John Cockerill India Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS Global Steel Industry

The global steel industry in 2025 continued to operate under sustained pressure arising from subdued demand, persistent structural overcapacity, and volatile trade dynamics. These factors collectively weighed on production volumes, pricing, and profitability across most regions. World Steel Association data reflected a progressive slowdown through the year, with monthly global crude steel production declining from approximately 166 million tonnes in March 2025 to about 140 million tonnes by November 2025. This trend translated into year-on- year decline of 4-6% during the latter part of the year, underscoring the fragile demand environment.

China remained the single most influential determinant of global steel market conditions. During 2025, Chinas crude steel production declined to approximately 961 million tonnes, representing a 4.4% reduction compared to the previous year and marking its lowest production level in seven years. This contraction was driven largely by prolonged weakness in the real estate sector and moderated infrastructure activity However, despite lower domestic output, Chinese steel exports increased sharply to around 119 million tonnes, registering year-on-year growth of over 7%. These elevated exports intensified competitive pressures in international markets and exerted downward pressure on global steel prices.

Outside China, regional performance remained uneven. Europe continued to face contraction amid high energy costs, weak industrial demand, and subdued construction activity In contrast, North America demonstrated relative resilience, supported by infrastructure spending and automotive demand, with steel consumption estimated to have grown by approximately 1.5% to 2% during the year. Emerging markets, particularly India, continued to register demand growth supported by public infrastructure investment and manufacturing expansion, although this growth was insufficient to fully offset weakness in mature markets.

As a result of these divergent regional trends, overall global steel demand in 2025 remained broadly flat. Industry projections suggest that a more visible recovery may emerge from 2026 onwards, with global steel demand forecast to reach approximately 1.77 billion tonnes, representing growth of around 1% to 1.5%.

Trade dynamics remained a defining feature of the year. Elevated export volumes from surplus-producing regions contributed to intensified competition and generally subdued steel prices. Persistent excess capacity constrained pricing power and profitability across the industry, reinforcing the need for cost optimisation, productivity improvements, and operational efficiency

Against this backdrop, sustainability and decarbonisation continued to shape long-term industry strategy. Steel producers persisted with investments in electric arc furnaces, hydrogen-based steelmaking routes, carbon capture technologies, and digital solutions aimed at improving energy efficiency and reducing emissions, even as challenging market conditions constrained near-term returns.

Economic and Geopolitical Challenges

The global steel industry in 2025 was further shaped by a complex economic and geopolitical environment, which continued to affect demand visibility, cost structures, and trade flows. Slower global economic growth, tight monetary conditions, and heightened geopolitical tensions combined to create a cautious operating landscape across most steel-producing and steel-consuming regions.

Global economic growth remained moderate during the year, constrained by persistently high interest rates deployed to control inflation in major economies. Elevated borrowing costs adversely impacted capital-intensive sectors such as construction, real estate, and manufacturing, which are key drivers of steel demand. In several advanced economies, private investment and residential construction activity remained subdued, directly limiting steel consumption growth and delaying project execution.

Geopolitical tensions continued to disrupt global trade and supply chains. Ongoing conflicts and regional instability, including tensions in Eastern Europe and the Middle East, contributed to uncertainty in energy markets and logistics networks. Volatility in energy prices— particularly natural gas and electricity in Europe—increased production costs for steelmakers and further reduced the competitiveness of energy-intensive operations. While energy prices moderated from earlier peaks, they remained above historical averages, especially in Europe.

Trade fragmentation intensified during 2025. Rising steel exports from surplus-producing regions, particularly China, prompted several importing countries to implement or strengthen safeguard measures, anti-dumping duties, and sustainability-linked trade barriers. These actions disrupted traditional trade flows, increased compliance costs, and added complexity to global market access for steel producers and equipment suppliers.

Currency volatility further added to industry risk, particularly in emerging markets. Exchange-rate fluctuations affected raw material import costs, export competitiveness, and debt servicing obligations, increasing financial uncertainty for steel producers operating across multiple geographies.

