Shri Gang Industries & Allied Products Ltd Management Discussions

GLOBAL AND INDIAN ECONOMIC OUTLOOK Global Economic Scenario

The global economy remained resilient during FY 2025-26 despite persistent geopolitical tensions, evolving trade policies, tariff-related uncertainties and uneven recovery across major economies. Global growth remained steady, supported by easing inflation, improving financial conditions, technological investment and resilience in private consumption and business activity. The IMF estimated global growth at around 3.3% in 2025, with growth expected to remain broadly stable in 2026.

However, heightened trade tensions, policy uncertainty, geopolitical developments and structural challenges continued to pose risks to global economic activity. Advanced economies witnessed relatively moderate growth, while emerging and developing economies remained important contributors to global growth.

India continued to remain one of the fastest-growing major economies during FY 2025-26, supported by strong domestic consumption, public investment, improving manufacturing and services activity, benign inflation and continued structural reforms. The World Bank reported that Indias economy grew by 7.6% in FY 2025-26, reflecting the resilience of domestic demand despite heightened global trade tensions.

Going forward, the global economic outlook will remain dependent on the evolution of trade relations, geopolitical developments, inflation and monetary policy. Continued structural reforms, investment in infrastructure and technology, prudent fiscal management and diversification of trade and supply chains will remain important for sustaining economic growth and resilience.

Indian Economy

The Indian economy demonstrated resilience and sustained momentum during FY 2025-26, supported by robust domestic demand, continued public investment, improving infrastructure and strong performance across the services and manufacturing sectors. The economy remained relatively insulated from global uncertainties, supported by sound macroeconomic fundamentals and a strengthening domestic growth base.

Government-led capital expenditure continued to play a key role in supporting economic activity, infrastructure development and employment generation. The sustained focus on asset creation, connectivity and infrastructure has strengthened the foundation for long-term growth and enhanced Indias competitiveness.

Inflation remained broadly contained during the year, while fiscal consolidation continued alongside sustained public investment. Indias improving fiscal resilience and credible medium-term consolidation path further strengthened investor confidence and macroeconomic stability.

The services sector continued to remain a major growth driver, while manufacturing, digitalisation, technological adoption and formalisation of the economy provided additional impetus to economic activity. Continued investments in digital infrastructure, innovation and emerging technologies are expected to support productivity and create new avenues for sustainable growth.

Going forward, Indias growth outlook remains positive, supported by resilient domestic consumption, infrastructure-led development, structural reforms and increasing integration with global value chains. Nevertheless, external risks arising from geopolitical developments, trade fragmentation, commodity price volatility and global financial conditions remain important considerations.

Overall, Indias strong domestic fundamentals, policy support and ongoing structural transformation provide a favourable foundation for sustained, broad-based and inclusive economic growth.

Industry Overview

Global Alcoholic Beverage Industry

The global alcoholic beverage industry remained resilient during FY 2025-26, while continuing to undergo structural changes driven by evolving consumer preferences, premiumisation, regulatory developments and changing consumption patterns. Emerging markets, particularly India, continued to offer attractive growth opportunities, supported by rising disposable incomes, urbanisation and a growing preference for premium and differentiated products.

Premiumisation remained a key industry trend, with consumers increasingly seeking higher-quality, distinctive and experiential products. Whisky and other premium spirits continued to witness strong interest in several emerging markets, while brands focused on innovation, product differentiation and expansion into high-growth markets to navigate changing economic and regulatory conditions.

At the same time, changing lifestyles and greater health consciousness are influencing consumption choices, resulting in increasing interest in low-alcohol, no-alcohol and innovative beverage offerings. Growth in modern retail, digital platforms and hospitality and travel sectors is further supporting product discovery and market penetration, subject to applicable regulations governing the sale and promotion of alcoholic beverages.

Overall, the global alcoholic beverage industry is expected to remain growth-oriented, with premiumisation, innovation, emerging markets and evolving consumer preferences continuing to shape the industrys medium-term outlook.

Global Beverage Alcohol Market - 2025 Volume Growth

Year-on-year change in total beverage alcohol volume across selected major markets.

