Accretion Nutraveda Ltd Management Discussions

For the Financial Year Ended 31 March, 2026 CAUTIONARY STATEMENT

Forward looking statement -

Statements in this Management Discussion and Analysis of Financial Condition and Results of Operations of the Company describing the Companys objectives, expectations, or predictions may be forward-looking within the meaning of applicable securities laws and regulations. Forward-looking statements are based on certain assumptions and expectations of future events.

The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. The Company assumes no responsibility to publicly amend, modify, or revise forward-looking statements on the basis of any subsequent developments, information, or events. Actual results may differ materially from those expressed in the statement. Important factors that could influence the Companys operations include changes in government regulations, tax laws, FSSAI guidelines, Ministry of AYUSH mandates, and economic developments within India and globally.

The financial statements are prepared as per the Accounting Standard guidelines and comply with the Accounting Standards notified under Section 129 of the Companies Act, 2013 read with the Companies (Accounting Standards) Rules, 2015. The management of Accretion Nutraveda Limited has used estimates and judgments relating to the financial statements on a prudent and reasonable basis to reflect, in a true and fair manner, the state of affairs and profit for the year.

The following discussions on our financial condition and result of operations should be read together with our audited financial statements and the notes to these statements included in the annual report. Unless otherwise specified, all references herein to “we”, “us”, “our”, “the Company”, “Accretion”, and “ANL” refer to Accretion Nutraveda Limited.

GLOBAL ECONOMY

The global economy demonstrated notable resilience during FY 2025-26, maintaining steady growth despite significant headwinds from trade policy uncertainty and geopolitical tensions. According to the IMF January 2026 World Economic Outlook Update-titled Global Economy: Steady amid Divergent Forces—global real GDP growth held steady at 3.3% in 2025, matching the 2024 outturn and representing an upward revision of 0.2 percentage points from the October 2025 WEO projection. This positive revision was driven by front-loading of trade activity prior to tariff implementation, improved financial conditions, fiscal stimulus in select key economies, and the structural resilience of domestic demand across major markets.

Headline global inflation continued its disinflationary trajectory, easing to approximately 4.1% in 2025 from 5.8% in 2024, supported by softer commodity prices, disciplined monetary policy, and improved supply chain conditions. Advanced economy inflation converged towards central bank targets at approximately 2.5% in 2025. For the preventative healthcare, functional food, and wellness sectors, this reduction in inflationary pressure preserved household discretionary income, driving a strong baseline consumer spend on natural health maintenance.

World trade demonstrated stronger-than-anticipated performance through FY 2025-26. According to the WTOs Q3 2025 Trade Monitor, actual merchandise trade volume grew approximately 4.5% year-on-year in the first nine months of 2025, significantly outperforming the April 2025 baseline forecast of -0.2%. The total value of world merchandise exports reached US$ 24.43 trillion in 2024, while commercial services exports climbed to US$ 8.69 trillion (+9% YoY).

The escalating tariff environment introduced by the US Administration-including a 10% global baseline tariff in April 2025, sector-specific trade actions, and an evolving tariff regime targeting high-end branded health imports-created temporary cross-border uncertainty and supply-side front-loading effects. However, global trade channels proved resilient through calendar 2025, with WTO data recording a record high in the dollar value of world trade volume in Q3 2025 even as physical cargo volumes stabilized.

Regional performance remained characteristically divergent. Emerging and Developing Asia outperformed strongly at 5.4% growth in 2025, led by India at an exceptional 7.3%. The United States expanded at 2.1%, constrained by trade policy uncertainty and the lagged effects of prior monetary tightening, while the Euro Areas recovery remained subdued at 1.4%. Sub-Saharan Africa demonstrated resilience at 4.4%, and the Middle East and Central Asia accelerated to 3.7%, supported by structural energy revenues and strategic commercial investments.

Source: https://www.imf.org/en/publications/weo/issues/2026/0l/l9/world-economic-outlook-update- january-2026 I https://www.imf.org/en/publications/weo/issues/2025/04/22/world-economic-outlook-april- 2025 I https://www.imf.org/en/publications/weo/issues/2025/l0/l4/world-economic-outlook-october-2025

Source: https://www.wto.org/english/news e/news26 e/stat 28jan26 271 e.htm I https://www.wto.org/english/news e/news25 e/tfore 08aug25 e.htm I https://www.wto.org/english/res e/publications e/trade outlook25 e.htm

OUTLOOK

The global economy is projected to sustain growth at 3.3% in 2026, matching 2025 estimates and reflecting structural economic resilience even as trade policy changes, geopolitical conflicts, and potential tariff escalations remain downside risks. Global headline inflation is expected to ease further to 3.8% in 2026, approaching targets across advanced markets.

