Dangee Dums Ltd Management Discussions

GLOBAL ECONOMY OVERVIEW

During CY 2025, the global economy exhibited steady resilience despite ongoing geopolitical tensions and evolving global trade dynamics. Global economic growth remained stable at around 3.4%, which was supported by resilient consumption trends, stable labour markets in advanced economies, and continued growth momentum across emerging markets.

Among advanced economies, the United States maintained stable growth momentum which was supported by resilient consumption trends, although elevated interest rates continued to moderate investment. Europe experienced modest expansion, supported by easing energy prices and improving macroeconomic stability, despite persistent geopolitical uncertainties and subdued industrial output.

Emerging market and developing economies continued to outperform, growing at a relatively higher pace of around 4.4%, supported bydomestic demand and policy interventions. China witnessed a gradual recovery trajectory, although structural challenges in its property sector and lowered domestic demand continued to weigh on growth.

Global trade showed gradual recovery, supported by improving demand and supply chain realignments. However, trade activity remained below long-term averages due to tariff-related uncertainties and evolving geopolitical dynamics. Additionally, disruptions in energy markets and key trade routes continued to introduce intermittent volatility.

Outlook;

The global economy is projected to remain stable, with growth expected at around 3.1% in CY 2026 and 3.2% in CY 2027 reflecting steady but below historical average expansion. This resilience is expected to be supported by strong investment activity, particularly in technology and Artificial Intelligence (Al), along with relatively accommodative financial conditions and continued adaptability of businesses. However, the overall pace of growth remains moderated by elevated interest rates, fiscal consolidation in several economies, and limited productivity gains.

Global trade is expected to improve gradually, supported by strengthening demand and easing supply chain constraints, though it may remain below long-term averages due to evolving trade policies and geopolitical developments. Advanced economies are projected to grow at a moderate pace of around 1.8% in CY 2026 and 1.7% in CY 2027, while emerging market and developing economies are expected to growth of approximately 3.9% in CY 2026, driven by domestic demand. Within Asia, India is expected to remain a key growth driver.

Inflationary pressures are expected to moderate gradually over the medium term, supported by easing supply-side constraints and relatively stable commodity prices. Central banks across the world are expected to adopt a cautious, data-driven approach, balancing inflation control with growth support.

Despite the stable outlook, risks remain present and warrant close monitoring. These include potential escalation in geopolitical tensions, uncertainties in global trade policies, financial market volatility, and elevated public debt levels. At the same time, continued investments in technology and digital infrastructure present upside potential, particularly if they translate into sustained productivity gains. Overall, the global economic environment is expected to remain stable, with a positive and resilient outlook.

B) Indian Economy Overview :

India remained one of the fastest-growing major economies in FY 2025-26, supported by resilient domestic demand, sustained investment activity and a favourable policy environment. Reai GDP estimated to grew by 7.7%, during the year. Growth was led by strong performance across manufacturing and services sectors, reflecting broad-based economic momen- tum.specially in urban and semi-urban areas.

Economic activity was showcased by healthy consumption and capital formation trends. Private Final Consumption Expenditure (PFCE) and Gross Fixed Capital Formation (GFCF) both recorded growth of over 7.5%, highlighting the continued strength of household spending and investment demand. Secondary and tertiary sectors expanded by 8.8% and 9.3%, respectively, reinforcing Indias position as a key growth engine among major economies.

Macroeconomic fundamentals remained stable despite heightened global uncertainties. According to the RBI Bulletin, India continued to benefit from robust domestic consumption, government-led capital expenditure and improving private investment. Inflation remained largely within the monetary policy framework, while healthy banking sector balance sheets, rising corporate investments and comfortable foreign exchange reserves strengthened overall economic resilience.

Outlook:

The medium-term outlook remains supported by favourable structural drivers, including rising urbanisation, improving incomes, infrastructure investments and sustained consumption demand. The RBI projected real GDP growth of 6.7% for FY 2026-27, aided by resilient private consumption, continued government capital expenditure, strong capacity utilisation and stable credit availability across sectors.

While global supply chain disruptions, geopolitical developments and weather-related uncertainties may pose near-term challenges, domestic demand conditions remain constructive. Continued policy support for manufacturing, MSMEs and exports, coupled with stable employment trends and services sector momentum, is expected to sustain economic activity and support consumption-led growth across both urban and rural markets.

The Indian packaged food industry witnessed a gradual recovery in FY 2025-26 following subdued demand environment in FY 2023-24 & FY 2024-25. Consumer sentiment improved during the year, supported by stable macroeconomic conditions, reduction in Goods and Services Tax (GST) rates and a sustained recovery in rural consumption. Further, increased agricultural output and continued policy support contributed to higher rural disposable incomes, leading to demand revival across categories.

While FY 2025-26 faced headwinds from geopolitical tensions in the Middle East and persistent commodity inflation, a key development during the year was the rationalisation of the GST structure for packaged food categories. The reduction in GST rates enhanced affordability, particularly in mass consumption segments and acted as an important catalyst for demand recovery across price-sensitive categories.

Urban demand remained resilient, with consumption patterns reflecting premiumisation and a growing preference for convenience-led products, while rural markets benefited from higher purchasing power. As a result, the demand environment reflected a balanced recovery across both urban and rural geographies, with improving consumption visibility towards the latter half of the financial year.

These trends also influenced pricing strategies, portfolio interventions, distribution focus and channel engagement across the industry such as Input Costs and Market Dynamics, Consumer Trends and Portfolio Evolution, Rural Markets and Distribution Expansion, Channel Evolution and Digital Transformation.

