Shreeji Global FMCG Ltd Management Discussions

For the Financial Year ended 31st March, 2026

Certain statements in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates, expectations and predictions may constitute "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed or implied in such statements, due to various risks and uncertainties, including but not limited to changes in government regulations, tax regimes, agri-commodity price volatility, economic and political conditions in India and abroad, and other factors beyond the control of the Company. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

(a) Industry Structure and Developments

The Company is engaged in the manufacturing, processing and marketing of Fast-Moving Consumer Goods ("FMCG") products in the agro/food segment, comprising spices (whole and ground), seeds and oilseeds, grains and pulses, and wheat flour (Atta), sold under its own brand "SHETHJI" as well as on a white-label/private-label basis for institutional and corporate clients. The Company operates two strategically located manufacturing and processing facilities at Rajkot and Morbi in the State of Gujarat, which is one of Indias leading agro-commodity trading and processing hubs.

Global Spice Market Overview:

The global spices and seasonings market is estimated at approximately USD 29-31 billion in Calendar Year 2025-26 and is projected to grow at a compound annual growth rate (CAGR) in the range of approximately 5.5%-6.9%, potentially reaching approximately USD 45-51 billion over the next decade, according to various industry research estimates. Growth in the global market continues to be driven by expanding culinary diversity and cross-cuisine adoption, rising demand for natural, organic and clean-label ingredients, growth of the global packaged and processed food industry, increasing international spice trade, and rising health and wellness consciousness among consumers, given the recognized antioxidant, anti-inflammatory and functional/nutraceutical properties of several spices. Asia-Pacific continues to be the largest regional market by both production and consumption, while North America and Europe remain significant and comparatively fast-growing markets on account of rising demand for authentic ethnic and Indian cuisine.

Indian Spice Market – Production and Domestic Demand:

India continues to be the worlds largest producer, consumer and exporter of spices, growing more than 75 varieties of spices across diverse agro-climatic zones and accounting for a significant share of global spice production. As per the Spices Board of India Annual Report, Indias total spice production is estimated at approximately 12 million metric tonnes annually (11.99 million metric tonnes in FY 2024-25, as compared to 12.48 million metric tonnes in FY 2023-24), with chilli, cumin, turmeric, ginger and coriander together constituting the bulk of the production base. Leading spice-producing states include Rajasthan, Gujarat, Madhya Pradesh, Andhra Pradesh, Telangana, Kerala and Karnataka, among others, with Gujarat being a particularly significant producer and processing hub for cumin, fennel, sesame and other key spices sourced by the Company.

Various industry research reports estimate the domestic Indian spices market at a value in the broad range of approximately INR 95,000 crore to INR 2,22,000 crore currently (depending on the scope and methodology of the study, including whether allied categories, blended masalas, food-service consumption and export-linked value are included), with a consistent consensus that the market is set to grow at a healthy CAGR of approximately 6%-10% over the coming decade. This growth is underpinned by rising urbanisation, growing health-consciousness, expansion of organised/quick-commerce retail and food-service channels, and a continuing structural shift in consumer preference from loose, unbranded spices towards hygienically packaged, quality-assured and traceable branded products – a trend directly relevant to the Companys own "SHETHJI" branded product strategy.

Indias Spice Exports (Spices Board of India Data):

India accounts for a dominant share of global spice trade, with the countrys spice exports having reached an all-time high of 17.99 lakh tonnes valued at Rs39,994.48 crore (US$4,722.65 million) in FY 2024-25. During FY 2025-26, India exported 17.34 lakh tonnes of spices and spice products valued at Rs39,140.11 crore (US$4,430.90 million), reflecting a decline of approximately 4% in volume and approximately 2% (in rupee terms)/6% (in dollar terms) in value as compared to the record levels of the previous year, though remaining well above historical levels over the preceding five-year period (spice exports having grown by approximately 88% in volume and 97% in value between FY 2013-14 and FY 2024-25). The principal contributors to Indias spice export basket by value in FY 2025-26 were Chilli (27%), Cumin (12%), Spice Oils & Oleoresins (12%), Small Cardamom (9%), Mint Products (8%), Turmeric (7%), Curry Powder/Paste (6%), Ginger and Pepper (3% each) and Coriander (2%), together accounting for more than 90% of total spice export earnings, with the Middle East, USA, China and the European Union continuing to be among the leading destination markets.

