HMA Agro Industries Ltd Management Discussions

Global economy overview

The year 2026 has begun against a backdrop of heightened global uncertainty, driven by ongoing geopolitical tensions and financial market pressures. Developments across key regions, coupled with elevated debt levels and a prolonged high-interest rate environment, continue to weigh on global economic stability.

At the macro level, policy uncertainties in major economies, particularly the United States, along with the risk of renewed trade tensions, have added complexity to the global outlook. Increasing competition and weakening multilateral cooperation have further contributed to a more fragile and unpredictable environment. Additionally, rising social and political tensions in certain regions, especially in parts of Europe, reflect underlying economic and societal challenges. These pressures, alongside lingering health concerns and the growing impact of climate change, underscore the need for greater resilience and strategic adaptability across economies and industries. The global economy continues to witness uneven growth across regions. In the United States, growth is expected to remain steady at around 2.2%, supported by resilient consumer spending, despite a rise in corporate bankruptcies. The eurozone is projected to grow modestly at about 1%, with Germanys recovery providing some support, while France continues to face fiscal pressures, resulting in a relatively subdued growth outlook of ~0.9%.

Central Europe has shown stronger momentum, led by Poland with an estimated growth of 3.8%. In Asia, Chinas growth is expected to moderate to around 4.4%, potentially weighing on regional dynamics, while Southeast Asia presents a mixed picture across markets. In contrast, India remains one of the fastest-growing major economies, with growth projected at approximately 6.1%, driven by robust domestic demand, ongoing structural reforms, and proactive policy support.

Outlook After a year of elevated trade barriers and uncertainty, the global economy now faces renewed pressure from the conflict in the Middle East. If contained, growth is projected to ease to 3.1% in 2026, with a slight recovery to 3.2% in 2027, while inflation may rise briefly before declining again. Emerging and developing economies are expected to feel the impact more sharply. The outlook remains skewed to the downside. Prolonged conflict, rising geopolitical tensions, weaker-than-expected AI productivity gains, or renewed trade frictions could further slow growth and disrupt markets. High public debt and weakening institutional credibility add to the risks, though easing trade tensions or stronger AI-led gains could provide some support.

In this uncertain environment, resilience will depend on adaptive strategies, credible policies, and stronger global cooperation. While higher defence spending may boost short-term activity, it risks fuelling inflation, straining fiscal balances, and crowding out social investments.

Indian economy overview

Indias economy is expected to maintain a strong growth trajectory, with real GDP projected to expand by 7.6% in FY26, according to estimates by the Ministry of Statistics and Programme Implementation (MoSPI). This outlook underscores the countrys robust macroeconomic fundamentals despite prevailing global uncertainties. Nominal GDP, which incorporates price movements including inflation, is estimated to grow by 8.6% during the year, reflecting a balanced expansion in both economic output and price levels.

The growth momentum has been supported by consistent quarterly performance, with real GDP growth of 8.4% recorded in Q2 and 7.8% in Q3 (October-December), indicating resilience across key sectors of the economy. In recent years, India has sustained stable growth levels, with real GDP growth of 7.2% in FY2023-24 and 7.1% in FY2024-25. During the same period, nominal GDP growth stood at 11.0% and 9.7%, respectively.

The manufacturing sector continues to play a pivotal role in driving economic expansion, registering double-digit growth, and reinforcing Indias position as a key industrial hub. This momentum has been further supported by steady contributions from the secondary and tertiary sectors, reflecting the broad-based nature of the countrys economic growth.

The outlook remains skewed to the downside. Prolonged conflict, rising geopolitical tensions, weaker-than-expected AI productivity gains, or renewed trade frictions could further slow growth and disrupt markets. High public debt and weakening institutional credibility add to the risks, though easing trade tensions or stronger AI-led gains could provide some support.

Domestic demand continued to underpin Indias economic growth in FY26. According to the First Advance Estimates, the share of Final Private Consumption Expenditure (PFCE) in GDP increased to 61.5% during the year. The sustained strength in consumption reflects a supportive macroeconomic environment characterised by relatively low inflation, stable employment conditions, and improving real purchasing power. Rural consumption remained resilient, supported by strong agricultural performance, while urban consumption gradually improved, aided by the rationalisation of direct and indirect taxes. Together, these factors indicate that consumption-led growth remains broad-based across the economy.

61.5% The share of Final Private Consumption Expenditure (PFCE) in GDP is expected to increase to 61.5% in FY26.

In addition to consumption, investment activity continued to play a significant role in driving economic expansion during FY26. Gross Fixed Capital Formation (GFCF) is estimated to account for approximately 30.0% of GDP. Investment momentum strengthened during the first half of the fiscal year, with GFCF growing by 7.6%, surpassing the pace recorded in the corresponding period of the previous year and remaining above the pre-pandemic average growth rate of 7.1%.