In parallel, climate policy developments and the global energy transition continued to reshape the operating environment. Increasing regulatory focus on carbon emissions, carbon pricing mechanisms, and green procurement policies placed additional pressure on conventional steelmaking routes while accelerating the need for capital investment in low-carbon technologies. While supportive of long-term sustainability objectives, these measures increased short- to medium-term capital and operating cost pressures.

Overall, the combined impact of economic slowdown, geopolitical uncertainty, energy market volatility, and evolving trade and climate policies resulted in a cautious business environment for the global steel industry in 2025. These conditions reinforced the importance of operational resilience, geographic diversification, cost discipline, and technology-led efficiency improvements.

China?s new focus

The evolution of Chinas steel industry in 2025 can be defined as a year of strategic transition, shaped by oversupply pressures, weak domestic demand, and an accelerated push toward sustainability. The key dimensions of the evolution in 2025 rely on a better match between production and demand that fell by approx. 2% due to weak property investment and slowdown in infrastructure projects. The export dependence has increased sharply despite global trade friction and tariffs.

China has launched a 2025-2026 work plan shifting production volume to quality, efficiency and profitability with capacity discipline including phasing out outdated mills. Green ^Technological upgrading are encouraged with developing of EAF steel base production, hydrogen metallurgy with the support of preferential financing (e.g. ultra-long term government bond and loans).

India: A Bright Spot in the Global Market

Against the subdued global backdrop, Indias steel industry continued to stand out in 2025, demonstrating strong growth and resilience. While global production and demand showed weak momentum, India emerged as a key growth driver, supported by expanding capacity robust domestic demand, and favourable policy support.

India retained its position as the worlds second-largest crude steel producer. Domestic finished steel consumption remained strong, underpinned by sustained infrastructure investment, rising urbanisation, and manufacturing sector expansion. According to official industry data, Indias crude steel production capacity increased to over 200 million tonnes in FY25. In the first four months of FY26 (April-July 2025), crude steel output stood at approximately 54.19 million tonnes, while finished steel production reached about 51.46 million tonnes, reflecting healthy capacity utilisation.

Industry projections indicate that steel demand in India grew by around 8% during 2024 and 2025, positioning India as the fastest-growing major steel market globally Domestic consumption in FY25 reached elevated levels, reinforcing Indias role as a major global steel consumer at a time when demand in advanced economies remained subdued.

Capacity expansion continued in alignment with long-term strategic objectives. Indias total crude steel capacity reached an estimated 200 million tonnes in FY25, with plans to scale this to 300 million tonnes by 2030 under the National Steel Policy supported by strong policy backing and industry investment.

Corporate producers reported solid operational performance. For instance, Tata Steel Indias FY2025 crude steel production increased by approximately 5% year-on-year to around 21.8 million tonnes, with domestic deliveries growing in line with production.

Trade flows showed signs of balance. During April-July FY26, exports and imports stood at approximately 1.7 million tonnes and 1.67 million tonnes, respectively, indicating near equilibrium and reflecting evolving global and domestic price dynamics.

Indias infrastructure push-including transport, urban development, and industrial corridors-continued to anchor steel demand. Supported by strong manufacturing PMI readings and policy measures such as safeguard duties, domestic producers were able to defend pricing despite global pressure from excess supply

Overall, Indias performance in 2025 reinforced its role as a critical anchor of global steel growth, supported by resilient domestic demand, accelerating capacity build-out, and stable operational execution.

Performance of Developed Economies

Developed economies in 2025 avoided recession but faced slower, uneven growth. Trade tensions, tariffs, and inflation risks weighed heavily, while resilience came from strong consumer demand and emerging productivity gains from AI.

Steel consumption in OECD countries (U.S., EU, Japan, Korea, etc.) remained largely constant, with little growth compared to emerging markets. Global planned capacity expansions (especially outside OECD) worsened the problem of overcapacity, pushing down utilization rates and profitability. In addition, weak demand combined with high capacity led to downward pressure on steel prices, squeezing margins for producers.

