Mangalam Organics Ltd Management Discussions

"This years financial outcomes are not just numbers, theyre the result of our shared vision and hard work. Were committed to progressing with integrity, agility, and purpose."

BUSINESS OVERVIEW

Global Economic Overview

The financial year 2024-25 unfolded against the backdrop of a complex but gradually stabilizing global macroeconomic environment. Following a turbulent period marked by inflationary shocks, geopolitical unrest, and pandemic aftereffects, the global economy entered a phase of moderated but uneven recovery. Key trends during this period included disinflation in advanced economies, rebalancing of monetary policy, renewed fiscal prudence, and a heightened focus on supply chain resilience and energy transition.

Global GDP and Growth Dynamics

Global GDP growth in FY 2024-25 hovered around 3.0%, reflecting a cautious optimism. While the pace of growth was slower than the pre-pandemic average, it was considered healthy given the tight monetary conditions that dominated most of the previous year.

• Advanced Economies: The United States demonstrated notable resilience, supported by a strong labor market, robust consumer confidence, and declining inflation. Real GDP grew by approximately 2.2%, aided by tech sector performance and infrastructure investment. The Eurozone faced a more fragile recovery, with GDP growth averaging around 0.8%-1.0%, owing to subdued industrial activity, elevated energy costs, and weak external demand.

• Emerging Markets: Emerging and developing economies contributed disproportionately to global growth. India stood out with a projected GDP growth of 6.8%-7.2%, supported by strong domestic consumption, robust manufacturing output under PLI schemes, and increasing exports in IT services and pharmaceuticals. China, recovering from prolonged property market stress and regulatory tightening, posted moderate growth of around 4.5%-5%, driven by policy support and consumption recovery, albeit with persistent structural weaknesses.

Inflation Trends and Monetary Policy Shifts

Global inflation trends witnessed a downward trajectory throughout the year. Supply chain normalization, easing energy prices, and tight monetary policy collectively contributed to disinflation. However, core inflation remained sticky in several economies due to wage growth and persistent service sector

• The U.S. Federal Reserve, after holding interest rates at a 22- year high through much of 2023, initiated its first rate cuts in Q4 2024, reducing the federal funds rate by 50-75 bps through FY 2024-25.

• The European Central Bank followed suit, adopting a dovish stance in response to economic stagnation.

• Central banks in emerging markets, such as Indias RBI, maintained a relatively neutral tone-balancing growth imperatives with inflation management, keeping repo rates steady for most of the year.

Geopolitical Environment and Global Trade

Geopolitical risks continued to exert influence over global sentiment. The Russia-Ukraine conflict persisted, though its economic impact began to wane due to adaptation by energy markets and diversification of sourcing strategies. Tensions in the Middle East and concerns over Taiwan and the South China Sea kept markets on alert.

Despite these tensions, global trade volumes rebounded modestly, aided by improved maritime logistics, a revival in demand from ASEAN and Africa, and restocking activity in the West. However, trade fragmentation remained a concern, with continued moves toward regionalization and "friend-shoring."

Commodity Markets and Energy Transition

Commodity prices stabilized after two years of volatility. Crude oil prices averaged around USD 75-85 per barrel, influenced by OPEC+ production strategies, easing demand in China, and growing adoption of clean energy. Agricultural commodities saw mixed trends-moderate food inflation remained a concern in several developing countries due to erratic weather patterns and El Nino effects.

Sustainability and energy transition gained renewed focus, particularly in Europe and Asia. Investment in green hydrogen, solar, and EV infrastructure increased, driven by policy incentives and investor interest. Companies across industries began aligning their capital expenditure with ESG goals, and climate risk disclosures became more prominent in financial reporting.

Technology, Digital Transformation, and Workforce Trends

FY 2024-25 marked significant progress in AI adoption, with businesses integrating generative AI into operations, supply chains, and customer engagement models. While this drove efficiency, it also sparked policy debates around data privacy, job displacement, and ethical AI use.

Workplace transformation continued, with hybrid models becoming more entrenched. Upskilling initiatives were accelerated, especially in developing economies, to bridge digital divides and meet evolving skill requirements.

Navigating a Shifting Global Landscape: Outlook and Strategic Imperatives

Global growth is projected to moderate at 2.8% in 2025 and 3.0% in 2026, well below the pre-pandemic average of 3.7% seen between 2000 and 2019. This deceleration reflects ongoing macroeconomic headwinds, including geopolitical tensions, policy uncertainty, and structural economic shifts. While these challenges are significant, they are not insurmountable. There remains room for resilience and recovery, particularly through targeted reforms, strengthened global cooperation, and adaptive business strategies.

