Wardwizard Foods & Beverages Ltd Management Discussions

Economic overview

Global economy

The global economy is projected to expand by 3.0% in 2025, with a modest uptick to 3.1% in 2026. These revisions are slightly more optimistic than earlier forecasts, underpinned by faster-than-expected adjustments in trade dynamics, a softer US dollar supporting financial conditions, lower effective US tariffs, and fiscal expansion across key markets.

Global headline inflation is expected to ease to 4.2% in 2025 and further to 3.6% in 2026, though regional variations remain pronounced. While inflationary pressures are likely to persist in the United States, other major economies are expected to experience more contained price trends.

Despite these improvements, downside risks remain. Escalating tariff disputes, unresolved geopolitical tensions, and commodity price volatility could strain global supply chains. Fiscal imbalances and risk aversion may also tighten financial conditions by driving up long-term interest rates. Moreover, rising concerns around economic fragmentation and slow progress on structural reforms could amplify volatility in global markets.

On the positive side, successful trade negotiations that deliver a more predictable and transparent policy environment could provide additional momentum to global growth. Restoring investor confidence, maintaining financial and price stability, rebuilding fiscal buffers, and implementing structural reforms remain central policy imperatives.

Volatility continues to be a defining feature of the global economy. Short-term relief has been provided by a temporary 90-day suspension of certain US-China tariffs and a delay in broader tariff hikes, which has marginally improved sentiment. However, unresolved legal disputes and uncertainty surrounding the long-term fiscal trajectory in the United States continue to weigh on global economic stability.

Indian economy

Indias economic outlook for FY26 is defined by a delicate balance between global uncertainties and strong domestic fundamentals. While GDP growth for FY25 is estimated to moderate to 6.2%, broader indicators continue to underscore the resilience of the economy.

On a comparative basis, growth may appear slower than in the previous two fiscal years. However, recent upward revisions to GDP figures provide important context. Notably, FY24 growth has been revised to 9.2%, the fastest pace in more than a decade (excluding the post-pandemic rebound). These adjustments reafirm the robustness of Indias domestic consumption, which remains the bedrock of its growth story.

FY25 witnessed temporary headwinds - election-related uncertainty, erratic monsoon patterns in the early quarters, and disruptions in global trade flows - which weighed on sentiment and certain sectors. Encouragingly, these factors are largely transient and expected to dissipate as both domestic and global policy environments stabilise.

Looking ahead, several macroeconomic enablers are poised to drive momentum in FY26. Tax incentives announced in the Union Budget are expected to catalyse consumption and investment, potentially adding 0.6%-0.7% to GDP. Alongside, moderating inflation, favourable borrowing costs, stable crude oil prices, and improved liquidity conditions are set to support broad-based sectoral recovery.

That said, external risks persist. Evolving trade dynamics, particularly with the United States, may influence export competitiveness. Should tariff measures intensify, growth could see a marginal drag of 0.1%-0.3% from the projected trajectory.

Balancing these forces, Indias GDP growth for FY26 is forecast in the range of 6.5%-6.7%. High-frequency indicators, from rising GST collections to strong automotive sales and resilient FMCG demand, suggest healthy underlying momentum.

In summary, India is well positioned to sustain its growth trajectory amid a shifting global economic landscape. With proactive policy support, stable macroeconomic fundamentals, and a resilient consumption base, the nation remains firmly on course towards long-term economic transformation.

Source https://www.deloitte.com/us/en/insights/topics/economy/ asia-pacific/india-economic-outlook.html

Industry overview

Global ready-to-eat food industry

The Ready-to-Eat (RTE) food market is undergoing significant expansion and is projected to experience strong growth from 2025 onwards. The global RTE food market is estimated at $213.92 billion in 2025. Its projected to reach $515.80 billion by 2035, growing at a CAGR of 9.2%.

The Asia Pacific region, particularly India and China, is a key growth region with high consumption and robust CAGRs. Indias RTE food market is anticipated to reach $3.41 billion by FY32 from $1.10 billion in FY24, growing at a CAGR of 16.40% during the forecast period FY25-FY32.

