Shubhshree Biofuels Energy Ltd Management Discussions

GLOBAL ECONOMY OVERVIEW

The global economy demonstrated resilience during FY 2025-26 despite persistent geopolitical tensions, evolving trade policies, inflationary pressures and financial market uncertainties. According to the International Monetary Fund (IMF) World Economic Outlook, April 2026, global growth is projected at 3.1% in 2026 and 3.2% in 2027, remaining below historical averages amid increasing economic uncertainty and geopolitical challenges.

The global economic environment continues to be influenced by geopolitical conflicts, policy uncertainties, supply chain realignments, trade fragmentation and volatility in commodity markets. While inflationary pressures have moderated across several economies, central banks continue to monitor evolving economic conditions and maintain a cautious approach towards monetary policy.

According to the IMF, downside risks to global growth remain elevated due to ongoing geopolitical tensions, trade policy uncertainty and fluctuations in commodity prices. At the same time, easing inflationary pressures, resilient labour markets and improving financial conditions in several economies are expected to support economic activity over the medium term.

The World Bank, in its latest assessment, highlighted that global growth continues to face challenges from weak investment growth, rising trade barriers and heightened policy uncertainty. Nevertheless, continued investments in infrastructure, productivity enhancement and economic reforms across various countries are expected to support longterm economic stability and growth.

Despite prevailing challenges, the global economy remains on a path of gradual expansion, supported by improving macroeconomic stability, moderating inflation and sustained policy efforts aimed at strengthening economic resilience and fostering sustainable growth.

Source: International Monetary Fund (World Economic Outlook, April 2026) and World Bank (Global Economic Prospects).

INDIAN ECONOMIC REVIEW

India continued to maintain its position as one of the fastest-growing major economies in the world during FY 2025-26, supported by strong domestic demand, sustained public capital expenditure, resilient private consumption, and a stable macroeconomic environment. Despite global economic uncertainties arising from geopolitical tensions, trade disruptions and financial market volatility, the Indian economy demonstrated remarkable resilience, underpinned by prudent fiscal management, structural reforms and robust domestic economic fundamentals.

According to the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI), Indias real Gross Domestic Product (GDP) is estimated to grow by 6.5% during FY 2025-26 as per the Provisional Estimates, reflecting broad-based growth across key sectors of the economy. The Indian economy continued to benefit from strong domestic consumption, increasing investment activity, government-led infrastructure development and improving business sentiment.

The Governments continued emphasis on capital expenditure remained a key driver of economic growth during the year. Investments in transportation infrastructure, logistics networks, railways, roads, urban development, energy infrastructure and manufacturing capabilities continued to support economic activity and improve the countrys longterm growth prospects. Public and private sector investments, coupled with various policy initiatives aimed at enhancing ease of doing business and strengthening domestic manufacturing, contributed positively to economic momentum.

The services sector continued to remain the primary contributor to economic growth, supported by strong performance in financial services, information technology, trade, transportation and communication services. The manufacturing sector exhibited steady growth driven by increasing domestic demand, capacity expansion, and policy support under

various government initiatives. Meanwhile, the agriculture and allied sectors continued to provide stability to the economy despite climatic challenges in certain regions.

Inflation remained largely within the Reserve Bank of Indias tolerance band during the year, supported by proactive monetary policy measures and easing supply-side pressures. Indias external sector also remained resilient, supported by healthy foreign exchange reserves, stable capital inflows and sustained growth in services exports.

According to the International Monetary Fund (IMF), India is expected to remain among the fastest-growing major economies globally over the medium term, supported by favourable demographics, rising urbanisation, increasing digital adoption, infrastructure development and continued policy reforms. The Governments focus on manufacturing, renewable energy, sustainability, energy security and infrastructure creation is expected to further strengthen the countrys economic foundation and support long-term growth.

