Astron Multigrain Ltd Management Discussions

1. Economic Overview Global Economy

The global ready-to-eat food industry continues to expand steadily on the back of structural changes in consumption patterns, rising urbanisation and the increasing participation of women in the workforce. The global ready-to-eat food market was valued at approximately USD 404.78 billion in 2024 and is estimated at USD 425.39 billion in 2025, and is projected to reach approximately USD 626.13 billion by 2032, reflecting a compound annual growth rate of about 5.68%. Growth is being driven by convenience-led consumption, longer working hours, improvements in cold-chain and packaging technology, and the rapid expansion of modern retail and quick-commerce distribution channels across geographies.

Indian Economy and Outlook for the Industry

India remains one of the fastest-growing large economies in the world, supported by resilient domestic consumption, moderating inflation and sustained government capital expenditure. The Indian ready-to-eat food market is estimated at approximately USD 1,037.15 million in 2025 and is projected to reach approximately USD 2,436.79 million by 2031, reflecting a compound annual growth rate of about 15.3%. The growth is underpinned by rising urbanisation, growing disposable incomes, changing dietary preferences, increasing adoption of Western eating habits and continued improvements in packaging and distribution.

Within this segment, the Indian instant noodles market — the segment in which your Company operates — is estimated at approximately USD 1.59 billion in 2025 and is projected to reach approximately USD 2.98 billion by 2030, reflecting a compound annual growth rate of about 13.39%. The key growth drivers for this segment include rapid urban migration, the deep penetration of quick-commerce and ten-minute delivery platforms, an increasing appetite for global flavours, premiumisation through cup and multi-serve formats, and the growing emphasis on fortification, millet-based variants and sodium reduction. Multi-serve packs, in particular, are estimated to be growing at approximately 13.51% per annum. The Governments Production Linked Incentive Scheme for the food processing sector continues to support capacity creation and brand building in the sector.

2. Business Operations and our Products

The Company is engaged in the manufacture of instant noodles. The Company manufactures noodles on a contract manufacturing basis for its institutional customer, who sells the products manufactured by the Company under its own trade name, and also manufactures noodles for its own brand sales, which are sold under the trade name "Astrons Swagy". The instant noodles of the Company are presently available in the Mast Masala (Classic) flavour. The Company is also engaged in the manufacture of papad, which is manufactured on an order basis.

The Company operates a business-to-business distribution model, selling its products to super stockists who in turn supply to wholesalers and thereafter to retailers. The majority of the Companys sales are made in the States of Gujarat, Madhya Pradesh, Maharashtra and Bihar. The Company does not presently export its products.

The manufacturing unit of the Company is situated at Plot No. 17 to 21, Near Ram Hotel, Village: Chordi, Taluka: Gondal, District: Rajkot, Gujarat, with an installed capacity of 5,110 MTPA. The Company holds a Central Licence under the Food Safety and Standards Act, 2006 and is accredited with ISO 22000:2018 (Food Safety Management System) and HACCP certifications. Pursuant to the objects of the Initial Public Offer, the Company has, during the year under review, deployed the entire amount of Rs. 4.46 Crore earmarked for capital expenditure towards the purchase of plant and machinery, which is expected to augment the installed capacity of the Company by 1,800 MTPA to 6,910 MTPA.

3. SWOT Analysis Strengths

• Experienced promoters and management team with over seven years of experience in the ready-to-eat food industry.

• Affordable pricing, making the Companys products accessible to middle and lower income households and students, supported by scale of production and automation across mixing, sheeting, steaming, frying, drying and packaging.

• A well-established trade name in "Astrons Swagy", with consistency of taste profile and innovative packaging.

• Stringent quality compliance across sourcing, processing, manufacturing, packaging and distribution, supported by an in-house laboratory and FSSAI, HACCP and ISO 22000:2018 accreditations.

• A widespread sales and distribution network operating through super stockists, covering semi-urban and rural markets across four States.

• Cordial relationship between management and labour, with a significant proportion of women employed at the manufacturing unit.

Weaknesses

• The Companys product portfolio is presently concentrated in a limited number of variants, which may limit its ability to address the full range of market demand.

• Dependence on a limited number of customers and suppliers, which may expose the Company to concentration risk.

• Concentration of raw material sourcing and of sales in a limited number of States.

Opportunities

• Expansion of the existing product portfolio into additional flavours using the existing manufacturing infrastructure.

• Rapid growth of quick-commerce and modern retail channels, offering wider reach for branded packaged food products.

• Growing consumer preference for convenience foods driven by urbanisation, rising disposable incomes and changing lifestyles.

• Government incentives available to the food processing sector, including the Production Linked Incentive Scheme.

Threats / Risks / Concerns

• Intense competition from established national and multinational brands as well as regional and unorganised players.

• Volatility in the prices of key raw materials such as wheat flour, palm oil and packaging materials, which may compress margins.

• Changes in food safety, labelling and packaging regulations requiring continuous compliance investment.

• Economic uncertainty and supply chain disruptions affecting demand and the cost of production.