India	4.3%
South Africa	4.3%
Mexico	1.8%
Global TBA	-1.9%
China	-1.9%
Brazil	-3.9%
United States	-5.2%

Source: IWSR, preliminary 2025 data covering 22 markets representing approximately 75% of the global beverage alcohol market by volume.

India remained one of the strongest growth markets globally, recording 4% growth in total beverage alcohol volumes in 2025, against a 2% decline in global volumes.

Indian Alcoholic Beverage Industry

The Indian alcoholic beverage industry continued to demonstrate strong growth potential during FY 2025-26, supported by favourable demographics, rapid urbanisation, rising disposable incomes and evolving consumer preferences. India remains an attractive market for alcoholic beverages, with increasing consumer spending and a growing preference for branded, premium and differentiated products.

The spirits segment, in particular, is expected to remain a key contributor to the growth of the Indian alcoholic beverage market. Industry estimates indicate that spirits consumption in India is projected to increase from approximately 3.53 billion litres in 2023 to 4.41 billion litres by 2027, representing a CAGR of around 5.7%. This growth reflects the expanding consumer base, increasing urbanisation, improving affordability and continued premiumisation within the category.

Premiumisation continues to be one of the most significant trends shaping the industry, with consumers increasingly seeking higher-quality spirits, established brands and differentiated consumption experiences. The emergence of a larger young working population, rising disposable incomes and greater exposure to global brands are supporting the shift towards premium and super-premium segments.

The broader beverage alcohol market is also benefiting from the expansion of the hospitality, travel and tourism sectors, growth of modern retail and increasing product awareness. Innovation across product categories, packaging and flavour profiles is enabling companies to address evolving consumer preferences and create new consumption occasions.

The industry, however, continues to operate within a highly regulated environment, with state-specific excise policies, taxation, licensing requirements and restrictions on advertising and distribution influencing market dynamics. Accordingly, regulatory developments and changes in taxation remain important considerations for industry participants.

Overall, the Indian alcoholic beverage industry is well positioned for sustained growth, with spirits consumption, premiumisation, urbanisation and rising consumer spending expected to remain key growth drivers over the medium term.

Indian Spirits Sector - Consumption Growth Outlook

Forecast consumption of spirits in India, based on Euromonitor International data.

2023	3,380
2024	3,750
2025	4,080
2026	4,320
2027	4,530

Source: Euromonitor International Limited 2024, as reported by Agriculture and Agri-Food Canada.

Key Consumer Trends

Premiumisation remained an important trend in the Indian alcoholic beverage industry during FY 2025-26, although consumer behaviour continued to evolve in response to changing economic conditions. Consumers increasingly sought quality, differentiated products and enhanced consumption experiences, particularly in the premium and super-premium spirits segments. India remained one of the strongest growth markets globally, with total beverage alcohol volumes increasing by approximately 4% in 2025, according to IWSR.

Alongside premiumisation, moderation, experimentation, convenience and product innovation continued to influence consumer preferences. Emerging categories such as ready-to-drink beverages and no-alcohol alternatives are gaining consumer interest, while whisky continues to remain a key growth category in India.

Market Composition

The Indian alcoholic beverage market continues to be predominantly domestic, with domestic products accounting for the majority of spirits and beer consumption. At the same time, imported spirits are gaining momentum, supported by increasing consumer interest in international brands and premium products. IWSR estimates that imported spirits volumes in India grew at a CAGR of approximately 16% during 2019-2024 and are projected to grow further in 2025.

Given restrictions governing direct advertising of alcoholic beverages, industry participants continue to focus on permitted brand-building activities, including point-of-sale initiatives, digital engagement, experiential marketing, events, hospitality partnerships and consumer activations. The increasing use of digital and experiential channels is enabling brands to build consumer engagement while operating within the applicable regulatory framework.

Consumer Value Shifts

The Indian market is witnessing a dual consumer trend, with premiumisation continuing at the upper end while consumers across the mass and mid-market segments remain conscious of affordability and value. Companies are therefore focusing on product innovation, attractive packaging, differentiated propositions, accessible price points and varied pack formats to cater to diverse consumer segments.

This combination of premiumisation, value consciousness, innovation and moderation is expected to remain an important feature of the industrys competitive landscape.

