expansion in profitability.

4. Strong Q4 Performance: Our companys revenues are skewed towards the second half of the year, with Q4 (January to March) contributing approximately 47.60% of annual revenues in FY 2025-26, reflecting the cyclical procurement patterns of institutional packaging buyers. In the Q4 of FY2026 we achieved a jump of 44.17% over Q4 of FY2025 from Rs. 3,801.37 lakhs in Q4, FY2025 to Rs. 5,480.45 lakhs in Q4, FY2026.

Revenue Bifurcation- Quarterly (Amount in Rs. Lakhs except %)
Particulars	Fiscal 2026	% of Revenue	Fiscal 2025	% of Revenue	Fiscal 2024	% of Revenue
Quarter 1	1,462.76	12.70	2,075.55	25.62	457.03	9.23
Quarter 2	2,544.40	22.10	1,188.67	14.67	1,953.13	39.43
Quarter 3	2,026.30	17.60	1,036.52	12.79	870.48	17.57
Quarter 4	5,480.45	47.60	3,801.37	46.92	1,672.82	33.77
TOTAL	11,513.91	100.00	8,102.11	100.00	4,953.46	100.00

Other Income:

Other Income for FY 2025-26 was Rs. 17.56 lakhs as against Rs. 55.84 lakhs in FY 2024-25, a decrease of Rs. 38.28 lakhs or 68.56%. The higher other income in FY 2024-25 was entirely on account of nonrecurring items comprising consultancy fees of Rs. 28.39 lakhs and liability written off of Rs. 18.00 lakhs, neither of which recurred in FY 2025-26. In FY 2025-26, other income comprised of Rs. 7.97 lakhs as

interest received, of Rs. 3.62 lakhs as discount received, of Rs. 3.60 lakhs as rent received, of Rs. 0.84 lakhs as profit on sale of fixed assets, and Rs. 1.53 lakhs as delivery charges.

Total Expenses:

Total Expenses for Financial Year 2025-26 stood at Rs. 10,058.90 lakhs as compared to Rs. 7,496.59 lakhs in Financial Year 2024-25, representing an increase of Rs. 2,562.31 lakhs or 34.18%. It is analyzed that total expenses in proportion to total income constitute 87.23% in Financial Year 2025-26 as compared to 91.89% in Financial Year 2024-25, reflecting a meaningful improvement in cost efficiency and operating leverage as our company scales its manufacturing business.

Cost of Materials Consumed:

Cost of Materials Consumed for Financial Year 2025-26 stood at Rs. 8,969.80 lakhs as compared to Rs. 4,671.48 lakhs in Financial Year 2024-25, representing an increase of 92.01%. The increase reflects the significant expansion in manufacturing volumes to meet the increased demand.

Particulars	FY2026	FY2025	FY2024
Revenue from Manufacturing activity ( Rs. in Lakhs)	11,095.80	5,084.40	2,173.80
Cost of material consumed ( Rs. in Lakhs)	8,969.80	4,671.48	1,899.59
% to Revenue from Manufacturing activity	80.84%	91.88%	87.39%

Purchase of Stock-in-Trade:

Purchase of Stock-in-Trade for Financial Year 2025-26 stood at Rs. 417.59 lakhs as compared to Rs. 3,004.80 lakhs in Financial Year 2024-25, a decline of Rs. 2,587.21 lakhs or 86.10%. This sharp reduction is consistent with our companys strategic decision to phase out the trading business entirely in FY 202526 and focus management bandwidth and working capital resources on the higher-margin manufacturing operations. In proportion to total income, trading purchases declined from 36.84% in FY 2024-25 to 3.62% in FY 2025-26.

Changes in Inventories of Finished Goods, WIP and Stock-in-Trade:

Changes in Inventory of Finished Goods, WIP, and Stock-in-Trade for Financial Year 2025-26 reflects an increase in closing stock by Rs. 484.03 lakhs as against an increase in closing stock of Rs. 832.65 lakhs in Financial Year 2024-25. In proportion to total income, it represents (4.20%) in FY 2025-26 and (10.21%) in FY 2024-25. The lower inventory build-up compared to FY 2024-25 reflects the operational steadying of the manufacturing line; our company had built significant WIP in FY 2024-25 in anticipation of the new line, whereas FY 2025-26 reflects a more normalized production-sales cycle.

