3M India Ltd Management Discussions

Cautionary Statement:

Members and Investors are cautioned that the discussion in this section of the Annual Report may contain statements that involve risks and uncertainties. Forward- looking statements mentioned may involve risks and uncertainties that could cause results to differ materially from those projected. Consequently, actual results, performance or achievements could thus differ materially from those projected in any such forward looking statements. The Company cannot guarantee that these assumptions and expectations are accurate or will be realised. The Company assumes no obligations, assumptions and expectations of future events and trends that are subject to risks and uncertainties. Actual future results and trends may differ materially from historical results or those reflected in any such forward- looking statements depending on a variety of factors.

THE COMPANY

The Company is the flagship listed Company of 3M Company, USA in India. 3M Company, USA is a diversified technology and science company with a global presence in the following businesses: Safety and Industrial; Transportation & Electronics; and Consumer and is among the leading manufacturers of products for many of the markets it serves. Most of its products involve expertise in technology, product development, manufacturing and marketing and are subject to competition from products manufactured and sold by other technologically oriented companies.

The Company has manufacturing facilities in India at Ahmedabad, Bengaluru and Pune. Its Corporate Office and Customer Innovation Center (R&D Center) are located at Bengaluru. As on March 31, 2026, the Company had an employee strength of 1,273 personnel. As on December 31, 2025, the Company was ranked 243 (PY as on December 31, 2024: 222) based on Market Capitalisation @ 35,78,220 lakhs (PY as on December 31, 2024: 39,34,290 lakhs) and is among the top 500 Companies based on Market Capitalisation (Source: NSE). The Company manages its operations in four (4) operating business segments: Safety and Industrial; Transportation & Electronics; Consumer and Health Care. The Companys four business segments bring together common or related 3M technologies, enhancing the development of innovative products and services and providing for efficient sharing of business resources.

3M products are sold through numerous distribution channels, including directly to users and through numerous e- commerce and traditional wholesalers, retailers, jobbers, distributors and dealers in a wide variety of trades. Management believes that the confidence of wholesalers, retailers, jobbers, distributors and dealers of 3M and its products - a confidence developed through long association with skilled marketing and sales representatives - has contributed significantly to 3Ms position in the marketplace and to its growth.

The Company is committed to creating long- term value to shareholders. Accordingly, the Company is dedicated to achieving high levels of operating performance, cost competitiveness, enhancing the productive asset and resource base and striving for excellence in all areas of operation. The Company firmly believes that its success in the marketplace and good reputation are important determinants of shareholder value. Its close relationship with customers and a deep understanding of their needs drive the development of new products and services. Anticipating customer requirements early and being able to address them effectively requires a strong commercial backbone. The Company continues to develop this strength by institutionalising sound commercial processes and building world- class commercial capabilities across its marketing and sales teams. The Company uses different innovative approaches in the development of its products and services, as well as execution of growth opportunities. The Company is also committed to creating value for all its stakeholders by ensuring that its corporate actions positively impact all the dimensions of sustainable development viz., economic, social and environment.

GLOBAL ECONOMIC OVERVIEW

The global economy is expected to maintain a steady, albeit moderate, growth trajectory over the medium term, supported by infrastructure investments, technological advancements and calibrated policy support across major economies. According to the International Monetary Funds April 2026 World Economic Outlook, global GDP growth is projected at 3.1% in 2026, with a marginal improvement to 3.2% in 2027, reflecting stable yet below- historical- trend expansion amid an evolving macroeconomic environment.

The global growth landscape, however, is becoming increasingly uneven. Advanced economies are witnessing a gradual moderation in economic activity as the prolonged effects of tighter monetary policies continue to impact consumption, investments and industrial output. In contrast, emerging and developing economies are expected to remain the primary contributors to incremental global growth, supported by resilient domestic demand, sustained infrastructure spending, expanding manufacturing activity and improving economic fundamentals, despite intermittent volatility arising from capital flows and currency fluctuations. Simultaneously, increasing geoeconomic fragmentation is reshaping global trade and investment patterns, prompting businesses worldwide to realign supply chains with a sharper focus on resilience, diversification and operational continuity alongside cost optimisation.

