Dalmia Bharat Ltd Management Discussions

Prelude

Dalmia Bharat Limited stands among India s foremost cement producers, playing a vital role in supporting the country s expanding infrastructure and housing landscape. The Company s strong market presence is complemented by an extensive footprint, supported by a robust and well-integrated supply chain that enables the seamless movement of raw materials and finished products.

The integration of operations and logistics enhances responsiveness to market requirements while maintaining dependable service standards across regions.

Its brand portfolio reflects a nuanced understanding of varied customer needs and regional preferences. Dalmia Bharat Cement, Dalmia Bharat DSP, Dalmia Bharat Supreme, Konark Cement and Weather365 are crafted to serve distinct segments while upholding a shared commitment to quality, durability and performance. These brands have earned strong market trust through consistent product excellence and responsive engagement.

Its focus on cost efficiency and operational excellence over the years has enhanced overall profitability and ensured resilience amidst market volatility. By increasing the share of blended cement, Dalmia Bharat optimises raw material utilisation and ensures energy efficiency. Adoption of multi-fuel kilns and alternative energy sources helps mitigate fuel cost fluctuations. Additionally, the optimised logistics network, with plants strategically located near raw material sources and key consumption centres, reduces transportation costs and strengthens overall efficiency.

Sustainability remains embedded in the Company s growth blueprint. Focused initiatives in water stewardship, energy optimisation and emissions reduction continue to shape operational priorities. With scale, strategic clarity and environmental responsibility at its core, Dalmia Bharat continues to strengthen the physical framework that underpins India s economic momentum and future development.

Navigating the Global Economy

The global economy demonstrated remarkable resilience in 2025, achieving a solid growth rate of 3.4% according to the International Monetary Fund s Outlook (April 2026). Despite navigating complex shifts in trade policies and tariff-related adjustments from the United States, the global marketplace remained steady, successfully avoiding large-scale escalations. This stability was fuelled by robust consumer confidence and an encouraging trend of easing inflation, which provided a reliable foundation for expansion. While investment and fiscal capacities are still finding their full momentum, the year proved that the global economy possesses a strong underlying vitality and the capacity to sustain growth even in a changing international landscape.

As we moved into CY 2026, regional instability in the West Asia have put pressure on the global energy supply chains. While the immediate logistical bottlenecks are showing signs of resolution, the legacy of these elevated input costs may influence inflationary trends and production expenses in the early part of the year.

Outlook

The global economic outlook remains stable but faces heightened downside risks linked to energy market disruptions and geopolitical tensions in the near term. According to the OECD, while global growth is expected to remain resilient, it is likely to be slower than the pre-conflict trajectory, accompanied by higher inflation.

In this environment, policy responses will be critical.

Central banks are expected to remain vigilant in anchoring inflation expectations, while governments will need to balance targeted and temporary support measures with the need to maintain fiscal discipline. Reducing trade barriers can support growth and ease inflationary pressures. Over the medium term, improving energy efficiency and accelerating the transition toward renewable energy sources will be essential to enhance economic resilience and reduce exposure to future supply shocks.

Amid these global uncertainties, India continues to remain in a relative sweet spot, supported by strong domestic

India s Growth Story

India s economic trajectory in FY 2025-26 reflects sustained growth, underpinned by strong domestic fundamentals and prudent policy management. According to the Second Advance Estimates released by the National Statistics Office (NSO) in February 2026, real GDP is projected to grow by 7.6%, highlighting the resilience of domestic demand and the structural strength of the economy.

This expansion is largely driven by domestic factors, especially strong private consumption and fixed investment, which continues to serve as the primary engine of growth. The manufacturing sector is witnessing improved capacity utilisation, supported by a conducive policy environment and the continued expansion of the Production-Linked Incentive (PLI) scheme across 14 sectors. With cumulative investments exceeding Rs. 1.7 lakh crore, the scheme is driving growth in industries such as electronics, pharmaceuticals, and automobiles, while strengthening domestic manufacturing capabilities and reducing import dependence.

The Index of Eight Core Industries (ICI), which tracks pivotal sectors including coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity, reached 169 in FY 2025-26 and recording a cumulative growth of 2.6% for the full financial year from April 2025 to March 2026.

The year-end performance was significantly boosted by high-growth sectors such as Steel and Cement, which

demand, resilient services and manufacturing activity, and sustained public infrastructure investment. The country s stable macroeconomic fundamentals and ongoing digital and structural reforms position it as one of the fastergrowing major economies, offering a degree of insulation from external volatility.

Against this backdrop, Dalmia Bharat continues to contribute to India s growth story while maintaining resilience through disciplined cost management, diversified sourcing strategies, long-term contracting mechanisms and prudent capital allocation, enabling operational stability and sustainable growth amid evolving global and market conditions.

helped offset a contraction in energy-linked segments during March 2026. Despite year-end headwinds, the sustained cumulative expansion suggests that foundational supply conditions remain supportive, playing a crucial role in easing structural bottlenecks and helping to anchor broader inflationary pressures across the economy.

