Tasty Bite Eatables Ltd Management Discussions

Economic Overview

Global Economic Overview1

Despite heightened trade barriers and ongoing uncertainty, the global economy demonstrated notable resilience, achieving a growth rate of 3.4%. This performance was supported by a surge in technology investment, a partial easing of trade policy tensions, targeted fiscal support in several countries, and generally accommodative financial conditions.

While some developed countries navigated cooling labour markets and policy-related uncertainties, the EMDEs maintained steady growth momentum, growing by 4.4% compared to 1.9% growth rate in developed economies. A weaker US dollar, along with increasingly coordinated global financial systems, provided these markets with a relative economic advantage. However, growth among smaller economies remained uneven, constrained by fiscal limitations, currency volatility, and elevated debt burdens.

Inflation continued to ease, reaching 4.1% in CY2025. Lower energy prices and stable retail inflation helped improve corporate profit margins while supporting consumer spending. At the same time, rising tariffs prompted a shift in global trade patterns, with countries transitioning towards partners with preferential trade agreements. For the consumer market, this translated into lower import costs for raw materials used in domestic manufacturing.

In contrast, labour markets in the US and the UK have shown signs of weakening, partly due to reduced labour mobility and corporate restructuring efforts in response to AI adoption. This points to a growing divergence in global consumption patterns—consumers in developed markets may increasingly favour value-driven retail models, while the large and expanding workforce in developing countries is expected to drive demand for affordable, entry-level and digitally-connected consumer goods, services and infrastructure.

Global Economic Outlook

The global outlook has deteriorated sharply following the outbreak of war in the Middle East. The closure of the Strait of Hormuz, coupled with significant damage to key production facilities in a region critical to global hydrocarbon supply, has heightened the risk of a severe energy crisis. This disruption has derailed what had previously been a steady growth trajectory.

Against this backdrop, global growth is projected to ease to 3.1% in 2026 before edging up slightly to 3.2% in 2027. Inflation is expected to rise modestly in 2026, before resuming its downward trajectory the following year, with EMDEs likely to face the most pronounced pressures.

Global trade is now is expected to slow as the temporary surge in protection-driven shipment fades and the full impact of tariffs makes its presence on retail price tags. Domestic demand is likely to remain a key driver in emerging Asian economies, even as China contends with structural challenges linked to industrial overcapacity.

Amid this uncertainty, investment in AI presents an attractive opportunity, driven by its potential to enhance productivity and operational efficiency. This technological wave is enabling retailers to refine their inventory forecasting to avoid overstocking. At the same time, accommodative fiscal policies in developed economies are expected to stimulate economic growth, while Europes ongoing structural reforms aim to modernise logistics infrastructure and accelerate technological advancement.

Global GDP Growth Projections

Indian Economy2

Amid persistent global headwinds, India has sustained strong economic momentum, recording a GDP growth rate of 7.7%. Inflation fell to historically low levels during the year, supported by stable food prices. In response to evolving external risks and inflation dynamics, RBI implemented a cumulative 125 basis point reduction in policy rates from February 2025—its most assertive easing cycle since 2019—reflecting a calibrated and proactive macroeconomic approach.

Over the past decade, the economy has undergone a significant transformation, driven by the expansion of renewable energy and digital services, alongside shifts in consumption patterns and investment priorities. GST rationalisation marks a pivotal reform, simplifying the tax structure, reducing rates across key sectors and addressing structural inefficiencies. These measures are aimed at fostering entrepreneurship, generating employment and improving affordability.

Despite external disruptions, the hospitality and food services sector demonstrated resilience, supported by a growing youth population and the rising economic contribution of Tier 2 and Tier 3 cities. A supportive policy environment strengthened domestic consumption and facilitated private investment. Private Final Consumption Expenditure (PFCE) grew by over 7% year-on-year, supported by a recovery in rural demand and increased urban discretionary spending. On the global front, the India-EU Free Trade Agreement represents a strategic milestone in strengthening trade partnerships.

Indias Economic Outlook

Against a backdrop of moderating global demand, rising trade frictions and a nuanced domestic consumption landscape, India has implemented a well-calibrated mix of fiscal, monetary and trade measures that have both stabilised the economy and strengthened its growth foundations. Real GDP growth for FY2027 is projected at 6.6%, reflecting a cautious but positive outlook 3. Capital expenditure in the Union Budget for FY 2026-27 increased by 11.5% to ?12.22 lakhs crores, underscoring continued progress towards Viksit Bharat goals.

