Phyto Chem India Ltd Management Discussions

For the year ended March 31,2026, your Directors are pleased to present the Management Discussion and Analysis report.

The Indian agriculture sector continues to play a significant role in the countrys economy and remains a key driver of demand for crop protection products. During FY 2025-26, the sector continued to benefit from Government initiatives aimed at improving agricultural productivity, promoting sustainable farming practices, enhancing soil health, and strengthening crop risk mitigation. The Soil Health Card Scheme has promoted balanced and scientific use of agricultural inputs, while the Pradhan Mantri Fasal Bima Yojana continues to support farm resilience by providing insurance coverage against crop losses. The Indian chemical and petrochemical sector also continues to receive policy support for strengthening domestic manufacturing and improving global competitiveness. The agrochemical industry is witnessing increasing emphasis on regulatory compliance, product stewardship, environmental sustainability, and responsible use of crop protection products.

The Company expects opportunities from improving agricultural productivity, increased awareness of scientific farming, expansion of crop protection products, export opportunities, product registrations, and Government initiatives supporting agriculture and domestic manufacturing.

The business continues to face risks from regulatory changes, raw material price volatility, climatic uncertainties, intense competition, counterfeit products, foreign exchange fluctuations, and increasing environmental compliance requirements.

The Company benefits from experienced management, technical expertise, established customer relationships, manufactur- ing capabilities, regulatory knowledge, quality-focused operations, and an experienced workforce.

The Companys performance may be affected by agricultural demand, weather conditions, working capital requirements, receivable management, raw material availability, competition, and regulatory developments. The Company continues to mitigate these risks through prudent inventory management, diversified sourcing, disciplined credit monitoring, and operational efficiency initiatives.

The Company maintains adequate internal financial controls commensurate with the size and nature of its business. Internal controls, supported by periodic internal audits and oversight by the Audit Committee and the Board, help ensure safeguarding of assets, reliability of financial reporting, regulatory compliance, and operational efficiency.

The Company recognizes its employees as its most valuable asset. It continues to focus on employee development, training, workplace safety, and maintaining harmonious industrial relations. Industrial relations remained cordial throughout the year.

The outlook for the Indian agrochemical industry remains positive, supported by Government initiatives to enhance agricultural productivity, scientific farming practices, and increasing demand for quality crop protection products. The Company remains focused on operational excellence, sustainable growth, prudent financial management, and creating long-term value for stakeholders.

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations, or predictions may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ materially due to changes in economic conditions, Government policies, climatic factors, regulatory developments, market competition, input costs, and other factors beyond the Companys control.