TGIF Agribusiness Ltd Management Discussions

INDUSTRY STRUCTURE & OVERVIEW:

Indias agriculture sector continues to be one of the most significant contributors to the countrys economy, providing livelihood opportunities to a substantial portion of the population while ensuring food security. The sector has witnessed a gradual transformation through increased mechanization, adoption of modern farming practices, improved irrigation facilities, digital technologies, precision agriculture, and greater focus on sustainable farming methods. Government initiatives aimed at strengthening agricultural infrastructure, improving market access, promoting exports, and encouraging value addition have further contributed to the sectors long-term growth.

The agribusiness industry encompasses the entire agricultural value chain, including cultivation, production, processing, storage, logistics, marketing, and distribution of agricultural produce. Increasing consumer preference for quality produce, rising export opportunities, improved supply chain management, and technological advancements have created significant growth prospects for agribusiness enterprises. At the same time, the industry continues to face challenges such as climate variability, water availability, fluctuating commodity prices, changing regulatory requirements, pest and disease management, and rising input costs.

The horticulture segment has emerged as one of the fastest-growing segments within Indian agriculture, supported by increasing domestic consumption and strong export demand for fruits and vegetables. High-value crops such as pomegranate and dragon fruit have gained considerable importance due to their superior economic returns, growing international demand, and increasing consumer awareness regarding health and nutrition. Sustainable cultivation practices, efficient water management systems, scientific farming techniques, and quality certification have become key differentiators for companies operating in this segment.

Looking ahead, the long-term outlook for the Indian agribusiness sector remains positive, driven by increasing demand for high-quality agricultural produce, favorable demographic trends, growing export potential, technological innovation, and supportive government policies. The Company continues to focus on operational excellence, sustainable farming practices, prudent resource management, and expansion of its agricultural capabilities to capitalize on emerging opportunities while effectively managing industry-related risks.

According to IBEF - 14^th August 2026

India’s agriculture and allied sector continue to play a significant role in the country’s economic growth, with Gross Value Added (GVA) from agriculture rising to Rs. 52.08 lakh crore (US$ 589.34 billion). The expansion reflects the growing contribution of agriculture, forestry and fishing to the Indian economy and the sector’s continued importance in supporting rural livelihoods, food security and domestic demand. Growth in the farm economy has been supported by improvements in agricultural production, allied activities and government interventions aimed at strengthening farm infrastructure, productivity and market access. The sector also remains an important source of employment and income for a large section of the population, while increasing integration with food processing, logistics and value-added agricultural activities is creating new opportunities across the rural economy.

The expansion of agricultural GVA also underlines the increasing importance of strengthening productivity, diversification and value addition across India’s farm sector. Greater adoption of technology, improved irrigation and storage infrastructure, better market linkages and the development of agricultural value chains can help enhance farmers’ incomes and reduce postharvest losses. Initiatives supporting digital agriculture, Farmer Producer Organizations, food processing, agricultural exports and modern supply-chain infrastructure are contributing to the sector’s transformation. Continued investment in climate-resilient farming, mechanization and allied activities such as livestock, fisheries and horticulture can further support sustainable growth. The rising GVA highlights the resilience of India’s farm economy and its role in supporting broader economic development, rural employment and the country’s longterm growth objectives.

According to IBEF - Agriculture and Allied Industries Report - May 2026, following are the key highlights:

• Robust demand: The agriculture sector in India is poised to maintain a 4% growth over the next decade, driven by growing product demand, technological adoption, and supportive government measures, as expressed by NITI Aayog members.

• Policy support: Key farmer-focused initiatives encompass PM-KISAN (Rs. 3.46 lakh crore (US$ 40.01 billion) disbursed), PMFBY (Rs. 1.65 lakh crore (US$ 19.08 billion) in claims), and e-NAM, which has integrated over 1,400 mandis to enhance market access. The Agricultural Infrastructure Fund (AIF) has approved Rs. 52,738 crore (US$ 6.10 billion) for more than 87,500 projects aimed at improving post-harvest management.

