Vigor Plast India Ltd Management Discussions

The following discussion outlines the operational and financial performance of the Company, as well as its business outlook for the financial year 2025-26. This analysis is based on the prevailing business environment and current Government policies. It should be noted that future economic developments and other external factors may lead to variations in this analysis.

The Managements perspective on the Companys performance and future outlook is presented below:

ECONOMIC OVERVIEW

Global Economy and Indian Economy Outlook Global Economy

The global economy remained resilient during FY 2025-26 despite continuing geopolitical tensions, trade- related uncertainties, changing financial conditions and uneven economic recovery across major economies. Technology-related investment, policy support and adaptability of businesses provided support to global economic activity, although the operating environment remained uncertain.

During FY 2025-26, geopolitical developments and disruptions in global trade and commodity markets continued to influence economic activity, inflation and financial conditions. The global economic outlook remains subject to risks arising from geopolitical conflicts, trade restrictions, supply-chain disruptions, commodity price volatility and financial market uncertainties.

According to the International Monetary Fund ("IMF"), global growth is projected to moderate to 3.0% in 2026 and recover to 3.4% in 2027. The outlook remains subject to considerable uncertainty, particularly from geopolitical developments, commodity prices, trade tensions and the evolution of global financial conditions.

The global economic environment continues to present both opportunities and challenges for emerging markets. Diversification of global supply chains, increasing investment in manufacturing and infrastructure and the continuing evolution of international trade may create opportunities for emerging economies. At the same time, fluctuations in commodity prices, changes in global trade policies and slower growth in major economies may affect business activity and investment decisions.

Indian Economy Outlook

The Indian economy continued to demonstrate resilience during FY 2025-26, supported by domestic consumption, investment activity, infrastructure development and improving macroeconomic fundamentals. Domestic demand remained an important driver of economic activity, while continued public capital expenditure supported infrastructure and construction-related activity.

As per the Economic Survey 2025-26, Indias real GDP is estimated to have grown by 7.4% during FY 2025-26. The services sector remained an important contributor to economic growth, while manufacturing and construction activity also recorded healthy growth. Manufacturing expanded by 8.4% during the first half of FY 2025-26, while construction activity grew by 7.4% during the same period, supported by public capital expenditure and ongoing infrastructure projects.

Domestic consumption continued to provide a strong foundation for economic activity. Private Final Consumption Expenditure was estimated to account for approximately 61.5% of GDP, reflecting the importance of domestic demand in supporting economic growth.

Inflationary pressures also moderated during the year. The Economic Survey 2025-26 noted a broad-based easing in domestic inflation, supported particularly by moderation in food prices and favourable supply-side conditions.

The outlook for the Indian economy remains positive, supported by domestic consumption, infrastructure investment, manufacturing activity, urbanisation and structural economic reforms. Continued investment in housing, water supply, sanitation, irrigation, transportation and other infrastructure is expected to provide a supportive environment for industries linked to construction, agriculture and infrastructure.

For Vigor Plast India Limited, the overall economic environment remains relevant given the Companys presence across residential, commercial, agricultural and industrial applications. The Companys portfolio of PVC, uPVC, cPVC and SWR pipes and fittings is linked to several sectors that benefit from infrastructure development, housing activity, agricultural and irrigation requirements, water management and construction activity.

The continuing focus on infrastructure development, housing, water supply, sanitation and agricultural productivity is expected to support the long-term demand for piping solutions. At the same time, fluctuations in the prices of polymer-based raw materials, energy and transportation costs, interest rates and broader economic conditions remain key factors that may influence the Companys operating performance.

Overall, the resilience of domestic demand and the Governments continued focus on infrastructure and economic development provide a supportive backdrop for the Companys business. The Company remains focused on strengthening its manufacturing capabilities, distribution network, product portfolio and operational efficiencies to participate in the opportunities arising from Indias long-term growth prospects.

Source: Economic Survey 2025-26, Government o f India: International Monetary Fund, World Economic Outlook 2026.

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Indian plastics industry is an important segment of the countrys manufacturing sector and comprises a wide range of products, including pipes, fittings, packaging products, films, sheets, raw materials and other plastic products. The industry has a significant presence of small and medium enterprises and caters to diverse end-use sectors.

