Ashapura Minechem Ltd Management Discussions

Prepared pursuant to Regulation 34 of the SEBI (LODR) Regulations, 2015

CAUTIONARY STATEMENT

Statements in this Management Discussion & Analysis describing the Companys objectives, projections, estimates, expectations, or predictions may be forward-looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include global and Indian demand-supply conditions, finished goods prices, raw material cost and availability, changes in government regulations, tax regimes, economic developments within India and the countries in which the Company conducts business, and other factors such as litigation and labour negotiations. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

1. GLOBAL ECONOMIC OVERVIEW:

The global economy demonstrated notable resilience through Financial Year 2025-26 despite persistent headwinds from trade policy uncertainty, elevated financing costs in advanced economies, and evolving geopolitical realignments. The International Monetary Fund (IMF), in its January 2026 World Economic Outlook Update, revised global growth upward to 3.3% for 2025-26, an improvement of 0.2 percentage points relative to the October 2025 estimate, attributing the outperformance largely to stronger-than-anticipated momentum in the United States and China, as well as the tech- driven investment boom in semiconductor and AI infrastructure.

Global trade volumes stabilised after the intense volatility of the post-COVID rebalancing period, though the imposition of elevated US tariffs — including a 50% headline tariff rate applicable to several trading partners — introduced new structural disruptions to supply chains and investment patterns. The US Federal Reserve maintained a cautiously accommodative posture through FY2026, having commenced its easing cycle in late 2024, enabling improved credit conditions across emerging markets including India.

Commodity markets exhibited mixed signals during the year. Crude oil prices remained relatively stable restrained by OPEC+ supply management and demand moderation in China. Industrial metals such as aluminum, copper, and steel experienced selective demand surges driven by energy transition investments — electric vehicles (EVs), renewable energy infrastructure, and grid modernisation — providing a sustained tailwind to the upstream mineral sector. Inflation in advanced economies continued its structural downward trend, approaching target levels across most G7 nations.

Key Global Macroeconomic Indicators — FY2026

Indicator	FY2025 Actual	FY2026 Estimate
Global GDP Growth	3.2%	3.3%
Advanced Economy Growth	1.7%	1.9%
Emerging Market Growth	4.2%	4.4%
Global Trade Volume Growth	3.1%	3.4%
Crude Oil (Brent, avg. USD/bbl)	USD 80	USD 76
Global Inflation (CPI, avg.)	5.7%	4.3%

Source: IMF World Economic Outlook Update, January 2026; World Bank Global Economic Prospects, 2026.

Geopolitical vectors continued to shape mineral trade dynamics significantly. The conflict environment in Eastern Europe sustained pressure on European energy and materials supply chains, reinforcing demand for diversified mineral sourcing from stable jurisdictions. Supply chain resilience considerations accelerated friend-shoring and near-shoring trends, benefiting India as a preferred sourcing and processing destination.

2. INDIAN ECONOMIC OVERVIEW

India emerged as the worlds fastest-growing major economy in FY2025-26, reinforcing its position as a global growth engine. Real GDP expanded by 7.8% in Q1 FY26 and 8.2% in Q2 FY26, driven by robust private consumption, accelerating infrastructure investment, and a buoyant services sector. The Reserve Bank of India (RBI) revised its full-year FY26 growth forecast upward to 7.3%, reflecting sustained momentum across manufacturing, construction, and tertiary sectors. First Advance Estimates by the Union Government projected FY26 GDP growth at 7.4%, underpinned by a buoyant services sector and front-loaded capital expenditure.

Indias macro fundamentals remained resilient. Headline CPI inflation declined markedly — averaging approximately 2.8% in FY26, well within the RBIs tolerance band — supported by subdued food price dynamics and the structural benefits of GST rationalisation announced in mid-2025. The fiscal deficit continued its consolidation trajectory, and the Current Account Deficit (CAD) moderated to approximately 1.3% of GDP in Q2 FY26 from 2.2% in Q2 FY25, supported by resilient services exports and rising inward remittances (up 10.7% YoY).

