ADF Foods Ltd Management Discussions

Global Economy

The global economy in FY 2025 26 navigated one of its most complex operating environments in recent years post covid. A convergence of escalating trade tensions, geopolitical fragmentation, and renewed policy uncertainty weighed on growth expectations across major economies. According to the International Monetary Fund (IMF), global GDP growth is projected to slow to 3.1% in 2026, broadly in line with the prior year but masking significant dispersion across regions and sectors.¹

The single most consequential development of the year was the re-escalation of US trade policy. The announcement of broad-based tariff increases on goods from multiple trading partners, including India, introduced fresh uncertainty across global supply chains. While a 90-day pause on reciprocal tariffs was subsequently announced for most countries, the structural ambiguity around trade policy has prompted multinational companies and exporters to reassess sourcing, routing, and pricing strategies.

Advanced economies as a group recorded modest growth of approximately 1.8%. The United States maintained relative resilience, with

GDP growth estimated at around 2.3% for 2026, though consumer confidence moderated in the face of tariff-driven cost pressures. The Eurozone continued to face subdued demand, with Germany remaining in contraction driven by persistent energy cost challenges and declining industrial output. The United Kingdom recorded marginal growth at 0.8%, constrained by ongoing inflationary pressures and weak business investment.² Emerging and developing economies, particularly in Asia, continued to account for the majority of global growth. However, Chinas below-expectation recovery trajectory persisted, dampening regional trade flows and commodity demand. India, in contrast, remained a standout performer, sustaining strong growth momentum backed by domestic consumption and infrastructure investment.

Global inflation continued its gradual deceleration, with headline inflation easing across most major economies. Central banks in developed markets held rates at elevated levels through much of the year before cautiously initiating rate reduction cycles, supporting a gradual easing of financial conditions. Despite this, freight costs remained elevated relative to pre-pandemic norms, particularly on key shipping lines affected by continued Red Sea and Gulf of Aden disruptions.³

Performance of Major Economies in 2025

United States: GDP growth estimated at approximately 2.30%, supported by resilient domestic consumption, though tariff-driven cost pressures and policy uncertainty moderated the outlook.

China: Growth moderated to approximately 4.4%, constrained by structural challenges in the property sector and subdued external demand. United Kingdom: Growth of approximately 0.8%, reflecting improving but still fragile consumer confidence and continued fiscal consolidation.

Germany: Growth of approximately 0.8%, weighed down by high energy costs, weak industrial output, and structural competitiveness challenges. Eurozone (aggregate): Modest growth of approximately 1.1%, with recovery uneven across member states.

Outlook

Global growth is projected at 3.1% for 2026, contingent on a stabilisation of trade tensions and a gradual recovery in global trade volumes. The IMF and World Bank have flagged significant downside risks, including the potential for further tariff escalation, persistent geopolitical conflicts, and financial market volatility. The divergence between resilient emerging markets and structurally challenged advanced economies is expected to continue, reshaping global trade patterns and supply chain configurations over the medium term.

ADF Foods Perspective on the Global Economy

FY 2025 26 presented ADF Foods with a particularly complex external environment. The imposition of US tariffs on Indian goods, announced in April 2025 created direct cost pressure in the Companys major export market. ADF Foods responded with discipline and agility: by sharing the incremental cost impact across the value chain, adjusting delivery terms across FOB and CIF arrangements, and accelerating new listing activity across other geographies to deepen its market penetration even through the disruption.

Simultaneously, strength in non-US markets, including the UK, Australia, and select Asia-Pacific markets, provided meaningful offset during quarters where the US environment was more challenging.

The Gulf market situation also introduced volatility in one of ADF Foods important geographic segments. The Company managed this exposure through its established distributor network and the continued strength of the Camel and Aeroplane brands long-standing consumer franchise in the region. Despite these operating challenges, ADF Foods delivered its highest ever revenue in FY26, demonstrating that the underlying demand for its brands remained robust and that market penetration initiatives were gaining traction. Consolidated revenue for the financial year ended March 2026 grew 15.9% year-on-year to Rs. 683.2 crores, with EBITDA expanding 32.8% over the same period, reflecting strong operating leverage and disciplined cost management.

