Gujarat Industries Power Co Ltd Management Discussions

Your Company, jointly promoted by Gujarat Urja Vikas Nigam Limited (GUVNL) (erstwhile Gujarat Electricity Board (GEB)), Gujarat Alkalies and Chemicals Limited (GACL), Gujarat State Fertilizers and Chemicals Limited (GSFC) and Petrofils Co-operatives Limited (PCL) to cater to their captive power requirements, has completed Forty-One years on 01^st June, 2026, since its establishment in the year 1985.

It is a matter of pride that your Company, which began as the first group captive power plant in the country, has transformed into a dynamic Independent Power Producer (IPP) with total installed generation capacity of 1859.40 MW including RE capacity of

1049.4 MW.

SECTOR OVERVIEW

Power Generation in India:

An overview of the Power Sector in India during FY 2025-26 is given hereunder:

Electricity Generation (MUs) Target vis-a-vis Achievement for FY 2025-26:

Particulars	Thermal	Hydro	Nuclear	Bhutan (Import)	Total
Target * (MUs)	1503662	155674	56592	9472	1725400
Achievement (in Mus) **	1307130	167203	55190	7831	1537356
Achievement (in %)	86.93	107.41	97.52	82.68	89.10

*Figures are rounded off to nearest digit.

** Provisional based on Actual cum-Assessment. [Source: Central Electricity Authority (CEA)] Installed Generation Capacity (As on 31/03/2026)

	Thermal
All India	Coal/Lignite	Gas	Diesel	Total	Nuclear	Hydro	RES @ (MNRE)	Grand Total
MW*	228560	20122	589	249271	8780	51415	274688	532739
%	91.69	8.07	0.24	46.79	1.65	9.65	51.56	100.00

*Figures are rounded off to nearest digit [Source: Central Electricity Authority (CEA)]

The installed generation capacity in the country, as on 31^st March, 2026 was 532739 MW. Coal, with around 47% share, whereas Renewable Energy Sources (RES) accounted for around 51.56% of the Installed Generation Capacity as on 31/03/2026, emerging as increasingly significant contributor to the installed generation capacity in the country. India achieved the milestone of 50% of its cumulative electric power installed capacity from non-fossil fuel sources in June 2025, five years ahead of the 2030 target set under its Nationally Determined Contribution (NDC) to the Paris Agreement.

The break-up of Renewable Energy installed capacity addition of 274688 MW as on 31^st March, 2026 is as follows:

			Bio Power
Particulars	Small Hydro Power	Wind Power	Bio Mass Power	Waste to Energy	Solar Power	Hydro	Total Capacity
MW	5171	56094	10869	877	150260	51414	274688
%	1.88	20.42	3.96	0.32	54.70	18.72	100

The above figures indicate that Wind and Solar Power account for nearly 75% of the installed generation capacity addition, demonstrating the success achieved due to Government of Indias thrust for development of Wind and Solar Power as major RE source and thereby reducing carbon footprints.

Electricity - Capacity Addition and Generation Target vis-a-vis Achievement:

The Indian power sector has historically been characterized by demand-supply gap which has been increasing over the years. The capacity addition and electricity generation for financial year 2025-26 shown below amplifies the same:

(a) Generation Capacity Addition vis-a-vis Achievement for 2025-26:

The fresh Generation Capacity Addition for FY 2025-26 against targeted capacity addition till 31/03/2026 is shown below:

	Thermal	Hydro	Nuclear	Total
Target Addition (in MW) *	12860	4850	1400	19110
Achievement (in MW) *	8640	3620	700	12960
Achievement (in %) *	67.19	74.64	50.00	67.82

*Figures are rounded off to nearest digit. [Source: Central Electricity Authority (CEA)].

As seen above, the capacity addition of 68% achieved during the FY 2025-26 against targeted addition. Electricity Generation (MUs) Target vis-a-vis Achievement for FY 2025-26:

	Thermal	Hydro	Nuclear	Bhutan (Import)	Renewable Energy Sources	Total
Target * (MUs)	1503662	155674	56592	9472	275000	2000400
Achievement (in MUs)**	1307130	167203	55190	7831	310585	1847941
Achievement (in %)	86.93	107.41	97.52	82.68	112.94	92.38

*Figures are rounded off to nearest digit.

**Provisional based on Actual cum-Assessment. [Source: Central Electricity Authority (CEA)].

(b) Electricity Generation Target of conventional sources for FY 2025-26:

The electricity generation target for the year 2025-26 was fixed as 2000.4 Billion Units (BUs) i.e. growth of around 9.3% over actual generation of 1829.698 BUs for the previous year (2024-25) [Source: Central Electricity Authority (CEA)].

The generation during 2025-26 was 1847.941 BUs as compared to 1829.698 BUs generated during 2024-25, representing a growth of around 0.99% [Source: Central Electricity Authority (CEA)].

(c) Target Capacity addition for FY 2025-26 from conventional sources

As per CEAs Load Generation Balance Report (LGBR) for year 2025-26, a capacity addition of 21,315 MW has been considered for the year 2025-26 comprising 13,210 MW of Thermal, 5,205 MW of Hydro and 2,900 MW of Nuclear capacity.