One of the most promising avenues for revitalizing global momentum lies in forging clearer trade agreements and enhancing cross-border collaboration. A stable and predictable policy environment could boost investor confidence and catalyze private sector activity. However, persistent risks such as financial market volatility, ageing demographics, and fiscal imbalances will continue to test the agility of economies and enterprises alike. Proactive policymaking and innovation-led growth models will be vital to offsetting these pressures and ensuring long-term economic sustainability.

In this evolving and often unpredictable climate, enterprises are likely to face longer decision-making cycles, coupled with heightened scrutiny around discretionary spending. To navigate this effectively, businesses must stay closely attuned to changing customer expectations, which often reflect broader shifts in social, economic, and technological landscapes.

The path forward calls for continuous transformation·not just as a reactive measure, but as a core strategic imperative. Organizations that build the capacity to anticipate change, adapt swiftly, and leverage disruption as opportunity will be best positioned to thrive. In an era defined by rapid change, resilience will stem not from rigid structures, but from agility, foresight, and a willingness to evolve.

In summary, the global economic landscape in FY 2024-25 reflected a world cautiously emerging from volatility into a phase of recalibrated growth. While uncertainties remained·from geopolitics to climate change·the year also offered opportunities for structural transformation, technological innovation, and deeper global cooperation.

With inflation gradually under control, financial markets stabilizing, and economies adapting to a more sustainable and digitized future, the foundations for more inclusive and resilient growth in the years ahead appear to be strengthening.

India Economic Overview

Indias economic journey through FY 2024-25 has been one of resilience and recalibration amidst shifting global and domestic landscapes. The country maintained its position as the fastest- growing major economy, underpinned by robust domestic demand, an ongoing investment push, and easing inflationary pressures. While global uncertainties and climate-related risks posed intermittent challenges, Indias sound macroeconomic fundamentals and forward-looking policy interventions provided a stable foundation for growth.

Steady Growth Amidst Global Headwinds

According to the second advance estimates by the National Statistical Office (NSO), Indias real GDP grew by 6.5% in FY 202425, following a stronger 9.2% expansion in FY 2023-24. Although slightly moderating, this growth rate is still well above the global average and reflects the sustained momentum in economic activity. The Indian economys nominal GDP is estimated to have increased by nearly 10%, reaching approximately ?331 lakh crore. Notably, the January-March 2025 quarter witnessed a GDP growth of 7.4%, pointing to a robust finish to the fiscal year.

On the supply side, Gross Value Added (GVA) rose by 6.4% in real terms. This expansion was broad-based, with the manufacturing and services sectors continuing to be primary contributors. The construction sector grew at 9.4%, and public administration, defence, and financial services remained buoyant. Government- led capital expenditure and a revival in private investment played key roles in sustaining output across industries.

Investment and Consumption Drive Momentum

Indias growth in FY 2024-25 was largely investment-led, with Gross Fixed Capital Formation increasing by 7.1% year-on-year and by a striking 9.4% in the final quarter. This reflected renewed business confidence, robust government infrastructure spending, and easing supply chain constraints. Private consumption also gained pace, growing by approximately 7.2%, aided by improved rural demand, festive-season tailwinds, and rising disposable incomes in urban centers.

The resilience of Indias domestic economy helped counterbalance the slower global trade and tightening financial conditions worldwide. Despite global monetary uncertainty and geopolitical tensions, Indias large domestic market provided a crucial buffer.

Inflation Eases, Monetary Policy Turns Supportive

A key highlight of FY 2024-25 was the significant easing in inflation. Headline Consumer Price Index (CPI) inflation moderated to an average of 3.3%, with a notable decline in core inflation (excluding food and fuel), which reached one of its lowest points since 2012. By April 2025, headline inflation fell to just 3.16%, well within the Reserve Bank of Indias (RBI) medium-term target of 4%.

This decline in inflation created room for a shift in the RBIs monetary policy stance. In a proactive move to support growth, the RBI reduced the policy repo rate by 50 basis points to 5.5% in June 2025·the largest rate cut in five years. This marked a transition to a more neutral and accommodative stance, aimed at fostering investment and credit growth while keeping inflation expectations anchored.

Challenges and Risks on the Horizon

Despite these encouraging trends, several risks remain on the radar. Volatility in food prices·particularly vegetables and pulses· continued to pose short-term inflationary risks. Additionally, external uncertainties, including geopolitical tensions, volatile oil prices, and climate-related shocks, remain key factors that could impact growth and price stability.

Furthermore, while private investment is picking up, sustaining its momentum requires ongoing policy clarity, regulatory streamlining, and improved ease of doing business. The governments continued thrust on infrastructure, digitization, and skill development will be essential in unlocking the full potential of the economy.

