(A) Economy Overview and Outlook

Global Economic Overview

The global economy in 2026 experienced slower growth and elevated uncertainty due to geopolitical tensions, persistent inflationary pressures, volatile energy prices and disruptions in global trade and supply chains due to geopolitical tensions in West Asia. According to the International Monetary Fund (IMF), global economic growth is projected at approximately 3.1 percent in 2026 and 3.2 percent in 2027, remaining below long-term historical averages.

The ongoing geopolitical conflicts and energy market disruptions exerted pressure on financial markets and commodity prices worldwide. Inflation remained one of the key concerns across major economies, driven by elevated energy costs, supply chain constraints, and relatively high interest rates maintained by central banks to preserve price stability and financial system resilience.

Advanced economies such as the United States and European Nations continued to witness moderate growth supported by resilient labour markets, investments in technology, and digital transformation initiatives. Emerging economies, however, remained vulnerable to currency volatility, higher debt levels, and imported inflationary pressures.

India continued to outperform most major global economies due to strong domestic demand, large-scale infrastructure investments, rapid digital adoption, and supportive government reforms. Increasing investments in artificial intelligence (AI), automation, and advanced technologies are expected to further support long-term productivity growth globally.

Despite prevailing uncertainties, the overall global economic outlook remains cautiously stable. Governments and policymakers continue to focus on inflation management, economic resilience, supply chain, financial stability, and sustainable growth through structural reforms and international cooperation.

Indian Economy

India maintained its position among the fastest-growing major economies globally. According to IMF estimates, nearly 60% of Indian firms are already using some form of artificial intelligence, which is above the global average and expected to significantly improve productivity and competitiveness.

A key highlight during the year was the improvement in productivity, particularly in the services sector, driven by increasing digital adoption and integration with global value chains. The manufacturing sector also witnessed gradual strengthening supported by policy reforms, government incentives, and infrastructure investments.

The Government of India continued to focus on structural reforms aimed at improving ease of doing business, strengthening manufacturing competitiveness, enhancing labour productivity, and encouraging private sector participation. Continued implementation of labour reforms, infrastructure spending, and digital public infrastructure initiatives supported economic momentum during the year. Going forward, Indias long-term economic outlook remains positive, supported by sustained infrastructure investments, favourable demographics, policy continuity, digital transformation, and strong domestic consumption.

(B) Industry Overview and Outlook

Steel Industry

The Indian steel industry posted a strong FY 2025-26, with crude steel production up over 10% YoY to ~168 million tonnes, retaining Indias rank as the worlds second-largest producer. Installed capacity reached ~220 million tonnes, on track for the 300-million-tonne 2030 target. Demand stayed healthy across construction, railways, infrastructure, and capital goods, while automotive and tractor manufacturing growth directly supported demand for KFILs pig iron and casting products. Higher exports and lower imports also restored Indias net exporter status.

Investment continued in capacity expansion, value-added products, and green steel, an area where KFIL has advanced through its Product Carbon Footprint certification at the Jejuri plant. The sector continued to face the challenges with import-dependent coking coal costs, rupee depreciation, and high iron ore prices; key input cost variables for KFILs pig iron and casting operations, alongside global trade uncertainty. The long-term outlook remains positive on strong domestic demand and supportive policy.

Seamless Tubes Industry

The global seamless pipes and tubes industry continued to witness strong growth momentum during 2025, driven by increasing investments in infrastructure, industrial manufacturing, energy projects, automotive, and oil & gas sectors. The market was valued at approximately USD 133.12

Billion in 2025 and is projected to reach USD 215.46 Billion by 2032, growing at a CAGR of 7.12 percent.

Demand for seamless tubes remained strong owing to their superior strength, durability, corrosion resistance, and reliability in high-pressure applications. Technological advancements in metallurgical engineering, heat treatment processes, and automated inspection systems further improved product quality and manufacturing efficiency. The industry also witnessed changes in supply chain strategies and procurement patterns due to evolving trade regulations and tariff policies globally. Sustainability, emissions reduction, and environmentally responsible manufacturing practices gained increasing importance among customers and regulators.

