Virat Crane Industries Ltd Management Discussions

Corporate Overview

Virat Crane Industries Limited (the Company) has been growing decently in Dairy Industry among all categories of people irrespective of income levels and geographical areas in the Ghee products. Your Company now has over 34 years of legacy in the Indian dairy industry.

Your Company has adopted Indian Accounting Standard (Ind AS) notified under Companies (Indian Accounting Standard) Rules 2015 and accordingly the Standalone & Consolidated Financial Statements have been prepared in accordance with Ind AS prescribed under Section 133 of the Companies Act, 2013 read with the Rules made there under.

The Financial statements are prepared in accordance with accounting principles generally accepted in India, including the Accounting Standards notified under the Companies Act, 2013 (the Act) read with Section 133 of the Companies Act, 2013. Your Management accepts responsibility for the integrity and objectivity of the financial statements, as well as for the various estimates and judgments used therein. These estimates and judgments relating to financial statements are prudently made to reflect in a true and fair manner the form and substance of transactions. This also enables in reasonably presenting the Companys state of affairs and profits and cash flows for the year ended March 31st, 2026.

Global Economy

The global economy continues to navigate a complex and uncertain environment, marked by elevated macroeconomic volatility, evolving trade frameworks and persistent fiscal challenges. Despite ongoing geopolitical tensions and financial headwinds, global economic growth remained steady at 3.3% in 2025.

Performance of Major Economies :

Growth in advanced economies stood at 1.7% in 2025, with high-tech investment providing a partial offset. The US economys economic activity faced headwinds from trade barriers but gradually improved, supported by expansionary fiscal policy, resilient consumer spending and a strong labour market. The European Union showed resilience with a steady 1.4% growth in 2025, primarily driven by stable consumer spending and stable labourmarkets. However, higher tariffs and heightened geopolitical tension weighed on export performance. On the other side, China demonstrated positive performance with 5.0% growth in 2025, supported by strong policy measures that bolstered domestic demand and robust exports to non-US markets despite some temporary tariff pressures

Global Industrial Output :

Strong demand for goods produced in emerging markets hassupported steady growth in industrial output during the year. Facto ryproduction in these economies increased by 3.1%, reflecting a notable improvement. In contrast, industrial output in advanced economies grew by 1.3%. As in recent years, emerging markets remained the key contributors to global industrial growth.

Global Inflation Trends and Commodity Markets :

Global headline inflation is expected to decline from an estimated 4.1% in 2025 to 3.8% in 2026, with advanced economies reaching target levels. Commodity prices showed divergent trends because of ample supply and sluggish demand. Global oil prices remained stable throughout the year, primarily driven by improved production levels and easing supply-side constraints.

Global Trade Dynamics and Tariff Developments:

In 2025, a sharp increase in tariffs by the United States triggered trade frictions across global markets, raising trade costs, restricting market access and creating uncertainty across global supply chains. Despite these challenges, global trade demonstrated resilience as economies steadily adjusted to evolving trade patterns and policy changes.

This period of adjustment encouraged businesses and governments to realign supply chains and explore new trade partnerships, creating opportunities for more sustainable and inclusive growth. As a result, global trade expanded by 3.8%, supported by robust merchandise trade and the front-loading of shipments ahead of anticipated tariff changes.

Advanced economies are expected to witness modest output growth of 1.4%, in contrast to stronger growth of 3.7% in emerging markets and developing economies (EMDEs)

Global financial markets and capital flows :

Global financial markets and cross-border capital flows remained vulnerable during the year, with equity markets showing fluctuations across regions and valuations appearing stretched in some economies. At the same time, global debt reached a record high by the end of 2025, due to persistent fiscal deficits in major economies. The US dollar is steadily appreciating, solidifying its leadership in the global financial landscape.

Outlook of Global Economy 2027

The global economic outlook demonstrates resilience and opportunity. Global output is anticipated to grow steadily by 3.3% in 2026 and 2027,with the US maintaining strong momentum and emerging economies exhibiting significant growth potential. Advanced economies,particularly in Europe, are expected to experience moderate growth. Economic policy shifts are likely to drive businesses to adapt, innovate and compete in a rapidly changing global market. Together, these factors will shape a dynamic business environment, strategic planning and resilience across industries

Indian Economy

Overview

India continues to demonstrate strong economic momentum and it is expected to remain the fastest- growing major economy over the next two years, supported by resilient consumption, improving rural demand, expanding services and a growing share of high-value manufacturing in exports, with GDP growth reached 6.2% in FY2026 following 6.5% in FY2025.

