KNR Constructions Ltd Management Discussions

GLOBAL ECONOMY

The global economy is navigating an increasingly uncertain and fragmented environment as the West Asia conflict intensifies, geopolitical risks and disrupts energy markets. Rising oil and commodity prices, supply-chain disruptions and persistent inflationary pressures have weakened business and investor confidence, moderating global growth expectations. However, technology-led investments, resilient domestic demand and supportive fiscal measures continue to provide stability across several major economies. Even so, persistent geopolitical tensions and trade fragmentation continue to weigh on the global outlook.

According to the World Economic Outlook (April 2026), global output grew by 3.4% in 2025. The International Monetary Fund (IMF) projects global GDP growth of 3.1% in CY 2026 and 3.2%

in CY 2027, reflecting weaker momentum amid geopolitical tensions, trade fragmentation and higher energy costs.

Advanced economies are projected to grow by 1.8% in CY 2026 and 1.7% in CY 2027. Emerging market and developing economies are expected to expand by 3.9% and 4.2%, respectively. The United States is forecast to grow by 2.3% in CY 2026, slightly below earlier estimates due to softer domestic demand and evolving global trade conditions.

Persistent inflation and geopolitical uncertainty have prompted central banks to adopt a measured monetary policy approach. They continue balancing economic growth with price stability. Meanwhile, global financial markets remain sensitive to interest rate expectations, currency movements and capital flows. Investors increasingly favour economies demonstrating stronger macroeconomic resilience.

At the same time, businesses are diversifying sourcing and manufacturing through friend-shoring, reshoring and regionalisation to strengthen supply-chain resilience. While these strategies enhance long-term operational security, they also increase input costs and logistical complexity in the near term.

[Source: International Monetary Fund (IMF)- Global Economy in the Shadow of War and World Economic Outlook, April 20261

Outlook

The global economic outlook remains closely tied to geopolitical developments, energy market stability and evolving trade policies. Easing geopolitical tensions and stabilising commodity prices could reduce inflation, improve supply-chain efficiency and create greater scope for monetary easing across major economies.

However, prolonged geopolitical uncertainty, elevated energy prices and deeper trade fragmentation could sustain inflationary pressures, delay policy rate reductions and moderate investment activity. Over the medium term, continued investment in digital technologies, advanced manufacturing and supply-chain diversification is expected to improve productivity and strengthen global economic resilience.

[Source: International Monetary Fund (IMF) - Global Economy in the Shadow of War and World Economic Outlook. April 2026]

INDIAN ECONOMY

India remained the worlds fastest-growing major economy in 2025-26, driven by resilient domestic demand, sustained public infrastructure investment and continued private sector participation. Despite an uncertain global environment, the economy maintained strong growth momentum, underpinned by robust consumption, healthy investment activity and strong macroeconomic fundamentals.

According to the Ministry of Statistics and Programme Implementation (MoSPI), real GDP grew by 7.7% in 2025-26. Meanwhile, nominal GDP rose to an estimated 346.36 Lakh Crores from 318.07 Lakh Crores in 2024-25, reflecting broad-based growth across manufacturing, construction and services.

Private consumption remained the primary growth driver, supported by rising incomes and stable employment. Investment activity also strengthened, aided by sustained government capital expenditure, infrastructure development and policy measures to enhance manufacturing competitiveness and expand the countrys productive capacity.

Despite heightened global uncertainty and elevated commodity prices, inflation remained broadly contained. Continued policy support for manufacturing, digital infrastructure and industrial development further strengthened Indias investment ecosystem, while prudent fiscal and monetary management preserved macroeconomic stability.