The long-term outlook for the seamless tubes industry remains favourable, supported by industrialisation, infrastructure expansion, energy transition projects, and increasing demand for high performance engineered products.

Automobile Sector

The global automotive industry continued to undergo significant transformation driven by sustainability requirements, electric mobility adoption, digitalisation, Industry 4.0 technologies, connected mobility, artificial intelligence, and smart manufacturing systems.

The Indian automobile industry delivered a strong performance during FY 2025-2026, with all major vehicle categories recording their highest-ever annual sales after seven years. Commercial vehicles recorded sales of 10.80 lakh units with growth of 12.6 percent. Positive consumer sentiment, supportive policy reforms, easing interest rates and recovery in economic activity contributed to robust vehicle demand.

Demand for high-quality engineering steel, seamless tubes, special bar quality steel, and automotive-grade materials is expected to remain strong due to increasing vehicle production and technological advancements within the sector.

Tractor Industry

The Indian tractor industry achieved a historic milestone during FY 2025-2026 by crossing the one-million-unit annual retail sales mark. The industry recorded annual growth of approximately 18.55 percent over the previous financial year, supported by favourable monsoons, improved farm income, and increasing mechanisation. The sector recorded strong growth driven by favourable monsoon conditions, improved farm incomes, rising agricultural activity, and increasing mechanisation across rural India.

Government support for agricultural modernisation, rural infrastructure development, and easier financing availability further supported industry growth during the year.

The long-term outlook for the tractor industry remains positive due to increasing focus on farm productivity, mechanisation, and rural economic development. Growing demand for tractors and farm equipment is expected to support sustained demand for engineering-grade steel and seamless tubes.

Special Bar Quality (SBQ) Steel

The global Special Bar Quality (SBQ) steel market is expected to witness strong growth over the coming years, driven by increasing demand from automotive, aerospace, industrial machinery, construction, and energy sectors. The market was valued at approximately USD 13.03 billion in 2024 and is projected to reach nearly USD 27.74 Billion by 2034, growing at a CAGR of around 7.85 percent.

SBQ steel is widely used in high-stress and precision-engineered applications, including gears, crankshafts, bearings, and industrial components, owing to its superior strength, machinability, fatigue resistance, and durability. The automotive sector continues to remain the largest consumer of SBQ steel globally. Rapid industrialisation, increasing infrastructure investments, and expansion of manufacturing activities in Asia-Pacific economies are expected to support long-term demand growth.

Input Commodities Market Update - Iron Ore Industry

Indias iron ore industry continued to witness strong growth during FY 2025-2026 supported by rising demand from the steel, infrastructure, construction, automotive, and energy sectors. India produced around 289 Million MT of iron ore during FY 2024-2025 compared to approximately 277 Million MT in the previous year.

Iron ore remains one of the most critical minerals for Indias industrial growth and contributes significantly to the countrys overall mineral production value. Increasing domestic steelmaking capacity and infrastructure investment.

The industry also experienced increasing demand for premium-grade iron ore from integrated steel manufacturers. Continued investments in mining expansion, logistics infrastructure, and commercial mining reforms are expected to support future growth.

Coal and Coke

The Indian and global coal and coke markets in FY 2025-2026 are characterised by Indias aggressive drive toward domestic self-reliance, set against a backdrop of plateauing global consumption amid sustained investments in energy security. While global thermal coal demand is flattening due to international environmental policies and renewable growth, coking coal and metallurgical coke remain in high demand due to massive blast-furnace infrastructure expansions across Asia.

India is currently the worlds second-largest coal producer and consumer. Total coal production has surpassed historic milestones, with captive and commercial blocks crossing 210 Million MT. Overall domestic output remains robust as part of ongoing efforts to substitute imports.

Regarding the Indian Coal and Coke Market, demand for coking coal is surging, driven by the National Steel Policys target of 300 MT steel capacity. Consequently, domestic raw coking coal production is targeting a scale-up to 83 MT. To curb import reliance, the Ministry of Coal has implemented import substitution policies, which have successfully reduced thermal and petcoke imports despite the continued high demand for premium met coke.