30% Gross Fixed Capital Formation (GFCF) is estimated to account for approximately 30.0% of GDP.

The agriculture and allied sectors are estimated to grow by 3.1% in FY26.

Agricultural performance during the first half of the fiscal year was supported by a favourable monsoon, resulting in agricultural GVA growth of 3.6%, higher than the 2.7% recorded during the same period in FY25, though still below the long-term average of 4.5%. Allied activities, particularly livestock and fisheries, have demonstrated relatively stable growth in the range of 5-6%. With the increasing share of allied activities in agricultural GVA, overall agricultural growth is increasingly shaped by the interplay between the relatively volatile crop segment and the more stable expansion in allied sectors.

3.1% The agriculture and allied sectors are estimated to grow by 3.1% in FY26.

The industrial sector showed steady improvement in FY26 , with manufacturing growing 8.4% in H1, surpassing the full-year estimate of 7.0%. Construction remained resilient, supported by strong public capex and infrastructure momentum. Manufacturings share in GDP held steady at 17-18%, with GVO at ~38%, comparable to services.

On the supply side, services continue to drive growth, with GVA expanding 9.3% in H1 FY26 and an estimated 9.1% for the full year.

Growth was broad-based across segments, with most sub-sectors exceeding 9% growth, except for trade, hospitality, and related services, which remain slightly below pre-pandemic levels.

Indian MSME sector

The Micro, Small and Medium Enterprises (MSME) sector forms the backbone of Indias economic landscape, comprising a diverse spectrum of businesses that differ in scale, technology, and innovation. These enterprises are vital drivers of economic progress, contributing meaningfully to GDP, exports, employment generation, and balanced regional development. With the ability to produce over 6,000 products, MSMEs play a crucial role in meeting the countrys demand for mass consumption goods. Given its strategic significance, the sector holds immense potential to power sustained economic growth, provided it is supported by a conducive policy framework and focused developmental initiatives.

? 31.1% Indian MSME sectors contribution to the Indian GDP

? 35.40% Indian MSME sectors contribution to Indias total manufacturing output

? ~48.58% Indian MSME sectors contribution to Indias total exports

? ~32.82 crore Number of people employed by the Indian MSME sector

? ~7.47 crore Number of registered enterprises in the Indian MSME sector

The MSME sector continues to serve as a cornerstone of Indias economic architecture, driving structural transformation through decentralised industrialisation and broad-based growth. Contributing 31.1% to GDP and 35.4% to total manufacturing output, underscoring its pivotal role in strengthening domestic production capabilities. Beyond its economic contribution, MSMEs play a critical role in reducing regional disparities by anchoring local economies and fostering self-reliance. The sector also remains a key employment generator, providing livelihoods to over 32.82 crore individuals and acting as a vital instrument for socio-economic inclusion by empowering first-generation entrepreneurs and underserved communities.

MSMEs are increasingly emerging as engines of global competitiveness and innovation. Their integration into global value chains has significantly strengthened Indias export performance, with the sector contributing 48.55% to merchandise exports in FY25. Targeted policy initiatives, including export promotion schemes and enhanced access to collateral-free credit, support this momentum.

Simultaneously, the rapid adoption of digital public infrastructure, such as ONDC, OCEN, and the Account Aggregator framework, is enabling greater formalisation, improved market access, and efficient credit delivery. MSMEs are also playing a grounding role in advancing Indias sustainability and innovation agenda by adopting green technologies and contributing to strategic sectors such as defence and deep-tech manufacturing. With continued policy support and technological integration, the sector is well-positioned to drive inclusive, sustainable, and innovation-led growth aligned with Indias long-term economic vision.

Key Budget takeaways for the Indian MSME Sector

The Union Budget 2026-27 places MSMEs at the centre of Indias growth strategy, adopting a structured three-pillar approach focused on equity, liquidity, and capability building. A landmark initiative is the introduction of a ?10,000 crore SME Growth Fund, aimed at nurturing high-potential enterprises into globally competitive champion MSMEs by providing long-term growth capital.

To further strengthen access to risk capital, the government has proposed an additional allocation to the Self-Reliant India Fund, ensuring continued equity support for micro and small enterprises. Alongside this, enhanced liquidity measures, particularly through the mandatory integration of the Trade Receivables Discounting System (TReDS) into public-sector procurement, are expected to improve cash flows and address challenges related to delayed payments.

The Budget also emphasises ease of doing business and compliance simplification, with institutional support mechanisms such as Corporate Mitras to assist MSMEs, especially in Tier-II and Tier-III markets. In a significant boost to exports, the removal of the ?10 lakh cap on courier exports is set to expand global market access for small businesses, artisans, and startups.