Within the plastics industry, the plastic piping segment serves a wide range of applications, including plumbing, irrigation, water distribution, drainage and Soil, Waste and Rainwater ("SWR") management. PVC, uPVC and cPVC pipes and fittings are increasingly used across residential, commercial, agricultural and industrial applications. Your Company manufactures and supplies PVC, uPVC and cPVC pipes, fittings and related products for plumbing, irrigation and SWR applications and caters to both rural and urban markets.

Key Industry Developments

The Indian piping industry continued to benefit from the development of residential and commercial infrastructure, agricultural and irrigation activities, water management requirements and increasing urbanisation. Growing awareness regarding product quality, durability, standardisation and reliable water - management solutions is also supporting demand for organised and branded piping products.

The industry remains competitive, with organised manufacturers, regional players and unorganised manufacturers operating across various product categories and geographies. Competition is influenced by product quality, pricing, product range, brand recognition, distribution reach, product availability and customer service.

The industry also remains sensitive to fluctuations in the prices of key raw materials, particularly PVC and other polymer-based inputs. Changes in construction activity, agricultural demand, infrastructure spending and general economic conditions may also influence the demand for piping products.

Government Initiatives

Government initiatives relating to water supply, sanitation, irrigation, housing and infrastructure development continue to provide a supportive environment for the piping industry.

The Jal Jeevan Mission ("DM") focuses on providing safe and adequate drinking water through household tap connections in rural India, along with measures relating to water-source sustainability, water conservation, rainwater harvesting and greywater management. During FY 2025-26, the Government approved Jal Jeevan Mission 2.0, extending the Mission up to December 2028 with an enhanced total outlay of Rs.8.69 lakh crore, including Central assistance of Rs.3.59 lakh crore, with greater emphasis on sustainable and reliable rural piped drinking water services.

The Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) continues to support expansion of irrigation coverage and improvement in water-use efficiency, thereby contributing to the development of agricultural irrigation infrastructure.

These Government programmes relating to housing, urban infrastructure, sanitation, water conservation, irrigation and agricultural development are expected to support demand for pipes and fittings over the medium to long term.

Outlook for the Industry

The medium- to long-term outlook for the Indian plastic piping industry remains positive, supported by infrastructure development, urbanisation, housing activity, agricultural and irrigation requirements and increasing emphasis on efficient water management.

Continued investment in water supply, sanitation, irrigation and infrastructure is expected to create opportunities for manufacturers of piping and fittings. Increasing demand for durable, standardised and efficient piping solutions across residential, commercial, agricultural and industrial applications is also expected to support the industrys growth.

However, competitive intensity and volatility in raw material prices are expected to remain key factors influencing the industry. Manufacturers with diversified product portfolios, efficient manufacturing operations, established distribution networks and effective cost management are expected to be better positioned to participate in the industrys growth.

For Your Company, its presence across PVC, uPVC, cPVC and SWR pipes and fittings, catering to residential, commercial, agricultural and industrial applications, provides a diversified platform to participate in the opportunities arising from the continued development of the Indian piping market.

OUR BUSINESS

Your Company, Vigor Plast India Limited, is engaged in the manufacturing and supply of PVC, uPVC and cPVC pipes, fittings and related products catering to plumbing, irrigation and Soil, Waste and Rainwater ("SWR") applications. Your Companys products are used across residential, commercial, agricultural and industrial sectors.

Your Company was incorporated in 2014 as Vigor Plast India Private Limited and initially commenced operations as a trader of PVC pipes and fittings. In 2020, Your Company commenced its manufacturing operations. Subsequently, the Company expanded its product portfolio, distribution network and market presence. In November 2024, the Company was converted into a public limited company and its name was changed to Vigor Plast India Limited.

Product Portfolio

Your Companys product portfolio comprises a range of pipes, fittings and ancillary products, including:

• cPVC Pipes and Fittings

• uPVC Pipes and Fittings

• PVC Agriculture Pipes and Fittings

• SWR Ring Fit Pipes and Fittings

• SWR Self Fit Pipes and Fittings

• P.T.M.T. products and other ancillary products

The Companys portfolio includes products across different sizes and specifications to cater to diverse application requirements.