Indian Economy -Inflation and Monetary Policy

In FY26, annual inflation declined to 1.7%, compared with 4.7% in the previous year. This moderation

was supported by favourable weather conditions, stable commodity prices, improved supply chains and a sharp fall in vegetable prices. Amid easing inflationary pressures, the Reserve Bank of India reduced

the repo rate by 25 basis points to 6.25% in April, marking the first rate cut of 2025, followed by a further reduction to 5.50% in June. Alongside this, urban unemployment showed signs of improvement in FY2026, reflecting gradual strengthening in the labour market.

Together, these factors are supporting consumption growth, driven by improved liquidity and rising disposable incomes. These developments, combined with rising disposable incomes and increasing urbanisation, are supporting consumption-led growth.

Changing consumption patterns-particularly the shift toward branded, value-added and convenience- driven products-are further strengthening demand across sectors, including FMCG and dairy.

Industry Dynamics

In FY2026, the agriculture sector experienced a growth of 3.5% in Q2, the industry sector expanded by 7% in H1 and the service sector is

anticipated to grow by 9.1%. The core sector had grown by 2.6% from April to December in 2025. India Manufacturing Purchasing Managers Index (PMI) surged to 56.90 in February 2026. This marked a four- month high and signals a notable improvement in operating conditions. The net Goods and Services Tax (GST) collections rose by 7.1% to 1 19.34 lakh crores in the fiscal year 2026, reflecting an increase in economic activity despite global economic challenges

Outlook of Indian Economy

In FY2027, the Indian economy is expected to witness stronger growth compared to the previous year, with real GDP projected to expand between 7% and 7.4%, supported by robust private consumption. While global uncertainties such as economic slowdown and rising protectionist measures could pose risks to growth, Indias ongoing trade engagements are expected to provide a counterbalance. Trade

agreements with key partners such as the United Kingdom, the United States and the European Union are likely to strengthen bilateral trade by improving market access for goods and services. These agreements emphasiselabour-intensive sectors, support the Make in India initiative, enhance export competitiveness and facilitate greater mobility for Indian professionals through simplified access for service providers, business visitors and independent professionals.

Global Dairy Industry

Dairy products represent a resilient and structurally essential segment of the global food industry, underpinned by consistent consumption, strong nutritional relevance and enduring consumer trust. Anchored by milk and supported by a diversified portfolio of value-added products, the dairy sector continues to balance heritage with innovation, adapting to evolving dietary preferences while maintaining its role as a daily staple across demographics.

Operating Landscape in 2025

The global FMCG sector maintained steady growth, driven by population expansion and increasing demand for premium products.

Within this environment, the dairy industry experienced stable demand in mature markets such as the EU and the U.S., alongside continued growth across Asia and Africa.

The European Union led the global dairy market with a 41% share, followed by Oceania at 25%, reflecting strong export positions. New Zealand, the EU and India remained key global exporters.

Off-trade channels accounted for 92.27% of total sales, supported by the expansion of organised retail and e-commerce across markets such as China, India and Japan.

Indian Dairy Industry

Indias dairy sector is more than just an industry-it is a way of life. Deeply rooted in tradition, it carries immense cultural and nutritional significance while simultaneously fuelling the countrys economy. Today, as consumer preferences evolve towards health, sustainability and convenience, the Indian dairy industry is embracing a unique blend of age-old expertise and modern innovation, driving a transformation that touches every corner of the value chain.

Market Dynamics

The Indian dairy market is valued at 1 21,318.45 billions in 2025 and it is expected to reach 1 58,034.06 billions by 2034, growing at a CAGR of 11.77%. This sector is a crucial driver of Indias economy, contributing 5% to the gross domestic product (GDP) and providing livelihoods to over eight crores farmers.

The FY2025 dairy industry faced intermittent supply challenges due to unseasonal rainfall disrupting milk production cycles. Concurrently, strong festive demand tightened market availability, resulting in limited surplus toward year-end. Despite these disruptions, overall milk production remained robust.