The Indian Economy

India retained its position as the worlds fastest-growing major economy in FY 2025 26, with the IMF projecting real GDP growth of 6.5%.1° This performance, sustained against a backdrop of global uncertainty, reflects the structural strengths of Indias economy: a large and growing domestic consumption base, continued momentum in infrastructure investment, and an increasingly diversified industrial and services sector.

FY 2025 26 was shaped by the Union Budgets continued emphasis on capital expenditure, with allocations maintaining their record-setting trajectory from the prior year. Government spending on infrastructure, connectivity, and logistics provided consistent demand support across construction, manufacturing, and ancillary sectors. Consumer spending, while showing some moderation in urban markets, remained broadly resilient, underpinned by rising incomes, sustained credit availability, and a young, aspiring population. Inflation moderated through the year, with the RBIs monetary policy framework providing stability. The central banks measured approach to rate normalisation supported credit growth without reigniting inflationary pressures, maintaining a broadly favourable environment for business investment and consumer spending alike.¹¹

Indias Food Processing Sector

Indias food processing sector continued to strengthen its position through FY 2025-26, reinforcing its role as a vital pillar of the wider economy and a growing contributor to the countrys export profile. The sector now accounts for around 32% of Indias total food market and contributes close to 13% of national exports and 6% of total industrial investment. In terms of value added, it contributes approximately 8.8% of manufacturing gross value added and around 8.4% of agricultural gross value added.¹²

Urbanisation, changing dietary habits, and the expanding penetration of modern retail and e-commerce continued to drive demand for packaged, convenient, and ready-to-eat foods. The Government of Indias Production Linked Incentive (PLI) scheme for food processing continued to attract capacity investment and brand-building activity, providing eligible companies with reimbursement of up to 50% of overseas branding and marketing expenses.

The development of cold chain infrastructure through the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) and the growth of agro-processing clusters further strengthened Indias ability to meet international quality and shelf-life standards, enhancing competitiveness in export markets.

Indias Consumer Market and Capital Markets

Indias consumer spending continued its long-term expansion, with projections pointing to a market size of USD 6 trillion by 2030. Rapid urbanisation, rising disposable incomes, and the proliferation of digital commerce are reshaping consumption patterns, with significant implications for branded packaged food companies well-positioned in both domestic and export markets.¹³

ADF Foods Perspective on the Indian Economy and Growth Opportunities

ADF Foods leveraged Indias favourable policy environment and evolving consumer landscape to advance its domestic growth agenda in

FY 2025 26. ADF Soul brand is available on most of the Quick commerce and E-com platforms and select Modern trade outlets targeting urban and health-conscious premium customers.

The Company also benefited from PLI scheme incentives, which supported investment in global brand-building for the Ashoka, Truly Indian and other international brands. The favourable export policy environment, combined with improving logistics infrastructure, enabled ADF Foods to maintain competitive positioning in international markets even as global trade conditions became more complex.

Industry Development

Global Ethnic Food Market

The global food industry continues to experience a sustained structural shift towards ethnic diversity, convenience, and health-focused consumption. The global ethnic foods market is projected to grow at a CAGR of 7.43%, reaching USD 153.21 billion by 2032, driven by increasing migration, cultural integration, and consumer demand for authentic culinary experiences. 14 Indian cuisine, with its rich flavour profiles, aromatic spices, and natural alignment with vegetarian, vegan, halal, and gluten-free dietary preferences, is exceptionally well-positioned within this global trend.