Your Companys cPVC products are primarily used for hot and cold-water plumbing applications, while uPVC products are used mainly for cold-water plumbing and related applications. Agriculture PVC products cater to irrigation and agricultural water-distribution requirements, while SWR products are used for soil, waste and rainwater discharge systems.

Manufacturing Infrastructure

Your Companys manufacturing facility is located at Dared, Gujarat, which also serves as its registered office. The facility is equipped with automated manufacturing equipment and an in-house laboratory for conducting quality checks throughout the manufacturing process. The manufacturing and quality-control processes are supported by skilled personnel across production, quality control, operations and related functions.

Your Company continues to focus on manufacturing efficiency, product quality and operational consistency. The Company also has an established base of manufacturing machinery and equipment to support production across its product categories.

Quality and Certifications

Quality and product reliability remain important areas of focus for Your Company. Your Company has an ISO 9001:2015 Quality Management System certification covering the manufacture, export and supply of cPVC, uPVC, SWR and PVC pipes and fittings. Your Company also holds applicable BIS certifications for various products.

Your Company continues to undertake quality checks through its in house laboratory and manufacturing processes to ensure that products conform to applicable specifications and standards.

Brand and Marketing

Your Companys products are marketed under the registered "VIGOR" brand. Your Company has undertaken brand-building and promotional initiatives through various marketing channels, including social media, and has also associated with a brand ambassador to enhance brand visibility.

Your Company has developed a dealer and distributor-led distribution network to market and distribute its products across various regions. The dealer and distributor network increased from 440 as at March 31, 2025 to 535 as at March 31, 2026, and further increased to 558 as at June 30, 2026. This expansion reflects the Companys continued efforts towards strengthening its market reach and product availability.

Distribution Network

Your Company follows a dealer and distributor led distribution model, under which products are supplied to distributors and dealers who subsequently sell them to end customers. Over the years, Your Company has developed a network covering multiple states and Union Territories across India.

The Companys distribution network has expanded significantly. The number of dealers and distributors increased from 440 as at March 31, 2025 to 535 as at March 31, 2026, reflecting continued expansion of Your Companys market presence. The network further increased to 558 as at June 30, 2026.

Your Company also uses its warehouses to maintain inventory based on market requirements and to facilitate timely fulfilment of orders. The Company has historically operated branch offices that also serve as warehouses, supporting distribution across different regions.

Subsequent to the end of FY 2025-26, Your Company commenced commercial operations at three new warehouse facilities located at Bhavnagar, Gujarat; Upleta, Rajkot, Gujarat and Lucknow, Uttar Pradesh.

The commencement of operations at these facilities is intended to strengthen Your Companys warehousing and logistics infrastructure, improve inventory management, reduce transportation and delivery timelines and enable faster and more efficient distribution of products.

The expansion has been undertaken in support of the Companys growing dealer and distributor network and is expected to improve product availability, logistics efficiency and customer servicing across key markets.

Market Presence and End -Use Segments

Your Companys products cater to four principal end-use sectors:

Segment	Key Applications
Residential	Plumbing, potable water supply and related applications
Commercial	Plumbing, water supply and drainage
Agricultural	Irrigation and agricultural water distribution
Industrial	Water distribution, plumbing and industrial applications

Your Companys presence across residential, commercial, agricultural and industrial sectors provides a diversified end-user base and enables it to cater to varied market requirements across its product categories.

Your Company continues to focus on strengthening its distribution network and enhancing distribution efficiency. The Companys strategy includes expanding its warehousing infrastructure, improving product availability and delivery efficiency, scaling manufacturing capacity in line with market requirements and strengthening relationships with dealers and distributors.

The continued expansion of the dealer and distributor network, together with the addition of strategically located warehouses, is expected to enhance Your Companys market reach, improve product availability and delivery timelines, and strengthen its overall market presence.

