Kalpataru Projects International Ltd Management Discussions

Global Economic Overview

The global economy has demonstrated remarkable resilience despite a series of geopolitical shocks and intensifying trade friction. According to the World Bank, global growth in 2025 stabilised at 3.4%, aligning closely with long-term trends. Over the past year, significant headwinds from trade barriers and policy uncertainty were countered by strong investment in technology, particularly AI, alongside supportive fiscal and monetary policies and a weaker US dollar.1

Further, the evolving conflict in the Middle East presents a significant challenge to the resilience of the global economy. A halt in shipments through the Strait of Hormuz and surge in energy prices is leading to increase in inflation and might have adverse consequences for growth. The global growth is projected to be 3.1% in 2026 and 3.2% in 2027.1

Global Macroeconomic Indicators

Indicator	2025	2026E	2027E
Global GDP Growth (%)	3.4	3.1	3.2
Advanced Economies (%)	1.9	1.8	1.7
Emerging Markets and Developing Economies (%)	4.4	3.9	4.2
Global Inflation (%)	4.1	4.4	3.7
Trade Growth (%)	5.1	2.8	3.8

Source: IMF World Economic Outlook Update, April 2026

Against this backdrop, infrastructure investments act as an economic growth multiplier and are an increasingly valid response to global challenges such as climate change, demographic growth, greater demand for electricity, water scarcity and the AI boom. The rise in defence and security spending also boosts the demand for resilient transport networks, reliable energy infrastructure and advanced logistics systems.

Indian Economic Overview

India continues to be the fastest-growing major economy, supported by strong domestic demand, sustained public investment and stable macroeconomic fundamentals. Indias GDP growth for FY 2025-26 is estimated at 7.4%, reflecting stronger-than-expected economic momentum. Growth is expected to moderate to 6.8-7.2% in FY 2026-27, while remaining structurally robust supported by stable macroeconomic fundamentals, sustained policy support, and broad-based sectoral performance2.

India continues to stand out as one of the worlds fastest-growing major economies, well-positioned to sustain this momentum. Indias growth profile continued to be supported by resilient domestic consumption, strong public capital expenditure, services strength, and steady manufacturing activity. Additionally, India has signed or is negotiating trade deals and free trade agreements (FTA) with other key trading partners like the European Union, United Kingdom, Australia and others. These deals not only provide a positive atmosphere to trade relations but should be positive for India overall, being especially beneficial for manufacturing and labour-intensive industries2.

Infrastructure development is one of the important catalyst driving India growth. Acceleration in infrastructure investment, especially transportation, energy and logistics, is directly boosting growth while steadily improving competitiveness for enterprises.

India Growth Indicators

Indicator	2025	2026E	2027E
GDP Growth (%)	7.4	7.4	6.8-7.2
Fiscal Deficit (% of GDP)	4.8	4.4	4.3
Inflation Trend	Moderating	Stable	Near Target

Source: IMF, Economic Survey, Budget 2026

INDUSTRY OVERVIEW

Global Power Transmission & Distribution (T&D)

The global power transmission & distribution (T&D) sector is seeing a surge in demand, fuelled by the growth in demand for electricity, urgent need to modernise aging grid infrastructure and integrate renewable energy. Following a 3% growth in 2025, global electricity demand is projected to rise at an average annual rate of 3.6% through 2030.

This growth is driven by industrial expansion, electric mobility, cooling systems, urbanisation, and the rapid rise of data centres. Over the next five years, annual demand growth is expected to be 50% higher than the average of the previous decade.3

Key trends generating demand for power transmission & distribution:

1. Accelerated Integration of Renewable Energy

• Remote Power Generation: With solar PV generating record amounts of electricity, renewable output rose rapidly in 2025. Renewable output is forecast to grow by about 1,000 terawatt-hours (TWh) annually through 2030, with solar PV alone accounting for over 600 TWh.

In percentage terms, renewable generation is forecast to rise at an annual rate of 8% per year. Renewable energy sources (solar, wind) are often located far from population centres, requiring extensive new transmission lines to bring power to the grid.3

• Grid Flexibility: The variable nature of renewables necessitates upgrades to T&D infrastructure, including high-voltage direct current (HVDC) systems and Flexible AC Transmission Systems (FACTS) to maintain grid stability.

• Energy Storage Integration: The rapid growth of battery energy storage systems (BESS) is creating demand for new grid-level connections to shift energy from low-demand to peak-demand times.

2. Electrification of Industries and Transportation

• Electric Vehicle (EV) Adoption: The shift toward electric vehicles requires enhanced charging infrastructure, placing stress on local distribution networks and necessitating increased capacity.

• Data Centre Growth: AI-driven computing and cloud services are driving massive demand for reliable, and uninterrupted power supply.

• Industrial Electrification: Industries are adopting electric machinery to reduce carbon emissions, requiring higher-voltage connections and strengthened substation infrastructure.

3. Grid Modernisation and Ageing Infrastructure

• Replacement of Legacy Systems: A significant percentage of transmission lines and transformers in developed regions (like the US and Europe) are over 25-40 years old, demanding urgent replacement and upgrading to ensure reliability. Further, utilities are investing in digital technologies including automated sensors, loT, and AI-driven predictive maintenance to optimise efficiency, improve resilience, and enhance real-time monitoring.

• Climate-related Events: Intensifying extreme weather events are forcing utility companies to invest in hardening infrastructure, including undergrounding cables and developing localised microgrids to ensure reliability.

4. Rapid Urbanisation and Economic Growth

• Rising Peak Demand: Rapid urbanisation, particularly in emerging economies is driving a continuous rise in power consumption and peak loads.

• Infrastructure Development: Expanding cities, metro projects, and commercial hubs require strengthening the last-mile distribution network, leading to increased demand for power transmission & substations.

