Hil Ltd Management Discussions

Macroeconomic overview

Global economy1

During 2024, the global economy experienced steady growth of nearly 3.2%. This growth came in the backdrop of continued geopolitical conflicts. The year was also one of the biggest years for elections globally as voters in more than 60 countries went to polls. With economic challenges, a consistent theme across most countries; several incumbent parties either lost or suffered significant setback and thereby resulting in shifting international trade policies.

Global headline inflation continued to decline last year amid easing energy and food prices. As a result, headline inflation by late 2024 was at or below target in over 60% of economies and remained only slightly above target elsewhere. Global trade in goods and services also rebounded in 2024, growing by an estimated 2.7%. Growth in goods trade accelerated in the second half of 2024, following a weaker-than- expected recovery in the first half.

Advanced economies expanded by ~1.7% in 2024, as steady U.S. growth and a modest pickup in the Euro area were dented by a sharp slowdown in Japan. Growth rates were divergent across emerging and developing economies with slower than expected growth in several energy exporting countries and more robust growth in others. In energy-importing economies excluding China, growth remained largely steady through the year, supported by a broad-based pickup in consumption and investment.

During the year, GDP growth in Europe continued to be relatively tepid with the European Union (EU) estimated to have grown at 1.0% and euro area at 0.8%. Even as real income growth had slowly begun to result in higher consumption during the year, exports declined as the industrial sector continued to struggle. Investment activity also remained relatively weak, weighed down by still tight monetary policy, subdued external demand, reduced profit margins, and weak business sentiment. Manufacturing activity remained weak on the back of persistently higher energy prices.

Outlook1

After enduring a prolonged and unprecedented series of geopolitical and economic shocks, the global economy appeared to be stabilizing, with steady yet underwhelming growth rates. However, the scenario has changed over the last few months as governments around the world reorder policy priorities and uncertainties have climbed to new highs. The global growth during the year is expected to be adversely impacted with effective tariff rates at levels not seen in nearly a century and a highly unpredictable trade environment. In addition the progress made last year in reigning inflation has mostly stalled with an increasing number of countries exceeding their inflation targets.

In this environment; the world GDP is projected to grow at 2.8% during 2025. Over 2025, growth is forecasted at ~1.4% for the advanced economies; lower than 1.8% achieved in the previous year. This growth is largely driven by the US which is forecasted to grow at 1.8%; Europe expected to drag down growth. Even though the emerging and developing economies however are expected to grow significantly faster at ~3.7%; this will still be lower than the growth of 4.3% achieved during 2024.

Continued geopolitical and policy uncertainty is expected to weigh on Eurozone economic growth, slowing down the anticipated recovery. During 2025, the Euro area is projected to grow at 0.8% before picking up modestly to 1.2% in 2026.

Indian economy overview

The Indian economy grew at a steady rate of 6.5% in FY20252, however this was much lower than the 8.2% growth recorded in the previous year. Through-out the year market and external conditions remained difficult. Indian consumer demand experienced a slowdown, particularly in the urban areas driven by stagnant wage growth, sluggish job market, higher interest rates and a slowdown in credit growth. While rural demand remained relatively stronger, the overall trend showed a muted consumption landscape across businesses. Lower overall demand also meant higher competitive intensity as several companies across sectors resorted to pricing cuts to drive demand with profitability getting impacted therefore. In addition lower Government spend further impacted business sentiments and results. The industrial sector grew by about 6.2% in FY25. Even as the first quarter saw strong industrial growth of 8.3%, growth slowed down in the ensuing quarters due to multiple reasons such as lower manufacturing exports, extended monsoons impacting sectors like mining, construction and lower / delayed Government spend on several infrastructure related projects partly on account of the General Elections.

Outlook

Overall, the outlook for the Indian economy appears positive. In dias growth trajectory is expected to remain strong, driven by rising consumer demand, improved investment activity and policy support. By reducing personal taxes as announced during the budget, the Government has also enabled significant increase in disposable income for middle-class households which is likely to result in higher consumer spending.

Indias real GDP is projected to grow at 6.5% for the current financialyear 2025-26 (as per RBI); even as trade tensions and global uncertainty triggered by USAs imposition of tariffs might have some adverse impact on the growth. The agriculture sector is expected to perform well this year, due to healthy reservoir levels and strong crop production. The positive outlook for agriculture is likely to support rural demand, which remains strong. Urban consumption is also gradually increasing, aided by a rise in discretionary spending.

Investment activity has already gained momentum this year and is likely to improve further. This improvement is driven by sustained higher-capacity utilization and likely higher government spending on infrastructure this year. This will therefore also have a significant positive impact on the manufacturing sector. Easing inflationary pressures and accommodative monetary policies are expected to boost credit flow which will support both businesses and individuals. With macroeconomic stability in place, the economy is strategically placed to sustain its growth momentum. On the demand side, household consumption is expected to improve, while prospects of fixed investment remain bright.