Thermal Plant Load Factor (PLF):

The average All India Thermal PLF (%) (Coal & Lignite based) stood at 65.57% for FY 2025-26 as compared to 69.45% for FY 2024-25. (Source: Ministry of Power).

Fuel Availability for Power Generation:

Availability and quality of coal and availability of gas for power sector continued to be a critical issue for thermal generation growth.

Coal:

With around 42.90%, i.e. about 228560 MW, of the installed capacity of 532740 MW as on 31^st March, 2026 being contributed by Coal based Power Plants, Coal continues to remain a key fuel for power generation.

As per Gross Energy Generation Programme approved by Ministry of Power, Coal-based generation is expected to continue to be the predominant source of electricity accounting for about 1503 Billion Units (BU) i.e. 69.21 % of 2040 BUs estimated generation for the year 2026-27. (Source: Load Generation Balance Report (LGBR)2026-27).

The domestic coal requirement has been estimated to be 866.4 Million Tonne for the year 2026-27 and 1025.8 Million Tonne for the year 2031-32 and estimated requirements of 28.9 MT of coal imports for the plants designed to run on imported coal (Source: National Electricity Plan 2022-32).

Gas:

Owing to the reducing availability of Natural Gas from the domestic gas fields and also due to increasing cost of Imported R-LNG, the share of gas-based power generation has steadily declined over the last few years. The installed capacity has marginally decreased 24119.21 MW in the year 2025-26 as against 24533 MW of year 2024-25 (decrease by 1.68% in installed capacity terms).

Nationally, Gas available from KG basin remains severely restricted. The Ministry of Petroleum & Natural Gas (MoPNG) sustained the framework keeping the power sector at third priority in standard domestic allocation matrices, trailing behind the City Gas Distribution (CGD) / LPG sector and the Fertilizer manufacturing sector.

As per the Gross Energy Generation Programme, gas-based generation is estimated at 37.00 Billion Units (BUs) i.e.1.48% of 2040 BUs estimated generation for the year 2025-26. [Source: Load Generation Balance Report (LGBR)2026-27J.

The National Electricity Plan (NEP) 2022-32 envisages no increase in installed capacity of gas-based power plants of 24824 MW with a projected share of 2.8% in total Installed capacity (projected) of 900422 MW by end of 2031 -32. [Source: National Electricity Plan (NEP) 2022-32J.

The Ministry of Power (MoP) has recommended that Power sector be given the highest priority as far as domestic gas allocation is concerned in view of power shortage in the country.

Renewable Energy:

With the rising demand for electricity and the limited availability of conventional fuel sources, the need to harness alternative energy solutions, particularly renewables, has become more urgent than ever. Increasing awareness of the advantages of clean energy has further driven a renewed commitment from all stakeholders across the energy ecosystem.

Indias steadfast commitment to ambitious climate goals has earned global recognition. Our achievements align with our aspirations, demonstrating remarkable progress in sustainable energy. India boasts the worlds fastest-growing renewable energy capacity and has emerged as a premier destination for investments in the sector. With a clear vision for the future, India is dedicated to achieving energy independence by 2047 and reaching Net Zero emissions by 2070.

India has achieved a landmark in its energy transition journey by reaching 50% of its installed electricity capacity from nonfossil fuel sources in June, 2025 · five years ahead of the target set under its Nationally Determined Contributions (NDCs) to the Paris Agreement. This significant milestone underscores the countrys steadfast commitment to climate action and sustainable development, and signals that Indias clean energy transition. As the country moves toward the goal of 500 GW of non-fossil capacity by 2030 and net-zero emissions by 2070. [source: MNRE, GOI press release dated 14/07/2025].

India has achieved a historic milestone by securing third place globally in renewable energy installed capacity, surpassing Brazil, as per the IRENA Renewable Energy Statistics 2026 (data as of December 2025).

Total Renewable Energy Installed Capacity (GW)

Country	Capacity
China	2258.02
USA	467.92
India	250.52
Brazil	228.20
Germany	199.92
Japan	134.53
Canada	110.51
World	5149.28

Indias total power generation during 2025-26 (up to March 2026) reached 1,847.941 BU. The share of non-fossil fuels in total generation reached 29.2% in 2025-26 (538.97 BU).

Total of 283.46 GW of capacity from non-fossil fuel sources has been installed in the country as on 31.03.2026. This includes 274.68 GW Renewable Energy (150.26 GW Solar Power, 56.09 GW Wind Power, 11.75 GW Bio Energy, 5.1 7 GW Small Hydro Power, 51.41 GW Large Hydro Power) and 8.78 GW Nuclear Power capacity.

In FY 2025-26, the Ministry of New & Renewable Energy (MNRE) implemented several landmark policies to accelerate Indias clean energy transition. These included reducing GST on renewable energy devices to 5%, extending BCD exemption for capital goods used in lithium ion cell manufacturing for Battery Energy Storage Systems (February, 2026 - March, 2028), and launching the Renewable Energy Equipment Import Monitoring System (REEIMS) portal for real time tracking of imports to ensure transparency and compliance. MNRE also recommended revision of the RCO compliance framework under the Energy Conservation Act, 2001, subsuming state level RPO targets into a unified national framework.

