Advance Agrolife Ltd Management Discussions

1. Economic Review

1.1 Global Economy

The global economy, despite demonstrating resilience amid elevated trade barriers and uncertainty, faces renewed challenges due to escalating geopolitical tensions in the Middle East. Rising commodity prices, higher inflation expectations and tighter financial conditions are exerting pressure on economic activity, particularly in commodity-importing emerging markets. Assuming the conflict remains contained, global growth is projected at 3.1% in CY2026 and 3.2% in CY2027, remaining below recent trends and prepandemic averages.

Global inflation is expected to rise temporarily from 4.1% in CY2025 to 4.4% in CY2026, before moderating to 3.7% in CY2027, driven primarily by higher energy and food prices. Meanwhile, global trade growth is projected to slow from 5.1% in CY2025 to 2.8% in CY2026, before recovering to 3.8% in CY2027, reflecting the impact of trade barriers, supply chain realignments and geopolitical uncertainties. While goods trade is expected to remain subdued, services trade is likely to remain relatively resilient.

Outlook

The global outlook remains exposed to risks from geopolitical conflicts, trade tensions, geoeconomic fragmentation and financial market volatility. Elevated debt levels and persistent inflationary pressures could further weigh on growth. However, productivity gains from technological advancements, including artificial intelligence, along with supportive policy measures and easing trade tensions, could support economic activity and gradual disinflation over the medium term.

1.2 Indian Economy

Despite a challenging global environment marked by geopolitical tensions and evolving trade dynamics, India remained one of the fastest-growing major economies, with GDP growth estimated at 7.7% in FY2025-26. Growth was primarily driven by resilient domestic consumption and strong investment activity, while the impact of US tariffs remained limited, with net exports exerting only a marginal drag on economic performance.

On the supply side, robust growth in the services and manufacturing sectors more than offset moderation in agriculture. While adverse weather conditions affected certain kharif crops, favourable rabi output helped foodgrain and horticulture production reach record levels. Policy initiatives such as the National Mission on High Yielding Seeds continued to strengthen the sectors long-term outlook. Manufacturing momentum remained strong, supported by the Production Linked Incentive (PLI) Scheme, which has attracted investments exceeding Rs2.16 lakh crore across 14 sectors as of April 2026. Infrastructure development also remained a key growth driver, with capital expenditure budgeted at Rs12.2 lakh crore, or 3.4% of GDP, in the Union Budget FY2026-27.

Outlook

Indias economic outlook for FY2026-27 remains positive, supported by strong macroeconomic fundamentals, healthy corporate and banking sector balance sheets, resilient domestic demand and continued government focus on infrastructure and capital investment. Ongoing reforms, expanding manufacturing capabilities, digital infrastructure investments and trade agreements with key partners are expected to support growth momentum. While geopolitical uncertainties, global trade developments and weather-related risks may pose near-term challenges, the medium-term growth outlook remains favourable.

2. Industry Review

2.1 Global Agrochemical Industry

According to Persistence Market Research, the global agrochemicals market is estimated at USD 251.4 billion in 2026 and is projected to reach USD 346.7 billion by 2033, registering a CAGR of 4.7% during the period. Growth is being driven by the increasing need to enhance agricultural productivity amid rising food demand, shrinking arable land availability and growing pressure on global food systems.

The industry comprises three key segments: crop protection chemicals, crop nutrition products, and biological solutions each playing a critical role in improving crop yields and safeguarding agricultural output. The market continues to benefit from technological advancements, supportive government policies, particularly in emerging economies, and a gradual shift towards sustainable and environmentally responsible agricultural inputs.

Outlook

The long-term outlook for the global agrochemicals industry remains positive, supported by rising food demand, increasing focus on crop productivity and the need for sustainable farming practices. While regulatory changes, environmental considerations and commodity price volatility may create nearterm challenges, continued innovation in crop protection technologies, biological solutions and precision agriculture is expected to support industry growth over the coming years.

