Pervasive Commodities Ltd Management Discussions

1. GLOBAL ECONOMIC OUTLOOK:

The global economic environment during the Financial Year 2025- 26 remained dynamic and was influenced by geopolitical developments, inflationary trends, monetary policy decisions, fluctuations in interest rates, changing trade policies and varying consumer demand. Commodity markets continued to remain sensitive to global macroeconomic conditions, supply- demand dynamics, currency movements and geopolitical developments.

Commodity markets constitute an important part of the global trading ecosystem and include a wide range of agricultural commodities such as wheat, pulses, spices, grains, coffee, cocoa and sugar, as well as metals and energy commodities. During the year, commodity prices remained volatile due to changing global demand, supply disruptions, weather conditions, inventory levels and international trade developments.

The increased participation of commercial participants, investors and other market participants continued to support the development of organised commodity markets. Derivative instruments such as forwards, futures and options continued to provide mechanisms for price discovery and risk management.

During the year, supply- chain disruptions, climatic conditions, geopolitical tensions and changes in monetary policies across major economies influenced commodity prices and international trade flows. In this evolving environment, Pervasive Commodities Limited continued to monitor global developments and adopt appropriate business strategies to protect stakeholder interests and support sustainable growth.

2. OVERVIEW OF THE INDIAN ECONOMY:

The Indian economy continued to demonstrate resilience during Financial Year 2025- 26, supported by domestic consumption, infrastructure development, investment activity and continued growth across key sectors of the economy.

Domestic demand remained an important driver of economic activity, while government initiatives relating to infrastructure, agriculture, manufacturing and digitalisation continued to create opportunities across various industries.

The agricultural sector continued to remain an important component of the Indian economy. Agricultural production and commodity prices, however, remained subject to monsoon conditions, weather variability, input costs, government policies and domestic and international demand.

For the commodity- trading sector, the continued development of organised markets, digital trading infrastructure, logistics and warehousing facilities provides opportunities for growth. Pervasive Commodities Limited continues to focus on its core agricultural product trading activities while closely monitoring developments in the Indian economy.

3. GLOBAL COMMODITY MARKET:

The global commodity market remained subject to significant fluctuations during Financial Year 2025- 26. Agricultural commodity prices were influenced by weather conditions, crop production, inventory levels, international trade policies, transportation costs and changes in consumption patterns.

The commodity market continued to provide opportunities for traders and other participants through improved price discovery, increased market participation and the availability of risk- management instruments.

The Company believes that disciplined procurement, efficient inventory management, timely market assessment and appropriate riskmanagement practices are essential for sustainable operations in the commodity- trading business.

Pervasive Commodities Limited continues to monitor market trends and developments in agricultural commodities and evaluates business opportunities based on prevailing market conditions.

4. INDUSTRY STRUCTURE AND DEVELOPMENTS:

The commodity- trading industry acts as an important link between producers, suppliers, processors, traders and consumers. Agricultural commodities constitute a significant part of the commodity ecosystem and are characterised by seasonal demand and supply patterns.

The industry is gradually becoming more organised, technology- driven and transparent. Digitalisation has improved access to market information and enabled faster execution and monitoring of transactions.

At the same time, commodity trading remains exposed to price volatility, inventory risks, regulatory developments, climatic conditions and changing market demand.

The Company believes that businesses with prudent procurement practices, strong market knowledge, efficient inventory management and effective risk controls will be better positioned to benefit from opportunities in the sector.

5. OPPORTUNITIES AND THREATS:

Opportunities:

Growing Domestic Demand for Agricultural Commodities: Increasing consumption of agricultural commodities driven by population growth, rising incomes and changing consumption patterns is expected to support demand and create opportunities for the Company.

Growth in Population and Urbanisation: Continued population growth and urbanisation are expected to increase the demand for food and agricultural commodities, thereby supporting the overall growth of the agricultural commodities market.

