Kalpataru Projects International Ltd Management Discussions

Economic Review

Global Economy¹

The global economy maintained a stable growth trajectory in CY2024, recording a GDP expansion of 3.3%, despite persistent headwinds from geopolitical tensions, trade disruptions and evolving monetary policy landscapes. Headline inflation moderated to 5.8% in CY 2024 from 6.7% in the previous year, reflecting the continued impact of tighter monetary policies and easing commodity prices.

Central banks in major economies have initiated a gradual shift toward monetary easing, with initial rate cuts introduced in late CY 2024. Further reductions are anticipated in CY 2025, which could enhance liquidity and support a recovery in private sector investment activity. While global manufacturing exhibited signs of moderation driven by supply chain realignments and shifting demand, industrial output remained resilient. Growth was underpinned by robust activity in construction, utilities and essential services. Increased emphasis on regional trade integration and diversified supply chains is expected to bolster cross-border economic resilience. Emerging markets continue to be pivotal contributors to global growth. In the Eurozone, a modest recovery is underway, supported by improving consumer demand, stabilising industrial production and an accommodative monetary stance.

Looking ahead, global GDP is projected to grow at a steady pace of 2.8% in CY 2025 and 3.0% in CY 2026. This outlook is underpinned by sustained consumer spending, targeted policy interventions and continued innovation. The global economy remains well-positioned to navigate macroeconomic uncertainties and capitalize on structural growth opportunities.

Global GDP growth rate (%)

GLOBAL ECONOMY		ADVANCED ECONOMIES		EMERGING MARKET & DEVELOPING ECONOMIES
CY2024	3.3	CY2024	1.8	CY2024	4.3
CY2025	2.8	CY2025	1.4	CY2025	3.7
CY2026	3.0	CY2026	1.5	CY2026	3.9

Indian Economy

India remained a key driver of global growth and demonstrated strong economic resilience, recording a GDP growth of 6.2% in FY 2024-25.² Domestic demand remained strong, supported by stable private consumption and increased capital investments. The Reserve Bank of India (RBI) maintained a vigilant stance on inflation while supporting growth. Inflation moderated to 3.3%, supported by stable food prices, improved supply chain efficiencies and proactive monetary interventions.³

Indias GDP growth*

FY2025	6.2%
FY2024	9.2%
FY2023	7.6%

Indias growth trajectory is expected to remain robust, supported by strong consumer demand, continued government focus on capital expenditure and sustained policy support. The Union Budget introduced meaningful income tax relief for salaried individuals, which is anticipated to bolster urban consumption and drive domestic demand. In a long-anticipated move, the Reserve Bank of India (RBI) recently cut the repo rate by 50 basis points to 6.0%, signaling a shift toward a more accommodative monetary stance. Simultaneously, the reduction in the Cash Reserve Ratio to 4% is expected to improve systemic liquidity, creating favourable conditions for credit expansion and private sector investment.

Despite prevailing global uncertainties, including geopolitical risks and financial market volatility, Indias strategic initiatives- such as diversifying export destinations, strengthening domestic manufacturing capacities and advancing structural reforms are positioning the economy more firmly within global value chains. These efforts provide a resilient foundation for sustained and broad-based growth.

Industry Overview: Market Trends and Opportunities

Global Power Transmission & Distribution (T&D)

The global power transmission and distribution market is projected to grow from an estimated USD 295–320 Billion to USD 377–418 Billion by 2029, reflecting a CAGR of 5.0% to 5.5% over the period. Rising power demand, renewable energy integration, grid modernisation and increasing EV adoption continue to drive increasing energy demand, necessitating significant investments in infrastructure. To support this growth, utilities and infrastructure players are strengthening existing networks and developing new transmission and distribution systems to ensure a stable and reliable power supply.

Additionally, the growing emphasis on sustainability and energy transition is driving increased investments in Renewable Energy (RE) infrastructure. As RE sources become more competitive, the need for efficient transmission networks to integrate and distribute renewable power has intensified. This shift is influencing investment in RE transmission infrastructure over conventional T&D systems.⁵

Regional growth markets

Indias power transmission sector is undergoing significant expansion to accommodate rising electricity demand, renewable energy integration and cross-border interconnections. India is the third-largest producer and consumer of electricity worldwide, with an installed power capacity of 472 GW as of 31^st March, 2025.⁶ Indias power sector presents an investment opportunity of INR 42 Trillion over the next decade, which is essential for upgrading aging infrastructure, meeting the rising energy demand and achieving the countrys ambitious target of 500 GW of renewable capacity by 2030.

The Government of India has prioritised grid modernisation and inter-regional transmission capacity expansion, targeting 1,42,940 MW by 2026-27. Renewable energy integration remains a focus, with transmission planning for 613 GW of renewable capacity by 2032.⁸ The inter-regional transmission capacity is set to expand from the current 119 GW to 143 GW by 2027 and further to 168 GW by 2032.⁹

Power demand in India is expected to grow at a CAGR of over 7%, driven by emerging factors such as electric vehicles, data centres and increased industrial electrification. The expansion of transmission and distribution networks, along with renewable energy generation, will be crucial in ensuring a resilient and efficient power infrastructure for the future.¹⁰

The National Electricity Plan (Transmission), developed by CEA in consultation with various stakeholders, outlines a comprehensive strategy to achieve the Indian governments energy transition goals. It details the transmission infrastructure required to support 500 GW of RE capacity by 2030, increasing to over 600 GW by 2032. Further, implementation of CERC General Network Access (GNA) Regulations is expected to facilitate non-discriminatory open access to inter-State transmission system and provide flexibility to Discoms to procure higher component of power from IPPs across India.

To achieve the RE generation target, strong transmission infrastructure is needed so as to integrate large scale RE capacities into the grid. This is expected to lead to transmission investments of INR 2.5 Trillion to INR 3.5 Trillion between Fiscal 2025 to Fiscal 2029 from approximately INR 2.6 Trillion between Fiscals 2019 to Fiscal 2024 led by upcoming ISTS projects.¹¹

Latin America & Caribbean

In Latin America, the demand for uninterrupted power supply is widely increasing, which increases the need to expand electricity generation capacities. Governments in several countries in this region are phasing out coal and nuclear plants and installing renewable energy sources. This increases the establishment of a transmission network and drives growth in the region. Latin American and Caribbean countries have implemented efforts to reduce their emissions during the last decade. Between 2015 and 2022, the region increased its renewable capacity by 51%, reaching 64% generation from renewable sources in 2022. By 2030, member countries have committed to accelerate the transition towards carbon-neutral electricity systems in Latin America and the Caribbean, ensuring that at least 80% of electricity generation is derived from renewable sources.¹²

Middle East

Five Middle Eastern nations have committed to net-zero targets, with the UAE and Oman targeting 2050 and Saudi Arabia, Bahrain, and Kuwait aiming for 2060.¹³ The UAE has pledged a 19% reduction in emissions from 2019 levels by 2030 and allocated USD 30 Billion toward climate-focused investments under COP28. According to the IEA, energy investments in the region are expected to reach USD 175 Billion by 2024, with clean energy comprising 15% of the total allocation.¹⁴

Europe

Europes T&D sector is modernising aging infrastructure while advancing towards a low-carbon economy. Investments in smart grids, energy storage and cross-border interconnections, such as the European Super Grid, are enhancing renewable energy integration. The Nordic region leads in sustainable power transmission, supporting the EUs Green Deal objectives.¹⁵

To accelerate clean energy deployment, the European Commission introduced the Net Zero Industry Act (June 2024) to boost clean technology manufacturing and reduce import dependence. The EU aims to cut greenhouse gas emissions by 55% by 2030 and achieve climate neutrality by 2050. Wind and solar capacity must expand from 400 GW (2022) to at least 1,000 GW by 2030, with offshore renewables reaching 317 GW. This transition requires a decentralised, digitalised and flexible grid to support rooftop solar panels, local communities and efficient power distribution.¹⁶

Africa

Africas T&D sector is expanding to meet rising energy demand driven by population growth, industrialisation and improved electrification. Despite abundant renewable resources, limited grid infrastructure remains a challenge, with 38 sub-Saharan countries having less than 150,000 km of transmission lines.