Indias strong economic fundamentals, expanding infrastructure base, favourable demographic profile and commitment to sustainable development position the country well for long-term growth. The continued focus on investment-led growth, industrial development and economic reforms is expected to create a conducive environment for businesses across sectors and support the countrys aspiration of becoming a leading global economic powerhouse.

Source: Ministry of Statistics and Programme Implementation (MoSPI), National Statistical Office (NSO), Press Information Bureau (PIB), Economic Survey 2025-26 and International Monetary Fund (IMF) World Economic Outlook.

BIOENERGY AND BIOMASS FUEL INDUSTRY OVERVIEW

Indias bioenergy sector continues to play an increasingly important role in the countrys renewable energy transition, energy security strategy, and decarbonization efforts. With abundant availability of agricultural residues, agro-industrial waste, forestry residues, and organic waste, India possesses significant potential for biomass-based energy generation and production of value-added fuels such as biomass pellets, briquettes, biogas, compressed biogas (CBG), and biofuels.

According to the Ministry of New and Renewable Energy (MNRE), India continues to possess significant bioenergy potential, with an estimated 228 Million Metric Tonnes (MMT) of surplus biomass available annually, capable of supporting approximately 42 GW of biomass-based power generation capacity. Supported by favourable policy initiatives and increasing utilization of biomass resources, the countrys cumulative installed bioenergy capacity has reached approximately 11.7 GW as on March 31, 2026. The availability of abundant biomass resources, coupled with growing focus on energy security, decarbonization and sustainable waste management, is expected to support the longterm growth of the bioenergy and biomass fuel industry.

Recognizing the strategic importance of bioenergy, the Government of India has implemented the National Bioenergy Programme for the period from April 1, 2021 to March 31, 2026. The programme encompasses the Biomass Programme, Waste-to-Energy Programme and Biogas Programme, and provides support for biomass pellet and briquette manufacturing, biomass-based cogeneration projects, and other bioenergy initiatives. The programme is aimed at enhancing biomass utilization, reducing dependence on fossil fuels, supporting rural livelihoods, and strengthening Indias renewable energy ecosystem.

A major growth catalyst for the sector has been the Governments focus on biomass co-firing in coal-based thermal power plants. Under this initiative, biomass pellets are increasingly being utilized as a partial substitute for coal, helping reduce fossil fuel consumption, lower greenhouse gas emissions, and mitigate the adverse environmental impact of crop residue burning. As of February 2026, biomass co-firing initiatives have helped prevent approximately 5.7 million metric tonnes of carbon dioxide emissions since their inception, highlighting the growing role of biomass fuels in Indias clean energy transition.

The sector has also witnessed steady capacity expansion over the years. According to MNRE, Indias cumulative installed bioenergy capacity exceeds 11.75 GW, comprising biomass cogeneration, non-bagasse biomass projects, waste-to- energy facilities and other bioenergy installations. The continued expansion of bioenergy infrastructure reflects increasing policy support, growing investor interest and rising adoption of renewable energy solutions across industries.

Industrial demand for biomass pellets and briquettes continues to grow as industries seek cleaner and more sustainable alternatives to conventional fuels such as coal and furnace oil. Sectors including textiles, paper, food processing, chemicals, pharmaceuticals, ceramics and manufacturing are increasingly adopting biomass-based fuels as part of their sustainability initiatives, carbon reduction strategies and energy cost optimization efforts.

The outlook for the bioenergy and biomass fuel industry remains positive, supported by favourable government policies, increasing emphasis on energy security, rising industrial demand for cleaner fuels, and Indias commitment towards sustainable development and carbon emission reduction. The growing adoption of biomass fuels across power generation and industrial applications, coupled with abundant biomass availability and continued policy support, is expected to create significant growth opportunities for the sector in the coming years.

Sources

1. Ministry of New and Renewable Energy (MNRE) - Bio Energy Overview.

2. Ministry of New and Renewable Energy (MNRE) - National Bioenergy Programme.

3. Press Information Bureau (PIB), Government of India - Government Highlights Progress of Bioenergy Projects (24 March 2026).

