K E C International Ltd Management Discussions

<dhhead>Management Discussion & Analysis</dhhead>

GLOBAL ECONOMY

The global economy grew by 3.3% in 2024, demonstrating resilience amid escalating geopolitical instability, rising trade barriers and continued supply chain reconfiguration. Growth was supported by stable domestic demand in major economies, easing energy and commodity prices and a gradual recovery in investments.

Inflation moderated to 5.7% in 2024, down from 6.8% in 2023, as commodity prices declined and the effects of sustained monetary tightening took hold. Central banks in several economies began reducing policy rates toward the end of 2024 in response to improving inflation dynamics. The International Monetary

Fund (IMF) projects global inflation to ease further to 4.3% in 2025 and 3.6% in 2026, thereby improving financing conditions for businesses and governments.

Looking ahead, global GDP is projected to grow by 2.8% in 2025 and 3.1% in 2026, according to the IMFRss latest forecasts. This outlook refects ongoing geopolitical risks, policy uncertainty in large economies and structural shifts in global trade. While advanced economies are expected to grow by 1.4% in 2025, emerging and developing economies will remain the key drivers of global growth.

South Asia, led by India, is projected to grow at 5.7%, supported by

strong infrastructure investment, robust manufacturing activity and favourable demographic trends. The GCC countries are expected to grow by 3.0%, driven by economic diversification and infrastructure investment, particularly mega-projects and energy transition initiatives in Saudi Arabia and the UAE. Southeast Asia and select African nations are also experiencing steady growth, underpinned by urbanisation and infrastructure-led policy agendas.

The global economic outlook is cautiously optimistic, with easing inflation, falling interest rates. and steady growth in key emerging markets, sustaining growth in the coming years.

INDIAN ECONOMY

India continues to stand out as the fastest-growing economy among

the G20 nations with 6.5% GDP growth in FY25. This growth is supported by strong domestic

demand, rural consumption, higher capital investments and an increasing share of exports. IndiaRss nominal GDP is estimated at USD 4.19 trillion in 2025, making it the worldRss fourth-largest economy.

Retail inflation has softened in

line with global trends, with the Consumer Price Index (CPI) falling

to 3.3% in March 2025, well below the RBIRss medium-term target of 4%. This has allowed the RBI to cut the repo rate by 100 basis points to 5.5% in June 2025, supporting lending and investment activity.

The Union Budget 2025 allocated Rs 11.21 lakh Crore to capital

expenditure, focussing on transport infrastructure, urban development, renewable energy, affordable housing, defence and social infrastructure. CRISIL estimates that total infrastructure investment will reach Rs 143 lakh Crore during fiscals 2024-2030, including roads, railways, airports, urban transport, energy and digital infrastructure. Both central and state governments are funding these projects, with an active involvement of the private sector.

IndiaRss industrial and manufacturing sectors continue to grow. Government programmes such as RsMake in IndiaRs and Production Linked Incentives (PLI) have helped attract new investments.

The derisking of supply chains from China has positioned India as a favourable destination for exports of manufactured goods. Foreign direct investment (FDI) inflows grew by 14% to USD 81 billion in FY25. Industrial production has been steadily rising supported by better policies, stronger exports and growing domestic demand.

India is expected to cross the USD 5 trillion GDP mark soon. CRISIL projects average annual growth of 6.7%

between 2025 and 2031, making India the worldRss third-largest economy by 2031. Achieving this will require continued investment in infrastructure, reforms to improve business conditions and the development of skills and human capital.

Despite global trade tensions and geopolitical risks, IndiaRss core economic fundamentals are strong. Its growing domestic market and reform efforts provide a strong base for steady and sustainable growth. India displays a positive economic outlook supported by steady growth, controlled inflation, strong investment and effective policies. These factors create significant opportunities for companies such as KEC International to contribute to and benefit from the countryRss growth.

GLOBAL CONSTRUCTION INDUSTRY

The global construction industry remains robust, with investments estimated at about USD 17 trillion in 2025, growing at 5.5% over the previous year. It is expected to maintain this trajectory, growing at a CAGR of 5.7% until FY29. This growth is driven by substantial infrastructure stimulus, green-energy investment, rapid urbanisation and digital transformation in design and delivery. Public funding for infrastructure creation and private projects like mega-cities and tech parks are sustaining the demand, while

the adoption of advanced tools such as Building Information Modelling (BIM), 3D printing, and Artificial Intelligence (AI) is improving efficiency.

Asia-Pacific dominates the global construction industry, accounting for 45% of the worldRss construction output and is expected to be the fastest-growing market at 6.8%. Key markets include India, China, Saudi Arabia and Indonesia. The North American market demonstrates steady growth primarily fuelled by housing shortages and infrastructure renovation projects, while the European market which focusses on sustainable building practices and energy-efficient renovations, experienced a marginal decline in construction activity. In Africa, where the infrastructure gap is substantial, structural growth opportunities exist in power, housing, water and sanitation and transport infrastructure.

IndiaRss construction industry is a key pillar in its economic development. With the construction output growing 8.6% in FY25, the construction industry has surpassed USD 1 trillion in market size, making it the

third largest market in the world. It contributes 9% to the countryRss GDP and is the second-largest employment generator after agriculture. The sector is projected to grow at over 10% in FY26, driven by sustained public infrastructure investments, rising private capital expenditure, structural shifts in urbanisation, strong housing demand and industrial development.

This sector is a major focus area for the government, with large-scale investments of Rs 111 Lakh Crore envisaged under the National Infrastructure Pipeline across sectors such as energy, logistics, urban development and railways. IndiaRss ambitious target of achieving 596 GW of non-fossil fuel energy by 2032 has catalysed activity in the solar, wind and transmission sectors. The government, in its Union Budget 2025, has allocated a capital expenditure of Rs 11.21 Lakh Crore, representing 3.1 % of the GDP for the year. Total spending on construction and infrastructure in India is expected to surpass Rs 15 lakh Crore in FY26. Simultaneously, the sector attracted over USD 3.2 billion in Foreign Direct Investment (FDI) during the year, reinforcing investorsRs confidence

and global interest in IndiaRss infrastructure story.

Private sector capital expenditure is gaining momentum after a prolonged period of deleveraging. Sectors such as real estate, data centres, cement, steel, consumer goods and pharmaceuticals are witnessing renewed investments in capacity expansion and greenfield developments.

There is a clear shift towards integrated and digitally-enabled EPC solutions. Clients increasingly expect delivery partners to offer end-to-end capabilities in design, engineering, procurement, construction,

commissioning and Operations & Maintenance (O&M) under one roof. This is further supported by the rising complexity of projects and the need for timely, cost-effective execution.

The long-term growth trajectory for the construction sector remains strong. Structural megatrends, rapid urbanisation, a rising middle class, infrastructure upgrades, energy transition and digital transformation will continue to drive demand across segments.

