Pioneer Agro Extracts Ltd Management Discussions

The Management of Pioneer Agro Extracts Limited (PAEL or the Company) is pleased to present the Management Discussion and Analysis Report for the financial year ended 31 st March, 2026 . This report provides an overview of the Companys business environment, industry developments, operational and financial performance, opportunities, risks, internal control systems and future outlook.

1. Company Overview

Pioneer Agro Extracts Limited was incorporated with the objective of manufacturing hydrogenated vegetable oils and refined edible oils. Over the years, the Company established a strong presence in the edible oil industry through its quality products marketed under the brand ISHWAR .

In response to changing business dynamics and increasing competition within the edible oil sector, the Company divested its edible oil business in the year 2015. Since then, the Company has continued to evaluate new business opportunities aligned with its long-term strategic objectives.

The Company continues to uphold the Pioneer Groups philosophy of creating sustainable value by efficiently utilizing natural resources and leveraging the experience of its promoters. The management remains committed to identifying viable business opportunities that can create long-term value for shareholders while maintaining sound corporate governance practices.

2. Industry Structure and Development

The Indian agro-processing sector continues to play a significant role in the countrys economic development. Government initiatives supporting food processing, agricultural infrastructure, value addition and rural development continue to create opportunities for businesses operating in the sector.

Although the Company is presently not engaged in edible oil manufacturing activities, it continues to monitor developments in the agro-processing and allied industries. The management believes that Indias growing economy, increasing focus on food security, infrastructure development and policy reforms may provide opportunities for diversification and long-term business growth.

The Company continues to evaluate new avenues that are commercially viable and capable of generating sustainable returns for its shareholders.

3. Operational Performance

During the financial year under review, the Company continued to focus on maintaining financial discipline, strengthening its governance framework and efficiently managing its available resources.

The Company also made significant additions to its Property, Plant and Equipment during the year, thereby strengthening its long-term asset base. Simultaneously, management continued to monitor operating costs and evaluate potential business opportunities for future growth.

. Financial Performance

The financial performance of the Company during FY 2025-26 is summarized below:

Particulars	Fy 2025-26 (INR)	Fy 2024-25 (INR)
Revenue from Operations	102.43	103.39
Other Income	25.70	42.52
Total Income	128.14	145.91
Total Expenses	213.51	137.23
Profit /(Loss) Before Tax	(127.65)	8.68
Profit /(Loss) After Tax	(125.51)	8.32
Total Assets	411.33	538.84

Performance Review

During the financial year 2025-26, the Company recorded revenue from operations of 102.43 lakh and other income of 25.70 lakh , resulting in total income of 128.14 lakh . The total expenditure during the year was 213.51 lakh , resulting in a loss before tax of 127.65 lakh and a loss after tax of 125.51 lakh .

The financial performance during the year reflects the limited level of business activity and the expenditure incurred by the Company during the period.

5. Asset Base

The Company significantly strengthened its fixed asset base during the financial year.

Particulars	FY 2025-26 (INR)	FY 2024-25 (INR)
Net Property, Plant & Equipment	255.51	2.80
Other Non-Current Assets	7.10	5.72
Total Non-Current Assets	262.60	8.52

6. Internal Control Systems and Their Adequacy

The Company has established adequate internal financial controls commensurate with the size and nature of its business. These controls are designed to ensure orderly and efficient conduct of operations, safeguarding of assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records and timely preparation of reliable financial information. The Internal Audit function is carried out by M/s. Yudhister Sharma & Co., Chartered Accountants , who periodically review the adequacy and effectiveness of the internal control systems. The Internal Audit Reports are placed before the Audit Committee for its review and appropriate recommendations.

The Board believes that the internal financial control systems are adequate and were operating effectively during the financial year.

7. Opportunities and Threats

Considering the limited level of operations during the year, the Companys performance remains dependent upon improvement in business conditions, market opportunities and optimum utilisation of its available resources.

