Anmol India Ltd Management Discussions

Economic Overview

The global economy navigated another year of heightened uncertainty during FY 2025-26, shaped by geopolitical tensions, evolving trade policies, persistent supply chain realignments and divergent monetary policy trajectories across major economies. While inflationary pressures moderated in several advanced economies owing to easing commodity prices and tighter monetary conditions, global growth remained subdued amid rising protectionist measures and elevated policy uncertainty.

According to the International Monetary Fund (IMF) in its World Economic Outlook, April 2025, global economic growth is projected at 2.8% in 2025, lower than earlier estimates, reflecting the impact of increased trade barriers and policy uncertainties. The IMF also expects global inflation to continue its gradual decline, albeit at a slower pace than previously anticipated, while cautioning that downside risks to growth remain elevated.

Despite a challenging external environment, India continued to distinguish itself as the worlds fastest-growing major economy, underpinned by resilient domestic demand, sustained public capital expenditure, a robust services sector and increasing private investment. Government initiatives focusing on infrastructure development, manufacturing competitiveness, digital transformation and ease of doing business continued to support broad-based economic expansion.

Leading multilateral institutions have reaffirmed Indias strong macroeconomic fundamentals. The OECD projects Indias real GDP growth at approximately 6.7% in FY 2025-26, supported by strong domestic consumption, stable inflation and sustained investment, while expecting inflation to remain broadly aligned with the Reserve Bank of Indias target of around 4% over the medium term.

Indias fiscal position remained on a path of consolidation, with continued emphasis on capital expenditure, logistics infrastructure, manufacturing incentives and energy security. Investments under the National Infrastructure Pipeline, Production Linked Incentive (PLI) schemes, expansion of multimodal logistics infrastructure and digital public infrastructure continued to strengthen the countrys long-term growth prospects.

The energy sector remained central to Indias economic growth. With electricity demand continuing to rise on account of industrial expansion, urbanisation and improving standards of living, coal continued to play a pivotal role in ensuring reliable and affordable energy supply. Although the country remains committed to accelerating renewable energy capacity and achieving its long-term net-zero commitments, coal continues to account for nearly three-fourths of Indias electricity generation, underscoring its strategic importance in maintaining grid stability and supporting industrial activity.

Indias continued focus on infrastructure development, manufacturing expansion, urbanisation and energy security is expected to sustain demand for coal across key user industries including power, cement, steel, sponge iron, brick kilns and other energy-intensive sectors. These structural drivers are expected to support the long-term outlook for the coal trading industry despite short-term volatility arising from international commodity prices, freight costs and geopolitical developments.

Overall, Indias resilient macroeconomic environment, improving investment climate, stable financial system and sustained policy reforms provide a favourable foundation for long-term economic growth. These developments are expected to create significant opportunities for companies operating in the energy supply chain, including coal trading and distribution businesses such as Anmol India Limited, while reinforcing the need for operational efficiency, prudent risk management and supply chain resilience.

The global coal industry continues to play a structurally significant role in the worlds energy system, even as economies accelerate their transition towards cleaner and more sustainable energy sources. While long-term decarbonisation policies and rapid renewable energy expansion are reshaping the global energy mix, coal remains a critical fuel for electricity generation, industrial production, and energy security—particularly across emerging and developing economies.

According to the International Energy Agency (IEA), global coal demand reached an all-time high of approximately 8.8 billion tonnes in 2024, reflecting continued strong consumption in Asia despite declines in several advanced economies. Coal-fired power generation remains the dominant driver of demand, accounting for nearly two-thirds of global coal consumption. The IEA notes that coal demand growth has slowed considerably in recent years, indicating a transition from rapid expansion to a phase of stabilization.

Recent Global Trends

As per the IEA Global Energy Review 2026, global coal demand in 2025 increased marginally by around 0.4%, remaining broadly close to 2024 levels. This reflects diverging regional trends: while advanced economies continued to reduce coal consumption, certain markets—including the United States—witnessed temporary increases due to power sector dynamics and fuel switching from natural gas.

In contrast, China and India—the two largest coal-consuming nations—continued to dominate global demand patterns. China remains the single largest consumer of coal, accounting for a dominant share of global consumption, while India remains the fastest-growing major coal market in absolute terms, supported by rising electricity demand and industrial activity.