Overall, the Budget signals a strategic shift from incremental support to building scale, competitiveness, and global integration, positioning MSMEs as key drivers of manufacturing growth, exports, and employment in Indias long-term economic vision.

Outlook Indias economic outlook remains resilient, supported by strong macroeconomic fundamentals and broad-based demand. Real GDP and GVA are projected to grow by 7.4% and 7.3%, respectively, in FY26, driven by robust agricultural performance and improving urban consumption. Indias medium-term growth remains stable, with FY27 growth expected in the range of 6.8%-7.2%. Inflation has moderated significantly, with average headline inflation at 1.7% during April-December 2025, among the lowest levels recorded. The RBI has revised its FY26 inflation forecast to 2.0%, supported by favourable agricultural output, while IMF estimates remain moderate for FY26 and FY27. Looking ahead, inflation is expected to remain benign, providing a stable macroeconomic environment conducive to sustained economic growth and investment.

The Budget also emphasises ease of doing business and compliance simplification, with institutional support mechanisms such as Corporate Mitras to assist MSMEs, especially in Tier-II and Tier-III markets. In a significant boost to exports, the removal of the ?10 lakh cap on courier exports is set to expand global market access for small businesses, artisans, and startups.

Global meat processing industry

Few industries hold as much strategic importance in the global food ecosystem as the meat and meat processing industry. The sector plays a critical role in feeding a growing global population, supporting livelihoods across the value chain, and responding to defining trends shaping the future of food, including rising protein consumption, urbanisation, cold chain expansion, and the increasing focus on sustainable food production.

The global meat market, valued at approximately USD 1,217.95 billion in 2025, is expected to reach USD 1,306.07 billion in 2026, registering a CAGR of 7.2%. Over the long term, the market is projected to surpass USD 1,720 billion by 2030, driven by increasing per capita protein consumption across emerging economies in Asia, Latin America and Sub-Saharan Africa. These regions continue to witness evolving dietary preferences and rising demand for quality protein sources.

Within this broader landscape, the processed meat segment, comprising frozen, canned, cured and ready-to-cook products, continues to demonstrate strong growth potential. Valued at USD 368.2 billion in 2025, the segment is projected to reach USD 571.8 billion by 2035, growing at a 4.5% CAGR. A key structural driver underpinning this growth is rapid urbanisation. As urban lifestyles evolve, consumers are increasingly seeking convenient, hygienic and easy-to-prepare food options. With the United Nations estimating that nearly 68% of the global population will reside in urban centres by 2050, we believe demand for processed and value-added protein products will remain on a strong growth trajectory.

The Asia-Pacific region remains at the centre of global meat consumption, accounting for nearly 57.8% of the overall market and projected to grow at a CAGR of 7.7% through 2035. China remains the worlds largest consumer, while countries such as India, Vietnam and Indonesia are emerging as key growth markets, supported by changing dietary patterns, rising incomes and increasing protein consumption. In India, poultry continues to dominate domestic demand, while buffalo meat, commercially known as carabeef, remains a significant contributor to the countrys agricultural export basket. At the same time, North America continues to lead the processed meat segment, contributing over 41% of global processed meat revenues in 2025.

The Middle East and Africa are increasingly important markets for processed and frozen meat exports, supported by population growth, rising food demand, halal certification requirements, and limited domestic protein production capacity. Europe, on the other hand, is witnessing a more measured growth trajectory amid evolving regulations related to food labelling, health standards and sustainability requirements. Meanwhile, Latin America, particularly Brazil, Argentina and Chile, continues to play a vital role in the global meat supply chain as a major production and export hub for poultry and beef.

Against this evolving global landscape, we continue to strengthen our focus on quality, compliance, operational efficiency, and market diversification, enabling us to effectively cater to changing customer requirements across international markets.

Global processed meat industry

Valued at approximately USD 399.2 billion in 2025, the global processed meat industry is projected to reach USD 425.9 billion by the end of 2026 and grow to nearly USD 814.6 billion by 2036, at a CAGR of 6.7%. The industrys growth is expected to be supported by rising urbanisation, evolving food consumption patterns and increasing demand for convenient, protein-rich products. Expanding middle-class populations across emerging economies, coupled with the rapid growth of modern retail and foodservice channels, are further strengthening market demand for frozen and chilled processed meat products.

Growth trends continue to vary across regions. India remains one of the fastest-growing markets, supported by rising urban consumption and growing demand for frozen and ready-to-cook products. China is benefiting from organised retail expansion and higher consumption through quick-service restaurant chains. At the same time, developed markets such as the United States, the United Kingdom and Japan continue to witness demand driven by premium, high-protein and convenience-focused offerings.