The Government remains focused on expanding Indias global presence by strengthening exports across both traditional industries and emerging, technology-driven sectors. The signing of the India-EU Free Trade Agreement, along with similar agreements with other nations, reflects a strategic shift towards diversified export markets and deeper trade integration.

Sustained growth is further supported by favourable demographic trends, including a rising working- age population and steady employment conditions, which continue to reinforce the countrys long-term economic potential.

Global Ready-To-Eat Foods Industry4

The global Ready-to-Eat (RTE) foods market was valued at $ 425.39 billion in 2025, reflecting the sectors strong alignment with evolving consumer preferences for convenience and modern dietary habits. Factors such as urbanisation, smaller household sizes and the rise in dual-income families are driving demand for shelf- stable and quick-to-prepare meals, significantly reducing preparation time.

Europe emerged as a leading regional market in 2025, accounting for a share between 32.24% and 33.24%. This dominance is supported by high consumption of bakery products, breakfast cereals and frozen meals across developed economies, including Germany, the UK and France.

The industry is anticipated to grow from $ 447.62 billion in 2026 to $ 706.78 billion in 2034, reflecting a CAGR of 5.88% during the forecast period. The ready meals segment is expected to hold the largest market share in 2026, amounting to 30.38%, while instant noodles will become the fastest-growing segment. This Growing demand for Asian cuisine around the world along with increased innovations and partnerships in the market will fuel the growth of the segment. Further, the increasing number of new product launches in the plant-based food category will drive the ready-to-eat food manufacturing sector in the near future.

India Ready to Eat5

Indias ready-to-eat meals market was valued at $ 6.2 billion in 2025, driven by growing demand for healthier options, including protein-rich, organic and preservative- free food products. Indias food industry is undergoing a structural transformation, shaped by demographic shifts, rapid urbanisation and evolving consumer lifestyles. Changes in household composition, rising workforce participation and busier daily routines are influencing how meals are planned, prepared and consumed. These trends are accelerating demand for convenient food solutions that deliver quality, nutrition and authentic taste without requiring extensive preparation. The expansion of organised retail, supported by attractive packaging and targeted promotional strategies, has further stimulated impulse-driven purchases. Consumers today are increasingly seeking products that combine convenience with transparency, food safety and clean-label ingredients. Thus, ready-to-eat and ready-to-cook foods are becoming an integral part of everyday meal occasions rather than being viewed as occasional alternatives.

Rapid urbanisation and a shift towards nuclear households have also accelerated demand. In addition, long working hours and extended commutes leave several professionals and students with limited time for meal preparation, increasing reliance on convenient, ready-to- consume food options.

Policy support has added further momentum. Initiatives such as the Ministry of Railways permitting IRCTC to provide ready-to-eat meals on Vande Bharat trains without prior booking have enhanced accessibility and consumer adoption. Supported by these factors, the market is projected to record a CAGR of 7.61% between 2026 and 2034, reaching an estimated value of $ 12.3 billion by 2034.

Indias Food Service Industry6

The industry is projected to surpass $ 125 billion by 2030, driven by rising disposable incomes, rapid digital adoption and a growing preference for convenience- led consumption. While full-service restaurants (FSRs) continue to anchor the nations social dining experiences. The rapid expansion of delivery-centric cloud kitchens and agile Quick Service Restaurant (QSR) models is reshaping the competitive landscape.

Urban consumers, increasingly constrained by time, are no longer driven solely by traditional hospitality; they also prioritise speed, accessibility and seamless service. This shift is accelerating the emergence of a hybrid model that integrates experiential dine-in formats with technology- enabled, high-efficiency delivery channels.

( Key Trends j

* The organised segment is expected to outpace unorganised players, fuelled by robust consumer demand and resilient supply chains

* Growth is increasingly supported by aggregator-led expansion and a transition towards branded formats

* Tier-2 and Tier-3 cities are experiencing rapid industry expansion, driven by improving infrastructure and rising aspirations

* The sector is expected to sustain a ~10% CAGR by 2030 Indias HoReCa (Hotels, Restaurants, and Catering) Market7 Indias HoReCa market experiencing a structural surge driven by the rapid resurgence of the meetings, incentives, conferences and exhibitions (MICE) segment. Institutional catering and event-driven hospitality were driven by heightened corporate mobility and domestic travel returned to peak capacity.