Foreign Direct Investment (FDI) inflows demonstrated robust momentum, with gross FDI rising 19.4% to USD 51.8 billion in H1 FY26. The manufacturing sector, bolstered by Production-Linked Incentive (PLI) schemes and the National Industrial Corridor programme, attracted significant investments across semiconductors, electronics, chemicals, and advanced materials. Indias emergence as the worlds fourth-largest economy — on track to become the third-largest by 2027-28 — positions it as a critical demand node for industrial minerals across steel, cement, foundry, oil & gas, and advanced manufacturing sectors.

The Governments continued thrust on infrastructure — including the Gati Shakti National Master Plan, PM Awas Yojana, the National Green Hydrogen

Mission, and smart city development created sustained demand for foundry minerals, industrial binders, specialty clays, and refractory materials, all segments in which the Company commands significant domestic and export market presence.

3. INDUSTRY OVERVIEW

3.1 Global Industrial Minerals Sector

The global industrial minerals market is a cornerstone of the broader materials economy, supplying essential inputs across steel, cement, ceramics, oil & gas drilling, foundries, paints, polymers, agrichemicals, and environmental solutions. Industrial minerals encompassing bentonite, bauxite, kaolin, calcium carbonate, silica and specialty clays are non-substitutable in most applications, providing the sector with structural demand resilience across economic cycles.

Global demand for industrial minerals is experiencing a secular upcycle driven by three powerful megatrends: (a) the energy transition, which demands lightweight aluminum, advanced ceramics, and specialty mineral-based components in EV batteries, wind turbines, and solar infrastructure; (b) rapid urbanisation and infrastructure investment in Emerging Asia, Africa, and the Middle East, fuelling steel, cement, and foundry demand; and (c) food security imperatives, which drive adsorbent clay demand from edible oil refining across developing markets.

3.2 Bentonite — Global Market Dynamics

Bentonite, a clay mineral with extraordinary swelling, binding, and sealing properties, is an irreplaceable industrial material across foundry casting, oil and gas drilling, iron ore palletisation, civil engineering, agricultural applications, and environmental containment. The global bentonite market, valued at approximately USD 1.85 billion in FY2025, is projected to expand at a CAGR of 4.2% through 2030, driven by rising demand from the energy, construction, and environmental sectors.

India is the worlds second-largest producer of bentonite, with the Kutch region of Gujarat hosting the highest-quality sodium bentonite deposits globally. The Indian bentonite market, valued at approximately USD 210 million in FY2025, is forecast to reach USD 420 million by 2035. Key demand drivers include expanding foundry capacity in Indias auto and capital goods manufacturing sectors, the growing use of geosynthetic clay liners (GCLs) in environmental and infrastructure applications, and expanded ONGC drilling activity across onshore and offshore blocks.

The Company, with over 60 million tonnes of identified bentonite reserves in Kutch and a 12-14% global market share (Ashapura Group), is positioned among the worlds top five bentonite processing entities, making it a structurally critical supplier to global bentonite offtakers across more than 70 countries.

3.3 Bauxite — Global Market Dynamics

Bauxite, the primary ore for aluminium production, is witnessing robust structural demand growth underpinned by aluminiums critical role in EV lightweighting, renewable energy infrastructure, and aerospace applications. The global bauxite market was valued at approximately USD 15.9 billion in FY2025 and is projected to reach USD 16.3 billion in FY26, growing at a CAGR of 2.6% through 2033. Global bauxite production, revised to 451 million tonnes in FY2025 (BMI, November 2025), faces supply-side risks from Guineas political instability which accounted for 69% of Chinas bauxite imports in 2024 and Indonesias export restrictions.

Guinea became the worlds largest bauxite producer in 2023 (123 Mt), overtaking Australia (104 Mt). However, escalating resource nationalism including the revocation of Emirates Global Aluminiums mining licence and operational disruptions have constrained Guineas production ramp- up, creating significant pricing and sourcing risk for Chinese alumina refiners dependent on West African supply. This dislocation directly benefits diversified producers with established Guinean operations.

3.4 Kaolin & China Clay — Market Overview

The global kaolin market, valued at approximately USD 4.8 billion in FY2025, is witnessing renewed growth from paper, paint & coatings, ceramics, and specialty chemicals applications. India is one of the worlds leading kaolin-producing countries with the Company being the second-largest manufacturer of kaolin producer with production. Calcined China Clay (CCC) commands a premium over hydrous grades, with growing applications in fibreglass reinforcement, specialty rubber compounding, and construction chemicals all high-growth verticals.