Market Size and Growth Outlook

India continues to offer significant long-term growth opportunities for the alcoholic beverage industry. According to IWSR, total beverage alcohol volumes in India grew at a CAGR of approximately 3% between 2019 and 2024, including a 6% increase in 2024. Volumes are projected to grow at approximately 3% CAGR between 2024 and 2034, with India expected to be one of the principal contributors to global beverage alcohol growth over the coming decade.

The spirits segment, particularly whisky, is expected to remain an important growth driver, supported by rising disposable incomes, urbanisation, premiumisation and increasing consumer exposure to international brands.

Export Opportunities and Policy Support

India has significant potential to expand its presence in international alcoholic beverage markets. Growing recognition of Indian whisky and other spirits, together with increasing demand for differentiated products in emerging markets, provides opportunities for Indian manufacturers to develop export-oriented businesses.

Improved market access, participation in international trade events, evolving trade agreements and greater acceptance of Indian-made alcoholic beverages can support the industrys international expansion. For domestic manufacturers, exports also provide an opportunity to diversify markets and strengthen long-term growth prospects.

Regulatory Scenario in the Indian Market

The alcoholic beverage industry operates within a highly regulated framework involving both central and state-level laws. While central regulations govern aspects such as food safety and product standards, state governments play a significant role in regulating manufacture, distribution, licensing, sale and excise taxation of alcoholic beverages.

The industry therefore remains sensitive to changes in state excise policies, taxation, licensing requirements, labelling standards and restrictions on advertising and promotion. Companies operating in the sector are required to maintain robust compliance systems and continuously adapt their business practices to changes in the regulatory environment.

India-UK Free Trade Agreement

A significant development during FY 2025-26 was the conclusion of the India-UK Free Trade Agreement , which provides for a substantial reduction in Indias customs duties on UK-origin whisky and gin. Under the agreement, the applicable tariff on whisky and gin is to be reduced from 150% to 75% upon entry into force and progressively reduced to 40% over the following ten years.

The agreement is expected to improve market access for Scotch whisky and other qualifying UK-origin spirits, support greater consumer choice and contribute to the continued premiumisation of Indias alcoholic beverage market. It may also create opportunities across the wider hospitality and beverage ecosystem, while increasing competitive intensity for domestic industry participants.

Overall, Indias large and growing consumer base, resilient domestic demand, premiumisation, product innovation and increasing integration with global markets provide a favourable long-term outlook for the alcoholic beverage industry. At the same time, regulatory developments, taxation, changing consumer behaviour and global economic conditions will remain important factors influencing the industrys growth trajectory

Market Segmentation

According to the classification in India, the Alcobev sector is structured as follows:

ALCOBEV SECTOR	\u2022 IMFL (Indian Made Foreign Liquor)
	\u2022 IMIL (Indian Made Indian Liquor)
	\u2022 Beer
	\u2022 Wine
	\u2022 Imported alcohol

IMIL- Indian Made Indian Liquor

IMFL -Indian Made Foreign Liquor

Andhra Pradesh, Karnataka, Maharashtra, Telangana, Uttar Pradesh and West Bengal are among the principal consumer states.

The Indian liquor market continued to remain predominantly spirits-led during FY 2025-26. Spirits account for approximately two-thirds of Indias alcoholic beverage consumption, with Indian Made Foreign Liquor (IMFL) and Indian Made Indian Liquor (IMIL)/country liquor constituting the principal segments. While country liquor has a significant volume presence, IMFL commands a substantially higher share in value terms owing to higher realisations and greater brand penetration.

Within the IMFL segment, whisky remains the dominant category, accounting for approximately 64% of volume and around 68% of value, followed by brandy, rum and white spirits such as vodka and gin. The dominance of whisky reflects its strong consumer acceptance, extensive distribution network and availability across mass, popular, premium and super-premium price segments.

Premiumisation continues to reshape the liquor market, with consumers increasingly moving towards premium and higher-value products. At the same time, the mass and popular segments remain important, particularly in markets where affordability and price-value propositions continue to influence purchasing decisions. This creates opportunities across multiple price points for manufacturers with established brands, efficient distribution and strong regional presence.