World trade expansion is projected to moderate toward 0.5%-1.8% in 2026 as initial front-loading effects dissipate. This structural normalization reinforces the strategic importance of agile supply chain diversification, deep domestic market roots, and strict batch traceability for premium wellness and nutraceutical exporters. Ongoing central bank rate-easing cycles are expected to support global consumer discretionary spending throughout 2026, providing a stable tailwind to global wellness, Ayurvedic, and natural health-supplement demand.

Source: https://www.imf.org/en/publications/weo/issues/2026/0l/l9/world-economic-outlook-update- january-2026 I https://www.wto.org/english/news e/news26 e/stat 28jan26 271 e.htm

GLOBAL ECONOMIC GROWTH PROJECTIONS - 2024 TO 2026 (Real GDP Growth Rate, % Change - IMF World Economic Outlook Update, January2026)

Source:

https://www.imf.org/en/publications/weo/issues/2026/0l/l9/world-economic-outl... https://www.wto.org/english/news e/news26 e/stat 28jan26 271 e.htm

INDIAN ECONOMY

India continued to consolidate its position as the worlds fastest-growing major economy during FY 2025-26. The Second Advance Estimate released by the Ministry of Statistics and Programme Implementation (MoSPI) in February 2026 estimated Indias real GDP growth at 7.6% under the revised base year (2022-23), with quarterly growth rates showing broad-based economic momentum at 7.8% in Q1, 8.4% in Q2, and 7.8% in Q3 FY 2025-26. Under the earlier base year (2011-12), the First Advance Estimate placed growth at 7.4%, with real GDP at Rs. 201.90 lacs crore.

The Reserve Bank of India (RBI) progressively upgraded its annual growth projection during the year to 7.3%, acknowledging the domestic markets internal structural resilience. Similarly, the IMF, in its January 2026 WEO, projected Indias fiscal-year GDP growth at 7.3% for FY25 and 6.4% for FY26 under its global comparison methodology, validating India as the absolute growth leader among G20 nations.

A landmark macroeconomic milestone of FY 2025-26 was the dramatic moderation of domestic inflation to historically stable levels. The Consumer Price Index (CPI) inflation for the full year is estimated by the RBI at approximately 2.1%—well below the central banks 4.0% midpoint target, representing the lowest annual average in several years. Monthly CPI inflation declined sharply through the year, hitting a record low of 0.25% in October 2025 under the historical 2012=100 base series before adjusting to 3.21% in February 2026 under the freshly implemented 2024=100 base year. This benign inflationary environment allowed the Monetary Policy Committee (MPC) to systematically reduce the repo rate in calibrated steps, easing domestic credit access, boosting capital investment, and strengthening consumer confidence in lifestyle and wellness spending.

On the fiscal front, the Government maintained strict economic discipline, keeping the fiscal deficit exactly on track with its original Budget Estimate at 4.4% of GDP (Rs. 15.69 lacs crore), as confirmed by the Revised Estimate in the Union Budget 2026-27 presented on 1st February, 2026. Indias external sector remained robust: total commercial exports (merchandise and services combined) reached USD 790.86 billion during the April- February FY 2025-26 window, expanding 5.79% year-on-year and tracking closely toward the Commerce Ministrys full-year baseline target of USD 850 billion. Gross FDI inflows maintained strong momentum at USD 73.31 billion for the April-December 2025 window (+16% YoY), while Indias forex reserves peaked at an all-time historical high of USD 728.5 billion in late February 2026.

Source: https://ddnews.gov.in/en/rbi-projects-inflation-at-2-1-in-fy26-revises-fy27-growth-outlook-upward/ https://www.pib.gov.in/PressReleasePage.aspx?PRID=2178447&reg=3&lang=2 https://www.pib.gov.in/PressReleasePage.aspx?PRID=2238889&reg=3&lang=2

https://www.mospi.gov.in/uploads/latestReleases/latest release 1770891893893 6b458c0a-c327-4fef-a554- 41131ea67273 Press Relase of CPI for Jan26.pdf

Source: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2098352&reg=3&lang=2

https://www.pib.gov.in/PressReleasePage.aspx?PRID=2221458&reg=3&lang=2 https://ddnews.gov.in/en/indias-exports- grow-5-79-to-790-86-billion-between-april-2025-february-2026/

https://www.pib.gov.in/PressReleasePage.aspx?PRID=2244385&reg=3&lang=2 https://www.ibef.org/economy/foreign- direct-investment https://www.business-standard.com/markets/capital-market-news/india-s-forex-reserves-fall- around-30-billion-in-march-126040600313 1.html

OUTLOOK

India is strongly positioned for sustained economic expansion, supported by strong macro-stability, low core inflation, resilient consumer demand, and an accelerating private capex cycle. While the IMF projects Indias mid-term growth at 6.4%, domestic projections from the RBI and the Ministry of Finance point to sustained 7%+ momentum. Key enablers include deep public infrastructure rollouts, extensive digital economy penetration, expanding organized health coverage, and Indias preferred position under global "China+1" supply chain diversification strategies.

