Jayaswal Neco Industries Ltd Management Discussions

Economic Overview

Global Economy¹

The global economy faces renewed tests as the war in the West Asia threatens to disrupt growth and disinflation. Over the past year, headwinds from higher trade barriers and elevated uncertainty have been offset by tailwinds from technology-related investment; accommodative financial conditions, including a weaker US Dollar; and fiscal and monetary policy support. The Middle East conflict presents a significant counter force to these tailwinds through its impact on commodity markets, inflation expectations, and financial conditions.

Assuming that the conflict remains limited in duration and scope, global growth is projected to moderate to 3.1% in 2026 and 3.2% in 2027 compared to 3.4% in 2025.

Global headline inflation is expected to rise modestly to 4.4% in 2026 before resuming its downward trajectory in 2027. Further, the adverse impact is likely to be significantly more pronounced for emerging market and developing economies.

Economic Impact of the War

The ultimate economic impact will depend on the conflicts duration and scale and how quickly energy production and shipment normalise once hostilities end.

This impact will depend on three primary channels.

• Firstly, higher commodity prices are a classic negative supply shock, raising costs for energy intensive goods and services, disrupting supply chains, lifting headline inflation and reducing purchasing power.

• Secondly, these effects could be amplified as firms and workers try to recoup losses, through higher wages and prices.

• Thirdly, heightened macro risks and the prospect of tighter monetary policy could trigger a sudden repricing by financial markets—with much lower asset valuations, higher risk premia, more capital flight, and dollar appreciation—tightening financial conditions and dampening aggregate demand.

Countries will feel the impact differently. As in past commodity-price surges, importers are highly exposed. Low-income and developing economies, especially those with vulnerabilities and limited buffers are likely to be hit hardest. Gulf energy exporters will face economic fallout from damaged infrastructure, production disruptions, export constraints, and weaker tourism and business activity. Remittances will fall in countries that supply migrant workers to the region.

The global economy is once again facing a significant test. Although the world may continue to evolve towards a more multipolar economic order, it need not become increasingly fragmented. Stronger international cooperation, prudent macroeconomic policies, a swift cessation of hostilities, and the reopening of the Strait of Hormuz would help mitigate the economic fallout and support a more stable global recovery.

OUTLOOK

3Downside risks dominate the outlook. A longer or broader conflict, worsening geopolitical fragmentation, a reassessment of expectations surrounding AI-driven productivity, or renewed trade tensions could significantly weaken growth and destabilise financial markets.

Elevated public debt and eroding institutional credibility further heighten vulnerabilities. At the same time, activity could be lifted if productivity gains from AI materialise more rapidly or trade tensions ease on a sustained basis.

4The war and its direct implications are capturing everyones immediate attention, but recent developments in artificial intelligence, most recently with the arrival of agentic AI, raise the prospect of very meaningful productivity gains, the ultimate driver of standards of living. Yet the transition could be challenging. The financial markets enthusiasm for these technologies may well have run ahead of fundamentals, raising concerns about potential price correction.

Moreover, a rapid technological transformation could render many jobs obsolete, potentially slowing aggregate demand. Policymakers should adopt policies that encourage diffusion and adoption of these new technologies while ensuring adequate investments in skills to help facilitate a smoother labour market transition. Faster adoption of renewable energy can strengthen resilience to energy shocks, improve energy security and support the climate transition.

5AI-related spending is the dominant force in the current investment cycle and critical to the resilient United States growth outlook. Business spending in the US Should rise 7% in the fourth quarter from a year earlier and 8% in 2027 overall. Companies spending on data centre infrastructure currently exceeds investor expectations. This dynamic is consistent with an early- stage investment cycle in which scaling capacity is more important than optimising it.

Indian Economy

6Indias economy maintained a strong growth trajectory during FY 2025-26, with real Gross Domestic Product (GDP) estimated to grow by 7.7%, compared witRs. 7.1% in FY 2024-25. Real GDP at constant (2025-26) prices is estimated at H323.12 lakh crore, while nominal GDP at current prices is estimated at H346.36 lakh crore, registering a growth of 8.9% over the previous year.

Real Gross Value Added (GVA) is estimated to have grown by 7.9% during FY 2025-26, reaching H294.91 lakh crore, compared with H273.36 lakh crore in FY 2024-25.

The economys performance during the year was supported by broad-based growth across the secondary and tertiary sectors, which recorded real GVA growth of

8.8% and 9.3%, respectively. The primary sector registered a growth of 3.2%, mainly driven by the performance of the agriculture and fisheries sectors.

Among the major sectors, manufacturing; trade, repair, hotels, transport, communication and services related to broadcasting and storage; and financial, real estate and professional services recorded double-digit growth at both constant and current prices during FY 2025-26.

On the expenditure side, robust growth in Private Final Consumption Expenditure (PFCE) and Gross Fixed Capital Formation (GFCF) underscored the continued strength of domestic consumption and investment, reinforcing Indias position as one of the fastest-growing major economies globally.

Macro Implications of West Asia Conflict

7The Indian economy has navigated a series of domestic and global disruptions during the current decade, with the conflict in West Asia emerging as the latest macroeconomic challenge. Unlike the COVID-19 pandemic which had simultaneously impacted demand and disrupted supply over an extended period, the West Asia conflict has primarily manifested as a supply-side shock due to increasing global energy prices and input costs, while domestic demand has remained relatively resilient.

However, if the supply shock persists, higher energy and commodity prices could translate into elevated inflation, tighter corporate margins, weaker household purchasing power, and lower business investment, thereby increasing the risk of slower economic growth accompanied by persistent inflationary pressures.

Government security (G-sec) yields have spiked in response to global uncertainty as well as risks of fiscal slippage, in contrast with the situation seen during the pandemic when ultra-low rates had supported weak demand. Notably, the most significant difference in the macroeconomic impacts of the West Asia conflict and the pandemic would be visible on the Balance of Payments (BoP) front, with the current account deficit (CAD) expected to surge to a four-year high of 1.7% of GDP, in contrast to the surplus of 0.9% of GDP seen during the pandemic in FY 2020-21.

8The global oil price uncertainty index has jumped to the highest-level following concerns around the West Asia conflict. The prices of Brent crude oil and LNG have increased by 55% and 90%, respectively, since the beginning of the conflict.

9Further, India is dependent on imports to meet about 88% of its total oil requirement and 51% of its gas requirement. India has diversified its crude oil import sources, but West Asian countries still account for about 51% of total petroleum crude and product imports. Over the past five years, India has expanded its supply from the US and Russia.

High Frequency Indicators

10GST collections continued to strengthen during FY 2025-26, reflecting resilient economic activity, higher consumption and trade, an expanding taxpayer base, stronger digital reporting systems and improved compliance. Gross GST collections reached approximately H22.27 lakh crore during the year, underscoring the continued buoyancy of indirect tax revenues. The number of registered GST taxpayers increased from 66.5 lakh in 2017 to 1.65 crore as of May 2026, highlighting the growing formalisation of the Indian economy and the increasing effectiveness of the GST framework.

OUTLOOK

12Indias economic outlook for FY 2026-27 remains resilient despite elevated global uncertainties arising from geopolitical tensions, trade fragmentation, volatile energy prices and global financial market volatility. RBI has projected Indias GDP growth at 6.9% for FY 2026-27, supported by strong domestic demand, sustained public capital expenditure and improving private investment.

Inflation has remained broadly under control under the flexible inflation targeting framework, with headline inflation remaining below the 4% target in the recent period. RBI has projected average CPI inflation of 4.6% for FY 2026-27.

Continued government emphasis on infrastructure creation and capital expenditure is expected to support investment activity across core sectors, including steel, engineering and construction. Improved corporate balance sheets, rising productive capacity and sustained public investments are expected to aid demand momentum across infrastructure-linked industries.

