Apis India Ltd Management Discussions

1. INDUSTRY STRUCTURE AND DEVELOPMENTS

Apis India Limited operates in the agriculture and food processing industry, with a strong presence in the procurement, processing, packaging, marketing, and distribution of a diversified portfolio of honey and value-added food products. The Company has established itself as one of Indias leading honey brands and continues to strengthen its position through product innovation, quality assurance, and an expanding domestic and international footprint.

The Indian honey market is on a strong growth trajectory, driven by rising health consciousness, changing consumer preferences for healthier, natural food choices and heightened awareness of honeys nutritional, functional, and medicinal benefits.

Indias favourable agro-climatic conditions create a strong foundation for expanding beekeeping, honey production, and exports. To capitalize on this potential, the Government of India has implemented the National Beekeeping and Honey Mission (NBHM), a flagship initiative designed to drive the "Sweet Revolution." Through three Mini Missions, NBHM supports scientific beekeeping, improves productivity, strengthens infrastructure, enhances market access, and accelerates the sectors transition towards a modern, technology-enabled ecosystem. The mission was launched with a total outlay of ?500 crore and has been extended through FY 2025-26. The scheme is implemented through the National Bee Board under the overall allocation. (https://www.pib.gov.in/PressReleasePage.aspxRsPRID=2185400&reg=3&lang=2)

India exported around 1.07 lakh metric tonnes (MT) of natural honey worth USD 177.53 million in FY 2023-24. It is now the second-largest exporter of honey globally, with key destinations including the United States, UAE, Saudi Arabia, Qatar and Libya. (https://www.pib.gov.in/PressReleasePage.aspxRsPRID=2185400&reg=3&lang=2)

Given the industry landscape, and to further strengthen the Companys leadership in the space, the Company has diversified the product portfolio by introducing innovative value-added food products, including MSKH Masala Dates-Indias first Masala Dates, available in Imli (Tamarind), Achari, and Chilli Lime variants. These launches reflect evolving consumer preferences towards healthier and convenient food choices while strengthening its presence across modern trade, e-commerce, quick commerce, and traditional retail channels.

Going forward, increasing health consciousness, rising disposable incomes, expanding organised retail, supportive government initiatives, and favourable demographic trends are expected to support sustained growth of the industry. The Company remains well positioned to capitalise on these opportunities through its strong brand equity, diversified product portfolio, robust distribution network, and continued focus on innovation and quality.

2. GLOBAL ECONOMY

The global economy in 2025 witnessed moderate growth amid persistent uncertainties, including geopolitical and trade-related challenges. While economic conditions were relatively stable at the beginning of the year, the escalation of tensions in the Middle East, particularly involving Iran, disrupted global supply chains, pushed energy prices higher, and intensified inflationary pressures across economies. Concerns over the security of the Strait of Hormuz, coupled with tighter financial conditions and heightened policy uncertainty, weighed on investor sentiment and trade activity, affecting both developed and emerging markets.

According to the International Monetary Fund (IMF), global GDP growth for FY 2025-26 is estimated at approximately 2.8%-3.0%, reflecting the impact of persistent trade tensions, elevated geopolitical risks, and lower investment activity.

Looking ahead, the IMF projects global economic growth of around 3.1% in 2026 and 3.2% in 2027, supported by modest improvements in global demand and easing financial conditions. However, inflationary pressures are expected to remain elevated in the near term due to supply-side disruptions and volatile energy

prices arising from geopolitical developments. In this environment, economies are expected to focus on strengthening supply chain resilience, diversifying energy sources, enhancing domestic production capabilities, adopting targeted reforms, and implementing prudent fiscal and monetary policies to sustain long-term growth and economic stability.

Source: IMFs World Economic Outlook (April 2026)

(https://www.imf.org/en/Publications/WEO/Issues/2026/04/14/world-economic-outlook-april-2026)

INDIAN ECONOMY

Against an uncertain global economic backdrop, India continued to distinguish itself as one of the worlds fastest-growing major economies in FY 2025-26. This resilience was supported by strong domestic fundamentals, resilient consumption, and policy continuity. According to the Reserve Bank of India (RBI), Indias real GDP is estimated to have grown by 7.6% in FY 2025-26, driven by robust private consumption, sustained public investment in infrastructure, and improving business confidence.

Source: Press Information Bureau (https://www.pib.gov.in/PressReleasePage.aspxRsPRID=2206956&reg=3&lang=1)

A key pillar of Indias economic resilience during the year was the strength of domestic demand, which helped cushion the economy from external shocks arising from global trade disruptions, geopolitical tensions, and volatile commodity prices. Inflation remained largely under control for most of the year, supported by easing food prices, prudent monetary policy, and effective supply-side interventions, thereby enhancing household purchasing power and consumer confidence.

