The statements in the Management Discussion and Analysis Report describe the Companys objectives, projections, expectations, estimates or forecasts which may be forward- looking statements within the meaning of the applicable laws and regulations. Actual results may differ substantially or materially from those expressed or implied therein due to risks and uncertainties. Important factors that could influence the Companys operations, inter alia, include global and domestic demand and supply conditions affecting selling prices of finished goods, input availability and prices, changes in government regulations, tax laws, economic, political developments within the country and other factors such as litigations and industrial relations.
Sheetal Cool Products Limited is a diversified food products company with a strong presence across major states of India, including Gujarat, Maharashtra, Madhya Pradesh, Rajasthan, Jammu & Kashmir, Punjab, Himachal Pradesh, Chhattisgarh, Telangana, West Bengal, Odisha, Uttar Pradesh and Tamil Nadu. The Company has also established a growing international presence across various markets, including the USA, Japan, Australia, Hong Kong, UAE (Dubai), Saudi Arabia, Bahrain, Kuwait, Qatar, Congo, South Korea, Mauritius and Bhutan.
The Company is committed to maintaining high standards of quality, food safety and manufacturing practices. It is certified under globally recognised standards including BRCGS (Brand Reputation Compliance for Global Standards), FSMA (Food Safety Modernization Act) and EIC (Export Inspection Council), along with FSSAI, ISO 22000:2018, ISO 9001:2015 and 1002:2018.
The Companys diversified product portfolio and established distribution network enable it to cater to a wide range of consumer preferences across multiple food categories. The Companys focus on quality, innovation, product diversification and market expansion continues to support its long- term growth strategy.
The global economy continued to demonstrate resilience during FY 2025- 26 despite geopolitical tensions, trade policy uncertainties, elevated public debt and uneven recovery across major economies. According to the International Monetary Fund (IMF), global growth was projected at around 3.3% for 2026 in its January 2026 outlook, supported by technology- related investment, fiscal and monetary support, accommodative financial conditions and adaptability of the private sector.
However, the global economic environment continues to remain subject to significant uncertainties. The IMFs April 2026 outlook highlighted renewed risks to global growth arising from geopolitical developments and the possibility of disruption to trade, energy supplies and inflation trends. The IMF subsequently projected global growth at approximately 3.0% for 2026 and 3.4% for 2027 in July 2026.
Against this backdrop, businesses globally continue to focus on operational efficiency, supply- chain resilience, cost optimisation, technological adoption and product innovation. These factors remain important for companies operating in the food and consumer products sector.
The Indian economy continued to demonstrate resilience and strong growth momentum during FY 2025- 26. According to the Economic Survey 2025- 26, Indias real Gross National Income grew by 7.3% during 2025- 26, based on advance estimates.
Indias economic growth has continued to be supported by domestic consumption, investment activity, infrastructure development, improving rural activity and the continued expansion of the services sector. The Governments focus on infrastructure, manufacturing, agriculture, digitalisation and improving the ease of doing business is expected to support economic activity over the medium to long term.
The IMF, in its January 2026 outlook, estimated Indias growth at 7.3% for 2025 and projected growth of 6.4% for 2026, reflecting continued strength in domestic consumption and investment, while acknowledging external and global economic headwinds.
The Indian food and dairy industry is expected to benefit from rising disposable incomes, urbanisation, changing lifestyles, increasing preference for packaged and convenience foods, and greater consumer awareness regarding quality and nutrition.
The global dairy industry continues to witness steady growth, supported by increasing urbanisation, rising health and nutrition awareness, changing dietary preferences, technological advancements and growing demand for convenient and value- added dairy products.
According to the latest IMARC Group estimates, the global dairy market reached approximately USD 1,038.6 billion in 2025 and is expected to reach approximately USD 1,545.4 billion by 2034, representing a CAGR of about 4.38% during 2026- 2034. The growth is supported by increasing demand for dairy- based products, ready- to- eat products, dairy- based snacks, innovative products and sustainable packaging solutions.
Consumer preferences are increasingly shifting towards convenient, nutritious and value- added products. Dairy companies are therefore focusing on product innovation, improved packaging, cold- chain infrastructure, efficient distribution networks and expansion into new geographical markets.
The continued development of modern retail, e- commerce and organised food distribution channels is also providing opportunities for dairy and frozen food companies to expand their consumer reach.
India continues to be one of the worlds largest dairy- producing economies, supported by a large consumer base, a substantial livestock population and a well- established dairy ecosystem. The sector is undergoing continuous organized on through investments in milk procurement, processing, cold- chain infrastructure, packaging and organized distribution.