Rising disposable incomes and urbanisation have led to the emergence of experiential spending. Premium cafes, pubs and hotels are capitalising on the demand for immersive social experiences, leveraging aesthetic environments, vibrant nightlife culture and culinary tourism to attract a younger demographic eager for premium leisure.

(Key Trends ]

* A rising appetite for authentic, localised culinary experiences and regional food festivals is driving hospitality footfall across both established hubs and emerging tourist corridors

* Establishments are increasingly mandating eco-friendly practices, including responsible farm-to-table sourcing, zero-waste initiatives and energy-efficient operations to align with environmentally conscious consumers

* Evolving lifestyle norms have made the cafe and pub segment one of the fastest-growing service types, supported by preference for in-person socialisation rather than off- premise consumption

* Beyond consumer-facing delivery apps, operators are aggressively investing in AI -driven inventory management, automated kitchen environments and digital solutions to mitigate high fixed costs and streamline supply chains

India QSR Industry8

Notwithstanding a challenging period marked by intense competition, weak consumer demand and the growing contribution of off-premise business, Indias QSR industry recorded double digit growth in FY26. The growth was primarily facilitated by aggressive outlet expansion, while same-store sales remained under pressure.

Looking ahead, the industry revenues are projected to grow by 12-14% in FY27, supported by a recovery in demand following GST rationalisation, lower interest rates and favourable tax policies. Over the longer term, structural drivers such as urbanisation, favourable demographics and relative low market penetration continue to accelerate growth trajectory, even as franchise economics face strain form elevated fixed costs and rapid network expansion.

(Key Trends )

* Tier-1 and Tier-2 cities are emerging as primary growth hubs, reflecting rising incomes and evolving consumption patterns

* Demand for healthier menu options is increasing at a faster pace than overall order volumes

* Late-night consumption is gaining traction, with midnight ordering becoming a key growth occasion

* Consumers are showing greater willingness to experiment, exploring regional specialities alongside global cuisines

India Cloud Kitchen Industry9

The market is witnessing rapid expansion, driven by the sustained rise in online food delivery and a strong consumer preference for convenience, particularly in metropolitan areas. The asset-light nature of the model, with significantly lower operating costs than traditional dine-in formats, has made it an increasingly attractive proposition for both new entrants and established food service brands.

The India cloud kitchen market was valued at $ 1,236.5 Million in 2025 and is projected to reach $ 3,692.6 Million by 2034, exhibiting a CAGR of 12.28% between 2026 and 2034. This growth is being propelled by the continuous evolution of the digital ecosystem, the expanding reach of food delivery platforms and evolving culinary trends that favour diverse and experimental cuisines.

(Key Trends ]

* Consumers are increasingly drawn to the convenience and contactless dining experience enabled by cloud kitchens

* Accelerating digital adoption and the growth of online delivery are enabling operators to leverage apps and platforms to streamline ordering and enhance customer engagement

* A strong focus on efficiency and scalability is reinforced by the absence of dine-in infrastructure, high rental costs and extensive interior investments, resulting in significantly lower operating expenses

Strategic Imperatives

Challenges	Operational Objective	Risk Management
Product Quality Preservation	To ensure the taste and quality of offerings throughout the transit lifecycle	Maintaining optimal taste, temperature and presentation is critical for brands. Substandard packaging or logistical friction directly correlates with diminished brand reputation and consumer dissatisfaction
Logistical Punctuality	To mitigate delivery latency through optimised routing and dispatch efficiency	Timeliness is a primary driver of customer retention. Delivery delays caused by urban congestion or internal operational inefficiencies often lead to higher customer churn and adversely affect brand perception
ffl Maukation	To establish a distinct value proposition within an increasingly crowded digital marketplace	Low barriers to entry invite aggressive competition. Sustainable growth necessitates a focus on unique culinary offerings, superior service standards and strategic brand positioning.
Fiscal Optimisation	To balance competitive overheads with the rising costs of raw materials and technology	While cloud kitchens benefit from reduced physical overhead, profitability depends on the meticulous management of ingredient procurement, platform fees and technological investments
Virtual Q IB „ . Engagement	To cultivate brand affinity and loyalty in the absence of a physical storefront	The lack of face-to-face interaction creates a loyalty gap. Success requires leveraging digital touchpoints, personalised marketing and data-driven customer service to build trust.