Developed economies continued investing in low-carbon steelmaking technologies (hydrogen-based DRI, electric arc furnaces), but these required heavy capital outlays, adding cost pressures.

Sector-Specific Trends

In 2025, the automotive industry in developed economies did not drive steel demand growth. Instead, consumption was flat or declining, with a shift toward specialized high-strength and electrical steels rather than bulk volumes. Emerging economies (like China) were the only regions showing notable growth in automotive steel demand, highlighting the divergence between OECD and non-OECD markets.

Automotive steel consumption in OECD countries (U.S., EU, Japan, Korea) showed little or no growth. Vehicle production remained subdued, especially in Europe and Japan, where demand stagnated. Automakers in developed economies continued substituting traditional steel with aluminium and composites to meet fuel efficiency and EV design requirements. This reduced steel intensity per vehicle. Electric vehicle production grew, but EVs generally use less conventional steel and more advanced grades (high-strength steels, electrical steels). This meant consumption patterns shifted rather than expanded.

OECD economies (U.S., EU, Japan, Korea) saw little growth in construction steel consumption. Demand remained constant compared to 2024. Construction projects in Europe especially faced higher costs due to energy prices and carbon transition measures, limiting new investment. Developed economies invested in green infrastructure (renewables, smart grids, low-carbon housing), which required specialized steel grades but not necessarily higher volumes.

Outlook for 2026 and Beyond

Looking ahead to 2026, Indias steel industry is expected to remain one of the strongest contributors to global demand growth, although performance will be shaped by both structural strengths and emerging risks.

Sustained public capital expenditure in transportation, urban development, renewable energy, and industrial corridors is expected to support steel consumption growth in the mid- to high-single-digit range during 2026. Manufacturing growth, supported by production-linked incentive (PLI) schemes, is expected to provide incremental demand support, enabling India to retain its position as the fastest-growing major steel market globally

At the same time, execution risks remain. Delays in infrastructure projects, land acquisition challenges, and fiscal constraints could impact the pace of steel offtake. Any moderation in public capital expenditure may soften near-term demand growth.

Raw material cost volatility represents another key risk. Despite domestic iron ore availability, dependence on imported coking coal exposes producers to global supply disruptions, geopolitical risks, and currency fluctuations, which could impact margins.

Trade-related risks are also expected to persist. Continued surplus exports from global markets may exert pressure on domestic pricing if global demand remains weak, even as safeguard measures provide partial protection.

Capacity expansion presents both opportunity and risk. Rapid commissioning without commensurate demand growth could temporarily affect utilisation levels, underscoring the importance of disciplined expansion.

Environmental and regulatory requirements are expected to tighten further, necessitating higher capital investment in decarbonisation and energy efficiency. While these investments strengthen long-term competitiveness, they may elevate short-term costs.

Overall, the Indian steel industry enters 2026 structurally well positioned. Producers with efficient operations, diversified portfolios, and advanced technologies are likely to outperform, while technology and equipment providers stand to benefit from continued investment in modernisation and sustainability

Economic Environment

The steel industry will be navigating a complex economic environment shaped by global demand shifts, trade policies, and sustainability pressures. The industry is recovering from earlier downturns (20222024), but growth remains uneven. Global demand is stabilizing, though not booming.

Declining Demand in Major Markets

Chinas steel industry entered a period of declining demand, marking a structural shift away from the massive growth era of the past two decades. Apparent steel consumption was projected to fall by 0.9% year-on-year, while crude steel output dropped by 1.1% compared to 2025.The decline was largely due to tighter production capacity regulations and Chinas pursuit of carbon peaking and neutrality goals, which restricted output and reshaped demand patterns. Analysts described 2026 as a turning point, with Chinas steel industry “retreating from its era of massive growth” and moving toward high-quality lower- volume development.

