KEC International Ltd Management Discussions

GLOBAL ECONOMY

The global economy demonstrated resilience during FY26, even as the operating environment turned materially more uncertain in the latter part of the year. Strong investments in artificial intelligence, digital infrastructure and energy transition continued to support activity, partly offsetting drag from rising protectionism, higher tariffs and the escalation of geopolitical conflict in the Middle East. The cumulative effect has been a more fragmented and regionally aligned global economic landscape, with risks once considered potential, including energy market disruption, supply chain re-routing and trade policy volatility, increasingly materialising during the year.

According to the IMF, global GDP growth is estimated at 3.4% in calendar year 2025 and is projected to moderate to 3.1% in 2026 before recovering modestly to 3.2% in 2027, below the 3.7% pre-pandemic average, reflecting structural rather than cyclical headwinds. Advanced economies are expected to grow at 1.8% in 2026 and 1.7% in 2027, while emerging markets and developing economies are projected to expand at 3.9% and 4.2% respectively, continuing to drive the bulk of incremental global activity. Emerging and Developing Asia remains the strongest regional bloc at 4.9% in 2026.

Headline inflation has proven stickier than previously expected. The IMF projects global inflation to edge up from 4.1% in 2025 to 4.4% in 2026, before easing to 3.7% in 2027 as energy-driven pressures fade. Central banks have therefore maintained a measured stance on monetary easing, balancing growth support against renewed cost pressures from energy markets, supply chain recon_guration and evolving trade policies.

Theglobaltradeenvironmentisundergoing structural transformation with economies prioritising domestic manufacturing capacity and supply chain security through higher tariffs and expanded industrial-policy support. The WTO envisages the world merchandise trade volume growth to slow from 4.6% in 2025 to 1.9% in 2026, before recovering to 2.6% in 2027. Disruptions to key maritime trade routes during the year have lifted energy and freight costs and accelerated the regionalisation of supply chains.

Growth in KECs key markets remains supportive of long-term EPC opportunity. India is projected to grow its GDP at 7.7% in FY26 and at 6.6% in FY27 (based on the RBI June 2026 estimate), retaining its position as the fastest-growing major economy and a leading contributor to global expansion. The Middle East and Central Asia region is expected to grow at 1.9% in 2026 and recover to 4.6% in 2027 as oil output normalises and large diversification programmes resume. Sub-Saharan Africa is projected to grow at 4.3% in 2026, supported by sustained electrification and infrastructure investment, while Southeast Asia continues to benefit from supply chain rebalancing and domestic infrastructure cycles.

Overall, the global economy enters FY27 in a more fragmented, regionally aligned and geopolitically sensitive con_guration. Easing financial conditions and continued investment in digital and energy infrastructure offer support; however, energy-market volatility, trade-policy evolution and conflict-related disruptions will shape the pace and durability of recovery.

INDIAN ECONOMY

India consolidated its position as the fastest-growing major economy among the G20 nations in FY26, with the National Statistical Offices Provisional Estimate placing real GDP growth at 7.7% (released June 2026). Strong domestic consumption, a steady recovery in private investment and continued momentum in public capital expenditure underpinned this performance, even as global trade and energy markets turned more volatile in the latter part of the year. Indias nominal GDP is estimated at approximately USD 4.2 trillion in FY26, making it the worlds fourth-largest economy after surpassing Japan in 2025, with the IMF projecting India to overtake Germany to become the third largest within the next 3 years.

Infiation remained well-anchored during the year, with CPI averaging close to 2.1% in FY26, comfortably below the Reserve Banks4%medium-termtarget,supported by a benign food cycle and softer core inflation. The RBI delivered a cumulative 125 basis points of repo rate cuts during CY25, taking the policy rate to 5.25% and has since adopted a measured pause in February and April 2026, considering renewed energy-cost pressures and the FY27 inflation projection of 5.1%. The RBIs GDP growth projection for FY27 stands at 6.6%, keeping India firmly the fastest-growing large economy globally over the medium term.

The Union Budget 2026-27 reinforced the governments infrastructure-led growth strategy, with a record effective capital expenditure of 17.15 lakh Crore, representing approximately 4.4% of GDP and a 9% increase over FY26. The fiscal deficit was contained at 4.3% of GDP, signalling continued credibility on the consolidation path. Sectoral allocations remain decisively skewed towards core infrastructure: Roads & Highways at 3.10 lakh Crore, Railways at 2.77 lakh Crore (+10% YoY, the highest ever), Defence expenditure at 7.85 lakh Crore (+15%), the highest allocation among all ministries, with a capital outlay of approximately 2.3 lakh Crore and Power & Renewables at over 62,000 Crore combined.

The industrial sector strengthened on the back of broad-based demand. Manufacturing capacity utilisation rose to 75.6% in Q3 FY26 (RBI OBICUS Survey), the highest in over a decade, finished steel consumption grew 7-8% to approximately 164 MT and gross FDI inflows in H1 FY26 reached USD 35.2 . billion, up 18% YoY. The PLI scheme has now catalysed cumulative investment of 1.76 lakh Crore and committed production of 16.5 lakh Crore across 14 sectors. Private capital expenditure is gaining traction, with the FICCI Q3 FY26 survey reporting 91% of firms operating at higher or unchanged output.

The structural drivers most relevant to KECs businesses remain robust. The transmission sector is entering a multi-year capex up-cycle, with the Central Electricity Authoritys National Electricity Plan envisaging 9.15 lakh Crore of investment and 1,91,000 CKM of new transmission lines by 2032. India added a record approximately 44.6 GW of solar and approximately 6.0 GW of wind capacity in FY26, supporting the countrys progress towards the planned expansion of installed generation capacity to approximately 900 GW by FY32. The ‘Make in India programme and Production Linked Incentive schemes continue to attract . investment in manufacturing, with semiconductor, electronics, electric mobility and renewable-energy supply chains witnessing meaningful greenfield activity. Indias repositioning as a ‘China

+ 1 destination has gained further 2 traction during the year and FDI inflows into manufacturing have remained healthy. Indian Railways continues to scale, with the Eastern and Western Dedicated Freight Corridors now 100% commissioned, the new Dankuni-Surat DFC announced and Kavach 4.0 deployment reaching approximately 1,452 route km. Together, these trends position the country as a structurally compelling . market for integrated EPC delivery across a power transmission, transportation, civil infrastructure, renewables and oil & gas, the core businesses of KEC International.

