Yuvraaj Hygiene Products Ltd Management Discussions

The information, opinions and views expressed in this section of the Annual Report contain certain forward looking statements which involve risks and uncertainties. The Management has made its best efforts to present this discussion/analysis and believes these to be true to the best of its knowledge at the time of its preparation. The Management is not responsible to publicly update or revise any of these forward looking statements whether on the basis of new information, future events or otherwise. The Management shall not be liable for any loss which may arise as a result of any action taken on the basis of information, opinion or views contained herein. The reproduction, disclosure or use of the information contained herein without express prior written permission of the company is strictly prohibited.

A. INDUSTRY STRUCTURE AND DEVELOPMENTS:

The Company is engaged in the business of manufacturing and supplying of Hygiene and Cleaning Products as well as Insecticide products with a nationwide presence.

During the year under review, the Company continued to evaluate opportunities for business expansion and diversification in line with changing market dynamics and emerging customer requirements. As part of this strategy, the Company initiated steps to diversify its operations into the warehousing and storage solutions segment. The initiative is aimed at broadening the Companys product portfolio, accessing new market opportunities, catering to emerging customer requirements, and creating additional avenues for long-term and sustainable business growth.

As part of the aforesaid diversification, the Company has introduced new product lines relating to warehousing and storage solutions. The Company expects these initiatives to support the expansion of its business operations and customer base and to contribute towards strengthening its overall business and financial performance over the medium to long term. The benefits arising from these initiatives will, however, depend upon market acceptance, demand conditions, competitive environment, execution capabilities, and other external and internal factors.

The Company believes that the evolving industry landscape presents opportunities for businesses with the ability to offer quality products, respond to changing customer requirements, and adapt to emerging market trends. The Companys diversification into warehousing and storage solutions represents an important step towards broadening its business portfolio and creating additional avenues for growth. Going forward, the Company intends to focus on strengthening its existing product portfolio, expanding its presence in the warehousing and storage solutions segment, developing new product offerings, improving operational efficiencies, and enhancing customer reach. The Company will continue to assess market opportunities and undertake initiatives that are aligned with its business strategy and long-term objectives.

B. OPPORTUNITIES AND THREATS:

The Company operates in sectors that continue to offer significant growth opportunities, supported by increasing awareness of personal hygiene, sanitation, and health, coupled with rising disposable incomes and improving standards of living. The post-pandemic shift towards greater hygiene consciousness, urbanisation, and expanding middle-class and rural markets is expected to support demand for hygiene and cleaning products. Growing institutional and commercial activities, along with the development of organised retail, e-commerce, and digital channels, provide further opportunities for market expansion, particularly in Tier 2 and Tier 3 cities. The increasing preference of consumers, retailers, and distributors for branded and quality products also presents opportunities for organised players.

At the same time, the industry remains highly competitive, with the presence of domestic and multinational players, which may result in pricing pressure and margin challenges. The availability of substandard and counterfeit products may also impact consumer confidence and brand reputation. Further, the traditionally fragmented and unorganised nature of the household cleaning market presents operational and competitive challenges. Nevertheless, the gradual shift in consumer demand from unorganized products towards branded and quality offerings is expected to provide favourable opportunities for established and organized players in the sector.

The Company remains focused on leveraging emerging market opportunities, strengthening its product portfolio and distribution network, and maintaining product quality and customer confidence, while continuing to monitor and manage the risks and challenges associated with the industry.

C. SEGMENT WISE OR PRODUCT WISE PERFORMANCE:

The Company is engaged in the manufacturing and selling of personal hygiene products, outdoor cleaning products & other household cleaning related items. In addition, the Company manufactures insecticide products and inventory management related items such as storage containers and dividers.

Hygiene and Cleaning Products Segment:

This segment continues to be the primary revenue contributor for the Company. However, during the year under review, the Company witnessed a decline in demand for hygiene and cleaning products. The drop is attributed to market normalization post-pandemic, despite sustained awareness of hygiene and continued institutional demand from hospitals, corporate offices, and public infrastructure.

Key Products: Surface disinfectants, scrub pads, floor cleaners, toilet cleaners, kitchen hygiene solutions.

Performance Highlights: o Strong performance in urban and semi-urban markets. o Growth in institutional sales through bulk supply contracts. o E-commerce platforms.

Insecticide Products Segment:

The Company entered the insecticide segment during the year under review. Despite being a new entrant, the segment demonstrated encouraging growth. Strategic pricing and targeted marketing allowed the Company to generate strong revenues, even amidst high competition.

Key Products: Mosquito repellents (liquid, coils), insect sprays, pest control solutions.

Performance Highlights: o Seasonal spikes and high-density residential areas drove increased product demand. o Rural market presence expanded through a distributor-led sales network. o Continued investments were made in the development of safer, low-odor formulations to improve product differentiation.

