Dhanwel Hybrid Seeds Ltd Management Discussions

You should read the following discussion of our financial condition and results of operations together with our Restated Financial Information included in the Draft Red Herring Prospectus. You should also read the section entitled "Risk Factors" beginning on page 33, which discusses several factors, risks and contingencies that could affect our financial condition and results of operations. The following discussion relates to our Company and is based on our restated financial information, which have been prepared in accordance with Indian GAAP, the Companies Act and the SEBI Regulations. Portions of the following discussion are also based on internally prepared statistical information and on other sources. Our financial year ends on March 31 of each year. Accordingly, all references to a particular financial year (‘Financial Year or ‘FY) relate to the twelve-month period ended March 31 of that year.

The financial statements have been prepared in accordance with Indian GAAP, the Companies Act and the SEBI (ICDR) Regulations and restated as described in the examination report issued of our statutory auditor dated December 27, 2025 which is included in this Draft Red Herring Prospectus under the section titled "Restated Financial Statement" beginning on page 184 of this Draft Red Herring Prospectus.

Our Company is engaged in the business of seed manufacturing, which includes the development, multiplication, processing, and supply of seeds for a variety of field crops and vegetables. The seed production process is carried out in a structured manner across multiple stages and involves the use of improved genetic seed material procured from recognised sources. Such seed material is multiplied, processed, conditioned, and handled in accordance with prescribed agronomic and processing practices to produce seeds suitable for agricultural use, including seeds supplied to farmers for crop cultivation.

The Company procures genetic seed material, including breeder and other suitable seed material, from recognised agricultural institutions, government-supported research organizations and open market. In addition, seed production is undertaken through arrangements with identified seed-growing farmers, wherein agricultural land owned by such farmers is utilised for cultivation. Under these arrangements, the Company supplies the requisite seed material and provides technical guidelines and cultivation protocols. The farmers carry out sowing and related agricultural operations in accordance with the Companys instructions, while the Companys field staff and agronomists monitor and supervise the crop to maintain quality standards. Although the ownership of agricultural land remains with the farmers, seed production undertaken through contractual arrangements is carried out in accordance with the Companys prescribed guidelines and supervision, and all subsequent processing, quality control, and commercial activities relating to such seeds are undertaken by the Company.

Post-harvest, the cultivated seeds are transported to the Companys processing facility, where they undergo a series of controlled operations, including mechanical cleaning to remove inert matter and impurities, precision grading to ensure uniformity, and seed treatment to enhance storability and protect against pests and diseases. Thereafter, the processed seeds are systematically packed using appropriate packaging standards to preserve quality, viability, and genetic characteristics prior to storage and distribution. The Companys seed processing unit is located at Jashapar, Kalavad, in Jamnagar District and is equipped with modern infrastructure spread across an area of over 10,218 square feet.

Our Company presently works with a limited number of contract seed-growing farmers under formal arrangements. However, our Company is not dependent exclusively on such contract farmers for seed availability. In cases of operational requirements, crop-specific demand, or supply constraints, the Company also procures seeds directly from farmers and the open market. Such procured seeds are thereafter subjected to sorting, cleaning, grading, processing, quality checks, labelling, and packing at the Companys processing facility before being sold in the market.

Our team comprises experienced agronomists, field staff, and technicians who ensure adherence to quality standards, support productivity improvements, and implement sustainable agricultural practices. Over time, our Company has established strong working relationships with the farming community and continues to follow an integrated approach that includes sourcing, production, quality control, and supply of seeds. Our seeds are sold under the brand name "Dhanwel Seeds". Our Company is ISO 9001:2015 certified and is committed to maintaining consistent seed quality and supporting the agricultural sector with reliable seed solutions.

Particulars	For the Period/Year ended on
	June 30, 2025*	March 31, 2025	March 31, 2024	March 31, 2023
Financial KPIs
Revenue from Operations	2,410.04	4,412.94	3,548.96	1,050.59
Growth in Revenue (%)	118.45	24.34	237.81	-
Total Income	2,410.14	4,413.44	3,549.00	1,050.61
Profit after Tax (PAT)	143.72	215.74	190.87	48.02
PAT Margin (%)	5.96%	4.89%	5.38%	4.57%
Cash Profit after Tax	148.74	234.25	197.54	48.55
EBITD	207.69	374.29	279.95	70.04
EBITD Margin (%)	8.62%	8.48%	7.89%	6.67%
Net Worth	1,470.60	1,326.88	365.10	103.67
Return on Net Worth (RoNW) (%)	9.77%	16.26%	52.28%	46.32%
Return on Capital Employed (RoCE) (%)	12.94%	38.48%	107.76%	47.19%
Total Debt	581.16	596.87	193.52	102.84
Current Ratio	2.40	2.59	1.44	2.19
Debt Equity Ratio	0.40	0.45	7.17	-
Operating Cash flows	(243.19)	(594.92)	28.83	42.04
Customers (% Contribution to Sales)
Customer Concentration Top 1 (in %)	31.25%	13.71%	4.59%	6.45%
Customer Concentration Top 3 (in %)	49.25%	17.47%	10.40%	15.18%
Customer Concentration Top 5 (in %)	54.73%	19.15%	13.13%	19.98%
Customer Concentration Top 10 (in %)	60.87%	22.23%	17.26%	28.51%

* Amounts not Annualized except Revenue Growth

Notes:

<25 Revenue from Operations means the Revenue from Operations as appearing in the Restated Financial Statements.

<26) Total Income represents the aggregate of Revenue from Operations and Other Income.

<27) EBITD is calculated as Profit before tax + Depreciation + Interest Expenses - Other Income.

<28 ‘ebitD Margin is calculated as EBITD divided by Revenue from Operations

<29) ‘PAT Margin is calculated as PAT for the period/year divided by revenue from operations.

<30) Cash Profit after Tax means the profit earned after tax but before deducting non-cash expenses like depreciation and amortization.

<31 Net worth means the aggregate value ofthe paid-up share capital and all reserves created out of the profits and securities premium account and debit or credit balance of statement ofprofit and loss, after deducting the aggregate value of the accumulated losses, deferred expenditure and miscellaneous expenditure not written off and non-controlling interest, as per the Restated Financial Information, but does not include reserves created out of revaluation of assets, write- back of depreciation and amalgamation.