GLOBAL CONSTRUCTION

. INDUSTRY

6 The global construction sector entered a transition phase during 2025. While the industry recorded nominal growth, Oxford Economics estimates that real construction output contracted 4.5% in 2025, weighed down by elevated interest rates, weak commercial real-estate activity in China and Europe and project deferrals across the GCC following lower oil revenues. The sector is projected to rebound to +3.8% in 2026 as monetary policy continues to ease and project pipelines unblock. On a longer horizon, the global construction market is forecast to reach USD 16.11 trillion by 2030, driven by infrastructure-led growth in Asia and the Middle East, energy-transition capital expenditure and reconstruction demand in Europe.

The Middle East remains the single largest demand pool for international EPC players. According to MEED Projects Annual Review, GCC contract awards reached USD 213.2 billion in 2025, down 32% from the record USD 313.9 billion of 2024, but well above the pre-2023 average. The decline was concentrated in Saudi Arabia, where awards fell 48% from USD 164 billion (2024) to USD 84.5 billion (2025) as authorities recalibrated giga-project pacing. Even at the reduced level, Saudi Arabia accounted for approximately 40% of regional awards. The forward pipeline remains exceptionally deep: USD 3.2 trillion of projects are at study, design or bid stage, with a further USD 400 billion at pre-qualification, tender or bid-evaluation stage.

Saudi Arabias 2026 Budget provides for expenditure of approximately SAR 1.31 trillion and continues to support Vision 2030-led investments across power transmission, grid modernisation, water infrastructure, renewable energy and strategic urban development projects, underpinning a substantial medium term EPC opportunity pipeline. The UAE continues to invest aggressively through DEWA (AED 11.72 billion FY25 capex) and ADNOC (USD 150 billion 2023-27 plan). Across North Africa and Sub-Saharan Africa, the World Bank-AfDB Mission 300 commitment (300 million electricity connections by 2030) is unlocking transmission, distribution and renewables tendering at an unprecedented scale.

At the same time, geopolitical tensions and ongoing conflicts in parts of West Asia continue to create near-term uncertainty across the region. These developments have led to periodic disruptions in logistics, shipping routes, commodity prices and project execution timelines, while moderating investments in certain sectors. However, despite these near-term challenges, long-term infrastructure investment plans across the GCC and broader Middle East region remain largely intact, supported by energy-transition investments, economic diversification programmes and sustained spending on utilities, transportation and urban infrastructure.

India continues to offer a strong structural growth opportunity, underpinned by the Union Budget FY27s effective capital expenditure of 17.15 lakh Crore and sustained construction-output growth of 6–8% through FY27.

There is also a clear shift towards integrated and digitally enabled Engineering, Procurement and Construction solutions, with clients increasingly expecting delivery partners to provide end-to-end capabilities across design, engineering, procurement, construction, commissioning and lifecycle support. This reflects the increasing complexity of projects and the need for efficient, time-bound execution.

For the Company, this macro picture is favourable. Demand is concentrating in segments where the Company has deep capability, transmission, civil infrastructure, transportation, renewables and oil-and-gas and in geographies where it has long-standing market presence. The Saudi giga-project pipeline, the

GCC grid-modernisation cycle, Indias NEP-Transmission build-out and African electrification together underwrite a multi-year demand environment that supports the Companys 110+ country international franchise.

POWER TRANSMISSION & DISTRIBUTION INDUSTRY

Global electricity demand expanded for the third consecutive year in 2025, driven by data centre build out, industrial electrification, electric vehicle adoption and growing cooling demand from a warmer climate. The IEA estimates that total electricity sector investment reached approximately USD 1.5 trillion in 2025, the largest figure in history and now meaningfully above upstream oil and gas investment for the third year running.

Within that, the grid component is the fastest-growing segment. According to IEA World Energy Investment 2025 and Bloomberg NEF, global grid investment is set to surpass USD 400-470 billion in 2025. Looking forward, BNEF projects that global grid investment will need to rise to USD 483 billion per year by 2030 under its Economic Transition Scenario and to USD 811 billion per year under its Net Zero Scenario. The investment gap between current spending and net-zero- aligned spending remains the central planning challenge for the sector.

Three demand drivers are accelerating beyond historic trends. First, data-centre power demand is doubling on a five year horizon as artificial intelligence workloads scale; the IEA projects data centre electricity consumption could exceed 945 TWh by 2030. Second, the renewables build out is creating widespread interconnection queue bottlenecks: globally, an estimated 1,650+ GW of solar, wind and hydropower is awaiting grid connection, requiring substantial transmission expansion. Third, transmission ageing, particularly in OECD economies, is forcing replacement driven capex even before factoring in growth.

India represents one of the worlds largest grid investment opportunities. Under the Central Electricity Authoritys National Electricity Plan (2023–32), the countrys installed generation capacity is projected to reach approximately 900 GW by FY32. The corresponding transmission build out requires investment of approximately

9.15 lakh Crore through FY32, with Indias transmission line network targeted to expand from approximately 4.85 lakh circuit-km today to 6.5 lakh circuit-km by FY32 and transformation capacity from approximately 1.25 million MVA to 2.3 million MVA. This represents the planned addition of approximately 1,91,000 CKM of lines and 1,270 GVA of transformation capacity over the decade, a structural multi year tailwind for the Companys domestic T&D franchise.

Internationally, parallel build out cycles are visible across multiple markets, Saudi Arabia (NTSP grid expansion under Saudi Electricity Company), the UAE (DEWA transmission and substations), Brazil (Aneel transmission auctions), the United States (FERC Order 2023 interconnection reform) and Sub-Saharan Africa (Mission 300). Together, these markets define the demand environment for the Companys international T&D business through the second half of the decade.

In this favourable environment, the Companys T&D business continues to be the primary growth driver. In FY26, the segment contributed approximately 68% to the Companys revenues as compared to 59% in FY25, reflecting its increasing scale and importance within the overall portfolio. The Company is currently executing a large and diversified portfolio of over 110 projects across more than 30 countries, supported by its end-to-end capabilities across the transmission value chain.

The consolidated T&D business delivered strong operational performance during the year, supported by robust execution across geographies. Revenues grew 24% year-on-year to around 15,900 Crore. Order inflows remained strong, with order intake around 17,700 Crore during FY26 across India, the Middle East, CIS and the Americas. With an order book of 23,000 Crore, the T&D segment continues to constitute a significant portion of the companys overall order book, providing strong revenue visibility over the medium term.

The Company continues to witness healthy traction across key markets in the Middle East which remains a key growth region, driven by sustained investments in power infrastructure and renewable energy integration. The Company has established a strong presence in the region and continues to pursue large scale transmission opportunities, including projects involving advanced and high-voltage technologies.

In the Americas, demand for transmission towers, poles and related hardware remains robust across the United States, Mexico and Brazil. The Companys subsidiary, SAE Towers, has delivered strong growth and secured large orders across these markets, further strengthening the Companys position in the region. Other regions, including Africa and the CIS, are also witnessing a gradual improvement in market conditions, supported by increasing tender activity and infrastructure investments.