2026 Global Outlook

The IEA outlook for 2026 indicates that global coal demand is expected to remain broadly stable, with a marginal decline or near-flat trajectory, effectively maintaining consumption close to historically high levels. This reflects a global "plateau phase" rather than a structural collapse in demand.

Key regional expectations for 2026 include:

China: Coal demand is expected to recover slightly after earlier fluctuations, supported by electricity demand growth and system reliability requirements. Recent developments also indicate a rebound in coal-fired power generation due to intermittent renewable output and strong energy security focus.

India: Coal consumption is projected to grow by approximately 2-3% in 2026, driven by sustained industrial expansion, infrastructure development, and rising electricity demand.

United States: Demand is expected to stabilize around 2024 levels, influenced by energy policy adjustments and gas market conditions.

European Union: Coal demand is expected to continue its structural decline due to accelerated renewable energy penetration and climate policy commitments.

Overall, the global coal market is expected to remain in a high plateau phase through 2026, with consumption stabilizing near record levels rather than entering a sharp downward trajectory.

Supply and Trade Dynamics

Global coal production remains concentrated among a few major producers, with China, India, and Indonesia accounting for the majority of global output. Production continues to be closely aligned with domestic energy security priorities, particularly in Asia.

International coal trade continues to be influenced by shifting demand patterns, geopolitical uncertainties, and energy security considerations. Asia remains the dominant import region, with increasing intra-regional trade flows driven by industrial expansion and electricity demand growth. Recent developments show fluctuating import demand across major Asian economies depending on domestic production levels, renewable output variability, and fuel substitution between LNG and coal.

Indian Coal Industry Overview

Coal continues to be a critical pillar of Indias energy and industrial economy, accounting for the largest share of the countrys primary energy mix and serving as the dominant fuel for power generation. It also remains an essential raw material for core industries such as steel, cement, sponge iron, paper, textiles, chemicals and other energy-intensive manufacturing sectors. Supported by sustained economic growth, urbanization and infrastructure development, Indias coal demand continues to increase. During FY2024-25, domestic coal production reached a record 1,047.5 million tonnes (MT), reflecting the Governments continued focus on enhancing domestic production and strengthening energy security.

Imported coal, however, continues to play a strategically important role in Indias coal supply chain despite the steady increase in domestic production. The domestic coal sector is unable to fully meet the diverse quality and grade requirements of several industries, particularly the steel sector, which remains heavily dependent on imported metallurgical (coking) coal due to the limited availability of high-quality domestic reserves. Similarly, several industrial consumers and coastal power plants rely on imported thermal coal because of its higher calorific value, lower ash content, operational efficiency and favourable logistics. Imported coal also provides supply diversification and enables consumers to optimize fuel procurement based on prevailing international prices, freight economics and quality specifications.

During FY2024-25, Indias total coal imports stood at 243.6 MT, compared with 264.5 MT in the previous year, representing a decline of approximately 7.9% primarily on account of higher domestic coal production and the Governments continued emphasis on import substitution. Non-coking coal imports declined to 186.1 MT, while coking coal imports remained largely stable at 57.6 MT, highlighting the continued structural dependence of the domestic steel industry on imported metallurgical coal. Despite the decline in overall import volumes, imported coal continues to account for nearly one-fourth of Indias total coal consumption, underscoring its critical role in meeting demand that cannot be adequately served by domestic production alone.

Looking ahead, while domestic coal production is expected to continue growing, imported coal is expected to remain an integral component of Indias energy and industrial ecosystem. The countrys dependence on imported coking coal is likely to continue over the medium to long term, while imports of premium-quality thermal coal will remain relevant for industries requiring consistent fuel quality and efficient operations. Accordingly, imported coal is expected to continue playing a vital role in ensuring supply security, supporting industrial productivity and complementing domestic coal availability, thereby creating sustained opportunities for companies engaged in international coal sourcing, trading and integrated supply chain solutions.