On a global scale, coal demand and trade volumes have hit a plateau. While India and China continue to expand output to ensure energy security, global production is facing downward pressure from oversupply and softening prices. Overall, global demand remains steady amid softening seaborne prices and high stock level.

(C) Risks and concerns

The Company operates in a cyclical industry exposed to various external and internal risks, including :

Volatility in raw material and energy prices.

Changes in government policies, duties, and regulations.

Changes in policies on renewable energy.

Economic slowdown impacting industrial and infrastructure demand.

Supply chain disruptions and logistics challenges.

Currency fluctuations and global trade uncertainties.

Environmental, climate-related, and sustainability compliance risks.

Technological disruptions and evolving customer requirements.

Geopolitical tensions

The Company continues to strengthen its risk management framework through strategic sourcing, operational efficiencies, technology adoption, process controls and continuous monitoring mechanisms.

(D) Cost Control

Your Company adopted following measures to reduce cost :

Strategically sourced raw material and consumables.

Installation of solar power plant to reduce the power costs.

Pulverised coal injection system with oxygen enrichment for both mini blast furnaces at Koppal to reduce the coke consumption.

Installation of bell less tops for both mini blast furnaces.

Improvement of projects through Total Productivity Management (TPM), Kaizens, involvement of cross functional teams to bring cost reductions.

Improved operational efficiencies and cost control measures at all plants have resulted in reduced consumption of consumables, stores and spares.

Improved power generation using mini blast furnace gas and thereby reducing the power cost.

Roller hearth furnace II charging method improved for accommodating more batch weight resulted in power saving at the tubes plant.

Rotary hearth furnace combustion system automated to maintain air fuel ratio and avoid excess air to reduce fuel consumption at the tubes plant.

Improvement of overall power factor of the plant resulted in additional savings at the steel plant.

(E) Outlook for the current financial year

Going into FY 2026-27, KFIL is well-positioned to capitalise on sustained demand from the automotive, tractor, and capital goods sectors, supported by planned capacity expansion and continued focus on value-added casting products. The Company will continue to strengthen its raw material integration strategy to manage input cost volatility, while advancing its green steel and sustainability initiatives following the Product Carbon Footprint certification at Jejuri. The management remains confident of delivering steady volume and margin growth, building on the operational efficiencies achieved in FY 2025-26.

For further insights on growth strategy and outlook, refer to In conversation with the Managing Director on page 22.

F) Internal Control Systems and their adequacy

The Company maintains adequate internal control systems commensurate with the size, scale, and complexity of its operations. The internal control framework is designed to ensure operational efficiency, reliability of financial reporting, safeguarding of assets, compliance with applicable laws and regulations, and effective risk management.

The Company has established appropriate policies, procedures, and monitoring systems covering financial controls, operational processes, procurement, inventory management, production, quality assurance, safety, and compliance functions.

Internal audits are conducted periodically to assess the adequacy and effectiveness of internal controls, identify improvement opportunities, and ensure adherence to policies and statutory requirements. Audit observations and recommendations are regularly reviewed by the Management and the Audit Committee.

(G) Safety, Health and Environment

Safety

The Company recognises that safety is its foremost priority and remains committed to safeguarding the environment while providing a safe and healthy workplace for all employees and contractors. The objective is to achieve Zero Harm through continuous improvement in safety performance across all operations, including routine, non-routine and outsourced activities.

The Companys Safety Excellence Journey is driven by an integrated Safety Organisation that provides governance, direction and sustainability through the Business Safety Council. This framework is further strengthened by Corporate Safety Committees, Apex Committees and Departmental Safety Committees.

To realise the vision of an injury-free workplace, the Company has identified critical activities and processes and implemented standardised High-Risk Safety Standards across all plants, including: y Working at Height (WAH) y Personal Protective Equipment (PPE) y Road Safety (RS) y Permit to Work (PTW) y Material Handling (MH) y Lock Out and Tag Out (LOTO)

The Company has also established a robust Process Safety Management (PSM) framework supported by key standards such as: y Management of Change (MOC) y Process Technology (PT) y Emergency Response Planning (ERP) y Barrier Health Management (BHM) y Human Factor Risk Profile (HFRP) These initiatives focus on strengthening operational safety, enhancing resilience and ensuring sustainable safety performance.

