Mangalam Organics Ltd Management Discussions

MACROECONOMIC PERFORMANCE

Global Economic Overview

The global economy is facing another major shock. The conflict in the Middle East has triggered sharp increases in energy prices, renewed inflationary pressures, and fueled expectations of tighter monetary policy. Global growth is projected to slow from 2.9 percent in 2025 to 2.5 percent in 2026 the lowest rate since the COVID-19 pandemic amid weaker prospects for economies dependent on energy imports and those directly affected by hostilities. Activity is expected to firm recover, monetary easing resumes, and trade strengthens. Risks to the outlook remain skewed to the downside.

A renewed escalation of hostilities or more prolonged disruptions to commodity flows could further raise commodity prices, intensify inflationary pressures and food insecurity, trigger financial stress, and lower growth. If energy supply disruptions prove to be more severe than assumed and are accompanied by substantial financial stress, global growth could fall to just 1.3 percent in 2026. Persistent trade policy uncertainty, geopolitical strains, and weather-related shocks also pose material risks.

artificial intelligence (AI)-related Ontheupside, broadeningof investment and its adoption could lift activity. Policy action is critical to address ongoing challenges. Enhanced global cooperation is needed to safeguard energy and food security, bolster the trading system, and advance the energy transition. Domestically, policy makers will need to balance controlling inflation with supporting activity, strengthen fiscal sustainability, and maintain financial stability. Slower growth prospects translate into reduced investment, constrained hiring, and tighter fiscal space, compounding the challenge of creating jobs in EMDEs with growing workforces in an era of potentially change linked to AI. Meeting this challenge will require a concerted agenda centered on the conditionsfor job creation: investing in physical, human, and digital capital; fostering a business-friendly environment; and mobilizing private investment. (Source: A World Bank Group Flagship Report) beyond the human toll, Growth in the euro area is projected to face somewhat greater headwinds due to the regions reliance on natural gas and oil imports, but nevertheless the outlook remains only slightly weaker than January forecasts following better than-anticipated data in late 2025 and a solid start to 2026. Growth in advanced economies is expected to edge up to 1.7 percent in 2027 28 as energy prices decline, inflation pressures subside, monetary conditionsease, and uncertainty recedes.

Growth in EMDEs is anticipated to decelerate to 3.6 percent in 2026 0.4 percentage point below January projections.The expected near-term deceleration across EMDEs depends on their degree of exposure to the conflict and its associated disruptions, with growth in those economies directly affected by hostilities tumbling from 3.9 percent in 2025 to close to zero in 2026. Over 2027 28, lower energy prices, renewed monetary easing, and a transformative recovery in trade are envisaged to underpin a broad-based pickup in activity, with growth rebounding to 4.2 percent over 2027 28. The outlook for Low- Income Countries (LICs) has also deteriorated notably, with the conflict amplifying pre-existing vulnerabilities, including food insecurity, elevated inflation, constrained fiscal space, and weak policy buffers. In addition, the recent Ebola outbreak may weigh on activity in some large LIC economies.

In per capita terms, growth in EMDEs in 2026 is projected to slow to its weakest pace since the pandemic, with the conflict and lingering disruptions impactingEMDEs to varying degrees. In EMDEs excluding China and India, subdued per capita income growth is expected to lead to nearly a decade of lost income convergence with advanced economies by 2028. Weaker growth prospects, combined with constrained fiscal space and declining official development assistance (ODA), are stripping away critical buffers for the most vulnerable countries, widening existing development gaps and exacerbating food insecurity and poverty, especially in LICs and economies in fragile and conflict-affected situations (FCS). ation, and data center infrastructure. The average price electrific

Global trade

Following the U.S. Supreme Court ruling striking down the use of tariffs on international economic emergency grounds, the U.S. administration introduced a temporary 10 percent tariff surcharge under a different law, set to expire in late July. Together with sector- and country-specific measures, the U.S. rate has declined slightly, to about 12 percent from about 14 percent earlier this year. While trade policy uncertainty remains elevated, several initiatives are expected to support trade growth and diversification. They include recent free tradeagreements nonetheless between the European Union and Mercosur, India, and Australia respectively, and between the United Kingdom and India. They also include unilateral market access initiatives such as Chinas zero-tariff treatment for African countries and the U.S. reauthorization of the African Growth and Opportunity Act.

Commodity markets

The near halt of shipping through the Strait of Hormuz has triggered enormous disruptions in commodity markets, particularly crude oil, LNG, and fertilizers since early March. Amid large price reflecting geopolitical shifts, spot Brent crude, European natural gas, and urea prices in April averaged 80, 31, and 106 percent above their January levels, respectively. The outlook remains highly sensitive to the duration and intensity of these disruptions. The baseline assumes the most acute phase of disruptions ends July, with shipping volumes through the Strait of Hormuz returning near pre-conflict

More prolonged impediments to shipping would imply materially higher prices for key commodities than assumed in the baseline, with broader spillovers to inflation and economic particular, market stress and disorderly price surges could emerge if crude oil and oil products inventories are drawn down to critical levels. Any reversal of recent increases in oil exports from producers outside the Gulf region could accelerate this process. Moreover, further damage to oil and gas infrastructureinthe Middle East could keep energy prices higher in the medium term, even when acute disruptions abate.

