Wardwizard Foods & Beverages Ltd Management Discussions

Global Economy Overaew

The global economy is projected to grow by 3.0% in 2026, followed by a firmer 3.4% in 2027. Growth in both years remains below the 3.5% average recorded across 2024 and 2025, held back by a mid-year conflict in the Middle East, tighter energy markets and renewed caution across trade and investment. On a cumulative basis, the outlook is broadly unchanged from the projections published earlier in 2026.

After steadily receding through 2024 and 2025, global disinflation has stalled. Headline inflation is now expected to average about 4.7% in 2026 before easing to around 3.9% in 2027, with pressures concentrated in energy and food and in commodity-importing economies. Inflation in the United States is projected to remain above target at about 3.6% in 2026 before moderating in 2027, while the euro area and several other advanced economies are expected to see more contained price trends.

Disruption to shipping through the Strait of Hormuz has been the principal channel through which the conflict has affected the wider economy, lifting crude oil to an assumed average of close to USD 89 a barrel in 2026 and raising transport and input costs. A larger spike was avoided through inventory drawdowns, higher production outside the affected region and a rising share of renewable energy, which together have made many economies more resilient than in earlier energy shocks.

Downside risks remain material. A longer or wider conflict, a repricing of expectations around artificial-intelligence-driven productivity, renewed trade frictions and elevated public debt could tighten financial conditions and weigh on activity. At the same time, risks are more balanced than earlier in the year, and a durable de-escalation alongside a gradual normalisation of energy supply would support a firmer recovery in 2027.

For policymakers, the priorities are to rebalance the trade-off between containing inflation and preserving growth, to rebuild fiscal buffers eroded during successive shocks, and to manage the demands of higher defence and security spending without crowding out productive investment. Restoring predictability in trade and preserving financial and price stability remain central to sustaining medium-term growth.

Source: International Monetary Fund, World Economic Outlook Update, July 2026.

Indian Economy

India retained its position as the fastest-growing major economy in FY26, expanding at a pace that underlined the strength of domestic demand even as the external environment turned more challenging. Provisional estimates place real GDP growth at 7.7% for FY26, up from 7.1% in FY25, with growth in the fourth quarter estimated at 7.8%.

The expansion was broad-based on the production side. Manufacturing grew by about 10.7%, and the trade, hotels, transport and communication segment advanced at close to 11%, reflecting resilient urban and rural consumption. Growth in agriculture and allied activities moderated to around 3%, a reminder of the sectors continued sensitivity to weather conditions.

On the demand side, private final consumption expenditure quickened to 7.7% from 5.8% in the previous year, while gross fixed capital formation rose by more than 8%, indicating sustained investment and capacity creation. A benign inflation environment, with headline retail inflation staying well within the tolerance band for much of the year, supported real incomes and consumption.

Looking ahead to FY27, the Reserve Bank of India has projected real GDP growth to moderate to 6.6%, citing downside risks from the geopolitical situation in West Asia and the possibility of a below-normal monsoon. The central bank has projected consumer price inflation of about 5.1% for FY27 and, at its most recent review, held the policy repo rate at 5.25%.

External risks persist. Higher global energy prices, shifting trade dynamics and slower external demand could weigh on exports, while a normalisation of food prices and any weather- related disruption could influence the inflation path. These factors warrant close monitoring even as domestic fundamentals remain sound.

Taken together, India enters FY27 from a position of relative strength, supported by robust consumption, steady investment, moderate inflation and a stable policy framework. While growth is expected to ease from the elevated pace of FY26, the economy remains well placed to sustain its long-term trajectory amid a more uncertain global backdrop.

Source: Ministry of Statistics and Programme Implementation, Provisional Estimates of Annual GDP for FY 2025-26; Reserve Bank of India, Monetary Policy Statement.

Global Ready-to-Eat Food Industry

The ready-to-eat (RTE) food market continues to expand as convenience shifts from a discretionary choice to a weekly essential. The global RTE food market was valued at about USD 213.9 billion in 2025 and is estimated at around USD 233.6 billion in 2026, with projections pointing to roughly USD 563 billion by 2036 at a compound annual growth rate of about 9.2%. Retail remains the largest sales channel, and frozen formats account for a rising share of packaging, reflecting the move towards longer shelf life and safer distribution.

• Urban lifestyles and time scarcity:

longer working hours, extended commutes and rising disposable incomes are pushing consumers towards convenient, time-saving meals.

• Rising health awareness: closer attention to nutrition is broadening demand for cleaner, organic, plant- based, gluten-free and protein-rich options.