Employee Benefits Expense:

Employee Benefit Expense for Financial Year 2025-26 stood at Rs. 223.57 lakhs as compared to Rs. 162.02 lakhs in FY 2024-25, an increase of 37.99%. This increase is primarily attributable to the increase in total operational workforce (inclusive of contractual personnel but excluding Key Managerial Personnel) from 60 to 70 employees and the corresponding increase in salaries and wages from Rs. 135.02 lakhs to Rs. 190.48 lakhs. In proportion to total income, employee benefit expenses declined from 1.99% in FY 2024-25 to 1.94% in FY 2025-26, demonstrating our companys ability to manage workforce costs efficiently even as operations expanded.

Finance Cost:

Finance Cost for Financial Year 2025-26 stood at Rs. 220.48 lakhs, representing an increase of 84.34% from Rs. 119.61 lakhs in FY 2024-25. The increase in finance costs is attributable to the significant rise in total borrowings from Rs. 1,331.85 lakhs to Rs. 4,681.54 lakhs, primarily to fund capital expenditure of Rs. 2,227.02 lakhs on the new converting line and the enhanced working capital requirements

commensurate with the growth in manufacturing volumes. Interest on bank term loans increased from R76.04 lakhs to R139.07 lakhs, interest on NBFC loans from R27.62 lakhs to R51.19 lakhs, and loan processing charges from R15.95 lakhs to R30.22 lakhs. In proportion to total income, finance costs increased from 1.47% to 1.91%, remaining manageable given the scale of investment undertaken.

Depreciation and Amortization Expenses:

Depreciation and Amortization Expenses for Financial Year 2025-26 stood at R254.85 lakhs as compared to R65.04 lakhs in FY 2024-25, representing an increase of291.82%. This substantial increase is entirely on account of the capital expenditure of R2,227.02 lakhs incurred on the new flexible packaging converting line and allied plant and machinery, resulting in the gross block rising from R580.56 lakhs to R3,239.26 lakhs. Depreciation in proportion to total income increased from 0.80% in FY 2024-25 to 2.21% in FY 2025-26. It should be noted that depreciation is a non-cash charge; our companys cash profit (PAT + Depreciation) was R1,351.47 lakhs in FY 2025-26 as against R521.10 lakhs in FY 2024-25, a growth of 159.35%.

Other Expenses:

Other Expenses for FY 2025-26 stood at R456.63 lakhs as against R306.29 lakhs in FY 2024-25, an increase of R150.34 lakhs or 49.09%. In proportion to total income, other expenses increased marginally from 3.75% to 3.96%. Key movements were:

(Amount Rs. in Lakhs)

Particulars	FY 202526	FY 202425	Change	Reason
Electricity Expenses	182.91	146.33	36.58	Higher power consumption on account of increased manufacturing throughput.
Professional & Legal Charges	38.12	12.91	25.21	Primarily on account of IPO-related legal, advisory, and filing expenses; largely nonrecurring.
Repairs & Maintenance	32.79	24.34	8.45	Maintenance of expanded manufacturing infrastructure.
Delivery Charges	61.48	48.50	12.98	Commensurate with higher sales volumes and increased dispatch activity.
Subscription & Donations	16.12	0.51	15.61	Institutional subscriptions and donations related contributions.
Rates & Taxes	20.79	10.62	10.17	General increase in line with higher business activity and regulatory compliance.
Discount Allowed	25.84	1.58	24.26	Higher trade discounts extended to incentivize bulk purchases from manufacturing customers.
Total Other Expenses	456.63	306.29	150.34

Restated Profit before Exceptional Items, Extraordinary Item and Tax:

Restated Profit before Exceptional Items, Extraordinary Item and Tax was R 1,472.57 lakhs in FY 202526 as compared to R661.38 lakhs in FY 2024-25. In proportion to total income, this profit represents 12.77% in FY 2025-26 compared to 8.11% in FY 2024-25.

Profit After Tax:

Our Company reported PAT of R1,096.62 lakhs in FY 2025-26, marking an increase of 140.45% compared to R456.06 lakhs in FY 2024-25. The PAT margin improved from 5.63% in FY 2024-25 to 9.52% in FY 2025-26.