The Governments continued emphasis on structural reforms and consumption-led growth further strengthened the economic outlook. Measures such as income tax relief, rationalisation of GST rates, increased capital expenditures, and initiatives to promote manufacturing under the Make in India programme are expected to boost disposable incomes, stimulate consumer spending, and encourage private sector investment. Rural demand remained resilient, supported by favourable agricultural output, higher rural incomes, and an above-normal monsoon. Urban consumption also gained momentum, aided by improving employment conditions and the rapid expansion of modern retail formats, including quick commerce, organised retail, and e-commerce platforms.

India continued to receive positive recognition from global institutions as a key driver of global economic growth, supported by a young and expanding workforce, rising digital adoption, improving logistics infrastructure, and deeper integration into global value chains. Looking ahead, while geopolitical uncertainties, energy price volatility, and global trade disruptions remain key risks, Indias strong macroeconomic fundamentals, sound financial system, stable policy environment, and resilient domestic demand are expected to sustain its growth trajectory over the medium term.

INDIAN FMCG SECTOR

The Indian Fast-Moving Consumer Goods (FMCG) sector demonstrated resilience during FY 2025-26 despite operating in a challenging macroeconomic environment marked by geopolitical uncertainties, fluctuating commodity prices, and evolving consumer preferences. Supported by strong domestic consumption, easing inflation, and favourable government policy measures, the sector continued to maintain steady growth while adapting to evolving market dynamics.

During the year, unseasonal rainfall and erratic weather conditions, particularly during the peak summer months, affected demand for seasonal product categories. However, the sectors broad distribution network, strong supply chain capabilities, and ability to respond quickly to changing consumer needs enabled companies to effectively navigate these challenges.

The Governments continued focus on stimulating consumption through GST rationalisation, tax reforms, and rural infrastructure development contributed to consumer spending by improving affordability of essential goods and increasing disposable incomes. Inflationary pressures

moderated during the year, supported by lower food prices and prudent monetary policy, resulting in improved consumer sentiment.

Rural markets continued to outperform urban markets for a significant part of the year, driven by healthy agricultural output, above-normal monsoon rainfall, higher minimum support prices, and favourable government welfare programmes. Urban demand, particularly through traditional retail channels, remained relatively subdued during the first half of the year but witnessed gradual improvement in the second half, supported by easing inflation, favourable tax reforms, and improved consumer confidence strengths.

The FMCG industry also witnessed a significant transformation in consumer purchasing behaviour. The rapid expansion of e-commerce, quick commerce, and organised retail continued to reshape the distribution landscape, offering greater convenience, wider product availability, and faster deliveries. Digital commerce emerged as an increasingly important growth channel, particularly across urban and semi-urban markets, compelling FMCG companies to strengthen their omnichannel strategies and digital capabilities.

Looking ahead, the long-term outlook for the Indian FMCG sector remains positive. Rising disposable incomes, increasing urbanisation, favourable demographics, expanding digital penetration, and continued government spending on infrastructure and rural development are expected to drive sustained demand. While geopolitical uncertainties, energy price volatility, and commodity cost fluctuations may continue to pose near-term challenges, the sectors strong fundamentals, resilient consumer demand, and expanding distribution ecosystem are expected to support healthy and sustainable growth in the coming years.

2. OPPORTUNITIES AND THREATS

Opportunities

The Indian honey market continues to offer significant growth opportunities, driven by increasing consumer awareness of health and wellness, rising preference for natural and functional food products, and abundant availability of quality raw honey in the country. Government initiatives such as the National Beekeeping and Honey Mission (NBHM), aimed at promoting scientific beekeeping, improving productivity, and supporting agricultural diversification, and food processing are expected to further strengthen the industrys growth prospects.

Demand for Indian honey in international markets remains encouraging due to its quality and competitive pricing. The honey sector faces challenges in major producing regions like China and Argentina, creating opportunities for India to fill the supply gap, particularly in premium honey categories. The domestic consumption is steadily increasing with changing consumer lifestyles and growing demand for immunity-boosting and naturally derived products. The Companys diversified product portfolio and established export presence position it well to capitalise on these opportunities.

The organised retail food segment also presents considerable potential. Rising disposable incomes, rapid urbanisation, changing consumption patterns, and the rapid expansion of modern trade, e-commerce, and quick commerce platforms are creating new avenues for growth. The Company continues to expand its presence across these channels while introducing innovative product designs aligned with evolving consumer preferences.

During the year, the Company further strengthened its value-added product portfolio with the launch of MSKH Masala Dates, positioned as Indias first Masala Dates. The innovative product offers a unique snacking experience by combining the natural sweetness of dates with distinctive Indian flavours. Available in three distinctive variants of Achari, Imli (Tamarind) and Chilli Lime-the product caters to evolving consumer preferences for healthier, flavourful, and convenient snack options. This launch reflects the Companys continued focus on innovation, portfolio expansion, and strengthening its presence in the value-added food segment, thereby creating new avenues for domestic and international growth.

