TBI Corn Ltd Management Discussions

(a) Industry Structure and Developments

The Indian maize industry witnessed strong growth during FY 2025-26, supported by increasing demand from the poultry and animal feed, food processing, starch and ethanol sectors. Indias maize production reached a record 55.09 million tonnes in 2025-26, compared with 43.41 million tonnes in 2024-25, driven by a 12.63% expansion in Kharif acreage to 94.95 lakh hectares and favourable monsoon conditions across key producing states including Maharashtra, Karnataka, Madhya Pradesh, and Andhra Pradesh. The Governments Minimum Support Price for maize was revised upward to 2,400 per quintal for Kharif 2025-26 (Marketing Season), offering farmers an estimated margin of 59% over cost of production ( 1,508/quintal). This represents an increase of 175 per quintal from the previous years MSP of 2,225 . The Ethanol Blending Programme, having achieved approximately 17.98% blending by February 2025 and targeting 20% blending by October 2026, has further entrenched maize as a preferred feedstock for grain-based ethanol production. India continues to serve export markets, particularly in Bangladesh, Vietnam, and the Middle East, with export competitiveness improving on the back of record domestic availability and a depreciating rupee. The industry, however, remains exposed to risks arising from weather conditions, pest and disease incidence, input-cost pressures, and mandi price volatility with prices in several key states falling below MSP levels during the Kharif 2025 arrival season on account of surplus supply. Overall, the outlook for the Indian maize industry remains positive, supported by sustained demand from feed, food processing, and industrial applications and the expanding ethanol ecosystem.

(b) Opportunities and Threats

Opportunities

Emergence of Contract Farming: Contract farming continues to gain momentum across major maize-producing states, providing agribusinesses with supply chain predictability while assuring farmers of remunerative prices and access to quality inputs. This model is facilitating the adoption of high-yielding hybrid varieties and precision agronomic practices, resulting in meaningful productivity improvements. With structured procurement linkages to poultry (which consumes 44% of total maize), starch, and ethanol industries all of which recorded higher offtake in FY 2025-26 contract farming is increasingly becoming a cornerstone of supply chain resilience for the maize sector.

Increase in Export of Corn Products : Indias record production of 55.09 MT in FY 2025-26 has progressively restored export competitiveness, particularly for value-added products such as corn grits, corn flour, and corn starch derivatives. The depreciation of the Indian Rupee has improved price attractiveness for international buyers, and traditional markets in Bangladesh, Vietnam, Nepal, and the Middle East are re-engaging with Indian supply after a period of diversion to South American and US suppliers. Industry estimates project corn exports to reach 1.8-2.4 million tonnes in 2025-26, more than double the 805,935 tonnes recorded in 2025 and the highest since 2023. Rising global demand for non-GM Indian corn in health and clean-label food segments presents a further opportunity to scale exports and improve realization.

Structural Demand Growth: According to the FICCI-YES BANK report released at the 12th India Maize Summit 2026, Indias maize demand is projected to surge from 50 MT in 2025-26 to 72 MT by 2030-31, representing a 44% increase driven by ethanol blending, poultry feed, and starch industries. This structural transformation positions maize as Indias fastest-growing major cereal, with production more than doubling from 25.90 MT in 2016-17 to 55.09 MT in 2025-26.

Threats

Lack of Modern Technology: Continued dependence on traditional farming methods limits yield efficiency across a significant portion of Indias smallholder-dominated maize cultivation base. Inadequate post-harvest storage and processing infrastructure - particularly in emerging production geographies in eastern India - leads to avoidable losses and quality degradation. The absence of widespread digital market access and price discovery tools further constrains farmers ability to optimize realization, and periodic supply chain fragmentation continues to create inefficiencies between farm gate and end-user.

Lack of Proper Pest Management: Fall Armyworm (Spodoptera frugiperda) infestations continue to pose a critical threat to maize crops across more than 20 states, with yield losses ranging from 26% to 80% in severely affected areas. Stem borers, shoot fly, turcicum leaf blight, and downy mildew add further biotic stress across both Kharif and Rabi seasons. The lack of uniform adoption of Integrated Pest Management protocols at the smallholder level, combined with regulatory restrictions on GM seed technologies, limits the effectiveness of systemic crop protection measures and continues to expose the sector to production volatility.

Inter-Sectoral Competition and Price Volatility: The diversion of maize to ethanol production under the EBP, while a structural demand driver, simultaneously tightens supplies available to the feed and starch sectors, creating inter-industry competition and input cost volatility. The poultry sector, which consumes nearly 60% of Indias maize and requires an estimated 23.52 MT of maize in 2025-26 for 327 million layers and 5.5 billion broilers, faces heightened competition from distilleries. The substantial acreage expansion in FY 2025-26, while boosting output, contributed to mandi price pressure in several states, with prices dipping below MSP levels and creating income risk for farmers.

