Your directors take pleasure in presenting the fifty-first Annual Report together with the audited financial statements for the year ended
March 31,2026.

RESERVES

Your Company has not transferred any amount to the reserves for
the year ended March 31,2026.

SHARE CAPITAL

The paid-up Equity Share Capital of your Company as on March
31, 2026, was H 17,78,72,717 consisting of 17,78,72,717 equity
shares of Re. 1 each.

During the year, your Company allotted 94,423 ESOPs under the
Employee Stock Option Scheme-2016.

DIVIDEND

The Board has not proposed any dividend for the Financial Year
ended March 31, 2026.

CONSOLIDATED OPERATIONS

Consolidated revenue from operations for the year stood at
H 38,534.08 Crore, as compared to H 31,608.61 Crore in the previous
year. Total expenses for the year were H36,301.59 Crore, as against
H 29,806.24 Crore in the previous year. Operating profit (EBITDA),
excluding exceptional items, was H 3,798.89 Crore, as compared to

H2,992.64 Crore in the previous year. The profit after tax (attributable
to owners) for the year was H569.54 Crore, as against H878.35 Crore
in the previous year.

STANDALONE OPERATIONS

The standalone revenue from operations for the year under review
was H3,120.26 Crore, as compared to H3,168.12 Crore in the previous
year. Operating profit (EBITDA), excluding exceptional items, stood at
H398.92 Crore, as against H251.81 Crore in the previous year. The loss
after tax for the year stood at H708.28 Crore, as compared to a loss
of H428.30 Crore in the previous year. While the Company delivered
improved operating performance and maintained cost discipline
during the year, overall financial performance was adversely
impacted by impairment charges recognised in certain business
segments, which significantly contributed to the reported loss.

The financial year under review was characterised by a challenging
operating environment for both the Company and the sugar
industry at large. This was driven by a global sugar surplus, policy
constraints on domestic sugar releases and ethanol pricing,
and continued cost pressures arising from increases in the Fair
and Remunerative Price (FRP) for sugarcane. In response, the
Company focused on improving operational efficiency, optimising
costs, consolidating segments, and undertaking strategic course

corrections to navigate these headwinds. Although the Company
reported a net loss on a standalone basis, its underlying operating
performance across core segments remained resilient. Higher cane
crushing volumes, improved recovery rates, and stable distillery
output contributed to stronger operating performance compared
to FY 2024-25. The Company also made tangible progress on key
strategic initiatives, positioning it for future growth.

The sugar segment recorded improved operational performance,
albeit within a structurally constrained environment. Cane crushing
volumes increased marginally over the previous year, supported
by strong performance in Karnataka arising from higher yields, an
early start to the crushing season, and favourable fourth-quarter
conditions following healthy planting and an early monsoon.
Structural constraints in Tamil Nadu and Andhra Pradesh, particularly
lower cane availability and recovery levels, continue to persist,
largely due to adverse climatic conditions and a shift by farmers
towards alternative crops offering superior economic returns.
Recovery rates improved across most units, including Karnataka
and Tamil Nadu, supported by better cane quality and enhanced
process efficiencies. Sugar realisations improved by approximately
5.23% year-on-year, reflecting the Company's focus on premium
channels, institutional relationships, and value-added products.
Despite these positives, the continued mismatch between rising
sugarcane procurement costs and the unchanged Minimum
Support Price (MSP) for sugar remains a key constraint on segment
profitability. The Company, along with industry bodies, continues
to engage with policymakers to address this structural imbalance.

The distillery segment delivered stable performance, supported
by full-year operations of the expanded 582 KLPD capacity
commissioned in FY 2024-25 and the easing of restrictions on
sugar diversion for ethanol production from Ethanol Supply Year
(ESY) 2025 onwards. The Company's multi-feed capabilities across
Sankili, together with molasses and syrup-based operations
at Haliyal, Nellikuppam, Sivagangai, and Bagalkot enabled
optimisation of feedstock utilisation in line with evolving market
and policy conditions. The Company continues to engage with
the Government, along with industry bodies such as ISMA, on the
need for an upward revision in ethanol procurement prices, which
remains critical for enhancing distillery profitability.

The Consumer Products Group (CPG) segment underwent strategic
recalibration and consolidation during the year. Sweetener volumes
were impacted by Government release quotas, with the Company
focusing on premium channels and value-added products such
as Amrit brown sugar, Parry's "Gold", jaggery, and low-GI sugar. The
staples business (rice, pulses, and millets) underwent a channel
rationalisation exercise during the second half of the year, resulting
in short-term revenue pressures and transitional costs. During the
year, the Company commissioned its own dal processing facility,
strengthening backward integration and enhancing quality control.
The distribution footprint was expanded across modern trade,
e-commerce platforms, and rural and semi-urban markets. While
these corrective measures affected near-term performance, they
are expected to support a more capital-efficient and profitable CPG
business model from FY 2026-27 onwards. The Company is also
evaluating opportunities to expand its consumer portfolio through

strengthened R&D capabilities and a mix of organic and inorganic
growth initiatives.

The nutraceuticals segment recorded steady progress, supported
by improved export realisations and operational efficiencies.
While consolidated revenues declined by approximately 12%,
performance improved, with profit before tax (excluding
adjustments) turning around from a loss of H61 lakhs in the previous
year to a profit of H26 lakhs in the current year. This improvement
was driven by the commencement of exports to European
markets following regulatory approvals and a recovery in demand
in the United States. The segment continues to progress towards
profitability and is being positioned as a high-margin, science-
driven wellness ingredients business.

The cessation of operations of Parry Sugars Refinery India Private
Limited (PSRIPL) with effect from the close of working hours on
March 31, 2026 represents a significant strategic milestone. This
decision was driven by the structural unviability of the standalone
refinery business model in a global environment marked by surplus
supply and compressed refining margins. Pursuant to this decision,
the Company recognised an impairment charge of H40,060 lakhs
and a provision towards financial guarantee obligations of H59,132
lakhs for the year ended March 31, 2026. While these actions
impacted standalone net worth and leverage during FY 2025-26,
the closure eliminates significant contingent liabilities and is
expected to improve the Company's financial risk profile over
the medium term.

Looking ahead, the Board remains focused on strengthening EID
Parry's integrated sugarcane value chain, scaling the Consumer
Products Group into a meaningful consumer platform, and
enhancing the cane supply base through continued investments in
precision agriculture and farmer engagement.

ECONOMY & INDUSTRY SCENARIO

The global economic environment remains uncertain, influenced by
geopolitical tensions, trade disruptions, and divergent growth and
inflation outcomes across major economies. While global activity has
demonstrated resilience in the near term, structural vulnerabilities
remain, including elevated fiscal pressures, fragmented supply
chains, and increased reliance on economic policy instruments for
strategic purposes. In this volatile environment, we remain focused
on adapting, renewing, and positioning with emerging trends to
create sustained value for stakeholders.

Global economy

The global economy in FY 2025-26 navigated a complex landscape,
shaped by persistent geopolitical uncertainties, inflationary
pressures, and fluctuating energy prices.

The global economy faces renewed headwinds following the
outbreak of conflict in the Middle East in late February 2026. While
the past year saw reasonable resilience, supported by technology-
driven investment, a weaker US dollar, and accommodative policy,
the conflict now poses a significant counterforce through its
pressure on commodity markets, inflation, and financial conditions.

The IMF's reference forecast projects global growth at 3.1% in 2026
and 3.2% in 2027, a step down from the 3.4% pace seen in 2024-25,
and below the long-run historical average of 3.7%. Global headline
inflation is expected to rise to 4.4% in 2026 before easing to 3.7% in
2027. Notably, absent the conflict, 2026 growth would have been
revised slightly upward.

The impact is uneven across economies. Emerging markets
and developing economies bear a disproportionate burden,
with growth revised down by 0.3 percentage points for 2026,
while advanced economies see broadly unchanged forecasts.
Commodity-importing nations with existing fiscal vulnerabilities
face the sharpest pressures.

Downside risks remain dominant. An escalation in energy
disruptions could drag global growth as low as 2.0% in 2026, with
inflation breaching 6% by 2027. Key risk factors include worsening
geopolitical tensions, trade disputes, risks around AI investment
valuations, and rising public debt levels. On the upside, accelerated
AI adoption and structural reforms could provide meaningful offsets.

Source: World Economic Outlook, April 2026

Indian economy

India's external sector remained well-anchored. Services exports
continued to grow at a healthy clip, supported by IT, financial
services and professional services. The INR showed resilience relative
to most emerging market peers, aided by a comfortable foreign
exchange reserve position. India's equity markets performed well,
with domestic institutional flows providing a stable foundation
even as foreign portfolio investor behaviour was episodic. The
INR showed resilience through much of the year, supported by a
comfortable forex reserve position that peaked at $728.5 billion
in February 2026. However, the onset of the Middle East conflict
triggered a sharp reversal and FPIs pulled out over $19.7 billion,
causing forex reserves to decline by over $30 billion and the rupee
to weaken significantly.

For the agriculture sector and the sugar industry specifically, FY
2025-26 was marked by an above-normal south-west monsoon as
forecast by IMD earlier in the year that replenished groundwater
tables, improved soil moisture across major cane-growing
geographies and supported a healthy rabi season.

The Middle East conflict is, paradoxically, a structural opportunity
for India's sugar-biofuel complex. With crude oil prices spiking
nearly 30% at their peak and India importing nearly 85% of its
crude oil requirement, the strategic case for domestic ethanol
has strengthened considerably. India completed its nationwide
E20 rollout on April 1, 2026, ahead of the original 2030 deadline
and ISMA has already approached the PMO to fast-track blending
beyond E20, citing the current energy environment as both an
economic and strategic imperative.

Outlook for FY 26-27:

The near-term outlook is one of resilience tempered by external
headwinds. The IMF's April 2026 World Economic Outlook has revised
India's FY27 GDP growth forecast upward to 6.5%, citing robust
carryover momentum from FY26, strong domestic demand, and a
significant reduction in US tariffs on Indian goods. India remains the

fastest-growing major economy, one of the few to receive an upward
revision in a report otherwise dominated by global downgrades.

The Government's own Economic Survey 2025-26, tabled in
Parliament in January 2026, projected FY27 real GDP growth in
the range of 6.8-7.2%, underpinned by healthier household and
corporate balance sheets, sustained public investment, and resilient
private consumption. On inflation, both the RBI and IMF project a
gradual uptick in headline inflation in FY27, though within the RBI's
4% (±2%) tolerance band, with risks arising from imported inflation,
currency depreciation, and higher energy prices.

For the sector in which your Company operates, the critical variables
will be the trajectory of crude oil prices, the pace of ethanol policy
progression, domestic sugar balance management, and the
durability of rural demand which feeds directly into consumer
products volumes.

Sources: Economic Survey 2025-26; IMF Press Releases;
Finance Outlook India

Global sugar

According to S&P Platts, global demand supply balance in 2025¬
26 swung to a surplus of 3.5 MMT, from a deficit of 4.43 MMT in

2024- 25. This was mainly due to higher production in Brazil
(due to increased sugar mix) and Thailand, which were partially
compensated by reduction in EU. Global consumption growth in

2025- 26 was estimated to be flat to 0.5%.

2026- 27 projections of surplus are being revised drastically due
to elevated crude oil prices arising from geopolitical tensions and
development of El Nino weather pattern. Current estimates are
pointing to a balanced to slight deficit scenario. Sugar consumption
growth is expected to recover to 1.0% over 2025-26.

Indian sugar market

India is the world's second-largest sugar producer and one of its
largest consumers, with sugarcane cultivation concentrated across
nine major states namely, Uttar Pradesh, Maharashtra, Karnataka,
Tamil Nadu, Gujarat, Bihar, Haryana, Punjab, and Andhra Pradesh,
together accounting for the bulk of national output. The sugar
industry is an important agro-based industry that impacts the
rural livelihood of many people. The Indian cane sugar market was
valued at USD 55.40 billion in 2025 and is estimated to grow to USD
57.62 billion in 2026, reaching USD 70.13 billion by 2031 at a CAGR
of around 4%, underpinned by food and beverage applications
which accounted for over 60% of end-use demand.

Consumer preferences are evolving in parallel with the volume market.
Rising health awareness is driving demand for organic cane sugar,
brown sugar, and chemical-free variants, particularly in urban markets
and within the food service and Ayurvedic segments. Regulatory
headwinds from health concerns are reshaping product portfolios
toward low-sugar and organic variants, while liquid sugar is the
fastest-growing product segment at a projected 5.31% CAGR through
2031, driven by pharmaceutical and beverage sector demand.

Source: Mordor Intelligence

Sugar exports and imports

The government initially permitted exports of 1.5 million tonnes
for SS 2025-26, subsequently offering an additional 0.5 million
tonnes in February 2026 to willing mills on a non-swappable basis.
Of this additional tranche, mills applied for only 87,587 tonnes, the
remainder lapsed, reflecting subdued mill appetite for exports amid
unfavourable global price conditions. The Ministry of Food and
Public Distribution had set June 30, 2026, as the export deadline,
with mills required to ship at least 70% of their quota by that date to
retain the balance until September 30, 2026. However, as of May 14,
2026, the Directorate General of Foreign Trade (DGFT) announced a
ban of sugar exports, and will remain in effect until September 30,
2026, or until further orders.

Notwithstanding the above, as of January 31, 2026, actual
shipments stood at approximately 197,000 tonnes against the

1.5 million tonne initial quota, well below the pace needed to
utilise the full allocation with a further 272,000 tonnes contracted.
The muted uptake reflects unfavourable export economics and
subdued global prices, as assessed by multiple Asia-based traders
In aggregate, total approved export quota for SS 2025-26 stands at
approximately 1.59 million tonnes.

Sources: Economic Times; Press Information Bureau; Business Standard
Sugar production

Sugar production in India has reached 272 LMT as of March 31,
2026, for the ongoing 2025-26 sugar season (SS). According to the
Indian Sugar & Bio-Energy Manufacturers Association (ISMA), as on
March 31,2026, 56 mills were operational across the country, with
production continuing in key sugar-producing states.

The gross sugar production stood at 324 LMT during the 2025-26
marketing year with a diversion of 31 LMT of sweetener for ethanol
making, including 7 LMT for exports. Taking into account an
opening stock of approximately 50 LMT and a forecasted domestic
consumption of 283 LMT for the season, ISMA has projected a lower
closing stock of 53 LMT by September 30, 2026.

Sources: Chinimandi

Sugar consumption

India is the world's largest consumer of sugar, with domestic
consumption for SS 2025-26 estimated at approximately 285 lakh
tonnes, up around 4 lakh tonnes over the prior year. Institutional
consumption, led by beverages, bakery, confectionery, and dairy,
now accounts for approximately 60-65% of total demand and
continues to expand, while household sugar consumption has
moderated. Per-capita sugar consumption has stabilised at around
20 kg per annum, and domestic demand is projected to grow at a
steady 1.5-2.0% CAGR over the next five years.

Rising health awareness around diabetes and obesity is influencing
behaviour among higher-income urban consumers, nudging a
gradual shift toward low-calorie and sugar-substitute products,
though the impact on aggregate demand remains modest, with
middle- and lower-income populations continuing to drive sugar-
rich food consumption.

The sugar sector is an important agro-based sector that impacts the
livelihood of about 5 Crore sugarcane farmers and their dependents
and around 5 lakh workers directly employed in sugar mills, apart
from those employed in various ancillary activities including farm
labour and transportation.