Business Outlook

Your Company remains focused on strengthening its manufacturing capabilities, expanding its distribution and warehousing network, enhancing product availability and improving operational efficiencies. With its diversified product portfolio, established "VIGOR" brand, growing dealer and distributor network and presence across residential, commercial, agricultural and industrial applications, Your Company intends to continue building its market presence and pursuing sustainable growth.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

Your Company operates in a single reportable business segment, being the manufacturing and supply of PVC, uPVC and cPVC pipes, fittings and related products. Accordingly, the Companys financial performance is assessed at the overall business level.

For performance analysis, Your Companys products are broadly classified into Pipes and Fittings and Other Ancillary Products. As disclosed in the Companys Prospectus, the product portfolio under these categories comprises cPVC Pipes, uPVC Pipes, Agriculture Pipes, SWR Pipes, cPVC Fittings, uPVC Fittings, Agriculture Fittings, SWR Fittings, P.T.M.T. Taps, garden pipes and other ancillary products.

	Product-wise Performance
Product Category	FY 2025-26 Revenue (Rs. in lakh)	% of Revenue	FY 2024-25 Revenue (Rs. in lakh)	% of Revenue	FY 2023-24 Revenue (Rs. in lakh)	% of Revenue
Pipes	2,519.35	38.26%	2,094.21	45.95%	1,684.02	39.64%
Fittings & Other Ancillary Products	4,066.04	61.74%	2,463.58	54.05%	2,564.06	60.36%
Total	6,585.38	100.00%	4,557.79	100.00%	4,248.08	100.00%

During FY 2025-26, revenue from Pipes increased from Rs.2,094.21 lakh to Rs.2,519.35 lakh, representing growth of approximately 20.30%. Revenue from Fittings and Other Ancillary Products increased from Rs.2,463.58 lakh to Rs.4,066.04 lakh, representing growth of approximately 65.05%. Consequently, the contribution of Fittings and Other Ancillary Products to total revenue increased from 54.05% to 61.74%, while the contribution of Pipes moderated from 45.95% to 38.26%. The product mix reflects the Companys continued growth across its diversified product portfolio.

Your Companys single-segment business model, supported by a diversified product portfolio, enables it to cater to varied requirements across plumbing, irrigation, water distribution and SWR applications. Your Company continues to focus on strengthening its product portfolio, improving operational efficiencies and expanding its market presence.

OPPORTUNITIES AND THREATS

The operating environment for the plastic piping industry presents both growth opportunities and business challenges. The continued development of infrastructure, housing, irrigation, water supply and sanitation, together with increasing demand for quality and efficient piping solutions, provides opportunities for growth. At the same time, the industry remains exposed to factors such as competitive intensity, volatility in raw material prices, changes in demand across key end-use sectors and evolving regulatory requirements.

Your Company continues to focus on leveraging the opportunities arising from its diversified product portfolio, growing distribution network, expanding warehousing infrastructure and established "VIGOR" brand, while strengthening operational efficiencies and maintaining product quality to address the challenges associated with the industry.

Opportunities

The Indian plastic piping industry presents several opportunities for Your Company, supported by continued development in infrastructure, housing, irrigation, water supply and sanitation. The increasing emphasis on efficient water management and development of water-distribution infrastructure is expected to support the long-term demand for piping solutions.

Your Companys diversified product portfolio comprising PVC, uPVC and cPVC pipes and fittings, including agriculture and SWR products, enables it to cater to requirements across residential, commercial, agricultural and industrial applications.

The expansion of Your Companys dealer and distributor network and the addition of strategically located warehouses provide opportunities to improve market reach, product availability and delivery efficiency. The Companys growing distribution infrastructure is also expected to facilitate deeper penetration into existing markets and expansion into new markets.

The increasing preference for standardised, durable and quality-assured piping products presents an opportunity for Your Company to strengthen its presence in the organised piping market. Your Companys "VIGOR" brand, product portfolio and quality certifications provide a foundation for further strengthening its market position.

Continued investment in water supply, irrigation, sanitation, housing and infrastructure development, including relevant Government initiatives, may provide further opportunities for the Companys products.

Threats

The plastic piping industry is highly competitive, with organised manufacturers, regional players and unorganised manufacturers operating across various markets. Intense competition on pricing, product quality, distribution reach and brand positioning may put pressure on margins and market share.

