Solvex Edibles Ltd Management Discussions

1. Industry Structure and Developments

The edible oils and oilseed processing industry forms an important part of Indias food and agriprocessing ecosystem. The sector is closely linked with agricultural output, oilseed availability, commodity prices, food consumption and the broader FMCG supply chain. Rice bran oil and mustard oil are among the products manufactured and traded within this value chain, while de-oiled cakes generated during extraction and processing serve the animal-feed and allied industries.

The industry remains sensitive to movements in agricultural commodity prices, availability of raw materials, import and domestic price trends, government policies and changes in consumer demand. At the same time, increasing demand for processed food, organised FMCG supply chains and value-added utilisation of oilseed by-products provides continuing opportunities for integrated processors.

Solvex Edibles Limited operates within this value chain with a focus on solvent-extracted rice bran oil and associated by-products, enabling the Company to participate in both the edible-oil and feed-related markets.

2. Industry Opportunities and Growth Drivers

The Companys principal growth opportunities arise from the continued demand for edible oils and the increasing scale of organised food and FMCG procurement in India. The Companys product portfolio also provides diversification through sale of de-oiled rice bran, mustard-based by-products and other products generated from the extraction and processing cycle.

The Companys manufacturing facility at Kemri, Bilaspur, Uttar Pradesh has a processing capacity of approximately 200 TPD and an integrated extraction division. The Company supplies its products across multiple states and to various FMCG customers, providing a platform for further utilisation of installed capacity and expansion of its customer base.

Further opportunities include improving capacity utilisation, strengthening procurement and supply- chain efficiency, improving product realisations, increasing the contribution of higher-value products and expanding geographical reach. The Companys post-IPO capital position also provides scope for investment in plant and machinery and other business requirements.

3. Business Overview and Strategic Positioning

Solvex Edibles Limited is engaged in the manufacturing, distribution, marketing and sale of solvent- extracted rice bran oil and related by-products. Its product portfolio includes rice bran oil, de-oiled rice bran (DORB), rice bran, mustard oil, mustard cakes and de-oiled mustard cakes. The Company primarily supplies its products to FMCG companies and also serves the cattle-feed, poultry-feed and fish-feed segments through its by-products.

The Company operates its manufacturing facility at Kemri, District Bilaspur, Uttar Pradesh, on an approximately 12,140 square metre site. The facility has an installed processing capacity of approximately 200 tonnes per day and includes an extraction division that enables integrated production and processing of rice bran oil.

The Company does not rely on the sale of products under its own consumer brands and instead follows a business model focused on manufacturing, distribution and B2B supply. This positioning allows the Company to focus on operational efficiency, procurement, quality, customer relationships and supply- chain execution.

The Company was incorporated in 2013 and was converted into a public limited company in 2024. During FY 2025-26, the Company also operated as a listed SME entity following its public issue and listing in 2025.

4. Operational Development and Outlook

During FY 2025-26, the Company continued to operate its integrated manufacturing and extraction business while strengthening its position as a supplier of edible oils and oilseed-processing by-products. The existing facility provides an integrated platform for processing rice bran and generating multiple saleable outputs from the extraction cycle.

Going forward, managements focus is expected to remain on improving capacity utilisation, strengthening raw-material procurement, maintaining product quality, improving contribution margins and ensuring efficient working-capital deployment. Particular emphasis is required on synchronising procurement, production, inventory and customer dispatches because commodity-linked businesses are highly sensitive to inventory carrying costs and price movements.

The outlook remains linked to the availability and pricing of rice bran and other raw materials, edible-oil realisations, demand from FMCG and feed customers, operating efficiency and the Companys ability to manage working capital. Management expects operational improvements and disciplined execution to support sustainable growth over the medium term.

5. Risks and Mitigation Approach

The Company operates in a commodity-linked manufacturing environment and is exposed to risks relating to raw-material availability and price volatility, changes in edible-oil realisations, inventory valuation, customer concentration, working-capital requirements and competitive pressures.

The extraction process also involves the use of solvents and other processing chemicals, requiring appropriate safety, storage, handling and environmental controls. Changes in food-safety, environmental, taxation or other regulatory requirements may also affect operating costs and compliance obligations.

The Company seeks to manage these risks through disciplined procurement and inventory management, customer and supplier relationships, production planning, quality controls, cost monitoring and compliance processes. Continued focus on operating efficiency and working-capital discipline remains important for protecting margins in a low-to-moderate margin commodity business.

