National Aluminium Company Ltd Management Discussions

1.0 Industry Structure and Developments:

1.1 Alumina:

During the Year 2025-26, total World Production of Metallurgical Grade Alumina (MGA) was 145.229 Million Tonnes, registering an increase of about 3.51% compared to 140.304 last year. Global Alumina consumption during 2025-26 was 144.091 Million Tonnes as against 140.918 Million Tonnes consumed during 2024-25 exhibiting a YoY increase of 2.25%. China was the major contributor in both production and consumption, having 59.17% share in production and 59.00% share in consumption of Alumina. World metallurgical grade alumina demand is expected to be about 142.038 Million tonnes in 2026 against a production of 143.637 Million Tonnes, representing a surplus of ~1.6 Million Tonnes. World bauxite production during 2025 was around 417.9 Million Tonnes against a Consumption of 390.1 Million Tonnes. For 2026, Bauxite production is expected to be around 435.139 Million Tonnes. Guinea has been the major supplier of Bauxite followed by Australia, Brazil & Indonesia. e outlook for Bauxite prices remains bearish throughout 2026 due to higher production expectations (in Guinea) and risks surrounding bauxite consumption (in China) correlated to the Smelting production cap. Moreover, the growth in seaborne Bauxite trade remains constrained in 2026 with regulatory approval delays postponing the ramp-up of refinery expansions in China and unclear Bauxite production RKAB Quota in Indonesia.

1.2 Primary Aluminium:

World production of Aluminium during the year 2025-26 was about 74.62 Million Tonnes, registering a rise of 2.25% compared to the year 2024-25. Meanwhile, world consumption of Aluminium grew by 1.72% from 73.19 Million Tonnes in 2024-25 to 74.45 Million Tonnes in 2025-26. e market, thus, registered a meagre surplus of around 0.17 million tonnes during 2025-26. China was the largest producer as well as consumer during the year, contributing 59.35% share (i.e. 44.29 Million Tonnes) of the world production and 62.23% (i.e. 46.33 Million Tonnes) of the world consumption of Aluminium. China registered a production growth of 2.4% against a consumption growth of 2.3% during 2025-26, whereas the rest of the world exhibited a 2.1% growth in production and 0.7% consumption growth during the same period. During the period, Aluminium demand saw positive growth across several key consuming regions, including India, Turkey, Europe and Indonesia, while Taiwan, Russia, Japan, Canada, Mexico, USA and ailand experienced a decline. Global Aluminium metal stocks at the end of 2025-26 registered a slight increase of 1.68%, closing at 10.356 Million Tonnes compared to 10.185 Million Tonnes in 2024-25. e LME Stocks however witnessed a ~9.9% decline in stock during FY 2025-26 indicating supply crunch. In 2026, with supply curtailments evidenced during early part of the year due to geo-political macro factor and demand remaining robust, stock is expected to further decline to new lows.

In India, during FY 2025-26, consumption of Aluminium increased by 11.4% from 5.5 Million Tonnes in FY 2024-25 to ~6.1 Million Tonnes vis-?-vis a production growth of 1.4% from 4.2 Million Tonnes in FY 2024-25 to 4.3 Million Tonnes. e Exports of Aluminium from India also witnessed a decline by 5.9% indicating robust Domestic demand. e Alumina prices experienced significant volatility trending downward from earlier highs as global supply recovered through major capacity expansions outpacing demand & low production costs (supported by ample Bauxite availability), driven majorly by Indonesia, Vietnam & China. Incremental new capacity from Asia (China, Indonesia & India) and other regions (Guinea, Ghana etc.) is expected to keep the market well-supplied thereby keeping prices subdued within $300-315/tonne range on an average. Geopolitical disruptions (e.g., shipping routes) or sudden Aluminium demand surges could cause short-term spikes, but the structural surplus is expected to dominate.

e average Aluminium prices during financial year 2025-2026 was $2,772/ Tonne against previous year average of $ 2526 / Tonne marked by bullish shi_ due to policy interventions (China capacity ceiling, tariffs, CBAM in Europe), low exchange inventories, geo-political turmoil in Middle East leading to capacity curtailments and strong end-use demand (especially energy transition sectors). Overall, Aluminium prices have remained noticeably stronger and 2026 shapes up to be a year of "Great Rebalancing" marked by a "Supply driven Market Shi_".

2.0 Strengths and Weaknesses:

2.1 Strengths:

Aluminium, the commonest metal in Earth exhibits a remarkable utility in manufacturing demonstrating significant strength through robust demand surpassing GDP growth. e consumption of Aluminium is poised for growth, fueled by sectors like energy transition, electric vehicles (EVs), data centers, and sustainable packaging. Aluminums novel properties like malleability, ductility and corrosion resistance establishes it as a metal for varied industries. Indias prominent position as one of the worlds largest bauxite producers with over 50% of the nations substantial bauxite reserves concentrated in the Eastern state of Odisha & Andhra Pradesh, ensures stable supply of Bauxite to refining thereby reducing import dependency and providing cost advantages. At about 4.3 Million TPA, India has the second-largest Aluminium production in the world after China. Indias domestic demand for Aluminium is expected to grow from 6.2 Million Tonnes in 2025-26 to 8.0-8.5 Million Tonnes by 2030. However, Indias per capita Aluminium consumption of 3.4 kg compared to the world average of 12 kg indicates immense consumption potential and with ambitious development & investment plans by GoI in infrastructure including railways and airports, Renewable (EV/Solar/grids) energy and automobile sector, Indias demand for Aluminium is self-assured towards positive growth territory. Additionally, GoIs impetus on recyclability of Aluminium value chain, provides significant advantage in environmental sustainability and global competitiveness through responsible ESG goals.

2.2 Weaknesses:

Aluminium Smelting in India remains highly energy intensive and coal dependent. Considering the limited coal reserve and pollutant nature of coal-fired power plants impacting on the environment and thus remains a perennial weakness. With regulatory interventions in carbon pricing (EU-CBAM, Korea-

ETS, Indonesia-IDX Carbon etc.) and nascent staged India-CCTS, the differential Carbon Tax is expected to impact the competitiveness of the Indian produced Aluminium & products in overseas market. Slower RE integration due to intermittency and grid constraints have widened the Emission intensity and transition execution. Indian Aluminium industry needs to focus on pioneering ways of reducing the cost of production through sustainable and extensively researched alternatives of energy (like RE sources, Hydrogen based Power plant etc.) and increasing operational efficiency (through application of retrofit inert anodes, Waste Heat Recovery (WHR) etc.). Transitioning to green Aluminium involves overcoming immense technical hurdles and decarbonization tech (like Small Modular Reactors (SMR) or inert anodes) demands massive CAPEX and infrastructure.

In addition to the above, the fragmented nature of the Secondary sector which is still import dependent, have led to decline in the export earnings. With limited value addition capabilities inside the country, development of new products/applications through investments in R&D remains a weakness impacting global competitiveness. Furthermore, lack of reliable coordinated multimodal logistics network for efficient supply chain management resulting in raised costs, extended lead time and port congestions acting as an impediment. Limited seamless integration of rail, inland waterways, coastal shipping and port logistics remain inadequate in providing last-mile connectivity which impacts transportation costs, inventory build-up, working capital lock-in, and delays in raw material inflows or finished goods outflows.

