Dodla Dairy Ltd Management Discussions

GLOBAL ECONOMY

Global economic output expanded at 3.4% in CY 2025, in line with the prior year, despite mounting headwinds from trade policy uncertainty and geopolitical friction. According to the International Monetary FundRS.s (IMF) World Economic Outlook (WEO) published in April 2026, global GDP is projected to grow at 3.1% in CY 2026 and at 3.2% in CY 2027, moderating from the 3.4% recorded in CY 2025 and remaining well below pre-pandemic averages. This moderation reflects, in significant part, the escalation of the West Asia conflict, which has introduced renewed supply chain pressures, elevated energy price volatility, and broader risk-off sentiment across global markets.

Through CY 2025, energy markets remained relatively contained, with Brent crude averaging approximately USD 69 per barrel for the full year as OPEC+ supply increases and subdued demand growth kept prices below CY 2024 levels. The energy shock materialised in early CY 2026, when the re-escalation of the West Asia conflict and disruption to regional energy supply routes drove Brent prices sharply higher, erasing the disinflationary tailwind that had supported consumer purchasing power and monetary easing through the prior year.

Emerging Markets and Developing Economies (EMDEs) are projected to expand at 3.9% in CY 2026 and 4.2% in CY 2027, continuing to anchor global growth momentum, though they remain sensitive to foreign institutional investor (FI I) outflows during periods of elevated market volatility. India and other Asia-Pacific economies are expected to lead this trajectory.

Continued US trade policy uncertainty suppressed capital investment across major economies. The IMF projects global GDP growth will moderate to 3.1% in CY 2026 as that momentum dissipates and higher energy costs absorb the tailwinds from monetary easing and technology investment. Advanced economies are expected to grow at 1.8% in CY 2026 and 1.7% in CY 2027. Recovery in Europe is being supported by increased public spending, particularly in defence, though elevated public debt levels and weakening industrial output continue to constrain growth headroom. [Sources: IMF World Economic Outlook, April 2026; EIA, Short-Term Energy Outlook, May 12, 2026]

Real GDP Growth: Selected Economies

Region/Economy	CY 2025	CY 2026P	CY 2027P
World	3.4%	3.1%	3.2%
Advanced Economies	1.9%	1.8%	1.7%
Emerging and Developing Economies	4.4%	3.9%	4.2%

P Projection I [Source: IMF World Economic Outlook, April 2026]

The Federal Reserve, having reduced rates through CY 2024 and early CY 2025, paused its easing cycle in CY 2026 as energy-driven inflation re-emerged, holding the federal funds rate at 3.50-3.75%. A higher-for-longer US rate environment sustains upward pressure on the US dollar, raising debt servicing costs for emerging market economies and compressing the monetary easing space available to central banks, including the RBI.

[Source: US Federal Reserve, FOMC Statement, March 2026] Emerging market and developing economies as a group grew at 4.4% in CY 2025, with growth projected to moderate to 3.9% in CY 2026 as higher energy import costs weigh on net energy-importing nations and tighter external financing conditions, driven by the United States rate environment, raise the real cost of dollar-denominated debt.

Sub-Saharan Africa grew at 4.5% in CY 2025, with growth projected at 4.3% in CY 2026. Three forces drive this moderation: a reduction in foreign aid flows as major donor economies reorient fiscal priorities, higher energy import costs arising from the West Asia conflict, and tighter external financing conditions as the stronger US dollar raises the real cost of dollar-denominated sovereign debt. For East Africa specifically, a sub-region that is both a growing dairy market and the geography of the CompanyRS.s international operations, the growth moderation translates directly into household income pressure, which moderates the pace at which consumers in Uganda and Kenya trade up from loose unpackaged milk to branded processed dairy products. Branded processed dairy commands a significant price premium over locally sourced loose milk in these markets. Consumer up-trading may be paced by household income dynamics, though East AfricaRS.s structural demand trajectory remains intact.

China, navigating a structural transition away from property-led growth toward domestic consumption and technology investment, is projected to expand at 4.4% in CY 2026. Fiscal and monetary stimulus from Chinese authorities has partially offset the demand drag from higher commodity prices and weak real estate sector activity. Stable Chinese growth supports globally traded commodity prices, including skimmed milk powder, at levels that do not introduce sharp procurement cost volatility for Indian dairy processors in the near term.

Global headline inflation is projected to rise modestly to 4.4% in CY 2026 before easing to 3.7% in CY 2027 (IMF WEO April 2026), though this CY 2027 figure has itself been revised upward from earlier IMF estimates, reflecting the persistence of energy price pressures stemming from the Israel-Gaza conflict. Disinflation had progressed sufficiently for the Federal Reserve, the European Central Bank, and the Bank of England to commence or continue easing cycles through

CY 2025, providing some relief to household purchasing power across emerging markets. The re-escalation of the West Asia conflict has, however, interrupted this disinflationary path in CY 2026: the IMF projects global headline inflation will edge higher before resuming its decline in CY 2027, creating a renewed inflationary impulse on input costs and household purchasing power across energyimporting economies, including India, Kenya, and Uganda. [Source: IMF World Economic Outlook, April 2026]

INDIAN ECONOMY

In 2025-26, India retained its position as the fastest-growing major economy globally. The Second Advance Estimates released by the Ministry of Statistics and Programme Implementation (MoSPI) place real GDP growth at 7.6% in 2025-26, up from 7.1% in 2024-25, consistent with the Reserve Bank of IndiaRS.s projection in its first bi-monthly Monetary Policy Statement for 2026-27.

The growth outturn was anchored in the breadth of domestic demand rather than any single sector or cyclical impulse. Private Final Consumption Expenditure accounted for approximately 61.5% of GDP in 2025-26, reflecting sustained strength of household spending across income segments. The services sector remained the primary growth driver. The manufacturing sector recorded strong growth under the rebased national accounts estimates, contributing meaningfully to the economyRS.s overall performance. Gross Fixed Capital Formation expanded at approximately 7.5% in FY 2025-26, supported by continued public investment in infrastructure and a gradual recovery in private sector capital formation. These demand-side dynamics created conditions for broad-based growth that extended beyond metropolitan centres into rural and semi-urban geographies. These are the same markets where organised dairy businesses procure milk and sell packaged products.

The IMF projects IndiaRS.s real GDP growth at 6.5% for 2026-27 on a fiscal year basis, with India remaining the fastest-growing major economy even as global growth moderates. This projected moderation reflects a normalisation of cyclical tailwinds rather than any structural deterioration.

