Unique Organics Ltd Management Discussions

Your directors are glad to present below the management discussion and analysis for the year 2025-26:

Overview of the Industry Structure and Developments:

The agriculture sector continues to be the largest source of livelihood in India, positioning the country among the worlds top producers of agricultural and food products. According to the Economic Survey 2025-26, agricultural growth remained stable during the first half of FY 2025-26, with the second quarter registering a 3.5% growth rate?an improvement over the previous four quarters. India continues to cultivate a diverse mix of food grains, cereals, and other crops, contributing significantly to the global agri-food supply.

According to the data released by the Ministry of Commerce & Industry, Government of India, Indias agricultural exports increased from approximately USD 51.12 billion in FY 2024-25 to USD 52.55 billion in FY 2025-26, registering a growth of around 2.8%. Despite global uncertainties and trade disruptions, India maintained a positive agricultural trade balance, supported by strong export performance in cereals, spices, processed foods, marine products, and animal nutrition-related commodities. The continued resilience of the agricultural sector presents favorable opportunities for companies engaged in agri-products, food commodities, spices, and animal nutrition solutions. Source: Ministry of Commerce - Trade Statistics

The Indian animal feed market size was valued at INR 1,186.30 Billion in 2025 and is projected to reach INR 2,112.96 Billion by 2034, growing at a compound annual growth rate of 6.6% from 2026-2034. Source: https://www. imarcgroup.com/indian-animal-feed- market

The primary destinations for Indias agricultural exports include Bangladesh, UAE, USA, Vietnam, Saudi Arabia, Nepal, Malaysia, and Indonesia.

Looking ahead to FY 2026-27, the outlook for the agricultural and allied sectors remains cautiously optimistic, supported by improving demand conditions, government initiatives for agriculture and exports, and expectations of a favourable monsoon. The animal feed and agri-commodity sectors are expected to benefit from continued focus on livestock productivity, dairy development and rural demand.

However, fluctuations in raw material prices, changing global trade dynamics and dependence on monsoon conditions continue to remain key factors influencing sector performance.

The management of the Company remains focused on strengthening its presence in existing markets, identifying new business opportunities and improving operational efficiency across domestic and export segments. With prudent planning and a diversified product portfolio, the Company remains optimistic about sustaining growth momentum during the coming financial year.

UOL Business:

During the year under review, export sales contributed major role in source of income in total revenue of the Company. The export activities were focused on broadly on cereals, animal feed ingredients whereas domestic activities were focused on cattle feed and other animal nutritional products. Cereals and feed ingredients were the major contributor the export sales during the year under review. Your Company identified the demand of above products and has been focusing on its exports mainly on these. Further, your company is working to identify more such high demand products and is hopeful of developing a good market base on international level.

This year, the total revenue of the Company decreased by 29% compared to the previous year. Export turnover of the Company decreased by 30% compared to the previous year. This shortfall in exports is primarily due to changes in tax policies ,changes in exchange rates and tariffs in other countries, as well as the ongoing war situations.

India exported around 20.1 million metric tonnes of rice in FY 2024-25, valued at nearly USD 12.95 billion, making India one of the worlds largest rice exporters.

As illustrated in the above chart, rice continued to dominate Indias cereals export basket during FY 2025-26, with export volumes reaching approximately 21.5 million metric tonnes, driven by strong global demand and the easing of export restrictions.

Maize exports were estimated at around 2.4 million metric tonnes, supported by improved domestic production, competitive pricing, and increasing demand from key international markets.

Other cereals, including barley, sorghum, and millets, collectively contributed approximately 3.6 million metric tonnes to Indias export performance. Growing awareness regarding nutritional grains and expanding market access supported exports in this segment.

The overall performance of the cereals sector reflects Indias strong agricultural production base, enhanced supply chain efficiencies, and its increasing role as a reliable supplier in the global food grain market. The sector is expected to continue benefiting from favourable demand trends and government initiatives aimed at promoting agricultural exports.

During the financial year ended March 31, 2026, the Company recorded total revenue of ?10,836.72 Lakhs. While overall revenue moderated compared to the previous financial year, the domestic

Company also manufactures nutritional supplements including vitamins and calcium products for these animals. Among these products, toxin binders witnessed significant demand in international markets during the year under review.

Manufacturing segment registered growth, reflecting the Companys continued focus on strengthening its core business operations and improving revenue mix.