On the external front, foreign exchange reserves remain at comfortable levels, providing adequate import cover, while gross FDI inflows continue to remain encouraging, supported by increasing greenfield investments across finance and technology sectors.

Going forward, continued policy certainty, fiscal consolidation, structural reforms, ease of doing business and focus on inclusive growth are expected to support

Indias medium-term growth trajectory despite ongoing external challenges.

13ICRA has lowered its FY 2026-27 GDP growth forecast to 6.5% from 7.1% and raised its CPI inflation projection to 4.5% from 4.0%, assuming an average crude oil price of US $85/barrel for the fiscal. However, these estimates are subject to sizeable risks; a longer conflict with average crude oil at US $105/bbl could drag growth below 6% and push inflation above 5%.

14The International Monetary Fund (IMF) has raised Indias growth forecast for FY 2026-27 to 6.5% from earlier 6.4%, as a sharp cut in US tariffs on Indian goods and a strong FY 2025-26 growth momentum is expected to offset the drag from the West Asian conflict.

The IMF positions India as one of the few resilient economies in a global outlook that is increasingly shadowed by the conflict in West Asia.

A reduction in US tariffs on Indian goods, from 50% to 10%, has meaningfully improved the trade outlook, and the ‘carry-over momentum from a strong FY 2025-26 is expected to sustain activity into the next fiscal year. These positives, the IMF notes, are sufficient to offset the adverse spillovers from the ongoing war in West Asia.

Industry Overview

Global Steel Performance and Outlook

15According to the World Steel Association, Global crude steel production eased marginally by 2% YoY to 1.85 billion tonnes in CY 2025. China remained the worlds largest crude steel producer with output of 960.8 million tonnes, followed by India at 164.9 million tonnes, the USA at 81.9 million tonnes, and Japan at 80.7 million tonnes.

Country	2025		2024
	Rank	Tonnage	Rank	Tonnage
China	1	960.8	1	1005.1
India	2	164.9	2	149.4
United States	3	81.9	4	79.5
Japan	4	80.7	3	84.0
Russia	5	67.9	5	71.0
South Korea	6	62.2	6	63.6
Turkiye	7	38.1	8	36.9
Germany	8	34.1	7	37.3
Brazil	9	33.4	9	33.9
Iran	10	32.0	10	31.4

16The global steel market size was estimated at US$ 1.49 trillion in 2025 and is projected to reach US$ 2.28 trillion by 2033, at a CAGR of 5.9% from 2026 to 2033.

The global steel market is anticipated to be driven by rising investments in construction and infrastructure activities with requirement of massive amount of steel. The Asia Pacific area dominated the steel market with the largest market revenue share of over 64.6%% in 2025.

The global steel market is witnessing transformative trends and drivers that significantly shape its future. A major trend is the focus on sustainability, as steel manufacturers increasingly invest in green technologies to minimise carbon emissions. This includes the adoption of electric arc furnaces and development of low-carbon steel production methods to align with environmental standards and consumer preferences for eco-friendly products. Digital transformation is also becoming prevalent, with the industry leveraging IoT, AI and data analytics to enhance operational efficiency and streamline manufacturing processes.

The automobile industrys growth, especially with the rise of electric vehicles, is also a significant factor, as evidenced by the International Energy Agencys forecast of over 17 million electric car sales in 2024. Moreover, urbanisation trends are increasing demand for residential and commercial buildings; the UN estimates that by 2050, 68% of the global population will reside in urban areas, necessitating substantial use of steel in construction.

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Building and construction segment held the largest market share of 79.0% in 2025. The automotive and aerospace sectors are key growth engines for advanced steel demand. Automotive growth is driven by electric vehicle production and lightweight, high-strength steels for safety and efficiency. Aerospace expansion, fuelled by rising air travel and aircraft output, relies on specialised steel alloys for critical, high-stress components. Together, sustained innovation in both mobility sectors ensures steel remains a vital, evolving material.

OUTLOOK

18According to the World Steel Associations Short-Range Outlook (April 2026), global steel demand is expected to enter a phase of modest growth following a prolonged period of structural adjustment that has weighed on demand since 2022. Global finished steel demand is forecast to increase by 0.3% in CY 2026 to 1.72 billion tonnes, followed by an acceleration in growth to 2.2% in CY 2027, reaching 1.76 billion tonnes. The latest outlook validates the trajectory established in the October 2025 Short Range Outlook, indicating that global steel demand has likely bottomed out over the 2025-2026 period and is now transitioning towards a path of modest growth in 2026, with more pronounced acceleration projected for 2027.

The recovery is expected to be driven by distinct shifts in regional demand dynamics. In China, the pace of steel demand contraction is forecast to moderate in CY 2026 as the correction in the housing market approaches its trough. Infrastructure investment is expected to provide support through continued government spending, while manufacturing demand is expected to remain relatively resilient despite a more challenging global trade environment. Steel demand in China is projected to contract by 1.5% in CY 2026 before remaining broadly stable in CY 2027 as the structural realignment of the property market progresses.

Demand growth across major developing markets is expected to remain resilient, with India continuing to be the worlds fastest-growing major steel market. Indian steel demand is projected to expand by 7.4% in CY 2026 and accelerate further to 9.2% in CY 2027, supported by sustained infrastructure investment, manufacturing growth, a resilient capital expenditure cycle and continued strength across key steel-consuming sectors.

The outlook also anticipates a meaningful turnaround across developed economies following an extended period of weakness. Steel demand in the European Union, the United States, Canada, Japan and South Korea are expected to continue their recovery througRs. 2027, contributing to a broader-based improvement in global steel demand. Consequently, steel demand excluding China is forecast to accelerate to 4.0% growth in CY 2027, a pace rarely witnessed in recent years.

Despite the improving outlook, geopolitical uncertainties continue to pose significant downside risks. The ongoing conflict in the Middle East poses downside risks to regional steel demand during CY 2026, while any prolonged escalation beyond current assumptions could necessitate downward revisions to the outlook, particularly for regions with high structural energy sensitivity.

Country	2025		2026		2027
China	796.0	(-7.1%)	784.1	(-1.5%)	784.1	(0.0%)
India	159.8	(8.0%)	171.6	(7.4%)	187.4	(9.2%)
United States	90.9	(2.0%)	92.4	(1.7%)	94.3	(2.0%)
Japan	48.0	(-3.4%)	47.9	(-0.1%)	48.7	(1.7%)
South Korea	43.6	(-8.8%)	43.7	(0.3%)	44.2	(1.1%)
Turkiye	39.3	(2.6%)	41.2	(5.0%)	41.2	(0.0%)
Russia	37.6	(-14.0%)	37.2	(-1.0%)	37.6	(1.0%)
Germany	29.2	(10.3%)	30.7	(5.1%)	32.5	(6.0%)
Vietnam	28.8	(12.0%)	29.4	(2. 0%)	29.9	(2.0%)
Brazil	26.8	(2.6%)	27.0	(1.0%)	27.7	(2.5%)

Indian Steel Industry: Strong Growth,

Rising Self-reliance and a Sustainable Future

19lndias steel sector is a key ‘sunrise sector with strong and steady growth and is the backbone of Indias growth story. It became the worlds second-largest steel producer ¦ in 2018 and has retained this position, strengthening its role in the global steel landscape. The sector continues to benefit from robust domestic demand, supportive government policies, expanding manufacturing activity and significant capacity additions.

India: Worlds 2^nd-largest Crude Steel Producer since 2018

Share in global crude steel production

Strong Operational Performance in

20FY 2025-26 marked a record year for the Indian steel industry, with both production and consumption reaching all-time highs. Crude steel production increased by over 10.7% YoY to approximately 168.4 million tonnes, reflecting sustained industrial momentum and strong underlying demand. Simultaneously, finished steel consumption rose to around 164 million tonnes, registering growth of nearly 7-8%, driven by increased activity across infrastructure, construction, railways, manufacturing and urban development projects.