The CERC introduced amendments to transmission regulations, including ISTS waiver provisions for RE and BESS projects, a non solar hour connectivity framework, and guidelines for Virtual Power Purchase Agreements (VPPA). Additionally, MNRE rolled out a pilot Contract for Difference (CfD) scheme for 500 MW RE projects, issued the National Geothermal Energy Policy (Sept 2025), inaugurated the Jaiv Urja Mitra programme for skill development in biomass and CBG, and notified the revised Solar Systems, Devices, and Components Goods Order, 2025 (QCO 2025) to strengthen quality standards for solar PV modules, storage batteries, and inverters.

In FY 2025-26, Indias generation progress in renewable energy reflected strong growth, with fossil fuels contributing 1,306.95 BU (70.8%), marking a 4.12% decline year on year, while renewables including hydro generated 483.79 BU (26.2%), registering an 18.25% increase. Within renewables, solar generation rose to 173.52 BU ( + 20.4%), and wind generation reached 106.09 BU ( + 27.3%), underscoring Indias accelerating clean energy transition and strengthening its position as a global leader in renewable power.

[source: MNRE, GOI press release dated 08/04/2026].

India achieved its highest-ever annual wind capacity addition of 6.05 GW during FY 2025-26 crossing the landmark of 5.5 GW capacity addition in FY 2016-1 7, this also represents an increase of nearly 46% over the capacity in FY 2024-25 marking a decisive acceleration in Indias onshore wind deployment trajectory [source: MNRE, GOI press release dated 06/04/2026] The Ministry of New and Renewable Energy (MNRE) has reported robust progress in Indias clean energy sector for the Financial Year 2025-26. With a record annual capacity addition of 50.91 GW, the total installed renewable energy (RE) capacity in the country has reached 274.68 GW as of 31^st March, 2026, up from 220.10 GW in the previous fiscal. This performance reflects Indias steady advancement towards the target of achieving 500GW of non- fossil fuel-based capacity by 2030, as part of its commitment under the Panchamrit goal set by Prime Minister Shri Narendra Modi. [source: MNRE, GOI press release dated 08/04/2026]

Renewable Energy accounted for 51.56%, i.e. 274688 MW, of the total installed capacity as on 31/03/2026. [Source: Central Electricity Authority (CEA)]

Source wise cumulative RE Generation for FY 2025-26

Source	Generation in Million Units (MUs)*	Generation in %
Bagasse	9940	02.08
Biomass	4140	00.87
Small Hydro	12010	02.51
Large Hydro	167200	35.00
Solar	174760	36.58
Wind	106700	22.33
Others	3030	00.63
Total	477780	100.00

*Rounded off

Cumulative RE capacity as on 31/03/2026

The cumulative RE installed capacity (in MW) for all India and Gujarat as on 31/03/2026 was as follows:

Sector	Achievements (March 2026) (MW)	Cumulative Achievements as on 31/03/2026(MW)
		All India	Gujarat
Wind Power	962.34	56094.84	15642.26
Solar Power	6656.35	150260.70	29309.32
Small Hydro Power	0.00	5171.36	113.30
Bio Mass (Bagasse) Co-generation	0.00	9821.32	65.30
Bio Mass (Non-Bagasse) Co-generation	111.86	1047.85	12.00
Waste to Power	14.90	324.24	7.50
Waste to Energy (off grid)	4.79	553.12	45.05
Large Hydro Power	250.00	51414.67	1990.00
Total	8000.24	274688.10	47178.33

Strategy for enhancing renewable energy capacity

Risks, transitioning from fossil fuels to renewable energy is crucial. To accomplish these objectives, Indias power sector is also undergoing a transformative journey, brimming with enthusiasm for tapping into Renewable Energy from diverse renewable sources.

In line with the Prime Ministers announcement at COP26, Ministry of New and Renewable Energy is working towards achieving 500 GW Non - fossil-based electricity generation capacity by 2030.

The Government of India has introduced a range of policies and initiatives to encourage the adoption of renewable energy technologies. These measures encompass incentives, subsidies, and regulatory frameworks designed to incentivize the transition to renewable energy sources. Notably, the National Action Plan on Climate Change (NAPCC) emphasizes the National Solar Mission and aims to significantly increase the share of renewable energy in the national energy mix.

Details / glimpse of major ongoing various schemes of the Ministry during the year are as follows:

• Solar Energy: India crossed the 150 GW milestone with cumulative installed solar capacity of 150.26 GW as on 31/03/2026, comprising 110.43 GW utility-scale, 25.73 GW rooftop, and 14.10 GW KUSUM/off-grid projects. FY 2025-26 recorded the highest-ever annual addition of 44.61 GW, surpassing the 34 GW target and nearly doubling the previous record of 23.83 GW in FY 2024-25, including a monthly peak of 6.66 GW. Distributed solar saw its largest growth at 16.31 GW (36% of total), with 8.71 GW rooftop and 7.67 GW KUSUM, benefiting over 42 lakh households, of which 22.7 lakh were added in FY 2025-26 under PMSG. Of the remaining 28.30 GW, ~ 15 GW came via PPA route projects and ~13 GW from C&I, including captive projects. Overall, the C&I sector contributed ~15 GW (34%), while rooftop additions included 6.72 GW under PMSG-MBY and ~2 GW from C&I

Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan (PM KUSUM): During the year 202526, the scheme has seen tremendous growth in terms of installation. Till March, 2026 1053 MW have been installed in Component A, 10.65 Lakhs numbers of pumps have been installed in Component B & 24.39 Lakhs pumps has been solarized under component C of the scheme.

