Vijay Solvex Ltd Management Discussions

1. This section shall include discussion on the following matters within the limits set by the listed entitys competitive position:

INDUSTRY STRUCTURE AND DEVELOPMENTS

The edible oil industry is one of the most significant segments of the Indian food processing sector and plays a vital role in ensuring the countrys food security. India continues to be one of the largest consumers and importers of edible oils, with domestic demand being met through a combination of indigenous production and imports, particularly of palm, soybean and sunflower oils. The industry is influenced by factors such as agricultural production, global commodity prices, import policies, exchange rate fluctuations, geopolitical developments, climatic conditions and changes in consumer preferences.

India is a geographically and culturally diverse nation, and consumer preferences for edible oils vary significantly across regions. Edible oils are an integral part of daily diets across households and the food processing industry. Derived from various plant sources, they are widely used for cooking, frying and as key ingredients in packaged foods. Rising population, changing dietary habits and growing awareness of cooking oil quality continue to drive demand.

The Indian edible oil market reached 25.33 Million tonnes in 2025 and is projected to grow to 28.34 Million tonnes by 2034, at a CAGR of 1.26% (2026-2034). Growth is supported by rising disposable incomes, greater health awareness, increasing demand for packaged and branded oils, a robust food processing sector, evolving preference for healthier oils, and government initiatives such as the National Mission on Edible Oils. Expansion of organised retail and e-commerce is further improving product accessibility across urban and rural markets.

Despite strong consumption, India remains significantly import dependent. According to the Indian Vegetable Oil Producers Association (IVPA), domestic edible oil production is estimated at 9.6 Million tonnes in the 2025-26 marketing year, while imports are expected to reach 16.7 Million tonnes, meeting nearly 60% of domestic demand. Soybean oil is primarily imported from Argentina and Brazil, while palm oil is sourced mainly from Malaysia and Indonesia.

Over the years, advancements in modern refining technologies — including physical refining, bleaching, and deodorization — have transformed the edible oil industry by rendering oils practically colorless, odorless, and tasteless. These developments have facilitated greater interchangeability among oils across culinary applications and contributed to the emergence of a more integrated and homogeneous national edible oil market.

The Government of India has continued to place strategic emphasis on enhancing domestic oilseed production in order to reduce import dependency and strengthen food security. In this direction, the Government has substantially increased the Minimum Support Prices (MSP) for major oilseed crops including mustard, groundnut, soybean, sunflower, and sesame. The enhanced MSP regime is expected to incentivize farmers to increase acreage under oilseed cultivation, improve domestic availability of oilseeds, and support the long-term objective of reducing dependence on imported edible oils.

Looking ahead, the long-term outlook for the edible oil industry remains positive, supported by favourable demographic trends, increasing per capita consumption, growing food processing activities, rising health awareness and continued government support for domestic oilseed production. Although short-term volatility in commodity prices and global market conditions may continue, the industry is expected to witness sustained growth over the medium to long term, providing significant opportunities.

II. OPPORTUNITIES AND THREATS

The edible oil industry in India continues to offer significant growth opportunities, supported by favourable demographic trends, increasing disposable incomes, urbanization and rising per capita consumption of edible oils. Growing awareness regarding food safety, hygiene and nutrition is driving consumer preference towards branded and packaged edible oils, thereby creating opportunities for organized players.

Consumer awareness regarding health and nutrition has emerged as a significant growth driver for the industry. Increasing incidence of cardiovascular diseases, obesity, diabetes, and lifestyle-related disorders has accelerated demand for healthier and nutritionally-enhanced edible oil variants, including cold-pressed oils, rice bran oil, canola oil, olive oil, and fortified oils enriched with vitamins, omega-3 fatty acids, and natural antioxidants.

The Governments continued focus on enhancing domestic oilseed production through various agricultural and policy initiatives are expected to improve raw material availability over the long term and reduce dependence on imports. Increasing investments in food processing, organized retail and e-commerce platforms are further expanding market access and strengthening distribution channels.

The growing demand from institutional consumers, hotels, restaurants, catering establishments and food processing industries is expected to contribute to sustained demand for edible oils. Consumer preference for healthier cooking oils, fortified edible oils and value-added products also presents opportunities for product diversification and market expansion.

