Cropster Agro Ltd Management Discussions

A. Global Economic Outlook:

The global economy continued to navigate a complex operating environment during the financial year 2025-26, characterised by moderating inflation, evolving monetary policies, geopolitical uncertainties, changing trade dynamics and uneven growth across major economies. While inflationary pressures have moderated from the elevated levels witnessed in the preceding years, the global economic environment continues to remain sensitive to interest-rate movements, commodity prices, geopolitical developments and disruptions in international trade.

Global growth remained resilient despite these challenges, supported by improving domestic demand in several economies, gradual easing of inflationary pressures and continued investment in infrastructure and technology. However, differences in growth performance across advanced, emerging and developing economies remained significant.

Central banks across major economies continued to focus on maintaining price stability while balancing the need to support economic activity. The gradual moderation in inflation has provided greater flexibility to monetary authorities, although policy decisions continue to remain data-dependent. Fiscal authorities globally are also focused on maintaining fiscal discipline, strengthening public finances and providing targeted support to vulnerable sections of society.

Emerging markets and developing economies continue to remain important contributors to global growth. However, these economies continue to face challenges arising from exchange-rate volatility, capital-flow movements, commodity-price fluctuations, geopolitical tensions and changes in global trade policies.

For businesses operating in the agricultural and food-grain ecosystem, global developments have a direct and indirect impact through commodity prices, input costs, international trade, logistics, exchange rates and domestic food inflation. Accordingly, the outlook for the sector remains closely linked with global commodity markets as well as domestic agricultural production.

The global economic environment is therefore expected to remain cautiously optimistic, with opportunities arising from moderating inflation and resilient demand, while geopolitical tensions, protectionist trade measures, climate-related disruptions and commodity-price volatility remain important risks.

B. Overview of the Indian Economy:

The Indian economy continued to demonstrate resilience during FY 2025-26 despite a challenging global environment. According to the First Advance Estimates released by the National Statistical Office, Indias real GDP was estimated to grow by 7.4% during FY 2025-26, compared with 6.5% growth in FY 2024-25.

The Indian economy benefited from sustained domestic demand, public capital expenditure, improving investment activity, resilient services and continued formalisation of economic activity. The Governments focus on infrastructure development, manufacturing, logistics, digitalisation and improving the business environment has continued to support medium- and long-term economic growth.

Indias medium- to long-term growth prospects remain favourable, supported by a large domestic market, favourable demographics, increasing urbanisation, digitalisation, infrastructure development and continuing reforms. Nevertheless, global economic conditions, commodity-price volatility, climate change, geopolitical developments and domestic policy changes may influence the pace of economic growth.

C. Industry structure and development:

Agriculture continues to occupy a significant position in the Indian economy and remains an important source of livelihood and economic activity across the country. Indias diverse agro-climatic conditions enable the cultivation of a wide range of food grains, pulses, oilseeds, fruits, vegetables and commercial crops.

The agricultural sector has witnessed increasing emphasis on productivity enhancement, mechanisation, irrigation, improved seeds, technology adoption, warehousing, logistics and market linkages. The Government and private sector are increasingly focusing on strengthening the agricultural value chain from farm to market.

The Governments continued focus on agricultural infrastructure, storage capacity, logistics, digital agricultural markets and reduction of post-harvest losses provides opportunities for organised players in the agricultural trading ecosystem.

The agricultural trading industry is therefore expected to remain competitive, with success depending upon procurement efficiency, quality management, market knowledge, working-capital discipline, storage and logistics capabilities and the ability to respond quickly to changes in commodity prices and market conditions.

D. Opportunities and Threats:

Opportunities:

? Expansion of Agricultural Trading: Increasing demand for grains, oilseeds, spices and other agricultural products provides opportunities for Company to expand its trading activities.

? Government Support to Agriculture: Government initiatives relating to agricultural infrastructure, farmer welfare, warehousing, logistics and market development are expected to support the overall growth of the agricultural sector.

? Improved Supply Chain Infrastructure: Development of modern warehousing, transportation and logistics facilities can improve procurement and distribution efficiency and reduce post-harvest losses.

? Technology and Digitalisation: Increasing adoption of digital platforms, technology-enabled procurement and improved market information can provide opportunities to enhance trading efficiency and market reach.

