Ceeta Industries Ltd Management Discussions

GLOBAL ECONOMY

The global economy demonstrated resilience in 2025, recording growth of 3.4%, compared to 3.3% in 2024, despite heightened trade tensions, geopolitical uncertainties and evolving policy environments across major economies. Growth during the year was influenced by the US tariff measures announced in April 2025, which, although partially reversed through subsequent trade agreements, resulted in tariff rates remaining above pre-2025 levels and contributed to elevated trade policy uncertainty. Advanced economies witnessed a marginal improvement in growth, expanding by 1.9% in 2025 as against 1.8% in 2024, supported by resilient labour markets and easing financial conditions. Emerging Market and Developing Economies (EMDEs) continued to exhibit relative resilience, recording growth of 4.4% in 2025, compared with 4.3% in the previous year, driven by robust domestic demand and sustained infrastructure investments. Global inflation continued its downward trajectory, declining to an estimated 4.1% in 2025 from 5.8% in 2024, reflecting the impact of tighter monetary policies, easing supply chain constraints and

moderating commodity prices. Source: IMF World Economic Outlook, April 2026.

OUTLOOK

The global economic outlook remains subject to uncertainty amid ongoing geopolitical tensions and their impact on energy markets, trade flows and global supply chains. In view of the challenges associated with developing a consistent set of assumptions in a rapidly evolving environment, the IMFs World Economic Outlook (April 2026) adopted a reference forecast, in lieu of the traditional baseline, based on the assumption that the war will have limited duration, intensity and scope, such that the disruptions will fade by mid-2026. Under this reference scenario, global economic growth is projected at 3.1% in 2026 and 3.2% in 2027, compared with an average growth of 3.4% during 2024-25. Global inflation is expected to increase to 4.4% in 2026 before moderating to 3.7% in 2027. While the global economy is expected to remain resilient, the outlook continues to be influenced by geopolitical developments, energy price movements,

trade-related disruptions and evolving policy measures across major economies. ource: IMF World Economic

Outlook, April 2026.

INDIAN ECONOMY

India reaffirmed its position as one of the worlds fastest-growing major economies, with real GDP growth of 7.6% in FY 2025-26, compared with 7.1% in FY 2024-25. The growth momentum was supported by robust domestic consumption, sustained investment activity and strong performance across key sectors of the economy. Reflecting the broad-based expansion in economic activity, Real GDP at Constant Prices stood at 322.58 lakh crore in FY 2025-26, as compared to 299.89 lakh crore in FY 2024-25. The manufacturing sector remained a key driver of growth, recording double-digit expansion during the year, while the secondary and tertiary sectors continued to demonstrate strong momentum. On the expenditure side, both Private Final Consumption Expenditure (PFCE) and Gross Fixed Capital Formation (GFCF) recorded growth of over 7.0%, indicating sustained household spending and continued investment momentum. Real Gross Value Added (GVA) stood at 294.40 lakh crore in FY 2025-26, against 273.36 lakh crore in FY 2024-25, registering a growth of 7.7% as compared to 7.3% in the previous year. Indias macroeconomic fundamentals remained resilient during the year, supported by policy reforms, infrastructure investments, improving financial sector health and strong domestic demand. Inflation remained moderate during most of the year, supporting consumer spending and business activity, while continued government focus on infrastructure development, manufacturing promotion, digitalisation and ease of doing business further strengthened investment sentiment and economic growth. Despite global geopolitical uncertainties, trade disruptions and commodity

price volatility, the Indian economy continued to demonstrate stability and sustained growth momentum.