Development of Organised Agricultural Supply Chains: Increasing formalisation and development of organised agricultural supply chains may create opportunities for efficient sourcing, trading, storage and distribution of agricultural commodities.

Government Initiatives and Agricultural Infrastructure: Government initiatives aimed at strengthening agricultural infrastructure, warehousing, logistics, market linkages and related facilities may provide opportunities for the Company to expand its operations.

Growth of Digital and Technology- Enabled Trading: Increasing adoption of digital platforms, technology- enabled trading and improved market information systems may enhance market access, transaction efficiency and business opportunities.

Threats:

Commodity Price Volatility: Significant fluctuations in agricultural commodity prices may affect trading margins, inventory valuations and the overall profitability of the Company.

Adverse Weather and Climatic Conditions: Changes in weather conditions, climatic events, droughts, excessive rainfall and other natural factors may adversely affect agricultural production, availability and prices of commodities.

Changes in Agricultural Production: Variations in crop yields, production levels and availability of agricultural commodities may impact sourcing, trading volumes and operating performance.

Changes in Government Policies and Regulations: Changes in agricultural policies, taxation, trade regulations, procurement norms and other government regulations may affect the Companys operations and business prospects.

6. SEGMENT-WISE/PRODUCT-WISE PERFORMANCE:

The Company is primarily engaged in a single operating segment, i.e. Agricultural Product Trading.

The Revenue from Operations of Pervasive Commodities Limited during Financial Year 2025- 26 was Rs. 4,306.07 lakhs, as compared with Rs. 3,027.60 lakhs during Financial Year 2024- 25.

The Company remains focused on improving operational efficiency, inventory management and profitability.

7. FINANCIAL PERFORMANCE:

The financial performance of Pervasive Commodities Limited for the Financial Year 2025- 26 is summarised below:

Particulars	FY 2025-26	FY 2024-25
Revenue from Operations	4,306.07	3,027.60
Profit / Loss After Tax	(4.31)	8.88

Revenue from operations increased during the year under review.

The management continues to focus on improving trading margins, controlling costs, strengthening working- capital management and improving the overall efficiency of business operations.

The detailed financial performance of the Company is provided in the audited Financial Statements forming part of the Annual Report.

8. OPERATIONAL PERFORMANCE:

During Financial Year 2025- 26, Pervasive Commodities Limited continued its operations in the agricultural product trading segment.

The Companys operational performance remained dependent on procurement prices, selling prices, commodity demand, inventory holding periods, market fluctuations and logistics costs.

The Company faced certain operational challenges during the year, including challenges relating to inventory and perishable stock, which had an impact on the financial performance.

9. FUTURE OUTLOOK AND BUSINESS STRATEGY:

The Company remains cautiously optimistic about the long- term prospects of the agricultural commodity- trading sector.

Going forward, Pervasive Commodities Limited intends to strengthen its core business and improve the quality and efficiency of its operations.

The Companys key areas of focus include:

Strengthening agricultural commodity trading activities. Improving procurement and inventory management. Enhancing supplier and customer relationships. Improving working- capital utilisation. Strengthening risk- management practices. Improving operational controls. Using technology and market information for better decision- making. Exploring commercially viable business opportunities. Improving profitability and sustainable stakeholder value.

The future outlook remains subject to economic conditions, commodity prices, agricultural production, government policies, geopolitical developments and other factors beyond the Companys control.

10. RISK MANAGEMENT:

Risk management is an integral part of the Companys business operations.

The Company seeks to identify and monitor various risks relating to commodity prices, procurement, inventory, customers, suppliers, liquidity and regulatory compliance.

Appropriate checks and controls are maintained over business transactions, while management periodically reviews market developments and operational risks.

Particular attention is given to inventory management and the handling of agricultural and perishable commodities. The Company also seeks to maintain appropriate insurance arrangements and controls for safeguarding its assets.