The Pradhan Mantri Surya Ghar: Muft Bijli Yojana (PMSG: MBY) This scheme targets to achieve rooftop solar installation in 1 Crore household in residential sector by FY 2026-27 with the outlay of 75021 crores. PMSG: MBY has shown remarkable progress since its launch as on 19/03/2026, 34.30 lakh rooftop solar systems have been installed.

• Central Public Sector Undertaking (CPSU) Scheme for Grid connected Solar Photovoltaic (PV) Power Project: as of 31/03/2026, around 8.2 GW of projects have been awarded under this scheme, with around 2.87 GW commissioned and balance is under implementation.

• Development of Solar Park and Ultra Mega Solar Power Projects: Under this scheme, 57 Solar Parks with cumulative capacity of 39,958 MW in 13 states have been approved, of which 18 Solar projects with an aggregate capacity of 13054 MW have been fully developed and 6 Parks with aggregate capacity 15181 MW partially developed.

• PLI Scheme: National Programme on High Efficiency Solar PV Modules: MNRE, GOI is implementing the production Linked Incentive (PLI) Scheme for National Programme on High Efficiency Solar PV Modules, with outlay of 24,000 Crores. 48337 MW fully/ partially integrated solar PV module manufacturing capacities have been awarded under the schemes and are under implementation.

• Green Energy Corridor: As on 31/03/2026, 9767 KM of Intra State Transmission lines have been constructed and 22689 MVA intra state substations have been charged, under phase-I of the Intra State Transmission System (InSTS) Green Energy Corridor (GEC). Under the Phase - II of the InSTS GEC, 76 out of 91 packages have been tendered as on 31/03/2026 of which 74 packages have been awarded with 3970.34 Crores disbursements to the States.

• Human Resource Development Programme: Total 1,24,793 candidates were trained in solar, wind, and green hydrogen sectors to support installation, operation, and maintenance of RE projects. This includes 7,380 under HRD (5,301 placed), 1,13,458 under PM-SGMBY, and 3,955 under NGHM.

• Renewable Energy Research and Technology Development (RE-RTD) Programme: Under RE -RTA Programme, 11 R&D Projects were continued with emphasis on indigenization, cost reduction, reliability and efficiency improvement of renewable energy system and components.

• Wind Energy: India has fourth highest wind installed capacity in the world with a total installed capacity of 56.09GW as of 31/03/2026 of which 6.06 GW was added during the calendar Year 2025. In addition to 29.01 GW of projects are under lamentation.

• Bioenergy: as on 31/03/2026, the cumulative installed capacity of bioenergy projects (cogeneration, waste to energy, and waste to power) stood about 11.75 GW. a total 51.04 Lakhs of small biogas plants (1-25m3) and 368 medium sized biogas plants (above 25m³ - 2500m³) with cumulative off-grid power generation capacity of 22.24 MW have been installed.

• Green Hydrogen: The Green Hydrogen Mission, was launched on 04/01/2023 with 19,744 Crores outlay from 2023-24 to 2029-30 including an outlay of 1 7490 crores for strategic Inventions for Green Hydrogen Transition (SIGHT) Programme. The objective of the Mission by 2030 is to produce at least 5 Million Metric Tonnes per Annum of Green Hydrogen. Further, the expected outcomes of the Mission include RE capacity addition of 125 GW, over 8 lakh crores in total investments, creation of over 6 lakh full time jobs and aversion of 50 MMT per annum of CO² emissions.

NEW INITIATIVES

Apart from the progress achieved under the schemes outlined as above, The Ministry introduced policy reforms and enablers to push progress in segments like Green Hydrogen, offshore wind, solar rooftop, decentralized renewables and geothermal energy. Key examples are noted below:

• The Green Hydrogen Certification Scheme of India was officially launched in April,2025.

• Official standards for Green Ammonia and Green Methanol were issued in February, 2026.

• Under the Strategic Interventions for Green Hydrogen Transition (SIGHT) program, incentives have been awarded for 3,000 MWPA of domestic electrolyser manufacturing capacity.

• Three major ports-Kandla, Paradip, and Tuticorin-have been designated as GreenHydrogen Hubs to serve as centers for production and export.

• Multiple pilots were sanctioned across hard-to-abate sectors, including 208 crore for transport (37 vehicles and 9 refueling stations) and 84 crore for the steel sector.

• Four Hydrogen Valley Innovation Clusters (Odisha, Kerala, Pune, and JHV) were sanctioned with a total of 170 crore.

