Sarveshwar Foods Ltd Management Discussions

2025-26

ABOUT SARVESHWAR FOODS LIMITED

Sarveshwar Foods Limited is one of Indias leading integrated food companies with a proud legacy of 136 years in the rice industry. Headquartered in Jammu & Kashmir, the Company has evolved from a traditional rice processor into a diversified food enterprise with a growing presence across premium Basmati rice, organic foods, healthy staples, and value-added FMCG products.

Operating through a fully integrated business model, Sarveshwar manages the entire value chain—from farmer engagement and paddy procurement to milling, processing, branding, retail, exports, and distribution. This integrated approach enables the Company to maintain superior quality, complete traceability, operational efficiency, and long-term value creation.

The Company markets its products under two flagship brands—Sarveshwar and NIMBARK. While Sarveshwar has earned the trust of consumers through its premium Basmati and specialty rice offerings, NIMBARK has emerged as the Companys fast-growing organic and wellness brand, inspired by the philosophy of Living the Satvik Way. The brand offers a carefully curated portfolio of certified organic food products, including pulses, flours, spices, dry fruits, edible oils, superfoods, Himalayan honey, Shilajit, mushrooms, and other health-focused products. Through NIMBARK, the Company continues to strengthen its presence in the rapidly growing organic and premium food segment.

During FY 2025-26, the Company further expanded its retail footprint with 15 exclusive stores, comprising 8 Sarveshwar Food Stores and 7 NIMBARK Organic Stores, while strengthening its omni-channel presence through organised retail and leading e- commerce platforms. The Company also continued to expand its international business through strategic export partnerships and its wholly owned subsidiary, Green Point Pte. Ltd., Singapore, reinforcing its position in global markets.

Sarveshwar remains committed to empowering farmers through sustainable sourcing, strategic partnerships with Farmer Producer Organisations (FPOs), and initiatives that strengthen the agricultural value chain. The Companys participation in the ?197.29 crore Integrated Basmati Cluster Development Project under the Holistic Agriculture Development Programme (HADP) reflects its commitment to promoting scientific farming, improving productivity, and enhancing farmer prosperity across Jammu & Kashmir.

Driven by innovation, sustainability, and responsible business practices, Sarveshwar continues to invest in advanced technologies, product innovation, premiumisation, and operational excellence. Supported by globally recognised quality certifications, modern manufacturing infrastructure, experienced leadership, and a robust governance framework, the Company remains well positioned to accelerate sustainable growth and create long-term value for all stakeholders.

Today, Sarveshwar Foods stands at the intersection of agriculture, innovation, sustainability, and global trade. With a resilient integrated business model, expanding international presence, growing retail footprint, and unwavering commitment to quality, the Company is well positioned to drive its next phase of sustainable growth while delivering enduring value to all its stakeholders.

Global Economic Overview

The global economy demonstrated resilience during FY 2025-26 despite persistent geopolitical tensions, elevated interest rates, inflationary pressures, and supply chain disruptions. While growth remained uneven across regions, easing inflation and gradual monetary policy adjustments supported economic activity in several major markets.

Global trade continued to recover, driven by resilient consumer demand, improving supply chains, and sustained growth in food and agricultural commodities. At the same time, businesses increasingly focused on strengthening supply chain resilience, enhancing operational efficiency, and investing in sustainable practices to navigate an evolving global landscape.

Agriculture and food security remained at the forefront of global priorities, reinforcing demand for high-quality, traceable, and sustainably sourced food products. Consumer preferences continued to shift towards premium, health-oriented, and organic offerings, creating long-term opportunities for integrated food companies with strong sourcing capabilities, established brands, and global distribution networks.

Despite macroeconomic uncertainties, the long-term outlook for the global food industry remains positive, supported by population growth, rising incomes, urbanisation, and increasing awareness of food quality, sustainability, and nutrition.

Global Economy - Outlook

The global economy is expected to witness steady growth over the medium term, supported by easing inflation, improving trade flows, and gradual recovery in consumer demand. While geopolitical developments, supply chain disruptions, and evolving trade policies may continue to influence market dynamics, the long-term outlook for the global food and agriculture sector remains positive. Increasing focus on food security, sustainability, and premium food consumption is expected to create significant opportunities for integrated food companies with strong global supply chains.