To support future growth, the Company continues to strengthen its manufacturing and execution capabilities. It operates a global network of integrated manufacturing facilities and tower testing stations and has undertaken capacity expansions over the years across its key locations, including Dubai, Jaipur, Jabalpur and Butibori (Nagpur), along with capacity augmentation in Brazil. These investments are expected to enhance production capacity, improve supply chain responsiveness and support execution across large scale projects.

The Company is also strengthening its capabilities in advanced and high-value segments, including HVDC systems, STATCOMs and digital substations, enabling it to move up the value chain. In parallel, it continues to enhance project execution through increased mechanisation and adoption of advanced technologies such as crane based tower erection, drone stringing, precast foundations and IoT enabled monitoring systems. These initiatives are improving productivity, enhancing safety and supporting faster and more efficient project execution, particularly across challenging terrains and large-scale transmission projects.

Despite strong long-term growth prospects, the sector continues to face certain challenges, including right-of-way (RoW) constraints, supply chain bottlenecks in critical equipment, volatility in commodity prices and geopolitical uncertainties impacting logistics and procurement cycles. RoW challenges, particularly in densely populated and environmentally sensitive areas, continue to impact project timelines and execution planning across the industry. The Company remains focussed on mitigating these risks through proactive planning, strong vendor partnerships, increased mechanisation and a disciplined approach to order selection.

Overall, the outlook for the T&D sector remains robust, supported by sustained global investments in grid infrastructure, energy transition initiatives and increasing electrification. With its diversified geographic presence, strong execution capabilities and continued focus on operational excellence, the Company is well placed to leverage emerging opportunities across global and domestic markets.

INDIA TRANSMISSION & DISTRIBUTION BUSINESS

Following a strong execution-led performance in FY26, KECs India Transmission & Distribution (T&D) business continued to advance key domestic projects, maintaining execution momentum across a diversified portfolio and reinforcing its market position. The business secured order intake of over 4,300 Crore during the year across transmission lines, substations and related infrastructure projects. Order inflows during the year were lower compared to the previous year, which had witnessed a high base supported by large order wins. Execution momentum remained stable, supported by improved operating efficiencies and a balanced project mix.

Order inflows during the year were supported by a series of strategic order wins across transmission lines, substations and related infrastructure projects. These included the largest-ever order from a private developer, the addition of new customers and continued repeat orders from existing clients, underscoring sustained market demand and strong confidenceinKECsexecutioncapabilities. The Company also secured multiple High Voltage Direct Current (HVDC) orders, further strengthening its presence in high value, technology-intensive transmission projects. In addition, integrated packages comprising both transmission lines and substations were secured from private developers and State Electricity Boards, reflecting the growing preference for end-to-end execution capability.

The business maintained strong execution momentum throughout the year, successfully commissioning 20 T&D projects across India. This included the installation of approximately 950 circuit kilometres of transmission lines and over 16,000 MVA of substation capacity. Key project completions included the 765/400/220 kV Bhadla III AIS Substation and the 765 kV Bhadla III-Sikar II transmission line in Rajasthan, which was inaugurated by the Honble Prime Minister of India. The Company also commissioned a 2,750 MW power pooling and evacuation system at Khavda, one of the largest transmission projects executed under a single green energy initiative. In addition, the Kudus–Aarey HVDC project was commissioned, enabling the integration of approximately 1,000 MW of green power into Mumbai and demonstrating KECs ability to deliver complex, technology-driven infrastructure projects.

Looking ahead, the Indian T&D sector is poised for significant expansion. As per the Central Electricity Authoritys National Electricity Plan (2023–32), peak power demand is projected to reach approximately458GWbyFY32,supported by planned installed generation capacity of around 900 GW. Achieving this scale of growth is expected to require an estimated investment of approximately 9.15 lakh Crore in transmission infrastructure by 2032. The plan envisages the addition of over 1,91,000 circuit kilometres of transmission lines and approximately 1,270 GVA of transformation capacity, expanding the network from approximately 4.85 lakh circuit kilometres to 6.48 lakh circuit kilometres. In addition, over 33 GW of High Voltage Direct Current (HVDC) capacity and a significant increase in inter regional transfer capacity to approximately 168 GW are planned to enhance grid reliability and facilitate large-scale renewable energy integration.

In line with these sectoral developments, KEC continues to move up the value chain by strengthening its presence in technology led transmission segments. The Company is expanding its HVDC portfolio, enhancing capabilities in digital substations and building expertise in grid balancing technologies, in alignment with Indias long-term transmission development roadmap.

The business has also significantly scaled up the adoption of mechanised construction methods to enhance execution efficiency and safety. Crane based erection was deployed across 13 projects, while drone assisted stringing was implemented over 170 circuit kilometres. Precast solutions were standardised across 14 substation projects. As a result, the "Mechanisation Index", a proprietary measure tracking the adoption of mechanised construction techniques, improved sharply from 26 to 57 on a year-on-year basis. Digital adoption also progressed steadily, with 100% deployment of iTrack, the Companys in-house project management platform, across all active projects, enabling improved erection productivity, tighter controls and real-time project monitoring and analytics.

Safety and sustainability continued to be key focus areas during the year. The Company achieved one million safe man-hours across key projects. These efforts were recognised by leading utilities and infrastructure developers. Companys tower manufacturing facilities in India also achieved Water Neutrality certification, reinforcing its commitment to responsible and sustainable operations.

Overall, the India T&D business continued to demonstrate strong growth and resilience, supported by a robust order book, improving execution capabilities and increasing participation in high-value, technology-intensive projects. With a sustained focus on operational excellence, technology adoption and integrated end-to-end delivery, the Company is well positioned to participate in the next phase of transmission infrastructure development in India.

Overall, the India T&D business continued to demonstrate strong growth and resilience, supported by a robust order book, improving execution capabilities and increasing participation in high-value, technology-intensive projects.

INTERNATIONAL T&D BUSINESS

The Companys international Transmission

& Distribution (T&D) business delivered a strong performance during FY26, supported by robust order inflows, expanding geographic presence and sustained execution across key markets. The Company recorded its highest-ever international order intake of over 11,300 Crore, representing a healthy year-on-year growth of 36%. The growth was driven by strong traction across the Middle East, Americas and other international markets.

During the year, it secured several large and strategic orders, including a major substation order of over 1,000 Crore in Saudi Arabia and its single largest order from the Gulf Cooperation Council Interconnection Authority (GCCIA), valued at over 3,000 Crore in the UAE. Geographic expansion was another key highlight, with entry into Armenia and re-entryintoEthiopia,furtherstrengthening the Companys international footprint. Execution across the GCC, CIS and Africa regions continued to demonstrate the Companys ability to scale operations and deliver complex projects across diverse geographies.