2.2 Indian Agrochemical Industry

The Indian agrochemicals industry continues to be supported by robust agricultural fundamentals, with domestic demand providing a stable foundation for longterm growth. Rising agricultural activity, improving farm economics and increasing awareness of crop protection solutions continue to drive industry expansion despite global market uncertainties.

Demand is further supported by a steady increase in cultivated area, which reached approximately 29.5 million hectares in FY 2024-25, alongside record foodgrain production of around 369 million tonnes, reflecting higher cropping intensity and greater input requirements. Additionally, supportive government initiatives and the continued expansion of distribution networks have enhanced product accessibility, with pesticide retail outlets exceeding 3 lakh sale points across the country. Improved last-mile reach and deeper market penetration are expected to further strengthen domestic demand for agrochemical products.

While pricing remains under pressure due to global oversupply, particularly from China, operating conditions have improved across key export markets. Geopolitical developments have led to periodic volatility in energy and logistics costs; however, profitability across the sector has strengthened on the back of cost normalisation, improved product mix and recovering volumes. As a result, operating margins have gradually moved closer to pre-correction levels.

Growth Drivers

- Strong domestic agricultural demand supported by increasing crop cultivation and higher cropping intensity.

- Rising foodgrain production, driving demand for crop protection products and yieldenhancing solutions.

- Expansion of distribution networks, improving product accessibility and market penetration across rural regions.

- Growing adoption of modern farming practices and greater awareness of crop protection benefits.

- Government focus on agricultural productivity and farmer incomes, supporting long-term industry growth.

- Stable export opportunities, backed by Indias strong position in the global agrochemicals supply chain.

- Normalisation of channel inventories across major export markets, supporting volume-led recovery.

- Diversified product portfolio across fungicides, herbicides and insecticides, contributing to earnings stability and operational efficiency.

Challenges for the Industry

- Environmental Sustainability: Increasing focus on sustainable agriculture is accelerating the shift towards safer and eco-friendly crop protection solutions.

- Stringent Regulatory Framework: Lengthy product registration and approval processes can delay commercialisation and increase compliance costs.

- Raw Material Dependence: Reliance on imported technicals and intermediates exposes the industry to supply chain disruptions and input cost volatility.

The Indian agrochemicals industry (excluding fertilizers) is expected to grow by 6-8% in FY 2026-27, supported by resilient domestic demand, higher cropping intensity and expanding distribution networks. While pricing pressures and geopolitical uncertainties may persist in the near term, normalised inventory levels, improving global demand and continued investments in distribution, product development and manufacturing capabilities are expected to support sustainable industry growth over the medium term.

2.3 Indian Crop Protection Market

The Indian crop protection chemicals market is witnessing steady growth, driven by the increasing need to enhance agricultural productivity and strengthen food security. The development of pest resistance to existing chemicals, expanding cultivable areas, and continued government support for modern agricultural inputs are supporting market growth. In addition, the adoption of precision agriculture, integrated pest management practices, and biological crop protection solutions is reshaping the industry, while increasing focus on domestic manufacturing and export competitiveness is expected to support its long-term growth.

Key Growth Drivers

- Rising adoption of precision agriculture, including drone spraying and IoT- enabled farming.

- Increasing demand for climate-resilient crop protection solutions to minimise pest- and disease-related crop losses.

- Growing adoption of biological crop protection products, including bio-fungicides and natural- origin chemicals.

- Rising export opportunities supported by Indias strong manufacturing capabilities and growing investments in R&D.

- Increasing use of targeted seed treatment and precision application methods to improve input efficiency.

Key Challenges

- Proliferation of counterfeit and substandard agrochemical products.

- Fragmented rural distribution networks limiting the penetration of advanced crop protection solutions.

- Continued reliance on older generic formulations, contributing to pest resistance and soil degradation.

Government Initiatives

- Promotion of Integrated Pest Management (IPM) to balance chemical and biological crop protection.

- Emphasis on compliance with Maximum Residue Limits (MRLs) to strengthen agricultural exports.