For a specialized Ayurvedic and nutraceuticals manufacturing entity like Accretion Nutraveda Limited, the expansion of organized health awareness, structural formalization of Ayurvedic and nutraceutical supply chains, and rising urban-rural consumer spending on preventative health present an ideal operational landscape. Main external risks include global commodity cost volatility, protectionist tariff shifts, and ongoing shipping lane disruptions.

Source: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2220800&.reg=48&lang=2

https://www.imf.org/en/publications/weo/issues/2026/01/19/world-economic-outlook-update-january-2026 https://www.pib.gov.in/PressReleasePage.aspx?PRID=2219912&.reg=48&lang=2

INDIA GDP GROWTH RATE - FY 2022-23 TO FY 2025-26E (Real GDP Growth Rate, % YoY - MoSPI Advance Estimates)

FY 2022-23 7.0% Post-pandemic rebound; manufacturing recovery

FY 2023-24 8.2% Robust private consumption; strong capex

FY 2024-25 6.5% Moderated; global headwinds; election year

FY 2025-26 (sae) 7.6% Fastest-growing major economy; investment-led

Source: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2233792 https://www.pib.gov.in/PressReleasePage.aspx?PRID=2212087

YEAR-ON-YEAR CPI INFLATION RATE - FY 2025-26 (Monthly CPI Inflation %, Year-on-Year - Consumer Price Index, India)

Month	CPI Inflation (% YoY)	Base Year Series
April 2025	4.26%	2012=100
June 2025	2.10%	2012=100
August 2025	3.65%	2012=100
October 2025	0.25% (Record Low)	2012=100
December 2025	1.33%	2012=100
January 2026	2.75%	2024=100 (New Base)
February 2026	3.21%	2024=100
FY 2025-26 Full-Year Avg. (RBI Est.)	2.1%	RBI MPC Projection

Source https://www.pib.gov.in/PressReleasePage.aspx?PRID=2178447 I https://www.pib.gov.in/PressReleasePage.aspx?PRID=22029401

https://www.pib.gov.in/PressReleasePage.aspx?PRID=2238889 https://ddnews.gov.in/en/rbi-projects- inflation-at-2-1-in-fy26-revises-fy27-g...

GLOBAL AYURVEDIC & NUTRACEUTICAL INDUSTRY OVERVIEW

The global wellness and preventative health industry has emerged as a structurally resilient sector, driven by long-term non-discretionary shifts: a rapidly aging global demographic, a rising incidence of lifestyle-related and metabolic conditions, expanding consumer access to self-care products, and a major shift from reactive treatment to proactive prevention.

According to global macro sizing from the Global Wellness Institute, the global wellness economy reached a peak valuation of USD 6.3 trillion in 2024-25 and is projected to expand to USD 9.0 trillion by 2028. Simultaneously, specialized industry reports indicate the core global nutraceuticals market expanded from a 2023 baseline of USD 425.0 billion to USD 451.8 billion in 2024 and is on a clear path to reach USD 746.6 billion by 2034, expanding at a compound annual growth rate (CAGR) of 5.0% (Alternative reputable estimates place the market at USD 500.62 billion in 2025, growing to USD 1,124.56 billion by 2034 at a CAGR of 10.58%). Concurrently, the niche but rapidly expanding global Ayurveda market was valued at USD 20.4 billion in 2025 and is projected to scale to USD 85.8 billion by 2033 at an accelerated CAGR of 19.7%. Across research methodologies, consensus supports a highly lucrative, multi-billion-dollar preventative wellness domain expanding at a robust double-digit CAGR for its natural-product sub-segments through the next decade.

AYURVEDIC AND NUTRACEUTIOAL PRODUCT CLASSIFICATION

The global preventative healthcare ecosystem comprises several distinct and interrelated product segments, each with unique manufacturing, regulatory, and market dynamics:

• Active Botanical and Herbal Extracts: The raw active ingredients and standardized botanical powders derived from nature. India stands as the worlds second-largest exporter of medicinal plants and botanical raw materials, trailing only China. Together with its unprecedented rich repository of over 7,500 documented medicinal plant species, traditional Ayurvedic knowledge provides local manufacturers with a distinct technological and processing edge in global supply chains.

• Finished Formulations (Nutra & Ayurveda): Finished dosage forms combining active nutraceutical ingredients or herbal compounds with advanced excipients. This includes tablets, capsules, functional liquids, powders, and modern gel delivery systems, representing the primary operational manufacturing scope of Accretion Nutraveda Limited.