The market remains highly fragmented and geographically diverse, with consumption patterns varying significantly across states due to differences in taxation, excise policies, licensing requirements and retail structures. The Southern states continue to account for a significant proportion of IMFL consumption, while the Northern and Western markets offer considerable opportunities for premiumisation and brand development.

Looking ahead, the Indian liquor market is expected to remain resilient, supported by rising disposable incomes, urbanisation, premiumisation, expanding legal-drinking-age population and evolving consumer preferences. IWSR expects Indias total beverage alcohol volumes to grow at approximately 3% CAGR between 2024 and 2034, with spirits, wine and beer each expected to register around 3-4% CAGR over the period.

Indian IMFL Market - Category Mix

Indicative volume composition of the Indian Made Foreign Liquor market.

Whisky	59%
Brandy	20%
Rum	12%
White Spirits	2%

Source: Technopak Analysis / industry data, as reported in 2025 sector research: data pertains to FY2023.

Consumer Landscape

The consumer profile of India is changing evolving with rapidly propagating middle class. The segment is broadly categorised into:

Prestige and Above Segment : Increased aspiration, international travel experiences and expanding brand awareness among urban consumers are key factors propelling growth in this premium market segment.

Evolving consumer demand includes:

Craft and flavoured spirits

Regionally customized blends

Multichannel brand engagement

Growth Potential

The Alcobev market of India is still underpenetrated when compared with an international benchmark. Growth catalysts include:

Demographic dividend: Indias young population drives economic vitality and future growth potential.

Urban migration and infrastructure development

Growing on-premise consumption

Greater social acceptance for drinking amongst women

Worldwide travel

Indian Whisky Segment Overview

India continued to remain one of the worlds largest and fastest-growing whisky markets during FY 2025-26. Whisky remains the dominant category within Indias spirits market, supported by a large and increasingly aspirational consumer base, rising disposable incomes, urbanisation and evolving consumption preferences.

Premiumisation continued to be a key growth driver, with consumers increasingly moving towards premium, prestige and super-premium whiskies. Growing interest in single malts, premium blends and differentiated products, particularly in urban markets, is encouraging manufacturers to expand their premium portfolios and invest in product innovation and brand building.

The increasing presence of international brands and imported Scotch whisky is also contributing to greater consumer awareness and experimentation. At the same time, established Indian whisky brands continue to retain strong positions across mass and mid-market segments, while Indian premium brands are gaining increasing consumer acceptance.

Key Drivers

Favourable demographics : A large working-age population and expanding urban consumer base provide a strong foundation for long-term demand.

Premiumisation : Rising disposable incomes and changing aspirations are supporting demand for premium and super-premium whisky.

Urbanisation : Increasing urbanisation and growth of organised retail, hospitality and entertainment are creating new consumption occasions.

Product innovation : New blends, premium variants, packaging formats and differentiated propositions are expanding consumer choice.

Global exposure : Greater exposure to international brands and Scotch whisky is increasing consumer awareness and supporting premium category growth.

Outlook

The Indian whisky segment is expected to maintain a positive medium-term outlook, supported by premiumisation, rising consumer spending, urbanisation and continued product innovation. The segment is likely to witness increasing competition between established domestic brands, emerging Indian premium brands and international players, creating opportunities for companies with strong manufacturing capabilities, distribution networks and brand partnerships.

Indian Extra-Neutral Alcohol (ENA) Market

Extra-Neutral Alcohol (ENA) is a high-purity form of ethyl alcohol and is a critical raw material for the manufacture of alcoholic beverages, including whisky, vodka, rum, gin and liqueurs. ENA also finds applications in pharmaceuticals, cosmetics, personal care products and other industrial uses.

The Indian ENA market is closely linked to the growth of the alcoholic beverage industry. Rising demand for spirits, particularly premium and branded products, is expected to support continued demand for high-quality ENA. The availability of molasses and grain as feedstock, together with Indias expanding distillation capacity, provides a strong foundation for the development of the domestic ENA industry.

Market Size and Growth

The Indian ENA market is estimated at ~USD 3.5-4.0 billion in 2024. It is expected to grow at a CAGR of ~5-6% through 2030, in line with rising demand for alcoholic beverages and industrial applications.