The industrys expansion has been supported by continuous investments in capacity enhancement. Indias steel-making capacity reached approximately 220 million tonnes during FY 2025-26, with both public and private sector players actively investing in expansion projects, technology upgrades, and value-added steel production.

21Cumulative production and consumption of steel during the last five financial years and the current year are given in the following table and graph below:

Production and Consumption (in Million Tonnes)

Category	2021-22	2022-23	2023-24	2024-25	2025-26	2026-27* (Apr-July)
Crude Steel Production	120.29	127.20	144.30	152.18	170.15	56.33
Finished Steel Production	113.60	123.20	139.15	146.69	162.47	54.28
Finished Steel Consumption	105.75	119.89	136.29	152.13	164.36	55.95

Consumption Growth Reflects Indias Development Story

22Indias steel consumption has more than doubled over the past 12 years, increasing from 77 million tonnes in FY 2014-15 to nearly 164 million tonnes in FY 2025-26. This remarkable growth mirrors the countrys rapid infrastructure development, accelerating urbanisation, expanding manufacturing base and rising domestic economic activity.

21Despite this strong growth trajectory, India continues to have significant headroom for future demand expansion. Per capita finished steel consumption stands at approximately 116 kg, substantially lower than the global average of 209 kg and significantly below Chinas 562.1 kg. This gap highlights the immense long-term growth potential for the domestic steel industry as India continues its infrastructure and industrial transformation.

22Capacity Expansion and the Atmanirbhar Bharat Vision

Aligned with the vision of Atmanirbhar Bharat and Viksit Bharat 2047, India is actively working to strengthen domestic manufacturing capabilities and reduce dependence on imports. A robust domestic steel ecosystem is expected to create new business opportunities, support industrial growth, and underpin the countrys infrastructure ambitions.

The government has set an ambitious target of achieving 500 million tonnes of steel production capacity by 2047.

To support this objective, policy initiatives have focused on improving raw material security, reducing production costs, enhancing logistics infrastructure and promoting domestic manufacturing. These efforts are gradually strengthening Indias position as a globally competitive and self-reliant steel producer.

Specialty Steel: Moving Up the Value Chain

A key component of Indias steel strategy is the development of specialty steel manufacturing. Under the Production Linked Incentive (PLI) Scheme for Specialty Steel, investments of H23,022 crore have already been realised, resulting in approximately 2.4 million tonnes of specialty steel production and the creation of more than 13,000 direct jobs.

The initiative is helping domestic producers move up the value chain, reduce import dependence in high-grade steel products, improve export competitiveness, and strengthen Indias manufacturing ecosystem. The scheme is expected to play a pivotal role in enhancing Indias capabilities in advanced and value-added steel products.

Improving Trade Dynamics and Global Competitiveness

20Indias steel trade performance improved significantly during FY 2025-26. Finished steel exports surged by nearly 36% to around 6.6 million tonnes, while imports declined sharply by approximately 32%. The improvement enabled India to regain its position as a net exporter of steel, reflecting enhanced domestic competitiveness and greater self-sufficiency.

22Indias finished steel exports increased by 29.1% YoY in March 2026, while imports declined sharply by 9.5%.

Sustainability and the Transition to Green Steel

The growth of Indias steel industry is increasingly being shaped by sustainability and decarbonisation initiatives. As part of its commitment to achieving net-zero emission intensity by 2070, India has emerged as a global leader in green steel policy.

In 2024, India became the first country to introduce an official Green Steel Taxonomy, defining green steel based on carbon emission intensity. Steel produced with emissions below 2.2 tonnes of CO₂ equivalent per tonne of finished steel qualifies under the framework. As of March

2026, 89 steel units had received Green Steel certification, covering a production volume of approximately 12.34 million tonnes.

The governments decarbonisation roadmap includes greater adoption of renewable energy, increased scrap utilisation, deployment of green hydrogen technologies, carbon capture initiatives, and investments in research and development. These measures are expected to significantly reduce the sectors carbon footprint while maintaining competitiveness.

OUTLOOK

Indias steel industry is rapidly strengthening its capacity, competitiveness and self-reliance.

23Looking ahead, the Indian steel industry is expected to maintain its growth momentum, with production projected to rise further and demand remaining robust. However, the sector will need to navigate challenges related to energy security, input costs, and global market volatility.

24Government reforms in raw material security, logistics, quality control, and PLI incentives are driving higher production and reduced import dependence. Rising exports and expanding specialty steel output are further reinforcing Indias global position. With clear pathways for green steel and decarbonisation, the industry is aligning with long-term sustainability goals. Together, these steps are building a resilient, future-ready steel

ecosystem that is well-positioned to remain a key pillar of Indias industrial and economic development.

25India maintains its position as the worlds fastest- growing major steel market, with demand projected to expand by 7.4% in 2026 and accelerate to 9.2% in 2027.

This robust outlook is underpinned by broad-based strength across all key steel-consuming sectors. Growth is primarily driven by sustained, infrastructure-led construction and a thriving automotive sector fuelled by increasing freight demand.

Furthermore, a resilient capital expenditure cycle continues to bolster demand for capital goods, while nationwide rail network expansion and an affordability- driven surge in consumer durables provide additional structural tailwinds.

Indian Steel Demand and Market Dynamics

26Indias steel demand is expected to remain on a healthy growth trajectory, supported by sustained infrastructure development and continued policy focus on capital expenditure. According to ICRA, domestic steel demand grew by around 7.6% in FY 2025-26, reflecting relatively moderate growth amid slower execution of government capital expenditure during the year. Looking ahead, demand growth is projected to strengthen to 9-10% in FY 2026-27, driven by a significant increase in government budgetary allocations towards steel-intensive sectors such as roads, railways and infrastructure.

Domestic HRC prices remained volatile during FY 2025-26. Prices declined sharply during the latter part of 2025 due to excess supply conditions before recovering from January 2026, supported by the reintroduction of safeguard duties and higher coking coal costs. With domestic prices approaching import parity, steel prices are expected to remain broadly range-bound in the near-term.

Trade dynamics also improved during the year. Following the imposition of safeguard duties on select imports, finished steel imports declined significantly, while exports witnessed a gradual recovery. However, export growth continued to face headwinds from international trade protectionism, including the Carbon Border Adjustment Mechanism (CBAM), and intense competition from Chinese steel producers.

Globally, persistent weakness in Chinas property sector and subdued industrial and construction activity continued to weigh on steel demand, resulting in elevated export volumes and keeping international steel prices under pressure. Continued structural oversupply in China is expected to moderate global steel prices over the near term.

Despite moderating earnings from the cyclical highs witnessed in FY 2021-22, domestic steel producers continue to pursue capacity expansion to capitalise on Indias long-term demand potential. At the same time, the industrys financial position remains significantly stronger than previous investment cycles, with substantially lower debt levels relative to installed capacity, enhancing its resilience against cyclical market conditions.

Industry operating margins are expected to remain broadly stable during FY 2025-26 amid steel price volatility. Looking ahead, margins are expected to improve modestly in FY 2026-27, supported by safeguard duties that provide price support, although elevated coking coal costs are likely to continue exerting pressure on input costs. Any improvement in profitability is expected to support a gradual strengthening of industry leverage metrics.

Steel Demand Drivers - Infrastructure Sector

^Infrastructure continues to serve as one of the principal drivers of Indias economic growth and social development, creating opportunities for industry, employment, and improved quality of life. Over the past decade, India has consistently prioritised large-scale investment in infrastructure as a driver of inclusive progress and competitiveness, with the World Bank ranking it among the top five countries worldwide for job creation in infrastructure among low and middle-income economies.