Sources: Chinimandi; Press Information Bureau

Government of India - Policies / Amendments relating to
Sugar Industry

I.    Plastic Waste Management Rules, 2016 (as amended) -
Marking & Labelling on Plastic Packaging [28 April 2025 |
CPCB, Ministry of Environment, Forest and Climate Change]

CPCB notified revised requirements for marking and labelling
on plastic packaging, requiring all plastic packaging (rigid and
flexible) to display the producer/importer/brand owner name
and EPR registration number. The key compliance milestones
are as follows:

•    From 1 July 2024: All sugar sold in plastic packaging must
display the Brand Owner Name and EPR Registration
Number (with thickness details additionally required for
flexible single-layer plastics).

•    From January 2025: Additional labelling requirements
apply to compostable and biodegradable plastics.

•    From 1 July 2025: PIBOs (Producers, Importers, Brand
Owners) including sugar mills may provide packaging
information digitally through barcodes, QR codes or
brochures, on notification to CPCB. Where printing is
technically infeasible (per BIS guidelines), CPCB approval
must be sought and details must appear on the outer
packaging instead.

II.    Sugar (Control) Order, 2025 - Comprehensive Overhaul
of Regulatory Framework [01 May 2025 | G.S.R. 280(E) |
Department of Food & Public Distribution, Ministry of
Consumer Affairs, Food & Public Distribution]

The Sugar (Control) Order, 2025, which superseded the
Sugar (Control) Order, 1966 and the Sugar Price (Control)
Order, 2018, notified on May 1, 2025, consolidating all sugar
sector regulation into a single modern legal framework. Key
reforms include:

•    Digital Integration: Mandatory API-based integration
between sugar mills' ERP/SAP systems and the DFPD
portal for real-time data sharing and improved
transparency. Over 450 mills are already integrated.
GSTN data on sugar sales is linked to this system.

•    Unified Price Control: Sugar price regulation
provisions from the Sugar Price (Control) Order, 2018, are
incorporated into this Order, eliminating the need for a
separate price control instrument.

•    Inclusion of Raw and Khandsari Sugar: Raw sugar
(including 'organic' varieties) is formally recognised
in national stock calculations. Khandsari units above
500 TCD capacity are brought within the regulatory

purview to ensure FRP compliance and accurate
production estimates.

•    By-product Monitoring: Ethanol, molasses, bagasse
and press mud are brought under regulatory oversight
to track diversion from sugar production and safeguard
domestic availability.

•    Standardised Definitions: Product and stakeholder
definitions are harmonised with FSSAI norms, providing
clarity on sugar types (plantation white, refined, raw,
khandsari, bura, cube, icing) and on terms such as bulk
consumer, dealer and producer.

All reporting of production, stock, movement, sales and by¬
products must be digital; manual or legacy reporting methods
are no longer permitted. Labels must be updated to align with
the revised standard definitions.

III.    Fixation of Fair and Remunerative Price (FRP) for
Sugar Season 2026-27 [05 May 2026 | CCEA Decision |
Department of Food & Public Distribution, Ministry of
Consumer Affairs, Food & Public Distribution]

The Cabinet Committee on Economic Affairs, in its meeting
dated 05 May 2026, approved the Fair and Remunerative Price
(FRP) of sugarcane payable by sugar mills for the 2026-27
sugar season at H 365 per quintal, linked to a basic recovery
rate of 10.25%, representing a 2.82% increase over the 2025¬
26 FRP of H 355 per quintal. Key points:

•    Premium Mechanism: A premium of H 3.56 per quintal
applies for every 0.1% increase in recovery above 10.25%.

•    Reduction Mechanism: FRP is proportionately
reduced for every 0.1% decrease in recovery below
10.25% but above 9.5%.

•    Protection for Low Recovery Units: Mills with a
recovery rate of 9.5% or less will pay H 338.30 per quintal;
no further deduction is applied below 9.5%.

IV.    Amendment in Export Policy - Pharma Grade Sugar
[17 & 18 June 2025 | Notification No. 17/2025-26; Trade
Notice No. 06/2025-26 | Directorate General of Foreign
Trade (DGFT), Ministry of Commerce and Industry]

Pharma grade sugar (ITC(HS) Codes 17011490 and 17019990)
may now be exported under the 'Restricted' category with a
total annual limit of 25,000 MT. Only bona fide pharmaceutical
exporters are eligible, with one application per IEC per
financial year, submitted via the DGFT portal on a pro-rata
quota basis. Export authorisations are valid for one year from
the date of issue. Exports are conditional upon:

•    Submission of a licence issued by the concerned State
Licensing Authority; and

•    Submission of test reports and certification from
NABL-accredited laboratories confirming compliance

with pharma grade sugar specifications at the time
of actual export.

V.    Discontinuation of '100%' Claims on Food Product
Labels and Promotional Materials [28 May 2025 | RCD-
02001 /133/2024-Regulatory-FSSAI [E-12084] | Food
Safety and Standards Authority of India (FSSAI)]

FSSAI has advised Food Business Operators not to use
'100%' as a suffix or prefix to any declaration on labels (e.g.,
'100% Veg', '100% Pure'). Such claims convey a false sense of
absolute purity or superiority and may mislead consumers
into believing competing products are non-compliant with
prescribed standards. No specific implementation deadline
has been set; however, all product labels and promotional
materials carrying '100%' claims must be reviewed and revised
in coordination with packaging suppliers.

VI.    Display of Food Safety Connect Mobile App QR Code at
Food Premises [25 July 2025 | F. No. RCD-18001/1/2021-
Regulatory-FSSAI (E-2682) | Food Safety and Standards
Authority of India (FSSAI)]

FSSAI has made the QR code of the Food Safety Connect
App available on the front page of FSSAI Licences and
Registrations. All FBOs are advised to prominently display
their Licence/Registration copy (containing the QR code) at
customer-visible areas within their premises. The app enables
consumers to lodge food safety complaints, report misleading
claims on food products, and access information on licensed
FBOs and food safety alerts.

VII.    Sugar Export Quota Reassignment for 2025-26 - Tariff
Rate Quota Mechanism [01 August 2025 | DGFT Public
Notice No. 18/2025-26 | Directorate General of Foreign
Trade (DGFT)]

The DGFT has determined the annual export quantity for
sugar mills for 2025-26 based on domestic supply conditions
and prevailing global prices. Export is permitted exclusively
through the Tariff Rate Quota (TRQ) mechanism. The
notification covers an allocation of 5,841 MT to the EU and
requires direct shipment from the participating mill's own
facilities. Strict compliance and documentation requirements
apply, and export allocations are linked to mill performance.

VIII.    Removal of All Quantitative Restrictions on Ethanol
Production - 2025-26 Ethanol Supply Year [Notified:
01 September 2025 | Effective: 01 November 2025
| Ministry of Petroleum & Natural Gas; Ministry of
Consumer Affairs, Food and Public Distribution]

All quantitative restrictions on ethanol production from
sugarcane juice, sugar syrup, B-heavy molasses and C-heavy
molasses have been removed for the 2025-26 ethanol supply
year, superseding the earlier annual cap of 4 million tonnes
on sugar diversion. This follows improved monsoon rainfall
over the past two seasons which has enhanced sugarcane
availability; sugar production for 2025-26 is projected at
30.95-34.9 million tonnes. The Government has reserved the

right to periodically review sugar diversion to ensure adequate
domestic availability. No revision to ethanol procurement
prices for sugarcane-based feedstocks has been announced.
Mills should conduct monthly feedstock economics analysis
to optimise the sugar-ethanol production mix, noting that
sugarcane ethanol has declined to approximately 28% market
share as grain-based ethanol gains ground.

IX.    Environmental Charter for Sugar Mills - Periodic
Compliance Reporting [Ongoing / 2025 | MoEF&CC
Environmental Compliance Orders | Ministry of
Environment, Forest and Climate Change / CPCB / SPCB]

Sugar mills are required to periodically submit compliance
reports with strict enforcement of prescribed thresholds for:
maximum effluent per tonne of cane crushed; BOD, TSS and
pH standards; and stack emissions. Continued operations are
conditional upon regular reporting and fulfilment of these
thresholds, and compliance is mandatory for licence renewal.
Non-compliance may result in suspension of operations. Mills
must upgrade air and water pollution controls as required to
meet the prescribed environmental standards.

X.    Jute Packaging Compulsory Order - 20% Jute Mandate
for Sugar Mills Upheld [Enforced: 02 September 2025
| S.O. 1830(E) dated 22 April 2025; S.O. 5459(E); S.O.
4319(E) | Ministry of Textiles / Karnataka High Court]

The Karnataka High Court upheld the 20% jute packaging
mandate under the Jute Packaging Materials (Compulsory
Use in Packing Commodities) Act, rejecting challenges from
sugar mills on grounds of health, supply and market viability.
The Court held that the mandate reflects a legitimate policy
need to protect the economic security and livelihoods of
those in the jute sector, consistent with socio-economic
justice and Directive Principles. The mandate is reviewed
annually by an expert Standing Advisory Committee. Sugar
mills must accordingly use jute bags for a minimum of 20%
of their sugar packaging in the 2025-26 season; compliance
is enforced by the Directorate of Sugar and non-compliance
attracts penalties under the Essential Commodities Act.

XI.    Sugarcane (Control) Amendment Order, 2025 -
Clause 6F: Reinstatement of Derecognised Industrial
Entrepreneur Memoranda [16 October 2025 | S.O.
4688(E) | Ministry of Consumer Affairs, Food and Public
Distribution]

Clause 6F has been inserted into the Sugarcane (Control)
Order, 1966, establishing a one-time, case-by-case review
mechanism for reinstatement of derecognised Industrial
Entrepreneur Memoranda (IEMs). The key conditions
governing reinstatement are:

• Reinstatement is subject to submission of fresh or
additional performance bank guarantees where
originals have been forfeited or expired.

•    For regularisation of expired periods beyond seven
years: an additional bank guarantee of H 50 lakh
per year is required; the COVID-19 relaxation for the
period 1 March 2020 to 28 February 2022 continues to
apply. Extensions for completion of effective steps are
capped at a maximum of two years, not exceeding one
year at a time.

•    A further maximum two-year extension (one year at a
time) is available for commencement of commercial
production, beyond which no further extension
is permissible.

•    Applications may be rejected where evidence is
insufficient or circumstances do not justify reinstatement.

Reinstated entities must continue to meet all provisions of the
Order, including minimum distance requirements. Strict bank
guarantee forfeiture provisions apply for non-compliance
with prescribed timelines.

XII.    Used Oil Extended Producer Responsibility (EPR) -
Extension of FY 2024-25 Return Filing Deadline [22
October 2025 | F. No. 23/75/2021-HSM | Ministry
of Environment, Forest and Climate Change - HSM
Division]

MoEF&CC extended the FY 2024-25 return filing deadline
under the Used Oil EPR framework to 31 December 2025,
from the earlier deadline of 30 September 2025, pursuant to
Rule 30(5) of the Hazardous & Other Wastes (Management and
Transboundary Movement) Amendment Rules, 2025. ("HOWM
Rules"). Sugar mills with integrated cogeneration plants that
generate used lubricating oil (classified as hazardous waste
under the HOWM Rules) must register on the CPCB EPR
portal as 'producers' and meet applicable recycling targets.
FY 2024-25 returns must be filed by 31 December 2025 to
avoid penalties.

XIII.    FSSAI Advisory - Disposal of Seized, Rejected & Expired
Food Items [03 November 2025 | RCD-02005/10/2024-
Regulatory-FSSAI-Part(1) | Food Safety and Standards
Authority of India (FSSAI)]

FSSAI reiterated its directions on the disposal of seized,
rejected and expired food items following reports of such
items being dumped in rivers and natural water bodies.
Disposal of food or packaging in any open land or water
body is strictly prohibited. Permitted disposal methods
are: incineration; sanitary landfills with leachate control;
composting; or anaerobic digestion in coordination with
municipal bodies. Disposal must be supervised, video-
documented and witnessed by designated officers, who
are required to maintain lists of authorised disposal facilities.
States/UTs must submit monthly compliance reports to FSSAI,
and food businesses must establish and document formal
disposal protocols.

XIV.    Sugar Export Quota for 2025-26 Marketing Year -
1.5 Million Tonnes Approved [07 November 2025 |
Ministerial Announcement by Union Food Minister
Pralhad Joshi | Ministry of Consumer Affairs, Food and
Public Distribution]

The Government of India approved a sugar export quota of 1.5
million tonnes (15 lakh tonnes) for the 2025-26 marketing year
(commencing October 2025), representing a 50% increase
over the 1.0 MT quota for 2024-25. Additional quantities may
be permitted in March 2026 subject to domestic availability
and price conditions. Industry bodies (ISMA, NFCSF) have
requested an increase to 2.5 MT citing a projected surplus
of 3-4 MT; the Government will monitor domestic price
impact before considering an MSP revision (unchanged at
H 31/kg since February 2019). Current domestic sugar prices
(H 38-39/quintal ex-mill) exceed international parity, making
raw sugar exports economically unviable at prevailing price
levels (viability requires 18.5-19 cents/lb). Only white sugar
to regional markets (Somalia, Sri Lanka, Afghanistan, Djibouti)
currently shows positive export margins. Mills should
obtain export allocations early, monitor international price
movements and plan stock liquidation strategies for later in
the season when export economics may improve.

XV.    Jan Vishwas (Amendment of Provisions) Bill, 2026 -
Decriminalisation of Certain Offences [April-May 2026
| Bill introduced in Parliament | Ministry of Commerce
and Industry]

The Union Government has introduced the Jan Vishwas
(Amendment of Provisions) Bill, 2026, proposing amendments
to multiple Central legislations with the objective of
decriminalising and rationalising certain offences to promote
ease of doing business. In respect of statutes relevant to
the food and sugar industry, including the Food Safety and
Standards Act, 2006 and the Legal Metrology Act, 2009, the
Bill proposes to:

•    Replace certain criminal penalties with civil penalties
and introduce graded monetary penalties.

•    Expand the scope for compounding of offences.

•    Provide for issuance of improvement notices prior to
initiation of punitive action.

•    Align procedural references with the revised
criminal law framework.

The proposed amendments do not dilute substantive
compliance obligations under the respective statutes. The
Bill will become effective only upon enactment by Parliament
and notification by the Central Government.

XVI.    Legal Metrology (Packaged Commodities) Amendment
Rules, 2026 - Country of Origin Disclosure for
E-Commerce Platforms [Notified: April-May 2026 |
Effective: 1 July 2026 | Ministry of Consumer Affairs,
Food and Public Distribution - Legal Metrology Division]

The Amendment Rules mandate that e-commerce platforms
selling imported products must display or make searchable
the country of origin of such products. The primary
compliance obligation lies with the e-commerce entity, not
the manufacturer or importer. The amendment comes into
effect from 1 July 2026. Where the company sells products
through e-commerce platforms, country of origin display
requirements must be implemented by the effective date.
Distributors and retailers on e-commerce platforms must be
notified and provided with accurate country of origin data.
Given that the company's primary products (sugar, jaggery,
pulses) are domestically manufactured, the direct impact of
this amendment is limited to any imported product lines.

XVII.    GST Rate Rationalisation for Sugar, Agri-Inputs and
Confectionery [22 Sep 2025 | Notification No. XX/2025 |
Ministry of Finance, Department of Revenue]

The Central Government, exercising powers under the Goods
and Services Tax framework, notified a reduction in the GST rate
from 12% to 5% with effect from 22 September 2025, covering all
forms of sugar, syrups, confectionery products, farm implements,
and pesticides. Key aspects of this rationalisation include:

•    Sugar and Downstream Products: The reduced rate
applies uniformly across all sugar varieties - plantation
white, refined, raw, khandsari, bura, cube and icing
sugar as well as syrups and confectionery products
derived therefrom, aligning tax treatment with the
consolidated regulatory framework under the Sugar
(Control) Order, 2025.

