Jainam Ferro Alloys I Ltd Management Discussions

The Ferro Alloys industry continued to remain an important part of the global steel value chain during FY 2025-26. Demand for Ferro Manganese and Silico Manganese remained closely linked with steel production, infrastructure development, automotive manufacturing, engineering industries and the continuing expansion of energy and renewable infrastructure.

During the year under review, the industry continued to operate in an environment characterised by volatility in manganese ore prices, electricity costs, metallurgical coke prices, freight rates, foreign exchange movements and international alloy prices. At the same time, the industry witnessed a structural shift towards energy efficiency, renewable power, supply-chain security, automation, low-carbon manufacturing and greater environmental compliance.

India continued to strengthen its position as a major steel producer and an important producer and exporter of manganese- based ferro alloys. Growth in domestic steel production, infrastructure investment, urbanisation and manufacturing activity continued to provide a favourable underlying demand environment for Ferro Manganese and Silico Manganese.

The Companys operations are centred on the manufacture and supply of Ferro Manganese and Silico Manganese, complemented by trading activities in Manganese Ore and other allied materials. The Company also undertakes international sourcing of Manganese Ore from established origins including South Africa, France and Dubai/UAE, besides domestic procurement, with the objective of ensuring continuity of supply, optimising landed cost and maintaining suitable raw-material quality for its manufacturing operations.

The Company also imports Coke from Singapore primarily for captive consumption. Such international sourcing provides access to suitable quality and diversified supply but requires continuous management of commodity prices, freight, foreign exchange, logistics and inventory.

A significant strategic development during FY 2025-26 was the continued utilisation of the Companys captive renewable- energy infrastructure. The Companys 4.5 MWp captive solar power plant achieved Commercial Operation Date on 15 June 2024 and remained operational during the whole of FY 2025-26. The solar plant has strengthened the Companys efforts towards reducing dependence on conventional power, managing energy costs and reducing the carbon intensity of its manufacturing operations.

The Companys renewable-energy programme has subsequently entered a major expansion phase. An additional 27 MWp solar capacity became operational in May 2026 and a further 11 MWp solar capacity is expected to be commissioned in next Year. Upon completion, the Companys total solar portfolio is expected to reach approximately 42.5 MWp.

The Company believes that the combination of manufacturing capabilities, diversified raw-material sourcing and increasing captive renewable-energy capacity will strengthen its competitive position over the medium and long term.

The global Ferro Alloys market continues to show a positive long-term growth outlook. Published market estimates vary depending on the product categories, geographical coverage and methodology adopted by different research agencies. Broad estimates place the global market in the range of approximately USD 60-75 billion during 2025, with several forecasts indicating a potential market size of approximately USD 90-100 billion by 2030-2033.

The underlying growth drivers remain:

• Growth in global steel production;

• Infrastructure and construction expenditure;

• Automotive and engineering demand;

• Renewable-energy and clean-energy infrastructure;

• Increasing use of high-strength and specialty steels;

• Urbanisation and industrialisation in emerging ? economies; and

• Increasing demand for low-carbon and sustainable steelmaking inputs.

India remains one of the most important growth markets for ferro alloys due to the countrys expanding steel industry.

The Indian steel sector continued to demonstrate strong growth during FY 2025-26. According to Ministry of Steel data, crude steel production during April-December 2025-26 increased to approximately 124.55 million tonnes from 111.84 million tonnes during the corresponding period of the previous year, representing growth of approximately 11.5%. Finished steel consumption during the same period increased by approximately 7.0%.

The growth in steel production provides a favourable demand environment for manganese alloys, including Ferro Manganese and Silico Manganese. However, the industry continues to face structural challenges relating to:

• High power costs;

• Metallurgical coke availability and cost;

• Availability of suitable-grade manganese ore;

• Freight and logistics;

• Imported raw-material dependency;

• Foreign exchange volatility;

• Environmental compliance costs;

• International competition; and

• Evolving carbon-related trade regulations.

Energy efficiency and carbon management are becoming increasingly important competitive factors for ferro alloy producers.

The Companys captive solar programme is therefore not only an environmental initiative but also an important component of its long-term cost-optimisation strategy.

