Ajanta Soya Ltd Management Discussions

Cautionary Statement

The Management Discussion and Analysis sections contain the Companys objectives, projections, estimates and expectations may constitute certain statements, which are forward-looking within the meaning of applicable laws and regulations. The statements in this management discussion and analysis report could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand/supply and price conditions in the Government policies, tax regimes, forex markets, economic developments within India and the countries with which the Company conducts business, political factors and such other factors beyond the control of the Company.

Overview

The Company is engaged in the primary business of manufacturing of Vanaspati and various kinds of refined oil with shortening products for bakery like biscuits, puffs, pastries and other applications.

Ajanta Soya Limited ("ASL") is a leading manufacturer and marketer of Vanaspati, Edible Oils and Bakery Application since two decades. The company has focused on continuous expansion, across business verticals to consolidate, and its industry leadership over the years. The company is promoted by well established group having and proven track record in the fields of edible oils.

By way of periodical expansion, ASL has increased its production capacity from time & again to cater to changing business environment & varied customer needs. The companys turnover has increased manifold over the decades and is expected to grow substantially in subsequent years. ASL also focuses on in-house research and innovation to be a low-cost manufacturer with high-quality products and innovative customer offerings.

ASL is now a Company with a strong portfolio of brands viz. "Dhruv", "Anchal", "Parv", "ASL", "ASL Pure", "ASL Fine Fingers" and "Nutri 1992" and enjoys reputed market share. ASL also offers its quality products as food ingredients to serve food manufacturers and food service industry.

ASL has strived for its commitment and promises to all the stakeholders and has valued their effort for making it a renowned brand, thereby increasing shareholder value. ASL has always been a front runner in taking all the developmental and social initiatives for its stakeholders including employees, customers, society, investors, promoters, vendors and government bodies.

Advanced technology has been the forte of AJANTA. Its state-of-the-art manufacturing plant has been following the highest standards of quality with an emphasis on sustainability. The Company after successful expansion in its refining capacity is now focusing on increasing the capacity utilization by market expansion for its different products and their variants for growing market demands.

Superior procurement and trading skills, continuous innovation, an endeavor to meet consumer needs and stringent quality control standards have enabled AJANTA to emerge as a highly-respected and admired Edible Oil Company.

Company is also investing continuously towards energy saving by adopting appropriate technologies as a measure to contribute to reduction in Industrial Pollution.

The management of the unit is very progressive by nature and the companys affairs are being managed by highly qualified/experienced professionals and the Company is promoted by well-established group having a proven track record in the field of edible oil.

INDUSTRY STRUCTURE, DEVELOPMENTS AND OUTLOOK

Industry Structure

The Indian edible oil industry is one of the largest segments of the countrys food and FMCG sector and plays a critical role in ensuring food security. According to the Ministry of Consumer Affairs, Food & Public Distribution, India continues to be the worlds largest importer of edible oils, as domestic production remains insufficient to meet the growing demand driven by population growth, urbanisation and changing dietary preferences. The industry comprises organised and unorganised players engaged in the processing, refining, packaging and marketing of edible oils, with palm oil, soybean oil and sunflower oil accounting for a significant share of domestic consumption.

Industry Developments

During FY 2025-26, the edible oil industry operated in a dynamic environment characterised by fluctuations in international commodity prices, geopolitical developments, weather-related disruptions in major producing countries and foreign exchange volatility. International prices of palm, soybean and sunflower oils continued to influence domestic edible oil prices and procurement costs.

The Government of India continued its efforts to enhance domestic oilseed production through the National Mission on Edible Oils Oil Palm (NMEO-OP) and the National Mission on Edible Oils Oilseeds (NMEO-Oilseeds), with the objective of reducing long-term import dependence and strengthening domestic self-sufficiency. The National Mission on Edible Oils Oilseeds was approved for the period from 2024-25 to 2030-31, with the objective of increasing domestic oilseed production, improving productivity and reducing dependence on edible oil imports.

Consumer demand for branded and packaged edible oils remained resilient during the year, supported by increasing health awareness, rising disposable incomes and sustained growth in organised retail and food processing industries. At the same time, organised players continued to invest in refining capacity, automation, packaging technologies and supply chain optimisation to improve operational efficiency, product quality and customer reach.

Outlook

The long-term outlook for the Indian edible oil industry remains positive. Indias continued economic growth, rising domestic consumption, urbanisation and expansion of organised retail and food processing are expected to support demand for edible oils over the medium to long term.