•    Agri-Input Relief: Farm implements and pesticides are
brought within the 5% slab, reducing input cost burdens
on the agricultural sector and incentivising formal
procurement channels.

•    Cascading Benefit to Consumers: The rate reduction
is expected to translate into lower retail prices across the
sugar value chain, from raw commodity to processed
confectionery, subject to anti-profiteering compliance.

•    ITC Implications: Registered suppliers dealing in these
goods must reassess their Input Tax Credit positions and
revise pricing structures accordingly, ensuring pass¬
through of the benefit to the end consumer.

•    Revised Invoicing and Compliance: All taxpayers
supplying the affected goods are required to update

their billing systems, HSN-wise rate masters, and GSTR
filings to reflect the revised rate with effect from the
notification date.

XVII. Four Labour Codes - Consolidation and Streamlining
of Labour Laws [November 2025 | Ministry of Labour &
Employment, Government of India]

The Government of India, in a landmark exercise of legislative
consolidation, enacted four Labour Codes in November
2025, subsuming and rationalising 29 central labour laws
into a unified, modern framework. Key features of this
overhaul include:

•    Code on Wages: Consolidates the Payment of Wages
Act, 1936, the Minimum Wages Act, 1948, the Payment
of Bonus Act, 1965, and the Equal Remuneration Act,
1976, establishing a universal wage definition and
ensuring floor-level wage protection across all workers,
including unorganised sector employees.

•    Code on Industrial Relations: Subsumes the Trade
Unions Act, 1926, the Industrial Employment (Standing
Orders) Act, 1946, and the Industrial Disputes Act,
1947, streamlining dispute resolution mechanisms,
rationalising strike and layoff provisions, and expanding
the threshold for retrenchment and closure approvals.

•    Code on Social Security: Amalgamates nine
legislations including the Employees' Provident Funds
Act, 1952, the Employees' State Insurance Act, 1948,
and the Maternity Benefit Act, 1961, extending social
security coverage to gig workers, platform workers and
unorganised sector labour for the first time.

•    Code on Occupational Safety, Health and Working
Conditions: Consolidates thirteen Acts including the
Factories Act, 1948 and the Contract Labour (Regulation
and Abolition) Act, 1970, prescribing uniform safety
standards, working hour norms and welfare obligations
across establishments.

Sugar Industry - Adjacencies:

Ethanol

Ethanol production is becoming increasingly intertwined with
the sugar industry, particularly in countries like India, due to the
Ethanol Blending with Petrol (EBP) Programme and the use of
sugarcane and molasses as feedstock. This creates an "adjacency"
where sugar mills are not only producing sugar but also ethanol,
enhancing the overall value chain and potentially benefiting both
the sugar and ethanol industries. Ethanol, produced from various
sources including sugarcane and molasses, is a biofuel that can be
blended with petrol to reduce emissions and reduce dependency
on regular fuel.

Indian Ethanol Industry Overview

India crossed the 20% ethanol blending milestone with petrol in
November 2025, roughly two months ahead of the national target.
Since April 1,2026, E20 fuel became mandatory across all states and
Union Territories.

For the industry, FY 2025-26 marked a structural inflection. Ethanol
producers collectively offered 17,760 million litres for ESY 2025-26
significantly exceeding OMCs' annual requirement of approximately
10,500 million litres with sugarcane-based producers contributing
4,710 million litres and grain-based units accounting for the
balance. ISMA's Director General noted that with over H 40,000
Crores invested and annual production capacity exceeding 900
Crore litres from sugarcane alone, the industry is fully equipped
to support blending well beyond E20. The policy conversation has
now decisively shifted to E22 as the next formal target, though
any meaningful step up will require careful coordination across
petroleum, food, and agriculture policy, particularly around sugar
export allocation and ethanol procurement pricing.

EID Alcohol business at a glance

FY 2025-26 was a year of consolidation and strategic deepening
for EID Parry's Alcohol business. We strengthened our relationships
with oil marketing companies and continued to optimise our
integrated distillery operations across feedstocks. Zero Liquid
Discharge remains a non-negotiable standard across all our
facilities, a reflection of our conviction that operational excellence
and environmental responsibility are inseparable. As India's ethanol
programme enters its next phase, we are well-positioned to
contribute meaningfully with the capacity, the partnerships, and
the commitment to do so.

Co-generation

Co-generation remains an integral pillar of EID Parry's integrated
manufacturing model. By converting bagasse, the fibrous residue
from sugarcane crushing into steam and power, our mills achieve
near-complete utilisation of the cane, generate captive energy for
operations, and export surplus power to the grid, creating a circular,
zero-waste energy loop. During FY 2025-26, we maintained stable
power generation across our facilities, with continued focus on
optimising steam-to-power ratios and investing in energy-efficient
automation. Co-generation not only reduces our dependence on
grid power and fossil fuels but also contributes directly to India's
renewable energy capacity making it both an operational and
sustainability asset for the business.

BUSINESS OVERVIEW

Sugar Cane

The profitability of the sugar business continues to be fundamentally
driven by two key factors: availability of sugarcane and sucrose
recovery levels. During the year under review, sugarcane availability

across the Company's operating regions presented a mixed trend,
with Karnataka demonstrating strong recovery, while Tamil Nadu
and Andhra Pradesh continued to face structural challenges.

Tamil Nadu (TN)

Tamil Nadu continued to experience a challenging operating
environment during the year, with cane crushing volumes declining
to 10.51 LMT from 12.35 LMT in the previous year. The contraction in
volumes is largely attributable to a sustained reduction in sugarcane
cultivation area, driven by erratic rainfall patterns and a shift by
farmers towards less water-intensive and more remunerative crops.

Farmers in the region also faced increasing cost pressures, primarily
due to acute shortages of agricultural labour required for key field
operations such as planting, harvesting, and field maintenance.
Despite these constraints, the average recovery rate improved to
8.48%, as compared to 8.14% in the previous year. This improvement
was supported by better plant uptime, enhanced discipline in
harvesting schedules, improved crushing efficiency, and favourable
climatic conditions during the core crushing season.

Karnataka (KA)

In contrast, Karnataka operations demonstrated a strong rebound
in both volume and efficiency during FY 2025-26. Cane crushing
volumes increased significantly to 25.64 LMT, up from 21.57 LMT in
the previous year, supported by favourable weather conditions and
improved agricultural practices.

The average recovery rate improved to 12.07% from 11.74% in
FY 2024-25. This performance was underpinned by disciplined
harvesting practices, optimised labour deployment, higher plant
uptime, and effective operational execution. Karnataka continues
to remain a key strength in the Company's operational portfolio.

Andhra Pradesh (AP)

The Andhra Pradesh unit experienced a sharp decline in operations
during the year, with cane crushing volumes falling to 2.25 LMT, as
compared to 3.50 LMT in the previous year. The average recovery rate
declined to 8.99% from 9.69%, primarily due to delays in harvesting
arising from labour shortages and sub-optimal cane quality.

The region continues to face structural challenges in cane
availability, driven by a reduction in the local supply base. Farmers
are increasingly shifting towards alternative crops such as paddy, oil
palm, and maize, which offer better economic returns. Additionally,
government policy incentives favouring these crops have further
accelerated this transition, making it increasingly difficult to sustain
cane acreage and secure consistent supply.

Farmer Partnership & Sustainable Agriculture

At the core of the Company's operations lies a sustained
commitment to the farming communities that support its business.
The Company continues to adopt a farmer-centric approach,
recognising that its long-term sustainability is closely linked to
the economic resilience and ecological well-being of the farmers
engaged in its supply chain. This includes both existing sugarcane
farmers and non-cane farmers, who are actively encouraged and
supported to transition to sugarcane cultivation.

The agricultural sector is currently confronted with multiple
structural challenges, including climate variability, diminishing
landholdings, water scarcity, and generational shifts in farming
practices. In response, the Company has progressively transitioned
from being a purchaser of produce to an enabler of farm-level
resilience. Through structured crop development programmes,
integrated pest and nutrient management, and improved irrigation
practices, the Company is promoting sustainable and regenerative
agricultural practices across its cane-growing areas.

Water stewardship remains a critical priority, given the water¬
intensive nature of sugarcane cultivation. During the year, the
Company advanced its water management efforts through
targeted technology interventions. Its collaboration with Cultyvate
has enabled the use of soil sensor-based, autonomous irrigation
systems aimed at optimising water usage and improving crop
outcomes. In addition, the partnership with Jiva supports on-farm
water management through smart water devices. Collectively,
these initiatives are designed to address water scarcity through
measurable, technology-enabled solutions at the farm level.

At a broader ecosystem level, Project NANNEER, implemented in
partnership with the AMM Foundation, focuses on the restoration
of water bodies and groundwater recharge in key operational
geographies. The project is being expanded to additional regions,
including Karnataka and Andhra Pradesh, and is evolving as a
scalable model for strengthening community-level water security.

In the area of sustainability and carbon initiatives, the Company
continues its engagement with Bonsucro, a globally recognised
standard for sustainable sugarcane production. It has also partnered
with Boomitra to enable carbon-related incentives linked to
sustainable farming practices. These efforts are supported by field-
level training programmes aimed at enhancing farmer capabilities
in sustainable agriculture.

The Company believes that sustainable agriculture must be
inclusive, technology-enabled, and economically viable for farmers
Accordingly, investments in this area are integral to strengthening
supply chain resilience and supporting the long-term sustainability
of the business.

Agri-Tech and Digital Agriculture Initiatives

"Building on its established farmer engagement framework, the
Company has further expanded the adoption of digital and agri-tech
solutions across its cane development operations".

During FY 2025-26, the Company strengthened its digital
ecosystem with a strategic focus on improving operational
efficiency, enhancing farmer engagement, and enabling data-
driven decision-making.

A centralised "Cane Insights" control tower was implemented to
provide near real-time visibility into key operational parameters,
including cane crushing, yard operations, production metrics, and
plant-level supply trends. This has enhanced monitoring capabilities
and improved operational responsiveness.

The Company also introduced vehicle transit tracking systems to
monitor entry, turnaround times, and waiting periods at factory
locations. In addition, the rollout of the E-Trip Sheet system has
enabled end-to-end digital tracking from field to factory, including
lorry movement, field allocation, load status, and field officer
mapping. This initiative has significantly reduced manual processes
through streamlined digital workflows.

A dedicated dashboard for Agri Service Providers (ASPs) was
developed to monitor key parameters such as service coverage,
farmer outreach, registered area, supply area, and related
expenditure. The dashboard also provides insights into service
utilisation patterns, supporting more effective resource deployment.

During the year, soil health and nutrient data were integrated into
the i-Cane Management System to facilitate plot-level agronomic
insights, improve fertiliser recommendations, and support data-
driven yield optimisation initiatives.

The Company has also initiated the development of a unified
digital platform through the integration of the Farmer Connect
mobile application, the i-Cane field operations platform, and the
i-Cane Management System. This initiative is planned for phased
implementation during FY 2026-27 and is expected to further
strengthen farmer engagement, enhance field productivity, and
enable faster decision-making.

Additionally, a comprehensive Farmer 360-degree dashboard was
developed to provide insights into yield trends, productivity, and
farmer retention metrics. Further enhancements are planned to
strengthen analytics-led planning and operational reviews.

While these digital initiatives have enhanced efficiency and
transparency, the Company continues to focus on improving user
adoption across teams to fully realise their benefits.

The Company has also implemented a Radio Frequency Identification
(RFID)-based vehicle entry system at its Haliyal plant to improve
cane yard efficiency, strengthen transparency, and enable real-time
monitoring. The system is proposed to be extended to other units
to further enhance traceability and operational effectiveness.

Manufacturing operations

The Company's sugar and distillery operations continue to be
anchored in robust manufacturing practices, strong process
discipline, and an unwavering focus on safety, quality, sustainability,
and cost leadership. EID Parry operates four integrated sugar
complexes, two standalone sugar and cogeneration units, and
one standalone distillery across South India, with manufacturing
facilities located at Nellikuppam, Pugalur, and Sivaganga (Tamil
Nadu); Sankili (Andhra Pradesh); and Bagalkot, Haliyal, and
Ramdurg (Karnataka).

As at the end of FY 2025-26, the Company has an aggregate
sugarcane crushing capacity of approximately 40,800 TCD,
cogeneration capacity of about 140 MW, and distillery capacity of
about 582 KLPD across its operating locations. These facilities are
supported by modern process automation systems, advanced

analytical laboratories, and digital monitoring platforms to
ensure consistent product quality, regulatory compliance, and
operational reliability.

The Company supplies a diversified portfolio of products, including
plantation white sugar, refined sugar, specialty sugars, and jaggery
powder, to reputed multinational beverage, confectionery,
pharmaceutical, and institutional customers, where adherence to
stringent quality and food safety standards is critical. In addition,
the Company supplies Extra Neutral Alcohol (ENA) and ethanol to
manufacturers in the Indian Made Foreign Liquor (IMFL) segment
and to Oil Marketing Companies (OMCs).

During the year, the Company continued its Manufacturing
Excellence journey, with focused initiatives on asset reliability,
throughput enhancement, cost optimisation (both fixed and
variable), automation, and customer-centric product portfolio
management. A structured approach was undertaken to
standardise best practices from high-performing units, notably
Haliyal and Bagalkot, and replicate them across the manufacturing
network. Concurrently, operational systems were strengthened
to ensure optimal balance between cost efficiency, safety,
sustainability, and profitability, particularly in a volatile raw material
and market environment.

All manufacturing facilities remain environmentally compliant and
adhere to applicable emission and discharge norms. Continuous
improvement initiatives in energy efficiency, water conservation,
waste minimisation, and circularity were implemented across units.
Periodic internal and external audits ensure sustained compliance.
All operating units maintain ISO 14001 (Environmental Management
Systems) and ISO 45001:2018 (Occupational Health and Safety)
certifications. Advanced pollution control systems, including
spent wash incineration boilers, are operated in accordance with
statutory requirements.

Challenges
Sugar Operations

During FY 2025-26, sugar operations were impacted by lower
cane availability, particularly in Tamil Nadu and Andhra Pradesh,
and variability in cane quality across regions, which affected overall
crushing volumes and recovery levels.

•    Tamil Nadu: Cane supply constraints were mitigated through
improved harvesting logistics, increased deployment of
mechanised harvesting, and optimised crushing start-up
schedules to safeguard recovery and throughput.

•    Karnataka: Initial operational challenges were addressed
through closer coordination with regulatory authorities
and process stabilisation measures, resulting in stable and
improved plant performance in the latter part of the season.

•    Andhra Pradesh: The Company has been working
to mitigate the decline in cane registration through
additional area allocation approvals and proactive farmer
engagement initiatives.

Despite these challenges, the Company was able to protect cash
flows and contribution through inventory optimisation, improved
sales offtake, and disciplined cost management.

Distillery Operations

Distillery operations were subject to constraints arising from
feedstock availability volatility and variations in route-wise pricing.

•    The Company effectively leveraged its multi-feedstock and
multi-route capabilities (B-heavy molasses, C-heavy molasses,
syrup and grain -based ethanol routes) across distilleries to
optimise capacity utilisation.

