Jay Shree Tea & Industries Ltd Management Discussions

OVERVIEW

All India tea production is higher by 7% and reached 1370 mn kg against 1285 mn kg. The Companys crop decreased from 13.94 mn kg to 13.50 mn kg. Out of this own crop is 12.94 mn kg and 0.56 mn kg is bought leaf. The Company concentrated on quality production which is giving better performance than the peers in the industry.

SEGMENT ANALYSIS AND REVIEW

The Company is engaged in the manufacture of tea, sugar, ethanol and fertilizers besides tea warehousing and export business. Tea accounts for 51%, sugar accounts for 32% and fertilizers 17% of the gross turnover during 2025-26.

TEA

Your Companys district wise production compared to All India production is enumerated below: (Quantity in million kg.)

	Tea Manufactured by the Company (April to March)			All India Production* (Jan. to December)
District	2025-26**	2024-25**	Increase/Decrease (%)	2025	2024	Increase/Decrease (%)
Cachar	5.71	6.31	(9.51)	36.68	39.32	(6.71)
Assam Valley	4.67	4.68	(0.21)	651.08	610.52	6.64
Total Assam	10.38	10.99	(5.55)	687.76	649.84	5.84
Darieelina	0.42	0.32	31.25	5.30	5.60	(5.36)
Dooars	1.40	0.80	75.00	223.36	209.43	6.65
Terai	1.30	1.83	(28.96)	182.52	158.45	15.19
Total West Bengal	3.12	2.95	5.76	411.18	373.48	10.09
Others	-	-	-	37.24	34.66	7.44
Total North India	13.50	13.94	(3.16)	1136.18	1057.98	7.39
Tamil Nadu	-	1.22	(100.00)	171.44	163.92	4.59
Kerala	-	-	-	58.21	58.38	(0.29)
Karnataka	-	-	-	4.15	4.50	(7.78)
Total South India	-	1.22	(100.00)	233.80	226.80	3.09
Total Production	13.50	15.16	(10.95)	1369.98	1284.78	6.63

* All India figures on calendar year basis and estimated for 2025

**The above production includes tea manufactured from bought leaf.

District wise price realised by the Company for own produce compared to previous year is as under:

(Quantity in million kg.)

Tea Areas	This year			I Previous year
	Qnty.	Rate (?)	Dist. Average (?)	Qnty.	Rate (?)	Dist. Average (?)
Cachar	5.72	200.22	191.64	6.33	225.31	195.14
Assam	4.79	282.45	229.44	4.48	298.82	244.66
Darjeeling	0.42	600.90	429.44	0.31	645.79	391.74
Dooars/Terai	2.72	223.99	168.63	2.52	230.61	191.10
Total	13.65	246.23		13.64	N=RIGHT>259.99

Indias tea industry faces financial strain due to escalating input costs, labour shortages, climate related rises and stagnant prices. In fact the industry is grappling with a long term mismatch between cost escalation and price growth. Besides labour absenteeism, climate variability including erratic rainfall, rising temperature and pest infestations is affecting yield and quality. It is important that harmony is reached bwteen cost of production and price realization.(by value).

OUTLOOK

The Indian tea market is growing by approx. 3% per annum, with the branded business constituting 75% of the overall market (by value). Tea is the cheapest beverage available in the world with numerous health benefits. Rapid growth of digital platforms and e-commerce, have revolutionized access of garden fresh teas to consumers directly. This is helping in broadening market base.

Strengths

• Quality tea produced by the estates gives the Company an edge over peer group

• Participation in various trade fairs and advertisement in various forms giving Bagicha-by Jay Shree Tea to spread its wings further

• The back-end operations has been streamlined for improvement through higher recovery % and better quality

• Birla Brand always commands trust and premium in the market SUGAR

REVIEW OF OPERATIONS

Indias sugar production rose by 8% compared to 25.64 million tonnes in the year ago period. The industry has pressed for a version of the Minimum Selling Price (MSP) of sugar citing rising production costs and subdued ex-mill realizations. Government is considering to advance ethanol blending targets beyond the current E20 program towards higher blends such as E25 and E85/E100 backed by a faster rollout of flex fuel vehicles. This when implemented will be good for long term future of the industry.