• Nutraceutical Contract Development & Manufacturing Organizations (CDMOs): Specialized service providers offering outsourced formulation development, scalable pilot processing, and international regulatory filing support. This is the highest-growth structural segment within the wellness industry.

• Functional Foods & Beverages: Everyday dietary products enriched with health-boosting nutrients, proteins, vitamins, and traditional herbal ingredients, representing a major high-margin category.

• Traditional Ayurvedic and Herbal Products: Standardized classical and proprietary formulations seeing a global revival under modern scientific validation, rigorous metal testing, and clean-label parameters.

GLOBAL MARKET DYNAMiCS & CONSUMER SHiFTS

In the current fiscal year, consumer demand for lifestyle supplements, plant-based proteins, gut health formulations, and immunity enhancers continued its steady upward trajectory. Conventional small dosage forms (tablets and hard capsules) held the largest market volume share at approximately 54.24%, while modern high-absorption liquid formulations and chewable gummies expanded their market share at a rapid CAGR of 7.17%.

The generic wellness and private-label brand market grew at a solid CAGR of 7.2%, as major international retail chains and e-commerce platforms prioritized premium contract-manufactured lines to capture consumer wallet share. Clean-label, vegan, and heavy-metal-free certified supplements captured a substantial premium, making up over 17.63% of new product launches globally. Furthermore, specialized metabolic wellness formulations and natural weight management supplements emerged as the fastest-growing sub-segments, expanding at an estimated CAGR of 12.73%.

challenges and trade headimnds

Despite strong structural tailwinds, the global wellness export landscape faced transient supply chain headwinds from shifting customs policies and the US Administrations April 2025 baseline tariffs, which triggered near-term front-loading across retail channels. Crucially, while branded synthetic pharmaceuticals faced intense trade pressures, generic health commodities and specialized herbal ingredients remained largely insulated—a strategic distinction that directly benefits cost-efficient Indian contract manufacturers. Driven by these dynamics and ongoing shipping lane conflicts, global brands are actively diversifying away from single-source supply chains to secure robust, fully auditable manufacturing partners in reliable hubs like India.

GLOBAL NUTRACEUTICAL MARKET SIZE (Market Value in US$ Billion - 2024, 2025 and 2034 Projection)

Year	Market Size (US$ Billion)	CAGR / Remarks
2023	USD 425.0 Bn	Base period
2024	USD 451.8 Bn	6.3% growth YoY (True reported baseline)
2025 (Estimated)	USD 480.4 Bn	6.3% growth YoY
2034 (Projected)	USD 746.6 Bn	CAGR of 5.0% (2025-2034) (Global Market Insights)

Source: https://www.gminsights.com/industry-analysis/nutraceuticals-market I https://www.fortunebusinessinsights.com/nutraceuticals-market

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https://www.grandviewresearch.com/industry-analysis/ayurveda-market-report

GLOBAL & INDIAN CDMO OPPORTUNITIES

The Contract Development and Manufacturing Organization (CDMO) model has established itself as an indispensable pillar of the global wellness, nutraceutical, and natural health supply chain. By enabling global brand owners—from large multinational FMCG conglomerates to fast-growing Direct-to-Consumer (D2C) wellness brands—to access world-class formulation expertise, modern automated processing lines, and complex regulatory certifications without investing heavy capital into setting up internal factories, CDMOs have become essential engines of value creation.

According to industry data from Grand View Research, the global consumer health and nutritional supplement contract manufacturing market was valued at USD 138.2 billion in 2025 and is estimated to reach USD 150.5 billion in 2026. Propelled by shifting consumer trends toward preventive healthcare and clean-label supplements, the market is projected to grow at a robust CAGR of 9.20%, reaching USD 278.8 billion by 2033. This rapid neardouble-digit outsourcing growth trajectory underscores a structural shift toward specialized third-party manufacturing partnerships as brands prioritize agility and regulatory compliance over capital-heavy operations.

KEY GROWTH DRIVERS

Outsourcing by Emerging D2C & Mid-Sized Brands: A structural surge in specialized health lines by brands lacking internal factories. These players partner with reliable CDMOs to eliminate high fixed asset costs, accelerate time-to-market, and leverage specialized clean-label formulation capabilities.

Global "China+1" Sourcing Diversification: Ongoing international trade tensions and supply chain risks have prompted global buyers to actively shift volume away from East Asia. Indian contract manufacturers have recorded over a 50% year-on-year surge in international Requests for Proposals (RFPs) as global brands secure secondary manufacturing hubs.