The Government of India continues to support the dairy sector through various programmes aimed at strengthening milk procurement infrastructure, improving productivity, enhancing the quality of milk and dairy products and increasing the participation of organized dairy channels. The Union Budget 2026- 27, for instance, provides continued support for dairy development and strengthening of the milk value chain.
The Indian dairy and food processing industry is expected to benefit from increasing organized on, changing consumption patterns, growth in organized retail and increasing demand for packaged, convenient and hygienic food products.
To balance seasonal demand, minimize off- season impact, and optimally utilize power and manpower, the company has diversified into multiple product segments. This strategic diversification enhanced production efficiency, and a broader consumer base.
The key diversified segments include:
Ice Cream Products : Made from pure milk (not frozen desserts), offering a rich and authentic taste. Product varieties include:
Cups Kulfi Candy & Cones Novelties Cakes & Pastries Family Packs and Party Packs
Namkeen Products : A wide range of products, including wafers, frys, and other savory snacks, known for taste, quality, and hygiene
Milk & Milk Products : Comprising both essential and premium products:
Milk, Buttermilk, and Curd Ghee, Paneer, Butter, and Flavored Milk
Bakery Products : Freshly baked items such as:
Bread, Khari, Rusk, and a range of Cookies
Sweets : Traditional Indian sweets including:
Gulab Jamun, Rasgulla, Mango Ras, Basundi, and Shrikhand
Ready- to- Eat Products: Convenient and delicious frozen food offerings like:
Parathas, Naan, Samosa, Tikki, and assorted Pizzas
Ready- to- Cook Products: Frozen essentials for quick meal preparation:
Green peas, Sweet Corn, Cut Vegetables etc
By offering a wide range of products, the company can tap into diverse consumer preferences and cater to various market segments. This strategy strengthens brand presence across multiple categories, reducing dependency on a single product line. Ultimately, diversification enhances business stability, market competitiveness, and long- term profitability.
The Indian food and dairy industry continue to offer significant growth opportunities owing to increasing urbanisation, rising disposable incomes, changing consumer lifestyles and increasing demand for convenient, hygienic and value- added food products.
The growing working population and changing dietary preferences are expected to support demand for dairy products, ice creams, namkeen, bakery products, sweets and ready- to- eat and ready- to- cook food products.
The Company intends to capitalise on these opportunities through continued product innovation, geographical expansion, strengthening of its distribution network, increasing focus on milk and milk- based products, expansion of its export business and improvement in manufacturing and operational efficiencies.
The Companys focus on quality, competitive pricing, product innovation and customer satisfaction is expected to strengthen its market position. The Company also remains focused on enhancing operational efficiencies and leveraging technology to improve coordination across its business functions.
The Company remains optimistic about the medium- to long- term prospects of the food and dairy industry and believes that its diversified business model, established brand presence and expanding geographical footprint provide a strong foundation for sustainable growth.
The Company operates in a highly competitive industry and faces various challenges, including competition from organised as well as regional and local players, volatility in raw material prices, changes in consumer preferences, climatic conditions and fluctuations in demand.
Weather- related events and seasonal variations may affect the availability and prices of certain agricultural and dairy inputs and may also influence consumer demand, particularly for seasonal products such as ice cream.
The Company continues to address these challenges through product diversification, efficient procurement practices, strengthening of its distribution network, product innovation, cost optimisation and maintaining consistent quality at competitive prices.
Despite these challenges, the Company remains committed to sustainable growth and to strengthening its competitive position across its key product categories.
Segment Reporting as defined in Ind AS 108 is not applicable since the Company operates in only one segment.
Risks and uncertainties are inherent to every business. The Company continuously monitors its operating environment and undertakes appropriate measures to identify, assess and mitigate key business risks.
The Company is exposed to fluctuations in the prices of key raw materials, dairy inputs, agricultural commodities and packaging materials. Changes in commodity prices, supply- demand conditions, climatic factors and vendor pricing may impact production costs and profitability.
The Company operates in a competitive market comprising established national brands as well as regional and local players. Increased competition may result in pricing pressure and may impact market share.
The Company continuously monitors the above risks and takes appropriate measures to mitigate their potential impact. These include strategic procurement and bulk purchasing of key inputs, maintaining adequate inventory levels, diversification of the product portfolio, strengthening the supply chain, continuous product innovation and maintaining consistent product quality at competitive prices.
The Companys diversified product portfolio and expanding geographical presence also help reduce dependence on any single product category or market.