Global Ready-to-Eat Food Market

The global ready-to-eat (RTE) food market, valued at USD 181.5 billion in 2023, is projected to reach USD 262.4 billion by 2032, growing at a CAGR of 4.18% during 2024 2032. 15 This growth is driven by the increasing demand for convenient, time-saving meal solutions, particularly among urban consumers and working professionals. The popularity of on-the-go snacks, combo-meal kits, and healthier RTE options continues to expand, supported by busy lifestyles, evolving dietary habits, and the rapid growth of online retail platforms.

Indian Ready-to-Eat Food Market

Indias domestic RTE market is expected to expand at a CAGR of 16.4% through 2031, reaching approximately USD 2,933 million, supported by modern retail growth, digital commerce, and changing household dynamics.1 High relocation rates among the Indian diaspora in the US, UK, Canada, and UAE continue to fuel demand for familiar, regional foods in international markets, sustainable packaging, and customised meal solutions is shaping product innovation globally.

Large and Influential Indian Diaspora. With over 35 million people of Indian origin residing abroad, the Indian diaspora represents a large, sustained, and emotionally engaged demand base for authentic Indian food products across North America, Europe, the Middle East, and Asia-Pacific. Beyond direct consumption, the diaspora plays a pivotal role in driving mainstream adoption of Indian cuisine through cultural influence and word-of-mouth, introducing diverse populations to traditional flavours and culinary experiences.

Global Appetite for Ethnic and Authentic Food. The growing global curiosity for diverse cuisines has positioned Indian food at the forefront of ethnic culinary trends. Renowned for its rich flavours, aromatic spices, and vegetarian-friendly appeal, Indian cuisine continues to attract a broad spectrum of consumers, including vegan and gluten-free audiences. This universal appeal continues to fuel international demand for authentic, ready-to-consume Indian food products.

E-Commerce and Cross-Border Retail Growth. The expansion of global e-commerce platforms including Amazon, Walmart, and Instacart, alongside specialised ethnic e-tailers, has significantly enhanced the accessibility of Indian food brands to consumers worldwide. This digital retail growth enables seamless cross-border distribution, allowing brands to directly engage with a diverse and geographically dispersed customer base. ADF Foods Truly Indian brand has benefited directly from this trend, expanding its presence on Amazon and across 3,000+ US retail outlets.

Changing Lifestyles: Working Professionals and Nuclear Families. The rise in dual-income households and nuclear family structures has accelerated demand for convenient, reliable meal solutions. RTE and ready-to-cook (RTC) products offer practical options for time-constrained consumers seeking authentic, home-style meals without the complexity of traditional preparation.

Rising Popularity of Healthy Food. Health-conscious consumers globally are increasingly embracing Indian cuisine for its natural, plant-based ingredients and nutritional profile. This shift towards healthier eating has amplified demand for nutritious, minimally processed Indian food offerings that align with modern wellness trends, a space directly addressed by ADF Foods product profile.

International Food Certifications. Indian exporters are actively securing international certifications, including Halal, Kosher, USDA Organic, Non-GMO, and FSSAI compliance, to meet diverse regulatory and consumer standards. ADF Foods holds a comprehensive suite of these certifications across its manufacturing facilities in Nadiad and Nasik, supporting broader market access across the US, Middle East, Europe, and APAC regions.

ADF Foods Perspective on Emerging Industry Trends

ADF Foods is capitalising on the expanding global appetite for ethnic, authentic, and convenient food solutions through its differentiated portfolio in five brands, each addressing a distinct consumer segment and geography. Through Ashoka, the Company continues to deepen its franchise with the South Asian diaspora across 60+ countries, supported by a refreshed brand identity and sustained marketing investment including national TV campaigns. Through Truly Indian, it is unlocking the mainstream consumer opportunity in the

US and Germany, supported by a bold new visual identity and listings in marquee retail chains including Costco and Safeway Albertsons.

ADF Soul addresses the premium health-conscious domestic segment in India, with Indias first range of pickles and chutneys prepared in 100% extra-virgin olive oil and an expanding frozen range.

The Company has introduced vegan and gluten-free options across its portfolio, and is scaling sustainable packaging formats for international markets, reinforcing its alignment with evolving consumer preferences, quality excellence and regulatory expectations.