(c) Segment wise or Product-wise Performance

Corn Grits : Demand remains robust from breweries, snack manufacturers, and breakfast cereal producers, with export potential strengthening in Southeast Asian markets on the back of competitive pricing from Indias record 2025-26 harvest. Value realization in this segment has benefited from growing organized food processing capacity. The India Corn Flakes market (closely related) was valued at USD 83.87 million in 2024 and is projected to reach USD 274.28 million by 2033, growing at a CAGR of 14.02%.

Corn Bran : Continues to gain traction in health-conscious consumer segments as a high-fibre ingredient for breakfast cereals and functional foods, while retaining strong demand in the animal feed formulation space. Production volumes are gradually scaling up with expansion in wet milling capacity across Madhya Pradesh, Gujarat, and Maharashtra.

Broken Maize: Remains the dominant volume segment, serving as the primary raw material for the poultry and cattle feed industries. Animal feed accounts for 54% of Indias total maize consumption (44% poultry, 10% livestock). Seasonal price volatility was pronounced during FY 2025-26, with mandi arrivals peaking sharply post-Kharif harvest, though strong feed industry offtake provided underlying demand support through the year. The poultry sector alone is expected to require 23.52 MT of maize in 2025-26 .

Processed Indian Yellow Maize: Witnessed rising demand from grit-making industries and animal feed manufacturers both domestically and across South and Southeast Asian markets. The large surplus production in FY 2025-26 improved the availability and competitiveness of Indian yellow maize for both domestic processing and export channels.

Corn Flour: Experienced consistent demand growth in retail and food service channels, particularly for gluten-free, bakery, and convenience food applications. The segment continues to benefit from premiumization trends in urban consumption, though competition from alternative flours remains a factor in certain price-sensitive markets.

Corn Flakes: Continued to benefit from the sustained and growing preference for traditional Indian namkeen and farsana categories, with the snack food industry expanding its maize-based product portfolio in both organized and unorganized retail formats.

Corn Germ: Increasingly valued for edible oil extraction, with residual de-oiled cake maintaining firm demand in livestock and poultry feed formulations. Expanding wet milling capacity across Madhya Pradesh, Gujarat, and Maharashtra is supporting higher germ recovery and downstream oil production volumes.

The processed maize segment - comprising flakes, flour, and grits - continues to demonstrate higher value realization relative to bulk commodities, reflecting the gradual shift in consumption patterns toward convenience and specialty foods. Industrial applications, including ethanol and starch derivatives, recorded the most aggressive demand growth trajectory in FY 2025-26, aligned with Indias food processing sector expansion and the governments biofuels policy momentum.

(d) Outlook

The Indian corn market is projected to grow at a CAGR of 7.86%, reaching USD 2.30 billion by 2030, underpinned by the expanding Ethanol Blending Programme targeting 20% blending by October 2026, sustained growth in animal feed consumption, and deepening demand from the food processing and starch derivatives industries. The record production of 55.09 million tonnes in FY 2025-26 has strengthened domestic supply availability and improved export competitiveness, while government policy support through MSP revisions and biofuel procurement pricing continues to incentivize maize cultivation. Productivity gains from hybrid seed adoption, micro-irrigation, and precision farming are expected to further consolidate Indias supply base over the medium term. Emerging opportunities in bio-industrial applications, sustainable packaging, and non-GM corn exports present meaningful upside, while challenges around inter-crop competition, GM regulatory approvals, and logistics infrastructure will require continued attention. By 2029-30, industrial and processing uses are expected to constitute approximately 45% of total demand, cementing corns position as Indias third most important cereal after rice and wheat.

The Indian maize industry faces a range of risks that could impact its growth trajectory:

Climatic Risks: Erratic monsoon patterns, unseasonal rainfall, and drought conditions remain a persistent threat to Kharif crop yields across key producing states. While FY 2025-26 benefited from favourable monsoon conditions, climate volatility continues to pose production risks.

Pest and Disease Pressures: Fall Armyworm infestations and stem borer attacks continue to cause significant crop losses (26-80% in severely affected areas) across more than 20 states, requiring sustained investment in crop protection and IPM adoption.

Technology Constraints: Delays in GM seed regulatory approvals limit access to yield-enhancing technologies widely available in competing geographies, constraining productivity gains relative to global peers.