Government initiatives to enhance domestic oilseed and oil palm production are expected to contribute towards greater domestic availability over the medium to long term. However, imports are likely to remain an important source of edible oil supply in the foreseeable future.

The industry will continue to be influenced by international commodity price movements, foreign exchange fluctuations, climatic conditions, geopolitical developments and changes in government policies relating to imports and duties.

With its established brands, diversified product portfolio, modern manufacturing facilities and strong quality standards, Ajanta Soya Limited remains well positioned to capitalise on emerging opportunities. The Company will continue to focus on operational excellence, prudent procurement, cost optimisation, product quality and customer satisfaction while creating sustainable long-term value for all its stakeholders.

ASL achieved a turnover of Rs. 1,30,767.05 lakhs in FY 2025 26, with oil price fluctuations playing a key role. The company continued expanding its presence across digital and modern trade platforms, gaining momentum.

ASL remains committed to providing safe, affordable food products and contributing to a sustainable, resilient food ecosystem in India.

INDIAN ECONOMIC OVERVIEW

The Indian economy continued to demonstrate resilience during FY 2025-26 despite global economic uncertainties, geopolitical tensions and volatility in commodity markets. Supported by strong domestic demand, sustained public infrastructure investment and growth in the manufacturing and services sectors, India remained one of the fastest-growing major economies.

According to the Ministry of Statistics and Programme Implementation (MoSPI), Indias real GDP grew by 7.7% during FY 2025-26, reflecting broad-based economic growth across key sectors.

Inflation remained under control during the year, supported by prudent monetary policies and easing supply-side pressures. Continued government focus on infrastructure development, digitalisation, manufacturing and improving the business environment further supported the countrys economic fundamentals

The International Monetary Fund (IMF) and the Asian Development Bank (ADB) have also highlighted Indias strong growth prospects, supported by robust domestic consumption, increasing investment and ongoing structural reforms. Rising urbanisation, improving disposable incomes and growing consumer confidence continue to support demand across various sectors, including the FMCG and edible oil industry.

Looking ahead, Indias favourable demographics, continued policy reforms, infrastructure development and increasing investment in manufacturing are expected to create long-term growth opportunities for the edible oil industry.

Against this backdrop, Ajanta Soya Limited remains well positioned to benefit from the growing demand for quality edible oil products through its established brands, efficient manufacturing capabilities and continued focus on operational excellence.

GLOBAL ECONOMY OVERVIEW

The global economy witnessed moderate growth during FY 2025-26 despite continuing geopolitical tensions, trade policy uncertainties and volatility in commodity prices. Inflationary pressures eased in several major economies; however, global growth remained uneven due to slower economic activity in advanced economies and ongoing geopolitical developments.

According to the International Monetary Fund (IMF), global economic growth remained resilient, supported by easing inflation, improving labour markets and gradual recovery in international trade. However, geopolitical conflicts, supply chain disruptions and policy uncertainties continued to pose risks to global economic stability.

The edible oil industry remained influenced by fluctuations in the production of palm, soybean and sunflower oils, weather conditions in major producing countries, biodiesel policies and changes in international trade dynamics. These factors continued to impact global edible oil prices and procurement costs during the year.

Despite these challenges, long-term demand for edible oils remains supported by population growth, rising food consumption and expanding food processing industries, particularly in emerging economies. The Company continues to closely monitor global developments and adopts prudent procurement and inventory management practices to mitigate the impact of international market volatility.

Your Companys performance for the year 2025-26 may be viewed in the context of the above mentioned economic/market environment.

OPPORTUNITIES AND THREATS

Opportunities

1. Growing Demand for Branded Edible Oils

Rising disposable incomes, increasing urbanisation and changing consumer lifestyles continue to drive demand for branded and packaged edible oils. Growing awareness regarding food quality and safety is encouraging consumers to shift towards organised and trusted brands, creating long-term growth opportunities for the Company.

2. Health-Conscious Consumer Preferences

Consumers are increasingly adopting healthier dietary habits, resulting in higher demand for quality and value-added edible oils. This evolving consumption pattern provides opportunities for the Company to strengthen its product portfolio and cater to changing market preferences.

3. Government Support and Domestic Oilseed Production

The Governments continued emphasis on strengthening domestic production of oilseeds and oil palm through initiatives such as the National Mission on Edible Oils Oil Palm (NMEO-OP) and the National Mission on Edible Oils Oilseeds (NMEO-Oilseeds) is expected to support the development of the domestic edible oil value chain, improve productivity and contribute to greater long-term availability of domestically produced edible oils.

