Mayank Cattle Food Ltd Management Discussions

ECONOMIC OVERVIEW GLOBAL ECONOMY

Once again, the global economy is threatened with being thrown off course this time by the outbreak of war in the Middle East at the end of February 2026. Over the past year, headwinds from higher trade barriers and elevated uncertainty have been offset by tailwinds from technology-related investment; accommodative financial conditions, including a weaker US dollar; and fiscal and monetary policy support. The Middle East conflict presents a significant counterforce to these tailwinds through its impact on commodity markets, inflation expectations, and financial conditions.

Given the difficulty of underpinning in real time a consistent set of assumptions for projections, this World Economic Outlook (WEO) report presents a "reference forecast" in lieu of the traditional baseline predicated on the assumption that the war will have limited duration, intensity, and scope, such that the disruptions will fade by mid-2026, consistent with commodity futures prices as of March 10. However, given the fluidity of the situation, the report complements the global reference forecast with scenarios in which the conflict lasts longer or expands. The likelihood of these scenarios materializing rises progressively as hostilities and associated disruptions continue.

Under the reference forecast, global growth is projected to be 3.1 percent in 2026 and 3.2 percent in 2027, slower than its recent pace of about 3.4 percent in 2024 25, and to settle at about that rate in the medium term, slower than its historical (2000 19) average of 3.7 percent. The forecast for 2026 is revised downward by 0.2 percentage point and that for 2027 is unchanged, compared with those in the January 2026 WEO Update. Global headline inflation is expected to increase to 4.4 percent in 2026 and decline to 3.7 percent in 2027, marking upward revisions for both years.

Absent the war, global growth would have been revised upward. Indeed, forecasts based on pre conflict assumptions would have shown a slight upward revision of 2026 growth relative to that forecasted in the January WEO Update, by 0.1 percentage point to 3.4 percent. Hence, the downward revision for 2026 Largely reflects the disruptions from the conflict in the Middle East, partly offset by carryover from recent strong data and reduced tariff rates.

Crucially, there is a high degree of cross-country dispersion in the reference forecast. While the growth and inflation revisions seem relatively modest at the global level, the toll on the conflict region and more vulnerable economies elsewhere in particular, commodity-importing emerging market and developing economies with preexisting fragilities is much more pronounced. The downward revision to growth in emerging market and developing economies is 0.3 percentage point for 2026, relative to that in the January WEO Update, while the forecast is broadly unchanged for advanced economies.

Under an adverse scenario with larger and more persistent increases in energy prices, global growth would slow further to 2.5 percent in 2026, and inflation would reach 5.4 percent. Under a more severe scenario in which there is more damage to energy infrastructure in the conflict region, the impact would be even larger: Global growth would be cut to only about 2 percent in 2026, while headline inflation would be just above 6 percent by 2027. The impact on emerging market and developing economies would be almost twice that on advanced economies.

GLOBAL GROWTH FORECAST: FRAGILE WITH LARGE DISPERSION

Before the outbreak of the conflict, the bottom-up forecasts would have indicated a stable growth path ("Pre conflict WEO forecast" in Figure 1.8). Global growth would have been 3.4 percent in 2026 and 3.2 percent in 2027, an upward revision of 0.1 percentage point for 2026 and unchanged for 2027 compared with the forecast in the January 2026 WEO Update.

Under the assumption in the reference forecast that the war turns out to be relatively short-lived, global growth is expected to slow down modestly. At 3.1 percent for 2026 and 3.2 percent for 2027, the forecasts mark a deceleration from the estimated 3.4 percent achieved in 2025 (Table 1.1). At market exchange rates, world output is projected to grow by 2.6 percent in both 2026 and 2027. The relatively modest downward revision to global growth in the reference forecast relative to the January 2026 WEO Update owes to continued tailwinds partially offsetting the negative shocks from the conflict, including lower tariffs, preexisting policy support, and carryover from stronger-than-expected outturns at the end of 2025 and the first quarter of 2026 in some cases. Compared with the pre conflict WEO forecasts, growth in the near term is revised downward by 0.2 percentage point. This masks significant variation across countries, with lower-income commodity-importing economies being hit particularly hard through higher energy and food prices as well as foreign exchange depreciation (Figure 1.9). Cumulative growth over 2026 27 is revised downward by 0.5 percentage point for low-income net energy-importing economies relative to the January 2026 WEO Update, compared with a downward revision of 0.2 percentage point in energy-importing advanced economies and positive or neutral revisions for net energy-exporting economies.