The total expenses to total income ratio improved from 91.89% in FY 2024-25 to 87.19% in FY 202526, underscoring better cost management and the significant operating leverage unlocked by the manufacturing scale-up. Primary reasons for the increase in PAT margin are as below:

1. Change in sales mix: The total revenue from operations of our Company comprises revenue from manufacturing activity and revenue from trading activity. The proportion of each has undergone a material and deliberate transformation over the three financial years, as set out below:

Revenue from	FY2026	FY2025
Manufacturing Activity (Amount Rs. in lakhs)	11,095.80	5,084.40
Trading Activity (Amount Rs. in lakhs)	418.11	3,017.73
% of manufacturing activity to total revenue from operations	96.37%	62.75%
% of trading activity to total revenue from operations	3.63%	37.25%
Total Revenue from operations (Amount Rs. in lakhs)	11,513.91	8,102.12

Pursuant to a deliberate strategic decision, our company progressively redirected its operational focus and capital allocation towards manufacturing, which delivers significantly superior margins by capturing value addition. In FY 2025-26, manufacturing revenues grew by 118.23% to Rs. 11,095.80 lakhs from Rs. 5,084.40 lakhs in FY2025, constituting 96.37% of total operating revenues. Trading revenues contracted sharply to Rs. 418.11 lakhs or 3.63% of total revenues.

The impact of this shift on our companys overall profitability has been material and quantifiable. Since trading activity operates at a margin of less than 1%, while manufacturing activity operates at an EBITDA margin substantially in excess of that which has been the single most important driver of margin expansion over the period. The blended EBITDA margin of our company improved from 10.25% in FY 2024-25 and further to 16.66% in FY 2025-26, directly tracking the progressive reduction in the share of low-margin trading revenues and the corresponding increase in the share of manufacturing revenues. On an implied basis, the manufacturing segments EBITDA margin stood at approximately 17.56% in FY 2025-26, against a lower than 1% margin on the trading segment. The gross profit margin at our company level has consequently improved from 15.53% in FY 2024-25 and 22.67% in FY 2025-26, reflecting the cumulative effect of this sales mix transformation.

This structural shift in revenue composition is the fundamental basis for the substantial improvement in PAT margins from 5.63% in FY 2024-25 to 9.52% in FY 2025-26.

2. Substantial Growth in Manufacturing Revenue with Superior Margins: Manufacturing revenues grew by 118.23% from Rs. 5,084.40 lakhs to Rs. 11,095.80 lakhs. Manufacturing operations generate significantly superior margins compared to the erstwhile trading business. The shift in revenue mix from 62.75% manufacturing in FY 2024-25 to 96.37% in FY 2025-26 fundamentally transformed the margin profile of our company.

3. Combined Material Cost Efficiency: The combined material cost ratio (Cost of Materials Consumed plus Purchase of Stock-in-Trade as a percentage of revenue from operations) improved from 94.74% in FY 2024-25 to 81.53% in FY 2025-26, an improvement of approximately 1,321 basis points. In a manufacturing setup, value addition is retained in-house, delivering superior gross margins as compared to the thin-margin trading model.

4. Significant Operating Leverage: Total expenses grew by 34.12% while revenue grew by 42.11%, resulting in significant operating leverage. Key fixed and semi-fixed costs (employee benefits, other expenses) grew at a much slower pace than revenue, driving margin expansion. Employee benefit

expenses grew by 37.99% against revenue growth of 42.11%, and other expenses grew by 49.09% against revenue growth of 42.11% (the latter partly due to one-time IPO-related expenses).

5. EBITDA Margin Expansion: EBITDA expanded by 131.02% from Rs. 830.09 lakhs to Rs. 1,917.68 lakhs. EBITDA margin expanded from 10.25% to 16.66% of Revenue from Operations, a remarkable improvement of 641 basis points in a single year. This is the primary driver of PAT growth.

6. Moderated by Higher Depreciation (Non-Cash): The PAT growth of 140.45%, while impressive, was moderated by a 291.82% increase in depreciation ( Rs. 254.85 lakhs vs Rs. 65.04 lakhs). However, since depreciation is entirely a non-cash charge, our companys cash profit grew by 159.35% from Rs. 521.10 lakhs to Rs. 1,351.47 lakhs, reflecting the true underlying cash generation capacity of the expanded business.