•    Strategic feedstock planning and operational initiatives
enabled the Company to achieve ENA and ethanol sales of
approximately 1,635 lakh litres during FY 2025-26, despite
constrained upstream sugarcane availability.

Cogeneration Operations

Cogeneration performance remained closely aligned with sugar
operations and the availability of bagasse.

•    Focused initiatives on steam economy, process heat recovery,
boiler optimisation, and reduction in auxiliary power
consumption supported improved power export levels.

•    Automated scheduling of power exports and enhanced
operational discipline contributed to better realisation
from power sales.

Achievements

•    Improved asset utilisation across sugar, distillery, and
cogeneration units through a strong focus on minimising
downtime and adopting predictive maintenance practices.

•    Strengthening of the Operational Excellence (OE) programme
at key units such as Haliyal and Bagalkot, with structured
rollout across other units underway.

•    Expansion of value-added product portfolio, including
stabilisation of jaggery and specialty sugar production to
enhance revenue diversification.

•    Enhanced safety performance through strengthened
governance, targeted training, and digital monitoring systems
across manufacturing locations.

•    Increased adoption of digital technologies and automation
across manufacturing processes to improve operational
reliability, efficiency, and decision-making capability.

Sales and marketing

As a market leader in the packaged sugar segment in South India,
the Company markets its products under the iconic 'Parrys' brand
and is well positioned to further scale both retail and institutional
segments through its extensive distribution network. During the
last year (2024-25), the Company strengthened its growth agenda
by entering the staples category under the 'Parrys' brand, as part
of a strategic initiative to enhance its share of the consumer

grocery basket, consolidate brand equity, and build long-term
sustainable growth.

The introduction of new product categories has expanded the
brand's consumer franchise and enabled wider distribution across
southern India. 'Parrys' has established a strong presence on
e-commerce platforms while further consolidating its footprint
in modern trade channels. With a diversified presence across
multiple customer segments, the premium brand continues to
command strong consumer trust and preference, translating into
consistent volume growth.

In response to evolving consumer preferences, particularly the
increasing shift towards healthier food choices that gained further
momentum during the pandemic; the Company has expanded
its offerings through product innovation. The 'Parrys' portfolio
now includes value-added products such as Low Glycaemic
Index (GI) sugar and millets. Low GI sugar caters to pre-diabetic
and health-conscious consumers by enabling reduced blood
sugar spikes without compromising on taste. These differentiated
offerings have received encouraging market acceptance.

The Company's strategic emphasis on strengthening the branded
retail sugar portfolio is aimed at reducing the inherent cyclicality
associated with the sugar business. Increased focus on branded
and value-added products is expected to contribute to relatively
better pricing stability, improved realizations, and more resilient
long-term growth prospects. This approach is aligned with the
Company's vision of achieving sustainable growth while reinforcing
its leadership position in the sugar industry.

The Company continues to foster a culture of innovation and
continuous improvement, supported by active collaboration and
feedback from consumers as well as internal stakeholders. This
philosophy underpins the development of new product categories
and enhances the scalability of future offerings. A robust sales
and marketing framework anchored in deep market insights,
targeted initiatives, effective go-to-market strategies, technology
enablement, and performance monitoring supports the Company's
pursuit of operational and brand excellence.

To strengthen its staples platform and improve control over product
quality, consistency, and cost efficiency, the Company is pursuing
a backward integration strategy across key categories. As part of
this approach, it has set up a dedicated state-of-the-art dhal mill to
unlock value across the entire chain from sourcing and processing
to branding and distribution. This integrated capability is expected
to enhance supply reliability, improve margins through better
value capture, support product traceability and quality assurance,
and provide greater flexibility in meeting evolving consumer and
institutional demand.

Looking ahead, the Company remains focused on unlocking
growth opportunities by prioritising key focus areas, enhancing
product availability, and strengthening brand presence across
categories and consumer segments. These initiatives, combined
with investments in technology and a continued emphasis
on consumer-centric innovation, are intended to position the
Company to sustain leadership in an increasingly dynamic and
competitive marketplace.

Quality

During the fiscal year 2025-26, the Quality function continued to
strengthen systems and capabilities in line with the company's
strategic focus on Sweeteners, Non-Sweeteners, Alcohol,
Staples, and Value-added products. Key developments across
our manufacturing units and Consumer Product Group (CPG)
operations are summarized below:

1. Food Safety Re-certifications and Surveillance Audits

(FSSC 22000 v6.0):

•    Haliyal, Nellikuppam, Pugalur and Bagalkot successfully
completed FSSC 22000 v6.0 re-certification audits by DNV.

•    Sankili successfully completed the FSSC 22000 v6.0
unannounced surveillance audit.

•    Ramdurg successfully underwent the FSSC surveillance
audit, ensuring full compliance with FSSC v6 standards.

2.    Quality Management System / Integrated Management

System (QMS/IMS) Audits:

•    Nellikuppam successfully completed QMS Periodic
Audit 02 by DNV.

•    Sankili successfully completed the IMS surveillance
audit by Intertex.

3.    Customer Audits and Market Confidence:

•    Haliyal successfully completed four customer audits
(Nestle, The Coca-Cola Company, Indian Foods
and Parle Agro).

•    Nellikuppam successfully completed 13 customer
audits, including audits by two new customers (M/s
Evertogen and M/s Meyer Organics).

•    Bagalkot successfully completed customer audits by The
Coca-Cola Company, Pepsi, Hatsun Agro and Parle Agro.

•    For the first time, Ramdurg successfully completed
multiple customer audits, including The Coca-Cola
Company (M/s TCCC), United Breweries, Hatsun Agro
Product Ltd and Perfetti Van Melle.

4.    Regulatory and Statutory Compliance:

•    Haliyal successfully completed the regulatory audit on
process validation and complied with monthly audit
visits by the Department of Agriculture.

•    Nellikuppam successfully completed two regulatory audits,
including a surprise audit by drug control authorities.

•    Across CPG operations, compliance with applicable legal
and regulatory requirements was ensured, including
obtaining statutory licenses for new facilities.

5.    Ethical Trade (SEDEX/SMETA) and Social Compliance:

•    Haliyal successfully completed the SMETA audit and
submitted closure details in the portal.

•    Ramdurg, Sankili and Bagalkot successfully underwent
SMETA 7.0 and achieved compliance.

6.    Kosher / Halal Certifications:

•    Haliyal, Nellikuppam, Bagalkot and Pugalur successfully
renewed Kosher certification.

7.    Strengthening CPG Operations and Food Safety

Controls:

•    Dedicated dal plant operations commenced at
Maraimalai Nagar in June 2025 and statutory licenses
(FSSAI and Factory License) were obtained.

•    At Kalai Associate Sweeteners Packing Unit, quality
system procedures were strengthened through a three-
layer entry system, demarcation for white sugar and
jaggery operations, and installation of grill magnets and
metal detectors on each line.

•    The Quality function continued to support establishment
of required food safety facilities for manufacturing and
sourcing CPG products from Third-Party Units (TPUs).

8.    Capability Building, Committees and Training:

•    Haliyal conducted refresher training on FSSC 22000 for
21 core team members (21-22 August 2025).

•    FoSTaC training was conducted for 32 members at
Nellikuppam and 39 members at Pugalur.

•    Nellikuppam conducted monthly Food Safety Steering
Committee and Laboratory Safety Committee meetings,
with minutes shared to concerned teams.

•    Pugalur developed 13 trained sensory paneliststosupport
product evaluation and continuous improvement.

9.    Infrastructure, Hygiene and Continuous Improvement
Initiatives:

•    At Haliyal, key food safety and quality infrastructure
upgrades were implemented, including laboratory
equipment (spectrometer), enhanced warehouse
canopy, and strip curtains at plant entry points and the
centrifugal area (Plant 2).

•    Haliyal also strengthened workplace organization
through extensive implementation of 1S and 2S as part
of the 5S journey.

•    To imbibe newer technologies, Haliyal conducted trials
for Al-based batch code printing, with deployment
planned in the current year.

10.    Quality Culture: Annual Quality Meet and Quality Week

Celebrations:

•    The Annual Quality Meet was conducted on 10 October
2025, enabling structured discussions to enhance
processes, products and facilities.

•    World Quality Week was celebrated in November
2025 across units and TPUs with the theme "Quality:
Think Differently.".

11.    Customer-Centric Approach, Complaints Management

and Feedback:

•    Customer complaints were tracked down and closed
through RCA-CAPA/CAPA across units: Haliyal (Sugar:
1; CPG: 17), Nellikuppam (Sugar: 5; CPG: 15), Pugalur
(Sugar: 1; CPG: 5), and CPG overall (Sweetener and Non¬
sweetener: 72). Sankili reported nil customer complaints.

•    In Bagalkot, a Customer Satisfaction survey was
conducted and achieved a score of 4.6/5.0, supporting
continual improvement in service quality.

•    Cross-Functional Teams (CFTs) conducted market
visits to gather retail customer feedback and identify
improvement opportunities; teams also visited supplier
units to learn best practices.

12. Business Support for Value-Added Products:

•    Pugalur supported expansion of bulk jaggery business
by developing new customers, including large national
and multi-national FMCG players

These initiatives reflect our continued commitment to food
safety, compliance, ethical practices, capability building, and
customer satisfaction, while strengthening a culture of continuous
improvement across all units and CPG operations.

Research & Development (R&D) and Extension Services

EID Parry continues to remain at the forefront of agricultural
innovation, leveraging a robust research and development
framework to drive sustainable growth. With DSIR-recognised R&D
centres at Pugalur and Nellikuppam (Tamil Nadu) and a premier
breeding station at Haliyal (Karnataka), the Company's integrated
"Field-to-Factory" approach ensures continuous improvement in
sugarcane yields and sugar recovery.

EID Parry is the only sugar company in India with an in-house
sugarcane breeding station at Haliyal, Karnataka, maintaining
a rich germplasm repository of 1,590 accessions. This enables
the development of high-yielding and high-sucrose varieties.
Through intergeneric and interspecific hybridisation programmes,
valuable traits from wild sugarcane relatives have been successfully
introgressed to enhance adaptability and tolerance to water stress
conditions. As a Volunteer Centre under the All India Coordinated
Research Projects (AICRP), the Company undertakes rigorous varietal
evaluation trials at Pugalur (Peninsular Zone) and Nellikuppam (East
Coast Zone) to identify location-specific varieties.

The state-of-the-art tissue culture facility at Pugalur produces virus-
free planting material for both commercial and newly released
varieties. A systematic three-tier nursery programme is implemented
to ensure the supply of disease-free, high-quality seed material,
supported by the Company's captive farm infrastructure.

The soil testing laboratory at Pugalur analyses up to 10,000 samples
annually and issues soil health cards with customised nutrient
recommendations. Irrigation water samples are also analysed for
suitability. Comprehensive soil fertility mapping is undertaken every
five years to refine location-specific fertiliser advisories, which are
disseminated to farmers in local languages to enhance adoption.

The Company actively promotes improved land preparation
techniques and mechanised operations to reduce labour
dependency. Field validation studies on inputs such as AbdA,
humic acid, and seaweed extracts have demonstrated yield
enhancements, and recommended practices have been
communicated for large-scale adoption. Additionally, drones are
being deployed for efficient application of agricultural inputs as
part of yield improvement initiatives.

Regular pest and disease surveillance enables early identification
and management of potential threats. The Company has
pioneered large-scale production of biocontrol agents, including
Trichogramma chilonis (egg parasitoid) and Tetrastichus howardi
(pupal parasitoid), for effective internode borer management.
Further, in collaboration with the Sugarcane Breeding Institute,
Coimbatore, studies are underway for the introduction of
Cotesia (larval parasitoid). The Company has also developed and
disseminated pheromone traps for integrated pest management
across the pest lifecycle.

Major diseases such as red rot are effectively managed through
large-scale application of biocontrol agents, including Trichoderma
viride and Bacillus subtilis, particularly in hotspot areas. Continuous
disease monitoring has enabled timely responses to emerging
challenges such as Pokkah Boeng and crown mealy bug, including
varietal replacement with tolerant strains.

The Company has partnered with the International Finance
Corporation (IFC) to promote climate-smart and sustainable
sugarcane cultivation practices. This includes initiatives such as the
production of pro-tray seedlings and biocontrol agents through

rural entrepreneurship models, as well as capacity-building
programmes for farmers As part of this collaboration, AI-based
technologies have been developed and deployed, in partnership
with Mahindra e-Krishi, for crop harvesting and yield estimation.

Sensor-based autonomous irrigation systems are being
progressively deployed to improve water-use efficiency and
enhance sugarcane productivity, and are gaining increasing
acceptance among farmers.

EID Parry maintains strong engagement with the farming
community through regular interactions, village-level meetings,
training programmes, and mass awareness initiatives. Knowledge
dissemination is further strengthened through in-house publications
and video-based learning modules aimed at improving adoption of
best agronomic practices.

The Company's R&D and extension teams play a pivotal role
in enhancing cane productivity by promoting high-yielding
varieties, ensuring the availability of disease-free planting material,
optimising soil health, and implementing advanced cultivation
practices, including integrated pest and disease management.

The Sugar segment constituted the largest share of the Company's
revenues, contributing 40% of the Company's turnover during FY
2025-26, as against 34% during FY 2024-25.

Segment-wise Performance & Operational Highlights

Sugar

The Company has six sugar plants with a combined capacity of
40,800 TCD. During the year, the total cane crushed in Tamil Nadu
plants was lower at 10.51 LMT as against 12.35 LMT in the previous
year. The average gross recovery was at 8.48% as against 8.14% in
2024-25, an increase of over 4% over the previous year.

Crushing in the Company's Sankili plant at AP was lower at 2.25 LMT
as compared to 3.51 LMT in the previous year. The average gross
recovery was at 8.99 % as against 9.69 % in the previous year, a
decrease of about 7% over the previous year.

The total cane crushed by the units in KN was higher at 25.64 LMT as
against 21.57 LMT in the previous year. The average gross recovery
was at 12.07% as against 11.74% in the previous year. In KN, the
units reported a higher recovery compared to the previous year
with Haliyal at 12.19% and Ramdurg at 12.13%.

Operational performance across regions reflected a mixed trend
driven by climatic conditions, crop dynamics, and execution
efficiency. Tamil Nadu witnessed a decline in crushing volumes
due to reduced acreage and erratic rainfall, although recovery
rates improved on the back of better operational discipline
and favourable conditions during the peak season. Karnataka
delivered a strong rebound, recording higher crushing volumes
and improved recovery, supported by favourable weather, efficient
labour management, and high plant uptime. In contrast, Andhra
Pradesh faced a significant contraction in volumes and recovery
rates, impacted by labour shortages, delayed harvesting, and a
structural shift in farmer preference towards more remunerative
crops, intensifying competition for cane availability.

The overall cane crushed by the Company was 38.40 LMT in 2025¬
26 as against 37.42 LMT in the previous year, an increase of 3%.

During 2025-26, your Company produced 3.54 LMT and sold 3.8
LMT of sugar as against 3.16 LMT and 4.07 LMT respectively in
the previous year.

Co-generation

Your Company possesses an aggregate co-generation capacity of
140 megawatts. Your Company exports nearly 54% of the power
generated. The co-generation segment accounted for 2% of your

Company's revenues. Power generated during the year stood at
3,135 Lakh units as compared to 3,221 Lakh units in previous year.

Tamil Nadu

The units in Tamil Nadu generated 1,044 Lakh units and exported
499 Lakh units of power during the year as against 1,312 lakh units
and 633 Lakh units respectively in the previous year.