4. Expanding Distribution and Digital Reach

The growth of organised retail, modern trade and digital commerce provides opportunities to expand market reach and improve customer accessibility. Continuous improvement in logistics and distribution infrastructure is also expected to support the long-term growth of the organised edible oil industry.

Threats

1. Volatility in Raw Material Prices

The edible oil industry remains susceptible to fluctuations in the prices of palm oil, soybean oil, sunflower oil and other edible oils due to global demand-supply imbalances, weather conditions, geopolitical developments and freight costs. Such volatility may impact procurement costs and operating margins.

2. Import Dependence and Policy Changes

India continues to rely significantly on imported edible oils to meet domestic demand. Consequently, changes in import duties, trade regulations, Government policies and global supply chain disruptions may affect raw material availability and pricing.

3. Intense Market Competition

The industry continues to witness strong competition from organised and unorganised players. Continuous product innovation, competitive pricing, brand building and efficient distribution remain critical for sustaining market share and profitability.

4. Economic and Geopolitical Uncertainties

Global geopolitical developments, foreign exchange fluctuations and changing international trade policies continue to influence commodity markets and business sentiment. These external factors may affect the overall operating environment of the edible oil industry.

The Company continues to focus on strengthening its procurement strategy, optimising inventory management, improving operational efficiencies and maintaining stringent quality standards across its operations. It also remains committed to expanding its distribution network, enhancing customer satisfaction and leveraging its established brands and manufacturing capabilities. These strategic initiatives are expected to strengthen the Companys competitive position and support sustainable long-term growth.

RISKS AND CONCERNS

The edible oil industry operates in a dynamic business environment and is exposed to various internal and external risks arising from fluctuations in commodity prices, regulatory changes, geopolitical developments and evolving consumer preferences. The Company continuously monitors these risks and adopts appropriate mitigation measures to safeguard its business interests and ensure sustainable growth.

1. Raw Material and Supply Chain Risk

The Company depends significantly on imported edible oils and raw materials. Fluctuations in international commodity prices, adverse weather conditions in major producing countries, geopolitical tensions, export restrictions and supply chain disruptions may impact the availability and cost of raw materials, thereby affecting operating margins.

2. Regulatory and Policy Risk

The edible oil industry is influenced by Government policies relating to import duties, export regulations, Minimum Support Price (MSP) for oilseeds and other regulatory measures. Any significant change in these policies may impact procurement costs, pricing and overall profitability.

3. Foreign Exchange Risk

As a substantial portion of the Companys raw materials is imported, fluctuations in foreign exchange rates may increase procurement costs and affect financial performance. The Company continues to monitor currency movements and adopts prudent financial practices to minimise the impact of exchange rate volatility.

4. Market and Competition Risk

The industry continues to witness intense competition from organised and unorganised players. Aggressive pricing strategies, changing consumer preferences and continuous product innovation require the Company to focus on product quality, operational efficiency, brand building and customer satisfaction to maintain its competitive position.

5. Operational and Financial Risk

The Companys performance depends on efficient procurement, manufacturing operations, inventory management, working capital optimisation and effective utilisation of resources. Any disruption in operations, logistics or liquidity may have an impact on business performance.

6. Technology and Cybersecurity Risk

With increasing adoption of digital technologies across business operations, cybersecurity and information security have become important business considerations. The Company continues to strengthen its IT systems, internal controls and data security measures to safeguard business information and ensure operational continuity.

Risk Management

The Company continues to place strong emphasis on effective risk management and has established a structured and robust framework to identify, assess, monitor and mitigate key business risks on an ongoing basis. The Company continuously reviews emerging risks and undertakes appropriate measures to minimise their potential impact on its operations and profitability.

The Company has adopted prudent procurement and inventory management practices, diversified its sourcing arrangements and implemented appropriate measures to manage and hedge price fluctuations in key raw materials, with a view to mitigating their impact on profitability. It also continues to focus on improving operational efficiencies, maintaining prudent financial management practices and strengthening its internal control systems.

The Company is well equipped with multi-processing capabilities, enabling it to respond effectively to changes in raw material availability, market conditions and evolving consumer preferences. Further, comprehensive safety and quality control measures are in place to monitor the quality of raw materials and finished products at various stages of procurement, processing, storage and delivery.

The Company also closely monitors regulatory developments, market trends and consumer preferences and takes timely and appropriate measures to respond to changing business conditions. With its established brands, efficient manufacturing capabilities, experienced management team, sound corporate governance practices and robust internal control systems, the Company remains well positioned to manage business uncertainties and pursue sustainable long-term growth.