<32 Return on Equity is ratio of Profit after Tax and Average Shareholder Equity.

<33 Return on Capital Employed is calculated as EBIT divided by capital employed, which is defined as shareholders equity plus total debt <long term borrowings + short term borrowings).

<34) Total Debt comprises both short-term and long-term borrowings, including working capital loans, term loans, and other secured or unsecured borrowings outstanding as at the reporting date.

<35) Current Ratio is calculated as current assets divided by current liabilities.

<36) Debt equity ratio is calculated as total debts divided by total shareholders equity.

Revenue from Operations	Revenue from Operations is used by our management to track the revenue profile of the business and in turn helps assess the overall financial performance of our Company and size of our business.
Total Income	Total income is used by the management to track revenue from operations and other income.
EBITD	EBITD provides information regarding the operational efficiency of the business.
EBITD margin (%)	EBITD Margin (%) is an indicator of the operational profitability and financial performance of our business.
PAT	Profit after tax provides information regarding the overall profitability of the business.
PAT margin (%)	PAT Margin (%) is an indicator of the overall profitability and financial performance of our business.
Net Worth	Net worth is used by the management to ascertain the total value created by the entity and provides a snapshot of current financial position of the entity.
Total Debt	Total debt helps the management to determine short term and long term debt of the company
	from various sources.
ROE (%)	RoE provides how efficiently our Company generates profits from shareholders funds.
ROCE(%)	ROCE provides how efficiently our Company generates earnings from the capital employed in the business.
Debt/Equity Ratio	Debt to equity ratio is calculated as Total Borrowings divided by Total shareholder fund
EPS	Net Profit after tax, as restated, attributable to equity shareholders divided by weighted average no. of equity shares outstanding during the year/ period.
Customers (% Contribution to Sales)	Customers (% Contribution to Sales) enables us to track the contribution of our key customers to our revenue and also assess any concentration risks.

Subsequent to the date of the last audited financial statements, i.e., June 30, 2025, the Board of Directors confirms that, there have been no material events or developments that may have a significant impact on the financial position of the Company.

Our business operations and financial performance are influenced by a combination of internal and external factors that affect seed production, processing, and market demand. Key factors that may impact our results of operations include the following:

1. Quality of Seed Material

The quality of seed material used in production plays an important role in determining the performance, uniformity, and acceptance of seeds in the market. Variations in seed characteristics may affect production outcomes.

2. Climatic and Environmental Conditions

Agricultural activities are dependent on weather conditions such as rainfall, temperature, and humidity. Adverse or unpredictable climatic conditions may affect seed production, crop yield, and demand.

3. Soil and Agronomic Conditions

Soil quality, nutrient availability, and cultivation practices followed by farmers may influence seed development and overall output.

4. Pests and Crop Diseases

Incidence of pests, insects, or crop diseases may affect crop health and seed quality, which could impact production volumes and marketability.

5. Cultivation and Pollination Practices

Seed production requires adherence to prescribed cultivation and pollination practices. Any deviations or external disruptions may affect seed quality and yield.

6. Processing, Storage, and Handling

Post-harvest handling, processing, grading, packing, and storage are important for maintaining seed quality. Inefficiencies or disruptions at these stages may impact product viability.

7. Supply Chain and Logistics

Availability and efficiency of transportation, warehousing, and distribution systems influence timely movement of seeds and may affect costs and delivery schedules.

8. Regulatory Environment

The seed industry is subject to various regulatory requirements relating to quality standards, labelling, and certifications. Changes in regulations or compliance requirements may affect operations.

9. Cost Structure

Costs related to procurement, processing, labour, transportation, and other inputs may vary over time and impact profitability.

10. Market Demand and Farmer Preferences

Demand for seeds depends on cropping patterns, farmer preferences, agricultural practices, and adoption of new varieties. Changes in demand may affect sales volumes.

11. Human Resources and Operational Expertise

Availability of skilled personnel for field supervision, processing, and quality-related activities influences operational efficiency.

12. Competitive Landscape

The presence of organised and unorganised players, pricing pressures, and industry trends may affect market positioning and margins.

13. Macroeconomic Factors

General economic conditions, inflation, and changes in input costs may impact purchasing behaviour and operational expenses.

Any adverse movement in one or more of the above factors may affect our production capabilities, sales performance, and financial results.

For Significant accounting policies refer "Annexure 04 - Restated Significant Accounting Policies and Notes to Restated Financial Information" under Section titled "Restated Financial Statement beginning on page 184 of this Draft Red Herring Prospectus.

The following table sets forth select financial data derived from our Restated Summary Statement of Assets and Liabilities as on the period ended June 30, 2025 and financial year ended March 31, 2025, 2024 and 2023:

Particulars	For the period/ year ended on
	June 30, 2025	March 31, 2025	March 31, 2024	March 31, 2023
Liabilities
Long-term Borrowings	158.11	85.15	-	34.00
Short-term Borrowings	423.05	511.72	193.52	68.84
Trade Payables	310.60	83.42	159.79	25.05
Assets
Non-Current Investment	-	-	-	-
Long-term Loans and Advances	-	-	-	-
Inventories	615.16	1,239.34	280.71	133.62
Trade Receivable	1,378.90	35.46	273.16	49.58
Short-term Loans and Advances	50.78	45.65	34.06	11.49

• Long-Term Borrowings

Our Companys Long-Term Borrowings stood at Rs. 158.11 lakhs as of June 30, 2025, compared to Rs. 85.15 lakhs as of March 31, 2025, reflecting a significant increase of 85.68%. This increase is primarily due to the disbursement of loans and credit facilities availed from Kotak Mahindra Bank, along with the company securing new loan and credit facilities from ICICI Bank. The shift to ICICI Banks facilities led to the rise in Long-Term Borrowings. Furthermore, Long-Term Borrowings as of March 31, 2025, amounted to Rs. 85.15 lakhs, whereas the Company did not have any long-term loan obligations as of March 31, 2024. In FY 2022-23, the Company had an unsecured long-term loan obligation of Rs. 34 lakhs from a non-related party, which was primarily taken to support working capital requirements.