4. PIB Factsheet - Bio-Energy: Fuelling Coal Savings and Rural Industry.

5. MNRE Physical Progress Report (May 2026).

KEY STRUCTURAL DRIVERS FOR THE SECTOR

1. Strong Government Policy Support

The bioenergy sector continues to benefit from a favourable policy environment aimed at promoting renewable energy, reducing dependence on fossil fuels and supporting Indias energy transition objectives. The Government of India, through the National Bioenergy Programme (NBP) of the Ministry of New and Renewable Energy (MNRE), has undertaken various initiatives to promote biomass-based energy generation and encourage the establishment of biomass pellet and briquette manufacturing facilities. Such policy measures are expected to strengthen the bioenergy ecosystem and accelerate adoption of biomass-based fuels across industrial and power generation applications.

2. Biomass Co-firing in Coal-Based Thermal Power Plants

One of the most significant demand drivers for the biomass pellet industry is the Governments biomass co-firing initiative in coal-based thermal power plants. The Ministry of Power has been actively promoting the use of biomass pellets as a partial substitute for coal with the objective of reducing carbon emissions, improving air quality and addressing the issue of crop residue burning. The increasing adoption of biomass co-firing by thermal power plants is expected to create sustained long-term demand for biomass pellets and strengthen the market for organized biomass fuel manufacturers.

3. Indias Net Zero and Decarbonization Commitments

Indias commitment to achieve Net Zero emissions by 2070, along with its broader climate action objectives, is expected to accelerate the transition towards cleaner and low-carbon energy sources. Industries across sectors are increasingly focusing on reducing their carbon footprint and improving sustainability performance, resulting in growing acceptance of biomass-based fuels as viable alternatives to conventional fossil fuels.

4. Growing Industrial Adoption of Cleaner Fuels

Industries such as textiles, paper, chemicals, pharmaceuticals, food processing, ceramics and engineering are increasingly adopting biomass pellets and briquettes as substitutes for coal, furnace oil and other conventional fuels. Rising environmental awareness, sustainability commitments and evolving regulatory expectations are encouraging industries to transition towards cleaner and more environmentally responsible fuel sources.

5. Abundant Availability of Biomass Resources

India possesses significant biomass resource potential arising from agricultural residues, forestry waste and agroindustrial by-products. According to various government assessments, the country generates substantial quantities of surplus biomass annually, providing a strong raw material base for the biomass fuel industry. The availability of agricultural residues such as paddy straw, cotton stalk, mustard residue, sugarcane trash and other biomass feedstock supports the long-term growth prospects of the sector.

6. Measures to Address Crop Residue Burning

The Government and regulatory authorities, including the Commission for Air Quality Management (CAQM), have undertaken several initiatives to curb stubble burning and encourage productive utilization of agricultural residues. The promotion of biomass pelletization and biomass-based energy applications not only helps address environmental concerns arising from open-field burning but also creates additional income opportunities for farmers and strengthens biomass supply chains.

7. Energy Security and Diversification of Energy Sources

Growing concerns regarding energy security and volatility in global fossil fuel markets have increased the focus on domestic and renewable energy resources. Biomass fuels provide a locally available and sustainable energy alternative, contributing towards diversification of the countrys energy mix and reducing dependence on imported fossil fuels.

8. Circular Economy and Sustainable Resource Utilization

The biomass fuel industry plays an important role in advancing circular economy principles by converting agricultural and organic waste into value-added fuel products. Efficient utilization of biomass residues promotes resource efficiency, reduces waste generation and supports sustainable development objectives while simultaneously contributing to environmental conservation.

9. Expanding Manufacturing and Infrastructure Activity

Indias continued focus on industrialization, infrastructure development and manufacturing growth is expected to increase overall energy demand across sectors. As industries seek cost-effective and sustainable fuel alternatives, biomass pellets and briquettes are expected to witness increasing adoption across a wide range of industrial applications.