Against this backdrop, average commodity prices are projected to rise by about 22 percent in 2026, a sharp reversal from the 7 percent decline anticipated in January, driven mainly by the surge in energy prices. Brent crude oil is forecast to average $94/bbl in 2026, $34 higher than projected in January, reflecting unprecedentedly large oil supply disruptions that are expected to ease gradually in the second half of this year. Average natural gas prices are also projected to rise in 2026, by a sharp 30 percent in Europe, but only 2 percent in the United States. These forecasts reflect markedly tighter global LNG availability that raises wholesale natural gas prices in East Asia, Europe, and other gas-importing regions.

Price pressures extend beyond energy. Industrial metal prices are expected to increase by about 18 percent in 2026 on tighter supply conditionsand firm demand, including from the energy transition,

of precious metals could be about 42 percent higher than last year, supported by strong safe-haven demand. Fertilizer and food markets are also affected. Pre-conflict, economies in the Gulf region supplied about 20 percent of urea and diammonium phosphate (DAP) fertilizer exports, as well as extensiveinputsforfertilizer er prices are therefore expected to fertiliz production.Average effective tariff climb by 38 percent this year. Even so, food commodity prices are expected to firm by only 3 percent in the baseline, owing to ample recent grain production globally.

Theconflict significant food security risks. It directly threatens food security in the Middle East by disrupting food imports in the Gulf region, raising domestic food inflation as supplies are rerouted through longer and more costly overland channels. More broadly, a longer than-anticipated trough in Middle East exports would further lift agricultural input costs and raise the risk of reduced fertilizer use, weaker crop yields, and higher food prices. Under adverse scenarios, up to an additional 70 million people could face acute hunger and food insecurity over the forecast period (World Food Security Outlook 2026). Beyond developments in the Middle East, the possible emergence of El Nino weather conditions could push food prices above current expectations.

InflationTrendsandMonetaryPolicy

FY 2025 26 witnessed continued progress in the global disinflation process, with inflationary pressures moderating across most major economies. Central banks in advanced economies adopted a measured approach towards monetary easing as inflation gradually converged towards target levels while maintaining vigilance over persistent core inflation. In India, inflation remained largely within the Reserve Bank of Indias tolerance band, supported by prudent monetary policy, resilient domestic demand and improving supply conditions. However, fluctuations in food prices, weather-related disruptions and uncertainties in global commodity markets continuedto present near-term inflationary challenges.

India continued to reinforce its position as one of the worlds fastest-growing major economies during FY 2025 26, demonstrating remarkable resilience amid an evolving global economic landscape marked by geopolitical uncertainties, supply chain realignments and moderating inflationary pressures. Supported by robust domestic demand, sustained public infrastructure investments and a resilient services sector, the economy maintained strong growth momentum while preserving macroeconomic stability.

Private consumption remained a activity, supported by improving urban demand, healthy labour market conditions and sustained government initiatives at enhancing rural incomes and infrastructure development. Continued capital expenditure by both the Government and the private sector, coupled with increasing manufacturing activity under initiatives such as Make in India and the Production Incentive (PLI) Scheme, further strengthened Indias investment climate and industrial competitiveness.

The Reserve Bank of India (RBI) continued to pursue a calibrated monetary policy approach, balancing the twin objectives of price stability and sustainable economic growth. Inflationary pressures moderated during the year, aided by prudent monetary management and easing supply-side constraints, although periodic fluctuations in food and global commodity prices remained areas of close monitoring. Indias banking and financial well-capitalised, with healthy credit growth supportinginvestment and consumption across key sectors of the economy.

India also investment destination, supported by fundamentals, ongoing structural reforms, rapid digital transformation and sustained improvements in the ease of doing business. Public investments in physical and digital infrastructure, coupled with policy measures promoting manufacturing, exports and innovation, further enhanced the countrys long-term growth prospects.

Looking ahead, Indias economic outlook remains favourable, underpinned by strong domestic consumption, increasing private investments, expanding manufacturing capabilities, infrastructure development and a supportive policy framework. While external risks arising from geopolitical developments, global trade dynamics and commodity price volatility warrant continued vigilance, the countrys resilient economic fundamentals are expected to support sustainable long-term growth. (Source: Economic Survey 2025 26)

Growth Drivers and Sectoral Performance , trends in sectors electronics, consumer goods Economic growth during FY 2025 26 was broad-based, with contributions from all major sectors:

• Private Consumption remained a key driver, supported by improving rural demand, stable employment conditions, and easing inflation.

• Government Capital Expenditure continued to play a catalytic role, particularly - roads, railways, logistics, and digital connectivity.

• Services Sector maintained strong growth momentum, led by financial services, IT, trade, and hospitality, and continued be the primary contributor to GDP.

• Manufacturing and Constructionsectors witnessed recovery, supported by policyinitiatives such as Production Linked Incentive (PLI) schemes and improved capacity utilization. key driver of economic

• Agriculture Sector provided stability to rural demand, aided by normal monsoon conditions and supportive government policies.

How much will AI affect global growth?

