Your Directors have pleasure in presenting their Report along with the Audited Accounts for the year ended on March 31, 2026. Your Company has continued to grow ahead of the overall FMCG sector, driven by its focus on quality, market expansion, and product innovation. This year has been transformational for the Company, marked by the completion of the Scheme of Merger by Absorption of Gujjubhai Foods Private Limited with the Company, and the Companys subsequent name change to "Gujjubhai Industries Limited" creating a unified FMCG platform and positioning the Company to build Indias first national Gujarati snacks brand. The growth of modern retail formats, e-commerce, and improved distribution channels continues to make packaged snacks and foods more accessible across the country, including in rural areas.
Indias FMCG sector is expected to see a mild revenue rebound of 100 200 basis points to 6-8% in fiscal 2026, on the back of a gradual recovery in urban demand and steady rural demand, as per CRISIL Ratings, compared to a more modest 5-6% growth estimated for fiscal 2025. The industry continues to be shaped by rising health consciousness, premiumisation, and a growing shift toward digital and quick-commerce channels. The Companys Management is pleased to provide an assessment of its performance and future prospects, as well as the opportunities and challenges it faces, in accordance with the Corporate Governance requirements outlined under the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
During the year under review, the Honble National Company Law Tribunal, Mumbai Bench, vide its Order dated 4th February, 2026, sanctioned the Scheme of Merger by Absorption of Gujjubhai Foods Private Limited ("GFPL"/"Transferor Company") with the Company ("Transferee Company"), with a share swap ratio of 7 shares of Sumuka Agro for every 4 shares held in Gujjubhai Foods. The Scheme became effective on 23rd February, 2026. Pursuant to the Scheme, the Company subsequently changed its name to "Gujjubhai Industries Limited" with effect from 6th April, 2026. Post-merger, the promoter and promoter group hold 63.75% and the public shareholders hold 36.25% of the Companys equity. This merger brings together the Companys brand, manufacturing, and distribution capabilities onto a single platform, strengthens management with experienced leadership, and aligns promoter and minority shareholder interests toward long-term value creation.
(a) Industry structure and developments
Your Company operates in the FMCG segment, established in 1989 and listed on the BSE since 1996. The Company offers a diversified portfolio of traditional and health-oriented food products, including namkeen, snacks, khakhra, bhakhri, instant bhel, ready-to-eat foods, packaged salt, drinking water, and agri-commodity trading, operating a scalable, outsourcing-led business model supported by sourcing, manufacturing, and distribution capabilities.
India currently has no branded, pan-India player in traditional Gujarati snacks national FMCG majors carry generic regional flavour depth, while Gujarat-origin brands remain largely confined to their home market. The Company intends to occupy this white space as Indias first national Gujarati snacks brand, differentiating itself through health-first positioning (no maida, no artificial preservatives, no palm oil, and a growing millet-based range) against both national majors and unorganised regional players.
(b) Strengths, Opportunities and Threats
Strengths & Opportunities
? Urbanization in India continues to drive changing lifestyles and a growing preference for convenience foods, fuelling demand for packaged snacks.
? The Companys portfolio spans 64 products across 97 SKUs at multiple price points, with a comprehensive price ladder enabling deeper market penetration across income segments.
? The Company has built a diversified distribution ecosystem comprising 70+ distributors (45+ billing monthly), 15,000+ retail outlets, presence across 5+ states, 5+ OEM manufacturing partners, and partnerships with leading quick-commerce platforms (Swiggy Instamart, Flipkart Minutes, Amazon, D Mart Online, and others).
? The Company is executing a deliberate shift in its revenue mix targeting an increase in FMCGs share of revenue from 22% to 50%, with Salt and Commodity Trading correspondingly stepping back from a combined 78% to 50% through expanding its branded foods portfolio, deepening distribution, and strengthening manufacturing capability, aimed at building a higher-margin, higher-quality earnings mix.
? The Companys South India revenue contribution increased from 60.6% in FY 2024-25 to 71.6% in FY 2025-26, reflecting continued strength in its core Southern markets among the fastest-growing regions for packaged food consumption in India while its West India (including Gujarat) presence is being scaled through the recent acquisitions.
Threats
? Changes in regulatory policies.
? Increase in raw material prices.
? Change in weather conditions.
? Unexpected shifts in customer preferences.
? Impact of currency fluctuation.
? Competition from national FMCG majors, Gujarat-origin regional players, and unorganised local players across its markets.
Understanding customer needs and continuously adapting offerings accordingly remains a key priority for the Company.