Key Structural Drivers At A Glance

Structural Driver	Impact on Sector
National Bioenergy Programme	Supports biomass fuel ecosystem and capacity creation
Biomass Co-firing Policy	Creates long-term demand for biomass pellets
Net Zero 2070 Commitment	Accelerates transition to low-carbon fuels
Industrial Fuel Substitution	Expands market for pellets and briquettes
Availability of Agricultural Residues	Ensures raw material availability
Structural Driver	Impact on Sector
Crop Residue Management Initiatives	Strengthens biomass supply chain
Energy Security Objectives	Encourages renewable fuel adoption
Circular Economy Practices	Promotes sustainable resource utilization
Manufacturing & Infrastructure Growth	Increases industrial energy demand

Sources

1. Ministry of New and Renewable Energy (MNRE) - National Bioenergy Programme.

2. Press Information Bureau (PIB) - National Bioenergy Programme and Biomass Programme releases.

3. Ministry of Power - Biomass Co-firing Policy and related advisories for coal-based thermal power plants.

4. Commission for Air Quality Management (CAQM) - Crop residue management initiatives.

5. Government of India commitments under the updated Nationally Determined Contributions (NDCs) and Net Zero 2070 roadmap.

6. Economic Survey of India and MNRE Bioenergy Reports.

COMPANYS PERFORMANCE

During FY 2025-26, the Company continued its growth trajectory driven by increasing demand for biomass fuel products, expansion of customer relationships, strengthening of operational capabilities and strategic business initiatives. The Company remained focused on operational efficiency, market development and sustainable growth while navigating a dynamic business environment.

(Rs. in Lakhs)

Particulars	FY 2025-26	FY 2024-25
Revenue from Operations	20183.05	16266.05
EBITDA	1567	1127
Profit Before Tax	1402.94	1069.61
Profit After Tax	1105.98	808.93
Earnings Per Share	20.09	17.54

Note: The above data represents the consolidated financial figures.

The Companys performance reflects its continued focus on strengthening its presence in the bioenergy sector, enhancing operational efficiencies and creating long-term value for stakeholders.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The overview of financial performance with respect to operational performance of the Company can be obtained from the various following ratio analysis.

PARTICULARS	Numerator/ Denominator	2025-26 (in %)	2024-25 (in %)	Change in %	Reasons for more than 25% Variance
Debtors Turnover ratio	Revenue from Operations	6.28	6.18	1.57	NA
	Average Debtors
Inventory Turnover ratio	Revenue from Operations	33.25	40.12	-17.12	NA
PARTICULARS	Numerator/ Denominator	2025-26 (in %)	ALIGN=RIGHT>2024-25 (in %)	Change in %	Reasons for more than 25% Variance
	Average Inventory
Debt Service Coverage Ratio	Earnings Available for Debt Service	108.10	240.33	-55.02	The Companys finance
	Current Interest and Installments of Loan				cost has been increased.
Current Ratio	Current Asset	2.09	2.11	-1.13	NA
	Current Liabilities
Debt Equity Ratio	Total Debts	0.03	0.02	59.91	The Companys profitability has been increased.
	Equity
Operating Profit	EBITDA excluding Other Income	7.34	6.50	12.9	NA
Margin	Revenue from Operations
	PAT
Net Profit Margin	Revenue from Operations	5.48	4.97	10.14	NA
	PAT
Return on equity	Average Shareholders Equity	31.11	26.73	16.40	NA
	EBIT
Return of Capital employed	Average Capital Employed (Total Debt + Equity)	41.61	35.98	15.64	NA
Return on assets	PAT	0.158	0.159	0.66	NA
	Total of Balance Sheet
Return on Net worth	Profit after Tax	27.10	26.73	1.37	NA
	Net Worth

Note: The above data represents the consolidated financial figures.