Geopolitical tensions, particularly across energy- sensitive regions, have further heightened commodity market volatility, resulting in periodic supply disruptions and elevated input costs. Global inflation is projected to rise to 4.4% 4.4% in 2026 before moderating to 3.7% 3.7% in 2027, reflecting short- term supply- side pressures followed by gradual stabilisation. Consequently, monetary conditions are expected to remain relatively tight, with interest rates staying elevated across major economies, thereby impacting liquidity conditions and increasing the overall cost of capital. These factors continue to create a complex and dynamic operating environment for businesses globally.

Despite near- term uncertainties, the structural drivers of global growth remain firmly intact. Continued investments in infrastructure, digitalisation, automation, advanced manufacturing and energy transition are expected to support productivity gains and shape the next phase of global economic expansion. Emerging economies, particularly across Asia, are likely to retain a pivotal role in driving global growth, supported by rapid urbanisation, rising consumer demand, expanding industrial capabilities and increasing integration into global value chains. Looking ahead, the global economy is expected to witness moderate but stable growth, underpinned by policy support and technological progress, while businesses increasingly prioritise resilience, operational agility, efficiency and long- term partnerships to navigate an evolving and uncertain global landscape.

INDIA ECONOMIC OVERVIEW

Indias economy continued to demonstrate remarkable resilience during the year, supported by healthy domestic demand, sustained government- led investments and improving industrial activity. The country retained its position as one of the worlds fastest- growing major economies, with real GDP estimated to grow by 7.6% 7.6% in FY 25- 26, reflecting continued strength in both consumption- driven and investment- led expansion.

Indias growth momentum remained anchored in a well- balanced demand structure, with Private Final Consumption Expenditure (PFCE) contributing over 60% 60% of GDP and continuing to serve as the principal engine of economic growth. Rising disposable incomes, rapid urbanisation, improving access to credit and accelerating digital adoption have further strengthened domestic consumption patterns, enabling broad- based growth across sectors. At the same time, macroeconomic stability remained largely intact, with inflation broadly contained within the Reserve Bank of Indias target range, supported by relatively stable commodity prices and calibrated policy interventions that helped sustain economic momentum amid global uncertainties.

The external sector also demonstrated resilience despite ongoing volatility in global trade and geopolitical developments. Exports remained steady across diversified sectors, while imports continued to reflect strong domestic demand for capital goods, intermediate products and energy resources, signalling sustained industrial and manufacturing expansion. Investments remained a key growth driver, supported by continued public capital expenditure and a gradual revival in private sector investments, leading to capacity creation across infrastructure, manufacturing, logistics and allied sectors. Industrial activity remained robust, aided by policy initiatives such as the Production Linked Incentive (PLI) Scheme, rising capacity utilisation, increasing formalisation of the economy and improving supply- side efficiencies.

Looking ahead, Indias economic outlook remains constructive and well- supported by resilient consumption trends, continued infrastructure investments and strengthening industrial momentum. Ongoing policy reforms, investments in logistics and digital infrastructure and global supply chain diversification trends are expected to further accelerate investments and deepen Indias integration into global value chains. While external risks such as geopolitical uncertainties, commodity price volatility and global trade disruptions may continue to pose intermittent challenges, Indias strong macroeconomic fundamentals and prudent policymaking are expected to provide a solid foundation for sustained, inclusive and long- term economic growth.