India produced 247.87 millions metric tonnes of milk in FY2025, marking a 3.58% increase from the previous year, highlighting the sectors structural resilience. Supply constraints, steady demand and inflation in key inputs such as cattle feed, fodder, energy and logistics increased regional milk procurement costs. However, product prices stayed mostly stable after GST revisions, with only selective regional hikes, which pressured margins across the value chain. India retains the worlds largest dairy base with 303.8 millions bovines, solidifying its global milk production leadership. Liquid milk dominated the market at 65.3% in 2025, with Uttar Pradesh contributing the largest share at 18.7%. Looking forward, fluid milk consumption is projected to rise to 91 MMT in 2025 from 89 MMT in 2024, driven by steady demand growth. Dairy exports reached 113,350 metric tonnes in FY2025, generating US$492.86 millions, with key markets including the UAE, Saudi Arabia, the USA, Singapore and Bhutan.

Consumer preferences continued to evolve, driven by rising health awareness and urbanisation. Demand for dairy-based snacks, functional products, fortified beverages and plant-based alternatives contributed to portfolio diversification.

Growth Projections

The global dairy market was valued at US$ 1,038.6 billions in 2025 and is projected to grow at a CAGR of 4.38%, reaching US$ 1,545.4 billionsby 2034. Growth is supported by urbanisation, health consciousness, technological advancements and favourable policy support. The Asia-Pacific market is

expected to grow from US$ 189.83 billions in 2025 to US$ 249.80 billions by 2031 at a CAGR of 4.81%, driven by rising consumption and a shift toward higher-quality dairy products

The industry is transitioning from volume-led growth to a technology- driven, value-added ecosystem focusing on efficiency, quality and product diversification.

Government Initiatives for the Sector

National Programme for Dairy Development (NPDD)

Launched in 2014, NPDD focuses on strengthening infrastructure for milk production, procurement, processing and marketing through state agencies and cooperatives. The Union Cabinet has approved 1 2,790 crores to support the sectors development.

National Livestock Mission

Supports states in conducting training, workshops and capacity- building programmes to enhance awareness and efficiency in animal husbandry practices.

Bharat Pashudhan Initiative

Introduced by NDDB under the National Digital Livestock Mission, this initiative includes the 12-digit PashuAadhaar, which provides a unique digital identity for livestock to improve traceability, disease control and farmers access to benefits.

RashtriyaGokul Mission (RGM)

Aims to conserve and develop indigenous bovine breeds to enhance milk production and farmer incomes. Implemented under Rashtriya PashudhanVikasYojana (2021-2026) with an outlay of 1 2,400 crores.

Dairy Entrepreneurship Development Scheme (DEDS)

Promotes self-employment in the dairy sector by providing capital subsidies for dairy-related projects through NABARD.

Information Network for Animal Productivity and Health (INAPH)

A digital platform capturing real-time data on breeding, feeding and veterinary services to support monitoring and productivity improvements.

Livestock Health and Disease Control (LH&DC) Scheme

Includes NADCP, LH&DC and PashuAushadhi components, with a total outlay of 1 3,880 crores (FY2025-26), aimed at disease control and affordable veterinary care

Animal Husbandry Infrastructure Development Fund (AHIDF)

A i 15,000 crores fund to boost investments in dairy processing, feed, vaccines and allied infrastructure. The FY2026 budget allocation for the department stands at i 4,840.40 crores.

Future Prospects: The dairy industry is shifting from volume-driven growth to a greater focus on quality, traceability and value addition.

Faster growth in factory-use consumption compared to household demand is strengthening the organised,

branded and processed segment. This trend is driving investments in advanced processing, cold-chain infrastructure and brand differentiation.

While domestic demand remains strong and product diversification accelerates alongside digital adoption, the sector continues to face headwinds from constrained milk supply, rising input costs and ongoing quality control pressures. Continued enhancements in export quality standards and expansion of processing and logistics infrastructure could enable the industry to convert its domestic production leadership into a significant global market share.

Key Demand Drivers

Rising Health Awareness

Consumers are turning to dairy not just for taste, but for nutrition- seeking essential proteins, vitamins and minerals. This shift is driving

demand for value-added offerings.

Consumption Growth

Indias population of 1.44 billions is driving strong demand for dairy, as a large consumer base increasingly prioritises nutritious foods.