SEGMENT-WISE PERFORMANCE

The Company operates in a single reportable segment comprising the manufacturing and trading of biomass fuels, including biomass pellets and briquettes. Accordingly, no separate segment-wise disclosure is applicable.

OPPORTUNITIES AND THREATS

• Policy support and biomass co-firing

• Industrial shift to cleaner fuels

• Large agricultural-residue base

• Geographic and capacity expansion

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• Seasonal feedstock availability

• Procurement and logistics volatility

• Alternative-fuel price competition

• Policy, climate and credit risks

The bioenergy and biomass fuel industry is witnessing sustained growth, supported by increasing focus on renewable energy, energy security, carbon emission reduction and sustainable utilization of agricultural residues. Government initiatives promoting biomass utilization, coupled with growing industrial preference for cleaner fuel alternatives, are creating significant opportunities for industry participants. However, the sector also faces challenges arising from raw material availability, price volatility, supply chain constraints and changing market dynamics. The Company continuously evaluates these factors and undertakes necessary measures to capitalize on emerging opportunities while effectively managing associated risks.

Opportunities

Growing Shift Towards Sustainable Fuel Alternatives

Increasing environmental awareness and global decarbonization efforts are encouraging industries to transition from conventional fossil fuels to cleaner and renewable energy sources. Biomass pellets and briquettes offer an environmentally sustainable alternative to coal and other fossil fuels, thereby creating long-term growth opportunities for the sector.

Supportive Government Policies and Regulatory Framework

Government initiatives such as the National Bioenergy Programme, promotion of biomass co-firing in thermal power plants, crop residue management initiatives and various renewable energy policies are expected to drive demand for biomass-based fuels and support sectoral growth.

Increasing Industrial Adoption

Industries such as textiles, paper, chemicals, food processing, pharmaceuticals, ceramics and manufacturing are increasingly adopting biomass fuels to reduce carbon emissions, improve sustainability performance and optimize energy costs. This growing acceptance is expected to expand the addressable market for biomass fuel manufacturers.

Abundant Biomass Resource Availability

Indias large agricultural base generates substantial quantities of biomass residues annually, providing a strong raw material foundation for the industry. Increasing efforts towards efficient collection, aggregation and processing of agricultural residues are expected to further strengthen the biomass supply ecosystem.

Expansion of Biomass Co-firing Initiatives

The Governments emphasis on biomass co-firing in coal-based thermal power plants is creating a significant and scalable demand avenue for biomass pellets. Continued implementation of such initiatives is expected to provide long-term growth opportunities for organized biomass fuel producers.

Energy Security and Fuel Diversification

Growing concerns regarding dependence on imported fossil fuels and volatility in global energy markets are encouraging the adoption of indigenous and renewable fuel sources. Biomass fuels contribute towards diversification of the energy mix and strengthening of energy security.

Growth Through Strategic Expansion

The evolving biomass ecosystem presents opportunities for capacity enhancement, geographical expansion, strategic partnerships and integration across the biomass value chain, enabling companies to strengthen market presence and improve operational efficiencies.

Threats

Raw Material Availability Risks

The industry relies heavily on agricultural residues and biomass feedstock, the availability of which may vary depending upon crop cycles, seasonal factors, climatic conditions and competing demand from other industries.

Volatility in Procurement and Logistics Costs

Fluctuations in biomass residue prices, transportation expenses and logistics costs can impact operating margins and overall profitability. Efficient procurement and supply chain management remain critical for maintaining competitiveness.

Competition from Conventional and Alternative Fuels

Changes in the relative pricing of coal, furnace oil, natural gas and other fuel alternatives may influence customer preferences and impact demand for biomass fuels.

Regulatory and Policy Risks

The sector is influenced by government policies, environmental regulations and incentive structures. Any adverse changes in regulatory frameworks, subsidy mechanisms or compliance requirements could affect industry growth and profitability.