OUTLOOK

Investment in power infrastructure is entering a multidecade expansion cycle across generation, storage, and distribution of electricity, including renewable assets, nuclear power plants (with growing momentum behind small modular reactors), transmission and distribution (T&D), and battery storage. This is creating opportunities for infrastructure and construction companies with established credentials to leverage their existing footprints while capturing high-return growth opportunities. According to PwCs Global Infrastructure Outlook 2025-2050, annual global investment in power infrastructure will expand from USD 631 billion in 2024 to USD 1.1 trillion by 2050, implying cumulative spending of USD 25 trillion by 2050. The spending is expected to expand across three major dimensions namely T&D, generation and storage.4

Investment in Key International T&D Markets

MIDDLE EAST

The Gulf Cooperation Council (GCC) region is undergoing a significant transformation in its power infrastructure as part of its transition to lower carbon emission energy sources and enhanced regional grid interconnection. Majority of GCC countries has set ambitious targets to increase the share of renewable energy in their power generation mix. Additionally, strong capex for urban construction, industrial, and data centre growth, necessitates large scale transmission upgrades, renewables integration and expanding grid capacity, particularly in UAE and Saudi Arabia. The For instance, Saudi Arabia has planned expansion targets over 0.16 Million ckm of transmission and nearly 1.1 Million ckm of distribution networks by 2030 depicting long-term growth in the T&D sector. Further, the IEA projects that annual power sector investments will more than triple to about USD 126 Billion in 2035 from 2023 levels with nearly 50% of that capex towards renewable capacity and 40% to power grids and storage.5

4 PwC Global Infrastructure Outlook 2025-50

5 ANB Capital Research, Press Articles

6 Goldman Sachs Research Sep 2025, Reuters Article Dated 23 Sep 2025

7 World Economic Forum Report - Advancing Latin Americas Power System Transformation, October 2025

8 Australian Energy Market Operator (AEMO) Integrated System Plan for the National Electricity Market

AFRICA

Africas power transmission market is on a steady upward trajectory fuelled by rising electricity demand, the integration of renewables, and a push for regional interconnectivity. Key investments are currently targeting power deficits to unlock broader economic growth across the continent.

EUROPE

After 15 years of declining demand, Europes power demand is forecasted to grow 1.5-2% annually from 2026 driven by widespread electrification as well as new industries such as electric vehicles and data centres. In addition, parts of most European power grids are around 40-50 years old, and they need to be reconfigured to suit decentralised generation and new customers. Capex on transmission and distribution infrastructure is expected around €1.2-1.4 trillion over 2026-35.6

LATIN AMERICA & CARIBBEAN COUNTRIES

Latin America and the Caribbean are advancing in the energy transition by adding new energy capacity from solar and wind resources. Latin America and the Caribbean (LAC) is rich in renewable energy resources and generates nearly 70% of its electricity from clean sources - significantly above the global average. The region is already making notable strides, with clean energy investment projected to reach approximately USD 70 Billion in 2025, a 25% increase since 2015. To meet energy and climate targets, total annual clean energy investment must rise to USD 150 Billion by 2030 and continue to increase steadily through 2050. Within this, grid infrastructure alone will require around USD 30 Billion per year until 2035.7

AUSTRALIA

Australia has set a national target for 82% of its electricity to be supplied from renewable sources by 2030, as part of an orderly transition to net zero emissions by 2050. Solar and wind is expected to contribute majorly of the new generating capacity in Australia. Australias grid operator has laid out a plan to build 10,000 kilometres of new transmission lines given that the different location of source of energy production and connection to the cities.8

India Power Transmission & Distribution (T&D)

India is the third-largest country by electricity demand. Electricity demand in India has been rising sharply due to increase in fast-paced urbanisation, rising demand for real estate, surge in electric mobility and improved industrial growth. India made significant strides in renewable energy targets, with its ambitious target of 500 GW renewable capacity by 2030. The year 2025-26 marked a landmark period for Indias power sector, with major milestones in terms of energy generation, transmission, and distribution. From meeting peak power demand of 256 GW to addition of ~58 GW of electricity, including 45 GW of solar, in FY 2025-26, the sector demonstrated resilience and commitment to sustainable growth.

Significant strides in power transmission & substation capacity in-line with governments efforts seamless transfer of electricity across regions, successfully realising the vision of OOne Nation-One Grid-One Frequency. Indias national power transmission network has achieved a significant milestone, crossing over 5 lakh ckm of transmission lines (220 kV and above) along with 1,407 GVA of transformation capacity (220 kV and above) in 2025-26. Since April 2015, the countrys transmission network has grown by 48% with the addition of 1.65 Lakh ckm of transmission lines, boosting transformation capacity by 791 GVA.

The recently announced National Electricity Plan from 2023 to 2032 for Central and State transmission systems to meet a peak demand of 458 GW by 2032 estimates investment of INR 9.2 trillion for the T&D infrastructure in India. Under the new plan, transmission network in the country will be expanded from 5.06 Lakh ckm in March 2025 to 6.48 Lakh ckm in 2032. During the same period the transformation capacity will increase from 1,451 GVA to 2,345 GVA. Inter-Regional transfer capacity will increase from 120 GW to 168 GW. This plan covers the network of 220 kV and above. This plan will help in meeting the increasing electricity demand, facilitate renewables integration and green hydrogen loads into the grid. The plan has also taken into consideration the requirement of storage systems, viz. 47 GW of BESS and 31GW of Pumped Storage Plants to be developed along with renewable energy.

OIL & GAS INFRASTRUCTURE

The energy landscape has been significantly influenced by geopolitical tensions and economic shifts. The ongoing Israel-Hamas conflict and attacks on energy supply routes in the Strait of Hormuz have intensified concerns over energy security. However, over the long-term the global oil & gas pipeline sector is entering a period of robust growth as it evolves to meet modern demands. While emerging economies expand access through urban networks, developed markets are focused on rehabilitating aging infrastructure. Simultaneously, the global push for energy security and decarbonisation is driving massive investment into natural gas, hydrogen, and renewable gas networks positioning pipeline infrastructure as a cornerstone of the future energy mix.

Focus Markets and Outlook Middle East

The Middle East remains a cornerstone of the global oil & gas industry, supported by vast hydrocarbon reserves and cost-competitive production. Countries such as the Saudi Arabia and the United Arab Emirates continue to invest significantly in expanding production capacity and upgrading infrastructure.

National oil companies across the region are undertaking large-scale investments in upstream expansion, refining and petrochemical integration, alongside strengthening midstream infrastructure such as pipelines and export terminals.

The region is also emerging as a key hub for LNG and low- carbon energy investments, including hydrogen, as part of broader economic diversification strategies. Cross-border pipeline projects and integrated energy networks are enhancing regional energy security and supporting global supply stability.