( Emerging Trends )

* Aggregator-led expansion of delivery ecosystems and the rise of speed-focused quick commerce are reshaping competition, with delivery time increasingly emerging as a key differentiator for restaurants

* Cross-cultural innovation and immersive dining formats are accelerating the adoption of global cuisines like Korean, Mexican, Japanese across Indian cities

* Hyper-regional cuisines such as Goan, Bihari and Pahadi, among others are gaining popularity, driven by authentic storytelling and regional identity

* Packaging is evolving beyond functionality, with brands increasingly using design to create an immersive unboxing experience and strengthen consumer engagement

* Health and wellness have become central to consumption patterns, with a growing emphasis on clean-label and health-oriented offerings

* Digital integration is redefining engagement, with restaurants evolving into experiential destinations where immersive interactions drive footfall

Infrastructure expansion across malls, office complexes and retail spaces is supporting industry growth, while innovative business models such as cloud kitchens and house of brands structures are lowering entry barriers and enabling faster market participation in the food services industry.

Tasty Bite Eatables Ltd. (TBEL), founded in 1985 and with its headquarters near Pune, India, is a leading supplier of ready-to-eat Asian and Indian cuisine, sauces, and frozen food products. The Company is widely recognised for its dedication to fresh, organic ingredients and preservative- free formulations, catering to retail consumers in the US, Canada and the UK and other international markets as well as global foodservice providers.

Following its acquisition by Mars Foods in 2017, TBEL has strengthened its focus on sustainability and operational efficiency. The Company has expanded its use of renewable energy and recycled water, while continuing to drive product and process innovation through its research division. The Tasty Bite Research Centre (TBRC) serves as the Companys central innovation hub, driving product, process and technology innovation across the business. The Centre combines culinary expertise, food science, consumer insights and process engineering to develop differentiated products that address evolving market needs. From concept generation and product formulation to pilot trials, commercialisation and postlaunch improvements, TBRC supports every stage of the innovation lifecycle. This integrated approach enables the Company to consistently deliver high-quality, scalable and commercially viable food solutions across retail, foodservice and institutional channels.

Product Portfolio

Consumer Business

Tasty Bite? has established itself as the fastest-growing Asian food brand in the American market. The segment maintains a robust global distribution footprint, with product offerings deeply integrated across premier retail channels in the US, Canada, Australia, New Zealand, Japan, Germany and the UK.

As consumer demand continues to shift towards healthier and more transparent food choices, TBRC remains focused on developing clean-label, preservative-free and nutritionally balanced products without compromising taste or convenience. Research efforts are directed towards enhancing nutritional value through improved ingredient selection, balanced formulations and innovative processing techniques. The Centre also evaluates opportunities across plant-based ingredients, protein-rich offerings, reduced sodium formulations and organic product development to address the growing health and wellness segment while maintaining the authentic flavours associated with the Tasty Bite brand.

Institutional Business (Tasty Bite Xclusive)

The B2B vertical, Tasty Bite Xclusive (TBX), serves the dynamic requirements of Quick Service Restaurants (QSRs), cafes and emerging food service formats. The TBX portfolio is anchored in clean-label innovation, offering institutional partners a premium range of starters and patties. These customised, ready-to-cook solutions deliver global flavour profiles and operational convenience while strictly adhering to zero-preservative, artificial additive- free and trans-fat-free formulations.

Foodservice Business

The Company partners with leading Quick Service Restaurants (QSRs), cloud kitchen networks, and HORECA (Hotels, Restaurants and Caterers) brands across India and the globe. By delivering customised solutions with rapid turnaround times, the Company has established a strong market presence and driven sustained business growth.

TBRC works closely with strategic customers across the foodservice, Quick Service Restaurant (QSR), institutional and hospitality segments to develop customised food solutions tailored to specific operational requirements and consumer preferences. Through collaborative product development, the Company delivers differentiated recipes, customised flavour profiles and innovative menu solutions that enable customers to enhance their own product offerings while maintaining consistency, quality and operational efficiency.

New Product Launch

The Company has strategically expanded into the ready-to-cook B2C segment with the launch of Cheffin. Cheffin products were further expanded into the fast growing quick-commerce segment to capitalise on growing demand. Additionally, the Company significantly increased its advertisement and brand-building investments during the year to support the growth of the emerging brand. Next set of Asian inspired Cheffin range is ready to launch, developed basis consumer research and feedback.