Source: Second advanced estimates released by MoSPI

OUTLOOK

The outlook for the Indian economy remains positive despite continuing global uncertainties. According to the IMF, Indias economy is projected to grow by approximately 6.5% in 2026, enabling the country to remain among the fastest-growing major economies globally. The Reserve Bank of India (RBI) has also projected economic growth of 6.9% for FY 2026-27, reflecting continued resilience in domestic economic activity despite external challenges. Growth is expected to be driven by strong domestic demand, resilient private consumption, sustained infrastructure investments and continued policy support. Rising urbanisation, increasing disposable incomes, expanding manufacturing activity and continued government focus on infrastructure development, digitalisation and ease of doing business are expected to support economic growth. Increasing adoption of technology and advancements in Artificial Intelligence (AI) are also expected to enhance productivity, improve operational efficiencies and strengthen long-term growth prospects. While risks arising from geopolitical developments, global trade uncertainties, commodity price volatility, fluctuations in energy prices and supply chain disruptions continue to persist, the RBI has highlighted that elevated crude oil prices and geopolitical tensions could influence the near-term growth outlook. Nevertheless, Indias strong macroeconomic fundamentals, resilient domestic market and ongoing structural reforms are expected to support sustainable economic growth over the medium to long

term.Source: IMF World Economic Outlook, April 2026, RBI.

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Indian FMCG sector continued to demonstrate steady growth during FY 2025-26, supported by improving consumer sentiment, rising disposable incomes, increasing urbanisation and expanding retail penetration. The sector benefited from moderating inflation, favourable policy measures and growing consumer demand across both urban and rural markets. The food and beverages segment remained one of the key contributors to FMCG growth, driven by changing consumer lifestyles, increasing preference for packaged and branded products and rising demand for convenience foods. The Indian snacks industry, comprising traditional snacks, potato chips, extruded snacks, namkeens, fryums and other ready-to-eat products, continued to witness strong demand across consumer segments. Rural markets demonstrated improving consumption trends, supported by favourable agricultural conditions, increasing rural incomes and government initiatives aimed at strengthening rural infrastructure. Urban demand remained resilient, driven by premiumisation, convenience-led consumption and increasing adoption of organised retail, e-commerce and quick-commerce channels. Digital adoption continued to reshape consumer purchasing behaviour, with rising internet penetration, digital payments and improved logistics infrastructure enhancing product accessibility and market reach across the country. Product innovation, new flavour offerings, improved packaging formats and greater focus on quality and food safety also continued to drive industry growth. The Indian FMCG market was estimated at approximately US$ 289 billion in 2025 and is projected to witness significant growth over the coming years. Within the sector, the packaged snacks category continues to be one of the fastest-growing segments, supported by evolving consumer preferences and increasing demand for ready-to-eat food products. Despite challenges arising from raw material price volatility, inflationary pressures, supply chain disruptions and intense competition, the Indian FMCG and packaged

snacks industry continued to demonstrate resilience and remains well-positioned for long-term growth.

Source: IBEF, NielsenIQ, Research and Markets and industry reports.

OUTLOOK

The outlook for the Indian FMCG sector and packaged snacks industry remains positive, supported by favourable demographics, rising disposable incomes, increasing urbanisation and evolving consumer preferences. Growing demand for packaged, branded and convenience food products is expected to continue driving industry growth over the coming years. According to industry estimates, the Indian FMCG market is projected to grow from approximately US$ 289 billion in 2025 to US$ 643 billion by 2030. Within the sector, the Indian snacks market is projected to grow from approximately 48,543 crore in 2025 to 1,04,650 crore by 2034, registering a CAGR of around 8.9%, reflecting significant long-term growth potential. The packaged snacks segment is expected to benefit from increasing consumer preference for ready-to-eat products, product innovation, wider distribution networks and growing penetration of organised retail, e-commerce and quick-commerce channels. Rising brand consciousness, increasing focus on product quality, food safety and hygiene standards, along with growing demand for differentiated and value-added products are expected to create significant growth opportunities for industry participants. Government initiatives supporting food processing, manufacturing, infrastructure development and digitalisation are expected to further strengthen the industrys growth prospects. Increasing adoption of technology, automation and Artificial Intelligence (AI) across manufacturing, distribution and supply chain operations is also expected to enhance productivity, improve operational efficiencies and strengthen competitiveness across the industry. While volatility in raw material prices, inflationary pressures, supply chain disruptions and competitive intensity may continue to pose challenges, the long-term outlook for the FMCG and packaged snacks industry remains favourable supported by increasing consumption, expanding

market opportunities and sustained demand for branded snack products. Source: IBEF, Research and Markets,

NielsenIQ and industry reports.