Details of Financial Year 2024-25 compared to Financial Year 2023-24 (Based on Restated Financial Statements)

Total Income:

Total Income for the Financial Year 2024-25 stood at Rs. 8,157.97 lakhs whereas the same stood at Rs. 4,972.92 lakhs in Financial Year 2023-24, representing an increase of 64.05%. The total income includes revenue from operations of Rs. 8,102.12 lakhs representing 99.32% of total income and other income of Rs. 55.84 lakhs representing 0.68% of total income in FY 2024-25, compared to Rs. 4,953.46 lakhs representing 99.61% of total income and Rs. 19.46 lakhs representing 0.39% of total income respectively in FY 2023-24.

Revenue from Operations:

Revenue from Operations for Financial Year 2024-25 stood at Rs. 8,102.12 lakhs as against Rs. 4,953.46 lakhs in Financial Year 2023-24, representing an increase of 63.56%. This growth was primarily driven by a 133.89% increase in manufacturing revenues from Rs. 2,173.80 lakhs to Rs. 5,084.40 lakhs. The primary reasons for the increase in revenue are as follows:

1. Significant Acceleration in Manufacturing Revenues: Manufacturing revenues grew by 133.89%, from Rs. 2,173.80 lakhs in FY 2023-24 to Rs. 5,084.40 lakhs in FY 2024-25. Capital expenditure of Rs. 162.92 lakhs invested in FY 2023-24 towards the end of the year, the effective utilization of which impacted in FY2024-25, contributed to enhanced manufacturing capacity. These additions commenced contributing meaningfully to output in FY 2024-25, driving the acceleration in manufacturing revenues.

2. Customer Base Expansion: Our company added 72 new customers in FY 2024-25, generating revenue of Rs. 1,624.73 lakhs from new customers. Revenue from existing customers grew from Rs. 3,951.53 lakhs to Rs. 6,477.39 lakhs, reflecting both price and volume growth. Total customer count grew from 219 to 229 (actual active base) during the year.

3. Introduction of New Product Categories: FY 2024-25 saw the introduction of Aluminium Foil Laminates generating Rs. 44.31 lakhs in its first year. Poly Laminates revenues grew from Rs. 45.81 lakhs to Rs. 62.99 lakhs. Printed Plastic packaging revenues grew sharply from Rs. 54.36 lakhs to Rs. 256.36 lakhs, reflecting growing market acceptance of our Companys manufacturing capabilities.

Other Income:

Other Income for FY 2024-25 was Rs. 55.84 lakhs as against Rs. 19.46 lakhs in FY 2023-24, an increase of Rs. 36.38 lakhs or 186.95%. The increase was primarily attributable to non-recurring items, namely consultancy fees of Rs. 28.39 lakhs received for providing technical advisory services on flexible packaging plant installation, and liability written off of Rs. 18.00 lakhs. These items are non-recurring and have not been repeated in FY 2025-26.

Total Expenses:

Total Expenses for Financial Year 2024-25 stood at Rs. 7,496.59 lakhs as compared to Rs. 4,886.83 lakhs in Financial Year 2023-24, representing an increase of Rs. 2,609.76 lakhs or 53.41%. In proportion to total income, total expenses declined from 98.27% in FY 2023-24 to 91.89% in FY 2024-25, indicating a meaningful improvement in the cost-income ratio.

Cost of Materials Consumed:

Cost of Materials Consumed for Financial Year 2024-25 stood at Rs. 4,671.48 lakhs as compared to Rs. 1,899.59 lakhs in Financial Year 2023-24, an increase of 145.92%. This reflects the accelerated growth in manufacturing volumes. Our companys raw material requirements scaled up significantly as manufacturing revenues more than doubled. In proportion to total income, RM consumed increased from 38.20% to 57.26%, which reflects the higher share of manufacturing in the revenue mix. When combined with changes in inventory, the effective raw material consumption as a percentage of manufacturing revenues decreased from 81.04% in FY2024 to 75.50% in FY2025 as the revenue and production grew our company placed bulk orders and started buying raw material directly from importers.