Artificial intelligence (AI) has emerged as a potential Linked for economic growth at a time when experiencing a structural slowdown. In the near term, AI is likely to boost growth mainly through higher investment, especially in advanced economies. Over the medium term, however, its most important contribution would come from faster productivity growth. Yet estimates of the productivity impact of AI vary widely, from modest gains to transformative effects. Illustrative scenarios suggest that these differences could lead to markedly different growth paths. Under optimistic assumptions about AIs productivity effects, growth in the 2030s could exceed the average sectorremained recorded in the 2000s, making the decade the strongest period of global growth since the 1970s. Under less optimistic assumptions, however, the gains preferredglobal would be stable considerably smaller. The growth benefits of AI are also likely to macroeconomic vary across countries, depending on digital infrastructure, human capital, regulatory frameworks, and the speed and breadth of adoption. They may also play out differently in advanced economies and emerging market and developing economies. Ultimately, the extent to which AI reshapes global growth will depend on the scale and persistence of the productivityimprovements it generates and on whether countries can build the conditions needed to capture them.

CHEMICAL INDUSTRY

Global Chemical Industry

The global chemical industry witnessed a gradual recovery during FY 2025 26, supported by improving macroeconomic conditions, easing inflationary pressures, stabilising supply chains and a gradual recovery in industrial production. As the chemical industry iscloselylinkedtoglobalmanufacturing such as automotive, construction, and infrastructure continuedinfluenceoverall demand during the year.

According to the International Monetary Fund (IMF), the global economy is projected to grow by approximately 3.1% in 2026, reflecting a stable but uneven

While moderating inflation and easing monetary conditions supported business confidence, geopolitical tensions, trade conomy uncertainties and volatile energy prices continued challenges to global industrial activity.

Demand growth remained regionally diverse. Asia, led by China, als, textiles, automobiles, continued to account for the largest share of production and consumption, supported by its extensive manufacturing base, infrastructure investments and expanding domestic demand. Other emerging economies, particularly India and Southeast Asia, also continued to witness healthy growth, driven by rapid industrialisation, investments across manufacturing sectors.

In contrast, North America and Europe experienced relatively subdued growth during the year. High energy costs, cautious industrial production, weak activityand slower manufacturing economic expansion continued to impact chemical demand across several end-use industries. Nevertheless, the gradual easing of inflationary pressures and improving supply chain conditions provided some support to market recovery.

The global chemical industry also continued shifts towards specialty chemicals, sustainable products and high-value-added applications.Growing customer preference for environmentally responsible products, increasing regulatory focus on sustainability and rising investments in research and innovation accelerated the adoption of green chemistry, circular economy practices and

Despite near-term macroeconomic uncertainties, the long-term outlook for the global chemical industry remains positive. Increasing demand from high-growth sectors such as renewable energy, electric vehicles, electronics, healthcare, packaging and infrastructure development, coupled with continued in innovation and sustainability, is expected to support the industrys long-term growth trajectory.

Outlook & Strategic Implications

The global chemical industry is expected to remain in a moderate growth phase during FY 2026 27 and beyond, with gradual improvement in demand conditions challenges. Growth is projected to remain in the range of 2.5% 3.5% annually, driven primarily by emerging markets in Asia, while developed economies are likely to experience subdued performance.

The industry is undergoing a structural transformation characterised by capacity and increasing consolidation, with long-term growth expected to remain stable but below historical averages. Asia, particularly China and emerging economies, will continue to dominate incremental global demand.

Indias Chemical Industry

IndustryPositioninthe to pose The Indian chemical and petrochemical industry remains a core pillar of manufacturing and exports, with strong linkages and across agriculture, global chemical construction. The rise in demand from end-user industries such as food processing, personal care and home care is driving the development of different segments in Indias specialty chemicals market. Now India is the sixth largest producer of chemicals in the world and third in Asia, contributing urbanisation and increasing to a McKinsey report, Chemicals and petrochemicals demand in India is expected to nearly triple and reach US$ 1 trillion by 2040. Exports of Chemicals and allied Products reached US$ 9,194 million during FY26.

The Indian chemical industry is valued at approximately USD 250 300 billion in FY 2025 26, supported by strong domestic demand and export-led growth. The industry is expected to grow at a moderate rate of 4% 6%, with specialty chemicals driving higher growth momentum. India holds a strong position in exports and imports of chemicals at a global level and ranks 14th in exports to witness structural als) pharmaceutic and8thinimportsatthegloballevel(excluding Production has increased steadily over the last decade, a CAGR of approximately 2.8% between FY16 and FY25.

In FY 2025 26 the Indian chemical industry continues to demonstrate strong regional concentration, with Gujarat accounting for approximately 40 45% of total production and nearly half of chemical exports. Maharashtra remains the second-largest hub, followed by Tamil Nadu, West Bengal, and Telangana.

Growth in the sector is increasingly driven by specialty chemicals and export-oriented manufacturing, with southern states such as Tamil Nadu and Telangana emerging as high-growth regions.investments While Gujarat continues to dominate in scale and infrastructure, emerging clusters are contributing base.