POWER TRANSMISSION & DISTRIBUTION BUSINESS

The Transmission and Distribution (T&D) business remains a key growth driver for KEC International, contributing ~60% to both the overall revenue and orderbook. The company offers end-to-end solutions across the power transmission value chain, encompassing transmission lines, substations (AIS and GIS), including High Voltage Direct Current (HVDC) systems and underground cabling across both India and the international markets. The Company is currently executing ~150 transmission lines, substation and cabling projects across diverse geographies, including India, the Middle East, Africa, the CIS, Southeast Asia East Asia Pacific and the Americas.

Established presence across 70+ countries KEC is uniquely positioned as a global leader in the transmission and distribution (T&D) sector. It also provides a wide range of transmission towers, poles and hardware through its global manufacturing footprint.

KECRss key differentiators include a proven track record of executing large-scale projects under challenging environmental and logistical conditions, robust in-house engineering and design capabilities and six integrated state-of-the-art tower manufacturing facilities in India, Brazil, Mexico and the UAE. These facilities are equipped to produce a wide variety of towers, poles and hardware that meet international standards.

To strengthen the CompanyRss ability to cater to the growing domestic and international demand for transmission infrastructure, KEC undertook strategic capacity expansion at its manufacturing facilities in Jaipur, Jabalpur and Dubai, resulting in an aggregate increase of 46,000 MTPA (metric tonnes per annum) for transmission towers, taking the total capacity to 4,68,200 metric tonnes per annum. These investments will enable faster response to market demand, better localisation and improved supply chain control across key international markets.

The Company also operates four full-scale tower testing stations across India and Brazil, making it one of the few players globally with such capabilities. These facilities support testing of Lattice, Tubular and Guyed Towers up to 1,200 kV. The stations are accredited to international standards, enabling faster approvals and enhanced execution reliability.

The global Transmission & Distribution (T&D) market is experiencing rapid growth, with the total market size projected to reach approximately USD 450 billion by 2033, up from around USD 300 billion in 2024. This growth is driven by rising electricity demand, large-scale grid expansions to integrate renewable energy sources and the need to upgrade ageing infrastructure. Governments are focussed on deploying reliable and digitally

enabled power transmission systems to support energy transition goals.

As the energy sector moves towards decarbonisation, significant investments are expected in high-capacity interregional transmission corridors, digital substations, and advanced grid-balancing technologies such as STATCOMs and High Voltage Direct Current (HVDC) systems. The shift towards future-ready grid infrastructure is creating opportunities for companies with proven execution skills, engineering expertise and digital integration capabilities.

KEC International, with its diversified global footprint, in-house design and manufacturing capabilities and experience in executing complex T&D projects, is well-positioned to lead the next phase of grid transformation. The company is committed to delivering sustainable infrastructure that supports progress across continents and improve lives.

In FY25, T&D business recorded its highest-ever order intake of over Rs 17,800 Crore, driven by robust performance across both domestic and international markets.

During the year, the Company moved up the value chain by strengthening its presence in strategic segments of High Voltage Direct Current (HVDC), foraying into STATCOM market and developing capabilities in executing digital substations.

In line with the CompanyRss execution excellence agenda, the T&D business has significantly scaled up its use of mechanisation and real-time project management tools. Advanced techniques such as drone-assisted stringing, crane-based erection and precast foundations are being deployed to improve productivity, enhance worker safety and reduce project cycle times. Additionally, smart sensors and loT-enabled diagnostics are being implemented to monitor stringing equipment and optimise asset utilisation.

KECRss investments in building world-class engineering capabilities, developing global supply chain and driving execution excellence coupled with mechanisation and digitalisation will be the key enablers as it leads the next phase of growth in the T&D space, both in India and across international markets.

INDIA TRANSMISSION & DISTRIBUTION BUSINESS

KECRss India Transmission & Distribution (T&D) business achieved its highest-ever India order intake of Rs 7,214 Crore, marking a robust 22% year-on-year growth, closing the year with a healthy order book of over Rs 9,000 Crore and a favourable project mix. In line with the growth in order intake, the business has delivered a healthy revenue growth of 66% over the last year. This performance reflects the companyRss strategic focus on broadening its domestic client base, securing maiden orders from several private developers and reinforcing its leadership with multiple orders from Power Grid Corporation of India Limited (PGCIL).

During the year, the business maintained strong execution momentum, successfully

commissioning 21 T&D projects across India, charging over 1,600 circuit KM of transmission lines and installing around 8,000 MVA of substation capacity. Notable completions included the 765 kV Fatehgarh-Bhadla line and the 132 kV Khupi-Seppa line in Arunachal Pradesh delivered in challenging hilly terrain. These projects refect the CompanyRss ability to manage complex geographies and deliver high-voltage infrastructure aligned with our national energy goals.

A key milestone during the year was the CompanyRss first-ever STATCOM order, adding a critical new offering in grid-balancing technologies to its domestic portfolio. The business also made significant progress in other technology-led projects, including the commissioning of IndiaRss first 765 kV digital substation at Navsari.

Looking ahead, the Indian T&D sector is poised for significant expansion. As per the Central Electricity AuthorityRss National Electricity Plan (2022-32), peak power demand is projected to rise significantly, supported by a planned increase in total installed capacity to 900-997 GW by FY32, including 500 GW from renewable sources. Achieving this vision will require an estimated Rs 4.9

Lakh Crore investment in transmission infrastructure, including over 76,000 CKM of new lines, nearly 5,00,000 MVA of transformation capacity and 33 GW of HVDC links to enhance grid reliability.

KEC, in line with IndiaRss national transmission development roadmap, is strengthening its presence in technology-driven segments such as HVDC, STATCOMs and digital substations, while continuing to invest in automation, mechanisation and capability building to drive execution excellence.

The business is increasingly adopting digital and mechanised construction methods to enhance efficiency, quality and consistency. Precast concreting is being used for both substations and transmission towers, helping to reduce timelines and improve construction quality. Drone-assisted stringing is aiding execution in areas with right-of-way (RoW) constraints, while crane-based tower erection is enabling faster progress. The Company has also begun using smart sensors to monitor construction equipment and improve real-time site efficiency.

Sustainability and safety remained core priorities. The Company received multiple accolades, including International Safety Awards

from the British Safety Council and commendations from PGCIL and various State Electricity Boards. ESG initiatives included achieving water neutrality at project sites, installing solar-powered lighting and repurposing construction waste for safety-related infrastructure.

Backed by a strong order book, proven execution capabilities, in-house engineering and manufacturing and a wide range of service offerings, the Company is well-positioned to lead the next phase of IndiaRss transmission infrastructure development.

INTERNATIONAL T&D BUSINESS

KECRss Transmission & Distribution (T&D) international business maintained strong momentum in FY25, marked by robust execution, expansion into new markets and delivery of technologically complex projects. The year witnessed the CompanyRss highest-ever international order intake of Rs 8,346 Crore, more than doubled over the previous year, with a healthy closing order book of ~ Rs 8,750 Crore. Backed by a global execution footprint, multi-continent manufacturing

capabilities and expertise in turnkey transmission lines, substations and underground cabling, the company continues to reinforce its position as a leading global EPC player. Its proven capabilities in executing Transmission Lines up to 1,200 kV including HVDC projects lines up to 800 kV, large size Substations Air Insulated up to 1,150 kV, Gas Insulated up to 765 kV, Hybrid Substations up to 220 kV and Underground Cabling up to 220 kV coupled with strong customer trust and focus on execution excellence, positions it well in an energy landscape

increasingly defined by efficiency, sustainability and scalability.