Rising incomes are enabling higher spending on wholesome diets, reinforcing dairys central role in everyday nutrition.

Vegetarian Consumer Segment

In India, milk is more than a beverage; it is a vital source of protein for the countrys large vegetarian population. This community plays a key role in sustaining steady demand for milk and a wide variety of dairy products.

Diversified Dairy Portfolio

The dairy industry is moving beyond basic milk, with products like cheese, yoghurt, flavoured milk and probiotic drinks gaining ground- offering better margins while meeting consumers demands.

Digital and Fast-Commerce Growth

The growth of e-commerce and quick commerce is reshaping the dairy landscape, bringing new trends, logistics opportunities and food safety considerations.

Major Segments in the Indian Dairy Sector

Liquid Milk

Indias liquid milk consumption reached 91 MMT in 2025, up from89 MMT in 2024, supported by its growing population and on going improvements in production practices. These factors continue to drive growth in the sector, while the country has set an ambitious target to significantly increase milk output over the next five years.According to the United States Department of Agriculture (USDA)

Foreign Agricultural Service, Indias dairy sector is expected to witness moderate growth in 2026, with the population of milking cows estimated at around 62 millions.

UHT Milk

The market for UHT (ultra-high-temperature) milk in India is experiencing steady growth, driven by rising health awareness among urban consumers. In 2025, the UHT milk market in India reached a volume of 1,468.0 millionslitres and it is poised to grow to 4,148.0 millionslitreses by 2034, with a CAGR of 11.87 % over the period. The increasing preference for convenient, long-shelf-life dairy products underpins UHT milks growing popularity among consumers. With a shelf life of six to nine months, UHT milk offers exceptional convenience while retaining its nutritional quality and taste.

A2 Milk

Rising incidences of lactose intolerance, coupled with increasing health and wellness awareness, are driving global demand for A2 milk. The A2 milk market is expected to grow from US$17.6 billionsin 2025 to US$59.5 billions by 2034, at a CAGR of 13.77 % during the forecast period. Its numerous health benefits-including support for bone and dental health, enhanced muscle strength, blood pressure regulation, promotion of tissue and cell growth and improved nutrient absorption- further driving the market growth.

skimmed Milk Powder

Skimmed milk powder is used in many products like bakery items, dairy foods and drinks-including bread, cakes, chocolates, ice cream, cheese, yoghurt, soups and shakes-which increases its demand, especially in restaurants and commercial food businesses. Indias skimmed milk powder market reached a value of 1 176.7 billions in 2025 and it is expected to grow at a CAGR of 8.7%, reaching 1 386 billions by 2034. Rising health awareness, an increasing preference for nutritious diets and the growing adoption of e-commerce channels are key drivers of this expansion.

Organic Milk

Organic dairy farming in India is witnessing rapid growth as more health-conscious consumers move away from conventional milk due to health concerns. The organic milk market in India was valued at 1 16,095.2 millions in 2025 and it is expected to reach 1 1,14,714.7 millions by 2034, with a growing CAGR of 23.65%. The market expansion is driven by increasing consumer preference for healthier and safer alternatives, alongside the rising incidence of lifestyle-related conditions such as diabetes, hypertension, cardiovascular diseases and obesity. (Sources: PIB, Statista, TheBullvine, IMARC)

Value-Added Products

The value-added dairy segment-including curd, cheese, whey- based beverages and other processed products-is emerging as a key growth driver in Indias dairy sector. Expanding distribution networks are enabling wider market reach for these products, while strongerorganised procurement systems are improving milk collection efficiency and encouraging better farm-level practices. Rising disposable incomes in FY2026 are also a major contributor to support demand for premium dairy products.

Curd

Curd, commonly known as Dahi, is a staple of a balanced diet and suitable for individuals with lactose intolerance. Rich in calcium, vitamin D, protein and phosphorus, curd supports bone health andaids digestion. The Indian curd market was valued at 1 2,001.6 billions in 2025, driven by factors such as population growth, increased health awareness and the products affordability. The market is anticipated to reach 1 5,730.8 billions by 2034, at a CAGR of 12.03% between 2025 and 2034.