Outlook for FY 2025-26 and Beyond

Looking ahead, India is projected to grow at a similar pace of around 6.5% in FY 2025-26, according to RBI estimates. The World Bank and IMF also forecast growth in the 6.3%-6.7% range. With inflation expected to remain under control and interest rates easing, the conditions are conducive for private consumption and investment to lead the next phase of expansion.

Indias strong fundamentals·ranging from a young demographic profile and expanding digital economy to rising global investor confidence·position it well to continue as a global growth engine. The ability to adapt to emerging challenges, invest in innovation, and remain fiscally prudent will determine the sustainability of this growth trajectory.

For the year 2025, the IMF projected Indias growth rate at 6.5 per cent. It attributed robustness and strength in domestic demand and a rising working-age population behind its growth projections. Notably, Indias GDP expanded at 8.2 percent in 2023-24. The Indian economy exhibits robust fundamental policies by Reserve Bank of India (RBI), which plays a key role in maintaining stability through its adept monetary policy framework. By carefully managing interest rates and liquidity, the RBI aims to control inflation while fostering sustainable economic growth. It ensures a resilient financial sector, contributing to overall economic stability. The resilience of Indian economy has navigated into the stock market to all time high. The record spiked stock market reflects investor confidence in Indias long-term growth prospects, driven by reforms, demographic dividends, and technological advancements. (Source: Ministry of Statistical Programme and Implementation, Government of India)

The tax exemptions announced in the budget will increase consumer spending and may boost GDP by 0.6% to 0.7%. However, uncertainty around the tariff rates imposed by the United States on Indian exports could offset those gains by 0.1% to 0.3%.

Two opposing forces are set to define Indias economic trajectory in fiscal 2025 to 2026

The potential positive impact of tax incentives: The Union Budgets tax stimulus could raise GDP at least by 0.6% to 0.7% this fiscal (see "Section 1: The Union budgets strategic tax stimulus to boost economic activity"). Besides, lower inflation, range-bound global oil prices, lower borrowing rates, and more liquidity (due to the easier monetary policy), and a more certain global environment by the end of the year will help boost sentiment. All of these factors will considerably push domestic consumer spending and investments forward.

The potential negative impact of uncertainty in global trade networks: At the time of writing, India faces an ad valorem baseline tariff rate of 10% on its goods exports to the United States. Since this rate is applicable over and above the 2023 trade-weighted average most-favored nation (MFN) tariff rate of 2.2%, the effective trade-weighted average MFN tariff rate stands at 12.2%.

The remaining potential differential tariff rate imposed on India, of 16% (for a total reciprocal tariff rate of 26%, which varies across countries and is currently paused for three months), could take the effective trade-weighted average MFN tariff rate to 28.2% on Indias exports to the United States by the end of the fiscal year. This may potentially shave 0.1% to 0.3% off Indias growth (see "Section 2: The potential impact of global trade uncertainty").

Considering the net impact of these two factors on growth (discussed at length in this edition), growth in the current fiscal (with likely growth between 6.3% and 6.5%), and forecasts growth between 6.5% and 6.7% in the next (2025 to 2026).

CHEMICAL INDUSTRY

Global Chemical Industry

The global chemical industry continued its robust growth trajectory in FY 2024-25, fueled by a resurgence in industrial activity, innovations in sustainable manufacturing, and the accelerating adoption of digital technologies. The global chemical market grew from US$5.6 trillion in 2024 to approximately US$6.2 trillion in 2025, registering a compound annual growth rate (CAGR) of 9.7%. This momentum reflects the sectors increasing importance across multiple industries such as pharmaceuticals, agriculture, packaging, electronics, automotive, and renewable energy.

A significant transformation is underway globally as companies

move from traditional volume-based models to value-driven operations, focusing on green chemistry, biodegradable materials, and low-emission production. This shift is largely driven by stricter environmental regulations and evolving consumer preferences for sustainable products. Moreover, digital transformation and Industry 4.0 integration-including AI, IoT, and advanced analytics·are enhancing productivity, safety, and supply chain resilience across the sector.

Amid global geopolitical tensions and energy price volatility, chemical manufacturers worldwide have shown remarkable adaptability. In the United States, for example, continued growth in industrial output and stable GDP expansion have supported increased chemical demand. The American Chemistry Council forecasts volume growth of approximately 3.4% for 2024-25, underpinned by domestic investment and reshoring initiatives. In Europe, the industry focused on energy diversification and decarbonization strategies, while in Asia-Pacific·particularly China and India·growth remained driven by infrastructure development, urbanization, and export-oriented production.

The future of the global chemical industry lies in balancing sustainability, innovation, and risk management, with companies that integrate circular economy principles and low-carbon technologies expected to lead in both profitability and resilience.

Outlook & Strategic Implications

Region	Key Trends & Outlook
Global	Continued expansion through sustainability, specialty chemicals, and digital efficiency. Asia- Pacific leads growth.
India	Sustained export momentum, bolstered by policy support, regional shifts, and industry modernization.