India is one of the largest producers and consumers of ENA globally, supported by abundant feedstock availability (sugarcane molasses and grains).

Key Drivers

Growth in alcoholic beverages: Increasing consumption of whisky and other spirits remains a principal demand driver for ENA.

Premiumisation: Growth in premium spirits is supporting demand for quality and consistent ENA.

Feedstock availability: Indias established sugar and grain industries provide access to key feedstocks for ENA production.

Diversification of applications: Increasing use of alcohol in pharmaceuticals, personal care, cosmetics and industrial applications provides additional demand .

Distillery investments: Expansion and modernisation of distillation capacities are expected to enhance domestic production capabilities.

Outlook

The Indian ENA industry is expected to witness steady growth, supported primarily by the expansion of the alcoholic beverage industry and increasing demand for premium spirits. Grain-based ENA production is expected to gain greater importance as manufacturers focus on feedstock diversification, quality, efficiency and consistency. Raw material availability, energy efficiency, technology adoption and regulatory developments will remain important factors influencing the industrys competitiveness.

Indian Made Foreign Liquor Segment Overview

Indian Made Foreign Liquor (IMFL) continues to represent a significant segment of Indias alcoholic beverage industry, comprising categories such as whisky, brandy, rum, vodka and gin. The segment benefits from Indias large consumer base, extensive distribution network and increasing preference for branded and premium alcoholic beverages.

While mass and value segments continue to provide a strong volume base, premium, prestige and super-premium categories are increasingly driving value growth . Whisky remains the leading category within IMFL, while brandy, rum and white spirits continue to contribute to market diversity.

Growth in the IMFL segment is being supported by rising disposable incomes, urbanisation, premiumisation, expansion into Tier-2 and Tier-3 cities, improving retail infrastructure and changing consumer preferences. Companies are increasingly focusing on premium product launches, packaging innovation, brand differentiation and experiential marketing to capture emerging consumption opportunities.

The segment, however, continues to operate in a highly regulated environment. State-specific excise policies, taxation, licensing requirements, restrictions on advertising and variations in distribution structures remain important considerations for industry participants.

Outlook

The IMFL segment is expected to remain an important growth engine for Indias alcoholic beverage industry. Premium and super-premium categories are likely to grow faster than the overall market as consumers increasingly trade up towards higher-quality and differentiated products. Whisky is expected to remain the principal growth category, supported by strong brand equity, consumer acceptance and increasing premiumisation.

Growth Drivers

Indias favourable demographic profile, increasing urbanisation, rising disposable incomes and expanding middle-income population provide a strong foundation for the long-term growth of the alcoholic beverage industry. Changing lifestyles and increasing exposure to premium food, beverage and hospitality experiences are contributing to evolving consumption patterns.

The industrys growth is also supported by increasing legal-age consumer participation, expansion of organised retail and hospitality infrastructure, greater penetration into emerging cities and improving consumer awareness of premium and differentiated products.

Rural and semi-urban markets also offer significant long-term potential as distribution networks expand and consumer purchasing power improves. At the same time, the relatively low per-capita consumption of alcoholic beverages in India compared with several developed markets indicates further headroom for market development, subject to applicable laws, regulations and social considerations.

Overall, Indias large and diverse consumer base, favourable age demographics, rapid urbanisation and rising consumer aspirations provide a positive long-term outlook for the alcoholic beverage industry. The combination of volume growth in mass and popular segments and value growth through premiumisation is expected to remain a defining characteristic of the Indian market.

Company Overview & Business Performance

The Company is engaged in the alcoholic beverages industry and operates a grain-based distillery with 66 KLPD capacity and IMFL bottling facility with 4.2 million cases per annum at Sandila, District Hardoi, Uttar Pradesh. The Companys business comprises manufacturing, bottling, sale and distribution of alcoholic beverages across various categories, including Scotch whisky, IMFL whisky and country liquor. The Company has also recommenced its packaging operations of mustard oil at the Companys Sikandrabad unit in Uttar Pradesh, marking a renewed focus on the packaged edible oils segment and enabling better utilisation of the Companys existing infrastructure and capabilities.