The steel industry in developed economies continued to face declining demand, reflecting structural weaknesses in construction, automotive, and manufacturing sectors. OECD steel demand remained constant or slightly negative, with no significant growth compared to 2025. The EU experienced its third consecutive annual recession in apparent steel consumption, driven by weak manufacturing, high energy costs, and lingering effects of war-related disruptions.

Emerging Market Growth

Emerging markets were the main growth engine for the global steel industry, offsetting stagnation in OECD and China. Steel demand in ASEAN, MENA, and Africa grew steadily, driven by infrastructure, housing, and industrialization projects. India stood out as the fastest- growing major steel consumer, supported by rapid urbanization, manufacturing expansion, and government-led infrastructure programs. The steel market was valued at USD 3.13 billion in 2026, with a projected CAGR of 5.7% through 2035, largely fueled by emerging economies.

Overcapacity Concerns

The steel industry is caught in a global overcapacity trap: too much supply chasing stagnant demand. This eroded profitability, distorted trade flows, and complicated the transition to low-carbon steelmaking. Policymakers in the EU and OECD were actively seeking protective measures, while producers in emerging markets continued expanding capacity to meet domestic growth.

Technological and Environmental Shifts

The steel industry is experiencing a major technological and environmental shift, marking a turning point from traditional mass production toward innovation and sustainability

Landmark projects with green hydrogen steel plant and new DRI (Direct Reduced Iron) investments signaled momentum in replacing coal- based blast furnaces with cleaner alternatives. Companies explored breakthrough methods to produce steel without carbon emissions, aiming to re-engineer the value chain. Enhanced recycling technologies have gained traction, reducing reliance on virgin iron ore and lowering emissions with a wider adaptation of EAF (Electric Arc Furnace).

Steel Scenario and Outlook:

The global economic environment in 2025 remained subdued, with global steel demand broadly flat and modest growth expected in 2026. Surplus production and elevated exports—particularly Chinas approximately 119 million tonnes of exports—continued to pressure international pricing.

In contrast, India remained one of the fastest-growing major economies, with FY26 GDP growth projected between approximately 6.3% and 7.2%. Institutions such as S&P and the World Bank forecast growth of around 6.5%-7.2%, highlighting the strength of domestic drivers.

This growth supports steel-intensive sectors, with domestic steel demand projected to grow by 8-9% in 2025 and 2026. Strong internal demand also buffers the industry against global volatility, even as raw material and trade risks persist.

However, global interest rates, currency volatility, and trade uncertainties could moderate growth, with some forecasts revising FY26 GDP growth to around 6.3%. This underscores the importance of continued policy support and structural reforms.

In summary, Indias strong GDP growth outlook underpins a resilient steel demand trajectory, insulating the sector from global headwinds while necessitating continued focus on cost control and supply-chain resilience.

In 2025, many steelmakers adopted a cautious capital allocation approach, delaying major expansion decisions due to weak global demand, price volatility, excess supply, high interest rates, and regulatory uncertainty As a result, companies prioritised efficiency improvements and brownfield optimisation over large greenfield investments.

GDP Growth Projections

After flat demand in 2025, global steel demand is expected to grow 1.3% in 2026, reaching about 1.77 billion tons. This rebound is driven by moderating declines in China and stronger demand in developing economies like India, Saudi Arabia, Egypt, and Vietnam.

The 2027-2030 trajectory growth is projected to remain modest but steady, averaging 1-2% annually Emerging markets will lead expansion, while OECD demand stays flat and China gradually declines.

India is expected to be the fastest-growing major steel consumer, targeting 300 million tonnes of capacity by 2030, supported by infrastructure and manufacturing growth.

The steel market is projected to grow at a CAGR of ~5-6% through 2035, with most of the momentum coming from emerging economies.

Implications for the Steel Industry

The projected GDP growth has significant implications for India?s steel industry:

• Increased Demand: Robust economic growth is expected to drive demand for steel in infrastructure development, manufacturing, and construction sectors.