Supply Chain and Storage Challenges

Biomass feedstock requires efficient collection, aggregation, transportation and storage infrastructure. Any disruptions in logistics networks or inadequacies in storage facilities may affect operational continuity.

Increasing Competitive Intensity

The growing attractiveness of the biomass fuel industry may lead to increased competition from both organized and unorganized players, resulting in pricing pressures and margin challenges.

Dependence on Industrial Demand

Demand for biomass fuels is closely linked to industrial production and economic activity. Any slowdown in industrial growth or manufacturing activity may impact consumption patterns and demand for biomass-based fuels.

Climate and Weather-Related Risks

Adverse weather conditions, irregular rainfall patterns, droughts or other climatic events may affect agricultural output and consequently the availability of biomass feedstock.

The Company remains committed to strengthening its procurement network, enhancing operational efficiencies, diversifying its customer base, and expanding its market presence to effectively mitigate risks and capitalize on the favourable long-term prospects of the bioenergy sector.

The Company operates in a dynamic business environment and is exposed to various risks that may affect its operational and financial performance. While the Company has implemented appropriate risk management and internal control mechanisms, certain risks are inherent to the nature of its business and the industry in which it operates.

The key risks and concerns include:

• Raw Material Availability Risk: Dependence on agricultural residues and biomass feedstock, which may be affected by seasonal variations, climatic conditions and crop patterns.

• Price Volatility Risk: Fluctuations in biomass procurement, transportation and other input costs may impact profitability and margins.

• Regulatory Risk: Changes in government policies, environmental regulations and renewable energy frameworks may influence industry growth and business operations.

• Supply Chain and Logistics Risk: Disruptions in sourcing, storage, transportation or logistics infrastructure may affect operational efficiency and timely deliveries.

• Market and Competition Risk: Increasing competition from organized and unorganized players, as well as alternative fuel sources, may exert pressure on pricing and margins.

• Demand Risk: Any slowdown in industrial activity or reduction in energy consumption by end-user industries may impact demand for biomass fuels.

• Credit Risk: Delays in customer payments or deterioration in the financial position of counterparties may affect cash flows and working capital management.

• Climate Risk: Adverse weather conditions and environmental factors may impact biomass availability and procurement activities.

The Company continuously monitors these risks and adopts appropriate mitigation measures through efficient procurement practices, customer diversification, operational controls, prudent financial management and compliance with applicable regulatory requirements. Management believes that its risk management framework is adequate to address the key risks associated with its business operations.

OUTLOOK

The outlook for the bioenergy and biomass fuel industry remains encouraging, supported by increasing adoption of renewable energy, growing industrial demand for cleaner fuel alternatives, favourable government policies and Indias continued focus on sustainable development and decarbonization. The increasing utilization of biomass pellets and briquettes across industrial and power generation sectors, coupled with ongoing efforts to promote biomass-based energy solutions, is expected to create significant growth opportunities for the industry.

The Company remains focused on strengthening its position across the biomass energy value chain through operational excellence, customer diversification, supply chain optimization and strategic growth initiatives. With increasing awareness regarding environmental sustainability and rising demand for biomass-based fuels, the Company is well positioned to capitalize on the evolving opportunities in the sector.

In line with its long-term growth strategy, the Company has undertaken strategic initiatives aimed at strengthening its operational footprint and expanding its presence across the biomass energy ecosystem. During the year, the Company made strategic investments in associate entities engaged in biomass fuel manufacturing and allied energy solutions, thereby creating opportunities for business synergies, value-chain integration and long-term growth.

The Company is also progressing towards future business expansion. Backed by a favourable industry outlook, strong policy support, expanding business relationships and a clear growth strategy, the Company remains confident of its ability to create sustainable value for its stakeholders while contributing to Indias clean energy and sustainability objectives.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has established adequate internal control systems commensurate with the size, scale and nature of its business operations. The internal control framework is designed to ensure 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 Companys internal control systems provide reasonable assurance regarding the effectiveness and efficiency of operations, compliance with applicable laws and regulations, and the reliability of financial reporting. Appropriate policies, procedures and approval mechanisms have been established for various operational, financial and compliance- related activities.