India

Indias growing energy demand and evolving global energy landscape necessitate a resilient, diversified, and efficient energy system. In March 2026, the Ministry of Petroleum and Natural Gas notified the Products Distribution (Through Laying, Building, Operation and Expansion of Pipelines and Other Facilities) Order, 2026 under the Essential Commodities Act, 1955. The Order aims to facilitate the expansion of piped natural gas (PNG) networks, improve last-mile connectivity, and promote a shift towards cleaner fuels for cooking, transport and industrial purposes, thereby strengthening energy security and supporting Indias transition to a gas-based economy. The Petroleum and Natural Gas Regulatory Board (PNGRB) Vision 2040 report conceptualises,, design and outlines two national gas grid transmission projects along with 19 pipeline corridor projects, adding up to nearly 8,000 km of pipeline with an estimated investment worth approximately USD 39.73 billion.9 This present enormous opportunity across pipeline infrastructure development, LNG terminals and related EPC services, supported by long-term policy direction and rising consumption.

CIVIL CONSTRUCTION

India being among the fastest-growing construction markets globally and constitutes to around 7-8% of GDP. The growth of construction sector is primarily supported by rapid urbanisation, rising government-led infrastructure expenditure, private capex and substantial rebound in commercial and institutional developments. More importantly, the sector is undergoing a transition with award of large size integrated complex EPC infrastructure projects in areas such as mass transit systems, housing complex, civic utilities, etc. These structural factors position the EPC industry for sustained demand and capacity expansion. The National Infrastructure Pipeline (NIP), launched in 2019 for projects above INR 100 Crore, has scaled materially both in size and scope by March 2026. The number of projects stands at ~14,563 against ~6,800 at inception, while the total investment rose by ~92% to ~INR 213 trillion from INR 111 trillion.10

Growth Enablers

Infrastructure Investments

The Indian government is strategically prioritising infrastructure development to spur economic growth and social development, shaping opportunities for industry, employment, and improved quality of life.

A key positive for the sector is the continued scale-up of public capital expenditure, with infrastructure outlay rising to INR 12.2 Trillion for FY 2026-27 from INR 2 Trillion in FY 2025-26.11

Expansion in the Real Estate sector

With Indias rapid urbanisation, the urban population is set to rise from 36% to 40% by 2030, acting as a key catalyst for increased real estate demand. This shift drives the need for expanded residential and commercial infrastructure. Policy reforms like implementation of the Real Estate (Regulation and Development) Act (RERA), GST, and the Housing for All mission, have supported greater formalisation of the sector.

Increased Private Capex

Private sector capital expenditure in India is experiencing a significant resurgence, with new project commitments projected to surge 51.5% to nearly INR 41 Trillion in FY 2025-26, driven largely by manufacturing and mega projects.12 The momentum is now increasingly shifting towards private-led infrastructure in sectors such as defence, renewable energy, healthcare and hospitality, and data centres. Manufacturing constitutes the largest share of recent private capex, reflecting push from policies like the Production Linked Incentive (PLI) schemes.

Focus Businesses

Building Construction (Residential, Commercial and Industrial)

India continues to witness rapid urbanisation, with a rising share of the population expected to reside in urban centres over the next decade. This structural shift is driving sustained demand for residential, commercial and industrial real estate, supported by infrastructure development, improved connectivity and economic expansion.

The residential real estate segment remains resilient, supported by favourable demographics, rising income levels and increased affordability. Demand is driven by both end-users and investors, with a continued preference

Union Budget Documents 2026-27 ^Business Standard, 27 April 2026

for larger homes, integrated townships and quality developments. New launches have remained strong, supported by healthy absorption levels across major urban centres.

The commercial real estate segment continues to evolve, supported by the growing adoption of Real Estate Investment Trusts (REITs), increased institutional participation and stable leasing activity. Demand for office spaces remains robust, particularly in key technology-driven markets such as Bengaluru, Hyderabad and Pune, driven by expansion in IT, GCCs and digital services.

Indias industrial sector is entering a new investment cycle, supported by improving capacity utilisation, strong corporate balance sheets and policy-led incentives. Government initiatives such as production-linked incentive (PLI) schemes and the push for domestic manufacturing are driving capital expenditure across sectors.

Emerging industries such as electric mobility, electronics, semiconductors and renewable energy equipment are attracting increasing investments, reflecting a structural shift in industrial growth. At the same time, traditional sectors such as metals, cement and chemicals continue to expand capacity to meet rising demand.

Airports

Indias civil aviation sector is on a sustained growth trajectory becoming one of the fastest-growing markets in the world, supported by a conducive policy environment, rising demand and steady infrastructure.

The number of airports increased from 74 in 2014 to 164 in 2025. In FY 2024-25, Indian airports handled 412 Million passengers, and the same is projected to increase to 665 Million by FY 2030-31. Operationalisation of over 650 routes connecting 90 plus airports, including heliports and water aerodromes, has made air travel affordable while improving access to remote and aspirational regions. Further, the modified UDAN Scheme has been announced to increase regional connectivity to 120 new destinations and cater to 4 Crore passengers over the next 10 years.13

Water Supply & Irrigation

The Government of India has launched several large- scale initiatives to strengthen water accessibility and infrastructure. Key programmes such as Jal Jeevan Mission, AMRUT and river rejuvenation initiatives are driving investments in water treatment, distribution and wastewater management.

Focus areas include expanding piped water supply, improving irrigation efficiency and strengthening urban water infrastructure. Increasing adoption of advanced technologies in water treatment and recycling is also supporting sectoral growth. The 2026-27 budget allocated f94,808 Crore to the Ministry of Jal Shakti. Key investment areas include wastewater treatment, desalination plants, and smart water monitoring systems, aimed at achieving universal coverage and improving public health. 13

Metro Rail

Urban infrastructure remains a key focus area, with continued investments in metro rail, smart cities and urban mobility solutions. These initiatives are improving urban living standards while supporting economic activity and real estate development. Indias urban transport sector is experiencing a rapid transformation, driven by massive expansion in metro rail infrastructure, which grew from 248 km in 2014 to over 1,000 km by 2025 across 20+ cities, becoming the worlds third-largest.13

Data Centres

The data centre industry is witnessing strong growth, driven by rapid digitalisation, increasing data consumption and the expansion of cloud computing infrastructure. The sector continues to benefit from structural drivers such as 5G rollout, artificial intelligence (Al), internet of things (IoT) and rising internet penetration. Government support, including data localisation norms, infrastructure status for data centres and policy initiatives, is further accelerating investments in the sector. Increasing demand from hyperscalers, enterprises and digital platforms is driving the need for scalable, resilient and energy-efficient data centre infrastructure.

The growth of the data centre ecosystem is also translating into significant opportunities for construction and infrastructure development, including the development of large-scale campuses, advanced cooling systems and reliable power infrastructure.