The industry continues to face certain structural challenges, including rising consumer focus on health and nutrition, volatility in animal feed prices and inadequate cold-chain infrastructure in some developing markets. These factors continue to influence operational efficiencies and consumption patterns across regions. In response, leading players are focusing on product innovation, premiumisation and expansion into high-growth emerging markets. The industrys focus is steadily shifting towards value-added products, better quality standards and stronger distribution networks to improve competitiveness and profitability.

Key trends shaping the global meat industry

? Automation & processing technology: Labour shortages and margin pressures are accelerating investment in automated deboning, portioning, and quality sorting systems. The global meat processing equipment market was valued at USD 13.81 billion in 2026 and is projected to reach USD 25.23 billion by 2035 at a 6.92% CAGR.

? Cold chain modernisation: End-to-end temperature-controlled logistics is no longer optional; it is a market access prerequisite. Governments and private players across Asia and the Middle East are investing heavily in cold storage and refrigerated transport, enabling branded chilled and frozen formats to reach previously inaccessible consumer tiers.

? Sustainability & traceability: Institutional buyers, retailers, and increasingly consumers are demanding verifiable sustainability credentials, from carbon footprint disclosure to animal welfare standards. Traceability systems, regenerative farming practices, and third-party certifications are transitioning from differentiators to baseline expectations.

? Premiumisation & clean label: Consumers in developed markets are trading up to leaner cuts, specialty proteins, and clean-label products with shorter ingredient lists. Poultry, with its superior protein-to-fat ratio, is gaining traction at the expense of red meat among health-conscious urban consumers globally.

? Halal certification & export access: Halal-certified meat is a non-negotiable entry requirement for the 57-nation OIC market. Processors investing in internationally recognised halal certification and compliant processing infrastructure are gaining significant export market access that their uncertified peers cannot reach.

Outlook The global meat and meat processing industry is expected to witness steady long-term growth, driven by rising populations, increasing incomes and evolving dietary preferences across developing economies. According to the OECD-FAO Agricultural Outlook 2025-2034, global meat production is projected to grow by 13% to nearly 406 million tonnes by 2034, while consumption is expected to increase by 47.9 million tonnes during the same period. Asia is likely to remain the key growth driver, contributing over half of incremental global production, with poultry leading the way. The USDA also projects continued growth in global poultry output, supported by strong demand across emerging markets.

Productivity improvements, including advancements in genetics, feed efficiency, and processing technologies, are increasingly supporting growth across the industry. Rising incomes and changing consumption habits in lower-middle-income countries, particularly across South and Southeast Asia, are further accelerating protein demand. Poultry continues to emerge as the preferred protein category globally owing to its affordability and accessibility, while the processed meat segment is gaining momentum due to urbanisation, convenience-driven consumption and changing lifestyles.

Indian meat industry

Indias position in the global meat industry has strengthened significantly over the past decade, with the country emerging as the worlds fifth-largest meat producer by volume, according to the Food and Agriculture Organisation (FAO). Domestic meat production reached 10.25 million tonnes in FY 2023-24, reflecting a year-on-year growth of 4.95%. Simultaneously, the Indian meat market, valued at nearly USD 60 billion in 2025, is projected to reach USD 124.2 billion by 2034, supported by rising urbanisation, improving disposable incomes and increasing preference for organised and hygienic protein consumption.

The poultry segment continues to dominate the domestic market and remains one of the fastest-growing categories within the broader protein industry. Despite this growth, Indias per capita poultry consumption remains substantially lower than the global average, indicating considerable headroom for future expansion. A large share of the market is still served by the unorganised sector and traditional wet markets, creating significant opportunities for the organised and processed meat industry to scale through branded offerings, higher quality standards, and integrated supply chains.

Indias expanding middle class, increasing rural purchasing power and evolving dietary preferences are steadily driving higher consumption of meat and poultry products across regions. Growing awareness regarding the nutritional benefits of protein-rich diets, coupled with changing lifestyles and greater focus on food safety and convenience, is further accelerating demand for processed and value-added products.

As the industry continues to formalise, supported by rising consumer awareness, technological advancements and improving cold-chain infrastructure, the long-term outlook for Indias meat and poultry sector remains positive. The sector is expected to benefit from increasing domestic demand, export opportunities and a gradual shift towards organised consumption patterns, positioning it as a key contributor to Indias food processing and agricultural economy.

Indias growing meat The Indian meat market continues to demonstrate strong long-term growth potential, supported by changing consumption patterns, rising urbanisation and improving purchasing power. Valued at USD 60.0 billion in 2025, the market is projected to reach USD 124.2 billion by 2034, growing at a CAGR of 8.42%. Increasing demand for protein-rich food products, expansion of organised retail and the rapid growth of cold chain and e-commerce delivery platforms are reshaping the industry landscape and creating new opportunities across the value chain. Additionally, Indias low per capita meat consumption of just 6.63 kg, compared to the global average of ~35.4 kg, leaves significant headroom for growth.

