Pil Italica Lifestyl Chairman Speech

FY26 was a year that tested resilience across industries and markets globally. Heightened geopolitical tensions, volatile crude oil prices, inflationary pressures, and global supply chain disruptions created a challenging operating environment for businesses worldwide. Despite these headwinds, India continued to remain one of the fastest-growing major economies supported by strong domestic demand, infrastructure-led growth, rising urbanization, and improving consumer aspirations.

Against this backdrop, PIL Italica Lifestyle Limited continued to demonstrate resilience, operational discipline, and strategic focus while strengthening its long-term growth foundations. Guided by our philosophy of “Designing Comfort. Delivering Growth.”, we continued to focus on product innovation, manufacturing expansion, brand visibility, market penetration, and operational excellence.

Financial Performance

During FY26, your Company delivered steady operational performance despite significant cost pressures arising from elevated polymer and raw material prices linked to volatility in global crude oil markets.

The sharp increase in crude oil prices during the year, driven by ongoing geopolitical conflicts and war-related disruptions, significantly impacted procurement costs across the plastics and polymers industry. Since raw materials constitute a substantial portion of the Company’s operating costs, the industry witnessed pressure on margins during the year.

Despite these external challenges, PIL Italica remained focused on operational efficiencies, product mix optimization, strategic sourcing initiatives, and disciplined cost management.

Your Company reported Total Income of '' 108.70 Crore during FY26 as against '' 100.83 Crore in FY25, reflecting stable growth amidst a challenging demand environment. EBITDA reduced to '' 9.33 Crore as compared to '' 10.04 Crore in the previous year, also EBITDA margins reduced from 9.96% to 8.59%. Profit After Tax stood at '' 4.49 Crore as against '' 5.24 Crore in FY24, reflecting the Company’s continued focus on profitability and operational efficiency.

These results reflect the strength of our brand, disciplined execution capabilities, and our ability to navigate a volatile external environment while continuing to invest for longterm growth.

At PIL Italica, we strongly believe that stronger visibility creates stronger consumer preference. Over the years, the Company has steadily strengthened its market presence and transformed itself into a widely recognized lifestyle furniture brand across India. During the year, we continued to expand our dealer, distributor, and channel partner network across strategic markets to deepen market penetration and improve customer accessibility.

Our efforts remained focused on ensuring that Italica products are visible and available across every nook and corner of the country. We continued to strengthen our retail presence through dealer branding initiatives, regional campaigns, outdoor advertising, product demonstrations, exhibitions, and focused digital marketing activities. We also strengthened our social media and e-commerce presence to align with changing consumer buying patterns and increasing digital adoption. These initiatives continue to strengthen our consumer connect and reinforce Italica’s positioning as a trusted and aspirational lifestyle furniture brand.

Innovation continues to remain at the core of our growth strategy. Consumer lifestyles are evolving rapidly, and we remain committed to developing innovative, contemporary, and value-added products aligned with changing market preferences. During the year, the Company continued to work on expanding its premium and lifestyle-oriented product portfolio while strengthening adjacent categories including storage solutions, crates, waste bins, and utility products. Our continuous focus on product development, design enhancement, aesthetics, comfort, and functionality continues to strengthen customer engagement and longterm growth opportunities.

Over the last few years, PIL Italica has steadily expanded its footprint beyond its traditional strong markets and strengthened its pan-India presence across Northern, Eastern, Southern, and emerging regions. Our growing

dealer and distributor ecosystem, fulfillment capabilities, and focused market expansion initiatives continue to improve accessibility, product availability, and customer servicing standards across markets.

Today, the Company has established a strong and growing pan-India distribution ecosystem comprising over 4,538 dealers, including 410 direct dealers and 216 distributors, catering to customers across 22 States and Union Territories. This extensive network is further supported by 13 strategically located fulfillment centres, enabling efficient product availability, faster delivery timelines, and improved customer servicing capabilities across regions. The continued expansion of our dealer, distributor, and fulfillment infrastructure remains central to strengthening Italica’s visibility and accessibility across every nook and corner of the country.

Sustainability continues to remain an integral part of our long-term growth philosophy. The Company remains committed towards environmentally responsible manufacturing practices, efficient resource utilization, waste recycling initiatives, and continuous operational improvement. We continue to strengthen sustainable manufacturing processes in line with evolving environmental expectations and responsible business practices.

The long-term outlook for the Indian lifestyle furniture industry continues to remain positive, supported by rising urbanization, increasing housing demand, infrastructure development, growing middle-class consumption, and evolving consumer lifestyles. Backed by a strong brand, expanding manufacturing capabilities, wider distribution reach, continuous product innovation, and disciplined execution, your Company remains well-positioned to capitalize on emerging growth opportunities in the Indian furniture and lifestyle products market.

As we move forward, our focus remains firmly on strengthening market penetration, launching innovative and value-added products, enhancing operational efficiencies, expanding manufacturing and distribution capabilities, and delivering sustainable and profitable growth.

On behalf of the Board of Directors, I would like to sincerely thank our shareholders, customers, channel partners, employees, bankers, and all stakeholders for their continued trust, confidence, and unwavering support.

Together, we will continue to strengthen the Italica brand and build a future-ready organization committed to excellence, innovation, and sustainable growth.