Industry overview

Infrastructure industry3

Recognizing the crucial role that robust infrastructure sector plays in the economic and societal growth of the country, the Government is significantly accelerating its investment in infrastructure. The Union Budget for FY26 has allotted Rs 11.21 lakh crore for infrastructure development. This allocation prioritises crucial sectors such as transportation, urban development and rural infrastructure, with a focus on bolstering resource allocation and economic growth. Even as this years allocation is only marginally higher than previous years allotment of Rs 11.11 lakh crore, the actual increase is likely to be much higher considering that in 202425 the entire allocated amount was not spent, for example estimated actual spend during the year on water supply and sanitation was Rs 43K crore lower than allocation.

Inclusive economic development and better connectivity across India is a key theme this year. The UDAN - Regional Connectivity Scheme aims to connect larger parts of country through air travel by adding 120 new destinations and targeting 4 crore passengers over the next decade. On the backbone of strong infrastructure, developing 50 top new tourist destinations sites along with world class facilities will further create construction related opportunities.

An allocation of Rs 2.55 lakh crore has been made to the Ministry of Railways, part of which will be to support modernization of over 1,000 stations. Similarly, the Ministry of Road Transport and Highways has been allocated Rs 2.87 lakh crore, a significant portion of this funding will be to support the Bharatmala Pariyojana, a national highway development program aimed at improving road connectivity.

In addition, there is continued focus on both rural and urban sector development through schemes such as Jal Jeevan Mission (JJM) which has been extended upto 2028, AM RUT 2.0, PMAY, etc. These initiatives are set to elevate both rural and urban living standards and further augment demand for construction solutions.

Real estate industry4

Currently contributing around 7% to Indias GDP; real estate sector is slated for strong growth driven by increasing urbanization, rising incomes, government initiatives and technology advancements. The sectors share of GDP is expected to increase to over 16% over the next 20 years signifying the important role that the sector plays in the nations economic growth. Despite certain challenges such as increasing construction costs and affordability, recent policy reforms and increased institutional investments are creating a supportive ecosystem. The real estate landscape in India is also evolving with emerging segments such as data centers, co-living, senior housing etc., with role of traditional asset classes therefore declining.

The Governments initiatives on ensuring transparency in governance, ease of doing business, and clear policy frameworks are providing a strong foundation for the sectors growth. The implementation of RERA (Real Estate Regulation and Development Act) has enhanced accountability, while initiatives like Smart Cities Mission and PMAY-U continue to accelerate urban development.

The real estate industry across segments is also increasingly adopting alternate materials to promote sustainability and reduce carbon footprints. AAC blocks and other eco-friendly materials are being used to improve resource efficiency and minimize environmental impact. Innovations in building technologies, such as smart energy management systems and AI-driven predictive maintenance, are aiding practices that drive sustainability.

Fibre cement roofing industry

Fibre cement is widely utilised as a roofing material in the commercial, industrial and residential sectors. Owing to its resilience to varied weather conditions such as rain, hail and strong winds, fibre cement is the preferred choice of builders for roofing applications.

The fibre cement roofing market is anticipated to grow marginally at ~1% this year after having declined by 1-2% during FY25. This growth is largely driven by Governments continued focus on rural infrastructure development. For FY26 the Ministry of Rural Development has been allocated Rs 1.88 lakh crore which is nearly 8% higher than previous years estimated spend of Rs 1.74 lakh crores. In addition, during the year, rural consumer demand is expected to improve supported by increased Government spending on welfare schemes, increased minimum support prices and gradual recovery in household incomes.

Pipes industry

During FY24 the Indian plastic pipes and fittings industry faced several challenges. Even though the industry had grown at ~10% CAGR between FY20 and FY24; growth during FY25 was significantly lower at ~5% driven largely by PVC price volatility, sluggish Government expenditure (on projects such as JJM) and overall lower customer demand. However, the industry continues to hold substantial growth potential and is expected to grow at 10-12% CAGR over the next couple of years, driven by higher Government spends and robust real estate and agriculture demand. Indias per-capita-plastic pipe-consumption is lower than global average and significantly lower than that of US, Europe and China implying significant headroom for growth. However, continued volatility in PVC material prices might adversely impact industry margins and volumes in the near to mid-term.

Despite these challenges, the long term prospects for the industry remain promising. The Government has launched several initiatives and affordable housing measures. One notable example is the Jal Jeevan Mission, which has been allocated Rs 67,000 crore and extended until 2028.5 The Ministry of Housing and Urban Affairs (MoHUA) has approved the construction of over 3.53 lakh houses under the Pradhan Mantri Awas Yojana - Urban 2.0 (PMAY-U 2.0). Continued Government focus on PMAY-Urban is likely to support the demand for affordable housing in the urban real estate segment and therefore the plastic pipes industry.

The plastic pipes and fittings industry is also witnessing technological advancements, shift towards sustainability (such as use of recycled or biodegradable PVC), modular systems, and improved materials such as composites with enhanced properties like flexibility and chemical resistance. Certain new pipe technologies such as oPVC that improve mechanical properties of pipes are also gaining increased acceptance. Additionally, automation and digital technologies are being integrated into manufacturing processes, leading to increased efficiency and precision.