The 4.5 MWp solar plant was operational throughout FY 2025-26. The subsequent commissioning of 27 MWp in I May 2026 and planned completion of another 11 MWp M by next year represent a substantial increase in JK renewable-energy capacity.

The Company expects these initiatives to provide:

• Greater energy security;

• Reduced dependence on conventional electricity;

• Better management of power-cost volatility;

• Lower carbon intensity;

• Improved sustainability credentials; and

• Enhanced competitiveness in international markets.

The definitive regime of the European Unions Carbon Border Adjustment Mechanism (CBAM) commenced on 1 January 2026. Ferro alloys falling within the relevant iron and steel product categories may therefore face increasing requirements relating to embedded-emission information and carbon-cost considerations in international trade.

The Companys renewable-energy investments provide an important foundation for addressing these emerging requirements.

Ferro Alloys are essential inputs in steel manufacturing and are primarily used as deoxidising agents and alloying elements. Ferro Manganese and Silico Manganese play an important role in determining the strength, hardness, toughness, wear resistance and other properties of steel.

The demand for Ferro Alloys is consequently closely linked with the performance of the steel industry and indirectly with construction, infrastructure, automotive, engineering, railways, defence, energy and renewable-energy sectors.

The global Ferro Alloys industry is undergoing a significant transformation driven by:

• Energy transition;

• Raw-material security;

• Decarbonisation;

• Increasing environmental standards; and

• Digitalisation;

• Changing international trade regulations.

• Supply-chain restructuring;

India occupies an important position in the global Ferro Alloys industry, particularly in the production and export of manganese-based alloys.

The Company operates within this value chain through the manufacture of Ferro Manganese and Silico Manganese and through complementary raw-material trading and sourcing activities.

This Management Discussion and Analysis Report aims to:

• Present an overview of the global and Indian Ferro Alloys industry;

• Analyse market trends affecting Ferro Manganese and Silico Manganese;

• Discuss raw-material availability and price trends;

• Evaluate energy and power-cost developments;

• Discuss technological and sustainability trends;

• Highlight the Companys captive renewable-energy initiatives;

• Examine international sourcing of Manganese Ore and Coke;

• Analyse industry challenges and opportunities;

• Review the competitive landscape;

• Provide an outlook for FY 2026-27 and 2030; and

• Identify strategic priorities for sustainable growth.

2.3 Scope of Analysis

Dimension	Details
Geography	Global markets with specific focus on India, China, Europe, ASEAN, Middle East and Africa
Timeframe	Retrospective: FY 2025-26; Current developments: FY 2026-27; Outlook: 2026-2030
Product Segments	Ferro Manganese, Silico Manganese and allied manganese products
Raw Materials	Manganese Ore, Coke and other furnace inputs
Energy	Conventional electricity and captive renewable solar power
Key Topics	Market trends, pricing, production, raw materials, energy, technology, ESG and trade
Applications	Steel manufacturing, infrastructure, automotive, engineering, energy and defence
Company Focus	Manufacturing, raw-material sourcing/trading and captive renewable-energy generation

The MDA is based on secondary research from government publications, industry reports, market intelligence, trade information and publicly available information relating to steel and ferro alloy markets, together with managements assessment of the Companys business activities, operating environment and strategic initiatives.

Market estimates vary among research agencies due to differences in product definitions, geographical coverage and methodology. Accordingly, market-size figures should be considered indicative rather than absolute.

Commodity prices, freight rates, foreign exchange, geopolitical developments, trade regulations and environmental policies can change rapidly and may result in actual market conditions differing from available forecasts.

Ferro Alloys are iron-based alloys containing significant quantities of one or more elements such as manganese, silicon, chromium and other alloying elements.

They are primarily used in steelmaking for:

• Deoxidisation;

• Improving toughness and wear resistance;

• Alloying;

• Controlling grain structure; and

• Improving strength and hardness;

• Enhancing specific

• metallurgical properties.

Ferro Manganese and Silico Manganese remain among the most important bulk ferro alloys because of their extensive application in carbon steel, alloy steel and infrastructure-related steel products.

The performance of the ferro alloy industry is therefore fundamentally linked to global steel production.

The global Ferro Alloys market continued to demonstrate a positive long-term outlook during FY 2025-26.