Company Overview

ADF Foods Limited is a leading global player in the packaged ethnic food industry, specialising in the production and export of convenience food products across 60+ countries. Established in 1932 as American Dry Fruits in Mumbai, the Company has transformed over nine decades into a major exporter and manufacturer of over 600+ SKUs, including ready-to-eat meals, frozen foods, pickles, chutneys, sauces, cooking pastes, Ready to eat products (RTE) and organic and plant-based offerings.

The Companys portfolio of five focused brands - Ashoka, Truly Indian, ADF Soul, Camel, and Aeroplane - serves three distinct customer segments: the South Asian diaspora worldwide, mainstream consumers in the US and Germany, and domestic urban consumers in India.

Products are available across global supermarkets, ethnic food stores, quick commerce platforms, and online channels.

During the year, the Company undertook a major brand refresh initiative aimed at strengthening brand visibility and relevance in key markets. The refreshed identity of Truly Indian was completed and unveiled in the first quarter, followed by the rollout of the renewed Ashoka brand identity in the second quarter across product portfolios and communication platforms.

At the same time, the Company strengthened its commercial capabilities in international markets. The reorganisation of the US sales team, the distribution business and establishment of a dedicated team in Australia have begun to deliver positive outcomes, supporting new product listings, deeper engagement with retail partners, and improved market reach.

In addition to its processed foods business, ADF Foods operates an agency distribution division, representing marquee packaged tea brands including Lipton Yellow Label, Brooke Bond Red Label, and Taj Mahal across the US and UK, providing complementary revenue and network benefits.

ADF Foods operates manufacturing facilities at Nadiad, Gujarat, and Nasik, Maharashtra, with a combined annual processing capacity of

28,000 MT. Both plants hold comprehensive international food safety certifications including FSSAI, FDA, SMETA, ISO 22000:2018, BRC Food Safety, Sedex, Non-GMO Verified, Kosher and Halal.

A third manufacturing facility, a greenfield project in Surat, Gujarat, commenced its Phase 1 commercial operations in the last Quarter of FY 26. This facility will add approximately 10,000 MTPA of production capacity in Phase 1. It is currently dedicated to frozen product lines and is expected to generate approximately Rs.250 Crore in revenues at full capacity.

The Company continues to participate in the Government of Indias Production Linked Incentive (PLI) scheme under Category III for food processing industries, which provides reimbursement of up to 50% of overseas branding and marketing expenditure, up to a maximum incentive of Rs. 61.35 crores over the scheme tenure from FY 2022 23 to FY 2026 27.

Financial Highlights

(Rs. in Crores except per share data)

Particulars	Standalone	Standalone	Consolidated	Consolidated
	FY25-26	FY24-25	FY25-26	FY24-25
Total Income	546.58	488.35	703.33	603.65
EBIDTA	131.12	105.21	130.66	98.36
EBIDTA margin	24.84%	22.00%	19.12%	16.68%
Interest	1.45	1.19	2.70	2.58
*PAT	104.01	80.19	96.75	69.26
PAT margin	19.70%	16.76%	14.16%	11.75%
Working capital	260.04	285.25	326.48	326.12
#Return on Net Worth	17.58%	16.67%	@ 16.92%	14.06%
RoCE	24.35%	21.58%	@ 23.38%	19.45%
Basic EPS (Rs.)	8.85	7.30	8.19	6.30
Diluted EPS (Rs.)	8.85	7.30	8.19	6.30

* PAT excludes exceptional item due to Labour Code impact.

@Return on Net worth and RoCE excludes exceptional items.

#Return on net worth is computed as net profit by average net worth. Net profit (Excl. Exceptional Items) increased from Rs. 69.26 Crores to Rs. 96.75 Crores on a consolidated basis and increased from Rs. 80.19 Crores to Rs. 104.01 Crores on a standalone basis. Return on net worth has increased in line with the net profits increase and change in average net worth on account of dividends paid.