• The Small Hydro Power (SHP)Development Scheme for the period FY 2026-27 to FY 2030-31 with an outlay of 2584.60 crore for installation of Small Hydro Power (SHP) Projects of an approximate capacity of 1500 MW has been approved by the Parliament. The scheme will support small hydro projects (between 1-25 MW capacity) to come up in different states and will especially benefit hilly and North Eastern states with high potential for such projects

• Vayumitra Skill Development Programme (Phase - II) launched for training Wind Farm Engineers, including a Training of Trainers (ToT) component.

• Jaiv-Urja Mitra Skill Development Programme launched to develop manpower for roles such as Agri-Residue Aggregator, Biomass Depot Operator, and O&M Technicians for CBG and biomass-based industries, promoting rural employment.

OPPORTUNITIES AND CONCERNS Opportunities:

Gross Generation Programme- 2026-27:

The Ministry of Power has approved the following Gross Generation Programme of CEA for the year 2026-27:

Fuel / Source	Generation Programme (Billion Units)
Coal	1412.000
Lignite	37.000
Natural Gas	30.087
Diesel / High Speed Diesel (HSD)	0.000
Naphtha	0.000
Thermal Total	1479.087
Nuclear	62.734
Hydro	168.769
Bhutan Imports	4.410
Total	1715.000
Renewables	325.000
Grand Total	2040.000

[Source: Central Electricity Authority LGBR 2026-27]

Power supply position during 2026-27

The anticipated power supply position during 2026-27 is presented in the table as follows:

Particulars	Energy (Million Units)	Peak (MW)
Requirement.	18,86,625	2,71,643
Supplied / Availability.	19,34,161	2,82,707
Surplus ( + )/Shortage (-).	( + )47,537	( + )11,064
%Surplus ( + )/Shortage (-).	( + )2.5%	( + )4.1%

[Source: Central Electricity Authority LGBR 2026-27]

The Electricity Generation Target from conventional sources fixed by Ministry of Power (MoP) for FY 2025-26 was as follows: Electricity Generation Target for FY 2025-26:

	Thermal	Hydro	Nuclear	Bhutan (Import)	Total
Target (BUs)	1503.00	156.00	57.00	9.00	1725.00

[Source: Central Electricity Authority (CEA)].

In order to provide cheaper power to consumers, large size power projects are being developed at different locations by various project developers.

India is endowed with huge renewable sources for energy. Both technology routes for conversion of solar radiation into heat and electricity, Solar Thermal and Solar Photovoltaic (PV), can effectively be harnessed providing huge scalability for solar power in India. With the increased focus on Research and Development for reducing the costs of setting up Solar Power projects and the tariffs being offered for Solar Power; the sector provides bright opportunities.

Your Directors are pleased to inform that the Company has been allotted land by Govt. of Gujarat (GoG) in the Great Rann of Kutch near Khavda for development of a 2375 MW Renewable Energy (RE) Park. The said RE Park forms part of the prestigious 30 GW Renewable Energy Park being developed near the International Border in the Great Rann of Kutch, envisaged as one of the worlds largest renewable energy development initiatives. The Ministry of New and Renewable Energy (MNRE), Government of India, has approved the entire RE Park under the Ultra Mega Renewable Energy Power Project (UMREPP) Scheme - Mode 8, thereby enabling the project to avail the benefits of Central Financial Assistance (CFA).

Your Directors further inform that major work orders for development of critical RE Park infrastructure, including Pooling Substations (PSS), internal roads, drainage systems and associated infrastructure facilities have been awarded and substantial progress has been achieved at site.

The dedicated 400 kV Transmission Line from Pooling Substation-1 (PSS-1) up to KPS-II Substation has been successfully completed and charged on 30^th April, 2025. Further, PSS-1 has been successfully energized and is fully available for evacuation of the entire designated power capacity.

The Company has also successfully completed the construction of internal roads, drainage networks and pond development work within the RE Park area, thereby establishing critical infrastructure required for seamless project execution and future operations.

Construction activities for the 1200 MW Pooling Substation-2 (PSS-2) is completed and is ready to energize in synchronization with the readiness of the KPS-II, CTUIL Substation for grid integration and power evacuation.

The Company is progressing with the development of the RE Park in a phased and systematic manner, and the entire RE Park capacity is expected to be fully developed and operational by December, 2026

600 MW Solar Power Project at Khavda:

Your Directors are pleased to inform that the Company has successfully secured the 600 MW Solar Power Project under the Green shoe Option of the tender floated by Gujarat Urja Vikas Nigam Limited (GUVNL). Pursuant thereto, the Company received the Letter of Intent (LoI) from GUVNL in May 2023 for development of the said project.

For effective execution and implementation of the project, the Company appointed M/s. Tata Consulting Engineers Limited (TCE) as the Project Management Consultant (PMC). Further, work orders for the Balance of System (BoS) package as well as supply of Solar PV Modules were awarded in line with the project implementation schedule.

Your Directors are proud to state that the Company has successfully commissioned the entire 600 MW(AC) Solar Project at GIPCLs 2375 MW Khavda RE Park in a phased manner, achieving full commissioning on 25^th December, 2025. This milestone represents the highest-ever single capacity addition of 600 MW (AC) achieved by the Company, with phased commissioning commencing from June, 2025.