3.5 Specialty Clays & Advanced Mineral Solutions

The global specialty clays market encompasses bleaching earth, geosynthetic clay liners, activated clay catalysts and adsorbent solutions — all of which represent Ashapuras value-added business segments. Bleaching earth demand is driven by edible oil refining growth in South and Southeast Asia; global demand for food-grade adsorbents is projected to grow at 5.1% CAGR through 2030. The Hydrocarbon Exploration Solutions segment — supplying drilling-grade bentonite to ONGC, OIL India, and international oil service companies — benefits from Indias upstream capex expansion under the Hydrocarbon Exploration and Licensing Policy (HELP).

4. COMPANY OVERVIEW

Ashapura Minechem Limited (AML) is incorporated in 1982 and listed on both the Bombay Stock Exchange (BSE: 527001) and the National Stock Exchange (NSE: ASHAPURMIN) — is Indias most diversified and globally integrated industrial mineral solutions provider. From its origins as a bentonite pioneer in Kutch, Gujarat, the Company has evolved into a multi-mineral group with operations across seven countries, marketing relationships spanning over 70 nations, and a product portfolio serving virtually every major industrial sector — from soaps to steel, energy to edible oils, metal to medicine, and cement to ceramics.

The Companys mission is to be the worlds most trusted and value-accretive partner for industrial mineral solutions leveraging Indias geological

endowments, Ashapuras proprietary processing expertise, and its global commercial reach to deliver superior, sustainable mineral value chains to customers worldwide.

4.1 Corporate Identity at a Glance — FY2026

Parameter	Details
Established	1982 (Incorporated); Group founded 1960
Listing	BSE (527001) & NSE (ASHAPURMIN)
Consolidated Revenue (FY25)	2,739 Crore (USD ~324 million)
Consolidated Revenue (TTM FY26)	5,237 Crore (USD ~581 million)
PAT (FY26 TTM)	416 Crore (USD ~46 million)
Market Capitalisation (FY26)	4,390 Crore (approx. USD 470 million)
Global Presence	Operations in India, Guinea (West Africa), Oman, Belgium; Offices in UAE (Dubai), China; Marketing in 70+ countries
Key Products	Bentonite (processed & specialty), Bauxite, Kaolin/CCC/GCC, Bleaching Earth, GCLs, Calcined Bauxite, Drilling Fluids
Bentonite Reserves	60+ million tonnes (Kutch, Gujarat)
Global Market Share	12-14% global bentonite market share; ~15% global bauxite export market
Promoter Holding	~48.03%

4.2 Strategic Positioning & Competitive Advantages

The Companys competitive moat rests on six foundational pillars:

- Resource Depth & Quality: Over 60 million tonnes of sodium and calcium bentonite reserves across India, supporting long-term resource availability.

- Processing Excellence: Established mining, activation, milling and value-added processing capabilities enable Ashapura to cater to diverse industrial applications and customer specifications.

- Global Commercial Infrastructure: Operations and commercial presence across key international markets, with customers in 70+ countries.

- Guinea Bauxite Platform: Established presence in Guineas bauxite sector, providing a platform for future growth in the mineral resources business.

- Diversified Product Architecture: Seven distinct business verticals covering the complete mineral value spectrum - from raw mining through processing to specialty derivatives - ensuring revenue resilience across commodity cycles.

- Long-standing Customer Relationships: Long-standing supplier relationships with ONGC (since 1987), global steel majors, edible oil refiners, foundries, and construction companies across five continents, providing embedded revenue predictability.

5. BUSINESS SEGMENTS & PERFORMANCE ANALYSIS

Ashapura s portfolio is organised across seven integrated business verticals, each addressing distinct industrial demand pools with tailored mineral and derivative solutions. During FY2026, all domestic business verticals experienced growth in both volume and revenue, while the Guinea bauxite platform delivered record quarterly export volumes, underscoring the quality of the Companys diversified operational architecture.

5.1 Industrial Functional Minerals (IFM) — Bentonite Division

The IFM division — AMLs foundational business — encompasses the full range of processed bentonite products for foundry, iron ore pelletising, civil engineering, pet litter, environmental containment, and animal feed applications. Kutch remains the exclusive source of high-quality sodium bentonite in India, and Ashapuras dominant reserve position and processing scale are irreplicable competitive advantages.