Business Overview

Anmol India Limited is one of Indias leading importers and suppliers of coal, providing comprehensive sourcing, trading, logistics and supply chain solutions to customers across diverse industrial sectors. Over the years, the Company has established itself as a trusted partner in the coal value chain through its strong sourcing capabilities, extensive distribution network and customer-centric approach. Its ability to deliver quality products with operational reliability has enabled it to build long-standing relationships with customers across the country.

With operations spanning over 100 locations across India, the Company has developed a robust pan-India presence supported by an integrated supply chain network. Leveraging its expertise in international procurement and domestic distribution, Anmol India offers end-to-end solutions encompassing global sourcing, shipping, port handling, customs clearance, inland transportation, warehousing and last-mile delivery. This integrated business model enables the Company to optimize costs, improve operational efficiency, ensure timely deliveries and create greater value for its customers.

Recognizing the evolving dynamics of the commodity trading landscape, the Company has strategically transformed its operating model by strengthening its end-to-end supply chain capabilities. Significant investments have been made in enhancing critical functions including global sourcing, freight management, cargo handling, marine insurance, inventory planning, working capital management, multimodal logistics and delivery execution. These initiatives have enhanced operational agility, improved supply chain resilience and strengthened the Companys ability to effectively manage market volatility while delivering seamless services to customers.

As one of the prominent players in Indias imported coal market, Anmol India is well positioned to capitalize on the countrys continued dependence on imported coal, particularly high-grade thermal coal and metallurgical coal required by key industrial sectors. Its established global supplier network, diversified sourcing strategy and efficient logistics capabilities provide the Company with a distinct competitive advantage in meeting the evolving fuel requirements of customers while ensuring consistent quality, reliability and timely supply.

Looking ahead, the Company remains focused on strengthening its leadership position through strategic diversification across products, geographies and value-added services. By continuously enhancing its integrated supply chain platform, expanding its market reach and pursuing operational excellence, Anmol India aims to deliver sustainable growth, strengthen stakeholder value and reinforce its position as a preferred integrated commodity sourcing and supply chain partner.

Listed on both the BSE Limited and the National Stock Exchange of India Limited, Anmol India Limited remains committed to the highest standards of corporate governance, ethical business practices and responsible value creation, with a continued focus on delivering sustainable long-term returns to all stakeholders.

Strengths

• Strong presence as one of Indias leading importers and suppliers of imported coal.
• Well-established global sourcing network with reputed international coal producers and suppliers.
• Expertise in sourcing high-quality thermal and metallurgical coal to meet diverse industrial requirements.
• Integrated end-to-end supply chain covering procurement, shipping, port handling, customs clearance, inland logistics and last-mile delivery.
• Strong pan-India distribution network with operations across more than 100 locations.
• Long-standing relationships with customers across steel, cement, sponge iron, paper, chemicals, textiles and other energy-intensive industries.
• Reliable quality assurance through independent inspection agencies such as SGS, HRT and other internationally recognized agencies.
• Experienced management team with extensive expertise in international coal trading and supply chain management.
• Customer-centric business model focused on timely deliveries, consistent quality and customized supply solutions.
• Efficient procurement and logistics capabilities supported by technology-driven operations.

Opportunities

• Continued dependence of Indian industries on imported coal, particularly metallurgical coal and premium-grade thermal coal.
• Growing demand for imported coal from steel, cement, captive power plants and other energy-intensive industries due to its superior quality and higher calorific value.
• Increasing industrialization, infrastructure development and manufacturing growth expected to support long-term coal demand.

• Expansion of Indias steel production capacity, which is expected to sustain demand for imported coking coal.
• Opportunity to strengthen market share by expanding customer base across emerging industrial clusters and MSMEs.
• Growing demand for integrated sourcing and logistics solutions provides opportunities to expand value-added services.
• Increasing use of digital technologies to enhance procurement efficiency, inventory management and supply chain optimization.
• Scope to diversify into allied commodities and expand geographical presence to drive sustainable growth.
• Ability to leverage global supplier relationships to optimize sourcing, pricing and supply reliability.
• Stable long-term role of imported coal in Indias energy and industrial ecosystem despite increasing domestic coal production, owing to quality and specification requirements of key industries.