In addition, the Company secured international order inflows of around USD 225 million (approximately 2,000 Crore), including around USD 90 million from the United States market. The Americas witnessed healthy traction during the year, with order inflows in excess of USD 100 million in Brazil, along with additional orders across the USA and Mexico. This performance was supported by new customer additions and expanding engagementwithutilitiesandinfrastructure players. These developments reflect the Companys growing presence and deepening relationships in key international markets.

The Companys international performance is underpinned by a differentiated set of structural capabilities. Its manufacturing presence across multiple continents enhances proximity to key markets and improves supply chain responsiveness. This is complemented by full-spectrum EPC capabilities spanning 132 kV distribution systems to 1,200 kV ultra-high-voltage transmission lines and 800 kV HVDC systems. In addition, the Company offers a comprehensive substation and cabling portfolio, including Air Insulated Substations up to 1,150 kV, Gas Insulated Substations up to 765 kV, Hybrid Substations up to 220 kV and Underground Cabling up to 220 kV. These integrated capabilities enable the Company to execute complex, multi-technology projects across geographies and reinforce its position as a leading Indian player in the international T&D EPC market.

The Middle East continues to remain the Companys largest and most strategic international market, anchoring growth in the T&D business. Execution credentials were further strengthened during the year through the timely and ahead-of-schedule completion of key projects, including the 132 kV underground cable project for a leading Middle East utility and transmission line modification works in Abu Dhabi. Investments in power infrastructure across the region remain robust. DEWA reported investments of AED 11.72 billion during 2025, equivalent to approximately 29,788 Crore, with a significant portion directed towards transmission and distribution infrastructure.

Saudi Arabia represents one of the most significant T&D opportunity pools in the region. Saudi Electricity Company reported capital expenditure of SAR 88.2 billion, equivalent to about 2.18 lakh Crore, primarily focussed on grid expansion and smart grid upgrades. In line with these developments, the Company secured a 380 kV GIS substation order in Saudi Arabia, followed by another composite T&D order, further strengthening its credentials in one of the regions most strategic power markets.

The CIS region has emerged as the next key growth engine after the Middle East in the Companys international portfolio. Markets such as Moldova, Turkmenistan, Armenia and Uzbekistan are witnessing progressive infrastructure modernisation, particularly across energy and transmission networks. Several countries in the region are investing in transmission upgrades aimed at strengthening energy security and enhancing cross-border grid connectivity, creating a growing opportunity set for specialised EPC players.

Moldova is advancing its Energy System Development Project to modernise the grid and support renewable energy integration, while Uzbekistan and Turkmenistan are investing in strengthening transmission networks and regional interconnections. Armenia is enhancing its transmission backbone through the Caucasus Transmission Network. During FY26, the Companysuccessfullydeliveredacomplex 400 kV interconnection transmission line project in Moldova, a project of national importance aimed at strengthening the countrys energy security. The project was executed under challenging conditions, including harsh weather, logistical constraints and stringent regulatory requirements, demonstrating the Companys ability to deliver strategically important infrastructure in demanding operating environments.

Africa continues to offer a meaningful long-term opportunity in transmission, distribution and electrification infrastructure. Electricity access remains low across several Sub-Saharan markets, while multilateral funding continues to support grid reinforcement, rural electrification and network upgrades. Under Mission 300, the World Bank Group and the African Development Bank are working towards connecting 300 million people in Africa to electricity by 2030, with the World Bank targeting 250 million connections and AfDB targeting 50 million.

During FY26, the Company successfully commissioned two key projects in Burundi, increasing electricity access by approximately 7% and connecting around 7,00,000 people. These projects were executed while navigating complex terrain, regulatory frameworks and logistical challenges, underscoring the Companys capability to deliver critical infrastructure in demanding environments. With proven execution resilience and delivery credentials, the Company remains well positioned to participate in Africas evolving transmission and electrification pipeline.

In Southeast Asia and adjoining export markets, the Company continued to strengthen its credentials and expand its addressable market. In Nepal, projects were recognised for zero-incident execution, supported by drone-based stringing in difficult hilly terrain. These capabilities are particularly relevant for transmission projects in challenging geographies, where execution quality, safety performance and terrain-adapted methodologies are critical. In Malaysia, the Company completed key transmission line projects, including the Bunut–Medamit line, which received recognition for safety performance. The Company also marked its re-entry into Australia after a decade with a significant tower supply order, further expanding its presence across adjacent export markets.

The Americas continue to be an important growth platform through SAE Towers. Strong demand for transmission towers, poles and related hardware was witnessed across Brazil, the United States and Mexico, supported by expanding customer relationships and steady order inflows. New customer additions across utilities and construction companies further strengthened the Companys presence in the region and supported its international diversification strategy.

To support growth across international markets, the Company continued to strengthen its manufacturing footprint and execution capabilities. The Companys global tower manufacturing capacity is 4,23,800 MTPA across facilities in India, Brazil, Mexico and the UAE. The Company also operates four tower testing stations, including facilities capable of testing up to 1,200 kV, enabling participation in ultra-high-voltage transmission projects globally. This distributed manufacturing footprint reduces logistics costs, shortens delivery timelines, mitigates currency exposure and supports compliance with local content requirements across key international markets.

Globally, the T&D sector is witnessing a structural investment cycle driven by energy transition and grid modernisation. BNEF projects grid investment must rise to USD 483 billion per annum by 2030 under its Economic Transition Scenario and USD 811 billion under its Net Zero Scenario. Investment in transmission infrastructure is growing at a faster pace than distribution, driven by long-distance renewable energy interconnections, HVDC corridors and increasing substation density.

With an international T&D bidding pipeline exceeding 40,000 Crore, a diversified geographic footprint, strong manufacturing and execution capabilities and a technology portfolio aligned with the evolving requirements of global power grids, the Company is well positioned to participate in this long-term structural growth opportunity across international markets.

CIVIL BUSINESS

The Companys Civil business undertakes a diversified portfolio of projects across buildings, industrial infrastructure, data centres, water supply and urban infrastructure for both private and government clients. The business has progressively strengthened its capabilities to deliver end-to-end Engineering, Procurement and Construction (EPC) solutions, including complex civil and structural works across segments. Over the years, the business has moved up the value chain from standalone civil packages to executing large, design-and-build and EPC projects across high-rise developments, industrial facilities and public infrastructure. It is currently executing 65+ projects, reflecting its growing scale and execution capability across major cities. The Civil business delivered a stable performance in FY26 despite a challenging first half. Revenues exceeded 3,800 Crore, moderated by extended monsoon conditions, labour availability constraints and calibrated execution across select state-funded water projects. Execution momentum strengthened in the second half as operating conditions improved, enabling better progress across key project sites and supporting a stronger operational trajectory.