India GDP Growth Projections

Year	2025	2026(P)	2027 (P)
GDP Growth (%)	7.6	6.5	6.5

P: Projections [Source: IMF World Economic Outlook, April 2026]

Private Final Consumption Expenditure grew at approximately 7% in 2025-26. Three developments reinforced each other to produce this result. Rural demand strengthened on the back of two successive above-normal monsoons, which improved agricultural output and farm incomes after the

weather-related stress of 2023-24. Urban consumption held firm, supported by rising real wages in formal employment. Retail inflation moderated through the year, expanding the real purchasing power of households and supporting volume-driven consumption growth.

Government expenditure continued to support rural and agricultural spending through 2025-26. Allocations under the Pradhan Mantri Kisan Samman Nidhi scheme and continued investment in rural road connectivity and cold chain infrastructure contributed to rural income levels and market access for milk producers. The Union Budget 2026-27, presented in February 2026, maintained this fiscal direction, signalling policy continuity on rural and agricultural spending.

[Sources: PIB, Union Budget 2026-27; MoSPI Second Advance Estimate, February 2026]

Agriculture and Rural Economy

GVA in agriculture, forestry, and fishing grew at an estimated 2.4-2.5% in 2025-26 under the new national accountsRS. series, moderating from 4.3% in 2024-25. The growth reflected favourable Kharif and Rabi outcomes supported by well-distributed rainfall across key producing states and record foodgrain output.

[Source: MoSPI Second Advance Estimate, February 2026] Inflation

Retail CPI inflation moderated significantly through 2025-26, ending the year at approximately 3.4% in March 2026, well within the RBIRS.s 2-6% tolerance band. The moderation was broad-based: food inflation eased on the back of improved agricultural output; core inflation remained contained as demand-side pressures stayed moderate. Fuel inflation, while elevated in H1 2025-26 due to global energy price movements ahead of the West Asia escalation, softened in the months prior to the conflictRS.s intensification in early CY 2026.

[Source: RBI Monetary Policy Report, April 2026]

Monetary Policy

The Reserve Bank of IndiaRS.s Monetary Policy Committee reduced the policy repo rate through 2025-26, cutting cumulatively by 125 basis points from 6.50% at the start of the year to 5.25% by March 2026. The April 2026 MPC meeting held the rate at 5.25%, signalling a pause to assess transmission while monitoring the inflationary implications of the West Asia conflict. The cumulative impact of this easing on working capital costs, farm credit, and consumer borrowing conditions will continue to play out through 2026-27.

[Source: RBI Monetary Policy Report, April 2026]

External Sector

IndiaRS.s merchandise exports grew at approximately 0.93% in 2025-26, reaching USD 441.78 billion, as slower global goods trade and US tariff policy uncertainty through much of CY 2025 weighed on volume momentum. Services exports were the stronger contributor to IndiaRS.s external performance, growing at approximately 7.94% to USD 418.31 billion, driven by sustained global demand for Indian IT, business process management, and consulting capabilities. Combined merchandise and services exports reached approximately USD 860 billion in 2025-26, growing at 4.22% over the prior year.

On the import side, merchandise imports rose approximately 7.5% to USD 774.98 billion, driven by higher gold procurement and capital goods inflows, widening the merchandise trade deficit. The current account deficit remained within manageable bounds at 0.8% of GDP in H1 2025-26, supported by a services trade surplus of approximately USD 214 billion and resilient remittance inflows. The rupee depreciated in 2025-26, more than in recent preceding years, though the RBIRS.s intervention kept volatility within bounds.

[Source: Ministry of Commerce and Industry, Foreign Trade Data FY 2025-26, April 2026; RBI Monetary Policy Report, April 2026]

CAPITAL MARKETS AND INVESTOR CONFIDENCE

Foreign Portfolio Investors (FPIs) maintained a cautious stance through FY 2025-26, with equity outflows surpassing INR 2.25 lakhs crores by early May 2026, exceeding the previous yearRS.s total exit of INR 1.66 lakhs crores. March 2026 recorded a historic monthly sell-off of INR 1.17 lakhs crores, with the financial services sector bearing the brunt, losing INR 31,831 crores in just two weeks of the month. While global headwinds and escalating West Asia tensions drove equity selling, the debt segment saw a significant rebound. Despite the record foreign exit, sustained support from domestic institutional and retail investors effectively stabilised the broader market.

[Source: SEBI Monthly Bulletin, March 2026 RBI Weekly Statistical Supplement, March 2026]

THE GLOBAL DAIRY MARKET

Global dairy markets in CY 2025 were characterised by abundant supply and significant price pressure across most product categories. Milk production growth across major exporting regions, the European Union, the United States, South America, and New Zealand, was supported by relatively low feed prices, which encouraged output and supply levels elevated through the year. Australia was the exception, recording a production decline due to poor pasture conditions and reduced water availability through the first half of CY 2025.

[Source: USDA Foreign Agricultural Service, Dairy: World Markets and Trade, December 2025]

The supply abundance had a pronounced impact on global dairy prices through H2 CY 2025. Fat markets were the hardest hit, with prices declining by more than 40% between September 2025 and February 2026. Whole milk powder followed a similar trajectory, falling approximately 30% over the same period. Protein markets, skimmed milk powder, cheese, and whey, were more resilient, recording price declines of approximately 15%. Whey prices bucked the trend entirely, continuing to rise through the period on the back of strong global demand for high-protein products. These price movements had direct implications for Indian dairy processors: lower globally traded commodity prices moderated the cost of imported dairy ingredients and reduced competitive pressure from imported skimmed milk powder, while simultaneously compressing the realisable price for exported dairy commodities.

[Source: Rabobank Global Dairy Quarterly, Early CY 2026] More recently, global dairy trade auctions have shown tentative signs of price recovery, with several consecutive increases in global dairy trade auction results lifting market sentiment. Current supply data, however, does not yet indicate that this recovery is structurally sustainable. Milk production across the EU, United States, South America, and New Zealand remains above prior year levels, and while the rate of growth is gradually normalising, markets remain well supplied.

