Aristo Bio-Tech & Lifescience Ltd Management Discussions

The discussion hereunder covers Companys performance and its business outlook for the future. This outlook is based on assessment of the current business environment and Government policies. The change in future economic and other developments are likely to cause variation in this outlook.

The Managements views on the Companys Performance and outlook are discussed below :

GLOBAL ECONOMY:

The global economic environment remained challenging during the year, marked by moderate growth, geopolitical uncertainties, evolving trade policies and changing monetary conditions. Inflationary pressures continued to ease across several economies; however, supply chain realignments, commodity price volatility and cautious investment trends impacted business sentiment. The introduction of a 10% baseline tariff by the United States on imports, along with higher country-specific tariffs including measures affecting imports from China, contributed to changes in global trade flows and sourcing strategies. The chemical industry continued to face pressure from fluctuating energy and raw material costs, uneven demand recovery and trade-related uncertainties. However, long-term growth prospects remain supported by demand from key end-user industries, including pharmaceuticals, agriculture, infrastructure and consumer goods.

According to the World Trade Organization (WTO), global merchandise trade recorded stronger-than-expected growth of approximately 4.6% in 2025, supported by robust demand for technology-related goods, including AI-related products, despite increased trade policy uncertainty and higher tariff measures. However, the outlook for global trade remains subject to risks arising from geopolitical tensions, energy price volatility and disruptions in key transportation routes. The WTO has indicated that global merchandise trade growth could moderate to around 1.4% in 2026 under a scenario of sustained energy market disruptions, before improving thereafter. These developments continue to influence the chemical industry through their impact on raw material prices, energy costs, logistics and international supply chain dynamics.

INDIAN ECONOMY:

The Indian economy continued to demonstrate resilience amid global uncertainties, supported by strong domestic demand, government-led infrastructure development and sustained growth in key sectors. According to the International Monetary Fund (IMF), India remains among the fastest-growing major economies, with GDP growth projected at around 6.5% in FY 2025-26, driven by robust consumption, investment activity and improving business confidence.

Indias manufacturing sector continues to benefit from policy initiatives such as Make in India, infrastructure expansion and supply chain diversification trends. The chemical industry is expected to play an important role in this growth trajectory, supported by increasing demand from sectors including agriculture, pharmaceuticals, automotive, construction and consumer goods. However, challenges such as fluctuations in crude oil prices, raw material costs, global trade uncertainties and currency movements remain key factors influencing the operating environment.

INDUSTRY STRUCTURE AND DEVELOPMENTS- INDIAN AGROCHEMICAL SECTOR:

The Indian agrochemical industry continues to witness steady growth, supported by increasing demand for crop protection solutions, rising agricultural productivity requirements and adoption of modern farming practices. The Indian agrochemicals market was valued at approximately USD 33.16 billion in 2023 and is projected to grow at a CAGR of 6.5% during 2024-2030. Growth in the sector is being driven by advancements in agricultural technology, including precision farming, improved crop management practices and increased adoption of innovative crop protection products.

However, the industry continues to face challenges such as raw material price fluctuations, regulatory changes, weather-related uncertainties and competitive pressures. Going forward, the sector is expected to benefit from rising food demand, technological advancements, export opportunities and the transition towards more sustainable agricultural solutions.

The Indian agrochemical sector has grown rapidly to become a top exporter globally, driven by backward integration, off-patent molecule production, and strong government support aimed at self-reliance. This expansion aligns with FICCIs projections, with major industry players heavily investing in R&D and biopesticides to meet domestic demand and supply international markets.

Government initiatives supporting agricultural productivity, farmer awareness and sustainable farming practices continue to drive the growth of the agrochemical sector. The industry is increasingly focusing on innovation through advanced formulations, biobased solutions and sustainable crop protection technologies, while Indias cost-competitive manufacturing capabilities and growing role in global supply chain diversification present significant growth opportunities.

As reported by the Indian Council of Agricultural Research (ICAR) scientists, biotic stresses like insects, diseases, and weeds destroy approximately 30% - 35% of Indias total annual crop yield. Agrochemicals are essential to combat these losses, ppaectZ crops to secure food and farmer incomes.

INDUSTRY DRIVERS:

The key factors of driving the agrochemical industry are:

• Rising Food Demand and Need for Higher Agricultural Productivity: The increasing global and domestic demand for food, driven by population growth, urbanization and changing consumption patterns, is creating the need for higher agricultural productivity. With limited availability of arable land, farmers are increasingly adopting crop protection solutions to improve yields, minimize crop losses and enhance farm profitability. Agrochemicals play a critical role in protecting crops from pests, diseases and weeds, thereby supporting food security and sustainable agricultural output.