The market has grown significantly from USD 40.1 billion in 2020 to USD 60.0 billion in 2025, reflecting the steady rise in household protein consumption and continued policy support for livestock development. As urbanisation accelerates and more than 40% of Indias population is expected to reside in urban areas by 2030, we believe the sector is well-positioned to benefit from evolving consumer preferences, improved accessibility, and a stronger, organised supply ecosystem.

Key growth drivers for the Indian meat market

? Urbanisation & shifting dietary habits: Indias urban population stood at 36.36% in 2023 and is projected to exceed 600 million by 2030. Urban households are structurally heavier meat consumers, they eat out more, have less time to cook complex vegetarian meals, and are more exposed to the QSR culture that normalises meat consumption across demographics. The National Family Health Survey 5 found that 78% of men and 70% of women in India currently consume non-vegetarian food, representing a 15% increase over the previous survey round. As cities absorb the next wave of rural migrants, this trend will only deepen.

? Rising disposable incomes & protein affordability: The Indian middle class is expanding in both size and purchasing power. As real incomes rise, the shift from carbohydrate-heavy diets to protein-rich alternatives is well-documented globally, and India is no exception. Chicken, priced at 120-140 per kg in 2025, offers a price advantage of nearly 5x over mutton, which is priced at 600-800 per kg, making it the go-to protein for cost-conscious urban and semi-urban consumers. As incomes grow, consumers who begin with chicken migrate toward higher-value cuts, processed formats, and eventually premium proteins, a spending ladder that benefits the entire meat value chain.

? QSR & organised food service expansion: Indias quick service restaurant sector was valued at USD 2.7 billion in 2022 and has been growing at approximately 18% per annum, with meat-based menu items expanding by 35% since 2019. The food service channel, encompassing QSRs, hotels, airlines, and institutional catering, accounted for 57.62% of the Indian edible meat market in 2025. The proliferation of global and domestic QSR chains into Tier-II and Tier-III cities is creating a structural, recurring demand pool for processed and portioned meat, which is a qualitatively different buyer from the traditional wet-market consumer in terms of volume consistency, hygiene standards, and specification requirements.

? Cold chain infrastructure build-out: Cold chain is the arterial infrastructure of any modern meat industry. Without it, chilled and frozen products cannot travel safely from processing facility to retail shelf; without reliable shelf life, organised retail cannot stock branded products; and without organised retail, the sector remains trapped in the low-margin, low-trust informal economy. Indias cold storage capacity rose 25% between 2020 and 2023, reaching 37 million metric tonnes. The Ministry of Food Processing Industries is investing approximately USD 230 million across 395 cold-chain infrastructure corridors under PMKSY, with PMKSY receiving an allocation of ?4,600 crore through March 2026. Each percentage point of improvement in cold chain coverage expands the addressable market for organised processors.

? Government policy support & PLI scheme: The regulatory and fiscal architecture supporting Indias food processing sector, within which meat processing is a significant and growing component, is among the most enabling the industry has seen. The Production Linked Incentive scheme for food processing runs through FY26 with a total outlay of ?10,900 crore, supporting the creation of globally competitive manufacturing brands and Indian food exports. The Union Budget FY26 allocated ?4,364 crore to MoFPL, spanning PLI, PMKSY, and PMFME schemes. India permits 100% FDI in the food processing sector, and cumulative FDI between April 2000 and March 2025 reached approximately USD 13.1 billion. The National Livestock Mission and Pradhan Mantri Kisan Sampada Yojana provide additional upstream and midstream support.

? Export demand & APEDA facilitation: Indias export story in meat is one of the sectors most compelling and most underappreciated dimensions. Buffalo meat (carabeef) exports crossed USD 3.92 billion in FY 2024-25, and early FY26 data shows combined exports of buffalo meat, dairy, and poultry rising sharply by approximately 20% year-on-year in the April-August period, reaching USD 2.17 billion. India now holds market access across 70-plus countries, with Vietnam, Malaysia, Egypt, Iraq, Saudi Arabia, and the UAE as primary destinations. A newly constituted Meat Export Development Fund under APEDA, operational from October 2025, will channel industry contributions into market expansion and R&D, replicating the successful model of the Basmati Export Development Fund.