Should the conflict become more protracted than assumed in the reference forecast or the resumption of production and transport activities take longer than assumed because of possible scarring from closing of or damage to energy infrastructure, the impact on growth would be larger. To illustrate the potential range of magnitudes, the report considers two top-down model-based downside scenarios: an adverse one and a severe one.

In the adverse scenario,

(1) Oil prices are assumed to increase by 80 percent starting in the second quarter of 2026 relative to the January 2026 WEO Update baseline, before falling back to about 20 percent above baseline in 2027, with the increase dissipating in 2028 (corresponding to an average petroleum spot price index of about $100 per barrel in 2026 and about $75 in 2027). Gas prices increase for Europe and Asia by 160 percent in the second quarter relative to baseline, before also mostly unwinding in 2027, and food commodity prices increase by 2.5 percent.

(2) One-year-ahead inflation expectations increase by as much as 50 basis points by 2027 in advanced economies and as much as 90 basis points in emerging markets excluding China. Inflation expectations are unchanged in China, as current low inflation makes this less of a risk than for other countries.

(3) A risk-off episode increases corporate premiums in advanced economies and China by 50 basis points, while emerging markets excluding China experience a 100 basis point increase as well as a 50basis point increase in sovereign spreads. The tightening in financial conditions fades in 2027. Given the large impact on inflation expectations, the monetary policy response assigns less weight to output stabilization than usually assumed.

In the severe scenario,

(1) The shock to commodity prices is more severe and persistent, with oil prices increasing by 100 percent starting in the second quarter of 2026, relative to the January 2026 WEO Update baseline, but also staying at that level in 2027, before dissipating in 2028 (corresponding to an average petroleum spot price index of about $110 per barrel in 2026 and about $125 in 2027). Gas prices for Europe and Asia increase by 200 percent over the same period, and food commodity prices increase by 5 percent in 2026 and 10 percent in 2027.

(2) One-year-ahead inflation expectations ratchet up by as much as 100 basis points in advanced economies by 2027 and by as much as 130 basis points in emerging markets excluding China, also by 2027.

(3) A significant risk-off episode pushes up corporate premiums in advanced economies and in China by 100 basis points in 2026, and they stay at that level in 2027, while emerging markets excluding China experience a widening in sovereign spreads of 100 basis points over the same period, along with an increase in corporate spreads of 200 basis points. As in the adverse scenario, the monetary policy response is geared toward containing inflationary pressures rather than stabilizing output

WORLD TRADE OUTLOOK AND GLOBAL IMBALANCES

World trade volume growth is expected to decline from 5.1 percent in 2025 to 2.8 percent in 2026 and increase to 3.8 percent in 2027. These dynamics reflect front-loading early on and the impact of tariffs mitigated by adjustments in trade linkages and production chains as time goes by. Exports of both goods and services are projected to decline in percent of world GDP over the forecast horizon, with the decline in services trade being much less pronounced. This reflects the stronger underlying trend growth and greater resilience to rising risks in services trade compared with that in goods trade.

Over the medium term, global imbalances are expected to decline only modestly.

Expansionary fiscal packages in some economies with current account surpluses are expected to contribute to this cyclical decline (Figure 1.11).

Countering this is a technology-driven business investment surge, which is expected to continue to attract capital flows to the United States even as investment in technology moderates.

Stronger productivity growth in the United

States could enhance US competitiveness in technology-related services and improve the countrys trade balance. But positive wealth effects that boost domestic demand, together with sustained capital inflows driven by higher returns, would dominate and keep the US current account deficit wider than that observed during the decade preceding the COVID-19 pandemic. Sustained large fiscal deficits in the United States and Chinas continued reliance on export led growth and limited rebalancing to domestic consumption contribute to external imbalances in these two countries.

INDIAN ECONOMY

Even as the global economy navigates uncertainty, India continues to chart a strong growth path, as reflected in the First Advance Estimates (FAE) for FY26 released by the Ministry of Statistics and Programme Implementation (MoSPI). These estimates place the real GDP growth rate at 7.4 per cent and the GVA growth rate at 7.3 percent, surpassing earlier projections by various agencies and our own estimates in the Economic Survey of 2024-25, and reaffirming Indias status as the fastest-growing major economy for the fourth consecutive year. On the demand side, domestic demand continues to anchor growth, supported by a strengthening momentum in capital formation. On the supply side, manufacturing activity has gained traction, and services continue to drive overall expansion, led by steady performance in trade, transport, and financial and professional services. The following sub-section examines the sectoral composition and drivers of growth in H1 and the implied growth in H2 of FY26.