As part of the Safety Culture Transformation journey, the Company introduced the Safety Interaction Tool to positively influence employee behaviour towards workplace safety. Safety Interaction is a structured, proactive, two-way safety conversation conducted at the workplace to recognise and reinforce safe behaviour, identify and correct at-risk behaviour and engage employees in discussions on safety concerns and issues.

To prevent recurrence of incidents, the Company has established a comprehensive Incident Management System to ensure effective reporting, investigation, analysis and closure of incidents. The investigation process identifies root causes and contributing factors, enabling implementation of corrective and preventive measures to strengthen safety performance.

To maintain a safe workplace, Life-Saving Rules have been implemented in collaboration with DuPont Sustainable Solutions (DSS+) as part of the Consequence Management System Policy (CMSP).

Life-Saving Rules include:

#1 Reporting an Incident

Always report safety incidents irrespective of severity.

#2 Working at Height

Always ensure continuous fall protection while working at height and never work at height without a valid permit.

#3 Working Around Conveyors

Never carry out maintenance or housekeeping while conveyors are in operation, never bypass conveyor safety interlocks and never operate conveyors without safety guards.

The Company adopts a strategic approach to safety through: y Training employees on safety standards and best practices y Conducting gap assessments y Implementing corrective action plans y Conducting first-party and second-party safety audits Special safety initiatives such as SAHYOG Suggestion Scheme, SAMANVAYA - Safety Action Meetings and SAKSHAM - Action Employees Can Take have been implemented with a strong focus on accident prevention and continuous improvement.

The Monthly Safety Theme Program has been launched to strengthen safety awareness, increase employee engagement, eliminate unsafe acts and conditions and create a safer workplace.

To improve operational efficiency and promote a proactive safety culture, key safety processes have been digitalised, including:

Incident Management System (IMS)

Safety Interaction (SI)

Permit to Work (PTW) y SAMANVAYA Tracker

SAHYOG Tracker

SAKSHAM Tracker

The effectiveness of health and safety programs is evaluated through leadership demonstrations, periodic reviews, internal and external audits, legal compliance assessments and continuous improvement using the PDCA methodology. Various safety events such as Fire Service Week, Chemical Disaster Prevention Day, Road Safety Week and National Safety Day are organised throughout the year to strengthen the safety culture and encourage employee participation.

Health

The Occupational Health Centres (OHCs) at all locations are equipped with full-time medical officers and qualified medical staff to provide 24x7 emergency medical services. The OHCs include outpatient facilities for treatment of illnesses and conducting pre-employment and periodic medical examinations. The Company firmly believes that a healthy workforce is key to organisational success and has undertaken several initiatives focused on employee health and well-being.

During FY 2025-2026, annual medical examinations and special screenings for ageing employees were conducted to identify lifestyle and age-related disorders. The outpatient department catered to both medical and surgical emergencies with adequate infrastructure and medicines.

The Occupational Health Department follows an integrated approach encompassing health promotion, specific protection, early diagnosis and rehabilitation. Expert talks by internal and external specialists were conducted covering cardiology, gastroenterology, eye care, cardiac screening, NCD/ICTC screening and bone density assessment.

Weight reduction programmes and reward-based healthy weight-loss initiatives were undertaken for employees with high BMI. These initiatives facilitated early identification and intervention in cardiac and lifestyle-related diseases, thereby improving quality of life and productivity.

The Company organised super-specialty health camps, specialist doctor visits, health seminars, screening camps and awareness programmes.

In association with HCG Cancer Hospital and Vihaan Heart Care, Hubballi, cardiac awareness programmes were conducted. Health screening and nutritional deficiency assessments for Vitamin D and Vitamin B12 were conducted for women employees and Ladies Club members.