The Company continues to evaluate suitable business opportunities based on their commercial viability and remains focused on improving its operational and financial performance.

8. Risks and Concerns

The Companys performance may be affected by general economic conditions, market conditions, availability of suitable business opportunities and other factors affecting its operations.

The Company continues to monitor these factors and take appropriate measures, as considered necessary, to manage the risks associated with its business activities.

9. Key Financial Ratios

Ratio	Formula	FY 2025- 26	Fy 2024- 25	Change (%)	Explanation
Current Ratio	Current Assets / Current Liabilities	16.58	60.05	(72.39%)	Decline in current assets, particularly loan assets and other current assets.
Debt-Equity Ratio	Total Debt / Shareholders Equity	0.00	0.00	NA	The Company has no borrowings.
Debt Service Coverage Ratio (DSCR)	Not Applicable	NA	NA	NA	No term borrowings.
Return on Equity (RoE)	PAT / Average Net Worth	(27.17%)	1.61%	NA	Loss incurred during the year due to higher depreciation and operating expenses.
Inventory Turnover Ratio	Cost of Goods Sold / Average Inventory	NA	NA	NA	No inventory disclosed in the financial statements.
Trade Receivables Turnover Ratio	Revenue / Average Trade Receivables	NA	NA	NA	No trade receivables reported
Trade Payables Turnover Ratio	Purchases / Average Trade Payables	NA	NA	NA	Trade payables not separately disclosed.
Net Capital Turnover Ratio	Revenue / Working Capital	0.73	0.20	265.00%	Improvement due to reduction in excess working capital.
Net Profit Ratio	PAT / Revenue from Operations 100	(122.53%)	8.05%	NA	Net loss during the year mainly due to increased depreciation and other expenses.

Return on Capital Employed (RoCE)	EBIT / Capital Employed	(31.98%)	1.66%	NA	Decline owing to loss before tax and increase in capital employed.
Interest Service	EBIT / Finance	(8,536.00)	869.00	NA
Coverage Ratio	Cost				Finance cost is negligible ( 0.01 lakh); ratio is not meaningful.

10. SWOT Analysis

Strengths	Weakness
Experienced Promoters	Limited operational scale
Strong governance practices	Dependence on investment income
Healthy capital base	Lower operating revenue
Opportunities	Threats
New business opportunities	Economic uncertainties
Agro-processing sector growth	Regulatory changes
Strategic investments	Market competition

11. Human Resources & Industrial Relations

The Company continues to maintain an appropriate human resource structure commensurate with the nature and scale of its present operations.

Industrial relations continued to remain cordial throughout the financial year. The Company did not experience any industrial disputes or labour unrest during the year. The management continues to maintain appropriate employee-related practices and ensures compliance with applicable labour and employment laws.

12. Future Outlook

The Company remains committed to exploring new business opportunities that align with its long-term strategic objectives and create sustainable value for shareholders.

The management will continue to focus on prudent financial management, efficient utilization of resources, strengthening governance practices and identifying commercially viable opportunities that support long-term growth.

The Board remains optimistic about the Companys future prospects and believes that its strong financial discipline and experienced management will provide a solid foundation for future business expansion.

13. Cautionary Statement

Statements in this Management Discussion and Analysis describing the Companys objectives, expectations, estimates or predictions may constitute forward-looking statements. Actual results could differ materially from those expressed or implied due to various factors, including changes in economic conditions, market conditions, business opportunities and other factors beyond the control of the Company.

Declaration

As provided under LODR Regulation, 2015 with the Stock Exchanges, all Board Members and Senior Management Personnel have affirmed compliance with the Companys Code of Business Conduct and Ethics for the year ended 31 st March, 2026.

		For and on behalf of the Board
Date: 14 th August, 2026		Pioneer Agro Extracts Limited
Place: Pathankot
	Sd/-	Sd/-
	Jagat Mohan Aggarwal	Sanjeev Kumar Kohli
	(Managing Director)	(Director)
	DIN: 00750120	DIN: 07144225