• Growing Adoption of Modern Agricultural Practices and Technology: The Indian agriculture sector is witnessing gradual adoption of technology-driven farming practices, including precision agriculture, improved seed varieties, mechanization and data-based crop management solutions. Technologies such as satellite-based monitoring, drones and soil health analysis are enabling more efficient application of crop protection products, fertilizers and water resources. This shift towards scientific farming practices is expected to support the long-term demand for advanced agrochemical solutions.

• Government Initiatives Supporting Agricultural Development: Government initiatives aimed at improving farmer productivity, increasing rural income and promoting sustainable agriculture continue to support the growth of the agrochemical sector. Schemes focused on soil health improvement, crop insurance, irrigation development and digital agriculture are encouraging farmers to adopt better crop management practices. Initiatives such as the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) , Soil Health Card Scheme and promotion of integrated pest management practices are contributing to improved awareness and responsible use of agricultural inputs.

• Increasing Farmer Awareness and Demand for Crop Protection Solutions: Improved access to agricultural information, farmer training programmes and extension services has increased awareness regarding the benefits of scientific crop protection practices. Farmers are increasingly focusing on improving crop quality, reducing losses and achieving better economic returns, resulting in higher adoption of herbicides, insecticides, fungicides and other crop protection products.

• Export Opportunities and Indias Growing Role in Global Supply Chains: India has emerged as an important manufacturing and export hub for agrochemicals due to its cost competitiveness, strong chemical manufacturing ecosystem and availability of skilled technical resources. Global supply chain diversification initiatives and the need for alternative sourcing destinations have created opportunities for Indian manufacturers to expand their presence in international markets. Indias established capabilities in manufacturing generic agrochemical molecules further strengthen its position in the global agrochemical value chain.

• Innovation and Shift Towards Sustainable Agrochemical Solutions: The agrochemical industry is increasingly focusing on research and development of new-generation molecules, bio-based products and environmentally sustainable formulations. Growing regulatory focus on safety, residue management and environmental protection is encouraging companies to invest in innovative solutions that offer improved efficacy with lower environmental impact.

= Integrated Pest Management (IPM) and biological crop protection solutions are gaining

¦ importance as part of sustainable agricultural practices.

i • Changing Climatic Conditions and Emerging Pest Challenges: Climate change, changing weather patterns and the emergence of new pest and disease challenges are influencing agricultural productivity and increasing the need for effective crop protection solutions. Unpredictable climatic conditions can impact crop cycles and increase vulnerability to pest infestations, driving demand for advanced agrochemical products that help farmers protect yields and manage agricultural risks.

COMPANY OVERVIEW AND OUTLOOK:

Our Company was originally incorporated on March 17, 2005 as Aristo Bio-Tech and Lifescience Private Limited under the provisions of the Companies Act, 1956 with the Registrar of Companies, Maharashtra, Mumbai. Subsequently our Company was converted into Public Limited Company and name of company was changed from Aristo Bio-Tech and Lifescience Private Limited to Aristo Bio-Tech and Lifescience Limited vide fresh certificate of incorporation dated May 20, 2020 issued by the Registrar of Companies, Mumbai. Further our Company has changed the registered office from State of Maharashtra to Gujarat vide Certificate of Registration of Regional Director order for Change of State dated November 18, 2021 issued by Registrar of Companies, Ahmedabad.

Our Company is an agrochemical company engaged in the manufacturing, formulation, supply, packaging and job-work of various agrochemical products, including insecticides, herbicides, fungicides, plant growth regulators and other crop protection products for India as well as for Export. Agrochemical industries are very vast field and deals with production and distribution of pesticides and fertilizers to increase the crop yields. Agrochemicals (Crop protection products/pesticides) are designed to protect crops from insects, diseases and weeds. Currently our company has 257 products registered with CIB&RC for manufacturing and sales.

Our Company supplies its products across 21 states i.e. Assam, Andhra Pradesh, Bihar, Chhattisgarh, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Odisha, Punjab, Rajasthan, Tamil Nadu, Telangana, Uttarakhand, Uttar Pradesh, West Bengal and 19 Countries i.e. Armenia, Australia, Bangladesh, Belgium, Cambodia, China, Germany, Hong Kong, Italy, Kenya, Moldova, New Zealand, Poland, Singapore, South Africa, UAE, UK, Ukraine and Vietnam.

Our Company is manufacturing agrochemicals such as Insecticides, Herbicides, Fungicides and Plant Growth Regulators which are directly sold to our customers and is also engaged in job work as per customer requirements.