Indian Economy

India remained one of the fastest-growing major economies during FY 2025-26, supported by resilient domestic demand, robust public infrastructure investments, stable financial markets, and continued policy reforms. Strong macroeconomic fundamentals, improving manufacturing activity, and sustained government capital expenditure reinforced the countrys longterm growth outlook.

The agriculture and food processing sectors continued to play a pivotal role in economic development, supported by favourable policy initiatives, digital transformation, improved logistics, and increasing private sector participation. Government programmes promoting value addition, food processing, exports, and rural development further strengthened the agricultural ecosystem.

India also witnessed growing demand for premium, branded, and health-focused food products, driven by rising disposable incomes, rapid urbanisation, and evolving consumer preferences. The expansion of organised retail and e-commerce platforms has accelerated the shift towards branded packaged foods, creating significant opportunities for companies operating across the food value chain.

With a large consumer base, abundant agricultural resources, and a supportive policy environment, India remains well positioned to strengthen its leadership in global food production, processing, and exports while creating sustainable longterm opportunities for the agri-food industry.

Indian Economy - Outlook

India remains one of the worlds fastest- growing major economies, supported by robust domestic consumption, favourable demographics, sustained infrastructure investments, and progressive policy reforms. Continued emphasis on agricultural modernization, food processing, export promotion, and digital transformation is expected to further strengthen the countrys growth trajectory. These structural advantages position Indias food and agriculture sector for sustained long-term expansion.

Global Rice Industry

The global rice industry continued to demonstrate resilience during FY 2025-26, supported by steady consumption, improving production, and sustained international trade. As rice remains a staple food for more than half of the worlds population, demand continued to remain stable across both developed and emerging economies.

Growing consumer preference for premium, specialty, and sustainably sourced rice varieties has created new opportunities for exporters. Increasing emphasis on food safety, traceability, quality assurance, and sustainable farming practices is reshaping global trade dynamics, with buyers increasingly favouring reliable suppliers capable of meeting stringent international standards.

Despite geopolitical uncertainties and changing trade policies in certain regions, global demand for premium rice remained healthy. Countries with integrated supply chains, strong processing capabilities, and established export networks continue to benefit from expanding international market opportunities.

The long-term outlook for the global rice industry remains favourable, supported by population growth, rising food consumption, expanding international trade, and increasing demand for premium rice products across global markets.

Global Rice Industry - Outlook

Global demand for premium and specialty rice is expected to remain resilient, driven by population growth, changing dietary preferences, and increasing focus on food quality and traceability. Export opportunities are likely to remain favourable for reliable suppliers capable of consistently meeting international quality standards. Companies with integrated operations, diversified market presence, and strong supply chain capabilities are expected to benefit from these evolving global trends.

Indian Rice Industry

India continues to be the worlds largest exporter of rice, supported by its diverse agro-climatic conditions, extensive cultivation base, and globally recognised premium rice varieties. The countrys strong production capabilities, competitive pricing, and established export infrastructure have further strengthened its leadership position in international markets.

Indian Basmati rice continues to enjoy strong global demand owing to its superior aroma, taste, grain length, and quality. Rising consumption across the Middle East, Europe, North America, and other international markets has reinforced Indias position as the preferred supplier of premium Basmati rice.

Domestically, increasing urbanisation, changing consumption patterns, and rising preference for branded and packaged food products continue to drive demand for premium rice. Consumers are increasingly seeking products that offer consistent quality, food safety, authenticity, and traceability, encouraging companies to strengthen branding, product innovation, and distribution capabilities.

Looking ahead, favourable export opportunities, government support for agricultural development, and increasing global preference for premium rice products are expected to support the long-term growth of the Indian rice industry

Indian Rice Industry - Outlook

India is well positioned to maintain its leadership in the global rice trade, supported by strong production capabilities, premium Basmati offerings, and established export infrastructure. Rising demand for branded rice, increasing value addition, and continued government support for agriculture and exports are expected to drive sustainable industry growth. The growing preference for premium, traceable, and responsibly sourced products further strengthens the long-term outlook for the sector.

Global Organic Food Industry

The global organic food industry continued to witness strong momentum during FY 202526, driven by increasing consumer awareness of health, nutrition, and sustainable living. Consumers across developed and emerging markets are increasingly opting for organic, natural, and minimally processed food products, creating robust demand across cereals, pulses, spices, superfoods, and other value-added categories.