Roadways & Highways

Indias roads and highways sector is moving from rapid network expansion towards greater logistics efficiency and quality. Sustained capital investment, expansion of high-speed corridors, multimodal integration under PM GatiShakti and reforms in project delivery are strengthening capacity and reliability. To align freight speeds with global benchmarks, the High-Speed Corridor network expanded from 550 km in 2014 to 5,364 km by December 2025.

A total network of approximately 26,000 km is targeted by FY 2032-33. 13

Railways

A defining feature of recent years has been the record capital expenditure on railway infrastructure, with a focus on new lines, doubling and multi-tracking, rolling stock augmentation, signalling, and safety-related works. Railways have record achievements in infrastructure creation, including construction of 35,000 km of new tracks, 47,000 km of electrification, and electrification coverage exceeding 99.5% of the broad-gauge network. Backed by the substantial allocation of INR 2,78,000 Crore in the Union Budget 2026-27, railways are focusing its spending on high-speed connectivity, freight and safety. As part of its long-term vision, the Government has announced the development of seven high-speed rail corridors between cities as growth connectors to promote environmentally sustainable passenger transport systems.13

COMPANY OVERVIEW

Kalpataru Projects International Limited is one of Indias leading specialised Engineering, Procurement and Construction (EPC) companies, with a diversified presence across multiple infrastructure businesses. With over four decades of experience, KPIL has built strong execution capabilities and technical expertise, enabling it to deliver complex projects across geographies. The Company has established a significant international presence, currently executing projects in over 25 countries and having a footprint in more than 75 countries spread across Asia, Africa, Middle East, Americas and Europe.

KPIL continues to maintain leadership positions across its key business verticals, supported by its integrated business model, strong project management capabilities and focus on operational excellence. Its diversified portfolio enables it to participate in multiple high-growth infrastructure sectors, both in India and globally.

The Companys robust order book reflects its ability to secure large and complex projects from a diverse client base, including government bodies, utilities and private sector players. This is underpinned by its strong track record of quality execution, adherence to safety standards and timely project delivery.

KPIL operates through six strategic EPC business verticals, namely, Power Transmission & Distribution (T&D), Buildings & Factories (B&F), Oil & Gas, Water and Irrigation, Railways and Urban Infrastructure.

BUSINESS REVIEW

Power Transmission & Distribution (T&D)

The Power T&D business remained the largest contributor to overall performance, contributing around 46% of the revenue and 44% of the order book at consolidated level. The T&D business continues to deliver strong growth supported by robust execution and a healthy order pipeline in domestic and overseas markets. In FY 2025-26, T&D revenue has increased by 25% from INR 10,026 Crore in FY 2024-25 to INR 12,501 Crore in FY 2025-26.

In FY 2025-26, the T&D business recorded its record order intake of over INR 12,931 Crore, driven by robust performance across both domestic and international markets. The T&D order book stood at INR 28,572 Crore as on 31st March 2026, fairly spread across India, Europe, South America, Africa and Middle East. KPILs international subsidiaries in the T&D business, particularly LMG Sweden continued to perform well, contributing meaningfully to both revenue growth and order intake. LMG reported revenue of INR 3,023 Crore in FY 2025-26, reflecting growth of 64% YoY. Order book for LMG stood at INR 3,258 Crore as on 31st March 2026. Performance of our subsidiary in Brazil i.e. Fasttel continued to remain weak. We have filed an application for judicial reorganisation for Fasttel under applicable Brazilian law on 5th March, 2026.

The Company continued to strengthen its presence with securing of high value projects in strategic markets like India, Middle East and Africa. The Company is consistently working towards improving its capabilities in High Voltage Direct Current (HVDC), substation and international solar EPC.

Backed by a strong execution track record, robust order book, end to end capabilities ranging from in-house design, engineering, testing, manufacturing and construction, the Company is well-positioned to sustain growth and lead its market position in India and overseas market.

Building & Factories (B&F)

The Buildings & Factories business remains the most dynamic business backed by robust growth, strong delivery track record and market leading position. The business secured several key orders during the year, including its largest project for development of 14 Million square feet of real estate project from one of the leading developers in India.

During the FY2025-26, the B&F business secured projects worth INR 11,460 Crore, leading to highest ever order book of INR 18,295 Crore with all-time high. Revenue from B&F Business achieved a strong performance in FY 2025-26 with revenue of INR 6,958 Crore as compared to INR 5,854 Crore in FY 2024-25, growth by 19% YoY.

The Company has cemented its presence in major real estate markets in India while continuously diversifying and expanding its residential and commercial building portfolio. The Company continues to strengthen its capabilities to meet the new opportunities, particularly in the data center, airport and industrial sectors.

With a focus on execution excellence and selective bidding for large size projects, the business remains well-positioned to sustain growth momentum.

Oil & Gas

The business gained strong momentum primarily a executing from gas pipeline project in Saudi. The Oil & Gas business delivered revenue of INR 2,723 Crore in FY 2025-26, registering 55% YoY growth.

With a healthy order book and increasing participation in international projects, the business is well-positioned for continued expansion. The Company is actively exploring opportunities across emerging markets, aligning its growth strategy with evolving energy infrastructure requirements.

Urban Infra

The urban infrastructure business continued to build momentum, supported by marquee order wins in the metro rail segment namely, Thane Integral Ring Metro Rail Project and Underground Metro Rail Project in Delhi MRTS. The business delivered an order intake of INR 2,009 Crore. Building on this momentum, the business achieved all-time high revenues of INR 1,158 Crore, registering a strong 49% YoY growth. The Company is actively executing elevated and underground metro rail projects in cities including Delhi, Thane, Bhopal, Nagpur, Kanpur and Indore.

Strengthening of execution capabilities through investment in tunnel boring equipment and technology has enhanced the Companys ability to deliver complex urban infrastructure projects. With a strong order pipeline and increasing urban mobility demand, the business is poised for strong growth.

Railways

Revenue from the railways business stood at INR 1,113 Crore in FY 2025-26 with improvement of 9% compared to FY2024-25. The Company maintained a disciplined and selective bidding approach during the year in view of increased competition.

To diversify its growth opportunities, KPIL is actively exploring opportunities in composite works, overhead electrification, signalling and telecom within the conventional and metro rail segment. This strategic shift is expected to support future growth and enhance the segments contribution over the medium term.

Water

The water business witnessed execution challenges during the year, primarily due to delays in collections and funding allocation from clients. Despite these headwinds, the business maintains an order book of INR 7,486 Crore, reflecting revenue visibility going forward.