[Sources: Global Dairy Trade Auction Results, CY 2026]

The EU, the United States, and New Zealand remain the anchors of global dairy exports, though their supply trajectories are diverging. EU milk production declined for the second consecutive year in CY 2025, with the cow herd contracting under the combined pressure of environmental regulations, disease outbreaks including Bluetongue virus and Lumpy Skin Disease, and the absence of generational renewal as the sector fails to attract young producers. EU farmgate milk prices in August 2025 were 12% above the prior year and 25% above the five-year average, reflecting tighter domestic supply even as global prices softened. EU processors have responded by concentrating output on high-margin products, particularly cheese. In the United States, by contrast, farmer margins remained supported by elevated beef prices, sustaining milk production growth directed primarily towards cheese, mozzarella and cheddar, and whey. New Zealand production grew 1.7% in CY 2025 on the back of good weather and a strong farmgate payout, with Fonterra projecting a farmgate price of NZD 9.00-10.00 per kilogram of milk solids for the 2025-26 season, well above break-even.

[Source: USDA Foreign Agricultural Service, Dairy: World Markets and Trade, December 2025]

On the demand side, China, Southeast Asia, and the Middle East remain the fastest-growing import markets, driven by rising per capita incomes and a structural shift in dietary

habits toward protein and calcium-rich foods. The Middle East is a significant import market for milk powders, fat-filled powders, and evaporated milk, making it sensitive to the geopolitical instability arising from the West Asia conflict. Any disruption to trade flows through the region could temporarily tighten global market balances and introduce price volatility across milk powder categories. Sustainability pressures are reshaping capital allocation and regulatory requirements across the industry. Rising compliance costs for meeting environmental standards are accelerating the exit of marginal producers and concentrating supply in fewer, larger, and better-capitalised operations. EU environmental regulations, including the agricultural carbon tax in Denmark and environmental protection requirements in Germany, have contributed directly to herd reductions. This consolidation dynamic, while it drives productivity gains at the farm level, is outpaced by herd contraction, resulting in lower aggregate output. Regulatory frameworks are making sustainability capability a condition of market access rather than a differentiator, raising the structural cost base for all participants.

As the supply base consolidates, pricing power shifts towards processors with the scale, cold chain depth, and distribution reach to serve fragmented demand. In markets where consumers are actively trading up from commodity formats (loose milk, generic powder) to branded, packaged, and value-added products, the margin differential between commodity and premium widens. Companies that have built brand equity, established multi-channel distribution, and invested in product development across value-added categories are positioned to capture a disproportionate share of that expanding margin pool.

THE AFRICAN DAIRY MARKET

African countriesRS. milk production has risen 17% between 2013 and 2023, increasing from 45.5 million to 53.2 million tons, according to the Barometer of African Agriculture released in October by the Foundation for Agriculture and Rurality in the World (FARM). Despite the decade-long growth, Africa produces only 5% of the worldRS.s milk, even though it holds 20% of the global cattle population.

The Middle East and Africa dairy market is estimated at USD 44.82 billion in 2026, up from USD 42.83 billion in 2025, and is projected to reach USD 56.23 billion by 2031, growing at a CAGR of 4.64%. Import demand for dairy across Africa is expected to continue rising in the coming years, with the North Africa region among those forecast to see sustained growth in dairy imports. A persistent structural gap, however, separates aggregate market growth from farm-level participation: the bulk of revenue is captured through imported and processed formats rather than locally produced raw milk, which means that growth in consumer

spending on dairy does not automatically translate into income gains for local farmers or supply security for domestic processors.

[Sources: FAO Regional Office for Africa; Dairy Business MEA, November 2025]

Demand is rising for milk, yogurt, and cheese across urban centres, driven by an expanding middle class and growing health awareness among consumers seeking protein and calcium-rich foods. Flavoured milk and yogurt are displacing carbonated beverages in many city markets, and functional dairy beverages including probiotic drinks are expanding from niche health channels into mainstream retail and foodservice. Traditional fermented formats, including Amasi and camel milk, retain strong cultural relevance across specific sub-regions.

West AfricaRS.s dairy market is expanding at a measured pace. Supply-side constraints remain structurally binding: cold chain infrastructure is fragmented, veterinary access is limited, feed quality is inconsistent, and local processing capacity remains well below demand. As a result, growth in consumer spending on dairy in West Africa is captured primarily by importers and reconstituters of milk powder rather than by domestic processors or farmers.

[Sources: Data Bridge Market Research, West Africa Dairy Market Report]

East Africa is the continentRS.s dairy hub, accounting for 48% of AfricaRS.s total milk production in 2023 with 25.4 million tons. Investment in modern dairy farming, cold storage infrastructure, and local milk processing is improving efficiency, reducing import dependence, and increasing domestic output. Demand growth in East Africa therefore has a higher probability of being captured by local and regional processors, those with procurement infrastructure, chilling networks, and processing capacity already in place, than by importers.

AfricaRS.s dairy beverage market is on a strong upward trajectory, with increased launch activity, brand investment, and modern trade penetration across urban agglomerations. Functional dairy beverages, including probiotic drinks, are expanding beyond niche health channels into mainstream retail and foodservice.

[Sources: Dairy Reporter, December 2025]

Government support across several African markets is contributing to the sectorRS.s expansion. In Uganda, the Dairy Development Authority has maintained a supportive regulatory framework for domestic processors. In Kenya, the Kenya Dairy BoardRS.s quality and market development programmes have improved the operating environment for formal sector participants. Subsidies, tax incentives, and infrastructure investments in select economies have lowered barriers for established dairy enterprises to scale operations, creating pockets of opportunity for players with distribution depth and supply chain capability.

THE INDIAN DAIRY MARKET

India is the worldRS.s largest milk producer, accounting for approximately 24% of global output. The dairy industry in India was valued at INR 21,318.5 billion in 2025 and is projected to reach INR 58,034.0 billion by 2034, registering a robust CAGR of 11.8% during 2026-2034.

India Dairy Market Growth Data (2020-34)

Year	Market Size (INR billion)
2020	12,221.60
2025	21,318.50
2030	37,186.20
2034	58,034.06

[Source: https://www.imarcgroup.com/dairy-industry-in-indial India accounts for approximately 24% of global milk production, a share underpinned by a vast smallholder farming base, deep cooperative infrastructure, and sustained government investment in livestock productivity. Currently, dairy is the largest agricultural product in India, contributing 5 percent to the national economy and directly employing more than 8 crores farmers (as per National Accounts Statistics), many of whom are small and marginal farmers. Women play a significant role in production and collection, which makes dairy a strong driver of inclusive growth.

The organised dairy sector operates through cooperatives, private dairy companies, and smallholder farmers. Cooperatives anchor procurement by ensuring stable farm-gate pricing, with the NDDB driving institutional development across the ecosystem. As of 2025-26, the cooperative dairy network comprised 22 milk federations, 241 district cooperative unions, 28 marketing dairies, and 25 milk producer organisations, covering approximately 2.35 lakhs villages and 1.72 crores dairy farmer members.