? Strong Domestic Market: Indias large agricultural base and significant domestic consumption provide a favourable long-term market for companies engaged in agricultural commodity trading.

Threats:

? Climate and Weather Risk: Agricultural production remains dependent on monsoon, rainfall, temperature and other climatic conditions. Unseasonal rainfall, droughts, floods and extreme weather events may affect availability and prices of agricultural comm odities.

? Commodity Price Volatility: Significant fluctuations in prices of grains, oilseeds, spices and other agricultural commodities may affect trading margins and working-capital requirements.

? Government Policy Changes: Changes in Government policies relating to agricultural commodities, procurement, stock limits, imports, exports, taxation and other regulations may impact the Companys operations.

? Increasing Competition: The agricultural trading sector is highly competitive, with participation from organised as well as unorganised players, which may put pressure on margins.

? Regulatory and Compliance Risk: Changes in applicable laws, regulations, taxation and compliance requirements may increase the cost and complexity of conducting business.

E. Segment-wise or Product-wise performance:

The Company is primarily engaged in Single Segment i.e. Trading.

F. Future Outlook:

The Company presents the analysis of the Company for the year 2025-26 & its outlook for the future. This outlook is based on assessment of the current business environment. It may vary due to future economic & other developments, both in India and abroad.

G. Risks and Concerns:

Risk management continues to be an important component of the Companys business operations. Given the nature of agricultural commodity trading, the Company is exposed to various risks including market risk, credit risk, liquidity risk, operational risk, commodity-price risk and regulatory risk.

The management periodically reviews the Companys business and financial exposures and takes appropriate measures to manage identified risks. The Companys approach is aimed at maintaining adequate controls, ensuring prudent deployment of funds and minimising avoidable financial and operational exposures.

H. Internal control systems and their adequacy:

The Company has established internal control systems commensurate with the nature, size and complexity of its operations. The internal control framework is designed to provide reasonable assurance regarding the achievement of operational objectives, safeguarding of assets, prevention and detection of errors and irregularities, reliability of financial reporting and compliance with applicable laws, regulations and internal policies.

The Companys internal control systems are reviewed periodically by the management and are subject to review by the Statutory Auditor and, where applicable, the Internal Auditor. The Audit Committee, wherever applicable, reviews relevant reports and monitors the implementation of recommendations.

The Company will continue to strengthen its systems and processes in accordance with the growth and changing requirements of the business.

I. Discussion on financial performance with respect to operational performance:

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

J. Material developments in Human Resources / Industrial Relations front including number of people employed:

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

K. Material Financial and Commercial Transactions:

During the year there were no material financial or commercial transactions.

L. Key Financial Ratios:

In accordance with the applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended from time to time, the Company is required to provide details of significant changes in key financial ratios, wherever applicable.

The relevant key financial ratios, together with the corresponding figures for the previous financial year and reasons for significant variations, are provided in the Financial Statements forming part of this Annual Report.

M. Human Resources:

The Company recognises its employees as an important contributor to its continued growth and operational performance. The Company seeks to maintain a positive working environment based on professionalism, integrity, accountability and mutual respect.

The Company also recognises that its business performance is influenced by several external factors. Accordingly, the Companys future performance may be affected by changes in global and domestic demand and supply conditions, Government policies and regulations, taxation, commodity prices, economic developments, climate conditions, litigation, business relationships and other factors beyond the Companys control.

1. Caution Statement:

The information contained in this Management Discussion and Analysis is based on the Companys current understanding of the business environment and should be read together with the Financial Statements and other disclosures forming part of the Annual Report.

Registered Office: B/2, 207, West Gate Business Bay, Opp. Andaj Party Plot, SG Highway, Jivraj Park, Ahmedabad, Gujarat, India - 380 051

By the Order of the Board of Cropster Agro Limited

Corporate Office: B/2, 207, West Gate Business Bay, Opp. Andaj Party Plot, SG Highway, Jivraj Park, Ahmedabad, Gujarat, India - 380 051

Place: Ahmedabad Date: 8th September, 2026

Sd/- Chirag Jonwal Director DIN: 11663060

Sd/- Vijaykumar Nayak Managing Director DIN: 11839733