The Company maintained financial discipline through effective cost optimization measures, resulting in lower overall expenses during the year. Despite market challenges, the Company reported a Profit Before Tax (PBT) of Rs. 1,087.38 Lakhs, supported by operational efficiencies and improved foreign exchange gains. The Company remains focused on strengthening its manufacturing base, prudent cost management and long-term sustainable growth.

The export activities were majorly focused on cereals, animal feed ingredients whereas domestic activities were focused on cattle feed and feed supplement & other animal nutritional products. Rice, Maize, Soybean Meal/Extractions and, Barley, RSM and De-oiled Rice Bran were the major contributor to the export sales during the year u nder review.

Our management has been continuously working to identify and select new products and markets. We are also focusing on developing new markets in Gulf and Middle Eastern countries. Further, the management anticipates good volume of business in year ahead.

Opportunities:

The advantage of your company is its 34 years of experience in the sector of agricultural produce exports that has created a trust among its customers worldwide. The management policies are aimed at satisfying the requirements of the present customers while adding on new pool of customers, products and markets. The company is continuing to manufacture and supply cattle feed and animal feed supplements under the brand name ROHINI with an aim to tap the domestic market and diverse its portfolio.

The Companys product portfolio includes feed products primarily for cattle, along with other ruminants such as goats, camels and horses.

Further, the Company expanded its product basket with the launch of new products such as Binola Khal, Calf Starter and Transition Feed.

As part of its business expansion strategy, the Company plans to introduce grains such as maize and non-basmati rice in the Sri Lankan market. Apart from these products, the Company also intends to introduce poultry feed along with animal nutritional supplements such as toxin binders, mineral mixtures and bypass proteins to cater to the growing demand in the livestock and poultry sectors. In the Gulf countries, the Company sees export opportunities in maize, soybean, barley and green millets. Additionally, the Company is exploring export opportunities for spices in European markets.

Strengths Driving Future Growth

Your Company is optimistic about its future growth in both domestic and international markets, based on the following strengths:

• Visionary leadership and a dedicated team focused on results.

• Ethical and transparent business practices aligned with long-term strategy.

• A robust buyer and seller network, enhancing competitiveness.

• Reputation for quality and trust among global customers.

• In-house manufacturing and quality testing facilities to ensure seamless service and product integrity.

• Continuous efforts in exploring new markets for food and feed products.

Risks and Industry Challenges

Given that the Companys core business lies in agricultural products, it remains inherently exposed to several unpredictable and uncontrollable risks that may significantly affect its performance:

• Climatic conditions, including monsoons and weather variability.

• Government export policies and changes in fiscal regulations.

• Price fluctuations in agricultural commodities and currency exchange volatility.

• Global and local demand-supply dynamics.

• Shifts in purchasing behavior and pricing trends.

• Geopolitical developments, both domestic and international.

• Foreign trade policies of India and importing countries.

• Currency fluctuations and trade restrictions.

The performance of your Company must be assessed in the context of these external political, economic, and market conditions, which are beyond its control but integral to its strategic planning and risk management.

Segment-wise performance:

a) Business (Primary) Segment

The Companys business operations are structured around two core segments?Manufacturing Activities and Trading Activities. The performance of each segment is regularly evaluated by the management to ensure efficient utilization of resources and to support business growth and operational effectiveness.

The reportable business segments of the Company are as follows:

• Manufacturing Activities

• Trading Activities

Revenue and expenses directly attributable to segment are reported under each reportable segment. Expenses which are not directly identifiable to each reporting segment have been allocated on the basis of associated revenue of the segment and manpower efforts. All other expenses which are not attributable or allocable to segments have been disclosed as unallocable expenses.

The companys financing and income taxes are managed on a company level and are not allocated to operating segment.

Refer Note-32 to P&L for more details.

b) Geographical (Secondary) Segment

i. The company primarily operates in India and overseas and therefore the analysis of geographical segment is demarcated into its Indian and Overseas operations as under:

Particulars/ Revenue (Gross Sales)	F.Y. 2025-26 (Lakhs)	F.Y. 2024-25 (Lakhs)
India	4675.18	6490.10
Overseas	5856.30	8366.05
Total	10531.48	14856.15

Refer Note-32 to P&L for more details.

ii. Non-Current Assets: All non-current assets other than financial instruments of the company are located in India.

Outlook:

Business Environment, Risk Outlook, and Mitigation Strategy:

The business environment continues to present a dynamic mix of opportunities and challenges, encompassing potential gains as well as inherent risks. In a liberalized and competitive market, macroeconomic fluctuations and sector-specific factors are often beyond the Companys control. However, to navigate these uncertainties, the Company actively engages in market research, trend analysis, and forecasting techniques to anticipate risk scenarios and implement proactive mitigation strategies.