? E-commerce & digital meat delivery: The rise of online grocery and dedicated meat delivery platforms such as Big Basket, Amazon Fresh, Licious, Fresh-To-Home, and a growing range of quick-commerce aggregators is narrowing the gap between consumers and organised processors in a way that traditional retail never could. The Ministry of Electronics and Information Technology projects that e-commerces share of total retail sales will triple between 2021 and 2026. Off-trade retail, including online channels, is the fastest-growing distribution format in Indias edible meat market, advancing at a 5.95% CAGR through 2031. Every new customer acquiring through a digital platform is a consumer who has transitioned permanently from the unorganised to the organised channel.

? Formalisation of the supply chain & per capita headroom: Perhaps the most powerful yet least discussed driver of Indias meat market growth is the extent to which the organised sector remains in its early stages. With 85% of poultry volumes still flowing through wet markets and the unorganised trade, the runway for branded, packaged, and certified formats is extraordinary. Indias per capita meat consumption of 6.63 kg stands against a global average of 35.4 kg a gap that, even at current population levels, represents hundreds of billions of dollars in latent demand.

Outlook The long-term outlook for Indias meat and meat processing industry remains firmly positive, supported by strong structural drivers. Rising protein consumption among a growing, increasingly urban global population, coupled with the steady formalisation of supply chains and supportive government initiatives, continues to strengthen the industrys growth potential. At the same time, increasing consumer preference for processed and value-added products is creating new opportunities across domestic and international markets.

For Indian processors, this presents a compelling opportunity. Indias cost-competitive production ecosystem, strong position in global buffalo meat exports, and a domestic market expanding at a pace significantly higher than global averages provide a strong foundation for sustained growth. Against this backdrop, we remain focused on strengthening our processing capabilities, expanding cold chain infrastructure, enhancing global compliance standards, including halal certification, and building value-added offerings that align with evolving consumer preferences. These strategic investments are expected to strengthen Indias market position further and create long-term value in an increasingly competitive global landscape.

Company overview

Established in 2008, HMA Agro Industries Limited has steadily built its standing as one of Indias foremost names in the global food industry. The Company has carved out a distinctive position as a leading exporter of halal-certified buffalo meat and a wide range of agricultural products, backed by state-of-the-art processing and packaging infrastructure. Operating through a fully integrated production and processing ecosystem, HMA brings together every stage of the value chain, from sourcing to final delivery, ensuring consistency, traceability, and the highest quality standards at each step.

The Companys six flagship brands, Black Gold, Kamil, HMA, Fresh Gold, Darling Pets and HMA Green Gold have earned deep recognition across more than 40 countries, becoming synonymous with premium meat and agri-products in the markets they serve. Over the years, HMA has developed a carefully curated portfolio of meat-based offerings designed to meet the specific and exacting requirements of renowned institutional clients worldwide. This trust, built over time through consistent product quality and reliable supply, remains one of the Companys most enduring competitive strengths.

At HMA, our ambitions extend well beyond commercial growth. We believe that the businesses best placed to lead are those anchored in a clear sense of purpose, and ours is rooted in delivering excellence while staying true to our values of innovation, sustainability, and social responsibility. Guided by a passionate and experienced team, and with a forward-looking approach that keeps us attuned to the evolving demands of global markets, we remain well-positioned to deepen our international presence and continue generating meaningful, lasting value for our customers, partners, and stakeholders.

Key strategic priorities for the Company

? Grow and strengthen the network advantage.

? Deliver operational and organisational efficiencies

? Disciplined allocation of capital and improved cash flow generation

? Innovate offerings matching the evolving customer needs

? Build a talented workforce

Our core strengths

I. Integrated value chain: The Company operates an end-to-end production and processing ecosystem, from upstream sourcing to final packaged delivery, giving it full visibility, cost control, and quality assurance at every stage of the value chain.

II. Halal certification & export compliance: Holding internationally recognised Halal certifications, HMA meets the mandatory compliance standards of the 57-nation OIC bloc. This non-negotiable market-access credential sets it apart from most domestic competitors.

III. Global brand equity: The Companys six flagship brands, Black Gold, Kamil, HMA, Fresh Gold, Darling Pets and HMA Green Gold carry meaningful recognition across more than 40 countries, providing a branded foundation that commands premium positioning in competitive international markets.

IV. Buffalo meat expertise & cost advantage: As one of Indias leading exporters of halal buffalo meat, HMA leverages the countrys unmatched livestock endowment and a natural cost advantage of 30-40% over comparable global proteins, a combination that is structurally difficult for international competitors to replicate.

V. State-of-the-art processing infrastructure: Investment in cutting-edge processing and packaging facilities ensures that HMAs products consistently meet the stringent hygiene, shelf life, and specification requirements of global institutional buyers and regulated import markets.

VI. Established institutional client relationships: Years of consistent product quality and reliable supply have built deep, recurring relationships with renowned institutional clients across key geographies. This client base provides both revenue predictability and a credible network of references for new market entry.