Flooring industry

The global flooring market is estimated to be over USD 250 billion and expected to grow at a 5-6% CAGR over the medium term. With increasing construction activity across residential and commercial sectors and trends for more sustainable flooring solutions, the demand for flooring continues to rise globally.

US and Europe are the two largest flooring markets globally. The US market is estimated to be over USD 43 billion and forecasted to grow at 2-3% to reach nearly USD 55-60 billion over the next 2-3 years. Resilient flooring is now the largest flooring segment in US surpassing carpets. The US resilient flooring market boasts a diverse range of products tailored for both residential and commercial use. Among these, vinyl flooring, especially LVT / LVP (luxury vinyl tile/ plank) have the highest share driven by favourable performance characteristics such as being cost- effective, water-resistant, easy installation, improved durability likeness to natural materials.

The European market is projected to grow at 2-3% CAGR over the next few years. Similar to the US, the European flooring is also increasingly shifting towards resilient choices. Across both these markets strong consumer preference for eco-friendly choices is also emerging. Therefore, market for sustainable flooring solutions that combine environment related responsibility with style and high-quality is growing rapidly.

Company overview

BirlaNu Limited (formerly HIL Limited), part of the USD 3 billion CKA Birla Group, is a home and building products and services Company. For nearly 80 years BirlaNu has been a pioneer in redefining the art of creating home and building solutions. The Companys portfolio spans Pipes, Construction Chemicals, Putty, Roofs, Walls and Floors. As a leading player in the building solutions space, BirlaNu integrates purpose and innovation into every offering, ensuring we meet evolving customer needs.

In FY25, HIL Limited was rebranded to BirlaNu Limited. BirlaNu represents a bold evolution of our legacy, blending innovation with heritage. The new brand is inspired by the people we serve and driven by a passion for continuous growth. As the world evolves, we remain committed to shaping spaces where life unfolds and inspiring beautiful, lasting design with our customers at the heart of everything we do.

We want BirlaNu to be a brand that empowers homeowners, builders, and designers to bring their vision to life—crafting buildings that stand the test of time. And thats why our brand campaign is anchored around a simple, powerful idea: “Build Your World.”

Our updated brand architecture now unifies all our businesses—Pipes, Putty, Construction Chemicals, Walls, Roofs, and Floors—under a single identity. This alignment will help every customer and every partner understand who we are and what we stand for.

This is not just about changing how we look, it signifies a bold growth agenda. This rebranding is at the heart of a strong, strategic push toward fast-paced, value-building growth.

BirlaNu is not just a rebrand. Its a renewed promise. It signals our readiness for new customers, new markets, new conversations and new ideas. It reflects the world we live in today—faster, more digital, more design-led and deeply conscious of sustainability.

The Company has 32 best-in-class manufacturing facilities and two innovation hubs across India and Europe.

At BirlaNu, we are built on a strong value system and the legacy of the CKA Birla Group. We foster an inclusive, technology driven workplace that empowers our people. Recognized as a Great Place to Work, we offer career mobility, flexible work options, and a focus on well-being. With transparent communication, progressive policies, and several talent programs, we invest in our peoples growth and impact.

We are driven by three key brand values as we shape the future - 1) “Innovation” to redefine brilliance and simplify the future, 2) “Excellence” by challenging the status quo and raising the bar and 3) “Sustainability” for shaping the future for generations to come.

BirlaNus key strengths

Pipes

BirlaNu provides advanced water management solutions through two trusted brands: BirlaNu Leakproof Pipes and Topline. With a diverse range of over 20 products, its offerings includes CPVC, uPVC, SWR, Silent, UGD, Foamcore, Pressure, Column, Casing, PPR, HDPE, MDPE, Gas Pipes, Electrofusion Fittings, FHTC Fittings and Water Tanks—all paired with expertly engineered fittings and solvents.

Our innovation, TruFiT Technology, is at the heart of our offerings, ensuring precise tolerances for easy, leakproof assembly. Setting a new industry standard, BirlaNu Leakproof Pipes delivers peace of mind for homeowners and effortless installation for plumbers.

With cutting edge European technology, we deliver products with dimensional accuracy, uniform quality and superior performance. As pioneers in in-house CPVC compounding (under patent) we ensure full control over formulation for durability. Certified by ISO 45001, ISO 14001, ISO 9001, GreenPro, Ecolabel and GRIHA we prioritize sustainability and safety. Our adoption of Organic Based Stabilizers (OBS) for uPVC and Pressure Pipes sets a new benchmark, replacing traditional heavy metal stabilizers; and thereby further strengthening our innovation and sustainability credentials.

Besides pipes, we also have a comprehensive range of water storage solutions. Our water tanks are a robust solution ensuring clean and safe water storage. Built for durability and sustainability, these tanks are easy to install and resistant to corrosion and UV radiation.