Karnataka

The power generated and exported by the Karnataka plants stood
at 1,939 Lakh units and 1,155 Lakh units as against 1,720 Lakh units
and 956 Lakh units respectively in the previous year.

Andhra Pradesh

The unit in Sankili generated 153 Lakh units and exported 45 Lakh
units as against 188 Lakh units and 40 Lakh units respectively
during the last year.

Distillery

During the FY 2025-26, the Company operated five distilleries
located at Sankili, Haliyal, Nellikuppam, Bagalkot and Sivaganga,
engaged in the production of industrial alcohol and ethanol with
a cumulative capacity of 582 KLPD. The entire distillery capacity of
the Company is dedicated towards production of ethanol & ENA
(Extra Neutral Alcohol).

The distillery segment contributed 37% of the Company's revenues
as against 35% in FY 2024-25. The Company's distillery segment
delivered stable performance during the year. The Company
produced 1637 LL of alcohol during the year as compared to 1,644
LL during the previous year. Revenues from the distillery segment
during FY 2025-26 stood at H 1,151.37 Crore as against H 1,101.81
Crore in FY 2024-25.

Ethanol sales during the year produced from B-heavy molasses
stood at 339.74 LL at an average realisation of H 60.80 as compared
to 412.30 LL at an average realisation of H 60.80 in previous year.

Ethanol sales from molasses produced from C-heavy route stood at
144.90 LL at an average realisation of H 60.97 as compared to 112.62
LL at an average realisation of H 60.36 in previous year.

Ethanol sales from syrup route were 117.14 LL at an average
realisation of H 65.61 as compared to 233.78 LL at an average
realisation of H 65.61 in previous year.

Similarly, Ethanol sales from grain route were 341.35 LL at an
average realisation of H 70.60 as compared to 258.13 LL at an
average realisation of H 71.39 in previous year.

Consumer Products Group (CPG)

The portfolio now comprises a diversified product range including
varieties of rice, pulses and millets.

During the year, the segment witnessed a moderation in revenues,
primarily on account of lower Government-mandated release
quotas affecting sweetener volumes, as well as a deliberate
channel rationalisation exercise undertaken in the staples
business to improve working capital efficiency and strengthen the
distribution model.

Revenue from the Consumer Products Group (CPG) segment stood
at H 607.15 Crore in FY 2025-26, as against H 883.89 Crore in FY 2024¬
25, registering a decline of approximately 31% and contributing
19% to the Company's revenues in FY 2025-26 as compared to
28% in FY 2024-25.

The Company continued to strengthen its presence in value-added
sweetener products, including brown sugar, jaggery and other
premium variants, while simultaneously rationalising the staples
portfolio with a focus on higher-margin offerings. As part of its
efforts to improve supply chain efficiencies and quality control,
the Company also commissioned its own dal processing facility
during the year.

PERFORMANCE ANALYSIS, OPPORTUNITIES &
THREATS

India continues to be the world's second-largest sugar producer
and the largest consumer of sugar, with estimated gross production
of approximately 324 LMT for Sugar Year (SY) 2025-26. As of mid-
April 2026, all-India sugar production had reached 274.8 LMT,
representing an increase of around 8% over 254.96 LMT produced
during the corresponding period of the previous year, as per
industry estimates. Maharashtra led the recovery in production,
with output increasing to 99.3 LMT from 80.88 LMT in the previous
year, while Karnataka produced 48.10 LMT as against 40.40 LMT in
the previous year.

While export quotas were initially permitted during the year,
exports were subsequently restricted from May 2026 in view of
evolving domestic and global conditions. Further, the Government
lifted restrictions on ethanol production from sugarcane juice,
sugar syrup, and all categories of molasses with effect from Ethanol
Supply Year (ESY) 2025-26, thereby permitting unrestricted ethanol
production. India's ethanol blending with petrol also crossed the
20% milestone in early April 2026, significantly ahead of the original
target timeline.

However, the Fair and Remunerative Price (FRP) for sugarcane
was revised upward to H355 per quintal (equivalent to H3,550 per
metric tonne) for SY 2025-26, from H3,400 per metric tonne in
SY 2024-25, while the Minimum Selling Price (MSP) for sugar has
remained unchanged at H31 per kilogram since February 2019. This
structural divergence between rising input costs and static output
prices continues to remain the industry's most persistent challenge.
ISMA has renewed its demand for an early revision in MSP, citing
rising production costs, weak ex-mill realisations, and mounting

cane payment arrears The Government has also signalled its intent
to address these concerns and has notified the new Sugar Control
Order, 2025, replacing the 1966 framework with a more technology-
driven and real-time regulatory regime. On the global front, SY
2025-26 is expected to remain in mild surplus, with elevated stock
levels and white premium values in the range of USD 90-105 per
metric tonne, constraining refinery economics globally.

During the year under review, the industry was shaped by a complex
interplay of regulatory interventions, operational constraints, and
evolving market dynamics.

FY 2025-26 was a year of reckoning and recalibration for EID Parry.
The Company operated in a challenging environment marked by
the continued freeze in the MSP for sugar, an upward revision in
FRP, subdued ethanol procurement prices and, most significantly,
the difficult but necessary decision to close the refinery unit of its
wholly owned sugar refinery subsidiary, Parry Sugars Refinery India
Private Limited (PSRIPL), with effect from March 31, 2026. Against
this backdrop, the Company's core operations demonstrated a
measured recovery over the previous year, supported by improved
recovery rates, continued focus on operational efficiency, cost
optimisation and digitalisation initiatives, relatively better distillery
realisations during the early part of the year, and a strategic reset of
the Consumer Products Group (CPG) business.

The strategic clarity that emerged from the decisions taken during
the year, though carrying near-term cost implications, positions the
Company to enter FY 2026-27 as a leaner and more focused operator.
The closure of PSRIPL eliminates a recurring source of balance sheet
stress, financial guarantee exposure and management bandwidth
constraints. Going forward, the Company's operating focus will
continue to be centred on its core businesses of sugar, distillery,
co-generation, nutraceuticals and consumer products, supported by
its strategic shareholding in Coromandel International Limited (CIL).

The Company remains a part of the Murugappa Group and
continues to derive financial flexibility and strategic strength from
its 55.58% equity stake in Coromandel International Limited.

PERFORMANCE ANALYSIS

Sugar and Co-generation

The sugar segment demonstrated a measured operational recovery
in FY 2025-26 following the disruptions experienced in FY 2024¬
25. During the year, total cane crushing across the Company's
operations increased marginally to 38.40 LMT, as compared to
37.42 LMT in the previous year. More importantly, gross recovery
improved to 10.91% from 10.36% in FY 2024-25. This improvement
was driven primarily by better cane quality and maturity, particularly
in Karnataka, together with sustained agronomic interventions and
improved operational efficiencies.

The average landed cost of cane increased to approximately
H4,025 per metric tonne during FY 2025-26, reflecting the higher
cane procurement cost for the sugar season. While the Company
benefited from recovery improvements, the increase in cane cost
continued to exert pressure on segment margins.

Regional performance remained uneven. In Tamil Nadu, cane
availability continued to be constrained, resulting in lower crushing
volumes compared to historical levels. This was attributable to
adverse weather conditions, water stress and the continued shift
by farmers towards alternative crops offering better economic
returns. The relatively lower scale of operations in the State also
limits in-house molasses availability for distillery operations, thereby
requiring external procurement at higher cost in some instances.
In contrast, Karnataka operations delivered a stronger performance
during the year, supported by improved cane availability, better
climatic conditions and disciplined harvesting practices. Certain
units in Tamil Nadu are also expected to continue operations
during the special crushing season (June—July 2026), supported by
favourable late-season cane availability.

Sugar sales volume during FY 2025-26 stood at 3.8 LMT, as
compared to 4.07 LMT in FY 2024-25. Despite relatively stable
volumes, the Company continued its strategic emphasis on
premiumisation through a higher share of institutional sales and
value-added product offerings, leveraging the strength of the
'Parry's' brand across Southern India.

The co-generation segment remained closely aligned with sugar
operations, with performance linked to cane crushing volumes
and bagasse availability. Continued emphasis on steam efficiency,
optimisation of plant operations and enhancement of power
exports contributed to stable performance during the year. The
co-generation business continues to provide both economic and
sustainability benefits through efficient utilisation of by-products.

Notwithstanding the operational improvement, the sugar segment
continued to face structural profitability constraints. The persistent
mismatch between rising cane prices and the unchanged MSP
for sugar has resulted in continued margin compression across
the industry. This structural issue, which has persisted for several
years, continues to affect profitability despite the Company's cost
optimisation efforts.

Management remains of the view that any meaningful and
sustainable improvement in profitability will require policy
intervention, particularly through a revision in the MSP for sugar
and rationalisation of ethanol procurement prices. Until such
structural corrections are implemented, the segment is likely to
continue operating under margin pressure.

Distillery and Biofuel

FY 2025-26 represented the second full year of operations with the
Company's expanded distillery capacity of 582 KLPD. This includes
the 120 KLPD facility at Haliyal, the 45 KLPD expansion at Nellikuppam
commissioned in FY 2024-25, and the 120 KLPD multi-feed grain-
based facility at Sankili, Andhra Pradesh. The segment commenced
the year on a relatively strong note and, during the early part of
the year, recorded one of the few periods in recent times when the
distillery business generated meaningful profitability.

However, performance moderated over the course of the year, with
overall production remaining broadly stable at 1,637 LL as compared
to 1,644 LL in FY 2024-25. This plateau reflected a combination of

factors, including elevated molasses procurement costs in Tamil
Nadu and Andhra Pradesh, stagnant ethanol procurement prices,
and the gradual stabilisation of the grain-based Sankili facility,
which operated below optimal utilisation levels during the year.

Extra Neutral Alcohol (ENA) pricing in Karnataka came under
pressure due to lower allocation of ethanol to sugar-based
distilleries, resulting in higher competition and softer realisations.
While Tamil Nadu has historically enjoyed relatively stronger ENA
pricing, easing inter-State movement restrictions and increased
inflows from neighbouring States have also moderated prices in
that market. The Company expects ENA realisations in Karnataka to
improve after the crushing season.

Over the course of the year, the Company's ability to operate a
flexible multi-feed model, optimising between molasses, syrup and
grain-based feedstocks, enabled it to navigate volatile input costs
and pricing dynamics more effectively. This flexibility remains an
important differentiator in maximising value under varying market
and regulatory conditions.

From a policy standpoint, the Government's decision to permit
unrestricted ethanol production from ESY 2025-26 is a structurally
positive development for the sector. However, the absence of a
commensurate upward revision in ethanol procurement prices
continues to constrain margin expansion. Rationalisation of ethanol
pricing, as consistently represented by the Company and industry
bodies such as ISMA, will be critical to unlocking the full profitability
potential of the distillery segment.

Consumer Products Group (CPG)

The Consumer Products Group (CPG), comprising Sweeteners
(including branded retail sugar, brown sugar, jaggery, low GI sugar
and other premium variants) and Staples (rice, pulses and millets),
had a challenging but strategically important year of transition and
consolidation during FY 2025-26. Standalone CPG revenues for the
year ended March 31, 2026 stood at H607.15 Crore, as compared to
H883.89 Crore in the previous year, representing a decline of 31%.

The decline was attributable primarily to two factors: First, lower
Government-mandated release quotas impacted volumes in the
sweeteners portfolio. Second, the Company undertook a deliberate
channel rationalisation exercise in the staples business with a view
to improving working capital efficiency, tightening credit discipline
and strengthening the overall distribution model.

The segment's performance during the year was also impacted
by elevated levels of aged receivables and recovery challenges,
particularly in the non-sweetener portfolio. In response, the
Company implemented enhanced credit control measures,
strengthened collection mechanisms and instituted more robust
governance frameworks for distributors and stockists.

On the sweeteners side, the reduction in volumes was largely
driven by a calibrated withdrawal from low-margin bulk sales to
the general trade segment, coupled with stricter credit filters and
channel discipline. Importantly, the decline in volumes does not
reflect any material weakening in market position. The Company

continues to maintain an estimated market share of approximately
55% in the branded sweeteners segment across Southern India,
supported by the strong equity of the 'Parry's' brand.

The Company further strengthened its focus on value-added and
premium products, including brown sugar, low glycaemic index
(GI) sugar, jaggery and other differentiated offerings that are
aligned to evolving consumer preferences. The portfolio is now
being progressively positioned across multiple price points with an
emphasis on premiumisation and improved realisation.

In the staples segment, the Company continued to rationalise
its portfolio by focusing on higher-margin SKUs and optimising
its distribution footprint. During the year, it also commissioned
its own dal processing facility, which is expected to improve
control over quality, supply chain efficiency and margins through
backward integration.

The channel correction exercise undertaken during the second and
third quarters of FY 2025-26 also involved one-time provisioning
of HI 5.73 Crore towards receivables. These corrective actions
substantially stabilised the business, and the restructured operating
model became effective by the end of Q4 FY 2025-26.

Accordingly, the CPG segment is expected to enter FY 2026-27
on a stronger and more sustainable footing, supported by tighter
working capital management, a more disciplined route-to-market
approach and improved focus on profitability.

Nutraceuticals

At the consolidated level, the nutraceuticals business, comprising
the Company's domestic operations and its wholly owned
subsidiary, US Nutraceuticals Inc., registered revenues of $2.05 Crore
for the year ended March 31,2026, representing a de-growth of 5%
over $2.15 Crore in the previous year.

This improvement was driven primarily by the commencement
of exports to European markets following receipt of the requisite
regulatory certifications, together with a recovery in demand in
the United States market. The segment continues to focus on a
differentiated portfolio of high-value products, including organic
spirulina, chlorella, carotenoids, astaxanthin and lutein/zeaxanthin,
catering to global demand for plant-based and wellness-oriented
nutraceutical ingredients.

The business derives a significant portion of its revenues from
exports, with key markets including North America, Europe and
select Asian geographies. The Company continues to strengthen
its position in certified organic and science-backed products,
enabling premium realisations and differentiation in a highly
competitive market.

The long-term strategy for the nutraceuticals segment remains
focused on building a science-driven, high-margin wellness
ingredients platform through sustained investments in product
development, clinical validation, regulatory compliance and
market expansion.

The Company has demonstrated disciplined capital allocation, with
capital expenditure during FY 2025-26 remaining largely moderate
and directed towards routine modernisation and operational
efficiency improvements. This prudent approach has enabled the
Company to balance growth with financial stability.

Leading credit rating agencies have maintained the Company's
short-term rating at A1+ for its commercial paper programme,
underscoring the strength of its liquidity position and financial
discipline. During the year, CRISIL revised the long-term rating to
CRISIL AA- (Stable Outlook) in August 2025. This reflects expectations
of only modest near-term improvement in cash generation
against relatively elevated working capital borrowings, while also
recognising the Company's strong financial flexibility arising from
its strategic investment in Coromandel International Limited.

The Company's equity stake in CIL continues to provide substantial
financial flexibility and strategic optionality, enabling it to mobilise
resources for growth initiatives and manage financial commitments
effectively. This was demonstrated during the year through the
Company's ability to fund the closure of PSRIPL without undue
financial strain.

EID Parry's financial risk profile is expected to remain moderate over
the near to medium term. Despite controlled capital expenditure,
incremental working capital requirements are likely to keep debt
levels relatively elevated. The Total Outside Liabilities to Tangible
Net Worth (TOL/TNW) ratio remained in the range of 1.36 times,
while interest coverage remained at approximately 2.95 times over
in the near term, as compared to around 3.65 times in FY 2024-25.
Improvement in leverage metrics over the medium term will depend
on sustained cash generation and prudent capital deployment.