VII. Diversified product portfolio: Beyond its core buffalo meat offering, the Companys range spans a broad spectrum of meat and agricultural products, providing natural insulation against category-specific demand cycles and widening its addressable market across buyer segments.

VIII. Experienced leadership & institutional knowledge: The management team brings decades of domain expertise in meat processing, export operations, and international trade, an institutional depth that informs every commercial, operational, and compliance decision the Company makes.

Quality focus

At HMA, we strongly believe that quality forms the cornerstone of our sustainable growth and long-term stakeholder trust. Guided by this philosophy, we have established a rigorous validation and qualification framework across our systems, facilities, and processes. This structured approach enables us to consistently meet our customers expectations while ensuring full compliance with applicable regulatory standards. Through a strong focus on quality, reliability, and operational discipline, we continue to strengthen our commitment to excellence across every aspect of the business.

Ratio Analysis & Risk Management

RATIO ANALYSIS AND ITS ELEMENTS (STANDALONE)

Ratio	Numerator	Denominator	March 31, 2026	March 31, 2025	% change	Remarks
Current ratio	Current Assets	Current Liabilities	1.29	1.37	-6%	Decrease due to temporary increase in Current Liabilities
Debt-Equity Ratio	Total Debt	Shareholders Equity	0.93	0.64	45%	Increase due to increase in debt
Debt Service Coverage ratio	Earnings for debt service = Net profit after taxes + Non-cash operating expenses	Debt service = Interest payable to bank	3.98	3.19	25%	Increase due to increase in profit
Return on net worth	Net Profits after taxes	Shareholders Equity	14.20%	7.69%	85%	Increase due to increase in profit
Inventory Turnover ratio	Cost of goods sold	Average Inventory	6.37	11.16	-43%	Decrease due to increase in average inventory
Trade Receivable Turnover Ratio	Net credit sales = Gross credit sales - sales return	Average Trade Receivable	83.33	15.73	430%	Increase due to increase in sales
Trade Payable Turnover ratio	Net credit purchases = Gross credit purchases - purchase return	Average Trade Payables	64.18	47.06	36%	Increase due to increase in purchases
Net Capital Turnover ratio	Net sales = Total sales - sales return	Working capital = Current assets - Current liabilities	16.49	15.70	5%	Increase due to increase in sales
Net Profit ratio	Net Profit	Net sales = Total sales - sales return	1.88%	1.24%	52%	Increase due to increase in profit
Return on Capital Employed	Earnings before interest and taxes	Capital Employed = Tangible Net Worth + Total Debt + Deferred Tax Liability	11.86%	8.66%	37%	Increase due to increase in profit
Return on Investment	Interest (Finance Income)	Investment	8.90%	2.68%	71%	Increase due to increase in income

Risk management

HMA strongly emphasises implementing a comprehensive risk management system to achieve its objectives while ensuring the organisations sustainability. The Company management actively identifies, analyses, assesses, manages and controls risks that may impact operations. This process is led by the companys senior management, with support from various committees that regularly review and monitor risks in line with governance standards. HMAs risk management approach aligns with its strategy and contributes to its successful implementation.

Key risks and their mitigation strategy

? Exposure to trade policies and government regulations: Changes in the trade policies of key importing countries or in government regulations, such as export bans or changes in export duties, can affect the HMAs export revenues.

o Risk mitigation: HMA has a diversified presence, both domestically and globally, and exports products to more than 40+ countries, thereby reducing risk by not depending on any single customer or country. India is the largest exporter of buffalo meat, and therefore, countries looking to purchase buffalo meat have favourable policies. HMA has established a process for the team to identify regulatory changes and their associated impacts to stay abreast of compliance requirements globally.

? Exposure to foreign currency risk: As a significant portion of its turnover comes from exports, the Company is exposed to foreign currency fluctuations. To manage this risk, the Company has a hedging policy in place.

o Risk mitigation: Foreign exchange risk is mitigated through a thought-out and well-structured foreign exchange risk management policy, which safeguards the Company from any unwanted foreign currency fluctuations by competently hedging all foreign currency exposures. HMA can leverage its strong brand position in the market in case of price increases and pass on the costs to the customers.

? Competition risk: The Indian meat industry is highly fragmented, with numerous players competing for market share. This intense competition limits pricing flexibility for industry participants, including HMA.

o Risk mitigation: A strong brand presence in both domestic and export markets serves as a mitigation strategy. The availability of HMA products across multi-channels, such as general trade, e-commerce, and modern trade, ensures broader market reach and reduces reliance on a single distribution channel. HMA has put in place processes that help monitor the competitors and take the necessary actions.