Achieving near-universal electricity access by 2030 requires connecting 90 Million people annually, three times the current rate (IEA). Regional integration and cross-border projects are gaining momentum, with annual T&D investment expected to exceed USD45 Billion over the next eight years.¹⁷

Asia-Pacific

Asia accounts for over 41% of the global T&D market share in 2024, led by Chinas USD 65 Billion investment in Ultra High Voltage (UHV) transmission lines connecting western provinces with eastern cities.²² Asias electricity demand is set to rise significantly, driven by economic growth and industrial expansion. ASEAN countries are advancing interconnections under the ASEAN Power Grid initiative, which aims to enhance regional energy security and enable more efficient use of resources.

Annual grid investment needs will more than double to USD 22 Billion by 2035, supporting regional initiatives like the ASEAN Power Grid, which aims to interconnect all 10 ASEAN nations.¹⁸ Decentralised solutions like renewables-based microgrids are crucial for remote and island communities. Strengthening T&D infrastructure will be key to ensuring energy security, economic growth and a successful transition to clean energy.

Renewable energy evacuation infrastructure is expanding across Southeast Asia as nations ramp up solar and wind capacity, with Vietnam, Thailand and the Philippines making significant investments in grid infrastructure to support their renewable energy targets. These developments are crucial for the regions transition to a more sustainable future.

Australia

Australias National Electricity Market (NEM) is prioritising Renewable Energy Zones (REZs) to streamline renewable energy integration with transmission infrastructure, ensuring efficient deployment of solar and wind resources. The country has set a target of 82% renewable electricity by 2030, supporting its broader net-zero commitment for 2050 and aligning with its Paris Accord goal of a 43% emissions reduction from 2005 levels. The Australian Energy Market Operators (AEMO) Draft 2024 Integrated System Plan (ISP) underscores the need for significant investments, including a threefold increase in grid-scale renewables by 2030 and a sevenfold expansion by 2050.¹⁹ Strengthening transmission capacity remains a key priority, with regulatory frameworks facilitating private sector participation to ensure infrastructure development keeps pace with the accelerating energy transition.

Oil and Gas

In 2024, the crude oil and natural gas sector operated within a dynamic environment shaped by controlled OPEC+ supply, fluctuating demand and escalating geopolitical tensions. Despite macroeconomic headwinds and the ongoing shift toward energy transition, the market demonstrated resilience, reflected in the relative stability of oil prices throughout the year.²⁰ The oil and gas infrastructure market size has grown strongly in recent years. It will grow from USD739.23 Billion in 2024 to USD804.06 Billion in 2025 at a compound annual growth rate (CAGR) of 8.8%.²¹

Global oil demand growth is projected to average 1.1 mb/d in 2025, up from 870 kb/d in 2024. Global oil supply is on track to increase by 1.6 mb/d to 104.5 mb/d in 2025, with non-OPEC+ producers accounting for the bulk of the increase if OPEC+ voluntary cuts remain in place.²² Meanwhile, the global outlook for the gas pipeline network remains strong, driven by rising energy demand and the shift to cleaner fuels. Significant investments in LNG and cross-border pipelines, especially in Asia and the Middle East, are expected to support this growth.

Focus Markets

India

The India Oil and Gas Market size is estimated at 40.10 Billion cubic meter in 2025 and is expected to reach 51.67 Billion cubic meter by 2030, at a CAGR of 5.2% during the forecast period (2025-2030).²³

Indias network of operational natural gas pipelines has expanded by nearly 7,500 km. As of September 2024, a total of 33,475 km of natural gas pipelines have been authorised, with 24,945 km currently in operation and more than 10,000 km under construction.²⁴ Rising oil and gas consumption is prompting the expansion of pipeline capacities and the commissioning of new projects, while offshore activities and including deepwater production are further driving demand.

Indias natural gas demand is projected to rise by nearly 60% to 103 Billion cubic meters annually by 2030, driven by rapid infrastructure expansion, policy support and increased consumption in city gas distribution, heavy industry, and power generation. With domestic production expected to grow modestly, LNG imports are anticipated to rise to approximately 65 bcm per year to meet this demand.²⁵

Middle East

The Middle East remains a cornerstone of the global oil and gas industry, consistently supplying approximately 35% of the worlds oil over the past two decades and holding about 40% of global oil reserves.²⁶ With a strong investment outlook, national oil companies are focused on expanding production and modernising infrastructure. Significant projects, such as LNG export capacity expansions, are underway to meet growing global demand. Additionally, cross-border initiatives, including interconnected pipeline networks, are enhancing regional energy security and enabling more efficient resource distribution.²⁷ These developments underscore the Middle Easts commitment to meeting global energy demands through strategic investments and collaborative infrastructure projects.

Southeast Asia

The region is undergoing a significant transformation due to a surge in upstream and downstream investments. Between 2024 and 2028, the region is projected to approve over USD 100 Billion in offshore gas projects. In 2024, Southeast Asia sanctioned over USD 10 Billion for greenfield developments, with Indonesia, Malaysia and Vietnam leading the charge.²⁸ Indonesia plans to double its refining capacity to 2.2 Million barrels per day by 2025, while Vietnam and Malaysia are also making substantial investments in new refinery and petrochemical projects.²⁹

Amid this growth, Southeast Asia faces the dual challenge of sustaining oil and gas production from maturing fields and advancing its energy transition goals. The regions energy demand is projected to rise by 45% by 2050, which requires a careful balance between energy security, affordability and environmental responsibility.³⁰ Despite the gradual shift toward renewables, oil and gas remain central to Southeast Asias energy mix, ensuring continued demand for infrastructure and EPC services.

Africa

Africas oil and gas sector is on a strong growth trajectory, with capital expenditure expected to reach around USD 43 Billion in 2025, following a 23% increase in 2024. This momentum is projected to continue rising to approximately USD 54 Billion by 2030, led by a robust pipeline of projects in West and North Africa. Significant investment is being directed toward supporting facilities such as gas processing plants, pipeline networks, storage terminals and refining infrastructure.

Established producers like Nigeria and Angola remain at the forefront, while emerging markets such as Mauritania and Senegal are attracting growing investment interest. While liquid hydrocarbons are set to dominate and account for over 60% of total hydrocarbon spending, natural gas is gaining traction with its share projected to exceed 40% by the end of the decade.³¹

Civil Construction

Building and Factories Residential and Commercial

India is undergoing rapid urbanisation, with 600 Million people-40% of the population-expected to reside in cities by 2036.³² Strong real estate demand is being driven by the expansion of metro networks, upgrades to road infrastructure and overall improvements in connectivity. This urban shift is fuelling strong real estate demand, necessitating increased investment in residential, commercial and industrial infrastructure, positioning the sector for sustained growth.

Indias housing demand is projected to reach

INR 93 Million

units by 2036

The increasing adoption of Real Estate Investment Trusts (REITs) is driving sustained growth in the commercial real estate sector. Simultaneously, the residential market continues to gain momentum, recording its highest sales volume in 11 years in the first half of 2024, with total sales across the top eight cities rising by 11% year-on-year.³³

Residential market³⁴ Office market³⁵

~302,900 units ~52.3 MN SQ. FT.