Order intake during the year remained strong, with the business securing over 5,000 Crore of new orders, more than doubling last years intake. The order inflows were well diversified across high-rise residential developments, commercial buildings, industrial facilities and emerging segments such as semiconductor and healthcare infrastructure. The business ended the year with an order book of approximately 10,000 Crore, providing strong revenue visibility over the medium term.

Indias real estate sector continues to witness strong growth, supported by urbanisation, increasing demand for premium housing and sustained expansion in commercial real estate. The commercial segment is being driven by Global Capability Centres (GCCs), demand for Grade A office spaces and growth in IT and services sectors, while residential demand remains robust across key urban markets.

In this segment, KEC strengthened its presence by executing around 15 high-rise projects across major cities. During the year, the Company secured marquee orders from leading real estate developers, including its largest commercial real estate project and its tallest structure to date (approximately 80 floors). These projects reflect the Companys capability to execute complex, high-rise developments with advanced construction and finishing requirements.

The segment offers strong opportunities driven by continued demand for residential housing, expansion of commercial office spaces and increasing investments in mixed-use developments. KECs strong relationships with marquee developers and proven execution capabilities position it well to capture this demand.

Indias industrial sector is witnessing increasing capital expenditure across manufacturing, metals, energy, automotive and emerging sectors such as electronics and semiconductors, supported by policy initiatives and the push towards domestic manufacturing. In parallel, the data centre segment continues to grow rapidly, driven by digitalisation, cloud adoption and artificial intelligence.

KEC expanded its presence in this segment during FY26 by entering the semiconductor EPC space with a maiden order from a leading industrial client. The Company advanced execution across a diversified portfolio of industrial projects, including an Electric Arc Furnace project in Ludhiana for a leading steel producer and mining infrastructure projects for leading clients, demonstrating its expertise in executing complex industrial infrastructure. In the data centre segment, the business continued to enhance its execution capabilities through the delivery of large projects and continued participation in the high-growth market.

The segment presents strong opportunities driven by increasing investments in manufacturing, renewable-linked industrial infrastructure and data centres. KECs ability to execute technically complex projects positions it well to participate in these opportunities.

Government programmes such as Jal Jeevan Mission and AMRUT continue to drive investments in water and urban infrastructure, aimed at improving access to potable water and urban services. KEC continued execution across water and urban infrastructure projects during the year. In the water segment, the Company commissioned the Bheden water supply project in Odisha, including a 23.6 MLD water treatment plant, supplying drinking water to over 55,000 households across 166 villages. Despite delays in funding allocation from clients, the business is committed to delivering the large-scale water supply schemes involving extensive pipeline networks and associated infrastructure.

Urban infrastructure development, including metro rail and airport projects, remains a key focus area supported by sustained public spending. In urban infrastructure, the Company completed the DMRC DC02 project (12.3 km) and a 6.4 km stretch of DC01, along with the Tuticorin Airport project, which were inaugurated by the Honble Prime Minister of India. These projects demonstrate the Companys capability to execute large-scale public infrastructure projects under complex conditions.

The segment continues to offer sustained opportunities driven by government investments in water supply, urban mobility, airports and social infrastructure across the country. Increasing urbanisation, expansion of metro rail networks and continued focus on improving public infrastructure are expected to support long-term demand across these segments. KECs experience in executing complex public infrastructure projects combined with its integrated EPC capabilities and strong execution track record, positions it well to capitalise on these opportunities. The business continues to strengthen execution through structured initiatives, improved planning, enhanced coordination and adoption of advanced construction technologies. Increased mechanisation, digital project monitoring and process standardisation are helping improve productivity, execution visibility and delivery timelines across projects.

Project Xcelerate, undertaken in partnership with a leading global consulting firm, is driving productivity improvement, adoption of state-of-the-art construction methods, digital tools and capability building across project sites, with deployment expanded across the business. The business has also significantly increased the adoption of mechanised construction techniques, including automated plastering systems, prefabricated reinforcement solutions and advanced equipment, reducing labour dependency and improving productivity.

Digital tools such as Building Information Modelling (BIM), AI augmented project monitoring tools and dashboards and material management platforms are being deployed to enhance planning accuracy, coordination and real-time execution visibility across projects.

Safety remains a key priority across all project sites. The Civil business achieved over 75 million safe man-hours during FY26, supported by strong safety systems, training programmes and on-ground implementation. The business received several recognitions for safety and sustainability performance, including the British Safety Council Sword of Honour for an FMCG factory project in Sri City, Andhra Pradesh, India, along with multiple International Safety Awards. It also received the Gold Award at the APEX India ESG Excellence Awards and recognition from the Indian Concrete Institute for execution excellence.

The business continues to focus on sustainable construction practices, in including efficient resource utilisation, improved waste management and . environmentally responsible execution across project sites. The Civil business is well positioned to benefit from sustained investments in infrastructure and increasing private sector participation across residential, commercial, industrial and digital infrastructure segments.

With a strong and diversified order book, expanding presence in high-value segments such as semiconductors, data centres and healthcare infrastructure and a demonstrated ability to execute complex projects, the business is expected to scale up execution and improve performance in the coming period. The focus will remain on timely delivery, strengthening execution capabilities and leveraging mechanisation and digital tools to drive productivity and support growth.

TRANSPORTATION BUSINESS

The Companys Transportation business delivers EPC solutions across railways, urban transit systems, signalling and safety technologies and ropeways. The business has developed capabilities across the project lifecycle, including electrification, track works, electromechanical systems and system integration, enabling participation across both conventional and technology-led transportation infrastructure.

Over the years, the business has been repositioning its portfolio from conventional railway electrification towards technology-driven segments such as signalling, train protection systems and urban transit infrastructure, reflecting a calibrated shift towards projects with improved execution visibility and complexity.

The Transportation business delivered a measured performance during FY26, reflecting a conscious strategy of selective bidding and portfolio realignment. Revenue and order intake during the year stood at over 1,550 Crore and over 540 Crore respectively, with a focus on projects offering better execution visibility and risk-adjusted returns.

During the year, the business made significant progress in closure of legacy projects achieving physical completion and commercial closure across several projects. This has streamlined the project portfolio, improved capital efficiency and reduced exposure to execution intensive contracts, thereby strengthening the foundation for sustainable growth.

The business continued to maintain discipline in bidding for conventional railway projects while gradually increasing its presence in technology-enabled segments such as signalling and safety systems.

Indias railway sector continues to witness sustained investments in capacity augmentation, electrification and network expansion. However, project execution remains constrained by challenges such as right-of-way (RoW) issues, dependency on traffic blocks and coordination across multiple stakeholders.