As part of the Union Budget 2025-26 the government allocated Rs. 1,61,965 crore (US$ 18.7 billion) to the Ministry of Chemicals and Fertilizers. als, personal care and industrial solvents. The global terpene

Outlook for FY 2026-27 and Beyond

Indias chemical industry is expected to remain one of the fastest-growing chemical markets globally, supported by robust domestic demand, favourable government policies, expanding into globalmanufacturing capabilities supply chains. Industry estimates indicate that the sector is poised to grow at a CAGR of 8–9%, with the market size expected to increase from US$155–165 billion to approximately US$250-300 billion by 2030.

Growth Drivers vs. Key Challenges

Growth Drivers	Key Challenges
Strong Domestic Demand Volatility in Crude Oil & driven by rising consumption and industrialisation	Feedstock Prices affecting input costs
Increasing Export Competitiveness supported by the China+1 strategy	Global Demand Uncertainty in chemicals and petrochemicals
Supportive Government Policies including PLI, Make in India and infrastructure investments	Stringent Environmental & Regulatory Compliance requirements
Growing Demand from End-user Industries such as pharmaceuticals, FMCG, automotive, construction and electronics	Global Petrochemical Overcapacity, resulting in pricing pressure and intense competition

INDUSTRY OVERVIEW

Pine Chemicals

Pine chemicals are bio-based specialty chemicals derived from pine trees through products such as gum rosin, gum turpentine, tall oil fatty acids, and terpene derivatives. These products find applications across adhesives, coatings, inks, rubber processing, care industries. fragrances,flavours,

The global pine chemicals market has demonstrated steady growth, driven by increasing demand for renewable and sustainable raw materials as industries seek alternatives to petroleum-based chemicals. According to various industry estimates the global pine chemicals market is valued at approximately USD 6.7 billion in 2026 and is projected to grow at a CAGR of 4.0% 4.5% through 2034.

Asia-Pacific continues to be one of the fastest-growing regions, led by China and India, supported by expanding manufacturing activities, and growing consumption of bio-based chemicals.

Terpenes

Terpenes constitute a key category of naturally occurring hydrocarbons extracted primarily from turpentine oil and other botanical sources. These compounds serve as essential ingredients infragrances,flavours, cleaning formulations market is witnessing steady growth driven by rising demand for natural ingredients, increasing application in wellness and healthcare products, and the growing preference for sustainable chemical solutions.

The global terpenes market was valued at approximately USD 790 million in 2025 and estimated to reach approximately USD 800 million in 2026 and is projected to grow at a CAGR of around 6.5% through 2035.

Synthetic Resin

Synthetic resins constitute a critical segment of the chemical industry and serve as key raw materials for adhesives, coatings, paints, printing inks, laminates, packaging materials, construction products and a wide range of industrial applications. The industry continues to benefit from growing demand across infrastructure, construction,automotive, packaging and manufacturing sectors, particularly in emerging economies where urbanization and industrial development remain strong growth drivers. While fluctuations in crude oil prices and petrochemical feedstock availability continue to influenceinput costs and margin dynamics, the industry is increasingly witnessing a shift towards high-performance, specialty and environmentally compliant resin solutions driven by evolving customer requirements and regulatory standards. In India, sustained investments in infrastructure, housing, industrial manufacturing and packaging, coupled with government initiatives aimed at strengthening domestic manufacturing capabilities, are expected to support long-term demand growth.

The global synthetic resins market was valued at approximately USD 541.8 billion in 2025 and is estimated to reach USD 568.5 billion in 2026, supported by growing demand from packaging, construction, transportation, electrical & applications.The market is projected to grow at a CAGR of 4.92% through 2033, driven by increasing adoption of high-performance polymer materials and sustainable resin technologies.

Aroma Chemicals

The global aroma chemicals market continues to demonstrate steady growth. Asia-Pacific remains the largest and fastest-growing regional market, supported by rising disposable incomes, rapid urbanization, and expanding consumption of personal care household products. The market reached approximately USD 7.7 billion in 2025 and forecast it to reach USD 12.0 Billion by 2034, implying a CAGR of approximately 4.9%.

Key Developments in the Global Aroma Chemicals Market

Gr owing demand for natural and bio-based aroma across fragrance, personal care, and food applications.

Incr eased adoption production processes for sustainable aroma ingredients.

Rising consumer preference for clean-label, wellness-oriented products.

Str ong growth in premium fragrancesandfineperfumery products worldwide.

Expansion of aroma chemical applications in personal care, home care, cosmetics, and food & beverage industries.

Incr easing investments in green chemistry and responsible manufacturing.

De velopment of nature-identical aroma molecules to sustainability, performance, and cost

Gr owing use of AI and digital technologies in fragrance and aroma molecule discovery.

India Aroma Chemicals Market FY 2025 26

The India Aroma Chemicals Market is demonstrating vour companies poised to significantly expand from its valuation $291.3 million in 2025. Projections indicate a substantial increase at a Compound Annual Growth Rate (CAGR) of 5.54% through 2034, reaching an estimated market size of approximately $472.6 million. This expansion is primarily propelled by escalating demand across key end-use industries, particularly the burgeoning food and beverage sector and the sophisticated fine fragrances segment. sustainable The India Aroma Chemicals Market is significantly shaped by the dominance of the terpenes segment, which is projected to maintain its leading positionthroughout the forecast period. Terpenes, a vast and diverse class of organic compounds naturally produced by plants, are celebrated for their distinctive aromas and making them indispensable across a multitude of applications.