Details of significant changes in key financial ratios on Standalone basis

Particulars	March 2026	March 2025
Debtors\u2019 turnover	102 days	87 days
Inventory turnover	3.68 times	4.36 times
Interest Coverage Ratio	97 times	91 times
Current Ratio	4 times	7.27 times
Debt-Equity Ratio	0.02 times	0.02 times
Operating profit margin (%)	26.62%	22.49%
Net profit margin (%)	20.04%	17.95%

Current Ratio: The decrease in working capital ratio is attributable to business growth needing deployment of surplus cash towards meeting of current liabilities. Operating profit margin is calculated as EBIT divided by Revenue from Operations.

Risks and Mitigation

1. Market Disruption and New business initiatives Risk

Risk: The Company is subject to geopolitical and market-specific risks in view of its international market presence and ongoing expansion initiatives. Adverse developments such as changes in trade regulations, geopolitical tensions, container and freight disruptions may impact sales, distribution and profitability. In addition, newer business initiatives, including the expansion of the ADF Soul portfolio and channel presence in India, as well as the ramp-up of the Surat facility may involve execution risks, slower-than-expected market traction and competitive pressures.

Mitigation:

US tariffs- The Company is managing this risk through stronger control over its US distribution and a better negotiation over pricing. Its distribution centres in the US provide better control over inventory and help reduce the impact of tariff-related uncertainty by allowing the Company to manage a larger part of the value chain directly. In the South Asian independent store channel, the Company exercises a better negotiation over end pricing.

Middle East business disruptions -The Company has been actively managing the impact of geopolitical tensions resulting disruptions to its Middle East business through alternate shipping routes and close coordination with logistics partners, distributors, and customers, addressing challenges arising from higher freight costs and extended transit times while maintaining continuity of supplies.

Newer business initiatives (Domestic business and ramp-up of Surat facility)- The ADF Soul portfolio and channel presence in India are being expanded in a phased manner, with ongoing review of product mix, pricing, consumer response and channel performance. In parallel, the ramp-up of the Surat facility is being aligned with demand visibility and operational readiness. The Company also remains focused on strengthening execution capabilities, improving market reach and maintaining cost discipline to support sustainable growth in these newer businesses.

2. Foreign Exchange Rate Fluctuation Risk

Risk: With over 99% of ADF Foods revenue derived from exports, the Company is exposed to fluctuations in foreign exchange rates. Movements in the Indian Rupee against key trading currencies may influence realisations and pricing competitiveness in international markets.

Mitigation: ADF Foods closely monitors foreign exchange movements and, where considered appropriate, undertakes selective hedging through forward contracts to manage currency volatility. The Company also optimises its mix of FOB and CIF delivery arrangements in response to prevailing currency and freight conditions.

3. Raw Material Inflation Risk

Risk: The Company is exposed to increases in key input costs, including raw materials, packaging materials, and fuel. Volatility in these costs, driven by factors such as climate variability, supply disruptions, and energy price fluctuations, can impact production costs and operating margins.

Mitigation: ADF Foods mitigates this risk through a diversified raw material sourcing strategy and by leveraging seasonal procurement, particularly for key agricultural inputs such as vegetables, to benefit from favourable pricing. The Company also sources materials from multiple suppliers to reduce dependency on any single source, while continuing to focus on operational efficiencies across its manufacturing facilities to support margin stability.

4. Competition Risk

Risk: The food processing industry is highly competitive, with the presence of both organised and unorganised players. Intensive competition can lead to market share erosion and pricing pressures, particularly in the ethnic food segment where barriers to entry are relatively low.

Mitigation: ADF Foods established portfolio of five brands, each with distinct positioning and strong consumer loyalty in their respective target segments, provides a durable competitive moat. The Company invests continuously in research and development, new product introductions, packaging innovation, and 360-degree marketing activity. Brand refreshes for both Ashoka and

Truly Indian in FY 2025 26 reinforce consumer visibility and shelf presence.