The Company maintains adequate controls over procurement, inventory management, production processes, sales, finance, accounting and statutory compliances. Regular reviews are conducted to ensure that controls remain effective and are aligned with changing business requirements and regulatory developments.

The Audit Committee periodically reviews the adequacy and effectiveness of the internal control systems, significant audit observations and the status of corrective actions undertaken by the management. The recommendations of the Audit Committee and statutory auditors are duly considered and implemented wherever necessary.

The Company also undertakes periodic internal audits through an independent chartered accountancy firm to evaluate the adequacy of internal controls, identify areas for improvement and strengthen risk-management practices. Audit findings and recommendations are reviewed by management, and appropriate corrective actions are taken in a timely manner.

Based on the reviews conducted during the year, the Management believes that the Companys internal control systems are adequate and operating effectively, providing reasonable assurance regarding the reliability of financial reporting, safeguarding of assets and compliance with applicable laws and regulations.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

The Company firmly believes that its employees are its most valuable asset and a key contributor to its continued growth and success. The Company remains committed to fostering a positive, inclusive and performance-driven work culture that promotes employee engagement, professional development and overall well-being.

During the year under review, the Company continued to focus on strengthening its human capital through various employee welfare, engagement and capability-building initiatives. The Company encourages a collaborative work environment and provides opportunities for continuous learning, skill enhancement and professional growth. Various training and awareness programmes are conducted from time to time to enhance employees technical, operational and compliance-related knowledge and to promote a culture of continuous improvement and organizational development. The Company also encourages employee participation, open communication and knowledge-sharing initiatives to foster a culture of collaboration, innovation and continuous improvement across the organization.

The Company is committed to maintaining a workplace that is safe, respectful and free from discrimination and harassment. In compliance with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, the Company has constituted an Internal Complaints Committee (ICC) and has appropriate mechanisms in place to address employee grievances and concerns. The Company also complies with the provisions of the Maternity Benefit Act, 1961 and other applicable labour and employment laws.

Employee engagement continues to be an important area of focus for the Company. Various initiatives such as employee recognition programmes, celebration of birthdays and festive occasions, and activities aimed at promoting team bonding and workplace morale are undertaken periodically to foster a positive organizational culture and strengthen employee relationships.

The Company also places significant emphasis on employee health, safety and well-being and strives to provide a conducive work environment that supports productivity, employee satisfaction and personal growth.

Industrial relations remained cordial and harmonious throughout the year and there were no material instances of industrial unrest, strikes or labour disputes affecting the operations of the Company.

As at March 31, 2026, the Company had 57 employees on its rolls.

The Board places on record its sincere appreciation for the dedication, commitment and valuable contribution of all employees towards the continued growth and success of the Company.

CAUTIONARY STATEMENT

This Management Discussion and Analysis contains forward-looking statements within the meaning of applicable laws and regulations. Such statements include, among other matters, statements relating to the Companys objectives, strategies, plans, projections, estimates, expectations and outlook. Actual results may differ materially from those expressed or implied due to economic conditions, commodity and energy prices, feedstock availability, logistics costs, customer demand, competition, government policies, regulatory developments, climate-related events and other factors affecting the Companys operations. Readers are cautioned not to place undue reliance on these forward-looking statements. The Company undertakes no obligation to publicly update or revise them, except as required by applicable law.

	For and on behalf of the Board of Directors For SHUBHSHREE BIOFUELS ENERGY LIMITED
Date : 17.08.2026 Place: Jaipur	(Sagar Agrawal) (Aastha Agarwal) Chairman and Managing Director Director DIN:03209247 DIN:07172285