Construction Chemicals

BirlaNu Construction Chemicals portfolio is designed to deliver innovative solutions for stronger, safer and long standing structures and for modern construction requirements. Our range of BirlaNu Tough Tile Adhesives, BirlaNu Tough Tile Grouts, BirlaNu Surface Cleaners and BirlaNu Plasters are engineered to support versatile applications across residential, commercial and large-scale projects. Our innovative TruBond technology ensures superior strength, durability and easy application for a flawless tile finish. Besides the tiling segment, the Company also offers several innovative products across stone fixing, protective coatings, dry mix and repair solutions.

Putty

BirlaNu TruColour Putty is a trusted solution for creating stunning, vibrant walls. Our putty products offer a comprehensive range of high quality solutions tailored to meet diverse construction needs, from time tested, versatile putty and durable Waterpoof putty to Gypsum plaster and weather resistant Texture putty. BirlaNus innovative TruColour Technology enhances the durability and aesthetics of building surfaces with vibrant, fade resistant colours. Using weather resistant pigments, it ensures superior coating, long lasting finishes and eco-friendly production. TruColour sets a new standard in putty, offering builders and homeowners a reliable, high performance solution for lasting beauty and protection.

BirlaNu also offers a range of high-quality primers designed to provide superior adhesion, opacity and durability for all the surfaces.

Roofs

A market leader with nearly 25% market share in India, Charminar brand is synonymous with the category in India. Charminar roofs are high quality, visually appealing and durable fibre cement roofing solutions designed for multiple segments - residential, commercial and industrial. Our range of products combine strength and innovation, providing thermal insulation, fire resistance and superior performance.

Charminar is known for its innovative products such as colour coated roofs for contemporary spaces, and Ultracool roofs for cooler indoors. We also offer market leading sustainable product options such as "Charminar Fortune” for our eco-conscious customers. Besides roofing products, we offer various tools and accessories such as EPDM washers etc. that provide exceptional properties such as anti-corrosion, sealing, heat and harsh weather resistance for long- lasting structural support on the roofs.

Walls

BirlaNu Aerocon offers a versatile range of nature positive beautiful, wall solutions that combine strength, style and sustainability. Across AAC Blocks, sandwich panels, fibre cement and designer boards, each of our product is designed to meet the evolving demands of contemporary construction and balance form and function. Engineered for efficiency and durability, these products enable faster execution, superior thermal and acoustic performance and a reduced environmental footprint compared to traditional materials, helping customers build better, smarter and greener spaces.

AAC Blocks: Light-weight and offering excellent acoustic and thermal insulation, our Autoclaved Aerated cement (AAC) Blocks are crafted from fly ash, cement, lime and aeration agent to enable faster building while reducing cement and steel consumption. Compliant with IS 2185 Part 3 standards, they ensure consistent quality.

Panels: With two fibre-reinforced cement facing sheets surrounding lightweight cement core, our Panels redefine construction with their innovative design. Ready to install, they offer unmatched strength, durability and efficiency for wall applications. These panels are a smart, sustainable choice for building partitions, prefab structures, mezzanine flooring, cladding, boundary walls and fire separation making them a smart choice for safe, efficient and eco-friendly building solutions.

Designer Boards & Planks: By combining durability with design flexibility, our designer boards and planks redefine surface aesthetics. Engineered for both interiors and exteriors, these eco-friendly boards offer a natural grainy texture, enhanced visual appeal, dimensional stability and long term resistance to weather, termites and water.

Floors

Parador

Parador is a leading global interiors brand that specializes in engineered wood, laminate, vinyl flooring and the eco-friendly resilient flooring "Modular ONE” for residential, retail, hospitality and commercial segments. Founded in Germany in 1977, we are proud of our European heritage and our global reputation for exemplary design expertise and production. With a strong emphasis on craftsmanship, innovative design and quality, the products are manufactured in Germany and Austria. The business has a truly global business presence with sales in more than 80 countries worldwide.

At Parador, our mission is to be a conduit for expression for architects and designers. We appreciate the power of design and the emotional effect of a beautiful interior. We produce products of the highest quality and our decades of experience and craftsmanship inform everything we do.

We are committed to minimizing our impact on the environment, taking a holistic approach and working to the highest ecological standards. Sustainability is at the core of what we do, from design to production, we are committed to eco-friendly practices.

Business and financial performance

Business performance

BirlaNu achieved net revenue from operations of Rs 2,310 crore as against Rs 2,231 crore in the previous year on a standalone basis, an increase of 3.5%. On a consolidated basis, the Company registered net revenue from operation of Rs 3,615 crore as against Rs 3,375 crore in the previous year recording a growth of 7.11%. However, this growth has to be seen in the backdrop of a difficult market and external scenario, where most of the industry and peers have reportedunderwhelming results and which is true for both India and for Parador in Europe.

During the year under review, BirlaNu registered profit before tax (PBT) of Rs 26.36 crore before profit from exceptional items, on standalone basis as against Rs 95.82 crore in the previous year, recording a decline of 72% mainly due to pricing pressure emanating from intensifying competition in all categories and volatility in resin prices. Loss before tax on a consolidated basis for the financial year 2024-25 stood at Rs 43.45 crore as against profit of Rs 35.54 crore in the previous year, recording a de-growth of 222% largely due to continued weak demand for flooring product in Europeon market, in addition to overall subdued demand environment and soft pricing scenario.