Sales in 2024 Supply in 2024

~281,600 units ~79.0 MN SQ. FT.

Unit launches in 2024 Absorption in 2024

Industrial and logistics market³⁵

38.6 MN SQ. FT.

Supply in 2024

39.5 MN SQ. FT.

Absorption in 2024

Commercial real estate trends show a strong focus on sustainability, flexible workspaces and technology integration. The demand for office space continues to rise, particularly in cities like Bengaluru, Hyderabad and Pune, driven by the booming tech industry. With the rapid digitalisation of the economy, data centre construction has gained momentum. Investments are being channelled into building state-of-the-art facilities to support the growing demand for cloud services, data storage and processing capabilities.

Data Centre

Indias data centre industry has expanded at a CAGR of ~20% from FY2019 to FY2024 and is projected to grow at ~30% CAGR from FY2024 to FY2027, driven by 5G rollouts, AI, IoT and increasing digital adoption. Investment of INR 550-INR 650 Billion is expected between FY 2025 - FY 2027, supported by government initiatives such as the Digital Personal Data Protection Bill (2023), infrastructure status for data centres and the draft data centre policy. The sectors rapid growth is further fuelled by rising internet penetration, e-commerce expansion and AI-driven workloads, driving higher demand for scalable IT infrastructure. This growth is also expected to boost construction activity, with increasing investments in data centre facilities cloud services, and energy-efficient solutions.³⁶

Industrials

Indias private capex is expected to witness robust growth in FY2025–26, supported by strong economic fundamentals and proactive policy measures. According to CRISIL, industrial capex is projected to reach INR 7.1 lakh Crore by FY2030, a 1.6x increase over the FY2021–25 average, driven by improved capacity utilisation, healthy corporate balance sheets and the rollout of Production-Linked Incentive (PLI) schemes. Emerging sectors such as electric vehicles, semiconductors and electronics are likely to account for over 23% of industrial capex between FY2026 and FY2030, reflecting a structural shift in investment patterns.³⁷ The Reserve Bank of India also projects a positive economic outlook for FY2025–26, supported by resilient domestic consumption and rising capital spending.³⁸ With continued public investment and targeted government initiatives, private sector participation is expected to remain strong, sustaining momentum in overall capital formation.

Indian Real Estate Market Size

(USD Billion)

2017	120
2020	180
2025F	650
2030F	1,000

Source: EY Real Estate Report, November 2024

Indias real estate sector, which accounted for 7% of GDP in 2024, is expected to increase its contribution to 13% by 2025 and 18% by 2047. The market is projected to grow from USD 300 Billion in 2024 to USD 1 Trillion by 2030.³⁹ As India shifts to a middle-income economy, rapid urbanisation and a growing middle class are expected to drive long-term demand for housing in India. The urban housing shortage is projected to reach 31.2 Million units by 2030, presenting significant opportunities for real estate developers.⁴⁰ The sector has experienced significant Private Equity (PE) investments in recent years, driven by attractive returns. With investments expected to reach USD 59.7 Billion by 2047, the industry holds substantial potential for continued growth and expansion.⁴¹

Water Supply and Irrigation Sector

Indias water supply and irrigation industry is a critical sector, supporting agricultural productivity, public health and economic growth. To address rising demand, both public and private entities are investing in large-scale water treatment and distribution infrastructure. Several national initiatives are driving sectoral growth. The Jal Jeevan Mission aims to provide safe and adequate drinking water to all rural households through tap connections by 2024. Programmes such as the Atal Mission for Rejuvenation and Urban Transformation (AMRUT), the National Mission for Clean Ganga (NMCG) and various Community Drinking Water Schemes are further strengthening Indias water and wastewater treatment infrastructure.

Between Fiscal 2020 and 2024, the sector attracted INR 3.5–4.5 Trillion in investments, with an estimated INR 5–6 Trillion expected between Fiscal 2025 and 2029, led by state-driven irrigation initiatives.

The Jal Jeevan Mission (JJM) has made significant strides, with tap water connections provided to over 80% of rural households as of 2025.⁴² This remarkable progress underscores the governments commitment to ensuring universal access to clean water. The Department of Drinking Water and Sanitation received a substantial allocation of INR 74,226 Crore in the Union Budget 2025-26, with INR 67,000 Crore specifically earmarked for the Jal Jeevan Mission.⁴³ This funding boost aims to accelerate the provision of tap water connections to rural households and addressing one of Indias most pressing water access challenges.

The Pradhan Mantri Krishi Sinchai Yojana (PMKSY) has been allocated INR 93,068 Crore between FY-22 to FY-26, with INR 37,454 Crore in central government support. This funding has accelerated the completion of major and medium irrigation projects. The National Mission for Clean Ganga aims to develop 7,000 Million litres per day (MLD) of sewage treatment capacity along the river by December 2026. To support this goal, 200 projects have been approved, focusing on creating 6,217 MLD of sewage treatment capacity and establishing a 5,282 km sewerage network.⁴⁴

Civil Infrastructure

Indias infrastructure is witnessing robust growth, driven by the governments focus on large-scale infrastructure development and urbanisation aimed at improving connectivity, boosting employment and enhancing living standards across the nation. In FY2025, the sector recorded sustained growth driven by robust economic fundamentals and government-led initiatives to enhance infrastructure capabilities. Indias infrastructure output witnessed steady growth, rising by 4.6% year-on-year as of January 2025, supported by significant contributions from core sectors. Urban development remains a focal point, with the government investing in projects such as Smart Cities Mission and metro rail expansions.

As of 2025, India is projected to become the third-largest construction market globally, with a market size surpassing USD 1 Trillion. The sector has been a major focus area, with large-scale investments under the National Infrastructure Pipeline (NIP) across various sectors over a six-year period and the PM Gati Shakti Master Plan, which emphasises multimodal connectivity and integrated infrastructure planning. As India progresses towards its Viksit Bharat vision, improving infrastructure is crucial. In support of this, the Union Budget 2024-25 has allocated INR 11.11 Trillion to the sector, representing 3.4% of the GDP.⁴⁵ This increased funding will help expand and modernise infrastructure, boosting connectivity and setting the stage for continued growth.