COMPANY OVERVIEW

Founded in 1984, Ceeta Industries Limited has evolved into a diversified business enterprise with a growing presence in the FMCG sector. Over the years, the Company has strategically transformed its business portfolio and established its presence in the packaged snacks segment under its brand, "Skitos". The Company operates a manufacturing facility at Tumkur, Karnataka, equipped with modern production capabilities for manufacturing traditional snacks, potato chips, extruded snacks, fryums and a wide range of other snack products, along with fruit drinks in various flavours. In addition, the Company undertakes contract manufacturing for various customers, leveraging its manufacturing expertise and operational capabilities. The Company has steadily expanded its presence in the Indian snack food market by offering quality products at competitive price points. Its product portfolio comprises a diverse range of traditional and extruded snacks, catering to varied consumer tastes and preferences. The Company continues to strengthen its distribution network and enhance its market reach through strategic initiatives and an increasing presence across multiple sales channels. With a continued emphasis on product quality, innovation, operational efficiency and market expansion, the Company remains focused on strengthening its position in the FMCG sector and creating long-term value for its stakeholders.

Details of the Companys product portfolio are available on the Companys website, www.ceeta.com ,

under the Products section

FUTURE OUTLOOK

The Company remains optimistic about the growth prospects of the snacks industry, supported by evolving consumer preferences, increasing urbanisation and expanding market opportunities. The industry continues to offer significant growth potential, driven by product innovation, wider distribution reach and increasing market penetration. The Company remains focused on strengthening its brand presence, enhancing operational efficiencies, expanding its customer base and enriching its product portfolio. The Company continues to explore opportunities to broaden its market reach, strengthen distribution capabilities and enhance product offerings to further improve its competitive position. Continued emphasis on cost optimisation, quality enhancement and effective resource utilisation is expected to improve operational efficiency, strengthen competitiveness and support sustainable profitability. Backed by its established manufacturing capabilities, experienced management team and customer-centric approach, the Company believes it is well-positioned to capitalise on emerging opportunities and deliver sustainable growth while creating long-term value for its stakeholders.

Looking ahead, the Companys long-term operating model is anchored on the following strategic

aspirations, subject to prevailing market conditions, industry dynamics and other external factors:

1. Consistent revenue growth of approximately 5 10%;

2. Profitability-focused operations targeting EBITDA margins exceeding 10%; and

3. Sustained capital efficiency with Return on Capital Employed (RoCE) in the range of 10 15%.

The Company will continue to focus on strengthening its manufacturing capabilities, improving operational efficiencies and enhancing customer satisfaction through consistent product quality and innovation. While the operating environment may be influenced by evolving market conditions and competitive dynamics, the Company remains committed to pursuing sustainable growth opportunities and creating long-term value for all stakeholders.

SWOT ANALYSIS

Strengths	Weaknesses
uDiversified and innovative product portfolio	u Intense competition from both organised and unorganised market participants
uStrong focus on quality and food safety complianc
uTechnology and data driven operational governance	uLimited product differentiation in certain product categories and
uExperienced and committed leadership team	dependency on the availability of raw materials at competitive prices
uProducts catering to consumers across all age groups	uDependence on third-party distributors for market penetration and reach
Opportunities	Threats
uRising urbanisation, increasing disposable incomes and	uVolatility in raw material prices
growth in e-commerce	uPersistent inflationary pressures impacting input and logistics costs
uGrowing brand awareness & evolving consumer lifestyle	uSluggish or fluctuating consumer demand patterns
preferences	uIncreasing health consciousness leading to changes in dietary
uOpportunity to expand into underpenetrated markets preferences uExpansion through alternate distribution and sales channels	uRegulatory changes relating to food safety, packaging and labelling requirements
uIntroduction of new and innovative products and Continuous enhancement and diversification of the existing product portfolio