OUTLOOK

The profitability of sugar is critical to the health of the sugarcane recovery which supports the livelihoods of about 50 million farmers and workers. The sector has brought prosperity to regions growing sugarcane. So there is strong case for upward version of MSP of sugar, which will help mitigate the impact of ongoing margin pressure. Geopolitical tensions in the middle East region has disrupted crude supply and rethinking in Indias oil dependence, which should ultimately push for ethanol blending beyond 20%. So there is potential for upside in Ethanol prices.

OPPORTUNITIES AND THREATS Strengths

• Encouraging long term Government policy on increasing the use of ethanol in Indias vehicular fuel mix

• Ethanol prices delinked from crude or petrol prices and price of sugar and FRP of sugarcane considered for its fixation by the Government every year

Threats

• Lower availability and diversion of cane, and shortage of molasses for full year running of ethanol plant CHEMICALS & FERTILISERS

REVIEW OF OPERATION

"Annapurna" brand of Single Super Phosphate (SSP) continues to remain one of the preferred choice of farmers in West Bengal for

enhancing crop productivity. The Company remains committed to increase its market share by consistently maintaining high quality standards and ensuing timely availability of products across the market.

OUT LOOK

SSP Fertiliser is enriched with Sulphur and other micronutrients, which plays an important role in improving soil fertility and crop yield. The Government of India has expressed its continued support for the indigenous SSP industry under "Make in India" initiative.

The Company has a strong network of Dealers & Retailers across West Bengal and the "Annapurna" brand enjoys strong market acceptance in the State. The Government increased subsidy by Rs.2142/- per tonne w.e.f 1st April,2025 and further Rs.741/- per tonne w.e.f 1st April,2026.

The Company is focused on expanding its market presence by maintaining superior product quality and ensuring wider product availability. In line with this objective, a 400 TPD Granulation plant is being commissioned to strengthen production capacity and market reach. The plant is expected to commence commercial production by August,2026.

OPPORTUNITIES AND THREATS Strengths

• "ANNAPURNA" SSP is recognized as one of the best quality SSP fertilizers available to farmers in West Bengal.

• Well-established distributors network in all districts of West Bengal.

• SSP is economical, easy to handle and being a generic fertilizer well-suited for a wide range of crops and soil types, making it a preferred fertilizer.

Threats

• Continuing price disparity between urea and phosphatic fertilisers resulting to imbalance use of fertiliser.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

Your Company has a long term vision for its debt management and always keeps sufficient liquidity to fulfill its all obligations in time. CARE reaffirmed their credit rating to the Companys long term loan and working capital demand loans. This demonstrates Your Companys ability to manage finances well and meet the financial commitment on time.

BUSINESS RESPONSIBILITY STATEMENT (BR)

HEALTH, SAFETY, SECURITY AND ENVIRONMENT

Health, safety, security and environment (HSSE) is a key priority for the Company. We are committed to the safety of our people and assets and towards the protection of the environment. Your Company follows industry-accredited best practices in health, safety, and environment related aspects to constantly set higher benchmarks and strives to exceed the same.

The fertiliser factory of your Company is following full Environment Management System and Occupational Health & Safety Management System.

All the tea estates follow green environment policy. Afforestation is being carried out on regular basis.

DEVELOPMENT IN HUMAN RESOURCES MANAGEMENT

Our integrated People agenda is focused on shaping a Future-Ready organization that delivers value, without compromising on our core Values. Training on job is an essential part of your Organization.

Tea industry is highly labour intensive and your Company considers people as its biggest assets. With regular communication and sustained efforts, it ensures that employees are aligned on common objectives and have the right information on business evolution.

The total number of people employed in your Company as on 31st March, 2026 was 18576.

CAUTIONARY STATEMENT

The statements in the report of the Board of Directors and the Managements Discussion and Analysis report describing the companys projections, estimates, expectations or predictions may be forward looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied since the Companys operations are influenced by many external and internal factors beyond the control of the Company. Further tea and chemicals industries depend upon the vagaries of nature and any adverse/ favourable situation can change the whole situation.