Within this environment, KEC continued execution across railway infrastructure projects, including overhead electrification and associated works. During the year, the Company completed key projects such as EPC-12 (approximately 400 km of overhead electrification), electromechanical works at the Chenab

Rail Bridge and the Nagercoil railway line project. The business maintained a calibrated approach to bidding in this segment, with limited exposure to projects involving execution on live railway tracks, thereby reducing operational complexities and improving execution visibility.

Alongside conventional railway infrastructure, there is an increasing focus on deployment of advanced signalling and safety systems across the network. KEC has been strengthening its presence in this segment through participation in automatic block signalling and related system works, while continuing to build capabilities in technology-led railway infrastructure. This segment offers relatively better execution visibility compared to conventional railway works.

The Company continues to play an active role in the deployment of Kavach, Indias indigenous train collision avoidance system. During FY26 the company implemented Kavach installation works across 197 RKM and commissioned Automatic Block Signalling over 52 RKM. Cumulatively, the company has commissioned Kavach across 667 RKM and are currently deploying the system on a further 1,780 RKM of the network.

Kavach deployment is part of a broader national programme to enhance railway safety and modernise signalling infrastructure. Compared to conventional railway projects, this segment involves higher levels of system integration and technology deployment, while offering relatively improved execution visibility.

The Companys experience in executing Kavach and related systems positions it to participate in the wider rollout of safety and automation technologies across the railway network.

Urban transit continues to expand across major and emerging cities, supported by investments in metro rail and Regional Rapid Transit Systems (RRTS), although execution timelines remain influenced by factors such as land acquisition and multi-agency coordination. KEC continues to execute metro and urban transit projects across multiple cities, with capabilities spanning electrification, electromechanical systems and associated infrastructure. During the year, projects executed by the Company, including Indias first RRTS, Ahmedabad Metro Phase-II, Kolkata Metro and DMRC Phase IV, were inaugurated.

Ropeways are emerging as a new segment within Indias transportation ecosystem, supported by the Governments Parvatmala programme and increasing private sector participation. The opportunity pipeline continues to expand as ropeways gain traction as a sustainable mobility solution for urban and difficult-terrain applications.

During the year, the Company progressed execution of the Shillong Ropeway project while continuing to evaluate additional opportunities in this segment. Leveraging its EPC capabilities and experience in complex infrastructure projects, KEC is well positioned to participate in the growing ropeway market while maintaining a calibrated approach to project selection and execution.

The business continues to focus on improving execution through better planning, mechanisation and deployment of digital tools for project monitoring and control, aimed at enhancing productivity and improving delivery predictability across projects.

The outlook for the Transportation business remains positive, with increasing investments in railway safety systems, signalling and urban transit infrastructure; however, execution challenges and moderation in conventional railway infrastructure opportunities continue to impact the sector. The business will continue to focus on strengthening its presenceintechnology-enabledsegments such as signalling and safety systems, while maintaining a disciplined approach to project selection and execution. .

OIL & GAS PIPELINES BUSINESS

KECs Oil & Gas Pipelines business undertakes end-to-end execution of cross-country pipelines, including associated station works with integrated mechanical, electrical and instrumentation systems, for crude oil, natural gas and petroleum products. The business also executes iron ore slurry pipelines and has expanded its capabilities to include piping and mechanical works for refinery and petrochemical facilities.

During FY26, the business recorded revenues of over 250 Crore impacted by subdued domestic pipeline tendering activity and significantly increased competition from smaller city-gas-distribution (CGD) contractors. Order inflows improved to approximately

200 Crore during the year, compared to over 50 Crore in FY25, driven by the Companys first orders in the Middle East. The business secured a station works project in Saudi Arabia and a terminal station works project in Benin, marking an important step in its international expansion strategy.

The Company also received direct approval for onshore pipeline works in the Middle East and submitted qualifications for pipeline and terminal maintenance projects with leading oil and gas operators. These developments expand the Companys addressable opportunity set across the Middle East and Africa, which continue to witness investments in hydrocarbon infrastructure.

During the year, the business continued execution across domestic and international projects, including commissioning of key pipeline sections and progress on ongoing pipeline and station works. Key milestones included commissioning of a major cross-country gas pipeline, enabling qualification for larger diameter pipeline projects and progress on one of the worlds longest LPG pipeline networks. The business also executed a critical Horizontal Directional Drilling (HDD) crossing for a slurry pipeline project, demonstrating its capability in complex engineering works.

Safety remains a key priority across all project sites. The business achieved over 1.46 million safe man-hours without any lost time injury during the year and received recognition for safe execution and commissioning of key pipeline projects.

Despite near-term challenges in the domestic market, the long-term outlook remains favourable. The Government of Indias plan to expand the natural gas pipeline network to approximately 34,000 km (from approximately 25,500 km currently), along with expansion of refining capacity from 256 MMTPA to over 300 MMTPA, is expected to drive future investments in pipeline infrastructure. Further, international markets are expected to provide growth avenues, supported by strengthening qualification credentials and increasing participation in opportunities across the Middle East and Africa.

CABLES & CONDUCTORS BUSINESS

KEC Asian Cables, a wholly owned subsidiary of KEC International, manufactures and supplies a comprehensive range of cables and conductors serving infrastructure, industrial and technology-driven markets across 95+ countries. The portfolio spans extra-high voltage, high and medium voltage power cables, control and instrumentation cables, railway and telecom cables and specialised solutions including solar, EV charging, submersible, green, hybrid and elastomeric cables. With two fully integrated manufacturing facilities at Vadodara and Mysuru, the business operates at the intersection of engineering precision and scale.

During FY26, the Company made meaningful advances in its high-performance product portfolio of E-beam and elastomeric cables, a segment with critical demand in defence, automotive and railway applications. Commercial production is expected to commence in FY27.

Indias cable and conductor market continues its structurally strong growth trajectory, driven by sustained public investment in power transmission and distribution, rapid scaling of renewable energy capacity, expanding 5G and _bre infrastructure, growing data centre ecosystems and accelerated railway modernisation. The shift towards underground cabling in densely populated urban centres, increasing EV infrastructure deployment and defence indigenisation programmes are creating additional demand vectors, particularly for specialised and high-performance solutions. Globally, the energy transition is reshaping procurement priorities, with buyers placing increasing weight on sustainability credentials, technical performance and supply chain resilience. Asian Cables is positioned at the convergence of each of these growth vectors.

The Cables Business delivered strong results in FY26, with revenue growing to over 2,200 Crore, a 23% increase over the previous year. Order intake stood at around 2,500 Crore, reflecting an improving competitive position across both domestic and international markets.

A standout driver of this growth was the continued expansion of the dealer and distribution network. The Company recorded 57% growth in order book from the dealer segment during FY26, a direct outcome of deepened channel engagement and the systematic scaling of its distribution footprint across geographies. This expansion reflects not just commercial progress, but growing brand trust at the market-facing level.

