Tirupati Starch & Chemicals Ltd Management Discussions

Your Directors hereby presents the Management Discussion and Analysis Report (MDAR) for the year ended on 31^st March, 2026:

ECONOMIC DEVELOPMENT & BUSINESS OVERVIEW:

India continued to remain among the fastest growing large economies during FY 2026, supported by domestic demand, agriculture, infrastructure-led investments and the food processing sectors. Indias GDP growth for FY26 is estimated at 7.4 per cent driven by the double engine of consumption and investment. It reaffirms Indias status as the fastest-growing major economy for the fourth consecutive year.

Agriculture and allied activities contribute nearly one-fifth of Indias national income at current prices, but account for 46.1% of the countrys workforce. Given the relatively large share of employment in agriculture and allied activities, the sector remains central to Indias overall growth trajectory. Strengthening agricultural performance is therefore important for inclusive growth and ensuring food security. (Source: https://www.indiabudget.gov.in/economicsurvey/)

Amid this backdrop, Tirupati Starch & Chemicals Limited delivered an impressive performance. The Company reported total Revenue of Rs. 365.99 crores in the FY 2025-26 and Net Profit of Rs. 6.58 crores, driven by higher capacity utilization, an improved product mix, and operational efficiencies. With a strategic focus on innovation, cost optimization, and value-added product offerings, the Company is well positioned to capitalize on future growth opportunities.

With a recovering global economy, our focus shifts to sustainable growth strategies amidst evolving market dynamics. Key sectors such as technology and renewable energy are expected to drive significant investments and innovation. Regulatory changes continue to shape business operations and market competitiveness. Challenges persist, including inflationary pressures and disruptions in supply chains, requiring agile responses from enterprises. Nonetheless, opportunities are abundant in digital transformation, harnessing data analytics, and advancing green technologies. As stakeholders navigate these changes, collaboration between public and private sectors remains vital to fostering inclusive growth and achieving economic sustainability in the coming year.

A. Industry Structure and Development:

The Indian starch and starch derivatives market size was valued at USD 3.45 billion in 2025 and estimated to grow from USD 3.7 billion in 2026 to reach USD 5.25 billion by 2031, at a CAGR of 7.25% during the forecast period (2026-2031). Growth stems from ethanol-blending policies that have lifted corn demand, rising adoption of clean-label modified starches across food and beverage categories, and policy-backed shifts toward starch-based bioplastics following the single-use plastic ban. Parallel expansion in pharmaceutical manufacturing, where cyclodextrins enhance drug-delivery performance, and in e-commerce packaging, where starch adhesives replace synthetic glues, further bolsters revenue opportunities. (Source: https://www.mordorintelligence.com/industry-reports/india-starch-and-starch-derivative-market)

A significant trend in the industry is the shift from native starch to value-added derivatives such as liquid glucose, dextrose monohydrate, and modified starches. This evolution is driven by end-user industries seeking better performance, cleaner labeling, and improved functional benefits. However, the industry faces challenges such as raw material price volatility (particularly maize), high energy costs, and tight working capital cycles.

TC&CL remains aligned with industry trends through investments in process optimization, quality improvement, and customer-centric product development. The maize-based starch segment, in which Tirupati Starch & Chemicals Limited operates, remains fragmented yet dynamic, with a clear shift towards value-added and specialty derivatives. Increasing applications of modified starches and dextrins across industries have further enhanced growth opportunities. The Company is well-positioned within this landscape, supported by its integrated operations, diversified product range and emphasis on quality and innovation. These industry developments have positively influenced the Companys performance and strategic direction during the year.

Companys Business Segment:

The company maintains its position in the starch industry, both domestically and internationally, thanks to the high quality and versatile applications of its products. Being ISO 9001:2015 certified underscores the companys commitment to maintaining rigorous standards in product quality and manufacturing processes. Efforts are focused on expanding the companys product portfolio with high-value offerings to enhance profitability. Our vision is to build upon our legacy of excellence, continually evolving to meet the evolving needs of a changing world and shifting customer preferences.

Consistently, as in previous years, the company has successfully supplied its high-quality products globally and continued its strong performance this year. Currently, the company deals with the following product categories:

a) Maize Starch and its byproducts,

b) Dextrose Anhydrous and its byproducts,

c) Dextrose Monohydrate and its byproducts,

d) Modified Starch and value added byproducts.

e) Liquid Glucose.