[Source: PIB, Department of Animal Husbandry and Dairying, Year End Review 2025, January 2026 I PIB Backgrounder, IndiaRS.s Dairy Sector; PIB, Dairy Cooperatives and Farmer Remuneration, 01 April 2026]

Milk Consumption in India

The availability of milk for each person in India has risen sharply over the past decade. Per capita milk availability has continued to rise and now exceeds the world average.

Urban consumers are shifting towards packaged, branded, and value-added formats - flavoured milk, probiotic drinks, and fortified dairy, while rural consumption continues to flow through cooperatives and the unorganised raw milk market. White Revolution 2.0, launched in December CY 2024 and operationally active through 2025-26, targeted bringing previously uncovered rural villages into the organised cooperative network, expanding the organised milk pool available to processors.

Institutional demand from hotels, restaurants, cafes, and food processors is a structurally growing consumption layer, driven by expansion in confectionery, bakery, and ready-to-eat segments that use milk solids and dairy fats as core inputs.

Government nutrition programmes sustain baseline demand for fluid milk and fortified dairy across Tier 2 and Tier 3 markets. North India leads in per capita milk intake by cultural preference. South and East India show stronger relative demand for curd, buttermilk, and dairy-based sweets. These categories carry higher margins and lower commoditisation risk than fluid milk.

[Source: PIB, IndiaRS.s Dairy Sector, September 2025]

Milk Production in India

IndiaRS.s dairy sector has recorded significant growth over the past decade. Milk production grew at a CAGR of 5.62% over the ten years from 2014-15 to 2023-24, rising from 146.31 million tons to 239.30 million tons, an increase of approximately 64% over the period. India ranks first in the world in milk production, contributing nearly 24.76% of global output, well ahead of countries such as the United States, Pakistan, China, and Brazil. Preliminary industry estimates put production at approximately 248 million tons in 2024-25, though official figures from the Department of Animal Husbandry and Dairying (DAHD) for that year are yet to be published. Production remains geographically concentrated, with the top states accounting for the dominant share of national output.

[Source: PIB: Strengthening Allied Sector and Market Access, March 2026 I PIB, Department of Animal Husbandry and Dairying, Year End Review 2025, January 2026]

Annual Milk Production and Cooperative Procurement Statistics (2021-22 to 2025-26) Milk Procurement by Dairy Cooperatives (thousand kg per day)

State	2021-22	2022-23	2023-24	2024-25	2025-26
Andhra Pradesh	2,028	2,320	2,618	2,787	2,749
Assam	43	49	52	92	155
Bihar	1,295	1,766	2,391	2,344	2,359
Chhattisgarh	66	57	69	70	59
Goa	55	49	41	39	39
State	2021-22	2022-23	2023-24	2024-25	2025-26
Gujarat	27,393	27,315	31,383	31,512	31,422
Haryana	515	458	570	509	476
Himachal Pradesh	107	109	98	158	223
Jammu and Kashmir	122	116	158	187	168
Jharkhand	154	181	259	257	288
Karnataka	8,155	8,026	8,305	8,807	9,939
Kerala	1,565	1,437	1,293	1,141	1,294
Ladakh			1	2	5
Madhya Pradesh	981	921	1,167	1,008	1,081
Maharashtra	3,865	3,638	4,081	4,385	4,169
Manipur	3	4	2	1	1
Meghalaya	14	13	11	10	11
Mizoram	4	3	2	2	2
Nagaland	3	3	3	2	3
Odisha	416	410	492	514	525
Puducherry	68	68	56	47	43
Punjab	2,252	2,173	2,365	2,577	2,650
Rajasthan	3,984	4,286	4,727	4,468	4,422
Sikkim	53	52	50	52	61
Tamil Nadu	3,560	3,469	2,930	3,367	3,468
Telangana	460	491	676	734	640
Tripura	5	5	5	5	5
Uttar Pradesh	1,630	1,438	1,957	2,023	2,309
Uttarakhand	201	187	189	212	231
West Bengal	180	224	263	260	292
Total	59,178	59,267	66,213	67,573	69,090
Liquid Milk Sales by the Dairy Cooperatives (thousand litres per day)
State	2021-22	2022-23	2023-24	2024-25	2025-26
Andhra Pradesh	1,358	1,400	1,427	1,397	1,395
Assam	64	74	83	94	112
Bihar	1,464	1,557	1,480	1,536	1,680
Chhattisgarh	199	242	259	266	295
Delhi	6,943	7,521	7,806	8,062	8,575
Goa	58	50	52	48	47
Gujarat	6,044	6,420	6,599	6,726	6,893
Haryana	297	309	278	268	261
Himachal Pradesh	22	24	24	23	25
Jammu & Kashmir	98	120	130	129	146
Jharkhand	418	444	423	432	462
Karnataka	4,472	5,041	5,311	5,408	5,372
Kerala	1,429	1,589	1,623	1,635	1,694
Ladakh	-	-	1	4	7
Madhya Pradesh	853	951	951	932	980
Maharashtra	4,631	4,982	4,961	4,935	5,125
Manipur	5	3	2	2	5
Meghalaya	12	13	11	10	11
Mizoram	4	3	3	4	4
Nagaland	5	5	5	7	7
Odisha	327	350	333	314	313
Puducherry	92	91	92	97	103

State	2021-22	2022-23	2023-24	2024-25	2025-26
Punjab	1,124	1,230	1,288	1,255	1,256
Rajasthan	2,329	2,883	2,989	2,988	3,209
Sikkim	47	44	51	57	56
Tamil Nadu	2,613	2,880	3,009	3,009	3,154
Telangana	930	963	969	984	1035
Tripura	7	7	7	6	5
Uttar Pradesh	1,699	1,928	2,106	2,250	2,524
Uttarakhand	157	161	154	158	168
West Bengal	1,388	1,423	1,432	1,366	1,379
Total	39,087	42,708	43,856	44,403	46,295

[Source: PIB, Dairy Cooperatives and Farmer Remuneration, 01 April 2026]

Top 5 Milk Producing States in India (2025-26)

These 5 states together contribute 54.09% of total milk production in the country.