The Goods and Services Tax (GST) collection has emerged as a cornerstone of India s fiscal stability, reflecting the nation s underlying economic momentum and improved tax compliance. As of March 31,2026, gross GST collections surged by 8.3% to reach a record Rs. 22.3 lakh crore, underscoring robust domestic consumption and industrial activity. These consistent

high-revenue milestones, despite the rationalisation of GST rates, provide the government with the necessary fiscal headroom to fund infrastructure projects and social welfare schemes, effectively shielding the Indian economy from global inflationary pressures.

Retail inflation, measured by the Consumer Price Index (CPI), stood at 3.4% in March 2026, primarily driven by a rise in the Food and Beverages segment, where food inflation reached 3.9% due to elevated prices for vegetables like tomatoes and cauliflower.

However, headline inflation has consistently remained well within the Reserve Bank of India s (RBI) 2-6% target range. By staying below the medium-term anchor of 4%, the current trajectory highlights a period of overall price stability. This containment is particularly notable given the global commodity volatility, suggesting that domestic supply-side management and stable transport costs have successfully balanced the localised price spikes in perishables and luxury goods.

Reflecting this macroeconomic backdrop, demand- side conditions remain supportive but not excessive, allowing inflation to stay contained. In this context, the RBI s Monetary Policy Committee kept the policy rate unchanged at 5.25% in its April 2026 meeting. This decision considers the transmission of cumulative rate cuts of 125 basis points in CY 2025, which have gradually reduced lending rates by about 105 basis points. While

contained inflation has led to expectations of further rate cuts, the MPC has maintained a neutral stance to support growth while anchoring inflation expectations. CPI for FY 2025-26 is projected at around 2.1 %, with the policy approach remaining data-driven to allow flexibility amid evolving domestic and global conditions.

FY 2026-27: Key Highlights of Budgetary Outlays

Infrastructure development remains a central pillar of India s growth strategy, supported by strong public investment and targeted policy initiatives. Public capital expenditure at a record Rs. 12.22 lakh crore, marking a 11% YoY increase and account for more than 3% of GDP, highlighting the government s continued focus on infrastructure-led growth.

Connectivity and Mobility

Indian Railways received its	Parallelly, the road sector saw a	To further enhance urban
highest-ever allocation of	robust push with Rs. 3.10 lakh	mobility, the government
Rs. 2.78 lakh crore, a historic	crore allocated to the Ministry of	earmarked Rs. 28,740 crore
move aimed at accelerating	Road Transport and Highways,	for Metro Rail and Mass Rapid
the development of seven new	including Rs. 1.87 lakh crore	Transit projects nationwide,
high-speed rail corridors and	specifically for the NHAI to	providing critical funding for
expanding the Vande Bharat	expedite the completion of	ongoing expansions in cities
and Namo Bharat fleets.	national expressways and	like Lucknow, Pune, and
	economic corridors.	Kolkata.
)	)

Urban infrastructure development remains a central pillar of India s growth strategy. The investment is being channelled through key programmes such as Bharatmala Pariyojana, Sagarmala, Smart Cities Mission, and UDAN, which are enhancing connectivity, improving logistics efficiency, and reducing transportation costs. The push for high-speed connectivity is further reinforced by the development of seven new high-speed rail corridors, along with a dedicated freight corridor linking Surat and Dankuni.

In parallel, the focus is expanding towards the development of City Economic Regions (CERs), with targeted investments aligned to specific growth drivers. Each CER is set to receive an allocation of Rs. 5,000 crore over the next five years. Additionally, infrastructure development in Tier 2 and Tier 3 cities, particularly those with populations exceeding 5 lakh, is being prioritised to support more balanced and decentralised urbanisation.

The affordable housing segment has received a significant boost through enhanced fiscal allocations and expanded targets. PMAY-Urban & PMAY-Urban 2.0 have been scaled up with a substantial outlay of Rs. 21,625 crore, a nearly threefold increase compared to the previous Rs. 7,500 crore. This expansion supports the goal of sanctioning 1 crore additional houses under PMAY-Urban

2.0 (between 2024-2029) to address the housing needs of the urban poor and middle class.

For rural development, PMAY-Gramin has been allocated Rs. 54,917 crore, with a strategic focus on constructing 2 crore additional rural houses over a period of five years (2024-2029). Furthermore, the SWAMIH (Special Window for Affordable and Mid-Income Housing) initiative is effectively transitioning into its next phase, SWAMIH 2.0, backed by a planned corpus of Rs. 15,000 crore. This phase builds on the successful milestone of delivering over 58,000 housing units as of December 2025, providing much-needed relief to homebuyers in stalled projects and further strengthening the residential real estate ecosystem.