With improving collections and strong policy support reflected in terms of budget allocated INR 94,808 Crore in Union Budget 2026-27, the business is well positioned for growth going forward. Additionally, the business is also exploring opportunities in the international markets with a focus on water supply and treatment projects in Middle East, Africa and South East Asian markets.

FINANCIAL AND OPERATIONAL PERFORMANCE REVIEW

KPIL delivered strong financial and operational performance in FY 2025-26, recording robust growth in revenue and profitability, supported by a healthy order book. The Companys focus on efficient working capital management and operational efficiency has led to improvement in profitability ratios, strengthen the balance sheet and improve returns ratio.

Order Book and Order Inflows

The Company achieved strong order inflows of ~INR 26,400 Crore during the year, with a good level of orders booked in the T&D and B&F business. The order backlog amounted to INR 65,457 Crore as on 31st March, 2026. The order book remains well-diversified across sectors and geographies, with a balanced mix of domestic and international projects. The Company has a wide customer base including both public and private customers.

Major businesses such as T&D and B&F continue to contribute significantly, providing strong multi-year revenue visibility. More importantly, the Company is increasing the share of high-value projects, which is leading to improved capabilities in high-growth areas and expected to improve competitiveness. To enhance performance and build on our proven strategy of strategic and selective bidding, we are positioning ourselves for profitable growth in growing sectors, segments and geographies.

Business-wise Order Book

Business Vertical	Value (INR Crore)	% share
T&D	28,572	44%
B&F	18,295	28%
Oil & Gas	4,578	7%
Water	7,486	11%
Urban Infra	4,143	6%
Railways	2,382	4%
Total	65,457

Manufacturing Capacities and Capabilities

We continued to invest in expanding our capacities and adding complementary capabilities to support our growth plans. KPIL also has extensive manufacturing capabilities spread across two manufacturing plants located in Raipur, Chhattisgarh and Gandhinagar, Gujarat with a combined commissioned capacity of 2,40,000 MTPA tons encompassing engineering, design, fabrication, galvanisation and painting for transmission towers, lattice structures, poles, railway girders, formwork, scaffolding, etc.

Key Highlights - Financial Performance

(INR Crore)

0 WIDTH=100% cellpadding=2>

Particulars	Standalone		Consolidated
	FY2025-26	FY 2024-25	FY2025-26	FY 2024-25
Revenue from Operations	23,210	18,888	27,143	22,316
Core EBITDA	2,029	1,587	2,240	1,834
Core EBITDA Margin %	8.7%	8.4%	8.3%	8.2%
PAT	832	648	1,031	567
PAT Margin %	3.6%	3.4%	3.8%	2.5%
Net Worth	8,215	7,185	7,777	6,513
Net Debt	749	1,107	915	1,953

The Company has reported standalone revenue of INR 23,210 Crore during FY 2025-26 as against INR 18,888 Crore in the previous year, resulting in an increase of 23%. Similarly, consolidated revenue stands at INR 27,143 Crore with a healthy growth of 22% YoY. This growth in revenue was primarily driven by strong performance the T&D, B&F, Oil & Gas and Urban Infrastructure businesses.

The Company has reported an EBITDA of INR 2,240 Crore as against INR 1,834 Crore in the previous year. The increase is primarily on account of increase in turnover during the year. EBITDA margin reported at 8.3% as against 8.2% of the previous year.

The Company has reported a Net Profit of INR 1,031 Crore as against INR 567 Crore in the previous year and reported a growth of 82%. The Increase is mainly due to increase in revenue, operational profitability and reduced finance cost driven by working capital efficiency and reduction in debt.

The Companys net worth increased by 19.4% in FY 2025-26. Increase is mainly due to earnings and other comprehensive income for the year.

Total Borrowings stood at INR 3,307 Crore (31st March, 2025: INR 4,189 Crore). During the year ended 31st March, 2026.

Net Debt stood at INR 915 Crore (31st March, 2025: INR 1,953 Crore).

OUTLOOK

Kalpataru Projects International Limited is ideally positioned to capitalise on opportunities arising from global energy expansion, the energy transition, and rapid urbanisation. We are witnessing a significant surge in investment across grid modernisation, renewables, urban mobility, and large-scale infrastructure-megatrends that serve as the engine for our long-term growth. Backed by a diversified portfolio, strong execution capabilities, and a robust financial profile, we are focused on securing value accretive EPC projects. Our strategy targets healthy revenue growth and improved profitability while strengthening our balance sheet, supported by sectoral tailwinds in power T&D, renewables, hydrocarbons, and civil construction. We remain committed to sustainable growth, operational excellence, and the creation of stakeholder value.

Key Financial Ratios

Particulars	Standalone		Consolidated
	FY 2025-26	FY 2024-25	FY 2025-26	FY 2024-25
Debtors Turnover (No. of Days)	120	124	111	113
Inventory Turnover (No. of Days)	69	62	63	59
Interest Service Coverage Ratio (in times)	4.33	3.68	4.06	2.83
Current Ratio (in times)	1.30	1.31	1.25	1.27
Debt Equity Ratio (in times)	0.35	0.47	0.43	0.64
Operating Profit Margin (%)	8.7%	8.4%	8.3%	8.2%
Net Profit Margin (%)	3.6%	3.4%	3.8%	2.5%
Return on Net Worth (%)	10.8%	10.0%	14.4%	9.7%

Debt Equity ratio has reduced by more than 25% due to improved cash inflows from operations. Interest Service Coverage Ratio, Return on Networth and Net Profit Margins have increased due to increased profitability.

ENVIRONMENT, HEALTH AND SAFETY

The organisation has instituted a well-defined and integrated Environment, Health, and Safety (EHS) governance framework that is embedded across all business units. This framework reflects a strong commitment to operational excellence, risk management, and sustainable business practices, ensuring that EHS considerations remain a core element of all organisational activities.

EHS is systematically aligned with business strategy and operational planning, enabling structured oversight and effective risk control. The organisation adopts a proactive approach to hazard identification, risk mitigation, and performance monitoring, with the objective of maintaining safe and healthy work environment for all stakeholders, including employees, contractors, workers and associated communities.

The EHS management system is aligned with globally recognised standards, including ISO 45001:2018 and ISO 14001:2015, and is supported by robust internal governance mechanisms to ensure compliance with applicable legal and regulatory requirements. This structured approach facilitates consistency, accountability, and continual performance enhancement across all operations.

The organisation has structured its Environment, Health, and Safety (EHS) framework into four key pillars to ensure a comprehensive and systematic approach to for operational excellence and a Zero Harm work environment.