The Union Budget 2026-27 continues this momentum, announcing new measures to strengthen financing instruments, expand public capital expenditure, and support risk mitigation and asset monetisation. These initiatives reflect the vision of Viksit Bharat, where modern infrastructure serves as its foundation.

Over the past decade, public capital expenditure has been the driving force of Indias infrastructure push. The Government has steadily raised allocations, using higher spending as a tool to attract private investment, generate employment and boost the economy.

Rising Capex Levels

Public investment has seen a sharp rise, growing from H2 lakh crore in FY 2014-15 to a Budget Estimate of H12.2 lakh crore in FY 2026-27, continuing its upward trajectory and underscoring the governments commitment to infrastructure growth.

Focus on Tier II and Tier III Cities

The Union Budget 2026-27 places emphasis on developing cities with populations above 5 lakh, positioning them as new growth centres. Investments in housing, transport, and urban infrastructure aim to spread growth beyond metropolitan areas, ensuring balanced regional development.

Further to amplify the potential of urban centres, the Union Budget 2026-27 introduced the concept of City Economic Regions (CERs), mapped according to their specific growth drivers. An allocation of H5,000 crore per CER over five years has been proposed, to be implemented through a challenge mode with a reform-and-results-based financing mechanism.

As a transformatory push, Indias infrastructure financing has undergone a major change over the past decade, shifting from reliance on budgetary support to a blended model of public and private capital. According to the World Bank, India has emerged as the largest recipient of Private Participation in Infrastructure (PPI) investment in South Asia, accounting for over 90% of the regions total. Institutions like the National Investment and Infrastructure Fund (NIIF) and the National Bank for Financing Infrastructure and Development (NaBFID) have emerged as pivotal anchors, mobilising global and domestic capital and providing long-term development finance to strengthen Indias infrastructure ecosystem. Alongside these institutions, instruments such as Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) have enabled monetisation of completed assets and recycling of funds into new projects.

^Infrastructure at the Core of Indias Development

Indias infrastructure development continued to maintain strong momentum through sustained investments across roads, railways, airports, metro systems, ports, waterways and logistics. Integrated planning initiatives such as PM GatiShakti, the National Logistics Policy, Sagarmala and UDAN have strengthened multimodal connectivity, improved logistics efficiency and enhanced economic integration across regions. Public capital expenditure increased from about H2 lakh crore in FY 2014-15 to H12.2 lakh crore in FY2026-27, reflecting the continued focus on long-term infrastructure creation across sectors.

Roads and Highways

Indias road infrastructure expanded significantly over the past decade, strengthening connectivity across regions and economic corridors. At 63.73 lakh km, India has the second-largest road network in the world. The length of National Highways increased by about 61%, from 91,287 km in FY 2013-14 to 1,46,572 km in March 2026, while the length of four-lane and above National Highways expanded from 18,371 km to 45,516 km during the same period. Further, 3,644 km of access-controlled high-speed corridors and expressways have been operationalised across the country. Infrastructure development has

focused on high-speed corridor development, economic node connectivity and urban decongestion through policies supporting highways, roads and bypasses.

Pradhan Mantri Gram Sadak Yojana (PMGSY) has strengthened rural connectivity through all-weather roads, improving access to markets, education, healthcare and economic opportunities. Budgetary allocation under the programme increased from H386 crore in F Y2014-15 to H19,000 crore in FY 2026-27. As of March 2026, 99.6% of eligible habitations have been connected, while completed roads increased to 4.11 lakh km during 2014-2026, witRs. 10,293 bridges completed under the programme. Bharatmala Pariyojana has also strengthened freight corridors and regional connectivity, witRs. 22,590 km of roads completed as of 31 March, 2026.

Railways

Indian Railways has undergone a significant transformation since 2014, enhancing capacity, efficiency, safety and passenger services. Budgetary support increased from about H32,000 crore in FY 2014-15 to H2.78 lakh crore in FY 2026-27. Rail electrification has progressed rapidly, increasing from about 20% of the network before 2014 to 99.6% by March 2026, witRs. 69,873 route kilometres electrified.

Modernisation of passenger services continued with the expansion of Vande Bharat trains, witRs. 162 train services operational as of April 2026. The Vande Bharat Sleeper, launched in January 2026, carried 1.21 lakh passengers across 119 trips during its first three months, while 60 Amrit Bharat Express services are operational to improve affordable long-distance connectivity. India is also advancing the Mumbai-Ahmedabad High-Speed Rail Corridor, with the Union Budget 2026-27 announcing plans for seven additional high-speed rail corridors.

Infrastructure modernisation continued under the Amrit Bharat Station Scheme, with redevelopment completed at 208 stations out of 1,338 identified stations. Rail safety has also improved through the deployment of Kavach, Indias indigenous automatic train protection system, across 3,103 route km, while implementation is underway on 24,427 route km. Consequently, train accidents declined from 135 in FY 2014-15 to 16 in FY 2025-26. Freight movement has also strengthened under the PM GatiShakti framework through operationalisation of multimodal cargo terminals and improved logistics integration.

Civil Aviation

Indias civil aviation sector has expanded significantly, improving regional air connectivity and airport infrastructure. Operational airports increased from 74 in 2014 to 165 in 2026, supported by investments exceeding H1.4 lakh crore. The UDAN scheme has expanded affordable regional air connectivity, witRs. 665 routes connecting 95 airports, heliports and water aerodromes, benefiting more than 1.64 crore passengers. The Modified UDAN Scheme, launched in 2026 with an outlay of H28,840 crore, aims to connect 120 additional destinations.

Airport infrastructure has expanded througRs. 25 approved greenfield airports after 2014, while digital initiatives such as Digi Yatra are operational at 38 airports, benefiting more than 9.3 crore passengers. Operationalisation of GAGAN, the worlds first equatorial Satellite-Based Augmentation System (SBAS), has further strengthened navigation accuracy and aviation safety.

Metro Rail

Urban mass transit infrastructure has expanded considerably, with the operational metro network increasing from 248 km in 2014 to more than 1,155 km in 2026. India now has the worlds third-largest metro network, while the number of cities connected by metro rail has increased from five in 2014 to 26 cities in 2025. Daily metro ridership has also increased from about 28 lakh passengers to more than 1.15 crore passengers.

The pace of metro commissioning has accelerated from 0.68 km per month before 2014 to nearly 6 km per month. Annual budgetary support increased from about H5,798 crore in FY 2013-14 to nearly H29,550 crore in FY 2025-26, while nearly H3.7 lakh crore has been invested in metro expansion over the past twelve years. The Metro Rail Policy, 2017 has strengthened integrated urban mobility planning, supported by indigenous manufacturing under the Make in India initiative.

Ports, Shipping and Inland Waterways

Indias maritime infrastructure has strengthened significantly, supporting trade, logistics efficiency and multimodal connectivity. Maritime transport currently handles about 95% by volume and around 70% by value. Major port capacity nearly doubled from 873 MMTPA in 2014 to 1,726 MMTPA in 2026, while cargo handled increased from 581 MMT to 915 MMT. Average vessel turnaround time also improved from 94 hours to 48.8 hours, reflecting higher operational efficiency.

The Sagarmala Programme has supported port-led development through modernisation of infrastructure, last-mile connectivity and coastal economic zones, witRs. 78 projects worth H5,356.75 crore completed as of March 2026. Indian-flagged ships increased from 1,250 in 2014 to 1,593 in 2026, while coastal shipping cargo rose from 74 MMT to 215.29 MMT. The number of seafarers also increased from 1.27 lakh to 3.20 lakh.

India has also expanded its inland water transport network, with National Waterways increasing from 5 in 2014 to 111 in 2026, spanning 20,187 km across 23 States and 4 Union Territories. As of March 2026, 32 waterways are operational, while cargo movement through inland waterways increased from 29 MMT to 218 MMT. Ferry and Ro-Pax passenger movement reached 10.55 crore, reflecting growing adoption of inland waterways as an efficient and sustainable mode of transport.