During FY 2025-26, the Company continued to focus on strengthening its manufacturing capabilities and expanding its business relationships with established players in the alcoholic beverage industry. During the year, the Company entered into a Contract Manufacturing Tie-Up Agreement with Tilaknagar Industries Limited for bottling of its IMFL brands. The associated bottling line is expected to be commissioned by the end of FY 2026-27. The proposed capacity addition is expected to improve the Companys manufacturing capabilities and provide an additional avenue for revenue growth and capacity utilisation.

The Company also continued its association with United Spirits Limited (USL), part of Diageo plc , as a preferred tie- up unit for manufacture and supply of selected IMFL and Scotch brands. These relationships provide the Company with opportunities to leverage its manufacturing infrastructure and operational capabilities.

During FY 2025-26, the Companys revenue increased to Rs. 40,233.56 Lakh , compared with Rs. 35,262.37 Lakh in FY 2024-25, representing a growth of 14.10% . Profit Before Tax stood at Rs. 2,529.58 Lakh , compared with Rs. 3,400.53 Lakh in the previous year. The profit for the year under review was impacted by a one-time expense of Rs. 742.50 lakh towards the issuance of Sweat Equity Shares to Mr. Varun Gupta, Chief Operating Officer.

After adjusting for this one-time expense, the underlying profitability reflects only a moderate decline during FY 2025-26.

The increase in revenue reflects continued business activity and growth in the Companys operations. The Company continues to focus on improving capacity utilisation, operational efficiency and cost management to support sustainable profitability.

Industry Structure and Developments

The Indian alcoholic beverage industry remained resilient during FY 2025-26, supported by favourable demographics, rising disposable incomes, urbanisation and changing consumer preferences. Premiumisation continued to be an important industry trend, with consumers increasingly showing preference for branded, differentiated and higher-quality products.

The IMFL and spirits segments continue to constitute a significant part of the Indian alcoholic beverage market, with whisky remaining the dominant category. The industry is also witnessing increasing consumer interest in premium and super-premium products, providing opportunities for manufacturers with established manufacturing capabilities and access to strong brands.

At the same time, the industry remains highly regulated, with state-specific excise policies, taxation, licensing requirements and distribution structures having a significant influence on market dynamics. Accordingly, regulatory developments continue to be an important factor in determining the operating environment of the industry.

Opportunities & Threats

Opportunities

The Companys key opportunities arise from the structural growth of the Indian alcoholic beverage industry and its existing manufacturing capabilities.

Premiumisation: The increasing consumer preference for premium and differentiated alcoholic beverages presents opportunities for higher-value products and improved realisations.

Capacity Expansion : The proposed commissioning of the new bottling line under the arrangement with Tilaknagar Industries Limited is expected to provide additional manufacturing capacity and support future revenue growth.

Contract Manufacturing : Increasing outsourcing and tie-up arrangements by established alcoholic beverage companies provide opportunities for the Company to utilise its existing infrastructure and expand its manufacturing relationships.

Growth in IMFL Consumption : Continued growth in branded IMFL consumption, particularly in the whisky segment, provides a favourable demand environment for the Companys manufacturing and bottling operations.

Emerging Markets : Expansion of organised distribution and increasing purchasing power in Tier-II and Tier-III cities provide further opportunities for industry growth.

Threats

The Companys operations remain exposed to several external and industry-specific factors which are given under Risks & Concerns section mentioned below.

Risks & Concerns

The Company operates in an industry where regulatory, market, operational and input-cost risks are inherent. The management monitors these risks on an ongoing basis and takes appropriate measures to mitigate their potential impact.

The Companys key risks include changes in consumer demand, changes in state excise policies and taxation, restrictions or prohibition in particular markets, volatility in raw material and energy costs, disruption in supply chains, competition, and interruptions to manufacturing operations.

The Companys dependence on strategic customers and manufacturing tie-ups also requires continued focus on maintaining quality, operational performance and customer relationships. The Company seeks to mitigate these risks through operational controls, diversification of business relationships, preventive maintenance, compliance systems and continuous monitoring of market and regulatory developments.