The US BIOSECURE Act & Regulatory Alignments: Strategic changes in Western procurement laws have restricted cross-border links with specific state-backed entities abroad. This change has accelerated the relocation of contract manufacturing mandates to fully compliant, transparent Indian facilities.

Advanced Ingredient Delivery Innovation: Rising consumer demand for premium formats (such as sustained-release tablets, effervescent powders, and liquid-filled capsules) requires significant technical processing expertise, driving volume toward advanced automated facilities.

REGIONAL DYNAMICS

North America held the largest share of the consumer health contract manufacturing market at 38.50% (USD 98.1 billion), driven by a massive per-capita intake of dietary supplements and premium functional lifestyle brands. Europe contributed 25.30% (USD 64.24 billion), characterized by strict regulatory compliance needs and high demand for organic-certified formulations. The Asia-Pacific region, representing 25.20% (USD 64.15 billion), stands as the fastest-growing market globally. India and China serve as the main hubs due to clear structural cost advantages, a highly skilled technical workforce, and extensive raw ingredient ecosystems. Indias contract manufacturing sector is seeing standout growth, supported by a vast network of facilities with international quality certifications.

GLOBAL CONSUMER HEALTH & SUPPLEMENT CDMO MARKET SIZE (Market Value in US$ Billion - 2025 to 2033 Projection)

Year	Market Size (US$ Billion)	CAGR / Remarks
2025	USD 138.2 Bn	Base period
2026 (Estimated)	USD 150.5 Bn	8.9% growth YoY (Grand View Research)
2033 (Projected)	USD 278.8 Bn	CAGR of 9.20% (2026-2033)

Source: https://www.grandviewresearch.com/industry-analysis/consumer-health-contract-manufacturing- market-report

INDIAN NUTRACEUTICAL & AYUSH SECTOR INSIGHTS

The Indian nutraceutical, Ayurvedic, and natural wellness industry occupies an increasingly prominent position in both the domestic economy and the global preventative health landscape. India ranks among the primary global supply hubs for natural ingredients, contributing significantly to the global trade of medicinal plants and herbal commodities. Supported by a robust network of manufacturing facilities—including thousands of licensed AYUSH units nationwide—Indias wellness processing infrastructure has advanced significantly. The domestic industry has achieved a strong five-year average compound growth rate of over 10%, driven by an extensive, highly diverse ecosystem of indigenous raw botanical ingredients and strong local consumption.

On the international front, Indias natural wellness sector continues to grow as a key pillar of the nations export strategy. Backed by the establishment of the Ayush Export Promotion Council (AYUSHEXCIL), total exports of AYUSH and herbal products registered a growth of 6.11%, increasing from USD 649.20 million in FY24 to USD 688.89 million in FY25, tracing a consistent upward trajectory as global demand for plant-derived supplements scales. The United States remains the single largest destination for Indian health supplements and botanical exports, accounting for the largest share of outbound shipments, while key markets across Europe, Africa, and Emerging Asia represent high-growth territories. On the domestic front, the structural formalization of retail health channels has expanded significantly, driven by rising health awareness and an expanding network of generic and affordable health outlets making high-quality wellness and nutritional supplements accessible to millions of consumers across India.

KEY GOVERNMENT SCHEMES AND PQLIOY SUPPORT

Initiative	Core Strategic Focus	Financial Outlay / Key Updates (FY 2025-26)
Strengthening of Pharmaceutical Industry (SPl) Scheme	Upgrading infrastructure and production technology for MSME manufacturing clusters	Rs.500 Crores outlay; multiple common facility projects operational; maximum incentive cap raised to rs.2 Crores per beneficiary to drive automated upgrades.
PLI Scheme for Formulations & Functional Foods	Enhancing large-scale domestic manufacturing capacity, value addition, and high-margin exports.	Rs.15,000 Crores total outlay; cumulative investments grounded successfully; substantial direct employment created; multiple advanced greenfield lines operational.
AYUSH Sector Development Programmes	Streamlining quality standards, clinical validation, and international marketing of traditional remedies.	Increased budget allocation; funding set up for advanced wellness testing labs; risk-based inspection rollouts across all manufacturing sites.
100% FDI Liberalization	Attracting long-term foreign direct investment into local wellness and food manufacturing.	100% FDI allowed via automatic route for greenfield setups; up to 74% for brownfield modernization, driving a +16% YoY increase in
Ministry of Chemicals & DoP Budgetary Allocation	Direct funding to strengthen local manufacturing infrastructure & research excellence hubs.	Rs.5,268.72 Crores allocated (+28.8% over previous baseline), providing dedicated support for advanced ingredient and medical device manufacturing parks.