Human resource / Industrial relations

At ASL, we firmly believe that our people are our most valuable asset. The growth and success of the Company are deeply rooted in the dedication, capability, and development of our human resources. We are committed to nurturing talent and fostering a workplace culture that empowers individuals to reach their full potential.

The Company consistently strives to attract and retain top industry talent with strong expertise and relevant experience. Equal emphasis is placed on creating a positive, inclusive, and growth-oriented work environment. Our human resource initiatives are designed to build organisational capabilities, enhance technical and managerial competencies, and prepare our teams to meet future challenges.

Focused investments are being made in continuous learning and development programmes to strengthen individual and collective performance. Regular business and performance reviews help align individual contributions with strategic goals, ensuring a culture of accountability and continuous improvement.

We take pride in maintaining cordial and harmonious relations with all our employees. During the year under review, there were no instances of industrial disputes or labour-related concerns. The Company anticipates continued stability and positive employee relations in the coming year as well.

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The total number of permanent employees ofAjanta Soya Limited as on 31 March, 2026 was 121 (One Hundred Twenty-One).

Internal Control Systems and Adequacy

The Company has established adequate internal control systems commensurate with the size, nature and complexity of its business operations. These systems are designed to ensure efficient utilisation of resources, safeguarding of assets, reliability of financial reporting and compliance with applicable laws, regulations and internal policies.

The effectiveness of the internal control systems is periodically reviewed through an independent internal audit process covering key business functions, offices and manufacturing facilities. The internal auditors observations and recommendations are regularly reviewed by the Audit Committee and the Management, and necessary corrective actions are taken wherever required.

Although business risks cannot be eliminated entirely, the Company has implemented appropriate control mechanisms and risk mitigation measures to minimise their impact. The Management believes that the existing internal control systems are adequate and effective in supporting efficient business operations and protecting the interests of all stakeholders.

Product wise Performance

Presently the Company has been dealing in Vanaspati & Refined Oil. The details of the Vanaspati & Refined Oil business segment are as follows:

Product			Sales
	Current Year (2025-26)		Previous Year (2024-25)
	Quantity (MT)	Value (Rs. in Lakhs)	Quantity (MT)	Value (Rs. in Lakhs)
Vanaspati/ Refined Oils	90,070.504	1,30,767.05	94,878.292	1,32,981.12

Financial Highlights

Particulars	Current Year (2026)	Previous Year (2025)
Revenue from operations	1,30,767.05	1,32,981.12
Other Income	697.36	868.10
Profit/(Loss) before exceptional Items and Tax	1,206.79	3,631.73
Exceptional Items (Net)	0.00	0.00
Profit/(Loss) before Tax	1,206.79	3,631.73
Tax Expense	369.26	917.17
Profit/(Loss) after Tax	837.53	2,714.56
Other Comprehensive Income (Net of Tax)	75.84	99.68
Total Comprehensive Income	913.37	2,814.24
Transfer to Reserve	Nil	Nil
Reserves and surpluses	14,575.88	13,738.35
Earning per share	1.04	3.37

Company Performance

During the financial year under review, the Company recorded total income of Rs. 1,31,464.41 Lakhs as compared to Rs. 1,33,849.22 Lakhs in the previous year. The total expenses stood at Rs. 1,30,257.62 Lakhs as against Rs. 1,30,217.49 Lakhs in the previous year. The Company recorded a Profit After Tax (PAT) of Rs. 837.53 Lakhs as compared to Rs. 2,714.56 Lakhs in the previous year.

Your Directors and the management remain focused on strengthening the operational performance of the Company through optimum utilisation of manufacturing facilities, increasing plant throughput and improving overall operational efficiency.

Key Financial Ratios:

Particular	FY 2025-26	FY 2024-25	Changes (%)	Reason
Debtor Turnover Ratio	43.39	56.86	-23.69%	Not Applicable
Inventory Turnover Ratio	11.04	13.38	-17.48%	Not Applicable
Interest Coverage Ratio	4.86	14.31	-66.04%	The Interest Coverage Ratio declined during the year mainly on account of higher finance costs and lower profitability compared to the previous year.
Current Ratio	2.49	2.18	14.26%	Not Applicable
Debt Equity Ratio	0.05	0.00	100.00%	Due to Increase in Current Borrowing.
Operating Profit Margin	0.93	2.57	-63.81%	The Operating Profit Margin declined primarily due to lower operating profit.
Net Profit Margin	0.64	2.03	-68.59%	Due to Decrease in Net Profit.
Return on Net worth	0.05	0.17	-70.59%	The Return on Net Worth decreased primarily due to lower profitability during the year compared to the previous financial year.