4. Internal Control Systems and their Adequacy

The Company has in place a proper system of internal control which is commensurate with the size and nature of its business. The Company has an Audit Committee headed by an Independent Director, inter alia, to oversee the Companys reporting process and the disclosure of information. The internal control system is supplemented by documented policies, guidelines and procedures covering procurement, production, quality control, sales and finance, and is subject to review by the Internal Auditors, the Audit Committee and the Board of Directors.

5. Financial Position and Results of Operations

The Company has recorded robust growth and improvement in both the top line and the bottom line on a standalone basis during the year under review, as explained below:

(Rs. in Lakhs)

PARTICULARS	YEAR ENDED MARCH 31, 2026	YEAR ENDED MARCH 31, 2025
Revenue from Operations	4,840.34	3,390.58
Other Income	19.64	0.97
Total Income	4,859.98	3,391.55
Total Expenses	4,398.70	3,081.55
Profit before Tax	461.28	310.00
Tax Expense	116.28	78.02
Profit after Tax	345.00	231.98
Earnings Per Share - Basic & Diluted (Rs.)	5.51	3.71
Net Worth	2,709.15	1,053.90

6. Material Developments in Human Resources / Industrial Relations

The Company considers its employees to be its vital and most valuable asset and understands that people have been the driving force for the growth and expansion of the Company. As on March 31, 2026, there were 7 permanent employees employed by the Company, in addition to casual labour engaged at the manufacturing unit on a need basis. The Company will continue to create opportunities and ensure the recruitment of diverse candidates without compromising on meritocracy. Industrial relations during the year under review remained cordial.

7. Key Financial Ratios

The 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 therefor, are as under:

Sr. No. Ratio	Numerator / Denominator	As at March 31, 2026	As at March 31, 2025	% Change	Reason for variance
1 Debtors Turnover Ratio (in times)	Net Credit Sales / Average Trade Receivables	3.97	10.68	(62.80)	Due to the increase in trade receivables consequent upon the growth in sales, this ratio has declined.
2 Inventory Turnover Ratio (in times)	Cost of Goods Sold / Average Inventory	6.63	4.26	55.63	Due to the increase in sales and more efficient inventory management, the ratio has improved.
3 Interest Coverage Ratio (in times)	Earnings Before Interest and Taxes / Interest Expense	27.50	7.49	267.24	Due to the increase in share capital and profitability, coupled with the repayment of term loans out of the proceeds of the Initial Public Offer, the ratio has improved substantially.
4 Current Ratio (in times)	Current Assets / Current Liabilities	2.71	1.38	95.77	Due to the infusion of funds through the Initial Public Offer, the Company holds more current assets relative to its current liabilities, indicating a stronger ability to meet its short-term obligations.
5 Debt-Equity Ratio (in times)	Total Debt / Shareholders Equity	0.09	0.41	(78.01)	Due to the increase in share capital and profitability, coupled with the repayment of term loans out of the proceeds of the Initial Public Offer, the ratio has improved.
6 Return on Equity Ratio / Return on Networth (%)	Net Profit after Tax / Shareholders Equity	12.73	22.01	(42.16)	The ratio has declined as the proceeds of the Initial Public Offer were received only in December 2025 and the augmented equity base has not been deployed for a full financial year.
7 Net Profit Ratio (%)	Net Profit after Tax / Turnover	7.13	6.84	4.18	Not applicable, the variance being less than 25%.
8 Return on Capital Employed (%)	Earnings Before Interest and Taxes / Capital Employed (Tangible Net Worth + Debt + Lease Liability)	16.21	26.60	(39.08)	The ratio has declined on account of the substantial increase in capital employed following the Initial Public Offer, the proceeds of which have been deployed only in part during the year.

Note: The above ratios have been computed on the basis of the audited financial statements of the Company for the Financial Year 2025-26 and the working statement of ratio analysis placed before and taken on record by the Audit Committee. Certain of the ratios and the comparative figures disclosed in the note on ratios forming part of the audited financial statements have been computed using different components and are, to that extent, not directly comparable with those set out above.

8. Cautionary Statement

The content of this Management Discussion and Analysis may contain "forward looking statements" including, but without limitation, statements relating to the implementation of strategic initiatives and other statements relating to the Companys future business developments and economic performance. While these forward-looking statements indicate the Companys assessment and future expectations concerning the development of its business, several risks, uncertainties and other unknown factors could cause actual developments and results to differ materially from these expectations. These factors include, but are not limited to, general market, macroeconomic, governmental and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with the Company, legislative developments and other key factors that could affect the Companys business and financial performance. The Company undertakes no obligation to publicly revise any forward-looking statements to reflect future or likely events or circumstances.

Date: September 02, 2026	For and on behalf of the Board of Directors of
Place: Rajkot	ASTRON MULTIGRAIN LIMITED
Registered Office:	Sd/-
Plot No. 17 to 21, Near Ram Hotel, Village: Chordi, Taluka: Gondal, District: Rajkot, Gujarat - 360311, India	Jenish Parshottambhai Khunt
	Chairman & Managing Director
	(DIN: 08190882)