1. Uttar Pradesh (15.66%)

2. Rajasthan (14.82%)

3. Madhya Pradesh (9.12%)

4. Gujarat (7.78%)

5. Maharashtra (6.71%)

[Source: Department of Animal Husbandry and Dairying] Government Initiatives

White Revolution 2.0, launched in December CY 2024, targets a 50% increase in cooperative milk procurement over five years through the formation of 75,000 new dairy cooperative societies and the strengthening of 46,422 existing ones. As of April 2026, 24,350 new multipurpose dairy cooperative societies had been formed and 19,592 existing ones strengthened, with a specific push to draw women farmers into the organised dairy sector. By FY 2028-29, cooperative milk procurement is targeted at 1,007 lakhs kg per day.

[Source: PIB, Dairy Cooperatives and Farmer Remuneration, 1 April 2026]

The National Programme for Dairy Development (NPDD) approved 253 projects across 28 states and 3 Union Territories with a cumulative outlay of INR 4,110.98 crores, of which INR 2,410.99 crores has been released. In FY 2025-26, 8,836 dairy cooperative societies were approved across 17 states with an outlay of INR 142.65 crores. The programme installed bulk milk coolers of 467 TLPD capacity and 2,330 electronic milk adulteration testing machines, operationalised 2,526 dairy cooperative societies and milk pooling points, and established processing infrastructure for 243 LLPD of value-added products.

[Source: PIB, Department of Animal Husbandry and Dairying, Year End Review 2025]

The Supporting Dairy Cooperatives and Farmer Producer Organisations scheme provides interest subvention of 2% per annum, with an additional 2% on prompt repayment, on

working capital loans. As of October 2025, INR 680.68 crores in interest subvention had been disbursed against working capital loans of INR 80,048 crores across 64 milk unions. Financially supported cooperatives set procurement price benchmarks that influence farm-gate pricing across entire catchment areas, directly affecting the procurement cost environment for private processors.

The Animal Husbandry Infrastructure Development Fund, with a revised outlay of INR 29,610 crores, offers 3% interest subvention for creation and strengthening of livestock product processing infrastructure. As of December CY 2025, 465 projects had been approved with an aggregate project cost of INR 21,562.85 crores and interest subvention of INR 669.59 crores disbursed.

[Source: PIB, Dairy Cooperatives and Farmer Remuneration, 1 April 2026]

The Rashtriya Gokul Mission (RGM), operating under a total allocation of INR 3,400 crores for the 2021-22 to 2025-26 cycle, focuses on genetic improvement of indigenous cattle and buffalo breeds through artificial insemination and advanced reproductive technologies. In 2024-25, 565.55 lakhs artificial inseminations were conducted nationally. Twenty-two IVF laboratories produced over 10.32 million doses of sex-sorted semen, of which 70 lakhs doses have been used. The programme has benefitted 5.54 crores farmers across 9.16 crores animals as of August 2025.

[Source: PIB Backgrounder, IndiaRS.s Dairy Sector; PIB, DAHD Year End Review 2025]

More than 45.60 lakhs fresh Kisan Credit Cards were sanctioned for animal husbandry and dairy farmers as of November 2025. Low-interest credit for cattle, fodder, and equipment purchase expands herd sizes and reduces distress cattle sales during periods of fodder scarcity, supporting more stable procurement volumes for processors.

The National Digital Livestock Mission (NDLM) has issued over 35.68 crores Pashu Aadhaar unique animal identification tags as of November 2025.

The Automatic Milk Collection System covers over 26,000 dairy cooperative societies and 17.3 lakhs milk producers across 54 milk unions in 12 states, with over 2.43 lakhs farmers, 1,374 supervisors, and 13,644 secretaries registered on the AMCS mobile application. GIS-based milk route optimisation has generated measurable transportation cost savings for cooperatives across Varanasi, Assam, Jharkhand, and Indore. In Ladakh, the AMCS was launched in May CY 2026 alongside new milk processing units in Leh and a 10 TLPD dairy plant foundation in Kargil, reflecting the governmentRS.s push to bring even remote geographies into the organised dairy fold.

[Sources: PIB, Digitalising IndiaRS.s Dairy Sector, January 2026; PIB, Ladakh Dairy Infrastructure, April 2026]

Macro Context: Industrial Output

IndiaRS.s Index of Industrial Production grew 4.1% in March 2026, with manufacturing expanding 4.3% and mining 5.5%. Food products manufacturing recorded 0.5% growth in March 2026 and 0.9% for 2025-26. Consumer non-durables, within which processed dairy products are classified, grew 1.1% in March 2026. Capital goods output grew 14.6%, consistent with continued private investment in processing and manufacturing infrastructure and aligned with AHIDF uptake data above.

[Sources: PIB, Quick Estimate of Index of Industrial Production, March 2026, 28 April 2026; MoSPI]

OPPORTUNITIES Rising Population

IndiaRS.s population of 1.4 billion, with a young demographic profile and a rapidly expanding middle class, represents a structural demand base for protein and calcium-rich nutrition.

[Sources: IMARC Group, Global Dairy Market Report 2025; PIB Backgrounder, IndiaRS.s Dairy Sector]

Rapid Urbanisation

Urban migration is changing how dairy is purchased and consumed. Packaged and branded formats are displacing loose milk in Tier 1 and Tier 2 cities as working households prioritise convenience. White Revolution 2.0RS.s expansion into previously uncovered villages will grow the organised procurement base, creating a tighter, better-quality raw milk pool that enables processors to scale branded output. [Sources: IMARC Group, Global Dairy Market Report 2025] Increasing Health and Nutrition Awareness

IndiaRS.s per capita milk availability in 2025-26 exceeded the world average yet consumption is shifting within dairy towards fortified, functional, and value-added formats at a pace that volume growth alone does not capture. Urban consumers are making purchasing decisions on nutritional grounds consistently and at scale.

[Sources: PIB Backgrounder, IndiaRS.s Dairy Sector; IMARC Group, Global Dairy Market Report 2025]

Growth in Value-Added Dairy Products (VAPs)

The value-added dairy segment is growing faster than fluid milk. Flavoured and fortified milk, probiotic drinks, Greek yogurt, and high-protein formats are drawing consumers willing to pay a premium. The NPDDRS.s establishment of processing infrastructure for 243 LLPD of value-added products in FY 2025-26 signals the policy direction. For processors with cold chain depth and processing flexibility, the VAP mix shift is the most direct route to margin improvement in a competitive procurement environment. [Sources: PIB, DAHD Year End Review 2025]

Expansion of Export Markets

IndiaRS.s dairy export basket, led by SMP butter, ghee, and cheese, is finding growing traction in Southeast Asia, the Middle East, and Africa, markets where consumption growth is outpacing local supply. With milk output valued at INR 12.21 lakhs crores in 2023-24, the production base is large enough to sustain both domestic consumption growth and a meaningful export programme. Compliance with international quality standards and strengthening of bilateral trade frameworks are the operational prerequisites for converting this potential into revenue.