• Short Term Borrowings

Our Companys Short-Term Borrowings stood at Rs. 423.05 lakhs as of June 30, 2025, as compared to Rs. 511.72 lakhs as of March 31, 2025, reflecting a decrease of 17.3%. This reduction is primarily due to change in credit facilities from Banks and better improved management of working capital. Further, Short-Term Borrowings as of March 31, 2025, amounted to Rs. 511.72 lakhs, representing a significant increase of 164.1% from Rs. 193.52 lakhs as of March 31, 2024. The increase in the prior year was primarily driven by the need to meet the companys growing working capital requirements and operational expenses. In FY 2022-23, the company had short-term borrowings of Rs. 68.84 lakhs, reflecting a modest increase compared to the earlier period, primarily to manage seasonal fluctuations in its working capital needs.

• Trade Payables

Our Companys Trade Payables stood at Rs. 310.60 lakhs as of June 30, 2025, compared to Rs. 83.42 lakhs as of March 31, 2025, reflecting a substantial increase of 272%. This increase is primarily due to higher business volumes and higher inventory stock-up due to receipt of multiple large orders and the companys efforts to manage liquidity by extending payment terms with suppliers, which allowed for more flexibility in cash flow management. Furthermore, the Trade Payables decreased by 47.78% from Rs. 159.79 lakhs as of March 31, 2024, to Rs. 83.42 lakhs as of March 31, 2025. This reduction in the previous year is due to payment settlements and repayment of outstanding payables at the end of the year and improved supplier terms. In the earlier periods, Trade Payables have increased by 537.88% from 25.05 Lakhs as on March 31, 2023 to 159.79 Lakhs as on March 31, 2024 mainly due to increased purchases and procurement during the year and new supplier relationships.

• Inventories

As of June 30, 2025, the Companys Inventory stood at Rs. 615.16 lakhs, marking a significant decrease from Rs. 1,239.34 lakhs as of March 31, 2025. This sharp reduction of 50.32% is primarily attributed to the Companys ongoing efforts to optimize inventory levels and improve working capital management and completion of order in hand from March 2025. The higher inventory levels as of March 31, 2025, were mainly driven by bulk purchases to fulfill large work orders, enabling the company to clear excess stock. In comparison, the inventory had increased from Rs. 280.71 lakhs as of March 31, 2024, to Rs. 1,239.34 lakhs as of March 31, 2025, reflecting a rise of 342.94%. This significant increase was driven by bulk orders received during the year, which were fulfilled in the first quarter of the next financial year, as well as the Companys proactive strategy to ramp up inventory in anticipation of higher demand and business growth.

The Company remains focused on maintaining an optimal balance between inventory levels and market demand, ensuring sufficient stock availability to meet customer needs while avoiding excess inventory that could overburden working capital.

• Trade Receivables

As of June 30, 2025, the Companys Trade Receivables amounted to Rs. 1,378.90 lakhs, reflecting a substantial increase from Rs. 35.46 lakhs as of March 31, 2025, representing a rise of 3,788.12%. This sharp increase is primarily due to higher sales volumes and Big orders received by the Company and being fulfilled by it and the extension of credit to customers to facilitate business growth. The increase in receivables indicates the Companys expanding customer base and its strategic decision to offer more flexible payment terms, enabling customers to make purchases on credit. Furthermore, Trade Receivables had decreased by -87.04%, from Rs. 273.16 lakhs as of March 31, 2024, to Rs. 35.46 lakhs as of March 31, 2025. This reduction was likely due to successful collection efforts, changes in credit policies, or a reduction in credit sales during FY 2024-25. When compared to March 31, 2023, Trade Receivables increased significantly from Rs. 49.58 lakhs to Rs. 273.16 lakhs as of March 31, 2024, reflecting a rise of 449.36%. This increase was driven by the companys expanded sales activity, with a higher proportion of sales made on credit to customers, especially in response to business growth and demand for flexible payment terms.

• Short Term Loans and Advances

As of June 30, 2025, the Companys Short-Term Loans and Advances stood at Rs. 50.78 lakhs, reflecting a modest increase of 11.16% compared to Rs. 45.65 lakhs as of March 31, 2025. These figures primarily consists of balances with revenue authorities. Looking at the year-on-year movement, Short-Term Loans and Advances grew by 34.15%, from Rs. 34.06 lakhs as of March 31, 2024, to Rs. 45.65 lakhs as of March 31, 2025. In comparison to March 31, 2023, where Short-Term Loans and Advances were at ^11.49 lakhs, the increase of 196.77% during FY 2023-24.

RESULTS OF OUR OPERATIONS

Particulars	For the Period/year ended on
	June 30, 2025	% of Total Income	March 31, 2025	% of Total Income	March 31, 2024	% of Total Income	March 31, 2023	% of Total Income
I Revenue from Operations	2,410.04	100.00%	4,412.94	99.99%	3,548.96	100.00%	1,050.59	100.00%
II Other Income	0.10	0.00%	0.50	0.01%	0.04	0.00%	0.02	0.00%
III Total Income	2,410.14	100.00%	4,413.44	100.00%	3,549.00	100.00%	1,050.61	100.00%
Expenses:
(a)Cost of Material Consumed	1,987.31	82.46%	4173.83	94.57%	3,202.54	90.24%	960.69	91.44%
(b) Purchase of stock-in-trade
(c) Changes in inventories of finished goods and work-inprogress	170.12	7.06%	(298.79)	(-6.77 %)	(37.14)	(-1.05%)	(51.59)	(-4.91%)
(d) Employee benefits expense	24.41	1.01%	81.29	1.84%	34.31	0.97%	16.94	1.61%
(e) Finance cost	10.71	0.44%	21.25	0.48%	9.99	0.28%	5.35	0.51%
(f) Depreciation and Amortization expense	5.02	0.21%	18.51	0.42%	6.68	0.19%	0.53	0.05%
(g) Other Expense	20.51	0.85%	82.32	1.87%	69.30	1.95%	54.51	5.19%
IV Total Expenses	2,218.08	92.03%	4,078.41	92.41%	3,285.67	92.58%	986.44	93.89%
V Profit/(Loss) before tax and Exceptional Items (III-IV)	192.06	7.97%	335.04	7.59%	263.32	7.42%	64.17	6.11%
VI Exceptional/Extraordinary Items
VII Profit/(Loss) before tax (V-VI)	192.06	7.97%	335.04	7.59%	263.32	7.42%	64.17	6.11%
VIII Tax Expense:
(a)Current tax expense	(46.98)	-1.95	(84.90)	-1.92 %	(65.90)	-1.86%	(16.34)	1.56%
(b)Deferred tax	(1.36)	-0.06	0.58	0.01%	(0.37)	-0.01%	0.19	0.02%
(c) Shortfall / Excess Provision	-	-	(34.97)	-0.79 %	(6.19)	-0.17%	-	-
IX Profit / (Loss) after tax (VII- VIII)	143.72	5.96%	215.74	4.89%	190.87	5.38%	48.02	4.57%