6. Internal Control Systems

The Companys internal control framework is intended to support reliable financial reporting, safeguarding of assets, operational discipline and compliance with applicable laws and regulations. Controls are particularly important across procurement, inventory, production, dispatches, receivables, payments, banking and statutory compliance.

Managements focus remains on maintaining appropriate approval mechanisms, segregation of responsibilities, reconciliations, inventory controls, periodic review of receivables and payables, and monitoring of key financial and operational indicators. As a listed entity, the Company also remains subject to applicable regulatory and reporting requirements.

The adequacy and effectiveness of internal financial controls are subject to periodic management and statutory review, with corrective actions to be taken wherever control gaps are identified.

7. Financial Performance Review

The financial performance for FY 2025-26, based on Audited consolidated financial information, is summarised below. The figures are presented in (lakhs) to follow the format of the reference report.

Particulars	FY 2025-26	FY 2024-25
Total Revenue (Rs. lakhs)	15,479.26	13,646.45
Total Expenditure (Rs. lakhs)	15,358.12	13,054.59
Profit / (Loss) before tax (Rs. lakhs)	121.14	591.86
Profit / (Loss) after tax (Rs. lakhs)	7.10	408.97
EPS (Basic & Diluted) (Rs.)	0 .09	6.27

Total revenue increased from approximately 13,646.45 (Lakhs) in FY 2024-25 to Rs. 15,479.26 (Lakhs) in FY 2025-26, representing growth of about However, profitabiliy moderated materially during the year. Profit before tax declined from approximately Rs. 591.86 (Lakhs) to Rs. 121.14 (Lakhs), while profit after tax declined from approximately 408.97 (Lakhs) to 7.10 (Lakhs).

Operating profit also moderated during the year, with the operating margin declining from approximately in FY 2024-25 to in FY 2025-26. The performance reflects the sensitivity of the business to commodity prices, input costs, realisations and operating leverage. The key management priority going forward is therefore to convert revenue growth into improved contribution and operating margins through procurement discipline, capacity utilisation, product mix and working-capital management.

8. Risk Management Framework

Risk management remains an integral part of the Companys operating and governance framework. The principal risk categories include commodity-price risk, raw-material availability risk, working-capital and liquidity risk, customer and market risk, operational and process risk, regulatory and compliance risk, food-safety risk and environmental, health and safety risk.

The Company adopts a practical risk-management approach through operational monitoring, financial review, procurement planning, inventory management, contractual and customer controls, statutory compliance and periodic management review. Given the commodity-linked nature of the business, close monitoring of inventory ageing, commodity prices, receivable collections and borrowing costs remains particularly important.

Management will continue to review the Companys risk profile as business volumes, customer relationships, capacity utilisation and market conditions evolve.

9. Human Resources and Capability Development

Human resources remain an important enabler of safe, efficient and compliant manufacturing operations. The Companys operations require personnel with capabilities across extraction and refining processes, quality control, maintenance, production planning, procurement, logistics, finance, sales and regulatory compliance.

Managements focus remains on maintaining a skilled and accountable workforce, strengthening technical and safety awareness, improving process discipline and encouraging a performance-oriented working culture. Employee capability development is expected to support operational reliability and the Companys growth objectives.

The Company also recognises the importance of workplace safety and responsible operating practices, particularly given the nature of solvent extraction and industrial manufacturing activities.

10. Cautionary Statement

This report contains forward-looking statements based on the Companys current expectations, assumptions and available information. Actual results may differ materially from those expressed or implied due to changes in economic conditions, commodity prices, raw-material availability, customer demand, competitive dynamics, regulatory developments, interest rates, operating conditions and other factors beyond the Companys control.

The statements relating to future growth, profitability, capacity utilisation and operational improvement should be read in conjunction with the Companys audited financial statements, statutory reports and other disclosures made from time to time.

For SOLVEX EDIBLES LIMITED
(Formerly Known as Solvex Edibles Private Limited)

SD/-
ASHISH GOEL
(MANAGING DIRECTOR)
(DIN: 01084671)
R/O S/O BRIJ BHUSHAN GOEL, 2, KASHIPUR ROAD, BEHIND KIDS PLANET SCHOOL, SURYA INCLAVE, RUDRAPUR, UDHAM SINGH NAGAR, UTTARAKHAND- 263153

SD/-
ROHIT GUPTA
(WHOLE-TIME DIRECTOR)
(DIN: 07821110)
R/O B-19, ALLIANCE KINGSTON ESTATE, KASHIPUR ROAD, KICHHA, UDHAM SINGH NAGAR, RUDRAPUR, UTTARAKHAND

Place: Bilaspur, Rampur (U.P)
Date: 02-09-2026