The Company's liquidity position remained adequate, supported by
net cash accruals of approximately H694 Crore, largely anchored by
dividend inflows from CIL.

From an operating perspective, the business risk profile showed
moderate stabilisation during FY 2025-26, supported by disciplined
cane crushing of 38.40 LMT during the year. However, overall
performance remained impacted by adverse climatic conditions,
including erratic rainfall in Tamil Nadu and declining acreage in Tamil
Nadu and Andhra Pradesh, which constrained cane availability and
affected sugar segment performance.

The full-year contribution from the expanded distillery capacity
of 582 KLPD provided meaningful support to overall operations,
partially offsetting the headwinds in the sugar segment. In
parallel, the Consumer Products Group underwent a strategic
channel correction exercise, resulting in transitional costs during
the year, the impact of which is expected to normalise from FY
2026-27 onwards.

With these structural improvements now embedded in the
operating model, the Company expects revenues to grow in a stable
and sustained manner from FY 2026-27 onwards, supported by

steady distillery volumes, improving realisations and a recalibrated
and more efficient CPG platform.

Revenue from operations stood at H3,120.26 Crore in FY 2025¬
26, as compared to H3,168.12 Crore in FY 2024-25. Loss after tax
for the year was H708 Crore, as against a loss of H428 Crore in
the previous year. While revenues from the distillery and other
segments improved, overall profitability remained impacted by
the absence of a meaningful revision in ethanol procurement
prices, limited availability of molasses, elevated input costs and
impairment provisions.

Total expenses during the year were H 3,424.42 Crore, as compared
to H3,449.44 Crore in FY 2024-25. Raw material costs constituted
71% of revenue from operations and increased during the year,
primarily due to higher cane procurement costs following the
upward revision in FRP Employee expenses accounted for 6% of
revenue and declined by 2% from H200.83 Crore in FY 2024-25 to
H197.11 Crore in FY 2025-26. Repairs and maintenance expenditure
accounted for 3.11% of revenue.

At the industry level, gross sugar production in India for the 2025¬
26 marketing year is estimated at approximately 324 LMT, with
around 31 LMT diverted for ethanol production and exports. Based
on an opening stock of about 50 LMT and estimated domestic
consumption of approximately 283 LMT, industry bodies such
as ISMA have projected closing stock levels of around 53 LMT by
September 30, 2026.

OPPORTUNITIES

With its distillery capacity of 582 KLPD fully operational, and with
the Government of India having lifted restrictions on ethanol
production from ESY 2025-26, EID Parry is well-positioned to benefit
from the long-term growth potential of the Ethanol Blending
Programme. India has already achieved over 20% ethanol blending
in petrol ahead of the original timeline, and policy direction
continues to support expansion beyond E20. The Company's multi¬
feed capability at Sankili, together with molasses- and syrup-based
operations across Haliyal, Nellikuppam and Bagalkot, provides
significant operational flexibility to optimise feedstock usage in line
with prevailing price dynamics and regulatory developments. A
rational upward revision in ethanol procurement prices remains a
key potential catalyst for improving distillery margins.

Recent geopolitical developments, including instability in global
energy markets, have renewed India's strategic focus on reducing
dependence on fossil fuels. This is expected to accelerate policy
support for biofuels and enhance the long-term viability of
the ethanol sector, which augurs well for integrated players
such as EID Parry.

On the sugar front, all-India production for SY 2025-26 is marginally
higher than in the previous season, with the Company's Karnataka
operations demonstrating a strong recovery. The introduction of
the Sugar (Control) Order, 2025 and the proposed reforms under
the sugarcane regulatory framework, together with the possibility
of an MSP revision, represent important policy tailwinds. These

measures are expected to improve transparency, strengthen
regulatory oversight and potentially enhance realisations, thereby
contributing to greater stability in the sugar sector.

The Company also has significant opportunities in value-added
segments within the sugar business. Increasing consumer preference
for natural and less-refined sweeteners presents growth potential in
products such as jaggery, brown sugar and specialty sweeteners
The Company's ongoing expansion in jaggery manufacturing and
its focus on innovative utilisation of by-products further strengthen
its ability to capture value across the sugar value chain.

The Consumer Products Group continues to offer attractive long¬
term potential, supported by rising consumer preference for
branded, differentiated and value-added food products. Increasing
demand for premium and less-refined sweeteners, including
jaggery, brown sugar and other specialty products, presents a
meaningful opportunity for the Company to expand its consumer
franchise in higher-margin categories.

The Company's strong brand recall in Southern India, established
market position in branded sweeteners and growing focus on
premiumisation provide a solid platform for future growth. In
addition, the restructuring undertaken in the staples business,
together with backward integration through in-house dal
processing, is expected to improve capital efficiency and strengthen
the quality of earnings over time.

The Company is also actively evaluating opportunities to expand
its consumer-facing portfolio through innovation-led product
development and selective entry into adjacent food categories.
Over the medium term, a more focused portfolio, sharper
distribution and improved unit economics have the potential to
position CPG as a more scalable and profitable consumer business.

Complementing these initiatives, the Company's investments in
agritech, encompassing precision agriculture, digital agronomy
and digitised cane procurement, are beginning to yield measurable
benefits. These interventions are expected to progressively
enhance cane availability, improve recovery rates and strengthen
farmer engagement, particularly in regions where competition
from alternative crops remains a key challenge.

THREATS

The most significant structural risk facing EID Parry and the Indian
sugar industry continues to be the widening gap between the FRP
for sugarcane and the MSP for sugar. The FRP for the upcoming
Sugar Year (SY) 2026-27 has been fixed at H365 per quintal, reflecting
a steady upward trend over the years, while the MSP for sugar has
remained unchanged at H31 per kilogram since February 2019.

In addition to the rising FRP, there have been instances of State-
level interventions, particularly in Karnataka, where higher cane
prices have been mandated through Government Orders following
farmer agitations. Such interventions further increase input
costs and adversely affect industry profitability, including that
of the Company. Industry bodies such as ISMA have consistently
highlighted that this structural mismatch between cane prices and

sugar realisations is leading to increased cane payment arrears and
poses a significant challenge to the financial viability of sugar mills.

For EID Parry, whose operations are predominantly concentrated in
Southern India, the impact is more pronounced due to structurally
lower cane yields and recovery rates, particularly in Tamil Nadu and
Andhra Pradesh, as compared to northern regions. While Karnataka
provides relative stability, the overall cost-price imbalance
compresses margins on every tonne of sugar produced, making a
timely revision in MSP critical for restoring sectoral profitability.

Labour availability, particularly for cane harvesting, remains another
area of concern. Continued dependence on migrant labour,
coupled with increasing shortages, could affect timely harvesting
and operational efficiency. Accelerated adoption of mechanised
harvesting and development of local labour ecosystems will be
essential to mitigate this risk.

Compounding these challenges, ethanol procurement prices by
Oil Marketing Companies have largely remained unchanged in
recent years, even as grain-based ethanol has come to dominate
the national ethanol supply mix. This has resulted in increased
competitive pressure on sugar-based distilleries and constrained
the profitability of ethanol operations.

Tamil Nadu and Andhra Pradesh continue to face lower cane
availability due to water scarcity, adverse climatic conditions
and a shift by farmers towards alternative crops offering better
remuneration. This has significantly impacted operations in
these regions and constrained molasses availability for distillery
operations, in some cases necessitating procurement from external
sources at higher logistics costs.

While Karnataka operations have performed relatively better in
terms of cane availability and recovery, challenges such as diversion
or "poaching" of cane by competing mills persist. This intensifies
competition for quality cane, increases procurement costs and may
lead to sub-optimal capacity utilisation at certain units.

The structural challenges associated with the Company's
geographic footprint, particularly in Tamil Nadu and Andhra
Pradesh, necessitate sustained investments in agronomic practices,
farmer engagement and yield enhancement. In addition, supportive
policy interventions and incentives for cane cultivation will be
critical to arrest the decline in acreage and ensure the long-term
sustainability of operations in these regions, failing which certain
units could face risks to their economic viability.

Export policies, ethanol pricing, diversion norms and Government
decisions relating to MSP and FRP will continue to be key
determinants of financial performance. On the global front, although
the closure of PSRIPL has eliminated the Company's direct exposure
to refinery spread volatility, global sugar market dynamics, including
price volatility and supply-demand imbalances, will continue to
influence domestic realisations and export opportunities.

The Consumer Products Group faces increasing competitive
intensity from both organised and unorganised players across
the sweeteners and staples categories. Key risks include pricing
pressures, rapid shifts in consumer preferences, expanding product
portfolios by competitors and rising expectations in relation to
quality, packaging and brand differentiation.

The segment is also exposed to execution risks relating to channel
management, particularly in respect of distributor performance,
receivables control and working capital discipline. In categories
where route-to-market efficiency and shelf presence are critical, any
weakening in channel governance or collection mechanisms could
affect both growth and profitability.

Further, the need for sustained brand-building, advertising and
promotional expenditure is increasing across consumer categories.
If such expenditure is not calibrated effectively, it could exert
pressure on margins, particularly during periods of portfolio
transition or channel restructuring.

COMPANY'S PERFORMANCE AND OUTLOOK

EID Parry exits FY 2025-26 as a more focused and resilient
organisation. The Company's five core operating businesses sugar,
distillery, co-generation, nutraceuticals and consumer products
form the foundation for its next phase of growth.

During the year, the Company recorded a marginal increase in cane
crushing to 38.40 LMT, as compared to 37.42 LMT in FY 2024-25.
Karnataka operations witnessed a strong recovery, supported by
improved cane availability and favourable climatic conditions.
Recovery rates across the Company's units improved over the
previous year, reflecting the benefits of sustained agronomic
interventions and better-quality cane procurement. However,
cane availability in Tamil Nadu and Andhra Pradesh continues
to remain a structural challenge due to water scarcity, adverse
weather patterns, higher cost of cultivation and farmers shifting to
alternative crops offering better economic returns. These factors are
likely to continue exerting pressure on operations in these regions,
notwithstanding the various cost optimisation and efficiency
improvement initiatives undertaken by the Company.

Going forward, the Company's Karnataka operations are expected
to provide greater stability to the overall sugar business. In addition,
the Company is strengthening its presence in value-added
segments. Its foray into jaggery manufacturing is being further
expanded with the setting up of a second unit with a capacity of
475 TCD at Bagalkot, Karnataka, in addition to the existing unit at
Pugalur, Tamil Nadu. This is expected to enable the Company to
capitalise on increasing consumer preference for brown and natural
sweeteners as alternatives to refined sugar.

The Company is also exploring opportunities to enhance value
realisation from by-products, particularly bagasse, through
initiatives in sustainable packaging, soilless media and other
value-added applications. These initiatives are aligned with the
Company's broader strategy of improving margins and diversifying
revenue streams.

The cost optimisation programme initiated in the previous year
continued during FY 2025-26 and has resulted in significant
rationalisation across the manufacturing value chain. These

measures are expected to yield sustained benefits in terms of
improved cost efficiency and operational stability going forward.

On the policy front, a revision in the MSP for sugar and an upward
adjustment in ethanol procurement prices remain critical for
improving industry profitability. Industry bodies, including ISMA,
have made representations in this regard, and policy discussions
are ongoing. Any favourable revision in these parameters would
significantly enhance the earnings potential of both the sugar and
distillery segments.

Consumer Products Group

Following the channel correction and receivables clean-up
undertaken during FY 2025-26, the Consumer Products Group is
expected to enter FY 2026-27 on a stronger operational footing.
The measures implemented during the year, including tighter
credit discipline, strengthened collection systems and enhanced
governance over distributors and stockists, are expected to
improve working capital efficiency and support a more resilient
operating model.

Going forward, the Company is recalibrating the CPG business with
a clear emphasis on revenue quality, profitability and disciplined
capital allocation. Both the sweeteners and staples businesses are
being repositioned on a more capital-efficient and profitability-led
distribution model, with sharper focus on operating discipline and
contribution margins.

Within this broader strategy, the Company is prioritising the
focused development of its sweeteners portfolio through better
pricing discipline, sharper distribution and improved product mix.
In parallel, it is expanding its premium "browns" portfolio, including
jaggery and other differentiated sweetening products, with the
objective of increasing the overall profit pool.

The staples segment will continue to be managed selectively, with
emphasis on cash efficiency, portfolio rationalisation and disciplined
deployment of capital, rather than broad-based expansion. At
the same time, the CPG R&D function continues to work on new
product development aligned to changing consumer preferences,
supported by market insights and research-led innovation.

The Company also remains open to portfolio expansion through
selective inorganic opportunities in adjacent food categories
such as culinary products, spices, ethnic snacks and dessert
mixes, where such opportunities are strategically relevant and
commercially attractive.

Overall, the Company expects the corrective and strategic
measures undertaken during FY 2025-26 to translate into improved
operational and financial performance for the CPG business from FY
2026-27 onwards.

EID Parry's financial flexibility, supported by its strategic stake in
Coromandel International Limited and the institutional strength of
the Murugappa Group, provides a strong platform for its continued
transition into a diversified food, nutrition and biofuel enterprise
without compromising its credit profile. The reaffirmation of the
Company's short-term ratings and the stable long-term outlook

by credit rating agencies reflect the underlying strength of its
financial position.

The Board remains committed to transforming the Company's
integrated sugarcane value chain into a consistently profitable
operating model, strengthening the Consumer Products Group into
a scalable consumer brand platform, and building a resilient and
future-ready business aligned to long-term growth opportunities.

NUTRACEUTICALS DIVISION

Industry Overview

The global dietary supplements market continues to witness steady
growth and is projected to expand at a CAGR of approximately
7% between 2025 and 2030, reaching an estimated market size
of around USD 64 billion. Key markets include the United States,
China, and Western Europe, while emerging growth opportunities
are visible in the Asia-Pacific region, the Middle East, and Africa.

This growth is driven by increasing consumer interest in plant-
based nutrition, rising demand for dietary supplements, and
heightened awareness of environmental sustainability. Key
industry trends include a growing focus on gut health, longevity
and healthy ageing, vitality, mental well-being, sleep quality,
weight management including the impact of GLP-1 therapies and
women's health.

Within the dietary supplements segment, Spirulina continues to
be a prominent product due to its energy-enhancing properties,
rich phycocyanin content, role in weight management, and
immune-support benefits. Chlorella is also gaining traction owing
to its benefits for liver health, natural detoxification, and as a source
of Vitamin B12.

In the functional food segment, microalgae are increasingly being
utilised in plant-based green blends. The green blends category is
expected to grow further in the coming years, making it strategically
important for the Company to scale its presence in this segment to
expand its customer base and enhance value realisation.

However, the industry continues to face certain challenges,
including intense price competition from imports particularly
with over 75% of Asian Spirulina products sourced from China at
lower prices limited consumer awareness on product quality, and
geopolitical uncertainties such as tariffs in the United States and
ongoing global conflicts.

To strengthen the Company's unique selling proposition (USP),
a focused marketing and public relations strategy is being
implemented. The Company aims to deepen direct engagement
with customers, particularly in Europe, and to offer a differentiated
portfolio comprising both premium and cost-effective product
ranges. Emphasis continues to be placed on sustainability, product
quality, and scientific validation through clinical studies, thereby
establishing clear differentiation from lower-cost alternatives.