Set forth below are the principal components of statement of profit and loss from our operations:

TOTAL INCOME

Our total income comprises of (i) Revenue from Operations; and (ii) Other Income.

• Revenue from Operations

Revenue has increased significantly from Rs. 1,050.59 Lakhs in FY 2022-23 to Rs. 3,548.96 Lakhs in FY 2023-24, and further to Rs. 4,412.94 Lakhs during FY 2024-25. For the quarter ended June 30, 2025, revenue stood at Rs. 2,410.04 Lakhs. Revenue constitutes nearly 100% of total income in all reporting periods, indicating core operating activity remains the major contributor.

• Other Income

The Company has negligible other income (0.00%-0.01% of total income), indicating minimal reliance on non-operating streams.

TOTAL EXPENSE

Our expenses comprise of: (i) Cost of Goods Sold; (ii) Change in Inventories of Finished Goods; (iii) Employee Benefits Expense; (iv) Finance Costs; (v) Depreciation and Amortization expense; and (vi) Other Expenses. Total expenses increased from Rs. 986.44 lakhs in FY 2022-23 to Rs. 3,285.67 lakhs in FY 2023-24 and further to Rs. 4,078.41 lakhs in FY 2024-25 and Rs. 2,218.08 lakhs in Q1 2025-26, reflecting business scale-up.

• Cost of Goods Sold

Cost of Goods Sold represents Purchases, Direct expenses and changes in inventory of Raw Materials. The expense stood at ^1,987.31 lakhs (82.46%), Rs. 4,173.83 lakhs (94.57%), Rs. ,3,202.54 lakhs (90.24%) and Rs. 960.69 lakhs (91.44%). The higher material cost in the subsequent periods is due to peak procurement in large ongoing orders, whereas FY 202223 reflected balanced utilisation following earlier inventory buildup.

• Changes in inventories of Finished Goods

This represents movement in stock of Finished Goods. The changes amounted to Rs. 170.12 lakhs (7.06%), Rs. (298.79) lakhs (-6.77%), (Rs. 37.14 lakhs) (-1.05%), and (Rs. 51.59 lakhs) (-4.91%). A negative inventory change in FY 2024-25, 2023-24 and FY 2022-23 implies that company is stocking up Inventory for future requirements and needs based on estimation of demand.

• Employee Benefits Expense

Employee expenses include salaries, wages, allowances, contribution to provident funds, and other benefits. The expense stood at Rs. 24.41 lakhs (1.01%), Rs. 81.29 lakhs (1.84%), Rs. 34.31 lakhs (0.97%), and Rs. 16.94 lakhs (1.61%) for the respective periods. The increase in FY 2024-25 was mainly due to expansion of operations and staff strength.

• Finance Cost

Finance costs primarily comprise interest on working capital borrowings, term loans, and other financial charges. The finance cost stood at Rs. 10.71 lakhs (0.44%), Rs. 21.25 lakhs (0.48%), Rs. 9.99 lakhs (0.28%), and Rs. 5.35 lakhs (0.51%) for the respective periods. The rise in FY 2024-25 is due to increased utilisation of credit facilities to support working capital for multiple concurrent projects.

• Depreciation and Amortization Expense

Depreciation and amortization expense increased from Rs. 0.53 lakhs in FY 2022-23 to Rs. 6.68 lakhs in FY 2023-24 and further to Rs. 18.51 lakhs in FY 2024-25. For the quarter ended June 30, 2025, depreciation amounted to Rs. 5.02 lakhs, remaining broadly in line with the existing asset base. The increase over the years corresponds to additions in fixed assets, including plant and machinery and site equipment, to support execution capability and expansion.

• Other Expenses

Other expenses stood at Rs. 54.51 lakhs in FY 2022-23, increased to Rs. 69.30 lakhs in FY 2023-24, and rose to Rs. 82.32 lakhs in FY 2024-25. For the quarter ended June 30, 2025, the expense was Rs. 20.51 lakhs. The fluctuations primarily reflect variations in administrative and operational overheads, factory-related costs, and other expenses. The moderation in FY 2023-24 and FY 2024-25 reflects cost control initiatives and better expense rationalization while maintaining operational efficiency.

PROFIT BEFORE TAX

Profit before tax (PBT) increased significantly from Rs. 64.17 lakhs in FY 2022-23 to Rs. 263.32 lakhs in FY 2023-24, and further to Rs. 335.04 lakhs in FY 2024-25 reflecting robust growth in operating performance. As a proportion of total income, PBT improved from 6.11% in FY 2022-23 to 7.42% in FY 2023-24 and further to 7.59% in FY 2024-25, driven by higher revenues and improved cost management. For the quarter ended June 30, 2025, PBT stood at Rs. 192.06 lakhs, accounting for 7.97% of total income, underscoring sustained profitability momentum into FY 2025-26.

TAX

Tax expense increased from Rs. 16.15 lakhs in FY 2022-23 to Rs. 72.46 lakhs in FY 2023-24 and further to ^119.30 lakhs in FY 2024-25, in line with higher profitability. For the quarter ended June 30, 2025, tax expense stood at Rs. 48.34 lakhs, broadly maintaining the proportional relationship with profit levels. The increase mirrors the Companys enhanced profitability and regularization of tax provisions in accordance with applicable laws.