• Attractive opportunities: The Indian agricultural sector is predicted to grow to US$ 1 trillion to US$ 4 trillion by 2035 and to US$ 1.8 trillion to US$ 3.1 trillion by 2047

According to Economic Times (20^th July 2026):

India’s agricultural transformation over the last decade has been remarkable. Foodgrain production increased from 252 million tonnes in 2014-15 to an estimated 376.6 million tonnes in 2025-26, registering a growth of nearly 49%. This achievement reflects the cumulative impact of scientific research, improved seed systems, precision agronomy, mechanisation, and policy- and skill-led rapid adoption of modern technologies by farmers. The additional 19 million tonnes of foodgrain produced in 2025-26 alone generated an estimated economic value of around Rs 60,000 crore, with nearly Rs 20,000 crore attributed to ICAR’s research. The estimate assumes that research accounted for 30% of the production gains. The higher output strengthened India’s food security, raised rural incomes, and improved economic resilience.

The horticulture sector has emerged as another key driver of agricultural growth, with production increasing from 281 million tonnes in 2014-15 to nearly 377 million tonnes in 2025-26, representing a growth of 34%. The additional annual production of nearly 7 million

tonnes contributes approximately Rs 20,000 crore to the economy while improving nutritional security.

Despite remarkable progress in developing and scaling climate-resilient technologies, ensuring the long-term sustainability of Indian agriculture remains a critical challenge under changing climatic conditions. Small and fragmented landholdings, excessive dependence on declining groundwater resources, soil degradation, loss of soil organic carbon, climate variability, biodiversity erosion, emerging pests and diseases, and rising greenhouse gas emissions continue to threaten agricultural productivity and resilience. Addressing these challenges also requires significantly higher investment in agricultural research, innovation, and technology to accelerate the transition from resource-intensive production systems to a climate-smart, circular, and knowledge-driven bioeconomy that efficiently utilises biological resources for food, feed, fibre, bioenergy, and ecosystem restoration.

ICAR is addressing these emerging challenges by promoting sustainable agriculture through science-based natural farming protocols, integrated farming systems, model farms, digital soil-climate databases, and soil health management. Simultaneously, it is advancing climate- resilient crop varieties, precision agriculture, regenerative farming, efficient water and nutrient management, and carbon sequestration technologies. Ensuring future water security demands a shift from monsoon-dependent agriculture to water-smart farming through precision irrigation, climate-resilient cropping systems, aquifer recharge, watershed management, and AI-enabled weather advisories, thereby strengthening productivity, resilience, resource-use efficiency, food security, and farmers’ incomes.

International collaboration has also expanded considerably. Through 10 strategic memoranda of understanding, ICAR has strengthened global agricultural partnerships while actively contributing to the BRICS Agricultural Research Platform. The establishment of the BRICS Network Centre of Excellence on Regenerative Agriculture and Natural Farming at ICAR-IIFSR, Modipuram (Uttar Pradesh), reinforces India’s growing leadership in sustainable agricultural research. Simultaneously, ICAR has effectively leveraged digital communication and social media platforms, bringing together ICAR institutes, KVKs, and agricultural universities under a unified national communication ecosystem to enhance farmer outreach and stakeholder engagement.

According to Press Information Bureau (12^th August 2026):

India’s agriculture and allied sectors are witnessing a significant transformation, marked by rising productivity, stronger farmer support systems, and greater resilience. Agriculture remains the backbone of Indias economy, providing livelihoods to approximately 46.1 percent of the workforce. Livestock and fisheries have maintained stable growth of 5-6 percent, strengthening rural incomes and supporting agricultural diversification. Over the past decade, sustained policy interventions have improved access to credit, insurance, and markets, and accelerated the adoption of digital technologies. Growing investments in food processing, cooperatives, livestock, dairy, and fisheries are enabling greater value addition, income diversification, and employment across the agricultural value chain.

• The GVA of the Agriculture and Allied Sector increased from Rs.20.94 lakh crore in 201415 to an estimated Rs.52.08 lakh crore in 2025-26.

• Budget allocation for the Department of Agriculture and Farmers Welfare increased from Rs.27,663 crore in 2013-14 to Rs.1,40,528.78 crore in 2026-27.

• Total foodgrain production increased from 265.05 million tonnes in 2013-14 to 376.56 million tonnes in 2025-26 (Third Advance Estimates).

• Horticulture production increased from 280.70 million tonnes in 2013-14 to approximately 377.78 million tonnes in 2025-26 (Second Advance Estimates).