FINANCIAL RESULTS OF THE OPERATIONS OF THE COMPANY

The Companys revenue from operations increased by 14.49% 14.49% at 5,089.76 5 , 089.76 crores for the financial year ended March 31, 2026 compared to 4,445.56 4 , 445.56 crores in the previous financial year. The Profit Before Interest and Depreciation and Exceptional Item is 1,034.50 1 , 034.50 crores compared to 839.87 839.87 crores for the previous financial year. Profit Before Tax and Exceptional Item is 928.36 928.36 crores compared to 773.41 773.41 crores for the previous financial year. Profit Before Tax is 894.03 894.03 crores compared to 773.41 773.41 crores for the previous financial year. The operating margin for the current year is 20.13% 20.13% compared to 18.60% 18.60% for the previous financial year. Total Comprehensive Income is 522.07 522.07 crores compared to 471.25 471.25 crores for the previous financial year. Export Sales is 50.37 50.37 crores for the financial year ended March 31, 2026 compared to 23.79 23.79 crores in the previous financial year, an increase of 111.73% 111.73% due to higher demand in the global market.

Other Income:

The other income is 48.74 48.74 crores for FY 25- 26 compared to 70.26 70.26 crores for the previous FY 24- 25.

Cost of Goods sold:

The % of cost of raw material consumed as against sales for FY 25- 26 is lower by 1.58% 1.58% at 57.09% 57.09% as against 58.67% 58.67% for the previous FY 24- 25, due to product mix.

Employee Benefits Expense:

Employee cost as a % of sales for FY 25- 26 stood at 9.37% 9.37% (previous financial year was 9.69% 9.69% at 481.72 481.72 crores (previous financial year: 437.79 437.79 crores). Sales per employee has increased by 8.43% 8.43% to 4.04 4.04 crores (number of employees 1,273) in the current FY 25- 26 from 3.72 3.72 crores (number of employees 1,213) for the previous FY 24- 25.

Finance Cost:

The interest cost for FY 25-26 is Rs. 43.50 crores compared to Rs. 11.17 crores in the previous FY 24-25. The interest cost is on account of lease rentals of vehicles, office and real estate and interest on tax matters.

Interest earned:

The Company earned Rs. 45.75 crores on the surplus during FY 25-26 when compared to Rs. 61.87 crores during FY 24-25 by keeping the funds in deposits with the Banks.

Earnings per Share (EPS):

The EPS (Basic and Diluted) of the Company for FY 25-26 was Rs. 463.66 per Share as compared to Rs. 422.60 per Share in the previous FY 24-25, an increase of 9.72%.

Share Capital:

The Authorised Capital as on March 31, 2026 is Rs. 117,650,700 (divided into 1,17,65,070 Equity Shares of Rs. 10 each). The Issued/Subscribed and Paid-up Capital as on March 31, 2026 is Rs. 112,650,700 (divided into 1,12,65,070 Equity Shares of Rs. 10 each). During the year under review, the Company has not issued Shares with differential voting rights nor granted Stock Options nor Sweat Equity.

Reserves & Surplus:

Rs. 522.07 crores is retained in profit and loss account for the year ended March 31, 2026. The Reserves & Surplus is Rs. 1,756.88 crores including the current financial year retained profit.

Shareholders Fund:

The total shareholders funds decreased to Rs. 1,768.15 crores as at March 31, 2026 from Rs. 1,846.50 crores as of the previous FY 24-25, representing a decrease of 4.24% mainly because of payment of dividend offset by profits for the year.

Depreciation:

The depreciation charge for the current financial year is higher at Rs. 62.64 crores when compared to Rs. 55.29 crores of previous FY 24-25.

Fixed Assets-Capital Expenditure:

The gross Fixed Assets as at March 31, 2026 was Rs. 696.11 crores as compared to Rs. 659.96 crores of previous FY 24-25. Capital Investments during FY 25-26 were at 58.33 crores (Net of capital work-in-progress and capital advances) (FY 24-25: Rs. 55.42 crores) an increase of 5.25% year on year.