3.0 Opportunities and reats:

3.1 Opportunities:

Global Aluminium demand (primary and secondary) is expected to increase by almost 40% by 2030 w.r.t. the base year 2020. While demand remains robust, the global supply side is facing systemic pressure of Chinese Capacity ceiling, Smelting vulnerability due to energy intensity (America & EU) and policy shi_s (CBAM, Green Aluminium premium etc.). Being one of the prominent production center for Aluminium, there lies an opportunity with Indian primary producers to ramp up capacity to meet the global demand growth. Transiting to clean energy technologies, in response to the urgent need for climate action through a phased shi_ focusing on renewable energy in the short term, nuclear/hydrogen power in the medium term, Industry 4.0 (including Internet of ings (IoT) and Artificial Intelligence (AI)) and carbon capture technologies for the long term is the roadmap to be followed to decarbonize and supply to sustainability-conscious export markets. Mass utilization of advanced rail/river-based network (i.e. CTO rakes, Coastal vessel shipments) and multiplier reforms from Government initiatives like PM Gati Shakti, National Logistics Policy, Dedicated Freight Corridors (DFCs), Sagarmala, and development of Multimodal Logistics Parks (MMLPs) offer a pathway to reduce logistical bottlenecks, standardise costs and improve efficiency. Indias Aluminium demand is projected to grow at a CAGR (nearer to GDP) to 30 Million Tonnes by 2047 driven primarily by massive urbanization, infrastructure projects and the clean energy transition. e push for EVs has created a massive opportunity for Aluminium cast alloys (due to its high strength-to-weight ratio), driven by the need for lightweight metal that enhance fuel efficiency and extend battery life. e aerospace Aluminium market in India is projected to grow at a CAGR of 7.1% fueled by increasing commercial aircra_ licenses, defence modernization and maintenance overhaul (MRO) schedules niching the demand for advanced Aluminium-lithium alloys. Additionally, thrust on Circular economy shall enforce contribution augment of recycled Aluminium (presently around 18-20%) to 50% by 2070 creating a highly sustainable and cost-e_ective growth avenue. In the Electrical sector (GoI Revamped Distribution Sector Scheme (RDSS) and National Electricity Transmission Plan 2032), the transition towards green energy sources will strengthen the sectoral demand for Aluminium wire-rods & conductors. In the infrastructure sector, GoIs ambitious initiatives like; Bharatmala Project, Dedicated Freight Corridors, Vande Bharat Express transportation, Sagarmala Project, Smart Cities Mission and Pradhan Mantri Awas Yojana will be the enabler for transformation of landscapes and shall provide essential impetus to Aluminium consumption.

3.2 reats:

Energy-intensive & fossil-fuel dependent power poses a significant challenge for Indian Aluminium industry. Environmental regulations (EU-CBAM, CCTS-India etc.) demand substantial investments in cleaner technologies and waste management. Geopolitical tensions (Middle-East), Coal/power swings and RE integration challenges poses definite threat to the Indian Aluminium sphere. Tari_s cost (US), Compliance costs (Carbon tax) and Geopolitical energy disruptions elevate costs.

Persistent infrastructure gaps, urban/port congestion and slow modal logistical integration exacerbate supply chain disruptions, especially during peak demand or external shocks (e.g., container shortages or rerouting) thereby raising overall costs and limiting export competitiveness. Potential inventory builds, competition from other producers, and stricter domestic environmental/mining norms has been an age-old threat to the industry. Global disruptions from trade wars/geopolitics etc. hit availability of critical minerals which are alloying material to Aluminium forcing cheap Asian imports through FTA routes which erode market share.

Additionally, the lack of carbon pricing/green procurement policy leaves green investments unrecovered, threatening net-zero alignment and in high-value sectors such as aerospace and defense which have rigorous & expensive qualification cycles, such lacuna creates a rigid barrier to entry and derails industrys ability to innovate. Coherently, Aluminium also faces intense competition from alternative materials like advanced plastics, composites, advanced steel and titanium which although maynt be close substitutes but in specialized markets such as medical equipments & aerospace have the utility to substitute. is warrants Aluminium producers to continually innovate to avoid being phased out of high-performance structural VAP segments.

In accumulation to the above, other perpetual threats to the domestic Aluminium industry include potential downturns in the economy, fluctuations in global prices/exchange rates and cheaper Aluminium imports.

4.0 Segment–Wise Information:

	Chemicals (Alumina)		Metal (Aluminium)		Un-allocable		Total
Particulars	in crore	Share (%)	in crore	Share (%)	in crore	Share (%)	in crore
1. Revenue from operation	4,885.24	27.38	12,924.61	72.43	33.20	0 .19	17,843.05
2. PBT (Before Interest, exceptional items)	2,047.88	26.03	5 ,579.43	70.92	239.94	3.05	7,867.25
3. Capital Employed#	3,467.30	21.61	3 ,523.93	21.96	9,052.72	56.42	16,043.95
4. ROCE (%) (2/3)		59.06		158.33		2.65	49.04
5. PBIT Margin (%) (2/1)		41.92		43.17		722.73	44.09

#Capital employed under "Unallocable Common" includes cash & bank balance at Corporate and assets of Wind Power Plants.

5.0 Outlook for Future:

5.1 International Outlook:

e Global Aluminium market is expected to grow at 4.5% CAGR (approx.) during the period 2026–2033. is growth shall primarily be driven by increasing demand from various end-use industries, including automotive, solar power, construction, packaging, and electrical. It reflects a structural shi_ driven by transportation, construction and the accelerating green transition that is embedding Aluminium deeper into global supply chains. In 2025, the end-use sectoral percentages were like (transportation & automobile: 28%), (building and construction: 22%), (Packaging: 16%), (electrical and electronics: 15%), (industrial applications: 8%) and (others: 11%).

Chinas production ceiling at 45 Million TPA lags its consumption need of 46 Million TPA making it a net importer. Albeit, Chinese producers seek to relocation of production capacities (especially to Indonesia) with riders, including high-carbon power dependence, slow alumina integration, infrastructure and financing bottlenecks, and policy uncertainty. However, consumption in rest of Asia is expected to remain robust in 2026, witnessing adequate demand especially from transport & infrastructure. Aluminium industry is however, expected to remain in structural deficit in 2026 but margin of deficit shall be dependent on the Middle-East curtailments and Capacity expansion timelines considered in projection for 2026.

e strong demand for light weighting & sustainable automobiles intensi_ed Aluminium use. e rapid adoption and scale-up of electric vehicle (EVs) production (battery housings, structural body components etc.) added to overall demand. Infrastructure expansion and real estate activity continue to provide the base to Construction demand. Developing economies emerge as new consumption regions for Aluminium rolled products (particularly in roo_ng and building materials). Aluminium foil and beverage cans remain resilient owing to sustainability policies and Aluminium circularity. Rising global consumption of canned beverages alongside the shi_ toward recyclable packaging formats, continues to sustain demand for sheets, foil and aerosol cans. Global energy transition remains a decisive driver for Aluminium consumption in electronics & electrical sector with demand coming from Solar panel frames, wind turbine components, grid upgrades and 5G transmission infrastructure. Artificial intelligence (AI) has also added new layer of absorption with AI data centers requiring substantial Aluminum extrusions thereby increasing demand for Billets. Meanwhile, consumer electronics manufacturers continue to favour aluminium for its thermal conductivity in heat sinks, casings and high-performance components.

Machinery and equipment manufacturing, central to Industrial applications, makes Aluminium the central choice driving demand for wire rod, extrusions and other semi-finished products. Additionally, rising geo-political wars have warranted infiated defence spending and large-scale government infrastructure investments thereby supporting diversified applications.

Overall, Aluminiums growth is not con_ned to a single industry or geography. It is embedded in vehicles becoming lighter, cities becoming taller, grids becoming smarter and packaging becoming more circular. However, it remains vulnerable to power costs (competing with AI Data Centers for Power contracts), trade tariffs, potential geopolitical disruption, supply uncertainty, sustainability and regulatory pressure.

5.2 Domestic Outlook:

e domestic primary Aluminium consumption in India demonstrated robust resilience throughout FY 2025-26, registering an increase of 8.0% year-over-year reaching 3.10 Million MT. Indias total aluminium consumption, encompassing primary metal, scrap, and imports, experienced substantial growth in FY 2025-26, reaching ~6.12 Million MT, an 11.4% growth compared to the previous fiscal year. Domestic metal production reached 4.3 Million MT, marking a 1.4% increase over the previous year. India is projected to remain the fastest-growing economy. As per RBI, Indias GDP growth was estimated at 7.7% for FY 2025-26 vis-?-vis 7.1% in FY 2024-25. Indian Aluminium Market is expected to grow at a CAGR of around 6.2% – 7.8% till 2030 based on consensus forecast. Indian Aluminium demand is expected to see healthy growth due to strong government infrastructure development plan, urbanization and growing focus on lightweight vehicles which designates to sectoral demand from Transportation & Automobile, Power & electrical, Construction & Infrastructure, Packaging, Renewable energy & electrification (Solar/EV/Grid). e major consumption sectors in India are electrical (48%), construction (13%), automotive &

Transport (15%), consumer durable (7%), machinery & equipment (7%), packaging (4-6%), others (6%). e demand for Aluminium in India is expected to remain upbeat with the increasing use in new applications, such as electric vehicles and renewable energy technologies. India is actively pursuing reductions in carbon emissions and oil import dependency as part of its broader climate and energy security goals, GoI is prioritising accelerated adoption of electric vehicles (EVs) (30% overall EV penetration by 2030). Aluminium plays a key enabling role in EVs by enabling significant vehicle light-weighting, which improves energy efficiency (6–8%) and extends driving range (10–15%). e Indian primary Aluminium industry faces persistent challenges, including rising imports of value-added products, pressure on domestic market share in downstream segments and increasing production and logistical costs. Global risks such as trade tariffs, supply chain disruptions, geopolitical tensions in West Asia, and currency volatility add further pressure. Cost competitiveness is hampered by non-competitive energy prices and inconsistent coal linkage for the non-power sector. With installed primary Aluminium capacity of approximately 4.2 Million TPA and ongoing expansions in smelting and downstream facilities (both from Primary producers & Downstream manufacturers) realigned to National Economic Growth, Energy transition & Sustainability and Atmanirbhar Bharat goals, India is on track to meet Aluminium demand of around 6.0-6.2 Million TPA.