Globally, the energy infrastructure market is entering a high-growth cycle. According to International Energy Agency (IEA) and Bloomberg NEF (BNEF) estimates, annual investments in electricity grids are expected to exceed USD 600 billion by 2030. These investments are driven by increasing renewable integration, grid stability requirements and regional interconnectivity. Demand for comprehensive EPC capabilities is expected to rise sharply across high-growth regions, including the Middle East, Africa and the Americas.

The Company secured multiple projects across the UAE, Saudi Arabia and Oman, including its largest-ever international substation order in the UAE. With national programmes such as Saudi ArabiaRss Vision 2030, UAERss Energy Strategy 2050 and OmanRss green hydrogen and interconnection initiatives, the GCC region is expected to attract over USD 250 billion in

T&D investments over the next decade. KECRss strong local presence, track record, deep understanding of the market position it well to capitalise on these opportunities. Execution highlights included the 132 kV MNAZILNH underground cable project for DEWA and the 220/400 kV overhead transmission line in Abu Dhabi, delivered three months ahead of schedule.

Africa faces critical gaps in electrification, particularly in Sub-Saharan regions. Despite a temporary dip in investments, multilateral programmes continue to fund essential projects for rural electrification and grid upgrades. The African Development Bank estimates the need for over USD 100 billion in T&D investments by 2030. During FY25, the business has delivered seven projects across five countries, aggregating over 1,030 KM, while navigating complex terrain, regulatory frameworks and logistical challenges. The CompanyRss capabilities have made it a trusted partner of choice in AfricaRss evolving infrastructure landscape.

In South Asia, the Company continued to maintain its presence in key markets such as Nepal and neighbouring regions. Projects in Nepal were recognised by SAPDC for achieving zero-incident execution, supported by the use of drone-based stringing in hilly terrain. In Southeast Asia, KEC completed transmission line projects in Malaysia, including the Bunut-Medamit line, which received the HSE Excellence Award (Silver Category). The Company also marked its re-entry into Australia after a decade, securing a significant tower supply order. With Southeast Asian nations expected to invest heavily in grid upgrades and renewable integration, KEC is evaluating upcoming

opportunities across the Philippines, Thailand, Malaysia and Indonesia.

The CIS region, including countries like Moldova, Turkmenistan, Armenia and Uzbekistan, is undertaking important infrastructure modernisation, especially in the energy and transport sectors. Moldova is progressing with its Energy System Development Project to modernise its grid, improve energy security and integrate renewables. Uzbekistan and Turkmenistan are investing in upgrading power transmission and enhancing regional grid connectivity.

SAE Towers, KECRss wholly-owned subsidiary with manufacturing bases in Brazil and Mexico, recorded revenues of Rs 1,325 Crore in FY25 and secured its highest-ever order intake of over USD 276 million, registering over 150% year-on-year growth. In Brazil, SAE secured orders worth USD 164.7 million, including its first tower supply order in Uruguay and a major hardware contract for a 1,468 km 800 kV HVDC project in Chile. In Mexico, the Company achieved record order intake of USD 111.4 million, with orders from leading utilities in the US and Mexico.

In the US, transmission investments are accelerating, with over USD 100 billion projected by 2030. SAE is well-positioned to meet this demand with its proximity to US utilities, nearshore manufacturing and expanded hardware capacity. To support this growth, KEC expanded its hardware manufacturing capacity and invested in automation technologies, including automatic welding and robotic fabrication, enhancing product quality, safety and reliability. These initiatives have positioned SAE as a preferred supplier of complex tower, pole structures and hardware.

During the year, KEC also secured sign if cant tower supply orders across the Middle East, the Americas and Australia, while continuing to prioritise internal supply for EPC projects.

KECRss ability to deliver complex projects across diverse geographies is strengthened with local project teams and sustained investments in engineering and operational excellence. The Company continues to play a key role in addressing global infrastructure demands with a focus on safety, sustainability and technology integration.

CIVIL BUSINESS

KECRss Civil business focusses on a diverse range of projects across sectors including factories, buildings, public spaces, water pipelines, water treatment plants, data centres, hospitals, logistics and warehouses for both private and government clients. During the year, the business has delivered revenues of Rs 4,483 Crore and has deepened its capabilities across key segments. The business continues to move up the value chain from standalone civil packages to end-to-end EPC contracts. Positioned for significant growth, the business boasts an unexecuted order book of over Rs 8,600 Crore and benefit from favourable market tailwinds.

IndiaRss robust economic growth continues to fuel infrastructure investments, with the Government allocating Rs 11.21 lakh Crore for CAPEX in the Union Budget 2025 and reinforcing its commitment to the Viksit Bharat 2047 vision. Several ambitious projects and key policy enablers such as the National Infrastructure Pipeline, PM Gati Shakti Plan, National Monetisation Pipeline (NMP) 2.0 and updated Public-Private Partnership (PPP) guidelines are set to accelerate project deliveries across critical infrastructure sectors and unlock new funding channels. As per ICRA, the Indian construction sector is poised to grow by 10% in FY26. This growth is driven by robust investments across urban infrastructure, transport infrastructure, industrial, real estate both residential and commercial and social infrastructure. The rising demand for metros, logistics hubs, industrial parks, housing, affordable as well as premium, IT parks, GCCs, data centre, hospitals, educational institutes, community spaces, etc. creates a diversified project pipeline, offering EPC players opportunities to expand their footprint and contribute significantly to the countryRss infrastructure growth story.

The Indian real estate segment, comprising housing, retail, hospitality

and commercial, has been playing a pivotal role in IndiaRss growth journey. As per India Brand Equity Foundation (IBEF), IndiaRss real estate market is expected to reach USD ~1 trillion by 2030 and has the potential to reach USD 5 - 7 trillion by 2047, backed by the growth in demand for urban and semi-urban accommodation as well as for office spaces. The Company has significantly strengthened its position in the residential segment and executing over 70 high-rise residential tower projects for top real estate developers in the country. The Company is going from strength to strength and is now executing super high-rise buildings with premium finishing works. Recently, the Company has won a marquee order for constructing a premium 70+ storey building in a residential suburb of Mumbai. Company has cemented its presence in major real estate markets including Mumbai, Pune, Hyderabad,

Delhi-NCR, and Bengaluru,

while continuously diversifying and expanding its residential and commercial building portfolio.

The commercial real estate segment is experiencing a surge in demand with major contribution from key segments such as Global Capability Centres (GCC) and Office Spaces (driven by IT/ITES and startups). India has continued to be a preferred destination for GCCs with 120 new GCCs planned in FY26, leading to expected addition of 45-50 million sq ft of office space. The market is projected to reach USD 106 billion by 2029, with a compounded annual growth rate of 21.1% from 2024 to 2029. This year, our execution of commercial projects exceeding 30,00,000 square feet in built-up area significantly strengthens our position to meet the escalating demand for commercial spaces, particularly in the airport and healthcare sectors, across India.