Price Volatility and Income Risk: The substantial acreage expansion in FY 2025-26 ( +12.63% to 94.95 lakh hectares ), while boosting output to 55.09 MT, contributed to mandi price pressure in several states, with prices dipping below MSP levels ( 2,400/quintal ) during the Kharif arrival season. This creates income risk for farmers despite government price support.

Inter-Sectoral Competition: The diversion of maize to ethanol production under the EBP, while a structural demand driver, simultaneously tightens supplies available to the feed and starch sectors, creating inter-industry competition and input cost volatility. The poultry sector, which consumes nearly 60% of Indias maize , faces heightened competition from distilleries, with industry estimates suggesting a potential 17 MT shortfall in 2025-26.

Infrastructure Gaps: Weak post-harvest storage infrastructure and fragmented supply chains continue to result in avoidable losses and quality inconsistencies, particularly in emerging production geographies in eastern India.

Export Sensitivity: Export competitiveness remains sensitive to global price movements, currency fluctuations, and the quality standards demanded by international buyers. While exports are projected to reach 1.8-2.4 million tonnes in 2025-26 , this remains below the 3.70 million tonnes achieved in FY22.

Collectively, these risks underscore the need for continued policy support, infrastructure investment, and technology adoption to sustain the sectors growth momentum.

(f) Internal Control Systems and Their Adequacy

The company has implemented robust internal control systems that ensure efficient operations, compliance with laws and regulations, and the reliability of financial reporting. Regular audits and reviews are conducted to assess the adequacy of these systems, with improvements made as necessary to address any identified weaknesses. The internal control framework is deemed adequate and effective in mitigating risks.

(g) Discussion on Financial Performance with Respect to Operational Performance

The Companys financial performance during FY 2025-26 has been supported by increased sales volumes across key product segments, aided by the favourable raw material availability arising from Indias record maize harvest. Operational efficiency initiatives have contributed to improved margins, notwithstanding the near-term price pressure experienced in the maize commodity market during the post-Kharif arrival season. Investments in processing capacity and quality infrastructure have enabled the Company to better serve growing domestic and export demand, and the overall operational performance remains aligned with the Companys medium-term growth objectives.

(h) Material Developments in Human Resources / Industrial Relations Front, Including Number of People Employed

During the financial year, the company has made significant strides in strengthening its human resources. New training programs have been introduced to enhance employee skills, particularly in areas of quality control and production efficiency. Industrial relations have remained stable, with no major disruptions. The total number of employees as of the end of the financial year stands at 2025-26.

(i) Details of Significant Changes in Key Financial Ratios

Sr No.	Ratios	Numerator	Denominator	As at 31st March, 2026	As at 31st March, 2025	% change in Ratio	Remark - Any change in the ratio by more than 25% as compared to the preceding year.
(i)	Current Ratio	Current Assets	Current Liabilities	1.78	2.13	(16.46)	Within the Limit
(ii)	Debt- Equity Ratio	Total Debt	Shareholders Equity	0.58	0.64	(9.58)	Within the Limit
(iii)	Debt Service Coverage Ratio	Earnings available for Debt Servicing	Total Debt service	4.05	4.39	(7.77)	Within the Limit
(iv)	Return on Equity Ratio	Profit After Taxes	Average Equity	15.33	20.99	(26.96)	Due to Increase in Net Profit
(v)	Inventory turnover ratio	Cost of Goods Sold	Average Inventory	3.24	3.08	5.40	Within the Limit
	(in days)
(vi)	Trade Receivabl es turnover ratio	Revenue from Operations	Average Trade Receivables	73.35	66	11.28	Within the Limit
	(In days)
(vii)	Trade payables turnover ratio	Purchase of Goods &services and	Average Trade Payables	40.38	22	79.83	Due to Increase in Trade Payables
		other expense
	(In days)
							Majorly due to
(viii)	Net Capital turnover	Revenue from Operations	Working Capital	3.41	2.55	33.63	increase In Working Capital.
(ix)	Net Profit Ratio	Net Profit After Taxes	Revenue from Operations	6.05	6.44	(6.05)	Within the Limit
(x)	Return on Capital Employed	Earnings Before Interest and Tax	Capital Employed	26.63	22.19	20	Within the Limit
(xi)	Return on Investmen	Income from Investments	Cost of Investment	-	-	-	Within the Limit
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Registered Office:	By Order of the Board of Directors of
A5/3 & A5/4, MIDC, Miraj		TBI Corn Limited ,
Sangli Maharashtra 416410
Date:	03 rd September, 2026	Ninad Anand Yedurkar	Yogesh Laxman Rajhans
Place: Sangli	Whole-time director & CFO	Managing Director
		DIN: 05266899	DIN: 09408693