A snapshot of Aluminium Production, Domestic sales and Exports by Primary producers, along with Aluminium consumption in India, is tabulated hereunder:

Description	2025-26	2024-25	Change (%)
Aluminium Production (Mln. MT)	4.294	4.237	1.4%
Aluminium Domestic Sales (Mln. MT)	2.643	2.485	6.3%
Aluminium Export Sales (Mln. MT)	1.648	1.751	(5.9%)
Aluminium Imports of Metal / Products/Scrap (Mln. MT)	3.479	3.011	15.5%
Total aluminium consumption (Mln. MT)	6.122	5.497	11.4%

Source: (a) NALCOs performance data, Primary Producers data. (b) CRU Aluminium Monitor.

(c) Ministry of Commerce and Industry, Export Import data bank.

6.0 Risk Management:

e Company has a Risk Management Policy, which inter-alia incorporates guidelines issued by Government of India from time to time. Risk Management is undertaken as a part of normal business practice and that as separate tasks at set time. e Company has a Risk Management Committee at the Board level. e Committee reviews the exceptional Risk Reports and advises remedial measures from time to time. e risk mitigation measures are periodically reviewed to ensure that executive management controls risk through means of a properly defined framework. A periodical review is made to identify new risk areas along with mitigation plans. For the identified risks, the nominated risk officers maintain risk registers in prescribed format which are also overviewed by Internal Auditors of the Company and at Senior Management level. Deviations, if any, are reported to the Risk Management Committee.

7.0 Internal Control Systems and their Adequacy:

e Company has a well-established and adequate system of internal control commensurate with the size and nature of its business.

Companys Internal Control System has been designed to provide for:

a) Compliance with applicable statutes, policies & procedures, rules & regulations and delegated authority.

b) Adherence to applicable Indian Accounting Standards and Material Accounting Policies.

c) Proper recording of transactions & timely reporting.

d) Effective use of resources and efficient operations.

Safeguarding of assets.

As per Section 134(5)(e) of the Companies Act, 2013, the Directors have overall responsibility for ensuring that the Company has implemented system and framework of Internal Financial Controls, which are adequate and operating effectively.

e Company has well-designed policies, procedures & guidelines in place to ensure control of its different areas of business operations and reporting. is includes delegation of powers, various manuals, rules, policies and guidelines formulated by the Company from time to time. e approved policies, procedures & guidelines are effectively and responsibly being used while executing the business of the Company. e Company has developed & implemented an Internal Financial Control framework duly approved by the Audit Committee which includes internally entity level policies/processes and operating level standard operating procedures primarily aiming at bringing awareness amongst the offcials dealing with affairs of the Company to ensure adherence of the policies, procedures, guidelines designed and put in place for effective control. is provides the Directors with reasonable assurance regarding the adequacy and operating effectiveness of controls concerning reporting, operational, and compliance risks.

Financial Statements are prepared in compliance with applicable Indian Accounting Standards and based on the Material Accounting Policies duly approved by the Audit Committee and the Board. ese Policies are followed uniformly across the Company. e Accounting Policies supported by standard operating procedures are reviewed and updated from time to time. e Company uses ERP Systems as a business enabler and also uses it to maintain the Books of Account. e Standard Operating Procedures and transactional controls built into the ERP Systems ensure proper recording and maintenance of records. e systems, standard operating procedures and controls are reviewed by management from time to time.

e Company has incorporated in its Internal Financial Control framework a detailed checklist covering all relevant areas affecting financial reporting to ensure adequate internal control over financial reporting.

e Company has entrusted its internal audit function to external Chartered Accountants Firms/Cost Accountants Firms to carry out audits at all locations and functional areas. e internal auditors have access to all the information in the organization which has been largely facilitated by implementation of ERP and e-office across the organization. e observations of internal auditors arising out of audits are periodically reviewed at an appropriate level and compliances are ensured.

Material observations of internal auditors are submitted to the Audit Committee for its review, analysis, and advice to further strengthen the internal control system. Action Taken Report thereon is submitted to the Audit Committee periodically.

During the year, controls were tested and no reportable material weakness in design and effectiveness was observed as certified by Internal Auditors and as opined by Statutory Auditors in their report. e Company recognizes that the internal control framework needs to be regularly reviewed and revised to ensure that such systems are reinforced on an ongoing basis in consonance with changing business environment.

8.0 Discussion on Financial Performance with respect to Operational Performance:

8.1 Financial Operation: 8.1.1 Revenue from Operation:

in crore

Particulars	FY 2025-26	FY 2024-25	Change %
Export Turnover	4,701.54	5,516.97	(15)
Domestic Turnover	13,027.69	11,145.24	17
Turnover	17,729.23	16,662.21	6
Other Operating Income	113.82	125.42	(9)
Revenue from Operation	17,843.05	16,787.63	6

Notes:

(a) Increase in sales during the current year is mainly attributable to increase sales volume of Chemical (11,06,084 to 14,46,132 MT, 31%) and Aluminium (from 4,60,714MT to 4,74,319MT, 3%).

(b) During the year, there is an increase in average LME price by 26% from $2,202 to $2,767. is has resulted in increase in average sales realization of Aluminium from _2,39,676 to _2,71,571 per MT as compared to the previous year. However, Chemical-FOB price have decreased (by 37%) substantially from $595 to $376 in the current year.

(c) Other Operating Income during the year has decreased from _125.42 crores to _113.82 crores as compared to the previous financial year mainly on account of decrease in export incentive for lower realisation of Alumina.

8.1.2 Other Income (Non-operating):

in crore

Particulars	FY 2025-26	FY 2024-25	Change %
Other Income	665.83	357.01	86.50

Note: Other non-operating income is higher as compared to the previous year mainly on account of increase in interest income due to higher investible surplus.

Note: Other income includes operating income (incentive on export sale and generation of renewable energy), scrap sales and non-operating income (income from investment in FD, Mutual fund and other miscellaneous income).

8.1.3 Expenditure:

in crore

Particulars	FY 2025-26	FY 2024-25	Change due to production (%)	Change due to price escalation (%)	Total Change (%)
Raw Materials	2,387.75	2,063.32	1.49	14.23	15.72
Power & Fuel	2,728.59	3,165.94	(6.32)	(7.49)	(13.81)
Employee Benefit Expenses	1,721.20	1,786.47	-	-	(3.65)
Stock Accretion/Depletion	173.72	(90.20)	-	-	(292.59)
Other Expenses	2,885.01	2,297.46	-	-	25.57
Finance Cost	99.80	58.97	-	-	69.24
Depreciation, Amortisation and Impairment	745.36	727.58	-	-	2.44
Total	10,741.43	10,009.54	-	-	7.31

Notes:

(a) Increase in raw materials compared to the previous year is primarily attributable to increase in the price of Caustic soda, CP Coke and Al. Fluoride.

(b) Decrease in Power & Fuel expenses compared to the previous year is mainly attributable to use of captive coal from Utkal Coal Mines, the expenditure on excavation of captive coal is reported under other expenses. Prices of purchased coal and fuel have also decreased as compared to previous year. Removal of GST compensation cess on coal w.e.f 22.09.2025 also contributed towards reduction of power & fuel expenses.

(c) e decrease in Employee Benefit expenses is mainly attributable to superannuation of employees.

(d) e other expenses have increased by 25.57% as compared to the previous year mainly due to higher volume of excavation of coal from Utkal Coal Mines [28LMT to 40LMT], increase in royalty on bauxite due to higher LME price, expenditure on maintenance & consumables due to increase in production, increase in CSR obligation and provision made for disposal of ash obligation.

(e) Finance cost have increased mainly due to interest on litigation settlement.

(f) Expenditure on depreciation during the current year is higher due to capitalization of assets.