Logistics

Indias logistics ecosystem has continued to strengthen through integrated infrastructure planning, digitalisation and multimodal connectivity. The PM GatiShakti National Master Plan has improved coordination across 58 Ministries and Departments through a GIS-based platform with more than 3,202 data layers as of June 2026, enhancing project planning and s, last-mile connectivity.

The National Logistics Policy has focused on improving logistics efficiency and reducing supply chain costs, supported by digital platforms such as the Unified Logistics Interface Platform (ULIP), Logistics Data Bank and NETC FASTag. Indias ranking in the World Bank Logistics Performance Index improved from 54 in 2014 to 38 in 2023, with the objective of reaching the top 25 by 2030. ULIP recorded over 100 crore API transactions by March 2025, while more than 11.86 crore FASTags had been issued as of December 2025, enabling seamless freight movement across the national highway network.

Steel Demand Drivers - Automotive Sector

Global Automotive Industry

29Global automotive industry is being reshaped by technological change, geopolitical pressures and diverging public policies. The industry remains resilient,

but the environment has become far more demanding. Manufacturers are managing slower growth in some markets, fiercer competition in others, and continued uncertainty linked to trade tensions, supply chains, affordability, energy prices and the pace of electrification.

The Automotive sector globally is also investing massively in cleaner technologies, digital innovation and safety, while adapting to highly diverse consumer expectations and regulatory pathways across regions.

In 2025, global automobile production of passenger vehicles, trucks and buses, rose from 92.7 million units in 2024, to 96.4 million units in 2025, with an increase of 3.9%, while global vehicle sales increased, from 95.3 million units in 2024, to 99.8 million units in 2025, posting a growth of 4.7%.

While some regions witnessed growth, others declined. Production in Asia-Oceania grew by 7.6%, while Europe and the Americas declined by (-) 0.8% and (-) 2.1%, respectively, in 2025, compared to 2024. Production in Africa was broadly stable with slight decline of (-) 0.3%.

Indian Automotive Industry

30FY 2025-26 started modestly for the Indian auto industry but has closed on a high note with every vehicle category - Passenger Vehicles, Commercial Vehicles, Three- Wheelers and Two-Wheelers, together posting their highest-ever sales in a financial year, after seven years.

The strong contributors to this growth have been the positive sentiments created through GST 2.0 reforms and multiple Repo Rate cuts during the year.

Production: Total production of Passenger Vehicles, Commercial Vehicles, Three-Wheelers, Two-Wheelers and Quadricycle in April 2025 - March 2026 was 3,47,08,984 units.

Domestic Sales

a) Passenger vehicles

• The Passenger Vehicle segment clocked its highest-ever sales of 46.43 lakh units in

FY 2025-26, posting a growth of 7.9%, as compared to the previous financial year.

• This robust performance was supported by improved affordability following the GST rate reduction, enhanced purchasing power from personal income tax relief and lower financing costs due to successive repo rate cuts by RBI. Therefore, H2 of FY 2025-26 posted a robust growth of 16.7% compared to FY 2024-25, whereas there was a 1.4% de-growth in H1 in FY 2025-26, compared

to previous H1. Further, increase in registration of electric Passenger Vehicles by more than 80% in FY 2025-26, compared to previous years, also propelled this growth.

• The segment saw their highest ever exports of 9.05 lakh units in FY 2025-26, registering a growth of 17.5% over FY 2024-25. The demand has been steady across most markets including in the Middle East, Africa and Latin America last year.

b) Two-wheelers

• For FY 2025-26 period, the Two-Wheeler segment posted the highest ever sales of 2.17 crore units, with a growth of 10.7%, crossing the previous peak achieved in FY2018-19.

• The implementation of GST 2.0 has spurred growth in both Q3 and Q4 for 2025-26. While H1 growth was flat at sub 1%, H2 posted growth of about 21.5% compared to previous H2. In addition, EV offtake also increased in March, driven by anticipation of rising fuel prices.

• Complementing these structural reforms, supportive macroeconomic measures, including multiple repo-rate reductions and income tax relief in

FY 2025-26 provided the necessary impetus, further strengthening consumer demand.

• While growth has been observed across both urban and rural markets, the current trend has been led primarily by urban demand.

• Two-Wheelers also recorded their highest-ever exports in a financial year witRs. 51.8 lakh units in

FY 2025-26 with a growth of 23.4% over FY 2024-25. Wider product range and recognition of Indian Twowheeler brands and its robust quality is increasing its acceptance globally. Further, the depreciated value of Rupee is also helping the exports volumes.

c) Three-wheelers

• Three-Wheelers also posted their highest ever sales in FY 2025-26 of 8.36 lakh units, registering a growth of 12.8%, as compared to FY 2024-25.

• Performance of the Three-Wheeler segment is driven by increased economic activity, rising movement of people and goods, strengthening personal and commercial mobility needs for meeting the transportation needs in urban and semi urban areas.

• Demand has been further aided by the expansion of electric autorickshaws. In addition, the issuance of new permits for ICE three-wheelers by select state governments has also contributed positively to overall growth.

• Exports of Three-Wheelers grew by 50.1% in FY 2025-26, compared to last year, with exports of around 4.61 lakh units. Increased exports to Sri Lanka and African nations have contributed to this growth.

d) Commercial Vehicles

• This segment also posted its highest-ever sales in FY 2025-26 witRs. 10.80 lakh units, with a growth of 12.6%, compared to FY 2024-25.

• The rollout of GST 2.0 reforms provided a strong impetus to domestic CV sales, with consumption demand driving new vehicle purchases by fleet operators. Additionally, the RBIs repo-rate cuts have significantly lowered the Total Cost of Ownership, easing financing for consumers and strengthening overall market sentiment. Increased Capital Expenditure has further spurred economic activity in the country, providing a boost to the Commercial Vehicle segment.

• 0.95 lakh units of Commercial Vehicles were exported in FY 2025-26 with a growth of 17.4% over FY 2024-25. Neighbouring countries and the Middle East have been steady markets for Commercial Vehicles.

31Commercial Vehicles (CVs) are broadly categorised into light commercial vehicles (LCVs) and medium and heavy commercial vehicles (MHCVs), with buses forming a subsegment within each. The domestic market drives around 92% of the overall volume, with exports accounting for the remainder.

Within LCVs, vehicles above 2 tonne gross vehicle weight (GVW) now account for ~73%, up from 60% in fiscal 2020 (refer chart in annexure), as fleet operators increasingly prioritise payload efficiency over unit addition. For MHCVs, the completion of both dedicated freight corridors¹ (DFC) introduces competition from a viable rail alternative for long-haul freight.

The bus segment is expected to grow 3-4% in FY 2026-27, supported by replacement demand and government-led electric bus procurement. Although buses remain a small sub-segment, electrification in this category is expected to progress faster than in any other CV category, with penetration still in low single digits but rising steadily.

32Even for Indian auto retail, FY 2025-26 has been a landmark year - delivering an all-time high of ~2.97 crore units with a broad-based 13.30% YoY growth that saw five of six vehicle categories set new annual records. This is no" just a number, it represents the industry approaching the 3-crore mark, a milestone that would have seemed distant just two years ago.

What makes this year particularly significant is that the growth was structurally sound, underpinned by improving affordability, widening mobility demand across urban and rural India, and a diversifying powertrain mix.

A key inflection point came in September with the implementation of GST 2.0, which improved affordability across several mass-market vehicle categories. Combined with festive demand during Navratri and Diwali in October, this helped drive an all-time record monthly retail of over 40 lakh units. The momentum continued through the remainder of the year, with January, February and March 2026 each recording strong double-digit YoY growth, indicating that the recovery had broadened beyond seasonal factors.