Inventories:

Inventory as at March 31, 2026 amounted to Rs. 822.96 crores as compared to Rs. 648.24 crores of previous FY 24-25. The inventory ratio has decreased to 92 days as at March 31, 2026 from 81 days of previous FY 24-25.

Trade Receivables:

Trade Receivables as at March 31, 2026 amounted to Rs. 838.60 crores as against Rs. 790.27 crores of previous FY 24-25. The debtors turnover ratio is 59 days (previous financial year: 62 days).

Cash and Bank balances:

The total balance of cash and bank balances as at March 31, 2026 was Rs. 812.14 crores as compared to Rs. 932.78 crores as at March 31, 2025.

Key Financial Ratios:

During the year, the significant changes in the financial ratios of the Company, which are more than 25% as compared to the previous year are summarised below:

Particulars	March 31, 2026	March 31, 2025	% Change	Reasons for Variance
1 Debtors Turnover (Days)	59	62	-4.84%
2 Inventory Turnover (Days)	92	81	13.58%
3 Interest Coverage Ratio	22.34	70.21	-68.18%	Interest on tax matters
4 Current Ratio	2.18	2.34	-6.84%
5 Debt Equity Ratio	0.10	0.05	78.11%	Increase in lease liabilities
6 Operating Profit Margin (%)	20.13	18.60	8.23%
7 Net Profit Margin (%)	10.16	10.54	-3.61%
8 Return on Net Worth (%)	29.54	25.78	14.58%

Overall analysis of the Profit and Loss:

	Year Ended March 31, 2026		Year Ended March 31, 2025
Particulars	Rs. In Crores	%	Rs. In Crores	%
Revenue from operations	5,089.76	99.05%	4,445.56	98.44%
Other income, net	48.74	0.95%	70.26	1.56%
Total Revenue	5,138.50	100.00%	4,515.82	100.00%
Cost of Materials consumed	1,790.68	34.85%	1,708.07	37.82%
Purchases of stock-in-trade	1,224.41	23.83%	1,012.73	22.43%
Changes in inventories of finished goods, work-in-progress and stock-in-trade	(81.77)	-1.59%	(71.39)	-1.58%
Employee benefits expense	481.72	9.37%	437.79	9.69%
Other Expenses	688.96	13.41%	588.75	13.04%
Profit before Finance costs and Depreciation	1,034.50	20.13%	839.87	18.60%
Finance Costs	43.50	0.85%	11.17	0.25%
Depreciation and amortisation expense	62.64	1.22%	55.29	1.22%
Total Expenditure	4,210.14	81.93%	3,742.41	82.87%
Exceptional items	34.33	0.67%	0	0
Profit Before Tax	894.03	17.40%	773.41	17.13%
Tax	371.71	7.23%	297.34	6.58%
Profit for the year	522.32	10.16%	476.07	10.54%
Items that will not be reclassified subsequently to profit or loss	(0.25)	0.00%	(4.82)	-0.11%
Total comprehensive income for the year	522.07	10.16%	471.25	10.44%

1. The financial year ending March 31, 2025, reflects merged financials following the amalgamation of 3M Electro & Communication India Private Limited (a wholly owned subsidiary) with 3M India Limited.

SEGMENT-WISE PERFORMANCE:

The Safety and Industrial business increased by 16.00% 16.00% ; Transportation and Electronics business increased by 10.08% 10.08% ; Health Care business increased by 17.49% 17.49% ; and Consumer business increased by 15.57% 15.57% .

1. Safety and Industrial Business:

This business segment serves the core industrial, electrical, vehicle maintenance and safety markets and offers a range of solutions including personal safety products, industrial adhesives and tapes, abrasives, electrical products and products for the automotive aftermarket.