Internal Control Systems and their adequacy

The Company has established a comprehensive internal control framework commensurate with the nature, scale and complexity of its business operations. The internal control systems are designed to provide reasonable assurance regarding the effectiveness and efficiency of operations, reliability of financial reporting, safeguarding of assets, compliance with applicable laws and regulations, and adherence to the Companys policies and procedures.

The Company has well-defined policies, standard operating procedures and authority matrices governing its business processes. These controls are supported by appropriate information systems and periodic management reviews to ensure effective monitoring of key operational and financial activities. The control framework also facilitates timely identification, assessment and mitigation of business risks while promoting operational efficiency and accountability across the organization.

An independent Internal Audit function conducts risk-based audits covering key business processes, operational controls, financial controls and statutory compliance. The Internal Auditors periodically evaluate the adequacy and effectiveness of the internal control systems and submit their reports to the Audit Committee of the Board. The Audit Committee reviews the audit findings, monitors the implementation of corrective actions and provides strategic guidance for strengthening the overall control environment.

The Company also has an established process for monitoring internal financial controls over financial reporting to ensure the accuracy, completeness and reliability of financial information in accordance with the applicable accounting standards and regulatory requirements.

Based on the reviews conducted by the Internal Auditors, the Audit Committee and the management during the year, the Board is of the opinion that the Companys internal control systems and internal financial controls are adequate and operating effectively. The Company remains committed to continuously strengthening its governance framework and enhancing its internal control processes in line with evolving business requirements and regulatory expectations.

Financial Performance Overview

During FY 2025-26, the Company delivered a robust and well-rounded financial performance, reflecting sustained business momentum, disciplined execution, and the strength of its integrated coal sourcing and supply chain model. Despite operating in a highly competitive and volatile global commodity environment, the Company was able to capitalise on stable underlying demand from core industrial sectors and efficiently translate business opportunities into improved financial outcomes.

Revenue from Operations increased to ?1,416.57 Crore in FY 2025-26 from ?1,274.26 Crore in FY 2024-25, registering healthy growth driven by higher trade volumes, strong customer retention, and effective sourcing execution across key domestic and international markets. This growth underscores the Companys ability to consistently scale operations while maintaining supply reliability and service efficiency across its diversified customer base.

EBITDA improved to 28.99 Crore as compared to 25.67 Crore in the previous year, reflecting improved operational efficiency, better optimisation of procurement and logistics processes, and focused cost management initiatives. The Companys integrated business model enabled it to navigate fluctuations in global coal prices and freight costs while maintaining stable operating performance.

Profit After Tax (PAT) witnessed a significant increase to 11.31 Crore in FY 2025-26 from 6.99 Crore in FY 2024-25, representing a strong growth of over 61% year-on-year. The sharp improvement in profitability highlights enhanced operating leverage, disciplined financial management, and the Companys continued focus on value-driven growth rather than volume expansion alone.

Overall, FY 2025-26 reflects a year of strengthened financial performance, improved profitability, and resilient execution. The Companys consistent ability to grow revenues while significantly improving bottom-line performance demonstrates the effectiveness of its strategic focus on operational excellence, supply chain integration, and prudent risk management. Going forward, the Company remains well-positioned to build on this momentum by leveraging its strong market presence, sourcing capabilities, and the sustained importance of imported coal in Indias industrial ecosystem.

Weaknesses

• Business is exposed to volatility in international coal prices, freight rates, and global commodity cycles, which can impact margins.
• High dependence on working capital due to inventory holding, import cycle and receivable periods.
• Dependence on efficient logistics infrastructure, including availability of railway rakes, port congestion and inland transport connectivity.
• Limited ability to pass on sudden cost increases immediately in a highly competitive trading environment.
• Concentration of demand in key industrial sectors such as steel, cement and power, leading to exposure to sector-specific cyclicality.
• Profitability is sensitive to foreign exchange fluctuations due to import-based business operations.