(c) Segment-wise or product-wise performance
The Companys product portfolio spans four principal categories: Namkeen & Savoury Snacks, Khakhra & Bhakhri Range, Ready-to-Eat/Ready-to-Consume Range, and the Health & Wellness Range (featuring millet-based, gluten-free offerings). During the year, the Company expanded into new categories through its Ready-to-Cook (RTC) and Ready-to-Eat (RTE) launches, including Instant Bhel and a Panipuri Kit, and continued to build out its "GO2" brand of packaged rock salt and drinking water as future adjacency categories addressing rising consumer demand for wellness-oriented, daily-essential products.
By revenue category for FY 2025-26, Salt contributed approximately 55%, Commodity Trading approximately 23%, and FMCG (Namkeen/Fryums, Khakhra/Bhakhri, and RTE/RTC) the remaining approximately 22%, with the Company targeting a substantial increase in the FMCG share going forward as outlined above.
(d) Outlook
Building on a strong operating performance during the year and the strategic combination with Gujjubhai Foods, along with the strategic acquisition of Tripura Foods, the Company remains focused on scaling its General Trade network from approximately 70 to a targeted 500 distributors over the next 1-2 years, while simultaneously expanding its quick-commerce and modern trade presence. The Company is also investing in manufacturing technology, including a planned industrial-scale namkeen kitchen in Bengaluru, and in digital systems for demand forecasting, inventory optimisation, and distributor-level tracking to support this planned expansion. With improving rural demand and moderating food inflation giving the FMCG sector fresh momentum, the Company believes FY 2026-27 offers continued opportunity for profitable expansion through innovation, deeper distribution, and its acquisition-led growth strategy.
(e) Risks and concerns
Sudden changes in government policies, trade restrictions, or tariffs remain a primary risk to the business. Volatility in commodity prices, seasonal/festival-driven demand fluctuations, and potential shifts in customer preference also pose risk factors. The successful integration of the merged entity and the recently acquired Tripura Foods business including its manufacturing operations, team, and distribution network represents a near-term area requiring focused management attention. Higher trade receivables, reflecting the distribution-led FMCG model, also require continued focus on collections and working capital optimisation. These risks require the Company to remain agile, innovative, and proactive in its strategies to mitigate potential negative impacts.
(f) Internal control systems and their adequacy
The Companys Internal Control Systems have been designed with a proper organizational structure and clearly defined roles and responsibilities to prevent conflicts of interest and reduce the risk of fraud. The Board of Directors and Audit Committee are actively involved in overseeing internal controls. Management regularly identifies and assesses risks related to operations, financial reporting, compliance, and fraud, supported by internal audits and compliance programs. The Company maintains stringent quality controls across its value chain from raw material sourcing and batch-wise inspection to in-house testing and periodic external audits and operates as an FSSAI-licensed Food Business Operator across its manufacturing operations.
(g) Discussion on financial performance with respect to operational performance
During the year under review, the Companys total revenue from operations increased to 12,707.19 Lakhs as of March 31, 2026, from 9,768.79 Lakhs in the previous year, registering growth of 30.08%. EBITDA increased to 778.24 Lakhs (margin of 6.12%) from 738.96 Lakhs (margin of 7.56%) in the previous year, with the margin compression reflecting the current revenue mix skewed toward lower-margin Salt and Commodity Trading businesses, pending the planned shift toward higher-margin FMCG revenue. Profit after tax increased to 517.85 Lakhs, up 10.69% from 467.85 Lakhs in the previous financial year. The Company delivered a Return on Capital Employed (ROCE) of 15.36% and Return on Equity (ROE) of 12.78% during the year.
(Amount in Lakhs)
PARTICULARS |
31/03/2026 | 31/03/2025 |
Total Sales Income from Operations |
12,707.19 | 9,768.79 |
Other Income |
0.04 | 0.31 |
Net Profit/(loss) before depreciation |
709.68 | 703.08 |
Depreciation |
56.98 | 67.33 |
Net Profit/(loss) before taxation |
652.69 | 635.75 |
Current Tax |
132.58 | 162.53 |
Deferred Tax |
2.26 | 5.37 |
Net Profit/(loss) after tax |
517.85 | 467.85 |
(h) Material developments in Human Resources / Industrial Relations front, including number of people employed
The Companys field sales operations are supported by a dedicated team of ten comprising eight Area Sales Officers and two Sales Managers driving the Companys distributor expansion strategy on a zone-by-zone basis. As on 31st March, 2026, the Company had 14 active employees across its corporate, sales, and support functions. During the year, the Company continued its investment in strengthening its finance, sales, and operational teams, including through key management positions such as CFO, Company Secretary, and functional heads across HR, Marketing, and Accounts.
The Company had initiated implementation of an ERP system to streamline recruitment processes, talent management, performance evaluations, and product/supply chain requirements; this implementation remains in progress and is expected to be completed in the ensuing financial year.
Industrial relations during the year remained cordial, with no material disputes reported. The Company continues to focus on employee engagement and upskilling initiatives to support its growth and integration objectives following the merger and recent acquisitions.
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