DEMAND SIDE: DOMESTIC DRIVERS ANCHOR GDP GROWTH IN FY26

Domestic demand continues to underpin economic growth in FY26. According to the FAE, the share of final private consumption expenditure (PFCE) in GDP rose to 61.5 per cent in FY26, the highest level since FY12. This is corroborated by the strong performance during the first half of the year, with PFCE growing by 7.5 per cent in H1 of FY26, and its share in GDP rising to 61.4 per cent. This is the fastest growth rate since the first half of FY23 and remains higher than the pre-COVID trend of 6.9 percent10 (Chart I.7). This strength in consumption reflects a supportive macroeconomic environment, characterised by low inflation, stable employment conditions, and rising real purchasing power. Moreover, steady rural consumption, bolstered by strong agricultural performance, and the gradual improvement in urban consumption, aided by the rationalisation of direct and indirect taxes, reaffirm that the momentum in Consumption demand is broad-based.

It may be noted that implicit H2 estimates derived from the FAE indicate a slight moderation in consumption growth. FAE, however, are based on an extrapolation of FY25 consumption levels using data available up to November and are therefore subject to revision as additional information becomes available. Subsequent estimates, incorporating full-year data, will provide a more complete assessment of private consumption performance during FY26, including the impact of recent tax reforms. Currently, the strong consumption growth observed in H1, along with supportive high frequency indicators during Q3 of FY26, suggests that private consumption is likely to remain resilient throughout the year.

The key high-frequency indicators for the third quarter of FY26, including automobile and tractor sales, as well as air passenger traffic, signal the continuation of the robust demand conditions. Furthermore, in the November 2025 round of the NABARD Rural Economic Conditions and Sentiments Survey11 79.2 per cent of rural households reported increased consumption during the last year, with the share of monthly income spent on consumption rising to about 67 per cent, the highest since the surveys inception. This buoyancy in consumption demand can be attributed to the positive impact of GST rate rationalisation and softer inflation, improving the real purchasing power of rural non-farm income

(Source: https://www.indiabudget.gov.in/economicsurvey/)

INDUSTRY OVERVIEW

GLOBAL ANIMAL FEED INDUSTRY

The global animal feed market size was estimated at USD 656.11 billion in 2025 and is anticipated to reach USD 921.33 billion by 2033, growing at a CAGR of 4.3% from 2026 to 2033. This growth is attributable to the increasing commercial livestock production owing to the rising demand for animal-derived protein such as milk.

Key Market Trends & Insights

Asia Pacific dominated the animal feed market with the largest revenue share of 38.1% in 2025.

By application, feed enzymes segment is expected to grow at the fastest CAGR of 5.3% from 2026 to 2033 in terms of revenue.

Market Size & Forecast

2025 Market Size: USD 656.11 Billion

2033 Projected Market Size: USD 921.33 Billion

CAGR (2026-2033): 4.3%

Asia Pacific: Largest market in 2025

Moreover, the rising health awareness among people is driving the demand for poultry, cattle, swine, and aqua, which in turn is stimulating the product market growth. The animal feed market comprises various feed types, including compound feeds, concentrates, and premixes, formulated to address the specific nutritional needs of different animal species and growth stages. Manufacturers utilize a broad range of raw materials such as grains, oilseeds, protein meals, vitamins, and minerals to ensure balanced nutrition and optimal animal performance.

The dairy sector is expected to witness strong growth in the coming years, supported by rising consumption of dairy products owing to their nutritional benefits and wide range of applications. Growing demand for products such as milk, butter, cheese, yogurt, and cream has led to an expansion in cattle farming across multiple regions, positioning dairy cattle as a key driver of feed demand during the forecast period.

For instance, in September 2023, according to the Indias national cattle herd growing to 307.6 million head, up by some 135 thousand head from the U.S. Department of Agriculture (USDA) official 2023 estimate of 307.5 million head. Post attributes the slight increase in cattle herd numbers to the calf crop growing in 2024 to 70.4 million head, up by 300 thousand head compared to the USDA official 2023 estimate of 70.1 million head. The regulations set by different regions for product manufacturing along with the fluctuating prices of raw materials such as soybean and corn may hinder the growth of the product market

(Source: https://www.grandviewresearch.com/industry-analysis/animal-feed-market-report)

INDIAN ANIMAL FEED INDUSTRY

The market is primarily driven by escalating demand for animal-based protein products as dietary patterns shift toward dairy consumption. Rising livestock populations, favourable government schemes supporting feed manufacturing infrastructure, and increasing farmer awareness about scientifically formulated nutrition solutions are propelling commercial feed adoption across Indias diverse agricultural landscape. Moreover, the growing cold chain facilities and enhanced distribution networks are facilitating market penetration beyond traditional agricultural regions, thereby expanding the Indian animal feed market share.