The first pillar focuses on a process-driven approach, wherein a suite of policies, procedures, and standard operating guidelines has been developed and implemented to ensure safe and consistent execution across all activities.

The second pillar comprises a robust review and governance mechanism, supported by a multi-layered performance monitoring system. EHS performance is systematically reviewed at defined intervals— daily, fortnightly, monthly, and quarterly— facilitating performance evaluation on periodic intervals.

The third pillar emphasises engineering controls, where the organisation proactively identifies and implements technical and design-based solutions to eliminate or minimise risks at the source, thereby enhancing workplace safety through inherent risk reduction.

The fourth pillar addresses administrative controls and workforce readiness, wherein structured guidelines are established for onboarding new personnel. All workers undergo mandatory induction, training, and competency assessments prior to deployment at site, ensuring they are adequately equipped to perform their roles safely.

Collectively, these four pillars provide a balanced and integrated framework, strengthening the organisations ability to manage risks effectively while driving consistency, compliance, and continuous improvement in EHS performance.

Capability development is driven through a structured and role-based competency framework, ensuring that personnel across all levels are equipped with the necessary knowledge and skills to manage EHS risks effectively. Regular training interventions, emergency preparedness initiatives, and targeted development programmes support the consistent application of EHS standards across diverse operational environments.

The Company bagged multiple national and international EHS award and received the Recognition from reputed client for the operational excellence.

HUMAN RESOURCE

Our People Philosophy

At KPIL, we recognise our workforce as a strategic differentiator and the core driver of long-term business sustainability, global growth, and operational excellence across our diversified infrastructure sectors. KPILs people philosophy centres on accountability, continuous learning, collaboration, innovation, and inclusion.

To navigate a rapidly evolving EPC landscape, the Company executes a structured talent strategy focused on expanding leadership pipelines, accelerating digital skills adoption, boosting workforce productivity, and driving internal talent mobility. As of 31st March, 2026, the Company had a robust permanent workforce of 11,182 professional, reflecting a strong pool of talent across geographies and business segments. Through progressive policies and a deep-rooted learning culture, the Company continues to nurture high-performing teams and develop leadership capabilities across all levels.

Learning and Organisational Development (L&OD)

The Company continues to emphasise a strong culture of continuous learning and capability building to develop a future-ready workforce aligned with evolving business requirements. Learning and Organisational Development (L&OD) at KPIL is guided by a structured and well-established framework designed to balance short-term operational requirements with long-term strategic objectives across all career stages and businesses.

This framework ensures that the short-term needs of individuals and the organisation, alongside the long-term transformational and aspirational goals of the enterprise, are systematically catered to. Within this matrix, Professional interventions represent investments that strengthen current capability, while Interventional modules urgently address existing problems. Transformational initiatives focus on investments that build culture for the future, and aspirational pathways build the upcoming talent and skills of the future.

Together, these pillars support continuous upskilling and reskilling in alignment with industry demands, fostering consistent learning interventions across geographies and business units to reinforce the Companys position as a competitive global EPC organisation.

Functional Training & Technical Depth

To strengthen project execution capabilities and deepen domain expertise, KPIL continued to deliver focused functional learning interventions designed to address critical capability areas.

A key highlight during the year was the Advanced Project Management & Strategic Leadership Certification, conducted in collaboration with the S P Jain School of Global Management. This programme was structured to build both strategic and execution-oriented competencies, covering critical areas such as project strategy, contracts and claims management, risk management, stakeholder management, commercial acumen, communication, negotiation, and conflict resolution.

To complement this, an online Advanced Project Management series was rolled out for team leads across domestic and international project sites, enabling wider reach and ensuring consistent capability building across global geographies. During the year, focused programmes were conducted in technical domains to enhance skill and capabilities.

In-house subject matter experts (SMEs) delivered 356 highly contextual technical sessions covering 7,903 participants, spanning critical execution areas such as Formwork,

Plant & Machinery, Project Execution, Construction Methodology, Innovation, and Quality Management. The direct involvement of internal SMEs ensured contextualised learning that integrated knowledge sharing and lessons learned from live project environments.

Leadership Competency & Pipeline Development

Developing strong managerial capability and building a resilient leadership pipeline continue to be top priorities within KPILs talent development strategy. The Company has established structured development pathways aimed at enhancing managerial effectiveness, focusing on strengthening operational efficiency, team leadership, resource optimisation, and cross-functional collaboration.

During the year, focused learning series on key leadership competencies were conducted by a mix of internal and external experts to integrate organisational context with external perspectives. These sessions covered critical areas such as Analytical Thinking, Strategic Orientation, Change Agility, and Customer Excellence, enabling participants to gain deeper insights into day-to-day role expectations. In addition, a range of foundational behavioural programmes covering Business Communication, Personal Effectiveness, Achievement Orientation, Executive Presence, Personality Development, and Relationship Building were executed to equip managers to lead with agility in dynamic settings.

High-potential employees are systematically identified through the structured 9-box talent matrix, encompassing the Consistent Star, Rising Star, and Future Star categories to accelerate readiness for larger, more complex roles.

Over the past five years, these flagship leadership initiatives have covered 1,379 employees through targeted programmes conducted in collaboration with leading academic institutions.

Workplace Culture, Engagement, and Governance

Our talent acquisition strategy balances campus hiring at premier engineering and management institutes with strategic lateral hiring for specialised roles, ensuring seamless integration via Parichay, the corporate on-boarding framework.

KPILs multicultural workforce across India and international geographies strengthens its ability to execute complex projects in diverse operating environments. Women currently comprise 4% of the total workforce, and the Company has launched targeted diversity hiring, mentorship networks, inclusive workplace policies, and dedicated leadership programmes aimed at driving female representation to 6% by FY 2026-27.

Holistic wellness and employee satisfaction are driven through the Kalp-Parivar ecosystem, which includes Kalpa-Gaurav for recognising exceptional contributions, the Employee Bill of Rights (EBR) to guarantee workplace transparency and equity, and MAGIC & Kalpotsav to celebrate creative talents. Holistic health is managed through Arogyam, while academic excellence is supported via school fee reimbursement programmes for employees children. In tandem with well-being, dedicated training on Environment, Health & Safety (EHS) and ESG—covering Behaviour-Based Safety, Defensive Driving, Hazard Identification & Risk Assessment, and Work at Height Safety-saw 444 sessions organised for 6,733 participants.

KPIL fosters a high-performance-based culture using goal-based performance management systems, continuous feedback loops, internal mobility, and robust succession planning.