The edible oil industry in India is a vital component of the agricultural and food processing sectors. The industry is characterized by a significant dependence on imports, which makes it vulnerable to global price fluctuations and supply chain disruptions.

The dependence on imports has significant implications for the edible oil industry in India. Fluctuations in global prices and changes in international trade policies can have a direct impact on the availability and affordability of edible oils in the domestic market. The governments policies, such as import duties and tariffs, play a crucial role in managing this dependence and ensuring price stability for consumers.

Several factors constrain the domestic production of edible oils in India. These include limited availability of high yielding oilseed varieties, inadequate irrigation facilities, and fragmented land holdings. Additionally, the oilseed processing industry faces challenges related to outdated technology and infrastructure, which hamper productivity and efficiency.

Intense competition from organized as well as unorganized market participants continues to exert pressure on pricing and profitability. Rising transportation, packaging, energy and logistics costs may also affect operating margins if such increases cannot be fully passed on to customers.

The adoption of advanced manufacturing technologies, automation, efficient supply chain management and digital marketing initiatives provides opportunities for improving operational efficiency, reducing costs and enhancing customer reach. In addition, favourable long-term economic growth prospects and increasing consumption patterns are expected to support the continued growth of the edible oil industry.

III. SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

Edible Oil Division

The Edible Oil business continues to account major part of the Companys turnover. The market environment continuous to be very competitive. The Companys products are well accepted in national market under the various brand names. Your company is leading regional player in edible oil and Vanaspati, backed up with strong distribution network. Your Company faces intense competition from low priced and unscrupulous brands. The outlook of the industry is positive looking to the size of opportunity. The Company is hopeful that there would be healthy market growth over the next few years.

Ceramic Division

Your Companys ceramic division sale performance during the year is Rs. 2255.33 lacs. Companys ceramic products are well accepted in India. Your Company is hopeful of a healthy growth both in volume and value over next few years.

Wind Power Division

During the period under review, Wind Power Generation plant of the Company located at Village Hansua, District Jaisalmer, Rajasthan was not in operation as the segment is not financially viable to run. However, the effect of this segment is very marginal on overall revenue of the Company.

IV. OUTLOOK

Indias edible oil industry is marked by a dichotomy between high consumption and low domestic production. The country produces a variety of oilseeds, including soybeans, groundnuts, rapeseed, mustard, and sunflower. However, the production of these oilseeds is often insufficient to meet the domestic demand for edible oils. As a result, India imports a substantial portion of its edible oil requirements, primarily from countries like Indonesia, Malaysia, and Argentina.

Edible oils are not just an essential commodity but a cornerstone of the Indian diet, providing the most significant source of fats for human nutrition. India, with its diverse agro-climatic conditions and culinary traditions, produces and consumes a wide range of edible oils. The industry holds immense importance, catering to both the nutritional needs of the population and the economic fabric of the nation.

Indias edible oil industry is expected to maintain a strong long-term growth trajectory, supported by favorable demographic trends, rising urbanization, increasing disposable incomes, and growing health consciousness among consumers.

The Government of Indias National Mission on Edible Oils (NMEO) framework represents one of the most comprehensive and well-funded policy initiatives undertaken to reduce structural dependence on imported edible oils. The combined outlay under NMEO-Oilseeds and NMEO-Oil Palm exceeding 21,000 crore aims to substantially increase domestic oilseed production and meet nearly 72% of Indias edible oil demand domestically by 2030-31. Successful implementation of these initiatives is expected to structurally strengthen Indias edible oil ecosystem, reduce exposure to global commodity market volatility, and improve long-term income sustainability for oilseed farmers.

Further, increasing investment in research and development of high-yielding and climate-resilient oilseed varieties, including genome-editing-based seed technologies supported under NMEO-Oilseeds, is expected to improve agricultural productivity and long-term supply stability.

The Union Budget 2025-26 further strengthened the Governments "Atmanirbhar Bharat" vision through enhanced allocations for oilseed development, launch of a National Mission on High-Yielding Seeds, and creation of over 600 value-chain clusters across 347 districts covering more than 10 lakh hectares annually through Farmer Producer Organisations (FPOs), cooperatives, and public-private partnerships.

Further, the Governments increase in Minimum Support Prices (MSP) for major oilseeds including mustard, groundnut, soybean, and other oilseed crops is expected to encourage higher cultivation, improve farmer income stability, and enhance domestic availability of oilseeds over the medium to long term. The Governments policy measures aimed at promoting domestic oilseed production, together with the prevailing import duty structure on crude edible oils, are expected to provide a relatively supportive environment for domestic refiners and oilseed processors.