MARKET OUTLOOK

The Indian animal feed market is positioned for sustained expansion driven by structural shifts in agricultural practices and consumption patterns. Government infrastructure investments, demonstrate policy commitment toward modernizing livestock nutrition infrastructure. Export-oriented aquaculture sectors are creating demand for specialized high-value feed formulations meeting international quality standards. The market generated a revenue of INR 1,186.30 Billion in 2025 and is projected to reach a revenue of INR 2,112.96 Billion by 2034, growing at a compound annual growth rate of 6.6% from 2026-2034. Market consolidation through strategic acquisitions and capacity expansions indicates industry maturation as established players leverage economies of scale and integrated supply chains.

OPPORTUNITIES

A. Growing Demand for Dairy Products: As the demand for dairy products increases, there is a corresponding rise in the need for high-quality cattle feed, presenting a significant market opportunity.

B. Government Support and Subsidies: Various government initiatives and subsidies aimed at improving agricultural productivity and supporting the dairy industry can provide financial and operational benefits.

C. Innovations in Animal Nutrition: Advancements in animal nutrition and feed technology can help the company develop superior products, improving cattle health and milk yield, thereby attracting more customers.

D. Expanding into New Markets: Expanding operations into emerging markets where dairy farming is growing can open new revenue streams.

E. Sustainability and Organic Products: With a growing consumer preference for organic and sustainable products, there is an opportunity to develop and market organic cattle feed.

F. Strategic Partnerships: Forming alliances with dairy cooperatives, veterinary services, and research institutions can enhance product offerings and market reach.

G. E-commerce and Digital Marketing: Leveraging e-commerce platforms and digital marketing strategies can help in reaching a broader customer base and improving sales.

THREATS

A. Market Competition: Intense competition from established players and new entrants in the cattle feed market can impact market share and profitability.

B. Fluctuating Raw Material Prices: Volatility in the prices of raw materials used in cattle feed production can affect the cost structure and profit margins.

C. Regulatory Challenges: Changes in government policies, regulations, and compliance requirements can pose operational challenges and increase costs.

D. Technological Disruptions: Rapid technological changes and the adoption of alternative feeding solutions could render existing products less competitive.

E. Supply Chain Disruptions: Disruptions in the supply chain due to geopolitical issues, transportation problems, or natural disasters can affect the timely delivery of products and raw materials

SEGMENT WISE AND PRODUCT WISE PERFORMANCE

The Company is engage into the business of manufacturing, mechanized expelling, packaging, trade and selling of Maize oil (Non-edible), Maize Cake (Cattle Feed), Maize Germ, Cotton cakes, Cotton Bales, Cotton Wash Oil, Cotton Seed, Cotton Soap and Gunny Bags.

(In Lakhs)

Particular	Revenue from operations
	2025-26	2024-25
Cotton Bales	289.06	2650.10
Cotton Cake	2911.26	3016.67
Cotton Seeds	359.24	188.54
Cotton Wash Oil	1137.09	1145.43
Empty Gunny Bags	116.47	104.98
Maize Oil	20858.45	17921.26
Maize Cake	14346.93	14050.5
Cotton Soap	3.03	2.65
Maize Bran Dry	6.27	-
Waste & Scrap Sales	1.88	-
All In One	3.10	-
Hajma Hajam	0.15	-
Masi No Nusko	7.09	-
Other Sale	355.61	5.67

OUTLOOK

Indias external sector remained resilient during FY 2025 26, supported by stable macroeconomic fundamentals, robust domestic demand, and sustained policy reforms, reinforcing a positive outlook for long-term economic growth. The Company continued to strengthen its strategic position by enhancing production capabilities, expanding its market presence across Gujarat, and reinforcing its commitment to delivering high-quality cattle feed solutions.

The Company remains focused on building a trusted and recognized brand in the Indian cattle feed industry by consistently offering products that support livestock health, productivity, and nutritional requirements. Through continuous innovation, operational excellence, and customer-centric initiatives, we aim to further strengthen our market position and create sustainable value for all stakeholders.

During FY 2025 26 and in the years ahead, the Company will continue to focus on the following strategic priorities:

Reinforce brand recognition and customer trust across existing and emerging markets.

Continue investing in research and development to develop innovative, nutritionally balanced, and high-quality cattle feed products.