B. Opportunities and Threats:

Opportunities:

The industrial maize and corn starch sector continues to present substantial, long-term growth prospects, fundamentally driven by an accelerating global and domestic shift toward natural, bio-based, and sustainable ingredients. As downstream industries face increasing pressure to substitute synthetic elements with biodegradable alternatives, corn starch remains a highly versatile and structurally sound input. Backed by abundant domestic crop availability and consistent agro-technological advancements, the post-pandemic recovery has fully transitioned into a permanent structural demand baseline across several key industry verticals. The corn starch industry offers significant growth opportunities due to the increasing demand for natural and sustainable ingredients.

a) There is significant demand for these products across a wide range of industries:

? Food & Beverage Industry: Maize Starch and Modified starches serve purposes such as thickening, stabilizing, binding, and emulsifying. Corn starch is also used in the production of ready-to-eat food products. Starch & its Derivatives utilized as alternatives for sweeteners and flavors in beverages and confectionery.

? Poultry, Dairy & Cattle Sector: Industrial by-products such as maize husk and corn gluten are witnessing robust off-take in the animal husbandry domain. Corn gluten, functioning as an elite, high-yield vegetable protein matrix, is increasingly recognized as an essential component for livestock nutrition and standardized cattle feed blends.

? Paper & Packaging Industry: Corn starch enhances the bonding strength of paper and corrugated boxes.

? Textile Industry: Used to soften fabrics and add weight to clothes.

? Pharma & Cosmetic Industry: Acts as an instant binder and disintegration agent in tablets, emulsions, ointments, powders, etc.

? Automobile Industry: Corn starch is employed in manufacturing car parts to enhance safety features.

? Bioplastics & Sustainable Packaging: The rising environmental concerns have driven an increase in demand for eco-friendly packaging solutions. Corn starch-based bioplastics offer a sustainable alternative to conventional plastics. They are biodegradable and compostable, significantly reducing environmental impact. Companies can seize this opportunity by investing in the advancement of bioplastic products and forming partnerships with stakeholders across the value chain.

b) Increased Export Opportunities: The corn starch industry holds substantial export potential driven by growing global demand for natural and sustainable ingredients. Companies can capitalize on this opportunity by diversifying their product offerings and entering new markets. Collaborating with local partners to establish robust distribution networks is another strategic approach to expanding market presence and capturing market share. Indian exports remain competitively priced compared to global rates, opening up export opportunities for India.

c) Industrialization: Rapid population growth and industrialization have fueled the growth of the corn starch market. Various government schemes supporting industries are major contributors to this growth.

With a legacy spanning over 39 years, we have maintained our position as a leading player in the starch industry, a testament to our remarkable achievements. Our focus on operational excellence has resulted in substantial savings and efficiencies. Strategically, we are expanding into new markets and enhancing our capabilities, meticulously meeting the specific needs of our customers in food, beverages, and animal feeds. These efforts have bolstered our results, despite challenges in certain sectors with constrained margins. We are beginning to reap the rewards of our proactive measures aimed at enhancing performance, and we anticipate further improvements as the year progresses.

Threats:

The industry confronts significant challenges related to its primary raw material, maize, which is an agricultural product. The availability and price of maize are highly volatile due to its cultivation being influenced by natural factors. Because the industrys raw materials are agricultural, they are susceptible to price fluctuations and production uncertainties. Additionally, the sector faces increasing competition.

Further exacerbating these issues, the price of maize and other input costs may rise due to the monsoon, potentially impacting industry margins. Factors contributing to restrained growth include unstable raw material supply, competitive pressures from bio-energy demands, and the interplay between oil prices and agricultural raw materials.

C. Segment Wise or Product-Wise Performance:

The Company is engaged in developing, manufacturing and distribution of Maize Starch Powder,

Dextrose Anhydrous, Starch, White Dextrin, Yellow Dextrin as its main products and its byproducts in local as well as international market.

Product-Wise Performance: The Revenue from operation of the company for the current year is Rs. 36325.96 Lacs, bifurcated as follows:

Product	Amount Rs. in Lakhs
1. Dextrose	0.00
2. Starch	26357.14
3. Byproducts	9549.98
4. Scrap / Waste	418.04
5. Export Incentive	0.80
TOTAL	36325.96
Geographical Wise Performance:
Product	Amount Rs. in Lakhs
1. Domestic	36265.80
2. Exports (including incentive)	59.36
TOTAL	36325.16

D. Outlook:

The Company remains highly optimistic for the upcoming years, actively expanding its domestic footprint and exploring new global business opportunities. This growth trajectory is strongly supported by the robust expansion strategies outlined by our key B2B customers, signaling a sustained demand pipeline for our products.