V. J

To enhance private sector participation, the government has introduced an Infrastructure Risk Guarantee Fund, which will provide partial credit guarantees for long- gestation infrastructure projects. Furthermore, support to states has been strengthened through the expansion of the 50-year interest-free loan scheme, with the allocation increased to Rs. 1.85 lakh crore for FY 2026-27.

Outlook

India s growth outlook for FY 2026-27 remains strong, with real GDP projected to grow in the range of 6.8-7.2%, supported by stable macroeconomic fundamentals and continuous fixed investment. Policy support through fiscal, monetary, labour and trade measures is helping stabilise growth conditions. However, potential supply disruptions through the Strait of Hormuz could lead to elevated inflationary pressures in the near term.

Sustainability remains a key priority, with Rs. 20,000 crore allocated over five years for Carbon Capture, Utilisation, and Storage (CCUS) projects. In addition, the push for electric mobility continues, with the deployment of 4,000 electric buses targeted specifically for the Purvodaya (Eastern) states.

Strong macroeconomic fundamentals and improving fiscal deficit, with substantial foreign exchange reserves of over USD 690 billion as of March 31,2026, enhanced India s ability to withstand external shocks such as geopolitical tensions and global market volatility. While risks from capital outflows, trade tensions, and energy security concerns persist, policy support and resilient domestic demand position it well to sustain growth momentum over the medium term.

Building India: The Cement Story

The cement industry serves as a critical enabler of India s economic and infrastructure-led growth. As an essential input material, cement remains central to the execution of large-scale infrastructure projects, including highways, metro systems, bridges, and smart city developments, residential and commercial construction as well as core industrial sectors.

Continued government focus on infrastructure development, affordable housing, and urbanisation is expected to further bolster the cement demand.

India s per capita cement consumption is ~295 kg, compared to a global average of ~500 kg, indicating scope for tremendous growth ahead. The recent GST rate cut on cement from 28% to 18% is significant milestone for the cement industry which will improve cost structure across the value chain, enhance affordability and support demand from both infrastructure and housing segments over the medium to long term.

Key Trends Shaping the Cement Sector

Rising Urbanisation Supporting Housing Demand: Rapid urban expansion and the rise of nuclear families are driving a persistent need for residential space. Government-backed affordable housing schemes further catalyse this, ensuring steady, long-term cement volume growth.	Consistent Increase in Infrastructure Spending: Despite a high historical base, the Rs. 12.2 lakh crore infrastructure outlay in Budget 2026-27 maintains momentum. Massive investments in high-speed rail, expressways, and dedicated freight corridors remain primary demand drivers. V )	Consolidation of Supply: The industry is witnessing increasing consolidation of supply, with top players either acquiring smaller companies or adding capacities at a faster pace. This consolidation is expected to result in better pricing power, optimise logistics and create significant barriers to entry.

v y	v y	v y
Increasing Adoption of	Transition Towards Low-	Digitalisation and Process
Renewable Energy: Cement	Carbon Cement: Sustainability	Innovation: Integration of
companies are steadily moving	is a strategic priority, with	AI-driven automation and
towards solar, wind and waste	manufacturers accelerating	real-time digital monitoring
heat recovery systems (WHRS).	the use of Fly Ash, Slag, and	is revolutionising plant
This helps reducing reliance on	Limestone Calcined Clay	performance. These technologies
volatile power and fuel costs,	Cement (LC3). These alternative	enable predictive maintenance
lower operating expenses,	materials reduce the clinker-	and precise kiln control, ensuring
and improve overall cost	to-cement ratio, redefining	maximum cost optimisation and
efficiency, while also meeting sustainability targets.	industry competitiveness.	superior product quality.

Outlook

The outlook for India s cement industry remains firmly positive, supported by continued momentum in infrastructure development and housing expansion. As a key input for construction across residential, commercial, and industrial segments, cement demand remains closely linked to government-led capital expenditure and real

estate activity. With both these drivers strengthening, the sector is well positioned to deliver a healthy volume growth CAGR of 7-8% over the medium to long term.

Performance review

Financial performance

In FY 2025-26, Dalmia Bharat Limited recorded a robust growth in revenue, reaching Rs. 14,804 crore, a 5.9% increase compared to the previous year, driven by better cement prices along with increase in sales volume to

30.0 MnT. Our EBITDA margin significantly improved to

20.8% in FY 2025-26, up from 17.2% in FY 2024-25, reflecting the successful execution of our cost-leadership strategy. The Company achieved its highest-ever annual EBITDA of Rs. 3,083 crore in line with the price growth, better cost efficiencies and higher volumes. The Company

delivered its lowest cost per ton in the last five years, which demonstrates the unwavering commitment to be one of the lowest-cost producers. Consequently, EBITDA/Tonne surged to Rs. 1,027/Tonne in FY 2025-26, a sharp increase from Rs. 820/Tonne in FY 2024-25.