During Q4 FY2026, the bentonite segment reported revenue of 291 Crore (Q3 FY26: 231 Crore), demonstrating revenue stability and resilience. The Company continues to develop and commercialise higher value-added mineral products across its Bentonite and White Performance Materials businesses, with ongoing product development initiatives expected to support medium-term growth and profitability. The Company continued to strengthen its mineral resource base and support long-term raw material availability during FY2026.

The foundry segment — a key IFM customer segment — is witnessing strong underlying demand driven by Indias expanding auto component manufacturing, cast iron and ductile iron pipe production, and heavy engineering sectors. Export markets in Europe, Japan, and the Middle East continue to demonstrate robust demand for AMLs foundry-grade bentonite.

5.2 Hydrocarbon Exploration Solutions (HES) — Drilling Fluids Division

The HES division supplies high-performance bentonite-based drilling fluids and specialty additives to the oil and gas exploration sector globally. AML has been a preferred supplier to ONGC since 1987, a 38-year institutional relationship and also serves Oil India Limited, major international oil service companies, and offshore drilling contractors across the Middle East and Southeast Asia.

Indias upstream exploration capex is on an expanding trajectory, with ONGC and OIL India committing record budgets for deepwater and unconventional exploration under the HELP framework. New drilling blocks awarded under OALP (Open Acreage Licensing Policy) rounds are progressively entering the exploratory drilling phase, driving incremental demand for drilling-grade bentonite. International markets particularly the Gulf Cooperation Council (GCC) countries and Southeast Asian basins represent meaningful growth vectors for the HES business.

5.3 Speciality Adsorbent Solutions — Bleaching Earth Division

Ashapura Perfoclay Limited, the Companys Joint Venture, is engaged in the Adsorbent Solutions business and utilizes renewable energy sourced from a 9 MW group captive solar power plant at Kutch through an LLP in which the Company holds a 26% share. The Adsorbent Solutions division is Indias largest and one of the most technologically advanced producers of bleaching earth. Bleaching earth (activated clay) is an essential consumable in edible oil refining, used for the removal of pigments, oxidation products, and other contaminants from crude vegetable oils.

Q4 FY2026 segment revenue reached 97 Crore (Q3 FY26: 105 Crore), with the sequential moderation reflecting seasonal edible oil processing cycles. The solar-powered production infrastructure significantly differentiates APLs bleaching earth on both cost and environmental credentials - a critical consideration for European and food-safety-sensitive customers. Export demand from Southeast Asia, Africa, and the Middle East - high-growth edible oil refining geographies is expected to provide sustained volume tailwinds.

5.4 White Performance Minerals — Kaolin Division

The White Performance Minerals division produces Calcined China Clay (CCC) and Ground Calcium Carbonate (GCC) primarily from kaolin raw materials, with broad applications in paint & coatings, inks, paper, fibreglass, specialty rubber, and construction chemicals. AML is Indias second- largest kaolin producer with an installed capacity of 108,000 TPA across hydrous and calcined grades.

The optical whiteness and brightness properties of AMLs kaolin grades command premium pricing in paint and coatings applications. Domestic demand from Indias booming architectural coatings market driven by housing construction under PM Awas Yojana and growing export demand from Southeast Asian coatings manufacturers are key growth levers.

5.5 Advanced Refractory & Ceramic Materials — Calcined Bauxite Division

AMLs refractory materials portfolio, primarily calcined bauxite and associated specialty grades serves the steel, cement, glass, and aluminium industries for high-temperature applications. Through its 32.07% stake in Orient Ceratech Limited (an associate entity), AML participates in the advanced ceramics segment, which reported revenue of 98.2 Crore in Q4 FY2026 (vs 93 Crore in Q3 FY26).

The outlook for the refractories industry remains supported by Indias expanding steel sector. Indias crude steel production reached 168.4 MT in FY2026, while the National Steel Policy envisages domestic steel capacity of 300 MTPA by 2030-31. This continued expansion is expected to support demand for refractory materials used in high-temperature industrial processes. AMLs bauxite and value-added refractory materials businesses, together with its Guinea bauxite operations provide a strategic raw material advantage.