While the Company accounts for approximately 4% of the global
Spirulina market by volume, it holds a significantly stronger position

in the certified organic segment, with an estimated share of 17¬
20%, enabling a premium market positioning.

Business Review

During the year, the Company achieved 89% of its Spirulina
production target and 53% of its Chlorella production target.
The reduction in Spirulina production was a conscious decision
driven by inventory optimisation, while Chlorella production was
impacted by operational challenges during the first half of the
year. Production stabilised in the second half following resolution
of these issues.

On the quality front, the Company remained fully compliant with all
applicable standards relating to quality, safety, and environmental
systems, and successfully completed renewals under ISO, USP,
and BRCGS certifications. The Company also continued to meet
stringent organic certification requirements, including USDA NOP,
EU Organic, and Naturland standards.

From a commercial perspective, the Company faced challenges
arising from low-priced Chinese imports in key markets such
as the United States and Europe, as well as the impact of tariffs
on exports to the United States. Despite these headwinds, the
Company maintained strong engagement with its customer base
and achieved approximately 60% of its projected sales volumes.

The Company supported its commercial efforts with scientific
initiatives, including publication of a white paper titled "Are
We Sourcing the Right Spirulina?" onNutraingredients.comin
November 2025, which was also disseminated through digital
platforms to enhance market awareness.

On the research front, a human clinical study on Vitamin B12
content in Chlorella was completed, confirming that the product
contains between 350-400 mcg of Vitamin B12 per 100 grams.
Considering the recommended daily allowance of 2.5 mcg and
typical absorption levels, approximately 1 gram of the Company's
Chlorella is sufficient to meet daily Vitamin B12 requirements. These
findings are being leveraged to strengthen product positioning.

During the year, the Company's wholly owned subsidiary, US
Nutraceuticals Inc., recorded sales of $2.05 Crore. While the core
Saw Palmetto portfolio declined by 40%, this was partially offset
by strong growth in Astaxanthin (20%) and joint health products
(38%). The Greens segment continued to face headwinds,
declining by 38%.

The Company's branded Saw Palmetto ingredients, Serevelle
(for hair health and growth) and USPlus® PRO (for men's urinary
health) continued to gain traction, supported by favourable clinical
outcomes and increased customer acceptance.

Outlook

The Company's key strategic objective is to strengthen its leadership
position in the dietary supplements and functional food markets in
the United States and Europe, which are currently characterised by
heightened competition from low-cost alternatives.

To achieve this, the Company will focus on:

•    Strengthening its value proposition through scientifically
validated products aligned with emerging health trends

•    Expanding private label offerings for leading global brands

•    Enhancing presence in the functional food segment,
particularly in plant-based green blends

•    Exploring new markets, including Canada, the Middle East, Sri
Lanka, Nepal, and Africa

•    Developing innovative product formulations and delivery
formats to enhance differentiation

Additionally, the Company expects continued growth in the

joint health and Astaxanthin segments, which are projected to

outperform other categories in the coming years.

COMPANY FINANCIAL PERFORMANCE (STANDALONE)

FINANCIAL OVERVIEW
Net Worth

The Net worth as on March 31,2026, was H 1,872.84 Crore as against
H 2539.76 Crore as on March 31,2025. Capital Redemption Reserve
remained unchanged during the year.

Borrowings

The total borrowings of the Company increased to H 1,335.94 Crore
in 2025-26 from H 1,210.74 Crore in 2024-25. The total debt to equity
ratio stood at 0.71 as compared to 0.48 in the previous year. Working
capital borrowings (including supplier finance borrowings) utilized
were H 1,119.07 Crore as on March 31, 2026, as against H 1,004.16
Crore in the previous year.

Fixed Assets

During the year, the company incurred H 78.53 Crore as additions
to Fixed Assets as against H 416.47 Crore during the previous year.

Investments

The total investment of the Company as of March 31,2026, was H 626
Crore as against H 662 Crore in FY 2024-25. The decrease was majorly
on account of impairment of investment in PSRIPL, sale of shares in
CIL and Algavista which is offset by revaluation of other investments.

Rating

The Company's long-term rating was downgraded to CRISIL AA-
(stable outlook) in 2025-26 and short term rating was maintained
at A1+ (CRISIL and CARE).

Book Value and Earnings per Share

The Book Value per share of the Company stood at H 105.29 as on
March 31, 2026, as against H 142.84 as on March 31, 2025. Earnings
per share for the year ended March 31, 2026 stood at H (39.83), as
against H (24.12) for the year ended March 31,2025.

EBIDTA

The Earnings before Interest, Depreciation, Tax and Amortization
(excluding exceptional items) for the year was H 398.92 Crore
representing 13% of total revenue as against H 251.81 Crore
representing 8% of the total revenue in the previous year.

EBIT

EBIT for the year was H 217.76 Crore (excluding exceptional items)
as against H 76.47 Crore (excluding exceptional items) in the
previous year 2024-25.

Finance Charges

Finance charges for the year stood at H 73.71 Crore, as against
H 68.91 Crore in the previous year 2024-25.

Depreciation

Depreciation for the year was at H 181.16 Crore as against H 175.34
Crore during the previous year 2024-25.

PBT

Profit Before Tax for the year was at H (685.71) Crore (including net
exceptional loss of H 829.76) as against H (419.59) Crore (including
net exceptional loss of H 427.15 Crore) in the previous year 2024-25.

PAT

Profit After Tax for the year was at H (708.28) Crore as against
H (428.30) Crore in the previous year 2024-25.

Revenue

In accordance with the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (Listing Regulations), the
Company is required to give details of significant changes (change
of 25% and more as compared to the immediately previous financial
year) in key financial ratios.

Ratios where there has been significant change from the financial
year 2024-25 to 2025-26:

•    Increase in Debt Equity Ratio is due to increase in short term
borrowings and reduction in total equity on account of
exceptional items

•    Increase in debt service coverage ratio due to increase in
earnings for the year.

•    Increase in operating profit margin, ROE on account of
increase in dividend income for the current year.

•    Increase in return on equity ratio on account of increase in
dividend income for the current year.

•    Increase in net profit ratio on account of increase in dividend
income for the current year

•    Increase in return on capital employed on account of increase
in dividend income for the current year

•    Increase in return on investment is due to changes in the fair
value of other investments as at the end of the year.

RISK MANAGEMENT

The company has a robust Risk Management Framework, across
various levels of the organization :

•    to anticipate, measure and evaluate business risks
& opportunities,

•    identify & adopt mitigating strategies thereby achieve
business objectives with minimum adverse impact.

The Risk Management Committee periodically reviews the risks
and opportunities around the business objectives and suggests
mitigating measures to be carried out.

During FY 2025-26, the company continued to strengthen its Risk Management Framework through structured review, assessment and
monitoring ofmaterial risks across the company. The following are the identified risk categories in the industry in which your company operates :

INTERNAL FINANCIAL CONTROLS

The Company has aligned its Internal Financial Controls (IFC)
framework with the requirements of the Companies Act, 2013 ("the
Act"). A robust IFC framework has been established, comprising
entity-level policies, defined processes, and detailed standard
operating procedures. Clear roles and responsibilities have been
assigned to personnel across various levels to ensure effective
implementation and monitoring of controls.

The internal control systems are commensurate with the size,
scale, and complexity of the Company's operations. These controls
are designed to provide reasonable assurance with respect to the
accuracy and reliability of financial and operational information,
compliance with applicable laws and regulations, safeguarding of
assets, prevention and detection of frauds and errors, and proper
authorisation of transactions. The Company has also established
processes for the formulation and periodic review of annual and
long-term business plans.

The Company leverages a robust Enterprise Resource Planning (ERP)
system, SAP, as a key enabler for recording transactions, financial
consolidation, and generation of management information.

The internal audit function is carried out by an independent
external audit firm, complemented by a lean in-house team that
undertakes specific management assignments. The internal audit
is conducted in accordance with an annual audit plan, which is
reviewed and approved by the Audit Committee. Internal audit
reports are presented to the Audit Committee on a quarterly basis
for its review and deliberation.

The Management has assessed the effectiveness of the Company's
internal financial controls over financial reporting as at March 31,
2026, and is of the opinion that such controls are adequate and
operating effectively. The Company adopts a blended approach
to internal audit, combining in-house domain expertise with the
specialised capabilities of external auditors, thereby enhancing the
overall effectiveness of its internal control framework.

SUBSIDIARY COMPANIES

There has been no change in the business of the subsidiaries during
the year under review.

In accordance with the provisions of Section 129(3) of the
Companies Act, 2013, the Company has prepared consolidated
financial statements comprising the financial statements of the
Company and its subsidiary companies, which form part of this
Annual Report. A statement containing the salient features of the
financial statements of the subsidiary companies, joint ventures,
and associates is provided in Annexure A to this Report.

Pursuant to Section 136(1) of the Act, the Annual Report of the
Company, including the standalone and consolidated financial
statements, has been placed on the Company's website at:https://
www.eidparry.com/

Further, the audited financial statements of the subsidiary
companies, along with related detailed information, are also
available on the Company's website at:https://www.eidparry.
com/financials/

The annual accounts of the subsidiary companies will be available
for inspection by Members at the Registered Office of the Company
during business hours on all working days up to the date of the
ensuing Annual General Meeting. A copy of the financial statements
of the subsidiary companies will also be made available to any
Member upon request.

Parry Sugars Refinery India Private Limited (PSRIPL)
Operational Performance and Market Environment

During FY 2025-26, global sugar markets experienced heightened
volatility. Declining raw sugar prices, driven by increased production
in Brazil and Thailand, coupled with relatively strong demand for
refined sugar, supported higher white premiums during the first half
of the year. However, in the second half, increased supply from key
producing countries and the announcement of sugar exports from
India exerted downward pressure on white premiums. Additionally,
falling international prices and lower-than-expected domestic
production constrained export opportunities for Indian mills.

Despite these challenging conditions, Parry Sugars Refinery India
Private Limited (PSRIPL) continued to be globally recognised as an
efficient re-export refiner, catering to international trade as well as
global food and beverage and institutional customers. Supported
by favourable market conditions in the early part of the year and
opportunistic hedging strategies, PSRIPL recorded its highest-
ever sales volume of 8.44 LMT during FY 2025-26. However, due
to intensified competition from surplus exports from Thailand and
Brazil, the share of containerised sales declined to 18% during the
year, as compared to 40% in the previous year.

The decline in global sugar prices led to a reduction in turnover to
H 3,814.33 Crore for FY 2025-26, as against H4,285.17 Crore in FY
2024-25. Notwithstanding this, improved operating efficiencies
particularly in utilities and material handling along with softer raw
sugar prices, enabled PSRIPL to optimise its refining costs. Finance
costs also reduced from H49.00 Crore in FY 2024-25 to H37.64 Crore
in FY 2025-26, primarily due to equity infusion by EID Parry (India)
Limited and better working capital management.

Closure of Operations

PSRIPL had originally established a 2,000 TPD sugar refinery at
Vakalapudi Village, Kakinada, in 2006 as a Special Economic Zone
(SEZ)-based export-oriented unit. The business model was premised
on importing raw sugar, refining it into white sugar, and exporting
the refined sugar to global markets, benefitting from favourable
white sugar premiums. The project viability was further supported
by the availability of natural gas and the ability to generate and
export surplus power.

Over the years, however, several structural changes adversely
impacted this business model. The non-availability of natural gas
necessitated a shift to coal-based operations, resulting in higher
operating costs. Further, the sustained decline in white premiums

led to compression in refining margins, while revenue from power
exports reduced significantly from initial projections. In addition,
operational disruptions including plant shutdowns, demurrage
costs, inventory write-offs, hedge losses, and high finance
costs resulted in significant accumulated losses. As at March 31,

2025,    accumulated losses stood at approximately H1,406 Crore.

In view of these persistent structural challenges and the continued
adverse global outlook, the Board of Directors of PSRIPL and of the
Company, at their respective meetings held on March 31, 2026,
approved the closure of operations of the refinery unit with effect
from the close of working hours on that date.

Pursuant to the above decision, EID-Parry (India) Limited has
assessed the financial implications arising from the closure of
operations of PSRIPL and has recognised an impairment charge of
H40,060 lakhs in its financial statements for the year ended March 31,

2026,    in accordance with applicable Indian Accounting Standards.
EID Parry had previously provided financial guarantees and issued
letters of comfort to the lenders of PSRIPL. In light of the closure
and the assessment that PSRIPL may not have adequate financial
resources to meet its obligations, the Company has reassessed and
remeasured its financial guarantee obligations after considering the
estimated realisable value of PSRIPL's assets. Accordingly, a provision
of H59,132 lakhs has been recognised towards such financial
guarantee obligations for the year ended March 31, 2026.

During the year under review, the Company infused H350 crore into
PSRIPL by subscribing to 35,00,00,000 equity shares of H10 each
under a rights issue.

Subsequent to the year end, the Company further infused H610
crore into PSRIPL by subscribing to 61,00,00,000 equity shares of
H10 each under a rights issue, to enable PSRIPL to meet its closure-
related obligations.

Pursuant to the cessation of operations, the financial statements
of PSRIPL for the FY 2025-26, have been prepared on a non-going
concern basis. Accordingly, assets have been carried at the lower of
their carrying value and net realisable value, and liabilities have been
recognised based on the estimated amounts expected to be settled.

PSRIPL incurred a loss of H265.51 Crore during FY 2025-26, primarily
on account of closure-related costs and impairment of fixed assets.

Parry International FZCO (formerly Parry International
DMCC)

During the year, Parry International FZCO (PFZCO), a wholly owned
subsidiary of PSRIPL, reported revenue income (including write¬
back on loan and trade payables to PSRIPL) of AED 30.69 million
and a profit before tax of AED 27.72 million.

PFZCO has ceased operations and is currently under a voluntary
liquidation process, which is under consideration by the Dubai
Multi Commodities Centre (DMCC), Dubai, United Arab Emirates.

US Nutraceuticals Inc.

During the year, the Company's wholly owned subsidiary, US
Nutraceuticals Inc., achieved sales of $2.05 Crore. While the core

Saw Palmetto portfolio witnessed a decline of 40%, this was partially
offset by strong growth in Astaxanthin (20%) and joint health
products (38%). The Greens segment continued to face headwinds,
with sales declining by 38%.

At US Nutraceuticals, the Company's branded Saw Palmetto
ingredients, Serevelle, developed for hair health, growth, and
reduction in hair shedding, and USPlus® PRO, positioned for men's
urinary health are gaining traction, supported by favourable clinical
studies and demonstrated results.

Alimtec S.A.

As intimated to the Stock Exchanges pursuant to the Company's
communication dated August 9, 2023, the Board approved the sale
of assets and dissolution of Alimtec S.A., the Chilean subsidiary and
a wholly owned subsidiary of US Nutraceuticals Inc., on account of
the non-viability of its operations.

The operations of Alimtec S.A. were discontinued during FY 2023¬
24, and its assets, including land, were subsequently disposed of.
The dissolution process has been completed in accordance with
the applicable laws of Chile. The certificate of dissolution dated
September 22, 2025, was received by the Company on September
23, 2025, and the same was duly intimated to the Stock Exchanges
on the same date.

Coromandel International Limited (CIL)

Coromandel International Limited ("CIL") delivered a strong and
resilient performance in FY 2025-26, operating in a dynamic
and challenging business environment. The year was marked by
moderation in demand in certain segments and an escalation in
raw material prices, particularly during the second half, leading to
increased cost pressures across the value chain. Notwithstanding
these challenges, the Company demonstrated operational agility
and disciplined execution, enabling it to sustain performance
and further strengthen its position as a leading agri-solutions
provider in India.