Eye screening camps were organised in association with M. M. Joshi Eye Hospital to identify causes of blindness such as cataract, glaucoma, corneal opacities and infections. Around 3,806 beneficiaries availed the benefits of these health initiatives, enabling early intervention and prevention of disease progression.

In association with the Department of Factories and Boilers, Koppal, migrant workers were screened for STDs and NCDs. The Company has signed MoUs with Apollo Hospitals and Fortis Hospitals, Bengaluru, for subsidised treatment of medical and surgical emergencies.

Additional health and wellness initiatives undertaken during the year include: y Biomedical Waste Handling and Storage Training y First Aid Training y Employee Health and Fitness Check-ups y Health awareness programmes and preventive healthcare initiatives

Environment Management

The Company has established a robust Environmental Management System (EMS) and effectively implemented it across all locations. The system helps proactively minimise environmental footprint, improve resource efficiency and ensure compliance with environmental legislation.

The EMS is certified under ISO 14001:2015 by TÜV and forms the foundation of the Companys commitment to continuous environmental improvement, pollution prevention and sustainability.

Top Management has established a clear environmental policy and regularly reviews EMS performance to ensure continuous improvement. Environmental aspects and impacts arising from operations, products and services are systematically identified, assessed and managed through defined objectives, targets and action plans.

The Company remains committed to fostering innovation while placing environmental sustainability at the core of its operations. Investments in research and development continue to support environmentally responsible technologies aimed at reducing greenhouse gas emissions, improving energy efficiency and minimising waste generation. Responsible manufacturing practices based on resource efficiency, pollution prevention and circular economy principles are implemented throughout the value chain. The Companys sustainability approach is both proactive and adaptive. Existing processes are continuously optimised to improve operational efficiency, reduce emissions and conserve natural resources such as water and energy. Comprehensive environmental assessments are conducted for all new projects and expansion initiatives.

The Company has installed a Waste Heat Recovery Boiler (WHRB) utilising Blast Furnace Gas and Coke Oven Gas for captive power generation, producing approximately 51.5 MW of electricity for in-house operations, thereby improving energy efficiency and reducing environmental impact.

Environmental Monitoring

The Company regularly conducts environmental monitoring through certified external laboratories and agencies and has implemented Online Continuous Environmental Monitoring Systems (OCEMS).

The monitoring systems continuously measure key pollutants such as particulate matter (PM2.5 and PM10), Sulphur Dioxide x) and Carbon Monoxide (CO). Real-(SO2), Nitrogen Oxides (NO time monitoring enables prompt identification of emission fluctuations and corrective actions.

Automated alert mechanisms are integrated into the monitoring systems to notify responsible personnel whenever pollutant levels approach or exceed prescribed limits. Real-time environmental data generated through OCEMS is transmitted directly to regulatory authorities, ensuring transparency and compliance. Continuous data analysis supports emission trend identification, source tracking and implementation of effective pollution control measures.

Sewage Treatment Plants (STP) and Effluent Treatment Plants (ETP), wherever applicable, are continuously monitored to ensure compliance. Treated and recycled water is effectively utilised for operations and plantation activities. Monitoring systems are regularly calibrated, maintained and cross-verified through manual sampling to ensure data accuracy and reliability. Environmental performance is also being reported through the Updapt sustainability reporting platform.

Environmental data and monitoring results are publicly displayed to promote transparency among stakeholders.

Environmental Activities and Initiatives

The Company undertook several environmental initiatives and achieved significant milestones, including:

Green Steel Certification for the Steel Division.

Quarterly mapping of Scope 1, Scope 2 and Scope 3 emissions.

Safe disposal of hazardous and other wastes through Government-authorised agencies.

Compliance with Terms of Reference (TOR) under Environmental Clearance requirements at Jejuri and Baramati plants.

Environmental Clearance from the Ministry of Environment, Forest and Climate Change (MoEF&CC), New Delhi, for Koppal Steel Plant expansion.

Consent for Establishment from Karnataka State Pollution Control Board (KSPCB) for expansion projects.

Receipt of revised Consent to Operate (CTO) for increased production capacity at Ahilyanagar and Jejuri plants.