Different market research organisations provide different estimates of market size and CAGR. These differences arise from variations in the inclusion of bulk and specialty alloys, geographical coverage and valuation methodology.

The broad market outlook indicates continued growth during 2025-2033, supported by:

• Expansion of global steel production;

• Industrialisation in emerging markets;

• Infrastructure investment;

• Growth in high-strength steel applications; and

• Automotive and transportation demand;

• Increasing demand for sustainable

• Renewable-energy projects;

The Asia-Pacific region continues to represent the largest centre of ferro alloy production and consumption, supported primarily by China and India.

Asia-Pacific remains the dominant region for ferro alloy production and consumption. China continues to be a major global producer and consumer, while India is strengthening its position as a producer and exporter of manganese-based alloys.

The region benefits from:

• Strong steel production;

• Automotive manufacturing;

• Infrastructure development;

• Renewable-energy investments; and

• Urbanisation;

• Growing industrial capacity.

Europe remains an important market for high-quality and increasingly low-carbon ferro alloys.

Environmental regulations and CBAM are expected to increase the importance of carbon footprint, traceability and sustainable sourcing.

North American demand is supported by steel, automotive, construction, infrastructure and clean-energy investments.

Infrastructure development, industrialisation and steel-consuming projects are expected to support increasing ferro alloy demand.

Africa is particularly important from a raw-material perspective because of its significant manganese and other mineral resources.

The Ferro Alloys industry during FY 2025-26 continued to be influenced by four major structural forces:

1. Steel demand;

2. Energy economics;

3. Raw-material security; and

4. Decarbonisation.

Steel remains the principal demand driver for Ferro Alloys.

Growth in:

• Roads and highways;

• Renewable-energy infrastructure;

• Railways;

• Power transmission;

• Bridges;

• Defence manufacturing; and

• Buildings;

• Industrial

• Automotive manufacturing;

• projects

continues to create demand for alloyed and high-strength steels.

Indias continuing expansion in steel production represents a significant opportunity for domestic ferro alloy manufacturers. Infrastructure investment remains one of the most important demand drivers.

High-strength and durable steels used in bridges, railways, transmission systems, renewable-energy installations and industrial structures require controlled additions of manganese and silicon.

This directly supports the long-term demand outlook for Ferro Manganese and Silico Manganese.

The automotive sector remains a significant consumer of specialty and high-strength steel.

The transition towards electric vehicles is also driving demand for lightweight, high-strength and corrosion-resistant steel applications.

Although ferro alloys are not direct battery materials in most applications, their importance in steelmaking provides an indirect linkage to the broader EV and clean-mobility transition.

Wind turbines, solar infrastructure, transmission networks and other clean-energy projects require substantial quantities of steel.

Consequently, expansion of renewable-energy infrastructure provides an additional structural demand driver for ferro alloys.

This creates a strategic opportunity for producers that can supply alloys with lower embedded carbon.

Manganese Ore is the principal raw material for Ferro Manganese and Silico Manganese. Availability of suitable ore grade, manganese content, iron, phosphorus, silica, moisture and sizing materially influences furnace performance and alloy recovery. The global manganese ore market remains exposed to production concentration and supply disruptions.

The Company has adopted a diversified sourcing approach by procuring Manganese Ore from international origins including:

• South Africa;

• Dubai/UAE; and

• France;

• Other commercially suitable sources,

in addition to domestic procurement. This diversified sourcing strategy is intended to provide flexibility in raw-material procurement and reduce dependence on any single geographical source.

4.6 CokeandReductantSecuritl

Coke and other carbonaceous reductants are important inputs in the manufacturing process. The Company imports Coke from Singapore primarily for captive consumption. International sourcing provides access to suitable quality and supply but also exposes the Company to:

• International coke prices;

• Port logistics;

• Freight;

• Import costs; and

• Foreign exchange;

• Supplier availability.

Efficient consumption and optimisation of reductant usage therefore remain important elements of cost management.

Technology adoption is increasingly becoming an important determinant of competitiveness in the Ferro Alloys industry.

Submerged Arc Furnaces remain the core production technology for bulk ferro alloys.

