Sundrop Brands Limited (formerly known as Agro Tech Foods Limited) has filed its Business Responsibility and Sustainability Report (BRSR) for the financial year 2025-26 with BSE Limited and the National Stock Exchange of India Limited. The submission was made pursuant to Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The report, signed by Company Secretary and Compliance Officer Kavita on July 31, 2026, covers the company's standalone operations and is accessible through the Annual Report on the company's website.

Company Overview and Financial Profile

Incorporated in 1986, Sundrop Brands Limited is engaged in the foods business, encompassing manufacturing and sales of processed foods — including Ready to Cook Snacks, Ready to Eat Snacks, Spreads & Dips, Breakfast Cereals, and Chocolates Confectionery — as well as Edible Oils. The company's paid-up capital stands at INR 37,69,68,530. Key financial and operational parameters for FY 2025-26 are summarised below:

The company's product mix accounting for 90% of turnover comprises Other Processed Food products (NIC Code 10799) at 60% and Edible Oils/Staples (NIC Code 10402) at 40%. Sundrop Brands operates 6 national plants and 4 national offices, along with 1 international plant and 1 international office. Its distribution network covers approximately 1,170 distributors serving around 4,93,000 retailers, in addition to modern trade, e-commerce platforms, and canteen stores departments.

Workforce and Employee Well-Being

As at the end of FY 2025-26, the company's total workforce comprised 842 employees and 956 workers. The Board of Directors has 11 members, of whom 1 (9.09%) is female, while Key Managerial Personnel total 4, of whom 1 (25.00%) is female.

All permanent employees (423) received 100% health insurance and accident insurance coverage. Wellbeing expenditure for FY 2025-26 stood at INR 2.64 Crore, representing 0.30% of total revenue, compared to INR 2.82 Crore (0.36%) in FY 2024-25. The overall employee turnover rate for permanent employees was 40% in FY 2025-26, up from 21.03% in FY 2024-25, while permanent worker turnover was 18% versus 6.94% in the prior year.

Median remuneration disclosures for FY 2025-26 are as follows:

Gross wages paid to females in FY 2025-26 amounted to INR 35,13,856, representing 7.23% of total wages of INR 4,86,20,496, compared to 6.27% in FY 2024-25.

Health, Safety, and Human Rights

The company reported a zero Lost Time Injury Frequency Rate (LTIFR) for both employees and workers in FY 2025-26, with zero total recordable work-related injuries and zero fatalities. In FY 2024-25, workers had recorded an LTIFR of 0.2341 and 8 total recordable injuries. Health and safety practices and working conditions were assessed at 100% of plants and offices during the reporting year.

All plants and offices were assessed at 100% coverage for child labour, sexual harassment, workplace discrimination, forced/involuntary labour, and wages. Zero complaints were filed under any of these categories in FY 2025-26 or FY 2024-25. The company also reported nil complaints under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 for both years.

Human rights training coverage in FY 2025-26 reached 85.40% of total employees (719 out of 842) and 37.03% of total workers (354 out of 956). All permanent employees and workers are paid above the statutory minimum wage.

Environmental Performance

The company captures environmental data through a structured, plant-level digital dashboard covering Scope 1 and Scope 2 emissions, energy, water, air quality, and waste. Key environmental metrics for FY 2025-26 are presented below:

Energy Consumption

GHG Emissions

Scope 3 emissions have not been assessed for either reporting year. The company has undertaken energy efficiency initiatives including energy-efficient lighting, high-efficiency motors, variable frequency drives, and rooftop solar installations.

Water Management

One manufacturing unit at Chittoor has implemented a Zero Liquid Discharge mechanism, with treated wastewater utilised for landscaping. The company does not have operations in ecologically sensitive areas and reported full compliance with applicable environmental laws in FY 2025-26.

Waste Management

The company achieved 100% EPR compliance for post-consumer plastic waste as per CPCB guidelines. EPR recycling targets for FY 2025-26 were Category 1: 491 MT, Category 2: 537 MT, and Category 3: 10 MT.

Governance, Stakeholder Engagement, and Consumer Responsibility

All nine NGRBC principles are covered by Board-approved policies, translated into procedures and extended to value chain partners. The company conducts internal audits on a quarterly basis across all principles; no independent external assurance has been obtained. No monetary or non-monetary penalties, fines, or disciplinary actions were recorded against directors, KMPs, employees, or workers for bribery or corruption in FY 2025-26 or FY 2024-25. Shareholder complaints received during FY 2025-26 totalled 459, all resolved with zero pending at year-end, compared to 389 filed in FY 2024-25.

The company's CSR Committee oversees sustainability-related decision-making. Sundrop Brands is affiliated with three national trade bodies: the Federation of Indian Chamber of Commerce and Industry, the Confederation of Indian Industry, and the Indian Beauty & Hygiene Association. On the consumer front, zero complaints were recorded across all categories — including data privacy, advertising, cyber-security, and unfair trade practices — in FY 2025-26, with no product recalls (voluntary or forced) during the year. The company reported no data breaches involving personally identifiable information for the year ended March 31, 2026.