? Geographical risk: A high dependency on any single country can lead to a decline in profitability.

o Risk mitigation: HMA has a product presence in over 40+ countries across the world. This diversified presence across multiple countries is expected to mitigate risks associated with geopolitical instability in certain regions. HMA holds a significant market share in some of the core markets. HMA is one of the leading players in the branded meat market in key markets, such as Vietnam, Malasia, Egypt, Indonesia and Hong Kong, among others.

? Human capital risk: The Companys growth could be adversely affected if it cannot attract and retain talented individuals.

o Risk mitigation: HMA Limited invests in recruiting talent that aligns with the organisations values, as well as in talent development and employee engagement. This approach helps create fulfilling career opportunities at HMA Agro Industries Ltd. The Company strengthened its robust talent value proposition as one of its key focus areas to drive sustainable growth.

? Regulatory risk: Failure to meet regulatory requirements may impact operations and sales performance.

o Risk mitigation: The Company maintains a proactive and transparent relationship with regulatory authorities, ensuring full compliance with all applicable legal and industry standards. Through rigorous internal and external audits, we reinforce our commitment to financial transparency and operational excellence. These audit outcomes are regularly reviewed by the Audit Committee, reinforcing a culture of accountability, integrity, and ethical governance at every level of the organisation.

Human resource

Our intellectual capital is the foremost asset of our business, and the satisfaction of workers within the organisation is a major factor in its prosperity. HMA believes that the Company is governed by its people, and our success is directly dependent on their success and growth. Our commitment is to create an environment where personal growth is encouraged and supported in a secure atmosphere. In addition, the Company has often emphasised the importance of having a diverse team on board and cherishes each individuals input. Our human capital is our greatest tool for shaping the Companys future and is also critical to our smooth functioning.

The groups strength resides in working and growing as a team. Training and skill development are critical for contributing to the overall growth of personnel and the organisation. The Company organises training and development sessions for its workforce, motivating and empowering them to unleash their full potential. Further, we focus on maintaining a flat communication structure to make it lucid for employees to share their views with the management. Such initiatives aid in the recruitment and retention of top talent across the sector, helping the Company enjoy the support of committed, well-satisfied human capital. The Company has effectively implemented important HR initiatives and people management practices. As of 31st March 2026, HMAs total workforce exceeds 1100+ employees.

Health and safety measures The well-being and safety of our personnel are our utmost priority. We understand that a secure and healthy work environment is not only crucial for our employees welfare but also vital for the sustainable success of our Company.

With this in mind, we have established comprehensive health and safety policies and procedures, accompanied by regular training and awareness programs for all our staff. We actively strive to identify and minimise any potential occupational health and safety risks across our operations. By placing a strong emphasis on occupational health and safety, we are cultivating a safety-centric culture that enhances our employees well-being. To effectively identify and address health and safety hazards and elevate our performance in these areas, we have implemented a range of safety measures across our corporate office and manufacturing facilities.

Internal control systems and adequacy

The Company has implemented a robust framework of Internal Financial Controls, thoughtfully designed to align with the size, scale, and complexity of its operations. The Board of Directors is responsible for ensuring that these controls remain both adequate and effective. At its core, this framework aims to offer reasonable assurance regarding the accuracy of financial and operational reporting, compliance with applicable laws and regulations, protection of assets from unauthorised use, proper authorisation of transactions, and adherence to internal policies.

Aligned with the provisions of the Companies Act, 2013, the internal control systems are well-suited to the nature and scale of the business. To support operational consistency and accountability, Standard Operating Procedures (SOPs) have been laid out across functions, with business heads responsible for ensuring adherence within their respective domains.

The Internal Audit function operates with a clearly defined mandate and scope. To maintain its independence and objectivity, it reports directly to the Chairman of the Audit Committee. Each year, the Internal Audit team prepares a risk-based audit plan, which is reviewed and approved by the Audit Committee. The Committee also closely tracks the execution of the plan. As part of its role, the Internal Audit team assesses the strength and adequacy of internal control mechanisms. It ensures compliance with operational systems, accounting standards, and internal policies across the Company and its subsidiaries. Based on audit findings, process owners are expected to take timely corrective actions to improve the control environment continuously.

Cautionary statement

The MDA section contains forward-looking statements concerning the Companys prospects. These statements entail various known and unknown risks and uncertainties that could significantly impact actual results. Additionally, the Company faces unforeseen and ever-evolving risks in its operating environment. The reports assumptions rely on both internal and external information, forming the basis for specific facts and figures. However, it is crucial to acknowledge that these assumptions may change over time, leading to corresponding adjustments in the estimates. These forward-looking statements represent the Companys current intentions, beliefs, or expectations and are applicable as of their original date. Please note that the Company is under no obligation to revise or update these forward-looking statements, regardless of any new information, future events, or changing circumstances.