RISK MANAGEMENT AND MITIGATION

Risks and uncertainties are inherent in any business and can significantly influence performance, reputation and long-term sustainability. The Company has established a comprehensive risk management framework that is integrated with its strategic planning and decision-making processes to proactively identify, assess, monitor and mitigate business risks. The Companys risk management framework is designed to address a broad range of risks, including market volatility, raw material price fluctuations, operational disruptions, supply chain challenges, financial and liquidity risks, regulatory compliance requirements, information technology risks and reputational concerns. Periodic risk assessments are undertaken to evaluate both existing and emerging risks and to identify appropriate mitigation measures. Risk mitigation plans are developed and implemented based on the likelihood of occurrence and the potential operational, financial and strategic impact of identified risks. The Company continuously reviews its internal controls, business processes and governance practices to strengthen risk management capabilities and enhance organisational resilience. In accordance with the Companys Risk Management Policy, the Audit Committee periodically reviews the risk management framework and monitors the effectiveness of mitigation measures. Significant risks and corresponding management actions are regularly reported to the Board of Directors, enabling informed decision-making and ensuring effective oversight of the Companys risk profile.

Key Risk Areas and Mitigation Measures:

1. Economic and Market Risk: Fluctuations in macroeconomic factors such as inflation, interest rates, and consumer spending patterns can impact business growth. The Company monitors external indicators and adjusts its pricing, marketing, and cost-management strategies to remain agile in the face of economic uncertainty.

2. Raw Material and Input Cost Risk: Volatility in the cost and availability of raw materials and packaging inputs can affect margins. To mitigate this, the Company optimizes procurement processes, builds strong vendor relationships, and explores alternate sourcing options to ensure business continuity and cost stability.

3. Operational and Supply Chain Risk: Operational disruptions or inefficiencies in logistics and supply chain can result in delays or increased costs. The Company focuses on improving process reliability, maintaining buffer stocks where necessary, and reviewing key vendor contracts to ensure responsiveness to market demands.

4. Competition Risk: The Company operates in a competitive FMCG market with both organized and unorganized players. To address this, the Company maintains a focus on product quality, customer satisfaction, and efficient distribution channels. Continuous improvement in branding, pricing, and customer engagement also supports competitiveness.

5. Regulatory and Compliance Risk: Compliance with evolving regulatory frameworks is essential. The Company ensures adherence to applicable laws, including the Companies Act, SEBI Regulations, and relevant tax laws. Regular audits, legal reviews, and internal controls are in place to identify and address compliance risks proactively.

6. Technology and Cybersecurity Risk: Increasing digitalisation exposes businesses to cyber threats, data security risks and potential system disruptions. The Company continuously strengthens its information technology infrastructure through appropriate security controls, data backup mechanisms, access management protocols and periodic monitoring measures to safeguard critical business information and ensure operational continuity.

QUALITY, SAFETY AND SUSTAINABILITY

Quality, safety and sustainability remain integral to the Companys operations and business philosophy. As