[Sources: Press Release Pane I Press Information Bureau I ICRA. An Affiliate of Moodys I

India To Become 3rd-l argest Economy With $7.3 Tn GDP By ?030 I Press Release Page I Press Information Bureau I Press Release Page I Press Information Bureau I Production Linked Incentive (PLI) Scheme I Current Affairs I Vision IAS I Press Release Page I Press Information Bureau I doc202665884801.pdf]

Real GDP Growth (%)

E: Estimated, P: Projected

[Source: Ministry of Statistics & Programme Implementation (MoSPI) I RBI Monetary Policy Statement. 2026]

Outlook

Indias economic outlook remains positive, supported by resilient domestic demand, sustained infrastructure investment, improving manufacturing competitiveness and ongoing policy reforms. Government capital expenditure, rising private investment and expanding digital adoption are expected to strengthen productive capacity and sustain long-term economic growth.

Although global geopolitical tensions, commodity price volatility and external demand conditions continue to pose risks, Indias macroeconomic fundamentals remain strong. A stable financial system and ongoing structural reforms are expected to sustain growth momentum. Together, these strengths will reinforce Indias position among the worlds fastest-growing major economies.

The Governments continued focus on transport infrastructure, multimodal logistics and public capital expenditure is expected to drive investment in the roads and highways sector. This is likely to create long-term opportunities for infrastructure developers and EPC companies.

[Sources: Press Release Page I Press Information Bureau I ICRA An Affiliate of Moodys I Press Release Pane I Press Information Bureau!

INDUSTRY OVERVIEW Infrastructure Sector

Infrastructure remains a key driver of Indias economic growth, improving connectivity, strengthening logistics efficiency and supporting industrial development. Sustained public investment, policy reforms and rising private sector participation continue to accelerate infrastructure development across transport, urban infrastructure, water resources and energy, enhancing the countrys long-term productive capacity.

Progress across multiple segments reflects this momentum. The National Waterways network has expanded from 20 to 32 operational waterways, while 99.6% of the Broad-Gauge railway network has been electrified. Greenfield airport development and asset monetisation through dedicated REITs further demonstrate Indias commitment to building a more integrated, efficient and resilient infrastructure ecosystem.

[Source: Ministry of Railways, PIB June 20261 Ministry of Finance, Budget 2026-27]

Reinforcing this strategy, the Union Budget 2026-27 allocated a record 12.22 Lakh Crores towards capital expenditure. Continued financial support to state governments, alongside initiatives such as Infrastructure Risk Guarantee Fund, is expected to strengthen project financing, accelerate execution and encourage greater private sector participation.

[Source: Ministry of Finance, Budget 2026-27]

Major Infrastructure Schemes

?€? Indian Railways Infrastructure Scheme: 2.93 Lakh Crores capital expenditure programme to expand the network, enhance capacity and modernise railway infrastructure

?€? National Highways Development Project: 3.10 Lakh Crores investment to expand the National Highway network and develop economic corridors and expressways

?€? Special Assistance to States for Capital Investment (SASCI): 2.0 Lakh Crores of 50-year interest-free loans to states and Union Territories to accelerate capital expenditure and support infrastructure-led development.

[Source: Indian Railways Accelerates Modernisation Drive, June 2026I The Economic Times, February 2026 I The Indian Express, July 2026]

Roads and Highways

India has the worlds second-largest road network, spanning approximately 63.73 Lakh km as of March 2026, including 1,46,572 km of National Highways (NHs). This extensive network plays a vital role in supporting passenger mobility, freight movement, regional connectivity and economic development.

Over the past decade, India has witnessed robust growth and modernisation of highway infrastructure. The length of National Highways grew from 91,287 km in 2013-14 to 1,46,572 km by March 2026, a substantial increase of approximately 61%. During this 12-year period, over 55,000 km were added to the NH network, underscoring the governments sustained emphasis on strengthening road connectivity.

[Source: Ministry of Road Transport & Highways. June 2026 1 News 18, India built a 55,000 km highway June 2026]

National highway construction activity moderated during

2025- 26, reflecting a slowdown in execution momentum. As per the CARE Report, national highway construction activity declined during 2025-26 and is expected to moderate further in

2026- 27. The pace of construction is estimated to have reduced to around 25 km per day in 2025-26 and is projected to decline further to 21-22 km per day in 2026-27, primarily due to subdued project awarding, execution challenges and heightened competitive intensity.