India has emerged as one of the worlds leading producers of organic agricultural products, supported by favourable agroclimatic conditions, a growing base of certified farmers, and increasing policy support for sustainable agriculture. Rising disposable incomes, urbanisation, and changing lifestyle preferences have further accelerated domestic demand for premium and organic food products.

The rapid expansion of organised retail, e- commerce platforms, and direct-to-consumer channels has significantly improved the accessibility of organic products across the country. At the same time, increasing emphasis on product traceability, food safety, and clean-label offerings continues to reshape consumer buying behaviour and create new growth opportunities for branded organic food companies.

The organic food segment is also witnessing increasing investments in sustainable sourcing, responsible farming practices, environmentally friendly packaging, and product innovation, reinforcing its position as one of the fastest-growing segments within the food and FMCG industry.

Outlook

The long-term outlook for the organic food industry remains highly encouraging, supported by growing health consciousness, rising disposable incomes, and increasing consumer preference for sustainable food choices. As awareness around wellness, food safety, and environmental responsibility continues to strengthen, demand for certified organic and premium food products is expected to grow steadily, creating significant opportunities for companies with strong brands, integrated sourcing capabilities, and diversified product portfolios.

Indian Organic Food Industry

Indias organic food industry continued to witness strong growth during FY 2025-26, driven by increasing health awareness, rising disposable incomes, and growing consumer preference for safe, natural, and sustainably produced food products. The demand for organic staples, cereals, pulses, spices, edible oils, superfoods, and wellness products continued to gain momentum across both urban and semi-urban markets.

Government initiatives promoting organic farming, sustainable agricultural practices, and value-added food processing have further strengthened the industrys growth trajectory. At the same time, the rapid expansion of organised retail, exclusive brand outlets, and e-commerce platforms has significantly improved consumer access to certified organic products across the country.

Consumers are increasingly seeking transparency, traceability, and quality assurance in their food choices, encouraging food companies to invest in premium branding, product innovation, and responsible sourcing. This shift has accelerated the growth of branded organic food companies offering differentiated products aligned with evolving lifestyle and wellness trends.

The organic food segment continues to present significant opportunities for companies with integrated sourcing capabilities, trusted brands, diversified product portfolios, and strong distribution networks, making it one of the fastest-growing categories within Indias food and FMCG sector.

Outlook

The outlook for the Indian organic food industry remains highly positive, supported by favourable consumer trends, increasing awareness of preventive healthcare, and rising demand for premium and clean-label food products. Continued policy support, expanding retail infrastructure, and growing digital commerce are expected to further accelerate market growth, creating long-term opportunities for companies focused on innovation, sustainability, and trusted organic brands.

Opportunities

The Indian food and agri-processing sector continue to present significant long-term growth opportunities, driven by rising domestic consumption, increasing global demand for premium food products, favourable government initiatives, and evolving consumer preferences. Sarveshwar Foods Limited is well positioned to capitalise on these opportunities through its integrated business model, diversified product portfolio, established sourcing network, and expanding domestic and international presence.

Growing global demand for premium Indian Basmati rice, coupled with increasing preference for branded, packaged, organic, and health-oriented food products, presents significant opportunities for the Company. The continued expansion of organised retail, modern trade, exclusive brand outlets, e- commerce platforms, and digital commerce is expected to enhance market penetration and strengthen brand visibility across domestic and international markets.

Government initiatives promoting agricultural modernisation, food processing, value addition, export promotion, and farmer empowerment continue to create a favourable operating environment for the food processing industry. At the same time, increasing consumer

awareness regarding food quality, safety, traceability, and sustainability is expected to support demand for trusted and certified food brands.

The Company also sees significant opportunities through product innovation, portfolio diversification, premiumisation, technology-led manufacturing, and operational excellence. Its continued focus on strengthening farmer partnerships, expanding global distribution networks, and enhancing value-added offerings is expected to support sustainable long-term growth and reinforce its competitive position in the domestic as well as international markets.

Threats

The food processing industry continues to

operate in a dynamic and competitive environment, influenced by a range of external factors that may impact business performance. Climate change and unpredictable weather patterns can affect agricultural productivity, raw material availability, and crop quality, particularly in rice cultivation. Volatility in paddy prices, fluctuations in input costs, and changes in global commodity markets may also influence procurement costs and operating margins.