The Company has an adequate system of internal control commensurate with its size, scale and nature of business. The internal control framework provides reasonable assurance regarding the reliability of financial and operational information, compliance with applicable laws and regulations, safeguarding of assets and adherence to the Companys policies and procedures.
The Company has availed the services of an independent professional for conducting Internal Audit, with the objective of providing independent and objective assurance regarding the adequacy and effectiveness of the Companys risk management, internal control and governance processes.
The scope and authority of the Internal Audit function are approved by the Audit Committee. The Internal Auditor reports to the Audit Committee of the Board. The Audit Committee periodically reviews the Internal Audit Reports and provides guidance and recommendations wherever required.
The Audit Committee also considers the views of the Statutory Auditors regarding the adequacy of the Companys internal control systems. The minutes of the Audit Committee meetings are placed before the Board of Directors. The Audit Committee reviews the Companys internal control systems, internal audit observations and legal compliances and recommends appropriate measures to the Board wherever necessary.
The Companys employees continue to be one of its most valuable assets. The Company believes that a capable, motivated and skilled workforce is essential for achieving sustainable growth.
The Company encourages its employees to develop their capabilities through continuous learning, innovation, lateral thinking and exposure to multiple functional areas. The Company continues to foster a professional, meritbased and performance- oriented work environment.
During the year under review, the Companys industrial relations remained cordial with its employees.
As on March 31, 2026, the Company had approximately 750 employees.
During FY 2025- 26, the Company continued to focus on strengthening its domestic and international presence and expanding its product portfolio.
In the domestic market, the Company continued to expand its presence across various states and strengthen its state- wise sales and distribution network. The Company also increased its focus on essential products, particularly milk and milk- based products, which offer significant potential for sustainable growth.
In the Ice Cream and Namkeen segments, the Company continued to introduce new products and implement strategic initiatives aimed at strengthening the product portfolio and improving market penetration.
On the export front, the Company continued to expand its international presence by entering and strengthening its position in various overseas markets. The Companys export business contributed positively to its overall growth during the year.
During the year, the Company installed a 4.9 MW solar power plant. With this installation, the Company is now empowered by two solar and two windmill projects, further strengthening its renewable energy portfolio. This will help the Company optimise its electricity costs and reduce its dependence on conventional sources of power. The increased use of renewable energy is expected to generate long- term cost savings and improve overall operational efficiency. It will also provide greater stability in energy costs and enhance the Companys cost- effectiveness and sustainability.
The Companys financial performance with respect to its operational performance has been discussed in the relevant sections of the Annual Report.
During FY 2025- 26, the Companys Revenue from Operations stood at Rs. 36,600.04 Lakhs, as compared to Rs. 32,130.58 Lakhs in FY 2024- 25. The Company recorded a Profit After Tax of Rs. 1,911.83 Lakhs, as compared to Rs. 1,656.88 Lakhs in the previous financial year.
The following key financial ratios provide an overview of the Companys financial performance:
| Ratios | 2025-2026 | 2024-2025 | Change % | Details of Significant Change |
| Current Ratio (In times) | 2.65 | 1.97 | 34.88% | Note-1 |
| Debt-Equity Ratio (In times) | 0.32 | 0.57 | -44.63% | Note-2 |
| Inventory Turnover Ratio (In times) | 1.89 | 1.79 | 5.94% | |
| Trade receivables turnover ratio | 9.02 | 6.73 | 34.03% | Note-3 |
| Debt Service Coverage Ratio | 4.99 | 2.48 | 101.28% | Note-4 |
| Net Profit Ratio | 5.22% | 5.16% | 1.30% | |
| Trade payables turnover ratio | 9.88 | 10.67 | -7.41% | |
| Return on Equity Ratio | 13.28% | 13.49% | -1.59% | |
| Net capital turnover ratio | 3.16 | 3.35 | -5.88% | |
| Return on Capital employed | 16.18% | 15.30% | 5.73% |
Improvement due to reduction in short- term borrowings. Current assets remained relatively stable, leading to stronger liquidity.
Significant reduction in debt obligations during the year. Equity base remained stable, resulting in healthier leverage position.
Shorter credit period allowed for quicker collections. Revenue growth combined with reduced receivables balance enhanced efficiency.
Higher profitability increased earnings available for debt service. Lower debt servicing requirements (interest + principal repayments) improved coverage.
In the preparation of the financial statements for the financial year under review, no accounting treatment different from that prescribed under the applicable Accounting Standards / Indian Accounting Standards has been followed by the Company.
By Order of the Board of Directors For Sheetal Cool Products Limited
Sd/- Bhupathbai D. Bhuva Chairman & Managing Director [DIN: 06616061]
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