(Rs. In Crores)

		March 31, 2026	March 31, 2025
Financial Highlights	Segment Revenue	1,640.04	1,413.87
	Profit Before Interest & Tax	257.57	146.72
	Capital Employed	380.87	323.57

Highlights of Safety and Industrial Business	Abrasive System : The Company continued to strengthen its focus on delivering productivity enhancement solutions across key segments, including Automotive, Electronics and Metal Fabrication. Reinforcing its commitment to improving operational efficiency, the Company collaborated closely with end customers to customize engineered abrasive solutions tailored to meet specific requirements, particularly in automation and robotic applications.
	Electrical Products : The Company prioritized the timely execution of pipe coating projects while expanding its presence in cable accessories across conventional energy public utilities, as well as the solar and wind energy segments. The year also marked the Company\u2019s entry into the general-use electrical vinyl tapes category through the electrical trade channel, further broadening its product portfolio and market reach.
	Automotive Aftermarket : The Company expanded its geographic footprint, enabling a wider base of car owners to access 3M\u2019s innovative solutions. The launch of the 3M Graphene Coating received an encouraging response, reflecting strong customer acceptance. In addition, the Company continued to enhance customer engagement and service quality through its expanding network of 3M Car Care Studios.
	Industrial Adhesives & Tapes : The Company maintained its focus on developing new applications across a diverse range of industries, including Electronics, Automotive OEMs and Aerospace. During the year, it successfully scaled multiple global product launches in the Indian market, reinforcing its innovation-driven growth strategy.
	Personal Safety Division : The Company continued to ensure worker safety across key market segments like Heavy Machinery, Transportation & Pharma/Chemicals. The increasing regulations for worker safety at heights amplified the demand for 3M\u2019s expertise led solutions for Horizontal & Vertical Lifeline systems (Fall Protection).

2. Transportation and Electronics Business:

This business segment serves global transportation and electronic original equipment manufacturers (OEM) with products for automotive and aerospace, commercial solutions, advanced materials and solutions for transportation safety.

(Rs. in crores)

		March 31, 2026	March 31, 2025
Financial Highlights	Segment Revenue	1,845.54	1,676.55
	Profit Before Interest & Tax	347.79	300.92
	Capital Employed	522.61	448.12

Highlights of Transportation and Electronics Business	The Government of India continues to prioritise infrastructure investment with a 9% YoY increase in the capex allotment in this year\u2019s the union budget. This significant allocation is expected to create robust growth opportunities for 3M India\u2019s transportation safety and commercial branding portfolios.
	Passenger vehicle production grew 6-7% outpacing the industry average with premium vehicle sales rising 15% that helped drive strong demand across automotive, fleet and premium segments. Commercial vehicle production increased by 8% , driven by growth of infrastructure and logistics demand supporting growth across the automotive value chain.
	The past year saw a 10-15% increase in investment by GCCs, hospitality and retail sectors in commercial spaces- a large part of which was in Tier 2 cities, driving demand for cutting- edge branding and design solutions.
	Electronics manufacturing grew 12-20% in the year 1.5X-2X faster than in the previous year. However, localization initiatives face challenges such as supply chain bottlenecks and skill gaps, which are slowing the adoption of local sourcing.
	Semiconductor manufacturing investments demonstrated robust growth, driven by government incentives. Challenges such as high capital costs and talent shortages are delaying facility ramp-ups, creating medium -to long-term opportunities with near term execution hurdles.

3. Consumer Business:

This business segment serves consumers with home care, office supply and stationery, home improvement and consumer healthcare products.

(Rs. in crores)

		March 31, 2026	March 31, 2025
Financial Highlights	Segment Revenue	537.24	464.86
	Profit Before Interest & Tax	94.11	82.33
	Capital Employed	83.61	67.86
Highlights of Consumer Business	Launch of new products in categories of broom and home improvement product. Also launched international product range on E-comm.
	Increased penetration of scouring products with increase in distribution reach.
	Sales of all products grew Home Care, Stationery and Home Improvement. Further, witnessed growth in all 3 channels General trade, Modern trade and E-comm.