5.6 Bauxite Export Business — Guinea Operations

AMLs Guinea bauxite platform represents the Companys most strategically significant value creation initiative of the past decade. During Q1 FY2026, the Company achieved bauxite exports of 2.05 million metric tonnes, its highest quarterly export volume at that time, reflecting the continued scale-up of its Guinea operations.

Guinea has the worlds largest bauxite reserves and is among the leading global producers of bauxite. China remains a key market for Guinean bauxite, with nearly 70% of Chinas bauxite imports in 2024 sourced from Guinea. The countrys substantial resource base and continued demand from the global aluminium industry provide a supportive backdrop for AMLs Guinea bauxite operations. Additionally, iron ore beneficiation operations in Guinea began producing during FY2026, with a margin-oriented model structured around a local beneficiation arrangement.

6. FINANCIAL PERFORMANCE & RATIO ANALYSIS

The Company delivered a record financial performance in FY2026, with consolidated revenue increasing to 5,237 Crore from 2,739 Crore in FY2025, representing a robust 91% YoY growth. The sharp revenue expansion was primarily driven by the successful ramp-up of Guinea bauxite operations, where export volumes increased to approximately 8 million tonnes (vs. 3.5 million tonnes in FY25), alongside healthy growth across domestic mineral businesses.

Operating profitability also strengthened meaningfully. FY2026 EBITDA increased to 674 Crore from 445 Crore in FY2025, reflecting a 51.5% YoY growth, while the EBITDA margin stood at 12.9% (vs. 16.3 % in FY25). Although margins moderated due to lower bauxite realizations, elevated ocean freight, fuel costs and higher taxes in Guinea, the substantial increase in export volumes and improved operating leverage supported strong absolute EBITDA growth. Profit After Tax attributable to shareholders increased to 401 Crore from 296 Crore, representing 35.7% YoY growth, highlighting the Companys ability to translate volume growth into earnings despite cost headwinds.

The March quarter further reflected the Companys scale-up in operations. Q4 FY26 consolidated revenue surged to 1,969 Crore compared with 960 Crore in Q3 FY26, registering a sequential growth of approximately 105%. EBITDA improved to 211 Crore from 143 Crore in Q3 FY26, representing a 47.3% QoQ increase, while PBT before exceptional items increased to 147 Crore from 89 Crore. The improvement was primarily driven by higher Guinea dispatch volumes, partially offset by lower per-tonne profitability amid softer bauxite prices and elevated freight costs.

The balance sheet remained healthy despite ongoing expansion. Net debt stood at approximately 1,112 Crore as of March 2026 compared with 1,039 Crore a year earlier, reflecting investments towards port expansion, mining infrastructure and working capital required to support the sharp increase in export volumes. Management remains comfortable with leverage, supported by healthy operating cash flows and expects the balance sheet to remain well-positioned to fund future growth initiatives.

KEY FINANCIAL RATIOS

The Key Financial Ratios of the Company for FY 2025-2026 and FY 2024-2025, along with explanation for significant changes (change of 25% or more) are as follows:

Sr. No.	Particulars	2025-2026	2024-2025	% change
1	Debtors turnover Ratio (Days)* (Avg. Debtors/Sale)	238	185	28.89%
2	Inventory turnover Ratio (Days) (Cost of goods sold/Avg. Inventory)	142	124	14.78%
3	Interest coverage ratio** (EBIT: Profit before Exceptional Item and tax + interest on borrowing) / Interest Expenses	20.62	28.47	-27.57%
4	Current ratio *** (Current assets /Current Liability)	3.69	2.62	40.61%
5	Operating Profit Margin * (EBIT- other Income) /Net revenue from Operation	32%	20%	60%
6	Net Profit Margin * (Net Profit /Revenue from Operation)	36%	23%	56.52%
7	Return on Net worth (Net Profit /Average net worth )	40%	33%	21.21%
8	Debts Equity Ratio**** (Total debts /Shareholders fund)	0.12	0.25	-51%

Notes:

Exceptional items are excluded from Net Profit

* Due to increase in revenue during the financial year 25-26 compared to previous year.

** Increase in debt service cost.

*** Increase in Current Asset

**** Increase in Shareholders Equity

7. OPERATIONAL HIGHLIGHTS

During FY2026, the Company delivered strong operational performance, particularly in its Guinea bauxite operations, with exports increasing significantly year-on-year and supporting consolidated earnings. The Company continues to strengthen its resource base and backward integration through additional mining leases and is undertaking capex across its India operations to enhance capacity and increase value-added product offerings. The Company is further developing new applications and products, including Bleaching Earth, polymer processing and bauxite derivatives. Its operations are supported by established quality and environmental management systems and applicable food safety certifications.