- Support for domestic manufacturing under the Make in India initiative to reduce import dependence on technical-grade intermediates.

Key Trends

- Increasing focus on bio-based and natural crop protection solutions.

- Rising adoption of targeted seed treatment and precision application technologies.

- Strong demand from cereals and grains, with faster value growth in fruits and vegetables.

- Integration of AI-enabled supply chain solutions to improve traceability and reduce counterfeit products.

2.4 Global Insecticides Industry

The global insecticides market continues to witness steady growth, driven by rising global food demand, increasing population, and the need for higher agricultural productivity. The Asia-Pacific region remains the largest market, supported by its large agricultural base and intensive farming practices.

Insecticides play a critical role in protecting crops from insect infestations, which are estimated to reduce global agricultural yields by 20-40% annually. As the need to enhance food production intensifies amid population growth and changing consumption patterns, demand for effective crop protection solutions continues to rise. The Food and Agriculture Organisation (FAO) estimates that global food production must increase substantially by 2050 to meet future food requirements, further supporting the long-term demand for insecticides.

Growth Drivers

- Rising global food demand and the need to improve agricultural productivity.

- Increasing crop losses caused by insects, pests and disease outbreaks.

- Growing adoption of crop protection products to enhance yield and crop quality.

- Expansion of commercial farming and high-value crop cultivation.

- Increasing awareness of integrated pest management practices.

- Technological advancements in insecticide formulations and application methods.

- Development of biological and environmentally sustainable insecticide solutions.

- Rising agricultural activity across emerging economies, particularly in Asia-Pacific and Latin America.

- Continued investments in research and development by leading agrochemical companies to address pest resistance and improve product efficacy.

The outlook for the global insecticides industry remains positive, supported by increasing food security requirements, growing agricultural intensification and continuous product innovation. The industry is witnessing a gradual shift towards more sustainable and biological crop protection solutions, alongside advancements in precision agriculture and integrated pest management practices. These trends are expected to support steady market growth over the long term while addressing evolving regulatory and environmental requirements.

2.5 Indian Insecticides Industry

The Indian insecticides market is expected to witness steady growth, supported by increasing agricultural intensification, low per-hectare pesticide consumption, expanding adoption of precision agriculture technologies, and rising awareness of crop protection practices.

India continues to offer significant growth potential, with pesticide consumption remaining substantially below global averages. The industry is also benefiting from government-led initiatives promoting modern farming techniques, increasing adoption of drone-based spraying solutions and growing emphasis on integrated pest management practices. Additionally, Indias emergence as an alternative global manufacturing hub is creating new opportunities for domestic producers through contract manufacturing and export- oriented growth.

Growth Drivers

- Low per-hectare pesticide consumption

- Rising crop protection requirements

- Growing adoption of precision agriculture technologies

- Government support for drone-based spraying and farm modernisation initiatives

- Increasing awareness of safe and efficient crop protection practices among farmers

- Rising demand for advanced insecticide molecules

- Expansion of contract manufacturing opportunities

- Strong growth in commercial and high-value crop cultivation

- Improving rural distribution networks and digital agri-input channels

- Continued investments in product innovation and research

The outlook for the Indian insecticides industry remains positive, supported by favourable agricultural fundamentals, increasing technology adoption and expanding manufacturing opportunities. While pricing pressures and regulatory developments remain key considerations, growing domestic demand, export opportunities and the transition towards advanced crop protection solutions are expected to support steady long-term growth.

2.6 Global Herbicide Industry

The global herbicides market is expected to witness steady growth, driven by the increasing need to improve agricultural productivity, manage weed infestations, and support efficient crop production amid rising global food demand.

Herbicides continue to play a critical role in modern agriculture by helping farmers control weeds, reduce crop losses and enhance yields. The industry is also benefiting from growing adoption of precision farming techniques, increasing mechanisation and the development of more effective and sustainable crop protection solutions.