The sector has been steadily expanding, achieving a Compound Annual Growth Rate (CAGR) of 5% over the past decade. With production projected to increase further, its growth trajectory remains strong and promising.

V. RISK AND CONCERNS

The Indian edible oil market faces significant risks and concerns including high import dependency, price volatility, and potential health issues. India relies on imports for a large portion of its edible oil supply, making it vulnerable to global price fluctuations and trade disruptions. Additionally, the market grapples with concerns about adulteration, quality control, and the environmental impact of palm oil production.

VI. INTERNAL CONTROL SYSTEMS & THEIR ADEOUACY

Companys internal control systems are commensurate with the nature of its business and the size and complexity of its operations. These systems are designed to ensure that all the assets of the company are safeguarded and protected against any loss and that all the transactions are properly authorized recorded and reported.

The company has an internal audit function, which is empowered to examine the adequacy and compliance with policies, plans and statutory requirements. It is also responsible for assessing and improving the effectiveness of risk management, control and governance process.

VII. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the period under review, on standalone basis, your Company has achieved a Total Revenue from Operations of Rs. 2,36,623.30 Lakhs as against Rs. 1,83,073.01 Lakhs in the previous financial year. The Profit before Finance Cost, Depreciation and Tax is Rs. 3,621.60 Lakhs, Profit after Tax is Rs. 1,879.56 Lakhs and Total Comprehensive Income is Rs. 1,881.32 Lakhs as compare to Rs. 2,853.46 Lakhs, Rs. 1,837.23 Lakhs and Rs. 1,833.79 Lakhs respectively in the previous financial year. During the year the Total Revenue from Operations and Profit after Tax of the Company has increased by 29.25% and 2.30% respectively, which shows the sustainable growth of the Company.

VIII. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

The Company considers its human resources as the cornerstone. Congenital and safe work atmosphere, appropriate recognition and rewards, constant communication, focus on meeting customer needs and change management through training are the hallmarks for development of human resources of the company. Every employee is aware of the challenges posed by the current economic environment. Employee morale has remained high even during difficult times. The employees have co-opted fully with the management in implementing changes as required in the market. There were 141 permanent employees on the rolls of the Company as on 31st March 2026.

IX. DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS ALONG WITH DETAILS EXPLANATIONS

Ratios	2025-26	2024-25	% Change
Debtors Turnover	85.12	80.25	6.07%
Inventory Turnover	15.70	19.93	(21.22)%
Interest Coverage Ratio	8.35	7.52	11.04%*
Current Ratio	3.05	4.04	(24.50)%**
Debt Equity Ratio	0.34	0.24	41.67%
Operating Profit Margin (%)	1.53	1.56	(1.92)%
Net Profit Margin (%)	0.79	1.00	(21.00)%
Return on Net Worth (%)	6.03	6.26	(3.67)%

*Current Ratio decreased due to an increase in current liabilities during the financial year.

** During the financial year Debt Equity Ratio increased due to increase in debts / borrowings as compare to increase in shareholders fund.

DETAILS OF CHANGES IN RETURN ON NET WORTH

Return on Net Worth decreased marginally from 6.26% in the previous financial year to 6.03% during the financial year under review, primarily because the increase in average shareholders equity was higher than the corresponding increase in profit after tax.

2. DISCLOSURE OF ACCOUNTING TREATMENT

The Financial Statements of the Company for the financial year ended March 31, 2026 were prepared in accordance with the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended and other accounting principles generally accepted in India.

CAUTIONARY STATEMENT

It may please be noted that the statements in the Management Discussion and Analysis Report describing the companys objectives and predictions may be forward looking within the meaning of applicable rules and regulations. Actual results may differ materially from those either expressed or implied in the statement depending on circumstances.

Place: Alwar Date: 14.08.2026

By order of the Board of Directors For Vijay Solvex Limited

(Sachin Gupta) Director DIN: 09696448 3, Manglansar Road, Scheme No. 2, Alwar-301001 (Rajasthan)

(Vijay Data) Managing Director DIN: 00286492 Bhagwati Sadan, Swami Dayanand Marg, Alwar-301001 (Rajasthan)