Key Market Drivers

1. Increasing Usage in the Food and Beverage Industry:

The rapid expansion of Indias processed food and sector is a primary demand driver. Indias burgeoning incomes and population, changing dietary preferences, has led to a surge in demand for convenience foods, packaged snacks, and diverse beverages. Aroma chemicals are indispensable in impartingcharacteristic flavors, enhancing palatability, and ensuring product consistency in these categories. This sectors expansion, estimated to grow at an average annual rate of over8%, directly translates to higher consumption of aroma chemicals.

2. Growing Demand for fine Fragrances:

Urbaniz ation, increasing fashion consciousness, and the rising penetrationof international brands have fueled the demand for fine fragrances across India. Consumers in metropolitan and Tier 1 cities are increasingly opting for premium perfumes and personal grooming products. This trend has profoundly impacted the Fine Fragrances Market, where aroma chemicals . formthecoreofcomplexolfactorycompositions

Market Restraints of biotechnology and fermentation-based

1. Petrochemical feedstock Crude-linked and benzene and xylene prices expose synthetic aroma compound margins to input cost swings.

2. Western corridor supply concentration: Over 60% of domestic production capacity clusters across Mumbai, Vadodara, and Pune, creating geographic vulnerability.

3. CDSCO documentation barriers: aroma chemical registration dossiers that delay market entry by 18-24 months.

Key Developments & Milestones in the Indian Aroma Chemicals Market

1. The Indian aroma chemicals market reached approximately $291.3 million in 2025. their 2. Global fragranceand robust growth, investments in India to capitalize on rising domestic of demand.

3. Manuf acturers are increasingly focused on renewable and nature-identical aroma ingredients. At the 2025 FAFAI International aroma chemical solutions ISCCPLUS-based on renewable feedstocks.

4. Indian manufacturers of terpene derivatives, camphor products and aroma chemicals reported improved revenues due to stronger domestic demand.

5. Ne w BIS standards for incense sticks introduced restrictions on certain chemicals, increasing emphasis on safer formulations and compliance.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

The key operational segment of the Company isChemical manufacturing.

COMPANY OVERVIEW

Mangalam Organics Limited ("MOL" or "the Company") is one of Indias leading manufacturers of pine-based chemicals. The Company produces terpenes derived from pine chemicals, which serve as key raw materials for the manufacture of various value-added products, including Camphor, Isobornyl Acetate, Isoborneol, Dipentene and Sodium Acetate. In addition, MOL manufactures Synthetic Resins, operating under a single reportable segment, namely Chemicals.

The Company is engaged in the manufacture and sale of Camphor, its by-products and a wide range of Synthetic Resins in both domestic and international markets. A key strength of MOLs pine chemical portfolio lies in its natural origin, as these products are derived from renewable resources and are free from the adverse effects generally associated with synthetic alternatives. Furthermore, the demand and market performance of the Companys pine chemical products are largely independent of crude oil prices and are therefore less exposed to fluctuations in the global petroleum market.

Strategic Positioning ocus.

V alue-added manufacturing capabilities a dependable raw material sourcing statements of MBPL andnetwork, enabling consistent product quality, supply reliability andoperational statements. The excellence.

Dis tinct competitive advantage over synthetic manufacturers owing to its and modern trade channels,natural feedstock base, reduced dependence on crude oil price fluctuations, environmentally responsible manufacturing practices

Expanding global presence with exports across key international markets, including the United States, Europe, Asia, Africa and the Middle East. retail camphor Str engthening its position segment through wholly owned subsidiary, Mangalam Brands Private Limited.

Segment-wise Performance

The Company primarily operates in the B2B segment, offering a diversified portfolio of chemicals derived from pine-based sources.

Business
I Segments	Products	Applications
B2B -	Camp	hor Camphor: Religious use,
Terpene	Isoborn Acetate	yl healthcare products, hygiene products
	Isoborneol Dipen	Isobornyl Acetate: Fragrance and flavor tene
	Sodium	Isoborneol: Fragrance and Acetate flavor
		Dipentene: Paints, cleaning and degreasing agents
		Sodium Acetate: Textile and dyes industry, Leather tanning
B2B - Synthetic Resin	T erpene Phenolic Resin Alkyl Phenolic Resin R osin Esters	Adhesives, Tyres, Rubbers, Chewing Gum, Printing Ink

Retail Business Note:

Effective FY 2022 23, the Company transferred its retail business operations to its wholly owned subsidiary,Mangalam Brands Private Limited (MBPL), with a view to creating a dedicated platform for the consumer products business and enhancing operational

Accordingly, the financial performance of the retail business is supported by reflectedinthe financial part of the Companysconsolidated financial business continues to strengthen the Groups overall presence through chemical an expanding portfolio of consumer products, wider distribution acrosstraditional a growing footprint on leading e-commerce platforms, thereby contributing and to the long-term growth of the Mangalam Group.

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 ecosystem anddrivenbya robust operational that tightly integrates quality control, warehousing, packing, dispatch, maintenance, and R&D. Continuous investment in technology upgrades andLeanSixSigmapracticesensures enhanced productivity, minimal downtime, and consistent product quality.

