Consecutive Commodities Limited Management Discussions

The global economy during FY 2025-26 demonstrated steady, if uneven, resilience amid persistent geopolitical tensions, shifting trade policies, and evolving monetary conditions. According to the International Monetary Fund (IMF), global growth is estimated at around 3.0% for calendar year 2025, with projections of approximately 3.1% to 3.3% for 2026, supported by robust technology and AI-related investment, easing financial conditions, and greater-than-expected resilience to trade and geopolitical shocks, including the impact of conflict in the Middle East. The U.S. economy continued to expand at a moderate pace of around 2.0% to 2.7%, while Chinas growth moderated to approximately 4.4% to 4.8% amid structural headwinds. Global headline inflation continued its gradual decline through 2025, though renewed energy price pressures during the year kept inflation elevated in several advanced and emerging economies.

Central banks across major economies, including the U.S. Federal Reserve and the European Central Bank, largely maintained a cautious and calibrated approach to interest rates, balancing the need to support growth against the risk of resurgent inflation. Emerging markets, particularly in Asia, continued to outperform on the back of strong domestic demand, digital adoption, and structural reforms, even as capital flows and currency markets remained sensitive to global risk sentiment. As the global economic outlook remains dynamic and at times volatile, strategic diversification, disciplined risk management, and data-driven decision-making remain critical to identifying growth opportunities and navigating uncertainty across portfolios.

India remained the fastest-growing major economy in the world during FY 2025-26. As per official estimates, Indias real GDP grew by approximately 7.6% during the year, up from 7.1% in FY 2024-25, marking the sharpest pace of expansion since FY 2021-22, while nominal GDP grew by around 8.6% to 8.9%. Growth was broad-based, with the manufacturing sector recording double-digit expansion and the secondary and tertiary sectors both growing in excess of 9%, aided by resilient private consumption, strong government capital expenditure, GST rationalisation, softer crude oil prices, and improving industrial activity. The Reserve Bank of India progressively revised its FY 2025-26 GDP growth forecast upward through the year, from an initial estimate of around 6.3-6.8% to approximately 7.6%, reflecting the underlying strength of domestic demand. Inflation remained largely benign for most of the year, supported by moderating food and fuel prices, although it firmed up towards the latter part of the year on account of global energy price volatility linked to geopolitical tensions. The RBI maintained an accommodative-to-neutral policy stance during the year, having eased rates earlier before holding the repo rate steady to balance growth and price stability. Government initiatives, including continued Production-Linked Incentive (PLI) schemes, sustained infrastructure capital expenditure, and tax and GST reforms, continued to attract domestic and foreign investment. The Indian equity and commodity markets remained resilient through the year, and India continues to stand out as a preferred destination for global capital, particularly in sectors such as manufacturing, agriculture and allied activities, technology, financial services, and consumer goods.

The investment and trading landscape remains dynamic, shaped by global economic shifts, evolving policy frameworks, and technological innovation. While short-term volatility linked to global geopolitical developments and commodity price fluctuations may persist, Indias long-term growth prospects remain strong, particularly in sectors such as agriculture and allied trade, digital infrastructure, and sustainable business practices. With a disciplined and diversified strategy, the Company remains focused on capturing value and delivering sustainable returns for its stakeholders.

The trading and manufacturing industry for agricultural products continues to evolve rapidly, driven by increasing market sophistication, regulatory advancements, and the integration of technology across the value chain. There is a notable shift towards greater supply chain transparency, quality-driven trading practices, and a growing emphasis on sustainable and efficient agri-business operations. Digital platforms, data analytics, and improved logistics infrastructure are transforming procurement, trading, and distribution of agricultural commodities. Regulatory bodies continue to strengthen compliance frameworks, ensuring greater transparency and market integrity. As competition intensifies and customer expectations rise, entities that prioritise innovation, operational efficiency, and customised solutions are well-positioned to gain market share and drive long-term growth.