[Sources: PIB, DAHD Year End Review 2025; PIB Backgrounder, IndiaRS.s Dairy Sector]

Technology Adoption and Dairy Innovation

IndiaRS.s dairy digitalisation programme is among the most comprehensive in any emerging market. Pashu Aadhaar has created a digital identity for 35.68 crores animals as of November 2025. AMCS has digitised milk procurement payments for 17.3 lakhs producers across 54 milk unions, ensuring transparent, direct bank transfers. GIS-based milk route optimisation has reduced transportation costs for cooperatives across multiple states. The NDERP enterprise resource planning system links procurement, processing, sales, and payroll in a single platform from farm to consumer. [Sources: PIB, Digitalising IndiaRS.s Dairy Sector, January 2026] Consolidation towards Organised and Branded Players

The Indian dairy landscape is undergoing a structural shift as market share steadily migrates from the fragmented unorganised sector to organised, branded players. Driven by heightened consumer awareness regarding food safety, adulteration risks, and strict quality assurance, households are increasingly willing to pay a premium for trusted brands. This formalisation is further accelerated by GST compliance, digital payment ecosystems, and formal credit access, which give large-scale cooperatives and private corporate dairies a distinct competitive edge over local vendors. For organised processors, this consolidation unlocks significant economies of scale, justifying deeper investments in cold-chain infrastructure, robust procurement networks, and modern manufacturing facilities that permanently alter market dynamics.

Challenges

Cost Inflation: In H1 CY 2026, milk prices are up INR 2-5 per litre. Three forces have converged: acute fodder shortages, cattle feed costs surging 35-40%, and polymer scarcity pushing up packaging expenses. These issues reflect deeper supply-chain fragility that has been building for years.

Climate Stress: Climate change is actively reshaping procurement windows. Prolonged high temperatures are compressing the flush season, the period when milk output peaks and supplies are replenished. Meanwhile, green fodder, which is rain-fed and available only seasonally, is yielding less and arriving later.

Feed Quality: Across the supply chain, poor-quality cattle feed-raw materials substituted for compound formulations, is creating nutritional deficiencies in livestock. The downstream effects are compounding: lower reproduction rates, reduced herd productivity, and elevated toxin levels in milk that create quality and safety risks.

Supply vs. demand: Production growth at 3.5-3.78% is running far behind demand at 6%. Fodder constraints and rising production costs are suppressing the supply side when the demand side, driven by population, income growth, and dietary shifts, shows no sign of slowing.

COMPANY OVERVIEW

Dodla Dairy Limited (also referred to as RS.Dodla DairyRS., RS.DodlaRS., RS.The CompanyRS., and RS.WeRS.), incorporated in 1995, is a South India-headquartered integrated dairy enterprise with operations spanning milk procurement, processing, and distribution across India, Uganda, and Kenya. Our product portfolio covers daily consumption dairy categories across fluid milk and value-added products (VAPs), including curd, paneer, ghee, flavoured milk, lassi, ice cream, cheese, and yogurt, serving consumer preferences across income segments and geographies.

As of 31 March 2026, we operated 16 processing plants in India and one facility each in Uganda and Kenya, with an aggregate installed processing capacity of 29 lakhs litre per day on a consolidated basis. Our procurement infrastructure comprised 8,059 village-level collection centres across 10,976 villages, supported by 273 chilling centres and a dedicated fleet of 1,064 primary vehicles. We distributed our products through 2,881 milk and milk product distributors, 3,215 agents, and 1,106 Dodla Retail Parlours across 17 states in India.

India Business

During 2025-26, we expanded our geographic footprint through the strategic acquisition of OSAM (HR Food Processing) which serves as a cornerstone for Dodla DairyRS.s expansion into the under-penetrated and high-growth markets of Bihar and Jharkhand. This transaction is perfectly

aligned with DodlaRS.s long-term inorganic growth strategy, providing immediate access to a robust vertically integrated supply chain that includes two operational processing plants with a combined capacity of 2.22 LLPD, 20 chilling centres. By leveraging OSAMRS.s established premium brand presence and extensive distribution network, spanning 42 districts, Dodla aims to unlock significant supply chain synergies and accelerate the penetration of its high-margin value-added product (VAP) portfolio in Eastern India. This move positions the Company to capitalise on a region where milk consumption and urbanisation are growing faster than the national average.

Average consolidated milk procurement stood at 18.75 LLPD in 2025-26, with average sales of 17.59 LLPD. The VAP mix reached approximately 29.2% of revenues in FY 2025-26, reflecting continued progress on premiumisation. Bulk commodity sales of SMP and butter declined sharply to INR 86 crores in 2025-26 from INR 312 crores in 2024-25, as reduced flush season surpluses left minimal inventory available for commodity conversion.

Procurement costs remained elevated through 2025-26, driven by erratic rainfall patterns that disrupted the flush season and created an industry-wide shortage of milk supply. Selling price increases were not passed on in full, particularly during the winter months, to protect market share, a deliberate pricing strategy consistent with industry practice during periods of subdued seasonal demand.

Our greenfield Maharashtra facility near Solapur, with a planned processing capacity of 10 lakhs litres per day, progressed on schedule during the year. Civil work is underway and INR 1060 million of the total planned capital outlay of INR 2,800 million has been deployed as of 31 March 2026. Milk procurement from Maharashtra reached approximately 2.0 to 2.1 lakhs litres per day during

2025- 26, with a target to scale this to 5 lakhs litres per day ahead of commercial operations commencing by end of

2026- 27.

Africa Business

Our Africa operations, conducted through Lakeside Dairy Limited in Uganda and Dodla Dairy Kenya Limited and Country Delight Dairy Limited in Kenya, mirror the integrated procurement, processing, and distribution model of our India business. Products are marketed under the Dairy Top, Dodla+ and Pride of Cows brands.

The African business delivered consolidated revenue of INR 5,042 million in 2025-26, a 33% year-on-year increase, with Uganda contributing higher margins and Kenya scaling rapidly as we deepened market penetration. EBITDA from Africa operations grew from INR 416 million to INR 572 million over the same period. Uganda operates at structurally higher EBITDA margins than Kenya by approximately 200-300 basis points, reflecting limited competition and constrained supply of processed dairy in the Ugandan market. We hold the number one position in UgandaRS.s yogurt segment.