Outlook

The medium-term outlook for the Indian alcoholic beverage industry remains positive, supported by rising consumer incomes, urbanisation, premiumisation and increasing demand for branded alcoholic beverages. The Company expects its existing manufacturing infrastructure, strategic relationships and planned capacity expansion to provide opportunities for future growth.

The commissioning of the proposed bottling line in FY 2026-27 is expected to strengthen the Companys manufacturing platform. Going forward, the Companys focus will remain on capacity utilisation, operational efficiency, cost optimisation, strengthening customer relationships and disciplined execution of its expansion plans , while continuing to monitor regulatory and market developments.

Overall, while the industry presents attractive growth opportunities, sustainable performance will depend on our ability to manage regulatory requirements, input-cost pressures, competitive intensity and evolving consumer preferences

Operational and Financial Performance

During the year under review, your Company achieved revenue of Rs. 40,233.56 Lakh, registering a year-on-year growth of 14.10% over the previous years revenue of Rs. 35,262.37 Lakh. The Company reported Profit Before Tax (PBT) of Rs. 2,529.58 Lakh as against Rs. 3,400.53 Lakh in the previous year. While the Company witnessed moderation in profitability during FY 2025-26, it continues to maintain a strong revenue base and remains well-positioned to pursue its growth and expansion plans.

The Company is currently operating in two segments- Edible oils operations and Liquor Operations. During the year, the Company earned a revenue of Rs. 40,191.14 Lakh from Liquor Operations and Rs. 42.42 Lakh from edible oils operations.

Companys performance and growth during the year reflect the strength of our broad-based portfolio and our ability to capitalize on emerging opportunities. We responded swiftly to market dynamics, efficiently serving consumer demand and demonstrating agility, speed, and precision in execution.

Details of Significant Changes in Key Financial Ratios Financial Performance

(INR in Cr.)

Particulars	FY 2025-26	FY 2024-25
Net Sales Value	402.34	352.62
EBITDA	36.86	49.01
PBT	25.30	34.01
PAT	18.66	29.36

Ratios	FY 20252026	FY 20242025	Change	Remarks
Net profit margin	4.62	8.32	-44.39%	The ratio declined due to increase in raw material cost and one-time expense of Sweat Equity shares.
Operating profit Margin	12.11	14.97	-19.13%	The variation is due to increased costs.
Debtors turnover	101.72	110.01	-7.54%	NA
Stock turnover	24.41	16.50	47.94%	Ratio changed due to decrease in average inventory and increase in turnover.
Debt-equity ratio	0.96	8.03	-88.05%	The improvement is attributable to the reduced debt due to repayments/conversion into share capital.
Current ratio	0.50	0.43	15.87%	NA
Interest service coverage ratio	4.67	4.68	0.28%	NA
Return on capital employed	30.84	45.41	-32.09%	The ratio declined due to increase in raw material cost and one-time expense of Sweat Equity shares.

Material Developments in Human Resources / Industrial Relations Front, Including Number of People Employed

During the financial year March 2026, the Company continued to prioritize the development and well-being of its human capital, recognizing employees as a cornerstone of sustainable growth. We remain committed to fostering a workplace culture that empowers our teams, supports career progression, and promotes high levels of engagement across all levels of the organization.

Human Resources

Your Company recognizes that people are the prime assets of the organization. Your Company believes that its employees are integral to driving business success. Your Companys talent pool plays a key role in commitment to deliver quality products and services. Your Company recognizes that the long-term success and sustainable growth of our organization depends on our capacity to attract, retain and develop our employees. We are committed to providing our employees across the country with a safe and healthy work environment and helping them realize their full potential. The organization fosters an open and transparent work culture that drives innovation and nurtures entrepreneurial spirit among all employees. Your Company believes in celebrating milestones, both big and small, and encourages people to connect, communicate and collaborate through various forums.

A growth-oriented work culture is emphasized, with a clear focus on developing premium brands. The Companys customer- focused approach ensures effective responses to consumer needs while encouraging a professional environment that embraces calculated risks and innovation. The HR department fosters a system-driven environment that operates smoothly, regardless of individual work styles. The management promotes employee empowerment by increasingly automating systems and processes, which enhances accountability and creates a more engaged and motivated team.