8. OPPORTUNITIES & THREATS

The Company operates across multiple structural growth themes expected to support demand through FY2030 and beyond. The global energy transition is expected to drive long-term demand for aluminium and related minerals, supporting the Companys Guinea bauxite operations. In India, continued infrastructure development, manufacturing expansion and rising steel production are expected to support demand for bentonite, bauxite and other industrial minerals. Supply-chain diversification among global aluminium producers also presents opportunities for reliable bauxite suppliers. At the same time, the Companys focus on value-added products such as bleaching earth, polymer processing and advanced ceramic applications provides scope to improve product mix and margins. Growing food-safety standards and demand for high-performance, certified mineral solutions further support opportunities in the edible oil and specialty industrial minerals markets.

At the same time, the Company remains exposed to fluctuations in commodity prices, input and logistics costs, foreign exchange movements, regulatory changes and market demand, along with operational and supply-chain risks associated with its expanding international operations.

10. RISKS & CONCERNS

Ashapura operates in a dynamic global environment characterised by commodity price volatility, geopolitical complexity, regulatory evolution, and competitive intensity. The Company maintains a structured enterprise risk framework — reviewed quarterly by the Audit Committee — to identify, quantify, and mitigate material risks. The principal risk categories and the Companys mitigation posture are summarised below.

Risk Category	Risk Description	Mitigation Strategy
Commodity Price Risk	Bauxite and bentonite prices subject to global supply- demand cycles, Chinese demand patterns, and competing exporter actions.	Diversified customer base across 70+ countries; longterm offtake contracts for bauxite; product mix tilted to specialty, lower-cyclicality grades.
Geopolitical & Country Risk	Guinea operations exposed to West African political instability, resource nationalism, and government policy reversals as evidenced by EGA licence revocation.	China Railway partnership provides operational and political resilience; contractual structures with strong dispute resolution mechanisms; ongoing diversification of African assets.
Regulatory & Environmental Risk	Mining operations subject to environmental clearances, MMDR Act changes, and state-level mining regulations. Tightening global sustainability disclosure standards.	Proactive compliance, BRSR reporting, renewable energy integration; constructive engagement with mining regulators; ISO 14001 certified operations.
Currency & Forex Risk	Revenue mix heavily USD-denominated (export- oriented), while costs are primarily INR. USD/INR movements material to reported margins.	Natural hedge from USD revenues against USD-linked raw material procurement costs; selective forward contracts for near-term exposures.
Customer Concentration Risk	Chinese alumina refining sector is a significant bauxite customer; any structural demand softening from China could materially impact volumes.	Expanding customer diversity into Japanese, Korean, Southeast Asian, and Gulf aluminium producers; developing India domestic bauxite sales pipeline.
Competition Risk	Global bentonite market includes large multinationals (IMERYS, Clariant, Tolsa). Bauxite market faces competition from Australian and Brazilian producers.	AMLs cost leadership from captive Indian mines, quality differentiation via specialty grades, and customer stickiness from long-term relationships provide durable competitive advantages.
Working Capital Risk	Export-heavy business entails extended receivable cycles and inventory holding periods, particularly for Guinea bauxite shipments.	Bank of Baroda and Bank of India credit facilities; structured trade finance for export receivables; improving collection efficiency.
Logistics & Supply Chain Risk	Dependence on port infrastructure, shipping vessel availability, and international logistics for Guinea bauxite exports.	China Railway partnership manages Guinea logistics; diversified shipping relationships; contingency planning for port disruptions.

11. INTERNAL CONTROLS & RISK MANAGEMENT

The Company has established a comprehensive internal control framework commensurate with the nature, size and complexity of its operations, covering financial and operational controls, safeguarding of assets, statutory and regulatory compliance, risk management and reliability of financial information. The internal audit function undertakes periodic reviews of business operations and reports its findings, along with management responses and action taken to the Audit Committee. The Audit Committee provides oversight of internal controls, financial reporting, statutory audit, related party transactions and compliance matters.