Note: Other expenses includes repair & maintainence, consumption of stores and spares, excavation and transportaion of coal from Coal Mines, other manufacturing expenses, general administrative expenses, stock accretion and depletion, finance cost and S&D expenses.

8.1.4 Profit A_er Tax and Earnings Per Share:

in crore

Particulars	FY 2025-26	FY 2024-25
Profit before Tax	7,767.45	7,135.10
Tax Expenses	1,951.69	1,810.43
Profit A_er Tax	5,815.76	5,324.67
Earnings Per Share (of 5/- each)	31.67	28.99

8.1.5 Dividend Particulars:

Particulars	FY 2025-26	FY 2024-25
Interim Dividend (%)	210%	160%
Final Dividend* (%)	20%	50%
Total (%)	230%	210%

*Final dividend @ 1 per share recommended by the Board for approval by shareholders in the ensuing AGM.

8.2 Financial Positions:

Particulars	As at 31.03.2026	As at 31.03.2025	Change %
Assets
Property, Plant & Equipment	6,749.95	6,799.04	(1)
Capital work-in-progress	6,296.00	4,934.67	28
Intangibles	897.92	949.20	(5)
Intangible assets under development	2.51	1.53	64
Investments	792.54	1,014.53	(22)
Inventories	1,834.90	1,908.83	(4)
Trade Receivables	214.68	186.39	15
Cash & Bank	8,407.74	5,426.73	55

 

Particulars	As at 31.03.2026	As at 31.03.2025	Change %
Loans	115.67	107.25	8
Other Financial Assets	64.57	86.37	(25)
Current Tax Assets	223.39	319.30	(30)
Other assets	1,203.58	1,388.64	(13)
Total	26,803.45	23,122.48	16
Equity & Liabilities
Equity share capital	918.32	918.32	-
Reserve & Surplus	20,944.44	17,127.44	22
Deferred Tax Liability	725.59	791.14	(8)
Trade payable	813.36	749.24	9
Borrowings	0	124.22	(100)
Lease Liabilities	59.83	57.52	4
Other Financial liabilities	1,922.53	1,963.47	(2)
Provisions	572.21	488.05	17
Current Tax Liabilities	4.82	39.66	(88)
Other Liabilities	842.35	863.42	(2)
Total	26,803.45	23,122.48	16

Notes:

(a) Decrease in Property Plant & Equipment is mainly due to current year depreciation charged more than the value of assets added during the year.

(b) ere is an addition in the capital work-in-progress due to ongoing 5^th Stream Expansion at Refinery.

(c) Carrying amount of Intangible assets has been decreased mainly due to amortisation during the current year.

(d) Intangible assets under development increased due to expenditure made on ongoing Pilot Project - Recovery of Alumina from Fly Ash.

(e) Decrease in investment is mainly due to redemption of investment in Mutual fund to meet short term liquidity.

(f) Increase in trade receivables is due to credit sales against letter of credit which was pending for realization on reporting date.

(g) e cash and bank balances increased on account of higher investible surplus resulting from internal accruals. e cash and bank balance at the reporting date comprises of deposits with the bank as short term investments.

(h) Decrease in other financial assets is mainly due to reduction in claims receivable from Trusts.

(i) Current tax assets have decreased due to income tax refund received during the year.

(j) Other assets have decreased mainly due to adjustment of refundable additional royalty with royalty payable to Govt of Odisha during the year.

(k) Reserve & surplus has increased on account of profit generated during the year.

(l) Decrease in borrowings is due to availing credit facilities in the previous year against LC received with recourse. During the current year, the

Company has accepted LC without recourse and accordingly credit availed against it is not recognised as borrowing.

(m) Increase in provision due to provision for Site Restoration obligation towards Utkal Coal Mines and closure of Red Mud Pond-I.

9.0 Material Developments in Human Resources/Industrial Relations Front including number of people employed:

9.1 Human Resources: Employment of SC/ST/Ex-SM/PWD/LDP/Minorities in the Company as on 31^st March, 2026 is given in the following table:

Group	Total No of Employees	SC	ST	Ex-SM	PWD	LDP	Minority
Executives	1,715	260	153	0	36	16	66
Non-executives	3,149	479	763	10	61	1,107	120
Total	4,864	739	916	10	97	1,123	186

9.2 Training and Development:

In order to enhance the functional and behavioral competency of its employees and to align the individual need with the business objective of the organization towards increasing production and productivity as well as to improve business culture in the organization, there has been an unstinting effort by your Company to impart skill and behavioral training to its employees. In its commitment for corporate social accountability and good corporate governance, the company also imparts skill development training to contract workers, apprentices, students from Management and Technical Institutes as well as for local populations. As regards regular employees, the Company has imparted training to 9,284 employees with 16,850 training man-days during the year 2025-26 (up to 31^st March, 2026). Further, 1,052 executives were given virtual as well as external training from AJNIFM, Institute of Charted Accountants of India, ASCI (Hyderabad), BOPT, CVC, Centre for Human development & Neuro Linguistic Research (CHDNLR), CII, Department Of Public Enterprise (DPE), Directorate General of Mines Safety (DGMS). Geological Survey of India Training Institute (GSITI), Indian Institute of Management Bangalore(IIMB), Indian Institute of Management Calcutta (IIMC), Indian Railways Logistics of Materials Management, Indian Society for Applied Behavioral Science (ISABS), Indian Society for Training & Development (ISTD), Institute of Public Enterprise, Jawaharlal Nehru Aluminium Research Development & Design Centre (JNARDDC), Life Transformation Academy, New Delhi, National Institute of Personnel Management (NIPM), National Archieves of India (NAI), National Academy of Human Resources Development, Standing Conference Of Public Enterprises (SCOPE), Tata Institute of Social Science (TISS), Mumbai, Tata Steel Adventure Foundation (TSAF), e International Trade Committee of the Bengal Chamber of Commerce, Kolkata etc. on management development programme during 2025-26. In-house skill development programmes for contract labours, Security personnel and trainees were also organized with 5858 Persons during 2025-26 across the company.

ere were 925 apprentice trainees engaged during the year 2025-26 (up to 31^st March 2026) which is 19.01% of employees (i.e. employee strength is 4,864 on 31^st March, 2026) of the company and which is 4.28% of total employees including contractual workers engaged by different contractors (i.e. employee strength is 4,864 on 31^st March ,2026 and 16,722 contract workers engaged through different contractors in the month of March, 2026 (As per the gazette notification dtd. 25^th September, 2019, para-4 (ii), regarding the engagement of apprentice "within a financial year, each establishment shall engage apprentices in a band of 2.5 to 15% of the total strength of establishment including contractual staff"). As a part of corporate responsibility and industry academic interface, 1,459 students from different technical and management institutes across the country had undergone summer internship programme in various functional disciplines across the Company.

10.0 Significant Changes in Key Financial Ratios:

Particulars	FY 2025-26	FY 2024-25
PAT/ Net worth	26.60%	29.51%
EBIT/ Net sales	44.37%	43.18%
EBIT/ Capital employed#	49.04%	53.73%

#Capital employed = Net Fixed Assets (excluding CWIP) + Working Capital

11.0 Change in Return on Net Worth:

Particulars	FY 2025-26	FY 2024-25	Change %
Operating Profit Margin*	44.54	45.06	(1.15)
Return on Net Worth	26.60	29.51	(9.86)
EBIT/ Capital employed#	49.04	53.73	(8.74)

*On Revenue from operation.

#Capital employed = Net Fixed Assets (excluding CWIP) + Working Capital

Note: Decrease in operating profit margin on account of lower realization of Chemical sales. Disproportionate increase in profit with respect to increase in networth lead to decrease in return on networth.

12.0 Safety, Occupational Health and Environment:

Your Company, a Navaratna Central PSU remains steadfastly committed to Environmental conservation, pollution prevention and protection of Environment, Health and safety of employee and workmen. Moving beyond traditional measures, your Company actively pioneers proactive and preventive strategies across all facets of its industrial operations. e Company recognizes climate change as an existential global challenge and has instituted a comprehensive climate strategy focused on carbon mitigation, energy transitions, and systemic resilience.

e Company has embedded circularity into the core of its operational design. By converting industrial by-products into valuable secondary resources, we minimize waste, optimize raw material utility, and close the resource loop. e 4 R Principle (Reduce, Reuse, Recycle and Redesign) is given thrust for minimizing the impact to Environment on account of the Industrial activities by the Company.