Paneer

A staple in Indian cuisine, paneer is a nutrient-rich cottage cheese abundant in protein and calcium, widely used across a variety of dishes. Its soft texture allows it to absorb flavours well, adding to its popularity. Paneer provides essential nutrients that support strong bones and teeth, as well as cardiovascular and neurological health. In 2025, the Indian paneer market was valued at 1 731.4 billions. Driven by growing consumer demand and evolving dietary preferences, the market is expected to reach i 2149.6 billions by 2034, with a CAGR of12.34% over the period.

Cheese

The demand for cheese in India is expanding rapidly, fuelled by the growing influence of Western cuisines. To cater to evolving tastes, manufacturers are introducing a wide range of flavored cheese products for diverse consumer segments.The market was valued at i 128.89 billions in2025 and it is poised to reach 619.88 billions by 2034, registering a CAGR of 19.07%. This growth highlights the increasing consumption of both naturaland processed cheeses, driving significant gains in market value and volume. (https://www.imarcgroup.com/cheese-market-in-india)

Buttermilk

A popular and traditional dairy beverage, buttermilk, also known as chaach, it is made by churning milk. It is thicker and slightly tangier compared to regular milk. In addition to being affordable and widely available, buttermilk is valued for aiding digestion, helping regulate blood pressure and supporting immune health.

In 2025, the Indian buttermilk market was valued at i 228.4 billions and is expected to reach i 1,011.8 billions by 2034, with a growing CAGR of 17.44% from 2025 to 2034. This growth is driven by increasing consumer preference for natural and healthy beverages, broad availability through diverse distribution channels and heightened health awareness.

Flavoured Milk

A favourite among children and working adults, flavoured milk is a dairy beverage made by mixing milk with sugar and popular flavours such as vanilla, chocolate and mango. It serves as a tasty and healthier alternative to carbonated soft drinks. A growing population and wider availability through supermarkets and online platforms are contributing to the increasing demand for flavoured milk in India.

In 2025, the Indian flavouredmilk market was valued at i 76.4 billions and it is expected to grow at a CAGR of 19.11% from 2025 to 2034. The market is poised to reach i 385.5 billions by 2034. The

markets robust growth is also supported by heightened health awareness and rising popularity for dairy- based beverages.

Milk shake

Popular for its rich taste and versatility, a milkshake is a chilled, blended dairy beverage available in numerous flavours, often enhanced with toppings and mix-ins. The Indian milkshake market was valued at 1 8.9 billions in 2025 and it is expected to reach 1 35.6 billions by 2034, with a growing CAGR of 16.10% from 2025 to 2034. Growth is driven by changing consumer preferences and strong demand from the youthdemographic.

Lassi

Renowned for its refreshing and nutritious qualities, lassi is a beverage rich in carbohydrates, proteins, vitamins and minerals, offering an energy boost and aiding quick hydration during hot weather, making it especially popular in summer. The Indian lassi market is expected to reach 1 65.5 billions in 2025, with a CAGR of 16.29% from 2025 to 2034 and to grow to 1 264.9 billions by 2034. Its probiotic content supports the growth of beneficial gut bacteria,

improving digestion and helping alleviate gastrointestinal issues. These health benefits have driven increased consumer demand and market growth in India.

Ice-cream/Frozen Dessert

Ice cream in India is undergoing a remarkable transformation, fuelled by emerging startups introducing innovative flavours to meet evolving consumer preferences. The demand for premium and artisanal ice creams made from high-quality, natural ingredients without preservatives is rising, particularly among Gen Z consumers seeking unique experiences and the upper-middle-class segment willing to invest in premium offerings.

In 2025, the Indian ice cream market was valued at 1 312.76 billionsand it is projected to reach 1 1,192.40 billions by 2034, growing at a CAGR of 16.03% from 2025 to 2034. Growing investor interest, along with the development of advanced cold chain infrastructure featuring temperature-controlled storage, is further supporting the markets sustainable growth. (Sources: IMARC)

Fat Products

Ghee , a purified form of butter, holds a significant place in Indian cuisine and is widely used in traditional medicine and religious rituals. After milk, it remains one of the most widely consumed dairy products in the country. The Indian ghee market is expected to grow at a CAGR of 7.70% between 2026 and 2034, poised to reach from 1 3,774.5 billions in 2025 to 1 7,532.7 billions by 2034.

Growing health consciousness among consumers is driving demand for organic and naturally produced ghee, as people increasingly prefer products free of additives and preservatives. At the same time, the rapid expansion of e-commerce platforms has improved product availability, allowing consumers to access a wide range of ghee offerings, including premium and organic variants.