IndiaRss data centre market is also experiencing rapid expansion, driven by surging demand for cloud services, AI adoption and digital transformation. Lower cost of setting up a data centre in India and good connectivity through under-sea fibre infrastructure has made India competitive and reliable location to set up data centres. According to Crisil, the Indian data centre industryRss capacity is set to more than double to 2-2.3 GW by FY27 requiring an investment of Rs 55,000 - 65,000 Crore. The Company has delivered 2 large data centres and is in advanced stages of execution of 3 other projects aggregating to over 60 MW of capacity. The company is working with marquee names in the industry and has established itself as a reliable EPC partner with strong execution capabilities tailored for the data centre segment.

In the industrial segment, the business has a presence across key sectors including Metals & Mining, Cement, Auto, Chemicals, FMCG, and

Paints. The business has deepened its capabilities to deliver end-to- end Engineering, Procurement and Construction (EPC) projects including installation of complex electromechanical equipment and systems. The business has recently won a prestigious order to build a semiconductor plant, reinforcing rising trust in KECRss quality, reliability and timely delivery. The sector will be a key growth driver for the Company as industrial CAPEX is anticipated to be ~65% higher than that during FY 2021-25, driven by increasing corporate capex in segments such as energy, auto, industrials, metals & mining and electronics. Steel sector itself is expected to attract an investment of ~Rs 4.6 Lakh Crore with plans to increase the steel capacity to 300 MT by FY30.

The Water segment continues to be a critical pillar of IndiaRss infrastructure growth, with strong policy support and investment momentum. The GovernmentRss Jal Jeevan Mission

is now extended through 2028 with a budgeted outlay of Rs 67,000 Crore for FY26. In parallel, AMRUT 2.0 is driving urban water transformation with a planned investment of Rs 2.99 lakh Crore across 500 cities. These initiatives offer significant EPC opportunities to deliver sustainable and scalable water infrastructure. KEC is actively engaged in executing multiple large-scale water pipeline and supply scheme projects involving over 13,000 KM of pipeline, 14 Water

Treatment Plants (WTPs) and more than 850 elevated and ground-level reservoirs, intake wells, etc. to supply safe and adequate drinking water to more than six lakh households in states of Odisha and Madhya Pradesh.

The business is also exploring opportunities in the international markets with a focus on social infrastructure, such as water, healthcare and public spaces. The business is prioritising countries in the regions such as Middle East and Africa, where KEC has a strong presence and deep understanding of the market on the back of its Transmission & Distribution business.

The Company remains focussed on ensuring a safe and healthy work environment, highlighting its steadfast

commitment to operational excellence and stakeholder satisfaction. In FY25, the Civil business achieved 68 million safe man-hours, an 8% increase over the previous year. The Company received multiple recognitions for its safety and sustainability practices, including the “Sustainable Organisation of the Year” award at the Net Zero Summit, National Road Safety award and accolades from RoSPA, the British Safety Council and the Indian Concrete Institute.

The Company prioritises the use of advanced technologies, while continually developing its design and engineering capabilities and driving execution excellence. By integrating digital solutions such as Building Information Modelling (BIM), document management platforms, AI-powered

business development, asset tracking and management tools, concrete management systems and IoT and fuel monitoring for mobile assets, the Company demonstrates its strong commitment to leveraging technology to drive execution excellence. These efforts strengthen its value proposition and position it as a leader in technological innovation within the construction sector.

With a strong diversified order book and consistent execution track record, KEC is well-positioned to service the needs of the clients across the key Civil business. The business will continue to focus on execution excellence, sustainable construction practices and digital transformation to drive long-term stakeholder value and support IndiaRss nation-building efforts.

TRANSPORTATION

The rechristening of the Railways vertical to “Transportation” marks a strategic shift towards a broader, future-ready portfolio that now includes conventional railways, urban transit systems and ropeways. This repositioning reflects KECRss deepened commitment to enabling next-generation transportation

ecosystems that are safer, smarter and more sustainable.

The business has been actively engaged in the modernisation and upgradation of Indian railways through its EPC capabilities in infrastructure development across overhead electrification (OHE), track laying, construction of railway bridges, stations, workshops and tunnel ventilation, gauge conversion, safety upgradation such as automatic block signalling (ABS), train collision avoidance system - KAVACH and electronic interlocking. The business also offers EPC services in Metro rail across civil construction for

elevated viaducts, stations, depots, power supply systems, Over Head Electrification as well as 3rd rail electrification and ballast less track laying.

Given IndiaRss growing population, accelerating urbanisation and rising economic activity, industry estimates project the Indian transportation infrastructure market to grow to USD 224.85 billion by 2030, at a CAGR of 7.76%. This growth is being driven by national programmes such as Gati Shakti and the National Infrastructure Pipeline (NIP). The Union budget for FY26 allocated Rs 2.65 lakh Crore for railway and transport infrastructure, with an emphasis on high-traffic corridors, port and mineral connectivity and multimodal logistics.

In FY25, KEC recorded an order intake of ~ Rs 2,200 Crore across various segments. The business successfully forayed into Ropeway transportation with an EPC project in North-East India. The Company remained measured in its bidding strategy, given increased

competition in the conventional railway sector and execution challenges owing to dependence on availability of blocks by Indian railways. Most of the orders secured during the year do not involve execution on existing main line tracks.

Electrification remains a national priority as Indian Railways targets 100% electrifi cation by FY26 to reduce diesel dependence and carbon emissions. In FY25, KEC played a key role by electrifying 809 TKM (Track Kilometers) of 25 kV and 1,172 TKM of 2x25 kV systems, the latter being vital for high-density corridors.

Safety has emerged as a key focus area for Indian Railways, with significant investment directed towards technologies such as KAVACH, IndiaRss indigenous Train Collision Avoidance System, Automatic Block Signalling and Electronic Interlocking. In FY25, KEC commissioned ~80 KM of ABS and deployed KAVACH across 359 TKM.

Urban transit has become a cornerstone of IndiaRss transportation landscape, with over 20 cities now operating metro networks and several more in planning or construction phases. KEC is actively executing a wide array of metro system projects in cities including Delhi, Chennai, Mumbai, Bengaluru, Kochi, Ahmedabad and Bhopal. In FY25, the Company handed over 28+ KM viaducts in DMRC & CMRL projects. All erection works for both projects, totalling 1,989 elements, were safely completed in March. Trial runs on the ECV-02 corridor in CMRL commenced in April 2025.

Tunnel infrastructure is also emerging as a critical enabler in the transportation sector, driven by the rise of underground metro lines, hilly region rail corridors and high-speed rail connectivity. In FY25, KEC successfully delivered its first turnkey tunnel ventilation project in Jammu & Kashmir, enhancing its credentials in the electromechanical (E&M) segment.

Ropeways are gaining prominence as a sustainable solution for mobility in hilly

terrains, congested urban areas and tourism hubs, with over 250 projects announced under the Parvatmala scheme. In FY25, KEC secured its first ropeway EPC order in Northeast India, marking its entry into this emerging domain. With strong project execution experience in mountainous geographies in the erection of the towers and stringing of transmission lines, the Company is well-positioned to scale its presence in this space.