• Capacity Expansion: To meet the growing demand, Indias steel production capacity is projected to reach 240-250 million tonnes by 2030, approaching the governments target of 300 million tonnes. This expansion will be concentrated in regions like

Odisha and Chhattisgarh, which are anticipated to remain key steel-producing hubs.

• The Union Budget 2026 projected steel demand growth of ~9%, driven by massive infrastructure spending. Policies supported decarbonization, including subsidies for hydrogen-based steelmaking and recycling. Adjustments to import/export duties aimed to secure raw material supply and stabilize domestic prices. Production-linked incentives (PLI) and trade protection measures continued to encourage domestic capacity expansion, with a target of 300 million tonnes by 2030.

John Cockerill to meet the needs of the time

John Cockerill demonstrates a strong commitment to advancing green steel production, focusing on innovative technologies and strategic partnerships to support the steel industrys transition toward sustainability

Key Initiatives

Partnership with Steel Authority of India Limited (SAIL)

In November 2024, John Cockerill India Limited signed a Memorandum of Understanding (MoU) with SAIL.

Several projects are currently under discussion and the road map defined in the MoU in November 2024 are well in progress.

Expansion into Iron & Steelmaking Technologies

John Cockerill has extended its Metals product portfolio to include Iron & Steelmaking technologies, supporting the steel value chains decarbonization efforts. This expansion encompasses Direct Reduced Iron (DRI), Electric Arc Furnace (EAF) technologies, and the development of Volteron?, a direct electrolysis method for iron reduction. These technologies aim to reduce carbon emissions and enhance energy efficiency in steel production.

Development of Volteron? Technology

John Cockerill is developing Volteron?, a pioneering iron reduction and steel processing route that utilizes direct electrolysis. This innovative approach has the potential to significantly reduce carbon emissions associated with traditional blast furnace methods, offering a more sustainable pathway for steelmaking.

Focus on Energy Efficiency and Hydrogen Integration

The Company is concentrating on enhancing energy efficiency and integrating hydrogen into steelmaking processes. By leveraging high- performance alkaline electrolyzers and integrated project execution solutions, John Cockerill enables steelmakers to produce green hydrogen, which can serve as a reducing agent in the liquid phase of steelmaking, thereby reducing reliance on fossil fuels and lowering carbon emissions.

Jet Vapor Deposition (JVD) Technology

JVD is a cutting-edge method for applying metallic coatings to steel strips. Unlike traditional hot-dip galvanizing, JVD involves vaporizing zinc under vacuum conditions and depositing it onto a moving steel strip. This process optimizes zinc usage, reducing material costs and environmental impact. Additionally JVD enables the coating of high-strength steel grades that are challenging to galvanize using conventional methods. John Cockerill has commercialized this technology offering it to steel producers worldwide.

E-Si? Processing Line

The E-Si? line is specifically designed for producing high performance electrical steels, essential for efficient electric motors and transformers. This technology addresses the increasing demand for electrical steel in the context of rising e-mobility and electric vehicle adoption.

Review of Operations

As of December 31, 2025, the Company closed the financial year with a net profit of 10.31 crore, reflecting the impact of a challenging economic and business environment. Order inflows were lower than anticipated, which weighed on overall performance, while revenue from operations stood at 357.59 crore.

Amid these conditions, our Value Services portfolio-comprising Revamps, Spares, and Services-continued to demonstrate resilience and delivered encouraging results. Our sustained strategic emphasis on this segment strengthens lifecycle support for customers, enabling operational upgrades and decarbonization while reinforcing our competitive positioning.

Despite external headwinds, we secured several marquee orders that underscore our market strength and execution capabilities. JSW JFE Electrical Steel Nashik Private Limited awarded us a major contract for High Temperature Tunnel Furnaces. Tata Steel Limited entrusted us with a Push-Pull Pickling Line and Acid Regeneration Plant at its Jamshedpur facility while Godawari Power & Ispat Limited awarded a contract for a 6 Hi Reversible Cold Rolling Mill at Tilda, Raipur. Our scope across these projects includes detailed engineering, equipment supply erection, and commissioning.

