Rajgor Castor Derivatives Ltd Management Discussions

? INDUSTRY STRUCTURE AND DEVELOPMENTS

Global Industry Overview

Castor oil is one of the worlds most important industrial vegetable oils owing to its unique chemical composition and wide range of industrial applications. It is extensively used in pharmaceuticals, personal care, cosmetics, lubricants, paints & coatings, polymers, specialty chemicals, agriculture and several high-performance industrial products.

The global castor industry continues to benefit from increasing demand for renewable, biodegradable and bio-based raw materials as industries worldwide shift towards sustainable manufacturing practices. Growing environmental awareness and the increasing adoption of green chemistry are expected to support long-term demand for castor oil and its derivatives.

During FY 2025-26, however, the global business environment remained challenging due to geopolitical uncertainties, supply chain disruptions, volatile commodity prices and subdued demand in certain international markets. These factors affected international trade flows and export demand across the vegetable oil and specialty chemicals sector, including castor derivatives. Despite these short-term challenges, the long-term outlook for the global castor industry remains positive, supported by increasing industrial applications, rising demand for sustainable products and continued innovation in bio-based chemicals.

Indian Castor Industry:

India continues to play a pivotal role in the global castor industry, meeting more than 90% of the global demand for castor oil and its derivatives. According to the Solvent Extractors Association of India (SEA), exports of castor oil and its derivatives are estimated at over ^15,000 crore (approximately US$1.8 billion) annually, reaffirming Indias dominant position in the global castor value chain. Gujarat remains the countrys largest castor-producing state, contributing nearly 86% of Indias castor seed production, thereby providing a strong competitive advantage to processors located in the state.

As per the latest SEA Castor Crop Survey, Indias castor seed production increased by approximately 11% to around 17.6 lakh tonnes during 2025-26, an increase of 11% over the previous years production of 15.90 lakh tonnes, supported by favourable crop conditions and improved agricultural practices. The availability of raw materials, integrated processing infrastructure and strong export capabilities continue to reinforce Indias position as the global hub for castor oil manufacturing.

Demand for castor oil continues to be driven by its increasing use in pharmaceuticals, lubricants, cosmetics, polymers, specialty chemicals and other industrial applications. The long-term outlook for the industry remains positive due to the global transition towards renewable and environmentally sustainable products.

Companys Position in the Industry:

Rajgor Castor Derivatives Limited has established itself as a manufacturer of quality castor-based products with an installed manufacturing capacity of 450 MT per day.

The Companys product portfolio comprises:

> Castor Oil First Stage Grade (F.S.G.)

> Castor De-Oiled Cake

> High Protein Castor De-Oiled Cake

The Company has developed a strong domestic marketing network across eight major states, namely Gujarat, Delhi, Madhya Pradesh, Rajasthan, Maharashtra, Uttar Pradesh, Haryana and Punjab, while maintaining its international presence in China.

During FY 2025-26, the Company delivered a strong financial performance despite a challenging export environment.

Particulars	FY 2025-2026	FY 2024-2025	Growth
Revenue from Operations (^ Lakhs)	87,220.17	62,540.04	39.46%
Profit After Tax (^ Lakhs)	1262.62	900.75	40.17%
Net Worth (^ Lakhs)	9,538.95	8,300.09	14.93%

The Companys strong growth in revenue and profitability reflects improved operational efficiency, higher domestic sales and disciplined cost management. The increase in net worth demonstrates continued strengthening of the Companys financial position.

Industry Challenges

The castor derivatives industry continues to operate in a dynamic business environment and is exposed to several operational and market-related challenges, including:

> Volatility in castor seed prices due to seasonal production and weather conditions.

> Fluctuations in global demand and export markets.

> Foreign exchange fluctuations affecting export competitiveness.

> Rising freight and logistics costs.

> Intense competition and pricing pressure.

> Regulatory and environmental compliance requirements.

The Company continuously reviews these risks through prudent procurement practices, effective inventory management, operational efficiency initiatives and customer diversification strategies.

Industry Opportunities

The Company believes that the long-term fundamentals of the castor derivatives industry remain favourable, supported by:

> Increasing global demand for renewable and bio-based industrial products.