Growth Drivers

- Rising global food demand and the need for higher agricultural productivity

- Increasing weed infestation and crop protection requirements

- Growing adoption of modern and mechanised farming practices

- Labour shortages in agriculture, driving demand for efficient weed-control solutions

- Expansion of precision agriculture and smart farming technologies

- Increasing focus on sustainable agriculture and resource optimisation

- Growing development and adoption of bio-based and environmentally friendly herbicides

- Rising incidence of pest and weed resistance, driving demand for advanced formulations

- Greater emphasis on integrated weed management practices

- Continued innovation in herbicide chemistries and application technologies

The global herbicides industry is poised for sustained growth, driven by the increasing emphasis on crop yield optimisation, effective weed control and enhanced farm productivity. The industry is expected to benefit from continued innovation in selective and bio-based herbicides, alongside the broader adoption of precision agriculture and sustainable farming practices. These trends are likely to support steady growth while addressing evolving environmental and regulatory requirements.

2.7 Indian Herbicides Industry

The Indian herbicides market is expected to witness strong growth, driven by the increasing shift towards chemical weed management, rising labour costs, growing farm mechanisation, and the adoption of modern agricultural practices.

Demand for herbicides is being further supported by government initiatives promoting precision agriculture, increasing use of drone-based spraying technologies and the expansion of herbicide-tolerant crop varieties. In addition, regulatory support for new active ingredients and advancements in weed management solutions are contributing to the industrys growth trajectory.

Growth Drivers

- Rising labour costs and labour shortages

- Growing adoption of herbicide-tolerant crops

- Increasing incidence of herbicide-resistant weeds

- Expansion of precision agriculture and drone spraying

- Government support for farm mechanisation

- Growing demand for efficient weed management solutions

- Rising cultivation of commercial and high- value crops

- Adoption of advanced and postemergence herbicides

- Regulatory approvals for new active ingredients

- Improving distribution reach and input accessibility

- Increasing focus on farm productivity and yield enhancement

- Shift towards technology-enabled crop protection practices

The outlook for the Indian herbicides industry remains favourable, supported by increasing mechanisation, rising adoption of modern weed management practices and growing demand for productivity-enhancing agricultural inputs. Continued innovation in herbicide technologies, expansion of precision application methods and supportive policy initiatives are expected to drive market growth. As farmers increasingly focus on improving operational efficiency and crop yields, herbicides are expected to play an increasingly important role in Indias evolving agricultural landscape.

2.8 Global Fungicides Industry

The global fungicides market is expected to witness steady growth, driven by the increasing need to protect crops from fungal diseases, improve agricultural productivity, and support global food security amid rising population levels and limited arable land availability.

Fungicides play a critical role in safeguarding crop yields and quality by controlling a wide range of fungal infections. Growth in fungicide consumption is particularly strong across Asia-Pacific, South America and other key agricultural regions, supported by expanding agricultural activity, evolving farming practices and increasing focus on yield optimisation.

The global fungicides industry is expected to witness steady growth, supported by increasing disease management requirements, expanding high-value crop cultivation and continuous product innovation. Advancements in fungicide chemistries, precision application technologies and resistance-management solutions are expected to enhance product effectiveness and support sustainable agricultural practices. As farmers increasingly prioritise crop health, productivity and quality, fungicides will remain an essential component of modern crop protection strategies.

2.9 Indian Fungicides Industry

The Indian fungicides market is expected to witness steady growth, driven by increasing disease management requirements, rising adoption of modern crop protection practices, and expanding cultivation of high-value crops.

The industry is benefiting from greater awareness of crop health management, increasing adoption of precision agriculture technologies and supportive government initiatives promoting efficient pesticide application. Strong domestic demand, coupled with Indias growing role as a global agrochemical manufacturing hub, continues to support industry expansion.