PROFIT AFTER TAX

Profit after tax (PAT) recorded strong growth, rising from Rs. 48.02 lakhs in FY 2022-23 to Rs. 190.87 lakhs in FY 2023-24 and further to Rs. 215.74 lakhs in FY 2024-25. The PAT margin expanded from 4.57% in FY 2022-23 to 5.38% in FY

2023- 24 and 4.89% in FY 2024-25, reflecting improved operational efficiency and better absorption of fixed costs. For the quarter ended June 30, 2025, PAT stood at Rs. 143.72 lakhs, representing a margin of 5.96%, indicating continued strengthening of bottom-line performance driven by operational discipline and sustained project activity.

TOTAL INCOME

1. Revenue from Operations

Our Companys Revenue from Operations increased from Rs. 3,548.96 lakhs in FY 2023-24 to Rs. 4,412.94 lakhs in FY

2024- 25, reflecting a growth of 24.34%. The growth was primarily attributable to higher sales volumes, wider market reach, and improved demand for hybrid seeds during the year.

The Company focused on strengthening its dealer network, expanding its market presence, and improving product availability during the sowing seasons, which resulted in higher revenue realization.

As a proportion of total income, revenue from operations remained consistently high at 99.99% in FY 2024-25, indicating that the Company continues to derive almost its entire income from its core business operations, with negligible dependence on non-operating income.

2. Other Income

Other Income stood at Rs. 0.50 lakhs in FY 2024-25 as compared to Rs. 0.04 lakhs in FY 2023-24, registering a significant increase primarily on account of Fixed Deposit interest income and miscellaneous receipts.

Despite the increase, Other Income continued to contribute insignificantly to total income, accounting for only 0.01% in FY 2024-25, thus reaffirming that the Companys earnings are predominantly operational in nature.

TOTAL EXPENDITURE

1. Cost of Materials Consumed

Cost of Materials Consumed increased from Rs. 3,202.54 lakhs in FY 2023-24 to Rs. 4,173.83 lakhs in FY 2024-25, reflecting an increase of 30.32%. The rise was mainly due to higher procurement of seeds and raw material to support the increased sales volume during the year.

As a percentage of total income, this expense increased from 90.24% in FY 2023-24 to 94.57% in FY 2024-25, reflecting pressure on gross margins due to higher input costs, increase in seed procurement prices, and rising logistics expenses.

2. Changes in Inventories of Finished Goods

Changes in inventories amounted to (Rs. 298.79 lakhs) in FY 2024-25 as compared to (Rs. 37.14 lakhs) in FY 2023-24. The significant negative movement reflects efficient clearance of existing stock and better inventory turnover during the year.

This improvement indicates effective inventory management and timely sales realization, which helped partly offset the impact of rising material costs.

3. Employee Benefits Expenses

Employee benefit expenses increased from ^3 4.31 lakhs in FY 2023-24 to Rs. 81.29 lakhs in FY 2024-25, primarily due to expansion of the sales and operational workforce in line with business growth.

As a percentage of total income, employee costs rose from 0.97% to 1.84%, reflecting higher manpower deployment to support the Companys expanding operations.

4. Finance Cost

Finance cost increased from Rs. 9.99 lakhs in FY 2023-24 to Rs. 21.25 lakhs in FY 2024-25, mainly on account of increased working capital borrowings required to support higher inventory levels and receivable cycles.

5. Depreciation and Amortization Expense

Depreciation and amortization expense increased from Rs. 6.68 lakhs in FY 2023-24 to Rs. 18.51 lakhs in FY 2024-25, attributable to capital investments in infrastructure, plant, and equipment made during the year to strengthen operational capacity.

6. Other Expenses

Other expenses increased marginally from Rs. 69.30 lakhs in FY 2023-24 to Rs. 82.32 lakhs in FY 2024-25, in line with business growth. These expenses mainly comprised selling, distribution, administrative, and marketing costs.

As a proportion of total income, Other Expenses remained stable at 1.87% in FY 2024-25 compared to 1.95% in the previous year, indicating efficient control over overheads.

7. Total Expenditure

Total expenditure increased from Rs. 3,285.67 lakhs in FY 2023-24 to Rs. 4,078.41 lakhs in FY 2024-25. However, as a percentage of total income, it marginally declined from 92.58% to 92.41%, reflecting improved overall operating efficiency.

PROFITABILITY

1. Profit Before Tax

Profit before tax increased from Rs. 263.32 lakhs in FY 2023-24 to Rs. 335.04 lakhs in FY 2024-25, registering a growth of 27.26%. The increase was supported by higher revenue and better inventory utilization.

2. Profit After Tax

Profit after tax increased from Rs. 190.87 lakhs in FY 2023-24 to Rs. 215.74 lakhs in FY 2024-25, reflecting a growth of 13.03%. The comparatively lower growth in PAT was mainly due to higher current tax liability and additional tax provisioning for prior periods during the year. As a result, PAT margin slightly declined from 5.38% in FY 2023-24 to 4.89% in FY 2024-25.

TOTAL INCOME

1. Revenue from Operations

Our Companys Revenue from Operations increased from Rs. 1,050.59 lakhs in FY 2022-23 to Rs. 3,548.96 lakhs in FY 2023-24, registering a substantial growth of 237.80%. The significant increase in revenue was primarily attributable to the expansion of business operations, higher market penetration, and strong demand for the Companys hybrid seed products across key agricultural regions.

The growth was also supported by onboarding of new distributors, improved dealer relationships, and better product acceptance among farmers. As a proportion of total income, revenue from operations remained consistently high at 100%, demonstrating that the Company continues to derive its income almost entirely from its core operations.

2. Other Income

Other Income increased marginally from Rs. 0.02 lakhs in FY 2022-23 to Rs. 0.04 lakhs in FY 2023-24. Despite the increase, the contribution of other income to total income remained insignificant at less than 0.01%, emphasizing that the Companys earnings are fundamentally operating in nature.