Government investment continues to underpin sector growth. The Union Budget 2026-27 allocated a record 12.22 Lakh Crores towards capital expenditure, while the Pradhan Mantri Gram Sadak Yojana (PMGSY) received 19,000 Crores. Under Bharatmala Pariyojana, 22,590 km of roads have been completed, while PMGSY has delivered around 4.11 Lakh km of rural roads between 2014 and 2026. These investments are improving connectivity, lowering logistics costs and strengthening economic integration.

[Source: Ministry of Road Transport and Highways, June 2026]

Looking ahead, Indias roads and highways sector is poised for sustained growth, supported by continued public capital expenditure, expanding expressway networks and a strong policy focus on multimodal connectivity. Ongoing investments in national corridors, rural roads and logistics infrastructure are expected to improve freight efficiency, strengthen regional integration and create long-term opportunities for infrastructure developers.

Management Discussion and Analysis (Contd.)

Rank	State	National Highway Length (km)
1	Maharashtra	18,462
2	Uttar Pradesh	12,123
3	Rajasthan	10,733
4	Madhya Pradesh	9,263
5	Andhra Pradesh	8,683

[Source: Indias top 10 states with longest National Highway network as of June 30, 20251

Railways and Metro

Railways and metro infrastructure remain central to strengthening Indias transport ecosystem by improving freight efficiency, passenger mobility and multimodal connectivity. Continued investment in network expansion, modernisation and urban transit is enhancing connectivity while supporting economic growth and sustainable urban development.

Indian Railways is advancing through network expansion, station redevelopment, Dedicated Freight Corridors and 99.6% electrification of its 69,873-route km broad-gauge network. The Union Budget 2026-27 has further strengthened this momentum through the announcement of seven High-Speed Rail corridors spanning nearly 4,000 km and the development of an integrated East Coast Industrial Corridor, reinforcing regional connectivity, logistics efficiency and industrial growth. These initiatives, alongside ongoing network modernisation, are expected to enhance freight movement, reduce travel time and support integrated economic development.

Meanwhile, Indias metro rail network has expanded to 1,155 km across 26 cities, improving sustainable urban mobility, easing congestion and strengthening last-mile connectivity. Supported by continued network expansion, technology-driven modernisation and multimodal integration, Indias rail and metro ecosystem is well positioned for sustained growth. These developments are expected to improve transport efficiency, strengthen connectivity and advance the countrys long-term infrastructure ambitions.

[Source: Ministry of Railways, April 2026 I Press Release Page I Press Information Bureau 1

Mining

Indias mining sector strengthened during 2025-26, supported by policy reforms, digitalisation, and a strategic focus on mineral security. Regulatory reforms, technology adoption, and sustainability initiatives continue to improve operational efficiency, enhance transparency, and create a favourable

environment for exploration, mine development, and commercial mining.

The Government launched the National Critical Mineral Mission (NCMM) with an outlay of 16,300 Crores to accelerate critical mineral development and strengthen domestic supply chains. The MMDR Amendment Act, 2025 introduced Exploration Licences for deep-seated minerals, expanded private sector participation, and strengthened the framework for scientific exploration and resource utilisation.

The sectors Gross Value Added (GVA) is estimated at 5.09 Lakh Crores during 2025-26, reflecting continued growth in mining activity. At the same time, digital initiatives such as the Mining Dashboard and drone-based lease monitoring, together with sustainability measures including the 7-star mine rating framework, are enhancing governance, operational transparency, and responsible resource management across the sector.