We also marked significant operational milestones during the year. At Tata Steels Kalinganagar plant, we supported the successful production of the first coil on Continuous Galvanizing Line-1 (CGL1). Similarly, at ArcelorMittal Nippon Steel (AMNS) Hazira, the successful production of the first coil on Continuous Galvanizing Line-3 (CGL#3) marked the transition from commissioning to full-scale operations.

Additionally, John Cockerill India Limited secured FAT certification from JSW Vasind for the CGL-2 Furnace Revamp.

Operational progress continues steadily across key customer sites, including Tata Steel, AMNS, and Jindal Steel Odisha Limited (JSOL), with project activities advancing as planned.

Opportunities and Threats:

The Indian steel industry enters 2026 with a unique mix of opportunities and threats, shaped by domestic demand growth, global market conditions, and evolving regulatory and technological trends.

Opportunities are primarily driven by robust domestic economic fundamentals. Indias GDP is projected to grow in the range of 6.3%-7.2% in FY26, supporting sustained demand across steel-intensive sectors such as infrastructure, urban development, housing, manufacturing, and energy transition projects. Strong public capital expenditure and private investment under schemes like the National Infrastructure Pipeline and production-linked incentives (PLI) are expected to fuel domestic steel consumption, projected to grow by 8-9% in 2026, positioning India as the fastest-growing major steel market globally. Additionally, the governments emphasis on green steel production and sustainable industrial practices creates opportunities for investments in energy efficiency, low-carbon technologies, electric arc furnaces, and digitalisation, which can enhance operational competitiveness and market access. Expansion in high-value downstream products, modernisation of existing facilities, and strategic localisation of raw material supply chains also offer avenues for improving margins and resilience.

Threats remain largely linked to global and domestic uncertainties. Continued weak global steel demand and excess supply exemplified by record exports of around 119 million tonnes from China in 2025, may exert competitive pressure on domestic prices and constrain export opportunities. Volatility in raw material prices, particularly coking coal and alloying elements, along with currency fluctuations, could increase production costs and affect margins. Higher global interest rates raise financing costs for capital-intensive projects, while evolving regulatory and environmental standards may require significant capital investment for compliance. Operational risks, including project execution delays, infrastructure bottlenecks, and energy supply volatility could also impact production schedules and profitability

Balancing these opportunities and threats, Indian steelmakers are increasingly focusing on strategic risk mitigation through process optimisation, brownfield expansion, digitalisation, and targeted investments in sustainability and energy efficiency. Combined with a resilient domestic market, these measures are expected to enable the Indian steel industry to sustain growth, improve competitiveness, and capitalise on the favourable demand outlook in 2026, even as global uncertainties persist.

Risk Management

Effective risk management is integral to our ability to achieve strategic objectives and sustain long-term success. Our Board of Directors holds the responsibility of identifying significant risks and ensuring the implementation of appropriate mitigation measures.

We have established a comprehensive Risk Management Framework to proactively identify assess, and address key risks across all major functions, including cybersecurity This framework is aligned with our business strategy and has been developed and approved by senior management. It ensures that both existing and emerging risks are managed systematically and effectively.

Risk identification is embedded across all stages of our operations, from the bidding and proposal phase of a project to its successful completion. We continuously assess internal and external risks related to resource availability supply chain dynamics, legal and regulatory compliance, and other critical business areas. Our well-defined project review mechanism enables timely actions and prudent decisionmaking, ensuring smooth project execution.

Each functional area within the Company plays an active role in risk assessment, identification, and control. We employ a structured bottom- up approach, where risk factors are first assessed at the functional level and subsequently escalated, as necessary to the Risk Management Committee, Audit Committee, and the Board. This approach integrates management oversight, independent reviews by internal auditors, and robust control mechanisms to enhance risk governance.