Growing Domestic Demand: Rising consumption, government capital expenditure, and rural demand are expanding market opportunities in the agri-trading sector. Technology Integration: Use of data analytics, digital trading platforms, and improved logistics enhances efficiency and market reach. Favorable Government Policies: PLI schemes, GST rationalisation, and continued infrastructure investment support growth in agriculture and allied trade. Diversification in Product Mix: Opportunities to expand into value-added agri-products and allied manufacturing segments. Regulatory Support: Reforms promoting transparency and ease of doing business boost industry credibility and growth.

Market Volatility: Global geopolitical tensions, commodity price fluctuations, and currency volatility can impact margins and returns. Regulatory Risks: Frequent regulatory changes may increase compliance costs and operational complexity. Intense Competition: Entry of new players and consolidation in the agri-trading space intensifies pressure on margins. Climatic and Supply Chain Risks: Adverse weather conditions and supply chain disruptions can affect availability and pricing of agricultural produce.

The Company is primarily engaged in a single segment, i.e. Trading in Agriculture products and Manufacturing of Agri Products in India. The Turnover of the Company for the Financial Year 2025-26 is Rs. 5,809.21 Lakhs (Rs. 58,09,20,806/-).

The future outlook for the agri-trading and manufacturing industry remains optimistic, supported by sustained domestic demand, continued government focus on the agriculture sector, and ongoing improvements in supply chain and trading infrastructure. As global and domestic markets evolve, the Company expects to benefit from increasing demand for quality agricultural products, efficient trading practices, and value-added processing. While macroeconomic uncertainties, commodity price volatility, and regulatory shifts may pose short-term challenges, the Company, by embracing technology, maintaining strong risk management, and adapting to changing market expectations, remains well-positioned to achieve sustainable growth and deliver long-term value to stakeholders.

The agri-trading and manufacturing industry faces several risks and concerns that could impact performance and operations. Market volatility, driven by global economic uncertainty, geopolitical tensions, and commodity price fluctuations, poses ongoing challenges to margins and returns. Regulatory changes and increased compliance requirements may raise operational complexity and costs.

Cyber security threats remain a critical concern amid growing reliance on digital platforms for trading and operations. Additionally, intense competition, evolving customer preferences, and pressure on margins may affect profitability. Effective risk management, technological resilience, and regulatory adaptability are essential to navigating these challenges and sustaining long-term growth.

During the year, the Company continued to strengthen its human resources framework to support strategic growth and enhance employee engagement. Key developments included the adoption of improved HR practices, implementation of targeted training programs, and initiatives aimed at building a future-ready workforce. The Company also focused on fostering a culture of performance, innovation, and diversity. Industrial relations remained stable and cordial throughout the year, with no disruptions to operations. As talent remains a critical asset, the Company remains committed to attracting, retaining, and developing high-performing professionals through competitive policies and a supportive work environment.

The Company has established a robust internal control framework designed to ensure the integrity of financial reporting, safeguard assets, and promote compliance with applicable laws and regulations. These controls are regularly reviewed and updated to address emerging risks and align with best industry practices. The internal audit function operates independently and reports directly to the Audit Committee, ensuring objective oversight and timely corrective actions. Periodic risk assessments, process audits, and system checks are conducted to maintain operational efficiency and minimize potential vulnerabilities. Based on evaluations carried out during the year, the internal control systems have been found to be adequate and effective in supporting the Companys objectives.

The financial performance of the Company for the Financial Year 2025-26 is described in the Directors Report of the Company.

The cordial employer-employee relationship also continued during the year under review. The Company has continued to give special attention to human resources.

The Statements made in the Management Discussion and Analysis describing the various parts may be "forward looking statement" within the meaning of applicable securities laws and regulations. The actual results may differ from those expectations depending upon the economic conditions, changes in Govt. Regulations and amendments in tax laws and other internal and external factors.

Registered Office: 16/1A, 6th Floor, FL-6G, Balaji Tower, Abdul Hamid Street, Kolkata - 700 069

By the Order of the Board of Consecutive Commodities Limited (Formerly known as Consecutive Investments & Trading Company Limited)

Corporate Office: B1-305 Westgate Business Bay, SG Highway, Ahmedabad - 380 051