During FY 2025-26, the Company secured a 70-acre land parcel in Uganda for a greenfield expansion project, with a planned capital outlay of INR 600 million over two years. The new facility, located approximately 100 kilometres from Kampala, will target the fresh and pasteurised milk segment, a category currently dominated by loose unorganised milk in the Kampala market, as well as an expanded yogurt operation, the capacity of which at the existing plant has been fully utilised. The project is expected to commence revenue generation by end of FY 2028-29.

Expansions

Dodla Dairy is advancing a multi-pronged expansion strategy focused on geographical diversification and high-margin product growth. The ongoing Maharashtra expansion remains a key priority, with civil works on track and approximately INR 1,060 million in capital expenditure already deployed to enhance regional procurement and sales.

Internationally, the Company is targeting the East African dairy market through a greenfield capacity expansion in Uganda, having secured 70 acres of land for a project with an estimated outlay of INR 600 million over the next two years. Orgafeed

Our wholly owned subsidiary Orgafeed manufactures and supplies nutritionally balanced cattle feed to our farmer network from manufacturing facilities at Kadapa and

Kuppam in Andhra Pradesh, with a combined capacity of 480 MTPD. Orgafeed sells directly to farmers through our procurement network, with payments netted against the value of raw milk supplied. This model strengthens farmer relationships, improves herd productivity and milk yields, and reduces procurement cost volatility for the Company. Orgafeed delivered operating revenue of INR 1,644.2 million in 2025-26, a 24% year-on-year increase, with an EBITDA margin of 13.1%. Plant utilisation remained below 50%, indicating significant headroom for volume-driven growth.

PRODUCT PERFORMANCE Milk

Liquid milk remains the largest revenue contributor for the Company. In 2025-26, consolidated milk sales volumes averaged 13.18 lakhs litres per day (LLPD), reflecting year-on-year growth supported by deeper distribution penetration in existing markets and geographic expansion into new territories, with roughly equal contribution from each source. Average consolidated milk sales realisations improved over 2024-25. Margin performance remained under pressure through much of the year as procurement costs rose sharply, driven by erratic rainfall patterns that disrupted the flush season and created an industry-wide shortage of milk supply. The consolidated average procurement cost for 2025-26 stood at INR 38.9 per litre against INR 35.4 per litre in 2024-25.

Curd

Curd is the largest contributor within the VAP portfolio. In 2025-26, consolidated curd sales volumes averaged 400.9 metric tonnes per day, reflecting year-on-year growth supported by rising health awareness and deepening penetration in urban and semi-urban markets, with summer months typically driving peak consumption.

Value-Added Products

VAP revenues grew meaningfully in 2025-26, with VAP contribution to total revenues stood at 29.2% in 2025-26, reflecting the CompanyRS.s continued focus on premiumisation and core VAP products excluding bulk sales. Total VAP sales for the year stood at INR 12,026.5 million. Curd, paneer, ghee, and ice cream were the primary drivers of this performance. Paneer emerged as a particularly strong growth driver, with daily sales volumes scaling from approximately one metric tonne to 3.5-4 metric tonnes during the year, a multi-fold increase that underscores the categoryRS.s momentum. Ghee, ice cream, and flavoured milk also delivered year-on-year growth.

New product launches during the year included Masala Paneer (paneer with infused herbs), Kacha Mango Bar (green mango flavour), a new Kulfi range, Ice Cream Balls, Family Gold Milk, and Premium Milk, reinforcing the CompanyRS.s

innovation pipeline across categories. Looking ahead, Dodla plans to expand into high-protein, low-fat, and probiotic product formats, in line with evolving consumer preferences for health-focused dairy. Products tailored specifically for e-commerce and quick commerce channels are also under development.

Bulk sales of SMP and butter declined sharply from INR 312 crores in 2024-25 to INR 86 crores in 2025-26, reflecting a strategic decision to prioritise internal requirements for high-margin value-added products (VAP). While reduced flush season surpluses limited inventory for commodity conversion, this shift was largely intentional and aimed at optimising the product mix to enhance overall gross

margins. The Company continues to focus on expanding its core retail portfolio, including curd, ghee, and lassi, to drive sustainable growth and remains committed to achieving a VAP contribution of 32-34% of revenues over the medium term.

FINANCIAL PERFORMANCE

On a consolidated basis, the Company recorded revenue of INR 41,252.01 million, EBITDA of INR 3,084.52 million (7.48% margin), and PAT ofINR 2,669.99 Mn (6.47% margin)for 2025-26. The Company maintained a net debt-free position as of 31 March 2026, with cash and cash equivalents of INR 812.35 million.

Performance Review

(All amounts in INR million unless stated otherwise)

Particulars	2024-25	2025-26
Revenue from Operations	37,200.65	41,252.01
Other Income	532.94	603.70
Total Income	37,733.59	41,855.71
Total Expenses	34,175.81	39,024.28
Profit before Share of Equity Accounted Investee, exceptional items and Tax	3,557.78	2,831.43
Exceptional item	-	24.83
Profit before Tax	3,557.78	2,806.60
Total Tax Expense/(Credit)	958.48	136.61
Profit for the Year	2,599.30	2,669.99
Earnings per Share (in INR)	43.27	44.26

Key Ratios (Standalone)

Ratios	2024-25	2025-26	Change (%)	Reasons for Variance
Current Ratio	3.90	2.62	(32.73)	Change is on account of decrease in investments in the current year
Debt-Equity Ratio	0.01	0.01	2.71	NA
Debt Service Coverage Ratio	71.41	56.75	(20.53)	NA
Return on Equity (ROE)	21.30%	16.43%	(22.86)	NA
Inventory Turnover Ratio	10.41	24.71	137.37	Change is on account of decrease in average inventories in the current year
Trade Receivables Turnover Ratio	321.64	294.75	(8.36)	NA
Trade Payables Turnover Ratio	17.85	19.87	11.35	NA
Net Capital Turnover Ratio	5.50	9.26	68.38	Change is on account of decrease in investments in the current year
Net Profit Ratio	7.39%	6.67%	(9.70)	NA
Return on Capital Employed	25.69%	15.64%	(39.13)	Change is on account of decrease in operational profits during the current year
Return on Investment (Mutual Funds)	7.83%	6.63%	(15.32)	NA
Return on Investment (Bonds and Debentures)	7.20%	7.12%	(1.10)	NA

HUMAN RESOURCES

We invest in our workforce through structured training programmes, competency-building workshops, and engagement initiatives that support professional growth and a performance-oriented culture. We remain committed to building a workplace that is inclusive, safe, and merit-driven.