Future competitiveness will increasingly depend on:

• Furnace efficiency;

• Heat recovery;

• Electrode optimisation;

• Lower specific energy consumption; and

• Charge-mix optimisation;

• Better process control.

The industry is gradually moving towards:

• Real-time furnace monitoring;

• AI-based process optimisation;

• Automated process controls;

• Electrode-position monitoring; and

• Predictive maintenance;

• Data-based charge-mix optimisation.

• Digital production dashboards;

Such systems can improve consistency, reduce downtime and optimise energy consumption.

Recovery of useful manganese and metallic content from slag is increasingly relevant from both cost and sustainability perspectives.

Slag utilisation also contributes to the circular economy by reducing waste and creating secondary-value streams.

Captive renewable energy is emerging as a strategic option for energy-intensive industries.

For ferro alloy producers, renewable energy can provide both:

• Cost optimisation; and

• Carbon-intensity reduction.

The Companys solar expansion is aligned with this industry transformation.

India is one of the leading global producers and exporters of Ferro Alloys, particularly manganese-based alloys.

The industry is closely integrated with Indias steel sector and has a significant presence in states such as:

• Odisha;

• Telangana; and

• Chhattisgarh;

• West Bengal.

• Andhra Pradesh;

Indias strategic advantage arises from its large domestic steel market, established manufacturing base, availability of certain mineral resources and access to export markets. However, the industry continues to face cost and supply-chain challenges.

Ferro Alloy manufacturing is highly electricity-intensive. Power costs can have a material impact on:

• Production cost;

• Export competitiveness; and

• EBITDA per tonne;

• Overall plant economics.

This is one of the most important structural challenges for Indian producers.

The Companys captive renewable-energy programme directly addresses this issue.

The availability of suitable manganese ore remains a key concern.

International manganese ore prices may experience significant volatility due to:

• Mine supply;

• Chinese demand;

• Weather conditions;

• Global steel production; and

• Geopolitical developments;

• Inventory levels.

• Shipping disruptions;

The Companys multi-origin sourcing strategy provides flexibility in managing this risk.

Imported coke prices and availability can affect manufacturing economics.

The Companys Singapore sourcing arrangements for captive consumption provide an additional procurement channel while requiring continuous monitoring of international prices and logistics.

For imported raw materials, freight and port logistics are important cost components.

The Company needs to continuously optimise:

• Shipment sizes;

• Delivery schedules; and

• Inventory levels;

• Supplier relationships.

• Port selection;

International procurement creates exposure to fluctuations in foreign currencies.

Manganese ore and coke procurement costs can therefore change even where underlying international commodity prices remain stable.

Environmental regulations relating to:

• Air emissions;

• Waste;

• Dust;

• Energy efficiency; and

• Water;

• Carbon emissions

are becoming increasingly stringent.

Compliance is consequently both a regulatory requirement and a competitive necessity.

Indian producers compete with suppliers from China, Malaysia, Indonesia, South Africa and other producing regions. Competitiveness depends significantly on power cost, raw-material availability, freight, product quality and customer relationships.

Strengthstd>	Weaknesses
Strong domestic steel demand	High electricity intensity
Established ferro alloy manufacturing base	Dependence on imported manganese ore
Large domestic market	Exposure to international commodity prices
Established export capability	Freight and logistics costs
Availability of skilled manpower	Fragmented industry structure
Growing renewable-energy adoption	Limited technology adoption among smaller units
Opportunities	Threats
Growth in Indian steel production	International price volatility
Infrastructure expansion	Competition from China, Malaysia and Indonesia
Captive renewable power	Rising environmental compliance costs
Low-carbon ferro alloys	CBAM and other carbon-related trade measures
Export market diversification	Geopolitical supply disruptions
Digitalisation and automation	Foreign exchange and freight volatility

Ferro Manganese is an important alloying and deoxidising material used in steelmaking.

It improves:

• Strength;

• Wear resistance; and

• Hardness;

• Overall steel quality.

• Toughness;

Demand is closely related to carbon steel and alloy steel production.

Silico Manganese is an alloy of manganese, silicon and iron and is widely used as both a deoxidising and alloying material. Its dual role makes it an important input in steel production. Silico Manganese remains particularly important in Indias export-oriented ferro alloy industry.

