Goyal Salt Ltd Management Discussions

for the Financial Year ended 31 st March, 2026

The Management Discussion and Analysis Report has been prepared in accordance with the provisions of Regulation 34(2)(e) of Listing Regulations, read with Schedule V(B) thereto, with a view to provide an analysis of the business and Financial Statements of the Company for FY-2025-26 and should be read in conjunction with the Companys financial statements, the schedules and notes thereto and other information included elsewhere in the Annual Report. The objective of this report is to convey the Managements perspective on the external environment and our industry, as well as strategy, operating and financial performance, material developments in human resources and industrial relations, risks and opportunities in the Company during the FY 2025-26. The Companys financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) complying with the requirements of the Companies Act, 2013, as amended and regulations issued by the Securities and Exchange Board of India (SEBI) from time to time.

COMPANY OVERVIEW

Goyal Salt Limited (Formerly known as Goyal Salt Private Limited) is situated at Plot No. 229-230, Guru Jambeshwar Nagar, Lane No. 7, Gandhi Path, Vaishali Nagar, Jaipur-302021, Rajasthan. The Company is engaged in the manufacturing and supply of a wide range of salt products, including Triple Refined Free Flow Iodised Salt, Triple Refined Free Flow Industrial Salt, Double Fortified Salt (Iron Plus Iodine) and various other grades of industrial and edible salt. The Company operates three factory units, including two units at Nawa, Rajasthan, and Unit III at Gandhidham, Gujarat. The Gandhidham facility, spread across approximately 12 acres, has production capacity of 1500 MT per day. The Companys aggregate installed production capacity is approximately 2600 MT per day providing a strong platform to cater to increasing domestic retail, industrial and export requirements.

GLOBAL SALT INDUSTRY OVERVIEW

The global salt industry remained an important component of the food, chemical and industrial sectors during FY 2025-26. Salt, primarily consisting of sodium chloride (NaCl), is an essential mineral with widespread applications across food processing, chemical manufacturing, water treatment, agriculture, pharmaceuticals and other industrial activities.

According to recent industry estimates, the global salt market was valued at approximately USD 26.92 billion in 2025 and is projected to reach approximately USD 27.90 billion in 2026 and USD 39.38 billion by 2034, representing a CAGR of around 4.4% during 2026-2034. Asia Pacific accounted for approximately 46.5% of the global salt market in 2025, making it the leading regional market.

The demand for salt continues to be supported by its essential role in food consumption and by strong industrial demand. In particular, the chemical manufacturing sector, especially the chlor-alkali industry, remains a major consumer of salt as a key raw material for the production of chlorine and caustic soda. Industrial applications, water treatment, food processing and other end-use industries are expected to continue supporting overall market demand.

The industry, however, remains exposed to certain challenges, including fluctuations in energy and transportation costs, weather conditions affecting solar salt production, environmental considerations, regulatory requirements and variations in industrial demand. Nevertheless, the essential nature of salt and its diversified applications provide structural stability to the industry.

INDIAN SALT INDUSTRY OVERVIEW

India continues to be one of the worlds major salt-producing countries, with the industry serving both domestic consumption and industrial requirements. The Indian salt industry has a diversified production base comprising solar salt obtained through evaporation of seawater and brine, as well as rock salt and other sources.

The production of salt in India is concentrated primarily in Gujarat, Rajasthan and Tamil Nadu. According to the Salt Commissioner Organisation, Ministry of Commerce & Industry, Government of India, these three states together account for approximately 98.8% of Indias total salt production, with Gujarat contributing around 87.4%, Rajasthan around 6.7% and Tamil Nadu around 4.7%. These states also produce surplus salt that caters to the requirements of other parts of the country for edible as well as industrial consumption.

The Indian salt industry benefits from Indias extensive coastline, favourable climatic conditions for solar evaporation and availability of salt-producing areas. Gujarat remains the dominant production centre, while Rajasthan has an important position in inland salt production. The industry caters to a broad range of applications, including edible salt, chlor-alkali manufacturing, chemical processing, water treatment, animal feed, pharmaceuticals and other industrial uses.

INDUSTRY OVERVIEW

The outlook for the salt industry remains broadly stable, supported by the essential nature of salt and its diversified end-use applications. Growth in food processing, chemical manufacturing, water treatment and other industrial activities is expected to provide continued demand for salt. The growing requirement of chlorine and caustic soda in chemical manufacturing is also expected to remain an important demand driver.

At the same time, producers are required to focus on operational efficiency, quality consistency, cost management, supply-chain resilience and compliance with applicable regulatory and environmental requirements. Weather conditions, logistics costs and fluctuations in industrial demand may continue to influence production and realisations.