Sundrop Brands sources 25.00% of inputs directly from MSMEs/small producers in FY 2025-26 (24.00% in FY 2024-25) and 40.00% from within the district and neighbouring districts (41.60% in FY 2024-25). The company's capex investment in technologies to improve environmental and social impacts stood at 16.53% of total capex in FY 2025-26, compared to 36.05% in FY 2024-25. The company noted that manufacturing facilities at Krishnapatnam, Telangana and Alwar, Rajasthan, which came into operation mid-year, will be included in BRSR disclosures from the next financial year.

Sundrop Brands Limited (formerly known as Agro Tech Foods Limited) has filed its Annual Report for the financial year 2025-26 with the stock exchanges and convened its 39th Annual General Meeting (AGM) scheduled for Wednesday, August 26, 2026, at 11:00 AM (IST) through Video Conferencing/Other Audio-Visual Means. The company reported a significant turnaround on a standalone basis, posting a net profit of ₹20.88 crores in FY 2025-26 against a net loss of ₹110.72 crores in FY 2024-25, aided by improved operational performance and the absence of exceptional impairment charges that had weighed on the prior year.

Financial Performance Overview

The following tables summarise the company's standalone and consolidated financial performance for FY 2025-26 versus FY 2024-25.

Standalone Statement of Profit and Loss

Consolidated Statement of Profit and Loss

The consolidated financial results include the results of the company and its wholly-owned subsidiaries: Sundrop Foods India Private Limited, Agro Tech Foods (Bangladesh) Pvt. Ltd., Sundrop Foods Lanka (Private) Limited, Del Monte Foods Private Limited, and Del Monte Foods India (North) Private Limited. The company acquired 100% equity shares of Del Monte Foods Private Limited (DMFPL) on February 6, 2025. DMFPL contributed a consolidated revenue of INR 667.14 crores for the financial year ended March 31, 2026, compared to INR 104.44 crores for the two months (February and March 2025) in the prior year, making the consolidated figures not directly comparable.

Key Financial Ratios and Return on Net Worth

The company's key financial ratios for FY 2025-26 versus FY 2024-25 are presented below.

Over a six-year period, the company delivered a foods revenue CAGR of 8.6%. During FY 2025-26, this trajectory accelerated, with revenue growth of 11%. Gross Margin for FY 2025-26 increased by INR 54 crores over the previous year, driven entirely by the Foods business.

Business Performance by Category

The Foods portfolio accounted for 60% of the company's revenue and 70% of Gross Margin during FY 2025-26. Key category highlights include:

• Ready to Cook (RTC) Snacks: Value growth of 9% versus the previous financial year; e-commerce channel grew at 52%.
• Ready to Eat (RTE) Snacks: Volumes increased by 21% and value by 35%; Gross Margins expanded by 4 times compared to the previous year.
• Spreads & Dips: Volume decline of 10% and value decline of 7% during the year amid heightened competitive intensity.
• Breakfast Cereals: Modest volume growth of 1% and value growth of 8%; Gross Margins expanded by over 5.5 times during the year.
• Chocolates: Volume decline of 70% and value decline of 67% following a decision to cease further investments in this category.
• Premium Staples (Edible Oils): Volume growth of 2% and value growth of 16% on a full-year basis; Gross Margins for the category declined by 9% compared to the previous year.
• Mass Edible Oils/Staples: Volume decline of 21% and revenue decline of 6% in line with strategic intent to moderate exposure.

Advertising and Promotion (A&P) expenditure increased by 25% during the year. The company's direct retail coverage stood at 493,000 outlets across India, with approximately 3,75,000 outlets being tracked on a mobile app.

Dividend and Capital Allocation

The Board of Directors has not recommended any dividend for the financial year ended March 31, 2026. The company stated it is strengthening its cash position to capitalise on identified high-potential opportunities across both organic and inorganic avenues, including investments in capacity expansion, brand development, product innovation, and selective strategic acquisitions.

AGM and Corporate Actions

The 39th AGM agenda includes adoption of audited standalone and consolidated financial statements for FY 2025-26, re-appointment of Mr. Ramit Bharti Mittal (Non-Executive Director) and Mr. Nitish Bajaj (Group Managing Director) who retire by rotation, and ratification of remuneration of INR 2,00,000/- (Indian Rupees Two Lakhs only) payable to M/s. Vajralingam & Co. (FRN 101059) as Cost Auditors for FY 2026-27. The cut-off date for determining eligible voters is August 19, 2026, and the Register of Members and Share Transfer Books will remain closed from August 20, 2026 to August 26, 2026 (both days inclusive). Remote e-voting will commence at 9:00 AM on August 22, 2026 and end at 5:00 PM on August 25, 2026.

Promoter Shareholding and ESOP

During FY 2025-26, promoter CAG-Tech (Mauritius) Limited acquired an additional 18,81,073 equity shares through an off-market transaction on December 23, 2025, increasing its shareholding from 1,27,85,363 equity shares (33.92%) to 1,46,66,522 equity shares (38.91%) as at March 31, 2026. As of March 31, 2026, the total outstanding options under the ESOP Scheme 2024 were 14,47,911 options. The company's CSR obligation of INR 24,12,000/- for FY 2025-26 was transferred to the Prime Minister's National Relief Fund in March 2026.