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

Futur e expansion is being planned with a transformation,energyoptimization, and capacity scaling to support growing domestic and international demand. al, personal care, home

Product Portfolio

1. TERPENES

The Company manufactures a wide range of high products under this sub-segment. This is the keyrawingredient als, for producing camphor and related products. The Company is focusing on productionefficiency and quality control so that continues to create it can produce internationalquality intermediate products and their derivatives for the fragrance and flavor 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 Companys flagship product and contributes approximately 80% of the Terpenes business revenue. Manufactured from renewable pine-based raw materials, it is witha naturally derived product known for its high purity and clean-burning characteristics, leaving no residue after combustion. Traditionally, camphor has been widely used for religious and spiritual purposes, where its ability to burn completely and equipment,and symbolise purity has made it an integral part of worship and devotional practices across the domestic market. Over the years, however, camphor has evolved from being a commodity product to a value-added specialty product with applications onacross diverse end-use industries.

Be yond its traditional use, camphor finds extensive applicationsinthe wellness, fragrances and industrial sectors. It is widely used in medicated balms, ointments, inhalants, vapour rubs and topical formulations,as well as in personal care products, air fresheners, insect repellents, fragrances and specialty chemical Growing formulations. demand from personal care, home care, packaging, adhesives, paints and avenues for innovation and coatings product development.

With increasing consumer preference for natural, sustainable and plant-based products, naturally derived camphor continues to witness robust demand in both domestic and international markets. The Companys strong capabilities, stringent quality standards and long-standing customer relationships enable it to effectively serve the evolving requirements of industrial as well as consumer markets. Recognising the significant potential in the consumer segment, the Company has also strengthened its presence in the retail market through its wholly owned subsidiary, Mangalam Brands Private Limited, which markets camphor and allied consumer products through general trade, modern trade and leading e-commerce platforms. This strategic initiative has enabled the company to enhance brand visibility, diversify its revenue streams and capitalise on the growing demand for branded consumer products.

The Company continues to expand its capabilities, introduce specialised grades and strengthen its product portfolio to enhance its presence in both domestic al industries. It is primarily used in dyeingpharmaceutic and export markets. Supported by its portfolio of well-established registered brands, the Company remains well positioned to leverage emerging opportunities and sustain long-term growth.

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
	Air Purifiers, Camphor Hand Wash, Camphor Soap Bar, Camphor Hand Sanitizer, Camphor Liquid Vaporiser.

Isobornyl Acetate

Isoborn yl Acetate is a high-value aroma chemical used in the fragrance and flavour industry. Recognised for its pleasant woody and camphoraceous notes, it is widely used in perfumes, personal care products, home care formulations and fine fragrance compositions. The Company continues to engage with leading domestic and internationalcustomers for product approvals and commercialisation. As customer acceptance expands, Isobornyl Acetate is expected to strengthen the Companys specialty chemicals portfolio and contribute to future growth.

Isoborneol

Isoborneol is a versatile terpene derivative extensively used in applications. fragrance,flavour, Its unique aromatic properties make it a preferred ingredient in perfumes, cosmetics, essential oil blends and aromatherapy products. Increasing consumer preference for natural and wellness-oriented products has supported demand across global markets. The Company remains focused on delivering high-quality grades that meet the evolving requirements of customers in both domestic and

Dipentene and rubber compounding. Their excellent Dipen tene is a value-added co-product obtained manufacture of camphor and serves as an important raw material for a variety of industrial applications. It is widely used as a bio-based solvent in paints, coatings, cleaning and degreasing formulations, adhesives, printing inks and specialty chemical products. With increasing emphasis on sustainable alternatives and periodic supply constraints in competing citrus-based solvents continues to witness growing demand in both domestic and international markets.

Sodium Acetate

Sodium Acetate is a versatile chemical with applications across the textile, leather, chemical processing, food and and textile processing, leather tanning, buffer solutions various industrial formulations. The Company supplies Sodium Acetate to domestic customers while also catering to export markets, supported by consistent product quality and reliable supplycapabilities

2. S YNTHETIC RESINS

The Company 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 Camphor segment and is continuingits efforts to enhance margins and build higher volumes in each of them.

T erpene Phenolic Resin

T erpene Phenolic Resin is a high-performance specialty resin widely used as a tackifier in adhesives, tyres, rubber primarily compounds and pressure-excellent adhesion, compatibility and thermal stability make it a preferred choice across industrial applications. With growing demand from the automotive, packaging and construction sectors, the Company is well positioned to capitalise on the increasing adoption of high-performance resin solutions both domestic and international markets.

Alkyl Phenolic Resin

Alkyl Phenolic Resin is primarily used in the manufacture of Neoprene and Chloroprene rubber-based adhesives, catering to applications across and industrial assembly. The Company continuesto focus on product quality enhancement, process optimisation and customer-specific formulations to meet evolving industry requirements. These initiatives are expected to strengthen its presence in both domestic and export markets.

Rosin Esters

R osin Esters are specialty resins extensively used in pressure- . sensitive adhesives, hot-melt adhesives, printing inks, tackifying coatings theproperties and compatibilitywith a wide range of polymers make them suitable for diverse industrial applications. Company continues to enhance product quality and expand its specialty resin portfolio to address growing demand from packaging, hygiene, labelling and other value-added end-use industries, while strengthening its presence in global markets.