Growth Drivers for the Construction Sector in India

Businesses	Plans and outlook
Roads, Elevated Expressways, Bridges and Tunnels	• Over 200 projects worth USD 14.97 Billion are planned for the next five years.
	• The Government intends to build 65,000 km of national highways with an investment of USD 64.17 Billion.
	• Under the Bharatmala Pariyojana, 35 Multimodal Logistics Parks will be developed, involving an investment of around USD 5.55 Billion, capable of handling approximately 700 MMT of cargo.
Airports	• Under the National Infrastructure Pipeline (NIP), over INR 91,000 Crore has been allocated as capital expenditure for airport infrastructure development between FY 2019-20 and FY 2024-25.46
	• Indias air travel demand has surged, with passenger traffic growing at a CAGR of 10-12% in recent years. This growth is driving significant investments in airport infrastructure to expand capacity and improve passenger experience.
	• Indias domestic carriers are expected to expand their fleet size from 800 aircraft to 1,400 within the next five years.47
	• 583 routes connecting 86 airports have become operational under the UDAN scheme and planning to launch operations at 12 new airports across eight states and Union Territories in the near future.48
Railways	• The Union Budget 2025-26 has allocated a historic INR 2.65 lakh Crore for the Ministry of Railways, representing a significant increase compared to the INR 45,900 Crore allocated during the FY 2009-14 period. This substantial allocation will continue to fund critical infrastructure development including tracks, wagons, trains, electrification, signalling and station development with a strong focus on safety.49
	• INR 32,235 Crore has been earmarked for new railway line construction in FY 2025-26, while INR 32,000 Crore has been allocated for track doubling projects. Additionally, INR 4,550 Crore has been dedicated to gauge conversion initiatives.
	• Plans to construct 1,000 Road Over Bridges (RoBs) and Road Under Bridges (RuBs) will further enhance connectivity and safety at railway crossings.
	• High-speed rail projects are gaining momentum globally. The Government of India has outlined plans for a 7,000-km high-speed rail network by 2047, targeting speeds up to 250 km/h.50
Urban Transport – Metro Rail	• India has become home to the third-largest metro network in the world. Metro systems have transformed travel in India, covering over 1,000 km across 11 states and 23 cities.51
	• India has currently laid foundation for multiple development projects worth over INR 12,200 Crore in Delhi, including the inauguration of the 13 km stretch of the Delhi-Ghaziabad-Meerut Namo Bharat corridor.52
	• The first RRTS corridor between Delhi-Ghaziabad-Meerut is now partially operational, with the full 82 km corridor scheduled for completion by December 2025.53
	• Light rail and metrolite projects are emerging as cost-effective alternatives for smaller cities, presenting new avenues for urban transport development.

Businesses	Plans and outlook
Ports	• The Ministry of Ports, Shipping & Waterways (MoPSW) has set an ambitious target to complete 150 key maritime projects by September 2025 as part of its broader strategy to boost Indias shipping and waterways sector.54
	• The MoPSW launched several initiatives aimed at modernising Indias maritime infrastructure, including the ‘One Nation-One Port Process (ONOP) initiative to standardise and streamline operations across major ports.
	• Indias ports infrastructure market is valued at USD 6.89 Billion in 2024, and is expected to reach USD 10.65 Billion by 2030. This growth is driven by increased investment in modernisation and expansion of port facilities.
	• The Maritime India Vision 2030 aims to increase port capacity to 3,300+ MTPA by 2030, requiring investments of approximately INR 3.5 Crore across major and non-major ports.55
	• The Sagarmala Programme demonstrates the governments commitment to port-led development, mapping out 802 projects worth INR 5.5 lakh Crore for completion by 2035. As of 2024, around 215 projects valued at INR 99,173 Crore have been completed, while another 216 projects worth INR 2.12 lakh Crore are at various stages of execution.56

Urban Transport – Metro Rail Company Overview

Kalpataru Projects International Limited (KPIL) stands as one of Indias largest specialised Engineering, Procurement and Construction (EPC) conglomerate with a diversified portfolio spanning Power Transmission and Distribution, Buildings and Factories, Water Supply and Irrigation, Railways, Oil and Gas, Urban Mobility, Highways and Airports. The Company has established a significant global presence, currently executing projects in over 30 countries with footprints in 75 countries.

With over four decades of experience, KPIL maintains leadership positions across its major businesses through strong organisational capabilities, superior technical expertise and adherence to best-in-class sustainability standards. The Companys robust order book reflects its ability to secure high-value projects from both public and private sector clients, supported by its reputation for quality, safety and timely delivery.

Business-Wise Performance

Power Transmission and Distribution (T&D)

The Power T&D business remained KPILs largest and fastest-growing business in FY 2024-25, delivering strong revenue growth of 28% YoY to INR 10,026 Crore. This performance was supported by robust project execution and a healthy order pipeline across key geographies.

During the year, the Company secured new T&D orders worth INR 14,461 Crore, primarily from India, Sweden, LatAm, Africa and Middle East. The international business also gained strong momentum—Linjemontage Sweden posted its highest-ever revenue of INR 1,842 Crore and recorded a new high in order intake at INR 2,805 Crore. Fasttel Brazil reported 35% revenue growth in FY 2025, closing the year with a strong order book of INR 901 Crore as on 31^st March 2025.

As of 31^st March 2025, the T&D order book stood at INR 26,671 Crore, offering strong revenue visibility and a solid platform for continued growth in the years ahead.

Building and Factories (B&F)

The Buildings and Factories business delivered strong performance in FY 2024-25, with revenue rising 22% YoY to INR 5,854 Crore, supported by a balanced portfolio of residential, commercial and industrial EPC projects. KPIL secured INR 8,225 Crore in new orders during the year, including marquee wins in the residential and airport segments, further reinforcing its execution capabilities and long-term competitiveness.

The business also strengthened its presence into high-growth markets like Mumbai Metropolitan Region (MMR) and National Capital Region (NCR). Operational efficiency was enhanced through the adoption of agile construction practices, automated formwork systems and AI-driven site safety protocols. With continued focus on execution excellence and selective bidding in high-margin opportunities, the segment remains well-positioned to maintain double-digit growth going forward.

Water

Execution in the water business was impacted during the year due to delayed collections from state utilities and deferred allocation of funds. Despite these challenges, the Company maintained a strong order book of INR 9,573 Crore and recorded revenue of INR 2,284 Crore.

With collections expected to improve from FY2026 and resource mobilisation efforts already in progress, execution is likely to pick up in the coming quarters. Supported by large ongoing projects and secured budget allocations, the business is well-positioned for a recovery, with growth anticipated in FY2026.

Oil and Gas

KPILs oil and gas business delivered revenue of INR 1,758 crore in FY 2024-25, registering ~114% YoY growth, driven by improved execution of domestic projects and the ramp-up of international engagements. The business gained strong momentum by executing a project for a leading Saudi energy major, marking a key milestone in KPILs Middle East expansion.

With an order book of approximately INR 7,700 Crore and mobilisation already underway for international projects, the business is well-positioned for accelerated execution in the coming years. KPIL is also actively pursuing opportunities in Africa, Southeast Asia and Latin America and positioning itself as a competitive player in global oil and gas infrastructure while aligning with long-term energy transition goals.

Railways

Revenue from the railways business stood at INR 1,019 Crore in FY 2024-25, impacted by slower order inflow amid intense competition and KPILs selective bidding strategy. Despite the subdued topline, the Company maintained its market presence through new contract wins. While domestic competition from PSUs and large EPC players remains strong, KPIL is now actively exploring railway opportunities in international markets such as Croatia, Slovakia, Albania, Bangladesh and Tanzania.

Urban Infra

With expanding expertise in elevated and underground metro systems, KPIL generated INR 778 Crore in revenue from its urban infrastructure business in FY 2024-25. Key execution milestones were achieved, including TBM deployment and the Company secured the Nagpur Elevated Metro project, adding INR 847 Crore in new orders.

Rapid asset additions—such as tunnel boring machines, segment moulds and launching girders—have significantly strengthened KPILs metro execution capabilities. Backed by a strong order book and growing presence in high-growth regions, this segment is poised for robust growth in the coming year.

Consolidated Business Revenue

(INR in Crore)

Particulars	2024-25	2023-24	Change (YoY)
T&D*	10,026	7,827	+28%
B&F	5,854	4,790	+22%
Water	2,284	3,511	-35%
Oil & Gas	1,758	822	+114%
Railways	1,019	1,425	-29%
Urban Infra	778	705	+10%
Total Core Business	21,719	19,080	+14%
Others #	597	546	+9%
Total Consolidated Revenue	22,316	19,626	+14%

* T&D business includes LMG (Sweden), Fasttel (Brazil) & Other International Subsidiaries / JVs

#Others mainly includes Shree Shubham Logistics (SSL), Road SPVs, Saicharan (Indore Real Estate) etc.