Category-wise, Two-Wheelers reclaimed their pre- COVID peak, retailing over 2.14 crore units and growing 13.40% supported by stronger rural demand, improving affordability and a wider product portfolio catering to both entry-level and aspirational segments. Passenger Vehicles crossed the 47-lakh mark for the first time, growing 13.00%, driven by a strong new-model pipeline, steady urbanisation, and the sustained shift towards SUVs. Tractors emerged as the standout performer, crossing 10 lakh retail units for the first time in history witRs. 18.95% growth, reflecting an excellent monsoon, robust rabi sowing and improving farm incomes. Commercial Vehicles also achieved a record year, crossing the 10-lakh mark for the first time witRs. 11.74% growth, supported by infrastructure-led freight demand and strength in the medium and heavy commercial vehicle segment. Three-Wheelers registered their third consecutive annual record at 11.68% growth.

Alternative fuel adoption continued to strengthen during the year. EV penetration improved across major vehicle categories, while CNG further increased its share in Passenger Vehicles and Commercial Vehicles, reflecting the gradual diversification of Indias mobility landscape.

On the demand-side, rural India continued to narrow the gap with urban markets. For FY 2025-26, rural retail grew 13.05% compared witRs. 13.62% in urban markets reflecting rising rural incomes, improving road connectivity and increasing mobility needs. Within Passenger Vehicles, rural demand significantly outpaced urban growth at 17.12% versus 10.43%.

FY 2025-26 closes as a defining year for Indias auto retail industry, with supportive policy measures, resilient macroeconomic conditions and broad-based consumer demand combining to deliver record volumes and lay the foundation for the next phase of structural growth.

OUTLOOK

33After a landmark year for the Indian Automobile industry, supported by a series of structural policy reforms that have strengthened demand fundamentals and significantly boosted consumer confidence, the industry is optimistic about growth across all vehicle categories in FY 2026-27, continuing the strong domestic momentum from the latter half of FY 2025-26.

31 Further, domestic demand momentum is expected to continue this fiscal, albeit with some growth moderation owing to higher base. LCVs, accounting for ~60% of the industry volume, are projected to grow 5-6%, driven by e-commerce and last-mile delivery demand, while MHCV volumes are expected to expand 4-5%, supported

by freight movement and infrastructure spending.

The ongoing shift toward higher-tonnage vehicles, aided by improved road infrastructure, could moderate volume growth even as underlying demand remains steady.

33 However, uncertainties arising from the West Asia conflict, particularly prices of Crude Oil and Commodities, higher exchange rates and disruptions in shipping routes, remain a concern for the auto sector. A stable geopolitical environment will help build confidence, which in-turn can drive further growth of the Auto industry in FY 2026-27.

Company Overview

Jayaswal Neco Industries Limited (JNIL) is one of Indias leading fully integrated manufacturers of alloy steel long products and iron & steel castings for the automotive and construction sectors, with operations spanning the entire steel value chain from captive iron ore mining to value-added finished products. The Company operates an integrated business model comprising captive iron ore mines, iron and steel manufacturing facilities, pelletisation, rolling mills, captive power generation and foundry operations, enabling greater control over raw material security, manufacturing efficiency, product quality and supply reliability.

Our diversified product portfolio comprises alloy steel long products including bars, wire rods, billets and bright bars, as well as metallic products such as sponge iron, pellets, and pig iron. The portfolio is further complemented by value-added castings and construction products including precision castings, hubless pipes, cast iron pipes, ductile iron pipes, pipe fittings, and manhole covers. These products serve a broad range of end-use industries, including automotive, engineering, railways, infrastructure, oil & gas, power, defence, agriculture and other industrial sectors. Supported by integrated manufacturing capabilities, long-standing customer relationships and a continued focus on quality, innovation and operational excellence, we remain well-positioned to meet the evolving requirements of domestic and international markets.

Our operations are backed by globally recognised quality management systems and a strong commitment to sustainable manufacturing through initiatives such as zero liquid discharge, wastewater recycling, fume extraction systems and afforestation. We are equally committed to maintaining high standards of corporate governance, with an experienced leadership team driving transparency, stakeholder engagement and regulatory compliance.

Business Segments

Steel Plant Division

The Steel Plant Division operates a 1 MnTPA integrated steel manufacturing facility at Raipur, Chhattisgarh, supported by a comprehensive manufacturing ecosystem comprising pellet plant, sinter plants, coke ovens, DRI plants, furnace, steel melting shops, rolling mills and 54.5 MW of captive power generation capacity. The Division is further strengthened by two captive iron ore mines with a combined mining capacity of around 7.00 MnTPA, providing complete iron ore self-sufficiency and supporting efficient, uninterrupted operations, with mining lease valid until 2055.

We specialise in manufacturing a wide range of alloy steel products in various grades, shapes and sizes, including wire rods, bars and bright bars. These products cater to diverse end-use industries such

as automotive, engineering, construction, railways, defence and power. As an approved supplier to leading automotive OEMs, we continue to strengthen our market presence while expanding our customer base across the domestic market.

Strategic Location Advantage

Our Steel Plant Division derives significant competitive advantage from its location at Siltara, Raipur (Chhattisgarh). The plant is situated within a well-developed industrial region with ready access to land, water, power and transport infrastructure, while remaining close to key raw material sources and major steel-consuming markets.

The availability of skilled professionals from nearby cities and a dependable workforce from surrounding villages supports efficient plant operations. Proximity to our captive iron ore mines, coal sources and other critical raw materials further strengthens supply chain reliability and operational continuity.

Excellent road, rail and air connectivity facilitates efficient movement of raw materials and finished products across domestic and export markets. The Division is supported by a 13 km dedicated railway siding, which enables efficient transportation of incoming raw materials and internal material movement, while the proximity of Visakhapatnam Port (approximately 550 km) supports the import of key raw materials.

Production flexibility across our rolling mills and our central location which provides convenient access to automotive OEMs and component manufacturers across India, enables us to respond efficiently to changing customer requirements while maintaining high levels of service and operational efficiency.

100

Performance

FY 2025-26 was a landmark year for the Steel Plant Division, with record operational and commercial performance across key manufacturing units. Supported by higher capacity utilisation, enhanced operational efficiencies and improved raw material availability, the Division achieved its highest-ever alloy steel sales of 7,23,744 MT, surpassing the previous record of 5,67,365 MT achieved in FY 2023-24 by 28%.

The division delivered record production across several operating units during the year as compared to the previous year. Blast Furnace production increased to 8,57,600 MT from 5,70,712 MT while Steel Melt Shops production rose to 7,42,274 MT from 5,48,382 MT, Rolling Mills production also reached a record 7,07,363 MT compared witRs. 5,25,902 MT, Pellet Plant achieved its highest-ever production of 13,69,506 MT up from 13,03,003 MT, supported by its longest continuous campaign period of 459 days. The DRI Plant also surpassed its previous production record of 2,69,999 MT achieved in FY 2024-25 to reacRs. 3,01,136 MT.

Captive mining operations also recorded significant milestones during the year, further strengthening raw material security and reinforcing the Companys integrated manufacturing model. Combined production

from the Companys two captive iron ore mines reached 37,23,411 MT, Production at the Chhotedongar Iron Ore Mine increased to 27,23,563 MT during the year from 20,66,114 MT, while the Metabodeli Iron Ore Mine recorded production of 9,99,848 MT during the year.

Strategic Focus

Our strategic focus remains on strengthening the competitiveness of our integrated steel business through operational excellence, resource optimisation and sustainable growth. During the year, we enhanced raw material security through the expansion of captive iron ore mining capacity while continuing to improve manufacturing efficiencies across the value chain.