• Processing and packaging innovation:

freeze-drying, high-pressure processing and retort packaging extend shelf life while retaining quality, and nonthermal methods are gaining traction for energy efficiency and better nutrient and flavour retention.

• Digital and quick-commerce reach:

online grocery and rapid-delivery platforms have widened access to ready meals, particularly in urban centres.

Trends Redefining the Category

• Sustainability and Ethical Sourcing:

eco-friendly packaging, lower waste and greater supply-chain transparency are increasingly expected of manufacturers.

• Alternative and Plant-Based Proteins:

plant-based meat and dairy substitutes continue to move into the mainstream.

• Global and Fusion Flavours: appetite for diverse and internationally inspired meals keeps expanding.

• Functional, Wellness-Led Formats:

ingredients linked to health benefits are appearing more often in convenience products.

• Data-Led Personalisation: meal planning informed by data is enabling more tailored product choices.

Indian Ready-to-Eat Food Market

India is among the fastest-growing RTE markets in the world, with growth expected to outpace the global average at a compound annual growth rate estimated at close to 12% over the coming decade. Rapid urbanisation, a young working population, rising incomes and the rapid spread of quick-commerce and organised retail are supporting adoption of packaged and ready meals across metro and tier-2 cities. Growing acceptance of authentic regional cuisines in convenient formats further widens the addressable market for domestic manufacturers.

Key Challenges

• Quality and food safety:

maintaining consistent quality and meeting stringent safety norms remains critical.

• Pricing and affordability:

balancing value against quality is essential in price-sensitive segments.

• Packaging and waste: the sector must address the environmental footprint of packaging.

• Cold-chain gaps: limited cold storage and distribution in some regions constrain perishable lines.

Opportunities

• Treat quality and food safety as a point of differentiation.

• Adopt sustainable practices and recyclable packaging.

• Build healthy, varied ready-to- eat options for specific dietary needs.

• Use e-commerce and digital channels to widen distribution and engagement.

= Frozen Food Industry Overview

The Company operates its manufacturing at the Por facility in Vadodara, Gujarat, its flagship centre for ready-to-eat and frozen foods, with an installed capacity of 1,500 tonnes per annum across a factory area of about 29,585 square feet. The facility uses advanced retort processing and IQF technology to preserve the flavour and texture of traditional dishes. During the year the Company advanced plans to scale daily output at Por from 5 tonnes per day to 15 tonnes per day, a threefold increase intended to support growing domestic and international demand and to raise the share of in-house manufacturing.

The Companys retail and institutional footprint extended across 13 states and union territories, supported by a portfolio that includes more than 30 ready-to-eat variants, over 150 frozen food variants, 13 HORECA products and 18 spice blends. QuikShef anchors the ready-to-eat and frozen ranges, with shelf lives of up to 18 and 24 months respectively, while the sauces, condiments and spice ranges are positioned for both HORECA and retail channels. The Company is also progressing a dedicated condiments facility at Bhor, Pune, planned for high-volume production of sauces and mayonnaise for institutional, quick-service and export channels; the immediate operational focus, however, remains the Por expansion.

On exports, the Company maintained a commercial presence across more than five international markets, including the United States, Canada, the United Arab Emirates, Bahrain and Australia, with North America accounting for the largest share of export revenue. Demand is supported by the growing global acceptance of Indian convenience and ethnic foods and by the Companys food-safety certifications, which underpin access to premium retail and institutional buyers. The Company is selectively evaluating newer frontiers, including parts of Europe, the CIS region and Africa, subject to market potential and commercial viability.

Approach to Markets

In the domestic market, our approach is built around accessibility, relevance and engagement. We continue to consolidate the ready-to-eat and frozen ranges for urban households and HORECA customers, and to strengthen connections through general trade, modern retail and e-commerce. By offering products that combine taste, nutrition and affordability, we aim to deepen our domestic footprint.

Internationally, we position Wardwizard as a reliable source of authentic Indian flavours prepared to world-class standards. Certifications such as USFDA registration and FSSC 22000 allow us to compete credibly, and relationships with importers, distributors and retailers help establish shelf presence. Going forward, we intend to expand selectively into new geographies and to invest in product and packaging formats suited to the preferences of international consumers.

Challenges

Like the wider food and beverage industry, we operate in a dynamic environment shaped by external uncertainty and sector-specific complexity. Volatility in commodity prices, logistics disruption and inflationary pressure on input costs remain key challenges, and the expansion of our trading and export activities has lengthened working-capital cycles. Regulatory requirements across international markets also demand continued investment in compliance. While these factors test our resilience, they reinforce our focus on disciplined procurement, tighter working-capital management and operational efficiency.