KEY INDUSTRY TRENDS SHAPING AOCRETiON NUTRAVEDA LiMiTED

• Export Scaling and Scientific Herbal Validation: Indian wellness and nutraceutical exports maintained a strong upward trajectory, crossing USD 28.29 billion in the April-February window. Despite initial global tariff uncertainties, Indian contract manufacturers retained a dominant position in the Western private-label and supplement market. The clear exclusion of generic natural commodities from restrictive Western trade decrees highlights Indias vital position in global wellness supply chains and confirms the long-term viability of its export-focused model.

• Technological Modernization via AI and Automated Analytics: India is seeing a major upgrade in natural formulation research and manufacturing technology. Advanced processing hubs are deploying Artificial Intelligence (ai) and Machine Learning (ml) to optimize extraction yields, refine particle sizes, and ensure realtime batch quality tracking. Significant technological investments by global innovators in major Indian hubs emphasize the countrys transition toward advanced, data-driven wellness manufacturing.

• The Convergence of Traditional Ayurveda and Modern Nutraceuticals: Post-pandemic consumer habits have driven a long-term surge in preventative care and natural self-care products. Consumers are increasingly seeking scientifically backed "Ayur-ceutical" formats that combine traditional botanical wisdom with modern, verified delivery systems (such as effervescent tablets and liquid-filled capsules). This trend expands the addressable market for versatile contract manufacturers capable of delivering premium consumer health lines.

• Stricter Standards for Production Quality and Traceability: International regulatory bodies are continuously raising quality benchmarks for health supplements, requiring detailed digital processing logs, strict data integrity protocols, and reliable heavy-metal testing. As a result, facilities holding recognized WHO-cGMP, ISO, and clean-label certifications command a premium in the competitive contract manufacturing outsourcing market, directly benefiting compliant players.

COMPANY OVERVIEW

Accretion Nutraveda Limited is an integrated Ayurvedic and Nutraceutical Contract Development and Manufacturing Organization (CDMO) engaged in the development, manufacturing and supply of nutraceutical, herbal, dietary supplement and wellness products. The Company provides end-to-end solutions including product development, formulation support, manufacturing, packaging and private-label services to customers across domestic and international markets.

Operating from its manufacturing facility in Ahmedabad, Gujarat, India, the Company is committed to delivering high-quality, innovative and compliant Ayuvedic and Nutraceutical solutions. Growing consumer preference for preventive healthcare, nutritional supplementation and natural wellness products continues to create significant opportunities for the Companys business.

A significant milestone during the year was the successful listing of the Companys Equity Shares on the BSE SME Platform, marking an important step in its growth journey. The public issue strengthened the Companys capital base, enhanced its corporate visibility and reinforced its commitment to transparency, governance and sustainable value creation for all stakeholders. The listing is expected to support the Companys future growth initiatives, operational expansion and market development efforts.

During FY 2025-26, the Company remained focused on strengthening its manufacturing capabilities, enhancing operational efficiencies and expanding its customer base. With increasing global acceptance of Ayurveda and nutraceutical products, Accretion Nutraveda Limited is well positioned to capitalize on the growing opportunities in the wellness and preventive healthcare sector.

Strategic Position of Accretion Nutraveda Limited in the Global & Indian Nutraceutical Landscape

• Advanced Formulation Manufacturing Infrastructure: Operating a state-of-the-art facility near the Ahmedabad industrial belt, equipped with advanced automation for various dosage formats, including tablets, capsules, Oral Liquids, External Preparations (Balms and Others), Oral Powders / Churans (Oral Ayurvedic Powders)/ Avleh and Oils.

• Comprehensive Certified Quality Systems: The Companys manufacturing facility operates in accordance with stringent quality, safety and regulatory standards and is certified WHO-GMP, Ayush GMP certificate, FSSAI License, FSSC 22000, HALAL Certificate, ISO 9001:2015 and ISO 45001:2018. These certifications reflect the Companys commitment to quality excellence, food safety, operational efficiency and regulatory compliance, enabling it to serve both domestic and international customers across the nutraceutical, Ayurvedic and wellness segments.

• Strong Export and Distribution Reach: The Company has built a reliable commercial network, supplying specialized Ayurvedic and Nutraceutical formulations across multiple global export markets through a combination of direct export accounts and strategic merchant export partnerships.

• End-to-End CDMO Competencies: The Company provides integrated contract development and manufacturing solutions, including formulation development, pilot batch testing, stability studies, ingredient sourcing, manufacturing, packaging and regulatory support. These capabilities enable customers to efficiently develop and commercialize innovative healthcare products.