Key growth drivers

• Changing lifestyles and urbanization: Busy schedules, longer commutes, and increasing disposable incomes are prompting consumers to seek convenient, time-saving meal solutions

• Health-conscious consumers: A rising awareness of health and nutrition is driving the demand for healthier RTE options, including organic, plant-based, gluten-free, and high-protein varieties

• Advancements in food processing and packaging technology: Innovations in food preservation, such as freeze-drying, high-pressure processing (HPP), and retort packaging, have improved shelf life and convenience without compromising quality or taste. Non-thermal technologies are gaining importance as they are eco-friendly, energy-e_cient, and maintain higher nutritional and sensory values of food

• Rise of e-commerce and food delivery platforms: Online grocery shopping and meal delivery services have expanded accessibility and convenience for RTE products, especially in urban areas

Emerging trends

• Sustainable and ethical production: Consumers are increasingly demanding sustainable and ethically produced RTE options, pushing manufacturers to adopt eco-friendly packaging, reduce waste, and improve supply chain transparency

• Plant-based and alternative proteins: The plant-based food sector is expanding with innovative plant-based meat and dairy alternatives gaining mainstream adoption

• Global flavours and fusion cuisine: Consumers are exploring diverse flavours and cuisines, leading to a rise in internationally inspired RTE meals and fusion cuisine offerings

• Functional and super food-infused meals: RTE meals incorporating ingredients like turmeric, quinoa, and adaptogens are gaining popularity as consumers focus on wellness and functional benefits

• Personalised nutrition: AI-powered meal planning and genetic testing are enabling customized meal recommendations, including high-protein, keto-friendly, and other tailored options

Challenges and opportunities

Challenges

• Quality control and food safety: Ensuring consistent quality and adhering to stringent food safety regulations remain critical challenges

• Competitive pricing and affordability: Manufacturers need to balance competitive pricing with offering high-quality, nutritious options, particularly in price-sensitive markets

• Sustainable packaging and waste management: The industry needs to address the environmental impact of packaging waste and explore more sustainable alternatives

• Cold chain infrastructure: Limited cold storage and distribution networks, especially in developing regions, can hinder the growth of perishable RTE products.

Opportunities

• Prioritize quality control and food safety

• Focus on sustainable practices and eco-friendly packaging

• Develop innovative, healthy, and diverse RTE options, catering to specific dietary needs and preferences

• Leverage e-commerce and digital platforms for expanded distribution and consumer engagement

In conclusion, the RTE food industry is in a period of dynamic growth, driven by changing consumer lifestyles and technological advancements. To succeed in this evolving landscape, manufacturers need to prioritise convenience, quality, nutrition, and sustainability

Source https://www.futuremarketinsights.com/reports/ ready-to-eat-food-market#:~:text=The%20global%20 ready%2Dto%2Deat%20food%20market%20is%20 expected%20to,energy%20to%20cook%20traditional%20 meals. https://www.marketsandata.com/industry-reports/india-ready-to-eat-food-market https://foodnhotelasia.com/blog/fnb/ready-meal-trends/#:~:text=Market%20Overview:%20Growth%20 of%20the,entr%C3%A9es%2C%20or%20sustainable%20 meal%20kits.

Frozen food industry overview

The frozen food industry is poised for significant growth in the coming years, driven by evolving consumer lifestyles, technological advancements, and increasing awareness of health and environmental concerns. The global frozen food market is estimated to grow from $503.75 billion in 2024 to $712.76 billion by 2030, at a CAGR of 6.0% from 2025 to 2030.

The Indian frozen foods market reached _191.0 billion in 2024. It is projected to grow to _593.0 billion by 2033, exhibiting a CAGR of 13.4% during 2025-2033. Growth is fuelled by rapid urbanisation, rising demand for ready-to-eat foods, improved cold chain infrastructure, and changing dietary preferences across urban centres.

