Meghmani Organics Ltd

We aim to achieve 15%-20% revenue growth and uphold double-digit EBITDA margins in FY26 through the optimum capacity utilisation and product diversification.

Dear Shareholders,

I trust this letter finds you in good spirits. I am pleased to convey that during a year characterised by unprecedented global challenges, we have not only weathered the storm but have also emerged stronger and more resilient. Our journey over the past year has been transformative, characterised by remarkable growth, strategic diversification, and bold new ventures.

THE BROADER PICTURE

For an extended period leading up to FY25, the global chemical industry experienced a significant decline in demand attributable to inventory destocking. This phenomenon was ascribed to various factors across different nations, including considerable inventory levels maintained by industry players, excess manufacturing capacities installed by players and escalating interest rates.

Nevertheless, this was merely a temporary phase. Signs of recovery became evident from the first quarter of FY25, accompanied by encouraging volume growth in both the segments. By the second quarter, it was observed that inventory destocking had largely concluded for most products in the majority of markets, particularly in key regions such as the United States and Latin America.

STRONG FINANCIAL TURNAROUND

As a result of the combined factors and a rebound in global demand, we achieved a remarkable turnaround in FY25, with revenue increasing by 30% year-on-year to H2,003.9 crore. The Company reported a profit after tax (PAT) of H66.4 crore, a significant improvement from the loss of H56.6 crore in FY24. EBITDA surged to H180.4 crore, sharply up from H9.5 crore in the previous year, reflecting enhanced operational efficiency and improved product mix.

ROBUST OPERATIONAL PERFORMANCE ACROSS SEGMENTS

The Crop Protection segment, which constitutes 72% of total revenue, reported a production increase of 14%, reaching 41,892 metric tons (MT), alongside a revenue growth of 34% year-on-year, amounting to H1,450.6 crore. EBITDA for this segment escalated by 301% year-on-year, totalling H177.2 crore, driven by enhanced capacity utilisation at 76% and favourable product mix. The Pigments segment, representing 28% of total revenue, experienced an 11% increase in production, achieving 15,237 MT, alongside a revenue growth of 20% year-on-year, amounting to H553.3 crore. The segment turned its EBITDA positive at H26.9 crore, in contrast to a negative EBITDA of H6.6 crore in FY24. Titanium Dioxide (TiO2) reported a revenue of H34.0 crore in FY25. The Crop Nutrition segment attained self-sufficiency during FY25, signifying a critical milestone and reported a revenue of H40.5 crore in FY25.

FUTURE GROWTH STRATEGY

We have charted an ambitious growth path focused on enhancing our product mix, sweating our existing assets and leveraging our innovation capabilities to open up new growth avenues. Our plans include significantly scaling up operations at our Multi Purpose Product (MPP) plant, through optimum capacity utilisation and product diversification. This expansion will be complemented by efforts to optimise existing assets in our Crop Protection and Pigments segments.

Our product development roadmap includes launching 2-3 new products in the Crop Nutrition segment during FY26, building on the segment?s recently achieved self-sufficiency. Simultaneously, we are actively pursuing international expansion, with field trials underway in 35-40 countries to validate the efficacy of nano urea liquid fertiliser in global markets.

Our Titanium Dioxide (TiO2) business has been encountering challenges due to aggressive Chinese dumping of TiO2 in India, resulting in suboptimal capacity utilisation. However, due to implementation of anti-dumping duty by Government of India on Chinese TiO2 imports, effective May 2025, it is projected to enhance realisations for domestic players. A recovery is anticipated commencing in the third quarter of FY26, contingent upon the clearance of excess channel inventory. Additionally, we are actively exploring export opportunities to strengthen our competitive position, improve our capacity utilisation, and unlock new growth avenues for the business.

FINANCIAL PRUDENCE AND DEBT REDUCTION PLAN

We maintained a disciplined financial approach, with our consolidated long-term debt at H443 crore as of March 2025. Plans are in place to reduce debt by H160 crore in FY26, with no major capital expenditures planned, focusing instead on deleveraging and improving balance sheet strength.

RENEWABLE ENERGY INITIATIVE

Sustainability forms a core pillar in our future strategy. We are accelerating our transition to renewable energy by implementing upto 4.5 MW wind-solar hybrid project, which will help achieve the target of sourcing over 50% of energy needs from clean sources. This initiative will be supported by broader ESG measures across manufacturing facilities to reduce environmental impact while improving operational efficiency.

MARKET OUTLOOK AND FY26 GUIDANCE

Supported by changes in the global macroeconomic environment, India?s growth story is expected to remain robust beyond FY25. MOL is strategically positioned to seize upcoming opportunities in both domestic and international markets, owing to the increasing awareness of food security in India and worldwide. In Crop Protection market, demand is expected to continue the growth momentum with pricing anticipated to recover gradually, which market

is promising for our growth. TiO2

is anticipated to stabilise following the anti-dumping duty. To further strengthen our market position in Crop Nutrition we will be expanding our product portfolio by adding 2 to 3 new products. For FY26, we forecast revenue growth of 15%–20% and aim to uphold double-digit EBITDA margins.

CONCLUDING NOTE

In the past, we were tested with hardships, impacting our performance, yet we staged a comeback driven by our perseverance, determination and never-say-die attitude. Our focus on backward integration and state-of-the-art facilities bolstered resilience. With Responsible Care accreditation, we also uphold safety and sustainability, paving the way for a thriving future.

Finally, I sincerely thank all our stakeholders for their ongoing support and trust in Meghmani Organics Limited. Your confidence in our vision has driven us to new heights. Together, we?ll face challenges, embrace opportunities, and keep creating sustainable value. Thank you for your continued support and investment. In the way of achieving our goal, your trust fuels our journey.

Best regards,