TOTAL EXPENDITURE

1. Cost of Materials Consumed

Cost of Materials Consumed increased from Rs. 960.69 lakhs in FY 2022-23 to Rs. 3,202.54 lakhs in FY 2023-24, reflecting a growth of 233.43%. The increase was in line with higher sales volume and business scale and was mainly due to increased procurement of seeds and raw material to meet rising demand.

As a percentage of total income, cost of material slightly declined from 91.44% in FY 2022-23 to 90.24% in FY 202324, indicating marginal improvement in gross margin management.

2. Changes in Inventories of Finished Goods

Inventory changes stood at (Rs. 37.14 lakhs) in FY 2023-24 as compared to (^51.59 lakhs) in FY 2022-23, reflecting better alignment of production and sales cycles and improved inventory turnover.

3. Employee Benefits Expenses

Employee benefit expenses increased from Rs. 16.94 lakhs in FY 2022-23 to Rs. 34.31 lakhs in FY 2023-24, reflecting investment in manpower to support the higher scale of operations.

Employee costs as a percentage of total income reduced from 1.61% to 0.97%, demonstrating operating leverage gained from scale expansion.

4. Finance Cost

Finance cost increased from Rs. 5.35 lakhs in FY 2022-23 to Rs. 9.99 lakhs in FY 2023-24 due to higher working capital requirements arising from business expansion.

5. Depreciation and Amortization Expense

Depreciation and amortization increased from Rs. 0.53 lakhs in FY 2022-23 to Rs. 6.68 lakhs in FY 2023-24, attributable to expansion in business assets and infrastructure.

6. Other Expenses

Other expenses increased from Rs. 54.51 lakhs in FY 2022-23 to Rs. 69.30 lakhs in FY 2023-24, on account of higher selling, distribution, and administrative costs due to increased business volume.

However, as a percentage of total income, Other Expenses declined from 5.19% to 1.95%, reflecting improved operating efficiency.

7. Total Expenditure

Total expenditure increased from Rs. 986.44 lakhs in FY 2022-23 to Rs. 3,285.67 lakhs in FY 2023-24. However, as a percentage of total income, total expenditure reduced from 93.89% to 92.58%, reflecting improved cost efficiency and operating leverage.

PROFITABILITY

1. Profit Before Tax

Profit before tax increased significantly from Rs. 64.17 lakhs in FY 2022-23 to Rs. 263.32 lakhs in FY 2023-24, registering growth of 310.36%, primarily driven by revenue growth and operating efficiencies.

2. Profit After Tax

Profit after tax increased from Rs. 48.02 lakhs in FY 2022-23 to Rs. 190.87 lakhs in FY 2023-24, reflecting a growth of 297.46%.

PAT margin improved from 4.57% to 5.38%, indicating better profitability and operational maturity.

The following table sets forth information relating to our Companys statement of cash flows for the financial years indicated:

Particulars	For the period / year ended on
	June 30, 2025	March 31, 2025	March 31, 2024	March 31, 2023
Net cash flows generated/ (used in) from operating activities	(243.19)	(594.92)	28.83	42.04
Net cash flows generated/ (used in) investing activities	(99.51)	(155.29)	(178.92)	(1.44)
Net cash flows generated/ (used in) financing activities	(24.36)	1,116.61	118.36	(4.55)
Net increase/(decrease) in cash and cash equivalents	(367.05)	366.40	(31.72)	36.06

OPERATING ACTIVITIES

For the period ended June 30, 2025, the Company reported a net cash outflow from operating activities of Rs. 243.19 lakhs. This outflow is primarily attributable to strategic working capital deployment, including increased receivables and inventory levels in anticipation of higher order execution and capacity utilization in subsequent quarters. The company appears to have consciously invested in building operational readiness, which may temporarily impact cash flows but positions the business for improved execution capability and scale benefits in the near term.

For the year ended March 31, 2025, net cash used in operating activities stood at Rs. 594.92 lakhs. This reflects aggressive expansion-led working capital usage, as the company scaled operations to support a growing customer base and expanded operational footprint. The rise in receivables indicates increasing sales traction, while higher inventory levels suggest preparedness for order inflows. Additionally, increases in employee and operating expenses reflect investment in organizational strengthening. Such short-term cash absorption is indicative of a business in a build-up phase, not operational weakness.

For the year ended March 31 2024, net operating cash inflow of Rs. 28.83 lakhs demonstrated the companys ability to maintain positive core cash generation even during a phase of rising costs and restructuring. Similarly, for the year ended March 31, 2023 cash inflow of Rs. 42.04 lakhs confirms that the business model is fundamentally capable of generating operating cash when stabilized.

INVESTING ACTIVITIES

For the period ended June 30, 2025, investing outflows of Rs. 99.51 lakhs were primarily toward asset acquisition and infrastructure enhancement.

For the period ended March 31, 2025, net cash outflow from investing activities was Rs. 155.29 lakhs, while FY 2024 witnessed an outflow of Rs. 178.92 lakhs. These investments reflect a clear capital expansion strategy, focused on enhancing capacity, modernizing equipment, and strengthening delivery capability.

For the period ended March 31, 2023, capex was minimal at Rs. 1.44 lakhs, indicating that the latest two years represent a deliberate growth phase, followed by an asset-light period.

FINANCING ACTIVITIES

For the quarter ended June 2025, net financing outflow of Rs. 24.36 lakhs reflects routine servicing of borrowings, indicating repayment discipline.

For the year ended March 31, 2025, net cash inflow from financing activities was a substantial Rs. 1,116.61 lakhs, which served as the primary funding support for business expansion and working capital growth. This capital infusion reflects strong lender and investor confidence.

For the year ended March 31, 2024 financing inflow of Rs. 118.36 lakhs also aided capex execution, while FY 2023 financing remained largely stable.