Butter , in India, is gradually strengthening its position in the global butter trade, signalling a potential shift in international dairy dynamics.

The steady expansion of the countrys organised dairy sector, along with higher farm-gate milk procurement, is improving Indias capacity to supply butter to international markets, particularly in the Middle East, Asia and Africa. Competitive pricing, relatively lower logistics costs and increasing adoption of quality certifications are furtherenhancing Indias prospects as a reliable butter exporter. In 2025, India churned over 7.4 millions metric tons of butter, making it the top butter

Butter is a nutrient-rich dairy product containing niacin, calcium, phosphorus, riboflavin, antioxidants and vitamins A, E, B12 and K.

When consumed in moderation, it can contribute to stronger immunity, improved cardiovascular function, cellular protection and healthy bone development, while also helping reduce the risk of osteoporosis.

The Indian butter market is being supported by rising disposableincomes, shifting food preferences towards Western-style cuisine and greater awareness of its nutritional benefits. Reflecting these trends,the market was valued at 1 104.8 billions in 2025, and it is expected to grow at a CAGR of 15.37% between 2026 and 2034, reachingapproximately 1 393.9 billions by 2034

Key challenges faced by the Indian dairy industry Despite its remarkable growth, the Indian dairy industry faces its fair share of challenges.

Fragmented industry structure : A key issue for the Indian dairy industry is its fragmented structure, leading to supply chain inefficiencies and challenges in scaling up production to meet increasing demand.

- Low milk yields per animal: A major challenge in Indias dairy sector is the relatively low milk yield per animal, particularly in native breeds. Factors include scarce quality feed, traditional practices, insufficient veterinary care, limited high-quality livestock and inefficient breeding programs.

- Inefficient feed and fodder management : Inadequate availability of nutritious feed and fodder, especially during lean season, affects the nutritional status of dairy animals and leads to suboptimal milk production.

- Lack of QA/QC and testing facilities : Quality assurance and testing are vital for dairy safety and quality. Challenges include limited access to testing facilities, weak quality control and inconsistent quality standards, affecting product consistency.

- Resource efficiency : Dairy farming demands Significant resources, such as land, water, feed, andenergy. Inefficiency and unsustainable methods lead to environmental issues like land degradation, water scarcity, and deforestation.

- Transportation and logistics : Transportation and logistical issues hinder dairy distribution, with a shortage of specialized vehicles for perishables leading to quality loss and spoilage.

Company overview

Our company has been a promising company in the Dairy Industry. Your Company now has over 33 years of outstanding journey in the Indian dairy industry.

Strengths

- Low Debt

* Product line - variety of product portfolio

* Cost-effective supply chain

* High product quality

* Committed human capital

* Technological advancements

* Geographical advantage Opportunities

* Greater disposal income -increasing purchasing power

* Increasing quality and standards

* Continued innovation and adoption of advanced technologies to enhance productivity, quality and reduce cost.

Weaknesses

* Dairy sector has a large number of small-scale/unorganized players, leading to fragmentation and inefficiencies.

Threats

* No barriers to entry - leading to emergence new competitors both at local and national level

* Big Competitors - few famous brands also aligned with product portfolio

* Natural disasters and weather related events can affect milk production.

* Adulteration

Segment-Wise or Product-Wise Performance

The primary business segment of your company is Ghee, Cow Ghee, Milk, Curd and Butter Milk.

Durga Ghee : It still remains the most premium brand among the all brands of ghee and its brand name is strongly positioning itself moreand more in the minds of people.It is processed from the buffalo milk.

Durga Cow Ghee : It is a variant of Durga ghee which is processed from cow milk and it also enjoys good amount of demand.

Bhavani Ghee : It is mainly used for the cooking in edible products like sweets,Biryanis and bakery items.It is the product which can be used as the substitute for vanaspathi in making edible products. the demand for this product has been growing significantly.

Kamadhenu cow Ghee :It is used mainly for pooja purposes and the demand for this product has been steadily rising. The companys management has been making efforts to position this product as a brand in this category of products.

Durga Milk :The milk sales are steadily rising. Though the main product is ghee still the management is striving to increase milk sales.