To support these scalable people practices, the Company continues to strengthen its infrastructure through HR digitalisation and technology-enabled systems. Progressively enhancing HR systems and analytics capabilities across talent acquisition, learning management, performance management, and employee lifecycle management is enabling data-driven decisions and improving process agility across geographies.

This operational stability is reinforced by industrial relations, which remained cordial and harmonious across all locations during the year, fostering an environment of mutual respect and collaborative problem-solving.

Progressively, as KPIL scales toward becoming a globally admired EPC enterprise, its strategic human capital roadmap remains firmly focused on long-term institutional resilience. The Companys future priorities centre on the continuous reinforcement of its leadership pipelines, accelerating its digital HR transformation, scaling diversity and inclusion (D&I) metrics, expanding internal career mobility, and embedding unyielding safety and well-being standards across its global ecosystems.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

Corporate Social Responsibility at KPIL is embedded in the Companys purpose and operating philosophy, reflecting the belief that sustainable infrastructure must deliver enduring social value. The CSR approach emphasises measurable impact and integrates social value creation across the development ecosystem. KPIL addresses critical gaps in healthcare, education, skill development, animal welfare, environmental stewardship, and community well-being through strategic, scalable, outcome-driven initiatives. Implemented through Kalpataru Foundation, these efforts leverage partnerships, community-led solutions, and responsible resource deployment to build resilience, strengthen stakeholder trust, and support inclusive growth.

Healthcare

Kalpa AaRogya sEva (KARE)

Healthcare is a core pillar of KPILs CSR strategy, with Project KARE as the flagship initiative focused on expanding access to affordable, quality preventive, promotive, and curative care for underserved communities.

Medical Mobile Units (MMUs)

KPIL addressed critical healthcare access gaps through five Mobile Medical Units, OPD on Wheels, delivering primary care to remote villages across Bihar, Chhattisgarh, Jharkhand, Odisha, and Rajasthan, and strengthening last-mile healthcare delivery.

Through the MMUs, health awareness initiatives addressed key issues such as reproductive and sexual health, menstrual hygiene, anaemia, hypothyroidism, heart health, hypertension, diabetes, and balanced nutrition, etc. empowering communities to adopt informed, preventive, and dignified health practices while complementing efforts to deliver equitable health outcomes.

Kalpa Seva Aarogya Kendra (KSAK)

KSAK in Khorpa, Chhattisgarh, strengthened access to affordable healthcare through subsidised OPD and diagnostic services, significantly reducing the cost burden of specialised outpatient care. By offering comprehensive services including dental, gynaecological, orthopaedic, dermatological treatment, etc. the centre enabled holistic, accessible, and patient-centric healthcare, reinforcing the commitment to equitable and inclusive health outcomes.

11,500+

Patients Treated

Community-based Healthcare Interventions

KPIL further strengthened its healthcare interventions through community based initiatives with a strong emphasis on preventive care and specialised medical support. Donations of critical vitreo retinal and cataract surgical equipment enhanced eye care infrastructure at a charitable hospital. Complementary initiatives promoted healthy ageing through Parkinsons disease awareness, enabled cataract surgeries for economically disadvantaged individuals, and provided medical treatment support to vulnerable beneficiaries, collectively improving access, quality, and continuity of care across underserved communities.

7,000+

Community Members Reached

Education and Skilling

Kalpa Vidya Kalpa Kaushal (KVKK)

Education

KPIL recognises education as a critical driver of long-term social development and economic empowerment. Aligned with the National Education Policy (NEP) 2020, its interventions promote holistic, value-based learning that nurtures critical thinking, adaptability, and lifelong skills. The initiatives focus on bridging the digital divide, strengthening STEM education, and improving learning outcomes for students from underserved communities through technology-enabled and experiential learning approaches. Key efforts include upgrading educational infrastructure by integrating digital tools into classrooms and creating inclusive, conducive learning environments.

As part of its digital inclusion initiatives, Digital Smart Classrooms were established across 15 schools in West Bengal, Chhattisgarh, Rajasthan, Uttar Pradesh, Gujarat, and Maharashtra, etc. enabling interactive, technology-supported teaching and enhanced classroom engagement. Teachers were trained in digital pedagogy to strengthen instructional effectiveness. Additionally, typing laboratories at IERT, Prayagraj were upgraded into advanced computer laboratories, strengthening digital proficiency and workforce readiness among students.

To promote experiential learning, a hub-and-spoke STEM education model was implemented across 6 rural schools in Raipur district. A state-of-the-art STEM laboratory at the hub school extended access to surrounding schools, fostering analytical thinking, practical application, and sustained community value.

6,900+

Students and Teachers Impacted Across 21 Schools

Skilling

Skill development is a key pillar of KPILs CSR framework, driving socio-economic advancement by enhancing employability, promoting economic empowerment, and enabling sustainable livelihoods, particularly for women and youth from marginalised communities.

Through the Skill Development Centre at Khorpa, Raipur, women received training in tailoring and food processing trades such as baking, supported by structured entrepreneurial development programmes that enabled self employment and income generation.

KPIL also strengthened pathways to formal employment through participation in the Government of Indias National Apprentice Promotion Scheme (NAPS), providing youth with structured, hands on industry training. Collectively, these initiatives expanded workforce participation, built job ready skills, and reinforced long term livelihood security through resilient and sustainable income pathways.

350+

Candidates Trained

Animal Welfare and Environment

SAVe our animals save OUR environment ("SAVIOUR”)

Animal Welfare

Animal welfare initiatives focused on strengthening the animal protection ecosystem through humane and timely interventions, including rescue, medical care, rehabilitation, and emergency response supported by the donation of animal ambulance to grassroot organisations. KPIL also supported Federation of Indian Animals Protection Organisations (FIAPO) efforts to enhance grassroots capacities and advance policy advocacy, reinforcing systemic and sustainable outcomes in animal welfare.

7,400+

Animals Treated

Environment

KPIL reinforced environmental sustainability through large scale afforestation in Mayurbhanj, Odisha, supporting biodiversity conservation and the restoration of critical ecosystems, including habitats of the Black Tiger, while generating livelihood opportunities for tribal communities.

Community-led water conservation efforts in Uniara, Rajasthan transformed barren land into sustainable water resources through pond construction, enhancing rainwater harvesting, groundwater recharge, soil fertility, and water security for livestock and local communities during periods of scarcity.