The Companys export business is exposed to geopolitical developments, changes in international trade policies, foreign exchange fluctuations, and evolving regulatory requirements in key export markets. In addition, increasing competition from domestic and international players, changing consumer preferences, and the growing need for continuous product innovation present ongoing challenges for companies operating in the food and FMCG sector.

Supply chain disruptions, logistics constraints, inflationary pressures, and evolving food safety and sustainability standards may also affect operational efficiency and market competitiveness. Furthermore, changes in government policies relating to agriculture, food processing, exports, taxation, and environmental regulations could have an impact on business operations.

The Company continuously monitors these external developments and remains focused on strengthening its integrated sourcing network, enhancing operational efficiency, diversifying markets, promoting innovation, and maintaining high standards of quality and governance to effectively address emerging challenges and sustain long-term growth.

Risks & Concerns

The Companys business is exposed to various strategic, operational, financial, regulatory, and market-related risks that are inherent to the food processing industry. These risks may arise from fluctuations in agricultural commodity prices, availability of quality raw materials, adverse climatic conditions, changing consumer preferences, foreign exchange movements, geopolitical developments, evolving trade policies, regulatory changes, supply chain disruptions, logistics constraints, and increasing competition across domestic and international markets.

The Company recognises that effective risk management is essential for sustainable business growth and long-term value creation. Accordingly, it has established appropriate systems and processes to identify, assess, monitor, and mitigate risks on a continuous basis. The risk management framework is integrated with the Companys business strategy and is periodically reviewed to ensure its effectiveness in addressing emerging risks and changing business conditions.

To mitigate these risks, the Company focuses on diversified sourcing, strong relationships with farmers and suppliers, prudent inventory management, export market diversification, stringent quality assurance systems, disciplined financial management, and continuous monitoring of regulatory developments and market conditions. The Company also continues to strengthen its operational resilience through process improvements, technology adoption, and effective governance practices, enabling it to respond proactively to evolving business challenges.

Segment-wise / Product-wise Performance

Sarveshwar Foods Limited continued to strengthen its diversified business portfolio during FY 2025-26 through its integrated operations across premium rice, organic foods, exports, and retail. The Companys focus on quality, product innovation, sustainable sourcing, and market expansion supported steady operational performance across its key business segments.

Rice Business

The rice business remained the Companys principal revenue contributor during the year. Strong domestic demand for premium branded Basmati rice, coupled with healthy export orders, supported business growth. The Company continued to leverage its integrated procurement, milling, processing, and packaging capabilities to deliver high- quality products while maintaining operational efficiency .

Organic & FMCG Business

The Companys organic and wellness business under the NIMBARK brand continued to witness encouraging growth, driven by increasing consumer preference for healthy, natural, and sustainably sourced food products. The product portfolio was further strengthened across categories such as organic pulses, flours, spices, edible oils, dry fruits, superfoods, Himalayan honey, Shilajit and other wellness products. The continued expansion of organised retail, exclusive stores, and digital commerce platforms further enhanced the brands market presence.

Export Business

Exports remained an important pillar of the Companys business strategy. Sarveshwar Foods continued to strengthen its presence across international markets by supplying premium-quality Basmati rice and specialty food products to customers across North America, Europe, the Middle East, Africa, and Asia-Pacific. The Companys emphasis on quality assurance, traceability, internationally recognised certifications, and long-standing customer relationships continued to support its global competitiveness.

Retail & Distribution

The Company further expanded its retail footprint during the year with 15 exclusive retail outlets , comprising 8 Sarveshwar Food Stores and 7 NIMBARK Organic Stores , while strengthening its presence through organised retail and leading e-commerce platforms. Supported by an extensive distribution network and omni-channel strategy, the Company continued to enhance customer reach, improve brand visibility, and increase accessibility of its premium and organic product portfolio across domestic markets.

Internal Control Systems & Their Adequacy

The Company has established an adequate and effective system of internal controls commensurate with the nature, size, and complexity of its business operations. The internal control framework is designed to provide reasonable assurance regarding the efficiency and effectiveness of operations, safeguarding of assets, accuracy and reliability of financial reporting, compliance with applicable laws and regulations, and effective management of business risks.

The Companys internal control environment is supported by well- defined policies, standard operating procedures, clearly defined authority levels, and robust financial and operational controls across all key business functions. These controls are regularly reviewed and strengthened to ensure operational efficiency, process discipline, and regulatory compliance.