• The value of agricultural exports increased from USD 32.08 billion in 2014-15 to USD 54.70 billion in 2025-26, recording a growth of about 70.5 percent.

• Share of processed food exports increased from 13.7 percent in 2014-15 to 20.4 percent in 2024-25, a nearly 49 percent rise.

BUSINESS OVERVIEW:

TGIF Agribusiness is primarily a horticulture Company engaged in open farming of fruits and vegetables. Our farm land is spread over an area of over 110 acres in Rajasthan, and our infrastructure is designed to support the open and controlled farming technologies.

The company produces its crop by using the perfect blend of age-old wisdom and new-age technologies to ensure to undertake healthy & Chemical free fruits & vegetables supply round the year to consumer from Open farming.

TGIF adopted High-Tech controlled farming innovative model, allowing the growing crops and sustainable supply all year round instead of just seasonally under controlled environment.

Our Company is engaged in the farming of pomegranate which contribute to more than 95% of the total revenue from operations of the Company. Apart from the farming of pomegranate we are also engaged in the farming and cultivation of dragon fruits and Sangwan trees.

We follow different farming practices so as to produce quality fruits such as fruit thinning, wherein some portion of fruit crop from the tree is removed before its maturity, in order to improve the general size and quality of the remaining crop, leaf vegetative growth practice to reduce tolerance level of external appearance, protecting fruit with protection material, measuring soil moisture to determine the water application. Under our farming model, wherein we generally employ farmers and workers in the vicinity of our farms. We also engage ourselves in to supervision of farmers and croppers to constantly monitor the quantity and quality of crops.

With the growing consumer knowledge, interest, and purchasing power the demand for the fruits have also increased. This, in turn, played an important role in increasing our product demand in the market. We maintain adherence to quality and safety standards including plant quality, product quality, use of plant nutrients, fertilizers, pesticides to safeguard the plants and produce etc. These steps ensure the fulfilment of food safety and quality control and helps us in increasing the farm produce. We use drip irrigation systems for each of our farms to ensure proper irrigation of the farms and also minimize time spent on irrigation activity. The post-harvest facility has been designed to avoid contamination and to maintain food hygiene in the process. The products are packed as per individual client requirement and delivered to the customers.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

TGIF has aligned its current systems of internal financial control with the requirement of Companies Act, 2013, The Internal Control - Integrated Framework is intended to increase transparency and accountability in an organization’s process of designing and implementing a system of internal control. The framework requires a Company to identify and analyze risks and manage appropriate responses. The Company has successfully laid down the framework and ensured its effectiveness.

SEGMENTAL PERFORMANCE OR PRODUCT-WISE PERFORMANCE.

The Company operates in only single segment. Hence segment wise performance is not applicable.

OPPORTUNITIES AND THREATS, RISKS AND CONCERNS

We are an Agri-based Company, our business is dependent on weather conditions, including extreme conditions such as drought and natural disasters. Further, the growth and production of the fruits and vegetables may be adversely affected by any change in the temperatures, weather patterns and the frequency and severity of extreme weather and natural disasters. The longer than usual periods of heavy rainfall in certain regions or a drought in India caused by changes in weather patterns may cause harm to the plantation and effect cultivation/harvesting of the fruits and vegetables. Further, adverse weather conditions may also cause volatility in the prices of commodities, which may affect our sales revenue. Consequently, the occurrence of any such unfavorable weather patterns may adversely affect our business, results of operations and financial condition.

Our businesses are subject to seasonal variations. For example, every crop has a definite harvesting period during which the farm produce is higher compared to other parts of the year, hence the supply of the same is increased during the said period. Though, we maintain sufficient arrangements with storing facilities to store the farm produce and deliver in case of high demands during off period. However, in case we are not able to properly estimate demand and there is a shortage of farm produce and the estimated time period for which the produce can be stored without affecting its quality may have an adverse effect on our production cycle and sales. As a result of such seasonal fluctuations, our sales and results of operations may also vary by fiscal quarter, and the sales and results of operations of any given fiscal quarter may not be relied upon as indicators of the sales or results of operations of other fiscal quarters or of our future performance.