Durga Curd : The curdsalesare also steadily rising. Though the main product is ghee still the management is striving to increase the curd sales as well.

The company has recently introduced Badam Flavoured Milk, Khova, Butter Milk, Panneer with the its premium brand name of Durga.

The company presently significantly operating in Andhara Pradesh, Telangana, Orissa, and expanding its foot prints into Karnataka and Tamilnadu and the company has recently entered into the market of Chhattisgarh.

The company is continuously exploring the opportunity for its products to the new states of Maharashtra, Madya Pradesh and seeking the ways to penetrate into these areas also exploring new demographic areas including the foreign countries.

Launching of New plant made the company its ways to increase its volume for existing products and launch of new products.

Outlook

The Company intends to enhance the quality of its services in locations where it already operates. Being aware of the shifting demographic factors such as changing lifestyles, rising disposable incomes and the transition towards leading healthier lifestyle, the Company is trying to leverage its penetration strategy to expand its consumer base.

Company hopes adding new plant with high technology to its assets base will help cater the demand there by increasing significantly its revenue which in turn results more profits to the company.. It is expanding its value-added product portfolio and capitalizing on the industrys projected double-digit growth. The Companys focus on bolstering demand, expanding its distribution network and boosting its efficiency measures will contribute to sustained growth. Investments in value-added products, milk procurement and marketing campaigns are aligned with the Companys long-term growth aspirations.

(e) Risks and Concerns

Climate, water scarcity and geography Climate change and scarcity of water has been a major threat to the dairy industry as reported earlier. Milk production could go down by 3 million tons over the next three years as the average temperatures rise, creating problems of water scarcity and reduced availability of green and dry fodder for the cattle. Heat and humidity are the factors with largest impact.

Internal Control Systems and Their Adequacy: The Company has a well-defined and documented internal audit & control system, which is adequately monitored. Checks & balances and control systems have been established to ensure that assets are safe guarded, utilized with proper authorization and recorded in the books of account. The Internal control systems are improved and modified continuously to meet the changes in business conditions, statutory and accounting requirements. Your Company has an Audit Committee consisting of three Directors in whom all are Non-Executive and two are independent Directors. The Audit Committee of the Board of Directors and Statutory Auditors are periodically apprised of the internal audit findings and corrective actions taken. The Audit Committee of the Board of Directors reviews the adequacy and effectiveness of internal control system and suggests improvements if any for strengthening them.

Companys performance

During the Year under review revenue from operations for the financial year 2025-26 was Rs.177.48 Crores. Revenue for the F.Y 2024-25 was Rs 139.19 Crores. It was increased by 27.5% over the last financial year. Profit before tax and exceptional items for the financial year 2025-26 was Rs. (7.37) Crores and it was Rs.6.29 Crores in F.Y 2024-25. It was decreased by (217.7%) over last year. Profit after tax for the financial year 2025-26 was Rs.(7.71) Crores and it was Rs.4.66 Crores in F.Y 2024-25 hence It was decreased by (265.45%) over last year. The high raw material prices and increase in other expenses which included mainly rise in advertisement expenses contributed to decrease in profits of the company. The company has improved its revenue significantly even though the company is facing competition from unorganized sector.

Details of significant changes (i.e. change of 25% or more as compared to the previous financial year) in the following key financial ratios along with explanations:

Current Ratio:

Current Assets / Current Liabilities

It was 1.58 times for the financial year 2025-26 and 2.51 times in the previous financial year 2024-25.

Hence, it was decreased by 37.05% in the financial year 2025-26 compared to the previous financial year 2024-25.

Current ratio decreased mainly due to changes in current assets and current liabilities during the year, resulting in a lower level of short-term liquidity as compared to the previous year.

Debt-Equity Ratio:

Total Debt / Shareholders Equity

It was 0.66 times for the financial year 2025-26 and 0.30 times in the previous financial year 2024-25.

Hence, it was increased by 120.00% in the financial year 2025-26 compared to the previous financial year 2024-25.

Debt-equity ratio increased mainly due to an increase in total debt in comparison to shareholders equity during the year.

Debt Service Coverage Ratio:

Earnings available for debt service / Debt service

It was (0.38) times for the financial year 2025-26 and 0.62 times in the previous financial year 2024-25.

Hence, it was decreased by 161.29% in the financial year 2025-26 compared to the previous financial year 2024-25.