Afirming our commitment to compliance and continual improvement all production units are certified to International Standards for Environmental Management Systems (ISO 14001) and Occupational Health and Safety Management Systems (ISO 45001). Further to have cleaner and greener surroundings in all its operating units, 5 S principle has been adopted to improve housekeeping in and around the plant. All its production units including Townships at production units operates with valid "Consent to Operate" under Air & Water Act, Valid Authorization under different applicable Law (Hazardous Waste Authorization, Biomedical Waste Authorization etc.), Valid Licenses under different applicable Law (Factory Licenses, Explosive licenses etc.) and valid NOC etc.

Water conservation remains a vital pillar of our eco-strategy. To minimize water intake from Natural Sources, all waste water generated in plants are treated in the Treatment plants of respective units and are recycled for internal re-use thereby successfully achieving Zero discharge status in all Production Units. is is further augmented by Rain Water harvesting system (Rainwater Harvesting Ponds and Roof top Rain water harvesting system) in operation at all production units of NALCO.

Massive plantation has been done in and surrounding of all production units of NALCO. Around 110 lakh plants has been planted since inception. Your company Celebrated "Chemical Disaster Prevention day", "Road Safety Week/month", "National Safety Week", "World Environment Day", "National Pollution Prevention Day", "Earth day", "Ozone day", "Electrical Safety week", "Vanamahostav", Odisha Disaster preparedness Day, Fire service week etc. for promoting awareness of Safety, Health and Environment amongst the employees, workmen, suppliers etc. during the FY 2025-26.

Concurrent Mining & progressive land Reclamation strategy functions as a model for circular mining. Simultaneously, Concurrent Mining & land Reclamation are being carried out at Mines using OB & top soil followed by mass scale plantation. is avoids storage of OB. e unit Specific major improvements taken up in the field of Safety, Occupational Health and Environment Management at all production units of Nalco during the year are elaborated below:

12.1 BAUXITE MINES:

12.1.1 Safety and Occupational Health:

(a) Safety Talks are being conducted in every department on regular basis in presence of departmental head. Tool Box talks are being conducted in start of every work regularly by supervisors/foremen/officers/engineers.

(b) Monthly Safety Committee meetings (in presence of nominated workmen inspectors, workers representative and Management representatives,) Monthly Illumination survey, Quarterly mock drills and Monthly joint safety audits have been carried out successfully in the year 2025-26.

(c) Half yearly personal dust survey & area dust survey, Annual personal noise & area noise survey and yearly vibration studies of all HEMM were conducted successfully.

(d) Refresher training & basic vocational training are being provided to all workers and First aid training, fire safety training & Behavioral based safety training are being conducted for executives and non-executives employees by internal/outside agency.

(e) Regular PME was conducted for 420 employees and no occupational diseases were detected in 2025-26.

(f) Radar Speed display system with ANPR camera for capturing high speed vehicle plying on tipper road at two junctions was successfully commissioned.

12.1.2 Environment:

(a) A biodiversity conservation policy was developed for Mines to for protection of biodiversity by adopting best biodiversity management practices.

(b) 1,65,029 trees were planted in and around Mines against the target of 1,50,000 trees. Also, around 6,500 fruit bearing seedlings were distributed to local villagers to improve awareness about plantation among the villagers.

(c) Approximately 15.51 Ha of mined out area were rehabilitated with plantation.

(d) 7,000 M2 of grass-tur_ng was carried out inside the Mines as per the target.

(e) Apart from the existing Miyawaki Garden at South Block in extent of 0.25 Ha, Two more Miyawaki gardens have been established during 2025-26 in Central North Block (1 Ha) and South block (0.5 Ha) mined out area in an extent of 1.50 Ha with indigenous plant species of 22 varieties including fruit bearing, medicinal, flowering and of timber value towards improvement of biodiversity with creation of dense forest within short span of time which can also act as Carbon Sink i.e. it can help to capture and store atmospheric carbon dioxide (CO2), which mitigated climate change.

(f) One medicinal & herbal garden have been developed in the back side of Mines Admin Building to enhance the biodiversity.

12.1.3 Awards and Accolades:

(a) e Companys Captive Panchpatmali Bauxite Mines is awarded with the prestigious Kalinga Environment Excellence National Award-2025 under 5-Star category from Institute of Quality Environment Management Systems (IQEMS), Bhubaneswar for outstanding environment management.

(b) e Captive Panchpatmali Bauxite Mines is awarded with Abheraj Baldota Environment Award 2025-26 from Federation of Indian Mineral Industries, New Delhi for its efforts towards environmental protection and management.

12.2 ALUMINA REFINERY:

12.2.1 Safety and Occupational Health:

(a) Fall Prevention Arrangement has been installed for Alumina loading to BTAP Wagons.

(b) Alumina Refinery has developed the Safety Induction Centre to facilitate easy and convenient Safety Orientation for contractor workers. e Safety Induction Centre is equipped with advanced interactive display, ergonomic seating capacity (20 nos.), audio-visual training packages for effective safety training.

(c) Periodical Road Safety checking was done with the help of CISF personnel for checking of the unsafe driving of vehicles including heavy vehicles.

(d) Workplace safety improvement in terms of administrative interventions:

i) Safety Displays & Signages: Retro reflecting SS signages are installed in the plant premises.

ii) Convex Mirrors: 30 nos. convex mirrors have been installed inside and outside of the plant.

(e) e contractor workers were imparted Safety awareness training on Contract Labour Management System (CLMS) module, safety class room training & on field safety awareness session/safety gathering. In FY 2025-26, total 2,414 nos. contractor workers have undergone training on Contract Labour Management System (CLMS).

(f) 221 employees undergone the classroom safety training and around 3,325 nos. of workers have been sensitized in safety gathering.

(g) Four nos. of mock exercises have been conducted to build confidence and ascertain the readiness of Emergency Response Team Members to cater any credible emergency scenarios in and around the Plant and Community.

(h) External Safety Audit as per IS 14489 was carried out by engaging 3^rd party authorized agency during February 2026 & Internal Safety Audit by Cross Functional Executives of Alumina Refinery as well.

(i) Radar based Vehicular Speed Display Boards (02 nos.) have been installed inside Alumina Refinery to alert the vehicle drivers to maintain their speed within prescribed limit.

12.2.2 Environment:

(a) 16,415 trees were planted in and around Alumina refinery in year 2025-26.

(b) Total 37,84,726 plantation done covering area 1818.69 hector.

(c) 2^nd Red Mud Pond construction work is completed but amendment (Rectification) for obtaining CTO are under progress.

(d) E-Waste have been channelized to authorized collection center/ Recycler as per E-Waste Management & Handling Rule.

(e) Hazardous wastes (discarded asbestos and Used oils) are channelized through the authorized agency.

(f) Plastic wastes (Used _lter clothes) are disposed through authorized co-processing cement plant.

(g) Empty Chemical containers/ Barrels are being disposed through authorized recycler.

12.2.3 Awards and Accolades:

Alumina Refinery, Damanjodi has received following accolades in Safety Management during FY 2025-26.

i) Kalinga Safety Excellence Award: "Gold Category".

ii) CII Eastern Region SHE Excellence Award: "4 Star Rating".

iii) 20^th Exceed OHS Award: "Champion Outstanding".

iv) 21^st Exceed Environment Award: "Legend Emerging".

12.3 SMELTER PLANT:

12.3.1 Safety and Occupational Health:

(a) A dedicated web application, "Safety Connect System," was launched at smelter Plant, during the 55^th National Safety Week celebration. is digital platform integrates the entire incident lifecycle - from initial reporting to final investigation - into one uni_ed system.

(b) Factory License of Smelter Plant was renewed for 10 years & valid until 31.12.2035.

(c) Approval of drawings and stability certification for new buildings and structures were obtained from the Director of Factories & Boilers, Bhubaneswar.

(d) e NALCO Suraksha Mobile App has been extensively used for plant safety inspections. In 2025-26, 446 safety inspection points were raised through the app with a compliance rate of 90%.

(e) Fire Safety Certificate of NALCO Hospital building was obtained first time from the Odisha Fire & Emergency Service.

(f) Statutory External Safety Audit was conducted by M/s Vision Wellbeing, & Action Taken Report was submitted to DoFB.

(g) For the first time, third-party periodical health check-ups for contract workers were initiated and 3086 contract workers of the Smelter have been covered till March, 2026.

(h) In 2025-26, a total of 428 workers engaged in work at height underwent vertigo testing. Regular vertigo testing is essential for identifying balance and dizziness issues, ensuring the safety and well-being of workers performing high-risk tasks.

