Jeyyam Global Foods Ltd Management Discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT:

COMPANY OVERVIEW

Incorporated on 24 March 2008, Jeyyam Global Foods Limited is an integrated food-processing company with established capabilities in the chana (Bengal gram) value chain. Its principal products include chana, fried gram and besan. The Company has developed domain expertise in sourcing, processing and supplying pulse-based products to institutional and trade customers and is progressively strengthening its branded consumer-facing portfolio.

During FY 2025-26, the Company focused on consolidating its core business, improving capacity utilisation, maintaining financial discipline and increasing the contribution from branded and value-added products. Organisational and governance measures initiated in the preceding year continued to support the Companys transition into a more scalable and institutionally managed listed enterprise.

(a) Industry structure and developments.

India is one of the worlds largest producers and consumers of pulses. The pulses-processing industry remains essential to the domestic food economy, supported by population growth, urbanisation, evolving dietary preferences and a sustained focus on affordable plant-based protein. Demand is increasingly shifting towards hygienically processed, packaged and branded foods, while organised retail and digital commerce are widening market access.

The sector nevertheless remains exposed to volatility in agricultural output, seasonal availability, commodity prices, import and trade policy, climatic conditions and logistics costs. Since raw materials represent a substantial portion of the Companys cost base, timely procurement, inventory discipline, sourcing proximity and efficient plant utilisation remain critical to protecting margins.

(b) Opportunities and Threats.

Opportunities

• Expansion of the branded pulses and packaged-food market across urban, semi-urban and emerging regional centres.

• Growing consumer preference for quality, hygiene, health, convenience and traceability in food products.

• Progress at the Gulbarga facility, located closer to major raw-material sourcing centres, with potential to improve procurement efficiency and reduce inward logistics costs.

• Expansion into value-added categories such as spices, ready-to-cook products and allied pulse-based foods.

• Potential to widen distribution across institutional, general trade, modern retail and digital channels.

• Greater automation, process improvement and capacity utilisation across manufacturing operations.

Threats

• Fluctuation in chana and other agricultural commodity prices and availability due to crop cycles, weather and policy changes.

• Thin operating margins inherent in commodity-oriented products and the time required to scale higher-margin branded products.

• Working-capital intensity arising from procurement cycles, trade receivables and supplier advances.

• Competition from organised brands, regional processors and unorganised market participants.

• Execution risks relating to new capacity, product launches, distribution expansion and brand investment.

• Food-safety, quality, regulatory and reputational risks associated with processed-food operations.

(c) Segment-wise or product-wise performance.

The Company operates predominantly in a single reportable business segment comprising the processing and sale of chana and chana-based food products. Revenue from operations for FY 2025-26 was Rs. 651.22 crore, compared with Rs. 762.40 crore in FY 2024-25, representing a decline of 14.58%. The moderation reflects lower business volumes and/or realisations during the year. The Company continued to focus on its established products while developing the market reach of branded chana, besan, fried gram.

(d) Outlook

The long-term outlook for branded and hygienically processed food products in India remains favourable. Changing consumer preferences, organised retail, digital commerce and rising awareness of quality and convenience offer meaningful growth opportunities. The Companys near-term priorities are to stabilise and utilise new capacity, protect procurement economics, improve receivable collections, optimise working capital, deepen distribution and progressively increase the share of branded and value-added products.

The operating environment is likely to remain sensitive to commodity prices, crop availability and competitive intensity. Accordingly, the Company will continue to emphasise prudent capital allocation, financial discipline, quality control, supply-chain resilience and sound corporate governance. Sustainable improvement in margins will depend on product mix, sourcing benefits, higher capacity utilisation and disciplined growth.

(e) Risks and concerns.

• Raw-material and commodity risk: Seasonality, crop output, climatic events, imports, regulation and commodity-price volatility can affect availability and gross margins.

• Working-capital risk: High receivables and supplier advances may lengthen the cash- conversion cycle and increase dependence on short-term funding.

