Sheel Biotech Ltd Management Discussions

<dhhead>MANAGEMENT DISCUSSION & ANALYSIS </dhhead>

Global Economic Outlook

The global economy demonstrated resilience during FY 2025-26 despite persistent geopolitical tensions, inflationary pressures, supply chain realignments and fluctuations in commodity prices. According to multilateral institutions, easing inflation, improving investment sentiment and gradual recovery in international trade continued to support global economic growth.

Agriculture, biotechnology and sustainable food systems remained strategic priorities across developed and emerging economies as governments intensified efforts towards ensuring food security, climate resilience and resource-efficient farming. Growing investments in biotechnology, precision agriculture, protected cultivation, greenhouse infrastructure, disease-free planting material and postharvest infrastructure continue to reshape the global horticulture industry.

The global demand for premium horticultural products, high-value fruits, vegetables, floriculture and biotechnology-driven agricultural solutions continues to expand, supported by changing consumer preferences, increasing health awareness and rising demand for sustainable agricultural practices. These long-term structural trends provide significant growth opportunities for integrated biotechnology and horticulture companies.

India continues to remain one of the worlds fastest-growing major economies, supported by strong domestic demand, increasing infrastructure investment, favourable demographics and continued policy reforms.

The Governments sustained focus on agricultural modernization, horticulture development, digital agriculture, food processing, farmer income enhancement and rural infrastructure has strengthened the overall agricultural ecosystem. Various initiatives including Mission for Integrated Development of Horticulture (MIDH), National Horticulture Mission, Agriculture Infrastructure Fund, Organic Farming initiatives, Farmer Producer Organization (FPO) promotion and protected cultivation programmes continue to encourage investments in high-value agriculture.

Indias horticulture sector has emerged as one of the fastest-growing segments of the agricultural economy. Increasing cultivation of fruits, vegetables, medicinal plants and export-oriented crops, coupled with growing demand for disease-free planting material, protected cultivation and precision farming, provides significant opportunities for biotechnology companies.

The premium fruit segment is also witnessing strong momentum. Rising consumer awareness regarding nutrition and healthy lifestyles, expansion of organised retail, quick-commerce platforms and premium food service channels are driving demand for berries and other high-value horticultural produce. The Company believes that these structural trends present attractive long-term opportunities for integrated horticulture and biotechnology businesses.

Sheel Biotech Limited operates as an integrated biotechnology and horticulture company engaged in tissue culture plant production, floriculture, horticulture, greenhouse and polyhouse solutions, organic certification, planting & landscaping, integrated pack house infrastructure, Farmer Producer Organization (FPO) development and skill development initiatives. The Company has established itself as a diversified agri-biotechnology enterprise serving government departments, institutional customers, corporate clients and farmers across India.

During FY 2025-26, the Company further strengthened its long-term growth strategy by expanding its focus towards the premium berry segment comprising blueberries, strawberries and raspberries. This strategic initiative builds upon the Companys existing strengths in tissue culture, protected cultivation, greenhouse infrastructure, post-harvest management and integrated horticulture solutions.

The Indian blueberry industry is currently at an early stage of development with limited domestic production and increasing reliance on imports. Rising health consciousness, premium food consumption, organised retail expansion and growing demand for high-value fruits are expected to create significant opportunities for domestic cultivation of premium berries. The Company has initiated strategic collaborations for premium planting material and intends to leverage its integrated business model to participate in this emerging segment.

• Increasing adoption of tissue culture plants for commercial cultivation.

• Rising investments in protected cultivation and greenhouse infrastructure.

• Growing demand for high-quality horticulture planting material.

• Expansion of integrated agricultural infrastructure projects.

• Government support for horticulture expansion and Farmer Producer Organizations.

• Increasing focus on climate-resilient and sustainable agriculture.

• Rising demand for premium fruits and high-value horticulture crops.

• Increasing investments in post-harvest infrastructure, cold chain and packhouse facilities.

• Growing adoption of biotechnology to enhance agricultural productivity.

The Company believes its diversified business model, technical expertise and integrated service capabilities position it favourably to capitalize on these long-term industry opportunities.

SWOT Analysis

The Companys diversified operations, experienced management and continuous focus on innovation provide a strong foundation for sustainable long-term growth.

Financial Highlights

*EBITDA calculated before finance cost, depreciation and tax.

The Company delivered another year of steady financial performance during FY 2025-26. Revenue from Operations increased by 8.13% to TI1,002.24 Lakhs, supported by continued growth across biotechnology, horticulture and infrastructure projects.

Profit Before Tax increased by 9.30% to TI,401.59 Lakhs, while Profit After Tax grew by 9.31% to T1,175.64 Lakhs, reflecting improved operational efficiency and disciplined cost management.

Net Worth increased significantly by over 51% to T12,699.17 Lakhs, strengthening the Companys financial position and providing a robust platform for future expansion.

Key Financial Ratios

FY 2025-26 marked another year of steady operational and financial progress for the Company. Revenue and profitability improved while the balance sheet was significantly strengthened through enhanced net worth and reduced leverage.

The Companys continued investment in biotechnology, horticulture infrastructure and strategic diversification into premium horticulture reflects its long-term vision of building an integrated agri-biotechnology platform. With a diversified business model, experienced management team, sound financial position and continued focus on innovation, the Company is well positioned to pursue sustainable growth and create long-term value for its shareholders.

This document contains forward-looking statements based on the Company’s current expectations and assumptions. Such statements are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially due to economic conditions, regulatory changes, tax policies, and other factors. The Company does not undertake to revise any forward- looking statement that may be made from time to time by or on behalf of the Company.