As part of its diversification strategy, the business is also actively focussing on international opportunities in the Middle East and Africa. With several countries in the Gulf Cooperation Council (GCC) and Africa investing in railway and metro infrastructure, international markets present a promising growth avenue. We are progressing prudently on our first project in SAARC region, in line with the emerging situation on the ground.

Overall, the business is focussing on strengthening engineering and execution capabilities to reduce costs, shorten delivery timelines and optimise working capital. The company is

committed to diversifying the portfolio and deepen the presence in emerging technology-intensive segments of the transportation ecosystem, in both India as well as international markets.

OIL & GAS PIPELINES BUSINESS

KEC InternationalRss Oil & Gas Pipelines business focusses on end-to-end execution of cross-country pipelines, including associated station works with integrated mechanical, electrical and instrumentation systems, for crude oil, natural gas and petroleum products. The business is also executing iron ore slurry pipelines and water distribution pipelines.

During the year, the business recorded a decline in revenues compared to the previous year. This moderation was primarily due to subdued market in the financial year FY24 and FY25 although the long-term outlook remains healthy. The Government of India has set a target of expanding the natural gas pipeline network to over 34,000 KM by 2028, up from the current 23,000 KM driven by rising energy demand and the need to enhance fuel transportation effi ciency. Further, planned augmentation in refining capacity from 256 MMTPA to 310 MMTPA by 2028 will necessitate large investments in crude and product pipelines across the country. A similar momentum is visible globally, where countries are investing heavily in energy logistics, export pipelines and associated infrastructure to promote energy security.

During the year, the business focussed on strengthening the foundation by building capabilities and qualifications for delivering future growth. One of the significant accomplishments was securing its first pipeline EPC contract for supplying and laying pipelines in gas gathering fields. Additionally, the business also secured an EPC order for station works in international market. These projects, upon completion, will enable the business to establish necessary EPC qualifications for pipeline works.

The business is also focussing on accelerated completion of existing project to improve the qualifications. Notable progress was made on a major 18-inch cross-country pipeline extending over 150 KM, which is targeted for completion in first half of FY26. Successful completion of this project will significantly enhance the CompanyRss pre-qualification credentials, enabling participation in higher-diameter pipeline tenders and unlocking access to larger-value hydrocarbon pipeline projects. Similarly, a large composite station project involving complex mechanical and electromechanical systems is progressing on schedule, with delivery anticipated in the second quarter of FY26. Qualification from this project is

expected to reinforce the CompanyRss capabilities in high-potential segments such as refinery offsite works, gas gathering stations and LNG terminal infrastructure.

Execution is progressing well on the CompanyRss first international pipeline project in Africa. This project represents a significant milestone in the CompanyRss international diversification efforts and is expected to support future bids in

select overseas markets through demonstrated execution capabilities.

Globally, several energy players are announcing substantial investments in pipeline infrastructure. Saudi Aramco is expected to release approximately ~3,000 KM of pipeline contracts as part of Master Gas Pipeline system over the next few years. Further, significant investments of about USD 25 - 30 billion are being planned for crude and natural gas pipelines forming the East-West corridor and rehabilitation projects in various oil / gas fields. In UAE, ADNOC is expected to invest USD 55 - 60 billion, including USD 10 - 15 billion in pipeline projects, in upcoming LNG infrastructure, downstream plants, hydrogen and carbon capture projects to enhance export capacities targeting Asia and Europe markets.

In line with the strategic objective to expand in international markets, the business has intensified market development efforts in the Middle East and other focus regions. It has expanded its business development footprint, strengthened local teams and is progressing well on several key vendor registrations and technical pre-qualifications with major international oil companies. The business is discussing several upcoming pipeline and station works projects with potential clients, positioning the business favourably for future growth in the international energy infrastructure market.

The business, in line with the strategy of diversification, is also exploring opportunities in mechanical & piping works in process plants as well as new opportunities in iron ore slurry pipeline projects in India as well as international markets. More and more iron and & steel players are realising the importance and benefits of iron ore slurry pipelines and are considering sizeable investments to make the iron ore transportation more efficient and less polluting. These segments present significant synergy with existing pipeline execution expertise.

The business is also investing in strengthening its execution capabilities through the adoption

of digital technologies and building a robust safety culture. The business is leveraging digital project planning & management solutions, vehicle telematics, AI based opportunity identification solution and predictive analytics to streamline tendering activities and to drive execution excellence. Focussed initiatives in Environment, Health and Safety (EHS) continue to be a priority, with a strong emphasis on aligning with global benchmarks. This commitment is essential to qualify for large-scale international EPC contracts and to ensure safe and responsible operations in varied environmental conditions.

With a robust pipeline of upcoming projects, enhanced technical

qualifications and an expanding international presence, KECRss Oil & Gas Pipelines business is well-positioned for growth.

CABLES & CONDUCTORS BUSINESS

The Cable & Conductors business achieved its best-ever performance in terms of order intake, revenues and proftability in FY25. The business delivered an order intake of Rs 2,212 Crore, registering a strong 15% year-on-year growth. Building on this momentum, the business achieved all-time high revenues of Rs 1,805 Crore, driven by enhanced capacity utilisation and strong performance across key segments such as transmission & distribution, renewables, industrials, metals and data centres. Profitability is driven by scale efficiencies, improved cost structures and a well-diversified product portfolio that includes extra-high voltage (EHV), medium and low voltage power cables, telecom and instrumentation cables, transmission and railway conductors, as well as specialised offerings such as solar, mining, EV, green and hybrid cables.

With the Indian cables and wires industry projected to grow at a CAGR of 14% and the market expected to exceed Rs 3.5 lakh Crore by 2032, the long-term growth outlook remains robust. To capitalise on the market growth, the company subsidiarised

its Cables Business under the newly formed KEC Asian Cables Limited, effective January 1, 2025. This move enables optimal capital allocation, enhances operational flexibility

and allows the business to secure funding on more favourable terms, supported by its strong credit profile, continuing to benefit from the strength of the KEC brand, shared systems and its expansive global reach. This realignment is expected to drive sustained growth in both revenue and profitability.

The business is poised to drive its next phase of growth through establishment of new production capacities, a further diversified product mix, enhanced market access and continued geographical expansion.

A key milestone in FY25 was the commissioning of a new Aluminium Conductor Plant in Vadodara, which commenced production across multiple categories, including AL-59. This expansion aligns with the rising demand for aluminium transmission conductors, driven by interregional transmission corridors and renewable energy integration. The plant marks a strategic backward integration

for KEC, with KEC Asian Cables Ltd. now manufacturing conductors in-house, enhancing supply chain reliability and cost efficiency. The facility is expected to contribute Rs 500-600 Crore in additional annual revenue for the Cables Business, potentially driving over 20% growth. As a part of its broader capex expansion, construction is also underway for a new e-beam and elastomeric cable manufacturing facility, targeted for commissioning by FY26. This plant will cater to high-performance applications across defence, automotive and railway sectors, where superior durability and thermal resistance are critical.

