Modi Naturals Ltd Management Discussions

Indian Economic Overview

India continues to be one of the fastest-growing major economies globally, supported by strong macroeconomic fundamentals, sustained domestic demand, and ongoing structural reforms. The economy is estimated to have grown by 7.6% in FY 2025-26, following an average growth rate of 8.2% during FY 2021-25, reflecting the resilience of economic activity across key sectors. Growth has been driven by robust private consumption, government-led capital expenditure, and improving investment activity, which have collectively strengthened productive capacity and supported employment generation. Manufacturing and services sectors continued to demonstrate resilience, with positive momentum in industrial production, services activity, and capital goods imports indicating sustained investment demand. Looking ahead, Indias GDP growth is projected at 6.9% in FY 2026-27, underpinned by favorable agricultural conditions, continued infrastructure development, and steady expansion across manufacturing and services sectors.

On the inflation front, price pressures have remained relatively well contained despite emerging global uncertainties. Headline CPI inflation stood at 3.5% in April 2026. while core inflation remained stable at 3.7%, reflecting the effectiveness of monetary policy measures and anchored inflation expectations. The Reserve Bank of India has maintained a neutral policy stance, balancing growth objectives with inflation management within its medium-term target of 4% (¦*-/- 2%). However, risks from rising commodity prices, geopolitical tensions, and potential disruptions in global energy markets could exert upward pressure on input and transportation costs. Indias external sector remains resilient, supported by healthy foreign direct investment inflows, which are estimated to have increased to approximately USD 90 billion during FY 2025-26. Strong capital inflows, stable financial markets, and prudent macroeconomic management continue to reinforce Indias position as a leading growth engine among emerging economies. (Source- PBI Bulletin May26)

FMCG Sector (ET)

The Indian FMCG sector is expected to witness healthy growth momentum driven by a combination of resilient consumer demand and gradual price-led recovery. Industry leaders have indicated that inflationary pressures arising from higher commodity, packaging, logistics, and energy costs are resulting in calibrated price increases across product categories. At the same time, consumption demand remains stable, enabling companies to achieve growth through both volume expansion and pricing actions. Leading consumer goods companies have expressed confidence that value growth in the sector will be supported by a balanced contribution from volumes and prices, while continued urban recovery, resilient rural demand, premiumization trends, and the increasing penetration of modern trade and quick commerce channels are expected to further strengthen industry growth prospects in the coming years.

Ethanol Sector

Indias ethanol industry continued to witness strong growth momentum during Ethanol Supply Year (ESY) 2025-26, driven by the governments focus on enhancing energy security, reducing crude oil imports, and promoting cleaner fuels. As of May 31,2026, cumulative ethanol supplies reached approximately 615 crore litres, representing around 71% of the contracted volume of 862 crore litresfor the ongoing supply year. Grain-based ethanol remained the dominant source of supply, contributing nearly 405 crore litres, with maize emerging as the largest feedstock and accounting for approximately 225crore litresof ethanol production. Sugar-based feedstocks also recorded healthy performance, supplying about 210 crore litres and achieving a higher contract fulfilment rate than grain-based sources,supported by strong contributions from sugarcane juice and B-heavy molasses. Monthly ethanol deliveries remained robust and stable throughout theyear, highlighting the increasing maturity of the ethanol ecosystem and the growing

participation of both grain- and sugar-based distilleries. The continued expansion of blending infrastructure, supportive government policies, and rising demand from oil marketing companies are expected to sustain longterm growth opportunities for the ethanol sector in India. (Source - Chinimandi)

Our Business

Consumer Division

The Consumer Segment delivered a strong performance during FY26, driven by robust growth across both edible oils and packaged foods. The business benefited from improving consumer demand, increasing brand acceptance, and deeper market penetration, while continuing to build a scalable and profitable growth platform.

Our flagship edible oil brand, Oleev, continued to strengthen its position among health-conscious consumers through its focus on quality, nutrition, and healthier cooking solutions. Crowing consumer trust and expanding brand visibility supported steady growth and reinforced Oleevs position in the premium edible oils category.