Maintenance of ISO 14001:2015 certification.

Employee awareness programmes on Environmental Management Systems.

Hazardous Waste Management awareness sessions.

Environmental awareness competitions including essay writing, drawing and slogan writing.

Eco-friendly festival celebration campaigns. y Annual Environment Day celebrations with plantation drives.

Energy Conservation Week awareness programmes.

Sustainability Awards assessment visits and sustainability initiatives.

Biodiversity assessment around Koppal operations in collaboration with local communities and environmental groups.

Greenbelt and Environmental Sustainability Initiatives

The Company has undertaken extensive greenbelt development activities across all plant locations as part of its sustainability and Green Steel initiatives.

Key initiatives include:

Development of greenbelt areas across all plant locations.

Survey of villages within a 35 km radius to identify indigenous species.

Creation of native forests to support local biodiversity.

Establishment of an in-house nursery with over 13,000 saplings.

Completion of more than 5,000 plantations across plant locations.

Planned plantation of 6,000 additional saplings at Jejuri, Baramati and Ahilyanagar plants.

Planned plantation of 3,000 additional saplings at Jejuri under CSR and Sustainability Programmes.

Plantation of native species in surrounding villages.

Support to Municipal Corporation plantation initiatives.

Environmental awareness and safety programmes for schools and local communities.

Promotion of biodiversity conservation, ecological restoration, carbon sequestration and enhancement of local green cover.

(H) Corporate Social Responsibility

In line with the Companys mission of being a Preferred Employer and Responsible Neighbour, various CSR initiatives were undertaken focusing on Education, Health and Hygiene, Environment and Rural Development.

Education

Financial assistance for higher education and professional courses.

Scholarships for meritorious students pursuing SSLC, PUC, Diploma, Engineering, MBBS, MD, MS, Veterinary Science and Agriculture-related courses.

Financial support for school land acquisition.

Support for school projects, excursions and educational infrastructure.

Provision of educational equipment to schools, colleges and engineering institutions.

Support for workshops, seminars, skill development and educational technology initiatives.

Distribution of benches and desks to Government schools.

Infrastructure support for school buildings and playground development.

Health and Hygiene

Construction of community health centres.

Organisation of health check-up camps in villages and schools.

Specialist medical services through Orthopaedic, Gynaecology, Cardiology, Dental and Paediatric experts.

Mega medical camps in coordination with Government and private hospitals.

Specialist doctor visits to community health centres.

Financial assistance for treatment of major medical conditions.

Health and hygiene awareness programmes for women.

Medical equipment support to healthcare centres.

Blood donation camps. y Camps for differently abled individuals.

Distribution of nutritional food kits.

Rural Development

Construction of storm water drains and concrete roads.

Waste management initiatives and support to Gram Panchayats.

Office furniture and infrastructure support to Panchayat offices.

Distribution of sewing machines to women.

Financial assistance for village festivals and community activities.

Support for construction of Samudaya Bhavanas and temples.

Environment

Organisation of Kirloskar Vasundhara International Film Festival (KVVF).

Conduct of Kirloskar Vasundhara Eco Rangers Programmes.

Greenbelt development and plantation of native species.

Support for environmental awareness and sustainability initiatives.

Awards and Recognitions

During the year, the Company received several prestigious recognitions, including:

Sustainability and Net Zero Initiatives Award 2026 for Steel Plant Jejuri by USB Forum.

Institutional Safety Excellence Award 2025 from SafeTech.

National Safety Council of India Safety Award 2025 for Steel and Tube Plants.

Kirloskar Group ESG Award for KFIL Steel Plant, Jejuri.

Kirloskar Group EnCon Award for Best Sustainability Project - Tube Plant, Baramati.

National HR Excellence Award 2025 - Silver Award for Best IR Strategy.

Zero Defect Competition - 1 st Runner-Up Award by KOEL.

ESG Award under K-Group Sustainability Awards.

Best Cost Efficiency Award by Escorts Kubota.

Best Quality Performance Award by KOEL.

Green Foundry Award by the Institute of Indian Foundrymen.