5. Product Quality and Safety Risk

Risk: As a player in the packaged food industry, ADF Foods faces risks related to product quality and safety. Any deviation from established standards can result in regulatory penalties, loss of consumer trust, and reputational damage.

Mitigation: The Company has implemented comprehensive monitoring systems across all business operations to ensure adherence to product quality and safety standards. ADF Foods manufacturing facilities hold a comprehensive suite of international certifications including FSSAI, FDA, BRC Food Safety, ISO 22000:2018, SMETA, Sedex, Non-GMO Verified, Kosher, and Halal, reflecting the highest standards of food safety governance.

Internal Control Systems and Adequacy

The Company has a sound internal control framework integrated with its financial controls and overseen by the management. This system ensures operational proficiency, optimal resource allocation, and compliance with all applicable laws and regulations. Key controls are reviewed during the year and corrective and preventive measures are taken as appropriate. Internal audits are organised systematically by designated audit teams. The Audit Committee approves the risk-based internal audit plan and also reviews the adequacy and efficacy of the Companys internal financial controls.

Human Resources

ADF Foods recognises that its people are central to driving operational excellence, innovation, and sustainable growth across its global footprint. The Company fosters a workplace culture anchored in knowledge enhancement, respect, collaboration, and career development. As of March 31, 2026, ADF Foods permanent workforce stood at 394 employees, forming the backbone of its manufacturing, supply chain, and corporate functions.

In FY 2025 26, ADF Foods continued to strengthen its leadership team, with targeted senior-level hiring in the US and Australia business, operations, and brand management functions to support its scaled growth agenda. Employee well-being remains a key priority, supported by structured welfare initiatives encompassing health and safety programmes, workplace engagement, and policies that promote work-life balance. The Company maintains a zero-accident culture, supplemented by health and accident insurance coverage and extensive training and career development programmes for its workforce.

As ADF Foods advances its domestic and international growth strategies, including the commissioning of the Surat facility and the scaling of the Truly Indian brand across the US, it remains committed to building a resilient, future-ready workforce aligned with its long-term growth vision.

Opportunities and Outlook

ADF Foods enters FY 2026 27 from a position of meaningful operational and strategic strength. The completion of its Surat Greenfield facility, a deepened US retail footprint, refreshed brand identities for both Ashoka and Truly Indian, and full ownership of its US distribution subsidiary collectively position the Company to scale with greater control and efficiency than at any prior point in its history.

Capacity Expansion: Phase 1 of the Surat Greenfield facility, an investment of approximately Rs. 90 crores, has commenced its Phase I commercial operations in Q4 FY26. The facility is focused on expanding frozen food production capacity and is expected to contribute incremental revenues of Rs. 250 crores at full utilisation. Combined with completed brownfield and debottlenecking investments at the Nadiad and Nasik plants, which are expected to contribute incremental revenues of Rs. 180 200 crores, the Companys total production infrastructure is substantially enhanced heading into FY27.

Retort Expansion: The new brownfield retort expansion, completed during FY 2025 26, enhances the Companys capability for extended shelf-life products across its RTE range, supporting both ambient and retail distribution in international markets.

US Market Deepening: ADF Foods presence in the US mainstream market has grown meaningfully, with Truly Indian listed across 3,000+ retail outlets including Costco and Safeway Albertsons. The full ownership of Vibrant Foods LLC and the strengthened cold storage and warehousing infrastructure in New Jersey and Atlanta position the Company to serve this expanded retail footprint with improved fulfilment efficiency.

Ashoka Brand Momentum: Ashoka, the Companys flagship brand, delivered a five-year CAGR of over 22%, growing from

Rs. 119 crores in FY21 to Rs. 308 crores in FY26. New listings secured in the US, UK, and Australia during FY26 are expected to contribute positively through FY27. The brands refreshed visual identity, launched in Q2 FY26, enhances shelf visibility and brand recognition across all markets.