Indias Chemical Industry - FY 2024-25

India solidified its position as one of the fastest-growing chemical markets in the world during FY 2024-25, with strong policy support, export competitiveness, and sector-wide modernization efforts driving performance. The sector is valued at over US $220 billion, with aspirations to reach US $1 trillion by 2040, positioning it as a cornerstone of the Indian manufacturing ecosystem.

During FY 2024-25, Indias chemical exports rose to an estimated US$30-31 billion, reflecting a recovery from the previous fiscal years US $29.3 billion. Gujarat continued to dominate the sector, contributing nearly 46.2% of total chemical exports, followed by Maharashtra and Telangana. Key product categories driving this growth include specialty chemicals, dyes and dye intermediates, agrochemicals, and industrial gases.

Indias strengths in generic manufacturing, specialty chemicals, and biosimilars have made it a preferred sourcing destination in the global value chain. Moreover, the country accounts for about 16-18% of global dye production and remains the fourth-largest agrochemical producer in the world. The focus on "Make in India"

and Production-Linked Incentive (PLI) schemes has encouraged domestic capacity expansion and import substitution.

Policy measures including reduced import duties, environmental compliance reforms, and significant infrastructure development have further boosted investor confidence. The Indian governments commitment to decarbonization and digitization of industrial operations has encouraged chemical companies to modernize operations and adopt greener processes.

The industry, however, also faces challenges such as feedstock dependency, regulatory complexity, and global price fluctuations. Nevertheless, the strong fundamentals, proactive government policies, and rising global demand for high-quality, cost-effective chemical products position India for sustained growth.

FY 2024-25 was a landmark year for the global and Indian chemical industries, marked by resilience, transformation, and forward momentum. While global players focused on sustainable innovation and technological adoption, India carved a niche for itself as a reliable, high-growth manufacturing hub with strong export capabilities. As the global economy shifts towards greener, more localized supply chains, the chemical industry will continue to play a pivotal role in driving innovation, supporting core industrial growth, and contributing to a sustainable future.

INDUSTRY OVERVIEW

Pine Chemicals

The pine chemical industry thrives on the foundation of sustainability, having long championed the creation of ecofriendly, value-added products derived from renewable natural resources·well before sustainability became a global imperative. Extracted from pine trees (genus Pinus) through processes such as kraft pulping, tree tapping, and stump harvesting, pine chemicals like crude sulfate turpentine, gum turpentine, and wood turpentine serve as the raw material base. These extracts are refined in biorefineries into a diverse portfolio of products used across industries including paints, inks, adhesives, fragrances, food flavors, additives, vitamins, and even automotive components like tires. With its wide-ranging applications and bio-based origins, the pine chemicals sector continues to experience robust growth and increasing relevance in the global shift toward greener alternatives.

Estimates place the global market at approximately USD 6.1 billion in 2025, growing from around USD5.76 billion in 2024 at a 5.9% CAGR. Projected growth through 2029 points to a market reaching USD 7.84 billion, riding a 6.5% CAGR. Longer-term forecasts extend this trend, with expectations of reaching USD 9.44 billion by 2034 at a 4.5% CAGR from 2025-2034.

Terpenes

Terpenes are naturally occurring aromatic compounds predominantly found in coniferous plants and various herbs. Derived from turpentine·a by-product of pine chemicals rich in resin acids and hydrocarbons·terpenes are valued for their distinctive scent and chemical resilience. These properties make them essential ingredients in a wide range of applications, including essential oils, industrial fragrances, flavoring agents, and solvents. The demand for terpenes continues to rise, propelled by their expanding use across industries such as cosmetics, food and beverages, pharmaceuticals, rubber, and paints & coatings. However, the industry faces notable challenges such as supply volatility and the high cost associated with terpene extraction. Even so, with increasing commercial applications and growing investment in bio-based solutions, the terpene market is poised for steady growth, attracting new entrants and fostering innovation.

Valued at around US $690 million in 2024, projected to grow to US$734 million in 2025, and further to US$1.2-1.35 billion by 2033, at a CAGR between 6.4% and 8.3%.

Synthetic Resin

The synthetic resin industry remains a cornerstone of modern material science and industrial manufacturing, playing a critical role in various end-use sectors such as construction, automotive, packaging, electrical and electronics, and healthcare. These manmade polymers·including polyacrylamide, polymethacrylate, and polystyrene·are widely used for their high durability, mechanical stability, and chemical resistance. In analytical applications like chromatography, synthetic copolymers such as polystyrene divinylbenzene and methacrylate copolymers serve as base matrices due to their robustness and ability to operate across wide pH ranges.