[Source: MINISTRY OF MINES - ANNUAL REPORT]

Irrigation

Irrigation remains vital to Indias agricultural system, supporting food security, climate resilience, and stable farm incomes. Continued investment in infrastructure, system modernisation, and sustainable water management is improving water-use efficiency, strengthening agricultural resilience, and supporting income stability. Under the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY), irrigation coverage has expanded from 49.3% to 55% of the gross cropped area between 2015-16 and 2020-21.

The Per Drop More Crop (PDMC) scheme, integrated with the Rashtriya Krishi Vikas Yojana (RKVY) in 2022-23, continues to encourage micro-irrigation and other water-saving technologies. Complementing these efforts, the Prime Minister Dhan-Dhaanya Krishi Yojana (PMDDKY), launched in 2025, targets 100 low-performing districts to strengthen irrigation infrastructure, promote crop diversification, and improve agricultural productivity through focused financial support.

[Source: Ministry of Agriculture and Farmers Welfare, June 20261

Financial Assistance under Pradhan Mantri Krishi Sinchayee Yojana (PMKSY)

Beneficiary Category	Financial Assistance
Small and Marginal Farmers	Up to 55% of the Benchmark/ Unit Cost
Other Farmers	Up to 45% of the Benchmark/ Unit Cost

[Source: PMKSY. 20261

Urban Water Infrastructure

Urban water infrastructure remains critical to expanding access to safe drinking water, sewerage and wastewater management across Indias urban centres. Continued investments in water supply and sanitation are improving public health, strengthening urban resilience and supporting sustainable urbanisation.

Under AMRUT and AMRUT 2.0, with sanctioned projects worth 2.79 Lakh Crores, the Government has significantly expanded urban services. The initiatives have successfully provided around 2.53 Crores tap water connections across various cities. Furthermore, more than 7,943 urban infrastructure projects have been completed, strengthening integrated urban water management and improving service delivery. These efforts are also enhancing sewerage and septage management across centres.

As investments continue, urban water infrastructure is expected to expand access to essential civic services, deliver better environmental outcomes and support the long-term development of resilient, sustainable cities.

[Source: Cabinet approves the Atal Mission for Rejuvenation and Urban Transformation - AMRUT 2.0 till 2025-26 I Ministry of Housing and Urban Affairs, February 2026]

Modernisation and Digital Transformation

The modernisation of irrigation systems is driving the transition to a more technology-enabled and farmer-centric agricultural ecosystem. Under the Digital Agriculture Mission, significant progress has been made with the creation of over 7.63 Crores farmer IDs and the digitisation of 23.5 Crores crop plots, improving farm-level data availability, resource planning and service delivery. Further supporting this transformation, the release of 2,996 climate-resilient crop varieties is supporting precision agriculture, improving resource efficiency and strengthening climate resilience across the sector.

Looking ahead, continued investment in irrigation infrastructure, greater adoption of digital technologies and wider use of precision farming are expected to strengthen water security, improve agricultural productivity and enhance the long-term resilience of Indias farming ecosystem.

[Source: Ministry of Agriculture and Farmers Welfare, June 2026]

COMPANY OVERVIEW

Established in 1995, KNR Constructions Limited (KNRCL, KNRC or The Company) is a leading infrastructure

development company with proven expertise in Engineering, Procurement, and Construction (EPC). Over the years, the Company has built a strong reputation for engineering excellence, consistent project execution, and timely delivery across diverse infrastructure segments.

With deep capabilities in highways, bridges, irrigation systems, and urban water infrastructure, KNRCL has successfully delivered approximately 9,127 lane kilometres of road projects across 12 Indian states. Building on this strong foundation, the Company is strategically expanding its presence in mining, railways, and metro projects, supported by a robust order book of 86,725 Mn as of March 2026. Anchored by technical excellence, operational discipline, and prudent financial management, KNRCL remains well positioned to contribute to Indias infrastructure transformation while delivering sustainable long-term value to its stakeholders.