Overall, the Indian salt industry is expected to maintain a stable growth trajectory, supported by strong domestic demand, established production infrastructure and the countrys position as a major salt-producing and exporting nation.

BUSINESS OVERVIEW

Goyal Salt Limited traces its origins to the year 1985, when the business commenced under the name Goyal Iodised Salt Works. Over the years, the Company has established itself as an experienced manufacturer and dealer of various grades and varieties of Sodium Chloride (NaCl), catering to both industrial and edible salt requirements.

The Company manufactures and supplies industrial as well as edible salt for diverse applications. Its products cater to the requirements of customers across various industries, including chemical, dye and textile, detergent and soap, cattle feed, leather, power generation, oil and gas, food processing and other industrial sectors.

The Companys operations are supported by a team of experienced professionals having expertise across chemical, mechanical, technical and commercial functions. The management and technical teams remain focused on maintaining consistent product quality, meeting customer specifications and developing customised grades of sodium chloride to address the requirements of different industrial applications.

The Company has progressively strengthened its manufacturing infrastructure and has installed and upgraded its plant with modern technology and equipment required for salt processing and refining. Appropriate internal quality-control systems have been established across the production process to ensure consistency in product quality and compliance with prescribed specifications.

With a diversified product portfolio comprising different grades and specifications of sodium chloride, the Company is positioned to cater to a broad customer base across multiple end-use industries. Its experience in salt manufacturing, processing and marketing, together with its established customer relationships, provides a strong foundation for continued business growth.

INDUSTRY STRUCTURE AND DEVELOPMENTS

The salt industry serves a wide range of edible and industrial applications and is characterised by seasonal production and sensitivity to climatic conditions.

During FY 2025-26, the Companys operations benefited from the commencement of commercial production at its new Gujarat facility. The Company is presently focused on progressively improving the utilisation of the expanded manufacturing capacity, strengthening its customer base and optimising production and logistics costs. The new unit strengthens the Companys manufacturing base and provides additional capacity to support future growth.

The Company continues to focus on operational efficiency, quality, capacity utilisation and market development in line with evolving industry requirements.

OPPORTUNITIES AND THREATS Opportunities

The Company sees opportunities in:

Increasing utilisation of its manufacturing capacities;

Expansion of its customer and geographical base;

Growth in refined and value-added salt products;

Increasing demand from food processing and industrial sectors; and

Improving operational efficiencies and product mix.

Threats

The key challenges faced by the industry and the Company include:

Climatic and weather-related risks;

Availability and price fluctuations of raw salt;

Competitive intensity;

Volatility in transportation, energy and other operating costs;

Working capital requirements; and

Changes in applicable regulatory requirements.

The Company seeks to mitigate these risks through procurement planning, inventory management, geographical presence, operational controls and prudent financial management.

SEGMENT-WISE / PRODUCT-WISE PERFORMANCE

The Company operates predominantly in a single business segment, i.e. manufacturing and refining of salt. Accordingly, separate reportable segment-wise financial information is not applicable.

Revenue from Operations increased to 19,960.24 lakh in FY 2025-26 from 12,997.20 lakh in FY 2024-25, registering a growth of approximately 53.58%.

The growth was supported by increased scale of operations and the commencement of commercial production at the Companys Gujarat facility.

OUTLOOK

The management remains cautiously optimistic about the Companys long-term prospects.

The Companys presence across Rajasthan and Gujarat and the commissioning of the new Gujarat manufacturing facility provide a platform for further capacity utilisation and market expansion.

The Company will continue to focus on:

Capacity utilisation;

Product and market diversification;

Operational efficiency;

Cost optimisation;

Working capital management; and

Sustainable and profitable growth.

The management will continue to monitor market conditions and pursue growth opportunities while maintaining financial discipline.

RISKS AND CONCERNS

The Companys operations are exposed to climatic, raw material, market, operational, financial and regulatory risks.

Salt production is sensitive to climatic conditions, while fluctuations in raw material availability and prices may affect operating margins. The Companys expanded operations also require effective management of working capital and financing costs.

The Company manages these risks through procurement planning, inventory management, customer diversification, financial monitoring and appropriate internal controls.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has established internal financial controls commensurate with the size and nature of its operations. The controls are designed to safeguard assets, ensure accuracy and completeness of accounting records, support reliable financial reporting, prevent and detect errors and frauds, and ensure compliance with applicable policies and regulations.

The Statutory Auditors have reported that the Company had, in all material respects, an adequate internal financial controls system over financial reporting and that such controls were operating effectively as at 31st March, 2026.

The Company also has an internal audit system commensurate with the size and nature of its business.

