Purple Agrotech Industries Ltd Management Discussions

1. Overall Review

During the financial year under review, the Company has changed its line of business to trading of agricultural commodities. The change was undertaken after evaluating the prevailing market conditions, future growth opportunities, and the long-term strategic objectives of the Company. The Board believes that the new business activities offer better prospects for sustainable growth, profitability, and enhanced value creation for the stakeholders. The Board is confident that the change in the nature of business will contribute positively to the Companys performance in the coming years.

2. Global Economic Overview

The global economic landscape during FY 2025 26 remained shaped by elevated geopolitical risks, persistent trade policy uncertainty, and heightened vulnerability of global supply chains to conflict related disruptions. The escalation and spillover risks emanating from the conflict in West Asia emerged as a key macroeconomic shock, disrupting energy markets and critical trade routes, particularly through the Strait of Hormuz and Red Sea corridor. These developments led to higher commodity prices, renewed inflationary pressures, and increased volatility across financial markets, with disproportionate impacts on energy importing and emerging economies. At the same time, the Russia Ukraine conflict and other regional flashpoints continued to weigh on global growth prospects, reinforcing geopolitical fragmentation and policy uncertainty.

The global trade environment became increasingly complex during the year, marked by a resurgence of protectionist measures and frequent recalibration of tariff policies by major economies. Recent tariff actions and trade related policy signals by the United States and other advanced economies have added to uncertainty around cross border trade flows, investment decisions, and supply chain configurations. Corporates globally continued to respond by diversifying sourcing bases, increasing near-shoring or friend- shoring strategies, and front-loading trade where feasible, though such adjustments have also resulted in higher costs and transitional inefficiencies Against this backdrop, global growth moderated from recent highs. According to the World Banks latest outlook, across value chains. global GDP growth is expected to slow down to around 2.5 percent in FY26 and 2.8 percent in FY27, reflecting a moderation in economic momentum amid a challenging macroeconomic environment. This outlook factors in persistent downside risks arising from prolonged geopolitical tensions, commodity price shocks, and tighter financial conditions. Overall, the global macroeconomic environment during FY 2025 26 remained fragile, characterized by cautious optimism tempered by significant downside risks, reinforcing the need for resilience, policy credibility, and strategic agility across economies and businesses alike.

3. Indian Economic Overview

Despite volatile global environment and heightened geopolitical tensions in West Asia, Indian economy remained resilient. As per RBI Annual Report FY 2025-26, real GDP growth is estimated at 7.6% in FY26, up from 7.1% in FY25, driven by strong domestic fundamentals.

Agriculture remained stable on the back of favorable monsoons and healthy reservoir levels, supporting rural demand - tractor sales rose 19% crossing 1 million units. Services sector continued to be the key growth engine with strong performance in financial, real estate, trade, transport and communication, reflected in robust PMI, air traffic, hotel occupancy and digital payments. IMF in its April 2026 Outlook has projected India to grow at 6.5% in FY27 & FY28, retaining its position as the fastest growing major economy. While conflict in West Asia poses risks through crude prices and freight costs, strong domestic demand, structural reforms and higher public capex continue to support growth momentum.

4. About the Company:

Incorporated on 4th July, 1974. Presently Purple Agrotech Industries Limited is dealing in agricultural commodities. The Companies trading portfolio includes of wheat, rice, paddy, maize and pulses.

5. Segment wise performance:

During the financial year under review, the Company did not undertake any distinct operational activities. Accordingly, reporting on segment-wise performance is not applicable.

6. Outlook:

Despite near-term headwinds from weather variability and external geopolitical factors, the Indian agriculture sector remains structurally strong over the medium term. The initial forecast of below-normal rainfall for Southwest Monsoon 2026 poses a risk to kharif arrivals and may lead to short-term price volatility and pressure on rural sentiment.

However, strong domestic demand, continued policy support, growing adoption of technology-led farming and expanding export opportunities for agri-commodities are expected to sustain momentum across the agri-value chain.

For companies engaged in agricultural trading and distribution, this environment presents opportunities to leverage strong sourcing networks, ensure efficient supply chain management and cater to rising demand for quality agri-inputs and agri-produce. With focus on product mix, inventory management and farmer engagement, the Company is well positioned to navigate near-term volatility and capitalize on medium-term growth opportunities. The Directors are under the process of exploring other avenues of diversifying the business.

7. Financial Review

During the year the financial performance is as under:

(Rs. in Lakhs)

7. Risk and concerns

The Companys operations in agri-commodity trading are subject to climatic risks, price volatility, regulatory changes in trade and stock limits, working capital intensity and quality & storage risks. Fluctuations in monsoon and Government policies may impact availability and margins. The Company manages these risks through diversified sourcing, efficient inventory management, quality checks, prudent credit policy and close monitoring of market and policy developments.

9. Opportunities and Threats:

Opportunities: The agri-trading business offers significant opportunities driven by strong domestic consumption, rising export demand, government thrust on agri-infrastructure and scope for value-added and branded products. The Company is in process of establishing sourcing network and distribution capabilities position it well to capitalize on these trends.

Threats: The business is exposed to monsoon variability, commodity price volatility, changes in government trade policies and stock limits, and high working capital requirements. Competition from unorganized players and storage & quality risks remain key monitorable which the Company mitigates through prudent procurement, inventory management and quality control practices.

The improvement in the global economic situation coupled with protection given by Indian Government provides opportunity for growth and it is set to grow in Expected line Outlook. The company expects the pressure on Quality Customer to continue due to competition.

10. Internal Control System and their adequacy

The internal control system is looked after by Directors themselves, who also looked after the day-to-day affairs to ensure compliance of guide lines and policies, adhere to the management instructions and policies to ensure improvements in the system. Though there was no internal auditor in the company, management is keenly looking after all the matter meticulously. Further Company is in process of appointing internal auditor.

11. Material Developments in Human Resources and Industrial Relations Front:

Company takes pride in the commitment, competence and dedication shown by its employees in all areas of business. Your directors wish to convey their gratitude and place on record their appreciation for all the employees at all levels for their hard work, solidarity, cooperation and dedication during the year. Industrial relations were cordial throughout the year.

12. Environmental Issues

As the company is not in the field of manufacture, the matter relating to produce any harmful gases and the liquid effluents are not applicable. Accordingly, there are no environmental issues.

13. Financial Performance with Respect to Operation Performance

The Company has all the plans for tight budgetary control on key operational performance indication with judicious deployment of funds without resorting to any kind borrowing where ever possible. However, the plans were in some crunches due to last year unanticipated events and natural causes on the world at large.

14. Details Of Significant Changes (i.e. Change of 25% or more as compared to the immediately previous financial year) in key financial ratios. The Company has identified the following ratios as key financial ratios:

15. Cautionary Statement

Statement in this report on Management Discussion and Analysis may be forward looking statements within the meaning of applicable security laws or regulations. These statements are based on certain assumptions and expectations factors that could make a difference to the companys operations include global and domestic demand supply of future events. Actual results could differ materially, from those expressed or implied. Important conditions, finished goods prices, raw material cost and availability and changes in government regulation and tax structure, economic development within India and the countries with which the company has business contacts and other factors such as litigation and industrial relations.

The Company assumes no responsibility in respect of forward - looking statements, which may be amended or modified in future on the basis of subsequent developments, information or events.