Growth Drivers

- Rising incidence of fungal diseases and crop losses

- Growing cultivation of fruits, vegetables and commercial crops

- Increasing adoption of precision agriculture and drone spraying

- Rising focus on crop quality and yield enhancement

- Growing demand for disease resistance management solutions

- Expansion of modern crop protection and integrated pest management practices

- Increasing agricultural mechanisation and technology adoption

- Rising farm labour costs supporting chemical crop protection solutions

- Strong agrochemical manufacturing and export capabilities

- Supportive government initiatives for precision application and sustainable farming

The Indian fungicides industry is expected to witness steady growth, supported by increasing disease management needs, higher adoption of advanced crop protection technologies and growing awareness of sustainable farming practices. Continued innovation in fungicide formulations, precision application techniques and integrated crop management solutions is expected to enhance product effectiveness and support long-term industry growth.

2.10 Global Plant Growth Regulators (PGR) Industry

The global plant growth regulators (PGR) market is expected to witness strong growth, driven by the increasing need to enhance crop productivity, improve crop quality, and optimise agricultural output amid rising global food demand.

Plant growth regulators play a vital role in modern agriculture by influencing plant growth, flowering, fruit development, ripening and yield. Their adoption is increasing across commercial farming, horticulture and high-value crop cultivation as farmers seek to improve productivity, resource efficiency and crop quality.

Growth Drivers

- Rising global food demand and agricultural productivity requirements

- Increasing adoption of intensive and commercial farming practices

- Growing cultivation of horticultural and high- value crops

- Rising demand for crop yield and quality enhancement solutions

- Expansion of precision agriculture and data-driven farming practices

- Increasing adoption of bio-based and sustainable agricultural inputs

- Growing focus on sustainable crop management and resource efficiency

- Rising demand for controlled flowering, maturity and ripening solutions

- Supportive regulatory initiatives promoting agricultural productivity

- Increasing adoption of plant growth regulators in organic farming systems

The global plant growth regulators industry is poised for sustained growth, driven by increasing focus on improving crop productivity, quality and sustainability. Growing adoption of precision farming techniques, expansion of horticultural cultivation and rising demand for bio-based agricultural solutions are expected to drive market growth. As farmers increasingly seek efficient and sustainable methods to maximise yields and optimise crop performance, plant growth regulators are expected to play an increasingly important role in modern agricultural practices.

2.11 Indian Plant Growth Regulators (PGR) Industry

The Indian plant growth regulators market is expected to witness steady growth, driven by the increasing need to improve crop productivity, enhance crop quality, and support sustainable agricultural practices.

The market is witnessing rising adoption across field crops, horticulture and floriculture, as farmers increasingly focus on yield optimisation, quality improvement and efficient crop management. Government initiatives promoting scientific farming methods and higher agricultural productivity are further supporting market growth.

Growth Drivers

- Rising demand for higher crop yields and agricultural productivity

- Growing adoption of scientific and precision farming practices

- Increasing cultivation of fruits, vegetables and horticultural crops

- Expansion of the floriculture industry

- Rising demand for quality produce and crop uniformity

- Growing awareness of sustainable farming practices

- Government support for agricultural productivity enhancement

- Increasing use of PGRs for flowering, fruit setting and ripening management

- Adoption of advanced crop management techniques

- Growing demand for high-value and export- oriented crops

The Indian plant growth regulators industry is expected to witness steady growth, supported by increasing adoption of modern farming practices, rising horticultural and floricultural cultivation, and the growing need for yield and quality enhancement. As farmers focus on improving productivity and profitability while adopting sustainable agricultural solutions, demand for plant growth regulators is expected to remain strong over the long term.

3. Company Overview

Established in 2002, Advance Agrolife Limited (AAL) is a leading agrochemical manufacturer engaged in the production of technical and formulated crop protection products, primarily serving the B2B segment. The Companys diversified portfolio includes insecticides, fungicides, herbicides and plant growth regulators, catering to a broad spectrum of agricultural and crop protection needs.

AAL operates three manufacturing facilities supported by in-house quality testing laboratories, ensuring compliance with stringent quality standards and regulatory requirements. To support future growth and enhance manufacturing capabilities, the Company is developing a fourth production facility in Jaipur, Rajasthan.