Our company has adequate production and quality control system. All formulations are strictly tested with the latest available guidelines and testing methods by our in-house Quality Control Lab personnel. High Performance Liquid Chromatography (HPLC), Ultraviolet Spectrograph (UV) and Gas Chromatography (GC) are used to ensure top quality Raw materials and formulation testing and release. Strict testing for all Packing materials like Tin, HDPE bottles, Coextruded bottles, Fluorinated HDPE bottles, Pet bottles, Labels, Mono cartons, Corrugated boxes, Laminated pouches is also done as per the Food and Agriculture Organization of the United Nations (FAO) and Bureau of Indian Standards (BIS) guidelines and testing methods. All Finished goods are re-tested and counter samples are stored separately in sample storage rooms.

OPPORTUNITIES AND THREATS:

Opportunities:

• The increasing need to enhance agricultural productivity and ensure food security continues to drive demand for crop protection products, creating long-term growth opportunities for agrochemical manufacturers in both domestic and international markets.

• Growing adoption of precision agriculture, digital farming technologies, drone-based pesticide application and data- driven crop management is expected to increase demand for advanced, efficient and specialized agrochemical formulations.

• The increasing emphasis on sustainable agriculture and environmentally responsible farming practices is driving demand for bio-based products, integrated pest management solutions and next-generation crop protection technologies, providing opportunities for product innovation and portfolio diversification.

• Government initiatives aimed at improving agricultural productivity, promoting balanced use of crop protection products, strengthening rural infrastructure and encouraging adoption of modern farming practices are expected to support the long-term growth of the agrochemical industry.

Threats:

• The agrochemical industry remains exposed to fluctuations in the prices and availability of key raw materials, many of which are import-dependent. Changes in global supply chains, freight costs and geopolitical developments may impact procurement costs and operational efficiency.

• Increasingly stringent environmental regulations, product registration requirements and evolving regulatory frameworks across domestic and international markets may result in higher compliance costs, longer approval timelines and restrictions on certain active ingredients.

• The industry faces intense competition from domestic and global manufacturers, resulting in pricing pressures, margin compression and the need for continuous investment in product innovation, quality enhancement and customer engagement.

• The agrochemical sector is inherently dependent on climatic conditions, including the timely and adequate distribution of monsoon rainfall. Unfavourable weather patterns, pest incidence variability and changing cropping patterns can adversely affect demand for crop protection products.

• Volatility in foreign exchange rates, changing international trade policies and global economic uncertainties may impact export competitiveness, import costs and overall market demand, particularly for companies with significant exposure to international markets.

Risk and Concerns:

The Company has in place a robust risk management framework to identify, evaluate, monitor, and mitigate various risks that may impact its business operations, financial performance, reputation, and strategic objectives. The framework is designed to ensure timely identification and effective management of key business risks, including strategic, operational, financial, regulatory, compliance, and cyber security risks. The Board of Directors oversees the risk management framework and periodically reviews the key risks and the measures adopted for their mitigation. The Company continuously strengthens its risk management processes and internal control systems to respond effectively to the evolving business environment and regulatory requirements, thereby safeguarding the interests of all stakeholders and supporting sustainable long-term growth.

Segment-Wise or Product-Wise Performance:

The Companys operations predominantly comprise a single reportable business segment, being agrochemical products. Accordingly, separate segment-wise information is not required to be disclosed under Ind AS 108 - Operating Segments. The Company manufactures and markets various agrochemical products, including fungicides, herbicides, weedicides, insecticides and other crop protection products.

Discussion on Financial Performance with respect to Operational Performance:

(Amount in Lakhs)

Internal Control Systems and Their Adequacy:

The Company has established a comprehensive and adequate system of internal controls that is commensurate with the size and nature of its operations. These controls are designed to ensure the safeguarding of assets against unauthorized use or disposal, the accuracy and reliability of financial reporting, and compliance with applicable regulatory requirements and company policies. The Internal Audit Reports are regularly reviewed by the Audit Committee of the Board.

Human Resources and Industrial Relations:

The Company believes that human resource is the most important assets of the organization. It is not shown in the corporate balance sheet, but influences appreciably the growth, progress, profits and the shareholders values. During the year your company continued its efforts aimed at improving the HR policies and processes to enhance its performance. The vision and mission of the company is to create culture and value system and behavioral skills to insure achievement of its short- and longterm objectives. As on March 31, 2026, the Company had total 49 full time employees. The industrial relations have remained harmonious throughout the year.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THEREFOR:

Cautionary Note:

Statements in the Management Discussion and Analysis report may be forward looking statements within the meaning of the applicable laws and regulations. Actual results may differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include among other, climatic conditions, economic conditions affecting demand, supply and price conditions in the domestic and overseas markets in which the Company operates, changes in the Government regulations, tax laws and other statutes and incidental.