Walpar Nutritions Ltd Management Discussions

1. Global Economic Overview:

The global economy remained resilient during the financial year 2025-26, notwithstanding continuing geopolitical uncertainties, uneven inflation trends, fluctuations in commodity prices and evolving trade and regulatory conditions. The healthcare and wellness sector continued to benefit from increasing consumer awareness regarding preventive healthcare, nutrition, immunity, healthy lifestyles and overall well-being.

The growing emphasis on preventive healthcare and wellness has supported demand for nutraceuticals, dietary supplements, herbal products, functional nutrition and other wellness-oriented products. At the same time, businesses operating in these sectors continue to remain exposed to changing regulatory requirements, raw-material prices, supply-chain conditions and competitive pressures across international markets.

2. Indian Economic Overview:

India continued to demonstrate resilience and remained among the major fast-growing economies, supported by domestic consumption, infrastructure development, digitalisation and increasing formalisation of economic activity.

The healthcare, pharmaceutical, nutraceutical, herbal and Ayurvedic sectors continue to benefit from rising health awareness, increasing healthcare expenditure, expansion of organised retail, growth of e-commerce and greater consumer acceptance of preventive healthcare and traditional systems of medicine.

The increasing adoption of digital channels, changing consumer lifestyles and growing interest in nutritional and wellness products provide opportunities for companies operating in the healthcare and wellness segment. The continued development and promotion of Indias traditional systems of medicine also provides a favourable environment for businesses engaged in Ayurvedic and herbal products.

3. Industry Structure and Developments:

The Indian pharmaceutical, nutraceutical, herbal and Ayurvedic industry continues to evolve in response to changing consumer preferences, increasing health consciousness and greater emphasis on preventive healthcare.

Demand for nutritional supplements, herbal formulations, Ayurvedic products, functional nutrition and wellness-oriented products is being supported by consumers seeking products that complement healthier lifestyles. The growth of e-commerce and digital marketing has further expanded the reach of healthcare and wellness products beyond traditional distribution channels.

The industry remains competitive and is subject to regulatory requirements relating to product quality, manufacturing, labelling, claims, safety and marketing. Accordingly, product quality, regulatory compliance, innovation, brand development, distribution efficiency and customer confidence remain important factors for sustainable growth.

4. Business Overview:

Walpar Nutritions Limited ("the Company") is engaged in the manufacturing and trading of Pharmaceutical, Nutraceutical, Herbal and Ayurvedic commodities. The Company operates predominantly in a single business segment.

The Companys business model combines manufacturing, marketing and trading activities and enables it to cater to customers through both conventional distribution channels and digital platforms. The Company also seeks to leverage its product and manufacturing capabilities to address opportunities in nutritional, healthcare and wellness categories.

The Company remains focused on maintaining product quality, strengthening its market presence, expanding its product portfolio and improving operational efficiency while pursuing sustainable and profitable growth.

The Companys key business priorities include:

- Expansion and rationalisation of the product portfolio;

- Strengthening dealer, distributor and customer relationships;

- Increasing market penetration and geographical reach;

- Enhancing brand visibility and customer engagement;

- Maintaining consistent product quality and regulatory compliance;

- Improving manufacturing and operational efficiency;

- Expanding digital and online sales channels; and

- Creating sustainable long-term value for stakeholders.

5. Opportunities:

The Company believes that the following factors may provide opportunities for future growth:

- Increasing demand for preventive healthcare products;

- Rising awareness regarding nutritional supplements;

- Growing acceptance of Ayurvedic and herbal medicines;

- Expansion of online healthcare and e-commerce platforms;

- Increasing disposable income and changing consumer lifestyles;

- Government initiatives promoting indigenous healthcare systems;

- Rising exports of herbal and nutraceutical products;

- Increasing demand from fitness, sports nutrition and wellness sectors;

- Product diversification into specialised nutritional categories;

- Strategic collaborations with healthcare professionals and distributors;

- Growing demand for private label manufacturing; and

- Adoption of digital marketing and direct-to-consumer sales models.

6. Threats:

The Company remains vigilant towards various external and internal risks including:

- Intense competition from domestic and multinational companies;

- Regulatory changes governing pharmaceutical and nutraceutical products;

- Fluctuation in prices of active ingredients and raw materials;

- Supply chain disruptions;

- Counterfeit and sub-standard products affecting market confidence;

- Technological changes requiring continuous innovation;

- Increasing customer expectations regarding product quality and pricing;

- Inflationary pressures affecting operating costs;

- Foreign exchange fluctuations impacting imported raw materials; and

- Dependence on regulatory approvals for certain products.

7. Segment-wise Performance:

The Company is engaged in the business of manufacturing, marketing and trading of Pharmaceutical, Nutraceutical, Herbal and Ayurvedic products. Since all operations are substantially carried out in one reportable business segment, segment-wise reporting is not applicable.

During the year, the Company continued to strengthen sales channels while maintaining focus on customer satisfaction, product quality and timely delivery.