4. Healthcare Business:

This segment provides products and services such as medical and surgical supplies, oral care solutions (dental and orthodontic products). The segment also serves Industrial & Life sciences customers for their filtration needs.

Effective April 1, 2024, the Company is an exclusive Licensed Manufacturer and Reseller as well as an Independent Distributor, for most of Solventum Corporations healthcare products in India.

(Rs. in crores)

		March 31, 2026	March 31, 2025
Financial Highlights	Segment Revenue	1,016.58	865.22
	Profit Before Interest & Tax	209.82	174.67
	Capital Employed	168.01	162.13
Highlights of Healthcare Business	The hospital-facing business continued to grow, supported by an increase in elective surgeries as well as expanded coverage across key cities in India. The filtration product portfolio also grew driven by increased demand from Industrial and Life Sciences customers.
	The Company continued its role as a technical partner to professional bodies such as CAHO (Consortium of Accredited Healthcare Organizations), INS (Infusion Nurses Society), IDA (India Dental Association) and AORN (Association of Perioperative Registered Nurses), contributing to the advancement of medical practices in hospital settings and dental clinics. Greater adoption of and adherence to, guidelines and protocols established by these professional bodies supported improvement of clinical practices and benchmark against the global healthcare providers.
	Improved understanding of these guidelines and protocols among the clinical and sales teams enabled healthcare facilities and dental clinics to adopt best practices more effectively, thereby supporting increased adoption of appropriate healthcare solutions.

OPPORTUNITIES AND THREATS

3M Companys wide range of technologies, diversified product portfolio and strong global brand continue to support 3M India in strengthening its market position. Operating in a highly competitive market environment, the Company continues to face pressure on both growth and profitability. Its products require deep expertise product development, manufacturing and marketing, while competing with technologically advanced domestic and international players. Additionally, challenges such as rupee depreciation, geopolitical uncertainties and volatility in oil and commodity prices continue to require focused attention and proactive management.

RISKS AND CONCERNS

Provided below are cautionary statements outlining what the Company believes to be the most significant risk factors applicable to its business:

The Companys results are influenced by competitive market conditions and evolving customer preferences.

Foreign currency exchange rate fluctuations may impact the Companys ability to achieve projected growth in sales and earnings.

The Companys growth objectives are significantly dependent on the timing and market acceptance of new product offerings, including its ability to continuously strengthen its innovation pipeline and successfully commercialise new products.

The Companys future results may be affected by fluctuations in the cost and availability of purchased components, compounds, raw materials and energy sources, including oil, natural gas and their derivatives, arising from shortages, increased demand, supply disruptions, currency exchange risks, natural disasters, global pandemics and other external factors.

Security breaches and disruptions to the Companys information technology infrastructure could adversely affect operations, compromise sensitive information relating to the Company or its customers, suppliers and employees and expose the Company to liabilities that may impact its business and reputation.

The Companys strategy for growth, future revenues, earnings, cash flows, capital allocation and overall market position may be impacted by changing business and economic conditions.

The Companys future performance may also be affected by operational execution risks, including the possibility of achieving lower productivity improvements than anticipated.

Asset impairments may adversely affect the Companys financial performance and position.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

All key functions and divisions of the Company are independently responsible for monitoring risks associated with their respective areas of operations such as production, supply chain, marketing, finance, accounting, treasury, legal and other areas like health, safety and environment. The Company has identified various risks through an internal self-assessment compliance checklist and has laid out necessary procedures to mitigate the same.