Order Book

As of March 31,2026, KNR Constructions Limiteds order book stood at 86,725 Mn, comprising a balanced mix of project types and funding sources. State Government projects account for around 39%, and Central Government constitutes 43% of the order book, reflecting the Companys strong institutional relationships. Captive Hybrid Annuity Model (HAM) projects contribute 16%, while Central Government and other projects each represent 2%.

Project	Order Value ( Mn)
Mysore to Kushalnagara (Pkg V) (HAM)	5,507
Mysore to Kushalnagara (Pkg IV) (HAM)	4,864
Khajaguda Junction & NIT Junction (EPC)	4,591
Iconic Bridge across Mir Alam tank (EPC)	3,192
Marripudi to Somvarappadu Project (HAM)	1,529
Top 5 Road Projects	19,683
Other Road Projects	6,517
Irrigation Projects	16,677
Pipeline Projects	8,324
Mining Project	35,524
Total Order Book (as on March 31, 2026)	86,725

The order book is also well diversified across infrastructure segments. Mining projects account for 41%, followed by irrigation at 19%. Road (HAM) projects contribute 16%, other road projects 14%, and pipeline projects the remaining 10%. This balanced portfolio highlights KNRCLs expanding presence across multiple infrastructure domains.

Further, as on June 30, 2026, the order book stood at 1,52,340 Mn including projects awarded during April to June 2026 and where LoAs have been issued to the Company.

All ongoing projects are located across South and East India. The Companys established operational base and deep regional presence support efficient execution, enabling seamless on-site coordination across its pan-India operations.

Financial Highlights

KNRCL focused on operational resilience and strategic diversification amid a calibrated infrastructure awarding environment. While consolidated revenue and margins contracted compared to the high base of the previous year, the Company significantly expanded its net worth to 49,718 Mn and maintained a healthy consolidated net debt-to-equity ratio of 0.49x.

2025-26 Consolidated Financial Highlights

Metric	2025-26	2024-25	Y-o-Y Change
Total Revenue	26,980.1 Mn	47,531.7 Mn	(43%)
EBITDA	7,113.5 Mn	16,253.7 Mn	(56%)
EBITDA Margin	26.4%	34.2%	(8%)
PBT	5,228.1 Mn	12,595.8 Mn	(58%)
PAT	4,368.6 Mn	10,018.7 Mn	(56%)
Net Worth	49,717.8 Mn	45,411.8 Mn	9%
Net Debt-to-Equity	0.49x	0.41x	20%

New Developments in 2025-26

Strategic Expansion

?€? Achieved significant milestones during 2025-26 through major project awards and strategic diversification into new sectors

?€? CRISIL revised the Companys credit ratings in February 2026, reaffirming the long-term bank facilities rating at CRISIL AA/Stable and the short-term rating at CRISIL A1+, while removing both ratings from Rating Watch with Developing Implications

KNRCL secured its first-ever mining project for the Banhardih Coal Mining Block from Patratu Vidyut Utpadan Nigam Ltd, valued at 48,005.7 Mn (of which KNRCLs portion is 74%) this strategic project recently obtained FT forest clearance for the site, clearing the primary hurdle towards; full operational commencement.

Secured a Letter of Award for a National Highways Authority of India (NHAI) Hybrid Annuity Mode (HAM) project in Telangana for the four-laning of NH-167 from Gudebellur to Mahabubnagar, valued at 17,340.0 Mn

followed by Incorporated KNR Manyamkonda Infra Private Limited as a subsidiary to manage the project

?€? Secured a 21,630.0 Mn Hybrid Annuity Mode (HAM) project from the Tamil Nadu State Highways Authority (TANSHA) for a four-lane elevated corridor along the East Coast Road, followed by the incorporation of KNR Mahabalipuram Infra Private Limited as a subsidiary to manage the project

Portfolio Expansion

?€? Advanced strategic diversification into the mining sector, with the Banhardih mine project receiving F1 forest clearance

?€? Expanding opportunities by pursuing railway projects, exploring large-scale solar EPC opportunities to leverage existing land banks, and advancing model MoUs for power-assured Agentic AI data centre development