Core Competencies

Scalable Manufacturing and Quality

Advanced facilities equipped with modern technology enable large-scale production while adhering to stringent international safety and quality standards. The Company continues to expand capacity, optimise capital expenditure and improve resource efficiency.

In addition to product development, TBRC plays a significant role in driving process innovation across manufacturing operations. The Centre continuously evaluates opportunities to improve production efficiency, optimise recipes, enhance product consistency and extend shelf stability while maintaining stringent quality standards. Collaborative initiatives with manufacturing teams focus on improving resource utilisation, reducing process variability and enhancing production yields, thereby supporting operational excellence and cost competitiveness across the business.

Innovation-Led R&D

Innovation at TBRC is guided by a deep understanding of consumer behaviour, changing dietary preferences and emerging food trends across domestic and international markets. Continuous evaluation of consumer feedback, market intelligence and category insights enables the Company to anticipate evolving consumption patterns and introduce products that remain relevant in a rapidly changing marketplace. This consumer-first approach ensures that innovation is aligned with both regional taste preferences and global culinary trends while strengthening the Companys competitive positioning.

Specialised Product Portfolio

A diverse range of organic and all-natural offerings is tailored to meet the growing demand from healthconscious consumers across global markets.

Operational and Supply Chain Efficiency

A transparent, sustainable supply chain minimises waste and ensures seamless product flow from farm to consumer.

Strategic Market Partnerships

Strong collaborations with leading Quick Service Restaurants (QSRs), cloud kitchens and the HORECA sector enhance global reach and reinforce market positioning.

Robust Financial Health

The Company maintains a consistent track record of profitability, supported by disciplined execution and steady expansion of market share.

Sustainable Commitment

>TBEL is guided by strong principles of social and environmental responsibility, integrating sustainability across its operations. The Company actively supports the preservation of natural ecosystems through environmentally-friendly practices, whole working to reduce reliance on non-renewable energy sources and limit its environmental impact. As part of its broader sustainability agenda, the Company continues to invest in eco-friendly strategies aimed at minimising its carbon footprint, reinforcing its long-term commitment to ecofriendly operations.

Sustainability is embedded within the Companys innovation philosophy. TBRC actively supports the development of environmentally responsible products and processes through responsible ingredient selection, efficient resource utilisation, simple automations to reduce manpower, optimised process to reduce water steam and Raw material wastages and packaging optimisation initiatives. Research activities also focus on reducing food waste, improving manufacturing efficiency and identifying opportunities to minimise environmental impact across the product lifecycle. These initiatives reinforce the Companys long-term commitment to sustainable growth while creating value for consumers, customers and other stakeholders.

Strategic Pillars for Long-term Growth

Quality and Safety Leadership

The Company builds consumer trust through rigorous quality control and strict adherence to global food safety standards across the entire supply chain, reinforcing its reputation as a reliable provider of health-oriented products.

Speed to Market , Agile Consumer-Driven Product Innovations

By closely tracking evolving consumer preferences, the Company consistently introduces innovative flavours and formats, ensuring its portfolio remains relevant and competitive.

The Company continues to strengthen its innovation pipeline by investing in future-focused capabilities, advanced food technologies and scientific expertise. Research priorities include next-generation convenience foods, healthier meal solutions, premium culinary experiences and sustainable product innovations aligned with evolving consumer expectations. Going forward, TBRC will continue to enhance its capabilities through digital transformation, technology-enabled research and collaborative innovation, ensuring that the Company remains well positioned to capitalise on emerging market opportunities while delivering sustainable long-term growth.

Rapid response to changing consumer expectations remains a key priority for the Company. TBRC employs structured innovation processes, rapid prototyping capabilities and pilot-scale validation to accelerate product development and commercialisation timelines. Crossfunctional collaboration enables faster evaluation of new concepts, reducing development cycles while ensuring products meet quality, regulatory and commercial requirements before market introduction. This agile innovation model strengthens the Companys ability to respond quickly to emerging consumer trends and evolving customer needs.

Global Collaboration within Mars Food & Nutrition

As part of the Mars Food & Nutrition business, TBRC benefits from access to global scientific expertise, advanced research capabilities and international best practices. Collaboration with global innovation teams facilitates the exchange of technical knowledge, consumer insights and emerging technologies, enabling the Company to leverage global capabilities while addressing local market requirements. This strong innovation ecosystem enhances product quality, accelerates capability development and strengthens the Companys position in both domestic and international markets.