The Company has adequate internal financial controls over financial reporting, which are designed to ensure the orderly and efficient conduct of business, prevention and detection of fraud and errors, safeguarding of assets, accuracy of accounting records, and timely preparation of reliable financial information. The management continuously reviews and strengthens the internal control framework through process improvements, technology adoption, and adherence to sound corporate governance practices to support sustainable business growth.

Discussion on Financial Performance with Respect to Operational Performance

The Companys operational performance during FY 2025-26 reflects the strength of its integrated business model, diversified product portfolio, and continued focus on operational excellence. Despite a dynamic business environment characterised by fluctuations in commodity prices, evolving global trade conditions, and inflationary pressures, Sarveshwar Foods Limited delivered resilient financial performance through disciplined execution and strategic business initiatives.

During the year, Revenue from Operations increased to f1,345.60 crore from f1,136.22 crore in the previous financial year. The growth was primarily driven by higher sales across domestic and international markets, improved demand for premium Basmati rice, expansion of the Companys branded product portfolio, and continued growth in the organic foods business under the NIMBARK brand.

The Company reported an EBITDA of f71.06 crore during the year. Operating profitability reflected the Companys continued focus on process efficiencies, effective procurement practices, quality-driven operations, and disciplined cost management.

Profit After Tax (PAT) increased to ?31.81 crore as compared to ?26.97 crore in the previous financial year. The improvement in profitability was supported by higher revenue, operational efficiencies, prudent financial management, and sustained emphasis on value-added products .

The Company continues to focus on enhancing manufacturing efficiencies, strengthening its supply chain, expanding branded sales, leveraging technology-driven processes, and maintaining financial discipline. These initiatives are expected to further improve operational performance, strengthen profitability, and support sustainable long-term value creation for all stakeholders.

Food Safety & Quality

Quality, food safety, and product integrity remain central to Sarveshwar Foods Limiteds operations and business philosophy. The Company follows stringent quality control measures across the entire value chain, including sourcing, procurement, processing, packaging, storage, and distribution, to ensure that its products consistently meet the highest standards of quality, safety, and reliability.

The Company is committed to maintaining excellence in food safety through robust quality management systems, continuous process monitoring, testing protocols, and adherence to applicable food safety regulations and industry standards. The Companys integrated business model enables greater control over sourcing, processing, and traceability, thereby ensuring consistency and transparency across its product portfolio.

Modern manufacturing infrastructure, advanced processing technologies, laboratory testing, quality inspections, and systematic monitoring processes support the Companys commitment to delivering safe, authentic, and high-quality food products to consumers across domestic and international markets.

The Company continues to strengthen its food safety framework through continuous improvement initiatives, technology adoption, employee awareness, and adoption of globally accepted best practices. These efforts reinforce consumer trust, enhance brand value, and support the Companys long-term growth objectives.

Digital Transformation

Digital transformation continues to be an important enabler of operational excellence, business agility, and sustainable growth at Sarveshwar Foods Limited. The Company continues to leverage technology across various business functions to enhance efficiency, improve decision-making capabilities, strengthen operational visibility, and create better stakeholder experiences.

The Company is progressively integrating digital solutions across key areas including procurement, manufacturing, inventory management, supply chain, sales, finance, and customer engagement. Technology- enabled processes support improved planning, greater transparency, enhanced traceability, and better utilisation of resources across the value chain.

The growing adoption of digital platforms, e- commerce channels, data-driven insights, and automation initiatives is enabling the Company to respond effectively to evolving market dynamics and changing consumer preferences. Digital tools also support stronger customer connect, wider market reach, and improved operational responsiveness.

Going forward, the Company remains committed to strengthening its digital capabilities by adopting innovative technologies, improving process automation, and leveraging data-driven decision-making to enhance competitiveness and create longterm value for stakeholders

Sustainability & ESG

Sustainability remains an integral part of Sarveshwar Foods Limiteds long-term business strategy and reflects the Companys commitment towards responsible growth. The Company believes that sustainable business practices are essential for creating enduring value for all stakeholders while contributing positively to the environment, society, and agricultural ecosystem.

The Companys sustainability approach focuses on responsible sourcing, efficient resource utilisation, environmental stewardship, farmer empowerment, employee well-being, ethical business practices, and strong corporate governance. Through its engagement with farmers and Farmer Producer Organisations (FPOs), the Company continues to support sustainable agricultural practices, improve productivity, and strengthen rural livelihoods.