On a consolidated basis, the net worth of the Company as of March 31, 2025 stood at Rs 1,211 crore as against Rs 1,253 crore in the previous year. The consolidated earnings per share (basic) for the financial year ended March 31, 2025 stood at Rs (43.63) per share as against Rs 46.15 per share for the financial year ended March 31, 2024.

Detailed segment-wise operational performance of the Company for the financial year 2024-25 is mentioned below.

Roofs

In Roofs, we sustained our market leadership and our ~23% market share, despite a decline in overall demand, reflecting our strong brand and channel strength. In this segment, we were keen to protect our price premium over the competitors. The Companys focus on micro market management has resulted in enhancing rural tehsil penetration and adding new dealers to the strong Charminar channel network. Despite muted demand, during the year we were able to significantly increase our channel billing across several focus states.

Considering the overall muted demand and pricing scenario during the year, we also doubled down on managing our profitability through various initiatives.

The Company continues to adopt and deploy digital tools viz. Industry 4.0, TMS, SFA, etc. across our plants and sales team to enhance efficiencies and productivity. During the year we also significantly leveraged digital campaigns on various platforms to generate additional leads and engaged with over 10K+ influencers. “Charminar” and “Charminar Fortune” brands continue to enjoy the trust of the customers backed by the Companys enhanced customer-centric approach, unparalleled quality, superior after sales customer service and strategically positioned plants and depots to serve its customers effectively while optimising freight expenses.

Walls

This year the Walls business faced a combination of subdued demand, lower Government spends in infrastructure and increased competitive intensity with several new capacities being commissioned. While revenue for Panels and Boards increased by 1.9% and 6.0% respectively over last year; the year was challenging for Blocks segment where sales declined by 4.1%.

To tide over this situation, we have already taken several steps to expand our distribution network across segments, ramp up our sales with new customers and in newer geographies and increasing the share of value-added products in this portfolio. In addition to mitigate impact of declining NSR and manage profitability we have launched specific “Missions” across segments on margin improvement.

On the marketing front, BirlaNu Aerocon enhanced its brand presence across key infrastructure and industrial exhibitions to connect with key architects, engineers and developers. Strong digital lead acquisitions helped to specify the products across key projects. We further enhanced our sustainability credentials and were awarded the prestigious Green- Pro certification for Panels and Boards.

Polymers

This segment consists of “Pipes” and “Construction Chemicals and Putty”. During FY25, despite sustained efforts on driving cost efficiency across operations and procurement; the performance on profitability of the Polymer Solutions suffered largely due to pricing pressures resulting from commodity price decline and competitive intensity. Consolidated revenue in FY25 was Rs 634.81 crore compared to Rs 535.38 crore last year driven largely by volume growth in Pipes and Construction Chemicals business.

BirlaNus efforts were concentrated on expanding its distribution network, securing key project accounts with reputable builders and developers nationwide, and diversifying the product offerings. BirlaNu remains committed to strengthening our relationships with influencers such as plumbers, painters and applicators, through targeted retail marketing initiatives to cultivate greater brand loyalty.

Pipes

In a significant move to bolster our Pipes business, in April 2024, BirlaNu acquired Crestia Polytech Private Limited and its four group companies under the brand ‘Topline, a renowned brand of Pipes and Fittings in Eastern India. With this acquisition, the Company - gained additional capacity of ~64,000 MTPA in East India, enhancing its ability to serve the eastern states while also securing customer access and necessary government approvals for relevant products and geographic segments. With this the Company has further expanded its product segments including HDPE pipes and fittings, PPR, FHTC, electrofusion fittings and water tanks. We have since successfully integrated Crestia with BirlaNu and several synergies across sales and operations are already being realized.

During FY25, the business achieved consolidated volume and revenue growth of 76% and 57% respectively over last year. This impressive growth came in the background of significantly reduced Government spending on projects such as Jal Jeevan Mission and unprecedented decline in resin prices which thereby affected both revenue and margins for the industry.

The sales growth for the business was driven by targeted distribution expansion efforts in the retail segment, as well as a focused approach to technical sales in the institutional and the Government segment, particularly within marquee residential projects nationwide. In addition, sustained efforts around material and labour costs, as well as working capital and inventory helped limit the impact of declining prices on profitability.

During the year we also significantly amped up our marketing efforts with significant engagement with the channel partners including influencers.

In addition, several digital initiatives to improve efficiency and accelerate sales were deployed this year. Key amongst these was the launch of our Lead Management / CRM platform for the B2B business.

Putty and Construction Chemicals

In FY25 revenue for the segment de-grew by 7.9% which was largely on account of lower putty sales driven by intense competition. The Construction Chemicals sales, however, were strong growing at 23% year-on year. The tiling segment in particular witnessed robust sales growth of 57% during the year.