Operational performance

Operationally, we delivered a resilient performance in FY 2025-26, reaching a total sales volume of

30.0 MT, representing a 2% growth over the previous year. By optimising production efficiency and leveraging our integrated model, we further enhanced market responsiveness and customer satisfaction. In addition, our focus on high-quality sales, superior product mix and improving operational efficiencies allowed us to maintain volume momentum while significantly improving our profitability per tonne.

Outlook

FY 2026-27 represents a phase of strategic acceleration as we sharpen our focus on maximising return from the existing assets on the back of higher utilisations, product premiumisation and deepening cost leadership. We are aligning our priorities to build a more agile and competitive organisation, capable of navigating market shifts while sustaining long-term value creation.

Growth will be driven through a combination of ongoing capacity expansion and sharper go-to-market strategies. We are intensifying our efforts to strengthen distribution reach, improve channel effectiveness, and elevate customer experience, ensuring that our market presence translates into sustained volume traction and improved pricing position.

We will also continue to deepen our cost leadership in the years ahead driven by multiple initiatives, including the ramping up of renewable energy capacity and the continued optimisation of our logistics networks.

Capital Expenditure Plan

Our capital expenditure remains focused on timely capacity creation and operational excellence. We are advancing our organic expansion projects at Belgaum (Karnataka), Pune (Maharashtra), and Kadapa (Andhra Pradesh). These projects are on track to increase our total cement capacity to 12 MnT in the next 18 months, with civil works at Belgaum already completed while major orders are placed for Pune and Kadapa. These strategic locations will significantly enhance our market penetration across Southern and Western India. Further, we have recently executed a Business Transfer Agreement with Jaiprakash Associates Limited (which has been acquired by Adani Group under the Insolvency & Bankruptcy Code) and Adani Infra (India) Limited on May 21,2026, for acquisition of Cement Undertaking comprising plants located at Rewa (Madhya Pradesh), Churk, Chunar and Sadwa

(Uttar Pradesh) with 5.2 MnTPA cement capacity and 3.3 MnTPA clinker capacity at an Enterprise Value of Rs. 2,850 crore. The asset also entails 99 MW of thermal power capacity and railway siding at Rewa and Chunar, along with a common railway siding at Churk.

This acquisition will provide faster access to Central markets compared to a greenfield project and further offers expansion opportunity through debottlenecking as well as brownfield approach. Considering newer markets, relatively better prices and Dalmia s proven cost leadership, these assets would augment EBITDA delivery and enhance overall returns for the Company. Considering all the projects, our total capex outlay for the FY 2026-27 is targeted at approximately Rs. 3,500-3,700 crore.

Impact

Non-compliance with health and safety standards may result in workplace injuries and fatalities

Gaps in embedding a strong safety culture can increase operational risk

V

a Inconsistent adherence by contractors to engineering and construction safety practices poses additional hazards

a Fire incidents remain a critical risk to personnel safety and operational continuity

Mitigation Strategy

a Health, Safety, and

Environmental (HSE) practices are actively monitored by line managers, supported by implementation of the DuPont safety model across all units

a KAVACH - My Safety My App enables reporting of lead indicators and real-time compliance tracking

a Regular monthly reviews at both unit and group levels, including HSE apex meetings and safety boards, reinforce a strong safety culture

a Toolbox talks are conducted to enhance on-ground safety awareness and practices

a Strict enforcement of PPE usage across all workplaces

a Continuous monitoring by safety officers and committees, along with workshops and e-learning modules, to strengthen safety awareness

a Enhanced screening protocols implemented across operations

y

a Compatibility testing of hazardous liquids and Alternative Fuels and Raw Materials (AFR) conducted prior to usage

a Third-party inspections and testing of lifting tools, tackles, and pressure vessels carried out in line with statutory requirements

Diversifying Energy Portfolio

Advancing Decarbonisation in Cement

a We are rebalancing	a Decarbonisation remains	operations through
our energy mix to	fundamental to our	modal shifts from road to
reduce dependence on	sustainability strategy,	rail, adoption of electric
conventional sources	as we work towards our	vehicles, and optimisation of
and accelerate the	aspiration of becoming	transport networks
transition towards	carbon negative by 2040	a Pilot initiatives, including EV
cleaner alternatives	a As founding members	deployment across select
a A significant increase	of global initiatives	routes and mines, are helping
in renewable energy	such as LEADIT, and	us evaluate scalable
adoption, supported	through alignment with	low-carbon logistics solutions
by waste heat recovery	national missions like	a Strengthening value
and alternative	carbon capture and	chain sustainability by
fuel utilisation, is	utilisation (CCUS), we	assessing suppliers on ESG
strengthening both	are actively contributing	parameters and supporting
energy resilience	to India \u2019 s low-carbon	smaller partners through
and decarbonisation	infrastructure development	capability-building and
outcomes	a Reducing the carbon footprint of our logistics	digital enablement

a The use of alternative raw materials such as fly ash, slag, and other industrial by-products reduces reliance on virgin resources while lowering environmental impact

a Our co-processing capabilities position us as a net positive contributor in waste utilisation, supporting both sustainability goals and resource efficiency