Additionally, the business is investing in the expansion of its PVC compounding unit to improve margins through better cost efficiency and reduced dependency on external suppliers. Further, the business is actively pursuing development of new and innovative products. During the year, eight new products were developed as part of this innovation drive. A key highlight was the successful development and supply of Copper Silver (Cu-Ag) Contact Wire, which received approval from the Delhi Metro

Rail Corporation (DMRC) and has since been commercially deployed. This development also contributes to import substitution, in line with the vision of Atmanirbhar Bharat. The business is also advancing its sustainability agenda, with efforts underway to develop fire-safe and green cable solutions. A notable milestone was becoming the first Indian cable manufacturer to receive GreenPro certification for its green cable product line, demonstrating KECRss commitment to environmentally responsible manufacturing.

During the year, the business made progress in expanding its presence in the dealer channel. This growth was supported by deeper market engagement and stronger dealer relationships, enabled through tailored processes and service models suited to this channel. These efforts are realigned with the broader strategic direction of the business.

The business continues to expand its footprint in the exports market, having supplied cables to regions including

Europe, Americas, Middle East, Africa, SAARC, CIS, Oceania, etc. in FY25. The year marked a significant breakthrough in its global aspirations with successful entry into the United States, a vast and strategic export market. This milestone was achieved with the despatch of UL-certified cables, reinforcing its capability to meet world-class standards.

With a strong operational foundation and continued investments in capacity enhancement and new product development, the Cables Business is well-positioned to meet the growing demand - both in India and globally - for high-performance, reliable and sustainable cable and allied solutions. As infrastructure sectors worldwide transition toward digital, clean and efficient energy systems, the business is equipped to power this shift through its commitment to innovation, quality and customer-centric execution.

RENEWABLES BUSINESS

In FY25, KECRss Renewables Business delivered a standout performance across all key metrics, with strong growth in revenue, order intake and profitability. Revenues reached over Rs 850 Crore, reflecting a robust year-on- year growth of ~92%, driven by a sharp focus on execution and the sectorRss underlying momentum. Order intake rose sharply to Rs 851 Crore, marking a remarkable over 500% increase over the previous year and highlighting the businessRss expanding market reach. The business delivered strong operational performance supported by operational efficiencies and disciplined project delivery.

Globally, renewable energy sector continued its rapid expansion in FY25, driven by rising demand and the growing urgency for sustainable energy solutions. The year marked a historic milestone, with a record 741 GW of new capacity added, led by solar energy at 602 GW and wind energy at 117 GW.

In India, renewable energy sector continues to grow rapidly, supported by favourable government policies and increasing demand. Government agencies like SECI, NTPC, NHPC and SJVN issued tenders totalling approximately 44 GW in FY25, refecting strong policy support for renewable energy. New formats such as Firm and Despatchable Renewable Energy (FDRE), Round-the-Clock (RTC) power and hybrid projects are gaining traction. In addition, Battery Energy Storage Systems (BESS) are becoming important components of these projects, helping to manage the variability of solar and wind power and ensure consistent energy supply. Overall, these varied project formats aim to enhance grid reliability and support IndiaRss goal of achieving 500 GW of non-fossil fuel capacity by 2030.

As of March 2025, IndiaRss installed solar capacity reached 105 GW, with ground-mounted installations contributing 81 GW. Solar now accounts for over 21% of the countryRss total power capacity, refecting its growing role in the energy mix. With a national

target of 250 GW by 2030, the sector is expected to sustain double-digit growth. The market size is projected to reach Rs 40,000-45,000 Crore in FY26 for EPC players, driven by rising demand and policy support. With module capacity doubling to 74 GW and cell capacity tripling to 25 GW in FY25, domestic solar manufacturing is reducing import dependence, strengthening supply chains and enabling faster, cost-effective project execution, all key to sustaining sector growth.

In parallel with the growth in solar energy, IndiaRss wind sector is also showing signs of renewed momentum. Total installed wind capacity reached 50 GW, with 4 GW added during FY25. The entry of new OEMs and approval of larger turbine models are paving the way for accelerated growth. To further promote wind energy across the country, the government is encouraging private sector participation through various fiscal and financial incentives, including Accelerated Depreciation benefits and concessional customs duty exemptions. These supportive measures are driving increased private sector participation

and are expected to propel the market size to Rs 7,000 - 8,000 Crore in FY26 for EPC players.

Green hydrogen is emerging as a strategic long-term bet in the clean energy space. While its potential is widely recognised, current cost structures remain prohibitive, making commercial viability a challenge. Scaling up local electrolyser manufacturing and driving technological innovation will be essential to reduce costs and enable broader adoption. Although the segment is still in its early stages, policy support under the National Green Hydrogen Mission is steadily improving, laying the foundation for gradual market development over the coming years.

KECRss Renewables business, is currently executing over one GW of solar capacity across multiple projects. During the year, the business further strengthened its execution capabilities, enabling efficient delivery of large-scale orders exceeding 500 MWp. These advancements have reinforced the companyRss position as a trusted EPC partner, with successful collaborations with reputed clients such

as NTPC-REL and IRCON. The business is also actively exploring opportunities with leading Independent Power Producers (IPPs) to further expand addressable market.

A key competitive advantage lies in KECRss in-house manufacturing and integrated execution capabilities. It is equipped to build substations and execute power evacuation through its Transmission and Distribution SBU, which has expertise in tower erection and transmission line construction. This end-to-end capability, from supplying cables to building substations and transmission infrastructure, enables the business to deliver projects efficiently, cost-effectively and at scale. Backed by a healthy order book, marquee client relationships and a clear strategic roadmap, KEC Renewables is well-positioned to play an active role in IndiaRss clean energy transition. As India accelerates its clean energy transition, the business remains committed to delivering impactful solutions and capturing emerging opportunities across solar, wind and green hydrogen.

FINANCIAL PERFORMANCE

Analysis of Profit and Loss statement and Balance Sheet, including the key ratios based on consolidated results, is mentioned as follows:

PROFIT AND LOSS STATEMENT ANALYSIS

Revenue for FY25 stands at Rs 21,847 Crore with a healthy growth of 10% Y-o-Y. This growth was primarily driven by the T&D businesses, both in India and International, as well as strong performances in the Renewables and Cables businesses.

In terms of EBITDA, we have delivered a substantial growth of 26% Y-o-Y with EBITDA margins expanding by 90 bps to 7.0% in FY25 vis-avis 6.1% in FY24.

CompanyRss PBT has increased by 71% to Rs 727 Crore in FY25 as against Rs 426 Crore in FY24 and PAT has also increased to Rs 571 Crore in FY25 as against Rs 347 Crore in FY24.

The interest cost to sales ratio decreased to 3.0% in FY25 from 3.3% in FY24, primarily due to a reduction in gross debt, despite an increase in revenue.

Earnings per Share (EPS) increased to Rs 21.80 in FY25 from Rs 13.49 in FY24.

