The global economy in FY 2025-26 demonstrated continued resilience despite persistent headwinds. According to the IMF s April 2025 World Economic Outlook, global growth moderated to approximately 3.4% in 2025 , with projections of 3.1% in 2026 and 3.2% in 2027 . The World Bank s January 2026 estimates were more cautious, placing global growth at around 2.7% for 2025-2026 .
Inflationary pressures eased gradually as monetary tightening and improving supply chains contributed to greater price stability, although central banks remained cautious on interest rate reductions. Financial markets experienced volatility driven by geopolitical developments, trade realignments and changing monetary policy expectations. Commodity and energy markets remained sensitive to global supply-demand dynamics and regional conflicts.
In agribusiness and contract farming, demand for sustainably sourced and traceable agricultural produce intensified. There was an accelerated global shift toward localised and climate-resilient farming practices, driving companies and governments to adopt more sustainable supply chain models. Contract farming emerged as a strategic solution by bridging farmers and corporations through structured engagements and predictable returns.
Emerging markets, particularly in Asia and Africa, continued to witness rising contract farming adoption, supported by technological interventions, favourable policies and growing awareness about fair pricing and risk-sharing. However, challenges such as extreme weather events, fluctuating input costs (fertilisers, seeds and water), trade policy uncertainty and transportation disruptions affected productivity and logistics globally.
Integrated models like those employed by Franklin Industries Limited - involving leased cultivation, contract farming and direct supply chain control - helped mitigate many of these risks, enabling more predictable operations and improved margins. Looking ahead, the global contract farming sector is expected to grow steadily, driven by food security needs, sustainability and enhanced farmer incomes.
India recorded GDP growth of 6.5% in FY 2024-25 , moderating from 8.2% in FY 2023-24 , according to IMF estimates. The Indian economy is expected to grow at 6.6% in FY 2025-26 and 6.7% in FY 2026-27 , according to United Nations forecasts. Growth is being driven by rapid infrastructure development, a strong manufacturing push, supportive policy reforms and resilient consumer confidence.
The agriculture sector, a critical component of India s economic framework, showed moderate growth. Favorable monsoon conditions in most parts of the country and government initiatives promoting sustainable agricultural practices and agri-infrastructure development contributed to improving rural incomes and productivity. However, uneven rainfall distribution, rising input costs and supply chain disruptions due to geopolitical tensions and inflationary pressures continued to impact overall agricultural performance.
Contract farming and agribusiness gained increased traction in India, driven by policy support and the growing need for organised, scalable and market-linked farming solutions. The government s continued focus on doubling farmers income, promoting Farmer Producer Organizations (FPOs) and digitalisation in agriculture encouraged companies like Franklin Industries Limited to play a pivotal role in integrating smallholder farmers into modern supply chains.
The emergence of Public-Private Partnerships (PPPs) in agriculture, coupled with increased awareness around traceability, food safety and export potential, further reinforced the importance of structured farming models. With India s focus on food security, reducing rural distress and promoting climate-resilient farming, the contract farming sector is expected to grow significantly in the coming years.
The Indian agriculture industry continued to evolve during FY 2025-26, contributing approximately 18 - 19% to national GDP and employing nearly 45% of the workforce . Despite global uncertainties and domestic challenges, the sector remained relatively resilient, supported by broadly favourable monsoon conditions, targeted government interventions and increased private sector participation.
In FY 2025-26, agricultural production was moderately impacted by regional variations in monsoon patterns and climate-related stress in certain states. However, key crop output remained stable, especially in horticulture, oilseeds and pulses. Rising input costs (fertilisers, seeds and energy), transportation disruptions and global commodity fluctuations created margin pressures for small and marginal farmers.
The government s continued push toward agricultural modernisation - through schemes such as PM-KISAN, Agri Infrastructure Fund and support for FPOs - encouraged organised and technology-driven farming. Adoption of precision agriculture, real-time monitoring and AI-driven advisory services began enhancing productivity and reducing input costs in several regions.
Looking ahead, the Indian agriculture industry is poised for transformation driven by sustainability, digitalisation and value-added supply chains. Franklin Industries Limited, through its focus on contract cultivation of crops like Cucumber, Onion and Castor , and farmer collaboration on leased land, is well-positioned to capitalise on these opportunities while contributing to rural prosperity and food security.
India has the second-largest arable land resources in the world. With 20 agri-climatic regions, all 15 major climates in the world exist in India. India remains the largest producer of spices, pulses, milk, tea, cashew and jute, and the second-largest producer of wheat, rice, fruits and vegetables, sugarcane, cotton and oilseeds. India is also second in global production of fruits and vegetables.
Food grain production in India continued to grow steadily, with the government targeting further increases through investments in irrigation, seed technology and supply chain infrastructure. Consumer spending rebounded post-pandemic, and private consumption expenditure continued to expand, supporting demand for agricultural produce.