FINANCIAL PERFORMANCE

For FY 2025-26, the company reported revenues of approximately Rs. 3360.31 Lacs (Rs. 33.60 crore) and Net Profit After Tax of approximately Rs. 506.83 Lacs (Rs. 5.06 crore) as compared to FY 2024-2025 revenues of Rs. 1600.18 Lacs (Rs. 16.00 crore), with a net profit of approximately Rs. 250.09 Lacs (Rs. 2.50 crore) — representing strong year-on-year growth momentum. The Company continues to focus on strengthening its market presence, expanding customer relationships, enhancing manufacturing capabilities and developing innovative healthcare solutions. Supported by favorable industry dynamics and increasing demand for preventive healthcare products, the Company remains optimistic about its long-term growth prospects.

REVENUE FROM OPERATIONS (Rs. IN LACS) (FY 2023-24 to FY2025-26E - Accretion Nutraveda Limited)

Financial Year	Revenue from Operations (Rs. Lacs)	YoY Growth
FY 2023-24	500.52	Base Year
FY 2024-25	1600.18	+ 219.70%
FY 2025-26	3360.31	+ 109.99%

EBITDA AND EBITDA MARGIN (FY2023-24 to FY2025-26 - Rs. Lacs and Percentage)

Financial Year	EBITDA (Rs. Lacs)	EBITDA Margin (%)
FY 2023-24	120.60	24.10%
FY 2024-25	364.66	22.79%
FY 2025-26	700.59	20.85%

PROFIT AFTER TAX (pat) AND NET PROFIT MARGIN (FY2023-24 to FY2025-26 - E Lacs and Percentage)

Financial Year	EBITDA (Rs. Lacs)	Net Profit Margin (%)
FY 2023-24	72.33	14.45%
FY 2024-25	250.09	15.63%
FY 2025-26	506.83	15.08%

FINANCIAL RATIOS

The following table presents the key financial ratios of Accretion Nutraveda Limited

Particulars	FY 2025-26	FY 2024-25	% Change
Debtors Turnover Ratio	4.14	4.9	(15.44%)
Inventory Turnover Ratio	3.74	3.49	7.17%
Interest Coverage Ratio	14.71	12.33	(19.36%)
Current Ratio*	11.98	2.87	316.84%
Debt-Equity Ratio*	0.12	0.76	(84%)
Operating Profit Margin (%)	0.198	0.214	7.80%
Net Profit Ratio (%)	15.08%	15.63%	(3.49%)
Return on Net Worth (%)*	14.29%	49.50%	(71.14%)

* Current Ratio: The Current Ratio increased by 316.84% during the year primarily due to a significant increase in current assets (as unutilized IPO money are kept in short term FD Rs. 655.48 lacs) and improvement in the Companys liquidity position as compared to the previous year.

* Debt-Equity Ratio: The Debt-Equity Ratio decreased by 84.39% during the year primarily due to reduction in borrowings and increase in shareholders equity due to IPO.

* Return on Net Worth: The Return on Equity decreased by 71.14% during the year primarily due to a significant increase in shareholders equity as compared to the growth in profit after tax.

INTERNAL CONTROL AND ITS ADEQUACY

The Company has established a comprehensive internal control framework that commensurate with its rapidly growing scale of operations (scaling from Rs. 1,600.18 Lacs in FY 24-25 to Rs. 3,360.31 Lacs in FY 25-26). This system is designed to ensure the reliability of financial reporting, strict compliance with statutory laws, and the safeguarding of corporate assets.

* Financial & Operational Controls: The Company has established adequate internal control systems to ensure efficient utilization of resources, safeguarding of assets, accuracy of financial reporting and compliance with applicable laws and regulations. The significant improvement in the Current Ratio to 5.73 during FY 2025-26 reflects the Companys strengthened liquidity position following the successful IPO and enhanced working capital management.

* Audit Oversight & Financial Discipline: Regular internal audits are conducted by independent professionals to evaluate the effectiveness of internal controls. The Audit Committee periodically reviews audit observations, internal financial controls and compliance status. Despite achieving strong revenue growth of 109.99% during FY 2025-26, the Company maintained robust control mechanisms to ensure proper authorization, recording and monitoring of all business transactions.

• Quality Assurance & Regulatory Compliance: As a manufacturer of Ayurvedic, nutraceutical and wellness products, the Company maintains stringent quality control procedures covering raw material verification, process controls, product testing and regulatory compliance. The internal control framework ensures adherence to applicable quality standards, product specifications and customer requirements across various dosage forms and product categories.

• Technology, Inventory & Process Controls: The Company continues to strengthen operational controls through investments in manufacturing infrastructure, automation and inventory management systems. These measures support operational efficiency, inventory monitoring and scalability while maintaining product quality and process consistency.