Recommended a Dividend of Rs 5.5 per equity share i.e. 275% of the face value of Rs 2 each for FY25 - Total outflow of Rs 146.41 Crore.

BALANCE SHEET ANALYSIS

Net Worth increased to Rs 5,347 Crore in FY25 from Rs 4,096 Crore in FY24. The Company raised Rs 870 Crore through a Qualified Institutional Placement (QIP) by allotting 91,11,630 equity shares of face value Rs 2 each to eligible investors at an issue price of Rs 955 per equity share (including a premium of Rs 953 per equity share). Post-allotment, the total number of equity shares stands at 26.62

Crore and equity share capital is at

53.24 Crore. Reserves and Surplus increased to Rs 5,294 Crore in FY25 from Rs 4,044 Crore in FY24.

Book Value per share increased to Rs 201 in FY25 from Rs 159 in FY24.

Gross Borrowings decreased to Rs 3,707 Crore in FY25 from Rs 3,802 Crore in FY24. The Debt-Equity Ratio has improved to 0.7 in FY25 from 1.0 in FY24.

KEY FINANCIAL RATIOS

Key Financial Ratios (1)	2024-25	2023-24	Change (%)
Debtors Turnover Ratio (No. of Days)	81.0	83.1	-3%
Inventory Turnover Ratio (No. of Days)	33.3	37.5	-11%
Interest Service Coverage Ratio	2.1	1.8	17%
Current Ratio	1.2	1.1	9%
Debt Equity Ratio	0.7	1.0	-24%
Operating Profit Margin % *	7.0%	6.1%	15%
Net Profit Margin %	2.6%	1.7%	50%
Return on Net Worth %	12.1%	8.8%	37%

Operating profit for FY25 includes an amount of Rs 24 Crore, received towards an arbitration award in Q1 FY25

• Net Profit Margin and Return on Net Worth have improved due to an increase in profits during the year.

• There were no other significant changes (25% or more) in any of the above key financial ratios.

1 Assessment of key ratios has been derived at as follows:

• Debtors Turnover Ra tio= (A verage Accoun t Receivable/Total Revenue from op era tions) x No. of Days.

• Inventory Turnover Ratio= [Average Inventory/ (Cost of material consumed + Changes in inventories of finished goods, work-in-progress+ Erection and construction material consumed + Stores consumed)] x No. of Days.

• Interest Service Coverage Ratio = (Profit After Tax + Depreciation and amortisations + Interest + Loss on sale of Fixed assets) / Finance Cost.

• Current Ratio = Current asset/ Current liability.

• Debt Equity Ratio = Total Debt (Short-Term Debt + Long-Term Debt + Interest Accrued but not due + Lease Liability) / Total Equity

• Operating Profit Margin % = (Profit before Depreciation and Amortisation, finance costs, Tax less Other Income) / Total Revenue from operations

• Net Profit Margin = Profit for the period / Total Revenue from operations.

• Return on Net Worth % = Net Profit After Tax/Average Net Worth (Total Equity including all reserves)

INTERNAL CONTROL ADEQUACY

At KEC, Internal Control serves as a fundamental pillar of Corporate Governance. The Company has established a robust Internal Control system tailored to its evolving operational requirements. This framework is integrated with the ERP platform, SAP and is designed to safeguard assets, enhance operational efficiency, monitor key processes and ensure compliance with applicable laws and regulations.

KECRss Internal Control framework is designed to refect the scale, complexity and dynamic nature of its operations at the entity and at the process levels. It supports the generation of accurate, reliable and objective financial and operational information. The Internal Audit function conducts comprehensive audits across all key business functions and locations, with a strong focus on operational efficiency and the effectiveness of control systems. A structured audit cycle ensures that every major area of the Company is reviewed at least once every three years.

The function provides independent assurance on a wide spectrum of risks including strategic, operational, financial, compliance and safety-related aspects, across all business segments. Insights and actionable recommendations are periodically shared with both management and the Audit Committee. The Audit Committee actively reviews the effectiveness of the Internal Control systems, offers oversight and direction for corrective actions and encourages the adoption of external benchmarking and industry best practices to strengthen governance and risk management.

During FY25, key internal audit findings along with the status of implementation of recommended actions were regularly presented to the Audit Committee. The Committee reviewed these updates and expressed satisfaction with the adequacy and effectiveness of the CompanyRss internal control systems and procedures.

Employees are guided by the RsRPG Code of Corporate Governance & EthicsRs, which refects and reinforces the unique corporate culture and values prescribed by KEC and the RPG

Group. The Internal Control system includes a whistle-blower mechanism, which encourages directors, employees and third parties to report genuine concerns, misconduct, or fraud without fear of unfair treatment or punishment. In exceptional cases, they have direct access to the Chairman of the Audit Committee.

ENTERPRISE RISK MANAGEMENT

The Company works predominantly in the Engineering Procurement and Construction (EPC) business and has developed robust risk management processes. With widespread operations across multiple countries, the Company faces various risks associated with turnkey projects, whose long-term success largely depends on the existence of a robust risk identification and management system that helps identify and mitigate various risks.

KECRss robust risk management framework works at various levels across the Company and mandates periodic reviews of its systems to ensure they are in line with current internal and external environments.

Some of the enterprise-level risks identified by the Company and the mitigation measures being implemented are:

1. Geopolitical Risks:

Unexpected political unrest or

changes in some of the developed/

developing countries are some of the risks which can disrupt supply chain & impact the execution/ progress of its projects.

Mitigation: The Company

actively monitors geopolitical and operational risks and formulates appropriate mitigation strategies. These strategies include assessing the viability of continuing operations in affected regions, exploring alternative strategic sourcing options and evaluating the potential impact of conflicts or disruptions, ensuring the benefits with ECGC, etc. Based on these assessments, the Company develops and implements action plans to effectively manage and overcome such risks.

2. Commodity Price Variations:

The Company deals with various commodities, such as steel, zinc, copper and aluminium. Fixed price contracts may have a negative impact on the CompanyRss profits if input costs rise without proper hedging mechanisms.

Mitigation: The Company

adopts a prudent approach to managing commodity exposure by maintaining optimal hedge levels. These risks are centrally monitored and managed, with periodic reviews conducted at appropriate management levels to ensure effective oversight. In certain projects, the project materials are supplied by the customer and any price escalation is also borne by them.

3. Cyber Security:

Cyber-attacks and threats may impact the security of IT infrastructure and critical IT assets of the Company.

Mitigation: The Company has implemented robust cybersecurity measures to safeguard its IT infrastructure. Antivirus protection and firewall systems are in place to prevent cyber threats, with logical segregation maintained between OT and IT networks across all locations. Advanced Security Operations Centre (SOC) services

have been deployed to monitor and automatically neutralise network intrusions in real-time. Recommendations from external IT security audits are regularly implemented to enhance the overall security framework. Additionally, an Endpoint Detection & Response (EDR) system has been adopted to proactively identify and block malware based on behavioural analytics.

4. Execution Challenges:

The Company faces execution challenges such as geological surprises, land acquisition and Right of Way (RoW) issues, pending approvals and clearances from Government agencies, working in difficult terrains, manpower issues, etc.