The Government of India, through the Spices Board, continues to support the sector through various initiatives, including the "SPICED" (Sustainability in Spice Sector through Progressive, Innovative and Collaborative Interventions for Export Development) scheme launched for FY 2025-26 to fund farm-level productivity enhancement, technology adoption, quality upgradation to meet international food-safety standards and market promotion for Indian spice brands abroad, along with a network of Spices Parks across major spice-growing states (including one located at Mehsana, Gujarat) that provide shared infrastructure for cleaning, sorting, grading, grinding, oil extraction and packaging to growers, processors and exporters.

Grains, Pulses and Wheat Flour (Atta) Segment:

In addition to spices, the Companys product basket includes grains, pulses and wheat flour (Atta), which form part of Indias large staples and food-grains processing industry. This segment continues to benefit from steady domestic consumption, government procurement and food-security programmes, and a gradual but sustained shift towards branded, quality-assured and hygienically packaged atta and pulses in place of loose/unbranded commodities traditionally sold through the unorganized trade, mirroring the broader branded-shift trend seen in the spices category.

Gujarat as a Processing Hub and the Companys Positioning:

Gujarat, where the Companys manufacturing and processing facilities at Rajkot and Morbi are located, is among Indias leading states for spice, grain and pulse cultivation, trading and processing, benefiting from proximity to key agri-producing regions (including cumin, fennel and sesame growing belts), well-established mandis/APMC infrastructure, and access to Gujarats ports for export logistics. The Companys positioning within this ecosystem – combined with its listing on the NSE Emerge (SME) platform in November 2025 and consequent access to growth capital – provides it with a platform to participate both in the domestic branded-shift opportunity described above and in Indias continuing leadership in global spice and agro-commodity exports.

Note: The industry and market-size estimates referred to above are based on publicly available data published by the Spices Board of India and third-party industry/market research reports, and have been reproduced for general informational and contextual purposes. Given differences in scope, definitions and methodology adopted by different research agencies, such estimates may vary and should not be construed as verified or endorsed data of the Company; readers are encouraged to refer to the original sources for further detail.

The Company listed its equity shares on the NSE Emerge (SME) platform in November 2025, pursuant to an initial public offering of 68,00,000 equity shares of face value Rs10 each at a price of Rs125 per equity share, aggregating to approximately Rs85 crore. The proceeds are being utilised, inter alia, towards capital expenditure for factory premises, plant, machinery and cold storage facilities, internal solar power generation for captive consumption, working capital requirements, and general corporate purposes, thereby strengthening the Companys manufacturing capacity and balance sheet during the year under review.

(b) Opportunities and Threats

Opportunities:

- Growing shift of Indian consumers from unbranded/loose agro-food products to branded, hygienically packaged products, offering headroom for brand-led growth under the “SHETHJI” brand.

- Flexible packaging formats ranging from 20 grams to 40 kilograms, enabling the Company to cater simultaneously to individual retail consumers, small businesses/kirana trade, and large B2B/institutional corporate buyers.

- Expansion of the Companys own manufacturing and cold-storage infrastructure at Rajkot and Morbi, including captive solar power generation, is expected to improve operating efficiency, reduce power costs and support scale-up of volumes.

- Increasing export demand for Indian spices, grains and processed agro-products, supported by the Companys existing export sales realisations (Sales Export and Sales-Export (GST) together forming a part of total revenue during the year).

- Access to growth capital following the listing of the Companys equity shares on NSE Emerge (SME) in November 2025, providing enhanced financial flexibility for capacity expansion, working capital and strategic initiatives.

- Potential to widen the Companys Direct-to-Consumer (D2C) presence alongside its existing wholesale/B2B distribution network.