As of FY 2024-25, the global synthetic resin market is witnessing sustained growth. The market is projected to reach a value of USD 619.6 billion in 2025, expanding at a compound annual growth rate (CAGR) of 5.0% over the forecast period to reach nearly USD 961.2 billion by 2034. This expansion is underpinned by steady industrial growth, particularly in emerging economies, and increasing demand for durable, lightweight, and versatile materials.

The synthetic resin industry continues to evolve as a critical segment of the global chemical market. FY 2024-25 marks a period of sustained growth, technological advancement, and transformation toward sustainability. With expanding applications, robust demand from both mature and emerging markets, and a shift toward greener alternatives, the industry is poised for long-term development. Companies that invest in innovation, eco-friendly materials, and supply chain resilience will be best positioned to thrive in the coming decade.

Aroma Chemicals

The global aroma chemicals market reached USD 7.3 billion in 2024 and is projected to grow to USD7.55 billion in 2025, with a CAGR of approximately 6.0%, propelled by expanding demand for personal care products, fragrances, and natural ingredients. Forecasts indicate this market will continue its steady ascent, reaching USD 11.4 billion by 2033, at a longer-term CAGR of 5.1%.

Growth is underpinned by several key forces:

• Consumer preference for natural and sustainable ingredients is reshaping demand patterns and product formulations.

• Technological innovations, including supercritical fluid and microwave-assisted extraction, are enhancing yield, purity, and cost-efficiency.

• Broader application diversity·from fine fragrances and cosmetics to food, beverages, toiletries, and laundry products·is fueling market expansion.

• Asia-Pacific leads consumption, holding approximately 31% of the global market, driven by rising affluence, urbanization, and expanding product penetration.

India Aroma Chemicals Market - FY 2024-25

Indias aroma chemicals sector continues its upward trajectory. Valued at USD284.4 million in 2024, the market is expected to grow at a CAGR of 5.2%, achieving roughly USD460.4 million by 2033. According to Verified Market Research, a similar estimate places it at USD 230 million in 2024, aiming for USD 366.6 million by 2032 at a 6.0% CAGR verifiedmarketresearch.com.

The industrys growth drivers include:

• Expanding personal care and fragrance sectors with consumers opting for upscale, exotic, and natural scents

• Rising demand for tailored fragrance solutions and aromatherapy ingredients that support emotional well being.

• Adoption of advanced, greener extraction techniques like supercritical fluid and microwave-assisted methods.

• Growth in flavors for food & beverage and homecare products, anchored by increasing consumer spending on premium and hygienic goods.

Key Trends & Strategic Outlook

Trend	Implication
Natural & Sustainable Focus	Brands are formulating with clean-label, plant-based ingredients to meet consumer expectations and regulatory mandates.
Efficiency- focused Extraction	Investment in novel techniques enhances quality, reduces costs, and supports scale.
Regional Shifts in Demand	Asia-Pacifics strong growth makes it a strategic priority for manufacturers.
Biotech Integration	Companies are partnering and merging to invest in biotech solutions and traceable sourcing
Application Diversification	Growth across fragrances, personal care, F&B, detergents, and aromatherapy products.

In FY 2024-25, the aroma chemicals market is positioned for sustained growth, driven by consumer preferences, technological innovation, and expanded applications. Globally, the market aims to hit USD7.5 billion in 2025 with long-term forecasts nearing USD 11.4 billion by 2033. India, while smaller in scale, mirrors this trajectory-expected to reach USD 280-300 million in 2024, with projected expansion into the USD 350-460 million range over the next decade.

Opportunities	Threats
1. Rising demand for pine chemicals, with the market projected to grow at 4.3- 4.6% CAGR through 2034.	1. Volatile raw material prices impacting cost stability.
2. India has abundance of natural ingredients like spice and herb used for making aroma chemicals	2. Strong competition from Chinese and global players.
3. The growth of population in India will lead to more demand and consumption of Camphor for religious purposes.	3. Economic slowdowns affecting demand and investment.
4. Apart from religious use, Camphor is also being used by the young generation as car freshener and room freshener for its numerous benefits related to air purification	4. Currency fluctuations disrupting international trade margins.
5. Demand for synthetic resin is growing fast due to its applications in flexible packaging and automotive sector	5. Competition from unorganised and price-driven domestic players.
6. Growth of Flavour & Fragrance (F&F) and nutraceutical sector is driving demand for aroma chemicals significantly	6. Geopolitical tensions affecting exports and supply chains.
7. Growth in global aroma chemicals market ( 6% CAGR to reach $7.5B in 2025)	7. Low R&D investment limiting innovation and competitiveness.
	8. Slowdown in FMCG sector reducing downstream chemical demand.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

The key operational segment of the Company is Chemical manufacturing.