a manufacturer of packaged snack products, the Company places significant emphasis on maintaining high standards of hygiene, product quality and food safety across its manufacturing and supply chain processes. During FY 2025-26, the Company continued to uphold stringent quality standards in line with applicable regulatory requirements and industry best practices. Continuous quality monitoring, process controls and adherence to food safety norms helped ensure consistency in product quality and strengthened customer confidence in the Companys products. The Company also remains committed to responsible and sustainable business practices. Efforts are focused on efficient utilisation of resources, minimisation of waste, conservation of natural resources and adoption of environmentally responsible practices wherever feasible. The Company continues to integrate sustainability considerations into its operations with the objective of reducing its environmental footprint and supporting long-term business sustainability. As the industry continues to evolve, the Company recognises the growing importance of combining quality excellence, food safety, operational efficiency and sustainability to create long-term value for customers, stakeholders and the communities it serves.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has established a robust internal control system designed to identify, assess, manage and monitor key risks, ensuring transparent and accountable operations aligned with both short-term and long-term business objectives. Adequate internal financial controls are in place to safeguard assets, prevent and detect frauds and errors and ensure the accuracy and timeliness of financial reporting. The internal control framework is periodically evaluated for its effectiveness and is considered adequate and commensurate with the size, scale and nature of the Companys operations. Quarterly internal audits are conducted across critical functions such as procurement, production, IT, supply chain, sales, marketing and finance. The findings of these audits are reviewed by the management and appropriate corrective and preventive actions are implemented wherever necessary. The Audit Committee also reviews executive summaries of internal audit reports and monitors the implementation of action plans, thereby ensuring the continued effectiveness of the Companys internal control environment and governance framework.

HUMAN RESOURCES DEVELOPMENT AND INDUSTRIAL REALTIONS

Human capital remains one of the Companys most valuable assets and a key driver of its long-term growth and sustainability. The Company remains committed to attracting, developing and retaining talented individuals across all levels of the organisation. During the year under review, focused efforts were made to enhance the overall employee experience, foster career development and maintain a safe, inclusive and engaging work environment. The Companys strategic approach to human resource management and productivity enhancement contributed to the achievement of key organisational objectives during the year. The human resource environment remained stable and positive throughout the year. As on March 31, 2026, the Company had 58 employees across various locations, compared to 58 employees as on March 31, 2025. Industrial relations continued to remain cordial throughout the year, with no instances of labour unrest or work disruptions, reflecting a harmonious and cooperative workplace environment.

FINANCIAL HIGHLIGHTS

Summary of financial performance for the year is given herein below:

Particulars	FY 2025-26	FY 2024-25
Revenue from operations	213568.85	220254.75
Other income	9546.69	13329.35
Total Income	223115.53	233584.10
Profit before Interest & Depreciation	22440.71	23920.66
Interest Expense	3813.07	4888.54
Depreciation	10671.21	10045.36
Profit before Exceptional Items	7956.43	8986.76
Exceptional Income	-	28309.64
Profit before taxation (PBT)	7956.43	37296.40
Provision for Tax (Including Deferred tax & IT of Earlier Years)	2087.13	9842.24
Profit after tax (PAT)	5869.30	27454.16
Other Comprehensive Income
Items that will reclassified to Profit and Loss (Net of Tax)	598.55	512.36
Total Comprehensive Income for the period	6467.85	27966.52

The Companys performance during FY 2025-26 remained stable despite a challenging business environment. Revenue from operations stood at 2,135.69 lakh as compared to 2,202.55 lakh in the previous year. The marginal decline in revenue was attributable to market conditions and demand dynamics across certain business segments. The Company continued to focus on operational efficiency and cost optimization initiatives, resulting in improved financial discipline. Finance costs reduced significantly during the year, reflecting efficient management of working capital and borrowings. Operating profitability remained resilient, supported by effective cost controls and process improvements. The Company reported Profit Before Tax (PBT) of 79.56 lakh and Profit After Tax (PAT) of 58.69 lakh during the year. The decline in profitability compared to the previous year was primarily attributable to the exceptional income of 283.10 lakh recognized in FY 2024-25. Despite the decline in profitability compared to the previous year, the Company continued to maintain revenue and profitability from its core business operations. The management remains focused on strengthening operational capabilities, expanding market reach, enhancing customer relationships, and improving product offerings. The Company continues to pursue sustainable growth opportunities while maintaining financial prudence and creating long-term value for its stakeholders.

Quarterly financial results can be accessed through the Companys website at https://ceeta.com

/quarterly-report .

SEGMENT WISE PERFORMANCE

The Company has two reportable operating segments such as Packaged Food Products and Other Operations.