FINANCIAL HIGHLIGHTS

During the year under review, the Company earned a net revenue from operations of Rs. 33,175 thousand for the financial year 2025-2026 against Rs. 33,437 thousand for the financial year

2024-25. Further, the Company earned a Profit before tax (PBT) of Rs. 20,841 thousand for the financial year 2025-2026 against Rs. 18,284 thousand for the financial year 2024-25 and Profit after tax (PAT) of Rs. 20,156 thousand for the financial year 2025-2026 against Rs. 17,382 thousand for the financial year 2024-25.

Cash and Cash equivalents other than bank balance as at March 31, 2026 were Rs. 39,450 thousand. The Company continues to focus on its working capital, receivables and other parameters.

The Basic and Diluted Earnings per share of the company as on 31^st March, 2026 is Rs. 7.79. HUMAN RESOURCES

Company has good relations with its employees. Your company is focused in balance work life approach which promotes employee innovation, excellence and mutual trust between all the personnel and the company. The company also focuses on systematic training programmes and developing the technical and behavioral skills of the personnel at each level of organisation to upgrade and innovate the work culture. Your directors acknowledge and thank employees for their constant support. 5 (Five) number of people were employed in the Company, as on 31^st March, 2026.

CAUTIONARY STATEMENT

Statements made in this Management Discussions and Analysis describing company’s objectives and predictions may be “forward-looking Statements” involving future plans of the company within the meaning of applicable laws and regulations. Actual results may differ from those expressed herein. The company is dependent on factors that can impact the operations i.e. Government regulations, tax regimes, and economic developments within India and other countries. Readers are cautioned not to place undue reliance on these forwardlooking statements that speak only as of their dates. The following discussion and analysis should be read in conjunction with the Companys financial statements included in this report and the notes thereto. Investors are also requested to note that this discussion is based on the Financial Results of the company.

KEY FINANCIAL RATIOS:

The key Financial Ratios for Financial Year 2025-26 and Financial Year 2024-25 are as below:

Sr. No Particulars	Numerator	Denominator	FY 202526	FY 2024-25	% Change	Reason
1 Current Ratio (In Times)	Current Assets	Current Liabilities	47.62	36.83	29.28%	Current Assets increased compare to last year
2 Debt - Equity Ratio (In Times)	Total Debt = Borrowings	Shareholder’s Equity = Total Equity	-	-	-
3 Debt Service Coverage Ratio (In Times)	Earnings available for debt service= Net Profit before taxes + non-cash operating expenses + Interest + other adjustments	Debt Service = Interest + Principal Repayments	-	-	-
4 Return on Equity (ROE) (In %)	Net Profits after taxes - Preference Dividend (if any)	Average Shareholder’s Equity	17.21%	26.18%	34.28%	Average shareholders Equity increases as compare to last years
5 Inventory Turnover Ratio (In Times)	Cost of goods sold OR sales	Average Inventory	-	-	-
6 Trade receivables turnover ratio (In Times)	Net Credit Sales = Revenue from Operation	Average Accounts Receivable	973.10	194.90	399.29%	Revenue from Operation Increased and Trade Receivable reduced compare to last year
7 Trade payables turnover ratio (In Times)	Net Credit Purchases = Purchase Cost	Average Trade Payables (Trade Payable related to Product Purchase)	12.10	8.41	43.77%	Trade Payables reduced compare to last year
8 Net capital turnover ratio (In Times)	Net Sales = Revenue from Operation	Average Working Capital	0.29	0.55	46.41%	Working Capital increased compare to last year
9 Operating Profit Margin Ratio	EBIT (excluding Non-operating Income)	Net Sales = Revenue from Operation	59.24%	52.80%	12.20%
10 Net profit ratio (In %)	Net Profit = Profit for the period	Net Sales = Revenue from Operation	60.76%	51.98%	16.87%
11 Return on capital employed (ROCE) (In %)	Earnings before interest and taxes	Capital Employed = Tangible Net Worth + Total Debt + Deferred T ax Liability	16.38%	17.08%	4.08%
12 Return on investment (In %)	Income generated from invested funds	Average invested funds in treasury investments	10.20%	5.10%	100.07%	Change due to Market forces

 

	For and on behalf of the Board of
	TGIF AGRIBUSINESS LIMITED
	Sd/-	Sd/-
	RACHANA GEMAWAT	NIRAJ GEMAWAT
Place: Ahmedabad	Managing Director	Director
Date: 25th August 2026	DIN: 02029832	DIN: 00030749