Company OVERVIEW

Mangalam Organics Limited (MOL) continues to consolidate its position as one of Indias foremost manufacturers in the pine chemicals segment. The Company leverages its expertise in natural extraction to develop high-value chemical products catering to both industrial and consumer markets.

Operating under a single business segment - Chemicals, MOLs portfolio spans Terpenes and Synthetic Resins, with wide applications in pharmaceuticals, flavours & fragrances, rubber, automotive, packaging, paints, and religious use.

Strategic Positioning

• Backward integrated operations rooted in natural raw materials, ensuring consistent quality and supply.

• Strong differentiation from synthetic chemical peers due to natural sourcing, non-reliance on crude oil prices, and ecoconscious manufacturing.

• Growing international footprint with exports to USA, Europe, Asia, Africa, and the Middle East.

• Expansion in domestic retail camphor market through its 100% subsidiary, Mangalam Brands Private Limited.

Segment-wise Performance

The Company operates primarily in the B2B segment, with diversified chemical products extracted from pine-based sources. It has also begun strengthening its B2C business through branded camphor offerings, now housed under its subsidiary.

Business Segments	Products	Applications
B2B - Terpene	• Camphor	Camphor: Religious use, healthcare products, hygiene products
	• Isobornyl Acetate
	• Isoborneol	Isobornyl Acetate: Fragrance and flavor
	• Dipentene
	• Sodium Acetate	Isoborneol: Fragrance and flavor
		Dipentene: Paints, cleaning and degreasing agents
		Sodium Acetate: Textile and dyes industry, Leather tanning
B2B - Synthetic Resin	• Terpene Phenolic Resin	Adhesives, Tyres, Rubbers, Chewing Gum, Printing Ink
	• Alkyl Phenolic Resin
	• Rosin Esters

Manufacturing Capabilities

The Company boasts a state-of-the-art manufacturing facility spread across 44 acres (178,062 sq. meters) at Kumbhivali village in Raigad district, Maharashtra. Strategically located on the Mumbai- Pune Expressway, the plant enjoys seamless Pan-India connectivity, with proximity to the Jawaharlal Nehru Port (JNPT) just 60 km away, ensuring efficient access to global markets.

The facility is equipped with high levels of automation and driven by a robust operational ecosystem that tightly integrates quality control, warehousing, packing, dispatch, maintenance, and R&D. Continuous investment in technology upgrades and Lean Six Sigma practices ensures enhanced productivity, minimal downtime, and consistent product quality.

The manufacturing processes are fully compliant with statutory pollution control norms, and the Company has adopted environmentally responsible operations, including effluent treatment systems, energy-efficient equipment, and waste minimization practices. The plant undergoes regular audits to reinforce workplace safety, sustainability, and regulatory compliance.

Future expansion is being planned with a focus on transformation, energy optimization, and capacity scaling to support growing domestic and international demand.

Product Portfolio

1. TERPENES

MOL manufactures a wide range of high demand products under this sub-segment. This is the key raw ingredient for producing camphor and related products. The Company is focusing on production efficiency and quality control so that it can produce international quality intermediate products and their derivatives for the fragrance and flavour industry. The Company has been exploring new product development from terpenes and is further exploring the retail opportunity to expand its market reach through diversification.

Camphor

Camphor is the primary product of the Company which contributes 80% of total sales in Terpenes. Due to its ability to impart a sense of complete purity to the religious devotees, it finds the widest application in religious use in the domestic market. This is a naturally derived product that completely burns off with no residue. Camphor was earlier sold as a commodity. However, as it presents a large retail opportunity, it enables the Company to forward integrate and diversify into the FMCG space by retailing the products through Modern Trade, General Trade and E-Commerce. The Company continues to leverage the growing retail opportunity and is confident of continuing growth in the years ahead. It continues to grow capacities and grades offered from the same unit to capture a larger market share in the domestic and export markets. MOL has the following registered brands.

Retail Portfolio

Mangalam	Camphor tablets for religious purposes and Bhimseni Camphor for Aroma therapy
CamPure	Home care products based on camphor such as Camphor Cone, Camphor Sticks, Camphor Air Purifiers, Camphor Hand Wash, Camphor Soap Bar, Camphor Hand Sanitizer, Camphor Liquid Vaporiser.

Isobornyl Acetate

With the expansion coming online MOL is able to expand its product offering by also supplying intermediate product Isobornyl Acetate to leading fragrance and flavour companies across the world. Presently the product is in approval stage at various companies and we look forward to the time when the product will be a major driver for growth.

Isoborneol

Isoborneol finds application in fragrance and flavour industries across the world. The product has also got accelerated growth in the last few years on account of increased consumption of isoborneol flakes used for aromatherapy and well-being.