Summary of operating segments for the year is given herein below: ( in Thousands)

Particulars	Year ended 31st March, 2026			Year ended 31st March, 2025
	Packaged Food Products	Other Operations	Total	Packaged Food Products	Other Operations	Total
Segmental Revenue	211472.97	11642.56	223115.53	219253.95	14330.15	233584.10
TOTAL REVENUE	211472.97	11642.56	223115.53	219253.95	14330.15	233584.10
Segment Result
(before interest and tax):	9815.21	(151.81)	9663.40	9223.35	(152.06)	9071.29
Less: Unallocated Corporate expenses
(net of un-allocable income)	-	-	7232.95	-	-	(21019.14)
Profit / (Loss) before Interest and Tax	-	-	2430.45	-	-	30090.43
Add: Interest Income	-	-	9339.05	-	-	12094.51
Less: Interest Expenses	-	-	3813.07	-	-	4888.54
Net Profit / (Loss) before Tax	-	-	7956.43	-	-	37296.40
OTHER INFORMATIONS:
CAPITAL EMPLOYED:
Segment Assets	241981.00	945.34	242926.34	239517.89	977.15	240495.04
Segment Liabilities	56316.62	29.85	56346.47	64720.88	29.85	64750.73
Net Segment Assets			186579.87			175744.31
Add: Unallocated Assets	-	-	93933.74	-	-	98269.45
Less: Unallocated Liabilities	-	-	492.03	-	-	514.41
Net Capital Employed	-	-	280021.58	-	-	273499.35
Capital Expenditure	20576.05	78.11	20654.16	20535.07	15.51	20550.58
Depreciation	10022.22	648.99	10671.21	9402.38	642.98	10045.36

Quarterly Segment reports can be accessed through the Companys website at https://ceeta.com/quarterly-report .

KEY FINANCIAL RATIOS

The key financial ratios of the company for the financial year under review as compared to the previous financial year are provided herein under:

Key Financial Ratios	FY 2025-26	FY 2024-25	Change (in %)	Explanations (where change is > 25%)
Debtors Turnover (in times)	64.31	92.17	(30.22)	The ratio decreased primarily due to lower revenue from operations and higher trade receivables during the year.
Inventory Turnover (in times)	4.95	5.77	(14.16)	-
Interest Coverage Ratio (in times)	3.09	8.63	(64.23)	The ratio decreased mainly due to lower profitability during the year as compared to FY 2024-25, which included exceptional income.
Current Ratio (in times)	2.18	1.55	40.70	The increase was primarily due to reclassification of a loan from non-current assets to current assets during the year.
Debt Equity Ratio (in times)	0.16	0.18	(9.94)	-
Operating Profit Margin (%)	5.28	5.94	(11.20)	-
Net Profit Margin (%)	2.75	12.46	(77.95)	The decrease was primarily attributable to exceptional income recognized in FY 2024- 25, resulting in a higher profit margin in the previous year.
Return on Net Worth (%)	2.12	10.58	(79.96)	The decrease was mainly due to lower profitability during FY 2025- 26 as compared to FY 2024-25, which included exceptional income.

CAUTIONARY STATEMENT

Statements in this document that describe the Companys objectives, projections, estimates, expectations, or predictions may be considered "forward-looking statements" within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied due to a variety of factors. Key factors that could cause actual results to differ include, but are not limited to demand-supply dynamics, pricing of finished goods, stock availability and cost, cyclical trends in the Companys core markets, changes in governmental policies or regulations, shifts in tax regimes, political or economic developments and other internal business factors.

The Company undertakes no obligation to publicly revise, amend or update any forward-looking statements based on subsequent events, new information or future developments.

	For and on behalf of the Board of Directors
	K.M. Poddar	Avinash Khaitan
	Managing Director	Director
	DIN : 00028012	DIN : 06936383
Place : Kolkata
Dated : May 28, 2026