Warehousing and Storage Solutions Segment:

As part of its diversification strategy, the Company entered the warehousing and storage solutions segment. Though still at an early stage, the segment has shown promising potential, with initial interest and orders from industrial and logistics sector clients.

Key Products: Warehouse cleaning solutions, storage racks, dividers, and accessories.

Performance Highlights: o Strategic collaborations initiated with warehouse operators and logistics companies. o Pilot implementations were carried out in select metropolitan locations. o Revenue contribution from this segment remains modest but is expected to grow significantly in the coming years.

D. OUTLOOK:

The Company continues to focus on strengthening its presence across the country and expanding its market reach. During the year under review, the Company remained focused on broadening its product portfolio and strengthening its retail and distribution network, with the objective of enhancing customer reach, increasing market penetration, and creating sustainable opportunities for future growth.

E. RISKS AND CONCERNS:

As the company operates in the hygiene, insecticides and warehousing products which is associated with the high consumable products which directly leads to increase in cost of productions and cost of inventory it is always a matter of concern to the Company, but through the effective inventory management system, the risk has been reduced to the minimal. Rapid changes in consumer preferences such as a move toward organic, herbal, or eco-friendly products which may reduce demand for traditional offerings if the Company does not innovate and adapt in time. The warehousing and storage solutions segment is still in its early stages. Any delay in execution, lack of market acceptance, or unforeseen operational challenges may affect the scalability and profitability of this segment.

F. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company believes that Internal Control is necessary for good corporate governance. The Company is having adequate Internal Control Systems commensurate to the nature and level of operations of the Company. The Company takes adequate measures to undertake internal audits at regular intervals to review the Compliance of various policies and guidelines and to ensure reliability and credentials of all records and financial statements of the Company.

G. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

The financial statements are prepared in accordance with Section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ( Ind AS ) and other accounting principles generally accepted in India. The results of the operations are discussed in the Board s Report, which forms part of this Annual Report.

H. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES:

The Company strives to remain as a responsive and market-driven organization, which requires a very good quality of manpower resources. Retaining young and talented human resources continues to be a challenge in the present business environment. The Company regards its human resources as one of its most valuable assets. It reviews its policies proactively. It ensures that they create a work environment that encourages initiative, provides challenges and opportunities and appreciates the potential of the employees. Satisfaction of employees is the ongoing concern of the management. The Company continues to focus on human resource development. As on March 31, 2026, the Company had 40 permanent employees on its payroll.

I. DETAILS OF SIGNIFICANT CHANGES:

Sr. No. Ratios	2025-26	2024-25	Difference (In %)	Reasons if difference is more than 25%
1. Debtors Turnover Ratio (in times)	7.78	22.24	-65.02%	Trade receivables turnover ratio has decreased due to decrease in sales & increase in trade receivables as compared to previous year.
2. Inventory Turnover Ratio (in times)	2.89	6.33	-54.39%	Inventory turnover ratio has decreased due decrease in Cost of Goods sold as compared to previous year.
3. Interest Coverage Ratio (in times)	-	-	-	Interest Coverage Ratio is not calculated as the debt of the company includes only unsecured interest-free loan taken from the promoters Mr. Vishal Kampani and Mrs. Benu Kampani.
4. Current Ratio (in times)	2.38	1.61	48.39%	Current ratio has increased on account substantial increase in current assets compared to previous year.
5. Debt Equity Ratio (in times)	2.73	5.96	-54.24%	Debt-equity ratio has decreased due to an increase in Shareholders Equity as on 31st March, 2026 as compared to previous year.
6. Operating Profit Margin	43.83	43.06	1.79%	Operating Profit Margin has increased on account substantial increase in current assets compared to previous year.
7. Net profit (Loss) Margin	8.55	12.68	-32.55%	Net Profit/(loss) ratio has reduced due to decrease in revenue from operations & net profit for the current year as compared to the previous year
8. Return on Equity	65	0	65%	Return on equity ratio cannot be calculated for previous year (FY 24-25) as the average shareholders equity for that year is negative.

J. CAUTIONARY STATEMENT:

Statements in the Management Discussion and Analysis describing the Company s objectives, projections, estimates, expectations may be forward - looking statement 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 the Company s operations include economic conditions affecting demand/ supply and price conditions in the domestic and overseas markets in which the Company operates, changes in the Government regulations, tax laws and other statutes and other incidental factors. This Report basically seeks to furnish information, as laid down within the different headings to meet the requirements of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

By order of the Board of Directors of

Yuvraaj Hygiene Products Limited

	Sd/-	Sd/-
Place: Navi Mumbai	Vishal Kampan i	Benu Kampani
Date: August 28, 2026	Managing Director	Whole Time Director
	DIN: 03335717	DIN: 01265824