CIL continued to make progress on its strategic priorities during
the year, supported by a capital expenditure programme of over
H1,500 Crore, largely directed towards backward integration and
capacity expansion. During the year, CIL completed the acquisition
of a majority stake (53.69%) in NACL Industries Limited, significantly
strengthening its presence in the crop protection segment. This
acquisition is expected to enhance the Company's product portfolio,
manufacturing capabilities, and distribution reach across both
domestic and international markets, and is aligned with its strategy
of building a diversified and integrated agri-solutions platform.

Innovation and digital transformation remained key drivers
of growth and competitiveness. CIL advanced its product
development pipeline while increasing adoption of AI-driven
analytics and digital tools to improve decision-making, enhance
operational efficiency, and deepen engagement with the farming
community. These initiatives have reinforced the Company's ability
to respond effectively to evolving market dynamics and to deliver
value-added solutions across the agricultural value chain.

During the year, CIL also strengthened its sustainability initiatives,
with focused efforts towards improving energy efficiency, water
management, waste reduction, and emissions performance, while
maintaining a strong emphasis on safety across operations.

In terms of financial performance, CIL reported consolidated total
income of H31,827 Crore for FY 2025-26, representing a growth of
approximately 30% over H24,444 Crore in FY 2024-25. The Company
reported a consolidated profit after tax (PAT) of H1,898 Crore. The
net debt-to-equity ratio remained at zero as at March 31, 2026,
reflecting a robust balance sheet position.

As at December 2025, the Company held 16,54,55,580 equity shares
in CIL, representing 56.08% of CIL's paid-up equity share capital.
Pursuant to the approval of the Board of Directors at its meeting
held on February 12, 2026, the Company divested 15,00,000
equity shares of CIL (approximately 0.51% of its paid-up equity
share capital) on March 10, 2026. Consequently, the Company's
shareholding in CIL stands reduced to 16,39,55,580 equity shares
representing 55.58%.

JOINT VENTURE COMPANY

Algavista Greentech Private Limited (AGPL)

During the year, the Company entered into a Share Purchase
Agreement (SPA) with its Joint Venture (JV) partner, Synthite
Industries Private Limited, on October 23, 2025, for the divestment
of its entire equity shareholding (50%) in AGPL. The transaction was
completed on October 31, 2025.

Subsequently, the Company filed an application with the Stock
Exchanges for the de-classification of AGPL from the 'Promoter and
Promoter Group' category, and the requisite approval was received
on April 27, 2026.

HUMAN RESOURCES

In line with the organisation's imprint of driving a high-performing
and vibrant company that works collaboratively with focus,
transparency, and humility to consistently deliver business results
on a sound foundation of ESG, leveraging human capital remains a
key business imperative, and the principle of always putting people
first continues to guide the Company's policies. Our employees
bring strength, dynamism, energy, and innovative ideas to work
every day. To achieve our goals, we prioritise the well-being and
development of our employees by providing them with a strong
sense of purpose and investing in their professional growth.

Parry's People Vision of "Enriching organisational capability through
a collaborative culture and by infusing digital solutions into people
processes to achieve superior business performance" is realised
through a series of structured policy deployment initiatives and
contemporary HR practices, focusing on three key HR imperatives:

Resilient Organisation, People Capability & Culture, and
Business HR & Employee Relations.

The Company reinforced its Performance Management System
(PMS 2.0), enabling transparent, fair, and data-driven Performance

Review Discussions (PRDs), supported by clearly defined KPIs,
multi-rater feedback, and structured appraisal processes. Focused
efforts on talent development were undertaken through structured
leadership journeys such as THRIVE, RISE, and MentorMinds, along
with leadership connect platforms like "Dosa with CEO," fostering
open communication, coaching-led development, and leadership
pipeline creation.

Structured platforms such as INVICTUS '25 and Parry's Pulse
Survey 2.0 enabled deeper engagement with employees and
leaders, providing valuable insights to strengthen organisational
effectiveness and drive targeted action across collaboration,
communication, talent management, and performance excellence.

In line with its commitment to nurturing future talent, the Company
onboarded Graduate Engineer Trainees (GETs) from premier
institutes and enabled their development through structured
induction, training, and cross-functional exposure. Additionally,
progressive people policies such as the Parenthood Advantage
Policy and focused Diversity, Equity and Inclusion (DEI) initiatives,
including the Inclusion Blueprint Survey, have further strengthened
the Company's commitment toward building an inclusive and
supportive workplace. These interventions, along with continuous
employee engagement initiatives, have positively impacted a
significant proportion of the workforce.

The Company remains committed to creating a positive and
empowering ecosystem that nurtures talent, promotes continuous
learning, and builds organisational capability. It firmly believes
that a motivated workforce, supported by a culture of innovation,
inclusiveness, and growth, will continue to drive sustained
performance and enable the organisation to thrive in a dynamic
business environment.

As on March 31, 2026 the total number of permanent employees
on the rolls of the Company stood at 2165.

Throughout the year, the Industrial Relations climate remained cordial,
and the Company continued to proactively address union-related
matters. During the year, the Company successfully concluded Long¬
Term Wage Settlements at the Bagalkot and Ramdurg units.

Prevention of Sexual Harassment at the Workplace:

The Company has in place a comprehensive policy in compliance
with the provisions of the Sexual Harassment of Women at
Workplace (Prevention, Prohibition and Redressal) Act, 2013. An
Internal Complaints Committee (ICC) has been constituted to
address and redress any complaints received under the said policy,
and the policy is applicable to all employees of the Company.

During the year under review, one complaint was received and duly
addressed and disposed of. No complaints remained pending as
at the end of the financial year, and no complaint was pending for
more than 90 days.

Maternity Benefit Act, 1961:

The Company is in compliance with the provisions of the Maternity
Benefit Act, 1961.

AWARDS & ACCOLADES

During the year, Nutraceuticals Division was awarded the Tamil Nadu
Government Safety Award for the year 2022-23, securing the second
prize in the category of 'Longest Accident-Free Days. The award was
presented on January 6, 2026, by the Hon'ble Minister of Labour,
Government of Tamil Nadu.

The Company was awarded 'Best Environmental Initiative' for its
360-degree circular water stewardship model, conferred by Bonsucro
at the Bonsucro Inspire Awards 2026.

During the year, the Company received the 'Gold' Award in the State
PRSI Awards 2025, for its 50^th Annual Report "Enduring Challenges.
Embracing Change."

During the year, the Company received Golden Peacock Eco¬
Innovation award 2025, for sustainability-driven innovation and
environmental excellence.

CHANGE IN NATURE OF BUSINESS:

There has been no change in the nature of the Company's business
during the financial year 2025-26.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

Pursuant to the provisions of Section 152 of the Companies Act,
2013, read with the Articles of Association of the Company, Mr. M.
M. Venkatachalam (DIN: 0152619), Director, retires by rotation at the
ensuing Annual General Meeting and, being eligible, offers himself
for reappointment. The requisite details in this regard are provided
in the Notice convening the Annual General Meeting and in the
Corporate Governance Report.

The Company has received declarations from all Independent
Directors confirming that they meet the criteria of independence as
prescribed under Section 149(6) of the Act and that they comply with
Regulations 16 and 25 of the Listing Regulations.

Mr. Muthiah Murugappan, Whole-Time Director and Chief Executive
Officer, Mr. Y. Venkateshwarlu, Chief Financial Officer, and Mr. Biswa
Mohan Rath, Company Secretary, are the Key Managerial Personnel of
the Company in accordance with the provisions of Section 203 of the
Act. During the financial year 2025-26, there were no appointments
or resignations of Directors or Key Managerial Personnel.

Number of Meetings of the Board

Seven meetings of the Board of Directors were held during the year,
the details of which are provided in the Corporate Governance Report.

Board evaluation

The performance of the Board Committees and individual Directors
was evaluated in accordance with the provisions of the Companies
Act, 2013 and the Listing Regulations. The manner in which the
evaluation was carried out, along with the process adopted, is
detailed in the Corporate Governance Report.

Expertise of Independent Directors

In terms of the requirements of the Listing Regulations, and Rule
8(5)(iiia) of the Companies (Accounts) Rules, 2014, the Board has
identified the core skills, expertise, and competencies required of
Directors in the context of the Company's business for its effective

functioning. The manner in which the current Board fulfills these
requirements is detailed in the Corporate Governance Report.

Policy on Directors' Appointment and Remuneration and
Other Details

The Board, on the recommendation of the Nomination and
Remuneration Committee (NRC), has formulated a policy for the
selection and appointment of Directors and Senior Management
personnel, and for determining their qualifications, positive
attributes, independence, and remuneration.

The Remuneration Policy and the criteria for Board nominations are
available on the Company's website athttps://eidparry.com/wp-
content/assets/2025/04/Remuneration-PolicyR1.pdf

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to Section 134(3) and 134(5) of the Act, your Directors, to
the best of their knowledge, belief and according to information
and explanations obtained from the management, confirm that:

•    In the preparation of the annual accounts for the financial
year ended March 31, 2026, the applicable accounting
standards have been followed and there are no material
departures therefrom;

•    they have selected such accounting policies and applied
them consistently and made judgments and estimates that
are reasonable and prudent so as to give a true and fair view
of the state of affairs of the Company as of March 31,2026, and
of the loss of the Company for the year ended on that date;

•    they have taken proper and sufficient care for the maintenance
of adequate accounting records in accordance with the
provisions of the Companies Act, 2013 for safeguarding the
assets of the Company and for preventing and detecting
fraud and other irregularities;

•    they have prepared the annual accounts on a going
concern basis;

•    they have laid down proper internal financial controls to be
followed by the Company and such controls are adequate
and operating effectively and;

•    they have devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems are
adequate and operating effectively.

AUDITORS AND AUDITORS' REPORT
Statutory Auditors

M/s. Price Waterhouse Chartered Accountants LLP (Firm Registration
No. 012754N/N500016), Chennai, were appointed as the Statutory
Auditors of the Company by the Members at the 47^th Annual
General Meeting held on August 9, 2022, to hold office until the
conclusion of the 52^nd Annual General Meeting.

The Statutory Auditors have issued an unmodified audit opinion
on the financial statements of the Company for the financial year
2025-26. There are no qualifications, reservations, adverse remarks,
or disclaimers in their report.

Cost Auditors

Pursuant to the provisions of Section 148 of the Companies Act,
2013, read with Rule 8 of the Companies (Accounts) Rules, 2014 and
the Companies (Cost Records and Audit) Rules, 2014, as amended
from time to time, cost audit is applicable to the Company's
businesses relating to sugar, distillery, and cogeneration of power.
The Company has duly maintained the requisite cost records
and accounts for these businesses, as prescribed by the Central
Government under Section 148(1) of the Act.

On the recommendation of the Audit Committee, the Board
of Directors has appointed M/s. Narasimha Murthy & Co., Cost
Accountants, as the Cost Auditors of the Company for the financial
year 2025-26 at a remuneration of H10,00,000 (Rupees Ten Lakhs only),
plus applicable taxes and reimbursement of out-of-pocket expenses.

A resolution seeking Members' ratification of the remuneration
payable to the Cost Auditors forms part of the Notice convening
the ensuing Annual General Meeting.

The Cost Audit Report for the financial year 2024-25 has been filed
with the Ministry of Corporate Affairs. The Cost Audit Report for the
financial year 2025-26 shall be filed within the prescribed timelines.

Secretarial Auditors

The Board of Directors has appointed M/s. Sridharan & Sridharan
Associates, Practising Company Secretaries, Chennai, as the
Secretarial Auditors of the Company to conduct the Secretarial
Audit for the financial year 2025-26.

The Secretarial Audit Report for the financial year 2025-26 is
annexed as Annexure B to this Report.

The Secretarial Auditors have not reported any qualifications,
reservations, adverse remarks, or disclaimers in their report.

For the Financial Year 2025-26, M/s. Parry Sugars Refinery India
Private Limited (PSRIPL) is a material subsidiary of the Company. As
per regulation 24A of the Listing Regulations, every listed company
and its material subsidiaries shall undertake secretarial audit by a
Secretarial Auditor and shall annex the Secretarial Audit Report, with
the Annual Report of the Listed entity. Accordingly, the Secretarial
Audit Report of PSRIPL for the financial year 2025-26 is annexed as
Annexure B1 to this Report.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

EID Parry's Corporate Social Responsibility (CSR) initiatives are
anchored in the belief that sustainable business success is
intrinsically linked to the well-being of the communities in which the
Company operates. During FY 2025-26, the Company continued
to strengthen its interventions across healthcare, education, rural
development, and sports, with a focus on underserved communities
surrounding its manufacturing locations.

Healthcare Access and Outreach

With the objective of improving healthcare accessibility in rural areas,
the Company continued its flagship initiatives Wellness on Wheels
and Rural Health Centres. These mobile and static healthcare units,
staffed by qualified doctors, paramedics, pharmacists, and social

workers, provide timely diagnosis, treatment, and free medicines to
village communities.

In addition, specialised eye care camps were conducted to raise
awareness, offer eye screenings, facilitate cataract surgeries, and
distribute corrective eyewear, thereby extending preventive and
curative healthcare services to remote populations.

Education and Skill Development

Education remains a key pillar of the Company's CSR efforts.
Evening study centres were operated across select villages,
providing academic support to students from Grades 1 to 10. These
centres focus on core subjects such as Science, Mathematics, and
English, while also encouraging creative development through
arts and crafts.

To strengthen rural educational infrastructure, the Company has
supported schools through the provision of computers, laboratory
equipment, smart boards, classroom renovations, and sanitation
facilities. Scholarships were also awarded to meritorious students
from economically disadvantaged backgrounds to enable their
continued education.

Rural Development and Hunger Alleviation

The Company's rural development initiatives focus on enhancing
essential infrastructure and improving quality of life. Drinking water
access was expanded through the installation of reverse osmosis
(RO) systems, restoration of water sources, and construction of
storage facilities. Additionally, food and essential supplies were
distributed to vulnerable households as part of the Company's
efforts towards hunger alleviation.

Sports for Development

Sports for Development is a flagship CSR initiative aimed at
identifying, nurturing, and supporting talented youth to compete
at state and national levels. Beyond sports training, the programme
incorporates life skills development, contributing to overall
personality development and social transformation.

Project NANNEER - Water Sustainability Initiative

Project NANNEER, a flagship water stewardship initiative of the
AMM Foundation and EID Parry, continues to deliver transformative
impact across rural Tamil Nadu and other regions. Implemented
in partnership with Siruthuli, a not-for-profit organisation based in
Coimbatore, the project focuses on rejuvenating traditional water
bodies and their feeder systems.

As of FY 2025-26 (Phase IV), over 18 water bodies have been
restored, creating a cumulative water storage potential of
approximately 1.83 billion litres. Key restoration activities include
desilting, bund strengthening, installation of percolation shafts,
sluice repairs, and clearing of feeder channels thereby enhancing
groundwater recharge and reducing water loss.

Notable achievements include:

• Muthaandi Kanmai (8 acres, Pudukkottai): Capacity
increased from 27 to 45 million litres, supporting over 50
acres of farmland.

•    Kuttapalayam Pond (15 acres, Tiruppur): Capacity enhanced
from 75 to 112 million litres, supporting irrigation for
approximately 1,200 acres.

•    Ammapatti Kanmai (9 acres, Sivagangai): Expanded from 22.6
to 45.7 million litres, benefiting over 75 acres.