The packaged foods portfolio also recorded encouraging progress. Our pasta range continued to perform strongly and remains among the top-selling products across leading quick-commerce platforms, reflecting increasing consumer acceptance, strong product visibility, and the effectiveness of our distribution strategy. We also expanded our product portfolio with the launch of Hing, which received a positive response from both consumers and trade partners. Building on this momentum, we plan to introduce new offerings such as Pasta Masala and Ready-to Eat products, further strengthening our presence in the fast-growing packaged foods segment.

Brand building remains a key strategic priority. At the same time, we significantly expanded our distribution network across general trade, modern trade, e-commerce, and quick-commerce channels. Our products are now reaching a wider consumer base across Tier I and Tier II cities, improving accessibility and strengthening our pan-India presence.Quick commerce emerged as a key growth channel.

Looking ahead, we remain focused on driving operational efficiencies through a leaner working capital model, improving cash generation, and enhancing returns. A higher contribution from premium and value-added products Is expected to further strengthen brand equity and profitability. Supported by continued Investments In brands, expanding distribution, growing consumer acceptance, and ongoing product innovation, we are confident of sustaining our growth momentum and scaling the Consumer Business to the next level in theyearsahead.

Bulk Division

The Bulk Business operated in a challenging environment over the past two years, marked by sharp corrections in edible oil prices that resulted in inventory losses across the industry. In response, we adopted a leaner inventory management approach, enabling tighter working capital control, reducing exposure to price volatility, and improving operational agility. This disciplined approach has strengthened capital efficiency and enhanced the overallfinancial profile ofthe business

The Bulk Business is inherently seasonal, with the second half of the year is strong due to fresh crop arrivals and improved availability of raw materials. Leveraging this seasonal advantage, coupled with our prudent inventory strategy, we were able to optimize procurement, improve realizations, and enhance operational efficiency during the year.

Despite the challenging backdrop, the Division delivered a strong performance during FY26, recording revenue growth of 25%. The gradual stabilization of market conditions, coupled with our prudent inventory strategy, supported improved business performance during the year. Furthermore, the recent recovery in edible oil prices is expected to positively impact realizations and provide additional support to the business going forward.

As part of our ongoing efforts to optimize operations and enhance manufacturing efficiencies, we undertook the strategic consolidation of our production footprint by discontinuing operations at the Pilibhit solvent extraction plant, which had become economically unviable. The affected volumes are being absorbed by a nearby facility with

adequate spare capacity, ensuring seamless continuity of operations and customer service. This consolidation is expected to improve capacity utilization, strengthen cost efficiencies, and streamline the overall manufacturing network without any material impact on business performance.

Looking ahead, we remain focused on driving operational excellence through prudent inventory management, efficient capital allocation, and continuous cost optimization. Supported by a more agile operating model and improving industry dynamics, we are well positioned to capitalize on market opportunities and deliver sustainable growth.

Ethanol Business

The Ethanol Division delivered significant progress during FY26, supported by strong industry fundamentalsand a favorable policy environment. The Government of Indias continued focus on enhancing energy security, reducing dependence on crude oil imports, and increasing ethanol blending has created a robust growth platform for the sector. The achievement of the E20 blending target ahead of schedule, along with ongoing initiatives to promote higher ethanol blends such as E85 for compatible vehicles, reinforces the long-term growth potential of the industry. As a renewable fuel produced from agricultural feedstocks such as maize and sugarcane, ethanol is expected to play an increasingly important role in Indias transition towards cleaner and more sustainable energy solutions. Grain-based ethanol continues to gain prominence in the countrys ethanol blending programme, with maize emerging as a preferred feedstock due to its availability, efficiency, and economic viability. This structural shift is expected to drive sustained demand growth for grain based ethanol and create significant opportunities for industry participants.

In line with these opportunities, our wholly owned subsidiary, Modi Biotech Private Limited, successfully commissioned and commenced commercial operations at its expanded grain-based ethanol facility in Chhattisgarh during the year. The expansion increased the plants capacity from 130 KLPD to 282 KLPD - 117% increase over FY26 representing a major milestone in our growth journey and significantly enhancing our production capabilities.

The expanded facility is expected to improve operating efficiencies, increase production volumes, and strengthen the Divisions contribution to overall business performance As operations continue to stabilize and capacity utilization improves, the benefits of the expansion are expected to become increasingly visible in the coming quarters.