Dipentene

Dipentene is a by-product in Camphor manufacturing and is used as a solvent in the paints industry. The Company offers various grades of this material. Dipentene is a ready substitute in formulations of cleaning and degreasing agents, as Limonene faces supply shortages. It is also witnessing demand growth in the export market as a substitute for Limonene.

Sodium Acetate

Sodium Acetate is used as a dye intermediate by textile and dye manufacturers. It also finds application in leather tanning industry and is exported to Europe.

2. SYNTHETIC RESINS

MOL manufactures three broad types of synthetic resins, with each of them having a large domestic and export market. The Company is confident of all the categories in this segment and is continuing its efforts to enhance margins and build higher volumes in each of them.

Terpene Phenolic Resin

Terpene Phenolic Resin finds application in the adhesive, tyre and rubber industries as a tackifier. The Company foresees an increase in volumes, revenue and profitability over the years ahead.

Alkyl Phenolic Resin

Alkyl Phenolic Resin finds application in Neoprene and Chloroprene rubber-based adhesives. The Company is

working with consultants to improve its quality of products as per global standards and leverage the growing export opportunities.

Rosin Esters

Rosin Esters finds application in pressure sensitive adhesives. The Company is working with consultants to improve its quality of products as per global standards and leverage the growing export opportunities.

FINANCIAL PERFORMANCE

During FY 2024-25, the Company recorded a modest growth of 1.09% in Revenue from Operations, increasing from Rs. 40,543.35 lakhs in FY 2023-24 to Rs. 40,984.75 lakhs. However, despite this marginal rise in revenue, the Company delivered a strong improvement in profitability, driven by operational efficiencies and better cost management. Other income declined by 18.06% to Rs. 203.78 lakhs, resulting in total income of Rs. 41,188.53 lakhs, compared to Rs. 40,792.01 lakhs in the previous year.

On the expense side, the cost of materials consumed increased by 22.29% to Rs. 29,970.84 lakhs, reflecting higher input prices or volumes. Purchases of stock-in-trade fell sharply by 55.36%, and a favourable inventory movement contributed to better margins, as changes in inventories showed a credit of Rs. 1,301.12 lakhs compared to a debit of Rs. 1,227.19 lakhs last year. While employee benefit expenses rose by 11.08%, and finance costs increased significantly by 38.17%, other expenses declined by over 52%, highlighting effective cost rationalization. As a result, total expenses marginally decreased to Rs. 40,120.26 lakhs from Rs. 40,444.75 lakhs.

The above efficiencies translated into a Profit Before Tax of Rs. 1,068.27 lakhs, a growth of 207.60% over the previous years Rs. 347.26 lakhs. After accounting for tax expenses, the Net Profit stood at Rs. 775.98 lakhs, a remarkable increase of 250.94% compared to Rs. 221.17 lakhs in FY 2023-24. Total Comprehensive Income also rose by 86.48% to Rs. 759.99 lakhs, despite a higher actuarial loss under Other Comprehensive Income.

On the earnings front, the Earnings Per Share (EPS) improved significantly from Rs. 2.53 to Rs. 8.87. Furthermore, the Companys EBITDA grew by 51.68%, rising from Rs. 25.51 crore in FY 202324 to Rs. 38.69 crore in FY 2024-25, showcasing stronger core operating performance.

In summary, while revenue growth was subdued, the Companys strong control over operational and indirect expenses, coupled with improved efficiency in resource allocation, led to a significant improvement in profitability and shareholder value.

Details of Significant Changes in Key Financial Ratios

Key Financial Ratios for FY 2024-25 are as under:

Interest Coverage Ratio
FY 2024-25	FY 2023-24
1.53%	1.24%

Increase in Interest Coverage Ratio was due to profit on account of better yield and various cost cutting measures adopted and well stocked up raw material by the Company as compared to FY 202324.

Current Ratio

FY 2024-25	FY 2023-24
1.08%	1.32%

Company has availed substantial working capital facility which resulted in marginally lower Current ratio as compared to FY 202324.

Debt Equity Ratio

FY 2024-25	FY 2023-24
1.04%	0.67%

Decrease in Debt Equity Ratio as compared to FY 2023-24 was due to considerable increase in profit and decrease in long term liability of the Company.

Operating Profit Margin (%)

FY 2024-25	FY 2023-24
7.56%	4.46%

Increase in Operating profit margin was due to better yield and various cost cutting measures adopted and decrease in raw material prices during the year as compared to FY 2023-24.

Net Profit Margin (%)

FY 2024-25	FY 2023-24
1.85%	1.01%

Increase in Net profit margin is due to better yield and various cost cutting measures adopted and decrease in raw material prices during the year as compared to FY 2023-24.