Asset Monetisation and Operational Performance

?€? Executed Share Purchase Agreements to sell the Companys 100% stake in four HAM SPVs, KNR Palani, KNR Ramagiri, KNR Guruvayur and KNR Ramanattukara, to Indus Infra Trust for an expected total consideration of

15,432 Mn, with the disinvestment process expected to be completed by September 2026

Completed the transfer of KNR Palani, yielding a consideration of 2,950.5 Mn, including 900.0 Mn of cash surplus upstreamed as EPC claim

Completed the transfer of KNR Ramagiri, yielding a consideration of 2,274.4 Mn

Maintained strong execution, received Provisional Certificates of Completion (PCC) for two major Kerala HAM projects, i.e., Ramanattukara to Valanchery and Valanchery to Kappirikkad effective July 2025; received order from Greater Hyderabad Municipal Corporation for Construction of multi-level flyovers/Grade separators at two junctions and widening and Development of road (Khajaguda Junction & IIIT Junction) Contract size: 4,591 Mn

Received order from Musi Riverfront Development Corporation Limited for Construction of an Iconic bridge across Mir Alam Tank connecting Bengaluru National Highway at Shastripuram to Chintalmet under EPC Mode worth 3,192 Mn

SCOT (Strengths, Challenges, Opportunities, and Threats) Analysis

Strengths \u2022 Extensive Track Record: Decades of experience in the infrastructure sector with a reputation for high- quality execution \u2022 Execution Efficiency: Strong history of completing projects within or ahead of schedule, often resulting in performance incentives \u2022 Internal Resource Control: Extensive in-house ownership of a construction equipment fleet and a large, professional workforce \u2022 Established Client Base: Solid relationships with central authorities and various state governments	Challenges \u2022 Payment Delays: Difficulty in recovering dues from specific state- level irrigation projects, leading to cash flow delays \u2022 Operational Roadblocks: Delays caused by land acquisition hurdles and local public protests at project sites \u2022 Profitability Pressure: Intense bidding environments and high overhead costs impacting overall margins	Opportunities \u2022 Sector Diversification: Moving into high-growth areas such as mining development, railways, and metro projects \u2022 Technological Advancement: Leveraging digital tools and technology to enhance project planning, execution efficiency, safety monitoring, and operational excellence \u2022 Strategic Monetisation: Divesting stakes in completed highway projects to boost liquidity and fund new ventures \u2022 Renewable Energy Diversification: Exploring opportunities in solar and other renewable energy infrastructure to expand the Company\u2019s project portfolio	Threats \u2022 Market Competition: A highly competitive bidding landscape that forces lower pricing, impacting sustainable margins & growth \u2022 Macroeconomic Volatility: Global geopolitical tensions causing fluctuations in the costs of essential construction materials \u2022 Regulatory Dependencies: Vulnerability to delays in obtaining necessary environmental and forest clearances for new projects