With more than 400 product registrations across multiple agrochemical categories, AAL has built a strong position within the agri-input industry. The Company remains committed to delivering high- quality, effective crop protection solutions while advancing sustainable agricultural practices through responsible manufacturing and integrated pest management approaches.

Segmental Overview

Formulation Grade	92.34%
Technical Grade	6.26%
Others	1.40%

Revenue by geographical market (Rs in millions)

Domestic	97.7%
Foreign	2.3%

4. Financial Overview

The Companys recent capacity augmentation initiatives, particularly the substantial expansion of its 2,4-D herbicide manufacturing capabilities, have significantly enhanced its production throughout and established the scale required to support sustainable revenue growth.

A major catalyst for margin accretion has been the continued deepening of backward integration across the value chain. By internalising the production of technical-grade intermediates and active ingredients, the Company has reduced dependence on external suppliers, enhanced supply chain resilience and achieved greater control over input costs. This strategic shift has resulted in improved value capture, better gross margin realisation and operating leverage benefits arising from higher capacity utilisation.

With strengthened manufacturing integration, improved asset efficiency and enhanced production scalability, the Company is transitioning from a supply- constrained operating model to a growth-oriented market expansion phase. This positions the Company to accelerate market penetration, improve product availability and capitalise on emerging opportunities in the domestic and export agrochemical markets.

The Company has prepared its financial statements in accordance with the applicable Indian Accounting Standards (Ind AS) and the relevant provisions of

the Companies Act, 2013. No accounting treatment different from that prescribed under the applicable Accounting Standards has been adopted in the preparation of the financial statements. Accordingly, no such disclosure or management explanation is required.

Profit and loss statement

(Rs in millions)

Particulars	FY26	FY25	Growth (Change in %)
Revenue from Operations	6377.75	5022.6	27%
COGS	5293.89	4139.54	28%
Employee Benefits Expense	150.44	113.07	33%
EBITDA	676.62	482.45	40%
Finance Costs	86.67	54.33	60%
PBT	481.1	352	37%
PAT	352.84	256.38	38%
EPS (in f)	6.50	5.70	14%

Balance Sheet

(Rs in millions)

Particulars	FY26	FY25	Growth (Change in %)
Total Equity	3099.14	1008.73	207%
Long term Borrowings	173.58	147.88	17%
Short term Borrowings	786.99	644.56	22%
Total Non Current Assets	1306.19	790.14	65%
Total receivable	1962.41	1630.71	20%
Cash and Cash Equivalents	54.54	5.77	845%
Land & Building	304.66	231.49	32%

Financial Ratios

Key Financial Ratio	FY26	FY25	% Change	Reasons for change
Trade Receivables (Debtors) Turnover	3.55	3.28	8%	-
Inventory Turnover	3.33	5.6	-41%	Decreased due to a significant increase in average inventory levels maintained during the year to support higher production capacity and anticipated business requirements, resulting in a comparatively lower turnover.
Interest Coverage Ratio	6.55	7.48	-12%	-
Current Ratio	1.67	1.16	44%	Due to the strengthening of the Companys working capital position pursuant to the infusion of funds through the Initial Public Offering (IPO), resulting in improved liquidity.
Debt Equity Ratio	0.32	0.8	-60%	Improved significantly due to the strengthening of the Companys net worth pursuant to the infusion of funds through the Initial Public Offering (IPO), thereby reducing the Companys reliance on borrowings.
Operating Profit Margin (%)	8.28	7.97	4%	-
Net Profit Margin (%)	5.53	5.1	8%	-

Return on Net Worth changed from 29.11% in FY 202425 to 17.24% in FY 2025-26. The change was primarily attributable to the increase in the Companys average net worth following the equity infusion through the Initial Public Offering (IPO) during the year. During FY 2025-26, the Company recorded healthy growth in profitability; however, the increase in average shareholders funds consequent to the IPO was proportionately higher than the growth in profit, resulting in a moderation in the Return on Net Worth.

The Company expects the deployment of the IPO proceeds towards its strategic growth initiatives to support improved returns over the medium to long term.