Customer Centricity and Engagement

A strong focus on customer experience underpins the business, with responsive communication channels that enable timely feedback and resolution of consumer needs.

Sustainability

The Companys eco-friendly practices, including sustainable sourcing , process optimisation and responsible packaging initiatives, position itself as an environmentally responsible leader within its sector.

Business Landscape

The long-term outlook for the industry remains positive, supported by urbanisation, digital advancement and favourable demographic trends. Over time, organised players have strengthened their position, driven by aggressive expansion and product innovation. Notably, QSR segment has demonstrated strong resilience, maintaining growth despite persistent challenges such as rising costs and intensifying competition.

	Risk Management
Geopolitical Risk	Protracted conflicts, escalation of tariffs and geofragmentation can pose challenge to the Companys margins through input cost inflation, logistical disruptions and increased compliance complexity
Competition Risk	Intense industry rivalry may trigger price wars and margin erosion. Constant innovation is required to address shifting consumer preferences and maintain market share
Inflation Risk	Escalating costs for raw materials, logistics, and labour pose a direct threat to profitability and price competitiveness
Pricing Risk	Volatile input costs and supply chain disruptions complicate optimal pricing strategies, as costs cannot always be passed to price-sensitive consumers
Product Risk	Vulnerabilities in formulation, shelf-life or ingredient consistency can lead to product recalls and significant reputational damage
Customer Risk	Evolving tastes and diminishing brand loyalty, often exacerbated by poor service or quality issues, directly impact sales volumes and long-term growth
Raw Material Risk	Market volatility and sourcing disruptions for key ingredients can delay production and compromise safety standards
Operational Risk	Internal inefficiencies, including labour shortages, inventory mismanagement or regulatory non-compliance, threaten business continuity and margins
Currency Risk	Fluctuations in foreign exchange rates adversely affect the financial performance of international trade and global procurement
Supply Chain Risk	Disruptions across sourcing, manufacturing or distribution networks may lead to stock shortages, unmet demand and lost market positioning.
Insurance Risk	Inadequate coverage or the inability to secure comprehensive policies may leave the Company exposed to substantial liabilities and unforeseen losses
Legal Risk	Non-compliance with stringent global food safety, labelling and trade regulations can result in litigation, penalties and product bans.
Human Risk	Challenges in attracting and retaining specialised talent may disrupt operations, diminish service and quality standards.
Quality Control Risk	Any failure in oversight systems could allow substandard products to reach the market, leading to financial loss and a breach of consumer trust.

Financial Highlights

			(INR in Million)
Particulars	FY 2025-26	FY 2024-25	% Growth
Revenue from operations	5,486.55	5,544.05	-1.0%
Other income	229.67	186.10	23.4%
Total Income	5,716.22	5,730.15	-0.2%
EBITDA	843.43	703.67	19.9%
Finance Cost	57.68	61.82	-6.7%
Depreciation	310.26	297.90	4.1%
Income Tax	122.47	87.87	39.4%
Profit After Tax (PAT)	353.02	256.08	37.9%

Key Ratios-

S. No. Particulars	FY 2025-26	FY 2024-25	Variance	Explanation
1 Current Ratio (in times)	2.57	2.68	-3.90%
2 Debt-Equity Ratio (in times)	0.00	0.09	-100.0%	Borrowings fully repaid during the year.
3 Debt Service Coverage Ratio (in times)	8.60	4.22	103.5%	Increased due to reduction in borrowings.
4 Return on Equity (ROE) (in %)	10.8%	8.6%	26.2%	Increased due to higher profit during the year.
5 Inventory Turnover Ratio (in times)	5.56	6.16	-9.8%
6 Debtors Turnover (Trade Receivables Turnover Ratio) (in times)	7.56	8.34	-9.4%
7 Trade Payables Turnover Ratio (in times)	9.07	10.33	-12.2%
8 Net Capital Turnover Ratio (in times)	3.93	4.83	-18.7%
9 Net Profit Ratio (in %)	6.2%	4.5%	38.2%	Higher profitability in current year driven by operational efficiencies.
10 Return on Capital Employed (ROCE) (in %)	15.7%	12.3%	27.2%	Increased due to higher profit during the year.
11 Return on Net Worth (in %)	10.3%	8.2%	25.5%	Increased due to higher profit during the year.
12 Interest Coverage Ratio (in times)	14.62	11.38	28.5%	Reduction in Interest cost in current year
13 Operating Profit Margin (EBIDTA) (in %)	14.8%	12.3%	20.2%

Financial Analysis

Revenue for FY 2026 landed at INR 5,716.22 million with a flat growth. PBI Affiliate business witnessed a decline of 40% driven by macro-economic challenges in the US. This was offset by the 148% growth in Mars Affiliate Business driven by new innovations.