Technology that Powers Progress

Digital enablement continues to drive meaningful business impact by improving efficiency, strengthening controls, and enabling scalable growth. Guided by a digital-first mindset, the Company is leveraging robust technology platforms and intelligent automation to build agile systems that respond effectively to evolving business needs.

In FY 2025-26, the focus remained on expanding automation across functions while laying the foundation for Al-led productivity and long-term resilience.

Across the value chain, digital initiatives are enhancing operational effectiveness and user experience. Sales digitisation efforts are simplifying frontline execution and improving channel engagement through dealer applications, digital nudges, and Al-assisted tools. In logistics, technology-driven interventions are enabling more efficient, faster, and cost-effective movement of goods through improved planning, automation, and better asset utilisation. Smart manufacturing applications are further strengthening safety, reliability, and productivity at plant operations.

The organisation is also advancing the adoption of Al and automation to support data-driven decision-making and improve workforce productivity. Al-powered tools, including the DIA suite of bots, are enabling faster access to information and more efficient workflows across functions. Alongside these initiatives, a strong emphasis on cybersecurity and data protection ensures secure operations and regulatory compliance, reinforcing a resilient and future-ready digital ecosystem.

Building a Strong Organisation Culture

Building a safe, inclusive, and empowering workplace remains fundamental to how the organisation operates.

The HR strategy is closely aligned with long-term growth and sustainability goals, with people positioned as a key driver of business success. This approach is anchored in strengthening talent pipelines, fostering a continuous learning culture, reinforcing merit-based performance and rewards, and advancing diversity, equity, and inclusion, supported by digital HR systems and people analytics.

The organisation maintains a strong governance framework to ensure a workplace free from harassment and grounded in fairness and accountability. Standardised policies, structured processes, and active collaboration between HR, legal, and compliance teams help uphold ethical standards across all locations. At the same time, a strong emphasis on safety, well-being, and employee engagement is embedded into the culture through leadership accountability, structured feedback mechanisms, and workplace initiatives across plants, corporate offices, and field operations.

Learning and capability-building remain central to workforce development. Through structured programmes under the Nalanda Learning and Leadership ecosystem, along with digital learning platforms and analytics-driven insights, employees are equipped to grow, adapt, and take on future roles. This integrated focus on development, engagement, and inclusion continues to strengthen a resilient, future-ready workforce that supports the Company s long-term ambitions.

As of March 31,2026, the Company had 5,864 employees on its payroll.

Prioritising Health and Safety Dalmia Bharat Limited places health and safety at the core of its operational philosophy, positioning it as a critical enabler of sustainable and responsible growth.

The Company is committed to achieving a zero-harm workplace through a structured, multi-year safety roadmap that integrates robust systems, defined protocols, and continuous improvement across all manufacturing units.

The Company s safety architecture is built on three strategic pillars: behavioural transformation, technology integration, and capability development. This approach is formalised through its flagship excellence initiative, Safety - Dalmia Way of Life, designed in partnership with Ernst & Young.

Technology-led interventions play a pivotal role in strengthening Dalmia Bharat s safety ecosystem. The Company has deployed KAVACH, a real-time digital platform for reporting and monitoring unsafe acts, conditions, and incidents, enabling data-driven decision making. Advanced solutions such as Al-based hazard identification and drone-enabled inspections enhance surveillance of high-risk and inaccessible areas. Field-level monitoring is further optimised through QR code systems and geo-fencing, while the adoption of a paperless weighbridge system improves safety and efficiency within logistics operations.

ln parallel, the Company is focussed on building a high-trust, safety-first culture by transitioning from enforcement-led practices to empowerment-driven engagement. Structured e-learning modules standardise training across the workforce, while daily Toolbox Talks reinforce awareness and vigilance at the operational level. The development of model areas targeting zero unsafe conditions further strengthens on-ground safety discipline.

From FY 2025-26 onwards, safety performance has been embedded as a key parameter in the variable pay structure of senior and mid-level management, reinforcing leadership accountability. The deployment of specialised personal protective equipment for high-risk activities further mitigates exposure to critical hazards.