Debt Service Coverage Ratio decreased mainly due to lower earnings available for servicing the debt during the year, resulting in reduced debt servicing capacity as compared to the previous year.

Return on Equity Ratio:

Net Profit after Tax / Shareholders Equity

It was (0.13) for the financial year 2025-26 and 0.07 in the previous financial year 2024-25.

Hence, it was decreased by 285.71% in the financial year 2025-26 compared to the previous financial year 2024-25.

Return on Equity Ratio decreased mainly due to the loss incurred during the year as against profit in the previous year, resulting in a negative return on shareholders equity.

Net Capital Turnover Ratio:

Revenue from Operations / Working Capital

It was 8.55 times for the financial year 2025-26 and 5.12 times in the previous financial year 2024-25.

Hence, it was increased by 66.99% in the financial year 2025-26 compared to the previous financial year 2024-25.

Net Capital Turnover Ratio increased mainly due to improved utilisation of working capital in relation to revenue from operations during the year.

Net Profit Ratio:

Net Profit after Tax / Revenue from Operations

It was (0.04) for the financial year 2025-26 and 0.03 in the previous financial year 2024-25.

Hence, it was decreased by 233.33% in the financial year 2025-26 compared to the previous financial year 2024-25.

Net Profit Ratio decreased mainly due to the loss incurred during the year as against profit in the previous year, resulting in a negative net profit margin.

Return on Capital Employed:

Earnings before Interest and Taxes / Capital Employed

It was (0.05) for the financial year 2025-26 and 0.05 in the previous financial year 2024-25.

Hence, it was decreased by 200.00% in the financial year 2025-26 compared to the previous financial year 2024-25.

Return on Capital Employed decreased mainly due to negative earnings before interest and taxes during the year as compared to positive earnings in the previous year.

Details of non-significant changes:

(I.e. change of less than 25% or lessas compared to the previous financial year)

Details of non-significant changes:

(i.e. change of less than 25% or less as compared to the previous financial year)

Inventory Turnover Ratio: Cost of Goods Sold / Average Inventory

It was 12.24 times in the financial year 2025-26 and 13.59 times in the previous financial year 2024-25.

Hence, it was decreased by 9.93% in the financial year 2025-26 compared to the previous financial year 2024-25.

Inventory Turnover Ratio decreased mainly due to changes in cost of goods sold and average inventory during the year.

Trade Receivables Turnover Ratio:

Revenue from Operations / Average Trade Receivables

It was 10.60 times in the financial year 2025-26 and 9.14 times in the previous financial year 2024-25.

Hence, it was increased by 15.97% in the financial year 2025-26 compared to the previous financial year 2024-25.

Trade Receivables Turnover Ratio increased mainly due to improved turnover of trade receivables in relation to revenue from operations during the year.

Trade Payables Turnover Ratio:

Net Credit Purchases / Average Trade Payables

It was 9.28 times in the financial year 2025-26 and 9.91 times in the previous financial year 2024-25.

Hence, it was decreased by 6.36% in the financial year 2025-26 compared to the previous financial year 2024-25.

Trade Payables Turnover Ratio decreased mainly due to changes in net credit purchases and average trade payables during the year.

Return on Investment:

Income generated from investments / Average Weighted Investments : NA Human Resources and Industrial Relations

Your Company has been putting high emphasis on driving an effective and transparent performance culture with an open mindset. This is evident in the way performance is closely tracked and its impact on your Companys financial sustainability monitored. Leaders today provide feedback not only on performance but also on demonstration of Core Values and Leadership skills defined for each layer of Organization hierarchy. Top performers and high achievers are recognized for their exemplary performance as part of the rewards and recognition program. In the year gone by, your Company has focused on functional training programs such as Food Safety and Regulations, Energy Management, Lean Sigma, TQM, Industrial Safety, Your Company provides learning opportunities through facilitator led learning, workshops and experiential learning through projects, programs and assignments.

Your Company has continued to maintain amicable Industrial Relation footprints by focusing on increased worker level engagement through formal and informal communication and training forums. As of 31st March 2026, your Company had 174 employees on its rolls.

Disclosure of Accounting Treatment: Where in the preparation of financial statements, during the year there was no different treatment from that prescribed in an Accounting Standard has been followed, the fact shall be disclosed in the financial statements.