Demand for Ferro Manganese and Silico Manganese is expected to be supported by:

• Domestic steel production;

• Engineering;

• Infrastructure;

• Renewable-energy projects;

• Construction;

• Defence; and

• Automotive;

• Export demand.

Ferro alloy profitability is primarily determined by the relationship between:

Alloy realisation - Raw-material cost - Power cost - Coke/reductant cost - Electrode cost - Conversion cost - Logistics.

Among these components, manganese ore and electricity generally have a particularly significant influence on the economics of manganese alloy production. Accordingly, the Companys raw-material sourcing strategy and captive renewable-energy programme are strategically important for maintaining competitiveness.

Indian manganese alloys have established markets in:

• Europe;

• Japan; and

• Middle East;

• South Korea.

• Southeast Asia;

However, future export competitiveness will increasingly depend not only on price but also on:

• Product quality;

• Traceability; and

• Consistency;

• Compliance with destination-market

• Delivery reliability;

• Carbon footprint;

The global Ferro Alloys market consists of large integrated mining and metallurgical groups, specialist producers and regional manufacturers.

Important global participants include:

• Glencore;

• OM Holdings;

• Eramet;

• Assmang; and

• Ferroglobe;

• other regional ferro alloy producers.

• Eurasian Resources Group;

The Indian market includes:

• Tata Steel Ferro Alloys & Minerals Division;

• Shyam Ferro Alloys;

• Indian Metals & Ferro Alloys Limited;

• Rungta Mines;

• MOIL;

• Maithan Alloys; and

• Balasore Alloys;

• other regional manufacturers.

8.1 Competitive Factors

Factor	Impact
Power cost	Major determinant of production cost
Manganese ore security	Determines raw-material cost and furnace efficiency
Coke/reductant cost	Influences conversion economics
Product quality	Determines customer acceptance and premium
Plant efficiency	Determines recovery and specific consumption
Renewable power	Supports cost and carbon competitiveness
Export logistics	Influences landed cost
Customer relationships	Supports stable offtake
ESG compliance	Increasingly important for international customers

The Companys combination of manufacturing, diversified raw-material sourcing and renewable-energy investment provides a foundation for competing in this environment.

The medium-term outlook for the Ferro Alloys industry remains positive, supported by global steel demand and Indias infrastructure and industrial development.

Global ferro alloy demand is expected to grow at a moderate pace through 2030, with Silico Manganese and Ferro Manganese remaining important bulk alloy segments.

Growth is expected to be driven by:

• Steel production;

• Electric vehicles;

• Infrastructure;

• Industrialisation; and

• Automotive;

• Green steel.

• Renewable energy;

Region	Outlook 2026-2030
Asia-Pacific	Strongest structural demand; India and Southeast Asia important growth markets
Europe	Moderate growth with strong shift towards low-carbon products
North America	Stable growth supported by infrastructure and manufacturing
Middle East & Africa	Infrastructure-led demand growth
South America	Moderate growth with resource-based opportunities

India is expected to remain one of the most attractive ferro alloy markets due to:

• Rising steel capacity;

• Automotive demand;

• Infrastructure spending;

• Renewable-energy development; and

• Urbanisation;

• Export opportunities.

• Manufacturing growth;

Captive power and renewable-energy investments are expected to become increasingly important for Indian producers.

The Companys renewable-energy programme represents one of the key strategic developments surrounding FY 2025-26 and FY 2026-27.

Particulars	Capacity	Status
Existing captive solar plant :	4.5 MWp	COD: 15 June 2024; operational throughout FY 2025-26
Additional solar plant	27 MWp	Operational from May 2026
Further solar plant	11 MWp	Expected completion by next year
Total solar portfolio after planned completion	42.5 MWp	Expected during FY 2026-27

The 4.5 MWp solar plant contributed to the Companys renewable-energy consumption during FY 2025-26.

The commissioning of the additional 27 MWp capacity in May 2026 represents a major increase in the Companys renewable- energy platform.

The further 11 MWp capacity expected by next year will take the Companys planned solar portfolio to approximately 42.5 MWp.

The expansion is expected to support:

• Lower average electricity cost;

• Improved sustainability profile;

• Reduced exposure to grid tariff volatility;

• Enhanced export competitiveness; and

• Greater energy security;

• Long-term operational resilience.