Threats:

- High dependence on agricultural commodities exposes the Company to price volatility linked to crop output, weather conditions, monsoon patterns and global commodity cycles, which can affect input costs and margins.

- Intense competition from both organised branded players and a large number of unorganised/regional players in the spices, grains and pulses segment.

- Regulatory and food-safety compliance requirements (including FSSAI norms), and evolving export regulations, packaging and labelling requirements in domestic and overseas markets.

- Working capital intensive nature of the business, given the seasonal nature of agri-commodity procurement, which requires the Company to carry significant inventory and extend credit to trade customers.

- Foreign exchange fluctuation risk on export sales and import of certain raw materials/packing materials.

(c) Segment-wise or Product-wise Performance

The Company operates in a single reportable business segment, namely "Manufacturing and Trading of FMCG/Agro-food Products", comprising spices (whole and ground), seeds and oilseeds, grains and pulses, and wheat flour (Atta), sold under the Companys own brand "SHETHJI" as well as through white-label arrangements. Accordingly, no separate segment-wise financial results are presented. As the audited financial statements do not provide a product-wise break-up of sales revenue, product-wise performance has been assessed with reference to the closing inventory value of each major product/commodity category at year-end (Note 3.5 to the financial statements), which is indicative of the relative scale of, and year-on-year movement in, the Companys principal product categories.

Revenue from operations increased from Rs648.92 crore in FY 2024-25 to Rs766.40 crore in FY 2025-26, a growth of approximately 18.10%, driven by higher volumes across the Companys key product categories, along with continued demand from both the domestic (taxable and tax-free) sales channels and export markets (direct exports and GST-paid exports). The performance of the Companys principal products, based on closing inventory levels, is set out below:

d ALIGN=RIGHT>2.36

Principal Product	Closing Stock FY 2025-26 (Rs cr)	Closing Stock FY 2024-25 (Rs cr)	% Change
Channa (Chickpeas)	40.60	8.99	+351.89 %
Coriander	26.50	10.90	+143.05 %
Wheat	11.10	8.03	+38.22 %
Black Pepper	6.03	6.07	(0.76) %
Chilli	3.58	0.96	+271.69 %
Cumin Seed (Jeera)	0.70	+235.97%
Soyabin	1.05	1.88	(44.13) %
Fennel Seed	0.96	1.40	(31.69) %
Cloves (Laung)	0.86	0.90	(3.66) %
Other products (net)	5.55	8.68	(36.12) %
Total Inventory	98.59	48.51	+103.22 %

Channa (chickpeas) and Coriander together accounted for approximately 68.1% of the Companys closing inventory value as at 31st March, 2026 (as compared to approximately 41.0% as at 31st March, 2025), reflecting a significant scale-up in these two categories, aided by the working capital raised through the Companys IPO in November 2025. Wheat, Chilli and Cumin also registered strong year-on-year growth in closing stock, reflecting increased business volumes and strategic stock build-up in these categories, while Black Pepper and Cloves remained broadly stable. Fennel Seed and Soyabin registered a decline in closing stock, reflecting either reduced stock-holding at year-end or a comparatively higher rate of liquidation of these categories during the year, and Sesame Seeds, which formed a material part of closing inventory in FY 2024-25 (Rs3.30 crore), were almost fully liquidated by the end of FY 2025-26.

Sales realisation continues to be derived predominantly from domestic sales (taxable and tax-free categories together constituting the substantial majority of revenue), with exports (Sales Export and Sales-Export (GST)) contributing the balance, reflecting the Companys dual focus on the domestic branded/institutional trade and export markets.

(d) Outlook

Having strengthened its capital base through the NSE Emerge (SME) listing in November 2025, the Company intends to deploy the IPO proceeds towards augmenting its manufacturing and cold-storage capacity, captive solar power infrastructure, and working capital, with a view to supporting continued volume growth across its spices, grains, pulses and Atta product categories. The Company will continue to focus on strengthening its "SHETHJI" brand in the domestic market, deepening its B2B/institutional and white-label relationships, and selectively growing its export and Direct-to-Consumer (D2C) presence. While the agro-commodity business remains inherently subject to seasonal and price-cycle variations, the Board and Management believe that the Companys expanded manufacturing infrastructure, diversified product basket and strengthened balance sheet position it to pursue sustainable growth over the medium term, subject to the risks and uncertainties set out elsewhere in this Report.