8. Operational Performance:

During FY 2025-26, the Company maintained stable operational performance. The management continued to emphasise:

- Efficient production planning;

- Optimum utilisation of available resources;

- Cost optimisation;

- Timely procurement of raw materials;

- Inventory management;

- Customer relationship management;

- Product quality enhancement; and

- Expansion initiatives for future growth.

The Companys focus remained on building a sustainable business model capable of delivering consistent long-term value.

9. Financial Performance

The financial performance of the Company improved during FY 2025-26. The Company continued to focus on revenue growth, operational efficiency, cost management and prudent utilisation of financial resources.

Standalone Financial Performance:

The key standalone financial indicators are summarised below:

(Amt. in Lakhs)

Particulars	FY 2025-26	FY 2024-25
Revenue from Operations	6,529.88	6,016.16
Profit After Tax	196.53	169.26

Consolidated Financial Performance:

(Amt. in Lakhs)

Particulars	FY 2025-26	FY 2024-25
Revenue from Operations	7,879.00	7176.33
Profit After Tax	247.44	232.44

The audited financial results for FY 2025-26 were approved by the Board of Directors on 28th May 2026. The financial results and related disclosures are available through the Companys stock-exchange filings.

10. Outlook:

The management remains optimistic about the future growth prospects of the Company. Growing consumer awareness regarding health and wellness, increasing demand for nutraceutical products and expansion of digital healthcare platforms are expected to create significant business opportunities.

Going forward, the Company intends to:

- Expand geographical presence;

- Strengthen dealer and distributor networks;

- Increase online sales;

- Introduce innovative healthcare and wellness products;

- Enhance manufacturing capabilities;

- Improve customer engagement;

- Invest in branding and promotional activities; and

- Focus on sustainable and profitable growth.

11. Risks and Concerns:

Risk management remains an integral part of the Companys business strategy. Management continuously evaluates business risks and implements suitable mitigation measures.

Major risks include:

- Regulatory and statutory changes;

- Market competition;

- Raw material price volatility;

- Supply chain disruptions;

- Technology obsolescence;

- Product liability risks;

- Credit risk from customers;

- Liquidity and working capital risks;

- Cybersecurity and data protection risks; and

- Economic slowdown affecting consumer demand.

Appropriate internal processes have been established to monitor these risks on a continuous basis.

12. Internal Control Systems and Their Adequacy:

The Company has an adequate system of internal financial controls commensurate with the size and nature of its operations. These controls are designed to ensure:

- Safeguarding of assets;

- Accuracy and reliability of accounting records;

- Compliance with applicable laws and regulations;

- Prevention and detection of fraud and errors;

- Efficient utilisation of resources;

- Timely preparation of financial statements; and

- Authorisation and monitoring of business transactions.

The management periodically reviews the effectiveness of internal controls and takes corrective actions wherever required.

13. Quality Assurance and Regulatory Compliance:

Quality remains one of the Companys highest priorities. The Company follows established quality control procedures throughout procurement, manufacturing, storage and distribution processes.

The Company is committed to complying with applicable statutory and regulatory requirements relating to pharmaceutical, nutraceutical, herbal and Ayurvedic products and continuously monitors changes in the regulatory environment.

14. Information Technology:

The Company continues to leverage information technology for improving operational efficiency, inventory management, accounting, customer service and business decision-making. Digital platforms have enabled improved customer engagement and enhanced operational effectiveness.

15. Human Resources and Industrial Relations:

The Company firmly believes that its employees are the cornerstone of its success. During the year, management continued to focus on employee development through training, skill enhancement and performance-based growth opportunities.

The Company promotes a work culture based on professionalism, integrity, teamwork and continuous improvement. Employee welfare and workplace safety remain key priorities.

Industrial relations during the year remained cordial and harmonious. There were no significant industrial disputes affecting business operations.

16. Environmental, Health and Safety:

The Company remains committed to conducting its business in an environmentally responsible manner. It strives to comply with applicable environmental, health and safety regulations and encourages responsible use of natural resources wherever feasible.

17. Corporate Governance:

The Company continues to uphold the principles of transparency, accountability, ethical business practices and sound corporate governance. Management believes that effective governance enhances stakeholder confidence and contributes to sustainable long-term growth.

18. Cautionary Statement:

Statements made in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may constitute "forward-looking statements" within the meaning of applicable laws and regulations. Actual results may differ materially due to various factors including changes in economic conditions, government policies, market demand, competition, regulatory developments, technological changes and other risks beyond the Companys control. The Company assumes no responsibility to publicly amend or revise such forward-looking statements except as required under applicable laws.

Registered Office:

2nd Floor L5:377 PLOT:5, Opp. Sabarmati,

Village: Khatraj, Taluka: Kalol, Gandhinagar,

Gujarat, India – 382721.

Place: Gandhinagar

Date: 29th August, 2026

By the Order of the Board of

Walpar Nutritions Limited

Sd/-

Tanmaykumar Shah

Whole-time Director

DIN: 08984640

Sd/-

Kalpesh Ladhawala

Managing Director

DIN: 02849232