For the current Ethanol Supply Year, Received order of Rs 400 cr for 47.9k KLfrom variousOMC.Onboarded two new customersfurtherstrengthening Longterm relationshipwithOMC.

Looking ahead, supported by expanded manufacturing capacity, strong policy support, and rising blending requirements, we believe the Ethanol Division is well positioned to capitalize on the significant long-term opportunities emerging in the sector.

Consolidated Financials Performance

The revenue from operations for theyear isgrew by 8.5% to Rs. 719.2 crore year-on-year EBITDA for theyearisgrew by 31.2% to Rs. 73.5 crore. EBITDA margirsstood at10.2% PAT for theyear is grew by 62.1% to Rs. 50.3 crore. PAT margin stood at 7.0%

Cash flow from operations stood at Rs. 61.1 crores compared to 48.8 crore in FY25 ROCE stood at 19.9% com pared to 18.3% in Fy25

Debt-to-equity stood at 0.94 compared to 1.22 in FY25

Networking capital day stood at 62 days in March 26ascompared to 66 days in March 25.

The Company remains optimistic about its growth prospects, supported by strong momentum across its business. The expanded ethanol capacity is expected to drive revenue growth and generate cash flows that will be reinvested into strengthening the FMCC portfolio through product innovation, brand building, and distribution expansion.

For FY 2026-27, the Company targets revenues of Rs. 925-965 crore, EBITDA of Rs. 100-105 crore, and PAT of Rs. 66-70 crore. With a diversified business model, growing consumer presence, and alignment with Indias clean energy and consumption-driven growth story, the Company is well positioned to deliver sustainable growth and create longterm value for stakeholders.

Our Journey

1974: incorporation of the Company 1985: Listed on BSE& Geographical Greenfield solvent extraction plant (unit 1) m Pilibhit UP.

1992: Establishment of the edib le oil refinery in Pilibhit, U P 2002: Merger of sister concern Neha Oils Limited with Modi Naturals

2009:Launch of Refined Rice Oil by up-gradation of refinery

2010: Launch ofiarai, a mass prestige brand (Mustard oil-based products TSrai Shudh and larai Tasty)

2015: Started new consumer brands: Rizolo, Olivana Wellness & Miller Canola Oil 2017: Raised Moneythrough preferential allotment Launched Oleev Health & Oleev Smart

Incorporated Modi Biotech Pvt. Ltd (W.O.S) for the purpose of setting up a distillery for the manufacture of ethanol

Commericalised 2 ,fl phase of Ethanol Division

Usted on NSE

202

1990: Acquisition of Solvent plant (bysster concern Neha Oils Limited) in Pilibhit 1991: Rights issue at par of Modi Naturals equity to exsting shareholders

2003: Award for Highest Processor of Rice Bran in India by SEA of India 2005: Establishment of oil mil inPihbhit

2012:Launched Oleev Brand and various other products

2013:Launched the cooking oil brand Oleev Active (blended)

Launched PIPO& MOdiN in ready-tocook segment Two new facility addition; Hyderabad & Sonepat (Haryana)

Commericalised 1* phase of Ethanol Divsion

- Traditional commodity business

- Products include Rice Bran Oil, Rice BranDe- Oiled Cakes, Rice Bran Wax

¦ Bulk Oil

¦ Branded

Premium grocery segment Products include Olive Oil, CanolaOil, Rice bran oil, Popcorn, Pasta, Peanut Butter

Strategy Going Ahead

- Increase revenue from branded sales

- Increased focus on the food segment while expanding premium branded edible oil

¦ Develop new products in the fast-growing niche categories

Position R A	- 3 rd Largest Super Premium Edible Oil Brand
A 6	- Largest in the Goodness of
	Olive Oil Space

	Mfg. Units 3
Distributors 450+
o o	Direct Reach 50,000+ RetailStores
[Rpll	Modern Retail 3,000+ Outlets

INTFGRATF D VAIL)F-ADDFD PI AYFR

OFFERS COMPREHENSIVE RICE RANGE FROM OIL TO ETHANOL

Grain based Ethanol using

rice

Multisource oil using rice bran oil and olive oil

* Rice Bran Oil (Bulk Oil + Branded)