(i) Tra_c signalling systems have been installed at the Smelter Main Gate and Carbon Area Chowk. A safety bulletin has been published on the newly installed tra_c signal system in the Smelter Plant, encouraging adherence to the signals and promoting compliance among others. (j) A safety procedure for the identification of con_ned spaces, in compliance with the Factories Act, has been developed.

(k) In the year 2025-26, 78 safety training programme were held covering 1,671 of employees and 1,232 contractual employees. Additionally, 233 nos. of safety induction training imparted covering 3,426 contractual employees.

12.3.2 Environment:

(a) As a part of commitment to environmental sustainability and ecological balance, Nalco Smelter has undertaken extensive Plantation initiatives aimed at reducing its carbon footprint, enhancing green cover and fostering biodiversity around its operational area. To develop green belt, 3,300 Nos. of saplings were planted inside Smelter Plant and 8,450 Nos. of saplings were distributed in the outside peripheral villages.

(b) As a part of resource conservation and waste water recycling of treated waste water was recycled inside Smelter Plant premises which is 39.00% of fresh water consumption.

(c) As a part of Hazardous waste management, Carbon area Hazardous wastes was disposed at Common Hazardous Waste Treatment, Storage & Disposal Facility (CHWTSDF), Sukinda, Jajpur. Similarly, Carbon portion of spent pot lining (SPL)& Refractory portion of spent pot lining (SPL) was disposed of by authorized actual users.

(d) As a part of statutory compliance ird Party Audit on HW management in Smelter Plant, has been carried out by an ISO 14001 Certified Agency and report submitted to OSPCB on 22.07.2025.

(e) Environment site assessment (ESA II) & Contaminated Site Remediation Study had been completed by M/s. NEERI, Nagpur in May, 2023 and as a part of remedial action, total 20,000 M(appx.) of Spent Pot Lining (SPL) have been excavated from Site-1 & 2 for filling the excavated pits with _y ash.

(f) As a part of plastic waste management, EPR (Extended Producer Responsibility) Registration & obligation in CPCB (Central Pollution Control Board) portal for use of plastic materials for both Importer and Brand owner done under Plastic Waste Management Rule, 2016. Also, Annual filing for plastic waste was done for compliance.

(g) Re-calibration and data validation of PM-CEMS (Particulate Matter Continuous Emissions Monitoring System) for Star Rating Programme has been carried out for ten major stacks (FTP-1 to 8 attached to Potline & FTC-1 to 2 attached to Bake Oven) in the month of November, 2025 by OEM and NABL Accredited Lab. Report submitted to OSPCB on 26.02.2026.

(h) As a part of compliance to special conditions of CTO, performance evaluation of APCD (Air Pollution Control District)/ WPCD (Water Pollution Control Division), online monitoring systems and HD IP Surveillance Cameras conducted by M/s. IIT Bhubaneswar and report submitted to OSPCB.

(i) Installation of online flow measuring device at Drain-1, 2 & 3 completed on 04.04.2025 and working satisfactorily. (j) Installation of de-dusting & conveying system in GAP-1 in CP Coke downstream has been completed.

(k) One bigger mechanized road sweeping machine for cleaning of internal roads in all work zone areas has been deployed through third party contract. (l) Installation of ETP based on RO Technology of Capacity 1200 KLD with recirculation system having provision for online _uoride monitoring system for surface water accumulated in the lowland near WT- 23 is in progress.

(m) Augmentation of De_uoridation Plant of capacity from 1 MLD to 2 MLD project is under way.

(n) A water mist sprinkler at Carbon Area to control the fugitive emission is commissioned in March, 2026.

12.3.3 Awards and Accolades:

Smelter at Anugola has received prestigious Kalinga Environment Excellence Award-2024 in Five Star Category on 21.06.2025.

12.4 CAPTIVE POWER PLANT (CPP): 12.4.1 Safety and Occupational Health:

(a) To carry out plant safety inspection, NALCO Suraksha Mobile App is being used widely.

(b) To demonstrate a continued commitment to safety, the CPP leadership has launched a program of "Safety Line Walk" on the shop floor. ese unannounced monthly inspections involve directly engaging employees and workers to gain valuable insights into workplace safety practices & identifying unsafe Acts & unsafe conditions.

(c) During the FY 2025-26, a total of 85 safety training programs were conducted, covering 1,783 workers.

(d) Safety promotional events i.e. National Safety Week, Fire Safety Week & Electrical Safety Week, National Road Safety Week were carried out for safety awareness among employees & workers.

(e) 04 nos. of full-scale On-Site Emergency Mock Drills were conducted including 02 Nos. of On-Site Mock Drills in association with District Crisis Group (DCG), Anugola & NDRF, Mundali.

(f) A Familiarization and Community Awareness Preparedness (FAMEX) Programme – 2026 was conducted on 06.02.2026 by NDRF at L&D Training Centre in association with CPP, Nalco & DCG, Anugola.

(g) External Safety Audit 2025 was carried out in December, 2025 & the Compliance Report was submitted to Directorate of Factories & Boilers, Odisha.

(h) Statutory Load Testing of Li_ing Tools, Tackles & Pressure Vessels were carried out by the Competent Person approved by Directorate of Factories & Boilers, Odisha.

(i) Eight (08) Nos. of Chlorine Leak Detectors were installed inside CWPH Cl2 Plant Tonner Room.

(j) Digital Tanker Earthing Monitoring System has been installed at FOPH-I for safe fuel unloading.

12.4.2 Environment:

(a) Stack emission was maintained within the specified norm as prescribed by SPCB.

(b) e Ash utilization for the FY 2025-26 is 108.78 %.

(i) In the year 2025-26 around 1.61 lakh MT of Pond Ash has been supplied to NH for road construction.

(ii) To further enhance Ash Utilization through incentive scheme of 150/MT around 7.67 Lakh MT of Dry Ash has been supplied to Brick manufacturer in the year 2025-26.

(iii) By adopting eco-friendly manner of Ash disposal to allotted mine void of South Bharatpur by lean slurry mode around 18.69 Lakh MT of ash has been utilized.

(c) e third-party Compliance Audit for Ash disposal Year was carried out by CPCB approved auditor and the report has been submitted to CPCB.

(d) Zero discharge has been achieved with respect to Industrial E_uent, Ash Pond Overflow water and Sewerage Treatment Plant treated water which has been certified by State Pollution Control Board.

(e) During the FY 2025-26, 82.30 Lakh m³ water has been recycled from Ash Pond & 176.21 Lakh m? of water from Mines Void overflow water was recycled and re-used in CPP.

(f) During FY 2025-26, 10.33 Lakh m? of water from Rain Water Harvesting System was recycled and reused in CPP.

(g) e third-party Compliance Audit for Hazardous Waste was carried out by ISO 14001 Auditor and the report has been submitted to SPCB in September, 2025.

(h) Trial Run of 270 MT of Co-_ring of Biomass Pellets along with Coal in Boilers of Unit # 07 was completed in June, 2025 for statutory compliance.

(i) To comply with the Fuel Policy Notification of Govt. of Odisha, Trial _ring of LSHS was done in Unit # 04 Boiler on 20.08.2025.

(j) 2,710 trees were planted in and around CPP in 2025-26.

12.4.3 Awards and Accolades:

CPP, Anugola has received the following accolades in FY 2025-26:

(a) Kalinga Energy Excellence National Award in the Five-Star Category for the year, 2024 and Kalinga Environment Excellence National Award in

the Four-Star Category for the Year- 2024 organized by M/s. IQEMS in Bhubaneswar on 21.06.2025.

(b) Environment Excellence Award – 2025 organized by Mission Energy Foundation in New Delhi on 12.06.2025.

12.5 UTKAL - D & E COAL MINES:

12.5.1 Safety & occupational Health:

(a) Enhance the road safety through the display of tra_c signal boards, convex mirrors, _uorescent indicators and road safety awareness boards at the conspicuous places at the mine.

(b) Brake testing ramp was made to test the adequacy of brake of tippers deployed in the mine.

(c) SOP has been circulated to the concerned employees of the mines.

(d) Tools box safety talk was given regularly to all the mechanical and electrical employee.

(e) Monthly mock drill of Fire and First Aid was conducted in the mine.

(f) Two nos. of high mast tower were installed to improve the illumination in the mine.

(g) Eighty-eight nos. of HEMM operators were undergone the eye refraction test and 564 nos. of workers of M/s. UCMIPL were undergone initial medical examination.

(h) Internal annual safety audit was conducted by the internal committee constituted.

