Maa Jagdambe Tradelinks Ltd Management Discussions

Company Overview

Maa Jagdambe Tradelinks Limited ("MJTL" or "the Company") is a public limited company incorporated in India and listed on the BSE Limited. The Company is headquartered in Mumbai, Maharashtra, and is engaged in the supply and commercial trading of branded dairy and organic food products under a franchise arrangement with Amul, covering the Amul Fresh, Amul Frozen, Amul Dairy and Amul Organic product lines. The Companys principal customers are institutional and commercial buyers in the Hotels, Restaurants and Caterers ("HoReCa") segment, reflecting a business model built around reliable, high-frequency distribution of perishable and ambient dairy-based products to quality-conscious commercial kitchens. During FY 2026-27, the Company also established a dedicated branch at Surajgarh, Jhunjhunu District, Rajasthan, through which it undertakes wholesale FMCG distribution, participates in public and private tenders, and supplies goods to educational institutions and regional commercial hospitality clients.

Industry Structure and Developments

Indias organised dairy and FMCG distribution industry continues to benefit from rising urbanisation, growing out-of-home consumption, and increasing formalisation of institutional food-service procurement. The HoReCa segment in particular has seen sustained recovery and structural growth as hospitality, tourism and organised catering activity expand across metro and Tier-2/3 markets, driving demand for consistent, quality-assured supply of dairy, frozen and organic products.

The dairy and allied products segment remains characterised by strong brand loyalty, regulatory oversight on food safety and quality standards (FSSAI), and a cold-chain- dependent distribution architecture that rewards distributors with established logistics networks and franchise relationships with reputed brands such as Amul. Wholesale FMCG distribution and institutional supply — including to government and private tenders and to educational institutions — is likewise gaining structure, with digitisation of tender processes (GeM and State e-procurement portals) improving transparency and widening the addressable market for compliant, well-capitalised trading companies.

Opportunities and Threats

Opportunities

• Continued expansion of organised HoReCa demand across India, supporting volume growth for Amul Fresh, Frozen, Dairy and Organic product lines.

• Regional diversification through the Companys branch at Surajgarh, Jhunjhunu District, Rajasthan, opening access to wholesale FMCG distribution, tender-based institutional supply, and educational-institution supply contracts in a new geography.

• Growing digitisation of public and private tender processes, widening the pipeline of institutional supply opportunities available to the Company.

• Planned diversification into bullion product trading, which, if executed prudently, may provide an additional, less seasonally-correlated revenue stream and broaden the Companys long-term market presence.

• Continued strength of the Amul brand and franchise relationship, which supports customer trust and repeat institutional business.

Threats

• Margin pressure from competition among regional distributors and other wholesale FMCG trading entities operating in the same territories and tender markets.

• Perishability and cold-chain dependence of dairy and frozen product lines, which expose the Company to spoilage, logistics disruption and working-capital intensity.

• Concentration risk arising from reliance on a single principal franchise relationship (Amul) for a substantial part of the trading business.

• Price and demand volatility inherent to bullion trading, a business the Company is only now looking to enter, which carries a different risk profile (price, counterparty and regulatory) from the Companys existing FMCG trading operations.

• General macroeconomic factors, including inflation in input and fuel costs, interest- rate movements affecting working-capital costs, and changes in government procurement policy.

Segment-wise/Product-wise Performance

Your Company has only one reporting segment.

Outlook

Looking ahead, the Company intends to consolidate and grow its HoReCa-focused Amul distribution business while scaling the Surajgarh, Rajasthan branchs wholesale FMCG distribution, tender participation, and institutional (educational institution) supply activities. The Company also plans to scale up its overall product offerings and to venture into bullion product trading as a means of diversifying its long-term market presence and revenue base beyond FMCG trading and distribution. The Board and management will evaluate the bullion trading opportunity carefully, including the additional working-capital, regulatory, custody and risk-management requirements it entails, before committing material capital to the new line of business.

Risks and Concerns

• Working capital and credit risk associated with institutional and tender-based customers, including educational institutions and HoReCa clients, where payment cycles can be extended.

• Execution risk in scaling the recently-opened Surajgarh branch and in successfully bidding for and fulfilling public and private tenders.

• Dependence on the continuity of the Companys franchise/distribution arrangement for Amul product lines.

• Regulatory and compliance risk under food safety (FSSAI), GST, and public- procurement regulations applicable to the Companys trading and tender-supply activities.

Internal Control System and their Adequacy:

The internal control systems have been designed to effectively and efficiently handle the dynamic and complex nature of business operations of the Company. The internal control systems and environment are commensurate to the scale and volumes of the business with adequate segregation of roles and responsibilities. The executives of the Company keep themselves abreast with the detailed documentation of its policies and SOPs, which are regularly reviewed and updated by the management. The statutory auditors of the Company critically review the internal control environment to arrive at their opinion about the financial performance of the Company.

The Company also has a strong internal audit framework as approved by the Audit Committee which ensures detailed coverage of the processes and systems needed to safeguard its assets, prevention and detection of errors and frauds, ensure accuracy and completeness of accounting transactions thus enabling timely preparation of reliable financial information. The various committees of the board, including the Audit Committee, periodically review the observations and recommendations of the internal auditors to further improve the systems and processes.

Safety, Health and Environment

Your Company as a matter of policy gives greater importance to safety, health and environment and also ensures compliance with applicable legislative requirements.

Human Resources

People are our key pillars of strength. This belief was further strengthened as our people showed tremendous resilience and extraordinary commitment during the pandemic times to bring the Company back to its core performance. The Company firmly believes that Human Capital is its most important asset.

Key Financial Ratios:

In accordance with the Securities and Exchange Board of India (Listing Obligations and disclosures Requirements) Regulations 2018 (Amendment) Regulations, 2018, the Company is required to give details of significant changes in Key sector-specific financial ratios.

The ratio of current year is not comparable with previous year since there was no business activity in previous year due to unfavorable market conditions.

Cautionary Statement:

The report contains forward looking statements describing expectations, estimates, plans or words with similar meaning. Your Companys results may differ depending on various factors. Your Company cannot guarantee that the assumptions and estimates in the forwardlooking statements are accurate or will be realized.