• Reduced carbon intensity;

The Company will continue to evaluate opportunities to improve the utilisation and economic efficiency of its renewable- energy portfolio.

Environmental performance is increasingly becoming a factor in customer selection and market access.

The EU CBAM definitive regime commenced from January 2026 and is expected to increase the importance of emissions measurement and carbon management for exporters to the European market.

Steelmakers increasingly seeking to reduce their overall carbon footprint may prefer suppliers capable of providing lower- carbon ferro alloys.

Kenewame^ower

Captive solar, wind and hybrid renewable-energy systems are expected to become increasingly important in energyintensive industries.

Quality consistency, customised grades, traceability and low-carbon production may increasingly differentiate leading producers.

Diversification of ore origins and strategic procurement arrangements are expected to remain important due to geopolitical and logistical uncertainties.

Risk	Mitigation Strategy
Manganese ore price volatility	Diversified international sourcing and procurement planning
Ore supply disruption	Multi-origin sourcing including South Africa, France and Dubai/UAE
Coke price volatility	International sourcing and consumption optimisation
Energy cost inflation	Captive renewable-energy expansion
Foreign exchange volatility	Monitoring and management of foreign currency exposure
Freight and logistics	Shipment planning and diversified supplier base
Trade policy changes	Diversification of export markets
CBAM/carbon regulation	Renewable power, emissions monitoring and carbon-management systems
Technology lag	Process automation and energy-efficiency initiatives
Alloy price volatility	Customer and market diversification
Working-capital pressure	Inventory and receivable management

• Manganese ore supply partnerships;

• Low-carbon ferro alloy production;

• Overseas mineral sourcing;

• Export market diversification; and

• Slag recovery and recycling;

• Product-quality and certification initiative

For the Company, the most immediate opportunity lies in leveraging its expanded renewable-energy platform together with its raw-material sourcing capabilities to improve manufacturing competitiveness.

As the Ferro Alloys industry moves towards 2030, the Companys strategic priorities are expected to focus on the following areas.

Priority Area	Strategic Direction
1. Raw Material Security	Diversify Manganese Ore sourcing and optimise landed cost
2. Energy Cost Optimisation	Maximise captive renewable-energy utilisation
3. Manufacturing Efficiency	Improve furnace efficiency and specific consumption
4. ESG & Carbon Management	Reduce carbon intensity and strengthen emissions monitoring
5. Technology	Increase automation, digital monitoring and process optimisation
6. Export Expansion	Diversify export destinations and strengthen customer relationships
7. Working Capital	Optimise inventory, receivables and international procurement cycles
8. Product Quality	Maintain consistent quality and develop value-added grades

The Company should continue to maintain a diversified procurement basket for Manganese Ore. International sourcing from South Africa, France and Dubai/UAE provides geographical flexibility and should be supplemented by domestic procurement wherever commercially and technically appropriate.

Procurement decisions should be based on:

• Mn content;

• Freight;

• Sizing; and

• Impurity profile;

• Duties;

• Total landed cost.

• Recovery;

• Moisture;

The Companys renewable-energy programme should remain a core strategic priority. The existing 4.5 MWp solar plant provided renewable-energy support throughout FY 2025-26. The additional 27 MWp capacity operational from May 2026 and the planned 11 MWp capacity expected by next year are expected to substantially increase renewable-energy availability. In parallel, the Company should continue to focus on:

• Specific power consumption;

• Charge-mix optimisation;

• Furnace efficiency;

• Energy audits; and

• Electrode consumption;

• Preventive maintenance.

The Company should progressively strengthen:

• Carbon-emission measurement;

• Water conservation & Waste management;

• Renewable-energy reporting;

• Environmental compliance; and

• Energy-efficiency monitoring;

• ESG disclosures.

The objective should be to convert sustainability investments into long-term operational and market advantages.

The Company may progressively evaluate:

• Digital furnace monitoring;

• AI-assisted process optimisation;

• Automated process control;

• Real-time energy monitoring; and

• Predictive maintenance;

• Data-based raw-material optimisation.

Technology adoption should be aligned with measurable improvements in production yield, energy consumption, quality and downtime.