The Company is committed to the segments growth, with a strong management focus and dedicated sales teams. The Company is building a strong PAN India presence with a robust distribution network. BirlaNu continues to drive strong engagement program with channel partners and influencers via various on ground workshops and meets demonstrating the wide range of product lines and application procedures.

Floors

Paradors performance in 2025 reflected resilience and opportunity in the face of adversity. Despite recessionary macro-economic conditions and weak consumer sentiment, which led to a slowdown in construction and flooring demand across core European markets, we were able to pivot effectively. Leveraging Companys agile pricing strategy, restructuring our sales teams, and expanding into new markets, it doubled down on growth through commercial segments, product innovation, and improved execution. Strong cost discipline was maintained and capital deployment was optimized to ensure lean operations. As a result, the Company delivered a 7% revenue growth and a 9% volume growth in FY25.

In Q4 alone, volumes increased by 9% and revenue by 10% — marking the Companys best quarterly performance in the last 12 quarters. With strong margin delivery, the Company reported a positive EBITDA of Euro 2.0 million. Entering FY26, the management remain cautious of the prevailing tariff and macro-political uncertainties across Europe and global markets, but are committed to carrying forward the momentum of Q4 into the full year as presence in high-potential markets like the Americas, Middle East, and Asia begins to yield results.

Key financial ratios

Sl. No Particulars	FY 2024-25	FY 2023-24	% Change	Comments
1 Debtors Turnover (Times)	12.82	16.49	(22.27)	-
2 Inventory Turnover (Times)	5.76	5.71	0.91	-
3 Debt Services Coverage Ratio (Times)	0.41	0.68	(40.46)	Reduced profits have resulted in the increased variance.
4 Current Ratio (Times)	1.04	1.34	(22.62)	-
5 Debt Equity Ratio (Times)	0.23	0.26	(11.40)	-
6 Operating Profit Margin (%)	5.14	7.82	(2.68)	-
7 Net Profit Margin (%)	0.39	2.95	(86.70)	Reduced operational profits during the year.
8 Return on Net Worth (%)/ Return on Equity (%)	0.74	5.71	(87.09)	Variance is due to reduced profits for the year.
9 Return on Capital Employed (%)	3.23	7.07	(54.35)	Variance due to reduced operating profits and increased borrowings.

(All numbers on standalone basis)

*For more details, please refer note no. 56 of the standalone financial statements forming part of this Annual Report.

- Super Brand Award 2025

“Charminar” and “Birla Aerocon” have been awarded the Super Brands 2024-25 recognition in the category of Cement Roofing Sheets by the Super Brands Council for six consecutive years. Super Brands is the worlds largest independent arbiter of branding, and this recognition pays tribute to the strongest and most valuable brands in the world through their publications. Achieving "Superbrands Status” strengthens a brands position, adds prestige, and sets it apart from competitors.

- Brand of the Year by Realty+

“Charminar” and “Birla Aerocon” received the INEX award in the Roofing & Ceiling Ideas category and in the Cement & Concrete category, respectively, from Realty+. The INEX awards program acknowledges brands that contribute to innovation, technology, and excellence in building materials, construction products, and systems that shape the future of the built environment.

Birla Aerocon received the Harit Bharat award in the Harit Bharat Construction Materials category from Realty+. This award recognizes organizations and individuals who are committed to sustainable initiatives and contribute to environmental stewardship through their products and services.

- GreenPro Certification

“Charminar Fortune”, “Birla HIL CPVC Pipes”, “Birla Aerocon Panels, Boards and AAC blocks” received the Green Pro certification in the Green Product category by CII - Green Products. This certification recognizes products that meet the stringent requirements of the Green Pro Eco label by the CII - Green Products & Services Council, confirming that these products are eco-friendly and sustainable.

- Great Place to Work, 2024

The Company has been certified as a Great Place to Work for the sixth time in a row for the year 2024-25 with an outstanding trust index score of 94. The Company is ranked amongst:

- Indias Best Companies to Work for 2024: Ranked #12 in India

- Best Workplaces in Asia™ in 2024: Ranked # 41 in Asia

- Best in industry: Cement & Building Materials, 2024

- Great Place To Work?, India; Re-certified from March 2024 to March 2025

- Top 25 Indias Best Workplaces™ in Manufacturing, 2024 & 2025

- Top 50 I Large Indias Best Workplaces Building a culture of Innovation by All, 2024

- Top 50 Large Indias Best Workplaces for Millennials, 2024

The Great Place To Work Certifications are a testament to Companys commitment to positive and enriching employee experience. As we go forward, we work towards our shared vision of becoming one of most admired brands in the home and building segments.

Intentional Innovation

BirlaNu has established advanced Innovation and R&D centres in both India and Germany, facilitating robust product development and research. The cutting-edge infrastructure at its Hyderabad Innovation centre, which includes an in-house pilot plant recognized by the Department of Scientific & Industrial Research (DSIR) of the Government of India, is dedicated to adopting innovative processes and studying industry dynamics to maintain a competitive edge. Continuous investment in technology has allowed BirlaNu to enhance the production and development of eco-friendly products. The innovation team focuses on improving existing offerings and creating value- added products tailored to consumer and industry demands through a consumer-centric approach.