During 2025-26, the Company made meaningful headcount additions at procurement, sales, and plant levels in line with volume growth ambitions and in preparation for the Maharashtra expansion. The OSAM workforce was successfully onboarded and integrated within a short timeframe following the acquisition. As of 31 March 2026, Dodla Dairy employed 3,350 permanent employees across its India and international operations.

RISK AND MITIGATION

At Dodla, a board-approved risk management policy forms the foundation of our Enterprise Risk Management framework, which is applied consistently across the organisation. This policy establishes the parameters for identifying, assessing, monitoring, and managing risks in accordance with applicable regulations and industry best practices. The risk landscape and corresponding mitigation strategies are detailed in the table below.

Risks	Description	Mitigation Strategy
Economic Risk	Economic volatility, including inflation, exchange rate fluctuations, and changes in consumer purchasing power, can impact our profitability.	Suggestion: The Company actively monitors input cost trends, particularly milk procurement costs during lean seasons, and adjusts selling prices in line with prevailing industry norms across markets. When necessary, it implements price increases to pass on higher costs while maintaining margin stability. The Company also leverages the strong recovery in demand to support these pricing adjustments.
Supply Chain Risks	Our operations rely heavily on a stable supply of raw materials such as milk, packaging materials, and other inputs. Any supply chain disruptions can affect our production.	We diversify our supply sources, foster strong partnerships with farmers, and establish contingency plans to address potential natural disasters.
Intense Competition	The dairy industry is highly competitive, with both organised and unorganised players offering similar products. This can create pressure on our pricing and market share.	Strengthen brand through consistent quality, focused marketing, and expansion of value-added products. Grow distribution via modern retail, quick commerce, and DRPs. Ensure strong cold chain and drive market penetration.
Strategic Risk	Strategic risks are challenges that can disrupt the core assumptions of our business strategy. They include risks to strategic positioning, execution, and choices, ultimately impacting our ability to achieve our objectives.	To maintain a competitive edge, we focus on strategic decision-making. This includes increasing VAPsRS. contribution to annual revenue, forming e-commerce partnerships, identifying market gaps, and expanding into new geographies. We also implement region-specific pricing and discount strategies. Simultaneously, we enhance our brand presence through targeted marketing activities across television, social media, and Below-the-Line (BTL) initiatives.
Changing Customer Preferences	Our customersRS. preferences can shift rapidly. To stay ahead, we prioritise predicting and adapting to these changes, secure a first-mover advantage and capitalise on opportunities to grow our market share.	At Dodla Dairy, we conduct regular market research to understand evolving consumer preferences. This helps us stay ahead of the competition, develop innovative products, and refine our strategies to meet customer expectations effectively.
Quality Control Issues	Maintaining the quality and safety of our products is critical for customer trust and regulatory compliance. Any lapse can severely impact our reputation.	We follow stringent quality control measures across all stages of production and distribution. Regular audits, investments in technology, and employee training help us maintain high standards.

Risks	Description	Mitigation Strategy
Health and Safety Risk	Working in dairy processing facilities involves handling hazardous substances, operating heavy machinery, and facing fire-related risks. Any breaches in safety protocols can result in accidents, injuries, or regulatory penalties, affecting employee wellbeing and operational efficiency.	We conduct regular inspections of our fire hydrant system and perform pressure tests on equipment like boilers, ammonia receivers, and sterilisers through third-party audits. Additionally, we ensure that warning signs and escape route information are prominently displayed, especially in areas where hazardous substances are handled.
Regulatory Compliance	Regulatory risks include potential fines, litigation costs, and enforcement actions due to changes in the legal and regulatory changes, conflict of interest, or compliance breaches.	We actively monitor all regulatory and statutory compliance through our compliance tracker, Compliance Manager. Our internal quality standards exceed the requirements set by the Food Safety and Standards Authority of India (FSSAI), ensuring a higher level of quality assurance. Our Quality Assurance Manual aligns with BIS, FSSAI, and aGmARK standards, outlining rigorous testing and verification procedures. Furthermore, we follow a structured process for managing advertisements and promotional campaigns, ensuring all marketing activities comply with the Advertising Standards Council of India (AsCI) Code.
Operational Risk	Operational risks arise from potential breakdowns or inefficiencies in our processes, which could result from control failures or weaknesses in process design, leading to material exposure.	To enhance operational resilience, we have identified alternative vendors for production equipment, ensuring continuity in case of equipment failure. Our Corporate Office houses a robust complaint redressal mechanism to promptly address and resolve issues, minimising operational disruptions. As part of our commitment to quality, we conduct stringent sample-based testing in line with our internal Standard Operating Procedures (SOPs), including drop impact tests, leakage tests, and thermal shock tests. These measures uphold the highest quality standards for our products.
Technology Risk	With the increasing use of technology in operations, any system failure or cyberattack could impact our efficiency and data security.	We prioritise investments in robust IT infrastructure and cybersecurity measures. Regular system upgrades and employee awareness programmes help us stay ahead of technological risks.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company maintains a well-structured internal control framework designed to support operational discipline, reliable financial reporting, effective asset protection, and adherence to statutory and regulatory obligations. Controls are calibrated to the scale, complexity, and geographic spread of our operations across India, Uganda, and Kenya. Defined policies and standard operating procedures govern day-to-day operations, with clear accountability assigned to unit and functional heads.

Internal audits are conducted on a continuous basis following a risk-based annual plan approved by the Audit Committee. Findings are presented to the Audit and Risk Management Committees on a quarterly basis, with a half-yearly review undertaken to identify control gaps and implement remedial measures. The Board of Directors reviews these reports as part of its governance oversight role.

The Company maintains structured communication channels across all organisational levels to facilitate timely decision-making and reinforce control effectiveness. The Code of Conduct is reviewed and updated regularly, with prompt action taken on any reported violations. These collective measures support sound governance, ethical conduct, and long-term value creation for all stakeholders.

CAUTIONARY STATEMENT

The Management Discussion and Analysis Report contain statements concerning the CompanyRS.s objectives, projections, estimates, expectations, or predictions that may be characterised as forward-looking statements under applicable laws and regulations. Readers are cautioned that actual results could differ materially from those expressed or implied in such statements. The Company does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments, or any other circumstances.