Operational Highlights

Manufacturing Updates

During the year, KPIL continued to strengthen its in-house manufacturing capabilities, with increased utilisation across its transmission tower fabrication and testing facilities. Focused investments in automation and mechanisation helped enhance throughput and quality while reducing execution timelines. In the Buildings and Factories business, the Company deployed automated rebar cutting and bending machines, composite steel structures and AI-enabled surveillance systems at project sites.

Geographical Updates

KPIL expanded its operational footprint across key domestic and international markets. In India, execution ramped up across metro corridors in Uttar Pradesh, Madhya Pradesh and Maharashtra. In the B&F business, new projects were added in regions like MMR and NCR. The company also began exploring opportunities in Eastern Europe, LatAm, Southeast Asia and Africa in both the railways and energy verticals.

Order Book

Order inflows during the year touched INR 25,475 Crore and KPIL closed FY2025 with its highest- ever consolidated order book of INR 64,495 Crore as of 31^st March 2025.

The order book remained diversified across businesses and geographies offering strong execution visibility for the coming years.

The Power T&D business led the growth with an order backlog of INR 26,671 Crore, followed by strong pipelines in B&F of INR 14,095 Crore. The robust order book offers healthy visibility for multi-year revenue growth, supported by a balanced mix of domestic and international projects and increasing contribution from high-margin design- and-build contracts.

Company Outlook

KPIL is well-positioned to build on its strong foundation and diversified business mix in the coming fiscal year. Strategically, KPIL continues to prioritise operational excellence, timely execution and disciplined capital deployment. The Company is actively expanding its international presence in high-potential markets such as the Middle East, Africa, Latin America and Southeast Asia particularly in the T&D and Oil and Gas businesses. Domestically, KPIL is sharpening its focus on metro, urban infrastructure and high-value industrial and institutional projects to drive long-term value creation.

Across all verticals, KPIL remains committed to enhancing competitiveness through automation, digitalisation and adoption of lean construction practices. These initiatives, coupled with investments in mechanisation, sustainability and people development are expected to accelerate project delivery and margin improvement. With the infrastructure cycle gaining momentum in India and worldwide, KPIL is expected to seize new opportunities and maintain its profitable growth.

Standalone and Consolidated Key Figures

(INR in Crore)

	Standalone			Consolidated
FT>Particulars	FY2024-25	FY2023-24	% change	FY2024-25	FY2023-24	% change
Revenue	18,888	16,760	12.7%	22,316	19,626	13.7%
Core EBITDA	1,587	1,365	16.2%	1,834	1,629	12.6%
Core EBITDA Margin (%)	8.4%	8.1%	+26 bps	8.2%	8.3%	-8 bps
PAT	648	533	21.6%	567	516	10.0%
PAT Margin (%)	3.4%	3.2%	+25 bps	2.5%	2.6%	-9 bps

Key Financial Ratios

There is no significant change (i.e. change of 25% or more as compared to the FY 2023-24) in any key financial ratios.

	Standalone		Consolidated
Particulars	FY2024-25	FY2023-24	FY2024-25	FY2023-24
Debtors Turnover (No. of Days)	124	116	113	106
Inventory Turnover (No. of Days)	62	59	59	57
Interest Service Coverage Ratio (in times)	3.68	3.68	2.83	2.91
Current Ratio (in times)	1.31	1.27	1.27	1.24
Debt Equity Ratio (in times)	0.47	0.57	0.64	0.76
Operating Profit Margin (%)	8.4	8.2	8.2	8.3
Net Profit Margin (%)	3.4	3.2	2.5	2.6
Return on Net Worth (%)	9.0	9.3	8.7	10.0

Note: Standalone return on net worth has reduced due to increase in capital and consolidated return on net worth has reduced due to increased capital and lower profitability of subsidiaries.

Environment, Health and Safety

The Company has built a robust and world-class Environment, Health and Safety (EHS) framework, demonstrating an unwavering commitment across all business verticals. This proactive approach ensures the highest standards of EHS are not only met but continuously improve.

With a clear focus on creating a safe and healthy work environment, the Company integrates global EHS best practices into its day-to-day operations. A strong emphasis is placed on preventing occupational injuries and illnesses, thereby safeguarding employees, contractors, visitors and communities associated with its projects.

In line with its dedication to excellence, the Company complies with internationally recognised standards such as ISO 45001:2018 and ISO 14001:2015 and strictly adheres to applicable legal and regulatory requirements, ensuring a structured and comprehensive approach to occupational health, safety and environmental management.

To further enhance its EHS capabilities, the Company has embraced digital transformation—implementing advanced systems for monitoring, analysing and reporting EHS data. By leveraging artificial intelligence, the organisation has developed tools that proactively identify and address unsafe work practices.

The Company also places strong emphasis on stakeholder engagement and transparent communication in all aspects of EHS performance. Regular safety audits, feedback mechanisms and cross-functional reviews help in identifying gaps and driving continuous improvement. These initiatives ensure that the workforce remains aligned with the organisations safety vision while empowering teams to take ownership of EHS outcomes at every level.

A structured training framework is in place to equip employees, contractors and site personnel with the necessary knowledge and skills to manage risks effectively. Regular induction programmes, refresher courses, emergency response drills and specialised workshops are conducted across all project sites and offices. These programmes are tailored to various roles and risk levels, ensuring that EHS awareness and competency are embedded throughout the organisation.

Moreover, the Company fosters a strong EHS culture by encouraging employees at every level to integrate safety principles into their daily responsibilities. Through well-defined policies, procedures, engineering and administrative controls, rigorous review mechanisms and targeted training programmes, the organisation remains focused on its ultimate goal—achieving ‘ZERO Harm.

EHS Excellence Journey

EHS Business Excellence

Management Control	Monitoring and Measurement	Training and Development
World-class user-friendly EHS operational control procedure for a safe work system.	3-layer EHS audit to understand the common challenges and expectations on existing systems.	State-of-the-art learning center to develop the aspirants who could translate their potential power of knowledge into actual work practice.
Integration of EHS in the planning and designing stage of a new project.	Quantitative rapid EHS performance assessment for monitoring and measuring EHS performance.	Site-based safety park for live demonstration and hands-on experience.
Reporting and in-depth incident investigation guideline.	Formation of EHS steering committee at business/site levels.	EHS LMS module on different topics for effective learning.
EHS reward and recognition policy to encourage and appreciate the performance of employees.	EHS walk round of project site by business unit head/project site line management team around the sites to resolve the EHS issues.	Virtual Reality training for an immersive learning experience that recreates real-life settings.
EHS enforcement and work stoppage guideline.	Fortnightly EHS reviews are held with business unit EHS heads or regional EHS leaders.	EHS induction movie of live working practices.
EHS Journal – to handle the emergency crisis and also to establish collaborative efforts towards positive EHS culture and spread awareness across the organisation.	Quarterly EHS Review	Weekly EHS webinar for all levels of employees.
Innovative engineering control mechanism.	– Project Wise.	Job-specific training/induction and refresher training.
EHS review by the leadership team.		Leadership EHS workshop.
		Workshop for leadership team.
		Emergency evacuation drill.

EHS Excellence Awards

The Company has been honoured with several prestigious and well-deserved awards during the year, a few of which are highlighted below.