Core food service business grew by 18% in FY 2026, marking strong positive growth for 10 consecutive quarters. Concurrently, premier foods business maintained a steady growth of 6% for FY 2026.

The Companys profitability improved, marked by a 19.9% increase in EBITDA. EBITDA for FY 2026 was INR 843.43 crores. EBITDA margin improved by 250 bps YoY to reach 14.8%, driven by operational efficiencies and strict control on fixed costs. PAT increased by 37.9% over FY 2025 to reach INR 353.02 million, driven by an improved EBITDA with lower interest costs.

The Company has repaid all its borrowings making it fully debt-free.

Supply Chain Management

Global manufacturing continues to face significant challenges due to interconnected supply chains, escalating geopolitical conflicts and trade uncertainties, including fluctuating US tariffs. These factors create supply chain bottlenecks and complicate cost management.

To mitigate these risks, Tasty Bite has strengthened the integration of its sourcing and supply chain functions, ensuring early compliance with evolving global food regulations. Guided by the Mars Mutuality Principle, the Company collaborates closely with suppliers to develop customer-centric sourcing strategies.

Key initiatives to offset inflationary pressures and operational disruptions include

• Optimised logistics and shipping plans

• A strategic mix of long-term and short-term sourcing contracts

• Company-wide Value Leadership programmes focused on efficiency across product development and manufacturing, aimed at reducing waste and controlling costs

Human Resource

At Tasty Bite, our people remain at the heart of our growth and transformation agenda. During FY26, the Company continued to strengthen its organisational capabilities by attracting experienced leadership talent, investing in future-ready skills and reinforcing a high-performance culture aligned to its long-term growth ambitions. As the India business enters its next phase of expansion, the focus remains on building a more agile, accountable and consumer-centric organisation capable of delivering sustainable growth and innovation.

Organisation Transformation and Leadership Capability

FY26 marked an important phase in the Companys transformation journey as it continued to strengthen capabilities required to accelerate growth in the India business. The Company focused on attracting and integrating experienced leaders across key functions to bring fresh perspectives, deepen functional expertise and build a stronger foundation for future growth. Alongside leadership strengthening, the Company undertook initiatives to define and embed the cultural expectations and behaviours required to support its next phase of growth. This included driving greater accountability, agility, collaboration and consumer-centric decision-making across the organisation. The focus on culture transformation is helping establish new ways of working that enable faster decision-making, stronger cross-functional collaboration and enhanced execution excellence.

As the business evolves, the Company remains committed to building an organisation that combines entrepreneurial thinking with operational discipline, ensuring it is well-positioned to capture emerging opportunities across the consumer, foodservice and innovation-led growth platforms.

Building Future-Ready Talent

The Company continued to invest in capability development across key growth areas including manufacturing excellence, food innovation, quality and food safety, supply chain effectiveness, commercial excellence and leadership development. Through targeted learning interventions, cross-functional exposure and experiential development opportunities, employees were equipped with the skills required to support both current business priorities and long-term strategic ambitions. The Company also strengthened its leadership pipeline through focused succession planning, talent reviews and development interventions aimed at building internal capability and ensuring organisational continuity.

Performance and Accountability

A robust performance management framework anchored in Objectives and Key Results (OKRs) enables alignment between individual contributions and enterprise priorities. The Companys performance-linked reward philosophy reinforces a culture of ownership, meritocracy and accountability, ensuring that business outcomes and employee performance remain closely connected.

Employee Engagement and Culture

The Company continues to foster an open, transparent and collaborative work environment where employees are encouraged to contribute ideas, challenge the status quo and actively participate in shaping business outcomes. Regular communication forums, employee- led initiatives and leadership interactions help strengthen trust, engagement and a strong sense of belonging across the organisation.