The Company s health and safety practices are governed by a comprehensive Occupational Health and Safety Policy and supported by strong oversight mechanisms. lts efforts have been recognised through multiple industry accolades.

Through a combination of system-led governance, digital innovation, and cultural transformation, Dalmia Bharat continues to set benchmarks in safety excellence, reinforcing its commitment to incident-free workplace.

Internal Control and their Adequacy

DBL maintains a robust internal control framework meticulously aligned with the scale and complexity of its expanding operations. The Company has established a well-defined organisational structure and management processes to ensure that internal financial controls are not only adequate but operate with high functional efficiency. Comprehensive policies and procedures are strictly enforced to safeguard assets, maintain accurate

accounting records, and guarantee the reliability of financial reporting.

DBL s internal control environment is characterised by a proactive Control Advocacy approach. Beyond financial rigour, the Company engages specialised global agencies to ensure best-in-class standards across diverse operational pillars.

Financial Overview

Consolidated Results

Description	FY 2025-26	FY 2024-25	Change (%)
Revenue from operations	14,804	13,980	6%
Expenses
Cost of raw materials consumed	2,324	2,241	4%
Purchases of stock in trade	0	106	(100%)
Changes in inventories of finished goods, stock in trade and work-in-progress	14	(19)	(174%)
Power and fuel	2980	2903	3%
Total cost of goods sold	5,318	5,231	2%
Employee benefits expense	894	885	1%
Freight charges
- on finished goods	2,804	2,785	1%
- on internal clinker transfer	430	501	(14%)
Other expenses	2,275	2,171	5%
Total expenses	11,721	11,573	1%
Operating EBITDA	3,083	2,407	28%
Operating EBITDA Margin (%)	21%	17%
Other income	222	253	(12%)
Finance costs	480	399	20%
Depreciation and amortisation expense	1,349	1,331	1%
Protit before share of protit in joint venture and exceptional items	1,476	930	59%
Share of profit in joint venture accounted for using equity method (net)	0	0	0%
Exceptional items (net)	(26)	(113)	(77%)
Protit before tax from continuing operations	1,450	817	77%
Total tax expense	292	118	147%
Protit after tax from continuing operations	1158	699	66%
(Loss)/ protit from discontinued operations	(1)	0	(592%)
Protit after Tax (PAT)	1,157	699	(18%)
PAT %	8%	5%

During FY 2025-26, the Group recorded EBITDA of Rs. 3,083 crore (previous year Rs. 2,407 crore) registering an increase of 28% over FY 2024-25. This was primarily on account of increase in sale prices and cost efficiency.

Due to aforesaid reason and lower net exception expenses, net profit for the year increased from Rs. 699 crore in FY 2024-25 to Rs. 1,157 crore in FY 2025-26.

The basic and diluted earnings from continuing operations for the FY 2025-26 were at Rs. 60.80 per share (previous year: basic and diluted: Rs. 36.41 per share).

1. Revenue from operations

The Group s total revenue increased by 6% to Rs. 14,804 crore in FY 2025-26 from Rs. 13,980 crore in FY 2024-25.

Rs. crore

Particulars	FY 2025-26	FY 2024-25	Change(%)
Cement and its related products	14,448	13,549	7%
Power	7	8	(15%)
Management service charges	12	11	8%
Total sale of products and services	14,467	13,568	7%
Other operating revenue	337	412	(18%)
Total revenue from operations	14,804	13,980	6%

The cement sales volume of the Group was 30.02 MnT in FY 2025-26 registering a growth of 2.3% as compared to 29.4 MnT in FY 2024-25. The average selling prices (net of discount and taxes) increased by 3.5% in FY 2025-26 over FY 2024-25.

The Group continued to retain a strong presence in the Southern, Eastern and North Eastern markets.

Other operating revenue mainly includes subsidies on sale of finished goods and scrap sale. Other operating revenue decreased majorly due to lower subsidy accruals in FY 2025-26 as GST rate on cement reduced from 28% to 18% during the year.

2. Other income

Other income primarily comprises interest income, dividend income, gain on sale and fair valuation of financial instruments, and others.

Other income decreased by Rs. 31 crore to Rs. 222 crore, mainly due to: (a) a decrease of Rs. 12 crore in interest on NCDs, as the NCDs were redeemed during FY 2024-25; and (b) a decrease of Rs. 15 crore in interest on income tax refund received in FY 2025-26.

3. Cost of goods sold

Cost of goods sold accounted for 35.9% of revenue in FY 2025-26 as against 37.4% in FY 2024-25, due to better price realisation.

4. Employee benefit expenses

Employee cost increased by 1 % in FY 2025-26, mainly due to increments in annual salaries, in line with industry standards. This was partially offset by a decrease in average headcount and the retirement of senior management personnel.

Employee benefits expense accounted for 6.0% of revenue in FY 2025-26, compared to 6.3% in FY 2024-25.