The organisation received widespread recognition across multiple prestigiousplatformsforexcellenceinprojectexecutionandsafety. At the 16^th CIDC Awards, it secured four Trophy + Certificate honours for outstanding projects across Railway, Water, and B&F business units, including the Barwadih-Garhwa Road Railway line and Hanimaadhoo International Airport. An additional five projects earned Medal + Certificates, and seven others received Certificates for commendable performance. At the British Safety Council Awards, projects earned 2 Distinctions, 21 Merits, and 1 Pass, covering sectors such as Railways, Water and Buildings and Factories. The RoSPA Awards brought further acclaim with 3 Gold, 4 Silver recognitions across Railway, SIO and Water business units. Furthermore, the ICC National Occupational Health & Safety Awards recognised the IOCN project in the Construction & Industry sector, and the World Safety Organisation honored the BTRP and TDC-1 projects with Gold and Silver awards, respectively. These accolades highlight the organisations strong focus on quality, safety and excellence in execution across diverse geographies and sectors.

Human Resource

At KPIL, people are the driving force behind the Companys progress. The Company believes that a motivated and capable workforce is integral to delivering sustainable growth and operational excellence. It remains committed to empowering its employees with the right tools, training and support systems to excel in a dynamic business environment. Through inclusive policies and a strong learning culture, KPIL nurtures high-performing teams and cultivates leadership from within. As of 31^st March 2025, the Company had a talented and experienced workforce of 9,870 employees.

Learning and Development

At Kalpataru Projects International Limited (KPIL) fosters a culture of continuous learning and capability building to ensure our workforce is future-ready and aligned with evolving business imperatives. The Companys comprehensive Learning and Organisational Development (L&OD) framework is structured around four strategic pillars—Functional, Technical, Management and Leadership Development. This framework is designed to upskill talent at every level and reinforce KPILs position as a global EPC leader.

Functional Training

To enhance project execution and domain expertise, KPIL delivered focused functional learning initiatives. A key highlight was the Advanced Project Management & Strategic Leadership Certification, launched in collaboration with S P Jain School of Global Management. This programme covered critical areas such as project strategy, risk and stakeholder management, communication, negotiation and conflict resolution.

Additionally, the Company rolled out an online Advanced Project Management series, targeted at team leads across domestic and international project sites. To ensure broad reach and accessibility, KPIL engaged external experts to conduct high-impact sessions on project and risk management.

Technical Training

The Companys technical training programmes are designed to strengthen engineering acumen and execution capabilities. Employees engage in hands-on workshops, digital learning modules, rigorous assessments and industry-recognised certifications. This blended approach supports continuous upskilling and empowers teams to deliver excellence across complex EPC projects.

Management Training

Developing strong managerial capability is central to KPILs talent strategy. The Company offers structured development pathways that focus on operational efficiency, team leadership, resource optimisation and cross-functional collaboration. These programmes equip managers to lead with agility, drive performance and navigate dynamic project environments.

Leadership Development

KPIL invests in developing resilient, future-ready leaders through targeted interventions for high-potential talent identified via our 9-box talent matrix—Consistent Star, Rising Star and Future Star categories. Flagship programmes include:

Executive Leadership Program (in partnership with IIM Ahmedabad) for senior leaders

LEAP for emerging future leaders (in collaboration with Jombay)

ELEVATE for early-stage leaders (in collaboration with Jombay) These initiatives are designed to broaden strategic thinking, foster innovation and support smooth leadership transitions across the organisation.

Diversity and inclusion

KPIL is committed to building an inclusive workplace grounded in respect, equality and opportunity. The Company values diversity across gender, geography, age and demographics, and takes pride in multicultural workforce.

With women currently representing 3.2% of the total workforce, the Company aims to increase this to 5% by FY2026 through targeted hiring, mentorship, cross-functional exposure and leadership development programmes tailored for women. The Companys D&I agenda remains integral to talent strategy, with a continued focus on advancing gender equity and fostering inclusive leadership.

Employee Engagement, Well-Being and Culture

KPIL deeply values its people and refers to them as the Kalp-Parivar. The Company strives to build a safe, vibrant and inclusive workplace where employees feel valued and inspired to contribute their best. It continuously reviews and refines its people policies to ensure they remain aligned with employee aspirations and evolving organisational goals.

A wide array of engagement and wellness initiatives are in place to nurture employee satisfaction and well-being. These include KALPA GAURAV for recognizing outstanding contributions, the Employee Bill of Rights (EBR) to reinforce transparency and fairness and PARICHAY to support effective onboarding and cultural integration. Programmes like MAGIC and KALPOTSAV celebrate employee milestones and talents, while AROGYAM promotes holistic health and well-being. The Company also recognises the academic achievements of employees children and supports their education through school fee reimbursements.

Rewards and Recognition

KPIL believes in appreciating and celebrating the hard work of its people. The Company has various rewards and recognition programmes that reflect its values and recognise employee contributions. Employees who complete five years with the Company are honoured by the CHRO, while those who complete ten years are recognised by the Managing Director, with celebrations held across project sites. One of the most special awards is the Exceeding Everest Award, given to employees who make a big impact through cost-saving ideas, new innovations, better systems, increased productivity or support in growing the business. These efforts to recognise achievements help build a strong sense of pride and motivation among employees.

Corporate Social Responsibility (CSR)

KPIL is committed to promoting inclusive development, ethical governance and long-term sustainability by addressing critical societal needs through strategic, community-focused interventions. Its CSR initiatives, implemented directly and through Kalpataru Foundation in partnership with grassroots organisations, create lasting impact across Healthcare, Education, Skilling, Environment, Animal Welfare and Need-based Community Development. With a strong focus on ethical practices, regulatory compliance and stakeholder engagement, it strives to build resilient communities, promote equity and contribute meaningfully to a sustainable future for both society and the planet.

Healthcare

Kalpa AaRogya sEva (KARE)

Healthcare remains a key focus of KPILs vision, with Project KARE serving as the flagship initiative to deliver accessible and holistic healthcare interventions.

Medical Mobile Units (MMUs)

KPIL launched four mobile medical units for providing access to basic healthcare services in villages across Rajasthan, Odisha, Jharkhand and Bihar. These MMUs provide diagnostic and pathology services in underserved communities at their doorstep. Several health awareness camps focusing on reproductive health and menstrual hygiene have provided adolescent girls and women with accurate information, safe hygiene practices and access to healthcare while addressing social stigma and promoting dignified health choices.

Beneficiaries impacted

11,300+

Kalpa Seva Aarogya Kendra (KSAK)

KSAK, a healthcare Centre, in Khorpa, Chhattisgarh, continued to offer specialised medical services including dental, gynecological, orthopedic and dermatological care etc, addressing healthcare gaps in rural areas while complementing existing public health infrastructure. In addition to the OPD, a sanitary napkin making machine is being operationalised to promote safe menstrual hygiene practices amongst adolescent girls and women.

Patients treated

13,100+

Artificial Limb Donation and Fitment Camps

Persons with Disabilities (PwDs) were provided with crutches, wheelchairs and prosthetic limbs were fitted as the case may be. The camps were organised in Bacheli, Kabirdham and other towns of Dantewada district in Chhattisgarh.

PwDs benefitted

331

Community-based Healthcare Interventions

KPIL supported cataract surgeries across geographies including Aspirational Districts. It continued its support toward creating awareness on Parkinsons Disease for the geriatric population. In addition, individual beneficiaries were extended support for cancer treatment, dialysis and maternity care.

Community members reached

4,600+

Education and Skilling

Kalpa Vidya Kalpa Kaushal (KVKK) Education

At KPIL, education is recognised as a key driver of inclusive growth and social advancement. Aligned with the National Education Policy (NEP) 2020, its interventions promote holistic, value-based learning that nurtures critical thinking and lifelong skills.

