The Company: Supplier 1 accounted for 39.93% of expenses

The Company reported that Supplier 1 accounted for Rs 57.956 crore, or 39.93%, of total expenses in the three-month period ended June 30, 2026. The largest supplier’s share had risen from 32.15% in Fiscal 2024 and 36.27% in Fiscal 2026, indicating increased direct-expense concentration in the latest reported quarter.

How concentrated were The Company’s direct expenses in June 2026?

The Company’s June 2026 supplier spending was concentrated in Supplier 1, which received Rs 57.956 crore and represented 39.93% of total expenses. The concentration table separately states that the top five suppliers represented 64.49% of direct expenses and the top 10 represented 71.89% in the three-month period ended June 30, 2026.

The source uses two related but different labels for its supplier measures. It describes the concentration table as supplier contribution relative to cost of materials consumed, while the detailed table gives each supplier’s amount and percentage of total expenses. Supplier 1’s 39.93% figure is therefore the detailed-table share of total expenses; the top-five and top-10 figures are presented as direct-expense concentration measures.

The Company paid Supplier 2 Rs 17.404 crore, or 11.99% of total expenses, and Supplier 3 Rs 9.459 crore, or 6.52%, during the June 2026 quarter. Supplier 1’s payment was more than three times Supplier 2’s payment, while the nine other suppliers in the top-10 table collectively received Rs 46.574 crore, or 31.96% of total expenses.

How did The Company’s Supplier 1 concentration change over time?

The Company’s Supplier 1 share increased in every disclosed annual comparison and reached 39.93% in the June 2026 quarter. Supplier 1 represented 32.15% of total expenses in Fiscal 2024, 33.81% in Fiscal 2025 and 36.27% in Fiscal 2026, before the latest quarterly reading.

Supplier 1’s share increased by 4.12 percentage points between Fiscal 2024 and Fiscal 2026. The June 2026 quarter was 3.66 percentage points above the Fiscal 2026 share, although the quarter covers three months and is not directly comparable in scale with a full fiscal year.

The Company’s payments to Supplier 1 rose from Rs 113.297 crore in Fiscal 2024 to Rs 147.545 crore in Fiscal 2026, an increase of Rs 34.248 crore. The source does not disclose the supplier’s identity, procurement contract terms, product supplied, alternative sourcing arrangements or reasons for the rising share.

How broad was The Company’s supplier concentration beyond Supplier 1?

The Company’s supplier concentration extended beyond Supplier 1, but the top-10 group’s share changed more sharply than the largest supplier’s annual share. Top-10 suppliers represented 95.90% of direct expenses in Fiscal 2024, 60.26% in Fiscal 2025, 62.70% in Fiscal 2026 and 71.89% in the June 2026 quarter.

The top-five supplier share was 81.18% in Fiscal 2024, 52.22% in Fiscal 2025, 55.38% in Fiscal 2026 and 64.49% in the June 2026 quarter. The Fiscal 2024 top-five and top-10 figures indicate that the source recorded a much larger share among leading suppliers in that year than in Fiscal 2025 or Fiscal 2026.

The Company’s top-10 supplier payments totalled Rs 220.215 crore in Fiscal 2024, Rs 233.297 crore in Fiscal 2025 and Rs 255.073 crore in Fiscal 2026. In the three-month period ended June 30, 2026, the top-10 total was Rs 104.530 crore, with Supplier 1 accounting for more than half of that amount.

The Company names Attitude Life Science Products Private Limited, Aquila Food Metals S.P.A., Borouge Pte Ltd, ExxonMobil Chemical Asia Pacific, Gravita India Limited, Halda Petrochemicals Limited, Kaveri Battery Tooling Enterprise, Hare Krishma Overseas and Prashant Industries among its top 10 suppliers. It does not link any named entity to Supplier 1, and says the remaining supplier names were not disclosed because their concerns were not available.

What does The Company disclose about factors affecting supplier spending?

The Company does not disclose a supplier-diversification plan or a specific mitigation measure for Supplier 1 concentration. The concentration would remain at a similar level only if Supplier 1 continued to receive a comparable proportion of procurement spending and total expenses.

The Company states that its customer industries are seasonal. Battery-casing sales are driven by the battery industry, which experiences higher sales in warmer months and lower sales in colder months, while dairy products, particularly ice creams, affect thinwall product sales in a similar way. This means the 39.93% reading reflects a three-month period whose procurement mix may differ from a full-year mix.

The Company also identifies commodity prices, foreign-exchange rates and interest rates as market-risk factors. Its market-risk disclosure defines market risk as the risk that market-price changes affect income or the value of financial instruments, but it does not quantify commodity-price exposure, Supplier 1 pricing or substitute supply capacity.

How did The Company’s supplier concentration compare with customer concentration?

The Company’s top-10 customer concentration exceeded its top-10 supplier concentration in the June 2026 quarter, although the measures cover different sides of the business. The top 10 customers generated 76.67% of revenue from operations, compared with 71.89% of direct expenses represented by the top 10 suppliers.

Customer 1 generated Rs 44.559 crore, or 27.43% of June 2026 quarter revenue from operations. Supplier 1 received Rs 57.956 crore and represented 39.93% of total expenses, a share 12.50 percentage points above Customer 1’s revenue share.

The top-10 customer share was 76.25% in Fiscal 2024, 78.62% in Fiscal 2025 and 73.45% in Fiscal 2026, before rising to 76.67% in the June 2026 quarter. Over Fiscal 2025 and Fiscal 2026, the top-10 supplier share increased from 60.26% to 62.70%, while Supplier 1’s individual share increased from 33.81% to 36.27%.

The Company reported restated trade receivables of Rs 64.843 crore at June 30, 2026, compared with Rs 65.773 crore in Fiscal 2026. It says credit risk is managed through credit approvals, credit limits and continuing monitoring of customer creditworthiness; the supplied disclosure gives no equivalent programme for supplier concentration.

Conclusion

The Company’s largest disclosed supplier represented 39.93% of total expenses in the June 2026 quarter, following increases from 32.15% in Fiscal 2024 and 36.27% in Fiscal 2026. The broader figures show that the top five suppliers accounted for 64.49% of direct expenses and the top 10 for 71.89%, placing the Supplier 1 reading within a concentrated procurement base.

The next disclosure should show whether Supplier 1 remains near the June 2026 quarter’s share and whether the top-five and top-10 percentages change. The Company has disclosed seasonal demand in battery casings and thinwall products, but it has not disclosed a supplier-diversification plan, Supplier 1’s identity or alternative sourcing capacity.