FINANCIAL PERFORMANCE

in lakh

Particulars	FY 2025-26	FY 2024-25
Revenue from Operations	19,960.24	12,997.20
Other Income	19.78	742.32
Profit Before Tax	1,523.68	1,730.47
Profit After Tax	1,135.26	1,324.69
Basic EPS ( )	6.34	7.40

Revenue from Operations increased by 53.58 % during FY 2025-26. However, Profit Before Tax and Profit After Tax declined by approximately 11.95% and 14.30%, respectively.

The decline in profitability was primarily attributable to the significant reduction in Other Income, higher depreciation following expansion of the asset base and increased finance costs. During FY 2024-25, the Company had earned gains from the sale of certain investments, which had contributed favourably to Other Income and consequently to the overall profitability. In FY 2025-26, the Company undertook comparatively lower investment sales and, in respect of certain investments sold during the year, incurred losses. Accordingly, the reduction in PAT is mainly attributable to the lower contribution from Other Income. Finance cost increased from 59.13 lakh to 323.68 lakh during the year. The increase in finance costs was primarily attributable to increased borrowings and working capital requirements associated with the Companys expanded operations and commissioning of the new manufacturing facility.

The management continues to focus on improving operating efficiencies, capacity utilisation and profitability.

HUMAN RESOURCES AND INDUSTRIAL RELATIONS

Human resources continue to be an important contributor to the Companys operational performance and growth.

The Company maintained cordial industrial relations during the year and continued to focus on employee welfare, productivity and skill development.

Employee benefit expenses increased to 442.43 lakh in FY 2025-26 from 261.20 lakh in FY 2024-25.

Number of employees as at 31st March, 2026 is 90.

KEY FINANCIAL RATIOS

In accordance with Schedule V of the SEBI LODR Regulations, the following key financial ratios are disclosed:

Particulars	FY 2025-26	FY 2024-25	% Change
Debtors / Trade Receivable Turnover	9.57x	7.67x	24.83%
Inventory Turnover	9.39x	13.99x	(32.88%)
Interest Coverage Ratio	5.71x	30.26x	(81.15%)
Current Ratio	1.48x	2.86x	(48.25%)
Debt Equity Ratio	0.66x	0.39x	71.84%
Operating Profit Margin	9.16%	8.06%	13.64%
Net Profit Margin	5.69%	10.19%	(44.20%)
Return on Net Worth	18.55%	27.10%	(31.55%)

Explanation of significant changes

Inventory Turnover: The ratio declined primarily due to higher average inventory maintained to support the Companys expanded operations.

Interest Coverage Ratio: The decline was mainly attributable to the substantial increase in finance costs during the year, associated with increased borrowings and working capital requirements.

Current Ratio: The ratio declined primarily due to the commencement of commercial production at the new Gujarat unit and additional short-term borrowings raised to meet its working capital requirements.

Debt Equity Ratio: The increase was primarily due to additional short-term borrowings undertaken to fund the working capital requirements of the new unit.

RETURN ON NET WORTH

Return on Net Worth declined from 27.10% in FY 2024-25 to 18.55% in FY 2025-26.

The decline was primarily attributable to lower net profit during FY 2025-26 coupled with an increase in shareholders funds. The principal factor affecting profitability was the absence of the investment gain recorded in the previous year and a loss from long-term investments during the current year. The management remains focused on improving profitability and efficient utilisation of capital to enhance shareholder returns.

CONCLUSION

In conclusion, the journey detailed within this report reflects our teams dedication, resilience, and strategic vision. As we forge ahead, delighted by opportunities and fortified against challenges, we remain dedicated in our pursuit of industry leadership and continued success. We extend our heartfelt appreciation to our dedicated workforce, valued stakeholders, and partners for their integral role in our achievements. Together, we stand assured to embrace the future with confidence and enthusiasm, ready to chart new milestones and elevate our company to greater heights.

Disclosure of Particulars of Employees, as required under Rule 5 (2) of The Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014

Disclosure of Particulars of Employees as required under

i. The ratio of the remuneration of each director to the median remuneration of the employees of the company for the financial year 2025-2026:

Sl. No. Name of Director/KMP	Designation	Ratio of Remuneration to the median of the employee	% increase in remuneration in the financial year
1. Mr. Rajesh Goyal	Chairman cum WTD	8.68	-
2. Mr. Pramesh Goyal	Managing Director	8.68	-
3. Mr. Lokesh Goyal	Whole Time Director	8.68	-
4. Mrs. Priyanka Goyal	Non-Executive Director	-	-
5. Mr. Narendra Dev Garg	Independent Director*	-	-
6. Mrs. Manisha Godara	Independent Director*	-	-
7. Mr. Amit Kumar	Chief Financial Officer	2.03	34.79%
8. Mrs. Jayanti Jha Roda	Company Secretary &	0.48	-
(Resigned w.e.f. 31/05/2025)	Compliance Officer
9. Mr. Gourishankar Boosar	Company Secretary &	1.44	-
(Appointed w.e.f. 30/08/2025)	Compliance Officer