* Rice Bran de-oiled Cakes

* Rice Bran Wax

Business Verticals

+ +

Consumer

Division

hi J

3 rd Largest Premium Edible Oil Brand Largest player in Goodness of olive oil 2 nd Ranked Super-Premium Refined Oil Brand on Large E-Commerce Platform

Preference to Olive Oil with Consumer Shift to Healthy Products

Expanding Presence in Food Products Leveraging Distribution Network for Expanding Food Product Distribution in Multiple Categories

Bulk Business Division

mZ )

One of the Largest Rice Bran Oil Makers in India

Mature Business Generating Stable Cash Flows A talue Addition Model within its Region A Geographical Advantage with Respect to Raw Material

Ethanol Division

One of the First Greenfield Grain based Ethanol Distilleries in Chattisgarh

* Prior Expertise in Sourring Grain & By Products

* Promising to be aScalable Profit Centre

De-coding the Ethanol Business

High Margin Product

Large Demand Supply gap

Government Incentives

Proximity to Petroleum Depot Low Cost of Production

Environment Friendly

Received an approval for 310 KLD distillery

1 st phase of 130 KLPD commenced in Q3FY24 with a capital expenditure of Rs 150 cr

- 2 nd Phase of 180 KLPD is in progress with an estimated capital

expenditure of Rs 100 cr I

Ethanol made from surplus and damaged food grain such as broken or surplus rice

instead of molasses. Rice as a product is best Husk is used as a fuel for the plant,

understooddue to the traditional rice bran oil saving powe r and fuel cost

business

Plant is located in Chhattisgarh which is the only state that gets 3 crops in a year

Close proximity to procurement of raw materials saves transport costs and enhances margins

14

RESOLVED FURTHER that the Board of Directors of the Company (including its Committee thereof), be and is hereby authorised to do all such acts, deeds, matters and things as may be considered necessary, desirable or expedient to give effect to this resolution.

5. Appointment of Secretarial Auditors.

To consider and if thought fit, to pass, with or without modification, the following resolution as an Ordinary Resolution :

RESOLVED THAT pursuant to the provisions of Regulation 24A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI Listing Regulations) read with applicable provisions of the Companies Act, 2013, as amended, and based on the recommendation(s) of the Audit Committee and the Board of Directors of the Company (Board), M/s. A.K. Verma & Co., Practicing Company Secretaries having firm registration number P1997DE091500, be and is hereby, appointed as the Secretarial Auditors of the Company for a period of five years to hold office from the conclusion of this Annual General Meeting till the conclusion of the 57 th Annual General Meeting of the Company to be held in the year 2031, to conduct Secretarial Audit of the Company in terms of Section 204 and other applicable provisions of the Companies Act, 2013 read with Regulation 24A and other applicable provisions of the SEBI Listing Regulations, for the period beginning from the Financial Year 2026-27 through the Financial Year 2030-31, at such remuneration as may be mutually agreed upon between the Board, based on the recommendation(s) of the Audit Committee, and the Secretarial Auditors of the Company..

RESOLVED FURTHER THAT the Board of Directors of the Company be and are hereby severally authorised to do all such acts, deeds, matters and things as may be considered necessary, desirable or expedient to give effect to this Resolution.

6. Ratification of remuneration payable to Cost Auditors

To consider and if thought fit, to pass the following resolution as an Ordinary Resolution:

RESOLVED THAT the remuneration of f 70,000/- (Seventy Thousand only) plus Goods and Service Tax and out of pocket expenses, if any, payable to M/s. Manisha & Associates (FRNo.: 000321), Cost Accountants, who was appointed as the Cost Auditors of the Company for the Financial Year 2026-27 as recommended by the Audit Committee and approved by the Board of Directors of the Company, in terms of Section 148 of the Companies Act, 2013 read with the Companies (Audit and Auditors) Rules 2014, be and is hereby ratified.

Registered Office: for and on behalf of the Board

D-54, 2 nd Floor, Okhla Phase-I,

New Delhi-110 020 Sd/-

CIN: L15142DL1974PLC007349 Anil Modi

Chairman & Managing Director

06 th July, 2026, New Delhi DIN - 00187078