Combined cost of material consumed with change in inventory:

Particulars	FY2025	FY2024
A.) Revenue from Manufacturing Activity (Amount Rs. in lakhs)	5,084.40	2,173.80
B.) Cost of Materials consumed (Amount Rs. in lakhs)	4,671.48	1,899.59
C.) Change in Inventories of Finished Goods, Work-In-Progress & Stock in Trade (Amount Rs. in lakhs)	(832.65)	(137.98)
D.) Combined B+C (Amount Rs. in lakhs)	3,838.82	1,761.61
E.) % of D to A	75.50%	81.04%

Table representing revenue mix

Revenue from	FY2025	FY2024
Manufacturing Activity (Amount Rs. in lakhs)	5,084.40	2,173.80
Trading Activity (Amount Rs. in lakhs)	3,017.73	2,779.67
% of manufacturing activity to total revenue from operations	62.75%	43.88%
% of trading activity to total revenue from operations	37.25%	56.12%
Total Revenue from operations (Amount Rs. in lakhs)	8,102.12	4,953.46

Changes in Inventories of Finished Goods, WIP and Stock-in-Trade:

Changes in Inventory of Finished Goods and WIP for Financial Year 2024-25 reflects an increase in closing stock by Rs. 832.65 lakhs as against Rs. 137.98 lakhs in Financial Year 2023-24. This significant increase in inventory primarily comprises work-in-progress aggregating to Rs. 683.04 lakhs and finished goods amounting to Rs. 603.52 lakhs. The increase was attributable to the shorter order-to-dispatch cycle inherent in the business operations and the anticipated growth in production and sales volumes during Fiscal 2025-26, in line with the upward trend in revenue and production levels. Additionally, the introduction of new products and growing experience with the new customer contributed to

accumulation ofWIP and finished goods inventory. In proportion to total income, it represents (10.21%) in FY 2024-25 compared to (2.77%) in FY 2023-24.

Employee Benefits Expense:

Employee Benefit Expense for Financial Year 2024-25 stood at Rs. 162.02 lakhs as compared to Rs. 99.31 lakhs in FY 2023-24, an increase of 63.14%. This increase is attributable to the ramp-up in total operational workforce (inclusive of contractual personnel but excluding Key Managerial Personnel) from 46 to 60 employees and the increase in salaries and wages from Rs. 77.31 lakhs to Rs. 135.02 lakhs. In proportion to total income, employee benefit expenses remained stable at 1.99% in FY 2024-25 compared to 2.00% in FY 2023-24.

Finance Cost:

Finance Cost for FY 2024-25 stood at Rs. 119.61 lakhs representing an increase of 195.71% from Rs. 40.45 lakhs in FY 2023-24. The significant increase reflects the enhancement of working capital borrowing limits from AU Small Finance Bank and HDFC Bank to support the rapidly expanding operations. Total borrowings increased from Rs. 635.24 lakhs to Rs. 1,331.85 lakhs during the year. In proportion to total income, finance costs increased from 0.81% to 1.47%.

Depreciation and Amortization Expenses:

Depreciation and Amortization Expenses for FY 2024-25 stood at Rs. 65.04 lakhs as against Rs. 27.28 lakhs in FY 2023-24, an increase of 138.42%. This was on account of additions to property, plant and equipment of Rs. 208.07 lakhs during FY 2024-25. In proportion to total income, depreciation increased from 0.55% to 0.80%.

Other Expenses:

Other Expenses for FY 2024-25 stood at Rs. 306.29 lakhs as against Rs. 182.98 lakhs in FY 2023-24, an increase of Rs. 123.31 lakhs or 67.39%. Key increases included electricity expenses of Rs. 146.33 lakhs vs Rs. 90.44 lakhs, reflecting higher manufacturing activity, delivery charges Rs. 48.50 lakhs vs Rs. 33.53 lakhs, professional charges of Rs. 12.91 lakhs vs Rs. 0.70 lakhs, and repairs and maintenance Rs. 24.34 lakhs vs Rs. 18.47 lakhs. In proportion to total income, other expenses increased marginally from 3.68% to 3.75%.

Restated Profit before Exceptional Items, Extraordinary Item and Tax:

Restated Profit before Exceptional Items, Extraordinary Item and Tax was Rs. 661.38 lakhs in FY 202425 as compared to Rs. 86.09 lakhs in FY 2023-24, an increase of Rs. 575.29 lakhs or 668.26%. In proportion to total income, this profit represents 8.11% in FY 2024-25 compared to 1.73% in FY 2023-24.