FINANCIAL PERFORMANCE

Revenue Performance:

The Company delivered a strong financial performance during FY 2025-26, supported by robust revenue growth, improved operating efficiencies, and favorable input cost dynamics. Revenue from Operations increased by 22.20 % to Rs. 50,085.18 lakh in FY 2025-2026 from Rs. 40,984.75 lakh in the FY 2024-2025, healthy demand across key product segments and improved market penetration.

Expense Analysis:

Operating expenses increased in line with the growth in the Companys business operations during FY 2025 26. Cost of Materials Consumed rose by 18.07% to Rs. 35,387.65 lakh, reflecting higher production and sales volumes. Purchases Stock-in-Trade increased to Rs. 803.89 lakh from Rs. 620.14 Lakh, while Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade amounted to Rs. (3,411.40) lakh compared with Rs. (4,921.55) lakh in the previous year, consistent with production planning and inventory management. Employee Benefits Expense increased by 14.24% to Rs. 3,390.54 lakh, and Other Expenses increased by 15.41% to Rs. 8,703.25 lakh, reflecting the expansion in operational activities and the overall scale of the business.

Profitability Performance:

ProfitBefore Tax (PBT) increased to Rs.1,771.59 lakh in FY 2025-26 from Rs.1,068.27 lakh in FY 2024-ability was driven by higherrevenues, profit 25.Theimprovement Margin improved from 7.56 % in FY 2024-25 better operating leverage and efficient cost management the increase inrawmaterialandfinance table raw material costs during the year.

Net Profit for the year increased by 76.72% to Rs.1,371.33 lakh as compared to Rs.775.98 lakh in the previous financial year, reflectingthe Companys enhanced stronger earnings generation during the year.

Earnings Per Share (EPS):

Earnings Per Share (EPS) increased to Rs. 15.50 from Rs. 8.87, representing a growth of 74.75%, reflecting the Companys improved profitability.

Overall, the Companys performance during FY 2025-26 reflects the successful execution efficiencies, and a sustained focus on enhancing shareholder value. The management remains committed to strengthening operational excellence, expanding market reach, and improving profitability to support long-term sustainable growth.

Details of Significant Changes in Key Financial Ratios

Key Financial Ratios for FY 2025-26 are as under:

Interest Coverage

FY 2025-26	FY 2024-25
1.83 times	1.53 times

The Interest Coverage Ratio improved from 1.53 times in FY 2024 25 to 1.83 times in FY 2025 26, primarily due to improved operating profitability and higher earnings during the year, resulting in enhanced capacity to service finance costs.

Current Ratio

FY 2025-26	FY 2024-25
1.25 times	1.08 times

The Current Ratio improved from 1.08 times in FY 2024-25 to 1.25 times in FY 2025-26, primarily due to improved working capital management and an increase in current assets commensurate with higher business operations, thereby short-term liquidity position.

Debt Equity Ratio

FY 2025-26	FY 2024-25
1.11 times	1.04 times

Increase in Debt Equity Ratio as compared to FY 2024-25 was primarily on account of an increase in borrowings during the year, mainly utilised towards working capital requirements.

Operating Profit Margin (%)

FY 2025-26	FY 2024-25
8.64%	7.56%

The Operating Profit despite to 8.64 % in FY 2025-26, primarily due to better camphor price realisationand costs. Consequently,

Net Profit Margin (%)

FY 2025-26	FY 2024-25
2.65%	1.85%

Improved camphor price realisation and stable raw material costs during the year contributed to the improvement in the ratio.

Return on Net Worth

FY 2025-26	FY 2024-25
	of its growth strategy, improved cost
4.38 %	2.62%

The improvement was primarily attributable to higher profitability during the year.

RISKS AND CONCERNS

The Company operates in an evolving business environment where various risks and uncertainties are an inherent part of business. A structured risk management framework enables the Company to proactively identify and address potential risks while maintaining operational efficiency, regulatory compliance and business continuity. Some of the key risks specified by the Company are:

Raw Material Cost and Supply Risk:

The Companys profitability may be affected by fluctuations the prices and availability of key raw materials, intermediates and chemicals used in the manufacturing process. Any disruption supply or increase in procurement costs could adversely impact operations and margins.

Regulatory and Compliance Risk:

The Company operates in a highly regulated industry and is subject to various environmental, health, safety and chemical handling regulations. Any changes in applicable laws, regulations or compliance requirements may increase operational costs and necessitate additional investments.

Market and Competitive Risk:

The chemical industry remains highly competitive with the presence of domestic and international players. Intense competition, pricing pressure and changing customer preferences may affect the Companys market position and profitability.

Demand Risk:

Demand for camphor and related products is influenced by patterns,consumerfestive consumption demand, industrial applications and overall economic conditions.Any adverse changes in demand may impact sales volumes and revenue.

Foreign Exchange Risk:

The Company may be exposed to fluctuations in foreign currency exchange rates arising from imports, exports and other international transactions, which could affect profitability and cash flows. twork.