Expand and strengthen the dealer and distribution network to improve market penetration and customer accessibility.

Increase geographical reach by entering new markets and enhancing our presence across key regions of India.

Focus on manufacturing scientifically formulated cattle feed products that meet the evolving nutritional requirements of livestock while supporting the growing demand for quality and productivity-driven animal nutrition.

RISK AND CONCERNS

Supply Chain Disruptions: Any disruptions in the supply chain, such as transportation strikes or natural disasters, can affect our ability to procure raw materials and deliver finished products to our customers.

Competitive Pressure: The cattle feed industry is highly competitive, with numerous players vying for market share. We need to continuously innovate and improve our products to stay ahead of the competition.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUECY

The Company has put in place an adequate system of internal control commensurate with its size and nature of business to safeguard and protect from loss, unauthorized use or disposition of its assets. All the transactions are properly authorized, recorded and reported to the Management. The Company is following all the applicable Accounting Standards for properly maintaining the books of accounts and reporting financial statements. The internal auditor of the Company checks and verifies the internal control system and monitors them in accordance with the policy adopted by the Company. During the year, such controls were tested and no reportable material weakness in the design or operation was observed.

FINANCIAL AND OPERATIONAL PERFORMANCE

(In Lakhs)

Particulars	Standalone Financial Year		Consolidated Financial year
	2025-26	2024-25	2025-26	2024-25
Income From Operations	40,316.70	39,085.79	-	39242.78
Other Income	50.94	37.03	-	37.31
Total Income	40,367.64	39,122.82	-	39280.09
Total Expenses	39,539.98	38,411.77	-	38555.14
Profit / (Loss) before Tax	827.66	711.04	-	724.95
Less: Tax Expenses	225.85	213.8	-	217.63
Net Profit / (Loss) for the year after	601.81	497.25	-	507.32
Tax
Less: Minority interest in Profit)/losses	-	-	-	3.52
Net Profit / (Loss) for the year (after	601.81	497.25	-	503.80
Minority interest adjustment)
Earning Per Shares (Basic in Rs)	11.14	9.21	-	9.33

HUMAN RESOURCES/INDUSTRIAL RELATIONS

The Company had cordial and harmonious industrial relations at all levels of organizations. The company believes that the industry has the tremendous potential to impact the society, nation and the world positively. Its employees are major stakeholders and their efforts have direct stake in the business prospectus of the organization. The employees have extended a very productive cooperation in the efforts of the management to carry the company to greater heights. The Company considers employees as their biggest competitive advantages. The Company takes initiative like training and development for its people to increase the performance. The Company has taken various steps to improve and enhance skill of its people. The Company has continued to give special attention to human resources and overall development.

Policies related to Prevention of Sexual Harassment at workplace ("POSH") and vigil mechanism / Whistle-blower are also available to all employees and workers. The Company is committed to creating and maintaining an atmosphere in which all employees can work together, without fear of sexual harassment, exploitation or intimidation. Whistle Blower Policy also enables employees to raise concerns about unacceptable, improper or unethical practices being followed in the organization, without necessarily informing their supervisors

Your Company is committed to identifying, preventing, and mitigating adverse human rights issues which affect employees, suppliers, and other external stakeholders. The Company offers various safeguards to all stakeholders and maintain them with respect for their privacy and dignity.

The Company would like to sincerely appreciate the valuable contribution and support of employees towards the performance and growth of the Company. The management team comprises of professionals with a proven track record. The Company continues to remain focused and sensitive to the role of human resources in optimizing results in all its areas of working and its industrial relations also continue to be cordial.

KEY FINANCIAL RATIO

Particular	31.03.2026	31.03.2025
Debtors Turnover	23.05	20.87
Inventory Turnover	10.43	11.66
Interest Coverage Ratio	3.76	2.95
Current Ratio	1.47	1.48
Debt Equity Ratio	1.05	1.13
Operating Profit Margin	2.86	4.52
Net Profit Margin	1.49	1.27
Return on Net-worth	14.73	15.63

CAUTIONARY STATEMENT

Certain statement made in this report describing Companys Objective, Projects, estimates and expectations may be forward looking statement within the applicable laws and Regulations. Actual results may differ from such expectations and forward looking statement due to various risk and uncertainties. Several factors affecting companys operation like economic condition affecting demand and supply, Government regulations and Tax Laws, Competitions prevailing at the relevant time, natural calamities etc. The Company assumes no responsibility to publicly amend, modify or revise any of these statements on the basis of any subsequent developments, information or events.