Related Party transactions with percentage wise breakup are as follows:

		For the year ended
Transactions during the year:	For the Period Ended June 30, 2025	March 31, 2025	March 31, 2024	March 31, 2023
Unsecured Loan Taken
Kishan Gordhanbhai Meghani	-	-	13.61	-
% of Total Borrowings	-	-	7.03	-
Sudhir Mohanbhai Pipaliya	-	-	13.61	-
% of Total Borrowings	-	-	7.03	-
Vimal Manshukhbhai Vekariya	-	-	13.61	-
% of Total Borrowings	-	-	7.03	-
Raju Arbhambhai Modhavadiya	-	-	6.81	-
% of Total Borrowings	-	-	3.52	-
Nikul Manshukhbhai Vekariya	-	-	6.81	-
% of Total Borrowings	-	-	3.52	-
Ashok Dilipkumar Jain	-	-	8.95	-
% of Total Borrowings	-	-	4.62	-
Chaitali Joy Banerjee	-	-	0.27	-
% of Total Borrowings	-	-	0.14	-
Kajal Ashok Jain	-	-	8.94	-
% of Total Borrowings	-	-	4.62	-
Kalidas Vijay Magar	-	-	0.53	-
% of Total Borrowings			0.27
Ketankumar Ashutosh Vyas	-	-	1.25	-
% of Total Borrowings			0.65
Kirti Ravi Kothari	-	-	2.21	-
% of Total Borrowings			1.14
Nisha Bothra	-	-	0.53	-
% of Total Borrowings			0.27
Samar Sahaji Ransing	-	-	0.53	-
% of Total Borrowings			0.27
Shreya Dheeraj Jain	-	-	1.56	-
% of Total Borrowings			0.81
Shubhash Nathamal Jain	-	-	1.56	-
% of Total Borrowings			0.81
Sunanda Dinesh Jain	-	-	1.56	-
% of Total Borrowings			0.81
Alpine Labs	-	20.00	184.00	70.00
% of Total Borrowings	-	3.35	95.08	68.07
The Super life Care	-	-	15.85	11.00
% of Total Borrowings	-	-	8.19	10.70
Unsecured Loan Repaid
Alpine Labs	-	20.00	218.00	125.00
% of Total Borrowings	-	3.35	112.65	121.55
The Super life Care	-	-	15.85	11.00
% of Total Borrowings	-	-	8.19	10.70
Sales
Kheti Vikas Bhandar - Kalavad	26.20	25.43	33.01	28.07
% of Revenue from operation	1.09	0.58	0.93	2.67
Purchase
Kheti Vikas Bhandar - Kalavad	-	0.29	6.24	8.00
% of Purchase	-	0.01	0.19	0.84
Directors Remuneration
Kishan Gordhanbhai Meghani	3.00	12.00	-	-
% of Employees Benefit expenses	12.29	14.76
Sudhir Mohanbhai Pipaliya	3.00	12.00	-	-
% of Employees Benefit expenses	12.29	14.76
Vimal Manshukhbhai Vekariya	3.00	12.00	-	-
% of Employees Benefit expenses	12.29	14.76
Payment to Creditors
A. D. Labs	-	-	23.00	-
% of Trade Payables	-	-	14.58	-
Payment for Purchase of Fixed Assets
Kishan Gordhanbhai Meghani	-	40.00	-	-
% of Trade Payables	-	25.03	-	-
Vimal Manshukhbhai Vekariya	-	40.00	-	-
% of Trade Payables	-	25.03	-	-
*Figures shown above are exclusive of GST and TDS
Outstanding Balance (Receivables)/Payable	For the Period	March 31, 2025	March 31, 2024	March 31, 2023
Unsecured Loan	Ended June 30, 2025
Alpine Labs	-	-	-	34.00
% of Total Borrowings	-	-	-	33.06
Kishan Gordhanbhai Meghani	-	-	13.61	-
% of Total Borrowings	-	-	8.52	-
Sudhir Mohanbhai Pipaliya	-	-	13.61	-
% of Total Borrowings	-	-	8.52	-
Vimal Manshukhbhai Vekariya	-	-	13.61	-
% of Total Borrowings	-	-	8.52	-
Raju Arbhambhai Modhavadiya	-	-	6.81	-
% of Total Borrowings	-	-	4.26	-
Nikul Manshukhbhai Vekariya	-	-	6.81	-
% of Total Borrowings	-	-	4.26	-
Ashok Dilipkumar Jain	-	-	8.95	-
% of Total Borrowings	-	-	5.60	-
Chaitali Joy Banerjee	-	-	0.27	-
% of Total Borrowings	-	-	0.17	-
Kajal Ashok Jain	-	-	8.94	-
% of Total Borrowings	-	-	5.59	-
Kalidas Vijay Magar	-	-	0.53	-
% of Total Borrowings	-	-	0.33	-
Ketankumar Ashutosh Vyas	-	-	1.25	-
% of Total Borrowings	-	-	0.78	-
Kirti Ravi Kothari	-	-	2.21	-
% of Total Borrowings	-	-	1.38	-
Nisha Bothra	-	-	0.53	-
% of Total Borrowings	-	-	1.38	-
Samar Sahaji Ransing	-	-	0.53	-
% of Total Borrowings	-	-	0.33	-
Shreya Dheeraj Jain	-	-	1.56	-
% of Total Borrowings	-	-	0.33	-
Shubhash Nathamal Jain	-	-	1.56	-
% of Total Borrowings	-	-	0.33	-
Sunanda Dinesh Jain	-	-	1.56	-
% of Total Borrowings	-	-	0.98	-
Remuneration Payable
Kishan Gordhanbhai Meghani	0.90	0.90	-	-
% of Employees Benefit expenses	12.38	8.75	-	-
Sudhir Mohanbhai Pipaliya	0.90	0.90	-	-
% of Employees Benefit expenses	12.38	8.75	-	-
Vimal Manshukhbhai Vekariya	0.90	0.90	-	-
% of Employees Benefit expenses	12.38	8.75	-	-
Sundry Creditors
A. D. Labs	-	-	-	23.00
% of Trade Payables	-	-	-	91.82
Sundry Debtors
Kheti Vikas Bhandar - Kalawad	3.20	-	-	-
% of Trade Receivables	0.23	-	-	-
Creditors for Fixed Assets
Kishan Gordhanbhai Meghani	-		40.00	-
% of Trade Payables	-	-	25.03	-
Vimal Manshukhbhai Vekariya	-	-	40.00	-
% of Trade Payables	-	-	25.03	-

The details of Contingent Liabilities of the Company for the period ended June 30, 2025 and financial year ended March 31, 2025, 2024 and 2023 respectively are as follows:

Particulars	For the Period ended June 30, 2025	For the year ended March 31, 2025	For the year ended March 31, 2024	For the year ended March 31, 2023
I. Contingent Liabilities
(a) claims against the company not acknowledged as debt;	-	-	-	-
(b) guarantees excluding financial guarantees; and	-	-	-	-
(c) other money for which the company is contingently liable.	-	-	-	-

There have been no reservations, qualifications, matters of emphasis or adverse remarks in the Restated Financial Information of our Company for the period ended June 30, 2025 and financial years ended March 31, 2025, March 31, 2024 and March 31, 2023.