The proposed 1.50 MnTPA Straight-Grate Pellet Plant, along with the 2.0 MnTPA Iron Ore Wet Grinding System, represents a key growth initiative to maximise value from surplus captive iron ore, improve resource utilisation and create an additional revenue stream. Alongside this, we continue to focus on digital transformation, renewable energy adoption and disciplined capital allocation to enhance long-term competitiveness and deliver sustainable value to stakeholders.

Mining Operations

Our mining operations form the foundation of our backward integration strategy, supporting cost competitiveness, operational resilience and long-term resource sustainability. We operate two major captive iron ore mines, along with small titaniferous ore and limestone mines in Maharashtra and Chhattisgarh. The expanded mining capacity not only strengthens iron ore self-sufficiency for our steel operations but also provides opportunities for value addition through the proposed pellet plant. Our mining operations continue to receive industry recognition across multiple categories for excellence in operational practices, safety and sustainable mining.

a. Chhotedongar Iron Ore Mine

The Chhotedongar Iron Ore Mine, spread over 192 hectares in the Narayanpur district of Chhattisgarh, has undergone significant capacity augmentation, increasing its annual mining capacity to 6.00 MnTPA from 2.95 MnTPA. The mine follows zero-waste mining practices and plays an important role in meeting the Companys captive iron ore requirements.

b. Metabodeli Iron Ore Mine

The Metabodeli Iron Ore Mine, spread across 25 hectares in the Kanker district of Chhattisgarh, has an annual mining capacity of 1.0 MnTPA. The mine follows zero-waste mining practices and is recognised as one of the countrys lowest-cost iron ore producers.

c. Dhobitola & Manegaon Mines

The Dhobitola and Manegaon mines in Amgaon Tehsil, Gondia district, Maharashtra, produce titaniferous iron ore through the open-cast mining method. The Dhobitola Mine has an annual mining capacity of 7,500 TPA, while the Manegaon Mine has an annual mining capacity of 20,000 TPA.

d. Manpur Limestone Mine

The Manpur Limestone Mine in Kabirdham district, Chhattisgarh, holds estimated limestone reserves of 34.2 lakh tonnes, ensuring long-term availability of limestone for the Companys operations.

Castings Division

In FY 2025-26, our Castings Division delivered another year of stable operational performance, reflecting the resilience of our manufacturing capabilities and the strength of our customer relationships. Building on the momentum of the previous year, the division continued to manufacture a diverse portfolio of high-quality castings serving a broad spectrum of industries, including automotive, engineering, construction, and other industrial applications.

The division operates through three strategically located manufacturing facilities at Anjora (Chhattisgarh), Nagpur, and Butibori (Maharashtra). This well-integrated manufacturing network provides close proximity to key automotive and industrial hubs, strengthening supply chain efficiency, enhancing responsiveness to customer requirements, and supporting the timely delivery of high-quality products while optimising logistics and operational efficiencies.

Castings Division Performance

The Castings Division delivered a resilient performance during FY 2025-26 as compared to the previous year, supported by stable demand across key end-user industries and continued focus on operational efficiency, product quality and customer service. During the year the Division recorded production of 49,213 MT from 47,546 MT, while sales of 48,761 MT from 46,653 MT.

The division continued to strengthen its presence across domestic and international markets by catering to the requirements of the automotive, engineering, water infrastructure and other industrial sectors. Supported by process improvements, quality enhancement initiatives and prudent cost management, the Division remained focused on improving operational efficiencies while delivering value to customers.

Financial Review

FY 2025-26 marked a year of strong financial performance for the Company, driven by record operational achievements, higher steel sales volumes and continued focus on operational efficiency as compared to the previous year. Revenue from operations increased to H7,132 crore from H6,000 crore in the previous year, registering a growth of 19%. The improvement was primarily supported by improved capacity utilisation and sustained demand across key end-user industries.

The Companys operating performance strengthened significantly during the year, with EBITDA increasing by 41% to H1,341 crore, compared with H952 crore. The improvement was driven by higher production across key manufacturing units, enhanced operational efficiencies, improved product mix and continued emphasis on cost optimisation, resulting in a healthy expansion in operating margins.

The strong operating performance translated into improved profitability. Profit Before Tax (PBT) increased to H603 crore from H103 crore, while Profit After Tax (PAT) rose to H463 crore, compared with H113 crore. The improvement reflects stronger operating earnings, lower finance costs and disciplined financial management during the year.

The Companys financial position continued to strengthen through sustained deleveraging and healthy cash generation. Secured debt declined by 22% to H2,118 crore as at 31 March 2026 from H2,721 crore, while finance costs reduced by 24% to H426 crore, supported by refinancing initiatives and repayment of borrowings. Net cash generated from operating activities stood at H1,367 crore, providing financial flexibility to fund capital expenditure, reduce debt and support future growth initiatives. Tangible net worth also increased to H2,776 crore, reflecting the Companys stronger balance sheet and continued value creation for stakeholders.

Key Financial Information

Abridged Balance Sheet Comparison

Particulars	As on March 31, 2026	As on March 31, 2025	As on March 31,2024
Non-Current Assets	3,591	3,693	3,734
Current Assets	2,379	2,048	2,366
Total Assets	5,970	5,741	6,100
Net Worth	2,841	2,376	2,263
Non-Current Liabilities	1,418	2,436	3,091
Current Liabilities	1,711	930	746
Total Liabilities	5,970	5,741	6,100

Abridged Profit and Loss Comparison

Particulars	FY 2025-26	FY 2024-25	FY 2023-24
Revenue from Operations	7,132	6,000	5,934
Total EBITDA	1,341	952	1,045
Profit Before Tax	603	103	291
Profit After Tax	463	113	210
Total Comprehensive Income	466	112	205

Abridged Cash Flow Comparison

Particulars	FY 2025-26	FY 2024-25	FY 2023-24
Cash Flow from Operating Activities
Profit / (Loss) before tax as per Profit and Loss Account	603	103	291
Add / (Less): Adjustments for Non Cash and Non Operating Income	728	843	740
Add / (Less): Adjustments for Working Capital Changes, Direct Taxes (Paid) /	46	442	(350)
Refund and Exceptional Items	(10)
A) Net Cash Flow from Operating Activities	1367	1388	681
B) Net Cash Flow from Investing Activities	(113)	(236)	(177)
C) Net Cash Flow from Financing Activities	(1284)	(1086)	(486)
Net Increase / (Decrease) in Cash and Cash Equivalents	(30)	66	17
Add : Opening Cash and Cash Equivalents	156	89	72
Closing Cash and Cash Equivalents	126	156	89