Well-being and Employee Experience

The Company believes that employee well-being is fundamental to sustained performance and long-term success. A comprehensive suite of programmes focused on physical, mental and financial well-being, supported by flexible work practices and employee assistance initiatives, helps create a supportive and resilient work environment.

Safety and Industrial Relations

The Company remains committed to maintaining the highest standards of workplace safety and fostering a culture where safety is everyones responsibility. Regular training programmes, awareness initiatives and robust safety practices support a safe and healthy working environment across operations. The Company maintained harmonious industrial relations throughout the year through proactive engagement, transparent communication and a collaborative approach to employee relations. Strong partnerships across the workforce have contributed to operational stability and enabled continued business performance.

Looking Ahead

As Tasty Bite continues its growth journey, the Company remains focused on strengthening organisational capabilities, developing leaders, enhancing employee experience and nurturing a culture that enables innovation, collaboration and high performance. Through continued investment in people, leadership and culture, the Company is building a resilient and future-ready organisation capable of delivering long-term value for customers, employees and shareholders

Quality Management

The Companys quality mission statement, ?Rise Beyond Certifications, guides operational excellence across procurement, manufacturing and distribution. Rather than treating quality management systems as mere compliance mechanisms, the Company leverages these systems to consistently exceed industry benchmarks. Tasty Bite adheres to stringent food safety policies and actively incorporates customer feedback to ensure full compliance with statutory requirements.

Quality Certifications

Certification	Description
ISO 14001:2015	Global standard for Environmental Management Systems (EMS)
ISO 45001	International standard for Occupational Health and Safety
FSSC 22000	Comprehensive Food Safety System Certification recognised globally
Mars QMP (Internal)	Mars Quality Management Programme (Ready-to-Heat category)
India Organic (NPOP)	National Program for Organic Production (India)
USDA Organic (NOP)	National Organic Program (United States)
Canadian Organic (COR)	Canadian Organic Regime (Canada)
Indonesia Halal (MUI)	Halal Certification issued by the Indonesian Ulema Council
HALAL India	Halal Certification for the Indian market
Kosher	Certification ensuring compliance with Jewish dietary laws

The Company maintains strict compliance with Customs-Trade Partnership Against Terrorism (CT- PAT) standards, enabling secure and efficient export operations. This adherence facilitates seamless export operations to the United States, which remains its primary international market.

Compliance, Finance, Accounts and Internal Financial Controls

The Finance and Accounting team works in close coordination with all departments to enhance enterprise value and ensure the consistent application of robust financial management systems. The Company maintains a rigorous internal control and risk management framework, which is periodically audited to identify and mitigate operational vulnerabilities.

A dedicated management team, supported by both internal and statutory auditors, provides ongoing oversight to ensure that these systems remain aligned with the scale and complexity of the business.

Significant elements of the internal control framework include

• Standard Operating Procedures (SOPs) and Risk

Control Matrix: Comprehensive documentation across all business processes to ensure effective financial oversight

• Audit Committee Oversight: Continuous review conducted by an experienced and qualified firm of Chartered Accountants

• ERP Integration: End-to-end system integration across the supply chain, manufacturing and sales functions with SAP implementation

• Budgetary Control: Rigorous review and approval of annual operating and capital expenditure budgets, with monthly monitoring of actual performance

• Risk Management: Periodic evaluation of key business risks, including new product development, foreign exchange volatility and commodity price fluctuations

• Legal Compliance: Implementation of advanced compliance tools at both the factory and corporate headquarters to ensure adherence to applicable regulations

• Management Committee (MCom): A dedicated body for high-level supervision of controls and strategic business decision-making

Cautionary Statement

In accordance with relevant securities laws and regulations, comments in the Management Discussion and Analysis that describe the Companys goals, plans, estimates, or expectations may be deemed to be forwardlooking statements. Actual outcomes could significantly vary from those that were stated or indicated. Economic conditions affecting supply and demand, price conditions in domestic and international markets where the Company operates, competitive pressures in these markets, changes in governmental regulations, tax laws and other statutes, as well as incidental factors, are significant variables that could have an impact on results.

Appreciation

The Directors of the Company would like to express their sincere gratitude for the co-operation received from banks, government agencies, clients, vendors and suppliers during the year. They also acknowledge the role played by affiliate markets in expanding the Companys presence in foreign markets. Alongside, they appreciate the constant patronage received from diverse stakeholders and all parties involved in the Companys operation.