However, the global operational landscape faces heightened risks from shifting geopolitical realities. Beyond the historical economic impacts of the Russia-Ukraine war, emerging global frictions such as escalations involving the USA and Iran, or regional tensions between India and Pakistan pose structural threats to supply chains, driving up international freight, energy costs, and global commodity indices. To effectively insulate our margins from these external shocks and domestic input cost pressures, the Company is aggressively implementing internal efficiency measures. These include deep process optimization, plant-level cost containment, tighter supplier negotiations, and the exploration of cost-effective agro-input alternatives. Our ultimate goal is to maintain a strategic balance between safeguarding corporate profitability and preserving deep-rooted customer loyalty for sustainable, long-term success.

E. Risks and Concerns:

Agricultural production and trade flows are influenced by various governmental policies, mandates, and regulations. These include taxes, tariffs, duties, subsidies, incentives, foreign exchange rates, and import/export restrictions on agricultural commodities and products. These factors impact decisions such as crop selection, production locations and sizes, trade of processed or unprocessed commodities, import and export volumes and types, availability and competitiveness of feed stocks, and industry profitability.

The Companys operational outcomes may also be affected by changes in other governmental policies, mandates, and regulations, encompassing monetary, fiscal, and environmental policies, as well as laws, regulations, acquisition approvals, and governmental and agency activities. These risks include shifts in economic or political conditions within countries or regions, local labor conditions and regulations, reduced intellectual property protection, alterations in regulatory or legal environments, constraints on currency exchange activities, fluctuations in currency exchange rates, burdensome taxes and tariffs, enforceability of legal agreements and judgments.

The Company faces the risk of price fluctuations in raw materials, dyes, chemicals, work-in-progress, and finished goods. To mitigate raw material price risks, the Company manages its commodity price exposure by maintaining adequate inventories of raw materials, dyes, chemicals, work-in-progress, and finished goods, taking into account anticipated price movements. Additionally, the Company collaborates with various raw material suppliers to optimize costs, enhance application flexibility, and improve product functionality through investments in product development and innovation.

Furthermore, the Company is exposed to risks such as technology risks, supply chain disruptions, evolving consumer demands, environmental considerations, competition, government regulations, legal mandates, and foreign policy, all of which can impact profitability and operations.

F. Internal Control Systems and their adequacy:

The Company maintains a robust internal control system designed to safeguard assets, monitor transactions effectively, and prevent unauthorized use or disposal. The Company has appointed a firm of Chartered Accountants as Internal Auditors and has an effective internal control system to ensure that all the transactions are properly executed and recorded. The systems are also reviewed by the management, statutory auditors and audit committee of the Company to ensure efficiency and transparency in the operations of the Company. The system is also in place to ensure that all applicable statutory and legal formalities are complied with.

The management of company has the responsibility for establishing and maintaining internal controls for financial reporting, to evaluate the effectiveness of internal control systems of the company pertaining to financial reporting and they have to disclose to the auditors and the Audit Committee, deficiencies in the design or operation of such internal controls, if any, of which they are aware and the steps they have taken or propose to take to rectify the deficiencies.

G. Discussion on financial performance with respect to operational performance:

During the year under review, the Companys total Revenue was Rs. 36599.12 Lakh as compared to the total Revenue of Rs. 39023.55 Lakh for the Financial Year ended 31^st March, 2025 and Company reported a Profit of Rs. 658.04 Lakh as compared to a Profit of Rs. 753.74 Lakh for the Financial Year ended on 31^st March, 2025.