Operational performance was sustained through disciplined execution across transmission and distribution, renewables, industrials, telecom, data centres and railways. The Company maintained strong delivery across its core product lines while advancing its innovation agenda in parallel.

E-beam elastomeric cable development reached an advanced stage during the year, with pilot production runs in progress. This category addresses high-growth applications in defence, automotive and railway sectors, where superior thermal resistance and mechanical endurance are defining requirements. The Company also initiated a structured digital transformation programme to enhance operational efficiency and process rigour.

The business enters FY27 with a strategic agenda anchored on three pillars: portfolio advancement, network deepening and capability building. The commercial launch of E-beam elastomeric cables will mark an entry into high-performance specialised segments, expanding the Companys addressable market and reinforcing its engineering credentials. The Company will simultaneously continue scaling its dealer network, building on the strong momentum established in FY26.

In conductors, the Company is actively exploring opportunities in High Temperature Low Sag (HTLS) conductors and progressing discussions with leading carbon core suppliers, positioning the business to serve the next generation of transmission infrastructure, both domestically and in international markets.

Digital and operational excellence initiatives will continue to gain traction through FY27, building the internal infrastructure for more efficient, data driven execution at scale. With its well-diversified portfolio, planned product launches and global footprint, Asian Cables is well-positioned to capture growing demand for high-performance, reliable and sustainable cable and conductor solutions.

RENEWABLES BUSINESS

KECs Renewables business undertakes Engineering, Procurement and Construction (EPC) of solar, wind and hybrid renewable energy projects. The business has progressively expanded its capabilities from standalone solar EPC to integrated solutions covering design, engineering, procurement, construction, evacuation infrastructure and grid connectivity.

With increasing scale and complexity of renewable energy projects, the business is evolving towards multi-technology execution across solar, wind, Battery Energy Storage Systems (BESS) and emerging green hydrogen infrastructure, strengthening its positioning in next-generation energy transition projects.

The Renewables business delivered a steady performance during FY26, supported by continued execution across ongoing solar projects and participation in new-age tenders. Revenues for the year stood at over 500 Crore.

During the year, the business strengthened its presence across emerging renewable segments through participation in solar, wind and hybrid tenders, including Solar

+ BESS opportunities. The business also forayed into the wind energy segment with orders from a leading private sector renewable developer, while increasing engagement with private sector developers and industrial clients and exploring opportunities in West Asia and Africa.

Solar continues to be the largest contributor to Indias renewable energy capacity, with over 44 GW of solar capacity commissioned in FY26 in India, taking the countrys installed solar capacity to over 150 GW. It is supported by policy tailwinds and increasing demand from utilities and private developers. At the same time, the sector is witnessing a gradual shift towards reliable and despatchable renewable power, driven by rising peak demand and increasing grid complexity. KEC continued execution across large solar projects during the year, including projects at Pavagada and Bhadla solar parks. The business executed approximately 1,000 MW of solar capacity during FY26, while continuing execution across the balance capacities.

In parallel, given the need for hybrid and round-the-clock (RTC) solutions to avoid peak deficits in non-solar hours, combining solar, wind and storage technologies is essential to improve grid reliability and power availability. During the year, KEC entered the wind EPC segment and continued strengthening capabilities across hybrid renewable projects through focussed capability building, targeted hiring, cross-skilling initiatives and participation in new-age tenders. KEC has also begun participating in Solar + BESS tenders, building early-stage capabilities in storage-integrated solutions.

Safety remains a key focus across renewable energy project sites. The Pavagada project achieved over 2 million safe man-hours without lost time injury, while a large solar project at Bhadla achieved over 1.5 million safe man-hours. The projects contribute to sustainable development by enabling clean energy generation and supporting reduction in carbon emissions.

The outlook for the Renewables business remains positive, supported by continued investments in clean energy and the transition towards reliable and despatchable power solutions. The business will continue to focus on expanding its presence across solar, wind and hybrid segments, strengthening execution capabilities and participating selectively in large-scale and technology-driven projects.

FINANCIAL PERFORMANCE

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

PROFIT AND LOSS STATEMENT ANALYSIS

Revenue for FY26 stands at 23,506 Crore compared to 21,847 Crore in FY25, registering a healthy growth of 8% year-on-year. This growth was primarily driven by robust execution in the Transmission & Distribution business, supported by continued growth in the Cables & Conductors business.

On a consolidated basis, EBITDA grew by 10% year-on-year, with EBITDA margins improving by 20 basis points to 7.1% in FY26 from 6.9% in FY25.

Profit Before Tax increased to 789 Crore in FY26 from 727 Crore in FY25.

Profit After Tax stood at 606 Crore in FY26 as compared to 571 Crore in FY25.

The interest cost to sales ratio improved to 2.8% in FY26 from 3.0% in FY25.

Earnings Per Share increased to 22.75 in FY26 from 21.80 in FY25.

The Board of Directors has recommended a dividend of 5.5 per equity share, being 275% of the face value of 2 each for FY26.

BALANCE SHEET ANALYSIS

Net Worth increased to 6,160 Crore in FY26 from 5,347 Crore in FY25. Reserves and Surplus increased to 6,106 Crore in FY26 from 5,294 Crore in FY25.

Book Value per share increased to 231 in FY26 from 201 in FY25.

The Debt-Equity Ratio stood at 0.9 times in FY26 as compared to 0.7 times in FY25.

Key Financial ratios	2025-2026	2024-2025	% Change
Debtors Turnover Ratio (No. of Days)	91	81	13%
Inventory Turnover Ratio (No. of Days)	36	33	8%
Interest Service Coverage Ratio	2.2	2.1	0%
Current Ratio	1.2	1.2	3%
Debt Equity Ratio	0.9	0.7	18%
Operating Profit Margin (excluding exceptional items) %	7.1%	6.9%	3%
Net Profit Margin %	2.6%	2.6%	-1%
Return on Net Worth %	10.5%	12.1%	-13%

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

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

• Debtors Turnover Ratio= (Average Account Receivable/Total Revenue from operations) x No. of Days.

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

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

• Current Ratio = Current asset / Current liability.

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

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

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

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

INTERNAL CONTROL ADEQUACY

At KEC, Internal Control is a fundamental pillar of the Companys governance framework. The Company has established a robust and well-defined Internal Control system tailored to its scale, complexity and evolving operational requirements. This framework is integrated with the SAP ERP platform and is designed to safeguard assets, enhance operational efficiency, monitor key processes and ensure compliance with applicable laws and regulations. It supports the generation of accurate, reliable and objective financial and operational information.