(https://apeda.gov.in/sites/default/files/2026-06/2026_January_monthly_dashboard_Honey_050326.pdf)

Threats

The business continues to face challenges arising from inflationary pressures, volatility in the prices of honey and other agricultural raw materials, rising packaging and logistics costs, and fluctuations in energy prices. These factors may adversely impact operating margins if not effectively managed. To mitigate these risks, the Company continues to strengthen procurement practices, optimise its supply chain, improve operational efficiencies, and engage with customers for appropriate price revisions wherever feasible.

The retail food business, being highly competitive and consumer-driven, requires continuous investment in product innovation, brand building, marketing, and distribution to sustain market acceptance and cater to changing taste preferences.

As the Company has a significant export business, fluctuations in foreign exchange rates, evolving global trade policies, tariff-related developments, and geopolitical uncertainties may influence international demand and profitability. The Company continues to closely monitor global market conditions, diversify its export markets, and adopt prudent risk management strategies to minimise the impact of currency and trade-related risks while leveraging emerging international opportunities.

3. OUTLOOK

The Company will continue to explore the honey market as a whole and even aim at business expansion and exploration of undiscovered areas of work.

4. THREATS RISK AND CONCERNS

The Company operates in a dynamic business environment and is exposed to various internal and external risks that may impact its operations and financial performance. The availability of raw honey, coupled with seasonal variations and supply constraints, may lead to increased procurement costs, thereby exerting pressure on operating margins. Volatility in the prices of packaging materials, fuel, logistics, and other input costs may also affect profitability.

The food and food processing industry continues to witness intense competition from organised as well as unorganised players, resulting in pricing pressures and the need for continuous product innovation, quality enhancement, and efficient supply chain management. The Company continues to strengthen its market position through superior product quality, operational efficiency, and customer-centric offerings.

Global economic uncertainties, geopolitical developments, fluctuations in foreign exchange rates, inflationary pressures, and changes in government policies, including tariff-related measures, may impact export demand, supply chains, and overall business performance. The Company continuously monitors these developments and adopts appropriate risk mitigation strategies to minimise their impact.

The Companys retail food business also requires continuous investment in product development, marketing, distribution, and consumer awareness. As the Company expands its portfolio with innovative offerings such as ready-to-cook and ready-to-eat food products, it remains focused on building brand recognition, strengthening distribution channels, and delivering products that align with evolving consumer preferences.

The Company believes that its strong brand equity, diversified product portfolio, robust distribution network, focus on quality and innovation, and expanding domestic and international presence position it well to effectively manage these risks while pursuing sustainable long-term growth.

5. RISK MANAGEMENT:

Your Company has laid down procedures to inform the Board members about the risk assessment and minimization procedures. The Company is exposed to risk from foreign exchange and price risks.

Foreign Exchange Risk

The Companys policy is to actively manage its long term foreign exchange risk within the framework laid down by the Board. A volatile dollar rate is always a threat for the business but the Company had limited such risk by taking dollar-based fund facilities from Banks.

Price Risk

There is substantial increase in Raw Material prices. But your Company is continuously monitoring the prices of various inputs and is taking requisite actions to get the optimum price.

6. INTERNAL CONTROL & THEIR ADEQUACY:

Your Company believes in formulating adequate and effective internal control system and implementing the same to ensure the protection against misuse or loss of assets and interest of the Company are safeguarded and reliability of accounting data and accuracy are ensured with proper checks and balances.

The Audit Committee meets periodically reviews the effectiveness and suggests improvement for strengthening the same. The culture of self-governance and internal control sustained through valued set of activities and consistent efforts of the Company. The Company laid sufficient certification on adherence to the policies and procedure. Good governance, sound internal control forms the habitat in this environment.

The Audit Committee of the Board of Directors, Statutory Auditors and the Business Heads are periodically appraised of the internal audit findings and corrective action taken.

7. SEGMENT WISE PERFORMANCE

Segment wise reporting is not applicable to the Company for the year 2025-26.

8. FINANCIAL OPERATION AND PERFORMANCE:

In the current year, your Company has been successfully achieved the Standalone Net Sales of ? 35,050.92 Lakh as compare to previous year ? 35,094.56 Lakh. The Companys Exports is increased to ? 29,083.49 Lakh as compare to previous year ? 16,502.13 Lakh during the year under review.

During the year, Companys profit before tax amounted to ? 3,248.62 Lakh as compared to previous year ? 2,805.23 Lakh. Earnings per share were ? 1.78 as compared to ? 1.53 for the previous year.