> Rising applications of castor derivatives in pharmaceuticals, cosmetics, lubricants and specialty chemicals.

> Indias dominant position in the global castor value chain.

> Government initiatives supporting manufacturing, exports and infrastructure development.

> Increasing preference for environmentally sustainable raw materials.

> Opportunities for expanding value-added castor derivatives and strengthening domestic market penetration.

Backed by its 450 MT per day manufacturing capacity, experienced management team and established customer relationships, Rajgor Castor Derivatives Limited remains well-positioned to capitalise on emerging opportunities and deliver sustainable long-term growth.

? BUSINESS OVERVIEW

Rajgor Castor Derivatives Limited ("RCDL") is engaged in the manufacturing and marketing of castor oil and castor- based products catering to diverse industrial applications. Leveraging its strategic manufacturing location in Gujarat, the Company benefits from proximity to one of the worlds largest castor seed-growing regions, ensuring efficient procurement of quality raw materials and a robust supply chain.

The Company manufactures a diversified portfolio comprising Castor Oil First Stage Grade (F.S.G.), Castor De-Oiled Cake and High Protein Castor De-Oiled Cake, which find applications across industries such as pharmaceuticals, lubricants, chemicals, cosmetics, agriculture and specialty industrial products.

With an installed production capacity of 450 MT per day, the Company continues to strengthen its manufacturing capabilities through process optimisation, quality assurance and operational excellence. During the year under review, the Company focused on improving operational efficiencies, strengthening customer relationships and enhancing market penetration across domestic markets while maintaining its presence in international markets.

The Company has established a marketing network across Gujarat, Delhi, Madhya Pradesh, Rajasthan, Maharashtra, Uttar Pradesh, Haryana and Punjab and continues to explore opportunities for expanding its domestic and international footprint.

Financial And Operational Performance

FY 2025-26 was a year of healthy financial growth for the Company despite a challenging global business environment. The Company recorded strong growth in revenue and profitability, supported by higher domestic demand, efficient capacity utilisation, disciplined cost management and improved operational performance.

Financial Highlights

(^ in Lakhs)

Particulars	Current Year 31.03.2026	Previous Year 31.03.2025
Revenue from Operations	87220.17	62,540.04
Other Income	294.56	197.20
Total Revenue	87514.74	62737.23
Total Expenditure (Including Change in Inventories)	85816.55	61345.73
Profit Before Tax	1698.19	1391.50
Less: Tax expense/ Deferred tax liability	435.57	490.76
Profit after Tax	1262.62	900.75
Earnings Per Share (Basic)	5.28	3.77
Earnings Per Share (Diluted)	-	-

The Company achieved revenue from operations of ^87,220.17 lakh during FY 2025-26 as against ^62,540.04 lakh in the previous financial year, registering a robust growth of 39.46%. The growth was primarily driven by improved domestic sales, effective customer servicing and efficient execution of business strategies.

Profit after Tax increased to ^1,262.62 lakh from ^900.75 lakh, reflecting a growth of 40.17%, attributable to operational efficiencies, prudent cost management and improved profitability.

The Companys net worth increased to ^9,538.95 lakh as on 31 March 2026 from ^8,300.09 lakh in the previous year, demonstrating continued strengthening of its financial position.

Operational Performance

Operational excellence continued to remain a key focus area for the Company during FY 2025-26. The Company adopted various initiatives aimed at improving productivity, optimising resource utilisation and strengthening operational efficiencies across its manufacturing operations.

Continuous emphasis on quality control, timely procurement of raw materials, inventory optimisation and process improvements enabled the Company to meet customer requirements efficiently while maintaining product quality standards.

The Companys installed manufacturing capacity of 450 MT per day provides adequate scalability to cater to future growth in domestic and export markets. Management continues to evaluate opportunities for enhancing capacity utilisation and improving operational efficiencies through technology adoption and process optimisation.

Outlook

The management remains optimistic about the long-term prospects of the castor derivatives industry. Increasing global preference for sustainable and bio-based products, coupled with Indias leadership in castor seed production, is expected to support future industry growth.