Profit After Tax:

Our Company reported PAT of Rs. 456.06 lakhs in FY 2024-25 as against Rs. 63.59 lakhs in FY 2023-24, an increase of 617.19%. The PAT margin improved from 1.28% to 5.63% of Revenue from Operations. Primary reasons for the increase in PAT margin are as below:

1. Transformational Uplift in Revenue Scale: Total income grew by 64.05%, with manufacturing revenues growing at 133.89%. This revenue growth, combined with the relatively fixed nature of a portion of our companys cost structure, generated significant operating leverage, driving PAT growth far in excess of revenue growth.

2. EBITDA Margin Expansion: EBITDA grew from Rs. 148.04 lakhs in FY 2023-24 to Rs. 830.08 lakhs in FY 2024-25, an increase of 460.71%. EBITDA margin expanded from 2.99% to 10.25% of Revenue from Operations, an improvement of 726 basis points in a single year, demonstrating the transformative impact of the manufacturing scale-up.

3. Reduction in Total Expenses as a Proportion of Income: Total expenses as a percentage of total income declined from 98.27% in FY 2023-24 to 91.89% in FY 2024-25. Our company managed its production costs, administrative overheads, and employee costs efficiently, even as it scaled up production volumes significantly.

4. Non-Recurring Other Income: Other income in FY 2024-25 included non-recurring items: consultancy fees of Rs. 28.39 lakhs and liability written off of H8.00 lakhs. While these were one-time in nature, they contributed approximately Rs. 46.39 lakhs to pre-tax profit, of which approximately Rs. 34.29 lakhs flowed to PAT (after tax), representing approximately 7.52% of PAT for FY 2024-25.

5. Base Effect: FY 2023-24 profitability was constrained by the early-stage nature of manufacturing operations and a predominantly trading-oriented revenue mix with thin margins. The normalization of manufacturing operations and the full benefit of prior capital expenditure were realized in FY 2024-25, contributing materially to the exceptional PAT growth rate.

Taken together all the factors above PAT margin to revenue from operations grew from 1.28% in FY2024 to 5.63% in FY2025.

LIQUIDITY AND CAPITAL RESOURCES:

We have been able to finance our capital requirements and the expansion of our business and operations through a combination of funds generated from our operations, equity infusions from shareholders and debt financing, and we expect to continue to do so. Our primary capital requirements are for working capital, capital expenditure, and general corporate purposes.

We believe that after taking into account the expected cash to be generated from our business and operations, the Net Proceeds from the Fresh Issue, and the proceeds from our existing bank loans, we will have sufficient capital to meet our anticipated requirements for our working capital, Capital Expenditure, and General Corporate Purposes for the 12 months following the date of this Red Herring Prospectus. For the Stub Period ended June 30, 2026 and for the Financial Years ended on March 31, 2026, March 31, 2025, and March 31, 2024, we had cash and cash equivalents (comprising cash on hand and balances with banks) of Rs. 43.99 lakhs, Rs. 755.32 lakhs, Rs. 50.13 lakhs, and H2.83 lakhs respectively as per our Restated Financial Statements.

CASH FLOW:

The table below summarizes our cash flows from our Restated Financial Information for the stub period ended June 30, 2026 and financial years ended on March 31, 2026, March 31, 2025, and March 31, 2024.

				Rs. in Lakhs
Particulars	June, 2026	FY 202526	FY 202425	FY 202324
Net Cash Flows from / (Used in) Operating Activities (A)	20.90	(1,146.38)	126.29	(345.55)
Net Cash Flows from / (Used in) Investing Activities (B)	(433.90)	(2,864.64)	(665.98)	(251.58)
Net Cash Flows from / (Used in) Financing Activities (C)	(298.33)	4,716.21	577.00	584.96
Net Increase / (Decrease) in Cash and Cash Equivalents (A+B+C)	(711.33)	705.19	37.30	(12.17)
Cash and Cash Equivalents at the Beginning of the Year	755.32	50.13	12.83	25.00
Cash and Cash Equivalents at the End of the Year	43.99	755.32	50.13	12.83

FINANCIAL MARKET RISKS

We are exposed to financial market risks from changes in borrowing costs, interest rates and inflation. INTEREST RATE RISK

We are currently exposed interest to rate risks to the extent of outstanding loans. However, any rise in future borrowings may increase the risk.