The Companys objective is to ensure that identified risks are appropriately monitored and managed without adversely affecting its long- term business objectives.

11.INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

Pervasive Commodities Limited has established an internal control framework designed to provide reasonable assurance regarding the accuracy and reliability of financial reporting, safeguarding of assets, compliance with applicable laws and regulations and efficiency of operations.

The Company maintains appropriate checks and balances relating to procurement, sales, inventory, payments, accounting and financial reporting.

Internal controls are periodically reviewed by management and appropriate corrective measures are undertaken wherever necessary.

The Company continues to focus on strengthening controls relating to inventory management, working- capital utilisation, supplier advances, insurance coverage and operational processes.

The management believes that the internal control systems are adequate and appropriate for the size and nature of the Companys operations.

12. HUMAN RESOURCES AND INDUSTRIAL RELATIONS:

Human resources continue to be an important component of the Companys operations.

During the year under review, Pervasive Commodities Limited maintained cordial relations between management and employees. The Company continued to give due attention to employee engagement, professional development and maintaining a positive working environment.

The management believes that a capable and motivated workforce contributes to improved operational efficiency and sustainable business performance.

The Company remains committed to maintaining a professional workplace and ensuring that employees are aligned with the Companys business objectives and applicable compliance requirements.

13. MATERIAL FINANCIAL AND COMMERCIAL TRANSACTIONS:

During the Financial Year 2025- 26, the Company undertook transactions in the ordinary course of its business.

The Company maintains appropriate oversight over financial and commercial transactions and continues to emphasise transparency, proper authorisation and compliance with applicable statutory and regulatory requirements.

There were no material financial or commercial transactions outside the ordinary course of business requiring separate disclosure, except as disclosed in the Financial Statements and other relevant sections of the Annual Report.

14.KEY FINANCIAL RATIOS:

In accordance with the applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, the Company is required to provide details of significant changes in key financial ratios, wherever applicable.

The financial performance of Pervasive Commodities Limited during Financial Year 2025- 26 was influenced by operational and inventory- related factors, and certain financial ratios may therefore have changed significantly compared with the previous financial year.

The relevant key financial ratios, comparative figures and reasons for significant variations are disclosed separately in the Financial Statements forming part of this Annual Report.

The management continues to monitor profitability, liquidity, leverage, working capital and other relevant financial indicators to support effective financial and operational decision- making.

15.CAUTIONARY/FORWARD-LOOKING STATEMENT:

This Management Discussion and Analysis contains statements concerning the objectives, expectations, projections and future business prospects of Pervasive Commodities Limited, which may constitute forward- looking statements within the meaning of applicable securities laws and regulations.

These statements are based on certain assumptions and expectations concerning future events and are subject to various risks and uncertainties. Actual results may differ materially from those expressed or implied in such statements.

Important factors that could cause actual results to differ include changes in global and domestic economic conditions, commodity prices, agricultural production, weather conditions, government policies, taxation and regulatory frameworks, interest rates, foreign- exchange movements, geopolitical developments, supply- chain conditions, availability of working capital, competition, litigation and other internal or external factors.

Pervasive Commodities Limited does not undertake any obligation to publicly update or revise any forward- looking statements, except as may be required under applicable laws and regulations.

The Management Discussion and Analysis should be read in conjunction with the audited Financial Statements and other disclosures contained in the Annual Report of Pervasive Commodities Limited for the Financial Year 2025- 26.

Registered Office: C- 806, Titanium City Canter, Near Sachin Tower, 100 Ft Road, Satellite, Jodhpur Char Rasta, Ahmedabad, Ahmadabad City, Gujarat, India - 380 015

By the Order of the Board of Pervasive Commodities Limited

Place: Ahmedabad Date: 3rd September, 2026

Sd/- Chandrakant Ramniklal Soni Director DIn:11899795

Sd/- Fagun Chandrakant Soni Managing Director DIn:10610730