Mitigation: The Company

adopts a proactive and systematic approach to project risk management, continuously monitoring risks specific to each project and implementing timely mitigation strategies. Advanced technologies are employed to assess terrain and soil conditions at project sites, enabling informed decision-making and efficient planning. To enhance execution efficiency and quality, the Company has implemented various initiatives focussed on mechanisation, automation

and digitisation across its project portfolio. Additionally, proactive steps have been taken to address workforce-related challenges, ensuring

uninterrupted project progress and operational excellence.

5. Demand Risk:

Infrastructure investment

slowdown can lead to lower order intake and lower sales.

Mitigation: The CompanyRss

strong and widespread global footprint enables it to mitigate the impact of investment slowdowns in any single country or region. Its substantial presence in several underdeveloped and emerging economies, where infrastructure

development continues to be a cornerstone of sustainable growth, provides a resilient foundation for continued operations. Additionally, the CompanyRss well-diversified business portfolio, encompassing Substations, Railways, Civil, Solar, Urban Infrastructure, Oil & Gas Pipelines, Smart Infrastructure and Cables, positions it to capitalise on a broad range of future growth opportunities across multiple sectors and geographies.

6. Foreign Currency Fluctuation Risk:

With operations in many geographies, any adverse movement in any currencies can adversely impact project profitability and financials.

Mitigation: Foreign exchange risk is tracked and managed based on the approved Risk Management Policy. Tenders are generally quoted in hard currencies and other currencies based on the currency of import to maintain a natural hedge. Currency exposure is monitored on a monthly basis and hedged on a net basis.

7. Environment, Health & Safety:

Environment, health and safety risk impacting employees and workers.

Mitigation: Environment, Health and Safety (EHS) is embedded into the Key Responsibility Areas

(KRAs) of various functional teams to ensure accountability and continuous focus on safety performance. Dedicated safety officers are deployed at project sites and regular audits are conducted by the Corporate Safety Audit team to assess compliance and identify areas for improvement. The findings from these audits are reviewed during monthly EHS Steering Committee meetings to drive corrective actions. In addition, Behaviour-Based Safety (BBS) training programmes are implemented to cultivate a safety-first mindset and encourage proactive accident prevention across all levels of the organisation.

HUMAN RESOURCES:

In FY25, KEC International continued to strengthen its position as a people-first organisation, driven by the belief that happy, empowered employees are central to sustained business performance. Anchored in the RPG Groups “Hello Happiness” philosophy, the Company took significant strides in enhancing employee experience, building future-ready talent and fostering an inclusive and high-performance culture across its global operations.

The year witnessed a measurable rise in employee satisfaction, with the Happiness Quotient reaching 84%, up by 1% point from the previous year and 3% points over two years. This improvement reflects the CompanyRss structured efforts in driving employee engagement, ensuring well-being and building a purpose-driven culture. A dedicated Happiness Council, supported by regular action planning workshops, continues to drive improvements in employee experience, with a target to achieve an 85% Happiness Quotient by FY26.

At the core of KECRss culture are the six EXCITE pillars: Execution Excellence, Happiness, Customer-Centricity, Inclusive & Diverse Global Mindset, Technology & Engineering Mindset and Empowerment & Trust. These principles shape everyday interactions and leadership behaviour across the organisation.

FY25 was a year of significant investment in talent and leadership. KEC hired 1,500+ talents, including 40+ leadership hires across levels. The Company continued to focus on scalable lateral hiring and campus outreach, onboarding 159 ELT/PGELT engineers and 19 GMRs (Graduate Management Resources). With these additions, the total strength of the ELT/PGELT/GMR cohort stands at approximately 780 employees, creating a strong pipeline of future leaders aligned with the Groups vision of “Unleashing Talent”.

Diversity and inclusion remained a strategic priority in FY25, with a 22% increase in diversity over the previous year and women now comprising 7.1 % of the workforce. Several initiatives were launched to reinforce this agenda, including BRIDGE (Building Relationships, Inclusion, Diversity, Growth and Equity), a structured platform to promote equity and inclusion. An in-house grievance redressal system, WeCare, was introduced to support women at project sites, while Her Space, a monthly webinar series for women, fostered dialogue and development. KECRss diverse workforce today spans over 40 nationalities, underscoring its truly global presence and inclusive ethos.

Employee well-being continued to be championed through KECARES 2.0, a flagship wellness programme offering curated sessions across

physical, emotional and financial health. The Company also introduced a standardised Rewards and Recognition platform - RACE, through which 69 individuals and 89 teams were formally recognised

during the year for their outstanding contributions, reinforcing a culture of appreciation and performance.

Learning and development remained integral to talent growth. In partnership with RPG Corporate University and various internal academies, the Company provided employees with ongoing functional and leadership development opportunities.

These programmes are designed to equip employees with the skills required to navigate an increasingly complex business environment, particularly in the EPC sector, which is witnessing rapid shifts in technology adoption, regulatory norms and sustainability expectations.

The EPC industry itself is undergoing a transformation, with growing emphasis on safety, digitalisation, multi-skilled workforces and sustainability integration. Amidst these changes, organisations are rethinking traditional hierarchical structures and embracing agile models that empower field teams, improve decision-making speed and foster cross-functional collaboration. KECRss EXCITE culture pillars, investment in digital platforms and future-focussed talent strategies are aligned with these evolving imperatives.

Digital transformation has been a key enabler of KECRss HR operations. The Company expanded the use of technology across the employee lifecycle - from recruitment and onboarding to performance management and engagement. The rollout of Electra, an AI-powered HR chatbot, has enhanced responsiveness and 24/7 support for employees, streamlining HR service delivery and improving accessibility.

Campus engagement remains a strong anchor of KECRss long-term talent strategy. The Company continues to be a top employer across premier engineering and business schools, reinforcing its brand through structured programmes like Engineering Leadership Trainee (ELT), Post Graduate Engineering Leadership Trainee (PGELT) and Group Management Resources (GMR). These programmes ensure early assimilation of talent into the business, offering accelerated learning and mentorship pathways.

As of March 31,2025, KEC, including its subsidiaries, employed 7,692 people globally. Each of these individuals plays a vital role in delivering the CompanyRss vision while embodying its values of innovation, collaboration and accountability.

KEC, with a focus on its purpose - “We transform lives by building sustainable world-class infrastructure”- remains committed to nurturing a vibrant, purpose-driven workplace. The focus continues to be on building leadership depth, strengthening diversity, leveraging digital tools and embedding employee happiness at the centre of the organisation. In doing so, the Company will continue to power not only its projects but also its people, enabling KEC to deliver sustainable, inclusive and high-impact growth.

CAUTIONARY STATEMENT

Statements in this report describing the CompanyRss objectives, expectations, predictions and assumptions may be Rsforward-lookingRs within the meaning of applicable Securities Laws and Regulations. Actual results may differ materially from those expressed herein. Important factors that could influence the CompanyRss operations include global and domestic economic conditions affecting demand, supply, price conditions, natural calamities, changes in the GovernmentRss regulations, tax regimes, other statutes and factors such as litigation and industrial relations.