The Company continues to strengthen its systems including controls relating to access, data security and business processes and maintains a structured compliance framework covering applicable corporate tax, foreign exchange, environmental and mining regulations. The Statutory Auditors, M/s. PARK & Company, have issued an unmodified opinion on the standalone and consolidated financial statements for FY2025-26.

12. HUMAN RESOURCES

Ashapuras human capital is its most fundamental competitive asset — the institutional knowledge, technical expertise, and commercial relationships embedded in its workforce underpin the Companys global mineral leadership. As of March 2026, Ashapura Minechem Limited employed approximately 349 personnel across various locations in India.

Ashapura focuses on attracting, developing, and retaining skilled and committed talent. The Company promotes a culture of continuous learning, collaboration, accountability and performance, enabling employees to enhance their capabilities and contribute meaningfully to the organisation.

The Company seeks to build a future-ready workforce by providing opportunities for professional growth, knowledge sharing and leadership development. This approach supports employee engagement while strengthening the capabilities required to drive sustainable business growth and long-term success.

13. SUSTAINABILITY & ESG FRAMEWORK

The Company acknowledges its responsibility as a large-scale mineral extractor and global exporter to operate with highest standards of environmental stewardship, social accountability, and governance integrity. The Companys Business Responsibility and Sustainability Report (BRSR) — filed in compliance with SEBIs mandatory BRSR framework for listed companies — provides detailed disclosure across the nine key principles of the National Guidelines on Responsible Business Conduct (NGRBC).

13.1 Environmental Stewardship

Ashapura remains committed to responsible environmental management through renewable energy adoption, progressive mine rehabilitation, rainwater harvesting and water recycling, waste reuse, and effective emissions and dust monitoring across its operations, thereby reducing its environmental footprint and supporting sustainable resource management.

13.2 Social Responsibility

Corporate Social Responsibility (CSR) programmes under Section 135 of the Companies Act 2013 focus on education, healthcare, and livelihood improvement majorly in the Kutch district and surrounding mining-affected communities. Key initiatives include primary school support, rural health camps, skill development for local youth, and infrastructure development in Bhuj and surrounding talukas. Ashapuras long-standing presence in Kutch — spanning over four decades — has established meaningful community goodwill and a social license to operate that is integral to the Companys business continuity.

13.3 Governance Standards

Ashapuras corporate governance framework adheres to the highest standards mandated by SEBI LODR Regulations, the Companies Act 2013, and Secretarial Standards. Key governance highlights of FY2026 include: Independent director refreshment; appointment of Shri Virendra Bhatt as Secretarial Auditor for five years (FY2026-FY2030); ratification of M/s. S. S. Puranik & Associates as Cost Auditor; and timely and comprehensive investor communications including quarterly investor communiques/planned investor calls/meets.

13.4 BRSR Alignment

The Companys FY2026 BRSR report addresses all nine NGRBC principles, covering disclosures on ethical business conduct, stakeholder engagement, human rights policies, environmental impact, and responsible supply chain practices. Key ESG metrics - energy consumption, water usage, GHG emissions, CSR expenditure and gender diversity are quantitatively disclosed and independently reviewed, meeting the standards expected of a listed industrial company in SEBIs top 1,000 by market capitalisation.

14. OUTLOOK

The Company enters its 45^th year of operations, its strategic positioning has never been stronger or more globally relevant. The convergence of multiple secular demand tailwinds - the green energy transition, Indias infrastructure super-cycle, global supply chain diversification and food safety-driven specialty mineral demand creates an exceptional environment for Ashapura to deliver sustained, superior value creation for all stakeholders.

14.1 Guinea Bauxite — Volume & Value Expansion

The Guinea platform is expected to sustain and progressively grow its export volumes through FY2027-28, underpinned by the China Railway operational partnership, committed alumina refinery offtake relationships and Ashapuras established logistics corridor. The medium-term target is to further scale Guinea bauxite exports, supporting continued growth and strengthening the Ashapuras international operations and revenue mix. The iron ore beneficiation operation is expected to progressively ramp up, adding a high-margin second commodity stream from Guinea.

14.2 Domestic India — Multi-Vertical Growth

All domestic business verticals are expected to deliver organic revenue growth in FY2027. The specialty adsorbents division operating at high-capacity utilisation with solar cost advantages is targeting export market penetration in Europe and the Gulf.