	Standalone	Consolidated
Particulars	F.Y. 2025-26	F.Y. 2024-25	F.Y. 2025-26	F.Y. 2024-25
1. Total Revenue	36599.12	39023.55	36599.12	39023.55
2. Total Expenses	35704.94	38005.29	35717.10	38006.14
3. Profit Before Tax	894.18	1018.26	882.02	1017.40
4. Tax Expenses
i. Current Tax	172.18	177.90	172.18	177.90
ii. Deferred Tax	63.96	86.62	63.96	86.62
5. Profit After Tax	658.04	753.74	645.88	752.89
6. Carried to Balance Sheet	658.04	753.74	645.88	752.89

H. Material Developments in Human Resource and Industrial Relations front:

Caring for its people is fundamental to the Company, which views its employees as its most valuable assets. Continuous efforts are made to enhance human resource skills, competencies, and capabilities, essential for achieving our strategic business goals. The Company has successfully fostered a cohesive, people-centric culture that has cultivated a diverse pool of intellectual capital.

Dedicated to empowering its employees, the Company initiates various programs and activities aimed at personal and professional growth. A team of experienced professionals supports plant and allied operations, bringing critical technical expertise and experience necessary for timely decision-making and implementation. Recruiting qualified personnel and retaining experienced staff are priorities to maintain a robust talent pool. The Company diligently ensures effective recruitment and retention strategies to prevent any gaps in talent.

Employees are encouraged to take ownership and accountability for their roles, fostering a culture of responsibility. In addition to human resource development, the Company provides comprehensive welfare measures for employees and their families. Positive industrial relations within the factory contribute to building a strong team across different levels, characterized by valuable experience and skills.

The cornerstone of the Companys approach to human resource development is that skilled and motivated personnel are crucial for achieving business objectives. Policies are crafted and implemented with this aim in mind. Throughout the year, industrial relations were harmonious across all locations, with no working hours lost due to labor disputes. As of 31^st March, 2026, the Company employed a total of 332 personnel.

I. Changes (Change of 25% Or More) in significant key financial ratios and return on net worth:

The details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with the detailed explanations thereof, are as follows:

Particulars	31.03.2026	31.03.2025	% Change in Ratio	Reason for significant change
1 Debtors Turnover Ratio	10.48	9.86	6.25	-
2 Inventory Turnover Ratio	8.51	8.48	0.33	- It is decrease due to decrease in earnings and due to repayments obligations during the year
3 Debt- Service Coverage Ratio	0.42	0.97	(56.66)
4 Current Ratio	0.86	0.95	(9.56)	- It is decrease due to decrease in debts during the year
5 Debt-Equity Ratio	1.64	2.24	(26.71)
6 Operating Profit Ratio	4.53	4.44	2.03	-
7 Net Profit Ratio	0.02	0.02	(7.18)	-
8 Return on Net- worth/Equity Ratio	0.10	0.12	(17.08)	-
9 Trade Payables Turnover Ratio	14.87	23.43	(36.51)	Increase in purchase and increase in trade payables
10 Net Capital Turnover Ratio	(31.32)	(80.30)	(60.99)	Due to decrease in sales and decrease in working capitals
11 Return on Capital Employed	0.11	0.15	(28.59)	Due to decrease in earnings
12 Return on Investment	0.06	0.08	(25.92)	Due to decrease in fair value gain

J. Cautionary Note:

The Management discussion and analysis report includes forward-looking statements based on available Company data and assumptions regarding economic conditions, government policies, and other factors. The Company cannot guarantee the accuracy of these assumptions or predict its future performance with certainty. Therefore, actual results, performance, or achievements may differ materially from those projected in such forward-looking statements. The Company does not undertake any obligation to publicly update, modify, or revise any forward-looking statement based on subsequent developments, information, or events.

Investors are advised that this discussion includes forward-looking statements that entail risks and uncertainties, such as those inherent in the Companys growth strategy, reliance on specific businesses, and availability of qualified manpower, among other factors discussed. It is recommended to review this discussion and analysis alongside the Companys financial statements and accompanying notes.

DISCLOSURE OF ACCOUNTING TREATMENT:

The financial statements of the Company have been prepared in accordance with the Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013, read with the Companies (Indian Accounting Standards) Rules, 2015 (as amended), and other relevant provisions of the Companies Act, 2013, as applicable. The accounting policies have been consistently applied and are in line with those adopted in the previous financial year. There have been no deviations in the accounting treatment prescribed under the applicable Ind AS or any other regulatory requirements.

	For and on behalf of the Board
	Tirupati Starch & Chemicals Limited
	Sd/-	Sd/-
	Amit Modi	Prakash Chandra Bafna
Place: Indore	Managing Director	Chairman & Whole-Time Director
Date: 14.08.2026	DIN: 03124351	DIN: 00107070