5. Freight charges

Freight cost decreased from Rs. 1,120/T to Rs. 1,077/T of cement sold in FY 2025-26, a reduction of 3.8%, primarily on account of cost-efficiency measures undertaken by the Company during the year.

Freight charges on finished goods accounted for 19.0% of revenue in FY 2025-26, compared to 19.9% in FY 2024-25.

6. Finance cost

Finance cost increased by Rs. 81 crore to Rs. 480 crore, primarily on account of an increase in average borrowings from Rs. 5,100 crore to Rs. 6,600 crore for expansion projects.

7. Depreciation and amortisation expense

Depreciation and amortisation expense increased by Rs. 18 crore to Rs. 1,349 crore in FY 2025-26, mainly due to the impact of PPE and ROU additions of Rs. 169 crore during FY 2025-26 and FY 2024-25.

This was partially offset by a reduction of Rs. 151 crore in goodwill amortisation.

8. Exceptional items

Exceptional loss for the year ended March 31,2026, of Rs. 26 crore was recorded on account of: (a) the impact of the new labour code amounting to Rs. 42 crore. The Company has assessed the incremental impact of these changes towards gratuity and other employee benefits for FY 202526; and (b) this was partially offset by a reduction of Rs.

16 crore in provisions for Jaiprakash Associates Limited ( JAL ) balances, based on a reassessment of the position.

9. Tax expense

Tax expense for FY 2025-26, as a percentage of profit before share of profit in joint ventures and exceptional items, was higher than the previous year, mainly on account of higher profit during FY 2025-26.

During the year ended March 31,2026, the Group reassessed tax provisions made in earlier years based on its interpretation of the prevailing income tax laws and rules, and wrote back current tax provisions amounting to Rs. 54 crore. Further, it recognised an additional deferred tax asset of Rs. 21 crore on account of brought-forward losses/unabsorbed depreciation under the head Tax adjustments for earlier years .

2. Non-current investments

Investments accounted for using the equity method stood at Rs. 2 crore as at March 31,2026, and consisted of investment in a joint venture.

Other non-current investments stood at Rs. 771 crore as at March 31,2026. These mainly consisted of investments in equity shares of a listed entity/Renewable Energy ( RE ) project entities, optionally redeemable convertible debentures and compulsorily convertible preference shares.

The increase was mainly due to an investment of Rs. 68 crore in RE power and an MTM gain of Rs. 55 crore on listed equities. This was partially offset by the reclassification of compulsorily convertible preference shares amounting to Rs.

20 crore from non-current to current investments.

3. Current investments

Current investments of Rs. 5,105 crore as at March 31, 2026, mainly consist of investments in equity shares of listed entities/RE project entities, mutual funds and corporate bonds.

The increase in investments of Rs. 661 crore was predominantly due to: (a) an increase of Rs. 1,964 crore in units of debt schemes of various mutual funds (unquoted); and (b) a new investment of Rs. 9 crore in equity shares of RE project entities. This was partially offset by a decrease of Rs. 1,234 crore in equity shares, primarily on account of the sale of 3.7 crore shares of IEX during the year for Rs. 742 crore, and a change in the value of shares.

4. Inventories

Inventory as at March 31,2026, was Rs. 1,192 crore, compared to Rs. 1,386 crore as at March 31,2025.

The decrease was primarily due to a reduction of Rs. 257 crore in raw materials and fuel in transit. Inventory days stood at 33 days in FY 2025-26, compared to 35 days in FY 2024-25.

*

5. Trade receivables

Trade receivables as at March 31,2026, stood at

Rs. 864 crore, compared to Rs. 889 crore as at March 31,

2025, reflecting a decrease of Rs. 25 crore.

Current receivable days, before provision for rebates to customers, stood at 22 days in FY 2025-26, compared to 23 days in FY 2024-25.

6. Other financial assets

Total other financial assets, both non-current and current, stood at Rs. 1,140 crore as at March 31,2026. These primarily consisted of subsidy/incentive receivables of Rs. 840 crore, security deposits of Rs. 153 crore and other receivables.

The increase of Rs. 82 crore in other financial assets was mainly due to an increase of Rs. 97 crore in subsidy/ incentive receivables and an increase of Rs. 24 crore in other receivables and foreign currency forward contracts. This was partially offset by a decrease of Rs. 4 crore in security deposits and Rs. 36 crore in bank deposits.

7. Other non-current and current assets

Other assets, both non-current and current, stood at Rs. 1,701 crore as at March 31,2026. These mainly consisted of capital advances, deposits and balances with government departments and other authorities, prepayments and advances to suppliers.