The Company should continue strengthening relationships with established steel customers and explore opportunities in:

• Southeast Asia;

• Europe; and

• Middle East;

• Other emerging steel markets.

• Africa;

Long-term customer relationships and consistent product quality can reduce exposure to short-term market volatility.

The Companys Manganese Ore trading activity provides an opportunity to leverage its procurement network and market knowledge. The trading business can complement manufacturing operations by:

• Improving sourcing flexibility;

• Utilising supplier relationships; and

• Supporting captive consumption;

• Creating opportunities for third-party sales.

• Optimising inventory;

The Company should, however, maintain disciplined risk management in relation to inventory, foreign exchange, commodity prices and receivables.

Imported Coke from Singapore for captive consumption provides an additional source of supply.

The Company should continue to optimise:

• Quality;

• Procurement timing;

• Inventory; and

• Consumption per tonne;

• Freight;

• Supplier relationships.

The long-term competitiveness of Indias Ferro Alloys industry would benefit from:

• Rationalisation of power costs;

• Export facilitation;

• Improved renewable-energy access;

• Simplification of import procedures;

• Stable mining policies;

• Support for technology modernisation;

• Better availability of manganese ore;

• Green financing; and

• Efficient port and railway infrastructure;

• Support for decarbonisation initiatives.

Availability of competitively priced renewable energy and suitable mineral resources will be particularly important in improving Indias competitiveness against international producers.

Benefit Area	Expected Impact
Renewable energy	Lower dependence on conventional power
Power cost	Improved long-term cost competitiveness
Energy security	Reduced exposure to power-market volatility
Raw-material diversification	Reduced supply disruption risk
Manufacturing efficiency	Improved recovery and productivity
Carbon reduction	Better sustainability credentials
Export competitiveness	Improved positioning in carbon-conscious markets
Customer relationships	Greater potential for long-term supply arrangements
Working capital	Better procurement and inventory planning
Business resilience	Stronger ability to withstand commodity cycles

The Ferro Alloys industry remains strategically important to the global steel value chain and is expected to witness steady long-term growth supported by steel production, infrastructure development, automotive manufacturing, renewable- energy investment and industrialisation.

FY 2025-26 was marked by continued opportunities as well as significant challenges, particularly in relation to raw-material prices, electricity costs, international competition, logistics and environmental requirements.

India remains well positioned to benefit from the structural growth in steel demand. However, the competitiveness of Indian ferro alloy producers will increasingly depend on their ability to control power costs, secure quality raw materials, improve furnace efficiency, adopt technology and meet evolving carbon and sustainability expectations.

For the Company, the year under review was significant from the perspective of strengthening its energy strategy. The Companys 4.5 MWp captive solar plant, which achieved COD on 15 June 2024, remained operational throughout FY 202526 and contributed to the Companys renewable-energy initiative.

The Companys renewable-energy expansion subsequently accelerated with the commissioning of an additional 27 MWp in May 2026 and the planned completion of another 11 MWp by next year. Upon completion, the Companys solar portfolio is expected to reach approximately 42.5 MWp.

The Company also continues to strengthen its raw-material sourcing capabilities through procurement of Manganese Ore from multiple international origins including South Africa, France and Dubai/UAE, together with domestic sourcing. The Companys import of Coke from Singapore for captive consumption further supports its manufacturing operations.

The combination of diversified raw-material sourcing, manufacturing capability and increasing renewable-energy capacity is expected to strengthen the Companys resilience and competitiveness.

Going forward, the Companys strategic focus will remain on:

• Securing quality raw materials;

• Optimising landed procurement cost;

• Reducing specific energy consumption;

• Maximising renewable-energy utilisation;

• Improving furnace efficiency;

• Strengthening product quality;

• Expanding domestic and export markets;

• Managing commodity, foreign exchange and logistics risks;

• Strengthening carbon and ESG management; and

• Creating sustainable long-term value for all stakeholders.

The Company believes that the transition towards efficient, sustainable and lower-carbon ferro alloy production presents a significant opportunity for well-positioned Indian manufacturers. With continued investment in renewable energy, operational efficiency and supply-chain resilience, the Company is well placed to participate in the evolving growth opportunities of the Ferro Alloys industry during FY 2026-27 and beyond.