(i) Twelve nos. of Safety Committee Meetings were carried out in FY 2025-26.

(j) Safety promotional events i.e. National Safety Week, Fire Safety Week & National Road Safety Week were carried out for safety awareness among employees & workers.

(k) 411 nos. of employees have undergone the classroom safety training and around 179 nos. of safety talks & toolbox meeting are imparted to the mine workmen.

(l) Eight nos. of special behavioral training session on "Defensive Driving at Mine" were conducted and 126 nos. of tipper operators were participated the training session.

12.5.2 Environment:

(a) Around 15,325 trees were planted in and around mine area during FY 2025-26. (b) Water audit by accredited agency was carried out for Utkal D & Utkal E Coal Mine. (c) Hydrogeological study for Utkal D & E Coal Mine has been carried out during FY 2025-26. (d) 39.16 KL of hazardous waste was sent to SPCB authorized agency for recycling.

(e) Socio Economic study was carried out in periphery village area of Utkal D & Utkal E Coal Mine in FY 2025-26. (f) Study on "Impact of nallah diversion on biodiversity" was carried out for Coal Mine during this financial year.

12.5.3 Awards & Accolades:

e Companys Captive Coal Mines Utkal-D&E has bagged the following awards in the "Annual Mine Safety Fortnight 2025-26": (a) 1^st prize in the categories of Haul Road and Dust Suppression.

(b) 3^rd prize in the categories of MDO operation.

13.0 Technological Conservation, Renewable Energy Developments and Foreign Exchange Conservation:

e details pertaining to Technological conservation, Renewable energy developments and Foreign exchange conservation for the financial year 2025-26 are detailed at Annexure-IV of the Directors Report.

14.0 Corporate Social Responsibility:

Initiatives taken by your Company towards Corporate Social Responsibility for the financial year 2025-26 are detailed at Annexure-I of the Directors Report.

15.0 Cost Reduction Measures and E_orts to Improve Specific Consumption of Critical Raw Material:

e cost of finished products is a critical parameter for sustaining in the competitive world market. Your Company has adopted many cost reduction measures which has contributed to the reduction of product cost and made your company more successful.

e unit wise specific cost reduction measures adopted are indicated below:

15.1 Bauxite Mines:

a) Reconditioning of poly pulley hubs (1,805 nos.) in crusher and conveyor section and its usage have resulted in cost savings of around 39.171 lakhs.

b) Reconditioning of idlers (4,772 nos.) in crusher and conveyor section and its usage have resulted in cost savings of around 120.34 lakhs.

c) Rebuilding of the crushing segments of SMCP crusher for extension of their life in SMCP resulting in savings of around 120.89 lakhs.

d) Reduction in diesel consumption by parking of Wheel loaders at mining face has resulted in saving of 128.480 KL of HSD.

e) Reduction in diesel consumption by enhanced usage of backhoe excavator in place of ripper dozers-wheel loader combination has resulted in savings of around 137.443 KL of HSD. f) Reduction in diesel consumption by loading of bauxite directly from the pit by small backhoe and tipper combination has resulted in saving of around 436.042 KL of HSD. g) Reduction in Hydraulic Oil consumption by reuse after ultra-_ltration at HEMM section, leading to saving of 3 KL of hydraulic oil.

h) Producing pressurized nitrogen cylinder and increasing the life of HEMM tyres leading to saving of 2.1255 lakhs.

i) Re-conditioning of Engine and re-using it rather than purchasing new engines every time. 3.63 Crore saving in total by overhauling one loader WA700 engine, 02 no. of transmission of 100T on BH100, One engine of dozer D475 rather purchasing new ones.

15.2 Alumina Refinery:

a) De-proprietarization of Q-metal has resulted in direct cost saving of 2.6 lakhs per year.

b) De-proprietarization of Agitator assembly at Precipitator (07 Area) has resulted in direct cost saving of 2.08 lakhs annually.

c) Provision of Medium Pressure Steam ON/OFF Valves in Battery-E & F have been installed to minimize steam loss resulting in Financial saving of _4,80,000/- per Annum.

d) Upgradation of the _ame monitoring system of Boiler # 5 has resulted in avoidance of spurious tripping and subsequent Oil consumption.

e) Utilization of sodic condensate at 08 area has resulted in reduction of treated water consumption.

f) By installation of Pneumatic ON/OFF Valve in Phase-1 & 2 Product Filter Sodic Condensate Line could avoid manual operation of the valve and thereby improving the _lter washing cycle. is is improving the productivity of product _lter and enhance the life of the _lter cloth. ere is a possibility of calculated saving of 51.54 Lakh (Approx.) per annum.

g) Battery- G & H sodic condensate draining provision has been carried out. is has increased RMP water reclaiming and subsequent caustic soda recovery and ultimately having loss of less physical soda.

h) Prevention of idle running of hydrate storage conveyor-719 has resulted in saving of 2.18 Lakhs/year.

15.3 Smelter:

a) Total 933 nos. of graphitized Pots are in operation out of which 48 Pots have been graphitized during 2025-26, resulted in reduction of specific electrical Energy consumption in pot line @ 55 kWh/MT.

b) Smelter has already taken up a pilot project i.e. "Development of low energy cell technology for smelter plant (AP2XN)" with an objective to reduce specific energy consumption under the development co-operation agreement between Rio Tinto/Alcan, Canada and NALCO. e Pots are running successfully with energy savings approx. 150 kWh/MT of specific DC energy consumption in the pot line. Further, procurements of 45 Pots Completed & Planned to start in FY 2026-27.

c) 100% usage of slotted baked anodes from Anode Slot Cutting Machine-2 can reduce voltage drop by 50 mV per pot giving energy savings realization of about 140 kWh/MT of hot metal produced, which is around 31,618.02 MWh annually.

d) Speed Control of cooling water fan using VFD and PID in Cooling Tower CT-3EE which will contribute towards energy saving of around 32,500 units/year.

e) In FTC-1, the 30 kW recirculation pump motor of ABF-1 was replaced with a 7.5 kW motor while maintaining the same required pressure and flow. e total annual energy savings for two pumps amounted to approximately 1,86,300 kWh.

f) In the FTA-2 crane of ABF-1, all motors such as Grab Hoisting (30 kW), Long Travel Motors (2 ? 22 kW), Gulper/Filling Pipe (7.5 kW), Grab CT (11 kW), and Hopper CT (2 ? 11 kW) were converted from DOL to a VFD-driven system. is modification resulted in an average annual energy saving of approximately 1,18,517 kWh.

g) Shi_ing of 150W high bay fixtures from roof truss level to crane girder level at ABF-1 and reducing fixture count from 150 to 100 has resulted in saving of 32,850 kWh of electrical energy per annum with improve in safety aspects also.

h) Indigenous vendors were developed and 100% import substitution was achieved for procuring Steel belt used in Wire Rod Mill from OEM, thereby an annual saving of 118 lakh could be achieved.

i) Two obsolete screw compressors from the new compressor house of the Utility Department have been replaced with two energy-e_cient centrifugal compressors. is replacement has the potential to achieve Annual energy saving of 3,96,000 kWh and Cost saving of 12.27 Lakh (considering 3.10 per kWh generation cost).

j) Replacement of 28 nos. of standard efficiency motors with IE-4 motors has resulted in energy saving of 2,17,980 kWh/year & cost saving of 6.62 lakh/year.

15.4 Captive Power Plant (CPP): a) Computational Fluid Dynamic (CFD) analysis of _ue gas ducts (Economizer outlet to ESP inlet) and supply & erection of guide vanes have been completed in Unit-2 & 3. Uniform flow distribution across the ducts has been ensured with potential reduction of duct erosion & subsequent reduction of ID fan current. Total cost saving of 21.60 lakhs per year is achieved. b) Revamping of Cooling Tower of Unit-3 was carried out to improve Condenser vacuum thereby reduction of heat rate and coal consumption. Estimated coal saving is 4,525 Mt per annum with cost saving is 78.75 lakhs/annum.

16.0 Disclosure of Accounting Treatment:

e financial statements of the Company have been prepared in accordance with Ind AS and relevant provisions of the Companies Act, 2013. e financial statements have been prepared on historical cost basis, except certain financial instruments that are measured at fair values at the end of each reporting period, as explained in the accounting policies.

All assets and liabilities have been classified as current or non- current as per companys operating cycle and other criteria set out in Schedule-III of the Companies Act, 2013. Based on the nature of business, the Company has ascertained its operating cycle as 12 months for the purpose of current or non-current classification of assets & liabilities.