The project is now fully operational and has achieved Commercial Operation Date (COD) on 25^th December, 2025. The generated solar power is being supplied to GUVNL under a long-term Power Purchase Agreement (PPA) executed for a tenure of 25 years, thereby strengthening the Companys renewable energy portfolio and reaffirming its commitment towards sustainable and green energy development.

500 MW Solar Project at Khavda

Your Directors are pleased to inform that the Company has executed a Power Purchase Agreement (PPA) with Gujarat Urja Vikas Nigam Limited (GUVNL) in October 2023 for development of the 500 MW Solar PV Project at the Khavda RE Park. The said PPA has subsequently been approved by the Gujarat Electricity Regulatory Commission (GERC) vide its Order dated 25/09/2024.

In line with the project implementation schedule, the Company has awarded contracts for the Balance of System (BoS) package as well as supply of Solar PV Modules for the 500 MW Solar Project. The project site has been fully mobilized, and construction activities under the BoS package are presently at an advanced stage of execution.

The Company is also exploring business opportunities in the following areas:

• Solar Park

• Solar Projects

• Wind Projects

• Long Duration BESS

• Pumped Storage Projects

A dedicated Business Development Cell has been set up to look for new business opportunities.

Your Company has signed MoU with Government of Gujarat in Vibrant Gujarat Regional Conference at Vadodara in June, 2026 to set up projects having investment worth of 29,235Cr.

On 06/12/2023, your company and Indian Oil Corporation Limited (IOCL) signed a non-binding Memorandum of Understanding (MoU) to explore potential business opportunities through the creation of a joint venture and the perceived benefits of research and development in the fields of indigenous battery technology, biofuels, green hydrogen / green ammonia technology, etc.

Pumped Storage Projects (PSPs) have been identified by the Ministry of Power, Government of India as the best storage option for our country. In view of perceived benefits, your Company has entered into a Non - Binding Memorandum of Understanding with NHPC Limited on 17/10/2023.

The Company is also actively pursuing the development of Energy Storage Projects at various strategic locations, including Vadodara and Khavda, as part of its long-term vision to strengthen grid stability, enhance renewable energy integration, and support the evolving energy transition landscape and the 165 MW Station-II is being re-purposed as a Long Duration Battery Energy Storage System (BESS) using Vanadium Redox Flow Battery Technology for the first time on grid scale in the country.

The assets of Gas Power Plant shall be refurbished and utilized to optimize BESS cost and implementation timeline. GUVNL has given in-principle approval for the establishment of Pilot 20 MW / 120 MWH VRFB facility under Section-62 of the Electricity Act, 2003. EPC tender process is underway.

Your Directors are pleased to inform that GIPCL has been entrusted by the Government of Gujarat to establish a 750 MW lignite-based thermal power project in July, 2025 to strengthen grid stability and meet rising demand in South Gujarat region. GUVNL granted in-principle approval for a 25-year PPA in August 2025, while lignite fuel will be supplied by GMDC from Valia Mine (E, F, G blocks). Project land is already in possession at Village: Vastan, Taluka: Mangrol, Dist.: Surat, consultants for project management and environment have been appointed, and major site enabling works are completed. The EPC tender for the 750 MW project was floated on 17^th June, 2026.

Your Directors are pleased to inform that GIPCL Surat Lignite Power Plant (SLPP) Phase - I Units (2x125 MW), commissioned in 1999 and in commercial operation since February, 2000, have completed over 26 years of operation. Due to ageing and deterioration in Lignite quality vis-a-vis design value, Renovation & Modernization (R&M) is essential to reduce System Partial Loading, Outages, improve Reliability and Availability and extend unit life. The Detailed Project Report (DPR) was finalized in February, 2024 and GUVNL has given approval for the DPR and Techno-Commercial Proposal in month of May, 2025 involving life extension of 10 years. A Project Management Consultant has been appointed for Renovation & Modernization (R&M) and Life Extension (LE) activities. Order has been placed on BHEL in month of April-2026 for the identified R&M activities. Based on BHEL delivery schedule, Renovation and Modernization (R&M) implementation is planned in FY 2028-29 (first unit) and FY 2029-30 (second unit).

Key Risks and Concerns:

Power sector is a highly capital-intensive industry with long gestation periods before commencement of revenue streams (construction / commissioning periods of 4-5 years) and an even longer operating period (over 25 years). As most of the projects have such a long-time frame, there are some inherent risks in both the internal and external environment.

The macro economic factors like the growth of the economy, interest rates, as well as the political and economic environment have a significant effect on the business environment and the sector as a whole.

The graduation from the regulated regime to a competitive scenario has made developers conscious of the costs incurred (both capital and operating costs) and delays in equipment delivery schedules due to inadequate manufacturing capacity in the country.

New policies have boosted the security of utilities revenue directly impacting both their willingness and ability to pay for the power purchased. Over the long term, unless Aggregate Technical and Commercial (AT&C) losses are reduced, the ability of state utilities to meet their obligations will be of grave concern.