• Quality and regulatory risk: Food-safety, product-quality, labelling and statutory noncompliance can result in financial and reputational consequences.

• Credit and counterparty risk: Customer concentration, delayed collections or supplier performance issues can affect liquidity and operations.

• Technology and operational risk: Plant breakdown, process failure, cyber incidents or interruption of critical systems may disrupt production and reporting.

(f) Internal control systems and their adequacy.

The Company has internal financial and operational controls commensurate with the size and nature of its business. The control framework is designed to support reliable financial reporting, statutory compliance, safeguarding of assets, authorisation of transactions and monitoring of operational performance. The Audit Committee and the Board review material financial, compliance and risk matters, supported by statutory and internal audit processes. As the Company expands its manufacturing footprint and consumer-facing operations, internal controls will continue to be strengthened in procurement, inventory, receivables, supplier advances, capital expenditure, product quality, regulatory compliance and information systems. Management remains committed to addressing audit observations and improving process discipline on an ongoing basis.

(g) Discussion on financial performance with respect to operational performance.

The following discussion should be read together with the audited financial statements and notes forming part of the Annual Report. Amounts are stated in Rs. lakh unless otherwise indicated.

Particulars	FY 2025-26	FY 2024-25	Change
Revenue from operations	65,121.91	76,239.97	(14.58%)
Total income	65,228.62	76,336.58	(14.55%)
EBITDA*	3,141.13	4,141.36	(24.15%)
Profit before tax	1,854.42	2,745.31	(32.45%)
Profit after tax	1,374.35	2,207.95	(37.75%)
EBITDA margin*	4.82%	5.43%	(61 bps)
Net profit margin	2.11%	2.90%	(79 bps)
Finance cost	791.61	893.14	(11.37%)
Cash flow from operations	2,112.05	(1,399.51)	Improved

* EBITDA is calculated as profit before tax plus finance cost and depreciation/amortisation. It is a non-GAAP analytical measure.

Revenue and profitability

Revenue from operations declined by 14.58% to Rs. 651.22 crore. EBITDA decreased by 24.15% to Rs. 31.41 crore and the EBITDA margin moderated from 5.43% to 4.82%. Profit before tax declined by 32.45% to Rs. 18.54 crore, while profit after tax declined by 37.75% to Rs. 13.74 crore. The net profit margin accordingly reduced from 2.90% to 2.11%. The decline in profitability was primarily attributable to lower revenue and the limited operating leverage available in a raw-material-intensive business.

Cost of materials consumed was Rs. 600.93 crore, representing approximately 92.28% of revenue from operations, broadly consistent with 92.07% in the preceding year. This underscores the importance of sourcing efficiency, commodity-price management, product mix improvement and higher utilisation of manufacturing capacity.

Costs and operating discipline

Finance cost reduced by 11.37% to Rs. 7.92 crore. Employee benefit expense declined to Rs. 6.60 crore from Rs. 7.90 crore, and other expenses reduced to Rs. 11.82 crore from Rs. 13.49 crore. These movements partly cushioned the impact of lower revenue. Depreciation and amortisation remained broadly stable at Rs. 4.95 crore.

Balance-sheet position and working capital

Particulars	31 Mar 2026	31 Mar 2025	Movement
Shareholders funds	18,106.94	16,732.58	8.21%
Total assets	27,492.16	25,449.01	8.03%
Total borrowings	6,913.36	7,088.42	(2.47%)
Inventories	994.09	4,215.36	(76.42%)
Trade receivables	10,537.98	9,503.81	10.88%
Advances to suppliers	4,879.11	1,486.48	228.23%
Capital work- in-progress	1,652.53	-	New investment

Shareholders funds increased by 8.21% to Rs. 181.07 crore, mainly through retention of the current-year profit. Total borrowings declined modestly to Rs. 69.13 crore; within this total, long-term borrowings reduced while short-term borrowings increased, reflecting the working- capital mix. The debt-equity ratio improved from 0.42 to 0.38.

