Elfin Agro India Ltd Management Discussions

Industry Structure and Developments

Indias agro-processing industry continues to play a vital role in the countrys food security, rural employment generation, and value-added agricultural production. Rising population, increasing urbanization, changing consumption patterns, and growing demand for packaged food products have contributed to sustained growth in the flour milling and edible oil segments.

Government initiatives supporting food processing, agricultural infrastructure, supply chain modernization, and rural development have further strengthened the industrys long-term growth prospects. However, the sector remains exposed to fluctuations in agricultural commodity prices, climatic conditions, logistics costs, and regulatory changes.

The wheat flour and edible oil markets continue to witness increasing demand from households, retail chains, institutional buyers, and food service operators. Consumers are increasingly preferring branded, hygienically processed, and quality-certified food products, creating opportunities for organized players in the industry.

Government Initiatives

Over the years, the Indian government has introduced many initiatives to strengthen the nations economy. The Indian government has been effective in developing policies and programmes that are not only beneficial for citizens to improve their financial stability but also for the overall growth of the economy. Over recent decades, Indias rapid economic growth has led to a substantial increase in its demand for exports. Besides this, several of the governments flagship programmes, including Make in India, Start-up India, Digital India, the Smart City Mission, and the Atal Mission for Rejuvenation and Urban Transformation, is aimed at creating immense opportunities in India. In this regard, some of the initiatives taken by the government to improve the economic condition of the country are mentioned below:

On July 5, 2025, the Union Cabinet approved the Rs. 1,00,000 crore (US$ 11.72 billion) Research, Development and Innovation (RDI) Scheme, launching long-term, low- or zero-interest funding via a special purpose fund under the ANRF to jump-start Indias R&D ecosystem and support deep-tech and startup innovation.

On March 27, 2025, the Reserve Bank of India proposed doubling the investment cap for individual foreign investors in listed firms from 5% to 10%, with a combined foreign individual limit increasing to 24%, to counter Foreign Portfolio Investment (FPI) outflows.

Opportunities and Threats

Opportunities: The Company continues to benefit from the rising domestic and international demand for processed agricultural products. This growth is further supported by government initiatives focused on promoting the food processing sector and strengthening agri-infrastructure, which create a favorable environment for expansion and long-term business development. The Company also has significant opportunities to expand into new geographical markets and customer segments. In addition, the adoption of advanced technologies to improve operational efficiency, along with the strengthening of its distribution network and customer relationships, is expected to support sustainable growth and enhance competitiveness.

Threats: The Companys operations remain exposed to risks arising from fluctuations in the prices and availability of raw materials, which may be affected by seasonal variations and climatic conditions. The business also faces intense competition from both organized and unorganized players, which may impact margins and market share. Further, changes in government policies, taxation, and the regulatory framework may affect the Companys operations and profitability. Volatility in transportation and logistics costs, as well as uncertainties in foreign exchange rates and export markets, may also have an adverse impact on the Companys financial and operational performance.

Product-wise Quantity and Revenue Comparison

The following table presents the Companys product-wise sales performance over the last three financial years, indicating the quantity sold and revenue generated from each product category. The analysis reflects changes in the product mix, customer demand, and operational performance during the period.

ITEM SUB GROUP	Qty (2024-25)	Amount ( Lakhs)	Qty (2025-26)	Amount ( Lakhs)
BRAN	98,686	2,141.09	1,13,456	2,456.52
CHAKKI AATA	52,054	1,565.07	52,342	1,525.39
CATTLE FEED
CHANA	19,870	1,216.45	2,730	162.37
GROUNDNUT OIL	1,315	183.18	2,533	376.07
MAIDA	1,26,510	3,987.27	1,46,236	4,338.40
MAKKA	174	4.71	25,275	499.8
MUSTARD OIL	16,674	2,088.21	30,374	4,383.92
MUSTARD OIL CAKE	26,019	642.2	48,670	1,250.12
MUSTARD SEEDS			9,544	611.26
PACKING MATERIAL	26,785	3.66	49,600	5.38
R AATA	20,652	645.36	18,886	538.31
RICE BRAN REFINED	201	22.49
OIL
SOOJI	9,064	303.48	12,121	383.52
SOYA REFINED OIL	2,352	253.84	300	38.57
SOYABEAN SEEDS			9,798	439.91
TANDOORI AATA	12,595	403.26	15,490	472.85
WHEAT	38,010	1,126.07	7,271	195.3
WHEAT DALIYA
GRAND TOTAL	4,50,962	14,586.34	5,44,626	17,677.68