The Company continues to focus on attracting and retaining right talent with right opportunities to employees. Learning is ingrained in our culture and employees are constantly encouraged and given ample opportunities to upgrade their knowledge and skill.

Your Company remains committed to enhancing employee capabilities, equipping them with the necessary tools to thrive in a rapidly evolving industry and adapt to future challenges. It is worth noting that the Companys industrial facilities operate smoothly without the presence of labor unions, ensuring uninterrupted operations and minimal disruption.

Industrial Relations

Industrial relations during the year remained cordial, contributing to mutual development. Company maintained healthy and harmonious relations at all levels and across all locations. The Board of Directors and management wish to place on record their appreciation for the dedicated of all the employees in achieving strong performance. The Company remained fully compliant with all applicable labor laws and regulatory requirements.

No case was reported under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 was reported during the year.

Workforce Strength

As of March 31, 2026, the total number of employees stood at 214. The workforce includes personnel across various functions such as Sales & Marketing, Manufacturing, Finance and all other Corporate functions.

Cash Flow Analysis

The Cash Flow Statement of the Company for the year under review, in terms of Regulation 34(2) of the Securities & Exchange Board of India (Listing Obligations and Disclosures Requirements) Regulations, 2015 is annexed to the Annual Accounts of the company which forms part of the Annual Report.

Other Equity (Reserves and Surplus)

As on March 31,2026 the Reserves and Surplus in the Balance Sheet were positive at Rs. 3008.39 Lakh as compared to the negative balance of Rs. 879.68, Lakh during the previous Financial Year ended on March 31,2025.

Net Worth of the company stood at Rs. 5154.33 Lakh as compared to the net worth of Rs. 1059.95 Lakh. The significant improvement in Net Worth was primarily driven by the increase in share capital pursuant to the conversion of loans into share capital, coupled with the plough-back of profits earned during the year.

Internal Controls Systems & their Adequacy

The Company has a robust and well embedded system of internal financial controls. This ensures that all assets are safeguarded and protected against loss from unauthorised use or disposition and all transactions are authorised, recorded and reported correctly. An extensive risk-based programme of internal audit and management reviews, provides assurance on the effectiveness of internal financial controls, which are continuously monitored through management reviews, self-assessment, functional experts as well as by the Statutory/ Internal Auditors during their audits.

The internal audit plan is also aligned to the business objectives of the Company, which is reviewed and approved by the Audit Committee. Further, the Audit Committee monitors the adequacy and effectiveness of the Companys internal control framework.

We have in place a robust internal control system aligned with the nature, size and complexity of our operations. Stringent and comprehensive controls have been implemented to ensure:

Efficient and effective use of resources.

Compliance with applicable laws, regulations, and statutes.

Safeguarding of assets and interests.

Proper approval, registration and reporting of transactions.

Reliability and consistency of accounting data.

The Companys internal control system is commensurate with the nature, size and complexities of the operations.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis, describing the Companys growth prospects, are forward-looking statements including, but not limited to, statements relating to implementation of strategic initiatives, future business developments and economic performance. The actual results may vary, depending upon economic conditions, raw- material prices, government policies, regulations, tax laws and other incidental factors. There are several factors that could cause actual results and developments to differ materially from those expressed or implied by these forwardlooking statements, including factors that are outside companys control. Your Company neither intends to, nor assumes any obligation to update or revise these forward-looking statements in the light of any developments which may differ from those anticipated.

For Shri Gang Industries and Allied Products Limited

	Sanjay Kumar Jain
Date: August 31, 2026	Chairperson (Director)
Place: New Delhi	DIN:01014176

REFERENCES

Institute of International Finance (IIF), Global Debt Monitor; International Monetary Fund (IMF), World Economic Outlook, Reserve Bank of India (RBI); National Payments Corporation of India (NPCI); Ministry of Finance, Union Budget 2025-26; WHO, Global Status Report on Alcohol, 2024; IWSR Drinks Market Analysis, 2025; The Economist: Global Elections Outlook 2025; MoSPI, Government of India, 2025; OECD Global Consumption Database, 2024; GourmetPro - Definitive Guide to the Indian Spirits market 2025; Government of India, Economic Survey 2025-26; Indian Industry Outlook: Euromonitor International Limited 2024; Business Standards.