The Indian bakery, confectionery, dessert, and quick-service food market continues to evolve, supported by changing consumer lifestyles, increasing urbanisation, rising disposable incomes, and growing demand for convenient and indulgent food options. These trends present several opportunities for Dangee Dums to strengthen its market position and pursue sustainable growth.

This analysis aims to highlight the key opportunities and threats faced by companies such as :

A) Opportunities:

> Expansion of the Store Network

> Growth Across Product Categories

> Increasing Demand for Affordable Indulgence

> Digital and Online Sales

> Brand Building and Customer Loyalty

> Institutional, Corporate and Celebration Business

> Technology and Operational Efficiency

B1 Threats :

> Intense Competition

> Rising Input Costs

> Changing Consumer Preferences

> Food Quality and Safety Risks

> Dependence on Delivery Platforms

> Execution Risks from Expansion

> Economic and Consumer Spending Conditions

> Regulatory Environment

> Talent and Human Resource Challenges

> Supply Chain and Operational Disruptions

Our Company has become a household name in Gujarat when it comes to Cakes and other Bakery products. The brand has found its niche in democratizing consumption of high quality cakes and pastries. We have a single segment i.e. Manufacturing and Trading of Bakery & Confectionery Products. The Comparative performance of the Company has been detailed in the financial Statements for Financial Year 2025-26.The Company operates in a single segment. Accordingly the performance is reported at an overall Company level as one segment.

The Company has a dedicated and skilled team that regularly reviews various aspects of its operations throughout the year. These reviews cover areas like overall Company controls, specific operational processes and Information Technology (IT) systems. The team also evaluates key business functions and looks into potential risks to make sure everything is running smoothly and compliantly.

To further strengthen this, the Company engages an independent firm of Chartered Accountants, apart from the internal auditor; these audits are done at regular intervals and follow proper auditing standards. The aim is to check how well the internal systems are designed and whether they are effective in managing risks, supporting day-to-day operations, safeguarding assets and ensuring all rules and guidelines are being followed. After each audit, a report is prepared with key findings and recommendations and these are reported to the Audit Committee, along with the managements response and Corrective Action Plans (CAPs).

The Companys internal controls are built on strong policies and clear procedures for all major activities. There is a clear structure for decision-making, well-planned business strategies, regular audits and timely reviews of the audit plans.

To ensure high standards of governance, the Company has constituted several internal committees. These committees help oversee how well the internal control systems are working and make sure everything stays efficient and effective. Details about these committees are provided in the Corporate Governance Report, which forms an integral part of this Annual Report.

The Audited Standalone Financial Statements of the Company, prepared in accordance with Section 133 of the Companies Act, 2013, read with the Companies (Accounts) Rules, 2014 and the Indian Accounting Standards (Ind AS), along with the Auditors Report, form an integral part of this Annual Report.

Dangee remains well positioned to benefit from the growing demand for branded food items, supported by its strong product portfolio, expanding distribution network and established brand presence. The Company continues to strengthen its reach across core and focus markets while enhancing consumer engagement through targeted marketing initiatives. Growth e-commerce and quick commerce channels is expected to further broaden its market presence. These initiatives are expected to support sustained volume-led growth and strengthen competitive positioning.

Looking ahead, the Company will continue to focus on capacity expansion, operational excellence and supply chain optimisation to support future growth. Increased penetration in focus markets, supported by deeper distribution and demand generation efforts, is expected to drive business expansion. The Company also sees significant opportunities in modern trade and emerging retail channels. Backed by a disciplined execution approach, Dangee remains focused on delivering profitable and sustainable long-term growth.

> The Companys Total Revenue was Rs.2,947.28 Lakhs in 2025-26 as compared to Rs.2,743.54 Lakhs in the previous year.

> The Companys Total Expenditure was Rs.3,073.08/- Lakhs in 2025-26 as compared to Rs.2828.10 Lakhs in the previous year.

> Profit/(Loss) before Tax was Rs. (125.80) Lakhs in 2025-26 as compared to Rs.(84.56) Lakhs in the previous year.

> The Net Profit/(Loss) after tax was Rs.( 139.46) Lakhs in 2025-26 as compared to Rs.(52.17) Lakhs in the previous year.

> Total comprehensive income was Rs.(137.42) Lakhs in 2025-26 as against Rs.(49.60) Lakhs in the previous year.

> The Cash and Cash equivalent as at March 31, 2026 was Rs.15.90 Lakhs as against Rs.17.53 Lakhs in the previous year.

> The detailed Financial and Operational Performance present in notes to accounts for the financial year 2025-26 which forms a part of this Annual Report.

The Company recognizes its employees as a key driver of its long-term growth and continues to showcase a safe, Inclusive and performance oriented work environment. It remains committed to upholding high standards of ethics, workplace safety, equal opportunity and fairemployment practices while adhering to globally recognized human rights principles. The Company invests in employee training, leadership development and skill enhancement initiatives to strengthen capabilities across the organisation and to improve productivity. A robust grievance redressal mechanism, along with a strong focus on employee well-being and engagement, supports a positive workplace culture and contributes to sustainable value creation. There were 58 number of Employees as on March 31, 2026.

The key financial ratios of the Company where there has been significant change (25% or more) and change in Return on Net Worth are summarized below along with detailed explanation:

The Management Discussion and Analysis Report contain statements regarding the Companys objectives, projections, estimates, expectations or predictions, which may be considered as forward-looking statements according to the applicable laws and regulations. These statements are based on certain assumptions and expectations of future events, and actual results may differ significantly from those expressed or implied in these statements. The Company undertakes no obligation to publicly update, amend, modify, or revise any forward-looking statements, whether due to subsequent developments, new information, events or any other reason.