EFFECT OF INFLATION

We are affected by inflation as it has an impact on the material cost, operating cost, staff costs etc. In line with changing inflation rates, we rework our margins so as to absorb the inflationary impact.

OTHER MATTERS INFORMATION REQUIRED AS PER ITEM 11 (ID (C) (IV) OF PART A OF SCHEDULE VI TO THE SEBI (ICDR) REGULATIONS. 2018:

1. Unusual or infrequent events or transactions

Except as described in this Red Herring Prospectus, there have been no other events or transactions to the best of our knowledge which may be described as "unusual" or "infrequent".

2. Significant economic changes that materially affected or are likely to affect income from continuing operations.

Our business has been subject, and we expect it to continue to be subject to significant economic changes arising from the trends identified above in Factors Affecting our Results of Operations and the uncertainties described in the section entitled "Risk Factors" beginning on page no 30 of the Red Herring Prospectus. To our knowledge, except as we have described in the Red Herring Prospectus, there are no known factors which we expect to bring about significant economic changes.

3. Known trends or uncertainties that have had or are expected to have a material adverse impact on sales. revenue or income from continuing operations.

Apart from the risks as disclosed under Section titled "Risk Factors" beginning on page no. 30 in this Red Herring Prospectus, in our opinion there are no other known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations.

4. Future changes in relationship between costs and revenues. in case of events such as future increase in labour or material costs or prices that will cause a material change are known.

Our Companys future costs and revenues will be determined by demand/supply situation, government policies and other economic factor.

5. Extent to which material increases in net sales or revenue are due to increased sales volume. introduction of new products or increased sales prices.

Increases in revenues are by and largely linked to increases in volume of business and also dependent on the price realization on our products/services.

6. Total turnover of each major industry segment in which the issuer company operated.

Our Company operates in the flexible packaging industry. Relevant industry data, as available, has been included in the chapter titled "Industry Overview" beginning on page 170 of this Red Herring Prospectus.

7. Status of any publicly announced new products or business segment.

Vedant Poly Fabs Limited (registered under MSME) specializing in manufacturing of flexible packaging materials. Our Company has not announced any new product and segment / scheme, other than disclosed in chapter title "Our Business" beginning on Page 192 in this Red Herring Prospectus.

8. The extent to which business is seasonal.

Our business does not depend to a certain extent on the seasonal, environmental and climate changes. Hence, our business is not seasonal in nature.

9. Competitive conditions:

Our company is engaged in the manufacturing of flexible packaging materials and operate as a business- to-business (B2B) supplier to customers across India.

The income is dependent on a single supplier or customer or a few suppliers or customers. Further, a single or few supplier/ suppliers or customer/customers contributes to a significant portion of the business. Contribution of suppliers and customers, as a percentage of total purchase and revenue, respectively, for the periods indicated below:

The list containing of top 5 and top 10 suppliers are as follows:

(Amount Rs. in Lakhs)

Particulars	For stub period ended June 2026		For Financial Year ended March 31, 2026		For Financial Year ended March 31, 2025		For Financial Year ended March 31, 2024
	Amount	% of Purchases	Amount	% of Purchases	Amount	% of Purchases	Amount	% of Purchases
Top 5	1,465.86	82.51	7,541.79	77.02	3,811.30	49.07	1,265.14	26.46
Top 10	1,663.56	93.64	8,408.99	85.88	4,178.93	53.80	1,370.49	28.66

The list containing of top 5 and top 10 customers are as follows:

(Amount Rs. in Lakhs)

Particulars	For stub period ended June 2026		For Financial Year ended March 31, 2026		For Financial Year ended March 31, 2025		For Financial Year ended March 31, 2024
	Amount	% of Sales	Amount	% of Sales	Amount	% of Sales	Amount	% of Sales
Top 5	2,183.88	72.10	6,928.83	60.18	1,925.73	23.77	442.93	8.94
Top 10	2,402.58	79.33	8,018.64	69.64	2,442.78	30.15	668.33	13.49