The Company remains committed to enhancing operational efficiency through responsible resource management, adoption of modern technologies, reduction of environmental impact, and continuous improvement in manufacturing and supply chain processes. Its focus on quality, food safety, traceability, and sustainable sourcing strengthens ^customer confidence and supports long-term business resilience.

Strong corporate governance, transparency, regulatory compliance, and stakeholder accountability form the foundation of the Companys ESG framework. The Company continues to align its sustainability initiatives with evolving stakeholder expectations and applicable regulatory requirements while creating shared value for customers, farmers, employees, shareholders, business partners, and communities.

Innovation & Research

Innovation continues to be a key driver of Sarveshwar Foods Limiteds growth strategy. The Company remains focused on developing innovative products, improving operational processes, enhancing packaging solutions, and adopting advanced technologies to meet evolving consumer expectations and strengthen its market position.

The Companys focus on product diversification, premiumisation, and value-added offerings enables it to address emerging consumer trends, including increasing demand for healthy, organic, convenient, and high-quality food products. Continuous improvement in processing capabilities, quality systems, and supply chain practices supports the Companys ability to deliver differentiated products across domestic and international markets.

The Company continues to explore opportunities for innovation across its product portfolio, manufacturing processes, and customer engagement initiatives. By combining market insights, technology adoption, and operational expertise, the Company aims to enhance competitiveness and create sustainable value for all stakeholders.

HUMAN RESOURCES

Human resources continue to remain a key pillar of Sarveshwar Foods Limiteds growth and success. The Company recognises that a skilled, motivated, and engaged workforce is essential for achieving operational excellence, driving innovation, and supporting sustainable business growth.

The Company focuses on building a performance-driven culture through employee development, continuous learning, capability enhancement, and effective engagement practices. Employees across functions are encouraged to contribute towards operational improvement, customer focus, and achievement of organisational objectives.

The Company remains committed to providing a safe, inclusive, and professional work environment that promotes collaboration, ethical conduct, and employee well-being. Regular training, skill development initiatives, and knowledge-sharing practices enable employees to enhance their capabilities and adapt to evolving business requirements.

The Company continues to invest in strengthening its human capital by attracting, developing, and retaining talent while fostering a culture of accountability, innovation, and continuous improvement.

As at March 31, 2026, the Company had 32 employees on its rolls. During the year under review, the Company continued to focus on strengthening its workforce in line with its operational and business requirements.

Disclosure of Accounting Treatment

The financial statements have been prepared in accordance with the applicable Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Companies Act, 2013, read with the relevant rules thereunder. No accounting treatment different from that prescribed under the applicable Accounting Standards has been followed.

Cautionary Statement

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations, plans, or predictions may constitute forwardlooking statements within the meaning of applicable securities laws and regulations. These statements are based on the Companys current expectations, assumptions, and available information.

Actual results may differ materially from those expressed or implied due to various factors, including changes in economic conditions, market dynamics, government policies, regulatory developments, climatic conditions, raw material availability, foreign exchange fluctuations, competition, supply chain disruptions, and other risks beyond the Companys control.

The Company does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Readers are advised to exercise their own judgement and consider the uncertainties and risks associated with such statements.

Details of Significant Changes in Key Financial Ratios

During FY 2025-26, the Companys Current Ratio improved significantly by 44%, rising from 1.66 as at 31 March 2025 to 2.40 as at 31 March 2026. The increase is attributable to Strengthening of Current Assets as increase in receivables, reflecting better working capital availability. and Reduction in Current Liabilities as Repayment of shortterm borrowings, Lower trade payables due to favourable credit terms or efficient settlement of dues.

The Debt-Equity Ratio decreased by 59% , from 0.68 as at 31 March 2025 to 0.28 as at 31 March 2026. The decrease was mainly due to reduction in borrowings and strengthening of the Companys net worth through an increase in shareholders equity, resulting in lower financial leverage.

The Return on Net Worth declined from 3.77% in FY 2025 to 2.86% in FY 2026, representing a decrease of 24.10% . This decline is primarily attributable to the significant increase in the Companys net worth resulting from the increase in share capital and retention of earnings during the year. While the Company recorded growth in profits, the increase in net worth was proportionately higher, leading to a lower Return on Net Worth ratio compared to the previous financial year.

No significant changes (i.e., change of 25% or more compared to the previous financial year) were observed in the remaining key financial ratios.