The Internal Audit function conducts comprehensive audits across all key business functions and locations, with a strong focus on operational efficiency and the effectiveness of control systems. A structured audit cycle ensures that every major area of the Company is reviewed at least once every three years.

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

During FY26, key internal audit findings, along with the status of implementation of recommended actions, were regularly presented to the Audit Committee. The Committee reviewed these updates and noted the adequacy and effectiveness of the Companys internal control systems and procedures.

Employees are guided by the RPG Code of Corporate Governance & Ethics, which reflects and reinforces the values and culture of KEC and the RPG Group. The Internal Control system includes a whistle-blower mechanism that encourages directors, employees and third parties to report genuine concerns, misconduct or fraud without fear of retaliation. In exceptional cases, they have direct access to the Chairman of the Audit Committee.

ENTERPRISE RISK MANAGEMENT

The Company operates predominantly in the Engineering, Procurement and Construction (EPC) sector and has established a robust enterprise risk management framework to identify, assess and mitigate risks across its operations. With projects being executed across multiple geographies, the Company is exposed to a diverse range of risks associated with long-gestation and complex infrastructure projects. Theframeworkenablestimelyidentification of emerging risks and implementation of appropriate mitigation measures.

KECs risk management framework operates at multiple levels across the organisation and is supported by periodic reviews to ensure alignment with the evolving internal and external business environment.

Some of the key enterprise risks identified by the Company and the corresponding mitigation measures are outlined below:

1. Geography Concentration:

High dependence on a single geography may create concentration risk in growth, execution and recovery of receivables.

Mitigation: The Company continuously monitors its geographic exposure, particularly in regions experiencing heightened geopolitical uncertainty, through regular reviews of its order book, order intake and project portfolio. The strategy includes placing essential guardrails to limit overall exposure in a single geography and exploring adequate insurance coverage for the projects. Based on these assessments, the Company develops and implements action plans to effectively manage and overcome such risks.

2. Geopolitical Risks:

Political instability, regional conflicts, trade restrictions and policy changes in certain markets may disrupt supply chains, impact project execution and delay collections.

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

3. Project Execution:

Delays arising from right-of-way issues, land and forest clearances, challenging terrain, supply chain disruptions and labour availability may impact project execution, profitability and cash flows.

Mitigation: To proactively mitigate execution risks and ensure timely project delivery, the Company has established clear scope boundaries to mitigate execution risks through tender contingency provisions. Operational resilience is being driven by a workforce strategy comprising enhanced remuneration, upgraded labour amenities, alongside a deliberate shift toward mechanisation, including crane-based tower erection and automated civil equipment to accelerate timelines. Furthermore, a dynamic cost-compensation framework is in place to safeguard margins and efficiently re-negotiate project costs with clients in the event of unforeseen, external delays.

4. Commodity Price Variations:

The Company is exposed to fluctuations in the prices of key commodities such as steel, zinc, copper and aluminium, which may impact project profitability.

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

5. Legal & Contractual Risks:

Given the scale, complexity and duration of EPC projects, contractual disputes, claims and litigation may arise, potentially impacting project outcomes and financial performance.

Mitigation: The Company follows a structured contract review and approval process, supported by dedicated legal and commercial teams. Claims and contractual matters are subject to rigorous evaluation and monitoring, while learnings from past disputes are incorporated into future contract negotiations and project execution practices.

HUMAN RESOURCES

In FY26, KEC International continued to strengthen its human capital as a key enabler of business performance, with a sustained focus on building a capable, engaged and execution-driven workforce. The Companys people strategy remains aligned with driving operational excellence, strengthening leadership depth and enhancing organisational agility in a dynamic and competitive EPC environment.

Employee engagement and experience continued to improve during the year, with the Overall Happiness Quotient increasing to 85, reflecting a steady upward trend over the past three years. Improvements were observed across all key dimensions of employee experience, including work engagement and organisational culture, indicating stronger alignment, ownership and connection among employees across the organisation.

The Companys culture continues to be guided by its EXCITE framework, which emphasises execution excellence, customer focus, inclusivity, technological capability and empowerment. These cultural elements are reinforced through structured initiatives aimed at strengthening accountability, collaboration and performance orientation across teams.

During the year, the Company continued to invest in strengthening its talent pipeline across levels. Recruitment efforts were focussed on both leadership and early-career segments, enhancing capability depth and ensuring continuity in critical roles. Structured onboarding and development programmes for young professionals have contributed to faster role readiness and improved bench strength across functions and geographies.

Capability building remained a key priority, with targeted interventions aimed at improving project execution, engineering quality and functional expertise. Structured training programmes have supported standardisation and improved consistency across project sites. Focussed initiatives for early-career engineers have enabled them to take on greater responsibilities in design and engineering functions, thereby strengthening execution readiness. In addition, language and cross-cultural training programmes have enhanced the effectiveness of teams operating in international markets.

Leadership development continued through structured programmes in collaboration with leading academic institutions, complemented by internal development platforms. These initiatives are focussed on building leaders capable of driving execution excellence while fostering team engagement, collaboration and effective decision-making across complex project environments.

The Company also strengthened its digital and learning ecosystem, embedding continuous learning as a core organisational capability. Learning initiatives across digital tools, analytics and emerging technologies witnessed strong participation, supporting the development of new-age skills across the workforce. These efforts are enhancing organisational agility, improving productivity and preparing the workforce for increasing digitalisation in business operations.

Employee well-being remained an important focus area, with continued expansion of health, wellness and fitness initiatives. These programmes are designed to support employee well-being and sustain performance across demanding project environments. Diversity and inclusion also remained a priority, with diversity increasing from 5% in FY22 to 8.3% in FY26, reflecting consistent progress over the years. Initiatives aimed at supporting career progression, enhancing inclusivity and strengthening workplace support systems have contributed to a more balanced and inclusive work environment.

The Companys investments in talent, capability and culture are increasingly translating into tangible business outcomes. Enhanced engineering and tendering capabilities are supporting improved bid competitiveness, while structured capability development at project sites is strengthening execution discipline and reducing variability. Stronger leadership pipelines and improved employee engagement are contributing to higher ownership, better collaboration and increased resilience across the organisations global operations.

As of March 31, 2026, KEC, including its subsidiaries, employed 7,878 people globally. Each of these individuals plays a vital role in delivering the Companys vision and living its purpose

– "We transform lives by building sustainable world class infrastructure". Looking ahead, the Company will continue to focus on strengthening its talent pipeline, enhancing leadership capabilities and accelerating digital and functional skill development. As the EPC sector evolves with increasing complexity and technology integration, building a high-performance, agile and inclusive organisation will remain a key priority. These efforts will support sustained business performance while reinforcing the Companys position as a preferred employer across its markets.

CAUTIONARY STATEMENT

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