Key trends and drivers

• Convenience and busy lifestyles: The primary driver for the frozen food market is the increasing demand for convenient meal solutions due to busy lifestyles and time constraints

• Health and wellness: Consumers are increasingly seeking healthier frozen options, including organic ingredients, plant-based alternatives, and products catering to specific dietary needs like gluten-free and low-carb

• Plant-based revolution: The demand for plant-based frozen foods is skyrocketing, driven by health, ethical, and environmental considerations

• Premiumisation: Consumers are willing to pay more for high-quality, gourmet frozen meals and chef-inspired options

• Technological advancements

• Advanced freezing technologies like individual quick freezing (IQF) and cryogenic flash-freezing preserve the texture, flavour, and nutritional value of food

• AI and automation are being used to optimize production, enhance quality control, and improve supply chain efficiency

• E-commerce and D2C growth: Online platforms and direct-to-consumer (D2C) brands are expanding rapidly, offering convenience and a wider selection of frozen products

• Sustainability and eco-friendly packaging: Consumers are increasingly prioritizing brands that use recyclable, biodegradable, or compostable packaging materials

Challenges

• Cold chain infrastructure: Inadequate cold chain infrastructure and reliable power supply, especially in developing regions, can lead to product spoilage and limit market reach

• Consumer perception: Some consumers still perceive frozen foods as less fresh or healthy compared to fresh alternatives

• Logistics and distribution: The vast geography of India, for instance, poses challenges for efficient distribution, particularly for last-mile delivery

• Raw material costs and supply chain disruptions: Fluctuations in raw material prices and disruptions in the supply chain can impact profitability and product availability

Opportunities

• Targeting niche segments: Manufacturers can capitalize on growing demand for specific dietary needs, ethnic cuisines, and premium offerings

• Expanding into developing markets: Rising disposable incomes and urbanization in regions like Asia-Pacific present significant growth opportunities

• Innovation in product development: Focusing on products with improved taste, texture, nutritional value, and clean labels will be crucial for success

• Leveraging e-commerce and D2C models: Investing in online platforms and direct-to-consumer channels can expand reach and provide valuable consumer insights

• Sustainable practices: Adopting eco-friendly production methods, packaging, and cold chain logistics will resonate with environmentally conscious consumers.

Conclusion

The frozen food industry is undergoing a significant transformation, moving beyond basic convenience to embrace health, sustainability, culinary excellence, and technological advancements. While challenges remain, the industry is well-positioned for sustained growth in the coming years by focusing on innovation, meeting evolving consumer preferences, and addressing infrastructure gaps.

Source https://www.grandviewresearch.com/industry-analysis/frozen-food-market#:~:text=Industry:%20 Consumer%20Goods,Asia%20Pacific:%20Fastest%20 growing%20market https://www.imarcgroup.com/indian-frozen-foods-market#:~:text=Indian%20Frozen%20Foods%20 Market%20Summary,dietary%20preferences%20 across%20urban%20centers. https://www.coherentmarketinsights.com/market-insight/frozen-food-market-3084#:~:text=Frozen%20 Food%20Market%20Size%20and%20 Trends,5.3%25%20from%202025%20to%20 2032.&text=Consumers%20nowadays%20seek%2-0convenience%20and,helping%20stay%20ahead%20 of%20competition.

Company overview

At Wardwizard Foods & Beverages Limited, we are driven by a simple yet powerful belief that food is more than sustenance; it is an experience that connects cultures, nurtures well-being, and celebrates life. As a growing name in the Indian food and beverage sector, we take pride in crafting products that balance tradition with innovation, delivering authentic flavours while meeting the evolving demands of modern consumers.

Our portfolio spans ready-to-eat meals, frozen delicacies, quick-service restaurant offerings, and everyday staples. Each product reflects our unwavering commitment to quality, taste, and safety, enabled by in-house manufacturing capabilities and stringent adherence to global food standards. By maintaining vertical integration across our operations, we are able to protect our recipes, optimise supply chains, and consistently deliver food that carries the Wardwizard seal of trust.

Over the years, we have steadily evolved from being a domestic player into an aspiring global brand. FY25 marked a significant milestone in this journey as we deepened our presence in international markets, particularly across the United States, Canada, the United Kingdom, the UAE, and Australia. Securing certifications such as USFDA registration and FSSC 22000 has further reinforced our credibility and ability to serve discerning global consumers who seek authentic Indian flavours presented with world-class quality.

Our vision is to become a trusted Indian FMCG brand recognised worldwide, a company that not only scales new heights commercially but also contributes positively to society and the environment. To achieve this, we are continuously expanding our product portfolio into high-demand categories such as plant-based, functional, and health-focused foods, while embracing sustainable practices in sourcing, processing, and packaging.