The Company will continue to focus on expanding its domestic market presence, strengthening customer relationships, improving operational efficiencies, maintaining financial discipline and exploring opportunities in international markets as global demand improves.

Backed by a strong manufacturing base, experienced management team, established customer network and sound financial position, Rajgor Castor Derivatives Limited remains well-positioned to create sustainable value for its stakeholders while pursuing long-term profitable growth.

? RISKS AND CONCERNS

The Company operates in a dynamic business environment and is exposed to various strategic, operational and financial risks that could impact its business performance. The Board of Directors and the management continuously monitor these risks and implement appropriate mitigation measures to safeguard the Companys interests and ensure sustainable growth.

Raw Material Price Risk

Castor seeds constitute the primary raw material for the Companys manufacturing operations. Prices of castor seeds are influenced by factors such as monsoon conditions, crop production, seasonal availability, demand-supply dynamics and government policies. Significant fluctuations in raw material prices may impact the Companys operating margins and working capital requirements.

The Company mitigates this risk through prudent procurement practices, continuous monitoring of market trends, efficient inventory management and maintaining long-term relationships with suppliers.

Market and Demand Risk

Demand for castor oil and its derivatives is linked to the performance of end-user industries such as pharmaceuticals, specialty chemicals, lubricants, cosmetics and agriculture. Changes in market conditions, customer preferences or industrial demand may affect sales volumes.

The Company continues to diversify its customer base, strengthen domestic market presence and develop long-term customer relationships to minimise demand-related risks.

The Company regularly monitors international market developments and foreign exchange movements and adopts suitable commercial strategies to manage export-related risks.

Operational Risk

Manufacturing operations are exposed to risks arising from equipment breakdown, power interruptions, supply chain disruptions, quality issues and availability of skilled manpower.

The Company has established preventive maintenance systems, quality control procedures, safety practices and business continuity measures to minimise operational disruptions.

Regulatory and Compliance Risk

The Company is subject to various laws and regulations governing corporate, environmental, taxation, labour and industrial operations. Any changes in the regulatory framework may have an impact on business operations.

The Company has a robust compliance framework and regularly reviews regulatory developments to ensure timely compliance with applicable laws and regulations.

? INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has established an adequate system of internal controls commensurate with the nature, size and complexity of its business operations. These controls are designed to safeguard the Companys assets, ensure the accuracy and reliability of financial reporting, promote operational efficiency and ensure compliance with applicable laws, regulations and internal policies.

The internal control framework covers key business processes including procurement, production, inventory management, finance, sales and statutory compliances. The Company has documented policies and standard operating procedures for major operational and financial activities.

The Internal Auditors periodically review the effectiveness of internal controls, operational processes and compliance systems. Their observations and recommendations are placed before the Audit Committee, which regularly reviews the adequacy and effectiveness of the internal control environment and monitors implementation of corrective actions, wherever required.

The management believes that the existing internal control systems are adequate and effective to support the Companys business objectives.

? HUMAN RESOURCES AND INDUSTRIAL RELATIONS

The Company firmly believes that its employees are its greatest strength and remain the cornerstone of its continued growth and success. It is committed to fostering a safe, inclusive and performance-driven work environment that encourages learning, innovation, integrity and teamwork.

The Company continues to focus on employee development through skill enhancement, knowledge sharing and continuous improvement initiatives. Equal importance is accorded to employee welfare, workplace safety and maintaining a healthy organisational culture.

As on 31 March 2026, the Company had 48 employees on its rolls.

Industrial relations remained cordial throughout the year, and the Company did not experience any material industrial disputes or disruptions affecting its operations.

