Arunjyoti Bio Ventures Ltd Management Discussions

INDUSTRY STRUCTURE, DEVELOPMENTS AND PERFORMANCE:

Arunjyoti Bio Ventures Limited (ABVL) is a BSE-listed beverage co-packing and packaging company engaged in providing end-to-end manufacturing, processing, filling and packaging solutions for the beverage industry. The Company caters to reputed consumer brands in the packaged drinking water and fruit-based beverage segments.

The Indian beverage industry continues to experience growth driven by rising consumer demand for packaged beverages, increasing health consciousness, urbanization and growing preference for quality-assured products. The contract manufacturing and co-packing segment has emerged as a key enabler for leading beverage brands to expand their market presence efficiently.

The Company operates two modern manufacturing facilities located at Kallem, Jangaon, Telangana and Annadevarapeta, Kovvur, Andhra Pradesh. Both facilities are FSSAI licensed and BIS compliant. The Company operates high-capacity production lines comprising water bottling lines capable of producing 150 bottles per minute and juice packaging lines with a capacity of 180 containers per minute.

During the year, the Company continued to undertake beverage processing and co-packing operations for leading brands, including non-carbonated water and juice products for Tata Consumer Products Limited. The Company also commissioned a new Jelly Pouch Production Line with a capacity of 160 containers per minute at its Jangaon facility, enhancing its production capabilities and strengthening its position in the beverage packaging industry.

The Company reported total income of Rs. 2,787.24 lakhs during FY 2025-26 as compared to Rs. 2,816.54 lakhs during FY 2024-25. Profitability during the year was impacted by higher operating costs, employee expenses and exceptional items recognized during the year.

Opportunities and Threats:

Opportunities

Growing demand for packaged drinking water, fruit juices and ready-to-consume beverages.

Increasing outsourcing of manufacturing and packaging activities by leading FMCG and beverage companies.

Expansion of production capacities and product diversification.

Rising consumer preference for hygienically packed beverages.

Long-term growth prospects in the Indian food and beverage sector.

Threats

Intense competition in the contract manufacturing and beverage packaging industry.

Fluctuations in raw material and packaging material costs.

Regulatory and compliance requirements relating to food safety and quality standards.

Dependence on key customers and contract manufacturing arrangements.

Economic uncertainties and inflationary pressures affecting operating margins.

SEGMENT WISE OR PRODUCT-WISE PERFORMANCE:

During the year under review, the Company achieved a total income of Rs. 2,787.24 lakhs and incurred a net loss of Rs. 453.61 lakhs as compared to a total income of Rs. 2,816.54 lakhs and incurred a net loss of Rs. 27.62 lakhs in the previous financial year.

The Company does not have any geographical segment.

OUTLOOK:

The outlook for the Indian beverage industry remains positive, supported by increasing consumer demand, expanding distribution networks and growing preference for branded packaged beverages. The Company is focused on strengthening customer relationships, improving operational efficiencies, enhancing capacity utilization and expanding its product offerings.

The newly commissioned Jelly Pouch Production Line and existing high-capacity beverage packaging infrastructure are expected to support future growth. Management remains committed to improving profitability and generating long-term value for stakeholders.

RISKS AND CONCERNS:

The Company is exposed to various business risks including customer concentration risk, raw material price fluctuations, operational risks, regulatory compliance risks and liquidity risks. Changes in consumer preferences, inflationary pressures, supply chain disruptions and competitive market conditions may impact business performance.

The Company continuously monitors these risks and adopts suitable risk mitigation measures through operational controls, compliance mechanisms and periodic management reviews.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The companys internal control/supervisory system is established to ensure that the board and management are able to achieve their business objectives in a prudent manner, safeguarding the interest of companys shareholders and other stakeholders whilst minimizing the key risk such as fraud, misleading financial statements, breach of legal and contractual obligations, unauthorized business activities.

The Company has adequate internal financial controls commensurate with the size and nature of its business. Internal control systems are periodically reviewed to ensure effective monitoring of operations, safeguarding of assets, accuracy of financial reporting and compliance with applicable laws and regulations.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

Financial and operational performance forms part of the Annual Report and is presented elsewhere in the report.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED:

There are no material developments in the Human Resources area. The Industrial relations have been considered to be satisfactory. The Company constantly reviews the manpower requirements and effective steps are being taken to meet the requirements.

The Company follows a strategy of attracting and retaining the best talent and keeping employees engaged, motivated and innovative. The Company continues to have cordial relations with its employees and provides personnel development opportunities for all-round exposure to them.

The number of employees on the rolls of the Company as on March 31, 2026 was 168.

Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations therefore, including:

Particulars	As at 31.03.2026	As at 31.03.2025	Change%
Debtors Turnover
Ratio (Revenue from Operations ? Avg. Trade Receivables)	7.11	8.33	-15%
Inventory Turnover
Ratio (Revenue from Operations ? Avg. Inventory)	21.67	10.35	109%
Interest Coverage Ratio ((PBT + Finance Cost) ? Finance Cost)	1.51	0.87	74%
(Current Assets ? Current Ratio Current Liabilities)	0.43	1.36	-69%
Debt-Equity Ratio (Total Debt ? Equity)	0.76	0.77	-2%
Operating Profit Margin
(%) ((PBT + Finance Cost) ? Revenue ? 100)	-11.14%	8.06%	-238%
Net Profit Margin (%) (Net Profit ? Revenue ? 100)	-16.34%	-0.99%	1550%

Inventory Turnover Ratio decreased due to absence of stock-in-trade purchases during the year and reduction in inventory levels.

Interest Coverage Ratio declined significantly owing to losses incurred during the year and lower operating profitability.

Current Ratio decreased mainly due to reduction in current assets and increase in current liabilities.

Operating Profit Margin and Net Profit Margin declined due to increased employee costs, higher operating expenses and exceptional items recognized during the year.

Details of any change in return on net worth as compared to the immediately previous financial year along with a detailed explanation thereof:

The Return on Net Worth (RONW) decreased from (1.61%) in FY 2024-25 to (14.64%) in FY 2025-26. The decline was primarily attributable to the higher net loss of Rs. 453.61 lakhs incurred during the year as compared to a net loss of Rs. 27.62 lakhs in the previous year. The increase in operating expenses, employee benefit costs and exceptional items adversely impacted the profitability and return on shareholders funds.

Disclosure of Accounting Treatment:

The Company has complied with all the requirements of Accounting Standards/Indian Accounting Standards applicable to the Company and during the year the Company has not changed any accounting policies.

NOTE:

Readers are advised to kindly note that the above discussion contains statements about risks, concerns, opportunities, etc., which are valid only at the time of making the statements. A variety of factors known/unknown, expected or otherwise, may influence the financial results. We do not expect these statements to be updated or revised to take care of any changes in the underlying presumptions.

Readers may therefore appreciate the context in which these statements are made before making use of the same.

	For and on behalf of the Board
	Arunjyoti Bio Ventures Limited
	Sd/-	Sd/-
	Nadimpalli Vishal	Pabbathi Badari
	Whole-time Director	Narayana Murthy
Place: Hyderabad	& CFO	Whole-time Director
Date: 09.07.2026	(DIN: 02745303)	(DIN: 01445523)