50,000+

Saplings Planted

Need-based Community Development

KPILs commitment to improving access to essential services and enhancing the quality of life of vulnerable and underserved communities near its project sites is reflected in its need-based interventions. These included the installation of solar panels at a Sub Health Centre in Igatpuri to ensure uninterrupted power supply and strengthen healthcare delivery, along with the provision of motorised tri-wheelers and specialised scooters to support Persons with Disabilities (PwDs) in accessing sustainable livelihood opportunities.

RISK AND CONCERNS

Kalpataru Projects International Limited has established a robust risk management framework overseen by the Board, ensuring alignment with its strategic objectives.

The framework focuses on identifying, assessing and mitigating key risks arising from a dynamic operating environment characterised by regulatory changes, market volatility and execution complexities. Through strong governance, internal controls and proactive risk management practices, the Company aims to safeguard business continuity and long-term sustainability.

Risks/Threats	Risk Description	Mitigation Strategy
Operational Risk	EPC operations are exposed to execution delays, supply chain disruptions and site- level challenges, potentially leading to cost overruns and revenue impact	• Standardised policies and controls across project lifecycle
		• Project-level risk assessments using structured frameworks
		• Early identification and mitigation of execution risks
Financial Risk	Exposure to interest rate fluctuations, foreign exchange volatility and liquidity constraints. Project delays and unfavourable payment terms may increase working capital requirements.	• Diversified funding sources with varied maturities
		• Natural hedging through diversified global order book
		• Use of currency forward contracts.
		• Strong banking relationships and liquidity access
		• Continuous cash flow monitoring and corrective actions
Commodity Price Variation & Currency Fluctuations	Volatility in prices of key inputs such as steel, cement, copper and aluminium can impact project costs and profitability, especially under fixed-price contracts. Currency fluctuations further affect financial performance.	• Price escalation clauses in contracts.
		• Commodity hedging through forward contracts
		• Back-to-back vendor contracts
		• Contingency provisioning based on market trends
Client Counterparty Risk	Risk of delays in payments or failure of counterparties to meet contractual obligations, especially in long-cycle projects or volatile geographies	• Engagement with reputed government and institutional clients.
		• Rigorous credit assessment for private clients.
		• Contractual safeguards and continuous exposure monitoring.
		• Cost mitigation strategies for delay-related impacts
Geopolitical risks	Company has footprints in over 75 countries with active projects in over 30 countries. Unstable geopolitical situations impact its project execution cycle and project costs. Due to political instability in a country or a region, Company is exposed to risk delays in collections or non payment default.	• Company monitors its exposure to various geographies it operates into on regular basis. Company also closely monitors developments arising in any country or region. Company ensures that contracts entered into by it have adequate provisions in place to protect Companys interest in adverse situations relating to political uncertainties. Company also obtains relevant insurances to protect its credit risks as per its Risk Management Policy.
Environment, Health and Safety (EHS) Risks	Operating across diverse infrastructure sectors and geographies exposes the Company to EHS risks. Projects in remote or high-risk terrains and varying regulatory environments require strict adherence to evolving norms. Any lapse may lead to legal liabilities, operational disruptions, reputational damage and increased costs.	• Regulatory compliance: Adherence to global and local EHS regulations to safeguard workforce and communities.
		• Governance framework: Structured oversight ensuring accountability and enforcement.
		• Process excellence & training: Tailored safety protocols, continuous monitoring and training programmes to embed a strong safety culture.
Loss of Biodiversity Risk	Project execution in ecologically sensitive areas may disrupt ecosystems and endanger flora and fauna. This can lead to regulatory scrutiny, project delays and legal implications affecting business continuity.	• Project-level biodiversity screening: Ecological assessments prior to project initiation.
		• Integrated environmental planning: Incorporation of biodiversity considerations into execution plans.
		• Stakeholder engagement: Continuous coordination with regulators and stakeholders to ensure compliance and sustainability.
Solid Waste Management Risk	Increasing regulatory stringency and generation of hazardous and nonhazardous waste from construction activities create compliance and operational challenges. New regulations further necessitate adaptive waste management systems.	• Segregation & monitoring: Source-level segregation with defined handling protocols
		• Review mechanisms: Periodic cross-functional assessments
		• Circularity roadmap: Target to achieve C&D waste circularity by 2035
		• 3R principles: Focus on Reduce, Reuse and Recycle to minimise environmental impact
Cyber Security Risk	Increased digitisation exposes the Company to cybersecurity threats that may impact business continuity and data integrity.	• Cyber Security Assurance Framework covering people, process and technology
		• Employee awareness programmes and mandatory certifications
		• Periodic system upgrades and application testing
		• Continuous monitoring of security logs and data protection measures
People Risk	Challenges in attracting, retaining and engaging skilled talent in a competitive environment may impact operational performance	• Continuous employee engagement and feedback mechanisms.
		• Structured recruitment processes.
		• Training, mentoring and leadership development programmes

Internal Control

The Company has devised a robust internal control framework in accordance with the nature and size of the business and complexity of its operations. The Company has implemented robust internal controls, which inter alia, ensure adherence to rules and regulations, safeguarding of assets, timely preparation of reliable financial statements, accurate and complete account keeping, and prevention and detection of fraud and errors. The Company has put in place strong policies and procedures to ensure that it conducts business with integrity amidst the dynamic corporate environment. The company thrives to ensure continuous assessment of the efficacy of various policies.

Internal Control at the Company has been designed to further the interest of all stakeholders by providing an environment which is conducive to conduct its operations and at the same time putting in the appropriate checks and balances.

The Company has aligned its internal controls with the requirements of the Companies Act, 2013 and is a combination of entity-level controls (including Internal Audit, Anti-Fraud Mechanisms such as Ethics Framework, Code of Conduct, Whistle-Blower Policy and Anti-Bribery and Anti-Corruption Policy etc.), process level controls, information technology-based controls, period end financial reporting and closing controls. Further, the Internal Control Systems have been designed to provide reasonable assurance with regard to recording and providing reliable financial and operational information. IT security controls form an integral part of the Companys internal control framework and are subject to periodic review by IT specialists and the Statutory Auditors.

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 Companys Group Assurance department, supported by an external firm acting as an independent internal auditor, develops and executes an internal audit plan covering corporate functions, core business operations and support functions. The Audit Committee reviews the annual internal audit plan. Independent audits are conducted by Corporate Audit Services, with significant observations and managements progress on remedial actions presented quarterly to the Committee. During the year, both statutory and internal auditors evaluated the effectiveness of internal controls through documentation reviews, inquiries, and testing.

No reportable material weaknesses were identified in either design or operation. The evaluation included documentation review, enquiries, testing, and other procedures considered 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.