Key initiatives include the establishment of Digital Smart Classrooms, STEM Labs and interactive learning spaces, which have transformed government schools in rural and urban areas by integrating technology-enabled learning, promoting experiential and curiosity-based education and enhancing student engagement. STEM Labs are helping bridge the gap in hands-on science education, encouraging innovation and practical skills. These initiatives have enhanced the teaching methods, thus, shifting from rote to experiential learning.

The renovation of three hostel blocks was completed for a residential school in Gandhinagar, providing education and stay facility for specially-abled children (hearing and speech impairments). The support has created safe and inclusive living spaces, enabling them to pursue education with dignity.

Through these initiatives, KPIL aims to create a conducive learning environment that supports academic growth and personal development. Initiatives are implemented across 63 schools in Gujarat, Uttar Pradesh, Telangana, Haryana, Odisha, Karnataka, Tamil Nadu, Maharashtra, Rajasthan and Madhya Pradesh.

Students and teachers impacted

22,000+

Skilling

Skill development is central to KPILs commitment to economic empowerment and inclusive growth. Its initiatives focus on equipping marginalised groups, particularly women and youth, with industry-relevant and entrepreneurship-linked skills. KPIL launched a women-centric Skill Development Centre in Khorpa village, Raipur, where women are trained in traditional vocations such as sewing machine operation and phenyl making, along with entrepreneurship development. The initiative aims to foster financial independence and socio-economic empowerment.

To bridge the skill gap in EPC sector, KPIL partnered with organisations to train youth, school drop-outs etc. in skills like bar bending, formwork, electricians etc. through National Apprentice Promotion Scheme (NAPS), on-the-job training provided to the candidates.

To enhance livelihood opportunities, Persons with Disabilities in rural areas were donated motorised tricycles to enhance their mobility.

Candidates Trained

870+

Animal Welfare and Environment

SAVe our animals save OUR environment ("SAVIOUR") Animal Welfare

KPIL is committed to promoting animal welfare through comprehensive interventions including rescue, treatment, anti-rabies vaccination, birth control and nutritional support for animals in distress. It supported capacity-building efforts through webinars, specialised workshops, a knowledge-sharing platform and advocacy-based networking initiatives, aimed at strengthening the capabilities of organisations working in the animal welfare sector.

Animals treated

12,000+

Environment

KPIL promotes environmental sustainability through afforestation and biodiversity conservation initiatives. The plantation undertaken in Mayurbhanj, Odisha aims to restore Black Tiger habitat, the Black Tigers habitat, promoting ecological balance and harmonious coexistence between humans and nature. These efforts contribute to forest regeneration and wildlife conservation, while also generating livelihood opportunities for tribal communities. Tree plantation was undertaken in Gandhinagar city to create green spaces and enhance the environment.

Need-based Community Development

Kalpa Gramodaya and Other Need-based Initiatives

KPIL addresses diverse community needs through targeted infrastructure and development projects. Key initiatives include the construction of a Dasgatra and Cremation Shed and installation of an open gym for the villagers in Khorpa, Raipur. Construction of an access road was completed in Dive Village, Pune, to improve connectivity for school-going children, farmers, etc. Renovation of a labour canteen in Raipur was undertaken to enhance hygiene and safety conditions for daily wage workers. Based on the request received from a government girls high school, an ICT and STEM lab was established in Jodhpur to promote STEM learning and enhance the outcomes of students.

Saplings planted

37,000+

Risk and Concerns

The Board holds the primary responsibility for overseeing risk management and internal controls to ensure alignment with the Companys strategic objectives. This includes defining the Companys risk tolerance, continuously assessing and monitoring key risks and reviewing reports from internal auditors on risk assessments and control measures. Given the evolving regulatory landscape, market volatility and operational challenges, the Company remains committed to undertaking proactive risk mitigation through robust governance frameworks, compliance mechanisms and strategic decision-making to safeguard long-term business sustainability.

Risks/Threats	Risk Description	Mitigation Strategy
Environment, Health and Safety (EHS) Risks	Operating across a wide spectrum of infrastructure sectors and geographies, the Company is inherently exposed to Environment, Health and Safety (EHS) risks. The nature of its work often in remote or high-risk terrains and under varied regulatory regimes demands strict adherence to evolving EHS norms. Any lapse in compliance may result in legal liabilities, operational disruptions, reputational damage or increased costs.	Recognising the criticality of managing EHS risks in complex and dynamic environments, the Company has implemented a comprehensive mitigation strategy
		Regulatory compliance: It ensures adherence to both global and local EHS regulations to safeguard workforce wellbeing, protect surrounding communities and preserve environmental integrity.
		Governance framework: A structured governance system drives EHS oversight, accountability and policy enforcement across all projects.
		Process excellence and training: Tailored safety protocols, regular monitoring and proactive reporting help pre-empt EHS issues. Ongoing training and awareness initiatives further embed a strong safety culture across the organisation.
Loss of biodiversity risk	Loss of biodiversity continues to be a significant risk with direct implications for project execution and environmental compliance. Project activities in ecologically sensitive zones may result in disruption to local ecosystems, with potential to endanger plant and animal species. Such ecological impacts attract close regulatory scrutiny, which could delay project timelines and invoke legal liabilities, thereby affecting overall business continuity.	The Company continues to adopt a systematic approach to address biodiversity risks associated with its operations. By integrating biodiversity considerations early in the project lifecycle, it aims to minimise ecological disruptions and ensure compliance with applicable environmental standards.
		• Project-level biodiversity screening: Before initiating project activities, the Company carries out ecological assessments, as per project scope, to identify environmentally sensitive zones and evaluate potential biodiversity risks. These findings inform project design and site management practices.

Risks/Threats	Risk Description	Mitigation Strategy
Solid waste management risk	As environmental regulations become more stringent, effective solid waste management continues to pose operational and compliance challenges. Construction activities generate both hazardous and non-hazardous waste that require safe handling, treatment and disposal. Upcoming regulatory changes such as the Environment (Construction and Demolition) Waste Management Rules, 2025 further highlight the need for adaptive waste handling mechanisms.	• Integrated environmental planning: The outcomes of biodiversity assessments are incorporated into project execution plans to mitigate impacts, supported by periodic monitoring, documentation and compliance with regulatory frameworks.
		• The Company also engages with relevant stakeholders and regulatory bodies throughout the project lifecycle to reinforce its commitment to biodiversity protection. These efforts promote sustainable development while aligning with broader environmental governance expectations.
		• The Company continues to strengthen its solid waste management practices through a structured, process-oriented approach. With increasing emphasis on regulatory compliance and environmental responsibility, the organisation is aligning its operations to meet both current standards and future expectations.
		• Process-Based Segregation and Monitoring: Waste is segregated at the source into hazardous and non-hazardous streams, with defined protocols for collection, handling and disposal.
		• Stakeholder Engagement and Review Mechanism: Periodic reviews and internal assessments are carried out involving cross- functional teams to evaluate waste management efficiency and update protocols in line with regulatory developments.
		• Regulatory Readiness and Circularity Roadmap: The Company has adopted sustainability targets for FY 2023–24, with the goal of achieving circularity in Construction and Demolition (C&D) waste by 2035. Efforts are underway to enhance reuse, recycling, and material recovery practices in line with the requirements of Environment (Construction and Demolition) Waste Management Rules, 2025.
		• The Companys waste management approach is rooted in the 3R principles—Reduce, Reuse and Recycle—and is progressively evolving toward a circular economy model. These efforts not only support compliance with statutory requirements but also reduce the environmental impact of project execution, enabling more sustainable and resource-efficient operations.
Financial risk	Interest rate risk, exchange rate risk and liquidity risk are the three major financial risks. Exchange rates and interest rate fluctuations impact the Companys finances and profitability. The Company faces project delays and adverse contractual payment terms leading to increased working capital requirements.	The Company uses a variety of fund-raising products with a range of maturities to manage interest rate risks in a dynamic manner.
		• It uses a mix of its domestic and international order books scattered across several locations as a technique for reducing currency risk.
		• In order to reduce the exposure to foreign exchange-related risk, it also uses currency-forward contracts.
		• The Company has access to well diversified sources of liquidity through various consortium banking arrangements and institutions.
		• Beyond this the Company relies on access to trade finance and capital markets. It also continuously examines its liquidity levels, as well as the state of the economy and capital markets.
		• The Company also deploys specific cash flow management strategies and processes to monitor and review regularly and takes corrective actions, as may be required to manage the working capital.