(e) Risks and Concerns

- Commodity price risk: Fluctuations in prices of agricultural raw materials on account of crop yield, monsoon and global demand-supply conditions may impact procurement cost and margins.

- Working capital and credit risk: The Companys trade receivables increased from Rs51.47 crore (FY 2024-25) to Rs83.58 crore (FY 2025-26), and inventory increased from Rs48.51 crore to Rs98.59 crore over the same period, reflecting the working-capital-intensive nature of the business and the consequent exposure to collection and inventory-holding risk.

- Concentration risk: A significant proportion of revenue is derived from a limited product basket (spices, grains, pulses and Atta) and the Companys operations are concentrated in two manufacturing locations in Gujarat, exposing it to geographic and product concentration risk.

- Regulatory risk: Changes in food safety regulations (FSSAI), GST rates on agro-food products, export policy (including duty drawback and incentive schemes) and other statutory requirements could affect the Companys cost structure and competitiveness.

- Foreign exchange risk: Export sales and any import of raw/packing materials expose the Company to currency fluctuation risk, as reflected in the foreign exchange gain/loss recognised during the year.

- Interest rate and finance cost risk: The Company continues to utilise working capital borrowings (cash credit/overdraft facilities) to fund its operations, exposing it to interest rate risk, although the reliance on borrowings has reduced following the equity infusion during the year.

(f) Internal Control Systems and their Adequacy

The Company has in place internal control systems commensurate with the size, scale and nature of its operations, designed to ensure the orderly and efficient conduct of business, safeguarding of assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records, and timely preparation of reliable financial information. The Audit Committee of the Board periodically reviews the adequacy and effectiveness of the internal control systems, including internal financial controls, and the statutory auditors, as part of their audit, review the internal financial controls over financial reporting to the extent required under the Companies Act, 2013. The Company continues to strengthen its internal control framework, including in the areas of inventory management, credit control and treasury operations, commensurate with the increased scale of operations following the listing of its equity shares.

(g) Discussion on Financial Performance with respect to Operational Performance

The Company recorded Revenue from Operations of Rs766.40 crore for FY 2025-26 as against Rs648.92 crore for FY 2024-25, representing a growth of approximately 18.10%, along with Other Income of Rs3.36 crore (FY 2024-25: Rs3.35 crore), taking Total Income to Rs769.76 crore (FY 2024-25: Rs652.27 crore).

Profit Before Tax increased to Rs26.91 crore in FY 2025-26 from Rs16.32 crore in FY 2024-25, a growth of approximately 64.92%, while Profit After Tax increased to Rs19.92 crore from Rs12.23 crore, a growth of approximately 62.84%. Basic and Diluted Earnings Per Share improved to Rs8.75 for FY 2025-26 as against Rs7.67 for FY 2024-25.

This improvement in profitability was achieved despite a corresponding increase in Total Expenses to Rs742.85 crore (FY 2024-25: Rs635.95 crore), reflecting higher Cost of Materials Consumed and Other Expenses commensurate with the growth in volumes, as well as one-time IPO-related expenses of Rs1.86 crore incurred during the year in connection with the listing of the Companys equity shares.

On the Balance Sheet, Total Shareholders Funds increased substantially from Rs29.64 crore as at 31st March, 2025 to Rs132.03 crore as at 31st March, 2026, primarily on account of the equity infusion of Rs85 crore (before issue expenses) pursuant to the Companys IPO, which included fresh issue of 68,00,000 equity shares at a premium of Rs115 per share, resulting in a Securities Premium balance of Rs75.67 crore as at year-end (net of utilisation of Rs2.53 crore towards share issue expenses). Total Borrowings (long-term and short-term) reduced marginally in absolute terms from Rs30.45 crore to Rs45.47 crore in absolute value but declined significantly relative to the enlarged equity base, resulting in a materially stronger Debt-Equity position, as elaborated in paragraph (i) below.