*Sitting Fees is paid to the Independent Directors and Non-Executive Director therefore shall not be counted for this purpose

ii. The percentage increase in the median remuneration of employees in the financial year 2025-26: 7.46%

iii. The number of permanent employees on the rolls of company as on March 31 st , 2026: 90

iv. Average percentile increases already made in the salaries of employees other than the managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration:

During FY 2025-26, the managerial remuneration of directors is not increased.

v. The Company affirms that the remuneration is as per the remuneration policy of the company.

vi. Names of the top 10 employees of the Company in terms of the remuneration withdrawn in the Financial Year

2025-26: As attached Annexure-A

vii. No. of employees employed throughout the financial year who was in receipt of remuneration for the year which, in the aggregate, was not less than Rs.1.2 Crores: NIL

viii. No. of employees employed for a part of the financial year, who was in receipt of remuneration for any part of the year, at a rate which, in the aggregate, was not less than Rs. 8.5 lakhs per month: NIL ix. No. of employees employed throughout the financial year or part thereof, who was in receipt of remuneration in year which, in the aggregate, or as the case may be, at a rate which, in the aggregate, is in excess of that drawn by the managing director or whole-time director or manager and holds by himself or along with his spouse and dependent children, not less than two percent of the equity shares of the company: NIL

													Annexure-A
											The last
								Nature of				% of equity shares
											employment
								employment,		Date of		held by the
									Qualifications and		held by such
S. No.Name		Age	Designation		Gross Remuneration			whether		commencement		employee in the
									Experience of Employee		employee before		Relationship with other Director of the company
								contractual or		of employment;		company as on
											joining the
								otherwise;				31.03.2026
											company
(A)	(B)	(C)	(D)	(E)	(E1)	(F)	(G)	(H)	(I)	(J)	(K)	(L)	(M)
				Salary	Bonus	Commission	Total
													Brother of Mr. Lokesh Goyal, Whole Time
									Post Graduate
1	RAJESH GOYAL	49	Chairman cum Whole Time	18,00,000	75,000		18,75,000On Roll			26-Nov-2010	-	8.42%	Director and Mr. Pramesh Goyal, Managing
			Director						Experience: 21 yrs
													Director
													Husband of Ms. Priyanka Goyal, Non-
													Independent Non-Executive Director and
									Post Graduate:
2	PRAMESH GOYAL	47	Managing Director	18,00,000	75,000		18,75,000On Roll			26-Nov-2010	-	12.23%	Brother of Mr. Lokesh Goyal, Whole Time
									Experience: 21 yrs
													Director and Mr. Rajesh Goyal, Chairman
													Cum Whole Time Director
													Brother of Mr. Rajesh Goyal, Chairman Cum
									Post Graduate
3	LOKESH GOYAL	39	Whole Time Director	18,00,000	75,000		18,75,000On Roll			31-Jan-2015	-	12.65%	Whole Time Director and Mr. Pramesh
									Experience: 16 yrs
													Goyal, Managing Director
											Samrat C
									Graduate
4	MOHAMMAD KHAN	44	General Manager	10,80,000	90,000		11,70,000On Roll			1-Feb-2025	Brines Private	-	No
									Experience: 15 yrs
											Limited
									Matric Pass
5	MUKESH KUMAR AGARWAL	54	General Manager (Marketing)	4,71,541	19,000		4,90,541On Roll			1-Apr-2011	-	0.10%	No
									Experience: 20 yrs
									Matric Pass
6	MAHENDRA SINGH RATHORE	38	Packaging Incharge	4,52,563	20,500		4,73,063On Roll			1-Apr-2014	-	-	No
									Experience: 10 yrs
											Saboo
									Graduate		Sodium
7	GAJENDRA SINGH RATHORE	57	Manager	4,46,190	11,000		4,57,190On Roll			1-Jul-2025		-	No
									Experience: 8 yrs		Chloro
											Limited
									Graduate
8	ABHISHEK KUMAR SINGH	35	Production Manager	4,34,761	16,000		4,50,761On Roll			1-May-2014	-	0.01%	No
									Experience: 10 yrs
									12th
9	BANNE SINGH	48	Maintenance Head	4,29,434	17,500		4,46,934On Roll			1-Sep-2015	-	0.01%	No
									Experience: 10 yrs
									Graduate
10	RADHESHYAM	34	Operation Manager	4,28,570	16,000		4,44,570On Roll			1-Feb-2011	-	0.16%	No
									Experience: 12 yrs