What sets us apart is our people. Their creativity, expertise, and commitment are the true ingredients behind our success. Together, we cultivate a culture of excellence, inclusivity, and continuous learning, ensuring that Wardwizard remains agile and future-ready in a rapidly evolving food landscape.

As we look ahead, we remain focused on strengthening our exports, diversifying our offerings, and leveraging digital channels to connect with a broader consumer base. With robust foundations, a clear strategic direction, and an unyielding passion for excellence, we are confident of creating enduring value for all our stakeholders while making Wardwizard Foods & Beverages Limited a name synonymous with trust, taste, and transformation.

Strategies for success

Our strategies for success are anchored in innovation, quality, and adaptability. We believe that food is an ever-evolving space where consumer preferences shift quickly, and our ability to anticipate these changes gives us a competitive edge. By leveraging in-house manufacturing, advanced food processing technologies, and stringent compliance with global quality standards, we ensure that our products remain consistent in taste, safe, and scalable across geographies.

Equally, we focus on portfolio diversification, entering high-demand categories such as ready-to-eat meals, frozen foods, plant-based alternatives, and trade commodities. Alongside, we have strengthened our distribution network, both domestically and internationally, and invested in digital platforms to expand our consumer reach. Our success lies in balancing authenticity with convenience, ensuring that Wardwizard continues to deliver experiences that resonate with modern consumers while staying true to our Indian roots.

Challenges

Like the broader food and beverage industry, we operate in a dynamic environment shaped by global uncertainties and sector-specific complexities. Volatility in commodity prices, logistics disruptions, and inflationary pressures on input costs remain key challenges. Additionally, regulatory requirements across international markets demand constant vigilance and investment in compliance.

Domestically, we faced temporary headwinds such as shifts in consumer sentiment due to inflationary trends and unpredictable monsoon patterns that impacted agricultural supply chains. On the international front, trade dynamics, particularly tariff structures and evolving food safety norms, required us to be agile and proactive. While these challenges test our resilience, they also compel us to innovate, streamline processes, and deepen our focus on operational excellence.

Domestic sales strategy

Our domestic sales strategy is designed around accessibility, relevance, and consumer engagement. In India, rising demand for convenient, nutritious, and affordable food solutions creates a fertile ground for growth. We are tapping into this opportunity by consolidating our ready-to-eat and frozen categories that cater to urban lifestyles as well as HORECA.

We are also building stronger connections with consumers through traditional retail channels, modern trade outlets, and e-commerce platforms. Regional festivals, cultural events, and targeted campaigns play a crucial role in increasing brand visibility and creating emotional resonance. By offering products that blend taste, health, and affordability, we aim to strengthen our domestic footprint and establish Wardwizard as a household name in the Indian food space.

International sales strategy

Our international sales strategy is centred on positioning Wardwizard as a trusted ambassador of authentic Indian flavours with world-class quality. In FY25, we made significant progress by expanding into high-potential markets such as the USA, UK, Canada, UAE, Australia, and Bahrain. These geographies were strategically chosen based on rising demand for Indian ready-to-eat and frozen products, coupled with strong diaspora influence and growing mainstream acceptance of Indian cuisine.

We have secured critical certifications such as USFDA registration and FSSC 22000, which allow us to compete credibly in international markets. Collaborations with importers, distributors, and retailers have been instrumental in establishing shelf presence, while participation in global expos, cultural festivals, and sports events has enhanced brand visibility. Going forward, we will continue to expand to other geographies, and invest in product innovation, packaging formats, and digital platforms to meet the unique preferences of international consumers, ensuring that Wardwizard becomes synonymous with authenticity, convenience, and sustainability across borders.