Risk and Mitigation Plan

Risk	Description	Mitigation Plan
Payment Delays and Working Capital Stress	KNRCL continues to face significant outstanding receivables from state government entities, particularly in Telanganas irrigation sector. Delays in projects such as Kaleshwaram Package 4 have stalled debtor recoveries, increasing pressure on the Companys working capital.	\u2022 Maintaining rigorous follow-ups and extensive meetings with senior finance and irrigation officials to secure pending payments \u2022 Emphasising the strategic importance of irrigation projects, highlighting their role in ensuring urban water supply for major cities
Execution Roadblocks (Land and Clearances)	Project execution is often hindered by delays in land acquisition and statutory approvals, including environmental and forest clearances. For example, the mine projects require forest clearance and Gram Sabha approval, while certain road projects have encountered local protests restricting site access.	\u2022 Coordinating with authorities such as the NHAI to secure police protection and restore construction activities promptly. \u2022 Awaiting clarification from central departments on rehabilitation matters to facilitate successful community negotiations for mining projects.
Margin Compression and Competitive Bidding	Intense competition in the infrastructure sector has prompted aggressive bidding at lower prices to secure new orders. Consequently, the highly competitive environment has compressed EBITDA margins compared with historical levels.	\u2022 Diversifying the project portfolio into high- growth segments such as mining, railways and metro projects to reduce dependence on road EPC \u2022 Adopting new methodologies and operational practices to improve cost efficiency and enhance on-site productivity
Commodity Price Volatility	Global geopolitical tensions can trigger sharp increases in crude oil prices, driving up the cost of bitumen and other petroleum-based construction inputs. Such volatility creates uncertainty in project cost management and may affect overall profitability.	\u2022 Leveraging the revised MoRTH price adjustment mechanism, which shortens the adjustment cycle from three months to one month \u2022 Enabling faster pass-through of material and equipment cost fluctuations to improve project execution stability
Liquidity and Asset Concentration	Large infrastructure projects require substantial upfront equity investment, placing pressure on liquidity if capital is not recycled efficiently. Excess capital tied up in completed assets also limits the Companys ability to pursue new and diversified opportunities.	\u2022 Pursuing asset monetisation through the divestment of completed HAM project assets to infrastructure trusts \u2022 Reinvesting monetised proceeds into the expanding order book and new business verticals

Financial Overview Revenues

On a standalone basis KNRCL reported a total income from operations of 20,967.2 Mn in 2025-26, compared to 33,586.5 Mn in the previous year.

Profits

EBITDA for the year stood at 1,781.5 Mn, as against 6,259.4 Mn in 2024-25. Reflecting the moderation in operating profit, the Company recorded a profit after tax of 1,160.6 Mn, compared to 7,256.8 Mn in the previous fiscal year.

Net Worth

The Companys net worth rose to 40,548.0 Mn in 2025-26 from 39,450.0 Mn in 2024-25, reflecting a steady increase. Earnings per Share stood at 4.13, compared to 25.80 in the previous year.

Financial Ratios

Details regarding the financial ratios are given separately in the result update highlights.

HUMAN RESOURCES

KNRCL remains committed to developing its workforce, equipping employees to adapt to evolving technologies,

processes and industry practices. As of March 31, 2026, the Company had 2,500+ permanent employees, excluding contract workers and trainees.

INTERNAL FINANCIAL CONTROLS

KNRCL has established a robust internal financial control framework to promote efficient resource utilisation, ensure policy compliance and meet statutory requirements. Clearly defined approval and authorisation guidelines support these controls, reinforced by regular internal and external audits.

The Company has implemented a comprehensive internal audit framework covering key financial and operational processes across all business units. This framework strengthens the accuracy of financial reporting while driving continuous operational improvement. The Audit Committee periodically reviews the adequacy and effectiveness of the internal financial controls to ensure continued alignment with the Companys strategic objectives and regulatory requirements.

CAUTIONARY STATEMENT

This Management Discussion and Analysis contains forward-looking statements, which may include terms such as

plans, expects, anticipates, believes, intends, projects, estimates, and similar expressions, in accordance with applicable securities laws and regulations. These statements relate to the Companys future business outlook, strategic initiatives, product development, market positioning, financial performance, and expenditure plans.

Such statements are inherently subject to a range of risks and uncertainties that may cause actual results to differ materially from those expressed or implied. These include, but are not limited to, fluctuations in earnings, the ability to manage growth effectively, domestic and international competition, macroeconomic conditions in India and other key markets, challenges in attracting and retaining skilled professionals, delays or cost overruns in project execution, changes in government policies, regulatory developments, fiscal deficits, and prevailing interest rates and other financial costs.

Past performance is not necessarily indicative of future results. The Company undertakes no obligation to publicly revise or update any forward-looking statements in the event of any change in circumstances or expectations, unless required by applicable law.