Risks/Threats	Risk Description	Mitigation Strategy
Commodity price variation and currency fluctuations	The Company deals with wide range of commodities such as cement, insulators, steel, zinc, copper and aluminium, which constitute a major portion of its direct costs for activities like tower fabrication and transmission line erection. Commodity prices and availability are subject to fluctuations driven by supply-demand dynamics, competition, production trends and taxation policies. In the absence of adequate hedging, rising input costs under fixed-price contracts could impact profitability. Also, with operations across multiple countries, adverse currency movements may affect the Companys financial performance.	As a part of broader Risk Management Policy, the Company has a dedicated framework to manage commodity risk.
		• The Companys business is significantly dependent on availability, cost and quality of raw materials and fuels for the construction and development of projects undertaken.
		• The Company currently manages such risk through the price escalation clause in some of the Contracts whereby the fluctuation in the input cost is passed on to the Client.
		• In case of firm price contracts, the Company enters into a Commodity Forward Contract to hedge its price risk or pass on back-to-back firm price contract to its vendor/contractor.
		• The Company addresses the risk of fluctuation in commodities which cannot be hedged by building adequate contingencies based on market trends.
Cyber security risk	The Company has invested in Digitisation and Automation across all functions. Globally cybersecurity has become a key concern for the continuity of business.	• Cybersecurity practices are being implemented under the guidance of the Risk Management Committee of the Company. These practices are grouped into people, process and technology control areas under the Companywide Cyber Security Assurance Framework.
		• Employee awareness of cybersecurity is being enhanced through initiatives such as online cybersecurity awareness campaigns on phishing and e-mail security.
		• Network devices, server operating systems and hardware are upgraded periodically.
		• Online Information Security certification is mandatory for all new joiners and annual re-certification is done for all employees.
		• New applications are deployed after adequate testing and additional certification in the case of external applications. It also actively monitors security logs to detect any malicious attempts and takes the necessary measures to mitigate the risk. Adequate data safety is ensured during its creation, storage, transit and retrieval.
Operational Risk	Given the nature of the EPC business, the Company is inherently exposed to a wide range of operational risks including execution delays, supply chain disruptions and unforeseen site- level challenges. Such risks can lead to project overruns, cost escalations and impact both revenue recognition and profitability.	To manage these risks effectively, the Company has implemented a comprehensive framework:
		Robust policies and controls: Standardised procedures and risk- mitigating protocols are embedded across project lifecycles to ensure consistency and timely decision-making.
		Project-level risk assessment: Each project is evaluated through a structured operational risk lens, leveraging industry best practices to identify vulnerabilities early and implement corrective measures.
Client Counterparty Risk	The Company faces the risk of counterparties failing to meet their contractual obligations, which could lead to delays in payments, cost recovery issues or financial losses. This risk becomes significant in projects with long execution cycles or geographies with volatile credit environments.	The Company adopts a structured approach to manage counterparty risk:
		Trusted client base: A significant portion of its projects are with reputed government entities, public sector undertakings or international clients backed by multilateral funding agencies which offer high credit reliability.
		Credit assessment protocols: For private or lesser-known clients, the Company undertakes rigorous due diligence, evaluating creditworthiness through public financial data, past experience and market intelligence.

Risks/Threats	Risk Description	Mitigation Strategy
		Contractual remedies: Exposure to counterparties is continuously assessed, with timely interventions and contractual safeguards implemented to minimise financial exposure and protect cash flows.
		Cost Mitigation: In cases of reasons of delays attributable to Clients during the course of execution of works, such as payment delays, appropriate mitigation measures are undertaken in a structured manner, to minimise the cost escalation in consequence.
People risk	In a competitive landscape, maintaining strong employee relations, attracting and retaining skilled professionals and building an engaged workforce have become increasingly critical.	• The Company maintains regular engagement with its workforce to understand their needs, goals and potential concerns. Employee feedback is continuously used to refine policies, compensation and development initiatives.
		• A structured recruitment process is followed to attract top industry talent.
		• To develop future leaders, the Company provides periodic training, mentoring and career advancement opportunities.

Internal Control

The Company maintains adequate internal controls, appropriate to the nature and size of the business and commensurate with the scale and complexity of its operations. The Company has implemented robust policies and procedures, which inter alia, ensure integrity in conducting its business, safeguarding its assets, timely preparation of reliable financial information, accuracy and completeness in maintaining accounting records and prevention and detection of frauds and errors. At the heart of the processes is the extensive use of technology. This ensures robustness and integrity of financial reporting and internal controls, allows optimal use and protection of assets, facilitates accurate and timely compilation of financial statements and management reports and ensures compliance with statutory laws, regulations and company policies. It has continued its efforts to align all its processes and controls with global best practices.

The Company has aligned its internal controls with the requirements of the Companies Act, 2013. The statutory auditors of the Company have issued an attestation report on the Companys internal control over financial reporting (as defined in section 143 of the Companies Act, 2013). The Board of Directors and management at all levels of the Company demonstrate through their directives, actions and behaviours the importance of integrity and ethical values to support the efficient functioning of the system of internal control. The same is demonstrated through various means including, but not limited to Code of Conduct together with the Whistle Blower Policy and Anti Bribery and Anti-Corruption Policy for raising concerns about unethical behaviour, improper practice, any misconduct, any violation of legal or regulatory requirements, actual or suspected fraud by any official of the Company without fear of punishment or unfair treatment, appraising Senior Management and the Audit Committee of the Board periodically on the internal processes of the Company concerning Internal Controls, Statutory Compliances and Assurance etc.

The Company has well-documented policies, procedures, and authorisation guidelines commensurate with the level of responsibility, besides standard operating procedures specific to respective businesses. The Company has a Group Assurance department besides an external firm acting as an independent internal auditor that reviews internal controls and operating systems and procedures. A dedicated Legal Compliance division ensures that the Company conducts its businesses with the highest standards of legal, statutory and regulatory compliance. The Audit Committee of the Board reviews the annual internal audit plan prepared by the Group Assurance department, covering core business operations, corporate departments as well as support functions. Corporate Audit Services conducts independent internal audits and the significant audit observations are presented to the Audit Committee every quarter along with an update on the implementation of recommended remedial measures and agreed actions by the management. The effectiveness of internal controls was tested during the year by the Statutory Auditors as well as by the internal audit firm and no reportable material weaknesses either in their design or operations were observed. The evaluation included documentation review, enquiries, testing and other procedures considered to be appropriate in the circumstances.

Cautionary Statement

This report includes facts, figures, assumptions, strategies, goals and intentions of the Company, which may be forward-looking. The actual results and performance of the Company may differ significantly from those presented herein. The Companys performance depends on global and national economic conditions, commodity prices, business risks, changes in government rules and regulations and other factors.