The management remains optimistic about continued growth in both the export and domestic markets. With focused efforts on expanding product offerings and geographic reach, the Company is positioning itself to capitalize on emerging market demands. At the same time, we are committed to adopting a balanced and cautious approach to risk, ensuring sustainable growth with minimal exposure to external shocks.

Our Internal Audit Controls and Risk Management Policies are consistently reviewed and updated to reflect evolving market dynamics and ensure compliance, agility, and resilience in our operations.

Risks and Concerns:

In the normal course of business, the Company is exposed to a broad spectrum of risks, including but not limited to:

• Commodity price fluctuations at national and global levels

• Foreign exchange volatility

• Shipping & logistics disruptions

• Legal and regulatory changes

• Market and credit risks

• Liquidity challenges

• Changes in government trade and fiscal policies Given the volatile pricing environment and overall market liquidity concerns, the risk of customer defaults?both domestic and international? remains elevated. To address this, the Company has implemented stringent buyer verification protocols and has adopted trade credit insurance policies to safeguard receivables and minimize credit exposure. To effectively identify and respond to such risks, the Company has established a comprehensive Risk Management Policy. This policy outlines:

• Standards for assessing potential risks

• Evaluation of risk probability and impact

• Action plans for timely mitigation and control The policy also mandates periodic reviews of operational areas, enabling the management to take informed decisions and adjust strategies to minimize the impact of known and emerging risks.

Internal Control System and their adequacy:

Our organization operates on a foundation of strong ethics and professionalism. To address the complexities of business development, we have established internal frameworks that facilitate task completion in a professional manner. Each member of our team has clearly defined roles, which are regularly reviewed and monitored as per the given environmental factors.

We have implemented an Internal Audit Control system designed to assess and enhance the effectiveness of risk management and governance practices. This system ensures adherence to established standards, thereby improving organizational performance and providing a competitive advantage by minimizing avoidable costs.

Financial and Operational Performance:

During the year under review, the Company recorded total revenue of ?10,836.73 lakhs as against ?15,123.34 lakhs in the previous financial year, reflecting a decline of 28.34%. The reduction in revenue was primarily attributable to a significant decline in export turnover during the year. However, the Company continued its strategic focus on strengthening core business operations and diversifying beyond trading-led income streams.

The domestic manufacturing segment registered encouraging growth of 15%, reaching ?1,734.00 lakhs, reflecting strengthening operational capabilities and a gradual shift towards a more balanced revenue mix. While export and domestic trading continued to remain key contributors to revenue, manufacturing operations gained momentum during the year.

The Companys other income continued to support its financial performance during FY 2025-26. Foreign exchange gains increased to ?138.79 lakhs as compared to ?136.23 lakhs in the previous year, reflecting effective management of foreign currency exposures. Interest income stood at ?123.25 lakhs during the year. However, other receipts declined to ?1.79 lakhs from ?3.59 lakhs in the previous year. Despite the reduction in other receipts, the overall contribution from other income sources remained supportive of the Companys earnings.

The Company continued to maintain financial discipline through effective cost optimization measures, resulting in improved operational efficiency and strengthening the foundation for sustainable long-term growth.

Human Resources:

Company strongly belief that employees are the assets of the company, your company is committed for proper utilization of its human resources with an aim to achieve professional excellence and sustainable mutual growth.

Cautionary Statement:

Statements made in “Management Discussion & Analysis" describing projections, companys objectives and planning may be somewhat forward looking within the meaning of applicable laws and regulations. The Actual results might differ depending upon prevailing trends, international business scenario, government policies, demand and availability of products and government support by means of direct or indirect assistance for export of products from time to time.

Acknowledgement:

Your directors express their sincere thanks to Central and State Government departments, Banks, foreign buyers, suppliers and all stakeholders for their cooperation and encouragement they always extended to the company and look forward for their continued support. For the continuous support and meticulous efforts of Dealers, Business Associates and employees in ensuring an all-round improved operational performance, your directors wish to place on record their sincere thanks and appreciation.

By order of the Board of Directors of Directors
For Unique Organics Limited
Sd/-	Sd/-
Jyoti Prakash Kanodia	Madhu Kanodia
DIN:00207554	DIN:00207604
Managing Director	Director
Jaipur, August 10, 2026
Registered Office:
E-521, Sitapura Industrial Area,
Jaipur-302022 (Raj.) India
Phone No. +91 141 2770315/509
Email: compliance@uniqueorganics.com
CIN:L24119RJ1993PLC007148