Table: 1: Consolidated Income Statement Summary

All figures are in ? Lacs, unless otherwise stated	FY 2025-26	FY 2024-25	Growth % (y-o-y)
Net Sales	37,209.93	34,695.73	7.24
Other operating income	1,844.72	359.22
Revenue from operations	39,054.65	35,054.96	11.41
Material Cost	23,960.55	21,905.58
% of Revenue from Operations	61.35	62.49
Employee cost	2,057.81	1,865.33
% of Revenue from Operations	5.27	5.32
Other expenses	5,935.88	5,712.72
% of Revenue from Operations	15.20	16.30
EBITDA	7,100.41	5,571.33	27.44
EBITDA Margin (%)	18.18	15.89
Depreciation & Amortization	1,168.44	1,108.06
Profit Before Tax	5,931.97	4,463.27	32.91
PBT Margin (%)	15.19	12.73
Exceptional/One-off items	477.36	0.00
Profit Before Tax after Exceptional Items	6,409.33	4,463.27	43.60
Tax Expenses	1,123.18	1,045.02
Profit After Tax	5,286.16	3,418.25	54.65
PAT Margin (%)	13.54	9.75
Earnings Per Share (?)	9.59	6.20

Table: 2: The key ratios arising out of the Companys performance compiled:

Particulars	UOM	FY 2025	FY 2024
Inventory Turnover Ratio	Times	6.25	5.57
Debtors Turnover Ratio	Times	2.28	2.21
Creditors Turnover Ratio	Times	7.98	5.82
Interest Coverage Ratio	Times	8.42	6.75
Current Ratio	Times	2.42	2.34
Debt Equity Ratio	Times	0.31	0.37
Operating Profit Margin	%	16.27	14.66
Net Profit Margin	%	6.48	7.23
Return on Net worth	%	17.63	18.46

9. STRENGTH

Core competency in the unexplored market segment and huge growth prospects in honey and honey related products marks the strength of the Companys product.

As customers grow more health-conscious, they look for alternatives to sugar, including artificial sweeteners and other natural sweeteners like maple syrup, agave nectar, and stevia. Honey becomes a preferred choice for them. Furthermore, adding honey-based goods other than typical spreads, such as energy bars, cereals, and sauces, broadens the potential market reach and attract new customer categories.

10. INDUSTRIAL RELATIONS AND HUMAN RESOURCE MANAGEMENT:

At Apis India Limited, our employees are the foundation of our continued success, and their sustained growth and long-term success. In an increasingly competitive and dynamic business environment, the Company continues to strengthen its human capital by fostering a culture of collaboration, innovation, continuous learning, and professional development. We recognise our Human Resources function as a strategic business partner, supporting the Companys growth objectives while creating an inclusive, safe, and performance-oriented workplace.

Employee Engagement

Guided by its core value of "One Family", the Company is committed to building an engaging work environment where employees feel valued, respected, and empowered. Employee engagement extends beyond traditional activities and is embedded in the Companys culture through open communication, teamwork, knowledge sharing, career development, and employee recognition.

During the year, the Company organised various employee engagement initiatives, including festival celebrations, health and wellness programmes, and other team-building activities across its locations. Regular interactions between employees and the leadership team are organised to foster open communication, strengthen collaboration, and provided opportunities for employees to share ideas and feedback. The Company also continued to support learning and development initiatives aimed at enhancing employees skills and competencies and preparing them for future leadership roles.

Performance Management

The Company maintains a structured performance management framework designed to align individual performance with organisational objectives. The performance evaluation process provides employees with regular feedback, facilitates constructive discussions on achievements and development areas, and identifies opportunities for career advancement. The process promotes a culture of accountability, continuous improvement, and merit-based growth while recognising and rewarding individual contributions.

Talent Management

Talent development and retention remain strategic priorities for the Company. We remain committed to invest in developing employee capabilities through training programmes, cross-functional exposure, and career development opportunities. Employees are encouraged to enhance their skills, take on new responsibilities, and contribute across different business functions, enabling the Company to build a future-ready workforce while providing meaningful career growth opportunities.

The Company remains committed to creating an equitable and inclusive workplace that provides equal opportunities for professional growth and development. The Company provided equal opportunities for professional excellence.

As on March 31, 2026, the Company had 612 employees on its roles. Industrial relations across all manufacturing units and offices remained cordial and harmonious throughout the year. The Company continues to maintain a strong focus on fostering a positive and inclusive work culture, employee relations, effective communication, and compliance with all applicable labour laws and statutory regulations.

11. CAUTIONARY STATEMENT:

Statement in this report describing the Companys objectives, projections, estimates and expectations may be forward looking statements within the meaning of applicable laws and regulations. Although we believe our expectations are based on reasonable assumptions, these forward-looking statements may be influenced by numerous risks and uncertainties, which could cause actual outcomes and results to differ materially from those expressed or implied. Factors that could cause actual outcomes and results to be materially different from those expressed or implied