The broader economic environment presents several challenges. India is navigating complex issues related to economic growth, asset quality, inflationary pressures and fiscal discipline. Growth trends have shown signs of moderation, and sustained recovery will depend largely on transparent, timely and decisive policy action - elements largely outside the control of private enterprises, including those in agribusiness and food grains trading. India must continue to demonstrate consistency and clarity in its policies to retain its position as a leading emerging market investment destination.
Opportunities:
? Rising Demand for Food: With a growing population, demand for food and better seeds will continue to drive the need for organised agribusiness models.
? Favourable Government Policies: Agricultural modernisation, infrastructure development, FPO support and digital agriculture initiatives present strong opportunities. Schemes such as PM-KISAN, Agri Infra Fund and promotion of public-private partnerships support the Companys model.
? Technology Adoption: Precision agriculture, real-time monitoring and AI-driven advisory services can enhance productivity, reduce input costs and improve decision-making.
? Export Potential: The Companys ability to ensure consistent quality and supply opens up lucrative export opportunities, especially for crops like onion and castor, which are in global demand.
? Scalable Business Model: Leasing agricultural land and partnering with farmers opens doors to diversify into new geographies and high-value crops, reducing dependence on a narrow crop portfolio and improving risk management.
Threats:
The Company operates in only one segment , i.e., trading and distributing agricultural products . Therefore, segment-wise reporting is not required. The turnover of the Company for FY 2025-26 was Rs. 2,524.86 Lakhs .
The Company presents the analysis for FY 2025-26 and its outlook for the future. This outlook is based on assessment of the current business environment and may vary due to future economic and other developments, both in India and abroad.
Franklin Industries Limited remains committed to expanding its contract farming footprint, leveraging technology for improved yields and strengthening partnerships with farming communities. The Company will continue to focus on high-value crops and explore new geographies to ensure sustainable and profitable growth.
Risk Management is an integral part of the Company s business strategy. A dedicated team is part of management processes governed by the senior management team. This team reviews compliance with risk policies, monitors risk tolerance limits, reviews and analyses risk exposure related to specific issues and provides oversight of risk across the organisation. The team nurtures a healthy and independent risk management function to avoid any kind of misappropriation.
As part of the Risk Management framework, management of Credit Risk, Market Risk, Operational Risk and Fraud Risk is placed under the Head - Risk. The Credit Risk management structure includes separate credit policies and procedures for various businesses.
The Company has taken adequate preventive and precautionary measures to overcome negative factors responsible for low trends and to ensure steady growth. It has implemented proper systems for safeguarding operations/business, through which assets are verified, frauds and errors are reduced, and accounts and related information are maintained to ensure timely completion of financial statements.
The Company has adequate systems of internal controls commensurate with its size and operations to ensure orderly and efficient conduct of business. These controls ensure safeguarding of assets, reduction and detection of fraud and error, adequacy and completeness of accounting records, and timely preparation of reliable financial information. The requirement of an internal auditor as compulsory by statute for listed and other prescribed classes of companies further strengthens internal control measures.
The financial performance of the Company for FY 2025-26 is described in the Directors Report of the Company.
The cordial employer-employee relationship continued during the year under review. The Company continued to give special attention to human resources.
During the year, there were no material financial or commercial transactions .
Statements made in the Management Discussion and Analysis describing various parts may be forward-looking statements within the meaning of applicable securities laws and regulations. Actual results may differ from those expectations depending upon economic conditions, changes in government regulations, amendments in tax laws and other internal and external factors.
| Registered Office: Road, Prahlad | By the Order of the Board of | |
| A-207, Rasta, Nagar, Ahmedabad, Corporate Satellite, Jodhpur Gujarat, India, Char | Franklin Industries Limited | |
| 380015. | ||
| Sd/- | Sd/- | |
| Ashishkumar Kapadiya | Maheshkumar Patel | |
| Place: Ahmedabad th | Director | Managing Director |
| Date: 7 August, 2026 | DIN: 10212557 | DIN: 10872459 |
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
Download The App Now
Follow us on
2026, IIFL Capital Services Ltd. All Rights Reserved
IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132 (Member ID - NSE: 10975 BSE: 179 MCX: 55995 NCDEX: 01249), DP SEBI Reg. No. IN-DP-185-2016, IA SEBI Regn. No: INA000000623, Merchant Banker SEBI Regn. No. INM000010940, RA SEBI Regn. No: INH000000248, BSE Enlistment Number (RA): 5016, AMFI-Registered Mutual Fund Distributor & SIF Distributor
ARN NO : 47791 (Date of initial registration – 17/02/2007; Current validity of ARN – 08/02/2027), PFRDA Reg. No. PoP 20092018, IRDAI Corporate Agent (Composite) : CA1099
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.