In the course of undertaking our business, we are exposed to the following risks arising from financial instruments, which include credit risk, liquidity risk and market risk. Our primary focus is to achieve better predictability of financial markets and seek to minimize potential adverse effects on our financial performance.

Credit Risk

Credit risk is the risk that a customer or counterparty to a financial instrument will fail to perform or fail to pay amounts due causing financial loss. The potential activities where credit risks may arise include from security deposits with bank, trade receivables, loans and advances and other financial assets. The maximum credit exposure associated with financial assets is equal to the carrying amount. Our exposure to credit risk is influenced mainly by the individual characteristics of each customer and the geography in which it operates. Credit risk is managed through credit approvals, establishing credit limits,

and continuously monitoring the creditworthiness of customers to which our Company grants credit terms in the normal course of business.

Liquidity Risk

Liquidity risk is the risk that we will encounter difficulty in meeting the obligations associated with its financial liabilities that are proposed to be settled by delivering cash or other financial asset. Our financial planning has ensured, as far as possible, that there is sufficient liquidity to meet the liabilities whenever due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to our reputation. We have practiced financial diligence and syndicated adequate liquidity in all business scenarios.

Market Risk

Market risk is the risk that results in changes in market prices, such as, interest rates and other price like equity prices, which will affect our revenue or the value of our materials purchased or consumed.

We are affected by inflation as it has an impact on the raw material cost, employee/labour costs, etc. In line with changing inflation rates, we rework our margins so as to absorb the inflationary impact.

1. Unusual or infrequent events or transactions

Except as described in this Draft Red Herring Prospectus, there have been no other events or transactions to the best of our knowledge which may be described as "unusual" or "infrequent".

2. Significant economic changes that materially affected or are likely to affect income from continuing operations Our business has been subject, and we expect it to continue to be subject to significant economic changes arising from the trends identified above in Factors Affecting our Results of Operations and other material changes. To our knowledge, except as we have described in the Draft Red Herring Prospectus, there are no known factors which we expect to bring about significant economic changes.

3. Known trends or uncertainties that have had or are expected to have a material adverse impact on sales, revenue or income from continuing operations

Apart from the risks as disclosed under Section titled "Risk Factors" beginning on page 33 in this Draft Red Herring Prospectus, in our opinion there are no other known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations.

4. Future changes in relationship between costs and revenues, in case of events such as future increase in labour or material costs or prices that will cause a material change are known.

Apart from the risks as disclosed under Section titled ""Risk Factors" beginning on page 33 in this Draft Red Herring Prospectus, there are no known factors that may adversely affect our business prospects, results of operations and financial condition.

5. Total turnover of each major industry segment in which the issuer company operated.

We operate in only one major segment.

6. Status of any publicly announced new products or business segment.

Otherwise as stated in the Draft Red Herring Prospectus and in the section "Business Overview" beginning on Page 127 in this Draft Red Herring Prospectus, our company has not publicly announced any new business segment till the date of this Draft Red Herring Prospectus.

7. The extent to which business is seasonal

Business Overview is not seasonal in nature. For further information, see "Risk Factor ", "Industry Overview" and "Business Overview" on page 33, 117 and 127 in this Draft Red Herring Prospectus respectively.

8. Any significant dependence on a single or few suppliers or customers.

The percentage of contribution of our Companys customers vis-a-vis the total revenue from operations respectively for the period ended June 30, 2025 and financial year ended March 31, 2025, 2024 and 2023 is as follows:

Particulars	As on June 30, 2025		FY 2024-25		FY 2023-24		FY 2022-23
Revenue from top 1 (one) customer	753.26	31.25%	605.06	13.71%	162.87	4.59%	67.77	6.45%
Revenue from top 3 (three) customer	1,186.84	49.25%	771.16	17.47%	369.15	10.40%	159.50	15.18%
Revenue from 5 (five) customers	1,319.12	54.73%	845.21	19.15%	466.12	13.13%	209.89	19.98%
Revenue from top 10 (ten) customers	1,466.97	60.87%	981.18	22.23%	612.44	17.26%	299.48	28.51%

The percentage of contribution of our Companys suppliers vis-a-vis the total purchases respectively for the period ended June 30, 2025 and financial year ended March 31, 2025, 2024 and 2023 is as follows:

Particulars	As on June 30, 2025		FY 2024-25		FY 2023-24		FY 2022-23
Purchases from top 1 (one) supplier	409.26	26.90%	650.00	13.48%	132.64	4.01%	69.11	7.24%
Purchases from top 3 (three) supplier	549.44	36.11%	920.78	19.09%	256.63	7.76%	175.21	18.36%
Purchases from 5 (five) supplier	568.31	37.35%	1,049.03	21.75%	354.55	10.73%	224.36	23.51%
Purchases from top 10 (ten) supplier	581.70	38.23%	1,187.32	24.61%	450.49	13.63%	297.81	31.20%

9. Any significant dependence on a single or few suppliers or customers.

We face competition from existing and potential competitors which is common for any business. We have, over a period, developed certain competitors who have been discussed in section titles "Business Overview" beginning on page 127 of this Draft Red Herring Prospectus.

10. Details of material developments after the date of last balance sheet i.e. June 30, 2025.:

Except as mentioned in this Draft Red Herring Prospectus, no circumstances have arisen since the date of last financial statement until the date of filing the Draft Red Herring Prospectus. which materially and adversely affect or are likely to affect the operations or profitability of our Company, or value of its assets, or its ability to pay its liability within next twelve months. Our Company has approved the Draft Red Herring Prospectus vide resolution in the Board Meeting dated December 31, 2025.