The increase in other assets was predominantly on account of an increase of Rs. 297 crore in deposits and balances with government departments, primarily GST input tax credit for projects, and Rs. 14 crore in prepayments. This was partially offset by a decrease of Rs. 106 crore in capital advances and Rs. 7 crore in advances to suppliers during the year.

8. Assets or disposal group classified as held for sale

No major movement in this head.

9. Share capital

The paid-up share capital of the Company as at March 31, 2026, was Rs. 38 crore, comprising 18,75,65,953 equity shares of face value Rs. 2 each.

During the year, the Company further issued 792 shares to eligible employees under ESOP

10. Gross debt and net debt

Gross debt was higher by Rs. 1,473 crore and stood at Rs. 6,752 crore as at March 31,2026. This was due to the availment of long-term rupee term loans during the year to fund capital expenditure for ongoing capacity expansion projects, along with an increase in short-term loans for working capital.

Net debt was higher by Rs. 712 crore and stood at Rs. 1,428 crore as at March 31,2026, mainly due to an increase in working capital, coupled with a decline in the value of marketable securities.

11. Trade payables

The total balance as at March 31,2026, stood at Rs. 1,294 crore, reflecting a decrease by Rs. 245 crore, mainly due to lower payables for fuel in transit.

12. Other financial liabilities

Other financial liabilities, both current and non-current, increased by Rs. 954 crore to Rs. 2,666 crore as at March 31,2026.

The increase was mainly on account of a rise of Rs.

999 crore in liabilities for capital expenditure. This was partially offset by a decrease of Rs. 70 crore in security deposits received, rebates to customers and other employee liabilities.

13. Provisions

Total provisions, both non-current and current, stood at Rs. 457 crore as at March 31,2026, compared to Rs. 428 crore as at March 31,2025.

The increase was primarily due to a rise in employee defined benefit provisions, following a revision of estimates in line with the new labour code and based on the valuation by an independent actuary.

14. Other liabilities

Other liabilities primarily consist of liabilities towards dealer incentives, advances from customers and statutory dues.

Total other liabilities, current, decreased by Rs. 165 crore, mainly on account of a decrease in statutory dues and advances received from customers. This was partially offset by a increase in liabilities towards dealer incentives.

Consolidated Cash Flows

Particulars	FY 2025-26	FY 2024-25	Change
Net cash flow from operating activities	2,278	2,117	161
Net cash flow (used) in investing activities	(3,023)	(2,270)	(753)
Net cash flow from/ (used in) financing activities	808	(39)	847
Net increase/ (decrease) in cash and cash equivalents	63	(192)	255

Net cash flow from operating activities

During the year, net cash generated from operating activities was Rs. 2,278 crore, compared to Rs. 2,117 crore in the previous year. This was mainly due to an increase in profit, partially offset by an increase of Rs. 429 crore in working capital adjustments.

Income tax paid during the current year was Rs. 99 crore, net of refund, compared to Rs. 71 crore, net of refund, in the previous year. The increase in income tax paid was due to higher taxable profits, net of brought-forward losses, in subsidiaries.

Net cash flow used in investing activities

During the year under review, net cash outflow from investing activities amounted to Rs. 3,023 crore, compared to Rs. 2,270 crore in the previous year.

The outflow during the current year broadly comprised capital expenditure of Rs. 2,041 crore, net of sale

proceeds; new investments of Rs. 47 crore in RE power entities, net of gain on OCI; and purchase of investments and fixed deposits, net, of Rs. 1,002 crore. This was partially offset by receipt of interest and dividend income amounting to Rs. 67 crore.

Net cash flow from/(used in) financing activities

Net cash inflow from financing activities amounted to Rs. 808 crore during the current year.

The inflow during the current year broadly represented the availment of borrowings of Rs. 1,531 crore, net of repayments. This was partly offset by interest payments of Rs. 446 crore, lease liability payments aggregating to Rs.

108 crore, including interest and principal, and dividend payments of Rs. 169 crore.

Key Financial Ratios

Particulars	FY 2025-26	FY 2024-25	Change(%)
Debtors Turnover (in times)*	29.33	31.60	(7%)
Inventory Turnover (in times)	11.23	10.42	8%
Interest Coverage Ratio (times)	5.78	5.43	6%
Current Ratio (times)	1.54	1.59	(3%)
Debt Equity Ratio (times)	0.38	0.30	24%
Operating Profit (EBIDTA) Margin (%)	20.8%	17.2%	21%
Net Profit Margin (%)	7.8%	5.0%	56%
Return on Net Worth (%)	6.6%	4.1%	59%

* Debtors turnover is computed net of provision for rebate to customers and on average of opening and closing debtors

Explanations for variation of 25% or more in Key Financial Ratios

1. Net Profit Margin: Increased primarily on account of the increase in net profit in FY 2025-26

2. Return on Net Worth: Increased primarily on account of the increase in net profit in FY 2025-26