Raw Material Supplier Award by the Institute of Indian Foundrymen.

2 nd Prize in IIF Southern Region Kaizen Competition 2025.

Global Environment & Sustainability Award 2025 under Environment Protection category.

Human Resource Development and Industrial Relations

The Company considers human resources as one of its most valuable assets and continues to focus on attracting, developing and retaining talent to meet current and future business requirements.

Key HR initiatives undertaken during FY 2025-2026 include:

Implementation of IKARE HRMS covering Talent Acquisition, Organisation and People Management, Learning Management System, Leave and Attendance and Performance Management System.

Safety Excellence Standards training programmes.

Continuous behavioural and technical skill development programmes.

Launch of DSS+ Safety e-Learning modules through IKARE LMS.

Launch of LinkedIn Learning for employee development.

Leadership Development Programmes with assessment through TAPL.

Management Development Programmes (MDPs) on various leadership topics.

Strengthening reward and recognition systems through Quarterly Champions Awards, SAYA, Exemplary Awards and Lakshya Awards.

Skill development programmes for apprentices, learners and contract labour. Training programmes on 5S and Total Productivity Management. Implementation of 1 Pledge - Life Saving Rules and Consequence Management System across plants.

International Womens Day celebrations and recognition programmes.

Industry-academia engagement through conferences and lectures by senior management professionals.

(l) Developments in Human Resource/ Industrial Relations

With the rapid advancement of technologies, globalisation of markets and increasing demand for efficiency and sustainability, Human Resource Development (HRD) has emerged as a critical function in the businesses. HRD focuses not just on equipping employees with technical expertise, but also on leadership development, safety training and fostering innovation to meet global standards.

The Company considers human resource to be an important and valuable asset for the organisation. Therefore, it constantly strives to attract and retain key talents for present and future business needs in order to succeed in the hyper competitive and increasingly complex global economy.

During the financial year, following programs were conducted:

Safety excellence standards were framed and intensive training to all relevant employees were given on safety interaction, incident management, work at height, lock out and tag out, personal protective equipment and permit to work standards, etc.

Management Development Programs (MDP) were organised.

Training programmes on behavioural and technical skills were organised on a continuous basis by engaging internal and external faculties to enhance competencies and skills of employees.

Biomedical Waste Handling and Storage Training.

Fire Safety Training by MIDC Fire Department.

First Aid Training by Dr. Anjali Khade.

LPG Gas Leakage Mock Drill.

PPE Exhibitions across plant locations.

Environmental Management System Awareness Programmes.

Health and Fitness Check-up Programmes.

Energy Conservation Awareness Campaigns.

Environmental Protection Oath and World Environment Day Activities.

Celebrated International Womens Day by recognising and rewarding women employees.

Organised/sponsored conferences by the educational institutions. Faculty lectures were delivered by the Senior Management of the Company.

(J) Discussion on financial performance with respect to operational performance has been covered in the Directors Report.

(K) Details relating to Key Financial Ratios

Sl. No. Particulars	Ratio as of 31 March 2026	Ratio as of 31 March 2025	% Change	Explanations, if any
1 Debtors\u2019 Turnover	6.46	6.77	(4.58)	-
2 Inventory Turnover	3.54	3.47	2.02	-
3 Interest Coverage Ratio	r	3.81	29.66	Decrease is on account of repayment of borrowings and increased earnings in current year
4 Current Ratio	1.11	1.06	4.72	-
5 Debt Equity Ratio	0.27	0.37	(27.03)	Decrease is on account of repayment of borrowings and increase in other equity due to current year profits
6 Operating Profit Margin (%)	11.96	11.52	3.82	-
7 Net Profit Margin (%)	7.33	4.43	65.46	Refer note no. 52 of standalone financial statements

Details of change in Return on Net Worth as compared to the immediately previous financial year is as given below:

Particulars	Ratio as of 31 March 2026	Ratio as of 31 March 2025	% Change	Explanations, if any
Return on Net worth (Total Equity)	13.06	8.47	54.19	Refer note no. 52 of standalone financial statements