Financial Performance Analysis Financial Statements Overview

Financial Ratios

Financial Analysis

FY26 was a year of substantial growth and a return to profitability. Total income rose to Rs. 23,998.44 lakh from Rs. 9,390.38 lakh in FY25, driven by net sales and income from operations of Rs. 23,773.12 lakh against Rs. 9,277.90 lakh, an increase of about 156%. The growth was led principally by the food commodity and trading business, which operated at a larger scale during the year.

Total expenses rose to Rs. 23,928.55 lakh from Rs. 10,776.52 lakh, broadly in line with the higher scale of operations. The Company recorded a profit before tax of Rs. 69.90 lakh, compared with a loss before tax of Rs. 1,386.15 lakh in FY25, and a

profit after tax of Rs. 131.07 lakh against a loss of Rs. 1,368.64 lakh. EBITDA for the year was Rs. 1,001.53 lakh, giving an EBITDA margin of 4.17%, while the profit-after-tax margin stood at 0.55%.

By segment, the strong revenue growth was substantially supported by trading and commodity activities, while the branded food segment, comprising ready-to-eat, frozen foods, sauces and mayonnaise, recorded lower sales than in the previous year as it continued through an investment and scale-up phase. The Company views the two segments as complementary, with trading providing scale and near-term contribution and branded foods being developed for higher value over the longer term.

On the balance sheet, total assets increased to Rs. 20,430 lakh from Rs. 13,622 lakh, reflecting the larger scale of operations. Current assets rose to Rs. 11,992 lakh and current liabilities to Rs. 8,919 lakh, as the expansion of trading and export activity, where receivable cycles can be longer, increased working-capital requirements. The Company is managing this through closer monitoring of receivables, customer credit terms, inventory levels and payable cycles, with the aim of improving the cash-conversion cycle while keeping working capital aligned with the pace of growth.

The Company has set out a medium-term aspiration of a compound annual revenue growth rate of around 25% over three years and an EBITDA margin in the range of 12% to 15% by FY29, against the 3.23% recorded in FY26. The bridge to that objective is expected to come progressively from the Por capacity expansion and higher utilisation, an improving product mix, greater in-house manufacturing in place of outsourced supply, disciplined pricing and operating leverage as fixed costs are spread over a larger revenue base. The Company will confirm specific investment, commissioning and full-utilisation estimates once project plans are finalised. These are forward-looking objectives, and actual outcomes will depend on market conditions and execution.

Human Resources

Our people remain central to the Companys progress. We are committed to a collaborative and inclusive workplace in which employees feel valued, respected and safe, and our human- resource policies are designed to attract, develop and retain capable talent while promoting trust, transparency and teamwork. During a year of rapid growth, we strengthened coordination across manufacturing, supply chain, exports and support functions to keep pace with higher business volumes, and we continued to invest in employee engagement and capability building so that our teams remain agile and prepared for the next phase of expansion. As on 31 March 2026, the Company employed a team of 18 Permanent employee, each contributing to our shared vision.

Internal Control Systems and Adequacy

The Company maintains an internal control framework commensurate with the size, scale and complexity of its operations. These controls are designed to safeguard the Companys assets against unauthorised use or disposal, to ensure that transactions are recorded and reported accurately, and to support compliance with applicable laws and regulations. The framework is reviewed and refined periodically to reflect changes in the business environment and evolving statutory requirements.

The internal audit function monitors the effectiveness of these controls, and the Audit Committee of the Board is apprised of audit findings on a regular basis. The Committee reviews the adequacy and efficiency of the control systems, recommends corrective measures where required and provides guidance to strengthen the framework further. In light of the higher scale of trading and export activity during the year, the Company has placed particular emphasis on strengthening receivables management, recovery mechanisms and the monitoring of customer and counterparty exposure. A well-developed Management Information System supports this process and forms an integral part of the Companys governance and control mechanism.

Cautionary Statement

Certain statements in this report concerning the Companys objectives, projections, estimates and expectations may constitute forward-looking statements within the meaning of applicable laws and regulations. These statements reflect the Managements current intent and assessment in pursuit of its strategic goals. Actual results may differ materially from those expressed or implied, on account of various risks and uncertainties, including economic conditions, commodity-price movements, regulatory developments and other factors affecting the Companys operations. Readers are therefore advised to exercise their own judgement and to consider all relevant factors before making any investment decision.