During the financial year under review, the Company recorded improved operational and financial performance, driven by higher sales volumes, increased customer demand and continued focus on operational efficiencies. The growth in revenue from operations and profitability reflects the Companys continued emphasis on operational excellence and strengthening its market presence.

During the year, the Company strengthened its manufacturing capabilities through backward integration by commencing production of Pretilachlor

Technical and its intermediate, PEDA. These initiatives are expected to enhance operational control, improve manufacturing efficiencies and support long-term value creation. The Company also expanded its production capacity during the year, which is expected to support future business growth and enable it to cater to increasing market demand.

The successful completion of the Initial Public Offering (IPO) during the year further strengthened the Companys capital base and financial position. The proceeds from the IPO are being deployed towards the Companys strategic objectives, including capacity expansion, working capital requirements and other long-term growth initiatives. The Company remains focused on enhancing operational efficiency, strengthening its manufacturing capabilities, expanding its market presence and creating sustainable value for all stakeholders.

As on 31^st March, 2026, the Companys Equity Capital stood at Rs642.86 Millions whereas of previous year i.e. 31^st March 2025 stood at Rs450.00 Millions.

Total borrowings of AAL as of 31^st March, 2026 stood at Rs960.57 Millions vis-a-vis Rs792.44 Millions as on 31^st March, 2025.

Opportunities

Evolving Supply Chains: Supply chain diversification away from China is creating opportunities to expand global partnerships and strengthen the Companys position.

Product Diversification: New products across performance chemicals, fuel additives and intermediates are strengthening portfolio resilience.

Government Support: Government initiatives supporting agricultural productivity, crop diversification and domestic chemical manufacturing are supporting industry growth.

Trade Tailwinds: Zero tariffs on Indian agricultural products in the US could create growth opportunities for the agricultural and agrochemicals sectors.

Threats

Climate Volatility: Erratic weather and rainfall can disrupt sowing cycles, manufacturing operations and agrochemical demand.

External Pricing Pressures: High global capacities and Chinese exports are intensifying competition and limiting pricing power for legacy products.

Regulatory Difficulties: Prolonged registration cycles for new molecules may delay product launches and revenue realisation.

5. Human Resources

The Company regards its employees as its most valuable asset and is committed to fostering an inclusive, collaborative and performance-oriented work environment. It focuses on attracting, developing and retaining talent through structured learning and development programmes, employee engagement initiatives and robust performance management practices. By promoting a culture of innovation, accountability and workplace safety, the Company empowers its workforce to contribute meaningfully to organisational growth and long-term success. As on March 31, 2026, the Company had a total workforce of 299 employees.

6. Risk Management

The Company has established a robust risk management framework to identify, assess, monitor and mitigate risks that may impact its business objectives, operations and growth prospects. Key risks across business functions are systematically evaluated and addressed through appropriate mitigation measures, ensuring effective risk management across the organisation.

The Board of Directors periodically reviews the Companys risk profile and mitigation strategies, providing oversight and guidance on critical risk matters. The management continuously monitors the internal and external business environment to identify emerging risks and implement timely preventive and corrective actions. This proactive approach enables the Company to enhance resilience, safeguard stakeholder interests and support sustainable business growth.

7. Internal Control

The Company has established adequate internal control systems commensurate with the size, nature, and complexity of its business operations. These systems are designed to safeguard assets, ensure the accuracy and reliability of financial and operational information, promote operational efficiency, and ensure compliance with applicable laws, regulations, and internal policies. The effectiveness of the internal control framework is periodically reviewed through internal audits and management assessments, and necessary corrective actions are implemented to strengthen the control environment on an ongoing basis.

8. Cautionary Statement

Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations, or predictions may constitute "forward-looking statements" within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied due to various factors, including changes in economic conditions, government policies, industry developments, market dynamics, competitive pressures, and other risks and uncertainties beyond the Companys control. The Company undertakes no obligation to publicly update or revise any forward-looking statements based on subsequent developments, information, or events, except as required under applicable laws and regulations.