Considering the proposed capacity addition and the capitalintensive nature of power projects, high level of debt financing will be required. The company, sector and group level exposures of various banks and insurance companies need to be increased in order to adequately fund the proposed capacity addition. Your Company is dependent on the domestic market for its business and revenues. The Companys power generating facilities are located in the State of Gujarat and the entire revenue of the Company is derived from the domestic market. These factors may potentially expose the Companys business to risks of a significant nature pertaining to the state of the economy. Adverse changes in the Government policies or regulations, the taxes levied by the Central or State Governments or removal of tax concessions, exemptions or incentives, or claims by tax authorities may affect the financial condition and operational results of the Company.

Generation from gas-based power plants has become unviable for the Grid and hence the Vadodara Gas Based Stations are non-operational. Majority of the Gas Based Power Plants in the country are in-operative.

To remain unaffected by the grid disturbances, your Company has developed systems to isolate its Power Stations from the grid. To mitigate the concerns, the external environment is monitored and the internal environment is managed on a continuous basis.

REVIEW OF COMPANYS BUSINESS:

The Company at present has a combined installed capacity of 1859.40 MW at various locations in Gujarat as follows:

Power Plants	Installed capacity (MW)
A. Non- Renewable
Vadodara Station - I.	145
Vadodara Station - II.	165
Surat Lignite Power Plant (SLPP), Village Nani Naroli, Taluka Mangrol, Dist. Surat - Phase I & II.	500
Sub Total (A)	810
B. Renewable
Solar Power Plants
Vastan, Taluka Mangrol, Dist. Surat.	05
1 MW Distributed Solar Power Plants at Amrol, Dist. Anand and Vastan, Dist. Surat.	02
Gujarat Solar Park, Charanka, Dist.	80
Banaskantha.	75
Raghanesda Solar Park, Dist. Banaskantha.	100
Vastan Lignite Mine, Ta. Mangrol, Dist. Surat	75
GIPCL 2375 MW Khavda RE Park, Dist. Kutch	600
Sub Total (B)	937
Wind Farms
Kotadapitha, Dist. Amreli.	15
Nakhatrana, Dist. Kutch.	21
Rojmal, Dist. Botad.	26
Kuchhdi, Dist. Porbandar.	50.4
Sub Total (C)	112.4
GRAND TOTAL (A+B + C)	1859.4

MANAGEMENT CONTROL, INTERNAL CONTROL AND

INTERNAL AUDIT SYSTEMS:

Your Company has put in place internal control systems and processes commensurate with its size and scale of operations.

Few recent initiatives in that direction are given below:

1. Implementation of an Enterprise Resource Planning (ERP) System developed by SAP for better control on cash flows, costs, automation of procurement processes and digital office after a comprehensive study of various functionalities. This System has control processes designed to take care of various audit requirements;

2. Technical up gradation of servers and functional modules of SAP ERP;

3. Central Data Monitoring Cell has been set up for monitoring of operations data for plants and projects under Solar and Wind at various locations;

4. Centralization of processes wherever feasible, with IT support, to reduce cycle time and avoid repetition of activities.

In addition, the Company has a system of Internal Audit and Review through external independent firm of Chartered Accountants. Pre-audit of payments is being carried out by an internal team of Accountants as well as by external Agencies which oversee the implementation and adherence to various systems and processes and preparation of Financial Statements as per Generally Accepted Principles and Practices. The internal control measures such as defining various levels of the authority through delegation of powers, well laid down procurement procedures, checks and balances in the financial system to safeguard the assets, budgetary controls and variance analysis are in place.

The procurement and operational maintenance activities are planned well in advance to avoid any possible risk of late delivery of materials/inputs, delay in attending to maintenance needs etc. Your Company stores and maintains all the relevant data and information as a back-up, to avoid any possible risk of loss of any important business data.

A qualified and independent Audit Committee of Directors periodically reviews the internal audit reports.

FINANCIAL REVIEW:

These financial statements are prepared in accordance with Indian Accounting Standard (Ind AS), under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values, the provisions of the Companies Act, 2013 (the Act) (to the extent notified) except in so far as the said provisions are inconsistent with the provision of the Electricity Act, 2003 and guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued thereafter.

Your Companys total income for the year ended 31^st March,2026 was 158623 Lakhs as compared to 132508 Lakhs in the previous year.

The total income of the current year includes earnings from sale of electrical energy of 148268 Lakhs as compared to 124795 Lakhs recorded in the previous year.

The Profit Before Tax was 24467 Lakhs as compared to 27295 Lakhs (after exceptional item) in the previous year.

The Net Profit of 40241 Lakhs has been arrived at after taking into account the Current Income Tax expense of 3413 Lakhs and Deferred Tax income of 19187 Lakhs.

During the year, Gross Block has increased by 347266 Lakhs. The increase was mainly due to capitalization of 600MW Solar Power Plant at Khavda and 75MW Solar Power Plant at Vastan.

The total dividend payout (proposed) for the year @ 4.10 per Equity Share is 6363.85 Lakhs.