Return on Net Worth

FY 2024-25	FY 2023-24
2.62%	1.44%

Profitability has been increased due to better yield and various cost cutting measures adopted and decrease in raw material prices during the year, which resulted in high return on net worth as compared to FY 2023-24.

RISKS AND CONCERNS

Risks are a part of any organizational setup, the bigger the market, higher the risks. Operating in a highly competitive and changing economic and business environment brings its own share of risks. Some of the key risks specified by the Company are:

Raw material price risk: Fluctuation in the price of raw materials or shortage in the supply of raw materials used by the Company poses a threat to its revenue and competitive position.

Operational risk: Functional and Operational risks arising out of various operational processes.

Business Continuity risk: Business Continuity risks arising out of climate change related and other disruptions like natural disasters, IT outages, pandemic, terror and unrest, power, water and other resource disruptions etc. which may challenge or impact our customers business and availability of People and process, Technology and Infrastructure.

Competition risk: Any market share losses for the Company to the global and domestic players will adversely impact the financial results of the Company.

Macroeconomic risk: Any slowdown in economic growth of the country and resulted drop in consumption may lead to a slowdown in FMCG sector. Consequently, this would adversely affect Indian Chemical industry causing lower capacity utilizations for the Company.

Concentration of customers risk: Dependency on a few large clients also poses a risk to revenue as any fall in the order book number can impact the business negatively.

Regulatory Compliance risk: Regulatory Compliances covering various federal, state, local and foreign laws relating to various aspects of the business operations are complex and noncompliances can result in substantial fines, sanctions etc.

The Company monitors and analyses all relevant parameters relating to above risks for the manufacturing site to minimise risk associated with protection of environment, safety of operations and health of people at work with reference to statutory regulations and guidelines defined. The Company fulfils its legal requirements concerning emission, waste water and waste disposal. Improving work place safety continued to be top priority at the manufacturing sites.

MANAGEMENT & INDUSTRY OUTLOOK

Management Outlook:

Mangalam Organics Limited enters FY 2025-26 with renewed confidence and clarity of purpose. Building on our legacy of quality and trust, the Company is strategically aligned to achieve sustainable and profitable growth through the following focus areas:

• Uncompromised Quality: Upholding the highest standards in product purity to reinforce our brands credibility across global markets.

• Capacity Expansion: Unlocking scale by ramping up production facilities to meet surging demand across sectors and geographies.

• Green Growth: Strengthening our commitment to sustainability with eco-conscious operations, responsible resource use, and regulatory alignment.

• Strategic Alliances: Tapping into new domestic and international partnerships to accelerate innovation, distribution, and market reach.

• People-First Culture: Prioritising employee safety, well-being, and skill advancement to build a future-ready workforce.

• Smart Supply Chains: Investing in agile logistics and technology-driven supply chain systems to optimise efficiency and reduce costs.

• Market Intelligence: Staying ahead of industry shifts with real-time insights into consumer trends, regulations, and global dynamics.

MOL remains steadfast in its mission to deliver value to stakeholders through innovation, operational excellence, and future-focused leadership.

INTERNAL CONTROLS

Mangalam Organics Limited has a robust internal control framework designed to ensure operational efficiency, accuracy in financial reporting, and strict compliance with legal and regulatory requirements. The control mechanisms are aligned with the scale and complexity of the Companys operations and are continually enhanced through upgraded processes, audit trails, and expert advisory support when required.

The internal audit function is carried out by the in-house Finance and Accounts team, with periodic reviews of processes and controls. Audit findings are rigorously discussed and evaluated at both the management and Audit Committee levels. The Audit Committee, comprising independent Directors, plays a vital oversight role, ensuring that controls remain relevant, reliable, and effective, and recommends improvements wherever required.

Human Resources

At Mangalam Organics, we view our human capital as the foundation of sustainable growth. In an era shaped by Artificial Intelligence, technological change, and evolving work paradigms, we continue to empower our people with the skills, tools, and opportunities to thrive.

Our core belief is that while talent is universal, opportunity is not. Thus, our HR strategy is built on fostering inclusivity, equity, and continuous learning. We invest in structured training programs and leadership development initiatives to enhance productivity and innovation, while nurturing a values-driven culture based on fairness, integrity, and respect.

As of March 31, 2025, the Company employed 349 full-time personnel, across various functions. Our people-centric approach ensures that we are future-ready, agile, and resilient.

Cautionary Statement

This document contains certain forward-looking statements pertaining to the future performance, outlook, and strategies of Mangalam Organics Limited. These statements are based on current assumptions and expectations, and involve known and unknown risks and uncertainties that may cause actual outcomes to differ materially.

Readers are advised not to place undue reliance on these projections. Factors such as market dynamics, regulatory changes, raw material price volatility, geopolitical developments, and economic conditions could significantly alter actual results.