Distribution Business: The agency distribution division, representing Lipton Yellow Label, Brooke Bond Red Label, and Taj Mahal Tea, continues to deliver stable revenues while providing complementary network benefits for ADF Foods own brand distribution across the US and UK.

India Business: In the domestic market, the Company continued to develop its business under the ADF Soul brand, which is positioned as a better-for-you packaged foods offering for urban Indian consumers. During the year, the brand expanded its portfolio across pickles, chutneys, dips and frozen foods, including parathas, samosas, frozen breads and snacks. The Company also widened the brands reach through its own proprietary website www.soul-foods.in, leading e-commerce and quick-commerce platforms, as well as select modern trade outlets in Mumbai and Pune. Brand-building and digital marketing initiatives were also undertaken during the year. While the scale-up of the brand remained gradual, the Company continued to refine its go-to-market approach and expand its channel presence in the domestic market.

Sustainability and ESG focus: The Company has embedded sustainability into its operations and ESG agenda and has taken certain remarkable environmental initiatives during year under review -

1. Zero Liquid Discharge Nadiad Plant

In FY 2025-26, a Zero Liquid Discharge (ZLD) plant has been installed at the Companys Nadiad manufacturing facility. This initiative ensures that no liquid effluent is discharged from the plant with all process water treated and recycled within the facility, contributing significantly to water conservation and compliance with environmental norms.

2. ZLD Upgradation Nasik Plant

The existing ZLD system at the Nasik plant has been upgraded and continues to operate at high efficiency, recycling approximately 200,000 litres of water per day in comparison with previous capacity of around 90,000 litres/day.

3. Renewable Energy Nadiad Plant

The Company has taken concrete steps towards transitioning to renewable energy at its Nadiad manufacturing facility. The hybrid renewable energy arrangement being implemented is expected to meet approximately 70% of the Nadiad plants total power requirements from FY 2026-27, materially reducing dependence on conventional grid power and lowering the facilitys carbon footprint.

Looking ahead, ADF Foods maintains its growth aspiration to reach upwards of Rs. 900 crores by FY27, driven by organic growth through market penetration and new listings, capacity enhancements from the Surat Greenfield and completed brownfield investments, innovation-led product expansion, and the scaling of the distribution business. Continuous focus on operational efficiency, brand equity, and responsible business practices will underpin the Companys long-term value creation strategy.

Cautionary Statement

Statements in this Management Discussion and Analysis describing the Companys objectives, expectations, or predictions may be forward-looking within the meaning of applicable laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include raw material availability and prices, cyclical demand and pricing in the Companys principal markets, competitive actions, changes in government regulations, tax regimes, economic developments in India and in countries in which the Company conducts business, trade policy developments including tariffs and non-tariff barriers, geopolitical developments, and other incidental factors.

References

1 IMF World Economic Outlook Update, January 2026

2 IMF World Economic Outlook, April 2026

3 World Bank Global Economic Prospects, January 2026

4 IMF World Economic Outlook, April 2026 IMF World Economic Outlook, April 2026

IMF World Economic Outlook, April 2026IMF World Economic Outlook, April 2026

IMF World Economic Outlook, April 2026 IMF World Economic Outlook Update, January 2026

10 Indian Economic Survey 2025-26

11 Reserve Bank of India, Monetary Policy Reports, 2025

12 India Brand Equity Foundation, Food Processing Industry, 2026.

13 Economic Times, Consumer Market Report, 2025

14 IMARC Group, Ethnic Foods Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2024 2032

15 Fortune Business Insights, RTE Food Market Report, 2024 2032

16 Markets and Data Research, India Ready-to-Eat Food Market Outlook 2023 2031

Additional chart sources: IMF World Economic Outlook, April 2026; Fortune Business Insights Ethnic Food Market release; IMARC Group ready-to-eat food market data as cited in market reports; ADF Foods Q4 FY26 investor materials.