Leveraging state-of-the-art facilities in India and Germany, BirlaNus Innovation team is utilizing automation, IoT, and smart manufacturing to improve production efficiency and minimize waste.

Parador continues to invest in innovations related to product, operations and technology. Product innovations are holistic in design and concentrate on meeting customer need while also accelerating the differentiators that Parador offers into the marketplace. Recent innovations are focused on providing product differentiation across multiple channels and geographies to offer relevance to both the global and local consumer as well as demonstrating competence in customization and choice to allow designers an ability to express themselves within the interior space. Each product is carefully engineered for durability and longevity, incorporating innovative installation systems. Operational innovations are targeted at digitization and automation to drive flexibility within our manufacturing processes without increasing complexity or costs. Technology advancements are focused on both back end and front end that offer Parador a platform to expand its reach across new geographies and channels.

From Paradors eco-friendly Modular ONE flooring to TruFiT leakproof pipe technology, our innovations are built for the evolving needs. Our Ultra Cool Roofs combat heat for better comfort and energy efficiency, while Aerocon AAC blocks and panels enable faster, stronger and sustainable construction. Our advanced Organic Based Stabilizer (OBS) for pipes and innovative electrofusion with integrated service saddle ensure greater durability, reliability and efficiency.

Technology & digital

BirlaNu is steadily advancing its digital transformation strategy aimed at boosting operational efficiency and addressing business challenges through the integration of advanced technologies.

By effectively embedding Industry 4.0 principles across our operations, we have made significant progress in smart manufacturing initiatives. Realtime monitoring through sensor-based systems has allowed for improved equipment productivity, reduced unplanned downtimes, and more efficient maintenance schedules. We are also piloting a digital manufacturing dashboard that will allow for decentralized monitoring and oversight into manufacturing operations. This would build in the future to a potential AI monitored manufacturing twin of our plants. Enhancements in logistics through advanced transport management systems and the automation of numerous operational tasks aim to increase efficiency while ensuring robust cybersecurity measures are in place to protect digital assets.

Beyond the shop floor and operations, we are modernizing our enterprise architecture to support better decision-making and customer engagement. A centralized data lake now brings together insights from key business systems, making real-time, role-based analytics more accessible across the organization. The successful go-live of our new ERP platform (SAP S/4HANA) marks a major milestone, laying the groundwork for AI-powered automation in our future-looking applications, such as predictive demand forecasting, intelligent supply chain optimization, and AI agentic workflows. The approach we will be taking going ahead is to have digital- led transformations that create platforms of value realization for our customers and employees.

Customer engagement has been further elevated with the rollout of an integrated lead management and sales force automation systems, stream-lining sales planning across primary and secondary markets. These tools are already delivering tangible benefits in field force productivity, with automated visit planning, attendance, and performance tracking. Across the value chain, digitization efforts have also yielded to indirect gains — with one such example being that of our product barcoding, warehouse management and layout planning, as well as an AIML-powered SKU counting app, that significantly reduced dispatch and loading errors in our Pipes business.

To further build on our customer-centricity, the Company is in the process of implementing best in class loyalty platforms to drive synergies across its businesses. Centred on delivering customer delight, this platform would result in better sales processes, increased lead conversion rates, higher share of the customer wallet and better influencer engagement and loyalty. This would truly fulfil our digital-promise of improving transparency, reducing manual workflows, and building an agile, collaborative ecosystems for long-term mutual growth.

Sustainability

For BirlaNu, sustainability is not a choice but a responsibility that we own. We are committed to sustainable growth by reducing our environmental footprint, helping customers minimize theirs, and scaling sustainable solutions. By driving circularity - repurposing industrial waste and pioneering various industry first innovations such as OBS for pipes we are driving our sustainability agenda in a more comprehensive manner. Our zero discharge plants and expanded renewable energy integration reflects our dedication to a greener future. We are making significant investments across our various plants to increase share of solar power and thereby reduce our carbon footprint. In addition, we are continuously investing in energy efficient equipment and adopting various digital solutions such as Industry 4.0 across our operations for real-time energy tracking and analytics to further optimizing energy usage.

BirlaNu adheres to air quality standards and recycles 100% of its process water, particularly at its manufacturing facilities. The Company is engaged in establishing an emissions baseline and intensity profile to achieve reduction goals for GHG based on measurable targets.

In addition, BirlaNu prioritises environmental protection through its strong commitment to sustainability. Various measures have been implemented to reduce the environmental footprint and enhance resource efficiency. These initiatives range from optimising energy usage to minimising waste generation, all with the goal of preserving the planet for future generations.

Ethically sourced, waste conscious and powered by clean energy, we are shaping a world where responsibility and innovation go hand in hand. We are not just building but redefining what is possible in a sustainable future. Every decision we make reflects our commitment to a greener, more responsible future, because true progress is sustainable.