Key Financial Ratios

Ratios	As on March 31, 2026	As on March 31, 2025	Changes %	Remarks
Current Ratio	1.39	2.20	(36.84)	The Ratio has declined mainly as the Current Liabilities have increased considerably compared to Current Assets as on 31st March 2026. The increase is predominantly due to increase in Short Term Borrowings as Fund based Working Capital limits have been availed in FY 2025-26 and also increase in Trade and other payable and due to usage of internal accruals to pay Long Term Secured Debt by Cash Sweep of Principal. Further, there is increase of 16% in Current Assets compared to previous year due to increase in Inventory.
Net Profit (Loss) Margin (%)	6.49%	1.88%	245.76	The Net Profit Margin% of the Company has increased significantly. The Profit after Tax has increase by 311% in FY 2025-26 compared to previous year and the Turnover has also shown increase of 19% in FY 2025-26 compared to the previous year. The Profit after Tax during FY 2025-26 has increased due to overall (Operational, Commercial, Financial, etc.) Outstanding performance of the Company in the Current year with increase in EBITDA margin and reduction of Finance cost. The Turnover in FY 2025-26 compared to the previous year has increased mainly due to increase in Sales Quantity of Pig Iron, Pellet & Rolled Products and increase in Selling Prices of all products except Rolled product.
Return on Net Worth (%)	17.75%	4.86%	265.46	The Profit after Tax has increase by 311% in FY 2025-26 compared to previous year. Due to overall (Operational, Commercial, Financial, etc.) Outstanding performance of the Company in the Current year with increase in EBITDA margin and reduction of Finance cost. Further, the Average Net Worth of the Company has also increased due to Profit after Tax.
Total Debt / Equity Ratio	0.75	1.16	(35.49)	The Ratio has improved significantly as on 31st March 2026 compared to previous year mainly due to Repayment of Secured debt through Cash sweep and the Scheduled Repayment with reduction of Debt outstanding by 23%. Further, the Net Worth of the Company has also increased by 20% compared to previous year due to Profit after Tax during the year.
Interest Coverage Ratio	3.15	1.69	85.75	The Ratio has significantly improved due to increase in EBITDA and reduction in Finance Cost in FY 2025-26 compared to previous year. The EBITDA has increased mainly due to increase in Sales Quantity of Pig Iron, Pellet & Rolled Products and increase in Selling Prices of all products except Rolled product. The Finance Cost has decreased mainly due to successful Debt Refinance & augmentation of liquidity through cheaper working capital facilities in the December 2025. From December 2025 onwards the booking of Interest cost for lower cost NCD is @ 12.50% p.a and Working Capital Facilties @ 11.00% p.a instead of booking of Interest cost for Higher Interest cost NCDs @ 17.50% p.a. before December 2025. Further, the Interest cost has also reduced on account of reduction in the outstanding debt due to Cash Sweep & regular monthly principal repayments.

Other Key Ratios

Particulars	As on March 31, 2026	As on March 31, 2025	As on March 31,2024
EBITDA to Net Sales Ratio	18.80%	15.87%	17.62%
PAT (+ OCI) to Net Sales Ratio	6.53%	1.87%	3.46%
Fixed Assets Coverage Ratio (FACR)	1.57	1.28	1.09
Current Ratio	1.39	2.20	3.17
Total Outside Liabilities to Tangible Net Worth Ratio	1.13	1.46	1.73
Total Debt / Equity Ratio	0.75	1.16	1.44
Total Secured Debt / EBITDA Ratio	1.55	2.83	3.06
Return on Capital Employed Ratio	20.87%	13.30%	14.36%

Stronger Credit Profile through Sustained Financial Deleveraging

Over the last six years, the Company has undertaken consistent financial deleveraging, consistently strengthening its balance sheet through prudent financial management, improved operating performance and healthy cash generation. Since March 2020, secured debt has declined by approximately 63%, reflecting the Companys continued focus on reducing financial leverage while undertaking responsible expansion.

Building on this progress, FY 2025-26 marked another important milestone. During the year, the Company successfully refinanced high-cost borrowings through

the issuance of lower-rate Non-Convertible Debentures (NCDs), supported by internal accruals and augmentation of liquidity through working capital facilities, reducing its cost of borrowing and improving its debt maturity profile. Supported by strong operating cash flows, secured debt declined further to H2,118 crore as at 31 March 2026 from H2,721 crore in the previous year, while finance costs reduced significantly. These initiatives have strengthened the Companys financial position, enhanced liquidity and created greater financial flexibility to support its future growth plans.

Human Resource and Industrial Relations

Building a Future-ready Workforce

During the year, the Company continued to strengthen its talent pipeline in line with evolving workforce requirements. Campus recruitment was undertaken across NITs, IIT and IIMs across multiple states, supporting the Companys efforts to build a strong pipeline of talent for future business needs.

A structured development programme was also undertaken for 32 Management Trainees recruited from premier institutes, supporting the Companys long-term leadership and functional talent pipeline.

Strengthening Skills and Capabilities

Continuous learning remained a key focus, with capabilitybuilding interventions covering technical, functional, behavioural, managerial, safety, quality and operational excellence areas. During FY 2025-26, 929 training programmes were conducted on various areas, attended by more than 27,500 participants.

The training interventions supported the Companys operational priorities of Zero Accident, Zero Breakdown and Zero Defect, while strengthening the skills required to respond to evolving business and operational requirements.

The Company also partnered with IIM Raipur for a specialised Artificial Intelligence Development Programme, witRs. 30 identified future leaders nominated to build capabilities in Artificial Intelligence, emerging digital technologies and their applications in manufacturing and business operations.

Accelerating HR Digitalisation

We advanced the digitalisation of its HR processes through an integrated Human Resource Management System (HRMS) covering HR information, leave, attendance, promotion, transfer and performance management.

Digital learning was also enabled through an E-Library and E-Learning Portal, providing employees with access to technical, functional, managerial, behavioural and leadership learning resources.

Employee Engagement and Workplace Culture

The Company continued to strengthen employee engagement through structured mechanisms for employee participation and feedback. The Open House Programme provides employees with a platform to raise workplace, welfare, safety and productivity-related concerns, with feedback reviewed and action taken communicated through Action Taken Reports. The Companys commitment to building a positive workplace culture was also reflected in its recognition as a Great Place to Work for five consecutive years.

Key Indicators	FY 2025-26
Training programmes	950+
Training participants	27,500+
Management Trainees	32
Future leaders in AI programme	30

Risk Management

Our risk management practices are guided by a comprehensive and structured framework designed to identify, assess and mitigate potential risks to the business. Details of the Risk Management Policy, risk categories, governance framework and mitigation measures are presented in the ‘Risk Management section of this Annual Report.

Internal Control System and Their Adequacy

The Company regards internal controls as a cornerstone of sound corporate governance. In accordance with Section 134(5)(e) of the Companies Act, 2013, the Board of Directors is responsible for ensuring that adequate internal financial controls are laid down and that such controls are operating effectively.

Governance and Oversight

• The Audit Committee of the Board regularly reviews audit plans, significant findings, adequacy of controls, compliance status and corrective actions.

• The Board ensures that the internal financial control (IFC) framework is aligned with the Companys nature, size, complexity and risk profile.

Framework of Internal Controls

The Company has instituted a comprehensive IFC

framework comprising:

• A well-defined organisational structure with clear roles and responsibilities.

• Documented policies, procedures and guidelines covering all critical operations.

• Financial delegation of authority supported by integrated ERP-based controls.

• Preparation of annual budgets and continuous monitoring of performance.

Key Features

• Technology-enabled Controls: Integrated ERP software with embedded controls ensures accurate financial reporting.

• Compliance Management: Dedicated compliance software supports adherence to applicable laws, regulations and standards.

• Internal Audit Function: A well-established in-house Internal Audit team, operating in line with governance best practices, reviews compliance, operational efficiency and key process risks, reporting directly to management and the Audit Committee.

• Manual Process Controls: In addition to automated systems, manual checks and validations are embedded across key processes to ensure accuracy, accountability and oversight where automation alone may not suffice.

• Risk Management: A structured risk management framework, supported by appropriate information systems, enables identification, assessment, monitoring and mitigation of key business risks.

• Authorisation and Risk Matrices: Well-documented authorisation and risk control matrices safeguard operations.

Evaluation of Effectiveness

The Companys internal control environment ensures:

• Efficient conduct of operations.

• Security of assets.

• Prevention and detection of frauds and errors.

• Accuracy and completeness of accounting records.

• Timely disclosure of reliable financial information. Effectiveness of financial controls is assessed through:

• Ongoing management monitoring and review.

• Independent audits by the Internal Audit Department and external agencies.

During the period covered by this Annual Report, there were no changes in internal control over financial reporting that materially affected or are reasonably likely to materially affect, the Companys internal control environment.

Limitations

The Company acknowledges that no system of disclosure controls and procedures can be entirely free from limitations, including the risk of human error or circumvention. Accordingly, even effective controls provide only reasonable assurance of achieving their objectives.

In designing and evaluating controls, management applies judgment in balancing the cost-benefit relationship of possible measures.