The Company has in place adequate systems of internal control commensurate with its size and the nature of its operations. These have been designed to provide reasonable assurance with regard to recording and providing reliable financial and operational information, complying with applicable statutes, safeguarding assets from unauthorised use or losses, executing transactions with proper authorisation and ensuring compliance with corporate policies. The Company, through its own Corporate Internal Audit Department, carries out periodic audits to cover all the offices, factories and key areas of business segments based on the plan approved by the Audit Committee and bring out any deviation to internal control procedures. The Internal Auditor functionally reports to the Audit Committee and administratively to the Managing Director. The observations arising out of the audit are periodically reviewed and compliance is ensured. The summary of the Internal Audit observations and status of the implementation is submitted to the Audit Committee of the Board of Directors. The status of implementation of the recommendations is reviewed by the Committee on a regular basis and concerns, if any, are reported to the Board.

DEVELOPMENTS IN HUMAN RESOURCES/ INDUSTRIAL RELATIONS

At 3M India, our approach to Human Resources is anchored in a simple yet powerful belief: our people are central to our success. During FY 25 26, we continued to strengthen our people practices through initiatives that balance employee well-being, capability building and engagement with the evolving needs of our business.

Learning and Development:

The Company made significant progress in advancing leadership and capability development across the organisation. In partnership with our Global Learning team, the Company rolled out structured leadership development initiatives, including the New Leader Development Programme and Experienced Leader Development Programme, enabling leaders in India to strengthen their effectiveness and drive business outcomes. The Company further deepened adoption of 3M Learn, our global, digital learning platform, which empowers employees with personalised, self-paced learning pathways. This has reinforced a culture of continuous learning, enabling individuals to take ownership of their development in alignment with both career aspirations and organisational priorities.

Recognising the critical role of commercial excellence in our growth, we placed strong emphasis on Sales Capability Building. Foundational learning programmes were delivered to all sales employees, complemented by advanced capability-building for Sales Managers. These initiatives have played a key role in enhancing sales effectiveness and strengthening our market competitiveness.

Human Resource Business Partnering/Total Rewards/ Employee Engagement:

The Companys Human Resource team continued to partner closely with the business to create a workplace that fosters inclusion, engagement and high performance. Employee engagement remained a priority, with initiatives such as Family Day and Sports Day events organised through employee-led clubs, strengthening community and belonging. Importantly, we extended our focus to our manufacturing workforce, ensuring equitable development opportunities through targeted technical and soft skills training across all plants.

The Company sustained a strong focus on creating a positive employee experience from the point of entry into the organisation. Our structured onboarding journey, including the Feel@Home programme and immersive experiences at the 3M Innovation Centre and Bengaluru Plant, enables new employees to quickly integrate, experience our culture and contribute effectively.

During the year, the Company also supported a structured Return-to-Work (RTW) transition, encouraging employees to come back to the workplace to enhance collaboration and innovation. The Companys HR team worked closely with leaders and employees to ensure a smooth and inclusive transition through clear policies and active change management.

The Companys quarterly Connections Forums, led by the Managing Director, continued to serve as an important platform for transparent communication, bringing employees together across locations, strengthening alignment with business priorities and reinforcing a shared sense of purpose.

Employee Relations:

The Company continued to maintain harmonious and constructive industrial relations across all manufacturing locations. The Company focus remained on building a participative and empowered work environment. The expansion of self-managed teams across sites has strengthened ownership and accountability at the shop-floor level, while also fostering innovation and problem-solving. These efforts are reinforced through structured forums and recognition platforms that celebrate employee contributions.

The Company engaged plant-based employees through a range of initiatives, including kaizen events, safety and quality education programmes and employee-led committees that also involve family members reflecting our belief in engaging the extended employee ecosystem. Additional efforts included:

Increased participation of plant employees in CSR initiatives, strengthening community connect and purpose.

Outreach by the Womens Leadership Forum in Manufacturing to promote careers in STEM and manufacturing, supporting long-term talent pipelines.

Continued focus on employee-led clubs and activities that promote well-being, collaboration and a strong organisational culture.

On behalf of the Board of Directors

Aseem Joshi	Jayanand Kaginalkar
Managing Director	Whole-time Director
DIN: 07504624	DIN: 07904558
Place: Bengaluru
Date: May 22, 2026