Total Assets of the Company grew from Rs117.09 crore to Rs245.45 crore, an increase of approximately 109.63%, reflecting the deployment of IPO proceeds into fixed assets (including solar power infrastructure), current investments, inventory and trade receivables to support the higher scale of operations.

(h) Material Developments in Human Resources / Industrial Relations Front

The Company considers its human resources to be a key contributor to its operations and continues to focus on strengthening its workforce commensurate with the growth in its manufacturing and business operations. Salary to Staff increased from Rs1.05 crore in FY 2024-25 to Rs1.49 crore in FY 2025-26, reflecting an increase in employee strength and compensation in line with the Companys growth and the increased compliance/governance requirements associated with its status as a listed entity. The Company maintained cordial and harmonious industrial relations with its employees throughout the year under review, and no material industrial relations issues were reported during FY 2025-26.

(i) Details of Significant Changes in Key Financial Ratios

In accordance with Schedule V, Part B, Clause 1(i) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in the key financial ratios, along with detailed explanations therefor, are given below:

Key Financial Ratio	FY 2025-26	FY 2024-25	% Change	Reason for Change (= 25%)
Debtors Turnover Ratio (times)	9.17	12.61	(27.27) %	Trade receivables grew 62.36% (Rs51.47 cr to Rs83.58 cr), outpacing the 18.10% growth in revenue, on account of extended credit terms to B2B/institutional customers to support higher sales volumes.
Inventory Turnover Ratio (times)	10.42	12.37	(15.76) %
Interest Coverage Ratio (times)	8.66	6.56	31.99 %	Profitability (PBT) grew 64.92%, significantly outpacing the 19.73% increase in finance costs, improving the Companys ability to service interest obligations.
Current Ratio (times)	1.87	1.31	42.58 %	Current assets grew 89.61% (largely current investments, cash & bank balances and inventory funded through IPO proceeds) against a comparatively lower 32.98% growth in current liabilities, strengthening short-term liquidity.
Debt-Equity Ratio (times)	0.86	2.95	(66.48) %	Shareholders funds increased 345.44% following the equity infusion of Rs85 crore (before expenses) pursuant to the Companys IPO in November 2025, while total borrowings grew only 49.32% in absolute terms, substantially strengthening the capital structure.
Operating Profit Margin (%)	3.53%	2.45%	44.09 %	Operating profit grew 70.18% against 18.10% revenue growth, reflecting better absorption of fixed overheads and operating leverage on higher volumes.
Net Profit Margin (%)	2.60%	1.89%	37.87 %	Net profit grew 62.84%, significantly outpacing the 18.10% revenue growth, driven by operating leverage, partly offset by one-time IPO-related expenses of Rs1.86 crore during the year.

(j) Details of Change in Return on Net Worth

Return on Net Worth (RoNW), computed as Profit After Tax divided by Total Shareholders Funds as at the year-end, decreased from 41.27% in FY 2024-25 to 15.09% in FY 2025-26, a decline of approximately 63.44%.

This decline in RoNW is primarily attributable to the substantial increase in the Companys net worth/shareholders funds (up 345.44%, from Rs29.64 crore to Rs132.03 crore) following the equity infusion of Rs85 crore (before issue expenses) pursuant to the Companys IPO and listing on NSE Emerge (SME) in November 2025. While the enlarged equity base has diluted the RoNW ratio in the short term, absolute Profit After Tax nonetheless grew by 62.84% during the year (from Rs12.23 crore to Rs19.92 crore), and the Companys Management believes the strengthened net worth and reduced reliance on debt position the Company favourably for sustainable and profitable growth going forward.

For and on behalf of the Board of Directors of

SHREEJI GLOBAL FMCG LIMITED

JITENDRA KAKKAD

Managing Director

DIN: 08020037

VIVEK KAKKADS

Whole Time Director

DIN: 08020044

Place: Rajkot

Date: 01/09/2026