To further strengthen our risk management framework, the Company has constituted a Risk Management Committee at the Board level. This committee oversees the outcome of the annual risk mapping exercise and works closely with the Managing Director and other senior leaders to identify and address operational, commercial, and external risks. Through continuous monitoring and assessment, we remain agile in responding to evolving risk landscapes, reinforcing resilience and business sustainability.

Project Execution Update

We are pleased to report steady progress across our ongoing projects, with several key milestones achieved during the period. Commissioning activities, performance guarantee (PG) validations, and erection works are advancing as planned, reflecting strong execution discipline and effective project management across all sites.

Project Status Overview:

• TATA - CAL is under PG completion.

• TATA - CGL 1 commissioning has been completed and the project is currently under PG.

• TATA - CGL 2 commissioning is completed in February 2026.

• AMNS - CGL 3 commissioning has been completed and is under PG.

• AMNS - CGAL erection has been completed and the project is currently under commissioning.

• JSOL - ARP 1 was commissioned in January 2025, and FAC was completed in February 2025.

• JSOL - ARP 2 commissioning has been successfully completed in February 2026.

• JSOL - CGL 2 is under commissioning.

• Jindal India - CCL 3 is under erection.

• BRS - CCL has achieved FAC.

Overall, execution momentum remains strong across all projects. With multiple commissioning milestones achieved and several projects entering or completing the Performance Guarantee phase, the portfolio continues to progress in line with committed timelines. We remain focused on disciplined execution to ensure timely delivery and successful closure of all ongoing projects.

Human Resource Management and Industrial Relations

The Companys permanent workforce totaled 378 employees as of December 31, 2025.

Our people are at the heart of our growth. Through targeted training, cross-functional mobility and upskilling in emerging technologies, we equip employees to thrive in new roles and adapt to the ever-changing business landscape. This approach not only accelerates individual career development but also strengthens the Companys agility and competitive edge.

Diversity and inclusion remain central to our workforce strategy Recruitment efforts are designed to attract and retain female talent and ensure equal opportunities across all levels. Our performance management framework celebrates merit, recognizes contributions, and encourages continuous improvement, fostering a culture where every achievement is valued.

Employee well-being is a top priority Our comprehensive programs focus on mental health, stress management, and overall wellness. From health awareness sessions to flexible work arrangements and supportive leave policies, we strive to create an environment that balances professional growth with personal well-being.

In 2025, we invested 5,668 man-hours in employee training, demonstrating our commitment to continuous learning and development. Across all levels, our teams have nurtured collaborative and supportive relationships, driving both individual and organizational success.

The Board extends sincere appreciation to every employee for their dedication, cooperation, and contributions throughout the year. We remain committed to cultivating a workplace where every team member feels valued, supported, and empowered—paving the way for sustained growth and shared success.

Health and Safety

The Company places the highest priority on the health and safety of its workforce, actively pursuing a proactive approach to risk management. Our strategy emphasizes identifying and eliminating hazards wherever possible, implementing engineering and administrative safeguards, and providing personal protective equipment (PPE) for tasks with remaining risks.

As of December 31, 2025, our Taloja and Hedavali plants have achieved remarkable safety milestones, recording 4,543 and 2,826 days without a Lost Time Accident (LTA), respectively Our project sites have collectively maintained 2,120 days without an LTA, reflecting a strong culture of vigilance and accountability across all operations.

In 2025, we dedicated 1,796 hours to safety initiatives, including training programs, toolbox talks, awareness campaigns, and regular safety meetings. These efforts reinforce the knowledge, preparedness, and engagement of our workforce in creating a secure workplace.

Through consistent adherence to these safety practices and a focus on continuous improvement, the Company remains committed to protecting its employees and ensuring the long-term sustainability of its operations.

Prevention of Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

The Company is dedicated to creating a workplace that is safe, respectful, and inclusive for everyone. In line with the Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013 (POSH), we conduct comprehensive awareness and training programs for all employees.