Activity-wise Performance

The Company is primarily engaged in the business of manufacturing and trading of agro products and operates substantially in a single reportable business segment. Accordingly, segment-wise reporting is not applicable.

During FY 2025-26:

• Manufacturing revenue stood at 15,043.86 lakhs. ? Trading revenue stood at 2,633.81 lakhs.

• Total revenue from operations increased by approximately 21.19% over the previous financial year.

The Company continued to focus on improving operational efficiency and product quality while maintaining strong customer relationships.

Business Overview and Outlook

Elfin Agro India Limited is engaged in the manufacturing and trading of agro-based products. The Company manufactures and markets a range of products including:

• Chakki Atta (High Fibre Whole Wheat Flour)

• Refined Wheat Flour (R Atta)

• Tandoori Atta

• Sooji (Semolina)

• Maida (Refined Flour)

• Yellow Mustard Oil

The Company markets its products under the brands "Shiv Nandi" and "ELFINS Shri Shyam BHOG" and caters to wholesalers, retailers, traders, institutional customers, and individual consumers across multiple states.

The Company operates processing facilities in Bhilwara, Rajasthan, and has continuously focused on strengthening its manufacturing capabilities, operational efficiency, and market presence.

The Company intends to strengthen its distribution network, improve brand visibility, enhance production efficiency, and explore new product offerings to capitalize on emerging market opportunities.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

Particulars	2023	2024	2025	2026
Revenue from Operations ( Lakhs)	10,139.02	12,445.92	14,586.34	17,677.68
Revenue Growth (%)		22.75%	17.20%	21.19%
Revenue CAGR (2023 2026)	20.39%
EBITDA ( Lakhs)	375.63	628.89	809.45	967.25
EBITDA Margin (%)	3.43%	4.73%	5.22%	5.18%
EBITDA CAGR (2023 2026)	38.07%
Profit Before Tax (PBT) ( Lakhs)	315.35	516.38	674.84	771.04
PBT Margin (%)	3.11%	4.15%	4.63%	4.36%
Profit After Tax (PAT) ( Lakhs)	240.83	383.66	503.03	576.98
PAT Margin (%)	2.38%	3.08%	3.45%	3.26%
PAT CAGR (2023 2026)	33.86%
Net Worth ( Lakhs)	511.24	872.83	1,375.85	4,357.32
Return on equity	0.37	0.52	0.45	0.20
Return on investment	0	0	0	0
Book Value	36.26	61.90	9.76	22.43
Earing Per Share	13.45	25.64	3.57	4.01

During FY 2025-26, the Company delivered satisfactory operational and financial performance.

The Companys revenue from operations increased by approximately 21.19%, while Profit After Tax increased by approximately 14.70% during the year. The improvement was primarily driven by higher sales volumes, better operational performance and continued focus on cost optimisation. Further, the Company successfully completed its Initial Public Offer (IPO) during the year, resulting in strengthening of its capital base and improvement in overall financial position.

Material Developments in Human Resources / Industrial Relations

The Company firmly believes that its employees are its most valuable asset and continues to invest in employee development, training and welfare. The Company recognizes its employees as its most valuable asset and continues to focus on creating a productive and performance-oriented work environment. The Company promotes a culture of integrity, teamwork, safety, and continuous learning. Training and skill-development initiatives are undertaken regularly to enhance employee capabilities and improve operational excellence.

Industrial relations remained cordial throughout the financial year. The management maintained a healthy working environment with continuous emphasis on safety, productivity and employee engagement.

As on March 31, 2026, the Company had 23 employees on its rolls.