Supply Chain and Logistics Risk:

Disruptions in transportation networks, port operations, shipping availability or global supply chains may impact the timely procurement of raw materials and delivery of finished

Operational and Manufacturing

Manufacturing operationsinvolve risks related to equipment breakdown, process disruptions, fire incidents, industrial accidents and unplanned shutdowns, which may affect productionand financial performance. learning, employee development and

Environmental, Health and Safety Risk:

Chemical manufacturing involves handling hazardous substances and requires strict adherence to safety standards. Failure to maintain effective itself to capitalise on emergingsafety systems may result in accidents, regulatory actions and reputational impact.

Geopolitical and Macroeconomic Risk:

Global economic uncertainties, geopolitical developments, inflationary pressures and trade-related restrictionsmay affect input costs, supply chains and overall business performance. in The Company continuously reviews these risks and has established appropriate risk management practices, internal controls and compliance mechanisms to mitigate their potential impact on business operations. The Company fulfils concerning emission, wastewater and waste disposal. Improving workplace safetycontinuedto be top priority at the manufacturing sites.

MANAGEMENT & INDUSTRY OUTLOOK

Management Outlook:

Mangalam Organics Limited enters FY 2026-27 withapositive outlook, supported by improving industry fundamentals, a product portfolio and a strong focus on operational diversified excellence. The Company remains committed to creating sustainable long-term value by strengthening its leadership position in the pine chemicals and camphor industry while expanding its presence acrossdomesticandinternational markets.

The Companys strategic priorities for the year include:

• Enhancing Manufacturing by improving operational efficiencies, optimising capacityutilisation and expanding value-added product offerings.

• Strengthening Product Portfolio through continuous innovation, development of specialty chemicals and introduction of customer-centric solutions across industrial and consumer segments.

• Expanding Domestic and Global Presence by deepening customer relationships, entering new markets and broadening itsdistribution

• Driving Sustainable Growth through environmentally responsible manufacturing practices, utilisationand adherence to evolving regulatory and ESG products. standards.

Risk:

• Operational Excellence by leveraging technology, process improvements and supply chain optimisationto productivity and cost

• People and Governance by fostering a culture of safety, continuous corporate governance.

The Company remains focused on prudent capital allocation, customer-centric innovation and operational resilience, positioning while effectively navigating evolving market conditions.

Opportunities

The Company continues to benefit from favourable long-term industry trends, including:

Gr owing demandfor naturally derived and sustainable pine-based chemicals across pharmaceutical, personal care, home care, fragrance, adhesive and specialty chemical industries.

Incr easing consumer preference bio-based,for environmentally responsible products, creating opportunities for value-added and specialty applications.

Rising demand high-performance resins and terpene derivatives from automotive, packaging, construction and industrial sectors.

Expansion of the Companys consumer products business through its wholly owned subsidiary, Mangalam Brands Private Limited, supported by wider distribution across platforms. traditional

Incr easing export opportunities driven by global supply diversificationand growing acceptance of high-quality Indian specialty chemical manufacturers.

Challenges

The Company operates in a dynamic business environment and continuesto proactively manage the following challenges:

• Volatility in raw material and energy prices, which may impact input costs and operatingmargins.

• Intense global competition, particularly from large international manufacturers with integrated operations and cost advantages.

• Changing environmental, safety and regulatory requirements, necessitating continuousinvestment in compliance, sustainability and process improvements.

• Global economic and geopolitical uncertainties, which may influenceexport demand, logistics and customer spending patterns.

• Foreign exchange fluctuations, which may affect export realisations and the cost of imported inputs.

Despite these risks, the Company remains optimistic long-term growth prospects and is well-equipped to leverage opportunities arising from evolving market trends and industry developments. By focusing on operational capacity utilization, innovation and prudent business strategies, the Company aims to further strengthen its profitability and competitive advantage. Supported by a strong foundation, experienced leadership and a commitment to continuous improvement, the Company is confident of delivering sustainable growth and long-term value creation for all stakeholders.

INTERNAL CONTROLS

Mangalam Organics Limited has a robust internal control framework designed to safeguard assets, ensure operational

compliance with applicable laws and regulations.The control systems are commensurate with the nature and scale of the Companys operations and are continuously strengthened through chain process improvements and enhanced monitoring mechanisms.

The internal audit function is carried out by the in-house Finance and Accounts team, with periodic reviews of key processes and controls. Audit observations are reviewed by the management and the Audit Committee. The Audit Committee, Independent Directors, provides oversight to ensure the adequacy and effectiveness of the internal control environment and recommends improvements wherever necessary.

Human Resources

In an increasingly competitive and technology-driven business environment, Mangalam Organics Limited recognizes Human Capital as one of its most valuable assets and a key enabler of sustainable growth. The Company believes that its success is driven by the dedication, expertise and commitment of its employees across all functions. The Company remains focused on fostering a work culture that promotes collaboration, innovation, accountability and continuous improvement.

The Company continues to invest in employee development through training, skill enhancement and capability-building initiatives aimed at strengthening technical, operational managerial competencies. As of March 31, 2026, the Company employedaboutits 347 full-time personnel, across various functions. Our people-centric approach ensures that we are future-ready, agile, and resilient. excellence,efficient

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.