? KEY FINANCIAL RATIOS

The key financial ratios of the Company are presented in the table below:

Particulars	FY 2025-26	FY 2024-25	% Change	Explanation
Current Ratio	1.41	1.89	-25.31	The current ratio decreased primarily due to an increase in short term borrowings consequent to the disbursement/utilization of enhanced working capital facilities during the year. The additional borrowings were utilized to support increased business operations and revenue growth, resulting in a proportionately higher increase in current liabilities compared to current assets.
Debt-Equity Ratio	0.79	0.53	50.50	The increase in the Debt-Equity ratio was mainly attributable to additional borrowings arising from the enhancement of working capital limits during the year. The funds were utilized progressively to support higher business volumes and operational growth, resulting in proportionately higher increase in debt as compared to shareholders equity.
Debt Service Coverage Ratio	2.17	1.47	47.64	The debt service coverage ratio improved during the year primarily on account of higher earnings generated from increased business operations and revenue growth. The enhanced working capital facilities availed during the year supported the expansion in business activities, leading to improved profitability and a stronger capacity to service debt obligations.
Return on Equity (%)	14.16	11.46	23.54	The increase in return on equity was mainly attributable to improved profitability generated from the growth in business operations during the year. As the growth in profit outpaced the increase in average shareholders equity. The company recorded a higher return on equity compared to previous year.
Inventory Turnover Ratio	24.67	22.26	10.85	No significant change
Trade Receivables Turnover Ratio	7.05	6.95	1.42	No significant change
Trade Payables Turnover Ratio	22.26	23.06	-3.48	No significant change
Net Capital Turnover Ratio	22.24	10.65	108.85	The net capital turnover ratio improved significantly during the year owing to higher revenue generated from expanded business operations. The company achieved better utilization of working capital resources, resulting in a higher turnover ratio as compared to the previous year.
Net Profit Margin (%)	1.45	1.44	0.51	No significant change
Return on Capital Employed (%)	16.41	17.12	-4.13	No significant change
Return on Investment (%)		0.13	-100	The return on investment ratio declined to Nil during the year due to the non- availability of income from investments. The company focused on deploying its resources towards operational and business growth activities during the year, resulting in no measurable return on investment funds.

The above ratios have been computed in accordance with the applicable Guidance Note on Financial Statements issued by the Institute of Chartered Accountants of India. Explanations for changes of 25% or more, wherever applicable, shall be provided in accordance with the requirements of Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

? FUTURE STRATEGY AND OUTLOOK

The long-term outlook for the castor derivatives industry continues to remain favourable, driven by increasing demand for renewable and bio-based products across pharmaceuticals, specialty chemicals, lubricants, cosmetics and industrial applications.

Rajgor Castor Derivatives Limited remains committed to leveraging its manufacturing capabilities, strategic location and operational expertise to strengthen its market position and achieve sustainable growth.

The Companys strategic priorities include:

> Strengthening its presence in the domestic market.

> Enhancing customer relationships and expanding the customer base.

> Improving operational efficiency and optimising manufacturing processes.

> Increasing capacity utilisation of its 450 MT per day manufacturing facility.

> Expanding the portfolio of value-added castor-based products.

> Exploring opportunities in new international markets while strengthening its existing export business.

> Maintaining prudent financial management and cost optimisation.

> Upholding high standards of quality, governance and regulatory compliance.

With its sound financial position, experienced management team, established manufacturing infrastructure and customer-centric approach, the Company is confident of creating sustainable long-term value for all stakeholders.

? CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis describing the Companys objectives, estimates, expectations, projections or outlook may constitute "forward-looking statements" within the meaning of applicable securities laws and regulations. These statements are based on certain assumptions and expectations of future events and involve known and unknown risks and uncertainties.

Actual results may differ materially from those expressed or implied in such forward-looking statements due to various factors including changes in economic conditions, government policies, market demand, raw material prices, foreign exchange fluctuations, competitive pressures, regulatory developments and other factors beyond the Companys control.

The Company undertakes no obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances except as required under applicable laws.

For and on behalf of Board of Directors of
RAJGOR CASTOR DERIVATIVES LIMITED
Sd/-	Sd/-
MAHESHKUMAR SHANKARLAL RAJAGOR	BRIJESHKUMAR VASANTLAL RAJGOR
CHAIRMAN AND NON-EXECUTIVE DIRECTOR	MANAGING DIRECTOR
DIN:07765332	DIN: 08156363
DATE: 26.08.2026	DATE: 26.08.2026
PLACE: AHMEDABAD	P LAC E : AHMEDABAD