Volatility in the prices of key raw materials, particularly PVC and other polymer-based inputs, remains an important risk for the industry. Any significant increase in raw material costs may adversely affect operating margins, particularly where such increases cannot be fully passed on to customers.

The Companys business is also influenced by the level of activity in the construction, infrastructure and agricultural sectors. Any slowdown in housing, construction, infrastructure spending or agricultural activity may adversely affect demand for the Companys products.

Changes in Government policies, regulations, quality standards and environmental requirements may increase compliance requirements or operating costs for manufacturers in the plastic products industry.

Logistics costs, availability of raw materials, transportation disruptions and changes in market conditions may also affect the Companys operations and profitability.

Your Company remains focused on strengthening its manufacturing and distribution capabilities, maintaining product quality, improving operational efficiencies and broadening its market presence to effectively address these opportunities and mitigate the associated challenges.

OUTLOOK

The outlook for the Indian plastic piping industry remains positive, supported by continued development in housing, infrastructure, water supply, sanitation, irrigation and urbanisation. Increasing emphasis on efficient water management and expansion of water-distribution infrastructure is expected to support the demand for pipes and fittings over the medium to long term.

Your Company believes that the continued development of residential, commercial, agricultural and industrial infrastructure presents opportunities for sustained growth. The increasing preference for durable, standardised and quality-assured piping solutions is also expected to support opportunities for organised manufacturers.

Your Company remains focused on leveraging these opportunities through its diversified product portfolio, growing dealer and distributor network, expanding warehousing infrastructure and established "VIGOR" brand. The Company will continue to focus on improving product availability, strengthening market penetration, enhancing manufacturing and operational efficiencies and maintaining product quality.

The commencement of operations at three additional warehouses at Bhavnagar, Upleta and Lucknow subsequent to FY 2025-26, together with the expansion of the dealer and distributor network, is expected to strengthen Your Companys distribution capabilities and enable more efficient servicing of customers across key markets.

Your Company will continue to focus on expanding its market presence, strengthening its product portfolio and distribution network, improving operational efficiency and scaling its manufacturing capabilities in line with market requirements, while maintaining prudent cost management and product quality.

RISK AND CONCERNS

Your Companys business is exposed to various industry, operational, market and regulatory risks. Volatility in the prices of PVC and other polymer-based raw materials may affect production costs and operating margins, particularly where increases cannot be fully passed on to customers. The plastic piping industry is highly competitive, with organised, regional and unorganised players, and competition in terms of pricing, product quality, product range, brand and distribution may impact market share and margins. Demand for Your Companys products is influenced by activities in the residential, commercial, agricultural and industrial sectors, and any slowdown in construction, infrastructure, housing or agricultural activities may adversely affect demand.

Your Company may also face operational and supply-chain risks arising from manufacturing disruptions, machinery breakdowns, raw material availability, transportation constraints and logistics disruptions, which may affect production and timely delivery of products. Further, maintaining product quality and compliance with applicable standards and regulatory requirements remains important to safeguard customer confidence and the Companys reputation.

Your Company seeks to mitigate these risks through prudent cost management, quality control, operational efficiency, diversification of its product portfolio and strengthening of its dealer, distributor and warehousing network. The Company continues to monitor market conditions and regulatory developments and takes appropriate measures to manage identified risks.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Your Company maintains adequate internal control procedures commensurate with its size and the nature of its business operations in India. Well-defined policies, guidelines and procedures form the foundation of the Companys internal control framework.

The effectiveness of these controls, covering the Companys business processes and financial reporting mechanisms, is regularly reviewed by the Management and the Internal Auditors. Internal audits are conducted periodically to identify potential weaknesses and recommend improvements for enhancing operational efficiency and strengthening internal controls.