17.0. Corporate Plan:

e Corporate Plan envisages 3 years action plan, 7 years strategy and 15 years vision to improve both bottom line and top line of the Company. It has identified functional and business initiatives to give the Company a competitive edge in order to overcome the impact of commodity cycle in the long run.

e business initiative includes growth through expansion in core business, forward integration through value addition, downstream facilities, selective diversification and backward integration for raw material security. e identified functional and business initiatives are under various stages of implementation.

Your Company is currently undertaking brownfield expansion of its Alumina Refinery, which will increase its capacity by 1 Million Tonne per annum. In Aluminium segment, your Company is planning for a 0.5 Million Tonne brown field expansion of Smelter plant and associated Power plant.

For raw material security, your Company has already started operation of Utkal-D&E Coal Mines and is in the process of opening of Pottangi Bauxite Mines. Your Company has operationalized Caustic Soda plant at Dahej, Gujarat in JV with GACL, which is securing the requirement of the critical raw material.

18.0 Business Development Overview:

NALCOs growth strategy for FY 2025-26 centres on Smelter and Captive power capacity augmentation at Anugola, together with a portfolio of Joint Ventures aimed at raw material securitisation, downstream value addition and overseas sourcing of critical battery minerals.

18.1 Joint Ventures:

Entity / Partner	NALCO Holding	Purpose & Status
GACL-NALCO Alkalies & Chemicals	Equity Structure:	2.7 lakh TPA Caustic Soda plant with 130 MW CPP at Dahej,
Pvt. Ltd. (GNAL) — JV with Gujarat Alkalies and Chemicals Ltd.	GACL: 60% & NALCO: 40%	Gujarat. Operational since March 2022; supplying NALCOs Refinery since August 2022. Produced 2,14,368 MT of Caustic
	JV incorporated in December, 2015	Soda Lye in FY 2025-26.
	Raw material securitisation JV
Angul Aluminium Park Pvt. Ltd.	Equity Structure:	Downstream industrial park for Conductors, Extrusions,
(AAPPL) — JV with IDCO	NALCO: 49% and IDCO: 51%	Castings, Foils and other aluminium products. Fully operational with developed infrastructure; six project proponents allotted land, with a few units already operational.
	JV incorporated in July, 2010
Utkarsha Aluminium Dhatu Nigam	Equity Structure:	Proposed 60,000 TPA High-End Aluminium Alloy Plant for
Ltd. (UADNL) — JV with MIDHANI	NALCO: 50% and MIDHANI: 50%	Defence/Aerospace/Automobile use. Found commercially unviable due to insufficient demand; Ministry of Mines has directed winding up of the project.
	JV incorporated in August, 2019
Khanij Bidesh India Ltd. (KABIL) —	Equity Structure:	Overseas acquisition of strategic/critical minerals (Lithium,
JV with Hindustan Copper Ltd. and MECL	NALCO: 40% HCL: 30%, MECL: 30%	Cobalt). Phase 2 exploration underway on five lithium mines in Argentina (from Jan 2026); technical studies and an NDA concluded for shortlisted Lithium-Cobalt assets in Australia (February, 2026).
	JV incorporated in August, 2019
Proposed JV with NLCIL	JV formation in advanced stage	MoU executed for setting up the CPP Expansion Project in JV mode and for sourcing Renewable Energy power to meet Smelter Expansion power requirements.

18.2 Expansion Projects:

18.2.1 Brownfield Smelter Expansion, Anugola:

(a) Aluminium smelter expansion of approximately 0.5 Million TPA under progress at Anugola, Odisha, to augment production capacity.

(b) Detailed Project Report (DPR) in progress; Preliminary Study Report covering a two-phase expansion prepared, and selection of the Technology Licensor is under finalisation.

(c) Public Hearing for Environmental Clearance successfully concluded; remaining EC related activities and land acquisition through IDCO, Government of Odisha are in progress.

18.2.2 Brownfield Captive Power Plant (CPP) Expansion, Anugola:

(a) 4x270 MW thermal Captive Power Plant shall be established within the existing CPP premises at Anugola to meet the power requirements of the Smelter Expansion Project.

(b) DPR under preparation; Environmental Clearance activities under way.

(c) e project is to be developed in Joint Venture mode with NLCIL (JV Agreement signed), which will also supply requisite Renewable Energy power. Formation of the JV Company is at an advanced stage.

19.0 Development of Micro and Small Enterprises (MSEs):

Your Company continued its commitment to the development of MSEs. Action taken during the year under review towards development of MSEs are as follows:

(a) During the financial year 2025–26, procurement of goods and services from MSEs based in Odisha amounted to 652.19 crore. e total procurement from MSE units, including those outside Odisha, stood at 1,447.94 crore. is represents 61.56% of the Companys total eligible procurement from MSEs, significantly exceeding the mandated target of 25% as per the Public Procurement Policy for MSEs, 2012, and its subsequent amendments.

(b) With special efforts made by your Company, the number of women-owned MSEs registered has risen from 295 (in the financial year 2024-25) to 369 (in the financial year 2025-26).

(c) NALCO has organized and participated in a total of 14 Vendor Meets and Workshops during FY 2025–26, of which 3 were held with a special focus on SC/ST MSE vendors. ese included an All India Vendor Meet aimed at strengthening vendor engagement, held at the Corporate Office on 18.03.2026.

(d) In line with directives of Government of India, your Company has been making all efforts to enhance procurement of goods and services through GeM portal. All MSE vendors were requested to on board in GeM Platform.

(e) To further support MSME partners and ensure faster liquidity, NALCO is registered on all five RBI approved TReDS platforms—Receivables Exchange of India Ltd (RXIL), A.TReDS Ltd (Invoicemart), Mynd Solutions (M1xchange), DTX India (KredX), C2FO Factoring Solutions Private Limited ( C2treds). (f) Your Companys procurement data from MSEs are being uploaded on a monthly basis in "MSME SAMBANDH" portal of MSME Department, GoI.

(g) NAMASYA (Nalco Micro & Small Enterprise Yogayog Application) App has been launched by your Company on 13.07.2018 to facilitate the existing MSEs registered with your Company as well as MSEs not registered. e App empowers MSEs with information about vendor registration process, items which can be supplied by them with technical specification, vendor development programmes and training programmes of your Company etc.

(h) Details of procurement made by your Company from MSEs during the financial year 2025-26 in comparison to previous financial year:

Particulars	2025-26	2024-25
(i) Total eligible MSE procurement through GeM (in value) (_ in crore)	2,352.02*	1895.00*
(ii) Total value of goods & services procured from MSEs (Including MSEs owned by SC/ ST entrepreneurs) (_ in crore)	1,447.94	898.76
(iii) Total value of goods & services procured from only MSEs owned by SC/ST entrepreneurs (_ in crore)	22.80	14.7
(iv) Total value of goods & services procured from only MSEs owned by women entrepreneurs (_ in crore)	107.01	48.66
(v) % of procurement from MSEs (Including MSEs owned by SC/ST & women entrepreneurs) out of total procurement	61.56	47.42
(vi) % of procurement from only MSEs owned by SC/ST entrepreneurs out of total procurement	0.97	0.77
(vii) % of procurement from only MSEs owned by women entrepreneurs out of total procurement	4.55	2.56
(viii) Total number of Vendor Development programs for MSEs	14	5
(ix) Whether Annual Procurement Plan for purchases from MSEs are uploaded on the o_cial website	Yes	Yes
(x) Whether targets reported in Annual Report	Yes	Yes
*Total eligible MSE procurement through GeM excludes items such as coal, caustic soda lye, fuel oil, items procured against GTE, imported goods and works contracts for which specific exemption has been sought from the ministry

20.0 Payment to Micro, Small & Medium Enterprises (MSME):

During the year, your Company had made payment to MSME Suppliers from the date of acceptance or deemed acceptance of relevant goods or services without exceeding 45 days except in 10 cases.

21.0 Total Procurements made through GeM:

During the year, out of total procurements of 7,101 crore made by the Company, procurements of 4,200 crore were made through GeM.

22.0 Cautionary Statement:

Certain statements made in the Management Discussion and Analysis Report relating to the Companys objectives, projections, outlook, expectations, estimates and others may constitute ‘forward looking statements within the meaning of applicable laws and regulations. Actual results may differ from such expectations whether expressed or implied. Several factors could make significant difference to the Companys operations. ese include climatic and economic conditions affecting demand and supply, Government regulations and taxation, natural calamities over which the Company does not have any direct control.