Stanbik Agro Ltd Management Discussions

ANNEXURE I TO THE DIRECTORS REPORT

A. INDUSTRY STRUCTURE AND DEVELOPMENTS

Stanbik Agro Limited is engaged in the business of trading and dealing in agricultural commodities. The Company procures, supplies and trades various agricultural products through wholesale and retail channels. During the year, the Company also expanded its retail business by opening new retail outlets, which helped in increasing its market presence and customer reach.

The agriculture sector plays an important role in the Indian economy and continues to provide growth opportunities for businesses engaged in agricultural products. The Company aims to strengthen its business by maintaining product quality, expanding its customer base and improving operational efficiency.

B. OPPORTUNITIES AND THREATS Opportunities

• Growing demand for agricultural products in domestic markets provides growth opportunities for the Company.

• Expansion of retail business and customer network may help increase sales.

• Better supply chain management and efficient procurement can improve operational performance.

• The Company intends to continue expanding its business by strengthening its market presence.

Threats

• Fluctuations in prices of agricultural commodities may affect profitability.

• Unfavourable weather conditions and lower agricultural production may impact the availability of products.

• Changes in Government policies, taxation and regulatory requirements may affect business operations.

• Increasing competition from existing and new market participants may affect sales and margins.

C. SEGMENT-WISE PERFORMANCE

The Company is primarily engaged in the business of trading and dealing in agricultural commodities. Accordingly, the business operates in a single business segment and there are no separate reportable segments.

D. OUTLOOK

The Company expects steady growth in its business by expanding its customer base, improving operational efficiency and maintaining quality standards.

The management remains focused on increasing business opportunities, strengthening relationships with customers and suppliers and achieving sustainable growth. The Company will continue to explore opportunities for expansion while maintaining financial discipline.

E. RISKS AND CONCERNS

The Company may face various risks in the course of its business. Some of the major risks are as follows:

• The business depends on the availability and prices of agricultural commodities. Any shortage or increase in prices may affect the Companys operations and profitability.

• The Company depends on suppliers for procurement of agricultural products. Any disruption in the supply chain may affect business operations.

• The business is affected by weather conditions, crop production and other natural factors.

• The Company operates in a competitive market, which may impact sales and profit margins.

• Changes in Government policies, taxation, food safety regulations or other applicable laws may affect the Companys business.

• Any interruption in transportation and logistics services may affect timely delivery of products.

The Company regularly reviews these risks and takes appropriate steps to minimise their impact on its business.

F. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has adequate internal control systems that are appropriate for the size and nature of its business. These systems help in ensuring proper recording of transactions, safeguarding of assets, maintaining accurate financial records and complying with applicable laws and regulations.

The internal control systems are regularly reviewed by the management and the Audit Committee. Necessary improvements are made from time to time to strengthen the control environment and improve operational efficiency.

G. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the Financial Year 2025-26, the Company continued to achieve strong growth in its business operations. The Company recorded Revenue from Operations of Rs 8,589.51 Lakhs as compared to Rs 5,248.51 Lakhs in the previous financial year, reflecting an increase in business activities.

The Companys financial performance for the financial year 2025-26 and 2024-25 is summarized below:

Particulars	Current Year 31.03.2026	Previous Year 31.03.2025
Revenue from Operations	8589.51	5248.51
Other Income	0	.04
Total Revenue	8589.51	5248.56
Total Expenditure (Including Change in Inventories)	8108.93	4796.85
Profit Before Tax	480.57	451.71
Less: Tax expense/ Deferred tax liability	44.33	76.84
Profit after Tax	436.25	374.87
Earnings Per Share (Basic)	15.93	13.69
Earnings Per Share (Diluted))	15.93	13.69

H. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS

The Company believes that its employees are one of its most valuable assets. It is committed to providing a positive, safe and healthy working environment for all employees.

The relationship between the management and employees remained cordial throughout the year. The Company encourages employee development through continuous learning, training and skill enhancement, which helps improve productivity and overall business performance.

HEALTH, SAFETY AND SECURITY MEASURES

The Company continues to accord the highest priority to health and safety of its employees and communities it operates in. The Company has been fully committed to comply with all applicable laws and regulations and maintains the highest standard of Occupational Health and Safety and ensures safer plants by conducting safety audits, risk assessments and periodic safety awareness campaigns and training to employees. We believe in good health of our employees.

A. DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS

KEY FINANCIAL RATIOS	2025-26	2024-25	Change	Explanations
Debtors Turnover Ratio	6.61	7.54	-12.34%	NA
Inventory Turnover Ratio	11.36	8.18	38.96%	lower average inventory holding (leaner stocking policy) rather than higher COGS
Current Ratio	40.65	.44	9168.87%	Significant infusion of funds classified as current assets — e.g., IPO/rights issue proceeds parked as cash & bank balances or investments, pending utilization
Debt-Equity Ratio	0.00	.01	-29.37%	Increase in shareholders equity (retained earnings or fresh capital)
Net Profit Ratio	5.08	7.14	-28.89%	Increase in operating costs (raw material, employee cost, or finance/admin overheads) outpacing revenue growth

B. DETAILS OF CHANGE IN RETURN ON NET WORTH:

Particulars	2025-26	2024-25	Change	Explanations
Return On Net Worth	14.39	26.98	12.59	The decrease in Return on Net Worth is mainly due to lower profit during FY 2025-26 compared to FY 2024-25."

CAUTIONARY STATEMENT:

The statements made in this Management Discussion and Analysis Report regarding the future plans, expectations and performance of the Company are forward-looking statements. The actual results may be different due to various factors such as changes in the economy, agricultural commodity prices, weather conditions, Government policies, laws and regulations, taxation, competition and other factors beyond the control of the Company.

The Company does not undertake to update these statements for any future changes or developments, except as required by applicable laws and regulations.