The findings and recommendations of the Internal Auditors are reviewed by the Audit Committee, which oversees the implementation of appropriate corrective actions to ensure that the Companys internal control systems remain robust and effective.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

		(Rs. in Lakhs)
Particulars	FY 25-26	FY 24-25
Revenue From Operations	6,585.38	4,557.79
Other Income	4.39	44.01
Total Income	6,589.77	4,601.80
Less: Total Expenses before Depreciation, Finance Cost and Tax	4756.62	3341.55
Profit Before Depreciation, Finance Cost and Tax (EBITDA)	1833.15	1260.25
Less: Depreciation	476.65	391.09
Less: Finance Cost	137.77	180.71
Profit Before Tax	1,218.73	688.45
Less: Current Tax	317.54	172.81
Less: Deferred tax Liability (Asset)	(11.17)	(2.52)
Profit After Tax (PAT)	912.37	518.16

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS

Your Company considers its employees an important contributor to its sustained growth and remains focused on fostering a performance-oriented and competency-driven work culture based on accountability, transparency and continuous improvement.

During the year under review, Your Company continued to focus on employee development, skill enhancement and organisational effectiveness through appropriate training, performance management and employee engagement initiatives.

As on March 31,2026, Your Company had 66 full-time employees. The Company continues to focus on effective utilisation of its human resources and maintaining a positive and productive work environment.

Industrial relations during the financial year remained cordial and harmonious. The Management remains committed to strengthening employee capabilities and developing talent in line with the Companys business requirements and growth objectives.

KEY FINANCIAL RATIOS:

Ratio	Figures As At 31.03.2026	Figures As At 31.03.2025	% Change From Last Year	Explanation for Change in Ratio (for more than 25% in comparison with last year)
Current Ratio	1.76	0.63	177.38%	As the sales of the company has increased that resulted in revenue generation which in turn increased current assets particularly inventories and advances to suppliers & therefore current assets has increased drastically compared to previous year. Hence ratio varies.
Debt-Equity Ratio	0.16	1.37	(88.06%)	Due to Proceeds from Initial Public offer (IPO) during the year, Shareholders Equity increased and also the Debt has been paid from these proceeds which results in decrease in ratio.
Debt Service Coverage Ratio	4.79	1.78	168.52%	As Proceeds from IPO has been utilized for repayment of borrowings, Debt service during the year has been decreased drastically, which results in increase in ratio.
Interest Coverage Ratio	13.31	6.73	97.70%	Due to repayment of term loan, interest expense decreases and due to increase in revenue, profitability is also increased. So, ratio increases
Return on Equity Ratio	0.34	0.58	(40.98%)	Due to Proceeds from Initial Public offer (IPO) during the year, Shareholders Equity increased. So, Return on Equity Ratio decreases.
Inventory turnover ratio	3.28	3.46	(5.18%)	?
Trade Receivables turnover ratio	16.26	18.72	(13.12%)	?
Trade payables turnover ratio	5.90	4.27	37.95%	Due to efficient utilization of Working capital, average trade payable less increased compared to total purchase, which results in increase in ratio.
Net capital turnover ratio	1.98	2.41	(17.54%)	?
Net profit ratio	13.85%	11.37%	21.87%	?
Operating Profit Margin	26.60%	19.07%	8.02%	?
Return on Capital employed	0.41	0.46	(10.93%)	?
Return on investment	?	?	?	?

CAUTIONARY STATEMENT

This Report contains forward-looking statements that reflect Your Companys current views and expectations regarding its future business, operations and financial performance. These statements are based on certain assumptions and expectations and are subject to various risks and uncertainties.

Actual results, performance or achievements may differ materially from those expressed or implied in such forward-looking statements due to various factors, including changes in the regulatory environment, economic conditions, market conditions, interest rates, raw material prices, foreign exchange fluctuations and other factors beyond the Companys control.

Your Company does not undertake any obligation to publicly update or revise any forward-looking statements in response to future events, developments or new information, except as may be required under applicable laws and regulations. Readers are advised to exercise caution and not to place undue reliance on such forward - looking statements.

Registered office:	For and on behalf of Board of Directors
Survey No. 640/3, Behind Gujarat Gas CNG Pump Godown Zone, Lalpur Road, Dared, Village, Chela, Jamnagar, Jamnagar, Gujarat, India, 361006	Vigor Plast India Limited
	CIN:L25190GJ2014PLC078525
	Sd/-	Sd/-
	Jayesh Premjibhai Kathiriya	Rajesh Premjibhai Kathiriya
	Chairman and Managing Director	Whole Time Director
Place: Jamnagar		DIN:06784756
Date: September 05, 2026	DIN:06784737