(i) Significant Changes (25% or more) in Key Financial Ratios

Ratio	FY 2025-26	FY 2024-25	% Change	Explanation
Inventory Turnover Ratio	11.05	16.32	(32.29%)	Inventory levels increased during the year to support higher business operations and future demand.
Interest Coverage Ratio	6.33	8.86	(28.56%)	Finance costs increased owing to higher utilisation of working capital facilities and borrowings during the year.
Current Ratio	5.72	1.28	346.88%	Significant improvement due to IPO proceeds, higher cash balances and repayment of short-term borrowings, resulting in stronger liquidity.
Debt Equity Ratio	0.07	0.89	(92.13%)	Reduction due to substantial increase in shareholders equity following the IPO and repayment of debt.

Only those ratios showing a variation of 25% or more have been explained in detail in accordance with Schedule V of the SEBI (LODR) Regulations.

(ii) Change in Return on Net Worth

The Return on Net Worth (Return on Equity) decreased from 45% in FY 2024-25 to 20% in FY 2025-26, representing a decline of approximately 55.56%. The decrease is primarily attributable to the significant increase in shareholders equity following the Companys Initial Public Offer (IPO). Although the Company reported higher profitability during the year, the increase in the equity base was substantially higher, resulting in a lower Return on Net Worth.

Risks and Concerns

The Companys business is subject to various risks, including:

Raw Material Price Volatility

Prices of wheat, mustard seeds, and other agricultural commodities are influenced by crop production, weather conditions, government policies, and market dynamics.

Supply Chain Risks

Transportation disruptions, logistics constraints, and availability of raw materials may affect production and distribution activities.

Regulatory Risks

Changes in food safety regulations, taxation policies, environmental norms, and agricultural regulations may impact operations.

Competition

The Company faces competition from regional and national players operating in flour milling, edible oil, and agro-processing businesses.

Inflationary Pressures

Rising fuel, packaging, transportation, and labor costs may affect operating margins. The Company continuously monitors these risks and adopts suitable mitigation measures through prudent procurement practices, inventory management, operational controls, and market diversification.

Internal Control Systems and Their Adequacy

The Company has established an adequate internal control system commensurate with the size, scale and nature of its business operations. The internal control framework is designed to safeguard the Companys assets, ensure the accuracy and reliability of financial reporting, facilitate compliance with applicable laws and regulations, promote efficient utilization of resources, and prevent and detect frauds and errors. These controls are periodically reviewed to ensure their effectiveness and alignment with the Companys operational and strategic objectives.

The Company has well-defined internal control procedures covering key business processes, including procurement of raw materials and stores, management of fixed and other assets, sales of goods, human resource management, quality control, and operational activities. The adequacy and effectiveness of these controls are regularly reviewed by the Internal Auditor, whose observations and recommendations are placed before the Audit Committee. Based on the recommendations of the Audit Committee and the guidance of the management, necessary corrective actions are implemented on a timely basis to further strengthen the internal control framework and ensure its consistent and effective operation across the organization.

Disclosure of Accounting Treatment

The financial statements of the Company for the financial year ended March 31, 2026 have been prepared in accordance with the applicable Accounting Standards, as applicable, the provisions of the Companies Act, 2013 and other applicable statutory requirements. The Company has followed the accounting policies consistently and there has been no deviation from the prescribed accounting standards in the preparation of the financial statements. The financial statements present a true and fair view of the state of affairs of the Company, its profit and cash flows for the financial year ended March 31, 2026

Cautionary Statement

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations, or predictions may be forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied due to various factors including economic conditions, government policies, commodity price movements, market demand, competitive pressures, and other risks beyond the Companys control. The Company undertakes no obligation to publicly update or revise any forward-looking statements.

For and on behalf of the Board of Directors
ELFIN AGRO INDIA LIMITED
Sd/-	Sd/-
Mr. Deepak Pal Daga	Mr. Vimal Kumar Daga
Managing Director	Whole Time Director
DIN: 05173273	DIN: 07953851
Date: 21/07/2026
Place: Bhilwara