Threats

• Increasing environmental regulations and stricter emission norms impacting coal consumption patterns in the long term.
• Global transition towards renewable energy sources, which may gradually reduce demand for thermal coal over time.
• Political instability, regulatory changes, or export restrictions in key coal-supplying countries affecting availability and pricing.
• Disruptions in global shipping routes, freight volatility and geopolitical tensions impacting supply chain continuity.
• Frequent policy changes in domestic coal and import regulations affecting trade flows and market dynamics.
• Slowdowns in core consuming industries such as steel, cement and power sector directly impacting demand for imported coal.
• Increased competition from domestic coal producers and other international traders putting pressure on margins.
• Uncertainty in global macroeconomic conditions affecting industrial production and overall coal demand.

Human Resources

The Company considers its employees as a key driver of its sustained growth and success. Human resource management is focused on building a skilled, motivated and performance-oriented workforce aligned with the Companys business objectives.

During the year, the Company continued to strengthen its talent base through structured recruitment, training and development initiatives aimed at enhancing functional skills, operational efficiency and compliance awareness. Employees are encouraged to upgrade their capabilities in line with evolving industry requirements and business needs.

A performance-driven culture is promoted through a transparent appraisal system linked to defined performance parameters, ensuring alignment of individual goals with organisational objectives. The Company also emphasises employee engagement, welfare and a safe working environment to support productivity and job satisfaction.

The Company maintains harmonious industrial relations across its operations and continues to focus on developing a committed workforce to support its future growth plans.

Key Financial Ratios

Particulars	FY 26	FY 25	Remarks
Debtors Turnover Ratio	19.99	19.99	The debtors turnover ratio, also known as the accounts receivable turnover ratio, is a financial metric that indicates how quickly a company collects its debts from customers. While a high DTR generally reflects efficient credit and collection processes, the decline suggests that accounts receivable are taking longer to convert into cash. This could be due to extended credit terms, delayed customer payments, or a shift in the customer base or credit policy.
Inventory Turnover Ratio	16.73	16.73	A higher turnover ratio suggests that inventory is being sold and replaced more frequently, which is generally positive. This improvement may be attributed to better demand forecasting, streamlined inventory processes, or increased sales volume.
Interest Coverage Ratio	1.64	1.64	The interest coverage ratio is a financial metric that measures the ability of companies to pay their outstanding debts. The general rule is that the higher the ratio, the better position a company has to repay its interest obligations; lower ratios point to greater financial instability.
Current Ratio	1.68	1.68	The current ratio describes the relationship between the assets and liabilities of a corporation. A greater ratio indicates that the corporation has more assets than liabilities. The downward movement reflects reduced buffer to meet short-term obligations. This change may be due to increased current liabilities, reduced current assets, or a combination of both.
Debt Equity Ratio	0.38	0.38	This reduction suggests prudent financial management and a conservative approach to leveraging, which enhances the companys financial stability and creditworthiness. A lower debt-equity ratio also reduces the burden of interest obligations, thereby improving profitability and financial flexibility.
Operating Profit Margin (%)	0.02	0.02	The drop in operating profit margin indicates that the companys operating efficiency has significantly weakened. This decline is primarily due to higher operating costs, lower sales prices, or both. It suggests the company is generating almost no operating profit from its revenues, leaving little buffer for interest, taxes, or reinvestment.
Net Profit Margin (%)	0.55	0.55	The fall in net profit margin reflects reduced overall profitability, driven by factors such as lower operating income, higher interest costs, or increased taxes. This means the company is retaining a much smaller portion of revenue as profit, signaling tighter margins and lower earnings efficiency.
Return on Net Worth%	6.47	6.47	The significant drop in Return on Net Worth indicates reduced profitability on shareholders equity. This decline is primarily due to lower net profits and possibly higher equity base without proportional earnings growth. It suggests weaker returns for investors and reduced efficiency in utilizing shareholders funds.

Cautionary Statements

This Management Discussion & Analysis report makes forward looking statements based on certain assumptions and expectations of future events over which Anmol India Limited exercises no control. Anmol India Limited cannot guarantee their accuracy nor can it warrant that the same will be realized. Actual results could differ materially from those expressed or implied. There are various macroeconomic factors which could impact the operations of Anmol India Limited.

By Order of Board of Director

For Anmol India Limited

Sd/-

Chakshu Goyal

Whole Time Director

DIN: 03126756

Sd/-

Vijay Kumar

Managing Director & CFO

DIN: 00574900

Date: 29th August, 2026

Place: Ludhiana