These initiatives aim to educate our workforce on both the legal and ethical standards of workplace behaviour. Participants learn about what constitutes sexual harassment, the Companys policies and reporting mechanisms, and the responsibilities of the Internal Complaints Committee (ICC). By ensuring that every employee-regardless of role or seniority-is well-informed, we foster a culture of accountability and mutual respect.

Through these programs, we empower our team members with the knowledge and tools to identify prevent, and address inappropriate conduct, reinforcing a work environment where the dignity and integrity of every individual are protected.

Information Technology

This year, the focus was on the datacenter and connectivity infrastructure. The reason for this focus is the Microsofts O365 platform which is the key environment for the collaboration at global level. In the datacenter we have implemented the technology called HCI (hyper converge infrastructure) from Nutanix with vSphere as the Hypervisor from VMware. By implementing HCI technology we have reduced hardware, maintenance and power consumption costs. We have also upgraded our Windows OS in the datacenter from 2016 to 2022. After migration to Aurum Q2, we have improved our perimeter security and connectivity redundancy by implementing multiple links configured in auto-failover mode to achieve maximum availability of IT infra to all the users at all the locations.

The Company has strengthened the end user support by implementing global IT helpdesk ticketing tool called DigiAssist which helps us to improve tracking and visibility for end users.

In Engineering, we have implemented Autodesk Vault Professional to adopt and manage the 3D engineering repository and automate workflows.

Internal Control Systems

An effective internal control system is fundamental to our sustainable growth and sound corporate governance. We continuously evaluate and enhance our internal control framework to align with the evolving business environment and regulatory requirements. Our robust internal control mechanisms ensure transparency, accountability, and operational efficiency across all levels of the organization.

Our internal financial controls are designed to be commensurate with the nature and complexity of our business operations. These controls are aligned with the requirements of the Companies Act, 2013 ("the Act”) and adhere to the globally recognized "Internal Control Framework” issued by the Committee of Sponsoring Organisations (COSO) of the Treadway Commission. This comprehensive framework encompasses our management systems, organizational structures, IT general controls, entity-level policies, processes, and Standard Operating Procedures (SOPs). Additionally, we have established a "Risk Control Matrix” for each of our key processes, ensuring a structured approach to risk mitigation.

Compliance with internal control policies and procedures is embedded in our daily operations, management practices, and review mechanisms. We regularly assess the adequacy and effectiveness of these controls through periodic internal audits, covering both core business functions and support activities. The internal audit plan, developed by our management, undergoes a rigorous review by the Audit Committee. Significant audit observations, along with managements corrective actions and implementation progress, are presented to the Audit Committee for further evaluation.

The Audit Committee plays a pivotal role in overseeing the effectiveness of our internal control environment. It periodically reviews audit findings, assesses the sufficiency of internal financial controls, and monitors the implementation of audit recommendations to ensure continuous improvement. Based on an evaluation conducted under Section 177 of the Act and Clause 18 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Audit Committee has concluded that, for the period January - December 2024 and as of December 31, 2025, our internal financial controls were adequate and operating effectively.

Furthermore, M/s. S R B C & Co. LLP, the Statutory Auditors of the Company, have audited the financial statements included in this Annual Report and have issued a satisfactory report on our internal controls over financial reporting, as defined under Section 143 of the Act. This independent validation underscores the strength and reliability of our internal control framework, reinforcing our commitment to upholding the highest standards of corporate governance.

Cautionary Statement:

The Statements made in this report are forward-looking and are made based on certain assumptions and expectations of future events. The Company cannot guarantee that these forward-looking statements will be realized, though they are set out based on anticipated results and management plans. The Companys actual results, performance or achievements are subject to risk, uncertainties, and even inaccurate assumptions, which could thus differ materially from those projected in any such forward looking statements. The Board of Directors of the Company assumes no responsibility in respect of the forward-looking statements mentioned herein, which may differ in future on account of subsequent developments, events or otherwise and the Company is under no obligation to publicly update any forward-looking statements based on subsequent developments, information, future events or otherwise.