As on 31^st March 2026, the net worth of the Company stood at 384024 Lakhs as against 352380 Lakhs as at the end of previous financial year ended on 31^st March, 2025.

SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS:

Key Ratios	2025-26	2024-25	% Variance*	Explanation
Trade receivables turnover ratio (in times)	6.42	5.18	-23.84%	The change is mainly due to commissioning of 600MW Solar Power Plant at Khavda and 75MW Solar Power Plant at Vastan.
Inventory Turnover ratio (in times)	6.75	5.49	-22.91%	The change is mainly due to commissioning of 600MW Solar Power Plant at Khavda and 75MW Solar Power Plant at Vastan.
Interest Coverage Ratio (in times)	3.21	9.55	-66.38%	The change is mainly due to commissioning of 600MW Solar Power Plant at Khavda and 75MW Solar Power Plant at Vastan.
Debt Equity Ratio (%)	87.95	51.57	-70.55%	The change is mainly due to term loans disbursed for ongoing and newly commissioned capital projects.
Current Ration(in times)	0.89	0.99	-9.96%	The is mainly due to reduction in current assets on account of utilisation of cash and cash equivalents towards ongoing and newly commissioned capital projects.
Net Profit Margin (%)	27.14	16.94	84.86%	The change is mainly due to one-time non-recurring tax credits arising from re-measurement of deferred tax liabilities and recognition of MAT credit entitlement pursuant to transition to the new concessional corporate tax regime effective from 01st April, 2026.
Return on Net Worth (%)	10.48	6.00	74.64%	The is mainly due to one-time non-recurring tax credits arising from re-measurement of deferred tax liabilities and recognition of MAT credit entitlement pursuant to transition to the new concessional corporate tax regime effective from 01st April, 2026.

* Positive Figure indicates Favorable Variance.

SUBSIDIARY COMPANY:

The Company has no Subsidiary Company.

HUMAN RESOURCE & INDUSTRIAL RELATIONS:

Human Resources are considered as one of the most critical resource in the business which can be continuously improved to maximize the effectiveness of the Organization. Human resources build the Enterprise and a sense of belonging inculcates the spirit of dedication and loyalty amongst them towards strengthening the Companys sustainable growth. All personnel continue to have healthy, cordial and harmonious approach thereby enhancing their contribution to the Company.

The strength of your Company lies in its team of highly competent and highly motivated personnel. This has made it possible for your Company to make significant improvements and progress in all areas of activities.

During the year 2025-26, the Company maintained its high standards of Safety. Your Directors place on record their sincere appreciation for the unstinting efforts and contribution put in by the employees of the Company.

The Company continued in its endeavor to impart appropriate and relevant training to its employees to upgrade their skills to meet the challenges that are ahead and to enhance their performance. The Company has also taken up an exercise on career growth and planning by identifying potential and training needs of employees and taking suitable steps to meet them.

The industrial relations remained cordial throughout the year both at Vadodara and at SLPP Plants.

Your Directors take this opportunity to express their appreciation for the co-operation and assistance received from the Promoters, Government, Local Government Bodies, Financial Institution, the Companys Bankers, Electricity Companies, Employees, Customers, Suppliers, Investors and all other stakeholders. Your Directors express gratitude to the investors for their confidence reposed in the Company.

CORPORATE SOCIAL RESPONSIBILITY AND WELFARE:

Being a conscientious corporate body, your Company has been actively involved in the socio-economic development and welfare of the people living around the Power Plants at Vadodara, SLPP and it Re locations through Society for Village Development in Petrochemicals Area (SVADES) at Vadodara and through Company promoted NGO - Development Efforts for Rural Economy and People (DEEP) at SLPP. Your Company has also undertaken CSR initiatives in and around the Villages where its Renewable Energy Projects, both Wind and Solar are situated.

The Company has several CSR initiatives and has undertaken projects in the areas of Health, Education, Livelihood / Women Empowerment, Development of Village Infrastructure, etc.

The Companys CSR approach is focused on the development of communities around the vicinity of its plants / facilities.

Major Corporate Social Responsibility (CSR) initiatives by your Company revolve around building community infrastructure, focus on women empowerment and their role in development. Interventions include Health, Education, Livelihood Development and Village Infrastructure Development like roads, culvert, multi-purpose shed, sanitation, crematorium, surface water recharge pits, re-development of ponds, etc. in surrounding villages.

ACKNOWLEDGEMENT:

Your Directors take this opportunity to express their appreciation for the co-operation and assistance received from the Promoters, Government, Local Government Bodies, Financial Institution, the Companys Bankers, Electricity Companies, Employees, Customers, Suppliers, Investors and all other stakeholders. Your Directors express gratitude to the investors for their confidence reposed in the Company.

CAUTIONARY STATEMENT:

Statements in the Management Discussion and Analysis forming part of the Boards Report, describing the objectives, projections, estimates, expectation and predictions of the Company may be “Forward Looking" statements within the meaning of applicable security regulations and laws. These statements are based on certain assumptions and expectations of future events. The Company assumes no responsibility in respect of forwardlooking statements herein which may undergo changes in future on the basis of subsequent developments, information or events.