14.3 Value-Added Products — Margin Accretion

The Companys strategic priority for FY2027-28 is to systematically increase the revenue contribution from specialty and value-added mineral products, including food-grade bleaching earth, high-purity calcined kaolin, advanced ceramic inputs and specialty bentonite grades, thereby strengthening the mix towards higher-value and differentiated products.

14.4 Sustainability as a Competitive Differentiator

As global customers particularly in Europe, Japan and North America embed ESG criteria into supplier qualification and procurement decisions, Ashapuras renewable energy-integrated, environmentally compliant mineral platform becomes a commercial asset. AML will continue to invest in decarbonising its production footprint, enhancing traceability and provenance documentation for global customers, and expanding BRSR and sustainability disclosures to meet evolving international reporting standards including ISSB IFRS S1/S2 frameworks.

The Board of Directors and Management are confident that the Companys unique combination of geological assets, global operational footprint, proven commercial relationships and deep institutional expertise accumulated over 45 years position it to deliver FY2027 revenues comfortably ahead of FY2026 levels, with expanding operating profitability, continued deleveraging and strengthening return ratios. Ashapura enters FY2027 as a structurally more resilient, globally diversified and strategically better-positioned enterprise than at any point in its history.

15. GLOSSARY OF KEY TERMS

Abbreviation	Full Form / Description
AML	Ashapura Minechem Limited
BRSR	Business Responsibility and Sustainability Report
CCC	Calcined China Clay
EBITDA	Earnings Before Interest, Tax, Depreciation and Amortisation
FY / FY2026	Financial Year ending 31st March 2026
GCC	Ground Calcium Carbonate
GCL	Geosynthetic Clay Liner
GVA	Gross Value Added
HES	Hydrocarbon Exploration Solutions
IFM	Industrial Functional Minerals
LODR	Listing Obligations and Disclosure Requirements (SEBI Regulations, 2015)
MMDR	Mines and Minerals (Development and Regulation) Act
MMT	Million Metric Tonnes
NGRBC	National Guidelines on Responsible Business Conduct
ONGC	Oil and Natural Gas Corporation Limited
PAT	Profit After Tax
PLI	Production-Linked Incentive Scheme
TTM	Trailing Twelve Months

16. PRINCIPAL DATA SOURCES & REFERENCES

The following sources have informed the quantitative and qualitative assertions within this Management Discussion & Analysis:

- IMF World Economic Outlook Update, January 2026; IMF Article IV India Consultation Report, November 2025

- World Bank Global Economic Prospects 2026; South Asia Economic Update 2026

- BMI (Fitch Solutions) — Global Bauxite Mining Outlook, November 2025

- Grand View Research — Global Bauxite Market Report 2026-2033

- Fortune Business Insights — Bauxite Market Size, Share & Growth Forecast 2026-2034

- Ashapura Minechem Ltd — Q1 FY2026 Results Press Release (August 12, 2025; BSE Filing)

- Ashapura Minechem Ltd — Q3 FY2026 Results; Alcircle.com, February 2026

- Ashapura Minechem Ltd — Annual Report FY2024-25 (44th AGM Notice, September 24, 2025)

- Screener.in — Ashapura Minechem Consolidated Financials

- Tijori Finance — Ashapura Minechem Financial Data (as of September 2025)

- Pitchbook — Ashapura Minechem Company Profile (as of September 2025)

- Government of India, Press Information Bureau — GDP Advance Estimates & Economic Data, 2025-26

- Reserve Bank of India — Annual Report and Monetary Policy Statements FY2025-26

- Ministry of Mines, Government of India — Mineral Production Statistics 2025-26

- MiningWeekly.com — Global Bauxite Production Outlook, November 2025

- Portersfiveforce.com / MatrixBCG.com — Ashapura Minechem Competitive Analysis, 2025

- ZenNivesh Substack — Ashapura Minechem Detailed Research, December 2025

- Ashapura Minechem Group Website — www.ashapura.com;www.bentonite.ashapura.com

This Management Discussion & Analysis has been prepared by the Management of Ashapura Minechem Limited based on the best available information and data as of the date of this Annual Report. It should be read in conjunction with the Audited Financial Statements, Directors Report, Corporate Governance Report and Business Responsibility & Sustainability Report forming part of the FY2026 Annual Report.