Financial statements overview

(In lakh)

Particulars	FY25	FY24
Net Sales / Income from Operations	9,277.90	1,671.14
Other Income	112.48	297.72
Total Income	9,390.38	1,968.86
Total Expenses	10,776.52	5,192.14
Profit / (Loss) from Operations before Exceptional Items and Tax	-1,386.15	-3,223.28
Exceptional Items	-	-
Profit / (Loss) from Operations after Exceptional Items and before Tax	-1,386.15	-3,223.28
Profit / (Loss) before Tax	-1,386.15	-3,223.28
Tax Expense	-17.51	81.23
Net Profit after Tax	-1,368.64	-3,304.51

Financial ratios

Particulars	31.03.2025	31.03.2024
Current Ratio	2.06	2.71
Debt Equity Ratio	0.40:1	0.30:1
Return on Equity	-15.57%	-30.87%
Inventory Turnover Ratio	41.88	14.54
Trade Receivables Turnover Ratio	5.73	2.62
Net Profit Ratio	-0.15	-1.97
Operating Profit Ratio	0.02	-0.57

Financial performance analysis

In FY25, we demonstrated meaningful progress in strengthening our financial foundation, even as we navigated a dynamic operating environment. Our total income grew significantly to _9,390.38 lakhs, compared with _1,968.86 lakhs in FY24, an almost five-fold increase that reflects the scale and momentum of our expansion strategy. This growth was primarily driven by robust sales performance, with net sales and income from operations rising to _9,277.90 lakhs against _1,671.14 lakhs in the previous year.

While our revenues displayed strong growth, we also witnessed a rise in total expenses to _10,776.52 lakhs (FY24: _5,192.14 lakhs). This was attributable to investments in capacity building, distribution expansion, international certifications, and compliance initiatives, expenditures that we view as strategic in nature and vital for sustaining long-term growth. Consequently, our loss from operations before tax stood at _1,386.15 lakhs, a marked improvement over the previous years loss of _3,223.28 lakhs. Net loss after tax also narrowed to _1,368.64 lakhs from _3,304.51 lakhs, underlining the operational efficiencies we have built and the scale benefits that are beginning to accrue.

On the balance sheet front, our total assets grew to _13,622.20 lakhs, reflecting the investments made to strengthen our production, compliance, and supply chain capabilities. We also maintained a sufficient liquidity position, ending the year with cash and equivalents of _64.58 lakhs, which enables us to remain agile and pursue opportunities with confidence.

This financial performance must be seen in the context of our strategic pivot towards exports and portfolio diversification. Entry into new product categories such as frozen foods and trade commodities, coupled with the successful penetration of overseas markets like the USA, UK, Canada, UAE, and Australia, has started to create strong revenue pipelines. Though these investments have temporarily weighed on profitability, they are establishing the foundations of a resilient and scalable business model that we expect will deliver improved margins in the coming years.

Looking ahead, we remain focused on enhancing operational efficiency, optimising costs, and deepening our presence in high-growth categories and markets. With a stronger base of assets, rising brand visibility, and a clear strategic direction, we believe we are well positioned to deliver long-term shareholder value.

Human Resources

Our people are the most vital asset of our organisation. We are committed to fostering a collaborative and inclusive workplace where every employee feels valued, respected, and safe. Our human resource policies are designed to attract, nurture, and retain the best talent while promoting trust, transparency, and teamwork across all levels of the organisation. In a constantly evolving business environment, we continue to strengthen employee engagement and capability-building initiatives to ensure our teams remain agile, motivated, and future-ready.

As of 31st March 2025, Wardwizard Foods and Beverages Limited employed a team of 40 dedicated employees, each contributing meaningfully to our shared vision.

Internal control systems and adequacy

We have established a robust internal control framework commensurate with the size and complexity of our operations. These systems are designed to safeguard the Companys assets against unauthorised use or disposal, ensure the accurate recording and reporting of all transactions, and enable compliance with applicable regulatory requirements. Our internal control framework is continuously reviewed and refined to adapt to changes in the business environment and evolving statutory obligations.

The internal audit team plays a key role in monitoring the effectiveness of these controls, and the Audit Committee of the Board is periodically apprised of the audit findings. The Audit Committee reviews the adequacy and efficiency of the control systems, recommends corrective measures where necessary, and provides strategic guidance to further strengthen the framework. Our well-developed Management Information System (MIS) supports this process and forms an integral part of our overall governance and control mechanism.

Cautionary statement

Certain statements made in this report relating to the Companys objectives, projections, estimates, and expectations may be considered ‘forward-looking statements within the meaning of applicable laws and regulations. These statements reflect the intent and efforts of the Management towards achieving its strategic goals. However, actual results may differ materially from those expressed or implied due to various risks and uncertainties. We therefore advise investors to make independent assessments, taking into consideration all relevant factors, before making investment decisions.