SSMD Agrotech India Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS

Indias agriculture sector continues to be a key contributor to the countrys economic growth, employment generation and food security. The sector has benefited from various Government initiatives aimed at improving agricultural productivity, strengthening supply chains, enhancing market access and promoting value-added agricultural products.

The agri-products manufacturing and trading industry is witnessing increased demand driven by population growth, rising consumption levels, improved agricultural output and growing focus on food processing and value addition. The industry continues to offer significant opportunities for organized players that can effectively manage procurement, processing, quality control and distribution networks.

BUSINESS OVERVIEW

SSMD Agrotech India Limited is engaged in the business of manufacturing and trading of agricultural products. The Company focuses on delivering quality products, maintaining efficient procurement and manufacturing processes and strengthening its market presence through customer-centric operations.

During the year under review, the Company continued to focus on operational excellence, efficient resource utilization and sustainable growth while maintaining financial discipline.

FINANCIAL PERFORMANCE

During the financial year ended March 31, 2026, the Company achieved Revenue from Operations of =1 1,534.94 Lakhs as compared to 9,917.95 Lakhs in the previous financial year, registering a growth of approximately 16.30%.

Total Income increased to 711,566.89 Lakhs from %9,918.40 Lakhs during the previous year, reflecting higher business volumes and improved operational performance.

Profit Before Tax stood at 748.77 Lakhs as against 736.95 Lakhs in FY 2024-25. Profit After Tax increased to %552.72 Lakhs from %537.75 Lakhs in the previous financial year, demonstrating the Companys ability to maintain profitability amidst a dynamic business environment.

Purchases and Consumables increased to 10,417.53 Lakhs from 9,700.17 Lakhs in the previous year, corresponding with higher levels of business activity. Employee Benefit Expenses increased from =157.72 Lakhs to 7195.90 Lakhs, while Finance Costs reduced from 75.50 Lakhs to 362.11 Lakhs due to lower debt levels and improved financial management.

KEY FINANCIAL RATIOS

The Companys financial position strengthened considerably during the year. e Current Ratio improved from 1.61 times to 5.59 times, indicating a stronger liquidity position. e Debt Equity Ratio reduced significantly from 0.88 times to 0.04 times, reflecting reduced reliance on external borrowings and a stronger capital structure. e Debt Service Coverage Ratio improved from 3.30 times to 6.70 times due to improved debt servicing capacity. e Return on Equity stood at 23.60% as against 154.80% in the previous year. The decrease was primarily due to a significant increase in equity capital during the year. e Return on Capital Employed decreased from 100.85% to 19.85% owing to the increase in capital employed. e Inventory Turnover Ratio decreased from 14.76 times to 7.67 times due to increased inventory levels maintained for operational requirements. e Trade Receivables Turnover Ratio and Trade Payables Turnover Ratio declined to 10.90 times and 25.97 times respectively, primarily due to higher receivable and payable balances associated with increased business activities. e Net Working Capital Turnover Ratio decreased from 16.06 times to 2.96 times owing to substantial growth in working capital. e Net Profit Ratio stood at 6.49% as compared to 7.43% in the previous year.

OPPORTUNITIES AND THREATS

Opportunities

e Increasing demand for agricultural and processed agricultural products. e Growing opportunities in value-added agri-products. e Expansion of domestic and export markets. e Government support for agriculture and food processing industries. e Rising consumer preference for quality and standardized products.

Threats

e Fluctuations in prices of agricultural commodities and raw materials. e Adverse weather conditions affecting agricultural production. e Regulatory and policy changes impacting the sector. e Competition from existing and new market participants. e Supply chain disruptions and inflationary pressures.

RISKS AND CONCERNS

The Company operates in an industry exposed to commodity price fluctuations, seasonal variations, market competition and regulatory changes. Effective risk management practices have been implemented to monitor and mitigate these risks. The Company continues to focus on maintaining operational efficiencies, prudent inventory management and strengthening customer relationships to minimize business risks.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has established adequate internal control systems commensurate with its size, nature and complexity of operations. These controls are designed to ensure efficient operations, safeguarding of assets, compliance with applicable laws and regulations, reliability of financial reporting and prevention of fraud and errors.

The internal control framework is regularly reviewed by the management and the Audit Committee to ensure its continued effectiveness.

HUMAN RESOURCES AND INDUSTRIAL RELATIONS

The Company recognizes that its employees are critical to its success and growth. Continuous efforts are made towards employee development, skill enhancement and creating a productive work environment. The Company maintained cordial industrial relations throughout the year and continues to focus on fostering a culture of teamwork, accountability and excellence.

OUTLOOK

The outlook for the agricultural products industry remains positive, supported by increasing agricultural output, growing food consumption, rising demand for value-added products and favorable Government initiatives. The Company remains focused on strengthening its manufacturing capabilities, expanding its trading operations, improving operational efficiencies and exploring new business opportunities.

With a strengthened balance sheet, improved liquidity position and reduced leverage, the Company is well positioned to capitalize on future growth opportunities and enhance stakeholder value.

CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis Report describing the Companys objectives, expectations, estimates or projections may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied due to various factors including economic conditions, government policies, market developments, competition and other risks and uncertainties beyond the Companys control.