Inventory reduced sharply to Rs. 9.94 crore from Rs. 42.15 crore, releasing funds from stock. Trade receivables, however, increased to Rs. 105.38 crore, and advances to suppliers increased to Rs. 48.79 crore. These movements require continued attention to collection efficiency, procurement terms and working-capital deployment. Capital work-in-progress of Rs. 16.53 crore reflects ongoing investment, including progress associated with manufacturing capacity.

Cash flows

Net cash generated from operating activities was Rs. 21.12 crore, compared with net operating cash outflow of Rs. 14.00 crore in FY 2024-25. The improvement was aided principally by the reduction in inventory, partly offset by higher trade receivables and other current assets. Net investing cash outflow was Rs. 12.92 crore, primarily reflecting capital work-in-progress, capital advances and fixed-deposit movements. Net financing cash outflow was Rs. 9.58 crore, including finance costs and net repayment of long-term borrowings, partly offset by higher short-term borrowings.

(h) Material developments in Human Resources/Industrial Relations front, including number of people employed.

No material developments.

(i) HUMAN RESOURCES AND INDUSTRIAL RELATIONS

Employees remain central to the Companys operational resilience and growth. During the year, the Company continued to focus on capability building, accountability, process orientation, quality awareness and safe working practices. Industrial relations remained generally cordial and no material adverse development was reported. The Company will continue to align manpower and skills with automation, capacity expansion, compliance and the requirements of a wider branded-product portfolio.

(j) details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations therefor, including:

Particulars	25-26	25-26
Debtors Turnover	6.50	11.41
Inventory Turnover	23.13	13.31
Interest Coverage Ratio	3.34	4.07
Current Ratio	2.30	2.64
Debt Equity Ratio	0.38	0.42
Operating Profit Margin (%)	7.49%	8.11%
Net Profit Margin (%)	2.11%	2.9%

 

Ratio	Unit of Measurement	31-03-2026	31-03-2025	Variance
Current ratio1	In multiple	2.30	2.64	-13.02%
Debt- Equity Ratio2	In multiple	0.38	0.42	-9.87%
Debt Service Coverage Ratio3	In multiple	2.57	1.41	82.69%
Return on Equity ratio4	In Percentage	7.59%	13.20%	-42.48%
Trade Receivable Turnover Ratio5	In multiple	6.50	11.41	-43.05%
Trade Payable Turnover Ratio6	In multiple	95.80	121.59	-21.21%
Net Capital Turnover Ratio7	In multiple	6.12	10.22	-40.14%
Return on Capital Employed8	In Percentage	13.77%	19.26%	-28.50%

Reasons for Variance more than 25%

1. Increase in Debt Service coverage ratio is due to significant repayment of loan in the current year

2. Decrease in return on equity ratio is due to decrease in Profit after tax in the current year

3. Decrease in Trade receivables turnover Ratio is due to increase in debtor balance in current year

4. Decrease in Net Capital Turnover Ratio is due to relatively decreased revenue compared to working capital employed

5. Decrease in Return on Capital Employed is due to relatively decreased revenue compared to working capital employed

(k) details of any change in Return on Net Worth as compared to the immediately previous financial year along with a detailed explanation thereof.

Return on equity, used as an indicator of return on net worth in the audited ratio analysis, declined from 13.20% in FY 2024-25 to 7.59% in FY 2025-26. The reduction of 5.61 percentage points (a relative decline of 42.48%) was primarily due to the 37.75% decrease in profit after tax, together with an 8.21% increase in shareholders funds through retained earnings.

(l) CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or outlook may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied due to economic conditions, commodity prices, crop availability, competition, government policy, regulatory developments, financing conditions and other risks described in this report. The Company undertakes no obligation to publicly revise any forward-looking statement except as required by law.

	For Jeyyam Global Foods Limited
	Periyasamy Rathinavel
Place: Chennai	Managing Director
Date: 28th August, 2026	DIN: 11555600