Human capital

Supported by a dedicated workforce of over 5,000 employees representing 30+ nationalities and a network of 150K skilled applicators, we proudly serve customers across the globe.

BirlaNu firmly believes that talent is central to its strategy, recognizing that the quality and enthusiasm of its workforce significantly contributes to enhancing stakeholder value. To achieve its organizational goals, BirlaNu has a strong focus on employee engagement and talent development.

The Company has notably attained the 12th position in the "Great Place to Work" (GPTW) rankings in India and 41st rank in the Best Workplaces in Asia™ in 2024, which is a testament to our inclusive and, positive workplace culture. A key element of this commitment

is the introduction of the JOSH Program, an initiative aimed at boosting employee engagement across all our facilities and offices.

The Company is also employing several digital initiatives to drive significantly higher level of engagement across its workforce. One such initiatives is the use of Amber, an AI based chatbot, which conducts real-time sentiment analysis across both - our existing and past employees, thereby enabling actionable insights from employee feedback that are crucial for improving engagement scores.

The Company has strengthened the "DEI at BirlaNu" initiative to enhance women representation across the organization including manufacturing and sales. The Company is committed to diversity in hiring and to encourage an inclusive workforce.

To further strengthen its recruitment process, BirlaNu has implemented competency-based assessments for campus hires and apprenticeships.

As part of our focused learning program on enhancing capabilities of our frontline sales teams and their managers, we have introduced the Sales Learning Academy - iSAIL. This program is designed to address real-time market challenges and building confidence across levels, enabling our teams to succeed in an evolving business landscape. Our commitment to - continuous learning ensures that our sales teams remain customer-focused, agile and future-ready.

As part of our corporate social responsibility initiatives, a skilling and certification program has been introduced to train tradespeople including plumbers, masons, and painters. Collectively, these initiatives aim to improve employee engagement and significantly enhance BirlaNus standing as a leader in workplace excellence and innovation.

Risk management framework

While pursuing its business objectives, BirlaNu is exposed to various risks. However, the Company has developed organisational agility to anticipate, mitigate, and manage these risks. Several measures have been implemented to assess, identify, and effectively reduce risks that may arise periodically.

BirlaNu has a robust risk management policy approved by the Board. The policy outlines the aims and principles of risk management, as well as an overview of the risk management process, procedures, and associated responsibilities of the Committee members. The Risk Management Committee and the Audit Committee supervise the implementation of the Risk Management Framework.

On a half-yearly basis, a formal report on ‘Risks that Matter is reviewed by the Risk Management and Audit Committees for its review and guidance and subsequently presented to the Board.

Internal control systems and their adequacy

BirlaNu has strong internal control systems commensurate with the business requirements, scale of operations and applicable statutes. The Board of Directors and the Audit Committee are independent of the Management and oversee the Companys internal controls adequacy and effectiveness. Such controls are deployed through policies, SOPs and Internal Financial Control (IFC) risk and control matrices. In addition, cybersecurity and digital IT general control assessment reviews are conducted periodically with the increasing use of digital applications and exposure to an external network.

Additionally, BirlaNus whistle-blower policy provides a platform for various stakeholders to report and help the organisation in averting and preventing any suspicious activity or behaviour. The whistle-blower mechanism then investigates allegations of violations in a comprehensive manner with a zero-tolerance approach towards any reported cases of ethical breach. The whistle-blower policy offers complete confidentiality and protection to the whistle-blower against any attempted harassment.

BirlaNu has an advanced internal financial controls (IFC) framework where process owners self-assess critical controls quarterly using the controls selfassessment tool, along with external evaluations by audit partners. Revised practices are updated in the control documents and timely updates to responsibilities in the execution of controls are undertaken.

Ernst & Young (E&Y) is the Internal Audit (IA) partner. With standard risk coverage, all critical business processes are thoroughly examined to understand the operations relevant to BirlaNus business. The use of tools for data analytics remains an important component of the audit review. Also, BirlaNu has an internal audit department staffed by qualified professionals who plan, conduct, coordinate and monitor audit activities and follow up on compliance and specific actions identified.

Looking ahead, BirlaNu will continue to leverage data analytics and automation in audit procedures to appropriately scope and deep dive into identified focus areas. BirlaNu will continue to increase stakeholder awareness of governance, risk and compliance through training, workshops and culture-building.

Cautionary statement

Certain statement in the MDA section concerning future prospects may be forward looking statements which involve a number of underlying identified/non- identified risks and uncertainties that could cause actual results to differ materially. The results of these assumptions made, relying on available internal and external information, are the basis for determining certain facts and figures stated in the report. Since the factors underlying these assumptions are subject to change over time, the estimates on which they are based, are also subject to change accordingly. These forward-looking statements represent the Companys current intentions, beliefs or expectations, and any forward-looking statement speaks only as of the date on which it was made. The Company assumes no obligation to revise or update any forward-looking statements, arising due to new information, future events, or otherwise.

	For and on behalf of the Board of Directors
	BirlaNu Limited
	CK Birla
Place: London	Chairman
Date: May 17, 2025	DIN 00118473