RISK MANAGEMENT

Operating in the rapidly evolving healthcare industry, Accretion Nutraveda Limited recognizes that effective risk identification, assessment and mitigation are critical to achieving sustainable growth and protecting stakeholder value. The Companys risk management framework is integrated into strategic and operational decision-making and is overseen by the Board of Directors and its Committees. Key risks and mitigation strategies are outlined below:

1. Regulatory and Compliance Risk

Risk Exposure: The ayurvedic, nutraceutical and wellness industry is subject to evolving regulatory requirements relating to product formulation, labelling, food safety, quality standards and manufacturing practices. Any adverse regulatory changes, product non-compliance, product recalls or failure to meet applicable standards may impact the Companys operations, reputation and growth prospects.

Mitigation Strategy: The Company maintains strict compliance with applicable regulatory requirements, including FSSAI regulations and quality management standards. Regular quality audits, product testing, process validations and monitoring of regulatory developments help ensure compliance and product integrity.

2. Raw Material Sourcing and Supply Chain Risk

Risk Exposure: The Company operates in a highly competitive market characterized by changing consumer preferences, increasing competition from domestic and international players, and evolving health and wellness trends. Any slowdown in demand or pricing pressure may impact revenue growth and profitability. Mitigation Strategy: The Company focuses on continuous product innovation, customer diversification, expansion into new markets, and strengthening relationships with existing customers. Its diversified healthcare products and contract manufacturing capabilities help reduce dependence on any single product category or customer segment.

3. Operational Risk

Risk Exposure: The Companys operations depend upon the uninterrupted availability of quality raw materials, packaging materials and efficient manufacturing processes. Supply chain disruptions, equipment failures, quality issues or production interruptions could adversely affect operations and customer commitments.

Mitigation: The Company maintains relationships with multiple suppliers, follows structured procurement and inventory management practices, and continues to invest in manufacturing infrastructure, automation and process improvements. Preventive maintenance programs and stringent quality control procedures further reduce operational risks.

4. Financial Risk

Risk Exposure: The Company faces risks related to working capital requirements, receivable management, customer credit exposure and fluctuations in finance costs. Rapid business growth may increase pressure on liquidity and working capital management.

Mitigation: The successful IPO during FY 2025-26 significantly strengthened the Companys financial position and liquidity profile. The Company closely monitors receivables, maintains prudent credit controls and regularly reviews cash flow requirements. Improved financial strength is reflected in the reduction of the Debt-Equity Ratio from 0.76 to 0.12 and improvement in the Interest Coverage Ratio from 9.89 to 12.63 during the year.

5. Reputational Risk

Risk Exposure: Product quality, safety and customer trust are fundamental to the Companys success. Any quality-related issues, adverse customer experiences or regulatory non-compliance may adversely affect the Companys reputation and customer relationships.

Mitigation: The Company follows stringent quality assurance procedures covering raw material sourcing, manufacturing processes, product testing and final product release. Continuous investments in quality systems, employee training and process controls help maintain high standards of product quality and customer satisfaction.

SWOT ANALYSIS

The following provides a structured assessment of Accretion Nutraveda Limiteds internal strengths and weaknesses, along with the external opportunities and threats shaping its operating environment as of FY 2025-26.

STRENGTHS

• Extensive expertise in nutraceutical, Ayurvedic and wellness product manufacturing.

• Proven track record of consistent quality and timely delivery across domestic and international markets.

• Established long-term relationships with contract manufacturing clients, private label brands and distribution partners.

• Highly experienced management team and skilled workforce with deep Ayurvedic and Nutraceutical industry knowledge.

• FSSAI, ISO 9001:2015 and GMP-compliant manufacturing facility ensuring high standards of quality and operational excellence.

• IPO-funded capacity expansion and working capital reinforcement enhancing scalability and market reach.

OPPORTUNITIES

• Global healthcare and wellness brands increasingly choosing India as a preferred manufacturing destination under the China+1 sourcing strategy.

• Rapid expansion in demand for ayurvedic, nutraceuticals and wellness products across domestic and international markets.

• Government initiatives promoting Ayurveda, traditional wellness systems and the nutraceutical manufacturing ecosystem in India.

• Rising demand for preventive healthcare, herbal products and nutraceutical products in domestic and export markets.

WEAKNESSES

• Dependence on availability and pricing of key raw materials and botanical extracts affecting procurement costs and supply reliability.

• Revenue concentration risk — significant share of income from a limited number of clients.

• Exposure to foreign currency fluctuations impacting export realisations and margins.

THREATS

• Evolving regulatory policies and rising quality standards could increase compliance costs and disrupt business continuity.

• Geopolitical uncertainties, freight cost volatility and supply chain disruptions may impact raw material availability and export operations.

• Competitive pressure from established healthcare manufacturers, wellness brands and contract manufacturing supplier may compress margins and market share.

• Currency fluctuations, inflationary pressures and changing consumer spending patterns may impact profitability.